Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Finance topic
No spam. Unsubscribe anytime.
Airport commission warns of multi‑year cash shortfall and seeks levy split changes
Summary
Brainerd Regional Airport Commission chair Daryl Palmer told council the airport is drawing down reserves and faces a three‑year runway without changes; he urged action on utility surcharges and supported a proposed ordinance to change payment structure and county/city levy split.
Daryl Palmer, chair of the Brainerd Regional Airport Commission, told the council the airport typically brings in about $1 million in annual revenue but is spending roughly $1.5 million annually, draining reserves at a rate Palmer estimated at "about $250 to $300,000 a year." He described personnel as the single largest expense (about 55%) and said unrestricted cash and CARES-era funds are limited by restrictions.
"We're using up savings at the rate we are going is, about 3 years out of the funds that are unencumbered," Palmer said, urging the council to consider an ordinance to change how payments and levies are structured between the city and county. He outlined a proposed request for city and county support of $2.35 for 2027 (with gradual escalations in following years) and described an anticipated shift in cost-sharing—if the county ordinance passes—where the county would take a larger share (moving toward 75% county / 25% city, then increasing in later years).
Councilmembers asked about utility charges to the airport (a claimed 200% tariff from Brainerd Public Utilities) and whether annexation could resolve the double billing; commissioners and staff said annexation might help and acknowledged discussions with the Public Utilities Commission. The council did not take formal action on the airport budget at this meeting but heard the commission's request and discussed the proposed ordinance and levy split timeline.
