Your recent editorial touting the airport plans envisioned by
the new airport manager, Bill Gere, showed an alarming lack of
understanding of the controversy surrounding the matter. Some of us
at the airport have a different point of view.
Editor,
Your recent editorial touting the airport plans envisioned by the new airport manager, Bill Gere, showed an alarming lack of understanding of the controversy surrounding the matter. Some of us at the airport have a different point of view.
We are certainly not against improving the airport. Some of us have worked toward that goal for a long time and we have always recognized the benefit of the airport to the area economy. What we don’t like are the apparent mismanagement proposals being put forth in a baloney-driven fog concerning the airport. And, we don’t like being depicted as selfish villains in this controversy. The hanger rent is just part of a larger issue.
Current hangar rents were set about four years ago after the city hired a local accounting firm to do a cost analysis concerning the rates. These rates were agreed to when the new city-built hangars became available and the privately built Keenan hangars were turned over to the city. Rates are also keyed to the CPI for annual increases.
With the addition o the new hangars and an increase in rental fees, revenues have created a large surplus over expenses. Whereas in 2001 they had been showing a surplus of about $50,000 on revenues of about $300,000, in 2004-2005 with revenue of $543,000 they were reporting a loss of $243,000 with expenses at $787,000. Among other things, the city had started throwing in a charge to GASB depreciation. Depreciation of what and on what basis has not been revealed.
The city in recent years has accepted grants from the Federal Aviation Trust Fund for several million dollars for airport improvements that have been made. With the money came conditions, one of which was that the city is prohibited by law, from diverting airport revenues from the Airport Trust Fund. This sudden large charge for depreciation and charges for such things as an enterprise fee (for their own airport) seem rather suspicious.
John Weatherly, Hollister
