Fayetteville Airport Approves Budget

By Skip Descant

Posted: November 13, 2009 at 6:07 a.m.

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FAYETTEVILLE — The Fayetteville Executive Airport will dip into its reserve by about $50,700 next year to balance the airport’s budget.

The airport has roughly $900,000 in reserve, said Ray Boudreaux, executive director of Drake Field.

A new expense in the airport’s 2010 budget stems from a Washington County requirement the city pay property taxes on commercial hangar spaces. That cost is expected to be $21,700 next year on those hangars rented to commercial tenants.

“Are we going to pass on this assessment on their rent?” asked Richard Greene, a member of the airport’s board of directors.

“That is a potential,” Boudreaux replied.

The airport will also be able to recoup some money previously lost. New tax regulations allow municipal airports to keep all tax revenue it generates through sales such as fuel. In the past, some of that money went to the city’s general operating budget. The change will add about $27,600 to the airport’s bottom line.

“We have that also in the budget,” Boudreaux said. “And that just about offsets the property taxes.”

Also putting pressure on the 2010 budget is the airport’s new requirement to pay 100 percent of Boudreaux’s $91,000 a year salary. In the past, 50 percent of his salary came from Fayetteville’s budget due to Boudreaux’s past role in economic development, said James Nicholson, finance coordinator for the airport.

The Fayetteville Executive Airport is a publicly operated airport which — for budgeting purposes — functions as an “enterprise fund.” That means the department, like the water and sewer division, generates its own revenue and expense structures.

For example, the airport board voted to raise rental fees on its 81 hangar slots. Small slots will be increased by $10 a month. The larger ones increase by $15.

“We’re going to be running a deficit next year, and personally, I think it’s required that we go forward with this increase,” said Bob Nickle, chairman of the airport board.

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