Airport Rant by Don Quixote

Hawes says the ultimate runway extension is a long-term project, and the corporation is not actively seeking a passenger service. The other issue is taking the runway from 3,600 to 4,000 feet could cost $4 million because Vernon Creek needs to be relocated. “Before we consider spending the money, we have to make sure there is a return to the city,” said Hawes. Airport plan panned by Beardsell

Ian Hawes, President of the Vernon Airport Corp. has presented the Strategic Business Plan (Fletcher 2006-2007), The Economic Impact Assessment (GHK July 2006) and the PDK airport Planning study of Oct 2005 to the City Council on Oct 10/2006. At this meeting he indicated that the completed extension to the Airport would come in around $340,000 which is a little bit more than Airport Manager's Grahame Go's $250,000. Go said the airport has budgeted $250,000 for the project, to come out of the airport's own capital reserve fund. Airport closes to extend runway . Mr Hawes in his address to Council also talked about the Airport's Reserve Fund.

I agree with Mr Hawes that this is a long-term project that must be evaluated to make sure the City and taxpayer gets a return. It is important that we understand the financial costs both past, present and future and that this information is communicated in an open and transparent manner.


Airport Runway Reserve fund:
The City transferred $250,000 in 2004 and 2005 and another $250,000 is authorized for 2006. This money totals $750,000 and after paying the $340,000 for the extension in summer of 2006 to creek's edge leaves a total of $410,000. This money should be returned to the city to be placed in an Airport Runway Reserve account. The money in the 5 year budget $300,000 in 2007, $350,000 in 2008 and $250,000 in both 2009 and 2010 (Total $1,150,000) that is to be used for Airport Runway extension should be reexamined in the upcoming 2007 budget cycle. (Remember $143,000 equals 1% residential tax increase in 2006).

The additional $360,000 that is part of the Airport 2007 budget request for paving of an area referred to as Runway Charley on the South side of the Airport should be treated as a new capital request. The requested $105,000 for a 2007 operating Grant will be examined and voted on in the 2007 budget process.

Airport Financial Statements:

• Council has yet to appoint an auditor for the Airport Corp.
• The operational subsidies for 2005 was $105,864 and $76,000 in 2004
• The operational deficits for 2005 was $63,855 and $34,642 in 2004 (total $98,498)
• There are no Reserves shown on the latest Airport Financial Statements at 2005 year end. There is $414,933 in the Cash Account but this is still a little short of the $500,000 that should be in the Runway Reserve ?
• There is no indication in the 2006 Airport Budget where the money for the Consultants reports are coming from. ( Strategic Business Plan (Fletcher 2006-2007), The Economic Impact Assessment (GHK July 2006) ). Perhaps they are hidden in the City of Vernon's budget in the undetailed Consultant's line item?

It is important that the taxpayer see all past and future costs of the Airport shown in an open and transparent way. These include:

• Costs of all land and infrastructure that is paid for by the taxpayer.
• Will the Airport deficits be covered by the taxpayer or are they intended to be covered by future profits?
• What is the cost and who paid for the Consultant's reports?
• Should we be taxing in the years 2007-2010 to build up a reserve for a project that may never be completed or even approved?