HomeMy WebLinkAboutCouncil Minutes Airport Budget Meeting - May 6, 2026 (208) 359-3020
35 North 1st East
Rexburg, ID 83440
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City Council Fiscal Year 2027 Budget Meeting Minutes – May 6, 2026
Mayor Jerry Merrill
Council Members:
Bryanna Johnson David Reeser
Colin Erickson Bill Riggins
Eric Erickson Alisha Tietjen
City Staff:
Spencer Rammell – City Attorney
Matt Nielson – Finance Officer
Keith Davidson – Public Works Director
Alan Parkinson – Planning & Zoning Administrator
Scott Johnson – Economic Development Director
Deborah Lovejoy – City Clerk
4:30 P.M. Fiscal Year 2027 Budget Meeting – Airport
Finance Officer Nielson reviewed the Airport Budget Report.
Finance Officer Nielson reviewed the Air Operations Budget Report. The three airport funds are operations, FAA construction projects, and future relocation reserves. The airport operates
as a 50/50 partnership between the city and county. The proposed 2027 budget may require approximately $45,500 in city and county subsidies.
Rental Income-Airport Hangers, Landing Fees-Airport, and Fund Balance Carryover: Hangar rental income is expected to increase through a proposed 10% lease rate adjustment. Projected
landing fee was removed because Ameriflight no longer operates at the airport. The airport is expected to carry over $21,200 into the next fiscal year, with total projected revenue of
around $146,000.
Expenses: major operating expenses include snow removal, maintenance, compliance labor, fuel, employee benefits, insurance, and the Rexburg Air Service FBO agreement. Airport repairs,
including lighting maintenance, would be funded through hired work expenses. Proposal to purchase a camera and security system cost approximately $25,500 plus $4,200 annually for software
maintenance. The request for security upgrades is due to concerns about theft, vandalism, and unreliable gates.
Expenses: Discussion regarding a proposed $60,000 storage shelter for the airport tractor. Renting storage space instead of constructing a new building would be more feasible. A rental
storage option at
a nearby U-Haul facility for approximately $142 per month instead of building a new storage shelter. Concern about protecting the expensive tractor. Finance Officer Nielson agreed to
remove the proposed $60,000 storage shelter expense from the budget, reducing the required city subsidy.
Finance Officer Nielson reviewed the Airport Construction Fund Budget Report.
Discussion: The city’s contribution could increase from approximately $32,000 to about $134,500 if all planned projects proceed. Federal and state grant funding estimates were discussed
for FAA-related construction projects. The airport is projected to use most of its carryover funds, decreasing from approximately $77,000 to about $2,000 if all projects are completed.
The consulting expenses appear higher due to the shortened current fiscal year. A new lease land mitigation expense requires annual $25,000 payments toward future airport relocation
land acquisition costs. Taxiway and crack seal repair work, including pavement repairs near the south gate damage during snow removal operations.
The repair work should be completed during the current fiscal year rather than postponed.
Discussion of the ongoing crack seal project, the full $443,000 allocated for the project would likely be spent by September. The environmental assessment budget, which includes approximately
$182,000 for the current year and an additional projected $100,000 for the following year, is based on the airport’s Capital Improvement Plan. The proposed construction budget represents
a significant increase compared to prior years. While the city and county have traditionally contributed between $25,000 and $35,000 annually, the proposed budget would require contributions
of approximately $135,000 due to anticipated land acquisition costs associated with airport relocation planning. The increase is primarily driven by the required local match for a projected
$2 million land purchase. The city could either fund the match through the general fund or use the airport reserve fund. However, City Staff recommended preserving the reserve fund because
the estimated cost of the future airport project continues to increase.
Finance Officer Nielson reviewed the Airport Relocation Reserve Fund-City Only Budget Report.
Preliminary estimates for future airport relocation, land acquisition and property swaps are approximately $2 million. The reserve fund is projected to reach under $1.2 million by the
end of 2027 if annual city contributions of approximately $30,000 continue along with investment earnings. County Commissioner Todd Smith noted that the county’s reserve account also
holds slightly more than $1 million. City Staff recommended continuing to build the reserve fund rather than using it prematurely, emphasizing that the eventual airport relocation project
will likely require all available reserves and additional funding.
Vince of Adura Engineering explained that the airport would likely incur only annual mitigation payments during the next budget year because the environmental review process must be
completed before land acquisition can proceed. As a result, he suggested moving the larger land purchase expense to the 2028 budget year. Finance Officer Nielson agreed that delaying
the acquisition would significantly reduce immediate budget pressures but recommended increasing annual city and county reserve contributions to approximately $75,000 each to accelerate
savings for the future project.
Adjournment
APPROVED:
________________________________
Jerry Merrill, Mayor
Attest:
________________________________
Marianna Gonzalez, City Deputy Clerk