Thursday, August 08, 2013

Airport Authority finishes year in the black: Eastern WV Regional/Shepherd Field (KMRB), Martinsburg, West Virginia

 MARTINSBURG - The Eastern Regional Airport Authority ended its fiscal year $5,988 in the black.

"Revenues are up, but expenses are up," Airport Authority Chairman Rick Wachtel said.

The authority finished the fiscal year that ended June 30 with revenues of about $267,157, which was $31,957 over what was projected.

About $37,517 of the revenues were matching grants or reimbursements from the West Virginia Aeronautics Commission and the Federal Aviation Administration for money that had already been expended, which must be recorded as revenues.

Also, a bank account was closed out and the remaining balance of $6,857 was transferred to the authority's general account, which shows up as revenues.

There was a net gain of $12,542 in hangar rentals for the year. The largest amount was rentals for the so-called Howard Hangars, which the Airport Authority recently purchased from a private owner.

Landing fees came in at $740 below budget, and fuel flowage fees were $2,180 below budget.

With leasing the airport terminal's restaurant to Joanne Cooke of Gourmet Cooke for catered events, the restaurant rent came in $4,270 over budget.

The big difference in revenues is the land leases the Airport Authority has with Action Aviation and Aviation Solutions.

Action Aviation, which owns the former Sino-Swearingen aircraft assembly plant in the Airport Authority's business park, owes the entire year's payment of $10,033.

Aviation Solutions, which owns the former Tiger aircraft assembly plant in the business park, owes $14,757 of its $21,082 lease for the year. The company also owes lease payments from the year before.

"If all the leases were paid, the revenues would be about $40,000 more," Wachtel said.

After an executive session, authority members voted unanimously to sue both companies to collect the back payments.

Authority member Steve Cox said this might be a good time to look at what the Airport Authority charges for its services.

"With expenses continuing to go up, we might want to make adjustments, especially if we have to take over maintenance of two hangers," he said, referring to the Action Aviation and Aviation Solutions properties.

According to the lease agreements, if the companies default on their payments, the Airport Authority can take ownership of the properties in lieu of the delinquent payments.

Cox asked that a survey be taken of what other airports are charging and the issue be discussed at the authority's September meeting.

On the expenses side, the Airport Authority's costs were up $25,969 over projections for a total of $261,169.

The authority's two electric accounts were up a net of $1,772; gas and diesel fuel were up about $300; and general maintenance was up about $850.

Equipment repairs were $4,205 over what was budgeted, because of increased expenses to keep the authority's aging maintenance trucks, mowing and snow removal equipment operating, Joyce McDonald, administrative assistant, said after the meeting.

Airfield light repairs cost $6,381 more than was expected, because runway lights had to be replaced after they were hit by airplanes, McDonald said.

And terminal repairs and supplies came in $4,593 over budget, because the kitchen for the terminal restaurant had to be upgraded for Gourmet Cooke's catering service, McDonald said.

Legal expenses were under budget by $2,135 and the annual audit was $1,128 under budget.

Various insurances, such as liability, workers' compensation, pensions and health, were over budget by $3,522.

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