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Posted: May 13, 2021
Rapid City
Agenda Item Summary

Agenda Item Ref. #: WS060221 03

Agenda Item Title:

Approve Revision to Airport Rates and Charges for Airline Terminal Rent and Landing fees

Origination Group:
City Council Working Session
Origination Meeting Date:
06/02/2021
City Council Hearing Date:
06/07/2021
Staff Contact:
Patrick Dame, Airport Director
Agenda Item Summary:
As per our contract with the air carriers, their rates and charges are set based on our annual budget. Each year, our budget is then reconciled to the actual expenses to determine whether additional rent is due from the air carriers, or whether we owe them a credit. If our expenses come in higher, they pay the airport the difference the following year. If our expenses come in lower, we issue credit to the carriers. This applies to both the terminal rent paid by the carriers, as well as the landing fee. Our air carrier contract also requires us to do a mid-year adjustment to the rates effective July 1 if the established landing fee is projected to vary by more than 10%. Because of the federal grant money we will be receiving yet this year, and our rate reconciliation from 2020, we are projecting the landing fee revenue required from the air carriers to be reduced by more than 55%. The mid-year rate reduction meets our air carrier contract requirements. The rates will be adjusted again beginning January 1, 2022, based on the 2022 budget. Attached is the revised rate sheet for 2021 with an effective date of July 1, 2021, which was approved by the Airport Board of Directors on May 11, 2021.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

pdf WS060221 03 RAP RATES FY 2021 - Revision 1

Published in 2021 City Council Working Session Agenda Items

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