TO: Mayor and City Council
THROUGH: Krishna Namburi, Acting City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Modification, change, and deletion of certain fees related to landing and aircraft parking at the Salem-Willamette Valley Airport (Salem Municipal Airport).
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Strong and Diverse Economy.
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SUMMARY:
summary
Since the adoption of the City of Salem FY 2025 Fee Schedule in June 2024, updates to certain fees managed by the Salem-Willamette Valley Airport (Salem Municipal Airport) are needed. Adoption of this resolution would impact landing fees, rename tie-down fees to aircraft parking fees, and further modify / add aircraft parking fees. All other fees in the FY 2025 Fee Schedule would remain unchanged.
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ISSUE:
Shall the City Council adopt Resolution No. 2025-3 modifying certain fees and charges related to landing and aircraft parking fees at the Salem-Willamette Valley Airport (Salem Municipal Airport)?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2025-3 modifying certain fees and charges related to landing and aircraft parking fees at the Salem-Willamette Valley Airport (Salem Municipal Airport).
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FACTS AND FINDINGS:
After publication of the FY 2025 Fee Schedule, fees at the Salem-Willamette Valley Airport (Salem Municipal Airport) were identified for adjustment to help address the budget shortfall forecasted in the Airport Fund. Although the fee adjustments will not completely address the projected deficit in the Airport Fund, these changes are recommended by the Airport Advisory Commission. The proposed fee increases were first presented at the City Council meeting of January 27, 2025, with the reading of Ordinance Bill No. 1-25. The proposed fee increases and changes are accomplished through the adoption of this resolution, which will become effective after Ordinance Bill No. 1-25 becomes effective on March 12, 2025.
Airport staff estimate these fee adjustments will increase revenue annually between $50,000 - $100,000. The Airport Fund forecast anticipates use of $620,000 of fund balance in the current fiscal year to cover operating expenses. Increases to the fees in the current year will decrease the use of fund balance.
BACKGROUND:
Adoption of the City of Salem FY 2025 Fee Schedule occurred on June 10, 2024. As necessary in a fiscal year, needed changes to specific fees are identified by departments and then brought to City Council by resolution for adoption.
Attachments:
1. Resolution No. 2025-3
2. Resolution No. 2025-3, Exhibit A - List of proposed modifications to the FY 2025 Fee Schedule