Juneau, Alaska (KINY) – The City and Borough of Juneau Assembly Finance Committee met on Wednesday evening to receive a budget presentation regarding Juneau International Airport.
According to the budget proposal for JIA, revenues are projected to rebound due to post-COVID impacts, with Increased travel numbers and increased aircraft operations meaning revenues will rebound to near pre-COVID levels.
Airport Manager Petty Wahto addressed the committee, starting with the numbers on an increase in expenses.
“Revised FY 20 to projected FY 22 expenses, we’re looking at an increase of $ 690,000 to end the year,” Wahto said. “Most of that is capital projects and some maintenance items that were added on, but it’s going to be exceeding our spending authority.”
And Wahto says expenses over the next two years will be increased above what they were during the past two years.
“We are expecting increases for FY23 proposed expenses and FY24 proposed expenses,” Whato said. “We’re looking at, for FY 23, about $ 890,000 over where we were in FY 22. And for FY 23, we’re looking at just under a million, about $ 977,000 in more expenses than we were in FY 22. And even though we’ve had a lot of efficiencies around the terminal, we have expenses that are beyond the control. “
Wahto says more revenue is on the way and means a rebound over the two years of the pandemic.
“We are expecting a slight increase compared to where we projected, of about $ 443,000 more than what we thought we’re going to be down, but it’s starting to rebound,” Wahto said. “And as we look at FY23 and FY24, where we’re projecting as we’re seeing more cruise ships, more travel, definitely more passengers, it’s all adding into a rebound of all those fees and charges that we would normally collect. Fees In almost every category we’re expecting increases. We’re looking at FY23, being just under $ 1.2 million higher than we were in FY 22 and just under $ 1.4 million higher in revenues than we are. were in FY 22 for FY24. “
The major revenue streams for JIA are landing fees, fuel flowage fees, security screening fees, rents, and aviation fuel.
Wahto added that rental relief for some tenants will continue.
“We have a lot of tenants who have not turned a prop or rotor in 30 months,” Wahto said. “Even if they have a good summer, they’re not going to make up for what’s happened for the last almost three years. That rent relief is allowed by our CARES grant … from the FAA. So, this is still to help. with commercial aviation, so it’s your TEMSCOs, your Ward Airs, your Coastal Helicopters, your Wings Airways; it’s commercial tenants that we’re still giving rent relief to. “
Expenses for increased personnel costs are also expected, Wahto said.
“Normally in any one year, you have longevity increases, you have certain increases,” Wahto said. “But, in this particular case, we also have projects that are not directly under construction for the projected FY23 and FY24 years. We’re in a lot of design right now. So, normally we have personal costs, and I’m not talking about our projects office or anything like that, but we have a lot of folks out on the airfield who may be working directly on a project, and that means that they can charge that project so that it is paid to them through federal funds, and therefore credit to our operating budget. We’re not going to see that right off the bat. So, now that looks as if we’re up $ 273,000 for FY 23 and over $ 300,000 for FY 24, compared to FY 22. “
Insurance increases are also a factor looming large for Wahto.
“Insurance has gone up, and in the case of the airport, for property and special insurance,” Wahto said. “We’re looking at almost a $ 190,000 increase for FY 23 and almost $ 200,000 for FY 24. This is double where they were at for FY 22.”
Out of JIA’s control, when it comes to spending, are de-icing chemicals, sand costs, shipping, and full-cost allocations.
“Right now, the biggest bulk item that we order is going to be de-icing chemicals for the runway and sand,” Wahto said. “One of our number one bills that we receive every year. We’re looking at expecting almost $ 382,000 of increased costs, and that’s looking at ordering the same amount, it’s the increasing cost for the product, as well as shipping and then full- cost allocation being up with the city. When their costs go up our proportionate amount goes up as well. “
Current projects at the airport include terminal reconstruction, taxiway rehabilitation, finalizing lighting, outbound baggage conveyor system design, parking lot rehabilitation, Float Pond Phase II South Road and pond embankment, main ramp / apron parking rehab and jet overnight parking.