HomeMy WebLinkAboutReport - Mail Packet - 12/23/2014 - Memorandum From Jason Licon, Fort Collins Loveland Airport Director, Re: Airport Director�S ReportFort Collins – Loveland Airport Page 1 of 2
4900 Earhart Road Loveland, Colorado 80538
(970) 962-2852 FAX (970) 962-2855 TDD (970) 962-2620
TO: Airport Steering Committee; City Councils
FROM: Jason Licon, Airport Director
RE: Airport Director’s Report
DATE: 12/12/2014
Colorado Department of Transportation Division of Aeronautics Funding Shortfall
The Colorado Department of Transportation Division of Aeronautics is funded through State sales and
excise tax on aviation gasoline and jet fuel. These fuel taxes are received by the Division and 65% of it is
immediately reimbursed to the airport from which the tax revenues were derived. The remaining 35% of
collected taxes funds the discretionary grant program, where it is distributed to all of Colorado’s 72 public
use airports and to aeronautical safety and education programs. Historically this grant fund has had
approximately $15-20 million annually for disbursement to Colorado Airports, and since 2011 our airport
has applied for and received over $2.4 million applied to capital projects. The discretionary grant
program is funded at a 90% level requiring airport contribution match funding of 10%.
On November 19th a Colorado Aeronautics Board meeting was held to discuss a significant issue relating
to the state discretionary grant program for 2015. During the meeting David Gordon, Director of the
Aeronautics Division, stated that they would have 20% or less of their anticipated funding available for
the grant program during the 2015 grant cycle. The funding shortage was explained as being due to
unrealistic revenue forecasts created by the reduction in fuel and oil prices that has occurred since July.
The resulting funding thought to be available (approximately $3 million) will only be approved to airports
as the state match for Federal Aviation Administration (FAA) funded projects at airports which are
currently funded at 90%. This issue may result in numerous planned projects at airports across the State
to be cancelled or delayed.
The impact of this unanticipated funding reduction for our Airport will result in a 25% ($360,000)
reduction of available funding to construct the planned $1.5 million snow removal equipment storage
facility. The Airport has had a snow removal equipment storage facility in its capital improvement
program for over 20 years, and has finally reached a priority status from the FAA and the State to enable
its construction. Currently the Airport has funding that will be rolled over from 2014 to be applied to the
project and additional funding planned for use in 2015; $610,000 in FAA funding, $370,000 in past
appropriated state grant funding, and approximately $100,000 in local match totaling nearly $1.1 million.
This news has caused Airport staff to reevaluate the planned design and construction of the building with
what funding is currently available. Airport equipment and materials are currently stored in various
locations across the airport including hangar buildings, a century old barn, and outside, creating reduced
useful life of equipment, inefficiencies in equipment and supply management, and the reduced ability to
generate revenue from aircraft storage facilities. The following photo depicts locations around the airport
where equipment and supplies are currently located:
Fort Collins – Loveland Airport Page 2 of 2
Police Training Campus
Airport staff continues to work with the police training campus project management team to ensure that
their timeline for the project design and construction would not be hindered by Airport regulatory
requirements. These requirements are set forth by the FAA and must be completed prior to leasing of the
property for non-aviation purposes. The process of obtaining the necessary land release from the FAA
and the environmental review was started this month with the hope that it would be completed and
approved no later than April 2015.
A land release from the FAA is necessary because the property was originally acquired using FAA funds,
and also because the Airport accepts Federal assistance for capital projects. During the past four years the
FAA has funded 84% of all Airport capital projects for a total of $9.8 million. Since the property will be
used for non-aviation activities we are required to apply for a land release allowing the change in use, and
releasing it from our FAA grant obligations.