New Smyrna Beach Airport Changes

Money:     (Red #'s are footnotes to sources listed below.)

As of September 30, 2006, the Airport Fund had only $50 in cash!  To pay bills, the Airport Fund borrowed $77,356 from the General Fund. 1

If that $77,356 were back in the General Fund, maybe some of this year's General Fund budget cuts might have been avoided.

Embry-Riddle and other flight schools pay nothing to the airport for landing fees.  Would property tax rates in New Smyrna Beach be as high as they are if Embry-Riddle and other flight schools paid landing fees? 

The logic would be very simple.  From the Annual Financial Report:  "The Airport / Industrial Park Fund is a special revenue fund used to account for user charges for those using the airport facilities . . . " 2

For the year ended September 30, 2006, Airport Revenue was $1,401,567 against Expenditures of $1,585,044.  In other words, the Airport spent more than it took in by $183,477. 3

To put this into perspective, there were approximately 150,000 takeoffs and landings during this period of time.  Total Airport Expenditures of $1,585,044 divided by 150,000 results in Airport Expenditures of $10.56 per takeoff or landing.  A touch and go operation (both a takeoff and a landing) would be $21.12.  Again, why not charge reasonable user fees to help pay for the Airport Expenditures?

In addition, the city's auditors were concerned about loans from the General Fund to other Funds including the $77,356 above.  "While the General Fund reports unreserved, undesignated, fund balance at September 30, 2006 of $11.3 million, approximately $9.6 million of that balance is invested in non-cash assets; namely, amounts due from other funds. . . . this leaves the General Fund in a precarious financial position until such time that the other funds reimburse the General Fund for these significant short-term borrowings."  4

In spite of these financial issues, the airport currently has plans to spend over $19 million in capital improvements:  5

Years	Totals
2005-2009	$   8,348,740
2010-2014	$   4,644,695
2015-2024	$   6,313,895
Total	$ 19,307,330

Why spend all of this tax money for something many taxpaying residents do not want?

Sources:

1 Comprehensive Annual Financial Report, September 30, 2006, pages 19 and 51.)  Hereinafter cited as Annual Financial Report.

2  Annual Financial Report, page 36.

3  Annual Financial Report, pages 22 and 75.

4  Annual Financial Report, page 142.

5  Airport Master Plan and Airport Layout Plan dated May 6, 2005 for New Smyrna Beach Municipal Airport, page 7-2.  Hereinafter cited as Master Plan.

6  Master Plan.