Members of the San Bernardino International Airport Authority (SBIAA) gathered Wednesday, June 24, for their monthly meeting via videoconference and passed the budget for the next fiscal year beginning in July 2020 for just over $58 million.
Director of Finance Mark Cousineau said next year’s budget would take a conservative approach due to coronavirus pandemic. He said that management has been and is currently scrubbing receivables, following up with airport tenants and working hard to obtain new tenants to the revenue stream.
Cousineau anticipates the general fund will have up to $13.4 million for the next fiscal year, property management will have $7.6 million, capital projects that include grants and other funds will have $6 million. About $3 million from capital projects will be used for runway improvements. Debit services will have $8.5 million, which will be used by the airport as it tries refinancing the structure for SBIAA’s debt and the FBO (Luxivair SBD Enterprise Fund) that is predicted to produce gross proceeds up to $19 million.
The airport received $69,000 from the Cares Act passed by Congress in response to the pandemic.
Cousineau also said that while the price of jet fuel was down, sales of jet fuel were up due to increased activity.
Cousineau showed members a PowerPoint breakdown of the SBIAA’s general funds uses by activity. Topping the list was administrative, airfield operations, security, along with the fire department and airfield maintenance.
One new item added to the activity list was $169,000 of the general fund budget for noise and community outreach. Executive Director Michael Burrows said the airport wants to be “proactive” in the way they educate and inform the public about noise pollution. He said the airport has a person assigned to handle any complaints or issues that may come up.
Cousineau said that the badging revenue did not come up to expectations for the prior year due to Amazon Air not coming online as quickly as they thought it would.
Thes revenues include security badge processing fees that will be increased for the next fiscal year due to inflation. The fees cover background checks and tests for personnel that need to be on airport property.
Director of Aviation Mark Gibbs said that “The FAA and a growing need from TSA requires that we control access to the airport,” and how that personnel/contractors “makes its way into gates, doors and leasehold areas so the we [the airport] know who’s on the airport at any given time.” Gibbs went on to say that it was a labor-intensive process to manage over a 1,000 badges at the airport along with a “big training component,” and to properly manage who should be at the airport.
Salaries and wages were also down, mostly due to vacancies that the airport has had for the past year.
In other action, an amended loan agreement was voted and approved by the commission that will extend the term of certain debt of the SBIAA owed to the Inland Valley Development Agency (IVDA). This debt originated from prior agreements approved and executed by the Joint Powers Authorities (JPA) in 2004 and 2005 and subsequently consolidated in 2014. The extension will facilitate the meeting of SBIAA’s debt obligation in a full and timely manner while avoiding the need for SBIAA to request additional support of IVDA under its military base reuse airport obligations.
The agreement’s principal amount of $1,203,313.59, is to be paid by SBIAA to IVDA over a term of seven years at two percent interest or at the rate designated by the Local Agency Investment Fund, whichever is greater, compounded semi-annually. SBIAA will make initial semi-annual payments composed of principal and interest in the amount of $93,109.19, beginning on April 1, 2021.
SBIAA’s next meeting is on Wednesday, July 22.