"FULLERTON June 20, 2008 =96 The Fullerton Municipal Air****t =96 Orange
County's last general-aviation airfield =96 is $3.9 million in arrears
for city franchise payments.
City officials want the airfield's revenues to match what it costs to
operate.
Founded in 1927, the city-owned air****t started paying a franchise fee
in 1982 after officials determined local government was financing many
air****t services, including police, fire, accounting, employee
recruitments and benefits and the ordering of goods.
"The initial payments were $200,000 and kept constant until 1992, when
it was decided the fees should increase to keep up with inflation
according to the consumer price index," said Glenn Steinbrink, the
city's finance director.
For fiscal year 2008-09, which begins July 1, the payment will be
$320,000, which Steinbrink said the air****t will be unable to make.
"If the air****t weren't there and there was some other use, the city
could bring in property taxes and other taxes such as retail sales tax
or hotel-transient occupancy tax," Steinbrink said.
=2E..
Part of the financial problems erupted when a hangar construction
project fell two years behind, and costs increased more than expected,
Steinbrink said.
In 2005, a $6.2 million, 15-year loan was secured at a 4.15 percent
interest rate. Payments were set at $569,000 annually.
Air****t director Rod" Propst figures that the loss in rent from most
of the 149 new hangars over the two-year period amounted to
approximately $240,000. The project was completed in March."
IMHO, the traffic can be split between ONT, SNA and the gov. site at
Los Alamitos.
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