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Presented to: By: Date: Federal Aviation Administration Federal Aviation Administration Airports Division Financial Programs Yampa Valley Reg. Airports.

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Presentation on theme: "Presented to: By: Date: Federal Aviation Administration Federal Aviation Administration Airports Division Financial Programs Yampa Valley Reg. Airports."— Presentation transcript:

1 Presented to: By: Date: Federal Aviation Administration Federal Aviation Administration Airports Division Financial Programs Yampa Valley Reg. Airports Comm. Chris Schaffer, Colorado State Eng. July 14, 2011

2 2 Federal Aviation Administration Airports Financial Programs July 14, Airports Financial Programs Airport Improvement Program (AIP) –Originally authorized by the Airport and Airway Improvement Act of –Recodified in 1994 and further amended in 1996, 1999, 2000, 2001, 2002, and Passenger Facility Charge Program (PFC) –Originally authorized by the Statute (49 U.S.C. §40117). –Implemented by 14 C.F.R. Part 158 in 1991.

3 3 Federal Aviation Administration Airports Financial Programs July 14, Airport Improvement Program (AIP) Highest aviation priority of the United States is the safe and secure operation of the airport and airway system. –Broad objective to assist in the development of a nationwide system of public use airports. –Maintain existing airport infrastructure. –Increase the capacity of facilities to accommodate growing traffic demands. National Plan of Integrated Airport Systems (NPIAS).

4 4 Federal Aviation Administration Airports Financial Programs July 14, National Plan of Integrated Airport Systems (NPIAS) Identified $52B in eligible infrastructure development between 2011 and –Construction costs estimates rose approx. 5%. About 60% of the proposed development would rehabilitate existing infrastructure. –Mostly existing pavements. About 40% of the proposed development would accommodate increased capacity. –Airfield and terminal expansions etc.

5 5 Federal Aviation Administration Airports Financial Programs July 14, Typical Development Needs Runways, Taxiways, and Aprons –New construction –Rehabilitation –Lighting –Marking Terminals Roadways –Access roads –Service roads

6 6 Federal Aviation Administration Airports Financial Programs July 14, Typical Development Needs Equipment –Aircraft rescue and fire fighting equipment (ARFF) –Snow removal equipment (SRE) –Storage buildings Noise Mitigation Miscellaneous –Land acquisition –Planning –Environmental mitigation

7 7 Federal Aviation Administration Airports Financial Programs July 14, Airport and Airway Trust Fund Tax Revenue Summary for the Airport and Airway Trust Fund Aviation Component ComputationPercent Domestic Passenger Ticket Tax (Including Areas of Canada and Mexico Not More Than 225 Miles from the Continental United States) 7.5%49% Domestic Passenger Flight Segment$3 per Segment Indexed to Consumer Price Index (CPI) 20% Passenger Ticket Tax at Rural Airports (Having Less Than 100,000 Boardings and More Than 75 Miles from an Airport with 100,000 Boardings) 7.5% of Ticket Cost (Excludes Flight Segment Component) 1% International Departure and Arrival Taxes (Where Domestic Tax Does Not Apply) $12 Per Person Departure Tax Plus $12 Per Person Arrival Tax Indexed to CPI 15% Special Rule for Flights between Continental US and Alaska or Hawaii $6 Departure Tax for International Facilities Indexed to CPI, plus a Portion of the Domestic Passenger Ticket Tax Frequent Flyer Tax7.5% of Frequent Flyer Award Value2% Waybill Domestic Freight and Mail6.25% of Shipment Cost5% Commercial Fuel Tax4.3¢ Per Gallon6% General Aviation Fuel TaxAviation Gasoline ¢ Per Gallon Jet Fuel ¢ Per Gallon 2%

8 8 Federal Aviation Administration Airports Financial Programs July 14, Authorizations vs. Appropriations AIP is dependant upon two separate Congressional actions. Authorization –Gives FAA the authority to use trust fund monies and issue grants for airport development. –Sets the maximum limit of federal participation. Appropriation –Obligation limitations based on economic considerations. –Appropriations are generally less than authorized levels.

9 9 Federal Aviation Administration Airports Financial Programs July 14, Authorizations vs. Appropriations

10 10 Federal Aviation Administration Airports Financial Programs July 14, Reauthorization? Both the House and Senate have passed their respective versions of a reauthorization bill. Significant differences remain to be resolved in committee. –AIP funding levels. –Fate of the Essential Air Service (EAS) program. –Slot distribution at Washington National Airport. –Changes to air and rail labor laws.

11 11 Federal Aviation Administration Airports Financial Programs July 14, Reauthorization? FAA has not had a steady source of funding for nearly 4 years. Current legislative authority for the Airport Improvement Program expires on July 22, –20 th short term continuing resolution since the program expired in –Approximately 90% of program entitlement funds are currently available.

12 12 Federal Aviation Administration Airports Financial Programs July 14, Reauthorization? Current appropriation for the Airport Improvement Program expires on September 30, –Provides $3.515B in AIP funding. Current authorization does not provide sufficient authority for this level of appropriation. –Final authority could be lower than years past. Be prepared for additional extensions.

13 13 Federal Aviation Administration Airports Financial Programs July 14, NPIAS Airports

14 14 Federal Aviation Administration Airports Financial Programs July 14, U.S. Airport System

15 15 Federal Aviation Administration Airports Financial Programs July 14, Airport Categories

16 16 Federal Aviation Administration Airports Financial Programs July 14, AIP Distribution

17 17 Federal Aviation Administration Airports Financial Programs July 14, FAA Regions

18 18 Federal Aviation Administration Airports Financial Programs July 14, Entitlement Funds Primary Airports –Entitlements are based upon the number of passenger boardings at the airport. Minimum $1,000,000 per year. Maximum $26,000,000 per year. –Yampa Valley Regional (HDN) Approx. 110,000 enplanements (CY-10). Approx. $1,350,000 annual entitlement.

19 19 Federal Aviation Administration Airports Financial Programs July 14, Entitlement Funds Non-Primary Airports –Entitlements are calculated as a percentage (20%) of the documented capital needs for the facility. Maximum $150,000 per year. –Steamboat Springs/Bob Adams Field (SBS) $150,000 annual entitlement. –Craig/Moffat County Airport (CAG) $150,000 annual entitlement.

20 20 Federal Aviation Administration Airports Financial Programs July 14, AIP Funding History Yampa Valley Regional (HDN) –37 AIP grants. –$42,903, Steamboat Springs/Bob Adams Field (SBS) –20 AIP grants. –$9,946, Craig-Moffat County (CAG) –12 AIP grants. –$2,484,767.00

21 21 Federal Aviation Administration Airports Financial Programs July 14, Passenger Facility Charge Program (PFC) Any public agency that controls a commercial service airport, may impose a fee for each enplaned passenger at that facility. –Can choose PFC levels of either $1, $2, $3, $4, or $4.50. These revenues can be used on eligible projects at any airport controlled by the public agency. –AIP and PFC eligibility rules are generally the same.

22 22 Federal Aviation Administration Airports Financial Programs July 14, PFC Related to AIP? PFC funds are considered a special type of local airport revenue. –PFC funds can be used as the local match on an AIP project. –PFC funds can be used to supplement an AIP project. –PFC funds can be used to pay debt service and financing costs.

23 23 Federal Aviation Administration Airports Financial Programs July 14, Local Revenue Projects funded exclusively with PFC revenue are not subject to certain federal requirements. –Davis-Bacon wage rates. –Disadvantaged Business Enterprise (DBE) goals. –Buy-American requirements. –Uniform Relocation Assistance and Real Property Acquisition Policy Act requirements.

24 24 Federal Aviation Administration Airports Financial Programs July 14, PFC Objectives PFC projects must meet one or more distinct objectives: –Preserve or enhance safety, security, or capacity. –Reduce or mitigate noise impacts. –Furnish enhanced competition among air carriers. And if approved higher than the $3 level: –The project cannot be reasonably expected to be funded from AIP. –For any landside project, all airside needs must be met first.

25 25 Federal Aviation Administration Airports Financial Programs July 14, Small Airport Fund AIP entitlements at large and medium hub airports imposing a PFC are reduced and the funds returned to the AIP program. –12.5% to the AIP discretionary fund. –12.5% to small hub airports. –25% to general aviation airports. –50% to non-hub primary airports.

26 26 Federal Aviation Administration Airports Financial Programs July 14, PFC Funding History Yampa Valley Regional (HDN) –45 projects funded. –$5,386, Steamboat Springs/Bob Adams Field (SBS) –6 projects funded. –$159,575.00

27 27 Federal Aviation Administration Airports Financial Programs July 14,


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