Airport Proposes Budget With 10 Percent Increase
July 12, 2017 at 8:24 p.m.
By David [email protected]
The proposed 2018 budget is $885,338, while the 2017 budget is $795,357.
The 2018 budget includes $312,065 for salaries and wages. Airport Manager Nick King gave the aviation commissioners the option of approving four or 4.5 full-time hourly employees. The commissioners approved 4.5 employees for $175,000, which must be approved by the city council.
King said one employee might retire next year. He proposed adding half a salary, along with benefits, for 2018. “My goal is to hire someone in before this person retires. That way we can make sure they are fully trained on all operations before there’s a retirement so we don’t have any gaps in services provided.”
If the airport employee chooses not to retire in 2018, the money for the half-year position can be cut out of the budget, King said.
Aviation commissioner Gene Zale asked about the fuel incentive part of the budget, which is proposed at $28,250, up from $14,512 in 2017.
“What is the purpose of almost doubling that?” Zale asked.
“We’ve talked about changing the way we price our fuel and how we are paying our employees to give incentive,” King said. “... Currently that fuel incentive is being brought out of our revenue. And the fuel incentive is tied to the revenue of the fuel as well, so if we change our fuel price structure that we currently have, then the fuel incentive will change with that and it will be a pass-through to the customer versus the airport taking the expense.”
If the board doesn’t approve the fuel incentive or fuel pricing changes, King said that budget item will be reduced to 3 or 4 percent higher than the 2017 amount.
Board member Dan Robinson asked what the fuel incentive was.
King said employees get an incentive of 1 cent for every gallon sold during business hours and 3 cents a gallon after hours.
Employee benefits for 2018 are proposed to increase to $476,360 from $387,780 in 2017. King said he increased the insurance but hasn’t received the insurance rates for 2018 yet as they usually come in August.
“The last four years, they varied between 4 and 7 percent,” King said. “I budgeted for a 10 percent increase, and then when we receive those final figures, we’ll do a reduction based on those figures.”
Supplies will remain the same for 2018 as 2017 at $63,500. Other services and charges – such as printing and advertising – will slightly increase from $210,170 in 2017 to $213,478 in 2018.
Capital outlays are proposed to increase from $122,000 in 2017 to $132,000 in 2018.
King said, “You guys know our runways and taxiways just are requiring more and more maintenance because the pavement is aging.”
He said he is working on rehabilitating some of those pavements.
Zale asked if the board was going to run into any problems supporting almost a $90,000 budget increase from 2017.
“That all comes down to getting that fuel structure approved. If we can change the way we are pricing our fuel – we’re not talking large increases, at most we’re talking 15 to 20 cents a gallon.
“Our fuel pricing has not changed in a long time. Talking with not only Phillips 66 representatives but World Fuel Services, who is ultimately our fuel provider, and several other area airports, we are over $1 a gallon cheaper than many other places,” King said.
He said the increase would be gradual if approved. At certain times of the year, he said the Warsaw Airport’s fuel prices are $1.50 to $2 per gallon cheaper than at other airports within a 150-mile radius.
Mayor Joe Thallemer said Clerk-Treasurer Lynne Christiansen will look at cash revenues and utilize very conservative revenue figures to support the budget from fuel sales and property taxes.
The aviation commissioners unanimously approved the proposed 2018 budget.
The proposed 2018 budget is $885,338, while the 2017 budget is $795,357.
The 2018 budget includes $312,065 for salaries and wages. Airport Manager Nick King gave the aviation commissioners the option of approving four or 4.5 full-time hourly employees. The commissioners approved 4.5 employees for $175,000, which must be approved by the city council.
King said one employee might retire next year. He proposed adding half a salary, along with benefits, for 2018. “My goal is to hire someone in before this person retires. That way we can make sure they are fully trained on all operations before there’s a retirement so we don’t have any gaps in services provided.”
If the airport employee chooses not to retire in 2018, the money for the half-year position can be cut out of the budget, King said.
Aviation commissioner Gene Zale asked about the fuel incentive part of the budget, which is proposed at $28,250, up from $14,512 in 2017.
“What is the purpose of almost doubling that?” Zale asked.
“We’ve talked about changing the way we price our fuel and how we are paying our employees to give incentive,” King said. “... Currently that fuel incentive is being brought out of our revenue. And the fuel incentive is tied to the revenue of the fuel as well, so if we change our fuel price structure that we currently have, then the fuel incentive will change with that and it will be a pass-through to the customer versus the airport taking the expense.”
If the board doesn’t approve the fuel incentive or fuel pricing changes, King said that budget item will be reduced to 3 or 4 percent higher than the 2017 amount.
Board member Dan Robinson asked what the fuel incentive was.
King said employees get an incentive of 1 cent for every gallon sold during business hours and 3 cents a gallon after hours.
Employee benefits for 2018 are proposed to increase to $476,360 from $387,780 in 2017. King said he increased the insurance but hasn’t received the insurance rates for 2018 yet as they usually come in August.
“The last four years, they varied between 4 and 7 percent,” King said. “I budgeted for a 10 percent increase, and then when we receive those final figures, we’ll do a reduction based on those figures.”
Supplies will remain the same for 2018 as 2017 at $63,500. Other services and charges – such as printing and advertising – will slightly increase from $210,170 in 2017 to $213,478 in 2018.
Capital outlays are proposed to increase from $122,000 in 2017 to $132,000 in 2018.
King said, “You guys know our runways and taxiways just are requiring more and more maintenance because the pavement is aging.”
He said he is working on rehabilitating some of those pavements.
Zale asked if the board was going to run into any problems supporting almost a $90,000 budget increase from 2017.
“That all comes down to getting that fuel structure approved. If we can change the way we are pricing our fuel – we’re not talking large increases, at most we’re talking 15 to 20 cents a gallon.
“Our fuel pricing has not changed in a long time. Talking with not only Phillips 66 representatives but World Fuel Services, who is ultimately our fuel provider, and several other area airports, we are over $1 a gallon cheaper than many other places,” King said.
He said the increase would be gradual if approved. At certain times of the year, he said the Warsaw Airport’s fuel prices are $1.50 to $2 per gallon cheaper than at other airports within a 150-mile radius.
Mayor Joe Thallemer said Clerk-Treasurer Lynne Christiansen will look at cash revenues and utilize very conservative revenue figures to support the budget from fuel sales and property taxes.
The aviation commissioners unanimously approved the proposed 2018 budget.
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