TITLE
Consider a memorandum/resolution authorizing the submission of a Passenger Facility Charge (PFC) application to the Federal Aviation Administration.
SUMMARY
AGENDA ITEM
Passenger Facility Charge (PFC) Application
ORIGINATING DEPARTMENT
Aviation
BACKGROUND INFORMATION
14 CFR Part 158 establishes procedures which allow airport sponsors to apply for approval to impose (collect) Passenger Facility Charges (PFC) from enplaned passengers and use those revenues for specific eligible capital improvement projects. PFC revenues may then be used to fund either the full cost of eligible projects or to satisfy the sponsor’s match requirement for Airport Improvement Program grants.
DISCUSSION/CONCLUSION
The Aviation Staff began the formal process for a new PFC application on October 15, 2015, with formal notification to the airlines of the City’s intent to impose and use PFCs for projects at Killeen-Fort Hood Regional Airport / Robert Gray Army Airfield. A consultation meeting with the airlines was conducted on December 03, 2015; public notice of the City’s intent to impose and use PFCs was published in the Killeen Daily Herald and posted on the City’s web site inviting comments on the proposal on December 13, 2015. No comments were received as of the end of the comment period on January 13, 2016.
The PFC program is designed to be used on a “pay-as-you-go” basis to make payments on approved projects as the funds are collected; however, the Federal regulation controlling the program does allow the use of PFC funds to reimburse eligible costs that were previously paid from other local funds, within the limits of the specific application approval by FAA.
The proposed new charge effective date is December 1, 2016, with an estimated expiration date of April 01, 2018. The request is to collect a total of $905,000 at the rate of $4.50 per enplaned passenger.
Projects...
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