TITLE
Consider a memorandum/resolution authorizing the submission of a Passenger Facility Charge (PFC) application to the Federal Aviation Administration (FAA).
SUMMARY
DATE: May 1, 2017
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: PASSENGER FACILITY CHARGE (PFC) APPLICATION
BACKGROUND AND FINDINGS:
14 CFR Part 158 establishes procedures which allow airports to apply for approval to impose (collect) Passenger Facility Charges (PFC) from enplaned passengers and use those revenues for eligible capital improvement projects. PFC revenues are then used to fund either the full cost of eligible projects or to satisfy the sponsor’s match requirement for FAA Airport Improvement Program (AIP) grants. The Killeen Fort Hood Regional Airport (KFHRA) has an existing PFC; however, the authorized impose and use amount of that application is nearing its expiration and a new application is necessary to fund required projects and continue the program.
Killeen has participated in the PFC program and has received PFC funds at Killeen Municipal Airport and, later, KFHRA continuously since 1992 and has had a collection rate of $4.50 per passenger since May 2001, shortly after the Federal regulation changed to allow that rate. This critical airport capital improvement funding program significantly contributed towards the original construction of the KFHRA and several subsequent capital improvements: the ramp and taxiways supporting commercial operations, the state-of-the-art security system, the wildlife hazard reduction equipment, and, the airport master plan.
The PFC fees are collected by the airline that sells the ticket for the leg of the flight departing from Killeen Fort Hood Regional Airport as part of the ticket charge. The airline is allowed to retain a $0.11 handling fee and then forwards a check for $4.39 per passenger directly to the airp...
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