TITLE
HOLD a public hearing and consider an ordinance amending the FY 2018 Annual Budget and Plan of Municipal Services of the City of Killeen by increasing Aviation revenue and expense accounts for the Airport Improvement Program (AIP) grant.
SUMMARY
DATE: August 07, 2018
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Aviation Budget Amendment
BACKGROUND AND FINDINGS:
Each fiscal year the City of Killeen is eligible to apply for Federal Aviation Administration Airport Improvement Program grant funds for qualifying capital improvement projects at the Killeen-Fort Hood Regional Airport.
The City has been offered an Airport Improvement Program grant to be used for procurement and installation of four passenger bridges and improvements to the terminal building at the Killeen-Fort Hood Regional Airport. The total cost of the project is estimated to be $5,542,861. The cost of the project includes $5,532,861 for the agreement with the contractor that will perform the improvements and $10,000 in administrative expenses. The Airport Improvement Program grant will cover 90% or $4,988,575 of the project cost, and the remaining 10% or $554,286 will be covered by the Passenger Facility Charge (PFC) Fund.
A budget amendment is necessary to recognize the grant revenue and establish a budget for the project.
THE ALTERNATIVES CONSIDERED:
(1) Acceptance of the grant requires a budget amendment.
(2) Reject the grant and search for an alternative funding source.
(3) Do not do the project.
Which alternative is recommended? Why?
Alternative #1 is recommended as the course of action. The project is funded 90% by the grant and 10% by the Passenger Facility Charge program. The Killeen-Fort Hood Regional Airport operational fund will not cover any portion of the project’s cost.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City...
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