"Tucson, Ariz., Airport Authority Approves $39.2 Million Budget"

Wednesday, September 3, 2003

Tucson, Ariz., Airport Authority Approves $39.2 Million Budget
The Arizona Daily Star


The Tucson Airport Authority board approved a $39.2 million operating budget
on Tuesday for the fiscal year starting Oct. 1, up $200,000 from the current
annual budget.

Higher personnel costs -- mainly increased pension-fund and health-insurance
expenses -- are the major factors expected to drive up operating expenses a
projected 4.2 percent, board member Michael J. Harris, chairman of the
budget council, told the board.

Higher costs for utilities and business insurance also are expected to boost
overall expenses, projected at $25.7 million.

Operating revenues are expected to rise 3.3 percent, to $34.5 million,
mainly because of higher receipts from car rentals, parking and gift shops.

Not reflected in the total revenues are $4.7 million in projected "passenger
facility charges" the airport collects on each plane ticket.

The airport also plans to spend $9.8 million from federal and state grants
on capital projects in the next fiscal year.

The airport authority projects net operating income of $8.9 million in
fiscal 2004, down 3.7 percent from 2003.

The coming year's capital improvements center mainly on runway and taxiway
upgrades.

In other action:

-- The board authorized a capital outlay of $1.3 million for initial work on
a new maintenance building and improvements to general-aviation services.
The total cost for the related projects is budgeted at $9.8 million,
contingent on approval.

"What we have now is wholly inadequate," Airport Authority President and CEO
Bonnie Allin said of the current maintenance center. "We have not put any
money into these facilities for 15 years."

-- The budget committee will study parking rates to determine if they need
to be raised.

Harris said current rates are competitive with other airports but higher
short-term parking rates could encourage more people to use long-term
parking.

Current rates are $1.25 per hour for both short-term and long-term parking,
$12 a day for short-term parking and $6 a day for long-term parking. The
Park 'N Save lot a shuttle ride away from the terminal costs $4 daily.

-- The board approved a five-year use agreement with the Arizona Air
National Guard for $420,000 for the first year and increasing 3 percent
annually.

The Air Guard facility is the largest training base in the country,
employing up to 1,000 people with 75 F-16 fighter jets.


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