HomeMy WebLinkAbout06-23-2021M I N U T E S of Special Meeting
Barkley Regional Airport Authority
FINANCE COMMITTEE
Meeting - Wednesday, 06/23/21, 4:00pm Via Zoom Meeting
Finance Committee (FC) Chairman Durbin welcomed everyone and recognized that a quorum was
present. Committee Members present were Marshall Davis, Chairman John Durbin, Jay Matheny and Ashley Johnson. Absent was Emerson Goodman. Staff present was Dennis Rouleau, Executive Director (ED), and Carol Creason, Accountant.
Continued Budget Discussions
Continuing the discussion started at the April 22, May 20 and June 17 meetings, Durbin and Rouleau focused on the capital expenditures list. The P&L budget was addressed but no changes recommended since the June 17th meeting. The net deficit prior to county and city support stands at $458,738. A few
more items were added to the capital expenditures recommended since the last meeting including a four passenger gas golf cart to replace the worn out electric one plus tables and chairs for the board meeting room at the Midwest Aviation building for a total of $10,000. In addition, the budget for the two snow blower attachments were upped to $22,000 to reflect a more accurate estimate of those costs. The total of the capital expenditures will be $584,500. The P&L deficit after city and county contributions of $331,466 combined would be $127,272 under this recommended budget. Adding the $584,500 for
capital items pushes the total cash flow deficit to $711,772 which will be covered by the benefit of the reimbursements of operating expenses under the first CARES Act.
Discussion was had about the second “CARES Act” (passed in December 2020) benefit of $1,006,000 for which the airport is now officially approved to begin requests for reimbursement of operating expenses
and the just released allocation expected from the third aid act (ARPA) which is expected to be $1,104,032. Dennis will explore if these dollars can be used for anything other than operating expenses, but the assumption is that only operating expenses will count. The total recommended operating cost budget for FYE 6/30/22 is $1,142,876 so that would consume all of the 2nd allocation and a portion of the 3rd. Operating revenues will cause the airport’s net cash balance to grow which allows the potential to use such balances for capital expenditure needed over the next few years outside of the new terminal
project. As Dennis noted, the runaway rehab project needed in the near future could be $15 million and if our “local” share is 10%, that is $1.5 million in resources needed for that one project alone.
Dennis mentioned that our airport is eligible for a $80,000 grant from the Homeland Security Department applied for through the City of Paducah to upgrade our camera system but that the new cameras likely
would not be installed in the next fiscal year. The Board of the airport may need to formally “accept” the grant.
Discussion concluded with the proposal from Peel and Holland on P&C and liability insurance coverage. Dennis noted our current policy does not have earthquake coverage on the Simmons building, hanger #1
or the Midwest Aviation structure. Discussions were had on the lack of “law enforcement” liability coverage and what situations could arise that could create such liability. The committee recommendation is to continue with the current Hudson coverage but to explore cost of additional earthquake and coverage for law enforcement liability subject to the underwriting requirements.
Other items and adjournment
The next full Board meeting is June 28th, and the next regular quarterly FC meeting is set for July 22nd at
3:30.
Meeting adjourned at 5:01 PM