HomeMy WebLinkAbout2022 06 08 BRAA FC MinutesM I N U T E S
Barkley Regional Airport Authority
FINANCE COMMITTEE
Budget Meeting - Tuesday, 06/07/22, 3:30pm In Person and via Via Zoom Meeting Finance Committee (FC) Chairman Durbin welcomed everyone and recognized that a quorum was present. Committee Member present by Zoom was Board Chairman Jay Matheny. In person were Ashley Johnson, Jonas Neihoff, Marshall Davis and John Durbin, Chairman. Staff present was Dennis Rouleau, Executive Director (ED), Haylie O’Brien, marketing and Carol Creason, Accountant.
Review of first draft of FYE June 30, 2023 budget
Durbin presented a monthly spreadsheet of revenues and expenses for the current FYE with actual results through April and forecasted amounts for May and June 2022. The Committee briefly reviewed the revenue and expenses items and discussed some unusual items from the past year. The Committee then reviewed line by line the draft of the budgeted items for the next fiscal year discussing in particular the potential impact of Skywest flight schedule in the coming months, the impact of the bids for a new flight carrier on revenues and expenses. The core assumption will be that BRAA will have at least 12 flights per week through Skywest for the first quarter although the “tagging” with Cape is likely until a new carrier is in place. Other discussion points included:
1) Would the special COVID cleaning continue which provides revenues of about $3,000 per month and maintenance expenses of about $1,200 month and supplies expense of about $300 per month 2) Will we lease out the same amount of the surplus land for farming as in the recent crop season. 3) Potential impact of fuel flowage fees as one carrier has indicated it would not purchase fuel at Barkley but verbally agreed to pay some type of net revenue to BRAA to cover some of the lost revenue. 4) Potential loss of “landing fees” if the new carrier was a smaller aircraft. 5) Potential increase in property and casualty insurance on buildings except the current terminal in light of the tornado’s impact on Mayfield in 2021. 6) Cost for labor and labor benefits – the need to budget at least a 5% COLA plus allowing for the addition of two additional maintenance FTEs (one being a supervisor) when new terminal is open. 7) The potential of a couple month delay in the opening of the new terminal due to some supply chain issues. 8) Open position for terminal operations manager and timing of that hire. 9) What to do with old terminal and if decision is to tear down that building, when and what costs could be incurred prior to that time including “transition” costs between moving out of the old and into the new terminal. Discussed having an separate expense line item called “terminal transition costs” to cover the one-time expenses, likely budgeted for the fourth quarter. 10) Maintenance costs in general considering new terminal items should be under warranty for at least one year. 11) Marketing expense needs in light of a potential change in carrier and the opening of new terminal. 12) Air service development costs including travel. 13) Fuel/lube cost up likely 50% because of gas/diesel increases.
A list of potential capital expenditure needs was very briefly presented but little time remained to discuss in detail so Rouleau was asked to add some notes to the list about the reasoning for the major items and to send the list to the members.
Durbin will rework the first draft to reflect the discussion points and Rouleau will schedule a follow-up meeting with the committee prior to the full board meeting on June 27th with the goal of having a budget to present to the full board for approval at that meeting. Creason noted we must submit an approved budget by July 15th to the FAA.
Meeting adjourned at 5:10 pm.