By NICK BUDDHays Post

After Hays City Commissioners asked city staff to review the current funding level of the Hays Regional Airport, staff members decided that the current funding level “was not sufficient enough to complete to provide future operational and capital funding needs,” according to the memo sent out by city staff.

Commissioners discussed the current funding level at Thursday’s work session.

According to I.D. Creech, director of Public Works for the city of Hays, the city receives funding for the airport from four specific areas — the mill levy, use of land for rentals and farming, use of improvements such as the rental fee for hangers and fuel, and regulation of operations, which includes landing fees and business licenses.

The airport currently receives one mill out out of the mill levy for operations, which is equivalent to around $199,000. Creech said an increase in the amount of mills that the airport receives could be the most effective way to provide more funding for the airport.

“An increase in this particular revenue source would be the most substantial way to fund the airport because its steady and regular,” Creech said. “If you give us a quarter, half or whole entire mill, it would substantially fund the airport.”

Creech also said the city found a new funding source that could be used to fund the airport operations. The airport could charge up to $4.50 per passenger through the Federal Aviation Administration’s Passenger Facility Charge. These funds could be used for FAA approved projects such as safety, security and capacity enhancements, or improvements that would increase air carrier competition.

“The money would be collected immediately and would have to be used within two years,” Creech said. “According to SkyWest’s passenger estimates of 13,000 passengers per year, it’s an approximate revenue source of around $50,000 to $59,000  per year.”

Commissioner Ron Mellick said he favored the PFC as a revenue source.

“An increase in the mill levy will affect everybody whether they use the airport or not,” Mellick said. “The PFC is charged to the people that actually use the airport and those improvements go directly into the airport.”

A recommendation on budget enhancements will be made during the 2015 budget development.