TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
Jeffrey Yates, Assistant City Manager
FROM: Kimberly Leonard, CLGFO, CLGBO, CPA, MPA, Budget and Evaluation Director
Deontae K. Watson, MBA, A.A.E., Deputy Airport Director
DATE: December 9, 2024
RE:
Title
Adoption of Budget Ordinance Amendment and Special Revenue Ordinance to Appropriate Funds for an Air Service Development Incentive Program
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: Desirable Place to Live, Work and Recreate
Objective 4.1: To maintain public transportation investments with high-quality transit and airport services
Executive Summary:
In the December 4th Council work session, the Council directed staff to prepare an appropriation ordinance for $400,000 for an Air Service Development Incentive Program. The funding source for this appropriation is a transfer of accumulated interest income from the American Rescue Plan Act (ARPA) funding in the Federal and State Assistance Fund. Accordingly, Council is asked to adopt Special Revenue Ordinance (SRO) 2025-14 to transfer $400,000 of ARPA interest funds to the general fund and Budget Ordinance Amendment (BOA) 2025-10 allowing the general fund to receive and appropriate the $400,000 for an air service development incentive program at the Fayetteville Regional Airport (FAY).
Background:
Council received a presentation from Airport leadership at the December 4, 2024, work session about a new air service development incentive program that is a minimum revenue guarantee for any new air service to and from FAY. As discussed in the presentation, the Federal Aviation Administration (FAA) has an oversight of all incentives offered to airlines and specifically prohibits the use of Airport revenues for minimum revenue guarantees. Contrastingly, the FAA does permit local municipalities to use non-federal revenues to provide minimum revenue guarantees ...
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