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County considers establishing an airport authority
Months of fundraising for the local match portion of a $3.9 million runway project have taught the members of the Putnam County Board of Airport Commissioners a few things.
Chief among these lessons: A little more autonomy and flexibility might be nice.
With only $78,000 of the $298,000 matching portion remaining to be raised, the end is in sight on the fundraising front, but a longer term solution to funding is needed for possible future projects.
Out of this realization, the BOAC recently approached the Putnam County Council with a proposal to transition from a BOAC to an airport authority.
The proposal was discussed publicly at the September county council meeting on Tuesday.
The biggest difference between the two models for managing the airport is the level of independence from the county.
The BOAC is considered a department of Putnam County. As such, funding for the airport is drawn from the county general fund.
An airport authority, on the other hand, operates outside of the county budget. The county council still reviews the annual budget of an airport authority, and the entire board is appointed by the county commissioners.
Beyond this, the board operates as its own government entity.
The source of the airport's money would be a separate tax levy outside of county general, like the Putnam County Public Library.
By Indiana Code, an airport authority may have a tax rate of up to 3.3 cents per $100 of assessed valuation. However, the approved rate from the state would likely be less.
Councilmen emphasized at Thursday's meeting that these additional property taxes would not necessarily be entirely new burdens on property owners. While more tax dollars will be flowing to the airport, a portion of those funds would simply be replacing what formerly came from the county's coffers.
If passed by the Putnam County Council, a resolution on the agenda for the October meeting would establish the Putnam County Airport Authority, effective Jan. 1, 2014.
While councilmen had questions about some of the particulars of transitioning from a BOAC to an airport authority, their comments were generally favorable.
"My perception is this provides much more certainty for the airport," Councilman Phil Gick said.
"And it's just maturation," Councilman Dave Fuhrman added. "This is a more business-like approach."
Present with the BOAC members and other airport representatives where BOAC attorney Eddie Felling and outside attorney Don Tribbett of Logansport.
Tribbett has overseen transitions to airport authorities.
Tribbett said 2014 would be a transitional year in which the airport authority technically exists, but has not yet had a tax draw. This would mean the budget still coming from the general fund.
He also explained the tax rate of the airport authority further, saying that while there is a maximum of 3.3 cents allowed, rates of recently-approved airport authorities have been between 2.5 and 2.8 cents per $100.
The collection of more taxes would mean not only a larger operating budget for the airport annually, it would also give board members a chance to set some money aside for future projects and matching grants such as the recently-approved FAA grant for the runway.
As to who would serve on the board, an airport authority may have a four- or five-member board, and the BOAC is requesting five for the sake of majority votes.
While it would be up to the commissioners to choose the five-member board, all five current BOAC members -- J.R. Scott, Rex Eaton, Perry Wainman, Duane Skoog and Vern Bothwell Jr. -- said they would be interested in serving on a newly-formed airport authority board.
To take more time to think about the move and to allow for public input, the council will wait until its Tuesday, Oct. 15 meeting to vote on the establishment of the airport authority.
Additionally, a 30-day remonstrance period will follow the meeting date should the resolution pass.