HIGHFILL -- The Northwest Arkansas Regional Airport board's Finance Committee forwarded a 2017 budget to the full board Wednesday with a recommendation for approval.
The budget estimates $23.9 million in expenses for 2017. The amount includes $6.9 million for operations, $5.1 million for debt service and fees on bonds and $11.8 million for capital expenses.
Revenue is expected to be about $26.9 million, including just over $18 million from operational revenue.
Total projected revenues over expenses is expected to be about $3.1 million.
The finance committee recommended the board refinance the airport's $44.8 million in bond debt and approve plans to issue bonds to build a parking deck. The current debt is scheduled to be paid off in 2027.
Airport officials want to start building the parking deck after the first of the year. The board earlier this year approved plans for a 1,400 space, four-level deck with a roof. Money to pay for the deck is expected to come from $35 million worth of bonds and a possible increase in the customer facilities fee to car rental companies.
The board agreed in March to pay Nabholz Construction $1.5 million for design work and related services for the deck, which will be built in front of the terminal.
The structure is expected to house car rental companies initially. A second deck likely will be added for car rental companies in three to five years, airport officials have said.
Finance Committee members were presented with three potential financial models for paying for capital projects, including the parking deck, an access road from the new U.S. 412 Northern Bypass to the airport, the possible second parking deck and improvements to the terminal and concourses.
The committee recommended changes to an agreement with Republic Parking to increase the current maximum rate for short term parking from $16 to $24. The $16 rate will continue for 12 hours or less. After 12 hours the rate will be $24.
The move is aimed to encourage drivers not to park in the short term lot overnight.
"Half of our short-term parking is going away," said Scott VanLaningham, executive director of the airport.
Construction of a parking deck is expected to reduce short-term spaces from 491 to 274 spaces next year.
NW News on 12/08/2016