BY SARAH GREGORY
The rental rate structure and late fees for T-Hangars at the Greeneville/Greene County Municipal Airport will remain the same following review and action by the Airport Authority on Monday morning.
The board also held a brief budget workshop to review projected revenues and expenses for the upcoming 2013-2014 Fiscal Year.
Airport Authority members discussed the potential of offering a discount for hangar rental fees paid in advance for longer periods, such as a year.
The advantage for the airport would be having the rental funds for a year available all at once as opposed to trickling in a month at a time.
Another advantage would be the guarantee of having the space rented for a year; however, with 25 individuals actively waiting to rent T-Hangars, the airport currently has no need to pursue the change for that purpose.
Airport Authority Chairman Janet Malone expressed concern about the effect that such a discount would have on corporate leases, which are a primary source of funding in the airport's budget.
"Business-wise, it's not a good decision for us to make right now," she said, commenting on the likelihood of reduced revenue.
The rentals are, as Malone said, "a lot of what we use to pay our bills."
A motion to decline a pre-pay discount program and leave the rate structure unchanged passed unanimously.
LATE FEES REVIEWED
Airport Authority members discussed and ultimately decided against making changes to the way late fees for hangar rentals are handled.
Rental payments for hangars are due on the first of the month.
If rent is not paid by the tenth day, a $50 fee is added.
Discussion centered around the need to be consistent in the way late fees are administered.
It was pointed out that notices for rent due are sent out approximately two weeks before payments are due.
With the 10-day grace period in which a tenant may pay rent before the late fee is assessed, it makes a period of almost a month before the $50 charge is incurred.
A motion to leave the late fee structure as-is passed unanimously.
After the meeting adjourned, a brief workshop was held to discuss some preliminary information about the upcoming fiscal year budget development process.
Malone reviewed some preliminary information concerning income and expenses.
Total income is projected at $449,784, with total expenses estimated at $297,701. That leaves a total income less expenses of $242,083.
Income from T-Hangar leases is projected at $109,512, and is the largest source of revenue, except for a $110,000 security grant from the Tennessee Department of Transportation (TDOT).
That grant funding may only be used for security purposes.
Service and equipment expenses, which also account for capital improvement projects, are projected at $140,900.
Some line items in that category, such as airfield surface maintenance, building maintenance, and adverse weather clearance, include 50/50 grants with TDOT.
Administrative expenses, which include such items as accounting, legal, permitting, and utility fees, are projected to be $66,801.
Another budget workshop will be held on a later date.