Revenue Diversion: Constant Vigilance
|On April 17, 2015 the following reminder was provided to Members and Participants of the Continuing Florida Aviation System Planning Process (CFASPP). CFASPP was established by the Federal Aviation Administration (FAA) and the Florida Department of Transportation (FDOT). The references cited in the last paragraph of Mr. Halley’s memo are extensive and a copy of the memo has been posted to the VASI Website veniceaviationsociety.com).|
CFASPP Members and Participants,
As the State’s new fiscal year is rapidly approaching, questions typically come up regarding the use of revenues and what is considered permitted versus prohibited revenue use. The purpose of this is email is to provide a friendly reminder regarding the permitted and prohibited uses of airport revenues and its application to both federally and State obligated airports.
Airport revenue is generally defined as those revenues paid to or due to the airport for the use of airport property by the aeronautical and nonaeronautical users of the airport. It also includes revenues from the sale of airport property and resources and revenues from state and local taxes on aviation fuel. Such examples include:
– Revenues generated from the sale or lease of land or equipment;
– Aviation fuel taxes and flowage fees;
– Access, landing, tie-down, and operating fees; and
– Revenues generated through ground transportation access fees, concessions, and airport parking lots.
Unlawful revenue diversion is the use of airport revenues for purposes other than airport capital or operating costs or the costs of other facilities owned or operated by the sponsor and directly and substantially related to air transportation. The following examples are generally considered diversions of airport revenues and are not permitted:
– The use of airport revenues for general (not airport-specific) economic development;
– In lieu of taxes or other assessments for services in an amount that exceeds the actual value of those services;
– Direct or indirect payments for services provided to the airport greater than that which is required to be paid;
– Compensatory payments to governmental bodies for lost tax revenues that exceed stated tax rates; and
– Marketing or promotional activities that are not related to the airport or system of airports.
FDOT’s Aviation Program Assurance #9 and FAA’s Sponsor Grant Assurance #25 specifically address the use of airport revenues. Those also tie directly to FDOT Aviation Program Assurance #10 and FAA Sponsor Grant Assurance #24 which discuss the requirement for the airport to be as self-sustaining as possible. Both assurances are attached for your reference. Also attached are FDOT’s Airport Revenue Diversion FAQs which provides useful information on the use of airport revenues and the FAA’s Airport Revenue Use Policy. If you have any questions or comments you may contact me, your FDOT District Aviation Coordinator, or your FAA ADO Program Manager.
Jim Halley, A.A.E., ACE
Aviation System Manager
FDOT Aviation and Spaceports Office
605 Suwannee Street, MS 46
Tallahassee, FL 32399
Main: (850) 414-4500