8.4 Airport Authority Mill LevyCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
8/21/2006 4:00 P.M.
APPROVED FOR
AGENDA SECTION ORIGINATING DEPARTMENT:
NO: 8 AGENDA:
FINANCE DEPARTMENT
ITEM
NO. 4
BY:
BY: Rod Franz
Page 1
ITEM:Resolution No. 06-6301
Consenting to the levy of 2.877 mills in the year 2006 for use by the Salina Airport Authority in the
year 2007 for the purpose of making airfield capital improvements and G.O. Bond debt service at the
Salina Municipal Airport and Salina Airport Industrial Center.
BACKGROUND:
The Salina Airport Authority (S.A.A.) was created by the City of Salina in 1965 under Kansas State
Law (K.S.A. 27-315 et seq.).The Authority was created for t he purpose of the community’s
acceptance and management of the surplus property portions of the former Schilling Air Force Base.
The statutes designate the Authority as a political subdivision, a municipal (public) corporation, and a
“tax supported institution” with certain very broad powers in their general and financial planning and
management necessary to carry out their mission and assigned functions. There are a few specific
areas in which the governing body of the City (City Commission) retains some oversight. These
areas include board appointments, mill levy, general obligation bonds and condemnation of property.
Consistent with state law, the financing of the Authority is from three primary sources: revenues from
airport operations (fuel flowage fees, landing fees); rents, rates, fees and charges from other property
and facilities; and a property tax levy.
Necessary major capital improvement projects are financed through o perating revenues when
available, grants or bond financing.
The mill levy of the Airport authority is one of the areas in which the City Commission retains some
oversight. K.S.A. 27-322(a) requi res City Commission c onsent for the Airport Authority to use its
general mill levy authorization. In addition, when the City approves a General Obligation (G.O.) Bond
issue, it is also approving the use of a mill levy for debt service.
For the 2006 tax year (2007 Budget) t he Authority is requesting the approval of a mill levy totaling
2.941 mills, representing a decrease of .064 mills. The full amount of the requested levy is to provide
for principal and interest payments on G.O. Bonds previously approved by the City Commission.
The Airport Authority has provided the attached Board Resolution, approved July 19, 2006. They will
have representatives at Monday’s meeting to address any questions you may have.
RECOMMENDED ACTION
Consider Resolution Number 06-6301.