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Falcon Field Airport Update
Corinne Nystrom, A.A.E.
Airport Director
March 5, 2026
Falcon Field Airport Purpose Statement
Falcon Field Airport exists to:
• Operate a safe, reliable and well-maintained airfield
• Provide customer-centered aviation
• Foster positive community relationships
• Drive a sustainable aviation ecosystem, fuel capital investment, and
expand premiere workforce opportunities
• Realize the City’s vision of a safe, fiscally responsible, quality development
and thriving community of jobs and prosperity.
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Primary Sources of Airport Revenue
Primary Sources of Airport Revenue - Current (Non-Grant)
• Ground Lease Rent
• City-Owned Hangar, Tiedown, Storage Room Rent
• Fuel Flowage Fees
• City-Owned Itinerant Aircraft Tiedowns
• Rental Car Concession Fees
• Miscellaneous: Gate Access Cards, Ground Lease Transaction Fees,
Hangar/Tiedown Transfer Fees
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The Need to Be Financially Self-Sustaining
• FAA Grant Assurance #24 – Maintain a fee & rental structure
for facilities & services which will make the airport as self-sustaining as
possible
• Since 2006, Airport Enterprise Fund has had a balanced budget due to:
- One-time $4.6 million net proceeds from sale of land in 2006
- Revenues collected from tenants and users
- Conservative budgeting and spending practices
- Deferred capital improvement projects
- Deferred maintenance on airfield pavement & City-owned facilities
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Falcon Field’s Current Financial Picture
Looking forward, the Airport Enterprise Fund is not financially
sustainable due to:
- General inflation
- Beginning in 2020, capital improvement costs began increasing
substantially and continue to increase
Result:
- Paying more and getting less
- Gradually falling behind on required maintenance & repair, including
airfield pavement & City-owned facilities maintenance
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Echo Ramp – February 2026
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Actions Already Taken to Address the Approaching
Shortfall
• Cut back on non-grant capital improvement projects
• Taking the “Band-Aid Approach” to maintain pavements – we repair
the pavement in the worst condition with what money we have to
work with
• Eventually complete re-construction of pavements will be needed if
Pavement Condition Index (PCI) falls below 50
• Estimated cost for on-going pavement maintenance is $5.75
million/year ($46 million over next 8 years) to bring all airport
pavements to the FAA’s recommended 70 PCI.
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Can Federal & State Grants Be Used to Cover Costs?
• FAA & State grants help with some of the capital improvements and
pavement reconstruction, but the FAA will not pay for ongoing pavement
maintenance (i.e. crack fill/seal coat)
• State has some funds available for pavement maintenance, but they
determine which airports get these funds, when, and the area of
pavement for which funds will be spent (usually runways/taxiways)
• Several necessary Airport capital improvements rank too low on the FAA’s
and ADOT’s lists to receive funding, such as pavement reconstruction in
the City-owned hangar areas
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Cost Center Analysis Timeline
• In 2024, conversations began to convert to the Cost Center Approach
- City-Owned Hangars/Tiedowns
- Airfield
- Ground Leases
• Each Cost Center should be financially self-sustaining
• August 2025 – City-Owned Hangars/Tiedowns – 8% rent increase
approved
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Proposed Fee Increase
City-Owned Hangars
- Ongoing pavement maintenance costs
- Complete cane bolt installation on all hangars – 3 more years
- Place funds in capital reserve to re-paint the hangars to extend
their lives – approximately $ 2 million
- Recommendation: 10% rental rate increase
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Proposed Fee Increase
City-Owned Tiedowns
- Currently charging 55% of what is needed to be financially self-
sustaining
Recommendation:
- 23% rental rate increase for open tiedowns
- 11% rental rate increase for covered tiedowns
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Airfield Cost Center
• Airfield Cost Center
- Pavement maintenance (runways/taxiways, non-exclusive ramps)
- Airfield lighting
- Aircraft landing aids (PAPIs/REILS)
- Safety areas
- Utilities
- Perimeter fence/gates
- Aircraft rescue firefighting services
- Terminal building/Airport maintenance facility
- Airport personnel
- Airfield equipment
- Airport’s portion of FAA & State grant projects
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Airfield Cost Center Costs
• Estimated FY2025-26 Airfield Cost Center Cost: $2,410,432
• Estimated FY2025-26 Airfield Cost Center Revenues: $374,300
• Airfield Cost Center Without Landing Fees
- Estimated Shortfall: $2,036,132
• Recommendation:
- Increase avgas fuel flowage fee from $.14 to $.15 per gallon
- Landing fees
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• Methodology Used:
1) Determined amount of revenue needed to make the Airfield Cost
Center financially self-sustaining
2) FAA requires that fees must be reasonable and not unjustly
discriminatory
- General aviation landing fees charged at other airports
3) Account for 10% reduction in aircraft landings (some customers may
choose to use other airports)
Landing Fee Methodology
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• Based Fixed Wing Aircraft
≤ 6,000 lbs. MLW
$20.35
> 6,000 lbs. MLW
$3.40/1,000 lbs.
• Itinerant Fixed Wing Aircraft
≤ 6,000 lbs. MLW
$24.35
>6,000 lbs. MLW
$4.10/1,000 lbs.
• Based Rotorcraft, Drones, & eVTOL
$12.60
• Itinerant Rotorcraft, Drones, & eVTOL
$17.60
Proposed Landing Fees
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• Based aircraft – first 10 landings per month
• Rotorcraft, drones, eVTOL landing on exclusive use ramps
• Declared emergency landings (FAA Alert I, II, or III)
• All but one rotorcraft landing during continuous training & testing session in fixed
location or while moving in the training/testing traffic pattern or while moving
between training/testing ramp and a private ramp
• Aircraft owned by government agencies (federal, state, local, political
subdivisions, federally-approved foreign governments)
Proposed Landing Fee Exemptions
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• Aircraft under contract for sale to a government agency (certain restrictions
apply)
• Aircraft owned by based tenants as part of production flight testing prior to
delivery to end-use customer
• Flights conducted in support of government functions (public safety, search &
rescue, disaster response, infrastructure protection, & emergency operations)
• Special events sponsored by the City of Mesa
• Flights for medical purposes (transporting patients, blood, or organs) & animal
rescue purposes
Proposed Landing Fee Exemptions
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Financial Forecast If Fees Remain the Same
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Financial Forecast If Landing Fees & Other Fee
Adjustments are Approved
Total Fiscal Impact = $2,894,770
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Next Steps
• City Council to consider proposed Fees and Charges
amendments on March 23, 2026
• If approved by City Council, the Fees and Charges will be
effective May 1, 2026
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Thank you
Questions?
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