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{00587177.1}
Fees and Charges Report
Date:
March 5, 2026
To:
Audit, Finance, and Enterprise Committee
Through:
Brent Stoddard, Assistant City Manager
From:
Corinne Nystrom, A.A.E., Airport Director
Sara Mercado, Fiscal Analyst
Subject:
Falcon Field Airport Department Update to Schedule of Fees and
Charges
Purpose and Recommendation
Falcon Field Airport (Airport) is one of the most vibrant and active general aviation
airports in the United States and is a major economic hub for the City of Mesa. In
addition to being home to 140 businesses that employ approximately 1,100 people,
the City owns and rents 411 aircraft storage hangars, over 400 aircraft storage
tiedowns, and over 70 aeronautical storage rooms. The City’s goal is to ensure that
Falcon Field Airport continues to be a valuable, financially self-sustaining community
asset.
For several years, Falcon Field Airport has been able to have a balanced budget due
to a one-time sale (in 2006) of Airport-owned land, located at Thomas and Recker
Road, and by deferring maintenance and capital improvements. The sale of this
Airport-owned land generated over $4.6 million in revenue that was applied towards
the Airport’s Enterprise Fund. For the past 20 years, the Airport has used the annual
revenue generated and the proceeds from the land sale for capital and operating costs
of the Airport, including to help maintain and improve the airport infrastructure and
facilities. However, the one-time funds generated from the land sale will be exhausted
within the next 1-2 years, and additional airport revenue must be generated to keep
the Airport financially self-sustaining.
The last fees and charges adjustment for Falcon Field Airport became effective August
1, 2025. The Falcon Field Airport Department is proposing additional modifications to
Falcon Field Airport’s Schedule of Fees and Charges. If the proposed changes are
approved by City Council, the fees and charges will be effective May 1, 2026.
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Background
Although the Airport is eligible to receive federal and state grant funds for essential
airfield capital improvements, it must rely on the revenues that are collected from
airport tenants and users to pay for all ongoing maintenance, repair, and operations
expenses, as well as its local share for grant-funded projects and all non-grant-funded
airport capital improvement projects. In FY 2024/25, the Airport generated $5.6 million
in revenue. The Airport generates operating revenue from several sources. The two
(2) largest revenue sources are rents collected on long-term ground leases and rents
collected on the City-owned aircraft storage hangars, tiedowns, and storage rooms. In
FY 2024/25, annual operating and capital improvement project costs were
approximately $5.1 million. While $500,000 in net revenue is positive, it is not sufficient
to pay for all the deferred maintenance and essential capital improvement projects that
the Airport must complete over the next 5-10 years.
Discussion
The City must comply with Federal Aviation Administration laws, rules, regulations, and
Grant Assurances which, among other things, require the airport to be as financially
self-sustaining as possible. Historically, the City-owned hangar, tiedown, and storage
room rental rates have been based solely on a market comparison with other general
aviation airports in the Phoenix area. This comparison includes airports that receive
supplemental funds from their municipalities.
Over the past few years, inflation has outpaced the annual rate increases City Council
previously approved and implemented for Falcon Field Airport. Consequently,
maintenance on City-owned Airport buildings and airfield pavement has been deferred
due to inadequate funding levels.
In 2024, the City established three (3) Airport Cost Centers...Hangar/Tiedown, Airfield,
and Ground Leases, and each Cost Center will be financially self-sustaining. The
Hangar/Tiedown Cost Center was analyzed first. It includes the costs to maintain,
repair, and improve the City-owned hangars, tiedowns, storage rooms, and pavement
located on or near these facilities that is used primarily by the tenants who rent them.
After researching the annual operating and maintenance costs for this Cost Center,
the data showed that the current rental rates for the hangars and storage rooms only
covered the costs of operating and maintaining the buildings themselves. The rental
rates did not generate enough revenue to maintain the aircraft pavement between the
rows of hangars that aircraft use to access the non-exclusive taxiways and runways.
In addition, the rental rates did not cover the cost of re-painting the hangar/storage
room exteriors to extend the buildings’ lives, which will cost approximately $2 million.
In 2025, the Airport team researched the annual operating and maintenance costs for
the City-owned tiedowns. The data showed that the current rental rates for the
tiedowns are insufficient to maintain and manage the tiedowns and maintain the aircraft
pavement where the tiedowns are located.
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While the rental rate increase of 8% for City-owned hangars, tiedowns and storage
rooms that was previously approved by City Council and became effective August 1,
2025 has helped reduce the deficit, this Cost Center is still not financially self-
sustaining.
Also in 2025, the Airport evaluated the Airfield Cost Center. This Cost Center includes
the non-exclusive portions of the airfield, including runways, taxiways, taxi lanes,
airfield lighting, safety areas, landing aids, non-exclusive ramp areas, airfield utilities,
perimeter fences and gates, aircraft rescue firefighting services, airfield equipment, the
Airport’s portion of FAA and State grant projects, the terminal building, and the Airport
maintenance facility. The only major revenue sources dedicated to operating the
Airfield Cost Center are the fuel flowage fees collected on aircraft fuel delivered to the
airport for sale and rental car concession fees. The estimated FY 2025/26 amount to
be collected from these and other miscellaneous revenue sources is $374,300.
However, the FY 2025/26 estimated cost to operate, maintain and improve
infrastructure in the Airfield Cost Center is $2,410,432. This results in a shortfall of
$2,036,132.
Airfield pavement must be regularly maintained in order to retain a pavement condition
index (PCI) that makes it possible for aircraft to use it. According to the Federal Aviation
Administration (FAA), the ideal PCI is 70 or more. While some of the airport’s
pavement falls within this 70+ PCI range, other areas of pavement fall below this. The
current PCI average is 58%. Failure to maintain these pavements will result in further
deterioration and ultimately require the pavement to be completely removed and re-
constructed. The cost to re-construct these sections of pavement is substantially
greater than the cost to perform ongoing maintenance to keep it at an acceptable PCI
level. The cost to maintain all pavement attributed to both the Hangar/Tiedown Cost
Center and Airfield Cost Center at a PCI 70 level over the next 8 years is approximately
$46 million, or an average of $5.75 million per year. This yearly amount of $5.75 million
exceeds the entire estimated FY 2025/26 Airport Enterprise Fund Ending Fund
Balance of $3.3 million by over $2.45 million.
Moving forward, in order to make each Cost Center financially self-sustaining, it is
recommended that: 1) hangar, tiedown and storage room rental rates continue to be
increased until the Hangar/Tiedown Cost Center becomes financially self-sustaining,
including covering the cost for all the ongoing pavement maintenance that is needed;
2) landing fees be charged to help cover the costs of maintaining, repairing, and
improving the infrastructure in the Airfield Cost Center, including covering the cost for
the ongoing pavement maintenance that is needed.
To comply with FAA Grant Assurance No. 22 – Economic Nondiscrimination, the
proposed landing fee would be charged on all aircraft that land at Falcon Field,
including aircraft that are not based at the airport. Grant Assurance No. 22 requires the
airport to be available to the public on reasonable terms and without unjust
discrimination to all types, kinds and classes of aeronautical activities. This includes
charging reasonable fees that are not unjustly discriminatory against any specific type
of user.
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The proposed landing fee rate methodology is based on three factors: 1) the amount
of revenue needed to make the Airfield Cost Center financially self-sustaining; 2) a rate
that is reasonable and not unjustly discriminatory. To accomplish this, the Airport
conducted a survey of airports across the United States that charge general aviation
landing fees; 3) an adjustment to account for a potential reduction in aircraft operations
if current airport customers choose to utilize other airports instead of Falcon Field once
the landing fee is imposed. The landing fees for aircraft weighing more than 6,000 lbs.
are based on the maximum landing weight (MLW) of an aircraft, as determined by the
aircraft manufacturer and certified by aviation regulatory authorities such as the FAA.
Another new proposed fee is for a Terminal Advertising Board Display. While this fee
will not generate a lot of revenue, it will make good use of an existing display monitor
in the Airport terminal building lobby that airport tenants can rent on a monthly basis to
advertise their aviation services.
The following fee adjustments and additions are recommended:
City-Owned Hangars and Storage Rooms
1) Increase City-owned hangar rent by 10%.
2) Increase City-owned small storage room rent by 30%.
3) Increase City-owned large storage room rent by 10%.
4) Increase City-owned hangar and storage room Security Deposit by amounts
equivalent to 2 months of rent for each type of hangar and storage room.
City-Owned Tiedowns
5) Increase City-owned open tiedown fees by 23%.
6) Increase City-owned covered tiedown fees by 11%.
7) Increase City-owned tiedown Security Deposit by amounts equivalent to 2
months of rent for each type of tiedown.
8) Increase City-owned tiedown Transfer Fee to $100 per transfer.
9) Adjust Open Tiedown Facility Application Fee to $100 per tiedown.
Fuel Flowage Fee
10) Increase 100LL Avgas and Alternative Fuel Flowage Fee to $0.15 per gallon
Landing Fee (NEW)
11) Fixed Wing Aircraft that are based at Falcon Field:
≤6,000 lbs. MLW
>6,000 lbs. MLW
$ 20.35 per landing
$ 3.40 per 1,000 lbs.
.
12) Fixed Wing Aircraft that are not based at Falcon Field (i.e., itinerant aircraft):
$ 24.35 per landing
$ 4.10 per 1,000 lbs.
≤6,000 lbs. MLW
>6,000 lbs. MLW
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13) Based Rotorcraft, Drones & eVTOLs
$12.60 per landing
14) Itinerant Rotorcraft, Drones & eVTOLs $17.60 per landing
Proposed landing fee exemptions would include:
-
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 a continuous training & testing session
in a fixed location or while moving in the training/testing traffic pattern or
while moving between the training/testing ramp and a private ramp
-
Aircraft owned by government agencies (federal, state, local, political
subdivisions, federally-approved foreign governments)
-
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 and flights for medical
purposes (transporting patients, blood, or organs) & animal rescue purposes
Terminal Advertising Board Display (NEW)
15) $100 per month
Document Transfer Fee
16) Increase the fee to $500.00 per transaction to help cover the administrative
costs of preparing and executing ground lease assignments, amendments,
license agreements, estoppel certificates, and terminations that tenants
request, as well as reviewing and approving other ground lease documents,
such as plats and association Covenants, Conditions, and Restrictions.
Alternative
The alternative would be to leave the current fees in place and make no
adjustments. If this occurs, the Airport will be unable to remain financially self-
sustaining in the long-term unless: 1) funds from the City General Fund are
transferred to pay for essential airport projects; or 2) essential airport projects, such
as maintaining the airfield pavement in a high-quality condition and preventive
maintenance of City-owned facilities to extend their life, are deferred. None of these
projects are eligible for federal or state grant funding.
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Fiscal Impact
The estimated annual fiscal impact of these proposed fee adjustments is $2,894,770.
Coordinated With
The Airport coordinated with City Engineering and Finance to gather data to
estimate the annual cost of maintaining, repairing, operating, and improving the
City-owned hangars, tiedowns, and storage rooms (Hangar/Tiedown Cost Center),
as well as the cost of maintaining, repairing, operating, and improving the
infrastructure included in the Airfield Cost Center.
In addition:
1) The City sought and received input from a Key Stakeholder Group which
included representatives of general aviation/recreational pilots, airport
businesses, corporate aircraft owners/off-airport businesses, flight training
schools, and area residents.
2) Between December 9, 2025 and March 3, 2025, the Airport held fifteen (15)
virtual informational and consultation meetings with aeronautical users and
airport tenants.
3) City and Airport staff met with representatives of the FAA Airports Division to
discuss the proposed fees and charges adjustments.
Finally, the Airport worked with the Office of Management and Budget in gathering data
and preparing documents to be presented to the Audit, Finance, and Enterprise
Committee and City Council regarding the proposed fee adjustments.
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Fees & Charges Schedule – Key
Heading Configuration
Schedule of Fees &
Charges
Department
Contact Information
HEADING 1
HEADING 2
Heading 3
Description of Fee
Description of Fee 2
Font Indications
Font
Font Indications
Regular Font
Existing fee or language
Strikethrough
Fee or language will be deleted
from the Fee Schedule
BOLD CAPS
Language is being added to Fee
Schedule
Bold
New or increased Fee Amount
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{00595501.1}
4935-4203-6875
4916-2390-1330
Schedule of Fees & Charges
Exhibit A – Landing Fee
Department: Falcon Field Airport
Description of Service
Current Fee
Range
Proposed
Fee
Range
Unit
Total Fiscal
Impact
Notes
LANDING FEES1, 2, 3
BASED FIXED WING AIRCRAFT
≤ 6,000 LBS. MLW
$20.35
PER
LANDING
$1,249,882
MLW stands for maximum
landing weight. New language &
fees.
BASED FIXED WING AIRCRAFT
> 6,000 LBS. MLW
$3.40
PER 1,000
LBS.
$0 New language & fees.
ITINERANT FIXED WING
AIRCRAFT ≤ 6,000 LBS. MLW
$24.35
PER
LANDING
$1,285,542 New language & fees.
ITINERANT FIXED WING
AIRCRAFT > 6,000 LBS. MLW
$4.10
PER 1,000
LBS.
$41,329 New language & fees.
BASED ROTORCRAFT, DRONES
AND EVTOL
$12.60
PER
LANDING
$37,948 New language & fees.
ITINERANT ROTORCRAFT,
DRONES AND EVTOL
$17.60
PER
LANDING
$23,043 New language & fees.
Estimated Total Annual Fiscal Impact: $2,637,744.00
1 Adjustments to Landing Fees. The adopted landing fees were based on an estimated reduction of aircraft operations of ten percent. If the average
number of aircraft operations at Falcon Field decreases by twenty percent or more from the year-over-year numbers by month (i.e., a reduction that is 10%
or more from the expected 10% reduction) for three consecutive months, then the City Manager or designee, in City Manager’s or designee’s discretion,
not more than once and within eighteen months after initial adoption of landing fees, may increase landing fees by an amount equal to the average
percentage decrease for the three months in the amount that is greater than 10%. The increase is to fund full recovery of Airfield Cost Center costs and
shall not exceed the amounts noticed in the Notice of Proposed Fees – Falcon Field Airport Fees posted on December 10, 2025 at mesaaaz.gov. By way
of example, if the aircraft operations are reduced for three consecutive months by an average of twenty-one percent, the City Manager or designee may
increase the landing fees by 11%. Prior to any such increase in fees, the City Manager or designee shall provide a sixty-day notice of the increase in fees
8
{00595501.1}
4935-4203-6875
4916-2390-1330
before they go into effect.
2 Landing Fee Exemptions. The following are exempt from landing fees:
a. The first ten landings each month by an aircraft based at Falcon Field.
b. Rotorcraft, drones and eVTOL landing on exclusive use ramps.
c. Emergency landings in which a Federal Aviation Administration (FAA) Alert I, II, or III is declared.
d. All but one of the landings performed in a continuous session for training and testing purposes during which a rotorcraft is: hovering and landing
in a fixed location; moving in the rotorcraft training/testing traffic pattern; moving back and forth between the Echo ramp and a private ramp; or
performing any combination of the foregoing.
e. Aircraft (including rotorcraft, eVTOL, and drones) owned by federal, state, local government and government agencies, political subdivisions of the
state, and federally approved foreign governments (“Government Agency”).
f.
Aircraft (including rotorcraft, eVTOL, and drones) under contract for sale to a Government Agency through a Department of Defense process or
with the oversight of the Defense Contract Management Agency, or to a foreign government under a Direct Commercial Sales contract, when
operating in furtherance of such United States or foreign government contract.
g. Aircraft (including rotorcraft eVTOL, and drones) owned by based tenants landing at Falcon Field as part of production flight testing prior to delivery
to an end-use customer.
h. Flights conducted in support of government functions, including public safety, search and rescue, disaster response, infrastructure protection, and
emergency operations.
i.
Special events sponsored by the City of Mesa and flights for medical purposes (transporting patients, blood, or organs) and animal rescue
purposes. Does not include flights intended to promote, market, or increase interest or education in aviation.
3 Policies and Procedures for Implementation. The City Manager or designee, in City Manager’s or designee’s discretion, may adopt policies and
procedures, including definitions, as needed for the implementation and administration of the landing fees in a commercially reasonable manner similar to
other comparable general aviation airports.
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Schedule of Fees & Charges
Exhibit B – Falcon Field
Department: Falcon Field Airport
Description of Service
Current Fee
Range
Proposed
Fee Range
Unit
Total Fiscal
Impact
Notes
Tie Downs
Small Single Engine Aircraft
Delete, consolidating language.
Small Twin Engine Aircraft
Delete, consolidating language.
Large Propeller Aircraft (>
12,500 lbs. MCTW)
Delete, consolidating language.
Jet Aircraft
Delete, consolidating language.
Helicopter
Delete, consolidating language.
OPEN TIE DOWN
$55.00
$68.00
Month
$17,791.00 New Language. Increased fee.
Covered Tie Down
$151.00
$168.00
Month
$23,868.00 Increased fee.
Tie Down Transfer Fee
$50.00
$100.00
Per Transfer
$50.00 Increased fee.
TIE DOWN SECURITY
DEPOSIT (MAY BE
REFUNDABLE; COLLECTED
AT SIGNING OF AGREEMENT)
New Language.
OPEN TIE DOWN
$136.00
TIE DOWN
$136.00 New Language. New fee.
COVERED TIE DOWN
$336.00
TIE DOWN
$336.00 New Language. New fee.
HANGARS
Regular T-Hangar
$308.00
$339.00
Month
$135,036.00 Increased fee.
Large T-Hangar
$465.00
$512.00
Month
$21,996.00 Increased fee.
Small Executive Hangar
$724.00
$796.00
Month
$5,184.00 Increased fee.
Large Executive Hangar
$1,464.00
$1,610.00
Month
$5,256.00 Increased fee.
HANGAR SECURITY DEPOSIT
(MAY BE REFUNDABLE;
COLLECTED AT SIGNING OF
AGREEMENT)
New Language.
10
Description of Service
Current Fee
Range
Proposed
Fee Range
Unit
Total Fiscal
Impact
Notes
Regular T-Hangar
$300.00
$678.00
Hangar
$378.00 Increased fee.
Large T-Hangar
$350.00
$1,024.00
Hangar
$674.00 Increased fee.
Small Executive Hangar
$400.00
$1,592.00
Hangar
$0.00 Increased fee.
Large Executive Hangar
$450.00
$3,220.00
Hangar
$0.00 Increased fee.
STORAGE ROOMS
Small
$86.00
$112.00
Month
$22,776.00 Increased fee.
Large
$204.00
$224.00
Month
$2,880.00 Increased fee.
STORAGE ROOM SECURITY
DEPOSIT (MAY BE
REFUNDABLE; COLLECTED
AT SIGNING OF AGREEMENT)
New language.
Small
$100.00
$224.00
Each
$0.00 Increased fee.
Large
$200.00
$448.00
Each
$0.00 Increased fee.
FACILITY APPLICATION FEE
Open Tie Down Small Single
Engine Aircraft
Delete, consolidating language.
Open Tie Down Small Twin
Engine Aircraft
Delete, consolidating language.
Open Tie Down Large Propeller
Aircraft (>12,500 lbs. MCTW)
Delete, consolidating language.
Open Tie Down Jet Aircraft
Delete, consolidating language.
Open Tie Down Helicopter
Delete, consolidating language.
OPEN TIE DOWN
$100.00
Tie Down
New language.
Late Payment Fee (Hangars, Tie
Downs, Storage Rooms)
$20% of
Account
Balance Due
Month
Delete $ from fee.
FUEL FLOWAGE FEE
100LL AVGAS & Alternative Fuels
$0.14
$0.15
Per Gallon
$14,665.00 Increased Fee.
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Description of Service
Current Fee
Range
Proposed
Fee Range
Unit
Total Fiscal
Impact
Notes
LEASE DOCUMENT
TRANSACTION FEE
$300.00
$500.00
Each
$4,800.00 Delete ‘Lease’/Update language.
Increased fee.
RENTAL CAR CONCESSIONS
Rental Car Parking Space - Car
$30.00
MONTH
Add unit.
TERMINAL ADVERTISING
BOARD DISPLAY
$100.00
MONTH
$1,200.00 New language. New fee.
Estimated Total Annual Fiscal Impact:
$257,026.00
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