Clark Co. money troubles abound

Funding woes were again the big issue at the Clark County Council meeting Monday.

The Clark County Board of Aviation asked the council for an allowance to become an airport authority — so it could better fund its operations — and the Clark County Building Authority asked the council for money to fund its operations, as well as up to $2 million pledged for renovations to make repairs to the building.

The board of aviation is unhappy with its current situation under the direction of the county.

“The reality is that county government is not a good vehicle to operate airports or to be a sponsor of an airport,” said Alan Conner, a member of the board of aviation. “You don’t have the financial capabilities and the economic development tools at your hand.”

Clark County is the sponsor of the airport, but it is technically owned by the Federal Aviation Administration. By being part of the Aviation Association of Indiana, and owned by the FAA, the airport is subject to a long list of federal regulations, but it also is able to receive federal funding for construction improvements.

Currently, the airport is set to receive more than $10 million in federal money in the next two to three years with a local match equaling 21⁄2 percent, according Jack Vissing, attorney for the board of aviation.

The federal funding would pay for expansion plans that include widening and lengthening runways and possibly constructing a control tower.

The cost submitted to the FAA is $6.9 million for construction improvements, with the local match totaling $172,846, according to the board of aviation’s report.

For the Construction Improvement Plan, the estimate for the cost is between $7 million and $10 million over four years, according to the board of aviation.

If the board were allowed to develop its own airport authority, it would have the power to run its own finances, receive its own tax money and could borrow and bond without the county’s participation, but the board would still be appointed by the County Commissioners.

“The answer is make us an airport authority and get us away from you,” Vissing said. “We fare quite well, despite the fact that we don’t have any money.”

The county’s role as a sponsor is not enough to cover the airport’s annual operating costs.

“Clark County, the sponsor, is probably in default on a number of assurances, obligations and responsibilities it’s made to the FAA,” Conner said.

About $200,000 to $300,000 is needed annually to operate the airport, he said.

After the runway expansion plans are complete — expected in 2012 — the operations budget will increase to $400,000 and $500,000.

“That’s not possible today. We know the county cannot provide it,” Conner said of the possible increase in costs.

If the airport is able to complete its expansion, it would be the second-largest airport in the region, behind Louisville International Airport, for which it is designated as a reliever airport.

However, approval would affect all taxing units within the county and is outside of the county’s primary tax levy, but may not be outside of the upcoming state-imposed tax caps.

“The way I understand it is that the only thing that can be outside of [the tax caps’ domain] is referendum,” said Councilwoman Barbara Hollis.

What is known is that if approval went forward, the airport would be able to create its own tax levy, which will be based on population as dictated by state statute.

“It’s not any fun to come back here repeatedly and try to fight with you guys over money when there isn’t any,” Vissing said. “We just have got business to take care of and this is the only way I can think of it is to ... become an authority.”

Another possible solution would be to pass state legislation to help fund the airport, which the board of aviation is seeking through the help of state Rep. Steve Stemler, D-Jeffersonville.

“This can’t go on the way it’s going,” Vissing said. “It’s bad for you; it’s bad for the airport.”

The council voted to table the decision whether or not to allow the board of aviation to become an airport authority by a 4-2 vote, with David Abbott and Chuck Moore voting against tabling.

The extra time will allow the council to investigate how the taxing revenue will affect the county and the individual taxpayers.

Building Authority

Another funding issue the council addressed was paying to keep the Clark County Government Building open.

The council approved $75,000 to pay bills that will come due in January, but tabled the remainder of the $534,500 requested by building authority Director Mark VanGilder.

At a previous meeting, the council asked VanGilder to cut his budget for 2010 by 30 percent, the same as other county offices. After the cuts, which meant layoffs, the 10-month budget equaled $609,000.

The authority’s budget has normally been funded two months short, which has been made up in the past by money remaining in the county’s funds.

In addition to funding operations for the building authority, the council must determine how it will fund $2 million to repair the building’s heating and cooling system.

Options included a $2 million public works loan or a $2 million general obligation loan.

A motion authorizing the council’s attorney, Scott Lewis, to proceed with Umbaugh and Ice Miller — which have been advising the council on funding issues — to secure a general obligation bond for building improvements not to exceed $2 million was approved 4-2, with Moore and Abbott voting against.

In other business

• The council approved 6-0 funding for Superior Court 2 for personal services for the remainder of 2009 for $21,500 and contract services for $5,000 out of the county’s riverboat fund.

• An additional appropriation was also approved 6-0 to pay worker’s compensation payments out of the county’s rainy-day fund totaling $73,521.

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MORE INFORMATION:

Money remaining in county funds — after expenses spend during the meeting — that will roll over into the 2010 budget, according to Auditor Keith Groth

• Rainy Day — designated during the meeting, $148,521; money remaining to roll over, about $2 million

• River Boat — Designated during the meeting, $26,500; money remaining to roll over, $84,500

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Airport board wants to form own authority; have ability to draw taxes

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