Wagga City Council’s staff have called for an increase in airport fees to offset what the draft budget saw as inadequate cash reserves.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The airport’s advisory committee last week debated draft budget submissions where a 1.9 per cent fee increase was proposed.
Cr Paul Funnell said he was not going to accept a fee increase without the results of an audit, otherwise he and other councillors would be “flying blind” with their decisions.
“Personally, I think the report should be withdrawn,” he said.
“I don’t think we should be touching anything because there is an audit going on of the airport’s facilities to report back to the advisory committee and council.
“I don’t think we should be doing anything until that report comes back, otherwise we’re basically making decisions when we don’t have the information; pardon the pun, but we’re flying blind.”
A draft airport budget, which was accepted by the committee last week, stated “at present, the income the airport is generating is not adequate to cover the operating expenditure and future capital requirements”.
“The airport’s asset base is in excess of $36.3 million, and to have an expected cash reserve of only $259,722 at the end of this financial year is not adequate,” it stated.
“Council officers are still recommending a 1.9 per cent fee increase, to improve the financial position of the airport reserve to meet the future needs of the airport and expectations of the community.”
Regional Express (REX), one of the two major commercial passenger airlines that use Wagga airport, wrote to the committee in opposition to the fee increase.
Rex network sales and strategy general manager Warrick Lodge stated that a growth in passenger numbers. combined with previous increases in fees and per-head taxes, was “delivering airport revenue growth from the Regular Public Transport sector”.
“This should negate any desire to apply a CPI increase in 2020,” Mr Lodge stated.
Editor’s note
A previous version of this story reported that the minutes from last week’s meeting of the airport advisory committee would be presented at Monday night’s council meeting.
This was incorrect.
The minutes from the committee meeting will be presented to councillors to accept at a later council meeting.