Consideration and Adoption of Ordinance No. 2025-30: An ordinance of the City Council of the City of Flagstaff, Amending The Flagstaff City Code, Title 3 Business Regulations, Chapter 3-10 User Fees, to establish Airport Rates And Fees, and by amending Title 8 Public Ways And Property, Chapter 8-06 Airport Rules And Regulations to add definitions of secured areas of the Airport; providing for penalties, repeal of conflicting Ordinances, severability, providing for clerical corrections, and establishing an effective date.
 

The proposed ordinance will increase paid parking rates and establish additional categories of paid parking rates for Flagstaff Pulliam Airport effective January 15, 2026, and establish a rate increase effective July 1, 2026. The ordinance will also establish airport security badging fees effective January 15, 2026, and establish a rate increase effective July 1, 2027.

These rates and fees will help generate revenue to cover some of the operating and maintenance costs at the airport. 

The airport operates as an enterprise fund, but revenue generated by the airport has not traditionally been sufficient to cover all operating expenses. The proposed parking rates and security badging fees will reduce the Airport Fund's reliance on General Fund support and help cover some of the increasing operating and maintenance costs. Per the Federal Aviation Administration (FAA) grant assurance no. 24, the airport is required to "maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances...."  

The current policy at the airport has been to allow passengers to exit the lot without paying when they have lost their parking ticket and other methods of finding their transaction have failed or are unavailable. The lost ticket fee will allow the airport to charge passengers who have lost  their ticket and prevent passengers from exiting for free.  Allowing for monthly fees and permits will allow the airport to utilize unused parking spaces during times of slower activity. 

The airport does not currently charge for security access credentials and does not implement any penalty for lost credentials. The proposed badging fees will help recover a portion of the cost of administering the Airport Security Program and will implement penalties for lost badges. 

• December 7, 2021 - Council adopted Ordinance 2021-23, establishing paid parking rates at the Flagstaff Pulliam Airport effective January 28, 2022 with a rate increase on July 1, 2023.
• December 12, 2024 - Staff presented an airport budget overview to the Airport Commission that included current airport fees and the proposed approach to new fees and fee increases.
• January 9, 2025 - Staff presented proposed parking fees to the Airport Commission. The Commission voted in favor of the proposed monthly rates and lost ticket fees, and asked for more information regarding the proposed fee increases at future meetings.
• February 13-14, 2025 - Staff presented on the fiscal health of the Airport Fund and current and proposed fees (including parking and badging) at the airport that could improve the health of the fund.
• May 8, 2025 - Staff presented additional information to the Airport Commission about the proposed parking rate increases, and the Commission voted 3-2 in favor of the proposed rates. The proposed badging fees were also presented, and the Commission requested additional information to be presented at a future meeting and a fee waiver for contractors working on airport-funded projects before voting.
• August 21, 2025 - Staff presented additional information to the Airport Commission about the proposed badge fees with revisions requested in the previous discussion. The Commission voted 3-1 in favor of the proposed badge fees.

• Approve the Ordinance as written.
• Amend the Ordinance by changing rates or effective dates and provided direction to staff.
• Do not approve an Ordinance.

The Flagstaff Pulliam Airport is a key component of Flagstaff’s link to the global marketplace, facilitating local, national and international commerce as well as support the local tourism industry. Business activity is dependent upon the existence of efficient access to local air service. A recent economic study performed by Arizona Department of Transportation identified that the Flagstaff Pulliam Airport generates $68M in direct economic impact and $60M in induced economic impacts annually. American Airlines provides commercial service with daily flights to Phoenix and Dallas Fort-Worth. Passenger enplanements were up 7% in calendar year 2024 from 2023, with 79,081 enplaned passengers. This was the airport’s fourth-highest annual enplanements ever and highest with a single carrier. The airport offers 61 airport hangars and 48 covered tie-downs that can be rented on a monthly basis for storage of personal aircraft. The Airport Business Park has numerous businesses, such as T-Gen North and Joy Cone, and the airport has a partnership with Wiseman Aviation as our fixed based fuel operator. The Airport Fund operates as an enterprise fund within the City of Flagstaff’s municipal operations. Enterprise Funds are used to account for operations that provide services to the general public for a fee. Under GASB Statement No. 34, enterprise funds are also required for any activity whose principal revenue sources meet any of the following criteria: 1) any activity that has issued debt backed solely by the fees and charges of the activity, 2) if the cost of providing services for an activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or 3) it is the policy of the City to establish activity fees or charges to recover the cost of providing services, including capital costs.

Safe & Healthy Community
- Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
- Promote physical health through providing recreation opportunities, parks, open space & multiple transportation options.
Sustainable, Innovative Infrastructure
- Deliver outstanding services to residents through a healthy, well-maintained infrastructure system.
- Provide effective management of infrastructure for all modes of transportation.
High Performing Governance
-Maintain the organization's fiscal stability through strong financial policies and practices.

Goal T.10. Strengthen and expand the role of Flagstaff Pulliam Airport as the dominant hub for passenger, air freight, public safety flights, and other services in northern Arizona.
Policy T.10.1. Maintain and expand Flagstaff Pulliam Airport as an important link to the national air transportation system.
Policy T.10.3. Seek opportunities to expand destinations and frequency of regional air service throughout the southwest and west.
Goal T.3.4 Actively manage parking, including cost and supply to support land use, transportation and economic development goals. 

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