The City of Kissimmee operates ISM as an enterprise fund, meaning revenues produced by the airport are utilized to offset the annual operating and capital expenses. KISM operates self-sufficiently with the goal of requiring no general funds from the public. To ensure this continues, rates and charges are set based on the operating and capital improvement forecast over a five-year projection.
Although costs have significantly risen over the past two decades, FAA funding entitlements for general aviation (GA) airports have remained stagnant. GA airports face financial challenges and have limited revenue sources compared to those typically available to commercial airline airports. GA airports may also struggle to compete for Airport Capital Improvement Program discretionary dollars, and some key airfield components, such as crosswind runways or aircraft parking aprons, are typically considered low priority funding items for the FAA.
Since 2015, ISM has utilized $1,027,549.00 from reserve funds to finance several capital improvement projects, usually leveraging federal and state grants. FY’25 – FY’30 capital improvement projects total approximately $62M requiring $5M from reserve funds, ($850,332 average per year/6 years). This does not include an additional $56M, requiring $1.1M from reserves ($188,000 average per year/6 years) if the Runway 15/33 Rehabilitation Project and major Apron Projects are introduced (FAA recommendation). It is estimated an additional $210,000 is needed annually for personnel and deferred maintenance projects for airfield fencing, lighting and pavement repairs. ISM’s reserves are also utilized for maintenance overruns or emergency responses.
Implementing transient aircraft landing fees is a viable strategy endorsed by the FAA to enhance airport financial stability – if following grant assurances and guidance to ensure reasonable rates and financial accountability. GA landing fees are popular in certain regions, with the Northeast, West Coast, and Texas, having the most GA airports with landing fees. GA airports in Florida generally do not charge landing fees, however, there is no legal barrier to their implementation. Some commercial airline service airports in Florida charge GA aircraft landing fees.
A growing number of Florida GA airport leaders recognize this approach as a reasonable means of revenue generation to assist achieving financial stability. Landing fees would diversify revenue streams, support infrastructure upgrades and expansion, and assist in managing operating / maintenance and capital improvement costs.
The landing fees would apply to transient aircraft to supplement the revenue needed for cost recovery and future capital improvement projects. This adheres to the user-fee principle, ensuring that those who benefit directly from the use of ISM facilities contribute fairly to their upkeep and expansion. Based aircraft owners will be exempted from landing fees since they contribute to revenue sources through ground and facility rental leases and are often engaged in bolstering the local economy through job production and purchasing of local goods and services.
The typical landing fee is set as a fixed amount per 1,000 lbs. of weight, based on either Maximum Take-Off Weight (MTOW) or Maximum Landing Weight (MLW). Fees typically vary from $1.50 to $12.00 per 1,000 lbs. (Source: Vector Airport Systems)
It was recommended to set the transient fixed-wing aircraft landing fee at $3.00 per 1,000 lbs. MLW, and a transient helicopter fee of $20.00 per operation. This fee structure could generate annual revenue of approximately $600,000 at KISM (based on 2023 transient landings). While it is understood that each airport arrives at a fee structure meeting its unique financial needs, these fees keep with rates proposed by other East Central Florida airports and align with industry norms.
The City Commission, at its regularly scheduled meeting on September 17th, held its second public reading of the proposed ordinance to implement transient landing fees at ISM. After hearing a lengthy discussion by the public, the Commission approved the ordinance unanimously 5-0. The Commission tabled two consent items, review/approval of the third-party collection agency agreement and review/approval to revise the Rates & Charges Policy to add the landing fee structure.
The City Commission met on October 15th to consider approving the collection agency agreement and the revised Rates & Charges Policy. An option was introduced to exempt one landing per day for all aircraft under 5,000 lbs. This option would reduce the revenue collected by an estimated $100,000 but would allow the non-commercial operator in that aircraft category to visit ISM and conduct business without a landing fee. After a lengthy public discussion, the Commission tabled both items for further review.
The City Commission discussed holding a future workshop to review the rate structure and determine what fees may be acceptable. The November election has three Commission seats on the ballot, two current Commissioners will be replaced due to their terms expiring. It is expected the newly assembled Commission will determine the next steps.
Comments