2004-06-03 Special Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 30
JOINT MEETING WITH THE AIRPORT AUTHORITY, JUNE 3, 2004 PAGE 46
ASSEMBLY
The New Hanover County Board of Commissioners held a joint meeting with the New Hanover County Airport
Authority on Thursday, June 3, 2004, at 6:15 p.m. in the Conference Room of the Wilmington International Airport,
1740 Airport Boulevard, Wilmington, North Carolina.
Members present were: Chairman Robert G. Greer; Vice-Chairman Julia Boseman; Commissioner William A.
Caster; Commissioner Ted Davis, Jr.; Commissioner Nancy H. Pritchett; County Manager Allen O’Neal, County
Attorney Wanda Copley and Clerk to the Board, Sheila L. Schult.
Authority Members present were: Vice-Chairman Carter Lambeth; Paul G. Burton; John M. Coble; Harry W.
Stovall, III; and Airport Director, Jon Rosborough.
Airport Authority Chairman E. L. Mathews, Jr. was unable to attend.
Chairman Greer and Vice-Chairman Lambeth called their respective boards to order.
Director Rosborough began the presentation by introducing the following members of the Staff who assist him
in the daily operation of the Airport: Julie A. Wilsey, Deputy Director; James Morton, Finance Director; Harold H.
Miller, Manager of Public Safety; and Janie James, Executive Assistant. He requested Ms. Julie Wilsey to begin the
presentation with a report on the Capital Improvement Plan.
Report on Capital Improvement Plan
Ms. Wilsey, Deputy Director, reported that the 2003-2004 Capital Improvement Plan included a clearing project
for the airport primary runway 35; continued infrastructure improvements addressing airfield drainage Phase III & IV;
renovation of current customs to accept international charters of up to fifty-one passengers; and terminal renovations
reflecting a local theme including customer amenities, checkpoint security upgrades, and retail spaces.
The following priority capital projects were presented for the next three to five years:
Customs Renovation (Old Terminal)$ 1,400,000
Runway 6-24 with ILS $14,000,000
Runway 6-24 Extension$18,000,000
Pavement Rehabilitation Runway 6-24$ 8,000,000
General Aviation Redevelopment$ 4,700,000
Rental Car Facilities$ 5,000,000
Access Control/Security$ 500,000
In closing, Ms. Wilsey advised that Staff will continue to pursue improving customer amenities and services,
maintaining vital infrastructure, and extending and re-paving runways.
Report on Financial Plan
Mr. Morton, Director of Finance, presented the Financial Plan and reported that the Airport has an operating
budget of $4,400,000 without a subsidy from New Hanover County and maintaining current airline rates. The major
sources of operating revenues are generated from parking fees, airline lease rates and charges, concession agreements,
rental car fees, and other fees. A Maintenance Development and Repair Reserve Account which was established to serve
as a savings account for emergency repairs has a balance of $1,900,000. The current cash position of the Airport as of
April 30, 2004, is $3,700,000.
Airport improvement projects receive FAA entitlement and discretionary funds. From 1983 to 1997, the Airport
received entitlement and discretionary funding in the amount of $15,249,294, and from 1998 to 2004, funds were
received in the amount of $25,748,474. Within the next ninety days the Airport will be receiving an additional
$6,500,000 from private monies, entitlement and discretionary funds. The required local match of 5% will be paid by
State grants, the Passenger Facility Charge, or appropriated from the general fund account.
Approval was again received to implement the 2004 Passenger Facility Charge, which will generate
approximately $17,000,000. This revenue will be used to acquire land and implement the runway drainage system and
paving. Through the County’s support of the COPS bonds for the Airport, these projects will be completed without
having to pay the money up-front. Another capital funding source is the Customer Facility Charge, fees from car rentals,
similar to the Passenger Facility Charge. With the County’s support of the COPS bonds this is a potential financing
option to fund a rental car service center.
In closing, Mr. Morton advised that the Airport remains to be in sound financial condition and stated that Staff
will continue to seek ways to 1) diversify ILM revenue source by limiting commercial airline dependency; and 2)
increase ILM Business Park economic impact by attracting new businesses and jobs, increasing corporate aviation traffic,
and creating a larger tax base on buildings and aircraft.
Report on Airport Security
Mr. Miller, Manager of Public Safety reported that the Airport is TSA compliant. Renovation of the terminal
included upgrades to the security system including the installation of additional cameras, Explosive Tracing Devices and
an expansion of the entrance to allow for placement of an Explosive Detection System, if needed. The front entrance
of the terminal was designed to be more user friendly for persons dropping off and picking up passengers including
porter service, upgraded carts, and new uniforms. Staff continues to work towards making ILM a hassle free
environment with an emphasis on customer service.
Report of Air Service Development
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 30
JOINT MEETING WITH THE AIRPORT AUTHORITY, JUNE 3, 2004 PAGE 47
Airport Director Rosborough reported that the Airport’s future goals include additional non-stop service to top
destinations, more jets with more seats, and reduced airfares. In the past year there have been over 450,000 outbound
and inbound passengers. Outbound passengers have increased 27.6% over the past year; with an increase of 40% from
May 2003 to May 2004. International service is up 33.9% YTD and General Aviation Service is up 22.6% YTD. A
concern that remains to be addressed is scheduled service issue of seats being over sold and under served.
In closing, Staff will continue to aggressively pursue additional carriers including low cost carriers; incumbent
carriers to increase frequency and cities; and scheduled international service. The main objective for FY 2005 is one
additional carrier and new destinations.
On behalf of the Board, Chairman Greer expressed appreciation to the Airport Authority and Administrative
Staff for the informative presentation.
After hearing no further comments, Chairman Greer and Vice-Chairman Lambeth adjourned the meeting at
7:15 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board