Costs, revenue fly higher than Bob Hope Airport’s projections
Bob Hope Airport generated more revenue than anticipated so far this fiscal year. However, additional funds from the airfield’s reserves are being taken out to pay for a proposed replacement terminal project and to replace an emergency backup generator.
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Airfield staff told the Burbank-Glendale-Pasadena Airport Authority board on Monday that operating revenues exceeded their 2015-16 budget projections by about $1.59 million. That is roughly 5.2% more than projected.
The airfield is in the eighth month of its fiscal year, which started July 1 and ends June 30.
Officials credit a 2.15% increase in passenger levels over the same time last year for the favorable bump in revenue. Airport facility rentals were $509,468, or 5.7%, more than anticipated, and parking revenue was $258,944, or 2%, more than what was projected.
Additionally, the airfield’s miscellaneous revenue was $428,070, or 53.5%, more than anticipated, due to getting a financial boost through film permits, a TSA reimbursement program and an unexpected increase in fuel purchases from FedEx, UPS, private jets and the military, said airport spokeswoman Lucy Burghdorf.
Although the airfield’s revenues have gone up, Bob Hope was also hit with unseen increases to its capital expenditures. The airport budgeted about $14.47 million for various programs to improve and maintain the facilities, but officials said an additional $4.7 million is required to mostly fund expenses tied to the proposed 14-gate replacement terminal and to replace the emergency backup generator.
Officials set aside $500,000 as seed money for the initial phase of the terminal project, not knowing what the full price was going to be, Burghdorf said.
Expenditures for the first phase of the project are estimated to be about $3.52 million — including $1 million for the environmental impact report, about $1.3 million in ongoing legal fees to review the report, $515,000 to review the development application and more than $300,000 in planning, outreach and financial consultants.
Additional money pulled from the reserves is expected to go toward the emergency backup generator replacement, which was initially budgeted to cost $2.1 million. However, delays by the contractor have increased the cost to about $2.5 million.
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Anthony Clark Carpio, [email protected]
Twitter: @acocarpio
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