Fee Hikes Urged to Resolve Airport Deficit

Facing a potential $10.4-million loss at John Wayne Airport partly as a result of the Sept. 11 terror attacks, county supervisors Tuesday began weighing bailout steps such as doubling parking rates and raising rents for hangars and aircraft storage space.

The proposals exclude any reductions in the millions of dollars the airport provides every year to help plan a new airport at the former El Toro Marine Corps Air Station--a project that might be doomed. Figures show the annual allocation could erase the loss.

The omission of that alternative at Tuesday’s board meeting quickly refueled the debate over whether to push forward with a commercial airport at the closed base. The matter could be resolved in March when a ballot measure calling for a huge park at the site is voted on.

“This goes down in the annals of Orange County history as the most reckless financial decision since the bankruptcy,” Supervisor Todd Spitzer said of the proposed hikes in airport fees.

About $11.8 million in John Wayne funds have been earmarked for the El Toro planning effort for fiscal year 2001-02. So far, about $40 million in airport revenue has been spent on the proposed airport.

Rather than raise fees, Supervisors Spitzer and Tom Wilson, both opponents of the proposed airport, suggested that John Wayne can solve its financial problems by simply halting the flow of discretionary funds to the El Toro planning effort.

During the board meeting, Spitzer said airport manager Alan Murphy has warned the board in previous memos and e-mails that the continued use of the funds--so-called 14M money--for El Toro planning could drain John Wayne’s budget.

“From a business perspective, if we eliminate the discretionary spending on El Toro,” Wilson said, “it looks like [the airport] would be in good shape financially.”

The funds are used by the Local Redevelopment Authority for consultants, staff and legal work. About $6 million is budgeted this year for a public information program, of which about a third has been spent. The airport’s overall annual contribution has increased from $6 million in 1999 to $11.8 million this year.

Spitzer called for a moratorium on the funds, but Supervisors Cynthia P. Coad, Chuck Smith and Jim Silva--the board’s bloc of El Toro supporters--voted to postpone consideration of the fee increases until January. A public hearing will be set at that time.

Coad, Smith and Silva were largely silent on the airport issue Tuesday. They have repeatedly voted to use John Wayne funds for El Toro over the objections of Spitzer and Wilson, who unsuccessfully pushed for a moratorium two weeks ago.

Before Tuesday’s action, Murphy told the board that rate hikes are necessary at John Wayne to overcome a projected $10.4-million loss in net income for fiscal year 2001-02. Airport officials predict a 15% decline in passengers this year. John Wayne handled about 6.8 million passengers last year.

The new fees, Murphy said, will help the airport maintain cash flow, protect bond ratings and pay for $8.7 million in additional security costs.

Murphy’s proposals would increase parking fees from $11 to as much as $21 a day. Rents for aircraft tiedowns would increase by $39 to $47 a month depending on the size of the space.

Rents for county hangars would rise from $139 to $193 a month, while airport fees for passenger shuttles would increase from $1.75 to $2.25 per trip.

Another option would be to maintain the current rates and deal with the shortfall with reserve money or by other means.

Murphy conceded that keeping the El Toro planning money would keep John Wayne Airport in the black. But, he said, he preferred increasing rent and parking.

Several speakers at the board meeting urged supervisors to stop the drain on John Wayne funds rather than raise fees. They cited the board’s multimillion-dollar public information program on El Toro.

“You need to stop telling these lies and use that money to cover the other shortfalls,” said Denny Harris of Laguna Niguel. “The money you’ve spent hasn’t changed the minds of anyone in Orange County” on the airport.

Dave Kirkey, an anti-airport activist from Coto de Caza, said he doubted whether the airport’s passenger projections would hold up given the recession and continued government warnings about terrorist attacks.

“El Toro is not needed, not wanted and isn’t going to work,” Kirkey told the board. “The use of the money for El Toro is a waste. The public keeps telling you they don’t want it.”

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Times staff writer Jean Pasco contributed to this report.

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Monthly Fees

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