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Thursday, May 2, 2019

Wellsville Town Supervisor clarifies airport funding debate

From Wellsville Supervisor Shad Alsworth:
Clarifying Funding Debate for Wellsville Airport

The Wellsville Town Board would like to thank the County Legislature for the continued commitment to supporting the Wellsville Municipal Airport.  Recent discussions and multiple County led meetings have taken place to discuss the various ways in which Allegany County can help to promote and fund one of the Counties most valuable assets, the Wellsville Municipal Airport.
The Wellsville Airport Committee and the Wellsville Town Board felt it necessary to comment on a recent article distributed by several local media outlets concerning debates over a $50,000 funding request for the Wellsville Municipal Airport.  Please accept the following article as our attempt to clarify some of the information not easily understood.
When reviewing the needs of the Wellsville Municipal Airport, it is difficult but necessary to understand how the Airport functions, and how the finances are appropriated.  It is also helpful to understand that fiscal oversight is the responsibility of the Town Supervisor and Town Board, with further oversight from the NYS Comptroller’s Office along with audits required by the FAA and NYSDOT.
The Town of Wellsville Board and Airport Committee has worked diligently to provide as much information as possible to satisfy the inquiries of Elected and/or Appointed County Officials, along with other paid County employees as part of this partnership process.  We met in January to present our needs and requests officially to the “Committee of the Whole” for a “Q and A” at the Legislative Chamber.
 Working thru multiple requests, and talking with many County Representatives it has become readily apparent that there is a terrific overall understanding and support for the idea of partnering in some way with Allegany County to help ensure the Wellsville Municipal Airport remain a strong selling point for the Industrial Development Agency (IDA) and Economic Development Agencies when promoting future business growth and development in our County.
Thru this process it has become apparent that a few items still need to be clarified so that this partnership can move forward.  The following are a few that seem most confusing and in need of clarification:
1.         The Airport is funded thru the Town of Wellsville and has its own “Enterprise Fund” in the budgetary process as required by law.  All funds dedicated to the Airport have to remain in the Enterprise Fund regardless of the origins of the funds.   Any monies of support from Allegany County would be directed to the Enterprise Fund and could only be used by the Enterprise (Airport).

2.         The overall budget for the Airport Enterprise fund does in fact exceed $750,000 in 2019.  This number can reach well into the millions depending on capital projects that may be occurring during a fiscal year.  Our Enterprise budget further includes expenditures that are covered by revenues thru rental fees, use fees, Jet Fuel and Avgas sales, and most importantly from FAA and NYSDOT grant funding. 
 Over the last several years, the tax levied contributions that had to be transferred from the General Fund to the Airport Enterprise Fund to balance the income shortfalls range from around $60,000 to $110,000 depending primarily on necessary and/or mandated Capital Projects. (The $250,000 budget offered for the Olean Regional Airport does not include the “pass-thru” monies for their capital projects.  Without these “pass-thru” monies in the Wellsville Enterprise Fund, the budgetary expenditures are around $310,000….very similar to the $250,000 expenditure for Olean which has less Jet Fuel and Avgas sales.   Both Airports require similar “taxpayer” contributions to balance their Enterprise Fund budgets.   These discrepancies can easily be understood when reviewing the budget numbers provided to us by the City of Olean.)
3.         Our neighboring Cattaraugus County helps to financially support their Olean Airport.  These contributions would require financial accountability thru access to budget information and audits as would typically be required for any government contribution as defined by the NYS Comptroller’s Office.  We would expect our partnership to provide a system of accountability that would be satisfactory to Allegany County and any other governing agency.
4.         The Town of Wellsville is required by law to have “a balanced budget” for the Airport as well as all facets of our budget.  We are requesting County support because it seems reasonable that Town of Wellsville taxpayers should not continue to be solely responsible for funding and Enterprise Fund that supports an Airport that benefits every single citizen and/or taxpayer in some fashion in our County.
With the Allegany County IDA providing PILOT’s to multiple business entities in Wellsville to ensure their stability, coupled with decreases in assessed values on business entities within our Town, funding the Airport has become a much greater burden that Wellsville taxpayers can no longer afford nor should be expected to bear alone.
It seems appropriate that the County Lawmakers would reinvest resources that are partially funded to the County from Wellsville taxpayers thru property tax revenues and sales tax revenues that reach into the millions of dollars annually from Wellsville Businesses.
5.         Closing the Wellsville Municipal Airport would require paying back all FAA and NYSDOT funds that have been received over the last 20+ years.  These numbers reach into the millions of dollars range making it easy to understand how that is not a viable option.  The Town of Wellsville is looking to promote and grow the Airport by partnering with Allegany County to provide further financial and Economic Development assistance in hopes that it can become completely solvent on its own.
The Town of Wellsville and the Wellsville Municipal Airport Committee are grateful for the overwhelming support from most members of County government and the many departments under their direction.  Because of the tireless efforts of Gary Barnes (R-Wellsville), Karl Graves (R-Wellsville), Dwight Fanton (R-Independence), Board Chairman Curt Crandall (R-Belfast), Tim Boyde (County Administrator), Dr. Craig Clark (Director of IDA) and several other representatives, the County and Town of Wellsville are slowly developing long term partnership plans to ensure the success of this airport.
Financial Support is just one of the manners in which the County has offered to look into assisting the Airport.  We are encouraged by the forward thinking of David Decker (R-Cuba) and Debra Root (R-Scio) who understand the need to preserve this County asset and grow its usefulness by including it in the County Strategic Plan.  We are further encouraged by discussions with William Dibble (R-Little Genesee) that continue to shed light on future improvements and growth opportunities at our Airport.  We require continued support from the other representatives that have quietly acquired information and have offered their support, concerns, and suggestions.  Having support of the entire Board of Legislators is our ultimate goal.
There doesn’t seem to be any dispute in the value to the County and its citizens derived from the Wellsville Municipal Airport.  We are excited about the opportunity to work towards further developing the usefulness and benefits to all County residents and businesses.
Our County and Town Representatives recognize that doing nothing will certainly result in less than desirable results…..working together and consolidating resources will be the formula for success for most challenges facing our Townships and Businesses Countywide.  
Submitted by:
 Shad Alsworth (Wellsville Town Supervisor)
With approval and support from the Wellsville Town Board and Airport Committee