Changes to predicted landing fees at Parkes Regional Airport have forced a total reworking of Parkes Shire Council’s long term financial plans for the facility.
The updated financial plans for the airport were presented as part of the Director of Corporate Services’ report to the last council meeting.
While future works and expenditure at the airport depends on options such as planned landing fee increases and other commercial agreements, refurbishment works on the runway and apron are planned for 2008-09.
The estimated cost of these works is $2 million.
Council’s updated financial plan for the airport is based on restricting capital expenditure to $2 million for the next five years, until it is determined if the airport will remain a council asset or is sold to a development company.
In 2007, the financial plan for the airport was based on borrowing $2.4 million in 2009/10 for major works, including refurbishment of the runway.
The feasibility of this plan was based on the proposed increase in landing fees.
Council planned to raise the fees by $4 per head in 2007/08, and then $6 per head in 2008/09.
The additional revenue from the increased landing fees was expected to form a substantial part of the loan repayments.
In 2007, Parkes Shire Council adopted the proposed financial plan and also resolved to adopt the revised airport landing fees.