http://www.burbankleader.com/articles/2007/06/09/news/blr-budget09.txt Financial strategy pays off for airport Facility's financial health is very good, thanks to good management overall, officials there say. By Chris Wiebe BOB HOPE AIRPORT ? Airport officials are anticipating a 2007-08 fiscal budget that is similar to last year's, but there are no plans to tap savings accounts, which is a departure from fiscal year 2006-07. In the 2006-07 budget, $11 million in reserve spending was budgeted for runway rehabilitation, periodic maintenance of a major runway and to pay the partial costs of a parking lot relocation, airport spokesman Victor Gill said. But this year's $89.2 million budget will not draw from reserve funds. "It's reflective of a very conservative management strategy of our assets ? to hold on to your savings while you can in an uncertain environment because a rainy day is always out there," Gill said. That strategy was tested in the wake of terrorist attacks on Sept. 11, 2001, when the airport had the resources to self-fund $30 million in infrastructure upgrades, Gill said. "We had a very pressing need immediately ? for all of the safety and security enhancements that the law was going to require," he said. "And the only reason we got them is because we had been saving." A $20.1 million drop in non-operating revenue ? which includes passenger facility charges tagged on to ticket prices ? has more to do with what airport officials are spending than the amount of revenue that is being generated, Gill said. "The difference there is not so much that the revenue is generated, it's whether it is to be spent or not," Gill said. "And last year we were spending greater portions of our [passenger facility charge] reserves than we are this year. We were going to spend $20.2 million last year, we've only $12.1 million coming from expenditures from these [passenger facility charge] sources [this year]." Operating revenues, which include income from concessions and parking and landing fees, is relatively level versus last year ? a less than $2 million variation. That revenue differential comes from new leases with commercial carriers and general aviation that were added within the last year, Gill said. Airport officials outlook for a healthy fiscal year 2007-08 budget is the result of staff members who keep a vigilant watch on airport finances, said Charlie Lombardo, Burbank-Glendale-Pasadena Airport Authority commissioner. "I think the airport is in very sound, solid financial condition," he said. "Of the airports in the country, we are really probably one of the most financially well-managed." The strength of Bob Hope Airport's fiscal condition is farther highlighted when compared to municipalities, said Bob Yousefian, authority commissioner and Glendale City Council member. "The financial health of the airport is very good," he said. "I think we have a lot of reserves and we also are doing a much, much better than what we're doing in Glendale. "[The airport's] reserve is larger than ours. Actually, their airport has been running a lot more conservatively than I think we do in our city." CHRIS WIEBE covers City Hall and the courts. He may be reached at (818) 637-3242 ____________________________________________________________________________________ Be a better Heartthrob. Get better relationship answers from someone who knows. Yahoo! Answers - Check it out. http://answers.yahoo.com/dir/?link=list&sid=396545433 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".