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01-22-2002 Special Called Meeting -t""'"'"!'\ PEACHTREE CITY AIRPORT AUTHORITY MINUTES OF MEETING January 22, 2002 A special Called meeting of the Peachtree City Airport Authority was held at the Aviation Center, Peachtree City-Falcon Field Airport, on January 22, 2002, at 8:00 p.m. Those present were Chairman Catherine M. Nelmes; Members: Jerry R. Cobb, Douglas A. Fisher and Mark H. Harris; Airport Manager James H. Savage; Assistant Manager Andrew Bolton; and Authority Attorney Douglas B. Warner. Mernber H.E. Buffington was absent to be with his hospitalized father. I. NEW AGENDA ITEM 02-01-03 Consider short term Intergovernmental Agreement with the City of Peachtree City for deficit reduction. ~, t: , Chairman Nelmes gave a brief review of the City Council meeting of January 17, 2002, during which the Council discussed the anticipated shortfall in Hotel/Motel Tax collections, and their action to raise the tax from 5% to 6%, effective February 1, 2002. Chairman Nelmes also outlined the Council's request for the Development Authority and the Airport Authority to absorb a pro rata share of the shortfall based on the proportion of the tax they receive. Chairman Nelmes and Mr. Savage reviewed the various documents that have been produced by Mr. Paul Salvatore, the City's Financial Officer, Mr. Steve Rapson, Member of City Council, and Mr. Savage that outline the anticipated shortfall. The Authority Members agreed by consensus that the following items should be included in discussions with the City Council on the shortfall issue: · The Airport Authority expresses its willingness to support and cooperate fully with the City Council to address the budget shortfall. · The Authority is willing to set aside a portion of the monthly proceeds it receives from the Hotel/Motel Tax, as defined by the Intergovernmental Agreement, to assist in the reduction of such shortfall, should it occur. &d I, r: ~ I.' · The amount of the proceeds to be set aside can only be determined after the Authority completes its budgeting process for the remaining six months of Fiscal Year 2002, which will be discussed at its February 13th, meeting. 1 ~, · Once the maximum amount of set-aside has been determined, the Authority will collect and. hold that amount until the end of the fiscal year. Once the City has determined the actual shortfall in the Hotel/Motel Tax, the Authority will return such funds to the City in an amount equal to its proportional share of the shortfall, or the total amount set-aside, whichever is the lesser amount. · Any funds returned to the City will be treated as a no-interest loan, and repaid to the Authority once the FY 2002 shortfall has been recovered. It was discussed that prior to the current Intergovernmental Agreement, the Authority's share of the tax proceeds would rise and fall on a month-by-month basis. By accepting a fixed monthly distribution, both Authorities acknowledged that any windfall that might occur in the tax collections would flow to the City. At the time it was assumed that any such shortfall in those proceeds would be the City's responsibility. During discussions it was also noted that as a percentage of its operating budget, any reduction in the distribution of the Hotel/Motel Tax to the Authority, has a much greater impact on the Authority's budget than it does on the City's budget. The Authority discussed the severe financial storm that the airport had already weathered due to the terrorist attacks on September 11, 2001. Following those events, the airspace ~ above the airport was essentially closed for over a week, and flight restrictions of varying , . degrees lasted for several week thereafter. Those actions had a serious impact on fuel sales by the Authority, which 'is one of its major sources of revenue. While sales have returned to normal levels, the Authority has already experienced a revenue shortfall during the early part of this fiscal year. After additional discussion, a motion was made by Mr. Cobb stating that the Chairman of the Authority and the Authority's staff, including Legal Counsel, are hereby authorized to meet with the Mayor, City Council and appropriate City staff, to enter into such communications as are necessary to support and cooperate during this period, to help the City cope with its budget shortfall during the remainder of this fiscal year. The motion was seconded by Mr. Harris, and passed unanimously. Chairman Nelmes, not hearing or knowing of additional items for consideration, called for a motion to adjourn. At 9:10 p.m., Mr. Cobb moved to adjourn, which was seconded by Mr. Fisher.The motion passed unanimously. ~~ Atteste by: Cath . . Nelmes, Chairman 2