Corps flights to floods jack up VTR fuel sales|[06/27/08]

Published 12:00 am Friday, June 27, 2008

Flights by U.S. Army Corps of Engineers officials to flood-ravaged areas on the Upper Mississippi coupled with rising prices have spiked fuel sales at Vicksburg Tallulah Regional Airport by nearly 23 percent, statistics show.

Sales of jet and low-lead fuel to the government-owned planes and private users totaled $83,754 for the year, up from $64,659.60 at this time last year. Aircraft operators spent $157,115.80 on fuel for 2007.

Still, the Mound airport absorbed hikes in the per-gallon cost of both fuels averaging more than $1, causing profit margins to vary greatly.

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“We used to make $1.20 on jet fuel, now it’s 82 cents,” VTR board member Dan Fordice told Warren County supervisors Thursday.

Fuel will comprise most of the cost of goods sold in the airport’s 2008-09 budget, early estimates showed.

Costs of purchasing oil and fuel in the coming year are expected to outpace this year by more than $350,000, nullifying sales caused by high fuel prices and slightly higher than average jet fuel prices since late April.

Payroll is expected to increase more than $7,000, a figure including health insurance cost increases factored into salaries for the secretary and general manager.

Overall, VTR will operate at a deficit of $136,304.76 in 2009, deeper than the $110,000 hole it managed in for fiscal 2008.

“There’s very few other changes other than fuel,” Fordice said.

Since its construction in 1983, day-to-day operations have run Vicksburg, Warren County, Tallulah and Madison Parish about between $20,000 and $30,000. For 2009, however, budgeted costs per owner will jump to $34,076.19 – fueled by a need for a 14-unit T-hangar and land clearing work associated with a $3.3 million parallel taxiway system project. Grants from the Federal Aviation Administration and the Louisiana Department of Transportation and Development will pick up the tab.

Fordice said the FAA has given the airport the notice to proceed on the construction, with an added caveat that the five-member VTR advisory board be given more autonomy without certain consents from the owners. The current maintenance pact expires in December.

Overall, Fordice said, fuel sales mean more planes have been taking off from the runway this year.

“If we built 14 T-hangars, we could fill them up tomorrow,” Fordice said.

Late last year, Vicksburg Municipal Airport was restored to the 3,300-facility National Plan of Integrated Airport Systems. Since then, more than $1 million in grants has been awarded to the city for new infrastructure.

Department requestsfor money coming in

County Administrator John Smith said Thursday he has received the first round of budget requests from major county departments.

With fuel costs likely to inflate most requests for 2008-09, any approvals on the hikes might meet with resistance to preserve current millage rates and property taxes already expected to go up due to higher valuations, Smith said.

Valuations on real and personal property for this year are expected to be released by the Warren County Assessor’s Office anytime. Last year, true values exceeded $3 billion due to commercial redevelopment and new high-end hotel construction.

Homestead parcels are assessed at 10 percent of the true value. On all other property, including commercial, agricultural and rental, it is assessed at 15 percent. Tax bills result from multiplying that figure by the millage rate, currently 83.94 mills between city, county and school rates.