CITY MUST DECIDE USE OF AIRPORT TOWER FUNDS

Cape Girardeau officials haven't decided how to use the money paying for operation of the airport control tower now that the state will pay for tower operations.

Gov. Mel Carnahan last month signed legislation creating the Aviation Trust Fund, which, among other things, would reimburse cities up to $125,000 annually for control tower operations at rural airports where operations previously were funded by the federal government. That $125,000 a year will pay for most of the cost of running the control tower at Cape Girardeau Regional Airport.

The city has picked up the tab for operating the tower since 1996.

Mayor Al Spradling III said Thursday the City Council hasn't decided what to do with the money going to the tower. But there are some ideas on how the money should be used.

"We have discussed utilization of some of that for the restaurant at the airport, and that probably will be considered," Spradling said. "Beyond that I don't know what we'll be doing."

The council will look at paying for restaurant operations with a portion of the available funds, he said.

City officials and the Airport Advisory Board are entertaining the possibility of the city reopening and operating a restaurant at the airport. Private restaurant ventures have been unsuccessful. The advisory board is in the process of drawing up a recommendation to the council on restaurant operation.

The city pays for control tower operations from general revenues, Spradling said.

The council could also opt to let the funds "sit in general revenue" and build up the city's fund balances, Spradling said.

"We do have other needs, and I'm sure there's going to be other situations we'll be looking at at the airport besides the restaurant," he said.

The revenue could help fund improvement projects at the airport, said airport manager Bruce Loy. "There are several projects that we're looking at right now in this year's budget that we're trying to talk to the state about," Loy said.

Included are grant applications to the Missouri Department of Transportation for updating the airport master plan, upgrading a taxiway ramp and installing a backup generator to power the runway lights.

The funding could help pay for the city's match required if those grants are awarded, Loy said.

"We haven't sat down and said, here's where we want to use this money," he said. "What will happen over the years is as we look at improvements that are needed throughout the budget process, we will keep in mind that we have these funds to help us come up with that."

Spradling said the City Council and Airport Advisory Board will discuss how the funds could be best used.

Under the newly authorized legislation, up to an additional $5 million in sales-tax revenue from jet fuel will be transferred into the Aviation Trust Fund, which is administered by Missouri Department of Transportation. Previously, only about $1 million a year went into the trust fund through fuel sales tax; the rest went into the state's general revenue fund.

The trust fund will help pay for control tower operations and capital improvements at airports around the state.