Airport Authority approves budget of nearly $86.6M, up from last fiscal year

Through the use of reserve funds and grants, the Burbank-Glendale-Pasadena Airport Authority approved a balanced budget for the 2016-17 fiscal year.

The authority is working with a nearly $86.6-million budget, which is about $19.3 million more than the previous fiscal year. This is due to a $17-million project the airfield is undertaking to rehabilitate one of its runways, said Kathy David, deputy executive director of finance and administration, on Monday.

The project to refresh runway 8/26, which is expected to be completed this year, will be funded primarily through grants and from the airport’s reserves.

Other capital-improvement projects include setting aside $4.5 million to continue working on a proposed replacement terminal, $1.2 million for new equipment training for airline badges, about $1.1 million on surveillance-system improvements and a $1-million upgrade to a server room.

David noted general increases throughout the authority’s revenue stream, which is primarily due to passenger numbers increasing slightly and a recent adjustment of parking rates at the airfield.

However, the airport’s rental revenue dipped by $185,000 because of entertainment company DreamWorks leaving Hollywood Burbank Airport to rent a hangar at Van Nuys Airport.

Senior Deputy Executive Director John Hatanaka explained that DreamWorks employees who flew out of Hollywood Burbank lived closer to Van Nuys. Additionally, DreamWorks opted to go to Van Nuys because it could accommodate all of the company’s aircraft.

“For them, it was an operational synergy that made sense for them,” he said.

Commissioner Steve Madison said that he found it ironic that DreamWorks would leave Hollywood Burbank as the airport is undergoing its rebranding phase.

Though DreamWorks will stop renting a hanger at Hollywood Burbank Airport on June 30, David said the airfield’s newest tenant, JetSuite, has made up most of the revenue lost.

The 2016-17 budget also identified several new staffing positions at the airport. The authority will be creating a director of development services position, which is slated to be awarded to Executive Director Dan Feger once his replacement has been named. Feger is expected to retire from the authority in 2018.

The airfield is also looking to hire another airport engineer, security supervisor, maintenance supervisor and an intern.

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Anthony Clark Carpio, anthonyclark.carpio@latimes.com

Twitter: @acocarpio

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