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Home My WebLink About102-07 RESOLUTION• RESOLUTION NO. 102-07 A RESOLUTION TO EXPRESS THE CITY OF FAYETTEVILLE'S OPPOSITION TO PROPOSED FEDERAL LEGISLATION ALMOST DOUBLING THE FEDERAL TAX ON GENERAL AVIATION FUEL WHEREAS, General Aviation already pays about 22 cents per gallon fuel tax while Commercial Aviation pays only 4.3 cents; and WHEREAS, the FAA is recommending to the Congress that the fuel tax on General Aviation be almost doubled to 41 cents per gallon (almost ten times the tax on Commercial Aviation fuel which is not recommended for any increase); and WHEREAS, it is unfair that all Increased fuel taxes are forced upon General Aviation; and WHEREAS, General Aviation actually carries more passengers annually than Commercial Aviation and is a vital amenity for cities like Fayetteville which is served by one of the busiest General Aviation airports in Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby officially opposes the FAA proposed federal legislation that would unfairly add a disproportionate increase to the federal fuel tax on General Aviation from 21 9 cents to 41 cents per gallon while leaving_ the federal tax on Commercial Aviation fuel at 4.3 cents per gallon. ``�‘.‘`�oK/TR•c''r.,, � ).•bSY�op SG:p rte, c C‘? • PASSED and APPROVED this 5th day of June, 2007. APPROVED: By: U E :FAYETTEVILLE° ATTEST: "%9s4:5)kANSPOJ?�` ,G T 014 iiiiiiiiii ii SONDRA E. SMITH, City Clerk/Treasurer DAN COODY, Mayor -sin4717 r Ray M. Boudreaux Submitted By • City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 6/5/2007 City Council Meeting Date Aviation & Economic Development Division Action Required: C aS 6754d 2 %viand fit! /X General Government Department Action Required: Approve a Resolution opposing the FAA's proposed user fee increase. Cost of this request Account Number Project Number Budgeted Item Funds Used to Date Remaining Balance Budget Adjustment Attached Program Category / Project Name Program / Project Category Name Fund Name id:Lede je-0 Department Director n y Attorney cx Finance and Internal Service Director Mayor s/c?[o1 Date 5122 -o'J Date 5. 2z -o7 Date z2/t Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office Received in Mayor's Office EMT EO SZ2j Comments: No Budget effe MmM City Council Meeting of: June 5, 2007 Agenda Item Number: CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO TO: Mayor and members of the City Council THRU: Staff/Contract Review Committee FROM: Ray M. Boudreaux, Director, Aviation and Ecoomic Development DATE: May 16, 2007 SUBJECT: Resolution against the FAA proposed user fee increase for General Aviation RECOMMENDATION: Approve by resolution of the City Council against User Fee increased being recommended by the FAA for all General Aviation aviators. Under the proposed legislation, fuel taxes will be increased from $.219 per gallon to $.41 per gallon. Additional fees will be charged depending on the services utilized. While it is not unreasonable to require users to pay for services, it is grossly unfair to require GA to pay and not the airlines. Airlines pay only $.043 per gallon and the proposed legislation does not increase the fee. Passenger Facility Charges (PFC'S) are paid by passengers through the ticket price. The airlines pass those fees through to the FAA. BACKGROUND' The AOPA, NBAA, AAOA Department of Aeronautics and every other aviation group has vowed to stop the user fee increase unless similar increases are imposed across the board. The AAOA Board of Directors passed a resolution against the proposed legislation. DISCUSSION: This action will support the vast majority of aviators in the region and the state. There is no doubt the FAA needs a new source of revenue to pay the cost of operating the system. If the airlines paid the same a general aviation, there would be more than enough funding. We recognize that the airlines represent a major part of the National Transportation System and deserve subsidy. We also recognize that general aviation caries more passengers during the year than the airlines which also represents a significant air transportation service that the airlines could not accommodate. Thus the need for taxation parity to support the system. BUDGET IMPACT: The purpose of this action is to approve the resolution and does not involve budget. Attachments: Resolution Staff Review Form Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director RESOLUTION NO. A RESOLUTION TO EXPRESS THE CITY OF FAYETTEVILLE'S. OPPOSITION TO PROPOSED FEDERAL LEGISLATION ALMOST DOUBLING THE FEDERAL TAX ON GENERAL AVIATION FUEL WHEREAS, General Aviation already pays about 22 cents per gallon fuel tax while Commercial Aviation pays only 4.3 cents; and WHEREAS, the FAA is recommending to the Congress that the fuel tax on General Aviation be almost doubled to 41 cents per gallon (almost ten times the tax on Commercial Aviation fuel which is not recommended for any increase); and WHEREAS, it is unfair that all increased fuel taxes are forced upon General Aviation; and WHEREAS, General Aviation actually carries more passengers annually than Commercial Aviation and is a vital amenity for cities like Fayetteville which is served by one of the busiest General Aviation airports in Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby officially opposes the FAA proposed federal legislation that would unfairly add a disproportionate increase to the federal fuel tax on General Aviation from 21.9 cents to 41 cents per gallon while leaving the federal tax on Commercial Aviation fuel at 4.3 cents per gallon. PASSED and APPROVED this 5th day of June, 2007. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer f (6.8 07) Clarice Pearman - Res. 101-07 & 102-07 From: To: Date: Subject: Attachments: CC: Ray: Attached are copies of anything else needed. Have a good day. Thanks. Clarice Clarice Pearman Boudreaux, Ray 6.8.07 10:48 AM Res. 101-07 & 102-07 102-07 Fuel Tax Opposition.pdf; 101-07 Airport Master Plan.pdf Audit the above resolutions passed by Clty Council, June 5, 2007 the airport. Please let me know if there is Clarice Buffalohead-Pearman, CMC City Clerk/Treasurer Division 113 West Mountain Fayetteville, AR 72701 479-575-8309 cp ea rm a n na. ci. favettevi I le. a r. u s Page 1