Hollywood Burbank Airport plays it safe with next fiscal year budget
Hollywood Burbank Airport’s passenger numbers have been on a constant rise over the past two years, but officials aren’t taking any risks with the airport’s financial projections for the next fiscal year.
The Burbank-Glendale-Pasadena Airport Authority voted 7-0 on Monday to approve its 2018-19 fiscal year budget, which was balanced and required no changes to airline rates or charges, said Kathy David, the authority’s deputy executive director of finance and administration.
Commissioners Zareh Sinanyan and Steve Madison were absent.
David said that although passenger numbers are up compared to the past fiscal year, the budget was based on the assumption of a 5% hike in passenger activity during the next fiscal year, which begins July 1.
“This [passenger activity] has had a positive impact on the airport’s financial results, but we do always remain cautious and aware that things can change or slow down,” she said.
She added that money will have to be pulled from the airport’s reserve fund. However, that money will only be used for expenditures related to construction of a replacement 14-gate terminal at the airport.
Operating revenue for Hollywood Burbank for the 2018-19 fiscal year is projected to be about $56.7 million, which is up by about $5.8 million compared to the previous fiscal year.
David said she and her staff are expecting parking revenue to be about $20.9 million, an improvement of about $1.8 million compared to last year’s budget.
Additionally, officials forecast ground transportation — which is primarily ride-sharing companies — and concessions revenue to improve during the next fiscal year.
The airport could be making more money, David said, if all of the airport’s hangars were being rented. She explained there are currently four vacant hangars on the airfield, which could be attributed to the suggested rental fee of about $500,000 annually.
David highlighted some of the operations and maintenance projects the airport will be undertaking during the next fiscal year.
One project is linked to noise-level concerns some residents have expressed over the past year when the Next Generation Air Transportation System, better known as NextGen, became operational at Hollywood Burbank.
David said two temporary noise monitors, which will cost the airport $25,000 each, will be installed to help in an investigation being conducted by a consultant hired by the airport.
Other highlights of the operations and maintenance budget include working with a new parking services contractor to develop a pre-booking parking reservation system as well as paying for a redesign of the authority’s website.
anthonyclark.carpio@latimes.com
Twitter: @acocarpio
