El Toro to Keep Getting John Wayne Funds

A move to freeze spending John Wayne Airport funds on anything not related to the airfield’s operation was thwarted Tuesday by a majority of Orange County supervisors, who called the action premature.

Eliminating nonairport spending would have halted preparations for a new airport at the closed El Toro Marine base--something the pro-airport board majority wasn’t willing to forgo. About $45 million has been pulled from John Wayne revenues since 1994 to cover planning costs for an El Toro airport.

As at most of the nation’s airports, passenger traffic at John Wayne dropped after the Sept. 11 terrorist attacks. Airport Director Alan Murphy warned supervisors that passenger use for the remainder of the year will stay about 15% less than last year--but up from the 58% plunge the week after the attacks.

But an immediate spending moratorium wasn’t necessary, Murphy said.

He promised supervisors a more detailed analysis of the airport’s finances--including increased security costs, fewer parking fees and lower sales at terminal shops--at their Dec. 4 meeting.

So far, Murphy estimated, the county will pay an additional $12.6 million for airport-related expenses as a result of the terrorist attacks, ranging from increased security to added office expenses. John Wayne Airport lost another $9.2 million because fewer passengers used the airport.

Supervisors Todd Spitzer and Tom Wilson, who oppose the county’s plans for an El Toro airport, insisted that a spending freeze was the only responsible way to protect John Wayne operations and the repayment of $300 million in bond debt from a 1990 expansion.

“It doesn’t take significant study to see that the numbers are going the wrong way,” Wilson said. Responding to John Wayne Airport’s predicament “will demonstrate to Wall Street and the community that we’re dealing with these issues,” he said.

Spitzer said county penny-pinching already has affected airport operations, as seen in the decision--since reversed--to use less expensive private, unarmed guards to handle security after Sept. 11, including searching cars entering the terminal parking structures. Last month, the Sheriff’s Department agreed to take over security duties--at a higher cost.

The county is gambling by continuing to spend money on El Toro until a clearer financial picture emerges, Spitzer said.

“It’s like they took the mortgage payment and went to Las Vegas and bet it all on black,” he said. “I sure hope they’re more lucky than smart.”

Supervisor Chuck Smith joined board Chairwoman Cynthia P. Coad and Supervisor Jim Silva in voting against the spending freeze. He said the airport budget won’t be jeopardized by waiting another month for a more thorough financial analysis. If action is needed, it can be taken then, he said.

County officials have watched airport finances since March, when Murphy warned that the continued drain of El Toro planning on John Wayne revenues could result in higher fees for parking and use of the terminal.

El Toro’s continued drain on cash reserves also could affect the airport’s policy of repaying bond debt early, Murphy wrote.

Spitzer said county officials may have to renegotiate contracts with airport concession operators and consider imposing a per-ticket charge to cover increased costs and losses at John Wayne Airport from a sustained travel slump.

Unlike every other major airport in California, John Wayne doesn’t impose a ticket charge, called a passenger facility charge.

Congress has authorized airport operators to charge up to $12 per ticket to pay for airport improvements.