Module 1, Objective 7, Airport Capital Funding Flashcards
What is a Policy Guidance Letter (PGL)?
AIP guidance through the FAA
What are the 3 types of AIP money and how are they disbursed?
o Entitlement: awarded through a formula
o Se-Aside: for noise, military, GA relievers
o Discretionary: 75% to capacity/safety/security/noise, 25% are pure discretionary and may be used for an eligible project at any airport
What is the federal share of a project depending on the airport size?
o Large and medium hubs it is 75% or 80% if it is for noise implementation programs
o Small and no hubs It is 90%
What are entitlement apportionments?
first funds to be issued to airports or sates. May be used by the airport or transferred to another airport
What are discretionary monies?
distributed by the office of management and budges, they allow the FAA to obligate congressional apportionments with a financial plan based on regional submissions of program plans
think what you helped with in Springfield
What is a State Apportionments?
AIP moneys for non-primary commercial service or GA and reliver airports
What is a Block-Grant?
it means that the state assumes responsibility for administering AIP grants at airports classified as other than primary, each state is responsible for determining which locations will receive grants
What is required for a project to be eligible for AIP money?
must be aligned with plans of planning agencies, money must be available, project completed without undue delay, airport must be in the NPIIAS, involves more than $25,000 in funds, APL must be current and depict the proposed project with FAA approval
What projects are not typically eligible for AIP money?
computers, communication systems not used for safety or security, wildlife plans, surface transpiration surveys, hangars or fuel farms at primary airports, certain FAA NAVAIDs, road construction, landscaping
What is the grant process?
- after consultation with the FAA, the airport sponsor files, prepares, and submits the grant application package
- the FAA completes its review of the package and set aside the projects funds.
- it is is in order the ADO must reserve the automated AIP system’s funds
- Upon accepting the grant the sponsor signs a variety of commitments
What is a PFC and how do they work?
Passenger Facility Charge: airports with more than 2,500 passengers annually can charge each enplaning passenger a facility charge in accordance with FAA regulations. The PFC are levied on the ticket, collected by the airlines, and forwarded tot eh airport
What are they types of bonds and how are they secured?
General Obligation: issued by sates, usually require voter approval, they levy property, sales or income tax. Advantage is they are issued at a lower interest rate
Airport Revenue and Special facility: secured by the indebted facility’s revenue
Hybrid Source: are airport revenue bonds combined with PFCs, CFC, G.O. bonds
Industrial development and exempt facility: suited to small airports. Some sort of loan structure, but allow financing at a tax-exempt rates in return for making a capital investment
What is a CFC and what is it used for?
a Customer Facility Charge are charged to rental car operators at an airport, with the monies commonly going towards landside capital improvement projects or landside-related operations and maintenance programs
What is an indirect cost?
they are incurred for a common or join purpose benefitting more than one cost objective
not readily assignable to the cost objectives specifically benefited
they are allowed only if the sponsor has an approved cost allocation plan
What is an allowable cost?
project-related administrative costs, study design and planning costs, engineering, construction design, project formulation costs, construction/equipment costs, legal fees, litigation costs, land and relocation assistance, noise compatibility projects, audits, and other costs determined by the FAA
