To say the city of Hannibal has money burning a hole in its pocket would be inaccurate. However, it does have some cash it must spend by the end of September or lose.
Because the dollars are part of the city’s annual airport entitlement from the Federal Aviation Administration (FAA), the money must be spent on airport-related projects, according to airport consultant Brian Garkie of Crawford, Murphy & Tilly.
In recent years the city has annually received $150,000 from the FAA. With the 2013 entitlement due later this year, the city must utilize its 2010 money or lose it.
It is anticipated that in the neighborhood of $100,000 will be spent this year on an environmental survey, a preliminary step toward expanding the runway from 4,400 to 5,500 feet. That will leave the city with approximately $50,000 more to spend by Sept. 30.
“You need to identify another project,” Garkie told members of the Airport Advisory Board during its Wednesday morning meeting at Hannibal Regional Airport.
Garkie suggested a handful of potential projects that would come close to using the remaining money - expanding the terminal’s parking lot; putting down pavement in an area where a new hangar will likely be built in the future; repairing concrete joints on the runway; and re-painting guide marks on the runway.
“Any of these would be a good, small project that would allow you to use up your entitlement money for 2010,” said Garkie.
Any project that is selected would require a 5 percent local match. In addition, a 5 percent will be needed when the city gets around to using its 2011 entitlement money. The local match will increase to 10 percent when the 2012 funds from the FAA are utilized.
Much of the future entitlement money will be spent to extend the airport’s runway, which will occur over the next few years. Last October, Garkie estimated the runway extension will cost neighborhood of $5 million.
According to Garkie, the environmental study will take around a year to complete. The acquisition of property will take up from six months to a year. The earth work could require as much as a year. The paving part of the project will likely take six months.
The city’s local match for the environmental study is reportedly included in the 2012-13 city budget.