SAA lowers mill levy, approves agreements

 

Salina, Kan., (July 22, 2010) - With both mid-year fuel sales and lease operating revenues climbing, the outlook for the Salina Airport Authority is generally positive as reflected by the July 21 Board Meeting.    

Mill Levy

The Authority's board of directors approved a resolution lowering the mill levy from 4.315 to 4.055 mills for 2011.

A lower mill levy coupled with temporary note financing will provide the Authority sufficient funds for capital improvements.  During the coming year, the Authority will seek long-term financing for priority projects including airfield improvements, a new fire station and improvements to existing buildings and hangars.  Once completed, the renovated buildings and hangars will provide opportunities for job growth.

Insurance Consulting Firm

One of the Authority's major 2010 goals is to complete a competitive selection process for property and liability insurance and broker services for 2011 coverage.  The Authority determined that contracting with a consultant, who does not sell insurance, to assist in obtaining proposals and bids would enhance the productivity and competitiveness of the 2011 premiums. 

Insurance consulting firm, Charlesworth and Associates, L.C. came highly recommended with an excellent track record.  Executive Director Tim Rogers, A.A.E., negotiated a three-year contract which will lower the Authority's first year fee from $7,495 to $6,500.

The board approved a memorandum of understanding for Charlesworth to provide property and liability insurance consulting services.  This MOU states that Charlesworth will familiarize themselves with the risks to which the Authority is exposed, develop proposal specifications including an insurance broker prequalification procedure, request proposals of insurance, evaluate the proposals offered, present results to Authority management, make recommendations to the Authority and serve as the Authority risk manager on an ongoing basis through Dec. 31, 2012.

Project Riviera

A second assignment agreement requested by JDC Developments, L.L.C., was presented to and approved by the board.  The company set up Salina Developments I, L.L.C. to hold the 6.7 acre site, construct the new freight facility and lease it to Project Riviera. 

The assignment is consistent with the common practice of creating separate entities to hold a property and lease it for a long period of time, said Manager of Administration and Finance Shelli Swanson. 

The board meeting concluded with an update by Salina Area Chamber of Commerce President and CEO Dennis Lauver, where he reaffirmed the positive outlook for the future.  Thanks to the close partnership between the City of Salina, Saline County, Salina Area Chamber of Commerce and the Salina Airport Authority the Salina Area is seeing positive growth and development.