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CHAPTER 13. RNANcuL AND EcoNoNnc PLANS All of the airport facilities are eligible for funding by the Federal Aviation Administration through Airport Improvement Program (AIP)grants. These grants provide funding for 90 percent of the cost of the projects. All of the projects included in the Development Cost Estimates are eligible for these grants. As long as there are no commercial airlines operating at the airport, the airport is also eligible for 4%z percent of development cost grant from the State of California Division of Aeronautics. _ E : Once airline operations begin at the airport these State grants are no longer available but the airport can institute Passenger Facility Charges (PFCs) which would generate significant income. Currently PFCs can be charged up to $3 per passenger and these facility. charges can be used to meet debt payments on municipal bonds. Municipal bonds can be used for financing major projects. When the new terminal and/or air cargo facilities are required the Airport will have the capability of charging not only for the use of the building and other facilities, but for..landing fees as well as Passenger Facility Charges. The Airport should be considered as a .public utility facility, which generates significant taxes and provides many benefits to the community. Local funding should be made available not only to match the Federal and State grants but to provide for the orderly development of the airport. All of the land on the airport that is proposed for commercial/industrial use can be leased and the ! return from these leases must be returned to the Airport for airport development. Once all the available land is leased for commercial/industrial, warehouse use and the airline and air cargo facilities are in place, it is expected that the Airport will be self sufficient. 13-1 L ;