Revolving Funds for Sustainability Projects at Airports (2019) / Chapter Skim
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Pages 54-65
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54 These FAQs were developed to address specific challenges regarding revolving funds at air ports. They have been reviewed by the FAA.
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Frequently Asked Questions for Funding Airport GRFs 55 the circular flow of capital that defines the GRF is maintained. Consider which internal stake holders would handle the accounting and financial flows for the GRF including tracking the utilities' budget where project savings accrue.
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56 Revolving Funds for Sustainability Projects at Airports What Sort of ROI Will a Fund Have? GRFs collect utility savings from efficiency projects and provide reliable ROIs.
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Frequently Asked Questions for Funding Airport GRFs 57 – Install continuous metering equipment for lighting systems and controls, boiler efficiencies, indoor water risers, and outdoor irrigation (ACRP Report 139)
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58 Revolving Funds for Sustainability Projects at Airports likely to become firmly established, because they have more flexibility to finance projects and pay fund management expenses; however, the scale of the commitment limits other options for an airport. Conversely, incremental funding strategies (e.g., annual allocations from the capital budget or savings from existing projects)
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Frequently Asked Questions for Funding Airport GRFs 59 generate funding from a GRF, because it offers a simplified and dedicated source for new proj ects that are prioritized by payback performance and sustainability impact. Depending on how the GRF is structured, it may be managed by the airport as a new independent funding vehicle or as part of the operating budget.
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60 Revolving Funds for Sustainability Projects at Airports Are There Any Common Federal Funding Sources for Airports That Are Compatible with a GRF? Yes, under a savings reclamation model the operational savings resulting from projects implemented with either AIP funding or PFC funding could be used to capitalize a GRF; how ever, at this time, neither funding source is compatible with an endowmentmodelfunded GRF.
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Frequently Asked Questions for Funding Airport GRFs 61 could increase taxes or levy a new tax for the express purpose of supporting a GRF. If an airport chooses to pursue this funding option, it will need to consult with its state government.
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62 Revolving Funds for Sustainability Projects at Airports Are There Other Sources of Funding That Should Be Considered for Funding a GRF? Yes, any source of funding that could potentially be used to pay for a capital project that generates savings or additional revenue should be considered.
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Frequently Asked Questions for Funding Airport GRFs 63 If the fund is designed to maintain its size over time, then repayment ends as soon as a project cost is repaid. However, if the fund is meant to grow over time, then an airport will also have to determine how the excess savings returning to the fund will be calculated.
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64 Revolving Funds for Sustainability Projects at Airports Do Loans Made by the GRF Charge Interest? While the majority of institutions do not charge interest on loans made by the GRF, for those that do, interest rates range from 1% (University of Texas at Dallas)
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From page 65... ...
Frequently Asked Questions for Funding Airport GRFs 65 How Do Compensatory Airline Lease Agreements Affect a GRF? In a pure compensatory agreement, the airport is solely responsible for its financial risk and airport operations.
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