I was watching the City Council Meeting last night and Gary Rosen stated his support for the airport, but realizes that although Allegiant is great that the airport needs alot more fast (more then a name change). He tried to ask the status of any negotiations, but was not told a whole lot other then there are negotiations going on.
Councilor Rosen also brought up the fact that Year 2 of the operating agreement is coming to close and Year 3 (last year) is fast approaching, July 1st, which will in turn increase our financial burden. City Manager O'Brien responded by saying that fiscal 2007 funding from the City would only be in the area of $400,000, thanks a great deal from the added revenues provided by Allegiant (we have not seen any of these results yet). Councilor Rosen reminded the City Manager may not be included the debt service, which is 100% ours, so he believes that the true bill is more in the $1,000,000 range.
I, like Gary Rosen, believe and support the airport but like any business we need to have a grasp of the numbers. Kudos to Gary Rosen for being aware of the true cost of ORH, that we need more airlines (more so then a name change) to decrease the financial drain on the City of Worcester and that are current agreement is coming to an end fast.
Lastly just a reminder, I calculated (based on numbers from the City Auditor) that the cost of ORH for the first 6 months for fiscal 2007 was 403,257 to the City of Worcester, which included 100% of the debt service (324,517) and 15% of the 524,933 operating deficit (78,740). Keep in mind our percentage of the operating deficit (not including debt service) will increase to 35% effective July 1st, 2006 then 100% ours July 1st, 2007.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
4 comments:
As I reread the blog, I agree that the name change would be a good thing. My problem is that we have many other things that are much more inportant, like getting more airlines to ORH.
A name change may increase our exposure but not hide the fact we have one airline flying four times per week to Sanford.
Did any other councilors show support for more airlines? I also support a name change but as it stands right now it will only attract people flying from the Orlando area. We need more airlines along with a name change by 2007 to help cut the deficit and help ORH head in the right direction.
The other councilors all support the airport. Gary Rosen was the first I ever heard really ask some good questions and seems to have a very good grasp of the very financial situation at ORH. Not to mention the gravity as we move forward.
Today I have sent an e-mail and a letter to our city auditor asking for the the numbers from Jan is thru March 31st for the airport to see how much the addition of Allegiant has helped the bottom line.
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