Passenger numbers are flying high at Regina’s airport as the rest of the province looks at budget lows, but the Regina Airport Authority is upset with the suggestion it should pay more in property taxes.
“We build our sidewalks. We keep them and clean them. We build our roads. We keep them and clean them. We build all the on-ground infrastructure, sewer, water, and we maintain them,” Richmond Graham, Regina Airport Authority president and CEO, said.
To help cover a $10.3 million budget shortfall, city administration is suggesting the airport authority lose its property tax exemptions.
According to a city report, Regina Airport Authority’s 2015 financial statements showed a total of $28 million in revenue and $23 million in expenses, for a net $5 million revenue over expenses. The airport saw a record 1.263 million passengers last year.
“The airport is growing. It has greater revenue. By their own admission, it has been a very successful year. So the dependence upon an exemption, should this be the basis for business operations? Good question to ask,” Mayor Michael Fougere said.
The mayor added that the city was looking at all tax exemptions in the city. “It will have an impact, we acknowledge that. What it means for the community, what it means for them, is something we’ll discuss on Tuesday night, but I want to emphasize the fact that there are many things that go into the price of a ticket, not just exemptions,” Fougere said.
Graham was at city council on Tuesday night to defend the airport’s property tax exemptions.
“We throw $2.5 million in total property taxes in from all of our tenants to the city, and we provide most of the services,” he said. “So our message to city council was, in difficult times, don’t increase the tax burden on someone you provide no services or limited services to.”
Although the airport has some of its own fire services, Graham did admit that the city provides some fire support as well as police support.
The airport doesn’t receive any money from federal, provincial or municipal governments, Graham said. “We put money into the federal and municipal coffers through taxes and leases,” he said.
“Three hundred thousand dollars for property tax exemptions, a couple hundred thousand on PST to the province, there’ll be a change to the way education tax is collected and of course that fuel tax rebate, so we’re talking north of half a million dollars,” Graham said. “You take half a million dollars, and what impact does that have on the airlines? The impact is going to be felt. We will have to look at rates and fee increases. It will affect passengers and it will affect airlines.”
Landing, parking, bridging and taxi fees could all be under consideration, he said.
Graham said the airport authority will continue talks with the city ahead of the next council meeting on April 18.
Comments