Est. Revenue: (2011/12 Budget) - $412k

Source:

1. Hangar Rental - $212k

2. A&M Aviation - $67k

3. Restaurant - $21k

4. A&M Maintenance - $20k

5. Tie-Down paved - $19k

6. Special Events - $19k

June 26, 2011

By Rhonda Reed-Slaughter

rhonda@thenumbercrunchers-bolingbrook.com

Every year in June, Clow International Airport, a Village-owned property, host the Calvacade of Planes.  According to it's website, the event "attract thousands of aviation enthusiast" and feature sky-diving demos, plane rides, food and live entertainment.

The Calvacade of Planes - is one of a variety of ways Clow International Airport generate revenue. 

Consider the other attractions at Clow:

• Charlie's Restaurant
• Illinois Aviation Museum
• A&M Aviation FBO
• Charter Services

Technically, any revenue generated by the airport should cover it's cost. 

Unfortunately, as previously reported, Clow International Airport has suffered chronic losses since the Village of Bolingbrook purchased the airport in 2004. 

At the 2011/12 budget meeting in April, the management company (DePaulo) publicly announced the airport generated a net profit in 2010/11 and estimates a net profit for 2011/12.  Mayor Claar and the Village board was in agreement.

We believe the Village and management company are excluding depreciation and interest from the calculation.  In essence, giving the appearance of profitability.

Final check

We discussed this issue with a representative from the Governmental Accounting Standards Board (GASB), and feel very comfortable in our belief that whenever Mr. DePaulo and Village officials make public statements regarding Clow International Airport's net income/(loss), they should report net income/(loss) AFTER depreciation and interest. 

To exlude them is misleading.

As taxpayers, we need to be honest about our local government, and ask the tough questions.  One being, whether Mayor Claar and the Village Board are being fiscally responsible in their dealings with Clow Airport, Bolingbrook Golf Course, etc. 

Taxpayers have already absorbed more than $12 million in combined losses from both investments.

CLICK TO VIEW CLOW AIRPORT RESULTS

CLICK TO VIEW BB GOLF COURSE RESULTS

As a taxpayer, where do you draw the line when it comes to the chronic losses at Clow Airport and Bolingbrook Golf Course? 

click to share your comments

FOLLOW THE MONEY SERIES

December 23,2010

By Rhonda Reed-Slaughter

In 2004, the Village board approved the purchase of Clow International Airport from Joe De Paulo.  De Paulo's management company signed a 3 year contract with the Village, and serves as manager today.

In fact, recently, the Village board approved $129,792 in management fees for fiscal year 2010/11.

According to the Village Annual Financial Report for fiscal year 2004, the Village issued $12 million in General Obligation Bonds to purchase the airport.  The $12 million bonds are to be paid with property taxes. 

Clow International Airport, a Village-owned property has struggled to generate a profit since purchased by 'taxpayers' in 2004.

Check out the annual losses generated since the Village purchased the property.

2004     $  (    1,377)

2005         (322,266)*

2006         (699,543)

2007         (  85,056)

2008             44,795

2009         (147,224)

* excludes $3.8 million transfer-out.

Fiscal year 2010 'audited' results have not been made public by the Village.  We will report the findings as soon as they are made available.

The airport's budget for fiscal year 2010/11 is $438,000 with 48% of the revenue coming from hanger rentals ($212k).

Here's what makes up 90% of the revenue -  

Hanger Rental    $  212k      48%

A&M Aviation           66k      15%

Fuel                           35k         8%

Interest Income         30k         7%

Special Events Inc.   24k        5%

Restaurant                 21k        5%

A&M Maint.                  9k        4%

Now lets move on to expenses. 

There are 4 major categories.

Contract Svc - Admin.   $ 218k

Contract Svc - Oper.        119k

Reserves - Oper.                76k

Airport Special Events       25k

Take a peek at what makes up 60% of the expenses -

Management Fees       $129k    30%

Property Maint.                  72k    16%

Bldg. Maint.*                      38k       8%

Special Events                  25k       6%

*Building/Runway/Equipment

No surprise.  Yet again, 50% of the budget is spent on administration cost.  If you zero-in on administration cost, you will see that 30% of the cost is strictly management fees ($129k).

As a resident of Bolingbrook, what would you recommend the Village board do with Clow International Airport?

Imagine how many public safety jobs could have been saved if the Village never purchased Clow International Airport to begin with?

Let us know what you think.  Take our poll.