Airport leaders detail terminal expansion, runway work and active airline outreach as federal grants fund most capital costs

Interim Aviation Director Francisco Partido briefed the council on the FY2026–27 airports budget. The department proposed roughly $38.8 million in operating funds and $98.9 million in capital and debt service, reflecting the multi‑year terminal expansion project and the coming runway reconstruction. Major capital items noted include:

• Terminal expansion and final fit‑out (FAA grants and congressionally directed funds in place; a $4M placeholder remains to finish final touches).
• Runway reconstruction for primary runway (11L‑29R) scheduled for FY27 (multi‑phased, approximately $36M in one presented package).
• Planning and prior work toward an air‑traffic‑control tower replacement (site and environmental work already funded; construction would require additional federal grants).

Party and passenger notes: The airport reported sustained but slowing passenger growth compared with double‑digit rebounds post‑pandemic. International traffic showed stronger relative growth; staff continue to recruit carriers for new nonstop service (Minneapolis, Atlanta and other targeted markets), while acknowledging airlines make route decisions on commercial grounds and often keep negotiations confidential until terms are signed.

Financing: Staff emphasized the airport relies heavily on federal FAA grant support for capital projects (typically 90% of eligible costs), while operating revenues are from parking, concessions, landing fees and airline rents. The presentation flagged near‑term debt‑service obligations tied to the terminal expansion and called out the expected increase in operating costs driven by larger terminal square footage and extended hours for Customs and Border Protection (CBP) coverage.

Why this matters: The projects will increase the airport’s capacity and offer more nonstop options for Central Valley travelers, but they depend on federal grants, airline commitments and a clear runway/tower schedule. Councilmembers asked for specific follow‑ups on airport staffing levels, custodial and ARFF (Aircraft Rescue and Firefighting) staffing, and whether positions could be filled more rapidly to match the enlarged facilities.

What’s next: Staff will return with follow‑ups requested by council (detailed debt‑service timing, airport vacancies and hiring timeline, CBP hour expansion plans and the scope and cost of tower replacement) and continue air‑service outreach; councilmembers also introduced motions that could allocate additional local matching funds for projects and community priorities.