April 25, 2019

Minnesota Airport Conference - 2019

Airport 101 –Capital Improvement Program (CIP)

Presentation Panel• Pam Schroeder

Fillmore County Airport

Highway/Airport Office Manager

507-765-3854

• Dan Boerner, P.E.

MnDOT Office of

Aeronautics

Central Region Engineer

651-234-7244

• Jake Martin, P.E.

FAA Dakota Minnesota

Airports District Office

North Program Manager

612-253-4634

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Capital Improvement Program (CIP)• A program used to plan for the projects at the

airport which are eligible and justified for federal or state funding

• Project must be included on the CIP to be eligible for state and/or federal funding

• Include 20 years of projects on your CIP• Each CIP should be reviewed and/or updated

every year• Organizes buckets of funding available for

airport projects

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What to include on your CIP:• Year project is expected to occur (state fiscal

year)• Project description, include federal fiscal year

in project description if anticipating federal funding

• Type of project• Total cost of project• Funding split

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Calendar Years• Federal fiscal year:

October 1 – September 30• State fiscal year:

July 1 – June 30• Local fiscal year

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Airport Classification• National Plan of Integrated Airport Systems

(NPIAS) (Federal Airport)– Receive federal funding for eligible and justified

airport projects– To be considered for the NPIAS:

• 10 based aircraft• Greater than 30 miles from another NPIAS airport

– Also receive state funding for airport projects• State Airport

– Receive state funding for eligible and justified airport projects

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Types of Federal Funding• Entitlement Funding

– General Aviation Airports - $150,000 per year– Entitlement transfers

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Types of Federal Funding• State Apportionment

– Federal funding, given to the State to use, but the FAA is involved in deciding which project receives this funding

• Discretionary – Left over entitlements– High priority projects – runways, taxiways, etc.– Late grants! Usually received in September

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State Funding

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State Funding• http://www.dot.state.mn.us/aero/airports.html

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Other types of State Funding• Hangar Loan Program• Maintenance and Operations (M & O)• State Bonding Bill

– Infrastructure improvements, typically every other year (even years)

– Requires agreement from MN House, Senate, and Governor

• Miscellaneous Grants– Department of Employment and Economic

Development (DEED)– IRRRB Grants

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Local Funding• Local tax dollars• Revenue from airports

– User fees– Ramp/tiedown fees– Landing fees– Fuel flowage fees– Land leases and City-owned hangar rent– Agricultural/farming– Mineral rights– EDA participation

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Capital Improvement Plans (CIP)• Used for Large Scale Organizational Funding

– NPIAS Snapshot – October 31– MnDOT Funding – February 1

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5 Tips from MnDOT Aeronautics:1. The calendar is the hardest part to figure out when dealing with the CIP. There is the calendar year,

the State Fiscal Year, and the Federal Fiscal year, and none of them are the same. Develop your own calendar to figure out what the timing should be for putting stuff on your Airport’s CIP.

2. If you are looking for Federal Discretionary or FAA State Apportionment funding, your projects should be on the CIP 4 or 5 years prior to when you are looking for funding.

3. Have your Federal projects updated in the CIP program by October 30 of each year. Have your State Projects updated in the CIP by February 1 of each year. If you want a State only grant during a State fiscal year, have it entered into the CIP program by the first of February preceding that fiscal year.

4. In the CIP program, enter the “CIP Program Year” as the State Fiscal Year in which you are seeking a grant, regardless of whether it is a Federal Grant or a State Grant. For Federal grants make the State Fiscal Year one higher than the Federal Fiscal Year. If you are seeking a grant in Federal Fiscal year 2025, then enter the “CIP Program Year” as 2026. At the end of the project name, add this “(FFY 2025)”. In the CIP program, enter the “project type” as the type that best fits your project. The default “project type” is “Access Road”, and Access Roads score a low priority rating.

5. If you have a project on your CIP in the current fiscal year, and you have not been notified by January 1 that your project has made the cut, modify your CIP to move that project into the next fiscal year so it can be reconsidered.

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5 Tips from the FAA:1. Define the project and understand how it may compete with other

projects.a) Consider: What airport component is it (Rwy, Twy, Apron, Building, etc.) and

is it minor rehab (crack sealing), major rehab, complete replacement, or constructing new.

2. Plan early and review your Master Plan and ALP. a) Consider: Confirm with FAA PM proposed project location still makes sense if

your ALP is older.3. Have appropriate justification for the 1 to 4 year CIP projects

a) Consider: There is high demand for FAA Discretionary and State Apportionment funds which requires updated and accurate justification.

4. Talk early with your designated FAA staff (Planner, EPS, and PM) as soon as you “think” you may do a projecta) Consider: There are many unique situations that impact your project timing

and timing is impacted by a CATEX vs. EA. 5. A minimum of 3 years before “implementing” for other than entitlement

funds.a) Consider: “The Devil is in the Details” and there may be considerations that

could drastically affect your projects viability or timing.

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Things to consider:• What environmental work needs to be completed

before you can begin your project?• What is your local funding balance needed for the

project and what year will it be available?• Have you presented your project to the decision

makers for support and approval?• Is MnDOT and FAA aware of your project? • What type of funding can you use for your project?• Ensure your airside needs will be met for the next

three years if you would like to start a landside project (hangar, fuel system, Snow Removal Equipment building).

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Another example – 20 year CIP

3 session takeaways1. Contact your MnDOT and FAA representatives early

and often for airport projects.2. Involve the local airport committee and board early to

demonstrate the need and economic benefit of the local airport. Give them a vision so they can begin to designate funds for the local share of project costs.

3. In order to build a better foundation for Congress, it is important for every airport in the state to develop a 20-year CIP.

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Questions?