Juggling finances at Mammoth Airport, Town of Mammoth officials hope to keep paying on short-term loans to meet obligations for building at the airport.
When the Town of Mammoth Lakes remodeled the airport terminal in 2008, they were forced to take out short-term notes to finance the endeavor. Long-term financing was not available to the Town because of the pending Hot Creek litigation. The short-term notes were set up to roll over each year. At the May 20 Town Council meeting, Finance Director Brad Koehn explained that the first roll over would occur on June 30, 2009. The notes would be replaced with new short-term notes on July 1, 2009.
The June 30 note is for $2 million dollars. The Town has spent $70,000 on payments toward this note. Fifty-five thousand dollars of that amount went to interest, and the remaining $15,000 paid down the principle. Therefore, the new July 1 note will be approximately $1,985,000.
The Town hopes that they will garner the 10,000 enplanements needed to collect $1 million from the Federal Aviation Administration in the 2009/10 fiscal year, which would give them that $1 million to pay down next year’s note.