Springfield, IL. (ECWd) –
Following up on our article related to the aircraft fuel sales tax in Springfield, Illinois, and the FAA’s requirement of airport-related use of those tax funds not grandfathered in (the increase of sales taxes), the Springfield Airport Authority’s attorneys sent a memorandum to the city of Springfield in 2016 explaining the consequences of diversion of those sales tax revenues.
As we noted in a previous article, this appears to be headed for litigation between the airport and the city of Springfield.
Some of the listed consequences are:
- maximum $50,000 civil penalty to the airport
- civil penalties equaling three times the diverted revenue (the airport claims as much as $800K has been diverted)
Other types of revenue diversion include:
- making airport facilities available to the community, local government, or other non-airport use for less than fair market value
- making airport facilities available at no charge to other units of local government
- undocumented airport expenditures or failing to collect revenue
- using airport funds for off-airport development projects
- not documenting sources or use of funds
- leasing non-aeronautical property at less than fair market value
The deadline for compliance was December 8, 2017. It has come and gone without compliance, according to the airport authority.
John KPosted at 11:01h, 05 January
The next Springfield City Council meeting after the December 8, 2017 deadline was December 19, 2017. The minutes reflect the City Council went into Executive Session to discuss “pending and probable litigation pursuant it to 5ALCS1202CL of the Illinois Open Meetings Act.” Was it to discuss the deadline? Did the Airport Authority followup? Seems some more FOIAs are needed, particularly about the Airport Authority’s followup.