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can then be generated by a fuel flowage fee. (This fee <br /> ranges from 2 cents per gallon to 12 cents per gallon. ) <br /> 5. Contractual arrangements with the FBO should be carefully <br /> considered. Management of the airport may be included, <br /> as well as routine maintenance. A single FBO is <br /> suggested (exclusive franchise) but with a policy clearly <br /> spelled out which would mandate a second (or third) FBO. <br /> For what ever use we may wish to make of it, I have prepared <br /> some preliminary revenue projections which follow. These may prove <br /> to be reasonably accurate if the national economy continues on <br /> about its present course. The national economic health is the <br /> largest single driver of general aviation activity. <br /> ORANGE COUNTY AIRPORT <br /> REVENUE PROJECTIONS <br /> John B. Hunter <br /> June, 1987 ; August, 1987 <br /> Assumptions <br /> 1. For the foreseeable future, revenues will be generated by the <br /> following: <br /> a. Based Aircraft <br /> b. Transient fuel sales <br /> c. Fixed Base Operator ' <br /> 1. Direct Facility Rental <br /> 2 . Franchise Fee <br /> 3 . Override on Gross Sales <br /> d. County Share of airport Sales Taxes <br /> e. County Personal Property Taxes (assumed to be allocated <br /> by the county to airport account) <br /> 2. Most of the items listed in (1) above may be subsumed in a <br /> formula which is defined by six (6) identifiable types of based <br /> aircraft. These types are: <br /> a. Privately-owned single engine land aircraft (SEL) <br /> b. Single engine land (SEL) aircraft used for rental or <br /> training <br /> c. Privately-owned light twin aircraft <br /> d. Light twin aircraft used for business by corporations <br /> e. UNC light twin aircraft used by AHEC <br /> f. Turbine powered twin engine aircraft used for business by <br /> corporations (turbo-props or light twin business jets) <br /> The formula for calculating the revenue to orange County for each <br /> type of aircraft takes into account all revenue sources listed in <br /> (1) above except transient fuel sales and FB0 facility rental and <br /> franchise fee. <br /> 3 . Transient fuel sales revenue will essentially be offset by <br /> base aircraft purchasing fuel away from orange county on trips. For <br /> every category of aircraft based, the same use category based else <br /> where will offset fuel purchases on a reciprocal basis. This will <br /> not only be true to the extent that we have a smart FB0 and county <br /> fuel pricing policy which encourages transients to purchase fuel <br /> here. A small increment of fuel sales is therefore assumed. <br />