HomeMy WebLinkAboutFederal Aviation Administration
Augusta Richmond GA
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U.S. Department
of Transportation
Federal Aviation
Administration
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Airports District Office, FAA
Campus Building
1701 Columbia Avenue, Suite 2-260
College Park, Georgia 30337-2747
(404) 305-7150 FAX.: (404) 305-7155
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The Honorable Larry E. Sconyers
Mayor of Augusta
Municipal Building, Room 806
530 Green Street
Augusta, Georgia 30911
Dear Mayor Sconyers:
Thank you for your September 2, 1997, letter concernmg the resolution of the revenue
diversion issue.
We understand your concern that any agreements have the Office of Inspector
General's (OIG) concurrence. Please be assured that we work very closely with the OIG and
agreement on our part for the Federal Government will be with their full concurrence.
We; ~an:igr~~: to':the' City's: proposal to repay the $1,868,660 over a 5-year period, with the
initial payment on the prinCipal or: $373,732 made to the :Airport Revenue Fund before
January 31, 1998. We can also agree to your proposal to repay $274,881 to the Bond Sinking
Fund within 15 days after approval of the City's proposal.
You are correct that interest on these amounts must be repaid and that the Federal Aviation
Administration and the OIG have not furnished you with a specific interest calculation. It is
our understanding that Mary Williams of the Airports' staff worked with the OIG on this
matter and develop~d an intef~st calcu1.a.ti9Il that was acc~ptable 1.0 the FAA and the OIG.
Our responsibility in the matter of interest is to assure that the airport does not suffer a
financial loss as a result of the diversion. We suggest that you propose an interest calculation
to us. Such a proposal could be the one developed by Ms. Williams or something similar,
utilizing normal investment practices and approximating what the airport would have earned on
the diverted amount. This would account for the period starting when the funds were first
diverted until now. We would expect the City to utilize a similar scenario using the current
investment rate when'repayiiig tlie pririCipal.()y"er'a' 5-year period'.:' We would also be receptive
to a propos'ai"from you on. thisp'rcin;': :' :.'~rI, L!. ,'(;;!~r".: ': ;""\ :. .:'.1' ;:> ,'. ,.'
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Thank you again for bringing this matter closer to resolution. We hope to have the audit
report to you within the next 30 days. There are several other issues, other than revenue
diversion, that were discussed at the DIG's exit briefing. They will be included in the audit
report. We will continue to work with the City for a timely resolution of these issues.
Sincerely,
cc:
Mr. AI McDill
Mr, Charles Oliver
Partners in creating tomorrow's airports
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