7. How is JAA financially managed?

JAA is a body politic and corporate created as an agency and political subdivision of the State of Florida in the nature of counties and not municipalities, as set forth as Laws of Fla., Ch. 2004-464.  It is user supported and receives no general tax dollars from the City of Jacksonville.  Much like a private sector company, JAA must take in enough money each month to pay its bills or it could go bankrupt.  Neither the city nor the state is required to step in and pay JAA’s bills.  Thus, all users of JAA’s four airports (Jacksonville International Airport, Cecil Airport, Jacksonville Executive at Craig Airport and Herlong Recreational Airport) are charged fees for that use.  This includes tenants such as airlines, concessionaires, vehicle parkers, companies that lease land and buildings from JAA, and others.  JAA receives grants from the federal and state governments to construct projects at its four airports, for which JAA makes certain grant assurances or covenants, including but not limited to preserving its “rights and powers” and not engaging in “unlawful revenue diversion.”  These grants come from funds that users have paid into the system from taxes on aviation fuel and airline tickets.  The positive cash flow that JAA generates is put into either capital projects or JAA’s reserve funds.

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