Commercial Air Service Minimum Revenue GuaranteeCity of Dubuque
City Council
ACTION ITEMS # 1.
Copyrighted
December 15, 2025
ITEM TITLE:
Commercial Air Service Minimum Revenue Guarantee
SUMMARY:
City Manager recommending City Council select the January
15, 2025, service termination date with Denver Air at an
estimated cost of $215,515 for the month of January.
SUGGUESTED
Receive and File; Council
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo Commercial Air Service Minimum Revenue Guarantee
3. Written Input —Updated 12.15.25
Page 917 of 1019
THE CITY OF
DUB E-E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Commercial Air Service Minimum Revenue Guarantee
DATE: December 11, 2025
Dubuque
All -America Ciq
IIIr
II
2007.2012.2013
2017*2019
Knowing that the Greater Dubuque Development Corporation and the Dubuque Area
Chamber of Commerce were not successful in working with the business community to
raise $650,000 in matching funds for the Denver Air Minimum Revenue Guarantee
(MRG), Airport Director Todd Dalsing has been negotiating with Denver Air. They have
arrived at the following three options to be considered:
1. Denver Air terminate service on January 15, 2026: $50,000 + 1/2 January MRG
estimate at $165,515 = $215,515
2. Denver Air terminate service on January 31, 2026: $50,000 + January MRG
estimate $331,030 = $381,030
3. Denver Air terminate service on March 15, 2026 (this is the required - 90 day
notice): January, February, '/2 March MRG estimate $708,666
I respectfully recommend that you select option #1, the January 15, 2025, service
termination date at an estimated cost of $215,515 for the month of January. This allows
people who have purchased tickets beyond that date to book new flights. The non-profit
Dubuque Air has $50,030.11 to help cover this cost.
With the current MRG payments for Denver Air and the total estimate of $510,048 for
November and December the city would have $685,550.34 remaining in the amount of
city funds budgeted for the MRG after making these option #1 payments. It is important
to remember the amount of the MRG payments are at this point an estimate.
The City of Dubuque has every intention of continuing to work with the non-profit
Dubuque Air to seek commercial air service for the Dubuque Regional Airport.
I
Michael C. Van Milligle�n�
MCVM:sv
Page 918 of 1019
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
Jenny Larson, Chief Financial Officer
Dubuque Air
Page 919 of 1019
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Todd Dalsing, Airport Director
SUBJECT: Commercial Air Service Minimum Revenue Guarantee
DATE: December 8, 2025
Dubuque
*AMWb av
2007-2012.2013
2017*2019
INTRODUCTION
The purpose of this memorandum is follow-up to the December 1, 2025, City Council
meeting. At that meeting, staff provided an update on commercial air service and Denver
Air minimum revenue guarantee (MRG) providing daily air service to O'Hare (ORD)
Airport in Chicago.
BACKGROUND
The October 6, 2025, Memorandum to City Council included airport funding sources
related to commercial air service status and economic impact. An update is included in
discussion below.
DISCUSSION
Grant Funding
49 USC §47104(a) allows the Administrator to issue grants for airport planning and
development in the United States. To issue grants and operate the Airport Improvement
Program (AIP) grant program, the FAA normally needs authorization and appropriation:
Appropriation
Entitlements. The term "entitlements" refers to the passenger, cargo service, and
State Apportionments (including nonprimary apportionments when applicable)
available to sponsors and states based on formulas in 49 USC §47114.
Discretionary. The term "discretionary" refers to funds that are available for use on
eligible projects at the FAA's discretion after satisfying required apportionments.
The authorizing legislation establishes formulas and requirements for the use of
discretionary funds.
1
Page 920 of 1019
Airport Categories
Commercial Service Airports are publicly owned airports that have at least 2,500
passenger boardings (enplanements) each calendar year and receive scheduled
passenger service.
Primary Commercial Service Airports are Commercial Service Airports that have
more than 10,000 enplanements each year.
Funding: Not less than $1,300,000 or more than $22,000,000 for each fiscal
year.
Nonprimary Commercial Service Airports are Commercial Service Airports that
have at least 2,500 and no more than 10,000 enplanements each year.
Funding: Receive funding on a sliding scale that ranges from $150,000 to
$1.3 million, depending on the number of enplaned passengers ($60 for
each of the first 2,500 enplanements and $153.33 for each of the next 7,499
enplanements during the prior calendar year).
General Aviation Airports are public -use airports that do not have scheduled service or
have less than 2,500 annual enplanements.
Funding: Rank low in National Priority Ranking (NPR), limited to high safety issues,
for example runways.
Dubuque Regional Airport
The attachment titled "Current FAA Fiscal Year 2023 — 2031 Funding" provides in-depth
description of current FAA and IDOT funding.
In summary, as a nonprimary commercial service airport with 10,000 enplanements, DBQ
currently receives $1,300,000 in entitlement, along with discretionary and IDOT funds.
The received grant funding and local City match is:
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 202W
FY 2029
FY 2030
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,554
$2,903,550
$4,856,550
$4,871,040
$5,668,260
Dubuque Match
$444,848
$972,9321
$594,786
$1,003,000
$1,005,839
$430,950
$647,950
$649,560
$738,140
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,394
$3,334,500
$5,504,500
$5,520,600
$6,406,400
If DBQ loses daily scheduled service, any enplanements will come from destination
charters (currently Sun Country). If DBQ captures at least 2,500 enplanements, DBQ will
receive $150,000 in entitlement. The difference of $1,150,000 in entitlement will become
part of the local City match, along with any FAA discretionary and IDOT funds not
received:
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028`
FY 2029
FY 2030
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,554
$150,000
$150,000
$150,000
$150,000
Dubuque Match
$444,848
$972,932
$594,786
$1,003,000
$1,005,840
$3,184,500
$5,354,500
$5,370,600
$6,256,400
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,394
$3,334,500
$5,504,500
$5,520,600
$6,406,400
Sun Country currently averages 1,300 annual enplanements.
Economic Impact
2
Page 921 of 1019
DBQ Commercial Passengers: First Year Estimated Economic Impact & ROI
2025 Est Passengers
7,231
2022 Econ Ontat Per Passenger
$2,201
Inflation 2022-25 2025 Economic Impact
1.13 $17,985,727
2025 AIRG Investment
$3,660,556
2025 Economic Impact
$17,985,727
2025 ROI to One
5
DBQ Commercial Passengers: Forecast Estimated Economic Impact & ROI
_ natial 6.5% Load Factor
11,700
2022 Econ Oatat Per Passenger Inflation 2022-25 65% Loads Economic Impact
$2,201 1.13 $29,101,508
6-5% Loads DIRG Investment
$1,500,000
2025 Economic Impact ROI to One
$29,101,508 19
Current Enplanement and MRG Funding Data
DENVER AIR ENPLANEMENTS
2024
2025
January
382
February
412
March
531
April
459
May
630
June
595
July
640
August
694
September
767
October
786
November
461
600*
December
476
Yearly Totals
937
5,896
*November 2025: Out of 30 calendar days, there were 28 scheduled flight days due to holiday, and
weather impacting ORD/DBQ operations, resulting in reduced enplanement numbers.
Minimum Revenue Guarantee MRG
Invoice
Est. Funds
Needed
A&ctual
Payment Details 1W
November 2024
$276,608.03
SCASD
December 2024
$260,321.95
SCASD
January 2025*
$361,762.02
SCASD
February 2025
$326,687.00
SCASD
March 2025
$312,362.41
SCASD
April 2025*
$333,773.15
SCASD
May 2025
$363,468.77
SCASD $28,485.44 + Travel Dubuque $334,983.33
June 2025
$282,811.29
Travel Dubuque ($165,016.67) + Economic Development Revenue
Guarantee $117,794.62
July 2025*
$325,015.06
Economic Development Revenue Guarantee
August 2025
$237,762.97
Economic Development Revenue Guarantee
September 2025
$235,434.77
Economic Development Revenue Guarantee
October 2025*
$288,394.24
Economic Development Revenue Guarantee ($30K less than
estimate
November 2025
$255,024.00
Forecast DAC Invoice
December 2025
$255,024.00
Forecast DAC Invoice
January 2026*
$331,030.00
Forecast DAC Invoice
February 2026
$262,304.00
Forecast DAC Invoice
March, 16 2026
$115,332.00
Forecast DAC Invoice
December 16 - March 16, 90 day notice ='/2 March estimate
$1,218,714 $3,604,401.66
*Five Weeks
3
Page 922 of 1019
Fund
Balance
SCASD $1.9M
$0.00
Travel Dubuque $500,000
$0.00
Dubuque Count $100,000
$100,000.00
Economic Development Revenue Guarantee $2.4M
$1,195,598.34
Business Community Fundraising
$ December 10, 2025
$1,295,598.34
At the Tuesday, December 2, 2025, Airport Commission meeting, the Commission
authorized the Airport Director to continue communications with Denver Air regarding
minimum revenue guarantee status and coordinate with the City Council to invoke
contractual actions required per agreement.
Denver Air proposes 3 options to discontinue service:
1. January 15, 2026: $50,000 + '/2 January MRG estimate at $165,515 =
$215,515*
2. January 31, 2026: $50,000 + January MRG estimate $331,030 = $381,030*
3. March 15, 2026 (90 day): January, February, '/2 March MRG estimate
$708,666*
*The MRG estimates are likely to go higher as people learn of the end of service, and are
then more likely to book their travel at surrounding airports.
0
Page 923 of 1019
Current FAA Ftscal Year 2023 - 2031 Funding
TOTAL FUNDING
FY 2023
FY 2024
1 FY 2025
1 FY 2026
1 FY 2027
1 FY 2028*
1 FY 2029
1 FY 2030
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,5541
$2,903,5501
$4,856,5501
$4,871,0401
$5,668,260
Dubuque Match
$444,848
$972,932
$594,786
$1,003,0001
$1,005,8391
$430,9501
$647,9501
$649,5601
$738,140
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
1 $9,083,394
1 $3,334,500
1 $5,504,500
1 $5,520,600
$6,406,400
GRANT FUNDING BREAKDOWN
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028*
FY 2029
FY 2030
FY 2031
AIP Entitlement
$1,000,000
$1,000,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
AIP Discretionary
$2,746,059
$4,426,392
$2,840,503
$7,353,000
$6,244,994
$1,303,550
$3,256,550
$3,271,040
$4,068,260
AIP BIL ATP
$1,346,112
AIP BIL AIG
$84,407
$2,430,000
$1,516,500
AIP Environmental
$232,560
IDOT AIP
$400,000
$329,600
$400,000
$300,0001
$300,000
$300,0001
$300,0001
$300,000
Local Match - DBQ
$444,8481
$972,932
$594,786
$1,003,000
$1,005,8391
$430,9501
$647,9501
$649,5601
$738,140
Total
$5,621,4261
$9,229,324
$5,064,889
$11,572,500
$9,083,3941
$3,334,500
$5,504,5001
$5,520,6001
$6,406,400
PROJECT SUMMARY
Funding Source
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028*
FY 2029
FY 2030
FY 2031'
Reconstruct Taxiway A (6 Phases)
AIP
$3,746,059
$5,426,392
$4,031,053
$8,603,000
$7,544,995
$2,028,000
Local Match (DBQ)
$374,000
$602,932
$500,386
$437,000
$804,999
$192,000
Solar Photovoltaic System (2 Phases)
AIP
$1,430,519
$780,300
Local Match (DBQ)
$70,848
$86,700
Reconstruct General Aviation Apron (2 Phases)
AIP
$2,430,000
$1,566,500
IDOT
$400,000
$400,000
Local Match DBQ
$370,000
$566,000
Update Airport Pavement Management System &
PCR Calculations
AIP
$109,450
$90,000
Local Match DBQ
$12,000
$10,000
AFFF Transition
AIP
$232,560
Local Match DBQ
$25,840
West Side Development
AIP
$485,550
$575,550
Local Match (DBQ)
$53,950
$63,950
SRE - Rotary Plow with Carrier Vehicle
AIP
$1,035,000
Local Match (DBQ)
$115,000
Taxiway D Extension
AIP
$2,946,000
Local Match (DBQ)
$294,000
Taxiway
AIP
$3,581,040
$4,587,960
Local Match DBQ
$364,560
$476,440
ARFF Truck
AIP
$990,000
Local Match DBQ
$329,600
_
$110,000
Runway Markings Improvements
IDOT
$82,400
Local Match (DBQ)
T-Hangar Apron Rehabilitation (5 Phases)
IDOT
$300,000
$300,000
$300,000
$300,000
$300,000
Local Match (DBQ)
$175,0001
$175,000
$175,000
$175,000
$175,000
Totall
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,3941
$3,334,500
$5,504,500
$5,520,600
$6,406,400
Approved Funding
Funding Pending En lanements and Application
*FAA Reauthorization Year
Note: The local match (DBQ) is based on various factors. Some AIP projects require 5% match, and others require 10% match. Also, some projects have ineligible costs (such as reconstruction of
Taxiway A and the general aviation apron) which affects the total local match required.
5
Page 924 of 1019
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Sunday, December 14, 2025 10:25 AM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #228728] (Contact City Council) -
Dubuque, IA
Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender
information and password over email! Report
Dubuque, IA
A new service request has been filed.
ID 228728
Date/Time 12/14/2025 10:25 AM
Type Contact City Council
Address Dubuque
Origin Website
Comments You all killed it - air service. With your constant
threats to cancel air service you chased away
potential flyers. People didn't want to make a
reservation in fear that there wouldn't be a plane.
Submitter Giesler, Mary J
2310 High Cloud
Dubuque, IA 52002
563-583-8778
janicegiesler2020@gmail.com
Dubuque, IA
1
Page 925 of 1019
kP,'V3r
AIIIIIIIIIIIIIIIF A61f
An
AMU
Dubuque Mayor and City Council
City of Dubuque
50W 1311 Street
Dubuque IA 52001
Monday December 1511, 2025
RE: DBQ Air Committed to Local Air Service
Dear Mayor and Council Members,
On behalf of DBQ Air thank you for your steadfast support in our mission to secure daily
commercial air service for Dubuque. Though we recognize the present challenges, it has
only served to strengthen our resolve in this continued fight. Reliable commercial air
service is so much more than a convenience... it is a critical driver of economic growth,
business development, quality of life enhancements and regional competitiveness.
Denver Air Connection has been nothing short of an exceptional partner, and it has been an
honor to work with them. If the contract with DAC must end at this time, we want to assure
you that our relationship will not. In keeping with our mission, we will keep the door and
Lines of communication open for future collaboration with DAC and all possible airlines.
We want to make it very clear that DBQ Air is committed to continuing the fight for
sustained commercial air service for our region. If our current air service must end, your
continued advocacy is vital as we shift our focus to new avenues to achieve this goal. We
will pursue every option, deliver every message, and seek every creative solution to secure
equitable access for Dubuque.
With your continued leadership we can make our case and protect the economic future of
our region and create the air service connection to the rest of the world that our residents
need and deserve. Thankyou for all you have done, and all you will continue to do, to help
us in this cause.
Sincerely,
Page 926 of 1019
Adrienne Breitfelder
Subject: FW: Daily.flights
From: Chavenellestudio <gail@chavenellestudio.com>
Sent: Wednesday, December 3, 2025 8:36 AM
To: Brad Cavanagh <Bcavanagh@citvofdubuque.org>
Subject: Daily.flights
[You don't often get email from Bail - chavenellestudio.com. Learn why this is important at
https://aka.ms/LearnAboutSenderidentification ]
Caution! This message was sent from outside your organization. Never give your login information and password
over email!
I just wanted to add our voices to those who feel that daily air flight to and from Dubuque is most important! We
read in today's TH how they probably will be canceled. We feel this is a great error and urge the council to make
such fiscal arrangements that will keep daily flights serving Dubuque.
Thank you for your attention,
Gail and Bill
Gail Chavenelle and Bill Dicken
1155 Kelly Lane
Dubuque Iowa 53003
Chavenelle Studio Metalworks
https://us-west-
2.protection.sophos.com?d=chavenellestudio.com&u=d3d3LmNoYXZIbmVsbGVzdHVkaW8uY29t&i=NWY2MjY3
MTkwYTc2Yj4wZWMONWYONGVm&t=dDZQWU11 NGR4N210RVVoQOUwdVFMbzZ3NjNod3JVVVcOY31xVWVsUGkx
bz0=&h=9226d7ae0ddb4d5c88944d451 cb41 b4b&s=AVNPUEhUTONFTkNSWVBUSVa98xMSFjMTLRcN-rcKO-
3N[BWKyslhV1 HlvQ4Mpp7Hyw
Cell 563 599 6372
Page 927 of 1019
Adrienne Breitfelder
Subject: FW: requesting a responce
From: Adrienne Breitfelder <Abreitfe@cityofdubuque.org>
Sent: Wednesday, December 3, 2025 5:14 PM
To: Adrienne Breitfelder <Abreitfe@cityofdubuque.org>
Subject: FW: requesting a responce
On Dec 2, 2025, at 4:28 PM, yfiink@aol.com wrote:
You don't often get email from yfiink@aol.com. Learn why this is important
Caution! This message was sent from outside your organization. Never give your login
information and password over email! Allow sender I Block sender
Please stop wasting my hard earned tax money on the failed airport deal
On Monday, September 29, 2025 at 08:20:49 PM EDT,yfiink(aD-aol.com
<yfiink(aDaol.com> wrote:
Dear Mr Sprank
I want to know .... How did the auto renew clause for Denver Air get by you,
the city manager, the city attorney, all the city hall bureaucrats' and the other
members of the council?
Sincerely
Joel Pusateri
Page 928 of 1019
Adrienne Breitfelder
From:
Adrienne Breitfelder
Sent:
Wednesday, December 3, 2025 5:13 PM
To:
Adrienne Breitfelder
Subject:
FW: Airport
From: Brian Klinkner <brianklinkner270@gmail.com>
Date: December 2, 2025 at 10:35:49 AM CST
To: Danny Sprank <Dsprank@cityofdubuque.org>
Subject: Airport
You don't often get email from brianklinkner270@gmail.com. Learn why this is important
Caution! This message was sent from outside your organization. Never give your login
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Hi Dan, I live on Sapphire Circle in Dubuque. I do not feel it is fair to the taxpayers of
Dubuque to fund and economically failing airline just to serve a few select people. I realize
the funding is needed for maintenance on the airport, but that only serves very elite private
plane owners. Thank you for serving us,your constituents. respectfully .Brian Klinkner
Page 929 of 1019
November 19, 2025
Dear Councilman Sprank,
My husband grew up on Windsor Avenue,. We lived on East 30th,. We raised our
children on Edith Street. We were members of Sacred Heart parish for many years.
I know the North End. I lived in it.
I understand some citizens not wanting to support air service because they don't use
it. There are many things I don't use that are paid with my taxes.
I am an 80 year old widow. I do't drive anymore; I am unable to use or enjoy many of
the events and places in the city. My taxes pay for many city parks including Comisky
Park, the swimming pools, the ice rink, hiking and biking trails, Multiculturall Center
Dubuque Harbor and Marina, the Jule„ the downtown parking ramps and more.. We
paid school taxes even though we sent our children to the Catholic schools in Dubuque
(no vouchers). I don't have any children or grandchildren in our schools.
I need air service from Dubuque. There is no rail service. There is no efficient bus
service. My family lives in the Chicago area. To me, this is a life event. I have used
Denver Air and I will continue to use it. Our family has always supported the LOCAL
Dubuque Airport.
We can't choose precisely where our tax money will go. We are a community. We
support each other
There are other individuals, ordinary citizens in the city that need air service. And I bet
some of them live in the North End.
Sincerely,
Mary Janice Giesler
2310 High Cloud Dr
Dubuque, IA. 52002
Page 930 of 1019