“We have nothing we can give to the lender in the event of a default,” Wallis said. “What [the lender] demand it, we go to our supporting municipalities and ask them to provide a moral obligation, so that they are morally obligated to cover our bill if we are not able to pay it. They are not financially obligated to do so.
Wallis said all members of the authority support the airport through quarterly payments and that the mutual agreement between the localities provides for a total of $ 200,000 in annual payments from its three members.
But Wallis said that number had been reduced to $ 150,000 per year in 2009, due to the slowing economy. As a result, Fredericksburg pays $ 21,428 per year, while Prince William pays $ 42,857 and Stafford pays $ 85,714.
The three localities form the regional airport authority of seven members. Fredericksburg has one member, Prince William County has two, and Stafford County has four.
Wallis said the partners’ moral obligation is simply a guarantee to lenders in the event the airport cannot meet its financial obligation for the new hangar. In the event that funds were needed, the airport would draw on the municipal support money still owed to cover the debt. He added that the authority will put $ 30,000 in receivership to cover any shortages rather than appealing to the obligations of the localities.