TURNERS FALLS — With anticipated revenue from a solar project not yet in play, the Turners Falls Municipal Airport is facing a $122,000 budget shortfall for fiscal year 2024, according to Airport Manager Bryan Camden.

The airport had planned to have solar arrays installed on the property, a project that would create $151,962 in revenue through a lease agreement with the solar developer. According to the request for proposals (RFP) issued last March, the minimum considered bid for a property lease was $2,550 per acre, with an increase of 3.5% every fifth year.

However, the planned solar development is constrained by utility company costs and policy regarding interconnections. Given prohibitive costs, Camden said, the solar project is now not expected to happen in the coming years.

“It was the lack of availability for the local utility provider to allow the project to move forward at the rate we were expecting,” Camden explained to the Montague Selectboard on Tuesday. “My duties for the next year will be to strictly increase our revenue to alleviate some concerns for the FY25 budget.”

A contingent lease for the project was signed last summer, and the airport’s budget was created with the expectation that the solar project would begin in 2023. When the company found the project could cost as much as $16 million, and received high prices to connect to Eversource’s electrical grid, the project was put on hold. As a consequence, the airport is expected to face drastic revenue shortfalls for the next two fiscal years.

This is a common issue with solar projects as much of the outdated electric infrastructure in Franklin County cannot handle the energy load of larger solar arrays. Those involved with the project now hope to change its scope to be less cost-prohibitive.

The airport budget totals $426,965, with the highest portion of costs coming from labor and benefits ($178,591). Minimal cuts can be made to the budget this year, Camden explained, saying that the airport has already spent 65% of its allocated budget.

He said he cannot cut staffing hours because staff perform much-needed maintenance that would prove more costly if left undone. Camden went on to say that the airport is already operating with minimal staffing while continuing to ensure compliance with state regulations.

“We put state standards in jeopardy if we reduce funds,” he said. “We need to look at funding from other sources.”

Additionally, over the past year, the airport accrued $20,000 of unexpected building maintenance costs. Camden said $10,000 of that total can be covered by surplus line items in the budget.

Although the total shortfall for FY24 is $152,000, Camden identified other funding sources could reduce that deficit to $122,000. In FY25, a $104,850 shortfall is anticipated.

Using American Rescue Plan Act (ARPA) funding to help cover the shortfall is also a possibility as Montague has $220,000 that must be allocated by the end of the year. However, Selectboard members said they are resistant to using ARPA funds for this project and instead are interested in using stabilization funds.

“Town Meeting needs to understand the challenge that’s here,” said Selectboard Chair Rich Kuklewicz.

The Selectboard plans to bring the matter to the Finance Committee, followed by Special Town Meeting voters. The Special Town Meeting is scheduled for March 14.

Reach Bella Levavi at 413-930-4579 or blevavi@recorder.com.