The City of Tracy owns and operates the Tracy Municipal Airport (TCY) and New Jerusalem Airport (1Q4) as an enterprise fund, meaning that operating and capital budgets are user funded through land and hangar leases, fuel sales. Some General Fund or taxpayer monies are involved to support the Airport.
The Airport is largely built with federal grant funds, issued by the Federal Aviation Administration (FAA) for eligible airfield improvements, maintenance projects, and land acquisitions. The grants are obtained from the Airport and Airway Trust Fund, which is also entirely user-funded through taxes levied on aviation fuels, passenger tickets, air transportation of goods, and the use of civil aircraft.
Upon accepting these federal grants, the City assured the federal government under Title 49, United States Code that it will agree to several grant assurances. Two of those most relevant to the operation of the airport call for the City to:
- Continue to operate the facility as a public-use airport.
- Make the airport available to the public on reasonable terms without unjust discrimination to all types, kind and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport.
The State Department of Transportation (Caltrans), Division of Aeronautics, issues an Airport Permit and assures the safe continued operation of the airport through annual safety compliance inspections.