During the Lago Vista City Council meeting on June 26, 2025, a significant discussion centered around the ongoing negotiations with the Rusty Allen Airport Property Owners Association (POA) regarding funding and operational agreements. The council is approaching its second budget cycle without a formal agreement with the airport POA, raising concerns about the potential loss of crucial funding for airport maintenance.

Councilman France highlighted the urgency of the situation, noting that without an agreement, the city risks not collecting funds that are typically used to support the airport's operations. He emphasized the need for a strategic shift, suggesting that the city align itself with the Texas Department of Transportation (TxDOT) rather than the Federal Aviation Administration (FAA) to alleviate compliance issues and expedite funding processes.

The discussion revealed a divide among council members regarding the best approach to resolving the airport's funding dilemma. Councilman Peck, representing the airport advisory board, criticized the mayor's direct communications with the FAA, arguing that it undermined the council's established communication strategy. He asserted that the advisory board had made progress in understanding the FAA's policies and that the city should focus on building a cooperative relationship with TxDOT.

As the council deliberated, it became clear that the lack of a formal agreement with the POA has led to financial strain on the city, with council members expressing frustration over the prolonged negotiations. The POA has historically contributed significant funds to the airport's maintenance, but recent tensions have complicated these contributions.

In a bid to move forward, the council agreed to revisit the issue in 90 days, aiming to have a clearer understanding of the FAA's stance on the airport's compliance and the potential for future funding. The meeting underscored the critical need for collaboration between the city and the airport community to ensure the continued operation and maintenance of the airport, which is vital for the local economy and property values.