Title
Public Hearing and Decision on 2026 General Airport Revenue Bonds and Construction Period Financing
Action
Action:
A. Conduct a public hearing related to the issuance of General Airport Revenue Bonds to provide permanent financing for projects listed below,
B. Adopt resolutions authorizing and approving the issuance of General Airport Revenue Bonds up to $235,000,000 and construction period financing not to exceed $175,000,000, and calling for the execution and delivery of various documents necessary to complete the sale, and
C. Adopt a budget ordinance appropriating $32,000,000 in proceeds from the debt issuance, $18,400,00 from the Airport Operating Fund, and $6,600,000 from the Airport Passenger Facilities Charges Fund to the Airport Debt Service Fund.
Staff Resource(s):
Haley Gentry, Aviation
Mike Hill, Aviation
Matt Hastedt, Finance
Explanation
§ At the March 9, 2026, Business Meeting, City Council adopted an initial findings resolution which authorized the application to the Local Government Commission (LGC) for a debt issuance to fund Aviation Capital Investment Plan projects, refund outstanding General Airport Revenue Bonds, and set a public hearing for General Aviation Revenue Bonds (GARBs) expected to be issued in May 2026.
§ This action authorizes the issuance of up to $235 million in General Airport Revenue Bonds (GARBs) comprised of the following:
- New revenue bonds up to $226 million to provide permanent financing for the projects listed below and related costs of issuance, and
- Refunding up to $9 million in outstanding Series 2014A General Airport Revenue Bonds.
§ The 2026 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Capital Investment Plan:
- Design Only Runway 18L/36R Rehabilitation, and
- Fourth Parallel Runway Program.
§ The 2026 GARBs will also be used to refinance all or a portion of the remaining outstanding 2014A GARBs if the city can achieve sufficient debt service savings.
§ This action would also authorize a new construction period financing program for up to $175 million in short-term notes to provide financing for other projects that are in the design phase; it is expected that authorization from City Council for permanent financing for these projects would be requested in two to three years.
§ Construction Period Financing, such as Bond Anticipation Note (BANs) and Commercial Paper (CP), are commonly used debt financing tools used by municipal governments to help provide short-term interim financing for capital projects.
§ The 2026 construction period financing will provide short-term financing for the following or other similar airfield, terminal, and ground transportation projects:
- Landside Master Plan projects,
- Early Bag Storage,
- Runway 18L/36R Rehabilitation,
- South Ramp Program,
- Federal Inspection Services, and
- Terminal Basement Rehabilitation.
§ The short-term construction period financing revenue BANs issued in 2023 will not be included as part of this transaction and are expected to be paid off on or before the date the 2026 GARBs are issued using Passenger Facility Charge (PFC) revenues and/or Aviation Operating funds.
§ Long-term and short-term financing authorized by these actions is secured by Airport revenue, and the Airport’s signatory airlines have approved the projects.
§ Prior to issuing this debt, a third-party feasibility study will be completed to indicate that sufficient revenues are forecasted to be available to repay the debt.
§ With City Council approval, it is anticipated that the LGC will approve this action at its May 2026 meeting.
§ Internal Revenue Service regulations require a public hearing on new, tax-exempt, debt-funded projects.
Fiscal Note
Funding: Airport Debt Service Fund
Attachments
Attachment(s)
Series Resolutions
TEFRA Notice
Budget Ordinance