Title
Adopt an Initial Findings Resolution and Set a Public Hearing on Airport 2023 General Airport Revenue Bonds and Bond Anticipation Notes
Action
Action:
A. Adopt an initial findings resolution and authorize the City Manager, or his designee, to make appropriate application to the Local Government Commission for issuance of General Airport Revenue Bonds not to exceed $550,000,000 and revenue bond anticipation notes not to exceed $280,000,000, and
B. Adopt a resolution setting a public hearing on August 28, 2023, for this financing as required by Internal Revenue Service regulations.
Body
Staff Resource(s):
Teresa Smith, Finance
Haley Gentry, Aviation
Matthew Hastedt, Finance
Explanation
§ Authorize the issuance of up to $550,000,000 General Airport Revenue Bonds (GARBs) to provide permanent financing for projects listed below, including expenses funded with short-term construction-period financing issued in 2022, and refinance outstanding General Airport Revenue Bonds.
§ This action would also authorize a new construction period financing program for up to $280,000,000 in short-term notes to provide financing for other projects that are in the design phase; it is expected that permanent financing for these projects will be secured in two or three years.
§ The 2023 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Capital Investment Plan:
- Concourse A Expansion Ph II,
- Fourth Parallel Runway Program
§ The 2023 Bond Anticipation Notes will provide short-term financing for the following or other similar projects:
- Concourse D Renovations,
- Fourth Parallel Runway,
- North End Around Taxiway Program,
- Taxiway F Extension, Deice Pad, and South Cross Field Taxiway
- Concourse E Renovations
- Concourse D-E Connector
− South Ramp Expansion
− Decommission Runway 5/23
− Concourse E Mezzanine
§ Long 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.
§ Debt issuances must be approved by the Local Government Commission (LGC). Action A authorizes the city to submit an application for the issuances to the LGC for approval.
§ 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)
Initial Findings Resolution