Title
Initial Findings Resolution on 2026 General Airport Revenue Bonds and Construction Period Financing
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 $235,000,000 and construction period financing not to exceed $175,000,000, and
B. Adopt a resolution setting a public hearing on April 27, 2026.
Body
Staff Resource(s):
Haley Gentry, Aviation
Mike Hill, Aviation
Matthew Hastedt, Finance
Explanation
* Authorize 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 projects listed below, and
* Refunding up to $9 million in outstanding Series 2014A GARBs.
* 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 pro...
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