Title
Adopt an Initial Findings Resolution and Set a Public Hearing on Airport 2025 General Airport Revenue Bonds
Action
Action:
Adopt an initial findings resolution authorizing 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 $350,000,000 and setting a public hearing on April 28, 2025, for this financing as required by Internal Revenue Service regulations.
Body
Staff Resource(s):
Teresa Smith, Finance
Haley Gentry, Aviation
Matthew Hastedt, Finance
Explanation
§ This action authorizes the issuance of up to $350 million in General Airport Revenue Bonds (GARBs) comprised of the following:
- New revenue bonds up to $280 million to provide permanent financing for projects listed below, and
- Refunding of the 2014A up to $70 million outstanding General Airport Revenue Bonds.
§ The 2025 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Capital Investment Plan:
- Concourse D Renovations, and
- Fourth Parallel Runway Program.
§ Long-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