Title
Set Public Hearing for Airport 2019 General Airport Revenue Bonds and 2019 Bond Anticipation Notes
Action
Action:
A. Adopt an initial finding resolution and authorize the Chief Financial Officer to make appropriate application to the Local Government Commission for issuance of General Aviation Revenue Bonds not to exceed $235,000,000 and revenue bond anticipation notes not to exceed $145,000,000, and
B. Adopt a resolution setting a public hearing on May 28, 2019 for this financing as required by Internal Revenue Service regulations.
Body
Staff Resource(s):
Brent Cagle, Aviation
Robert Campbell, Finance
Explanation
§ Authorize the issuance of up to $235,000,000 which is comprised of $115,000,000 in General Aviation Revenue Bonds (GARBs) and up to $120,000,000 in refunding General Aviation Revenue Bond Anticipation Notes to provide permanent financing for projects listed below, including expenses funded with short-term construction-period financing issued in 2017.
§ This action would also authorize a new construction period financing program for up to $145,000,000 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 2019 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Community Investment Plan:
- East Terminal Expansion,
- Terminal Rehabilitation,
- Concourse A North Expansion,
- Concourse E Expansion,
- Runway 18L/36R Rehabilitation and Taxiway C7 Removal,
- Vehicle Maintenance Facility,
- Terminal Fuel Farm Expansion, and
- Concourse A Renovation Fueling.
§ The 2019 Bond Anticipation Notes will provide short-term financing for the following or other similar projects:
- Concourse A Expansion,
- Terminal Lobby Expansion,
- Terminal Lobby Canopy,
- Customs and Border Protection Renovations,
- North End Around Taxiway and Relocation,
- Taxiway F Extension, Deice Pad and Taxiway South Cross Field,
- West Ramp Expansion and Fuel Station,
- Centralized Receiving and Distribution Center,
- Concourse E Expansion, and
- Joint Operations Center.
§ The federal Internal Revenue Service Department requires a public hearing on new, tax-exempt, debt-funded projects. This action will set a public hearing for May 28, 2019.
§ The long and short-term financing authorized by this action are secured by Airport revenue. 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.
§ The debt issuances must be approved by the Local Government Commission (LGC). This action authorizes the City to submit an application for the issuances to the LGC for approval at its June meeting.
Fiscal Note
Funding: Airport Debt Service Fund
Attachments
Attachment(s)
Initial Findings Resolution