Title
Public Hearing for Airport 2019 General Airport Revenue Bonds and 2019 Bond Anticipation Notes
Action
Action:
A. Hold and close a public hearing related to the issuance of General Airport Revenue Bonds and Revenue Bond Anticipation Notes to provide permanent financing for projects listed below, including expenses funded with short-term construction-period financing issued in 2017, and
B. Adopt a resolution authorizing and approving the issuance of up to $235,000,000 in General Airport Revenue Bonds, and up to $145,000,000 in an Airport Revenue Bond Anticipation Note program, and calling for the execution and delivery of various documents necessary to complete the sale.
Body
Staff Resource(s):
Brent Cagle, Aviation
Robert Campbell, Finance
Explanation
§ On April 22, 2019, City Council authorized the application to the Local Government Commission for a debt issuance to fund projects in Aviation’s Community Investment Plan and to refund existing debt, and set this public hearing.
§ The 2019 General Airport Revenue Bonds (GARBs), expected to be issued in June 2019, will provide long-term financing for the following, or other similar projects, which are part of Aviation’s 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.
§ The long and short-term financing authorized by this action are secured by Airport revenue and the Airport’s signatory airlines have approved the projects.
§ A third-party completed a feasibility study to indicate that sufficient revenues are forecasted to be available to repay the debt.
§ With City Council approval, it is anticipated that the Local Government Commission will approve this debt issuance at its June meeting.
§ The current action will provide approval to the City Manager and the Authorized Officers named in the Resolution to take necessary actions to complete the financing and related documentation for the life of the debt.
Fiscal Note
Funding: Airport Debt Service Fund
Attachments
Attachment(s)
Series Resolutions