Title
Set a Public Hearing on Airport 2021 General Airport Revenue Bonds and Bond Anticipation Notes
Action
Action:
A. Adopt an initial findings resolution and authorize the Chief Financial Officer to make appropriate application to the Local Government Commission for issuance of General Airport Revenue Bonds not to exceed $500,000,000 and revenue bond anticipation notes not to exceed $300,000,000, and
B. Adopt a resolution setting a public hearing on February 22, 2021, for this financing as required by Internal Revenue Service regulations.
Body
Staff Resource(s):
Haley Gentry, Aviation
Kelly Flannery, Finance
Explanation
§ Authorize the issuance of up to $500,000,000 in revenue bonds, which is comprised of up to $250,000,000 in General Airport Revenue Bonds (GARBs) to provide permanent financing for projects listed below, including expenses funded with short-term construction-period financing issued in 2019, and up to $250,000,000 in refunding Series 2010A-B and Series 2011A-B for debt service savings.
§ This action would also authorize a new construction period financing program for up to $300,000,000 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 2021 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Capital Investment Plan:
- Terminal Lobby Expansion,
- Concourse E Expansion,
- Central Energy Plant,
- Atrium Life Safety, and
- Field Maintenance Building Renovation.
§ The 2021 Bond Anticipation Notes will provide short-term financing for the following or other similar projects:
- Concourse A Expansion Phase 2,
- Terminal Lobby Expansion,
- Terminal Lobby Roof,
- Terminal Lobby Canopy,
- North End Around Taxiway and Relocation,
- Taxiway F Extension, Deice Pad, and Taxiway South Cross Field, and
- Concourse E Dual Taxilanes.
§ 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. Action B sets a public hearing for February 22, 2021.
Fiscal Note
Funding: Airport Debt Service Fund
Attachments
Attachment(s)
Initial Findings Resolution