Title
Public Hearing on Airport 2025 General Airport Revenue Bonds
Action
Action:
A. Conduct a public hearing related to the issuance of General Airport Revenue Bonds to provide permanent financing for projects listed below, and
B. Adopt resolutions authorizing and approving the issuance of General Airport Revenue Bonds up to $350,000,000 and calling for the execution and delivery of various documents necessary to complete the sale.
Body
Staff Resource(s):
Haley Gentry, Aviation
Teresa Smith, Finance
Matthew Hastedt, Finance
Explanation
* At the February 24, 2025, Council Business Meeting, City Council adopted an initial findings resolution which authorized the application to the Local Government Commission (LGC) for a debt issuance to fund Aviation Capital Investment Plan projects and to refund outstanding General Airport Revenue Bonds and set a public hearing for General Aviation Revenue Bonds (GARBs) expected to be issued in May 2025.
* 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.
* With City Council approval, it is anticipated that the LGC will approve this action at its May 2025 meeting.
* Internal Revenue Service regulations require a public hearing on new, tax-exemp...
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