Cincinnati/Northern Kentucky International Airport

Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Not available

Terminal Rental Rate

Not available

Common Use & Gate Allocation

Additional Bonds Test

Two-part test: (i) Historical test — Net Revenues for any 12 consecutive months out of most recent 18 months ≥ 125% of maximum aggregate annual Principal and Interest Requirements with respect to all Outstanding Bonds plus proposed Series; OR (ii) Consultant certificate showing (A) Net Revenues for last audited FY or any 12 out of most recent 18 months ≥ 125% of aggregate annual Principal and Interest Requirements for such period, and (B) estimated Net Revenues for first full FY through later of (fifth full FY after issuance or third full FY with no capitalized interest) ≥ 125% of Principal and Interest Requirements for each such FY. Consultant may adjust Revenues for approved rate increases, new facilities, Other Available Revenues. Plus (iii) certificate of no Event of Default. Exceptions for completion bonds (≤15% of original par) and refunding bonds (reduce total DS or NPV savings).

Rate Covenant

Net Revenues plus Carryover Amount (which may not exceed 25% of Principal and Interest Requirements) ≥ 125% of Principal and Interest Requirements on all Outstanding Bonds for that Fiscal Year. Net Revenues = Revenues minus O&M Expenses, where Revenues include operating revenues but exclude certain items (PFC unless designated, CFC unless designated, capital grants, bond proceeds, unrealized gains, certain federal payments unless specified, released revenues, termination payments from counterparties). O&M Expenses exclude depreciation, amortization, debt service, capital expenditures, extraordinary items from early debt extinguishment, expenses funded by grants or non-Revenue sources, losses from valuation changes on swaps/investments.

Flow of Funds

All Revenues deposited into Revenue Fund by 20th day of each month, applied in priority order: (1) O&M Fund — sufficient for next month's O&M Expenses; (2) Bond Fund Interest Account — sufficient to pay interest due on Outstanding Bonds; (3) Bond Fund Principal Account — sufficient to pay principal due on Outstanding Bonds; (4) Bond Reserve Fund — 1/12 of Reserve Requirement Deficiency until Reserve Requirement met; (5) Subordinate Bond Fund (if any) — principal and interest on Subordinate Bonds; (6) Subordinate Bond Reserve Fund (if any); (7) O&M Reserve Account — 1/12 of Current Year Operating Increment plus 1/12 of withdrawals in preceding 12 months until reserve met; (8) Repair and Replacement Fund; (9) General Purposes Fund. Designated PFC Revenues deposited into separate Designated PFC Revenue Account, transferred to PFC Interest/Principal Subaccounts, with excess transferred to PFC Project Fund at end of FY.