Ratemaking Overview

Settlement & True-Up

Not available

Landing Fee Methodology

Not available

Terminal Rental Rate

Not available

Common Use & Gate Allocation

Additional Bonds Test

The Authority may issue Additional Authority Bonds payable from and secured by a lien on Net Revenues on parity with the Authority Revenue Bonds, except with respect to the Revenue Bond Reserve Fund, upon satisfaction of the following conditions: (a) No Default — certification that the Authority will not be in default upon issuance; (b) Proper Fund Balances — certification that the Revenue Bond Interest and Principal Fund and any Revenue Bond Reserve Fund account will contain required amounts; (c) Historical Coverage on Outstanding Authority Bonds — certification that for the most recent complete Fiscal Year or any consecutive 12 out of the most recent 18 months, Net Revenues, together with monies in the Coverage Fund, but less any deposits to the FF&E Reserve Fund, were equal to at least 125% of the Debt Service Requirement for all Authority Revenue Bonds for such period (without taking into account the Debt Service Requirement for the proposed Additional Authority Bonds); (d) Coverage for Additional Authority Bonds — either (i) certification that for the most recent Fiscal Year or any consecutive 12 months out of the most recent 18 months, Net Revenues, together with monies in the Coverage Fund, but less any deposits to the FF&E Reserve Fund, were equal to at least 125% of the Debt Service Requirement for all Outstanding Authority Bonds, including the proposed Additional Authority Bonds in any future Fiscal Year; or (ii) a report of an airport consultant setting forth projections indicating that estimated Net Revenues, less any deposits to the FF&E Reserve Fund, for each of three consecutive Fiscal Years beginning on the earlier of (A) the first Fiscal Year following the estimated date of completion or (B) other specified date, will be equal to at least 125% of the Debt Service Requirement for all Authority Revenue Bonds, including the proposed Additional Authority Bonds.

Rate Covenant

The Authority covenants to fix, charge, impose and collect rentals, rates, fees and other charges for the use of the Airport System sufficient to provide Net Revenues for each Fiscal Year equal to the larger of (i) all amounts required to be deposited in such Fiscal Year into the Revenue Bond Interest and Principal Fund and the Revenue Bond Reserve Fund; or (ii) an amount equal to not less than 125% of the annual principal and interest due for all Authority Revenue Bonds for such Fiscal Year. For purposes of complying with the Rate Covenant, the Authority will: (a) include within Net Revenues amounts transferred or credited from the Prepaid Airline Fund; (b) exclude from interest due on Authority Revenue Bonds any interest paid from moneys in the Capitalized Interest Account; (c) include in such calculation moneys in the Coverage Fund; (d) exclude from the calculation, debt service excluded from the Debt Service Requirement by reason of the dedication of Dedicated Revenues for payment of such debt service; and (e) exclude any amounts deposited into the FF&E Reserve Fund from Net Revenues.

Flow of Funds

From Revenue Fund (Airport System Fund where all Gross Revenues are deposited), application priority: (1) Operating Expenses — Pay first; (2) Debt Service — Principal and interest (Revenue Bond Interest and Principal Fund); (3) Debt Service Reserve — Maintain required level (Revenue Bond Reserve Fund); (4) General Obligation Bonds (if any); (5) Subordinate Securities (if any); (6) FF&E Reserve Fund (for Hotel periodic renovations); (7) Operation and Maintenance Reserve Fund; (8) Renewal & Replacement Fund; (9) Coverage Fund — Build rolling coverage; (10) Capital Improvement Fund; (11) Discretionary/Prepaid Airline Fund — Airport's use per grant assurances. Monies held in the Airport System Fund are applied first to the payment of all current Operation and Maintenance Expenses and then to the Revenue Bond Interest and Principal Fund and Revenue Bond Reserve Fund in the amounts required. Although certain PFCs, CFCs and other monies may be irrevocably designated as Dedicated Revenues, such monies will not be pledged to secure Authority Revenue Bonds pursuant to such designations. The Authority may agree to hold such PFCs and other monies exclusively to pay a portion of the debt service on Authority Revenue Bonds and related Qualified Derivative Agreement payments, to the extent allowed by law. Revenues remaining after the payment of Operation and Maintenance Expenses, debt service on all Outstanding Authority Bonds, General Obligation Bonds (if any) and Subordinate Securities (if any) and other fund deposit requirements (including the Capital Improvement Fund, FF&E Reserve Fund, and Coverage Fund) are transferred to the Prepaid Airline Fund.