Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

This is a compensatory permit with no ECP provision. Airport unilaterally sets rates by City Council resolution with 30 days' notice. Airlines have consultation meeting but no approval rights over rates (Section 4.01: 'no airline approval rights over rates and charges exist'). No residual safety net or coverage requirement.

Landing Fee Methodology

Landing fees based on Certificated Maximum Landing Weight per 1,000 pounds per occurrence. Latest schedule established by City Council resolution. Payable monthly in arrears.

Terminal Rental Rate

Exclusive use terminal space charged per square foot per month based on City-established schedule. Common use areas allocated based on 20% evenly among tenants, 80% based on percentage of total deplaned passengers.

Common Use & Gate Allocation

Additional Bonds Test

Additional Senior Bonds may be issued if: (A) a Consultant certifies that Net Revenues (as adjusted) in any consecutive 12-month period of the 24 months preceding issuance were at least equal to 125% of Maximum Aggregate Annual Debt Service for all Senior Bonds (including the proposed Additional Senior Bonds) for any subsequent Fiscal Year; OR (B) a Consultant certifies that estimated Net Revenues in the first or second full Fiscal Year after completion of the Project(s) being financed will be at least 125% of Maximum Aggregate Annual Debt Service for all Senior Bonds (including the proposed Additional Senior Bonds) in such Fiscal Year, after giving effect to the proposed additional bonds and all outstanding Senior Bonds; OR (C) for completion bonds not exceeding 15% of the original bond amount for a Project, with Consultant certification that the Project nature and purpose has not materially changed, and City certification that original bond proceeds (including earnings) have been or will be used to pay Project costs, and that the proceeds of the completion bonds plus remaining Construction Fund moneys will be sufficient to complete the Project.

Rate Covenant

Net Revenues (Revenues minus Maintenance and Operation Costs), together with any Transfer (not to exceed 25% of Annual Debt Service on Outstanding Senior Bonds), must equal at least 125% of Annual Debt Service on Outstanding Senior Bonds in each Fiscal Year. PFC Revenues may not be applied to or assumed to pay Annual Debt Service on any non-PFC Eligible Portion of the Bonds. No PFC Revenues or Passenger Facility Charges may be included in Transfer. Net Revenues must also be at least equal to: (i) Annual Debt Service on Outstanding Senior Bonds; (ii) required deposits to Senior Reserve Fund or any Senior Debt Service Reserve Fund; (iii) reimbursement to any Credit Provider or Liquidity Provider; (iv) interest and principal of any indebtedness other than Outstanding Senior Bonds, including Subordinate Obligations; and (v) payments of any reserve requirement for debt service for any indebtedness other than Outstanding Senior Bonds.

Flow of Funds

All Revenues (not including PFC Revenues) are deposited in the Enterprise Fund. Application priority: FIRST, pay Maintenance and Operation Costs; SECOND, transfer to Senior Trustee for deposit in Senior Debt Service Funds for payment of principal and interest on Outstanding Senior Bonds; THIRD, transfer to Senior Reserve Fund and Senior Debt Service Reserve Funds to meet required balances; FOURTH, transfer to Subordinate Trustee for debt service on Subordinate Obligations (only if specific pledge of Net Revenues has been made); FIFTH, transfer to Subordinate Trustee for debt service reserve fund requirement for Subordinate Obligations (only if specific pledge of Net Revenues has been made); SIXTH, deposit to Maintenance and Operating Reserve Fund. All Passenger Facility Charges are deposited in PFC Account in the Enterprise Fund. On the first Business Day of each month, amounts in PFC Account are transferred to PFC Debt Service Subaccount until the amount equals PFC Interest Requirement and PFC Principal Requirement. PFC Revenues in PFC Debt Service Subaccount are transferred to Senior Trustee for deposit to Senior Debt Service Funds to pay principal and interest on PFC Eligible Portion of Bonds. After all required deposits to PFC Debt Service Subaccount are made, any remaining amounts are transferred to PFC Project Subaccount for any lawful purpose relating to the Enterprise as permitted by the PFC Act.