Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

No ECP provision. Compensatory methodology — airport bears risk for revenue shortfalls, retains surplus for discretionary airport-related uses.

Landing Fee Methodology

Landing fees are set annually by OAA Board resolution using a compensatory/cost-based methodology. Landing fee rate for 2024 is $3.743 per 1,000-pound unit.

Terminal Rental Rate

Terminal rental rate for finished space is $110.76 per square foot (2024 rate). Airlines lease space on exclusive use or preferential use basis. Common use gates available for per-turn fees.

Common Use & Gate Allocation

Additional Bonds Test

To issue additional parity Bonds: (a) Authority must not be in default; and (b) satisfy one of: (1) Authorized Representative certificate that Net Revenues in the completed Fiscal Year immediately preceding issuance were not less than the larger of (A) amounts needed for required deposits or (B) 125% of [(i) Annual Debt Service on Outstanding Bonds (disregarding refunded Bonds) + (ii) Maximum Annual Debt Service on additional Bonds]; OR (2) Airport Management Consultant certificate that projected Net Revenues will satisfy rate covenant (disregarding refunded Bonds) for each of next three full Fiscal Years following issuance, or through two full Fiscal Years following Project completion, whichever later (with provisions for Maximum Annual Debt Service >110% and capitalized interest); OR (3) For refunding Bonds, either (1) or (2) is satisfied, or Authorized Representative certificate that (A) aggregate Annual Debt Service after refunding is less than before in each Fiscal Year, and (B) Maximum Annual Debt Service after does not exceed before.

Rate Covenant

The Authority covenants to fix and adjust fees and charges to produce Net Revenues at least sufficient to provide for the larger of: (i) amounts needed for required deposits to Principal Account, Interest Account, Sinking Fund Account, Reserve Fund, and Junior Lien Obligations Fund; or (ii) an amount not less than 125% of the Annual Debt Service with respect to Bonds for such Fiscal Year. Net Revenues = Revenues - Operation and Maintenance Expenses. Designated CFC Revenues and Designated PFC Revenues deposited into Bond Fund are credited against debt service payments, thus reducing Annual Debt Service in the calculation.

Flow of Funds

On the first day of each month, all money in Revenue Fund is allocated in following priority: (1) Operation and Maintenance Fund - current month's O&M Expenses; (2) Bond Fund - monthly deposits to Interest Account, Principal Account, and Sinking Fund Account such that balances on next Payment Date are sufficient for debt service (credits for accrued/capitalized interest and Designated PFC/CFC Revenues); (3) Reserve Fund - deposits to each Account until Reserve Requirement met; (4) Junior Lien Obligations Fund - required deposits per Junior Lien Resolutions; (5) Capital Improvement and General Purpose Fund - all remaining amounts.