Phoenix Sky Harbor International Airport

Ratemaking Overview

Settlement & True-Up

Not available

Landing Fee Methodology

Not available

Terminal Rental Rate

Not available

Common Use & Gate Allocation

Additional Bonds Test

Additional Junior Lien Obligations may be issued if either (1) an officer of the City certifies that either the Designated Revenues of the most recently completed fiscal year for which audited financial statements are available or the Designated Revenues for 12 consecutive months out of the most recent 24 calendar months, (a) were equal to at least 110% of the actual debt service on outstanding Junior Lien Obligations during such period and (b) would have been at least equal to 110% of Maximum Annual Junior Lien Debt Service for all Junior Lien Obligations to be outstanding, including the obligations proposed to be issued, or (2) a Consultant provides a report which projects that Designated Revenues in each fiscal year will equal at least 110% of the debt service on Junior Lien Obligations to be outstanding, including the obligations proposed to be issued, which report addresses the period of time beginning with the first full fiscal year following the issuance of the Junior Lien Obligations through the later of (a) three fiscal years following the expected date of completion of the proposed project or (b) five fiscal years following the issuance of the Junior Lien Obligations. The Consultant's report may reduce assumed debt service by applying a Passenger Facility Charge Credit or a Junior Lien Passenger Facility Charge Credit, if applicable. Additionally, Junior Lien Obligations may be issued for refunding purposes without compliance with any of the foregoing financial tests if certain other conditions are met. Additional Senior Lien Obligations may be issued if (1) an officer certifies that either the Net Airport Revenues of the most recently completed fiscal year or the Net Airport Revenues for 12 consecutive months out of the most recent 18 calendar months, together with Other Available Funds deposited to the Bond Fund during such period (a) were equal to at least 125% of the actual debt service on outstanding Senior Lien Obligations during such period and (b) would have been at least equal to 120% of Maximum Annual Debt Service for all Senior Lien Obligations to be outstanding, including the obligations proposed to be issued, and (2) a Consultant provides a report which projects that Net Airport Revenues in each fiscal year will equal at least 125% of the debt service on Senior Lien Obligations to be outstanding through the later of (i) three fiscal years following the expected date of completion of the proposed project or (ii) five fiscal years following the issuance of the Senior Lien Obligations. Senior Lien Obligations may be issued for refunding purposes without compliance with financial tests if Maximum Annual Debt Service immediately after issuance is not greater than 110% of Maximum Annual Debt Service immediately prior to issuance.

Rate Covenant

Junior Lien Rate Covenant: The City covenants to establish, maintain and enforce schedules of rates, fees and charges sufficient to produce Designated Revenues at least equal to 110% of the annual debt service requirements of Junior Lien Obligations (net of Other Available Funds deposited in the Bond Fund in such fiscal year and net of any Junior Lien Passenger Facility Charge Credit applicable in such fiscal year), and sufficient to produce any required payments to the Junior Lien Bond Reserve Fund or any separate reserve fund. Senior Lien Rate Covenant: Net Airport Revenues at least equal to 125% of the annual debt service requirements of Senior Lien Obligations (net of Other Available Funds and net of any Passenger Facility Charge Credit applicable to Senior Lien Obligations in such fiscal year), and sufficient to produce any required payments to any debt service reserve fund established for Senior Lien Obligations.

Flow of Funds

All Airport Revenues deposited into Revenue Fund held by the City. Application priority: (1) Operation and Maintenance Fund — pay Cost of Maintenance and Operation; (2) Senior Bond Fund — monthly deposits equal to 1/12 of next principal requirement and 1/6 of next interest requirement on all Senior Lien Obligations, transferred to paying agents at least one business day before debt service payment; (3) Senior Lien Obligation Bond Reserve Funds — amounts required to maintain reserve; (4) Junior Lien Bond Fund — monthly deposits equal to 1/12 of next principal requirement and 1/6 of next interest requirement on all Junior Lien Obligations; (5) Junior Lien Obligation Bond Reserve Funds — amounts required to maintain reserve; (6) Airport Improvement Fund — for Aviation CIP Projects or other lawful airport purposes; (7) Junior Subordinate Lien Obligations — payment of Junior Subordinate Lien Obligations. PFC Revenues are deposited into a separate PFC Revenue Fund and applied first to PFC Interest Account and PFC Principal Account for certain designated Junior Lien Obligations during the Commitment Period ending June 30, 2026. 2010 RZEDB Subsidy Payments are irrevocably committed to interest on Series 2010B Junior Bonds.