Ratemaking Overview

Settlement & True-Up

Annual true-up of actual costs versus estimates

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Landing fees calculated on Maximum Gross Landed Weight

Terminal Rental Rate

Terminal space rent with dedicated airline premises

Common Use & Gate Allocation

Additional Bonds Test

Streamlined test allowing issuance upon satisfaction of either (a) a historical test certified by Authority Representative or Airport Consultant showing Net Revenues for the most recent audited fiscal year or any 12 of 24 consecutive months would satisfy the rate covenant for the next 3 full fiscal years (or 2 if no capitalized interest) when considering projected debt service on the additional bonds, OR (b) a prospective test certified by Airport Consultant showing projected Net Revenues will satisfy the rate covenant for the next 3 full fiscal years (or 2 if no capitalized interest). For Refunding Bonds, must demonstrate either (i) Maximum Bond Service Requirement will not increase, or (ii) total Bond Service Charges will not increase. Completion Bonds require certification that proceeds (net of costs) will be not more than 10% of original project costs. Authority Representative must certify no default and all required payments made.

Rate Covenant

The County covenants to fix rates sufficient to yield Revenues at least equal to the greater of (i) Revenues plus Transfers sufficient to pay all Current Expenses and 125% of Bond Service Requirements (excluding certain amounts), or (ii) Revenues (without Transfers) sufficient to pay all Current Expenses and 100% of Bond Service Requirements (excluding certain amounts) and all other required payments including deposits to Reserve Account and Renewal, Replacement and Improvement Fund.

Flow of Funds

All Revenues deposited into Revenue Fund and applied monthly by the County, not later than the 25th day of each month, in the following order of priority: (1) Current Expenses for current month and Working Capital Account (up to 3 months average monthly Current Expenses per Annual Budget); (2) Interest Account for interest due on next Interest Payment Date (including certain Derivative Agreement payments, less amounts already on deposit and Capitalized Interest), divided by months remaining; (3) Principal Account during 12-month period before Serial Bond maturity, divided by months remaining; (4) Redemption Account during 12-month period before Term Bond Redemption Requirement due date, on parity with Principal Account payments; (5) Reserve Account to maintain Reserve Requirement; (6) Subordinated Indebtedness Fund for subordinated debt service; (7) Renewal, Replacement and Improvement Fund as required; (8) Airport Fund for any lawful purpose. Available Revenues, if designated, are deposited and applied according to the Supplemental Resolution establishing them.