Austin-Bergstrom International Airport

Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

No ECP provision described. Document states agreements 'will generate sufficient revenues to meet operations and maintenance needs and debt service requirements' but this appears to be airport management projection, not a contractual airline obligation.

Landing Fee Methodology

Landing fees assessed to passenger and cargo carriers for use of airfield areas (runways and taxiways). Cargo carriers have MAG based on percentage of total airfield cost, with actual landing fees offsetting MAG obligation.

Terminal Rental Rate

Rates, fees, and charges assessed for terminal areas (ticketing, gates, baggage areas, operational space and offices) and apron areas (passenger boarding bridges, aircraft parking positions, equipment storage). Signatory passenger airlines have MAG based on percentage of total rents/fees/charges, with actual payments offsetting MAG.

Common Use & Gate Allocation

Additional Bonds Test

Additional Revenue Bonds may be issued if: (a) City Manager and Aviation Director certify no default will exist after issuance; (b) Chief Financial Officer certifies Debt Service Fund and Debt Service Reserve Fund will have required amounts; and (c) either: (i) Airport Consultant certifies estimated Net Revenues plus Other Available Funds for three consecutive fiscal years (beginning in the earlier of first FY after completion of revenue-producing facilities or first FY with scheduled debt service payments) will equal at least 125% of Debt Service Requirements on all Revenue Bonds including the Additional Bonds, or (ii) Chief Financial Officer certifies Net Revenues plus Other Available Funds for the most recent complete FY or any consecutive 12 of most recent 18 months were at least 125% of maximum Debt Service Requirements after taking the Additional Bonds into account. For refunding bonds only, if aggregate Debt Service Requirements do not exceed prior aggregate Debt Service Requirements and annual debt service does not vary by more than 10% between fiscal years, the coverage certifications are not required.

Rate Covenant

Net Revenues (Gross Revenues minus Operation and Maintenance Expenses), together with Other Available Funds, must equal the larger of: (i) all amounts required to be deposited in the Fiscal Year to the Debt Service Fund, the Debt Service Reserve Fund, the Administrative Expense Fund, and to any debt service or debt service reserve fund for Subordinate Obligations, or (ii) 125% of Debt Service Requirements for Revenue Bonds plus 100% of anticipated and budgeted Administrative Expenses. Debt Service Requirements are calculated net of PFCs appropriated and deposited into dedicated funds for debt service payments.

Flow of Funds

Gross Revenues deposited into Revenue Fund are applied in the following priority: (1) Operation and Maintenance Expenses; (2) Debt Service Fund for Revenue Bonds and Credit Agreement Obligations (other than swap termination payments); (3) Administrative Expense Fund; (4) Debt Service Reserve Fund to maintain required balance; (5) Renewal and Replacement Fund ($5,000,000 annual requirement); (6) Capital Fund; (7) PFC amounts set aside for PFC-eligible debt service; (8) Operation and Maintenance Reserve Fund (held in Revenue Fund); (9) Funds and Accounts for Subordinate Obligations (including Termination Payments); (10) Funds and Accounts for General Obligation Airport Bonds; (11) Remaining amounts to Capital Fund (minimum capital reserve) and then for lawful Airport System purposes.