Ratemaking Overview

Settlement & True-Up

Not available

Landing Fee Methodology

Not specified in this terminal lease exhibit

Terminal Rental Rate

Fixed rate per square foot applied to various terminal spaces — ticket counter, back offices, BSO, hold rooms (preferential use), and lower office area

Common Use & Gate Allocation

Additional Bonds Test

May issue Additional Bonds on parity basis if (i) no default under any Bonds or Resolution, and (ii) Redemption Fund and Subordinate Bond Fund (if any) have required deposits including Bond Reserve Requirement. Additionally (except for completing capital projects <15% of original issue), either: (a) Authorized Officer certifies that for most recent complete Fiscal Year or any consecutive 12 of most recent 18 months, Net Revenues were at least 125% of Debt Service Requirements for all Bonds plus 110% for Subordinate Bonds; OR (b) Airport Consultant provides written report projecting that estimated Net Revenues for each of three consecutive Fiscal Years beginning on earliest of (A) first FY following completion/initial use of revenue-producing facilities or (B) first FY with scheduled payments, are equal to at least 125% of Debt Service Requirements for all Bonds plus 110% for Subordinate Bonds, after considering additional Debt Service Requirements. Resolution must provide for additional payments into Redemption Fund and satisfaction of Bond Reserve Requirement. For refunding <all outstanding Bonds, no certification required (except refunding Subordinate Bonds) if Debt Service Requirements in any FY after issuance do not exceed by >10% scheduled Debt Service Requirements in same FY prior to issuance.

Rate Covenant

The Authority covenants to fix and maintain rates and charges for use of the Airport to produce Net Revenues in each Fiscal Year at least equal to the sum of (i) 100% of the Debt Service Requirements for all Bonds outstanding under the Resolution for such Fiscal Year, plus (ii) the amount by which the amount on deposit in the Surplus Fund on the last day of the immediately preceding Fiscal Year was less than 25% of Maximum Annual Debt Service as of such day.

Flow of Funds

All Revenues credited to Airport Receiving Fund. Transfers in priority order: (i) Monthly to O&M Fund for next month's O&M Expenses; (ii) Reimburse County for any advances for Bond debt service; then monthly to Redemption Fund: (A) 1/6th of next interest payment (net of capitalized interest and investment income) and (B) 1/12th of next principal payment; (iii) If deficiency in Bond Reserve Account, deposit amount equal to deficiency; (iv) If Term Bonds, credit to Term Bond Sinking Fund Account amounts required for next Mandatory Redemption; (v) If Subordinate Bonds issued, set aside monthly in subordinate bond fund per authorizing resolution; (vi) Money remaining at end of Fiscal Year after satisfying requirements may transfer to Surplus Fund. Profit/interest income on Receiving Fund, O&M Fund, and Redemption Fund deposits to Receiving Fund.