Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Airfield cost center net of non-airline revenues divided by estimated landed weight

Terminal Rental Rate

Terminal cost center allocated by rentable square footage

Common Use & Gate Allocation

Additional Bonds Test

Two-part test: (i) Certificate from Independent Airport Consultant stating projected Senior Lien Revenues and Other Available Moneys will satisfy Rate Covenant for each of the next three Fiscal Years following issuance (or through two years after project completion if later), with Other Available Moneys limited to amounts either (A) already deposited with Trustee or (B) irrevocably pledged to debt service; OR (ii) Certificate stating Senior Lien Revenues and Other Available Moneys in most recent audited Fiscal Year satisfied Rate Covenant assuming Aggregate Senior Lien Debt Service includes maximum Annual Senior Lien Debt Service on proposed Additional Senior Lien Obligations. Completion Obligations and Refunding Obligations have separate, less restrictive requirements.

Rate Covenant

The City covenants to fix and establish rates and charges so that in each Fiscal Year Senior Lien Revenues, together with Other Available Moneys deposited with the Trustee and any cash balance in the Revenue Fund on the first day of the Fiscal Year not required for other deposits, will be sufficient to: (i) pay Operation and Maintenance Expenses for the Fiscal Year; and (ii) provide for the greater of (A) amounts needed to make required deposits into Senior Lien Debt Service Fund, O&M Reserve Account, Working Capital Account, Common Debt Service Reserve Sub-Fund, Junior Lien Obligation Debt Service Fund, Repair and Replacement Fund, and Special Project Fund, or (B) prior to end of FY 2025, 120% of Aggregate Senior Lien Debt Service for the Bond Year commencing during such Fiscal Year; after FY 2025, 125% of Aggregate Senior Lien Debt Service for the Bond Year commencing during such Fiscal Year.

Flow of Funds

All Senior Lien Revenues collected by City. First, monthly deposits to O&M Fund (1/12 of O&M Expense Projection). Remainder deposited to Revenue Fund with Trustee. From Revenue Fund on 10th of month: (1) Senior Lien Debt Service Fund, (2) O&M Reserve Account (1/12 of requirement = 1/6 of annual O&M Expense Projection), (3) Working Capital Account (currently suspended). On 15th of month: (1) Common Debt Service Reserve Sub-Fund (1/12 to reach requirement) and individual series DSRF if applicable, (2) Junior Lien Obligation Debt Service Fund (1/12), (3) Repair and Replacement Fund (1/12), (4) Emergency Reserve Fund (1/12), (5) Special Project Fund, (6) Airport Development Fund. Year-end excess balances transferred to Revenue Fund.