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 Bonds may be issued for paying or providing for payment of all or a portion of the Cost of Construction of a project. Each Series must provide sufficient funds to pay the estimated Cost of Construction when combined with other legally available funds. Conditions precedent specified in the Indenture must be satisfied (details provided in Appendix B - Special Provisions for Issuance of Additional Bonds).

Rate Covenant

The Authority covenants to set rates sufficient to yield Net Revenues plus Other Available Funds at least equal to the Rate Covenant Requirement, defined as the greater of (1) 125% of Debt Service for all Series of Bonds for any Fiscal Year or (2) 100% of amounts required to be deposited into Funds and Accounts during such Fiscal Year and 100% of amounts due under any Credit Facility (other than bond insurance) and/or Reserve Credit Facility payable during such Fiscal Year. If Net Revenues plus Other Available Funds fail to satisfy the Rate Covenant Requirement, the Authority is not in default if within 60 days it obtains recommendations from an Airport Consultant and revises rates/charges and Operating and Maintenance Expenses to produce compliant revenues.

Flow of Funds

All Revenues are deposited into the Revenue Fund. On or before the last business day of each month, amounts are transferred in the following priority: (1) Operation and Maintenance Fund (1/12 of budgeted O&M Expenses); (2) Principal and Interest Fund - Bond Service Accounts (amount to equal Accrued Debt Service) and Debt Service Reserve Subaccounts (required deposits per Supplemental Indenture); (3) Subordinated Debt Fund (required amounts per Supplemental Indentures); (4) Renewal and Replacement Fund (first 24 months: 1/24 of Requirement, then 1/12 of budgeted Capital Expenditures, plus deficiency catch-up if needed); (5) Operation and Maintenance Reserve Fund (first 24 months: 1/24 of Requirement, then deficiency catch-up if needed); (6) Rebate Fund (required amounts per Supplemental Indenture). Amounts remaining after fiscal year-end may be transferred to Surplus Fund (not pledged to bonds).