20250212-006 Airport Subordinate Obligation Fund — original pdf

Backup

City of Austin Recommendation for Action File #: 25-0229, Agenda Item #: 3/6/2025 Posting Language Approve an ordinance amending the Fiscal Year 2024-2025 Aviation Department Airport Subordinate Obligation Fund Budget (Ordinance No. 20240814-007) to increase transfers in by $1,500,000 and increase appropriations by $1,500,000 for interest payments and other costs associated with the anticipated draws on the Airport System Subordinate Lien Revolving Revenue Note Program. Funding: $1,500,000 is available in the Fiscal Year 2024-2025 Aviation Department Operating Fund. Lead Department Aviation Fiscal Note Funding in the amount of $1,500,000 is available in the Fiscal Year 2024-2025 Aviation Department Operating Fund. A fiscal note is attached. For More Information: Ghizlane Badawi, Aviation, Chief Executive Officer, 512-530-8846; Rajeev Thomas, Aviation, Chief Financial Officer, 512-530-2463 Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission - February 12, 2025 Additional Backup Information: The Note Program is created to provide short-term financing to fund the Aviation Department’s Airport Expansion and Development Program (AEDP). The Note Program allows the City to issue short term notes for qualifying capital projects at the Airport, minimizing borrowing costs and providing greater flexibility to manage Airport’s cash needs. This budget amendment is to accommodate the interest payments and any unused balance fees associated with the anticipated draws on the Airport System Subordinate Lien Revolving Revenue Note Program within the Airport Subordinate Obligation Fund. The Airport System Subordinate Lien Revolving Revenue Note Program was established with Ordinance No. 20250130-013, approved on consent by City Council on January 30, 2025. The Airport anticipates executing on the Note Program in Fiscal Year 2024-2025 based on expenditures in the AEDP capital projects. The Airport Operating Fund has appropriated budget in Fiscal Year 2024-2025 for the cost of issuance, interest payments, and other associated fees. Ordinance No. 20250130-013 declares any Program Notes and the Note Program Costs to be Subordinate Obligations under the Revenue Bond Ordinances and, in accordance with Article 6 in the Ordinance, on a monthly basis the Airport will transfer funds from the Airport Operating Fund to the Airport Subordinate Obligation Fund in an amount sufficient to cover anticipated interest payments and any unused balance fees. City of Austin Page 1 of 1 Printed on 2/5/2025 powered by Legistar™