TITLE
Recommendation to receive supporting documentation into the record regarding the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing;
Adopt resolution authorizing the expansion of the City’s existing commercial paper program to permit the issuance of City Subordinate Airport Revenue Commercial Paper Notes in an amount not to exceed $30,000,000; approving related documents, authorizing and directing execution thereof and authorizing actions related thereto; and
Increase appropriation in the Airport Enterprise Fund (EF320) in the Public Works Department (PW) by $15,000,000. (District 5)
DISCUSSION
In 2004, the City Council approved the Airport Commercial Paper Notes Program of $15,000,000 for short-term financing of Airport capital projects. A Commercial Paper Notes Program is a short-term financing tool that enables the City to draw down funds as needed for approved capital projects. Low, variable-rate interest is paid on the outstanding notes. The Commercial Paper Notes have various maturities up to a maximum of 270 days. Since Commercial Paper Notes are short-term, they are anticipated to be eventually paid off through a combination of cash and/or possibly long-term bonds. The purpose of the Commercial Paper Program is to provide the City's airport operation with short-term borrowing to cover cash-flow shortages as the airport undertakes approved rehabilitation and maintenance projects. This original $15,000,000 is committed for airfield pavement projects under contract scheduled for completion in Fiscal Year 2009.
On April 24, 2007, the City Council authorized staff to proceed with the initial design of airport terminal facilities and a new, on-site parking structure. Approximately $2 million has been spent for design to date. The proposed increase to the Commercial Paper Program from $15 million to $30 million will provide short-term funding for the continuation of the design and planning work for the terminal and parking structure pr...
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