SUBJECT:
An Ordinance relating to the issuance of Airport System Revenue Obligations and providing for the security and payment thereof; determining that such Ordinance be deemed the Master Ordinance; Approving other related procedures and provisions; and making certain findings and other declarations necessary and incidental thereto.
RECOMMENDATION:
Approve an Ordinance relating to the issuance of Airport System Revenue Obligations and providing for the security and payment thereof; determining that such Ordinance be deemed the Master Ordinance; Approving other related procedures and provisions; and making certain findings and other declarations necessary and incidental thereto.
SPECIFIC EXPLANATION:
The Finance Working Group (the “FWG”) is recommending the adoption of this ordinance for the purpose of incorporating the common provisions and covenants contained in the prior ordinances relating to Airport System debt into a master ordinance (this “Master Ordinance”) and to provide for the issuance from time to time of additional senior lien, subordinate lien and inferior lien obligations secured by and payable from the Net Revenues of the Airport System pursuant to one or more ordinances supplemental to this Master Ordinance.
This framework will allow for authorizing future bond issuances through supplemental ordinances adopted from time to time by City Council, each containing the specific authorization for the future financing without the need to repeat the common provisions applicable to all Airport System bonds.
The FWG is presenting this ordinance at this time given the separate ordinance also before City Council related to bank facility changes in the Series A and Series B Commercial Paper Program.
Recommendation
This transaction was presented to the Budget and Fiscal Affairs Committee on April 5th 2016.