STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: October 13, 2020
COUNCIL DISTRICT(S): All
DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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A resolution to (1) clarify the deposit and disbursement of funds from the Department of Aviation to the Love Field Airport Modernization Corporation for payment of General Airport Revenue Bonds (Series 2015 and Series 2017, referred to as GARBs); and (2) authorize the creation of two funds to be named General Airport Revenue Bonds (GARBs) Debt Service Fund and GARBs Debt Service Reserve Fund - Financing: No cost consideration to the City
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BACKGROUND
The Love Field Airport Modernization Corporation (LFAMC) has issued two series of GARBs (Series 2015 and Series 2017). The bonds were issued in accordance with an Indenture of Trust Between LFAMC and Wells Fargo Bank National Association. The Indenture provides the PLEDGED REVENUES, which consist primarily of: Net Revenues of the Airport System: Other Revenues (which are any monies, other than Net Revenues, deposited to the Pledged Revenue Fund, including any monies from the City to restore the Reserve Fund held by the Trustee, i.e., the City Debt Service Reserve Fund held by the City under the terms of the Project Financing Agreement referred to below); the funds and accounts, and investment earning in the funds and accounts, held by the Trustee; and any future sources declared to be a Pledged Revenue.
The GARBs Debt Service Fund and the GARBs Debt Service Reserve Fund will allow the Department of Aviation (DOA) to update how transfers of monies are made from DOA Net Revenues to the LFAMC Trustee for the payment of principal and interest on the GARBs. This change will better reflect the requirements of Resolution Nos. 15-1051 and 16-1794 approved on June 10, 2015 and November 9, 2016, respectively. Currently, the DOA transfers monies ...
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