STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 12, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Government Affairs
EXECUTIVE: T.C. Broadnax
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SUBJECT
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A resolution authorizing amendments to the Dallas Fort Worth International Airport Master Bond Ordinance, the 65th and 66th Supplemental Concurrent Bond Ordinances - Financing: No cost consideration to the City
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BACKGROUND
The Dallas Fort Worth International Airport Board ("the Board") requests the owner cities of Dallas and Fort Worth to approve a Supplemental Concurrent Bond Ordinance ("SBO") to facilitate the Airport's financing needs.
The Airport has an opportunity to refinance airport revenue bonds to lower debt service payments in the future. The Airport Board is requesting the Owner Cities of Dallas and Fort Worth to approve the issuance of airport revenue bonds in an amount not to exceed $2.305 billion. Debt issued for DFW Airport is repaid from airport funds. The Owner Cities of Dallas and Fort Worth have no financial liability for these bonds.
DFW anticipates passenger traffic exceeding pre-pandemic levels, and with a busy summer ahead, plans to take action in preparation for the increased customer loads. The Airport is seeking authority to: (i) refund existing bonds, Subordinate Lien Bonds and outstanding commercial paper; and (ii) potentially issue new money bonds to finance Terminal C and other aging infrastructure, assuming market rates are favorable.
DFW plans on refinancing about $255 million of Alternative Minimum Tax debt that is callable and $825 million of tax-exempt debt callable in August 2023 in four separate transactions.
DFW expects to save approximately $80 million in debt service over the life of the bonds due to these refinancing. This ordinance also allows for the possible redemption of $275 million of commercial paper and the issuance of an incremental $1 ...
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