ITEM NO. ___7a Supp______
DATE OF
MEETING: __May 11, 2010___

Intermediate Lien Revenue Bonds,
Series 2010

May 11, 2010

Topics
Overview
Refunding Candidates
New Funding for Airport Projects
Schedule



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Overview
Staff will be requesting Commission authorization for the sale and
issuance of Intermediate Lien Revenue Bonds, Series 2010
Bonds will be used to:
Refund existing debt at lower interest rates for interest cost
savings
Fund Airport capital spending for various renewal and
replacement projects pursuant to the approved capital budget
Bonds are expected to fund or refund approximately $300-$550 mil.
Refunding amount varies $153 - $385 million depending on
which bonds are included for refunding
New funding estimated at $150 million
Bonds will be issued on the Port's Intermediate Lien which is
targeted for Airport capital

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Port Revenue Bond Lien Structure

First Lien
Port Gross Revenue 
Primarily for non-airport
funding
Legal coverage 1.35x                      O&M Expense              Tax levy treated as
an offset to O&M. 
Actual coverage strengthened
due to reduced usage
Port policy is to maintain           Revenue Available for Debt Service 
coverage of at least 1.8x
Intermediate Lien (introduced
2005)                                          First Lien 
Primarily for airport funding
Legal coverage 1.25x (from a
Open Lien(s) 
combination of cash flow and
cash reserves);
Subordinate Lien                                                 PFC's used to pay
Intermediate Lien 
Target for variable rate funding
debt service may be
used as an offset. 
Includes CP program
Legal coverage of 1.00x                    Open Lien(s) 
calculated net of prior lien
debt service
Subordinate Lien 
4

Refunding Candidates
As part of the Port's on-going debt management, staff reviews
opportunities to refund existing debt at lower rates
Two series of bonds will be refunded
Both are currently callable, First Lien Revenue Bonds
Originally funded Airport projects
Port policy requires minimum savings of 3% to refund
Bond Issue     Par Value      Savings     Savings       Final
Rate *      Amount *      Maturity
2000B          $128 mil.       6.1%      $7.8 mil.       2024
1998A          $25 mil.        8.8%      $2.2 mil.       2017
TOTAL       $153 mil.               $10.0 mil.
* Savings rates and amounts estimates based on current market. Amount is the present value

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Other Potential Refundings
Other potential refunding candidates are:
First Lien Revenue Bonds, Series 2001B
Estimated savings is only 1%, does not yet meet the target
Passenger Facility Charge (PFC) Revenue Bonds, Series 1998A&B
Bonds are secured solely by PFC revenues
Staff is reviewing options to refund as either PFC bonds or include in
the 2010 Intermediate Lien Bonds
Subordinate Lien Revenue Bonds, Series 2005
Variable rate bonds backed by a letter of credit (LOC) that expires
August, 2010
Staff is reviewing options for replacing the LOC or refunding with fixed
rate bonds included in this bond issue
Staff will update Commission on the inclusion of any of the above

6

New Funding for Airport Projects
The 2010-2014 Plan of Finance was presented to the Commission
November 10, 2009
Airport Funding Plan is based on the capital program and operating
budget (and related forecast) approved by the Commission as part
of the budget process
The Plan is developed with strict adherence to financial
management policies
Airport debt service coverage of 1.25x
Airport minimum operating fund balances equal to 10 months
operating and maintenance expenses
The Plan funds $1.076 billion in Airport capital spending 2010-2014
Includes future bond funding for $444 million of capital spending
Airport cash is also a significant funding source - $218 million

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Aviation Capital Funding 2010-2014
2010-2014
($mil.)
Aviation CIP
Committed                                      587 
Business Plan Prospective                                 489 
TOTAL                                        1,076
Aviation Funding Sources
Net income and operating funds                         218 
Tax levy (1)                                                          11
Grants                                                  63
Passenger Facility Charge                                   61
Customer Facility Charge (2)                                 236 
Existing revenue bond proceeds                           43
Future bond proceeds                                  444 
1,076
(1) Highline capital spending (excludes expense spending funded by tax levy)
(2) Includes proceeds of CFC-paid bonds
Source: Commission presentation November 10, 2009
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Bond Funded Projects
Airport capital plan assumes need for new bonds beginning in 2011.
Issuance in 2010 expected to provide lower cost of debt due to "AMT
window" in Economic Stimulus Bill
Private activity bonds can be issued free from the Alternative
Minimum Tax (AMT)
unique opportunity scheduled to terminate end of 2010
In current market this window means approximately 1% lower interest
rate  estimated present value savings of $16 million
Total new money component estimated to fund approximately $150 mil.
2010 scheduled principal payments for existing debt are $101 mil.
Projects are primarily aeronautical
Have been reviewed with the airlines
Debt service will primarily be paid through airline rates and charges
Debt service is reflected in CPE forecast reviewed by Commission

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Bond Funded Projects

Bond Projects ($ million)            2011    2012   2013   TOTAL
Airfield pavement                                 6.2       6.0       0.0      12.2
Storm water & sewer pipes                       2.4       1.1       0.0       3.5
Baggage handling improvements                10.5       5.3      0.9      16.7
Vertical circulation renewal & replacement        23.0      30.7      27.0       80.7
Preconditioned Air                                3.0       3.0       2.1        8.1
GSE electrical charge stations                     5.0       0.1       0.0        5.1
Other Terminal improvements                   12.8       5.5      0.0      18.3
TOTAL                            62.9    51.8    30.0    144.7


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Process & Schedule
June
Commission authorization
First Reading June 1
Second Reading June 22
July
Sell Revenue Bonds
August
Close revenue bonds


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