Title
A resolution to authorize the Mayor to accept and execute a loan from the Colorado Department of Transportation State Infrastructure Bank-Aviation Division in the amount of $2,336,000 to fund Passenger Facility Charge (PFC) projects at the Colorado Springs Airport.
Body
From:
Dan Gallagher, Director of Aviation
Summary:
Attached is a resolution to authorize the Mayor to accept and execute a loan from the Colorado Department of Transportation (CDOT) State Infrastructure Bank (SIB)-Aviation Division in the amount of $2,336,000. This loan will fund Passenger Facility Charge (PFC) projects at the Colorado Springs Airport.
Previous Council Action:
By Resolution No. 81-13 on September 10, 2013, City Council authorized the Colorado Springs Airport to submit an application to the CDOT SIB for a loan in an amount not to exceed $10,000,000 to fund preapproved and future Passenger Facility Charge (PFC) projects and other anticipated capital projects.
Background:
The Airport funds capital projects through a combination of FAA grants, State grants, Passenger Facility Charges and Capital Improvement Fund. The Airport pays project costs out of current reserves and then is reimbursed by the various agencies. Grant reimbursements are normally received within 30 days. However, since PFC funds are based on enplanements and received throughout the year, the reimbursement period can exceed several years. This results in the Airport cash flowing PFC projects for a number of years from its reserves.
The Airport has received a loan offer from the CDOT SIB in the amount of $2,336,000 to provide partial funding for capital projects at the Airport. The proposed resolution requests authorization for the Mayor to accept and execute the loan.
Financial Implications:
By accepting and executing the SIB loan, the Airport will use the loan proceeds to fund the PFC local match of the capital projects planned for 2014. The Airport will utilize...
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