City of Colorado Springs - File #: 19-333

• File #: 19-333
• Version: 1
• Type: Resolution
• Status: Mayor's Office
• File created: 6/12/2019
• In control: City Council
• On agenda: 7/9/2019
• Final action: 7/9/2019
• Title: A resolution to authorize the Colorado Springs Airport to submit an application, and to accept and execute a loan with the Colorado Department of Transportation State Infrastructure Bank - Aviation Division in an amount not to exceed $7,500,000 to fund Passenger Facility Charge (PFC) projects at the Colorado Springs Airport Presenter: Greg Phillips, Director of Aviation

Date	Ver.	Action By	Action	Result
7/9/2019	1	City Council	adopted	Pass
6/24/2019	1	Council Work Session	referred

Title
A resolution to authorize the Colorado Springs Airport to submit an application, and to accept and execute a loan with the Colorado Department of Transportation State Infrastructure Bank - Aviation Division in an amount not to exceed $7,500,000 to fund Passenger Facility Charge (PFC) projects at the Colorado Springs Airport

Presenter:
Greg Phillips, Director of Aviation

Body
Summary:
Attached is a resolution to authorize the Colorado Springs Airport (Airport) to submit an application for a Colorado Department of Transportation (CDOT) State Infrastructure Bank (SIB) - Aviation Division - loan in an amount not to exceed $7,500,000. The resolution will also allow the Airport to accept and execute the loan when offered by CDOT. This loan will fund Passenger Facility Charge (PFC) projects at the Colorado Springs Airport.

Previous Council Action:
N/A

Background:
The Airport funds capital projects through a combination of FAA grants, State grants, Passenger Facility Charges (PFC) and the Capital Improvement Fund. The Airport pays project costs out of current reserves and then is reimbursed by the appropriate funding source. 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. Recently, CDOT has indicated funds are available for eligible projects and recommended the Airport submit an SIB loan application by June 2019 for consideration, contingent on approval from City Council.

Financial Implications:
By applying for an SIB loan, the Airport will use the loan proceeds to fund the PFC eligible share of the capital projects planned for 2019 thru 2022. The Airport will utilize future PFC collections to make the principal and interest loan payments over the next 10 years while still maintaining funds a...