AGENDA ITEM # 34 KEY FOCUS AREA:
February 26, 2014
Outside City Limits
Office of Management Services Intergovernmental Services
Jeanne Chipperfield, 670-7804 A. C. Gonzalez, 670-3302
SUBJECT Authorize approval of the Fiftieth Supplemental Concurrent Bond Ordinance authorizing one or more services of Dallas/Fort Worth International Airport Joint Revenue Bonds, for lawful purposes; providing the security therefore; providing for the sale, execution and delivery thereof subject to certain parameters â€“ Financing: No cost consideration to the City BACKGROUND Dallas/Fort Worth (DFW) International Airport is requesting that the cities of Dallas and th Fort Worth concurrently approve the 50 Supplemental Bond Ordinance (SBO), providing the Airport the authority to issue one or more series of new money and refunding bonds in an amount not to exceed $1.7 billion. The authority to issue bonds will be for the period of one year. Approximately $1.3 billion of these bonds will provide funding for the Terminal Renewal and Improvement Program (TRIP) and other approved capital projects and an additional $400 million for refunding the remaining 2003A, 2004B and 2007 bonds. The $1.3 billion of new money bonds includes all the bonds necessary to finance the remainder of TRIP and other approved capital projects. DFW needs to issue approximately $650 million of this in 2014 to meet current capital needs. Although the remainder is planned to be issued in 2016, DFW is requesting authorization to sell all of the bonds in 2014 if interest rates begin to rise substantially. If these bonds are not sold in 2014, DFW Airport will return to the City Councils to receive the authority for their issuance at a later date. The refunding bonds will be issued only if net present value savings of 3% can be achieved.