FY2016 CCDOA Financial Report as of 6302016.pdf - page 89

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
76
(b) Senior Lien Bonds
The issuance of senior lien bonds is authorized pursuant to the Nevada Municipal Airports Act (NRS
§§496.010
et seq
.), the Nevada Local Government Securities Law (NRS §§350.500
et seq
.), and the
Nevada Registration of Public Securities Law (NRS §§348.010
et seq
.). All senior lien bonds are issued in
accordance with the Master Indenture of Trust dated May 1, 2003, ("Indenture") between Clark County
and The Bank of New York Mellon Trust Company, N.A.
Senior lien bonds are secured by and are payable from the net revenues of the Airport System after the
payment of all Airport System operating and maintenance expenses. Pursuant to the Indenture, the
Department has covenanted to fix, charge, and collect rentals, fees, and charges for the use of the
Airport System such that, in any fiscal year, the gross revenues, together with any other available funds,
will at all times be at least sufficient (1) to provide for the payment of all Airport System operation and
maintenance expenses in the fiscal year and (2) to provide an amount not less than 125 percent of the
aggregate debt service requirement ("Senior Lien Coverage") for all the senior lien bonds then
outstanding for the fiscal year. The actual senior lien coverage ratios (the ratio of total revenue less
operating expenses to debt service) for FY 2016 and FY 2015 were 4.52 and 4.10, respectively. As of
June 30, 2016, the Department had $941.0 million in outstanding senior lien bonds.
On April 30, 2015, the County issued $59.9 million in fixed rate Airport System Revenue Bonds Senior
Series 2015A ("Series 2015A Bonds") at a premium of $8.6 million. The proceeds, along with $3.4 million in
excess debt service reserve from the Series 2008E Airport System Senior Lien Revenue Bonds, were used
to refund the Airport System Revenue Bonds Senior Series 2005A, purchase a reserve fund policy, and
pay for certain costs of issuance.
(c) Subordinate Lien Bonds
The issuance of subordinate lien bonds is authorized pursuant to the Nevada Municipal Airports Act
(NRS §§496.010
et seq
.), the Nevada Local Government Securities Law (NRS §§350.500
et seq
.), and the
Nevada Registration of Public Securities Law (NRS §§348.010
et seq
.). All subordinate lien bonds are
issued in accordance with the Indenture between Clark County and The Bank of New York Mellon Trust
Company, N.A.
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