FY2016 CCDOA Financial Report as of 6302016.pdf - page 90

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
77
Subordinate 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 and after the payment
of all senior lien debt service. 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 such fiscal
year and (2) to provide an amount not less than 110 percent of the aggregate debt service
requirement ("Subordinate Lien Coverage") for all the senior lien and subordinate lien bonds then
outstanding for the fiscal year. The actual subordinate lien coverage ratios for FY 2016 and 2015 were
1.65 and 1.70, respectively. As of June 30, 2016, the Department had $1,946.2 million in outstanding
subordinate lien bonds.
On February 18, 2015, the Irrevocable Direct-Pay Letters of Credit for the Series 2008 A-2 Bonds and
Series 2008 B-2 Bonds were extended through February 15, 2019.
Also on February 18, 2015, a reoffering occurred on the Series 2008 C-2 and 2008 C-3 Bonds.
Concurrent with this reoffering, the Irrevocable Direct-Pay Letters of Credit for the 2008 C-2 and 2008 C-
3 Bonds were replaced, with the new Irrevocable Direct-Pay Letters of Credit having a scheduled
termination date of February 15, 2019.
(d) PFC Bonds
The issuance of PFC 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 PFC bonds are issued in accordance
with the Indenture between Clark County and The Bank of New York Mellon Trust Company, N.A.
The PFC bonds are secured by a pledge of and lien upon pledged PFC revenues derived from a $4.50
PFC which has been imposed by the County under authorization of the Federal Aviation Act. In
addition, the PFC bonds are secured by and are payable from a claim on the net revenues of the
Airport System on parity with that of the subordinate lien bonds and junior to that of the senior lien
bonds. For FY 2008, the Department collected a PFC of $4.00 per qualifying enplaned passenger.
Effective October 1, 2008, the PFC rate increased to $4.50 per qualifying enplaned passenger. As of
June 30, 2016, the Department had $900.7 million in outstanding PFC pledged bonds.
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