FY2016 CCDOA Financial Report as of 6302016.pdf - page 91

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
78
In FY 2016 and FY 2015, the Department earned $89.6 million and $83.9 million, respectively, in PFC
revenues and earned $1,858.6 thousand and $754.3 thousand, again respectively, in PFC interest
income. In FY 2016 and FY 2015, the Department pledged $76.0 million and $76.2 million, respectively,
toward debt service payments associated with outstanding PFC bonds and pledged no monies
toward debt service payments on certain subordinate lien bonds that were used to fund PFC projects
approved by the FAA. No coverage is required for the PFC bonds.
On July 22, 2015, the Department issued $98.965 million of the Series 2015C Passenger Facility Charge
(PFC) Non-AMT Refunding Revenue Bonds ("Series 2015C Bonds"). The Department used the issuance
proceeds to execute an advance refunding of the Series 2007 A-2 PFC Non-AMT Bonds, to purchase a
reserve fund surety policy for the Series 2015C Bonds, and to pay for certain costs of issuance.
(e) Junior Subordinate Lien Debt and Jet A Bonds
The junior subordinate lien debt and Jet A bonds comprise Jet A Fuel Tax bonds and bond anticipation
notes issued 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
.). These bonds and notes are issued in accordance with the Indenture
between Clark County and The Bank of New York Mellon Trust Company, N.A.
The junior subordinate lien debt and Jet A bonds are on parity with each other and are secured by
and 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,
subordinate lien debt service, and PFC lien debt service. These bonds and notes do not constitute debt
of Clark County within the meaning of any constitutional or statutory provisions or limitations, and
neither the full faith and credit nor the taxing power of the County is pledged to the payment thereof.
As of June 30, 2016, the Department had $71.0 million in outstanding Jet A bonds and $268.5 million in
outstanding bond anticipation notes, for a total of $339.5 million in total outstanding third lien debt.
The Jet A Bonds are payable from and secured by a pledge of and lien upon the proceeds of a three-
cent-per-gallon tax collected by the County on jet aviation fuel sold, distributed, or used in the County.
Shortages in debt service from fuel tax collections are funded with Airport System revenues. As of June
30, 2016, there was no shortage of Jet A Fuel Tax revenues to cover the Jet A Bonds debt service.
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