FY2016 CCDOA Financial Report as of 6302016.pdf - page 94

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
81
Series 2008E:
On May 15, 2008, the County issued $61.4 million in Non-AMT fixed rate Airport System Senior Lien
Revenue Bonds. The bonds mature in 2017. The stated interest rates range from 4.00 to 5.00 percent,
and the yields range from 2.33 to 4.01 percent. Interest payments are due on January 1 and July 1 of
each year, and scheduled principal payments are due on July 1. The 2008E Bonds were issued for the
purpose of refunding a portion of the outstanding Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series 1998A, to fund a deposit to the reserve fund for the Series 2008E Bonds, and
to pay certain costs of issuance. The bonds are uninsured.
Series 2009B:
On September 16, 2009, the Department became the first airport in the nation to issue fixed rate Build
America Bonds under the provisions of the American Recovery and Reinvestment Act of 2009 ("ARRA")
by issuing the Series 2009B Taxable Direct Payment Build America Bonds in the amount of $300.0 million.
The interest on these bonds is not excluded from gross income for the purpose of federal income
taxation. Under the provisions of ARRA, the Department is to receive, on or about the date of each
interest payment, a cash subsidy payment from the United States Treasury equal to 35 percent of the
interest payable on the Series 2009B Bonds. The Series 2009B Bonds have a fixed interest rate of 6.88
percent; however when the 35 percent rebate is factored in, the effective interest rate is 4.47 percent.
The bonds have staggered scheduled maturities through 2042. Interest payments are due on January 1
and July 1 of each year, and scheduled principal payments are due on July 1. The bonds were issued
to fund height restriction settlements and the construction of Terminal 3 ("T3"). No debt service reserve
fund was required, and the bonds were not insured.
The U.S. Office of Management and Budget reported to the U.S. Congress on the sequestration of
federal funds for federal fiscal years 2016 and 2015. As part of the federal sequestration, the subsidy
payment for Build America Bonds was reduced. For the 2009B Bonds, the reductions amounted to
$491.3 thousand and $527.4 thousand in the course of FY 2016 and FY 2015, respectively.
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