MCDC updates bond resolution to pursue TIFIA loan for airport financing

The board considered and approved a resolution updating a March 3 authorization to permit refunding of previously issued sales-tax revenue bonds and to pursue a TIFIA loan for airport financing. Counsel explained the action is not a new debt issuance but an update to clarify documents and proceed with a TIFIA loan if terms are favorable.

Counsel explained that TIFIA loan rates are computed as a 30-year Treasury rate divided by 0.5 plus one basis point, producing a substantially lower borrowing rate in the current market; staff presented an illustrative comparison showing annual interest payments could fall from approximately $1.3 million to $775,000, yielding roughly $500,000 in annual savings for the next five years. Board members moved and seconded the resolution and approved it by vote.

Staff noted passenger facility charges (PFCs) and projected airport revenue streams as part of the financial model and said PFC revenue could support longer-term loan servicing.