HomeMy WebLinkAboutMINUTES - 04191994 - 1.55 TO: BOARD OF SUPERVISORS Contra
mss. �i
FROM: / Costa
Phil Batchelor, County Administrator �' s
zA County
DATE: April 19, 1994
SUBJECT: Refinance Airport Loans
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . Approve a Master Lease/Purchase Agreement with Transocean
Funding 1994, Inc. to finance the payoff of existing airport
loans and airport improvements for Buchanan and Byron
Airports.
2 . Authorize the Public Works Director to execute all necessary
documents to complete the transaction.
FINANCIAL IMPACT:
Refinancing of the Airport CALTRANS loans will reduce the costs to
the Airport Enterprise Fund and match the debt service to the
anticipated cash flow in the future. Additional revenue sources
will be generated by completion of improvements at the Byron
Airport.
BACKGROUND:
The County airports have received millions of dollars over the
years for various airport improvements through 90% grants from the
Federal Aviation Administration. CALTRANS, Division of
Aeronautics, has loaned the County the remaining 10% at various
-interest rates and terms . . The proposed financing combines the
outstanding amounts owed to the State into one new financing at a
lower interest rate with debt service matched to the anticipated
revenue cash flow for the Airport Enterprise Fund in the future.
CONTINUED ON ATTACHMENT: RYES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON April 1 9 1994 APPROVED AS RECOMMENDED X _ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT I ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED April 19 , 1994
Contact: Hal Wight (646-5722) PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: Airport Manager SUPER V ORS AND COUNTY ADMINISTRATOR
Public Works Director
County Administrator p
BYA 414 ,DEPUTY
-2-
The large commitments to the development of the Byron Airport has
created the potential for a General Fund subsidy to the Enterprise
Fund in the short term which will be eliminated by approval of the
refinancing plan.
The financing plan also includes limited funds to complete certain
capital improvements at the Byron Airport that are not eligible for
federal grants but are needed for generation of rental revenues.
The Airport Manager has indicated that the airports will have
substantial increases in revenue in the next few years from
agreements currently in place. Additional revenue sources are
anticipated as the Byron Airport becomes operational. In addition,
CALTRANS has approved a new grant program beginning in 1995 that
provides 4 .5% grant money to match the 90% FAA funds, leaving only
5 . 5% for the County to match for future airport improvement
projects .