Official Statement Airport Commission City and County of San ...

Fifth, to pay for necessary reconstruction and replacement of Airport facilities;
Sixth, to acquire real property for the construction or improvement of Airport facilities;
Seventh, to repay to the City’s General Fund any sums paid from tax moneys for principal of and interest
on any general obligation bonds previously issued by the City for Airport purposes; and
Eighth, for any other lawful purpose of the Commission, including without limitation transfer to the City’s
General Fund on an annual basis of up to 25% of the non-airline revenues as a return upon the City’s investment in
the Airport. However, the Lease Agreements further limit payments from the Airport Revenue Fund into the
General Fund of the City to the greater of (i) 15% of “Concessions Revenues” (as defined in the Lease Agreements)
and (ii) $5 million per year. The Settlement Agreement provides that this Annual Service Payment to the City
includes the total transfer to the City’s General Fund contemplated by this Charter provision. See “RECENT
DEVELOPMENTS–Payments to the City.”
The 1991 Master Resolution establishes the following accounts within the Airport Revenue Fund: the
Revenues Account, the Operation and Maintenance Account, the Revenue Bond Account, the General Obligation
Bond Account, the General Purpose Account, and the Contingency Account. Under the 1991 Master Resolution, all
Revenues are required to be set aside and deposited by the Treasurer in the Revenues Account as received. Each
month, moneys in the Revenues Account are set aside and applied as follows:
First: to the Operation and Maintenance Account, the amount required to pay Airport Operation and
Maintenance Expenses;
Second: to the Revenue Bond Account, the amount required to make all payments and deposits required in
that month for the Bonds and any Subordinate Bonds, including amounts necessary to make any parity Swap
Payments to a Swap Counterparty (see “AIRPORT’S FINANCIAL AND RELATED INFORMATION–Interest Rate Swaps”);
Third: to the General Obligation Bond Account, the amount required to pay the principal of and interest on
general obligation bonds of the City issued for Airport purposes (there are no general obligation bonds outstanding
for Airport purposes);
Fourth: to the General Purpose Account, the amount estimated to be needed to pay for any lawful purpose,
including any subordinate Swap Payments payable in connection with the termination of the Swap Agreements (see
“AIRPORT’S FINANCIAL AND RELATED INFORMATION–Interest Rate Swaps”); and
Fifth: to the Contingency Account, such amount as the Commission shall direct.
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