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

Aviation Market Stimulus Program
In 2003, the Commission created an Aviation Market Stimulus Program (the “Stimulus Program”) reducing
landing fees by 50%, for new domestic and international flights maintained for twelve consecutive months to
destinations not currently served by the airline. Since Fiscal Year 2004-05, the Commission has extended the
Stimulus Program for new international flights only. For a description of new service at the Airport that has or is
expected to commence in Fiscal Year 2009-10, see “SAN FRANCISCO INTERNATIONAL AIRPORT–Airline Service–
New Service.”
SFO Transportation and Facility Fees
The rental car companies collect a $17.50 per rental contract fee that is paid to the Commission for
reimbursement of certain costs of operating and providing the AirTrain facilities to and from the Terminal Complex
and the rental car facility located one mile north of the Terminal Complex.
Passenger Facility Charge
Prior to 2001, the Airport financed its capital program primarily through interest earnings, Airport
operating revenues, Federal grants and the issuance of revenue bonds and commercial paper secured by a pledge of
the Net Revenues of the Airport. In 2001, the Airport received authorization from the FAA to commence collection
and use of a Passenger Facility Charge (a “PFC”) in the amount of $4.50 per enplaning passenger to pay for certain
eligible capital projects as approved by the FAA. The PFC revenues received by the Airport are subject to audit and
final acceptance by the FAA and costs reimbursed with PFC revenues are subject to adjustment upon audit.
PFC Applications
In 2001, the FAA approved the Airport’s initial PFC application (“PFC # 1”) to collect approximately
$113 million in revenues from October 1, 2001 through June 1, 2003, from a $4.50 PFC to pay for development
activities and studies related to a potential runway reconfiguration, which project has since been terminated. In
2002, the FAA approved the Airport’s second PFC application (“PFC # 2”) to extend the collection period for
PFC # 1 through April 1, 2008 (later revised to January 1, 2006) and apply the proceeds to pay debt service on
Bonds issued to finance certain other eligible project costs relating to the ITC. The amount of PFC revenues
estimated to be collected under PFC # 2 was $224 million. In 2003, the FAA approved a third PFC application
(“PFC # 3”) by the Airport to extend the collection period through the earlier of November 1, 2018 (later revised to
January 1, 2017) or the date when the total authorized collection amount is achieved. The collections from PFC # 3
will be used to pay a portion of debt service on Bonds issued for certain eligible costs associated with the
development of Boarding Areas A and G, and the ITC, and to pay costs in connection with the Airport’s five year
Capital Plan on a “pay as you go basis.” The total amount of authorized PFC collections, including interest earnings
thereon, under these three applications, as amended, is $833 million and as of June 30, 2009, a total of $478.4
million, including interest earnings thereon, had been collected.
Designation of PFC Collections as Revenues
PFC collections are not included in the definition of “Revenues” under the 1991 Master Resolution unless
specifically so designated by the Commission. Set forth in the table below is information regarding such
designations. The actual amount of PFC collections to be designated as “Revenues” and used to pay debt service in
Fiscal Year 2008-09 as designated by the Commission is dependent, in part, upon the actual amounts permitted for
such use by PFC regulations.
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