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