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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM:Nick Tarbet, Policy Analyst
DATE:June 3, 2025
RE: Salt Lake City Department of Airports Revenue Bonds, Series 2025
May 13 WORK SESSION SUMMARY
During the May 13 work session, the Council did not raise any concerns or questions about the Airport bonds.
On June 3, 2025, the Council will set a public hearing date for July 1, 2025.
The following information was provided for the May 13 work session briefing. It is provided again for
background purposes.
ISSUE AT-A-GLANCE
The Council will receive a briefing from the Department of Airports about a resolution authorizing the issuance
and sale of $700 million of airport revenue bonds (the “series 2025 bonds”). The bonds are for the purpose of
financing and refinancing capital improvements to the Salt Lake City International Airport, and the resolution
will give authority to airport officials and officers to approve the final terms and provisions of the 2025 bonds.
The current plan calls for the 2025 Bonds to be sold on or about August 4, 2025. In order to meet this deadline,
the Council would adopt a resolution on June 3, 2025, set the date for a public hearing and potential adoption
on July 1, 2025. This timeline accommodates the required 30-day contest period to close the transaction in
August of 2025.
KEY ELEMENTS
Once completed, the total costs for the new SLC Airport are estimated to be around $5.135 billion. This bond is
the final new money needed to complete the airport.
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No general fund revenues will be pledged toward the repayment of the 2025 bonds. The debt service is paid for
by revenues generated at the airport such as landing fees, terminal rentals, parking, rental cars, food/beverage
concessions and cargo revenues.
POLICY QUESTIONS
Does the Airport anticipate current economic events, including trade policy discussions, could
potentially impact the completion of the airport redevelopment project?
The Council may wish to ask the administration to give some examples of how sustainability priorities
identified in the Airport Master Plan will be factored into how these bonds will be used.
5/13/2025
AIRPORT REVENUE BONDS SERIES 2025A CITY COUNCIL
Overview of the New SLC Timeline
Completion of Phase 4 Achieves 94 Active Gates Plus
Hardstands to Provide Additional Future Capacity, When Needed
February 2025 Showing Phase IV and Hardstand Infrastructure
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Financing schedule for the 2025 Bonds shows closing in August.*
City Council Work Session
City Council Meeting –Resolution Adoption
Meet with Rating Agencies
Receive Ratings
Post the Preliminary Official Statement
Bond Pricing
Closing
Series 2025 Bond Highlights
•Asking for authorization to borrow up to $700 million of general airport
revenue bonds with a plan to sell approximately $633.5 million
•Assumed interest rate is 5.55% based on current market conditions with
a not to exceed rate of 6.5%
•Final maturity of not greater than 40 years; most likely a 30-year final
maturity
•Bond proceeds will fund capitalized interest to help pay debt service until
bond-funded facilities are placed into service
Total capital costs of the New SLC are estimated
at $5.135 billion.
(in millions)
TRP $2,830.1
$2,304.9
PFC Revenues
(pay-as-you-go)
6.5%Airport Funds 9.1%
CFCs Revenues
(pay-as-you-go)
3.9%
AIP/TSA
5.7%
Outstanding Bonds
63.9%
Proposed Series
2025 Bonds
10.9%
Total Funding
from Bond Proceeds:
$3.84* billion
(74.8%)
* Includes earnings on project fund deposits prior to their expenditure
This is the Final New Money Deal to Complete the New SLC
Source: PFM Financial Advisors LLC
* Series 2017, Series 2018, Series 2021, and Series 2023 metrics are actuals
** Capitalized interest period may be revised and will be based upon the placed in-service dates of the projects financed
Closed
February 23, 2021
Closed
October 31, 2018
Closed
August 5, 2021 August 1, 2023 August 4, 2025
$1.0 billion $850.6 million $904.6 million $600 million $633.5 million
$883.8 million $771.5 million $974.6 million $583.2 million $560.1 million
4.09%4.30%2.90%4.55%5.55%
Through 2020
Completely through
2020; Partially
through 2023
Partially through July
2025
Partially through July
2025**
Completely through
2025; Partially
through October
2026**
7/1/2047 7/1/2048 7/1/2051 7/1/2053 7/1/2055
Estimated sources and uses of funds for
the Series 2025 Bonds
Bond Par Amount $633,520,000
Original Issue Premium 5,161,297
Project Fund Deposit $560,132,920
Capitalized Interest 31,254,381
Debt Service Reserve Fund 44,488,563
Issuance Costs 2,805,434
Source: PFM Financial Advisors LLC
Estimated debt service on the Series 2025 Bonds
Year Principal Interest Debt Service CAPI Net Debt Service
2026 1,985,000 31,546,590 33,531,590 (24,589,218) 8,942,372
2027 9,770,000 34,737,475 44,507,475 (6,665,163) 37,842,312
2028 10,255,000 34,248,975 44,503,975 - 44,503,975
2029 10,770,000 33,736,225 44,506,225 - 44,506,225
2030 11,305,000 33,197,725 44,502,725 - 44,502,725
2031 11,865,000 32,632,475 44,497,475 - 44,497,475
2032 12,460,000 32,039,225 44,499,225 - 44,499,225
2033 13,080,000 31,416,225 44,496,225 - 44,496,225
2034 13,740,000 30,762,225 44,502,225 - 44,502,225
2035 14,425,000 30,075,225 44,500,225 - 44,500,225
2036 15,140,000 29,353,975 44,493,975 - 44,493,975
2037 15,900,000 28,596,975 44,496,975 - 44,496,975
2038 16,700,000 27,801,975 44,501,975 - 44,501,975
2039 17,575,000 26,925,225 44,500,225 - 44,500,225
2040 18,495,000 26,002,538 44,497,538 - 44,497,538
2041 19,475,000 25,031,550 44,506,550 - 44,506,550
2042 20,525,000 23,960,425 44,485,425 - 44,485,425
2043 21,670,000 22,831,550 44,501,550 - 44,501,550
2044 22,855,000 21,639,700 44,494,700 - 44,494,700
2045 24,120,000 20,382,675 44,502,675 - 44,502,675
2046 25,435,000 19,056,075 44,491,075 - 44,491,075
2047 26,895,000 17,593,563 44,488,563 - 44,488,563
2048 28,450,000 16,047,100 44,497,100 - 44,497,100
2049 30,085,000 14,411,225 44,496,225 - 44,496,225
2050 31,820,000 12,681,338 44,501,338 - 44,501,338
2051 33,650,000 10,851,688 44,501,688 - 44,501,688
2052 35,585,000 8,916,813 44,501,813 - 44,501,813
2053 37,625,000 6,870,675 44,495,675 - 44,495,675
2054 39,790,000 4,707,238 44,497,238 - 44,497,238
2055 42,075,000 2,419,313 44,494,313 - 44,494,313
Total 633,520,000 690,473,977 1,323,993,977 (31,254,381) 1,292,739,597
Questions?