Program Finance

In December 2005, the Orange County Board of Supervisors selected a preferred financing program for the Airport Improvement Program – a major component of John Wayne Airport’s overall Capital Improvement Program (CIP). Improvements include construction of a South Remain-Over-Night (RON) commercial aircraft parking area, Terminal C and improvements to Terminals A and B, Parking Structure C, Central Utility Plant and a variety of projects to support the safe and efficient operation of the Airport.

Sources of Funds

JWA will fund the CIP in the most cost-effective manner and without using tax dollars. A variety of funding sources will be used, including:

• Internal Airport Revenues – JWA revenues are available to fund capital projects. A minimum balance of $35 million is kept in reserves, while additional funds have been set aside to support the Improvement Program.
  
• Federal Aviation Administration (FAA) Grants – JWA can receive reimbursement of up to 80 percent of the cost of eligible capital projects in Airport Improvement Program (AIP) grants from the FAA.
  
• General Airport Revenue Bonds (GARBs) – The bonds are payable solely from, and are secured by a pledge of, the net revenues of the Airport.
• Letters of Credit (LOCs) – This short-term financing mechanism would supplement the County’s long-term debt financing program.
  
• Passenger Facility Charge (PFC) Revenues – The PFC, created by Congress in 1990, is intended to assist airports in funding major infrastructure development. The fee generates $4.50 per enplaned passenger for a defined collection period. Bonds may also be issued against PFC revenues collected.
• Other – These funds are from Caltrans for seismic retrofit projects and from JWA Air Carriers for the hydrant fueling system.

Internal (JWA) revenue	201.9
FAA	27.3
GARBs	78.5
LOCs	43.7
PFC	180.9
Other	10.8
Total CIP:	$543.1

 
Uses of Funds

Following are the projects included in the Capital Improvement Program and the most current cost estimates for each project.

Terminal (1)	195.9
South Remain-Over-Night	40.2
Temporary Parking Lot C	2.2
Deconstruction Parking Structure B1	6.8
Parking Structure C	48.5
Parking Structure C Phase Two	43.7
Central Plant	27.7
Professional Services (2)	52.4
Contingency (3)	48.0
Other Airport Projects (4)	77.7
Total Airport Improvement Program:	$543.1

(1) The Terminal project costs include construction of Terminal C with six new gates and passenger boarding bridges, permanent north and south commuter/regional holdrooms, a Common Use Passenger Processing System, replacement of passenger boarding bridges at all 14 existing gates in Terminals A and B, as well as a new baggage handling system for all three terminals and other upgrades to Terminals A and B.

(2) Professional Services include project and construction management and testing and inspection services.

(3) Contingency funds are set aside for unanticipated costs and also reflect savings from other projects.

(4) Other Airport Projects includes a new JWA Maintenance Building, an added right turn on Campus Drive to Bristol Street to improve traffic flow, relocation and construction of a new trash dock and related facilities, removal of a utility substation, resurfacing of the main runway, new flight information display boards, seismic retrofits to existing buildings and more.