Speaker 1: Thank you. We're going to move on to item 24.
Speaker 0: Report from financial management in Long Beach Airport. Recommendation to adopt a resolution authorizing the issuance and sale not to exceed 130 million of senior airport revenue refunding bonds. Series 2022a and B and Senior Airport Revenue Bonds Series 202 to C districts four and five.
Speaker 1: I have a motion but customer support on a second by Vice me Richardson. Is there any update on this from staff? We do have a staff report, if you'd like to hear it. I will turn it over to our financial management team and to airport. Thank you. Members of the Council. Kevin Roper, financial management director, joined by Cynthia Lewis, finance and administration manager for the Airport and Financial Management's Commercial Services Manager, Amanda Hall. The update is that if the interest rates that prevailed yesterday are still at the same level a week from today when the bonds are scheduled to be sold, then we'll be looking at the two series of refunding bonds generating about $15 million of debt service savings through lower interest costs over the remaining 18 years of life of the bonds being refunded about $833,000 a year in interest savings, which would be of great benefit to the airport fund. Now, of course, interest rates can move between yesterday and next Tuesday, especially as we've seen over the last few months. But that's the latest numbers on the refunding part. There's also a new money component series 2020 to see for the airport revenue bonds. That is to generate $30 million to go to pay a portion of the costs of phase two of the Terminal Airport Improvement Project. And those bonds would be 25 year bonds, as opposed to the 18 years remaining on the two bonds being refunded. Again, if interest rates yesterday prevail on one week from today, the all in interest cost for those 25 year bonds, the new money component would be about 4.78% versus a little over 4% for the shorter term refunding bonds. With that, Miss Lewis, Ms.. Hall and I are prepared to answer any questions. I can't remember. Did you have any comments?
Speaker 2: Yes, I do have a question and thank you for the report. Are there I've tried to follow the market here on this and it seems like the airport is looking very good in recent weeks. So congratulations on that. Are there other factors besides the interest rates that that factor in here?
Speaker 1: Certainly the health of the airport and the resumption of passenger and placements helps. The two rating agencies from which the airport and financial management sought ratings on this bond issue have affirmed the airport's ratings at a minus for Fitch and A3 for Moody's. Those are identical rating levels, and so those are unchanged from the last time the airport issued debt and the last time the rating agencies examined the credit worthiness of the airport. And so those ratings are being used to take into account all aspects of an airport's operation.
Speaker 2: And those are the reports I read. And I thought that that was an assessment that the airport is healthy and and going in the right direction. So thank you for that.
Speaker 1: Vice Mayor Richardson.
Speaker 2: Second.
Speaker 1: Do we have any public comment on this?
Speaker 4: If there are any members of the public that would like to speak on item 24 and person please on up at the podium in Zoom, please use the race name feature or dial start line now. See none that concludes public comment.
Speaker 1: Making them before we just go to a vote, I just wanted to again just commend the team at the city and broadly the airport team. I just think all the moves are making over at the airport are are really great. And this is obviously helps build on on the important work that we have there ahead of us. So thank you very much for everything. Please go out and cast your vote.
Speaker 0: District one.
Speaker 5: Hi.
Speaker 0: District two.
Speaker 5: Okay, whatever.
Speaker 0: District three.
Speaker 5: Hi.
Speaker 0: District four I. District five.
Speaker 5: By.
Speaker 0: District six i. District seven I. District eight, district nine i. Motion is carried.
Speaker 1: Thank you. Next, we're going to do item. Let's do the. Actually, why don't we do the 522 budget adjustments, which is 23.
Recommendation to adopt resolution authorizing the issuance and sale of not to exceed $130,000,000 in aggregate principal amount of Senior Airport Revenue Refunding Bonds Series 2022A and B and Senior Airport Revenue Bonds Series 2022C, secured by and payable solely from Airport Department revenues, and authorize City Manager, or designee, to execute all necessary documents in connection therewith; and

Increase appropriations in the Airport Fund Group in the Airport Department by $30,212,088 funded by proceeds from the issuance of the Series 2022C Bonds and Airport Department funds available for Phase II Terminal Area Improvements at the Long Beach Airport.  (Districts 4,5)