Legislature(2001 - 2002)
2001-01-16 House JournalFull Journal pdf
2001-01-16 House Journal Page 0097 HB 64 HOUSE BILL NO. 64 by the House Rules Committee by request of the Governor, entitled: 2001-01-16 House Journal Page 0098 "An Act relating to international airports revenue bonds; and providing for an effective date." was read the first time and referred to the Transportation and Finance Committees. The following fiscal note(s) apply: 1. Fiscal, Dept. of Revenue The Governor's transmittal letter dated January 12, 2001, appears below: "Dear Speaker Porter: The Alaska International Airports System (AIAS), comprised of the Ted Stevens Anchorage International Airport and the Fairbanks International Airport, is a vital and growing part of our economy. The AIAS and the state's major air carriers are now finalizing a new operating agreement aimed at continued system development. Included in the agreement are plans for capital improvements to the system using revenue bonds, which this bill I transmit today would authorize. This bill increases the current cumulative authorization for revenue bonds for international airport capital improvements by $147,900,000 -- from $305 million to $452,900,000. This is intended to support capital improvement programs for fiscal years 2002 and 2003. Funding for operations and capital improvements of the two airports is covered by charges for the use of airport facilities, primarily paid by commercial airlines, plus some federal capital grants. The new operating agreement under negotiation with the participating airlines includes a five-year capital improvement program. The airlines have requested, and the airport system has agreed, to shift to revenue bond funding rather than the historic method of financing capital improvements through annual capital charges paid by the airlines. While repayment of the bonded debt and debt service would still be covered with charges paid by the airlines, revenue bonds would allow payments to be spread over the useful life of airport projects. 2001-01-16 House Journal Page 0099 The current bonding authority cap of $305 million has been exhausted. The authority sought in this bill would increase the revenue bond authorization limit to permit two years of capital improvements to be addressed in a single revenue bond issue, reducing costs related to the debt issuance. In order to assure timely project development, I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor"