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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, 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 including Passenger Facility Charge (PFC) revenues.
- 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.
- Other – These funds are from Caltrans for seismic retrofit projects and from JWA Air Carriers for the hydrant fueling system.
Internal (JWA) revenue |
272.8 |
|---|---|
FAA |
27.3 |
GARBs |
116.8 |
LOCs |
43.7 |
PFC |
180.5 |
Other |
10.8 |
Total CIP: |
$651.9 |
Uses of Funds
Following are the projects included in the CIP and most current cost estimates for each project.
Terminal |
283.4 |
|---|---|
South Remain-Over-Night |
38.1 |
Parking Structure C |
50.9 |
Parking Structure C Phase Two |
43.7 |
Professional Services (1) |
72.4 |
Contingency (2) |
80.2 |
Miscellaneous (3) |
12.0 |
Central Utility Plant |
28.2 |
Other CIP (4) |
43.0 |
Total CIP: |
$651.9 |
(1) Professional Services include project and construction management, testing and inspection, master scheduling, etc.
(2) Contingency funds are set aside for unanticipated costs and also reflect savings from other projects.
(3) Miscellaneous includes the construction of Temporary Parking Lot C and an added right turn on Campus Drive to Bristol St. to improve traffic flow in the future.
(4) Other CIP includes a new JWA Maintenance Building, resurfacing of the main runway, remodeled Terminal restrooms, new flight information display boards, seismic retrofits to existing buildings and more.