Page 27 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
Management's Discussion and Analysis (Unaudited) (continued)
Fiscal Years Ended June 30, 2017,2016, and 2015

Capital asset acquisitions and improvements, exceeding $5,000 are capitalized at cost.
Acquisitions are funded using a variety of financing techniques, including federal grants with
matching airport funds, passenger facility charges, debt issuance, and airport revenues.

LONG-TERM DEBT OUTSTANDING

In 2003, the Authority issued $20,820,000 of Series 2003-A Airport Revenue Refunding Bonds
dated October 22, 2003, maturing annually from 2014 through 2023, with interest on a variable
rate determined weekly. On December 1, 2009, the Authority reoffered the bonds with fixed
interest rates ranging from 3.25 percent to 4.5 percent, with a net interest cost of 3.99 percent.

 Balance outstanding June 30, 2017 - $15,105,000; June 30, 2016 - $17,440,000; June 30, 2015
- $19,665,000

In 2007, the Authority issued $44,635,000 of Series 2007 Airport Revenue Refunding Bonds dated
July 11, 2007, maturing annually from 2008 through 2026, with interest coupons ranging from
5.00 percent to 5.25 percent, with a net interest cost of 4.82 percent.

 Balance outstanding June 30, 2017 - $23,110,000; June 30, 2016 - $25,980,000; June 30, 2015
- $28,720,000

In 2010, the Authority issued $151,705,000 of Series 2010 Airport Revenue Bonds dated
December 22, 2010, maturing annually from 2011 through 2040, with interest coupons ranging
from 3.00 percent to 6.00 percent, with a net interest cost of 5.52 percent.

 Balance outstanding June 30, 2017 - $144,755,000; June 30, 2016 - $146,140,000; June 30,
2015 – 147,470,000

The total Authority debt outstanding at June 30, 2017, totals $182,970,000 compared to June 30,
2016 - $189,560,000; June 30, 2015 - $195,855,000

The underlying ratings of the Authority’s obligations for fiscal year 2017:

As of June 30, 2017
Fitch's Bond Rating A-

Moody's Bond Rating A3

PASSENGER FACILITY CHARGE (PFC)

The Authority initially received approval from the FAA to impose of PFC of $3.00 per enplaned
passenger beginning August 1, 1997, not to exceed $7,657,558, principally to finance the
rehabilitation of the main runway. Subsequently, the Authority requested and received approval
to increase the charge per enplanement to $4.50, and to increase the total collection amount to
$212,777,466. The Authority has used and will continue to use PFCs to finish the rehabilitation

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