Page 46 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 8 REVENUE BONDS PAYABLE (CONTINUED)

additional $1,967,259 of Series 1993-A and 1993-B sinking fund monies were
deposited into the 1993 Escrow Fund.

The Series 2003-B Bonds have been paid in full as of June 30, 2015.

The Series 2003-B net bond proceeds of $19,764,504 (after payment of $577,619
in issuance cost) plus an additional $2,012,283 of Series 1993-A and 1993-B
sinking fund monies were deposited into the 1993 Escrow Fund.

In refunding the Series 1993-A and Series 1993-B Bonds, the Authority incurred a
loss of approximately $1,802,751 which was deferred and was being amortized
over the life of the new debt in accordance with GASB 23. The Authority was
expected to reduce its aggregate debt service payments and obtain an economic
gain (difference between the present value of debt service of the refunded bonds
and the Series 2003-A and 2003-B Airport Revenue Refunding Bonds) estimated
to be approximately $2,177,000. In accordance with GASB 65, the remaining
balance of issuance cost was written off as of June 30, 2013.

On July 11, 2007, the Authority issued the Birmingham Airport Authority Airport
Revenue Refunding Bonds, Series 2007, in the amount of $44,635,000. The Series
2007 Bonds were issued to provide funds to refund the Authority's Series 1996 and
1999 Bonds outstanding in the principal amounts of $24,220,000 and $20,515,000,
respectively.

The Series 2007 Bonds mature no later than July 1, 2026, and require semi-annual
interest payments on January 1 and July 1, beginning January 1, 2008, at rates
ranging between 5 and 5.25 percent. Principal payments on the Series 2007 Bonds
are due annually beginning July 1, 2008.

The Series 2007 net bond proceeds of $45,622,343 (after payment of $343,478 in
issuance cost) plus an additional $141,713 of Series 1996 and 1999 sinking fund
monies were deposited into the 1996 and 1999 Escrow Fund.

In refunding the Series 1996 and Series 1999 Bonds, the Authority incurred a loss
of approximately $1,375,552, which was deferred and is being amortized over the
life of the new debt in accordance with GASB 23. The Authority is expected to
reduce its aggregate debt service payments over the next 19 years and will obtain
an economic gain (difference between the present value of debt service of the
refunding bonds and the Series 2007 Airport Revenue Refunding Bonds) estimated
to be approximately $1,496,970.

On December 22, 2010, the Authority issued the Birmingham Airport Authority
Airport Revenue Bonds, Series 2010 in the amount of $151,705,000. The Series
2010 Bonds were issued to provide funds for certain airport improvements,
primarily the renovation of the main terminal building at the Airport.
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