Atlanta Council approves sale of up to $310 million in airport customer facility charge bonds

The Atlanta City Council voted 8-0 Aug. 6 to adopt a substituted ordinance authorizing the sale of airport customer facility charge (CFC) revenue bonds, approving bond documents and amending the FY 2026 budget to allow bond proceeds for airport projects.The action, taken at a special-call finance meeting called by Council President Doug Shipman, followed a presentation from the finance team that said the bonds were favorably priced on Aug. 5 and drew strong investor demand. The ordinance authorizes issuance of 2025 A and B CFC revenue bonds and establishes parameters for aggregate principal amounts, maturities, redemption provisions and related documents. Council moved the substituted ordinance forward by unanimous vote and then voted 8-0 to transmit it to the mayor’s office "posthaste" for execution. Deputy Chief Financial Officer Yolanda Carr told the council that pricing on Aug. 5 was "highly favorable," and that more than 60 institutions placed orders for the bonds, signaling investor confidence in the city. Carr said the financing will both refund and redeem outstanding 2006 series A and B bonds and provide new money for planned airport capital projects. Courtney Knight of the finance team explained why the council met on a special call: following pricing, the city must formally approve the bond sale to the underwriters within about 24 hours so underwriters are not left “hung out” after they place orders. Knight said the expedited meeting schedule is driven by market timing rather than council preference. The bond proceeds will be used to redeem and refund the 2006 bonds tied to the rental car project and the SkyTrain, and to fund new-money capital for the airport. Carr identified projects the financing would support, including the rental car facility; terminal work; a parking garage; signage and escalator upgrades; and ongoing SkyTrain work. The presentation listed a par amount of $235,000,000 and noted premium, sources and uses for the transaction; the ordinance language set a not-to-exceed aggregate principal figure in the substitute caption. Council member Jason H. Winston asked the finance team to describe savings and restructuring related to the refunded bonds. Knight said the primary motive was to convert bonds originally issued by the City of College Park in 2006 into obligations of the City of Atlanta so Atlanta would control future financing for airport capital programs. The finance presentation included the following transaction figures as presented to council: par amount $235,000,000; combined sources/uses totals shown in the presentation of $274,000,000; redemption of prior bonds listed at $96,000,000; new-money projects roughly $146,000,000; debt-service and coverage amounts shown at $23,700,000 and $5,900,000 respectively; and an all-in true interest cost stated as 5.25 percent. The substitute ordinance’s caption referenced an aggregate principal amount not to exceed $310,000,000. No public speakers were listed for the meeting; council members used unanimous consent where noted for procedural motions. After the votes, council moved the approved substitute to the mayor’s office for final action. The council’s action authorizes staff to execute and deliver bond sale documentation, including preliminary and final official statements and a bond purchase agreement, and to amend the FY 2026 budget to reflect anticipated bond proceeds for the airport projects. The ordinance also ratified prior council and administrative actions related to the proposed 2025 CFC bond issuance. The measure now awaits the mayor's action and the final closing steps with underwriters and trustees before proceeds are available for refunding and project disbursements.