Board authorizes up to $800 million in airport revenue bonds for Sacramento airport projects

The Sacramento County Board of Supervisors on July 8 authorized issuing airport revenue bonds in an amount not to exceed $800 million to finance projects at Sacramento International Airport and refund certain outstanding airport bonds. County debt staff described financing plans that would fund construction of additional gates at Concourse B, baggage handling improvements, and apron expansion; staff estimated new-money needs around $412 million tied to project deposits.

Officials said the requested authorization exceeded the initial project par amount to provide flexibility for a planned tender offer to refund outstanding callable airport bonds and to cover issuance costs, reserves and interest that may be capitalized. The county’s municipal adviser presented a revised good‑faith estimate showing a par amount of about $500.5 million and an estimated all‑in true interest cost in the mid single digits; staff said bonds would be fixed‑rate and not a general‑fund liability.

The board opened a statutory tax‑equity public hearing (required for tax‑exempt public finance), heard no public comment and approved the requested authorizations in a unanimous vote. County staff said the financing plan also assumes passenger facility charges and grant funds, and that the Department of Airports had decided not to pursue additional TIFIA loan financing for this series due to program eligibility and lower relative benefits for these projects.

Why it matters: The bonds will support capacity upgrades at Sacramento International Airport — additional gates and baggage improvements meant to accommodate passenger growth and improve operational reliability. The financing also aims to generate debt‑service savings by refunding callable bonds through a tender offer.

Board action: Vote to approve the authorizing resolution and related financing steps (unanimous roll‑call approval).