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Sacramento County authorizes up to $115M in airport refunding bonds, projects $800K annual savings
Summary
The Board approved issuance of Series 2026 Airport System Revenue Refunding Bonds not to exceed $115 million, estimating net annual savings of about $800,000 (7.8%). Bonds are payable from airport net revenues; no general-fund obligation was authorized.
The Sacramento County Board of Supervisors voted unanimously on May 19 to authorize issuance of Series 2026 Airport System Revenue Refunding Bonds, not to exceed $115 million, to refinance earlier airport debt and lower borrowing costs.
County officials presented the refinancing as a routine debt-management step. Staff said the refunding is estimated to deliver roughly $800,000 in annual net savings and a net present-value benefit of about 7.8 percent. The bonds will be fixed-rate with a final maturity matching existing debt, July 1, 2041, and will be payable from airport-system net revenues rather than the county general fund.
Board members asked clarifying questions about ratings and structure. Staff reported senior-lien ratings affirmed by Moody’s (A2 senior lien; A3 subordinate) and noted the financing will not constitute a general-fund obligation. The board approved the issuance 5-0 after the debt-utilization committee recommended bringing the item forward.
No additional conditions were attached to the approval; staff will finalize documents and direct execution of bond issuance steps.
