Resolution 099-2022RESOLUTION NO. 099 -2022
A RESOLUTION BY THE MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS ADOPTING FINANCIAL
MANAGEMENT POLICIES TO ESTABLISH TARGETS FOR
BOTH THE LEVEL OF UNRESTRICTED RESERVES AND
FOR THE TARGETED DEBT SERVICE COVERAGE RATIO
FOR OUTSTANDING DEBT ASSOCIATED WITH THE
BONDS ISSUED TO FUND THE CONCOURSE A EXPANSION
PROJECT AT KEY WEST INTERNATIONAL AIRPORT.
WHEREAS, Monroe County owns and operates the Key West International Airport; and
WHEREAS, the Monroe County Board of County Commissioners (BOCC) has approved
the construction of a new passenger concourse otherwise referred to as the Concourse A Expansion
project; and
WHEREAS, the BOCC will issue bonds to fund a portion of the Concourse A Expansion
project; and
WHEREAS, by establishing financial management policies which set forth a liquidity
target of 365 days of unrestricted cash on hand and a debt service ratio in the range of 1.50x —
1.75x the policy will help to secure and maintain an investment grade rating for the bonds;
NOW THEREFORE, BE IT RESOLVED THAT THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA HEREBY SETS FORTH THE
FOLLLOWING POLICIES:
1. Days Cash on Hand Policy - The amount of Days Cash on Hand carried by an
organization reflects the number of days it can pay its expenses in the absence of any
revenue. Airport management plans on targeting a minimum of 365 Days Cash on
Hand to provide a liquidity level sufficient to meet any unexpected disruption to its
operations. Cash levels above the 365 days target would be used for operating expenses
and/or capital expenditures at the Airport.
Days Cash on Hand will be calculated each fiscal year based on the following formula:
(Total unrestricted cash _ FY operating expenses) * 365 days
2. Debt Service Coverage Ratio Policy — This ratio provides information to investors on
the level of net revenues (remaining revenue after operating expenses have been
covered) available to make payments on any outstanding debt and is a key metric used
by the rating agencies to assign ratings to bonds. For example, if an airport has $100
in annual debt service payments, it must generate $125 in net revenues in order to
remain in compliance with its bond covenants to investors. The bonds issued by the
Airport in 2022 will include a legal requirement to achieve an annual minimum Debt
Service Coverage Ratio of 1.25x; a standard ratio used in the airport industry.
However; to ensure that there is an adequate buffer above the minimum legal
requirement and to support maintaining an investment grade rating on the Airport's
bonds, management will implement a policy to target a Debt Service Coverage Ratio
in the range of 1.50x — 1.75x.
PASSED AND ACCEPTED by the Board of County Commissioners of Monroe County,
Florida, at a meeting of said Board held on the 16th day of March, 2022.
Mayor David Rice
Mayor Pro Tern Craig Cates Yes
Commissioner Michelle Coldiron Yes `'
Commissioner District 3 (vacant) Vacant i Y
Commissioner Holly Raschein Yes
MADOK, Clerk
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BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FL
By
Mayor David Rice
ONROE COUNTY AT r0nINEY
PED O JrME&A
ASSIST LINTY ATTORNEY
Date 3/1/22
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Kevin Madok, CPA
Clerk of the Circuit Court & Comptroller — Monroe Count Florida
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DATE: March 23, 2022
TO: Beth Leto, Airports
Busiliess Manager, KWIA
FROM: Liz Yongue, Deputy Clerk
SUBJECT: March 16' BOCC Meeting
Attached is a copy of the following item for your handling:
K12 Resolution No. 099-2022 adopting financial management policies to establish
targets for both the level of unrestricted reserves and for the targeted debt serNrice coverage ratio for
outstanduig debt associated with the bonds issued to fluid the Concourse A Expansion Project at
Key West International Airport.
Should you have any questions please feel free to contact me at (305) 292-3550.
cc: County Attorney_
Finance
File
KEY WEST
500 Whitehead Street
Key West, Florida 33040
305-294-4641
MARATHON
3117 Overseas Highway
Marathon, Florida 33050
305-289-6027
PLANTATION KEY
88820 Overseas Highway
Plantation Key, Florida 33070
305-852-7145
PK/ROTH BUILDING
50 High Point Road
Plantation Key, Florida 33070
305-852-7145