Denver proposes up to $500 million in short-term airport borrowing
The variable-rate note would provide interim cash for airport capital projects and be repaid from airport revenues; Denver expects to refinance it with long-term bonds next year, subject to separate City Council approval.
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Denver’s Department of Finance has asked the City Council to authorize up to $500 million in short-term borrowing for projects in Denver International Airport’s 2023–2027 capital plan, including the Great Hall completion phase, baggage-handling modernization and concourse upgrades. The ordinance request proposes a variable-rate Airport System Tax-Exempt Bond Anticipation Note, Series 2026A.
The note’s rate would reset monthly at 79% of the one-month Secured Overnight Financing Rate, plus 40 basis points. The request characterizes the note as cash-flow financing for work already in the capital plan, rather than additional long-term borrowing. Denver expects to repay it next year with long-term fixed-rate bonds, a refinancing that would require separate City Council approval.
Repayment of the note would come solely from airport revenues, through a subordinate pledge of Airport System net revenues. The city’s taxing power and full faith and credit would not back it. Truist Commercial Equity Inc. was selected through a competitive process to purchase the note directly.