On Aug. 7, the San Antonio City Council voted to form the Texas Airport System Interim Financing Program as a way to bridge gaps in project funding for the San Antonio International Airport Terminal Development Program.

The big picture

According to city documents, the program will provide interim financing in an amount up to $500 million in support of the approved six-year capital improvement plan, CIP.

These funds will be used to support the $1.6 billion terminal development program, which comprises a variety of projects, such as the design and construction of airfield improvements, transit improvements, terminal expansions and information technology upgrade projects as well as updates to the Master Plan for the Airport.

According to city documents, the city plans to fund the CIP through the issuance of airport revenue bonds over a series of years, with the first issuance planned for Fiscal Year 2025-26.


Additionally, the program will provide city officials with flexibility in funding beginning December 2025 and will serve as a contingency fund for any issuance delays.

What else?

The program requires that the city select either a commercial paper dealer or a direct placement purchaser. A commercial paper is a funding apparatus using short-term, unsecured debt issued by cities with high credit ratings to finance short-term needs or to bridge the gaps in funding for a larger project, while a direct placement purchaser is an investor who purchases municipal securities directly from the city.

According to city documents, city officials will evaluate both options and choose the option with the lowest interest cost as well as the most favorable terms and conditions.


The commercial paper program will be paid with airport revenues and any outstanding balances will be refunded with airport revenue bonds after long term permanent financing has been secured.