1 Dallas Fort Worth International Airport Investor Presentation November 2018
Legal Disclaimer This presentation contains assumptions and forward-looking statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Such assumptions and statements may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance and achievements to be different from future results, performance and achievements expressed or implied by such assumptions or forwardlooking statements. Investors are cautioned that such assumptions and forward-looking statements could differ materially from those set forth in the assumptions and forward-looking statements included in this presentation. 2
Table of Contents Topics Covered Page U.S. Aviation Background 4 Economic Environment of DFW Airport 12 DFW Airport at a Glance 22 DFW Airport Financial Performance 44 Summary 56 3
4 U.S. Aviation Background
U.S. Airlines Due to industry consolidation, the U.S. has four major carriers Since 1978, U.S. airlines have been deregulated Airlines are generally free to establish routes based on profitability Most large airlines, with the exception of Southwest, have established hub-andspoke operations utilizing large strategically located hubs dominated by one airline SFO SEA LAX PHX SLC DEN DFW MSP ORD EWR DTW IAD CLT ATL MIA JFK/LGA DCA PHL 5
U.S. Airports Regulated by the Federal Aviation Administration (FAA) Rates and charges must be reasonable and not in excess of what is required to maintain and operate the airport No diversion of revenues permitted Each of the 60 largest US Airports (88% of U.S. passengers) are owned and operated by governmental entities 55% are city/county/state owned enterprises Chicago O Hare Atlanta Hartsfield-Jackson 30% are independent authorities Dallas/Fort Worth Orlando 15% are part of a Port Authority Port Authority of New York & New Jersey (JFK, LaGuardia, Newark) Boston (Massport) 6 Source: US DOT passenger data for 2015
Operational Funding Model at U.S. Airports FAA rules require airports to set rates and charges according to FAA regulations unless the airport and airlines agree on a methodology in a Use Agreement. Three Rate Base Models (In Order of Increasing Risk to the Airport Operator) Residual (Single Till) Airlines assume financial risks for overall airport operations Non-aviation revenues are use to lower airline rates and charges Chicago O Hare Miami Hybrid (Dual Till) Risks are jointly shared; airfield and terminal cost risks are typically borne by airlines Non-aviation revenues are shared per terms of the Use Agreement Airport Examples DFW Denver Compensatory (no Use Agreement) Airport assumes financial risk of recovering the actual cost of facilities and services used by airlines Non-aviation revenues are retained by the Airport LAX Boston 7
Capital Funding at U.S. Airports Bonds Tax Exempt and Taxable Airports have traditionally financed capital programs using taxexempt bonds; with some taxable bonds being issued Passenger Facility Charge (PFC s) Airports may levy up to $4.50 per passenger; collected by Airlines when tickets are purchased DFW Airport Capital Expenditures By Source of Funds 2011-2018 $3.7 Billion Total Grants 5% May be used for FAA approved projects on pay-as-you-go basis or to pay debt service Most medium/large hub airports (like DFW) have fully leveraged their PFCs to pay future debt service Federal Grants Large hub airports receive a disproportionately small amount of federal funds. DFW receives approximately $20-$25 million per year. Pay-go from airport-retained coverage and non-aviation revenues Cash 19% Debt 76% 8
Credit Quality of U.S. Airports Compared to the credit ratings of U.S. corporate bonds, U.S. airport bonds are generally considered to be under-rated. No publicly-owned U.S. Airport has ever defaulted on its revenue-backed bonds Large Hub airports are monopolistic in nature Closed-loop funding FAA does not allow airport revenues to be diverted to other entities including owner cities The relationship between local economies and airports is symbiotic Airports are capable of surviving economic, political, and operational challenges 2008 financial crisis Political mismanagement 9/11 attacks Airline bankruptcies Airline dehubbing 9
Number of Credits Credit Quality of US Airports Large publicly-owned US Airports are typically rated higher than privately-owned/operated foreign airports. Ratings Distribution Large Privately-Operated Global Airports U.S. Large Hub Airports 10 9 8 7 6 5 4 3 2 1 0 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Non-I.G. Moody s Rating U.S. Airports International 10 Source: Moody s Investor Service as of October 30, 2018
The Economic Environment of DFW Airport The State of Texas and the DFW Metropolitan Area (the Metroplex ) 11
The State of Texas Economy 268,000 sq. miles (694,100 sq. km) (Texas Almanac) Larger land area than France Population 28.7 million (U.S. Census) Gross Domestic Product - $1.7 trillion (U.S. Bureau of Economic Analysis) Second largest in U.S. Texas ranks #1 in Economic Climate (Forbes) #1 in Best State to do business in 2018 (CNBC) Texas is home to 50 Fortune 500 companies just behind NY State - 54 California 53 Leading state for exports in U.S. valued at $264 billion in 2017 (U.S. Census) 100 of the 1,000 largest U.S. companies are based in Texas (Fortune) Largest oil producing state in the U.S. 100 billion barrels of recoverable resources (U.S. Department of the Interior) $11 billion state rainy day fund State unemployment 3.9% (U.S. Bureau of Labor Statistics) No state income tax Median household income $53,207 (U.S. Census Bureau) 12
Strength of the State If Texas was a sovereign nation, it would rank 10th among the world s largest economies. Brazil $1.80 Trillion Texas $1.70Trillion Canada $1.53 Trillion 13 Source: World Bank, 2016
The DFW Metroplex The DFW Metroplex represents approximately one third of the Texas economy with GDP of half a trillion dollars 13 counties and 168 cities located within about 9,300 square miles (24,000 square km) Slightly smaller than Belgium or Taiwan 14 cities with populations more than 100,000 4 th largest U.S. metro area Expected to pass Chicago by 2031 Population 7.4 million 146,000 new residents in 2017 400 new residents per day Median household income $68,826 14 Source: Dallas, St. Louis Federal Reserve Banks
DFW Metroplex If a sovereign nation, the DFW Metroplex would rank 22 nd in terms of GDP. Rank Country GDP 2016 ($ trillions) Rank Country GDP 2016 ($ trillions) 1 United States $18.62 17 Turkey $0.86 2 China $11.20 18 Netherlands $0.78 3 Japan $4.94 19 Switzerland $0.67 4 Germany $3.48 20 Saudi Arabia $0.65 5 United Kingdom $2.65 21 Argentina $0.55 6 France $2.47 22 Sweden $0.51 7 India $2.26 DFW Metroplex $0.51 8 Italy $1.86 23 Poland $0.47 9 Brazil $1.80 24 Belgium $0.47 10 Canada $1.53 25 Iran, Islamic Rep. $0.42 11 Korea, Rep. $1.41 26 Thailand $0.41 12 Russian Federation $1.28 27 Nigeria $0.40 13 Spain $1.24 28 Austria $0.39 14 Australia $1.20 29 Norway $0.37 15 Mexico $1.05 30 United Arab Emirates $0.35 16 Indonesia $0.93 Sweden $0.51 Trillion Poland $0.47 Trillion DFW Metroplex $0.51 Trillion 15 Source: World Bank, 2016 and U.S. Department of Commerce, 2016
DFW is the Economic Engine for the Region $37 Billion Annual economic impact 55% from cargo 228,000 Jobs supported $12.5 Billion Supported payroll 16 Source: Pullman Group
Strengths of the DFW Metroplex Business The Metroplex is home to 42 Fortune 1000 companies* 22 Fortune 500 Companies* 3 rd behind NYC Metro and Chicago Metro* Over 120 headquarter relocations to Metroplex in last 8 years** 42 companies have expanded or relocated to Metroplex since Amazon announce HQ2 opportunity just over one year ago** * Source: Graphic from Dallas Economic Development Guide, 2017, Data from Forbes ** Source: Dallas Morning News, October 28, 2018 17
Strengths of DFW Metroplex Employment August 2018 Employment Report Nonfarm employment reached 3.7 million 3.6% unemployment rate Added 114,900 jobs from August 2017 to August 2018, a 3.2% increase #3 metropolitan area in terms of job growth in the U.S. #2 metropolitan area in terms of number of jobs created in the U.S. 18 Source: Southwest Information Office: U.S. Bureau of Labor Statistics
Public Administration 3% Information 2% Wholesale Trade 3% Strength of DFW Metroplex Employment Diversity Despite prevalent misconceptions, the DFW regional economy is diverse with no single industry employing more than 12% of workers Distribution of employment sectors is significantly similar to the U.S. as a whole Healthcare and Social Assistance 12% Finance Insurance and Real Estate 9% Manufacturing 9% Retail Trade 11% Agriculture Oil, Gas 1% Food Service, Entertainment, Recreation 9% Educational Services 8% Transportation, Warehousing, Utilities 6% Professional, Scientific, Technical 8% Construction 8% Business Management & Administration 5% Other Services 5% 19 Source: US Census Bureau American Community Survey, may not add up to 100% due to rounding
Strengths of the DFW Metroplex Leisure and Academics Home to 22 museums Three world-class performance halls 13 major universities 8 community college districts 6 professional sport franchises 20
Millions Dallas Love Field The DFW Metroplex is also served by Love Field, located near the Dallas Central Business District and owned by the City of Dallas Location of Southwest Airlines headquarters 200 150 100 Number of Gates DFW and DAL DFW 165 Limited by U.S. Law to 20 gates, 18 of which are leased to Southwest Airlines Airport has three runways 180 Southwest daily flights flown on Boeing 737 narrow-body aircraft No international flights or customs processing facility allowed by law 50 0 35 30 25 20 15 10 5 0 DFW 33 DAL 20 FY17 Enplanements (DFW and DAL) DAL 8 21
22 DFW Airport at a Glance
DFW Airport Ownership and Operations DFW Airport is jointly-owned by the Cities of Dallas (7/11) and Fort Worth (4/11) Located within the cities of Grapevine, Irving, Euless and Coppell, equidistant (17 miles) between the Central Business Districts of Fort Worth and Dallas. Governed by an eleven voting member board, made up of the two mayors, 6 appointed members from Dallas, and 3 appointed members from Fort Worth DFW Board has the authority to operate the airport on behalf of the Owner Cities, hire employees, approve contracts, levy rates, fees and charges, and lease facilities to the airlines and concessionaires, and lease property for commercial development Bonds are issued jointly by the Cities of Dallas and Fort Worth, backed solely by a pledge of Airport Revenues Airport is responsible for preparing documents and conducting sale The Board has no taxing authority, nor are the Owner Cities obligated to tax on behalf of the Airport 23
DFW Controlling Documents 1968 Contract and Agreement Established the Joint Venture between the Cities of Dallas and Fort Worth creating the Airport Board Master Bond Ordinance Gross Revenue pledge (not net revenue) Defines Gross Revenues and Current Gross Revenues Defines two rate covenants Gross Revenues (1.25x Debt Service) Current Gross Revenues (1.0x Debt Service) Establishes Flow of Funds Provides a Common Airport Reserve Fund equal to average annual debt service Fully funded with cash Provides a 90-day operating reserve 2010 Airline Use Agreement 10-year agreement that provides the business arrangement for operating the Airport and serves as a basis for airport rates and charges Established 3 Cost Centers Airfield and Terminal cost centers are residual DFW Cost Center (non-aviation businesses) provides an Upper Threshold for revenue sharing with airlines and a Lower Threshold for downside protection (residual in nature) Total Coverage includes: Rolling Coverage at 0.25x annual debt service Net revenues from the DFW Cost Center All documents are available by visiting https://www.dfwairport.com/investors 24
DFW Flow of Funds 25 Source: Dallas Fort Worth International Airport Series 2014E Official Statement
26 Strategically Shaping the Future of Travel Vision Travel. Transformed.
Along with the Growth of the Metroplex DFW has Grown into a Global Super-Hub 17,000 acres (6,880 hectares) Larger than the island of Manhattan 24-hour operations; no slot constraints or curfews 7 runways; 5 terminals; 165 gates Capable of landing four aircraft at one time 4 th busiest in world based on operations measured by daily departures 12 th busiest in world based on passengers 27
DFW has 27 passenger airlines and 21 cargo airlines Passenger Airlines Cargo Airlines * * 28 Source: DFW Monthly Flight Activity Reports, *Note: Amazon Prime Air flown by ATI; DHL flown by Kalitta Air
DFW serves 244 destinations 182 domestic and 62 international 182 Domestic 20 Mexico 9 Central America 9 Europe 5 South America 5 Asia 7 Caribbean 4 Canada 2 Middle East 1 Australia 29 Source: DFW Internal Statistics, includes announced service through Jun 2019
Top Markets DFW offers numerous daily flights to/from top U.S. markets within a fourhour flight, providing excellent connecting opportunities. Seattle - 11 Minneapolis - 12 Chicago - 21 Detroit - 11 Boston - 9 S.F. Bay Area - 14 Las Vegas - 13 Denver - 16 D.C. Area - 20 NYC - 30 Philadelphia - 10 L.A. Basin - 30 Phoenix - 13 Atlanta - 19 Houston 23 Orlando - 11 South Fla. - 20 30 Source: Diio Mi Schedules YE2018
Fiscal YTD June 2018 International Passengers International passenger traffic was up across most regions. 9.3% Canada 9.2% 16.0% Europe 5.5% Mexico 1.2% 33.8% 5.8% 17.1% Middle East (1.6%) Asia/Pacific 1.7 % Central & South America 6.1% 15.6% Source: DFW Monthly Flight Activity Reports Note: Percentages within text boxes denote FY YOY change; Color circles with percentages represents relative passenger market share Note: Caribbean 2.5%, not included in picture 4
Passenger Trending DFW continues to grow total and international passengers at a steady rate DFW Airport Total Passengers (Millions) DFW Airport Int l Passengers (Millions) 80 10 75 70 65 60 55 62.8 65.0 65.7 66.3 69.1 73.3 8 6 7.0 8.0 8.2 8.6 8.7 9.0 50 45 4 40 35 2 30 FY14 FY15 FY16 FY17 FY18 FY19(B) 0 FY14 FY15 FY16 FY17 FY18 FY19(B) 32 Source: DFW Monthly Flight Activity Reports, DFW FY18 O&M Budget
DFW Airport s International cargo network consists of 15 international carriers 33 Source: DFW Monthly Flight Activity Reports
(Thousands) (Thousands) Cargo Trending DFW continues to grow total and international cargo at a steady rate Total Tonnage (in thousands) International Cargo Tonnage (in thousands) 1000 500 800 600 652 684 733 808 886 910 400 300 321 346 365 371 388 403 400 200 200 100 0 FY13 FY14 FY15 FY16 FY17 FY18 0 FY13 FY14 FY15 FY16 FY17 FY18 34 Source: DFW Monthly Flight Activity Reports, internal forecasts
35 DFW First in Airport Customer Service Large Hubs in North American and Europe in 2016
DFW is the Largest Carbon Neutrality Airport in the World (since 2016) NOTE A copy of FY 2017 DFW s Environmental, Social and Governance Report is available on the DFW Investor page https://www.dfwairport.com/investors 36
DFW Infrastructure Airfield Preventative maintenance has preserved the life of DFW s runways, but some are approaching 50 years old and will need major reconstruction. Runway 18L/36R (Built 1973) Runway 17R/35L (Built 1973) Northeast End Around Taxiway Open 2021 Runway 13L/31R (Built 1973) Runway 13R/31L (Built 1986) Runway 17L/35R (Built 1996) Runway 18R/36L (Built 1984) Reconstruction in 2020 Runway 17C/35C (Built 1984) Reconstruction in 2018 Southwest End Around Taxiway Open 2022 Taxiway Golf Reconstruction in 2019 Southeast End Around Taxiway (Built 2008) 37
DFW Infrastructure Terminal Complex Five terminals, 165 gates, and a connecting, elevated Skylink people mover. Terminal A Opened: 1974 Renovated: 2017 Terminal C Opened: 1974 Not Renovated Terminal E Opened: 1974 Renovated: 2018 Terminal B Opened: 1974 Renovated: 2018 Terminal D Opened: 2005 Future Terminal F TBA 38
DFW Infrastructure Other DFW Airport, like a city, is responsible for maintaining all infrastructure on its 17,000 acres 1,288 lane miles (2,072 km) of streets and roadways 133 landside bridges 1.1 million linear feet (335 km) of water and sanitary sewer lines 1.4 million linear feet (427 km) of storm water lines 4.81 mile (7.74 km) Skylink People Mover System 39
DFW 10 Year Capital Plan Currently being negotiated with the airlines DFW is currently proposing the following projects (high level summary) Terminal F - $2.5 billion Airfield Improvements - $1.5 billion Other Improvements - $1.5 billion Planned Financing Taxable Bonds - $2.5 billion Tax Exempt Bonds - $2.0 billion Pay-as-you go - $800 million Federal funding - $200 million 40
Strength of American Airlines Largest airline in the world based on fleet, capacity, and number of passengers Operates approximately 6,700 flights per day to 350 destinations in more than 50 countries Pre-tax earnings excluding special charges: Year Ended 2017: $3.8 billion Year Ended 2018: $3.0 billion (based on analyst guidance) Lower earnings based on higher fuel costs 41
DFW s Relationship with American Airlines DFW/AA relationship is very strong DFW is AA s largest and considered its most profitable hub AA is constructing new $1 billion, 300- acre headquarters campus on DFW Airport property AA completed its new Integrated Operations Center at DFW in 2015, closing Pittsburgh operations DFW/AA actively negotiating new Use Agreement with options for terminal expansion 42
Operating Profits American Airlines Estimated Profit Margins DFW is AA s most profitable hub and one of its highest-margin hubs based on estimates provided by Ricondo and Associates from publicly available data. This is in line with public statements by AA s management team. American Airlines Profitability by Hub 1,500 1,250 1,000 750 500 250 - (250) 17.4% 12.7% 14.3% 13.6% 11.4% 11.4% 9.6% 6.7% 3.1% -0.9% -0.8% DFW CLT MIA ORD PHL LAX PHX JFK DCA LGA Non-Hub Operating Profit Operating Margin 43
44 DFW Airport Performance
Current Use Agreement Model Expires 9/30/20 DFW uses a hybrid model (duel till). It retains profits from non-airline revenues that exceed an agreed upon Upper Threshold. The remainder is shared with the airlines to reduce landing fees. Operating Revenue and Expense Fund (the "102 Fund") Airline Cost Centers DFW Cost Centers Airfield Terminal DFW Net Cost = Landing Fees Net Cost = Terminal Rentals Non- Airline Revenues KPIs - Airline Cost & Airline Cost per Enplanement Net Revs from DFW CC Joint Capital Account Coverage Account DFW Capital Account + Natural Gas Royalties + Sale of Land Proceeds - Annual Capital Transfer Terminal Cost Center Capital Accounts ("Capital Improvement Fund") Funded from cost center that drives new debt service Funded annually from DFW CC. Contributions currently equal upper threshold plus 25%. 45
Not in Use Agreement Capital Funds Accounting 46 Rate Accounting vs. U.S. Generally Accepted Accounting Principles (GAAP) Key Underlying Differences between U.S. GAAP Traditional financial analysis using the GAAP financial statements is not a fair representation of the outcome of airport business results For the Year Ended (000s) GAAP-Use Agreement FY 2017 FY 2016 Change in net position $ 7.0 $ (88.7) Accounting 129.0 177.4 Capital 28.9 32.8 Not in use agreement (83.2) (38.6) Change in DFW capital account 81.7 82.9 Reduction to airline rates 50.3 55.2 DFW cost center net revenues $ 132.0 $ 138.1 and Use Agreement Accounting Line Item GAAP Use Agreement Recovery of Capital Charges Capitalized Interest Depreciation Bond principal paid Offset to interest expense Recovered through debt service Pension Costs Expense Contributions only PFCs Revenue Recognized upon Receipt Revenue Recognized when used Operating Reserve No expense 25% reserve funding required Transfers from Capital Funds Debt Service Capital Fund Expenditures Air Service Incentives PFIC Grants Non-Operating Interest Income Intercompany elimination Debt service sinking fund Actual expense Actual expense Expenses/Revenues Recognized Grant Revenue Non-operating income Revenue and Debt Service offset Not Included Not included or recognized
Airport Revenue Composition Airport Revenues By Source* $700 $600 $500 $400 $300 $200 $100 $350.1 102.7 247.4 $402.0 116 286 $457.7 138.1 319.6 $515.2 132 383.2 $590.8 $618.3 132.1 133.2 458.715 485.1 Non-Airline Revenues Airline Revenues $ 2014 2015 2016 2017 2018** 2019(B) Fiscal Year 47 *Based on Use Agreement, excludes Public Facility Improvement Corporation profits **Preliminary Final Results for FY2018
Net Revenues, in millions DFW Cost Center Net Revenues Trending Non-Airline net revenue performance has remained strong over the last 5 years. Net revenues have flattened in recent years due to impact of TNC s and high debt service allocations. $150 138.1 132.0 132.1 133.2 $125 116.0 102.7 $100 82.9 81.7 82.8 84.4 $75 77.7 73.9 $50 55.2 50.3 $25 38.3 28.8 49.3 48.8 $ 2014 2015 2016 2017 2018* 2019(B) Fiscal Year *Preliminary Final Results for FY2018 Revenues to DFW Capital Acct Reduction in Landing Fees 48
DFW Revenues and Expenses by Source FY2019 Budget Revenues By Source ($1.0 billion) FY2019 Budget Expenditures By Use ($1.0 billion) PFCs $146M Airline Revenues $581M Non- Aviation Revenues $334M Debt Service $476M Operations $496M 49
50 DFW s Financing Program
DFW Financing Program Principal Outstanding Total debt outstanding of $6.25B at 11/1/2018 Final Maturity of 2050 Principal Amortization through Maturity (In Billions) $6.0B Principal Paid by the PFIC $5.0B $4.0B $3.0B $2.0B $1.0B - 51
DFW Financing Program Debt Service With the current debt profile, DFW has the ability to structure in new debt and keep overall debt service level. $600M $500M $400M Debt Service Paid by PFIC Annual Debt Service Outstanding Debt $300M $200M $100M - Debt Service Paid by Rates, Fees and Charges Debt Service Paid by PFCs 52
Amount of callable debt, in millions DFW Financing Program Redemption Schedule Through 2023, DFW has the option to call approximately $5.2B of debt to either achieve savings through refunding or restructure as desired. DFW is currently planning to advance refund approximately $1.3 billion of bonds in summer of 2019. $2,500 $2,000 $1,500 $1,000 $500 $ $28 Currently Callable $2,084 483 1,601 $1,311 352 959 $941 484 $804 387 456 417 11/1/2019 11/1/2020 11/1/2021 11/1/2022 11/1/2023 Call Dates Non-AMT Taxable 53
DFW s Financing Program Key Metrics Current Ratings: Moody s: A1 S&P: A+ Fitch: A+ Kroll AA- 1.60x Debt Service Coverage Ratios 800 Days Cash On Hand 1.40x 1.20x 1.00x 1.50x 1.52x 1.52x 1.46x 1.45x 1.21x 1.21x 1.23x 1.21x 1.19x 700 600 500 710 683 694 714 715.80x 400.60x 300.40x 200.20x 100.00x FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Current Gross Revenues Gross Revenues 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 54 Calculated using Audited Financials from DFW s Continuing Disclosure Filings
Public Facility Improvement Corporation (PFIC) In 2001, DFW created a non-profit corporation to finance and operate a Grand Hyatt Hotel, within International Terminal D The PFIC currently operates two hotels, the Grand Hyatt and the Hyatt Place. Construction of a third hotel, a Hyatt House, will begin this winter. The PFIC also collects Rental Car (RAC) Customer Facility Charges and Customer Transportation Charges and pays debt service on RAC Profits are not shared with the airlines Grand Hyatt Hyatt House - Concept Hyatt Place - Gallery RAC - Interior 55
56 Summary
Selected Other U.S. Large Airport Capital Plans ($ In Millions) $15,000 $15,000 $12,500 $10,000 $11,700 $7,500 $8,129 $7,392 $5,000 $6,200 $2,500 $4,000 $3,560 $3,516 $3,204 $2,100 $ JFK LAX ORD SFO ATL SAN MCO SEA FLL CLT 57 Source: JP Morgan Corporate & Investment Bank Estimates
Why Are We Here? DFW has made the decision to no longer issue Tax-Exempt AMT securities Concerns over regulated uses of tax-exempt bond proceeds Concerns regarding the size of the domestic AMT market after U.S. Tax Reform and other large capital programs at airports Yield spreads between AMT and Taxable bonds are marginal DFW believes there is international demand for high quality U.S. infrastructure debt DFW Airport bonds, which we believe are underrated, represent a compelling investment opportunity $5.2 billion of callable bonds over the next five years $1.8 billion to be refunded tax-exempt $3.4 billion to be refunded taxable (possibly $1.3 billion advanced refunded in summer of 2019) $3 billion to $6 billion of new construction over the next ten years 58
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