budget for aviation and dulles corridor enterprise funds

2012 BUDGETMetropolitan Washington Airports AuthorityDULLES CORRIDOR OPERATIONSThe Dulles Corridor Operation and Maintenance Program (O&M) is the financial plan foroperating the Dulles Toll Road, including reserve requirements. The O&M program is fundedfrom toll road revenue.DULLES TOLL ROADTransfer HistoryThe Metropolitan Washington Airports Authority (Airports Authority) and the VirginiaDepartment of Transportation (VDOT) concluded negotiations for a 50-year lease of theDulles Toll Road. The terms of the lease can be found in two documents: The Dulles TollRoad Master Transfer Agreement and the Dulles Toll Road Permit and Operating Agreement,both dated December 29, 2006. On November 1, 2008, VDOT transferred operational andfinancial control of the Dulles Toll Road to the Airports Authority for a term of 50 years.These documents reflect the two agencies understanding and agreements with respect to thetransfer of rights to operate, finance and maintain the Dulles Toll Road to the AirportsAuthority and certain related matters for the purpose of financing the construction of theDulles Corridor Metrorail Project and other transportation improvements in the DullesCorridor. The Agreement related to the transfer of the Dulles Toll Road can be found on theAirports Authority’s website www.mwaa.com.Dulles Toll Road Flow of FundsAs a part of this transaction and as stipulated in the Dulles Toll Road Permit and OperatingAgreement, the Airports Authority has established segregated accounts, management andoperational functions, where appropriate, for the operations of the Toll Road. Thissegregation of operational functions, as well as the asset management and improvementresponsibilities and contract obligations, require that the Airports Authority budget appropriateand expend funds in a specified manner. Specifically, all toll revenues shall be budgeted andused solely to pay, in the following order of priority, (I) Operations and Maintenance (O&M)Fund requirements (including the O&M account, O&M reserve account and emergency O&Mreserve account); (ii) Extraordinary Maintenance and Repair Reserve Account requirements;(iii) debt service and debt service reserve fund requirements, including other amountspayable under any Toll Road financing documents (including, without limitation, swaps, letterof credit reimbursement agreements and standby bond purchase agreements, commercialpaper or any other similar products or any scheduled TIFIA debt), together with deposits tofederal tax law rebate funds and any reasonable cash reserves or escrow accounts in respectthereof; (iv) all deposits in respect of the Renewal and Replacement Program and costs ofthe renewal and replacement work incurred during such year not funded from the renewaland replacement reserves; (v) Dulles Corridor Enterprise Reserve and Toll Rate StabilizationFund; (vi) all costs and expenses of constructing any road and highway capital improvements(other than the Dulles Toll Road) required to be paid during such year not paid from proceedsof Toll Revenue Bonds; (vii) capital costs of the Dulles Corridor Metrorail Project then dueand payable and not otherwise paid or reasonably expected to be paid from proceeds of the185