b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 5.CERTAINDISCLOSURESRELATEDTODEBT,INCLUDINGDIRECTBORROWINGSANDDIRECT PLACEMENTS (continued) (c) Airport Revenue Bonds, Series 2016A (continued)Series 2016A Bonds were issued in fully registered form and in denominations of $5,000 or integralmultiples thereof. The reacquisition price exceeded the net carrying amount of the old debt by$4,329,914.This amount is reported as the deferred charge on refunding and amortized over theremaining life of the refunded debt.The refunding will reduce total debt service payments over22 years by $7,192,885, resulting in an economic gain (difference between the present value ofthe debt service payments on the old and new debt) of $5,358,514.On August 11, 2021, $14,200,000 of the 2016A bonds were refunded with the issuance of 2021Arefunding bonds.A proportionate share of the deferred loss and premiums on the 2016A bondswas written off as part of the refunding.(d) Airport Revenue Refunding Bonds, Series 2021A (Non-AMT) and Series 2021B (Taxable)On August 11, 2021, the Commission issued Airport Revenue Refunding Bonds Series 2021A in theamount of $13,615,000 and 2021B in the amount of $545,000. The net proceeds of the 2021Abonds combined with other available resources were placed in the existing debt service fund tocurrent refund $14,200,000 of the 2016A Bonds maturing on July 1 in the years 2028 through 2034.The net proceeds of the 2021B bonds were placed in an irrevocable trust to effectively defease$500,000 of the outstanding principal amount of the 2013A Revenue Bonds maturing on July 1,2022. Principal payments are due each year on July 1 starting in 2022 through 2033. Interest onthe bonds is payable semi-annually each January 1 and July 1. The refunding will result in a cashsavings of $1,058,182, resulting in an economic gain (difference between the present value ofthe debt service payments on the old and new debt) of $1,172,361.(e) Restricted Assets Certain cash and investments are restricted by bond resolutions for the following purposes:2025 2024Cost of issuance $134,168 $134,168Debt service37,927,49711,048,918Equipment and capital outlay94,663,755100,923,389Operation and maintenance25,832,20322,239,183$ 158,557,623 $ 134,345,658(f) Bond CovenantsThebondresolutionscontainrestrictivecovenantswithrespecttoincurringadditionalindebtedness, sale, lease, or encumbrance of property, maintenance of facility, agreementswith airlines and other matters common to such bond issues.The covenants require that net revenues shall at all times not be less than the greater of 1.0 timesthe sum of the aggregate debt service and 1.25 times the aggregate debt service on bonds.CARESActfundsarenotpermittedtobeincludedinthenetrevenuescalculation.TheCommission was in compliance with the covenant for the years ended June 30, 2025 and 2024.36'