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FY19 Bond Sale

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FY19 Bond Sale

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FY19 Bond Sale

  1. 1. City of College Station
  2. 2. City of College Station
  3. 3. City of College Station FY19 Issuance Key Projects General Government Projects Amount Streets $ 7,711,000 Parks $ 8,464,000 General Government $ 22,925,000 Subtotal $ 39,100,000 Utility Projects Electric $ 4,200,000 Water $ 13,006,000 Wastewater $ 24,994,000 Subtotal $ 42,200,000 Debt Issuance Estimate $ 700,000 Total Anticipated Issue $ 82,000,000
  4. 4. City of College Station Boyd London
  5. 5. Member FINRA / SIPC © 2019 Hilltop Securities Inc. All Rights Reserved Parameter Bond Sale  Council delegates final pricing authority to a Pricing Officer - Mayor, City Manager, or Assistant City Manager (Jeff Kersten)  Council establishes bond sale parameters:  Maximum True Interest Cost = 4.00%  Maximum Principal Amount of Issue = $82,000,000  Final Maturity Date = February 15, 2039  Expiration of Delegated Authority • May 13, 2020  Pricing Officer can only approve sale if the parameters are met Reason for Parameter Bond Sale = FLEXIBILITY Market Timing – Bond issue is in ‘Day-to-Day’ mode meaning that bonds can be priced at any time and in an interest rate environment that is advantageous rather than being locked into pricing on the date of a City Council meeting.
  6. 6. Member FINRA/SIPC/NYSE © 2019 Hilltop Securities Inc. All rights reserved. College Station, Series 2019 Certificates of Obligation – Preliminary Debt Service *Estimated based on current market conditions. Period Ending Principal Interest Debt Service 9/30/2020 2,535,000$ 3,574,465$ 6,109,465$ 9/30/2021 3,170,000 2,934,581 6,104,581 9/30/2022 3,340,000 2,771,831 6,111,831 9/30/2023 3,505,000 2,600,706 6,105,706 9/30/2024 3,680,000 2,421,081 6,101,081 9/30/2025 3,865,000 2,232,456 6,097,456 9/30/2026 4,070,000 2,034,081 6,104,081 9/30/2027 3,050,000 1,856,081 4,906,081 9/30/2028 3,200,000 1,699,831 4,899,831 9/30/2029 3,365,000 1,535,706 4,900,706 9/30/2030 3,520,000 1,381,181 4,901,181 9/30/2031 3,665,000 1,237,481 4,902,481 9/30/2032 3,815,000 1,087,881 4,902,881 9/30/2033 3,965,000 932,281 4,897,281 9/30/2034 4,130,000 770,381 4,900,381 9/30/2035 4,275,000 623,656 4,898,656 9/30/2036 4,405,000 493,456 4,898,456 9/30/2037 4,540,000 359,281 4,899,281 9/30/2038 4,680,000 220,981 4,900,981 9/30/2039 4,825,000 75,391 4,900,391 $75,600,000* City of College Station, Texas Certificates of Obligation, Series 2019 Aa2/AA+ Assumes AA+ Current Market Rates as of May 2, 2019 *** Preliminary; For Discussion Purposes Only ***
  7. 7. Member FINRA/SIPC/NYSE © 2019 Hilltop Securities Inc. All rights reserved. Recent Texas City Tax-Exempt General Obligation Sales - Comparisons Pricing data from recently priced, similarly rated Texas Cities Issuer Issue Series Par Rating Sale Date TIC FinalMaturity Cityof Burleson,Texas CombinationTax &Revenue CO's 2019 $11,885,000 AA 5/6/2019 2.68% 3/1/2039 Cityof Mesquite,Texas CombinationTax &LimitedSurplusRevenue CO's 2019 $10,065,000 AA 5/6/2019 2.72% 2/15/2039 Cityof RoundRock,Texas CombinationTax &LimitedRevenue CO's 2019 $27,250,000 AAA 4/25/2019 3.39% 8/15/2044 Cityof Georgetown,Texas CombinationTax &Revenue CO's 2019 $20,315,000 AA+ 4/23/2019 2.74% 8/15/2039 Cityof Georgetown,Texas General ObligationBonds 2019 $4,920,000 AA+ 4/23/2019 2.80% 8/15/2039 TaxExemptComparable Transactions
  8. 8. Member FINRA/SIPC/NYSE © 2019 Hilltop Securities Inc. All rights reserved. Bond Buyer 20 Year GO Index
  9. 9. City of College Station

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