The City of College Station is planning a 2012 bond sale and refunding. The bond sale will include $21.8 million in new money for street, transportation, park, and utility projects. It will also refund existing 2003, 2004, and 2005 bonds to achieve gross savings of $2.17 million or $1.77 million in net present value savings at 5.84% of the refunded amount. Refunding only the 2003 and 2004 bonds could achieve 7.27% savings but provides less flexibility going forward. A decision on refunding the 2005 bonds will be made closer to the sale date based on market conditions.

1. City of College Station
2012 Bond Sale
and Refunding
City of College Station

2. Outline
 2012 Bond Sale Calendar
 Negotiated Sale
 2012 Bond Issue
 2012 Refunding
City of College Station

3. 2012 Bond Sale Calendar
• March 22 – Workshop Presentation on 2012 Bond Sale
and Refunding
• March 22 - Authorize Publication of Notice of Sale for
Certificates of Obligation
• April 26 – Approve sale parameters, Appoint Paying
Agent/Registrar, Appoint Underwriters, Adopt Bond
Ordinances and Authorize preparation of Official
Statement
• May - October – Potential Pricing Window
• June - November – Closing Window
City of College Station

4. Negotiated Sale
• Negotiated Sale
Underwriters are chosen through an RFP
process
Maximum bond par parameters are set
Maximum interest rate and maturities are set
for new money
Must have at least a 5% net present value
savings on refunded bond
City Manager or Executive Director of
Business Services is given authority to
execute sale through adoption of Bond
City of College Station
Ordinance

5. 2012 Bond Sale (new money)
General Obligation Bonds
• Streets and Transportation
– Oversize Participation $
440,000
– Traffic Signals
650,000
– Street Projects 2,870,000
– Lincoln Sidewalk Project
200,000
– Lick Creek Hike and Bike Trail
100,000 City of College Station
Streets and Transportation Total

6. 2012 Bond Sale (new money)
General Obligation Bonds
• Parks and Recreation
– Lick Creek Park Trail $ 100,000
– Lincoln Center Addition
75,000
Parks and Recreation Total $
175,000
General Obligation Bond Total $
4,435,000
City of College Station

7. 2012 Bond Sale (new money)
Certificates of Obligation
• Information Technology Project $ 100,000
• Electric Projects
8,000,000
• Water Projects
3,000,000
• Wastewater Projects 6,000,000
• Debt Issuance Cost* 300,000
Certificates of Obligation Total
$17,400,000
City of College Station
*Debt Issuance cost is 0.59% of the total bond issue and

8. 2012 Bond Sale (new money)
New Money Total
• General Obligation Bonds $4,435,000
• Certificates of Obligation $17,400,000
Total $21,835,000
City of College Station

9. 2012 Bond Refunding
Option 1 Refunding
Series 2003, 2004 and 2005
2003 Bonds (GO/CO/URB) $ 8,225,000
2004 Bonds (GO/CO/URB) $10,645,000
2005 Bonds (GO/CO/URB) $11,430,000
Maximum Refunded Total $ 30,300,000
City of College Station

10. 2012 Bond Refunding
Option 1 Refunding
Series 2003, 2004 and 2005
Projected Savings (as of 3/21/2012)
Par Amount $29,415,000
Gross Savings $ 2,170,722
Net Present Value Savings $ 1,765,754
Percent Savings Projected
5.84%
City of College Station

11. 2012 Bond Refunding
Option 2 Refunding
Series 2003 and 2004 Only
2003 Bonds (GO/CO/URB) $ 8,225,000
2004 Bonds (GO/CO/URB) $10,645,000
Maximum Refunded Total $ 18,870,000
City of College Station

12. 2012 Bond Refunding
Projected Savings (as of 3/21/2012)
Par Amount $18,150,000
Gross Savings $ 1,670,953
Net Present Value Savings $ 1,370,575
Percent Savings Projected
7.27%
City of College Station

13. 2012 Bond Refunding
Incl 2005 Excl 2005
Par Amount $29,415,000
$18,150,000
Percent Savings 5.84%
7.27%
City of College Station

14. 2012 Bond Refunding
• Conclusions
– Maintain flexibility to issue the maximum
amount of refunding bonds.
– As sale date approaches assess market
conditions and determine whether to
refund the 2005 bonds now or next year.
City of College Station

15. Questions ?
City of College Station