This document provides details about an upcoming bond issuance for the city of Houston, Texas. It includes contact information, a timeline of key events, preliminary numbers on the par amounts and interest costs of general obligation bonds and certificates of obligation, as well as statistics on refunding outstanding debt. General obligation bonds totaling $39.655 million and certificates of obligation totaling $24.385 million are expected to be issued. The document also shows historical interest rate trends and the current Bond Buyer Index rate of 3.32%.

1. Contacts
Drew Masterson
Managing Director
700 Milam Street, Suite 500
Houston, Texas 77002
713.654.8654
Drew.Masterson@hilltopsecurities.com
Monday, May 16, 2016
2016 Bond Overview

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Summary of Preliminary Numbers
Par Amount All-in TIC
GO Improvement and Refunding Bonds, Series 2016
New Money………………………………………………………………… 7,655,000$ 2.856%
Refunding……………………………………………………………….. 32,000,000 1.945%
Total GO and Refunding Bonds………………………………….. 39,655,000$ 2.193%
Certificates of Obligation, Series 2016
General Government Projects………………………………….. 17,490,000$
Water Projects…………………………………………………………… 6,895,000
Total Certificates……………………………………………………… 24,385,000$ 2.752%
Preliminary Statistics - Rates as of May 9, 2016
*Preliminary, subject to change.

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All Rights Reserved
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Summary of Refunding Statistics
*Preliminary, subject to change.
Principal Amount Maturities Interest
Series to be Refunded* Refunded Rates
General Obligation Refunding Bonds, Series 2006 2,205,000$ 2017-2018 4.000%
Certificates of Obligation, Series 2007 1,945,000 2017-2027 4.250%-4.625%
General Obligation Improvement Bonds, Series 2007 1,935,000 2017-2027 4.250%-4.625%
Certificates of Obligation, Series 2008 13,090,000 2021-2028 4.125%-4.625%
General Obligation Bonds, Series 2008 4,370,000 2021-2028 4.125%-4.625%
Total General Obligation Debt to be Refunded 23,545,000$
Principal Amount Maturities Interest
Series to be Refunded* Refunded Rates
Utility System Revenue Bonds, Series 2007 12,570,000$ 2017-2027 4.100%-4.500%
Total Outstanding Debt to be Refunded 36,115,000$
General Obligation Refunding Candidates
Utility System Refunding Candidates

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© 2016 Hilltop Securities Inc.
All Rights Reserved
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Summary of Proposed Refunded Bonds
*Preliminary, subject to change.
5/9/2016
Refunding Par Amount…………………………………………………………………..32,000,000$
Gross Savings (2016-2028)…………………………………………………………………..5,228,829$
Net Present Value (NPV) Savings…………………………………………………………………..4,668,636$
Average Annual Savings (2016-2028)…………………………………………………………………..402,218$
Net PV Savings as a % of Refunded Bonds…………………………………………………………………..12.93%
All-in True Interest Cost…………………………………………………………………..1.945%
Average Coupon of Refunded Bonds……………………………. 4.646%
Negative Arbitrage………………………………………………………………….. 378,257$
Negative Arbitrage as % of NPV Savings……………………….. 8.102%
General Obligation Refunding Statistics

5. Member FINRA / SIPC
© 2016 Hilltop Securities Inc.
All Rights Reserved
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Timeline
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 1 2 1 2 3 4 5 6 7 1 2 3 4
6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
27 28 29 30 31 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30
Council Meeting Holiday
June-16March-16 April-16 May-16
Completion Date Event Responsibility
Thu - Mar 31 → City Council Meeting: Authorize Publication of Notice of Intent for
Certificates
FWG
Mon - Apr 4 → Publish First Notice of Intent for Certificates BC
Mon - Apr 11 → Publish Second Notice of Intent for Certificates BC
Mon - May 9 → Rating Call with Moody's - 11:00 AM City
Tue - May 10 → Rating Call with S&P - 2:30 PM City
Mon - May 16 → City Council Meeting: Approve sale parameters, appoint Paying
Agent/Registrar, adopt Ordinances and approve the Preliminary Official
Statement.
City
→ Receive Ratings FWG
Tue - May 24 → Post electronic POS FA
Tue - Jun 7 → *** Pricing Date*** Pricing Officer Awards Bonds and Certificates
to Initial Purchaser
City
Tue - Jul 5 → Closing FWG

6. Member FINRA / SIPC
© 2016 Hilltop Securities Inc.
All Rights Reserved
6
Bond Buyer Index as of May 12, 2016
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
20 Year History
Weekly Actual as of 5/12/2016
Bond Buyer GO Index
Current: 3.32%
This graph depicts historical interest rates and their respective relationships. Future interest rates are dependent upon many factors such as, but not limited to, interest rate trends, tax rates, the supply
and demand of short term securities, changes in laws, rules and regulations, as well as changes in credit quality and rating agency considerations. The effect of changes in such factors individually or in
any combination could materially affect the relationships and effective interest rates. These results should be viewed with these potential changes in mind as well as the understanding that there may
be interruptions in the short term market or no market may exist at all.
This graph depicts historical interest rates and their respective relationships. Future interest rates are dependent upon many factors such as, but not limited to, interest rate trends, tax rates, the supply
and demand of short term securities, changes in laws, rules and regulations, as well as changes in credit quality and rating agency considerations. The effect of changes in such factors individually or in
any combination could materially affect the relationships and effective interest rates. These results should be viewed with these potential changes in mind as well as the understanding that there may
be interruptions in the short term market or no market may exist at all.