FY 20 Bond Issuance Update

1. City Of College Station
FY20 Bond Issuance Update
May 28, 2020

2. FY20 Debt Issuance Status
April 9th Council approved the Resolution to Publish a Notice of
Intent Regarding an Issuance of Certificates of Obligation
The notice published authorized a not to exceed $49,995,000
That amount was the budgeted amount for FY20
April 9 was early in the COVID 19 history. Staff needed time to
thoughtfully evaluate all options
Adoption of the authorization of publication in no way committed
the City
June 11 Council is required to adopt the Parameters ordinance for
the sale to proceed

3. FY20 General Government Proposed Issuance
Paid for from debt side of the Ad Valorem Tax Rate
Staff would like to reduce the proposed offering from the
budgeted $20,715,000 to $2,210,000. Accomplished by:
1. Realigning anticipated needs for projects based on COVID 19, other
factors and utilization of project savings - $3.1 million
2. Eliminating issuing remaining tranche for City Hall as CMAR contract
indicated it will not be needed - $6.8 million
3. Adding no additional projects from the unfunded capital list -
$4.2 million
4. Reassigning issued debt for Southeast Park to other projects -
$4.4 million

4. FY20 Issuance Detail of Projects – General Government
Budgeted Proposed SE Park Debt
Street Projects
Greens Prairie Road - West of Woodlake to Royder 1,000,000 - 1,000,000
SH 40 and FM 2154 Interchange 750,000 - 750,000
Design of FM2818 Capacity Improvements 700,000 - -
Traffic Signals 500,000 - -
Dartmouth/2818 Signal 200,000 - 200,000
Luther Extension (FM 2818 to North Dowling) 55,000 - -
Rock Prairie Road - SH6 to Medical Way 380,000 380,000 -
Luther Street Rehab-Marion Pugh to Penberthy 150,000 - 150,000
Oversize Participation 50,000 - -
Total $ 3,785,000 $ 380,000 $ 2,100,000
Park Projects
System Wide Park Improvements 660,000 660,000 -
Southeast Park Increase 1,800,000 - -
Aggie Field of Honor Fencing 400,000 - 400,000
Memorial Cemetery Operations Shop 1,725,000 - 1,725,000
Total $ 4,585,000 $ 660,000 $ 2,125,000
Vertical, Facilities, IT Projects
New City Hall 6,785,000 - -
IT Revolver 200,000 200,000 -
Video Surveillance 160,000 160,000 -
Network Upgrades/Replacement 810,000 810,000 -
Replacement Funds 190,000 - 190,000
Unfunded Projects 4,200,000 -
Total $ 12,345,000 $ 1,170,000 $ 190,000
Governmental CO Subtotal $ 20,715,000 $ 2,210,000 $ 4,415,000

5. FY20 Utility Funds Proposed Issuance
Paid for from Utility Fund Revenue
Staff would like to reduce the proposed offering from the
budgeted $28,340,000 to $21,075,000. Accomplished by:
1. Realigning anticipated needs for projects based on COVID 19 other
factors and utilization of project savings - $3.0 million
2. Reassigning issued debt for the purchase of water rights to the Rock
Prairie Elevated Storage tank - $4.3 million

6. FY20 Issuance Detail of Projects – Utilities
Budgeted Proposed Water Rights
Water Projects
Rock Prairie Road Elevated Storage Tank w/PRVs 4,250,000 - 4,250,000
Rehabilitation of Water Well Pumps and Motors 340,000 340,000
SH6 Water Line Ph III-WC to Sebesta 610,000 610,000
2818 Transmission Line Relocation 550,000 550,000
Woodson Village Rehab 500,000 250,000
Greens Prairie Water Tank Rehab 700,000 700,000
McCulloch Utility Rehab 500,000 250,000
Park Place/Holik/Anna Utility Rehab 260,000 260,000
Jones Butler Rehab 500,000 -
Total $ 8,210,000 $ 2,960,000 $ 4,250,000
Wastewater Projects
McCulloch Utility Rehab 775,000 250,000
LC Capacity Expansion & Nutrient Removal 6,200,000 6,200,000
Lick Creek Parallel Trunk Line 8,850,000 8,850,000
Northeast Sewer Trunk Line PH II 970,000 970,000
Northeast Sewer Trunk Line PH III 1,035,000 1,035,000
Woodson Village Rehab 500,000 250,000
Southwood Valley Trunkline 160,000 160,000
Bee Creek Parallel Trunk Line PH III 1,000,000 -
Park Place/Holik/Anna Utility Rehab 400,000 400,000
Carter Creek Equipment Shed 240,000 -
Total $ 20,130,000 $ 18,115,000 $ -
Utility CO Subtotal $ 28,340,000 $ 21,075,000 $ 4,250,000
Estimated Debt Issuance Costs $ 900,000 $ 400,000
Total Debt Issue $ 49,955,000 $ 23,685,000 $ 8,665,000

7. FY20 Refunding Proposed Issuance
Evaluating refunding the 2010 GO and 2010 thru 2012 COs
Amount $19 - $41 million
Average life remaining is 5.5 years
Possible Net Present Value Savings $1.4 - $3.9 million
Possible percentage savings on refunded bonds - 7.5% - 11.4%
Refunding savings must >= 5% to proceed

8. Historical Premium vs Coupon Interest Analysis
Premium on bonds payable is the excess amount by which bond are issued over their face value. Premiums are amortized and
reduce interest over the remaining life of the bonds. A premium occurs when the market rate of interest is less than the stated
rate of interest on a bond. Investors pay extra for the bond, which creates a premium. They will pay more in order to create
an effective interest rate that matches the market rate.
Issued Bonds* Premium Coupon on Bonds Effective Rate
2010 23,535,000 250,765 3.13% 3.11%
2011 9,895,000 90,158 2.44% 2.39%
2012 20,650,000 1,102,629 4.11% 2.61%
2013 19,250,000 705,347 4.45% 3.48%
2014 46,700,000 6,172,829 4.63% 2.47%
2015 - -
2016 33,985,000 3,078,234 3.65% 2.18%
2017 74,230,000 7,686,264 3.13% 2.54%
2018 37,380,000 1,855,125 3.72% 3.26%
2019 74,510,000 7,637,331 3.69% 2.68%
2010-2019 340,135,000 28,578,682 3.66% 2.75%

9. FY20 Revised Proposed Issuance
New Money Original Amount Proposed Reduction
General
Government $ 20,715,000 $ 2,210,000 ( $ 18,505,000)
Utility Funds
$ 28,340,000 $ 21,075,000 ( $ 7,265,000)
Issuance Cost
$ 900,000 $ 400,000 ( $ 500,000)
TOTAL
$ 49,955,000 $ 23,685,000 ( $ 26,270,000)
Refunding opportunity may raise proposed total

10. FY20 Debt Issuance Next Steps
Event Date
Rating Agency Calls May 19, 2020
Parameters Ordinance Adoption June 11, 2020
Pricing June 12 or thereafter
Settlement Approx. July 13
Even after June Pricing, the City can direct bond counsel to delay pricing for 90 Days