Item # 14 - PPT Refunding Bonds

Member FINRA / SIPC / NYSE
© 2020 Hilltop Securities Inc.
All Rights Reserved
Contacts
Transaction Summary Presentation
Anne Burger Entrekin
Regional Managing Director
anne.burgerentrekin@hilltopsecurities.com
70 Northeast Loop 410, Suite 710
San Antonio, Texas 78216
Direct: 210.308.2200
December 14, 2020 City of Alamo Heights, Texas
Michael Martin
Assistant Vice President
michael.martin@hilltopsecurities.com
1201 Elm Street, Suite 3500
Dallas, Texas 75270
Direct: 214.859.1731
Mario Hernandez
Assistant Vice President
mario.hernandez@hilltopsecurities.com
1201 Elm Street, Suite 3500
Dallas, Texas 75270
Direct: 214.953.4182

All Rights Reserved
S&P Rating

All Rights Reserved
“The rating reflects the city’s:
• Very strong economy,
• Very strong management;
• Very strong budget flexibility;
• Very strong liquidity;
• Strong debt and contingent liability profile;
• Strong institutional framework.”
“We view the city's management as very strong, with strong financial policies and practices under our
financial management assessment methodology, indicating our view that financial practices are strong,
well embedded, and likely sustainable.”
“Alamo Heights' budgetary flexibility is very strong, in our view, with an available fund balance in fiscal
2019 of 54% of operating expenditures, or $5.4 million. We expect the available fund balance to remain
above 30% of expenditures for the current and next fiscal years, which we view as a positive credit
factor.”
“In our opinion, Alamo Heights' liquidity is very strong, with total government available cash at 82.5% of
total governmental fund expenditures and 11x governmental debt service in 2019.”
Credit Rating Commentary
2
“AAA”/Stable Outlook (Rating Affirmed)
“We consider Alamo Heights' economy very strong. The
city, with an estimated population of 7,232, is located in
Bexar County in the San Antonio‐New Braunfels MSA,
which we consider broad and diverse. The city has a
projected per capita effective buying income of 214% of
the national level and per capita market value of
$264,829.”

All Rights Reserved
Summary of Refunding Results

All Rights Reserved
Summary of Callable Bonds
Callable Maturities 2021‐2032
Coupons 2.00% ‐ 2.625%
Call Date 10/27/2020
General Obligation Bonds, Series 2012
Original Principal $6,300,000
Callable Principal $4,895,000
Maturity Principal Interest Rate Call Date
8/15/2021 355,000$      2.000% 10/27/2020
8/15/2022 365,000         2.000% 10/27/2020
8/15/2023 375,000         2.000% 10/27/2020
8/15/2024 380,000         2.000% 10/27/2020
8/15/2025 390,000         2.000% 10/27/2020
8/15/2026 400,000         2.000% 10/27/2020
8/15/2027 410,000         2.125% 10/27/2020
8/15/2028 420,000         2.125% 10/27/2020
8/15/2029 430,000         2.250% 10/27/2020
8/15/2030 445,000         2.375% 10/27/2020
8/15/2031 455,000         2.500% 10/27/2020
8/15/2032 470,000         2.625% 10/27/2020
4,895,000$
4

All Rights Reserved
Refunding Service 2020 Results
General Obligation
Refunding Bonds, Series 2020
Refunding Par Amount $4,530,000
Gross Savings $297,453
Average Annual Savings (2022‐2032) $46,003
Net Present Value Savings $265,781
Present Value Benefit (%) 5.429%
True Interest Cost 1.214%
Date
Prior Debt
Service
Refunding
Debt Service
Projected
Savings
9/30/2021 $461,894 $670,473 ($208,579)
9/30/2022 464,794          427,200         37,594
9/30/2023 467,494          427,750         39,744
9/30/2024 464,994          428,000         36,994
9/30/2025 467,394          426,300         41,094
9/30/2026 469,594          424,500         45,094
9/30/2027 471,594          424,150         47,444
9/30/2028 472,881          423,500         49,381
9/30/2029 473,956          427,550         46,406
9/30/2030 479,281          426,150         53,131
9/30/2031 478,713          424,450         54,263
9/30/2032 482,338          427,450         54,888
$5,654,925 $5,357,473 $297,453
General Obligation Refunding Bonds, Series 2020 ‐ GOs
Series 2012 Structured Savings
5

All Rights Reserved
Summary Comparison of Projections to Actual
Projected Series
2020 Refunding(1)
Actual Series
2020 Refunding
Par Amount of Bonds $4,360,000 $4,530,000
Gross Savings $229,075 $297,453
Net Present Value Savings $198,528 $265,781
Savings as a % of Refunded
Bonds
4.055% 5.429%
True Interest Cost 1.410% 1.214%
Call Date 8/15/2030 8/15/2029
 Actual results as compared to projections:
 Gross Savings increased by $68,378 or 30%
 Net Present Value Savings increased by $67,253 or 34%
 Aggregate Savings as a % of Refunded bonds increased from 4.055% to 5.429%
 Call Date negotiated one year sooner
________________
(1) Preliminary numbers dated July 29, 2020
6

All Rights Reserved
Summary

All Rights Reserved
 The City achieved debt service savings by effectuating a refunding
transaction at historically low municipal interest rates
 Even with very low coupons from the original Series 2012 bond issue, debt
service savings exceeded savings projections
 We want to express our appreciation to:
 Mr. Kuhn, Mr. Galindo and the rest of the Alamo Heights Staff
 Tom Spurgeon, McCall, Parkhurst and Horton, Bond Counsel
 Frost, Underwriter
 The City of Alamo Heights, for our long-term financial advisory
relationship
Summary
8

Item # 14 - PPT Refunding Bonds

More Related Content

What's hot

Similar to Item # 14 - PPT Refunding Bonds

More from ahcitycouncil

Recently uploaded

Item # 14 - PPT Refunding Bonds