The document summarizes the City of College Station's planned issuance of $82 million in bonds in Fiscal Year 2019. The funds will support a variety of general government and utility projects. General government projects will receive $39.1 million, with the largest allocations for streets ($7.7 million) and parks ($8.5 million). Utility projects will receive $42.2 million, with the largest amounts for water ($13 million) and wastewater ($25 million). The city council will delegate final pricing authority to a pricing officer while establishing parameters like a maximum interest cost of 4%. This flexibility allows taking advantage of changing market conditions.
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
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ยฉ 2019 Hilltop Securities Inc.
All Rights Reserved
Parameter Bond Sale
๏ง Council delegates final pricing authority to a Pricing Officer - Mayor, City
Manager, or Assistant City Manager (Jeff Kersten)
๏ง Council establishes bond sale parameters:
๏ Maximum True Interest Cost = 4.00%
๏ Maximum Principal Amount of Issue = $82,000,000
๏ Final Maturity Date = February 15, 2039
๏ Expiration of Delegated Authority
โข May 13, 2020
๏ง Pricing Officer can only approve sale if the parameters are met
Reason for Parameter Bond Sale = FLEXIBILITY
Market Timing โ Bond issue is in โDay-to-Dayโ mode meaning that bonds can be
priced at any time and in an interest rate environment that is advantageous rather
than being locked into pricing on the date of a City Council meeting.
6. Member FINRA/SIPC/NYSE
ยฉ 2019 Hilltop Securities Inc.
All rights reserved.
College Station, Series 2019 Certificates of Obligation โ Preliminary Debt Service
*Estimated based on current market conditions.
Period Ending Principal Interest Debt Service
9/30/2020 2,535,000$ 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. Member FINRA/SIPC/NYSE
ยฉ 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