Powerpoint COAH GO Bonds

1. Member FINRA / SIPC / NYSE
© 2020 Hilltop Securities Inc.
All Rights Reserved
Contacts
Bond Market Update for Lower Broadway Project
General Obligation Bonds
Anne Burger Entrekin
Regional Managing Director
anne.burgerentrekin@hilltopsecurities.com
70 Northeast Loop 410, Suite 710
San Antonio, Texas 78216
Direct: 210.308.2200
May 24, 2021 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

2. Member FINRA / SIPC / NYSE
© 2021 Hilltop Securities Inc.
All Rights Reserved
10-Year Constant Maturity Treasury
1

3. Member FINRA / SIPC / NYSE
© 2021 Hilltop Securities Inc.
All Rights Reserved
Taxable MMD Yield Curve
2

4. Member FINRA / SIPC / NYSE
© 2021 Hilltop Securities Inc.
All Rights Reserved
Projected I&S Tax Rate Impact for a $13,250,000 Taxable Bond Issue
3
Estimated
Projected Estimated I&S Tax
Assessed Estimated Tax Supported Tax Supported I&S Tax Rate
FYE Valuation
(1)
AV Growth Debt Service
(2)
Principal Interest Total Debt Service Rate
(5)
Change FYE
2021 1,793,437,955
$ 1.50% 673,750
$ 673,750
$ 0.0500
$ -
$ 2021
2022 1,820,339,524 1.50% 427,500 515,000
$ 315,986
$ 830,986
$ 1,258,486 0.0698 0.02 2022
2023 1,847,644,617 1.50% 426,700 565,000 289,602 854,602 1,281,302 0.0700 0.00 2023
2024 1,875,359,286 1.50% 422,850 590,000 287,102 877,102 1,299,952 0.0700 0.00 2024
2025 1,903,489,676 1.50% 428,850 605,000 282,556 887,556 1,316,406 0.0698 0.00 2025
2026 1,922,524,573 1.00% 429,400 625,000 275,787 900,787 1,330,187 0.0699 0.00 2026
2027 1,941,749,818 1.00% 431,400 645,000 266,909 911,909 1,343,309 0.0698 0.00 2027
2028 1,961,167,316 1.00% 432,800 670,000 255,809 925,809 1,358,609 0.0699 0.00 2028
2029 1,980,778,990 1.00% 433,600 695,000 242,764 937,764 1,371,364 0.0699 0.00 2029
2030 2,000,586,779 1.00% 438,800 715,000 228,287 943,287 1,382,087 0.0697 0.00 2030
2031 2,020,592,647 1.00% 438,200 745,000 212,250 957,250 1,395,450 0.0697 0.00 2031
2032 2,040,798,574 1.00% 442,000 775,000 194,317 969,317 1,411,317 0.0698 0.00 2032
2033 2,061,206,559 1.00% - 370,000 180,528 550,528 550,528 0.0270 -0.04 2033
2034 2,081,818,625 1.00% - 375,000 171,564 546,564 546,564 0.0265 0.00 2034
2035 2,102,636,811 1.00% - 380,000 161,973 541,973 541,973 0.0260 0.00 2035
2036 2,123,663,179 1.00% - 390,000 151,772 541,772 541,772 0.0258 0.00 2036
2037 2,144,899,811 1.00% - 400,000 140,400 540,400 540,400 0.0254 0.00 2037
2038 2,166,348,809 1.00% - 410,000 127,939 537,939 537,939 0.0251 0.00 2038
2039 2,188,012,297 1.00% - 425,000 115,072 540,072 540,072 0.0249 0.00 2039
2040 2,209,892,420 1.00% - 435,000 101,802 536,802 536,802 0.0245 0.00 2040
2041 2,231,991,345 1.00% - 445,000 88,207 533,207 533,207 0.0241 0.00 2041
2042 2,254,311,258 1.00% - 465,000 73,715 538,715 538,715 0.0241 0.00 2042
2043 2,276,854,371 1.00% - 480,000 58,228 538,228 538,228 0.0239 0.00 2043
2044 2,299,622,914 1.00% - 495,000 42,222 537,222 537,222 0.0236 0.00 2044
2045 2,322,619,143 1.00% - 510,000 25,696 535,696 535,696 0.0233 0.00 2045
2046 2,345,845,335 1.00% - 525,000 8,652 533,652 533,652 0.0230 0.00 2046
6,267,144
$ 13,250,000
$ 4,299,140
$ 17,549,140
$ 23,816,284
$
- Maximum Tax Rate - 0.0700
$
- Estimated Tax Rate Increase - 0.0200
$
Notes:
(1) Certified Values provided by Bexar County Appraisal District.
(2) Net of existing self supporting debt service (utility fund portion) of outstanding General Obligation Debt Service.
(3) Assumes taxable "AAA" Current Market Rates as of 5/11/2021 with a projected TIC of 2.85%
(4) Estimated closing date of July 14, 2021 with principal and interest payments on August 15 and February 15 of each year starting in 2022.
(5) Actual FYE 2021 Tax Rate levied. Assumed Tax Collection Rate of: 99.05%
(6) Average life in years: 11.449 years
PRELIMINARY - for discussion purposes only.
$13,250,000
Proposed General Obligation Bond Issue
(3)(4)
Series 2021

5. Member FINRA / SIPC / NYSE
© 2021 Hilltop Securities Inc.
All Rights Reserved
Timetable of Events
4
DATE EVENT
Friday, April 9, 2021 Distribute first draft of POS to working group for comments.
Friday, April 23, 2021 Comments on first draft of POS due from working group.
Tuesday, April 27, 2021 Distribute second draft of POS to working group for comments.
Tuesday, May 11, 2021 Comments on second draft of POS due from working group.
Thursday, May 13, 2021 Distribute third draft of POS to working group for comments.
Send POS and related documents to Standard & Poor’s (“S&P”).
Monday, May 17, 2021 BCAD Protest Deadline.
Monday, May 24, 2021 Briefing City Council on bond issue status.
Wednesday, May 25, 2021 Call with S&P.
Wednesday, May 26, 2021 Comments on third draft of POS due from working group.
Friday, May 28, 2021 Distribute final draft of POS to working group for comments.
Thursday, June 3, 2021 Receive rating.
Friday, June 4, 2021 Comments on final draft of POS due from working group.
Monday, June 7, 2021 POS goes to i-Deal for posting.
Monday, June 14, 2021 Bond Sale.
Regular meeting to conduct sale of General Obligation Bonds. Consider the adoption of the
Ordinance Authorizing Issuance of General Obligation Bonds and approving and authorizing the
execution of the Bond Purchase Agreement.
Wednesday, July 14, 2021 Closing date; City delivers the Bonds to Underwriter and receives funds.
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= Key Dates
= Holidays
July
June
May

6. Member FINRA / SIPC / NYSE
© 2021 Hilltop Securities Inc.
All Rights Reserved
 Interest rates are still near historical lows
 The markets have experienced positive movements over the last couple of
weeks
 Currently, there is more demand for municipal bonds than supply
 Given the City’s AAA rating, we are recommending a competitive method of
sale
 We will be coordinating with City Staff to prepare for the call with S&P
 We plan on posting the preliminary official statement approximately two
weeks prior to the sale date
 We reach out to potential bidders ensuring there are aware of the
bond sale and to answer any questions they may have
Summary
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