Term Sheet
City of Buda, Texas
May 17, 2016
Term Sheet Borrower:
City of Buda, Texas (the “City”)
Amount:
Approximately $1,300,000 of the City’s Combination Tax & Revenue Certificates of Obligation, Series 2016 (the “Certificates”)
Purpose:
Constructing improving and/or extending the City's waterworks and sewer system, including a connecting water line from FM 967 to the existing ground storage tank at Garlic Creek and increasing the pumping capacity at the Garlic Creek and Bonita Vista pump stations including the acquisition of any necessary easements or land and the payment of professional services in connection therewith including legal, fiscal and engineering fees and the costs of issuing the Certificates.
Tax-Status:
Tax-Exempt but not “qualified tax-exempt obligations” (QTEO/Bank Qualified)
Security:
Payable from the levy and collection of a direct ad valorem tax, within the limits prescribed by law, on all taxable property within the City and a limited pledge (not to exceed $1,000) of the surplus revenues of the City's Water and Wastewater System.
Term:
Principal pays 08-15-2017 through 08-15-2031
First Coupon:
02-15-2017
Interest Rate:
NOT Bank Qualified. Propose a tax-exempt, fixed rate or series of rates that upon the verbal commitment from the City will be honored by proposer through Closing Date. Interest to accrue upon delivery of the Certificates.
Amortization:
Annual payments of principal on August 15, 2017 through August 15, 2031, inclusive, with semiannual interest payments beginning February 15, 2017 and each August 15 and February 15 thereafter until maturity, or prior to redemption. See attached Sample Debt Service Schedule for purposes of illustration.
Award Date:
Tuesday, June 7, 2016
Closing Date:
Anticipate June 29, 2016 closing date, but subject to Texas Attorney General approval.
Prepayment:
Callable on or after August 15, 2021 at the option of the City. Bidders may bid alternative call provisions. City would like to see alternative call provisions if it reduces interest expense.
Paying Agent:
Please indicate your interest in serving as paying agent (and any fees for this service); otherwise, the City will select the Paying Agent/Registrar for the Certificates.
Bond Ratings:
None on this issue. City is currently rated AA by Standard & Poor’s on outstanding issues.
Bond Insurance:
None on this issue
Reporting Requirements:
None on this issue
Document/ Covenant Provisions:
Conditions Precedent to Funding:
Please indicate any provisions, covenants or conditions being requested to include in the authorizing documents as part of this bid.
Executed documentation satisfactory to the City, Bond Counsel and the Purchaser including, but not limited, to the following: Ordinance adopted by the City Council which contains all relevant provisions governing the financing (rate, term, amortization, security, prepayment provisions, and all other conditions, warranties and covenants as are usual and customary for transactions of the same general type) No Litigation Certificate
Execute Commitment and Investment Letter by Purchaser Opinion of the Texas Attorney General as to validity of the financing under Texas State Law No Material Adverse Change in the City’s financial condition Opinion of Bond Counsel as to Tax-Exemption of the Certificates No CUSIPs Certificates are not rated or insured or qualified for DTC Certificates are not considered a security under federal law Additionally, pursuant to Section 2252.908, Texas Government Code, the City may not award the Certificates to a bidder unless the bidder submits an executed and notarized Certificate of Interested Parties Form 1295 to the City as prescribed by the Texas Ethics Commission.
Please reply to Sidonna Foust at [email protected] and copy Jennifer Douglas at [email protected] by Monday, June 6, 2016 at 10am. Attachment: (1) Sample Debt Service, preliminary subject to change. (2) FYE 2015 audit.
City of COMPETITIVE BID FORM
Interest Rate: Bidders may bid as a term bond with one interest rate or with individual maturities at their option.
MATURITY DATE August 15, 2017 August 15, 2018 August 15, 2019 August 15, 2020 August 15, 2021 August 15, 2022 August 15, 2023 August 15, 2024 August 15, 2025 August 15, 2026 August 15, 2027 August 15, 2028 August 15, 2029 August 15, 2030 August 15, 2031
COUPON _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______%
Call Option: Certificates callable anytime on or after ____________________________ at __________%.
Paying Agent: Bank will not serve as paying agent. OR (Please indicate which) Bank will serve as paying agent for fee of $__________________________________.
Additional Fees: Bank will charge City fees in the amount of $___________________ for _________________________ (list what the fees are for, i.e., legal review, etc.)
Preliminary
City of Buda, Texas $1,300,000 Combination Tax & Limited Revenue Certificates of Obligation, Series Preliminary, subject to change
Debt Service Schedule
Part 1 of 2
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
04/12/2016 02/15/2017 08/15/2017 09/30/2017 02/15/2018 08/15/2018 09/30/2018 02/15/2019 08/15/2019 09/30/2019 02/15/2020 08/15/2020 09/30/2020 02/15/2021 08/15/2021 09/30/2021 02/15/2022 08/15/2022 09/30/2022 02/15/2023 08/15/2023 09/30/2023 02/15/2024 08/15/2024 09/30/2024 02/15/2025 08/15/2025 09/30/2025 02/15/2026 08/15/2026 09/30/2026 02/15/2027 08/15/2027 09/30/2027 02/15/2028 08/15/2028 09/30/2028 02/15/2029 08/15/2029 09/30/2029
65,000.00 75,000.00 80,000.00 80,000.00 80,000.00 85,000.00 85,000.00 85,000.00 90,000.00 90,000.00 95,000.00 95,000.00 95,000.00 -
2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% -
24,618.75 14,625.00 13,893.75 13,893.75 13,050.00 13,050.00 12,150.00 12,150.00 11,250.00 11,250.00 10,350.00 10,350.00 9,393.75 9,393.75 8,437.50 8,437.50 7,481.25 7,481.25 6,468.75 6,468.75 5,456.25 5,456.25 4,387.50 4,387.50 3,318.75 3,318.75 -
24,618.75 79,625.00 13,893.75 88,893.75 13,050.00 93,050.00 12,150.00 92,150.00 11,250.00 91,250.00 10,350.00 95,350.00 9,393.75 94,393.75 8,437.50 93,437.50 7,481.25 97,481.25 6,468.75 96,468.75 5,456.25 100,456.25 4,387.50 99,387.50 3,318.75 98,318.75 -
104,243.75 102,787.50 106,100.00 104,300.00 102,500.00 105,700.00 103,787.50 101,875.00 104,962.50 102,937.50 105,912.50 103,775.00 101,637.50
16 CO placement for bid s | SINGLE PURPOSE | 5/17/2016 | 10:58 AM
Specialized Public Finance Inc. Austin, Texas
Page 1
Preliminary
City of Buda, Texas $1,300,000 Combination Tax & Limited Revenue Certificates of Obligation, Series Preliminary, subject to change
Debt Service Schedule
Part 2 of 2
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
02/15/2030 08/15/2030 09/30/2030 02/15/2031 08/15/2031 09/30/2031
100,000.00 100,000.00 -
2.250% 2.250% -
2,250.00 2,250.00 1,125.00 1,125.00 -
2,250.00 102,250.00 1,125.00 101,125.00 -
104,500.00 102,250.00
Total
$1,300,000.00
-
$257,268.75
$1,557,268.75
-
Yield Statistics Bond Year Dollars Average Life Average Coupon
$11,434.17 8.796 Years 2.2500000%
Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC)
2.2500000% 2.2490824% 2.2490824% 2.6275561%
IRS Form 8038 Net Interest Cost Weighted Average Maturity
2.2500000% 8.796 Years
16 CO placement for bid s | SINGLE PURPOSE | 5/17/2016 | 10:58 AM
Specialized Public Finance Inc. Austin, Texas
Page 2
May 17, 2016
Term Sheet Borrower:
City of Buda, Texas (the “City”)
Amount:
Approximately $1,300,000 of the City’s Combination Tax & Revenue Certificates of Obligation, Series 2016 (the “Certificates”)
Purpose:
Constructing improving and/or extending the City's waterworks and sewer system, including a connecting water line from FM 967 to the existing ground storage tank at Garlic Creek and increasing the pumping capacity at the Garlic Creek and Bonita Vista pump stations including the acquisition of any necessary easements or land and the payment of professional services in connection therewith including legal, fiscal and engineering fees and the costs of issuing the Certificates.
Tax-Status:
Tax-Exempt but not “qualified tax-exempt obligations” (QTEO/Bank Qualified)
Security:
Payable from the levy and collection of a direct ad valorem tax, within the limits prescribed by law, on all taxable property within the City and a limited pledge (not to exceed $1,000) of the surplus revenues of the City's Water and Wastewater System.
Term:
Principal pays 08-15-2017 through 08-15-2031
First Coupon:
02-15-2017
Interest Rate:
NOT Bank Qualified. Propose a tax-exempt, fixed rate or series of rates that upon the verbal commitment from the City will be honored by proposer through Closing Date. Interest to accrue upon delivery of the Certificates.
Amortization:
Annual payments of principal on August 15, 2017 through August 15, 2031, inclusive, with semiannual interest payments beginning February 15, 2017 and each August 15 and February 15 thereafter until maturity, or prior to redemption. See attached Sample Debt Service Schedule for purposes of illustration.
Award Date:
Tuesday, June 7, 2016
Closing Date:
Anticipate June 29, 2016 closing date, but subject to Texas Attorney General approval.
Prepayment:
Callable on or after August 15, 2021 at the option of the City. Bidders may bid alternative call provisions. City would like to see alternative call provisions if it reduces interest expense.
Paying Agent:
Please indicate your interest in serving as paying agent (and any fees for this service); otherwise, the City will select the Paying Agent/Registrar for the Certificates.
Bond Ratings:
None on this issue. City is currently rated AA by Standard & Poor’s on outstanding issues.
Bond Insurance:
None on this issue
Reporting Requirements:
None on this issue
Document/ Covenant Provisions:
Conditions Precedent to Funding:
Please indicate any provisions, covenants or conditions being requested to include in the authorizing documents as part of this bid.
Executed documentation satisfactory to the City, Bond Counsel and the Purchaser including, but not limited, to the following: Ordinance adopted by the City Council which contains all relevant provisions governing the financing (rate, term, amortization, security, prepayment provisions, and all other conditions, warranties and covenants as are usual and customary for transactions of the same general type) No Litigation Certificate
Execute Commitment and Investment Letter by Purchaser Opinion of the Texas Attorney General as to validity of the financing under Texas State Law No Material Adverse Change in the City’s financial condition Opinion of Bond Counsel as to Tax-Exemption of the Certificates No CUSIPs Certificates are not rated or insured or qualified for DTC Certificates are not considered a security under federal law Additionally, pursuant to Section 2252.908, Texas Government Code, the City may not award the Certificates to a bidder unless the bidder submits an executed and notarized Certificate of Interested Parties Form 1295 to the City as prescribed by the Texas Ethics Commission.
Please reply to Sidonna Foust at [email protected] and copy Jennifer Douglas at [email protected] by Monday, June 6, 2016 at 10am. Attachment: (1) Sample Debt Service, preliminary subject to change. (2) FYE 2015 audit.
City of COMPETITIVE BID FORM
Interest Rate: Bidders may bid as a term bond with one interest rate or with individual maturities at their option.
MATURITY DATE August 15, 2017 August 15, 2018 August 15, 2019 August 15, 2020 August 15, 2021 August 15, 2022 August 15, 2023 August 15, 2024 August 15, 2025 August 15, 2026 August 15, 2027 August 15, 2028 August 15, 2029 August 15, 2030 August 15, 2031
COUPON _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______% _______%
Call Option: Certificates callable anytime on or after ____________________________ at __________%.
Paying Agent: Bank will not serve as paying agent. OR (Please indicate which) Bank will serve as paying agent for fee of $__________________________________.
Additional Fees: Bank will charge City fees in the amount of $___________________ for _________________________ (list what the fees are for, i.e., legal review, etc.)
Preliminary
City of Buda, Texas $1,300,000 Combination Tax & Limited Revenue Certificates of Obligation, Series Preliminary, subject to change
Debt Service Schedule
Part 1 of 2
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
04/12/2016 02/15/2017 08/15/2017 09/30/2017 02/15/2018 08/15/2018 09/30/2018 02/15/2019 08/15/2019 09/30/2019 02/15/2020 08/15/2020 09/30/2020 02/15/2021 08/15/2021 09/30/2021 02/15/2022 08/15/2022 09/30/2022 02/15/2023 08/15/2023 09/30/2023 02/15/2024 08/15/2024 09/30/2024 02/15/2025 08/15/2025 09/30/2025 02/15/2026 08/15/2026 09/30/2026 02/15/2027 08/15/2027 09/30/2027 02/15/2028 08/15/2028 09/30/2028 02/15/2029 08/15/2029 09/30/2029
65,000.00 75,000.00 80,000.00 80,000.00 80,000.00 85,000.00 85,000.00 85,000.00 90,000.00 90,000.00 95,000.00 95,000.00 95,000.00 -
2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% 2.250% -
24,618.75 14,625.00 13,893.75 13,893.75 13,050.00 13,050.00 12,150.00 12,150.00 11,250.00 11,250.00 10,350.00 10,350.00 9,393.75 9,393.75 8,437.50 8,437.50 7,481.25 7,481.25 6,468.75 6,468.75 5,456.25 5,456.25 4,387.50 4,387.50 3,318.75 3,318.75 -
24,618.75 79,625.00 13,893.75 88,893.75 13,050.00 93,050.00 12,150.00 92,150.00 11,250.00 91,250.00 10,350.00 95,350.00 9,393.75 94,393.75 8,437.50 93,437.50 7,481.25 97,481.25 6,468.75 96,468.75 5,456.25 100,456.25 4,387.50 99,387.50 3,318.75 98,318.75 -
104,243.75 102,787.50 106,100.00 104,300.00 102,500.00 105,700.00 103,787.50 101,875.00 104,962.50 102,937.50 105,912.50 103,775.00 101,637.50
16 CO placement for bid s | SINGLE PURPOSE | 5/17/2016 | 10:58 AM
Specialized Public Finance Inc. Austin, Texas
Page 1
Preliminary
City of Buda, Texas $1,300,000 Combination Tax & Limited Revenue Certificates of Obligation, Series Preliminary, subject to change
Debt Service Schedule
Part 2 of 2
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
02/15/2030 08/15/2030 09/30/2030 02/15/2031 08/15/2031 09/30/2031
100,000.00 100,000.00 -
2.250% 2.250% -
2,250.00 2,250.00 1,125.00 1,125.00 -
2,250.00 102,250.00 1,125.00 101,125.00 -
104,500.00 102,250.00
Total
$1,300,000.00
-
$257,268.75
$1,557,268.75
-
Yield Statistics Bond Year Dollars Average Life Average Coupon
$11,434.17 8.796 Years 2.2500000%
Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC)
2.2500000% 2.2490824% 2.2490824% 2.6275561%
IRS Form 8038 Net Interest Cost Weighted Average Maturity
2.2500000% 8.796 Years
16 CO placement for bid s | SINGLE PURPOSE | 5/17/2016 | 10:58 AM
Specialized Public Finance Inc. Austin, Texas
Page 2
