Upcoming Financial Transactions

Finance DepartmentKelly Dowe, Director

March 6, 2012

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Annual Financing Plan

Department SeriesSize

Anticipated Closing($ millions)

HAS 2012A,B,C 520 April 2012GO 2012A,B 300-500 May 2012 CEF 2012A 40-50 May 2012CUS 2012W 200-300 TBDGO 2010 CO 10 June 2012GO TRANS 2012 TBD July 2012

CUS* TWDB 2012X 50 Sept. 2012CUS* TWDB 2012Y 49 Sept. 2012CUS 2012Z 132 Dec. 2012

Total 1,301 - 1,611

* The referenced transactions are new issues that will be placed through the Texas Water Development Board.

• Commercial paper (CP) has provided an expedient, cost–effective method of accessing cash and providing interim financing. The CP notes are later refinanced into fixed rate bonds that match the useful life of the project or equipment being financed. This transaction represents the normal refunding of these commercial paper notes.

• On June 16, 2010, City Council approved the issuance of the City of Houston Certificate of Obligation (Demolition Program) Series 2010. The note had a 24 month maturity and a maturity date of June 30, 2012. The Finance Working Group (FWG) is considering either refunding this note into long-term bonds in conjunction with the PIB Series 2012 or extending the maturity date of the note.

• Additionally we will be refinancing some currently outstanding bonds at lower current market interest rates which result in present value savings currently estimated at $14.1 million.

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General Obligation Refunding Bonds Series 2012

• Below is a breakdown of proposed components:

• Assuming conducive market conditions, the FWG will propose to City Council a refinancing that results in positive present value savings. RCA is expected to be brought before Council in March.

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General Obligation Refunding Bonds Series 2012

Component being Refunded Up To UseRefund CP Series G, H, J $130,000,000 CIP/DrainageRefund CP Series E $60,000,000 EAP

Total $190,000,000

Current/Advance Refundings $300,000,000 Certificate of Obligation Series 2010 $10,000,000 Demolition Program

Total $310,000,000

Grand Total $500,000,000

• The issuance of the proposed Convention and Entertainment Facilities Department Hotel Occupancy Tax (HOT) and Special Revenue Refunding Bonds, Series 2012 are in response to favorable market conditions.

• The FWG recommends issuing the Series 2012 Bonds to refinance the currently outstanding Series 2001B Bonds at lower current market interest rates and produce an estimated $4.9 million of present value savings, which constitutes an estimated 11.9% saving.

• RCA is expected to be brought before Council in March.

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C & E Revenue Refunding Bonds Series 2012