R2020-203 2020-09-28 RESOLUTION NO. R2020-203
A Resolution of the City Council of the City of Pearland, Texas, declaring
intention to reimburse project expenditures from proceeds of future tax-
exempt obligations.
WHEREAS, the City plans to make certain capital expenditures described on Exhibit A
(herein, the "Project"), the maximum aggregate cost of which is expected to be approximately
$[120,400,000.00];
WHEREAS, the City anticipates providing funds to permanently finance these capital costs
of the Project by issuing after the date hereof certain certificates of obligation and tax-exempt
bonds, expected to be issued by the City in fiscal year 2021 and currently expected to have a
maximum aggregate principal amount of$[120,400,000.00] (herein, the"Tax-Exempt Obligations"),
the proceeds of which are expected to be used to pay costs of the Project and costs of issuance of
the Tax-Exempt Obligations;
WHEREAS, no funds of the City are, or are reasonably expected to be, allocated, reserved,
or otherwise set aside in the City's budget on a long-term basis to pay the costs of the Project;
WHEREAS, the Tax-Exempt Obligations will be payable from certain revenues and ad
valorem taxes levied, assessed and collected by the City to pay debt service on the Tax-Exempt
Obligations;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and
prior to the issuance of the Tax-Exempt Obligations will it be obligated to pay certain costs
constituting expenditures properly chargeable to a capital account (under general federal income
tax principles) in connection with the Project(the "Expenditures");
WHEREAS, the money to be used to pay the Expenditures described in Exhibit A of this
Resolution for the Project is in the City's General Fund, the general purpose and function of which
is to pay general operating and maintenance expenditures of the City and such money is not
appropriated for any other purpose; and in the City's Capital Project Funds;
WHEREAS, the City reasonably expects that the City will reimburse the General Fund and
the City's Capital Project Funds, respectively, for the Expenditures with proceeds of the Tax-
Exempt Obligations; and
WHEREAS, after the issuance of the Tax-Exempt Obligations the City will: (1) evidence
each allocation of proceeds of the Tax-Exempt Obligations to the reimbursement of the respective
Expenditures with separate entries in its books and records maintained with respect to the Tax-
Exempt Obligations and (2) identify in each such entry the actual prior Expenditures being
reimbursed or the fund from which the Expenditures were made; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The City Council hereby adopts the findings set out in the preamble hereof
and declares its intent within the meaning of Treasury Regulation § 1.150-2, as promulgated under
the Internal Revenue Code of 1986, as amended (the "Code"), to issue approximately
$[120,400,000.00] aggregate principal amount of Tax-Exempt Obligations, all of which will be used
to pay the costs of the Project or to reimburse the City for the Expenditures paid in connection with
the Project prior to the issuance of the Tax-Exempt Obligations and to pay costs of issuance of the
Tax-Exempt Obligations.
Section 2. The City will maintain this Resolution at the office of the City at 3519 Liberty
Drive, Pearland, Texas 77581 and make it continuously available for inspection by the general
public during normal business hours on business days beginning within 30 days after the date of
this Resolution.
PASSED, APPROVED and ADOPTED this the 2e day of&eltroSer, A.D., 2020.
TOM REID
MAYOR
ATTEST:
2
CRYS LROAN
CITY SECRETARY
APPROVED AS TO FORM:
65L-----
DARRIN M. COKER """
CITY ATTORNEY QER NO,,,''%
J,o
••••..i.1
7 October 2020
To: Mayor and City
Council members
Outline of process, rationale, and
Memo
specifics for the traditional Intent to
Reimburse facilitating the FY 21 Budget '�A
and CIP. Clay 4
•
To: Clay Pearson, City anager _ _' \1'
From: T
John McCarter, it erector of Finance Est. �eq�
CC: Jon Branson, deputy City Manager
Trent Epper .n, Assistant City Manager
Date: October 7 2020
Re: Intent to Reimburse for Bond Projects
The purpose of this memorandum is to outline the amount and process for the Fiscal Year 2021
Intent to Reimburse from Bond Proceeds.
The Intent to Reimburse is the standard resolution obligating the City to follow-through with the
budget and reimburse itself for moneys advanced to move forward projects and then issue the
debt at a later time during FY21. Essentially it is a formal commitment to re-pay the City for
expenditures made on these projects between now and when the debt is formally sold. The timing
is advantageous for the City to proceed in this way so that the actual amount of debt proceeds is
issued once projects are designed and/or bid for construction. The resolution does not approve
contracts or expenditures themselves, which will still need to be authorized by Council.
The chart below outlines the standard Capital Financing process followed by the City. The FY21
Budget was approved by City Council at the September 28, 2020 Regular Meeting, which includes
the budget allocation at the Fund level for expenditures.
Capital Financing Process Overview
Recurring Capital Financing White Paper
co 2--44:114e-20204-GIR-Reesentatiefl-&-INSGUSSiefl
U C
_ C
as
43
w• • October 2020: Intent to Reimburse Approved
Authorizes work to begin on projects funded by this issuance
• May 2021:Annual Debt Issuance Approved
.s • June 2021: Notices Posted, Rating/Due Diligence Calls
a • July 2021: Sale of Debt
• Fiscal Year 2022: Payments for FY21 Debt Begin
The anticipated project expenditures for this fiscal year have been reviewed again, since the
budget adoption, and adjusted based on the most up-to-date information. As a result, the total
amount of the anticipated FY21 issuance increased from $118.9 million to $120.4 million. This
Intent to Reimburse includes Permanent Improvement Bonds (2019 and 2007) to be sold in the
amount of$24,536,600, Certificates of Obligation (City) to be sold total $9,257,400, Certification
of Obligation (TIRZ reimbursable) to be sold total $22,991,964, and Water/Sewer Revenues
Bonds total $63,553,500; which includes potential low-interest Texas Water Development Board
bonds to be sold. As the City Council is aware, not all those issue types are property-tax backed.
The FY21 Intent to Reimburse
Although the total of the anticipated spend for 2020 is $120.33 million, you will note that the
resolution is for$120.4 million. Bond Counsel generally rounds up to allow for issuance costs and
to provide a small cushion. The cushion is not intended to allow us to issue more bonds than
authorized by the council, but instead to provide a little room under the resolution in case facts
change after the resolution is adopted. Any change still would have to be approved by council.
Again, projects funded with these bonds have already begun or will begin prior to the actual sale
of the bonds. To be reimbursed from future bond proceeds, the City Council must formally adopt
a resolution declaring the City's intention to be reimbursed from future bond proceeds. Sale of the
bonds is estimated to begin in May 2021 (a separate discussion of the timing of bond sale will be
made in another memo). Failing to do so would require these obligations to be paid from other
unbudgeted sources. The Intent to Reimburse resolution is an annual requirement.
The intent to reimburse from future bond proceeds is based on the FY21 budget and reviewed
prior to this Intent to Reimburse. Amounts included herein have been adjusted based on the most
up-to-date information.
Even though these dollars are based on FY21 annual appropriations and anticipated scheduling
and estimate of costs, capital projects may typically run over a period of years to complete. There
are several projects within the capital program that fall under the multi-year project. A few
examples are Mykawa Road Widening; Street Reconstructions for Sleepy Hollow, Linwood Oaks
and Orange Circle; and Barry Rose & JHEC Water Reclamation Facility Expansions will carry-
over into future fiscal years with additional bonds to be sold for financing completion. The adopted
City Capital Improvement Plan details all the multi-year projects. The Intent to Reimburse
resolution is based on budgeted project amounts plus issuance costs and is just for the FY21
anticipated expenditures.
Staff anticipates bringing back the FY21 Capital Project Debt Financing Sale in May 2020 for City
Council consideration.
Page 2
2
RESOLUTION NO. R2020-203
A Resolution of the City Council of the City of Pearland, Texas, declaring
intention to reimburse project expenditures from proceeds of future tax-
exempt obligations.
WHEREAS, the City plans to make certain capital expenditures described on Exhibit A
(herein, the "Project"), the maximum aggregate cost of which is expected to be approximately
$[120,400,000.00];
WHEREAS, the City anticipates providing funds to permanently finance these capital costs
of the Project by issuing after the date hereof certain certificates of obligation and tax-exempt
bonds, expected to be issued by the City in fiscal year 2021 and currently expected to have a
maximum aggregate principal amount of$[120,400,000.00] (herein, the "Tax-Exempt Obligations"),
the proceeds of which are expected to be used to pay costs of the Project and costs of issuance of
the Tax-Exempt Obligations;
WHEREAS, no funds of the City are, or are reasonably expected to be, allocated, reserved,
or otherwise set aside in the City's budget on a long-term basis to pay the costs of the Project;
WHEREAS, the Tax-Exempt Obligations will be payable from certain revenues and ad
valorem taxes levied, assessed and collected by the City to pay debt service on the Tax-Exempt
Obligations;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and
prior to the issuance of the Tax-Exempt Obligations will it be obligated to pay certain costs
constituting expenditures properly chargeable to a capital account (under general federal income
tax principles) in connection with the Project (the"Expenditures");
WHEREAS, the money to be used to pay the Expenditures described in Exhibit A of this
Resolution for the Project is in the City's General Fund, the general purpose and function of which
is to pay general operating and maintenance expenditures of the City and such money is not
appropriated for any other purpose; and in the City's Capital Project Funds;
3
WHEREAS, the City reasonably expects that the City will reimburse the General Fund and
the City's Capital Project Funds, respectively, for the Expenditures with proceeds of the Tax-
Exempt Obligations; and
WHEREAS, after the issuance of the Tax-Exempt Obligations the City will: (1) evidence
each allocation of proceeds of the Tax-Exempt Obligations to the reimbursement of the respective
Expenditures with separate entries in its books and records maintained with respect to the Tax-
Exempt Obligations and (2) identify in each such entry the actual prior Expenditures being
reimbursed or the fund from which the Expenditures were made; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The City Council hereby adopts the findings set out in the preamble hereof
and declares its intent within the meaning of Treasury Regulation § 1.150-2, as promulgated under
the Internal Revenue Code of 1986, as amended (the "Code"), to issue approximately
$[120,400,000.00] aggregate principal amount of Tax-Exempt Obligations, all of which will be used
to pay the costs of the Project or to reimburse the City for the Expenditures paid in connection with
the Project prior to the issuance of the Tax-Exempt Obligations and to pay costs of issuance of the
Tax-Exempt Obligations.
Section 2. The City will maintain this Resolution at the office of the City at 3519 Liberty
Drive, Pearland, Texas 77581 and make it continuously available for inspection by the general
public during normal business hours on business days beginning within 30 days after the date of
this Resolution.
PASSED, APPROVED and ADOPTED this the day of , A.D., 2020.
TOM REID
MAYOR
ATTEST:
2
4
CRYSTAL ROAN
CITY SECRETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
3
5
EXHIBIT A
Description of Expenditures to be Reimbursed
PROJECT EXPECT TO
REIMBURSE
Fire Station#4 7,184,000
Police Training Center 350,000
Clear Creek Trail(North of Barry Rose WRF to UHCL Campus) 500,000
Safe Routes to School 773,400
Broadway Expansion-SH 288 to SH 35 -
Traffic Signal Upgrades Program FY21 450,000
Certificates of Obligations Total 9,257,400
Mykawa Road Widening-BW8 to FM 518 881,600
2007 General Obligation Total 881,600
Shadow Creek Trail Phase II -
Shadow Creek Library 20,540,000
Shadow Creek Parkway Landscaping,Street Lighting&Sidewalks -
Shadow Creek Ranch Sidewalk Extensions 932,464
Intersection Improvements in Shadow Creek Ranch 1,519,500
TIRZ Reimbursable Certificates of Obligation Total 22,991,964
Piper Road Drainage 800,000
Mimosa Acres Drainage Improvements 1,020,000
Willowcrest Subdivision Drainage Improvements 3,000,000
West Lea Subdivision Drainage Improvements 1,200,000
Cowarts Creek Detention Pump Station Generator 200,000
Park Equipment Recapitalization Program 500,000
Animal Services Shelter 9,000,000
Fire Training Bum Building Phase 1 1,170,000
Street Reconstruction-Linwood Oaks and Orange Circle 2,000,000
Pearland Parkway Traffic Circle Modifications 2,000,000
Street Reconstruction-Sleepy Hollow 2,765,000
2019 General Obligation Total 23,655,000
Bailey Water Plant Improvements 4,280,000
Liberty Elevated Storage Tank Rehabilitation 975,000
Liberty Ground Storage Tank Rehabilitation 775,000
South Corrigan Subdivision Transite Pipe Water Line Replacement 3,350,000
Westwood Village Water Quality Program 925,000
Barry Rose WRF Expansion 14,257,500
JHEC WRF Expansion 24,930,000
Longwood Water Reclamation Facility Decommissioning 6,500,000
Miller Ranch Regional Lift Station Odor Control&Rehabilitation 1,540,000
Shadow Creek Regional Lift Station Generator 1,421,000
Bailey Sewer Line-Veterans to Bailey Water Plant 600,000
Sanitary Sewer Rehabilitation-Old Town District 4,000,000
Revenue Bonds Total 63,553,500
TOTAL $120,339,464
4
6
7 October 2020
To: Mayor and City
Council members
We explored scenarios for moving up by
Memo six months the sale of FY 21 bond
financing. Although interest rates are
O- -40
uncertain, there is certainty about several
To: Clay Pearson, C' Manager offsetting costs and implications. Thus,
recommending not advancing the
',l\!n From: John McCa r, Interim Director schedule at this time. Clay
TILX AS
lsr. 119h CC: Jon Bran:on, Deputy City Manager
Date: Oct.•-r 5, 2020
Re: Timing of Fiscal Year 2021 Capital Financing Debt Sale
The purpose of this memorandum is to provide a recommendation on behalf of Staff and the City's
Financial Advisor regarding the timing of the Fiscal Year 2021 Capital Financing Debt Sale. For
reasons listed below, Staff and the City's Financial Advisor are recommending keeping the
issuance in June 2021, rather than move it up to December 2020.
Historically, the City has conducted the debt sale in early Summer. In 2020, the first reading of
ordinances for the General Obligation (GO) and Water & Sewer (WS) bonds and the Notice of
Intent Authorization (a resolution)for the Certificates of Obligation (standard&TIRZ reimbursable)
was conducted in May, the second reading was in June, with presentation and approval of the
sale results in July and the closing and delivery in August.
During discussions regarding the City's latest refinancing, a request was made by City Council to
explore moving up the sale to take advantage of record low interest rates. As of this writing, the
Bond Buyers Index shows an index of 2.21%for GO Bonds and 2.71%for WS Bonds. These are
only 19 basis points and 27 basis points, respectively, off of the lowest rates seen in over 50
years. Moving up the process would mean that the first readings ordinances and resolutions would
come to City Council in November, the sale and the results would occur and be presented to
Council in December, with closing anticipated in January (timeline could change).
Although speculative, an analysis completed by the City's Financial Advisor shows if interest rates
moved upwards, the City could save in interest costs between $0.0005 and $0.0010 on the City's
tax rate over the life of the debt by moving up the issuance. In real dollars this would be a total
savings between $174K and $1.1 million, as shown below. The analysis includes only GO bond
sales being moved up.
January July 21 +50 bps July 21 +100 bps
2021 Results Difference Results Difference
Max Tax Rate: 0.4395 0.4400 +0.0005 0.4405 +0.0010
GO Bond Debt
Service: $26,518,781 $26,692,732 +$173,951 $27,617,124 +$1,098,343
The assumptions in the analysis keep the same assumptions that were used in the last tax rate
analysis, which was included in the Multi-Year Budget, with the exception of the interest rates on
the GO bonds. Details of this the analysis are attached to this memo.
1
The full amount realized would of course depend on how much, if at all, interest rates change
between now and the standard issuance in early summer. It is important to note for context that
since the discussion during refinancing in August 2020, the Federal Reserve has stated an
expectation for long-range (two-year horizon)forecast for maintaining low interest rates.
Although there could be a potential interest cost savings, there are other mitigating factors that
should be considered when making this decision.
Capitalized Interest. Due to the timing of a bond issue's first interest payment date and the
adoption of its tax rate, a City may be required to pay Capitalized Interest to offset the debt service
requirements due in the current FY 21 tax year. By law, the City approves a debt service tax rate
on the then current outstanding debt service requirements due in the next fiscal year. If the City
were to issue new money bonds (i.e., GO Bonds) prior to May 1, 2021, the debt issuance
would require an interest payment on September 1, 2021 (or 4-month interest payment,
otherwise, the City would have to make a longer than 10-month long interest payment, which
investors do not favor). The September 1, 2021 interest payment was not included in the
debt service tax rate calculation for FY21 and, as a result, the interest due would draw
down the City's debt service fund balance. Capitalized Interest is the amount of unbudgeted
interest that is added to the bond proceeds at the time of the sale of bonds. The Capitalized
Interest amount would be deposited into the City's debt service fund at the bond closing to be
used to pay for the September 1, 2021 interest payment. Although Capitalized Interest is a good
tool to allow the City to issue new money debt anytime while maintaining the City's fund balance,
it is included in the principal portion of the bonds increasing the size of the bond issue. In other
words, the City would have to finance (pay interest on interest) for the Capitalized Interest
amount over the life of the debt issuance, which, depending on the interest rate
environment, could be expensive.
Uncertainty around the 2020 national elections. The upcoming national elections, headlined
by the presidential election, could lead to tumult in the markets, which could impact interest rates,
either positively or negatively.
Issuance would take place before full Capital Improvement Plan (CIP) process is
completed. As a standard practice, Staff conducts a review of all authorized projects in the lead
up to the presentation. This process starts in October and runs through March/April. During this
time period, the amount needed for each project changes because of changes in project
schedules, responses to bids and changes in project budgets. As a result, the amount of the
issuance is usually lower than the amount approved in the CIP and in the Intent to Reimburse. If
the issuance is moved up, the City could issue more debt than needed for the projects this year.
This additional issuance could be redistributed to other projects but is restricted based on the type
of debt being issued as well as the stated purpose of the debt.
Staffing Priorities. Should the City move the issuance up, that would make three separate
issuances in calendar year 2020; the standard issuance in early summer, the refinancing currently
underway and this new issuance. Staff is absolutely equipped to move ahead with moving the
issuance up, if that is the direction, however doing so would require a reprioritization of Staff time
typically dedicated to Early budget Input Session, Year End and the Annual Audit.
In short, with the uncertainty of savings and the certainty of these other factors, we collectively
recommend to not advance the sale by the several months. The review and exercise to examine
was productive and worth the examination, but the total set of factors leads to the
recommendation here.
2
i
" "y`iiiiiika` Current Market Review
The Bond Buyer Index
January 1, 2000 To The Present
6.50
6.25 ` 1
6.001\ —Bond Buyer 20-Bond Index
5.75 —Bond Buyer 25-Bond Index
5.50
5.25
5.00
4.75
lilloil \
ti
4.50
.ti 4.25
1 4.00
3.75
3.50
3.25 f
3.00 4
2.75 Bond Buyer Index of 20-General Obligation Bonds u
High: 6.09%/Low: 2.02%/Average: 4.28% li
2.71/o
2.50
Bond Buyer Index of 25-Revenue Bonds
2.25 High: 6.48%/Low: 2.44%/Average: 4.77 2.21 O
%
2.00
1.75 I I I I I I I I I I I I I I I I I I I
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
The BBI 20 is published every Thursday. The rate consists of general obligation bonds maturing in 20 years with an average rating equivalent to Moody's "Aa2" and
S&P's "AA." The BBI 25 is also published every Thursday. The rate consists of revenue bonds maturing in 30 years with an average rating equivalent to Moody's
"Al"and S&P's "A+".
3
Current Market Rate Scenario
City of Peariand,Texas
2021-2025 Capital improvement Plan(Post 2020 Bond Sales)
Structured Debt-Accelerated Bonds Sales(Current Market Rates("CMR")of Interest)
Plus:2021-2025 Capital Improvement Plan(S190,510,513)
Fiscal Prior Year/ Assessed lax Rate per 2021 Sales(f) 2022 Sales 2023 Sales 2024 Saks 1 2025 Sale Plus: Reimbursements Debt
Year Beginning Estimated Valuation 5100 of Outstanding S19,407,600 S7,917,400 527,541,964 $35,007,176 533,468,489 516,970,000 59,756,258 54,836,016 515.875.000 S11,705.000 58.025.000 5-Year CIP for TIRZ Less: Total Ending Service
Eodiag Debt Sen ice Taxable Assessed Growth Assessed net 2021 GO 2021 CO 2021A CO(d) 2022 GO 2022 CO 2022A CO(d) 2023 GO 2023 CO 2024 GO 2024 CO 2025 CO (2020-2025) Related Capitalized Debt Service Debt Service Coverage
9/1 Fand Balance Valuation Rate(Y.) Value Obligatons(c) (r Currem Rates (o4.00% fir4.00% @450% @450% (0,4.00% G5.00e. (a•5.00% @5.00% (65.00% (a15.00% 5190510513 Projects(e) Interest Requirements Fuld Balance (%)
2020 55,426,608 S9,230,392,985 5.83% 0.4344 S38,627,258 S38,627,258 55,993,499 14.650%
2021 5,993,499 10,153,432,284 10.004/. 0.1150 40,910,514 $503,656 S503,656 S503,656 10,910,514 5,950,402 13.821%
2022 5,950,402 10,610336,736 4.50% 0.432S 40.440,208 1,013,250 S498,100 S1,101,800 2,613,150 43,053,358 7312,821 15.438%
2023 7312,824 11,087,801,889 4.50% 0.4395 40,080.780 1,012,000 495.600 1,101.800 02,000.663 S.999,788 S678.800 7,288,650 47.369,430 6,982.677 14.555%
2024 6,982,677 11531313,965 4.00% 0.4395 39,640,578 1.010,250 497,800 1,101,800 1,995,750 ,996,613 678,800 0702,500 S349,250 8332,763 47,973.341 7,593,270 15.391%
2025 7.593,270 11,934,909,954 3.50% 0.4300 38,879.466 1,012.875 499.600 1,101,800 1,999,938 .997,425 678,800 706,125 348,625 S.213,000 S897,250 10,455,438 49.334.903 7,397.031 15.072%
2026 7397,031 12192,957,252 3.00% 0.4150 37.938.659 1,039,125 520,600 1,101,800 2,003,000 ,997,113 678,800 709,000 347,750 .211,000 895,875 5635,250 11,139313 49,077,972 7,123,520 15.519%
2027 7,123.520 12538,816397 2.00% 0.3625 37,627,916 1,039,000 520,800 1,101,800 2,000,050 ,995,675 678,800 706,250 346,625 .212,875 898,625 633.000 11,133500 52,858350 45,903,066 7.012311 15.382%
2028 7.012311 12,664,204561 1.00% 03775 37310,850 1,038,125 520,600 1,101,800 2,001,088 .998000 678.800 707,875 345,250 ,213,500 895,500 635.125 11.135.663 2,858,350 45,588,162 6.858,612 15.138%
2029 6,858,612 12,664.204,561 0.3750 37,021.284 1,036,500 524,900 1,101,800 2,001,000 ,998,975 678,800 708,750 348500 .212,875 896,500 636,500 11,145,100 2,858350 05308,034 6.655,814 14.784%
2030. 6,655,814 15,235,748,134(a) 0.3125 49,298,712 2,296,750 920,600 28,095,900 4,995,825 4,764,925 17,309,400 1,098,875 463,375 ,445,000 1,198,750 632,250 63,221,650 67,499,175 45,021,187 6,407,174 15.435%
2031 6,407,174 15,235,748,131 0.2850 26,943,647 1,887,625 858,700 3,995363 3,501,950 897,875 120,875 347,000 I,21375 637150 14,568,013 41,511,659 5,833522 15.324%
2032 5,833,522 15,235,748,134 0.2550 25.474.691 1,680,500 808,000 2,999,163 2,998513 798,000 014,000 -295,875 63,375 636.375 12,593,800 38,068,491 4349,874 15.868%
2033 1349,874 15,235,748,134 0.1925 16,042,448 1329,500 547,600 2,873,888 2,674.588 770,125 397,125 ,245,500 97,125 634,750 11370,200 27,412,648 4,299,847 15.845%
2034 4,299,847 15,2.35148,134 0.1875 15.768,617 1329,875 546,700 2,872,600 2,674,263 771,750 395,125 ,249,500 96,250 632,375 11368438 27,137,054 3,806,122 15.497%
2035 3,806,122 15,235,748,134 0.1725 13,195345 1328,000 505,200 2,872375 2,670,338 772.125 397,500 146,625 99,01)0 634,125 11365188 24,560,632 3,717,1190 16,153%
2036 3,717,890 15,235,748,134 0.1610 11,646,995 1328,750 548,000 2,872,988 2,672,588 771,250 399,125 ,246,875 95,375 634,875 11369425 23,016,820 3,385,620 1,6.144%
2037 3385,620 15,235,748,134 0.1450 9,599,998 1327,000 550,000 2,871.213 2,670,788 774,000 395,125 ,250,000 95,375 034,625 11.371,125 20,971,123 2,949,066 15.176%
2038 2,949,066 15,235,748,134 0.1315 8,068.292 1327,625 546,300 2,870,938 2,674,713 770375 395500 ,246,000 98,750 633,375 11363575 19,431.867 2,116,872 15.997%
2039 2,116,872 15,235.748,134 0.0925 1,866,950 1.325500 546,900 2,872.938 2,674,138 770375 395,125 .249,750 95,500 636,000 11.366,225 13,233,175 1,959175 15.441%
2040 1,959,275 15,235,748,134 11.6885 1326,000 1325.500 546,700 2,869,988 2,673,950 773.750 398,875 146,125 95,625 632300 11363,013 12,689,013 1,779,965 15.511%
2041 1,779,965 15,235,748,134 0.0790 08,000 1327375 545,700 2.871.863 2.673,925 770.500 396,750 ,250,000 98,875 632,875 11367,863 11,475,863 1,483311 15.622%
2042 1,483311 15,235,748,134 0.0605 08,000 2,873,225 2,673,838 770,625 398,750 ,246,250 95,250 636,875 9,494,813 9,494,813 595,861 15.056%
2043 595,861 15,235,748,134 0.0254 08,000 773,875 399,750 ,249,750 99,625 634,500 3,957,500 3,957,500 423,065 15.229%
2041 423,065 15,235,748,134 0,0155 08,000 .245,375 96,875 635.750 2,778,000 2,778,000 94,715 14.904%
2045 94,715 15 235,7411,134 0.0015 08,000 635,500 635,500 635,500 36,325 0.000%
)Totals 5568,49,206 526518.781 511 588,400 536.910300 554,716.850 551.982.100 522,061,001 515524,04N 57,753,000' S25,122,875 018,430.875. S12.693.875 5203,302,056 576,074125 5774,541381
Average Tat Rate: _ 50,2837
Tax Rate Increase Over 43 Cents:1 50.0095
(a)Includes the taxable assessed values of the TIRZ ofI2,571,543,573(2020 estimated value)beginning in fiscal year 2030,once the TIRZ has been dissolved.For City operations,the O&M rate must presumably rise to offset the loss in odminstrative fee.
(b)4lcludes estimated Delinquent Tax Collections,Penalties and Interest,Uo9H Lease Payments,interest Income,Transfers for Fund 100 and 600.
(c)Includes estimated MUD Rebate payments.Arbitrage Services,Fiscal Agent Fees and excludes debt service requirements paid by the Water and Sewer System revenues.
(d)TIRZ related projects to be sold as Certificates of Obligation.Structured with a deferred ballot,principal payment date on March I,2030 and a call date of March 1,2026.
4
Current Market Rate plus 50 Basis Points Scenario
City of Pearland,Texas
2021-2025 Capital Improvement Plan(Post 202(1 Bond Sales)
Structured Debt-Accelerated Bonds Sales(Current Market Rates("C'SMR")of Interest plus 50 Basis Points)
Plus:2021-2025 Capital Improvement Plan(S190,510.513)
Fiscal Prior\'ear/ Assessed Tar Rate per 2021 Sales If) 202E Sales 2023 Saks 2024.Saks 2025 Sak Plus: Reimbursements 14ht
Veer Beginning Estimated Valuation $100 of Outstanding S19,407,600 $7,917A00 S2741,904 535.007,176 531,461,489 516,970,000 S9,756,258 54,836,626 515,875,000 511,705.000 S8,025,000 5-1/ear CI for TIRZ Total Ending Service
Ending Debt Senke 'arable,\sassed Growth .Assessed net 2021 GO 2021 CO 2021A CO(d) 2022 CO 202E CO 2022A CO(d) 2023 CO 2023 CO 2024 GO 2024 CO 2025 CO (2020-2025) Related Debt Service Debt Service Coverage
9/I Fund Balance Valuation Rate(%) Value OMlgallona lei a CS1R 00.56°% a 4,011% r 4.00% (d 4.50% @ 4.50% q 4.00% /9 5.00% EA 5.00•/. (0?5.00% (0 5.00-, 4.5.00% S190,510,513 Projects(e) Requirements Fund Balance (''/s)
2020 S5.426,608 S9,230392,985 5.83°° 0.4344 038,627,256 538,627,258 55,993,499 14.650%
2021 5.993,499 10,153,432,284 10.00% 0.4150 40,910,514 40.910.514 5,950,402 13.811%
2022 5,950,402 10,610,336,736 4.50% 0.4325 40,440.208 91.045,607 S498,100 S1,101.800 'Z S2,645,507 43.085,715 7,280.467 15.358%
2023 7,280,467 11,087,801,889 4.30% 0.4400 40,080,780 1,047,125 095,600 1,101.800 52.000.663 51.999,788 $678.800 7323,775 47,404555 6,968347 14.514%
2024 6,968347 11531313,965 4.00% 0.4400 39,640,578 1,049,500 497,800 1,101,800 1,995,750 1,996.613 678,000 S702500 5349,250 8372,013 48,012.591 7,594,997 15.384%
2025 7,594,997 11,934,909,954 3.50% 0A300 38,879,466 1,046,250 499,600 1,101.800 1,999.938 1,997,425 678.800 706,125 348,625 S1213.000 S897,250 10,4811.813 49368.278 7365384 15.001%
2026 7,365384 12292,957252 3.00% 0A150 37,938,659 1,062,000 520,60D 1,101,800 2,003.000 1,997,113 678,800 709,000 347,750 1211,000 895,875 $635250 11,162,188 49,100.847 7.068.998 15.392%
2027 7,068.998 12,538,816,397 2.00% 03825 37,627,916 1,061.625 520.800 1,101.800 2.000.050 1,995,675 678,800 706250 346,625 1212,875 898,625 633,000 11,156,125 52,858350 45,925.691 6.935,163 15205%
2028 6,935.163 12.664204561 1.00% 0_3500 37310,850 1,060500 520,600 1,101,800 2,001.088 1.998,000 678,800 707,875 345250 1213.500 895,500 635.125 11,158.038 2,858350 15,610,537 7.061,977 15.577%
2029 7,061,977 12,664204561 03750 37,021284 1,063,500 524,900 1,101.800 2,001.000 1.998.975 678,800 708,750 348.500 1212,875 896500 636500 11,172,100 2,858350 45335.034 6,832,179 15.158%
2030 6,832,179 15,235,746,134 (a) 0_1125 49298,712 2347,625 920,600 28.095,900 4,995,825 4,764,925 17,309,400 1,098,875 463,375 1,445,000 1,198,750 632250 63272,525 67,499,175 45,072,062 6,532,664 15.72A%
2031 6,532,664 15235,748,134 0.2/154 26,943.647 1.922,125 858,700 3.995363 3,501,950 897.875 420,875 1,347.000 1,021,375 637250 14,602313 41546,159 5,930,787 15.564%
2032 5,930,787 15235,748,134 0.2540 25,474.691 1.718,875 808,000 2.999,163 2,998,513 798,000 414,000 1295.875 963,375 636375 12,632.175 38.106,866 4268,869 15.554%
2033 4168,869 15235,748.134 0.1925 16,042,448 1361,750 547.600 2,873,888 2.674,588 770,125 397,125 1245.500 897,125 634.750 11,402,450 27,444,898 4,182,542 15.395%
2014 4.182342 15235,746.134 0.1890 15,768,617 1361.125 546.700 2,872.600 2b74263 771,750 395,125 1249.500 896250 632375 11,399,688 27,168,304 3,866,669 15.721%
2035 3,866,669 15235,748,134 0.1715 13,195345 1363.125 545.200 2,872375 2.670338 772,125 397500 1246,625 899.000 634,125 11,400,413 24,595,757 3,603,488 15.633%
2036 3,603,488 15235,7411,134 0.1600 11,646,995 1,362,625 548,000 2,872,988 2,672388 771250 399,125 1146,875 895375 614,875 11,403,700 23,050,695 3231,623 15382%
2037 3231,623 15235,745.114 0.1475 9599,998 1364.500 550,000 2,874213 2,670,788 774,000 395,125 1250,030 895375 634.625 11,408,625 21.008,623 3,104,887 15.949%
2038 3,104,887 15235.743.134 0.1305 8,068292 1363,625 546300 2,870,938 2.674,713' 770.375 395500 1246,000 898,750 633,375 11,399575 19.467,867 2,103,058 15.845%
2039 2,103,0511 15235.740,134 0.0940 1,866,950 1,364,875 546,900 2.872.938 2.674,138. 770.375 395,125 1249,750 895,500 636.000 11,405,600 13272550 2,114,872 16.618%
2040 2,114,872 15235,746,134 0.0875 1,326,000 1363,125 546,700 2.869,988 2,673.950 773,750 398,875 1246,125 895,625 632,500 11,400,638 12.726.638 1,766359 15.344%
2041 1,766359 15235,748,134 0.0795 108,000 1363250 545,700 2,871,863 2,673,925 770,500 396,750 1250,000 898,875 632,875 11,403,738 11511,738 1502,569 15.825%
2042 1302569 15235.748,134 0.0605 108,000 2,873,225 2,673,838' 770.625 398,750 1246250 895250 636,875 9,494,813 9,494,813 616,082 15.567%
2043 616,082 15235,748,134 0.0253 108,000 773,875 399,750 1.249,750 899,625 634500 3,957,500 3,957,500 430,846 15.509%
2044 430,846 15135,741,114 00155 109.000 1.245375 896,875 635,750 2,778,000 2,778,000 102,885 16.190%
2045 102.885 15235,748,134 0.0015 108,000 635,500 635,500 635500 44,904 0.000%
Table 5568249206 526.692,732 511588,400 536,910,300 554,716,850 S51,912.100 S22,061,000 $15,524.010 S7.753.000 525,122/175 080A30375 512.693,875 0283A76,0117 S76.074125 5775218,9/0
Average Tat Rate: S0.2841)
Tat Rah Ineroae Over 43 Ceuta:I S0.0100)
(a)Includes the tenable assessed volues of the TTRZ 0152,571,543,573(2020 estimated value)beginning in fiscal year 2030,once the TIRZ has been dissolved.For City operations,the O&M rate must presumably rise to offset the loss in adminstrative fee.
(b)Includes estimated Delinquent Tax Collections,Penalties and Interest,Until Lease Payments,Interest Income,Transfers for Fund 100 and 600.
(c)Includes estimated MUD Rebate payments,Arbitrage Services,Fiscal Agent Fees and excludes debt service requirements paid by the Water and Sewer System revenues.
(d)TIRZ related projects to be sold as Certificates of Obligation.Structured with a deferred billion principal payment date on March 1,2030 and a call date of Match 1,2026.
5
Current Market Rate plus 100 Basis Points Scenario
City of Pearland,Texas
2021-2025 Capital improvement Plan(Post 2020 Bond Sales)
Structured Debt-Accelerated Bonds Sales(Current Market Rates("CMR")of Interest plus IOU Basis Points)
Plus:2021-2025 Capital Improvement Plan(S190,510,513)
Fiscal Prior Year/ Assessed Tax Rate per Noll Sales(f) I 2022 Sales 2023 Sales 2024 Saks - 2025 Vale Plus: Reimbursements Debt
•
Soar Beginning Estimated Valuation 5100 of Outstanding 519,407.600 57.017.400 52741,964 S35,007,176 333,468,489 SI6,070,000 59,756,258 54,836,626 515,875,000 SI1,705,000 58,025.000 5-Vear CIP for TIRZ. Total Ending Service
Ending Debt Service Tasabk Assessed Growth Assessed Net 2021 GO 2021 CO 2021A CO(d) 2022 GO 2022 CO 2022A CO(d) 2023 GO 2023 CO 2024 GO 2024 CO 2025 CO (2020.2025/ Related Debt Service Debt Servlae Coverage
9/1 Food Balmier Valentlso Rate(%) Value OMigatlar(e) @CMR+1.00% :'a 4.90% 904,00% 0/4.50% (04.50% (a'4.00% t25.00% 675.00% (?5,00% (Z5,00% ta,5.00% $190,510,513 Projects(e) Regdremeats Fund Balance (%)
2020 S5.426.608 19230,392,985 5.63% 0.4344 938,627258 538,627,256 55,993,499 14.650%
2021 5,993,499 10,153,432284 10.00% 0.4150 40,910,514 40.910514 5,950,402 13.797%
2022 5950,40E 10,610,336,736 4.50°. 0.4325 40,440,208 S1,087,499 5498,100 S1,101,800 S2,687,399 43,127,607 7,238,575 15256%
2023 7238575 11,087,801,889 4.50 0.4405 40.080,780 1,089,750 495,600 1,101,800 S2,000,663 S1,999,788 $678,800 7,366,400 47,447,180 6,936.985 14.437%
2024 6,936,985 11,531,313,965 4.0095° 0.441)5 39,640,578 1,086,500 497,800 1,101,800 1,995,750 1,996,613 678,800 5702,500 S349,250 8,4I19,013 48,049,591 7,581,943 15.345%
2025 7,581,943 11,934,909,954 330% 0.4320 38,879,466 E087,625 499,600 1,101,800 1,999,938 1,997,425 678,800 706,125 348,625. S1213,000 5897250 10,530,188 49.409,653 7.539,894 15.342%
2026 7,539,894 12,292,957,252 3.001% 0.41511 37,938,659 1307300 520,600 1,101,800 2,003,000 1.997,113 678,800 709,000 347,750 1211,000 895,875 S635250 11207.688 49,146,347 7,198,008 15.658%
2027 7,198,008 12,538,816,397 2.00% 03/125 37,627,916 1,106,125 520,800 1,101,800 2,000,050 1,995,675 678,800 706250 346,625 1212575 898,625 633,000 11200,625 52,858350 45,970,191 7.019.674 15374%
2028 7.019,674 12,664204.561 1.00% 03800 37,310,850 1,108,875 520,600 1,101,800 2,001,088 1,998,000 678,800 707.875 345250 1213,500 895,500 635125 11,206,413 2.858350 45,658,912 7,098,113 15.642%
2029 7,098,113 12,664204.561 03750 37,021284 1,105,750 524,900 1,101,800 2,001,000 1,998,975 678,800 708,750 348300 1212,875 896,500 636,500 11,214,350 2,858350 45,377284 6,825065 15.131%
2030 6,826,065 15235,748,131 (a) 03140 49298,712 2388,875 920,600 28,095,900 4,995,825 4,764,925 17,309,400 1,098,875 463375 , 1,445,000 1,198,750 632,250 63,313,775 67.499,175 45,113,312 6,703,764 16.116%
2031 6,703,764 15235748,134 0.2850 26.943,647 1,972,125 858,700 3,995363 7301,950 897,875 420,875 1347,000 1,021375 637250 14,652,513 41,5%359 6,060,441 15.886%
2032 6,060,441 15235,748,134 0.2540 25,474,691 1,762500 808,000 2,999,163 2,998,513 798,000 414,000 1295,875 963375 636375 12,675,800 38,150,491 4361382 15.861%
2033 4,361,382 15235248,134 0.1940 16.042,448 1,413,875 547,600 2.873,888 2.674,588 770,I25 397,125 1245500 897,125 634,750 11,454,575 27,497,023 4,442,720 16.322%
2034 4,442,720 15235,748,134 0.1875 15,768,617 I,411,500 546,700 2,872,600 2,674263 771,750 395,125 1249300 896,250 632375 11,450,063 27218,679 3,874,514 15.722%
2035 3,874,514 15235,748,134 0.1715 13,195345 1.411,750 545200 2,872375 2,670338 772,125 397500 1246,625 899,000 634.125 11,449,038 24,644382 3.563,099 15.423%
2036 3,563,099 15235,748,134 0.1600 11,646,995 1,414375 548,000 2,872,988 2,672,588 771250 399.125 1246,875 895,375 634,875 11,455,450 23,102,445 3,137,465 14.899%
2037 3,137,465 15235,748,134 0.1475 9,599,998 1,414250 550,000 2,874213 2.670,788 774,000 395,125 1250,000 695375 634,625 11,458375 21,058373 2,956271 15.148%
2038 2,956271 15235,748,134 0.1315 8,068292 1,411,375 546300 2,870,938 2.674,713 770,375 395500. 1246,000 898,750 633,375 11,447325 19,515,617 2,040,688 15322%
2039 - 2,010,688 15235,748.134 0.0935 1,866,950 1,410,625 546,900 2,872538 2.674,138 770,375 395,125 1,249,750 895500 636,000 11,451350 13318300 1,933,794 15.137%
2040 1,933,794 15235,748,134 0.0895 1326,000 1.411,750 546,700 2.869,988 2.673,950 773,750 398,875 1246,125 895,625 632,500 11.449263 12,775263 1.806374 15.622%
204I 1,806374 15235,748,134 0.0795 108.000 1,414,500 545,700 2,871,863 2,673,925 770,500 396,750' 1250,000 898,875 632,875 11.454,988 11.562.988 1,493335 15.728%
2042 1,493,335 15235,748,134 0.0605 108,000 2,873,225 2,673,838 770.625 398.750 1246250 • 895250 635875 9,494,813 9,494,813 606,386 15322%
2043 606386 15235.748.134 0.0255 108,000 773575 399.750' 1249,750 899,625 634,500 3,957,500 3,957,500 447368 16.111%
2044 447,568 15235248,134 0.0I54 108,000 1245375 896,875 635,750 2,778,000 2,778,000 107,101 16.853%
2045 107,101 15235,748,134 0.0015 108,000 635,500 635,500 635,500 49.331 0.000%
T0401 S568249206 S27.617,124 511,588,400 536,910300 S54,716,850 551,982.100 S22,061,0101 515,524,000 S7,753.000' 525,122,875 $18,430,075 S12.693,875 S284,400399 S76,074225 5776,143580 I
Avenge Tax Rate: 50.11N3
Too Rae increase Over 43 Cead:I 50.0105 I
(a)Includes the taxable assessed values of the TIRZ 0(52,571,543,573(2020 estimated value)beginning in fiscal year 2030,once the TIRZ has been dissolved.For City operations,Oe O&M rate must presumably rise to offset the loss in adminsnalive fee.
(h)Includes estimated Delinquent Tan Collections,Penalties and Interest,UoD I Lease Payments,Interest Income.Transfers for Fund 100 and 600.
(c)includes estimated MUD Rebate payments,Arbitrage Services,Fiscal Agent Fees and excludes debt service requirements paid by the Water and Sewer System revenues.
(d)TIRZ muted projects to be sold as Certificates of Obligation.Structured with a defrrred bellon principal payment date on March 1,2030 and a call date of March 1,2026.
. 6