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Robert V. Henderson
<br />
<br />Managing Director,
<br />Phone: (210) 805-1118
<br />Facsimile: (210) 805-1119
<br />
<br />robert.henderson@rbccm.com
<br />
<br />
<br />CLP,T
<br />ITY OF A ORTE EXAS
<br />
<br />PPF
<br />RELIMINARY LAN OF INANCE
<br />D:M17,2014
<br />ATED ARCH
<br />I:
<br />NTRODUCTION
<br />In conjunction with a review of Capital Improvement needs of the City by the City Manager, RBC Capital
<br />to determine debt capacity within the historical I & S
<br />tax rate parameters and the existing Utility System rate structure. Additionally, as a function of a wide array of
<br />events, tax-exempt interest rates altered course about two weeks ago and began a renewed downward trend.
<br />This has provided the City with the additional opportunity to structure a refunding to manage foreseeable debt
<br />capacity with minimal impact on anticipated savings. This Preliminary Plan of Finance is designed to address
<br />both of those issues.
<br />Until fiscal year ending September 30, 2013, the City had maintained a fairly consistent I & S (debt) tax rate of
<br />10.5 cents. In order to drawdown a surplus of accumulated I &S fund balances and provide a one-time boost to
<br />General Fund operations, this tax rate was temporarily reduced and is currently 9.6 cents. This analysis assumes
<br />the City returns to the historical debt tax rate of 10.5 cents.
<br />FB:
<br />INANCIAL ACKGROUND
<br />
<br />The City of La Porte currently has ten ad valorem property tax secured debt obligations outstanding as follows:
<br />Issue: Original Amount: Currently Outstanding:
<br />Limited Tax Bonds, Series 2002 $5,400,000 $1,080,000
<br />Certificates of Obligation, Series 2004 7,000,000 1,030,000
<br />Certificates of Obligation, Series 2005 1,800,000 565,000
<br />General Obligation Bonds, Series 2005 7,675,000 2,440,000
<br />Public Property Finance COs Series 2006 2,625,000 525,000
<br />Certificates of Obligation, Series 2006 5,765,000 4,065,000
<br />General Obligation Bonds, Series 2006 1,200,000 850,000
<br />Certificates of Obligation, Series 2007 8,075,000 6,665,000
<br />Certificates of Obligation, Series 2010 6,265,000 5,260,000
<br />General Obligation Ref. Bonds, Series 2010 4,295,000 3,145,000
<br />General Obligation Ref. Bonds, Series 2012 9,435,000 9,285,000
<br />The outstanding debt issues bear interest at rates ranging from 1.1% to 5.0% depending on the original series.
<br />Certain of the issues; specifically the Limited Tax Bonds, Series 2002, Certificates of Obligation, Series 2004,
<br />Certificates of Obligation, Series 2005, the General Obligation Bonds, Series 2005, Certificates of Obligation,
<br />Series 2006, the General Obligation Bonds, Series 2006 and the Certificates of Obligation, Series 2007 bear
<br />interest at rates ranging from 3.65% to 5.00%. These debt issues, given their respective call dates (the dates at
<br />303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
<br />San Antonio, TX 78215 Member NYSE/SIPC
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