1. Series 2013 Utility System Improvement Bonds May 14 th, 2013

2. HISTORY May 2011 Discussed potential refunding of Series 2003 Bonds for Interest savings with Financial Advisor (Mark Galvin, First SouthWest) July 2011 Identified need to finance a portion of the Utility 5 -year Capital Improvement Plan (CIP) October 2011 Plan created to refinance 2003 bonds and obtain new money in a single transaction to save on financing costs April 2012 Council approved Utility Rate Study (Resolution 2012-34) October 2012 Preliminary Utility Rate Study and Bond Feasibility Report presented to Council indicating rate increase needed

3. HISTORY January 15, 2013 First public meeting on results of Utility Rate Study February 19, 2013 Council approved utility rate increase as recommended by Rate Study and Bond Feasibility Report (Resolution 2013-10, effective April 1, 2013) March 22, 2013 A+ Credit rating received from Fitch for existing bonds May 13, 2013 Meeting with Standard & Poor's (S&P) to request a rating in advance of bond issue May 20, 2013 Received A+ bond rating from S&P & Fitch for the new bond issue

4. SUPPLEMENTAL BOND RESOLUTION Authorizes refinancing of 2003 Utility Bonds Authorizes new money for Zero Liquid Discharge (ZLD) & other projects ($15 million) Approves offering documents  Preliminary Official Statement (POS) Council will be deeming this final under securities rules & regulations Authorizes competitive sale of bonds Provides flexibility in buying municipal bond insurance, if beneficial

5. SUPPLEMENTAL BOND RESOLUTION Authorizes modernizing amendments to original Master Bond Resolution  Incorporates changes to allow issuance of direct subsidy bonds (a.k.a. Build America Bonds)  Eliminates certain rating requirements regarding use of sureties in the debt service reserve fund  Amends consent rights of future bondholders  Other minor changes as needed

6. NEXT STEPS May 21, 2013Council approval of supplemental resolution May 24, 2013Print POS, advertise summary NOS (Notice of Sale) June 11, 2013Competitive sale & award of bonds July 9, 2013Closing on sale of bonds

7. QUESTIONS?