Rule 15c2-12 Filing Cover Sheet. Bexar County, Texas (see attached summary)

Transcription

1 Rule 15c2-12 Filing Cover Sheet Issuer Name: Issues: Bexar County, Texas 101 W. Nueva, Suite 800 San Antonio, Texas Bexar County, Texas (see attached summary) Filing Format electronic paper; If available on the Internet, give URL: CUSIP Numbers to which the information filed relates (optional): Nine-digit number(s) (attach additional sheet if necessary): Six-digit number if information filed relates to all securities of the issuer: , , and * * * Description of Material Event Notice/Other Material Information 1. Principal and interest payment delinquencies 2. Non-payment related defaults 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions or events affecting the tax-exempt status of the security 7. Modifications to rights of security holders 8. Bond calls 9. Defeasances 10. Release, substitution, or sale of property securing repayment of the securities 11. Rating changes 12. Notice of non-compliance: failure to provide annual financial information 13. Other material event or information (specify) Financial & Operating Data Disclosure Information (Financial information should not be filed with the MSRB) Annual Financial Report or CAFR Financial Information & Operating Data Other (describe) Fiscal Period Covered: Fiscal Year 2017 Monthly Quarterly Annual Other: * * * I hereby represent that I am authorized by the Issuer or its agent to distribute this information publicly: Name: Carey R. Troell Title: Bond Counsel Employer: Bracewell LLP, 300 Convent, Suite 1500, San Antonio, Texas Voice Telephone Number: (210) Address: carey.troell@bracewell.com

2 ANNUAL REPORT ON FINANCIAL INFORMATION AND OPERATING DATA (Pursuant to S.E.C. Rule 15c2-12) For FISCAL YEAR ENDED SEPTEMBER 30, 2017 Dated: March 31, 2018 Due: March 31, 2018 BEXAR COUNTY, TEXAS 101 W. Nueva, Suite 800 San Antonio, Texas Pertaining to: OFFICIAL STATEMENTS DATED September 4, 2008 $42,145,000 Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2008A $50,810,000 Taxable Venue Project Revenue Refunding Bonds (Combined Venue Tax and License Revenues), Series 2008B $5,525,000 Tax-Exempt Venue Project Revenue Bonds (Combined Venue Tax), Series 2008C $5,985,000 Tax-Exempt Venue Project Revenue Bonds (Motor Vehicle Rental Tax), Series 2008D Base CUSIP No and OFFICIAL STATEMENT DATED May 21, 2009 $14,890,000 Limited Tax Refunding Bonds, Series 2009 Base CUSIP No and

3 OFFICIAL STATEMENTS DATED August 13, 2009 $98,445,000 Combination Tax and Revenue Certificates of Obligation, Series 2009A $50,620,000 Combination Tax and Revenue Certificates of Obligation, Taxable Series 2009B (Direct Subsidy - Build America Bonds) $103,690,000 Combination Flood Control Tax and Revenue Certificates of Obligation, Series 2009A $50,620,000 Combination Flood Control Tax and Revenue Certificates of Obligation, Taxable Series 2009B (Direct Subsidy - Build America Bonds) Base CUSIP No and OFFICIAL STATEMENTS DATED November 19, 2009 $27,870,000 Tax-Exempt Venue Project Revenue Bonds (Motor Vehicle Rental Tax), Series 2009 $23,020,000 Tax-Exempt Venue Project Revenue Bonds (Combined Venue Tax), Series 2009 Base CUSIP No and OFFICIAL STATEMENT DATED June 18, 2010 $36,915,000 Limited Tax Refunding Bonds, Series 2010 Base CUSIP No and OFFICIAL STATEMENT DATED August 4, 2010 $24,020,000 Limited Tax General Obligation Bonds, Series 2010 $97,455,000 Combination Tax and Revenue Certificates of Obligation, Series 2010A $30,325,000 Combination Tax and Revenue Certificates of Obligation, Taxable Series 2010B (Direct Subsidy - Build America Bonds) Base CUSIP No and

4 OFFICIAL STATEMENTS DATED December 2, 2010 $39,695,000 Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2010 $27,365,000 Tax-Exempt Venue Project Revenue Refunding Bonds (Motor Vehicle Rental Tax), Series 2010 Base CUSIP No and OFFICIAL STATEMENTS DATED September 20, 2011 $59,330,000 Combination Tax and Revenue Certificates of Obligation, Series 2011 $17,650,000 Limited Tax Refunding Bonds, Series 2011 Base CUSIP No and OFFICIAL STATEMENTS DATED December 13, 2011 $34,095,000 Combination Flood Control Tax and Revenue Certificates of Obligation, Series 2011 $51,295,000 Combination Tax and Revenue Certificates of Obligation, Series 2011A Base CUSIP No and OFFICIAL STATEMENTS DATED December 18, 2012 $25,880,000 Tax-Exempt Venue Project Revenue Refunding Bonds (Motor Vehicle Rental Tax), Series 2013 $92,190,000 Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2013 Base CUSIP No and OFFICIAL STATEMENT DATED February 1, 2013 $83,955,000 Combination Tax and Revenue Certificates of Obligation, Series 2013 Base CUSIP No

5 and OFFICIAL STATEMENT DATED April 19, 2013 $115,040,000 Combination Tax and Revenue Certificates of Obligation, Series 2013A Base CUSIP No and OFFICIAL STATEMENT DATED July 19, 2013 $331,725,000 Combination Tax and Revenue Certificates of Obligation, Series 2013B Base CUSIP No and OFFICIAL STATEMENTS DATED November 22, 2013 $16,835,000 Unlimited Tax Refunding Bonds, Series 2013 $18,055,000 Limited Tax Refunding Bonds, Series 2013 $13,375,000 Pass-Through Revenue and Limited Tax Refunding Bonds, Series 2013A (Culebra Road Project) $16,790,000 Pass-Through Revenue and Limited Tax Refunding Bonds, Series 2013B (Blanco Road Project) Base CUSIP No and OFFICIAL STATEMENTS DATED December 12, 2014 $87,130,000 Combination Tax and Revenue Certificates of Obligation, Series 2014 $9,360,000 Unlimited Tax Refunding Bonds, Series 2014 $54,575,000 Limited Tax Refunding Bonds, Series 2014 $111,810,000 Flood Control Tax Refunding Bonds, Series 2014 Base CUSIP No and

6 OFFICIAL STATEMENTS DATED July 17, 2015 $17,405,000 Pass-Through Revenue and Limited Tax Bonds, Series 2015A (FM 471 Project) $29,385,000 Pass-Through Revenue and Limited Tax Bonds, Series 2015B (1604 East Project) Base CUSIP No and OFFICIAL STATEMENT DATED October 30, 2015 $78,935,000 Tax- Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2015 Base CUSIP No and OFFICIAL STATEMENT DATED June 24, 2016 $101,740,000 Flood Control Tax Refunding Bonds, Series 2016 $248,415,000 Limited Tax Refunding Bonds, Series 2016 Base CUSIP No and OFFICIAL STATEMENT DATED August 5, 2016 $91,675,000 Combination Tax and Revenue Certificates of Obligation, Series 2016 Base CUSIP No and OFFICIAL STATEMENT DATED November 18, 2016 $93,280,000 Combination Tax and Revenue Certificates of Obligation, Series 2016A $20,330,000 Combination Tax and Revenue Certificates of Obligation, Series 2016B Base CUSIP No This Annual Report on Financial Information and Operating Data ( Annual Report ) is filed by Bexar County, Texas (the County ), pursuant to the terms of (i) four orders dated August 19, 2008 under which the County s Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2008A, the County s Taxable Venue Project Revenue Refunding Bonds (Combined Venue Tax and License Revenues), Series 2008B, the County s Tax-Exempt Venue Project Revenue Bonds (Combined Venue

7 Tax), Series 2008C, and the County s Tax-Exempt Venue Project Revenue Bonds (Motor Vehicle Rental Tax), Series 2008D were issued; (ii) an order dated May 19, 2009 under which the County s Limited Tax Refunding Bonds, Series 2009 were issued; (iii) four orders dated August 4, 2009 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2009A, the County s Combination Flood Control Tax and Revenue Certificates of Obligation, Series 2009A, the County s Combination Tax and Revenue Certificates of Obligation, Taxable Series 2009B (Direct Subsidy-Build America Bonds), and the County s Combination Flood Control Tax and Revenue Certificates of Obligation, Taxable Series 2009B (Direct Subsidy-Build America Bonds) were issued; (iv) two orders dated November 17, 2009 under which the County s Tax-Exempt Venue Project Revenue Bonds (Motor Vehicle Rental Tax), Series 2009 and the County s Tax-Exempt Venue Project Revenue Bonds (Combined Venue Tax), Series 2009 were issued; (v) an order dated June 8, 2010 under which the County s Limited Tax Refunding Bonds, Series 2010 were issued; (vi) three orders dated July 13, 2010 under which the County s Limited Tax General Obligation Bonds, Series 2010, the County s Combination Tax and Revenue Certificates of Obligation, Series 2010A, and the County s Combination Tax and Revenue Certificates of Obligation, Taxable Series 2010B (Direct Subsidy-Build America Bonds) were issued; (vii) two orders dated October 19, 2010 under which the County s Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2010 and the County s Tax-Exempt Venue Project Revenue Refunding Bonds (Motor Vehicle Rental Tax), Series 2010 were issued; (viii) two orders dated August 23, 2011 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2011 and the County s Limited Tax Refunding Bonds, Series 2011 were issued; (ix) two orders dated December 6, 2011 under which the County s Combination Flood Control Tax and Revenue Certificates of Obligation, Series 2011 and the County s Combination Tax and Revenue Certificates of Obligation, Series 2011A were issued; (x) two orders dated November 20, 2012 under which the County s Tax Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2013 and the County s Tax-Exempt Venue Project Revenue Refunding Bonds (Motor Vehicle Rental Tax), Series 2013 were issued; and (xi) an order dated January 29, 2013 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2013 were issued; (xii) an order dated April 16, 2013 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2013A were issued; (xiii) an order dated May 21, 2013 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2013B were issued; (xiv) four orders dated November 5, 2013 under which the County s Unlimited Tax Refunding Bonds, Series 2013, the County s Limited Tax Refunding Bonds, Series 2013, the County s Pass-Through Revenue and Limited Tax Refunding Bonds, Series 2013A (Culebra Road Project), and the County s Pass-Through Revenue and Limited Tax Refunding Bonds, Series 2013B (Blanco Road Project) were issued; (xv) four orders dated December 9, 2014 under which the County s Combination Tax and Revnue Certificates of Obligation, Series 2014, the County s Unlimited Tax Refunding Bonds, Series 2014, the County s Limited Tax Refunding Bonds, Series 2014, and the County s Flood Control Tax Refunding Bonds Series 2014 were issued; (xvi) two orders dated April 21, 2015 under which the County s Pass-Through Revenue and Limited Tax Bonds, Series 2015A (FM 471 Project) and the County s Pass-Through Revenue and Limited Tax Bonds, Series 2015B (1604 East Project) were issued; (xvii) an order dated October 6, 2015 under which the County s Tax-Exempt Venue Project Revenue Refunding Bonds (Combined Venue Tax), Series 2015 were issued; (xiii) two orders dated June 7, 2016 under which the County s Flood Control Tax Refunding Bonds, Series 2016 and the County s Limited Tax Refunding Bonds, Series 2016 were issued; (xix) an order dated June 21, 2016 under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2016 were issued; and (xx) two orders dated November 15, 2016, under which the County s Combination Tax and Revenue Certificates of Obligation, Series 2016A and the County s Combination Tax and Revenue Certificates of Obligation, Series 2016B were issued. The above-mentioned County obligations are described in the related County Official Statements indicated above (together, the Official Statements ). The information in this Annual Report is provided solely to comply with the County s contractual commitment established by each respective County-adopted authorization document relative to each identified series of obligations (together, the County Obligations

8 Authorization ) and to provide the information specified therein. This Annual Report is not made by the County in connection with a purchase or sale of obligations and accordingly is not intended to contain all information material to a decision to purchase or sell obligations. Bexar County, Texas 101 W Nueva, Suite 800 San Antonio, Texas (210) Contact Person: Mrs. Susan T. Yeatts, CPA, County Auditor AUDITED FINANCIAL STATEMENTS The audited financial statements of the County for its fiscal year ending September 30, 2017 will be filed separately. MISCELLANEOUS The information set forth herein has been obtained from the County s records and other sources which are considered reliable. The information contained under the enclosed captions commencing with FINANCIAL INFORMATION and concluding with COMPARATIVE SUMMARY OF EXPENDITURES ALL GOVERNMENTAL FUND TYPES was provided by the County and the Bexar Appraisal District. Any statement in this Annual Report which includes a matter of opinion, whether or not expressly so stated, is intended as such, and not as a representation of fact. The information contained in this Annual Report is provided as of the respective dates specified herein and is subject to change without notice, and the filing of this Annual Report shall not, under any circumstances, create any implication that there has been no change in the affairs of the County or in the other matters described herein since the date as of which such information is provided. The historical information set forth in this Annual Report is not necessarily indicative of future results or performance due to various factors, including, among others, those discussed in the Official Statements. These Official Statements were filed with the Municipal Securities Rulemaking Board through its Electronic Municipal Maret Access ( EMMA ) system and can be reviewed at In each County Obligation Authorization, the County disclaims any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement made pursuant to its agreement, although holders of obligations may seek a writ of mandamus to compel the County to comply with its agreement. See CONTINUING DISCLOSURE OF INFORMATION in these Official Statements. FINANCIAL INFORMATION Section 1.01 Payment Record The County has never defaulted on the payment of the principal of or interest on any of its bonded indebtedness.

9 Section 1.02 Obligations Outstanding The table below shows the total principal amount of the County s outstanding bonds, refunding bonds, and certificates of obligation as of September 30, Governmental Activities: Outstanding at Refunding Bonds September 30, Various $ 580, Various 2,375, Various 12,205, Various 12,805, Various 14,455, Various 8,095,000 (1) Various 11,680,000 (1) Various 54,050, Various 9,360, Various 111,870, Various 101,740, Various 245,795,000 General Obligation Bonds Construction 1,130,000 Total Bonds $ 585,140,000

10 Certificates of Obligation Various $ 2,245, Flood Control 2,605, Various BAB's 50,620, Flood Control BAB's 50,620, Various BAB's 30,325, Various 5,580, Various 1,625, Various 49,730, Various 31,025, Various 83,245,000 (1) Various 114,340, Various 330,725, Various 86,630, Various 16,665,000 (1) Various 26,995,000 (1) Various 91,675,000 (1) Various 93,280, Various 20,330,000 Total Certificates of Obligation $ 1,087,760,000 Total Bonds, Certificates of Obligation $ 1,672,900,000 Business - Type Activities: Revenue Bonds 2008A - Tax Exempt $ 37,675, B - Taxable 39,100,000 Revenue Bonds Tax Exempt 4,545, Tax Exempt 4,925, Tax Exempt 25,735, Tax Exempt 21,160, Tax Exempt 25,600, Tax Exempt 37,135, Tax Exempt 91,190, Tax Exempt 24,315, Tax Exempt 76,330,000 Total Business - Type Activities $ 387,710,000 (1) Although the County has pledged its ad valorem tax revenues to the repayment of these bonds, certain revenues from the Sales Tax of the Advanced Transportation District available to the County and certain additional revenues expected to be received by the County from the Texas Department of Transportation pursuant to the Pass-through Agreement, dated (but as amended from time to time), are anticipated to make these bonds self-supporting.

11 Section 1.03 Other Debt (1) The Venue Project Bonds are payable solely from the imposition of a 1.75% hotel occupancy tax and a 5% short-term motor vehicle rental tax and certain rents to be received from the lease of the Venue Project to other entities. No County ad valorem taxes may be utilized to pay the debt service requirements on the County s Combined Venue Tax and Motor Vehicle Rental Tax bonds (collectively, the Venue Project Bonds ) or to maintain and operate the Venue Project. As of September 30, 2017, the County had $387,710,000 in combined venue project debt outstanding. Additional financial information can be found in the County s audited financial statements and in this document in Sections 1.32 through 1.36 which include tables entitled Bexar County Motor Vehicle Rental Tax Net Collections, Bexar County Hotel Occupancy Tax Net Collections, Bexar County Hotel Occupancy Tax-Top Ten Hotels, San Antonio Convention Statistics, and San Antonio Hotel Occupancies and Average Daily Rates/History. Source: (1) The County s audited financial statements and information provided by the County. Section 1.04 Outstanding General Bonded Debt The following table sets forth the County s outstanding governmental obligations as a percentage of taxable value of property and debt per capita: General Obligation Bonds Unamortized Premiums and Discounts, net Restricted for Debt Service Percentage of Actual Taxable Value of Property Fiscal Year Refunding Bonds Certificates of Obligation Total Per Capita ,890,001 50,130, ,835,000 6,191,521 (48,455,747) 354,590, % ,525,000 47,665, ,220,000 12,688,804 (58,544,093) 670,554, % ,765,000 69,105, ,970,000 23,237,728 (72,590,214) 830,487, % ,580,000 66,430, ,405,000 21,926,641 (71,270,325) 800,071, % ,410,000 58,035, ,265,000 27,369,278 (70,322,846) 919,756, % ,195,000 55,325,000 1,340,120,000 66,262,529 (66,484,927) 1,463,417, % ,255,000 35,725,000 1,275,495,000 71,923,731 (50,483,099) 1,453,915, % ,870,000 23,715,000 1,237,000, ,088,113 (31,967,772) 1,608,705, % ,380,000 2,360, ,980, ,402,014 (39,908,543) 1,696,213, % ,010,000 1,130,000 1,087,760, ,772,980 (60,506,401) 1,766,166, % 916 S ource: Comprehensive Annual Financial Reports (CAFR). Section 1.05 Additional Debt The County may issue certificates of obligation, personal property finance contractual obligations, tax notes and commercial paper notes payable from ad valorem taxes without voter approval. See Section 1.03 Other Debt above. Source: Official Statements- Appendix A December 13, 2017 Debt Issuance.

12 Section 1.06 Authorized But Unissued Limited Tax Bonds The County has not previously held a bond election to authorize debt payable for the Flood Control Tax (thereinafter defined). The County has no authorized but unissued bonds payable form its unlimited tax for County road projects. The County has the following authorized but unissued bonds payable from the $0.80 Tax Limitation: Purpose Date Authorized Original Amount Authorized Amount Previously Issued Amount Being Issued Unissued Balance Detention Facilities 11/2/93 $ 79,000,000 $ 66,999,113 $0 $ 12,000,887 (1) Detention Facilities 11/4/03 47,990,000 8,112, ,877,500 (1) Parks & Comm. Facilities 11/4/03 5,925, , ,950,000 (1) Public Safety 11/4/03 4,750, , ,437,500 (1) (1) The Commissioners Court currently does not contemplate the issuance of these bonds. Section 1.07 Estimated Overlapping Debt (as of September 30, 2017) The following table indicates the indebtedness, defined as outstanding indebtedness payable from ad valorem taxes, of governmental entities overlapping the County and the estimated percentages and amounts of such indebtedness attributable to property within the County. This information is based upon data secured from the individual jurisdictions and/or the Texas Municipal Reports. Such figures do not indicate the tax burden levied by the applicable taxing jurisdictions for operation and maintenance or for other purposes. The County has no control over the issuance of additional debt, or the timing thereof, by such jurisdictions.

13 Governmental Unit Debt Outstanding Applicable to Bexar County Estimated Share of Overlapping Debt Cities: Alamo Heights $ 8,375, % $ 8,375,000 Converse 25,975, % 25,975,000 Fair Oaks Ranch 6,185, % 3,821,712 Balcones Heights 258, % 258,000 Elmendorf 1,325, % 1,321,158 Helotes 10,250, % 10,250,000 Hill Country Village 433, % 433,000 Kirby 680, % 680,000 Leon Valley 9,610, % 9,610,000 Live Oak 18,345, % 18,345,000 Lytle 1,620, % 10,044 Olmos Park 2,200, % 2,200,000 St. Hedwig 340, % 340,000 San Antonio 1,710,550, % 1,710,550,000 Schertz 76,660, % 6,608,092 Selma 18,755, % 11,224,868 Shavano Park 3,895, % 3,895,000 Somerset % 0 Terrell Hills 8,760, % 8,760,000 Universal City 23,720, % 23,720,000 Von Ormy 25, % 25,000 School Districts: Alamo Heights ISD 101,800, % 101,800,000 East Central ISD 136,148, % 136,148,479 Edgewood ISD 77,015, % 77,015,000 Floresville ISD 66,034, % 72,638 Harlandale ISD 215,261, % 215,261,404 Judson ISD 631,554, % 631,554,205 Medina Valley ISD 118,365, % 43,546,776 Northeast ISD 1,336,880, % 1,336,880,000 San Antonio ISD 750,999, % 750,999,988 South San Antonio ISD 161,226, % 161,226,899 Southside ISD 97,970, % 97,970,000 Southwest ISD 237,558, % 237,558,272 Boerne ISD 334,328, % 100,599,399 Comal ISD 793,620, % 132,534,558 Northside ISD 2,206,285, % 2,200,548,659 Schertz-Cibolo-Universal City ISD 429,631, % 49,966,096 Somerset ISD 36,524, % 26,962,748 Special Districts: Alamo Community College District 522,185, % 522,185,000 Bexar Co Hosp Dist 643,960, % 643,960,000 San Antonio MUD #1 890, % 890,000 Cibolo Canyons Special Improvement District 35,005, % 35,005,000 Total Overlapping 10,861,205,567 9,349,086,995 Bexar County 1,672,900, % 1,672,900,000 Total Direct and Overlapping Debt $ 12,534,105,567 $ 11,021,986,995 Source: Municipal Advisory Council of Texas, as of September 30, 2017 Overlapping percentages are derived from the 2017 market values provided by the appraisal districts.

14 Section 1.08 Debt Service Requirements - Limited Tax Indebtedness The following table sets forth the annual debt service requirements on the County s outstanding limited and flood tax indebtedness as of September 30, GO VERNMENTAL AC TIVITIES Fiscal Year Ending 30-Sep Principal Interest Total 2018 $ 27,745,000 $ 76,658,166 $ 104,403, ,120,000 75,435, ,555, ,455,000 73,893, ,348, ,575,000 72,111, ,686, ,280,000 70,213, ,493, ,980,000 68,469, ,449, ,075,000 66,579, ,654, ,715,000 64,419, ,134, ,010,000 62,077, ,087, ,505,000 59,616, ,121, ,555,000 56,847, ,402, ,185,000 54,285, ,470, ,540,000 51,565, ,105, ,290,000 48,819, ,109, ,500,000 45,612, ,112, ,680,000 42,442, ,122, ,925,000 39,243, ,168, ,105,000 36,016, ,121, ,700,000 32,562, ,262, ,185,000 28,202, ,387, ,770,000 23,629, ,399, ,865,000 19,160, ,025, ,375,000 14,719,920 83,094, ,010,000 11,664,850 75,674, ,415,000 8,636,250 85,051, ,855,000 4,998,500 83,853, ,030,000 1,246,050 16,276, ,640, ,450 16,275,450 $ 1,649,085,000 $ 1,209,763,987 $ 2,858,848,987

15 Limited Tax Debt Estimated Proceeds from $ Limited Tax Using 2017 Taxable Assessed Valuation of $150,933,852,946 at 95% collected. $ 75,871,890 Estimated Other Sources.. 9,800,000 Total Estimated Available Funds for Limited Tax Debt Service $ 85,671, /2018 Limited Tax Debt Service Requirement.. $ 85,671,890 Flood Control Tax Obligations Estimated Proceeds from $ Flood Control Tax Using 2017 Taxable Assessed Valuation of $150,933,852,946 at 95% collected. $ 15,623,359 Estimated Other Sources.. 1,100,000 Total Estimated Available Funds for Flood Control Tax Debt Service $ 16,723, /2018 Flood Control Tax Debt Service Requirement $ 16,723,359 BUSINESS-TYPE ACTIVITIES Fiscal Year Ending 30-Sep Principal Interest Total 2018 $ 6,305,000 $ 19,214,029 $ 25,519, ,585,000 18,927,768 25,512, ,875,000 18,620,911 25,495, ,210,000 18,293,465 25,503, ,535,000 17,952,479 25,487, ,905,000 17,578,725 25,483, ,290,000 17,183,046 25,473, ,705,000 16,766,824 25,471, ,180,000 16,301,583 25,481, ,630,000 15,823,390 25,453, ,230,000 15,318,022 25,548, ,650,000 14,795,142 25,445, ,180,000 14,252,950 25,432, ,785,000 13,643,996 25,428, ,410,000 12,994,378 25,404, ,580,000 12,308,688 23,888, ,560,000 11,770,038 24,330, ,200,000 11,144,488 24,344, ,845,000 10,487,000 24,332, ,515,000 9,825,650 24,340, ,465,000 9,124,150 23,589, ,160,000 8,426,013 23,586, ,385,000 7,684,288 20,069, ,990,000 7,081,675 20,071, ,615,000 6,449,163 20,064, ,285,000 5,778,675 20,063, ,995,000 5,074,850 20,069, ,730,000 4,335,675 20,065, ,515,000 3,559,863 20,074, ,325,000 2,744,938 20,069, ,700,000 1,889,600 17,589, ,465,000 1,121,825 17,586, ,875, ,200 4,191, ,030, ,200 4,191,200 $ 387,710,000 $ 366,950,682 $ 754,660,682

16 Section 1.09 Debt Service Requirements - Unlimited Tax Bonds The following table sets forth the annual debt service requirements on the County s outstanding unlimited tax bonds as of September 30, GO VERNMENTAL AC TIVITIES Fiscal Year Ending 30-Sep Principal Interest Total 2018 $ 2,155,000 $ 1,047,638 $ 3,202, ,190,000 1,011,575 3,201, ,275, ,850 3,198, ,390, ,100 3,200, ,310, ,600 3,000, ,430, ,100 3,005, ,090, ,600 2,543, ,185, ,800 2,545, ,285, ,700 2,548, ,380, ,100 2,542, ,125,000 56,250 1,181,250 $ 23,815,000 $ 6,355,313 $ 30,170,313 Unlimited Tax Debt Estimated Proceeds from $ Unlimited Tax Using 2017 Taxable Assessed Valuation of $150,933,852,946 at 95% collected. $ 3,177,638 Estimated Other Sources.. 25,000 Total Estimated Available Funds for Unlimited Tax Debt Service $ 3,202, /20178Unlimited Tax Debt Service Requirement $ 3,202,638 AD VALOREM TAX RATES The following table shows the County s ad valorem tax rates per $100 of assessed value for each of the tax years 2013 through 2017: Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Fiscal Year 2015 Fiscal Year 2014 Purpose Tax Year 2017 Tax Year 2016 Tax Year 2015 Tax Year 2014 Tax Year 2013 General Fund $ $ $ $ $ Limited Tax Debt Services Equipment Obligations Total Limited Tax Rate $ $ $ $ $ Unlimited Tax Rate (1) Sub-Total $ $ $ $ $ Farm to Market Special Tax Flood Control Special Tax (2) Total Tax Rate $ $ $ $ $ (1) The County has historically utilized other lawfully available funds, including the Farm-to-Market and Lateral Road Tax discussed above to pay the debt service requirements on the County s unlimited tax road bonds. (2) The County has previously entered into a contract, as amended, with the San Antonio River Authority ( SARA ) pursuant to Section , as amended, Texas Local Government Code, for the accomplishment of plans and programs for flood control and soil conservation, pursuant to which the County agreed to annually assess and levy a portion of the Flood Control Tax at the rates and amounts set forth in the contract sufficient to meet the obligations of the County under the contract with SARA. In addition, a portion of the Flood Control Tax is utilized to pay the debt service requirements on the on the Flood Control Certificates.

17 PROPERTY TAXES Section 1.10 Constitutional Tax Limitations The Texas Constitution authorizes the County to levy a tax for general fund, jury fund, road and bridge fund and permanent improvement fund purposes limited in the aggregate to $0.80 per $100 of assessed valuation on taxable property within the County (the $0.80 Tax Limitation ). Administratively, the Attorney General of Texas will not approve limited tax obligations in an amount which produces debt service requirements exceeding that which can be paid from $0.40, at a 90% collection rate, of the foregoing $0.80 maximum tax rate. Taxes subject to this limitation are the source from which the Limited Tax Bonds and the currently outstanding limited tax bonds and certificates of obligation are payable. Also, the Constitution authorizes the County to levy a separate tax, without legal limit as to rate, to pay debt service on County road bonds. Taxes subject to this unlimited tax are the source from which the Unlimited Tax Road Bonds and the County s currently outstanding unlimited tax road bonds are payable. The County is also authorized, to levy a portion of the Farm to Market, and/or Flood Control Tax of $0.30 per $100 on the assessed values, but in recent years the County has only levied Flood Control Tax. (County assessed values less the State of Texas Homestead Exemption of $3,000 of assessed value). Although the receipts of these taxes are not available to pay debt service on the Bonds, these levies provide additional funds for road purposes that might otherwise be paid from taxes subject to the $0.80 Tax Limitation. Section 1.11 Assessed Valuation and Tax Levy Since 1981, the Bexar Appraisal District, described below, has assessed taxable property at 100% of its appraised value. See Property Tax Code and County-wide Appraisal District herein for more information. The following table shows the assessed valuation, tax rate and tax levy for each of the fiscal years 2008 through 2017: Fiscal Year Assessed Valuation Tax Rate (1) Tax Levy Estimated Population (2) 2008 $ 86,921,985, $ 253,110,020 1,641, ,940,246, ,110,478 1,645, ,311,787, ,632,760 1,714, ,944,253, ,269,878 1,756, ,992,321, ,055,152 1,785, ,761,763, ,449,751 1,817, ,217,547, ,646,918 1,855, ,867,812, ,332,006 1,897, ,275,282, ,074,411 1,928, ,279,867, ,044,482 1,928,680 (1) Includes only the General Fund, Limited and Unlimited Tax Road Debt Service Fund per $100 assessed valuation. (2) Source U.S. Census Bureau ( Section 1.12 Property Valuations by Category The following tables show the estimated actual value of taxable property in the County by categories and certain exemptions for each of the tax years 2013 through 2017:

18 Real Property (a) $ 136,643,622,597 $ 125,886,887,278 $ 113,984,996,296 $ 99,788,335,254 $ 93,321,063,215 M obile Homes (a) 326,271, ,950, ,335, ,214, ,026,242 Personal Property 12,575,273,650 12,402,596,439 12,334,969,651 11,211,626,679 10,039,551,732 Railroads 191,949, ,654, ,408, ,986, ,119,492 Public Utilities 515,972, ,778, ,572, ,650, ,787,290 Total Assessed Value $ 150,253,090,360 $ 139,279,867,321 $ 127,275,282,650 $ 111,867,812,546 $ 104,217,547,971 (a) Net of exemptions. Excluded are the amounts of property exempt from taxes. The County grants a residential homestead exemption not to exceed $50,000 to persons 65 and over and also grants, upon request, residential homestead exemptions to disabled persons in an amount not to exceed $7,000 of taxable value. Upon request, the County also grants to disabled veterans, or certain surviving dependents of disabled veterans, an additional exemption in an amount not to exceed $12,000 of taxable value on any property in Texas; it is not limited to the homestead property And Over Exemptions on Homestead $ 5,707,499,545 $ 5,482,188,856 $ 5,227,624,598 $ 5,048,810,324 $ 4,867,987,647 Veterans Exemption 335,750, ,072, ,958, ,288, ,844,139 Freeport Loss 479,336, ,031, ,127, ,606, ,032,140 Productivity Loss 2,804,841,253 2,649,611,323 2,544,806,603 2,251,367,656 2,265,839,195 Abatement Loss 887,732,384 1,541,293,065 1,453,120,395 1,292,150,907 1,297,693,658 Other 29,777,702 52,254,326 29,658,850 22,251,942 32,499,665 Value Lost to 10% Cap Homestead 1,785,841,094 1,760,697,684 1,703,612, ,328, ,172,232 $ 12,030,779,543 $ 12,236,149,334 $ 11,744,909,425 $ 9,861,803,919 $ 9,433,068,676 Section 1.13 Property Tax Code and County-Wide Appraisal District The appraisal district created in Bexar County (the Bexar Appraisal District or the Appraisal District ) is responsible for the appraisal of all taxable property and the equalization of appraised values of property of all taxing units in the Appraisal District, including the County. The Appraisal District is governed by a Board of Directors elected by the governing bodies of certain taxing units in the Appraisal District. The Board of Directors has appointed a Chief Appraiser to act as Chief Administrator of the Appraisal District. Appraisal districts have a minimum of five directors and may have up to thirteen directors. The Bexar Appraisal District presently has six directors. The Property Tax Code: (1) requires that all taxing units assess taxable property at 100% of its appraised value; (2) allows the valuation of certain eligible farm, ranch, and timberlands on a productive capacity basis; (3) requires that the appraised values of real property within an appraisal district be reviewed at least every three years; (4) provides for notices of any increases in appraised values to property owners before meetings of an appraisal review board; (5) grants rights of administrative and judicial appeal for taxpayers challenging property valuations established by an appraisal district or a county; (6) requires taxing jurisdictions to hold two public hearings if the tax rate it intends to adopt exceeds the lower of the Effective Tax Rate, as defined by the Property Tax Code, or the Rollback Tax Rate, as defined by the Property Tax Code, and (7) permits taxpayers by referendum in the event the tax rate exceeds the Rollback Tax Rate to reduce the tax rate to the Rollback Tax Rate. The Texas Constitution permits local governments the option of granting all individuals a homestead exemption of up to 20% of market value, with a minimum exemption of $5,000. The Commissioners Court has never granted such exemption and it cannot be predicted whether the Commissioners Court will exercise any of its options thereunder in future years. Section 1.14 Reinvestment Zones/Tax Abatement Agreements The Texas Constitution permits the creation of Reinvestment Zones (the Zone(s) ) within cities and counties to encourage the revitalization and redevelopment of underdeveloped areas thereof and to

19 issue tax increment bonds for that purpose. Assessed values in a Zone at the time of its creation constitute the base value as to all governmental entities exercising taxing authority within a Zone. Tax receipts from increased values from all taxing jurisdictions over the base value are placed in a trust fund to retire the bonds issued or otherwise pay for public improvements to revitalize a Zone. The County has not issued any tax increment bonds. Since 1985 the County has entered into a number of reinvestment zone tax abatement agreements with the owners of the property contained within the Zones. These tax abatement agreements provide for the owners of the property to make stipulated annual payments to the County for up to ten years in lieu of paying ad valorem taxes on the property. The County and the City of San Antonio have also entered into a variety of tax abatement and non-annexation agreements with various businesses that will impact the collection of ad valorem taxes from these businesses. The following entities are receiving tax abatements: 1130 Broadway Residential, LP; th St.; 1800 Broadway; 400 E Houston Street LP; AM River Walk, LLC; Bakery Offices; Bates Container, Inc. and AHS Family Real Estate, LTD. (PhaseI); Bates Container, LLC via AHS Family Real Estate, LTD. (unincorporated area); Bates Container, LLC via AHS Family Real Estate, LTD. (unincorporated area); Becton, Dickinson and Company; Big Tex(Assigned to Big Tex Riverwalk, LLC); Brack Hill Apartments; Brewery South; BRT River Walk, LLC; BSA Can Plant Apartments (Rio Perla); BSA Pearl Parkway Apartments; BT-OH, LLC & United Parcel Servic, Inc; CRP-GREP Elan Riverwalk Owner, L.P.; CST Brands, Inc.; DG Distribution of Texas; Enduraplas; FMC Technologies Inc./ SMBC Finance & Leasing; Glazer s Wholesale Drug Company; GM Financial; HOLT Texas, Ltd; Hulu, LLC; Indo-Mim, Inc.; Mosaic on Broadway, LLC; Nationwide Mutual Insurance Company PHASE II; PETCO Animal Supplies, Inc.; Rackspace US, Inc.; River North Apartments; Schlumberger Technology Corporation (unincorporated area); Toyota Motor Manufacturing Texas Tacoma; Weatherford International, Inc.; XPO Logistics, Inc. and Setzer Properties LSX, LLC. The following entities are in the recapture period in which the taxpayer receives no abatement yet is obligated to stay in business, pay taxes, and meet certain employment levels: Avanzar Interior Products, LLC; Curtis-Maruyasu America, Inc; DPT Laboratories, LTD, Brooks Development Authority; Futaba Industrial Texas Corp.; Green Metals, Inc. (Ark Recycling Texas, LLC, GMI Recycling Texas, LLC, Toyota Tsusho America, Inc.); HERO Assemblers, LP, Toyota Tsusho America, Inc.; HERO Logistics, LP, Toyota Tsusho America, Inc.; Higuchi International Corporation; Kautex, Inc., Toyota Tsusho America, Inc.; Kohl s Department Stores Phase I; Kohl s Department Stores Phase II; Lowe s Home Centers, LLC; Metalsa Light Truck, Inc.; MetoKote Corporation, Toyota Tsusho America, Inc.; Microsoft Corporation; Millennium Steel of Texas, LP, Toyota Tsusho America, Inc.; Reyes Automotice Group II, LLC; Reyes-Amtex Automotive, LLC; Takumi Stamping Texas, Inc.; Tenneco Automotive Services Texas, Inc., Toyota Tsusho America, Inc.; Toyoda Gosei Texas, LLC; Toyota Motor Manufacturing Texas-Tundra; Toyotetsu Texas, Inc.; Vistana, LTD.; Vutex, Inc.; Zachry Construction Corporation. Section 1.15 Exemptions From Taxes The Texas Constitution and the Property Tax Code grant various exemptions from taxation, if properly claimed, including exemptions for public property, residence homestead, tangible personal property not producing income, farm products and implements of farming or ranching, cemeteries, property owned and used exclusively by certain charitable organizations, and, at the option of the taxing jurisdiction, Freeport goods and goods-in-transit. The County has elected to tax Freeport goods and goods-in-transit.

20 In addition, Texas law authorizes counties, cities, or junior college districts to take official action to establish a permanent limitation on the total amount of ad valorem taxes that may be imposed by such governmental entity on the residence homestead of a disabled individual or an individual 65 years of age or older under the Texas Constitution, Article VIII, Section 1-b(h). Under the legislation, the surviving spouse of an individual who qualified for the limitation on ad valorem taxes, would be entitled to the limitation if (i) the deceased spouse died in a year in which the deceased spouse qualified for the exemption, (ii) the surviving spouse is 55 years of age or older when the individual dies, and (iii) the residence homestead of the qualifying individual is, and remains, the residence homestead of the surviving spouse. If an individual who qualified for the limitation makes improvements to the residence homestead, the governmental entity granting the limitation may increase the amount of taxes on the homestead in the first year the value of the homestead is increased on the appraisal roll because of the enhanced value of the improvements. The legislation required the adoption of a constitutional amendment by the voters of the State of Texas authorizing the governing body of a county, city or junior college district to place such a limitation on ad valorem tax increases on the residence homestead of a disabled individual or individual 65 years of age or older which voters adopted on September 13, By order approved by the Commissioners Court on May 11, 2005, the Commissioners Court adopted the ad valorem tax limitation on the residence homestead of individuals who are under a disability for purposes of payment of disability insurance benefits under Federal Old-Age, Survivors, and Disability Insurance, or its successor, and individuals 65 years of age or older as permitted under the Texas Constitution, Article VIII, 1-b(h) and Property Tax Code, Section Adoption of the tax limitation by Commissioners Court set 2005 as the base year for those individuals who qualify for the stated ad valorem tax limitation and the qualified individuals realized tax freeze benefits beginning January 1, 2006 for tax year Once established, the governing body of the taxing unit may not repeal or rescind the tax limitation. The County studied the effects of implementing such an ad valorem tax freeze for resident homeowners that qualify as disabled individuals and/or individuals 65 years of age or older and was unable to determine the exact extent to which such a tax freeze would negatively impact the County s future tax revenues. A number of other studies have been undertaken to measure the extent of the impact of a tax freeze and these studies have concluded that such a tax freeze would cause a decrease in the rate of growth of future ad valorem tax revenues to the County. Section 1.16 County and Taxpayer Remedies Under certain circumstances, taxpayers and taxing units, including the County, may appeal orders of the Appraisal Review Board by filing a notice of appeal with that Board and a petition for review in district court. In such event, the property value in question may be determined by the courts or by a jury, if requested by any party. Additionally, taxing units may bring suit against the Appraisal District to compel compliance with the Property Tax Code. The Property Tax Code establishes procedures for providing notice and the opportunity for a hearing for taxpayers in the event of certain proposed tax increases and provides for taxpayer referenda which could result in the repeal of certain tax increases. The Property Tax Code also establishes a procedure for notice to property owners of reappraisals reflecting increased property value, appraisals which are higher than renditions, and appraisals of property not previously on an appraisal roll. Section 1.17 Levy and Collection of Taxes The County is responsible for the collection of its taxes, unless it elects to assign such functions to another governmental entity. In September of each year, the rate of taxation is set by the Commissioners

21 Court based upon the valuation of property within the County as of January 1. Ad valorem taxes are due on receipt of a tax bill and payable from October 1 of the year in which levied until January 31 of the following year without interest or penalty. Split payments are allowed with the first half due by November 30, and the second half of the taxes due by June 30. There is a 4-payment option that applies only to property occupies as a residence homestead to a persons who are disabled or 65 years of age or considered totally disabled by SSI. The payment are due in four equal installments without incurring penalty and interest if paid as follows: 1) 1 st payment due on or before January 31; 2) 2 nd payment due on or before March 31; 3) 3 rd payment due on or before May 31; and 4) 4 th payment due on or before July 31. There is a 10-month payment plan, which Bexar County is the only County in the State of Texas with this plan. The 10-Month Payment Plan applies to property the person occupies as a residential homestead, with on of the following exemptions: Disabled person exemption, Age 65 or over exemption, Disabled Veteran exption, or Surviving spouse, age 55 or over, of any of the above groups. The payments are due in ten equal installments without incurring penalty and interest if paid as follows: 1) 1 st payment due on or before October 31st; 2) 2 nd payment due on or before November 30th; 3) 3 rd payment due on or before December 31st; 4) 4 th payment due on or before January 31st; 5) 5 th payment due on or before February 28th; 6) 6 th payment due on or before March 31st; 7) 7 th payment due on or before April 30th; 8) 8 th payment due on or before May 31st; 9) 9 th payment due on or before June 30th; and 10) 10 th payment due on or before July 31 st Unless the split payment or 4-payment options, or the 10-month payment plan are exercised by the taxpayer, taxes become delinquent after January 31 of the following year. On February 1, the unpaid taxes have a penalty and interest charge of 7%. Taxes delinquent from March 1 through June 30 have an additional penalty and interest charge of 2% per month, for a total penalty and interest charge of 15%. Taxes delinquent on July 1 have a total penalty and interest charge of 18%. Unpaid taxes after July 31 accrue an additional penalty and interest charge of 1% per month until paid. Any payment on the quarter payment plan that is not paid before the delinquency date for the installment accrues full penalty of 6% immediately, and begins to accrue interest at the rate of 1% per month until paid. The Property Tax Code makes provision for discounts for early payment and the postponement of the delinquency date under certain circumstances. State law allows employment of outside legal counsel to collect delinquent taxes. When this is done, the County may, upon giving proper notice, impose an additional penalty of up to 20% to the taxes, penalty, and interest delinquent as of July 1. The County has elected this option and presently uses outside legal counsel to collect delinquent taxes. Section 1.18 Tax Liens Taxes levied by the County are a personal obligation of the owner of the property. On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property. The lien exists in favor of each taxing unit, including the County, having power to tax the property. The tax lien on real property has priority over the claim of most creditors and other holders of liens on the property encumbered by the tax lien, whether or not the debt or

22 lien existed before the attachment of the tax lien. Personal property under certain circumstances is subject to seizure and sale for the payment of delinquent taxes, penalty, and interest. At any time after taxes on property become delinquent, the County may file suit to foreclose the lien securing payment of the tax, to enforce personal liability for the tax, or both. In filing a suit to foreclose a tax lien on real property, the County may join other taxing units that have claims for delinquent taxes against all or part of the same property. The ability of the County to collect delinquent taxes by foreclosure may be adversely affected by the amount of taxes owed to other taxing units, adverse market conditions, taxpayer redemption rights, or bankruptcy proceedings which restrain the collection of a taxpayer s debt. Also, provisions of the Property Tax Code require the abatement of any foreclosure or collection suit for delinquent taxes against any individual who is 65 years of age or older, owns and occupies as a residential homestead the property on which the taxes are delinquent, and requests the abatement in writing at the appropriate time. Section 1.19 Property Tax Levies, Collections and Delinquencies The table below sets forth a comparison of the ad valorem taxes levied and collected by the County for the fiscal years ended 2008 through 2017: