Featured Municipal Bond in the Market, Week of 07/03/2017: City of Houston Tax and Revenue Anticipation Notes – $200 Million


This week’s featured bond comes from the State of Texas. The City of Houston is issuing tax and revenue anticipation notes in the amount of $200 million the week of July 05, 2017. The notes consist of a single series of short-term anticipation notes for Fiscal Year 2018, to be paid solely from pledged revenues collected in Fiscal Year 2018. The notes are issued to finance the City’s general operating expenditures for FY 2018, and shall be paid before the end of the Fiscal Year, which ends on June 30, 2018. The notes are not subject to redemption prior to maturity. The security of anticipated pledged revenues consist of ad valorem taxes, sales and use taxes, franchise charges and fees, and other general revenues. The preliminary official statement breaks down recent anticipation notes and pledged revenues, from Fiscal Year 2014 to Fiscal Year 2018 as follows:


Houston - Pledged Revenues

Further details on the purposes, security, tax status, and other matters pertaining to these City of Houston Tax and Revenue Anticipation Notes can the found in the preliminary official statement, provided by MuniOS.

As of May 2017, the Houston-The Woodlands-Sugar Land, TX Metropolitan Statistical Area has an unemployment rate of 5.1%, which is 0.8% higher than the national rate for May, and 0.5% lower than at the same time in 2016. The chart below shows the changes in the Houston MSA, State of Texas, and U.S. unemployment rates for the past ten years. MuniNet provides this data and more, easily accessible, for all 50 states and each Metropolitan Statistical Area in the country, in our Employment Database.

Municipal Bond Featured Snapshot - City of HoustonProvided at left is a quick snapshot of financial characteristics of the City of Houston, as of 06/30/2016, along with the medians for other U.S. Cities for 2015-2016, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness)In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment database.

These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.