San Antonio Water System

Debt Transaction Disclosure Report

City of San Antonio, Texas Water System

Revenue Refunding Bonds, Series 2007

City of San Antonio, Texas Water System

Junior Lien Revenue and Refunding Bonds,
Series 2007

City of San Antonio, Texas Water System

Junior Lien Revenue and Refunding Bonds,
Series 2007A
 DEBT TRANSACTION DISCLOSURE REPORT

April 30, 2007

Table of Contents
City of San Antonio, Texas Water System Revenue Refunding Bonds, Series 2007

Bond Transaction Summary………………………………………………………...………2

Sources and Uses of Funds………………………………………………………… ………3

Debt Service Requirements…………………………………………………………………4

Costs of Issuance……………………………………………………………………………5

Summary of Underwriters’ Discount………………………………….……………………6

Revenue by Firm…………………………………………………………………………...7

Summary of Orders and Allotments………………………………………………………..8

City of San Antonio, Texas Water System Junior Lien Revenue and Refunding Bonds,
Series 2007

Bond Transaction Summary………………………………………………………...………9

Sources and Uses of Funds………………………………………………………… ……....9

Debt Service Requirements………………………………………………………………..10

Costs of Issuance…………………………………………………………………………...11

City of San Antonio, Texas Water System Junior Lien Revenue and Refunding Bonds,
Series 2007A

Bond Transaction Summary………………………………………………………...……..12

Sources and Uses of Funds………………………………………………………… ……..12

Debt Service Requirements……………………………………………………………..…13

Costs of Issuance…………………………………………………………………………..14

Appendix A – Definition of Fees…………………………………………………………………15

1
 City of San Antonio, Texas Water System Revenue Refunding Bonds,
Series 2007

Bond Transaction Summary

Series 2007 Revenue Refunding Bonds

Par Amount $ 311,160,000

True Interest Cost 4.4936335%
Net Interest Cost 4.5153835%
Average Life 18.459 Years

Tax-Exempt Commercial Paper Refunding Component

Par Amount $ 237,555,000

Refunded Par Amount $ 237,610,000
True Interest Cost 4.5537149%
Net Interest Cost 4.5550605%
Average Life 22.588 Years

Series 1997 Bonds Refunding Component

Par Amount $ 48,670,000

Refunded Par Amount $ 74,950,000
SAWS Contribution $ 25,000,000
True Interest Cost 3.8646041%
Net Interest Cost 4.0112593%
Average Life 3.823 Years
Gross Savings $ 8,915,341
Net Present Value Benefit $ 3,069,691
Net Present Value Benefit as % of Refunded Par 4.096%

Series 2002-A Bonds Refunding Component

Par Amount $ 24,935,000

Refunded Par Amount $ 25,775,000
True Interest Cost 4.0307036%
Net Interest Cost 4.2469463%
Average Life 9.246 Years
Gross Savings $ 2,047,700
Net Present Value Benefit $ 1,518,876
Net Present Value Benefit as % of Refunded Par 5.893%

2
 Sources and Uses

Sources
Par Amount of Bonds $ 311,160,000.00
Reoffering Premium 8,305,479.65
Accrued Interest 1,498,357.01
Transfers from Prior Issue Debt Service Funds 3,488,763.47
Planned Issuer Equity Contribution 25,000,000.00
Total Sources of Funds $ 349,452,600.13

Uses
Original Issue Discount (OID) $ 2,231,034.80
Total Underwriters' Discount 1,472,467.38
Cost of Issuance 675,000.00
Insurance Premiums 1,515,852.18
Deposit to Debt Service Fund 1,498,357.01
Deposit to Refunding Escrow Funds 342,056,137.74
Rounding Amount 3,751.02
Total Uses of Funds $ 349,452,600.13

3
 Debt Service Requirements
Fiscal Year Total
Ended 12/31 Principal Coupon Interest Debt Service

2007 $ - $ 12,148,840.63 $ 12,148,840.63

2008 7,480,000.00 4.333% 14,416,558.76 21,896,558.76
2009 9,340,000.00 4.566% 14,041,258.76 23,381,258.76
2010 8,355,000.00 4.701% 13,631,633.76 21,986,633.76
2011 9,670,000.00 4.814% 13,202,508.76 22,872,508.76
2012 10,380,000.00 4.818% 12,719,708.76 23,099,708.76
2013 4,020,000.00 5.000% 12,369,158.76 16,389,158.76
2014 8,280,000.00 5.500% 12,040,958.76 20,320,958.76
2015 11,065,000.00 5.500% 11,508,971.26 22,573,971.26
2016 10,375,000.00 5.500% 10,919,371.26 21,294,371.26
2017 8,370,000.00 4.701% 10,437,308.76 18,807,308.76
2018 8,540,000.00 5.000% 10,027,058.76 18,567,058.76
2019 4,430,000.00 5.000% 9,702,808.76 14,132,808.76
2020 4,655,000.00 5.000% 9,475,683.76 14,130,683.76
2021 4,880,000.00 4.300% 9,254,388.76 14,134,388.76
2022 5,110,000.00 5.000% 9,021,718.76 14,131,718.76
2023 5,375,000.00 5.000% 8,759,593.76 14,134,593.76
2024 5,650,000.00 5.000% 8,483,968.76 14,133,968.76
2025 5,940,000.00 5.000% 8,194,218.76 14,134,218.76
2026 6,230,000.00 4.500% 7,905,543.76 14,135,543.76
2027 - 7,765,368.76 7,765,368.76
2028 - 7,765,368.76 7,765,368.76
2029 16,245,000.00 4.375% 7,410,009.38 23,655,009.38
2030 16,965,000.00 4.500% 6,672,937.50 23,637,937.50
2031 17,730,000.00 4.500% 5,892,300.00 23,622,300.00
2032 18,525,000.00 4.500% 5,076,562.50 23,601,562.50
2033 28,645,000.00 4.500% 4,015,237.50 32,660,237.50
2034 37,530,000.00 4.500% 2,526,300.00 40,056,300.00
2035 11,900,000.00 4.500% 1,414,125.00 13,314,125.00
2036 12,450,000.00 4.500% 866,250.00 13,316,250.00
2037 13,025,000.00 4.500% 293,062.50 13,318,062.50

$ 311,160,000.00 $ 267,958,783.97 $ 579,118,783.97

4
 Cost of Issuance

Financial Advisor
First Southwest Company, San Antonio, TX $ 109,434.13
Estrada Hinojosa & Company, San Antonio, TX 71,783.22

Bond Counsel Services

Fulbright & Jaworski L.L.P., San Antonio, TX 208,179.00
Law Offices of William T. Avila, San Antonio, TX 86,862.37

Legal Services
Bracewell & Giuliani LLP, San Antonio, TX 15,887.50

Rating Agencies
Fitch Ratings, New York, NY 52,666.99
Moody's Investors Services, New York, NY 55,281.45
Standard & Poor's Rating Services, New York, NY 52,649.00

Official Statement Printing and Mailing

Island Printing, Dallas, TX 6,447.36

Internet Posting of Official Statement

I-Deal, New York, New York 760.00

Escrow and Paying Agent/Registrar

USBank, Houston, TX 2,800.00

Verification Agent
Grant Thornton LLP, Minneapolis, MN 6,500.00

Attorney General of Texas 9,500.00

Credit Enhancement
FGIC, New York, New York 1,515,852.18

Total $ 2,194,603.20

5
 Summary of Underwriters' Discount
Per $1,000 Bond Total

Management Fee $ 0.25 $ 77,790.00

Average Takedown 4.00 1,246,036.25
Underwriting Expenses 0.48 148,641.13
$ 4.73 $ 1,472,467.38

Underwriting Expenses
Underwriters’ Counsel $ 0.30 $ 93,348.00
Day Loan 0.01 2,160.83
BMA Fee 0.04 10,890.60
Dalnet 0.08 23,617.00
DTC and Cusip Charges 0.00 828.00
MAC Fee 0.03 10,000.00
Miscellaneous 0.03 7,796.70
$ 0.48 $ 148,641.13

Underwriters' Counsel
McCall, Parkhurst & Horton L.L.P. San Antonio, TX
Escamilla & Poneck, Inc. San Antonio, TX

Underwriting Risk

Percent Risk
UBS Securities LLC, New York, NY 40.00%
Bear, Stearns & Co., Inc., New York, NY 20.00%
Apex Pryor Securities, Houston, TX 8.00%
Jackson Securities, LLC, Dallas, TX 8.00%
Morgan Keegan & Company, Houston, TX 8.00%
Popular Securities, Inc., San Antonio, TX 8.00%
SAMCO Capital Markets, San Antonio, TX 8.00%
100.00%

6
 Revenue By Firm

Underwriter Management Fee Takedown Total

Fee Percent Fee Percent Fee Percent

UBS Securities LLC (Sr Mgr) $ 31,116.00 40.00% $ 515,017.72 41.33% $ 546,133.72 41.25%
Bear, Stearns & Co., Inc. (Co-Sr Mgr) 15,558.00 20.00% 289,870.13 23.26% 305,428.13 23.07%
Apex Pryor Securities 6,223.20 8.00% 138,871.88 11.15% 145,095.08 10.96%
Jackson Securities, LLC 6,223.20 8.00% 65,142.13 5.23% 71,365.33 5.39%
Morgan Keegan & Company 6,223.20 8.00% 161,250.63 12.94% 167,473.83 12.65%
Popular Securities, Inc. 6,223.20 8.00% 43,185.63 3.47% 49,408.83 3.73%
SAMCO Capital Markets 6,223.20 8.00% 32,698.13 2.62% 38,921.33 2.94%
$ 77,790.00 100.00% $ 1,246,036.25 100.00% $1,323,826.25 100.00%

SMWBE Participation Management Fee Takedown Total

Fee Percent Fee Percent Fee Percent
Apex Pryor Securities, African American 6,223.20 8.00% 138,871.88 11.15% 145,095.08 10.96%
Jackson Securities, LLC, African American 6,223.20 8.00% 65,142.13 5.23% 71,365.33 5.39%
$ 12,446.40 16.00% $ 204,014.01 16.37% $ 216,460.41 16.35%

Designation Policy

A minimum of 5 firms must be designated.

No firm may receive more than 40% of any designation.
Co-Senior Manager (Bear, Stearns & Co., Inc.) must be designated a minimum of 20% on each designated order.
A minimum of 15% must be designated among the SMWBE firms (Apex Pryor and Jackson Securities).

7
 Summary of Orders and Allotments
Underwriter Total Orders Received
(000s) Member Priority Total Percent of Total

UBS Securities LLC (Sr Mgr) $ 8,905 $ 362,220 $ 371,125 65.41%

Bear, Stearns & Co., Inc. (Co-Sr Mgr) 66,500 5,600 72,100 12.71%
Apex Pryor Securities 11,000 6,000 17,000 3.00%
Jackson Securities, LLC 26,000 - 26,000 4.58%
Morgan Keegan & Company 30,975 100 31,075 5.48%
Popular Securities, Inc. 34,520 - 34,520 6.08%
SAMCO Capital Markets 14,350 1,250 15,600 2.75%
$ 192,250 $ 375,170 $ 567,420 100.00%

Underwriter Total Order Allotments

(000s) Member Priority Total Percent of Total

UBS Securities LLC (Sr Mgr) $ 8,905 $ 283,860 $ 292,765 94.09%

Bear, Stearns & Co., Inc. (Co-Sr Mgr) 1,050 5,600 6,650 2.14%
Apex Pryor Securities 1,000 6,000 7,000 2.25%
Jackson Securities, LLC - - - 0.00%
Morgan Keegan & Company - 100 100 0.03%
Popular Securities, Inc. 2,495 - 2,495 0.80%
SAMCO Capital Markets 900 1,250 2,150 0.69%
$ 14,350 $ 296,810 $ 311,160 100.00%

SMWBE Participation SMWBE Orders Received

(000s) Member Priority Total Percent of Total
Apex Pryor Securities, African American $ 11,000 $ 6,000 $ 17,000 3.00%
Jackson Securities, LLC, African American 26,000 - 26,000 4.58%
$ 37,000 $ 6,000 $ 43,000 7.58%

SMWBE Order Allotments

(000s) Member Priority Total Percent of Total
Apex Pryor Securities, African American $ 1,000 $ 6,000 $ 7,000 2.25%
Jackson Securities, LLC, African American - - - 0.00%
$ 1,000 $ 6,000 $ 7,000 2.25%

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 City of San Antonio, Texas Water System Junior Lien
Revenue and Refunding Bonds, Series 2007

Bond Transaction Summary

Par Amount $ 8,070,000

True Interest Cost 2.1230186%
Net Interest Cost 2.1420692%
Average Life 11.473 Years

Sources and Uses

Sources
Par Amount of Bonds $ 8,070,000.00
Total Sources of Funds $ 8,070,000.00

Uses
Cost of Issuance $ 41,666.26
TWDB Administrative Fee 146,583.00
Insurance Premiums 35,730.60
Deposit to Refunding Escrow Fund (TECP Refunding) 558,245.48
Deposit to Project Construction Fund 7,287,774.66
Total Uses of Funds $ 8,070,000.00

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 Debt Service Requirements

Fiscal Year Total

Ended 12/31 Principal Coupon Interest Debt Service

2007 $ - $ 131,866.39 $ 131,866.39

2008 335,000.00 1.700% 159,727.50 494,727.50
2009 340,000.00 1.700% 153,990.00 493,990.00
2010 350,000.00 1.700% 148,125.00 498,125.00
2011 355,000.00 1.700% 142,132.50 497,132.50
2012 360,000.00 1.700% 136,055.00 496,055.00
2013 365,000.00 1.750% 129,801.25 494,801.25
2014 370,000.00 1.800% 123,277.50 493,277.50
2015 380,000.00 1.850% 116,432.50 496,432.50
2016 385,000.00 1.900% 109,260.00 494,260.00
2017 395,000.00 1.950% 101,751.25 496,751.25
2018 400,000.00 2.000% 93,900.00 493,900.00
2019 410,000.00 2.050% 85,697.50 495,697.50
2020 420,000.00 2.100% 77,085.00 497,085.00
2021 430,000.00 2.150% 68,052.50 498,052.50
2022 435,000.00 2.200% 58,645.00 493,645.00
2023 445,000.00 2.250% 48,853.75 493,853.75
2024 455,000.00 2.250% 38,728.75 493,728.75
2025 470,000.00 2.300% 28,205.00 498,205.00
2026 480,000.00 2.300% 17,280.00 497,280.00
2027 490,000.00 2.400% 5,880.00 495,880.00

$ 8,070,000.00 $ 1,974,746.39 $ 10,044,746.39

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 Cost of Issuance

Financial Advisor
First Southwest Company, San Antonio, TX $ 2,724.60
Estrada Hinojosa & Company, San Antonio, TX 10,000.00

Bond Counsel Services

Fulbright & Jaworski L.L.P., San Antonio, TX 18,100.00
Escamilla & Poneck, Inc., San Antonio, TX 6,350.00

Rating Agencies
Fitch Ratings, New York, NY 1,362.01
Moody's Investors Services, New York, NY 1,433.74
Standard & Poor's Rating Services, New York, NY 1,365.46

CUSIP, New York, NY 503.44

Escrow and Paying Agent/Registrar

USBank, Houston, TX 1,300.00

Attorney General of Texas 8,070.00

Credit Enhancement
XL Capital Assurance Inc., New York, New York 35,730.60

Total $ 86,939.85

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City of San Antonio, Texas Water System Junior Lien
Revenue and Refunding Bonds, Series 2007A

Bond Transaction Summary

Par Amount $ 35,375,000

True Interest Cost 3.1285308%
Net Interest Cost 3.1490055%
Average Life 11.800 Years

Sources and Uses

Sources
Par Amount of Bonds $ 35,375,000.00
Total Sources of Funds $ 35,375,000.00

Uses
Cost of Issuance $ 85,676.23
TWDB Administrative Fee 642,550.00
Insurance Premiums 142,816.29
Deposit to Refunding Escrow Fund (TECP Refunding) 14,374,706.35
Deposit to Project Construction Fund 20,129,251.13
Total Uses of Funds $ 35,375,000.00

12
 Debt Service Requirements

Fiscal Year Total

Ended 12/31 Principal Coupon Interest Debt Service

2007 $ - $ 868,805.44 $ 868,805.44

2008 1,330,000.00 2.700% 1,053,175.00 2,383,175.00
2009 1,365,000.00 2.700% 1,016,792.50 2,381,792.50
2010 1,400,000.00 2.700% 979,465.00 2,379,465.00
2011 1,440,000.00 2.700% 941,125.00 2,381,125.00
2012 1,480,000.00 2.700% 901,705.00 2,381,705.00
2013 1,520,000.00 2.750% 860,825.00 2,380,825.00
2014 1,565,000.00 2.800% 818,015.00 2,383,015.00
2015 1,610,000.00 2.850% 773,162.50 2,383,162.50
2016 1,655,000.00 2.900% 726,222.50 2,381,222.50
2017 1,705,000.00 2.950% 677,076.25 2,382,076.25
2018 1,755,000.00 3.000% 625,602.50 2,380,602.50
2019 1,810,000.00 3.050% 571,675.00 2,381,675.00
2020 1,865,000.00 3.100% 515,165.00 2,380,165.00
2021 1,925,000.00 3.150% 455,938.75 2,380,938.75
2022 1,985,000.00 3.200% 393,860.00 2,378,860.00
2023 2,050,000.00 3.250% 328,787.50 2,378,787.50
2024 2,120,000.00 3.250% 261,025.00 2,381,025.00
2025 2,190,000.00 3.300% 190,440.00 2,380,440.00
2026 2,265,000.00 3.300% 116,932.50 2,381,932.50
2027 2,340,000.00 3.400% 39,780.00 2,379,780.00

$ 35,375,000.00 $ 13,115,575.44 $ 48,490,575.44

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 Cost of Issuance

Financial Advisor
First Southwest Company, San Antonio, TX $ 11,943.00
Estrada Hinojosa & Company, San Antonio, TX 4,665.31

Bond Counsel Services

Fulbright & Jaworski L.L.P., San Antonio, TX 37,800.63
Escamilla & Poneck, Inc., San Antonio, TX 14,793.13

Rating Agencies
Fitch Ratings, New York, NY 5,971.00
Moody's Investors Services, New York, NY 6,284.81
Standard & Poor's Rating Services, New York, NY 5,985.54

CUSIP, New York, NY 788.56

Escrow and Paying Agent/Registrar

USBank, Houston, TX 550.00

Attorney General of Texas 9,500.00

Credit Enhancement
XL Capital Assurance Inc., New York, New York 142,816.29

Total $ 241,098.27

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 Appendix A

Definition of Fees Included in Spread

Average Takedown – The compensation associated with selling the bonds. This component fluctuates with market
condition.

BMA Fee – A nominal fee paid to the Bond Market Association for the support of the organization and to provide
funding for the Governmental Accounting Standards Board (GASB), which establishes standards of financial accounting
and reporting for state and local governments.

CUSIP – CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures, which assigns an
identification number to each maturity of an issue that is printed on the face of each certificate. CUSIP numbers are
intended to facilitate the clearance and identification of municipal securities. CUSIP charges a nominal fee for assigning
an identification number.

Dalnet – Dalnet is a communications system that relays messages and pricing information between the senior managing
underwriter and the co-managing underwriters on both competitive and negotiated sales. Dalnet charges a nominal fee
for providing information on new issues.

Day Loan – An interim loan between the clearing agent and the senior managing underwriter enabling the senior
managing underwriter to provide funds at delivery, prior to receiving funds from co-managing underwriters for their
participation in the transaction. The senior managing underwriter will seek to be reimbursed by the issuer for the interest
on the day loan.

DTC – DTC is an acronym for the Depository Trust Company which is a clearing agency registered with the Securities
and Exchange Commission (SEC) to provide book-entry only registration, clearing, comparison, and settlement of
municipal securities transactions to its members, who are dealers, dealer banks and brokers. Book-entry only registration
facilitates the transfer of ownership of securities by providing electronic, rather than physical, record of ownership. DTC
charges a nominal fee for registering securities in book-entry only form.

Management Fee – The compensation associated with sizing and structuring the issue. This component may be
eliminated or reduced in instances where the financial advisor assumes the primary banking responsibilities for designing
and executing the financing.

Texas MAC – Texas MAC is an acronym for the Municipal Advisory Council of Texas, which is a trade organization of
companies that provide financial advisory and/or underwriting services for issues in Texas. As part of its services, MAC
publishes the Texas Municipal Reports, which describe the finances of issuers in Texas, and serves as the State
Information Depository (SID) for receiving continuing disclosure information from issuers in Texas. MAC is funded, in
part, by assessments on members for new issues.

Underwriters’ Counsel – An attorney retained to represent the interests of the underwriters in connection with the
purchase of new issues of municipal securities. The duties of the underwriters’ counsel may include review of the
issuer’s bond resolution or ordinance and documentation, review of the official statement to determine adequacy of
disclosure, negotiation of the agreement among underwriters, and preparation of the due diligence opinion.

Underwriting Risk – The compensation associated with an underwriter’s liability during the offering of an issue. This
component may be eliminated, if all of the bonds are sold during the order period, otherwise, it is typically not a large part
of the discount.

15