1. Washington State University Bonds, Levies and Voter Patterns August 12, 2008 Jon Gores Senior Vice President (206) 389-4043 [email_address]
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3. Davidson’s Education Finance Team Jack Eaton Managing Director 35 Yrs Experience Jon Gores Sr. Vice President 23 Yrs Experience Dave Trageser Sr. Vice President 23 Yrs Experience Financial and Quantitative Analysis Chad Cowan Vice President 9 Yrs Experience Municipal Credit Maura Lentini Vice President 7 Yrs Experience Disclosure Shandra Tietze Associate 25 Yrs Experience Underwriting Mark Froio Vice President 24 Yrs Experience Marketing Joe Brady Sr. Vice President/ Sales Manager 25 Yrs Experience Fixed Income Research Mary Ann Hurley Vice President 30 Yrs Experience D.A. Davidson & Co. Northwest Education Finance Team BANKERS Analytics Kelsey Draper Administrative Assistant We have the most experienced school finance team in the state.
4. Davidson’s 2007/2008 Washington School District Transactions $27,800,000 West Valley School District No. 208 Unlimited Tax General Obligation Bonds, 2007 $14,750,000 Orting School District No. 344 Unlimited Tax General Obligation Bonds, 2007 $22,775,000 Ellensburg School District No. 401 Unlimited Tax General Obligation Refunding Bonds, 2007 $3,500,000 Cape Flattery School District No. 401 Unlimited Tax General Obligation Bonds, 2007 $9,720,000 Griffin School District No. 324 Unlimited Tax General Obligation Refunding Bonds, 2007 $9,700,000 Arlington School District No. 16 Unlimited Tax General Obligation Refunding Bonds, 2007 $15,000,000 Riverview School District No. 407 Unlimited Tax General Obligation Bonds, 2007 $15,000,000 Deer Park School District No. 414-200-61 Unlimited Tax General Obligation Bonds, 2007 $8,000,000 Nine Mile Falls School District No. 325-170 Unlimited Tax General Obligation Bonds, 2007
5. Davidson’s 2007/2008 Washington School District Transactions ( Continued ) $9,900,000 Kelso School District No. 458 Unlimited Tax General Obligation Refunding Bonds, 2007 $4,296,277 Prescott School District No. 402-37 Unlimited Tax General Obligation Bonds, 2007 $5,835,000 Burlington-Edison School District No. 100 Unlimited Tax General Obligation Refunding Bonds, 2007 $45,000,000 Federal Way School District No. 210 Unlimited Tax General Obligation Bonds, 2007 $67,000,000 North Thurston Public Schools Unlimited Tax General Obligation Bonds, 2007 $7,155,000 Port Townsend School District No. 50 Unlimited Tax General Obligation Refunding Bonds, 2007 $2,205,000 Liberty School District No. 362 Unlimited Tax General Obligation Refunding Bonds, 2007 $15,000,000 Riverview School District No. 407 Unlimited Tax General Obligation Bonds, 2008 $36,000,000 Sumner School District No. 320 Unlimited Tax General Obligation Bonds, 2007
6. 2007/2008 Washington School District Transactions ( Continued ) $2,115,000 Sultan School District No. 311 Unlimited Tax General Obligation Refunding Bonds, 2008 $7,645,000 Nooksack Valley School District No. 506 Unlimited Tax General Obligation Refunding Bonds, 2007 $5,650,000 Selah School District No. 119 Unlimited Tax General Obligation Refunding Bonds, 2008 $4,350,000 Nine Mile Falls School District No. 325 Unlimited Tax General Obligation Bonds, 2008 $7,440,000 Toppenish School District No. 202 Unlimited Tax General Obligation Refunding Bonds, 2008 $16,000,000 Oak Harbor School District No. 201 Unlimited Tax General Obligation Bonds, 2008 $2,795,000 Aberdeen School District No. 5 Unlimited Tax General Obligation Refunding Bonds, 2008 $5,500,000 Lake Chelan School District No. 129 Unlimited Tax General Obligation Bonds, 2008 $4,290,000 Sequim School District No. 323 Unlimited Tax General Obligation Refunding Bonds, 2008
7. 2007/2008 Washington School District Transactions ( Continued ) $7,470,000 Orting School District No. 344 Unlimited Tax General Obligation Refunding Bonds, 2008 $14,695,000 Tahoma School District No. 409 Unlimited Tax General Obligation Refunding Bonds, 2008 $13,615,000 Northshore School District No. 417 Unlimited Tax General Obligation Refunding Bonds, 2008 $15,000,000 Freeman School District No. 358 Unlimited Tax General Obligation Bonds, 2008
14. Multiple Propositions on Same Ballot Example: PROPOSITION 2 BONDS FOR NEW STADIUM AND MULTIPURPOSE FIELD The Board of Directors of ABC District No. 1 adopted Resolution No. 11-07/08, concerning a proposition to finance a new stadium and multipurpose field. This proposition would authorize the District, only if Proposition 1 is approved, to construct and equip a new High School Stadium and synthetic turf multipurpose field; issue no more than $4,000,000 of general obligation bonds maturing within 20 years; and levy annual excess property taxes to repay the bonds, all as provided in Resolution No. 11-07-08. Should this proposition be: Approved………. ____ Rejected………...____
53. Bond raters consider local economy, district finances and other factors. Example : Financial Planning The Rating Debt Factors Economy Governmental Factors Financial Performance A2 Yakima A1 Sumner Aa1 Issaquah A1 Richland A3 Selah Aa3 Puyallup Aa3 Edmonds A3 Lake Chelan Aa3 Tacoma
65. Tax Impact Analysis Issue Structure: Level Debt Service Estimated 2008 Tax Rate Increase Over 2007 Tax Rate (Bonds Only) (per $1,000 assessed value): $0.53 -- Federal Income Tax Bracket-- Net Tax Increase from Bonds After Allowing for Income Tax Deduction NOTE: Qualified homeowners may apply for a senior exemption. Please contact the County Assessor for details. 35% 33% 28% 25% Monthly Gross Increase Gross Property Tax Increase For Bonds Assessed Value of Property 103.55 106.53 114.48 119.25 13.23 159.00 300,000 86.13 88.78 95.40 99.38 11.04 132.50 250,000 68.90 71.02 76.32 79.50 8.83 106.00 200,000 51.68 53.27 57.24 59.63 6.63 79.50 150,000 $34.45 $35.51 38.16 $39.75 $4.42 $53.00 $100,000
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71. Refunding Overview ISSUER Debt Service on Outstanding Bonds New Refunding Bonds Special U.S. Government Obligation (SLGS) and T-Bills Debt Service on Refunding Bonds Old Bonds New Bonds Debt Service on Outstanding Bonds Old Bonds New Bonds TO BUY TO PAY OWES ISSUES OWES
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75. SAFECO Montana Board of Investments Santa Barbara Trust Charles Schwab Washington First First Security Investment Wells Fargo Bank Discover Brokerage PEMCO American Marine Bank Peoples Bank 1st Independent Bank WM Advisors Bank of America USAA Investment Management Co. Franklin Federal Tax Free Fund ICM Asset Management Baker Boyer National Bank Northern State Bank Thornburg Investment Management WEST Fidelity Investments PNC Bank Bear Stearns MD Sass Investors Services Inc. Chase Manhattan Bank Colonial Funds Pioneering Management Corp. AAL Capital Management Lord Abbett Delaware Management Co. Alliance Capital Management Co. Salomon Brothers Asset Management Sanford C. Bernstein DB Scudder of Boston, MA Dreyfus U. S. Trust of New York Boston Company Eaton Vance Municipals . EAST CENTRAL Nuveen Advisory Corp Strong Capital Management Allstate Insurance Co. Stein Roe & Farnham State Farm Fire & Casualty IDS Tax Exempt Voyageur Asset Management Janus Investors Fiduciary Trust Co. Continental Illinois Nat’l. Bank Allstate Insurance Co. Northern Trust Co. Montana Tax-Free Fund Wells Fargo Bank State Farm Fire & Casualty Harris Bank Heartland Advisors Inc. First Security Investment U.S. Bank Bank One United Savings & Loan Society Asset Management * Selected representative institutional clients Selling the Bonds
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![Introduction to D.A. Davidson ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],In 2007, Davidson completed 219 public finance negotiated transactions totaling $1.545 billion. Our most recent ranking was 11 th in the country among municipal underwriters by number of sales and the top 30th by dollar amount. In 2007, Davidson senior managed 16 school district transactions. In addition, we served as a Financial Advisor on 2 bond issues totaling $112 million in 2007. So far in 2008 Davidson has Senior Managed 13 Washington School District transactions. Washington Schools 2008 2008 Totals Senior Manager 2 Piper Jaffray 7 Seattle-Northwest 13 D.A. Davidson & Co.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)