1. Tools and Information 0 Integrity in Debt Planning Public Trust, How to Earn it, How to Keep it Mark Fulmer Deputy Superintendent – Retired November 9, 2015

2. Good Process Builds Trust 1 Facilities Inspection Tool (FIT) data Comprehensive Assessment of Current Conditions Preliminary Cost Assessments Board Standards Community Standards Educational Program Requirements Instructional Needs Assessment of Current Facilities Demographic Study Identification of Unmet Facility Needs School Facility Needs Analysis Demographic Study Site Assessment Educational Specifications Facilities PlanFunding Plan RFQ for Financial Advisor (FA) Selection of FA Collaboration with Community and Taxpayer groups Development of Funding Plan Community Information On-going monitoring Annual Disclosure Facilities Maintenance

3. On-Going Responsibility  Keep your community informed  Monitor how the money is being spent – complete and open records  Implement a Board policy to ensure annual reports are filed with the MSRB  Keep your promises to your community – good schools in good repair 2 Community Information Monitoring Annual Disclosure Facilities Maintenance On-Going Responsibility

4. Enforcement LeeAnnGaunt Chief of the SEC’s Enforcement Division’s Municipal Securities and Public Pensions Unit California Public Finance Conference October 22, 2015 3 “ Enforcement is coming” Integrity in Debt Planning

5. Tool Kit 4 The Tool Kit is available at http://kern.org/debthttp://kern.org/debt

6. 5 GFOA Best Practices and Advisories Recommended practices in the public finance to give state and local governments more guidance on sound financial management practices. Partial listing of GFOA Best Practices Costs of Issuance Incurred in a Publicly Offered Debt Transaction Debt Management Policy Selecting and Managing the Method of Sale of State and Local Government Bonds Selecting Bond Counsel Selecting Financial Advisors Understanding Your Continuing Disclosure Responsibilities Web Site Presentation of Official Financial Documents Post Issuance Compliance Checklist * All Available at the KCSOS Debt Tool Box web site

7. MCDC? NABL to SEC: Issuers Need to Be Educated in Wake of MCDC Initiative by Jack Casey SEP 21, 2015 WASHINGTON – The National Association of Bond Lawyers is calling for increased education of issuers on continuing disclosure in the wake of lessons learned from the Municipalities Continuing Disclosure Cooperation initiative. 6 Integrity in Debt Planning

8. Disclosure Resources: Crafting Disclosure Policies National Association of Bond Lawyers August 20 2015 http://www.treasurer.ca.gov/cdiac/webinars/2015/20151014/agenda.pdf Initial Disclosure California Debt and Investment Advisory Commission March 17 2015 http://www.treasurer.ca.gov/cdiac/seminars/2014/20140205/day1/2a.pdf 7 What to Do?  Sample RFQ for Bond Counsel is in the Tool Kit  Work with your Bond Counsel to write your policy  Follow it  Document fully how you are following it Current Information SEC Does Not Require a Disclosure Policy They will expect to find a Disclosure Policy Integrity in Debt Planning

9. Research 8 Public Budgeting & Finance / Summer 2007 Competition and Selection in Municipal Bond Sales: Evidence from Missouri MARK D. ROBBINS and BILL SIMONSEN … we find convincing evidence that local governments issuing bonds through competitive sales are achieving significantly lower borrowing costs than those that do not use competitive bidding. Integrity in Debt Planning

10. What Now? Build Trust Keep Trust Board Information Superintendent Action 9 Integrity in Debt Planning