1. CFW Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Bond Issuance Considerations February 14, 2014 St. Helena Unified School District 1

2. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Bond Program Summary  The St. Helena Unified School District received the following voter approvals to sell general obligation bonds:  Measure A (1997): $18.8 Million  Measure B (2010):$30.0 Million  Measure C (2012):$30.0 Million  The District has general bond obligations outstanding for the 1997 and 2010 bond measures as follows: 2

3. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Assessed Valuation History  The District’s assessed valuation has grown by $3.7 billion since 2001; $2.9 Billion in the last 10 years alone  Annual growth has averaged 7.5% since 2001; 6.4% in the last 10 years  Bond program assumes a conservative growth rate of 4% 3

4. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Bond Issuance Considerations  Assembly Bill No. 182 has been introduced for consideration by the State Legislature  AB 182 seeks to place certain restrictions on school district bond financings; among these are the following:  Bond terms would be limited to 25 years  The maximum ratio of total debt service payments to borrowed funds would be 4.0 to 1  Capital appreciation bonds (CABs) with maturities greater than 10 years must contain an option for refinancing at the 10 th anniversary from the date of issue  As drafted, AB 182 gives no consideration to existing bond programs that were designed at inception to contain bond issues that would potentially exceed the restrictions it aims to place  Examples of such programs: 1.Bond measures which were designed as “tax rate extensions,” thereby limiting the tax rate that could be assessed 2.Programs which took advantage of federal interest rate subsidies, which result in significant cost savings to taxpayers but which require relatively short bond terms and therefore an upfront commitment of tax revenues that affects revenues available for subsequent issues 4

5. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Bond Issuance Plan-Measure B  Preliminary analyses by the Finance Team indicate that it may not be possible for bond issuances from Measure B to be fully compliant with AB 182 and also meet the District’s funding needs  For example, in order to remain within a payback ratio below 4.0 to 1 and still be able to access the remaining funds from Measure B, it would be necessary to sell two bond issues, each of which would exceed 25 years, with the last funds not being available until 2017  Alternatively, if the District were to eliminate the use of CABs altogether as well as fully comply with the requirements of AB 182, no significant funding could not be obtained until 2036 5

6. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Bond Issuance Plan-Measure C  The bond issuance plan for Measure C has been designed to be fully compliant with AB 182 while at the same time meeting the District’s funding needs  On the basis of conservative assumptions for the growth of assessed valuation, it is projected that the maximum tax rate required to pay off the bonds will be $22.00 per $100,000 of assessed value  Because of potential savings in the costs of issuance, if Measure C and Measure B bonds are issued simultaneously, consideration will be given to factors which may facilitate such sales 6

7. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Measures “B” and “C” Options 7

8. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Measure “B” Details 8

9. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Series A/B of Measure “B” 9 See 11X17 Sheets

10. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Measure “C” Details 10

11. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Recommendation for 3-14-2013 Move forward with the Sale of Series C from Measure “B” in an amount not to exceed $1,235,869, meeting the terms of Proposed Legislation, in March/April of 2013 Move forward with the Sale of Series “A” from Measure C in an amount not to exceed $30,000,000, meeting the terms of the Proposed Legislation, in March/April of 2013 Process with the District Facilities Committee the priority order of remaining bond projects and align to revised funding available 11

12. Caldwell Flores Winters, Inc. Facilities Planning, Public Finance, Program Administration Next Steps  District selects preliminary bond options  Bond Issuance Resolutions are presented to the Board for consideration of approval  Finance Team assists District Administration with bond issuance process  Preparation of Preliminary Official Statement and other Financing Documents  Credit presentation to Bond Rating Agency  Finalization of Bond Structure  Marketing of Bonds to potential investors  Sale of the Bonds  Funds are projected to be available to the District in April, 2013 12