1. Berkeley County School District Debt Service & Referendum Millage Ms. Brenda Blackburn, Superintendent Brantley Thomas, CFO March 8, 2016

2. 2 Referendum projects continue to remain on time and within budget

3. EFFICIENCIES 3 Positive bond rating Bond refunding opportunities – current and future Maximizing interest on referendum proceeds Shared property for Philip Simmons’ Schools to take advantage of shared infrastructure Use of local vendors = reinvestment in the economy of Berkeley County Integrated product delivery biding practices

4. FINANCES Aa2 rating exceeds the US school district median of Aa3 Strong financial position Diverse tax base with a sound socioeconomic profile Financial position is positive and solid Net cash balance as a percent of revenues (25.7%) exceeds the US median 4

5. Net Savings Amount Gross Savings:$27,088,871 Present Value Savings:$22,093,965 Present Value Savings %:11.02% Interest Rate Reduction Series 2003 IPRB Interest Rate:5.25% Series 2013 REF Interest Rate:3.63% Interest Rate Reduction:1.62%  Gross savings provided additional funds for capital improvement projects 5

6. Net Savings Amount Gross Savings:$18,456,438 Present Value Savings:$13,303,868 Present Value Savings %:14.85% Interest Rate Reduction Series 2006 IPRB Interest Rate:5.05% Series 2015 REF Interest Rate:3.04% Interest Rate Reduction2.01% 6

7. Old Net Debt Service New Net Debt Service Savings $43,523,875.00$41,757,031.25$1,766,843.75 7 BCSD is always seeking to maximize interest savings

8. Time Deposits – Extension of maturity date Demand Deposits – Immediately available State & Local Government Investment Time and Demand Deposits Total Demand Deposits:$44,263,213.58 Total Time Deposits:$21,500,000 Range of Interest Rate:.290% -.520% Range of Maturity Date:June 1, 2016 – March 1, 2017 8 Wise investment practice increases available funds for referendum projects

9. The School District’s outstanding debt at June 30, 2015, applicable to the School District’s debt limit (excluding bond premium) was as follows: $542,512,334 9 BCSD debt is well below the South Carolina Constitutional limit Outstanding debt applicable to 8% debt limit Total outstanding debt:$542,512,334 Debt not applicable to 8% debt limit:$518,320,334 Total Debt applicable to 8% debt limit:$24,192,000 The School District’s 8% debt limit:$62,152,557 Balance remaining under 8% debt limit:$37,690,557

10. Fiscal Year Debt Service Millage 10 By the terms of the 2012 referendum the community has agreed to support a 10 mill increase for capital facilities

11. 2016-2017 NEXT STEPS 11 June 14 th Board Meeting items for action: Cash Flow for FY 2016-2017 for Tax Anticipation Note Resolution for Annual Installment Payments Resolution for Phase 2 of 2012 Referendum Close on Phase 2 of 2012 Referendum in FY 2016-2017 Notice of millage increase of 10 mills as approved by the community for debt service beginning FY 2016-2017