1. 2016 General Obligation Bond Refinancing Results
Presented By:
Timothy Carty
Managing Director
Piper Jaffray
November 15, 2016

2. The District Sold Its Bonds During a Historically Low Interest Rate Environment
AAA-Rated Bond Interest Rate Index
District Sold Its Recent
General Obligation Refinancing Bonds on
September 27, 2016 1

3. The District Received “Aa2/AA-” Credit Ratings
From Moody’s and Standard & Poor’s
The Rating Process
District’s Team Decides to Obtain Credit Ratings from Moody’s and Standard & Poor’s
District’s Team Submits Sets of Legal and Financial Documents to Both Rating Agencies
District’s Team Hosts Conference Calls with Analysts from Both Rating Agencies
District is Assigned “Aa2/AA-” Ratings from Moody’s and Standard & Poor’s
Highlights from the Moody’s Report
Highlights from the Standard & Poor’s Report
Very Large Assessed Valuation and Sound Growth Rates
Stable Financial Position
Strength of the Voter-Approved Debt
Very Strong Median Household Effective Buying Income
Stable Average Daily Attendance
District Management’s Use of Outside Revenues, Frequent Budget Updates and Implementation of a Long-Term Capital Plan 2

4. Overview of Refinancing Outcome
Similar to Refinancing a Home Mortgage (High Interest Rates  Low Interest Rates)
Average Interest Rate: 6.04% on Old Bonds vs. 2.59% on New Bonds
Did NOT Increase Length of Old Bonds (No Extension of Bond Term)
Amount of Old Bonds That Were Refinanced: $101,735,000
Savings Locked-In for Local Taxpayers (Net of Costs): $25,984,314 (19.5% NPV)
An Average of $13.55 Per Year Savings for a Typical Homeowner in the District (Based on $373,000 Median Assessed Value of Single Family Homes)
No Capital Appreciation Bonds 3

5. What Does the Refinancing Mean for a Homeowner in the District?4

6. Total Transaction Costs of New Refinancing Bond Issue
Comparison of Transaction Costs on Refinancing Bond Issue
VS.
Taxpayer Savings
$699,438
Total Transaction Costs of New Refinancing Bond Issue
VS.
$25,984,314 Taxpayer Savings
Savings are 37.1 Times
Greater Than the Costs 5

7. Review of Past Refinancings Of
Corona-Norco Unified School District’s Outstanding General Obligation Bonds
Prior Bonds
Refinanced
Taxpayer Savings
% Savings
April 5, 2005
Refinancing of
Election of 1998 Series A
And Series C Bonds
$12,700,000
$540,829
(For Taxpayer Savings)
3.03%
July 8, 2015
Election of 2006 Series A
And 2005 Refinancing Bonds
$51,835,000
$5,237,386
7.97%
October 26, 2016
Election of 2006 Series B,
Series C and Series D Bonds
$101,735,000
$25,984,314
19.52%
Total
$166,270,000
$31,762,529 6