1. Bond Basics
Bradley D. Viegut, Director / Fax

2. Bonds Defined Interest Rates
Serial Bonds
Term Bonds

3. Interest Rate Indexes
MMD
Bond Buyer 20

4. Types of Bonds General Obligation Bonds General Obligation Notes
State Trust Fund Loans
Bank Loans
Utility Revenue Bonds
Community Development Lease Revenue Bonds

5. Repayment Pledge/Security to Bondholders
Tax Levy Authority
Revenues of an Enterprise
Protective bond covenants
Flow of Funds
Additional bonds test
Minimum net operating revenues
Debt Service Reserve Fund
Service to the City
Lease Revenues

6. Professionals Involved in a Bond Issuance Transaction
Financial Advisor
Trustee
Underwriter
Paying Agent
Bond Counsel
Writes Legal Opinion
Prepares Transcript of Proceedings
Disclosure Counsel
Escrow Agent
Underwriter’s Counsel
Rating Agencies

7. Issuing a Bond Develop Plan of Finance
Committee presentations and authorization
Board/Council authorization to proceed
Board/Council adoption of award resolution
Closing

8. Developing a Plan of Finance for Municipal Projects
Example Capital Improvement Plan

9. Developing a Plan of Finance for Municipal Projects
Example Capital Finance Plan
$5,080,000
$2,710,000
$1,035,000
G.O. Notes
Dated: October 1, 2011
Dated: October 1, 2013
Dated: October 1, 2015
LEVY
YEAR
EXISTING
PRINCIPAL
INTEREST
COMBINED
DUE
DEBT
(4/1)
(4/1 & 10/1)
DEBT SERVICE
MILL RATE
SERVICE
AVG=
(A)
4.25%
4.50%
4.75%
2008
2009
$857,823
$2.26
2010
$863,254
$35,000
$215,156
$1,113,410
$2.80
2011
$430,582
$535,000
$203,044
$1,168,626
$2.79
2012
$429,125
$480,000
$181,475
$15,000
$121,613
$1,227,213
2013
$227,837
$505,000
$160,544
$250,000
$115,650
$1,259,031
$2.73
2014
$227,838
$525,000
$138,656
$260,000
$104,175
$48,806
$1,319,476
Final Impact Year
2015
$550,000
$115,813
$270,000
$92,250
$85,000
$46,431
$1,387,331
of 5-Year CIP
2016
$71,568
$575,000
$91,906
$285,000
$79,763
$100,000
$42,038
$1,245,274
$2.33
2017
$595,000
$67,044
$300,000
$66,600
$37,288
$1,165,931
$2.08
2018
$625,000
$41,119
$310,000
$52,875
$110,000
$32,300
$1,171,294
$1.99
2019
$655,000
$13,919
$325,000
$38,588
$115,000
$26,956
$1,174,463
$1.90
2020
$340,000
$23,625
$120,000
$21,375
$0.78
2021
$355,000
$7,988
$125,000
$15,556
$503,544
$0.74
2022
$130,000
$9,500
$139,500
$0.20
2023
$135,000
$3,206
$138,206
$0.18
$3,335,864
$1,228,675
$703,125
$283,456
$14,376,120
(A) Mill rate based on 2010 Equalized Valuation (TID-OUT) of $379,267,900 with annual growth 5%.
Funds CIP
Funds CIP
Funds 2015 CIP
$0.54
Increase

10. Developing a Plan of Finance for Tax Incremental District Projects
Example TID Proforma Analysis

11. Developing a Plan of Finance for Enterprise Financing
Example Coverage Analysis
Water Utility
PER CITY PROJECTION
PER RATE CASE
PER CITY EST.
PER CONSULTANT
PER AUDITED FINANCIALS
2012
2011
2010
2009
2008
2007
2006
Projected
with Rate Increase
Actual
TOTAL REVENUES
(3)
Operating Revenues
19,854,488
19,127,638
17,750,000
20,623,311
16,432,766
16,028,625
15,692,460
Investment Earnings
200,000
100,000
431,236
986,552
900,949
Miscellaneous Income
7,770
Capital Grant
343,999
Residential Equivalent Connection Fees
250,000
595,927
1,283,752
1,333,704
$20,304,488
$19,577,638
$18,100,000
$20,623,311
$17,803,928
$18,298,929
$17,934,883
TOTAL OPERATING EXPENSES (1)(2)
10,395,544
10,122,487
9,857,383
9,600,000
10,234,524
10,715,205
8,926,678
Net Revenues Available for Debt Service
$9,908,944
$10,182,002
$9,720,255
$8,500,000
$10,388,787
$7,569,404
$7,583,724
$9,008,205
Maximum Annual Debt Service on
the Bonds
$6,274,695
$6,285,786
$6,489,811
$6,424,359
$5,547,710
Coverage Ratio (year of MADS)
1.58
1.62
1.55
1.35
1.60
1.17
1.18
Assumes 3% increase in non-OPEB Operating Expenses, OPEB amount held constant.
(1) Net of Depreciation and Tax Equivalents.
An operational change occurred in 2009 resulting in significant savings.
(2) OPEB expense of $1,020,579 included in Operating Expenses beginning with 2007 (not included for 2006) and is included for all years thereafter.
An updated OPEB expense figure is expected before the end of 2009.
(3) Operating Revenues per Ruekert/Mielke estimate, Operating Expenses are actual per 2008 audited financials.

12. Developing a Plan of Finance for Enterprise Financing
Example Coverage Analysis
Water Utility Financing Plan
FINAL PRICING
$2,760,000
COVERAGE
EXISTING
Waterworks System Mortgage Revenue Bonds
COMBINED
RATIO
DEBT
Dated December 8, 2009
(with example
SERVICE
(First interest 3/1/10)
rate increase)
PRINCIPAL
INTEREST
TOTAL
(A)
CALENDAR
(9/1)
(3/1 & 9/1)
TIC =
4.31%
2009
$6,489,811
1.60
2010
$6,159,650
$82,594
$6,242,244
1.66
2011
$6,141,985
$113,056
$6,255,042
2012
$6,147,730
$25,000
$138,056
$6,285,786
1.65
2013
$6,137,388
$112,306
$137,306
$6,274,695
2014
$6,106,879
$111,556
$136,556
$6,243,435
2015
$6,117,218
$110,806
$135,806
$6,253,024
2016
$5,542,972
$150,000
$109,931
$259,931
$5,802,903
1.79
2017
$5,555,056
$175,000
$104,681
$279,681
$5,834,738
1.78
2018
$5,521,403
$98,556
$273,556
$5,794,959
2019
$4,712,161
$91,556
$241,556
$4,953,717
2.10
2020
$4,726,504
$165,000
$85,556
$250,556
$4,977,060
2.09
2021
$4,723,541
$170,000
$78,956
$248,956
$4,972,497
2022
$3,768,746
$72,156
$247,156
$4,015,903
2.59
2023
$3,766,508
$185,000
$65,156
$250,156
$4,016,664
2024
$3,769,918
$190,000
$57,525
$247,525
$4,017,443
2025
$894,325
$200,000
$49,688
$249,688
$1,144,013
9.08
2026
$895,613
$210,000
$40,988
$250,988
$1,146,600
9.06
2027
$215,000
$31,853
$246,853
42.08
2028
$245,000
$22,500
$267,500
38.84
2029
$255,000
$11,475
$266,475
38.99
$87,177,408
$1,563,953
$4,323,953
$91,501,360
(A) Must be maintained at a minimum of 1.25 of MADS per Bond documents; Water Utility financials as follows:
2008 with example rate increase
Gross Revenues:
$20,623,311
Less: Current Expenses:
($10,234,524)
Net Revenues:
$10,388,787

13. Closing Investment of Bond Proceeds
Temporary investment period
2-year exception
3-year exception

14. Continuing Disclosure
Principal and interest payment delinquencies;
Non-payment related defaults;
Unscheduled draws on debt service reserves reflecting financial difficulties;
Unscheduled draws on credit enhancements reflecting financial difficulties;
Substitution of credit or liquidity providers, or their failure to perform;
Adverse tax opinions or events affecting the tax-exempt status of the security;
Modifications to rights of securities holders;
Bond calls;
Defeasances;
Release, substitution, or sale of property securing repayment of the securities;
Rating changes; and
Failure to provide annual financial information as required. 

15. Ongoing Monitoring Refunding Bonds
Call Provisions
Current Refunding
Advance Refunding

16. Conclusion
Dynamic Modeling
Continual Process