1. Matthew Conde

2.  “Galloping Gertie” Built and Collapsed in 1940  Second Bridge Built in1950 (so far, so good)

3.  Bond Proceeds - $800 million  Motor Vehicle Fund - $39 million  Investment Income - $10 million Source: Tacoma Narrows Bridge Project Financial Plan Version 1.0, page 9, WSDOT, July 2002.

4.  Common Bond-Backed Projects: Road ImprovementEducation

5. Public Utilities Publicly-Owned Airports Mass Transit

6.  “For the Public Good” criteria  Determination Subject to IRS Review Sports Arenas are an example of a taxed Municipal Bond

7.  Repayment based on ability to tax  Considered the safest type of Municipal Bond Low Income Housing

8.  Repayment based on revenues from project  Not as safe due to potential volatility of revenues Oil Drilling

9.  Enacted to Reduce Municipal Borrowing Costs  Direct Payment BABs: 35% subsidy of interest paid by the issuer  Tax Credit BABs: Provides participating bondholders with tax credit

10. From wellsfargoadvantagefunds.com 2011 outlook

11.  Tax exempt (Single, Double, Triple)  Capital Gains are subject to tax Your federal income tax bracket Is a municipal bond fund appropriate? 15%Unlikely 25%Likely 28%Very likely 33%Highly likely 35%Highly likely From personal.fidelity.com

12.  There are limits to bond-related taxation  Municipal bonds may carry social implications Vs.

13.  “Providing tax exemptions to residents of issuing municipalities creates economic harm”  How would you support or refute this claim?

14.  1988: Muni tax exemptions not protected  2008 – Department of Revenue of Kentucky v. Davis : “Tax structure is one of the tools of competition”

16.  Bond related debt continues to grow….

17. Funding Liquidity – Issuer will be unable to meet liabilities when they come due, or will only meet in unfavorable economic circumstances Asset Liquidity – Asset cannot be sold due to lack of market liquidity

18.  Municipal Bonds finance infrastructure  Investors are attracted to tax exemptions; thus they have (relatively) lower return requirements  G.O. Munis are backed by tax revenues, Revenue Munis by project revenues  Even safe investment vehicles have social implications and risks attached