1. Billings Public Schools $2,000,000 Elementary QZAB $2,420,000 Elementary QSCB $7,580,000 High School QSCB September 27, 2010 – School Board Meeting Bridget Ekstrom Vice President 402 East Main Street Suite 202 Bozeman, MT 59715 Phone: (406) 556-6965 E-mail: bekstrom@dadco.com

2. Estimated Sources of Funds Elementary District QZABs $ 2,000,000 $ 811,241.00 22.25% $ 1,646,111.11 45.15% $ 456,250.00 12.51% $ 732,509.00 20.09% Building Fund ♦ for purposes of paying Project Costs ♦ Debt Service Fund ♦ for purposes of repaying principal & interest on the Bonds ♦ The outer layer represents possible investment earnings the Elementary District may earn in the Building Fund. *Represents investment earnings on the Sinking Fund.

3. Estimated Sources of Funds Elementary District QSCBs $ 2,420,000 $ 981,601.00 22.25% $ 1,991,794.44 45.15% $ 552,063.00 12.51% $ 886,336.00 20.09% The outer layer represents possible investment earnings the Elementary District may earn in the Building Fund. Building Fund ♦ for purposes of paying Project Costs ♦ Debt Service Fund ♦ for purposes of repaying principal & interest on the Bonds ♦ *Represents investment earnings on the Sinking Fund.

4. Estimated Sources of Funds High School District QSCBs $7,580,000 $ 3,583,038.00 25.93% $ 6,238,761.11 45.15% $ 1,729,188.00 12.51% $ 2,267,775.00 16.41% The outer layer represents possible investment earnings the High School District may earn in the Building Fund. Building Fund ♦ for purposes of paying Project Costs ♦ Debt Service Fund ♦ for purposes of repaying principal & interest on the Bonds ♦ *Represents investment earnings on the Sinking Fund.

5. Summary for Billings Schools QSCB and QZAB Bond Issuance