Cook County, Illinois ehennessy@williamblair.com Financing Options - PowerPoint PPT Presentation

August 1, 2016 Elizabeth M. Hennessy Managing Director Oak Park-River Forest William Blair & Company High School District 200 (312) 364-8955 Cook County, Illinois ehennessy@williamblair.com Financing Options

Market Overview

Historical AAA MMD Interest Rates AAA Municipal Market Data (“MMD”) During the Past Five Years (%) 6.0 5.5 5.0 4.5 4.0 20-Yr 3.5 AAA MMD 3.0 2.5 1.99% 2.0 1.45% 10-Yr 1.5 AAA MMD 1.0 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Note: Reflects market conditions as of July 15, 2016 Source: Thomson Financial 1

Municipal Yield Curve Comparison AAA MMD Curves During the Past Seven Years (%) 5.0 MMD Yield Curve 4.5 07/15/16 4.0 07/15/15 07/15/14 3.5 07/15/13 07/15/11 3.0 07/15/09 2.5 2.0 1.5 1.0 0.5 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Note: Reflects market conditions as of July 15, 2016 Source: Thomson Financial 2

Outstanding Debt

Outstanding Debt December 15, 2009 February 1, 2005 DATED ISSUE G.O. LIMITED TAX SCHOOL BONDS G.O. LIMITED TAX SCHOOL BONDS SERIES 2009 2005 ORIGINAL PAR $11,810,000 $1,675,000 CALL DATE Non-Callable 12/1/2015 @ 100 FINAL MATURITY 12/1/2016 12/1/2017 Amount Coupon Interest Total Amount Coupon Interest Total 06/01/16 - 45,300 45,300 - 20,538 20,538 12/01/16 2,265,000 45,300 2,310,300 70,000 20,538 90,538 4.00% 3.80% 06/01/17 - 19,208 19,208 12/01/17 985,000 19,208 1,004,208 3.90% 06/01/18 12/01/18 06/01/19 12/01/19 06/01/20 12/01/20 06/01/21 12/01/21 06/01/22 12/01/22 06/01/23 12/01/23 TOTAL $ 2,265,000 $ 90,600 $ 2,355,600 $ 1,055,000 $ 79,490 $ 1,134,490 NOTES Refunded portions of the 1998 Bonds New Money for 2005 renovations 3

Statutory Debt Limit High School Distict Number 200 (Oak Park and River Forest) Statutory Debt Limit Equalized Assessed Valuation 2015 1,804,789,911.00 Times: Statutory Debt Limit 6.90% 124,530,503.86 Less: Outstanding Bond Principal (3,320,000.00) Net Debt Limit 121,210,503.86 William Blair & Company, LLC 6/15/2016 4

Proposed Plan of Finance

Financing Plan The District is considering these scenarios for addressing its capital needs in the next 5 years: • • • Option A: Option B: Option C: • • • Renovate two pools in place Build Natatorium and parking garage Build underground Natatorium addition • • Build performing arts addition Expand performing arts space • Expand performing arts space • • Renovate locker rooms Renovate locker rooms • Renovate locker rooms • • Build additional instructional space Build additional instructional • Build additional instructional space space • Total Cost Estimated at $40M • • Total Cost Estimated at $55M Total Cost Estimated at $68M In each option the District intends to use $20M of its fund balance so the resulting bond financing questions would be in the amount of $20M for Option A, $35M for Option B and $48M for Option C. 5

FY2017 Estimated Budget for Operating Funds Including $20M for Capital Projects Oper & Working Operating Fund Balance/ Education Maint. Cash Funds Expenditures Fund Balance July 1, 2016 $76,229,788 $1,395,520 $4,889,505 $82,514,813 125.28% Revenues 58,349,780 11,411,732 1,007,036 70,768,548 Expenditures 58,994,731 6,870,482 0 65,865,213 Capital Project Expenditures 0 0 0 0 Total Expenditures 58,994,731 6,870,482 0 65,865,213 Surplus/Deficit (644,951) 4,541,250 1,007,036 4,903,335 Transfers to Capital Projects (20,000,000) (3,792,513) (23,792,513) Transfer from Ed Fund to O&M Transfer from Working Cash to Debt Service (2,420,045) (2,420,045) Ending Balance June 30, 2017 $55,584,837 $2,144,257 $3,476,496 $61,205,590 92.93% Note: FY2017 Budget is not final and subject to change. 6

Option A: $20M Referendum Bonds; $20M Fund Balance High School Distict Number 200 (Oak Park and River Forest) Summary of Outstanding Debt Service Tax Rate $20 Million Referendum, 20 Year Level Debt Service, January 2017 Referendum Total Non-Referendum Referendum Referendum Estimated Estimated Total Proposed Tax Equalized Current Debt Service Proposed $20mm Proposed Debt Service Tax Rate Impact on Impact on Assessed Value DSEB D/S Abatements ULT D/S CAPI/FOH ULT D/S Debt Service Tax Rate Increase $362,000 Home (1) $530,700 Home (1) Year - - 2015 1,804,789,911 2,466,675 (2,466,675) - - 0.000 - - 2016 1,804,789,911 1,023,415 (1,023,415) 805,292 (805,292) 0.000 1,453,500 1,453,500 0.081 2017 1,804,789,911 - - 1,453,500 - 0.081 $72.16 $108.41 1,454,750 1,454,750 0.081 2018 1,804,789,911 - - 1,454,750 - 1,454,500 1,454,500 0.081 2019 1,804,789,911 - - 1,454,500 - 1,452,750 1,452,750 0.080 2020 1,804,789,911 - - 1,452,750 - 1,454,500 1,454,500 0.081 2021 1,804,789,911 - - 1,454,500 - 1,454,500 1,454,500 0.081 2022 1,804,789,911 - - 1,454,500 - 1,452,750 1,452,750 0.080 2023 1,804,789,911 - - 1,452,750 - 1,454,250 1,454,250 0.081 2024 1,804,789,911 - - 1,454,250 - 1,453,750 1,453,750 0.081 2025 1,804,789,911 - - 1,453,750 - 1,451,250 1,451,250 2026 1,804,789,911 - - 1,451,250 - 0.080 1,451,750 1,451,750 2027 1,804,789,911 - - 1,451,750 - 0.080 1,455,000 1,455,000 2028 1,804,789,911 - - 1,455,000 - 0.081 1,455,750 1,455,750 0.081 2029 1,804,789,911 - - 1,455,750 - 1,454,000 1,454,000 0.081 2030 1,804,789,911 - - 1,454,000 - 1,454,750 1,454,750 0.081 2031 1,804,789,911 - - 1,454,750 - 1,452,750 1,452,750 0.080 2032 1,804,789,911 - - 1,452,750 - 1,453,000 1,453,000 0.081 2033 1,804,789,911 - - 1,453,000 - 1,455,250 1,455,250 0.081 2034 1,804,789,911 - - 1,455,250 - 1,454,250 1,454,250 0.081 2035 1,804,789,911 - - 1,454,250 - 28,428,292 (805,292) 27,623,000 27,623,000 1,023,415 (1,023,415) All In True Interest Cost: 3.13% (1) According to Zillow Median Home Sale Values in Oak Park is $362,000 (1) According to Zillow Median Home Sale Values in River Forest is $530,700 William Blair & Company, LLC 7/27/2016 Formula: Impact of Tax Rate Increase on Market Value Home (Market Value of Home*10%*2.6685 – 7,000 Homestead exemption * (Tax Rate Increase/100) 7

Option B: $35M Referendum Bonds; $20M Fund Balance High School Distict Number 200 (Oak Park and River Forest) Summary of Outstanding Debt Service Tax Rate $35 Million Referendum, 20 Year Level Debt Service, January 2017 Referendum Total Non-Referendum Referendum Referendum Estimated Estimated Total Proposed Tax Equalized Current Debt Service Proposed $35mm Proposed B&I Tax Rate Impact on Impact on Year Assessed Value DSEB D/S Abatements ULT D/S CAPI/FOH ULT D/S Debt Service Tax Rate Increase $362,000 Home (1) $530,700 Home (1) - - 2015 1,804,789,911 2,466,675 (2,466,675) - - 0.000 - - 2016 1,804,789,911 1,023,415 (1,023,415) 1,409,375 (1,409,375) 0.000 2,542,500 2,542,500 0.141 2017 1,804,789,911 - - 2,542,500 - 0.141 $126.22 $189.64 2,542,250 2,542,250 0.141 2018 1,804,789,911 - - 2,542,250 - 2,544,500 2,544,500 0.141 2019 1,804,789,911 - - 2,544,500 - 2,544,000 2,544,000 0.141 2020 1,804,789,911 - - 2,544,000 - 2,545,750 2,545,750 0.141 2021 1,804,789,911 - - 2,545,750 - 2,544,500 2,544,500 0.141 2022 1,804,789,911 - - 2,544,500 - 2,545,250 2,545,250 0.141 2023 1,804,789,911 - - 2,545,250 - 2,542,750 2,542,750 0.141 2024 1,804,789,911 - - 2,542,750 - 2,542,000 2,542,000 0.141 2025 1,804,789,911 - - 2,542,000 - 2,542,750 2,542,750 0.141 2026 1,804,789,911 - - 2,542,750 - 2,544,750 2,544,750 2027 1,804,789,911 - - 2,544,750 - 0.141 2,542,750 2,542,750 2028 1,804,789,911 - - 2,542,750 - 0.141 2,546,750 2,546,750 2029 1,804,789,911 - - 2,546,750 - 0.141 2,546,250 2,546,250 0.141 2030 1,804,789,911 - - 2,546,250 - 2,546,250 2,546,250 0.141 2031 1,804,789,911 - - 2,546,250 - 2,546,500 2,546,500 0.141 2032 1,804,789,911 - - 2,546,500 - 2,546,750 2,546,750 0.141 2033 1,804,789,911 - - 2,546,750 - 2,546,750 2,546,750 0.141 2034 1,804,789,911 - - 2,546,750 - 2,546,250 2,546,250 0.141 2035 1,804,789,911 - - 2,546,250 - 3,490,090 (3,490,090) 49,758,625 (1,409,375) 49,758,625 48,349,250 All In True Interest Cost: 3.14% (1) According to Zillow Median Home Sale Values in Oak Park is $362,000 (1) According to Zillow Median Home Sale Values in River Forest is $530,700 William Blair & Company, LLC 7/27/2016 Formula: Impact of Tax Rate Increase on Market Value Home (Market Value of Home*10%*2.6685 – 7,000 Homestead exemption * (Tax Rate Increase/100) 8