RBC Capital Markets Presentation to: Financing of Capital Projects - PowerPoint PPT Presentation

RBC Capital Markets Presentation to: Financing of Capital Projects March 26, 2019 STRICTLY PRIVATE AND CONFIDENTIAL Michael C. Lillys Daniel C. O’Brien Lauren Stadel Managing Director Director Director 130 North 18th Street 130 North 18th Street 2101 Oregon Pike Philadelphia, PA 19103 Philadelphia, PA 19103 Lancaster, PA 17601 Phone: (215) 832-1501 Phone: (215) 832-1526 Phone: (717) 519-5925 Email: michael.lillys@rbccm.com Email: daniel.obrien@rbccm.com Email: lauren.stadel@rbccm.com

Interest Rate History (1999 – YTD)  MMD tax-exempt interest rates, which are published daily, are widely used benchmarks in municipal finance for pricing bond issues Interest Rate History 10 Year AAA MMD (Municipal Market Data) Since January 4, 1999 5.50 10 Year 5.00 MMD Date Max: 5.37 05/18/2000 4.50 Min: 1.29 06/27/2016 Average: 3.15 - 4.00 Current: 1.90 03/25/2019 3.50 3.00 2.50 2.00 Current 10 year MMD = 1.90% 1.50 1.00 0.50 0.00 10 Year MMD Current 10 Year MMD RBC Capital Markets 1

Gross Debt Service (Prior to State Reimbursement) Gross Debt Service 1 2 3 4 5 6 7 8 QSCB - QSCB - G.O. Bonds G.O. Note G.O. Bonds G.O. Bonds Total Period Series of Series of Series of Series of Series of Series of Gross Debt Ending 2010 [1] 2011 [2] 2012 2014 2015 2018 Service 06/30/2019 593,833 45,988 167,900 40,729 3,323,775 88,742 4,260,967 06/30/2020 593,833 45,988 166,500 65,708 3,320,250 138,629 4,330,908 06/30/2021 593,833 45,988 165,100 68,156 3,334,700 138,543 4,346,320 06/30/2022 593,833 45,988 1,428,700 715,542 754,550 138,448 3,677,060 06/30/2023 593,833 45,988 1,426,800 724,189 766,550 138,344 3,695,704 06/30/2024 593,833 45,988 1,429,400 450,349 1,050,400 138,233 3,708,203 06/30/2025 593,833 45,988 0 0 0 2,512,447 3,152,268 06/30/2026 466,583 36,423 0 0 0 2,526,844 3,029,850 06/30/2027 0 0 0 0 0 75,984 75,984 06/30/2028 0 0 0 0 0 0 0 TOTALS 4,623,417 358,339 4,784,400 2,064,673 12,550,225 5,896,212 30,277,265 Outstanding 2,714,667 214,857 4,355,000 1,874,000 11,365,000 5,000,000 25,523,524 Principal*: Purpose: New Money New Money AdvRef 2004B AdvRef 2005 CurRef 2005 New Money Call Date: Make Whole Make Whole 02/15/2017 Anytime Non-Callable 10/15/2023 Reimb %: 0.00% 0.00% 0.00% 53.40% 53.40% 0.00% 17/18 MVAR%: 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% Local Share: 100.00% 100.00% 100.00% 62.94% 62.94% 100.00% State Share: 0.00% 0.00% 0.00% 37.06% 37.06% 0.00% [1] - Assumes federal subsidy is 4.479% [2] - Assumes federal subsidy is 4.654% *Outstanding principal as of July 1, 2018. RBC Capital Markets 2

Net Debt Service (After State Reimbursement) Net Debt Service 9 10 11 12 13 14 15 16 QSCB - QSCB - G.O. Bonds G.O. Note G.O. Bonds G.O. Bonds Total Period Series of Series of Series of Series of Series of Series of Net Debt Ending 2010 [1] 2011 [2] 2012 2014 2015 2018 Service 06/30/2019 365,833 28,488 167,900 25,633 2,091,820 88,742 2,768,416 06/30/2020 365,833 28,488 166,500 41,353 2,089,601 138,629 2,830,405 06/30/2021 365,833 28,488 165,100 42,894 2,098,695 138,543 2,839,554 06/30/2022 365,833 28,488 1,428,700 450,327 474,876 138,448 2,886,672 06/30/2023 365,833 28,488 1,426,800 455,769 482,429 138,344 2,897,663 06/30/2024 365,833 28,488 1,429,400 283,428 661,070 138,233 2,906,451 06/30/2025 365,833 28,488 0 0 0 2,512,447 2,906,768 06/30/2026 352,583 27,673 0 0 0 2,526,844 2,907,100 06/30/2027 0 0 0 0 0 75,984 75,984 06/30/2028 0 0 0 0 0 0 0 TOTALS 2,913,417 227,089 4,784,400 1,299,403 7,898,492 5,896,212 23,019,012 Outstanding 2,714,667 214,857 4,355,000 1,874,000 11,365,000 5,000,000 25,523,524 Principal*: Purpose: New Money New Money AdvRef 2004B AdvRef 2005 CurRef 2005 New Money Call Date: Make Whole Make Whole 02/15/2017 Anytime Non-Callable 10/15/2023 Reimb %: 0.00% 0.00% 0.00% 53.40% 53.40% 0.00% 17/18 MVAR%: 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% Local Share: 100.00% 100.00% 100.00% 62.94% 62.94% 100.00% State Share: 0.00% 0.00% 0.00% 37.06% 37.06% 0.00% [1] - Assumes federal subsidy is 4.479% [2] - Assumes federal subsidy is 4.654% *Outstanding principal as of July 1, 2018. RBC Capital Markets 3

Capital Projects to be Financed  New Middle School, Aronimink and Capital Project Needs: Design and Documentation: 2019 New Middle School and Aronimink Roof Replacement (Highland Park) $ 6,500,000 Bond Issue Window Replacement (BHMS) 1/3 Cost New Middle School 2020 $ 37,300,109 1/2 Cost Aronimink Bond Issue $5M Capital Projects 1/3 Cost New Middle School 2021 1/2 Cost Aronimink $ 37,300,109 Bond Issue $5M Capital Projects 2022 1/3 Cost New Middle School $ 25,737,525 Bond Issue $5M Capital Projects Total: $ 106,837,743  Financing Plan Goal: ‒ Phase-in annual Budget/Millage Impact over as many years as possible in approximately equal amounts each year. RBC Capital Markets 4