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									Germantown School District
Refinancing of WRS Liability and QSCB Issuance
November 22, 2010


I. Goals
                                                                                     Moody’s   Standard & Poor’s
      Refinance WRS Liability
                                                                                      Aaa            AAA
             Current Balance Approximately $4.5 Million
                                                                                      Aa1            AA+
             Current Interest Rate 7.8%                                              Aa2             AA
      Issue Qualified School Construction Bonds Allocation of $1 Million             Aa3            AA-
             Minimize Overall Fund 38 Payments                                        A1             A+
             Maximize Benefit of Low Cost Financing                                   A2             A
                                                                                       A3             A-
II. Key Considerations
      Existing Non-Referendum Debt Payments
      Low Interest Rate Environment
      Impact on Operational Budget
             Impact of Loss of Federal Funding
             Future Changes in State Funding
III. Recommendation –General Obligation Refunding Bonds
      Maximize Term of Qualified School Construction Bonds
      Refinance WRS Prior to the Next Interest Charge (Prior to January 31, 2011)
      Structure Debt Payments to Best Meet District Needs




     Michel D. Clark
     414-765-7326
     mdclark@rwbaird.com                                                                            Page 1
Germantown School District
Refinancing of WRS Liability and QSCB Issuance
November 22, 2010

IV. WRS Amortization Schedule
               ORIGINAL ASSUMPTIONS:
               Contribution Rate.......................................................................................................         1.30%
               2009 Salary Base.......................................................................................................     $21,309,181
               2009 Prior Service Balance...........................................................................................        $4,508,768
               Interest Rate............................................................................................................         7.80%
               Salary Increase Rate..................................................................................................           2.00%

                                     Beginning                                                                      Ending                                Salary
                    Year              Balance                  Payments                  Interest                  Balance                 Salaries      Increase



                1    2010              $4,508,768                  $282,560                 $329,644               $4,555,853              $21,735,365    2.00%
                2    2011              $4,555,853                  $288,211                 $332,876               $4,600,518              $22,170,072    2.00%
                3    2012              $4,600,518                  $293,975                 $335,910               $4,642,453              $22,613,473    2.00%
                4    2013              $4,642,453                  $299,855                 $338,723               $4,681,321              $23,065,743    2.00%
                5    2014              $4,681,321                  $305,852                 $341,287               $4,716,756              $23,527,058    2.00%
                6    2015              $4,716,756                  $311,969                 $343,573               $4,748,360              $23,997,599    2.00%
                7    2016              $4,748,360                  $318,208                 $345,552               $4,775,704              $24,477,551    2.00%
                8    2017              $4,775,704                  $324,572                 $347,188               $4,798,320              $24,967,102    2.00%
                9    2018              $4,798,320                  $331,064                 $348,446               $4,815,702              $25,466,444    2.00%
               10    2019              $4,815,702                  $337,685                 $349,285               $4,827,302              $25,975,773    2.00%
               11    2020              $4,827,302                  $344,439                 $349,663               $4,832,527              $26,495,288    2.00%
               12    2021              $4,832,527                  $351,328                 $349,534               $4,830,733              $27,025,194    2.00%
               13    2022              $4,830,733                  $358,354                 $348,846               $4,821,225              $27,565,698    2.00%
               14    2023              $4,821,225                  $365,521                 $347,545               $4,803,248              $28,117,012    2.00%
               15    2024              $4,803,248                  $372,832                 $345,573               $4,775,989              $28,679,352    2.00%
               16    2025              $4,775,989                  $380,288                 $342,865               $4,738,566              $29,252,939    2.00%
               17    2026              $4,738,566                  $387,894                 $339,352               $4,690,024              $29,837,998    2.00%
               18    2027              $4,690,024                  $395,652                 $334,961               $4,629,333              $30,434,758    2.00%
               19    2028              $4,629,333                  $403,565                 $329,610               $4,555,378              $31,043,453    2.00%
               20    2029              $4,555,378                  $411,636                 $323,212               $4,466,954              $31,664,322    2.00%



                                                               $6,865,458               $6,823,644

                               December 2010 Payoff:
                                  2010 Actual Balance                                                              $4,508,768
                                  Less: Est. 2010 Payments                                                          ($259,013)
                                                                                                                   $4,249,755


    Michel D. Clark
    414-765-7326
    mdclark@rwbaird.com                                                                                                                                             Page 2
Germantown School District
Refinancing of WRS Liability and QSCB Issuance
November 22, 2010

V. Existing Debt Schedules
       Fund 39 Debt Service                           Fund 38 Debt Service                         Projected WRS Payments Total Fund 38 and WRS Lease Payments Total Non-Referendum

            PRINCIPAL         INTEREST    TOTAL            PRINCIPAL         INTEREST    TOTAL




   2011 $         2,025,000 $140,813     $2,165,813   $           177,569 $ 14,555      $192,124   $              288,211   $          480,335   $    768,182   $         1,248,517
   2012 $         2,165,000 $ 59,719     $2,224,719   $           100,054 $ 7,147       $107,200   $              293,975   $          401,175   $    588,549   $           989,724
   2013 $           765,000 $ 9,563      $ 774,563    $           103,575 $ 3,625       $107,200   $              299,855   $          407,055   $    453,343   $           860,398
   2014                                               $               -   $ -           $    -     $              305,852   $          305,852   $    382,958   $           688,810
   2015                                               $           100,000 $ -           $100,000   $              311,969   $          411,969   $    236,089   $           648,058
   2016                                               $           100,000 $ -           $100,000   $              318,208   $          418,208                  $           418,208
   2017                                               $           140,000 $ -           $140,000   $              324,572   $          464,572                  $           464,572
   2018                                               $           370,000 $ -           $370,000   $              331,064   $          701,064                  $           701,064
   2019                                               $           367,000 $ -           $367,000   $              337,685   $          704,685                  $           704,685
   2020                                                                                            $              344,439   $          344,439                  $           344,439
   2021                                                                                            $              351,328   $          351,328                  $           351,328
   2022                                                                                            $              358,354   $          358,354                  $           358,354
   2023                                                                                            $              365,521   $          365,521                  $           365,521
   2024                                                                                            $              372,832   $          372,832                  $           372,832
   2025                                                                                            $              380,288   $          380,288                  $           380,288
   2026                                                                                            $              387,894   $          387,894                  $           387,894
   2027                                                                                            $              395,652   $          395,652                  $           395,652
   2028                                                                                            $              403,565   $          403,565                  $           403,565
   2029                                                                                            $              411,636   $          411,636                  $           411,636




    Michel D. Clark
    414-765-7326
    mdclark@rwbaird.com                                                                                                                                               Page 3
          Germantown School District
          Refinancing of WRS Liability and QSCB Issuance
          November 22, 2010

     VI. Financing Options
Option 1
          (Fiscal Year)                                                                                         (Calendar Year Payments)
                                                                                                                           (1)
                                                         REFINANCE WRS DEBT                      REFINANCE TAXABLE NOTE                                            NEW MONEY
                              EXISTING                          $4,260,000                                $4,330,000                                              $1,000,000                               COMBINED
          ESTIMATED            FUND 38               Taxable Bond Anticipation Notes              Taxable G.O. Refunding Bonds                      Taxable G.O. Promissory Notes (QSCB-DP)                 FUND 38
            PRIOR           DEBT SERVICE               Dated: December 15, 2010                      Dated: February 1, 2011                                Dated: December 15, 2010                      DEBT SERVICE
          PAYMENTS           PAYMENTS            PRINCIPAL     INTEREST         TOTAL        PRINCIPAL      INTEREST       TOTAL      PRINCIPAL       SINKING FUND        INTEREST       LESS: SUBSIDY     PAYMENTS
YEAR                                             (9/15/11)    Avg = 1.75%                      (4/1)      Avg = 5.00%                   (4/1)              (4/1)         Avg = 4.05%    Net Avg = 0.00%
                                                                                                                                                         Estimated
                                                                                                                                                        Annual "set-
                                                                                                                                                       aside" Sinking
                                                                                                                                                       Fund Deposits
2010         $183,664            $192,124                                                                                                                                                                     $192,124
2011         $286,233 (a)        $192,124        $4,260,000         $18,638   $4,278,638       $185,000      $121,936     $306,936                                              $32,175                       $531,235
2012         $291,958            $107,200                                                      $135,000      $181,529     $316,529                         $100,000             $40,500       ($32,175)       $532,054
2013         $297,797            $107,200                                                      $145,000      $179,489     $324,489                         $100,000             $40,500       ($40,500)       $531,689
2014         $303,753                  $0                                                      $255,000      $175,870     $430,870                         $100,000             $40,500       ($40,500)       $530,870
2015         $309,828            $100,000            Assumes Principal Refunded by             $160,000      $171,688     $331,688                         $100,000             $40,500       ($40,500)       $531,688
2016         $316,024            $100,000       Taxable G.O. Refunding Bonds on 3/15/11        $160,000      $167,888     $327,888                         $105,000             $40,500       ($40,500)       $532,888
2017         $322,345            $140,000                                                      $125,000      $163,941     $288,941                         $105,000             $40,500       ($40,500)       $533,941
2018         $328,792            $370,000               Assumes Interest Paid by                     $0      $162,035     $162,035                                              $40,500       ($40,500)       $532,035
2019         $335,368            $367,000            Remaining 2011 Fiscal Year Levy                 $0      $162,035     $162,035                                              $40,500       ($40,500)       $529,035
2020         $342,075                                                                                $0      $162,035     $162,035     $1,000,000          $390,000             $20,250       ($40,500)       $531,785
2021         $348,916                                                                          $270,000      $156,298     $426,298                                                            ($20,250)       $406,048
2022         $355,895                                                                          $260,000      $144,775     $404,775                                                                            $404,775
2023         $363,013                                                                          $275,000      $132,596     $407,596                                                                            $407,596
2024         $370,273                                                                          $285,000      $119,220     $404,220                                                                            $404,220
2025         $377,678                                                                          $300,000      $104,588     $404,588         This would be the projected                                        $404,588
2026         $385,232                                                                          $315,000       $88,669     $403,669                                                                            $403,669
2027         $392,937                                                                          $335,000       $71,439     $406,439         structure for a 10 year QSCB issue                                 $406,439
2028
2029
             $400,795
             $408,811
                                                                                               $355,000
                                                                                               $375,000
                                                                                                              $52,804
                                                                                                              $32,724
                                                                                                                          $407,804
                                                                                                                          $407,724
                                                                                                                                           even without the WRS financing.                                    $407,804
                                                                                                                                                                                                              $407,724
2030         $144,073                                                                          $395,000       $11,159     $406,159                                                                            $406,159

           $6,865,458          $1,675,648        $4,260,000        $18,638     $4,278,638    $4,330,000    $2,562,715   $6,892,715     $1,000,000        $1,000,000            $376,425      ($376,425)      $9,568,363



                            (1) Interest on Taxable NANs assumed to be paid with 2011 fiscal year levy.




(a) District will make all liability payments through                                                      Savings Summary
11/30/10, remaining 10-11 estimated fiscal year levy                          Gross savings after 40-year amort period……………………………       ($311,971)
will be used to pay 2011 calendar year debt service payments.                 Liability balance remaining 1/1/30…………………………………………       $4,466,954
                                                                              Total Gross Savings… … … … … … … … … … … … … … … … …    $4,154,983



                   Michel D. Clark
                   414-765-7326
                   mdclark@rwbaird.com                                                                                                                                                              Page 4
            Germantown School District
            Refinancing of WRS Liability and QSCB Issuance
            November 22, 2010

Option 2
          (Fiscal Year)                                                        (Calendar Year Payments)                                                                           (Calendar Year Payments)
                                                                                                                              (1)
                                                           REFINANCE WRS DEBT                       REFINANCE TAXABLE NOTE                           NEW MONEY                                               NEW MONEY
                              EXISTING                          $4,260,000                                   $4,330,000                              $1,000,000                                              $1,000,000                               COMBINED
          ESTIMATED            FUND 38                Taxable Note Anticipation Notes                Taxable G.O. Refunding Bonds              Bond Anticipation Notes                         Taxable G.O. Promissory Notes (QSCB-DP)                 FUND 38
            PRIOR           DEBT SERVICE                Dated: December 15, 2010                        Dated: February 1, 2011               Dated: December 15, 2010                                  Dated: February 1, 2011                      DEBT SERVICE
          PAYMENTS           PAYMENTS            PRINCIPAL      INTEREST          TOTAL         PRINCIPAL      INTEREST       TOTAL     PRINCIPAL     INTEREST        TOTAL        PRINCIPAL     SINKING FUND        INTEREST       LESS: SUBSIDY     PAYMENTS
YEAR                                             (10/1/11)     Avg = 1.75%                        (4/1)      Avg = 3.08%                (10/1/11)   Avg = 1.75%                      (4/1)            (4/1)         Avg = 5.30%    Net Avg = 0.00%

                                                                                                                                                                                                   Estimated
                                                                                                                                                                                                  Annual "set-
2010         $183,664            $192,124                                                                                                                                                            aside"                                              $192,124
2011         $286,233 (a)        $192,124         $4,260,000         $18,638    $4,278,638        $350,000       $69,671     $419,671   $1,000,000        $4,375   $1,004,375                     Sinking Fund             $35,333                       $647,128
2012         $291,958            $107,200                                                         $425,000      $100,844     $525,844                                                                                      $53,000       ($35,333)       $650,711
2013         $297,797            $107,200                                                         $445,000       $94,516     $539,516                                                                                      $53,000       ($53,000)       $646,716
2014         $303,753                  $0                                                         $565,000       $85,478     $650,478                                                                                      $53,000       ($53,000)       $650,478
2015         $309,828            $100,000              Assumes Principal Refunded by              $475,000       $74,885     $549,885        Assumes Principal Refunded by                                                 $53,000       ($53,000)       $649,885
2016         $316,024            $100,000         Taxable G.O. Refunding Bonds on 3/15/11         $485,000       $63,476     $548,476   Taxable G.O. Refunding Bonds on 3/15/11                                            $53,000       ($53,000)       $648,476
2017         $322,345            $140,000                                                         $460,000       $50,278     $510,278                                                                                      $53,000       ($53,000)       $650,278
2018         $328,792            $370,000                Assumes Interest Paid by                 $240,000       $39,303     $279,303          Assumes Interest Paid by                                                    $53,000       ($53,000)       $649,303
2019         $335,368            $367,000             Remaining 2011 Fiscal Year Levy             $250,000       $30,530     $280,530       Remaining 2011 Fiscal Year Levy                                                $53,000       ($53,000)       $647,530
2020         $342,075                                                                             $635,000       $12,859     $647,859                                                                                      $53,000       ($53,000)       $647,859
2021         $348,916                                                                                                                                                                                 $140,000             $53,000       ($53,000)       $140,000
2022         $355,895                                                                                                                                                                                 $140,000             $53,000       ($53,000)       $140,000
2023         $363,013                                                                                                                                                                                 $140,000             $53,000       ($53,000)       $140,000
2024         $370,273                                                                                                                                                                                 $140,000             $53,000       ($53,000)       $140,000
2025         $377,678                                                                                                                                                                                 $140,000             $53,000       ($53,000)       $140,000
2026         $385,232                                                                                                                                                                                 $135,000             $53,000       ($53,000)       $135,000
2027         $392,937                                                                                                                                                               $1,000,000        $165,000             $26,500       ($53,000)       $138,500
2028         $400,795                                                                                                                                                                                                                    ($26,500)       ($26,500)
2029         $408,811
2030         $144,073

           $6,865,458          $1,675,648         $4,260,000         $18,638      $4,278,638    $4,330,000      $621,838   $4,951,838   $1,000,000        $4,375    $1,004,375      $1,000,000      $1,000,000            $856,833      ($856,833)     $7,627,486



                            (1) Interest on Taxable NANs assumed to be paid with 2011 fiscal year levy.




(a) District will make all liability payments through                                                       Savings Summary
11/30/10, remaining 10-11 estimated fiscal year levy                           Gross savings after 40-year amort period……………………………… $1,624,531
will be used to pay 2011 calendar year debt service payments.                  Liability balance remaining 1/1/30…………………………………………… $4,466,954
                                                                               Total Gross Savings… … … … … … … … … … … … … … … … … …$6,091,485




                          Michel D. Clark
                          414-765-7326
                          mdclark@rwbaird.com                                                                                                                                                                                           Page 5
             Germantown School District
             Refinancing of WRS Liability and QSCB Issuance
             November 22, 2010

Option 3
          (Fiscal Year)                                                        (Calendar Year Payments)                                                                           (Calendar Year Payments)
                                                                                                                              (1)
                                                           REFINANCE WRS DEBT                       REFINANCE TAXABLE NOTE                           NEW MONEY                                               NEW MONEY
                              EXISTING                          $4,260,000                                   $4,330,000                              $1,000,000                                              $1,000,000                               COMBINED
          ESTIMATED            FUND 38                Taxable Note Anticipation Notes               Taxable G.O. Refunding Bonds               Bond Anticipation Notes                         Taxable G.O. Promissory Notes (QSCB-DP)                 FUND 38        GROSS
            PRIOR           DEBT SERVICE                Dated: December 15, 2010                        Dated: February 1, 2011               Dated: December 15, 2010                                  Dated: February 1, 2011                      DEBT SERVICE    SAVINGS
          PAYMENTS           PAYMENTS            PRINCIPAL      INTEREST          TOTAL         PRINCIPAL      INTEREST       TOTAL     PRINCIPAL     INTEREST        TOTAL        PRINCIPAL     SINKING FUND        INTEREST       LESS: SUBSIDY     PAYMENTS        (COST)
YEAR                                             (10/1/11)     Avg = 1.75%                        (4/1)      Avg = 4.25%                (10/1/11)   Avg = 1.75%                      (4/1)            (4/1)         Avg = 5.30%    Net Avg = 0.00%

                                                                                                                                                                                                   Estimated
                                                                                                                                                                                                  Annual "set-
2010         $183,664            $192,124                                                                                                                                                            aside"                                              $192,124
2011         $286,233 (a)        $192,124         $4,260,000         $18,638    $4,278,638        $170,000      $100,786     $270,786   $1,000,000        $4,375   $1,004,375                     Sinking Fund             $35,333                       $498,243     ($89,979)
2012         $291,958            $107,200                                                         $225,000      $149,284     $374,284                                                                                      $53,000       ($35,333)       $499,151     ($82,326)
2013         $297,797            $107,200                                                         $245,000      $145,856     $390,856                                                                                      $53,000       ($53,000)       $498,056     ($93,059)
2014         $303,753                  $0                                                         $360,000      $140,415     $500,415                                                                                      $53,000       ($53,000)       $500,415    ($196,662)
2015         $309,828            $100,000              Assumes Principal Refunded by              $265,000      $134,080     $399,080        Assumes Principal Refunded by                                                 $53,000       ($53,000)       $499,080     ($89,252)
2016         $316,024            $100,000         Taxable G.O. Refunding Bonds on 3/15/11         $270,000      $127,723     $397,723   Taxable G.O. Refunding Bonds on 3/15/11                                            $53,000       ($53,000)       $497,723     ($81,698)
2017         $322,345            $140,000                                                         $240,000      $120,620     $360,620                                                                                      $53,000       ($53,000)       $500,620     ($38,275)
2018         $328,792            $370,000                Assumes Interest Paid by                  $15,000      $116,713     $131,713          Assumes Interest Paid by                                                    $53,000       ($53,000)       $501,713     $197,079
2019         $335,368            $367,000             Remaining 2011 Fiscal Year Levy              $15,000      $116,176     $131,176       Remaining 2011 Fiscal Year Levy                                                $53,000       ($53,000)       $498,176     $204,191
2020         $342,075                                                                             $390,000      $107,990     $497,990                                                                                      $53,000       ($53,000)       $497,990    ($155,915)
2021         $348,916                                                                             $390,000       $91,805     $481,805                                                                                      $53,000       ($53,000)       $481,805    ($132,889)
2022         $355,895                                                                             $410,000       $74,395     $484,395                                                                                      $53,000       ($53,000)       $484,395    ($128,500)
2023         $363,013                                                                             $425,000       $55,391     $480,391                                                                                      $53,000       ($53,000)       $480,391    ($117,379)
2024         $370,273                                                                             $450,000       $34,485     $484,485                                                                                      $53,000       ($53,000)       $484,485    ($114,212)
2025         $377,678                                                                             $460,000       $11,730     $471,730                                                                  $10,000             $53,000       ($53,000)       $481,730     ($94,052)
2026         $385,232                                                                                                                                                                                 $480,000             $53,000       ($53,000)       $480,000     $385,232
2027         $392,937                                                                                                                                                               $1,000,000        $510,000             $26,500       ($53,000)       $483,500     $392,937
2028         $400,795                                                                                                                                                                                                                    ($26,500)       ($26,500)    $400,795
2029         $408,811                                                                                                                                                                                                                                                 $408,811
2030         $144,073                                                                                                                                                                                                                                                 $144,073

           $6,865,458          $1,675,648         $4,260,000         $18,638      $4,278,638    $4,330,000    $1,527,448   $5,857,448   $1,000,000        $4,375    $1,004,375      $1,000,000      $1,000,000            $856,833      ($856,833)     $8,533,096     $718,921



                            (1) Interest on Taxable NANs assumed to be paid with 2011 fiscal year levy.




(a) District will make all liability payments through                                                       Savings Summary
11/30/10, remaining 10-11 estimated fiscal year levy                           Gross savings after 40-year amort period………………………………     $718,921
will be used to pay 2011 calendar year debt service payments.                  Liability balance remaining 1/1/30…………………………………………… $4,466,954
                                                                               Total Gross Savings… … … … … … … … … … … … … … … … … …$5,185,875




                          Michel D. Clark
                          414-765-7326
                          mdclark@rwbaird.com                                                                                                                                                                                                             Page 6
Germantown School District
Refinancing of WRS Liability and QSCB Issuance
November 22, 2010



VII.    Timing
        Baird Presents Refinancing options to District ................................................................................................ November 8, 2010
        Document preparation, Bond Rating Call with District/Baird/Rating Agency ................................... November/December 2010
        Issue BAN for QSCB and NAN for WRS ...........................................................................................December 2010/January2011
        Work With District to Determine Final Long Term Structures ................................................................. January/February 2011
        Issue Long Term Debt ................................................................................................................................................ March, 2011




       Michel D. Clark
       414-765-7326
       mdclark@rwbaird.com                                                                                                                                                     Page 7
Germantown School District
Refinancing of WRS Liability and QSCB Issuance
November 22, 2010



                                                                                G.O. Municipal Interest Rates
              14.00%                                                                Bond Buyer-20 Index
              13.00%
                                                                                  January 1970 to Present

              12.00%


              11.00%


              10.00%


               9.00%


               8.00%
                                                                                                                                                                                         Average: 6.45%
               7.00%


               6.00%


               5.00%


               4.00%
                            Current Rate as of 10/28/2010: 3.96%
               3.00%
                       Jan-70

                                Jan-72

                                         Jan-74

                                                  Jan-76

                                                           Jan-78

                                                                    Jan-80

                                                                             Jan-82

                                                                                      Jan-84

                                                                                               Jan-86

                                                                                                        Jan-88

                                                                                                                 Jan-90

                                                                                                                          Jan-92

                                                                                                                                   Jan-94

                                                                                                                                            Jan-96

                                                                                                                                                     Jan-98

                                                                                                                                                              Jan-00

                                                                                                                                                                       Jan-02

                                                                                                                                                                                Jan-04

                                                                                                                                                                                          Jan-06

                                                                                                                                                                                                   Jan-08

                                                                                                                                                                                                            Jan-10
           Source: The Bond Buyer




    Michel D. Clark
    414-765-7326
    mdclark@rwbaird.com                                                                                                                                                                                              Page 8

								
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