colorado educational and cultural facilities …highlands ranch, co 80129 . science technology...

COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY BUSINESS MEETING OF THE BOARD OF DIRECTORS

1800 Glenarm Place, Suite 1201 Denver, CO 80202

https://zoom.us/j/4271135796

1 646 558 8656 Meeting ID: 427 113 5796

October 23, 2019

BUSINESS MEETING AGENDA

12:30 P.M.

1. STEM School Resolution 19-15

2. Consent Agenda

• Approval of Minutes of September 25 and 26, 2019 Meetings • Review Draft September 2019 Financials • CECFA Pricing Report

3. Executive Director Report

4. Comments from the Board

https://zoom.us/j/4271135796

Prepared by PFM Financial Advisors LLC Page 1

COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY

PROJECT SUMMARY – Science Technology Engineering and Math School

Est. Amount $11,713,163

Borrower STEM School Highlands Ranch

Type Charter School Program N/A Multi-State No Prior CECFA Loans Series 2016, Series 2014 Refunding $2,650,000 Reissuance No New Money $9,063,163 Credit Enhancement No Ratings BB+ Underwriter TBD Bond Counsel Kline Alvarado Veio, P.C.

DESCRIPTION OF BORROWER: Name: STEM School Highlands Ranch Current Location: 8773 S. Ridgeline Blvd

Highlands Ranch, CO 80129 Science Technology Engineering and Math (STEM) School (“STEM” or the “School”) is a public charter school and Colorado nonprofit in Douglas County. The School initially opened in 2011-12 with an enrollment of approximately 477 students in grades 6 through 9. Currently, STEM School has served approximately 1,800 students in K through 12th grade. The mission of STEM School is to engage all students in an academically rigorous core curriculum with a strong foundation in the sciences, technologies, engineering and math. The content is relevant to real-world contexts, is project-based, builds on the themes of respect, high standards and character development, and integrates a wide range of community and business assets to prepare students for successful post-secondary endeavors. STEM envisions a world of exponential possibilities where every child develops the innate knowledge, skills, creativity and character to thrive, lead, and succeed in an ever-changing future. Charter: STEM School’s charter is authorized through Douglas County School District Re. 1 and it has been renewed two times – in 2014 and most recently in 2019. The current charter is set to expire on June 30, 2024 and was granted for the maximum term.


Enrollment:

2015-16 2016-17 2017-2018 2018-2019 2019-2020 Pre-K - - - 65 69 Grade K 151 129 131 153 168 Grade 1 163 161 145 128 150 Grade 2 135 161 154 139 163 Grade 3 133 135 160 144 158 Grade 4 107 134 134 133 157 Grade 5 100 109 127 128 138 Grade 6 128 106 113 128 143 Grade 7 108 119 96 95 111 Grade 8 61 91 107 75 89

Total 1,498 1,614 1,613 1,648 1,844


FINANCIAL POSITION AND STATEMENT OF ACTIVITIES HIGHLIGHTS FOR RMCA: Trend in financial position over three-year period: Total assets have increased over the FY 2016-2018 period due to increases in cash and investments. Liabilities have increased slightly due to an increase in accrued liabilities and accrued salaries and benefits, but accounts payables have also decreased. Local funding makes up a majority of the School’s revenues.

o Trend in revenues: Revenues have increased steadily from both state and local sources. o Trend in expenses: Expenses have increased due to increase in instruction and

supporting service expenses. For FY 2018, the School’s general fund reported an ending fund balance surplus of $3,802,494.

• From FY 2016 to FY 2018, net position has decreased due to increased net pension liability and OPEB.


STEM School and Academy Balance Sheet

For the Year Ending June 30, 2018

2018 2017 2016 Assets

Cash and Investments $4,671,862 $3,682,972 $2,618,905 Receivables - 16,850 - Interfund Receivable - - 675,063 Prepaid Expenses - 15,350 66,667

Total Assets $4,671,862 $3,715,172 $3,360,635 Liabilities Accounts Payable $134,357 $219,415 $158,578 Accrued Liabilities 245,935 - -

Accrued Salaries and Benefits 489,076 616,685 459,476 Total Liabilities $869,368 $836,100 $618,054 Fund Balance

Nonspendable Prepaid Expenditure - 15,350 66,667 Restricted for Emergencies 460,000 395,000 395,000 Unrestricted, Unassigned 3,342,494 2,468,722 2,280,914

Total Fund Balance $3,802,494 $2,879,072 $2,742,581

Total Liabilities and Fund Balance $4,671,862 $3,715,172 $3,360,635 Net Investment in Capital Assets(1) $900,653 $292,954 $28,398 Net Pension Liability(2) (46,760,676) (35,359,823) (13,232,559) Net OPEB(2) (1,067,816) - - Deferred outflows of resources(2) Pension Outflows 21,462,981 18,202,088 4,014,072 OPEB Outflows 203,738 - - Deferred inflows of Resources(2) Pension Inflows (1,912,105) (116,350) (187,446) OPEB Inflows (17,865) - - Total Net Position of Governmental Activities ($23,388,596) ($14,102,059) ($6,634,954)

(1) Capital assets used in governmental activities are not financial resources and, therefore, are not

reported in governmental funds. (2) Long-term liabilities and related items, including net pension liability, deferred outflow of resources,

and deferred inflows of resources, are not due and payable in the current year and, therefore, are not reported in governmental funds.


STEM School and Academy Statement of Revenues, Expenditures, and Changes in Fund Balances

For the Year Ending June 30, 2018 2018 2017 2016

Revenue Local Sources $14,798,084 $12,584,383 $10,356,158 State Sources 520,344 445,935 337,054

Total Revenue 15,318,428 13,030,318 10,693,212 Expenditures

Instruction 7,466,502 6,697,805 4,806,898 Supporting Services 6,926,504 6,131,022 6,256,068

Total Expenditures $14,393,006 $12,828,827 $11,062,966 Excess (deficiency) of revenues over expenditures 925,422 201,491 (369,754) Total other financing sources (uses) (2,000) (65,000) 809,103 Fund Balances - Beginning of Year 2,879,072 2,742,581 2,303,232 Fund Balances - End of Year $3,802,494 $2,879,072 $2,742,581 Excess depreciation in capital assets(1) 607,699 264,556 14,396 Pension Expense(2) (9,935,715) (7,868,152) (1,474,146) OPEB Expense(2) (48,969) - - Change in Net Position of Governmental Activities ($8,453,563) ($7,467,105) ($1,020,401)

(1) Governmental funds report capital outlays as expenditures. However, in the statement of activities

the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay $21,500 exceeded depreciation expense ($7,104) in the current year.

(2) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This amount represents the change in the net pension liability, pension related deferred outflows of resources, and pension-related deferred inflows of resources in the current year.


DESCRIPTION OF THE FINANCING REQUEST: New Money Portion – In 2015, the School entered into a lease with a third party to add another 62,000 sq. ft. (the “Barrons Building”) adjacent to the original building with a lease purchase option. The School is using the new money portion of this financing to acquire the building that it is leasing. No new construction is involved. Refunding Portion – In 2016, the School completed a $3,000,000 taxable loan to finance tenant improvements to the Barrons Building. The purpose of the refunding is to restructure the 2016 loan to fix out the 2021 balloon payment and achieve a more level debt service structure. The financing structure of the proposed borrowing wraps around the series 2014 Bonds. These bonds will have an amortization of 35 years with the interest rate fixed throughout the entire life of the bonds.

Sources: Bond Proceeds $11,713,163 Total Sources $11,713,163 Uses: Project Fund 7,597,523 Refunding 2,650,000 Cost of Issuance 515,216 Debt Service Reserve Fund 950,424 Total Uses $11,713,163

Manner of Sale: Public

Closing Date: 10/30/2019 Interest Rate: 4.0% – 5.0% Annual Average Debt Service as % of Operating Revenues 8.40% Annual Average Debt Service as % of Operating Expenditures 10.30% % of Costs of Issuance against Par 4.50%


WORKING GROUP:

Borrower: STEM School Highlands Ranch Dr. Penny Eucker, Star Ake, Nicole Smith, Roy Martinez

General Counsel: Arrington Law Firm

Barry Arrington

Bond Counsel: Kline Alvarado Veio, P.C. K.C. Veio, Jackie Morrison, Cameron Hollingshead

Financial Advisor: Choice Advisors

Matt O’Meara Bank: TBD

Bank Counsel: TBD

Trustee: UMB Bank Casey Gunning, John Wahl

STATUTORY REQUIREMENTS: STEM School is a qualified borrower and the financing of the proposed bonds is permitted under the Act. OUTSTANDING ISSUES TO BE NEGOTIATED:

• Completion of bond and financing documents • Approval of financing resolution by CECFA

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RESOLUTION NO. 19-15 October 2019

SCIENCE TECHNOLOGY ENGINEERING AND MATCH SCHOOL

A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL REVENUE BONDS (SCIENCE TECHNOLOGY ENGINEERING AND MATH (STEM) SCHOOL PROJECT), SERIES 2019 TO FINANCE THE COSTS OF THE ACQUISITION OF CERTAIN EDUCATIONAL FACILITIES, REFUND CERTAIN SERIES 2016 BONDS, FUND A BOND RESERVE FUND, FUND CAPITALIZED INTEREST, AND PAY THE COSTS OF ISSUANCE OF THE SERIES 2019 BONDS; AUTHORIZING THE EXECUTION AND DELIVERY BY THE AUTHORITY OF A SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT, A SECOND SUPPLEMENTAL INDENTURE OF TRUST, A BOND PURCHASE AGREEMENT, A TAX REGULATORY AGREEMENT, CLOSING DOCUMENTS, AND SERIES 2019 BONDS IN CONNECTION THEREWITH; AUTHORIZING THE USE OF AN OFFICIAL STATEMENT RELATING TO SUCH SERIES 2019 BONDS; AND MAKING DETERMINATIONS AND FINDINGS AS TO OTHER MATTERS RELATED TO SUCH FINANCING; AND REPEALING ANY ACTION HERETOFORE TAKEN IN CONFLICT HEREWITH.

WHEREAS, the Colorado Educational and Cultural Facilities Authority (the “Authority”) is authorized by Article 15, Title 23 of Colorado Revised Statutes, as amended (the “Act”) and Article 57, Title 11, Section 201 et seq. of Colorado Revised Statutes, as amended (the “Supplemental Public Securities Act”), to make mortgage or other secured or unsecured loans to educational institutions operating in, or otherwise benefiting, the State of Colorado (the “State”), and to issue revenue bonds for the purpose of financing the costs of the acquisition, construction, reconstruction, repair, alteration, equipment, enlargement, improvement and extension of facilities required or useful for the operation of an educational institution and the refunding or refinancing of any outstanding obligations incurred to finance such facilities; and

WHEREAS, Lighthouse Building Corp. (the “Corporation”), a Colorado nonprofit corporation, was formed to assist Science Technology Engineering and Math (STEM) School (the “Charter School”), a charter school chartered through Douglas County School District Re. 1, Douglas County, Colorado (the “District”), pursuant to Sections 22-30.5-101, et seq., Colorado Revised Statutes, as amended, in providing facilities, equipment and other related support; and

WHEREAS, pursuant to and in accordance with the Act and the Supplemental Public Securities Act, the Authority made a loan to the Corporation, pursuant to a Loan and Security Agreement, dated as of November 1, 2014 (the “Original Loan Agreement”), by and between the Authority and the Corporation, for the purpose, among other things, of refunding certain outstanding

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bonds of the Authority (the “Original Project”), the net proceeds of which were used to finance the acquisition and construction of existing facilities used by the Charter School (the “Original Facilities”), and to fund such loan made pursuant to the Original Loan Agreement, the Authority issued its Colorado Educational and Cultural Facilities Authority Charter School Refunding Revenue Bonds (Science Technology Engineering and Math (STEM) School Project), Series 2014, in the aggregate principal amount of $14,670,000 pursuant to an Indenture of Trust, dated as of November 1, 2014 (the “Original Indenture”), by and between the Authority and UMB Bank, National Association, as trustee thereunder (the “Trustee”); and

WHEREAS, pursuant to and in accordance with the Act and the Supplemental Public Securities Act, the Authority made a second loan to the Corporation, pursuant to a First Amendment to Loan and Security Agreement, dated as of May 1, 2016 (the “First Amendment to Loan Agreement”), by and between the Authority and the Corporation, for the purpose, among other things, of financing certain renovations, improvements and equipment relating to the educational facilities located at 8878 Barrons Boulevard, Highlands Ranch, Colorado (the “2016 Improvements”), and to fund such loan the Authority issued its Colorado Educational and Cultural Facilities Authority Charter School Taxable Revenue Bonds (Science Technology Engineering and Math (STEM) School Project), Series 2016 (the “2016 Bonds”), in the aggregate principal amount of $3,000,000 pursuant to a First Supplemental Indenture of Trust, dated as of May 1, 2016 (the “First Supplemental Indenture”), by and between the Authority and the Trustee; and

WHEREAS, the Original Facilities, as improved by the 2016 Improvements were leased by the Corporation to the Charter School pursuant to the terms and provisions of a Lease Agreement, dated as of November 1, 2014 (the “Original Lease”), between the Corporation and the Charter School, as amended by a First Amendment to Lease Agreement, dated as of May 1, 2016 (the “First Amendment to Lease”); and

WHEREAS, Representatives of the Corporation are requesting the Authority issue additional bonds under the Original Agreement and the Original Indenture and loan the proceeds thereof to the Corporation in order to (i) refinance the Series 2016 Bonds, (ii) acquire the land and building located at 8878 Barrons Boulevard, Highlands Ranch, Colorado 80129 currently being leased by the Corporation for educational purposes (the “2019 Acquisition” and, together with the Original Facilities, the “Facilities”), (iii) fund a debt service reserve fund, if any, (iv) pay capitalized interest, if any, on the Series 2019 Bonds, and (v) pay costs of issuance (collectively, the “Series 2019 Project”); and

WHEREAS, pursuant to and in accordance with the Act and the Supplemental Public Securities Act, the Authority proposes to make a loan to the Corporation, pursuant to a Second Amendment to Loan and Security Agreement (the “Second Amendment to Loan Agreement”), by and between the Authority and the Corporation, for the Series 2019 Project, and to fund such loan the Authority has agreed to issue its Colorado Educational and Cultural Facilities Authority Charter School Refunding Revenue Bonds (Science Technology Engineering and Math (STEM) School Project), Series 2019 (the “Series 2019 Bonds”) in the aggregate principal amount not to exceed $20,000,000.00; and

WHEREAS, it is proposed that certain amendments to the Original Indenture be completed in accordance with the provisions of a Second Supplemental Indenture of Trust (the “Second

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Supplemental Indenture” and, together with the Original Indenture as supplemented by the First Supplemental Indenture, the “Supplemented Indenture”), by and between the Authority and the Trustee; and

WHEREAS, it is proposed that the Original Lease be amended in accordance with a Second Amendment to Lease Agreement, by and between the Corporation and the Charter School (the “Second Amendment to Lease” and, together with the Original Lease as amended by the First Amendment to Lease, the “Amended Lease”) to reflect the 2019 Acquisition; and

WHEREAS, no mortgage loan, other secured or unsecured loan, or financing, refinancing, refunding or other financial obligation incurred in connection with the issuance of the Series 2019 Bonds will obligate, either directly or indirectly, the Authority or the District; and

WHEREAS, pursuant to and in accordance with Sections 22-30.5-406 Colorado Revised Statutes, as amended, the Charter School is authorized to utilize the State Treasurer intercept program, and the Authority, the Corporation and the Trustee have agreed to take all permissible actions necessary to assist the Authority in utilizing such program; and

WHEREAS, the issuance of the Series 2019 Bonds by the Authority for the Series 2019 Project will enable or assist the Corporation and the Charter School to fulfill their obligations to provide educational facilities; and

WHEREAS, there have been presented to the Authority and made available to the Board of Directors of the Authority: (a) the proposed form of the Second Amendment to Loan Agreement; (b) the proposed form of the Second Supplemental Indenture; (c) the proposed form of the Second Amendment to Lease relating to the Series 2019 Bonds; (d) the proposed form of the Tax Regulatory Agreement (the “Tax Regulatory Agreement”), by and among the Authority, the Corporation, and the Charter School; (e) the form of the Bond Purchase Agreement by and among the Authority, B.C. Ziegler and Company (the “Underwriter”), the Corporation and the Charter School (the “Bond Purchase Agreement”); and (f) the proposed form of the Preliminary Official Statement (the “Preliminary Official Statement”) relating to the Series 2019 Bonds.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY:

Section 1. All action (not inconsistent with the provisions of this resolution) heretofore taken by the Board of Directors of the Authority and the officers, employees, and agents of the Authority directed toward the financing of the Series 2019 Project and the issuance and sale of the Series 2019 Bonds therefor be, and the same is hereby, ratified, approved and confirmed.

Section 2. The Authority shall finance the Series 2019 Project by loaning the proceeds of the Series 2019 Bonds to the Corporation in accordance with the provisions of the Amended Loan Agreement. The Authority hereby finds and determines that the amount of such loan does not exceed the estimated total cost of the Series 2019 Project as represented by the Corporation to the Authority in the Amended Loan Agreement, which total cost is hereby approved.

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Section 3. The Authority hereby finds and determines that the issuance of the Series 2019 Bonds by the Authority for the Series 2019 Project will enable or assist the Corporation and the Charter School to fulfill their obligation to provide educational facilities.

Section 4. Section 11-57-204 of the Supplemental Public Securities Act provides that a public entity, including the Authority, may elect in an act of issuance to apply all or any of the provisions of the Supplemental Act. The Board of Directors of the Authority hereby elects to apply all of the applicable provisions of the Supplemental Public Securities Act to the Series 2019 Bonds. Pursuant to Section 11-57-210 of the Supplemental Public Securities Act, the Series 2019 Bonds shall contain a recital that they are issued pursuant to the Supplemental Public Securities Act. Such recital shall be conclusive evidence of the validity and the regularity of the issuance of the Series 2019 Bonds after their delivery for value.

Section 5. To defray the cost of the Series 2019 Project, there is hereby authorized and created an issue of revenue bonds designated “Colorado Educational and Cultural Facilities Authority Charter School Revenue Bonds (Science Technology Engineering and Math (STEM) School Project), Series 2019” (with any change to the name of such bonds as may be acceptable to the Chair, the Vice Chair, any Assistant Vice Chair or the Executive Director of the Authority and its counsel) in the aggregate principal amount not to exceed $20,000,000.00.

The Series 2019 Bonds shall be payable, shall be dated, shall bear interest at the rates per annum, shall mature, shall be subject to optional and mandatory redemption prior to maturity, and shall be in substantially the form provided in the Second Supplemental Indenture. The Series 2019 Bonds will be issued by the Authority as fully registered bonds in initial denominations as follows: (i) if the Series 2019 Bonds shall be rated in one of the three highest categories of ratings by Moody’s Investors Services Inc. (“Moody’s”) or S&P Global Ratings (“S&P”), $5,000 and any integral multiple of $5,000 in excess thereof, or (ii) if the Series 2019 Bonds are not rated in one of the three highest categories of ratings by Moody’s or S&P, $500,000 and integral multiples of $5,000 in excess thereof. The authorized denominations, manner of sale and transfer provisions of the Series 2019 Bonds shall be as set forth in the Second Supplemental Indenture. The interest rate on the Series 2019 Bonds shall be a fixed rate and shall not exceed a maximum true interest cost of 8% per annum and the final maturity of the Series 2019 Bonds shall not be later than November 1, 2060. The Series 2019 Bonds shall be sold to the Underwriter pursuant to the Bond Purchase Agreement. The Board of Directors of the Authority hereby delegates to the Chair, the Vice Chair, any Assistant Vice Chair or the Executive Director of the Authority the authority to make the final determinations relating to the Series 2019 Bonds, as provided in the Supplemental Public Securities Act, subject to the parameters set forth above.

Section 6. The forms, terms and provisions of the Second Amendment to Loan Agreement, the Second Supplemental Indenture, the Bond Purchase Agreement and the Tax Regulatory Agreement (the “Authority Documents”) be and they hereby are approved, and the Authority shall enter into the Authority Documents in the form of each of such document presented to the Board of Directors of the Authority at this meeting, with only such changes therein as are not inconsistent herewith; and the Executive Director, the Chair, the Vice Chair and any Assistant Vice Chair of the Authority (each, an “Authorized Officer”) are each hereby authorized to execute and deliver the Authority Documents, and such Authorized Officers are each hereby authorized to affix the Authority seal to and to attest the Authority Documents.

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Section 7. The form, terms and provisions of the Series 2019 Bonds, in the form contained in the Second Supplemental Indenture, be and they hereby are approved, with only such changes therein as are not inconsistent herewith, and the Authorized Officers are each hereby authorized to execute the Series 2019 Bonds, by manual or facsimile signature, and each is authorized to deliver the Series 2019 Bonds, and the seal or a facsimile of the seal of the Authority is hereby authorized to be affixed to the Series 2019 Bonds.

Section 8. The Authorized Officers are hereby authorized to execute and deliver to the Trustee the written order of the Authority for the authentication and delivery of the Series 2019 Bonds by the Trustee, in accordance with the Second Supplemental Indenture.

Section 9. The Authority hereby acknowledges the use of the Preliminary Official Statement in connection with the offering of the Series 2019 Bonds. The Authority hereby acknowledges the use and distribution by the Underwriter of a final Official Statement, substantially in the form of the Preliminary Official Statement with such changes as are necessary or appropriate, in connection with the offering of the Series 2019 Bonds.

Section 10. The Authority intends to and shall take all permissible actions required of it to utilize the provisions contained in Sections 22-30.5-406, Colorado Revised Statutes, as amended.

Section 11. In consideration of the purchase and acceptance of the Series 2019 Bonds by those who shall hold the same from time to time, the provisions of this resolution shall be part of the contract of the Authority with each registered owner of the Series 2019 Bonds and shall be deemed to be and shall constitute a contract between the Authority and each registered owner from time to time of the Series 2019 Bonds.

Section 12. By the enactment of Section 23-15-124 of the Act, the State has pledged to and agreed with the holders of any bonds, notes and other obligations issued under the Act, and with those parties who may enter into contracts with the Authority pursuant to the provisions of the Act, that the State will not limit, alter, restrict or impair the rights vested in the Authority to acquire, construct, reconstruct, maintain and operate any facility as defined in the Act or to establish, revise, charge and collect rates, rents, fees and other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of maintenance and operation thereof and to fulfill the terms of any agreements made with the holders of bonds, notes or other obligations authorized and issued pursuant to the Act, and with the parties who may enter into contracts with the Authority pursuant to the Act, and will not in any way impair the rights or remedies of the holders of such bonds, notes or other obligations of such parties until such bonds, notes or other obligations, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged and such contracts are fully performed on the part of the Authority. Nothing in the Act precludes such limitation or alteration if and when adequate provision is made by law for the protection of the holders of such bonds, notes or other obligations of the Authority or those entering into such contracts with the Authority.

Section 13. The members of the Board of Directors and the officers, employees and agents of the Authority shall take all action necessary or reasonably required by the Authority Documents to effectuate their provisions and shall take all action necessary or desirable in conformity with the Act

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to finance the Series 2019 Project and for carrying out the transactions contemplated by this resolution, including, without limitation, the execution and delivery of any closing documents to be delivered in connection with the sale and delivery of the Series 2019 Bonds.

Section 14. The cost of financing the Series 2019 Project will be paid out of the proceeds of the Series 2019 Bonds and/or funds of the Corporation. No costs or expenses shall be borne by the Authority in connection with the issuance of the Series 2019 Bonds, the preparation of any documents relating thereto, or any legal or financial consultants retained in connection therewith. The Series 2019 Bonds shall not constitute or become an indebtedness, a debt or a liability or a charge against the general credit or taxing power of the State, the General Assembly of the State, or of any county, city, city and county, town, school district, or other subdivision of the State or of any other political subdivision or body corporate and politic within the State other than the Authority (but only to the extent of the revenues pledged in the Second Amendment to Loan Agreement and the Second Supplemental Indenture), and neither the State, the General Assembly of the State, nor any county, city, city and county, town, school district or other subdivision of the State, except the Authority, to the extent provided above, shall be liable thereon; nor shall the Series 2019 Bonds constitute the giving, pledging or loaning of the faith and credit of the State, the General Assembly of the State or of any county, city, city and county, town, school district, or other subdivision of the State or of any other political subdivision or body corporate and politic within the State; but the Series 2019 Bonds shall be payable solely from the funds pledged therefor. The issuance of the Series 2019 Bonds shall not, directly or indirectly or contingently, obligate the State or any subdivision of the State, nor empower the Authority to levy or collect any form of taxes or assessments therefor or to create any indebtedness payable out of taxes or assessments therefor or make any appropriation for payment of the Series 2019 Bonds, and such appropriation or levy is prohibited. Nothing in the Act shall be construed to authorize the Authority to create a debt of the State within the meaning of the Constitution or statutes of the State or to authorize the Authority to levy or collect taxes or assessments. Neither the members of the Board of Directors of the Authority nor any person executing the Series 2019 Bonds shall be liable personally on the Series 2019 Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. The State shall not in any event be liable for the payment of the principal of, premium, if any, or interest on the Series 2019 Bonds or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever undertaken by the Authority. No breach of any such pledge, mortgage, obligation or agreement shall impose any pecuniary liability upon the State or any charge upon its general credit or against its taxing power.

Section 15. After any of the Series 2019 Bonds are issued, this resolution shall be and remain irrepealable until the Series 2019 Bonds and the interest thereon shall have been fully paid, cancelled and discharged.

Section 16. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this resolution.

Section 17. All bylaws, orders and resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as reviving any bylaw, order or resolution or part thereof.

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Section 18. This resolution shall be in full force and effect upon its passage and approval.

PASSED, ADOPTED AND APPROVED this 23rd day of October, 2019.


By Title:

[SEAL] Attest:

Title: [Signature page to Financing Resolution – Science Technology Engineering and Math (STEM)

School]

COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY Board of Directors

Regular Meeting of the Board of Directors September 25, 2019

Board Members Present Margaret Henry Amanda Mountain** Bill Pound Sam Todd Andy Vick Marianne Virgili Dan Wilson Others Present Mark Heller, Executive Director, CECFA Marlo Stauss, Administrative Assistant, CECFA Calvin Hanson, Sherman & Howard, General Counsel to CECFA Cory Kalanick, Sherman & Howard, General Counsel to CECFA Michael Berwanger, PFM Financial Advisors, Financial Advisor to CECFA Grace Wang, PFM Financial Advisors, Financial Advisor to CECFA K.C Veio*, Kline Alvarado Veio, P.C. Matt O’Meara*, Choice Advisors Penny Eucker*, STEM School Highlands Ranch ________________________________________________________ *by telephone ** arrived at 1 P.M. On Wednesday, September 25, 2019, the Board of Directors of the Colorado Educational and Cultural Facilities Authority (“CECFA”) held a regular meeting at Hotel Boulderado, 2115 13th Street, Boulder, Colorado. Dan Wilson, Chairman of the Board, called the meeting to order at approximately 12:30 p.m. Agenda Item 1. STEM School Highlands Ranch Ms. Eucker said that STEM School began as a middle and high school. A few years ago it applied for an elementary school. Its charter authorizer, Douglas County School District, required it to have a new building for that purpose. STEM signed a lease/purchase agreement on a building contiguous to its middle and high school. The first option term is coming up and STEM is requesting this financing so that it may exercise the option to purchase the building. The elementary school is currently operational, with approximately 600 students. It has a large waitlist for Kindergarten through Grade 8. Approximately 500 students are enrolled in high school. The school’s SAT scores are the 8th highest in the state and the highest in Douglas County by a significant margin. Ninety-four percent of its graduates go on to four-year colleges.

Following this transaction, STEM School will own its entire campus. Ms. Eucker stated that the school is under one charter contract and recently received a five-year renewal, the maximum allowable, from its authorizer. The Colorado Department of Education notified STEM that, given the school’s waitlist, high test scores, and financial strength, it would be a likely recipient of a block grant from the federal government to replicate high-quality charter schools. Award of the grant will be announced in January. Mr. Veio stated that in addition to acquiring the facility the school has been leasing for use as an elementary school, STEM will also refund a series of taxable bonds issued by CECFA on behalf of the school in 2016. Those bonds were a direct placement with a bank. Mr. O’Meara said that the debt service on the bond financing will be lower than the school’s lease payment. Responses to an RFP for underwriters are expected on Friday. The school will seek a credit rating, and Moody’s site visit is scheduled for October 10. The financing structure contemplated is a 35-year fixed-rate financing. If the school’s credit rating is maintained at a BB or Ba category, Mr. O’Meara expects that the current rating of the school could be upgraded. The school has not determined if it would seek moral obligation enhancement if it receives an investment grade rating. Mr. Heller offered his assistance if the school experiences hurdles in pursuing moral obligation financing. Mr. Berwanger said that the school would achieve level debt service through the financing and save money over making payments on the lease. Interest rates are in the 4s. Mr. Hanson said that given the low market rates, the Board would meet as needed to avoid the school losing any advantage in the marketplace. Agenda Item 2. Consent Agenda Chairman Wilson stated that the consent agenda covers approval of the minutes from the July 24, 2019 and August 28, 2019 meetings of the Board, the August 2019 financials, and the CECFA activity and pricing report from FY'18/19. Mr. Todd moved, and Mr. Pound seconded, the adoption of the consent agenda. The motion was passed unanimously. Agenda Item 3. Executive Director Report Mr. Heller reported that he met with the search group for the National Medal of Honor Museum last week. Their board has not determined whether they will build in Denver or in Arlington, Texas. Either site would be given free of cost to the museum. Fred Marienthal and Mr. Heller met with representatives of National Public Media, and they will work with CECFA on creating a national bond program similar to the National Jewish Federation Bond Program.

Mr. Heller met with representatives of The Arts Center at Willits in Basalt, Colorado, which has a real estate transfer tax specifically allocated to its projects. Mr. Heller discussed the D&O insurance carried by the Authority. The insurance broker inquired of 38 different companies before finding one that would underwrite the Authority. The coverage is the same as before, at a slightly lower cost. Ms. Henry inquired as to the insurance company’s admission to the State Division of Insurance, and Mr. Heller will confirm its status and report back to the Board. The next conference of NAHEFFA will be held in Charleston, South Carolina in April or May 2020, and Mr. Heller asked Board members to let him know if they have an interest in attending. Agenda Item 4. Discussion regarding multi-state charter financings and national issuers Ms. Hogan, Mr. Kalanick, and Mr. Heller met with Dave Young, State Treasurer, and Eric Rothaus, Deputy State Treasurer, after Mr. Rothaus called to inquire about the unusually high number of Intercept Agreements for charter schools being financed out of state. As there was no further business to be brought before the Board, the meeting was adjourned at 1:20 p.m.

_________________________________ Dan Wilson, Chairman _________________________________ Mark Heller, Executive Director

COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY Board of Directors

Special Meeting of the Board of Directors September 26, 2019

Board Members Present Margaret Henry Bill Pound Sam Todd Marianne Virgili Dan Wilson Absent and Excused Amanda Mountain Andy Vick Others Present Mark Heller, Executive Director, CECFA Marlo Stauss, Administrative Assistant, CECFA Calvin Hanson, Sherman & Howard, General Counsel to CECFA Cory Kalanick, Sherman & Howard, General Counsel to CECFA ________________________________________________________ On Thursday, September 26, 2019, the Board of Directors of the Colorado Educational and Cultural Facilities Authority (“CECFA”) held a special meeting at the Hotel Boulderado, 2115 13th Street, Boulder, Colorado. Dan Wilson, Chairman of the Board, called the meeting to order at approximately 10:00 a.m. Agenda Item 1. Presentation by Bill Pound on the Life and Times of Bill Pound Mr. Pound has been with the National Conference of State Legislatures since it was formed in 1975. He discussed its beginnings and the changes it has gone through to the present. Agenda Item 2. Discussion regarding in-person versus teleconference CECFA meetings Mr. Heller asked for feedback from the Board on in-person and teleconference meetings. One suggestion was to schedule in-person meetings quarterly and call-in meetings the remainder of the time. If that were to begin right away, the October meeting could be by phone, and the joint November-December meeting could be in person, paired with the holiday party. The annual retreat would be held in person in September. If the Board would like to continue holding a meeting in the summer that coincides with a Rockies home game, that meeting could be held in person. Ms. Henry expressed a preference for face-to-face meetings, especially as it is useful in helping new Board members acclimate. She also appreciates hearing firsthand from borrowers about their institution.

Mr. Pound agreed, and added that when too much time passes without meeting in person, cohesion, interest, and commitment of the members are sometimes weakened. Chairman Wilson agreed and suggested that better technology is needed for teleconferencing when meetings are not held in person. The process for Go To Meeting was cumbersome. Mr. Heller suggested Zoom as an alternative. Mr. Pound said that his experience with teleconferencing systems in general has been that they prove to be unreliable. Mr. Hanson noted that regardless of how the meeting is scheduled to occur, Board members and other interested parties are always welcome to attend the meeting in person at the meeting place. Ms. Virgili stated that there are times in the winter when travel from the Western Slope is challenging and may involve an extra day or two when the weather is bad. At those times, teleconferencing would provide a good option. Ms. Henry suggested that Mr. Heller make the decision based on the upcoming agenda but in any case, provide a way to call in. Mr. Todd agreed, and added that at the quarterly in-person meetings, in addition to reviewing and approving any transactions, a speaker could be scheduled to present something relevant and informative to the Board. Ms. Henry suggested that the structure of the National Jewish Federation Bond Program is a topic that could be covered. Mr. Hanson noted that in the past when the Board has considered a bond program, such as it will do with National Public Media, the parties interested in creating the program would come and give a presentation to the Board about why it makes sense to create the program, and then the Board would pass a resolution to form the bond program before a transaction under the program would be presented for the Board’s consideration. He agreed that that would be a good topic for one of the quarterly meetings. Mr. Henry summarized the discussion as follows:

• The Board will meet in person quarterly and that meeting will include (1) a presentation by a relevant speaker, and (2) proposed transactions, if there are any, to be presented to the Board.

• Staff will research a better teleconferencing option, such as Zoom.

Mr. Heller said that STEM School will likely be on the agenda for the October meeting. A calendar of all meetings is posted on the Authority website. Except for the joint November/December meeting which is held the first Wednesday in December, and the summer meeting scheduled to coincide with a Rockies home game, Board meetings are regularly scheduled for the fourth Wednesday of the month, beginning at 12:30 p.m.

Agenda Item 3. Discussion regarding multi-state charter financings and national issuers Mr. Heller stated that the Authority’s statute allows it to issue bonds for cultural and educational institutions out of state if there is a Colorado nexus. The Authority has issued bonds for private primary or postsecondary schools that are out of state. But it has not issued out-of-state charter school bonds, the theory being that public education is a state-specific governmental function that CECFA should keep its hands off other states’ governmental functions. But over this last decade national issuers have been issuing charter school bonds all around the country. And at the same time private and non-profit charter schools are networking across state lines. The CECFA statute requires there to always be a Colorado nexus, or a connection to Colorado. That connection would likely take the form of a charter school being part of a network. Mr. Todd said that Colorado is unique in that most of its charter schools are homegrown. In other states, charter schools are almost all networked. KIPP, a national concern, is in Colorado, but there are not many beyond that. DSST or Strive may consider expanding, he said. The problem that can arise with a network is that when there is a misstep at one of the schools within a network, all the related schools are indicted. Teachers unions nationwide have launched a massive attack on charter schools. Colorado is less affected than most other states because its charter schools are strong. Governor Polis supports charter schools and they enjoy bipartisan support from the legislature. Mr. Hanson said that the strength of charter schools in this state has grown as they have attracted and maintained a greater percentage of students. Mr. Todd said that charter schools in Colorado have 13% of the total student population. Colorado’s charter law is rated second in the nation. Chairman Wilson asked about possible negative ramifications of financing an out-of-state school with a Colorado nexus that runs into financial difficulty. Mr. Heller said that the worst outcome is the school defaults and goes into foreclosure and ends up not paying the bonds. Mr. Hanson said that people often view out-of-state bonding as a way around local politics, and a foreclosure is certain to attract a lot of media attention. Mr. Todd expressed his view that the likeliest scenario would be a school located near a state border, such as Durango, Colorado, that wants to open a school in New Mexico. Mr. Hanson said that it would be a good practice to apply multi-state evaluation criteria in a justification process when the Board considers financing out-of-state schools. In summary, Mr. Heller said that CECFA will continue with its same practices and if an out-of-state financing opportunity presents itself, the Board will evaluate it at that time. Mr. Todd suggested informing KIPP of the possibility of bond financing through the Authority should it consider replicating elsewhere. As there was no further business to be brought before the Board, the meeting was adjourned at 11:15 a.m.

Agenda Item 4. Tour of Peak to Peak Charter School Following the meeting, Mr. Todd provided a tour of Peak to Peak Charter School.

_________________________________ Dan Wilson, Chairman _________________________________ Mark Heller, Executive Director

9/30/19 8/31/19 Variance

Current Assets

Cash and Cash Equivalents 830,402 981,171 (150,769)

Accounts Receivable 25,349 32,838 (7,489)

Interest Receivable 13,790 16,373 (2,582)

Total Current Assets 869,541 1,030,382 (160,840)

Fixed Assets

Office 354,364 354,364 0

Other Assets

Investments 2,884,964 2,754,964 130,000

Total Assets 4,108,869 4,139,709 (30,840)

Liabilities (All Current)

Unearned Service Fees 104,504 132,964 (28,460)

Total Liabilities 104,504 132,964 (28,460)

Net Assets

Net Assets 4,004,365 4,006,745 (2,380)

Total Liabilites and Net Assets 4,108,869 4,139,709 (30,840)

LIABILITIES AND NET ASSETS

COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY

STATEMENTS OF FINANCIAL POSITION

SEPTEMBER 30, 2019 AND AUGUST 31, 2019

ASSETS

DRAFT

% of Variance % of Variance

Actual Budget Variance to Budget Actual Budget Variance to Budget

Operating Revenue

Interest and Dividends 4,306 4,167 139 3.3 78,394 50,000 28,394 56.8

Realized Gain (Loss) on Investments 0 292 (292) (100.0) 1,458 3,500 (2,042) (58.3)

Other Income 0 0 0 0.0 0 0 0 0.0

Annual Fees 30,534 41,667 (11,132) (26.7) 563,207 500,000 63,207 12.6

Total Revenue 34,840 46,126 (11,285) (24.5) 643,059 553,501 89,559 16.2

Operating Expenditures

Accounting Services 0 1,125 (1,125) (100.0) 11,700 13,500 (1,800) (13.3)

Auditing 0 0 0 0.0 9,800 9,800 0 0.0

Bank Charges 150 0 150 0.0 180 0 180 0.0

Contingency / Miscellaneous 0 833 (833) (100.0) 2,384 10,000 (7,616) (76.2)

Dues and Subscriptions 0 12 (12) (100.0) 1,984 5,154 (3,170) (61.5)

Insurance 15,172 300 14,872 0.0 29,043 15,325 13,718 89.5

Legal Services - General 0 4,167 (4,167) (100.0) 44,130 50,000 (5,870) (11.7)

Legislative Consulting 0 2,500 (2,500) (100.0) 27,500 30,000 (2,500) (8.3)

Marketing 0 2,354 (2,354) (100.0) 27,127 28,250 (1,123) (4.0)

Meals and Lodging 210 6,000 (5,790) (96.5) 11,857 20,300 (8,443) (41.6)

Meetings and Seminars 0 1,500 (1,500) (100.0) 25,822 31,150 (5,328) (17.1)

Office Expense 678 1,167 (490) (41.9) 14,307 14,005 302 2.2

Office Services and Supplies 0 280 (280) (100.0) 3,964 3,360 604 18.0

Professional Services 225 451 (226) (50.1) 2,306 5,413 (3,107) (57.4)

Salaries 14,097 14,740 (643) (4.4) 184,375 191,626 (7,251) (3.8)

Benefits 2,040 4,722 (2,682) (56.8) 62,471 61,384 1,087 1.8

Employer Retirement Contributions 1,210 1,304 (94) (7.2) 15,819 15,643 176 1.1

Travel and Parking 839 1,545 (706) (45.7) 12,057 18,540 (6,483) (35.0)

Total Operating Expenditures 34,621 43,000 (8,380) (19.5) 486,826 523,451 (36,625) (7.0)

Operating Revenues Over Expenditures 219 3,126 (2,905) 92.9 156,233 30,050 126,184 419.9

Related Bond Issue Revenue

Initial Fees 5,000 20,833 (15,833) (76.0) 294,073 250,000 44,073 17.6

Related Bond Issue Expenditures

Financial Services - Bond Issues 0 10,000 (10,000) (100.0) 90,000 120,000 (30,000) (25.0)

Legal Services - Bond Issues 7,600 8,333 (733) (8.8) 143,467 100,000 43,467 43.5

Total Bond Issue Expenditures 7,600 18,333 (10,733) (58.5) 233,467 220,000 13,467 6.1

Related Bond Issue Revenues Over (Under) Expenditures (2,600) 2,500 (5,100) (204.0) 60,606 30,000 30,606 102.0

Operating Revenues Over Expenditures before Special Projects (2,381) 5,626 (8,005) 142.3 216,839 60,050 156,790 261.1

Board Approved Special Project Expenditures

DAC Compliance Contract 0 0 0 0.0 0 0 0 0.0

Moral Obligation Charter School Fund 0 0 0 0.0 0 0 0 0.0

Arbitrage Rebate Support 0 0 0 0.0 0 0 0 0.0

Total Board Approved Special Project Expenditures 0 0 0 0.0 0 0 0 0.0

Revenues Over Expenditures after Special Projects (2,381) 5,626 (8,005) 142.3 216,839 60,050 156,790 261.1

Beginning Net Assets 3,787,526

Ending Net Assets 4,004,365


STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

SEPTEMBER 30, 2019

ONE AND TWELVE MONTHS ENDED

DRAFT

MATURITY PAR YIELD TO DATE MKT VALUE2

MKT VALUE3

DATE AMOUNT DESCRIPTION COUPON MATURITY1

ACQUIRED AT 9/30/18 9/30/19

WELLS FARGO CERTIFICATES OF DEPOSIT:

7/6/2020 125,000 KEYBANK CERTIFICATE OF DEPOSIT 1.800% 1.800% 6/28/2017 122,809 124,996

TOTAL WELLS FARGO CERTIFICATES OF DEPOSIT 122,809 124,996

MULTI-BANK SECURITIES CERTIFICATES OF DEPOSIT:

11/15/2019 141,000 AFFINITY FEDERAL CREDIT UNION CERTIFICATE OF DEPOSIT 2.900% 2.900% 11/20/2018 141,045 141,169

11/25/2019 100,000 BMO HARRIS CERTIFICATE OF DEPOSIT 2.500% 2.500% 5/24/2018 99,909 100,089

11/26/2019 175,000 BANK HOPE CERTIFICATE OF DEPOSIT 1.700% 1.700% 5/26/2017 173,241 174,942

3/2/2020 54,000 ALLY BANK MIDVALE CERFITICATE OF DEPOSIT 1.800% 1.800% 3/6/2017 53,335 53,987

3/24/2020 141,000 BMW BANK CERTIFICATE OF DEPOSIT 1.750% 1.750% 5/16/2017 139,041 140,937

5/18/2020 175,000 AMERICAN EXPRESS CERTIFICATE OF DEPOSIT 1.900% 1.900% 5/17/2017 172,322 175,089

5/18/2020 102,000 ENERBANK CERTIFICATE OF DEPOSIT 2.750% 2.750% 6/13/2018 101,977 102,598

8/17/2020 198,000 FIRST TECHNOLOGY FCU CERTIFICATE OF DEPOSIT 2.800% 3.005% 1/31/2019 197,599 199,727

9/1/2020 102,000 AMERICAN EAGLE CERTIFICATE OF DEPOSIT 2.750% 2.750% 6/13/2018 101,757 102,882

9/21/2020 180,000 BARCLAYS BANK CERTIFICATE OF DEPOSIT 1.950% 1.950% 10/5/2017 176,740 180,259

10/14/2020 100,000 AMERICAN EXPRESS CERTIFICATE OF DEPOSIT 2.200% 2.200% 2/9/2018 98,397 100,455

10/15/2020 125,000 CAPITAL ONE CERTIFICATE OF DEPOSIT 2.200% 2.200% 2/9/2018 123,360 125,577

3/23/2021 175,000 F & M BANK CERTIFICATE OF DEPOSIT 2.450% 2.450% 4/19/2018 172,728 176,661

3/29/2021 100,000 MERRICK BANK CERTIFICATE OF DEPOSIT 2.700% 2.700% 4/19/2018 99,289 101,329

4/12/2021 75,000 MORGAN STANLEY BANK CERTIFICATE OF DEPOSIT 2.800% 2.800% 4/26/2018 74,632 76,129

5/3/2021 125,000 DISCOVER BANK CERTIFICATE OF DEPOSIT 2.850% 2.850% 5/2/2018 124,494 127,052

8/30/2021 157,000 ALLY BANK SANDY UTAH CERTIFICATE OF DEPOSIT 3.000% 3.000% 8/30/2018 156,688 160,547

9/7/2021 100,000 DISCOVER BANK CERTIFICATE OF DEPOSIT 3.000% 3.000% 9/6/2018 99,790 102,279

9/7/2021 90,000 SALLIEMAE CERTIFICATE OF DEPOSIT 3.000% 3.000% 9/7/2018 89,811 92,051

12/31/2021 131,000 JPMORGAN CHASE CERTIFICATE OF DEPOSIT 2.100% 2.100% 7/16/2019 131,000 131,106

1/18/2022 105,000 CITIBANK CERTIFICATE OF DEPOSIT 3.000% 3.000% 1/18/2019 105,000 105,328

130,000 TEXAS EXCHANGE CERTIFICATE OF DEPOSIT 1.750% 1.750% 9/19/2019 130,000 129,819

TOTAL MULTI-BANK SECURITIES CERTIFICATES OF DEPOSIT 2,762,155 2,800,012

TOTAL INVESTMENTS 2,884,964 2,925,008

CURRENT

INTEREST BALANCE

RATE 9/30/19

CHASE BANK CHECKING 0.000% 206,548

CHASE BANK SAVINGS 0.180% 5,019

CSAFE SAVINGS 2.100% 611,813

WELLS FARGO SECURITES 0.160% 967

MULTI-BANK SECURITIES 0.000% 5,443

TOTAL CASH AND CASH EQUIVALENTS 829,790

TOTAL CASH, CASH EQUIVALENTS AND INVESTMENTS 3,754,798

1= YIELD TO MATURITY - RATE WHEN BOND IS PURCHASED2=MKT VALUE AT 9/30/2018 - BONDS ADJUSTED TO FAIR MARKET VALUE AT FISCAL YEAR END. BONDS PURCHASED SINCE 9/30/2018 ARE STATED AT FACE VALUE ON DATE OF PURCHASE. TOTAL TIES TO INVESTMENT ACCOUNT ON BALANCE SHEET.3=MKT VALUE AT 9/30/2019 - BONDS AND CD'S FAIR MARKET VALUE AT END OF CURRENT MONTH.


SUPPLEMENTARY INFORMATION

SCHEDULE OF CASH, CASH EQUIVALENTS AND INVESTMENTS

SEPTEMBER 30, 2019

DRAFT

October Board Meeting - Pricing Report

Closing Date: 10/7/2019 Borrower: Rocky Mountain School of Expeditionary Learning Transaction: Series 2019 Education Revenue Bonds Classification: Charter School Type: Negotiated Financial Advisor: Specialized Public Finance Inc. Underwriter: Robert W. Baird & Co. Program: N/A Series Par: $7,310,000.00 Underlying Rating: NR Refunding: N/A Final Maturity: 3/1/2050 Structure: Level debt service Interest Rate: 4.00% – 5.00% Call Feature: Callable on 3/1/2019 at par. Costs of Issuance: $362,500.00