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West Contra Costa USD
General Obligation Bond Update
Presentation to the Board of Education
October 15, 2014
This Evening’s Informational Items
 Present the Resolution to the Board of Education authorizing the issuance
and sale of $135 million in general obligation bonds.
 Resolution incorporates approval of forms of the following documents:
 Bond Purchase Contract
 Continuing Disclosure Certificate
 Preliminary Official Statement
 The Board of Education will be presented the same documents for approval
in an action item at its next scheduled meeting on November 12, 2014.
Presentation to the West Contra Costa Unified School District Board of Education | page 1
Bond Financing Professionals
 Nixon Peabody, Bond Counsel
prepares legal documents and issues legal and tax opinions
 Nixon Peabody, Disclosure Counsel
outlines disclosure obligations, prepares preliminary/final official statements, prepares
supplemental disclosure and issues disclosure opinion
 KNN Public Finance, Financial Advisor
manages overall planning and execution of the financing for the District, and provides
District information for planning and disclosure work by the financing team
 Piper Jaffray & Co., Stifel Nicolaus & Co Incorporated,
Backstrom McCarley Berry & Co LLC, Underwriters
manage investor outreach and sale of the bonds to investors, and assist with
structuring the financing
Presentation to the West Contra Costa Unified School District Board of Education | page 2
Proposed Bond Sale Parameters
 Bonds will be issued as $50 million Election of 2010, Series C, and $85
million Election of 2012, Series B.
 Fixed-rate current interest bonds, with up to 40-year final maturity
 No capital appreciation bonds
 Maximum underwriter’s discount of $5.25/bond.
Presentation to the West Contra Costa Unified School District Board of Education | page 3
Proposed Amortization
 The 2015 Bonds need to be structured to allow remaining debt service
capacity for future bond issuances.
 A longer final amortization of up to 40 years using only current interest
bonds will help near-term debt service constraints and provide maximum
future flexibility.
Election of 2010
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Election of 2010 Existing Debt Service
2055
2053
2054
2051
2052
2049
2050
2047
2048
2045
2046
2042
2043
2044
2040
2041
2038
2039
2036
2037
2034
2035
2032
2033
2030
2031
2028
2029
2026
2027
2024
2025
2022
2023
2020
2021
2018
2019
2016
2017
2015
$-
Election of 2010 Series C Debt Service
Election of 2012
$40,000,000
$30,000,000
$20,000,000
$10,000,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
$-
Election of 2012 Existing Debt Service
Election of 2012 Series B Debt Service
Revenue assuming 4.0% AV Growth, $48 tax rate, Funds on Hand
Note: Indicative debt structure, subject to change.
Presentation to the West Contra Costa Unified School District Board of Education | page 4
Issuance Schedule
 The current issuance schedule assumes a tax rate of $48 per $100,000 of
assessed value, up to 40-year maturity structure and 4% AV growth
 Higher assessed value growth could permit earlier issuance and/or fewer transactions.
 Shorter maturity term would constrain remaining authorization and/or require tax rates
increases up to statutory maximum (i.e. 30-year structure would result in tax rate increase up
to $56 per $100,000 of AV, absent favorable AV growth).
Year
2014-15
2016-17
2018-19
2020-21
2045
Series
2010
Measure D
2012
Measure E
Previously Issued
$140,000,000
$85,000,000
$225,000,000
50,000,000
85,000,000
135,000,000
60,000,000
65,000,000
125,000,000
65,000,000
60,000,000
125,000,000
44,714,718
56,963,559
101,678,277
20,285,282
8,036,441
28,321,723
$380,000,000
$360,000,000
$740,000,000
Elec. 2010 Ser. C
Elec. 2012 Ser. B
Elec. 2010 Ser. D
Elec. 2012 Ser. C
Elec. 2010 Ser. E
Elec. 2012 Ser. D
Elec. 2010 Ser. F
Elec. 2012 Ser. E
Elec. 2010 Ser. G
Elec. 2012 Ser. F
Total
Issuance amounts are subject to change based on future AV growth, market conditions, interest rates at the time of
sale, and structure assumptions. Bonds issued after 2015 may be required to use AB 182 compliant capital
appreciation bonds or the District may need to use Bond Anticipation Notes.
Presentation to the West Contra Costa Unified School District Board of Education | page 5
Recommended Financing Schedule*
Date
Activity
September 9, 2014
Subcommittee approval of financing schedule and structure
September 17, 2014
Board approval of financing team
September 18, 2014
Financing Kickoff Meeting
September-October
Drafting of legal documents and preliminary official statement
October 15, 2014
Informational item: resolution authorizing sale (1st of 2 required consecutive
meetings)
November 12, 2014
Board approval of resolution, legal documents, and preliminary official statement
Week of January 12, 2015
Meetings with rating agencies
February 11, 2015
Board approval of updated preliminary official statement
February 12, 2015
Post Preliminary Official Statement
Week of February 16
Investor outreach & discussion
February 26 or March 4
Pricing
March 11, 2015
Closing
*Subject to change
Presentation to the West Contra Costa Unified School District Board of Education | page 6
Alternative/Accelerated Financing Schedule*
Date
Activity
September 9, 2014
Subcommittee approval of financing schedule and structure
September 17, 2014
Board approval of financing team
September 18, 2014
Financing Kickoff Meeting
September-October
Drafting of legal documents and preliminary official statement
October 15, 2014
Informational item: resolution authorizing sale (1st of 2 required consecutive
meetings)
Week of November 3, 2014
Meetings with rating agencies
November 12, 2014
Board approval of resolution, legal documents, and preliminary official statement
November 13, 2014
Post Preliminary Official Statement
Week of November 17, 2014
Investor outreach & discussion
Week of December 1, 2014
Pricing
Week of December 15, 2014
Closing
*Subject to change
Presentation to the West Contra Costa Unified School District Board of Education | page 7
Rationale for Pricing in 2015
 While interest rates are currently low, there appears to be very little
upward pressure which would drastically change rates into early
2015.
 Looking for increased investor interest in the District's bonds.
 Our recommendation is for additional time to be placed between the SEC
Subpoenas and the District coming to market.
 After the first of the year, investors/portfolio managers re-evaluate planned
investment options. Issues that were important to them at the end of the year
diminish as they all look for new investment opportunities.
 The investor pool typically shrinks during December as books close and portfolios
lock in their gains/losses for the year. This could draw down the total number of
available investors.
Presentation to the West Contra Costa Unified School District Board of Education | page 8
Rationale for Pricing in 2015 (continued)
 Our plan for the District has always been a robust investor outreach,
looking towards getting an increased number of investors interested
in the District's bonds.
 Finally, the District has always issued bonds with an eye to the cash
in the bank and that is why a target closing date in March had been
discussed as the best timing because of the amount of funds onhand.
Presentation to the West Contra Costa Unified School District Board of Education | page 9