OREGON MUNICIPAL DEBT ADVISORY COMMISSION ANNUAL REPORT MUNICIPAL DEBT ADVISORY COMMISSION

Transcription

1 OREGON MUNICIPAL DEBT ADVISORY COMMISSION ANNUAL REPORT ' OREGON MUNICIPAL DEBT ADVISORY COMMISSION James P. Shannon Chair OREGON STATE TREASURY Anthony Meeker State Treasurer 159 State Capitol Sakm, Oregon This Annual Report highlights the Commission's work during It is published pursuant to ORS (2).

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3 i TABLE OF CONTENTS MEMBERS OF THE MUNICIPAL DEBT ADVISORY COMMISSION 1 THE MDAC ROLE. 2 ffighlights OF SELECTED EVENTS S THE YEAR IN REVIEW 7 NEW LEGI$LATION 9 TABLES I. OREGON BOND INDEX & BOND BUYER INDEX 13 II. ALLOCATION & USE OF STATE OF OREGON 1989 PRIVATE ACTIVITY BOND CAP 15 III PRIVATE ACTIVITY BOND CARRY FORWARD ALLOCATIONS 17 IV. LOCAL GOVERNMENT BONDS ISSUED 19 V. STATEBONDSISSUED 21 VI. TOTAL LOCAL GOVERNMENT DEBT BY COUNTY AS OF DECEMBER 31, Oregon State Treasury 159 State Capitol Salem, Oregon /

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5 1 MUNICIPAL DEBT ADVISORY COMMISSION The Oregon Municipal Debt Advisory Commission (MDAC) was created by the 1975 Legislative Assembly for the principal purpose of improving the market for bond issues of state and local governments in Oregon. MEMBERS OF THE MDAC: ANTHONY MEEKER STEPHEN S. SMITH, Jr. JAMES P. SHANNON, Chairperson* GERALD W. BROCK MANVILLE HEISEL D. GARY HOLLIDAY MARSHALL KNEELAND LINDA L. MAY State Treasurer, Member by Position Deputy State Treasurer, Treasurer's designee Rankin, VavRosky, Doherty, MacColl & Mersereau Public Member Term expires June 30, 1991 Director of Business Services, Marion County School Dist. #24, Oregon School Boards Association Representative Term expires June 30, 1990 Attorney, Central Point Special Districts Association Representative Term expires June 30, 1991 City of Albany, Finance Director League of Oregon Cities Representative Term expires June 30, 1990 Vice President, Manager/Underwriter Municipals, Shearson Lehman Hutton, Portland Public Member Term expires June 30, 1991 Wasco County Treasurer, The Dalles Assoc of Oregon Counties Representative Term expires June 30, 1993 * On October 27, 1989 Scott Clements, resigned as Chainnan of the MDAC to assume his new duties as Treasurer of the Washington Public Power Supply System. Scott was first appointed to the MDAC in March of'l980. The Commission, staff and bond community appreciate Scott's excellent service. Oregon State Treasury 159 State Capitol Salem, Oregon /

6 2 MDAC'S ROLE The 1975 Oregon Legislature created the "Municipal Debt Advisory Commission" through ORS to: (1) Provide assistance and consultation, upon request, to the state or local government units. To assist in planning, preparating, marketing and selling of new bond issues to reduce issuance costs and to assist in protecting the issuer's credit (2) Collect, maintain and provide financial, economic and social data on local government units pertinent to their ability to assume and service bonded obligations. (3) Collect, maintain and provide information on bonds sold and outstanding and serve as a clearinghouse for all local bond issues. (4) Maintain contact with municipal bond underwriters, credit rating agencies, investors and others to improve the market for local government bond issues. (5) Prepare, advertise and distribute, upon request of issuers, preliminary official statements required by ORS and notices of bond sales required by ORS and (6) Undertake commission studies on methods to reduce the costs of state and local issues. (7) Recommend changes in state law and local practices to improve the sale and servicing of local bonds. (8) Perform any other function required or authorized by law. (9) Pursuant to ORS to adopt rules necessary to carry out its duties. In pursuit of this charge, the MDAC has: (1) Promulgated administrative rules on public notice and bond issuance, for issuance of Citizens [Mini] Bonds and tenns and conditions to be satisfied by registrars for municipal bonds. (2) Held regular meetings to hear public and bond community input on matters of varying ":nportance. (3) Held biennial conferences to acquaint financial managers and other public administrators with important statutory and regulatory occurrences. (4) Published a regular (quarterly) newsletter, The Bond Advisor, which contains varied information relevant to municipal bonds. (5) Published a regular (fortnightly) calendar of proposed and new bond issues, The Oregon Bond Calendar, which infonns and shapes bond market transactions. (6) Assisted issuers in preparing and providing essential disclosure information. Oregon State Treasury 159 State Capitol Salem, Oregon I

7 3 MDAC STAFF The Debt Management Division (DMD) of the Oregon State Treasury serves as staff for the MDAC and operates under the policies, procedures and administrative rules promulgated by the Commission. The staff consists of: Charles R. Smith Larry Groth* Michael A. Clark Teresa Emmons Manager Analyst Analyst Administrative Assistant The MDAC through the DMD provides technical assistance to local governments in preparating of official statements and establishing the terms of a bond sale, such as the sale date, maturity schedules, call features, ratings and similar features relative to debt issuance and administration. The Municipal Debt Information System (MDIS) contains the debt profile of local debt-issuing municipal districts. The Commission strives to improve existing services and to initiate new programs aimed at lowering borrowing costs and improving debt-management practices for local governments, particularly in the area of capital planning and debt administration. In 1989,the staff provided assistance in the preparation of disclosure documents for over 149 separate local government bond issues. The Treasury through the DMD advises, assists, and provides central coordination and approval of the issuance of all State agency bonds. This includes coordinating the timing of the various agency bond sales, administering the issuance of bonds, securing credit ratings, preparing transcripts and other documents, providing for the printing and delivery of the bonds, and assisting with the signing and closing of bond issues. The DMD supervises the disclosure of financial and economic information when Oregon general obligation bonds are offered for sale. The Bond Calendar, published by the Treasury for the MDAC, lists all state and local sales, enabling state agencies and local municipalities to minimize scheduling conflicts which may adversely impact the marketability of their issues. The Bond Calendar also contains information regarding tentative competitive and negotiated sales, bond election results, and an Oregon Bond Index, which charts trends in Oregon municipal bond interest rates. The Treasury and DMD also publish for the MDAC the Oregon Bond Advisor, and the Oregon Bond Manual. The former includes results of recent bond sales, changes in laws or practices, and articles on topics of general interest in the municipal bond field. The latter is a handbook, last published in 1987, which assists Oregon local government units with the process of issuing and managing debt. It is scheduled to be updated and released in mid DMD also staffs the Private Activity Bond (PAB) Committee. This three-member Committee consists of a representative from the State Executive Department (by Statue the Chair), a representative from the Oregon State Treasurer, and a public member appointed by the Governor. The PAB allocates State Private Activity volume cap pursuant to ORS * Bill Aldrich transferred to the Oregon Department of Revenue November 20, Bill had been with the Debt Management Division since His efforts and dedication are sincerely appreciated. Oregon State Treasury 159 State Capitol Salem, Oregon I

8 Oregon State Treasury 159 State Capitol Salem, Oregon /

9 5 HIGHLIGHTS OF SELECTED EVENTS IN 1989 January 9 January 9 January 18 March 15 March28 Anthony Meeker sworn in as Oregon State Treasurer for a full tenn following his election at the November 8, 1988, general election. Oregon's 65th Legislative Assembly convenes in regular session. State of Oregon Department of Energy sells $11,700,000 General Obligation bonds in three series. $5,000, Series A (Governmental Purpose) $5,700, Series B (Private Activity) $1,000, Series C (Federally Taxable) MDAC meeting held in conjunction with Oregon Municipal Finance Officers Association Annual Conference. The main topic on the agenda concerned the "new federal disclosure requirements and their impact on issuers." Guest speakers included Stephen S. Stem and 'Charles C. Wolf, of the law finn O'Melveny & Myers. Voters approved issuance of: Clackamas Community College -$9,500, Building Bonds, (Clackamas County); Falcon-Cove Beach Water District -$80,000 G.O. Water Bonds; Josephine County School District #7 -$6,985,000 G.O. School Bonds, (Grants Pass); Lincoln Beach Water District -$1,270,000 G.O. Water Bonds, Kemville, Gleneden Beach, (Lincoln County); Port of Morrow -$750,000 G.O Port Improvement and Refunding Bonds, (Morrow County); City of-helix -$86,000 G.O. Bonds, (Umatilla County); Washington County Elementary School District #7 -$5,175,000 G.O. School Bonds, (Hillsboro) March April May 12 May 17 MDAC issued its annual report for The report highlighted the Commission's work during calendar year 1988 and presented a summary of significant events that occurred in the municipal bond market during Spring 1989 issue of The Oregon Bond Advisor published. The U.S. Treasury Deparbnent issues new rules that define and clarify the arbitrage-rebate requirements established in the Tax Refonn Act of Voters approved issuance of: Clackamas County School District #3J -$20,500,000 G.O. School Construction Bonds, (West Linn); Deschutes County School District #2J -$2,000,000 G.O. School Construction Bonds, (Redmond); Lincoln County -$8,400,000 G.O. Jail Construction Bonds; City of Heppner -$625,000 G.O. Sewer Bonds, (Morrow County); Multnomah County School District #SlJ -$895,000 G.O. School Improvement Bonds, (Riverdale); City of Milton-Freewater -$193,000 G.O. Fire Equipment Bonds, (Umatilla County); May23 June8 MDAC teleconference held to allow the Treasurer's hearing on a waiver of ORS (advance refunding requirements) for the Port of Morrow. MDAC teleconference held in conjunction with the Treasurer's hearing on a waiver of ORS (advance refunding requirements) for the City of Eugene. Oregon State Treasury 159 State Capitol Salem, Oregon I

10 6 June27 Voters approved issuance of: Clackamas Union High School District #4 -$1, G.O. School Construction Bonds, (Molalla); City or Dallas -$650,000 G.O. Library Bonds, (Polle County); June29 July July 4 August 8 The Securities and Exchange Commission unanimously approves the first formal municipal bond disclosure rules. The new rule (15c2-12) is effective January 2, Summer 1989 issue of The Oregon Bond Advisor published. The Sixty-Fifth Oregon Legislative Assembly Regular Session adjourns. Voters approved issuance of Siuslaw Public Library -$1, G.O. Library Bonds, (Lane County); City or Yachats -$980,000 G.O. Water Bonds, (Lincoln County); Sept. 19 Voters approved issuance of: Lake County School District #14 -$3,500,000 G.O. Building Bonds, (North Lake); Lane County School District #52 -$3,500,000 G.O. School Bonds, (Bethel); Washington County School District #23 -$30,000,000 G.O. Building Bonds, (Tigard); October2-3 November November7 MDAC & Oregon State Treasury sponsor the 1989 Oregon Local Government Conference. The Conference, held at the Portland Marriott Hotel, enjoyed record attendance. Fall 1989 issue of The Oregon Bond Advisor published. Voters approved issuance of: City or Corvallis -$6,850,000 G.O. Library Bonds, (Benton County); Clackamas County School District #7J -$17,800,000 G.O. Multi-purpose Bonds, (Lake Oswego); Brooks Community Sewer District -$1,415,000 G.O. Sewer Bonds, (Marion County); City or Stayton ~$2,000,000 G.O. Water Bonds, (Marion County); City of Joseph -$1,200,000 Water Revenue Bonds, (Wallowa County); City or Pendleton -;;$1,700,000 G.O. Armory Renovation Bonds, (Umatilla County). Oregon State Treasury 159 State Capitol Salem, Oregon I

11 7 THE YEAR IN REVIEW The MDAC continued to respond to local and national inquiries for information about Oregon's debt management experiences. In 1989, the MDAC staff received and recorded numerous bond and note sales. Sales information was published in the Bond Calendar and entered into the Municipal Debt Information System. Approximately 500 people in Oregon receive the Bond Calender and 1,500 people and organizations receive the Oregon Bond Advisor. The DMD continued to monitor local and national bond markets and economic trends, advise agencies of market developments, and make municipal.bond policy and legislation recommendations to the Treasurer. The DMD also reviewed and recommended approval or disapproval of various issues of Industrial Development Revenue Bonds proposed by the Oregon Economic Development Commission. On October 2 and 3, 1989 the MDAC and Oregon State Treasury sponsored the Oregon Local Government Conference on "Debt Financing for the 1990s." The Conference was attended by over 200 persons including local government finance officers, state finance officers, investment bankers, financial consultants, bond counsel and investors. The MDAC and Treasury thanks those who contributed their time and expertise to inform those in attendance on the various aspects of debt issuance and management. The Conference provided an opportunity for all to expand their knowledge and skills in many areas. Conference attendees learned of new legislation from Harvey Rogers of Lindsay Hart Neil and Weigler. They received a briefing on disclosure issues from Paul debary of Hawkins, Delafield & Wood. Yvonne Addington, Oregon Economic Development Department, and Barbara Jensen, Oregon Department of Energy, discussed state loan and grant programs for local governments. James Fralick, principal and senior economist for Morgan Stanley, described current economic conditions and what they portend for future municipal financing. John Fargnoli, from Standard and Poor's Corporation, described ratings and the rating process for the conferees. This was followed by a presentation on debt policies and their importance by Chip Pierce, Public Financial Management and Richard Hofland, Acting Debt Manager for the City of Portland. Calvin Grigsby, president of Grigsby Brandford Powell, Inc., gave a detailed overview of how and when to use Lease Purchase (LP) and Certificate of Participation (COP) financing. INTEREST RATES Table I illustrates the variations in interest rates that occurred during The Bond Buyer 20 G.O. index began the year at 7.44% and was 6.97% at the end of the year. A high of7.72% occurred March 30.and a low of 6.86% occurred August 3. PRIVATE ACTIVITY BONDS The Debt Management Division serves as staff for the Advisory Council on the Allocation of the State Private Activity Bond Limit and the Private Activity Bond Committee. In 1986, President Reagan signed into law the Tax Reform Act of 1986 which, along with other effects, imposed a state-by-state volume cap on certain "private activity bonds" and the private-use portion of governmental bonds in excess of $15 million, applicable to bonds issued after August 15, Both the Advisory Council and PAB Committee were established by a 1985 Legislative Act. Council members, and one citizen member of the Committee, are appointed by the Governor. By statute, a representative of the the State Executive Department and a representative of the State Treasurer serve on the Private Activity Bond Committee. Under the Tax Reform Act of 1986, the State of Oregon volume cap for 1989 was $150 million for certain "private activity bonds". Table II lists 1989 private activity bond use. Table III lists 1989 carry forward allocation made by the Private Activity Bond Committee. Oregon State Treasury 159 State Capitol Salem, Oregon /

12 8 The Debt Management Division staff acting for the Private Activity Bond Committee mailed its annual survey to some 500 plus Oregon bond community participants to determine: (1) their interest in a carry forward allocation from the 1989 private activity bond limit for any projects planned in the subsequent three years; and (2) the likelihood of a need for an allocation from the 1990 private activity bond limit In May, the Staff, fulfilling the requirements of ORS , sent out a "request for verification of debt" to the 1,400 Oregon municipalities contained on the MDIS database. The percent ofrespondents was high. ORS states that "the finance officer of each local government unit authorized by law to issue bonds at least once every biennium, at dates established by the commission, shall verify with the commission the commission's information on the unit's bonded obligations." The MDAC appreciates the efforts of all local officials who complied with the statute and helped ensure that the data in the system is reliable. STATE OF OREGON ISSUANCE Total general obligation debt issued by the State of Oregon amounted to $159,908, 160 in calendar year Of this amount, $100,000,000 was in one-year Veterans' Tax Notes. Other state issuers were the Department of Energy ($11,700,000), the Oregon Housing Agency ($7,000,000) and the State Board of Higher Education ($41,208,160.65). Certificates of Participation were issued for ($1,575,000) of the Higher Education Series A. New revenue bond debt of the State consisted of an Housing Agency issue of $25,000,000 and $36,307,500 in Economic Development Revenue Bonds by the Economic Development Department Table III summarizes the total outstanding debt (as of December 31, 1989) for the State, including both state and local government issues. Types and purposes of the debt-issued ar.e-included. LOCAL ISSUANCE The Mw1icipal Debt Information System (MDIS) generated 149 overlapping-debt-repgrts-dw:ing-the~)..., 1 e... arht:~o~l" s... al... e... s.., financial reports and rating agency requests. Oregon municipal districts sold 107 bond issues totaling $487,581,541, a significant increase from the $321,698,011 issued in 1988, but a decrease from the $573,090,527 sold in Ninety-two million dollars of the 1989 debt issued were Certificates of Participation or Lease Purchase Agreements. Tax-exempt lease purchasing is becoming an increasingly popular method by which municipalities are acquiring capital equipment The advantages are that it allows the issuer to avoid issuing general obligation debt and to pay the acquisition cost over the useful life of the equipment. This method is likely to become increasingly popular in the future. Table IV describes the type and purpose of the debt issued and Table V illustrates local government debt issued in 1989 by county. REFUND IN GS The Debt Management Division staff reviewed and the Treasurer gave final approval to 14 local government advance refunding proposals totaling more than $90 million. State law provides that the State Treasurer may grant waivers of the provisions of ORS to allow certain advance refundings. These waivers may be granted following a hearing held at the same time and place as a regular or special meeting of the MDAC. Two hearings were held by the Treasurer pursuant to Oregon Administrative Rules (during special or regular meetings of the MDAC) to determine whether to waive advance refunding requirements for advance refunding proposals. Oregon State Treasury 159 State Capitol Salem, Oregon I

13 9 TAXABLE DEBT FINANCINGS In 1987, the Port of Hood River issued the first federally-taxable municipal bond in Oregon. Since that time, several local governments have issued taxable obligations. In 1988, the City of Portland, Deschutes County, the Port of Tillamook Bay, the Port of St. Helens and the State of Oregon issued federally-taxable bonds. In 1989, the State of Oregon ($1,000,000) and the Northern Wasco County People's Utility District ($10,244,000) were the only issuer's of federally-taxable bonds. However, due to the 1986 Tax Reform Act, it is likely that the municipal market will see more federally taxable issues in the future. While these issues are taxable under federal law, they remain exempt from Oregon income tax. MUNICIPAL MARKET In 1989, the municipal market was often influenced by factors such as the policy of the Federal Reserve, the strength of the dollar and the U.S. Treasury market's reaction to information. The Market, however, remained stable and traded within a fairly narrow range from % (see Table I). Commercial banks continued to reduce their municipal portfolios due to corporate cash needs and the 1986 changes in the tax law which decreased their incentive to hold tax-exempt bonds. Private holdings of tax-exempts increased, offsetting the reduction of Commercial bank holdings resulting in a fairly consistent balance between supply and demand for municipal issuances during most of In 1989, the municipal yield difference between short and long-term maturities decreased from a 135-point basis spread in January 1989 to an historically small 60 spread in mid This contraction has been occurring over the past few years indicating that investors are requiring less premium to hold longer maturities over shorter maturities. The yield differences or spreads between "AAA" and "A" rated municipals were significantly smaller in 1989 than in In 1989, this quality spread declined to an abnormally low level with "A" revenue bonds yielding only 10 to 40 basis points over comparable "AAA" bonds. In 1988, this spread was 45 to 65 basis points. The reduction indicates that investors are receiving less for the additional risk of "A" rated bonds over "AAA" bonds. LEGISLATION Summary of selected legislation passed by the 1989 Legislature Bill Number SB 56 SB 59 SB 197 SB 752 SB 788 Chapter Number Summary Repeals the laws relating to the Oregon Building Authority. Establishes a unifonn, controlled procedure for the financing of authorized projects through the use of lease-purchase financing and Certificates of Participation (COP's) by State agencies, The Legislature authorized a total principal amount of $172 million for the biennium for such financing agreements. Deletes the requirement that advance refunding plans be submitted within seven days following the adoption of an ordinance or resolution approving the plan. Eliminates an investment exemption that previously applied to reserve funds for. bonds. Bond reserves may not be invested for a term of more than 18 months, unless the local government investor has an approved, adopted investment policy which authorizes such a long-term investment. Allows most special districts and Oregon counties to do lease-purchase financing for real and personal property over a period of not more than 20 years. Oregon State Treasury 159 State Capitol Salem, Oregon I

14 10 SB SB SB SB SJR 41 HB HB HB HB HB HB HB HB : HB Continues the state income tax exemption for interest earned on Oregon local government municipal bonds. Establishes conditions for issuance and sale of taxable obligations by cities with a population of 85,000 or more. Authorizes local governments to borrow directly from the State Water Pollution Control Revolving Fund, instead of issuing bonds which would be purchased by the Fund. State of Oregon Land acquisition and capital construction appropriation. Refers to the state voters the question of whether the Department of Environmental Quality may issue bonds to finance hazardous waste activities. Appropriates approximately $59 million to the Oregon War Veterans' Fund on July l, 1989 and approximately $18.2 million to the Emergency Board for the biennium beginning July 1, 1989 for the purpose ofrepaying the Oregon War Veterans' Fund for past transfers to the General Fund. Provides that Highway User Tax Revenue Bonds will be issued in the same process as other State bonds and sold in the manner determined by the State Treasurer as authorized by law. Provides for a reserve account to be optional, not mandatory. Allows port districts to impose assessments, to issue i.."llprovement warrants, to issue special assessment and Banc:roft bonds for projects which port districts.are authorized by existing law to construct Increases to $1.5 million the amount which port districts ma)'_have outstanding in loans from the Port Revolving Fund; extends the loan term to 20 years and sets minimum interest rate at 5 percent. Expands the powers of housing authorities to deal in property, create reserves and to enter into letters of credit. Aut11orizes school districts to issue bonds to fund asbestos abatement in school buildings, school equipment or property with lease-purchase agreements. The purchase period can be up to 30 years. Authorizes mass transit districts to enter into lease-purchase agreements and obtain financing through the issuance of Certificates of Participation. There is no limit on term or type of property which may be financed. Authorizes the issuers of Bancroft bonds to sell the assessment contracts which support the bonds and use the sale proceeds to pay-off the bonds. Creates the Housing, Educational and Cultural Facilities Authority to be used for assembling and financing of lands for housing, educational and cultural uses and for the construction and financing of facilities for such uses, financed through the issuance of revenue bonds secured solely by the properties and rentals thus made available. Oregon State Treasury 159 State Capitol Salem, Oregon I

15 11 HB HB HB Establishes the Oregon Baccalaureate Bond Program to encourage citizens to plan and save for post-secondary education. Oregon Baccalaureate Bonds will be bonds, notes or other evidences of indebtedness of the State of Oregon issued by the State Treasurer on behalf of a State agency. Substantially changes existing systems-development law. Limits the uses to which systems development revenues can be put. Specifies factors that local governments must consider in developing systems development charges. State of Oregon authorization and limitation for the issuance of bonds and Certificates of Participation during the biennium. Also allocates the State Private Activity Bond Allocation. Authorizes the Department of Environmental Quality to sell bonds it has previously purchased. It also permits the Department to share sale proceeds with local governments. Oregon State Treasury 159 State Capitol Salem, Oregon /

16 Oregon State Treasury 159 State Capitol Salem, Oregon /

17 JAN. 5 JAN. 12 JAN. 19 JAN. 26 FEB. 2 FEB. 9 FEB. 17 FEB. 23 MAR. 2 MAR. 9 MAR. 16 MAR. 22 MAR. 30 APR. 6 APR. 13 APR. 20 APR. 26 MAY 4 MAY 11 MAY 18 MAY 25 JUNE l JUNE 8 JUNE 15 JUNE 22 JUNE 29 JULY 6 JULY 13 JULY 20 JULY 27 AUG. 3 AUG. 10 AUG. 17 AUG. 24 AUG. 31 SEPf. 8 SEPf. 14 SEPT. 21 SEPf. 28 OCT. 4 OCT. 12 OCT. 19 OCT. 26 NOV. 2 NOV. 9 NOV. 16 NOV. 23 NOV. 30 DEC. 9 DEC. 14 DEC. 21 DEC BOND G.O. High 7.72 Low 6.88 ~ 3/30 8/03 ~ l>',$7, :6,:$0: : :6.46' '.v.:6:53) ~39 ~ ' ,.6.~S / lft) /15 1( / (26 Record High: 13.44% Record Low: 1.29% *General Obligation bonds maturing in 20 years are used in compiling these indexes. The 20-bond index is approximately equivalent in rating to an "A" bond. Oregon State Treasury 159 State Capitol Salem, Oregon /

18 Oregon State Treasury 159 Stale Capitol Salem, Oregon /

19 15 TABLE II ALLOCATION & USE OF STATE OF OREGON 1989 PRIVATE ACTIVITY BOND CAP ($ Q) Amount Allocation Allocation Granted To Allocated Used PRN A1E ACTMTY BOND COMMITIEE: $ 22,500,000 USED: Port of Tillamook Bay-WID Industries $ 4,000,000 Port of Umatilla Henniston Foods 9,800,000 Port of Umatilla Oregon Dehydration 995,000 Port of Umatilla Continental Mills 4,000,000 Allocation Remain in $ 3,705,000 OREGON ECONOMIC DEVELOPMENT COMMISSION: $ 60,000;000 USED: JAE Oregon 3(28/89 $ 5,500,000 Stagg Foods 3(28/89 3,300;000 Mt Angel Beverage Refunding 10/18/89 1,995,000 Mt Angel Beverage 10/18/89 2,100,000 Puget Corporation 11(28/89 3,300,000 Pak-Best 12/05/89 1,570,0000 Wright Business Forms 12/08/89 3,500,000 McFarland Cascade 12/22/89 1,400,000 Kyotaru 12/19/89 6,000,000 Imperial Manufacturing 12(28/89 867,500 Flavorland Foods 12!29/89 3,600,000 Lincoln & Allen 12!29/89 1,175,000 Neilson Metals Industries 12/20/89 2,000,000 $ 23,692,500 OREGON HOUSING AGENCY: $ 60,000,000 USED: $ 60,000,000 OREGON DEPARTMENT OF ENERGY: $ 7,500,000 $ 0 USED: $ 0 $ 7,500,000 SUMMARY OF 1989 PRNA1E ACTIVITY CAP ACTIVITY $150,000,000 $115,102,500 Through December 31, 1989 $ 34,897,500 Oregon State Treasury 159 State Capitol Salem, Oregon I

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21 17 TABLE III STATE OF OREGON 1989 PRIVATE ACTIVITY BOND CARRY FORWARD ALLOCATIONS* Amount Amount Requestor Requested Allocated Hillsboro Economic Development Council $ 5,000,000 $ 5,000,000 The Urban Renewal Agency Housing Authority of Washington County 28,200,000 22,897,500 Boisclair Project Port of Arlington - Jack Gray 16,270,000 0 Transport, Inc. Project Port of Morrow - PGE Project 10,000,000 0 Port of St. Helens - POE Project 15,000,000 0 Portland Development Commission Galen Tyler Project 7,000,000 0 Portland Development Commission Halsey Square Project 7,000,000 7,000,000 Tualatin Development Commission Tualatin Central Urban Renewal Area TOTAL $92,470,000 $34,897,500 * Made by Private Activity Bond Committee on December 21, State of Oregon Private Activity Bond Cap for 1989, $150 million, per Tax Reform Act of Oregon State Treasury 159 State Capitol Salem, Oregon I

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23 19 TABLE IV LOCAL GOVERNMENT BONDS ISSUED IN 1989 General Obli ti on Bancroft Revenue Group Total District Total Cities $25,046,900 (AR) 20,705,000 (LP) {AR/LP) Counties 4,400,000 (AR) (LP) HFA (Hosp.Fac.Auth) (AR) Irrigation Library 1,150,000 Ports 5,410,000 (AR) 6,615,000 PUD Sanitary 1,468,300 Schools 45,364,447 (LP) 1,035,000 Service (AR) 34,480,000 (UR) Wattt TOTALS $147,819,647 $19,081,327 $13,888,600 3,265, ,075,000 6,800,000 1,800,000 10,277,036 81,620,000 15,850, ,000 33,105,000 1,310,000 22,475,426 1,556,688 21,654,940 43,720,000 26,605,000 6,517, $23,903,015 $315,858,849 $58,016,827 23,970,000 29,075,000 6,800,000 $117,861,827 4,400,000 1,800,000 10,277,036 16,477,036 81,620,000 15,850,000 97,470, , ,000 1,150,000 1,150,000 38,515,000 7,925,000 46,440,000 22,475,426 22,475,426 24,679,928 24,679,928 45,364,447 44,75?,000 90,119,447 26,605,000 34,480,000 6,517,847 67,602, $487,581,511 $487,581,511 OTHER TOTALS: ADVANCEREFUNDINGS (AR) $90,825,000 LEASE PURCHASE (LP) 92,707,036 URBAN RENEW AL (UR) 6,517,847 Oregon State Treasury 159 State Capitol Salem, Oregon I

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25 21 TABLE V STATE OF OREGONl BONDS ISSUED IN 1989 Dated Date Department Amounc Interest Rate Average Life (years) Q!<n, Obi; Energy 1989 Series A Energy 1989 Series B Energy 1989 Series C Housing 1989 Series A Higher Ed 1989 Series A Higher Ed Series B Higher Ed Series C Veterans' Tax Notes 5,000,000 5,700,000 1,000,000 7,000,000 25,762,979 12,320,000 3,125, ,000,000 $159,908, % (TIC) 7.14% (TIC) 9.50% (TIC) 7.22% (TIC) * * 7.02% (TIC)* 6.36% (NIC) * * (Taxable: * * Not Not R~v~nu!<; Single-Family 1989 Ser. A $25,000, % (NIC) + + EcQnQmik Dev!<IQ12m!<nt R~v~nu~ BQnds; JAE Oregon, Inc Stagg Foods, Inc Mt. Angel Bev. Refunding Mt. Angel Bev Puget Corporation Pale-Best Wright Business Fonns Neilson Metal Industry Flavorland Foods Lincoln & Allen Kyotaru Oregon, Inc Imperial Mfg. Inc L. D. McFarland $ 5,500,000 3,300,000 1,995,000 2,100,000 3,300,000 1,570,000 3,500,000 2,000,000 3,600,000 1,175,000 6,000, ,500 1,400.0QQ $36,307,500 Floating rate Floating rate 6.8% (NIC) 6.8% (NIC) 7.45% (NIC) 9.00% (NIC) 8.6% (NIC) 8.65% (NIC) 8.75% (NIC) 8.9% (NIC) Floating 1ENR 8.85% (NIC) Floating rate CertifiQiU~s Qf Particiuatfon; Hi. Ed. Series A $1,575, % (TIC) Does not include remarketings. * 1989 ORBAC Bonds, series A-C, sold as a group by negotiated sale. Average life and TIC is computed for the aggregate $41,208, total of the three 1989 ORBAC issues. + This short-term financing issue set for remarketing on 3/28/90. TIC = True Interest Cost NIC = Net Interest Cost TOTAL STAIB BONDS AND N01ES ISSUED TOT AL LOCAL GOVERNMENT BONDS ISSUED. TOTAL STATE & LOCAL GOVERNMENT BONDS ISSUED $222,790,660 $487,581,511 $710,372,171 Oregon State Treasury 159 State Capitol Salem, Oregon I

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27 23 TABLE VI TOTAL LOCAL GOVERNMENT DEBT OUTSTANDING BY COUNTY (As of December 31, 1989) Tax-Supported Self-Supporting General General County Obli1rntion Obliiration Bancroft Revenue Total Baker $1,063,349 $1,983,315 $450,000 $6,245,000 $9,741,664 Benton 20,346,085 10,125,660 12,728, ,495 43,317,377 Clackamas 108,440,152 7,270,000 22,544,438 6,333, ,587,661 Clatsop 11,176, ,484 1,500,000 10,292,995 23,355,155 Columbia 37,384, , ,000 69,447, ,835,069 Coos 29,310,071 1,515,000 1,355,000 16,030,011 48,210,082 Crook 843,764 1,340, ,183,764 Cuny 6,967,228 1,300, ,000 2,900,443 11,782,671 Deschutes 40,348,484 3,035,000 8,236,000 15,285,000 66,904,484 Douglas 12,211,209 8,589,000 2,171,229 24,311,946 47,283,384 Gilliam 27, ,480,000 3,507,000 Grant 2,469, ,968 2, ,600 3,370,946 Hamey , ,000 Hood River 1,453, , ,368,372 23,126,995 Jackson 39,510,833 4,115,000 11,807,054 6,615,181 62,048,068 Jefferson 4,966, ,715,452 17,681,552 Josephine 19,790, ,000 1,920, ,915,817 Klamath 7,493,362 5,595,000 1,560, ,000, ,648,362 Lake 469, , ,070 Lane 84,429, ,217 32,871, ,404, ,829,138 Lincoln 40,899,181 3,045,000 1,656,269 14,052,870 59,653,320 Linn 29,749, ,000 2,605,000 11,440,560 44,265,339 Malheur 5,255, , ,000 8,555,785 14,369,002 Marion 130,497,107 9,095,000 3,867,000 60,900, ,359,864 Morrow 4,320, ,023 75,000 78,424,216 83,760,359 Multnomah 278,123, ,659,024 32,003, ,974, ,759,206 Polk 12,577,960 85, ,000 4,455,047 17,243;007 Sherman 373, , ,096 Tillamook 13,420, , ,000 11,945,649 26,564,562 Umatilla 20,260,623 3,258,466 1,085,000 2,421,572 27,025,661 Union 6,091, , ,000 1,040,000 8,086,966 Wallowa 1,727, ,000 1,817,751 Wasco 9,017, , ,000 16,621,366 26,000,854 Washington 240,554,160 2,725,000 30,702,200 51,491, ,472,832 Wheeler 105, ,411 Yamhill ,QQQ TOTAL $1,270, 177,596 $211,243,732 $173,424,327 $1,556,239,596 $3,211,085,254 Oregon State Treasury 159 State Capitol Salem, Oregon I