Richardson Independent School District

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Tamsin Wilkins
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Contact Jeff Robert 325 North St. Paul Street Suite 800 Dallas, Texas 75201 214.953.8744 jeff.

1 Contact Jeff Robert 325 North St. Paul Street Suite 800 Dallas, Texas September 5, 2017 Series 2017 Parameter Refunding Information Richardson Independent School District

2 Presentation Topics Current/Historical Market Conditions Bond Issues to be Refunded Refunding Information/Analysis Parameter Refunding Bond Order Proposed Parameters 1

3 Historical Tax Exempt Interest Rates BBI 20 Yr Index BBI Index (%) Bond Buyer 20 Year GO Index September August 17, 2017 Bond Buyer 20 Year GO Index is a weekly index estimating the composite yield on 20 general obligation bonds rated "A" or better. This graph depicts historical interest rates. Future interest rates are dependent upon many factors such as, but not limited to, interest rate trends, tax rates, the supply and demand of short term securities, changes in laws, rules and regulations, as well as changes in credit quality and rating agency considerations. The effect of changes in such factors individually or in any combination could materially affect the relationships and effective interest rates. These results should be viewed with these potential changes in mind as well as the understanding that there may be interruptions in the short term market or no market may exist at all. BBI Index (%) /17/17 BBI Index: 3.57% 8/18/16-8/17/17 2

4 Bond Issues to be Refunded Bldg Bonds, Ser 2009 Bldg Bonds, Ser 2010 Bldg Bonds, Ser 2011 Bldg & Ref Bonds, Ser 2012 Principal Amount Refunded: $7,895,000 $7,850,000 $36,005,000 $38,770,000 Principal Maturities: Interest Rates*: 4.00% % 4.00% 3.00% % 3.50% % Call Date: 2/15/19 2/15/20 2/15/20 2/15/21 * - Average interest rate of bonds being refunded is 4.78% 3

5 Refunding Information/Analysis Richardson Independent School District Unlimited Tax Refunding Bonds, Series 2017 REFUND CALLABLE MATURITIES FROM SERIES 2009, 2010, 2011 & 2012 Assumed PSF Aaa/AAA Rates As of August 24, 2017 PLUS 0.15% ASSUMPTIONS POTENTIAL REFUNDING RESULTS Dated / Delivery Date: 10/1/2017 Gross Debt Service Savings: $ 16,289,191 First Coupon: 2/15/2018 Present Value Debt Service Savings: $ 7,459,207 Avg. Interest Rate on Refunded Bonds: 4.78% All-in True Interest Cost: 3.08% Total Principal Refunded: $ 90,520,000 PV Savings as a % of Refunded Principal: 8.24% PROJECTED DEBT SERVICE SAVINGS AT PSF Aaa/AAA RATES AS OF AUGUST 24, 2017 PLUS 0.15% CYE Refunded Debt Service Series 2017 Refunding Debt Service Projected 31-Dec Principal Interest Total Principal Interest Total Savings 2018 $ - $ 4,276,656 $ 4,276,656 $ 1,855,000 $ 2,988,856 $ 4,843,856 $ (567,200) ,276,656 4,276, ,000 3,703,450 4,273,450 3, ,000 4,272,056 4,502, ,000 3,689,650 4,499,650 2, ,575,000 4,236,956 5,811,956 1,170,000 3,652,300 4,822, , ,730,000 4,156,544 6,886,544 2,330,000 3,564,800 5,894, , ,240,000 4,042,772 7,282,772 2,855,000 3,435,175 6,290, , ,975,000 3,861,088 8,836,088 4,595,000 3,248,925 7,843, , ,255,000 3,619,506 8,874,506 4,870,000 3,012,300 7,882, , ,780,000 3,335,666 10,115,666 6,395,000 2,730,675 9,125, , ,850,000 3,013,281 9,863,281 6,465,000 2,409,175 8,874, , ,400,000 2,717,134 8,117,134 5,005,000 2,122,425 7,127, , ,460,000 2,448,006 7,908,006 5,045,000 1,871,175 6,916, , ,460,000 2,202,106 6,662,106 4,025,000 1,644,425 5,669, , ,340,000 1,958,788 7,298,788 4,860,000 1,446,600 6,306, , ,615,000 1,686,594 7,301,594 5,060,000 1,248,200 6,308, , ,735,000 1,388,919 8,123,919 6,110,000 1,024,800 7,134, , ,495,000 1,054,081 8,549,081 6,790, ,800 7,556, , ,930, ,338 7,644,338 6,145, ,100 6,653, , ,465, ,250 7,840,250 6,595, ,300 6,848, , ,985,000 99,625 4,084,625 3,035,000 60,700 3,095, ,925 Totals $ 90,520,000 $ 53,736,022 $ 144,256,022 $ 84,585,000 $ 43,381,831 $ 127,966,831 $ 16,289,191 4

6 Parameter Bond Refunding Order Allowed Under Section 1207 Texas Government Code Board delegates final pricing authority to Board selected Pricing Officer(s) Board establishes and approves bond sale parameters within Parameter Order: o Maximum Interest Rate o Minimum Savings Threshold for Refundings o Maximum Aggregate Principal Amount of Issue o Final Maturity Date o Expiration of Delegated Authority Delegated Pricing Officer can only approve refunding if Board parameters are met If Parameter is not met, District s outstanding debt service remains unchanged 5

7 Proposed Parameters Included in Bond Order Delegated Pricing Officers: Superintendent or CFO Maximum Principal Amount : $90,520,000 Maximum True Interest Cost: 3.75% Minimum Savings Threshold: Final Maturity Date: 2/15/37 Expiration of Parameter Authority: 180 Days 4.00% Present Value Savings Delegated Pricing Officers can only approve transaction if these parameters are met 6

Richardson Independent School District

Richardson Independent School District Contact Jeff Robert 325 North St. Paul Street Suite 800 Dallas, Texas 75201 214.953.8744 jeff.robert@firstsw.com May 1, 2017 $225,000,000 Series 2017 Parameter Bond Issuance Information Richardson Independent