Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
14 Answering Service
Agenda Item # TRUCKEE DONNER Public Utility District Workshop To: Board of Directors From: Mary Chapman, Administrative Services Manager Date: August 11, 2006 SUBJECT: Discussion of options for managing the District's after hours answering service 1. WHY THIS ITEM IS BEFORE THE BOARD For several years, the staff has been dissatisfied with the District's after hours answering service's ability to meet our needs to serve our customers. 2. HISTORY Last year I brought a proposal to the Board for your consideration to change our after hours call handling to Cooperative Response Center (CRC). I also asked Dan Otteson to come to the District to make a proposal to the Board describing their company and the services that they offer. At the time, there was concern that we might be taking business away from the local area. The Board indicated that we should communicate what we needed to Shirley at High Country to see if she could meet our requirements. We had many things on our plate at the time and I frankly did not have the time to work on this project. We did continue to complain about the level of service among ourselves and the need to do something. 3. NEW INFORMATION The week before last I received a phone call from Shirley at High Country who told me that she had sold her business to a company called Professional Communications Messaging Service, Inc (PCMSI) out of Erie, Pennsylvania. Shirley said that the reason she sold her business was because it was going to cost her at least $150,000 to upgrade her system and that she was having a very difficult time keeping employees. I asked Shirley who the contact was at the new company and for a phone number. I immediately brought up the company's website. I then called the company and spoke with the owner Jerry Uht, Jr. I asked Mr. Uht a lot of questions about his company, such as how many sites they had, who their clientele was, how many employees they had, how many phone answerers they had during various hours of the day, etc. Mr. Uht is the sole owner. He did not want to give me a list of his clients. He did not have any written material about his company other than what was on their website. He also did not provide me with the types of clients they serve. He did give me the names of the two electric companies they served. One was Warren Electric a small cooperative in Pennsylvania with 9,000 electric customers. The other was Rochester Gas and Electric who serves 300,000 customers. PCMSI only handles their overflow calls. They use an IVR system to handle all of their after hours outage calls. PCMSI does not interface with Rochester Gas and Electric's outage management system and Warren Electric does not have an outage management system. have called around to most of the local agencies. They use a variety of after hours call answering solutions. Several have been using High Country. The ones I spoke with will be looking for another service. Not everyone I spoke to knew that High Country had sold. Also, because of the nature of their businesses, they do not get the volume of calls that we get during power outages so their needs are different than ours. I have spoken with a company in Chico. Besides after hours answering, they are involved in a lot of other telecommunications business. They told me they were in direct competition with SBC Communications (now AT & T ??). This company did not answer for any electric utilities. So I'm coming back to propose once again that the District use Cooperative Response Center. They are the only company that we have come across that handles medium to small electric utilities as their core business. They have two sites for redundancy. They are not on the west coast which is something we found was a positive. When we are being slammed with storms, they probably will not be. They are not a huge call center like the ones that Sierra Pacific or PG & E might use or operate themselves. And, since they are a cooperative, they are managed by general managers from their membership. Steve, Jim, Ian and myself have been looking at the various vendors that attend electric industry conferences. We have all felt that CRC is really the right choice for our District. Additionally, they have interfaced their systems with other NISC billing systems and Minor and Minor outage management systems. They also know the terminology and lingo of the electric industry. Key elements needed in an after hours answering service: 1) Familiarity with the electric industry because they serve many clients in the industry; they are used to the critical nature of electric outages and are able to communicate to the crews and managers in electric utility industry language. 2) Has a backup site in case their system goes down. 3) Has sufficient staffing and the ability to bring on more staff as needed on short notice. 4) Can provide a backup site to the District in case of a building or local emergency. 5) Ability to interface with our outage management system so that outage predictions are taking place while we are waiting for the line crews to get here from Reno. 6) Ability for managers or crew members to view incoming phone calls (who from, locations and call back numbers) over the Internet on a realtime basis. Managers can regularly view our account activity online from their offices, homes or while out of town. 7) Provide backup call assistance during office hours particularly during outages. 8) Ability to interface with our customer billing system to be able to answer after hours calls from customers regarding their account. 9) Many more calls can be handled than when we are fully staffed. 10) Better outage call reporting; virtually no reporting now. 11) Will need to have an IVR system to help handle call overflow. IVR system should allow the superintendent or management employees to readily change outage information. Below I am proposing a few options: 1) Stay with PCMSI out of Erie, PA the answering service Shirley sold her business to. Initially the costs will be similar to High Country. They said they need to know our business needs better before proposing changes. Payment to High Country over last 12 months was approximately$7,000. 2) Transfer to Cooperative Response Center in Wisconsin as a full member. See attached breakdown of charges from CRC. While using their service is more expensive, they will provide the District with a much better level of service to our staff and our customers. 3) Transfer to Cooperative Response Center on a trial basis. CRC has a reduced entry fee if the District want to try them on a trial basis. I will have that available at the meeting. 4) Continue to research for alternative after hours answering services. Taking Orders/ Order Taking Service- PCMS Inc. Page I of I PRE KS310 lAL CLIENT LOG IN: ' I4I1tIIAlli€ Voice Fax and Email Messages Taking Orders/Order Taking Service ■ Custom Order Entry Service, Single or Multiple Products using a Catalog,Advertising or Website. ■ 24-hour/7-day a week Order Taking Service ■ Professional, State-Of-The-Art Order ;.•:-x,• : Processing Services ■ Personal 800/888/877/866 numbers supplied, Or use your number. Personal and Professional Telephone Answering and Order Taking, whether using a Website or Conventional Advertising and Catalogs. When using a Website for E-Commerce, our advanced ORDER ENTRY system enables our telephone receptionists to access your Website with the caller on the line assisting them in product information and the placement of orders. Our internal system enables clients not using a Website to customize their account by placing their product or catalog information in our flexible database. IX Professional's staff can also assist in the customization of products and catalogs being placed in our database. Our fast, state-of-the-art systems f �° r5 y enable our receptionists to place orders directly onto your site, or within our database,where your products are displayed by ITEM or PRODUCT number " . with brief descriptions to allow our receptionist to professionally describe each item. Our intelligent order forms prompt our receptionist to fill in each necessary section, name, address,telephone number, shipping address, < � credit card information, item(s), quantity, etc.While the receptionist enters the h information, our database adds the necessary shipping and handling charges, is applies applicable discounts and taxes,verifies credit card information and supplies our receptionist with a grand total to present to the caller. Completed orders are then faxed, E-Mailed or downloaded directly into a host computer system. All Messages and Orders taken by our receptionists are recorded into a voice logging system allowing our clients to verify information whenever necessary. Answering Service•Voice MaillUnified Messaging•Order Entry Services• Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials• REQUEST CONTACT Professional Communications Messaging Service,Inc. Toll Free:888-776-2661 •Fax:800-362-7329•E-mail:tas ,Pcrosi.com Return to Home Page ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:Custom Internet Applications http://www.perosi.com/RTML/order-entry.html 7/27/2006 Nationwide paging Page 1 of 1 ;dK*:�Kf, 3 A CLIENT LOG IN: � � Voice Fax and Email Mess. Nationwide Paging Srf�i�?�+r,•.< ''. .fr • :r r.v Nationwide Two-Way Acknowledgement Pagers PCMSI now offers two-way pagers that actually communicate, indicating whether the pager is in range and, or turned on. If the pager is not in range or is not on,the system will store the waiting messages for up to 96 hours, while continuously looking for the particular pager to send an acknowledgement that it is on and in range. These pagers can also be used to send acknowledgements back to PCMSI's messaging service and can also send e- mail messages to any address, or another two-way pager.These pagers work locally and nationwide. Unlike traditional paging service,these messages look and wait for a response from the pager. This ensures the pager carrier receives the message and the sender receives an acknowledgement in return. (Serviced provided by PCMSI and Metrocall) Answering Service•Voice Mail/Unified Messaging•Order Entry Services•Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials•REQUEST CONTACT Professional Communications Messaging Service,Inc. Toll Free:888-776-2661 •Fax:800-382-7329•E-mail:tas@PcrosLcom Return to Home Page ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:custom Internet Applications http://www.perosi.com/HTML/nationwide-paging.html 7/27/2006 PCMSI Regional Telephone Directory Page 1 of 1 gx�� PROFESSION. y.; MMU. € PCMSI Regional Telephone Directory Corporate Office: 105 Poplar Street Erie PA 16507 Erie PA 814-459-2000 Rochester NY 585-935-5200 Jamestown NY 716-483-7898 Cleveland OH 216-831-8343 Pittsburgh PA 412-341-9030 New York, NY 212-258-2400 Buffalo NY 716-559-5200 Toll Free 888-776-2661 Youngstown OH 330-788-3303 Answering Service•Voice Mail/Unified Messaging•Order Enter Services•Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials-REQUEST CONTACT Professional Communications Messaging Service,Inc. Toll Free:888-776-2661 •Fax:800-382-7329•E-mail:tas _perosi.com Return to Home Pave ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:Custom Internet Applications http://www.perosi.com/HTML/directory.html 7/27/2006 PCMSI testimonials Page 1 of 1 P .O1 CLIENT LOG IN: ................... ....... Voice Fax and Email Messa es ........ . ....... ....... .... .... PCMSI Customer Testimonials "Over the last 10 years, I have found Professional Messagings'Answering Service to be efficient, cost effective and a great convenience. I would recommend Professional Messagings'Answering Service to anyone." -Thomas K.Mathew,M.D. "Our after hours calls are very important to us and knowing that Professional Messaging is there is very comforting. I would not hesitate to recommend Professional Messaging to anyone needing a quality answering service." -David Lemunyon,American Sterilizer Corporation "For more than 10 years Professional Messaging has kept my company updated with the most efficient pagers at a reasonable cost. This combined with the most efficient and courteous answering service, has helped my business grow and remain the#1 ice machine leasing company in the area!" -Brian Celmer,Ice is Nice,Inc. Answering Service•Voice Mail/Unified Messaging•Order Entry Services• Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials•REQUEST CONTACT Professional Communications Messaging Service,Inc. Toll Free:688-776-2661 •Fax:800-382-7329•E-mail:tas@perosi-com Return to Home Paae ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:Custom Internet Applications http://www.perosi.com/HTML/testimonial.html 7/27/2006 Answering Services from PCMSI - customized telephone answering service utilizing the L. Page I of I answering service•unified messaging•order enter services• nationwide pagers SM. AL ' 41 CLIENT LOG IN: � 4.0 lM INC Voice Fax and Email Messa es w f<.. ..f ... ........,, f..,. f.., .. Article: Why Use PCMSI Answering Service? People and Technology Working with People The affordable answering service provided by PROFESSIONAL COMMUNICATIONS MESSAGING SERVICE, INC., is nationally recognized as the most innovative and technically advanced. Our services include Answering Service, Order Entry, ` Taking Orders, On-Line Order Taking. Order Processing, 9 • ... ''>. ssing, Voice Mail, Fax Mail, Virtual Office, Unified Messaging and innovative Custom Messaging Services. Our professional, courteous telephone receptionists r take a true interest in the satisfaction and success of each one of our clients. Matched with our state-of-the- .,, Y"F art systems,wireless and internet technologies, our service has survived the test of time. Let our professional telephone receptionists and automated voice and data processing systems do the QUICK LINK to form page to request contact-just tell us what work for you, at rates that are truly affordable.After you need and we'!I reply promptly and professionally. touring our web site, contact us for details on how we can best serve you. Answering Service•Voice MaillUnified Messaging•Order Entry Services•Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials•REQUEST CONTACT Professional Communications Messaging Service,Inc. To//Free:888-776-2661 •Fax:600-382-7329•E-mail:tas@pcmsi.com ©2001-2006 Professional Communications Messaging Service,Inc. Webmaster:Custom Internet Applications http://www.perosi.com/ 7/27/2006 Answering Service Page 1 of 3 n J, IROFE IO CLIENT LOG IN: CIMUIIC# II'€ Voice Fax and Email Messages AW"d Sam4 IN-0 Y ..n. ......r .... .. Answering Service 1. Are you experiencing a shortage of staff at critical times? 2. Do you lose customers when they call after business hours? 3 ••:•. ., Ica::; 3. Do potential customers hear busy signals or numerous rings when they call? Let PCMSI solve these and other routine business problems. Serviced by the most advanced computer-based telephone answering equipment in the industry. Every call is answered promptly, in your personalized answer phrase J .. by professional receptionists who represent your company as if they worked in your - office. Our Telephone Answering Service staff are always Our state-of-the-art systems ensure that the proper information is taken and available to take your calls delivered accurately and efficiently to one or multiple persons or locations. 24 hours a day! FEATURES: ■ 24-HOUR SERVICE : Our service is available 24 hours a day, 7 days a week. Call forward your calls to us all the time, after hours, on an as needed basis,when your phone lines are busy, or ring more than a pre-determined amount of times. This insures you always stay in touch with your customers. ■ PERSONALIZED ANSWERING: All of your calls are answered in your company name. Once our receptionist answers your call, all of the information you have supplied to us is shown on the computer screen,telling us how you want each call handled, and what actions we are to take. ■ FLEXIBILITY: Our customer service representatives can make changes and update your account as your requirements dictate. OPTIONAL TELEPHONE ANSWERING SERVICE ENHANCEMENTS PRE RECEPTIONIST ANNOUNCEMENT ■ Customized greeting that is played prior to our receptionist answering your line indicating office hours, etc. (Screens calls and saves time prior to our receptionist answering.) ■ Announcements can be based on the time of day and the day of the week. ■ Announcements that give the caller the option to choose which department they wish to be connected to. VOICE MAIL (Unified Messaging) ■ Calls taken by our receptionist are recorded into a voice mail box. ■ Voice Messages can be sent to an email address and played over the speakers of your personal computer. ■ Voice and Fax Message can be sent to one or multiple email addresses. ■ Callers can call your voice mail and leave a recorded message press"0"and talk to one of our receptionists or be routed to an office, home or cellular telephone. http://www.perosi.com/HTML/telephone-answering.httnl 7/27/2006 Answering Service Page 2 of 3 ■ Time dependent greetings that change based on the time of the day and day of the week. ■ Gives you the ability to bypass the receptionist and access your new messages immediately. ■ Will page a pager at pre-set time intervals,to notify you of new messages. If a new message is not picked up,the voice mail will page another pager, or call one of our receptionists indicating the message has not been accessed. FAX AND EMAIL MESSAGE DELIVERY ■ Fully computerized faxing and emailing of all messages. ■ Faxes and email can be sent at pre-determined times and days of the week, or immediately after taking a call. ■ Receive hard copies of all of your messages via fax or email. ■ Email to one or multiple addresses. ■ Saves time, by not having to call in to check for messages. INTERNET ACCESS ■ Our receptionists have the ability to click on your Website for more information or to assist the caller. ■ Orders, question, appointments and help desk functions can all be done using the Internet and our clients own Website. . k ALPHANUMERIC TEXT MESSAGE DELIVERY , # ■ Detailed messages are sent directly to pagers, cellular phones and various wireless devices,showing the caller's name, phone number, and message. The device carrier can immediately respond or hold the call in the pager memory for later action. ■ Enables the wireless device carrier to be almost anywhere and immediately receive messages from the service. f ■ Text Messages are numbered and time stamped in sequence and can be faxed emailed as a backup. BILLING Professional's billing is based on only the amount of"live receptionist'time utilized.We do not bill per call. Our monthly charge is a cumulative total of receptionist time only while on your line. If a call lasts 10 seconds,the client is only charged for the 10 seconds. This method provides incentive to answer calls immediately and provide professional and efficient handling of every call,while saving normally 15 to 25%over other methods of service. WHAT OUR CUSTOMERS HAVE TO SAY: "Over the last 10 years, I have found Professional Messagings'Answering Service to be efficient, cost effective and a great convenience. I would recommend Professional Messagings'Answering Service to anyone." -Thomas K.Mathew,M.D. "Our after hours calls are very important to us and knowing that Professional Messaging is there is very comforting. I would not hesitate to recommend Professional Messaging to anyone needing a quality answering service." -David Lemunyon,American Sterilizer Corporation "For more than 10 years Professional Messaging has kept my company updated with the most efficient pagers at a reasonable cost. This combined with the most efficient and courteous answering service, has helped my business grow and remain the#1 ice machine leasing company in the area!" -Brian Celmer,Ice is Nice,Inc. http://www.perosi.com/HTNIL,/telephone-answering.html 7/27/2006 Answering Service Page 3 of 3 CREDIT APPLICATION(print, complete and fax to us) -INFORMATION FORM(print, complete and fax to us) INFORMATION FORM(complete on-line and send via email) Answering Service-Voice Mail/Unified Messaging-Order Enter Services-Nationwide Pagers PCMSI Regional Telephone Directory-Testimonials-REQUEST CONTACT Professional Communications Messaging Service,Inc. To//Free:888-776-2661 -Fax:600-362-7329-E-mail:tas�perosi com Return to Home Page ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:custom Internet Applications http://www.perosi.com/HTML/telephone-answering.html 7/27/2006 Voice mail and fax mail services, unified messaging Page 1 of 2 ..... .. .. ..... ...... fj PR.0 I , CLIENT LOG IN: ' MMUINCATt�?�€'� Voice Fax and Email Messaaes Voice Mail/Unified Messaging Our advanced Voice and Fax Mail service is the latest in automated message processing systems. From the customary Voice Mail Box to a Unified Custom Message Center,we have the ability to create a custom Messaging Service to fit your exact needs. Our messaging network , supplies callers with the option of leaving a message, routing to other Voice Mail Boxes,to cell phones, our 24-hour receptionist service, pagers, etc. And these options can be changed on demand or preprogrammed by the time of day and day of the week. Voice and Fax messages left in our system can be retrieved over the telephone, through the x internet or delivered to any e-mail address, and/or wireless devices. Features provided through Professional's Voice and Fax Mail service: r3- ■ Personal, local, and/or 800 number provided. Use our number or call forward yours. ■ Voice Mail/Fax Mail services provided on the same or separate telephone number. ■ Voice and Fax messages have the ability to automatically forward to an e-mail address(es) ■ Voice messages can be saved and played on the speakers of your Personal Computer ■ Fax message can be saved, displayed, and/or printed out on your Personal Computer ■ Accepting, storing and forwarding faxed messages. Faxed messages can also be retrieved by calling from a fax machine or forwarding the message to a fax telephone number. ■ Voice and Fax broadcasting to"internal"Voice Mail Boxes or"outside"telephone numbers. ■ Automated Wake Up call service. ■ Pager cascading. (Upon receipt of a message the Mail Box will page a pager for a predetermined period of time and begin paging another pager if no one has picked up the message.) IN Message cascading. (Messages automatically transfer to another Mail Box or to our receptionist, either automatically or on non-receipt of message.) ■ Menu Mail Box. (Callers are given a menu, i.e., Press 1 to leave a message, Press 2 to leave an emergency message where someone will be paged, Press 3 to speak to a live receptionist, etc,) ■ Sub mail boxes for multiple departments and/or personnel ■ Order taking mail box services with fax on demand for customer information inquiries ■ 800 number mail boxes for the executive on the road,with options to be paged nationwide, receive faxes, or have callers speak to our receptionist. ■ Routing to one of our 24-hour receptionists for"live"telephone messaging and, or message dispatching to wireless devises. ■ Transfer or broadcast messages among multiple mail boxes. IN Time dependent features and greetings based on time of day and day of the week. ■ Call forward Office, Home or Fax lines when lines are busy, no answer or immediately. ■ "MsgPickup.com": By simply typing www.ms_gPickup.com from any computer in the world, with internet access, our clients have the ability to retrieve personal email messages, review messages from Professional's Messaging Service, review and print Faxes and listen to Voice Mail messages. Our clients can also reply to messages that require a response. Next time you find yourself in Rome, Italy , Miami Beach, Florida, or simply at home or the office type www.msgpickup.com to listen and read your waiting messages. � «4.::< http://www.perosi.com/HTML/unified-messaging.html 7/27/2006 Voice mail and fax mail services, unified messaging Page 2 of 2 (Voice Messages are played over the speakers of the Personal Computer. Prior registration for this service is required.) Constant Touch Constant Touch is a convenient,full-service communications package that is especially useful for mobile professionals or traveling office staff. Constant Touch gives you complete and simple control over all communications through a single telephone number. Services include direct connection to the caller,voice and fax mail, e-mail delivery of messages, revert to one of our receptionists and pager notification of messages and waiting callers. Answering Service•Voice Mail/Unified Messaging•Order Entry Services•Nationwide Pagers PCMSI Regional Telephone Directory•Testimonials•REQUEST CONTACT Professional Communications Messaging Service,Inc. To//Free:886-776-2661 •Fax:800-382-7329-E-mail:tas@perosi-com Return to Home Pace ©2001-2005 Professional Communications Messaging Service,Inc. Webmaster:Custom Internet Applications http://www.pemsi.com/HTML/unified-messaging.html 7/27/2006 Cooperative Response Center,Inc. OUR VISION CRC will consistently exceed member expectations by being the highest quality,best value contact call center and central station in the energy cooperative and security industries. OUR NNSSION CRC is a leading,values-based customer contact center and central station which enhances the services of its members throughout the U.S.by focusing on the human side of technology. OUR VALUES Member-Driven Service Excellence Fiscal Responsibility Employee-Focused Communication Community Involvement Innovation Continuous Improvement Teamwork OVERVIEW By focusing on the human side of technology ,CRC has merged the benefits of personalized service with the efficiencies provided by technologically advanced computer and telephony systems.We provide customer contact center and central station alarm monitoring solutions that reflect our members'desire for transparent best-in-class service. i i HISTORY CRC is a nationwide cooperatively owned and operated*7 call center and central station.Founded in 1942,CRC has steadily increased the size and scope of its operation with offices in Austin,Minnesota and Dunlap, Tennessee.By combining resources,CRCs members have developed levels of service far beyond what they could offer individually, SERVICES&TECHNOLOGY By focusing on the human side of technology,CRC has merged the benefits of personalized service with the efficiencies and cost savings of technologi- cally advanced computer and telephony systems.CRCs support systems are continually updated to satisfy stringent customer and technological require- ments.CRCs products and services include the following •Customer Contact Center •Energy Dispatch,Customer Care •Central Alarm Monitoring Station •FirstCalr Medical Monitoring,FirstCaIr Security Monitoring "€ •CRCLink'e-Communications Software TRAINING CRC pays special attention to its recruitment,hiring,training and retention strategies for best-of-class customer service.Trainers provide new Customer Service Representatives(CSRs)with over 16o hours of educa- tion in initial industry background and contact/monitoring center training. Our dedicated Quality&Member Services Coordinator evaluates each CSR's performance monthly through call monitoring,and utilizes industry-specific grading criteria. If necessary,additional training and coaching is provided. CRC stresses career growth opportunities by providing a comprehensive pay and fringe benefits program including incentive compensation and pay-for- performance/merit-based-salary adjustments. 1 Cooperative Response Center,Inc. ENERGY DISPATCH CPC's Energy Dispatch services combine inbound customer care aad outage notification for utilities. Combined with our experienced and professional crew dispatching this infor- mation. CPC allows snore of your consumers'ph one calls to be answered with no busy signals during OULIgeS, satisfying your consumers and pinpointing Outage locations more quickly. OUTBOUND CREW DISPATCH Dispatchers follow specific procedures when grouping outage tickets and notifying an on-call crew. As necessary, dispatchers will contact additional crew, relay additional or priority outages,and notify emergency personnel. CRC voice and data communication with crews include cellular, telephone/radio interconnect, and voice/data-paging capabilities. In the event of widespread outages, dispatchers have the ability to record a customized announcement listing all affected areas,which provides consumers quick access to up-to-date information regarding outage statuses. DIRECT CREW CHECK-IN Dedicated toll free crew check-in telephone numbers route directly to CRC's professional dispatching team, a highly trained subset of the overall Customer Service Representative (CSR) staff. CUSTOMER CARE CRCs Customer Care sermes ",elp you stppo,rlt your oAisin!_.7 (-,cnSuf;iers by -it- I .", . -ho ,s a day. answering their account-related questions and enrolling ,fir. 24 tl( We can accommodate your custoo,ter I s after hoors needs �'Vd!70L;t_VOU fi0e0iog to take )n a -ograrn offers supl,-,ort for o any industries dditional staff. CRCs Costofner Care pf 17 and applicatiolls. ELECTRIC UTILITIES CRC supports a wide variety of electric related calls,such as power outages,partial power situations,emergency information(i.e.,broken pole,live wires, fire, life support),account balance inquiries,disconnected accounts,and other general member service program questions. Outage and message call tickets are immediately transferred by internet/FTP based communication or by fax to the utility's personnel for dispatch or other follow-up. PROPANE AND NATURAL GAS Because of the emergency nature of propane or natural gas leaks, CRC follows a detailed verification process to determine the urgency of calls, alerts callers to certain dangers related to the situation,and immediately dispatches listed repair personnel. In addition, CRC meets the drug and alcohol testing requirements established for natural gas call answering by the Department of Transportation. DIRECT BROADCAST SATELLITE(DBS)OW DIRECTV With immediate,high-speed access to NRTC and DirecTV,CRC provides comprehensive programming and troubleshooting support for subscribers. Our dedicated CSRs are trained to order pay-per-view events,change programming,answer billing questions,set-up new service, disconnect service,and provide basic troubleshooting. • DIVERSIFIED SERVICES In addition to supporting energy and telecommunications industries, CRC provides general customer care for other applications as needed. CRC is also equipped to perform outbound customer satisfaction and market research surveys, as well as outbound Phone Notification System(PNS)messages for specific calls, such as planned outages, disconnect notices, load control notification,general announcements,and more. R- C 'li Cooperative Response Center,Inc. HIGH VOLUME TELECOMMUNICATIONS NETWORK An organization is able to route a portion of,or all of their customer calls to CRC.Three commonly used call routing options include:basic call forwarding;AT&T advanced toll-free routing(which seamlessly transfers between terminating calls at the utility and CRC's net- work)or,publishing a new toll-free number which terminates solely on CRC's network. CRC's advanced telecommunications network is comprised of multiple T1 lines for inbound and outbound voice and data traffic—virtually eliminating busy signals. Integrated Services Digital Network(ISDN) features provide Automatic Number Identification(ANI),which lists the originating telephone number and allows CRC to immediately match the incoming caller to their current account information. INTEGRATED CUSTOMER INFORMATION SYSTEMS Integrated customer information provides CRC with access to callers'current account infor- mation.This access increases customer service by offering 24-hour continuous support for account problems or inquiries. Customer information is updated by new databases being for- warded to CRC on a regularly scheduled basis. If a real-time update is desired,CRC can electronically communicate with an organizations remote database over the Internet. Interface templates are standard for communicating with organizations served by customer information providers such as the National Information Solutions Cooperative(NISC)and Southeastern Data Cooperative(SEDC). COMPREHENSIVE CALL HANDLING CRC's outstanding contact center services are driven by live customer service representatives (CSRs),Interactive Voice Response(IVR)technology,and data communications over the Internet or telephone. Callers are initially greeted with a brief custom announcement,which identifies the organization's name.Depending on the level of call volume and number of calls in queue,callers are either routed directly to a CSR for immediate response,or given the option to process their call in the IVR system. (CRC's telephone systems provide detailed call trafficking in order to manage the queue). Additional CSRs and supervisors, managers,and directors are on-call 24-hours a day to complement CRC's scheduled staff during a peak calling period.A CSR follows a verification process with each ticket to deter- mine the level of urgency for documenting information, such as:emergency or life threaten- ing situations,multiple or priority accounts,billing inquiries,etc. If the ticket requires dis- patching,our dedicated dispatchers will process the outage tickets appropriately. DETAILED REPORTING TOOLS A service ticket is generated for all calls handled by CRC that require follow-up for addi- tional customer service,dispatching,or a return telephone call. Daily tickets and summary reports include information for all call tickets generated by CRC. All tickets are automati- cally date and time stamped.Tickets can be customized with preferred data fields and can be sorted.Tickets and summary reports are communicated electronically over the Internet through CRCLink®or can be sent by fax or email. Outage ticket and report detail includes outage and dispatch information with calls received or initiated,crew dispatched,outage restoration,and cause code information. 3 CRC ' Cooperative Response Center,Inc. CRCLine, a proprietary e-communication and outage management software program, distributes outage and message call information from CRC to its customers'locations. It is designed to provide an interface between a customer's information system and CRC's local database, in order to facilitate electronic communication, outage analysis, and report management. USER-FRIENDLY TROUBLE TICKET GENERATION CRCLink'is a single user,or networkable,32-Bit Windows application written with Microsoft Visual Fox Pro. It is a user-friendly tool for quickly accessing consumer account information, posting account/event notes,as well as entering outage and message tickets. CUSTOMIZABLE INFORMATION PAGES ENHANCE CUSTOMER SERVICE Information pages can be created and customized in CRCLinV for sales,service,procedures and general information. In addition, staff contact information is easily accessible for users when needing to relay information. DETAILED OUTAGE REPORTING BASED ON CONNECTIVITY Outage tickets for electric utilities are summarized and sorted based on system connectivity information. Connectivity information can be as simple or detailed as necessary. Information is also date and time stamped in CRCLink . SEAMLESS INTEGRATION WITH updates for all consumers from SEDC to INFORMATION SYSTEMS CRCLmk* CRCLink®can be installed as either a single PC •Receiving billing disconnect updates from or network license, which allows interface with SEDC to CRCLinV existing information systems. This connection •Receiving accounts receivable information can be utilized for initial customer service call for a single consumer from SEDC to handling or setup for basic reporting purposes. CRCLinV The software has an open database architec- ture (ODBC compliant) and can communicate • 1MIILSOFT INTERFACE j data seamlessly with other applications over the CRCLink'can automatically pass outage informa- I Internet at near real-time customizable intervals. tion into Milsoft's outage management system, Interface programming has been written by DisSPatch.The interface CRC and the following information system includes the following transaction: providers to facilitate electronic communication •Transferring new outage call information of consumer and outage information: (account number,date/time)from CRCLink' to DisSPatch to create outage detail • NATIONAL INFORMATION SOLUTIONS In addition,through Milsoft's standard export, COOPERATIVE(NISC)INTERFACE its engineering model can be imported into NISC has created both an automatic and manual CRCLink®,providing connectivity information process for updating CRCLink'with the latest for outage calls. consumer information.The automatic process is an add-on feature available through NISC and it APPLIED TECHNOLOGY provides seamless integration of CRCLink and SOLUTIONS(ATS)INTERFACE NISC,consumer data.The manual process exports The automatic interface with ATS is a one-way IP- the data to a file which CRCLinV can then based communication link that includes the import.NISC and CRC have also jointly created following transaction: an automatic,one-way outage interface.This •Transferring new outage call information interface currently includes the following transac- (account number,date/time)from CRCLinV tion: to ATS,to create outage detail •Transferring new outage information (account number,date/time) from CRCLink' AUTOMATIC METER READING(AMR) to NISC,to create outage tickets SYSTEMS-OUTAGE REPORTING CRCLink"is capable of intercepting an ASCII • SOUTHEASTERN DATA COOPERATIVE text file generated by the following automated (SEDC)INTERFACE meter reading devices,which provides power out- The automatic interface with SEDC is a two-way age information: IP-based communication link and includes the fol- •NRTC Util-Link lowing transactions: • Itron DCI Sentry •Transferring new outage call information •American Innovations AIM (account number,date/time) from CRCLink* tea, across to SEDC to create outage detail CUSTOM INTERFACES •Receiving general file maintenance CRC can also design and implement custom information(member address,telephone,etc.) interfaces based on your needs. 4 CRC ' Cooperative Response Center,Inc. At CRC, we are pleased to provide contact center services to nearly 200 electric utilities across the United States. As a Cooperative, we value these relations and work extremely hard to provide exceptional service. WHAT OTHER COPS HAVE TO SAY ABOUT CRC: "CRC is one of the most effective tools ever developed by, and for, the electric cooperative industry. It's a great example of the power of cooperation among cooperatives." Minnesota Valley Cooperative Light& Power, Montevideo, MN Pat Carruth, General Manager t "Central Electric Cooperative (CEC) is committed to providing quality service to our members 24 hours, 7 days a week. CRC has assisted CEC with meeting this goal,taking informing calls and providing dispatch services in the evening,weekends, and holidays. A critical element to making a decision to partner with CRC i was that communication with our members would be seamless(between CEC and CRC), and that CRC be viewed as an extension of CEC.We place an extremely high value on quality member service and CRC has successfully met the expectations of CEC. Staffing an office for a swing or graveyard shift can be very diffi- cult,and CRC has provided a cost effective solution." Central Electric Cooperative, Redmond, OR Dave Markham, Chief Operating Officer "We have been pleased with the call center services offered by CRC. In my opinion, the key to your success is that CRC employees are trained and managed using the same`Cooperative'philosophy as Southwest Arkansas EC employees. You have given us the ability to extend our member friendly services. When one of our members uses CRC, they are talking to a Co-op employee." 40 Southwest Arkansas Electric Cooperative, Texarkana, AR Wayne Whitaker, General Manager "Member frustration occurs whenever the power is off.When the member constantly gets a busy signal when 4 trying to report an outage, that frustration multiples. Before we started using CRC for our after hours outage dispatching, I received numerous complaints each week following outages which had just been restored. Since we started using CRC, member complaints have ceased concerning our phone answering process. CRC offers a very cost effective and efficient alternative to in-house after hours phone answering and outage dis- patching services. CRC employees who answer the phones are courteous,professional, and help bolster the image of the cooperative with their caring attitudes. Nueces Electric Cooperative, Robstown, TX John Sims, Executive Manager "Prior to joining CRC,Tri-County Electric Cooperative had its own in-house dispatchers to answer the tele- phone and dispatch the appropriate person or crew. ...Since these employees were not superhuman, the serv- ice to our members was not improved by having our own after hours dispatchers—only the costs to the mem- bers rose.The move to CRC provided: i)more than one person to answer the telephone after hours; z)mem- bers received better service since CRC has the ability to adjust the number of personnel available based on weather and needs; 3) no need to have employees return to office to answer telephones during an outage; 4) Tri-County did not have to purchase additional telephone equipment for Caller ID and audio call handling during high volume periods; S)total cost of providing after hours service was greatly reduced,which resulted in lower costs to the member." Tri-County Electric Cooperative, Hooker OK Jack Perkins, Chief Executive Officer y N. New Jersey t MarylaM �o J ®uenax CRC Districts CRC*cF1c " * © CRC Board Members* Revised 1115ro5 ALABAMA KANSAS OHIO WISCONSIN kee Electric Cooperative(8/94) 1. ocatlon,Inc.(5/05)Ark Valley Electric Cooperative(6/04) 1. Buckeye REC(3l99) 1. AdamC sokumbia Electric Coop.(1 V92) 1. Chero 2. Sand kee Ele Electric Cooperative(10f00) 2. Butler Rural Electric Cooperative Ass 2• Consolidated Electric Cooperative(5/94)- 2. Barron Electric Cooperative(2/03) 3. Tombigbee Electric Cooperative(10/02) 3. Wheatland Electric Cooperative(4/97) 3. Derive REC(2/03) 3. Central Wisconsin Electric Coop.(i t/96) KENTUCKY 4. Energy Cooperative(2/96) 4. Chibardim Telephone Coop.(12103) ARIZONA 1 Flaming Mason Energy Cooperative(11/03) 5. Fireiande Electra:Cooperative(12l00) 5. Chippewa Valley Electric Coop.(10/92) . 1. Sulphur Springs Valley Electric Coop.(3103) 6. Frontier Power Company(3/98) 6. Clark Electric Cooperative(12/92)0. 7. ARKANSAS 2. Inter-County RECC(12102) 7. Guernsey Muskingum Electric Coop.(6/02) 7. Dalryland Power Cooperative(1/991 1.Mississippi County Electric Coop.(5102) 3. Shelby Energy Cooperative(sue) 8. Hancock-Wood Electric Cooperative(5l97) S.Dunn County Energy Cooperative(10192) Electric 2.Southwest Arkansas Coop.(2102) 4. South Kentucky RECC(7/03) 9.Holmes-Wayne Electric Cooperative(10/01) 9.Eau Claire Energy Cooperative(10/92) LOUISIANA COLORADO 10.Logan County Power A Light(7198) tO.Jedkson Electric Cooperative(10l92) 1. Washington St.Tammany Electric Coop.(1103) 1. Poudre Valley REA(1/03) MAINE 11.WraiMvtedina REC(1/97) 11.Jump River Electric Cooperative(2103) FLORIDA 1. Fax islands Electric Cooperative(2!'88) 12.Midwest Electric Cooperative(11/01) 12.Oakdale Electric Cooperative(11/92) 1. Talquin Electric Cooperative(10101) RYLAND 13.North Westem Electric Cooperative(1/03) 13.Oconto Electric Cooperative(&S9) MA GEORGIA 1. RYLAND Maryland Electric Cooperative(1/03) 14.Pioneer REC(5197) 14.Pierce-Pepin Coop.Services(11192p 1. North Georgia EMC(9/99) ary 15.Union REC(8194) 15.Polk-Bumett Electric Cooperative(6/99)' 2. Southsm Rivera Energy(12(02)- MICHIGAN 16.Washington Electric Cooperative(SM1) IS.Prim Electric Cooperadve(10/92) IDAHO 1. Alger-Deft Electric Cooperative 02/96) OKLAHOMA 17.RESCO(2/03) 1. Salmon River Electric Cooperative(4/00) 2. Alpena Power Company(12M3) 1. Central EIeCNC REC(3/04) 18.Richland Electric Cooperative(11/94) IWNOIS 3. Clovedand Electric Cooperative(6/94) 2,Cotton Electric(REC 19.RiveAand Energy Cooperative(11l92) 1. Clay Egyptian Electric Cooperative(ile() 4. H Midwest n rgyCounty Electric Coo/04) 5195) 3.Oklahoma Electric Cooperative(12/04) 20.Scenic Rivers Energy(8/00) 2. Egyptlen Electric Cooperative(1l05) 5. Midwest Energy Cooperative Live(1) 4.Trl-County Electric Cooperative(10/99) 21.St Croix Electric Cooperative(11192r 3. Illinois Rural Electric Cooperative(2/03) S. Presque Isle Electric Cooperative(10/95) OREGON 4. Jo-Carroll Electric Cooperative(11192) MINNESOTA 1.Central Electric Cooperative(3102) 5. MJM Electric Cooperative(8/02) 1. Cooperative Light 8 Power Association(11192) 2.Coos-Curry Electric Cooperative(11/04) 6. Norris Electric Cooperative(12/01) 2. Freebom-Mower Cooperative Services 00/92) 3. Lens Electric Cooperative rafte) 7. Shelby Electric Cooperative(8197) 3. Lyon-Uncoln Electric Cooperative 01/92) 3, Lane LVANIA B. Southwestem Electric Cooperative(4/94) 4. McLeod Cooperative Power Association(2l93} 1, Northwestern RECA(9/04) INDIANA 5. Meeker Cooperative Light&Power(10/00) 2. United Electric Cooperative(8/94) 1. Bartholomew County REMC(7/94) 8. Minnesota Valley Cooperative Ught 8 Power(1l98) SOUTH CAROLINA 2. Central Indiana Power Cooperative(8103) 7. Minnesota Valley Electric Cooperative(1193) 1. Coastal Electric Cooperative(7l05) 3. Decatur County REMC(3100) S. Nobles Cooperative Electric(2/93) SOUTH DAKOTA 4. Fulton County REMC(10/96) 9. People's Cooperative Pewees( 1. Bon Hoe Yankton Electric(1/94) 5. Jay County REMC(9/94) 10.Renville-Sibley Coop.Power Asssoc.oc.(7/93) 2. Ga my-Urdon Eleddc Cooperative(1/94) 6. Noble REMC(7199) 11.Todd-Wedena Electric Cooperative(1053)' �qEE 7. Pulaski White Rural Telephone Coop.(7/05) 12.Traverse Electric Cooperative 13193) TENNE � Valley Electric Coop.(11/98Y e. Rush Shelby REMC(3199) 13.Th-County,Electric Cooperative(1 d9 181 1. Seq 9. Tipmont REMC(5/94)' MISSISSIPPI 1. Cherokee County Electric Coop-(12/02) AS 10.United REMC(5194) 1. Nortlxxntral Mississippi EPA(1/05) 2 Deer Smith Electric Cooperative(12/02) 11.Whimwater Valley REMC(4194) 2.Yazoo Valley Electric Power Assoc.(7105) 3. Deaf S Electric Cc Coop ra(1202 12.WIN Energy 1 11 MiSSOURI 4. Robstown Utility Systems(3105) IOWA 1. Citizens Electric Corporation(M01) 5. Swisher Electric Co-op,Inc.(2/04) 1. Akamakee-Clayton Electric Cooperative(11/92)2. Farmers Electric Cooperative(10/95) VIRGINtA 2. Butler County REMC(3�e) 3. Laclede Electric Cooperative O V02) 7. ASN Electric Cooperative(Mot) 3- Calhoun County Electric Cooperative(6104) NEBRASKA 2. BASIC Earle Cooperative 101) 4. Franklin REC(8l95) 1. Southern Public Power District(3103) 3- Community Electric Cooperative(12103) 5. Guthrie County RECA(11/(10 NEVAOA 4. Northern Neck Electric Cooperative(9/04) 6. Hawkeye Tri-County REC(10/92) 1. ML Wheeler Power,Inc.(6/05) S. Prince George Electric Coop.(10/00)* 7. Maquoketa Valley Electric Cooperative(10/92) 2. Valley Electric Association(1105) 6. Rappahannock Electric Cooperative(1104) S. Midland Power Cooperative(1/93) 3. Wells Rural Electric Company(2l96) WASHINGTON 9. Nishnabotna Valley REC(5/99) NEW JERSEY 1. Inland Power 8 Light Company(3/94) 10.Pella REC(11/97) 1. Sussex REC(10/98) 11.Prairie Energy Cooperative(11193) NORTH CAROLINA 12.Prairie Holdings(7100) 1. Blue Ridge EMC(2/04) 13.Southern Iowa Electric Cooperative(10/95) NORTH DAKOTA 14.Woodbury County REC(10102) 1. Case County Electric Cooperative(4/02) .............. ;: . Data Movement ` S CRC Call Takao r_ 7TER CRC TCPU CUSTOMER DESKTOP COMPUTER DATASAS.SERVER -interet Map Viewing , FTP S RVER XML CAL LOGS CRC FIREWALL ------------------ 0 m r•a x _Y _- On Call Lnernan \ ------ Home Camlwler (Woh or VPN) PUD FIREWALL CRC Outage PUD WEBERVICES h�hf GU' WSC IVUE CIS Call Integration N DATABASE (ORACLE) : ^t;? IMS INTERNEI MAPPING SERVER RESPONDER SERVER (URACLEI Outage Prediction / i PUD+WEB CLIENT PUD Call Takers CALL CENTER jx:"`'?; .!!!!I!ii DESKTOP COMPUTER <::: > ;:;;:-;;: On Call Uneman PUD WEB CLIENT CALL CENTER DESKTOP COMPUTER Review of costs/pricing associated with CRC's Energy Dispatch Initial Membership Initial Membership Fee to CRC $ 2,500 Never expires/non-refundable and One of either of the following: ❑ Class A Equity Investment $10,000 Pays 6%annual return/refundable or ❑ CFC Guaranty $10,000 Note of guaranty Class B Equity Investment $10,000 Pays 7%annual return/refundable (optional—requires also selecting the initial Class A investment) Start-up Costs Set-up fee $ 530 (Includes cost to build information pages, set-up and install software, interfaces,etc., and one day of staff training at Truckee Donner PUD) Travel Expenses $ 900 (estimate) (Actual travel expenses incurred by CRC employee for the one-day training sessions at Truckee Donner PUD) Estimated Usage Costs Based on: • The active electric meter count of 12,139 (taken on 10/21/05) • Estimated per-call charges by national average Monthly Annual Fixed base fee of$0.10 per meter per month $1,214 $14,567 Variable call volume charges (estimated) $1,457 $17,480 Integration software licensing(estimated) $ 300 $ 3,600 Total $2,971 $35,647 Consideration when Evaluating Costs • Capability to process excessive call volume • Value in providing quality customer service • Reduced number of staff required to work after—hours outages • Efficiency in sorting/grouping outage data based on connectivity data • Time spent adding outage data to existing outage management system • Emergency communication: o Having a back-up that's not susceptible to local disaster o Ability to receive and relay critical information quickly • Proactively provide useful outage information to consumers • Additional automated options, reducing staff/task time • CRC provides 800 numbers and pays all toll charges on those lines Response to Request for Proposals Underwriting Services Truckee Donner Public Utility District August 7, 2006 TRUC EEI NNER PUBLIC u tog Me=rlil Lynch Global Markets&Investment Banking Group Public Finance Group-Western Region Global Markets&Investment Banking 101 California Street,Suite 1225 San Francisco,CA 94111 PH:415 676 3210 Merrill Lynch 415 676 3351 August 7,2006 Mary Chapman Administrative Services Manager Truckee Donner Public Utility District 11570 Donner Pass Road Truckee,California 96160 Re: Request for Proposals—Underwriting Services Dear Ms.Chapman: On behalf of Merrill Lynch, we are pleased to present our qualifications to serve as underwriter for the Truckee Donner Public Utility District ("TDPUD"). We believe that Merrill Lynch provides a unique combination of strengths, making the Firm an ideal candidate to participate in TDPUD's Series 2006 bond financing. We believe that the combination of our primary banking team, capital markets desk and extensive distribution, both nationally and in California, will benefit TDPUD in achieving the lowest possible interest cost for its transaction. Below are key issues for TDPUD to consider during its selection process: ■ Merrill Lynch can Bring a Depth of Banking and Capital Market Expertise to the Table— In the past two years, our Western Region banking team has tripled. Since 2005,we have added several new California issuers to our client roster including East Bay Municipal Utility District, Los Angeles Department of Water and Power, San Francisco Bay Area Rapid Transit, and the Cities of Pasadena and Sacramento. This past month we participated in transactions for the Modesto Irrigation District and the Sacramento Regional County Sanitation District.Our banking team is complemented by a capital markets group that has executed interest rate swaps with a notional value of over $125 billion in 2005 alone. This experience provides our clients "value- added" ideas and an ability to move quickly to complete transactions in any type of market environment. ■ Unmatched Municipal Bond Distribution — In the national retail market, Merrill Lynch is ranked No. 1 in the primary and secondary market sales of municipal bonds. We maintain over 670 retail offices and 28 institutional sales offices in the U.S., including 74 offices in California with 1,700+Financial Advisors(brokers)covering 650,000 retail accounts.Our Truckee presence includes three retail offices and almost 70 Financial Advisors. We believe that our retail system, combined with our industry leading institutional distribution system, will allow Merrill Lynch to obtain the broadest possible distribution on TDPUD's upcoming transactions. ■ Dominant Capital Base and Competitive Bond Performance—The size and stability of Merrill Lynch's capital base remains unrivaled in the industry. With over$175 billion of total consolidated capital and over $2.3 billion of"excess" net capital, Merrill Lynch has consistently ranked as the most capitalized firm on Wall Street. We have proven our ability and willingness to commit Merrill Lynch capital on behalf of our issuing clients. Merrill Lynch is the perennial No. I competitive underwriter nationally, leading the competitive underwriting market in each of the past 16 years with a total of$165.8 billion in competitive underwriting since 1992. The combination of our extensive market knowledge, strong capital base and far-reaching distribution system enables Merrill Lynch to establish aggressive pricing with the understanding that we will be able to place the bonds readily, and inventory any unsold balances if necessary. We hope that the quality of the attached response is indicative of our desire to serve as TDPUD's underwriter, and we look forward to having the opportunity to dedicate the full complement of Merrill Lynch resources to serving TDPUD. Please feel free to contact either of us if you have any questions or require any additional information relating to this proposal. Sincerely, --- Greg Dawley Ed Burdett Managing Director Vice President 101 California St, Suite 1225 350 South Grand Ave.,Suite 2800 San Francisco,CA 94111 Los Angeles,CA 90071 415-676-3210 213-217-4504 cc. Sandra McDonald;McDonald Partners TRUCKEE DONNER PUIILIC UTILITY Di STRICT 1.Please comment on whether you believe the District should pursue a refunding;of the Series 1996 COPS. Merrill Lynch is pleased to submit its response to Truckee Donner Public Utility District's ("TDPUD") Request for Proposals for Underwriting Services. We look forward to the opportunity to serve TDPUD and begin a long-standing investment banking relationship. SERIES 1996 REFUNDING CERTIFICATES OF PARTICPATION We believe TDPUD should consider a refunding of the Series 1996 Certificates of Participation. At current interest rates, TDPUD can generate approximately $372,000 or 4.59%present value savings on an insured basis. This equates to $33,000 in annual gross savings. We assumed an upfront bond insurance premium of 25 basis points of total debt service. Alternatively, TDPUD could pursue a refunding on an uninsured basis. In the current market, an uninsured refunded would produce approximately $321,000 or 3.95% present value savings. Below we have provided a chart detailing savings levels for insured and uninsured stand-alone refunding transactions: Series 1996 Refunding Results Insured Uninsured .................................._......._....... Fixed Rate Bonds Fixed Rate Bonds _. Dated/Delivery Date 11/1512006 11/15/2006 Refunded Principal $8,115,000 $8 115 000 Refunding Principal $8 Y015,0000_._. $8 065 000mmyµ All-in TIC 4.49% 4.57% Average Annual Savings $33,000 $29 000 PV Savings tiI $321.000 TDPUD can continue to monitor the market to track the savings of the refunding. We recommend pursuing the Series 1996 refunding to the point where interest rates rise such that present value savings dips below 3%. We ran a sensitivity analysis on an insured refunding and determined that rates would need to increase by approximately 20 basis points before savings levels on the 1996 CON would erode below the 3%threshold. Adding a refunding component to the already planned new money transaction would be beneficial to TDPUD for the following reasons: ■ Costs of Issuance— By engaging in a new money transaction, TDPUD is already paying the associated costs of issuance on a transaction. Layering in $8 million of refunding bonds would minimally change these costs of issuance. Additions to disclosure documents as well as utilizing a Verification Agent would not drastically increase these costs. In fact,the increase in upfront costs will easily be offset by the$30,000+in first year savings levels from the proposed refunding transaction. Increasing Debt Service Coverage — TDPUD is $2,5°°,000 legally constrained by coverage levels it must maintain. Although TDPUD has strong coverage levels, additional debt after this transaction is completed will $2,°°°'°°° put a strain on these levels and make issuing any 51.500,000 substantial future debt more limited. By refunding the Series 1996 Certificates of Participation, the TDPUD will reduce annual debt service by approximately $30,000+ and improve coverage levels. The graphic sw°wo provided to the right shows debt service levels on the proposed 2006 transaction. N N Historically Flat and Low Yield Curve—Since 2001, �R.�b�aa .'�Ea 5YW„ ® �, �,, ,�,DWbt S,rvv,�Y,,,, we have enjoyed a historically flat and low yield curve. Many economists are expecting that the yield curve will return to historically steep levels with increasing rates in the mid to long end of the curve (where the bulk of the refunding bonds will be placed to achieve level savings). }}���� Page 1 64�Merrill Lynch TRUCKEE DONNER PUILIG UTILITY 01STRIGT This economic cycle may be coming to an end and TDPUD should complete this refunding while it is still economical. 2.Do you foresee any obstacles in the District's financing plan? Please comment on the use of multiple revenue streams to support the transaction and whether you believe bond insurance will be available and beneficial to the District. FINANCING PLAN We believe that TDPUD's financing plan as stated in the RFP, is extensive and demonstrates TDPUD's prudent management of its debt portfolio. We applaud TDPUD's management for taking an active and pre-emptive approach to raising rates and pursuing extra surcharges to better the community and improve the water distribution system serving the Truckee area. We do not see any obstacles in the District's financing plan and we believe the bonds will be well received. Of course, there is always the risk that interest rates will increase. However, since TDPUD is planning to move quickly, the District should capture the favorable market. Due to the flatness of the yield curve, TDPUD could consider a more back-loaded structure for the portion of the financing used to construct the system improvements. For a minimal increase in interest cost,additional principal could be placed after 2022 when the Series 1996 COPS mature to level out the total debt service secured by the net revenues of the water system. Working in combination with TDPUD, your financial advisor, and bond counsel, we would be happy to examine the useful life of the assets financed, and determine how far we could extend the average life of the bonds and still meet the useful life tax restrictions. To further improve TDPUD's credit in the eyes of bondholders, TDPUD could consider increasing its debt service coverage covenants on its water system. Currently TDPUD has covenants stipulating 1.1Ox coverage levels. Bumping up the coverage level to 1.25x or greater will strengthen TDPUD's credit in the eyes of bondholders. Many similar issuers, East Bay Municipal Utility District (1.60x), Santa Clara Valley Water District (1.25x) and the Metropolitan Water District of Southern California (target coverage of 2.00x) have already positioned their debt portfolio to implement higher coverage levels and we would suggest implementing a similar strategy. We do not envision coverage levels being a financial obstacle to this financing;however, we recommend that TDPUD consider increasing its legal constraints. MULTIPLE REVENUE STREAMS Merrill Lynch has a municipal credit specialist available to advise clients about specific credit and bond insurance issues. John Hallacy, Managing Director, has spent 16 years at Merrill Lynch as well as time as a credit analyst at Standard and Poor's (six years) and recently at MBIA. Mr. Hallacy has significant experience rating and analyzing water and electric utility bond issues and will bring this expertise to the benefit of TDPUD. Based on the TDPUD's 2005 Audited Financial Statements, we believe the revenue streams available to the proposed financing, coupled with the approved rate and customer surcharges increases, will be sufficient to support an underlying rating as high as the "A-" level. Upon issuance of the proposed new COPs, the interest expense coverage will drop from approximately 1.40x to 1.30x revenue coverage. This expected coverage, coupled with the approximately $8 million in unrestricted assets in the water system should provide adequate revenue levels and liquidity to support this underlying bond rating. AVAILABILITY OF BOND INSURANCE With total municipal issuance down in 2006, bond insurance companies are competing very aggressively to win insurance bids. We believe TDPUD's financing could be insured for a premium of 20-30 basis points of total debt service. Based on an assumed bond insurance cost of 25 basis points and current credit spreads, it makes economic sense to insure the proposed new money and refunding transaction. As senior manager, Merrill Lynch would provide TDPUD with an in-depth insurance analysis. Prior to pricing the COPS, our underwriting desk would aggressively market TDPUD's bonds and credit story to our financial advisors (brokers). After compiling a firm spread between insured and uninsured bonds, Merrill Lynch quantifies whether the use of bond insurance is economically beneficial to TDPUD on a maturity-by-maturity basis. We start by computing the cost of using insurance per maturity. Comparing this cost to the associated spread between the insured and uninsured bonds, we derive whether maturities should be insured or not. Page 2 Merrill Lynch TRUCKEE DONNER PUBLIC UTILITY DISTRICT As an example, we provide a table below detailing the steps utilized in the analysis. The following analysis assumes an estimated spread of 15 basis points between TDPUD's insured and uninsured bonds. The estimated insurance premium is 25 basis points of total debt service. Using the 2008 through 2010 maturities for demonstration purposes, the analysis shows that is beneficial to insure these maturities. Not/ Insurance Sreakeven Unadjusted Insurance Economic Insured Uninsured Insurance Adjusted Yield Yield Cost to Year Rate Yield Price Rate Yield Price Insurance Cost Per$100 Price To maturity To maturity To maturity Insure? 11/15/08 7200% 100.521 4. 0% 3.8700% 100.241 0.2,,50% 0.269556 99.971444 4.014467% 3.870022% 0A44446% YES 3.9300% 100.191 0.250% 0.279556 99.911444 4.031500% 3.930349% 0.101151% YES 1111509 4.00% 3.7800% 100.608 400% YES 11/15110 5.00% 3.8300% 1 5.00% 3.9800% 103.697 0.250% 0.299444 103.39756 4.06100% . . The two columns on the far right are the important factors in the analysis. The"Insurance Cost to Maturity"associated with the two maturities is less than the associated spread between insured and uninsured transactions, therefore it is economical to insure that maturity. As senior manager, Merrill Lynch would provide this insurance analysis on the entire financing. Page 3 b4U Merrill Lynch TRUCKEE D ONNER PURL[C UTILITY 01STRICT 3.Please describe your firm's experience in selling tax-exempt California Revenue Bonds. MERRILL LYNCH CALIFORNIA REVENUE BOND EXPERIENCE rr. Present Merrill Lynch has significant experience in structuring and marketing tax- Bond Lead exempt revenue bond financings both nationally and in California. Since �Full Cre(lit to Lead Manager) January 1, 1980,we have senior managed 791 tax-exempt California Revenue Bond transactions in totaling $40.643 billion. In 2006 year to date, Merrill Citigroup Lynch ranks 2"d in California tax-exempt revenue bond transactions having F$1,234 8U3 executed 10 issues for$1.6 billion for an 11% market share Most notably, ?wean. r Merrill Lynch senior managed a $241.08 million fixed rate bond transaction UBS Securities for the Los Angeles Department of Water and Power, Series 2006 A-1 in Stone 8 February of this year. The transaction utilized an innovative "barbell" Youngberg structuring plan whereby LADWP issued retail bonds in the front end of the JP Morgan $1.088 curve (2008-2015) and both serials and term bonds amortizing from 2026 through 2036 to meet strong institutional demand and lock-in historically lowi� long-term yields. Three case studies of our recent California Revenue Bond transactions are highlighted below: `' Los Angeles Department of Water and Power $241.08 million Series A-2 Water System Revenue Bonds Relevance to TDPUD: The case study described below provides TDPUD with an example of Merrill Lynch's unique structuring ideas and retail distribution strengths for a water utility senior managed bond issue. On February 2nd, 2006 Merrill Lynch successfully priced$241.08 million of Water System Revenue Bonds on behalf of the Los Angeles Department of Water and Power. Since being selected as a member of the Department's underwriting pool in early 2005, Merrill Lynch bankers worked to create an innovative financing plan to meet the Department's goals.The 2006 financing was the first step in a"duration optimized"capital plan devised to achieve the lowest possible cost of funds and maximum coverage levels in a rising rate environment. Merrill Lynch worked with the Department and its financial advisors to structure the Series A-1 and A-2 bonds as,a"barbell",placing retail bonds on the front end of the curve and the remainder past 2030. In the future, financings in 2009 and 2010 will fill in the medium maturities as rates rise providing the Department enhanced pricing flexibility. In adopting this strategy, the Department received authorization to bond for the next two years of capital programs ($500 million total) in order to lock in historically low rates. Although Merrill Lynch only received senior manager credit for half of the transaction, the Department relied on our bankers to provide structuring analytics for the entire $482.165 million financing. Over time, the "duration optimized" structure will produce a lower aggregate cost of funds and higher coverage levels than traditional level debt service financings. After working for months to structure the transaction leading up to the pricing, Merrill Lynch underwriter's executed skillfully placing the Series 2006 A-1 bonds at the lowest possible spreads to MMD. Although the market moved against the Department following a Federal Reserve rate hike, Merrill Lynch went to market with an aggressive scale generating over $50 million in retail orders. The next day our underwriter's utilized bifurcated coupons from 2008 to 2015 and in 2037 resulting in oversubscribed orders for several maturities. Despite a deteriorating market, Merrill Lynch was able to improve its already aggressive scale lowering the yield on the 2040 term bond by three basis points. Our firm-wide execution on behalf of the Department represents the range of"value added" services we provide to issuers. Merrill Lynch banker's provided strategic structuring solutions resulting in a lower cost of capital in the context of a multi-year capital plan. During the pricing, Merrill Lynch demonstrated our ability to optimally place the bonds with targeted investors. The combination of these services enabled the Department to meet its goals and achieve the lowest possible cost of funds for the water system. Page 4 Merrill Lynch TRUCKEE DONNER PUBLIC UTILITY DISTRICT East Bay Municipal Utility District3 $300,000,000 Water System Subordinated Revenue Bonds, Series 2005A (Fixed Rate Bonds) �� $325,000,000 Water System Subordinated Revenue Refunding Bonds, Series 2005B1-4(Weekly VRDOs) $100,000,000 Water System Subordinated Revenue Bonds, Series 2005C1-2 (Weekly Auction Rate Securities) Relevance to TDPUD: Our work with East Bay Municipal Utility District demonstrates Merrill Lynch's ongoing assistance to major northern California utility clients. In June 2005, Merrill Lynch served as a co-manager, remarketing agent and broker-dealer on East Bay Municipal Utility District's (the "District") $725 million Water System Subordinated Revenue and Refunding Bonds, Series 2005A - C financings. The Series 2005A fixed rate bonds were used to finance improvements to the Water System, the Series 2005B1-4 Weekly VRDOs were used to advance refund the District's Series 1996 and Series 1998 Bonds through a 62.3% of LIBOR fixed payer swap, and the Series 2005C1-2 Weekly Auction Rate Securities were used to retire outstanding commercial paper. Merrill Lynch participated as a co-manager on the $300 million Series 2005A fixed rate bonds and was awarded $75 million of the Series 2005B-4 Weekly VRDOs, $115 million of the LIBOR fixed payer swap and$50 million of the Series 2005C-2 Weekly Auction Rate Securities. Over several months,Merrill Lynch and the finance team briefed the District on the different risks(basis and tax) and the appropriate index to utilize associated with the interest rate swap. The District and financial adviser agreed on a 62.3% of LIBOR swap since it provided them with a strong correlation with historical BMA Index and generated the most savings. Sacramento City Financing Authority $95,900,000 2006 Tax-Exempt Capital Improvement Revenue Bonds, Series A $55,235,000 2006 Taxable Capital Improvement Revenue Bonds, Series B (Community Reinvestment Capital Improvement Program) Relevance to TDPUD: The Sacramento City Financing Authority and Merrill Lynch have worked together numerous times over the past five years. The example provided below demonstrates Merrill Lynch's ability to create an innovative financing utilizing multiple funding sources and pooled assets. In June 2006, Merrill Lynch served as senior-manager on the Authority's $151 million, 2006 Capital Improvement Revenue Bonds, Series A& B. The Bonds were issued in two series, $95.9 million of tax-exempt bonds and$55.235 million of taxable bonds. The financing implemented the Sacramento City Council's recommendation of a"quality of life"bond issuance for the City and its citizens. Bond proceeds were used for the construction of and improvements to libraries, theaters, museums, parks, transportation facilities, community centers, animal shelters, playgrounds, auditoriums and other infrastructure projects within the City of Sacramento. The City may also provide loans and grants for the Crocker Art Museum Expansion, Arts Rehearsal Space and Haggin Oaks Economic Development area. In addition, the City entered into four advance repayment agreements with the Redevelopment Agency of the City of Sacramento on their North Sacramento,65th Street,Army Depot and Richards Boulevard redevelopment areas. This is the sixth time the Authority has gone to market with its innovative master lease program, which Merrill Lynch helped to create in 1999. The City's unique master lease program allows it to use a pool of leased assets,rather than a single leased asset, to reduce the magnitude of abatement risk. The City covenants to maintain not less than 50% of the pool of assets comprising the Master Leased Property as "Essential Assets." These "Essential Assets" include, generally, property necessary to provide municipal services related to the health, safety and welfare of the citizens of the City, including police,fire, transportation, solid waste and City support and administrative facilities. Assets which are classified as "non-essential" include leisure, cultural and recreational facilities including City-owned parks, golf courses,City library facilities, museums and learning centers. The program sets aside assets equivalent to 125%of the outstanding lease "principal," thus creating a cushion for abatement. In an event of substantial interference, the City has also covenanted that it will use its best efforts to substitute unencumbered assets from a master inventory of assets. Page 5 Merrill 6ynch TRUFUILCKEE UTILITY The financing was structured so that portions of the debt service not supported from various loan repayments will be offset by extraordinary revenues. These revenues were generated by the expiration in 2007 of the recent Educational Revenue Augmentation Funds ("ERAF") shift and a portion of the revenue growth differential resulting from the State's replacement of the vehicle license fee reduction with property tax revenues. Merrill Lynch secured bond insurance from AMBAC on a majority of the tax-exempt series. The tax-exempt bonds were well received by retail investors buying over$15 million of bonds or over 16.4% of the series while the taxable bonds were sold primarily to institutional investors. Page 6 Merrill Lynch TRUCKEE DONNER PUILIC UTILITY 01STRICT 4.Please provide a list of the individuals who will be assigned to work with the District. Describe the role of each individual and include the telephone and facsimile number of each member of the primary banking team. Include a brief resume of each individual's education,training and experience. We have assembled a primary finance team of West Coast-based public finance professionals and New York-based underwriters to provide TDPUD with the highest level of service and execution. Our primary banking team will be composed of San Francisco and Los Angeles public finance professionals. Ed Burdett Managing Director and Head of the Western Region, will be responsible for coordinating the resources of the entire firm to the TDPUD's transactions. Greg Dawley, Vice President, will bring his extensive California Utility experience to all of the TDPUD's financings. Susan Hinrichs, Vice President, will be responsible for day-to-day transaction structuring and deal execution for TDPUD. Ed, Greg and Susan will all be supported by John Houlberg, Analyst. John Hallacy, Managing Director and the Firm's Credit Specialist,will assist in the rating and marketing process of TDPUD's debt. All underwriting will be handled by our New York specialists: Rob Barber, Managing Director and Co-Head of Public Finance,will handle all of TDPUD's fixed rate bond issuances. Relevant contact information and experience is shown below: EDWARD BURDETT Role: Head of Western Region and Resource Manager Managing Director Related Experience: Over 29 years of municipal finance experience. Previously worked at Salomon Smith lol California Street Barney,Goldman,Sachs&Co.,and eBondTrade.Mr.Burdett is a specialist in utility finance having worked with Suite 1225 numerous municipal water and power issuers in the state including the California Department of Water Resources, San Francisco,CA 94111 Metropolitan Water District of Southern California, Sacramento Municipal Utility District, Northern California 415-676-3210(phone) Power Agency, TANC, M-S-R Public Power Agency, Silicon Valley Power, Modesto Irrigation District, and 415-676-3251 (fax) Turlock Irrigation District. r35 urdett aml.com Back round: B.S.—Geor 'a Institute of Technology,MBA—University of Virginia. G DAWLEY Role:Water Specialist President Related Experience:Mr.Dawley has over 13 years of experience working in the municipal finance arena,having South Grand Ave, worked at Banc One Capital Markets,J.P.Morgan and serving asan Assistant Chief of Staff to the Los Angeles 2800 Mayor Richard Riordan. Mr.Dawley focuses primarily on clients in the general municipal sectors. Recent clients Angeles,CA 90071 include Colorado Springs Utilities, Los Angeles Department of Water and Power, East Bay Municipal Utility 213/217-4504(ph) District, Southern California Public Power Authority,Northern California Power Agency,M-S-R Power Agency, 213/217-4530(fax) Modesto Irrigation District, the State of California, The Metropolitan Water District of Southern California, gregory_dawley@ml.com Sacramento Municipal Utility District and Arizona Water and Infrastructure Finance Authority. Back round: B.A.—University of Michigan..MPP—University of Southern California. SUSAN HINRICHS Role:Transaction Banker Vice President Related Experience: Ms. Hinrichs joined Merrill Lynch in 2002 with prior experience in municipal finance at 101 California Street Goldman Sachs. She has over 9 years of experience in the municipal finance industry and has executed bond Suite 1225 financings for various general obligation,education,public power,and health care issuers.Ms.Hinrichs specializes San Francisco,CA 941 l 1 in municipal transactions with unique credit structures and complex financing requirements. Ms.Hinrichs' utility 415-676-3214(phone) experience includes financing for the State of California Department of Water Resources, Turlock Irrigation 415-676-3351 (fax) District,Modesto Irrigation District,City of Tucson,City of Mesa and the City and County of Honolulu. susan hinrichs ml.com Back round: A.B.—Stanford. Registered NASD-Series 7 and 63. JoHN HoULBERG Role:Support Banker AnalL46 st Related Experience: Mr. Houlberg joined Merrill Lynch in 2004. He will provide day-to-day analytical, California Street, quantitative and deal execution support for the team. His experience includes working with issuers such as the 5 City of Tucson Water System, East Bay Municipal Utility District, Modesto Irrigation District, Los Angeles cisco,CA 94111 Unified School District, the Sacramento City Financing Authority, Sacramento Regional County Sanitation 3219(phone) District,San Francisco Bay Area Rapid Transit,the Cities of Tucson,Mesa and Phoenix. Mr.Houlberg has two 3351(fax) years of municipal finance experience. lber l.com Back round:B.A.-Universi of California,Davis. ROBERT BARBER Role: Fixed Rate Underwriter Managing Director Related Experience: Mr.Barber joined Merrill Lynch in 1982. He is currently Lead Negotiated Underwriter and 4 World Financial Center Co-head of Public Finance.In these capacities he is also ember of the senior team that manages the Municipal a m m Markets Division.In addition Mr.Barber plays a critical role in the origination and structuring of issuer derivative 9 Floor New York,NY 10080 business,having previously,managed the Municipal Derivative Trading Desk.Mr.Barber has executed over 1,00 212-449-5081 (phone) interest rate swap transactions and related derivative products totaling over$50 billion, and has managed a swap 212-449-3733(fax) book that on average contains$10 billion of outstanding swaps. From 1982 through 1986,Mr.Barber served as robert—barber@ml.com Manager of the Tax Exempt Money Market Underwriting Desk where he managed over$15 billion in notes and put bond offerings. Back round: Washington&Lee Universi . Registered NASD—Series 7,53,and 63. Page 7 Merrill Lynch T1RUCKEE IDOPUBLIC UTILTY NNER JOHN HALLACY Role:Credit Specialist I Expertise on all credit related issues. Managing Director Related Experience: Mr. Hallacy has 19 years experience as a credit analyst and was in charge of rating Denver Public Finance Water while at S&P. He started his career at S&P having spent considerable time evaluating all kinds of municipal 4 World Financial Center debt. At the time of his departure in early 1984, he was Vice President and a co-manager of the General New York,NY 10080 Obligation,Lease and Special Tax area. In addition,he was a contributing member of the credit criteria committee 212-449-559 ph and was a chairperson of numerous rating committees. He was also a regular contributor to Credit Week. After 6 212-449-988 fax S&P,Mr. Hallacy spent one year at FGIC and was subsequently at B.I.G. from its inception to its acquisition in john.hallacy@ml.com 1990. Mr. Hallacy joined Merrill Lynch at the start of 1990. He participates i s industry associations n numerou including M.A.G.N.Y. and BMA and has given speeches to these groups. He is a past Chairman of the BMA Credit Research Committee representing the firm. Background. BA—Columbia University Page 8 Merrill Lynch TRUCKEE IDONNER 5.Please provide a fee quote that includes all components of the gross spread. Please indicate what portions of the quote may he considered fixed. Please assume that the Financial Advisor has developed a financial pro-forma and will take the lead in preparing the Districts rating presentation. In estimating underwriter's counsel expenses.please note that Stradling Yocca will draft the preliminary and final official statements. Please indicate which firm you would consider using for underwriters'counsel. FEES Supporting and serving TDPUD is a high priority for Merrill Lynch. Accordingly, we are committed to providing TDPUD with the highest quality investment banking and marketing services at the lowest possible cost. The tables below contain Merrill Lynch's fee proposal for a$27 million fixed rate bond issue. S27.000,000 Bond Fees ror 00+ Expense Details .• Fixedate Estimated Fees —.$0.00 Estimated Underwriter's Counsel $30,000.00 Management Fee l,l Bond Market Assoc.Fees 810.00 Average Takedown 5.00 1,199.00 Other Expenses(item 56 ized to right) 1. Munifacts,Electronic Order,CUSIP and DTC 0 Day Loan Interest(@ 1.00%of parl360) 750.00 . Underwriting Fee DALCOMP 1,620.00 L.Total Upfront Fees $6.56 4,050.00 Syndicate Costs (1)Mercill Lynch would propose an escalating takedown scale to weighted Merrill Lynch Out-of-Pocket Expenses(2) 3,000.00 average of$5.00 per bond 790.00 (2)Includes federal express,conference call,travel,etc. Cal Debt Advisory and Cal PSA $42,219.00 Total Underwriters'Expenses 1.5E Total Per Bond We would propose using Cecilia Dyba of Sidley Austin Brown&Wood LLP(San Francisco)as Underwriter's Counsel. Underwriter's Counsel fees are included in Merrill Lynch's expenses detailed above. Merrill Lynch would counsel that TDPUD would suggest for underwriter's also be counsel on the proposed sed transaction. on pleased to consider any ... LLP Cecilia Dyba 555 California St.,Suite 5000 San Francisco,94104 TEL:415-772-1269 Email:cdyba@sidley.com Page 9 Merrill Lynch TRUCKEE DONNER PUIILIC UTILITY DISTRICT 6.Why should TDPUD select your firm to senior manage the proposed transaction? We would like to highlight several Merrill Lynch qualifications that we think are particularly relevant to TDPUD's upcoming fixed rate financing and that we would hope TDPUD would take away from our proposal. 1.KNOWLEDGE OF AND COMMITMENT TO CALIFORNIA UTILITY ISSUERS Merrill Lynch's proposed finance team has extensive transaction experience with Northern California utility issuers. Ed Burdett and Greg Dawley have executed senior-managed transactions for California utility issuers such as Northern California Power Agency, East Bay Municipal Utility District, California Department of Water Resources, Sacramento Municipal Utility District, Transmission Agency of Northern California, Los Angeles Department of Water and Power, Southern California Public Power Authority, Turlock Irrigation District, Modesto Irrigation District, M-S-R Power Agency and Sacramento Regional County Sanitation District,among others. Their extensive California utility financing experience will be brought to bear on TDPUD's transaction. Our New York based underwriters have similar utility experience having underwritten this year's Los Angeles Department of Water and Power transaction and solidly placing a large amount of the transaction with retail investors. We plan to bring our significant California utility experience to TDPUD in completing a successful and cost effective financing. 2.DEDICATION TO MUNICIPAL ISSUERS AS REFLECTED BY COMPETITIVE UNDERWRITING LEADERSHIP 4i As highlighted to the right, in 2005 Merrill Lynch was the#1 underwriter of bonds in the competitive market, underwriting over $15.24 billion of competitively-issued bonds for issuers nationwide. This ranking demonstrates that we consistently and aggressively put our capital, and our extensive national retail distribution system to work to provide issuers with the absolute c w.uP ,2D8 lowest cost of capital in the market. We will continue to do so in the future, and believe this dedication and commitment to providing issuers with the ►or".." lowest fixed-rate interest costs in the market will translate into providing. 5.22 TDPUD with the lowest possible interest costs for its upcoming financing. In „a,F6uneY1 4.91 2006 year to date, Merrill Lynch is ranked #1 once again in competitive o 3 �2 ,s underwriting nationwide with a 23% market share having purchased 111 �a transactions. We believe there are three primary reasons why Merrill Lynch's competitive underwriting leadership is relevant to TDPUD's bond transactions: 1. Pricing Leadership — In competitive bond offerings, the lowest cost of capital means everything: the underwriter that provides the lowest yield for the issuer on pricing day wins. As a result of being the leading competitive underwriter nationally and within California,we offer the best new issue pricing day in and day out, and we use this knowledge to help our negotiated issuers attain the lowest possible cost of capital. As a negotiated issuer, TDPUD's bond sales would be led by the very same underwriting, sales and trading operation that has resulted in our#1 competitive underwriting position every year in the past 14 years. 2. Ability to Commit Capital — Unlike most of our competitors who usually bid on competitive deals with an underwriting syndicate, we bid on competitive deals alone. This requires significantly more capital and represents a great deal more risk—which is further demonstration of our commitment to using our capital base for the benefit of our issuing clients. 3. Willingness to Commit Capital — TDPUD's underwriters should not only have the ability but also the willingness, to commit capital. Our competitive record is an indicator of our intent. We routinely take billion dollar exposures in making competitive bids at razor thin margins. Since 1990 we have bought over$170 billion through competitive sale. The bottom line for TDPUD is that our competitive track record shows that we will not hesitate to use our capital to achieve the most aggressive pricing levels for our municipal clients—whether issuing in the competitive or negotiated market. Page 10 Merrill Lynch TRUCKEE �DOTV NNER 3.CAPITAL STRENGTH The size and stability of Merrill Lynch's capital base is one of the strongest in the industry. The table below highlights the Firm's year-end capital position since 2003. With over$171 billion of Total Consolidated Capital and over $3.3 billion of Excess Net(uncommitted) Capital at the end of 2005, Merrill Lynch is one of the most capitalized firms in the securities industry. 2005 2004 2003 Total(Consolidated)Capital-ML&Co.Inc. $171,10o,000 $135,800,000 $105,442,000 Stockholder's Equity-ML&Co.Inc. 35,600,000 30,121,000 27,651,000 Net Capital-MLPF&S Incorporated 3,805,000 3,050,000 2,704,000 MLPF&S Excess Net Capital 2%,of ADI 3,301,000 2,683,000 2,419,000 Our capital strength benefits TDPUD in the following ways: 1. Provides Stability - The size and stability of the capital base makes Merrill Lynch a highly stable firm by ensuring our ability to commit large amounts of capital across business cycles regardless of annual profitability. This is clearly displayed by our leadership in competitive underwriting. Merrill Lynch has been the number one national competitive underwriter every year over the last 14 years, throughout a variety of market conditions. 2. Lowers Cost of Funds - Merrill Lynch aggressively underwrites our clients' bonds and provides secondary market liquidity under all market conditions. We routinely commit 20% to 30% of an issue size in capital, and on occasion up to 100%of the par amount, depending upon market conditions at the time of pricing. Our ability and willingness to commit capital-whether to underwrite unsold balances, to maintain liquidity in the secondary markets or to support the price levels of our clients'bonds-is essential to ensuring the lowest cost of funds. 3. Takes Aggressive Position Limit - We can take an aggressive position limit for municipal trading and underwriting(i.e.the daily volume of municipal securities that our traders and underwriters may own without seeking approval from Merrill Lynch senior management)of $1.5 billion,an amount we believe to be among the highest in the industry. This ability was displayed this spring when the Firm's municipal underwriting desk purchased the following four issues in the competitive market totaling over$1.3 billion in one day: - $583 million State of Georgia - $617 million San Francisco Public Utility Commission - $100 million Washington Suburban Sanitary Commission - $10 million City of Beacon,New York 4.LEADERSHIP IN THE DISTRIBUTION OF MUNICIPAL BONDS IN CALIFORNIA AND NATIONALLY National Retail Distribution: In the national retail market, Merrill Lynch is perennially ranked #1 in primary and secondary market sales of municipal bonds by the McLagan Survey,an independent survey of major investment banks. Our retail network,with 670 branch offices, supports 15,000+retail Financial Advisors(brokers) and serves over 9.54 million customer accounts. This extensive distribution system allows us to canvass the broadest possible spectrum of potential investors, thereby securing the most competitive terms available for our issuing clients. To coordinate our tax-exempt retail sales effort, we maintain staffs of professional municipal marketing specialists located in offices around the nation. Page I I Merrill lynch TRUCKEE D ONNER PUIILIC UTILITY DISTRICT California Retail Distribution: The Firm's California distribution network includes 74 retail offices housing 1,700+ Financial Advisors who currently manage over 605,000 retail accounts with $151.6 billion in total assets and over $17.7 billion in municipal securities. According to the 2005 McLagan Survey WaaaaC,a« (First Half), Merrill Lynch enjoyed a 19% market share in the sale SCR of municipal bonds to California retail investors. Merrill Lynch MWIVaa essentially sells one out of every five municipal bonds sold to retail �P investors in California. Our local presence of three offices located in the Truckee area will provide TDPUD ratepayers and local citizens the opportunity to purchase TDPUD's bonds. Our presence throughout the country combines the selling ability of a ,z> national firm with the market focus of a regional firm, allowing Th-naa.. ww. TDPUD simultaneous access to both the national and regional HO S.J—C. .a retail markets. This powerful local retail distribution system will Cwho City °te a help ensure TDPUD of the lowest cost of funds. � N..,a„B-c Santa M. #1 Ranked Global Institutional Salesforce* 700+Institutional Sales eo le in 35 countries worldwide #1 Ranked Domestic Institutional Salesforce* 165 Institutional Salespeople in 40 Domestic Offices 15,000+ Financial Advisors brokers in 670 Domestic Offices #1 in Retail Muni Sales Nationals 23%** 1,700 Financial Advisors in 74 California Retail Offices #3 in Retail Muni Sales in California 19% ** 9.5+Million Domestic Retail Accounts $1.5 Trillion of Assets under Mana ement *Independent survey of the 200 largest institutional investors. "First Half 2005 McLagan Survey of municipal bond sales amongst the nation's largest broker-dealers. 5.PRESENCE IN THE TRUCKEE AREA In public finance, Merrill Lynch is extremely active in the California, as well as the local Truckee area. Although we recognize Truckee Meadows Water Authority ("TMWA") is not a California issuer, we believe our support of TMWA is beneficial to TDPUD. In 2005, we purchased through a competitive sale, the $40,000,000 Truckee Meadows Water Authority ("TMWA") Series 2005 A, Water Revenue Bonds. We have continued to provide TMWA with refinancing ideas and innovative new money structures to maximize their debt portfolio. We have also provided TMWA with an extensive response to its RFP regarding its Commercial Paper program and will continue to provide ideas and recommendations. We have continuously provided California issuers with innovative financing structures and capital markets solutions to organez5tate Californd maximize ia debt issuances. the Truckee gion,,Merrill we hopes that fully weocan ltted to the demonstrateubhis lic finance market within commitment to TDPUD on its upcoming bond transaction. Page 12 Merrill lynch Proposal to Provide Investment Banking Services to the TRUCKEE-DONNER PUD Proposed 2006 Water System Certificates of Participation submitted by C Capital r +et LOS ANGELES OFFICE 777 S.Figueroa Street,Suite 850 Los Angeles,CA 90017 Tel:(213)362-4131 Fax:(213)3624110 August 7,2006 .^+ Richard Clark i..,. Director HI.Markets Capital U,S.Debt Nlarkets R13C Dain Rauscher,Inc, i77 S.Figueroa.Suite 851) Los Angales,CA 90017 Tel: 213-362-4131 Fax:'_13-362-4110 richard.clarkiri rbcdain.con, August 4,2006 Ms.Mary Chapman Administration Services Manager TRUCKEE DONNER PUD 11570 Donner Pass Road Truckee,California 96160 Re: Request for Proposals for Investment Banking Services for Proposed 2006 CON for Water System Improvement Projects Dear Ms. Chapman: RBC Dain Rauscher, doing business under the trade name RBC Capital Markets ("RBC Capital Markets") is pleased to offer our qualifications to serve the Truckee-Donner PUD (the "District") as a senior managing underwriter for the proposed new money financing and possible refunding for the District's Water System (the "Water System"). As a California-centered investment banking and brokerage firm, we offer in-state know how, experience and expertise matched by few other firms. Because of this, many California local government water and wastewater enterprise fund and special district issuers, such as the City of Santa Paula, the City of Madera, the City of Ontario, the San Elijo Joint Powers Authority, the San Dieguito Water District and the City of San Buenaventura, rely on our firm and our bankers for their financial needs. We offer the District broad-based distribution capabilities through our network of retail offices, seven of which are in Northern California, and our fully staffed institutional sales desk. Our active sales, trading and underwriting desk in San Francisco carries an average daily inventory of between $25 million to $50 million, a testament to our appetite for municipal debt. We also offer the District a strong capital base, based upon the resources of our parent,The Royal Bank of Canada,which makes our firm more willing to underwrite your securities in volatile market conditions. Richard Clark and Terry Maas, who are both located in the firm's Los Angeles office, will co-lead RBC Capital Market's involvement with the District. Randy Merritt, also located in Los Angeles, will assist them. We are very excited about the prospect of working with the District for this financing and we believe we have the right combination of experience, creativity and distribution strength to exceed the District's expectations. We hope you find the enclosed response informative and please do not hesitate to contact us if you have any questions. Sincerely, Richard H.Clark Director cc: Ms. Sandra McDonald,McDonald Partners 'RBC Capital Markets is a Registered Trademark of Royal Bank of Canada.RBC Capital Markets is a brand of Royal Bank of Canada and its affiliates,including RBC Capital Markets Corporation and RBC Dain Rauscher Inc.in the U.S.,members NYSE-SIPC;and RBC Dominion Securities Inc.in Canada,member CIPF and Royal Bank of Canada (Europe)Ltd. TABLE OF CONTENTS Page Letter of Transmittal 1. Firm Description....................................................................................................................................1 2. Water and Wastewater Financing Experience....................................................................................2 3. Financing and Structuring Advice........................................................................................................2 4. Rating and Bond Insurance Advice......................................................................................................6 5. Bond Capacity Analysis.......................................................................................................................14 6. Financing Team....................................................................................................................................18 7. Why RBC Capital Markets?...............................................................................................................19 8. Proposed Fee Schedule........................................................................................................................20 Appendix I—Water and Wastewater Bond Experience 2000-Current Appendix II—Resumes Appendix III—Detailed Bond Sizing Reports Proposal To Provide Lindetivritin Services "Truckee-Donner PUD 1. FIR.m DESCRIPTION RBC Capital Markets is a worldwide investment banking, sales and trading group that includes one of the leading public finance organizations in the U.S. The RBC Capital Markets public finance team, with over 150 bankers, is the most active underwriter of municipal bonds on or off"Wall Street," underwriting more issues than any other municipal lead manager. With 607 senior managed issues priced in 2005, RBC Capital Markets is the#1 ranked lead manager by number of issues underwritten and the#6 ranked lead manager by par amount underwritten. This equates to underwriting approximately 10-15 new issues per week, or about 3 new issues to market every trading day. Our relative rankings are shown below: 2005 Top 10 Lead Managers by Par Amount 2005 Top 10 Lead Managers by#of Issues Negotiated Municipal Underwriting: Full Credit to Book Runner Negotiated Municipal Underwriting: Full Credit to Book Runner Par Amt Mkt. #of #of Mkt. Par Amt Full to Book Runner (USS mil) Rank Share Issues Full to Book Runner Issues Rank Share (US$mil) Citigroup $50,527.6 1 15.3% 486 RISC CapHalMad"" 607 1 6.41E b41,416.8: UBS Financial Services Inc. 40,914.5 2 12.4% 578 UBS Financial Services Inc. 578 2 6.1% 40,914.5 Bear Steams&Cc 21,944.1 3 6.7% 162 Citigroup 486 3 5.1% 50,527.6 Lehman Brothers 21,135.5 4 6.4% 240 Banc of America Securities LLC 336 4 3.5% 16,261.7 JP Morgan Securities Inc 20,114.7 5 6.1% 230 Piper Jaffray&Cc 310 5 3.3% 4.483.5 RRC Capittd MWmts,'' 1T,4682 6 3% 607 " AG Edwards&Sons Inc 308 6 3.2% 6,693.1 Goldman Sachs&Cc 16,668.8 7 5.1% 154 Morgan Keegan&Co Inc 271 7 2.8% 6,754.2 Banc of America Securities LLC 16,261.7 8 4.9% 336 Robert W Baird&Cc 268 8 2.8% 1,881.0 Merrill Lynch&Cc 15,870.7 9 4.8% 223 George K Baum&Company Inc 266 9 2.8% 4,684.4 Morgan Stanley _14,590.2 10 4.4% 150 Lehman Brothers 240 10 2.5% 21,135.5 Top 10 Total 235,434.0 71.4% 3,166 Top 10 Total 3,670 38.6% 170,741.7 Industry Total 329,665.4 100.0% 9,510 Industry Total 9,510 100.0% 329,665.4 Source:Thomson Financial Our firm's public finance investment banking activities are supported by an institutional sales force of over 160, a sophisticated trading and underwriting unit, a retail distribution network of over 1,700 financial consultants, and a well-regarded municipal research group. We can also provide a full range of balance sheet solutions including derivatives and various credit products through our parent company, Royal Bank of Canada, one of the highest rated banks in North America. CALIFORNIA Rows. The public finance practice that is now a part of RBC Capital Markets has evolved over decades—including the acquisition of Sutro & Co., which was founded in San Francisco in 1858. While many other firms downsized or eliminated their public finance activities entirely in the 1990s, our firm expanded its national distribution capabilities and investment banking resources to meet the changing needs of its public sector clients. After Royal Bank of Canada acquired Dain Rauscher in early 2001, it promptly acted to continue in this direction, by acquiring firms with significant fixed income presence (such as Tucker Anthony Sutro and William R. Hough& Co.)and adding their strengths to RBC Dain Rauscher. Today, the fixed income banking, sales, trading and research activities of RBC Dain Rauscher are all performed under the RBC Capital Markets global umbrella, aligning our local services with the full range of resources available from the RBC Capital Markets platform. RBC Financial Group is a diversified global financial services company and a leading provider of financial products and services in personal and commercial banking, wealth management and trust, insurance, mortgage origination, transaction processing, investment banking, interest rate and currency swaps and a complete array of other financial products. It is the largest corporation in Canada and in a KPMG survey of CEOs has been voted the most respected company in Canada for four years running — and the most socially responsible corporation in Canada for each of the past ten years. A statistical summary of RBC Financial Group's resources is presented in the table below: RBC capital Markets 1 Proposal To Provide Uider%writing Services Truckee-Donner PUD k8C financial Grit .Ili hl1 `t L 2005 Total assets(U.S.GAAP)..................................................$397.6billion Market capitalization(TSX/NYSE:RY).................................$49.6 billion Gross revenues...............................................................$16.3 billion Capital ratios-Tier 1/Total...............................................9.6%/13.1% Senior term debt ratings....................................................Aa2/AA-/AA Short term debt ratings..................................................... P-1/A-1+/F-1+ Number of errployees.......................................................60,000 Number of countries with RBC offices..................................30+ Personal,business&public sector clients............................ 14+million 9ddinonul irtjur7nathm IS Lrvaiiaf*le nt hilp"'A -w vemorrelatons FINANCIAL PRODi'CTS. RBC Capital Markets provides an array of investment banking services designed to meet the tax-exempt and taxable debt financing needs of local government agencies. As municipal financial products have become more complex, the resources necessary to properly serve our clients have become correspondingly more specialized. As one of the world's premier financial institutions,RBC carries the highest rating among banks in North America (Aa2/AA-/AA) and is an active participant in the global financial products market. It has consistently been the largest volume dealer in interest rate swaps of all Canadian banks. 2. WATER AND WASTEWATER REVENUE BOND EXPERIENCE A listing of our recent California underwriting experience for comparable revenue bond financing is included in Appendix 1. RBC Capital Markets has extensive experience in water and wastewater revenue financings. Nationally, RBC Capital Markets has participated in over 1,146 water and wastewater financings for local agencies and financing authorities totaling over $33.0 billion in borrowing since January 1, 2000. We are active in both negotiated financings and competitive financings, having lead transactions as large as $330 million and as small as $1 million. Our bankers have been involved with 22 water and wastewater revenue-backed financings as senior manager, co-manager or financial advisor in California totaling over $2.6 billion in bonds since 2000, with senior or sole managed experience on 10 financings with a total principal amount of approximately$171 million over the same period. As evidence of our recognized experience in water and wastewater financings, our firm was appointed sole manager for a$35.955 million issue of combined wastewater and water utility financing for the City of Madera which sold in February 2006. Also in February 2006, our firm was named as sole manager for two wastewater enterprise fund financings including $23 million(estimated) for the City of Ontario and$60 million (estimated) for the City of Santa Paula. Both issues are in process and are expected to sell and close by yearend. 3. FINANCING AND STRUCTURING ADVICE Our firm's unique approach to the District's proposed Water System financing can be viewed in terms of a three phased approach consisting of the following distinct facets: (i)Financing Structure, (ii) Structuring the Issue and (iii)Presenting the Financing. The approach to structuring and presenting the District's Water System credit to the rating agencies and bond insurers would necessarily build upon the overall approach that the District takes towards the financing. The current proposed financing would be the first time since 1996 that the credit markets would be presented with the standalone credit of the District's Water System in terms of evaluating the credit worthiness of the Water System. RBC Capital Markets 2 Proposal To Provide t inderwritinv Services Truckee-Donner P[.D Part I: Financing Structure RBC Capital Markets understands that the District hopes to raise about$18.4 million in net proceeds to invest in growth and modernization improvements (the "New Money Projects")to the existing water distribution system consistent with the District's long-term financial plans. We are aware that McDonald Partners is representing the District as financial advisor and has prepared feasibility and rate study financial plans for the District. The District Board called for a public hearing and adopted revised utility rates in July 2006 to be effective in January of 2007 and 2008. We are aware that development within the Donner Lake service area is expected to pay for its own proportional costs of facilities for the District's Water System which is being accomplished through a surcharge on Donner Lake customers. Based upon our review of the District's Request for Proposal and our general knowledge of the facilities that the District may include in the financing, we would concur with the district's choice of installment sale certificates of participation ("2006 Revenue COPS") as the preferred financing structure. The legal and economic basis for the 2006 Revenue COPs is described in more detail below. Revenue Installment Sale COPs ■ Resolution By Majority of Board To Approve ■ No Voter Authorization Required User Fees(Connection Fees Currently Excluded) ' " 2 Some Confusion With Lease Type COPs Cannot Exceed Useful Lives of Assets Financed s Risk Remains on District to Complete Facilities t Rate Covenant Requires DS Coverage Funded from Bond Proceeds or DSR Surety ' � � &: Broad Authorities Including Refinancing Other System �' Obli ations As an alternative,the District could utilize its existing joint powers authority which would allow for the issuance of Marks-Roos Local Bond Pooling Act Bonds. The proceeds of the joint powers authority bonds would be used to purchase an installment sale agreement from, or to make a loan to, the District's Water System enterprise fund. While the issuance of Marks-Roos JPA Bonds works well for multiple issuer borrowings, the financing would require an additional ordinance and public hearing requirement that would be subject to a 30-day referendum period. More recent amendment to the Marks-Roos JPA Bond Law may also require notice to the Secretary of State although the interpretation of this part of the statute is not universal amongst bond counsel firms. For the reasons stated above, we would not recommend proceeding with an issue of Revenue COPS. As an aside, the refunding of the District's currently outstanding 1996 COPS could be refunded with revenue bonds under the general refunding statute in the Government Code but combined new money and refundings could only be financed with Revenue COPs. For the purposes of this Request for Proposal, we assume that the District would prefer to undertake a revenue backed borrowing, utilizing revenue COPS, for the New Money Projects and the possible refunding of the District's 1996 COPS. Also, were the 1996 COPs to be refunded, the District would be starting with a"clean slate" in designing a suitable set of borrowing covenants, as there would be no existing parity debt obligations that would carry a pledge of Water System revenues with the exception of the State of California DWR Loan. We do not have access to the State of California DWR Loan documentation to see whether the borrowing covenants in the DWR Loan parallel those in the 1996 COPS. Our experience is that the parity provisions in the 1tE3C Capital 3 ,markets Pro)oral To Provide Underwriting Services Truckee-Donner PUD State of California DWR Loans are sometimes ambiguous, particularly where payment dates and debt service reserve fund requirements do not match those on the obligations which are assumed to be "parity" obligations. Other times, approval of the State is indicated as a condition to the issuance of parity obligations. In any case, some diligence in regard to maintaining the parity status of the 2006 Revenue COPS with the State of California DWR Loan would probably be appropriate. If the 1996 COPs are refunded and the parity provisions of the California DWR Loan are judged to be too onerous, the District might also consider closing off the lien of the California DWR Loan and borrowing on a subordinate lien basis with an entirely new set of covenants. Additional analysis is needed in regard to some of our assumptions in order to review and verify legal issues, reserve policies,connection fees,investment of reserve funds and other matters before adopting a definitive plan of finance. However, our analysis of the flow of funds for the pledge of Net Revenues of the Water System is depicted below: 3' J` Facility Fees System Expansion Projects it ISO= III `� i III � it H I Data is for 2005 We would make the following specific observations about the District's Water System based upon our current understanding: :Nature of G'tilio. The District's Water System is relatively complex for its size with multiple storage tanks, wells and pumping stations. We understand that the District's source of supply is from District maintained wells. We are not clear how much, if any, treatment of District water sources is required before distribution to customers. Regulatory Environment. State and local laws require a high degree of regulation for the District's Water System. We are aware of recent concerns voiced by District personnel about aging infrastructure and repair costs, some of which would be addressed through the current proposed financing. We assume that the McDonald Consultant's Study was designed to address the financing of future capital improvement needs to maintain the Water System in compliance with regulatory requirements, including point source testing, and to fund necessary capital construction and replacement needs. Capital Markets 4 Proposal To Provide Undei-writing Services Truckee-Donner PUD ljtility Billing. The District bills its customers on a monthly basis. Delinquencies are not known but are probably negligible as a failure to pay would lead to the curtailment of water service. However, the Water System is a summer peaking system with substantial recreational and second home uses which could impact accounts receivable aging and collection patterns. Comparative Rates. Reproduced below from the annual audit report for a neighboring water district is a residential rate comparison from 2004-05 to which we have added an estimated rate for the District. The District's rates appear to be near the upper median range of this sample before adjustments are made for zonal pumping charges. Truckee-Donner PUD Estimated Comparative Water Rates Incline Village $251 Tahoe City PUD 406 South Tahoe PUD 410 North Tahoe PUD 456 Truckee-Donner PUD 547 Kingsbury 648 Cave Rock 1,090 Note When comparing, it is important to note that base conditions vary. For example, some agencies also have property tax contribution and some agencies possess full or excess groundwater rights.The rate shown for the Truckee-Donner PUD is the existing Domestic Flat Rate Base charge on an annualized basis before zonal pumping costs. Some agencies bill separately for capacity charges and other special services. The most recent rate increases would increase the billing rates for the Water System by 6.0%in January 1,2007 and 6.0% on January 1, 2008. One-half the rate increases that have been approved are designed to create a minimum level of reserve funds (targeted to be 175 days of operating expenses) for the Water System(targeted to grow from 0 to $3,000,000 over six years) and the other half are designed to pay for increased operating costs. One cautionary note on Water System rate increases arises from recent court actions concerning Proposition 218 (see below). Proposition 218. The Supreme Court's latest decision in regard to Proposition 218 is the: Bighorn-Desert View Water Agency v. Verjil (July 24, 2006) Cal.4th [S127535]. This case may have broad implications for water and wastewater agencies in that the Supreme Court appears to have agreed with the lower courts that there was no ability for a voter initiative under Proposition 218 that would subject all future rate increases to a vote. However, it found that the proponents could submit an initiative that repealed or limited the water district's fees and charges. Some districts are following a "paper ballot" procedure for establishing water and wastewater rates whereby ratepayers are first noticed and, in the absence of a majority of ratepayers indicating that they do not accept the rate increases, and following a public hearing, then the increased rates are seen as being compliant with the initiative procedures available to ratepayers under Proposition 218. In almost all cases, the likelihood of a majority of ratepayers indicating that they do not approve of the increased rates is judged to be remote. However, compliance with Proposition 218 and the need to properly disclose to investors, rating agencies and bond insurers in an Official Statement about whether the issuer believes that they are compliant with Proposition 218, could raise disclosure issues. We do not know what approach the District wishes to take in this regard but there could be concerns evidenced from rating agencies and bond insurers were there to be disclosure which would be seen as a "red flag" to dissident ratepayers to pursue some sort of remedy under Proposition 218. These matters are probably best addressed in private discussions between the District and District's legal counsel as well as with Bond and Disclosure Counsel. RBC Capital S Markets Proposal To Provide Underwriting Services Truckee-Donner PUD 4. RATING AND BOND INSURANCE ADVICE Part II: Structuring the Issue Many of the typical rating agency and bond insurer considerations in rating or insuring a water system enterprise fund backed-type financing are summarized in the chart below. RBC Capital Markets' experience has been that a well structured financing will address all of these issues in the context of a working group environment before an approach is made to the rating agency(ies)or the bond insurers. Truckee-Donner PUD Water System Rating Agenev and Bond Insurer Credit Considerations ■ Breakdown of Residential,Commercial and Industrial Demographics and Use Trends ■ Trends in Usage:Growth or No Growth ■ Major Customers and Percentage of Revenues They qgx. Represent Top-10 Users As A Percent of Revenues Safe Drinking Water Act Compliance Status ■ New Regulations May Increase Capital Needs r ■ New Regulations May Increase Operating Costs F t History of Maintaining System With Regular Maintenance Degree of Deferred Maintenance ■ What Are They And How Will They Be Financed? Need and Facilities for Water Treatment(if any) ■- Sizing and Capacity of Distribution System Analysis of Customer Average and Peak Daily Demand Reservoir Storage Capacity and Emergency Supply ' Customers with Special or Seasonal Needs ` =s_ Status of Regulatory Compliance ■ Future Re uirements for Treatment Service Rate Criteria E How Rates Compare With Neighboring Communities ■ Context of Economic Wealth Indicators and Income Levels '! Number of Required Approvals Management Approach 9' Ability to Implement Timely and Adequate Rate Increases RBC Capital Markets 6 Proposal To Provide 1lndeiivriting Services Truckee-Donner PC D ■ Utility's Demonstrated Stability and Consistency ya 3 to 5 Year History of Historical Results ■ Comparison of Historical Results to Budget and Forecasts 0 Overall Debt Levels ■ Level of Exposure to Short-Term Debt i ■ Accounts Receivable Levels and Collections History y, Off-Balance Sheet Contractual Obligations f ■ Fixed Charge Coverage of Debt Plus Off-Balance Sheet Debt and Contractual Obligations ■ Reliance on Connection Fees and One-Time Revenues `' De endence U on Major Customers RBC Capital Markets believes that the District should be able to create a strong and compelling story for the rating agency(ies) and bond insurers in the structuring phase of its financing. As the District is starting with pretty much a"clean slate", i.e.with no underlying rating on its outstanding 1996 COPs,it should be possible to approach all of the issues listed above with a fresh perspective, using a reference point of what will be in the best interests of the District long-term. Based upon the preliminary information garnered in the process of generating this proposal response, we would offer the following observations about the District's particular issues for its Water System as they relate to the above described credit considerations: Truckee-Donner PUD Water-System Rating Agency and Bond Insurer Credit Considerations Custoine ■ 2005 Residential-633 Accounts 5 Year Growth 20% 2005 Commercial-11,284 Accounts—5 Year Growth 28% Growing Residential Neighborhoods ■ Wealth Indicators and Home Prices Increasing h °° ' ■ Per Capita Income 17'h Ranked Among CA Counties in 2003 ■ Consistent Local Job Growth Local Unemployment Lower Than State Averages 6 Construction,Trade and Services Major Sources for Jobs ■ Major Customers Consist of Residence.Associations,Golfe. Course,.School District and Mobile Home Park To -5 Users in 2005 Less Than 10%of Demand 3.88% ROC Capital 7 .Markets Pro osal'To Provide l)nderwriting Services "Truckee-Donner PI D ■ Current Status Unknown ■ New Regulations Likely to Increase Capital Needs • New Regulations Likely to Increase Operating Costs • District Has Adopted Long-Term CIP Replacement Pipelines Designated as Priority#1,#2 and#3 • Rates Predicated on Long-Term Plan to Allow for Bonding for Priority#1 Projects and Create Adequate Levels of Reserves to Address Priority#2 and#3 Projects • Backlog of Projects � w, Growth and New Develo ment to Pa for Own Needs ■ Suing and Capacity of Treatment Plants Not Clear • Typical Well Systems Require Monitoring and Testing a New Growth May Change Customer Average and Peak Daily � . Demands On Water System. Growth Through Acquisition and Mergers ix Aging System Requiring More Frequent Maintenance, Repairs and Replacement Increased Capital Costs Likely to Address Priority#2 and#3 i Pro'ects'in Out Years ■ Recent Rate Comparison With Neighboring Communities Appears'In Line with Likely Medians Before Adjustments for Zonal Pumping Charges Wealth Indicators and Income Levels Generally Stable or f Improving A_ seP ■ Board Established Recent Rates Through Ordinance Historic Rate Increases Infrequent ■ New Rates A ear Corn rebensive and Intermediate-Term r ■ Recent Financial Performance Appears Adequate ■ Projections and Historic Results Support Current Proposed Debt Future CIP Costs Not Known But Likely Significant '` ■ Overall Debt Levels Would Be Increased i „ • No Variable Rate Debt Exposure ■ Accounts Receivable Level At 0.97%%of Total Assets • 2005 Water Operations Balance Sheet Shows Negative Operating Funds Balance " a Projected Fixed Charge Coverage Adequate \ - M No Connection Fees,One -Time Revenues or Fund Balances F Included in Projections z _` • Projections Appear To Provide for 1.1 Ox Coverage for E �, ;; ��•` �d Pro osed Borrowin - RBC Capital 8 Markets Proposal To Provide Underwriting Services Truckee-Donner PUD Care should be taken to fully discuss the District's likely future Water System Capital Improvement Plan ("CIP") components and expected future financing needs in order to integrate those needs with the decisions being made today about the structure of the current proposed financing. We also view the recent historic performance of the District's Water System as a neutral to positive factor in that it can be demonstrated that the proposed parity debt test is met by the trailing 12 months financial performance. Based upon the 2005 Net Revenues available to pay debt service of$2,705,942 as reported in the District's Continuing Disclosure Filing dated July 17, 2006,the pro-forma debt service coverage for Option No. 1 would be 1.165x and for Option No. 2 would be 1.350x. The difference between our Options Nos. 1 and 2 has to do with the layering of debt service on top of, or wrapping around, the existing debt service on the California DWR Loan. The two options are explained in detail later in the proposal. The same continuing Disclosure Filing references a lower 2006 Net Revenue amount of$2,037,252 which could be problematic from the standpoint of meeting a parity debt test of 1.1 Ox depending upon which how the current proposed borrowing is structured. Depending upon the nature of the feasibility and rate study financial plans prepared by McDonald Partners, these studies could be very useful to the District's discussions with rating agencies and bond insurers. Such studies could reinforce the view of management as being deliberate and thoughtful in approaching the management of the District's enterprise funds in a business-like manner. A rating agency site visit would also help reinforce the approach the District is taking to planning for the future capital needs for the Water System. A site visit might also assist in explaining the diverse service area and geographic challenges of managing the District's service territories. Best Quality Pledge for Rating and Insurance Purposes. As mentioned above, if the 1996 COPS are refunded, the only outstanding obligations of the District's Water System that would include parity debt provisions would be the California DWR Loan. Assuming that those legal documents mirror the parity covenants in the 1996 COPS, care should be taken to include covenants in the 2006 Revenue COPS that would not limit the flexibility of the District to determine debt covenants for a financing of the New Money Projects as well as for future CIP borrowing. If covenants in the California DWR Loan are seen as a complicating factor, consideration might be given to including"springing covenants"that would apply to future borrowings once the California DWR Loan is paid at maturity in 2020 or upon a refunding or defeasance of those obligations. Parity Bonds. The additional bonds test for a revenue backed financing is the primary means for providing bondholders with security that a minimum level of debt service coverage can be met upon the issuance of parity debt. The rating agencies focus on the additional bonds test in order to assess the likelihood that the issuance of senior or parity bonds in the future can erode debt service coverage below a minimum acceptable level. The current additional bonds test in the 1996 COPS reads as follows: "(1) The Net Revenues for the 12 consecutive months during the last 18 months preceding the date of adoption by the Board of Directors of the resolution authorizing the issuance of such Bonds or the date of execution of such Contract, as the case may be, as evidenced by both a calculation prepared by the District and a special report prepared by an Independent Certified Public Accountant or Independent Financial Consultant on such calculation on file with the District, shall have produced a sum equal to at least one hundred ten percent(110%) of the Debt Service of such Fiscal Year; and (2) The Net Revenues for 12 consecutive months during the last 18 months preceding the date of adoption by the Board of Directors of the District of the resolution authorizing the issuance of such Bonds or the date of execution of such Contract, as the case may be, including adjustments to give effect as of the first day of such 12 month period to increases in rates and charges for Water Service approved and in effect for at least one month prior to the date of calculation (except that increases in standby charges may be taken into account in such calculation if they have been enacted for the next succeeding Fiscal Year) and to increases in revenues RBC Capital 9 Markets Pro osal To Provide Underwriting Services "Truckee-Donner PUD as a result of an expansion of, or annexation by, the District approved and in effect for at least one month prior to the date of calculation, as evidenced by both calculation prepared by the District and a special report prepared by and Independent Certified Public Accountant or Independent Financial Consultant on such calculation on file with the District, shall have produced a sum equal to at least one hundred ten of the Debt Service for such 12 month period plus the Maximum Annual Debt Service of such Contracts or of such Bonds as if it were due over the course of such 12 month period;and..." One concern we would have is whether the "adjustments to give effect as of the first day of such 12 month period to increases in rates and charges for Water Service approved and in effect for at least one month prior to the date of calculation" could be interpreted to include the District's recently enacted forward looking rate increases. Increased standby charges are clearly included by the parenthetical that follows the above paragraph. If not, care would be need to be taken to maintain a level of MADS (Maximum Annual Debt Service)that does not drive up debt service in the near term where the debt for the 1996 COPS is still being amortized such that a 1.10x coverage become problematic. Below in our capacity analysis, we suggest a means for shaping the debt service for the New Money Projects which may avoid this issue. Our rationale for maintaining the existing 1.1 Ox level of coverage maintenance covenant(as opposed to agreeing to some higher level of coverage for the current proposed and future borrowings) would be to maximize the proceeds of the current proposed borrowing given the constraints imposed by currently projected Net Revenues. As always, the covenanted level of debt service coverage is not necessarily indicative of actual coverage levels maintained as a financial policy by the District's Water System which may be in excess of the minimum level covenanted. Said another way, the covenanted level is a minimum level that should be viewed as the exception rather than the rule. We would note that two other regional water and wastewater districts, South Tahoe PUD and North Tahoe PUD carry underlying debt ratings of NR/A/AA- and NR/A/NR, respectively, with parity covenants of 1.20x and 1.25x, respectively. No two special districts are the same but the rating agencies, in particular, may attempt to draw comparisons with neighboring districts and, to the extent that a comparison is made, the District should be prepared to point out the appropriateness of its own proposed debt covenants. A 1.15x or higher parity debt covenant might be perceived as a stronger borrowing covenant but we believe that the Water System's status as a primarily distribution system gives it a high degree of predictability of financial results which would make the existing 1.1Ox parity debt covenant an appropriate one. However,the District will be a more leveraged entity as a result of the current proposed financing with pro-forma long-term debt equal to 50% of pro-forma net assets based upon the District's yearend 2005 results. Future projected financial results will be more critical to demonstrating an ability of the District to service increased levels of bonded indebtedness. RBC Capital Markets has been successful in achieving high quality ratings and qualifying for bond insurance for utility issuers similar to the District with the above covenant language. Based upon our experience, we view an "A" category rating from Standard & Poor's as achievable for the current proposed financing. We do not anticipate the need for two underlying ratings and would recommend that only one rating agency, Standard & Poor's,be approached. We would suggest two other coverage related covenants be included by the District for a borrowing by its Water System. The first is the ability to incur additional State Loans as parity debt on equal security with other bonded debt obligations. State Loans may be attractive to the District for financing future projects of the Water System. Covenant language describing State Loans might read as follows: 8 RBC Capital 10 .Markets Proposal To Provide Underwriting Services "1"ruekee-Donner PUD "State Loans. The District may borrow money from the State to finance improvements to the Water System, without complying with the provisions of paragraphs [sic] above, relating to the issuance of Parity Bonds, and the obligation of the District to make payments to the State under the loan agreement memorializing said loan (the "State Loan') may be treated as Parity Bonds for purposes of the [Indenture];provided that the District shall not make a payment on such State Loan (except as hereinafter expressly provided) to the extent it would have the effect of causing the District to fail to make a timely payment on the Bonds. In the event the District's Water System Revenue Fund does not contain sufficient funds to make the full amount ofpayments on the Bonds and such State Loan, the District shall make payments on the Bonds and such State Loan on a pro rata basis." Second, covenant language that allows for a Rate Stabilization Fund could be included in order to allow the District some flexibility in how it raises and implements user fees. However, in order to not diminish the fundamental aspects of the security pledge of Net Revenues, the District would still need to "fix, prescribe, revise and collect Charges for the Water System(exclusive of connection fees and transfers to the Water System Operations Fund, from a rate stabilization fund) in amounts adequate to pay 100% of Operation and Maintenance Expenses, debt service as well as any other payments required to meet any other obligations of the District that are payable from Gross Revenues or Net Revenues of the Water System". As the District does not include connection fees that are available to be pledged as Gross Revenues, the only revenues that would be excluded from Gross Revenues to determine compliance with the I.00x coverage by recurring revenues would be the amount of a transfer from a rate stabilization fund. We would recommend that the current proposed financing include a debt service reserve fund funded to the lesser of: (i) 10%of Net Proceeds, (ii) 100%of Average Periodic Debt Service or(iii) 125%of Average Annual Debt Service. The debt service reserve fund requirement could be met by a Surety Bond. Also, the parity debt language should allow for either a series or a parity debt service reserve fund depending upon the District's options that may be available when a future borrowing is completed. In general, a Surety Bond works well for a debt service reserve fund funded on a series basis but not on a parity basis. Therefore, the District may want to consider the ramifications of using a Surety Bond for the current proposed issue in light of what restrictions it may place on the ability to structure a parity debt service reserve fund as part of a future borrowing. The existing parity debt covenant in the 1996 COPs requires a "reasonably funded or secured debt service reserve fund." This requirement seems a little vague and it is not clear whether this implies a series or a common reserve. A common reserve has advantages and disadvantages depending upon the shaping of the Water System's overall debt service after a series of financings. A common reserve may also be somewhat problematic where debt service reserve fund sureties are used because a surety may expire upon the maturity of one series of bonds while a subsequent series of bonds may have a later maturity, in which case, the common reserve may become under funded. In other words,the District should closely evaluate the dynamics of the debt service reserve requirement in the context of its overall borrowing plans. Part III• Presenting the Financln9 Anyone who has been involved with municipal finance during the last several years cannot help but notice that the majority of new issue financings are insured. The numbers of issues with municipal bond insurance is now more than 50% of the new issues and a higher percentage of California credits compared to other geographic areas nationwide. The District would be correct in asking whether applying for an underlying credit rating makes any sense at all. There are a number of strategies that could be pursued in this regard. We could find no evidence of a prior historic underlying rating for the District's Water System. While the District would likely be able to qualify the current proposed financing for the New Money Projects for bond insurance, there would still be some utility in the marketing of the financing to have a rating released prior to the initial sale. The rating would not add to issuance costs as the costs of a rating are already factored into the rating fees for an insured transaction. Some of the relevant criteria for achieving a desirable rating are outlined below. RBA Capital 11 'Markets Proposal To Provide Uiiderwriting Services Truckee-Donner PUD Rating Agency and Bond Insurer Presentations, RBC Capital Markets could assist the District with as complete a rating agency and bond insurer presentations as the District may wish to provide. This could involve a fairly straightforward site visit(s) or meetings held in the rating agency or insurer offices in San Francisco or, preferably, at the District's offices. RBC Capital Markets is very familiar with the process of presenting new credits to the rating agencies and has prepared numerous detailed presentations whereby management can present their story to the rating agencies. A not atypical presentation would be very detailed and would amount to probably 30+ pages of detailed and forthright information about the Water System enterprise fund and its prospects. We understand from the RFP that McDonald Partners would take the lead in working with the District on the rating presentation but we would welcome involvement and input in the process of creating a rating and bond insurer credit presentation. Credit issues that the District should be prepared to address in its credit presentation describing the financing would include: (i)the reasons behind the current proposed borrowing, (ii)the current state of repair of its Water System, (iii)future borrowing needs and(iv)how the District will manage its utility in a business-like fashion in order to insure adequate Net Revenues to repay the current and any projected borrowing. As this is the District's first new money borrowing since 1991 for the Water System,the debt added by the financing will be a significant percentage of the Total Net Assets of the District's Water Enterprise Fund. This percentage will seem high in comparison to other less leveraged water and wastewater systems and may be a factor in the Water System's initial credit rating. The more information that the District can provide the rating agency to convince them that the District is "in control," the more comfortable they will be with rating the current proposed borrowing. There is also the possibility of applying for an indicator rating which would determine the ultimate category but not the specific"+"or"-"into which the District's Water System fund credit might fall. This approach assumes that the issuer is not desirous of maintaining a credit rating once it is received and instead wishes to establish a credit opinion that could be useful in negotiating better bond insurance pricing. This rating, however, does not achieve a secondary value of being available to tell investors that an issuer has an underlying credit rating. In a primarily bond insured world, a number of investors are restricted in the types of bonds that they can buy, and sometimes an underlying rating will be a primary reason for their investment decision. When markets are crowded with multiple new issues, an issuer benefits from any factor, such as an underlying rating, which distinguishes their issue from someone else's. Bond Insurance. How much is the underlying rating and/or bond insurance worth to an issuer? For a $20 million+ financing for an infrequent issuer such as the District, the savings in bond insurance premium could be anywhere from 5 to 10 basis points in interest rates depending upon the maturity. The savings in interest cost from attracting additional potential investors is difficult to quantify but, on a given day, in a market with many competing issues, an underlying rating could improve the pricing of certain maturities by as much as 5 basis points. There is also the potential benefit of maintaining a credit rating in order to inform the public and local constituencies of how the District is doing compared to its peer group, particularly when it comes time to establish and maintain water rates that are supportive of the utility's overall financial well-being. RBC Capital Markets' caution in this regard is that a credit rating can't be ignored and that resources should be dedicated to maintaining the currency of a credit rating once it is received. The primary reason that bond insurance is so widely utilized in today's municipal financings is that investors are risk averse and secondary market disclosure has not yet evolved to where secondary marketing of municipal bonds is an efficient market. There is little timely information available on municipal issues and many investors would just as soon have their bonds trade as a commodity, on an equivalent basis to other "AAA" insured financings. The constant stream of insured municipal new issues also helps to guarantee that investors will have comparables available for the pricing of their bonds either as new issues or in the secondary market. 8 RAG Capital 12 .Markets Pro 3osal To Provide Underwriting Set-vices "Truckee-Donner PL'D There are five bond insurers who would likely be interested in insuring the District's Water System financing. We would recommend taking the time to contact all five and present them the same information that would be provided the rating agency, preferably in a PowerPoint format that the bond insurers could utilize in their own internal credit approval processes. Our efforts on behalf of the City of Ontario for a recent water system financings paid off in regard to that issuer's 2004 Certificates of Participation (Water System Improvement Project)as far as qualifying the issue with all of the major bond insurers. The results are summarized below: City of Ontario 2004 Certificates of Participation Summary of Bond Insurer Bids Insurer (bps) (bps) XL Capital 24.7 125 MBIA 29.0 200 FGIC 31.7 225 Ambac 31.0 210 FSA 48.5 150 Note: All bids received June 24,2004. The above bids built upon the success of obtaining an initial "A" category underlying rating, in spite of high leverage for the enterprise and negative implications from the rating agency about the use of bond proceeds to make payments to third-party JPAs who provided treatment capacity for the city's water system. With the minimum "A" category rating we would anticipate receiving for the current proposed financing, we would expect bond insurance bids to be competitive for the District's proposed financing. In summary,our overall approach and action plan for this financing is shown in the chart below: Truckee-Donner PUD Water System New Money Financintl Action Plan Action Item Sieps to be Taken • Review Utility History ■ Review History of Board and Public Support ■ '` Review Available Repayment Sources a Verify That All CIF and Operating Costs Covered a0 Determine Amount to Be Borrowed vs.Amount to Be Paid For From Rates ■ Gather Cost Information and Estimates ■ Solicit Drawdown and Timing Estimates ■ Verify All Project Costs Are Met From 9 Bond Moneys or Other Funding Sources 0 Estimate or Determine Costs of Issuance Provide Preliminary Sizing Runs 9 Sensitize Sizings to Current Market " Interest Rates ■ Adjust Sizings Based Upon District's Needs RBC Capital 13 Markets Proposal To Provide Underwriting Services "Truckee-Donner PUD � � `` � ■ Establish Whether Parity Test Accommodates Current and Proposed Borrowings ■ Analyze Billing and Utility Rate Policies Prepare and Submit Draft Financial Plan a ■ Solicit Comments and Make Changes as Appropriate gr ■ Obtain Board and Staff Authorization 3 $ � ' Draft Legal Documents and OS ■ Obtain Additional Service Providers as Necessary • Contact Rating Agencies and Bond Insurers i' Review Sizing Assumptions in Light of Current Market Interest Rates Proceed With Bond Marketing Activities ■ Advise District on Reinvestment of Proceeds ■ Coordinate Closing With Service Providers ■ Provide Post-Sale Report to District Documenting the Circumstances Surroundin the Sale The Trust Agreement for the financing would contain numerous covenants and restrictions covering: (i) operations of the District's Water System(as defined), (ii)insurance for casualty, (iii)default and remedies, (iv) investment of financing proceeds,and(v)parity debt issuance among others. Most,if not all,of these covenants would be carefully analyzed and established after consultation with the District. RBC Capital Markets would be careful to analyze the District's existing self-insured insurance coverage situation and not to create any additional conditions in the financing which the District would have difficulty meeting. Investment restrictions would be negotiated to allow for maximum investment flexibility while meeting whatever investment restrictions may be called for in the District's investment strategy. Lastly,care would be taken not to restrict the District's ability to do additional financing related to the New Money Projects or other projects. Covenants would be drafted in order to give the District the maximum flexibility to pursue additional long-term borrowing on cost effective terms. 5. BONI)CAPACITv ANALN'SIS Refunding of the 1996 COPS The decision of whether or not to refund the 1996 COPS should be made on the basis of the economic justification of utilizing the call feature for an outstanding debt issue for a targeted level of savings. The 1996 COPs are currently callable on 30 days notice which avoids the potential for negative arbitrage typically associated with an advance refunding. However, most all refunding escrows, including a typical 30-day escrow in the case of a current refunding,are perfectly efficient under current market conditions and there would be no negative arbitrage. We are aware that the debt service reserve fund for the 1996 COPs is invested in a repurchase agreement backed by U.S. Agency securities ("GIC") with a stated yield of 6.31% which is above the arbitrage yield of 5.44% on the 1996 COPs. Diligence should be undertaken to assure that there are no "breakage" provisions in the GIC which might entail a payment to the provider. In any case, we have modeled the refunding on the basis that both the refunded 1996 COPs and the 2006 Revenue COPS would earn interest at the arbitrage yield for their respective issues. Therefore, the analysis summarized below is a "net-to-net" analysis that does not overstate the refunding savings. ROC Capital 14 Markets Proposal To Provide U tide rvriting Services Truckee-Donner PUD In the table below, we have summarized the refunding results for the 1996 COPS. We would recommend that the District refund the 1996 COPs for savings as long as the net present value savings maintain themselves at a level in excess of 3%,or even slightly below. To wait for a refunding that is slightly below 3%net present value savings to rise above a 3%threshold may entail market risk. With a relatively short final maturity of 2021,the call feature on the 1996 Refunding COPS represents a"wasting asset"that has value today but will decline over time. Refunding of 1996 COPS Truckee Donner Public Utility District Interest Rates As of 08-03-06 OptionOption No. I Allocable Portion Only ' ' DS Assumed Credit Rating Aaa/AAA Aaa/AAA Assumed Underlying Credit Rating "A"category "A"category Par Amount $7,765,000 $7,680,000 Refunded COP Principal 8,465,000 8,465,000 DSR Deposit-Cash 567,912 523,600 Bond Insurance Premium 45 Basis Points 45 Basis Points Average Coupon 4.844% 4.845% True Interest Cost 4.233% 4.159% All-in-Cost(AIC) 4.395% 4.317% Refunding Debt Service Payments: Average Gross DS Payment $743,154 $746,145 Average Net DS Payment 718,941 721,946 Total Gross Debt Service 11,147,308 11,075,103 Total Net Debt Service 10,195,912 10,184,840 Refunded Debt Service Payments Average Gross DS Payment $804,758 $804,758 Average Net DS Payment 753,743 753,743 Total Gross Debt Service 12,629,456 12,629,456 Total Net Debt Service 11,030,262 11,030,262 Current Refunding Escrow Transfers from Prior Issue DS Funds $552,114 $552,114 Transfers from Prior Issue DSR Fund 808,470 808,470 Cost of Escrow 8,798,730 8,798,730 Actual Positive Arbitrage on Escrow 7,946 6,781 Refunding Savings Total Gross Savings $799,812 ` $847,998 3 Net Present Value Savings 248,333 z 298,381 z Average Annual Gross Savings 60,302 65,115 Average Annual Net Savings 34,802 31,635 NPV as a%of: Refunded Par 2.934% 3.525% Refunding Par 3.198% 3.885% 'After$424,539.19 net freeup from existing DSR. 2After Transfers from Prior DS Funds of$552,114. 3After$463,537.95net freeup from existing DSR. ROC . pests 15 Proposal To Provide 1Jndejtivriting Services Truckee-Donner PIED Existing Debt Service. We have charted below the existing debt service for the 1996 COPS and the California DWR Loan. The existing debt service is substantially level. The payment dates on the California DWR Loan are one month earlier than the 1996 COP payment dates and the California DWR Loan pays principal semi-annually. Without access to the documentation for the California DWR Loan,it is not clear how the parity provisions work vis a'vis the 1996 COPS as far as the payment priority from Net Revenues. Existing Debt Service 2.4'- -- - ---_. e 0 2.2 2.0 ---- - -- --- 1.8 1.6 -- 1.4 -- --- -- — 12 1.0- -awn --_ --- 0.9 --- 0.6 0.4 - 0.2 0.0 O~h Off`'O~b O~^O�b O~Q Otis O�1 01�Otis Oda O�'h Otib 01^01�O�Q O��011 O1' 0 O 1,1 O11' ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ■California DWR Loan ®Refunded 1996 COP DS We would note that we have assumed that the District will contribute the amount necessary to make the principal and interest payment on the 1996 COPs on their November 15, 2006 semi-annual principal payment date. In other words,we have assumed in our numerical analysis that the District has set aside in the Revenue Fund the amount of $552,114 which will be contributed to the refunding escrow and which will be used to redeem the 1996 COPs on November 15,2006. New Money Projects Our sizing analysis,based on the New Money Project costs provided in the RFP, suggests that a borrowing of approximately $19.930 million is feasible on a 30 year term with level debt service. For sizing purposes, we assumed "AAA" bond insurance, a cash funded debt service reserve fund, and interest rates as of August 3, 2006. The maximum annual debt service would be approximately $2.322 million(includes debt service on the California DWR Loan)and in order to provide at least 1.10x debt service coverage of MADS would require $2.554 million in projected Net Revenues available to pay debt service. We would note that coverage of historical Water System Net Revenues to MADS would provide estimated debt service coverage of 1.165x(based upon 2005 Net Revenues). In order to refine our bond capacity analysis, we will need to obtain clarification and additional information on a number of factors involving the District's Water System,both in terms of its existing finances and projected results. The chart below illustrates our Option No. I which layers in the new money financing on top of the refunding debt service for the 1996 COPs as well as the California DWR Loan. The RFP mentions other components of the financing that would need to be amortized over a shorter life but we did not have the information necessary to model that additional assumption. FtC Capita[ Mtrkrets 16 Proposal'I o.Provide Underwriting Services 'Truckee-Donner PUD 2006 Debt Service&Existing Bonds Level Solution 2.4 — 2.2 2.0 - -- -- 1.8 - - -- -- ----- 1.6 1.4 -- — 1.2 10 0.8 0.6 0.4 - 0.2 0.0 r 00 p Otiry p 01b Otis otib O`Y^oti�01Q O��Off,O��O��Oda O�y orb ti ti ti ti ti ti ti ti ti ti ti ti ti T 19 ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ■California DWR Loan ®Refunded 1996 COP DS UNet Money Level DS Possible Alternative to Lower MADS. If the District desires to improve financial flexibility to issue future parity obligations, a better debt service shaping solution may be to maintain a near level MADS by shaping the debt service for the New Money Projects around the existing debt service for the California DWR Loan as well as the refunded debt service for the 1996 COPS. This approach may assist the District in meeting a parity test for future borrowing which requires that Net Revenues cover MADS by a minimum of 1.1 Ox. This alternative is charted below. 2006 Debt Service&Existing Bonds Wraparound Solution 2.4 2.2 2.0 1.8 L6 1.4} 1.2 i LO+ 0.8 - 0.6 0.4 0.2 0.0 ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ■Califomia DWR Loan ®Refunded 1996 COP DS ❑New Money Wrap Around DS The results of the two alternatives discussed above are summarized in the table below. RBC Capital 17 Market Proposal To Provide Unde� riting Services Truckee-Danner PUD New Money and Combined Issue Results Truckee Donner Public Utility District Interest Rates As of 08-03-06 Option No. I Combined New Money and Refunding Assumed Credit Rating Aaa/AAA Aaa/AAA Assumed Underlying Credit Rating "A"category "A"category Par Amount $27,695,000 $27,895,000 DSR Deposit-Cash 2,015,580 1,901,800 Bond Insurance Premium 45 Basis Points 45 Basis Points Average Coupon 4.763% 4.746% True Interest Cost 4.584% 4.673% All-in-Cost(AIC) 4.710% 4.789% Combined Debt Service Payments Total Gross Debt Service $49,089,625 $54,123,420 Total Net Debt Service 44,712,841 49,932,460 A set of detailed bond sizing reports are attached in Appendix III. We would note that gross debt service is materially higher for Option No. 2 but the impact on borrowing costs as measured by the All-In Cost (AIC) is a fairly nominal 7 basis points. The MADS between Option No. 1 and Option No. 2 is shaved by approximately $318,000 which could be of significance to the District as the recent rate increases are implemented and the cash reserves of the Water System stilll require several years to ramp up to their intended amounts. Layering in future debt service will be significantly easier and probably less expensive under Option No. 2 as the ability to place principal maturities in the latter years of a debt service amortization schedule could require the use of capital appreciation bonds or other such instruments. 6. FINANCING TEAM RBC Capital Markets' financing team for the District's financing will include two senior bankers experienced with utility and structured financings. Mr. Terry Maas, Director, and Mr. Richard H. Clark, Director, will co-lead the financing team assisted by Mr. Randy Merritt, Vice President. Messrs. Maas, Clark and Merritt are located in the firm's Los Angeles office. RBC Capital Markets' senior bankers possess many years of experience managing revenue bond transactions. These individuals would be available to attend meetings, answer questions and provide advice through all stages of a proposed financing. Mr. Peter Auzers is located in the firm's San Francisco office which is the location of the firm's West Coast Underwriting Desk. Mr. Auzers would be responsible for underwriting the District's debt offering. Mr. Guy Murdock, located in Chicago, would assist Mr. Auzers as the Senior Underwriter for the District's transaction. The two of them would interface with the bankers for the preliminary structuring of the transaction as well as price the issue at the time of the primary underwriting. Mr. Murdock and Mr. Auzers would be assisted in his capacity as Underwriter by other sales and trading personnel who would direct the retail and institutional sales efforts for the firm. Mr. Steven Bernstein, Associate, would provide quantitative analysis and account support. He would assist with formulating alternative financing scenarios, participate in the composition and review of the bond indenture, review legal documents for consistency with the proposed financing structure, and assist with the pricing of the financing on the day of sale. Mr. Bernstein has served in a junior role on a number of structured 8 RBC Capital 18 .M,arke-ts Proposal To Provide Underwriting Services Truckee-Donner P[JD financings and is quite familiar with the detail involved with the bond structuring, marketing and pricing process. Terry Maas Director Los Angeles Co-Lead Banker (213)3624132 Richard Clark Director Los Angeles Co-Lead Banker (213)3624131 Randy Merritt Vice President Los Angeles Support Banker (213)3624119 Guy Murdock Managing Director Chicago Senior Underwriter (312)559-1683 Peter Auzers Director San Francisco Lead Underwriter (415)445-6380 Steven Bernstein Associate Los Angeles Support Banker (213)3624134 Brief resumes for our banking and underwriting team are included in Appendix Il. 7, WHY RBC CAPITAL MARKETS? RBC Capital Markets believes that selection of our firm should be based upon our ability to provide the District with experienced investment banking personnel, a strong capitalization, the demonstrated ability to price the District's securities at or through market levels and the ability to offer a regional focus with all of the resources of a national firm. We believe that RBC Capital Markets meets and exceeds all of the above criteria that will translate into unique values to the District for this financing. EXPERIENCED BANKING PERSONNEL The RBC Capital Markets bankers assigned to the District's account have a demonstrated history of innovation and creativity regarding revenue obligation borrowings. We believe that our knowledge of many other revenue obligation recent financings will assist in presenting the District's credit to the rating agencies and bond insurers. Mr. Maas and Mr. Clark have been involved with numerous rated and insured revenue credits that under current budgetary and market conditions have qualified for high underlying credit ratings and competitive bond insurance premium quotes. STRONG CAPITALIZATION RBC Capital Markets recognizes that an investment banking firm's capital is a critical factor for successful bond underwriting and marketing. The table to the right describes the strong capital position of RBC Capital Markets that is further bolstered by the capitalization of its NYSE-listed holding company parent, The Royal Bank of Canada. ABILITY TO PRICE AT OR THROUGH MARKET LF..VELS The firm's performance in pricing individual credits can be compared daily with the performance of other firms. RBC Capital Markets maintains a large secondary market inventory in order to satisfy the investment and market- making needs of our clients as well as to support the financing needs of issuers. This commitment to the secondary is rewarded by retail and institutional investors who will buy bonds from RBC Capital Markets at higher prices(lower yields)than our competition. REGIONAL FIRM WITH NATIONAL FOCUS As a regional firm,RBC Capital Markets is uniquely focused and committed to the State of California. The firm was founded in San Francisco in 1858 and has consistently expanded its presence with the opening of regional offices and careful acquisitions. In fact, the underwriter for the District's 1996 COPS was Rauscher Pierce Warkets 1G Capital 19 pro osal To Provide Unde►x ritino�Services "Truckee-Donner P(.J11) Refsnes, Inc. who is a predecessor firm to RBC Capital Markets. The firm has local retail offices in both Sacramento/Roseville and Reno that would be actively involved in the marketing of the District's obligations. RBC Capital Markets has the unique distinction of being the only investment bank in the nation ranked in the top 10 in terms of key municipal industry indicators(senior manager,number of issues and financial advisor)for four out of the last five years. This performance is representative of the breadth of our practice and the scope of the clients and markets we serve. COMNUTMEN'T"'T'O PuBt,tc FINANCE While many firms have scaled back or eliminated their public finance activities, we have continued to expand our commitment. Over the past decade, we have fortified our Fixed Income Capital Markets division, specifically our Fixed Income Banking group,through a series of acquisitions and mergers as well as new hires. 8. PROPOSED FEE SCHEDULE For the following assumed issue size of a fixed rate, publicly offered bond issue in the amount of$27 million, under current market conditions, we would propose the following compensation in dollars per thousand. Please note that all fees are subject to negotiation. We have provided estimated fees for an insured as well as a non- insured, assumed"A"rated transaction. Our firm would not have an explicit requirement for separate Underwriter's Counsel as long as the District's Disclosure Counsel would be providing a 10(b)5 opinion and a reliance letter to the Underwriter. If Disclosure Counsel would not be preparing the COP Purchase Agreement,we would suggest that Underwriter's Counsel be engaged at a fee not to exceed $7,500 to draft the COP Purchase Agreement. We would propose to use Jeff Stava,Esq. at Nossaman,Guthner,Knox&Elliott LLP whose phone number is: (949)477-7632. Assumed Issue Size: $27,000,000 Aaa/AAA A/A A. Management Fee $ 1.00 $ 1.00 B. Expenses(1) 0.30 0.30 C. Takedown 4.25 4.75 D. Underwriting 0 0 TOTAL DISCOUNT $5.55 $6.05 Itemized below MSRB (.03 per$1,000) 810 BMA(.03 per$1,000) 810 Cal PSA(.01 per$1,000) 270 CDIAC(.25 per$1,000) 3,000 CUSIP($130 plus$12 each) 490 i-Deal(.04 per$1,000) 800 Day Loan 556 DTC 336 Out of Pocket& Miscellaneous(2) 454 Total $8,000 (2) Includes messenger,telephone,in-state travel and other miscellaneous costs. RBC; Capital 20 Markets Appendix I — Water and Wastewater Bond Experience Solid Waste,Water& Sciver Financing Experience 1 li Issuer Series t . Role ,Sale Date Par Amount State -- Issue Description " TBD 23,000,000 CA City of Ontario Wastewater Utility Water Recycling Facility Rev Bonds Series 2006 N SOLE TBD 60,000,000 CA Santa Paula Public Financing Auth Water Recycling Facility Rev Bonds Series 2006 N SOLE 1. 06/29/06 17,335,000 FL Emerald Coast Utility Autb Utility System Revenue Bond, Series 2006 N FA 2. 06/28/06 10,000,000 CO Inverness Water&Sanit DI General Obligation Bonds Series 2006 B N SOLE 3. 06/28/06 7,395,000 TX Trinity River Authority Revenue Improvement Bond, Series 2006 C LEAD 4. 06/27/06 11,775,000 TX Rowlett City-Texas Wtrwrks Swr Sys Rev Ref Imp Bonds Series 2006 N CO-MGR. 5. 06/23/06 2,650,000 AZ Pinal Co Industrial Dev Auth Waste Water Revenue Bonds Series 2006 N SOLE 6. 06/22/06 2,950,000 TX Denton MUD#4 Unlimited Tax Bonds Series 2006 C FA 7. 06/21/06 133,390,000 NM Albuquerque Co Wtr Util Auth Joint Wtr&Swr Sys Imp Rev Bonds Series 2006 A N SOLE 8. 06/21/06 78,435,000 FL Port St Lucie City-Florida Utility System Revenue Bonds Series 2006 N SOLE 9. 06/21/06 10,000,000 PA Springfield Twp Sewer Auth Guaranteed Sewer Rev Bonds Series 2006 A N CO-MGR 10. 06/15/06 61,300,000 AZ Mesa City-Arizona Utility Sytem Revenue Ref Bonds Series 2006 N LEAD 11. 06/15/06 1,290,000 TX Terranova West MUD Unlimited Tax Bonds Series 2006 C FA 12. 06/06/06 2,000,000 TX Carrollton City-Texas Tax Wtrwrks Swr Rev Cert of Oblig Series 2006 C FA 13. 06/05/06 4,000,000 TX Northampton MUD Wtrwrks&Swr Sys Unitd Tax Bonds Series 2006 C FA 14. 06/05/06 31,460,000 AZ Tucson City-Arizona Water System Revenue Ref Bonds Series 2007 N CO-MGR 15. 06/01/06 5,500,000 TX Clear Lake Water Authority Waterworks&Sewer Sys Bonds Series 2006 C FA 16. 05/26/06 17,000,000 CO Inverness Water&Sanit DI General Obligation Bonds Series 2006 A N SOLE 17. 05/25/06 1,655,000 TX Clovercreek MUD Wtrwrks&Swr Sys Rev Ref Bonds Series 2006 N SOLE 18. 05/18/06 11,870,000 TX Travis Co Water Cud Imp Dt#17 Unlimited Tax Bonds Series 2006 B C CO-MGR 19, 05/17/06 16,850,000 TX Montgomery Co MUD#46 Wtrwrks&Swr Sys Ultd Tax Bonds C FA 20. 05/15/06 4,000,000 TX Brazoria Co MUD#21 Unlimited Tax Bonds Series 2006 C FA 21. 05/11/06 10,850,000 TX Conroe-Texas Water&Sewer Sys Revenue Bonds Series 2006 C FA 22. 05/09/06 3,015,000 TX Harris Co MUD#173 Unlimited Tax Bonds Series 2006 C LEAD 23. 05/08/06 5,245,000 TX Canyon Regional Water Autb Contract Revenue Refunding Bonds Series 2006 N CO-MGR 24. 05/08/06 49,040,000 TX Canyon Regional Water Auth Contract Revenue Refunding Bonds Series 2006 N CO-MGR 25. 05/04/06 14,190,000 TX Northwest Harris Co MUD#5 Unlimited Tax Bonds Series 2006-A C FA 26. 05/02/06 49,075,000 TX Canadian River Manic Water Auth Contract Revenue Bonds Series 2006 N CO-MGR 27. 05/02/06 31,510,000 TX McKinney-Texas Wtrwrks&Swr Sys Rev Ref Bonds Series 2006 N CO-MGR 28. 05/01/06 10,310,000 TX Mesquite City-Texas Pub Prop Oblig&Wtr Swr Bonds Series 2006 N FA 29. 04/27/06 8,315,000 TX Harris Co MUD#120 Refunding Bonds Series 2006 N CO-MGR 30. 04/27/06 31,000,000 OH Ohio Water Development Authority Water Development Rev Notes Series 2006-A N SOLE 31. 04/26/06 4,000,000 TX Harris Co MUD#248 Unlimited Tax Bonds Series 2006 C FA 32. 04/25/06 5,590,000 TX Fort Bend Co MUD#46 Refunding Bonds Series 2006 N FA 33. 04/24/06 11,870,000 TX Georgetown City-Texas Utility System Rev&Ref Bonds Series 2006 A N SOLE 34. 04/21/06 4,345,000 PA Hamburg Municipal Authority Sewer Revenue Bonds N SOLE 35. 04/19/06 1,980,000 TX Montgomery Co MUD#90 Unlimited Tax Bonds Series 2006 C FA 36. 04/18/06 2,430,000 NJ Cumberland Co Utilities Auth Sewer Revenue Bonds Series 2006 B N SOLE 37. 04/18/06 990,000 TX Sugar Land City-Texas Comb Tax&Rev Certs of Oblig Series 2006 C CO-MGR 38. 04/07/06 2,525,000 TX Hams Co MUD#16 Unlimited Tax Refunding Bonds Series 2006 N SOLE 39. 04/03/06 9,420,000 PA Lower Perkiomen Vlly Reg Swr Autt Guaranteed Sewer Revenue Bonds Series of 2006 N SOLE 40. 03/29/06 3,230,000 TX Harris Co MUD 4122 Refunding Bonds Series 2006 N SOLE 41. 03/28/06 6,055,000 NJ Cumberland Co Utilities Auth Sewer Revenue Refunding Bonds Series 2006-A N SOLE 42. 03/29/06 38,925,000 FL Fort Myers City-Florida Utility Sys Revenue Bonds Series 2006 N FA 43. 03/28/06 2,640,000 TX Wellborn Special Utility DI Water System Rev Ref Bonds Series 2006 N SOLE 44. 03/23/06 4,835,000 TX Clear Lake Water Authority Wtrwrks&Swr Sys Rev Ref Bonds Series 2006 N SOLE 45. 03/21/06 16,180,000 TX Garland City-Texas Water&Sewer System Rev Bonds Series 2006 N LEAD 46. 03/21/06 4,840,000 TX Grand Prairie City-Texas Wtr&Wstewtr Sys Revenue Bonds Series 2006 C CO-MGR 47. 03/21/06 182,905,000 TX Tarrant Regional Water DI Water Revenue Bonds Series 2006 N LEAD 48. 03/20/06 1,075,000 WI West Bend City-Wisconsin Water System Revenue Bonds Series 2006 C SOLE 49. 03/16/06 406,205,000 NY NYC Municipal Water Finance Autb Water&Sewer System Rev Bonds Fiscal 06 Set D N CO-MGR 50. 03/14/06 205,400,000 AZ Arizona Wtr Infrastruc Fin Autb Water Quality Revenue Bonds Series2006 A N CO-MGR 51. 03/10/06 8,750,000 TX Harris Co MUD#196 Unlimited Tax Refunding Bonds Series 2006 N LEAD 52. 03/07/06 4,755,000 TX Harris Co MUD#230 Unlimited Tax Refunding Bonds Series 2006 N LEAD 53. 03/02/06 3,330,000 TX Denton Co Fresh Wtr Sup Dt#9 Unlimited Tax Bonds Series 2006 C CO-MGR 54. 03/01/06 35,995,000 CA Madera Public Finance Auth Water&Wastewater Rev Bonds Series 2006 N SOLE 55. 02/28/06 3,179,000 TX Northwest Harris Co MUD#15 Refunding Bonds Series 2006 N SOLE 56. 02/27/06 6,405,000 TX Decatur-Texas Tax&Wtrwrks&Swr Rev Ref Bonds Series 2006 N SOLE 57. 02/23/06 6,660,000 TX Harris Co MUD#368 Refunding Bonds Series 2006 N LEAD 58. 02/21/06 6,500,000 TX Rockwall Co Consul MUD#1 Unlimited Tax Bonds Series 2006 C FA 59. 02/10/06 30,920,000 FL St Johns Co-Florida Ponte Vedra Utility Sys Rev Bonds Series 2006 N LEAD 60. 01/31/06 30,160,000 NJ Woodbridge Twp-New Jersey Sewer Utility Refunding Bonds Series 2006 N SOLE 61. 01/26/06 38,310,000 TX Galveston City-Texas Wtrwrks&Swr Sys Rev Ref Bonds Sereis 2006 N CO-MGR 62. 01/23/06 10,200,000 TX Red Oak-Texas Wtrwrks&Swr Sys Certs of Oblig Series 2006 N CO-MGR. Page I of 19 Solid Waste,Water& Sewer Financing Experience i il6 Sale 6Z-Par -kniount state Issuer - Issue Description Series Bid Role 63. 01/20/06 600,345,000 NY NYC Municipal Water Finance Auth Water&Sewer System Rev Bond, Series 2006 N CO-MGR 64. 01/19/06 5,405,000 TX Harris Co MUD#132 Wtrwrks&Swr Sys Rev Bonds Series 2006 C CO-MGR. 65. 01/19/06 9,670,000 PA Lower Perkiomen Vily Reg Swr Autt Guaranteed Sewer Rev Bonds Series 2006 N SOLE 66. 01/18/06 9,015,000 NJ Galloway Twp-New Jersey GO Imp&Swr Util Refunding Bonds Series 2006 N SOLE 67. 01/17/06 13,665,000 FL Fort Pierce-Florida Stormwater Utility Sys Rev Bonds Series 2006 N SOLE 68. 01/17/06 6,075,000 TX Southlake City-Texas Tax&Wtrwrks&Swr Sys Rev Series 2006 N LEAD 69. 01/12/06 16,165,000 TX Brazoria Co MUD#26 Unlimited Tax Bonds Series 2006 C LEAD 70. 01/10/06 2,755,000 TX Montgomery Co Utility Dt#2 Wtrworks&Swr Sys Rev Bonds Series 2006 C FA 71. 12/21/05 3,715,000 NJ Sussex Co Muni Utilities Auth Project Note Series 2005 N SOLE 72. 12/13/05 6,480,000 TX Bryan City-Texas Waterworks&Sewer Sys Rev Bonds Series 2005 N CO-MGR 73. 12/06/05 4,670,000 TX Cimarron MUD Wtrwrks&Swr Sys Revenue Bonds Series 2006 C FA 74. 12/06/05 5,010,000 TN Kingsport City-Tennessee Water&Sewer Sys Rev&Tax Bonds Series 2005 C FA 75. 12/06/05 49,270,000 TX Texas Water Development Board Wtr Financial Assist Ref Bonds Series 2005 C N CO-MGR 76. 12/05/05 2,585,000 TX Harris Co Water Cntl Imp Dt#21 Unlimited Tax Refunding Bonds Series 2006 N SOLE 77. 12/01/05 3,515,000 MN Duluth City-Minnesota GO Sewer Util Revenue Bonds Series 2005 F C SOLE 78. 12/01/05 5,000,000 TX Harris Co MUD#165 Unlimited Tax Bonds Series 2005 C FA 79. 12/01/05 6,295,000 TX Cinco MUD#8 Unlimited Tax Refunding Bonds Series 2005 N LEAD 80. 11/30/05 4,350,000 TX Harris Co Fresh Wtr Sup Dt#61 Unlimited Tax Bonds Series 2005 B C LEAD 81. 11/30/05 6,675,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2005 B C FA 82. 11/30/05 8,310,000 TX Clay Road MUD Refunding Bonds Series 2005 N LEAD 83. 11/30/05 298,805,000 CA Los Angeles City-California Wastewater System Rev Ref Bands Series 2005-A C CO-MGR 84. 11/23/05 4,965,000 TX Alvin-Texas Water and Sewer Sys Rev Ref Bonds Series 2005 N SOLE 85. 11/21/05 2,400,000 TX Brazoria Co MUD#6 Unlimited Tax Bonds Series 2005 C FA 86. 11/21/05 7,925,000 TX Harris Co MUD#172 Refunding Bonds Series 2005 N SOLE 87. 11/16/05 7,200,000 TX Harris Co MUD#158 Unlimited Tax Bonds Series 2005 C FA 88. 11/16/05 10,355,000 TX Brazos River Authority Water Supply Sys Rev Bonds Series 2005 B N LEAD 89. 11/15/05 4,800,000 TX South Shore Harbour MUD#7 Unlimited Tax Bonds Series 2005 C FA 90. 11/10/05 43,835,000 TX Upper Trinity Regional Water DI Wtr Supply Sytem Rev Ref Bonds Series 2005 N CO-MGR 91. 11/09/05 1,480,000 TX Harris Co MUD#16 Unlimited Tax Bonds Series 2005 C CO-MGR 92. 11/09/05 1,970,000 TX Galveston Co MUD#6 Unlimited Tax Bonds Series 2005 A C LEAD 93. 11/07/05 2,845,000 TX Montgomery Co MUD#60 Wtrwrks&Swr Sys Unitd Tax Bonds Series 2005 C LEAD 94. 11/02/05 5,725,000 TX Fort Bend Co MUD#30 Unlimited Tax Refunding Bonds Series 2005 N LEAD 95. 11/01/05 5,700,000 NJ Marlboro Twp Muni Utilities Auth Water Revenue Bonds Series 2005 N SOLE 96. 10/28/05 950,000 OH Urbana City-Ohio Ltd Tax GO Wtr Sys Imp Bonds Series 2005 C SOLE 97. 10/26/05 2,215,000 PA Kulpmont-Marion Hgts Jt Muni Au Sewer Revenue Bonds Series of 2005 N SOLE 98. 10/26/05 43,445,000 PA North Penn Water Authority Water Revenue Bonds Series of 2005 N SOLE 99. 10/25/05 1,840,000 TX Oakmont Public Utility Dt Umlimited Tax Bonds Series 2005 C FA 100. 10/19/05 1,940,000 TX Far Hills Utility Dt Wtrwrks&Swr Sys Tax Rev Bonds Series 2005 C CO-MGR 101. 10/13/05 9,500,000 TX Brushy Creek MUD Unlimited Tax Bonds Series 2005 C FA 102. 10/07/05 4,120,000 TX Northwest Hams Co MUD#29 Unlimited Tax Refunding Bonds Series 2005 N SOLE 103. 10/05/05 2,265,000 NJ Washington Twp Muni Util Auth Water and Sewer Rev Ref Bonds Series 2005 N SOLE 104. 10/03/05 11,200,000 TX Galveston Co Wtr Ctl Imp DOl2 Unlimited Tax Bonds Series 2005 C LEAD 105. 09/30/05 6,240,000 TX North Mission Glen MUD Refunding Bonds Series 2005 A N LEAD 106. 09/30/05 524,530,000 NY NYC Municipal Water Finance Auth Water&Sewer System Rev Bonds Fiscal 2006 Series A N CO-MGR 107. 09/28/05 17,260,000 FL Palm Bay City-Florida Utility System Imp Revenue Bon& Series 2005A N SOLE 108. 09/28/05 295,240,000 FL Miami-Dade Co-Florida Water&Sewer Sys Rev Ref Bonds Series 2005 N LEAD 109. 09/27/05 2,045,000 TX Forney City-Texas Wtrwks&Swr Rev Certs of Oblig Series 2005B C CO-MGR 110. 09/27/05 16,875,000 TX Killeen City-Texas Wtrwks&Swr Sys Rev Ref Bonds Series 2005 N LEAD 111. 09/21/05 28,380,000 TX Port of Houston-Texas Refunding Bonds Series 2006A N CO-MGR 112. 09/2 U05 132,985,000 NM Albuquerque Co Wtr Util Auth Joint Wtr&Swr Sys Imp Rev Bonds Series 2005 N LEAD 113. 09/15/05 1,650,000 TX Louetta North Public Utility DI Unlimited Tax Bonds Series 2005 C LEAD 114. 09/14/05 4,040,000 TX Cimarron MUD Comb Unitd Tax&Rev Ref Bonds&CABS Series 2005 N SOLE 115. 09/14/05 4,765,000 FL Port St Lucie City-Florida Special Assessment Bonds Series 2005 B N SOLE 116. 09/12/05 3,590,000 TX Denton MUD#4 Unlimited Tax Bonds Series 2005A C FA 117. 09/12/05 7,595,000 TX Woodlands Metro Center MUD Unlimited Tax Refunding Bonds Series 2005 N SOLE 118. 09/09/05 24,160,000 FL Palm Bay City-Florida Utility Sys Refunding Rev Bonds Series 2005B N SOLE 119. 09/08/05 3,050,000 TX Galveston Co MUD#29 Ultd Tax Wuwrks&SwrSys Ref Bonds Series 2005 C FA 120. 09/08/05 4,060,000 TX Cinco MUD#5 Unlimited Tax Refunding Bonds Series 2005 N LEAD 121. 09/06/05 10,230,000 TX Grand Prairie City-Texas Water&Wastewater Sys Rev Bonds Series 2005 A N LEAD 122. 09/01/05 4,445,000 OH Cuyahoga Co-Ohio GO Ltd Tax Sewer Dt Imp Bonds Series 2005 C FA 123. 08/25/05 11,160,000 IN Indiana Bond Bank Special Program Bonds Series 2005 C N SOLE 124. 08/25/05 46,525,000 TX Lubbock City-Texas Tax Wtrwks Sys Rev Cert of Oblig Series 2005 N CO-MGR 125. 08/24/05 36,665,000 TX Port of Houston-Texas Refunding Bonds Series 2005A N CO-MGR 126. 08/24/05 62,485,000 TX Port of Houston-Texas Refunding Bonds Series 2005B N CO-MGR. Page 2 of 19 . . Solid Waste,Water& Sewer Financing Experience i lip Bid kok Sale Date Par Amount State Issuer issue Description Series 127. 08/23/05 1,900,000 TX Sienna Plantation MUD#10 Unlimited Tax Bonds Series 2005 C FA 128. 08/23/05 3,000,000 TX Acton MUD Utility System Revenue Bond: Series 2005 C CO-MGR 129. 08/17/05 2,450,000 TX Montgomery Co MUD#67 Unitd Tax Refunding Bonds Series 2005 N SOLE 130. 08/17/05 4,260,000 TX Harris Co Fresh Wtr Sup Dt#61 Unitd Tax Refunding Bonds Series 2005 N SOLE 131. 08/17/05 6,955,000 NE Columbus City-Nebraska Combined Revenue&Refunding Bonds Series 2005 C CO-MGR. 132. 08/15/05 1,715,000 TX Harris Co MUD#373 Unlimited Tax Bonds Series 2005 C FA 133. 08/15/05 4,900,000 WI Sheboygan City-Wisconsin Water Utility Revenue Bonds Series 2005 C FA 134. 08/09/05 6,400,000 TX Harris Cc MUD 953 Wtrwrks&Swr Sys Comb Rev Bonds Series 2005 C LEAD 135. 08/08/05 9,020,000 TX West University Place-Texas Waterworks&Sewer Rev Ref Bonds Series 2005 N FA 136. 08/01/05 5,920,000 TX Brazoria Co MUD#21 Unlimited Tax Bonds Series 2005 C FA 137. 08/O1/05 6,415,000 TX Rockwall City-Texas Wtrwrks&Swr Sys Ref&Imp Bonds Series 2005 N LEAD 138. 07/28/05 1,500,000 TX Harris Co Fresh Water Supply Dt#58 Wtrwrks&Swr Sys Ultd Tax Bonds Series 2005 C FA 139. 07/28/05 28,725,000 TX Cedar Park City-Texas Utlity Sys Rev&Ref Bonds Series 2005 N CO-MGR 140. 07/27/05 5,400,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2005A C LEAD 141. 07/27/05 6,310,000 PA Limerick Twp Muni Authority Guar Sewer Revenue Bonds Series of 2005 N SOLE 142. 07/27/05 8,950,000 TX Fort Bend Co MUD#118 Unlimited Tax Bonds Series 2005 C LEAD 143. 07/26/05 2,000,000 TX Hurst Creek MUD Unlimited Tax Bonds Series 2005 C CO-MGR 144. 07/26/05 12,540,000 OR Eugene City-Oregon Water Utility Sys Rev Ref Bonds Series 2005 C CO-MGR 145. 07/25/05 2,565,000 TX Trail of the Lakes MUD Unlimited Tax Bonds Series 2005 C LEAD 146. 07/21/05 3,350,000 TX Denton Co Fresh Wtr Supp Dt#6 Unlimited Tax Utility Sys Bonds Series 2005 C CO-MGR 147. 07/21/05 9,890,000 TX Harris Co MUD#368 Unlimited Tax Bonds Series 2005 C LEAD 148. 07/21/05 30,715,000 TN Knoxville City-Tennessee Wtr&Wastewtr Rev Ref Bonds Series 2005 C CO-MGR 149. 07/20/05 6,420,000 TX Laredo City-Texas Wtrwrks&Swr Sys Rev Bonds Series 2005 N CO-MGR 150. 07/14/05 36,110,000 FL Tallahassee City-Florida Consul Util Sys Ref Rev Bonds Series 2005 N LEAD 151. 07/01/05 10,030,000 NV North Las Vegas-Nevada GO Ltd Tax Watr&Swr Ref Bonds Series 2005B C CO-MGR 152. 06/30/05 43,080,000 TX Lubbock City-Texas Tax Wtrwrks System Rev Ref Bonds Series 2005 N LEAD 153. 06/28/05 33,780,000 TX Montgomery Co MUD#46 Waterworks&Swr Ultd Tax Bonds Series 2005 C FA 154. 06/23/05 5,845,000 TX Fort Bend Co MUD#81 Refunding Bonds Series 2005 N SOLE 155. 06/22/05 1,430,000 TX Harris Cc MUD#233 Unitd Tax Bonds' Series 2005 C SOLE 156. 06/22/05 4,050,000 SC Laurens Co Water and Sewer Comrr General Obligation Bonds Series 2005 C CO-MGR 157. 06/21/05 2,140,000 TX Harris Co MUD#109 Unitd Tax Bonds Series 2005 C FA 158. 06/16/05 16,825,000 TX Walnut Creek Special Utility DI Water Sys Revenue Ref Bonds Series 2005 N CO-MGR 159. 06/15/05 4,000,000 TX Harris Co MUD#238 Unlimited Tax Bonds Series 2005 C LEAD 160. 06/15/05 11,200,000 MI Holland-Michigan Water Supply Sys Revenue Bonds Series 2005B C CO-MGR 161. 06/15/05 16,000,000 TX Brazoria Co MUD#26 Unitd Tax Bonds Series 2005 C SOLE 162. 06/15/05 112,390,000 CA California Dept of Wtr Resources Water Sys Revenue Bonds Series AD N CO-MGR 163. 06/14/05 4,900,000 TX Hurst City-Texas Tx&Wtrwrks&SwrSys Rev Certs of Ob Series 2005 C CO-MGR 164. 06/09/05 13,710,000 NM Roswell-New Mexico Jt Water&Sewer Imp Rev Bonds Series 2005 N SOLE 165. 06/08/05 9,000,000 NV Carson City-Nevada GO Water Bonds Series 2005A C CO-MGR 166. 06/08/05 21,225,000 NM Rio Rancho-New Mexico Wtr&Wastewtr System Rev Bonds Series 2005 N FA 167. 06/07/05 1,725,000 WI Sun Prairie-Wisconsin Water&Light Utility Rev Bonds Series 2005 N SOLE 168. 06/07/05 4,230,000 TX Harris Co MUD#284 Unlimted Tax Bonds Series 2005 C SOLE 169. 06/07/05 4,805,000 TX Fort Bend Co MUD#46 Unlimited Tax Bonds Series 2005 C FA 170. 06/07/05 7,015,000 MN Buffalo City-Minnesota GO Water&Swr Rev Bonds Series 2005 A C CO-MGR 171. 06/06/05 2,550,000 TX Harris Co MUD#361 Unlimited Tax Bonds Series 2005 C FA 172. 06/02/05 600,000,000 AZ Phoenix City Civic Improv CorF Jr Lien Water System Rev Bonds Series 2005 N CO-MGR 173. 05/31/05 3,180,000 ND Bismarck City-North Dakota Refunding Improvement Bonds 2005 Series S C LEAD 174. 05/25/05 21,435,000 FL St Augustine City-Florida Water and Sewer Rev Rev Bonds Series 2005 N SOLE 175. 05/24/05 5,160,000 TX Lavaca-Navidad River Authority Water Supply Facs Rev Ref Bonds Series 2005 N SOLE 176. 05/24/05 15,000,000 TX Beaumont City-Texas Waterworks&Sewer Sys Rev Bonds Series 2005 C FA 177. 05/24/05 62,205,000 ND North Dakota Water Commission Water Dev&Management Prog Bonds Series 2005 B N SOLE 178. 05/23/05 1,525,000 MN Shorewood-Minnesota GO Water Rev Bonds Series 2005A C SOLE 179. 05/19/05 28,260,000 TX Canadian River Munic Water Auth Contract Rev Ref Bonds Series 2005 N CO-MGR. 180. 05/18/05 1,375,000 TX West Harris Co MUD#11 Unlimited Tax Bonds Series 2005A C FA 181. 05/17/05 25,635,000 KY Hopkinsville-Kentucky Water&Sewer Rev Bonds Series 2005A C CO-MGR 182. 05/12/05 9,600,000 TX Clear Lake Water Authority Wtrwrks&Swr Unitd Tax Rev Bonds Series 2005 C LEAD 183. 05/11/05 2,865,000 TX Hams Co MUD#71 Unlimited Tax Refunding Bonds Series 2005 A N SOLE 184. 05/09/05 1,490,000 TX West Harris Co MUD#10 Unlimited Tax Bonds Series 2005 C CO-MGR 185. 05/03/05 5,115,000 TX Palmer Plantation MUD#1 Wtrwrks Swr Tax&Rev Ref Bonds Series 2005 N LEAD 186. 04/28/05 2,850,000 TX Harris Co MUD#389 Unlimited Tax Bonds Series 2005 C FA 187. 04/25/05 4,630,000 TX Iowa Park City-Texas Tax Wtrwks Swr Rev Certs of Oblig Series 2005 N SOLE 188. 04/21/05 93,875,000 TX North Harris Co Regional Water Au Sr Lien Revenue Bonds Series 2005 N FA 189. 04/20/05 6,925,000 FL Clearwater City-Florida Stormwater Sys Rev Ref Bonds Series 2005 C FA 190. 04/20/05 9,110,000 TX Harris Co MUD#372 Unitd Tax Refunding Bonds Series 2005 N SOLE Page 3 of 19 Solid 1 ii Sale Date ar Amount State Issuer I Issue Description Series Bid Role 191. 04/20/05 10,910,000 FL Fort Walton Beach-Florida Utility System Revenue Bond: Series 2005 N FA 192. 04/20/05 48,125,000 TX Canadian River Munic Water Auth Contract Revenue Bonds Series 2005 N LEAD 193. 04/20/05 559,205,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2005 Ser D N CO-MGR 194. 04/19/05 29,750,000 TX Tyler-Texas Water and Sewer Revenue Bonds Series 2005 N CO-MGR 195. 04/14/05 5,050,000 OR Sunrise Water Authority Subordinate Lien Water Rev Bonds Series 2005 N SOLE 196. 04/14/05 94,575,000 TX Nueces River Authority Water Supply Facs Rev Ref Bonds Series 2005 N LEAD 197. 04/06/05 76,740,000 FL Broward Co-Florida Water&Sewer Utility Rev Bonds Series 2005A N CO-MGR 198. 04/04/05 13,510,000 TX Mesquite City-Texas Wtrwrks&Swr Rev Ref&Imp Bonds Series 2005 N FA 199. 03/29/05 4,250,000 TX Harris Co MUD#1 Unitd Tax Refunding Bonds Series 2005 N LEAD 200. 03/28/05 2,015,000 IA Marshalltown-Iowa Sewer Revenue Refunding Bonds Series 2005A C SOLE 201. 03/24/05 9,725,000 TX Fort Bend Co MUD#42 Unlimited Tax Refunding Bonds Series 2005 N LEAD 202. 03/24/05 61,060,000 TX San Antonio City-Texas Muni Drain Util System Rev Bonds Series 2005 N CO-MGR 203. 03/23/05 9,215,000 TX Remington MUD#1 Unlimited Tax Bonds Series 2005 C LEAD 204. 03/22/05 20,545,000 TX Garland City-Texas Water and Sewer Revenue Bonds Series 2005 N LEAD 205. 03/21/05 36,475,000 TX Longview City-Texas Waterworks&Sewer Revenue Bonds Series 2005 N CO-MGR 206. 03/17/05 21,630,000 ND North Dakota Water Commission Water Dev&Mgt Prog Ref Bonds 2005 Series A N SOLE 207. 03/16/05 13,810,000 PA Bear Valley-Pennsylvania Water Revenue Bonds Series of 2005 N SOLE 208. 03/15/05 5,725,000 TX Grand Prairie City-Texas Water&Wastewater Revenue Bonds Series 2005 N LEAD 209. 03/15/05 8,645,000 AZ Goodyear Comm Facs Util Dt#1 GO Project&Refunding Bonds Series 2005 N SOLE 210. 03/11/05 6,355,000 TX Fort Bend Co MUD#1 Refunding Bonds Series 2005 N LEAD 211. 03/10/05 3,770,000 ME Maine Municipal Bond Bank Sewer&Water Revenue Bonds 2005 Series A N CO-MGR 212. 03/10/05 9,660,000 TX Sienna Plantation MUD#2 Refunding Bonds Series 2005 N LEAD 213. 03/10/05 71,795,000 TX West Harris Co Regional Wtr Au Water System Rev Bonds Series 2005 N FA 214. 03/09/05 1,360,000 TX Harris Co MUD#46 Unlimited Tax Bonds Series 2005 C CO-MGR 215. 03/08/05 3,275,000 TX Harris Co MUD#344 Unlimited Tax Bonds Series 2005 C FA 216. 03/08/05 20,145,000 TX Fort Bend Co MUD#25 Refunding Bonds Series 2005 N LEAD 217. 03/03/05 4,900,000 TX Fort Bend Co MUD#115 Unlimited Tax Bonds Series 2005 C FA 218. 03/03/05 4,910,000 TX Montgomery Co MUD#39 Unitd Tax Refunding Bonds Series 2005 N LEAD 219. 03/03/05 9,920,000 TX Montgomery Co MUD#47 Refunding Bonds Series 2005 N LEAD 220. 03/03/05 582,915,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2005 Ser C N CO-MGR 221. 03/02/05 2,000,000 TX West Hams Co MUD#11 Unitd Tax Bonds Series 2005 C FA 222. 03/02/05 40,655,000 FL Seminole Co-Florida Water&Sewer Revenue Ref Bonds Series 2005 N CO-MGR 223. 03/01/05 3,325,000 TX Denton MUD#4 Unlimited Tax Bonds Series of 2005 C SOLE 224. 03/01/05 4,820,000 TX Northwest Harris Co MUD#28 Refunding Bonds Series 2005 N LEAD 225. 02/28/05 2,365,000 WI McFarland Village-Wisconsin Water&Sewer Revenue Bonds N SOLE 226. 02/28/05 6,670,000 PA West Earl Sewer Authority Guar Sewer Revenue Bonds Series of 2005 N SOLE 227. 02/24/05 5,425,000 NJ North Bergen Twp Muni Util Au Sewer Rev Sub Proj Notes Series 2005 N SOLE 228. 02/23/05 3,325,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2005 C FA 229. 02/18/05 27,675,000 FL Indian River Co-Florida Water and Sewer Rev Ref Bonds Series 2005 N SOLE 230. 02/17/05 174,965,000 FL Tampa Bay Water Auth Utility Sys Ref&Imp Rev Bonds Series 2005 N CO-MGR 231. 02/15/05 10,000,000 TX Carrollton-Texas Waterworks&Sewer Rev Bonds Series 2005 N FA 232. 02/15/05 54,110,000 TX Carrollton-Texas GO Improvement&Ref Bonds Series 2005 N FA 233. 02/10/05 10,000,000 None Sewer Revenue Bonds Series of 2005 N SOLE 234. 02/10/05 10,000,000 PA Suburban Lancaster Sewer Auth Sewer Revenue Bonds Series of 2005 N SOLE 235. 02/09/05 4,970,000 TX Galveston Co MUD#6 Unlimited Tax Bonds Series 2005 C FA 236. 02/08/05 8,300,000 TX Harris Co MUD#1 Unlimited Tax Bonds Series 2005 C FA 237. 02/07/05 6,775,000 PA Mount Joy Borough Auth Guar Water Revenue Bonds Series of 2005 N SOLE 238. 02/02/05 3,900,000 MI Jackson Co-Michigan Wastewater Disposal Fac Bonds Series 2005 C CO-MGR. 239. 01/26/05 3,100,000 PA Red Lion Municipal Authority Sewer Revenue Bonds Series of 2005 N SOLE 240. 01/26/05 3,325,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2005 C FA 241. 01/25/05 1,925,000 PA Muncy Borough Municipal Autb Guaranteed Sewer Revenue Bonds Series of 2005 N SOLE 242. 01/20/05 53,285,000 FL Cape Coral City-Florida Wstewtr&Irr Wtr Ref Ass Bonds Series 2005 N FA 243. 01/20/05 85,790,000 SC Greenville City-South Caroling Wtrwks Sys Ref&Imp Rev Bonds N CO-MGR 244. 01/19/05 4,350,000 TX Harris Co MUD#371 Unitd Tax Bonds Series 2005 C SOLE 245. 01/19/05 7,510,000 NJ Bloomfield Twp-New Jersey GO Imp&Water Utility Ref Bonds Series 2005 N SOLE 246. O1/13/05 1,070,000 TX Forest Hills MUD Waterworks&Sewer Rev Bonds Series 2005 C SOLE 247. 01/13/05 3,900,000 TX Timber Lane Utility D1 Unlimited Tax Bonds Series 2005 C CO-MGR 248. 01/12/05 435,000 OR Milton Freewater City-Oregon Water&Sewer Refunding Rev Bonds Series 2005 N SOLE 249. 01/11/05 4,835,000 TX Fort Bend Co MUD#34 Unlimited Tax Bonds Series 2005 C LEAD 250. 01/10/05 5,530,000 NM Alamogordo-New Mexico Joint Water&Sewer Imp Rev Bonds Series 2005 N SOLE 251. 01/10/05 22,740,000 NM Gallup-New Mexico Joint Utility Imp Rev Bonds Series 2005 N SOLE 252. 01/07/05 70,390,000 TX Corpus Christi City-Texas Utility System Rev Ref Bonds Series 2005 N CO-MGR 253. 01/05/05 5,800,000 TX Dowdell Public Utility D1 Unitd Tax Bonds Series 2005 C FA 254. 12/17/04 102,020,000 AZ Phoenix City Civic Improv Corp Sr Lien Wstwtr Sys Rev Ref Bonds Series 2004B N CO-MGR Page 4 of 19 Solid Waste,Water& Sciver Financing Experience 1 116 Issuer Issue Description Series Bid Role Sale Date ParAmount State 255. 12/16/04 6,650,000 PA Red Lion Municipal Authority Water Revenue Bonds Series of 2005 N SOLE 256. 12/16/04 55,110,000 AZ Tucson City-Arizona Water Sys Rev Ref Bonds Series 2005 N CO-MGR 257. 12/15/04 272,070,000 CA California Dept of Wtr Resources Water System Revenue Bonds Series AC N CO-MGR 258. 12/08/04 1,800,000 TX Harris Co MUD#248 Unlimited Tax Bonds Series 2005 C LEAD 259. 12/08/04 6,240,000 TX Montgomery Cc MUD#60 Refunding Bonds Series 2005 N LEAD 260. 12/02/04 9,340,000 PA Montgomery Twp Muni Sewer Auth Guar Sewer Revenue Bonds Series 2005 N SOLE 261. 12/01/04 180,000,000 AZ Phoenix City Civic Improv Corp Jr Lien Wstwtr Sys Rev Bonds Series 2004 N CO-MGR 262. 11/30/04 25,075,000 CA San Buenaventura-California Wastewtr Rev Cer of Participation Series 2004 N SOLE 263. 11/23/04 4,450,000 TX South Shore Harbour MUD#7 Waterworks&Sewer Sys Rev Bonds Series 2004 C FA 264. 11/23/04 15,155,000 FL Callaway-Florida Wastewater Sys Rev Ref Bonds Series 2004 N CO-MGR 265. 11/23/04 935,480,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2005 Series B N CO-MGR 266. 11/19/04 55,245,000 PA Bucks Co Water&Sewer Authority Revenue Bonds Series 2004 1-2 N CO-MGR 267. 11/18/04 18,250,000 TX Northwest Harris Cc MUD#5 Unlimited Tax Bonds Series 2004 N LEAD 268. 11/18/04 56,815,000 FL Polk Co-Florida Utility System Rev&Ref Bonds Series 2004 A&B N FA 269. 11/17/04 2,075,000 TX Chambers Cc MUD#1 Unlimited Tax Bonds Series 2004 C LEAD 270. 11/17/04 2,775,000 TX Northwest Park MUD Unlimited Tax Bonds Series 2004 C CO-MGR 271. 11/17/04 7,650,000 TX Harris Co MUD#153 Unlimited Tax Bonds Series 2004 A C FA 272. 11/16/04 4,440,000 TX Brazoria Cc MUD#6 Unlimited Tax Bonds Series 2004-A C LEAD 273. 11/16/04 10,500,000 TX Denton Co Fresh Wtr Supply Dt#6 Unlimited Tax Util Sys Bonds Series 2004 C CO-MGR 274. 11/10/04 3,275,000 TX Montgomery Co MUD#67 Wtrwks&Swr Sys Unitd Tax Bonds Series 2004 C FA 275. 11/10/04 5,000,000 TX Harris Co Water Cntl Imp Dt#110 Wtrwrks&Swr Sys Unitd Tax&Rev Series 2004 C FA 276. 11/09/04 2,990,000 TX Montgomery Cc MUD#39 Wtrwrks&Swr Sys Unitd Tax Bonds Series 2004 C LEAD 277. 11/08/04 3,500,000 TX Grand Lakes MUD#2 Unlimited Tax Bonds Series 2004 C CO-MGR 278. 11/08/04 6,965,000 TX Canyon-Texas Tx,Wtr&Swr Sys Surp Rev Cert Series 2004 N SOLE 279. 11/04/04 2,700,000 TX Woodcreek Reserve MUD Unlimited Tax Bonds Series 2004 C FA 280. 11/04/04 9,460,000 FL Gulf Breeze-Florida Utility System Ref Revenue Bonds Series 2004 N SOLE 281. 11/04/04 22,990,000 TX Upper Trinity Regional Water Dt Reg Treat Wtr Sup Sys Rev Bonds Series 2004 N CO-MGR 282. 11/03/04 5,525,000 TX Fort Bend Cc MUD#119 Unlimited Tax Bonds Series 2004 C FA 283. 11/03/04 317,175,000 MA Massachusetts Wtr Pollut Abate Tr Pool Program Bonds Series 10 N CO-MGR 284. 10/27/04 2,535,000 TX Kings Manor MUD Wtrwrks&Swr Unitd Tax Ref Bonds Series 2004 N LEAD 285. 10/27/04 93,680,000 IA Des Moines Met Wstwtr Rec An Sewer Revenue Bonds Series 2004 A&B N CO-MGR 286. 10/22/04 5,800,000 OR Multnomah Co Drainage Dt#1 GO Refunding Assessment Bonds Series 2004 N SOLE 287. 10/21/04 3,750,000 TX Hays Co Water Cntrl&Imp Dt#1 Unlimited Tax Bonds Series 2004 C CO-MGR 288. 10/20/04 2,230,000 TX West Harris Cc MUD#2 Wtrwrks&Swr Sys Tax&Rev Bonds Series 2004 C FA 289. 10/19/04 4,880,000 TX Harris Cc MUD#109 Wtrwrks&Swr Sys Tax&Rev Bonds Series 2004 C FA 290. 10/19/04 7,520,000 CA Morgan Hill Fin Auth Water Revenue Bonds Series 2004 C FA 291. 10/12/04 4,500,000 TX Kenedy City-Texas Tx&Wtr&Swr Sys Rev Cert Oblig Series 2004 N FA 292. 10/12/04 20,200,000 TX Killeen-Texas Waterworks&Sewer Sys Rev Bonds Series 2004 N LEAD 293. 10/07/04 6,635,000 TX Northgate Crossing MUD#2 Unlimited Tax Bonds Series 2004 C CO-MGR 294. 09/29/04 1,810,000 TX Harris Co MUD#172 Unlimited Tax Bonds Series 2004 C LEAD 295. 09/29/04 15,160,000 KY Kentucky Rural Water Fin Corp Public Proj Ref&Imp Rev Bonds Series 2004D C CO-MGR 296. 09/29/04 16,000,000 TX Brazoria Co MUD#26 Unlimited Tax Bonds Series 2004A C LEAD 297. 09/28/04 3,100,000 TX Lubbock City-Texas Tx&Wtrwrks Sys Rev Cert Oblig Series 2004 N CO-MGR 298. 09/24/04 21,250,000 TX Montgomery Co MUD#46 Wterworks&Swr Sys Unitd Tax Bonds Series 2004 C FA 299. 09/22/04 2,145,000 TX Harris Co MUD#233 Refunding Bonds Series 2004 N SOLE 300. 09/14/04 18,585,000 TX Rowlett City-Texas Waterworks&Sewer Sys Rev Bonds Series 2004A N LEAD 301. 09/14/04 24,500,000 MI Dearborn City-Michigan GO Sewer Bonds Series 2004B C CO-MGR 302. 09/14/04 425,000,000 CA San Diego Co Water Auth Water Rev Certs of Part Series 2004 A C FA 303. 09/08/04 16,175,000 CO Widefield Water&Sanitation Dt Water and Sewer Rev Ref Bonds Series 2004 N SOLE 304. 08/31/04 9,910,000 TX Harris Co Water Carl Imp Dt#96 Unlimited Tax Bonds Series 2004 A C LEAD 305. 08/30/04 1,560,000 TX Harris Cc MUD#71 Unlimited Tax Bonds Series 2004A C CO-MGR 306. 08/27/04 4,545,000 FL West Melbourne City-Florida Water&Sewer Rev Ref&Imp Bonds Series 2004 N SOLE 307. 08/26/04 5,135,000 TX Fort Bend Cc MUD#106 Unlimited Tax Refunding Bonds Series 2004 N LEAD 308. 08/24/04 5,615,000 TX Grand Prairie City-Texas Water&Wastewtr Sys Rev Bonds Series 2004A N LEAD 309. 08/24/04 21,050,000 NV Las Vegas City-Nevada GO Sewer Refunding Bonds Series 2004 C CO-MGR 310. 08/19/04 2,345,000 WI Lancaster-Wisconsin Water System Revenue Bonds Series 2004 N SOLE 311. 08/19/04 2,950,000 TX Denton Co Fresh Wtr Supply Dt#9 Unlimited Tax Bonds Series 2004 C CO-MGR 312. 08/18/04 14,350,000 FL Clearwater City-Florida Stormwater System Revenue Bonds Series 2004 C FA 313. 08/17/04 5,115,000 MI Washtenaw Co-Michigan Lydon&Sylvan Twp Sanit Swr Series 2004 C CO-MGR 314. 08/17/04 8,730,000 CA Fullerton City-California Water Rev Cert of Participation Series 2004 N SOLE 315. 08/17/04 17,000,000 TX Beaumont City-Texas Waterworks&Sewer Sys Rev Bonds Series 2004 C LEAD 316. 08/17/04 40,075,000 FL Winter Park City-Florida Water and Sewer Revenue Bonds Series 2004 N CO-MGR 317. 08/16/04 9,965,000 TX Longview City-Texas Waterwrks&Swr Sys Rev Ref Bonds Series 2004 A N CO-MGR 318. 08/16/04 19,315,000 TX Colony-Texas Water&Sewer Sys Rev Bonds Series 2004 N CO-MGR Page 5 of 19 Solid Waste,Water& Sewer Financing Experience i I li Sale Date Par Aniount State Issuer Issue Description Series Bid Role 319. 08/12/04 3,225,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2004 C FA 320. 08/12/04 9,925,000 TX Kingsbridge MUD Unlimited Tax Bonds Series 2004 C CO-MGR 321. 08/05/04 37,455,000 PA Harrisburg Authority Water Rev Refunding Bonds Series 2004 N SOLE 322. 07/28/04 4,625,000 PA Lackawanna River Basin Sewer Au Guaranteed Sewwr Rev Bonds Series 2004 N SOLE 323. 07/28/04 7,025,000 TX Fort Bend Co MUD#23 Refunding Bonds Series 2004 N LEAD 324. 07/27/04 3,670,000 TX Harris Co MUD 9148 Wtrwrk&Swr Unitd Tax&Rev Bnds Series 2004 N SOLE 325. 07/27/04 3,670,000 TX Hams Co MUD#148 Wtrwks Swr Sys Unitd Tax Rev Bds Series 2004 N SOLE 326. 07/27/04 5,300,000 TX Brazoria Co MUD#21 Unlimited Tax Bonds Series 2004 C FA 327. 07/21/04 8,000,000 CO Genesee Water and Sanitation Dt General Obligation Bonds Series 2004 N SOLE 328. 07/21/04 150,000,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2005 Series A N CO-MGR. 329. 07/20/04 1,240,000 TX Montgomery Co MUD#18 Unlimited Tax Bonds Series 2004 C CO-MGR 330. 07/19/04 1,985,000 TX Sienna Plantation MUD#2 Unlimited Tax Bonds Series 2004 C FA 331. 07/15/04 52,320,000 CA Ontario-California Certificates of Participation Series 2004 N SOLE 332. 07/13/04 4,740,000 TX Chimney Hill MUD Wtrwks&Swr Unitd Tax Ref Bonds Series 2004 N LEAD 333. 07/08/04 3,285,000 TX Brushy Creek MUD Wtrworks&Swr Sys Rev Bonds Series 2004 C LEAD 334. 07/08/04 11,640,000 IA Waterloo City-Iowa Sewer Revenue Refunding Bonds Series 2004A C LEAD 335. 07/07/04 4,490,000 TX Harris Co Fresh Wtr Supply Dt#61 Unlimited Tax Bonds Series 2004 C FA 336. 06/29/04 6,175,000 TX Harris Co MUD#173 GO Refunding Bonds Series 2004 N LEAD 337. 06/24/04 1,600,000 OR Independence City-Oregon Water Revenue Bonds Series 2004 N SOLE 338. 06/24/04 23,170,000 PA Delaware Co Reg Wtr Qlty Cud Au Sewer Revenue Bonds Series 2004 N CO-MGR 339. 06/23/04 38,820,000 TX Texas GO Water Fin Assist Ref Bonds Series 2004 E N CO-MGR. 340. 06/23/04 84,500,000 TX Texas GO Water Fin Assist Bonds Series 2004 C&D N CO-MGR 341. 06/22/04 12,000,000 IN Westfield-Indiana Sewage Works Rev Bonds Serires 2004 C LEAD 342. 06/15/04 2,100,000 OR Seal Rock Water Dt Deferred Interest GO BANS Series 2004 N SOLE 343. 06/08/04 2,060,000 TX Charterwood MUD Unlimited Tax Bonds Series 2004 C FA 344. 06/08/04 3,920,000 TX Harris Co MUD#168 Unlimited Tax Refunding Bonds Series 2004 N LEAD 345. 06/07/04 6,215,000 TX Laredo City-Texas Wtrwrks&Swr Sys Rev Ref Bonds Series 2004 B N CO-MGR 346. 06/07/04 7,480,000 TX Laredo City-Texas Waterworks&Swr Sys Rev Bonds Series 2004 A N CO-MGR 347. 06/02/04 3,615,000 TX Brazoria Co MUD#4 Refunding Bonds Series 2004 N LEAD 348. 06/01/04 2,965,000 TX Southlake City-Texas Wtr&Swr Sys Rev Cert of Oblig Series 2004 A N LEAD 349. 06/01/04 3,025,000 TX Southlake City-Texas Wtr&Swr Sys Rev Cert of Oblig Series 2004 N LEAD 350. 05/27/04 84,700,000 TX San Antonio City-Texas Water System Rev Ref Bonds Series 2004 N CO-MGR 351, 05/26/04 8,885,000 TX Remington MUD#1 Unitd Tax Bonds Series 2004 C LEAD 352. 05/25/04 5,890,000 TX Harris Co MUD#370 Unlimited Tax Bonds Series 2004 C CO-MGR 353. 05/25/04 5,920,000 TX Midlothian City-Texas Waterworks&Swr Sys Rev Bonds Series 2004 C CO-MGR 354. 05/24/04 1,300,000 TX Mineola City-Texas Certificates of Obligation Series 2004 C CO-MGR 355. 05/24/04 5,700,000 TX Decatur-Texas Wtrwks Swr Sys Rev Certs of Oblig Series 2004 N SOLE 356, 05/18/04 3,080,000 TX Fort Bend Co MUD#46 Unitd Tax Bonds Series 2004 C FA 357. 05/18/04 8,500,000 PA Lower Lackawanna Sanitary Auth Sewer Revenue Bonds Series of 2004 N SOLE 358, 05/13/04 8,120,000 TX Brazoria Co MUD#6 Unlimited Tax Bonds Series 2004 C LEAD 359. 05/12/04 5,980,000 TX Harris Co MUD#168 Unlimited Tax Bonds Series 2004 C CO-MGR 360. 05/11/04 8,700,000 TX Harris Co MUD#53 Water and Sewer Revenue Bonds Series 2004 C SOLE 361. 05/06/04 4,500,000 TX Harris Co MUD#165 Ultd Tax Bonds Series 2004 C FA 362. 05/05/04 2,370,000 TX Northwest Harris Co MUD#20 Unitd Tax Bonds Series 2004 C LEAD 363. 05/04/04 25,770,000 AZ Pima Co-Arizona Sewer Revenue Refunding Bonds Series 2004 N SOLE 364. 04/29/04 71,530,000 TX Texas GO Wtr Fin Assistance Ref Bonds Series 2004B N CO-MGR 365. 04/28/04 1,730,000 TX Fort Bend Co MUD#94 Refunding Bonds Seires 2004A N SOLE 366. 04/26/04 3,705,000 TX Brazos River Authority Revenue Refunding Bonds Series 2004 N SOLE 367. 04/22/04 9,950,000 OR Sunrise Water Authority Water Revenue Bonds Sereis 2004 N SOLE 368. 04/20/04 33,540,000 TX Garland City-Texas Water and Sewer Revenue Bonds Series 2004-B N CO-MGR 369. 04/19/04 10,000,000 TX Murphy City-Texas Water and Sewer Certs of Oblig Series 2004 N CO-MGR 370. 04/15/04 3,690,000 TX Harris Co MUD#261 Unitd Tax Refunding Bonds Series 2004 N SOLE 371. 04/13/04 3,550,000 TX Barker-Cypress MUD Unlimted Tax Bonds Series 2004 C LEAD 372. 04/07/04 2,655,000 TX Northwest Harris Co MUD#15 Refunding Bonds Series 2004 N SOLE 373. 04/07/04 9,500,000 FL Tamarac City-Florida Capital Improvment Rev Bonds Series 2004 N SOLE 374. 04/05/04 3,360,000 TX Mesquite-Texas Drainage Revenue Refunding Bonds Series 2004 N FA 375. 04/05/04 12,990,000 TX Mesquite-Texas Water and Sewer Rev Ref Bonds Series 2004 N FA 376. 04/01/04 6,285,000 TX Cypress Hill MUD#1 Unitd Tax Refunding Bonds Series 2004 N LEAD 377. 03/29/04 12,000,000 PA Dover Twp Sewer Authority Guaranteed Sewer Revenue Bonds Series of 2004 N CO-MGR 378. 03/24/04 20,975,000 KY Kentucky Rural Water Fin Corp Public Proj Refunding Rev Bonds Seresi 2004B C CO-MGR 379, 03/23/04 4,705,000 CO Little Thompson Water Dt Water Revenue Ref Bonds Series 2004 C CO-MGR 380. 03/17/04 30,500,000 TN Knoxville City-Tennessee Wastewater Rev Ref Imp Bonds Series 2004A C CO-MGR. 381. 03/16/04 8,830,000 TX Brazoria Co MUD#26 Unitd Tax Bonds Series 2004 C LEAD 382, 03/11/04 601,545,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2004 Series C N CO-MGR Page 6 of 19 t Solid Waste,Wa(er&SeNver Financing Experience I 1 I 1 ,Sale Date ParAmount State Issuer Issue Description Series Bid Role 383. 03/10/04 293,080,000 AZ Arizona Wtr Infrastruc Fin Auth Water Quality Revenue Bonds Series 2004A N LEAD 384. 03/09/04 3,235,000 TX Hams Co MUD#151 Refunding Bonds Series 2004 N CO-MGR 385. 03/08/04 4,795,000 TX Cinco MUD#2 Refunding Bonds Series 2004 N SOLE 386. 03/04/04 2,710,000 OR Ice Fountain Water Dt GO Refunding Bonds Series 2004 N SOLE 387. 03/04/04 28,050,000 TX Irving-Texas Water and Sewer Revenue Bonds Series 2004 N LEAD 388. 03/02/04 7,110,000 TX Grand Prairie-Texas Revenue Ref and Imp Bonds Series 2004 N LEAD 389. 03/02/04 17,210,000 CO Greeley-Colorado Water Revenue Bonds Series 2004 C CO-MGR 390. 02/27/04 41,045,000 FL Hernando Co-Florida Water&Sewer Rev Bonds Series 2004 N FA 391. 02/26/04 347,615,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2004 Series B N CO-MGR. 392. 02/19/04 6,510,000 TX Fort Bend Co MUD#112 GO Refunding Bonds Seires 2004 N LEAD 393. 02/18/04 3,475,000 TX Harris Co Water Cntl Imp Dt#1 10 Wtr&Swr Comb Tax&Rev Bonds Series 2004 N LEAD 394. 02/18/04 6,080,000 NV Virgin Valley Water Dt Water Rev Ref Bonds Series 2004 C LEAD 395. 02/17/04 4,170,000 PA Mount Joy Borough Auth Guar Sewer Revenue Bonds Series of 2004 N SOLE 396. 02/17/04 18,230,000 MI Dearborn City-Michigan Revenue Refunding Bonds Series 2004 C CO-MGR 397. 02/11/04 4,395,000 NM Rio Rancho-New Mexico Water&Wastewater Sys Rev Bonds Series 2004 N FA 398. 02/10/04 2,925,000 PA Earl Twp Sewer Authority Guar Sewer Revenue Bonds Series of 2004 N SOLE 399. 02/10/04 5,980,000 NM Gallup-New Mexico Joint Utility Ref&Imp Rev Bonds Series 2004 N SOLE 400. 02/06/04 107,870,000 FL Tampa Bay Water Utility System Ref Rev Bonds Series 2004 N CO-MGR 401. 02/05/04 2,025,000 TX Hams Co MUD#285 Unitd Tax Refunding Bonds Series 2004 N LEAD 402. 02/04/04 12,050,000 TX Fort Bend Co Wtr Curl Imp Dt#2 Unlimited Tax Bonds Series 2004 C FA 403. 02/03/04 3,385,000 TX Cypress Forest Public Utility Dt Wtrwks&Swr Sys Rev Bonds Series 2004 C LEAD 404. 02/03/04 3,450,000 TX Fort Bend Co MUD#1 Unlimited Tax Bonds Series 2004 C FA 405. 01/30/04 3,525,000 NE Douglas Co Sanit and Imp Dt#444 General Obligation Bonds Series 2004 N LEAD 406. 01/28/04 27,601,000 FL St Johns Co-Florida Water&Sewer Revenue Boonds Series 2004 N LEAD 407. 01/26/04 3,775,000 WI Menasha City-Wisconsin Wtrwks&Swr Sys Revenue Bonds C CO-MGR 408. 01/26/04 4,455,000 TX Mission Bend MUD#2 Unlimited Tax Bonds Series 2004 C CO-MGR 409. 01/22/04 3,120,000 TX Harris Co MUD#165 Unlimited Tax Bonds Series 2004 C SOLE 410. 01/21/04 3,880,000 TX Hams Co MUD#152 Unlimited Tax Bonds Series 2004 C CO-MGR 411. 01/20/04 3,785,000 PA Warwick Twp Municipal Auth Revenue Bonds SERIES 2004 N SOLE 412. 01/19/04 1,000,000 NE Riverchase Sanitary&Improv Dt#209 General Obligation Bonds Series 2004 N LEAD 413. 01/15/04 1,345,000 OR Sunrise Water Authority GO Refunding Bonds Series 2004 N SOLE 414. 01/15/04 1,755,000 TX Northwest Harris Co MUD#5 Unlimited Tax Refunding Bonds Series 2004 N SOLE 415. 01/14/04 40,345,000 AZ Mesa City-Arizona Utiltiy System Rev Ref Bonds Series 2004 N LEAD 416. 01/14/04 100,000,000 HI Honolulu Water Supply Board Water System Revenue Bonds Serie 2004A N CO-MGR 417. 01/13/04 8,375,000 TX Interstate MUD Unitd Tax Refunding Bonds Series 2004 N LEAD 418. 01/08/04 13,845,000 CA San Dieguito Water Dt Water Revenue Refunding Bonds Series 2004 N SOLE 419. 01/07/04 27,410,000 CA San Buenaventura-California Water Rev Certs of Participation N SOLE 420. 01/06/04 12,000,000 TX Brazoria County MUD#19 Unlimited Tax Bonds Series 2004 C LEAD 421. 12/17/03 5,145,000 OR Sunrise Water Authority Water Revenue Ref Bonds Series 2003 N SOLE 422. 12/16/03 2,915,000 TX Trail of the Lakes MUD Unlimited Tax Bonds Series 2004 C LEAD 423. 12/16/03 6,190,000 WI Superior-Wisconsin Sewerage Sys Revenue Bonds Series 2003 C CO-MGR 424. 12/08/03 2,910,000 TX Montgomery Co MUD#39 Wtrwks&Swr Sys Unitd Tax Bonds Series 2003 C FA 425. 12/04/03 27,390,000 PA Lancaster Area Sewer Authority Sewer Revenue Bonds Series 2004 N LEAD 426. 12/02/03 4,000,000 NE Douglas Co Sanit and Imp Dt#405 General Obligation Bonds Series 2004 N LEAD 427. 12/02/03 27,500,000 TX Brushy Creek MUD Unlimited Tax Bonds Series 2003 C LEAD 428. 12/01/03 2,250,000 NE Sarpy Co Sanit&Improv Dt#206 General Obligation Bonds Seires 2004 N LEAD 429. 12/01/03 4,375,000 TX Harris Co Water CmI Imp Dt#110 Unlimited Tax&Rev Bonds Series 2003 C FA 430. 11/25/03 5,140,000 TX Galveston Co MUD#6 Unlimited Tax Bonds Series 2003 C FA 431. 11/25/03 13,795,000 FL Ocoee-Florida Water and Sewer Revenue Bonds Series 2003 N LEAD 432. 11/24/03 1,540,000 TX Grand Lakes MUD#4 Unlimited Tax Bonds Series 2003 C CO-MGR 433. 11/20/03 7,526,000 TX Clear Lake Water Authority Unitd Tax&Rev Ref Bonds Series 2003 A N LEAD 434. 11/20/03 9,588,000 TX Clear Lake Water Authority Water and Sewer Tax&Rev Bonds Series 2003 A N LEAD 435. 11/20/03 38,915,000 AL Alabama Drinking Water Fin Auth Revolving Fund Loan Bonds Series 2003 A C CO-MGR 436. 11/19/03 15,460,000 KY Madisonville-Kentucky Water and Sewer Revenue Bonds Series 2003A C CO-MGR 437. 11/19/03 21,865,000 FL Florida Gov Utility Auth Utility Revenue Bonds Series 2003 N CO-MGR 438. 11/18/03 24,020,000 KY Northern Kentucky Water Dt Refunding Revenue Bonds Series 2003C C CO-MGR 439. 11/14/03 114,705,000 FL Hollywood City-Florida Wtr&Swr Ref&Imp Bonds Series 2003 N LEAD 440. 11/13/03 9,364,000 FL St Augustine City-Florida Water and Sewer Revenue Bonds Series 2003 N SOLE 441. 11/13/03 63,500,000 NV Nevada General Obligation Bonds Series 2003 H C CO-MGR 442. 11/10/03 2,000,000 NE Sarpy Co Sanit&Improv Dt#223 General Obligation Bonds Series 2003 N LEAD 443. 11/04/03 5,210,000 TX Harris Co MUD#284 Unlimited Tax Bonds Series 2003 C LEAD 444. 11/04/03 9,500,000 TX McKinney-Texas Water and Sewer Revenue Bonds Series 2003 C LEAD 445. 10/31/03 16,065,000 ME Maine Municipal Bond Bank Water&Sewer Revenue Bonds Series 2003 C N CO-MGR 446. 10/28/03 1,820,000 TX Harris Co MUD#344 Unlimited Tax Bonds Series 2003 C LEAD Page 7 of 19 Solid Waste,Water& Sewer Financing Experience I06/30/2006 447. 10/27/03 1,160,000 TX Harris Co MUD#102 Swr Sys Unitd Tax Rev Bonds Series 2003 A C FA 448. 10/27/03 3,400,000 TX Mansfield City-Texas Wtrwks&Swr Sys Rev Bonds Series 2003 N LEAD 449. 10/27/03 5,100,000 TX Mansfield City-Texas Sewer Revenue Bonds SERIES 2003 N LEAD 450. 10/22/03 5,450,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2003 A C FA 451. 10/22/03 26,995,000 FL Jupiter-Florida Water Util Sys Imp Rev Bonds Series 2003 N LEAD 452. 10/20/03 2,990,000 TX Northampton MUD Wtrwks&Swr Sys Unitd Tax Bonds Series 2003 C FA 453. 10/20/03 4,080,000 TX Hunters Glen MUD Water and Sewer Revenue Bonds Series 2003 C SOLE 454. 10/20/03 25,210,000 WI Beloit-Wisconsin Water System Revenue Bonds Series 2003 C CO-MGR 455. 10/15/03 8,260,000 AZ Bullhead City Muni Prop Corp Tax Revenue Bonds Series 2003 N SOLE 456. 10/14/03 1,930,000 TX Mayde Creek MUD Waterworks&Sewer Rev Bonds Series 2003 C CO-MGR 457. 10/14/03 5,480,000 TX Harris Co MUD#109 Waterworks and Sewer Sys Bonds Series 2003 C FA 458. 10/08/03 845,000 TX West Harris Co MUD#1 Unlimited Tax&Revenue Bonds Series 2003 A C SOLE 459. 10/06/03 2,250,000 TX Harris Co MUD#230 Unlimited Tax Bonds Series 2003 C LEAD 460. 10/06/03 11,300,000 TX Northwest Park MUD Unlimited Tax Bonds Series 2003 A C CO-MGR 461. 10/05/03 311,580,000 MA Massachusetts Wtr Pollut Abate Tr Pool Program Bonds Series 9 N CO-MGR 462. 10/03/03 248,890,000 FL Miami-Dade Co-Florida Wtr&Swr Sys Rev Ref Bonds Series 2003 N CO-MGR 463. 10/01/03 8,410,000 FL Clearwater City-Florida Wtr&Swr Revenue Ref Bonds Series 2003 C SOLE 464. 09/24/03 5,600,000 TX Harris Co Water Cntl Imp Dt#119 Unlimited Tax Bonds Series 2003 C CO-MGR 465. 09/24/03 8,630,000 TX Harris Co MUD#364 Unlimited Tax Bonds Series 2003 C CO-MGR 466. 09/24/03 12,000,000 TX Acton MUD Utility Sys Rev Ref Bonds Series 2003 C FA 467. 09/22/03 2,050,000 TX Fort Bend Co MUD#2 Unitd Tax&Revenue Bonds Series 2003 C LEAD 468. 09/22/03 2,625,000 TX Sienna Plantation MUD#2 Unlimited Tax Bonds Series 2003 C FA 469. 09/19/03 5,070,000 TX Harris Co MUD#158 Refunding Bonds Series 2003 N SOLE 470. 09/18/03 4,075,000 PA Chester Water Authority Refunding Water Revenue Bonds Series 2003 A C CO-MGR 471. 09/18/03 19,215,000 PA Lancaster Area Sewer Authority Sewer Revenue Bonds Series 2003 N LEAD 472. 09/18/03 124,685,000 TX North Harris Co Regional Water An Senior Lien Revenue Bonds Series 2003 N FA 473. 09/17/03 2,200,000 TX Jacksonville-Texas Water and Sewer Certs of Oblig Series 2003 N LEAD 474. 09/17/03 5,000,000 TX South Shore Harbour MUD#7 Swr Sys Unitd Tax Revenue Bonds Series 2003 C FA 475. 09/17/03 5,700,000 PA East Lampeter Sewer Authority Sewer Revenue Bonds Series 2003 C CO-MGR 476. 09/17/03 25,000,000 AZ Flagstaff Municipal Facs Corp Revenue Bonds Series 2003 N SOLE 477. 09/12/03 5,225,000 IN Plainfield-Indiana Waterworks Revenue Bonds Series 2003 C LEAD 478. 09/12/03 19,160,000 FL Nassau Co-Florida Water&Sewer Sys Revenue Bonds Series 2003 N LEAD 479. 09/11/03 3,915,000 TX Brazoria Co MUD#3 Tax&Revenue Refunding Bonds Series 2003 N LEAD 480. 09/11/03 40,450,000 FL Martin Co-Florida Utility System Revenue Bonds Series 2003 N LEAD 481. 09/10/03 217,000,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2004 Ser A N CO-MGR 482. 09/08/03 63,880,000 CO Aurora City-Colorado GO Water Refunding Bonds Series 2003 C LEAD 483. 09/03/03 4,600,000 TX Brazoria Co MUD#21 Unlimited Tax Bonds Series 2003 C LEAD 484. 09/02/03 1,500,000 TX Lufkin-Texas Wtrwks&Swr Sys Rev Bonds Series 2003 C CO-MGR 485. 09/02/03 1,700,000 TX Lufkin-Texas Tax&Swr Sys Rev Certs of Oblig Series 2003 C CO-MGR 486. 08/27/03 2,490,000 TX West Harris Co MUD#11 Unlimited Tax Bonds Series 2003 C FA 487. 08/27/03 4,275,000 TX Fort Bend Co MUD#119 Unlimited Tax Bonds Series 2003 C FA 488. 08/27/03 5,035,000 IA Independence-Iowa Swr Rev Imp&Ref Bonds Series 2003 C LEAD 489. 08/26/03 2,360,000 TX Heatherloch MUD Combonation Unitd Tax&Rev Bonds Series 2003 C LEAD 490. 08/26/03 2,405,000 TX Harker Heights-Texas Comb Tax&Utility Sys Rev Bonds Series 2003 A N CO-MGR 491. 08/26/03 9,500,000 TX Harker Heights-Texas Comb Tax&Utility Sys Rev Certs Series 2003 N CO-MGR 492. 08/25/03 4,870,000 TX Lewisville-Texas Water and Sewer Revenue Bonds Series 2003A N SOLE 493. 08/20/03 1,155,000 CO Chaparral Metro Dt GO Refunding Bonds Series 2003 C SOLE 494. 08/20/03 3,000,000 TX Fountainhead MUD Unlimited Tax Bonds Series 2003 C SOLE 495. 08/20/03 5,550,000 TX Harris Co MUD#238 Unlimited Tax Bonds Series 2003 C FA 496. 08/19/03 51,380,000 WA Tacoma-Washington Wtr Sys Revenue&Refunding Bonds Series 2003 C CO-MGR 497. 08/14/03 640,000 OH Greene Co-Ohio Wtr&Swr Assessment Bonds Series 2003 C SOLE 498. 08/13/03 7,500,000 KY Lawrenceburg-Kentucky Water and Sewer Rev Ref Bonds Series 2003F C CO-MGR 499. 08/12/03 2,735,000 TX Cy-Champ Public Utility Dt Unlimited Tax Bonds Series 2003 B C CO-MGR 500. 08/12/03 7,235,000 TX Greenville-Texas Waterworks&Sewer Sys Rev Bonds Series 2003 N LEAD 501. 08/11/03 23,550,000 IL Lake Co-Illinois Water&Sewer Sys Rev Bonds Series 2003 C C CO-MGR 502. 08/07/03 3,175,000 TX Brazoria Co MUD#2 Water and Sewer Revenue Bonds Series 2003 N LEAD 503. 08/06/03 19,440,000 TX Montgomery Co MUD#46 Wtrworks&Sewer Unitd Tax Bonds Series 2003 C FA 504. 08/05/03 19,055,000 WI Madison-Wisconsin Waterworks Sys Mtg Rev Bonds Series 2003 A C SOLE 505. 08/04/03 13,680,000 TX Garland-Texas Water and Sewer Revenue Bonds Series 2003 N CO-MGR 506. 07/30/03 19,310,000 FL Stuart-Florida Pub Utilities Rev Ref&Imp Bonds Series 2003 N LEAD 507. 07/29/03 3,200,000 TX Paseo De La Resaca MUD#3 Unitd Tax Contract Rev Bonds Series 2003 C FA 508. 07/25/03 6,250,000 PA Peters Twp Sanitary Authority Sewer Revenue Bonds Series 2003 N SOLE 509. 07/25/03 47,875,000 FL Palm Bay City-Florida Utility Sys Refunding Rev Bonds Series 2003 N LEAD 510. 07/21/03 3,050,000 TX Carthage City-Texas Waterwks&Swr Sys Rev Bonds Series 2003 N SOLE Page 8 of 19 . . Solid Waste,Water& Sewer Financing Experience I II Sale Date Par Amount State Issuer Issue Description Series Did Rule 511. 07/16/03 2,720,000 TX Palmer Plantation MUD#2 Water and Sewer Revenue Bonds Series 2003 N LEAD 512. 07/16/03 7,530,000 PA Warwick Twp Municipal Auth Guaranteed Sewer Revenue Bonds Series 2003 N SOLE 513. 07/16/03 55,000,000 NE Lincoln-Nebraska Sanitary Sewer Rev Ref Bonds Series 2003 C LEAD 514. 07/11/03 56,535,000 PA Harrisburg Authority Var Rte Water Rev Ref Bonds Series 2003 A N SOLE 515. 07/09/03 72,950,000 TX West Harris Co Regional Water Auth Water System Revenue Bonds Series 2003 N LEAD 516. 07/08/03 8,490,000 PA Monroeville-Pennsylvania General Obligation Bonds Series 2003 A C CO-MGR 517. 07/03/03 14,350,000 AZ Mesa-Arizona Sub Lien Utl Sys Rev Obligations Series 2003 N LEAD 518. 07/01/03 2,525,000 PA Shenandoah Muni Sewage Auth Guar Sewer Rev Bonds Series 2003 N SOLE 519. 07/01/03 99,370,000 FL Broward Co-Florida Water and Sewer Rev Ref Bonds Series 2003B N CO-MGR. 520. 06/25/03 3,215,000 PA Greenville Boro Muni Water Auth Water Revenue Bond Series 2003 N SOLE 521. 06/25/03 14,075,000 FL Cape Coral-Florida Water and Sewer Revenue Bonds Series 2003 N LEAD 522. 06/25/03 18,600,000 UT Mountain Regional Wtr Spec Svc Dt Special Assessment Bonds Series 2003 N LEAD 523. 06/23/03 8,375,000 TX Cornerstones MUD Unitd Tax Refunding Bonds Series 2003 N LEAD 524. 06/20/03 13,720,000 FL Collier Co Water-Sewer Dt Refunding Revenue Bonds Series 2003A N LEAD 525. 06/20/03 33,630,000 FL Collier Co Water-Sewer Dt Water&Sewer Refunding Bonds Series 2003B N LEAD 526. 06/19/03 3,080,000 NJ Bayonne Municipal Utilities Auth Water System Revenue Bonds Series 2003C N LEAD 527. 06/19/03 30,025,000 NJ Bayonne Municipal Utilities Auth Water System Revenue Bonds Series 2003B N LEAD 528. 06/19/03 33,885,000 WI Milwaukee City-Wisconsin Sewerage System Revenue Bonds Series 2003 S4 C CO-MGR 529. 06/19/03 58,095,000 TX Irving-Texas Wtrwks Swr Lien Rev Ref Bonds Series 2003 N CO-MGR 530. 06/19/03 89,775,000 FL Florida Water Pollution Fin Corp Water Pollution Cntrl Rev Bonds Series 2003 N CO-MGR 531. 06/18/03 7,205,000 TX West Harris Co MUD#11 Unitd Tax Refunding Bonds Series 2003 N LEAD 532. 06/15/03 23,150,000 FL Escambia Co Utilities Authority Utility System Revenue Bonds Series 2003 N LEAD 533. 06/13/03 7,120,000 MT Billings-Montana Storm Swr Gross Rev Ref Bonds Series 2003 C FA 534, 06/12/03 5,085,000 TX Harris Co MUD#132 Comb Unitd Tax&Rev Ref Bonds Series 2003 N CO-MGR 535. 06/12/03 5,310,000 TX Louetta North Public Utility Dt Unitd Tax Refunding Bonds Series 2003 N LEAD 536. 06/12/03 30,270,000 KY Northern Kentucky Water Dt Revenue Bonds Series 2003B C CO-MGR 537. 06/12/03 50,915,000 TX Texas GO Water Fin Assistance Ref Bonds Series 2003 B N CO-MGR 538. 06/12/03 72,200,000 TX Texas GO Water Fin Assistance Ref Bonds Series 2003C&D N CO-MGR 539. 06/11/03 6,665,000 FL Lake City-Florida Utilities Revenue Refunding Bonds Series 2003 N SOLE 540. 06/11/03 14,475,000 TX Tyler-Texas Water&Sewer Sys Rev Bonds Series 2003 N LEAD 541. 06/11/03 42,965,000 FL Fort Pierce Utilities Authority Utilities Refunding Revenue Bonds Series 2003 N LEAD 542. 06/11/03 150,000,000 OR Portland-Oregon Auctin Rte Second Lien Swr Bonds Series 2003B-1&2 N CO-MGR 543, 06/10/03 1,190,000 TX Harris Co MUD#222 Unlimited Tax Bonds Series 2003 C CO-MGR 544. 06/09/03 8,220,000 PA Northwestern Lancaster Co Swr Guar Sewer Rev Bonds Series 2003 N SOLE 545. 06/09/03 8,220,000 PA North Lancaster Co Authority Guaranteed Sewer Revenue Bonds Series 2003 N SOLE 546. 06/06/03 5,620,000 FL Sanibel-Florida Sewer Utility Revenue Ref Bonds Series 2003 N SOLE 547. 06/06/03 13,265,000 FL Clay Cc Utility Authority Utilities Sys Rev&Ref Bonds Series 2003C N SOLE 548. 06/06/03 14,950,000 FL Clay Co Utility Authority Utilities Sys Rev&Ref Bonds Series 2003B N SOLE 549. 06/05/03 1,595,000 PA Bethel Twp Sewer Authority Guar Sewer Rev Bonds Series 2003 N SOLE 550. 06/04/03 2,360,000 TX Williamson-Travis Cos MUD#1 Unlimited Tax and Revenue Bonds Series 2003 C CO-MGR 551. 06/03/03 4,695,000 TX Carrollton-Texas Waterworks&Swr Sys Rev Bonds Series 2003 C FA 552. 06/03/03 6,990,000 FL Volusia Co-Florida Wtr&Sewer Ref Revenue Bonds Series 2003 C LEAD 553. 06/03/03 20,425,000 CO Colorado Wtr Res and Pwr Dev Auth Drinking Water Rev Bonds 2003 Series A C CO-MGR 554. 06/03/03 269,450,000 CA Los Angeles City-California Wastewater Sys Sub Rev Ref Bonds Series 2003B C CO-MGR. 555. 06/02/03 4,020,000 TX Hutchins-Texas Tax&Wtrwks Swr Rev Cert Oblig Series 2003 N SOLE 556. 05/29/03 10,000,000 PA Highland Sewer&Water Authority Sewer&Water Rev Bonds Series of 2003 N SOLE 557, 05/29/03 28,870,000 TX Corpus Christi-Texas Utility Sys Rev Ref Bonds Series 2003 N LEAD 558. 05/28/03 9,225,000 VA Chesapeake-Virginia Water and Sewer Refunding Bonds Series 2003C C CO-MGR 559. 05/22/03 1,690,000 TX Harris Co MUD#70 Unlimited Tax Bonds Series 2003A C CO-MGR 560. 05/21/03 2,960,000 PA Bonneauville Boro Municipal Auth Guar Wtr&Swr Rev Bonds Series of 2003 N SOLE 561. 05/21/03 3,465,000 TX Harris Co MUD#152 Revenue Refunding Bonds Series 2003 N CO-MGR 562. 05/15/03 3,725,000 TX Spencer Road Public Utility Dt Unitd Tax Ref Bonds Series 2003 N LEAD 563. 05/15/03 7,275,000 TX Travis Cc Water Cntl Imp Dt#17 Unlimited Tax GO Bonds Series 2003 C LEAD 564. 05/13/03 18,800,000 LA Shreveport City-Louisiana Water&Sewer Rev Bonds 2003 Ref Set B N CO-MGR 565. 05/12103 3,675,000 TX Plano-Texas Mun Drainage Util Sys Rev Bonds Series 2003 C LEAD 566. 05/12/03 9,500,000 TX Pearland City-Texas Water&Sewer Sys Rev Bonds Series 2003 C FA 567. 05/07/03 11,000,000 TX Galveston City-Texas Waterworks&Swr Sys Rev Bonds Series 2003 C SOLE 568. 05/07/03 11,730,000 TX Longview-Texas Wtrwks&Swr Sys Rev Ref Bonds Series 2003 N LEAD 569. 05/07/03 44,110,000 FL Northern Palm Beach Cc Imp Dt Water Control&Imp Ref Bonds Series 2003 N CO-MGR 570. 05/06/03 2,280,000 PA Bloomfield Borough-Pennsylvania General Obligation Bonds Series of 2003 N SOLE 571. 05/05/03 3,620,000 TX Laredo-Texas Comb Tax&Swr Sys Rev Certs Series 2003 C CO-MGR 572. 04/29/03 3,835,000 TX Deer Park-Texas Waterworks&Sewer Rev Ref Bonds Series 2003 N SOLE 573. 04/29/03 11,995,000 NC Morganton-North Carolina GO Refunding Bonds Series 2003 C CO-MGR 574. 04/25/03 61,431,000 FL Port St Lucie City-Florida Utility System Revenue Bonds Series 2003 N LEAD Page 9 of 19 . . Solid Waste,Water&Sewer Financing Experience I I I16 575. 04/24/03 16,605,000 TX North Texas Municipal Water Dt Contract Revenue Ref Bonds Series 2003 N CO-MGR Series 2003 N 576. 04/24/03 19,265,000 TX North Texas Municipal Water Dt Wastewater Revenue Ref Bonds Series 2003 C FAD 577. 04/21/03 2,665,000 TX Fort Bend Co MUD#130 Unlimited Tax Bonds 578. 04/16/03 5,075,000 PA Mahanoy City Sewer Auth Guar Sewer Revenue Bonds Series of 2003 N SOLE 579. 04/16/03 18,640,000 CA San Elijo A Powers Auth Revenue Refunding Bonds Series 2003 N SOLE 2,010,000 NE Elkhorn-Nebraska Sewer Revenue Refunding Bonds Series 2003 C SOLE 580. 04/15/03 ,010,000 TX Southlake-Texas GO Refunding&Imp Bonds Series 2003 N LEAD 581. 04/15/03 Tax&Wtrwks Swr Rev 582. 04/15/03 12,755,000 TX Southlake-Texas Certs Series Series of oft N LEAD 2003 N SOLE 583. 04/11/03 5,715,000 PA Greene Twp Municipal Auth Sewer Revenue Bonds Series of 2003 N SOLE 584. 04/11/03 8,190,000 PA Shamokin-Coal Twp Jt Sewer Auth Guar Sewer Rev Bonds 585. 04/10/03 5,124,000 TX Harris Co MUD#102 Wtrwks&Swr Com Tax Rev Bonds Series 2003 N CO-MGR 586. 04/10/03 79,450,000 TX Guadalupe-Blanco River Auth Contract Rev Bonds Series 2003 N CO-MGR l0/03 367,265,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds 2003 Series E N CO-MGR 587. 04/7. 04/10/03 11,265,000 FL Hernando Co-Florida Water&Sewer Ref Rev Bonds Series 2003 N LEAD 58 58 . 04/0 1, 0,000 OR Hubbard-Oregon 9/03 1 Water Rev Refunding Bonds Series 2003 N SOLE Sewer Rev Ref Cap Loan Notes C CO-MGR 590. 04/07/03 3,785,000 IA Grinnell-Iowa 591. 04/01/03 50,180,000 TX Gardner City-Massachusetts Utility Sys Rev Ref&Imp Bonds Series 2003 C LEAD 592. 04/01/03 54,560,000 TX Dallas Co Util&Reclamation Dt Unitd Tax Refunding Bonds Series oft N O 593. 03/27/03 5,680,000 PA West Manchester Twp Sewer Auth Guar Sewer Revenue Bonds Series 594. 03/25/03 88,370,000 OR Portland-Oregon Sewer System Rev&Ref Bonds Series 20033 A N CO-MGR A N SOLE 595. 03/24/03 7,020,000 TX Fort Bend Co MUD#118 Unlimited Tax Bonds Series 2003 C LEAD Series 2003A C LEAD 596, 03/24/03 20,970,000 IA Des Moines-Iowa GO Refunding Bonds 597. 03/19/03 3,260,000 PA St Thomas Twp Municipal Auth Guar Sewer Revenue Bonds Series 2003 N SOLE 598. 03/19/03 7,330,000 TX Cimarron MUD Wtrwks Swr Tax Rev Ref Bonds Series 2003 N LEAD 599. 03/19/03 29,130,000 FL Fort Myers-Florida Utlity System Refunding Rev Bonds Series 2003A C LEAD 600. 03/18/03 2,495,000 TX Montgomery Co MUD#47 Unitd Tax Ref Bonds Series 2003 N LEAD 601. 03/18/03 7,200,000 TX Chimney Hill MUD Wtrwks&Swr Sys Comb Rev Bonds Series 2003 C FA 602. 03/18/03 20,000,000 TX San Angelo-Texas Comb Tax and Rev Certs of Oblig Series 2003 C CO-MGR 603. 03/17/03 3,630,000 TX Ham Unitd Tax Ref Bonds Series 2003 N LEAD s Co MUD#155 Series 2003 N CO-MGR 604. 03/17/03 12,313,000 TX Galveston Co Wtr Ctl/lmprov Dt#I Unitd Tax Refunding Bonds 605. 03/17/03 15,500,000 CO Metro Wastewater Reclamation Dt Sewer Refunding Bonds Series 2003B C FA 606. 03l14J03 32,165,000 ME Maine Municipal Bond Bank Water and Sewer Revenue Bonds Series 2003A&B N CO-MGR Unitd Tax&Rev Bonds Series 2003 C FA 607. 03/12/03 2,550,000 TX West Harris Co MUD#1 utility &Imp Rev Bonds Series 2003 N LEAD 608. 03/12/03 32,985,000 FL Fernandina Beach-Florida tY Ac Q P 1,855,000 TX Cedar Hill-Texas Waterworks&Sewer Rev Bonds Series 2003 N SOLE 609. 03/11/03 ,855,000 TX Cedar Hill-Texas Comb Tax&Wtrwks Swr Rev Cert Series 2003 N SOLE 610. 03/11/03 Unlimited Tax Bonds Series 2003 C FA 611. 03/11/03 11,800,000 TX Remington MUD#1 1l03 12,610,000 TX Grand Prairie-Texas Water&Wstwtr Rev Ref Imp Bonds Series 2003 N LEAD 612. 03/11/03 ,610,000 PA Ephrata Borough Authority Guaranteed Sewer Revenue Bonds Series of 2003 N SOLE 613. 614. 03/04/03 11,815,000 IN New Albany-Indiana Sewage Works Ref Rev Bonds Series 2003 N SOLE 615. 03/04/03 23,985,000 FL Cocoa-Florida Water&Sewer Ref Rev Bonds Series 2003 N SOLE 616. 03/03/03 5,185,000 PA Mount Joy Borough Auth Guaranteed Sewer Revenue Bonds Series of 2003 N SOLE 617. 03/01/03 1,180,000 TX Alpine-Texas Water and Sewer Revenue Bonds Series 2003-A N FA 618. 02/27/03 104,630,000 FL Broward Co-Florida Water and Sewer Rev Ref Bonds Series 2003 N CO-MGR Utility System Revenue Bonds Series 2003 N LEAD 619. 02/26/03 49,770,000 FL Polk Co-Florida ty y Series 2003 N LEAD 620. 02/25/03 4,585,000 TX Woodlands Metro Center MUD Unitd Tax Refunding Bonds Series 2003 N LEAD 621. 02/20/03 7,590,000 TX Montgomery Co MUD#7 Refunding Bonds 125,000 TX Harris Co MUD#278 Unlimited Tax Bonds Series 2003 C FA 623. 02/13/03 03 40,725,000 TX Houston City-Texas 622. 02/13 5. Wtr&Swr Jun Lien Rev Ref Bonds Series 2003A N CO-MGR Water Revenue Bonds Series 2003 N SOLE 624. 02/11/03 840,000 OR Prineville-Oregon Unlimited Tax Bonds Series 2003 C FA 625. 02/11/03 6,860,000 TX Hams Co MUD#285 626. 02/06/03 2,750,000 TX Montgomery Co MUD#47 Wtrwks&Swr Sys Ultd Tax Bonds Series 2003 C FA 627. 02/05/03 1,100,000 TX Spring West MUD Waterworks&Swr Sys Rev Bonds Series 2003 C FA 62 . 02/O /03 3,105,000 TX Harris Co MUD#149 Refunding Bonds Series 2003 N CO-MGR 629. 02/04l03 32,100,000 SC Greenville-South Carolina Waterworks System Rev Bonds Series 2003 N LEA Unitd Tax Refunding Bonds Series 2003 N LEAD 63 . 01/31/03 3, ,000 TX Harris MUD#1 Unitd Tax Refunding Bonds Series 2003 N LEAD 631. O1/31/03 3,68080,000 TX Eldridgee Road MUDD Series 2003 C FA 632. O1/29/03 4,150,000 TX Hams Co Fresh Wtr Supply Dt#61 Unlimited Tax Bonds N LEAD 633. 01/29/03 6,715,000 PA St Marys Area Water Authority Water Revenue Bonds Series of Series 2003 3 C LEAD 634. 01/28/03 3,195,000 NJ Jefferson Twp-New Jersey Water Bonds 080,000 TX Rankin Road West 635. 01/28/03 5, MUD Unlimited Tax Bonds Series 2003 C LEAD 636. 1/28/03 7,620,000 TX Hams Co MUD#368 Unlimited Tax Bonds Series 2003 C FA 637. 01/23/03 9,700,000 CA Burlingame Financing Auth Water&Wastewater Rev Bonds Series 2003 C LEAD Series 2003A C SOLE 638. O1/23/03 17,255,000 KY Northern Kentucky Water Dt Water District Rev BANS Page 10 of 19 Solid Waste,Water& Sciver Financing Experience 1 1 16 Sale Date Par.1kniount State Issuer Issue Description Series Bid Role 639. 01/22/03 3,020,000 TX Northwest Park MUD Refunding Bonds Series 2003 N CO-MGR 640. 01/22/03 7,960,000 MN Owatonna Public Utilities Comm Public Utilities Rev Ref Bonds Series 2003 N SOLE 641. 01/22/03 31,280,000 IN Evansville-Indiana Sewage Works Ref Rev Bonds 2003 Series A N SOLE 642. 01/15/03 307,410,000 TX Dallas City-Texas Water and Sewer Revenue Bonds Series 2003 N CO-MGR 643. 01/14/03 396,270,000 CA San Francisco City&Co Pub Util Clean Water Revenue Ref Bonds Series 2003A: C CO-MGR 644. 01/13/03 6,915,000 MI Newaygo Co-Michigan Sewage Disposal System Bonds C CO-MGR 645. 01/08/03 86,495,000 TX Fort Worth City-Texas Wtr&Swr Sys Rev Ref Imp Bonds Series 2003 N CO-MGR 646. 01/07/03 2,500,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2003 C FA 647. 12/19/02 3,125,000 TX Trinity River Authority Contract Rev Ref Bonds Series 2003 N LEAD 648. 12/18/02 89,145,000 FL Pinellas Co-Florida Sewer Rev Bonds Series 2003 C SOLE 649. 12/17/02 331,430,000 TX Tarrant Regional Water Dt Water Rev Ref&Imp Bonds Series 2002 N LEAD 650. 12/13/02 15,925,000 TX Trinity River Authority Revenue Ref Bonds Series 2003 N LEAD 651. 12/13/02 34,140,000 TX Trinity River Authority Refunding Revenue Bonds Series 2003 N LEAD 652. 12/12/02 1,463,000 NJ Keamy-New Jersey Water Utility Bonds C SOLE 653. 12/12/02 9,710,000 TX Trinity River Authority Wstwtr Trtmnt Sys Imp Ref Bonds Series 2003 N LEAD 654. 12/11/02 5,795,000 FL Northern Palm Beach Co Imp Dt Water Control&Improv Bonds Series 2002 N SOLE 655. 12/11/02 72,700,000 TX Trinity River Authority Improv&Ref Rev Bonds Series 2003 N LEAD 656. 12/10/02 4,100,000 TX Harris Co MUD#151 Unitd Tax Bonds Series 2003 C CO-MGR 657. 12/06/02 3,040,000 NE Douglas Co Sanit Imp Dt#370 GO Refunding Bonds Series 2003 N LEAD 658. 12/05/02 11,160,000 TX College Station-Texas Utility Sys Rev Ref Bonds&Certs Series 2003 N CO-MGR. 659. 12/05/02 15,030,000 PA Allegheny Co Sanitary Authority Sewer Revenue Bonds Series of 2002 N FA 660. 12/05/02 22,575,000 PA Allegheny Co Sanitary Authority Sewer Revenue Bonds Series of 2003 N FA 661. 12/04/02 870,000 TX Trinity River Authority Contract Rev Ref Bonds Series 2003 N LEAD 662. 12/04/02 3,855,000 PA Bald Eagle Twp Authority Guar Sewer Rev Bonds Series of 2003 N SOLE 663. 12/04/02 6,270,000 TX Cypress Hill MUD#1 Unlimited Tax Bonds Series 2002 C FA 664. 12/03/02 5,265,000 TX Greenville-Texas Water and Sewer Revenue Bonds Series 2002-A N SOLE 665. 12/03/02 6,250,000 AK Alaska Municipal Bond Bank Utility Revenue Bonds Series 2002A N SOLE 666. 12/03/02 46,660,000 CA Contra Costa Water Auth Water Treatment Rev Ref Bonds 2002 Series A C CO-MGR 667. 12/03/02 50,000,000 MN Minnesota Public Facilities Auth Drinking Water Rev Bonds Series 2002B C CO-MGR 668. 11/22/02 4,135,000 PA North Middleton Authority Guar Water&Sewer Rev Bonds Series of 2002 N SOLE 669. 11/22/02 24,390,000 RI Kent Co Water Authority General Revenue Bonds 2002 Series A N SOLE 670. 11/21/02 11,765,000 TX Fort Bend Co MUD#117 Unlimited Tax Bonds Series 2002 C FA 671. 11/20/02 3,560,000 PA Clarks Summit-So Abington Swr Au Sewer Rev Bonds Series of 2002 N SOLE 672. 11/19/02 7,255,000 TX Huntsville-Texas Waterworks&Sewer Sys Rev Bonds Series 2002 C LEAD 673. 11/19/02 7,460,000 TX Rolling Creek Utility Dt Unlimited Tax Bonds Series 2002 C FA 674. 11/19/02 11,405,000 TX Clear Lake Water Authority Wtrwks&Swr Comb Rev Ref Bonds Series 2002 N LEAD 675. 11/19/02 61,190,000 FL Jacksonville Beach-Florida Utility Revenue Refunding Bonds Series 2002 C LEAD 676. 11/15/02 1,040,000 FL St Johns Co-Florida Water&Sewer Rev Ref Bonds Series 2002B N SOLE 677. 11/15/02 3,710,000 TX Montgomery Co MUD#40 Unitd Tax Ref Bonds Series 2002 N LEAD 678. 11/15/02 4,090,000 FL St Johns Co-Florida Water&Sewer Rev Ref Bonds Series 2002A N SOLE 679. 11/13/02 3,035,000 TX Fort Bend Co MUD#108 Unlimited Tax Refunding Bonds Series 2002 N LEAD 680. 11/13/02 3,215,000 TX Fort Bend Co MUD 942 Unlimited Tax Refunding Bonds Series 2002 N LEAD 681. 11/12/02 8,300,000 TX Remington MUD#1 Unlimited Tax Bonds Series 2002 C SOLE 682. 11/05/02 46,970,000 FL Orlando City-Florida Waste Water Sys Ref Revenue Bonds 2002 Series A N CO-MGR 683. 10/31/02 9,635,000 TX Brazos River Authority Water Supply Sys Rev Bonds Series 2002 N LEAD 684. 10/30/02 266,885,000 MA Massachusetts Wtr Pollut Abate Tr Pool Program Bonds Series 8 N CO-MGR 685. 10/29/02 2,100,000 TX Interstate MUD Unlimited Tax Bonds Series 2002 C SOLE 686. 10/29/02 4,165,000 TX Northwest Harris Co MUD#16 Water&Swr Sys Comb Tax Bonds Series 2002 C FA 687. 10/24/02 10,740,000 FL Altamonte Springs-Florida Water and Sewer Rev Ref Bonds Series 2002 N SOLE 688. 10/22/02 2,070,000 TX North Mission Glen MUD Unlimited Tax Bonds Series 2002 C FA 689. 10/22/02 6,500,000 TX Georgetown-Texas Utility System Revenue Bonds Series 2002 N SOLE 690. 10/21/02 2,875,000 MN Savage-Minnesota GO Utility Revenue Bonds Series 2002A C CO-MGR 691. 10/18/02 124,800,000 MA Massachusetts Wtr Pollut Abate Tr Water Pollution Bonds Series 2002A N CO-MGR 692. 10/16/02 5,780,000 TX Montgomery Co MUD#67 Refunding Bonds Series 2002 N LEAD 693. 10/15/02 660,000 MN Becker-Minnesota GO Wastewater Treatment Fac Bonds Series 2002-B C SOLE 694. 10/15/02 1,625,000 MN Becker-Minnesota GO Water Rev Bonds Series 2002-A C SOLE 695. 10/15/02 7,005,000 TX McKinney-Texas Wasteworks&Sewer Sys Rev Bonds Series 2002 C LEAD 696. 10/15/02 8,435,000 TX Galveston Co MUD#3 Refunding Bonds Series 2002 N CO-MGR 697. 10/10/02 13,145,000 FL Cocoa Beach-Florida Utilities Sys Imp Rev Ref Bonds Series 2002 N LEAD 698. 10/09/02 2,655,000 TX Montgomery Co MUD#46 Unitd Tax Refunding Bonds Series 2002 N LEAD 699. 10/09/02 6,140,000 FL Cape Coral-Florida Water Improv Assessment Bonds Series 2002 N SOLE 700. 10/08/02 3,550,000 TX Harris Co MUD#222 Unitd Tax Refunding Bonds Series 2002 N CO-MGR 701. 10/04/02 2,590,000 NE Douglas Co Sanit and Imp Dt#206 GO Refunding Bonds Series 2002 N LEAD 702. 10/03/02 250,000,000 NY NYC Municipal Water Finance Auth Water&Sewer Sys Rev Bonds 2003 Series D N CO-MGR Page 11 of 19 Solid Waste,Water& Sewer Financing Experience I II 703. 09/30/02 6,305,000 TX West Harris Co MUD#11 Unlimited Tax Bonds Series 2002 C LEAD 704. 09/26/02 2,480,000 TX Chambers Co MUD#1 Unlimited Tax Bonds Series 2002 C FA 705, 09/26/02 8,300,000 MI Oceola Twp-Michigan Special Assessment Bonds Series 2002 C CO-MGR 706. 09/26/02 19,270,000 PA Lancaster Area Sewer Authority Sewer Revenue Bonds Series of 2002 N LEAD 707. 09/25/02 6,020,000 TX Cinco MUD#10 Unlimited Tax Bonds Series 2002 C FA 708, 09/25/02 14,350,000 TX Tyler-Texas Water&Sewer Sys Rev Bonds Series 2002 N LEAD 709. 09/25/02 25,390,000 CA South Co Regional Wastewater Auth Refunding Rev Bonds Series 2002 N FA 710. 09/24/02 5,855,000 NC Guilford Co-North Carolina GO Water and Sewer Bonds Series 2002-A C CO-MGR 711. 09/23/02 1,040,000 MN St Cloud-Minnesota GO Water&Sewer Rev Ref Bonds Series 2002-C C SOLE 712. 09/19/02 3,600,000 TX Burney Road MUD Unlimited Tax Bonds Series 2002 C FA 713. 09l18l02 2,920,000 TX Brazoria Co MUD#3 Water&Sewer Comb Tax Rev Bonds Series 2002 C FA GO Water Refunding Bonds Series 2002 C O 714. 09/17/02 11,610,000 CO Denver City Co Board of Water Comm SOLE 715. 09/11/02 3,210,000 CO Genesee Water and Sanitation Dt Refunding Bonds Series 2002 N S 716. 09/09/02 4,880,000 TX Fort Bend Co MUD#1 Unlimited Tax Bonds Series 2002 C FA 717. 09/04/02 3,550,000 TX Montgomery Co MUD#60 Wtrwks&Swr Sys Unitd Tax Bonds Series 2002 C FA 718. 09/04/02 5,375,000 TX Hams Co Fresh Wtr Supply Dt#51 Unlimited Tax Bonds Series 2002 C CO-MGR 719. 08/28/02 9,570,000 TX Fort Bend Co MUD#25 Unlimited Tax Bonds Series 2002 C FA 720. 08/27/02 3,470,000 TX Trail of the Lakes MUD Refunding Bonds Series 2002 N CO-MGR 721. 08/27/02 8,600,000 IL New Lenox-Illinois General Obligation Bonds Series 2002A C CO-MGR 722. 08/22/02 3,150,000 TX Harris Co MUD#304 Unlimited Tax Bonds Series 2002 C FA 723. 08/22/02 3,650,000 TX Willow Fork Drainage Dt Unlimited Tax Bonds Series 2002 C FA 724. 08/22/02 8,440,000 FL Melbourne-Florida Taxable Wtr&Swr Ref Rev Bonds Series 2002C N LEAD 725. 08/22/02 43,000,000 CO Broomfield-Colorado Wtr Activity Enter Wtr Rev Bonds Series 2002 C FA 726. 08/21/02 1,780,000 TX Palmer Plantation MUD#2 Water&Swr Comb Tax&Rev Bonds Series 2002 C FA 727. 08/21/02 3,075,000 TX Harris Co MUD#24 Wtrwks&Swr Sys Rev Ref Bonds Series 2002 N CO-MGR 728. 08/21/02 6,420,000 PA Waynesboro Borough Authority Guar Wtr&Swr Revenue Bonds Series 2002 N SOLE 729. 08/20/02 7,415,000 TX Brazoria Co MUD#17 Unlimited Tax Bonds Series 2002 C FA 730. 08/20/02 72,755,000 FL Lakeland-Florida Water&Wstwtr Rev Ref Imp Bonds Series 2002 N FA 731. 09/19/02 6,340,000 TX Montgomery Co MUD#46 Water and Sewer Revenue Bonds Series 2002 C FA 732. 08/19/02 6,700,000 TX Rockwall-Texas Waterworks&Sewer Sys Rev Bonds Series 2002 C LEAD 733. 08/15/02 8,550,000 TX Brazoria County MUD#19 Unlimited Tax Bonds Series 2002 C FA 734. 08/14/02 5,210,000 TX Cinco MUD#1 Contract Revenue Bonds Series 2002 C LEAD 735. 08/07/02 2,095,000 TX Laredo-Texas Sewer System Rev Ref Bonds Series 2002 N CO-MGR 2,62Q000 TX Laredo-Texas Sewer System Rev Ref Bonds Series 2002 N CO-MGR 736. 08l07/02 ,620,000 TX Reid Road MUD#I Waterwrks&Sewer Sys Rev Bonds C CO-MGR 736. 08/07/02 nlWtr&Swr Comb Tax&Rev Bonds Series 2002 Cimited Tax Bonds Series 2002 C LEAD 738. 08/06/02 2,650,000 TX Luce Bayou Utility Dt U 739. 08/06l02 3,040,000 TX Renn Road MUD Unlimited FA 740. 08/05/02 4,560,000 TX Woodlands Metro Center MUD General &Swr Sys Unlimited Tax Bonds Series 2002 C CO-MGR 741. 08/05/02 26,000,000 IL Lake Forest-Illinois General Obligation Bonds Series 2002-A C Series 2002 B N LEAD 742. 08/02/02 21,495,000 FL Melbourne-Florida Water&Sewer Ref Rev Bonds 743. 07/31/02 6,150,000 TX Harris Cc MUD#364 Unlimited Tax Bonds Series 2002 C CO-MGR 744. 07/31/02 16,270,000 TX Clear Brook City MUD Unlimited Tax Bonds Series 2002 C CO-MGR 745. 07/31/02 57,700,000 TX Bexar Metropolitan Water Dt Water Works Sys Rev&Ref Bonds Series 2002 N CO-MGR 746, 07/24/02 16,160,000 TX Texas Agricultural Water Conserve Bonds Series 2002 N LEAD 747. 07/24/02 62,015,000 TX Texas Water Financial Assistance Bonds Series 2002 C-E N LEAD 748. 07/22/02 15,125,000 FL Coral Springs-Florida Water&Sewer Rev Refunding Bonds Series 2002 C LEAD 749. 07/17/02 4,180,000 TX Harris Co MUD#371 Unlimited Tax Bonds Series 2002 C LEAD 750. 07/17/02 6,790,000 TX Harris Co MUD#196 Unitd Tax Bonds Series 2002 C FA 751. 07/16/02 6,835,000 CA Lee Lake Water Dt Special Tax Bonds Series 2002 N SOLE 752. 07/16/02 28,205,000 FL Melbourne-Florida Water&Sewer Ref&Imp Bonds Series 2002A N LEAD 753, 07/16/02 164,000,000 CA San Francisco City&Co Pub Util, Water Revenue Bonds Series 2002-A C CO-MGR 754. 07/15/02 7,385,000 TX Harris Co MUD#354 Unlimited Tax Bonds Series 2002 C CO-MGR 755. 07/12/02 3,035,000 TX Woodlands MUD#2 Unlimited Tax Refunding Bonds Series 2002 N SOLE 756. 07/10/02 2,510,000 PA Lackawanna River Basin Sewer Au Guaranteed Sewer Rev Bonds Series 2002 N CO-MGR 757. 07/10/02 37,750,000 FL Daytona Beach-Florida Utility System Ref Rev Bonds Series 2002D N LEAD 758, 07/09/02 3,050,000 TX Sienna Plantation MUD#2 Unitd Tax Bonds Series 2002 C FA 759. 07/09/02 3,640,000 TX Coppell-Texas Water&Sewer Sys Rev Ref Bonds Series 2002 N SOLE 760. 07/09/02 5,420,000 TX Hams Co MUD#368 Unlimited Tax Bonds Series 2002 C FA 761. 07/08/02 2,055,000 TX Harris Co MUD#149 Unlimited Tax Bonds Series 2002 C CO-MGR 762. 07/03/02 14,030,000 FL Holly Hill-Florida Water&Sewer Ref Rev Bonds Series 2002 N CO-MGR 763. 07/02/02 1,350,000 PA Union Twp Municipal Auth Sewer Revenue Bonds Series of 2002 N SOLE 764. 07/01/02 15,340,000 PA Harrisburg Authority Water Refunding Revenue Bonds Series 2002A N SOLE 765. 06/26/02 3,440,000 TX Stanley Lake MUD Unlimited Tax Bonds Series 2002 C FA 766. 06/25/02 887,000 OR Metolius-Oregon RANs Series 2002 N SOLE Page 12 of 19 Solid Waste,Water& SeNver Financing Experience 4 , I1, Sale Date Par Amount State Issuer Issue Description Series Bid Role 767. 06/25/02 13,095,000 TX Brazoria Co MUD#18 Unlimited Tax Bonds Series 2002 N FA 768. 06/20/02 9,935,000 PA Sub Lancaster Sewer Authority Sewer Revenue Bonds Series 2002 N SOLE 769. 06/20/02 741,090,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fis Ser 2003A N CO-MGR 770. 06/17/02 3,700,000 PA Millcreek Twp Sewer Aut Guar Sewer Rev Ref Bonds Series 2002 N CO-MGR 771. 06/11/02 14,470,000 FL Boca Raton-Florida Water&Sewer Rev Ref Bonds Series 2002 C LEAD 772. 06/11/02 28,000,000 NC High Point City-North Carolina GO Water and Sewer Bonds Series 2002 C CO-MGR 773. 06/06/02 7,910,000 TX Gulf Coast Water Authority Water System Revenue Ref Bonds Series 2002 N LEAD 774. 06/03/02 26,525,000 PA Bucks Cc Water&Sewer Authority Water System Rev Bonds Series AB&C of 2002 N CO-MGR 775. 05/23/02 7,500,000 TX Sienna Plantation Levee Imp Dt Unitd Tax Levee Improv Bonds Series 2002 C LEAD 776. 05/22/02 3,050,000 TX Morton Road MUD Wtrwks&Sewer Sys Comb Ultd Tax Series 2002 C FA 777. 05/21/02 300,000,000 CA San Diego Co Water Auth_ Water Rev Certs of Participation Series 2002-A C FA 778. 05/20/02 3,000,000 TX Harris Co MUD#155 Unlimited Tax Bonds Series 2002 C FA 779. 05/14/02 3,800,000 TX Greenville-Texas Waterworks&Swr Sys Rev Bonds Series 2002 N LEAD 780. 05/13/02 500,000 IA Orleans-Iowa GO Corporate Purpose Notes C SOLE 781. 05/13/02 3,575,000 TX Brazoria Co MUD#4 Unlimited Tax Bonds Series 2002 C FA 782. 05/13/02 3,995,000 TX Harris Co Water Cntl Imp Dt#119 Unlimited Tax Bonds Series 2002 C LEAD 783. 05/09/02 2,005,000 PA West Donegal Twp Authority Guar Sewer Rev Bonds Series of 2002 N SOLE 784. 05/08/02 11,720,000 WA Walla Walla City-Washington Water&Wastewater Rev Ref Bonds Series 2002 C CO-MGR 785. 05/07/02 1,100,000 TX Gainesville-Texas Wtrwrks Swr Sys Cert of Oblig Series 2002 C CO-MGR 786. 05/02/02 22,455,000 FL Daytona Beach-Florida Utility System Ref Rev Bonds Series 2002 A-C N LEAD 787. 04/30/02 5,690,000 MI Grand Traverse Co-Michigan Water&Sewer Sys Improvements Series 2002-A C CO-MGR 788. 04/29/02 4,610,000 TX Trail of the Lakes MUD Unlimited Tax Bonds Series 2002 C CO-MGR 789. 04/23/02 6,365,000 TX Fort Bend Co MUD#30 Unlimited Tax Bonds Series 2002 C FA 790. 04/22/02 4,135,000 PA West Earl Sewer Authority Guar Sewer Rev Bonds Series of 2002 N SOLE 791. 04/22/02 6,745,000 TX North Richland Hills-Texas Tax&Wtrwks Swr Surplus Cert Series 2002 N CO-MGR. 792. 04/18/02 11,315,000 TX Gulf Coast Water Authority Water System Contract Rev Bonds Series 2002 N CO-MGR 793. 04/17/02 6,450,000 NJ Florham Park Sewage Auth Sewer Revenue Ref Bonds Series 2002 N SOLE 794. 04/17/02 10,000,000 PA Chester Water Authority Water Revenue Bonds Series of 20022 C CO-MGR 795. 04/17/02 130,260,000 TX Houston Area Water Corp Contract Revenue Bonds Series of 2002 N CO-MGR 796. 04/16/02 6,800,000 TX Nacogdoches-Texas Tax&Util Sys Surp Rev Certs Series 2002 C LEAD 797. 04/16/02 19,380,000 TX Carrollton-Texas Wtr&Swr Sys Rev Ref&Imp Bonds Series 2002 N FA 798. 04/15/02 435,000 IA Waverly-Iowa Water Revenue Bonds Series 2002 C SOLE 799. 04/12/02 19,920,000 FL Panama City Beach-Florida Utility System Revenue Bonds Series 2002 N SOLE 800. 04/03/02 12,980,000 FL Naples-Florida Water&Sewer Rev Ref Bonds Series 2002 N CO-MGR 801, 04/02/02 3,700,000 NC Northampton Co-North Carolina GO Water Bonds Series 2002 C CO-MGR 802. 04/02/02 16,320,000 CO Colorado Wtr Res and Pwr Dev Auth Drinking Wtr Revenue Bonds 2002 Series A C LEAD 803. 04/02/02 30,700,000 CO Denver City and Co-Colorado Wastewater Revenue Bonds Series 2002 C CO-MGR 804. 04/01/02 8,500,000 TX Lewisville-Texas Waterworks&Swr Sys Rev Bonds Series 2002-A C CO-MGR 805. 03/28/02 4,155,000 FL Orange Park-Florida Water&Sewer Ref Rev Bonds Series 2002 N SOLE 806. 03/26/02 900,000 TX Cinco MUD#8 Unlimited Tax Bonds Series 2002 C FA 807. 03/26/02 4,310,000 TX League City-Texas Waterworks&Sewer Sys Rev Bonds Series 2002 C CO-MGR. 808. 03/25/02 13,750,000 TX Brazos River Authority Revenue Refunding Bonds Series 2002 N CO-MGR 809. 03/21/02 2,680,000 CA Oakdale Public Fin Auth Revenue Bonds 2002 Series A N SOLE 810. 03/21/02 30,895,000 CO Arapahoe Co Water&Wstwtr Auth GO Acquisition Bonds Series 2002B N FA 811. 03/21/02 32,975,000 CO Arapahoe Cc Water&Wstwtr Auth GO Project Bonds Series 2002A N FA 812. 03/20/02 220,000,000 AZ Phoenix Civic Improvement Corp Junior Lien Wtr Sys Rev Bonds Series 2002 N CO-MGR 813. 03/19/02 11,460,000 CO Metro Wastewater Reclamation Dt Sewer Rev Ref Bonds Series 2003A N SOLE 814. 03/19/02 35,120,000 CO Metro Wastewater Reclamation Dt Sewer Rev Ref Bonds Series 2002A N SOLE 815. 03/12/02 2,900,000 TX Harris Co MUD#53 Waterworks&Swr Sys Combination Series 2002 C FA 816. 03/07/02 5,865,000 SC Greenville-South Carolina Sewer System Revenue Bonds Series 2002 N SOLE 817. 03/06/02 3,580,000 PA East Cocalico Twp Authority Guar Sewer Rev Bonds Series of 2002 N SOLE 818. 03/06/02 5,250,000 TX Northwest Harris Co MUD#29 Untld Tax Refunding Bonds Series 2002 N LEAD 819. 03/05/02 3,775,000 TX Williamson Co MUD#9 Wtrworks&Swr Sys Comb Unitd Tax Series 2002 C CO-MGR 820. 03/01/02 3,000,000 IA Mount Pleasant-Iowa Sewer Revenue Bonds Series 2002C C SOLE 821. 02/28/02 1,545,000 TX Lubbock City-Texas Tax&Swr Sys Surplus Rev Certs Series 2002 C LEAD 822. 02/28/02 1,945,000 TX Hams Co MUD#70 Unlimited Tax Bonds Series 2002 C CO-MGR 823. 02/28/02 6,450,000 TX Lubbock City-Texas Tax&Wtrwks Surplus Rev Cert Series 2002 C LEAD 824. 02/28/02 7,240,000 TX Greens Parkway MUD Unitd Tax Refunding Bonds Series 2002 N SOLE 825. 02/27/02 25,785,000 IA Iowa City-Iowa Sewer Revenue Ref Bonds C SOLE 826. 02/26/02 3,000,000 TX Bedford City-Texas Waterworks&Sewer Sys Rev Bonds Series 2002 C CO-MGR 827. 02/21/02 900,000 TX Lake MUD Unlimited Tax Bonds Series 2002 C FA 828. 02/21/02 935,000 IA Monticello-Iowa Sewer Revenue Bonds Series 2002 C LEAD 829. 02/20/02 3,700,000 TX Montgomery Co MUD#67 Water&Swr Sys Unitd Tax Bonds Series 2002 C FA 830. 02/19/02 4,100,000 TX Grand Prairie-Texas Wtr&Wstwtr Sys Rev Bonds Series 2002 C CO-MGR Page 13 of 19 Solid Waste,Water& Sewer Financing Experience 1 116 Sale Date Par Amount State Issue]- Issue Description Series Bid Role 831. 02/18/02 1,350,000 MN Western Lake Superior Sanit Dt GO Refunding Bonds Series 2002-B C SOLE 832. 02/18/02 11,810,000 TX Lewisville-Texas Wtrwks&Swr Sys Rev Ref Bonds Series 2002 N SOLE 833. 02/14/02 37,255,000 SC Greenville-South Carolina Water System Revenue Bonds Series 2002 N CO-MGR 834. 02/13/02 13,920,000 FL Jupiter-Florida Water Rev Ref Bonds Series 2002 N SOLE 835. 02/13/02 43,455,000 TX Dallas City-Texas Wtrwks&Swr Sys Rev Ref Bonds Series 2002 C LEAD 836. 02/13/02 309,110,000 TX Houston City-Texas Junior Lien Rev Fwd Ref Bonds Series 2002B N CO-MGR 837. 02/13/02 425,030,000 TX Houston City-Texas Junior Lien Rev Refunding Bonds Series 2002A N CO-MGR 838. 02/07/02 1,640,000 TX Brazoria Co MUD#2 Wtrwks&Swr Comb Rev Bonds Series 2002 C FA 839. 02/07/02 300,510,000 TX San Antonio City-Texas Water Sys Rev Ref Bonds Series 2002 N CO-MGR 840. 02/06/02 4,455,000 TX Universal City-Texas Wtrwks&Swr Rev Ref Imp Bonds Series 2002 N SOLE 841. 02/05/02 14,100,000 SC Spartanburg Sanitary Sewer Dt General Obligation Bonds Series 2002 C CO-MGR 842. 01/28/02 1,575,000 TX Hams Co MUD#118 Wtrwrks&Swr Rev Ref Bonds Series 2002 N CO-MGR 843. 01/24/02 129,000,000 AZ Mesa-Arizona Utility Sys Rev Ref Bonds Series 2002 N CO-MGR 844. 01/19/02 2,895,000 PA East Cocalico Twp Authority Water Revenue Bonds Series 2002 N SOLE 845. 01/15/02 1,710,000 FL St Lucie Co-Florida Water and Sewer Revenue Bonds Series 2002 N SOLE 846. 01/15/02 17,000,000 MI Muskegon Co-Michigan Wastewater Mgt Sys No 2 Rev Bonds Series 2002 C CO-MGR 847. 01/08/02 7,850,000 MI Washtenaw Co-Michigan Multi-Lakes San Swr Sys Phase 11 Series 2002 C CO-MGR 848. 12/12/01 32,720,000 LA New Orleans City-Louisiana Sewerage Service Revenue Bonds Series 2001 C CO-MGR 849. 12/11/01 1,295,000 OR Stayton-Oregon GO Water Refunding Bonds Series 2001 N SOLE 850. 12/11101 7,975,000 PA St Marys Municipal Authority Guar Sewer Rev Bonds Series of 2002 N LEAD 851. 12/10/01 7,850,000 MI Wyoming-Michigan Water Supply Sys Revenue Bonds Series 2001 C CO-MGR 852. 12/10/01 49,125,000 TX Fort Worth City-Texas Water&Sewer Sys Rev Bonds Series 2001 N CO-MGR 853. 12/06/01 59,115,000 PA Bucks Co Water&Sewer Authority Water and Sewer Revenue Bonds Ser 2001 A&B N CO-MGR 854, 12/05/01 5,600,000 TX Fort Bend Co MUD#1 Unlimited Tax Bonds Series 2001 C FA 855. 12/05/01 13,980,000 FL Winter Springs-Florida Water&Sewer Ref Rev Bonds Series 2002 N LEAD 856. 12/04/01 715,000 NJ Fair Lawn-New Jersey Water Utilitiy Improvement Bonds Series 2001 C SOLE 857. 12/03/01 2,800,000 TX Northwest Hams Co MUD#16 Water&Swr Comb Tax Rev Bonds Series 2001 C FA 858. 12/03/01 30,000,000 NM Albuquerque-New Mexico Joint Water&Sewer Sys Rev Bonds Series 2001 C SOLE 859. 11/29/01 3,060,000 TX Harris Co MUD#284 Unlimited Tax Bonds Series 2001 C FA 860. 11/29/01 7,185,000 TX Montgomery Co MUD#60 Unitd Tax Refunding Bonds Series 2001 N LEAD 861. 11/28/01 1,495,000 TX Harris Co MUD#173 Unlimited Tax Bonds Series 2001 C FA 862. 11/28/01 95,380,000 TX Austin-Texas Wtr&Wstwtr Sys Rev Ref Bonds Series 2001 C N CO-MGR 863. 11/27/01 1,580,000 TX Harris-Fort Bend Cos MUD#1 Unlimited Tax Bonds Series 2001 C LEAD 864. 11/27/01 5,350,000 TX Brazoria County MUD#19 Unlimited Tax Bonds Series 2001 C LEAD 865. 11/27/01 5,845,000 FL Escambia Co Utilities Authority Utility System Ref Rev Bonds Series 2001B N SOLE 866. 11/27/01 7,000,000 MI Ypsilanti Comm Utilities Auth Sanitary Sewer Sys#3 Bonds C LEAD 867. 11/26/01 7,280,000 WI Wausau-Wisconsin Sewerage Sys Rev Ref Bonds Series 2001 C LEAD 868. l 1/19/01 3,755,000 TX North Mission Glen MUD Unlimited Tax Bonds Series 2001-A C FA 869. 11/15/01 1,640,000 TX Harris Co MUD#43 Waterworks and Sewer Sys Comb Series 2001 C FA 870. 11/15/01 11,225,000 TX Remington MUD#I Unlimited Tax Bonds Series 2001 C LEAD 871. 11/14/01 2,330,000 TX Rockport-Texas GO Refunding Bonds Series 2001 N FA 872. 11/14/01 4,385,000 TX Rockport-Texas Tax&Wtr&Swr Surplus Rev Cert Series 2001 N FA 873. 11/13/01 73,100,000 IL Chicago City-Illinois Second Lien Wstwtr Trans Bonds Series 2001 N LEAD 874. 11/13/01 114,585,000 IL Chicago City-Illinois Second Lien Wstwtr Trans Bonds Series 2001A N LEAD 875. 11/08/01 3,020,000 TX Hams Co MUD#371 Unlimited Tax Bonds Series 2001 C FA 876. 11/08/01 26,150,000 PA North Penn Water Authority Water Revenue Bonds Series of 2002 N SOLE 877. 11/07/01 1,570,000 TX Cinco MUD#10 Unlimited Tax Bonds Series 2001 C FA 878. 11/07/01 25,415,000 FL Apopka-Florida Util Sys Imp and Ref Rev Bonds Series 2001 C LEAD 879. 11105101 5,200,000 MN Maple Grove-Minnesota GO Water Revenue Bonds Series 2001 C C SOLE 880. 11/05/01 8,000,000 MI Clinton Charter Twp-Michigan Water Supply&Swr Disp Rev Bonds Series 2001 C CO-MGR 881, 11/05/01 9,995,000 TX Fort Bend Co MUD#117 Unlimited Tax Bonds Series 2001 C FA 882. 11/05/01 10,895,000 TX Mesquite-Texas Wtrwks&Swr Rev Ref&Imp Bonds Series 2001 N FA 883. 10/31/01 2,080,000 TX Forest Hills MUD Wtrwks Swr Unitd Tax&Rev Bonds Series 2001 C FA 884. 10/30/0l 2,030,000 TX Harris/Fort Bend Co MUD#5 Unlimited Tax Bonds Series 2001 C CO-MGR 885. 10/29/01 9,200,000 TX Harris Co Water Cntl Imp Dt#110 Waterworks&Swr Sys Tax&Rev Series 2001 C FA 886. 10/25/01 4,265,000 TX Northwest Harris Co MUD#19 Unitd Tax Refunding Bonds Series 2001 N LEAD 887. 10/22/01 1,715,000 IA Pocahontas-Iowa GO Refunding Bonds Series 2001 N SOLE 888. 10/22/01 4,500,000 TX Haltom City-Texas Wastewater&Swr Sys Rev Bonds Series 2001 C CO-MGR 889. 10/22/01 10,000,000 PA Montgomery Co Sewer Authority Guar Sewer Rev Bonds Series of 2001 N SOLE 890. 10/18/01 1,535,000 IA Ankeny-Iowa Sewer Rev Refunding Bonds Series 2001 N SOLE 891. 10/18/01 28,255,000 PA Cranberry Twp-Pennsylvania General Obligation Bonds Series B of 2001 N LEAD 892. 10/18/01 238,230,000 FL Tampa Bay Water Utility Sys Revenue Bonds Series 2001 B N LEAD 893. 10/16/01 4,000,000 TX McKinney-Texas Tax&Ltd Pledge Wtr&Swr Certs Series 2001-A C CO-MGR 894, 10/12/01 3,245,000 TX Brushy Creek MUD Comb Unitd Tax&Rev Ref Bonds Series 2001 N SOLE Page 14 of 19 RB('Dain Rauscher Solid Waste,Water& Sewer Financing Experience i ii6 Sale Date Par Amount state Issuer Issue Description Series Bid Role 895. 10/12/01 13,250,000 TX Brushy Creek MUD Comb Ultd Tax&Rev&Ref Bonds Series 2001 N SOLE 896. 10/1 1/01 216,375,000 NY NYC Municipal Water Finance Auth Water&Sewer Sys Rev Bonds 2002 Series G N CO-MGR. 897. 10/09/01 10,000,000 TX Pearland City-Texas Water and Sewer Sys Rev Bonds Series 2001 C LEAD 898. 10/09/01 40,725,000 NJ Ocean Co Utilities Authority Wastewater Ref Revenue Bonds Series 2001 N CO-MGR 899. 10/02/01 16,325,000 KY Northern Kentucky Water Dt Water District Revenue Bonds Series 2001-A C CO-MGR 900. 09/27/01 3,390,000 TX Harris Co MUD#368 Unlimited Tax Bonds Series 2001 C FA 901. 09/27/01 6,485,000 PA Cambria Somerset Authority Guar Water Rev Bonds Series of 2001 N SOLE 902. 09/27/01 25,000,000 FL Martin Co-Florida Utilities System Revenue Bonds Series 2001 N LEAD 903. 09/26/01 2,985,000 PA Greater Pottsville Area Sewer An Sewer Revenue Bonds Series of 2001 N SOLE 904. 09/26/01 5,500,000 WI Walworth Co Metro Sewerage Dt GO Sewerage System Bonds C LEAD 905. 09/26/01 186,925,000 MI Detroit City-Michigan Sewage Disposal Revenue Bonds Series 2001A&B N CO-MGR 906. 09/24/01 4,405,000 PA Berwick Area Joint Sewer Auth Guar Sewer Rev Bonds Series of 2001 N SOLE 907. 09/20/01 1,470,000 TX Paseo De La Resaca MUD#3 Unlimited Tax Contract Rev Bonds Series 2001 C LEAD 908. 09/20/01 6,530,000 TX Cypress Hill MUD#1 Unlimited Tax Bonds Series 2001 C LEAD 909. 09/20/01 6,845,000 TX Harris Co MUD#365 Unlimited Tax Bonds Series 2001 C CO-MGR. 910. 09/20/01 9,040,000 TX Harris Co MUD#53 Wtrwks&Swr Rev Ref Bonds Series 2001 N LEAD 911. 09/19/01 5,750,000 MI Genoa-Oceola Swr&Wtr Authority Wastewater Treatment Plant Imp Series 2001 C CO-MGR 912. 09/10/01 2,295,000 MN Wright Co-Minnesota Unitd Tax GO Sewer Revenue Bonds Series 2001A C SOLE 913. 09/06/01 118,770,000 TX Wichita Falls-Texas Water&Swr Priority Lien Bonds Series 2001 N SOLE 914. 08/29/01 6,935,000 PA Schuylkill Co Municipal Authority Water and Sewer Rev Ref Bonds Series of 2001 N SOLE 915. 08/28/01 1,865,000 TX Cypress Creek Utility Dt Unlimited Tax Bonds Series 2001 C FA 916. 08/28/01 3,900,000 TX Harris Cc MUD#230 Unlimited Tax Bonds Series 2001 C LEAD 917. 08/28/01 7,470,000 TX Brazoria Co MUD#17 Unlimited Tax Bonds Series 2001 C LEAD 918. 08/27/01 1,745,000 PA Ashland Borough-Pennsylvania General Obligation Bonds Series of 2001 N SOLE 919. 08/24/01 41,745,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds Series 2002 D N CO-MGR. 920. 08/24/01 105,635,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds Series 2002 F N CO-MGR 921. 08/24/01 213,850,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds Series 2002 E N CO-MGR 922. 08/22/01 1,725,000 OR Twin Rocks Sanitary District Sewer Rev Refunding BANS Series 2001 N SOLE 923. 08/21/01 2,105,000 TX Rowlett-Texas Waterworks&Sewer Rev Bonds Series 2001 N SOLE 924. 08/20/01 4,500,000 IA Johnston-Iowa Water Revenue Bonds Series 2001 B C LEAD 925. 08/09/01 3,985,000 PA Greene Twp Municipal Auth Sewer Revenue Bonds Series of 2001 N SOLE 926. 08/09/01 8,010,000 TX Willow Fork Drainage Dt Unlimited Tax Bonds Series 2001 C CO-MGR 927. 08/09/01 23,500,000 TX College Station-Texas Utility System Revenue Bonds Series 2001 C LEAD 928. 08/08/01 99,980,000 AZ Phoenix Civic Improvement Corp Junior Lien Wtr Sys Rev Ref Bonds Series 2001 N LEAD 929. 08/03/01 46,580,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds Series 2002 C N CO-MGR. 930. 08/03/01 171,455,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds Series 2002 B N CO-MGR 931. 08/01/01 309,370,000 FL Tampa Bay Water Refunding&Improv Rev Bonds Series 2001 A N LEAD 932. 07/31/01 1,500,000 TX Galveston Co MUD#13 Wtr&Swr Comb Tax&Rev Bonds Series 2001 C LEAD 933. 07/31/01 5,200,000 TX Sienna Plantation MUD#2 Unlimited Tax Bonds Series 2001 C FA 934. 07/26/01 5,040,000 TX Fort Bend Co MUD#23 Unlimited Tax Bonds Series 2001 C FA 935. 07/26/01 121,410,000 PA Allegheny Co Sanitary Authority Sewer Revenue Bonds Ref Ser of 2001 N FA 936. 07/25/01 140,000,000 CA San Francisco City&Co Pub Util San Francisco Water Revenue Bonds Series 2001-A C CO-MGR 937. 07/24/01 1,010,000 WI Prairie du Chien-Wisconsin Water Sys Mortgage Rev Ref Bonds Series 2001 C SOLE 938. 07/24/01 54,930,000 CO Broomfield-Colorado Swr&Wtr Reclamation Rev Bonds Series 2001 C FA 939. 07/23/01 1,600,000 MN Albert Lea-Minnesota GO Water Revenue Bonds Series 2001 C SOLE 940. 07/19/01 6,935,000 CA American Canyon-California Ltd Obligation Improv Bonds- N SOLE 941. 07/18/01 4,980,000 TX Montgomery Co MUD#39 Wtrwks&Sys Sys Unitd Tax Bonds Series 2001 C FA 942. 07/18/01 5,515,000 TX Montgomery Co MUD#46 Wtrwks&Swr Sys Unitd Tax Bonds Series 2001 C FA 943. 07/17/01 8,960,000 MI Hartland-Michigan Water System Spec Assess Bonds Series 2001 C CO-MGR. 944. 07/17/01 232,440,000 TX Houston City-Texas Water&Sewer Jr Lien Ref Bonds Series 2001A N CO-MGR 945. 07/12/01 1,050,000 TX Louetta North Public Utility Dt Unlimited Tax Bonds Series 2001 C CO-MGR. 946. 07/12/01 4,000,000 MI Ypsilanti City-Michigan Wtr Sup&Swr Disp Sys Rev Bond Series 2001 C CO-MGR 947. 07/12/01 9,900,000 PA Dover Twp Sewer Authority Guar Sewer Rev Bonds Series of 2001 N SOLE 948. 07/11/01 3,300,000 TX Sienna Plantation MUD#3 Unlimited Tax Bonds Series 2001 C SOLE 949. 07/11/01 6,065,000 FL Winter Springs-Florida Water&Sewer Ref Rev Bonds Series 2001 N CO-MGR 950. 07/11/01 6,750,000 TX Barker-Cypress MUD Unitd Tax Ref Bonds Series 2001 N CO-MGR 951. 07/10/01 5,220,000 PA Mount Joy Borough Auth Guar Water Rev Bonds Series of 2001 N SOLE 952. 07/09/01 4,200,000 MI Redford Charter Twp-Michigan Water Supply&Sewage Rev Bonds Series 2001 C CO-MGR. 953. 06/28/01 1,845,000 TX Copperas Cove-Texas GO Refunding Bonds Series 2001A N LEAD 954. 06/28/01 7,560,000 MI Isabella Cc Dept of Public Works Wastewater Refunding Bonds Series 2001 C SOLE 955. 06/28/01 10,340,000 FL Escambia Co Utilities Authority Utility System Revenue Bonds Series 2001 N LEAD 956. 06/28/01 39,000,000 TX North Texas Municipal Water Dt Water System Revenue Bonds Series 2001 C CO-MGR. 957. 06/28/01 321,805,000 MA Massachusetts Wtr Pollut Abate Tr Pool Program Bonds Series 7 N CO-MGR 958. 06/27/01 1,000,000 OR North Clackamas Co Water Comm Water Revenue Oblig Series 2001 N SOLE Page 15 of 19 Solid Waste,Water& Sewer Financing Experience 1 I6 Sale Date Par Amount state Issue]- Issue Description Series Bid [Cole 959. 06/27/01 5,440,000 TX North Mission Glen MUD Unlimited Tax Ref Bonds Series 2001 N LEAD 960. 06/26/01 1,270,000 TX Fort Bend Co MUD#81 Unlimited Tax Bonds Series 2001 C LEAD 961. 06/25/01 2,265,000 PA Tamaqua Borough Authority Guar Sewer Rev Bonds Series A of 2001 N SOLE 962. 06/20/01 1,800,000 TX Jasper Economic Dev Corp Sales Tax Revenue Bonds Series 2001 C LEAD 963. 06/20/01 6,510,000 TX Newport MUD Wtrwks Swr Tax&Rev Ref Bonds Series 2001 N CO-MGR 964. 06/20/01 50,000,000 FL Florida Water Pollution Fin Corp Water Pollution Cntrl Rev Bonds Series 2001 N CO-MGR 965. 06/19/O1 5,000,000 TX McKinney-Texas Wtr&Swr Rev Certs Of Obligation Series 2001 C CO-MGR 966. 06/19/01 7,500,000 AZ Goodyear Industrial Dev Auth Water&Sewer Rev Bonds Series 2001 N SOLE 967. 06/18/01 1,160,000 IA Burlington-Iowa Sewer Revenue Bonds Series 2001 A C SOLE 968. 06/14/01 3,430,000 TX Fort Bend Co MUD#118 Unlimited Tax Bonds Series 2001 C FA 969. 06/14/01 3,518,000 TX Burleson-Texas General Obligation Bonds Series 2001 N LEAD 970. 06/14/01 6,475,000 TX Burleson-Texas Waterworks&Swr Sys Rev Bonds Series 2001 N LEAD 971. 06/14/01 35,000,000 TX Lubbock City-Texas Tax&Muniy Drainage Rev Cert Series 2001 N CO-MGR 972, 06/13/01 2,270,000 PA Kulpmont-Marion Hgts Jt Muni Au Sewer Revenue Bonds Series of 2001 N SOLE 973. 06/13/O1 8,855,000 FL Cape Coral-Florida Waste Water Assessment Ref Bonds Series 2002 N LEAD 974. 06/13/01 9,325,000 FL Cape Coral-Florida Waste Water Assessment Ref Bonds Series 2001 N LEAD 975, 06/13/01 216,305,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2002 Series A N CO-MGR 976. 06/12/01 3,750,000 TX Grant Road Public Utility Dt Unlimited Tax Bonds Series 2001 C LEAD 977. 06/11/01 3,615,000 TX West University Place-Texas Waterworks&Swr Sys Rev Bonds Series 2001 A C FA 978. 06/11/01 166,260,000 AZ Phoenix Civic Improvement Corp Junior Lein Wstwtr Rev Ref Bonds Series 2001 N CO-MGR 979. 06/06/01 7,275,000 FL Naples-Florida Water&Sewer Rev Ref Bonds Series 2001 N CO-MGR 980. 06/O1/O1 245,000 TX Texas Water Development Bonds Series 2001B N CO-MGR 981. 06/01/01 25,000,000 TX Texas Water Financial Assistance Bonds Series 2001A N CO-MGR 982. 06/01/01 30,940,000 TX Texas Water Dev Ref Bonds Series 2001A N CO-MGR 983. 06/01/01 43,725,000 TX Texas Water Financial Assistance Bonds Series 2001B N CO-MGR 984. 06/01/01 49,840,000 TX Texas Water Financial Assistance Bonds Series 2001C N CO-MGR 985. 05/31/01 2,100,000 OR Manzanita-Oregon Water Revenue BANS Series 2001 N SOLE 986. 05/30/01 3,555,000 TX Harris Co MUD#188 Unlimited Tax Bonds Series 2001 C CO-MGR 987. 05/30/01 7,030,000 TX Montgomery Co MUD#47 Unitd Tax Refunding Bonds Series 2001 N LEAD 988, 05/24/O1 1,665,000 TX Post Wood MUD Water&Swr Comb Tax&Rev Bonds Series 2001 C LEAD 989, 05/24/01 100,000,000 CT Connecticut Clean Water Fund Revenue Bonds 2001 Series N CO-MGR 990. 05/23/01 10,000,000 TX Plainview-Texas Tax&Wtr&Swr Surplus Certs Series 2001 C CO-MGR 991. 05/22/01 1,350,000 TX Harris Co MUD#285 Unlimited Tax Bonds Series 2001 C FA 992. 05/22/01 6,100,000 TX Friendswood City-Texas Waterwork&Sewer Sys Rev Bonds Series 2001 C FA 993. 05/17/01 2,555,000 PA Ephrata Area Joint Authority Water Revenue Bonds Series of 2001 N SOLE 994. 05/16/01 8,155,000 TX Montgomery Co MUD#67 Unitd Tax Refunding Bonds Series 2001 N LEAD 995. 05/16/01 10,000,000 PA Springfield Twp-Pennsylvania Guar Sewer Rev Bonds Series of 2001 N LEAD 996. 05/09/O1 3,035,000 TX Northwest Harris Co MUD#20 Refunding Bonds Series 2001 N SOLE 997. 05/03/01 3,400,000 TX Brazoria Co MUD#3 Wtr&Swr Sys Tax&Rev Bonds Series 2001 C FA 998. 05/03/01 25,320,000 KY Lexington-Fayette Urban Co Govt Sewer System Revenue Bonds Series 2001 A C CO-MGR 999. 05/02/01 1,060,000 TX Brazos River Authority Water Supply Sys Rev Ref Bonds Series 2001 B N LEAD 1000. 05/02/01 186,105,000 FL Hillsborough Co-Florida Junior Lein Ref Utility Rev Bonds Series 2001 N CO-MGR 1001. 05/01/01 3,550,000 PA Jenkins Sanitary Authority Guar Sewer Rev Bonds Series of 2001 N SOLE 1002. 04/27/01 13,237,000 TX Brazos River Authority Surface Water&Trtmnt Rev Bonds Series 2001 N CO-MGR 1003. 04/27/01 86,105,000 NY NYC Municipal Water Finance Auth Crossover Refunding Bonds 2001 Series E N CO-MGR 1004. 04/27/01 112,040,000 NY NYC Municipal Water Finance Auth Water&Sewer Sys Rev Bonds 2001 Series C N CO-MGR 1005. 04/27/O1 255,239,000 NY NYC Municipal Water Finance Auth Water&Sewer Sys Rev Bonds 2001 Series D N CO-MGR 1006. 04/24/01 1,900,000 TX Georgetown-Texas Utility System Revenue Bonds Series 2001 N SOLE 1007. 04/24/01 3,255,000 TX North Richland Hills-Texas Tax&Wtr Wrks Rev Certs of Oblig Series 2001 N CO-MGR 1008. 04/24/01 3,348,000 NJ Lyndhurst Twp-New Jersey Water Utility Bonds Series 2001 C SOLE 1009. 04/24/01 24,280,000 KS Johnson Co Water Dt#1 Water Revenue Ref Bonds Series 2001 C LEAD 1010. 04/17/01 1,650,000 MN Farmington City-Minnesota GO Utility Rev Bonds Series 2001B N SOLE 1011. 04/l7/01 7,000,000 MI Three Rivers City-Michigan GO Limited Tax Swr Sys Imp Bonds Series 2001 C LEAD 1012. 04/17/01 59,545,000 TX Gardner City-Massachusetts Utility Sys Rev Ref&Imp Bonds Series 2001 N LEAD 1013. 04/11/01 44,885,000 TX Odessa-Texas Wtrwks&Swr Sys Rev Ref Bonds Series 2001 N CO-MGR 1014. 04/10/01 1,505,000 IA Pella City-Iowa General Obligation Bonds Series 200113 C SOLE 1015. 04/10/O1 5,445,000 PA Millcreek Twp Water Auth Guar Water Rev Bonds Series of 2001 N LEAD 1016. 04/05/01 6,530,000 TX Fort Bend Co MUD#109 Unlimited Tax Refunding Bonds Series 2001 N SOLE 1017. 04/03/01 2,700,000 PA Muncy Borough Municipal Auth Guar Water Rev Bonds Series of 2001 N SOLE 1018. 03/28/01 19,440,000 AZ Pima Co-Arizona Sewer Rev Ref Bonds Series 2001 N SOLE 1019. 03/22/01 31,520,000 TX Irving-Texas Wtrwks&Swr Rev Ref Imp Bonds Series 2001 N LEAD 1020. 03/21/01 3,000,000 IN Speedway-Indiana Waterworks Revenue Bonds Series 2001 C SOLE 1021. 03/19/01 7,925,000 IL Rock Island-Illinois General Obligation Bonds Series 2001 C CO-MGR 1022. 03/16/01 9,180,000 TX Cinco MUD#1 Contract Rev Ref Bonds Series 2001 N CO-MGR Page 16 of 19 . . Solid Waste,Water& Sewer Financing Experience I I16 Sale Date Par Aniount State Issuer Issue Description Series Bid Role 1023. 03/14/01 3,395,000 TX Palmer Plantation MUD#2 Wtrwks&Swr Sys Rev Ref Bonds Series 2001 N SOLE 1024. 03/09/01 4,555,000 PA Lower Lackawanna Sanitary Auth Guar Sewer Rev Bonds Series of 2001 N SOLE 1025. 03/09/01 4,885,000 TX Trinity River Authority System Revenue Refunding Bonds Series 2001 N SOLE 1026. 03/07/01 2,670,000 TX Harris Co MUD#5 Unitd Tax Refunding Bonds Series 2001 N LEAD 1027. 03/07/01 4,940,000 TX Brazoria Co MUD#1 Wtrwks&Swr Tax&Rev Ref Bonds Series 2001 N SOLE 1028. 03/02/01 225,000 OR Dayville-Oregon Wastewater Sys Rev BANS Series 2001 N SOLE 1029. 02/27/01 3,975,000 TX Brazoria Co MUD#18 Unlimited Tax Bonds Series 2001 C SOLE 1030. 02/27/01 4,370,000 PA Loyalsock Twp-Pennsylvania General Obligation Bonds Series of 2001 N SOLE 1031. 02/26/01 2,600,000 TX Hams Co MUD#370 Unlimited Tax Bonds Series 2001 C LEAD 1032. 02/26/01 81,990,000 FL Jacksonville Electric Authority Water&Swr Sys Sub Rev Bonds First Series N CO-MGR 1033. 02/20/01 335,900,000 TN Nashville-Davidson Co Metro Govt GO Multi-Purpose Imp Bonds Series 2001 A&B C CO-MGR 1034. 02/19/01 2,475,000 PA Leacock Twp Sewer Auth Guar Sewer Rev Bonds Series of 2001 N SOLE 1035. 02/14/01 5,975,000 IN Washington-Indiana Waterworks Revenue Bonds Series of 2001 C CO-MGR 1036. 02/05/01 1,505,000 TX Northampton MUD Waterworks&Sewer System Comb Series 2001 C FA 1037. 01/30/01 2,040,000 TX West Harris Co MUD#4 Unlimited Tax Bonds Series 2001 C LEAD 1038. 01/25/01 2,500,000 NE Douglas Co Sanit and Imp Dt#385 General Obligation Bonds Series 2001 N LEAD 1039. 01/24/01 5,005,000 PA Robesonia-Wernersville Muni Au Sewer Rev Ref Bonds Series 2001 N SOLE 1040. 01/18/01 1,900,000 TX Cinco MUD#3 Unlimited Tax Bonds Series 2001 C FA 1041. 01/18/01 6,835,000 TX Travis Co Water Cntl Imp Dt#17 Unlimited Tax Bonds Series 2001 C CO-MGR 1042. 01/17/01 995,000 TX Eldridge Road MUD Unlimited Tax Bonds Series 2001 C LEAD 1043. 01/16/01 9,990,000 MI Lake St.Clair Clean Water Drain Drainage District Bonds Series 2001-A C CO-MGR 1044. 01/11/01 3,000,000 TN Brentwood City-Tennessee Water Revenue&Tax Bonds Series 2001 C CO-MGR 1045. 01/11/01 250,000,000 NV Las Vegas Valley Water Dt GO Water Commercial Paper Notes Series A N CO-MGR 1046. 01/10/01 4,525,000 TX Harris Co Water Cntl Imp Dt#119 Unlimited Tax Bonds Series 2001 C FA 1047. 01/09/01 3,675,000 TX Northwest Park MUD Unlimited Tax Bonds Series 2001 C CO-MGR 1048. 01/04/01 2,540,000 NE Douglas Co Sanit and Imp Dt#380 General Obligation Bonds N LEAD 1049. 12/21/00 7,075,000 AZ Goodyear Comm Facs Util Dt#1 District GO Bonds Series 2000 N SOLE 1050. 12/19/00 465,000 OR Wood Village-Oregon Ltd Tax Improvement Bonds Series 2000 N SOLE 1051. 12/19/00 130,000,000 FL Jacksonville Electric Authority Water&Sewer Sys Rev Bonds 2001 Series A N CO-MGR 1052. 12/12/00 9,740,000 PA Kline Twp Municipal Auth BANS Series of 2000&01 P SOLE 1053. 12/11/00 6,500,000 MI Mount Pleasant-Michigan Wastewater System Revenue Bonds Series 2000 C CO-MGR 1054. 12/08/00 68,675,000 NY NYC Municipal Water Finance Auth Water&Sewer Sys Rev Bonds 2001 Series B N CO-MGR 1055. 12/06/00 3,325,000 TX Fort Bend Co MUD#1 Unlimited Tax Bonds Series 2000 C FA 1056. 12/06/00 3,945,000 TX Fort Bend Co MUD#117 Unlimited Tax Bonds Series 2000 C FA 1057. 12/06/00 8,085,000 TX Southlake-Texas Wtrwks&Swr Rev Cert of Oblig Series 2000 D N CO-MGR 1058. 12/06/00 17,020,000 PA North Huntingdon Twp Muni Auth Gtd Sewer Rev Bonds Series of 2001 N SOLE 1059. 12/05/00 1,365,000 OR Myrtle Point-Oregon Water Revenue Bonds Series 2000 N SOLE 1060. 12/05/00 4,200,000 TX Sienna Plantation MUD#2 Unlimited Tax Bonds Series 2000 B C LEAD 1061. 12/04/00 5,170,000 TX Mesquite-Texas Waterworks&Sewer Sys Rev Bonds Series 2000 N FA 1062. 12/01/00 4,930,000 FL Hillsborough Co-Florida Reclaimed Water Spec Assess Bonds Series 2000 N LEAD 1063. 12/01/00 29,575,000 FL Hillsborough Co-Florida Capacity Spec Assess Rev Bonds Series 2000 N LEAD 1064. 11/30/00 4,100,000 FL Northern Palm Beach Co Imp Dt Water Control&Improv Bonds Series 2000B N LEAD 1065. 11/30/00 4,365,000 FL Northern Palm Beach Co Imp Dt Water Control&Improv Bonds Series 2000A N LEAD 1066. 11/28/00 1,950,000 TX Harris Co MUD#61 Unlimited Tax Bonds Series 2000 C CO-MGR 1067. 11/28/00 3,275,000 OR Lafayette-Oregon Water Revenue Bonds Series 2000 N SOLE 1068. 11/21/00 4,955,000 TX Montgomery Co MUD#60 Water and Sewer Unitd Tax Bonds Series 2000 C FA 1069. 11/21/00 328,225,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds 2001 Series A N CO-MGR 1070. 11/20/00 2,550,000 MN Albertville City-Minnesota GO Sewer Rev Bonds Series 2000A C SOLE 1071. 11/20/00 3,105,000 NM Las Cruces-New Mexico Joint Utility Revenue Bonds Series 2000 B N SOLE 1072. 11/17/00 17,262,000 TX Brazos River Authority Contract Revenue Bonds Series 2000 N CO-MGR 1073. 11/16/00 8,900,000 MI Ypsilanti Comm Utilities Auth Sanitary Sewer System#2 Bonds Series 2000 C CO-MGR 1074. 11/14/00 1,995,000 TX Springwoods MUD Unlimited Tax&Limited Rev Bonds Series 2000 C CO-MGR 1075. 11/14/00 6,500,000 MI Muskegon-Michigan Wtr Sup Sys No.1 Series 11 Bonds Series 2000 C LEAD 1076. 11/14/00 33,795,000 TX Tyler-Texas Water&Sewer Sys Rev Bonds Series 2000 N LEAD 1077. 11/13/00 355,000 TX Granger-Texas Certificates of Obligation Series 2000 N SOLE 1078. 11/13/00 4,580,000 TX Marshall City-Texas Water&Sewer Revenue Bonds Series 2000 C CO-MGR 1079. 11/10/00 1,075,000 ND Grand Forks-North Dakota Storm Sewer Reserve Rev Bonds Subor Series 2000C N SOLE 1080. 11/08/00 4,175,000 TX Spring West MUD Water&Sewer Revenue Bonds Series 2000 C SOLE 1081. 11/06/00 7,895,000 ND Grand Forks-North Dakota Water Reserve Revenue Bonds Series 2000D C LEAD 1082. 11/03/00 12,595,000 FL Cape Coral-Florida Water&Sewer Ref Revenue Bonds Series 2000 N SOLE 1083. 11/01/00 3,895,000 FL Lake City-Florida Sales Tax Rev&Ref Bonds Series 2000 N SOLE 1084. 11/01/00 4,450,000 TX Harris Co MUD#109 Wtr&Swr Comb Tax&Rev Bonds Series 2000 C LEAD 1085. 11/01/00 6,385,000 FL Lake City-Florida Utilities Rev&Ref Bonds Series 2000 N SOLE 1086. 10/26/00 7,830,000 TX Malcomson Road Utility Dt Unlimited Tax Bonds Series 2000 C CO-MGR Page 17 of 19 Solid Waste,Water& Sewer Financing Experience ! , !!, t 1087. 10/25/00 1,245,000 TX Fort Bend Cc MUD#112 Unlimited Tax Bonds Series 2000 C FA 1088. 10/25/00 6,600,000 NJ Passaic Valley Water Commission Water Supply System Rev Bonds Series 2000 A C LEAD 1089. 10/25l00 8,950,000 TX Remington MUD#1 Unlimited Tax Bonds Series 2000A C LEAD 1090. 10/24/00 2,780,000 TX Montgomery Co MUD#47 Wtr&Sewer Sys Unlimt Tax Bonds Series 2000 C LEAD 1091. 10/23/00 3,060,000 TX Fort Bend Co MUD#41 Unlimited Tax Bonds Series 2000 C CO-MGR 1092. 10/19/00 350,000 OR Rogue River-Oregon Water Refunding Bonds Series 2000 N SOLE Series 6 N CO-MGR 1093. 10/19/00 341,430,000 MA Massachusetts Wtr Pollut Abate Tr Pool Program Bonds 1094. 10/18/00 3,165,000 NV Washoe Co-Nevada Ground Water Remediation Bonds Series 2000 C CO-MGR 1095. 10/17/00 2,365,000 OR Powell Valley Road Water Dt Water Revenue Bonds Series 2000 N SOLE 1096. 10/17/00 103,730,000 TX Fort Worth City-Texas Water&Sewer Rev Ref Bonds Series 2000 B N LEAD 1097. 10/12/00 158,480,000 PA Allegheny Co Sanitary Authority Sewer Revenue Bonds Series of 2000 N FA Series 2000 N SOLE 1098. 10/05/00 1,000,000 OR Mt Scott Water Dt Water Revenue Bonds 1099. 10/03/00 6,969,000 FL Winter Springs-Florida Water and Sewer Ref Rev Bonds Series 2000 N LEAD Series 2000 C LEAD 1100. 10/02/00 1,960,000 TX Cinco MUD#2 Unlimited Tax Bonds Series 2000 C FA 1101. 09/27/00 1,600,000 TX Northwest Harris Cc MUD#28 Unlimited Tax Bonds 5/00 5,000,000 MI Livonia-Michigan Water Supply and Sew Rev Bonds Series 2000 C CO-MGR 1102. 09/2 09/2 /00 2,550,000 TX West Hams Co MUD#7 Wtrwks&Swr Comb Tax&Rev Bonds Series 2000 C LEAD 1103. Series 2000 C O GR Series 2000 C S 1104. 09/14/00 12,700,000 CO Denver City Co Board of Water Comm GO Water Refunding Bonds SOLE E 1105. 09/12/00 9,980,000 TX Harris Co MUD#372 Unlimited Tax Bonds 1106. 09/12/00 12,000,000 IA Iowa City-Iowa Sewer Revenue Bonds Series 2000 C LEAD 1107. 09/12/00 13,750,000 MI Warren City-Michigan Water&Sewer Revenue Bonds Series 2000 C LEAD 1108. 09/12/00 146,000,000 OR Portland-Oregon Sewer System Revenue Bonds 2000 Series A N CO-MGR 1109. 09/07/00 4,185,000 TX Harris Cc MUD#165 Unlimited Tax Refunding Bonds Series 2000 N LEAD 1110. 09/07/00 38,826,000 FL Melbourne-Florida Water&Sewer Ref Rev Bonds Series 2000 A N LEAD 1111. 08/31/00 54,310,000 FL Miami Beach-Florida Water&Sewer Revenue Bonds Series 2000 N FA 1112. 08/30/00 965,000 PA Delaware Water Gap Muni An Guar Sewer Rev Bonds Series 2000 N SOLE 1113. 08/30/00 9,950,000 TX Lower Neches Valley Auth Water Distribution Revenue Bonds Series 2000 N LEAD 1114. 08/28/00 925,000 MN Orono City-Minnesota GO Improvement Bonds Series 2000 C SOLE 1115. 08/28/00 2,985,000 TX Fort Bend Co MUD#2 Wtrwks&Swr Sys Tax&Rev Bonds Series 2000 C FA 1116. 08/28/00 4,300,000 TX Harris Co MUD#230 Unlimited Tax Bonds Series 2000 C FA Wtr Supply&Sanit Swr Sys Bonds C CO-MGR 1117. 08/16/00 3,265,000 MI Calhoun Co-Michigan PP Y Y 1118. 08/14/00 4,780,000 TX Bridgestone MUD Wtrks&Swr Sys Tax&Rev Bonds Series 2000 C CO-MGR 1119. 08/09/00 5,975,000 TX Harris Co MUD#172 Unlimited Tax Bonds Series 2000 C SOLE 1120. 08/08/00 25,000,000 TX Beaumont City-Texas Waterworks&Sewer Sys Rev Bonds Series 2000 C FA 1121. 08/03/00 10,390,000 MI Van Buren Co-Michigan Sewage Disp&Water Supply Bonds Series 2000 C CO-MGR 1122. 08/02/00 1,835,000 TX River Oaks-Texas Water and Sew Rev Ref Bonds Series 2000 N LEAD 1123. 07/31/00 3,500,000 TX Woodlands Metro Center MUD Wtrwks&Swr Sys Unitd Tax Bonds Series 2000 C FA 1124. 07/26/00 3,060,000 TX Montgomery Co MUD#46 Wtrwrks&Swr Sys Unitd Tax Bonds Series 2000 C FA 1125. 07/19/00 20,000,000 TX McAllen-Texas Wtrwks&Swr Sys Improv Rev Bonds Series 2000 C CO-MGR 1126. 07/18/00 4,575,000 TX Keller City-Texas Comb Tax&Rev Cert of Oblig Series 2000 C CO-MGR 1127. 07/18/00 5,665,000 CO Fort Collins Wstwtr Util Enterpr Sewer Revenue Bonds Series 2000 C CO-MGR 1128. 07/11/00 3,330,000 MI Portage-Michigan Public Utility Revenue Bonds Series 2000 C CO-MGR 1129. 07/11/00 5,000,000 FL Lauderhill-Florida Water and Sewer Revenue Bonds Series 2000 C LEAD 1130. 06/29/00 5,725,000 TX Remington MUD#1 Unlimited Tax Bonds Series 2000 C FA 1131. 06/28/00 3,470,000 TX Montgomery Co MUD#39 Wtrwrks&Swr Sys Unitd Tax Bonds Series 2000 C SOLE 1132. 06/27/00 2,625,000 TX Williamson Co MUD#9 Wtrwks&Swr Sys Tax&Rev Bonds Series 2000 C LEAD 1133. 06/20/00 465,000 MN Clay Co-Minnesota GO Watershed Improvement Bonds Series 2000 C SOLE 1134. 06/19/00 6,500,000 TX Rockwall-Texas Tax&Wtrwrks Rev Cert of Oblig Series 2000 C CO-MGR. 1135. 06/15/00 975,000 OR Seal Rock Water Dt Special Water System Obligations Series 2000 N SOLE 1136. 06/13/00 4,100,000 TX Sienna Plantation MUD#2 Unlimited Tax Bonds Series 2000 A C FA 1137. 06/06/00 25,365,000 CO Boulder-Colorado Water and Sewer Revenue Bonds Series 2000 C LEAD 1138. 06/05/00 2,265,000 MN Pipestone-Minnesota GO Utility Rev and Improv Bonds Series 2000 C SOLE 1139. 06/02/00 323,730,000 NY NYC Municipal Water Finance Auth Water and Sewer Revenue Bonds Fiscal 2000 Ser B N CO-MGR 1140. 06/01/00 21,405,000 OR Eugene-Oregon Water Utility System Rev Bonds Series 2000 N CO-MGR 1141. 05/31/00 3,265,000 MI Genoa Twp-Michigan Special Assessment Bonds Series 2000 C CO-MGR 1142. 05/25/00 2,000,000 NE Douglas Co Sanit and Imp Dt#420 General Obligation Bonds Series 2000 N LEAD 1143. 05/23/00 930,000 CO Cherry Hills Village-Colorado Special Assessment Bonds Series 2000 B C SOLE 1144. 05/22/00 3,590,000 IA Cedar Falls City-Iowa Sewer Revenue Bonds Series 20000 C LEAD 1145. 05/18/00 135,000,000 AZ Phoenix Civic Improvement Corp Jr Lien Wastewater Sys Rev Bonds Series 2000 N CO-MGR 1146. 05/17/00 5,200,000 TX Harris Co MUD#196 Unlimited Tax Bonds Series 2000 C FA 1147. 05/16/00 1,512,000 OR Tri-City Water Dt Water Revenue BANS 2000 Series A&B N SOLE 1148. 05/11/00 1,155,000 TX Willow Fork Drainage Dt Unlimited Tax Bonds Series 2000 C FA 1149. 05/11/00 3,120,000 TX Galveston Co MUD#6 Unlimited Tax Bonds Series 2000 C CO-MGR 1150. 05/09/00 2,950,000 TX Interstate MUD Unlimited Tax Bonds Series 2000 C FA Page 18 of 19 Solid Waste,Water& Sewer Financing Experience 1 1 f Sale Date Par.Amount State Issue]- Issue Description Series Bid Role 1151. 05/09/00 3,515,000 TX Friendswood City-Texas Wtrwks and Swr Sys Rev Bonds Series 2000 C FA 1152. 05/08/00 2,315,000 TX North Richland Hills-Texas Tax&Wtr&Swr Rev Cert of Oblig Series 2000 C LEAD 1153. 05/08/00 2,780,000 TX Brazoria Co MUD#4 Unlimited Tax Bonds Series 2000 C FA 1154. 05/05/00 1,579,000 OR Twin Rocks Sanitary District Sewer Rev BANs Series 2000 N SOLE 1155. 05/04/00 3,808,000 OR Talent-Oregon Water Revenue BANS Series 2000 N SOLE 1156. 05/03/00 3,420,000 TX Northwest Harris MUD#30 Unlimited Tax Bonds Series 2000 C CO-MGR 1157. 05/01/00 3,550,000 TX Langham Creek Utility Dt Wtrwks&Swr Comb Tax&Rev Bonds Series 2000 C LEAD 1158. 04/27/00 10,210,000 LA Shreveport City-Louisiana Water&Sewer Revenue Bonds 2000 Series A C CO-MGR 1159. 04/25/00 1,425,000 TX Cinco MUD#8 Unitd Tax Bonds Series 2000 C FA 1160. 04/25/00 3,795,000 TX Gardner City-Massachusetts Utility System Revenue Bonds Series 2000 B N LEAD 1161. 04/25/00 51,085,000 TX Gardner City-Massachusetts Utility System Revenue Bonds Series 2000 A N LEAD 1162. 04/20/00 1,515,000 TX Kings Manor MUD Wtrwks&Swr Tax and Rev Bonds Series 2000 C SOLE 1163. 04/19/00 156,818,000 IL Chicago City-Illinois Senior Lien Water Rev Bonds Series 2000 N CO-MGR 1164. 04/14/00 9,275,000 FL Lynn Haven-Florida Capital Improv Revenue Bonds Series 2000 N LEAD 1165. 04/13/00 10,500,000 TX College Station-Texas Utility System Revenue Bonds Series 2000 C CO-MGR 1166. 04/11/00 5,600,000 TX Sienna Plantation MUD#2 Unitd Tax Bonds Series 2000 C FA 1167. 04/10/00 2,000,000 TX Athens-Texas Tax&Utility Surplus Rev Certs Series 2000 C SOLE 1168. 04/10/00 2,600,000 TX Little Elm-Texas Comb Tax and Rev Cert of Oblig Series 2000 C LEAD 1169, 04/04/00 1,300,000 TX Palmer Plantation MUD#1 Wtr and Swr Sys Tax and Rev Bonds Series 2000 C FA 1170. 04/03/00 1,820,000 TX Laredo-Texas Tax&Sewer Sys Rev Cert of Oblig Series 2000 C LEAD 1171. 04/03/00 2,485,000 TX Laredo-Texas Tax&Water Rev Cert of Oblig Series 2000 C CO-MGR 1172. 03/29/00 2,230,000 TX Cinco MUD#5 Unlimited Tax Bonds Series 2000 C FA 1173. 03/28/00 3,260,000 TX Euless-Texas Wtrwks and Swr Sys Rev Bonds Series 2000 C CO-MGR 1174. 03/28/00 4,320,000 TX Georgetown-Texas Utility System Revenue Bonds Series 2000 N SOLE 1175. 03/27/00 31,000,000 CO Broomfield-Colorado Wtr Activity Enterprise Rev Bonds Series 2000 C LEAD 1176. 03/23/00 400,000 NE Douglas Co Sanit and Imp Dt#387 General Obligation Bonds Series 2000 N LEAD 1177. 03/22/00 1,090,000 TX Harris Co MUD#104 Water and Sewer Tax and Rev Bonds Series 2000 C CO-MGR 1178. 03/21/00 5,700,000 TX Northwest Hams Co MUD#10 Wtr and Swr Sys Tax and Rev Bond Series 2000 C CO-MGR 1179. 03/21/00 11,000,000 TX Ennis-Texas Comb Tax and Rev Cert of Oblig Series 2000 C CO-MGR 1180. 03/13/00 1,640,000 TX Red Oak-Texas GO Refunding Bonds Series 2000 N SOLE 1181. 03/13/00 2,000,000 TX Red Oak-Texas Tax&Wtr&Swr Rev Certs of Obl Series 2000 N SOLE 1182. 03/09/00 2,100,000 TX Northwest Harris Co MUD#20 Unlimited Tax Bonds Series 2000 C FA 1183. 03/09/00 32,095,000 ND North Dakota Water Commission Water Dev Trust Fund Bonds 2000 Series A N SOLE . 1184. 03/08/00 570,000 NE Tecumseh City-Nebraska Comb Utility BANS Series 2000 N SOLE 1185. 03/08/00 3,230,000 TX Lakeway MUD Unlimited Tax Bonds Series 2000 C LEAD 1186. 03/07/00 9,215,000 TX Southlake-Texas Tax Wtrwik&Swr Cert of Oblig Series 2000-A N CO-MGR 1187. 02/24/00 450,000 NE Chappell-Nebraska Water Bonds N SOLE 1188. 02/24/00 2,075,000 OR Vernonia-Oregon Water Revenue BANS Series 2000 N SOLE 1189. 02/22/00 250,000 NE Ashland-Nebraska Sewer GO Bonds N SOLE 1190. 02/22/00 9,500,000 TX Paris-Texas Wtr and Swr Sys Rev Bonds Series 2000 C CO-MGR 1191. 02/17/00 2,000,000 TX Harris Co MUD#304 Unlimited Tax Bonds Series 2000 C FA 1192. 02/17/00 115,000,000 IL Chicago City-Illinois Second Lien Wstwtr Trans Bonds Series 2000 N CO-MGR 1193. 02/16/00 235,000 NE Nelson-Nebraska Water Bonds N SOLE 1194. 02/15/00 4,310,000 TX Harris Cc MUD#367 Unlimited Tax Bonds Series 2000 C CO-MGR 1195. 02/10/00 9,535,000 TX Cedar Park-Texas Utility Sys Revenue Bonds Series 2000 N SOLE 1196. 02/08/00 2,700,000 TX Burney Road MUD Unlimited Tax Bonds Series 2000 C FA 1197. 02/07/00 5,975,000 TX Hams Co MUD#368 Unlimited Tax Bonds Series 2000 C SOLE 1198. 02/02/00 10,975,000 TX Waxahachie-Texas Comb Tax&Rev Certs of Oblig Series 2000 C CO-MGR 1199. 01/27/00 3,000,000 AZ Chandler-Arizona Water&Sewer Revenue Bonds Series 2000 C CO-MGR 1200. 01/24/00 1,940,000 TX Harris Co MUD#355 Unlimited Tax Bonds Series 2000 C LEAD 1201. 01/20/00 2,580,000 TX Chimney Hill MUD Wtr&Swr Sys Tax&Rev Bonds Series 2000 C LEAD 1202. 01/19/00 435,000 TX Cinco MUD#12 Unlimited Tax Bonds Series 2000 C SOLE 1201 01/18/00 78,890,000 FL Jacksonville Electric Authority Water and Sewer Sys Rev Bonds 2000 Series A N CO-MGR 1204. 01/06/00 8,728,000 NJ North Arlington-New Jersey General&Wtr Improvement Bonds Series of 2000 C CO-MGR 1205. 01/05/00 2,050,000 ME Yarmouth Water Dt Revenue Bonds 2000 Series C CO-MGR 33,037,671,000 Page 19 of 19 Appendix II — Resumes FINANCING:TEAM RESUMES MR.RICHARB H.CLARK,DIRECTOR Co-Project header Mr. Clark joined Sutro & Co. Incorporated, the predecessor of RBC Capital Markets., in May 1996 and is now a senior banker in the Los Angeles Public Finance Department of RBC Capital Markets. Mr. Clark has been active in California municipal finance since 1982. Mr. Clark has served as financial advisor or underwriter for the financing of general infrastructure, redevelopment, water and wastewater, solid waste, public power, assessment districts and Mello-Roos districts. Mr. Clark has been involved in financings for issuers including the Bonneville Power Administration, San Joaquin County, the California State Public Works Board, the San Elijo Joint Powers Authority, the San Dieguito Water District, the cities of Ontario, Hayward, Fullerton, Encinitas, El Cerrito and Fontana, and the redevelopment agencies of the cities of Poway, Hayward, Fontana, El Cerrito, Fullerton and Ontario, among others. In his role as financial advisor to the Bonneville Power Administration, Mr. Clark assisted in the structuring and sale of over $8.6 billion in financings for the Washington Public Power Supply System, the City of Tacoma, CARES (Conservation and Renewable Energy Resources), Northern Wasco Public Utilities District and the Lewis County Public Utilities District No. 1. His water utility experience includes financings for the water enterprise funds of the cities of Long Beach, Fullerton, Ontario,Benicia,Vallejo and Woodland as well as special districts throughout the State of California. Prior to joining Sutro, Mr. Clark was a Principal in the Public Finance Department of Alex. Brown& Sons, Incorporated from 1992 to 1996. He was previously associated with Security Pacific Merchant Bank from 1979 to 1992 where he was a Managing Director in the Public Finance Department. Mr. Clark received a BA Degree from Dartmouth College in 1975 and an MBA from the Stanford Business School in 1979. Mr. Clark has Series 7, 52, 53 and 64 Licenses. MR.TERRY MAAS,DIRECTOR Co-Project Leader Mr. Maas has over 28 years of experience in structuring and underwriting a complete range of municipal debt instruments. Mr. Maas has overseen 200 transactions in excess of $4.0 billion in municipal debt securities in his career as an investment banker. He has been serving Nevada, California and Arizona public agencies on their municipal financings since 1974. Mr. Maas specializes in certificates of participation, assessment,tax allocation, general obligation and Community Facilities District/Mello-Roos debt, leases, airports, water and sewer revenue bonds and electric utility debt. The majority of Mr. Maas's client base includes cities, redevelopment agencies and special districts including the Overton Power District No. 5, NV; Lincoln County Power District No.1, NV; The Landview Company, NV; Valley Electric, Pahrump, NV; the Cities of San Buenaventura (Ventura), Garden Grove, Scottsdale AZ, Nogales AZ, San Diego, Oakland and Inglewood. Some of the redevelopment agencies and special districts served by Mr. Maas are: Burbank Airport Authority, Garden Grove Redevelopment Agency, Glendale AZ Industrial Development Authority, Phoenix Industrial Development Authority, The American Graduate School of International Management (Thunderbird),Arizona State University and the University of Arizona, Mr. Maas has a BA degree from the University of California, Los Angeles, California and an MBA and MPA degrees from California State University. Mr.Maas has Series 7 and 64 Licenses. RANDY MERRITT, LICE PRE.SMENT Support Banker Mr. Randy Merritt,Vice President joined RBC Capital Markets'Los Angeles Public Finance office in 2000. He has over 5 years of general municipal finance experience that includes over 55 financings with a par amount in excess of$2.1 billion. Mr. Merritt experience includes structuring tax-exempt and taxable certificates of participation, general obligation bonds, tax allocation bonds, revenue bonds,and tax and revenue anticipation notes. His water and wastewater experience includes financings for the water enterprise funds of the cities of Garden Grove, San Buenaventura, Fullerton, and Ontario, as well as, special districts throughout the State of California. In addition, Mr. Merritt helped structure two bond financings for the San Diego County Water Authority. Prior to embarking upon a career in investment banking, Mr. Merritt was employed by a leading litigation consulting firm. Mr. Merritt earned his BS Degree in Business from California Polytechnic State University, San Luis Obispo. Mr.Merritt has a Series 7 License. Guy MURDOCK,MANAGING DIRECTOR Manager of Fixed Income Sales& Trading Guy Murdock joined RBC Capital Markets in 1975. Mr. Murdock is the Manager of the firm's Fixed Income Banking Underwriting Department. In addition to managing the firm's underwriting operations, is responsible for underwriting regional and national municipal credits, both for new issues and the secondary market. He is also responsible for underwriting new issue taxable municipals. He was instrumental in moving the firm up to major bracket status in underwriting, including becoming one of the top underwriters of bank-qualified issues in the nation. Mr. Murdock has served as a Director of the Municipal Bond Club of Chicago and is a graduate of the University of Michigan. PETER AuZFR8,DIRECTOR C,'alifornia t,"nderwriter Peter Auzers recently accepted an offer to join RBC Capital Markets as the firm's California underwriter. Mr. Auzers is the lead underwriter for all California new issue financings. For the last 14 years, Mr. Auzers worked for Fidelity Capital Markets Service, a subsidiary of Fidelity Investments, as a Senior Vice President and head West Coast underwriter. Mr. Auzers has over 25 years of experience in municipal trading, sales and underwriting. STEVEN BERNSTEIN,ASSOCIATE Quantitath,e Support Mr. Bernstein joined RBC Capital Markets in September 2003. He is responsible for day-to-day banking support preparing comparative and qualitative analyses, and providing analytical support in structuring tax-exempt and taxable municipal offerings. He is experienced in all stages of bond financings; working on behalf of cities, counties, special districts, redevelopment agencies, and port authorities on a variety of financings including private placements, certificates of participation, general obligation bonds,revenue bonds, and tax and revenue anticipation notes. Prior to joining RBC, Mr. Bernstein worked for CDR Financial Products, Inc. and has over five years of experience working in the financial services industry. Mr. Bernstein earned his Bachelor of Science in Finance from Yeshiva University in New York. Appendix III — Detailed Bond Sizing Reports Option No. 1 Layering of Debt Service Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 1 -Layering of Debt Service Total Issue Sources And Uses Dated 10/01/2006 1 Delivered 10/01/2006 2006 New Refunding of Issue Money COPS 1996 COPS Summary Sources Of Funds Par Amount of Bonds _.. $19,930,000.00 $7,765,000.00 $27,695,000.00 Reoffering Premium 272 772 45 374 215.45 646,987.90 ............. ._ _..,.. ...... ...... .. ........ _ .. .. ....._... ... _--- Transfers from Prior Issue Debt Service Funds 552,114.02 552 114.02 Transfers from Prior Issue DSR Funds 808,470.00 808,470.00 Total Sources $20,202,772.45 _ _$. ,4 ,799.47 S29,702,571.92 _. -1-1-1—.1-1-1-_ . ..._._... . __._._.. ......... Uses Of Funds Total Underwriter's Discount 0.555% 110,611.50 43,095.75 153,707.25 Costs of Issuance 107,943.67 42,056.33 150,0---.. Gross Bond Insurance Premium 170,740.43 50,162.89 220,903.32 Deposit to Debt Service Reserve Fund(DSRF) 1,450,460.71 565,119.29 2,015,580.00 ........ .._.... ......... _...._... .__...... _ . ._......... ........_. ......_._._. .. ._....._.. Deposit to Project Construction Fund 18,359,272.00 18,359,272.00 Deposit to Current Refunding Fund 8,798,729.92 8,798,729.92 _.._ Round_m Amount 3 744.14 635.29 4,379 43 -- _.— _ �— .._.____._. __ _ _.. Total Uses $20,202,772.45 $9,499,799.47 $29,702,571.92 2006 COPs w/Refunding of I Issue Summary 1 814/2006 1 12:17 PM RBC Capital Publicr Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. I - Layering of Debt Service Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I 11/15/2006 - 11/15/2007 545,000.00 4.500% 1,466,245.05 2,011,245.05 11/15/2008 725,000.00 4.500% 1,282,030.00 2,007,030.00 11/15/2009 760,000.00 4.500% 1,249,405.00 2,009,405.00 11/15/2010 795,000.00 4 500/0 1,215,205.00 2,010,205.00 _._._.. ........ _........... .. ........... a .. .. 1 I/15/2011 825,000.00 4.500% 1,179,430.00 2,004,430.00 11/15/2012 865,000.00 4.500% 1,142,305.00 2,007,305.00 11/15/2013 910,000.00 4.500% 1,103,380.00 2,013,380.00 11/15/2014 940,000.00 4.500% 1,062,430.00 2,002,430.00 _11/15/201_5_ 990,000.00 4.500% 1,020,130.00 ,_.2,010,130.00 11/15/2016 1,040,000.00 5.000% 975,580.00 2,015,580.00 11/15/2017 1,085,000.00 5.000% 923,580.00 2,008,580.00 11/15/2018 1,135,000.00 5.000% 869,330.00 2,004,330.00 11/15/2019 1,200,000.00 5.000% 812,580.00 2,012,580.00 11/15/2020 1,255,000.00 5.000% 752,580.00 2,007,580.00 11/15/2021 1,300,000.00 5.000% 689,830.00 1,989,830.00 11/15/2022 640,000.00 4.375% 624,830.00 1,264,830+00 11/15/2023 670,000.00 4.400% 596,830.00 1,266,830.00 11/15/2024 700,000.00 4.400% 567,350.00 1,267,350.00 11/15/2025 730,000.00 4.500/0 536,550.00 _... 1,266,550.00 . .......... o 11/15/2026 760,000.00 4.500% 503,700.00 1,263,700.00 11/15/2027 795,000.00 4.500% 469,500.00 1,264,500.00 11/15/2028 830,000.00 4.500% 433,725.00 1,263,725.00 11/15/2029 870,000.00 4.500% 396,375.00 1,266,375.00 11/15/2030 905,000.00 4.500% 357,225.00 1,262,225.00 11/15/2031 950,000.00 4.500% 316,500.00 1,266,500.00 11/15/2032 990,000.00 5.000% 273,750.00 1,263,750.00 11/15/2033 1,040,000.00 5.000% 224,250.00 1,264,250.00 11/15/2034 1,095,000.00 5.000% 172,250.00 1,267,250.00 11/15/2035 1,145,000.00 5.000% ......,... ,__.,__._. .. 117,500.00 1 262,500.00 11/15/2036 1,205,000.00 5.000% 60,250.00 1,265,250.00 Total $27,695,000.00 - $21,394,625.05 $49,089,625.05 2006 COPS w/Refunding of 1 Issue Summary 1 8/4/2006 1 12:17 PM RBC Capital Markets Public '" 7 Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. I -Layering of Debt Service Debt Service Schedule Part 2 of 2 Yield Statistics $449,149.94 Bond Year Dollars 16.218 Years _........._................. Average Life 4.7633592% Average Coupon....... ...._..... . ........_.......... 4.6535338% Net Interest Cost(NIC) _._....... _.. .. .._......._.. 4.5836326% True Interest Cost TIC 4.5203578% Bond Yield for Arbitrage Purposes .............. .................................. . . 4.7098946% All Inclusive Cost Al IRS Form 8038 4.5453410% Net Interest Cost .. ._.................. . .......... .. 16.105 Years Wei ted Avera a Maturity 2006 COPS w/Refunding of I Issue Summary 1 8f 412006 1 12:17 PM 7� RBC Capital Markets .r• Public Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. I -Layering of Debt Service Net Debt Service Schedule Date Principal Coupon Interest Total P+I DSR Net New D/S 11/15/2006 - - - (11,042.00) (11,042.00) 11/15/2007 545,000.00 4.500% 1,466,245.05 2,011,245.05 (91,111.44) 1,920,133.61 11/15/2008 725,000.00 4.500% 1,282,030.00 2,007,030.00 (91,111.44) 1,915,918.56 11/15/2009 760,000.00 4.500% 1,249,405.00 2,009,405.00 (91,111.44) 1,918,293.56 11/15/2010 795,000.00 4.500% 1,215,205.00 2,010,205.00 (91 111 44) 1,919,093.56 11/15/2011 825,000.00 4.500% 1,179,430.00 2,004,430.00 (91,111.44) 1,913,318.56 11/15/2012 865,000.00 4.500% 1,142,305.00 2,007,305.00 (91,111.44) 1,916,193.56 11/15/2013 910,000.00 4.500% 1,103,380.00 2,013,380.00 (91,111.44) 1,922,268.56 11/15/2014 940,000.00 4.500% 1,062,430.00 2,002,430.00 (91,111.44) 1,911,318.56 11/15/2015 990,000.00 4.500% 1,020,130.00 2,010,130.00 �9] 111.44) 1,919,018.56 11/15/2016 1,040,000.00 5.000% 975,580.00 2,015,580.00 (91,111.44) 1,924,468.56 11/15/2017 1,085,000.00 5.000% 923,580.00 2,008,580.00 (91,111.44) 1,917,468.56 11/15/2018 1,135,000.00 5.000% 869,330.00 2,004,330.00 (91,111.44) 1,913,218.56 11/15/2019 1,200,000.00 5.000% 812,580.00 2,012,580.00 (91,111.44) 1,921,468.56 11/15/2020 1,255,000.00 5.000% _752,580.00 2,007,580.00 91,111.44 1,916,468.56 _.. _ ___( _ ___.__. ___._ _._ 11/15/2021 1,300,000.00 5.000% 689,830.00 1,989,830.00 (656,230.73) 1,333,599.27 11/15/2022 640,000.00 4.375% 624,830.00 1,264,830.00 (65,566.02) 1,199,263.98 11/15/2023 670,000.00 4.400% 596,830.00 1,266,830.00 (65,566.02) 1,201,263.98 11/15/2024 700,000.00 4.400% 567,350.00 1,267,350.00 (65,566.02) 1,201,783.98 11/15/2025 730 000.00 4.500% 536 550.00 1,266,550.00 (65 566.02) 1200,983.98 .......... ..........._. 11/15/2026 760,000.00 4.500% 503,700.00 1,263,700.00 (65,566.02) 1,198,133.98 11/15/2027 795,000.00 4.500% 469,500.00 1,264,500.00 (65,566.02) 1,198,933.98 11/15/2028 830,000.00 4.500% 433,725.00 1,263,725.00 (65,566.02) 1,199,158.98 11/15/2029 870,000.00 4.500% 396,375.00 1,266,375.00 (65,566.02) 1,200,808.98 11/15/2030 905,000.00 4.500% 357,225.00 1,262,225.00 65,566.02 1,196,658.98 11/15/2031 950,000.00 4.500% 316,500.00 1,266,500.00 (65,566.02) 1,200,933.98 11/15/2032 990,000.00 5.000% 273,750.00 1,263,750.00 (65,566.02) 1,198,183.98 11/15/2033 1,040,000+00 5.000% 224,250.00 1,264,250.00 (65,566.02) 1,198,683.98 11/15/2034 1,095,000.00 5.000% 172,250.00 1,267,250.00 (65,566.02) 1,201,683.98 11/15/2035 1,145 000.00 5 000% 117 500.00 1,262,500.00 (65 566 02) 1,196,933.98 ........_. 1-- _._,... ....... ....._... 11/15/2036 1,205,000.00 5.000% 60,250.00 1,265,250.00 (1,516,026.73) (250,776.73) Total $27,695,000.00 - $21,394,625.05 $499089,625.05 (4,376,783.90) $44,712,841.15 2006 COPS w/Refunding of I Issue Summary 1 8/4/2006 1 12:17 PM s � r PublicC Capital Markets Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. I -Layering of Debt Service Pricing Summary Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 11/15/2007 Serial Coupon 4.500% 3.550% 545,000.00 101.032% 550,624.40 11/15/2008 Serial Coupon 4.500% 3.600% 725,000.00 101.819% 738,187.75 11/15/2009 Serial Coupon 4.500% 3.630% 760,000.00 102.542% 779,319.20 11/15/2010 Serial Coupon 4.500% 3.660% 795,000.00 103.183% 820,304.85 11_/_15/201_1 Serial Coupon 4.500% _ 3.710% 825,000.00 103.650% 855,112.50 11/15/2012 Serial Coupon 4.500% 3.750% 865,000.00 104,065% 900,162.25 11/15/2013 Serial Coupon 4.500% 3.830% 910,000.00 104.138% 947,655.80 11/15/2014 Serial Coupon 4.500% 3.920% 940,000.00 103.997% 977,571.80 11/15/2015 Serial Coupon 4.500% 4.000% 990,000.00 103.786% 1,027,481.40 11/15/2016 Serial Coulon 5.000% 4.050% 1,04Q000.00_ 107.820% ],121,328.00 11/15/2017 Serial Coupon 5.000% 4.110% 1,085,000.00 107.304% c 1,164,248.40 11/15/2018 Serial Coupon 5.000% 4.180% 1,135,000.00 106.706% c 1,211,113.10 11/15/2019 Serial Coupon 5.000% 4.230% 1,200,000.00 106.282% c 1,275,384.00 11/15/2020 Serial Coupon 5.000% 4,290% 1,255,000.00 105.775% c 1,327,476.25 11/15/2021 Serial Coupon 5.000% 4.340% 1.300 000.00 105.355% c 1,369,615.00 11/15/2022 Serial Coupon 4.375% 4.500% 640,000.00 98.573% 630,867.20 11/15/2023 Serial Coupon 4.400% 4.540% 670,000.00 98.341% 658,884.70 11/15/2024 Serial Coupon 4.400% 4.580% 700,000.00 97.795% 684,565.00 11/15/2031 Term 1 Coupon 4.500% 4.720% 5,840,000.00 96.777% 5,651,776.80 11/15/2036 Term 2 Coupon _ 5.000% .4.600% ._,.5,475 000.00 _ .202/o 103 _ c 5,650�309.50 _.. ° Total - - $27,695,000.00 - $28,341,987.90 Bid Information Par Amount of Bonds $27 695 000.00 ...._._ _ ..__......._ ......_.... . ...._......__ . 6,987.90 Reofferin Premium or Discount 64 Gross Production $28 341 987.90 .......... Total Underwriter's Discount (0.555%) $(153 707.25) .............. _..... _..... 28,188,280.65 Bid 101.781% Total Purchase Price $28,188 280.65 Bond Year Dollars _ _ __. -._ _� __ $449 149.94 16.218 Years Average Life _ 4.7633592% 4.6535338% Net Interest Cost(NIC _ ._.... __..._ .____.. ._ ___.___________..____r_.____r___ __.�__________�__.____�_________�________________________�__ .4.5836326% True Interest Cost TIC 2006 COPS w/Refunding of I Issue Summary 1 8/4/2006 1 12:17 PM RBC Capital Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. I -Layering of Debt Service Proof of Reserve Fund Requirement Part 1 of 2 Date Principal Interest TOTAL P+l 11/15/2006 - 11/15/2007 545,000.00 1,466,245.05 2,011,245.05 11/15/2008 725,000.00 1,282,030.00 2,007,030.00 11/15/2009 760,000.00 1,249,405.00 2,009,405.00 11/15/2010 795,000.00 1,215 205 00 2,010,205.00 ................... ............... ..................... ................ ....................................... .............. .................................... .......... 11/15/2011 825,000.00 1,179,430.00 2,004,430.00 11/15/2012 865,000.00 1,142,305.00 2,007,305.00 11/15/2013 910,000.00 1,103,380.00 2,013,380.00 11/15/2014 940,000.00 1,062,430.00 2,002,430.00 11/15/2015 990,000.00 1 20,130.00 2,010,130.00 11/15/2016 1,040,000.00 975,580.00 2,015,580.00 11/15/2017 1,085,000.00 923,580.00 2,008,580.00 11/15/2018 1,135,000.00 869,330.00 2,004,330.00 11/15/2019 1,200,000.00 812,580.00 2,012,580.00 11/15/2020 1,255,000.00 752,580.00 2,007,580.00 11/15/2021 1,300,000.00 689,830+00 1,989,830.00 11/15/2022 640,000.00 624,830.00 1,264,830.00 11/15/2023 670,000.00 596,830.00 1,266,830.00 11/15/2024 700,000.00 567,350.00 1,267,350.00 ............... ...................................--73-0,01-0.9,99 ......111......................................................... 536 550 00 1,266,550.00 11/15/2026 760,000.00 503,700.00 1,263,700.00 11/15/2027 795,000.00 469,500.00 1,264,500.00 11/15/2028 830,000.00 433,725.00 1,263,725.00 11/15/2029 870,000.00 396,375.00 1,266,375.00 11/15/2030 905'000.00 357,225.00 1,262,225.00 11/15/2031 950,000.00 316,500.00 1,266,500.00 11/15/2032 990,000.00 273,750.00 1,263,750.00 11/15/2033 1,040,000.00 224,250.00 1,264,250.00 11/15/2034 1,095,000.00 172,250.00 1,267,250.00 11/15/2035 1,145,000.00 117,500.00 1,262,500.00 -...........-.1................................................................................-.......... ....................................... .................................................... ....................... ........................- 11/15/2036 1,205,000.00 60,250.00 1,265,250.00 Total $27,695,000.00 $21,394,625.05 $49,089,625.05 2006 COPS w/Refunding of I Issue Summary 1 81 4J2006 1 12:17 PM RBC Capital Markets Public Finance Page 6 Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 1 -Layering of Debt Service Proof of Reserve Fund Requirement Part 2 of 2 PROOF OF RESERVE FUND MAXIMUM PERIODIC DEBT SERVICE Omit First Period? Yes 100%of the Maximum Periodic Debt Service 2,015,580.00 ......._--- .. ..._...- .._ ....... .. ._._....... .......... ...... AVERAGE PERIODIC DEBT SERVICE Total PA 49 089 625.05 Bond Year (D s elivery Date) 30.12 125%of the Avera a Periodic Debt Service 2,037,101.74 PERCENT OF PAR 10%of Par 2 769,500.00 ....,..._.... _......... ._.. ........... ......._..._.... ......_._.... ......... _...._.... ._._.. ........_ .......... RESERVE REQUIREMENT Computed Requirement 2,015,580.00 Proofs Requirement 2,015,580.00 2006 COPS w/Refunding of I Issue Summary 1 8/412006 1 12:17 PM r PublicC Capital Markets Certificates of Participation (Water System Improvement Projects) New Money Portion Sources & Uses Dated 10101/2006 1 Delivered 1010112006 Sources Of Funds Par Amount of Bonds $19,930,000.00 Reofferiny�Premium 272,772.45 Total Sources. Uses Of Funds Total Underwriter's Discount 0.555% 110,611.50 Costs of Issuance 107,943. 67 — . Gross Bond Insurance Premium(45 0 bp) . ... ........... ... .. ...... . .. .- . __.... 17 , _.... ___ ..,... 71 Deposit to Debt Service Reserve Fund DSRF _ �. _ _ _ 1 450,460. _(._ 8, Deposit to Project Construction Fund 18 359 272.00 __.. 3.744.14 Rounding Amount Total Uses $20 202 772.45 2006 COPS w/Refunding of 1 2006 New Money COPs 1 81 412006 1 12:17 PM RBC Capital Certificates of Participation (Water System Improvement Projects) New Money Portion Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I 11/15/2006 - - 1 1/15/2007 210,000.00 4.500% 1,052,986.72 1,262,986.72 11/15/2008 335,000.00 4.500% 928,855.00 1,263,855.00 11/15/2009 350,000.00 4.500% 913,780.00 1,263,780.00 11/15/2010 _ 365 000.00 4.500% 898,030 00 1 263 030.00 ....... . ...__........ .. ........._ _.......... ... 11/15/2011 385,000.00 4.500% 881,605.00 1,266,605.00 11/15/2012 400,000.00 4.500% 864,280.00 1,264,280.00 11/15/2013 420,000.00 4.500% 846,280.00 1,266,280.00 11/15/2014 435,000.00 4.500% 827,380.00 1,262,380.00 11/15/2015 455,000.00 4.50_0% 807,805.00 _ 1,262,805.000 11/15/2016 480,000.00 5.000% _ 787,330.00 1,267,330.00 11/15/2017 500,000.00 5.000% 763,330.00 1,263,330.00 l 1/15/2018 525,000.00 5.000% 738,330.00 1,263,330.00 11/15/2019 555,000.00 5.000% 712,080.00 1,267,080.00 11/15/2020 580,000.00 5.000% _ 684,330.00 1,264,330.00 �11/15/2021 � 610,000.00 5.000% 655,330.00 1,265,330.00 11/15/2022 640,000.00 4.375% 624,830.00 1,264,830.00 11/15/2023 670,000.00 4.400% 596,830.00 1,266,830.00 11/15/2024 700,000.00 4.400% 567,350.00 1,267,350.00 ]1/15/2025 _730 000.00 _...... 4 500% ,. . ...,__.,_.,. 536 550 00 1,266,550.00 .... _.._.. 11/15/2026 760,000.00 4.500% 503,700 00 1,263,700.00 11/15/2027 795,000.00 4.500% 469,500.00 1,264,500.00 11/15/2028 830,000.00 4.500% 433,725.00 1,263,725.00 11/15/2029 870,000.00 4.500% 396,375.00 1,266,375.00 11/15/2030 905,000.00 4.500% 357,225.00 1,262 225.00 11/15/2031 950,000.00 4.500% 316,500.00 1,266,500.00 11/15/2032 990,000.00 5.000% 273,750.00 1,263,750.00 11/15/2033 1,040,000.00 5.000% 224,250.00 1,264,250.00 11/15/2034 1,095,000.00 5.000% 172,250.00 1,267,250.00 11/15/2035 1,145,000.00 5 000% 117 500 00 1 262 5 .0.00 _...... __........_ ......... ......... 11/15/2036 1,205,000.00 5.000% 60,250.00 1,265,250.00 Total $19,930,000.00 - $18,012,316.72 $37,942,316.72 2006 COPS w/Refunding of 1 2006 New Money COPS 1 81412006 1 12:17 PM RBC CapitalMarkets Public Certificates of Participation (Water System Improvement Projects) New Money Portion Debt Service Schedule Part 2 of 2 Yield Statistics Bond Year Dollars $379,320.89 .. _.. ................ .. ...... ._..,............ .__._...._. .. ........_... Avera e Life 19.033 Years Average Coupon 4 7485697%._ ........................._.._... .. ...................... ..........._. ........ ..._...._..._ ............. Net Interest Cost( C) 4 7058193% True Interest Cost TIC 4.6661936% Bond Yield for Arbitrage_Purposes 4 5203578% .......... ..._..._._.................... _. ...._....._. .._.. ............ ......... ........_... ... .._.._......_... .,...... All Inclusive Cost AIC 4.7846056% IRS form 8838 Net Interest Cost 4.6344452% ......... _............. ...._.... .. .......... ......... ......_._..._._ ........... ....._. Weighted Average Maturity 18.947 Years 2006 COPS w!Refunding of 1 2006 New Money COPS 1 8/4/2006 1 12:17 PM RBC Capital Markets Public1 Certificates of Participation (Water System Improvement Projects) New Money Portion Net Debt Service Schedule Date Principal Coupon Interest Total P+1 DSR Net New D/S 11/15/2006 - - (7,946.09) (7,946.09) 11/15/2007 210,000.00 4.500% 1,052,986.72 1,262,986.72 (65,566.02) 1,197,420.70 11/15/2008 335,000.00 4.500% 928,855.00 1,263,855.00 (65,566.02) 1,198,288.98 11/15/2009 350,000.00 4.500% 913,780.00 1,263,780.00 (65,566.02) 1,198,213.98 11/15/2010 365 000.00 4 500% 898 030.00 1 263,030.00 (65 566.02) ] 197,463.98 I..,....,....,........... ........ ........ 11/15/2011 385,000.00 4.500% 881,605.00 1,266,605.00 (65,566.02) 1,201,038.98 11/15/2012 400,000.00 4.500% 864,280.00 1,264,280.00 (65,566.02) 1,198,713.98 11/15/2013 420,000.00 4.500% 846,280.00 1,266,280.00 (65,566.02) 1,200,713.98 11/15/2014 435,000.00 4.500% 827,380.00 1,262,380.00 (65,566.02) 1,196,813.98 11/15/2015 _ 455,000.00 4.500% 807,805.00 1, ,262,80500 65,566.02 1,197,238.98 11/15/2016 480,000.00 5.000% 787,330.00 1,267,330.00 (65,566.02) 1,201,763.98 11/15/2017 500,000.00 5.000% 763,330.00 1,263,330.00 (65,566.02) 1,197,763.98 11/15/2018 525,000.00 5.000% 738,330.00 1,263,330.00 (65,566.02) 1,197,763.98 11/15/2019 555,000.00 5.000% 712,080.00 1,267,080.00 (65,566.02) 1,201,513.98 11/15/2020 580,000.00 5.000% 684,330.00 1,264,330.00 65,566.02 1,198,763.98 11/15/2021 610,000.00 5.000% 655,330.00 1,265,330.00 (65,566.02) 1,199,763.98 11/15/2022 640,000.00 4.375% 624,830.00 1,264,830.00 (65,566.02) 1,199,263.98 11/15/2023 670,000.00 4.400% 596,830.00 1,266,830.00 (65,566.02) 1,201,263.98 11/15/2024 700,000.00 4.400% 567,350.00 1,267,350.00 (65,566.02) 1,201,783.98 11/15/2025 730,000.00 4 500% 536 550.00 1,266,550 00 (65,566.02) 1 200,983.98 11/15/2026 760,000.00 4.500% 503,700.00 1,263,700.00 (65,566.02) 1,198,133.98 11/15/2027 795,000.00 4.500% 469,500.00 1,264,500.00 (65,566.02) 1,198,933.98 11/15/2028 830,000.00 4.500% 433,725.00 1,263,725.00 (65,566.02) 1,198,158.98 11/15/2029 870,000.00 4.500% 396,375.00 1,266,375.00 (65,566.02) 1,200,808.98 11/15/2030 905,000.00 4.500% 357,225.00 1,262,225.00 65,566.02 1,196,658.98 11/15/2031 950,000.00 4.500% 316,500.00 1,266,500.00 (65,566.02) 1,200,933.98 11/15/2032 990,000.00 5.000% 273,750.00 1,263,750.00 (65,566.02) 1,198,183.98 11/15/2033 1,040,000.00 5.000% 224,250.00 1,264,250.00 (65,566.02) 1,198,683.98 11/15/2034 1,095,000.00 5.000% 172,250.00 1,267,250.00 (65,566.02) 1,201,683.98 11/15/2035 1,145 000.00 5 000%0 117 500.00 1,262,500 00 (65 566 02) 1 196,933.98 ........._.._. ........... _.... ......... ......I.., _... 11/15/2036 1,205,000.00 5.000% 60,250.00 1,265,250.00 (1,516,026.73) (250,776.73) Total $19,930,000.00 - $18,012,316.72 $37,942,316.72 (3,425,387.40) $34,516,929.32 2006 COPs w/Refunding of 1 2006 New Money COPS 1 8/4/2006 1 12:17 PM CapitalRBC Public Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Sources & Uses Dated 10101/2006 1 Delivered 10/01/2006 Sources Of Funds Paz Amount of Bonds $7 765,000.00 W..._..___ __ .._ Reoffering Premium _ _ 374,215.45 _ �.._ �._ _ _ ____._.. _-___.__�.._.__. _.________.__ __..__.._.___-__.--- Transfers from Prior Issue Debt Service Funds 552,114.02 Transfers from Prior Issue DSR Funds 808,470.00 Total Sources_. Uses Of Funds Total Underwriter's Discount (0.5550 ) 43,095.75 _.. Costs of Issuance 42,056.33 Gross Bond Insurance Premium(45.0 bp) 50 162.89 _.._. _ ....._........ De osrt to Debt Servicc Reserve Fund DSRF 565.119.29 Deposit to Current Refunding Fund 8 798 729.92 ........ _.... _...._. _......... Roundin Amount 635.29 Total Uses $9,499,799.47 2006 COPS w/Refunding of I Refunding of 1996 COPS 1 8/4/2006 1 12:17 PM w Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Debt Service Schedule Date Principal Coupon Interest Total P+I 11/15/2006 - - 11/15/2007 335,000.00 4.500% 413,258.33 748,258.33 11/15/2008 390,000.00 4.500% 353,175.00 743,175.00 11/15/2009 410,000.00 4.500% 335,625.00 745,625.00 11/15/2010 430,000.00 4.500% 317,175 00. 747 175.00 _._..... o 11/15/2011 440 000.00 4.500% 297,825.00 737,825.00 11/15/2012 465,000.00 4.500% 278,025.00 743,025.00 11/15/2013 490,000.00 4.500% 257,100.00 747,100.00 11/15/2014 505,000.00 4.500% 235,050.00 740,050.00 11/15/2015 535,000.00 _4.500% _. _ _ 212,325.00 747z325500_ 11/15/2016 � 560,000.00 5.000%0 188,250.00 748,250.00 11/15/2017 585,000.00 5.000% 160,250.00 745,250.00 11/15/2018 610,000.00 5.000% 131,000.00 741,000.00 11/15/2019 645,000.00 5.000% 100,500.00 745,500.00 11/15/2020 675,000.00 5.000% 68,250.00 _ 743,250.00 11/15/2021 690,000.00 5.000% 34,500.00 724,500.00 Total $7,765,000.00 - $3,382,308.33 $11,147,308.33 Yield Statistics Bond Year Dollars _ _ _ _ $69,829.06 Average Life 8.993 Years _____L—_—_ - _4.8436977% Net Interest Cost(NICE 4.369511511 % True Interest Cost TIC 4.2329339% Bond Yield for Arbitrage Purposes 4 5203578% All Inclusive Cost AIC 4.3948744% IRS Form 8038 4 0824560% Net Interest Cost Wei hted Average Maturi 9.053 Years 2006 COPs w/Refunding of I Refunding of 1996 COPs 1 814/2006 1 12:17 PM r r Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Debt Service Comparison Date Total P+I DSR Net New DIS Old Net D/S Savings 11/15/2006 - (3,095.91) (3,095.91) - 3,095.91 11/15/2007 748,258.33 (25,545.42) 722,712.91 755,853.04 33,140.13 11/15/2008 743,175.00 (25,545.42) 717,629.58 752,168.04 34,538.46 11/15/2009 745,625.00 (25,545.42) 720,079.58 752,340.54 32,260.96 11/15/20t0 747,175.00 (25,545.42) 721629.58 75607804 34,448.46 . ......... . ...... I. 11/15/2011. . 737,825.00 (25,545.42) 712,279.58 748,288.04 36,008.46 11/15/2012 743,025.00 (25,545.42) 717,479.58 754,480.54 37,000.96 11/15/2013 747,100.00 (25,545.42) 721,554.58 753,830.54 32,275.96 11/15/2014 740,050.00 (25,545.42) 714,504.58 751,330.54 36,825.96 11/15/2015 747,325.00 25,545.42 721,779.58 757,455.54 35,675.96 11/15/2016 748,250.00 (25,545.42) 722,704.58 756,655.54 33,950.96 11/15/2017 745,250.00 (25,545.42) 719,704.58 754,205.54 34,500.96 11/15/2018 741,000.00 (25,545.42) 715,454.58 750,725.54 35,270.96 11/15/2019 745,500.00 (25,545.42) 719,954.58 755,625.54 35,670.96 11/15/2020 743,250.00 2�5,545.42Z mm 717,704.58 _753,365.54_ _ _ 35,660.96 11/15/2021 724,500.00 (590,664.71) 133,835.29 (74,254.46) (208,089.75) Total $11,147,308.33 (951,396.50) $10,195,911.83 $10,478,148.10 $282,236.27 PV Analysis Summary(Net to Net) Gross PV Debt Service Savings • 424,539.1 Effects of changes m DSR investments _ _ __ �. .. �_�._. — ---- -- -�Net PV Cashflow Savis�a Transfers from Prior Issue Debt Service Fund 552.114.02) Contingency or Rounding Amount 635.29 ...... ......... ..._..... ....._. Net Present Value Benefit $248,333.37 Net PV Benefit/ $8,465,000 Refunded Principal 2.934% Net PV Benefit/ $7 765,000 Refunding Principal 3.198% Refunding Bond Information Refunding Dated Date 10/01/2006 . ......_. .. ................... ................................................... ......... Re"Delive Date 10/01/2006 2006 COPS w/Refunding of I Refunding of 1996 COPs 1 8/412006 1 12:17 PM RBC Capital Public _Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Net Debt Service Schedule Date Principal Coupon Interest Total P+I DSR Net New DIS 11/15/2006 - - - - (3,095.91) (3,095.91) 11/15/2007 335,000.00 4.500% 413,258.33 748,258.33 (25,545.42) 722,712.91 11/15/2008 390,000.00 4.500% 353,175.00 743,175.00 (25,545.42) 717,629.58 11/15/2009 410.000.00 4.500% 335,625.00 745,625.00 (25,545.42) 720,079.58 11/15/2010 430,000.00 4.500% 317,175.00 747 175 00 (25,545 42) 721 629.58 ......__. _.._.... ......... __ ... ..._...._ 11/15/2011 440,000.00 4.500% 297,825.00 737,825.00 (25,545.42) 712,279.58 11/15/2012 465,000.00 4.500% 278,025.00 743,025.00 (25,545.42) 717,479.58 11/15/2013 490,000.00 4.500% 257,100.00 747,100.00 (25,545.42) 721,554.58 11/15/2014 505,000.00 4.500% 235,050.00 740,050.00 (25,545.42) 714,504.58 11/15/2015 535,000.00 4.500% 212,325.00 747,325.00 (25,545.42) 721,779.58 11/15/2016 560,000.00 5.000% 188,250.00 748,250.00 (25,545.42) 722,704.58 11/15/2017 585,000.00 5.000% 160,250.00 745,250.00 (25,545.42) 719,704.58 11/15/2018 610,000.00 5.000% 131,000.00 741,000.00 (25,545.42) 715,454.58 11/15/2019 645,000.00 5.000% 100,500.00 745,500.00 (25,545.42) 719,954.58 11/15/2020 675,000.00 5.000% 68,250.00 743,250.00 (251545.4 _ 717,704.58 11/15/2021 690,000.00 5.000% 34,500.00 724,500.00 (590,664.71) 133,835.29 Total $7,765,000.00 - $3,382,308.33 $11,147,308.33 (951,396.50) $10,195,911.83 2006 COPs w/Refunding of I Refunding of 1996 COPS 1 8/4/2006 1 12:17 PM RBC CapitalMarkets Public Finance Page 15 Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Current Refunding Escrow Cash Date Principal Rate Interest Receipts Disbursements Balance 11/15/2006 8,798,729.00 5.180% 56,191.33 8,854,921.25 8,854,921.25 Total $8,798,729.00 - $56,191.33 S8,854,921.25 $89854,921.25 Investment Parameters Investment Model[PV GIC,or Securities] Securities _._._. Unrestricted Default investment Cash Dosit Cost of Investments Purchased with Bond Proceeds _ _ __ 8,798,729.00 Total Cost of Investments _ —. $8,798,72992 Target Cost of Investments at bond yield ,__. __ __ Actual ositive or ne ative arbitra a 7,945.52 _ __Y Yield to Receipt 5.2769561% Yield for Arbitra e mm oses 4.5203578% State and Local Government Series SLGS rates for 8/02/2006 2006 COPS w/Refunding of I Refunding of 1996 COPS 1 0/4/2006 1 12:17 PM r Capital Markets Public Finance g` Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPs Derivation Of Target Amount (tL 4.5203578% Present Cumulative Date Cashflow PV Factor Value PV 10/01/2006 1.000000ox 11/15/2006 8,854,921.25 0.9945515x 8,806,675.44 8,806,675.44 Total $8,854,921.25 - $8,806,675.44 Composition Of Initial Deposit Cost of Investments Purchased with Bond Proceeds 8,798,729.00 0.92 Cash Deposit . Tar et_...&.. _ _.. _ $8,80 44 _Cosonv o ....-- 7,945.52 Actual positive or(negative)arbitrage 2006 COPS wl Refunding of I Refunding of 1996 COPS 1 814/2006 1 12:17 PM RBC Capital Public Finance Refunding Certificates of Participation (Water System Improvement Project) SERIES 1996 Total Refunded Debt Service Date Principal Coupon Interest Total P+I 11/15/2006 350,000.00 5.250% 227,621.25 577,621.25 1/15/2007 370,000.00 5.050% 436,867.50 806,867.50 l 1/15/2008 385,000.00 5.150% 418,182.50 803,182.50 l 1/15/2009 405,000.00 5.250% 398,355.00 803,355.00 l 1/15/2010 430,000 00 5.300% 377 092.50 807,092.50 l 1/15/2011 445,000.00 5.350% 354,302.50 799,302.50 11/15/2012 475,000.00 5.400% 330,495.00 805,495.00 l 1/15/2013 500,000.00 5.500% 304,845.00 804,845.00 11/15/2014 525,000.00 5.500% 277,345.00 802,345.00 11/15/2015 560,000.00 5.500% 248,470.00 808,470.00 11/15/2016 590,000.00 5.500% 217,670.00 807,670.00 11/15/2017 620,000.00 5.400% 185,220.00 805,220.00 11/15/2018 650,000.00 5.400% 151,740.00 801,740.00 11/15/2019 690,000.00 5.400% 116,640.00 806,640.00 11/15/2020 725,000.00 5.400% 79,380.00 804,380.00 11/15/2021 745,000.00 5.400% 40,230.00 _ 785,230.00 Total $8,465,000.00 - $4,164,456.25 $12,629,456.25 Yield Statistics Average Life 8.711 Years We jghted Average Matunt Par Basis) 8.711 Years Average Coulon 5.414289l% Refunding Bond Information Refunding Dated Date.......................... 10/01/2006 Refunding Delivery Date 10/01/2006 1996 COPS I SINGLE PURPOSE 1 814/2006 1 12:17 PM • r • Capital Markets Public .• 18 Option No. 2 Wraparound Debt Service Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service - Includes DWR Loan Total Issue Sources And Uses Dated 10/01/2006 1 Delivered 10/01/2006 Refunding of 2006 New Issue 1996 COPs Money COPS Summary Sources Of Funds Par Amount of Bonds $7,680,000.00 $20,215,000.00 $27,895,000.00 Reoffering Premium 418 002.65 418,002.65 .. ...... ..._......._... .......... ....... ...._. . ._._......... _. _._._. ._.. I ....... Transfers from Prior Issue Debt Service Funds 552,114.02 552,I 14.02 Transfers from Prior Issue DSR Funds 808 470 00 808,470.00 Total Sources $9�458,586.67.__ $20,215,000.00 $29,673,586 67....... .... ............ Uses Of Funds Ori final Issue Discount OID - 61,890.40 61,890.40 Total Underwriter's Discount (0.5550 42 624 00 112,193.25 154,817.25 .... ........ .. .._.... __....... _..._. ........._ .... .......... . .... .. ......... .._._....... ........ Costs of Issuance 41,297.72 108,702.28 150,000.00 Gross Bond Insurance Premium ...... ......... .. ._._... ............ .- De osit to Debt Service Reserve Fund DSRF 523,600.07 1,378,199.93 1,901,800.00 Deposit to Project Construction Fund 18,359,272.00 18,359,272.00 Deposit to Current Refunding Fund 8,798,729.92 8,798,729.92 Rounding Amount _ _ 2,497.00 1,024.71 3,521.71 Total Uses $9,458,586.67 $20,215,000.00 $29 673 586 67 2006 COPS wf Refunding CO I Issue Summary 1 8/4/2006 1 12:20 PM r r Capital Public g Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service - Includes DWR Loan Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I 11/15/2006 - - 11/15/2007 220,000.00 4.500% 1,473,590.00 1,693,590.00 11/15/2008 390,000.00 4.500% 1,303,200.00 1,693,200.00 11/15/2009 410,000.00 4.500% 1,285,650.00 1,695,650.00 11/15/2010 430,000.00 4.500% 1,267,200.00 1,697,200.00 _........ .. ........ .... ............ ... ......... . ........... . __........... .. ...._., ........... .. ......_ .. ....... .._..... 11/15/2011 445,000.00 4.500% 1,247,850.00 1,692,850.00 11/15/2012 465,000.00 4.500% 1,227,825.00 1,692,825.00 11/15/2013 490,000.00 4.500% 1,206,900.00 1,696,900.00 11/15/2014 510,000.00 4.500% 1,184,850.00 1,694,850.00 11/15/2015 535,000.00 4.500% 1,161,900.00 1,696,900.00 11/15/2016 555,000.00 5.000% 1,137,825.00 _ 1,692,825.00 11/15/2017 585,000.00 5.000% 1,110,075.00 1,695,075.00 11/15/2018 615,000.00 5.000% 1,080,825.00 1,695,825.00 11/15/2019 645,000.00 5.000% 1,050,075.00 1,695,075.00 11/15/2020 675,000.00 5.000% 1,017,825.00 1,692,825.00 11/15/2021 915,000.00 5.000% 984,075.00 1,899,075.00 11/15/2022 960,000.00 4.375% 938,325.00 1,898,325.00 11/15/2023 1,005,000.00 4.400% 896,325.00 1,901,325.00 11/15/2024 1,045,000.00 4.400% 852,105.00 1,897,105.00 11/15/2025 1,095,000.00 4.500% 806,125.00 1,901,125.00 .......... ........... ...._....... _. ......... ..... .. ........_. ._............_. ._...._... ........._._...... ...._... 11/15/2026 1,140,000.00 4.500% 756,850.00 1,896,850.00 11/15/2027 1,195,000.00 4.500% 705,550.00 1,900,550.00 11/15/2028 1,250,000.00 4.500% 651,775.00 1,901,775.00 11/15/2029 1,305,000.00 4.500% 595,525.00 1,900,525.00 11/15/2030 1,365,000.00 4.500% 536,800.00 1,901,800.00 11/15/2031 1,425,000.00 4.500% 475,375.00 1,900,375.00 11/15/2032 1,490,000.00 5.000% 411,250.00 1,901,250.00 11/15/2033 1,560,000.00 5.000% 336,750.00 1,896,750.00 11/15/2034 1,640,000.00 5.000% 258,750.00 1,898,750.00 11/15/2035 1,725,000.00 5.000% .... ................__... 11/15/2036 1,810,000.00 5.000% 90,500.00 1,900,500.00 Total $27,895,000.00 - $26,228,420.00 $54,123,420.00 2006 COPS wl Refunding CO I Issue Summary 1 8/4/2006 1 12:20 PM i Capital Markets Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service - Includes DWR Loan Debt Service Schedule Part 2 of 2 Yield Statistics Bond Year Dollars $552,584.39 ..... .... ....,..,... Avera e Life __..... 19.809 Years Average Coupon 4.7465004% Net Interest Cost(NIC) 4.7100724% ........ . .. .._....... True Interest Cost TIC 4.6732300% Bond Yield for Arbitrage Purposes.. .. ........._. __ .._ ........... .......... 4.6310748% . .......... All Inclusive Cost AIC 4 7891420% IRS Form 8038 Net Interest Cost 4.6414288% Weighted Average Maturity 19.731 Years 2006 COPs w/Refunding CO I Issue Summary 1 8/4/2006 1 12:20 PM RBC Capital Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service - Includes DWR Loan Net Debt Service Schedule Date Principal Coupon Interest Total P+1 DSR Existing D/S Net New D/S 11/15/2006 - - (10,671.66) 153,255.44 142,583.78 11/15/2007 220,000.00 4.500% 1,473,590.00 1,693,590.00 (88,073.78) 306,507.53 1,912,023.75 11/15/2008 390,000.00 4.500% 1,303,200.00 1,693,200.00 (88,073.78) 306,502.41 1,911,628.63 11/15/2009 410,000.00 4.500% 1,285,650.00 1,695,650.00 (88,073.78) 306,497.37 1,914,073.59 11/15/2010 4.30,000.00 4.500% 1,267,200.00 1,697 200.00 (88 073.78) 306 492.85 1,915,619.07 11/15/2011 445,000.00 4.500% 1,247,850.00 1,692,850.00 88,073.78 306,487.14 1,911,263.36 11/15/2012 465,000.00 4.500% 1,227,825.00 1,692,825.00 (88,073.78) 306,481.27 1,911,232.49 11/15/2013 490,000.00 4.500% 1,206,900.00 1,696,900.00 (88,073.78) 306,475.08 1,915,301.30 11/15/2014 510,000.00 4.500% 1,184,850.00 1,694,850.00 (88,073,78) 306,469.17 1,913,245.39 11/15/2015 535,000.00 4.500% 1,161,900.00 1,696,900.00 88,073.78 306,462.87 _1,915,289.09 11/15/2016 555,000.00 5.000% 1,137,825.00 1,692,825.00 (88,073.78) 306,456.30 1,911,207.52 11/15/2017 585,000.00 5.000% 1,110,075.00 1,695,075.00 (88,073.78) 306,450.30 1,913,451.52 11/15/2018 615,000.00 5.000% 1,080,825.00 1,695,825.00 (88,073.78) 306,442.48 1,914,193.70 11/15/2019 645,000.00 5.000% 1,050,075.00 1,695,075.00 (88,073.78) 306,436.16 1,913,437.38 11/15/2020 675,000.00 5.000% 1,017,825+00 1,692,825.00 (88,073.78) 306,428.38 1,911,179.60 11/15/2021 915,000.00 5.000% 984,075.00 1,899,075.00 (611,673.85) 1,287,401.15 11/15/2022 960,000.00 4.375% 938,325.00 1,898,325.00 (63,825.46) 1,834,499.54 11/15/2023 1,005,000.00 4.400% 896,325.00 1,901,325.00 (63,825.46) 1,837,499.54 11/15/2024 1,045,000.00 4.400% 852,105.00 1,897,105.00 (63,825.46) 1,833,279.54 11/15/2025 1,095,000.00 00 4 500% 806 125.00 1,901,125.00 (63 825.46) 1,837,299.54 .._..... ........ ............... 11/15/2026 1,140,000.00 4.500% 756,850.00 1,896,850.00 (63,825.46) 1,833,0 1.24.54 11/15/2027 1,195,000.00 4.500% 705,550.00 1,900,550.00 (63,825.46) 1,836,724.54 11/15/2028 1,250,000.00 4.500% 651,775.00 1,901,775.00 (63,825.46) 1,837,949.54 11/15/2029 1,305,000.00 4.500% 595,525.00 1,900,525.00 (63,825.46) 1,836,699.54 11/15/2030 1,365,000.00 4.500% 536,800.00 1,901 800.00 (63 825 46) 1,837,974.54 11/15/2031 1,425,000.00 4.500% 475,375.00 1,900,375.00 (63,825,46) 1,836,549.54 11/15/2032 1,490,000.00 5.000% 411,250.00 1,901,250.00 (63,825.46) 1,837,424.54 11/15/2033 1,560,000.00 5.000% 336,750.00 1,896,750.00 (63,825.46) 1,832,924.54 11/15/2034 1,640,000.00 5.000% 258,750.00 1,898,750.00 (63,825.46) 1,834,924.54 11/IS/2035 1 725,000 00 5 000% 1176,750.00 1,901 750.00 (63 825.46) 1,837,924.54 _............... .. __. ....._. (_...... ._ ....__).. ......... ._............... 11/15/2036 1,810,000.00 5.000% 90,500.00 1,900,500.00 1,442,025.39) 458,474.61 Total $27,895,000.00 - $26,228,420.00 $54,123,420.00 (4,190,960.26) $49443,844.75 $54,376,304.49 2006 COPS w/Refunding CO I Issue Summary 1 &4/2006 1 12:20 PM R w r Capital Markets Public Finance Page 4 Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service -Includes DWR Loan Pricing Summary Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 11/15/2007 Serial Coupon 4.500% 3.550% 220,000.00 101.032% 222,270.40 11/15/2008 Serial Coupon 4.500% 3.600% 390,000.00 101.819% 397,094.10 11/15/2009 Serial Coupon 4.500% 3.630% 410,000.00 102.542% 420,422.20 11/15/2010 Serial Coupon 4.500% 3.660% 430,000.00 103.183% 443,686.90 1/15/2011 Serial Coulon 4.500% _3.710% 445,000.00 103.650% 461,242.50 11/15/2012 Serial Coupon 4.500% 3.750% 465,000.00� 104.065% 483,902.25 11/15/2013 Serial Coupon 4.500% 3.830% 490,000.00 104.138% 510,276.20 11/15/2014 Serial Coupon 4.500% 3.920% 510,000.00 103.997% 530,384.70 11/15/2015 Serial Coupon 4.500% 4.000% 535,000.00 103.786% 555,255.10 11/15/2016 Serial Coupon 5.000% _4.050% 555,000.00 107.820% 598,401.00 11/15/2017 Serial Coupon 5.000% 4.110% _ 585,000.00 �107.876% �631,074.60 11/15/2018 Serial Coupon 5.000% 4.180% 615,000.00 107.731% 662,545.65 11/15/2019 Serial Coupon 5.000% 4.230% 645,000.00 107.688% 694,587.60 11/15/2020 Serial Coupon 5.000% 4.290% 675,000.00 107.457% 725,334.75 1/15/2021 Serial Cou on 5.000% 4.340% 205,000.00 105.355% c 215,977.75 11/15/2021 Serial Coupon 5.000% 4.340% 710,000.00 107.257% 761,524.70 11/15/2022 Serial Coupon 4.375% 4.500% 960,000.00 98.573% 946,300.80 11/15/2023 Serial Coupon 4.400% 4.540% 1,005,000.00 98.341% 988,327.05 11/15/2024 Serial Coupon 4.400% 4.580% 1,045,000.00 97.795% 1,021,957.75 11/15/2031 Term 1 Coupon 4.500% 4.720% 8,775 000.00 96.777% 8,492,181.75 ............ .... ._..... o.... .......... .. 11/15/2036 Term 2 Coupon 5.000% 4.600% 8,225,000.00 103.202/o c 8,488,364.50 Total - - - $27,895,000.00 - - $28,251,112.25 Bid Information Par Amount of Bonds $27,895,000.00 Reoffering Premium or(Discount) 356,112.25 Gross Production $28 25l t 12 25 Total Underwriter's Discount 0.55501- $(154,817.25) Bid(100 722%).... .._,.._._..._ .................................... 28,096,295.00 Total Purchase Price $28,096,295.00 Bond Year Dollars $552,584.39 Ave _ __ _ _ 19.809 Years rage Coupon 4.7465004% Net Interest CostNlC„� 4.7100724% True Interest Cost(TIC) 4 6732300% 2006 COPS w!Refunding CO I Issue Summary 1 8/4/2006 1 12:20 PM • Capital Markets Public Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service- Includes DWR Loan Proof of Reserve Fund Requirement Part 1 of 2 Date Principal Interest TOTAL P+I 11/15/2006 - 11/15/2007 220,000.00 1,473,590.00 1,693,590.00 11/15/2008 390,000.00 1,303,200.00 1,693,200.00 11/15/2009 410,000.00 1,285,650.00 1,695,650.00 11/15/2010 430,000.00 1,267,200.00 1,697,200.00 _... ..._........... ............. ..... ._...... ......... ......... .._ .,....................._... ........... 11/15/2011 445,000.00 1,247,850.00 1,692,850.00 11/15/2012 465,000.00 1,227,825.00 1,692,825.00 11/15/2013 490,000.00 1,206,900.00 1,696,900.00 11/15/2014 510,000.00 1,184,850.00 1,694,850.00 11/15/2015 535,000.00 1,161,900.00 1,696,900.00 ._. _ _ _ ....._______ ........____ 11/15/2016 555,000.00 1,137,825.00 1,692,825.00 11/15/2017 585,000.00 1,110,075.00 1,695,075.00 11/15/2018 615,000+00 1,080,825.00 1,695,825.00 11/15/2019 645,000.00 1,050,075.00 1,695,075.00 11/15/2020 675,000.00 1,017,825.00 1,692,825.00_ 11/15/2021 915,000.00 � 984,075.00 1,899,075.00 11/15/2022 960,000.00 938,325.00 1,898,325.00 11/15/2023 1,005,000.00 896,325.00 1,901,325.00 11/15/2024 1,045,000.00 852,105.00 1,897,105.00 11/15/2025 1,095,000.00 806,125.00 1,901,125.00 ....... ............ ........ ...... ..... . .. ......... ..._._...-.. .. ...- __........ 11/15/2026 1,140,000.00 756,850.00 1,896,850.00 11/15/2027 1,195,000.00 705,550.00 1,900,550.00 11/15/2028 1,250,000.00 651,775.00 1,901,775.00 11/15/2029 1,305,000.00 595,525.00 1,900,525.00 11/15/2030 1,365,000.00 536,800.00 1,901,800.00 11/15/2031 1,425,000.00 475,375.00 1,900,375.00 11/15/2032 1,490,000.00 411,250.00 1,901,250.00 11/15/2033 1,560,000.00 336,750.00 1,896,750.00 11/15/2034 1,640,000.00 258,750.00 1,898,750.00 11/15/2035 1,725,000 00 176 750.00 1 901,750.00 .......... . ._.......... ............... ...._...... ........ ............_.. .__..._.. ..........._...._-.. ...._... .__.-.._.-_ _........_.. 11/15/2036 1,810,000.00 90,500.00 1,900,500.00 Total $27,895,000.00 $26,228,420.00 $54,123,420.00 2006 COPs w/Refunding CO I Issue Summary 1 8/412006 1 12:20 PM II C Capital Markets Public Page Certificates of Participation (Water System Improvement Projects) SERIES 2006 Option No. 2 -Wraparound Debt Service - Includes DWR Loan Proof of Reserve Fund Requirement Part 2 of 2 PROOF OF RESERVE FUND MAXIMUM PERIODIC DEBT SERVICE Omit First Period? Yes -100-/.of the Maximum Periodic Debt Service ........... ................. 1,901,800.00 .............................. ........... ........... ......................................... ........... AVERAGE PERIODIC DEBT SERVICE Total PA 54 123,420.00 Pond Years(Delivery Date) 30.12 m-�,of&'Average Periodic Debt Service ........... 2,245,992.16 PERCENT OF PAR 10%of Par ----............ ............ ......................................................................... 2,789,500.00 RESERVE REQUIREMENT Proofs Requirement 1,901,800.00 2006 COPS w/Refunding CO I issue Summary I B/412006 1 12:20 PM RBC Capital Markets Public Finance Page 7 Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Sources & Uses Dated 10/01/2006 1 Delivered 10/01/2006 Sources Of Funds Par Amount of Bonds $7,680,000.00 Reoffering Premium 418,002.65 Transfers from Prior Issue Debt Service Funds 552,114.02 Transfers from Prior Issue DSR Funds 808,470.00 Total Sources Uses Of Funds Total Underwriters Discount (0 555%) 42 624.00 ..._..... ..._......._. .. ............ .......... ......... .... .. ........ ..... .._.._...__... ..... ........,.....,........_.. Costs of Issuance 41,297.72 Gross Bond Insurance Premium(45:0 bp) 49 837.96 .. .. ....... ..... De osit to Debt Service Reserve Fund DSRF 523 600.07 Deposit to Current Refunding Fund 8 798,729....... Roundin Amount 2,497.00 Total Uses $9 458 586.67 2006 COPS w1 Refunding CO I Refunding of 1996 COPS 1 8f 412006 1 12:20 PM R r r Capital Public Finance r• Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPs Debt Service Schedule Date_ Principal Coupon Interest Total P+I 11/15/2006 - 11/15/2007 220,000.00 4.500% 409,078.06 629,078.06 l 1/15/2008 390,000.00 4.500% 354,625.00 744,625.00 11/15/2009 410,000.00 4.500% 337,075.00 747,075.00 11/15/2010 430,000 00 4.500% 318,625.00 748,625.00 ...... ........ .... .............. ...__._._. ... ._. .. ....._. ...__._... 11/15/2011 445,000.00 4.500% 299,275.00 744,275.00 11/15/2012 465,000.00 4.500% 279,250.00 744,250.00 11/15/2013 490,000.00 4.500% 258,325.00 748,325.00 11/15/2014 510,000.00 4.500% 236,275.00 746,275.00 11/15/2015 535,000.00 4.500% 213 325.00 748 325.00 _ _ _.__...5,00_._..... ...�_ _._�__... _ _. � a _ _._ 11/15/2016 555,000.00 5.000% 189,250.00 744,250.00 11/15/2017 585,000.00 5.000% 161,500.00 746,500.00 11/15/2018 615,000.00 5.000% 132,250.00 747,250.00 l 1/15/2019 645,000.00 5.000% 101,500.00 746,500.00 11/15/2020 675,000.00 5.000% 69,250.00 744,250.00_ 11/15/2021 710,000.00 � 5.000% _ 35,500.00 � 745,500.00 Total $7,680,000.00 - $3,395,103.06 $11,075,103.06 Yield Statistics Bond Year Dollars $70,078.67 verae �___ __.. _ _ 9.125 Years Average Coupon 4.8447027% Net Interest Cost(NIC) 4 3090495% _..... True Interest Cost(TIC) 4.1590840% Bond Yield for Arbitrage Purposes 4.1590840% _I..... _._..... All Inclusive Cost A1C 4.3174298% IRS Form 8038 Net Interest Cost 3.9935491% . Weighted Average Maturity ..._....... ..9 206 Years 2006 COPS w/Refunding CO I Refunding of 1996 COPS 1 8/4/2006 1 12:20 PM IMCapital Public Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Debt Service Comparison Date Total P+I DSR Net New D/S Old Net D!S Savings 11/15/2006 - (2,938.10) (2,938.10) - 2,938.10 11/15/2007 629,078.06 (24,248.32) 604,829.74 755,853.04 151,023.30 11/15/2008 744,625.00 (24,248.32) 720,376.68 752,168.04 31,791.36 11/15/2009 747,075.00 (24,248.32) 722,826.68 752,340.54 29,513.86 11/15/2010 748,625.00 (24,248.32).. 724 376.68 756,078.04 31,701.36 ........ ...... _. .,.._..... .._...._.. ........ 11/15/2011 744,275.00 (24,248,32) 720,026.68 748,288.04 28,261.36 11/15/2012 744,250.00 (24,248.32) 720,001.68 754,480.54 34,478.86 11/15/2013 748,325.00 (24,248.32) 724,076.68 753,830.54 29,753.86 11/15/2014 746,275.00 (24,248.32) 722,026.68 751,330.54 29,303.86 11/15/2015 748�32L(0� _ 24,248.32 724,076.68_� 757 455.54 � 33,378.86 11/15/2016 744,250.00 (24,248.32) 720,001.68 756,655.54 36,653.86 11/15/2017 746,500.00 (24,248.32) 722,251.68 754,205.54 31,953.86 11/15/2018 747,250.00 (24,248.32) 723,001.68 750,725.54 27,723.86 11/15/2019 746,500.00 (24,248.32) 722,251.68 755,625.54 33,373.86 11/15/2020 744,250.00 24,248.32 720,001.68 753,365.54 33,363.86 11/15/2021 745,500.00 (547,848.39) 197,651.61 (74,254.46) (271,906.07) Total $11,075,103.06 (890,262.97) $10,184,840.09 $10,478,148.10 $293,308.01 PV Analysis Summary(Net to Net) Gross PV Debt Service Savings 1,311 535.64 Effects of changes in DSR investments _ _ _...._._, _(463,537.95) Net PV Cashflow Savings�a Transfers from Prior Issue Debt Service Fund 552,114.02 Contingency or Rounding Amount 2,497.00 .. .,....._........ ........... ........ ._.. _............. .. ........... .. Net Present Value Benefit $298,380.66 Net PV Benefit/ $8,465,000 Refunded Princi al 3.525% Net PV Benefit/ $.7,680.,000 Refunding Principal 3.885% Refunding Bond Information RefundinI.g Dated Date 10/01/2006 _..._.._. . ........._ __ ................. ..._..... Refunding Delivery Date 10/01/2006 2006 COPS w/Refunding CO I Refunding of 1996 COPS 1 8/42006 1 12:20 PM PublicRBC Capital Markets I Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPs Net Debt Service Schedule Date Principal Coupon Interest Total P+1 DSR Net New D/S 11/15/2006 - - - (2,938.10) (2,938.10) 11/15/2007 220,000.00 4.500% 409,078.06 629,078.06 (24,248.32) 604,829.74 11/15/2008 390,000.00 4.500% 354,625.00 744,625.00 (24,248.32) 720,376.68 11/15/2009 410,000.00 4.500% 337,075.00 747,075.00 (24,248.32) 722,826.68 11/15/2010 430 000.00 4.500% 318 625.00 748,625 00 24,248 32 724,376.68 ............. ....._..._. _........__, . ......._.. .. .(.._.... . . .. ).......-......_.,...., . 11/15/2011 445,000.00 4.500% 299,275.00 744,275.00 (24,248.32) 720,026.68 11/15/2012 465,000.00 4.500% 279,250.00 744,250.00 (24,248.32) 720,001.68 11/15/2013 490,000.00 4.500% 258,325.00 748,325.00 (24,248.32) 724,076.68 11/15/2014 510,000.00 4.500% 236,275.00 746,275.00 (24,248.32) 722,026.68 11/15/2015 535,000.00 4.500% _ 213,325.00 748,325.00 (24,248.32) 724,076.68 11/15/2016 _ 555,000.00 5.000% 189,250.00 744,250.00 (24,248.32) _ 720,001.68 11/15/2017 585,000.00 5.000% 161,500.00 746,500.00 (24,248.32) 722,251.68 11/15/2018 615,000.00 5.000% 132,250.00 747,250.00 (24,248.32) 723,001.68 11/15/2019 645,000.00 5.000% 101,500.00 746,500.00 (24,248.32) 722,251.68 11/15/2020 675,000.00 5.000% 69,250.00 744,250.00 24,248.32 7Q001.68 _..._ _._... _ _ .00 _( _. . ) 2 _� 11/15/2021 710,000.00 5.000% 35,500.00 745,500.00 (547,848.39) 197,651.61 Total $7,680,000.00 - $3,395,103.06 $11,075,103.06 (890,262.97) $10,184,840.09 2006 COPS w/Refunding CO I Refunding of 1996 COPS 1 8/4/2006 12:20 PM iCapital PublicPage Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPS Current Refunding Escrow Cash Date Principal Rate Interest Receipts Disbursements Balance 11/15/2006 8,798,729.00 5.180% 56,191.33 8,854,921.25 8,854,921.25 Total $8,798,729.00 - $56,191.33 $8,854,921.25 $8,854,921.25 Investment Parameters Investment Model[PV,GIC,or Securities ..................................................................................... ............... ................. Securities Default investment yield target Unrestricted Cash Deposit 0.92 Cost of Investments Purchased with Bond Proceeds �29-09_ Total Cost of Investments $8,798,729.92 -T41gq Cost of Investments at bond Meld T^ $8,805 510.45 ,�al,pasitiy��o a!jy�)jrbitra 6,780.53 Yield to Receipt 5.27695610/,o Yield for Arbitrage Purposes State and Local Government Series(SLGS)rates for 8/02/2006 2006 COPS wl Refunding CO I Refunding of 1996 COPS 1 8/4/2006 1 12:20 PM RBC Capital Markets Public Finance Page 12 Certificates of Participation (Water System Improvement Projects) Refunding of 1996 COPs Derivation Of Target Amount (tu 4.6310748% Present Cumulative Date Cashflow PV Factor Value PV 10/01/2006 1.0000000x 11/15/2006 8,854,921.25 0.9944200x 8,805,510.45 8,805,510.45 Total $8,854,921.25 - $8,805,510.45 - Composition Of Initial Deposit Cost of Investments Purchased with Bond Proceeds 8,798,729.00 Cash Depgsit _. _ _ _ _ _ 0.92 Target Cost of lnvestments at bond yield $8,805,510.45 Actual positive or(negative)arbitrage " `� �"� ____ __ __._ ----------------- ---------6,780.53 2006 COPS w/Refunding CO I Refunding of 1996 COPS 1 8/4/2006 1 12:20 PM RBC Capital Markets Public Refunding Certificates of Participation (Water System Improvement Project) SERIES 1996 Total Refunded Debt Service Date Principal Coupon Interest Total P+I 11/15/2006 350,000.00 5.250% 227,621.25 577,621.25 11/15/2007 370,000.00 5.050% 436,867.50 806,867.50 l 1/15/2008 385,000.00 5.150% 418,182.50 803,182.50 11/15/2009 405,000.00 5.250% 398,355.00 803,355.00 11/15/2010 430 000.00 5 300%....................... 377,092 50 807,092.50 11/15/2011 445,000.00 5.350% 354,302.50 799,302.50 11/15/2012 475,000.00 5.400% 330,495.00 805,495.00 11/15/2013 500,000.00 5.500% 304,845.00 804,845.00 11/15/2014 525,000.00 5.500% 277,345.00 802,345.00 11/15/2015 560,000.00 5.500% 248,470.00 808,470.00 11/15/2016 590,000.00 5.500% 217,670.00 807,670.00 11/15/2017 620,000.00 5.400% 185,220.00 805,220.00 11/15/2018 650,000.00 5.400% 151,740.00 801,740.00 11/15/2019 690,000.00 5.400% 116,640.00 806,640.00 11/15/2_020 725,00_0.00 5.400% 79,3_80.00 804,380.00 11/15/2021 745,000.00 5.400% _40,230.00 _785,230.00 Total $8,465,000.00 - $4,164,456.25 $12,629,456.25 Yield Statistics Average Life 8.711 Years Weighted Average Maturity�Par Basin 8.711 Years Average Coupon 5.4142891% Refunding Bond Information Refunding Dated Date 10/O1/20O6 _.........._._ ......... ...._._.... . ...._._._.. .............__.. ......... ......... ..._......._.._._. ......._.... _ ............ .......... ._.._..... .._..__....._..._...... Refunding Delivery Date 10/01/2006 1996 COPs I SINGLE PURPOSE 1 81412006 1 12:20 PM UCapitalMarkets Certificates of Participation (Water System Improvement Projects) New Money Portion Sources & Uses Dated 10/01/2006 1 Delivered 10/01/2006 Sources Of Funds Par Amount of Bonds $20,215,000.0( _$20,215,000.00 Uses Of Funds Original Issue Discount-(OIDL mm 61,890.40 Tota]Underwriter's Discount 0.555% 112,193.25 Costs of Issuance 108,702.28 Gross Bond Insurance Premium(45.0 bp) _ 193 717.43 .... . _....__ _...._ De osit to Debt Service Reserve Fund DSRF 1,378,199.93 _______ _... _.�._�_._._. _._ _ Deposit to Project Construction Fund 18 359,272.00 ...... .. ........ ........................__._. .........._. .._, .._._. .__,..._._._. . _._.,.._.. ...__._..... ..._ ......... ..... Roundin Amount 1.024.71 Total Uses $20,215,000.00 2006 COPS w/Refunding CO 1 2006 New Money COPS 1 8/412006 1 12:20 PM R r Capital Markets Public Certificates of Participation (Water System Improvement Projects) New Money Portion Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I 11/15/2006 11/15/2007 1,064,511.94 1,064,511.94 11/15/2008 948,575.00 948,575.00 11/15/2009 948,575.00 948,575.00 11/15/2010 948 575.00 948,575.00 _._.. ._.._....... _.-...._._..... .._..._... .. _,...._. 11/15/2011 948,575.00 948,575.00 11/15/2012 948,575.00 948,575.00 11/15/2013 948,575.00 948,575.00 11/15/2014 948,575.00 948,575.00 11/15/2015 948,575.00 948,575.00 11/15/2016 948,575.00 948,575.00 1 I/15/2017 948,575.00 948,575.00 11/15/2018 948,575.00 948,575.00 11/15/2019 948,575.00 948,575.00 11/15/2020 _- 948,575.00 _948,575.00 11/15/2021� 205,000.00 5.000% 948,575.00 _ 1,153,575.00 11/15/2022 960,000.00 4.375% 938,325.00 1,898,325.00 11/15/2023 1,005,000.00 4.400% 896,325.00 1,901,325.00 11/15/2024 1,045,000.00 4.400% 852,105.00 1,897,105.00 11/15/2025 1 095,000 00 4.500% 806 125.00 1,901,125.00 11/15/2026 1,140,000.00 4.500% 756,850.00 1,896,850.00 11/15/2027 1,195,000.00 4.500% 705,550.00 1,900,550.00 11/15/2028 1,250,000.00 4.500% 651,775.00 1,901,775.00 11/15/2029 1,305,000.00 4.500% 595,525.00 1,900,525.00 11/15/2030 1,365,000.00 4.500% 536,800.00 1,901,800.00 11/15/2031 1,425,000.00 4.500% 475,375.00 1,900,375.00 11/15/2032 1,490,000.00 5.000% 411,250.00 1,901,250.00 11/15/2033 1,560,000.00 5.000% 336,750.00 1,896,750.00 11/15/2034 1,640,000.00 5.000% 258,750.00 1,898,750.00 11/15/2035 1 725,000 00 5.000% 176 750.00 1,901,750.00 ........._. .._._....... ...._.. _........... ...__._... .. ._.......__ 11/15/2036 1,810,000.00 5.000% 90,500.00 1,900,500.00 Total $20,215,000.00 - $22,833,316.94 $43,048,316.94 2006 COPS w/Refunding CO 1 2006 New Money COPS 1 8/4/2006 1 12:20 PM M Capital Markets Public Certificates of Participation (Water System Improvement Projects) New Money Portion Net Debt Service Schedule Date Principal Coupon Interest Total P+I DSR Existing D/S Net New D/S 11/15/2006 (7,733.56) 153,255.44 145,521.88 11/15/2007 1,064,511.94 1,064,511.94 (63,825.46) 306,507.53 1,307,194.01 11/15/2008 948,575.00 948,575.00 (63,825.46) 306,502.41 1,191,251.95 11/15/2009 948,575.00 948,575.00 (63,825.46) 306,497.37 1,191,246.91 11/15/2010 948,575.00 948,575 00 (63,825 46) 306,492.85 1 191,242 39 ........ _.. _. 11/15/2011 948,575.00 948,575.00 (63,825.46) 306,487.14 1,191,236.68 11/15/2012 948,575.00 948,575.00 (63,825.46) 306,481.27 1,191,230.81 11/15/2013 948,575.00 948,575.00 (63,825.46) 306,475.08 1,191,224.62 11/15/2014 948,575.00 948,575.00 (63,825.46) 306,469.17 1,191,218.71 11/15/2015 948,575.00 948,575.00 63125.46 306,4§2.87 12191,212.41 11/15/2016 948,575.00 948,575.00 (63,825.46) 306,456.30 1,191,205.84 11/15/2017 948,575.00 948,575.00 (63,825,46) 306,450.30 1,191,199.84 11/15/2018 948,575.00 948,575.00 (63,825.46) 306,442.48 1,191,192.02 11/15/2019 948,575.00 948,575.00 (63,825.46) 306,436.16 1,191,185.70 11/15/2020 _ - 948,575.00 948,575.00 63,825.46 306,428.38 1,191,177.92 11/15/2021 205,000.00 5.000% 948,575.00 1,153,575.00 (63,825.46) 1,089,749.54 11/15/2022 960,000.00 4.375% 938,325.00 1,898,325.00 (63,825.46) 1,834,499.54 11/15/2023 1,005,000.00 4.400% 896,325.00 1,901,325.00 (63,825.46) 1,837,499.54 11/15/2024 1,045,000.00 4.400% 852,105.00 1,897,105.00 (63,825.46) 1,833,279.54 11/15/2025 1,095 000 00 4.500% 806,125 00 1,901,125.00 (63,825 46) 1,837,299.54 _... 11/15/2026 1,140,000.00 4.500% 756,850.00 1,896,850.00 (63,825.46) 1,833,024.54 11/15/2027 1,195,000.00 4.500% 705,550.00 1,900,550.00 (63,825.46) 1,836,724.54 11/15/2028 1,250,000.00 4.500% 651,775.00 1,901,775.00 (63,825.46) 1,837,949.54 11/15/2029 1,305,000.00 4.500% 595,525.00 1,900,525.00 (63,825.46) 1,836,699.54 11/15/2030 1,365,000.00 4.500% 536,800.00 1,901,800.00 63,825.46) 1,837,974.54 11/15/2031 1,425,000.00 4.500% 475,375.00 1,900,375.00 (63,825.46) 1,836,549.54 11/15/2032 1,490,000.00 5.000% 411,250.00 1,901,250.00 (63,825.46) 1,837,424.54 11/15/2033 1,560,000.00 5.000% 336,750.00 1,896,750.00 (63,825.46) 1,832,924.54 11/15/2034 1,640,000.00 5.000% 258,750.00 1,898,750.00 (63,825.46) 1,834,924.54 11/15/2035 1,725,000.00 5.000% 176,750 00 1,901,750.00 (63,825.46) 1 837,924 54 ....... __...__... _._ 11/15/2036 1,810,000.00 5.000% 90,500.00 1,900,500.00 (1,442,025.39) 458,474.61 Total $20,215,000.00 - $22,833,316.94 $43,048,316.94 (3,300,697.29) $4,443,844.75 $44,191,464.40 2006 COPS w/Refunding CO 1 2006 New Money COPS 1 8/412006 1 12:20 PM RBC Capital Markets Public Proposal to Serve As Sole Managing Underwriter TRUCKEE DONNER PUBLIC UTILITY DISTRICT -€ ' PL,iblic Utility District August 7, 2006 BGqR STEAMS BEARBear,Stearns&Co.Inc. 1999 Avenue of the Stars STUMS Los Angeles,CA 90067 Te1310-201-2600-2600 www.bearsteams.com August 7,2006 Ms.Mary Chapman Administration Services Manager Truckee Donner PUD 11570 Donner Pass Road Truckee,CA 96160 Dear Mary: Bear Stearns appreciates this opportunity to submit our proposal to serve as sole underwriter for the upcoming financing for the Truckee Donner Public Utilities District (the "District") water system. We can assure you that Bear Stearns will work with the District to implement a financing program that meets the District's goals. As sole manager on these financings, Bear Stearns will be dedicated to providing innovative financial solutions and investment banking products as well as superior client service. We will work to explore options to minimize debt service costs while maintaining future flexibility and mitigating risk. After reading our proposal, we are confident you will find our qualifications and experience second to none. Financing Team. The bankers assigned to work with the District are the same team members that worked successfully with the District during its 2003 Revenue COP financing. Steve Dworkin, senior representative, has been providing coverage to water and wastewater utilities since the early 1980's. In addition,the underwriting and sales professionals assigned to these financings are intimately familiar with the market for California water and wastewater certificates in general and, most importantly, have hands on experience with such issuers as East Bay Municipal Utility District, Modesto Irrigation District, Metropolitan Water District of Southern California, Contra Costa Water District, the Cities of Los Angeles, Riverside, Pasadena and San Diego, the City and County of San Francisco and Sacramento Regional County Sanitation District and other California water and wastewater credits. Water and Wastewater Utility Experience. As a leader in structuring and marketing bond issues for public utilities, Bear Stearns has worked with both large and small utilities throughout the country. Each with varying customer sizes and program requirements. Bear Stearns has managed 146 water and wastewater transactions totaling$22.83 billion since January 1, 2004. In California,we have managed 38 financings totaling approximately $3.78 billion over the same time period. Our bankers and marketing professionals have developed an exemplary record of performance in developing structures to raise capital at aggressive yields, providing operational flexibility and meeting the challenges faced by our municipal water and wastewater utility clients. Comprehensive Financing Plan. Bear Stearns has analyzed a myriad of financing alternatives for the District's proposed financings, including traditional and synthetic fixed rate debt(swaps). Under current market conditions, we recommend the use of traditional fixed rate certificates. However, our goal is to work with the District and its financing team to select the alternative that is most appropriate for the District in terms of risk tolerance and projected economic results. Rating Agencies and Credit Enhancement. Bear Stearns has extensive experience during the past several years in designing rating agency and credit enhancer presentations that have resulted in both strong ratings and aggressive bids by providing evidence to mitigate and/or eliminate key concerns. More specifically, Bear Stearns has brought a multitude of similar water and wastewater issuers before these entities. By adopting a sound strategy, including a prudent plan of finance, we can convince the rating agencies on the merits of an investment grade rating. Marketing Prowess. Bear Stearns offers the District national marketing prowess as well as access to California investors. We have one of the largest fixed income institutional sales forces in the industry with more than 175 institutional registered representatives. Our firm also has approximately 493 registered representatives, 113 of whom are based in California, which will access retail investors and high net-worth individuals,a market that keeps a high percentage of its assets in tax-exempt bonds. Given the importance of the District's capital improvement program, the investment banking team selected by the District must be capable of evaluating the various alternative financing structures,assuring their compliance with the District's legal requirements and assessing their impact on the District's ratepayers. The District's bankers must also implement the selected financing strategies in the most cost- effective manner. Bear Steams' formidable combination of municipal finance and water and wastewater utility banking, coupled with the Firm's marketing strength make us ideally qualified to serve the District as sole manager on this important assignment. We look forward to the opportunity to work with the District. Sincerely, Steve Dworkin Chris Roberts Senior Managing Director Managing Director TABLE OF CONTENTS Page 1) Please comment on whether you believe the District should pursue a refunding of the Series 1 1996 COPs. 2) Do you foresee any obstacles in the District's financing plan?Please comment on the use of 2 multiple revenue streams to support the transaction and whether you believe bond insurance will be available and beneficial to the District. 3) Please describe your firm's experience in selling tax-exempt California revenue bonds. 8 4) Please provide a list of the individuals who will be assigned to work with the District. 11 Describe the role of each individual and include the telephone and facsimile number of each member of the primary banking team. Include a brief resume of each individual's education, training and experience. 5) Please provide a fee quote that includes all components of the gross spread. Please indicate 12 what portions of the quote may be considered fixed. Please assume that the Financial Advisor has developed a financial pro-forma and will take the lead in preparing the District's rating presentation. In estimating underwriter's counsel expenses,please note that Stadling Yocca will draft the preliminary and final official statements. Please indicate which firm you would consider using for underwriters'counsel. 6) Why should TDPUD select your firm to senior manage the proposed transaction? 12 APPENDICES Tab Recommended Structure Cashflows A Alternative 1 Cashflows B National Revenue Bond Experience Since 2005 C Finance Team Resumes D Marketing Plan E IN a II a ONNER District will provide for the November 15, 2006 debt 1) Please comment on. whether you believe.: the service requirement about 45 days before schedule District should pursue a refunding of the with funds on hand. To the extent the certificates due Series 1996 COPs, November 15,2007 and 2008 remain outstanding,the new credit structure will need to "spring" into place Given the characteristics of the current market, a when the last outstanding Series 1996 Certificate is refunding of the District's Series 1996 COPS with retired. It is possible, however, that Bond Counsel traditional fixed rate certificates would provide the will allow the additional pledged revenues to secure District with substantial present value savings. From the Series 1996 Certificates, but this would be a pure economic point of view, the District currently somewhat unusual. By refunding all the Certificates, has $7.36 million of refunding candidates, which the District will have the ability to craft a new credit produce approximately $360,000 in present value structure from scratch. This will allow the District to savings or 4.888 % of refunded par. Under current create more operational flexibility in its legal market conditions, only the Certificates maturing in structure and incorporate the most up to date bond 2006 —2008 do not produce savings. The following covenants. Additionally, it will be a more simplified table summarizes the results of a refunding of a structure for bondholders, rating agencies and bond portion of the Series 1996 Certificates. insurers as they review the credit. Given current market conditions and future interest Partial Refunding of Series 1996 Certificates rate expectations, this is an especially opportune time Dated Date October 3,2006 to refund all of the outstanding Certificates due to the Refunding Par $ 7,845,000 District's current ability to achieve this refunding Refunded Maturities 2009—2021 without incurring any cash flow losses. The Refunded Par $ 7,360,000 Average Annual Savings $ 20,00o following table summarizes the results of a refunding Present Value Savings(s) $ 360,000 of all of the outstanding Series 1996 Certificates. Present Value Savings(%of Refd Par) 4.891% of It is important to note, that once the refunding Complete Refundin of Series 1996 Certificates Dated Date October 3,2006 component is combined with the new money portion Refunding Par $ 7,980,000 of the financing, savings associated with the Refunded Maturities 2006—2021 refunding will improve due to the additional escrow Refunded Par $ 8,465,000 earnings received from the higher blended arbitrage Averse Annual Savings $ 36,000 Present Value Savings($) $ 360,000 yield(See our response to Question 2). Present Value Savings(%of Rerd Par) 4.253% While there is some pick-up in refunding these bonds with synthetic structures, given that bonds have Additional Defeasance Structure. Coupled with outperformed swaps during the past six months and capitalized interest on the new certificates, which we that the refunding bonds have a final maturity of recommend for 1 or 2 years on the new money 2021, we believe the District is not being properly projects,deferring all or a portion of the principal due compensated (i.e. interest rate pickup) given tax / on the 2007 and 2008 refunding Certificates allows basis risks associated with LIBOR based products. If the District to reap the benefits of its approved 6% the use of these products is desired, they would be rate increases by generating sufficient revenues to more appropriately utilized as part of the new money create rate stabilization and operating reserves from component of the overall financing, as they generate excess cash flow. The build-up of reserves with the the greatest benefit on the long end of the yield curve approved rate increases will send strong signals to the (see our response to Question 2). rating agencies that the District is planning to carry As more fully discussed in Question 2 below under through on its covenant and security promises. Recommended Structure, the District may want to Deferring principal on the refunding component consider defeasing all of the Series 1996 Certificates. must, of course, get Bond Counsel approval and be Since we believe a credit secured by both Water part of any overall business plan that fits within the Sales Charges and Facility Fees will be extremely modeling that your financial advisor has been well received in the market, by defeasing all of the working on for some time. We believe if we can 1996 Certificates, the new credit structure could satisfy Bond Counsel's concerns regarding the begin immediately upon closing. This assumes the deferral strategy outlined above, it will result in an BEAR,STEARNS&CO.INC. 1 WIF- excellent credit package and,ultimately, great pricing traditional fixed rate certificates and is presented in the market. below. Following the Recommended Structure discussion is the rationale for our recommendation. 2) Do you foresee any obstacles in the District's' Additionally, depending on the District's long-term financing plan? Please comment on the use of financing goals and tolerance for risk, the District multiple revenue,, streams to support the may opt to include synthetic fixed rate components to transaction and whether you believe bond lower costs as discussed in the alternative structures. insurance will be available and beneficial to ; Recommended Structure the District. 100%Traditional Fixed Rate Financing We do not currently foresee any obstacles to the ❑ Issue $28.125 million of traditional fixed rate District's financing plan. However, we recognize that securing an investment grade rating and an new money certificates,amortizing as follows: insurance commitment are crucial in providing the i- $19.87 million in 2009 — 2036 to produce District with the overall lowest cost of financing. level debt service to provide proceeds to The following discussion describes: (i) our overall construct system improvements approach to the District's financing, including the Recommended Structure and Alternative structures; Capitalize interest for up to two years to and (ii) suggested enhancements to the Water allow new rate increases to take effect system's credit which will assist in putting the and build reserves (currently able to District in position to secure a strong investment invest at the cost of funding} grade rating from the rating agencies. $675,000 in 2009 — 2011 to produce level Overall Approach. Bear Stearns will take a team debt service to provide proceeds to finance approach to the design and implementation of a equipment financing plan for the District's Water system. ❑ Issue $7.58 million of traditional fixed rate Working with the District's staff, bond counsel, refunding certificates to refund the 2009 — 2021 financial advisor and other consultants, we will build maturities of the Series 1996 Certificates. a financing plan that adheres to the goals and needs Amortize to produce level savings of the Water system's capital program. i> Unrestricted escrow earnings given "current" Our overall approach is based upon meeting several refunding key parameters: ❑ 10-year par call ❑ New money financing which produces $18,359,272 million of proceeds, amortized as ❑ Utilize bond insurance, if economic, at time of outlined in the RFP; pricing (Solicit insurance bids from MBIA, Ambac,FSA,FGIC,XL Capital and CIFG) ❑ Take advantage of current opportunities in the market by: (i) locking in attractive fixed rates at Under current market conditions and historically low rates, and (ii) refunding the assuming investment grade underlying Series 1996 Certificates; ratings, insurance is recommended for all maturities. Assumption of 50 basis points in LJ Minimize increases in Water system fees; and analysis. ❑ Achieve investment grade ratings by enhancing ❑ Net fund Project Fund - Assume 24-month underlying legal documents. drawdown schedule and investing at the cost of Recommended Structure. Based on an analysis of funding(no positive arbitrage) the District's financial condition, current debt ❑ Fully fund Debt Service Reserve Fund (currently portfolio, and current and anticipated market able to invest at cost of funding) conditions, Bear Stearns has formulated a Recommended Structure, which provides the District Release excess Debt Service Reserve Fund with an attractive cost of financing as well as a monies from the refunding of the Series 1996 sufficient hedge against volatile interest rates. Our Certificates to help"buy-down"refunding Recommended Structure consists entirely of BEAR,STEARNS&CO.INC. 2 I Summary f Results Recommended Structure f Traditional Fixed Rate I and 30-N'rTreasury Dated Date October 3,2006 6.00 Total New Money&Refunding Par $ 28,125,000 --JO-yearMMD(CmreutJO-rearMMD=4.475:) —3I,_Treuuury(Current30-year Trearun-5.06%) Average Annual Debt Service $ 1,703,000 True Interest Cost(%) 4.646% 5.50 Refunded Maturities 2009—2021 Refunded Par $ 7,360,000 5.90 Average Annual Savings $ 21,000 t 3` Present Value Savings($) $ 395,000 ,>,. bso Present Value Savings(%of Ret'd Par) 5.367% ", Based on this plan, the District is able to lock-in Q Q attractive fixed rate borrowing and generate m - _ _ ® _ s e e _ m e approximately $400,000 or 5.37% savings (an This unique market environment allows the District increase over the stand-alone refunding). Cash flows for the Recommended Structure can be found in to place its debt along the entire yield curve at Appendix A. historically attractive levels without incurring significant additional costs on the debt placed out Rationale for Recommendedlong and hedge itself against future rate increases and continued market volatility. As shown in the Current Market Characteristics. The current following chart, the current spread between 1- and market is characterized by: (i) significant volatility; 30-year MMD is 84 bps, 143 bps lower than the (ii) overall rising short- and long-term rates; (iii) a flat yield curve; and (iv) municipals trading rich to historical average. taxables. Spread 1 i Given current market volatility, a traditional fixed bp,) 4s0 rate financing is a prudent way to lock-in a relatively attractive cost of financing by taking advantage of the 35 FDIY-YiOkh III- (:;5 A. flat yield curve, hedge against interest rate risk and 300 �a' market volatility, and maximize future financing 250 flexibility. 100 Since the Fed began tightening rates in June 2004, 1S0 short-term rates have increased dramatically. In fact, 100 Spread Be uern l-and 30-Year 6iMD over the past 18 months, BMA has increased 180 bps s° Huturkul Arerege=137 hp, and LIBOR has increased 285 bps. In addition, it is B - se anticipated that short-term rates will continue to be m affected as the yield curve flattens and the Fed Fixed vs. Floating Rate Debt Mix. The current continues to monitor the market. As it relates to market characteristics provide an excellent long-term fixed rates, recent decreases have resulted opportunity for issuers to lock-in attractive fixed in extremely attractive levels. rates. Our proprietary Efficient Frontier chart below attempts to provide a framework for the District in Historical : determining the type of debt to issue in various market environments. 6.00 BMA(Cur M BMA=3.64%) 4.00 •I-Month LIBOR(Curreol LIBOR=5.40y) .00 3.oe --- 0.00 BEAR,STEARNS&CO.INC. 3 ' a Bear Stearns'Efficient Frontier points to 5.25% on June 29, 2006, the seventeenth 30-Year Insured MMD minus BMA Cash Rates such increase since June 30,2004. 1991-Present High Interest Rate%/ � Steep N10d Came Steel)Yield Came Bear Stearns' economic forecast predicts slowing BifurcaII interest rate increases (as compared to the past two I r 4.75 years) and a relatively flat yield curve (with some 4.50 slight steepening) throughout 2006. Our economists d 4.25 40 , m 3:15 ,`.trr..`• ' ., project a Fed Funds target rate of 5.50% and the 10- 3.50 - '«; •25 ` • year Treasury rate at 5.75%by year-end. O 3. • _ - 3.00 2.7s 2.50 • 'YkW H6larkal Inlerml Rate.aM Bev 5[eerro'Pro]ce0om r r 1.75 '. •Trend.A.♦: •. i ., va ' 1.50 •. x. 1.25 ...,..h..,i ♦ .. 5.0 Fe=EF.Ar T'eRr Pxe S ,. :. IDt,s3r',c. is l`atSEttiS -.� 0.75 • • 3.0 4.00 4.25 4.s0 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 z.o In III IV 1° Low Interest Rates/ High Interest Ratesi 0.0 Flat Yield Cune30-Year Insured MMDHatVidel Curve1994 1995 1996 1997 1998 1999 20H 291H 2002 2003 20114 2005 2006 Fixed Rates 'short C ails Bond Insurance. The decision of whether or not to The Efficient Frontier compares long-term fixed rates utilize insurance can be based solely on a cost with floating rates. The horizontal location of each comparison of the insurance premium versus actual point on the chart is a measure of the absolute level yield difference between insured and unenhanced of long-term fixed rates: points on the right side of certificates. This analysis can be accomplished on a the chart represent periods of high rates, while points maturity-by-maturity basis to optimize the use of on the left side of the chart represent low rates. The credit enhancement. For this numeric analysis, we vertical placement of each point is a measure of the utilized the following estimates: slope of the yield curve: points at the top of the chart ❑ Estimated insurance premium for the District's represent periods with a steep yield curve, while financing is 50 basis points; and points on the bottom of the chart represent periods L-11 Spread between insured "Aaa / AAA"-rated and with a flat yield curve. We are currently in a rate environment (Quadrant III) where the yield curve is uninsured "BBB"-rated certificates of 30 basis flat (fixed rate certificates and swaps are attractive points from a historical perspective) and, as discussed Cl Spread between insured "Aaa / AAA"-rated and below, we anticipate moving into a rate environment uninsured `A'-rated certificates of 15 basis points (Quadrant IV)consisting of high fixed rates and a flat As shown in the following chart, assuming a `BBB' yield curve. Based on these characteristics, the underlying rating and 50 basis points for insurance, District can take advantage of a market that is under current market conditions, it is economic to extremely attractive both from a historical and from a insure all maturities of the Recommended Structure relative perspective by locking in long-term fixed (2009-2036). rates. In addition, by issuing traditional fixed rate Insurance Break-even Analysis certificates, the District can save its variable rate a 250 'BBB' Underlying exposure capacity for a higher long-term interest rate e environment. 00 a H 150 Interest Rate Expectations. Recent economic indicators suggest continued if somewhat slower, 100 - economic growth. Due to the Federal Reserve's 50 i1, 211�i•' i'relniulrl inflation fears, the market is unclear regarding future a`a 0 r e ., en a en N t- a en v1 rate increases, although an additional increase is not o o N N N N N en en <n v e o 0 0 o v e v o v o 0 o e anticipated at the August 8 meeting. The Federal N N N N N N N N N N N N N N N Reserve raised the Fed Funds target by 25 basis With an `A' underlying rating and assuming 50 basis points for insurance, it would not be economical to BEAR,STEARNS&CO.INC. 4 u ) g i � DONNER i insure the 2009 maturity, as shown in the breakeven 1996 Certificates; and (ii) the incorporation of graph below. synthetic fixed rate products. The following Insurance Break-even Analysis discussion details the specifics associated with 'A'Underlying several alternative structures: (1)traditional fixed rate e 120 new money and refunding (including the 2007 and 1 100 - 2008 maturities); (2) fixed rate/CPI certificates; and Q. 80 (3)fixed rate/65%of 1-Month LIBOR swap. 60 Alternative 1 -Traditional Fixed Rate New Money y 40 C'=sii,�,tcd and Refunding Certificates (Including 2007 and 20 fnsar¢�,�cc Prej„€„�, 2008 Maturities in Refunding) o 0 0 0 0 0 eq 0 0 0 0 0 0 0 o e ❑ Issue approximately $28.30 million of traditional N N N N CJ N N N N N N N N N N fixed rate certificates Based upon our recent experience with water credits, r Include the 2007 and 2008 maturities of the we believe the District be able to obtain an insurance Series 1996 Certificates in the refunding. (no commitment and reasonable pricing from the bond deferral of principal) insurers. We also recommend the District obtain a bid Y Defease with cash on hand the 2006 maturity from XL Capital and CIFG in addition to the four due 43 days after the October 3 closing traditional bond insurers—namely, Ambac, FGIC, ❑ All other assumptions remain the same as the FSA and MBIA. We note, while XL Capital and Recommended Structure CIFG could offer a relatively low premium, there is currently a trading differential between certificates Recommended insured by XL Capital or CIFG and those insured by Alternative I Structure the others. Only a detailed analysis between the costs Dated Date October 3,2006 of bond insurance premiums and the pricing Total New Money&Refunding Par $ 28,300,000 $ 28,125,000 Average Annual Debt Service $ 1,705,000 $ 1,703,000 differential can determine the best course of action in True Interest Cost(%) 4.646% 4.646% this regard. Refunded Maturities 2007—2021 2009—2021 Refunded Par $ 8,465,000 $ 7,360,000 Timing. With the current volatility in the market and Average Annual Savings $ 55,000 $ 21,000 forecasts of potentially increasing rates in mind' our Present Value Savings($) $ 391,000 $ 395,000 Recommended Structure will allow the District Present Value Savings(%of Rel'd Par) 4.619% 5.367% expeditious access to the market. Taking into Cash flows for Alternative 1 can be found in account the time needed to prepare documentation Appendix B. and the recommendation of meeting with the rating agencies and insurers, we believe the District can be Alternative 2 -Traditional Fixed Rate Certificates in a position to access the markets within two (Without 2007 and 2008 Maturities in Refunding) months. We are prepared to dedicate the personnel Incorporating CPI Certificates. and resources necessary to complete the District's ❑ Issue approximately $28.075 million of transaction on the most aggressive timetable possible. traditional fixed rate certificates Alternative Structures LJ Issue approximately $3.505 million of variable Our Recommended Structure is based upon current rate CPI certificates wrapped with a CPI synthetic fixed rate swap interest rates. Should the market be considerably different at the time of sale, alternative structures r Amortize in 2017 through 2019 should be explored. However, even in today's ❑ All other assumptions remain the same as the interest rate environment, as a way to minimize its Recommended Structure overall cost of financing and provide operational CPI Certificates are unique fixed rate products in that flexibility, the District can incorporate alternative they pay interest according to the percentage change structures. As mentioned previously, depending on in the non-seasonally adjusted U.S. City Average All the District's long-term financing goals, tolerance to Items Consumer Price Index for All Urban risk and market conditions, it may be prudent for the Consumers. Once issued,they are swapped to a fixed District to consider alternative structures such as: (i) rate that is approximately 10 basis points lower than a refunding of 2007 and 2008 maturities of the Series traditional fixed rate yield. In addition, CPI BEAR,STEARNS&CO. INC. 5 TRUCKEE DONNER Utility u Certificates are non-callable which eliminates the © Issue approximately $13.57 of variable rate interest rate "kick" associated with callable premium certificates wrapped with a 65% of 1-Month certificates in the current market. LIBOR synthetic fixed rate swap The structure of a CPI Certificate transaction is Amortize in 2022—2036 simple. As mentioned above, the CPI Certificates Cl All other assumptions remain the same as the make variable rate payments where the size of the Recommended Structure payment is based upon the percentage change in the The following chart graphs the yields associated with non-seasonally adjusted U.S. City Average All Items BMA and 65% of LIBOR swaps and an insured Consumer Price Index for All Urban Consumers traditional fixed rate financing for the District. There (published monthly by the Bureau of Labor Statistics are only"real"benefits if the District were to execute of the U.S. Department of Labor). This payment a percentage of LIBOR swap. As indicated, an consists of two components: (i) floating rate insured fixed rate financing produces more favorable component based on the change in the CPI Index;and yields in the early years with the swap curve (ii) a constant rate component. In return, the District presenting significant benefits on the middle and would receive this same floating rate component long-end of the curve. However, we would based on the change in the CPI Index from Bear recommend the District execute a 65% of 1-Month Stearns. To utilize this product, the Certificates and LIBOR towards the tail end of the swap curve where swap payments must be insured. the District could capture the most savings versus a CPI Certificates traditional fixed rate structure and be compensated for accepting the additional basis, tax and Truckee Fixed Rare counterparty risks associated with percentage of Donner LIBOR swaps. CPI+Spread Yield Comparison Insured Fixed Rate and Swap Curves CPI'°'Spread 5.00% E ` 4.50% s 4.00% By amortizing CPI Certificates in the 11 to 13 year 3.50% maturity range, the District can decrease its overall O O N N N N N M M M cost of financing. O o O O o O N N N N N N N N N N N N N N N -^-^District's Insured Rate - - •District's Insured Rate(YTM) BMA-10 Swap* ^-^-65%of LIBOR Swap* Recommended Alternative 2 Structure ' *Includes 25 bps for ongoing expenses. Dated Date October 3,2006 Total New Money&Refunding Par s 28,075,000 $28,125,000 As the District may be aware, a 65% of 1-month Average Annual Debt Service s 1,700,000 s 1,703,000 True Interest Cost(%) 4.629% 4.646 LIBOR swap is a synthetic fixed rate structure Refunded Maturities 2009-2021 2009-2021 whereby variable rate certificates are initially issued, Refunded Par $ 7,360,000 s 7,360,00o then wrapped with a synthetic structure where the Averse Annual Savin s $ 24,000 $ 21,000 pp y Present Value Savin s(s) $ 425,000 $ 395,Ooo District pays Bear Stearns a fixed rate and receives Present Value Savings(%of Reed Par 5.774% 5.367% 65%of 1-month LIBOR in return. Alternative 3 -Traditional Fixed Rate Certificates (Without 2007 and 2008 Maturities in the Refunding) Incorporating a 65% of 1-Month LIBOR Synthetic Fixed Rate Swap. J Issue approximately $14.70 million of traditional fixed rate certificates Y Amortize in 2009—2021 BEAR,STEARNS&CO. INC. 6 "i 65% of 1-Month LIBOR Swap the rate covenant is the foundation upon which the Fixed Ratc new credit will be built. The current 1.1OX existing Truckee covenant is a little low for the rating agencies given the District has no prior track record of 1.50X over a I L Donner aim long period of time. 65%of 1-Month LIBOR ❑ Certificate securily provisions .Actual Floatiw R.le Existing rate covenant is 1.1OX,however, many issuers have created: ' V, 1, 1.25 X Senior Lien Debt and if ",..F subordinate lien is created, 1.10 X Senior Debt plus Subordinate Debt As indicated in the prior yield curve comparison 1.00 X all obligations chart, the District can realize significant benefits > Limitations on Future Obligations Secured from utilizing a 65% of 1-month LIBOR swap when by Net Revenues as follows: compared against the Recommended Structure. • Senior obligations Recommended' ✓ Historical test to have sufficient net Alternative "Structure Dated Date October3,2006 revenues to cover at least senior lien Total New Money&Refunding Par $28,270,000 $28,125,000 rate covenant Averse Annual Debt Service $ 19566,000 $ 1,703,000 True Interest Cost(%) 4.189% 4.646 Refunded Maturities 2009-2021 2009-2021 Keeping with the Districts policy Refunded Par $ 7,360,000 $ 7,360,000 that Facilities Fees paid by Avers a Annual savings $ 26,000 $ 21,000 developers should a for growth Present Value savings(S) $ 406,000 $ 395,000 h pay Present Value Savings(%of Reed Par) 5.516% 5.367% related projects, a forward-looking test should be created. Although 65% of 1-month LIBOR swaps provide ❑ Forward looking test to have significant benefits versus traditional fixed rate sufficient net revenues to cover certificates, with the risks inherent in a LIBOR swap, at least senior lien rate covenant it is up to the District and its financial advisor to determine if such a structure is appropriate. ✓ Only 75% of Facility Fees can be assumed Security Provisions and Financial Policies. Given the Board approved rate increase and the financial ❑ Include language to account for modeling that targets 1.50X coverage, including potential credits given to Facility Fees (as discussed with the District's developers for constructing financial advisor), we believe the rating agencies will infrastructure view the Water system as a good investment grade Subordinate obligations, if created credit. Water is an essential commodity, and unlike electricity, is insulated from major competitive ✓ Use lower coverage of Parity Debt challenges, Nevertheless, the District should be in a plus Subordinate Debt position to analyze the benefits of potentially ✓ 1.00 X all obligations adopting more stringent security provisions if requested by the rating agencies as a condition to ❑ Financial policies increase its ratings. We also recommended that, to Water Sales charges will be adjusted the extent not previously adopted, the District annually, if necessary, to avoid large establish a set of financial policies dealing increases at less frequent intervals specifically with coverage, reserves, investments, variable rate debt and derivatives. A summary of % Operating surpluses will be placed in reserve potential security enhancements as well as a list of or, at the Board's option, to subsequent financial policies adopted by other Water and year's operation and maintenance costs Wastewater utilities are presented below. Given that financial modeling is set to produce 1.50X coverage, BEAR,STEARNS&CO.INC. 7 i y TRUCKEE Facility Fees will be set at a level necessary ❑ Coordinating and developing an interactive credit to assure new connections finance all costs of presentation as a visual aid in the rating agency expanding the Water system process; and The Board will maintain adequate reserves to ❑ Working with the District to anticipate the rating provide financing for replacement of major agencies concerns and to develop analysis and system components reaching the end of their arguments to allay them. useful lives Our experience in credit analysis, especially in the Debt will not be used to finance operations area of California water and wastewater finance, will and maintenance requirements enable us to provide the analysis necessary to The Installment Purchase Agreement will not establish a strong credit rating for the District. be amended in any way which would Personnel assigned to the District's account have materially adversely affect the Board's Net Forked with the District and many large water and Revenues or the security for installment wastewater issuers in California in obtaining initial payments ratings, maintaining current ratings and obtaining rating upgrades. The capital projects financed through the issuance of debt will be financed for a period A similar approach would be taken when not to exceed the expected useful life of the approaching potential insurers, as the criteria for project "success" with insurers and rating agencies is very similar. As mentioned above, Bear Stearns is well Recommended Ratings Strategy. In conjunction versed in succesfully presenting issuers to rating with the issuance of the proposed financings, Bear agencies and bond insurers and we feel the District is Stearns recommends that the District conduct in- well-situated for positive results from both. depth presentations to the rating agencies, which will detail the components of the capital improvement 3) Please describe your f`um's experience in plan, the finance plan and the engineer's findings. If selling tax-exempt California revenue bonds, possible, we would recommend that the presentations be held at the District to give the rating analysts the California Distribution. Bear Stearns has a opportunity to meet with several staff members and significant commitment to the California institutional establish a dialogue with the key management and retail market. Our Western Region Municipal professionals. Bond Department, located in our Los Angeles office, By adopting a sound strategy, which establishes is one of the few full-scale sales and trading necessary and appropriate rate increases and a operations in the State. With 113 retail registered prudent plan of finance to fund the District's capital sales professionals and 9 institutional registered sales program, we can convince the rating agencies on the professionals, Bear Stearns has one of the largest merits of a strong investment grade rating. Receiving municipal bond practices in California. These multi-year rate increases from the Board prior to professionals cover bond funds, trusts, investment meeting with the rating agencies will send a strong managers, and other high net worth retail customers. signal. In addition, Bear Stearns also serves as the back office for 2,081 investment banking firms. This Approach to Rating Agencies. As previously provides the Firm with significant additional sales accomplished on the District's Series 2003 A & B and power and broader local and regional investor financings, Bear Stearns will work with the District coverage for our underwritings. Through these to develop its rating agency strategy and presentation. outlets, we will be able to reach all target markets, Our services will include: thus providing the District with the largest universe ❑ Serving as an advocate for the District with the of prospective buyers. rating agencies; As a result of our marketing prowess and ability to ❑ In consultation with the District and its advisors, provide issuers the lowest possible cost in their tax- refining the credit characteristics into a exempt financings, Bear Stearns has become a comprehensive and effective"story"stressing the market leader in selling tax-exempt California strengths of the District's credit profile; revenue bonds. Since 2005, Bear Stearns is ranked 2nd in selling tax-exempt California revenue bonds, BEAR,STEARNS&CO.INC. 8 Or'- TRUCKEE I III r ONNER II with 61 transactions worth a combined $9.675 secondary market is to profit from proprietary billion. In addition, over the same time period, Bear transactions, our focus when pricing new issues is to Stearns is ranked 3Td having managed 600 financings translate the same market expertise and willingness to with a combined par in excess of $103.16 billion take risk into producing the lowest possible interest throughout the nation. A detailed list of our costs to our issuer clients. underwriting experience can be found in Appendix C. The presence of the District's underwriter in the For a more detailed description of the make up and secondary market is critical to a successful sale of the location of our premier sales force, see our response District's securities in the primary market. It is only to Question 6. through secondary market trading that a firm can Utility Experience. Bear Stearns has focused much have more than a superficial understanding of the of its investment banking effort in the utility business relative value of securities, credit differentials and the for the past decade. As a result, the Firm has a accurate pricing levels for bonds in the primary significant public utilities franchise nationally and in market. In addition, secondary market trading particular, California. Notably, since January 1, provides Bear Stearns with ongoing opportunities to 2004, Bear Stearns is ranked 3`d for all negotiated provide product and value-added services to our California public utility financings. More specific to institutional and retail clients and to have a the District's needs, Bear Stearns has managed 146 continuous understanding of buyers' ever changing water and wastewater transactions totaling $22.83 market perceptions. These well-established investor billion since January 1, 2004. In California, we have relationships, developed through daily secondary managed 38 financings totaling approximately $3.78 market interactions, translate into the broadest market billion over the same time period Bear Stearns has for our issuers' bonds in the primary market and the broad-based experience as senior manager for major most aggressive pricing. water and wastewater issuers such as East Bay Case Studies. Recently, Bear Stearns completed Municipal Utility District, Modesto Irrigation public utility financings for the Sacramento Regional District, Metropolitan Water District of Southern County Sanitation District and the Modesto Irrigation California, Contra Costa Water District, the Cities of District. We believe the following case studies Los Angeles, Riverside,Pasadena and San Diego, the demonstrate Bear Stearns' investment banking City and County of San Francisco and Sacramento acumen and ability to fully penetrate the retail and Regional County Sanitation District. The following institutional market for California utility paper. map demonstrates the depth and breadth of Bear Ultimately, an issuer wants an underwriter with a Stearns' national public utility experience. proven track record of achieving its clients' goals — i,, well structured,cost effective financings. R � M1t ax{t ,4oL E4 Sacramento Regional County tia.nnq c . • vs E. ins r,�r _ w „III g J' dP �RiDA It R-1 Sanitation Districts ("SRCSD"). n-iYi2t f:laRSR11 K* �v`1. S. li Bear Stearns has had a long- standing relationship with SCRSD and serves as one f 9 ft ' E FW -kk f' lq� LRp IPA. ii5u 'ail# 1t EiEL'e.'.' >r of the District's senior underwriters. Most recently, on July 11, 2006, Bear Stearns served as senior manager to Sacramento Sanitation Districts for its $338,960,000 Series 2006 Bonds. The bonds were issued as traditional fixed rate callable bonds maturing 2007 through 2036. Proceeds of the Series PRIFA PRPr 2006 Bonds were to fund the District's ongoing capital improvement program including certain Secondary Market Trading. Bear Stearns is additions and improvements to the Sanitation System, considered one of the most aggressive market makers comprising interceptors and pumping stations. In in the municipal secondary market, which is the addition, proceeds of the Series 2006 Bonds were foundation of the multi-trillion dollar tax-exempt used to fund a debt service reserve fund. The Bonds market. Over the past year, our average daily were structured with final maturity in 2036 and level secondary market trading volume for our California annual debt service. The Series 2006 Bonds were offices was $35 million. While our goal in the insured by FGIC and carried insured and underlying ratings of Aaa/AAA/AAA and Aa3/AA/AA. Bear BEAR,STEARNS&CO.INC. 9 TRUCKEE DONNER 1 Stearns market prowess and effective marketing were near the same levels they were when the strategy resulted in attractive financing costs for forward swap was executed. The District, having SCRSD. Bear Stearns as manager of the District's found it preferable to accept a slightly lower amount syndicate was able to effectively encourage retail of savings in favor of eliminating the potential risks participation and secured retail orders of $133.35 inherent in an interest rate swap, decided in favor of million, of which $81.96 million represented retail this alternative. orders brought in by Bear Stearns. Bear Stearns was In addition to the refunding, the District chose to take able to leverage this strong retail interest and repriced advantage of the reasonably low interest rates to fund the 2017 to 2036 maturities 3 to 5 basis points its capital needs for the upcoming three years through through the preliminary pricing levels. Our effective a new money fixed rate issuance. Thus, the leveraging of retail demand resulted in the Series refunding and new money issuances were combined, 2006 Bonds being priced to achieve an arbitrage allowing the District to spread its fixed issuance costs yield of 4.522/o and an all-in interest cost of over a larger transaction. While being beneficial in 4.7598/o. The arbitrage yield represents an average lowering the new moneys costs, this also had the spread of 11 basis points over the 19 year effect of improving the refunding savings. (approximate average life of bonds) MMD AAA as of July 12,2006. During the period in which we were preparing to Modesto Irrigation District("MID'). bring the District's financing to market, interest rates In December 2004, MID entered into began to increase. However, as interest rates MY ii a 65% of LIBOR forward swap as an increased, the value to MID of its forward swap also interest rate hedge on the current refunding of its increased, offsetting the higher financing costs. In Series A Electric Revenue Bonds. The Series A fact, over this period, bonds outperformed swaps Bonds could not be current refunded until July 2006 (i.e., swap rates increased at a faster pace than (90 days prior to their October 2006 call date). By bonds), causing the termination value of the swap to utilizing the forward swap, MID was able to take increase faster than the increase in debt service, advantage of the then prevailing market and lock in Which also improved refunding savings. present value savings of$6.0 million, or 7.49%.of the The bonds (which were actually issued as certificates par amount of the bonds to be refunded. of participation, or "COPs") were priced in mid-July As this was MID's first interest rate swap, it was 2006. Bear Stearns had sole managed prior sales that necessary for the District's staff to embark on an Were sized in the $50—$70 million range. However, education program for its Board to inform them of this transaction grew to approximately $150 million. the mechanics and risks associated with derivative To assist Bear Stearns in selling the COPs, the products. Bear Stearns worked with the District's District chose to include three co-managers in the staff and its financial advisor to prepare materials for underwriting syndicate. Additionally, to further this process. Additionally, Bear Stearns analyzed a penetrate the local retail market, as had been done on full array of alternative financing techniques to several previous deals, a six-firm selling group was compare to the LIBOR-based forward refunding utilized. The first day of a two-day order period was including (i) traditional fixed rate forward bonds, (ii) devoted to retail orders only with priority to BMA-based swap refunding, and (iii) basis swaps. Stanislaus County and then all California retail. At the time, the LIBOR swap clearly provided the During the retail order period,the financing team was best savings with an acceptable amount of risk. able togenerate $54.9 million in retail orders, or 37.3/o of the $147.0 million issue size. Bear Stearns As we began approaching the settlement date for the was able to generate $20.445 million of total orders. forward swap, Bear Stearns initiated the process of Two of the co-managers had no retail orders at all. analyzing the cost of unwinding the forward swap The COPS were priced on a Wednesday and and issuing traditional fixed rate bonds to current Thursday. While the tone in the market at the refund the Series A Bonds. Our initial analysis beginning of the week in which the COPS were sold indicated that if the District terminated the swap and was good, the market began to weaken throughout issued fixed rate bonds for the refunding it could the day of the regular order period. Between retail expect to receive present value savings of and institutional orders about $115 million of bonds approximately $5.3 million, or 6.60% of refunding were placed. Bear Stearns, believing the issue was par. This included a nominal termination payment properly priced, underwrote the $31 million from Bear Stearns since, at that time, interest rates BEAR,STEARNS&CO. INC. 10 i TRUCKEE .ONNER ' '1 remaining balance, working it off over the course of Analyst, will provide additional banking and the next day. In doing so, we were able to achieve quantative services to the District. prices that were 7 bps through the MMD scale on the In addition to our banking team,John Young, Senior front end of the yield and only 12 bps above MMD Managing Director and National Marketing Manager, from 2020 through 2036. Overall the District was and Roy Carlberg, Senior Managing Director, will able to capture $5.8 million of net present value be responsible for the pricing and underwriting of all savings, or 7.22% of refunded par and the True long-term fixed rate certificates. Chris Tota, Senior Interest Cost of the combined transaction was 3.80/o. Managing Director, will coordinate the firm's 4) Please provide a list of the individuals wits will California and national retail sales effort. If the District decided to incorporate floating rate be assigned to work with the DiOnct.Describe" certificates in the plan of finance, Kyle Pulling, the-'role, of each individual and include the Senior Managing Director and Head of our Short- telephone and facsimile number of each Term Marketing Group,will direct the placement and member of the primary banking team.Include: remarketing of all floating rate certificates. In a brief resume of each individtial's'education, addition, all access to capital market products would training;and`experience. be coordinated by Nathaniel Singer, Senior Managing Director and Manager of our Municipal Bear Stearns has assembled a finance team for the Derivatives Group. Mr. Singer would be assisted by District's proposed financing that includes senior Andrew Levenson, Associate Director. The representatives which have worked extensively with following organization chart illustrates our finance the District in the past. These professionals have team members for the District's financing. strong experience in California municipal transactions and, more specifically, California water financings and will work to provide the District with the highest quality service. All banking team Primary Individual members will give this transaction highest priority. Steve o�nrkin .Senior:}faraagzng IWreet", Steven Dworkin, Senior Managing Director in our Los Angeles office and co-head of Bear Stearns' e e Public Utilities Group, will serve as Bear Stearns' Investment Bankin Underwritin Capital Markets Primary Individual and will be responsible for all ChA,sEbms John ynan� Nat `"", ""1 Managing Dire'lor Sr,titan", a C)i-1- Sc b7enz�asi„1AZrw:P�3r day-to-day activities. Mr. Dworkin will work closely Mart-Snyder r. Rns C art€roq Analr a 1 evartuan. with the District and its advisor to develop and AssorWe Direrior Sr_Managi"Pi t,.e _weiom implement a viable plan of finance that best meets the Damn dodge CM,T.L. _4aud3xP irertnr Districts objectives. His commitment to this S7. hmagiug engagement ensures not only his availability,but also Sr.$3amrXrng 1lpras'terr the Firm's full resources which will be available to Los And" the District. Mr. Dworkin s contact information is ,,t,,N orh included below. Resumes and contact information for each of these STEVEN DWORKIN individuals can be found in Appendix D. Seniorr Director Bear,Stearns& l ttt Avenue of Los Angeles,California II , t l310-201-2791 Facsimile: 310-201-2754 e-mail: sdworkjn((�',,bear.corn Chris Roberts, Managing Director, will work closely with Mr. Dworkin in providing senior banking support for the District's transaction. Mary Snyder, Associate Director, and Darren Hodge, BEAR,STEARNS&CO.INC. 11 iN proposed fees are subject to discussion just as they S} Please provide a fee quote that Includes all were for the last transaction Bear Stearns managed components of -the gross spread. Please : for the District in 2003. indicate ghat portions of the quote may be considered fixed. Please assume that the 6) Why should TDPUD select your firm to senior Financial Advisor has developed. a financial manage the prdposecl transactlan2' pro-forma and will take the lead in preparing the District's, rating presentation. In People, Experience and Trust. Bear Stearns' estimating underwriters counsel expenses, proposed finance team for the District's proposed please note that Stalling Yocca will,draft the financing is comprised of the same individuals who preliminary and final official statements. successfully priced the District's Series 2003 Please indicate which firm you would consider Revenue COPS. As a result of working with the using for underwriters counsel. District in 2003, we are intimately familiar with the Bear Steams' proposed underwriter's spread is as District and its specific needs. As a result, instead of follows: having to take time learning about the District and its ` inner workings, we would be able to hit the ground running" once hired and begin working with the District to formulate the proper plan of finance. This Management Fee 0.88339 25,000 would allow the District to come to market sooner Average Takedown(-) 4.58083 129,638 and provide flexibility in scheduling for the right Total Underwriter's Expenses 0.97990 27,731 market in which to price. As always, Bear Stearns is Total 6.4442 $182 69 committed to providing the same level of outstanding Underwriter's ENpenses $/1,000 Amount(S)Underwriter's Counsel 0.53004 15,000 service for the District's proposed financing as we Dalcomp 0.06000 1,698 did in 2003. Dalcomp EOE 0.0083 20 Dalnet 0.00283 80 Public Finance. Bear Stearns' Public Finance DTC 0.01198 339 Department is one of the most stable and active in the CUSIP 0.01459 413 industry. Year after year, Bear Stearns consistently BMA/CA PSA 0.04000 I'132 ranks amongthe to firms in the industryas senior CDIAC 0.10601 3,000 p Day Loan 0.02894 819 manager of long-term negotiated financings. Most Out-of-Pocket Expenses(4) 0,17668 5,000 recently, Bear Stearns ranked 3rd for negotiated Total 0:97990 $27 731 senior managed financings in 2005. In addition,for (1) Based on scope of services,which includes(i)assisting the District in 2006 year-to-date, Bear Stearns is also ranked 3rd for the preparation of the financing plan; (ii) assisting the District in obtaining ratings and securing credit enhancement;and(iii)conducting negotiated senior managed financings. The Public investor outreach. Finance Department is comprised of 85 investment (2) Traditional fixed rate certificate takedowns are as follows: professionals located in the Firm's main office in 2007: $1.25/$1,000 New York and in two regional Public Finance 2008—2009: $2.50/$1,000 2010-2016: $3.75/$1,000 offices, including Los Angeles and Sacramento. 2017-2036: $5.00/$1,000 California Public Finance Professionals. In If the District decides to issue CPI Certificates in conjunction with Alternative 2, the takedown per bond for the CPI Certificates will be addition to our retail and institutional sales $10.00/$1,000 professionals, Bear Stearns has eight public finance If the District decides to issue Auction Rate Securities in conjunction professionals located in Los Angeles and with Alternative 3,the takedown will be$2.50/$1,000 for 28/35 day and $3.75 for 7-day. If VRDNs are issued, the takedown will be Sacramento. Bear Stearns will use its knowledge of $1.00/$1,000. and experience with the California municipal market (3) Assumes Bond Counsel creates legal and disclosure documents and to ensure the District receives the lowest possible delivers lOb-5 opinion (as stated in RFP). We propose using Kevin cost of financing for future financings. Civale at Hawkins Delafield & Wood in Sacramento, CA as Underwriter's Counsel. In recent years, Bear Stearns' California public (4) Does not include a pricing trip to New York,rating agency/bond insurer finance professionals have taken a vested interest in meetings or expenses related to internet investor roadshow. public utility issuers. As a testament to their success, Although we believe that fair and equitable Bear Stearns is ranked 3rd for all negotiated compensation has been proposed, we do not believe California public utility financings since January 1, that fees should preclude our participation in the 2004. District's proposed financing. Therefore, the BEAR,STEARNS&CO.INC. 12 Cr• Municipal Bond Department. Bear Stearns' sales, created an environment of trust that results in candid trading and underwriting team of 49 municipal feedback from the investment community. specialists is one of the largest in the industry. While Retail Sales. Bear Stearns is one of the few widely recognized as a powerful institutional "institutional" securities firms to have made a distributor of fixed income securities, Bear Stearns substantial commitment to the retail market by also has a highly regarded retail sales force with 493 employing one of the largest retail sales forces of any registered representatives. The Firm's retail institutionally oriented securities firm in the industry. customer base is characterized by sophisticated high net worth individuals—those most likely to purchase All of the Firm's retail professionals sell municipal municipal securities directly rather than through a bonds and target high net worth individual investors, mutual fund. The Firm's retail account executives the most active retail investors in the municipal recently were ranked as the most productive brokers market. Unlike retail oriented firms which focus on nationwide and first in placement of new municipal smaller individual investors, a selective retail issues by a leading independent industry survey. approach allows Bear Stearns' professionals to sell This combination of strong institutional pricing bonds in larger blocks that will have a significant, power with unmatched "true retail" sales enables positive impact on the pricing of the City's securities. Bear Stearns to be aggressive in pricing new issues. The importance of the Firm's retail marketing The chart below illustrates the composition and capability has set Bear Stearns apart from those geographic organization of Bear Stearns' municipal institutional firms which have limited or no retail distribution system. sales ability. The Retail Trading Department maintains markets, negotiates swaps and provides Bear Stearns M—kip.]Dlwib.lon System bids for the Firm's customers. This is particularly important because our high net worth retail customers —NOW.- purchase large blocks of municipal bonds and expect ti.tl.r«rRen.nd 1ngYgb.q S06 Rrrtrnrsd Ar¢ua Reg4W See.Y.ry Muttl a high degree of professional service. P.gwRny7 P.wtl1..Nl Rating Agencies and Credit Enhancement. Bear Stearns has extensive experience during the past Chicam _ eosmn several years in designing rating agency and credit ;' `' ":FewYork enhancer presentations that have resulted in both ao S F....i '�, € strong ratings and aggressive bids by providing _. evidence to mitigate and/or eliminate key concerns. l.o Aneele.e. - ? C . yt t 41 More specifically, Bear Stearns has brought a multitude of water and wastewater issuers similar to 493-{°7"=°� ,;,SR,T "i °ne - the District before these entities. is_�:,,iii.,;�,3.,.,i xee �.��.a s,�s rr„;,���n;��4h , Institutional Sales. Bear Stearns is one of the major Marketing Strategy. We believe that there are four institutional houses in the securities industry in terms key elements that distinguish Bear Stearns from our of both production and size. The Firm employs 175 competitors in our ability to price and market the institutional sales professionals and traders, one of District's debt. These elements are: the largest commitments to the institutional market in 1. Experience, expertise and tenure of our entire the industry. One of the strengths of our institutional municipal marketing department; sales force is the depth and stability of the Firm's 2. Vertical integration of all key personnel from relationships with institutional buyers. The fact that investment banking, marketing, underwriting, many of our senior sales professionals and traders distribution and secondary market support; have been servicing the same major institutional buyers for over a decade translates into superior 3. A customized marketing plan that fully knowledge of their investment parameters. Bear penetrates all potential investor bases;and Stearns' institutional sales professionals have long- 4. An unwavering commitment to the highest level standing relationships with the major purchasers of of business ethics and fair-play California tax-exempt debt. Past and ongoing value- added performance by Bear Stearns' marketing We have designed a customized marketing strategy personnel in covering institutional investors has for the District's potential 2006 water financing. Our marketing strategy will best enable the District to BEAR,STEARNS&CO. INC. 13 DONNER PJ ibl,c Utility District MOE achieve the lowest possible cost of funds, and always focused on the relative advantage associated position the District most favorably for any future with a "synthetic" structure vs. a "traditional" issuance in the capital markets. For a detailed structure. In other words, if an issuer wants to create description of our customize market plan, please see fixed rate liabilities, this can be accomplished either Appendix E. through the implementation of an interest rate swap Short-Term Marketing Group. Bear Stearns is a or through the issuance of fixed rate certificates, and leading underwriter of municipal floating rate each alternative must be weighed in terms of securities. Bear Stearns is active in all modes of the economics as well as risks. Likewise, floating rate short-term market, including auction resets, daily, liabilities must be judged in the same manner. A weekly, monthly, 35-day, commercial paper, indexed major advantage associated with the structure of Bear notes, mandatory tenders, tender option bonds, Stearns Derivatives Group is that this type of custody receipts,and fixed rate notes. comparative analysis is always done prior to making any financing recommendation. During the last five years, Bear Stearns' short-term remarketing book has grown from $4.1 billion to Since inception of the Group, Bear Stearns has completed over $144 billion notional amount of $38.64 billion. There are two principal reasons for the dramatic growth in our short-term programs. One municipal-based derivatives transactions, ranging is our ability to deliver aggressive pricing for our from BMA and percentage of LIBOR swaps to caps, clients. The other is our sales of these products to floors,options and various reinvestment structures. new and growing market segments such as Derivative Product Nt 1Amount corporations and high-net worth retail. The BMA Swaps/Swa tions $73,031,651,529 following chart summarizes Bear Stearns' Caps/Floors/Collars 9,372,769,723 remarketing book broken out into five distinctive LIBOR-Based Swaps / short-term modes. Swa tions 31,852,612,524 Bear Stearns'$38.64 Billion Remarketing Book Reinvestment Products 20,764,778,688 Other Derivative Products 9,025,265,419 Daily VRDBs Structured Floaters Total 144,047,077,883 Weekly VRDBs 30 Programs 5 Programs $2.13 Billion 241 Programs $6.72 Billion $11.52 BillionP ¢�! Commercial Paper Auction Rate 29 Programs 146 Programs $1.07 Billion $17.20 Billion Derivative Products. Bear Stearns' Derivatives Products Group works with all of the departments of the Firm to structure, price and execute proprietary derivatives, which create optimal asset and liability management products for our clients. The Municipal Derivatives Group is unique among our competitors in that it operates as a joint venture between the Municipal Bond Department and the Fixed Income Derivative Department. Physically located on the Municipal Trading floor, and directly next to the Public Finance Department, the Group benefits from the synergies of both areas. In particular, our Derivatives Group is able to identify opportunities in the market based on our knowledge of, and involvement in, both the cash and swap markets. Our analysis of the potential use of swap products is BEAR,STEARNS&CO.INC. 14 Appendix SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: 5YRNM 30YNM FIXREF2 Total Bond Proceeds: Par Amount 675,000.00 19,870,000.00 7,580,000.00 28,125,000.00 Premium 8,410.90 956,211.80 421,331.25 1,385,953.95 683,410.90 20,826,211.80 8,001,331.25 29,510,953.95 Other Sources of Funds: DSRF Release - 403,642.50 403,642.50 683,410.90 20,826,211.80 8,404,973.75 29,914,596.45 Uses: 5YRNM 30YNM FIXREF2 Total Project Fund Deposits: Construction Fund 552,654.94 16,941,038.87 - 17,493,693.81 Refunding Escrow Deposits: Cash Deposit - 0.23 0.23 SLG Purchases - 7,659,814.00 7,659,814.00 - - 7,659,814.23 7,659,814.23 Other Fund Deposits: Debt Service Reserve Fund 51,093.00 1,504,026.53 573,755.47 2,128,875.00 Capitalized Interest 63,700.06 1,875,140.91 - 1,938,840.97 114,793.06 3,379,167.44 573,755.47 4,067,715.97 Delivery Date Expenses: Cost of Issuance 6,000.00 176,622.22 67,377.78 250,000.00 Underwriter's Discount 3,527.83 132,666.37 46,540.47 182,734.67 Insurance @ 50 bps 3,934.75 196,908.90 55,614.82 256,458.47 13,462.58 506,197.49 169,533.07 689,193.14 Other Uses of Funds: Additional Proceeds 2,500.32 -192.00 1,870.98 4,179.30 683,410.90 20,826,211.80 8,404,973.75 29,914,596.45 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 1 BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Annual Period Debt Debt Ending Principal Coupon Interest Service Service 10/03/2006 - - - - - 11/15/2006 195,000 4.000% 910 195,910 195,910 05/15/2007 - - 841,935 841,935 - 11/15/2007 682,650 682,650 1,524,585 05/15/2008 682,650 682,650 - 11/15/2008 20,000 4.000% 682,650 702,650 1,385,300 05/15/2009 - - 682,250 682,250 - 11/15/2009 990,000 4.000% 682,250 1,672,250 2,354,500 05/15/2010 - - 662,450 662,450 - 11/15/2010 1,035,000 4.000% 662,450 1,697,450 2,359,900 05/15/2011 - - 641,750 641,750 - 11115/2011 1,075,000 4.000% 641,750 1,716,750 2,358,500 05/15/2012 - - 620,250 620,250 - 11/15/2012 875,000 5.000% 620,250 1,495,250 2,115,500 05/15/2013 - - 598,375 598,375 - 11/15/2013 920,000 5.000% 598,375 1,518,375 2,116,750 05/15/2014 - - 575,375 575,375 - 11/15/2014 965,000 5.000% 575,375 1,540,375 2,115,750 05115/2015 - - 551,250 551,250 - 11/15/2015 1,015,000 5.000% 551,250 1,566,250 2,117,500 05/1512016 - - 525,875 525,875 11/15/2016 1,070,000 5.000% 525,875 1,595,875 2,121,750 05/15/2017 - - 499,125 499,125 - 11/15/2017 1,115,000 5.000% 499,125 1,614,125 2,113,250 05/15/2018 - - 471,250 471,250 - 11/15/2018 1,165,000 5.000% 471,250 1,636,250 2,107,500 05/15/2019 - - 442,125 442,125 - 11/15/2019 1,235,000 5.000% 442,125 1,677,125 2,119,250 05/15/2020 - - 411,250 411,250 - 11/15/2020 1,290,000 5.000% 411,250 1,701,250 2,112,500 05/15/2021 - - 379,000 379,000 - 11/15/2021 1,335,000 5.000% 379,000 1,714,000 2,093,000 05/15/2022 - - 345,625 345,625 - 11/15/2022 640,000 5.000% 345,625 985,625 1,331,250 05/15/2023 - - 329,625 329,625 - 11/1512023 675,000 5.000% 329,625 1,004,625 1,334,250 05/15/2024 - - 312,750 312,750 - 11/15/2024 705,000 5.000% 312,750 1,017,750 1,330,500 05/15/2025 - - 295,125 295,125 - 11/15/2025 740,000 5.000% 295,125 1,035,125 1,330,250 05/15/2026 - - 276,625 276,625 - 11/15/2026 780,000 5.000% 276,625 1,056,625 1,333,250 05/15/2027 - - 257,125 257,125 - 11/15/2027 815,000 5.000% 257,125 1,072,125 1,329,250 05/15/2028 - - 236,750 236,750 - 11/15/2028 860,000 5.000% 236,750 1,096,750 1,333,500 05/15/2029 - - 215,250 215,250 - 11/15/2029 900,000 5.000% 215,250 1,115,250 1,330,500 05/15/2030 - - 192,750 192,750 - 11/15/2030 945,000 5.000% 192,750 1,137,750 1,330,500 05/15/2031 - - 169,125 169,125 - 11115/2031 995,000 5.000% 169,125 1,164,125 1,333,250 05/15/2032 - - 144,250 144,250 - 11/15/2032 1,045,000 5.000% 144,250 1,189,250 1,333,500 05/15/2033 - - 118,125 118,125 - 11/15/2033 1,095,000 5.000% 118,125 1,213,125 1,331,250 05/15/2034 - - 90,750 90,750 - 11/15/2034 1,150,000 5.000% 90,750 1,240,750 1,331,500 05/15/2035 - - 62,000 62,000 - 11/15/2035 1,210,000 5.000% 62,000 1,272,000 1,334,000 05/15/2036 - - 31,750 31,750 - 11/15/2036 1,270,000 5.000% 31,750 1,301,750 1,333,500 28,125,000 23,166,695 51,291,695 51,291,695 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 2 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2036 Arbitrage Yield 4.394910% True Interest Cost(TIC) 4.646316% Net Interest Cost(NIC) 4.714039% All-In TIC 4.727596% Average Coupon 4.972287% Average Life(years) 16.566 Duration of Issue(years) 10.803 Par Amount 28,125,000.00 Bond Proceeds 29,510,953.95 Total Interest 23,166,695.00 Net Interest 21,963,475.72 Total Debt Service 51,291,695.00 Maximum Annual Debt Service 2,359,900.00 Average Annual Debt Service 1,703,100.00 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 17,840,000.00 105.339 4.935% 11.116 12,797.00 Term Bond maturing 2031 4,515,000.00 104.353 5.000% 23.215 3,747.45 Term Bond maturing 2036 5,770,000.00 104.105 5.000% 28.215 4,789.10 28,125,000.00 16.566 21,333.55 All-In Arbitrage TIC TIC Yield Par Value 28,125,000.00 28,125,000.00 28,125,000.00 +Accrued Interest +Premium(Discount) 1,385,953.95 1,385,953.95 1,385,953.95 Underwriter's Discount -182,734.67 -182,734.67 Cost of Issuance Expense -250,000.00 Other Amounts -256,458.47 -256,458.47 -256,458.47 Target Value 29,071,760.81 28,821,760.81 29,254,495.48 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.646316% 4.727596% 4.394910% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 3 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2006 195,000 4.000% 3.520% 100.049 - - - 11/15/2007 - 4.000% 3.550% 100.485 11/15/2008 20,000 4.000% 3.580% 100.845 11/15/2009 990,000 4.000% 3.620% 101.107 11/15/2010 1,035,000 4.000% 3.660% 101.285 11/15/2011 1,075,000 4.000% 3.710% 101.336 11/15/2012 875,000 5,000% 3.780% 106.602 11/15/2013 920,000 5.000% 3.870% 106.966 11/15/2014 965,000 5.000% 3.960% 107.154 11/15/2015 1,015,000 5.000% 4.030% 107.335 11/15/2016 1,070,000 5.000% 4.080% 107.558 - - - 11/15/2017 1,115,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11/15/2016 100.000 11/15/2018 1,165,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000 11/15/2019 1,235,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/2020 1,290,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 100.000 11/15/2021 1,335,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 11/15/2022 640,000 5.000% 4.330% 105.436 C 4.521% 11/15/2016 100.000 11/15/2016 100.000 11/15/2023 675,000 5.000% 4.360% 105.185 C 4.560% 11/15/2016 100.000 11/15/2016 100.000 11/15/2024 705,000 5.000% 4.380% 105.018 C 4.589% 11115/2016 100.000 11/15/2016 100.000 11/15/2025 740,000 5.000% 4.400% 104.851 C 4.615% 11/15/2016 100.000 11/15/2016 100.000 11/15/2026 780,000 5.000% 4.420% 104.685 C 4.639% 11/15/2016 100.000 11/15/2016 100.000 17,840,000 Term Bond maturing 2031: 11/15/2027 815,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15l2016 100.000 11/15/2028 860,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2029 900,000 6.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2030 945,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2031 995,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 4,515,000 Term Bond maturing 2036: 11/15/2032 1,045,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2033 1,095,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2034 1,150,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2035 1,210,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2036 1,270,000 5.000% 4.490% 104.105 C 4.742% 11/16/2016 100.000 11/15/2016 100.000 5,770,000 28,125,000 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co. Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 4 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 28,125,000.00 Premium 1,385,953.95 Production 29,510,953.96 104.927836% Underwriter's Discount -182,734.67 -0.649723% Purchase Price 29,328,219.28 104.278113% Accrued Interest Net Proceeds 29,328,219.28 i Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 5 PROOF OF ARBITRAGE YIELD Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Present Value to 10103/2006 Date Debt Service Total @ 4.39491041/6 11/15/2006 195,910.00 195,910.00 194,918.89 05/15/2007 841,935.00 841,935.00 819,663.88 11/15/2007 682,650.00 682,650.00 650,302.23 05115/2008 682,650.00 682,650.00 636,319.40 11/15/2008 702,650.00 702,650.00 640,879.00 05/15/2009 682,250.00 682,250.00 608,892.26 11/15/2009 1,672,250.00 1,672,250.00 1,460,353.61 05/15/2010 662,450.00 662,450.00 566,069.62 11/15/2010 1,697,450.00 1,697,450.00 1,419,298.20 05/15/2011 641,750.00 641,750.00 525,052.17 11/15/2011 1,716,750.00 1,716,750.00 1,374,369.65 05/15/2012 620,250.00 620,250.00 485,873.47 11/15/2012 1,495,250.00 1,495,250.00 1,146,120.15 05/15/2013 598,375.00 598,375.00 448,796.74 11/15/2013 1,518,375.00 1,518,375.00 1,114,333.58 05/15/2014 575,375.00 575,375.00 413,187.41 11/15/2014 1,540,375.00 1,540,375.00 1,082,386.76 05/15/2015 551,250.00 551,250.00 379,022.10 11115/2015 1,566,250.00 1,566,250.00 1,053,748.41 05/15/2016 525,875.00 525,875.00 346,193.01 11/15/2016 21,560,875.00 21,560,875.00 13,888,714.96 40,730,945.00 40,730,945.00 29,254,495.48 Proceeds Summary Delivery date 10/03/2006 Par Value 28,125,000.00 Premium(Discount) 1,385,953.95 Arbitrage expenses -256,458.47 Target for yield calculation 29,254,495.48 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 6 PROOF OF ARBITRAGE YIELD Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Recommended Structure Assumed Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 10/03/2006 Component Date Date Price @ 4.3949104% SERIAL 11/15/2017 11/15/2016 100.000 -24,959.28 SERIAL 11/15/2018 11/15/2016 100.000 -21,115.63 SERIAL 11/15/2019 11/15/2016 100.000 -18,185.38 SERIAL 11/15/2020 11/15/2016 100.000 -14,622.15 SERIAL 11/15/2021 11/15/2016 100.000 -10,633.28 SERIAL 11/15/2022 11/15/2016 100.000 -3,484.80 SERIAL 11/15/2023 11/15/2016 100.000 -1,981.13 SERIAL 11/15/2024 11/15/2016 100.000 -891.83 SERIAL 11/15/2025 11/15/2016 100.000 299.70 SERIAL 11/15/2026 11/15/2016 100.000 1,610.70 TERM31 11/15/2027 11115/2016 100.000 4,388.77 TERM31 11/15/2028 11/15/2016 100.000 4,631.10 TERM31 11/15/2029 11/15/2016 100.000 4,846.50 TERM31 11/15/2030 11/15/2016 100.000 5,088.82 TERM31 11/15/2031 11/15/2016 100.000 5,358.07 TERM36 11/15/2032 11/15/2016 100.000 8,218.92 TERM36 11/15/2033 11/15/2016 100.000 8,612.17 TERM36 11/15/2034 11/15/2016 100.000 9,044.75 TERM36 11/15/2035 11/15/2016 100.000 9,516.65 TERM36 11/15/2036 11/15/2016 100.000 9,988.55 Rejected Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 10/03/2006 Increase Component Date Date Price @ 4.3949104% to NPV SERIAL 11115/2017 -20,752.44 4,206.84 SERIAL 11/15/2018 -12,511.65 8,603.98 SERIAL 11/15/2019 -4,792.85 13,392.53 SERIAL 11/15/2020 3,638.80 18,260.95 SERIAL 11/15/2021 12,497.61 23,130.89 SERIAL 11/15/2022 9,547.11 13,031.91 SERIAL 11/15/2023 13,725.49 15,706.62 SERIAL 11/15/2024 17,474.90 18,366.73 SERIAL 11/15/2025 21,550.09 21,250.39 SERIAL 11/15/2026 25,999.76 24,389.06 TERM31 11/15/2027 31,863.06 27,474.29 TERM31 11/15/2028 35,633.77 31,002.67 TERM31 11115/2029 39,306.55 34,460.05 TERM31 11115/2030 43,298.03 38,209.21 TERM31 11/15/2031 47,631.52 42,273.45 TERM36 11/15/2032 54,670.64 46,451.72 TERM36 11/15/2033 59,347.15 50,734.98 TERM36 11/15/2034 64,400.18 55,355.43 TERM36 11/15/2035 69,847.67 60,331.02 TERM36 11/15/2036 75,408.98 65,420.43 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 7 SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Series 2006— Equipment Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 675,000.00 Premium 8,410.90 683,410.90 Uses: Project Fund Deposits: Construction Fund 552,654.94 Other Fund Deposits: Debt Service Reserve Fund 51,093.00 Capitalized Interest 63,700.06 114,793.06 Delivery Date Expenses: Cost of Issuance 6,000.00 Underwriter's Discount 3,527.83 Insurance @ 50 bps 3,934.75 13,462.58 Other Uses of Funds: Additional Proceeds 2,500.32 683,410.90 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 8 BOND DEBT SERVICE Truckee Donnor Public Utilities District Series 2006 - Equipment Annual Period Debt Debt Ending Principal Coupon Interest Service Service 10103/2006 - - 05/15/2007 - 16,650 16,650 - 11/15/2007 - 13,500 13,500 30,150 05/15/2008 - 13,500 13,500 - 11/15/2008 - 13,500 13,500 27,000 05/15/2009 - - 13,500 13,500 - 11/15/2009 215,000 4.000% 13,500 228,500 242,000 05/15/2010 - - 9,200 9,200 - 11/15/2010 225,000 4.000% 9,200 234,200 243,400 05115/2011 - - 4,700 4,700 - 11/1512011 235,000 4.000% 4,700 239,700 244,400 675,000 111,950 786,950 786,950 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 9 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Series 2006— Equipment Dated Date 10/03/2006 Delivery Date 10/0312006 Last Maturity 11/15/2011 Arbitrage Yield 4.394910% True Interest Cost(TIC) 3.961351% Net Interest Cost(NIC) 3.825527% All-In TIC 4.197594% Average Coupon 4.000000% Average Life(years) 4.146 Duration of Issue(years) 3.830 Par Amount 675,000.00 Bond Proceeds 683,410.90 Total Interest 111,950.00 Net Interest 107,066.93 Total Debt Service 786,950.00 Maximum Annual Debt Service 244,400.00 Average Annual Debt Service 153,801.30 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 675,000.00 101.246 4.000% 4.146 258.10 675,000.00 4.146 258.10 All-In Arbitrage TIC TIC Yield Par Value 675,000.00 675,000.00 675,000.00 +Accrued Interest - +Premium(Discount) 8,410.90 8,410.90 8,410.90 Underwriter's Discount -3,527.83 -3,527.83 Cost of Issuance Expense -6,000.00 Other Amounts -3,934.75 -3,934.75 -3,934.75 Target Value 675,948.32 669,948.32 679,476.15 Target Date 10/03/2006 10/03/2006 10103/2006 Yield 3.961351% 4.197594% 4.394910% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 10 BOND PRICING Truckee Donnor Public Utilities District Series 2006 — Equipment Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 11l15/2007 - 4.000% 3.550% 100.485 11/15/2008 - 4.000% 3.580% 100.845 11/15/2009 215,000 4.000% 3.620% 101.107 11/15/2010 225,000 4.000% 3.660% 101.285 11/15/2011 235,000 4.000% 3.710% 101.336 675,000 Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 675,000.00 Premium 8,410.90 Production 683,410.90 101.246059% Underwriter's Discount -3,527.83 -0.522641% Purchase Price 679,883.07 100.723418% Accrued Interest - Net Proceeds 679,883.07 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee don ner:FIXFIN2) Pagel l PROJECT FUND Truckee Donnor Public Utilities District Series 2006— Equipment Construction Fund (CONST) Interest Scheduled Date Deposit @ 4.3949104% Principal Draws Balance 10/03/2006 552,654.94 - - 552,654.94 10/15/2006 - 809.62 -809.62 - 553,464.56 11/15/2006 - 2,197.30 2,197.30 551,267.26 12/15/2006 2,199.38 2,199.38 549,067.88 01/15/2007 2,211.86 2,211.86 546,856.02 02/15/2007 2,274.44 2,274.44 544,581.58 03/15/2007 - 2,535.81 2,535.81 542,045.77 04/15/2007 12,039.43 -8,596.58 3,442.85 550,642.35 05/15/2007 - 6,047.89 6,047.89 544,594.46 06/15/2007 12,202.85 12,202.85 532,391.61 07/15/2007 24,051.81 24,051.81 508,339.80 08/15/2007 42,324.45 42,324.45 466,015.35 09/15/2007 - 64,132.20 64,132.20 401,883.15 10/1512007 11,001.44 71,554.67 82,556.11 330,328.48 11/15/2007 - 89,843.44 89,843.44 240,485.04 12/15/2007 82,556.11 82,556.11 157,928.93 01/15/2008 64,132.20 64,132.20 93,796.73 02/15/2008 42,324.45 42,324.45 51,472.28 03/15/2008 - 24,051.81 24,051.81 27,420.47 04/15/2008 3,301.43 8,901.42 12,202.85 18,519.05 05/15/2008 - 6,047.89 6,047.89 12,471.16 06/15/2008 - 3,442.85 3,442.85 9,028.31 07/15/2008 - 2,535.81 2,535.81 6,492.50 08/15/2008 - 2,274.44 2,274.44 4,218.06 09/15/2008 - - 2,211.86 2,211.86 2,006.20 10/15/2008 - 193.14 2,006.20 2,199.34 - 552,654.94 27,345.06 552,654.94 580,000.00 Average Life(years): 1.1258 Yield To Receipt Date: 4.3927969% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: 12.69 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 12 RESERVE FUND Truckee Donnor Public Utilities District Series 2006 — Equipment Debt Service Reserve Fund (DSRF) Interest Capitalized Date Deposit @ 4.3949104% Principal Interest Debt Service Balance 10/03/2006 51,093 - - 51,093 11/15/2006 - 261.97 -261.97 51,093 05/15/2007 1,122.75 -11122.75 51,093 11/15/2007 1,122.75 -1,122.75 51,093 1,122.75 -1,122.75 51,093 05115/2008 -11/15/2008 1,122.75 -1,122.75 51,093 05/15/2009 1,122.75 -1,122.75 51,093 11/15/2009 1,122.75 -1,122.75 51,093 05/15/2010 1,122.75 - -1,122.75 51,093 11/15/2010 1,122.75 - -1,122.75 51,093 05/15/2011 1,122.75 - - -1,122.75 51,093 11/15/2011 - 1,122.75 51,093 - -52,215.75 - 51,093 11,489.47 51,093 -4,752.97 -57,829.50 Average Life(years): 5.1167 Yield To Receipt Date: 4.3958599% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: -2.20 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 13 RESERVE FUND Truckee Donnor Public Utilities District Series 2006— Equipment Capitalized Interest (CAPO Interest Debt Service Scheduled Date Deposit @ 4.3949104%, Principal Reserve Fund Debt Service Draws Balance - 63,700.06 10/03/2006 63,700.06 - 64,058.69 11/15/2006 - 326.62 -358.63 358.63 -685.25 05/15/2007 1,399.78 18,916.91 1,536.98 -2,936.76 20,453.89 45,141.78 11/15/2007 991.97 15,047.26 1,536.98 -2,528.95 16,584.24 30,094.52 05/15/2008 661.31 15,047.26 1,536.98 -2,198.29 16,584.24 15,047.2- 11/15/2008 - 330.66 15,047.26 1,536.98 -1,867.64 16,584.24 63,700.06 3,710.34 63,700.06 6,506.55 -10,216.89 70,206.61 Average Life(years): 1.3281 Yield To Receipt Date: 4.3793114% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: 12.64 l i i f (Finance 5.019 truckee donner:FIXFIN2) Page 14 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Series 2006— System Improvements Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 19,870,000.00 Premium 956,211.80 20,826,211.80 Uses: Project Fund Deposits: Construction Fund 16,941,038.87 Other Fund Deposits: Debt Service Reserve Fund 1,504,026.53 Capitalized Interest 1,875,140.91 3,379,167.44 Delivery Date Expenses: Cost of Issuance 176,622.22 Underwriter's Discount 132,666.37 Insurance @ 50 bps 196,908.90 506,197.49 Other Uses of Funds: Additional Proceeds -192.00 20,826,211.80 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 15 BOND DEBT SERVICE Truckee Donnor Public Utilities District Series 2006 —System Improvements Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 - 05/15/2007 - 605,905.83 605,905.83 11/15/2007 - 491,275.00 491,275.00 1,097,180.83 05/15/2008 - 491,275.00 491,275.00 - 11/15/2008 - 491,275.00 491,275.00 982,550.00 05/15/2009 - 491,275.00 491,275.00 - 11/15/2009 350,000 4.000% 491,275.00 841,275.00 1,332,550.00 05/15/2010 - - 484,275.00 484,275.00 11/15/2010 365,000 4.000% 484,275.00 849,275.00 1,333,550.00 05/15/2011 - - 476,975.00 476,975.00 1111512011 380,000 4.000% 476,975.00 856,975.00 1,333,950.00 05115/2012 - - 469,375.00 469,375.00 11/15/2012 395,000 5.000% 469,375.00 864,375.00 1,333,750.00 05/15/2013 - - 459,500.00 459,500.00 11/15/2013 415,000 5.000% 459,500.00 874,500.00 1,334,000.00 05115/2014 - - 449,125.00 449,125.00 11/15/2014 435,000 5.000% 449,125.00 884,125.00 1,333,250.00 05/15/2015 438,250.00 438,250.00 11/15/2015 455,000 5.000% 438,250.00 893,250.00 1,331,500.00 05/15/2016 - - 426,875.00 426,875.00 11/15/2016 480,000 5.000% 426,875.00 906,875.00 1,333,750.00 05/15/2017 - - 414,875.00 414,875.00 11/15/2017 500,000 5.000% 414,875.00 914,875.00 1,329,750.00 05/15/2018 - - 402,375.00 402,375.00 11115/2018 525,000 5.000% 402,375.00 927,375.00 1,329,750.00 05/15/2019 389,250.00 389,250.00 11/15/2019 555,000 5.000% 389,250.00 944,250.00 1,333,500.00 05/15/2020 - - 375,375.00 375,375.00 11/15/2020 580,000 5.000% 375,375.00 955,375.00 1,330,750.00 05/15/2021 - - 360,875.00 360,875.00 11/15/2021 610,000 5.000% 360,875.00 970,875.00 1,331,750.00 05/15/2022 - - 345,625.00 345,625.00 11/15/2022 640,000 5.000% 345,625.00 985,625.00 1,331,250.00 05/1512023 - - 329,625.00 329,625.00 11/15/2023 675,000 5.000% 329,625.00 1,004,625.00 1,334,250.00 05/15/2024 - - 312,750.00 312,750.00 11/15/2024 705,000 5.000% 312,750.00 1,017,750.00 1,330,500.00 05/15/2025 - - 295,125.00 295,125.00 11/15/2025 740,000 5.000% 295,125.00 1,035,125.00 1,330,250.00 05/15/2026 - - 276,625.00 276,625.00 11/15/2026 780,000 5.000% 276,625.00 1,056,625.00 1,333,250.00 05/15/2027 - - 257,125.00 257,125.00 11/15/2027 815,000 5.000% 257,125.00 1,072,125.00 1,329,250.00 05/15/2028 - - 236,750.00 236,750.00 11/15/2028 860,000 5.000% 236,750.00 1,096,750.00 1,333,500.00 05/15/2029 - - 215,250.00 215,250.00 11/15/2029 900,000 5.000% 215,250.00 1,115,250.00 1,330,500.00 05/15/2030 - - 192,750.00 192,750.00 11/15/2030 945,000 5.000% 192,750.00 1,137,750.00 1,330,500.00 05/15/2031 - - 169,125.00 169,125.00 11/15/2031 995,000 5.000% 169,125.00 1,164,125.00 1,333,250.00 05/15/2032 - - 144,250.00 144,250.00 11/15/2032 1,045,000 5.000% 144,250.00 1,189,250.00 1,333,500.00 05/15/2033 - - 118,125.00 118,125.00 11/15/2033 1,095,000 5.000% 118,125.00 1,213,125.00 1,331,250.00 05/15/2034 - - 90,750.00 90,750.00 11/15/2034 1,150,000 5.000% 90,750.00 1,240,750.00 1,331,500.00 05/15/2035 - 62,000.00 62,000.00 11/15/2035 1,210,000 5.000% 62,000.00 1,272,000.00 1,334,000.00 05/15/2036 - - 31,750.00 31,750.00 11/15/2036 1,270,000 5.000% 31,750.00 1,301,750.00 1,333,500.00 19,870,000 19,511,780.83 39,381,780.83 39,381,780.83 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 16 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Series 2006— System Improvements Dated Date 10103/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2036 Arbitrage Yield 4.394910% True Interest Cost(TIC) 4.722500% Net Interest Cost(NIC) 4.777850% All-In TIC 4.794469% Average Coupon 4.988399% Average Life(years) 19.685 Duration of Issue(years) 12.218 Par Amount 19,870,000.00 Bond Proceeds 20,826,211.80 Total Interest 19,511,780.83 Net Interest 18,688,235.40 Total Debt Service 39,381,780.83 Maximum Annual Debt Service 1,334,250.00 Average Annual Debt Service 1,307,640.76 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 9,585,000.00 105.455 4.963% 12.888 7,262.40 Term Bond maturing 2031 4,515,000.00 104.353 5.000% 23.215 3,747.45 Term Bond maturing 2036 5,770,000.00 104.105 5.000% 28.215 4,789.10 19,870,000.00 19.685 15,798.95 All-In Arbitrage TIC TIC Yield Par Value 19,870,000.00 19,870,000.00 19,870,000.00 +Accrued Interest - +Premium(Discount) 956,211.80 956,211.80 956,211.80 Underwriter's Discount -132,666.37 -132,666.37 Cost of Issuance Expense -176,622.22 Other Amounts -196,908.90 -196,908.90 -196,908.90 Target Value 20,496,636.53 20,320,014.31 20,629,302.90 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.722500/0 4.794469/0 4.394910% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 17 BOND PRICING Truckee Donnor Public Utilities District Series 2006-System Improvements Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2007 - 4.000% 3.550% 100.485 _ 11/15/2008 4.000% 3.580% 100.945 11/15/2009 350,000 4.000% 3.620% 101.107 11/15/2010 365,000 4.000% 3.660% 101.285 11/15/2011 380,000 4.000% 3.710% 101.336 11/15/2012 395,000 5,000% 3.780% 106.602 11/15/2013 415,000 5.000% 3.870% 106.966 11/15/2014 435,000 5.000% 3.960% 107.154 11/15/2015 455,000 5.000% 4.030% 107.335 11/15/2016 480,000 5.000% 4.080% 107.558 11/15/2017 500,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11115/2016 100.000 11/15/2018 525,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000100.000 11/1512019 555,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/20 19 580,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 11/152021 580,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 100.000 11/15/2022 640,000 5.000% 4.330% 105.436 C 4.521% 11/15/2016 100.000 11/15/2016 100.000 11/15/2023 675,000 5.000% 4.360% 105.185 C 4.560% 11/15/2016 100.000 11/15/2016 100.000 11/15/2024 705,000 5.000% 4.380% 105.018 C 4.589% 11/15/2016 100.000 11/15/2016 11/15/2025 740,000 5.000% 4.400% 104.851 C 4.615% 11/15/2016 100.000 11/15/2016 100.000 11/15/2026 780,000 5.000% 4.420% 104.685 C 4.639% 11/15/2016 100.000 11/15/2016 100.000 9,585,000 Term Bond maturing 2031: 11115I2027 815,000 5.000% 4.460% 104.353 C 4.702% 11/15I2016 100.000 11/1512016 100.0 00 11/15/2028 860,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2029 900,000 5.000% 4.460% 104.353 C 4.702% 11/15l2016 100.000 11/15I2016 100.000 100.000 11/15/2030 945,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2031 995,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 4,515,000 Term Bond maturing 2036: 100.000 11/15I2032 1,045,000 5.000% 4.490% 104.105 C 4.742% 11I15/2016 100.000 11115/2016 100.000 11/15/2033 1,095,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 11115/2034 1,150,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2035 1,210,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 i 11I1512036 1,270,000 5.000% 4.490% 104.105 C 4.742% 11115/2016 100.000 11/15/2016 100.000 5,770,000 - 19,870,000 (Finance 5.019 truckee donner:FIXFIN2) Page 18 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. BOND PRICING Truckee Donnor Public Utilities District Series 2006— System Improvements Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 19,870,000.00 Premium 956,211.80 Production 20,826,211.80 104.812339% underwriter's Discount -132,666.37 -0.667672% Purchase Price 20,693,545.43 104.144667% Accrued Interest Net Proceeds 20,693,545.43 i i f { (Finance 5.019 truckee donner:FIXFIN2) Page 19 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. PROJECT FUND Truckee Donnor Public Utilities District Series 2006 — System Improvements Construction Fund (CONST) Interest Scheduled Date Deposit @ 4.3949104% Principal Draws Balance 10/03/2006 16,941,038.87 - 16,941,038.87 10/15/2006 24,818.12 -24,818.12 - 16,965,856.99 11/15/2006 - 67,355.79 67,355.79 16,898,501.20 12/15/2006 67,419.50 67,419.50 16,831,081.70 01/15/2007 67,802.13 67,802.13 16,763,279.57 02/15/2007 69,720.36 69,720.36 16,693,559.21 03/15/2007 - 77,732.37 77,732.37 16,615,826.84 04/15/2007 369,055.66 -263,518.90 105,536.76 16,879,345.74 05/15/2007 - 185,391.47 185,391.47 16,693,954.27 06/15/2007 - 374,065.05 374,065.05 16,319,889.22 07/15/2007 - 737,282.27 737,282.27 15,582,606.95 08/15/2007 - 1,297,410.19 1,297,410.19 14,285,196.76 09/15/2007 - 1,965,903.14 1,965,903.14 12,319,293.62 10/1512007 337,237.17 2,193,430.94 2,530,668.11 10,125,862.68 11/15/2007 - 2,754,053.47 2,754,053.47 7,371,809.21 12/15/2007 2,530,668.11 2,530,668.11 4,841,141.10 01/15/2008 1,965,903.14 1,965,903.14 2,875,237.96 02/15/2008 1,297,410.19 1,297,410.19 1,577,827.77 03/15/2008 737,282.27 737,282.27 840,545.50 04/15/2008 101,201.69 272,863.36 374,065.05 567,682.14 5/1512008 - 185,391.47 185,391.47 382,290.67 0 /15/2008 105,536.76 105,536.76 276,753.91 0 06/152008 77,732.37 77,732.37 199,021.54 18 08/15/2008 - 69,720.36 67,802.13 161,49 .05 09/15/2008 - 67,802.13 67,802.13 61,499.05 10/15/2008 5,920.49 61,499.05 67,419.54 16,941,038.87 838,233.13 16,941,038.87 17,779,272.00 Average Life(years): 1.1258 Yield To Receipt Date: 4.3927962% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: 389.01 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 20 RESERVE FUND Truckee Donnor Public Utilities District Series 2006—System Improvements Debt Service Reserve Fund (DSRF) Interest Capitalized Date Deposit @ 4.3949104% Principal Interest Debt Service Balance 10/03/2006 1,504,026.53 _ 1,504,026.53 7,711.74 -7,711.74 1,504,026.53 0 /15/2007 -33,050.31 1,504,026.53 33,050.31 /1/1512007 33,050.31 1,504,026.53 33,050.31 -33,050.31 1111512007 _ - 1,504,026.53 33,050.31 11/15/2008 1,504,026.53 11/15/2008 - 33,050.31 - -33,050.31 05/15/2009 33,050.31 -33,050.31 1,504,026.53 11115/2009 33,050.31 -33,050.31 1,504,026.53 0511512010 33,050.31 -33,050.31 1,504,026.53 11/15/2010 33,050.31 -33,050.31 1,504,026.53 05/1512011 33,050.31 33,050.31 1,504,026.53 11/15/2011 33,050.31 -33,050.31 1,504,026.53 05/15/2012 33,050.31 -33,050.31 1,504,026.53 11/15/2012 33,050.31 -33,050.31 1,504,026.53 33,050.31 -33,050.31 1,504,026.53 0511512013 05/ -33,050.31 1,504,026.53 15/2013 33,050.31 05/15/2014 33,050.31 33,050.31 1,504,026.53 11/1512014 33,050.31 -33,050.31 1,504,026.53 05/1512015 33,050.31 -33,050.31 1,504,026.53 11115/2015 33,050.31 -33,050.31 1,504,026.53 05/15/2016 33,050.31 -33,050.31 1,504,026.53 11/1512016 33,050.31 -33,050.31 1,504,026.53 05/1512017 33,050.31 -33,050.31 1,504,026.53 11/15/2017 33,050.31 -33,050.31 1,604,026.53 05/15/2018 33,050.31 -33,050.31 1,504,026.53 11115/2018 33,050.31 -33,050.31 1,504,026.53 05/15/2019 33,050.31 -33,050.31 1,504,026.53 11/15/2019 33,060.31 -33,050.31 1,504,026.53 05/15/2020 33,050.31 -33,050.31 1,504,026.53 11/15/2020 33,050.31 -33,050.31 1,504,026.53 05115/2021 33,050.31 -33,050.31 1,504,026.53 11/15/2021 33,050.31 -33,050.31 1,504,026.53 05/1512022 33,050.31 -33,050.31 1,504,026.53 11/1512022 33,050.31 -33,050.31 1,504,026.53 05/15/2023 33,050.31 -33,050.31 1,504,026.53 11/15/2023 33,050.31 -33,050.31 1,504,026.53 05115/2024 33,050.31 -33,050.31 1,504,026.53 11/1512024 33,050.31 -33,050.31 1,504,026.53 05/15/2025 33,050.31 -33,050.31 1,504,026.53 11/15/2025 33,050.31 -33,050.31 1,504,026.53 05115/2026 33,050.31 -33,050.31 1,504,026.53 11/15/2026 33,050.31 -33,050.31 1,504,026.53 05/15/2027 33,050.31 -33,050.31 1,504,026.53 11/1512027 33,050.31 -33,050.31 1,504,026.53 05/15/2028 33,050.31 -33,050.31 1,504,026.53 11/15/2028 33,050.31 -33,050.31 1,504,026.53 05/15/2029 33,050.31 -33,050.31 1,504,026.53 11/1512029 33,050.31 -33,050.31 1,504,026.53 0511512030 33,050.31 -33,050.31 1,504,026.53 11/15/2030 33,050.31 -33,050.31 1,504,026.53 05/15/2031 33,050.31 -33,050.31 1,504,026.53 11/1512031 33,050.31 -33,050.31 1,504,026.53 05/1512032 33,050.31 -33,050.31 1,504,026.53 11/15/2032 33,050.31 -33,050.31 1,504,026.53 OSl15l2033 33,050.31 -33,050.31 1,504,026.53 33,050.31 1,504,026.53 11115/2033 33,050.31 05115/2034 33,050.31 33,050.31 1,504,026.53 11/15/2034 33,050.31 -33,050.31 1,504,026.53 05/15/2035 33,050.31 -33,050.31 1,504,026.53 11115/2035 33,050.31 -33,050.31 1,504,026.53 05115/2036 33,050.31 -33,050.31 1,504,026.53 11/15/2036 33,050.31 1,504,026.53 -1,537,076.84 1,504,026.53 1,990,730.34 1,504,026.53 -139,912.96 -3,354,843.89 Average Life(years): 30.1167 Yield To Receipt Date: 4.3951660% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: -63.85 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (F inance 5.019 truckee donner:FIXFIN2) Page 21 RESERVE FUND Truckee Donnor Public Utilities District Series 2006 — System Improvements Capitalized Interest (CAPI) Interest Debt Service Scheduled Date Deposit @ 4.3949104% Principal Reserve Fund Debt Service Draws Balance 1,875,140.91 10/03/2006 1,875,140.91 - 1,885,697.86 11/15/2006 - 9,614.59 -10,556.95 10,556.95 -20,171.54 11/15/2006 41,205.38 556,857.85 45,244.09 -86,449.47 602,101.94 1,328,840.01 01/15/2007 29,200.66 442,946.67 45,244.09 -74,444.75 488,190.76 885,893.34 05/15/2008 19,467.11 442,946.67 45,244.09 -64,711.20 488,190.76 442,946.67- 11/15/2008 9,733.55 442,946.67 45,244.09 -54,977.64 488,190.76 1,875,140.91 109,221.29 1,875,140.91 191,533.31 300,754.60 2,066,674.22 Average Life(years): 1.3281 Yield To Receipt Date: 4.3793069% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: 372.15 s {EE¢ f (Finance 5.019 truckee donner:FIXFIN2) Page 22 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/0312006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 7,580,000.00 Premium 421,331.25 8,001,331.25 Other Sources of Funds: DSRF Release 403,642.50 8,404,973.75 Uses: Refunding Escrow Deposits: Cash Deposit 0.23 SLG Purchases 7,659,814.00 7,659,814.23 Other Fund Deposits: Debt Service Reserve Fund 573,755.47 Delivery Date Expenses: Cost of Issuance 67,377.78 Underwriter's Discount 46,540.47 Insurance @ 50 bps 55,614.82 169,533.07 Other Uses of Funds: Additional Proceeds 1,870.98 8,404,973.75 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 23 SAVINGS Truckee Donnor Public Utilities District Fixed Rate Refunding Present Value Prior Refunding to 10/03/2006 Date Debt Service Debt Service Savings @ 4.3949104% 11/15/2006 199,177.50 195,910.00 3,267.50 3,250.97 11/15/2007 398,355.00 397,254.17 1,100.83 625.78 11/15/2008 398,355.00 375,750.00 22,605.00 21,044.72 11/15/2009 803,355.00 779,950.00 23,405.00 20,855.75 11/15/2010 807,092.50 782,950.00 24,142.50 20,546.00 11/15/2011 799,302.50 780,150.00 19,152.50 15,633.22 11/15/2012 805,495.00 781,750.00 23,745.00 18,442.80 11/15/2013 804,845.00 782,750.00 22,095.00 16,433.98 11/15/2014 802,345.00 782,500.00 19,845.00 14,136.45 11/15/2015 808,470.00 786,000.00 22,470.00 15,283.56 11/15/2016 807,670.00 788,000.00 19,670.00 12,809.90 11/15/2017 805,220.00 783,500.00 21,720.00 13,509.31 11/15/2018 801,740.00 777,750.00 23,990.00 14,257.37 11/15/2019 806,640.00 785,750.00 20,890.00 11,878.84 11/15/2020 804,380.00 781,750.00 22,630.00 12,296.05 11/15/2021 785,230.00 761,250.00 23,980.00 12,451.89 11,437,672.50 11,122,964.17 314,708.33 223,456.58 Savings Summary PV of savings from cash flow 223,456.58 Less:Prior funds on hand -403,642.50 Plus:Refunding funds on hand 575,626.45 Net PV Savings 395,440.53 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 24 SUMMARY OF REFUNDING RESULTS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/03/2006 Delivery Date 10/03/2006 Arbitrage yield 4.394910% Escrow yield 5.262766% Bond Par Amount 7,580,000.00 True Interest Cost 4.347464% Net Interest Cost 4.401810% Average Coupon 4.922538% Average Life 9.495 Par amount of refunded bonds 7,360,000.00 Average coupon of refunded bonds 5.419457% Average life of refunded bonds 9.840 PV of prior debt to 10/03/2006 @ 4.394910% 8,094,934.41 Net PV Savings 395,440.53 Percentage savings of refunded bonds 5.372833% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 25 BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate Refunding Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 - - - - 11/15/2006 195,000 4.000% 910.00 195,910.00 195,910.00 05/15/2007 - - 219,379.17 219,379.17 - 11/15/2007 177,875.00 177,875.00 397,254.17 05115/2008 177,875.00 177,875.00 - 11115/2008 20,000 4.000% 177,875.00 197,875.00 375,750.00 05/15/2009 - - 177,475.00 177,475.00 - 11/15/2009 425,000 4.000% 177,475.00 602,475.00 779,950.00 05/15/2010 - - 168,975.00 168,975.00 - 11/15/2010 445,000 4.000% 168,975.00 613,975.00 782,950.00 05/15/2011 - - 160,075.00 160,075.00 - 11/15/2011 460,000 4.000% 160,075.00 620,075.00 780,150.00 05/15/2012 - - 150,875.00 150,875.00 - 11/15/2012 480,000 5.000% 150,875.00 630,875.00 781,750.00 05/15/2013 - - 138,875.00 138,875.00 - 11/15/2013 505,000 5.000% 138,875.00 643,875.00 782,750.00 05/15/2014 - - 126,250.00 126,250.00 - 11/15/2014 530,000 5.000% 126,250.00 656,250.00 782,500.00 05/15/2015 - - 113,000.00 113,000.00 - 11/15/2015 560,000 5.000% 113,000.00 673,000.00 786,000.00 05/15/2016 - - 99,000.00 99,000.00 - 11/15/2016 590,000 5.000% 99,000.00 689,000.00 788,000.00 05/15/2017 - - 84,250.00 84,250.00 - 11/15/2017 615,000 5.000% 84,250.00 699,250.00 783,500.00 05/15/2018 - - 68,875.00 68,875.00 - 11/15/2018 640,000 5.000% 68,875.00 708,875.00 777,750.00 05/15/2019 - - 52,875.00 52,875.00 - 11/15/2019 680,000 5.000% 52,875.00 732,875.00 785,750.00 05/15/2020 - - 35,875.00 35,875.00 - 11/15/2020 710,000 5.000% 35,875.00 745,875.00 781,750.00 05/15/2021 - - 18,125.00 18,125.00 - 11/15/2021 725,000 5.000% 18,125.00 743,125.00 761,250.00 7,580,000 3,542,964.17 11,122,964.17 11,122,964.17 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 26 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2021 Arbitrage Yield 4.394910% True Interest Cost(TIC) 4.347464% Net Interest Cost(NIC) 4.401810% All-In TIC 4,463284% Average Coupon 4.922538% Average Life(years) 9.495 Duration of Issue(years) 7.516 Par Amount 7,580,000.00 Bond Proceeds 8,001,331.25 Total Interest 3,542,964.17 Net Interest 3,168,173.39 Total Debt Service 11,122,964.17 Maximum Annual Debt Service 788,000.00 Average Annual Debt Service 735,807.99 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 7,580,000.00 105.558 4.923% 9.495 5,276.50 7,580,000.00 9.495 5,276.50 All-In Arbitrage TIC TIC Yield Par Value 7,580,000.00 7,580,000.00 7,580,000.00 +Accrued Interest - - +Premium(Discount) 421,331.25 421,331.25 421,331.25 Underwriter's Discount -46,540.47 -46,540.47 Cost of Issuance Expense -67,377.78 Other Amounts -55,614.82 -55,614.82 -55,614.82 Target Value 7,899,175.96 7,831,798.18 7,945,716.43 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.347464% 4.463284% 4.394910% Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 27 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate Refunding Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2006 195,000 4.000% 3.520% 100.049 11/15/2007 - 4.000% 3.550% 100.485 11/15/2008 20,000 4.000% 3.580% 100.845 11/15/2009 425,000 4.000% 3.620% 101.107 _ 11/15/2010 445,000 4.000% 3.660% 101.285 - - 11/15/2011 460,000 4.000% 3.710% 101.336 11/15/2012 480,000 5.000% 3.780% 106.602 11/15/2013 505,000 5.000% 3.870% 106.966 11/15/2014 530,000 5.000% 3.960% 107.154 _ 11/15/2015 560,000 5.000% 4.030% 107.335 - 11/15/2016 590,000 5.000% 4.080% 107.558 - - - - _ 11/15/2017 615,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11/15/2016 100.000 11/15/2018 640,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000 11/15/2019 680,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/2020 710,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 100.000 11/15/2021 725,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 7,580,000 Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 7,580,000.00 Premium 421,331.25 Production 8,001,331.25 105.558460% Underwriter's Discount -46,540.47 -0.613990% Purchase Price 7,954,790.78 104.944469% Accrued Interest Net Proceeds 7,954,790.78 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 28 RESERVE FUND Truckee Donnor Public Utilities District Fixed Rate Refunding Debt Service Reserve Fund (DSRF) Interest Date Deposit @ 4.3949104% Principal CAPI Debt Service Balance 10/03/2006 573,755.47 573,755.47 11/15/2006 - 2,941.87 -2,941.87 573,755.47 05/15/2007 12,608.02 -12,608.01 573,755.47 11/15/2007 12,608.02 -12,608.01 573,755.47 05/15/2008 12,608.02 -12,608.01 573,755.47 11/15/2008 12,608.02 -12,608.01 573,755.47 05/15/2009 12,608.02 -12,608.01 573,755.47 11/15/2009 12,608.02 -12,608.01 573,755.47 05/15/2010 12,608.02 -12,608.01 573,755.47 11/15/2010 12,608.02 -12,608.01 573,755.47 05/15/2011 12,608.02 -12,608.01 573,755.47 11/15/2011 12,608.02 -12,608.01 573,755.47 05/15/2012 12,608.02 -12,608.01 573,755.47 11/15/2012 12,608.02 - -12,608.01 573,755.47 05/15/2013 12,608.02 - -12,608.01 573,755.47 11/15/2013 12,608.02 - -12,608.01 573,755.47 05/15/2014 12,608.02 - -12,608.01 573,755.47 11/15/2014 12,608.02 - -12,608.01 573,755.47 05/15/2015 12,608.02 - -12,608.01 573,755.47 11/15/2015 12,608.02 - -12,608.01 573,755.47 05/15/2016 12,608.02 - -12,608.01 573,755.47 11/15/2016 12,608.02 - -12,608.01 573,755.47 05/15/2017 12,608.02 - -12,608.01 573,755.47 11/15/2017 12,608.02 - -12,608.01 573,755.47 05/15/2018 12,608.02 - -12,608.01 573,755.47 11/15/2018 12,608.02 - -12,608.01 573,755.47 05/15/2019 12,608.02 - -12,608.01 573,755.47 11/15/2019 12,608.02 - -12,608.01 573,755.47 05/15/2020 12,608.02 - -12,608.01 573,755.47 11/15/2020 12,608.02 - -12,608.01 573,755.47 05/15/2021 12,608.02 - -12,608.01 573,755.47 11/15/2021 - 12,608.02 573,755.47 -586,363.49 - 573,755.47 381,182.47 573,755.47 -53,373.91 -901,563.74 Average Life(years): 15.1167 Yield To Receipt Date: 4.3952977% Arbitrage Yield: 4.3949104% Value of Negative Arbitrage: -24.35 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 29 ESCROW REQUIREMENTS Truckee Donnor Public Utilities District Fixed Rate Refunding Period Principal Redemption Ending Interest Redeemed Premium Total 11115/2006 199,177.50 7,360,000.00 147,200.00 7,706,377.50 199,177.50 7,360,000.00 147,200.00 7,706,377.50 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 30 ESCROW COST DETAIL Truckee Donnor Public Utilities District Fixed Rate Refunding Type of Maturity Par Total Security Date Amount Rate Cost SLG 11/15/2006 7,659,814 5.160% 7,659,814.00 7,659,814 7,659,814.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost Yield 10/03/2006 7,659,814 0.23 7,659,814.23 5.262766% 7,659,814 0.23 7,659,814.23 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 31 ESCROW DESCRIPTIONS DETAIL Truckee Donnor Public Utilities District Fixed Rate Refunding Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Oct 3,2006: SLG Certificate 11/15/2006 11/15/2006 7,659,814 5.160% 5.160% 7,659,814 SLGS Summary SLGS Rates File 04AUG06 Total Certificates of Indebtedness 7,659,814.00 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 32 ESCROW CASH FLOW Truckee Donnor Public Utilities District Fixed Rate Refunding Prior Debt (DEBT) - BP Present Value Net Escrow to 10/03/2006 Date Principal Interest Receipts @ 5.2627661% 11/15/2006 7,659,814.00 46,563.27 7,706,377.27 7,659,814.00 7,659,814.00 46,563.27 7,706,377.27 7,659,814.00 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 7,659,814.00 Target for yield calculation 7,659,814.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 33 PROOF OF COMPOSITE ESCROW YIELD Truckee Donnor Public Utilities District Fixed Rate Refunding All restricted escrows funded by bond proceeds Present Value Security to 10/03/2006 Date Receipts @ 5.2627661% 11/15/2006 7,706,377.27 7,659,814.00 7,706,377.27 7,659,814.00 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 7,659,814.00 Target for yield calculation 7,659,814.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co. Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 34 ESCROW SUFFICIENCY Truckee Donnor Public Utilities District Fixed Rate Refunding Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 10/03/2006 0.23 0.23 0.23 11/15/2006 7,706,377.50 7,706,377.27 -0.23 - 7,706,377.50 7,706,377.50 0.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 35 SUMMARY OF BONDS REFUNDED Truckee Donnor Public Utilities District Fixed Rate Refunding Maturity Interest Par Call Call Bond Date Rate Amount Date Price Series 1996 COPs, 1996: SERIAL 11/15/2009 5.250% 405,000.00 11/15/2006 102.000 11/15/2010 5.300% 430,000.00 11/15/2006 102.000 11/15/2011 5.350% 445,000.00 11/15/2006 102.000 11/15/2012 5.400% 475,000.00 11/15/2006 102.000 TERM16 11/15/2013 5.500% 500,000.00 11/15/2006 102.000 11/15/2014 5.500% 525,000.00 11/15/2006 102.000 11/15/2015 5.500% 560,000.00 11/15/2006 102.000 11/15/2016 5.500% 590,000.00 11/15/2006 102.000 TERM21 11/15/2017 5.400% 620,000.00 11/15/2006 102.000 11/15/2018 5.400% 650,000.00 11/15/2006 102.000 11/15/2019 5.400% 690,000.00 11/15/2006 102.000 11/15/2020 5.400% 725,000.00 11/15/2006 102.000 11/15/2021 5.400% 745,000.00 11/15/2006 102.000 7,360,000.00 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 36 PRIOR BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate Refunding Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 11/15/2006 199,177.50 199,177.50 199,177.50 05/15/2007 199,177.50 199,177.50 - 11/15/2007 199,177.50 199,177.50 398,355.00 05/15/2008 199,177.50 199,177.50 - 11/15/2008 199,177.50 199,177.50 398,355.00 05/15/2009 199,177.50 199,177.50 - 11/15/2009 405,000 5.250% 199,177.50 604,177.50 803,355.00 05/15/2010 - - 188,546.25 188,546.25 - 11/15/2010 430,000 5.300% 188,546.25 618,546.25 807,092.50 05/15/2011 - - 177,151.25 177,151.25 - 11/15/2011 445,000 5.350% 177,151.25 622,151.25 799,302.50 05/15/2012 - - 165,247.50 165,247.50 - 11/15/2012 475,000 5.400% 165,247.50 640,247.50 805,495.00 05/15/2013 - - 152,422.50 152,422.50 - 11/15/2013 500,000 5.500% 152,422.50 652,422.50 804,845.00 05/15/2014 - - 138,672.50 138,672.50 - 11/15/2014 525,000 5.500% 138,672.50 663,672.50 802,345.00 05/15/2015 - - 124,235.00 124,235.00 - 11/15/2015 560,000 5.500% 124,235.00 684,235.00 808,470.00 05/15/2016 - - 108,835.00 108,835.00 - 11/15/2016 590,000 5,500% 108,835.00 698,835.00 807,670.00 05/15/2017 - - 92,610.00 92,610.00 - 11/15/2017 620,000 5.400% 92,610.00 712,610.00 805,220.00 05/15/2018 - - 75,870.00 75,870.00 - 11/15/2018 650,000 5.400% 75,870.00 725,870.00 801,740.00 05/15/2019 - - 58,320.00 58,320.00 - 11/15/2019 690,000 5.400% 58,320.00 748,320.00 806,640.00 05/15/2020 - - 39,690.00 39,690.00 - 11/15/2020 725,000 5.400% 39,690.00 764,690.00 804,380.00 05/15/2021 - - 20,115.00 20,115.00 - 11/15/2021 745,000 5,400% 20,115.00 765,115.00 785,230.00 7,360,000 4,077,672.50 11,437,672.50 11,437,672.50 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN2) Page 37 Appendix SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: 5YRNM5 30YNM5 FIXREF5 Total Bond Proceeds: Par Amount 675,000.00 19,860,000.00 7,765,000.00 28,300,000.00 Premium 8,410.90 955,747.30 407.357.45 1,371,515.65 683,410.90 20,815,747.30 8,172,357.45 29,671,515.65 Other Sources of Funds: DSF Release - 577,621.25 577,621.25 DSRF Release 808,470.00 808,470.00 1,386,091.25 1,386,091.25 683,410.90 20,815,747.30 9,558,448.70 31,057,606.90 Uses: 5YRNM5 30YNM5 FIXREF5 Total Project Fund Deposits: Construction Fund 552,658.42 16,941,145.76 - 17,493,804.18 Refunding Escrow Deposits: Cash Deposit _ 0.27 0.27 SLG Purchases 8,801,418.00 8,801,418.00 8,801,418.27 8,801,418.27 Other Fund Deposits: Debt Service Reserve Fund 50,829.37 1,495,513.00 584,726.01 2,131,068.38 Capitalized Interest 63,690.44 1,873,914.36 - 1,937,604.80 114,519.81 3,369,427.36 584,726.01 4,068,673.18 Delivery Date Expenses: Cost of Issuance 5,962.90 175,441.70 68,595.40 250,000.00 Underwriter's Discount 3,520.22 132,373.71 46,474.71 182,368.64 Insurance @ 50 bps 3,934.75 196,801.11 55,986.84 256,722.70 13,417.87 504,616.52 171,056.95 689,091.34 Other Uses of Funds: Additional Proceeds 2,814.80 557.66 1,247.47 4,619.93 683,410.90 20,815,747.30 9,558,448.70 31,057,606.90 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 1 BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 05/15/2007 - - 849,365.83 849,365.83 11/15/2007 340,000 4.000% 688,675.00 1,028,675.00 1,878,040.83 05/15/2008 - - 681,875.00 681,875.00 - 11/15/2008 390,000 4.000% 681,875.00 1,071,875.00 1,753,750.00 05/15/2009 - - 674,075.00 674,075.00 11/15/2009 970,000 4.000% 674,075.00 1,644,075.00 2,318,150.00 05/15/2010 - 654,675.00 654,675.00 11/15/2010 1,015,000 4.000% 654,675.00 1,669,675.00 2,324,350.00 05/15/2011 634,375.00 634,375.00 11/15/2011 1,050,000 4.000% 634,375.00 1,684,375.00 2,318,750.00 05/15/2012 - 613,375.00 613,375.00 11/15/2012 855,000 5.000% 613,375.00 1,468,375.00 2,081,750.00 05/15/2013 - 592,000.00 592,000.00 11/15/2013 900,000 5.000% 592,000.00 1,492,000.00 2,084,000.00 05/15/2014 - 569,500.00 569,500.00 11/15/2014 940,000 5.000% 569,500.00 1,509,500.00 2,079,000.00 05/15/2015 - 546,000.00 546,000.00 11/15/2015 990,000 5.000% 546,000.00 1,536,000.00 2,082,000.00 05/15/2016 - 521,250.00 521,250.00 11/15/2016 1,040,000 5.000% 521,250.00 1,561,250.00 2,082,500.00 05/15/2017 - - 495,250.00 495,250.00 11/15/2017 1,085,000 5.000% 495,250.00 1,580,250.00 2,075,500.00 05/15/2018 - - 468,125.00 468,125.00 11/15/2018 1,140,000 5.000% 468,125.00 1,608,125.00 2,076,250.00 05/15/2019 - 439,625.00 439,625.00 11/15/2019 1,205,000 5.000% 439,625.00 1,644,625.00 2,084,250.00 05/15/2020 - 409,500.00 409,500.00 11/15/2020 1,260,000 5.000% 409,500.00 1,669,500.00 2,079,000.00 05/15/2021 378,000.00 378,000.00 11/15/2021 1,305,000 5.000% 378,000.00 1,683,000.00 2,061,000.00 05/15/2022 - 345,375.00 345,375.00 11/15/2022 640,000 5.000% 345,375.00 985,375.00 1,330,750.00 05/15/2023 - 329,375.00 329,375.00 11/15/2023 670,000 5.000% 329,375.00 999,375.00 1,328,750.00 05/15/2024 - - 312,625.00 312,625.00 11/15/2024 705,000 5.000% 312,625.00 1,017,625.00 1,330,250.00 05/15/2025 - - 295,000.00 295,000.00 11/15/2025 740,000 5.000% 295,000.00 1,035,000.00 1,330,000.00 05/15/2026 - 276,500.00 276,500.00 11/15/2026 780,000 5.000% 276,500.00 1,056,500.00 1,333,000.00 05/15/2027 - - 257,000.00 257,000.00 11/15/2027 815,000 5.000% 257,000.00 1,072,000.00 1,329,000.00 05/15/2028 - 236,625,00 236,625.00 11/15/2028 860,000 5.000% 236,625.00 1,096,625.00 1,333,250.00 05/15/2029 - 215,125.00 215,125.00 11/15/2029 900,000 5.000% 215,125.00 1,115,125.00 1,330,250.00 05/15/2030 - 192,625.00 192,625.00 11/15/2030 945,000 5.000% 192,625.00 1,137,625.00 1,330,250.00 05/15/2031 - 169,000.00 169,000.00 11/15/2031 995,000 5.000% 169,000.00 1,164,000.00 1,333,000.00 05/15/2032 144,125.00 144,125.00 11/15/2032 1,045,000 5.000% 144,125.00 1,189,125.00 1,333,250.00 05/15/2033 - - 118,000.00 118,000.00 11/15/2033 1,095,000 5.000% 118,000.00 1,213,000.00 1,331,000.00 05/15/2034 - - 90,625.00 90,625.00 11/15/2034 1,150,000 5.000% 90,625.00 1,240,625.00 1,331,250.00 05/15/2035 - 61,875.00 61,875.00 11/15/2035 1,205,000 5.000% 61,875.00 1,266,875.00 1,328,750.00 05/15/2036 31,750.00 31,750.00 11/15/2036 1,270,000 5.000% 31,750.00 1,301,750.00 1,333,500.00 28,300,000 23,044,540.83 51,344,540.83 51,344,540.83 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 2 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2036 Arbitrage Yield 4.394329% True Interest Cost(TIC) 4.646488% Net Interest Cost(NIC) 4.713804% All-In TIC 4.728190% Average Coupon 4.970281% Average Life(years) 16.383 Duration of Issue(years) 10.689 Par Amount 28,300,000.00 Bond Proceeds 29,671,515.65 Total Interest 23,044,540.83 Net Interest 21,855,393.82 Total Debt Service 51,344,540.83 Maximum Annual Debt Service 2,324,350.00 Average Annual Debt Service 1,704,854.70 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 18,020,000.00 105.207 4.930% 10.887 12,667.55 Term Bond maturing 2031 4,515,000.00 104.353 5.000% 23.215 3,747.45 Term Bond maturing 2036 5,765,000.00 104.105 5.000% 28.214 4,784.95 28,300,000.00 16.383 21,199.95 All-In Arbitrage TIC TIC Yield Par Value 28,300,000.00 28,300,000.00 28,300,000.00 +Accrued Interest +Premium(Discount) 1,371,515.65 1,371,515.65 1,371,515.65 Underwriter's Discount -182,368.64 -182,368.64 Cost of Issuance Expense -250,000.00 Other Amounts -256,722.70 -256,722.70 -256,722.70 Target Value 29,232,424.31 28,982,424.31 29,414,792.95 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.646488% 4.728190% 4.394329% Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 3 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2006 - 4.000% 3.520% 100.049 11/15/2007 340,000 4.000% 3.550% 100.485 11/15/2008 390,000 4.000% 3.580% 100.845 11/15/2009 970,000 4.000% 3.620% 101.107 11/15/2010 1,015,000 4.000% 3.660% 101.285 11/15/2011 1,050,000 4.000% 3.710% 101.336 11/15/2012 855,000 5.000% 3.780% 106.602 11/15/2013 900,000 5.000% 3.870% 106.966 11/15/2014 940,000 5.000% 3.960% 107.154 11/15/2015 990,000 5.000% 4.030% 107.335 11/15/2016 1,040,000 6.000% 4.080% 107.558 11/15/2017 1,085,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11/15/2016 100.000 11/15/2018 1,140,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000 11/15/2019 1,205,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/2020 1,260,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 100.000 11/15/2021 1,305,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 11/15/2022 640,000 5.000% 4.330% 105.436 C 4.521% 11/15/2016 100.000 11/15/2016 100.000 11/15/2023 670,000 5.000% 4.360% 105.185 C 4.560% 11/15/2016 100.000 11/15/2016 100.000 11/15/2024 705,000 5.000% 4.380% 105.018 C 4.589% 11/15/2016 100.000 11/15/2016 100.000 11/15/2025 740,000 5.000% 4.400% 104.851 C 4.615% 11/15/2016 100.000 11/15/2016 100.000 11/15/2026 780,000 5.000% 4.420% 104.685 C 4.639% 11/15/2016 100.000 11/15/2016 100.000 18,020,000 Term Bond maturing 2031: 11/15/2027 815,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2028 860,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2029 900,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2030 945,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2031 995,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 4,515,000 Term Bond maturing 2036: 11/15/2032 1,045,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2033 1,095,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2034 1,150,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2035 1,205,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2036 1,270,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 5,765,000 28,300,000 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFINS) Page 4 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate 2006 Financing t Alternative 1 Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 28,300,000.00 Premium 1,371,515.65 Production 29,671,515.65 104.846345% Underwriter's Discount -182,368.64 -0.644412% Purchase Price 29,489,147.01 104.201933% Accrued Interest Net Proceeds 29,489,147.01 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co. Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 5 PROOF OF ARBITRAGE YIELD Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Present Value to 10/03/2006 Date Debt Service Total @ 4.3943289% 05/15/2007 849,365.83 849,365.83 826,901.05 11/15/2007 1,028,675.00 1,028,675.00 979,936.86 05/15/2008 681,875.00 681,875.00 635,602.84 11/15/2008 1,071,875.00 1,071,875.00 977,656.65 05/15/2009 674,075.00 674,075.00 601,605.22 11/15/2009 1,644,075.00 1,644,075.00 1,435,774.22 05/15/2010 654,675.00 654,675.00 559,437.32 11/15/2010 1,669,675.00 1,669,675.00 1,396,107.24 05/15/2011 634,375.00 634,375.00 519,031.90 11/15/2011 1,684,375.00 1,684,375.00 1,348,490.62 05/15/2012 613,375.00 613,375.00 480,503.29 11/15/2012 1,468,375.00 1,468,375.00 1,125,559.43 05/15/2013 592,000.00 592,000.00 444,032.04 11/15/2013 1,492,000.00 1,492,000.00 1,095,021.34 05/15/2014 569,500.00 569,500.00 408,986.19 11/15/2014 1,509,500.00 1,509,500.00 1,060,740.58 05/15/2015 546,000.00 546,000.00 375,430.77 11/15/2015 1,536,000.00 1,536,000.00 1,033,450.29 05/15/2016 521,250.00 521,250.00 343,167.06 11/15/2016 21,371,250.00 21,371,250.00 13,767,358.04 40,812,290.83 40,812,290.83 29,414,792.95 Proceeds Summary Delivery date 10/03/2006 Par Value 28,300,000.00 Premium(Discount) 1,371,515.65 Arbitrage expenses -256,722.70 Target for yield calculation 29,414,792.95 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 6 PROOF OF ARBITRAGE YIELD Truckee Donnor Public Utilities District Fixed Rate 2006 Financing Alternative 1 Assumed Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 10/03/2006 Component Date Date Price @ 4.3943289% SERIAL 11/15/2017 11/15/2016 100.000 -24,235.14 SERIAL 11/15/2018 11/15/2016 100.000 -20,607.25 SERIAL 11/15/2019 11/15/2016 100.000 -17,685.23 SERIAL 11/15/2020 11/15/2016 100.000 -14,221.03 SERIAL 11/15/2021 11/15/2016 100.000 -10,331.08 SERIAL 11/15/2022 11/15/2016 100.000 -3,453.78 SERIAL 11/15/2023 11/15/2016 100.000 -1,933.98 SERIAL 11/15/2024 11/15/2016 100.000 -857.66 SERIAL 11/15/2025 11/15/2016 100.000 335.57 SERIAL 11/15/2026 11/15/2016 100.000 1,648.50 TERM31 11/15/2027 11/15/2016 100.000 4,428.28 TERM31 11/15/2028 11/15/2016 100.000 4,672.78 TERM31 11/15/2029 11/15/2016 100.000 4,890.12 TERM31 11/15/2030 11/15/2016 100.000 5,134.63 TERM31 11/15/2031 11/15/2016 100.000 5,406.30 TERM36 11/15/2032 11/15/2016 100.000 8,269.57 TERM36 11/15/2033 11/15/2016 100.000 8,665.25 TERM36 11/15/2034 11/15/2016 100.000 9,100.49 TERM36 11/15/2035 11/15/2016 100.000 9,535.73 TERM36 11/15/2036 11/15/2016 100.000 10,050.10 Rejected Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 10/03/2006 Increase Component Date Date Price @ 4.3943289% to NPV SERIAL 11/15/2017 -20,137.30 4,097.84 SERIAL 11/15/2018 -12,179.26 8,427.99 SERIAL 11/15/2019 -4,604.58 13,080.65 SERIAL 11/15/2020 3,633.63 17,854.66 SERIAL 11/15/2021 12,303.39 22,634.47 SERIAL 11/15/2022 9,591.63 13,045.41 SERIAL 11/15/2023 13,672.49 15,606.47 SERIAL 11/15/2024 17,528.20 18,385.86 SERIAL 11/15/2025 21,608.14 21,272.57 SERIAL 11/15/2026 26,063.09 24,414.59 TERM31 11/15/2027 31,931.38 27,503.10 TERM31 11/15/2028 - 35,708.04 31,035.26 TERM31 11/15/2029 39,386.48 34,496.36 TERM31 11/15/2030 43,384.17 38,249.54 TERM31 11/15/2031 47,724.48 42,318.18 TERM36 11/15/2032 54,770.54 46,500.97 TERM36 11/15/2033 59,454.13 50,788.88 TERM36 11/15/2034 64,514.85 55,414.36 TERM36 11/15/2035 69,681.54 60,145.81 TERM36 11/15/2036 75,540.46 65,490.36 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 7 SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Series 2006— Equipment Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 675,000.00 Premium 8,410.90 683,410.90 Uses: Project Fund Deposits: Construction Fund 552,658.42 Other Fund Deposits: Debt Service Reserve Fund 50,829.37 Capitalized Interest 63,690.44 114,5 99.81 Delivery Date Expenses: Cost of Issuance 5,962.90 Underwriter's Discount 3,520.22 Insurance @ 50 bps 3,934.75 13,417.87 Other Uses of Funds: Additional Proceeds 2,814.80 683,410.90 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 8 BOND DEBT SERVICE Truckee Donnor Public Utilities District Series 2006- Equipment Annual Period Debt Debt Ending Principal Coupon Interest Service Service 10/03/2006 _ _ 05/15/2007 16,650 16,650 - 11/15/2007 13,500 13,500 30,150 05/15/2008 13,500 13,500 11/15/2008 13,500 13,500 27,000 05/15/2009 - - 13,500 13,500 - 11/15/2009 215,000 4.000% 13,500 228,500 242,000 05/15/2010 - - 9,200 9,200 - 11/15/2010 225,000 4.000% 9,200 234,200 243,400 05/15/2011 - - 4,700 4,700 - 11/15/2011 235,000 4.000% 4,700 239,700 244,400 675,000 111,950 786,950 786,950 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 9 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Series 2006— Equipment Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2011 Arbitrage Yield 4.394329% True Interest Cost(TIC) 3.961053% Net Interest Cost(NIC) 3.825255% All-In TIC 4.195824% Average Coupon 4.000000% Average Life(years) 4.146 Duration of Issue(years) 3.830 Par Amount 675,000.00 Bond Proceeds 683,410.90 Total Interest 111,950.00 Net Interest 107,059.32 Total Debt Service 786,950.00 Maximum Annual Debt Service 244,400.00 Average Annual Debt Service 153,801.30 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 675,000.00 101.246 4.000% 4.146 258.10 675,000.00 4.146 258.10 All-in Arbitrage TIC TIC Yield Par Value 675,000.00 675,000.00 675,000.00 +Accrued Interest - +Premium(Discount) 8,410.90 8,410.90 8,410.90 Underwriter's Discount -3,520.22 -3,520.22 Cost of Issuance Expense -5,962.90 Other Amounts -3,934.75 -3,934.75 -3,934.75 Target Value 675,955.93 669,993.03 679,476.15 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 3.961053% 4.195824% 4.394329% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee don ner:FIXFIN5) Page 10 BOND PRICING Truckee Donnor Public Utilities District Series 2006— Equipment Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 11/15/2007 - 4.000% 3.550% 100.485 11/15/2008 - 4.000% 3.580% 100.845 11/15/2009 215,000 4.000% 3.620% 101.107 11/15/2010 225,000 4.000% 3.660% 101.285 11/15/2011 235,000 4.000% 3.710% 101.336 675,000 Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 675,000.00 Premium 8,410.90 Production 683,410.90 101.246059% Underwriter's Discount -3,520.22 -0.521514% Purchase Price 679,890.68 100.724545% Accrued Interest - Net Proceeds 679,890.68 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 11 PROJECT FUND Truckee Donnor Public Utilities District Series 2006— Equipment Construction Fund MONST) Interest Scheduled Date Deposit @ 4.3943289% Principal Draws Balance 10/03/2006 552,658.42 552,658.42 10/15/2006 - 809.52 -809.52 553,467.94 11/15/2006 - 2,197.30 2,197.30 551,270.64 12/15/2006 2,199.38 2,199.38 549,071.26 01/15/2007 2,211.86 2,211.86 546,859.40 02/15/2007 2,274.44 2,274.44 544,584.96 03/15/2007 2,535.81 2,535.81 542,049.15 04/15/2007 12,037.91 -8,595.06 3,442.85 550,644.21 05/15/2007 - 6,047.89 6,047.89 544,596.32 06/15/2007 12,202.85 12,202.85 532,393.47 07/15/2007 24,051.81 24,051.81 508,341.66 08/15/2007 42,324.45 42,324.45 466,017.21 09/15/2007 64,132.20 64,132.20 401,885.01 10/15/2007 11,000.02 71,556.09 82,556.11 330,328.92 11/15/2007 - 89,843.44 89,843.44 240,485.48 12/15/2007 82,556.11 82,556.11 157,929.37 01/15/2008 64,132.20 64,132.20 93,797.17 02/15/2008 42,324.45 42,324.45 51,472.72 03/15/2008 24,051.81 24,051.81 27,420.91 04/15/2008 3,301.01 8,901.84 12,202.85 18,519.07 05/15/2008 - 6,047.89 6,047.89 12,471.18 06/15/2008 - 3,442.85 3,442.85 9,028.33 07/15/2008 - 2,535.81 2,535.81 6,492.52 08/15/2008 - 2,274.44 2,274.44 4,218.08 09/15/2008 2,211.86 2,211.86 2,006.22 10/15/2008 - 193.12 2,006.22 2,199.34 - 552,658.42 27,341.58 552,658.42 580,000.00 Average Life(years): 1.1258 Yield To Receipt Date: 4.3922172% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: 12.68 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 12 RESERVE FUND Truckee Donnor Public Utilities District Series 2006— Equipment Debt Service Reserve Fund (DSRF) Interest Capitalized Date Deposit @ 4.3943289% Principal Interest Debt Service Balance 10/03/2006 50,829.37 - - 50,829.37 11/15/2006 - 260.59 -260.59 50,829.37 05/15/2007 - 1,116.80 -1,116.80 50,829.37 11/15/2007 - 1,116.80 -1,116.80 50,829.37 05/15/2008 - 1,116.80 -1,116.80 50,829.37 11/15/2008 - 1,116.80 -1,116.80 50,829.37 05/15/2009 - 1,116.80 -1,116.80 50,829.37 11/15/2009 - 1,116.80 -1,116.80 50,829.37 05/15/2010 - 1,116.80 -1,116.80 50,829.37 11/15/2010 - 1,116.80 - -1,116.80 50,829.37 05/15/2011 - 1,116.80 - -1,116.80 50,829.37 11/15/2011 - 1,116.80 50,829.37 -51,946.17 - 50,829.37 11,428.59 50,829.37 -4,727.79 -57,530.17 Average Life(years): 5.1167 Yield To Receipt Date: 4.3952461% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: -2.12 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 13 RESERVE FUND Truckee Donnor Public Utilities District Series 2006 — Equipment Capitalized Interest XAPO Interest Debt Service Scheduled Date Deposit @ 4.3943289% Principal Reserve Fund Debt Service Draws Balance f 10/03/2006 63,690.44 - 63,690.44 11/15/2006 - 326.52 -359.12 359.12 -685.64 64,049.56 05/15/2007 - 1,399.38 18,914.60 1,539.11 -2,938.49 20,453.71 45,134.96 11/15/2007 - 991.69 15,044.99 1,539.11 -2,530.80 16,584.10 30,089.97 05/15/2008 - 661.13 15,044.99 1,539.11 -2,200.24 16,584.10 15,044.98 11/15/2008 - 330.56 15,044.98 1,539.11 -1,869.67 16,584.09 - 63,690.44 3,709.28 63,690.44 6,515.56 -10,224.84 70,206.00 Average Life(years): 1.3281 Yield To Receipt Date: 4.3786926% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: 12.67 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 14 SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Series 2006— System Improvements Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 19,860,000.00 Premium 955,747.30 20,815,747.30 Uses: Project Fund Deposits: Construction Fund 16,941,145.76 Other Fund Deposits: Debt Service Reserve Fund 1,495,513.00 Capitalized Interest 1,873,914.36 3,369,427.36 Delivery Date Expenses: Cost of Issuance 175,441.70 Underwriter's Discount 132,373.71 Insurance @ 50 bps 196,801.11 504,616.52 Other Uses of Funds: Additional Proceeds 557.66 20,815,747.30 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 15 BOND DEBT SERVICE Truckee Donnor Public Utilities District Series 2006— System Improvements Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 05/15/2007 - 605,597.50 605,597.50 11/15/2007 - 491,025.00 491,025.00 1,096,622.50 05/15/2008 - 491,025.00 491,025.00 - 11/15/2008 - 491,025.00 491,025.00 982,050.00 05/15/2009 - - 491,025.00 491,025.00 - 11/15/2009 350,000 4.000% 491,025.00 841,025.00 1,332,050.00 05/15/2010 - - 484,025.00 484,025.00 11/15/2010 365,000 4.000% 484,025.00 849,025.00 1,333,050.00 05/15/2011 - - 476,725.00 476,725.00 11/15/2011 380,000 4.000% 476,725.00 856,725.00 1,333,450.00 05/15/2012 - - 469,125.00 469,125.00 11/15/2012 395,000 5.000% 469,125.00 864,125.00 1,333,250.00 05/15/2013 - - 459,250.00 459,250.00 11/15/2013 415,000 5.000% 459,250.00 874,250.00 1,333,500.00 05/15/2014 - - 448,875.00 448,875.00 11/15/2014 435,000 5.000% 448,875.00 883,875.00 1,332,750.00 05/15/2015 - - 438,000.00 438,000.00 11/15/2015 455,000 5.000% 438,000.00 893,000.00 1,331,000.00 05/15/2016 - - 426,625.00 426,625.00 11/15/2016 480,000 5.000% 426,625.00 906,625.00 1,333,250.00 05/15/2017 - - 414,625.00 414,625.00 11/15/2017 500,000 5.000% 414,625.00 914,625.00 1,329,250.00 05/15/2018 - - 402,125.00 402,125.00 11/15/2018 525,000 5.000% 402,125.00 927,125.00 1,329,250.00 05/15/2019 - - 389,000.00 389,000.00 11/15/2019 555,000 5.000% 389,000.00 944,000.00 1,333,000.00 05/15/2020 - - 375,125.00 375,125.00 11/15/2020 580,000 5.000% 375,125.00 955,125.00 1,330,250.00 05/15/2021 - - 360,625.00 360,625.00 11/15/2021 610,000 5.000% 360,625.00 970,625.00 1,331,250.00 05/15/2022 - - 345,375.00 345,375.00 11/15/2022 640,000 5.000% 345,375.00 985,375.00 1,330,750.00 05/15/2023 - - 329,375.00 329,375.00 11/15/2023 670,000 5.000% 329,375.00 999,375.00 1,328,750.00 05/15/2024 - - 312,625.00 312,625.00 11/15/2024 705,000 5.000% 312,625.00 1,017,625.00 1,330,250.00 05/15/2025 - - 295,000.00 295,000.00 11/15/2025 740,000 5.000% 295,000.00 1,035,000.00 1,330,000.00 05/15/2026 - - 276,500.00 276,500.00 11/15/2026 780,000 5.000% 276,500.00 1,056,500.00 1,333,000.00 05/15/2027 - - 257,000.00 257,000.00 11/15/2027 815,000 5.000% 257,000.00 1,072,000.00 1,329,000.00 05/15/2028 - - 236,625.00 236,625.00 11/15/2028 860,000 5.000% 236,625.00 1,096,625.00 1,333,250.00 05/15/2029 - - 215,125.00 215,125.00 11/15/2029 900,000 5.000% 215,125.00 1,115,125.00 1,330,250.00 05/15/2030 - - 192,625.00 192,625.00 11/15/2030 945,000 5.000% 192,625.00 1,137,625.00 1,330,250.00 05/15/2031 - - 169,000.00 169,000.00 11/15/2031 995,000 5.000% 169,000.00 1,164,000.00 1,333,000.00 05/15/2032 - - 144,125.00 144,125.00 11/15/2032 1,045,000 5.000% 144,125.00 1,189,125.00 1,333,250.00 05/15/2033 - - 118,000.00 118,000.00 11/15/2033 1,095,000 5.000% 118,000.00 1,213,000.00 1,331,000.00 05/15/2034 - - 90,625.00 90,625.00 11/15/2034 1,150,000 5.000% 90,625.00 1,240,625.00 1,331,250.00 05/15/2035 - - 61,875.00 61,875.00 11/15/2035 1,205,000 5.000% 61,875.00 1,266,875.00 1,328,750.00 05/15/2036 - - 31,750.00 31,750.00 11/15/2036 1,270,000 5.000% 31,750.00 1,301,750.00 1,333,500.00 19,860,000 19,500,222.50 39,360,222.50 39,360,222.50 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 16 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Series 2006—System Improvements Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2036 Arbitrage Yield 4.394329% True Interest Cost(TIC) 4.722373% Net Interest Cost(NIC) 4.777763% All-In TIC 4.793896% Average Coupon 4.988392% Average Life(years) 19.683 Duration of Issue(years) 12.217 Par Amount 19,860,000.00 Bond Proceeds 20,815,747.30 Total Interest 19,500,222.50 Net Interest 18,676,848.91 Total Debt Service 39,360,222.50 Maximum Annual Debt Service 1,333,500.00 Average Annual Debt Service 1,306,924.93 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 9,580,000.00 105.455 4.963% 12.885 7,258.25 Term Bond maturing 2031 4,515,000.00 104.353 5.000% 23.215 3,747.45 Term Bond maturing 2036 5,765,000.00 104.105 5.000% 28.214 4,784.95 19,860,000.00 19.683 15,790.65 All-In Arbitrage TIC TIC Yield Par Value 19,860,000.00 19,860,000.00 19,860,000.00 +Accrued Interest - +Premium(Discount) 955,747.30 955,747.30 955,747.30 Underwriter's Discount -132,373.71 -132,373.71 Cost of Issuance Expense -175,441.70 -Other Amounts -196,801.11 -196,801.11 -196,801.11 Target Value 20,486,572.48 20,311,130.78 20,618,946.19 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.722373% 4.793896% 4.394329% Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FiXFIN5) Page 17 BOND PRICING Truckee Donnor Public Utilities District Series 2006 - System Improvements Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2007 4.000% 3.550% 100.485 11/15/2008 4.000% 3.580% 100.845 11/15/2009 350,000 4.000% 3.620% 101.107 11/15/2010 365,000 4.000% 3.660% 101.285 11/15/2011 380,000 4.000% 3.710% 101.336 11/15/2012 395,000 5.000% 3.780% 106.602 11/15/2013 415,000 5.000% 3.870% 106.966 11/15/2014 435,000 5.000% 3.960% 107.154 11/15/2015 455,000 5.000% 4.030% 107.335 11/15/2016 480,000 5.000% 4.080% 107.558 11/15/2017 500,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11/15/2016 100.000 11/15/2018 525,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000 11/15/2019 555,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/2020 580,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 100.000 11/15/2021 610,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 11/15/2022 640,000 5.000% 4.330% 105.436 C 4.521% 11/15/2016 100.000 11/15/2016 100.000 11/15/2023 670,000 5.000% 4.360% 105.185 C 4.560% 11/15/2016 100.000 11/15/2016 100.000 11/15/2024 705,000 5.000% 4.380% 105.018 C 4.589% 11/15/2016 100.000 11/15/2016 100.000 11/15/2025 740,000 5.000% 4.400% 104.851 C 4.615% 11/15/2016 100.000 11/15/2016 100.000 11/15/2026 780,000 5.000% 4.420% 104.685 C 4.639% 11/15/2016 100.000 11/15/2016 100.000 9,580,000 Term Bond maturing 2031: 11/15/2027 815,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2028 860,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2029 900,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2030 945,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 11/15/2031 995,000 5.000% 4.460% 104.353 C 4.702% 11/15/2016 100.000 11/15/2016 100.000 4,515,000 Term Bond maturing 2036: 11/15/2032 1,045,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2033 1,095,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2034 1,150,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2035 1,205,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 11/15/2036 1,270,000 5.000% 4.490% 104.105 C 4.742% 11/15/2016 100.000 11/15/2016 100.000 5,765,000 19,860,000 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFINS) Page 18 I BOND PRICING Truckee Donnor Public Utilities District Series 2006— System Improvements Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 19,860,000.00 Premium 955,747.30 Production 20,815,747.30 104.812423% Underwriter's Discount -132,373.71 -0.666534% Purchase Price 20,683,373.59 104.145889% Accrued Interest Net Proceeds 20,683,373.59 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 19 PROJECT FUND Truckee Donnor Public Utilities District Series 2006— System Improvements Construction Fund MONST) Interest Scheduled Date Deposit @ 4.3943289% Principal Draws Balance 10/03/2006 16,941,145.76 - 16,941,145.76 10/15/2006 24,814.99 -24,814.99 16,965,960.75 11/15/2006 - 67,355.79 67,355.79 16,898,604.96 12/15/2006 67,419.50 67,419.50 16,831,185.46 01/15/2007 - 67,802.13 67,802.13 16,763,383.33 02/15/2007 69,720.36 69,720.36 16,693,662.97 03/15/2007 - 77,732.37 77,732.37 16,615,930.60 04/15/2007 369,009.11 -263,472.35 105,536.76 16,879,402.95 05/15/2007 - 185,391.47 185,391.47 16,694,011.48 06/15/2007 374,065.05 374,065.05 16,319,946.43 07/15/2007 - 737,282.27 737,282.27 15,582,664.16 08/15/2007 - 1,297,410.19 1,297,410.19 14,285,253.97 09/15/2007 - 1,965,903.14 1,965,903.14 12,319,350.83 10/15/2007 - 337,193.81 2,193,474.30 2,530,668.11 10,125,876.53 11/15/2007 - - 2,754,053.47 2,754,053.47 7,371,823.06 12/15/2007 - 2,530,668.11 2,530,668.11 4,841,154.95 01/15/2008 - 1,965,903.14 1,965,903.14 2,875,251.81 02/15/2008 - 1,297,410.19 1,297,410.19 1,577,841.62 03/15/2008 - 737,282.27 737,282.27 840,559.35 04/15/2008 - 101,188.61 272,876.44 374,065.05 567,682.91 05/15/2008 - - 185,391.47 185,391.47 382,291.44 06/15/2008 - 105,536.76 105,536.76 276,754.68 07/15/2008 - 77,732.37 77,732.37 199,022.31 08/15/2008 - 69,720.36 69,720.36 129,301.95 09/15/2008 - - 67,802.13 67,802.13 61,499.82 10/15/2008 - 5,919.72 61,499.82 67,419.54 - 16,941,145.76 838,126.24 16,941,145.76 17,779,272.00 Average Life(years): 1.1258 Yield To Receipt Date: 4.3922153% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: 388.90 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 20 RESERVE FUND Truckee Donnor Public Utilities District Series 2006—System Improvements Debt Service Reserve Fund (DSRF) Interest Capitalized Date Deposit @ 4.3943289% Principal Interest Debt Service Balance 10/03/2006 1,495,513 - 1,495,513 11/15/2006 7,667.07 -7,667.07 1,495,513 05/15/2007 32,858.88 -32,858.88 1,495,513 11/15/2007 32,858.88 -32,858.88 1,495,513 05/15/2008 32,858.88 -32,858.88 1,495,513 11/16/2008 32,858.88 -32,868.88 1,495,513 05/15/2009 32,858.88 -32,858.88 1,495,513 11/15/2009 32,858.88 -32,858.88 1,495,513 05/15/2010 32,858.88 -32,858.88 1,495,513 11/15/2010 32,858.88 -32,858.88 1,495,513 05/15/2011 32,858.88 -32,858.88 1,495,513 11/15/2011 32,858.88 -32,858.88 1,495,513 06/15/2012 32,868.88 -32,858.88 1,495,513 11/15/2012 32,858.88 -32,858.88 1,495,513 05/15/2013 32,858.88 -32,858.88 1,495,513 11/15/2013 32,858.88 -32,858.88 1,495,513 05/15/2014 32,858.88 -32,858.88 1,495,513 11/15/2014 32,858.88 -32,858.88 1,495,513 05/15/2015 32,858.88 -32,858.88 1,495,513 11/15/2015 32,858.88 -32,858.88 1,495,513 05/15/2016 32,858.88 -32,858.88 1,495,513 11/15/2016 32,858.88 -32.858.88 1,495,513 05/15/2017 32,858.88 -32,858.88 1,495,513 11/15/2017 32,858.88 -32,858.88 1,495,513 05/15/2018 32,858.88 -32,858.88 1,495,513 11/15/2018 32,858.88 -32,858.88 1,495,513 05/15/2019 32,858.88 -32,858.88 1,495,513 11/15/2019 32,858.88 -32,858.88 1,495,513 05/15/2020 32,858.88 -32,858.88 1,495,513 11/15/2020 32,858.88 -32,858.88 1,495,513 05/15/2021 32,858.88 -32,858.88 1,495,513 11/15/2021 32,858.88 -32,858.88 1,495,513 05/15/2022 32,858.88 -32,858.88 1,495,513 11/15/2022 32,858.88 -32,858.88 1,495,513 05/15/2023 32,858.88 -32,858.88 1,495,513 11/15/2023 32,858.88 -32,858.88 1,495,513 05/15/2024 32,858.88 -32,858.88 1,495,513 11/15/2024 32,858.88 -32,858.88 1,495,513 05/15/2025 32,858.88 -32,858.88 1,495,513 11/15/2025 32,858.88 -32,858.88 1,495,513 05/15/2026 32,858.88 -32,858.88 1,495,513 11/15/2026 32,858.88 -32,858.88 1,495,513 05/15/2027 32,858.88 -32,858.88 1,495,513 11/15/2027 32,858.88 -32,858.88 1,495,513 05/15/2028 32,858.88 -32,858.88 1,495,513 11/15/2028 32,858.88 -32,858.88 1,495,513 05/15/2029 32,858.88 -32,858.88 1,495,513 11/15/2029 32,858.88 -32,858.88 1,495,513 05/15/2030 32,858.88 -32,858.88 1,495,513 11/15/2030 32,858.88 -32,858.88 1,495,513 05/15/2031 32,858.88 -32,858.88 1,495,513 11/15/2031 32,858.88 -32,858.88 1,495,513 05/15/2032 32,858.88 -32,858.88 1,495,513 11/15/2032 32,858.88 -32,858.88 1,495,513 05/15/2033 32,858.88 -32,858.88 1,495,513 11/15/2033 32,858.88 -32,858.88 1,495,513 05/15/2034 32,858.88 -32,858.88 1,495,513 11/15/2034 32,858.88 -32,858.88 1,495,513 05/15/2035 32,858.88 -32,858.88 1,495,513 11/15/2035 32,858.88 -32,858.88 1,495,513 05/15/2036 32,858.88 -32,858.88 1,495,513 11/15/2036 - 32,858.88 1,495,513 -1,528,371.88 - 1,495,513 1,979,199.87 1,495,513 -139,102.59 -3,335,610.28 Average Life(years): 30.1167 Yield To Receipt Date: 4.3945843% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: -63.44 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee don ner:FIXFIN5) Page 21 RESERVE FUND Truckee Donnor Public Utilities District Series 2006— System Improvements Capitalized Interest (CAPI) Interest Debt Service Scheduled Date Deposit @ 4.3943289% Principal Reserve Fund Debt Service Draws Balance 10/03/2006 1,873,914.36 - - 1,873,914.36 { 11/15/2006 9,607.03 -10,566.26 10,566.26 -20,173.29 1,884,480.62 05/15/2007 41,172.98 556,509.82 45,283.97 -86,456.95 601,793.79 1,327,970.80 11/15/2007 29,177.70 442,656.93 45,283.97 -74,461.67 487,940.90 885,313.87 05/15/2008 19,451.80 442,656.93 45,283.97 -64,735.77 487,940.90 442,656.94 11/15/2008 - 9,725.90 442,656.93 45,283.97 -55,009.87 487,940.90 0.01 1,873,914.36 109,135.41 1,873,914.35 191,702.14 -300,837.55 2,065,616.49 Average Life(years): 1.3281 Yield To Receipt Date: 4.3786978% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: 372.57 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 22 SOURCES AND USES OF FUNDS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/03/2006 Delivery Date 10/03/2006 Sources: Bond Proceeds: Par Amount 7,765,000.00 Premium 407,357.45 8,172,357.45 Other Sources of Funds: DSF Release 577,621.25 DSRF Release 808,470.00 1,386,091.25 9,558,448.70 Uses: Refunding Escrow Deposits: Cash Deposit 0.27 SLG Purchases 8,801,418.00 8,801,418.27 Other Fund Deposits: Debt Service Reserve Fund 584,726.01 Delivery Date Expenses: Cost of Issuance 68,595.40 Underwriter's Discount 46,474.71 Insurance @ 50 bps 55,986.84 171,056.95 Other Uses of Funds: Additional Proceeds 1,247.47 9,558,448.70 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 23 SAVINGS Truckee Donnor Public Utilities District Fixed Rate Refunding Present Value Prior Prior Prior Refunding to 10/03/2006 Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 4.3943289% 11/15/2006 577,621.25 577,621.25 - 2,921.82 11/15/2007 806,867.50 806,867.50 751,268.33 55,599.17 52,783.13 11/15/2008 803,182.50 - 803,182.50 744,700.00 58,482.50 53,977.96 11/15/2009 803,355.00 - 803,355.00 744,100.00 59,255.00 52,316.01 11/15/2010 807,092.50 - 807,092.50 747,900.00 59,192.50 49,991.91 11/15/2011 799,302.50 - 799,302.50 740,900.00 58,402.50 47,182.05 11/15/2012 805,495.00 - 805,495.00 748,500.00 56,995.00 44,042.25 11/15/2013 804,845.00 - 804,845.00 750,500.00 54,345.00 40,202.58 11/15/2014 802,345.00 - 802,345.00 746,250.00 56,095.00 39,697.16 11/15/2015 808,470.00 - 808,470.00 751,000.00 57,470.00 38,906.92 11/15/2016 807,670.00 - 807,670.00 749,250.00 58,420.00 37,835.29 11/15/2017 805,220.00 - 805,220.00 746,250.00 58,970.00 36,535.00 11/15/2018 801,740.00 - 801,740.00 747,000.00 54,740.00 32,455.42 11/15/2019 806,640.00 - 806,640.00 751,250.00 55,390.00 31,415.40 11/15/2020 804,380.00 - 804,380.00 748,750.00 55,630.00 30,180.73 11/15/2021 785,230.00 - 785,230.00 729,750.00 55,480.00 28,789.87 12,629,456.25 577,621.25 12,051,835.00 11,197,368.33 854,466.67 613,389.86 Savings Summary PV of savings from cash flow 613,389.86 Less:Prior funds on hand -808,470.00 Plus:Refunding funds on hand 585,973.48 Net PV Savings 390,893.34 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 24 SUMMARY OF REFUNDING RESULTS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/03/2006 Delivery Date 10/03/2006 Arbitrage yield 4.394329% Escrow yield 5.262767% Bond Par Amount 7,765,000.00 True Interest Cost 4.341437% Net Interest Cost 4.391857% Average Coupon 4.907876% Average Life 9.007 Par amount of refunded bonds 8,465,000.00 Average coupon of refunded bonds 5.414312% Average life of refunded bonds 8.706 PV of prior debt to 10/03/2006 @ 4.394329% 9,230,814.08 Net PV Savings 390,893.34 Percentage savings of refunded bonds 4.617759% Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co. Inc. (Finance 5.019 truckee don ner:FIXFIN5) Page 25 BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate Refunding Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 - - 05/15/2007 - - 227,118.33 227,118.33 - 11/15/2007 340,000 4.000% 184,150.00 524,150.00 751,268.33 05/15/2008 - - 177,350.00 177,350.00 - 11/15/2008 390,000 4.000% 177,350.00 567,350.00 744,700.00 05/15/2009 - - 169,550.00 169,550.00 - 11/15/2009 405,000 4.000% 169,550.00 574,550.00 744,100.00 05/15/2010 - - 161,450.00 161,450.00 - 11/15/2010 425,000 4.000% 161,450.00 586,450.00 747,900.00 05/15/2011 - - 152,950.00 152,950.00 - 11/15/2011 435,000 4.000% 152,950.00 587,950.00 740,900.00 05/15/2012 - - 144,250.00 144,250.00 - 11/15/2012 460,000 5.000% 144,250.00 604,250.00 748,500.00 05/15/2013 - - 132,750.00 132,750.00 - 11/15/2013 485,000 5.000% 132,750.00 617,750.00 750,500.00 05/15/2014 - - 120,625.00 120,625.00 - 11/15/2014 505,000 5.000% 120,625.00 625,625.00 746,250.00 05/15/2015 - - 108,000.00 108,000.00 - 11/15/2015 535,000 5.000% 108,000.00 643,000.00 751,000.00 05/15/2016 - - 94,625.00 94,625.00 - 11115/2016 560,000 5.000% 94,625.00 654,625.00 749,250.00 05/15/2017 - - 80,625.00 80,625.00 - 11115/2017 585,000 5.000% 80,625.00 665,625.00 746,250.00 05/15/2018 - - 66,000.00 66,000.00 - 11/15/2018 615,000 5.000% 66,000.00 681,000.00 747,000.00 05115/2019 - - 50,625.00 50,625.00 - 11115/2019 650,000 5.000% 50,625.00 700,625.00 751,250.00 05115/2020 - - 34,375.00 34,375.00 - 11115/2020 680,000 5.000% 34,375.00 714,375.00 748,750.00 05/15/2021 - - 17,375.00 17,375.00 - 11/15/2021 695,000 5.000% 17,375.00 712,375.00 729,750.00 7,765,000 3,432,368.33 11,197,368.33 11,197,368.33 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 26 BOND SUMMARY STATISTICS Truckee Donnor Public Utilities District Fixed Rate Refunding Dated Date 10/03/2006 Delivery Date 10/03/2006 Last Maturity 11/15/2021 Arbitrage Yield 4.394329% True Interest Cost(TIC) 4.341437% Net Interest Cost(NIC) 4.391857% All-In TIC 4.462414% Average Coupon 4.907876% Average Life(years) 9.007 Duration of Issue(years) 7.173 Par Amount 7,765,000.00 Bond Proceeds 8,172,357.45 Total Interest 3,432,368.33 Net Interest 3,071,485.59 Total Debt Service 11,197,368.33 Maximum Annual Debt Service 751,268.33 Average Annual Debt Service 740,729.99 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bonds 7,765,000.00 105.246 4.908% 9.007 5,151.20 7,765,000.00 9.007 5,151.20 All-In Arbitrage TIC TIC Yield Par Value 7,765,000.00 7,765,000.00 7,765,000.00 +Accrued Interest +Premium(Discount) 407,357.45 407,357.45 407,357.45 Underwriter's Discount -46,474.71 -46,474.71 Cost of Issuance Expense -68,595.40 Other Amounts -55,986.84 -55,986.84 -55,986.84 Target Value 8,069,895.90 8,001,300.50 8,116,370.61 Target Date 10/03/2006 10/03/2006 10/03/2006 Yield 4.341437% 4.462414% 4.394329% Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 27 BOND PRICING Truckee Donnor Public Utilities District Fixed Rate Refunding Maturity Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield Serial Bonds: 11/15/2006 - 4.000% 3.520% 100.049 - 11/15/2007 340,000 4.000% 3.550% 100.485 - _ 11/15/2008 390,000 4.000% 3.580% 100.845 - _ 11/15/2009 405,000 4.000% 3.620% 101.107 S 11/15/2010 425,000 4.000% 3.660% 101.285 - 11/15/2011 435,000 4.000% 3.710% 101.336 - - 11/15/2012 460,000 5.000% 3.780% 106.602 - 11/15/2013 485,000 5.000% 3.870% 106.966 - 11/15/2014 505,000 5.000% 3.960% 107.154 - 11/15/2015 535,000 5.000% 4.030% 107.335 - 11/15/2016 560,000 5.000% 4.080% 107.558 11/15/2017 585,000 5.000% 4.130% 107.130 C 4.191% 11/15/2016 100.000 11/15/2016 100.000 11/15/2018 615,000 5.000% 4.180% 106.704 C 4.284% 11/15/2016 100.000 11/15/2016 100.000 11/15/2019 650,000 5.000% 4.220% 106.364 C 4.357% 11/15/2016 100.000 11/15/2016 100.000 11/15/2020 680,000 5.000% 4.260% 106.025 C 4.421% 11/15/2016 100.000 11/15/2016 100.000 11/15/2021 695,000 5.000% 4.300% 105.688 C 4.478% 11/15/2016 100.000 11/15/2016 100.000 7,765,000 Dated Date 10/03/2006 Delivery Date 10/03/2006 First Coupon 05/15/2007 Par Amount 7,765,000.00 Premium 407,357,45 Production 8,172,357.45 105.246071% Underwriter's Discount -46,474.71 -0.598515% Purchase Price 8,125,882.74 104.647556% Accrued Interest Net Proceeds 8,125,882.74 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 28 RESERVE FUND Truckee Donnor Public Utilities District Fixed Rate Refunding Debt Service Reserve Fund (DSRF) Interest Date Deposit @ 4.3943289% Principal CAPI Debt Service Balance 10/03/2006 584,726.01 - 584,726.01 11/15/2006 - 2,997.72 - -2,997.72 584,726.01 05/15/2007 12,847.39 - -12,847.40 584,726.01 11/15/2007 12,847.39 - 12,847.40 584,726.01 05/15/2008 12,847.39 - -12,847.40 584,726.01 11/15/2008 12,847.39 - -12,847.40 584,726.01 05/15/2009 12,847.39 - -12,847.40 584,726.01 11/15/2009 - 12,847.39 - -12,847.40 584,726.01 05/15/2010 - 12,847.39 - -12,847.40 584,726.01 11/15/2010 - 12,847.39 - -12,847.40 584,726.01 05/15/2011 - 12,847.39 - -12,847.40 584,726.01 11/15/2011 - 12,847.39 - -12,847.40 584,726.01 05/15/2012 - 12,847.39 - - -12,847.40 584,726.01 11/15/2012 - 12,847.39 - - -12,847.40 584,726.01 05/15/2013 - 12,847.39 - - -12,847.40 584,726.01 11/15/2013 - 12,847.39 - - -12,847.40 584,726.01 05/15/2014 - 12,847.39 - - -12,847.40 584,726.01 11/15/2014 - 12,847.39 - - -12,847.40 584,726.01 05/15/2015 - 12,847.39 - - -12,847.40 584,726.01 11/15/2015 - 12,847.39 - - -12,847.40 584,726.01 05/15/2016 - 12,847.39 - - -12,847.40 584,726.01 11/15/2016 - 12,847.39 - - -12,847.40 584,726.01 05/15/2017 - 12,847.39 - - -12,847.40 584,726.01 11/15/2017 - 12,847.39 - - -12,847.40 584,726.01 05/15/2018 - 12,847.39 - - -12,847.40 584,726.01 11/15/2018 - 12,847.39 - - -12,847.40 584,726.01 05/15/2019 - 12,847.39 - - -12,847.40 584,726.01 11/15/2019 - 12,847.39 - - -12,847.40 584,726.01 05/15/2020 - 12,847.39 - - -12,847.40 584,726.01 11/15/2020 - 12,847.39 - - -12,847.40 584,726.01 05/15/2021 - 12,847.39 - - -12,847.40 584,726.01 11/15/2021 - 12,847.39 584,726.01 - -597,573.40 - 584,726.01 388,419.42 584,726.01 -54,387.32 -918,758.40 Average Life(years): 15.1167 Yield To Receipt Date: 4.3947152% Arbitrage Yield: 4.3943289% Value of Negative Arbitrage: -24.75 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 29 ESCROW REQUIREMENTS Truckee Donnor Public Utilities District Fixed Rate Refunding Period Principal Redemption Ending Principal Interest Redeemed Premium Total 11/15/2006 350,000.00 227,621.25 8,115,000.00 162,300.00 8,854,921.25 350,000.00 227,621.25 8,115,000.00 162,300.00 8,854,921.25 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 30 ESCROW COST DETAIL Truckee Donnor Public Utilities District Fixed Rate Refunding Type of Maturity Par Total Security Date Amount Rate Cost DSF: SLG 11/15/2006 577,620.98 5.160% 577,620.98 RESERVE: SLG 11/15/2006 223,743.99 5.160% 223,743.99 BP: SLG 11/15/2006 8,000,053.03 5.160% 8,000,053.03 8,801,418.00 8,801,418.00 Purchase Cost of Cash Total Escrow Date Securities Deposit Escrow Cost Yield DSF 10/03/2006 577,620.98 0.27 577,621.25 5.262763% RESERVE 10/03/2006 223,743.99 - 223,743.99 5.262773% BP 10/03/2006 8,000,053.03 - 8,000,053.03 5.262767% 8,801,418.00 0.27 8,801,418.27 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 31 ESCROW DESCRIPTIONS DETAIL Truckee Donnor Public Utilities District Fixed Rate Refunding Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate DSF,Oct 3,2006: SLG Certificate 11/15/2006 11/15/2006 577,620.98 5.160% 5.160% RESERVE,Oct 3,2006: SLG Certificate 11/15/2006 11/15/2006 223,743.99 5.160% 5.160% BP,Oct 3,2006: SLG Certificate 11/15/2006 11/15/2006 8,000,053.03 5.160% 5.160% 8,801,418.00 SLGS Summary SLGS Rates File 04AUG06 Total Certificates of Indebtedness 8,801,418.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 32 ESCROW CASH FLOW Truckee Donnor Public Utilities District Fixed Rate Refunding Prior Debt (DEBT) - DSF Present Value Net Escrow to 10/03/2006 Date Principal Interest Receipts @ 5.2627628% 11/15/2006 577,620.98 3,511.30 581,132.28 577,620.98 577,620.98 3,511.30 581,132.28 577,620.98 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 577,620.98 Target for yield calculation 577,620.98 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 33 ESCROW CASH FLOW Truckee Donnor Public Utilities District Fixed Rate Refunding Prior Debt (DEBT) - RESERVE Present Value Net Escrow to 10/03/2006 Date Principal Interest Receipts @ 5.2627735% 11/15/2006 223,743.99 1,360.12 225,104.11 223,743.99 223,743.99 1,360.12 225,104.11 223,743.99 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 223,743.99 Target for yield calculation 223,743.99 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 34 ESCROW CASH FLOW Truckee Donnor Public Utilities District Fixed Rate Refunding Prior Debt (DEBT) - BP Present Value Net Escrow to 10/03/2006 Date Principal Interest Receipts @ 5.2627672% 11/15/2006 8,000,053.03 48,631.56 8,048,684.59 8,000,053.03 8,000,053.03 48,631.56 8,048,684.59 8,000,053.03 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 8,000,053.03 Target for yield calculation 8,000,053.03 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 35 PROOF OF COMPOSITE ESCROW YIELD Truckee Donnor Public Utilities District Fixed Rate Refunding All restricted escrows funded by bond proceeds Present Value Security to 10/03/2006 Date Receipts @ 5.2627672% 11/15/2006 8,048,684.59 8,000,053.03 8,048,684.59 8,000,053.03 Escrow Cost Summary Purchase date 10/03/2006 Purchase cost of securities 8,000,053.03 Target for yield calculation 8,000,053.03 Aug 7,2006 4:39 pm Prepared by Bear,Steams&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 36 ESCROW SUFFICIENCY Truckee Donnor Public Utilities District Fixed Rate Refunding Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 10/03/2006 0.27 0.27 0.27 11/15/2006 8,854,921.25 8,854,920.98 -0.27 - 8,854,921.25 8,854,921.25 0.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5,019 truckee donner:FIXFIN5) Page 37 SUMMARY OF BONDS REFUNDED Truckee Donnor Public Utilities District Fixed Rate Refunding Maturity Interest Par Call Call Bond Date Rate Amount Date Price Series 1996 COPs, 1996: SERIAL 11/15/2006 5.250% 350,000.00 - - 11/15/2007 5.050% 370,000.00 11/15/2006 102.000 11/15/2008 5.150% 385,000.00 11/15/2006 102.000 11/15/2009 5.250% 405,000.00 11/15/2006 102.000 11/15/2010 5.300% 430,000.00 11/15/2006 102.000 11/15/2011 5.350% 445,000.00 11/15/2006 102.000 11/15/2012 5.400% 475,000.00 11/15/2006 102.000 TERM16 11/15/2013 5.500% 500,000.00 11/15/2006 102.000 11/15/2014 5.500% 525,000.00 11/15/2006 102.000 11/15/2015 5.500% 560,000.00 11/15/2006 102.000 11/15/2016 5.500% 590,000.00 11/15/2006 102.000 TERM21 11/15/2017 5.400% 620,000.00 11/15/2006 102.000 11/15/2018 5.400% 650,000.00 11115/2006 102.000 11/15/2019 5.400% 690,000.00 11/15/2006 102.000 11/15/2020 5.400% 725,000.00 11/15/2006 102.000 11/15/2021 5.400% 745,000.00 11/15/2006 102.000 8,465,000.00 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 38 PRIOR BOND DEBT SERVICE Truckee Donnor Public Utilities District Fixed Rate Refunding Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/03/2006 - - _ _ 11/1512006 350,000 5.250% 227,621.25 577,621.25 577,621.25 05/15/2007 - - 218,433.75 218,433.75 - 11/15/2007 370,000 5.050% 218,433.75 588,433.75 806,867.50 05/15/2008 - - 209,091.25 209,091.25 - 11/1512008 385,000 5.150% 209,091.25 594,091.25 803,182.50 05/15/2009 - - 199,177.50 199,177.50 - 11/15/2009 405,000 5.250% 199,177.50 604,177.50 803,355.00 05/15/2010 - - 188,546.25 188,546.25 - 11115/2010 430,000 5.300% 188,546.25 618,546.25 807,092.50 05/15/2011 - - 177,151.25 177,151.25 - 11/15/2011 445,000 5.350% 177,151.25 622,151.25 799,302.50 05/15/2012 - - 165,247.50 165,247.50 - 11/15/2012 475,000 5.400% 165,247.50 640,247.50 805,495.00 05/15/2013 - - 152,422.50 152,422.50 - 11/15/2013 500,000 5.500% 152,422.50 652,422.50 804,845.00 05/15/2014 - - 138,672.50 138,672.50 - 11/15/2014 525,000 5.500% 138,672.50 663,672.50 802,345.00 05/15/2015 - - 124,235.00 124,235.00 - 11/15/2015 560,000 5.500% 124,235.00 684,235.00 808,470.00 05/15/2016 - - 108,835.00 108,835.00 - 11/15/2016 590,000 5.500% 108,835.00 698,835.00 807,670.00 05/15/2017 - - 92,610.00 92,610.00 - 11/15/2017 620,000 5.400% 92,610.00 712,610.00 805,220.00 05/15/2018 - - 75,870.00 75,870.00 - 11/15/2018 650,000 5.400% 75,870.00 725,870.00 801,740.00 05/15/2019 - - 58,320.00 58,320.00 - 11/15/2019 690,000 5.400% 58,320.00 748,320.00 806,640.00 05/15/2020 - - 39,690.00 39,690.00 - 11/15/2020 725,000 5.400% 39,690.00 764,690.00 804,380.00 05/15/2021 - - 20,115.00 20,115.00 - 11/15/2021 745,000 5.400% 20,115.00 765,115.00 785,230.00 8,465,000 4,164,456.25 12,629,456.25 12,629,456.25 Aug 7,2006 4:39 pm Prepared by Bear,Stearns&Co.Inc. (Finance 5.019 truckee donner:FIXFIN5) Page 39 Appendix Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 12/05/2006 Massachusetts Bay Transport Auth 224.89 2006 Series B Transportation N MA 09/13/2006 Massachusetts Housing Fin A en 24.50 Series 125 Single Family Housinj N MA 09/13/2006 Massachusetts Housing Fin A enc 100.51 Series 124 Single Family Housirif N MA 09/07/2006 Essex Co Improvement Authorig 41.87 Series 2006 Gen]Purpose/Public Inir N NJ 08/24/2006 Connecticut Housing Finance Autt 24.45 2006 Series E Single Family Housinj N CT 08/23/2006 So Califomia Metro Water Dt 200.00 2005 Series C Water Sewer&Gas Facs N CA 08/17/2006 Cleveland Ci -Ohie 95.27 Series 2006 A Electric&Public Power N OH O8/1712006 Florida Housing Finance CorT 175.00 2006 Series 4&5 Single Family Housinj N FL 08/17/2006 Cleveland City-Ohio 12.30 Series 2006 A-2 Electric&Public Power N OH 08/16/2006 Detroit City-Michigan 120.00 Series 2006 B Water,Sewer&Gas Facs N MI 08/16/2006 Detroit City-Michigan 647.24 Series 2006 A,C,D Water,Sewer&Gas Facs N MI 08/10/2006 Massachusetts 180.88 2006 Series A Genl Purpose/Public Imp N MA O8/10/2006 Detroit City-Michigan 250.00 Series 2006 B Water,Sewer&Gas Facs N MI O8/08/2006 Connecticut Housing Finance Autl 6.06 2006 Series F-3 Single Family Housing N CT 08/08/2006 Connecticut Housing Finance Autl 93.95 2006 Series F-1 Single Family Housin N CT 08/03/2006 Los Angeles Harbor Dept 16.55 Series 2005 C Sea orts/Marine Terminals N CA 08/03/2006 Los Angeles Harbor Dept 410.53 Series 2005 A&B Seaports/Marine Terminals N CA 08/01/2006 North Hudson Sewerage Authorit 80.94 Series 2006 A Water,Sewer&Gas Facs N NJ 07/27/2006 California Housing Finance Agc3 20.00 Series 2006 D Single Family Housinj N CA 07/27/2006 California Housing Finance Agc3 100.00 Series 2006 E Single Family Housinj N CA 07/27/2006 NYS Environmental Facs Corp 192,51 Series 2006 C Pollution Control N NY 07/27/2006 Georgia Housing Finance Authorit3 50.00 2006 Series B Single Family Housing N GA 07/27/2006 NYS Thruway Authorig 350.90 Series 2006 A Transportation N NY 07/26/2006 Wyoming Community Dev Authorit 10.00 2006 Series 7 Single Family Housin N WY 07/26/2006 Wyoming Community Dev Authorit, 40.00 2006 Series 6 Single Family Housinj N WY 07/26/2006 Broward Co-Florida 52.48 Series 2006 B Genl Purpose/Public Inar N FL 07/26/2006 Broward Co-Florida 124.29 Series 2006 A Genl Purpose/Public Imp N FL 07/25/2006 Modesto Irri ation Dt 146.96 Series 2006 Genl Purpose/Public Imr N CA 07/25/2006 Irwindale Comm Redev A enc 44.04 Series 2006 Industrial Develo meni N CA 07/20/2006 Alaska Housing Finance Corr 75.00 2006 Series C Single Fa mil Housin N AK 07/20/2006 Sacramento Co Sanit Dt Fin Auth 338.96 Series 2006 Solid Waste/Resource Rec N CA 07/20/2006 Metropolitan Transportation Auth 475.00 Series 2006 A Trans ortation N NY 07/18/2006 Oregon Hsg&Comm Svcs Dept 18.71 Series 2006 D Single Family Housinj N OR 07/18/2006 Oregon Hsg&Comm Svcs Dept 21.30 Series 2006 E Single Family Housinj N OR 07/18/2006 Nevada Housing Divisior 18.00 Series 2006 A Single Family Housin N NV 07/18/2006 Nevada Housing Division 4.50 Series 2006 A Sin le Famii Housin N NV 07/13/2006 Maryland Community Dev Admit 17.67 2006 Series H Single Family Housin N MD 07/13/2006 Maryland Community Dev Admit 142,33 2006 Series 1 Single Family Housinj N MD 07/13/2006 NYS Mortgage A enc 1.82 Sereis 134 Single amil Housin N NY 07/13/2006 Metro Washington Airports Auth 164.46 Series 2007 A Airports N DC 07/13/2006 NYS Mortgage Agency 73.97 Sereis 133 Single Family Housinj N NY 07/13/2006 Salt River Pro'Agric Imp Pwr DI 296.00 2006 Series A Electric&Public Power N AZ 07/11/2006 Maine State Housing Authorig 6.97 2006 Series D-1 Single Family Housinj N ME 07/11/2006 Maine State Housiruz Authorig 38.03 2006 Series D-2 Single Family Housin N ME 07/11/2006 Maine State Housing Authori 5.00 2006 Series D-3 Single Family Housinj N ME 07/06/2006 Connecticut Housing Finance Autl 39.54 2006 Series D Single Family Housinj N CT 07/06/2006 Florida Hurricane Catastrophe Fin 1,350.03 Series 2006 A Genl Purpose/Public Imr N FL 06/29/2006 NYC Housing Dev Corp 2.51 Series 2006 D-1 Multi Family Housing N NY 06/29/2006 NYC Housing Dev Corp 81.64 Series 2006 C Multi Family Housin N NY 06/29/2006 Florida Citizens Prop Ins Corp 3,050.00 Series 2006 A l-22 Gen]Purpose/Public Imp N FL 06/29/2006 NYC Housing Dev Corp 37.84 Series 2006 D-2 E&F Multi Family Housin N NY 06/28/2006 Rhode Island Econ Dev Corp 48.77 Series 2006 Airports N RI 06/28/2006 Massachusetts Bay Transport Auth 260.54 2006 Series C Transportation N MA 06/28/2006 NYC Housing Dev Corp 31.90 2006 Series B Multi Family Housin N NY 06/22/2006 NYS Environmental Facs Corp 447.06 Series 2006 A&B Water,Sewer&Gas Facs N NY 06/22/2006 Triborou h Brid e&Tunnel Autl 200.00 Series 2006 A Transportation N NY O6/22/2006 Port of Portland-Oregon 71.63 Series 17 A Airports N OR 06/21/2006 Metropolitan Transportation Auth 350.00 Series 2006 A Transportation N NY 06/21/2006 Oregon 49.00 Series 85 Single Family Housinj N OR 06/20/2006 Indiana Municipal Power A enc 171.21 2006 Series A Electric&Public Power N IN 06/19/2006 Maine 12.91 Series 2006 Genl Purpose/Public Imp N ME 0 6/1 912 00 6 Maine 39.49 Series 2006 Genl Purpose/Public Imp N ME 06/15/2006 Tampa Housing Authori 11.90 Series 2006 Multi Family Housirif N FL 06/l5/2006 Rockwall Co Rockwall ISD 50.65 Series 2006 A Education N TX 06/l4/2006 Ore on De t of Trans ortation 291.51 Series 2006 A Transportation O6/14/2006 N OR South Dakota Housin Dev Auth 33.45 2006 Series A Single Family Housini N SD Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present Dated Date Issuer I Series Central Use of Proceeds Bid Istate 06/14/2006 South Dakota Housing Dev Auth 56.56 2006 Series B Sin le Family Housin N SD 06/14/2006 Oregon Dept of Trans nation 50.14 Sr Series 2006 B-1 Transportation N OR 06/13/2006 Massachusetts Education Fin Auth 105.00 Series 2006 C&D Student Loans N MA 06/13/2006 Massachusetts Education Fin Auth 207.88 Sets 2006 AI-A2&B Student Loans N MA 06/12/2006 Detroit Retirement Sys Fund Tt 148.54 Series 2006 Gent Purpose/Public Imp N MI 06/08/2006 Rhode Island Convention Ctr Auth 92.50 2006 Series A Genl Purpose/Public lmr N RI 06/07/2006 Lancaster Municipal Author 12.59 Series B of 2006 Nursing Homes/Life Care N PA 06/07/2006 Montgomery Co-Maryland 50.00 2006 Series B Gent Purpose/Public Imp N MD 06/07/2006 Lancaster Municipal Authorig 24.51 Series A of 2006 Nursing Homes/Life Care N PA 06/06/2006 Broward Co School Board 202.11 Series 2006 A Education N FL 06/06/2006 Broward Co School Board 65.00 Series 2006 B Education N FL 06/01/2006 New Jersey Trans Trust Fund Au 109.38 2006 Series B Transportation N NJ 06/01/2006 New Jersey Trans Trust Fund Au 2,696.04 2006 Series A&C Transportation N NJ 06/01/2006 New York City-New York 600.00 2006 SerJ Sub J-1 Gent Purpose/Public Imp N NY 06/01/2006 Texas 50.00 Series 2006 A Single Family Housitu N TX 06/01/2006 Texas Transportation Commissior 750.00 Series 2006 Transportation N TX 06/01/2006 El Paso Co Socorro ISD 33.90 Series 2006 Education N TX 05/31/2006 Wyoming Community Dev Authorit, 40.00 2006 Series 4 Single Family Housinj N WY 05/31/2006 Connecticut 200.00 2006 Series B Genl Purpose/Public lmr N CT 05/31/2006 So California Tobacco See Auth 583.63 Series 2006 A-D Gent Purpose/Public Imr N CA 05/31/2006 Wyoming Community Dev Authorir 10.00 2006 Series 5 Single Family Housin N WY 05/25/2006 Palm Beach Co School Board 222.02 Series 2006 A Education N FL 05/24/2006 Maryland Dept of Hsg&Comm Dev 23.54 Series 2006 E Single Family Housin N MD 05/24/2006 Maryland Dept of Hsg&Comm Dev 56.46 Series 2006 F Single Family Housin N MD 05/24/2006 South Indian River Water Cen DI 18.60 Series 2006 A&B Water,Sewer&Gas Facs N FL 05/24/2006 Florida Housing Finance Corr 100.00 2006 Series 2&3 Single Family Housinj N FL 05/24/2006 Omaha Public Power Dt 200.00 2006 Series A Electric&Public Power N NE 05/24/2006 Maryland Dept of Hsg&Comm Dev 40.00 Series 2006 G Single Family Housinj N MD 05/23/2006 Wisconsin Hsg&Econ Dev Auth 73.17 Series 2006 D Single Family Housinj N WI 05/23/2006 Wisconsin Hsg&Econ Dev Auth 174.42 Series 2006 C Single Family Housinj N WI 05/17/2006 Michigan Tobacco Settle Fin Autf 417.88 Series 2006 A&C Gent Purpose/Public Imp N MI 05/17/2006 Michigan Tobacco Settle Fin Auth 72.62 Series 2006 B Genl Purpose/Public Imp N MI 05/15/2006 District of Columbia 76.41 Series 2006 A2 Genl Purpose/Public Imp N DC 05/15/2006 District of Columbia 354.97 Series 2006 Bl Genl Purpose/Public Imp N DC 05/15/2006 Lower Colorado River Authorig 135.93 Series 2006 Electric&Public Power N TX 05/15/2006 Lower Colorado River Authorig 80.31 Series 2006 Electric&Public Power N TX 05/15/2006 Rockwall Co Rockwall ISD 32.00 Series 2006 Education N TX 05/11/2006 Sacramento Co Pub Facs Fin Auth 40.86 Genl Purpose/Public Imr N CA 05/10/2006 Texas 22.33 Series 2006 A Single Family Housinj N TX 05/10/2006 Texas Veterans Land Board 31.03 Series 2006 A Single Family Housin N TX 05/04/2006 Georgia Housing Finance Authorjt3 1.84 2006 Series A Sub-1 Single Family Housinj N GA 05/04/2006 Georgia Housing Finance Authorit3 68.17 2006 Series A Sub 2 Single Family Housinj N GA 05/04/2006 Knox Co Hlth Ed&Hsg Facs Board 30.00 Series 2006 E Health Care N TN 05/04/2006 Lorain Co-Ohio 375.00 Ser 2006 A-D,G,H Health Care N OH 04/28/2006 NYC Housing Dev Corp 50.10 Series 2006 B Multi Family Housin N NY 04/28/2006 NYC Housing Dev Corp 122.44 2006 Series A Multi Family Housin N NY 04/28/2006 NYC Housing Dev Corp 183.66 2006 Series A Multi Family Housin N NY 04/27/2006 Maryland Dept of Hsg&Comm Dev 2.12 Series 2006 C Single Family Housin N MD 04/27/2006 Maryland Dept of Hsg&Comm Dev 15.60 Series 2006 A&B Single Family Housinj N MD 04/25/2006 Bay Area Toll Authori 1,149.21 2006 Series F Transportation N CA 04/19/2006 New York 43.17 Series 2006 D Gen]Purpose/Public Imr N NY 04/19/2006 New York 118.85 Series 2006 C Genl Purpose/Public Imr N NY 04/19/2006 Pima Co Tucson USD#1 47.83 Series 2006 Education N AZ 04/19/2006 California Housing Finance Age) 25.00 2006 Series B Single Family Housin N CA 04/19/2006 California Housing Finance Agc3 175.00 2006 Series C Single Family Housin N CA 04/15/2006 Tarrant Co Carroll ISD 38.07 Series 2006 A&B Education N TX 04/15/2006 El Paso City-Texas 56.35 Series 2006 Gent Purpose/Public Imr N TX 04/11/2006 Miami-Dade Co School Board 208.15 Series 2006 B Education N FL 04/I 1/2006 Louisiana Citizens Prop Ins Corp 678.21 Series 2006 B Gent Purpose/Public lmr N LA 04/11/2006 New York City-New York 375.00 Fisc'06 Subser I-1 Genl Purpose/Public Imp N NY 04/11/2006 Louisiana Citizens Prop Ins Corp 300.00 Series 2006 C Gent Purpose/Public lmr N LA 04/07/2006 NYC Housing Dev Corp 55.00 Series 2006 B Multi Family Housin N NY 04/07/2006 NYC Housing Dev Corp 162.00 Series 2006 A Multi Family Housing N NY 04/05/2006 Nassau Co Tobacco Settlement 8.53 Series 2006 Al Gent Purpose/Public Imp N NY 04/05/2006 Nassau Co Tobacco Settlement 34.12 Series 2006 Al Genl Purpose/Public lmr N NY 04/05/2006 Nassau Co Tobacco Settlement 77.68 Ser 06 A2,A3.B-E Genl Purpose/Public Imp N NY Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 04/05/2006 Nassau Co Tobacco Settlement 310.71 Set 06 A2,A3,B-E Gen]Purpose/Public Imp N NY 03/30/2006 Miami-Florida 3.85 Series 2006 Transportation N FL 03/30/2006 Miami-Florida 36.81 Series 2006 Transportation N FL 03/23/2006 Florida Housing Finance Corr 75.00 2006 Series I Single Family Housinj N FL 03/23/2006 Alaska Housing Finance CorT 75.00 2006 Series B Single Family Housin N AK 03/23/2006 NYC Municipal Water Finance Auth 406.21 Fiscal 06 Ser D Water,Sewer&Gas Facs N NY 03/16/2006 Massachusetts Water Resources Au 486.32 2006 Series A&B Water,Sewer&Gas Facs N MA 0 311 6/2 00 6 NYS Housing Finance A enc 79.47 2006 Series A&C Single Family Housinj N NY 031l6/2006 NYS Housing Finance A enc 83.44 2006 Series B Single Family Housin N NY 03/16/2006 Cincinnati Comm Sis Mercy Amei 5.80 Sereis 2006 Education N OH 03/16/2006 Louisville-Jefferson Co Metro Gov 15.11 Series 2006 Industrial Development N KY 03/16/2006 Port of Greater Cincinnati Dev At 5.78 Series 2006 Economic Development N OH 03/16/2006 Univ of So Florida(USF)Fin CoTT 23.67 Series 2006 A-2 Education N FL 03/15/2006 New Jersey Hsg&Mtg Fin Agency 11.48 2006 Series B Multi Family Housing N NJ 03/15/2006 New Jersey Hsg&Mtg Fin Agency 24.79 2006 Series A Multi Family Housinj N N1 03/15/2006 Garland City-Texas 25.05 Series 2006 Electric&Public Power N TX 03/14/2006 Maine State Housing Authorit) 6.68 2006 Series A-1 Single Family Housinj N ME 03/14/2006 Maine State Housing Authori 5.00 2006 Series B Single Family Housinj N ME 03/14/2006 Maine State Housing Authorig 90.00 2006 Series C Single Family Housinj N ME 03/09/2006 Connecticut 1.96 2006 Series A-1 Genl Purpose/Public Imp N CT 03/09/2006 Connecticut 10.00 2006 Series A Gen]Purpose/Public Imp N CT 03/09/2006 Connecticut 41.50 2006 Series A-4 Genl Purpose/Public Imp N CT 03/09/2006 Connecticut 65.00 2006 Series A-3 Genl Purpose/Public Imr N CT 03/09/2006 Connecticut 181.54 2006 Series A-2 Genl Purpose/Public Imp N CT 03/09/2006 NYS Mortgage Agency 28.73 Series 131 Single Family Housinj N NY 03/09/2006 NYS Mortgage Agency 34.00 Series 132 Single Family Housinj N NY 03/09/2006 NYS Mortgage Agency 48.06 Series 130 Single Family Housin N NY 03/09/2006 California Health Facs Fin Autt 342.80 2006 Ser AI-2&13I-2 Health Care N CA 03/08/2006 Massachusetts St College Bldg Au 98.03 Series 2006 A Education N MA 03/08/2006 Orange Cc Sanitation Dt 200.00 Series 2006 Solid Waste/Resource Rec N CA 03/07/2006 Indianapolis Loc Pub Imp Bond BY 77.83 Series 2006 A Water,Sewer&Gas Facs N IN 03/02/2006 Rhode Island Econ Dev Corp 42.82 Series 2006 A Transportation N RI 03/02/2006 Rhode Island Econ Dev Corp 184.62 Series 2006 A Transportation N RI 03/02/2006 Connecticut Housing Finance Autt 3.80 2006 Series C Single Family Housinj N CT 03/02/2006 Connecticut Housing Finance Autt 50.00 2006 Ser A Sub A-1 Single Family Housinj N CT 03/02/2006 Massachusetts Bay Transport Autb 240.57 2006 Series A Transportation N MA 02/28/2006 Wyoming Community Dev Authorit, 8.00 2006 Series 2 Single Family Housinj N WY 02/28/2006 Wyoming Community Dev Authorit, 32.00 2005 Series 1 Single Family Housinj N WY 02/28/2006 Wyoming Community Dev Authorit, 40.00 2005 Series 3 Single Family Housin N WY 02/28/2006 Oregon Hsg&Comm Svcs Dept 19.79 2006 Series B Single Family Housing N OR 02/28/2006 Oregon Hsg&Comm Svcs Dept 20.21 2006 Series A Single Family Housiru N OR 02/28/2006 Oregon Hsg&Comm Svcs Dept 20.00 2006 Series C Single Family Housinf N OR 02/23/2006 Maryland Community Dev Admit 12.02 2006 Series A Single Family Housinj N MD 02/23/2006 Maryland Community Dev Admir 24.88 Series 2006 D Single Family Housinj N MD 02/23/2006 Maryland Community Dev Admir 47.98 2006 Series B Single Family Housinj N MD 02/23/2006 Maryland Community Dev Admit 95.12 Series 2006 C Single Family Housinj N MD 02/16/2006 NYC Housing Dev Corp 8.00 2006 Series B Multi Family Housin N NY 02/16/2006 NYC Housing Dev Corp 104.00 Series 2006 A Multi Family Housin N NY 02/15/2006 EI Paso City-Texas 37.75 Series 2006 Water,Sewer&Gas Facs N TX 02/15/2006 San Francisco Airport Commissior 114.20 Second Ser 33 B&C Airports N CA 02/15/2006 Dallas Co Dallas ISD 290.21 Series 2006 Education N TX 02/08/2006 California Co Tobacco Sec Agency 319.83 Series 2006 A-C Genl Purpose/Public Imp N CA 02/08/2006 TSASC Inc 1,353.51 Series 2006-1 Gerd Purpose/Public lour N NY 02/02/2006 CIVICVentures 110.92 Series 2006 Genl Purpose/Public Imr N AK 02/01/2006 South Carolina Public Service At 129.12 2006 Series B Electric&Public Power N SC 02/01/2006 South Carolina Public Service AL 470.77 2006 Series A Electric&Public Power N SC 02/01/2006 Montgomery Co(Montgomery)ISD 41.66 Series 2006 A&B Education N TX 01/31/2006 Wisconsin 96.78 2006 Series 17 Genl Purpose/Public 1mr N WI 01/26/2006 Alaska Housing Finance Co 98.68 2006 Series A Single Family Housin N AK 01/26/2006 Jacksonville Electric Authorit) 119.00 Series 2006 A Electric&Public Power N FL 01/26/2006 NYC Municipal Water Finance Auth 600.35 2006 Series B-C&BB Water,Sewer&Gas Facs N NY 01/25/2006 Metro Washington Airports Auth 300.00 Series 2006 A Airports N DC 01/24/2006 NYS Power Authority 17.25 Series 2006 A Electric&Public Power N NY 01/24/2006 NYS Power Authority 34.51 Series 2006 A Electric&Public Power N NY 01/24/2006 NYS Power Authority 34.51 Series 2006 A Electric&Public Power N NY 01/24/2006 NYS Power Authority 86.26 Series 2006 A Electric&Public Power N NY Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 01/19/2006 Rhode Island Hsg&Mtg Fin Co 7.61 Series 51-B Single Family Housini N RI 01/19/2006 Rhode Island Hsg&Mtg Fin Corp 47.17 Series 51-A Single Family Housinj N RI 01/19/2006 Sacramento MUD Fin Autl 300.38 Series 2006 Electric&Public Power N CA 01/19/2006 Wisconsin Hse&Econ Dev Auth 40.00 2006 Series B Sin le Family Housin N 01/19/2006 Wisconsin Hs &Econ Dev Auth 160.00 2006 Series A Single Fa mil WI Housin N WI 01/18/2006 NYS Environmental Facs CorT 110.60 Series 2006 A Gerd Purpose/Public Imp N NY 01/13/2006 Montgomery Co H hr Ed&Hlth AL 30.00 Series 2006 A Health Care N PA 01/11/2006 South Dakota Housing Dev Auth 33.36 2005 Series J Single Family Housinj N SD 01/11/2006 South Dakota Housing Dev Auth 116.65 2005 Series K Single Family Housing N SD 01/05/2006 Empire State Development Co 56.92 Series 2005 B Gent Purpose/Public Imp N NY 12/29/2005 NYC Housing Dev Co 55.00 2005 Series B Multi Family Housin N NY 12/29/2005 Maine State Housing Authori 22.30 2005 Series G Single Family Housiru N ME 12/29/2005 NYC Housing Dev Corp 28.40 2005 Series A Multi Family Housins N NY 12/28/2005 NYC Housing Dev Corp 25.34 2005 Series G&J-1 Multi Family Housin N NY 12/28/2005 NYC Housing Dev Corp 49.88 2005 Series K&L Multi Family Housinu N NY 12/28/2005 NYC Housing Dev Co 22.09 2005 Series I&J-2 Multi Family Housin N NY 12/28/2005 NYC Housing Dev Co 30.10 2005 Series H Multi Family Housin N NY 12/27/2005 West Palm Beach Comm Redev An 17.53 Series 2005 A Gen[Purpose/Public Im N FL 12/22/2005 Indian Trail Improvement Di 9.92 Series 2005 Water,Sewer&Gas Facs N FL 12/22/2005 New York City-New York 850.00 Fiscal 2006 Series G Genl Pu ose!Public Imp N NY 12/21/2005 Montgomery Co Hsg Oppties Comm 11.60 2005 Series C Single Family Housinf N MD 12/21/2005 Montgomery Co HsS Oppties Comm 13.40 2005 Series D Single Family Housin N MD 12/21/2005 Massachusetts Bay Transport Auth 92.77 Series 2005 B Transportation N MA 12/21/2005 New Jersey Economic Dev Auth 500.00 Ser 2005 Sub 0 1- 8 Education N NJ 12/20/2005 Downtown Phoenix Hotel Corp 28.87 Series 2005 C Genl Purpose/Public Imr N AZ 12/20/2005 Downtown Phoenix Hotel Co 321.14 Series 2005 A&B Gerd Purpose/Public Imr N AZ 12/20/2005 Pennsylvania H hr Ed Assist A c 500.00 Sr Series GGl-GG6 Student Loans N PA 12/15/2005 NYS Dorm Authority 201.55 Series 2005 E&F Health Care N NY 12/15/2005 Orlando Utilities Commissior 120.00 Series 2005 B Combined Utilities N FL 12/14/2005 )T1s-consinHsg&Econ Dev Auth 12.77 Series 2005 D Single Famil Housinj N WI 12/14/2005 Wisconsin Hsg&Econ Dev Auth 29.38 Series 2005 E Single Famil Housin N WI 12/14/2005 Maryland Community Dev Admit 5.00 Series 2005 B Multi Family Housin N MD 12/14/2005 Maryland Community Dev Admit 13.99 Series 2005 C Single Family Housin N MD 12/14/2005 Wisconsin Hsg&Econ Dev Autb 9.89 Series 2005 - Single FamilyHousin N WI 12/14/2005 Wisconsin Hs &Econ Dev Auth 127.50 Series 2005 F Single Family Housing N WI 12/13/2005 Detroit City-Michigan 82.57 Series 2005 B&C Genl Purposei Public Inir N MI 12/08/2005 Califomia Infrstr&Eco Dev Bank 36.94 Series 2005 A&B Education N CA 12/08/2005 Tallahassee City-Florida 128.92 Series 2005 Electric&Public Power N FL 12/07/2005 Connecticut Housing Finance And 2.43 2005 Series E-3 Single Family Housini N CT 12/07/2005 Connecticut Housing Finance Autl 4.15 2005 Series E-1 Single Family Housin N CT 12/07/2005 Connecticut Housing Finance Autt 29.67 2005 Series E-2 Single Family Housinf N CT 12/07/2005 Metropolitan Trans ortation Auth 468.76 Series 2005 F Transportation N ,NY 12/07/2005 Indiana Finance Authori 277.93 Series 2005 A Water,Sewer&Gas Facs N IN 12/07/2005 NYS Dotm Authori 836.19 Series 2005 F Education N NY 12/07/2005 Metropolitan Transportation Auth 173.37 Series 2005 H Trans ortation N NY 12/07/2005 Indianapolis Loc Pub Imp Bond Bk 47.81 Series 2005 H Water,Sewer&Gas Facs N IN 12/07/2005 Connecticut Housing Finance Autt 54.77 2005 Series E-5&F Single Family Housinf N CT 12/06/2005 Maine State Housing Authori 6.33 2005 Series E1 Single Famil Housinj N ME 12/06/2005 Maine State Housing Authori 23.67 2005 Series E2 Single Family Housinj N ME 12/06/2005 Maine State Housing Authoriq 00.00 2005 Series F Single Family Housinf N ME 12/06/2005 No Califomia Tobacco Sec Auth 255.49 Series 2005 A,B&C Gent Purpose/Public Imr N CA 12/01/2005 Omaha Public Power Dt 112.00 2005 Series A Electric&Public Power N NE 12/01/2005 North Wales Water Author 26.84 Series of 2005 Water,Sewer&Gas Facs N PA 12/01/2005 North Texas To[[way Authoriq 341.67 Series 2005 C Transportation N TX 11/30/2005 Iowa Tobacco Settlement Auth 222.91 Series 2005 A Gen]Purpose- N IA 1 1/30/2005 Iowa Tobacco Settlement Auth 609.05 Series 2005 B-E Gent Pu ose Public Im N IA 11/22/2005 Empire State Develo meat Co 270.10 Series 2005B Gent Purpose/Public Im N NY 11/22/2005 Pennsylvania Finance Authont3 62.50 2005 Series A Gent Purpose/Public Imr N PA 11/22/2005 Pennsylvania Finance Authorio 125.00 2005 Series B Gcnl Purpose/ose!Public Im N PA 11/17/2005 New Jersey322.90 Series M&N Genl Purpose/Public Imp N NJ 11/17/2005 Florida Housing Finance C'OIT 7.30 Series 2005-2 Single Family Housing N FL 11/17/2005 Florida Housing Finance CorT 59.79 Series 2005-3 Single Family Housin N FL 1 1/1 712 005 Franklin Co-Ohio 43.19 Series 2005 A Health Care N OH 11/17/2005 Michigan State Hospital Fin Aut1 43.55 Series 2005 D Health Care N MI 11/17/2005 Indianapolis Loc Pub Imp Bond Bk 70.26 Series 2005 F Water,Sewer&Gas Facs N IN 11/17/2005 NYS Mort a e A enc 20.61 Series 127 Single Famil Housin N NY Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 11/17/2005 NYS Mortgage A enc 45.40-cries 128 Sin lc Family Housin 11/17/2005 Jacksonville Electric Authori N NY 11.99 Isuue Two Set 21 Electric&Public Power N FL 11/17/2005 Jacksonville Electric Authori 96.50 Issue Two Set 20 Electric&Public Power 11/17/2005 Jacksonville Electric Authori N FL 213.20 Issue Two Set 21 Electric&Public Power 11/17/2005 Franklin Co-Ohio 59.00 Series 2005 B Health Care N FL 11/17/2005 Indiana H&E Fac Fin Auff N OH 31.55 Series 2005 I Health Care N IN 11/17/2005 Indianapolis Loc Pub Imp Bond Bk 300.92 Sers 2005 G-1&G-2 Water,Sewer&Gas Facs N 11/17/2005 Iowa Finance Authori IN 15.88 Series 2005 C 11/1 Health Care N IA 11/16/2005 Michigan State Hos ital Fin Autt 72.80 Series 2005E&G Health Care l l/16/2005 Massachusetts Wit Pollut Abate Tr N MI 293.76 Series 11 Water,Sewer&Gas Facs N 11/16/2005 NYS Dorm Authori 345.32 Series 2005 Health Care MA 11/16/2005 Gainesville Ci -Florida N NY 61.59 2005 Series B Electric&Public Power N FL 11/]6/2005 Gainesville City-Florid, 196.95 2005 Series A Electric&Public Power 1 I/I6/2005 NY Convention Center Dev Co N FL 700.00 Series 2005 Gent Pu ose/Public Ira N NY 11/16/2005 Gainesville Ci -Floridz 55.14 2005 Series C Electric&Public Power N 11/16/2005 Texas FL 22.80 Series 2005 Genl Purpose/Public Imr N TX 11/15/2005 Fla lerCo Fla let SI) 72.40 Series A&B Education 11/15/2005 Berks Co-Pennsylvania N FL 9.42 Series of 2005 Genl Purpose/Public Imp N PA 11/10/2005 Maryland Community Dev Admit 13.49 2005 Series D Single Famil Housin 11/10/2005 Maryland Communi Dev Admit N MD 46.52 2005 Series E Single Family Housin N MD 11/l0/2005 Maryland Communi Dev Admit 91.80 2005 Series F Multi FamilyHousin 11/10/2005 Maryland Communi Dev AdmitN MD ]03.21 2005 Series G Multi Family Housin 11/I0/2005 CaliforniaN MD 3,-90.00 2005-06 Series Gerd Purpose/Public Im N 11/08/2005 Oregon Hs 13 78 00 S i E &Comm Svcs Devi CA . 25 eres Single Family Housin N OR 11/08/200I Ore on Hs &Comm Svcs De t 26.34 2D05 Series D Single Famil Housin 11/08/2005 NYC Industrial Dev A enc 800 Sri N OR .0 0 Series 2005 Airports N NY 11/03/2005 Anchors e-Alaska 25.75 Series 2005 B Electric&Public Power N 11/03/2005 Anchora e-Alaska AK 109.35 Series 2005 A Electric&Public Power N AK 11/03/2005 NYC Transitional Finance Auth 597.24 2006 Set A Sub A1,2 Genl Purpose/ose/Public Im N 11/02/2005 W omin Communi Dev Authorib NY 6.53 2005 Series 6 Single Family Housin N WY 11/02/2005 W omin Communi Dev Authorib 25.47 2005 Series 5 Single FamilyHousing 11/02/2005 Wisconsin Public Power Inc S sN WY 143.02 Series 2005 A Electric&Public Power N W1 11/02/2005 Metropolitan Transportation Auth 150.00 Series 2005C Transportation 11/02/2005 Wisconsin Public Power Inc Sys N NY 93.90 Series 2005 B Electric&Public Power N WI 11/02/2005 Wyoming Community Dev Authorir 8.00 2005 Series 7 Single FamilyHousing 11/01/2005 Harris Co Health Facs Dev CoN WY 131.70 Sereis 2005 Health Care l 1/01/2005 California St Public Works Board 469.81 2005 Series H-K Genl Purpose/Public Ira l 1/01/2005 Arizona Transportation Board Series N TX CA 118.25 ies 2005 B Transportation 11/01/2005 El Paso Co Hospital Dt N AZ120.00 Series 2005 Health Care 10/27/2005 New JerseyTrans Trust Fund Au N 953.02 2005 NJ Series D Transportation N NJ 10/27/2005 So Central Conn Reg Water Au 23.41 Twentieth Series Water,Sewer&Gas Facs N 10/26/2005 Michigan State Building,Autl 1 CT 242.8 2005 Series II Gcnl Pu Purpose/Public Ira N MI 10/25/2005 Nebraska Public Power Dt 131.89 2005 Series C Electric&Public Power 10/20/2005 Los Angeles Co Sanit Dt Fin Auth N NE 182.92 2005 Series B Water,Sewer&Gas Facs N CA 10/20/2005 Massachusetts Education Fin Auth 211.85 Issue E Ser 2005 A-D Student Loans 10/l9/2005 BexarCo-Texas N MA 10 .0 Series A Genl Pu Purpose/Public Ira N TX 10/18/2005 Mont ome Co Hs O ties Comm 12.04 2005 Series A Multi Family Housin 10/18/2005 NYC Munici al Water Finance Auth N MD 10/13/2005 524.53 Fiscal 2006 Series A Water,Sewer&Gas Facs N NY Los An elcs Harbor De t 43.73 Series 2005 C-1 Seaports/Mar Marine Terminals 10/13/2005 Los An eles Harbor De t N CA 60.04 Series 2005 A&B Sea orts/Marine Terminals N CA 10/12/2005 Georgia Muni Electric Auth 28.85 Series 2005E Electric&Public Power 10/12/2005 Metro Washin ton Ai orts Auth N GA 11.45 Series 2005 D Al orts N DC 10/12/2005 NYS Environmental Facs Co 221.01 Series 2005 C Water,Sewer&Gas Facs 10/12/2005 Massachusetts N NY 60.10 Series D of 2005 Genl Purpose/Public Ira N MA 10/11/2005 Massachusetts 701.10 Series C of 2005 Genl Pu ose/Public Ira l0/Il/2005 HoustonCi -Texas N MA 144.92 Series 2005A Combined Utilities N TX 10/06l2005 0/06/2005 Riverside Ci -Califomiz 61.13 Issue of 2005 Water,Sewer&Gas Facs N CA Riverside Ci -Califomia 115.7 Issue Series A&B Electric&Public Power N CA 10/04/2005 South Carolina Public Service At 278.01 2005 Series B Electric&Public Power 10/04/2005 South Carolina Public Service AL � N SC 1 5.30 2005 Series A Gent Purpose/ose/Public Ira N SC 10/01/2005 No Harris Mont ome Com Coll Di 47.65 Series 2005A Education 10/01/2005 San Antonio Ci -Texas N TX 197.34 Series 2005A Electric&Public Power N TX 09/29/2005 Wisconsin Hs &Econ Dev Auth 37.23 2005 Series D Single FamilyHousin 09/29/2005 Jacksonville Electric AuthoriN WI l 17.70 2005 Series A&C Water,Sewer&Gas Facs N FL 09/29/2005 NYS Thruwa Authori 295.57 Series G Transportation 09/29/2005 NYS Thruwa AuthoriN NY 443.36 Series G Transportation N NY Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present Dated Date I�sucr ScritA General Use of Proceeds INd S(ate 09/28/2005 Houston Ci -Texas 250.86 Series 2005 Combined Utilities N TX 09/28/2005 Virginia Transportation Board 250.00 Series 2005 Transportation N VA 09/23/2005 NYC Housing Dev Corp 69.31 Series 2005 E&F-1 Multi Family Housin N NY 09/23/2005 NYC Housing Dev Corp 80.94 Series 2005 F-2 Multi Family Housinj N NY 09/22/2005 Miami Beach Redevelopment A c 29.33 Sereis 2005 B Genl Purpose/Public Imp N FL 09/22/2005 Miami Beach Redevelopment Age) 51.44 Series 2005 A Gen[Purpose/Public Imp N FL 09/22/2005 New York City-New York 600.00 Fis 06 Ser F Sub F-1 Genl Purpose/Public Imr N NY 09/15/2005 California Statewide Comm Dev At 27.32 Series 2005A&B Education N CA 09/15/2005 California Statewide Comm Dev At 0.69 Series 2005A Education N CA 09/14/2005 Indian Trail Improvement D 12.71 Series 2005 Transportation N FL 09/14/2005 Kentucky St Property&Bldg Comrr 218.28 Industrial Develo menl N KY 09/13/2005 Connecticut Housing Finance Autt 1.47 2005 Subseries D-6 Single Family Housin N CT 09/13/2005 Connecticut Housing Finance Aud 3.00 2005 Subseries D-7 Multi Family Housin N CT 09/13/2005 Connecticut Housing Finance Autt 4.58 2005 Subseries D-3 Single Family Housinj N CT 09/13/2005 Connecticut Housing Finance Aud 35.51 2005 Subseries D-I Single Family Housin N CT 09/13/2005 Connecticut Housing Finance Autt 89.05 2005 Subseries D-2 Single Family Housin N CT 09/08/2005 NYS Thruway Authori 278.60 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authorig 278.60 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authorig 278.60 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authori 278.60 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authorit 278.60 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authorit 557.20 Series 2005B Transportation N NY 09/08/2005 NYS Thruway Authori 835.80 Series 2005B Transportation N NY 09/08/2005 Massachusetts Bay Transport Auth 425.00 2005 Series A Transportation N MA 09/07/2005 Sacramento Reg Co Sanit Dt 61.22 Series 2005 Water,Sewer&Gas Facs N CA 09/07/2005 San Fran Bay Area Ra id Trans DI 352.10 Series 2005 A Transportation N CA 09/01/2005 St Louis Municipal Finance Corr 15.49 Series 2005 Genl Purpose/Public Imp N MO 09/O1/2005 Port St Lucie City-Florida 49.29 Series 2005 Seaports/Marine Terminals N FL 09/O1/2005 Salt River Pro'Agric Imp Pwr Dt 327.09 2005 Series A Electric&Public Power N AZ 09/01/2005 Allegheny Co Redevelopment Autt 18.66 Series of 2005 Gent Purpose/Public Imp N PA 09/01/2005 Pittsburgh Urban Redev Authorig 57.47 Series of 2005 Genl Purpose/Public Inar N PA 08/31/2005 South Dakota Housing Dev Auth 27.80 2005 Series E Single Family Housinf N SD 08/31/2005 South Dakota Housing Dev Auth 47.20 2005 Series F Single Family Housing N SD 08/29/2005 Greater New Haven Water PC Au 91.29 2005 Series A Water,Sewer&Gas Facs N CT 08/25/2005 Boynton Beach-Florida 13.22 Series 2005 Genl Purpose/Public Imp N FL 08/25/2005 Ohio Water Development Authori 449.59 Series 2005 B Pollution Control N OH 08/24/2005 Georgia Housing Finance Authorit3 10.24 Series2005A Sub A-2 Single Family Housirif N GA 08/24/2005 Essex Co Improvement Author 11.52 Series 2005 GerdPurpose/Public Imr N NJ 08/23/2005 Maine State Housing Authori 11.13 2005 Series C Multi Family Housinj N ME 08/23/2005 Maine State Housing Authorig 11.13 2005 Series C Single Family Housinj N ME 08/19/2005 Michigan Municipal Bond Autt 521.41 Series 2005 B Genl Purpose/Public Imr N MI 08/18/2005 Pennsylvania H hr Ed Facs Autt 141.62 Series C of 2005 Education N PA 08,117/2005 Massachusetts Schl Bldg Auth 687.50 2005 Series A Education N MA 08/17/2005 Massachusetts Schl Bldg Auth 687.50 2005 Series A Education N MA 08/17/2005 Massachusetts Schl Bldg Auth 1,125.00 2005 Series A Education N MA O8/17/2005 New Jersey Educational Facs Auth 101.93 Series 2002 F&E Education N NJ 08/17/2005 New York City-New York 250.00 Fis 06 Ser E Sub E-1 Genl Purpose/Public Imr N NY 08/04/2005 Georgia Housing Finance Authorit3 14.27 2005 Ser A Sub A-1 Single Family Housin N GA 08/04/2005 Georgia Housing Finance Authori 15.50 Series2005A Sub A-2 Single Family Housinj N GA 08/04/2005 Philadelphia Ci -Penns lvani: 124.99 Series 2005A Airports N PA 08/04/2005 Golden State Tobacco Sec Corp 3,140.56 Series 2005A Gen[Purpose/Public Imp N CA 08/03/2005 Michigan 21.09 Series 2005 C Genl Purpose/Public(mr N MI 08/03/2005 Oklahoma Dept of Transportation 48.88 Series 2005A Transportation N OK 08/03/2005 New York City-New York 846.81 Fiscal 06 Series A-D Gent Purpose/Public Imp N NY 08/02/2005 Maine State Housing Authori 3.00 2005 Series D-1 Single Family Housinj N ME 08/02/2005 Maine State Housing Authori 15.00 2005 Series D-2 Single Family Housinf N ME 08/02/2005 Maine State Housing Authorig 20.00 2005 Series D-3 Single Family Housinf N ME 08/01/2005 Lower Colorado River Authori 126.10 Series 2005 Electric&Public Power N TX 08/01/2005 Dallas Co(Mesquite)ISD 114.82 Series 2005 A Education N TX O8/01/2005 El Paso Co El Paso ISD 64.47 Series 2005 Education N TX O8/O1/2005 El Paso Co Socorro ISD 86.23 Series 2005 A Education N TX 08/01/2005 El Paso Co Ysleta ISD 71.35 Series 2005 Education N TX 08/O1/2005 Bexar Co North East ISD 124.58 Series 2005 Education N TX 0 7/2 812 00 5 NYS Environmental Facs Co 104.72 Series 2005 B Water,Sewer&Gas Facs N NY 07/28/2005 So California Metro Water Dt 100.00 2005 Series A Water Sewer&Gas Facs N CA 07/28/2005 Rhode Island Hsg&Mtg Fin Corp 38.37 Series 50 B Single Family Housinj N RI Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 07/28/2005 Rhode Island Hsg&Mtg Fin Corp 43.14 Series 50 A Single Family Housinj N RI 07/27/2005 Massachusetts 527.64 Series 2005 Genl Pu ose/Public Im N MA 07/26/2005 Wyoming CommunityDev Authorib 8.00 2005 Series 4 Single Family Housing N WY 07/26/2005 Wyoming Community Dev Authorib 32.00 2005 Series 3 Single Family Housinj N WY 07/26/2005 Michigan Municipal Bond Autl 255.68 Series 2005 Water Sewer&Gas Facs N MI 07/19/2005 Pasco Co School Board 35.92 Series 2005 A Education N FL 0 711 3/2 00 5 Anchorage-Alaska 57.90 2005 Series D&E Gcnl Purpose/Public Inar N AK 07/12/2005 Georgia Muni Electric Auth 51.07 Series 2005D Electric&Public Power N GA 07/07/2005 Manchester City-New Hampshire 76.33 Series 2005 A&B Airports N NH 07/07/2005 Cleveland City-Ohio 64.48 Series 2005 N Water,Sewer&Gas Facs N OH 07/07l2005 Michigan 169.60 Series 2005 A&B Genl Purpose/Public Imr N MI 07/06/2005 Tampa City-Florida 56.86 Series 2005 Water,Sewer&Gas Facs N FL 07/O1/2005 Sacramento Co-California 380.00 2005 Series A Genl Pu ose/Public Imp N CA 07M1/2005 Metropolitan Transportation Auth 750.00 Series 2005B Transportation N NY 07/01/2005 Arizona Transportation Board 147.40 Series 2005 A Transportation N AZ 07/O1/2005 Bexar Co Northside ISD 220.00 Series 2005 Education N TX 06/30/2005 Roseville City-California 52.90 Series 2005 A Electric&Public Power N CA O6/30/2005 NYC Housing Dev Corp 30.16 Series 2005 C&D Multi Family Housin N NY 06/30/2005 Detroit City-Michigan 54.45 Series 2005 Genl Purpose/Public Imp N MI 06/30/2005 Roseville City-California 150.00 Series 2005 B&C Electric&Public Power N CA 06/29/2005 St Lucie Co-Florida 11.93 Series 2005 Gen[Purpose/Public Imr N FL 06/29/2005 Oregon 30.00 Series 84 Single Family Housin N OR 06/28/2005 Rhode Island Econ Dev Corp 43.55 Series 2005 A Airports N RI 06/28/2005 Rhode Island Econ Dev Corp 71.71 Series 2005 B&C Airports N RI 06/28/2005 Miami-Dade Co School Board 56.38 Series 2005 A Education N FL 06/28/2005 Dutchess Co Industrial Dev Age Agey 19.98 Series 2005 Health Care N NY 06/23/2005 Tri-Co Metro Trans Dt 79.32 Series 2005 Transportation N OR 06/22/2005 Empire State Development Corp 69.70 Series 2000 A-2 Economic Development N NY 06/22/2005 Empire State Development Corp 134.58 Series 2005 A-1 Economic Develo mein N NY 06/21/2005 Maine 27.10 Genl Purpose/Public Imr N ME 0 612 1/2 00 5 Maine 110.43 Genl Purpose/Public Imp N ME 06/16/2005 Florida Housing Finance Cory 50.00 2005 Series I Single Family Housing N FL 06/16/2005 Massachusetts Hlth&Ed Facs Au 47.53 Series 2005 F-5 Health Care N MA 06/16/2005 Massachusetts Hlth&Ed Facs Au 75.00 Series 2005 F-1 Health Care N MA 06/16/2005 Massachusetts Hlth&Ed Facs Au 105.00 Series 2005 F-3 Health Care N MA O6/16/2005 Anchorage-Alaska 60.00 Genl Purpose/Public Imp N AK 06/15/2005 Connecticut Housing Finance Autl 1.97 2005 Set B Sub B-3 Single Family Housing N CT 06/1 512 00 5 Connecticut Housing Finance Aud 77.08 2005 Ser B Sub B-1 Single Family Housin N CT 06/15/2005 NYS Dorm Authority 383.23 Series 2005A Genl Purpose/Public Imr N NY 06/15/2005 Berks Co Municipal Authorit 195.00 Series 2005 Al to A4 Health Care N PA O6/09/2005 New Jersey Turnpike Authority 32.50 Series 2005 Transportation N NJ 06/09/2005 New Jersey Turnpike Authority 505.06 Series 2005A Transportation N NJ 06/09/2005 Wisconsin Hsg&Econ Dev Auth 35.00 2005 Series C Single Family Housin N WI 06/09/2005 Wisconsin Hsg&Econ Dev Auth 165.00 2005 Series C Single Family Housinj N WI 06/08/2005 Washington Health Care Facs Au 60.00 Series 2005 B Health Care N WA 06/08/2005 Washington Health Care Facs Au 25.00 Series 2005 A Health Care N WA 06/08/2005 Washington Health Care Facs Au 75.00 Series 2005 C Health Care N WA 06/07/2005 Sacramento Co Sanit Dt Fin Auth 165.62 Series 2005 Solid Waste/Resource Rec N CA 06/07/2005 Broward Co School Board 198.13 Series 2005A Education N FL 06/07/2005 Palm Beach Co School Board 38.51 Series 2005 B Education N FL 06/06/2005 Reedy Creek Improvement Dt 99.98 Series 2005 1-2 Water,Sewer&Gas Facs N FL 06/02/2005 East Bay MUD 300.00 Series 2005 A Water,Sewer&Gas Facs N CA 06/02/2005 New York City-New York 853.14 Fiscal 2005 0,P,Q Genl Purpose/Public Imp N NY 06/02/2005 Philadelphia Ci -Penns Ivank 41.00 Series 2005 B Airports N PA 06/02/2005 Detroit Retirement S s Fund Tt 640.00 Series 2005A Gent Purpose/Public lmr N MI 06/02/2005 Minneapolis-St Paul Metro Airport 113.16 Series 2005B Airports N MN O6l02/2005 Minneapolis-St Paul Metro Airport 259.86 Series 2005A&C Airports N MN O6/02,12005 Texas Economic Development Banh 45.00 Series 2005 A&B Economic Develo mem N TX 06/01/2005 Florida Dept of Transportation 62.34 Series 2005A Transportation N FL 06/01/2005 Phoenix City Civic Im rov Corl 600.00 Series 2005 Water,Sewer&Gas Facs N AZ 05/27/2005 Michigan Municipal Bond Auth 12.83 Series 2005A Gen]Purpose/Public[mr N MI 05/26/2005 Empire State Development Corr 288.89 Series 2005A Genl Purpose/Public Imp N NY 05/26/2005 San Fran Bay Area Rapid Trans Dt 100.00 Elec 04 Series 05 A Transportation N CA 05/26/2005 Michigan State Building Autl 293.40 2005 Series I Gent Purpose/Public Imr N MI 05/26/2005 NYS Housing Finance A enc 176.80 2005 Series A Multi Family Housin N NY 05/26/2005 San Francisco Ci /Co-Califomia 40.00 Series 2005C Health Care N CA Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present OS/25/2005 Oregon Hs &Comm Svcs Dept 8.45 2005 Series B Single Family Housin 05/25/2005 Oregon Hs &Comm Svcs Dent N OR 16.06 2005 Series A&B Single Famil Housin N OR OS/25/2005 NYC Housin Dev Co 9.74 2005 Series A-1 05/25/2005 NYC Housin Dev Co Multi Famil Housin N NY 58.58 2005 Series A-2&B Multi Family Housin N NY 05/25/2005 Ore on Hsg&Comm Svcs De t 10.50 2005 Series C Single Famil Hi 05/24/2005 NYC Housin Dev Co ousn N OR 4.80 2005 Series B Multi FamilyHousin N NY OS/24/2005 NYC Housin Dev Co 37.90 2005 Series A OS/23/2005 New Jerse Economic Dev Auth Multi Education Housin N NY 677.47 2005 Series NI&2 Education N NJ OS/l8/2005 Alaska Housin Finance Co 164.50 2005 Series B&C Multi Famil Housin OS/l6/2005 Virginia Tobacco Settle Fin Co N AK 448.26 Series 2005 Genl Purpose/Public Im N VA 0 511 512 00 5 Austin City-Texas 198.49 Series 2005 Water,Sewer&Gas Facs N TX OS/15/2005 Metro olitan Trans ortation Auth 225.00 Series CP-1 SubSer A Trans ortation 05/12/2005 Massachusetts Port Authori N NY 23 L89 Series 2005C Airports N MA 0 511 012 0 0 5 Dallas City-Texas 7.39 Series 2005 Genl Purpose/ose/Public Im OS/10/2005 Dallas City-Texas N TX 156.85 Series 2005 Gent P ose/Public ImpN TX OS/03/2005 W omin Communi Dev Authorib 8.00 2005 Series 2 Single Family Housin 05/03/2005 Wyoming Communi Dev Authorib N WY 32.00 2005 Series 1 Single Famil Housin N WY 04/28/2005 Bristol Res Rec Fac eratin 41.92 Series 2005 Pollution Control 04/28/2005 Omaha Public Power Dt N CT 72.00 2005 Series B Electr c&Public Power N NE PO4/27/2005 4/28/2005 Omaha Public Power Dt 128.00 2005 Series A Electric&Public Power 4/28/2005 New York Ci -New York N NE 857.13 Series 2005 M&N Gen]Purpose/ose/Public Im N NY 4/27/2005 Connecticut 0.80 2005 Series B 4 Genl Purpose/ose/Public Im 4/27/2005 Connecticut N CT 5.83 2005 Series B-8 Gent Purpose/ose/Public Im N CT Connecticut 8.55 2005 Series B-1 Genl Pu ose/Public[m /27/2005 Connecticut N CT 11.05 2005 Series B-2 Genf Purpose/Public ImpN CT 04/27/2005 Connecticut 20.47 2005 Series B. Genl Pu ose/Public Im 0 412 7/2005 Connecticut N CT 24.53 2005 Series B-7 Genl Pu ose/Public Im N CT 04/27/2005 Connecticut 40.17 2005 Series B-6 04/27/2005 Connecticut Genl Pu ose/Public[m N CT 224.17 2005 Series B-3 Genf Pu ose Public Im N CT 04/26/2005 Maine State Housin Author 9.72 2005 Series A-2 Single FamilyHousin 04/26/2005 Maine State Housin AuthoriN ME 11.21 2005 Series A-I Single Famil Housin N ME 04/26/2005 Maine State Housin Authori 15.00 2005 Series B 04/26/2005 Michigan State Hospital Fin Ault Multi Famil Housin N ME 90.39 Series 2005 Health Care N MI 04/26/2005 NYC Municipal Water Finance Auth 559.21 Fiscal 2005 Ser D Water,Sewer&Gas Facs N NY 0 4/2 112 0 0 5 Maryland Communi Dev Admit 19.36 Series 2005E 04/21/2005 NYS Housin Finance A ene Multi Famil Housin N MD 2.00 2005 Series B Multi Famil Housin N NY 04/21/2005 NYS Housin Finance A ene 83.80 2005 Series A 04/20/2005 Sacramento Power Author Multi Famil Housin N NY I22.96 Series 2005 Electric&Public Power N CA 04/20/2005 Texas De t of Hs &Comm Affair< 100.00 2005 Series A 04/15/2005 Wisconsin Hs &Econ Dev Auth Single Famil Housin N TX 28.88 2005 Series A Single Famil Housin N WI 04/IS/2005 North Harris Mont ome Comm Coll D 6.92 Series 2005 Education 04/14/2005 Massachusetts Water Resources Au N TX 416.46 2005 Series A Water,Sewer&Gas Facs N MA 04/l4/2005 Anchors e-Alaska 40.84 Series 2005 Genl Pu ose Public[m N 04/14/2005 Massachusetts Water Resources Au AK 80.29 2005 Series B Water,Sewer&Gas Facs N MA 04/14/2005 Massachusetts Hlth&Ed Facs Au 99.33 Series 2005D Education 04/14/2005 West Palm Beach Ci -Florida N MA 53.33 Series 2005 Water,Sewer&Gas Facs N FL 04/13/2005 South Dakota Housin Dev Auth 28.43 2005 Series A Single Famil Housin 04/13/2005 South Dakota Housin Dev Auth N SD 30.58 2005 Series B Single Famil Housin N SD 04/13/2005 Anchors e-Alaska 111.15 2005 Series A,B,C Gen]Purpose/Public Im 04/13/2005 Wa ne Co At ort AuthN AK 507.14 Series 2005 Airports N MI 04/12/2005 Maine Turn ike Authori 76.72 Series 2005 Transportation 04/12/2005 Wisconsin Hs &Econ Dev Auth N ME 120.00 2005 Series A Single Famil Housin N Wl 04/12/2005 Metro Washin ton Ai rts Auth 19.78 Series 2005 B 04i 12/2005 Metro Washington Ai orts Auth Airports N DC 320.00 Series 2005 A Airports N DC 04/07/2005 Broward Co-Florida 154.14 Series 2005 Genl Purpose/ose/Public Im 04/06/2005 So California Metro Water DI N FL 64.71 2005 Series A Water Sewer&Gas Facs N CA 04/O6/2003 New JerseyEconomic Dev Auth 500.00 Sub-Series M1-M6 Education 04/OS/2005 Ohio Water Development Authori N NJ 105.22 Series 2005 Water,Sewer&Gas Facs N OH 04/01/2005 Contra Costa Water Dt 114.56 Series N Water,Sewer&Ga F N 04/01/2005 NYC Transitional Finance Autt , sacs CA 920.65 Nsc 05 SrAI&2 B1&2 Gen]Purpose/ose/Public ImpN NY 04/O /2005 El Paso City-Texas 36.52 Series 2005 B Water,Sewer&Gas Facs N TX 04/011/2005 E]Paso City-Texas 152.19 Series 2005 04/O1/2005 Ohio Genl Purpose/Public Imr N TX 04/01/2005 100.00 Series 2005A Education N OH California 16.00 Series 04/01/2005 California CA Single Family Housin N CA 205.48 Series CB Single Famil Housin N CA 04/01/2005 California De t of Vet Affair£ 42.60 2005 Series A Sin le Famil Housin N CA Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present Dated Date Issuer par(Sm NI) Seri" Cencral Use of Proceeds Did State 03/30/2005 Maryland Community Dee Admit 12.64 2005 Series A Single Family Housin N MD 03/30/2005 Maryland Community Dev Admit 27.36 2005 Series B Single Family Housinj N MD 03/30/2005 NYS Thruway AuthOTiq 624.57 Series F Transportation N NY 03/30/2005 Maryland Community Dev Admit 20.00 2005 Series C Single Family Housinf N MD 03/29/2005 Tri-Co Metro Trans Dt 65.48 2005 Series A Transportation N OR 03/29/2005 Massachusetts 669.71 2005 Series A Genl Purpose/Public Imp N MA 03/24/2005 Massachusetts Bay Transport Auth 777.39 2005 Series A Transportation N MA 03/24/2005 North Texas Tollway Authori 227.37 Series 2005A Transportation N TX 03/24/2005 Delaware River Jt Toll Bridge Corr 72.65 Series 2005A Transportation N PA 03/24/2005 NYS Mortgage Agency 27.24 Thirty Fifth Series Single Family Housinj N NY 03/24/2005 NYS Mortgage Agency 62.76 Thirty Fifth Series Single Family Housinj N NY 03/24/2005 NYS Thruway Authorig 194.74 Series 2005A Transportation N NY 03/24/2005 Jacksonville Electric Autborig 277.53 2005 Series A Water,Sewer&Gas Facs N FL 03/24/2005 North Texas Tollway Authorig 73.70 Series 2005B Transportation N TX 03/23/2005 Long Beach Ci -CalifomiE 24.97 Series 2005 B Seaports/Marine Terminals N CA 03/23/2005 Long Beach Ci -Califomis 233.01 Series 2005 A Seaports/Marine Terminals N CA 03/23/2005 Regional Transportation Dt 100.19 Series 2005 A Transportation N CO 03/23/2005 Detroit City-Michigan 195.00 Series 2005 B Water Sewer&Gas Facs N MI 03/23/2005 Detroit City-Michigan 231.61 Series 2005 A&C Water,Sewer&Gas Facs N Ml 03/22/2005 Palm Beach Co School Board 124.63 Series 2005 A Education N FL 03/17/2005 NYC Municipal Water Finance Auth 582.92 Fiscal 2005 Ser C Water,Sewer&Gas Facs N NY 03/17/2005 Houston City-Texas 150.00 Series A&B Transportation N TX 03/16/2005 NYS Dorm Authority 40.00 Series 2005 B1&B2 Education N NY 03/15/2005 Garland City-Texas 70.62 Series 2005A Gent Purpose/Public Imr N TX 03/15/2005 Garland City-Texas 20.28 Series 2005 Gent Purpose/Public Imp N TX 03/15/2005 Garland City-Texas 23.68 Series 2005 B Genl Purpose/Public Imf N TX 03/15/2005 Jefferson Co Port Arthur ISD 43.73 Series 2005 A&B Education N TX 03/10/2005 Wisconsin 235.59 2005 Series A Transportation N WI 03/10/2005 NYS Housing Finance A enc 34.99 2005 Series B Multi Family Housinj N NY 03/10/2005 NYS Housing Finance A enc 57.22 2005 Series A Multi Family Housinj N NY 03/09/2005 Tampa Bay Water Auth 174.97 Series 2005 Water Sewer&Gas Facs N FL 03/03/2005 Connecticut Housing Finance Autl 3.51 2005 Ser,Sub A-3 Single Family Housinf N CT 03/03/2005 Connecticut Housing Finance Aud 6.49 2005 Ser A,Sub A-1 Single Family Housinj N CT 03/03/2005 Connecticut Housing Finance Autl 80.01 2005 Ser A,Sub A-2 Single Family Housinj N CT 03/03/2005 NYS Environmental Facs Corr 132.53 Series 2005 A Water,Sewer&Gas Facs N NY 03/03/2005 New York City-New York 950.77 Fiscal 2005 Ser AK Genl Pu use/Public 1mr N NY 03/02/2005 NYS Dorm Authority 172.03 Series 2005A Education N NY 03/O1/2005 Miami-Dade Co Expressway Auth 241.40 Series 2005 A-E Transportation N FL 03/01/2005 Orlando-Orange Co Expressway Au 499.11 Ser05 A1-3 B1-2 C-E Transportation N FL 03/01/2005 El Paso City-Texas 45.66 Series 2005 Water,Sewer&Gas Facs N TX 03/01/2005 Bexar Co Northside ISD 90.64 Series 2005 Education N TX 03/01/2005 El Paso Co Socorro ISD 82.87 Series 2005 Education N TX 03/01/2005 Providence Redevelopment A enc 1.12 2005 Series B Genl Purpose/Public Imp N Rl 03/O1/2005 Providence Redevelopment A enc 67.32 2005 Series A Genl Purpose/Public Imr N RI 02/24/2005 NYS Dorm Authority 664.29 Series 2005 A-D Health Care N NY 02/24/2005 South Carolina Public Service At 78.15 2005 Series C Electric&Public Power N SC 02/23/2005 Lehigh-Northampton Co Airport At 7.21 Series 2005 B Airports N PA 02/23/2005 Lehigh-Northampton Co Airport At 16.88 Series 2005 A Airports N PA 02/17/2005 Nebraska Public Power Dt 75.34 Series 2005 B-1 Electric&Public Power N NE 02/17/2005 Nebraska Public Power Dt 140.61 Series 2005 B-2 Electric&Public Power N NE 02/16/2005 Dallas City-Texas 399.35 Series 2005 A,B,C Gen]Purpose/Public Irar N TX 02/16/2005 Pennsylvania H hr Ed Facs Auth 359.84 Series 2005 A&B Health Care N PA 02/15/2005 Metropolitan Transportation Auth 650.00 Series 2005 A Transportation N NY 02/15/2005 Harris Co Pasadena ISD 6.37 Series 2005 Education N TX 02/15/2005 Harris Co Pasadena ISD 14.61 Series 2005-A Education N TX 02/15/2005 Fort Bend Co(Katy)ISD 52.74 Series 2005 A&B Education N TX 02/10/2005 Wisconsin 430.24 2005 Series 1 Genl Purpose/Public 1mr N WI 02/10/2005 San Francisco Airport Commissior 29.15 Issue 32E Airports N CA 02/10/2005 San Francisco Airport Commissior 31.20 Issue 32D Airports N CA 02/03/2005 Indianapolis Loc Pub Imp Bond M 100.00 Series 2005 A Genl Purpose/Public 1mr N IN 02/01/2005 Pima Co Tucson USD#1 47.00 Series 2005A Education N AZ O1/27/2005 NYS Mortgage Agency 35.00 Series 120 Single Family Housin N NY O1/27/2005 Nebraska Public Power Dt 103.63 2005 Series A Electric&Public Power N NE 01/25/2005 Oregon Dept of Transportation 45.53 Series 2005 A&B Transportation N OR O1/20/2005 California Housing Finance A c 200.00 2005 Series A Single Family Housinj N CA O1/19/2005 New Jersey Trans Trust Fund Au 1,213.14 2005 Series B Transportation N NJ Appendix C Bear Stearns'National Revenue Bond Experience January 1,2005 to Present 01/18/2005 Maine State Housing Authoriq 15.00 2004 Series D-3 Single Family Housin N ME 01/13/2005 Jacksonville Electric Authori 207.91 Ser 3 05 A B&05A Electric&Public Power N FL 01/11/2005 Phoenix City Civic Im rov Corr 130.26 Series 2004A Water,Sewer&Gas Facs N AZ 01/06/2005 Wyoming Community Dev Authoriv 5.00 2004 Series 11 Single Family Housin N WY 01/03/2005 Alaska Housing Finance Corr 143.24 2005 Series A Single Family Housin N AK '01/01/2005 Maine State Housing Authori 23.32 2006 Series A-2 Single Family Housinj N ME Totals; 600 103,169.54 Appendix Appendix D STEVEN DWORKIN, Senior Managing Director, 1999 Avenue of the Stars, 31s` Floor, Los Angeles, California 90067, Tel: (310) 201-2791, sdworkin@bear.com. Mr. Dworkin has 26 years of experience in municipal finance and has extensive experience with all types of municipal transactions. He is the Manager of Bear Stearns' West Coast Public Finance practice and also serves as co-head of Bear Stearns' Public Utilities Group. He has served as senior banker on new money, refunding, and restructuring issues ranging from public utility finance to general fund secured debt to pension obligation bond financing and tobacco securitization. His list of clients includes, among others: Truckee Donner Public Utility District, the City of Los Angeles Department of Water and Power, Modesto Irrigation District, Sacramento Municipal Utility District, Sacramento Regional County Sanitation District, Metropolitan Water District of Southern California, East Bay Municipal Utility District, Southern California Public Power Authority, Nebraska Public Power District, M-S-R Public Power Agency, the Cities of Riverside and Roseville, Orange County Transportation Authority, Toll Road Authority of Orange County,Municipality of Anchorage, Los Angeles County MTA,and the Bay Area Toll Authority. Prior to joining Bear Stearns, Mr. Dworkin was a Vice President at Salomon Brothers and Morgan Stanley. He holds a B.A. degree from Columbia University and a M.B.A. from the Wharton School, University of Pennsylvania. CHRIS ROBERTS, Managing Director, 1999 Avenue of the Stars, 31s` Floor, Los Angeles, California 90067, (310) 201-2648, croberts@bear.com. Mr. Roberts has over fourteen years of municipal finance experience working with a variety of issuers across the country. Since joining Bear Stearns in January 1998, Mr. Roberts has provided quantitative and banking support for Bear Stearns' underwriting assignments for the following issuers, among others: Truckee Donner Public Utility District, Sacramento Regional County Sanitation District, County Sanitation District-1, City of Santa Clara (Silicon Valley Power), Sacramento Municipal Utility District, M-S-R Public Power Agency, Modesto Irrigation District, Southern California Public Power Authority, Transmission Agency of Northern California, the Counties of Sacramento, Contra Costa and San Bernardino and the Municipality of Anchorage. Mr. Roberts holds a B.S. in Finance from the University of Arizona. MARY BURGOYNE SNYDER, Associate Director, 1999 Avenue of the Stars, 31" Floor, Los Angeles, CA 90067, Tel: (310) 201-7871, mbsnyder@bear.com. Ms. Snyder has worked with municipal issuers across the country in structuring new money and refunding issues. In California, Ms. Snyder has served as managing underwriter for various issuers including Truckee Donnor Public Utility District, the Los Angeles Unified School District, the Counties of Contra Costa, Los Angeles and San Bernardino, the Metropolitan Water District of Southern California, Modesto Irrigation District, M-S-R Public Power Agency, and the Southern California Public Power Authority. Prior to joining Bear Stearns over fifteen years ago, Ms. Snyder managed the public finance department at Manufacturers Hanover Trust Company and held positions in corporate and public finance at Dillon,Read&Co. Inc. Ms. Snyder received a Bachelor's degree from American University. DARREN HODGE, Analyst, 1999 Avenue of the Stars, 31" Floor, Los Angeles, California 90067, Tel: (310) 201-7743, dhodge@bear.com. Mr. Hodge joined Bear Stearns in 2004 and will provide analytical support. Prior to joining the firm, he worked as a software engineer for the Department of Defense. Mr. Hodge received his Bachelor of Science in Computer Science, and his Master of Arts in Economics from the University of California, Santa Barbara. UNDERWRITING JOHN YOUNG,Senior Managing Director,383 Madison Avenue, 11th Floor,New York,New York, 10179, Tel: (212) 272-4910,johnyoung@bear.com. Mr. Young is responsible for day-to-day activity on the underwriting desk. He has 29 years of experience in the underwriting, trading, and marketing of municipal securities. In addition to his role as senior underwriter, Mr. Young serves as marketing manager for the Municipal Bond Department. Prior to joining Bear Stearns, Mr. Young worked for Citicorp/Citibank for 15 years, serving at various times as head of its municipal securities commitment desk and as manager of both tax-exempt and taxable fixed income underwriting. Mr. Young is a former governor and past President of the Municipal Bond Club of New York and is a former governor of the Municipal Forum of New York.Mr. Young received a Bachelor of Arts from Hamilton College. ROY CARLBERG, Senior Managing Director, 383 Madison Avenue, 11`h Floor, New York, New York, 10179, Tel: (212) 272-4910, rcarlberg@bear.com. Mr. Carlberg has been with Bear Stearns since 1990 and on the municipal desk since 1993. Mr. Carlberg will assist in managing the pricing, marketing and underwriting of any long-term fixed rate bonds. Additionally, Mr. Carlberg heads up the Firm's long-term competitive bidding efforts for municipal debt. Mr. Carlberg holds a B.S. degree in Economics from Bucknell University. CHRIS TOTA, Senior Managing Director, 1999 Avenue of the Stars, 33'd Floor, Los Angeles, California 90067, Tel: (310) 201-2632, ctota@bear.com. Mr. Tota is manager of Bear Stearns' West Coast Municipal Bond Department. He is responsible for the Firm's retail operation in California and is integrally involved in the primary and secondary market sales of all California issues managed by Bear Stearns. Mr. Tota joined Bear Stearns after working for PaineWebber for 11 years where he managed the New England bond trading desk. Prior to that, he traded institutional serial bonds. Mr. Tota received a Bachelor of Science from New Hampshire College. KYLE PULLING, Senior Managing Director, 383 Madison Avenue, llth Floor, New York, New York, 10179, Tel: (212) 272-4930, kpulling@bear.com. Mr. Pulling heads the Short-Term Marketing Group. Mr. Pulling will be Bear Stearns' primary marketing contact for any short-term bonds issued by the District. He is responsible for underwriting, sales and trading for both competitive and negotiated short-term issues. Besides underwriting activity, Mr. Pulling is involved in maintaining the secondary market in notes for Bear Stearns. Prior to his employment at Bear Stearns, Mr. Pulling worked at Chemical Bank and the European American Bank. Mr. Pulling has a Bachelor of Arts in Economics from Colgate University. CAPITAL MARKETS NAT SINGER, Senior Managing Director, 383 Madison Avenue, 11`h Floor, New York, New York, 10179, Tel: (212) 272-2840, nsinger@bear.com. Mr. Singer is the manager of municipal derivative products at Bear Stearns. He is responsible for structuring and marketing all municipal derivatives on new issues and maintaining secondary markets in these securities. Mr. Singer is also responsible for the design and implementation of innovative financial products to help municipal issuers lower their debt cost, increase earnings on assets and hedge interest rate risk. He also manages the Firm's Municipal Bond Arbitrage efforts and is a frequent speaker on municipal trading strategies,having published numerous articles focusing on analysis of the municipal market. Mr. Singer is a graduate of Princeton University and attended the University of Chicago Graduate School of Business. ANDREW LEVENSON,Associate Director, 383 Madison Avenue, 111h Floor, New York, New York, 10179, Tel: (212) 272-2840, alevenson@beancom. Mr. Levenson joined Bear Stearns in 1999 and transferred to the Municipal Derivative Products Group in 2001. He provides support on all derivative transactions and works closely with the Public Finance Department in pricing various derivative products. He is a graduate of Lehigh University. Appendix Appendix E MARKETING STRATEGY FOR RECOMMENDED STRUCTURE We believe that there are four key elements that distinguish Bear Stearns from our competitors in our ability to price and market the District's debt. These elements are: 5. Experience, expertise and tenure of our entire municipal marketing department; 6. Vertical integration of all key personnel from investment banking, marketing, underwriting, distribution and secondary market support; 7. A customized marketing plan that fully penetrates all potential investor bases; and 8. An unwavering commitment to the highest level of business ethics and fair-play Experience, Expertise and Tenure. Bear Stearns provides the District with a dedicated team of experienced marketing professionals that is unmatched in the tax-exempt arena. John Young, Senior Managing Director and National Marketing Manager will head the sales and underwriting commitment to the District. Mr. Young will be assisted by Roy Carlberg, Senior Managing Director, who will provide additional marketing expertise to the District. Bear Stearns' key municipal institutional sales personnel are among the top of their profession. They possess thorough knowledge of the investment objectives of high-impact institutional investors and are instrumental in providing "at-the-margin" pricing to the District. Most of our salespeople have over ten years of experience in covering their accounts and they know what their customers are seeking. This translates into effective pricing and alertness to every market opportunity available to our issuing clients. Bear Stearns pledges to the District that this dedicated team of senior professionals will direct and execute all assignments to assure optimal pricing in the marketplace. Vertical Integration. The District will be efficiently served only if its investment banker proposes a plan of finance that can be executed in the marketplace. Similarly, a marketing department that proposes a plan consistent with the District's financing objectives is best structured to achieve the lowest possible cost of funding. Bear Stearns provides the District with a fully integrated team of professionals whose knowledge and talents complement each other for optimal results. Our marketing, underwriting and distribution professionals are involved in every phase of pricing. Similarly, Bear Stearns' senior investment bankers for the District are an invaluable resource in our investor outreach efforts. Too often, other firms try to sell a "yield" before they sell a "credit", resulting in less than optimal pricing. Our practice is to get the buyers "invested" in the credit quality, and then force them to compete on the price. We believe that the District's financial management track record are important positive factors in buyers' investment decisions and we use the knowledge of our investment bankers in our marketing efforts to help provide tangible pricing benefits for the District. Customized Marketing Plan. We have designed a customized marketing strategy for the District's potential 2006 water financing. Our marketing strategy will best enable the District to achieve the lowest possible cost of funds, and position the District most favorably for any future issuance in the capital markets. Our marketing plan for the District's financings has several key components: ❑ A premarketing campaign designed to attract the widest universe of buyers and employ an aggressive investor outreach program; and ❑ A pricing and underwriting approach that will seek to explore all structuring alternatives and provide: y Complete penetration of all potential investor sectors; ► Emphasis on ongoing California and local retail investors; and Maximum demand leverage for optimal pricing Specifically, we see three investor sectors (California retail, middle market, and large institutions) whose involvement will be critical to the District's pricing. The following table summarizes key elements of our investor outreach program for each class of potential buyers for the District's financings. Conference call with Municipal Forward (800)Conference Calls Retail Sales Liaisons Calendar highlighting and/or Internet Road show upcoming offerings to investors Notices to Retail Sales Conference calls with all Analysis of recent cash Force well in advance of Investment Specialists positions pricing Retail order pre-marketing Sales Point Identify likely buyers and effort/priority given to Memorandums to sales obtain feedback and retail investors force interest prior to sale date Identify likely buyers and contact each to answer questions Retail Market. Retail participation in the District's offering provides the following benefits: (i) distribution of securities to the least price sensitive and most inelastic investor segment which can provide direct tangible benefits by "through market" or"full market" pricing, often on the front end of the yield curve; (ii) a substantial base to leverage structure and price with institutional investors; (iii) a broad and diverse base of investors, both local and national; (iv) a significant reason for underwriters and traders to position and make markets in the District's securities; and (v) assurance to institutional investors of continual source of demand in the secondary market for their investments should they need to sell securities in the future. Retail investment brokers can provide a significant source of funding by conveying to retail investors that the District's securities provide an opportunity for solid long-term investment. The credit quality, combined with an assurance of retail access to securities,will reap significant benefits. Depending on market conditions at pricing,the District may consider a one-day retail order period the day prior to the anticipated formal pricing. We have found that this produces optimal results without hindering the timing flexibility that can result from more extended retail order periods. All such orders will be compiled and analyzed for overall issue pricing. Local Participation. An important goal is to maximize local participation. As such, Bear Stearns recommends the following priority of orders in regards to the retail order period: 1. Retail orders for investors domiciled in Nevada and Placer Counties will have priority over all other orders during the retail order period. Retail is defined as individual investors, and money managers, investment advisors and trust departments acting on behalf of individual investors. 2. Retail orders entered for investors domiciled outside of Nevada or Placer Counties, but in California, are defined as orders from individual investors only. 3. Only orders for California retail will be accepted during the retail order period. 4. The maximum retail order amount for any one investor is $500,000. Middle Market. The middle market investor base will provide an important link between the retail investor demand and the "high-impact" institutional buyers. Dealer relationships with these second and third tier investors provide significant liquidity in both the primary and secondary markets. Our institutional sales force,and our base of clearing firms will all be deployed to fully access these investors. Business Ethics and Fair-Play. Bear Stearns is unwavering in its commitment to the highest level of business ethics in all of our dealings with issuers, investors, and fellow underwriters. Full disclosure and open communication are essential to assure optimal pricings. We are proud of our reputation as a leader, as well as a senior manager. Our reputation for providing open access to all finance team members, extensive two-way communication, execution of in-state retail distribution goals has been a key element in the successful marketing of our senior managed transactions. SPECIFIC RECOMMENDATIONS TO IMPROVE MARKETING We are confident that our customized marketing plan will provide the District with the lowest possible cost of funds. In addition,we offer the following recommendations to facilitate an even greater efficiency when accessing the capital markets. Expedite Documentation. The sooner the District can have its documents in investors' hands, the greater flexibility the District will have. Many of the "high impact" buyers in this sector of the interest rate cycle "hedge" or"arbitrage" their purchases in the municipal market. As a result, movements in the hedging market tend to increase municipal market volatility. With documents in place, the District will be capable of entering the market quickly whenever the optimal moment arises. The object is to get the best price in the marketplace at the best point in the market. Investor Outreach and Education. With the proliferation of budget deficits in many states and counties around the country and the increased focus on California's financial stress, it is imperative that the District initiate an aggressive investor outreach program to highlight the District's past and present fiscal strategy. Similar to presentations to rating agencies and credit providers, the investor outreach is designed to inform and attract all potential investors through a complete disclosure of the District's positive credit qualities. Investor Calls. An important aspect of a successful bond sale is buyer education. Bear Stearns is a strong believer in investor calls involving potential investors and the issuer's finance professionals. As part of our extensive experience in this area and,based on a strong understanding of buyers' current concerns,we have been quite successful in preparing our clients for investor calls, where applicable. Our assistance includes the development of presentation materials to be used for calls as well as furnishing management with anticipated concerns that may be raised by investors. Internet Road Show. Bear Stearns has been at the forefront in the utilization of internet road shows as an important component of successful new issue marketing. We have developed and implemented internet road shows for several of our public finance clients with universally positive results. AMK cibgroupJ corporate and investment banking TRUCKEEI DONNER PUBLIC UTILITY DISTRICT PROPOSAL TO PROVIDE UNDERWRITER SERVICES ,lfaTRUCKEE U B L I UTILITY DISTRICT AUGUST 71, 2006 C�rii�zct�Cr,ic��r[<�itan_;I� i�€..,arrvil3n,;K;^ace 3912Sry rsiErzlinaT.SV t\.;-NT(l,CA958_1 P+nne(9!6)4RS_4 lq F,,\:(910)488.71)9 444 SOUTH FLOWER a Srp rr. F.[,na.L«s A+vci��-s.CA Q1,071 NONE: (,'13)486-7110 FAV(2.13)486-S4I8 atigroupi corporate and investment banking August 7,2006 Ms.Mary Chapman Administration Services Manager Truckee Donner PUD 11570 Donner Pass Road Truckee,CA 96160 Dear Ms. Chapman: On behalf of Citigroup Corporate and Investment Banking,we thank you for giving us the opportunity to respond to your request for proposal to serve as Truckee Donner Public Utility District's senior managing underwriter for the upcoming transaction. We understand the challenges faced by the District and the underlying fundamental strengths of the District. As the largest financial services company in the world, Citigroup is committed to working closely with the District to craft and execute the optimal financing plan and to provide the District with the full breadth of our financial products, services and capital to achieve that objective. We would like to highlight the following credentials from our proposal for the District: The Top Underwriting Firm—As you know,the municipal bond underwriting field is extremely competitive. Citigroup is not only the leading municipal bond underwriter in the nation and in California, we are also the #1 ranked senior manager of negotiated California water and wastewater utility bonds, senior managing over $3.58 billion in California alone since 2003. Over that period, Citigroup has brought a new water bond issue to market,on average,once every three weeks,with an average transaction size of$60 million. ✓ Commitment and Experience of Senior Investment Banking Team—Citigroup has designated a senior-level team of investment bankers to serve the District. Dave Houston, a Managing Director and Manager of the Firm's California Water/Wastewater Group, will oversee the firm's engagement on the upcoming financing. In addition to Dave, Cameron Parks, a Vice President in Los Angeles, will also provide day-to-day banking service to the District. Lauretta Wild,an Analyst in Los Angeles will assist Dave and Cameron. ✓ Credit Strategy Specialists — The team consists of professionals who are experienced in working with California water utilities to present credit stories to secure the highest possible ratings and lowest possible insurance premiums. The team has worked with clients to receive upgrades for El Dorado Irrigation District, East Bay Municipal Utility District, Irvine Ranch Water District, Central Basin Municipal Water District, West Basin Municipal Water District, Rancho California Water District and the Orange County Water District. Over the past few years, credit spreads have narrowed, and Citigroup has worked with California water utilities to obtain bond insurance bids at historically attractive levels. ✓ Ability to Provide Issuers with the Lowest Cost of Capital — Our ability to provide the District with the lowest borrowing cost for public offerings is evidenced by our experience with competitive sales for California water utilities, where the sole determinant of the underwriter is the firm that provides the lowest borrowing cost. Out of the 63 competitively sold water transactions in California from January 1, 2003 to January 1, 2006,Citigroup senior managed 18 transactions, which is 8 more than our nearest competitor, for a total par amount of$627.1 million. Cn I,W[n CORPOR ATL AND NA LSeMEN I L3AVK1Nc; .,912 STONENFFR('OURT,S c R .W:NTO.CA 95921 P 0NF(91 )4KS-47,50 FAX:016)41iR-4799 444 So Tt(Fix, t T STREET,Z "FLOOR.U)o, ct_t: .CA 9047t P(TONE: 1,11 3)486 71 0 FAx:(213)486-3918 Ms. Chapman Truckee Donner Public Utility District August 7, 2006 Page 2 We are excited about the opportunity to work with the District as Senior Manager and believe that you will find that Citigroup is uniquely qualified to provide the highest level of underwriting services. We appreciate your consideration and look forward to the opportunity of working with the Truckee Donner Public Utility District. If you have any questions,please do not hesitate to either one of us. Sincerely, David Houston Cameron Parks Managing Director Vice President (916)488-4750 (213)486-7130 C I TICRCl'C.(IftP01 rt\NL)IN Vf SIN4LN i BANKING 3912 Sr Nr-ti ri:rt t i,ur?r.S u i r- tt?.CA 95£2i PHtirvt("tF i 4 -4' t)F :;91 t>1188-47}9 444 8� r€3 Ft.o��r<Sre�r:r ?. "FsnGR,LosAu�� e,,Ca 91�071 PHONP 121,)496-"130 Fax t213j 486-8918 � T8kUC8QEDCD0NNE0iPUBLIC UTILITY DISTRICT August 7,2000 Proposal to Provide Underwriter Services TR0CK00DKNN0R PUBLIC UTILITY DISTRICT PROPOSAL TO PROVIDE UNDERWRITER SERVICES Submitted by CKTUGRO0P CORPORATE AND INVESTMENT BANKING August 7,2000 TABLE OF CONTENTS Refundingof Series lyg6COPo............................................................................................................................................... I FinancingPlan..........................................................................................................................................................................2 C 's Experience with Tax-Exempt California Revenue Bonds....................................................................................3 Cbignxgp`m Financing Team.....................................................................................................................................................4 ProposedGross ....,.,,....,............,................^^.^^-..^..-^..^^.'^..--'^-~------_.^^.-^^..^.,^.^..^,..^..^.^^^^^.,..^-^...--...--,-^~5 AdditionalInformation About C ......--..----.-------..--...,--...,................,..-'....--.-.---.,--,.,,--.....,.,.......7 Appendix: C `uCulifoodu Revenue Bonds Experience Binuc20O0 TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4,2006 Proposal to Provide Underwriter Services Page 1 1. Please comment on whether you believe the District should pursue a refunding of the Series 1996 COPS. The 1996 Refunding Certificates of Participation were issued to advance refunding the then outstanding Series 1991 Certificates of Participation. The Series 1996 Certificates of Participation were originally issued in the amount of $10,905,000 and are currently outstanding in the amount of$8,465,000. Of these bonds, $8,115,000 are callable beginning August 17,2006 at a price of 102%, since $350,000 will be amortized on November 15,2006. Below we have provided a comparison of the Series 1996 COPS coupons and the refunding replacement yields. As shown in the graph and table, the refunding yields are on average, 150 basis points below the Series 1996 coupons of the same year. Current Comparison of Series 1996 Coupons and Refunding Yields 6.00% - -- - - -- Coupons Fhed Rates 2007 5.05% 3.55% 5.50%° - 2008 5.15% 3.58% 2009 5.25% 3.60% 5.00010 2010 5.30% 3.62% 0 2011 5.35% 3.64% 0 4. 2012 5.40% 3.68% 2013 5.50% 3.74% 0 4. /o -- --- -- ---- 2014 5.50% 3.80% 2015 5.50% 3.85% ° -- - - -3.5 /0 2016 5.50% 3.90% 2017 5.40% 4.00% ' 0° 2018 5.40% 4.04% r- o° rn o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2019 5.40% 4.08% N N N N CAN CAN N N N N N N N 2020 5.40% 4.12% -Series 1996 Coupons Current Traditional Fixed Rates 2021 5.40% 4.16% Based on the savings results provided below and because the Series 1996 COPS are currently callable, we would recommend refunding all outstanding COPs. This would also enable the District to remove old legal covenants and implement more current credit provisions, a concept that will discussed more fully in question two. The savings results Summary of Refunding Results i include all associated borrowing costs and are adjusted for earnings Total Par Amount of Refunded COPS $8,115,000 from the prior debt service reserve fund. Average Coupon of Refunded COPS 5.41 As summarized in the chart to the left, the refunding of the $8.115 Total Par Amount of Refunding COPS $8,160,000 million of Series 1996 COPS generates approximately $250,045 in Average Life 8.75 years net present value savings, or 3.08% of the refunded bonds. To All-in TIC 4.50% ensure an "apples-to-apples" comparison of the refunded and Gross Cashflow Savings $330,833 refunding COPS, we have adjusted savings to account for the Average Annual Savings 22,056 allowable earnings and releases of the prior debt service reserve Net Present Value Savings 250,046 Net PV Savings as a%of Refunded COPS 3.08% fund. These earnings have been calculated at the estimated average coupon of the Series 1996 COPs, a reasonable proxy for the Assumes delivery date of 11/15/2006. arbitrage yield, or the maximum permitted investment rate, of the Assumes savings present valued to delivery date at 4.03%, Series. the arbitrage yield of the refunding COPS. Since the refunding of the 1996 COPS generates debt service savings, it reduces pressure on charges and fees or pro vides additional borrowing capacity for the 2006 COPS. Based on the adopted rate increases of 6% on January 1, 2007 and January 1, 2008, no additional rate increases are expected to be necessary to support the proposed transaction. Given the impacts on charges and fees, the District may wish to consider whether the COPS should be issued with level debt service payments for the 2006 COPS, or with new money debt service wrapped around the amortization of the existing 1996 bonds to create more of an overall level debt service Debt Service Structure Comparison obligation. Assuming current market rates, wrapping M11 =.ti x ,w3 „. the proposed new money financing around the 1011- Total Debt Service $45,913,450 $50,203,150 44,289,700 District's existing debt produces a maximum aggregate Average Annual Debt Service 1,530,448 1,673,438 -142,990 annual debt service cost of $1.78 million, Maximum Annual Debt Service 2,035,500 1,778,600 256,900 PV of Total Debt Service 25,685,236 25,754,962 -69,726 approximately $256,900 less than the stand-alone level Debt service present valued to 11/]5/2006 at 5%. debt service scenario. Again, while charges and fees are projected to cover projected debt service,a wrapped Itigroup comoratr_Or d inn su pFfit ar*rq TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4,2006 Proposal to Provide Underwriter Services Page 2 structure would result in less pressure on the District's charges and fees and would enhance debt service coverage levels. The flat yield curve provides the District with the opportunity to extend the average life of the bonds by utilizing a wrapped debt service structure at a historically low incremental cost versus a level debt service structure. Ultimately, this structuring component must be coordinated with the District's modeling of charges and fees, and within tax law limitations regarding the useful life of the assets financed. Individual Level Debt Service Structure Aggregate Wrapped Debt Service Structure 2,000,000 -- -- — 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 _ 500,000 0 0 ❑Refunding of Series 1996 COPS o o ■Series 2006 COPS Used for Equipment Financing 0 Refunding of Series 1996 COPS ■Series 2006 Cops Used for Equipment Financin; ®Series 2006 COPS Less Equipment Financing ®Series 2006 COPS Less Equipment Financing 2. Do you foresee any obstacles in the District's financing plan? Please comment on the use of multiple revenue streams to support the transaction and whether you believe bond insurance will be available and beneficial to the District. Citigroup sees no insurmountable obstacles with the District's financing plan. In fact, given the approved water rate increases and customer surcharge, we think the District has the strong financial footing needed to issue the Series 2006 COPS. One area that may hinder the District's ability to secure strong ratings and competitive insurance bids is the District's current legal structure. The credit community may view the District's current 1.1Ox rate covenant and additional bonds test and current rate stabilization fund as weak. Weak legal provisions take away from the actual credit of the District and may prevent the rating agencies from placing the District in the strong category warranted by its financial situation. In addition to the rating agencies' perceptions, the legal provisions may negatively impact the insurance bids. Both results would cost the District money,either through higher interest rates or higher insurance premiums. To ensure the most cost-effective financing, we would propose working with the District, it's Financial Advisor and Bond Counsel to draft more modern and credit worthy legal documents that provide the credit community with additional comfort while retaining flexibility for the District. Some points that the new legals should contain include: ITEM RECOMMENDATION COMMENTS Rate Annual Net Revenues of 1.25x debt service on senior debt. 1.15x debt is the"floor";rating agencies or insurers will likely Covenant be more comfortable with 1.25x level. Actual coverage should be budgeted at 1.40x to provide additional comfort. Reserves Adequate reserves for operating and maintenance,renewal Should equal at least 20%-25%of prior year's O&M expense. and replacement,and,possibly,rate stabilization. Renewal and replacement to be set at a fixed level. Additional Historical-1.25x coverage of debt over any 12 consecutive Historical should be easily achieved CIP is substantial so some Bonds Test of the 29 months prior to issuance of additional bonds;and form of projected test will also be necessary. Projected-Net Revenues(with increased revenues) 1.25x Tests using projected revenues which include rate increases including additional debt. are less strong unless rate increases have been adopted and are applied to historical volumes. Variable Liberal variable rate provisions need to be incorporated to Allows the District to match assets and liabilities,implement a Rate Debt allow maximum flexibility. short-term cash flow borrowing program, as well as take Debt Service should be calculated at The Bond Buyer advantage of lower cost variable rates and any changes in the Revenue Bond Index,or to the extent that variable rate debt yield curve. is outstanding at the average rate over the preceding 12 months �** p� atIt�C`oup corgi orzite and TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4, 2006 Proposal to Provide Underwriter Services Page 3 Reserve Maximum allowed under tax law.Cure deficiencies within Industry standard Fund 24 months. Other Ability to enter into swaps, interest rate options, and Adequate management controls will insure appropriate use. Provisions investments contracts. Swaps may also impact the flow of funds. We believe that all available revenues should be used to support the financing. Furthermore, based on our experience, most water utility districts have multiple revenues streams supporting their financings. For example, El Dorado Irrigation District, the City of Folsom and Nevada Irrigation District have all combined water rates and connection fees in a net revenue pledge toward their Winning Insurance Bid outstanding bonds. However, we 35.0 do understand the unpredictability 30.0, of connection fees and to secure a stronger credit, we would 25.0 dI recommend budgeting for 1.40x 20.0 1 coverage to ensure 1.Ox coverage 0 of repeat revenues. M 15.0- Citigroup also believes that credit 10.0 enhancement should be utilized if 5.0- it is available, cost effective and 0 0 does not limit the District's Carpinteria El Dorado Nevada Folsom Pubic Chino Basin Marina Coast Rancho financial flexibility. In general, the Valley Water Irrigation Irrigation Financing Regional Water District, California Water insurers will rely on the same District,Series District,Series District,Series Authority,Series Financing Series 2006 District,Series 2006A 2004A 2005 2005A Authority,Series 2005 criteria as the rating agencies. They 2005 will also require investment grade ratings or indications from the rating agencies as well. A graphical summary of some of the bond issuance bids that Citigroup has received for our recent senior managed water transactions is shown in the table. We believe that Citigroup is uniquely qualified to work with the District and its financing team to draft more modern legal documents. Our rating and Credit Strategy ror the District NOUN Formal rating presentations either at the District or in San Francisco Meetings either at the District or in San Francisco or conference calls with bond insurers V Detail ongoing resource management plans that ensure future supply and maintain water costs over time j Communicate management's proactive planning efforts(both financial and water supply) Be prepared to explain how selected financing strategies meet District objectives insurance strategy for the District,would incorporate the following elements: Below we have provided two case studies, which outline our experience working with issuers to structure more credit worthy legal documents. El Dorado Irrieation District Citigroup has served the El Dorado Irrigation District (EID) in various capacities since 2003. Over the past four years, Citigroup has served EID on various transactions as senior manager and broker-dealer on approximately $255 million in general obligation and revenue bonds. In December 2002, EID issued $74,025,000 of Revenue Certificates of Participation ("COPS"), Series 2003A. Citigroup served as underwriter and broker dealer for the $91,800,000 Revenue Certificates of Participation, Series 2003B. The 2003A and 2003B COPS were issued to provide funds for approximately $163 million to acquire facilities for the Water System and Wastewater System. Additionally, the 2003A&B COPs were issued to prepay a loan from the United States Department of Commerce Economic Development Administration and to refund certain maturities of EID's 1996 COPS and 1999 COPS to eliminate pressure on rates and charges based on the financing of the 2003 projects. A few weeks after the 2003 COP transactions, in order to provide separation of the transactions for tax purposes, Citigroup underwrote $6 million of general obligation bonds for EID. The general obligation bonds provided funds for EID to atigroupAlk a orLiorate and TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4, 2006 Proposal to Provide Underwriter Services Page 4 enhance its water supply by acquiring the Sly Park Unit of the Central Valley Project, by discharging the Sly Park Bureau Contract with the United States Department of the Interior,Bureau of Reclamation(the"USBR"). In July 2004, EID issued $8,275,000 of Revenue Certificates of Participation ("COPs"), Series 2004B to refund the outstanding non-advance refundable 1996 COPS. Since the refunded COPs were non-advance refundable, and the transaction was executed more than 90 days before the call date of the 1996 COPs (February 15, 2006), the 2004A COPs were issued as taxable securities with a fixed interest rate through the call date. On the call date, the 2004A COPs converted to tax-exempt securities as weekly auction rate securities. The transaction was originally projected to provide EID with present value savings of approximately 7% of the bonds refunded. In September 2005, EID issued $75,445,000 of Revenue Certificates of Participation("COPs"), Series 2004A to refund the outstanding advance refundable 1996 COPs and 1999 COPS. The refunding provided EID with present value savings of approximately 4%of the bonds refunded. With the delivery of the 2004A COPS, EID had refunded all transactions that were outstanding under prior legal documents. Those legal documents provided investors with inadequate security relative to more modern legal covenants. The revised legal covenants, which were introduced in the 2003 transactions and which became the governing covenants with the delivery of the 2004 transactions, provided investors with substantially greater security while maintaining EID's financial flexibility. In 1999, EID issued bonds with ratings of Baal from Moody's and BBB+ from S&P and without insurance. The 2003 and 2004 transactions were issued with ratings of A3 from Moody's and A- from S&P and insurance premiums of approximately 30 basis points. Marina Coast Water District Our service to the Marina Coast Water District (MCWD) over the past 16 months demonstrates our willingness to work with and to develop a sound financing plan for a multi-year capital improvement program. Citigroup was hired by the Marina Coast Water District to assist in the development of a financing plan for its multi-year $175 million Capital Improvement Program. Citigroup worked with the District to develop a plan that would involve refunding three existing bank loans and issuing three separate series of new money financing in 2006, 2007 and 2009. The 2006 Bonds will refund the District's existing bank loans and provide funds to finance certain facilities within the District Water System and Wastewater System. Citigroup also worked extensively with the District on developing its credit story for S&P and insurance companies to review. MCWD currently serves approximately 4.50 square miles consisting of the City of Marina. In addition, the District serves the area formerly within the boundaries of the Fort Ord Army Base, which is approximately 45 square miles. Significant growth is projected to occur with the redevelopment of the Fort Ord Army Base in the next few years and will afford the District the ability to take on the proposed debt program. One of the strengths in the District's structure is the 1.40x coverage on net debt service while the Rate Covenant is at 1.25x. The District obtained an A- (Stable) rating from S&P. The rating is a result of a strong and growing service economy; above average wealth and income levels; sound system operations of the primarily residential-based water and sewer systems; below-average water and sewer rates; and sound financial results and strong liquidity. With the A- rating the District received four competitive bids for municipal bond insurance, which was ultimately awarded to MBIA. Citigroup has been committed to working step by step with the District on what has been their largest and first appearance into the capital markets. The Certificates are scheduled to pricing the week of August 7th. 3. Please describe your firm's experience in selling tax-exempt(.'alifornia revenue bonds. Top-Ranked Bond Underwriter in the Nation — Citigroup is the leading underwriter of municipal bonds in the United States, ranking as the number one senior manager for nine of the last ten years. We reclaimed the top negotiated underwriter ranking for 2005, senior managing over $52 billion, $15 billion more than our closest competitor. Furthermore, since the beginning of this year, Citigroup has underwritten $25.86 billion, maintaining the number one senior manager position. Within the Public Finance Department, Citigroup utilizes a "matrix" organizational structure that integrates industry and specialty groups with our regional offices. This structure allows Citigroup to combine resources from the regions, which have extensive knowledge of local financing issues, with industry specialists from New York. This organizational structure emphasizes both expertise in specialized financings as well as a local awareness of the needs and challenges of our clients in each region of the country. Our regional approach to municipal investment banking allows Citigroup to provide the service of a regional firm and the capital,underwriting, and marketing strength of a Wall Street giant. 1b roupJ ror orate,,irid (;����tme€�t b�r•E�ir;� TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4,2006 Proposal to Provide Underwriter Services Page 5 Top-Ranked California Bond Underwriter — Citigroup is the leading senior underwriter of California debt. Furthermore, we have demonstrated a tremendous commitment to California tax-exempt issuers, senior managing over $14.46 billion since 2005 and holding a 17%market share. Our success in California is attributable to our strong presence in the State. In total, Citigroup's municipal securities division has 27 public finance bankers and 16 salespersons and traders in California, with offices in San Francisco, Sacramento and Los Angeles. Citigroup is the only major Wall Street firm that maintains a full-service municipal sales trading and underwriting desk in California and is the only Wall Street firm with a nationwide municipal underwriting, trading and sales operation managed from California. Moreover, California Tax-Erempt Negotiated Resenue Bonds Since 2000 Citigroup maintains a strong retail sales presence in (s N111lions> California with 1,579 financial consultants staffed in 57 25,000 offices throughout the State. 20,000 — Revenue Bond Experience — As illustrated in the table to the right, Citigroup is the number one underwriter of ls,000 California tax-exempt revenue bonds sold on a 10,000 negotiated basis. Since 2000, Citigroup has served as book running senior-manager on 255 California tax- 5,000 — exempt negotiated revenue bond transactions aggregating approximately $22.08 billion in par. This o -r- - -T year alone we have secured a market share of Citigroup J P Morgan UBS Lehman Bear Stearns Morgan approximately 26% by senior-managing 20 transactions, Brothers Stanley which aggregated to a total par amount of over $3.64 billion, almost three times our closet competitor. In the Appendix we have included a listing of our California tax-exempt negotiated revenue bond experience since 2000. 4. Please provide a list of the individuals who will be assigned to work with the District. Describe the role of each individual and include the telephone and facsimile number of each member of the primary banking team. Include a brief resume of each individual's education,training and experience. David Houston will lead Citigroup's day-to-day banking team and has overall responsibility for Citigroup's relationship with the District. David is responsible for the firm's water and wastewater financing practice in California and nationally and will be available to attend official meetings with TDPUD when requested. Cameron Parks, a Vice President in Los Angeles will provide banking support, and Lauretta Wild, an Analyst in Los Angeles, will provide analytical and documentation support. All members of our team are available to the District at any time. Brad Thiel, an underwriter and day-to-day participant in the California market, will be responsible for pricing the District's bonds. The resumes and contact information of key members of the proposed banking team are provided below. DAVID HOUSTON,Managing Director Water and Sewer Finance Expert 3912 Stonesifer Court Telephone(916)4884750 Sacramento,CA 95821 Fax(916)488-4799 Mr. Houston manages the firm's water and wastewater finance efforts. Prior to joining Citigroup in 1989, Mr. Houston had 15 years of management experience with local and federal agencies. During his tenure with local agencies, his experiences ranged from developing regional plans for air and water quality to the design, financing and construction of facilities for water and wastewater, flood control and general government infrastructure. As Regional Director of the Mid- Pacific Region of the U.S. Bureau of Reclamation and as Deputy Assistant Secretary of the U.S.Department of Interior,he had hands-on management responsibility for some of the largest and most geographically diverse water and power projects in the country. Since joining Citigroup,Mr. Houston has senior managed water and wastewater financings totaling in excess of$25 billion including fixed rate, variable rate, commercial paper, long and short term issues and has managed complex transactions with swaps, derivatives and multiple parties. His finance efforts include managing transactions for numerous agencies including as examples, the Metropolitan Water District of Southern California, East Bay Municipal Utility District, the Central Coast Water Authority, West Basin Municipal Water District, Central Basin Municipal Water District, the West and Central Basin Finance Authority, Orange County Water District, Municipal Water District of Orange County, Three Valleys MWD, Rancho California Water District, the Honolulu Board of Water Supply, the San Antonio Water Supply ab9rouPA c,orporatp and i wF&stmenii t)a€'e in TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4,2006 Proposal to Provide Underwriter Services Page 6 System, City of Houston, Tampa Bay Water, District of Columbia Water and Sewer Authority, McCarran International Airport, San Francisco International Airport, Las Vegas Monorail and many others. Mr. Houston graduated from Utah State University with a B.S. in pre-law and M.S. in political science and has completed post-graduate work in engineering and chemistry at the University of Nevada,Reno. He is a registered Municipal Securities Principal of the MSRB Series 52 and 53)and a Registered Representative with the National Association of Securities Dealers(Series 63). CAMERON PARKS,Vice President Banking Support 444 South Flower Street,27th Floor Telephone(213)486-7130 Los Angeles,CA 90071 Fax(213)486-8918 Mr. Parks joined Citigroup following a number of years at the nation's leading financial advisory firm where he worked in the firm's utility and airport practices on the West Coast. Cameron works almost exclusively with California utility clients on a wide variety of transactions and products including swaps, refinancings, prepayments, debt restructurings, asset/liability management, new project financings, and merger and acquisition engagements. He has served as senior manager for over $7 billion of debt issuance for public entities. Public power clients he has worked with include: Metropolitan Water District of Southern California, East Bay Municipal Utility District, Orange County Water District, Inland Empire Utilities Agency, Central Basin Municipal Water District, Irvine Ranch Water District, Westlands Water District, West Basin Municipal Water District, Santa Clara Valley Water District, El Dorado Irrigation District, City of Roseville, City of Lodi, NCPA, Redding Electric Utility, SCPPA, City of Anaheim, among others. Additionally, he is serving currently on transactions for Santa Clara Valley Water District, Central Coast Water Authority, and West Basin Municipal Water District, among others. He is a Registered Representative with the National Association of Securities Dealers(Series 52 and 63). LAURETTA WILD,Analyst Quantitative and Document Support 444 South Flower Street,27th Floor Telephone(213)486-7138 Los Angeles,CA 90071 Fax(213)486-8918 Lauretta joined Citigroup's Los Angeles Public Finance Department in July 2004 after graduating magna cum laude from Occidental College with a Bachelor of Arts degree in Economics for Business Management. She has experience working on senior-managed transactions for a number of California clients, including the Orange County Water District, Irvine Ranch Water District, Metropolitan Water District of Southern California, West and Central Municipal Water District, Yosemite Community College District, San Diego Community College District, and most recently Carpinteria Valley Water District. Lauretta is a Registered Representative with the NASD(Series 52 and 63). BRAD THIEL,Director Underwriting 444 South Flower Street,36th Floor Telephone(213)486-8817 Los Angeles,CA 90071 Fax(213)486-8918 Brad has 20 years of experience trading and underwriting municipal securities in California. He joined Citigroup from Lehman Brothers, where he managed trading and underwriting efforts in the Western Region, and in the course of his career has participated in transactions of all sizes for every major California issuer. Currently,Brad manages Wall Street's largest municipal trading and underwriting desk in California, which on average trades between $300-$350 million California tax-exempt bonds on a weekly basis. Brad graduated from the University of California, Berkeley with a BA in Comparative Literature. Brad holds a Series 53 License and is a Member and former President of the Los Angeles Municipal Bond Club and currently serving on the Board of the California PSA. 5. Please provide a fee quote that includes all components of the gross spread. Please indicate what portions of the quote may be considered fixed. Please assume that the Financial Advisor has developed a financial pro-forma itigr ups mik rorpor,ate and TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4, 2006 Proposal to Provide Underwriter Services Page 7 and will take the lead in preparing the District's rating presentation. In estimating underwriter's counsel expenses, please note that Stadling Yocca will draft the preliminary and final official statements. Please indicate which firm you would consider using for underwriters' counsel. The table below provides a detailed breakdown of our fee proposal. Estimated ParArnount of $27,000,000 $111000 Average Takedown 4.0880 $110,387.50 Management Fee 1.0000 27,000.00 Expected Expenses Underwriter's Counsel 0.5556 15,000.00 Dalcomp 0.0625 1,687.50 Day Loan 0.0300 810.00 PSA/Cal PSA 0.0450 1,215.00 CDIAC 0.1111 3,000.00 CUSIP 0.0148 400.00 Travel/Miscellaneous 0.0926 2,500.00 �twmk"Inmfl VR egg,,, ' NU Ultimately, we do not want our fee proposal to stand in the way of Citigroup serving as the District's investment banker and would be willing to work with the District to arrive at a mutually acceptable and fair level of compensation for work performed. As such, only the Dalcomp, Day Loan,PSA/Cal PSA, CDIAC and CUSIP quotes should be considered fixed. Please feel free to contact us if any aspect of our fee proposal is of concern to you or requires further clarification. We would recommend engaging Brad Patterson from Ballard Spahr Andrews & Ingersoll to serve as Underwriter's Counsel. However, we would like to emphasize that we are eager to work with the District and as the largest underwriting firm in the nation we have worked with most law firms in the municipal industry. We would be pleased to discuss with the District a potential underwriter's counsel acceptable to all parties. 6. Why-should TDPUD select your firm to senior manage the proposed transaction? As the largest financial institution in the world and the leading senior manager of municipal bonds, Citigroup has the resources and experience to secure the most cost-effective financing for the District. As discussed in question two,we also have the credit expertise need to help the District and its financing team structure modern, credit worthy legal documents. Below we have provided an overview of our California water utility experience. Over the last ten years, Citigroup has maintained a dominant presence in the California water utility market, underwriting $6.3 billion bonds. Since 2003, Citigroup has ranked as California's leading water utility banker, acting as senior managing underwriter on 61 bond offerings aggregating approximately $3.58 billion. In 2005 alone, we senior managed 16 water utility transactions and with a total par amount of$1.3 billion, almost three times our closest competitor. The graph provided on the next page illustrates our leadership in the California water utility market. When counting by number of transactions or by total par amount underwritten, Citigroup has senior managed more water bonds than any other firm. Furthermore, over the last three years, on a new issuance basis, Citigroup has been in the market, on average, every three weeks with a transaction of$60 million. In addition to providing us with a vast amount of experience, this consistent presence also enables us to definitively state that we know the water utility market better than any other firm. abgrQUp (orporate and [r,nnsbnent bankir: TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 4,2006 Proposal to Provide Underwriter Services Page 8 California Water Utility Underwriter Ranking by Volume and Number of Transactions Since 2003 4,000 - -- —- - Citigroup 3,500 3,000-___. . -- — ----. .__.--- - - - 2,500 UBS Merrill Lynch 2,000 `m a_ m — - - ----- -— Morgan Stanley Bear Stearns '?1 1,000 -- —.-_- ------------- ---- _. Ro sa osa 9 Lehman Brothers de Stone&Youngberg 500 _ - r9 Goldman Sachs ..:BankAmerica 4' Piper Jaffrary Henderson Capital Partners 0 0 10 20 30 40 50 60 Number of Transactions Includes only firms with at least$500 million par amount or firths with less than$500 million par but who have executed 10 or more transactions. Includes competitive and negotiated transactions.Full credit to lead manager. In addition to knowing the water utility sector of the municipal market better than any other firm, Citigroup also provides California water issuers with the lowest borrowing cost. This is evidenced by our experience with competitive sales where the sole determinant of the underwriter is the firm who 20 Competitive California Water Utility Trans cations Since 2003 provides the issuer with the lowest borrowing cost. Of (Number of Deals) the 63 competitively sold water transactions in 15 California since January 1, 2003, Citigroup senior managed 18 transactions for a total par amount of to $627.1 million. As shown in the chart on the prior page, only one firm comes close to Citigroup's 5 experience, over this period, in terms of the number of occasions in which it provided water issuers in California with the lowest borrowing cost. We would Citigroup Morgan Merrill Banc of stone& Fidelity Goldman, Lehman also note that those firms with substantial retail Stanley Lynch& America Youngberg Capital JP Morgan, Brothers, presences (Citigroup, Morgan Stanley and Merrill Co Securities Markets Morgan Bear Lynch) executed 34 or the total 63 water utility LLC Keegan, Stearns, Southwest Wachovia transactions that were sold competitively. Given the Securities securities, strength of their retail distribution networks, these firms Sterne Agee &Le cb, demonstrated their ability to take on risk and underwrite RBC,UBS, more bond issues. Wells Fargo, Hutchinson Shockey Erlcy,TGH atit roupl « 1-afre and investtne nt bar.kirl Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. Prior to entering into any transaction contemplated hereby (a "Transaction") you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks), as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard,by accepting this presentation,you acknowledge that(a)we are not in the business of providing(and you are not relying on us for)legal, tax or accounting advice, (b)there may be legal, tax or accounting risks associated with any Transaction,(c)you should receive(and rely on)separate and qualified legal,tax and accounting advice and(d)you should apprise senior management in your organization as to such legal,tax and accounting advice(and any risks associated with any Transaction)and our disclaimer as to these matters. We are required to obtain,verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents,or other forms of identification,to verify information provided. Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized,and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly,we may have a position in any such instrument at any time. We maintain a policy of strict compliance to the anti-tying provisions of the Bank Holding Company Act of 1956, as amended, and the regulations issued by the Federal Reserve Board implementing the anti-tying rules(collectively,the "Anti-tying Rules"). Moreover our credit policies provide that credit must be underwritten in a safe and sound manner and be consistent with Section 23B of the Federal Reserve Act and the requirements of federal law. Consistent with these requirements and our Anti-tying Policy: You will not be required to accept any product or service offered by Citibank or any Citigroup affiliate as a condition to the extension of commercial loans or other products or services to you by Citibank or any of its subsidiaries,unless such a condition is permitted under an exception to the Anti-tying Rules. We will not vary the price or other terms of any Citibank product or service based on the condition that you purchase any particular product or service from Citibank or any Citigroup affiliate,unless we are authorized to do so under an exception to the Anti-tying Rules. We will not require you to provide property or services to Citibank or any affiliate of Citibank as a condition to the extension of a commercial loan to you by Citibank or any Citibank subsidiary,unless such a requirement is reasonably required to protect the safety and soundness of the loan. We will not require you to refrain from doing business with a competitor of Citigroup or any of its affiliates as a condition to receiving a commercial loan from Citibank or any of its subsidiaries,unless the requirement is reasonably designed to ensure the soundness of the loan. Although this material may contain publicly available information about Smith Barney equity research or Citigroup corporate bond research, Citigroup policies prohibit analysts from participating in any efforts to solicit investment banking business; accordingly, research analysts may not have any communications with companies for the purpose of soliciting investment banking business.Moreover,Citigroup policy(i)prohibits research analysts from participating in road show meetings;(ii)prohibits investment banking personnel from having any input into company-specific research coverage decisions and from directing research analysts to engage in marketing or selling efforts to investors with respect to an investment banking transaction;(iii)prohibits employees from offering,directly or indirectly,a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation; and (iv) prohibits analysts from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest,as well as to reduce any appearance of conflicts of interest, Citigroup has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances. ©2004 Citigroup Global Markets Inc.Member SIPC.CITIGROUP and Umbrella Device are trademarks and service marks of Citicorp or its affiliates and are used and registered throughout the world. Appendix California Tax-Exempt Negotiated Revenue Bond Financings Since 2000($Millions) Sale Date Issuer Par Amount Issue Description 3/20/2000 Chino Basin Regional Fin Auth $45.91 Commercial Paper Certificates 3/28/2000 Alameda-California 9.55 Telcommunications Elec Rev Bonds 4/27/2000 Riverside Co Asset Leasing Corp 17.95 Leasehold Revenue Bonds 4/27/2000 Riverside Co Asset Leasing Corp 76.30 Leasehold Revenue Bonds 5/17/2000 Carpenteria Valley Water Dt 9.02 Revenue COPS 6/14/2000 California St Public Works Board 8.79 Lease Revenue Bonds 6/14/2000 California St Public Works Board 29.80 Lease Revenue Bonds 6/27/2000 Riverside Co Transportation Comm 35.83 Sales Tax Revenue Bonds 6/27/2000 Santa Rosa City-California 0.88 Multi-Family Housing Rev Bonds 6/27/2000 Santa Rosa City-California 1.82 Multi-Family Housing Rev Bonds 7/14/2000 Huntington Beach Public Fin Auth 18.31 Lease Revenue Bonds 9/14/2000 Central California Jt Pwr Hlth Au 129.28 Certificates of Participation 9/19/2000 So California Metro Water Dt 88.80 Water Revenue Bonds 9/19/2000 So California Metro Water Dt 88.80 Water Revenue Bonds 10/4/2000 Fresno Joint Power Fin Auth 42.04 Refunding Lease Revenue Bonds 10/11/2000 Irvine Assessment Dt#93-14 72.40 Ltd Oblig Improvement Bonds 11/21/2000 Kings River Conservation Dt 22.14 Revenue Bonds 1/12/2001 California Housing Finance Agcy 7.00 Home Mortgage Revenue Bonds 2/14/2001 Riverside Co Public Fin Authority 11.29 Reassessment Revenue Bonds 2/14/2001 Riverside Co Public Fin Authority 13.55 Reassessment Revenue Bonds 4/4/2001 Riverside Redevelopment Agency 90.03 Tax Allocation Bonds 4/11/2001 Chino Basin Regional Fin Auth 56.97 Var Rte Dem Desalter Rev Bonds 4/18/2001 Long Beach Bond Finance Auth 129.52 Lease Revenue Refunding Bonds 5/2/2001 Richmond Jt Pwrs Financing Auth 29.21 Lease Revenue Bonds 5/24/2001 Bay Area Toll Authority 300.00 Var Rte Demand Bonds 6/4/2001 Petaluma Comm Dev Commission 4.03 Refunding Tax Allocation Bonds 6/7/2001 California State University 10.35 Auxiliary Organiz Ref Rev Bonds 6/7/2001 Torrance City-California 65.00 Hospital Revenue Bonds 6/13/2001 CSUCI Financing Auth 49.46 Revenue Bonds 6/29/2001 Los Angeles Harbor Dept 36.18 Refunding Revenue Bonds 6/29/2001 Los Angeles Harbor Dept 63.52 Refunding Revenue Bonds 7/2/2001 Chela Financial Inc 42.50 Student Loan Revenue Bonds 7/25/2001 Central California Jt Pwr Hlth Au 68.00 Certificates of Participation 7/26/2001 Los Angeles Comm College Dt 27.79 Certificates of Participation 8/2/2001 Riverside City-California 20.00 Water Revenue Bonds 8/2/2001 Riverside City-California 47.22 Electric Rev Bonds 8/16/2001 No California Tobacco Sec Auth 199.62 Tobacco Settlement Bonds 8/22/2001 Huntington Beach City-California 31.36 Lease Revenue Bonds 10/2/2001 Alameda-Contra Costa Transit Dt 23.80 Refunding Certs of Partic 10/25/2001 Burbank City-California 54.75 Electric Revenue Bonds 10/30/2001 Redondo Beach Public Fin Auth 2.97 Refunding Rev Bonds 11/14/2001 Cotati Redevelopment Agency 6.96 Subordinate Tax Allocation Bonds 11/15/2001 California Statewide Comm Dev Au 75.00 Variable Rate Revenue Bonds 11/15/2001 California Statewide Comm Dev Au 75.00 Variable Rate Revenue Bonds 11/15/2001 California Statewide Comm Dev Au 125.00 Variable Rate Revenue Bonds 11/15/2001 Huntington Beach Public Fin Auth 31.10 Lease Revenue Bonds 11/30/2001 California Infrstr&Eco Dev Bank 6.93 Capital Certificates 11/30/2001 California Infrstr&Eco Dev Bank 197.62 Revenue Bonds 12/6/2001 San Francisco State University 35.31 Housing Revenue Bonds 12/12/2001 California Statewide Comm Dev Au 450.00 Revenue Bonds 12/12/2001 Northridge Water Dt 16.08 Certificates of Participation 12/12/2001 Oakland Joint Powers Fin Auth 5.80 Revenue Bonds 12/12/2001 Oakland Joint Powers Fin Auth 19.80 Revenue Bonds 12/20/2001 CSUCI Financing Auth 46.82 Rental Housing Revenue Bonds 1/16/2002 Lodi City-California 26.75 Certificates of Participation 1/22/2002 Lodi City-California 46.76 Electric Sys Rev Cert of Partic 1/31/2002 California State University 5.00 Revenue Bonds 1/31/2002 California State University 69.48 Revenue Bonds 2/6/2002 Oceanside Community Dev Comm 22.03 Tax Allocation Bonds 2/6/2002 Stockton-East Water Dt 21.64 Ref Certificates of Participation 2/21/2002 Anaheim Public Finance Auth 178.71 Revenue Bonds 2/22/2002 Stockton-East Water Dt 3.51 Refunding Rev Certs of Partic 2/26/2002 Chino Basin Desalter Auth 100.00 Var Rte Demand Revenue Bonds 3/5/2002 East Bay MUD 120.93 Water Sys Subor Rev Ref Bonds 3/21/2002 California Statewide Comm Dev Au 2.50 Student Housing Revenue Bonds 3/21/2002 California Statewide Comm Dev Au 22.56 Student Housing Revenue Bonds 4/3/2002 Stockton-East Water Dt 17.66 Certificates of Participation 4/4/2002 Redding City-California 96.63 Electric Sys Rev Certs of Partic 4/16/2002 Northern California Power Agency 43.31 Hydro Electric Refunding Bonds 5/9/2002 Ridgecrest Redevelopment Agy 4.48 Tax Allocation Refunding Bonds 5/17/2002 California Statewide Comm Dev Au 105.00 Insured Revenue Bonds 5/22/2002 Marin Co Open Space Dt 8.91 Revenue Bonds 6/7/2002 Santa Clara Co Brd of Education 15.90 Refunding Certs of Partic 6/17/2002 Assoc of Bay Area Govt(ABAG) 71.50 Revenue Bonds 6/20/2002 Burbank City-California 25.00 Water&Power Electric Rev Bonds 7/9/2002 Los Angeles Comm College Dt 43.65 Var Rte Ref Certs of Part 7/17/2002 Chino Basin Regional Fin Auth 59.00 Var Rte Dem Revenue Bonds 7/17/2002 Westlands Water Dt 100.00 Certificates of Participation 7/19/2002 California Housing Finance Agcy 14.82 Home Mortgage Rev Bonds 7/23/2002 Contra Costa Co Public Fin Auth 25.44 Lease Revenue Bonds 7/24/2002 Port of Oakland-California 218.47 Revenue Bonds 8/19/2002 Los Angeles Dept of Wtr&Power 138.50 Power Sys Var Rte Dem Rev Bonds 8/21/2002 San Bernardino Co(Rialto)USD 12.04 Ref Certificates of Participation 9/27/2002 Calaveras Unified SD 1.66 Certificates of Participation 10/16/2002 San Diego Metro Transit Dev Bd 17.85 Certificates of Participation 10/22/2002 San Francisco Redev Agency 23.44 Var Rte Revenue Bonds 10/23/2002 Irvine Ranch Water Dt 35.00 Certificates of Participation 10/23/2002 Kern Co(Antelope Vlly)UHSD 31.00 Certificates of Participation 10/23/2002 Oceanside City-California 25.19 Certificates of Participation 10/30/2002 Oceanside Comm Facs Dt#2001-1 9.92 Special Tax Bonds 11/5/2002 Wheatland Elementary SD 12.00 Certificates of Participation 11/14/2002 Lodi City-California 21.23 Electric Sys Rev Certs of Partic 12/13/2002 Riverside(Moreno Vlly)USD#88-1 20.81 Special Tax Revenue Bonds 12/17/2002 California Statewide Comm Dev Au 8.00 Revenue Bonds 12/17/2002 Nevada Irrigation Dt 15.18 Certificates of Participation 12/17/2002 Oceanside Comm Facs Dt#2001-1 12.27 Special Tax Bonds 1/9/2003 Orange Co Water Dt 145.06 Certificates of Participation 1/16/2003 Los Angeles Co Pub Works Fin Au 143.20 Refunding Revenue Bonds 1/29/2003 Riverside Co Asset Leasing Corp 56.14 Leasehold Revenue Bonds 2/6/2003 Bay Area Toll Authority 75.00 Toll Bridge Revenue Bonds 2/13/2003 Shasta Jt Powers Fin Authority 42.58 Revenue Bonds 2/14/2003 East Bay MUD 50.00 Wastewater Sys Sub Rev Ref Bonds 3/7/2003 California Infrstr&Eco Dev Bank 65.00 Revenue Bonds 3/12/2003 Northern California Trans Agency 95.80 Revenue Refunding Bonds 3/19/2003 Oceanside City-California 11.08 Certificates of Participation 3/20/2003 So California Public Power Auth 14.11 Lease Revenue Bonds 3/20/2003 So California Public Power Auth 299.98 Revenue Bonds 4/l/2003 Anaheim Public Finance Auth 60.42 Revenue Refunding Bonds 4/2/2003 Santa Ana-California 16.99 Certificates of Participation 5/14/2003 Santa Ana Community Redev Agency 55.09 Tax Allocation Bonds 5/15/2003 California Housing Finance Agcy 10.17 Home Mortgage Revenue Bonds 5/19/2003 Central Basin Municipal Water Dt 14.53 Certificates of Participation 5/20/2003 So California Public Power Auth 51.75 Transmission Proj Rev Bonds 5/21/2003 Clovis Public Financing Auth 44.33 Water Revenue Bonds 6/6/2003 Assoc of Bay Area Govt(ABAG) 109.65 Revenue Bonds 6/10/2003 Orange Co Water Dt 129.82 Adj Rte Rev Certs of Partic 6/10/2003 San Juan Water Dt 27.22 Certificates of Participation 6/12/2003 Riverside City-California 75.41 Electric Refunding Revenue Bonds 6/19/2003 East Bay MUD 115.73 Water Sys Subord Rev Ref Bonds 6/19/2003 Oceanside City-California 15.86 Certificates of Participation 6/26/2003 Oceanside Community Dev Comm 7.74 Refunding Tax Allocation Bonds 7/8/2003 Turlock Irrigation Dt 26.79 Certificates of Participation 7/8/2003 Turlock Irrigation Dt 30.24 Rev Ref&Cert of Participation 7/11/2003 Assoc of Bay Area Govt(ABAG) 30.00 Revenue Bonds 8/5/2003 California Statewide Comm Dev Au 106.60 Revenue Bonds 9/5/2003 So California Metro Water Dt 105.58 Water Revenue Bonds 9/25/2003 Golden State Tobacco Sec Corp 2,572.29 Tobacco Settlement Bonds 9/30/2003 Three Valleys Muni Water Dt 16.13 Ref Certificates of Participation 10/17/2003 West Basin Municipal Water Dt 156.09 Certificates of Participation 11/13/2003 San Mateo Jt Powers Fin Auth 133.55 Lease Revenue Bonds 11/14/2003 El Dorado Irrigation Dt 74.03 Certificates of Participation 11/14/2003 Santa Clara Valley Trans Auth 131.24 Measure A Sales Tax Rev Bonds 12/1/2003 West Basin Municipal Water Dt 137.50 Ad Rte Certs of Participation 12/3/2003 Santa Clara Co Financing Auth 20.03 Lease Revenue Bonds 12/3/2003 Santa Clara Co Financing Auth 21.35 Lease Revenue Bonds 12/3/2003 Tejon Ranch Public Facs Fin Auth 6.90 Special Tax Bonds 12/5/2003 So California Metro Water Dt 112.74 Water Revenue Refunding Bonds 12/9/2003 El Dorado Irrigation Dt 91.80 Certificates of Participation 12/9/2003 Riverside City-California 53.19 Certificates of Participation 12/17/2003 Folsom Public Finance Auth 7.43 Reassessment Revenue Bonds 1/7/2004 Santa Clara Valley Water Dt 32.97 Ref&Imp Certs of Participation 1/22/2004 Oceanside City CFD#2001-1 11.00 Special Tax Bonds 2/4/2004 Santa Ana Finance Authority 38.85 Lease Revenue Refunding Bonds 2/19/2004 Long Beach City-California 32.05 Harbor Revenue Refunding Bonds 2/25/2004 California Dept of Transport 614.85 Federal Hway Grant Antic Bonds 3/25/2004 California Statewide Comm Dev An 175.00 Revenue Bonds 3/29/2004 California Statewide Comm Dev Au 250.00 Revenue Bonds 3/29/2004 California Statewide Comm Dev Au 300.00 Revenue Bonds 3/31/2004 Walnut Energy Center Authority 142.79 Revenue Bonds 4/14/2004 Walnut Energy Center Authority 30.08 Revenue Bonds 4/15/2004 California Health Facs Fin Auth 100.00 Health Fac Revenue Bonds 4/19/2004 California Health Facs Fin Auth 205.23 Health Facility Revenue Bonds 4/20/2004 Regents of the Univ of California 256.17 Hospital Revenue Bonds 4/23/2004 California Housing Finance Agcy 20.90 Home Mortgage Revenue Bonds 5/6/2004 California 2,250.00 Economic Recovery Bonds 5/11/2004 California Infrstr&Eco Dev Bank 135.85 Insured Revenue Bonds 5/12/2004 California Health Facs Fin Auth 90.00 Health Facilitiy Revenue Bonds 5/12/2004 Redondo Beach Public Fin Auth 10.34 Revenue Bonds 5/20/2004 Riverside City-California 27.50 Electric Revenue Bonds 5/27/2004 California Statewide Comm Dev Au 118.58 Revenue Bonds 6/l/2004 Chino Basin Desalter Auth 110.50 Adj Rte Desalter Rev Ref Bonds 6/2/2004 Riverside City-California 82.50 Electric Revenue Bonds 6/8/2004 California 300.00 Economic Recovery Bonds 6/8/2004 Castaic Lake Water Agency 40.00 Certificates of Participation 6/9/2004 Palm Desert Financing Auth 24.95 Tax Allocation Refunding Bonds 6/10/2004 San Jose City-California 34.27 Airport Revenue Bonds 6/13/2004 Assoc of Bay Area Govt(ABAG) 66.00 Bart SFO Extension Ref Bonds 6/15/2004 West Basin Municipal Water Dt 22.88 Ref Rev Certs of Participation 6/16/2004 Anaheim Public Finance Auth 131.27 Distribution Sys Rev Bonds 7/20/2004 San Luis Water Dt 2.99 Rev Certificates of Participation 7/22/2004 Cachuma Operation Maintenance 4.48 Revenue Refunding Bonds 7/27/2004 Alameda Co Jt Powers Auth 28.28 Lease Revenue Bonds 7/28/2004 El Dorado Irrigation Dt 8.28 Adj Rte Rev Certs of Part 8/4/2004 Alameda Co Jt Powers Auth 108.70 Lease Revenue Bonds 8/4/2004 CSUCI Financing Auth 44.50 Revenue Bonds 8/4/2004 CSUCI Financing Auth 50.74 Revenue Bonds 8/17/2004 El Dorado Irrigation Dt 75.45 Ref Rev Cert of Participation 9/8/2004 Oceanside Community Dev Comm 13.51 Refunding Tax Allocation Bonds 9/29/2004 Kings River Conservation Dt 52.78 Rev Certificates of Participation 10/4/2004 Bay Area Toll Authority 150.00 Toll Bridge Revenue Bonds 10/14/2004 Desert Hot Springs-California 3.06 Certificates of Participation 10/14/2004 Desert Hot Springs-California 9.73 Judgment Obligation Bonds 10/27/2004 Oceanside City CFD#2001-1 12.74 Special Tax Bonds 11/2/2004 California Statewide Comm Dev Au 57.63 Revenue Bonds 11/4/2004 Sacramento Co Sanit Dt Fin Auth 50.00 Subor Lien Var Rte Rev Bonds 11/4/2004 San Mateo Flood Control Dt 10.38 Certificates of Participation 11/30/2004 Tustin City CFD#04-1 11.42 Special Tax Bonds 12/8/2004 Oceanside City CFD#2001-1 16.09 Special Tax Bonds 12/14/2004 Riverside Co Public Fin Authority 102.79 Tax Allocation Revenue Bonds 12/14/2004 Riverside Co Redevelopment Agency 38.23 Tax Allocation Housing Bonds 12/15/2004 Sacramento Suburban Water Dt 41.28 Adj Rte Certs of Participation 1/12/2005 Orange Co Water Dt 76.77 Certificates of Participation 2/8/2005 Orange Co Water Dt 95.18 Certificates of Participation 2/8/2005 Westlands Water Dt 58.20 Certificates of Participation 2/11/2005 Folsom Public Finance Auth 14.29 Water Revenue Bonds 2/14/2005 California Statewide Comm Dev Au 130.00 Revenue Bonds 2/14/2005 California Statewide Comm Dev Au 364.66 Revenue Bonds 2/17/2005 Sonoma St Univ Academic Found 12.65 Auxiliary Org Revenue Notes 2/23/2005 California Infrstr&Eco Dev Bank 115.00 Revenue Bonds 2/24/2005 Kings Co Public Fin Authority 11.47 Lease Revenue Bonds 4/5/2005 Riverside Redevelopment Agency 18.25 Tax Allocation Housing Ref Bonds 4/13/2005 Riverside Co-California 22.61 Certificates of Participation 4/13/2005 Riverside Co-California 51.67 Certificates of Participation 4/13/2005 Sacramento Suburban Water Dt 79.03 Certificates of Participation 4/21/2005 Oceanside City-California 20.17 Ref Certificates of Participation 4/26/2005 Chino Basin Regional Fin Auth 24.74 Revenue Bonds 5/5/2005 East Bay MUD 300.00 Water Sys Sub Revenue Bonds 5/11/2005 Burbank-Glndl-Psdna Airport Auth 7.75 Airport Revenue Bonds 5/11/2005 Santa Clara Co Financing Auth 11.11 Lease Revenue Bonds 5/18/2005 Santa Clara Co Financing Auth 182.78 Lease Revenue Bonds 5/24/2005 California Health Facs Fin Auth 40.98 Weekly Var Rate Revenue Bonds 6/l/2005 East Bay MUD 70.00 Wstwtr Sys Subord Rev Ref Bonds 6/1/2005 East Bay MUD 325.00 Water Sys Subord Rev Ref Bonds 6/14/2005 San Jose City Redev Agcy 10.45 Housing Set-Aside Tax Alloc Bonds 6/17/2005 California Health Facs Fin Auth 249.03 Insured Revenue Bonds 6/28/2005 Nevada Irrigation Dt 8.73 Revenue COPS 7/6/2005 Santa Clara Valley Trans Auth 51.68 Sales Tax Revenue Refunding Bonds 7/14/2005 California Housing Finance Agcy 20.00 Home Mortgage Revenue Bonds 7/14/2005 So California Metro Water Dt 100.00 Water Revenue Bonds 7/19/2005 Los Angeles Comm Redev Agcy 98.92 Lease Revenue Bonds 7/21/2005 Los Angeles Co Metro Trans Auth 132.46 Capital Grant Receipts Rev Bonds 7/25/2005 Los Angeles Co Metro Trans Auth 66.23 Capital Grant Receipts Rev Bonds 8/1/2005 Rancho Calif Wtr Dt Fin Auth 22.78 Auction Rte Ref Revenue Bonds 8/2/2005 San Bernardino Co(Chino)USD 23.28 Ref Certificates of Participation 8/10/2005 San Fran Bay Area Rapid Trans Dt 352.10 Sales Tax Revenue Ref Bonds 8/17/2005 Riverside Co Public Fin Authority 144.08 Tax Allocation Revenue Bonds 8/23/2005 Newport Beach City-California 200.00 Auc Rate Sec Insured Rev Bonds 8/24/2005 Mt San Jacinto Winter Park Auth 11.41 Ref Certificates of Participation 8/25/2005 Madera Co-California 22.45 Certificates of Participation 9/12/2005 Westlands Water Dt 30.30 Certificates of Participation 9/30/2005 Los Angeles Harbor Dept 60.04 Refunding Revenue Bonds 10/4/2005 San Jose-Santa Clara Wtr Fin Au 27.13 Sewer Revenue Refunding Bonds 10/27/2005 Alameda-Contra Costa Sch Fin Au 22.66 Revenue Bonds 11/4/2005 San Diego Co Reg Transp Comm 100.00 Subor Sales Tax Rev CP Notes 11/8/2005 California Health Facs Fin Auth 31.73 Revenue Bonds 11/9/2005 California Health Facs Fin Auth 140.40 Health Facility Revenue Bonds 11/9/2005 California Health Facs Fin Auth 224.93 Insured Health Facility Rev Bonds 11/9/2005 Redding City-California 30.70 Electric Sys Revenue COPs 2/3/2006 California Co Tobacco Sec Agency 319.83 Tobacco Settle Asset-Backed Bonds 2/7/2006 Bay Area Toll Authority 175.00 Toll Bridge Revenue Bonds 2/17/2006 Santa Clara Co Financing Auth 53.95 Lease Revenue Bonds 3/23/2006 California Co Tobacco Sec Agency 42.15 Tob Settlement Assetbacked Bonds 4/4/2006 Bay Area Toll Authority 1,149.21 Toll Bridge Revenue Bonds 4/19/2006 South San Francisco Redev Agcy 70.68 Tax Allocation Revenue Bonds 5/24/2006 California Health Facs Fin Auth 200.00 Revenue Bonds 5/24/2006 California Statewide Comm Dev Au 700.00 Revenue Bonds 5/24/2006 Carpinteria Valley Water Dt 10.03 Ref Rev Certs of Participation 5/31/2006 California Statewide Comm Dev Au 9.96 Revenue Bonds 6/7/2006 California Health Facs Fin Auth 325.00 Revenue Bonds 6/7/2006 Gardena City-California 3.65 Certificates of Participation 6/9/2006 Cent Valley Sup Svs Jt Pwrs Agcy 23.61 Lease Revenue Bonds 6/14/2006 Riverside Co-California 34.68 Certificates of Participation 6/21/2006 Vernon Natural Gas Fin Auth 200.00 Revenue Bonds 6/26/2006 Vernon Natural Gas Fin Auth 230.85 Revenue Bonds 6/27/2006 Palm Desert Financing Auth 82.68 Tax Allocation Ref Rev Bonds 7/11/2006 So California Public Power Auth 37.73 Revenue Bonds 7/12/2006 California Statewide Comm Dev Au 23.83 Revenue Bonds 8/2/2006 Santa Clara Valley Trans Auth 428.38 Sales Tax Revenue Bonds 8/3/2006 California Statewide Comm Dev Au 125.00 Revenue Bonds 8/3/2006 Palm Desert City-California 10.00 Revenue Bonds Total $22,081.40 Prepared by Citigroup Corporate and Investment Banking Source:Thompson Financial Services Municipal Securities Group Request foggg9rg Proposal: Underwriting Services € xbi NO O` ONLEE � p P U B L I C U T I I_ F 7 It D I S T R I CT August 7, 2006 Investment Bank UBS Investment Bank is a business group of UBS AG UBS Securities LLC is a subsidiary of UBS AG UBS Securities LLC * UBS One California Street,Suite 2700 San Francisco,CA 94111 Municipal Securities Group John Costagliola,Managing Director Tel.+415-954-6898 Fax.+415-788-3271 john.costagliola@ubs.com www.ubs.com August 7, 2006 Ms. Mary Chapman Administration Services Manager Truckee Donner PUD 11570 Donner Pass Road Truckee, CA 96160 Dear Mary: On behalf of UBS, we are pleased to submit this response to Truckee Donner Public Utility District's Request for Proposals for Underwriting Services. While our proposal details UBS' qualifications, we would like to highlight the following points: • UBS is the #1 Underwriter in the nation and in California of water and wastewater financings since 2000; • UBS is able to minimize the District's borrowing costs by maximizing investor demand for its bonds; we achieve this by utilizing our exceptional California and national bond marketing capabilities, which generates market demand across all purchasing segments, in all market conditions; • UBS commits to provide the District the highest possible level of service, staffing this transaction with four experienced investment bankers, including Mark Adler who has worked as senior manager for the District's Mello Roos financings. UBS has the most banking resources of any public finance firm, small or large, in California. • UBS is eager to work with the District, as demonstrated by our highly competitive proposed fee. In addition, UBS excels at underwriting in all market environments, particularly challenging markets where we are willing to "step up to the plate" and inventory virtually an entire bond issue to achieve our client's financing objective. UBS appreciates the opportunity to continue our relationship with the District and pledges to commit all necessary resources to provide you with the best possible financing program at the lowest possible cost. Please feel free to call us with any questions or to clarify any points in our proposal. Thank you for considering UBS Investment Bank. Very truly yours, John Costagliola Tom Innis Managing Director Director TABLE OF CONTENTS Page Section 1:-----------------------------------------. I Section2:-----------------------------------------. 3 Section 3:-----------------------------------------. 4 Section 4:-----------------------------------------. 7 Section5:-----------------------------------------. 8 Section 6:-----------------------------------------. S TRUCKEE DONNER rue_�c u�lilrr BrsrRlct 1. Please comment on whether you believe the District should pursue a refunding of the Series 1996 COPS. There are two basic questions the District should consider when evaluating whether or not to refund the 1996 COP transaction: Does the District want to extinguish COP covenants that it may find to be too restrictive? Does the refunding save the District money on its annual debt service obligations net of expenses? For the first question, we evaluated the COPS legal covenants. After analyzing the existing legal structure we are hard pressed to change any of the covenants that the District currently operates under. The definition of revenues is quite broad and gives flexibility to both recurring revenues and one time revenues, i.e. standby charges. The rate covenant at 1.10 times annual debt service provides the District with operating flexibility and the additional bonds test gives the District flexibility to use an Independent Financial Consultant rather than having to rely solely on a CPA firm. The only change UBS would suggest is getting rid of the 1/6, 1/12 set asides of interest and principal to the Trustee. Most California water resource issuers do not have this traditional revenue bond covenant rather they accumulate the revenues over the year and deposit them to the trustee anywhere between one and five days prior to payment of debt service. To answer the second question, we first have to take into account tax law. Under current tax law, the Series 1996 COPS cannot be advance refunded since they were issued to advance refund the Series 1991 COPS and an advance refunding would exceed the post 1986 one-time advance refunding limit. However, with the current schedule of issuance for the new money in September 2006, the COPS could be refunded in conjunction with your new money financing and be within the 90 day window allowable by tax law to execute a current refunding. In today's market ' a stand-alone current refunding would produce Bond'Par Amount e Ref nd hig $472,887 in present value savings or $41,963 of True Interest Cost 4.36% average annual cashflow savings as shown In Amount of Bonds Refunded $8,115,000 the summary of statistics in the table on the Total Present Value Savings $472,887 right. These results certainly warrant % Savings of Refunded Bonds 5.82% recommending a refunding in conjunction with the issuance of your new money since blending the transactions should enable the District to capture more savings through economies of scale on costs and higher escrow yield. We further address the state of the current market and related thoughts about your proposed new money issue below. CURRENT MARKET 15.0 While the Federal Reserve has raised interest -Revers°eBondi°max rate seventeen times over the last two years, 13.0 R8I=6.06%as of 8l3/2006 the Municipal market still enjoys some of its lowest historical rates. Given these historically low rates (as shown by the chart on the right) and to help ensure maximum future financing flexibility, UBS recommends issuing 90 conventional callable fixed rate debt for the District's proposed financing. We further recommend a level 30-yr debt structure with a 10-yr par call. This structure brings with it the 50 greatest benefit and least amount of risk of any of the financing alternatives available to the District in the current market. There would 30 1/8/1981 2/18/1986 4/1/1991 5/11/1996 6/22/2001 :112006 U SIY�s+@9,L€Yi�'75t =ank - _ TRUCKEE DONNER rueu c U11111Y 01S1110 be no on-going or maintenance costs associated with this structure and up-front costs are provided in our response to Question 5. While there are other alternatives to consider, the conventional and straightforward nature of this structure will best serve the District going forward within the credit community and best position the District for its future capital needs. With regard to the issue of a cash funded debt service reserve fund or surety bond for our recommended structure or any structure, UBS recommends cash funding a reserve for your proposed financing. Establishing either feature as part of your financing would be viewed very positively in the credit community and go further to help the District obtain the best bond ratings and lowest cost of bond insurance. In today's market, given the historically low rates reflected in the graph above, we recommend utilizing a cash funded reserve given the current relative low cost of borrowing and your potential to have the reserve earn at higher rates in the future. With regard to call features, UBS recommends the current market accepted standard of a 10-yr par call. Any earlier call feature would bring with it a yield penalty that would generate a more costly borrowing. More importantly any earlier call feature would have a significant impact on the yield to maturities beyond the call date even if you were to assume no yield to call penalties. Please see below a graph that illustrates this penalty by comparing yields to maturity after the assumed call date for 7-yr, 8-yr, 9-yr and 10-yr par calls. 5.00o/n 4.50% . ° 10-Year Call —9-Year Call 4.00% --8-Year Call — 7-Year Call 3.50% 7 D W O N C kO 00 O N V 1p N N N N N R1 m m M O O O O O O O O O O O O N N N N N N N N N N N N OTHER STRUCTURES TO CONSIDER Another consideration, given the current inverted shape of the treasury yield curve, is to defer principal without incurring a significant increase in your borrowing costs. One structure to consider in this vein is to begin principal amortization in 2027, the final 10-years of a 30-year amortization. This deferred principal structure would still have a final maturity in 30 years and we would ensure that the amortization fell appropriately within the useful life of the assets as directed in the rfp. For a cost comparison, the all-in TIC for principal amortization over 30-years is 4.707% while the all-in TIC for a deferred principal structure is 4.832%, only 12.5 bps higher. If the District were interested in a deferred principal structure, a further consideration would be to issue this structure as variable rate bonds. Issuing deferred principal variable rate bonds would improve coverages significantly above those associated with conventional level debt service and cost 1.068% less in all-in TIC, assuming a 3.50% cost of variable rate debt that includes on-going support cost. The cost savings would be greater if you assumed the ten-year average of California high-grade rates of 2.47%. As stated above, the primary benefit of these deferred structures is to provide the District more cushion for future coverages. The downside or risk is that the District would be increasing debt service in later years relative to a level debt service structure, potentially limiting its future financing flexibility. In addition, the variable rate structure exposes the District to the possibility of variable rates trading above fixed rates down the road. Considering those risks, please see a summary table of results on the following page for our recommended level debt service structure, the deferred fixed rate structure and the deferred variable rate structure. All scenarios assume a $20 million new money financing in the current market. UBS $at kst , 2 1 TRUCKEE DONNER rua_tC Utttir� orsrr�cr Fixed Rate Fixed Rate Variable 114iei Level Structure Deferred Structure Deferred Total Debt Service 540,410,366 549,623,729 $41,925,000 Avg.Annual Debt Service 1,337,845 1,642,867 1,388,015 Maximum Annual Debt Service 1,340,100 2,789,750 2,642,450 DSRF Sizing 1,340,100 2,053,584 1,735,018 TIC 4.707% 4.832% 3.510% Again, UBS recommends the District pursue a conventional fixed rate level debt service financing given current market conditions; however, the nuance of the current flat yield curve suggests monitoring the market for the new money structure as well as the proposed refunding. 2. Do you foresee any obstacles in the District's financing plan? Please comment on the use of multiple revenue streams to support the transaction and whether you believe bond insurance will be available and beneficial to the District. On the surface UBS does not see any problems with the District's plan of finance. It is not uncommon for water resource issuers to want to use one time revenue sources such as standby charges to offset debt service requirements. UBS is experienced in structuring and selling debt for entities that rely on one time and multiple revenues having sold over $600 million of COP'S for the Eastern Municipal Water District, an agency that relies on 45% of their revenues from one time sources. However, from a credit perspective both from the rating agencies and insurers, a recurring revenue source is always more credit worthy than one associated with future development. The District has had experience with the issuance of Mello Roos bonds. As you may recall the market views future growth speculatively and hence the typical non-rated and non-insured nature of those obligations. The same is true with revenue bonds. If the District's debt service is forecast to be paid from one time revenues, and the view from the credit community is such that they do not believe the District has rate raising capacity then it could be a credit issue. However, the District has in its defense the history that it has raised rates for these projects and also has a rate covenant that requires it to raise rates if one time revenues fall short. UBS believes the District's credit quality should fall into the "A" category from various rating agencies. The agencies measure credit quality by looking at a variety of factors that fall into five specific categories: legal, economic, administrative, financial and system issues. The chart below further breaks down the credit issues analyzed by the credit community: Security Pledge Employment Board-Form&Legal Budget Variance in Facilities&Planned Debt Service Reserve Fund Economic Diversity Authority Current Account Improvements Flow of Funds Demographics Legal&Political Constraints Rates&Charges Adequacy of System Permitted Investments Growth Rates&Long-Term Labor-Management History Financial Position& Operation&Maintenance Debt Structure Development Planning Methods Fund Balances history Insurance Provisions Customers Rating Setting Process Reporting&Accounting Construction Risk Rate Covenant Assessed Valuation methods Compliance with State& Additional Bonds Test Debt per Capita Billing&Collection Federal Regulations both on treatment and distribution Typically credit analysts define the rating category by the strength of the economic/service area of the utility. In this area the District shows very nicely within the town of Truckee. Truckee's median effective buying income of $53,824 represents 123% of both Nevada County and the State of California and 105% of Placer County. (Stats are from 2005 Sales and Marketing Management). rt"nent 3 OP� a CBa avesk TRUCKEE DONNER rur Ec u11111r D1 IWI Housing growth and employment have been quite good leading us to believe that the "A" category is a good place for the analysts to start. The existing legal provisions could be interpreted as average to weak due to the highly flexible rate covenant/additional bonds test along with the ability to use one time revenue sources. The system should be interpreted as average to above average due the plentiful resource, additions of Donner lake Water Company and Glenshire Water system offset by the District's capital needs. From an administrative and management perspective the District should be viewed favorably having already approved two rate increases to service this debt issuance. Lastly, it leaves the District's financial performance. Analyzing the 2005 audited financial report it appears that the District met debt service 1.32 times. Also, cash balances and liquidity fell from previous years. This leads us to believe that the rating agencies will look at the District's credit as an "A/A2 or A-/A3". Under all circumstances UBS would recommend the District apply for bond insurance as it will be available and analyze the cost effectiveness of the insurance bids. Assuming an "A" category rating the breakeven insurance premium in this market would be 80 bps. Thus if the District can receive bids lower than 80 bps than it should insure its transaction. .3. Please describe your firm's experience in selling tax-exempt California revenue bonds. Combining the local expertise of a dedicated California trading desk, extensive California utility financing experience, and the salient national presence of a top-ranked global investment bank, UBS offers the District an ideal set of resources. UBS is the Number One managing underwriter of tax-exempt California Utility Revenue Bonds since 2000; and of greater relevance for your proposed financing, UBS is the Number One managing underwriter of tax-exempt California Water Revenue Bonds for the same time period. Please see the charts below that provide the rankings in these categories. California Senior Managed California Senior Managed Utility Revenue Financings Water Revenue Financings January 2000 to Present 2000 to Present l )s.'.Jk, 5,136.5 .E.F+' 4,432.4 Cmgroup S 1, 4,336.8 Gtigroup 3,559.1 j Bear Stearns 2.790.0 Bear Stearns 2,398.2 Morgan Stanley 1,875.3 Morgan Stanley },820.3 Stone&Youngberg 1,414.9 Stone&Youngberg 1,311.4 - Lehman Brothers 874,E - Lehman Brothers 754.8 j 1 P Morgan 12.2 1 P Morgan 712.2 EJ De La Rosa 28.9 628.9 16.0 E J De La Rosa 5 Banc of America ___.._ ___. _....__. ___. _+ 4714 -/` Banc of America ___... ............. .._..__ $0 $1,500 $3,000 $4,500 $6,000 $0 $1,500 $3,000 $4,500 Note:Full Credit to Senor Manager Source:Securities Data Corporation Our recent experience reinforces UBS' position and capabilities, having just priced, as senior manager, Metropolitan Water District of Southern California $200 million Water Revenue Bonds on August 2nd and having just been appointed for an estimated $40 million issuance of Water Revenue COPS for Azusa Light & Water. Please see on the following page a table of our Water and Wastewater financings over the past two years. UBSBa kzrnent 4 TRUCKEE DONNER Iis�IC UIIt101 DISl i UBS' Senior Managed Negotiated State of California Water and Wastewater Financings 2004 to Present Sale iate issuer Par ($rnmi) Issue Description Pending City of Azusa $40.00 Water Rev Certs of Part 08/02/06 Metro Water Dist. of Southern Cal 200.00 Water Revenue Bonds 01/31/06 Eastern Municipal Water Dt 160.34 Water&Sewer Rev Certs of Part 10/05/05 Los Angeles Co Sanit Dt Fin Auth 182.92 Capital Projects Revenue Bonds 08/03/05 Sacramento Reg Co Sanit Dt 61.22 Refunding Revenue Bonds 08/01/05 Rancho Calif Wtr Dt Fin Auth 48.44 Refunding Revenue Bonds 06/29/05 Vallecitos Water Dt 66.70 Water&Wastewater Enter COPS 05/24/05 Corona Dept of Water&Power 29.02 Certificates of Participation 05/19/05 Eastern Municipal Water Dt 16.25 Special Tax Bonds Imp Area A 02/01/05 Elsinore Valley Muni Water Dt 51.95 Certificates of Participation 10/27/04 So California Metro Water Dt 262.30 Water Revenue Bonds 10/19/04 Sacramento Co Sanit Dt Fin Auth 470.16 Revenue Bonds 08/25/04 Palmdale Water Dt 38.29 Certificates of Participation 07/01/04 Eastern Municipal Water Dt 9,16 Special Tax Bonds 06/23/04 Yucaipa Valley Water Dt 45.73 Wtr Sys Rev Cert of Participation 06/22/04 Rancho Calif Wtr Dt Fin Auth 97.76 Adjustable Rate Revenue Bonds 06/09/04 Daly City-California 9.86 Certificates of Participation 03/18/04 California Dept of Wtr Resources 94.83 Water System Revenue Bonds 03/11/04 Santa Margarita/Dana Point Auth 62.77 Revenue Bonds 03/10/04 11California Dept of Wtr Resources 139.79 1 Water System Revenue Bonds Total $2,087.58 California Staffing. Within California, our public finance practice includes four public finance offices, and 36 dedicated municipal bankers. As indicated in the table below, our Firm's investment banking professionals constitute the largest commitment of public finance investment banking personnel by any Wall Street firm in California. UBS Investment Bank 36(S.F./L.A./M.V./Sac.) 1 (L.A.) 1(L.A.) Stone&Youngberg 21 (S.F.A.A./S.D.) 1 (S.F.) 1 (S.F.) Citigroup Global Markets 21 (S.F./L.A./Sac.) 1 (L.A.) 1 (L.A.) BA Securities 19(S.F./L.A.) 1 (S.F.) 1 (S.F.) J.P. Morgan 15(S.F.) None None Goldman, Sachs 11 (S.F./L.A.) None None Morgan Stanley 10(S.F.) None None Lehman Brothers 9(S.F./L.A.) None None Merrill Lynch 9(S.F./L.A.) None 1 (L.A.) Bear,Stearns 7(S.F./L.A.) None 1 (L.A.) UBS' Municipal Sales and Distribution Capabilities. The Municipal Bond Department is responsible for the sales, trading, underwriting, marketing and distribution of municipal securities. The Municipal Bond Department is composed of 126 professionals in seven offices across the country. Of particular note is our presence in offices located in close proximity to the District to include Incline Village, Reno, Grass Valley, Roseville and Sacramento that provide UBS with 52 financial advisors who can target local investors. Our solid retail network has helped us establish an aggressive base for our previous financings for Placer County municipalities. We expect to receive the same favorable responses from these accounts for the District's proposed transaction. The map and table on the following page illustrates the extensive direct retail sales network of UBS in California. OP�BIrvestmera 5 S Bank TRUCKEE DONNER rusLtc uflt�re oisrR�cf �r Local Retail Distribution Network r Placer&Nevada County Presence Chico r Grass Valley l Roseville Over$1 billion of Assets Under Management t ° + Sacrament Napa 14,793 Active Retail Accounts Santa Rosa P .;- Walnut Kenwaod Stockton Alameda ,Merced California Presence San Francisco(2 Y Fresno San Mateo ,r Palo Alto $92 Billion of Assets Under Management Menlo Park San lase ' ; ,�� �,3 Carmel 700,492 Active Retail Accounts 'rJ+s'' I Santa ear bar "''Is 45 Offices Statewide Ventura Los Angeles(2 s,"` , 1,158 Retail Brokers Beverly Hills f E �§ a Long beach ` sni�lPz In-State Distribution Resources Newport Beach 4 oran gRanche Committing Center in Los Angeles C.",boa ernand� Missionvle;o 1 Municipal Institutional Salesperson La Jolla San Diego • UBS office 4 Traders of California Bonds 2 Municipal Retail Liaisons UBS Investor Coverage. UBS has taken a deliberate approach to maximizing investor penetration by blanket covering all investor segments, as opposed to targeting selected accounts. While most firms tend to focus a majority of their marketing efforts on larger institutional accounts (with assets over $1 billion), UBS' unique marketing network also covers smaller mid-tier accounts who are often overlooked by other firms. In sum, UBS' competitive distribution advantage provides a tangible value-added service to our clients, which effectively translates to a lower cost of capital. UBS covers the four primary categories of buyers, as shown on the following page, through its (i) institutional sales force, which primarily targets long-term bond investors; (ii) municipal sales force, which maintains relationships with its investors regardless of the type of transaction; and (iii) retail brokers, who cover high-net-worth individuals and small, regional institutions. UBS Investor Coverage Tier 1 I FTier II Tier III Retail Trades of very large size Trades of moderate size Least price sensitive of Small trades and retail Very price sensitive Sophisticated,less price institutional investors buyers Active traders sensitive than Tier I Buy and hold accounts Quality and name driven Covered by every Wall investors Rarely trade Not very price sensitive Street firm Not active traders Quality conscious,at times Biased towards Large pension funds Covered by most firms name driven "household"or Insurance companies Small insurance companies Coverage often omitted by recognizable names Global financial institutions Corporations many firms Money managers Small pension funds Small corporations Small bank trust accounts Large Institutional Coverage: UBS covers Tier I institutional accounts with 17 municipal sales executives located in New York, Boston, Chicago, Orlando, San Francisco and Los Angeles. A majority of our institutional sales force has been involved with the municipal bond industry for years, and as such, has developed one-on-one relationships with all of the major institutional purchasers of municipal bonds. UBS sold $36 billion of municipal bonds to institutional accounts in the secondary market alone in 2004. Small Institutional Coverage: Complementing our large institutional coverage is UBS' Regional Institutional Sales ("RIS") Account Group which markets to over 6,600 smaller institutions, such as regional corporations and trust departments (Tiers II and III). The RIS group consists of 425 specialized brokers within UBS extensive branch network who market financial products to small institutions not covered by our institutional sales desk. Through our IRIS network, UBS is one of the few major investment banks to maintain significant contact with smaller institutions. These smaller institutions, whose aggregate purchases often constitute a sizable portion of investor participation in a municipal offering, are frequently overlooked by other major investment banks. UBS �rJ��t �„� 6 � n F rueuc uaE D n9sNtci Retail Coverage: The RIS group markets municipal securities to high net worth individuals. Because municipal bonds are not always understood by the average retail buyer, high net worth individuals with added credit expertise are the major "retail" purchasers of municipal bonds. UBS' extensive retail distribution network is among the largest in the securities industry, totaling 7,725 financial advisors located throughout the country. UBS views the retail market segment, in conjunction with an aggressive institutional marketing effort, as a vital component of any marketing strategy which seeks to achieve the lowest cost of funds for issuers. Since 1992, our direct sales to retail investors have more than quadrupled. 4. Please provide a list of the individuals who will be assigned to work on with the District. Describe the role of each individual and include the telephone and facsimile number of each member of the primary banking team. Include a brief resume of each individual's education, training and experience. The lead day-to-day banker assigned to the City is John Costagliola, a Managing Director with over 20 years of public finance experience. Mr. Costagliola will serve as our firm contact and will have primary account responsibilities. Working closely with Mr. Costagliola will be Mark Adler, a Managing Director in our Los Angeles office who has worked with the District on its past Mello Roos financings. Managing all technical analysis and execution support, will be Tom Innis, a Director, and Jake Campos, an Analyst, based in San Francisco. Each individual on the team is committed fully to providing the highest level of service and would be available to commit up to 100% of their time as required to complete the proposed financing. The team's most recent and relevant experience includes the Metropolitan Water District of Southern California and Azusa Light &Water Revenue financings referenced in our response to the previous question. A more extensive set of experiences along with education, training and requested contact information for each individual is provided below. JOHN COSTAGUOLA Role:Lead Banker and Primary Contact—Responsible for coordination of all UBS efforts on behalf of the District. Managing Director Available to attend all meetings for the District's proposed financing. San Francisco Related Experience: Mr. Costagliola has extensive experience with numerous water and wastewater financings Co-Head West Coast throughout the United States. Senior managed clients include the Sacramento Regional County Sanitation District, Infrastructure Sacramento County Water Agency, San Diego Water and Wastewater Department,State of California Department of Water Resources, Metropolitan Water District of Southern California, City of Los Angeles Wastewater, Eastern Municipal Water District, Honolulu Wastewater Department, Santa Margarita Water District, Santa Clara Valley Water District,Chino Basin Municipal Water District,the City of Detroit Sewage Department,the Atlanta Water and (415)954-6898 Sewer Department,and East Bay MUD.Former Head of Standard&Poor's Western Utility Ratings Group. (415)788-3271(fax) Background:BA—Fordhani University.20 years in public finance,NASD Principal MARK ADLER Role:Co-Lead Banker—Additional senior banking support for the District's proposed financing. Managing Director Related Experience Mr. Adler joined UBS in early 1990 after completing eight years with the municipal finance Los Angeles department of another major investment banking firm where he was Manager of that firm's Western Region. He has been involved with over 750 senior-managed bond issues in California and has been involved in numerous (213)253-5403 infrastructure and water utility financings. (213)253-5401(fax) Back r nd:B.S.—Wharton.M.B.A.—Wharton.24 years in public finance. Tom INNiS Role: Execution Banker- Responsible for coordinating technical and execution efforts for the District's proposed Director financing.Available to attend all meetings for the District's proposed financing. San Francisco Related Experience ience. Mr. Innis'experience includes numerous water and wastewater and utility financings.Mr. Innis has been responsible for all aspects of financing execution for issuers such as Eastern Municipal Water District,the Metropolitan Water District of Southern California,the Sacramento Regional County Sanitation District,the State of (415)954-5979 California Department of Water Resources,and San Diego Water Department. (415)788-3271 (fax) B ck ro n :MBA—Wharton. BS—United States Military Academy.6 years in public finance. JAKE CAMPOS Role:Support Banker-Responsible for providing technical supportfor the District's proposed financing. Analyst Related Experience: Mr. Campos is responsible for providing quantitative and analytical support for a variety of San Francisco infrastructure financings for such clients as Eastern Municipal Water District, the City of Corona,the Metropolitan (415)954-6896 Water District of Southern California,the Southern California Public Power Authority and the County of Sacramento. (415)788-3271 (fax) Back round: BS—Cal Poly. 4S UBS Banktmend 7 TRUCKEE DONNER too,IC 03111r' DISM0 IMMUNE IN I NIM1111119 5. Please provide a fee quote that includes all components of the gross spread. Please indicate what portions of the quote may be considered fixed. Please assume that the Financial Advisor has developed a financial pro-forma and will take the lead in preparing the District's rating presentation. In estimating underwriter's counsel expenses,please note that Stradling Yocca will draft the preliminary and final official statements. Please indicate which firm you would consider using for underwriter's counsel. Assuming a $20 million par fixed rate financing meeting normal market underwriting criteria, UBS is proposing the following not-to-exceed fee schedule for both a rated and insured transaction. Pe Bond Totai Average Takedown $3.500"' $105,000.00 Management Fee 0.000 0.00 Underwriter's Counsel Fee 0.75 15,000.00... Expenses(2) 0.308 9,278.33 Total $4.558 $129,278.33 s UBS Out-of-Pocket Expenses $0.050 $1,000.00 California PSA Fees 0.010 300.00 CDIAC Fees 0.100 3,000.00 TBMA Special Assessment 0.030 900.00 CUSiP Numbers 0.025 745.00 DALCOMP Charges 0.078 2,350.00 Day Loan Interest @ 1.00% 0.007 208.33 DTC Clearance Fees 0,009 275.00 Total $0.308 $9,278.33 (1) Fixed. (2) UBS General Expenses include travel expenses,copying,telephone calls,delivery charges,etc.and will be billed at cost. Our proposed fees assume that UBS is the sole-senior manager on the transaction. Given our strong interest in working with the District, we are waiving any management fee and proposing an aggressive spread. We believe the proposed takedown component is aggressively low but enough to guarantee a strong retail sales effort for the proposed financing and if necessary will enable UBS to inventory unsold maturities for subsequent sale. We would consider using Nossaman, Guthner as Underwriter's Counsel, specifically working with Jeff Stava who has worked with Mark Adler and the District's Mello Roos financings in the past. UBS taxi kt ' 8 TRtCKEE NONNER I U1111 CI 6. Why should TDPUD select your firm to senior manage the proposed transaction? Truckee Donner Public Utility District should select UBS as senior manager for the proposed water financing for the following reasons: UBS is the industry leader in underwriting Water Resource financings in California; UBS is committed to the municipal and California markets; UBS has direct experience in underwriting water credits with similar revenue structures at aggressive interest rate levels; UBS has experience working with the District as senior manager on its Mello Roos financings; UBS has experience working with the District's financing team and will complement the professionals already engaged; UBS has relevant Rating Agency expertise that can be called upon, if necessary, and; UBS has proposed an aggressive yet realistic spread that will get retail buyers along with mid-market and large institutions to participate in the transaction. �op S Bank i 9 Proposal To: j€B Pie, i 3. B fyi W Yee ig P , S 3 3 a F € �3 EE [ � � M TO PROVIDE SENIOR MANAGING UNDERWRITING SERVICES August 7,2006 STONE YOUNGBERG STONE & GBERG Via E-mail August 7,2006 Ms.Mary Chapman Ms.Sandra McDonald Administration Services Manager Principal Truckee Donner Public Utility District McDonald Partners 11570 Donner Pass Road 222 High Eagle Road Truckee,CA 96160 Alamo,CA 94507 marvchapman(u)tdpud.(.)rg s��ndrawmcdonalclpartiers.cc�m Dear Mary and Sandra: On behalf of Stone & Youngberg, we are pleased to submit our qualifications to provide underwriting services as senior manager in connection with the Truckee Donner Public Utility District's proposed$27 million tax-exempt certificates of participation. Stone & Youngberg is a full-service broker-dealer offering a wealth of innovative banking and underwriting expertise. We are confident that we will make a distinctive and valuable contribution to the District's financing if chosen as the lead underwriter. As evidence of our qualifications,please consider the following: ■ Dedication to Municipal Finance. For 75 years, Stone & Youngberg has focused on helping California local governments finance their capital needs. As a driving principle, we put our clients' interests first and work to deal fairly with both our issuer and investor clients. Stone &Youngberg has underwritten more California bond issues in recent years than any other firm — 798 issues between 2001 and 2005,representing$15.3 billion in public capital. ■ A Leading Underwriter of Enterprise Bonds and Lease Financings. Over the past five years Stone & Youngberg has structured and/or underwritten 69 separate water/wastewater issues for California utilities, representing a dollar volume of$1.33 billion. These have included financings for a wide array of clients including Brea,Clovis, Covina,Culver City,Escondido,Fairfield,Los Angeles, Oxnard, Richmond, Sacramento, Santa Paula, Stockton, Westminster, the Amador Water Agency, the Castaic Lake Water Agency, Cucamonga County Water District, Goleta Water District, Rancho California Water District and the San Jose-Santa Clara Clean Water Financing Authority. Our lease/certificate of participation experience includes financings for water and wastewater utilities,and general governments. In the past 5 years, Stone & Youngberg underwrote 117 lease financings worth$1.7 billion for California local agencies. ■ On-the-Market Pricing. Stone & Youngberg's underwriting and trading volume ensures that we provide our clients with both on-the-market pricing at issuance and ongoing liquidity in the secondary market. In an effort to provide greater price transparency and openness in the bond pricing process,we launched an online "Real-time Order Flow Monitor Screen" back in 2001. This tool provides our issuer clients with a direct view into the order flow on the morning of pricing from any computer with internet access. Truckee Donner Public Utility District Request for Proposals for Underwriting Services August 7,2006 Page 2 ■ Experienced, Hands-On Financing Team. Stone & Youngberg offers the District a dedicated team with respected investment banking skills, experience with innovative financing programs, and demonstrated success in executing complicated and unusual financing programs. Our investment- banking team has considerable experience in all aspects of utility finance in California. Our banking and sales staff are also very familiar with the Truckee area — both through professional experience underwriting transactions for other Tahoe-area communities and personal experience vacationing in the area. (In fact, one of our top institutional salesmen, Todd Huckins, relocated to the area a few years ago and now covers a range of institutional clients from his Truckee home-office.) Our bankers have presented debt restructuring and refunding analyses to the District in the past and our traders have bought and sold the District's securities in the secondary markets. As an individual utility and as a member of NCPA, the District has played an important role in the evolution of municipal utilities in Northern California,which we believe contributes to the fundamental economic value of the enterprise. We feel strongly that the experience of our team and understanding of the District's unique and important role in Northern California will complement the efforts of the District staff and its consultants to ensure a successful transaction. Stone&Youngberg has earned a reputation for honest, thoughtful,energetic service to our clients for 75 years. We are prepared to fully dedicate all of the resources necessary to assist the District in meeting its financing objectives. We appreciate the opportunity to present our credentials for this prospective work with the District. We will give this effort our highest commitment and look forward to earning this business. Sincerely, John E. Muus Stephen E.Heaney Eileen Gallagher Managing Director Managing Director Director (212) 497-7114 (213)443-5001 (415) 445-2311 jmullstc%syllc.coln sheanet tz?st'llcxom egallagrher(&,,�llc.rom III f 4 III . � C TABLE OF CONTENTS Page RefundingAnalysis............................................................................................................................................1 FinancingPlan....................................................................................................................................................2 StructuringConsiderations...............................................................................................................................4 Marketingof 2006 COPs..................................................................................................................................8 Pricingand Underwriting..................................................................................................................................9 Overview of Stone&Youngberg....................................................................................................................7 Stone&Youngberg's Underwriting Activity.................................................................................................7 Lease Revenue/Certificates of Participation Experience................................ Water and Wastewater Experience..................................................................................................................7 FinancingTeam..................................................................................................................................................9 FeeProposal.....................................................................................................................................................12 Underwriter's Counsel.....................................................................................................................................13 ValueAdded Services......................................................................................................................................13 APPENDICES Appendix A Preliminary Bond Suing and refunding Analyses Appendix B Estimated Historic and Projected Water Enterprise Pro Forma Appendix C Stone &Youngberg Water and Wastewater Enterprise Underwriting Experience.Since 2001 Appendix D Stone &Youngberg California Lease revenue and COP Underwriting Experience Since 2001 1. Comment on whether b lie�,e the District should pursue a refunding of the Scries 1996 COPS. R.EFUINDING ANALYSIS Stone & Youngberg recommends that the District refund the outstanding 1996 Certificates of Participation (COPS) to obtain present value savings and to provide an opportunity to restructure key legal covenants. Overview of 1996 COPS: The MBIA-insured 1996 COPs are currently outstanding in the principal amount of$8,465,000 at interest rates ranging from 5.25%on the 2006 maturity to 5.40% on the final 2021 maturity. The COPs are callable on any date on or after November 15, 2006 with 60 days notice to the trustee and at least 30 days notice to certificate owners at a redemption price of 102%plus accrued interest. Refunding Economies: To evaluate the pure economics of a refunding,we first analyzed a full refunding of the 1996 COPS to the original 2021 final maturity and then analyzed a refunding of only select maturities. Since the refunding is expected to be combined with new money issuance,we also evaluated the refunding to an extended 30-year maturity to improve the annual gross savings and coverage. For purposes of this analysis,we assumed that the bonds qualify for a"AAA" rating through the purchase of bond insurance at a conservatively estimated premium cost of 30 basis points times total principal and interest, with an underlying "A" raring. We further assumed that the reserve from the prior 1996 COPS would be available to reduce the cost of the refunding escrow. Finally,we assumed that the refunding would share costs of issuance with the new money issuance discussed in Question 2. (We did not evaluate the use of any derivative products on the refunding or new money per the District's direction in the Request for Proposals.) The "partial refunding" scenario assumes that only the maturities producing the most economic savings are refunded—in this case maturities 2009 through 2021. The following table presents a summary of our preliminary refunding analysis for market conditions as of August 3, 2006; complete schedules are provided in Appendix Full Refunding to Partial Refunding to Full Refunding to 2021 Maturity 2021 Maturity 2036 Maturity Par Amount $8,200,000 $7,825,000 $8,120,000 Refunded Par $8,465,000 $7,360,000 $8,465,000 Net Present Value Savings In$ $416,864 $449,142 $108,147 As%of Refunded Par 4.92% 6.10% 1.28% Average Gross Annual Savings $68,373 $24,813 $203,337 In determining whether a refunding is economical, many municipal issuers use a target threshold for net present value savings of at least 3% of the refunded principal. Although this standard is somewhat arbitrary, over the past 20 years it has proved to be useful in identifying the appropriate level at which to initiate refundings. The target level depends to some extent on the direction that interest rates are perceived to be heading and the current relative levels. When interest rates are historically low, as they are today, "compression factors" alone may justify a lower minimum savings threshold. If interest rates are expected to rise, or the yield curve changes, a lower minimum savings threshold can be justified. Since we believe the current yield curve inversion is likely to correct in the near-term and forcing the long term rates higher, the 3% minimum savings threshold is a reasonable parameter for Truckee-Donner. At current interest rates, the District is able to refund the 1996 COPS with present value savings in excess of the 3.0% minimum threshold. We recognize that interest rates could rise between the date of this RFP and the date on which a refunding is completed and so tested the interest rate sensitivity of the refunding. Our analysis indicates that interest Page 1 rates would have to increase by about 30 basis points before the refunding savings would fall below the 3% minimum threshold. Although this margin of safety is not considerable, we recommend initiating the refunding along with the new money issue (for many of the reasons discussed below) and carefully monitoring the market. Qualitative Considerations: In addition to the economic savings that justify refunding the 1996 COPs, certain qualitative factors should be evaluated to determine whether there are other reasons for completing the refunding. For example,it's possible that the covenants governing the 1996 COPs would impair the new money financing by making it more expensive or by limiting its acceptance in the bond market. If so, a complete refunding of all of the 1996 COPS might be advantageous to the District even if the refunding produces savings lower than the minimum threshold. In other words, if certain restrictive covenants are eliminated, the overall financing might actually produce greater economic benefits in spite of a reduced level of saving on the refunding portion. From our initial review of the outstanding 1996 COP documents, we note two potential issues to explore: (1) the rate covenant,and (2) the test to permit additional future debt. Rate Covenant: The District's 1996 financing included a covenant to charge rates sufficient to provide 110% debt service coverage from Net Revenues after payment of operations and maintenance costs (excluding depreciation and replacement reserves.) This coverage level might be considered aggressive in the context of the 110% to 150% range that we typically see with enterprise revenues, except that the definition of revenues in the 1996 COPS explicitly excludes all facilities fees or connection fees from this rate covenant calculation. Given the diversified and largely residential nature of the District's rate base and the exclusion of connection fees, coverage of 110% should not present a problem with the rating agencies. Of more concern, however,is whether this covenant constrains the District's flexibility on the proposed 2006 debt Additional Debt Test. The 1996 COPs financing permits additional future parity obligations secured by Net Revenues with debt service coverage of 110%demonstrated in 12 of the 18 months 12rior to the issuance of such debt. The test does allow for recognition of the two consecutive 6% annual rate increases adopted on July 13,2006 in this calculation but only if they were approved and in effect for at least one month prior to the approval of the new debt. In our initial read of this language, this seems to preclude from the calculation both rate increases because they do not go into effect until January 1, 2007 and January 1, 2008, respectively. We would look to the District's bond counsel for clarification on this point. The District's Request for Proposals indicates a desire to use development-related facilities fees to pay a portion of the debt service on the 2006 COPs. Unless the District's Net Revenues -- excluding facilities fees and (we think) excluding the recently adopted rate increases -- provide sufficient revenues to meet the 110% coverage requirement on the proposed new money financing,then the District would not be able to issue on parity to any un-refunded 1996 COPS. The District could create a fresh template for a new rate covenant that gives recognition to connection revenues and/or the adopted rate increases by either(i) closing off the lien of the 1996 COPS and parity SRF Loan and issuing debt on a subordinate basis to those securities; or (ii) refunding all of the 1996 COPS and potentially closing off the lien of the SRF loan. (We would need to evaluate the SRF loan documents to confirm that this is a feasible option.) See further discussions in Question 2,below. 2. D; , you tortsee :im obstsides in the District's fins cim,, C otrarnet)t �n the use of multiple revenue strearns to support the transaction and Whether }ott belinie horid itisursatice -%611 be a�,ailable and berg tic.i.al to the District. FINANCING PI_-XN While we do not see any major obstacles to the proposed financing plan, there are a number of structuring considerations that must be carefully evaluated, as discussed below. Although interest rates are still very low on an historical basis (in fact, they are only about 15 bps off the 40 year lows of last year comparing the Page 2 "AAA"30-year MMD of 4.23%in the week of August 26 to September 2,2005 to 4.38%on August 4,2006), many economic factors suggest that rates will continue to rise in the foreseeable future. The importance of a strong underlying rating and timely market entry at these currently attractive levels can not be underestimated. Beyond that,we note two potential obstacles that could arise in a "worst-case" scenario. The first obstacle is the cost of insurance and the efficacy of a refunding. Although we expect the District to get strong insurance bids regardless of the underlying rating, the cost could increase by as much as double if the underlying rating were in the "BBB" category rather than the "A" category. If so, this could have a negative impact on the refunding economics and the District's ability to satisfy a 3% target savings threshold. The second obstacle would involve an injunction filed by rate payers to stop the project. From our review of the July 5, 2006 public meeting, it was apparent that some District residents were concerned about the proposed rate increase, the use of COPS proceeds and the methods of financing. It is not uncommon in areas where second homes and part time residents predominate for there to be a negative reaction to rate increases. The best way to avoid negative reaction is through information exchanges with the community. Clearly, the District has an excellent program in this regard as was evidenced by the report of the public meeting and it appears that the concerns have been addressed. Where rate increase controversy exists, however, rate payer suits can emerge in spite of the best intentions. These suits, which require only three individuals to file, can temporarily stop a financing until the matter is either dismissed by a judge or resolved though litigation. To avoid rate payer injunctions, utility districts can enact "resolutions of necessity"which invoke wide-range emergency powers. Such resolutions are often tied to environmental issues or to perceived health concerns resulting from an inadequate water supply. However, the California Supreme Court's recent ruling in the Bighorn-Desert View Water Agency vs. Beringson case, holding that water rates could be challenged through the initiative process, may compromise such an approach. That said we don't see either of these issues as looming concerns at this point in time. Credit Snapshot: The first step in evaluating the District's proposed Water Credit Considerations financing plan is to gain a thorough understanding of the proposed credit. In assessing the credit quality of a water utility,we will examine ® Local Economic Conditions: key credit criteria including the economy of the service area, the size Job base,population growth, and diversity of the revenue base, managerial and operational aspects wealth levels,etc. of the system, including water supply, and enterprise financial • Customer Profile:Types of performance. This assessment would influence our recommendation customers,current and future on the specifics of the proposed transaction— the bond structure,rate demand,ratepayer concentration covenant, flow of funds, additional bonds test, reserve fund • Operational Factors:Capacity of requirement,etc. systems, condition of capital assets,water supply, management The District's water system is large,complex and relatively"high-cost" ability,regulatory compliance compared to more urbanized, non-mountainous systems. Varied " Water Rates:Rate sufficiency, terrain with elevations ranging from 5,800 feet to 7,400 feet require an comparative rates,affordability of extensive network of pumping stations and pressure zones to serve rates relative to local wealth levels, the District's 12,000 customers spread over a large, 44-square mile rate-setting process, Financial Data:Stability and service area. The seasonality of demand in the Tahoe area creates a consistency of revenues,liquidity system with peak service requirements well above what might be of enterprise,collections history, needed for much of the year. Summer fire hazards add to service reserves,debt service coverage capacity requirements and winter weather conditions add to system . Legal Structure and Covenants: operating costs. The District water supply is derived from thirteen Revenue pledge,rate covenant, deep drilled wells tapping the Martis Valley Aquifer, a source that is reserve fund,debt structure described in the Official Statement for the 1996 COPS as both abundant to meet demand for the next century and protected from diversion beyond the Truckee basin by federal law. in Page 3 The District's customer base has nearly doubled from when the 1996 COPs were issued — from 6,550 connections to approximately 12,000. The District's 2006 Budget indicates that roughly 84% of operating revenues are derived from residential customers and the 2005 Continuing Disclosure Report indicates that the top five customers account for less than 4% of total revenues. About 60% or 7,000 of the District's connections represent second homes. While the well diversified, residential nature of the District's customer base is a strong positive, we expect analysts to have some concerns regarding the tourism-basis of the local economy and the "discretionary" nature of second home customers. We would work closely with the District and its financial advisor to convey to analysts what makes Truckee so distinctive. First,we would educate analysts and investors on the dual-peaking seasonality of the Tahoe area tourist season. Through our financing experience with the City of South Lake Tahoe and the Town of Truckee, we've found many analysts and investors surprised by the strength of the summer season in the Tahoe area; many erroneously believe that Tahoe is primarily a winter destination. Second,we would describe the development restrictions in the Tahoe Basin which contribute to growth in the Truckee area. We understand that the housing market in the Truckee has remained fairly strong despite the slow down seen in some other markets,with homes in the Old Greenwood development, among others, selling at astronomic prices. The District's recently enacted rate increases provides a flat monthly residential rate in 2007 varying from $51.38 to $70.42 per month depending on pumping zone location. This flat monthly structure insulates the District to a large extent from the seasonality of usage patterns. Based on data from to the Black& Veatch 2006 California Water Rate Survey, the District's fees appear higher than the average Northern California monthly water bill of$38.65 and higher than some but not all of several neighboring jurisdictions. (Average monthly water fees were reported as $55.18 by Tahoe City PUD, $47.93 by Squaw Valley Public Service District, $39.19 by the Alpine Springs County Water District, and $38.50 in Auburn through the Placer County Water Agency—though these rates may be slightly dated.) While debt service coverage on the outstanding 1996 COPS and parity SRF loan have been relatively strong in recent years, the Water Enterprise's operating costs have risen rapidly in recent years (by 62% between 2001 and 2005.) (See our estimated historic and projected pro forma for the District's water enterprise in Appendix B.) The District's recently adopted rate increase proposal assumed that operating cost increases would continue at a rate of 3% annually; the adopted two year 6% compounded rate increase is intended to cover these escalating costs and provide excess funds to re-capitalize an operating reserve fund. The adequacy of the Net Revenues generated by these increases to cover the proposed 2006 debt will depend upon (a) the structure of annual debt payments and (b) the recognition of connection fees in the rate covenant. S"t'Rucr RING CONstDERAIIONS Multiple Revenue Pledge: The financing plan described in the District's Request for Proposals contemplates a pledge of multiple revenue streams to the proposed 2006 Certificates. These revenues include the standard monthly service charges, a customer service charge applicable to the Donner Lake area and, potentially, connection fee or facility fee revenues. The impact of this mix of revenues on the proposed credit will depend upon the structure of the revenue pledge and rate covenant. The customer service charge revenues are drawn from a much smaller subset of customers than the monthly charges but represent a modest portion of the total debt — 8% of the new projects or 6.7% of new money and refunding combination. To the extent customer service charges are folded into a broad revenue pledge, they should have minimal if any effect on the credit. Rate Covenant and Connection Fee Revenue: As discussed in response to Question 1, the development- related facilities fee revenue is not currently recognized in the revenue pledge or rate covenant for the 1996 COPS. These funds could still be used to pay an allocable portion of debt but would not be recognized in Page 4 the coverage calculation under the existing rate covenant. As noted above,a complete refunding of the 1996 COPs would enable the District to craft a new rate covenant. The extent to which connection fees are recognized in a rate covenant is an important credit consideration. Because of the constraints on rate-setting flexibility imposed by Proposition 218,an over-reliance on cyclical development related income to cover debt service costs can sometimes become a credit concern. Analysts fear that if development revenues suddenly decline,the system could be faced with a significant increase on the customer rate base that would be subject to a public hearing requirement and the possibility of a majority protest blocking the increase. Consequently, many rate covenants require that at least an amount equal to one times O&M plus debt service be derived from monthly services charges. In that structure, development-related income can be used to pay debt service, can be recognized in demonstrating sufficient coverage and can be banked in a Rate Stabilization Fund to be drawn down in later years to pay debt service. (From our reading of the 1996 POS,we note that the District already has established such a Rate Stabilization Fund.) A covenant permitting less than 1.00x coverage of O&M plus debt service from monthly service charges could be structured but would require significantly more due diligence on historic and projected development patterns and justification to rating and insurance analysts. If the Rate Covenant for the 2006 debt were to recognize connection fees, we would work closely with the District on conservative but reasonable projections for future development. By comparison, the Sacramento County Water Agency has a 1.25x coverage requirement but as a policy maintains coverage of 1.50x. Projections indicate expected coverage of 3.00x, even after the issuance of two new financings in 2006 and 2008. The Agency also had operating reserves that exceed total annual revenues of$33 million and a rate stabilization fund of 1/3 that amount. Sacramento County is one of the fastest growing areas of the country and considered to be an excellent credit. With these coverage ratios,it obtained a Moody's rating of "A2". These healthy reserve balances and strong coverage levels offset the fact that Sacramento's covenants include impact fees,which currently represent nearly 2/3 of its system revenues. Debt Service Structure: The District's Request for Proposals suggested that the debt be structured based on the useful life of various components. We evaluated several alternative structures. One in which each component is amortized over a useful life up to a 30-year maximum with level savings on the refunding component to the original 2021 maturity. This created a front-loaded debt profile with higher payments due in the early years,dropping off in later years. While this may best match the use of proceeds,it does create more pressure on rates and coverage. Instead,we recommend structuring the debt so that the refunding and new money portions are amortized over 30 years and wrap around the shorter amortization of the equipment lease and SRF loan. Truckee Donner Public Utility District Truckee Donner Public Utility District Scenario:New Money&Full Refunding to Existing Term of 2021 Scenario:New Money&Full Refunding to Existing Term of 2036 Aggregate Debt Service Aggregate LEVEL Debt Service 72.s $2.5 I�tiRP Iu BF.q-pmev.Fuvd BRe[unding COP�Cunrzeuc' Pund�DOnvc[[a6x ComponcJl it�SRPL an■hquipmentC d®Re6mding COPs0Covrt.0 �n Fwd■Di et LakewamQ $2.0 .. ____ ____-_. - 20 - 41 i _. ____ _ _ 1.5 0 $it --- _. - ---- --- - S 1 � � sun 011 ^Pti v ^>ti v` 41 J,y ti ro As illustrated in the graph above, a level debt structure would result in lower payments in the early years and higher coverage. The following table presents a projection of coverage on the 2006 COPS. Page 5 Projected Pro Forma for the District's Water Enterprise Budget Projections FY06 FY07 FY08 FY09 FY09 FY09 Operating Revenues $8,311,601 $8,780,660 $9,277,862 $9,409,621 $9,409,621 $9,409,621 Connection Fees(Estimate)* 737,665 303,246 303,246 303,246 303,246 303,246 Operating Expenses (6,387,056) (6,578,668) (6,776,028) (6,979,309) (7,188,688) (7,401348) Net Revenues $2,662,210 $2,505,238 $2,805,080 $2,733,558 $2,524,179 $2,308,518 Debt Service** $1,113,305 $1,990,901 $1,979,520 $ 1,978,270 $1,976,570 $ 1,979,420 Coverage w/out connections 1.73 1.11 1.26 1.23 1.12 1.01 Coverage with connections 2.39 1.26 1.42 1.38 1.28 1.17 Source: Truckee Donner PUD 2006 Budget and prior audited financials. Projections based on rate increase of 6%in FY07 and FY08,presumed 1.5%increase thereafter from growing rate base and 3%cost escalator. *Connection fee estimated based on 2005 transfer from facilities fund. Assumption would need to be refined. **Debt service includes SRF loan and 1996 COP in 2006 and level annual payments on aggregate debt(including SRF)thereafter. Note that slightly higher debt service payment in 2007 is attributable to long first coupon which could be remedied,if desired,with capitalized interest or a modified amortization. For purposes of estimating connection fee revenue going forward,we used the amount of the 2005 transfer from facilities fund referenced in the District's budget. While this is lower than the transfer estimated for 2006 it is greater than the five year average of fees collected in 2001 through 2005, we assume due to the ongoing development activity in the area. Note that the sufficiency of coverage in future years will depend to some extent on both the projected amount of connection fees and of estimates for base monthly service fees. Due to the recent development activity, we added an escalation of 1.5% annually in FY09 and thereafter to estimate the growth in the rate base. If operating expenses continue to escalate annually, then future rates will likely need to be modestly increased to keep ahead of this inflationary pressure.We would work with the District and its financial advisor to refine all of these assumptions. Likelihood and Economics of Bond Insurance: We expect the District's credit to garner interest from the AAA-rated bond insurers. The cost of such insurance will depend upon the District's underlying credit rating, the insurer's own perception of credit quality, and market conditions at the time of the bids. The spread between AAA-rated enterprise credits and A-rated credits is about 20 basis points on average in the current market. The break-even point insurance bid to provide any savings for an A credit is approximately 115 basis points to an assumed 10-year call date or 132 bps to maturity. In the current market,we've been seeing insurance bids on water system credits in the A-rating category in the range of 20 to 30 basis points times total debt service. (For a BBB credit,the cost of insurance jumps up to about 40 basis points.) At those interest rate and premium levels, bond insurance would generate savings of$250,000-$300,000 to a 10-year par call or approximately$475,000-$520,000 over the life of the bonds. Surety Reserve: We'd also expect the bond insurers to offer the District the option of a surety reserve in lieu of a cash-funded reserve fund. Economically, the additional debt associated with a cash-funded reserve funded from bond proceeds is a "wash" if that reserve can be invested at or near the borrowing cost (about 4.7% in the current market) over the life of the bonds. Alternatively, the District could purchase a surety reserve for about 1% to 2% of the reserve requirement—roughly$32,000—thereby reducing the par amount of the bonds by about$1.66 million. The primary benefit of a surety reserve would be a lower debt principal requiring lower coverage revenues. Draw Schedule: To the extent project funds are not expected to be used immediately, the District could further reduce the par amount of the debt (and required coverage) by net funding the project fund and Page 6 investing the proceeds in a guaranteed investment contract or other vehicle to ensure sufficient funds at the time of expected project draws. 3. Describe tIOUr firm's ccpetlicrice in selling tax-exempt California recerxue builds. OVERVIEW OF STONE&YOUNGBERG Stone & Youngberg is California's largest regional investment banking firm specializing California Long-Term Local Municipal Issues Negotiated and C"mpetitiv feauca 20M-2005 in local government finance. Now p5Ma"ip gUi"'"`'"ga lop 5 Managing Underwriten celebrating our 751h anniversary, the firm has RankedbyNumbe,ofI.— a rich history of providing investment 9 fif1 banking and brokerage services to state and Stone&Youn be`3^^dewnrte 7" g gai mtagng f15.3 billion of bands local government entities, high net worth investors, and institutional investment funds. 12- 6(K) alr Stone & Youngberg maintains its l t 5M headquarters in San Francisco and operates = 1 * ` °W1 „9 eight additional offices. In addition to our 3110 IEft� i ��l f6 �� 255 other California offices in Los Angeles and 3 ,"I 20B , i San Diego, the firm has recently expanded to Phoenix, Richmond, New York, Annapolis, B and Chicago. The firm currently has S YoongbeM UBS Finanaisl Seni Cnignmp Plpet Jaffray RBC Capitol Market, approximately 222 employees nationwide n Aw tN ad5 n„ with 175 individuals based in California. STONE&YOUNGBERG'S UNDERWAIT.ING ACTIVITY In 2005, Stone & Youngberg underwrote $3.45 billion of securities for 185 separate issues, as sole, lead, or co-managing underwriter. With 798 long-term, managed underwritings for California local agencies over the past 5 years, representing$15.3 billion, Stone&Youngberg has underwritten more long-term California local government financings than any other firm. The chart above depicts the firm's California bond underwriting leadership. W, TER,AND ATASTF..V;-ATER EXPERIENCE During the difficult years of the 1930's, Stone&Yottlioerg Water&Sewer Experience Stone & Youngberg assumed a key role in Califomia Long-Term Local Municipal Issues Negodmed and Competitive lasuea 2001-2005 assisting irrigation districts restructure their Top 5 Managing U^denrriten debt and maintain solvency. Over seventy- RankedbyNumberofl.— five years later, California water enterprise _______ 80 stone 8 vonngberg undeawron$1.33 billion revenue finance continues to represent a key a 64 of water and aewerieaun be—s 2001-2005 element of Stone & Youngberg's business , , plan. Our enterprise finance experience G11 F, includes efforts for both water and o �F wastewater utilities, which are similar ingt, Fa€11 terms of financing structure ratings 22 considerations and marketing. Over the past 2t, FEi is five ears Stone &Youngberg has structured ,Y g g 54 and underwritten 69 separatel3�3. €£��, '�3 ,,7 Ez@i- � 3 a , �.:.y water/wastewater issues for local California CiogmuP St IYnuagb" U11SFwr WS-- sl^, B,o°L.R Bnr„f ,m.,,- utilities. These financings represent a dollar uR.c 71—n r,�nce.w volume of$1.33 billion. Page 7 In California alone,over the past several years,Stone&Youngberg has executed enterprise financings for the areas served by the cities of Brea, Clovis, Covina, Culver City, Escondido, Fairfield, Los Angeles, Oxnard, Richmond, Sacramento, Santa Paula, Stockton, and Westminster and the Amador County Water Authority, the Castaic Lake Water Agency,Cucamonga County Water District,Goleta Water District,Rancho California Water District,and the San Jose-Santa Clara Clean Water Financing Authority. The firm is currently engaged on water or sewer financings for the cities of Dixon,Hollister,and Richmond,among others. A listing of our water and wastewater underwriting experience since 2001 is included in Appendix C. LEASE REV,E U /CEwrIF^ICAXES OF PARTICIPATION EXPERIENCE Califomis Lang-Term Local Municipal Iseues Negotiated and Competitive I—,2001-2MS Tnp 5 Managing Underntimn Stone & Youngberg was one of the first Ranked by Nmnbet o(l.— investment banks in California to underwrite StoneB Youngberg ondet 7. financings in the form of certificates of I*1 i1.096 on of Cope be weep 2001-2005 participation, thereby opening up this well- 120 125 ,20 117 established form of capital financing to a largeE si 1 network of investors. Stone & Youngberg s`��" '9 underwrote approximately 117 issues totalingAW nearly $1.69 billion during the 2001-200562 v'`� period. As a result,Stone&Youngberg ranks €�� ii � � among the top bracket firms in this area ofygg ;1 municipal finance. The chart at right shows ° p a�l d p the top five underwriters of certificates of 1 ngroup 1'Bs Fnoal semces Yuurgb g RB('fapinl Jfatkets B f 1 mca participation from 2001-2005 ranked by the number of issues underwritten. A listing of our lease revenue/certificates of participation underwriting experience since 2001 is included in Appendix D. MARKETING OF 2006 COPs As the leading underwriter of California bonds, Stone &Youngberg can provide the District with access to a large and knowledgeable investor community. Stone &Youngberg is a well-known name to all the leading institutional investors and thousands of retail investors who appreciate the higher level of service a municipal bond specialist can provide. Stone & Youngberg's investor clients include all of the major institutional buyers of California municipal bonds, including bond funds, corporations, bank trust department, casualty insurance companies and others both within and outside of California. Our 42 institutional sales professionals cover a diverse list of investor clients ranging from the traditional large institutional investors to hedge funds and "second tier" middle- market investors often under-served by other firms. We take the development and maintenance of our institutional investor base seriously,hosting an annual investor conference at San Francisco's Ferry Building. Stone&Youngberg balances its institutional distribution network with a robust pool of retail investors. The firm has 43 sales professionals dedicated to distributing local municipal bonds to retail investors. Our significant retail sales force reaches approximately 15,000 individual investors,controlling billion of dollars in assets. The majority of these buyers are Californians with first-hand knowledge of the projects served by our issuer clients. Stone & Youngberg's retail clients are not casual bond buyers — rather, they are serious municipal bond investors whose average trade is over$100,000. As a California-based and West coast-focused firm, both Stone &Youngberg's sales force and investor base are largely familiar with the Tahoe area market. Many own property and/or vacation in the Tahoe area Page 8 making them quite familiar with the local market. We would leverage this familiarity to cultivate investors among those most familiar with the credit strengths of the community, garnering a lower cost of funds for the District. For example, in marketing bonds for the South Tahoe Redevelopment Agency and the City of Reno, we have found strong interest among investors living in Incline Village, Reno and other parts of the Tahoe area. PRICING AND UNDERWRITING Stone & Youngberg believes that transparency of the pricing process is extremely important. To provide greater openness to our clients,the firm created an online "Real-time Order Flow Monitor Screen" to offer an issuer the ability to observe its underwriting as it is happening. Issuers can access the Order Flow Monitor on the day of pricing from any computer with internet access with a special password to see the orders being submitted for its bonds. The tool provides issuers with an increased awareness about the progress of a pricing. It serves to validate situations where interest rates can be lowered due to over-subscription and where interest rates may need to be raised to promote orders. Provided below is a snapshot of this tool used on a recent water financing. $23,245,000 Amador Water Agency Amador Water System Revenue Certificates of Participation,2006 Series A State of CA Stone&Youngberg LLC �._ Amador Water System Revenue Certificates of Particlpa4on,2006 Serles A 3/21/2006 31 �y`{ Q21�R`;. 03/22J2006 zr!R01 �ISIR�)1• Yes No , �x�It Af @PP Yes S 3iA ) AWT No orr ck,Harrington&Sutcliffe 3. J1 ,. Semi-Annually �af� " 6/1/2006 k11t142MiE'+ia�- P• ': .,g''. 3121/2006(Est) "t We wP�'': MBIA a{It6r .3 @ Book Entry a �I(F1T6t� /A- i}.,r B 611/zo16 @ 100 Inan 46�E d� Subject to Mandatory Prepayment > r�7l IPik S ': ilibw YBA s f at 4k11N s 3 (y E e' B♦`3FifR�Cf€t€ €9 9A32iME`B ,<<,P E - r. �,E., itli. s 4.009 3.350 /..., 150, B•...., r _ lA 6(1/2e le - 4 4.e0 3. 0 3 SIB 1.04x 60 6/f/2e1/ I05 BS 4.006 3.32320 I 25 fx. 460 6/1/2e 12 SBS _ 4.Oe0 3.620. 1 23 Bx..... 409 0/1/2e 13.. 525 4.00e 3.100 1 490 33 6/1/2e 14 42e SSe 4.eee 3.110 1... 13e Oz... 6/1/2615 574 4. 3000 3.050 f. 30 -.. Bx 320 66e 4.006 10 1 125 ex 4 6/1/2B li S 63 _ (1/2B 1] 613 4.04111 4.020 0. .. 0 •:.. 615 ./1/201e 640 4.Oee 4.0t0 • B Bx... 6N 0J1/2010 f65 4.00f 4.150 6/1/2020 605 4.000 4.200 f/1/2021 720 4.123 0.210 B(1/2f22 ]50 4.208 4.320 8... B 0x. )S0 f(1/2823 780 4.125 0.3]0 0.... 5/1/202] 3i305 5.age 4.400 1.. 2,500 0x.... I.001 6/1/2832 S.NS S.Nf 4.SB0 2... 16,530 2.94x 6/1/2036 5,44e 3.00e 4.620 4 21,760 4.06x T tab 23,245 17.. 36.6e5 .. 0,373 4. Pro%,ide a list of the indi idw is xho dill be assigned to work w itli the Distl-lct. Describe the role of each indiVidcial and inchide the telcphone and facsimile member of each tnember of the primary banking te.atn, Include,a brief resLime of each indiN-Mktal's education, training and experience. FINANCING TEAM Stone & Youngberg will assign a team of professionals to the District's proposed financing. The team will include John Muus, a Managing Director in New York, Eileen Gallagher, a Director in San Francisco, and Steve Heaney, a Managing Director in Los Angeles. The team will be assisted by Un Chu Yi, an associate in San Francisco. Joel Silva,the firm's lead underwriter,will provide information on conditions in the municipal Page 9 markets and will direct the underwriting for the District. He will be assisted by an experienced team of institutional and retail sales people. Brief biographies of key financing team members,including their contact information,are provided below. _.-...... _........__-......__._._.......- .-........---........ ---....... ..__........_...-..... ------- _------ - John E.Muus 212/497-7114 Managing Director FAX 212/497-8107 450 Lexington Avenue,Suite 3750,New York,NY 10017 _.-_..._.............-_...---........_...-.......- --- _------._-------__,._.....__._._._.....__..._-------- _,_..-----------.--- t-rniu<fu':e:°ilcec,n: Mr. Muus joined Stone & Youngberg in January 2006 to open the firm's New York investment banking practice. He is an expert in municipal utility finance and has experience working with municipal utilities throughout the country. He was formerly a Senior Managing Director of Sutter Securities Inc in New York where he specialized in corporate and municipal utility mergers and acquisitions related specifically to water utilities, Manager of the Corporate Utility and Municipal Utility of A.G. Edwards in New York as well as the firm's Northeast Manager of Investment Banking and Managing Director and Manager of the Municipal Utility Group at PaineWebber(UBS) at its world headquarters in New York City. Mr. Muus has extensive experience with California Utility issuers, including such major issuers as SMUD, SCPPA, LADWP, M-S-R, Santa Clara, the Modesto Irrigation District, TANC, the Imperial Irrigation District and NCPA. In the area of municipal utility water finance, Mr. Muus is an expert on asset valuations and divestitures. He is currently engaged in several transactions in the analysis and structuring of the acquisition of private water assets by government entities through the issuance of tax-exempt municipal bonds. Mr. Muus is formerly a Bergen County Utilities Authority (BCUA) Commissioner; a government owned wastewater utility system in northern New Jersey. Bergen County is one of few "AAA" rated counties in the United States. The BCUA serves 42 cities, roughly 800,000 residents and has an annual operating budget of over $300 million. As a Chairman of the Finance and Legal Committee, Mr. Muus was responsible for several large financial transactions. He was able gain a unique perspective on the issues facing government owned utilities in financing and constructing municipal water facilities. Mr. Muus holds an MBA in Corporate Finance and an M.S. in Urban Planning from Columbia University. He has a professional Bachelor of Architecture degree from North Dakota State University, with high honors, where he was also an Instructor in Architecture from 1973-1974. He served as US Peace Corps Architect in North Africa and has served on several charitable and private boards. .......... ...... _. . ......... .................._... _ _ .............. _........__....__............._........._...__.........__...__........ Eileen Gallagher 415/445-2311 Director FAX 415/445-2395 One Ferry Building,Suite 275,San Francisco,CA 94111 Eileen Gallagher brings over 8 years of investment banking experience working with public sector issuers on their financing needs. Her experience has encompassed community facility district, assessment district, tax increment, enterprise revenue and general government finance across a wide spectrum of credit quality. Ms. Gallagher has structured enterprise financings for the San Jose-Santa Clara Clean Water Financing Authority, the City of Los Angeles'Wastewater System,and the City of Sonoma. She is currently working with the City of Hollister and Dixon on major wastewater system financings. She has also been involved on multiple series of California Department of Water Resources Central Valley Project Water System Revenue Bonds and in the development of the California Infrastructure and Economic Development Bank's Infrastructure Revolving Fund (IRF) program and inaugural bond issuance. Her Tahoe-area clients have included the Town of Truckee, the Cities of Reno and Sparks,Washoe County and the South Tahoe Redevelopment Agency. Before joining the firm in 1998,Ms. Gallagher had prior experience in both the public and private sector. For five years, she drafted legislation and policy on federal housing,transportation and infrastructure programs as a staff member to the U.S. Senate Banking, Housing and Urban Affairs Committee. She also worked at the U.S. Treasury Department and with Goldman Sachs's Municipal Finance group in New York Ms. Gallagher Page 10 ........._....__............__..._._......_..---------—..._._____...____._...._._......—__.__----....____..._.___-_.__....___.__...._.___...__...._._...._......__._..._........__._...._........__._.._..._.._._._.___..___..._._..___._......._ currently serves on the Boards of Directors of the Tenderloin Neighborhood Development Corporation,a non- profit housing provider,and City Carshare,a car-sharing cooperative in the Bay Area. Ms. Gallagher earned a Bachelor of Arts in cognitive science from Brown University and an M.B.A. in finance and marketing from Northwestern University's Kellogg Graduate School of Management _...._...- ...........—._.............—._............._.__._.......—............._......._.___......._.......—.............---....._....._..._............. ------_—._....__._._...._-- ..._._..—_.....__—.._..____._._...._—. -_---------- Stephen E. Heaney 213/443-5001 Managing Director FAX 213/443-5023 515 South Figueroa Street,Suite 1060,Los Angeles,CA 90071 s=inane u;st......coin Mr. Heaney is the Head of the Public Finance Group and is a member of the four-person Executive Committee that oversees the operation and direction of the firm. He has over 27 years of experience in the field of municipal finance. He has served as lead banker for several billion dollars in public offerings including water and sewer revenue, tax allocation, city and county lease, school district, industrial development, special tax and assessment bonds. Mr.Heaney has served as the primary banker for Stone&Youngberg in Nevada since 1989. As team leader, Mr. Heaney has structured and guided utility financings for clients including the Cities of Oxnard, Victorville, Rialto and special districts including Eastern Municipal Water District, Moulton Niguel Water District and the Murrieta County Water District. Mr. Heaney is a former Chairman of the California Public Securities Association and serves on the Municipal Legal Advisory Committee of the Bond Market Association, as well as the board of the California City Management Foundation. He received a B.A. degree from Texas Tech University and his M.A. in public administration f_111-1-11111rom Syracuse University._1111-11111-1 11 __...__........__..................._................__...__.......__........_....._---......_.....---................._._.................._--...........—._.................. ---.._..---........ _.._..._.__..............-----------.... -- — Un Chu Yi 415/445-2394 Associate FAX 415/445-2395 Role:Support Banker One Ferry Building,Suite 275,San Francisco,CA 94111 rri;.,,'ilc.com —. _.........._.. .........^............._._._._._........__......._..._A._..._.......... _...._...__...._............_..._._...... -....__....._._._—........__.—.__...._....____..—...._.. -- — ��--...._ Un Chu Yi has provided financial analysis and technical support on a range of financings for clients including the City of Riverside, City of Sacramento, City of Salinas, City of Santa Fe Springs, Garvey School District,and Hillsborough City School District. Prior to joining the public finance group in 2003,Ms.Yi worked closely with Stone&Youngberg's institutional sales force since 1998. Ms.Yi earned a Bachelor of Arts from the University of Washington. _. .._.—............._.............._.......... .—................_........... _............_. . ....._....._ ..... ......_........................ _..._.. Joel Silva 415/445-2375 Managing Director FAX 415/397-9592 Role:Remarketing&Underwriting One Ferry Building,Suite 275,San Francisco,CA 94111 Joel Silva joined Stone & Youngberg as a municipal trader in 2000. Since that time, he has taken over responsibility for many of the firm's primary market underwritings as well as remarketing the firm's portfolio of variable rate financings. Previously,Mr.Silva was a vice president and portfolio manager with American Century Investments,where he managed both California and national bond funds for ten years. In 1999,he joined The Northern Trust Bank in Chicago as a vice president and portfolio manager where he managed national bond funds and separate account investments for high net worth individuals. Mr. Silva received a bachelor's degree in finance from California Polytechnic University and a master's degree from Hayward State University. Page 11 5. Provide a fee qU<xe that: ir7dudes all cxOmi)oi7etlt:s of tl)c ;dross spread. Indicate what of the quote rnav be considered fixed. Assume that the Financial U-isor has developed a financial pro-forma and will, take the, lead in preparing the District's rating presentation. In estirnating undcmrixc:r's counsel expenses,note that Stndling�'occ:a will dratt the prelirnin�Ar and final official statements. lndicstte whicl3 firm t-ou wmild consider using for underwriter's counsel. FEE PROPOSAL. Stone&Youngberg's compensation is taken in the form of an underwriting discount and is largely a function of the structure,size and credit quality of the issue, and the volatility of the capital markets. Our underwriting fees consist of three components: (1) a management fee, (2) a sales commission/takedown,and (3) expenses. Management Fee. The management fee compensates us for the banking work needed to structure the transaction, guide the preparation of the legal documents, and conduct financial and options analysis. This component depends more on the complexity of the structure and the demand on our time for documents/credit review than on the size of the borrowing. Recognizing that the District's financial advisor would be preparing financial pro forma and the credit presentation,we propose a management fee of$25,000 for a long-term,insured financing that would close by year-end. Takedown: The largest component of our discount is the takedown,which compensates our sales force for selling the bonds. An institutional sale can be accomplished with a relatively low sales credit to cover the relatively limited universe of institutional investors. However, the District benefits when the scope of prospective buyers is increased to include individual ("retail") investors. Retail investors enable a larger portion of the bond issue to be serialized,taking advantage of the lower rates available in the early and middle maturities of the yield curve. Retail investors also often have less price sensitivity and a greater variety of purchasing interests. A retail sale may require a larger takedown to compensate for the extra effort involved in calling on many individual investors who buy smaller quantities of bonds. This higher takedown expense would be more than offset by the lower interest rates attainable with significant retail participation. We propose an average takedown of$3.50 per$1,000 of bonds for an insured transaction. Expenses: The bulk of our expenses are regulatory fees charged as a percentage of par, travel expenses and conference calls. An itemized estimate of expenses based on an assumed par amount of $25 million is presented below. We do not expect our expenses to exceed$12,000 for the proposed transaction. Detailed Expenses for a$25 million financing CUSIP Fees($165 +$14 per additional CUSIPs) $ 305 BMA Fees (.03 per$1,000) 750 Cal PSA Fees(.01 per$1,000) 250 CDIAC(.15 per$1,000 of bonds or$3,000 cap) 3,000 DTC Fee 337 Day Loan 694 Handling fee 1,750 Blue Sky fees 500 Internet posting of Official Statement 500 Conference calls,delivery and copies(estimate) 750 Travel&Expense estimate 1,500 Total $10,336 Summary.• Taken together,this proposal represents an all-in underwriter's discount of$4.91 per$1,000 for a $25 million financing. We believe this to be competitive and fair given the information we have gathered Page 12 regarding the project. However,we are eager to work on this financing and would be willing to discuss this proposal further,as necessary. Amount $Per$1,000 Average Takedown $87,500 $3.50 Management Fee 25,000 1.00 Underwriter's Counsel 0 0.00 Expenses 10,336 0.41 $122,836 $4.91 UNDERWRITER'S COUNSEL We would not plan to retain underwriter's counsel if Stradling, Yoca, Carlson & Rauth, as the District's disclosure counsel, is willing to give an undiluted "10(b)(5) opinion" with respect to the disclosure documents. Otherwise, we would anticipate an additional expense of approximately $10,000-$15,000 for underwriter's counsel fees to provide this opinion. If we were to hire an underwriter's counsel, we would likely use Eric Tashman or Stepan Haytayan of Sidley Austin LLP. 6. \Flit should TDP UD select your firt-n to senior sir n ige the proposed trap.sac tic)n? VALUL ADDED SERVICES We believe that Truckee-Donner PUD should select Stone & Youngberg to senior manage the proposed transaction for several important reasons. This financing has many unique characteristics that are particularly suited to our expertise. Stone & Youngberg12rovides top tier expertise with a small firm touch. Stone & Youngberg has more experience in senior managing municipal bonds for local government entities than any other investment banking firm in California. We have developed this market position not through a small handful of large transactions but through hundreds of financings for issuers large and small throughout the state. While the District's proposed $27 million financing is relatively small by today's market standards, it is right in the "sweet spot"of Stone&Youngberg's business model. Though larger firms will respond professionally to the needs of small issuers, their focus needs to be on transactions exceeding $100 million in par value. Consequently, as larger deals come into the market, larger firms are forced to redirect their capital and personnel toward these issues. Stone&Youngberg's lean organization structure enables us to serve small and mid-sized issuers efficiently and effectively. We dedicate our most experienced personnel to issues like the District's. S&Y has been able to succeed in these continually changing California markets for over 75 years by focusing on the needs and unique characteristics of the communities that we serve. Stone & Youngberg brings extensive local market knowledge. The District's service area encompasses a unique localized economy based to a large extent on tourism, recreation and part-time residents. Our banking and sales staff are very familiar with the Truckee area — both through professional experience underwriting transactions for other Tahoe-area communities and personal experience vacationing in the area. Our Truckee-based institutional salesman, Todd Huckins, brings direct knowledge as a long-time municipal market professional, a local resident, and a customer of the District. Further, many of our firm's retail investors are Californians with first-hand familiarity with the particulars of distinct communities around the state. Stone & Youngberg offers expertise in utility asset valuation divestiture and acquisitions. As a growing dynamic utility, the District might want to engage new concepts or seek to generate economies of scale through asset acquisition (like the Donner Lake system acquisition.) Stone&Youngberg is uniquely qualified to serve the District in the specialized areas of asset valuation, divestiture and acquisition. We recently Page 13 completed a water utility acquisition in the west and are under engagement for several others in other regions of the country. Although we are not aware of any plans for District system expansion, many municipal entities are attempting to grow customer bases using non traditional methods and acquisitions. These efforts are designed to promote system growth without raising user rates. Several factors are contributing to making water system acquisitions possible, including high equity valuations on privately-owned water utility assets, very low historical interest rates making leveraged transactions more economical, the financial impact of homeland security regulatory issues and the costs of increased compliance requirements imposed by "Sarbanes-Oxley." Our investment-banking staff has considerable experience in traditional utility sector finance and experience in the expanding area of water utility asset valuation and divestiture. We believe that our expertise will serve the District in the current financing efforts and create a platform to explore other financial opportunities in the future. Stone & Youngberg has a long-term commitment to this sector. Stone & Youngberg prides itself on continuity of coverage. We were formed in 1931 to help water districts in the Central Valley to restructure their debt obligations following the Great Depression. We are still serving many of these same issuers today. Our investment banking staff has worked with many separate utility systems for communities in Northern California as well as state agencies involved in utility finance. We believe that the our firm's institutional knowledge of the Tahoe region, our work with other communities in the area and our commitment to the utilities in Northern California over many years will contribute to a seamless transaction for Truckee-Donner PUD. Page 14 APPENDIX A Preliminary Bond Sizing and Refunding Analyses Page A-1 SOURCES AND USES OF FUNDS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Tenn of 2036 Aggregate Level Debt Service Dated Date 09/28/2006 Delivery Date 09/28/2006 Sources: Bond Proceeds: Par Amount 23,620,000.00 Net Premium 362,937.95 23,982,937.95 Other Sources of Funds: 1996.Reserve Fund 808,470.00 11-15-06 Interest payment 455,242.50 1,263,712.50 25,246,650.45 Uses: Project Fund Deposits: Project Fund 12,300,000.00 Donner Lake Completion&Loan Take-out 1,479,272.00 Equipment Fund 580,000.00 14,359,272.00 Refunding Escrow Deposits: SLG Purchases 8,800,998.00 Other Fund Deposits: Debt Service Reserve Fund 1,672,670.00 Delivery Date Expenses: Cost of Issuance 150,000.00 Underwriter's Discount 118,100.00 Bond Insurance at 30 bps 140,729.15 408,829.15 Other Uses of Funds: Rounding Amount 4,881.30 25,246,650.45 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 1 BOND SUMMARY STATISTICS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Tenn of 2036 Aggregate Level Debt Service Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Last Maturity 11/15/2036 Arbitrage Yield 4.705949% True Interest Cost(TIC) 4.780300% Net Interest Cost(NIC) 4.795983% All-In TIC 4.831410% Average Coupon 4.846938% Average Life(years) 20.343 Duration of Issue(years) 12.650 Paz Amount 23,620,000.00 Bond Proceeds 23,982,937.95 Total Interest 23,289,716.08 Net Interest 23,044,878.13 Total Debt Service 46,909,716.08 Maximum Annual Debt Service 1,672,670.00 Average Annual Debt Service 1,556,881.88 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 2 SUMMARY OF REFUNDING RESULTS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Term of 2036 Aggregate Level Debt Service Dated Date 09/28/2006 Delivery Date 09/29/2006 Arbitrage yield 4.705949% Escrow yield 4.7058160/a Bond Par Amount 8,125,000.00 True Interest Cost 4.751586% Net Interest Cost 4.772540% All-In TIC 4.804704% Average Coupon 4.831140% Average Life 19.290 Par amount of refunded bonds 8,465,000.00 Average coupon of refunded bonds 5.414254% Average life of refunded bonds 8.719 PV of prior debt to 09/28/2006 @ 4.705949% 9,037,525.24 Net PV Savings 140,205.60 Percentage savings of refunded bonds 1.656298% Percentage savings of refunding bonds 1.725607% Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC.(UY) (Truckee Donner PUD:2006COPS) Page 3 'SAVINGS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System *rr**r**+e**r*r******r**r****rr*****r*****srrrrrr*****r*r AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Term of 2036 Aggregate Level Debt Service Present Value Prior Refunding to 09/28/2006 Date Debt Service Debt Service Savings @ 4.7059492% 11/15/2006 577,621.25 - 577,621.25 574,124.15 11/15/2007 806,867.50 433,476.20 373,391.30 353,742.20 11/15/2008 803,182.50 513,418.76 299,763.74 262,795.17 11/15/2009 803,355.00 512,568.76 290,786.24 251,593.13 11/15/2010 807,092.50 511,493.76 295,598.74 243,982.26 11/15/2011 799,302.50 515,193.76 284,108.74 223,690.04 11/15/2012 805,495.00 528,443.76 277,051.24 208,066.13 11/15/2013 804,845.00 530,793.76 274,051.24 196,304.54 11/15/2014 802,345.00 527,693.76 274,651.24 187,637.36 11/15/2015 808,470.00 529,368.76 279,101.24 181,861.43 11/15/2016 807,670.00 530,593.76 277,076.24 172,170.14 11/15/2017 805,220.00 532,393.76 272,826.24 161,642.69 11/15/2018 801,740.00 533,793.76 267,946.24 151,353.99 11/15/2019 806,640.00 524,793.76 281,846.24 151,855.20 I1/15/2020 804,380.00 525,343.76 279,036.24 143,327.63 11/15/2021 785,230.00 530,356.26 254,873.74 124,690.40 11/15/2022 - 524,606.26 (524,606.26) (249,229.28) 11/15/2023 - 533,450.00 (533,450.00) (241,829.27) 11/15/2024 - 526,350.00 (526,350.00) (227,722.13) 11/15/2025 - 528,750.00 (528,750.00) (218,297.19) 11/15/2026 - 524,000.00 (524,000.00) (206,445.48) 11/15/2027 - 523,750.00 (523,750.00) (196,902.01) 11/15/2028 - 527,750.00 (527,750.00) (189,314.63) 11/15/2029 - 525,750.00 (525,750.00) (179,960.26) 11/I5/2030 - 528,000.00 (528,000.00) (172,445.60) 11/15/2031 - 524,250.00 (524,250.00) (163,374.44) 11/15/2032 - 529,750.00 (529,750.00) (157,512.34) 11/15/2033 - 529,000.00 (529,000.00) (150,072.11) 11/15/2034 - 532,250.00 (532,250.00) (144,060.56) 11/15/2035 - 529,250.00 (529,250.00) (136,669.48) 11/15/2036 - 530,250.00 (530,250.00) (130,634.67) 12,629,456.25 15,696,882.60 (3,067,426.35) 824,367.03 Savings Summary Dated Date 09/28/2006 Delivery Date 09/28/2006 PV of savings from cash flow 824,367.03 Less:Prior funds on hand (1,263,712.50) Plus:Refunding funds on hand 579,551.07 Net PV Savings 140,205.60 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 4 SUMMARY OF BONDS REFUNDED Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Tern of 2036 Aggregate Level Debt Service Maturity Interest Par Call Call Bond Date Rate Amount Date Price $10.905 mil,Rfdg COPS,Series 1996, 1996COPS: SERIAL 11/15/2006 5.250% 350,000.00 - - 11/15/2007 5.050% 370,000.00 11/15/2006 102.000 11/15/2008 5.150% 385,000.00 11/15/2006 102.000 11/15/2009 5.250% 405,000.00 11/15/2006 102.000 11/15/2010 5.300% 430,000.00 11/15/2006 102.000 11/15/2011 5.350% 445,000.00 11/15/2006 102.000 11/15/2012 5.400% 475,000.00 11/15/2006 102.000 TERM16 11/15/2013 5.500% 500,000.00 11/15/2006 102.000 11/15/2014 5.500% 525,000.00 11/15/2006 102.000 11/15/2015 5.500% 560,000.00 11/15/2006 102.000 11/15/2016 5.500% 590,000.00 11/15/2006 102.000 TERM21 11/15/2017 5.4000/a 620,000.00 11/15/2006 102.000 11/15/2018 5.400% 650,000.00 11/15/2006 102.000 11/15/2019 5.400% 690,000.00 11/15/2006 102.000 11/15/2020 5.400% 725,000.00 11/15/2006 102.000 11/15/2021 5.400% 745,000.00 11/15/2006 102.000 8,465,000.00 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 5 BOND PRICING Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Term of 2036 Aggregate Level Debt Service Maturity Call Call Bond Component Date Amount Rate Yield Price Date Price Serial Bond: 11/15/2007 110,000 4.500% 3.580% 101.006 - - 11/15/2008 250,000 4.500%. 3.600% 101.826 - - 11/15/2009 260,000 4.5000/6 3.650% 102.489 - - 11/15/2010 270,000 4.500% 3.700% 103.034 - - 11/15/2011 285,000 4.500% 3.730% 103.561 - - 11/15/2012 295,000 4.500% 3.780% 103.903 - - 11/15/2013 310,000 4.500% 3.850% 104.015 - - 11/15/2014 325,000 4.500% 3.900% 104.142 - - 11/15/2015 335,000 4.500% 3.980% 103.944 - - 11/15/2016 350,000 4.000% 4.050% 99.584 - - 11/15/2017 520,000 4.000% 4.120% 98.933 - - 11/15/2018 695,000 4.000% 4.2400/6 97.738 - - 11/15/2019 720,000 4.200% 4.340% 98.605 - - 11/15/2020 750,000 4.250% 4.420% 98.222 - - 11/15/2021 785,000 4.3000/6 4.470% 98.140 - - 11/15/2022 815,000 4.375% 4.520% 98.347 - - 11/15/2023 855,000 4.400% 4.570% 97.990 - - 11/15/2024 890,000 4.500% 4.620% 98.532 - - 8,820,000 Term Bond due 2030: 11/15/2025 930,000 5.000% 4.650°/a 102.796 C 11/15/2016 100.000 11/15/2026 975,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2027 1,025,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2028 1,075,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2029 1,130,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2030 1,185,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 6,320,000 Term Bond due 2036: 11/15/2031 1,245,000 5.00001a 4.690% 102.471 C 11/15/2016 100.000 11/15/2032 1,310,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2033 1,375,000 5.000% 4.6900/6 102.471 C 11/15/2016 100.000 11/15/2034 1,445,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2035 1,515,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2036 1,590,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 8,480,000 23,620,000 Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 6 BOND DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Term of 2036 Aggregate Level Debt Service Dated Date 09/28/2006 Delivery Date 09/28/2006 Period Ending Principal Interest Debt Service 11/15/2006 - - 11/15/2007 110,000 1,268,026.88 1,378,026.88 11/15/2008 250,000 1,116,646.28 1,366,646.28 11/15/2009 260,000 1,105,396.28 1,365,396.28 11/15/2010 270,000 1,093,696.28 1,363,696.28 11/15/2011 285,000 1,081,546.28 1,366,546.28 11/15/2012 295,000 1,068,721.28 1,363,721.28 11/15/2013 310,000 1,055,446.28 1,365,446.28 11/15/2014 325,000 1,041,496.28 1,366,496.28 11/15/2015 335,000 1,026,871.28 1,361,871.28 11/15/2016 350,000 1,011,796.28 1,361,796.28 11/15/2017 520,000 997,796.28 1,517,796.28 11/15/2018 695,000 976,996.28 1,671,996.28 11/15/2019 720,000 949,196.28 1,669,196.28 11/15/2020 750,000 918,956.28 1,668,956.28 11/15/2021 785,000 887,081.28 1,672,081.28 11/15/2022 815,000 853,326.28 1,668,326.28 11/15/2023 855,000 817,670.00 1,672,670.00 11/15/2024 890,000 780,050.00 1,670,050.00 11/15/2025 930,000 740,000.00 1,670,000.00 11/15/2026 975,000 693,500.00 1,668,500.00 11/15/2027 1,025,000 644,750.00 1,669,750.00 11/15/2028 1,075,000 593,500.00 1,668,500.00 11/15/2029 1,130,000 539,750.00 1,669,750.00 11/15/2030 1,185,000 483,250.00 1,668,250.00 11/15/2031 1,245,000 424,000.00 1,669,000.00 11/15/2032 1,310,000 361,750.00 1,671,750.00 11/15/2033 1,375,000 296,250.00 1,671,250.00 11/15/2034 1,445,000 227,500.00 1,672,500.00 11/15/2035 1,515,000 155,250.00 1,670,250.00 11/15/2036 1,590,000 79,500.00 1,669,500.00 23,620,000 23,289,716.08 46,909,716.08 Aug 7,2006 4:I I pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 7 AGGREGATE DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Extended Term of 2036 Aggregate Level Debt Service 2006 Current Donner Lake Refunding of Completion& Period 1996 Water Construction Internal Loan Aggregate Ending COPS Fund Take-out Equipment Fund SRF Loan Debt Service 11/I5/2006 - - - - 306,437 306,437.00 11/15/2007 433,476.20 717,406.75 85,601.43 141,542.50 306,437 1,684,463.88 11/I5/2008 513,418.76 634,561.26 75,716.26 142,950.00 306,437 1,673,083.28 11/15/2009 512,568,76 634,561.26 75,716.26 142,550.00 306,437 1,671,833.28 11/15/2010 511,493.76 634,561.26 75,716.26 141,925.00 306,437 1,670,133.28 11/15/2011 515,193.76 634,561.26 75,716.26 141,075.00 306,437 1,672,983.28 11/15/2012 528,443.76 724,561.26 110,716.26 - 306,437 1,670,158.28 11/15/2013 530,793.76 720,511.26 114,141.26 - 306,437 1,671,883.28 11/15/2014 527,693.76 726,461.26 112,341.26 - 306,437 1,672,933.28 11/15/2015 529,368.76 721,961.26 110,541.26 - 306,437 1,668,308.28 11/15/2016 530,593.76 717,461.26 113,741.26 - 306,437 1,668,233.28 11/15/2017 532,393.76 873,461.26 111,941.26 - 153,218 1,671,014.28 11/15/2018 533,793.76 1,028,061.26 110,141.26 - - 1,671,996.28 11/15/2019 524,793.76 1,031,061.26 113,341.26 - - 1,669,196.28 11/15/2020 525,343.76 1,032,371.26 111,241.26 - - 1,668,956.28 11/15/2021 530,356.26 1,027,608.76 114,116.26 - - 1,672,081.28 11/15/2022 524,606.26 1,031,968.76 111,751.26 - - 1,668,326.28 11/15/2023 533,450.00 1,029,875.00 109,345.00 - - 1,672,670.00 11/15/2024 526,350.00 1,026,775.00 116,925.00 - - 1,670,050.00 11/15/2025 528,750.00 1,027,250.00 114,000.00 - - 1,670,000.00 11/15/2026 524,000.00 1,033,750.00 110,750.00 - - 1,668,500.00 11/15/2027 523,750.00 1,043,500.00 102,500.00 - - 1,669,750.00 11/15/2028 527,750.00 1,026,250.00 114,500.00 - - 1,668,500.00 11/15/2029 525,750.00 1,033,250.00 110,750.00 - - 1,669,750.00 11/15/2030 528,000.00 1,033,250.00 107,000.00 - - 1,668,250.00 11/15/2031 524,250.00 1,036,500.00 108,250.00 - - 1,669,000.00 11/15/2032 529,750.00 1,027,750.00 114,250.00 - - 1,671,750.00 11/15/2033 529,000.00 1,027,500.00 114,750.00 - - 1,671,250.00 11/15/2034 532,250.00 1,030,250.00 110,000.00 - - 1,672,500.00 11/15/2035 529,250.00 1,030,750.00 110,250.00 - - 1,670,250.00 11/15/2036 530,250.00 1,029,000.00 110,250.00 - - 1,669,500.00 15,696,882.60 27,326,790.65 3,176,000.33 710,042.50 3,524,025 50,433,741.08 Aug 7,2006 4:11 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 8 SOURCES AND USES OF FUNDS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System ######################################################## AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Sources: Bond Proceeds: Par Amount 23,630,000.00 Net Premium 337,313.75 23,967,313.75 Other Sources of Funds: 1996 Reserve Fund 808,470.00 11-15-06 Interest payment 455,242.50 1,263,712.50 25,231,026.25 Uses: Project Fund Deposits: Project Fund 12,300,000.00 Donner Lake Completion&Loan Take-out 1,479,272.00 Equipment Fund 580,000.00 14,359,272.00 Refunding Escrow Deposits: SLG Purchases 8,802,816.00 Other Fund Deposits: Debt Service Reserve Fund 1,677,851.39 Delivery Date Expenses: Cost of Issuance 150,000.00 Underwriter's Discount 118,150.00 Bond Insurance at 30 bps 121,331.03 389,481.03 Other Uses of Funds: Rounding Amount 1,605.83 25,231,026.25 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 1 BOND SUMMARY STATISTICS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Last Maturity 11/15/2036 Arbitrage Yield 4.535263% True Interest Cost(TIC) 4.624173% Net Interest Cost(NIC) 4.650797% All-In TIC 4.687668% Average Coupon 4.712221% Average Life(years) 15.100 Duration of Issue(years) 10.186 Par Amount 23,630,000.00 Bond Proceeds 23,967,313.75 Total Interest 16,813,675.55 Net Interest 16,594,511.80 Total Debt Service 40,443,675.55 Maximum Annual Debt Service 1,847,873.76 Average Annual Debt Service 1,342,281.11 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 2 SUMMARY OF REFUNDING RESULTS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Arbitrage yield 4.535263% Escrow yield 4.535128% Bond Par Amount 8,180,000.00 True Interest Cost 4.272487% Net Interest Cost 4.207777% All-In TIC 4.362286% Average Coupon 4.260391% Average Life 8.952 Par amount of refunded bonds 8,465,000.00 Average coupon of refunded bonds 5.414254% Average life of refunded bonds 8.719 PV of prior debt to 09/28/2006 @ 4.535263% 9,139,618.33 Net PV Savings 435,510.09 Percentage savings of refunded bonds 5.144833% Percentage savings of refunding bonds 5.324084% Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 3 SAVINGS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Present Value Prior Refunding to 09/28/2006 Date Debt Service Debt Service Savings (alp 4.5352627% 11/15/2006 577,621.25 - 577,621.25 574,249.22 11/15/2007 806,867.50 754,869.02 51,998.48 49,328.91 11/15/2008 803,182.50 752,717.50 50,465.00 46,695.60 11/15/2009 803,355.00 754,042.50 49,312.50 43,634.85 11/15/2010 807,092.50 754,467.50 52,625.00 44,457.71 11/15/2011 799,302.50 748,992.50 50,310.00 40,647.96 11/15/2012 805,495.00 757,842.50 47,652.50 36,823.74 11/15/2013 804,845.00 755,342.50 49,502.50 36,526.55 11/15/2014 802,345.00 751,942.50 50,402.50 35,517.40 11/15/2015 808,470.00 757,642.50 50,827.50 34,207.53 11/15/2016 807,670.00 756,992.50 50,677.50 32,575.04 11/15/2017 805,220.00 753,192.50 52,027.50 31,906.42 11/15/2018 801,740.00 753,592.50 48,147.50 28,196.70 11/15/2019 806,640.00 757,992.50 48,647.50 27,177.83 11/15/2020 804,380.00 754,852.50 49,527.50 26,398.01 11/15/2021 785,230.00 735,315.00 49,915.00 25,381.62 12,629,456.25 11,299,796.52 1,329,659.73 1,113,725.08 Savings Summary Dated Date 09/28/2006 Delivery Date 09/28/2006 PV of savings from cash flow 1,113,725.08 Less:Prior funds on hand (1,263,712.50) Plus:Refunding funds on hand 585,497.51 Net PV Savings 435,510.09 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 4 SUMMARY OF BONDS REFUNDED Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Tenn of 2021 Maturity Interest Par Call Call Bond Date Rate Amount Date Price $10.905 mil,Rfdg COPs,Series 1996, 1996COPS: SERIAL 11/15/2006 5.250% 350,000.00 - - 11/15/2007 5.050% 370,000.00 11/15/2006 102.000 11/15/2008 5.150% 385,000.00 11/15/2006 102.000 11/15/2009 5.250% 405,000.00 11/15/2006 102.000 11/15/2010 5.300% 430,000.00 11/15/2006 102.000 11/15/2011 5.350% 445,000.00 11/15/2006 102.000 11/15/2012 5.400% 475,000.00 11/15/2006 102.000 TERM16 11/15/2013 5.50001a 500,000.00 11/15/2006 102.000 11/15/2014 5.500% 525,000.00 11/15/2006 102.000 11/15/2015 5.500% 560,000.00 11/15/2006 102.000 11/15/2016 5.500% 590,000.00 11/15/2006 102.000 TERM21 11/15/2017 5.400% 620,000.00 11/15/2006 102.000 11/15/2018 5.400% 650,000.00 11/15/2006 102.000 11/15/2019 5.400% 690,000.00 11/15/2006 102.000 11/15/2020 5.400% 725,000.00 11/15/2006 102.006 11/15/2021 5.400% 745,000.00 11/15/2006 102.000 8,465,000.00 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 5 BOND PRICING Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Maturity Call Call Bond Component Date Amount Rate Yield Price Date Price Serial Bond: 11/15/2007 625,000 4.500% 3.580% I01.006 - - 11/15/2008 795,000 4.500% 3.600% 101.826 - 11/15/2009 830,000 4.500% 3.650% 102.489 - - 11/15/2010 865,000 4.500% 3.700% 103.034 - 11/15/2011 995,000 4.500% 3.730% 103.561 - - 11/15/2012 810,000 4.500% 3.780% 103.903 - - 11/15/2013 840,000 4.500% 3.850% 104.015 - - 11/15/2014 875,000 4.500% 3.900% 104.142 - - 11/15/2015 915,000 4.500% 3.980% 103.944 - - 11/15/2016 960,000 4.000% 4.050% 99.584 - 11/15/2017 995,000 4.000% 4.1200/a 98.933 - 11/15/2018 1,030,000 4.000% 4.240% 97.738 - - 11/15/2019 1,080,000 4.2000/a 4.340% 98.605 - 11/15/2020 1,120,000 4.250% 4.420% 98.222 - - 11/15/2021 1,150,000 4.300% 4.470% 98.140 - - 11/15/2022 465,000 4.375% 4.520% 98.347 - - 11/15/2023 480,000 4.400% 4.570% 97.990 - - 11/15/2024 505,000 4.500% 4.620% 98.532 - - 15,235,000 Term Bond due 2030: 11/15/2025 525,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2026 555,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2027 580,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2028 610,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2029 645,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2030 670,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 3,585,000 Term Bond due 2036: 11/15/2031 705,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2032 745,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2033 780,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2034 820,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2035 860,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2036 900,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 4,810,000 23,630,000 Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 6 BOND DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System ******************************************************** AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Period Ending Principal Interest Debt Service 11/15/2006 - - - 11/15/2007 625,000 1,222,129.15 1,847,129.15 11/15/2008 795,000 1,052,873.76 1,847,873.76 11/15/2009 830,000 1,017,098.76 1,847,098.76 11/15/2010 865,000 979,748.76 1,844,748.76 11/15/2011 895,000 940,823.76 1,835,823.76 11/15/2012 810,000 900,548.76 1,710,548.76 11/15/2013 840,000 864,098.76 1,704,098.76 11/15/2014 875,000 826,298.76 1,701,298.76 11/15/2015 915,000 786,923.76 1,701,923.76 11/15/2016 960,000 745,748.76 1,705,748.76. 11/15/2017 995,000 707,348.76 1,702,348.76 11/15/2018 1,030,000 667,548.76 1,697,548.76 11/15/2019 1,080,000 626,348.76 1,706,348.76 11/15/2020 1,120,000 580,988.76 1,700,988.76 11/15/2021 1,150,000 533,388.76 1,683,388.76 11/15/2022 465,000 483,938.76 948,938.76 11/15/2023 480,000 463,595.00 943,595.00 11/15/2024 505,000 442,475.00 947,475.00 11/15/2025 525,000 419,750.00 944,750.00 11/15/2026 555,000 393,500.00 948,500.00 11/15/2027 580,000 365,750.00 945,750.00 11/15/2028 610,000 336,750.00 946,750.00 11/15/2029 645,000 306,250.00 951,250.00 11/15/2030 670,000 274,000.00 944,000.00 11/15/2031 705,000 240,500.00 945,500.00 11/15/2032 745,000 205,250.00 950,250.00 11/15/2033 780,000 168,000.00 948,000.00 11/15/2034 820,000 129,000.00 949,000.00 11/15/2035 860,000 88,000.00 948,000.00 11/15/2036 900,000 45,000.00 945,000.00 23,630,000 16,813,675.55 40,443,675.55 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 7 AGGREGATE DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System ######################################################## AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Full Refunding to Existing Term of 2021 2006 Current Donner Lake Refunding of Completion& Period 1996 Water Construction Internal Loan Aggregate Ending COPS Fund Take-out Equipment Fund SRF Loan Debt Service 11/15/2006 - - - - 306,437 306,437.00 11/15/2007 754,869.02 845,965.53 104,752.10 141,542.50 306,437 2,153,566.15 11/15/2008 752,717.50 848,141.26 104,065.00 142,950.00 306,437 2,154,310.76 11/15/2009 754,042.50 847,791.26 102,715.00 142,550.00 306,437 2,153,535.76 11/15/2010 754,467.50 846,991.26 101,365.00 141,925.00 306,437 2,151,185.76 11/15/2011 748,992.50 845,741.26 100,015.00 141,075.00 306,437 2,142,260.76 11/15/2012 757,842.50 849,041.26 103,665.00 - 306,437 2,016,985.76 11/15/2013 755,342.50 846,666.26 102,090.00 - 306,437 2,010,535.76 11/15/2014 751,942.50 848,841.26 100,515.00 - 306,437 2,007,735.76 11/15/2015 757,642.50 845,341.26 98,940.00 - 306,437 2,008,360.76 11/15/2016 756,992.50 846,391.26 102,365.00 - 306,437 2,012,185.76 11/15/2017 753,192.50 848,391.26 100,765.00 - 153,218 1,855,566.76 11/15/2018 753,592.50 844,791.26 99,165.00 - - 1,697,548.76 11/15/2019 757,992.50 845,791.26 102,565.00 - - 1,706,348.76 11/15/2020 754,852.50 845,461.26 100,675.00 - - 1,700,988.76 11/15/2021 735,315.00 844,311.26 103,762.50 - - 1,683,388.76 11/15/2022 - 847,326.26 101,612.50 - - 948,938.76 11/15/2023 - 844,170.00 99,425.00 - - 943,595.00 11/15/2024 - 845,250.00 102,225.00 - - 947,475.00 11/15/2025 - 845,000.00 99,750.00 - - 944,750.00 11/15/2026 - 846,500.00 102,000.00 - - 948,500.00 11/15/2027 - 846,750.00 99,000.00 - - 945,750.00 11/15/2028 - 845,750.00 101,000.00 - - 946,750.00 11/15/2029 - 848,500.00 102,750.00 - - 951,250.00 11/15/2030 - 844,750.00 99,250.00 - - 944,000.00 11/15/2031 - 844,750.00 100,750.00 - - 945,500.00 11/15/2032 - 848,250.00 102,000.00 - - 950,250.00 1 t115/2033 - 845,000.00 103,000.00 - - 948,000.00 11/15/2034 - 845,250.00 103,750.00 - - 949,000.00 11/15/2035 - 848,750.00 99,250.00 - - 948,000.00 11/15/2036 - 845,250.00 99,750.00 - - 945,000.00 11,299,796.52 25,390,904.43 3,042,932.10 710,042.50 3,524,025 43,967,700.55 Aug 7,2006 11:08 am Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 8 SOURCES AND USES OF FUNDS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Sources: Bond Proceeds: Par Amount 23,290,000.00 Net Premium 330,498.10 23,620,498.10 Other Sources of Funds: 11-15-06 Interest payment 455,242.50 24,075,740.60 Uses: Project Fund Deposits: Project Fund 12,300,000.00 Donner Lake Completion&Loan Take-out 1,479,272.00 Equipment Fund 580,000.00 14,359,272.00 Refunding Escrow Deposits: Cash Deposit 0.18 SLG Purchases 7,660,980.00 7,660,980.18 Other Fund Deposits: Debt Service Reserve Fund 1,668,339.98 Delivery Date Expenses: Cost of Issuance 150,000.00 Underwriter's Discount 116,450.00 Bond Insurance at 30 bps 120,643.22 387,093.22 Other Uses of Funds: Rounding Amount 55.22 24,075,740.60 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 1 BOND SUMMARY STATISTICS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Last Maturity 11/15/2036 Arbitrage Yield 4.534934% True Interest Cost(TIC) 4.622499% Net Interest Cost(NIC) 4.648861% All-In TIC 4.685507% Average Coupon 4.708410% Average Life(years) 15.434 Duration of Issue(years) 10.415 Par Amount 23,290,000.00 Bond Proceeds 23,620,498.10 Total Interest 16,924,408.29 Net Interest 16,710,360.19 Total Debt Service 40,214,408.29 Maximum Annual Debt Service 1,885,261.26 Average Annual Debt Service 1,334,671.98 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 2 SUMMARY OF REFUNDING RESULTS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System ******************************************************** AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Tenn of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Arbitrage yield 4.534934% Escrow yield 4.534779% Bond Par Amount 7,825,000.00 True Interest Cost 4.273896% Net Interest Cost 4.212233% All-In TIC 4.358659% Average Coupon 4.256512% Average Life 9.655 Par amount of refunded bonds 7,360,000.00 Average coupon of refunded bonds 5.419447% Average life of refunded bonds 9.854 PV of prior debt to 09/28/2006 @ 4.534934% 8,006,704.33 Net PV Savings 449,142.32 Percentage savings of refunded bonds 6.102477% Percentage savings of refunding bonds 5.739838% Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 3 SAVINGS Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Present Value Prior Refunding to 09/28/2006 Date Debt Service Debt Service Savings Q 4.5349335% 11/15/2006 199,177.50 - 199,177.50 198,014.83 11/15/2007 398,355.00 386,019.83 12,335.17 11,438.04 11/15/2008 398,355.00 386,795.00 11,560.00 11,141.01 11/15/2009 803,355.00 789,545.00 13,810.00 12,629.92 11/15/2010 807,092.50 794,070.00 13,022.50 11,414.31 11/15/2011 799,302.50 787,470.00 11,832.50 9,957.62 11/15/2012 805,495.00 790,195.00 15,300.00 12,141.80 11/15/2013 804,845.00 791,795.00 13,050.00 9,956.59 11/I5/2014 802,345.00 787,270.00 15,075.00 10,902.86 11/15/2015 808,470.00 796,845.00 11,625.00 8,107.90 11/15/2016 807,670.00 794,845.00 12,825.00 8,486.88 11/15/2017 805,220.00 789,845.00 15,375.00 9,611.44 11/15/2018 801,740.00 789,045.00 12,695.00 7,583.84 11/15/2019 806,640.00 792,245.00 14,395.00 8,142.53 11/15/2020 804,380.00 792,845.00 11,535.00 6,220.51 11/15/2021 785,230.00 771,820.00 13,410.00 6,852.33 11,437,672.50 11,040,649.83 397,022.67 342,602.42 Savings Summary Dated Date 09/28/2006 Delivery Date 09/28/2006 PV of savings from cash flow 342,602.42 Less:Prior funds on hand (455,242,50) Plus:Refunding funds on hand 561,782.40 NetPV Savings 449,142.32 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 4 SUMMARY OF BONDS REFUNDED Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Maturity Interest Par Call Call Bond Date Rate Amount Date Price $10.905 mil,Rfdg COPs,Series 1996, 1996COPS: SERIAL 11/15/2009 5.250% 405,000.00 11/15/2006 102.000 11/15/2010 5.300% 430,000.00 11/15/2006 102.000 11/15/2011 5.350% 445,000.00 11/15/2006 102.000 11/15/2012 5.400% 475,000.00 11/15/2006 102.000 TERM16 11/15/2013 5.500% 500,000.00 11/15/2006 102.000 11/15/2014 5.500% 525,000.00 11/15/2006 102.000 11/15/2015 5.500% 560,000.00 11/15/2006 102.000 11/15/2016 5.500% 590,000.00 11/15/2006 102.000 TERM21 11/15/2017 5.400% 620,000.00 11/15/2006 102.000 I1/15/2018 5.400% 650,000.00 11/15/2006 102.000 11/15/2019 5.400% 690,000.00 11/15/2006 102.000 11/15/2020 5.400% 725,000.00 11/15/2006 102.000 11/15/2021 5.400% 745,000.00 11/15/2006 102.000 7,360,000.00 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 5 BOND PRICING Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Maturity Call Call Bond Component Date Amount Rate Yield Price Date Price Serial Bond: 11/15/2007 275,000 4.500% 3.580% 101.006 - - 11/15/2008 425,000 4.500% 3.600% 101.826 - - 11/15/2009 850,000 4.500% 3.650*/6 102.489 - - 11/15/2010 890,000 4.500% 3.700% 103.034 - - 11/15/20I1 920,000 4.500% 3.730% 103.561 - - 11/15/2012 830,000 4.500% 3.780% 103.903 - - 11/15/2013 865,000 4.500% 3.850% 104.015 - - 11/15/2014 900,000 4.500% 3.900% 104.142 - - 11/15/2015 950,000 4.500% 3.980% 103.944 - - 11/15/2016 990,000 4.000% 4.050°/a 99.584 - - 11/15/2017 1,025,000 4.000% 4.120% 98.933 - - 11/15/2018 1,060,000 4.000% 4.240% 97.738 - - 11/15/2019 1,110,000 4.200% 4.340% 98.605 - - 11/15/2020 1,155,000 4.250% 4.420% 98.222 - - 11/15/2021 1,190,000 4.300% 4.470% 98.140 - - 11/15/2022 465,000 4.375% 4.5200/6 98.347 - - 11/15/2023 485,000 4.400% 4.570°/a 97.990 - - 11/15/2024 505,000 4.500% 4.620% 98.532 - - 14,890,000 Term Bond due 2030: 11/15/2025 525,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2026 555,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2027 580,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2028 610,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2029 645,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 11/15/2030 670,000 5.000% 4.650% 102.796 C 11/15/2016 100.000 3,585,000 Term Bond due 2036: 11/15/2031 710,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2032 745,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2033 780,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 I1/15/2034 820,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2035 860,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 11/15/2036 900,000 5.000% 4.690% 102.471 C 11/15/2016 100.000 4,815,000 23,290,000 Dated Date 09/28/2006 Delivery Date 09/28/2006 First Coupon 05/15/2007 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 6 BOND DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 Dated Date 09/28/2006 Delivery Date 09/28/2006 Period Ending Principal Interest Debt Service 11/15/2006 - - - 11/15/2007 275,000 1,204,054.39 1,479,054.39 11/15/2008 425,000 1,052,636.26 1,477,636.26 11/15/2009 850,000 1,033,511.26 1,883,511.26 11/15/2010 890,000 995,261.26 1,885,261.26 11/15/2011 920,000 955,211.26 1,875,211.26 11/15/2012 830,000 913,811.26 1,743,811.26 11/15/2013 865,000 876,461.26 1,741,461.26 I1/15/2014 900,000 837,536.26 1,737,536.26 11/15/2015 950,000 797,036.26 1,747,036.26 11/15/2016 990,000 754,286.26 1,744,286.26 11/15/2017 1,025,000 714,686.26 1,739,686.26 11/15/2018 1,060,000 673,686.26 1,733,686.26 11/15/2019 1,110,000 631,286.26 1,741,286.26 11/15/2020 1,155,000 584,666.26 1,739,666.26 I1/15/2021 1,190,000 535,578.76 1,725,578.76 11/15/2022 465,000 484,408.76 949,408.76 11/15/2023 485,000 464,065.00 949,065.00 11/15/2024 505,000 442,725.00 947,725.00 11/15/2025 525,000 420,000.00 945,000.00 11/15/2026 555,000 393,750.00 948,750.00 11/15/2027 580,000 366,000.00 946,000.00 11/15/2028 610,000 337,000.00 947,000.00 11/15/2029 645,000 306,500.00 951,500.00 11/15/2030 670,000 274,250.00 944,250.00 11/15/2031 710,000 240,750.00 950,750.00 11/15/2032 745,000 205,250.00 950,250.00 11/15/2033 780,000 168,000.00 948,000.00 1t/15/2034 820,000 129,000.00 949,000.00 1t/15/2035 860,000 88,000.00 948,000.00 11/15/2036 900,000 45,000.00 945,000.00 23,290,000 16,924,408.29 40,214,408.29 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 7 AGGREGATE DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 2006 Current Donner Lake Refunding of Completion& Period 1996 Water Construction Internal Loan Unrefunded Aggregate Ending COPs Fund Take-out Equipment Fund Bonds SRF Loan Debt Service 11/15/2006 - - - - 378,443.75 306,437 694,880.75 11/15/2007 386,019.83 846,739.96 105,006.47 141,288.13 408,512.50 306,437 2,194,003.89 11/15/2008 386,795.00 848,826.26 104,290.00 137,725.00 404,827.50 306,437 2,188,900.76 11/15/2009 789,545.00 848,476.26 102,940.00 142,550.00 - 306,437 2,189,948.26 11/15/2010 794,070.00 847,676.26 101,590.00 141,925.00 - 306,437 2,191,698.26 11/15/2011 787,470.00 846,426.26 100,240.00 141,075.00 - 306,437 2,181,648.26 11/15/2012 790,195.00 849,726.26 103,890.00 - - 306,437 2,050,248.26 11/15/2013 791,795.00 847,351.26 102,315.00 - - 306,437 2,047,898.26 11/15/2014 787,270.00 849,526.26 100,740.00 - - 306,437 2,043,973.26 11/15/2015 796,845.00 846,026.26 104,165.00 - - 306,437 2,053,473.26 11/15/2016 794,845.00 847,076.26 102,365.00 - - 306,437 2,050,723.26 11/15/2017 789,845.00 849,076.26 100,765.00 - - 153,218 1,892,904.26 11/15/2018 789,045.00 845,476.26 99,165.00 - - - 1,733,686.26 11/15/2019 792,245.00 846,476.26 102,565.00 - - - 1,741,286.26 11/15/2020 792,845.00 846,146.26 100,675.00 - - - 1,739,666.26 11/15/2021 771,820.00 849,996.26 103,762.50 - - - 1,725,578.76 11/15/2022 - 847,796.26 101,612.50 - - - 949,408.76 11/15/2023 - 849,640.00 99,425.00 - - - 949,065.00 11/15/2024 - 845,500.00 102,225.00 - - - 947,725.00 11/15/2025 - 845,250.00 99,750.00 - - - 945,000.00 11/15/2026 - 846,750.00 102,000.00 - - - 948,750.00 11/15/2027 - 847,000.00 99,000.00 - - - 946,000.00 11/15/2028 - 846,000.00 101,000.00 - - - 947,000.00 11/15/2029 - 848,750.00 102,750.00 - - - 951,500.00 11/15/2030 - 845,000.00 99,250.00 - - - 944,250.00 11/15/2031 - 850,000.00 100,750.00 - - - 950,750.00 11/15/2032 - 848,250.00 102,000.00 - - - 950,250.00' Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 8 AGGREGATE DEBT SERVICE Truckee Donner Public Utility District 2006 Refunding Certificates of Participation Water System AAA-Insured Interest Rates as of August 8,2006 Scenario: New Money&Partial Refunding to Existing Term of 2021 2006 Current Donner Lake Refunding of Completion& Period 1996 Water Construction Internal Loan Unrefunded Aggregate Ending COPS Fund Take-out Equipment Fund Bonds SRF Loan Debt Service 11/15/2033 - 845,000.00 103,000.00 - - - 948,000.00 11/15/2034 - 845,250.00 103,750.00 - - - 949,000.00 11/15/2035 - 848,750.00 99,250.00 - - - 948,000.00 11/15/2036 - 845,250.00 99,750.00 - - - 945,000.00 11,040,649.83 25,419,208.86 3,049,986.47 704,563.13 1,191,783.75 3,524,025 44,930,217.04 Aug 7,2006 3:00 pm Prepared by Stone&Youngberg LLC(UY) (Truckee Donner PUD:2006COPS) Page 9 APPENDIX B Estimated Historic and Projected Water Enterprise Pro Forma Page B-1 TRUCKEE PUBLIC UTILITY DISTRICT WATER SYSTEM Historic and Projected Coverage Table Calendar Years 2001 through 2011 Audits Budget Projections 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 OPERATING REVENUE Sales to consumers $4,493,779 $5,719,245 $6,508,637 $7,089,121 $7,563,132 $7,817,647 $8,286,706 $8,783,908 $8,915,667 $8,915,667 $8,915,667 Interdivisional sales 968 997 1,110 1,166 1,209 1,268 1,268 1,268 1,268 1,268 1,268 Standby fees 258,122 159,040 148,860 196,080 183,119 184,720 184,720 184,720 184,720 184,720 184,720 303,246 737,665 303,246 303,246 303,246 303,246 303,246 Connection fees 121,320 207,551 235,109 343,581 Other 173,569 271,806 390,988 401,766 416,335 240,777 240,777 240,777 240,777 240,777 240,777 Total Operating Revenues 5,047,758 6,358,639 7,284,704 8,031,714 8,467,041 8,982,077 9,016,717 9,513,919 9,645,678 9,645,678 9,645,678 Income from investments 225,130 516,352 575,403 518,225 594,842 67,189 67,189 67,189 67,189 67,189 67,189 Total Revenues 5,272,888 6,874,991 7,860,107 8,549,939 9,061,883 9,049,266 9,083,906 9,581,1us 9,712,867 9,712,867 9,712,867 OPERATING EXPENDITURES Power purchases 698,213 1,184,833 1,288,435 1,460,368 1,694,525 1,745,361 1,797,722 1,851,653 1,907,203 1,964,419 Operations and maintenance 1,712,041 2,133,267 2,582,926 2,697,016 4,229,692 2,647,070 2,726,482 2,808,277 2,892,525 2,979,301 3,068,680 Administrative and general 1,159,609 1,192,054 1,166,604 1,413,250 1,525,486 2,045,461 2,106,825 2,170,030 2,235,130 2,302,184 2,371,250 Consumer services 173,524 751,294 255.477 290,500 297,517 Total Expenditures 3,743,387 4,761,448 5,293,442 5,801,134 6,052,695 6,387,056 6,578,668 6,776,028 6,979,309 7,188,688 7,404,348 Net Revenues 1,529,501 2,113,543 2,566,665 2,688,805 3,009,188 2,662,210 2,505,238 2,805,080 2,733,558 2,524,179 2,308,518 Net Revenues Less Connection Fees 1,408,181 1,905,992 2,331,556 2,345,224 2,705,942 1,924,545 2,201,992 2,501,834 2,430,312 2,220,933 2,005,272 Debt Service DWR/Prop 55 Loan* 306,437 306,437 306,437 306,437 306,437 306,437 306,437 306,43 306,430 306,430 306,430 0 Series1996 Water COPs 803,993 804,818 804,855 804,105 802,568 806,968 0 0 0 0 2006 Certificates of Participation 0 0 0 0 0 0 1,684,464 1,673,083 1,671,833 1,670,133 1,672,983 Total Debt Service 1,110,430 1,111,255 1,111,292 1,110,542 1,109,005 1,113,305 1,99Q901 1,979,520 1,978,270 1,976,570 1,979,420 Debt Service Coverage 1.27 1.72 2.l0 2.11 2.44 L73 1.1 l L26 1.23 1.12 LO1 Coverage excluding connection fees Coverage including connection fees 1.38 1.90 2.31 2.42 2.71 2.39 1.26 1.42 1.38 1.28 1.17 i Notes 1)Source documents:Truckee Donner PUD Financial Statements for years ending December 31,1999-2005 and Budget 2006. 2)Assumes Water Rate Increases of 6%in January 1,2007 and in January 1,2008,and inflated at 1.5%annually thereafter to reflect expanding rat 3)Future connection fees are estimated based at 2005 level. 4)2006 COPS assumes 30-year refunding and new money issue at market rates as of August 3,2006. 4)Annual payments on DWR/Prop 55 Loan estimated from 2006 Budget APPENDIX C Stone&Youngberg Water and Wastewater Enterprise Underwriting Experience Since 2001 Page C-1 APPENDIX C Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Issue Name Par Value S&Y Role Security Type Sale Type State Dated Date Issuer 06/22/06 New York State Environmental Facilities Corporation St Clean Water and Drinking Water,Revolv Funds Rev Bonds(NYC Mute 250,460,000 'Member Water Revenue Neg NY Water Fin Auth Proj-2nd Resolution Bonds)Sub Ser2006B 06/22/06 New York State Environmental Facilities Corporation State Clean Water and Drinking Water,Revolving Funds Rev Bonds(NYC 196,60Q 000 Member Water Revenue Neg NY Muni Water Fin Auth Proj-2nd Resolution Bonds)Ser 2006A 06/06/06 Truckee Meadow Water Authority Water Revenue Refunding Bonds,Series 2006 150,755,000 Member Water Revenue Comp NV 05/23/06 San Jose-Santa Clara Clean Water Financing Authority Sewer Revenue Refunding Bonds,Series 2005A 54,020,000 Sole Waste Water Revenue Comp CA 04/25/06 Garden Grove Sanitary District Revenue Certificates of Participation(Sewer Services Capital Improvement 21,845,000 Sole COP/Lease Revenue Neg CA Program)Series 2006 04/19/06 Kern County Water Agency Improvement District No.4 California Water Revenue Certificates of Participation,Series 2006A 17,185,000 Lead COP/Lease Revenue Comp CA 03/30/06 Anne Arundel County Consolidated Water and Sewer Series,2006 Refunding Series 34,060,000 Member General Obligation Comp MD 03/30/06 Anne Arundel County Consolidated Water and Sewer Series,2006 19,000,000 Member General Obligation Comp MD 03/29/06 Malibu,City of Certificates of Participation,2006B(Tax-Exempt)(Integrated Water Quality 5,155,000 Sole COP/Lease Revenue Neg CA Management Project-Phase 1) 03/29/06 Malibu,City of Certificates of Participation,2006A(Taxable)(Integrated Water Quality 12,425,000 Sole COP/Lease Revenue Neg CA Management Project-Phase n 03/29/06 Arizona Water Infrastructure Finance Authority Water Quality Revenue Bonds,Series 2006A 2U5,40Q 000 Co-Mgr Water Revenue Neg AZ 03/23/06 New York City Municipal Finance Authority Water and Sewer System Revenue Bonds,Fiscal 2006 Series D 406,205,000 Member Water Revenue Neg NY 03/21/06 Amador Water Agency Revenue Certificates of Participation,2006 Series A 23,24Q OOU Sole COP/Lease Revenue Neg CA 01/24/06 Cottonwood,City of Senior Lien Water System Revenue Bonds,Series 2006 23,965,000 Sole Water Revenue Neg AZ 12/15/05 Los Angeles City Wastewater System Subordinate Revenue Bonds Variable Rate Refunding,2001 Series C,Liquidity 44,400,000 Sole Waste Water Revenue Neg CA Facility-Municipal Securities Purchase Inc. 12/13/05 Los Angeles,City of Wastewater System Revenue Bonds,Refunding Series 2005-A 298,805,000 Co-Mgr Waste Water Revenue Comp CA 11/30/05 Camarillo Public Financing Authority Wastewater Revenue Bonds,Series 2005 23,000,000 Lead Waste Water Revenue Comp CA --- - 10/27/05 Henderson,City of General Obligation(Limited Tax)Water and Sewer Refunding Bonds 5,210,000 Sole General Obligation Comp NV (Additionally Secured by Pledged Revenues)Series 2005C 10/18/05 N Finance -New York City Municipal Water Authority Water and Sewer System Revenue Bonds,Fiscal 2006 Series A 524,530,000 Member Water Revenue Neg NY 10/12/05 New York State Environmental Facilities Corporation State Clean Water&Drinking Water 221,010 000 Member Water Revenue Neg NY (,NYC Municipal Water FA Projects)(2nd Reso Bonds) — 09/22/05 Avenal Public Financing Authority 2005 Refunding Revenue Bonds 9,660 000 Sole Water Revenue Neg CA 07/28/05 Metropolitan Water District of Southern California Water Revenue Bonds,2005 Authorization Series A 100,000,000 Co-blgr Water Revenue Neg CA Page 1 of 6 Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Security Type Sale Type State Sewer System Revenue Certificates of Participation,Series 2005 13,000,000 Sole COP/Lease Revenue Neg CA 06/08/05 Rohnert Park,City of Y 06/07/05 Western Riverside Water and Wastewater Financing Authority Revenue Bonds,Series 2005A(Eastern Municipal Water District Improvement 18,255,000 Sole Water Revenue Neg CA Districts General Obligation Bond Financing) — 06/01/05 Parsippany-Troy Hills,Township of General Obligation Bonds;$1.283 Mil Sewer Utility Bonds and$456,000 Water 25,000,000 Member General Obligation Comp NJ Utility Bonds 05/05/05 Clovis Public Financing Authority Wastewater Revenue Bonds,Series 2005 25,735,000 Sole Waste Water Revenue Neg CA 04/28/OS Oxnard Financing Authority,City of Solid Waste Revenue Refunding Bonds,Series 2005(Subject to AMT) 20,955,000 Lead Waste Water Revenue Neg CA 04/26/05 New York City Municipal Water Finance Authority,Water and Sewer System Revenue Bonds, 559,205,000 Member Water Revenue Neg NY Fiscal 2005 Series D 2005 Water Refunding Revenue Bonds,Series A 3,705,000 Sole Water Revenue Neg CA 04/20/05 Santa Fe Springs Public Financing Authority g 03/23/OS Chandler,City of Water and Sewer Revenue Bonds,Series 2005 1Q000'000 Sole Water Revenue Comp A/ 47,085,000 Sole Water Revenue Neg CA 03/23/05 Fairfield,City of Water Revenue Refunding Bonds,Series 2005 Water and Sewer System Revenue Bonds 582,915,000 Member Water Revenue Comp NY 03/17/05 New York City Municipal Water Authority }' 03/17/OS Santa Cruz County Sanitation District 2005 Wastewater Revenue Refunding Bonds,Bank Qualified 9,335,000 Sole Waste Water Revenue Neg CA 02/O1/05 Dallas,Ci 'of Waterworks and Sewer System,Revenue Refunding Bonds,Series 2005 235,805,000 Member Water Revenue Comp TX R Certificates of Participation,1996 Wastewater Refunding Project, 28,805,000 Sole COP/Lease Revenue Neg CA Ol/06/OS Escondido,City of evenue Series 2004A 01/06/05 Escondido,City of Revenue Certificates of Participation,2004 Wastewater Capital Project,Series 10,775,000 Sole COP/Lease Revenue Neg CA 2004B(Taxable) 12/01/04 Phoenix Civic Improvement Corporation City of Phoenix Civic Improvement Corporation Jr.Lien Wastewater System 180,000,000 Member Waste Water Revenue Neg AZ Revenue Bonds,Series 2004 1l/Ot/04 Huntington,Town of— $$8,320,000 Public Improvement Serial Bonds 2004 Series A;$3,500,000 S. 11,820,000 Member General Obligation Comp NY Huntington Water District Serial Bonds,2004 Bonds — 10/28/04 Seattle,City of Drainage and Wastewater Revenue Bonds,2004 62,010,000 Member Waste Water Revenue Comp WA ( 10/25/04 Seattle,City of Water System Revenue Bonds,2004 84,750,000 Member Water Revenue Comp VG'A 10/20/04 Cottonwood,City of City of Cottonwood Municipal Property Corporation,Senior Lien Water 13,580,000 Sole Water Revenue Neg AI System Revenue Bonds,Series 2004 10/14/04 Fairfax County Virginia Sewer Revenue Refunding Bonds Series 2004 94,005,000 Member Waste Water Revenue Comp VA 10/Ol/04 Dearborn,City of General Obligation Sewer Bonds,Series 2004 B 24,500,000 Member General Obligation Comp MI 09/29/04 Mountain View,City of Water Revenue Bonds,Graham Reservoir Project,2004 Series A 9,700,000 Sole Water Revenue Comp CA Page 2 of 6 Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Security Type Sale Type State 08/05/04 New York City Municipal Water Finance Authority Water and Sewer System Revenue Bonds,Fiscal 2005 Series A 150,000,000 Member Water Revenue Comp NY 08/01/04 Waterloo,City of Iowa Sewer Revenue Refunding Bonds,Series 2004A 11,640,000 Member Waste Water Revenue Comp IA 06/29/04 Yucaipa Valley Water District Water System Revenue Certificates of Participation,Series 2004A 45,730,000 Co-Mgr COP/Lease Revenue Comp CA 05/05/04 Castaic Lake Water Agency Refunding Revenue Certificates of Participation,Series 2004A,1994 Refunding 29,085,000 Sole COP/Lease Revenue Neg CA Project 04/09/04 Lake Havasu City Senior lien Revenue Bonds 9,500,000 FA Waste Water Revenue PP AZ 04/08/04 Santa Rosa,City of Wastewater Revenue Bonds,Series 2004 B 22,525,000 Sole Waste Water Revenue Neg CA 04/08/04 Santa Rosa,City of Variable Rate Demand Wastewater Revenue Refunding Bonds,Series 2004A 57,880,000 Sole Waste Water Revenue Neg CA 04/07/04 New York State Environmental Facilities Corporation State Clean Water and Drinking Water Revolving Fund Revenue Bonds,Series 238,165,000 Member Water Revenue Comp NY 2004 C,NYC Municipal Water Finance Auth.Projects 03/18/04 New York City Municipal Water Finance Authority Water and Sewer System Revenu Bonds,Fiscal 2004 Series C 601,545,000 Member Water Revenue Comp NY 03/18/04 New York City Municipal Water Finance Authority- Water and Sewer System Revenue Bonds Fiscal 2004 Series B 347,650,000 Member Waste Water Revenue Comp NY 03/02/04 Scottsdale,City of City of Scottsdale,Water and Sewer Revenue Refunding Bonds,Series 2004 18,880,000 Lead Water Revenue Neg Az 03/O1/04 Greeley,City of Water Revenue Bonds,Series March 1,2004 17,210,000 Member Water Revenue Comp CO 02/18/04 Oxnard Financing Authority Water Revenue Project Bonds,Series 2004 47,895,000 Sole Water Revenue Neg CA 12/18/03 Chino Hills,City of Refunding Certificates of Participation(2003 Water System Project) 18,210,000 FA COP/Lease Revenue Comp CA 12/01/03 Oro Valley Municipal Property Corporation Senior lien Water Project Revenue Bonds,Series 2003 31,750,000 Sole Water Revenue Neg AI. 11/20/03 Alameda County Water District Revenue Certificates of Participation(2003 Water System Project) 25,000,000 FA COP/Lease Revenue Comp CA 11/20/03 California City Financing Authority Lease Revenue Bonds(Wastewater Improvement Project)Series 2003 2,000,000 Sole COP/Lease Revenue Neg Cif 11/O1/03 Beloit,City of Water System Revenue Bonds,Series 2003 25,210,000 Member Water Revenue Comp Wl 10/29/03 Santa Fe Springs Public Financing Authority 2003 Water Revenue Bonds,Series A,Bank Qualified 4,625,000 Sole Water Revenue Neg CA 10/22/03 Santa Paula Public Financing Authority Water Revenue Bonds,Series 2003 29,430,000 Sole Water Revenue Neg CA 10/16/03 Goleta Water District Refunding Revenue Certificates of Participation(1991 Project and 2003 47,000,000 Sole COP/Lease Revenue Neg CA Project)Series 2003 08/20/03 Moulton Niguel Water District 2003 Refunding Certificates of Participation 25,145,000 Sole COP/Lease Revenue Neg CA Page 3of6 I Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Security Type Sale Type State 07/16/03 Lathrop Financing Authority Revenue Bonds(Water Supply Project)Series 2003 32,530,000 Sole Water Revenue Neg CA 06/04/03 Moulton Niguel Water District 2003 Consolidated Refunding Bonds(General Obligation Bonds) 62,975,000 Sole General Obligation Neg CA 06/01/03 Ashland,City of Water Revenue Bonds,Series 2003,Bank Qualified 5,625,000 Sole Water Revenue Comp OR 06/01/03 Grosse Pointe Woods,City of Water Supply and Sewage Disposal System,Revenue Bonds,Series 2003,Bank 5,300,000 Sole Water Revenue Comp Nil Qualified 06/01/03 Northampton Borough Municipal Authority Pennsylvania Water Revenue Bonds,Series of 2003,Bank Qualified 5,480,000 Sole Water Revenue Comp PA 04/08/03 South Coast Water District 2003 Enterprise Revenue Refunding Bonds 3,795,000 Lead Water Revenue Comp CA i 04/01/03 Cucamonga County Water District Certificates of Participation(2003 Water Facilities Refinancing) 13,340,000 Sole COP/Lease Revenue Neg CA 04/01/03 Prescott Valley,Town of Sewer Revenue Refunding Bonds,Series 2003 10,545,000 Sole Waste Water Revenue Neg AZ 03/31/03 Fairfield,City of Water Revenue Refunding Bonds,Series 2003 9,280,000 Sole Water Revenue Neg CA 03/01/03 California Department of Water Resources Central Valley Project,Water System Revenue Bonds,Series AA 108,705,000 Co-Mgr Water Revenue Neg CA 03/01/03 California Department of Water Resources Central Valley Project,Water System Revenue Bonds,Series Y 329,885,000 Co-Mgr Water Revenue Neg CA 01/01/03 Los Angeles,City of Department of Water and Power Water System Revenue Bonds,2003 Series A 300,000,000 Co-Mgr Water Revenue Comp CA 12/23/02 San Luis Obispo,City of 2002 Water Revenue Refunding Bonds 9,485,000 Lead Water Revenue Comp CA 12/19/02 Contra Costa,County of Water Treatment Revenue Refunding Bonds 47,935,000 Co-Mgr Water Revenue Comp CA l l/07/02 California Department of Water Resources Power Supply Revenue Bonds,Series 2002A 6,313,500,000 Co.Mgr Water Revenue Neg CA 10/01/02 Denver Board of Water Commissioners General Obligation Water Refunding Bonds,Series 2002 11,610,000 Sole General Obligation Comp CO 10/01/02 California Department of Water Resources Central Valley Project,Water System Revenue Bonds,Series Z 170,655,000 Co-Mgr Water Revenue Neg CA 09/01/02 Broomfield,City and County of Water Activity Enterprise 43,000,000 Co-Mgr Water Revenue Comp CO 08/20/02 Visalia,City of Wastewater System Reverie Bonds 9,725,000 Sole Waste Water Revenue Neg CA 08/08/02 San Francisco,City and County of Public Utilities Commission,SF Water Revenue Bonds 164,000,000 Co-Mgr Water Revenue Comp CA 08/06/02 Yuba City,City of 2002 Wastewater Revenue Certificates 11,000,000 Lead Waste Water Revenue Comp CA 08/O1/02 River Falls,City of Sewerage System Revenue Bonds,Series 2002A 2,790,000 Lead Waste Water Revenue Comp Wl Page 4 of 6 Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Issue Name Par Value S&Y Role Security Type Sale Type State Dated Date Issuer 08/01/02 Lansing,City of Water supply,Steam and Electric Utility System Revenue Bonds,Series 2002B 19,015,000 Co Mgr Water Revenue Comp MI 08/O1/02 Brisbane Public Financing Authority Revenue Bonds,2002 Series A(Water and Wastewater Systems Financing 4,450,000 Lead Water Revenue Comp CA Project) 07/02/02 Baltimore County Baltimore County Metropolitan District Bonds(68th Issue) G5,000,000 Co-Mgr Water Revenue Comp MD Certificates of Participation(2002 Wastewater System Improvement Project) 9,500,000 Co-Mgr COP/Lease Revenue Comp CA 06/13/02 San Bruno,City of 06/06/02 Central Contra Costa Sanitary District 2002 Revenue Installment Certificates(Wastewater Facilities Improvement 16,565,000 FA Waste Water Revenue Comp CA Project) 2,820,000 Sole Waste Water Revenue Comp CA 06/06/02 Pleasanton,City of Sewer Revenue Refunding Bonds 06/04/02 Santa Rosa,City of Wastewater Revenue Bonds,Series 2002B 49,123,380 Sole Waste Water Revenue Neg CA t 06/04/02 Santa Rosa,City of Santa Rosa Wastewater Service Facilities District 2002 Refunding 8,840,000 Sole Waste Water Revenue Neg CA Improvement Bonds 06/01/02 Chandler,City of Water and Sewer Revenue Refunding Bonds,Series 2002 11,24Q000 Co-Mgr Waste Water Revenue Comp AI 05/29/02 Lincoln,City of Sewer and Drainage System Bonds,Series 2002 7,500,000 Co-Mgr Waste Water Revenue Comp NE 05/15/02 Chino Hills,City of Certificates of Participation(2002 Water System Project) 9,545,000 FA COP/Lease Revenue Comp CA O5/01/02 Santa Rosa,City of Wastewater Revenue Bonds,Series 2002A 100,000,000 Sole Waste Water Revenue Neg CA I OS/01/02 Van Buren County Water Supply System Bonds(Covert Water Supply System)limited Tax GO, 5,000,000 Sole Water Revenue Comp MI Series 2002 04/30/02 California Department of Water Resources Central Valley Project Revenue Bonds(Series 2002X) 160,225,000 Co-Mgr Water Revenue Neg CA 04/01/02 Denver,City and County of Wastewater Revenue Bonds(For And On Behalf of The Wastewater 30,700,000 Co-Mgr Waste Water Revenue Comp CO Management Division of Its Department of Public Works) d Water Revenue Comp CA - 02/01/02 Sacramento City Financing Authority Revenue Bonds(Water System Improvement Project),Series 2002 25,200,000 Lea 11/07/01 Los Angeles Wastewater System Subordinate Revenue Bonds Variable Rate Refunding,Series 2001C 46,30Q000 Sole Waste Water Revenue Neg CA 2001 Revenue Bonds,Series A(VWater Facilities Project) 2,250,000 Sole Water Revenue Neg CA 10/17/01 Sonoma Public Financing Authority 08/16/O1 West Kern Water District Limited Revenue Certificates of Participation(2001 Water Facilities Project) 17,820,000 Sole COP/Lease Revenue Neg CA 08/01/01 Petaluma,City of Water Revenue Bonds,Series 2001 10,165,000 Co-Mgr Water Revenue Comp CA 08/Ot/O1 San Francisco,City and County of Public Utility Commission,San Francisco Water Revenue Bonds,2001 Series A 140 000,000 Co-Mgr Water Revenue Comp CA 07/17/Ol Oxnard Financing Authority Water Revenue Refunding and Project Bonds,Series 2001 12,410,000 Sole Water Revenue Neg CA Page 5 of 6 Stone&Youngberg Underwriting Experience National Water/Wastewater Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Security Type Sale Type State 07/12/01 Santa Rosa,City of Wastewater Revenue Bonds,Series 2001B 11,870,000 Sole Waste Water Revenue Neg CA 07/12/01 Santa Rosa,City of Variable Rate Demand Wastewater Revenue Bonds,Series 2001A(Taxable) 30,100,000 Sole Waste Water Revenue Neg CA 06/27/O1 Cucamonga County Water District Certificates of Participation(2001 Water Facilities and Refinancing) 40,260,000 Sole COP/Lease Revenue Neg CA 06/19/O1 Yuba City,City of Water Revenue Certificates,Series 2001(Bank Qualified) 5,000,000 Lead Water Revenue Comp CA 04/30/O1 Fairfield-Suisun Sewer District Sewer Revenue Refunding Bonds,2001 Series A 21,370,000 Sole Waste Water Revenue Neg CA 04/25/01 Sacramento City Financing Authority 2001 Capital Improvement Revenue Bonds,Series A(Water and Capital 206,780,000 Co.Mgr Tax Allocation Neg CA Improvement Projects) 03/21/01 Livermore-Amador Valley Water Management Agency Sewer Revenue Bonds,Series A 142,385,000 FA Waste Water Revenue Neg CA 03/O1/01 Castaic Lake Water Agency Revenue Certificates of Participation,Series 2001A 80,000,000 Sole COP/Lease Revenue Neg CA 03/01/01 Cucamonga County Water District Certificates of Participation(2000 Water Shares Purchase) 89,280 000 Sole COP/Lease Revenue Neg CA t `i (f i { I I Page 6 of 6 APPENDIX D Stone&Youngberg California Lease Revenue and COP Underwriting Experience Since 2001 Page D-1 APPENDIX D Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Sale Type 08/09/06 La Mesa Certificates of Participation 2006B(Tax-Exempt)(Civic Center Project) 3,170,000 Sole Neg 08/09/06 La Mesa Certificates of Participation 2006A(Taxable)(Civic Center Project) 1,830,000 Sole Neg 08/02/06 Panama-Buena Vista Union School District (2006 School Construction Project)Certificates of Participation 33,880,000 Sole Neg 06/28/06 Fresno Joint Powers Financing Authority California Lease Revenue Bonds(Convention Center Improvement Projects) 15,420,000 Lead Comp Series 2006A 06/14/06 Windsor Unified School District Certificates of Participation(2006 Capital Projects)(Bank Qualified) 7,445,000 Sole Comp 05/23/06 Los Alamitos 2006 Certificates of Participation(Laurel Park Acquisition)(Bank Qualified) 3,365,000 Sole Comp O5/18/06 Linda Fire Protection District Certificates of Participation(2006 Fire Station Financing Project) 4,065,000 Sole Comp j 04/06/06 Arvin Union School District Certificates of Participation(2006 School Facility Bridge Funding Program) 7,200,000 Sole Neg (Bank Qualified) 03/23/06 Lakeside Union School District Certificates of Participation(2006 School Facility Bridge Funding Program) 10,000,000 Sole Neg (Bank Qualified) 04/06/06 Stockton Public Financing Authority 2006 Lease Revenue Refunding Bonds 13,965,000 Sole Neg 03/16/06 Vallejo Sanitation and Flood Control District Certificates of Participation(Overflow Elimination Program)Series 2006 39,665,000 Sole Neg 03/22/06 Newman-Crows Landing Unified School District California 2006 Refunding Certificates of Participation 6,990,000 Sole Comp 03/08/06 San Diego,County of Burnham Institute for Medical Research,2006 Certificates of Participation 59,405,000 Sole Neg O1/10/06 McSwam Union Elementary School District Certificates of Participation(2005 Financing Project)Bank Qualified 3,20Q000 Sole Ncg E 12/15/05 Los Angeles,City of Adjustable Rate Certificates of Participation(Loyola Iligh School of Los 30,000,000 Sole Neg Angeles)2005 Series A 12/29/05 Santa Rosa,City of Refunding Certificates of Participation(Redevelopment Agency Refinancing 1,500,000 Sole Neg Project)2005 Series A 10/13/05 San Rafael City Elementary School District Certificates of Participation(2005 Financing Program) 4,500,000 Sole Neg 09/29/05 Visalia Unified School District 2005 Refunding Certificates of Participation 11,955,000 Ixad Comp 09/29/05 Salinas,City of Refunding Certificates of Participation(Twin Creeks Golf Course)Series 8,005,000 Lead Neg 2005A 09/29/05 Salinas,City of Refunding Certificates of Participation(1997 Capital Improvement Projects) 11,705,000 Lead Neg i Series 2005B 09/14/05 Santa Rosa,City of Certificates of Participation(Bennett Valley Municipal Golf Course Project) 3,950,000 Sole Neg 2005 Series A 09/14/05 Santa Rosa,City of Certificates of Participation(Bennett Valley Municipal Golf Course Project) 1,725,000 Sole Neg 2005 Series B(Taxable) Page 1 of 7 Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Issue Name Par Value S&Y Role Sate Type Dated Date Issuer 419,755,000 Co-Mgr Neg 08/16/05 Orange County Public Financing Authority Lease Revenue Refunding Bonds,Series 2005 08/17/05 Amador,County of Certificates of Participation,Series 2005 9,070,000 Lead Comp 07/13/05 Coronado Unified School District Certificates of Participation(2005 Financing Project) 71,085,000 Sole Neg 06/01/05 California State Public Works Board Lease Revenue Bonds(The Regents of the University of Californ a)2005 Series 342,660,000 Co-Mgr Neg D(Various University of California Projects) 06/30/05 Roseville,City of Electric System Revenue Certificates of Participation,Series 2005A 52,900,000 Co-Mgr Neg 05/12/05 Visalia,City of 2005 Refunding Certificates of Participation 27,590,000 Sole Neg 05/04/05 Lincoln Unified School District 2005 Refunding Certificates of Participation 3,625,000 Sole Neg - - -- - - ---- 04/Ol/OS California State Public Works Board Lease Revenue Bonds,"1"he Regents of the L'mversit}'of California,2005 Series 129,170,000 Co-Mgr Neg C 04/01/05 California State Public Works Board 2005 Lease Revenue Bonds,Series A,Department of General Services, 218,380,000 Lead Neg Butterfield State Office Complex 04/01/05 California State Public Works Board 2005 Lease Revenue Bonds,Series B,Department of Health Services, 51,900,000 Lead Neg Richmond Laboratory: Phase III Office Building 04/13/05 Danville,Town of Certificates of Participation,2005 Capital Improvement Project,Bank Qualified 5,600,000 Lead Comp 17,000,000 FA Comp 01/01/05 San Ysidro School District 2005 Certificates of Participation,CFD No.2 and No.3 O1/20/05 Moreno Valley Unified School District 2005 Refunding Certificates of Participation 25,340,000 Sole Ncg 01/11/05 Lodi Unified School District Certificates of Participation(Aspire Project) 21,680,000 Sole Neg 11/30/04 Palmdale,City of Certificates of Participation,2004 Infrastructure Financing Project 13,455,000 Sole Neg j 11/01/04 Clovis Unified School District 2004 Certificates of Participation 28,900,000 Sole Neg 11/23/04 Brea Public Financing Authority 2004 Refunding Lease Revenue Bonds,Bank Qualified 41330,000 Sole Neg 1 10/27/04 Menifee Union School District Refunding Certificates of Participation,1996 School Project 8,135,000 Sole Neg t 10/14/04 Fresno County Financing Authority Lease Revenue Bonds,Series 2004B,Energy Savings Projects 14,450,000 Sole Comp 10/13/04 Sierra Joint Community College District Certificates of Participation,Series 2004 7,400,000 Sole Neg 09/23/04 Hesperia Unified School District Certificates of Participation(2004 Interim School Facility Funding Program) 50,000,000 Sole Neg 09/01/04 Manteca Unified School District 2004 Certificates of Participation 10,845,147 Sole Neg 09/02/04 Simi Valley Public Financing Authority 2004 Certificates of Participation 25,955,000 Sole Neg Page 2 of 7 Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Sale Type 08/26/04 Morgan Hill Financing Authority Lease Revenue Bonds,Police Facility,Series 2004 7,560,000 Sole Comp 08/17/04 Los Angeles County Capital Asset Leasing Corporation California Lease Revenue Bonds 2004 Series A,Lac-Cal Equipment Program 12,240,000 Lead Comp 08/12/04 Burton Elementary School District 2004 Refunding Certificates of Participation 1,680,000 Sole Neg 06/25/04 Stockton Public Financing Authority Lease Revenue Bonds,Serics 2004,Parking and Capital Projects 32,810,000 Sole Neg 07/24/04 Jefferson School District 2004 School Facilities Project,Certificates of Participation,Bank Qualified 4,285,000 Sole Neg 06/03/04 Santa Cruz,City of 2004 Certificates of Participation,City of Santa Cruz Golf Course Improvement 5,340,000 Sole Comp Project 06/03/04 Palm Springs,City of Lease Revenue Bonds,2004 Series A,Convention Center Expansion Project 62,395,000 Sole Neg - --- - - 04/08/04 San Marcos Schools Financing Authority 2004 Lease Revenue Bonds,North County Regional Education Center 6,465,000 Sole Neg 03/10/04 El Paso de Robles,City of 2004 Refunding Certificates of Participation,Bank Qualified 5,460,000 Sole Neg 12/18/03 Roseville Joint Union High School District Certificates of Participation(2003 Projects) 6,300,000 Sole Neg 12/18/03 Redwood City Public Financing Authority Lease Revenue Bonds,Series 2003 11,475,000 Sole Neg 12/16/03 Yorba Linda Public Financing Authority 2003 Lease Revenue Refunding Certificates of Participation,Black Gold Golf 19,370,000 Sole Neg Course Project 10/28/03 Hercules Public Financing Authority Lease Revenue Bonds,Series 2003B 9,150,000 Sole Neg 10/01/03 Sonoma,County of Certificates of Participation,2003 Series B,Juvenile Justice Center Project 4,960,000 Co-Mgr Comp 10/02/03 Cajon Valley Union Elementary School District 2003 Certificates of Participation 10,180,000 Lead Comp 10/01/03 Sonoma,County of Cfir s Participation,2 003 Series A(1993 COPS Refinancing) 24,255,000 Co-Mgr Comp 09/01/03 Lodi Unified School District 2003 Refunding Certificates of Participation(Refunding and 2003 Capital 10,985,000 Sole Neg Projects) 09/18/03 Mountain View,City of 2003 Certificates of Participation(Refunding and Capital Projects) 16,930,000 Sole Neg 08/01/03 Calistoga Joint Unified School District Certificates of Participation(2003 Financing Project) 1,285,000 Sole Neg Lease Revenue Refunding 07/30/03 Rohnert Park Financing Authority g Bonds,Series 2003 6,950,000 Sole Neg 07/02/03 Riverside Redevelopment Agency Lease Revenue Refunding Bonds(State of California Department of General 26,255,000 Sole Neg Services Project)2003 Series A(Tax-Exempt) 07/08/03 Riverside Redevelopment Agency Lease Revenue Refunding Bonds(State of California Deptartmcm of General 4,810,000 Sole Neg Services Project)2003 Series B Cfaxable) 07/08/03 Riverside Redevelopment Agency Lease Revenue Refunding Bonds(State of California Dept of General Svcs.) 4,810,000 Sole Neg Page 3 of 7 III Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Sale Type i 07/17/03 Roseville,City of Certificates of Participation Series 2003A(1993 Public Facilities Refunding) 18,275,000 Sole Neg I 07/17/03 Roseville,City of Certificates of Participation Series 2003B(1993 Golf Course Refunding) 8,240,000 Sole Neg i t i 07/02/03 Pountain Valley,City of 2003 Certificates of Participation(Capital Improvement Projects) 13,270,000 Sole Neg 06/27/03 Stockton,City of Certificates of Participation,Series 2003A(Redevelopment Housing Projects) 1,160,000 Sole Neg 06/07/03 Stockton,City of Certificates of Participation,Taxable Series 2003B(Redevelopment housing 12,140,000 Sole Neg Projects) 06/l l/03 Hercules Public Financing Authority Lease Revenue Bonds,Series 2003 A 7,000,000 Sole Neg i 06/30/03 Butte,County of 2003 Refunding Certificates of Participation(Bank Qualified) 5,150,000 Sole Neg 05/15/03 Laguna I Iills,City of Certificates of Participation(2003 Laguna I lills Civic Center Renovation 5,660,000 Sole Neg Project) 04/24/03 Salida Union School District Certificates of Participation(2003 Financing Project)Series A 2,620,000 Sole Neg 04/24/03 Salida Union School District Certificates of Participation(2003 Financing Project)Series B(Taxable) 1,880,000 Sole Neg 04/17/03 San Rafael joint Powers Financing Authority Lease Revenue Bonds,Series 2003(Public Parking Project) 7,605,000 Lead Comp 03/27/03 Pacifica,City of Certificates of Participation(2003 Public Safety Building Project) 2,630,000 Sole Neg j 03/11/03 Martinez,City of Certificates of Participation(2003 Refinancing Project)(Bank Qualified) 7,795,000 Lead Comp 03/05/03 Napa,County of 2003 Certificates of Participation(Capital Projects&Refunding) 32,350,000 Lead Comp 01/09/03 San Francisco Redevelopment Agency Lease Revenue Refunding Bonds,Series 2002(George R.Moseone Convention 67,670,000 Lead Comp Center) s 12/20/02 Cerritos Community College District Certificates of Participation,Series 2002 17,000,000 Sole Neg 12/01/02 California State Public Works Board Lease Revenue Bonds(Department of the Youth Authority)2002 Series B 5,465,000 Co-Mgr Neg (Various Correctional Projects) 12/01/02 California State Public Works Board Lease Revenue Bonds(Department of General Services)2002 Series A(Capitol 455,165,000 Co-Mgr Neg Fast End Complex-Blocks 171-174&225) 12/17/02 Downey,City of 2002 Certificates of Participation(Golf Course Financing Project) 9,910,000 Sole Ncg 11/20/02 California State Public Works Board GSA and Youth Authority 405,000,000 Co-Mgr Neg 12/10/02 Palmdale,City of Certificates of Participation(2002 Park Improvement and Avenue S 43,215,000 Sole Neg Construction Project) 11/12/02 Baldwin Park/Monrovia School Facilities GFA 2002 Lease Revenue Bonds 4,065,000 Sole Neg 10/31/02 Los Angeles,City of Certificates of Participation Municipal Improv Corp of Los Angeles(Real 43,160,000 Co-Mgr Comp Property Improvement Prog T)Series 2002 Page 4 of 7 Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Dated Date Issuer Issue Name Par Value S&Y Role Sale Type 11/06/02 San Jose Unified School District 2002 Refunding Certificates of Participation 24,754,371 Sole Neg 09/01/02 live Oak School District Certificates of Participation(2002 Capital Facilities Program) 4,000,000 Sole Comp 09/26/02 Alameda,City of 2002 Certificates of Participation(City Hall Refinancing Project) 11,370,000 Sole Neg 08/21/02 Escondido,City of Revenue Certificates of Participation 9,170,000 Sole Ncg 8,000,000 Sole Neg 07/29/02 Palm Springs,City of Taxable Var able Rate Demand Cert ficates of Part cipation,2002 Ser es A (Downtown Parking Project) cipation(2002 Silliman community Activity Center/Old 9,645,000 Co-Mgr Comp 08/01/02 Newark,City of Certificates of Parti Town Fire Station Project) 07/10/02 Campbell,City of 2002 Refunding Certificates of Participation(Civic Center Project) 11,930 843 Sole Neg I _ - 07/11/02 Buckeye Union High School District 2002 Certificates of Participation 12,580,000 Co-Mgr omp 06/05/02 Colton Public Financing Authority lease Revenue Bonds,2002 Series A(Big League Dreams Project) 7,200,000 Sole Comp 06/13/02 Cucamonga School District 2002 Certificates of Participation 14,74Q000 Sole Comp 05/01/02 Santa Ana Unified School District Certificates of Participation(2002 Financing Project) 5,180 000 Sole Neg 05/14/02 Brea Olinda Unified School District Refunding Certificates of Participation,Series A of 2002 33,560,000 Sole Ncg 04/O1/02 Franklin-McKinley School District Certificates of Participation,Series B 6,SOQ000 Sole Neg 04/01/02 Franklin-McKinley School District Certificates of Participation,Series A 6,500,000 Sole Neg 03/31/02 Chula Vista Elementary School District Certificates of Participation,2002 Flementary School Building Project 13,500,000 Lead Comp i 02/27/02 California State Public Works Board State Public Works Board Projects 187,705,000 Co-Mgr Neg 02/06/02 Thousand Oaks,Ciry of 2002 Certificates of Participation(Municipal Facilities Refunding and 19,655,000 FA Comp Improvements) 01/29/02 Palo Alto,City of Certificates of Participation(Civic Center Refinancing and Downtown Parking 3,500,000 FA Comp Improvements Project),Series 2002A(Tax-Exempt) 01/29/02 Palo Alto,City of Certificates of Participation(Civic Center Refinancing and Downtown Parking 3,555,000 FA Comp Improvements Project),Series 2002 B('Taxable) 01/01/02 Kern,County of Revenue Certificates of Participation,Series 2002(Solid Waste System 14,165,000 Co-Mgr Comp Improvements) 12/20/O1 Temecula,City of Certificates of Participation(2001 Capital Improvement Financing Project), 6,465,000 Sole Neg Bank Qualified 12/13/01 Lake Elsinore Unified School District 2001 Certificates of Participation(School Facilities Project) 5,400,000 Sole Neg 12/11/01 Escondido Joint Powers Financing Authority 2001 Lease Revenue Refunding Bonds(1992 Refunding) 22,420,000 Sole Neg Page 5 of 7 Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Dated Date Issuer Issue Name Pat Value S&Y Role Sale Type 12/01/01 Beverly Hills Public Financing Authority Lease Revenue Bonds,2001 Refunding Series A 10,380,000 Sole Neg 12/03/01 Los Angeles County Capital Asset Leasing Corporation Lease Revenue Bonds,2001 Series A(LAC-CAL Equipment Program) 30 020,000 Lead Comp 11/Ol/Ol Claremont Unified School District Lease Interests(2001 Financing Project) 13,000,000 Lead Comp 11/15/01 Pasadena,City of Certificates of Participation(Capital Improvement Refunding Project)Series 21,210,000 Sole Neg 2001 10/09/01 Carmel-by-the-Sea,City of Sunset Center Lease Revenue Certificates,Series 2001 9,900,000 Lead Comp 10/15/01 Santa Cruz Public Financing Authority California Lease Revenue Bonds,2001 Series B(Public Facilities Project) 11,900,000 Co.Mgr Comp 10/04/01 Danville,Town of Certificates of Participat on(2001 Capital Improvement Refinancing Project), 6,7001000 Sole Neg Bank Qualified ' 10/01/01 Palm Springs Financing Authority Lease Revenue Refunding Bonds,2001 Series A(Convention Center Project) 28,540,0 o e eg 09/01/01 Delta Diablo Sanitation District 2001 Revenue Certificates of Participation 10,505,000 Sole Neg 08/30/01 Selma Unified School District Cert ficates of Part cipat on(2001 Capital Financ ng Project) 6,235,000 Lead Comp j 08/21/01 San Jose Unified School District 2001 Certificates of Participation 16,620,000 FA Comp i 08/16/01 Monterey,County of Certificates of Participation(Master Plan Financing) 79,320,000 FA Neg 08/07/01 Natomas Unified School District Certificates of Participation(2001 Educational Facilities Project) 6,000,000 Sole Neg 19,000,000 Sole Neg 08/02/01 Laguna Hills,City of Cert ficates of Part cipation,2001 Community Center Financing Project 07/31/01 Murrieta Valley Unified School District Certificates of Participation,Series 2001 9,510,000 Lead Comp re 10,720,000 Sole Neg 07/24/01 Mountain View,City of 2001 Refunding Certificates of Participation(City I Tall/Communit}'Theat Complex Refinancing) 07/18/01 Modesto High School District Modesto City School District,Certificates of Part cipation(2001 Financing 7,260,000 Sole Neg Project) 07/01/01 San Jose Financing Authority Lease Revenue Bonds,Series 2001G(Taxable),Convention Center Refunding 4,580,000 Co-Mgr Comp Project 07/01/01 San Jose Financing Authority Lease Revenue Bonds,Series 2001 F(Convention Center Refunding Project) 186,150,000 Co-Mgr Comp j 06/27/01 Santa Clarita Community College District Certificates of Participation(College of the Canyons Improvement Project, 3,805,000 Sole Neg t Bank Qualified) 06/05/01 San Ysidro School District 2001 Certificates of Participation(School Facilities Project) 7,075,000 FA Comp 05/31/01 Empire Union School District 2001 Certificates of Partipation(Capital Improvements Project) 6,840,000 Sole Neg 04/01/01 Concord Joint Powers Financing Authority Lease Revenue Bonds(Concord Avenue Parking Structure)Series 2001 9,580,000 Sole Neg Page 6 of 7 Stone&Youngberg Underwriting Experience California Lease Revenue/Certificates of Participation Engagements Since 2001 Issue Name Paz Value S&Y Role Sale Type Dated Date Issuer 6,300,000 Sole Neg 04/01/01 Escondido Joint Powers Financing Authority 2001 Lease Revenue Bonds(Reidy Creek Project) rP 03/27/01 Santa Cruz,City of 2001 Refuse Enterprise Certificates of Participation 7,500,000 Lead Comp 03/27/01 Chula Vista Elementary School District Certificates of Participation(2001 Elementary School Building Project) 1QOOQ000 Co-Mgr Comp Certificates of Participation 2001 Educational Facilities Project) 4,060,000 Lead Comp 03/13/01 Buellton Union School District P ( 02/22/01 ABAG Finance Authority San Diego Jewish Academy,Revenue Certificates of Participation,Series 2001 5,000,000 PA PP 01/01/01 Contra Costa Public Financing Authority Lease Revenue Bonds(Various Capital Projects)2001 Series A 18,030,000 Co- gr Comp k f Page 7 of 7