Presentation to : CML Workshop Financing Public Improvements January 30, 2009

1. Jason Simmons Vice President Investment Banker 303.820.5873 william.j.simmons@pjc.com Helen Cregger Vice President Investment Banker 303.820.5856 helen.x.cregger@pjc.com Michael Lund Vice President Investment Banker 303.820.5872 michael.p.lund@pjc.com Piper Jaffray & Co. Public Finance Services 1200 17th St., Suite 1250 Denver, CO 80202 Presentation to : CML Workshop Financing Public Improvements January 30, 2009 Top Tips for Issuing Municipal Bonds Since 1895. Member SIPC and FINRA.

2. 1. DETERMINE THE END GOAL • What is final project? • New Recreation Center • Water Treatment Facility • Detention Facility • Commercial or Residential Development

3. 2. PLAN AHEAD • Start early! • Many projects take a few years from initial discussions to the bond issuance process. • Start laying the ground work for rate increases for enterprise revenue bonds if necessary. • May need to work in election for voter authorized projects. • Coordinate bond issuance with start of construction.

4. 3. FAMILIARIZE YOURSELF WITH PROCESS • Gain an understanding of the bond issuance process by utilizing available resources • CML Workshops and Publications • GFOA Workshops and Recommended Practices • Other Municipalities • Bond Community

5. 4. ASSEMBLE YOUR TEAM EARLY • Get the professionals on board early to help in the decision process • Determine composition of the team • Do you want do use a Financial Advisor? • Do you envision a competitive or negotiated sale? • Will you have a Senior Managing Underwriter and Co-Managers? • Will you use the same firm as both Bond Counsel and Disclosure Counsel?

6. 5. EVALUATE FINANCING OPTIONS

7. 6. DEVELOP A FINANCING PLAN • Create a financial model and timetable that works for you • Go to market when you need the money

8. 7. BE AWARE OF MARKET CONDITIONS • Do not want to be surprised at the outcome • Ask you underwriter or financial advisor to give you frequent market updates. • What is the overall level of interest rates? • What other issues are have been completed recently or are on the calendar? • What are investors thoughts about insurance? • How will investors view your security and ratings?

9. 8. UNDERSTAND OBLIGATIONS • Spend down requirements of bond proceeds • Continuing Disclosure 15 c-2-12 • A study released in 2008* found that more than half of the municipal bonds sold between 1996-2005 have been delinquent in filing financial disclosures. • Bond covenants • Rate maintenance • Additional bonds tests • Ratings require some monitoring * Source: Bond Buyer Wednesday, September 3, 2008

10. 9. EVALUATE PROCESS • It is difficult to evaluate the process based on final borrowing costs. • Did you work well with the financing team and did they work well together? • Did you feel your story was accurately reflected in the rating process? • What would you change next time?

11. 10. ENJOY A JOB WELL DONE • The bond issuance process is a time consuming task that is accomplished in addition to all of your other day to day duties so take time to celebrate upon a successful closing.

12. TOP TEN TIPS • Determine the End Goal • Plan Ahead • Familiarize Yourself with the Process • Assemble Your Team Early • Evaluate Financing Options • Develop a Financing Plan • Be Aware of Market Conditions • Understand Obligations • Evaluate the Process • Enjoy a Job Well Done