m&o levy planning october 29, 2012 jon gores senior vice president (206) 389-4043...

M&O Levy Planning

October 29, 2012

Jon GoresSenior Vice President(206) [email protected]

Davenport School District Davenport School District No. 207No. 207


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Discussion Topics

Election Results

M&O Levy Scenarios


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Washington State Election Results—School Districts Only

M&O Levies: 45 passed and 2 failed

Capital Projects Levies: 15 passed and 2 failed

Transportation Levies: N/A

Bond Authorizations: 5 passed and 28 failed

2011 Election Results

Source: Washington Secretary of State: Election and Voting website and individual County Auditor websites.

2012 Election Results M&O Levies: 164 passed and 6 failed

Capital Projects Levies: 30 passed and 3 failed

Transportation Levies: N/A

Bond Authorizations: 10 passed and 6 failed


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Voting Patterns

64.8%67.6% 66.7% 66.4% 66.3% 65.0%

66.0%69.3%

62.1%63.7% 64.2%

62.5% 62.7%65.2%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average

M&O Levies - StatewideAverage Approval Rates

as of August 2012


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Voting Patterns

80.9% 83.7%86.9% 85.9% 83.8%

70.6%

87.2%

94.1%97.4% 97.8% 98.0%

93.9%96.5%

89.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average

M&O Levies - StatewideYearly Passage Rates

As of August 2012


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Election History – Davenport SD

Date Percentage Year Amount Date Percentage Year Amount Date Percentage Year Amount

2/9/2010 57.37% 2011 $945,000 3/10/2009 64.11% 2009 $7,320,000 3/11/2008 63.00% 2009 $250,000

2012 $975,000

2013 $998,000 Date Percentage Year Amount

2/6/2001 64.72% 2001 $3,500,000

Total $2,918,000

Date Percentage Year Amount $250,000

2/7/2006 62.43% 2007 $675,064

2008 $695,871

2009 $716,748

2010 $738,250

Total $2,825,933

Date Percentage Year Amount

2/3/2004 68.15% 2005 $640,000

2006 $640,000

Total $1,280,000

Date Percentage Year Amount

2/5/2002 61.63% 2003 $610,000

2004 $610,000

Total $1,220,000

Bond Election Capital Projects ElectionM&O Election


Voting Patterns7

43%

38%

41%

24%

28%

38%

53%

34%

45%46%

37%

45%

38%

44%45%

40%

23%

45%

47%

15%

56%

199286

199373

199499

199562

199678

199778

199855

199959

200040

200139

200243

200353

200434

200534

200660

200750

200835

200931

201019

201133

201216

Bond Issues Passed by Year (Years 1992 through August 2012, inclusive)Schools Only

Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.Source: State of Washington, Office of Superintendent of Public Instruction.


Voting Patterns8

51% 52%

36% 37%33%

27% 27%

February316

March149

April69

May279

August3

September109

November136

Bond Issues Passed by Month (Years 1992 through August 2012, inclusive) Schools Only

Source: State of Washington, Office of Superintendent of Public Instruction.


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Assessed Value

Year Historical Bond AV New ConstructionBond Levy Rate/$1000 % change

2003 157,917,812 2,359,490 $3.21 4.6%2004 161,724,267 2,941,470 $3.18 2.4%2005 177,222,751 3,087,540 $2.68 9.6%2006 180,348,976 2,500,300 $2.77 1.8%2007 187,357,387 3,564,350 $2.72 3.9%2008 197,455,146 4,169,410 $2.58 5.4%2009 206,697,774 4,717,350 $1.58 4.7%2010 213,557,349 1,702,797 $3.16 3.3%2011 225,969,342 1,437,600 $2.99 5.8%2012 229,870,160 1,630,701 $2.97 1.7%

5 year Compound Annual Growth Rate (2007-2012): 4.2%10 year Compound Annual Growth Rate (2002-2012): 4.3%

Davenport School District No. 207Assessed Value History


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Year AVAV Growth

RateM&O Levy

Amount M&O Levy

Rate/$1000 Year AVAV Growth

RateM&O Levy

Amount M&O Levy

Rate/$10002013 235,263,887 2.35% 998,000 4.24 2013 235,263,887 2.35% 998,000 4.242014 239,969,165 2.00% 998,000 4.16 2014 239,969,165 2.00% 1,017,469 4.242015 244,768,548 2.00% 998,000 4.08 2015 244,768,548 2.00% 1,037,819 4.242016 249,663,919 2.00% 998,000 4.00 2016 249,663,919 2.00% 1,058,575 4.242017 254,657,197 2.00% 998,000 3.92 2017 254,657,197 2.00% 1,079,747 4.24

Total (2014-2017) 3,992,000 Total (2014-2017) 4,193,609

Year AVAV Growth

RateM&O Levy

Amount M&O Levy


RateM&O Levy

Amount M&O Levy

Rate/$10002013 235,263,887 2.35% 998,000 4.24 2013 235,263,887 2.35% 998,000 4.242014 239,969,165 2.00% 1,031,867 4.30 2014 239,969,165 2.00% 1,023,000 4.262015 244,768,548 2.00% 1,052,505 4.30 2015 244,768,548 2.00% 1,048,000 4.282016 249,663,919 2.00% 1,073,555 4.30 2016 249,663,919 2.00% 1,073,000 4.302017 254,657,197 2.00% 1,095,026 4.30 2017 254,657,197 2.00% 1,098,000 4.31

Total (2014-2017) 4,252,953 Total (2014-2017) 4,242,000

Year AVAV Growth

RateM&O Levy

Amount M&O Levy


RateM&O Levy

Amount M&O Levy

Rate/$10002013 235,263,887 2.35% 998,000 4.24 2013 235,263,887 2.35% 998,000 4.242014 239,969,165 2.00% 1,027,940 4.28 2014 239,969,165 2.00% 1,048,000 4.372015 244,768,548 2.00% 1,058,778 4.33 2015 244,768,548 2.00% 1,098,000 4.492016 249,663,919 2.00% 1,090,542 4.37 2016 249,663,919 2.00% 1,148,000 4.602017 254,657,197 2.00% 1,123,258 4.41 2017 254,657,197 2.00% 1,198,000 4.70

Total (2014-2017) 4,300,518 Total (2014-2017) 4,492,000

Year AVAV Growth

RateM&O Levy

Amount M&O Levy


RateM&O Levy

Amount M&O Levy

Rate/$10002013 235,263,887 2.35% 998,000 4.24 2013 235,263,887 2.35% 998,000 4.242014 239,969,165 2.00% 1,073,000 4.47 2014 239,969,165 2.00% 1,098,000 4.582015 244,768,548 2.00% 1,148,000 4.69 2015 244,768,548 2.00% 1,198,000 4.892016 249,663,919 2.00% 1,223,000 4.90 2016 249,663,919 2.00% 1,298,000 5.202017 254,657,197 2.00% 1,298,000 5.10 2017 254,657,197 2.00% 1,398,000 5.49

Total (2014-2017) 4,742,000 Total (2014-2017) 4,992,000

Scenario 4: Increase levy amount $25,000/yr

Scenario 5: 3% growth - Levy Amount/yr

Scenario 2: $4.24 M&O rate/yr

Scenario 6: Increase levy amount $50,000/yr

Scenario 1: $998,000/yr

Scenario 3: $4.30 M&O rate/yr

Scenario 8: Increase levy amount $100,000/yrScenario 7: Increase levy amount $75,000/yr


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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2013 2014 2015 2016 2017Tax Year

Davenport School District No. 207 - Projected Tax RatesScenario 2: $4.24 M&O Rate/Year

M&O Rate 2009 Bonds 2010 Bonds


Increase in Property Values Will Not Increase School District Tax Collections

Changes in property values don’t change the amount of taxes authorized

Local school taxes can only be increased by a vote of the people

Changing property values will change tax rates, but not tax collections

Year Home Value Tax Rate Tax Bill

XYZ School District Home Value 2011 $100,000 $5.00/$1,000 $500

Assume a 20% increase in Assessed Value for XYZ School District

#1: 20% increase 2012 $120,000 $4.17/$1,000 $500

#2: 10% increase 2012 $110,000 $4.17/$1,000 $459

#3: 30% increase 2012 $130,000 $4.17/$1,000 $542

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Neither this material nor any of its contents may be disclosed, sold, or redistributed, electronically or otherwise, without prior written consent of Davidson Companies. The information presented herein is based on public information we believe to be reliable, prevailing market conditions, as well as our views at this point in time. We make no representation or warranty with respect to the accuracy or completeness of this material. Past performance is not necessarily indicative of future results. Davidson Companies does not assume any liability for any loss which may result from the reliance by any person upon such material. We make no representations regarding the legal, tax, regulatory, or accounting implications of entering into a Transaction.

Required Disclosure Pursuant to MSRB Rule G-23: An underwriter’s primary role will be to purchase as principal, or arrange for the placement of the securities in a commercial arm’s length transaction with the issuer, and may have financial and other interests that differ from those of the issuer. In its capacity as underwriter and not as financial advisor, an underwriter may provide incidental financial advisory services at the issuer’s request, including advice regarding the structure, timing, terms and other similar matters concerning the issuance. However, an underwriter does not assume any financial advisory or fiduciary responsibilities with respect to the issuer.

m&o levy planning october 29, 2012 jon gores senior vice president (206) 389-4043...

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