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Bond Accountability Commission 2 Recommendations Page 51 Upfront Cost Comparison Analysis Based on Timing of Bonds Principal Amount

District

Underwriter's Discount

Discount as a %

Costs of Issuance Incl. Bond Ins.

Costs as a %

Total Upfront Costs

Costs as a %

2002 General Obligation Bonds 1 Cleveland Municipal School District 2 Olentangy Local School District 3 Beachwood City School District 4 Jonathan Alder Local School District 5 Northwest Local School District 6 West Clermont Local School District 7 Tuslaw Local School District 8 Ottawa-Glandorf Local School District 9 Edgerton Local School District 10 Kenston Local School District 11 Copley-Fairlawn City School District

$124,920,000 $39,635,000 $18,814,982 $24,999,958 $22,999,986 $11,075,000 $14,999,990 $13,485,000 $9,374,988 $6,725,000 $5,934,990

$312,410 $208,084 $94,075 $162,500 $180,500 unavailable $112,500 $114,623 $72,656 $40,014 unavailable

0.25% 0.53% 0.50% 0.65% 0.78% n/a 0.75% 0.85% 0.78% 0.60% n/a

$747,084 $150,147 $91,138 $117,646 $127,000 unavailable $101,288 $110,063 $89,067 $76,496 unavailable

0.60% 0.38% 0.48% 0.47% 0.55% n/a 0.68% 0.82% 0.95% 1.14% n/a

$1,059,493 $358,231 $185,213 $280,146 $307,500 $154,566 $213,788 $224,685 $161,723 $116,510 $120,033

0.85% 0.90% 0.98% 1.12% 1.34% 1.40% 1.43% 1.67% 1.73% 1.73% 2.02%

2004 General Obligation Bonds 1 Cleveland Municipal School District 2 Lakewood City School District 3 Columbus City School District 4 Olentangy Local School District 5 Otsego Local School District 6 Madeira City School District 7 Springboro Community City School District 8 Chillicothe City School Disdtrict 9 Archbold Area Local School District 10 Allen East Local School District

$125,000,000 $64,999,987 $164,000,000 $70,684,994 $18,399,999 $28,000,000 $61,500,000 $34,000,000 $7,364,997 $8,499,992

$342,500 unavailable $700,870 $353,425 $119,600 $196,000 unavailable $234,600 $51,555 $53,315

0.27% n/a 0.43% 0.50% 0.65% 0.70% n/a 0.69% 0.70% 0.63%

$559,901 unavailable $722,304 $362,464 $126,039 $224,740 unavailable $326,654 $75,485 $95,926

0.45% n/a 0.44% 0.51% 0.68% 0.80% n/a 0.96% 1.02% 1.13%

$902,401 $555,203 $1,423,174 $715,889 $245,639 $420,740 $994,866 $561,254 $127,040 $149,240

0.72% 0.85% 0.87% 1.01% 1.33% 1.50% 1.62% 1.65% 1.72% 1.76%

Cost of Bonds Based on Size Given that CMSD issued Bonds of relatively large principal amounts relative to the comparison districts, and to ensure that scale was not unduly influencing the cost comparison analysis, we undertook an additional analysis of large bond issuances. Comparisons were chosen based on being a large school district located in Ohio, having issued within a few years of CMSD, having issued approximately $100 million or more, and having Official Statements available on the MSRB’s EMMA website. The upfront cost information was obtained from the Official Statements of the comparison districts. If a particular category of upfront cost was not provided in the Official Statement, it is noted as “unavailable.” All of the comparison districts obtained bond insurance. As shown in the table below, “Upfront Cost Comparison Analysis Based on Size of Bonds,” largely the same conclusions can be reached— •

CMSD did well in obtaining low costs from underwriters. The underwriter’s discounts obtained by CMSD typically were slightly

BAC2 Recomendations Final 04062010  
BAC2 Recomendations Final 04062010  
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