Loading...
HomeMy WebLinkAboutItem 2D: Res./EWEB Refund.BndEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of Resolution 4844 Authorizing the Issuance and Sale of Water Utility System Revenue Bonds in the Aggregate Principal Amount of Not to Exceed Twenty-Two Million Five Hundred Thousand Dollars ($22,500,000) for the Purpose of Advance Refunding or Defeasing Certain Outstanding Water Utility System Revenue Bonds; and Providing for Certain Details and Related Matters Meeting Date: June 27, 2005 Agenda Item Number: 2D Department: Central Services Staff Contact: Dee Ann Hardt www. cl. eugene, or. us Contact Telephone Number: 682-5041 ISSUE STATEMENT The Eugene Water and Electric Board (EWEB) is requesting authority to proceed with the refinancing of the Series 2000 Water Revenue Bonds in order to achieve interest cost savings. Unexpended bond proceeds of the Series 2002 Water Revenue Bonds will also be used to reduce the outstanding principal amount of the bonds. BACKGROUND On September 13, 1999, the City Council adopted Resolution No. 4601 authorizing EWEB to issue up to $36 million of Water Utility System Revenue Bonds to improve the water utility system. Pursuant to that resolution, EWEB subsequently issued the Series 2000 Water System Revenue Bonds in the amount of $21,405,000. There is currently $19.5 million outstanding of these bonds. On April 8, 2002, the City Council adopted Resolution No. 4712 authorizing EWEB to issue up to $11 million for the purpose of developing and constructing a ground water backup water supply. Pursuant to that resolution, EWEB subsequently issued the Series 2002 Water System Revenue Bonds in the amount of $10 million. Market interest rates are favorable at the current time. An advance refunding of the Series 2000 bonds is projected to provide debt service savings. In addition to proceeding with a refunding for interest rate savings, EWEB would also like to apply unexpended bond proceeds to reduce the amount of Series 2002 bonds outstanding. EWEB drilled several test wells to demonstrate the availability of ground water in sufficient quantities to obtain 20 million gallons per day of sustained production. While the test wells proved sufficient water at the well sites, evaluation of the test results also indicated that the shallower wells of surrounding water districts were significantly affected. This has prompted an extended negotiation over water rights in the area surrounding the proposed well field. L:\CMO\2005 Council Agendas\M050627\S0506272D.doc Based on the current status of the water rights negotiations, EWEB does not believe that it will need to spend the additional bond proceeds for the originally intended purpose. Therefore, EWEB proposes using $8 million ofunexpended bond proceeds to reduce the amount of debt outstanding. The combination of a refunding at lower interest rates plus applying unexpended bond proceeds to reduce the amount of debt outstanding is expected to save approximately $600,000 annually in debt service or about 1% of the retail water rates. One of the requirements for issuance of advance refunding bonds is that the City Council approve a plan of refunding. EWEB has prepared such a plan and it is included as Attachment B. RELATED CITY POLICIES None. COUNCIL OPTIONS The council may approve or deny the request to authorize refunding of these bonds. CITY MANAGER'S RECOMMENDATION The City Manager recommends approval of the proposed resolution authorizing the refunding of EWEB Water System Revenue Bonds in an amount not to exceed $22,500,000. Note that the amount included in the bond resolution reflects the application of $8 million ofunexpended bond proceeds to reduce the amount of debt outstanding. SUGGESTED MOTION Move to approve Resolution 4844 authorizing the issuance and sale of Water Utility System Revenue Bonds in the aggregate principal amount of not to exceed twenty-two million five hundred thousand dollars ($22,500,000) for the purpose of advance refunding or defeasing certain outstanding Water Utility System Revenue Bonds; and providing for certain details and related matters. ATTACHMENTS A. Proposed Resolution B. Plan of Refunding FOR MORE INFORMATION Staff Contact: Dee Ann Hardt, Finance Director Telephone: 682-5041 Staff E-Mail: Deeann. Hardt~ci. eugene, or.us EWEB Contact: Jim Origliosso, Treasurer EWEB Telephone: 484-3753 EWEB E-Mail: Jim. Origliosso~eweb.eugene.or.us L:\CMO\2005 Council Agendas\M050627\S0506272D.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF WATER UTILITY SYSTEM REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED TWENTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($22,500,000) FOR THE PURPOSE OF ADVANCE REFUNDING OR DEFEASING CERTAIN OUTSTANDING WATER UTILITY SYSTEM REVENUE BONDS; AND PROVIDING FOR CERTAIN DETAILS AND RELATED MATTERS The City Council of the City of Eugene finds that: A. On September 13, 1999, the City Council adopted Resolution No. 4601 to authorize the City of Eugene (the "City"), acting through the Eugene Water & Electric Board ("EWEB"), to issue water utility revenue bonds in an aggregate principal amount of not to exceed $36,000,000, for the purpose of providing ~unds for the acquisition of real and personal property, to develop, construct, equip and improve the City's water utility system (the "Water Utility System") which is operated by EWEB, and all equipment and appurtenances necessary, useful or convenient thereto (the "2000 Project") and on September 19, 1999, there was published the Notice of Revenue Bond Authorization in The Register-Guard, a newspaper of general circulation within the geographical boundaries of the City and sixty (60) days elapsed since the publication of such Notice of Revenue Bond Authorization and no voters residing within the geographical boundaries of the City filed a petition with the City asking to have the question whether to issue the water utility system revenue bonds referred to a vote (the "1999 URBA Authorization"). B. Pursuant to the 1999 URBA Authorization, the City, acting by and through EWEB, issued its City of Eugene, Oregon, Water Utility System Revenue Bonds, Series 2000, in the original aggregate principal amount of $21,405,000 (the "Series 2000 Bonds"). C. On April 8, 2002, the City Council adopted Resolution No. 4712 to authorize the City, acting through EWEB, to issue water utility revenue bonds in an aggregate principal amount of not to exceed $11,000,000, for the purpose of providing funds for the development, construction and improvement of a ground water backup supply system (the "2002 Project") as part of a long-term water supply plan approved by EWEB to improve and expand the Water Utility System and on April 16, 2002, there was published the Notice of Revenue Bond Authorization in The Register-Guard, a newspaper of general circulation within the geographical boundaries of the City and sixty (60) days elapsed since the publication of such Notice of Revenue Bond Authorization and no voters residing within the geographical boundaries of the City filed a petition with the City asking to have the question whether to issue the water utility system revenue bonds referred to a vote (the "2002 URBA Authorization"). D. Pursuant to the 2002 URBA Authorization, the City, acting by and through EWEB, issued its City of Eugene, Oregon, Water Utility System Revenue Bonds, Series 2002, in the original aggregate principal amount of $10,000,000 (the "Series 2002 Bonds"). E. ORS {}288.605 to {}288.695 authorize the City to issue bonds without an election to refund outstanding bonds, including advance refunding bonds, in order to effect a favorable reorganization of debt and/or a net present value savings and to issue bonds to refund revenue bonds that were previously issued in accordance with the Uniform Revenue Bond Act without further implementation of the procedures prescribed in ORS {}288.815. F. The Series 2000 Bonds are callable as to principal and interest on August 1, 2010 without premium and the Series 2002 Bonds are callable as to principal and interest on August 1, 2012 without premium, and a favorable reorganization of debt and/or a net present value savings may be achieved by issuing refunding bonds for the purpose of advance refunding or defeasing all or a portion of the outstanding Series 2000 Bonds and/or the Series 2002 Bonds and thereby calling such refunded or defeased bonds on their earliest call date, August 1, 2010 or August 1, 2012, respectively. G. EWEB has requested the City Council to adopt this Resolution authorizing and setting the terms for the issuance and sale of not to exceed $22,500,000 principal amount of bonds (the "Refunding Bonds") which proceeds, together with available bond proceeds, will provide funds for the advance refunding, defeasance, redemption or payment of all or a portion of the outstanding Series 2000 Bonds and/or the Series 2002 Bonds on August 1, 2010 or August 1, 2012, respectively, and to pay the costs of issuance of the Refunding Bonds. H. ORS {}288.620 requires that the Oregon State Treasurer (the "State Treasurer") review and approve a refunding plan prior to the sale and issuance of advance refunding bonds such as the Refunding Bonds. I. EWEB, by resolution, has undertaken to cause to be prepared a plan showing that EWEB's estimated Water Utility System revenues are sufficient to pay the estimated debt service on the Refunding Bonds authorized by this Resolution. BE IT RESOLVED BY THE CITY CO[INCIL OF THE CITY OF E[IGENE, A M[INICIPAL COPORATION OF THE STATE OF OREGON AS FOLLOWS: Section 1. Authorization of Refunding Bonds; Purpose of Issue; Conditions of Issuance. Based on the above findings, the Council hereby authorizes EWEB, on behalf of the City, to issue and sell "City of Eugene, Oregon Water Utility System Revenue Refunding Bonds, Series 2005" (the "Refunding Bonds") in one or more series, in the aggregate principal amount of not to exceed $22,500,000, subject to the following terms and conditions prescribed by the City Council: (a) The Refunding Bonds of each series shall: (i) mature not later than the last scheduled maturity of the bonds to be refunded; (ii) be sold at par or with a net original issue discount/premium that does not exceed one hundred and seven percent (107%) of the aggregate principal amount thereof, (iii) have an effective interest rate of not to exceed six percent (6.00%) per annum; and (iv) not exceed $22,500,000 in total principal amount. (b) The proceeds of the Refunding Bonds shall be used only for the following purposes: An amount of not to exceed $22,500,000 shall be used for the purpose of advance refunding or defeasing all or a portion of the outstanding Series 2000 Bonds and/or the Series 2002 Bonds on August 1, 2010 or August 1, 2012, respectively, provided that such refunding S485547.7 2 will result in a favorable reorganization of debt and/or a net present value savings of at least 3% in accordance with Oregon Administrative Rule 170-062-0000 and to pay related costs of issuance of the Refunding Bonds. Section 2. Delegation of Authority for Terms of Refunding Bonds; Provisions for Issuance. Pursuant to ORS {}288.825(4)(a), ORS {}288.520(4), ORS {}288.540 and ORS {}288.545, EWEB, or any individual designated by EWEB, is hereby authorized and directed to determine, with respect to the Refunding Bonds, the form of bond and series designation, the manner of disbursement of proceeds of the Refunding Bonds, the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a variable or adjustable interest rate, denominations, form and authorized signatory and other terms and conditions of the Refunding Bonds because the same cannot be determined by the Council at this time. Prior to the issuance of the Refunding Bonds, EWEB shall: (i) prepare a plan showing that the estimated Water Utility System revenues are sufficient to pay the estimated debt service on the Refunding Bonds; (ii) adopt a bond resolution and provide a copy of such resolution to the City; and (iii) provide to the City a resolution determining that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of the Refunding Bonds, exist, have happened and have been performed in due time, form and manner as required by the Constitution and statutes of the State of Oregon, the Charter of the City of Eugene and this Resolution. Additionally, prior to the issuance of any Refunding Bonds, EWEB shall comply with Section 8 of this Resolution. Section 3. Statement on Form of Refunding Bond. All Refunding Bonds shall include a statement on their face to the effect: (a) That they do not in any manner constitute a general obligation of EWEB or of the City, or create a charge upon the tax revenues of the City, or upon any other revenues or property of the City, or property of EWEB, but are charges upon and are payable solely from the revenues of the Water Utility System operated by EWEB, or any portion thereof, pledged to the payment thereof; and (b) That the holders thereof may look for repayment only to the revenues of the Water Utility System which are pledged for the payment thereof, and may not directly or indirectly be paid or compensated through the property of the City, or EWEB, or by or through the taxing power of the City. Section 4. Refunding Bonds Payable Solely from Revenues. The Refunding Bonds shall not be general obligations of the City, nor a charge upon its tax revenues, but shall be payable solely from the revenues and funds which EWEB pledges to the payment thereof pursuant to the 1999 URBA Authorization, the 2002 URBA Authorization, the provisions of City Council Resolutions 4601 and 4712, ORS {}288.825 and in accordance with this Resolution. Section 5. Refunding Bonds Reporting. EWEB shall submit to the City by May 1 of each year the following annual reports commencing after the first sale of any Refunding Bonds or other evidences of indebtedness hereunder and each year thereafter until the Refunding Bonds have been paid and retired: (a) A report on the funds for each series of Refunding Bonds describing the funds established, the amounts in each fund, expenditure from each fund, the manner in which S485547.7 3 the monies in each fund have been invested, the income from such investments and the application of such income; and (b) A report on Refunding Bond payments describing amounts paid and amounts scheduled to be paid and the source of such payments. If the contents of the reports required by subsections (a) and (b) above are included in the yearly audit report of EWEB, then EWEB may comply with this section 5 by transmitting a copy of its yearly audit report to the City. Section 6. Appointment of Professionals. EWEB is authorized to appoint bond counsel, disclosure counsel, financial advisors, a registrar, paying agent and escrow agent and any other professional assistance that EWEB determines is necessary or convenient to accomplish the issuance and sale of any or all of the Refunding Bonds. Section 7. Official Statement; Sale Documents. EWEB or any party designated by EWEB is authorized to prepare and distribute or direct the preparation and distribution of one or more preliminary official statement(s) or other disclosure document(s) for any of the Refunding Bonds or in connection with a preliminary official statement or other disclosure document for any other bonds, as determined to be necessary by EWEB, to obtain bond insurance or other credit enhancement or commitments therefor, if required, to obtain a rating on any or all of the Refunding Bonds from Moody's Investors Service, Inc., Standard & Poor's and/or Fitch Ratings, if required, and to issue and publish such notices of sale of the Refunding Bonds as may be necessary or required to accomplish the public competitive sale of the Refunding Bonds in accordance with this Resolution. Section 8. Approval of Plan of Advance Refunding and Submission to Oregon State Treasurer for Review and Approval. The Council hereby approves the advance refunding plan for the advance refunding or defeasance of all or a portion of the Series 2000 Bonds and/or the Series 2002 Bonds and the issuance of the Refunding Bonds (the "Refunding Plan") presented to the Council that was prepared by EWEB's independent financial advisor, Seattle Northwest Securities Corp., in compliance with Oregon Administrative Rule 170-062-0000. Pursuant to ORS {}288.620, the Council hereby directs that the Refunding Plan be submitted to the State Treasurer for review and approval. In accordance with ORS {}288.620, the Refunding Bonds may not be sold until the State Treasurer has authorized or is deemed to have authorized the sale of such Refunding Bonds. Section 9. Effective Date of Resolution. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted by the City Council this __ day of__., 2005. S485547.7 4 City of Eugene, Oregon (Eugene Water & Electric Board) Preliminary_ Advance Refunding Plan June 16, 2005 June 16, 2005 Ms. Laura Lockwood-McCall Debt Management Division Oregon State Treasury 350 Winter Street NE 100 Labor and Industry Building Salem, Oregon 97310 Dear Laura: On behalf of Eugene Water & Electric Board ('EWEB"), I am hereby requesting preliminary approval of an Advance Refunding Plan for the Water Utility System Revenue Bonds, Series 2000. Purpose of Issue EWEB seeks approval of its advance refunding plan for debt service savings purposes. Bonds to be Refunded The Bonds to be refunded are the Utility's outstanding Water Utility Revenue Bonds, Series 2000, dated June 1, 2000. The Series 2000 Bonds are subject to optional redemption on August 1, 2011, at a price of par. The refunded Bonds will be escrowed to their first call date. Refunding Obligations The Refunding Bonds will be sold as a single series, expected to mature August 1, 2011 through August 1, 2030. Final decision on the terms of the Refunding Bonds will be supplied in the final plan. Competitive bidding of the Refunding Bonds is tentatively scheduled for July 26, 2005 with closing occurring on August 3, 2005. Personnel The following personnel are involved in this transaction: Issuer Jim Origliosso Telephone: (541) 484-3753 e-marl: jim.origliosso@eweb.eugene.or.us Cathy Bloom Telephone: (541) 344-6311 e-marl: cathy.bloom@eweb.eugene.or.us Garilyn Johnston Telephone: (541) 344-6311 e-mail: garilyn.johnston@eweb.eugene.or.us Tammy Denouden Telephone: (541) 684-5843 e-marl: tammy.denouden@eweb.eugene.or.us Eugene Water & Electric Board 500 East 4th Avenue Eugene, Oregon 97440-2148 Bond Counsel Mr. Chip Eady, Esq. Phone: (415) 984-8460 e-marl: ceady@nixonpeabody.com Mr. Larry Jensen, Esq. Phone: (415) 984-8264 e-marl: ljensen@nixonpeabody.com Ms. Etta Herbach, Esq. Phone: (415) 984-8274 e-mail: eherbach@nixonpeabody.com Ms. Katy McNeil, Paralegal Phone: (415) 984-8304 e-marl: kmcnefl@nixonpeabody.com Nixon Peabody LLP Two Embarcadero Center 2700 FAX: (866) 382-8937 San Francisco, CA 94111-3996 Disclosure Counsel James Shannon Telephone: (503) 226-6400 e-marl: jshannon@mershanlaw.com Pearl Petredis Telephone:: (503) 226-6400 e-mail: ppetredis@mershanlaw.com Mersereau & Shannon, LLP FAX: (503) 226-0383 One S.W. Columbia, Suite 1600 Portland, Oregon 97258 Financial Advisor Christine Pihl Telephone: (206) 628-2876 e-marl: cpihl@snwsc.com Jeb Spengler Telephone: (206) 628-5491 e-marl: jspengler@snwsc.com Seattle-Northwest Securities Corporation FAX No.: (206) 343-2103 1420 Fifth Ave, Suite 4300 Seattle, Washington 98101 Underwriter (Competitive Sale) Escrow Agent/Paying Agent Beth Moyer Telephone: (503) 886-1366 e-mail: beth.a.moyer@wellsfargo.com Wells Fargo Bank, National Association FAX No.: (503) 886-3300 1300 S.W. Fifth Avenue, 11th Floor Portland, OR 97201 Verification Agent Ms. Stephanie Seroogy Telephone: (612) 677-5109 e-mail: Stephanie.Seroogy@gt.com Grant Thornton LLP FAX No.: (612) 332-8984 500 Pillsbury Center North 200 South Sixth Street Minneapolis, MN 55402 Escrow Account The Escrow will be funded with State and Local Government Securities or Open Market Treasury Securities. Enclosures Enclosed you will find the following: · the numerical analysis for the outstanding issue and the Refunding Bonds; and · estimated costs of issuance associated with the Refunding Bonds. The following have already been sent to you under separate cover: · a copy of the draft preliminary official statement; · $200.00 advance refunding application fee; · a copy of the financial advisor's contract; · a copy of the resolution authorizing the submission of this plan. Copies of the bond counsel opinion, escrow agreement, final official statement and escrow verification report will be sent following the sale. Please do not hesitate to contact me if you have questions or need additional information. Sincerely, Jeb Spengler Senior Associate CC: Mr. Jim Origliosso Ms. Cathy Bloom Ms. Garilyn Johnston Ms. Tammy Denouden Mr. Chip Eady Mr. Jim Shannon Ms. Beth Moyer Ms. Christine Pihl Ms. Stephanie Seroogy Eugene Water & Electric Board Preliminary Advance Refunding Plan Table of Contents 1) Refunding Obligations 2) Escrow Reports 3) Refunded Bonds Refunding Obligations · Summary of Refunding Results · Sources and Uses of Funds · Costs of Issuance · Savings · Bond Pricing · Refunding Bond Debt Service SUMMARY OF REFUNDING RESULTS Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Dated Date 08/02/2005 Delivery Date 08/02/2005 Arbitrage yield 4.332745% Escrow yield 3.824565% Bond Par Amount 12,320,000.00 True Interest Cost 4.586335% Net Interest Cost 4.667402% All-In TIC 4.711093% Average Coupon 4.894113 % Average Life 17.033 Par amount of refunded bonds 19,470,000.00 Average coupon of refunded bonds 5.806696% Average life of refunded bonds 17.316 PV of prior debt to 08/02/2005 (~ 4.332745% 22,826,386.08 Net PV Savings 1,099,478.73 Percentage savings of refunded bonds 5.647040% Percentage savings of refunding proceeds 8.539102% Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 1 SOURCES AND USES OF FUNDS Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Dated Date 08/02/2005 Delivery Date 08/02/2005 Sources: Bond Proceeds: Par Amount 12,320,000.00 Premium 555,811.60 12,875,811.60 Other Sources of Funds: 2002 Bond Proceeds 8,640,486.15 21,516,297.75 Uses: Refunding Escrow Deposits: Cash Deposit 1.17 SLG Purchases 21,175,881.00 21,175,882.17 Delivery Date Expenses: Cost of Issuance 158,350.00 Underwriter's Discount 80,080.00 Bond Insurance (. 35%) 79,064.46 Surety Bond (2.5%) 19,725.00 337,219.46 Other Uses of Funds: Additional Proceeds 3,196.12 21,516,297.75 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 2 COST OF ISSUANCE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Cost of Issuance $/1000 Amount Bond Counsel (Est.) 6.08766 75,000.00 Moody's Rating Fee 0.86039 10,600.00 S&P Rating Fee 0.64529 7,950.00 Escrow Verification 0.20292 2,500.00 Escrow Trustee 0.24351 3,000.00 Paying Agent 0.04870 600.00 OS Printing & Mailing 0.32468 4,000.00 State Treasurer 0.42208 5,200.00 Financial Advisor 3.85552 47,500.00 Financial Adivsor Expenses 0.16234 2,000.00 12.85308 158,350.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 3 SAVINGS Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Present Value Prior Refunding Annual to 08/02/2005 Date Debt Service Debt Service Savings Savings ~ 4.3327453% 02/01/2006 561,113.75 292,357.97 268,755.78 263,088.31 08/01/2006 561,113.75 293,991.25 267,122.50 535,878.28 255,944.75 02/01/2007 561,113.75 293,991.25 267,122.50 250,517.61 08/01/2007 561,113.75 293,991.25 267,122.50 534,245.00 245,205.54 02/01/2008 561,113.75 293,991.25 267,122.50 240,006.12 08/01/2008 561,113.75 293,991.25 267,122.50 534,245.00 234,916.94 02/01/2009 561,113.75 293,991.25 267,122.50 229,935.68 08/01/2009 561,113.75 293,991.25 267,122.50 534,245.00 225,060.04 02/01/2010 561,113.75 293,991.25 267,122.50 220,287.78 08/01/2010 561,113.75 293,991.25 267,122.50 534,245.00 215,616.72 02/01/2011 561,113.75 293,991.25 267,122.50 211,044.71 08/01/2011 1,111,113.75 688,991.25 422,122.50 689,245.00 326,433.35 02/01/2012 546,401.25 287,118.25 259,283.00 196,255.61 08/01/2012 1,126,401.25 697,118.25 429,283.00 688,566.00 318,041.48 02/01/2013 530,741.25 279,758.75 250,982.50 182,001.74 08/01/2013 1,140,741.25 699,758.75 440,982.50 691,965.00 313,000.82 02/01/2014 513,966.25 272,030.75 241,935.50 168,079.89 08/01/2014 1,158,966.25 712,030.75 446,935.50 688,871.00 303,915.62 02/01/2015 496,067.50 263,758.75 232,308.75 154,620.04 08/01/2015 1,176,067.50 718,758.75 457,308.75 689,617.50 297,921.43 02/01/2016 477,027.50 255,000.00 222,027.50 141,576.45 08/01/2016 1,197,027.50 730,000.00 467,027.50 689,055.00 291,486.69 02/01/2017 456,777.50 243,125.00 213,652.50 130,519.76 08/01/2017 1,216,777.50 743,125.00 473,652.50 687,305.00 283,217.55 02/01/2018 435,307.50 230,625.00 204,682.50 119,793.45 08/01/2018 1,235,307.50 750,625.00 484,682.50 689,365.00 277,652.58 02/01/2019 412,507.50 217,625.00 194,882.50 109,272.09 08/01/2019 1,257,507.50 762,625.00 494,882.50 689,765.00 271,600.48 02/01/2020 388,213.75 204,000.00 184,213.75 98,956.08 08/01/2020 1,283,213.75 779,000.00 504,213.75 688,427.50 265,110.65 02/01/2021 362,258.75 189,625.00 172,633.75 88,844.43 08/01/2021 1,312,258.75 794,625.00 517,633.75 690,267.50 260,746.88 02/01/2022 334,708.75 174,500.00 160,208.75 78,990.49 08/01/2022 1,339,708.75 809,500.00 530,208.75 690,417.50 255,874.78 02/01/2023 305,563.75 158,625.00 146,938.75 69,407.91 08/01/2023 1,365,563.75 823,625.00 541,938.75 688,877.50 250,561.79 02/01/2024 274,823.75 142,000.00 132,823.75 60,108.02 08/01/2024 1,394,823.75 837,000.00 557,823.75 690,647.50 247,084.61 02/01/2025 242,343.75 124,625.00 117,718.75 51,037.14 08/01/2025 1,427,343.75 854,625.00 572,718.75 690,437.50 243,037.98 02/01/2026 207,534.38 106,375.00 101,159.38 42,017.57 08/01/2026 1,462,534.38 876,375.00 586,159.38 687,318.76 238,304.65 02/01/2027 170,668.75 87,125.00 83,543.75 33,244.73 08/01/2027 1,500,668.75 897,125.00 603,543.75 687,087.50 235,076.71 02/01/2028 131,600.00 66,875.00 64,725.00 24,675.44 08/01/2028 1,541,600.00 916,875.00 624,725.00 689,450.00 233,116.91 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 4 SAVINGS Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Present Value Prior Refunding Annual to 08/02/2005 Date Debt Service Debt Service Savings Savings ~ 4.3327453% 02/01/2029 90,181.25 45,625.00 44,556.25 16,273.67 08/01/2029 1,580,181.25 935,625.00 644,556.25 689,112.50 230,425.09 02/01/2030 46,412.50 23,375.00 23,037.50 8,061.14 08/01/2030 1,626,412.50 958,375.00 668,037.50 691,075.00 228,798.85 39,049,576.26 22,589,844.72 16,459,731.54 16,459,731.54 9,736,768.76 Savings Summary PV of savings from cash flow 9,736,768.76 Less: Prior funds on hand -8,640,486.15 Plus: Refunding funds on hand 3,196.12 Net PV Savings 1,099,478.73 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 5 BOND DEBT SERVICE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Dated Date 08/02/2005 Delivery Date 08/02/2005 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 08/02/2005 02/01/2006 292,357.97 292,357.97 08/01/2006 293,991.25 293,991.25 586,349.22 02/01/2007 293,991.25 293,991.25 08/01/2007 293,991.25 293,991.25 587,982.50 02/01/2008 293,991.25 293,991.25 08/01/2008 293,991.25 293,991.25 587,982.50 02/01/2009 293,991.25 293,991.25 08/01/2009 293,991.25 293,991.25 587,982.50 02/01/2010 293,991.25 293,991.25 08/01/2010 293,991.25 293,991.25 587,982.50 02/01/2011 293,991.25 293,991.25 08/01/2011 395,000 3.480% 293,991.25 688,991.25 982,982.50 02/01/2012 287,118.25 287,118.25 08/01/2012 410,000 3.590% 287,118.25 697,118.25 984,236.50 02/01/2013 279,758.75 279,758.75 08/01/2013 420,000 3.680% 279,758.75 699,758.75 979,517.50 02/01/2014 272,030.75 272,030.75 08/01/2014 440,000 3.760% 272,030.75 712,030.75 984,061.50 02/01/2015 263,758.75 263,758.75 08/01/2015 455,000 3.850% 263,758.75 718,758.75 982,517.50 02/01/2016 255,000.00 255,000.00 08/01/2016 475,000 5.000% 255,000.00 730,000.00 985,000.00 02/01/2017 243,125.00 243,125.00 08/01/2017 500,000 5.000% 243,125.00 743,125.00 986,250.00 02/01/2018 230,625.00 230,625.00 08/01/2018 520,000 5.000% 230,625.00 750,625.00 981,250.00 02/01/2019 217,625.00 217,625.00 08/01/2019 545,000 5.000% 217,625.00 762,625.00 980,250.00 02/01/2020 204,000.00 204,000.00 08/01/2020 575,000 5.000% 204,000.00 779,000.00 983,000.00 02/01/2021 189,625.00 189,625.00 08/01/2021 605,000 5.000% 189,625.00 794,625.00 984,250.00 02/01/2022 174,500.00 174,500.00 08/01/2022 635,000 5.000% 174,500.00 809,500.00 984,000.00 02/01/2023 158,625.00 158,625.00 08/01/2023 665,000 5.000% 158,625.00 823,625.00 982,250.00 02/01/2024 142,000.00 142,000.00 08/01/2024 695,000 5.000% 142,000.00 837,000.00 979,000.00 02/01/2025 124,625.00 124,625.00 08/01/2025 730,000 5.000% 124,625.00 854,625.00 979,250.00 02/01/2026 106,375.00 106,375.00 08/01/2026 770,000 5.000% 106,375.00 876,375.00 982,750.00 02/01/2027 87,125.00 87,125.00 08/01/2027 810,000 5.000% 87,125.00 897,125.00 984,250.00 02/01/2028 66,875.00 66,875.00 08/01/2028 850,000 5.000% 66,875.00 916,875.00 983,750.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 8 BOND DEBT SERVICE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Period Annual Ending Principal Coupon Interest Debt Service Debt Service 02/01/2029 45,625.00 45,625.00 08/01/2029 890,000 5.000% 45,625.00 935,625.00 981,250.00 02/01/2030 23,375.00 23,375.00 08/01/2030 935,000 5.000% 23,375.00 958,375.00 981,750.00 12,320,000 10,269,844.72 22,589,844.72 22,589,844.72 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 9 Escrow Reports · Escrow Requirements · Escrow Sufficiency · Escrow Cost · Proof of Arbitrage Yield · Proof of Composite Escrow Yield · Present Value of Requirements at Arbitrage Yield ESCROW REQUIREMENTS Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Period Principal Ending Interest Redeemed Total 02/01/2006 561,113.75 561,113.75 08/01/2006 561,113.75 561,113.75 02/01/2007 561,113.75 561,113.75 08/01/2007 561,113.75 561,113.75 02/01/2008 561,113.75 561,113.75 08/01/2008 561,113.75 561,113.75 02/01/2009 561,113.75 561,113.75 08/01/2009 561,113.75 561,113.75 02/01/2010 561,113.75 561,113.75 08/01/2010 561,113.75 19,470,000.00 20,031,113.75 5,611,137.50 19,470,000.00 25,081,137.50 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 10 ESCROW SUFFICIENCY Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 08/02/2005 - 1.17 1.17 1.17 02/01/2006 561,113.75 561,114.21 0.46 1.63 08/01/2006 561,113.75 561,113.99 0.24 1.87 02/01/2007 561,113.75 561,113.69 -0.06 1.81 08/01/2007 561,113.75 561,113.37 -0.38 1.43 02/01/2008 561,113.75 561,113.94 0.19 1.62 08/01/2008 561,113.75 561,114.05 0.30 1.92 02/01/2009 561,113.75 561,113.14 -0.61 1.31 08/01/2009 561,113.75 561,113.73 -0.02 1.29 02/01/2010 561,113.75 561,114.23 0.48 1.77 08/01/2010 20,031,113.75 20,031,112.98 -0.77 1.00 25,081,137.50 25,081,138.50 1.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 11 ESCROW COST Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Type of Maturity Par Total Security Date Amount Rate Cost SLG 02/01/2006 162,205 3.130% 162,205.00 SLG 08/01/2006 157,389 3.310% 157,389.00 SLG 02/01/2007 162,584 3.430% 162,584.00 SLG 08/01/2007 165,372 3.590% 165,372.00 SLG 02/01/2008 168,341 3.690% 168,341.00 SLG 08/01/2008 171,447 3.720% 171,447.00 SLG 02/01/2009 174,635 3.750% 174,635.00 SLG 08/01/2009 177,910 3.780% 177,910.00 SLG 02/01/2010 181,273 3.810% 181,273.00 SLG 08/01/2010 19,654,725 3.830% 19,654,725.00 21,175,881 21,175,881.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost 08/02/2005 21,175,881 1.17 21,175,882.17 21,175,881 1.17 21,175,882.17 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 12 PROOF OF ARBITRAGE YIELD Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Present Value to 08/02/2005 Date Debt Service ~ 4.3327453% 02/01/2006 292,357.97 286,192.78 08/01/2006 293,991.25 281,689.18 02/01/2007 293,991.25 275,716.14 08/01/2007 293,991.25 269,869.76 02/01/2008 293,991.25 264,147.34 08/01/2008 293,991.25 258,546.27 02/01/2009 293,991.25 253,063.96 08/01/2009 293,991.25 247,697.90 02/01/2010 293,991.25 242,445.62 08/01/2010 293,991.25 237,304.72 02/01/2011 293,991.25 232,272.82 08/01/2011 688,991.25 532,806.76 02/01/2012 287,118.25 217,324.58 08/01/2012 697,118.25 516,471.69 02/01/2013 279,758.75 202,869.04 08/01/2013 699,758.75 496,675.18 02/01/2014 272,030.75 188,987.96 08/01/2014 712,030.75 484,180.09 02/01/2015 263,758.75 175,552.52 08/01/2015 10,918,758.75 7,113,207.82 18,051,594.72 12,777,022.14 Proceeds Summary Delivery date 08/02/2005 Par Value 12,320,000.00 Premium (Discount) 555,811.60 Arbitrage expenses -98,789.46 Target for yield calculation 12,777,022.14 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 13 PROOF OF ARBITRAGE YIELD Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Assumed Call/Computation Dates for Premium Bonds Net Present Value (NPV) Bond Maturity Call Call to 08/02/2005 Component Date Date Price (~ 4.3327453% SERIAL 08/01/2016 08/01/2015 100.000 -16,593.39 SERIAL 08/01/2017 08/01/2015 100.000 -14,886.73 SERIAL 08/01/2018 08/01/2015 100.000 -12,809.40 SERIAL 08/01/2019 08/01/2015 100.000 -11,566.78 SERIAL 08/01/2020 08/01/2015 100.000 -9,282.49 SERIAL 08/01/2021 08/01/2015 100.000 -6,705.49 SERIAL 08/01/2022 08/01/2015 100.000 -4,370.99 SERIAL 08/01/2023 08/01/2015 100.000 -1,804.45 SERIAL 08/01/2024 08/01/2015 100.000 998.40 SERIAL 08/01/2025 08/01/2015 100.000 4,070.88 SERIAL 08/01/2026 08/01/2015 100.000 6,827.24 SERIAL 08/01/2027 08/01/2015 100.000 9,838.70 SERIAL 08/01/2028 08/01/2015 100.000 13,104.06 SERIAL 08/01/2029 08/01/2015 100.000 15,892.32 SERIAL 08/01/2030 08/01/2015 100.000 18,977.27 Rei ected Call/Computation Dates for Premium Bonds Net Present Value (NPV) Bond Maturity Call Call to 08/02/2005 Increase Component Date Date Price ~ 4.3327453% toNPV SERIAL 08/01/2016 - -14,593.80 1,999.59 SERIAL 08/01/2017 - -10,765.39 4,121.34 SERIAL 08/01/2018 - -6,514.02 6,295.38 SERIAL 08/01/2019 - -2,951.33 8,615.45 SERIAL 08/01/2020 - 1,846.37 11,128.86 SERIAL 08/01/2021 - 7,059.52 13,765.01 SERIAL 08/01/2022 - 12,143.51 16,514.50 SERIAL 08/01/2023 - 17,564.02 19,368.47 SERIAL 08/01/2024 - 23,317.00 22,318.60 SERIAL 08/01/2025 - 29,602.86 25,531.98 SERIAL 08/01/2026 - 35,869.67 29,042.43 SERIAL 08/01/2027 - 42,517.75 32,679.05 SERIAL 08/01/2028 - 49,536.21 36,432.15 SERIAL 08/01/2029 - 56,184.93 40,292.61 SERIAL 08/01/2030 - 63,467.04 44,489.77 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 14 PROOF OF COMPOSITE ESCROW YIELD Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan All restricted escrows funded by bond proceeds Present Value Security to 08/02/2005 Date Receipts ~ 3.8245651% 02/01/2006 332,160.57 325,962.21 08/01/2006 332,160.34 319,845.63 02/01/2007 332,159.90 313,843.63 08/01/2007 332,159.32 307,954.13 02/01/2008 332,160.12 302,176.40 08/01/2008 332,160.54 296,506.74 02/01/2009 332,159.81 290,942.45 08/01/2009 332,159.47 285,482.91 02/01/2010 332,161.00 280,127.40 08/01/2010 11,857,731.78 9,812,553.51 14,847,172.85 12,535,395.00 Escrow Cost Summary Purchase date 08/02/2005 Purchase cost of securities 12,535,395.00 Target for yield calculation 12,535,395.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 15 PV OF ESCROW AT ARB YIELD Eugene Water & Electric Board Preliminary Advance Refunding Plan Present Value to 08/02/2005 Date Cashflow ~ 4.3327450% 02/01/2006 561.113.75 549,281.09 08/01/2006 561.113.75 537,633.94 02/01/2007 561.113.75 526,233.75 08/01/2007 561.113.75 515,075.30 02/01/2008 561.113.75 504,153.46 08/01/2008 561.113.75 493,463.21 02/01/2009 561.113.75 482,999.64 08/01/2009 561.113.75 472,757.94 02/01/2010 561.113.75 462,733.41 08/01/2010 20,031,113.75 16,168,773.28 25,081,137.50 20,713,105.03 Valuation date 08/02/2005 Amount 20,713,105.03 Target for yield calculation 20,713,105.03 Jun 16, 2005 10:28 am Prepared by Seattle-Northwest Securities - JEBS 0 Page 1 Refunded Bonds · Summary of Bonds Refunded · Prior Bond Debt Service · Aggregate Debt Service SUMMARY OF BONDS REFUNDED Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Maturity Interest Par Call Call Bond Date Rate Amount Date Price Water Utility System Revenue Bonds, Series 2000, 2000: SERIAL 08/01/2011 5.350% 550,000.00 08/01/2010 100.000 08/01/2012 5.400% 580,000.00 08/01/2010 100.000 08/01/2013 5.500% 610,000.00 08/01/2010 100.000 08/01/2014 5.550% 645,000.00 08/01/2010 100.000 08/01/2015 5.600% 680,000.00 08/01/2010 100.000 08/01/2016 5.625% 720,000.00 08/01/2010 100.000 08/01/2017 5.650% 760,000.00 08/01/2010 100.000 08/01/2018 5.700% 800,000.00 08/01/2010 100.000 08/01/2019 5.750% 845,000.00 08/01/2010 100.000 08/01/2020 5.800% 895,000.00 08/01/2010 100.000 TERM 08/01/2021 5.800% 950,000.00 08/01/2010 100.000 08/01/2022 5.800% 1,005,000.00 08/01/2010 100.000 08/01/2023 5.800% 1,060,000.00 08/01/2010 100.000 08/01/2024 5.800% 1,120,000.00 08/01/2010 100.000 TERM01 08/01/2025 5.875% 1,185,000.00 08/01/2010 100.000 08/01/2026 5.875% 1,255,000.00 08/01/2010 100.000 08/01/2027 5.875% 1,330,000.00 08/01/2010 100.000 08/01/2028 5.875% 1,410,000.00 08/01/2010 100.000 08/01/2029 5.875% 1,490,000.00 08/01/2010 100.000 08/01/2030 5.875% 1,580,000.00 08/01/2010 100.000 19,470,000.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 16 PRIOR BOND DEBT SERVICE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Period Annual Ending Principal Coupon Interest Debt Service Debt Service 08/02/2005 02/01/2006 561.113.75 561,113.75 08/01/2006 561.113.75 561,113.75 1,122,227.50 02/01/2007 561.113.75 561,113.75 08/01/2007 561.113.75 561,113.75 1,122,227.50 02/01/2008 561.113.75 561,113.75 08/01/2008 561.113.75 561,113.75 1,122,227.50 02/01/2009 561.113.75 561,113.75 08/01/2009 561.113.75 561,113.75 1,122,227.50 02/01/2010 561.113.75 561,113.75 08/01/2010 561.113.75 561,113.75 1,122,227.50 02/01/2011 561.113.75 561,113.75 08/01/2011 550,000 5.350% 561.113.75 1,111,113.75 1,672,227.50 02/01/2012 546.401.25 546,401.25 08/01/2012 580,000 5.400% 546.401.25 1,126,401.25 1,672,802.50 02/01/2013 530.741.25 530,741.25 08/01/2013 610,000 5.500% 530.741.25 1,140,741.25 1,671,482.50 02/01/2014 513,966.25 513,966.25 08/01/2014 645,000 5.550% 513,966.25 1,158,966.25 1,672,932.50 02/01/2015 496,067.50 496,067.50 08/01/2015 680,000 5.600% 496,067.50 1,176,067.50 1,672,135.00 02/01/2016 477,027.50 477,027.50 08/01/2016 720,000 5.625% 477,027.50 1,197,027.50 1,674,055.00 02/01/2017 456,777.50 456,777.50 08/01/2017 760,000 5.650% 456,777.50 1,216,777.50 1,673,555.00 02/01/2018 435,307.50 435,307.50 08/01/2018 800,000 5.700% 435,307.50 1,235,307.50 1,670,615.00 02/01/2019 412,507.50 412,507.50 08/01/2019 845,000 5.750% 412,507.50 1,257,507.50 1,670,015.00 02/01/2020 388,213.75 388,213.75 08/01/2020 895,000 5.800% 388,213.75 1,283,213.75 1,671,427.50 02/01/2021 362,258.75 362,258.75 08/01/2021 950,000 5.800% 362,258.75 1,312,258.75 1,674,517.50 02/01/2022 334,708.75 334,708.75 08/01/2022 1,005,000 5.800% 334,708.75 1,339,708.75 1,674,417.50 02/01/2023 305,563.75 305,563.75 08/01/2023 1,060,000 5.800% 305,563.75 1,365,563.75 1,671,127.50 02/01/2024 274,823.75 274,823.75 08/01/2024 1,120,000 5.800% 274,823.75 1,394,823.75 1,669,647.50 02/01/2025 242,343.75 242,343.75 08/01/2025 1,185,000 5.875% 242,343.75 1,427,343.75 1,669,687.50 02/01/2026 207,534.38 207,534.38 08/01/2026 1,255,000 5.875% 207,534.38 1,462,534.38 1,670,068.76 02/01/2027 170,668.75 170,668.75 08/01/2027 1,330,000 5.875% 170,668.75 1,500,668.75 1,671,337.50 02/01/2028 131,600.00 131,600.00 08/01/2028 1,410,000 5.875% 131,600.00 1,541,600.00 1,673,200.00 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 17 PRIOR BOND DEBT SERVICE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Period Annual Ending Principal Coupon Interest Debt Service Debt Service 02/01/2029 90,181.25 90,181.25 08/01/2029 1,490,000 5.875% 90,181.25 1,580,181.25 1,670,362.50 02/01/2030 46,412.50 46,412.50 08/01/2030 1,580,000 5.875% 46,412.50 1,626,412.50 1,672,825.00 19,470,000 19,579,576.26 39,049,576.26 39,049,576.26 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 18 AGGREGATE DEBT SERVICE Eugene Water and Electric Board Refunding 2000 Water Bonds Preliminary Advance Refunding Plan Refunding 2000 Unrefunded Aggregate Annual Date Water Bonds Bonds Debt Service Aggregate D/S 02/01/2006 292,357.97 50,935.00 343,292.97 08/01/2006 293,991.25 50,935.00 344,926.25 688,219.22 02/01/2007 293,991.25 50,935.00 344,926.25 08/01/2007 293,991.25 500,935.00 794,926.25 1,139,852.50 02/01/2008 293,991.25 39,235.00 333,226.25 08/01/2008 293,991.25 509,235.00 803,226.25 1,136,452.50 02/01/2009 293,991.25 26,897.50 320,888.75 08/01/2009 293,991.25 521,897.50 815,888.75 1,136,777.50 02/01/2010 293,991.25 13,780.00 307,771.25 08/01/2010 293,991.25 533,780.00 827,771.25 1,135,542.50 02/01/2011 293,991.25 293,991.25 08/01/2011 688,991.25 688,991.25 982,982.50 02/01/2012 287,118.25 287,118.25 08/01/2012 697,118.25 697,118.25 984,236.50 02/01/2013 279,758.75 279,758.75 08/01/2013 699,758.75 699,758.75 979,517.50 02/01/2014 272,030.75 272,030.75 08/01/2014 712,030.75 712,030.75 984,061.50 02/01/2015 263,758.75 263,758.75 08/01/2015 718,758.75 718,758.75 982,517.50 02/01/2016 255,000.00 255,000.00 08/01/2016 730,000.00 730,000.00 985,000.00 02/01/2017 243,125.00 243,125.00 08/01/2017 743,125.00 743,125.00 986,250.00 02/01/2018 230,625.00 230,625.00 08/01/2018 750,625.00 750,625.00 981,250.00 02/01/2019 217,625.00 217,625.00 08/01/2019 762,625.00 762,625.00 980,250.00 02/01/2020 204,000.00 204,000.00 08/01/2020 779,000.00 779,000.00 983,000.00 02/01/2021 189,625.00 189,625.00 08/01/2021 794,625.00 794,625.00 984,250.00 02/01/2022 174,500.00 174,500.00 08/01/2022 809,500.00 809,500.00 984,000.00 02/01/2023 158,625.00 158,625.00 08/01/2023 823,625.00 823,625.00 982,250.00 02/01/2024 142,000.00 142,000.00 08/01/2024 837,000.00 837,000.00 979,000.00 02/01/2025 124,625.00 124,625.00 08/01/2025 854,625.00 854,625.00 979,250.00 02/01/2026 106,375.00 106,375.00 08/01/2026 876,375.00 876,375.00 982,750.00 02/01/2027 87,125.00 87,125.00 08/01/2027 897,125.00 897,125.00 984,250.00 02/01/2028 66,875.00 66,875.00 08/01/2028 916,875.00 916,875.00 983,750.00 02/01/2029 45,625.00 45,625.00 08/01/2029 935,625.00 935,625.00 981,250.00 02/01/2030 23,375.00 23,375.00 08/01/2030 958,375.00 958,375.00 981,750.00 22,589,844.72 2,298,565.00 24,888,409.72 24,888,409.72 Jun 16, 2005 10:24 am Prepared by Seattle-Northwest Securities - JEBS (EUGENE:WATER-R00WAT,R00WAT) Page 19