Underwriting – Stifel, Nicolaus & Company Lisa May: (303) 291-5365 / [email protected] Linda Eremita: (412) 923-5927 / [email protected] Gary Nowicki: (412) 923-5925 / [email protected]

$20,000,000* THE BERKS COUNTY MUNICIPAL AUTHORITY Revenue Bonds (Alvernia University Project), Series of 2020 Rated “BB+” (Stable Outlook) by S&P Global Ratings

INVESTOR PRESENTATION This presentation should be read in conjunction with the preliminary Sale Date: Tuesday, February 11, 2020* limited offering memorandum dated January 23, 2020 found on the * Preliminary, Subject to Change McElwee & Quinn website. Disclosure Language: 2020 Bond Issuance

This electronic Investor Presentation you are about to view reflects certain financial and operating data for the proposed offering by the Stockton Public Financing Authority (“the Issuer”) of its Parking Revenue Bonds, Series 2020 (the “2020 Bonds”). If you are viewing this presentation after January 30, 2020, there may have been events that have occurred subsequent to such date that would have a material adverse effect on the financial information that is presented herein, and none of Stifel, Nicolaus & Company, Inc. (“Stifel”), as the Underwriter for the 2020 Bonds, and the Issuer has undertaken any obligation to update this electronic presentation. All market prices, financial data and other information provided herein are not warranted as to completeness or accuracy and are subject to change without notice. This Investor Presentation is provided for your information and convenience only, and is subject in all respects to the information presented in the complete Preliminary Official Statement prepared in connection with the 2020 Bonds. Any investment decisions regarding any of the 2020 Bonds should only be made after a careful review of the complete Preliminary Official Statement related thereto. By accessing this presentation, you agree not to duplicate, copy, download, screen capture, electronically store or record this Investor Presentation, nor to produce, publish or distribute this Investor Presentation in any form whatsoever. This Investor Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including the 2020 Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the 2020 Bonds will be made solely by means of the Preliminary Official Statement and Official Statement, which describe the actual terms of the related 2020 Bonds. In no event shall the Underwriter or the Issuer be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction mentioned herein. The Underwriter makes no representations as to the legal, tax, credit or accounting treatment of any transactions mentioned herein, or any other effects such transactions may have on you and your affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of the 2020 Bonds. Nothing in these materials constitutes a commitment by the Underwriter or any of their affiliates to enter into any transaction. No assurance can be given that any transaction mentioned herein will in fact be executed. Past performance is not indicative of future results, which will vary. Transactions involving the 2020 Bonds may not be suitable for all investors. You should consult with your own advisors as to the suitability of the 2020 Bonds for your particular circumstances. Clients should contact their salesperson at, and execute transactions through, an entity of the Underwriter or other syndicate member entity qualified in their home jurisdiction unless governing law permits otherwise.

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* Preliminary, Subject to Change Investor Presentation Series of 2020 Overview

• Issuer: The Berks County Municipal Authority • Borrower: Alvernia University • Rating: “BB+” (Stable Outlook) by S&P Global Ratings • Borrowing Size: $20,000,000* • Use of 2020 Bond Proceeds: To finance (i) the current refunding of certain outstanding tax-exempt revenue notes previously issued on behalf of the University (collectively, the “Prior Notes”); (ii) the design, construction, renovation and improvement of various capital improvements to the University’s existing buildings and facilities; (iii) the acquisition, rehabilitation, reconstruction and refurbishment of certain existing buildings located in the City of Reading, ; (iv) the funding of a debt service reserve fund; and (v) the payment of costs of issuing the 2020 Bonds. • Final Maturity: October 1, 2049* • Optional Redemption: April 1, 2030* at 100% • Sale Date: February 11, 2020* • Dated Date / Closing Date: February 19, 2020* • Security: (i) Revenue Pledge, (ii) Debt Service Reserve Fund, (iii) Mortgage, and (iv) Negative Pledge

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* Preliminary, Subject to Change Investor Presentation Contacts

Stifel, Nicolaus & Company is happy to arrange phone calls and/or visits with the University.

• Stifel, Nicolaus & Company Underwriting Contact –Lisa May, Director, Underwriting • Ph (303) 291-5365, [email protected]

• Stifel, Nicolaus & Company Banking Contacts –Linda Eremita, Managing Director, Higher Education Public Finance • Ph (412) 923-5927, [email protected] –Gary Nowicki, Director, Higher Education Public Finance • Ph (412) 923-5925, [email protected]

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Investor Presentation History

• Alvernia University, a Pennsylvania 501(c)(3) corporation (“Alvernia” or the “University”), celebrated its 60th Anniversary in 2018. In the span of more than a half century, what began as a small women’s college, founded in 1958 by the Bernardine Franciscan Sisters in Reading, Pennsylvania, has become a regionally and nationally recognized comprehensive, co-ed, multi- campus institution. Today, the University remains true to the mission and vision of the founding sponsors, with a heritage and history that reflects the spirituality of St. Francis of Assisi. • In 1967, only nine years after its founding, Alvernia was granted accreditation from Middle States Commission on Higher Education. • On September 25, 2008, Alvernia’s officials announced that it had attained university status and would be known as Alvernia University. • In 2009, the Schuylkill Center (the University’s inaugural branch location) opened; in 2012, construction of Founders Village Buildings 3 & 4 (a residential complex) were completed; and in 2013, the Campus Commons opened. • On July 1, 2019, President John Loyack assumed University leadership as its 7th president. • On September 10, 2019, the University community dedicated the Tom and Helen Flynn Complex for Recreation, Wellness and Health Sciences, a 100,000 square foot academic and recreation hybrid facility, named in honor of the recently retired president.

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Investor Presentation Campus Map

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Investor Presentation Institutional Recognition

• U.S. News & World Report magazine ranks Alvernia in its annual listing of Best U.S. Colleges and , most recently 94 in the “Best Regional Universities Category (North)” in 2019. The publication also previously named Alvernia as a Best Buy in the Northeast.

• Alvernia received a $2.3 million Title III grant from the U.S. Department of Education, under the Strengthening Institutions Program. The grant will enable Alvernia to strengthen student achievement, persistence, and retention, particularly in the formative first two years of the baccalaureate. The grant will be distributed over a five-year period.

• Washington Monthly tabs Alvernia among the nation’s elite for community and national service.

• Alvernia earned the BCTV Community Building Company Award in 2019.

• The prestigious Carnegie Foundation selected Alvernia as one of only 23 institutions in Pennsylvania and 361 nationally to receive its 2015 Community Engagement Classification. Other schools receiving the national recognition included Duke, Emory, Villanova and Notre Dame universities.

• Alvernia was one of only four institutions in Pennsylvania (including the University of Pennsylvania) — and one of 43 nationally — to earn the President’s Higher Education Interfaith Community Service Honor Roll (with Distinction) award for 2014. Organized by the Corporation for National and Community Service and the U.S. Department of Education, the distinction is the highest federal recognition that universities can receive for community service and civic engagement. The University also received Honor Roll recognition for General Community Service and Education.

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Investor Presentation Accreditations & Memberships

Accreditations: • MSCHE: Middle States Commission on Higher Education • PDE: Pennsylvania Department of Education - Higher Education Division • CCNE: Commission on Collegiate Nursing Education (BSN, MSN, DNP) • CAATE: Commission on Accreditation of Athletic Training Education (BSAT, MSAT) • ACBSP: Accreditation Council for Business Schools and Programs (All UG and MBA) • CAPTE: Commission on Accreditation in Physical Therapy Education (DPT) • CACREP: Council for Accreditation of Counseling and Related Education Programs (MAC) • CSWE: Council on Social Work Education (BSW, MSW) • ACOTE: Accreditation Council for Occupational Therapy Education (MSAT, OTD) • PA State Board of Nursing (pre-licensure BSN, FNP, A-GNP) • PDE Teacher Education (PreK-4, SPE, Prin, Super, ESL) Memberships: • CIC: Council of Independent Colleges • NCAA: National Collegiate Athletic Association • AICUP: Association of Independent Colleges & Universities of Pennsylvania • NASPA: National Association of Student Personnel Administrators • NACAC: National Association for College Admissions Counseling • NACUBO: National Association of College & University Business Officers 8

Investor Presentation Programs of Study

Associate of Arts Majors (5): • General Science • History • Applied Health • Healthcare Administration • Leadership Studies • Business Administration • Health Care Science • Mathematics • Diagnostic Medical Sonography • Health Science • Music • Medical Imaging • Human Resource Management • Philosophy • Surgical Technology • Mathematics • Physics • Management • Political Science Bachelor of Arts Majors (13): • Marketing • Pre-Law • Addictions and Mental Health Treatment • Psychology • Psychology • Criminal Justice • Sport Management • Sociology • Communication • Nursing • Spanish • Digital Media Marketing • Social Work • Theatre • Education - Pre K-4 • Theology • Education – Special Education Optional Undergraduate Minors (33): • Women and Gender Studies • English • Addictions and Mental Health Treatment • History • Art Masters Degrees (11) • Liberal Studies • Biology • Master of Arts in Clinical Counseling • Philosophy • Business • Master of Arts in Leadership • Political Science • Chemistry • Master of Education in Educational Leadership • Theatre • Communication • Master of Education in Special Education • Theology • Community and Environmental Sustainability • Master of Education in ESL • Community Engagement • Master of Business Administration Bachelor of Science Majors (22): • Criminal Justice • Master of Science in Athletic Training • Accounting • Cultural Studies • Master of Science in Occupational Therapy • Biology • Cyber Security • Master of Science in Nursing Education • Biochemistry • Data Science • Master of Science in Nursing Leadership • Bio Medical Laboratory Science • Digital Media • Master of Social Work • Chemistry • Economics • Computer Science • English Doctoral Degrees (3) • Economics • Environmental Science • Doctor of Philosophy in Leadership • Environmental Science • Forensic Science • Doctor of Physical Therapy • Finance • General Science • Doctor of Nursing Practice • Forensic Science • Gerontology 9

Investor Presentation Most Highly Subscribed Majors & Programs: Fall 2019

• The University has successfully created signature programs and majors for which it is known. The tables below show the five most highly subscribed to undergraduate and graduate programs at the commencement of the 2019/20 academic year.

Most Subscribed to Undergraduate Programs: Fall 2019 Category Enrollment Health Professions and Related Programs 992 Business / Marketing 257 Homeland Security, Law Enforcement, Firefighting, and Protective Services 192 Biological / Life Sciences 92 Psychology 73

Most Subscribed to Graduate Programs: Fall 2019 Category Enrollment Master of Business Administration 121 Doctor of Physical Therapy 97 Master of Science – Occupational Therapy 71 Master of Arts – Clinical Counseling 56 Master of Education 55

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Investor Presentation President John R. Loyack

John Loyack assumed the presidency of Alvernia University on July 1, 2019. Immediately prior to his presidential appointment, Mr. Loyack was Executive Vice President for Business and Administrative Affairs, Chief Financial Officer and Treasurer of King’s College in Wilkes-Barre, Pennsylvania. A 1985 King’s College graduate, Mr. Loyack was responsible for oversight of the business, human resources, facilities, security and information technology offices; coordinating the planning and implementation of all campus construction and renovation projects, as well as leading the formulation and implementation of the successful “March to Sustainability”, a five-step strategic restructuring process that focused on stabilization through process improvement and efficiency, creating new resources through cost rationalization, and investing in new programs. Prior to his tenure at King’s, Mr. Loyack was the President and Chief Executive Officer of CPG International in Scranton, Pennsylvania, and the President and Chief Executive Officer for Optim Energy, an integrated energy company based in Irving, Texas. Mr. Loyack holds a B.S. in accounting from King’s, an M.B.A. from , Pennsylvania and is also a certified public accountant. He has also previously held professional positions with PricewaterhouseCoopers in Philadelphia, Pennsylvania, Lutron Electronics in Allentown, Pennsylvania and Union Pacific Corporation in Bethlehem, Pennsylvania and Omaha, Nebraska. On October 9, 2019, the White House issued a press release announcing that the President of the appointed President Loyack to the United States Commission on Presidential Scholars.

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Investor Presentation Board of Trustees

Name Occupation Dr. Stephen Banco Physician, Owner and Founder, Surgical Institute of Reading Dr. Charles Barbera ’81, M’01 Chair, Department of Emergency Medicine, Reading Health System Paula Barrett, CPA Business Consulting Services Group, Reinsel Kuntz Lesher – Partner Dave Beavens ’88 Operating Partner, Detroit Renewable Energy, LLC Ann Borza Senior Director of Client Services, Listrak Sr. Marilisa Helen da Silva, OSF Congregational Minister, Bernardine Franciscan Sisters Bob Davis Retired, Banking Professional Tim Dietrich, Esquire Attorney Partner, Barley Snyder, LLP Mike Duff, Esquire SVP Government Relations and Chief Compliance Officer, Penske Trucking Elsayed Elmarzouky President, Islamic Center of Reading Michael Fromm President and CEO, Fromm Electric Supply Corp. Pat Giles Community Volunteer Sr. Madonna Marie Harvath, OSF Director of Vocations, Bernardine Franciscan Sisters Kathleen Herbein ’95 Community Volunteer Ellen Huyett, Esquire Community Volunteer Sr. Antoinette Keiser, OSF ’71 Congregational Councilor, Bernardine Franciscan Sisters Steve Koons ’05, CPA Partner, Cotton & Co. LLP Sr. Danielle Marie Kubelsky, OSF Bernardine Franciscan Sisters Dan Langdon Retired CEO, East Penn Manufacturing, Inc. John Loyack, Ex-Officio President, Alvernia University Dr. Rachel Maher ’94 Pediatric Dentist, Dentistry for Children Steve Najarian Partner, SN Companies Sr. David Ann Niski ’66 Executive Director, Bernardine Franciscan Sisters Foundation Guido Pichini President and CEO, W.S.K. & Associates Jeff Rush President – Commercial Markets, Fulton Bank Peter Rye President, Brentwood Industries, Inc. Jeanne Savage ’88 Community Volunteer Gregory Shemanski President and Owner, Custom Processing Services, Inc. Pat Shields Owner and CEO, Fromuth Tennis Ralph Simpson Chief Executive Officer, Warfel Construction Paul Trunk President of Berk-Tek and VP & GM of Nexans LAN Division North America Sr. Shaun Kathleen Wilson, OSF ’69 Director, McGlinn Conference Center, Bernardine Franciscan Sisters Tom Work, Esquire Shareholder, Stevens & Lee Benjamin Zintak, III President, Zeeco, Inc.

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Investor Presentation Board of Trustees – Skill Diversity

Energy, 1 Accounting, 2 Health Care, 3

Real Estate, 1

Manufacturing, 1 Business/Marketing, 9

Social Services, 1

Volunteer, 3

Finance/Banking, 3

Religious, 6

Law, 4

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Investor Presentation History of Total Giving

Total giving at Alvernia University the past 5 years.

Total Giving $7,000,000

$6,092,907 $6,000,000

$5,000,000 $4,372,194 $4,006,140 $4,000,000

$3,000,000 $2,190,155 $2,000,000

$1,061,685 $1,000,000

$- FY 15 FY 16 FY 17 FY 18 FY19

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Investor Presentation History of Annual Fund Gifts

The annual fund gifts, both restricted and unrestricted, for the past five fiscal years are shown below. Restricted gifts have primarily been associated with scholarships. The Alvernia Advantage is annual fund giving that is restricted to scholarships awarded in either the current or subsequent year.

Unrestricted Annual Gifts Restricted Annual Gifts (Alvernia Advantage)

$3,000,000

$2,489,039 $2,500,000

$2,000,000 $1,742,981 $1,670,472

$1,500,000

$1,000,000

$526,034 $448,480 $500,000 $374,978 $373,773 $310,567 $355,189 $340,926

$- 2014-15 2015-16 2016-17 2017-18 2018-19 15

Investor Presentation Total Enrollment – Matriculated Students

Total Headcount 3,500 2,856 2,872 3,000 2,838 2,792 2,739 498 549 2,500 587 596 608 2,000 1,500 2,358 2,323 1,000 2,251 2,196 2,131 500 0 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Undergraduate Graduate

Total FTE 2,500 2,239 2,240 2,216 2,228 2,210 2,000

1,500

1,000

500

0 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Total

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Investor Presentation Applications, Acceptances, & Matriculants – Freshmen

Cohort: Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Acceptance Rate 74.3% 74.5% 70.8% 68.4% 64.2% Matriculation Rate 32.3% 25.9% 24.0% 24.2% 16.7% As of January 17, 2020, 2,721 freshman applications have been received for Fall of 2020, compared with 3,088 at January 17, 2019, and 2,026 at January 17, 2018. 17

Investor Presentation Applications, Acceptances, & Matriculants – Graduate Students

Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Acceptance Rate 59.6% 33.7% 28.4% 48.9% 42.3%

Matriculation Rate (New Students) 74.5% 88.8% 90.1% 62.2% 72.4%

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Investor Presentation Retention Rates (Cohort Year)

Freshman First Year Retention 90% 82% 80% 77% 76% 74% 72% 70%

60%

50%

40%

30%

20%

10%

0% 2014 2015 2016 2017 2018 The University believes that the Fall 2015 retention rate was an anomaly and that subsequent lower retention rates were due to the addition of certain programs and athletic teams with normal attrition.

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Investor Presentation Housing Summary

Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019

Capacity 964 1,022 1,019 1,019 1,019

Occupancy 933 928 917 981 942

Occupancy Rate 97% 91% 90% 96% 92%

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Investor Presentation Faculty

• The University currently employs 297 full- and part-time faculty (Fall 2019):

–119 full-time

–178 part-time

• 77 % of the University’s full-time faculty hold a Doctorate or other terminal degree.

• The current student-to-faculty ratio is 13:1.

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Investor Presentation Competition Comparison – Full-Time Tuition, Fees, Room & Board 2019-2020 Rates (not discounted)

Institution Tuition & Fees Room& Board Total (42 mi.) $47,043 $13,914 $60,957 (46 mi.) $44,910 $12,200 $57,110 University (72 mi.) $40,620 $14,620 $55,240 King's College (78 mi.) $38,724 $13,464 $52,188 DeSales University (41 mi.) $38,900 $13,000 $51,900 (202 mi.) $38,170 $12,948 $51,118 (78 mi.) $35,906 $13,957 $49,863 Alvernia University $36,350 $12,800 $49,150 (236 mi.) $36,856 $12,212 $49,068 (95 mi.) $34,560 $14,220 $48,780 (63 mi.) $34,580 $12,470 $47,050 Messiah College (72 mi.) $36,120 $10,580 $46,700 (53 mi.) $32,960 $13,680 $46,640 (52 mi.) $32,865 $12,590 $45,455 (52 mi.) $32,000 $11,710 $43,710 Source: Collegeboard.org and institutional data

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Investor Presentation Balance Sheet Summary ($000s)

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Investor Presentation Income Statement Summary ($000s)

2015 2016 2017 2018 2019 UNRESTRICTED REVENUES (WITHOUT DON. RSTR.) Student tuition and fees, net of student aid $ 44,286,091 $ 44,896,402 $ 45,004,002 $ 44,831,114 $ 45,651,408 Sales and service of auxiliary enterprises 9,686,680 10,341,656 10,534,591 10,832,119 11,634,974 Net student related revenues 53,972,771 55,238,058 55,538,593 55,663,233 57,286,382 Private gifts and grants 305,218 379,783 379,813 430,190 431,700 Government grants and related income 815,427 933,600 1,816,588 789,015 1,196,785 Investment income, net 266,844 (32,448) 2,179,623 1,364,245 517,769 Gain on involuntary conversion 1,111,617 - 1,535,970 181,611 - Transfer of gifts and grants (151,073) - (25,131) (2,100) (101,886) (Loss) gain on sale of property (11,656) 16,000 2,970 (6,411) 8,619 Net assets released from restrictions 666,847 1,130,694 1,395,134 1,393,640 1,351,401 TOTAL UNRESTRICTED REVENUES (WITHOUT DON. RSTR.) 56,975,995 57,665,687 62,823,560 59,813,423 60,690,770 UNRESTRICTED EXPENSES (WITHOUT DON. RSTR.) Instruction and research 17,122,532 18,155,726 18,266,759 18,919,876 19,299,773 Instructional support 6,250,395 5,942,048 5,723,944 5,851,393 6,201,921 Student services 7,819,850 8,135,720 8,440,620 8,549,676 9,289,808 Auxiliary enterprises 9,748,660 9,245,956 9,395,602 9,779,897 10,353,406 Institutional support 12,361,092 13,496,487 13,047,872 13,540,605 14,440,917 Fundraising 1,288,999 1,208,731 1,376,193 1,478,828 1,460,205 TO TAL UNRES TRIC TED EXP ENS ES ( W ITH O UT DO N. RS TR. ) 54,591,528 56,184,668 56,250,990 58,120,275 61,046,030 INCOME (LOSS) 2,384,467 1,481,019 6,572,570 1,693,148 (355,260) CHANGES IN UNRESTRICTED NET ASSETS 2,384,467 1,481,019 6,572,570 - - CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 554,907 127,854 788,574 - - CHANGES IN PERMANENTLY RESTRICTED NET ASSETS (237,558) 1,830,015 1,093,948 - - CHANGES IN NET ASSETS WITHOUT DON. RSTR. - - - 1,693,148 (355,260) CHANGES IN NET ASSETS WITH DON. RSTR. - - - 4,679,700 2,672,863 NET AS S ETS , B EG INNING 56,499,802 59,201,618 62,640,506 71,095,598 77,468,446 NET AS S ETS , ENDING $ 59,201,618 $ 62,640,506 $ 71,095,598 $ 77,468,446 $ 79,786,049

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Investor Presentation Fiscal Year 2020 Budget (As of September 30, 2019)

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Investor Presentation Overview of Estimated Pro Forma Indebtedness* (Post 2020 Bond Issuance) Estimated Debt Mix 2019 Bonds $52,000,000

2020 Bonds* $20,000,000

2020 Bonds 27.8% 2019 Bonds 72.2%

Series Name Par Amount Borrowing Type 2019 Bonds $52,000,000 Fixed (10-Years) 2020 Bonds* $20,000,000 Fixed $72,000,000

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* Preliminary, Subject to Change Investor Presentation Overview of Estimated Pro Forma Indebtedness* (Post 2020 Bond Issuance) Estimated Fiscal Debt Service (Total Principal & Interest)

$7,000 Debt Restructuring Goal: At least $1MM annual savings through FY30 $6,000

2020 Bonds Debt Service Reserve Fund $5,000

$4,000

$3,000

Thousands $2,000

$1,000

$0

2019 Bonds 2020 Bonds* DSRF* Estimated Existing Indebtedness through FY30 (Pre 2019 & 2020 Bond Issuance) The 2019 Revenue Bonds in the above chart assume the current 10-year fixed bank loan rates (at an average rate of 3.24%) for the life of the borrowing. The 2019 Revenue Bonds are comprised of four separate bank direct purchased bonds. Three of the bonds, representing a total par amount of $27 million of the total $52 million 2019 Revenue Bonds par amount, have a ten year maturity, after which $21 million of the $27 million would have to be refinanced if not previously refunded. The remaining bond with a par amount of $25 million, has a 30 year maturity. There are no prepayment penalties associated with any of the bank loans comprising the 2019 Revenue Bonds. 27

* Preliminary, Subject to Change Investor Presentation