MAC Quarterly Newsletter Municipal Advisory Council of

Buhl Building 535 Griswold, Suite 1850 , Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

The Kilpatrick Enterprise Spring Conference eet Robert “Bob” Courtesy of MBeeckman, Supervi- The MAC & Bond Club of Detroit sor of the Public Corruption April 22, 2015 beginning at 3:00PM Squad at the Federal Bureau Speaker: Robert (Bob) Beeckman of the FBI of Investigation Field Office in Detroit. He’ll be speaking Save the Date at the joint MAC Michigan & You can register today: 313-963-0420 Bond Club of Detroit semi- Offered at VisTa Tech Center, Schoolcraft College Livonia, Michigan nar to be held at the VisTaTech Center in Livonia’s Schoolcraft College on April 22, 2015. His talk titled The Kilpatrick Enterprise will give attendees an inside look at the investigation, trial and conviction of A Look Back in History Detroit’s former mayor. MAC’s Early Days: 1932 Beeckman, an attorney, who was at one time an assistant prosecutor in Saginaw, Michigan teamed with eople who know others to investigate Kilpatrick, and it took Pthe history of the eight years of hard work to see it through. Municipal Advisory Continued on page 2. Council (MAC) may tell you it was incorpo- RECAPPING THE NEWER rated as a not-for-profit MAC KEY REPORT in October 1932, but See page 6 most are unaware that We’ve added features, and it has become a the MAC history actu- popular download! A sample is appended ally began in early 1931. at the end of the newsletter.

On February 16, 1931 a steering committee held MAC’s Website and Reports a meeting in to discuss creat- ing a new association to act on “the financial crises What Members Access! of various Michigan political subdivisions.” And at Did you know? Between 2012 and 2014 MAC mem- that meeting Mr. Carl H. Chatters, the then direc- bers accessed the website on average 19,025 times! tor of Finance in the city of Flint, Michigan, accept- The largest subsets of visitors are financial advisors, ed the committee’s invitation to become the Mu- followed by broker-dealers and rating agencies. nicipal Advisory Council’s first director, at a salary of $7200 per year. See MAC HISTORY on page 4. For more information see REPORTS on page 5. WELCOME MAC’s New Members Longhouse Capital Advisors US Bank Corporate Trust Services MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

Employed at the FBI for the past 19 you see on television,” added Beeck- to make money for another,” he ex- years, Beeckman began his tenure man. “To wiretap there are approv- plained. Beeckman gave an example. investigating robberies and kidnap- als we go through, countless approv- “If you have a city that will buy 20 ping, then “moved into public cor- als. We really are the good guys.” His fire trucks this year and someone ruption cases,” he said, adding, “It’s team examines bank records and has power to award the contract to a everything I thought it would be.” uses covert techniques, “including particular person or member, there is And yes, he’s been to Quantico in consensual monitoring, and placing room for corruption. Or if you have Virginia where he received training. a bug at a particular place,” he said. police writing unwarranted tickets Whatever the investigation, Kwame or someone paying a city inspector According to Beeckman, in the Kilpatrick, Alonzo Bates or others, $500 to look the other way regarding hierarchy of FBI priorities, public Beeckman has used every tool avail- a payment owed to the city of $5,000, (municipal) corruption sits high. able: surveillance, audits of financial everyone loses. The city loses. Its peo- While “terrorism and cyber crimes records, bank record reviews, and ple lose. Again, it’s about power, and are definitely number one, on the countless interviews with hundreds who has it, who exercises it.” There is criminal list of priorities, munici- of people. In the case of Kilpatrick, no typical public corruption profile pal crimes rank higher in priority over 2,500 people were questioned. because the motivation behind the than even violent crimes and other acts fluctuates. One corruptor might acts because if you have a public of- He emphasized, “The FBI can only have fallen on hard times, and anoth- ficial selling their office by taking function if people cooperate with er might simply be greedy. bribes, it tears apart democracy and us. People want the right thing to you cannot function as a society if be done, but then write an anony- Technology has played a role in elected officials do not uphold their mous tip letter. That doesn’t work. investigations and while social net- duties,” he said. It all breaks down. We’re only as good as the public that working has made it easier to find helps.” Beeckman said it takes years people and investigate relationships Beeckman was involved in a cor- to investigate cases. He stressed that, and community ties, new devices on ruption case against Alonzo Bates, a “If people are afraid for safety, we the market that block access to phone Detroit City Council member, con- can take care of that. I’ve never seen records, and phones that block track- victed in 2006 of federal charges; a case where those concerns are not ing, are a hindrance. “Certain cell Bates put family on the city payroll or cannot be addressed,” and added, phone providers are preventing gov- and was sentenced to 33 months. “When people see something, they ernment access where it is necessary Other cases have involved police need to call. They need to act. Yet to get the job done. They have made corruption, with charges against po- many don’t.” Many avoid involve- FBI work more difficult. Counter to lice for stealing drugs, dealing drugs, ment, citing, “a worry that it will be what you read in the news, we do not doing drugs, planting evidence, rob- bad for business or fearing retribu- willy-nilly go about wire-tapping. bing and in one case, “conspiring tion, and then we have to subpoena There are numerous approvals from behavior by a policeman to kill an- and it all takes time,” he said. multiple departments required, and other police officer who wanted to a Federal judge must determine if testify in a case,” he said. While most people operate fairly, there is probable cause,” Beeckman there is always room for corruption explained. On the plus side elec- FBI methods of investigation run when, “Somebody has some sort tronic document storage can make it the gamut. “And it’s not like what of power to cost or save money or easier to retrieve records going back

2 MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

for years unlike paper ledger records wise companies cannot get anything The FBI’s goal is to teach foreigners kept in the past. done.” By way of story he related a about the American justice system, meeting with a woman from India, how trials work, and steps in an in- Beeckman said while in Detroit. “She said, vestigation. It’s meant to benefit for- the public is the main ‘You Americans, eigners and American companies source of information you don’t know how with aspirations of doing business for FBI public corrup- good you have it.’ globally. tion investigations, the And then described FBI often works in tan- a relative of hers who About Bob Beeckman dem with other agencies wanted a divorce but Supervisory Special Agent Robert to gather facts, including because the judge F. Beeckman has a bachelor’s de- the Attorney General of- kept getting pay- gree in English from Michigan State fice, police departments ments [bribes], he University, and a J.D. from Thomas and other groups. “We refused to grant it. Cooley Law School. Following law work together and un- And finally the wom- school, he worked as an assistant like what you see depicted on tele- an’s lawyer said, ‘Hey there’s nothing prosecuting attorney in Saginaw vision, the FBI operates within the I can do for you.’ She was stuck.” County, Michigan. After leaving law,” he added. In one case involving the prosecutor’s office, Beeckman the Detroit City Water and Sewer- Beeckman has traveled to Ro- joined the F.B.I. After completing age Department, Beeckman teamed mania, Hungary, Zambia, and the the F.B.I. Academy, Beeckman was with the EPA’s CID, the Criminal Ukraine to conduct police training. assigned to the Detroit Field Office, Investigation Division of the En- With a team he’s also spearheaded where he has remained for 19 years. vironmental Protection Agency, mock trials in some of those coun- Beeckman currently supervises the to uncover millions ($70 million) tries. “I’ll travel with a Federal judge public corruption squad in Detroit. in extorted contracts. The Internal and a prosecuting attorney and we’ll As a street agent, he focused on law Revenue Service became involved use a mock trial to show develop- enforcement and municipal corrup- too. ing nations how the United States tion. He was the FBI case agent in conducts a fair trial. It teaches these charge of the investigation of former He has traveled the globe for work, people about corruption.” Detroit Mayor, Kwame Kilpatrick. speaking at conferences and engag- ing with public officials and busi- While the lessons are educational, He has lectured extensively in po- ness leaders. With a sense of pride there’s another motive for the ses- lice departments and police acad- he said foreigners view Americans sions. “When American businesses emies in the United States, Eastern with a bit of awe. “People overseas try to set up shop in foreign coun- Europe, and Africa. Beeckman are shocked to hear about corrup- tries they can find themselves at the taught Michigan Criminal Law and tion in the US because they look up mercy of foreign officials who wield Michigan Criminal Procedure as to it [the US] as a great place,” he a big stick. It ranges from ‘pay us an adjunct professor at Ferris State said. Beeckman said overseas cor- one million dollars if you want to University for six years. ruption is the norm. “It’s how busi- do business here or we’ll shut you ness transactions happen, just as down’ to far lesser threats,” he said. a matter of course, because other- 3 MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

MAC HISTORY from Page 1 [school] District No. 9. And there water department conditions in sur- was discussion about closing the rounding municipalities and the In the following weeks, the MAC schools down for a time, to “in- committee agreed to it. didn’t waste time. It was the Depres- spire” taxpayers to pay what was sion and there was work to do. The due. Chatters evaluated the dis- The first MAC Quarterly Meeting executive committee initially held trict’s budget and submitted a report was held June 10, 1931 in the Direc- weekly meetings to discuss several but no follow-up is chronicled in the tor’s Room at First NationalBank issues impacting the financial sec- meeting minutes. and the minutes detailed the level of tor in Michigan – specifically bank involvement MAC had in Michigan failures, and cities and schools in Then late in April of the same year financial affairs. distress. Bond defaults and repay- Melvindale applied for a loan [min- ment disputes were becoming wide- utes do not identify a district, so it The early MAC Council: spread. The group unanimously is assumed it was the city of Melvin- agreed that MAC advisory services dale and not a school district] – and Conducted studies in 33 municipalities should be offered to cities in difficult Chatters reported that their expens- where note issues had been proposed and circumstances. es were twice what they should be sent reports to members on seven of the in his estimation and further rec- communities. Minutes dated March 19, 1931 ommended cuts to operating costs. chronicled the MAC committee’s Evaluated loan requests – the council in- Several other districts and munici- vestigated and offered constructive sug- observation that there was growing palities soon “petitioned” for loans and widespread interest in the “re- gestions to help municipal chiefs make the same month: Bloomfield Town- good decisions, and treaded lightly to ports” generated by MAC. These re- ship, East Detroit and others. Inde- avoid being characterized as intrusive. ports were initially sent to members pendence Township School District only but the committee later took up No 3 needed an $8,000 loan against Established a framework to develop a motion to consider charging non- $19,000 delinquent taxes as noted in complete financial reports on all 64 cit- members a non-disclosed fee for the minutes. ies and villages in Oakland, Wayne, and access to reports on municipalities. Macomb counties, and to report on over- The idea was tabled for the present In June of 1931 the committee lapping debt of the counties as well. As- signed county employees conducted the time. considered a new policy – one that work, under the MAC’s direction. would require members to give ap- The team also considered whether proval before making loans to mu- the council should include “in re- Considered when loans were merited nicipalities in the metropolitan area, and when not – for example, Chatters ports, recommendations as to loans specifically the [final] approval of reported that the financial program of requested.” Cities and school dis- Chatters, the director, as to “con- a municipality seeking a loan request tricts had begun to ask for operating structiveness, et cetera, same to be should be outlined for at least a year in loans. Director Chatters, the com- held confidential.” They decided to advance. If the municipalities financial mittee decided, would put forward put the idea to members at the up- program supported bondholders of the recommendations for the executive coming quarterly meeting. present obligations, then the loan would leadership to consider. receive a green light, but if not, then there was no merit to lending when the future Chatters, then introduced a new The minutes discussed a loan re- status of the loan seeker was not clear. topic and suggested that MAC hire Continued on Next Page quest from Royal Oak Township’s a worker to survey water rates and 4 MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

HISTORY continued 2012 to 2014 One of the problems faced by mu- nicipalities and brought up in the MAC Average Annual Site Visits minutes was nonpayment of taxes 8000 – mainly because deferrals were al- 7116 7000 lowed on newly constructed real es- 6195 tate parcels and plats which reduced 6000 tax collections and strapped the cit- 5000 ies. Numerous school constructions which exceeded ability of taxpayers to 4000 Downloads pay also contributed to budget prob- 3000 2456 lems. 2000 1649 907 1000 MAC proposed a ready solution to 419 282 the budget woes: refunding of bonds 0 as they came due, and in particular Law Firms Financial Brokers Commercial Rating Investment Govts & for special obligation bonds, avoid- Advisors Banks Agency Advisor Other ing the placement of a school or mu- nicipality in the position of risking Note: 3-year average annual site visits total 19,025 default. The minutes proposed that a firm financial program be put in place REPORTS from page 1 to help cities navigate their way out of current and refunded obligations and Members download reports from MAC’s website for a variety of rea- began to develop refunding plans for sons. Some need access to conduct credit analysis of a municipal issuer cities including East Detroit, Royal and others click in search of primary “Source” disclosures for Preliminary Oak and Lincoln Park. and Final Official Statements, that are posted to the Municipal Security Rulemaking Board’s Electronic Municipal Access portal commonly re- Throughout the remaining years of ferred to as EMMA. the 1930s the volume of refunding bonds managed by the MAC became But it does not stop there. The MAC’s website statistical analysis indi- a major source of operating revenue. cates members also access the site’s reporting features to support requests In 1933 refunding commissions were for bond rating confirmations, to investigate outstanding bonds and 20+% of expenses. The minutes are si- identify potential for refunding opportunities, to structure new debt and lent as to whether the MAC held the in a credit monitoring capacity for file and compliance documentation. bonds on its books or if another entity ultimately purchased the bonds. In total, MAC provides members with 23 comprehensive credit and data reports and in 2014 the top 10 accounted for thousands of down- The minutes chronicled MAC’s loads, with the Direct Debt Bond Maturity Report leading the pack, growing sphere of influence in De- downloaded 7,358 times, followed by the Direct Debt Summary Report troit and surrounding communities downloaded 4,620 times and Overlapping Debt Report downloads total- throughout the Depression era and beyond. Look for more history, cov- ing 3,383. ering the 1930s, 1940s, and WWII, in Continued Next Page the fall newsletter. 5 MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

MAC 2014 Website Report Access Frequency Recapping of the Newer MAC Key Report Report Accessed How Often In the second quarter of 2014, the MAC made available Direct Debt Bond Maturity Report 7348 to members a new reporting feature, the “MAC Key Report”, Direct Debt Summary 4620 which effectively is a one-stop shopping for the most com- monly downloaded reports. While usage of this new report Overlapping Debt Report 3383 is very high, we have noted that some members have yet to MAC Key Report 1679 take advantage of the benefits. Indirect Debt Report 1168 Issuer Debt Statement 1121 The picture below identifies where a member will find and Direct Debt Complete Bond Info Report 777 access the yellow-colored MAC Key Report on the website. MAC Report 485 ATTACHED TO Search Direct Debt Summary 208 THE NEWSLETTER Debt-Share Partners 192 MEMBERS WILL FIND A SAMPLE Numbers in Bold: These represent new reports developed by the MAC beginning in 2014 after listening to member feedback request- MAC KEY REPORT ing enhanced reporting, data analysis and utility. See Page 8

Underwriters, traders, institutional sales repre- MAC Key Report Content Summary sentatives and member user groups specifically identified on the website access graphic (see the im- Issuer Debt Summary age on the previous page) each benefit from the ser- vices the MAC provides, including the ever popular Direct Debt by: “MAC Reports”. And since the MAC added the Key • Original Amounts Report, it has rapidly become a favorite as a one- • Outstanding Amounts stop shopping primary source of a Michigan mu- • Escrowed Amounts nicipal issuer’s direct, overlapping and indirect debt Indirect Debt by: • Purpose disclosures in Official Statements. • Gross and Net Amounts Overlapping Debt by: The costs and fees paid by members contribute • Municipal Jurisdictions to the MAC efficiently producing many highly • Gross Debt Amounts specific reports and performing a role and service • Percentage Net Debt Per Jurisdiction in the marketplace that otherwise is not provided Drill down icons are found at each of the above anywhere in Michigan. The MAC staff members are NOTE: debt levels for an Issuer’s related documents, audited proud to be key contributors in Michigan’s public financials, maturity schedules, official statements, debt finance credit and capital markets. share partners, refunding and other disclosures.

Additional Data: 4-years of U.S. Census data 6-years of total taxable property valuations

6 MAC Quarterly Newsletter Municipal Advisory Council of Michigan

Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Phone: 313-963-0420 800-337-0696 FAX: 313-963-0943 Email: [email protected] Internet: www.mi-macsite.com SPRING 2015

“MAC Quarterly” is a newsletter written for Municipal Advisory Council of Michigan members and business associates. If you have questions you would like discussed in the newsletter, please contact the MAC office. We will answer your questions or find an expert to address the topic and share the information with you in a future issue.

BOARD OF DIRECTORS MAC STAFF

Chairman Director Paul R. Stauder Alfred V. Diebel Stauder, Barch & Associates Director of Information Secretary Technologies Bill Terlesky, Sean Fulcher Fifth Third Securities Information Specialists Treasurer Jacqueline Brown Brenda Voutyras Bernadette Garr Stifel Nicolaus Debbie Prunkard

Trustees Newsletter – Content Rebecca Gersonde, Researcher/Writer/Publisher/Editor Heber Fuger Wendin Madeleine Miehls www.WriteSideOfBusiness.com Chris Manown, Raymond James & Associates, Inc

Cindy Higgins Comerica Securities

Joel Piell Miller Canfield

7 This report is prepared by the Municipal Advisory Council of Michigan (the“MAC”) and is intended solely for the use of its members. It is not an official statement of the issuer of the securities described below and does not constitute an offering of, or a recommendation to purchase, the securities. The information in this report has been obtained from the issuer, its agents, MAC records and/or from public records prepared by various local, county or state agencies of the State of Michigan. The MAC has not independently confirmed or verified the information in this report and does not guarantee the completeness or accuracy of such information. The information is provided without any subjective assumptions, opinions, or views of the MAC. The MAC is not associated with the State of Michigan or any other government entity. Municipal Advisory Council of Michigan Buhl Building - 535 Griswold, Suite 1850 - Detroit, Michigan 48226-3699 313-963-0420 800-337-0696 Fax 313-963-0943 www.mi-macsite.com

MAC Key Report for: AUBURN HILLS - City (OAKLAND) Debt as of 04/01/2015

Debt Summary Issuer Related Documents

2010 Census: 21,412 Taxable Value 2014 1,577,498,310 2013 1,607,575,950 2012 1,657,896,725 2011 1,787,965,120 2010 1,949,782,800

Debt Type Debt Outstanding Escrowed Self-supporting Net Per Cap. % of TV Direct Debt $6,335,000 $0 $1,985,000 $4,350,000 Indirect Debt $4,357,602 $0 $0 $4,357,602 Total Direct & Indirect Debt $8,707,602 $406.67 0.55% Overlapping Debt $60,738,959 $60,738,959 $2,836.68 3.85%

Total Debt Outstanding $69,446,561 $3,243.35 4.40%

---Census figures are obtained directly from the U.S. Census Bureau. ---Taxable Value is a static value reported by the State of Michigan annually. ---Direct Debt is the sum of the total bonded debt of the issuer. ---Indirect Debt is bonded debt issued by another the legal entity for which subject entity is legally responsible for repayment (ie. Drainage Districts). ---Overlapping Debt is the issuer’s proportionate share of the debt of other local governmental units that either overlap it (the issuer is located either wholly or partly within the geographic limits of the other units) or underlie it (the other units are located within the geographic limits of the issuer, ie. School District to City). The debt is generally apportioned based upon relative assessed values.

4/1/2015 11:04:34 AM Municipal Advisory Council of Michigan Page 1 of 4 This report is prepared by the Municipal Advisory Council of Michigan (the“MAC”) and is intended solely for the use of its members. It is not an official statement of the issuer of the securities described below and does not constitute an offering of, or a recommendation to purchase, the securities. The information in this report has been obtained from the issuer, its agents, MAC records and/or from public records prepared by various local, county or state agencies of the State of Michigan. The MAC has not independently confirmed or verified the information in this report and does not guarantee the completeness or accuracy of such information. The information is provided without any subjective assumptions, opinions, or views of the MAC. The MAC is not associated with the State of Michigan or any other government entity. MAC Key Report for: AUBURN HILLS - City (OAKLAND) Debt as of 04/01/2015

Direct Debt Municipal City of View Issue Debt Shared MAC Report Official Statement / Security Report AUBURN HILLS Additional Related Documents Refunding Issue Sub Dated Sub# Description - Purpose Gross Municipality's Portion Reports Cusip Debt Type Note Original Amt Outstanding Outstanding - Escrowed = Net Amt

| 09/16/09 GO LT XSEC 1- Refunds 4/28/99 (10/17) - Building 10,400 M 4,350 M $4,350 M 0 M 4,350,000 XF XEN QTE 050289 Shared N XUSA RF GO Subtotal 4,350 M $4,350 M 0 M 4,350,000

| 09/23/09 REV XT XSEC 1- - Utilities Sewer 1,299 M 1,090 M $1,090 M 0 M 1,090,000 XF XEN XTD NA Shared N XUSA XR | 09/23/09 REV XT XSEC 1- NPS Galloway Cr. - Utilities Water Waste 936 M 785 M $785 M 0 M 785,000 XF XEN XTD 050289 Shared N XUSA XR | 09/23/09 REV XT XSEC 1- MMBA--Amt. repnts % of payback. See orig. 129 M 110 M $110 M 0 M 110,000 XF XEN XTD sched. DEQ 5295-01 - Utilities Water Waste 050289 Shared N XUSA XR REV Subtotal 1,985 M $1,985 M 0 M 1,985,000

Grand Total 6,335 M $6,335 M 0 M 6,335,000

4/1/2015 11:04:34 AM Municipal Advisory Council of Michigan Page 2 of 4 This report is prepared by the Municipal Advisory Council of Michigan (the“MAC”) and is intended solely for the use of its members. It is not an official statement of the issuer of the securities described below and does not constitute an offering of, or a recommendation to purchase, the securities. The information in this report has been obtained from the issuer, its agents, MAC records and/or from public records prepared by various local, county or state agencies of the State of Michigan. The MAC has not independently confirmed or verified the information in this report and does not guarantee the completeness or accuracy of such information. The information is provided without any subjective assumptions, opinions, or views of the MAC. The MAC is not associated with the State of Michigan or any other government entity. MAC Key Report for: AUBURN HILLS - City (OAKLAND) Debt as of 04/01/2015

Indirect Debt Municipal City of AUBURN HILLS - OAKLAND

Municipal County of OAKLAND View Issue Debt Shared MAC Report Official Statement / Security Report Issue|Share|Mac/OS Type O. Secur. Dated Purpose Gross Net | | GOSA 07/01/1996 1 - John E Olsen Drain John E. Olsen - Utilities Drainage 150,000 150,000 Outstanding: 150,000 150,000 Municipal Drainage District of OAKLAND-MACOMB INTERCEPTOR DRAIN View Issue Debt Shared MAC Report Official Statement / Security Report Issue|Share|Mac/OS Type O. Secur. Dated Purpose Gross Net | | GOSA 01/22/2010 1 - Drain - SRF #5368-01 - 2010A - Utilities Drainage 758,539 758,539 | | GOSA 05/01/2010 1 - RZEDB Drain Series B LTGO Drain Series B - Utilities Drainage 192,238 192,238 | | GOSA 12/16/2011 1 - MFA - Drain DEQ 5368-02 - Utilities Drainage 995,637 995,637 | | GOSA 07/01/2013 1 - SRF - Series 2013A - Utilities Drainage 2,261,189 2,261,189 Outstanding: 4,207,602 4,207,602

Outstanding: 4,357,602 4,357,602

4/1/2015 11:04:34 AM Municipal Advisory Council of Michigan Page 3 of 4 This report is prepared by the Municipal Advisory Council of Michigan (the“MAC”) and is intended solely for the use of its members. It is not an official statement of the issuer of the securities described below and does not constitute an offering of, or a recommendation to purchase, the securities. The information in this report has been obtained from the issuer, its agents, MAC records and/or from public records prepared by various local, county or state agencies of the State of Michigan. The MAC has not independently confirmed or verified the information in this report and does not guarantee the completeness or accuracy of such information. The information is provided without any subjective assumptions, opinions, or views of the MAC. The MAC is not associated with the State of Michigan or any other government entity. MAC Key Report for: AUBURN HILLS - City (OAKLAND) Debt as of 04/01/2015

Overlapping Debt

Taxable Value Year Population 2014 1,577,498,310 2011 21,412 2013 1,607,575,950 2010 21,412 2012 1,657,896,725 2008 19,837 2011 1,787,965,120 2007 19,837 2010 1,949,782,800 2009 2,213,926,430

Overlapping Debt as of 04/01/2015 Net Tax % Municipality Supported Debt Share School District 22.50 AVONDALE (OAKLAND) 129,496,600 29,136,735 0.03 LAKE ORION (OAKLAND) 132,650,845 39,795 53.37 PONTIAC (OAKLAND) 28,276,135 15,090,973 0.48 ROCHESTER (OAKLAND) 102,305,000 491,064 School District Total: 44,758,567 County 3.15 OAKLAND 448,417,894 14,125,164 County Total: 14,125,164 Intermediate School District 3.16 OAKLAND I/S/D 55,625,000 1,757,750 Intermediate School District Total: 1,757,750 Community College 3.17 OAKLAND COMMUNITY COLLEGE 3,075,000 97,478 Community College Total: 97,478

60,738,959

4/1/2015 11:04:34 AM Municipal Advisory Council of Michigan Page 4 of 4