School District Levy and Bond Overview

School Board Bond Planning Update September 30, 2024 Cory Plager Managing Director cplager@dadco.com (509) 462-6370 Dave Trageser Managing Director dtrageser@dadco.com (206) 903-8699

Levy and Bond Overview Educational Programs & Operations Levies (EP&O) Capital Projects Levies School Bonds Common uses: school construction and renovations, technology, safety, security, facility renovations, athletic fields, repair roofs, HVAC, parking, etc. Up to 6 years collection Simple Majority 50% +1 Current Capital Levy approved by voters through 2026 Flexible revenue from taxpayers for local programs but also supplementing basic/special education Subject to per pupil levy lid laws Up to 4 years collection Simple Majority 50% +1 Current EP&O approved by voters in 2022 through 2026 Bonds are for buildings (new construction and renovation) Up to 40 years until final maturity (20-25 most common) Super Majority 60% Tax-Exempt Interest Rates Last bond approved in 1998 ($2.4MM) 2024 Debt Capacity: $149MM 2 Source: EHJR 4204, RCW 84.52.053

Levy and Bond Overview Sultan School District Election Passage Rate History 69.4% 64.8% 62.8% 62.5% 61.7% 61.6% 58.1% 57.8% 56.3% 53.8% 53.3% 47.2% 46.8% 46.7% 43.5% 11/1997 Bond 2/1998 Bond 2/2002 EP&O 2/2006 EP&O 5/2006 EP&O 2/2010 EP&O 2/2014 EP&O 2/2016 Bond 2/2018 Capital Projects 2/2018 EP&O 2/2022 Capital Projects 2/2022 EP&O 4/2022 Capital Projects 4/2022 EP&O 2/2024 Bond Capital Projects/Technology Levy (50%+1 Approval) Bond (60%+1 Approval) Educational Program & Oprations Levy (50%+1 Approval) Transportation Vehicle Levy (50%+1 Approval) 3 Source: OSPI 1463-GF, 1463-BI

Property Values and School Taxes Sultan School District Bond Assessed Valuation $3,263,318,760 $3,137,082,926 $3,056,551,589 Over $250 Million in New Construction in the last five years $2,310,814,893 $1,995,327,861 $1,633,490,158 $1,480,358,372 $1,422,509,999 $1,331,820,932 $1,284,294,755 $1,215,440,605 $1,169,175,389 $1,078,240,543 $1,052,620,621 $972,548,512 $927,755,647 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, *preliminary 4

Property Values and School Taxes If property values increase equally (20%), the same tax amount would be due assuming the same levy amount: 5

Property Values and School Taxes If property values increase equally (20%), and a new house is built, the new house may reduce others tax bills 6

Property Values and School Taxes Sultan School District Local School Tax Rates/$1,000 $4.45 $4.11 $4.02 $0.27 $0.24 $3.57 $0.22 $2.37 $2.10 $2.10 $2.07 $2.02 $2.01 $4.18 $3.87 $0.92 $3.80 $0.53 $0.54 $3.57 $0.52 $0.54 $0.80 $1.57 $1.56 $1.50 $1.47 $1.45 $1.26 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EP&O Capital Projects Levy School Bond 7 Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report

Property Values and School Taxes Snohomish County School Districts 2024 Total Tax Rates(1) Assessed Value(2) ($) District Bonds ($) EP&O ($) Capital ($) Total ($) Snohomish School District No. 201 15,907,951,331 1.7906 1.6968 0.5655 4.0529 Everett School District No. 2 34,045,096,620 0.1323 1.8362 1.6133 3.5819 Lake Stevens School District No. 4 11,224,774,489 1.2036 1.7690 0.2235 3.1961 Granite Falls School District No. 332 3,432,070,715 1.2873 1.4435 0.2146 2.9454 Northshore School District No. 417 20,977,755,582 1.2923 1.2612 0.3885 2.9420 Mukilteo School District No. 6 29,707,225,486 0.8770 1.5308 0.5076 2.9154 Edmonds School District No. 15 49,536,544,672 0.3684 1.2664 1.0934 2.7282 Lakewood School District No. 306 4,270,247,925 1.1239 1.6002 - 2.7241 Marysville School District No. 25 14,222,363,155 0.6750 1.7677 - 2.4426 Sultan School District No. 311 3,000,862,210 - 1.4472 0.9192 2.3664 Stanwood-Camano School District No. 401 4,753,523,821 0.9592 1.2801 - 2.2392 Monroe School District No. 103 11,225,641,956 0.6734 1.5023 - 2.1758 Arlington School District No. 16 7,860,907,113 - 1.2467 0.8419 2.0886 Darrington School District No. 330 603,235,235 - 1.3778 - 1.3778 Index School District No. 63 210,628,688 - 0.3934 - 0.3934 (1) 2024 Bond Assessed Value does not include TAV. (2) Snohomish County values only. Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, 8

Bond and Tax Rate Planning 9

Bond and Tax Rate Planning Assumptions November 2024 Bond Election Sale Dates: 12/1/2024 and 12/1/2025 Term: 20 Years Current Assumptions: Conservative assessed valuation growth: 3% in 2026, followed by 2.5% thereafter District continues EP&O levy at a tax rate of $1.50/$1,000 and new technology levy of $0.25 starting in 2027 Existing Capital Projects Levy expires after 2026 10

Bond and Tax Rate Planning Assumptions continued: Today s market rates plus 0.5% interest rate cushion in 2024 and 0.75% for second sale in 2025 Avg. interest rate assumption of 4.55% for the first sale, and 4.89% for second sale (including cushion) May be refunded in future, saving local taxpayers depending on market conditions 11

Bond and Tax Rate Planning Sultan School District November 2024 Bond Election - $79,715,000 Projected Tax Rates/$1,000 $4.96 $4.45 $0.31 $4.39 $4.11 $4.02 $0.27 $0.29 $0.24 $3.57 $0.22 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.37 $3.37 $0.72 $0.84 $2.37 $1.63 $1.63 $1.63 $1.63 $1.63 $1.63 $2.10 $2.10 $2.07 $2.02 $2.01 $4.65 $1.03 $4.18 $4.11 $0.98 $3.87 $0.92 $3.80 $0.53 $0.54 $3.57 $0.52 $0.54 $0.80 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $1.62 $1.57 $1.56 $1.55 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.47 $1.45 $1.26 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* 2026* 2027* 2028* 2029* 2030* 2031* 2032*+ EP&O Capital Projects Levy New Tech Levy School Bond 12 Source: State of Washington, Office of Superintendent of Public Instruction, County Assessor Annual Report, *estimate

Bond and Tax Rate Planning Estimate - Taxpayer Impact Proposed November 2024 Sultan SD Bond $79,715,000 Projected Bond Tax Rate in 2025 $0.84 per $1,000 $426.30 per year Estimated Change in Tax Amount per $500,000 Property Value from 2024 to 2025 $35.53 per month *Some senior citizens and people with disabilities may be eligible for property tax exemptions, visit whatcomcounty.us for more details 13

Bond and Tax Rate Planning Sultan School District Average Sultan School District Tax Amount Average Single Family Home Tax Amount Example Existing Capital Levy Proposed Bond With the current Capital Projects Levy expiring in 2026, the bond will continue at the same combined tax rate through the year 2045. $371 $426 $874 $865 $857 $848 $531 $497 $460 2024 2025 2026 2027 2028 2029 2030 Average Single-Family Home Assessed Values Projected 2024 2025 2026 2027 2028 2029 2030 $500,000 $507,500 $515,113 $520,264 $525,466 $530,721 $536,028 14

Bond and Tax Rate Planning What if we ran a Capital Levy Instead? A six-year capital levy, at the proposed tax rates as the projected bond generates as estimated $28,483,000 To generate a $79,715,000 capital levy amount you would need a tax rate near $4.00/$1,000 over six-years Capital Levies are collected locally and customarily have no interest associated with them, however there are challenges with timing/cash flow/construction inflation while awaiting tax collections 15

Cory Plager Managing Director (509) 462-6370 cplager@dadco.com Dave Trageser Managing Director (206) 903-8699 dtrageser@dadco.com DA DAVIDSON OFFERS: Bond and Levy Planning Attend and Present at Facility/Community Meetings Market and Sell Bonds Maura Lentini Sr. Vice President (206) 903-8687 mlentini@dadco.com Suzanne Eide Sr. Vice President (206) 903-8690 seide@dadco.com Long Range Capital Financing Credit Evaluation and Ratings Presentations Continuing Disclosure Compliance Crystal Vogl Vice President (406) 791-7214 cvogl@dadco.com Mark Froio Sr. Vice President (206) 903-8690 mfroio@dadco.com Annual Debt Service Fund Cash Flows Tax Rate Projections Budget Support and Notes to the Financials Arbitrage Rebate Support Hannah Bulla Associate (509) 462-6370 hbulla@dadco.com Monitor Potential Refunding Savings

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