SDAO Cooperative Financing Programs

FlexLease
Asset Acquisition Program

FlexLease is a financing program which enables SDAO members to finance projects at flexible terms and competitive market rates.

FlexLease is a proven alternative to traditional forms of financing capital assets. FlexLease offers districts attractive tax-exempt rates, precise and quantifiable costs of borrowing, “user-friendly” documentation, flexible payment terms, prepayment options, fixed rate financing and 100% financing with no down payment required.

The costs associated with financing the projects, such as program administration fees, legal fees and trustee fees, are capitalized, or included in the amount to be financed.

With FlexLease, districts can maintain cash reserves, acquire essential equipment or real property quickly and conveniently, retain the benefits of ownership, and finance property over its useful life.

The average length of time to complete a financing transaction is 45 days for equipment and 60 days for real property.

SDAO members with smaller voter-approved general obligation bonds also may be included in a FlexLease financing. For districts contemplating a general obligation bond measure, legal counsel to FlexLease will prepare the ballot title free of charge. The FlexLease Program also may be used to refinance existing obligations, such as bank and USDA Rural Development loans, at lower rates.

Examples of projects financed through the FlexLease Program include:

Equipment Purchases

• Fire trucks
• Rescue and utility vehicles
• Computer equipment
• Telecommunications equipment
• Hospital equipment
• Transportation vehicles and buses
• Park and playground equipment

Real Property

• Land
• New building construction
• Remodeling and improvements

FlexTran
Cash Flow Borrowing Program

Many Oregon special districts face short-term cash flow deficits, primarily between the beginning of the fiscal year on July 1 and the first receipt of property tax revenue in late November. SDAO’s FlexTran Program, administered by Robert W. Baird & Co, offers Oregon’s special districts a short-term financing tool to help meet immediate expenditures prior to receipt of the current years’ property tax collections or other legally budgeted revenues.

Short-Term Borrowing
FlexTran can provide reduced short-term interest rates and borrowing costs. Each district issues its own tax and revenue anticipation notes, using the note proceeds to meet short-term cash flow needs. Districts may invest corresponding tax revenues for the remainder of the fiscal year. At maturity (approximately one year), each district pays the principal and interest due on the Notes.

The FlexTran Program utilizes the corporate trust services of US Bank, NA, Portland, Oregon (the Trustee). The Trustee provides separate account administration for each of the participating districts and receives payments due under the Notes for the benefit of the investors.

To participate in the FlexTran Program, the following information is needed:

• Adopted or Proposed Budget for the upcoming fiscal year
• Monthly Cash Flow Certificate
• Authorized Borrowing Resolution
• Audited Financial Statement for the last two fiscal years (or equivalent financial statements)
• A Working Capital Reserve Worksheet

Robert W. Baird & Co is the Program Administrator and Underwriter for SDAO’s sponsored FlexLease and FlexTran programs.

For more information about SDAO’s Cooperative Financing Programs contact:

David Ulbricht, Managing Director
Phone: 800-792-2473 ext. 3827
Mobile: 503-701-7774

Robert W. Baird & Co
111 SW 5th Avenue, Suite 2250
Portland, Oregon 97204
Toll-free: 800-792-2473
Fax: 877-792-3230
www.rwbaird.com/publicfinance

Credit Union

Membership at First Tech Credit Union is available to all eligible officials, employees and volunteers of SDAO member districts who are not served by another credit union.  First Tech is a financial cooperative owned by its members. Instead of paying a group of stockholders, profits are returned to our members in the form of better savings/loan rates and improved services. Membership is good for a lifetime, even if you change jobs or retire. And once you open an account your relatives are also eligible to join.

First Tech Credit Union offers SDAO members an online wellness page where users can find financial wellness articles, tools, and calculators.

They also offer a full range of financial services including:

• Checking accounts
• Loans for all needs including First Mortgage and Home Equity
• Around the clock account access including NO FEE Online banking and Bill pay
• Visa Check and Credit Cards
• Financial planning and insurance services available
• Many NO FEE services available
• THERE’S NO FEE TO BECOME A MEMBER

First Tech has been serving Oregonians statewide since 1952, and would be pleased to have you as a member. First Tech branches are in Beaverton, Hillsboro, Portland, Salem, and Eugene and all services are easily accessed via internet at 1sttech.com, phone 800-637-0852, mail, fax, and ATM.