June 9, 2016
Ehlers Minnesota Education Team 

The outstanding Ehlers Education Team:  Jodie Zesbaugh, Gary Olsen, Jeff Seeley, Betsy Knoche,  Andrea Uhl, Greg Crowe, and Joel Sutter. Tom Berge and Shelby McQuay not pictured.

Change in Leadership for Ehlers' Education Team 
Principal Transition 

Joel Sutter has served as Team Leader and Principal of the Ehlers Education Team for over 18 years, guiding the team through a time of tremendous growth and change. That will all change on July 1, when Joel steps down as Principal and Greg Crowe assumes that position. Sutter explained "while I am not ready to retire, I strongly believe it will benefit both Ehlers and our clients to turn the leadership of the team over to someone younger who can take our team into the next generation. And this change will allow me to focus more of my time on working with clients, improving Ehlers services, and mentoring younger employees." Joel will continue working at Ehlers full-time as a Senior Municipal Advisor.
Greg Crowe has worked at Ehlers since 2012, after serving as a fiscal analyst specializing in school finance for the Minnesota House of Representatives for nearly 20 years. Ehlers President Steve Apfelbacher said "Greg has very quickly established himself as an excellent municipal advisor and a leader in the fields of school finance and public finance. I am confident he will be an excellent leader for our Education Team." For most of our clients, this transition will not have any direct impact on your work with Ehlers. The Principal position is a part-time assignment, so Greg's primary focus will remain on providing client services.

Introducing Our New Municipal Advisor 
Shelby McQuay Joins Ehlers' MN Education Team 

We are very pleased to announce that Shelby McQuay has agreed to join the Education Team as an MA in the MN office. Shelby has been employed for the last 12 years at the Minnesota Senate as a non-partisan research analyst and a fiscal analyst, working on education finance and tax policy. Most recently, she helped craft language and review the financial implications of the School Building Agricultural Credit, and the tax credit for Maximum Effort Capital Loan districts, so our clients should be ready to discuss those issues with her immediately!

Shelby has an MS in mathematics from Marquette University, and an MA in public policy and a PhD in Geophysical Science from the University of Chicago, and is a graduate of Blaine High School. She started at Ehlers on May 31, after the end of the legislative session.

New Federally Required Disclosure to Ehlers Clients 
Written Municipal Advisor Client Disclosure 

In the next week or two, most Ehlers clients will receive an email from us with an attached document titled "Written Municipal Advisor Client Disclosure." This is a new requirement stemming from federal rules adopted pursuant to the 2010 Dodd-Frank Act regulating "Municipal Advisors." Effective June 23, 2016 Ehlers will be required to make certain disclosures before providing any of our clients with financial advice.
For most clients, the first e-mail they receive on this topic will contain a disclosure covering any general advice we may provide to you through the end of this calendar year. This allows us to respond to questions you may have pertaining to your existing debt issues, options for future financing and anything not related to a specific project we are working on. We will send you a new letter prior to the beginning of each successive calendar year.
If we are working on a specific project with you, you will also receive another e-mail which will provide a similar disclosure related to the debt financing for that specific project. We must provide these disclosures for any financing that will close on June 23 or later, which is why you might get something now even though the work is already underway. In the future, we will be able to begin debt planning work for you under the annual disclosure document, and will then provide a separate disclosure once a determination has been made to move forward with a specific debt issuance.
Please note that there is no requirement for you to respond to these disclosures. They do not change the basis of our relationship or result in new fees. They simply provide us with the ability to continue to interact with you and to provide independent advice as we have always done.
If you have any questions after receiving these messages and written disclosures, please contact us.

Operating Referendums 
Ehlers is Ready to Help 

Many Minnesota school districts will be holding operating referendum elections this fall, as they do every year. Districts wishing to vote in November must adopt a formal resolution calling for the election and furnish a copy of the ballot to the County Auditor and Commissioner of Education by August 26, 2016.
With recent Legislative changes, operating referendums have become even more complicated. Districts must deal with Local Optional Revenue (LOR), Reduction to Referendum Authorities due to LOR, Board Created Authority, Board Converted Authority, and Voter Approved Authority, in addition to the need for additional authority.

Ehlers is ready to help you sort through all of these complications and prepare for an election. We offer a complete array of services to assist you. We have developed a very detailed referendum projection model that allows us to accurately estimate the revenue, levy, and state aid for various referendum options, as well as the estimated tax impact on various values of property. We can work withyour legal counsel on the preparation of the ballot and required notice to taxpayers and can provide a variety of other services to assist in your referendum efforts. For a complete list of our services see our website or contact a member of the Education Team.

Legislative Update 
Important Provisions in Omnibus Tax and Budget Bills 

Another Legislative Session has ended, and there are several important provisions included in the omnibus tax and omnibus budget bills that will affect school district budgets and facilities planning. The Governor signed the omnibus supplemental budget bill, but not the omnibus tax bill, so the items that are indicated as having come from the tax bill are included for information only, in case there is a special session. 
Since this was a "non-budget" year, we intend to only highlight the major changes, and primarily those in the facilities area. There were many smaller changes that might affect some districts but not others.

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The information contained herein reflects, as of the date hereof, the view of Ehlers & Associates, Inc. (or its applicable affiliate providing this publication) ("Ehlers") and sources believed by Ehlers to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein. In addition, there can be no guarantee that any projection, forecast or opinion in these materials will be realized. Past performance is neither indicative of, nor a guarantee of, future results. The views expressed herein may change at any time subsequent to the date of publication hereof. These materials are provided for informational purposes only, and under no circumstances may any information contained herein be construed as "advice" within the meaning of Section 15B of the Securities and Exchange Act of 1934, or otherwise relied upon by you in determining a course of action in connection with any current or prospective undertakings relative to any municipal financial product or issuance of municipal securities. Ehlers does not provide tax, legal or accounting advice. You should, in considering these materials, discuss your financial circumstances and needs with professionals in those areas before making any decisions. Any information contained herein may not be construed as any sales or marketing materials in respect of, or an offer or solicitation of municipal advisory service provided by Ehlers, or any affiliate or agent thereof. References to specific issuances of municipal securities or municipal financial products are presented solely in the context of industry analysis and are not to be considered recommendations by Ehlers.