Notes

Outline

"Project Financing Presentation"    Project Financing Presentation    to

Capital Markets Advisors, LLC Independent Financial Advisor to local governments Assists local governments and school districts as they borrow money to fund capital projects and cash flow needs Does not serve as an underwriter or loan money Clients include towns of North Hempstead and East Hampton, villages of Great Neck Plaza and Roslyn and Great Neck and Port Washington schools. Services Provided Assist in providing information to elected officials and members of the public on financing projects Prepare disclosure and sale documentation Assist in securing a credit rating Assist in securing credit enhancement Structure bond and note financings Run sales and closings of debt

Village of Munsey Park Proposed Capital Project – reconstruction and repaving of various Village roads To be completed in stages over a period of years Assigned a useful life of 15 years under NYS Local Finance Law Proposition states maximum cost of project is $6.65 million with up to $6 million to be funded with debt proceeds Financing options Bond anticipation notes (“BANs”) Short-term debt instruments that are typically issued for one year and renewed for up to five years Interest on note paid at maturity each year from budgeted funds Principal amortization must commence by end of second year Serial Bonds Long-term debt instruments that are typically issued for between 5 and 30 years Interest on bonds is paid semiannually from budgeted funds, typically commencing after one year Principal amortization must commence by end of second year Since a long-term loan rates are higher than one-year note rates

Credit Rating Process Three major credit rating agencies: Moody’s Investors Service Standard & Poor’s Corporation Fitch Ratings Four key credit criteria Management Elected officials, in-house staff and outside consultants Debt Amount outstanding, term, purpose, repayment schedule Economic and Demographic factors Wealth levels, real property values, largest employers and taxpayers Finances Budget-to-actual performance, fund balances

Market Conditions Bonds versus notes Market conditions and recent sale results Rye City Schools (AAA) sold $22,685,000 bonds on 4/13/05 with a term of 18 years at 3.98% Town of Brookhaven (Aa3) sold $4,75,000 bonds on 4/5/05 with a term of 8 years at 3.46% City of Glen Cove (Baa2) sold $8,333,228 notes on 4/12/05 with a term of 1 year at 3.18% Town of East Hampton (Aa1) sold $3,250,000 notes on 3/2/05 with a term of 1 year at 2.50% Budget impact Costs of issuance Model financing scenario 15-year serial bond issue Lock in low, long-term rates Eliminate market risk Minimize costs of issuance Amortization of interest after one year Amortization of principal after two years Level debt structure

$3,000,000 Serial Bonds, 2005 – Phase I (D&F Roads)   Debt Service and Annual Impact at current rates plus ¼%  Fiscal Principal    Interest           Interest Total Annual   Year Payment       Rate          Payment     Payment 5/31/2007              0            $113,665.00              $ 113,665.00 5/31/2008 $170,000     3.30%         113,665.00   283,665.00 5/31/2009   175,000     3.13%         108,514.00   283,514.00 5/31/2010   180,000     3.24%         103,036.50   283,036.50 5/31/2011   185,000     3.35%           97,204.50   282,204.50 5/31/2012   195,000     3.49%           91,007.00   286,007.00 5/31/2013   200,000     3.62%           84,201.50   284,201.50 5/31/2014   205,000     3.75%           76,961.50   281,961.50 5/31/2015   215,000     3.85%           69,274.00   284,274.00 5/31/2016   225,000     3.95%           60,996.50   285,996.50 5/31/2017   230,000     4.04%           52,109.00   282,109.00 5/31/2018   240,000     4.11%           42,817.00   282,817.00 5/31/2019   250,000     4.17%           32,953.00   282,953.00 5/31/2020   260,000     4.22%           22,528.00   282,528.00 5/31/2021   270,000     4.28%           11,556.25   281,556.00      Total                  $3,000,000    $1,080,488.50            $4,080,488.50

Tentative Financing Schedule May 4, 2005: Bond vote If approved by voters, bond resolution is published once in official Village newspaper triggering a 20-day estoppel period Week of May 9, 2005: Size and structure issue and prepare sale documents Week of May 16, 2005: review of documents by Village officials and Bond Counsel Week of May 23, 2005: Rating agency presentation June 1, 2005: Mail sale documents to potential investors June 9, 2005: Bond Sale at NYC office of CMA June 16, 2005: Bond closing at offices of Bond Counsel.       Bond proceeds invested.