Fiscal Year 2015

Transcription

Fiscal Year 2015

2015
Annual Report
Since its creation in 1979, WHEFA has completed
totaling more than
790 financings
$22.1 billion and representing more than
$9.4 billion in new money capital projects, supporting more than
5,300 jobs on average annually in the Badger State.
Executive Director’s Letter
On behalf of the Members and staff of the Wisconsin Health and Educational Facilities Authority (WHEFA), I am pleased to
present this Annual Report of WHEFA activity for our fiscal year ending June 30, 2015 (FY2015).
By the Numbers - FY2015
This annual report highlights another successful year in WHEFA’s 36-year history. During FY2015, WHEFA completed
37 tax-exempt bond financings totaling more than $1.47 billion on behalf of various Wisconsin non-profit institutions
(including certain of their out-of-state affiliates).
WHEFA new money capital financings in FY2015 helped to provide an estimated 829 new jobs at the financed facilities
and an estimated 2,134 jobs related to the construction of such new capital projects. Additionally, WHEFA refinancings
in FY2015 enabled certain borrowers to save more than $59 million in future interest payments by providing them with
access to lower cost refinancing of their outstanding debt. In total, 30 different non-profit borrowers, employing over
39,000 persons, benefited from the issuance of tax-exempt bonds by WHEFA in FY2015.
WHEFA is a Great Resource
As I travel the state and talk and meet with various organizations, my overall message is clear – WHEFA is a great, no-cost resource. Please let us know how
we can help.
Our mission is simple: to assist Wisconsin’s non-profit institutions to obtain access to low-cost capital in order to finance or refinance their building and
equipment improvements and expansion needs. Regardless of whether or not WHEFA is involved in the ultimate issuance of bonds for a particular project or
refinancing, WHEFA is a wonderful resource when researching and evaluating various financing options. I encourage all organizations to call when contemplating
a borrowing for a new money project or refinancing. Irrespective of the ultimate plan of finance, WHEFA is here to help.
Looking Forward - FY2015 and Beyond
Having completed 790 financings totaling over $22.1 billion in the past 36 years, the Members and staff are proud of our accomplishments and we all look
forward to continuing to fulfill our mission of ensuring competitive access to low-cost capital financings for all Wisconsin non-profit institutions for many years
to come.
Best regards,
Dennis P. Reilly
Executive Director
“This fiscal year, WHEFA helped create 829 new jobs in Wisconsin by providing
non-profit organizations with access to low-cost capital. We look forward to
continuing our partnership with them as more non-profit institutions seek to
expand and create jobs right here in Wisconsin.”
- Governor Scott Walker
Contents
Mission & Vision Statements..............................................................................
2
Location of WHEFA Borrowers......................................................................... 24 - 25
WHEFA...................................................................................................................... 2 - 3
Charts of WHEFA Activity................................................................................... 26 - 28
WHEFA Members, Staff and Consultants........................................................ 3 - 4
Independent Auditors’ Report......................................................................... On CD
The Year in Review................................................................................................ 5 - 23
Financial Statements.......................................................................................... On CD
Mission Statement
The Wisconsin Health and Educational Facilities Authority (“WHEFA”) assists all eligible borrowers to obtain and maintain access to the broadest range of low cost,
private capital market funding possible.
Vision Statement
WHEFA will be an ally to borrowers fulfilling its mission by providing prompt, user friendly services including communication, education, and advocacy directed towards
borrowers, lenders, government, the public, trade associations, and financing team participants.
WHEFA’s ability to be successful is dependent on effective Member leadership and a staff that can provide operational excellence. This success will require Members
and staff who are well informed about the industries served and who stay abreast of financing needs and options; they will exercise strong oversight using performance
indicators to ensure strategic objectives are being identified and met; and employee policies and incentives that provide for the recruitment and retention of high
quality, experienced staff to implement programs and services.
WHEFA
WHEFA, created by the Legislature in 1973 (Chapter 231, Wisconsin Statutes), has been providing active capital financing assistance to Wisconsin non-profit health care
institutions since 1979. Over the years, the Wisconsin legislature has expanded the types of non-profit entities eligible for WHEFA financing assistance. In July 2013,
WHEFA’s charter was permanently expanded to permit all Wisconsin 501(c)(3) non-profit organizations access to WHEFA’s low-cost capital financing.
Funds for each project financed by WHEFA are obtained through the sale of revenue bonds of WHEFA. Bonds are sold to institutional lenders in “direct placement”
transactions and to individual and institutional investors in “public offerings”. Bond sale proceeds are loaned by WHEFA to the borrowing institution or project sponsor.
No state or other public funds are used.
WHEFA’s bonds are payable solely out of loan repayments from the borrowing institution, sponsor or guarantor. They are not a debt, liability, or “moral” obligation of
the State of Wisconsin or any of its political subdivisions. WHEFA has no taxing power.
The credit supporting any WHEFA bond issue is the credit of the borrowing institution involved. The availability of financing and its terms and conditions depends in
each case upon the credit-worthiness of each borrower. Interest paid on WHEFA bonds is exempt from federal income taxation, resulting in materially lower financing
2
WHEFA 2015 Annual Report
WHEFA
(continued)
costs to the borrowing institution. Interest on bonds issued by WHEFA is not exempt from present Wisconsin income taxation, with limited exception, or unless such
exemption is already available on bonds eligible to be issued for the same purpose through another Wisconsin conduit issuer.
WHEFA Members
Richard Canter, Chairperson
Mr. Canter, a resident of Milwaukee, Wisconsin, is the former Senior Vice President for Strategy and Corporate Affairs at Wheaton Franciscan Healthcare, Inc., Glendale.
Mr. Canter was appointed as a Member in 2008. His current term expired June 30, 2015 and he continues to serve until reappointed or until a successor is appointed
by the Governor and confirmed by the Wisconsin State Senate.
Tim Size, Vice-Chairperson
Mr. Size, a resident of Madison, Wisconsin, is the Executive Director at the Rural Wisconsin Health Cooperative, Sauk City. Mr. Size was appointed as a Member in 1988.
His current term expires June 30, 2018.
James Dietsche, Member
Mr. Dietsche, a resident of DePere, Wisconsin, is Chief Financial Officer at Bellin Health, Green Bay. Mr. Dietsche was appointed as a Member in 2012. His current term
expires June 30, 2019.
Kevin Flaherty, Member
Mr. Flaherty, a resident of Milwaukee, Wisconsin, is Vice President/Relationship Manager in the Asset-Backed Lending Division of Associated Bank, NA, Milwaukee. Mr.
Flaherty was appointed as a Member in 2008. His current term expires June 30, 2017.
Paul Mathews, Member
Mr. Mathews, a resident of Milwaukee, Wisconsin, is the President and CEO at the Marcus Center for the Performing Arts, Milwaukee. Mr. Mathews was appointed as
a Member in 2014. His term expires June 30, 2021.
Jim Oppermann, Member
Mr. Oppermann, a resident of Brookfield, Wisconsin, is the Senior Vice President for Finance and Management at Alverno College, Milwaukee. Mr. Oppermann was
appointed as a Member in 2015 to fill a term that expires June 30, 2016 and serves pending confirmation by the Wisconsin State Senate.
Robert VanMeeteren, Member
Mr. VanMeeteren, a resident of Reedsburg, Wisconsin, is President/CEO of Reedsburg Area Medical Center, Reedsburg. Mr. VanMeeteren was appointed as a Member
in 2011. His current term expires June 30, 2020.
3
WHEFA Staff
Dennis P. Reilly, Executive Director
Mr. Reilly has been the Executive Director at WHEFA since October 2012. He began his career with WHEFA in 1996 and most recently served as the Associate Executive
Director. Mr. Reilly has been a member of the staff for 19 years.
Tanya L. Coppersmith, Manager of Operations & Finance
Ms. Coppersmith has been the Manager of Operations and Finance at WHEFA since 2010. She began her career with WHEFA in 1987 and most recently served as the
Operations and Finance Analyst. Ms. Coppersmith has been a member of the staff for 28 years.
Tatiana M. Graver, Manager of Finance
Ms. Graver has been the Manager of Finance at WHEFA since August 2012. Ms. Graver has been a member of the staff for three years.
Stephanie L. Schirripa, Executive Assistant
Ms. Schirripa has been the Executive Assistant at WHEFA since May 2015. She began her career with WHEFA in 2002 and most recently served as the Senior
Administrative Assistant. Ms. Schirripa has been a member of the staff for 13 years.
WHEFA Consultants
Quarles & Brady LLP
General Counsel
Quarles & Brady LLP has been General Counsel to WHEFA since 1979.
Schenck SC
Independent Auditors
Schenck SC has been Independent Auditors to WHEFA since 2001.
4
The Year In Review
WHEFA is pleased to submit its report on activities for its fiscal year 2015 (July 1, 2014 through June 30, 2015). 2015 represents WHEFA’s 36th year of fulfilling its mission
of assisting Wisconsin’s non-profit institutions to obtain access to low-cost capital in order to finance or refinance their building and equipment improvements and
expansion needs.
During fiscal year 2015, 37 financings totaling $1,478,417,098 were successfully completed. As of June 30, 2015, WHEFA has cumulatively completed 790 financings
totaling over $22.1 billion.
Financing highlights for the fiscal year ending June 30, 2015 include:
●
$445,731,520 (30%) was issued for new capital projects.
●
$1,032,685,578 (70%) was issued for refinancing existing debt.
●
11 public placements totaling $726,181,000.
●
26 private placements totaling $752,236,098.
●
22 financings totaling $715,473,598 had a variable or reset interest rate.
●
15 financings totaling $762,943,500 had a fixed interest rate.
●
8 financings for new capital only.
●
15 financings for refinancing only.
●
14 financings for both refinancing and new capital.
●
6 financings totaling $141,894,964 was issued for the following first time borrowers:
○
Dickson Hollow (Menomonee Falls)
○
Kirkland Crossings (Pewaukee)
○
Spooner Health System (Spooner)
○
The Cumberland Memorial Hospital and Extended Care Unit (Cumberland)
○
Woodland Hill Senior Housing (Hudson)
○
Woodside Senior Communities (Green Bay)
5
The Year In Review
(continued)
30 different non-profit borrowers benefited from the bond proceeds during fiscal year 2015, including:
●
10 Long-Term Care Facilities:
●
5 Single-Site Acute Care Facilities:
○
All Saints Assisted Living Center
○
The Cumberland Memorial Hospital and Extended Care Unit
○
Dickson Hollow
○
Divine Savior Healthcare
○
Felician Services
○
Fort HealthCare x 2
○
Franciscan Sisters of Christian Charity Sponsored Ministries
○
Spooner Health System
○
Kirkland Crossings
○
Vernon Memorial Healthcare
○
Marquardt Village x 2
○
Sheboygan Senior Community
○
Wisconsin Illinois Senior Housing
○
Woodland Hill Senior Housing
○
Alverno College x 2
○
Woodside Senior Communities
○
Carthage College
○
Edgewood College
○
Lawrence University of Wisconsin
○
The Medical College of Wisconsin x 2
●
7 Multi-Site Acute Care Facilities:
○
Aspirus x 2
○
Bellin Memorial Hospital
○
Hospital Sisters Services
○
ProHealth Care x 2
○
Rogers Memorial Hospital
○
ThedaCare x 2
○
Wheaton Franciscan Services
6
●
●
5 Educational Facilities:
3 Other Facilities:
○
Goodwill Industries of Southeastern Wisconsin
○
Riverfront Foundation and Riverfront Activity Center
○
Sixteenth Street Community Health Centers
INDIVIDUAL BOND ISSUES FOR THE FISCAL YEAR ENDING JUNE 30, 2015
$11,486,000
Sheboygan Senior Community
This project will create 6 permanent jobs with
an annual payroll of $112,000, as well as 89
construction jobs. 124 jobs will be retained
with an annual payroll of $3,500,000.
“WHEFA’s exceptional and knowledgeable staff has assisted
us through a successful financial journey. Sheboygan Senior
Community is very appreciative for their outstanding service
which provides us the tax-exempt financing we needed to build
our replacement Facility. A Facility that will carry on its traditions
but also will begin a new, updated way of delivering care. A way
which will provide our Resident’s a more home-like environment
with the comforts they deserve for many, many years to come.”
- Joan Kleist, Executive Director, Sheboygan Senior Community
Close Date: July 9, 2014
Sheboygan Senior Community employs
84 full-time equivalents.
Sheboygan Senior Community has been serving the Sheboygan community with senior living services meeting the full continuum of senior care needs since 1962.
Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction, and equipping of an approximately 70,000 square-foot replacement skilled nursing
(60 beds) and community based residential facility (25 beds) on a 38.5 acre parcel of land in the Town of Sheboygan for Sheboygan Senior Community. The replacement skilled nursing
facility will be comprised entirely of private rooms and will be arranged in a contemporary neighborhood design with smaller scale household units. This federally tax-exempt financing
process has enabled Sheboygan Senior Community to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.00%).
$13,000,000
This project will create 20 permanent jobs with an annual payroll of $400,000, as
well as 25 construction jobs. 320 jobs will be retained with an annual payroll of
$8,040,000. Woodside Senior Communities employs 155 full-time equivalents.
Close Date: July 11, 2014
“Our ability to access tax-exempt bond financing
for this deal played a vital role in our ability to
successfully reposition our senior living campus.
Partnering with WHEFA was a seamless process
and the services we received were excellent.”
- Scott Ross, Executive Director,
Woodside Senior Communities is comprised of three corporations serving Green Bay and the surrounding communities: Bay Area Lutheran Homes, Inc. which owns Woodside Lutheran
Home, a 130-bed skilled nursing and rehabilitation facility, and Woodside Manor, a 97-unit community based residential facility; Woodside Oaks, Inc. which owns Woodside Oaks, a 75-unit
independent senior living facility; and Woodside Haven Inc. which owns Woodside Haven, a 24-unit independent senior living facility for low-income tenants.
Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction, improvement, remodeling and equipping of Woodside Senior Communities’
skilled nursing facility, community based residential facility and other senior living facilities, including the construction and equipping of an addition to its existing 97-unit CBRF (known as
Woodside Manor) to add 20 memory care units, and the renovation and remodeling of its existing 130-bed skilled nursing facility (known as Woodside Lutheran Home) to renovate certain
resident units, to provide a new rehabilitation center and new therapy area, and to make certain other capital expenditures related to the operations of Woodside Senior Communities’
facilities. This federally tax-exempt financing process has enabled Woodside Senior Communities to operate more effectively by financing its capital expenses at a lower interest rate
(initially 3.196%).
7
The Year In Review
$11,554,244
(continued)
ThedaCare
Close Date: August 6, 2014
“Each of our WHEFA deals has involved unique components, but
the reliability of having a responsive, helpful, and professional
WHEFA team has consistently been a pleasure to work with.”
- Keith Taubel, Controller, ThedaCare, Inc.
ThedaCare employs approximately 5,000 full-time equivalents.
ThedaCare is a community health system consisting of seven hospitals, numerous clinics and related services including home care and senior living. The hospitals in the system include
Appleton Medical Center in Appleton, Wisconsin; Theda Clark Medical Center in Neenah, Wisconsin; New London Family Medical Center in New London, Wisconsin; Shawano Medical
Center in Shawano, Wisconsin; Riverside Medical Center in Waupaca, Wisconsin; Community Health Network in Berlin, Wisconsin; and Wild Rose Community Memorial Hospital in Wild
Rose, Wisconsin.
Bond financing facilitated by WHEFA was used to help ThedaCare refinance bonds previously issued by WHEFA in 2004 on behalf of Community Health Network, Inc. (“CHN”) in Berlin,
Wisconsin, in connection with the affiliation of CHN with ThedaCare. The net present value savings following the refinancing of the prior bonds was approximately $4.3 million. This
federally tax-exempt financing process has enabled ThedaCare to operate more effectively by financing its capital expenses at a lower interest rate (initially 1.065%).
$26,772,390
Alverno College
This project will create 25 permanent jobs with an annual payroll
of $1,250,000, as well as 250 construction jobs. 165 jobs
will be retained with an annual payroll of $8,250,000.
Alverno College employs 450 full-time equivalents.
“WHEFA’s assistance and service throughout the process were
invaluable. With their help, we’ll provide the next generation of Alverno
students with the classrooms, collaboration spaces and advanced
learning technologies they need to develop their abilities to the fullest.”
- James Oppermann, Senior Vice President – Finance
and Management Services, Alverno College
Alverno College, a four-year, independent, Catholic liberal arts college for women, was founded by the School Sisters of St. Francis in 1887. Alverno College is located on a 46-acre campus
on the southwest edge of Milwaukee, Wisconsin.
Bond financing facilitated by WHEFA was used to help refinance bonds previously issued by WHEFA in 1997 for Alverno College and finance the acquisition, construction, renovation,
remodeling and equipping of certain of Alverno College’s educational facilities. The project is Alverno College’s largest expansion and renovation in its 126-year history and includes nine
new high-tech classrooms; a state-of-the-art nursing simulation center; an expanded commons that will provide the Alverno community a strong center for students, faculty and staff to
collaborate; a new “Student Main Street” that will combine critical student services in one easy-to-access location; a larger food service area; a coffee shop and private group study rooms.
In addition, the current conference center in the Sister Joel Read Center will be expanded. This federally tax-exempt financing process has enabled Alverno College to operate more
effectively by financing its capital expenses at lower interest rates (initially 0.90%-2.15%).
8
The Year In Review
$51,785,000 (continued)
Rogers Memorial Hospital
“The professionals at WHEFA were an invaluable part of
our financing team, bringing deep insight, strong support
and broad expertise to the transaction. Through WHEFA,
Rogers created a solid capital foundation supporting
increased access to the highest quality behavioral health
care so that the patients, families and communities we
serve can experience hope and healing in their lives.”
Rogers Behavioral Health System employs
approximately 860 full-time equivalents.
- Michael Hedrick, Chief Financial Officer,
Rogers Behavioral Health System
The Brown Deer location project will create
300 permanent jobs with an annual payroll
between $8 million to $12 million.
Rogers Memorial Hospital owns and operates mental health facilities offering child, adolescent, adult care and specialized residential programming, offering treatment programs at five
Wisconsin locations: Oconomowoc, West Allis, Madison, Kenosha and Brown Deer.
Bond financing facilitated by WHEFA will help finance certain capital expenditures of Rogers Memorial Hospital, including the renovation and equipping of an approximate 28-bed obsessive
compulsive disorder residential facility located on the Oconomowoc campus; the acquisition, construction, renovation and equipping of an approximate 56-inpatient unit psychiatric
hospital located in Brown Deer; and the acquisition, construction, renovation and equipping of a building to house day treatment and intensive outpatient programs located adjacent to
the Brown Deer campus. Proceeds of the bond financing were also used to refinance bonds previously issued by WHEFA in 2000 and 2004 on behalf of Roger’s Memorial Hospital and to
refinance other outstanding indebtedness of Rogers Memorial Hospital. This tax-exempt financing process has enabled Rogers Memorial Hospital to operate more effectively by financing
its capital expenses at lower interest rates (2.00%-5.00%).
$35,900,000
Felician Services
The St. Joseph Academy project will create 8 permanent
jobs with an annual payroll of $266,000, as well as 20
construction jobs. All 86 full-time equivalents will be
retained with an annual payroll of $2.7 million.
Close Date: September 2, 2014
“All of us at Felician Services and its Sponsored Ministries
are very grateful for all of the assistance provided by
WHEFA and its staff throughout its recent bond financing
process. In addition, their suggestions on improving the
flexibility for future bond financings will be invaluable
as we look in the future to maintaining and expanding
the high quality services we provide to the communities
we serve, in particular to the poor and underserved.”
- Joe Parrillo, Chief Financial Officer, Felician Services, Inc.
Felician Services employs approximately 275 full-time
equivalents across its ministries in Wisconsin.
Felician Services, Inc., an Illinois non-profit corporation, was incorporated in December 1989 by the Congregation of the Sisters of Saint Felix of Cantalice, Chicago Province. Felician
Services is the parent organization/sole corporate member of 24 sponsored ministries in various states, including Wisconsin, and provides governance and support services to its
sponsored ministries. Felician-sponsored ministries provide high quality long-term care and education services to their communities with special focus on serving low-income populations.
Bond financing facilitated by WHEFA was used to help Felician Services refinance bonds previously issued by WHEFA in 2007 and 2008 on behalf of Felician Village and St. Mary’s Home
for the Aged, located in Manitowoc. Bond proceeds will also help finance the costs of the construction of an approximate 22,500 square foot addition to the existing educational facilities
of St. Joseph Academy in Milwaukee, including adding ten classrooms and a gym. This federally tax-exempt financing process has enabled Felician Services to operate more effectively by
financing its capital expenses at a lower interest rate (initially 2.92%).
9
The Year In Review
$16,049,964
Kirkland Crossings
“Kirkland Crossings and Presbyterian Homes and Services very much appreciates the opportunity to work with
WHEFA to facilitate the tax-exempt financing that closed in September, 2014. Using WHEFA as the conduit to
issue the new bonds was a smooth process that closed quickly. Lowering our cost of capital will enhance our
ability to keep rents affordable and the campus in Pewaukee up to date and marketable for years to come.”
- Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services
(continued)
Close Date: September 4, 2014
Kirkland Crossings employs approximately 48 full-time equivalents.
Kirkland Crossings, Inc., an affiliate of Presbyterian Homes and Services, Inc. (“PHS”), offers senior living, assisted living and memory care on its Pewaukee, Wisconsin campus, which includes
22 independent living townhomes, 60 independent living apartments, and 60 assisted living units with supportive services and memory care with a dedicated staff. PHS, based in St. Paul,
Minnesota, is a non-profit, faith-based organization providing a broad array of high quality housing choices, care and service options for older adults. 5,800 employees serve nearly 24,000
older adults through 40 PHS-affiliated senior living communities in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service division of PHS.
Bond financing facilitated by WHEFA was used to help Kirkland Crossings refinance certain of its outstanding indebtedness which originally financed certain of its senior residential
facilities in Pewaukee, Wisconsin. The net present value savings following the refinancing was approximately $2.3 million. This federally tax-exempt financing process has enabled Kirkland
Crossings to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.88%).
$44,235,000
Dickson Hollow
“Dickson Hollow and Presbyterian Homes and Services very much appreciate the opportunity to again
work with WHEFA to facilitate the tax-exempt financing that closed in October, 2014. Using WHEFA as the
conduit to issue the bonds was a smooth process that closed quickly. Borrowing on a tax-exempt basis
through WHEFA will keep our cost of capital low and help us build a beautiful campus in Menomonee Falls.
It will also enhance our ability to keep rents affordable and the campus marketable for years to come.”
Close Date: October 15, 2014
This project will create 50 permanent jobs with an annual payroll of
$1.5 million, as well as 100 construction jobs. Dickson Hollow
expects to employ 33 full-time equivalents.
PWH Menomonee Falls, Inc. (“PWH”) is an affiliate of Presbyterian Homes and Services, Inc. (“PHS”). PHS, based in St. Paul, Minnesota, is a non-profit, faith-based organization providing a
broad array of high quality housing choices, care and service options for older adults. 5,800 employees serve nearly 24,000 older adults through 40 PHS-affiliated senior living communities
in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service division of PHS.
Bond financing facilitated by WHEFA will help PWH finance the acquisition, construction and equipping of a new comprehensive senior campus in Menomonee Falls, Wisconsin to be
known as Dickson Hollow that will provide residential rental housing and related services to seniors and that will consist of 120 independent living apartments expected to be licensed
as a residential care apartment complex, 42 assisted living units, and 18 memory care units expected to be licensed as a community based residential facility, and a town center. This
tax-exempt financing process has enabled PWH to operate more effectively by financing its capital expenses at lower interest rates (2.75%-5.50%).
10
The Year In Review
$21,200,000
(continued)
This project will create 13 permanent jobs with an annual
payroll of $379,000, as well as 75 construction jobs.
Spooner Health System employs 129 full-time equivalents.
“Securing tax-exempt financing allows us to continue offering many employment
opportunities with great economic impact for our community. We will also be able
to continue providing high quality care and excellent service to our patients.”
- Michael Schafer, Chief Executive Officer, Spooner Health System
146 jobs will be retained with an annual payroll of $7,720,000.
“WHEFA helped us to obtain tax-exempt financing for a replacement
hospital we are building in Spooner. Working with WHEFA has been a
great experience. They offered a vast amount of knowledge and a smooth
process for helping us acquire the financing we needed for our project.”
- Rebecca Busch, Chief Financial Officer, Spooner Health System
Spooner Health System, Inc. has been dedicated to caring for and improving the health of the citizens of Spooner and surrounding communities in northwest Wisconsin since 1955.
Bond financing facilitated by WHEFA will help finance the acquisition, construction and equipping of an approximately 82,500 square foot, 20-bed replacement critical access hospital. The
replacement hospital will be located on an approximately 58-acre parcel of property in Spooner, Wisconsin. Construction started in late September 2014 with an anticipated occupancy
in May 2016. The replacement hospital will provide inpatient and outpatient services similar to those currently offered in the existing facility. This federally tax-exempt financing process
has enabled Spooner Health System to operate more effectively by financing its capital expenses at a lower interest rate (initially 3.65%).
$2,925,000
Cumberland Memorial Hospital and Extended Care Unit
“WHEFA was a valuable part of our financing team. We are grateful
to WHEFA and their helpful staff for working with us on this project
and helping us obtain tax-exempt financing to expand the services
we are able to offer our patients and keep healthcare local.”
- Angie Martens, Chief Financial Officer, Cumberland Healthcare
This project will create 2 permanent jobs with an annual payroll of $110,000.
Cumberland Healthcare employs approximately 180 full-time equivalents.
The Cumberland Memorial Hospital and Extended Care Unit, Inc. (“Cumberland Healthcare”) operates of a 25-bed acute care critical access hospital, a 50-bed skilled nursing home, and a
20-unit elderly housing facility in Cumberland, Wisconsin.
Bond financing facilitated by WHEFA was used to help refinance certain outstanding indebtedness of Cumberland Healthcare and finance the relocation of the hospital’s pharmacy and
other general capital expenditures and equipment acquisitions. This federally tax-exempt financing process has enabled Cumberland Healthcare to operate more effectively by financing
its capital expenses at a lower interest rate (3.03%).
11
The Year In Review
$35,505,000
(continued)
Lawrence University of Wisconsin
Close Date: November 3, 2014
“Lawrence University’s partnership with WHEFA to issue tax-exempt bond financing
ensures that we are able to provide a high quality of housing, invest in our scholar athletes
and be an efficient and responsible energy consumer. Each of these is an important
component of a Lawrence education and the students and families who invest in it.”
- Christopher Lee, Vice President for Finance and Administration, Lawrence University of Wisconsin
This project will create more than 165 construction jobs.
Lawrence University of Wisconsin employs 525 full-time equivalents.
Founded in 1847, Lawrence University of Wisconsin has a current enrollment of 1,500 students from nearly every state and 50 countries outside the U.S. Lawrence University of Wisconsin
is located on an 84-acre campus in the City of Appleton, WI.
Bond financing facilitated by WHEFA was used to help refinance bonds previously issued by WHEFA on behalf of Lawrence University in 2009. Proceeds of the bond financing will also
finance the acquisition, construction, renovation and equipping of certain of its educational and related facilities, including the renovation of an existing residence hall to add additional
student rooms, the renovation of the existing football stadium, certain infrastructure capital improvements at the University’s facilities and other general capital expenditures and
equipment acquisitions. This federally tax-exempt financing process has enabled Lawrence University to operate more effectively by financing its capital expenses at a lower interest rate
(initially 0.98%).
$9,950,000
Divine Savior Healthcare
“Our ability to secure tax-exempt financing was enhanced by the support and expertise
the WHEFA staff brought to our financing team. Accessing the tax-exempt marketplace
has enabled us to continue improving access to quality, high valued services to our
Community, the cornerstone of our strategic plan. As with our previous financing
issues, working with the WHEFA staff on our recent placement has been a pleasure.”
- Marlin “Pete” Nelson, Vice President of Finance, Divine Savior Healthcare, Inc.
This project will create 11 permanent jobs with an annual payroll of $340,500, as well as
100 construction jobs. 107 jobs will be retained with an annual payroll of $8,598,300.
Divine Savior Healthcare employs 701 full-time equivalents.
Incorporated in 1967, Divine Savior Healthcare, Inc. owns and operates an acute care hospital in the City of Portage, Wisconsin with 73 approved beds, 52 of which are staffed. Divine
Savior Healthcare also operates an 83 licensed bed extended care facility which includes an additional 40-bed assisted living unit on the same campus of the hospital. Additionally, Divine
Savior Healthcare owns and operates ambulatory care facilities in the neighboring communities of Pardeeville and Westfield and also operates an industrial medicine clinic, a home health
agency and an ambulance service in Portage.
Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction and equipping of a new medical office building and rehabilitation facility, and
certain remodeling and improvements to Divine Savior Healthcare’s existing hospital facility, including the expansion of the surgery facilities at the hospital. This federally tax-exempt
financing process has enabled Divine Savior Healthcare to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.30%).
12
The Year In Review
$180,000,000
Hospital Sisters Services
“Working with WHEFA on tax-exempt financing has allowed us to effectively coordinate care and
lower our cost of funds, which will ultimately benefit our patients and communities served. WHEFA
was easy and enjoyable to work with and were able to help streamline our financing process.“
- Mike Cottrell, Chief Financial Officer, Hospital Sisters Services, Inc.
(continued)
Hospital Sisters Services employs approximately
3,946 full-time equivalents in Wisconsin.
Hospital Sisters Services, Inc., an Illinois not-for-profit corporation, is the sole member of 13 tax-exempt corporations (referred to collectively as the Hospital Affiliates) that own and operate
acute care hospitals, eight located in Illinois and five located in Wisconsin. The Hospital Affiliates located in Illinois currently are licensed to operate 1,497 acute care beds, and the Hospital
Affiliates located in Wisconsin currently are approved for 1,421 acute care beds. The Wisconsin Hospital Affiliates include St. Joseph’s Hospital in Chippewa Falls; Sacred Heart Hospital in
Eau Claire; St. Mary’s Hospital Medical Center in Green Bay; St. Vincent Hospital in Green Bay; and St. Nicholas Hospital in Sheboygan.
Bond financing facilitated by WHEFA was used to help Hospital Sisters Services refinance bonds previously issued by WHEFA in 2012 on behalf of certain Hospital Affiliates located in
Wisconsin. Proceeds of the bond financing were also used to refinance certain other bonds previously issued in 2012 on behalf of certain Hospital Affiliates located in Illinois. This federally
tax-exempt financing process has enabled Hospital Sisters Services to operate more effectively by refinancing its capital expenses at low interest rates (0.23%-3.35%).
$44,485,000
Woodland Hill Senior Housing
“Woodland Hill and Presbyterian Homes and Services very much appreciates the opportunity to again
work with WHEFA to facilitate the tax-exempt financing that closed in November, 2014. Using WHEFA as
the conduit to issue the bonds was a smooth process that closed quickly. Borrowing on a tax-exempt
basis through WHEFA will keep our cost of capital low and help us build a beautiful campus in Hudson.
It will also enhance our ability to keep rents affordable and the campus marketable for years to come.”
This project will create 50 permanent jobs with an annual payroll of
$1.54 million, as well as 100 construction jobs. Woodland Hill
Senior Housing expects to employ 35 full-time equivalents.
Hudson Senior Housing, LLC (“Hudson Senior Housing”) and its sole member, Presbyterian Homes, Housing and Assisted Living, Inc. are affiliates of Presbyterian Homes and Services
(“PHS”). PHS, based in St. Paul, Minnesota, is a non-profit, faith-based organization providing a broad array of high quality housing choices, care and service options for older adults. 5,800
employees serve nearly 24,000 older adults through 40 PHS-affiliated senior living communities in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service
division of PHS.
Bond financing facilitated by WHEFA will help Hudson Senior Housing finance the acquisition, construction and equipping of a new comprehensive senior campus in Hudson, Wisconsin
to be known as Woodland Hill Senior Housing that will provide residential rental housing and related services to seniors consisting of 95 independent living apartments expected to be
licensed as a residential care apartment complex, 46 assisted living units and 19 memory care units expected to be licensed as a community based residential facility, a dialysis clinic and
a town center. This tax-exempt financing process has enabled Hudson Senior Housing to operate more effectively by financing its capital expenses at lower interest rates (2.00%-5.25%).
13
The Year In Review
$36,065,000
Goodwill Industries of Southeastern Wisconsin
(continued)
“It has been very easy to work with WHEFA in securing tax-exempt financing for Goodwill’s
project investments. Their efforts have provided Goodwill with an opportunity to offer
additional services for individuals with disabilities and disadvantages seeking employment.”
- Tammy Jung, Vice President and Chief Financial Officer,
Goodwill Industries of Southeastern Wisconsin, Inc.
This project will create 25-30 permanent jobs
and approximately 400 jobs will be retained.
Goodwill Industries of Southeastern Wisconsin, Inc. is the largest of more than 165 Goodwill organizations in North America. More than 6,500 Goodwill Industries of Southeastern
Wisconsin employees work in over 90 locations throughout 23 counties in southeastern Wisconsin and metropolitan Chicago. Goodwill Industries of Southeastern Wisconsin has been
providing services since 1919, and last year served over 72,000 individuals with disabilities and disadvantages who were seeking independence through job training and work opportunities.
Bond financing facilitated by WHEFA was used to help refinance bonds for Goodwill Industries of Southeastern Wisconsin previously issued by WHEFA in 2005 and 2009. Proceeds of the
bond financing will also finance the acquisition, construction, renovation, remodeling and equipping of a 154,000-square-foot facility in Greendale, Wisconsin. The new location enables
Goodwill Industries of Southeastern Wisconsin to consolidate programs and services at three buildings into one, and more efficiently fulfill its mission of providing training, employment
and supportive services for people with disabilities and disadvantages who seek greater independence. This federally tax-exempt financing process has enabled Goodwill Industries of
Southeastern Wisconsin to operate more effectively by financing its capital expenses at lower interest rates.
$18,615,000
Vernon Memorial Healthcare
“Tax-exempt financing can be a daunting undertaking for any organization. Healthcare
organizations in Wisconsin are extremely fortunate to have WHEFA to assist with the process, and
it was great to work with them again during our recent re-financing. The staff was professional,
knowledgeable and extremely helpful as we worked through the process. They were always
available and were instrumental in achieving a very positive outcome for our organization.“
- Mary Koenig, Chief Financial Officer, Vernon Memorial Healthcare, Inc.
Close Date: December 9, 2014
Vernon Memorial Healthcare employs approximately
420 full-time equivalents in Wisconsin.
Vernon Memorial Healthcare, Inc., incorporated in 1946, owns and operates a critical access designated acute care hospital located in the City of Viroqua, Wisconsin. Vernon Memorial
Healthcare also owns and operates four physician clinics in La Farge, Soldiers Grove, Westby and Viroqua, Wisconsin.
Bond financing facilitated by WHEFA was used to help Vernon Memorial Healthcare refinance bonds previously issued by WHEFA in 2005. The net present value savings following the
refinancing was approximately $2.58 million. This federally tax-exempt financing process has enabled Vernon Memorial Healthcare to operate more effectively by refinancing its capital
expenses at lower interest rates (4.00%–5.00%).
14
The Year In Review
$13,780,000
Wisconsin Illinois Senior Housing
“We have worked with WHEFA on 7 bond issues since 2006, and find
the relationship to be incredibly beneficial. The staff are wonderful
to work with, and for a smaller not-for-profit like WISH, WHEFA has
provided us with an opportunity to obtain the funds to carry out our
mission of quality care and services for the elderly in mostly rural
Wisconsin locations. We consider them a valuable partner.”
- Robert Siebel, President, Carriage Healthcare Companies, Inc.
as Managers for Wisconsin Illinois Senior Housing, Inc.
(continued)
approximately 35 construction jobs. 94 jobs will be retained with an annual payroll of $2,048,594.
Wisconsin Illinois Senior Housing employs 937 full-time equivalents in Wisconsin.
Wisconsin Illinois Senior Housing, Inc. (“WISH”) currently owns and operates eight skilled nursing facilities with a total of 482 licensed beds. Two of the skilled nursing homes are licensed
for a total of 40 community based residential facility beds in addition to the skilled nursing beds. All of the WISH facilities are located in rural areas of Wisconsin, except for one facility in
a northwestern suburb of Chicago, Illinois.
Bond financing facilitated by WHEFA will be used to help WISH finance costs associated with the renovation, remodeling and equipping of its East Troy Manor facility, including a new
16-bed, one-story, 11,500 square foot addition to its skilled nursing facility. Portions of the addition will be dedicated to short term care rehabilitation and hospice residents. Proceeds of
the bond financing were also used to refinance bonds previously issued by WHEFA in 2006 for the benefit of WISH, the proceeds of which originally financed projects in Elkhorn and Wild
Rose, Wisconsin. The net present value savings following the refinancing was approximately $2.0 million. This federally tax-exempt financing process has enabled WISH to operate more
effectively by financing its capital expenses at a lower interest rate (initially 2.85%).
$32,380,000
The Medical College of Wisconsin
“WHEFA is an important business partner for MCW and other higher education
entities in Wisconsin. The access to tax-exempt debt allows MCW to reduce
its cost of capital and enhance its academic facilities. The WHEFA team is
knowledgeable and they were supportive throughout the refinancing process.”
- Pamela J. Stanick, Controller, Medical College of Wisconsin, Inc.
The Medical College of Wisconsin employs
approximately 5,000 full-time equivalents.
The Medical College of Wisconsin, Inc. is a private, medical college which offers medical and graduate degrees and maintains multi-specialty clinical programs in which faculty physicians
provide medical care. The Medical College of Wisconsin also performs research in numerous basic and clinical sciences. The Medical College of Wisconsin has a current enrollment of
1,208 students. The campus is located on approximately 33 acres on the Milwaukee Regional Medical Center campus in Milwaukee.
Bond financing facilitated by WHEFA was used to help The Medical College of Wisconsin refinance bonds previously issued by WHEFA in 2004 and 2010. The net present value savings
following the refinancing was approximately $4.5 million. This federally tax-exempt financing process has enabled The Medical College of Wisconsin to operate more effectively by
financing its capital expenses at lower interest rates (2.10%-2.36%).
15
The Year In Review
$22,088,000
Marquardt Village
“The tax-exempt financing process was made easier due to the professionalism
and efficiency of Dennis and his team which we greatly appreciate.”
- Matt Mauthe, Chief Executive Officer, Marquardt Village, Inc.
(continued)
67 construction jobs. 75 jobs will be retained with an annual payroll of $2,625,000.
Marquardt Village employs 200 full-time equivalents.
Since 1969, Marquardt Village’s continuing care retirement community has been providing Watertown and the surrounding-area with housing and senior living facilities. Currently
Marquardt Village, along with its affiliated entities, own and operate independent living apartments, assisted living apartments, a skilled nursing facility, as well as rehabilitation, home
health, hospice, supportive home care, and lifeline services to those living in southeastern Wisconsin. Through Marquardt at Home, Marquardt Village also brings home health and hospice
care to individuals living in private homes in the 8-county region surrounding Watertown.
Bond financing facilitated by WHEFA will be used to help Marquardt Village finance costs associated with the construction and equipping of a new 44-unit replacement assisted living
facility, the construction of an approximately 29,000 square foot town center to be used by residents, and certain other renovations, remodeling and improvements to existing facilities.
Proceeds were also used to refinance certain other outstanding debt that financed Marquardt Village’s capital expenditure needs. This federally tax-exempt financing process has enabled
Marquardt Village to operate more effectively by financing its capital expenses at lower interest rates (initially 3.90%).
$204,800,000
ProHealth Care
“We have high praise for the WHEFA team. In addition to providing professional and
knowledgeable guidance on our recent bond financing transaction, the WHEFA team
was very easy to work with. WHEFA is a great business partner and has been an
important contributor to our success. ProHealth Care is lowering our cost of capital
and obtaining funding for important strategic initiatives. We now are able to better
allocate scarce resources that support the activities vital to the mission and vision of
the organization. It would not have been possible without support from WHEFA.”
- Ronald J. Farr, Chief Financial Officer, ProHealth Care, Inc.
These projects will create 193 full-time equivalent permanent jobs with an annual payroll
of $4,700,000, as well as 250 construction jobs. 396 full-time equivalents will work at the
Pewaukee and Mukwonago Campuses with an annual payroll of $32,000,000.
ProHealth Care employs 3,500 full-time equivalents.
ProHealth Care, Inc. is the sole corporate member of Waukesha Memorial Hospital, Inc., Oconomowoc Memorial Hospital, Inc. and National Regency of New Berlin, Inc. Waukesha
Memorial Hospital owns and operates an acute care hospital located on a 23-acre campus in the City of Waukesha with 265 staffed beds. Oconomowoc Memorial Hospital owns and
operates an acute care hospital on an 18.5 acre campus in Oconomowoc with 58 staffed beds. National Regency owns and operates assisted and independent living facilities in Waukesha
County and a medical office building located adjacent to Waukesha Memorial Hospital.
Bond financing facilitated by WHEFA will be used to help ProHealth Care finance costs associated with the construction and equipping by Waukesha Memorial Hospital of a 160,000-squarefoot cancer center and multi-specialty clinic in Pewaukee, and a 66,000-square-foot expansion of an outpatient center in Mukwonago to add emergency services. Proceeds of the bond
financing also were used to refinance bonds issued by WHEFA in 2005 on behalf of National Regency in New Berlin, Wisconsin and bonds issued by WHEFA in 2008 for the benefit of
Waukesha Memorial Hospital and Oconomowoc Memorial Hospital. This federally tax-exempt financing process has enabled ProHealth Care and its affiliates to operate more effectively
by financing their capital expenses at a lower cost.
16
The Year In Review
$17,329,000
Franciscan Sisters of Christian Charity Sponsored Ministries
“Our ability to obtain lower interest cost through tax-exempt financing is ultimately a great
benefit to the people and communities who depend on our services. It enables the Franciscan
Sisters of Christian Charity to carry out and expand their mission, attending to the health
needs of the elderly, especially for those who experience challenges accessing our services.”
- James Vopat, Senior Vice President, Finance,
Franciscan Sisters of Christian Charity Sponsored Ministries, Inc.
(continued)
This project will create 11 permanent jobs with an annual payroll
of $525,000, as well as approximately 60 construction jobs.
25 jobs will be retained with an annual payroll of $870,000.
FSCCSM employs over 1,200 full-time equivalents in Wisconsin.
Franciscan Sisters of Christian Charity Sponsored Ministries, Inc. (“FSCCSM”), is a not-for-profit healthcare and higher education holding company incorporated to monitor and manage the
healthcare and higher education ministry of the Franciscan Sisters of Christian Charity, Manitowoc, Wisconsin. FSCCSM is the sole corporate member of Holy Family Memorial, Inc., and
St. Paul Elder Services, Inc.
Bond financing facilitated by WHEFA will be used to help St. Paul Elder Services in Kaukauna finance costs associated with the construction of a 13-bed addition to and renovations and
improvements to the existing skilled nursing facility and the construction of a new 24-unit community based residential facility. In addition, proceeds of the bond financing will help Holy
Family Memorial in Manitowoc finance the construction and expansion of clinic facilities, and other capital expenditures and equipment acquisitions. Proceeds of the bond financing were
also used to refinance bonds previously issued by WHEFA in 2003 on behalf of Holy Family Memorial and St. Paul Elder Services. This federally tax-exempt financing process has enabled
FSCCSM and its affiliates to operate more effectively by financing their capital expenses at a lower interest rate (initially 1.12%).
$28,195,000
Fort HealthCare
“WHEFA’s assistance in assembling a high quality financing team greatly helps organizations
like Fort HealthCare efficiently access funds necessary to continue our mission and vision.”
- James Nelson, Senior Vice President – Finance and Strategic Development / Chief Financial Officer,
Fort HealthCare, Inc.
Fort HealthCare employs approximately 680 full-time equivalents in Wisconsin.
Fort HealthCare, Inc. presently owns and operates Fort Memorial Hospital, an 82-staffed bed, general acute care hospital located on a 6.5 acre site in Fort Atkinson, Wisconsin. Fort
HealthCare is also the sole shareholder of Fort Medical Group, consisting of 40 physicians.
Bond financing facilitated by WHEFA was used to help Fort HealthCare refinance bonds previously issued by WHEFA in 2004 to finance certain capital expenditures at its hospital facilities.
The net present value savings following the refinancing was approximately $6.76 million. This federally tax-exempt financing process has enabled Fort Healthcare to operate more
effectively by refinancing its capital expenses at lower interest rates (4.00%–5.00%).
17
The Year In Review
$125,670,000
ThedaCare
(continued)
Close Date: January 7, 2015
“Implementing wonderful ideas and technologies that better serve the healthcare customer
consumes critical resources. The financial process with WHEFA was efficiently managed
and delivered a product that can serve our organization and the communities we serve
for many years to come. We feel fortunate to have such a partner here in Wisconsin.”
- Keith Taubel, Controller, ThedaCare, Inc.
The projects will create 18 permanent jobs with an annual payroll of $1,300,000,
as well as 194 construction jobs. ThedaCare employs 4,893 full-time equivalents.
ThedaCare is a community health system consisting of seven hospitals, numerous clinics and related services including home care and senior living. The hospitals in the system include
Appleton Medical Center in Appleton, Wisconsin; Theda Clark Medical Center in Neenah, Wisconsin; New London Family Medical Center in New London, Wisconsin; Shawano Medical
Center in Shawano, Wisconsin; Riverside Medical Center in Waupaca, Wisconsin; Community Health Network in Berlin, Wisconsin; and Wild Rose Community Memorial Hospital in Wild
Rose, Wisconsin.
Bond financing facilitated by WHEFA will help ThedaCare finance the acquisition, construction and equipping of a 127,555 square foot replacement hospital in Shawano, Wisconsin; the
construction and equipping of a new 80,000 square foot cancer center facility in Appleton, Wisconsin; the acquisition, construction and equipping of a replacement clinic facility in Neenah,
Wisconsin; and the construction and remodeling of a hybrid operating room suite in Appleton, Wisconsin. Bond proceeds were also used to refinance bonds previously issued by WHEFA
in 2005 to finance certain capital expenditures of ThedaCare and its affiliates . The net present value savings following the refinancing was approximately $4.7 million. This federally taxexempt financing process has enabled ThedaCare and its affiliates to operate more effectively by financing their capital expenses at lower interest rates (3.00%-5.00%).
$1,457,500
Riverfront Foundation and Riverfront Activity Center
“We were very fortunate to work with a great group of people that helped us
every step of the way. The process was well planned out and well communicated.
WHEFA stayed on top of everything for us and really put our mind at ease that
the process was going as planned. The tax-exempt financing will save our nonprofit thousands of dollars. Dollars we can put back into our programs.”
- Tom Kabat, Financial Director, Riverfront Foundation, Inc. and Riverfront Activity Center, Inc.
Riverfront employs approximately 196 full-time equivalents.
Riverfront Foundation, Inc. (the “Foundation”) and Riverfront Activity Center, Incorporated (the “Center”) (collectively, “Riverfront”), founded in La Crosse, Wisconsin in 1977, help nearly
1,200 people annually with disabilities in order to maximize their independence and full potential. Riverfront is comprised of the Foundation which is a non-profit supporting organization
formed solely for charitable and educational purposes to support the activities and purposes of the Center. The Center provides real life services to people with disabilities in Wisconsin
and the Midwest and focuses primarily on adults and young adults in Wisconsin and Minnesota, helping them live independently, work and earn paychecks and be part of the community
as workers, neighbors and friends.
Bond financing facilitated by WHEFA was used to help Riverfront refinance bonds previously issued by WHEFA in 1998. The net present value savings following the refinancing was
approximately $655,000. This federally tax-exempt financing process has enabled Riverfront to operate more effectively by refinancing its capital expenses at a lower interest rate (3.35%).
18
The Year In Review
$133,630,000
ProHealth Care
(continued)
“WHEFA is a great business partner. The professional and knowledgeable team at WHEFA is an
indispensable member of our financing team. ProHealth Care’s operating cost was significantly
reduced as a result of our recent debt refinancing. We now have an opportunity to better allocate
resources to activities vital to the mission and vision of the organization. It would not have been
possible without support from WHEFA. WHEFA is an important contributor to our success.”
- Ronald J. Farr, Chief Financial Officer, ProHealth Care, Inc.
ProHealth Care employs 3,500 full-time equivalents.
ProHealth Care, Inc. is the sole corporate member of Waukesha Memorial Hospital, Inc., Oconomowoc Memorial Hospital, Inc. and National Regency of New Berlin, Inc. Waukesha
Memorial Hospital owns and operates an acute care hospital located on a 23-acre campus in the City of Waukesha with 265 staffed beds. Oconomowoc Memorial Hospital owns and
operates an acute care hospital on an 18.5 acre campus in Oconomowoc with 58 staffed beds. National Regency owns and operates assisted and independent living facilities in Waukesha
County and a medical office building located adjacent to Waukesha Memorial Hospital.
Bond financing facilitated by WHEFA was used to help ProHealth Care refinance bonds issued by WHEFA in 2009 for the purpose of financing capital expenditures of Waukesha Memorial
Hospital and Oconomowoc Memorial Hospital. The net present value savings following the refinancing was approximately $27.7 million. This federally tax-exempt financing process has
enabled ProHealth Care and its affiliates to operate more effectively by financing their capital expenses at a lower cost (2.75%-5.00%).
$4,985,000
Sixteenth Street Community Health Centers
“As a community health center serving patients regardless of the ability to pay, we operate
on very slim margins. Our ability to access low cost capital through WHEFA frees up funds
to enable us to continue to serve those disadvantaged patients and to develop and maintain
innovational programming to address the social and health needs of the communities we serve.”
- Betsy Spahiu, Vice President Financial Services, Sixteenth Street Community Health Centers, Inc.
Close Date: April 1, 2015
Sixteenth Street Community Health Centers employs
approximately 320 full-time equivalents.
Sixteenth Street Community Health Centers (“SSCHC”) is an innovative, case-managed, and family-based primary health care provider committed to improving the health and well-being
of Milwaukee and surrounding communities. SSCHC has provided quality health care, health education and social services on Milwaukee’s multi-cultural south side since 1969 and is
recognized as a leader in the community in terms of the excellent care provided, as well as advocacy for public health issues. SSCHC’s health services are designed to serve people in the
context of their community, family and culture and free of linguistic and economic barriers. SSCHC is one of 18 community health centers in the state of Wisconsin that are located in
‘medically under-served’ communities. SSCHC has three locations on Milwaukee’s south side and one location in Waukesha.
Bond financing facilitated by WHEFA was used to help SSCHC refinance bonds previously issued by WHEFA in 2006 for the purpose of financing and refinancing certain capital expenditures
of SSCHC. The net present value savings following the refinancing was approximately $824,000. This federally tax-exempt financing process has enabled SSCHC to operate more
effectively by refinancing its capital expenses at a lower cost.
19
The Year In Review
$45,105,000
Bellin Memorial Hospital
(continued)
“Bellin is very appreciative of WHEFA. The ability to secure tax-exempt financing through WHEFA
is vital to our operations and will allow us to reduce our overall borrowing costs which we
believe will translate into lowering the cost of care for our community. Bellin does not issue
debt very often and WHEFA’s experience and expertise is something we relied on to achieve our
savings. WHEFA is an organization that can be counted on to be a true business partner.”
- James Dietsche, Chief Financial Officer, Bellin Health Systems, Inc.
Bellin Memorial Hospital and Bellin Psychiatric Center employ
approximately 2,488 full-time equivalents in Wisconsin.
Bellin Health Systems, Inc. was formed in 1983 to own, operate and support various healthcare providers and institutions, and is the sole member of Bellin Memorial Hospital, Inc., which
owns and operates a 174-staffed bed hospital in Green Bay, Wisconsin; Bellin Psychiatric Center, Inc.; and certain other entities. Today, Bellin Health Systems operates an integrated
healthcare delivery system based in Green Bay, Wisconsin with 37 physician clinics, as well as FastCare retail health clinics serving residents of northeast Wisconsin and the Upper
Peninsula of Michigan.
Bond financing facilitated by WHEFA was used to help Bellin Memorial Hospital refinance bonds previously issued by the Redevelopment Authority of the City of Green Bay in 2008 for
the purpose of financing and refinancing certain capital expenditures of Bellin Memorial Hospital and Bellin Psychiatric Center. The net present value savings following the refinancing
was approximately $4.21 million. This tax-exempt financing process has enabled Bellin Health Systems and its affiliates to operate more effectively by refinancing their capital expenses
at lower interest rates (2.00%-5.00%).
$10,250,000
Carthage College
“For the third time in the last three years, WHEFA’s very knowledgeable staff has successfully
guided Carthage College through the process of a tax-exempt bond issue. The staff’s in-depth
knowledge of tax-exempt financing, along with a positive customer service approach, has been a
tremendous resource for our College as we expand our campus to meet our growing enrollment.”
- William Abt, Senior Vice President for Administration & Business, Carthage College
Carthage College employs approximately 378 full-time equivalents.
Carthage College, founded in 1847, is an Illinois non-profit corporation located in Kenosha, Wisconsin. Carthage College is a private college of the liberal arts and sciences, affiliated with the
Evangelical Lutheran Church in America. Located midway between Chicago and Milwaukee, Carthage’s 80-acre campus on the Lake Michigan shore is home to 2,748 full-time equivalent
students. Carthage College awards the Bachelor of Arts degree with majors in more than 40 subject areas, and the Master of Education degree.
Bond financing facilitated by WHEFA was used to help Carthage College refinance bonds previously issued by WHEFA in 1995 and 1999 for the purpose of financing capital improvements
to the Carthage College campus. This federally tax-exempt financing process has enabled Carthage College to operate more effectively by financing its capital expenses at a low interest
rate (2.46%).
20
The Year In Review
$76,660,000
Aspirus
(continued)
Close Date: May 7, 2015
“WHEFA did a very nice job assisting Aspirus with the bond issue and assuring everything was
managed appropriately and legally. They are extremely accommodating which makes for a very
smooth process. Given thin operating margins and the need to maintain access to healthcare in
the central and northern part of the State, plus, in our case, the Upper Peninsula of Michigan,
tax-exempt financing is very important to our sustainability and growth as a system.”
- Sidney Sczygelski, Chief Financial Officer, Aspirus, Inc.
Aspirus employs 4,800 full-time equivalents in Wisconsin.
Aspirus, Inc. is a regional provider of health care services and its operations include eight acute care hospitals (four in Wisconsin; four in Michigan) with an aggregate 431 available beds,
primary and specialty physician care (including occupational medicine) in more than 30 communities, and 11 facilities offering long-term care and senior living with 195 skilled nursing
beds, 82 assisted living units, ten community-based residential units, 40 independent living units and eight adult family home units.
Bond financing facilitated by WHEFA was used to help Aspirus refinance bonds previously issued by WHEFA in 2008 and 2010 on behalf of Aspirus Riverview Hospital, Inc. located in
Wisconsin Rapids. Bond proceeds will also help Aspirus acquire, construct, renovate, equip and refinance certain hospital and clinic facilities on behalf of certain affiliates located in
Michigan. The net present value savings following the refinancing is approximately $3.3 million. This federally tax-exempt financing process has enabled Aspirus and its affiliates to operate
more effectively by financing their capital expenses at lower interest rates (2.00%-5.00%).
$30,430,000
All Saints Assisted Living Center
“The All Saints journey started about 20 years ago with an idea of providing independent
living options for seniors. We have been careful to set achievable and sustainable
goals. Now, thanks to community partners such as WHEFA, a supportive Board, and
dedicated employees, we can move forward in creating an even greater resource than
originally imagined, one that will serve the West-side of Madison for years to come.”
- Jackson Fonder, President & Chief Executive Officer, Catholic Charities, Inc.
This project will create 50 permanent jobs with an annual payroll of $1,400,000,
as well as approximately 240 construction jobs. 45 jobs will be retained with an
annual payroll of $1,200,000. All Saints Assisted Living Center employs
All Saints Assisted Living Center, Inc. (“All Saints”) currently owns and operates a 58-unit community based residential facility on the west side of Madison. The sole member of All Saints is
Catholic Charities, Inc., Diocese of Madison (“Catholic Charities”). Catholic Charities has served individuals and families in an 11 county area in south central Wisconsin since 1946 and its
mission is to serve the Diocese of Madison by providing compassionate caring services designed to help those in need.
Bond financing facilitated by WHEFA will be used to help All Saints finance costs associated with the construction and equipping of new senior living facilities on the west side of Madison,
including a 48-unit residential care apartment complex and 63 memory-care units. Proceeds of the bond financing will also be used to finance the renovation of its existing facility and to
refinance bonds previously issued by WHEFA in 2007 for the construction and equipping of a community based residential facility. The net present value savings following the refinancing
was approximately $2.2 million. This federally tax-exempt financing process has enabled All Saints to operate more effectively by financing its capital expenses at a lower interest rate
(initially 2.78%).
WHEFA 2015 Annual Report 21
The Year In Review
$138,780,000
Wheaton Franciscan Services
(continued)
“The ability to access tax-exempt financing is vital to our operations. WHEFA is a great
partner that helps simplify the financing process. We truly appreciate all their work.”
- Jon Sohn, Senior Vice President & Chief Financial Officer,
Wheaton Franciscan Services, Inc.
Wheaton Franciscan employs approximately 8,695 full-time equivalents in Wisconsin.
Wheaton Franciscan Services, Inc. is the parent organization for health care and shelter service organizations located in Wisconsin, Illinois, Iowa and Colorado (collectively the “System”).
Today the System is comprised of over 100 sites, including 14 hospitals, three long-term care facilities, two home health agencies, numerous physician clinics, and 2,620 units of assisted
living and other housing for fixed-income, elderly, and low-income families. The System also owns several physician groups including Wheaton Franciscan Medical Group.
Bond financing facilitated by WHEFA was used to help Wheaton Franciscan Services refinance bonds previously issued by WHEFA in 2003 and 2007 to finance and refinance the hospital
and related facilities of certain affiliates of Wheaton Franciscan Services. This federally tax-exempt financing process has enabled the System to operate more effectively by financing its
capital expenses at a lower interest rate (initially 0.83%).
$16,870,000
Edgewood College
“Securing tax-exempt financing through WHEFA allows Edgewood College to
improve the quality of our student’s learning experience while enhancing the
vitality of our community. We are grateful for the partnership with WHEFA and
for the support of their knowledgeable staff throughout the process.”
- Michael Guns, Vice President of Business and Finance & Chief Financial Officer,
Edgewood College
105 construction jobs. Edgewood College employs 467 full-time equivalents.
Edgewood College, Inc. is an educational institution sponsored by the Sinsinawa Dominican Congregation of the Most Holy Rosary offering graduate and undergraduate degrees. Founded
in 1927 on a 55-acre campus in Madison, Wisconsin, Edgewood College has a current undergraduate enrollment of 1,935 students and offers over 40 undergraduate programs.
Bond financing facilitated by WHEFA was used to help Edgewood College refinance bonds previously issued by WHEFA in 2006 for the purpose of financing and refinancing capital
improvements to its educational and student residence facilities. Proceeds of the bond financing will also finance the renovation and remodeling of an existing residence hall facility to
increase capacity by approximately 110 student beds, certain infrastructure capital improvements, and other general capital expenditures and equipment acquisitions, including providing
unique classroom and meeting spaces. This federally tax-exempt financing process has enabled Edgewood College to operate more effectively by financing its capital expenses at a lower
interest rate (initially 1.09%).
22
The Year In Review
$16,480,000
Fort HealthCare
(continued)
Close Date: June 30, 2015
“We are so lucky in Wisconsin to have WHEFA available to achieve tax-exempt financing.
They are the perfect guides for the process and work very hard to help our organization
achieve the lowest cost financing to help us meet our mission and vision.”
- James Nelson, Senior Vice President - Finance and Strategic Development / Chief Financial Officer,
Fort HealthCare, Inc.
Fort HealthCare employs approximately
Fort HealthCare, Inc. presently owns and operates Fort Memorial Hospital, an 82-staffed bed, general acute care hospital located on a 6.5 acre site in Fort Atkinson, Wisconsin. Fort
HealthCare is also the sole shareholder of Fort Medical Group, consisting of 40 physicians.
Bond financing facilitated by WHEFA was used to help Fort HealthCare refinance bonds previously issued by WHEFA in 2007 for the purpose of financing and refinancing capital
improvements to its hospital facilities. This federally tax-exempt financing process has enabled Fort HealthCare to operate more effectively by refinancing its capital expenses at lower
interest rates (initially 2.69%).
WHEFA is proud to have been able to assist these borrowers by reducing their overall debt service and
allowing them to grow and compete by providing access to low-cost capital.
23
Wisconsin Locations of WHEFA Borrowers – Fiscal Year 2015 (07/01/14 – 06/30/15)
29
28
30
24
Wausau
24
20
Eau Claire
22-24
18
20
20
Green Bay
19-20
12
6 & 21
20
27
24-25
La Crosse
26
17
7
Madison
11
14
8-9
15-16
13
9-10
2-8
Milwaukee
9
2
12
24
1
1.
Carthage College (Kenosha)
2.
Wheaton Franciscan Services (Milwaukee, Wauwatosa, Brown Deer, Brookfield, Racine)
3.
Alverno College (Milwaukee)
4.
Sixteenth Street Community Health Centers (Milwaukee)
5.
The Medical College of Wisconsin (Milwaukee)
6.
Felician Services (Manitowoc, Milwaukee)
7.
Goodwill Industries of Southeastern Wisconsin (Greendale, Franklin, Oak Creek, Milwaukee, Wauwatosa, Waukesha, Beaver Dam)
8.
Rogers Memorial Hospital (Oconomowoc, West Allis, Brown Deer)
9.
ProHealth Care (Pewaukee, Mukwonago, New Berlin, Waukesha, Oconomowoc)
10. Kirkland Crossings (Pewaukee)
11. Dickson Hollow (Menomonee Falls)
12. Wisconsin Illinois Senior Housing (East Troy, Elkhorn, Wild Rose)
13. Fort HealthCare (Fort Atkinson)
14. Marquardt Village (Watertown)
15. All Saints Assisted Living Center (Madison)
16. Edgewood College (Madison)
17. Divine Savior Healthcare (Portage)
18. Aspirus (Wisconsin Rapids)
19. Lawrence University of Wisconsin (Appleton)
20. ThedaCare (Berlin, Shawano, Appleton, Neenah, Waupaca, New London, Menasha)
21. Franciscan Sister of Christian Charity Sponsored Ministries (Kaukauna, Manitowoc, Two Rivers)
22. Bellin Memorial Hospital (Green Bay)
23. Woodside Senior Communities (Green Bay)
24. Hospital Sisters Services (Chippewa Falls, Eau Claire, Sheboygan, Green Bay)
25. Sheboygan Senior Community (Sheboygan)
26. Vernon Memorial Healthcare (Viroqua)
27. Riverfront Foundation and Riverfront Activity Center (La Crosse)
28. The Cumberland Memorial Hospital and Extended Care Unit (Cumberland)
29. Spooner Health System (Spooner)
30. Woodland Hill Senior Housing (Hudson)
25
Credit Structure - 2015 Fiscal Year Activity
Number of Issues
Dollars Issued
Rated
Unrated
Total
Fiscal 2015 - #
9
28
37
Fiscal 2015 - $
$637,461,000
$840,956,098
$1,478,417,098
Credit Structure - Total WHEFA Activity
Number of Issues
26
Dollars Issued
Enhanced
Rated
Unrated
Total
Total Activity - #
314
135
341
790
Total Activity - $
$9,957,321,000
$8,202,344,430
$4,006,573,709
$22,166,239,139
Borrower Type - 2015 Fiscal Year Activity
Number of Issues
Dollars Issued
Acute Care
Long-Term Care
Other
Education
Total
Fiscal 2015 - #
16
11
3
7
37
Fiscal 2015 - $
$1,065,349,244
$248,782,964
$42,507,500
$121,777,390
$1,478,417,098
Borrower Type - Total WHEFA Activity
Number of Issues
Dollars Issued
Acute Care
Long-Term Care
Other
Education
Total
Total Activity - #
408
200
65
117
790
Total Activity - $
$17,012,871,979
$2,338,612,467
$882,221,000
$1,932,533,693
$22,166,239,139
27
Use of Bond Proceeds - 2015 Fiscal Year Activity
Number of Issues
Dollars Issued
Refinancing
New Money
Total
Fiscal 2015 - #
26
11
37
Fiscal 2015 - $
$1,032,685,578
$445,731,520
$1,478,417,098
Use of Bond Proceeds - Total WHEFA Activity
Number of Issues
28
Dollars Issued
Refinancing
New Money
Total
Total Activity - #
315
475
790
Total Activity - $
$9,911,550,107
$12,254,689,032
$22,166,239,139
WISCONSIN HEALTH AND
EDUCATIONAL FACILITIES AUTHORITY
FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2015 AND 2014
WISCONSIN HEALTH AND
EDUCATIONAL FACILITIES AUTHORITY
CONTENTS
Page
INDEPENDENT AUDITORS' REPORT ................................................................................... 1 - 3
FINANCIAL STATEMENTS
Statements of Net Position...................................................................................................... 4
Statements of Revenues, Expenses and Changes in Net Position ........................................ 5
Statements of Cash Flows ...................................................................................................... 6
Notes to Financial Statements ........................................................................................ 7 – 27
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Authority’s Proportionate Share of the Net Pension Asset – Wisconsin
Retirement System................................................................................................................ 28
Schedule of Authority Contributions – Wisconsin Retirement System .................................. 29
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS ..................................................................................................... 30 - 31
Schenck
CPAs AND SO MUCH MORE.
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS
To the Members of the Wisconsin Health and
Educational Facilities Authority
Brookfield, Wisconsin
Report on the Financial Statements
We have audited the accompanying financial statements of Wisconsin Health and Educational
Facilities Authority ("the Authority") which comprise the Statements of Net Position as of June 30,
2015 and 2014, and the related Statements of Revenues, Expenses and Changes in Net Position
and Cash Flows for the years then ended and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors consider internal control
relevant to the Authority's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
AGN
""""""""""
Appleton • Fond du Lac • Green Bay • Manitowoc • Milwaukee • Oshkosh • Sheboygan • Wausau
schencksc.com • 800-236-2246
Schenck sc
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Wisconsin Health and Educational Facilities Authority as of June 30, 2015 and
2014, and the changes in its net position and its cash flows for the years then ended in accordance
with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1, the Authority implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions - An Amendment of GASB Statement No. 27. Our opinions are
not modified with respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. Our opinion on the basic financial statements is not
affected by this missing information.
Accounting principles generally accepted in the United States of America require that the schedules
relating to pensions and other post-employment benefits on pages 28 and 29 be presented to
supplement the basic financial statements. Such information, although not part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it
to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October
22, 2015 on our consideration of Wisconsin Health and Educational Facilities Authority’s internal
control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance.
2
That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Wisconsin Health and Educational Facilities Authority's internal
control over financial reporting and compliance.
jJek^^^ aC
Certified Public Accountants
Milwaukee, Wisconsin
October 22, 2015
WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY
STATEMENTS OF NET POSITION
June 30, 2015 and 2014
ASSETS
2015
Current assets
Cash and cash equivalents
Investment securities
Accrued annual fees
Receivables and other assets
$
Total current assets
Other assets
Net pension asset
Property and equipment
Office furniture, equipment and
leasehold improvements
Less: accumulated depreciation
Net property and equipment
Total assets
125,522
2,194,590
254,984
22,348
2014
$
272,207
2,136,963
251,174
24,653
2,597,444
2,684,997
52,053
-
125,116
96,474
123,627
82,227
28,642
41,400
2,678,139
2,726,397
62,507
-
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension
Total assets and deferred outflows of resources
$
2,740,646
$
2,726,397
LIABILITIES
Current liabilities
Accounts payable
Accrued expenses
20,484
55,422
26,787
50,857
Total liabilities
75,906
77,644
28,642
2,636,098
41,400
2,607,353
2,664,740
2,648,753
NET POSITION
Net Investment in capital assets
Unrestricted
Total net position
$
Total liabilities and net position
See accompanying notes to financial statements.
4
2,740,646
$
2,726,397
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Years Ended June 30, 2015 and 2014
2015
Operating revenues
Annual fees
$
Total operating revenue
603,870
2014
$
585,276
603,870
585,276
465,617
67,254
4,956
59,299
18,931
22,581
7,714
17,083
6,629
11,511
4,560
20,200
14,247
12,172
450,036
71,707
6,780
60,164
19,445
18,947
7,606
16,615
3,987
12,525
4,208
30,650
13,223
14,998
732,754
730,891
(128,884)
(145,615)
32,947
(9,047)
7,348
38,797
(6,219)
3,037
31,248
35,615
Change in net position
(97,636)
(110,000)
Cummulative effect of change in accounting principle
113,623
-
2,648,753
2,758,753
Operating expenses
Salaries and benefits
Professional fees
Board expense
Rent
Insurance
Supplies
Telephone
Travel
Membership dues
Hosted seminars
Staff education/training
Sponsorships
Depreciation
Other
Total operating expenses
Operating loss
Nonoperating income (expense)
Interest
Net realized investment loss
Net unrealized investment gain
Total nonoperating income
Net position, beginning of year
Net position, end of year
$
See accompanying notes to financial statements.
5
2,664,740
$
2,648,753
STATEMENTS OF CASH FLOWS
2015
Cash flows from operating activities
Cash received from customers
Cash paid to vendors and employees
$
Net cash used in operating activities
602,365
(721,182)
2014
$
598,709
(694,731)
(118,817)
(96,022)
Cash flows from capital and related financing activities
Purchases of property and equipment
(1,489)
(3,708)
Net cash used in capital and related financing activities
(1,489)
(3,708)
(1,066,777)
1,007,451
32,947
(820,243)
960,961
38,797
Cash flows from investing activities
Purchases of investment securities
Proceeds from sales and maturities of investment securities
Interest received
Net cash (used in) provided by investing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
$
(26,379)
179,515
(146,685)
79,785
272,207
192,422
125,522
$
272,207
Reconciliation of operating loss to net cash
used in operating activities
2015
Operating loss
Adjustments to reconcile operating loss to
net cash used in operating activities:
Depreciation
Net pension asset
Increase (decrease) in operating assets:
Accrued annual fees
Receivables and other assets
(Increase) decrease in operating liabilities:
Accounts payable
Accrued expenses
$
Total adjustments
$
Net cash used in operating activities
See accompanying notes to the financial statements.
6
(128,884)
2014
$ (145,615)
14,247
(937)
13,223
-
(3,810)
2,305
8,743
4,690
(6,303)
4,565
12,514
10,423
10,067
49,593
(118,817)
$
(96,022)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: Wisconsin Health and Educational Facilities Authority (the Authority) is a public body
politic and corporate of the State of Wisconsin created and existing under Chapter 231 of the
Wisconsin Statutes. The Authority consists of seven members (the Members), appointed by the
governor, with the advice and consent of the state senate. The Authority is not considered a
component unit of the State of Wisconsin for purposes of the state's Comprehensive Annual
Financial Report.
The financial statements of the Authority have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP) as applied to government
units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles.
The purpose of the Authority is to facilitate financing for capital expenditures and refinancing of
indebtedness for qualified Wisconsin not-for-profit institutions through the issuance of tax-exempt
debt instruments.
The Authority issues tax-exempt instruments (bonds, notes, or other obligations), which do not
constitute a debt of the State of Wisconsin or any political subdivision. These debt instruments are
limited obligations of the Authority, payable solely from payments made by the related borrowing
institutions and related assets held by trustees. The Authority has no general liability with respect
to these obligations and has no beneficial interest in the related assets held by trustees. Therefore,
the Authority has excluded these obligations, and the related assets held by trustees, from the
financial statements (see Notes 5 and 6).
Cash and cash equivalents: The Authority considers all highly liquid debt instruments purchased
with maturities less than 90 days to be cash equivalents.
Investment securities: Investments in debt securities are carried at fair value, which is determined
based on quoted market prices. Purchases and sales of debt securities are recorded as of the
transaction date. Gains or losses on sales of debt securities are recognized using the specific
identification method.
Office furniture, equipment and leasehold improvements: Office furniture, equipment and
leasehold improvements are carried at cost. Maintenance and repairs are charged to operations as
incurred while renewals and betterments are capitalized. Depreciation is computed using the
straight-line method. The estimated useful lives of office furniture, equipment and leasehold
improvements are three to seven years. Depreciation expense for the years ended June 30, 2015
and 2014 was $14,247 and $13,223, respectively.
Deferred Outflows/Inflows of Resources: In addition to assets, the statement of net position will
sometimes report a separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net position that
applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The Authority has one item that qualifies for reporting in this
category.
7
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
This item is related to the Authority’s proportionate share of the Wisconsin Retirement System
pension plan and is deferred and amortized over the expected remaining service lives of the
pension plan participants.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will not be
recognized as an inflow of resources (revenue) until that time. The Authority currently does not
have any items that qualify for reporting in this category.
Accrued annual fees: The Authority considers accrued annual fees to be fully collectible;
accordingly, no allowance is required. If amounts become uncollectible, they will be charged to
operations when that determination is made.
Operating revenue – annual fees: Revenues consist primarily of annual fees charged to
borrowing institutions. Revenues are recognized when earned. The fee charged to borrowing
institutions for the years ended June 30, 2015 and 2014 was 0.625 of a basis point on the amount
of bonds outstanding at the end of the year.
Income tax status: The Authority is considered a quasi-governmental entity under Chapter 231 of
the Wisconsin statutes and therefore is exempt from federal and state income taxes.
Basis of presentation: Financial transactions of the Authority and the results thereof are
presented in the financial statements as an enterprise fund. Enterprise funds are used to account
for operations (a) that are financed and operated in a manner similar to private business enterprises
- where the intent of the Authority is that the costs (expenses, including depreciation) of providing
services to its users on a continuing basis be financed or recovered primarily through user charges;
or (b) where the governing body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital maintenance, public policy,
management control, accountability or other purposes.
Estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Accordingly, actual results could differ from those
estimates.
8
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net position: Net position is classified and displayed in three components:

Net Investment in capital assets – Amount of capital assets, net of accumulated
depreciation, less outstanding balances of any bonds, mortgages, notes, or other
borrowings that are attributable to the acquisition, construction, or improvement of these
assets.

Restricted net position – Amount of net position that is subject to restrictions that are
imposed by 1) external groups, such as creditors, contributors or laws or regulations or other
governments or 2) law through constitutional provisions or enabling legislation.

Unrestricted net position – Net position that is neither classified as restricted nor as net
investment in capital assets.
The Authority does not have any restricted net position as of June 30, 2015 and 2014.
Pensions: For purposes of measuring the net pension asset, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Wisconsin Retirement System (WRS) and additions to/deductions from
WRS’ fiduciary net position have been determined on the same basis as they are reported by WRS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized
when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Cumulative Effect of Change in Accounting Principle: The Authority has adopted GASB
Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB
Statement No. 27, which revised and established new financial reporting requirements for
governments that provide their employees with pension benefits. The new standard recognizes
pension costs as employment services are provided, rather than when the pensions are funded.
Financial statements for the year ended June 30, 2014, have not been restated. The cumulative
effect of this change was to increase the June 30, 2015 net position of the governmental activities
by $113,623.
NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENT SECURITIES
Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the
following: Time deposits; repurchase agreements; securities issued by federal, state and local
governmental entities; statutorily authorized commercial paper and corporate securities; and the
Wisconsin local government investment pool.
9
NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENT SECURITIES (CONTINUED)
The carrying amount of the Authority’s cash and cash equivalents totaled $125,522 and $272,207
on June 30, 2015 and 2014, respectively. The fair values and cost of investment securities held as
of June 30, 2015 and 2014 are summarized as follows:
June 30, 2015
Cost
U.S. government and
federal agency obligations
Other commercial
asset-backed obligations
Corporate bonds
Municipal agency obligations
Other bonds
Total
$
1,352,985
Fair Value
$
346,414
431,503
72,495
$
2,203,397
1,350,907
Net Unrealized
Gains (Losses)
$
339,945
433,202
70,536
$
2,194,590
(2,078)
(6,469)
1,699
(1,959)
-
$
(8,807)
June 30, 2014
Cost
U.S. government and
Other commercial
Corporate bonds
Other bonds
Total
$
936,173
Fair Value
$
512,470
550,021
117,766
36,686
$
2,153,116
926,144
Net Unrealized
Gains (Losses)
$
506,217
552,763
116,018
35,821
$
2,136,963
(10,029)
(6,253)
2,742
(1,748)
(865)
$
(16,153)
Deposits and investments of the Authority are subject to various risks. Presented below is a
discussion of the specific risks.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, the Authority will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The custodial credit risk for investments is
the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, the
Authority will not be able to recover the value of its investment or collateral securities that are in the
possession of another party. Wisconsin statutes require repurchase agreements to be fully
collateralized by bonds or securities issued or guaranteed by the federal government or its
instrumentalities. The Authority does not have an additional custodial credit risk policy.
10
Deposits with financial institutions within the State of Wisconsin are insured by the Federal Deposit
Insurance Corporation (FDIC) in the amount of $250,000 for time and savings deposits and $250,000
for interest-bearing demand deposits per official custodian per insured depository institution.
Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in
the amount of $250,000 for all time accounts, savings accounts and interest-bearing demand deposit
accounts per official custodian per depository institution. In addition, the Authority’s non-interest
bearing transaction accounts are fully insured through December 31, 2014. As of January 1, 2015
the Authority’s noninterest-bearing accounts are combined with its interest-bearing demand deposits
for FDIC insurance coverage. Also, the State of Wisconsin has a State Guarantee Fund which
provides a maximum of $400,000 per public depository above the amount provided by an agency of
the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in
relation to the Fund's total coverage, total recovery of insured losses may not be available.
As of June 30, 2015 and 2014, the Authority had no deposits with financial institutions in excess of
federal depository insurance limits.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Wisconsin statutes limit the purchase of investments in securities to
the top two ratings assigned by nationally recognized statistical rating organizations. Presented
below is the actual rating as of year end for each investment type. The Authority does not have an
additional credit risk policy.
June 30, 2015
Amount
AAA
Investment Type
U.S. government and
Other commercial
Corporate bonds
$ 1,350,907
$ 1,350,907
339,945
433,202
70,536
223,639
29,954
-
$
$
926,144
506,217
552,763
116,018
35,821
11
$
926,144
398,558
29,923
116,018
-
A
-
$
-
116,306
403,248
70,536
June 30, 2014
Amount
AAA
Investment Type
U.S. government and
Other commercial
Corporate bonds
Other bonds
Aa
-
Aa
$
A
107,659
522,840
35,821
$
-
Concentration of Credit Risk
The investment policy of the Authority contains no limitations on the amount that can be invested in
any one issuer. There were no investments in any one issuer (other than U.S. Treasury Securities)
that represent 5% or more of the total Authority’s investments held at June 30, 2015 and 2014.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. One of the ways that the Authority manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or
coming close to maturing evenly over time as necessary to provide cash flow and liquidity needed for
operations.
Information about the sensitivity of the fair values of the Authority’s investments to market interest
rate fluctuations is provided by the following table that shows the distribution of the Authority’s
investments by maturity:
June 30, 2015
Investment Type
U.S. government and
Other commercial
Corporate bonds
Remaining Maturity (in Months)
12 Months
13 - 24
25 - 60
More than
or Less
Months
Months
60 Months
Amount
$ 1,350,907 $
339,945
433,202
70,536
- $ 160,469 $ 1,089,738 $ 100,700
45,545
15,000
55,792
212,605
25,536
160,553
175,052
30,000
123,600
-
June 30, 2014
Investment Type
U.S. government and
Other commercial
Corporate bonds
Other bonds
Amount
$
926,144
12 Months
or Less
$
506,217
552,763
116,018
35,821
Remaining Maturity (in Months)
13 - 24
25 - 60
More than
Months
Months
60 Months
2,719
50,771
25,025
35,821
12
$
56,275
$ 713,310
$ 156,559
40,199
132,963
34,997
-
337,592
369,029
55,996
-
125,707
-
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
The Authority’s investments include the following investments that are highly sensitive to interest rate
fluctuations (to a greater degree than already indicated in the information already provided above):
Fair Value at Year End
June 30, 2015
June 30, 2014
Highly Sensitive Investments
Mortgage back securities. These securities are subject to early
payment in a period of declining interest rates. The resultant
reduction in expected total cash flows affects the fair value of
these securities and makes the fair values of these securities
highly sensitive to changes in interest rates.
$
231,255
$
491,181
NOTE 3 - OPERATING LEASE COMMITMENT
The Authority has an agreement to lease its office space through October 31, 2020. The lease
agreement provides for a basic monthly rental payment of $2,587 plus operating costs through
October 31, 2016 increasing by 2% every 12 months until October 31, 2020. Rental expense related
to the office space amounted to $57,211 and $57,868 for the years ended June 30, 2015 and 2014,
respectively.
NOTE 4 - PENSION PLAN
Plan Description: The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS
benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes.
Benefit terms may only be modified by the legislature. The retirement system is administered by
the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all
eligible State of Wisconsin, local government and other public employees. All employees, initially
employed by a participating WRS employer on or after July 1, 2011, and expected to work at least
1200 hours a year (880 hours for teachers and school district educational support employees) and
expected to be employed for at least one year from employee’s date of hire are eligible to
participate in the WRS.
Vesting: For employees beginning participation on or after January 1, 1990, and no longer actively
employed on or after April 24, 1998, creditable service in each of five years is required for eligibility
for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and
prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or
after July 1, 2011, must have five years of creditable service to be vested.
Benefits Provided: Employees who retire at or after age 65 (54 for protective occupation
employees, 62 for elected officials and State executive participants) are entitled to receive an
unreduced retirement benefit. The factors influencing the benefit are: (1) final average earnings, (2)
years of creditable service, and (3) a formula factor.
13
NOTE 4 - PENSION PLAN
Final average earnings is the average of the participant's three highest years' earnings. Creditable
service is the creditable current and prior service expressed in years or decimal equivalents of
partial years for which a participant receives earnings and makes contributions as required. The
formula factor is a standard percentage based on employment category.
Employees may retire at age 55 (50 for protective occupation employees) and receive reduced
benefits. Employees terminating covered employment before becoming eligible for a retirement
benefit may withdraw their contributions and forfeit all rights to any subsequent benefits.
The WRS also provides death and disability benefits for employees.
Post-Retirement Adjustments: The Employee Trust Funds Board may periodically adjust annuity
payments from the retirement system based on annual investment performance in accordance with
s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment
gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the
reserves, as determined by the system’s consulting actuary. Annuity increases are not based on
cost of living or other similar factors. For Core annuities, decreases may be applied only to
previously granted increases. By law, Core annuities cannot be reduced to an amount below the
original, guaranteed amount (the “floor”) set at retirement. The Core and Variable annuity
adjustments granted during recent years are as follows:
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Core Fund Adjustment
2.6%
0.8
3.0
6.6
(2.1)
(1.3)
(1.2)
(7.0)
(9.6)
4.7
Variable Fund
Adjustment
7%
3
10
0
(42)
22
11
(7)
9
25
Contributions: Required contributions are determined by an annual actuarial valuation in
accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is onehalf of the actuarially determined contribution rate for general category employees, including
teachers, and Executives and Elected Officials. Required contributions for protective employees
are the same rate as general employees. Employers are required to contribute the remainder of the
actuarially determined contribution rate.
14
NOTE 4 - PENSION PLAN (CONTINUED)
During the reporting period, the WRS recognized $20,040 in contributions from the Authority.
Contribution rates as of June 30, 2015 are:
Employee Category
Employee Employer
General (including teachers)
6.8%
6.8%
Executives & Elected Officials
7.7%
7.7%
Protective with Social Security
6.8%
9.5%
Protective
without
Social
Security
6.8%
13.1%
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions: At June 30, 2015, the Authority reported an asset of
$52,053 for its proportionate share of the net pension asset. The net pension asset was measured
as of December 31, 2014, and the total pension liability used to calculate the net pension asset was
determined by an actuarial valuation as of December 31, 2013 rolled forward to December 31,
2014. No material changes in assumptions or benefit terms occurred between the actuarial
valuation date and the measurement date. The Authority’s proportion of the net pension asset was
based on the Authority’s share of contributions to the pension plan relative to the contributions of all
participating employers. At December 31, 2014, the Authority’s proportion was .0021%, which was
a decrease of .0001% from its proportion measured as of December 31, 2013.
For the year ended June 30, 2015, the Authority recognized pension expense of $20,712.
At June 30, 2015, the Authority reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Differences between expected and actual experience
Changes in assumptions
Net differences between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
employer contributions and proportionate share
of contributions
Employer contributions subsequent to the
measurement date
Total
15
Deferred Outflows Deferred Inflows of
of Resources
Resources
$
7,546 $
-
$
25,207
-
1,253
-
28,501
62,507
-
$
$28,501 reported as deferred outflows related to pension resulting from the Authority’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension asset in
the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pension will be recognized in pension expense as follows:
Year ended
June 30
2015
2016
2017
2018
2019
Thereafter
Deferred Outflow of
Resources
$
6,675
6,675
6,675
6,675
6,675
631
Deferred Inflows of
Resources
$
-
Actuarial Assumption: The total pension liability in the December 31, 2014, actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Actuarial Valuation Date:
Measurement Date of Net Pension
Liability (Asset)
Actuarial Cost Method:
Asset Valuation Method:
Long-Term Expected Rate of Return:
Discount Rate:
Salary Increases:
Inflation
Seniority/Merit
Mortality:
Post-retirement Adjustments*
*
December 31, 2013
December 31, 2014
Entry Age
Fair Market Value
7.2%
7.2%
3.2%
0.2% - 5.8%
Wisconsin 2012 Mortality Table
2.1%
No post-retirement adjustment is guaranteed. Actual adjustments are based on
recognized investment return, actuarial experience and other factors. 2.1% is the
assumed annual adjustment based on the investment return assumption and the
post-retirement discount rate.
Actuarial assumptions are based upon an experience study conducted in 2012 using experience
from 2009 – 2011. The total pension liability for December 31, 2014 is based upon a roll-forward of
the liability calculated from the December 31, 2013 actuarial valuation.
16
Long-term expected Return on Plan Assets: The long-term expected rate of return on pension
plan investments was determined using a building-block method in which best-estimate ranges of
expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class
are summarized in the following table:
Asset Class
US Equities
International Equities
Fixed Income
Inflation Sensitive
Assets
Real Estate
Private Equity/Debt
Multi-Asset
Cash
Long-Term Real
Rate of Return
5.3%
5.7%
1.7%
Target
Allocation
21%
23%
36%
2.3%
4.2%
6.9%
3.9%
0.9%
20%
7%
7%
6%
-20%
Single Discount rate: A single discount rate of 7.20% was used to measure the total pension
liability. This single discount rate was based on the expected rate of return on pension plan
investments of 7.20% and a long term bond rate of 3.56%. Because of the unique structure of
WRS, the 7.20% expected rate of return implies that a dividend of approximately 2.1% will always
be paid. For purposes of the single discount rate, it was assumed that the dividend would always be
paid. The projection of cash flows used to determine this single discount rate assumed that plan
member contributions will be made at the current contribution rate and that employer contributions
will be made at rates equal to the difference between actuarially determined contribution rates and
the member rate. Based on these assumptions, the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments (including expected
dividends) of current plan members. Therefore, the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
17
Sensitivity of the Authority’s proportionate share of the net pension asset to changes in the
discount rate: The following presents the Authority’s proportionate share of the net pension asset
calculated using the discount rate of 7.20 percent, as well as what the Authority’s proportionate
share of the net pension asset would be if it were calculated using a discount rate that is 1percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current
rate:
1% Decrease to
Discount Rate
(6.2%)
District's proportionate share of
the net pension liability (asset)
$
146,851
Current Discount
Rate (7.2%)
$
(52,053) $
1% Increase to
Discount Rate
(8.2%)
(209,140)
Pension plan fiduciary net position:. Detailed information about the pension plan’s fiduciary net
position is available in separately issued financial statements available at
http://legis.wisconsin.gov/lab/ and reference report number 15-11.
NOTE 5 - ASSETS HELD BY TRUSTEES
Resolutions adopted by the Authority have provided for trust and other agreements that establish
specific funds to account for the proceeds of the various bond and note issues, notes receivable,
debt service payments, payments by the participating health care and educational institutions, and
construction and issuance costs. The investments held in specific funds established by such
agreements are held by trustees and are excluded from the Statements of Net Position of the
operating fund, as described in Note 1.
18
NOTE 6 - REVENUE BONDS
As of June 30, 2015 revenue bonds outstanding were as follows (dollars in thousands):
Revenue Bonds Outstanding
Meriter Hospital, Series 1992A
Marian College Project, Series 1993
Bellin Memorial Hospital, Inc. Obligated Group, Series
1993
Aurora Health Care Obligated Group, Series 1993
The Blood Center of Southeastern Wisconsin, Inc.,
Series 1994A & 1994B
St. Francis Home of Fond du Lac, Wisconsin, Inc.
Project, Series 1997
Wausau Hospital, Inc. Project, Series 1998B
SSM Health Care, Series 1998B
Children’s Hospital of Wisconsin, Inc., Series 1998
The Richland Hospital, Inc. Project, Series 1998A & 1998B
Middleton Glen, Inc. Project, Series 1998
Aurora Health Care, Inc., Series 1999C
University of Wisconsin Medical Foundation, Inc.,
Series 2000
Madison Family Medicine Residency Corporation, Inc.
Franciscan Sisters of Christian Charity Healthcare
Ministry, Inc. Project, Series 2000
Oakwood Village Project, Series 2000B
Wausau Regional Healthcare, Inc. Project, Series 2001
Senior Housing of Middleton, Inc. Project, Series 2001
Sinsinawa Nursing, Inc. Project, Series 2001
Pooled Loan Financing Program-St. Camillus Health
System, Inc., Series 2002E
WHA Capital Access Designated Pool ProgramMeriter Retirement Services, Series 2002
Viterbo College, Inc., Series 2002
Marian College, Series 2003
Mequon Jewish Campus, Inc. Project, Series 2003
Watertown Memorial Hospital, Inc. Project, Series 2003
Oakwood Village, Series 2003
Group Health Cooperative of South Central Wisconsin
Ministry Health Care, Inc., Series 2004
19
Amount
Outstanding
Due
Interest Rate
1998-2022
1994-2022
5.00%-6.30%
(b)
1994-2022
1996-2023
3.00%-5.875%
3.80%-5.50%
15,130
86,295
1995-2023
(c)
4,430
1998-2017
2011-2021
2003-2019
2011-2028
2001-2028
1999-2028
2029
(a)
(a)
(a)
5.00%-5.625%
5.375%-8.00%
4.40%-5.90%
(a)
165
13,345
10,000
4,370
13,935
3,610
50,000
2008-2030
(a)
40,070
2001-2021
(a)
2,315
2001-2015
2003-2030
2007-2031
2002-2030
2003-2026
(b)
(a)
(b)
6.00%(c)
(a)
460
4,105
6,900
3,262
1,565
2003-2022
(a)
990
2003-2025
2003-2022
2004-2022
2006-2028
2004-2023
2004-2028
(a)
(a)
(a)
(b)
(a)
(a)
5,290
1,750
840
17,135
1,980
7,610
2006-2024
2008-2034
(a)
4.00%-5.00%
5,000
106,225
$
6,960
990
Maranatha Baptist Bible College, Inc., Series 2004
Aspirus Wausau Hospital, Inc. Obligated Group, Series
2004
Eastcastle Place, Inc. Project, Series 2004A
Eastcastle Place, Inc. Project, Series 2004B1 & 2004B-2
Oakwood Village, Series 2005
Valley Packaging Industries, Inc., Series 2005
Community Living Alliance, Inc., Series 2005
Goodwill Industries of North Central, Wisconsin, Inc.,
Series 2005
Marshfield Clinic, Series 2006A
Marshfield Clinic, Series 2006B
Divine Savior Healthcare, Inc., Series 2006
Jewish Home & Care Center, Inc., Series 2006
Carroll College, Inc. Project, Series 2006
Reedsburg Area Medical Center, Inc., Series 2006A
Ripon College, Series 2006
Upland Hills Health, Inc., Series 2006A & 2006B
Upland Hills Health, Inc., Series 2006C
Watertown Memorial Hospital, Inc. Project, Series 2006
Wheaton Franciscan Healthcare System, Series 2006A
Ascension Health Senior Credit Group, Series 2006A
Wheaton Franciscan Healthcare System, Series 2006B
St. Clare Terrace, Inc., Series 2006A & 2006B
Indian Community School of Milwaukee, Inc., Series
2007
Franciscan Sisters of Christian Charity
Healthcare Ministry, Inc., Series 2007
Catholic Residential Services, Inc., Series 2007
Benevolent Corporation Cedar Community, Series 2007
Milwaukee Regional Medical Center, Inc., Series 2007
Wellington Homes of Wisconsin, LLC
Project, Series 2007A & 2007B
Community Care, Inc., Series 2007
Marquette University Projects, Series 2007A & 2007B
Bay Area Medical Center, Inc., Series 2008
Essentia Health Obligated Group, Series 2008B-1
St. Norbert College, Inc., Series 2008
Meriter Retirement Services, Inc., Series 2008A,
2008B & 2008C
Luther Hospital, Series 2008
20
Amount
Outstanding
Due
Interest Rate
2007-2026
(a)
2005-2034
2008-2034
2008-2034
2007-2030
2006-2025
2005-2025
(a)
5.25%-6.125%
6.31%-10.00%
(a)
(a)
4.68% (c)
27,200
17,340
3,724
28,510
2,150
1,829
2006-2025
2011-2034
2011-2036
2006-2032
2011-2035
2006-2026
2008-2026
2036
(a)
5.00%-5.375%
(a)
4.00%-5.50%
(a)
4.00%-5.25%
5.65%
(a)
2007-2036
2007-2036
2018-2036
2008-2034
2028-2036
2007-2030
2009-2036
4.00%-5.125%
(a)
(a)
5.00%-5.25%
5.00%
4.00%-5.125%
4.50%-5.75%
7,390
61,130
56,145
22,270
12,750
4,400
9,150
23,165
16,785
9,450
15,000
274,780
118,830
200,150
3,695
2013-2036
(a)
63,000
2008-2033
2008-2028
2008-2037
2007-2017
5.00%
4.25%-5.25%
(a)
3.89%-4.90%
40,335
3,110
25,655
7,175
2009-2037
2008-2032
2008-2032
2010-2038
2029-2030
2014-2038
5.25%-6.75%
(a)
4.00%-5.00%
(a)
5.125%
(a)
12,255
4,140
45,295
33,115
12,975
13,255
2012-2038
2011-2030
(a)
4.00%-5.75%
46,885
77,720
$
7,700
Goodwill Industries of North Central, Wisconsin, Inc.,
Series 2008
Gundersen Lutheran, Series 2008B
AE Nursing Centers, Series 2008
Children's Hospital of Wisconsin, Inc., Series 2008A
Wisconsin Lutheran Child & Family Service, Inc., Series
2008
Children's Hospital of Wisconsin, Inc., Series 2008B
The Medical College of Wisconsin, Inc., Series 2008A
The Medical College of Wisconsin, Inc., Series 2008B
The Village at Manor Park/Trinity Health Services, Inc.
Marquette University, Series 2008B-1 & 2008B-2
Aurora Health Care, Inc., Series 2008A & 2008B
Marquette University, Series 2008B-3
Agnesian HealthCare, Inc., Series 2008
Gundersen Lutheran Administrative Services, Inc.,
ThedaCare, Inc., Series 2009A & 2009B
Catholic Residential Services, Inc., Series 2009
Aurora Health Care, Inc., Series 2009A & 2009B
Agnesian Healthcare, Inc., Series 2009
Saint John's Communities, Inc., Series 2009A, 2009B,
2009C-1 & 2009C-2
Door County Memorial Hospital Project, Series 2009
Froedtert & Community Health, Inc., Obligated Group,
Series 2009C
Cardinal Stritch University, Series 2009
New Glarus Home, Inc. Project, Series 2009
Aurora Health Care, Inc., Series 2010A
Ascension Health Senior Credit Group, Series 2010E
Sheboygan Senior Community Inc., Series 2010
Ministry Health Care, Inc., Series 2010A
Beloit College, Series 2010A
Wisconsin Illinois Senior Housing, Inc. Project, Series
2010
SSM Health Care, Series 2010A
ThedaCare, Inc., Series 2010
Mercy Alliance, Inc., Series 2010A
Lakeland College, Series 2010
21
Amount
Outstanding
Due
Interest Rate
2008-2028
2020-2033
2013-2038
2017-2037
(a)
(b)
7.15%-7.25%
4.50%-5.25%
2010-2033
2017-2037
2009-2035
2024-2033
(a)
4.00%-5.50%
4.00%-5.25%
(a)
2,910
152,300
78,035
67,500
2008-2028
2010-2029
2028-2038
2010-2029
2010-2035
(a)
2.00%-5.00%
(a)
2.00%-5.00%
(a)
19,077
29,825
160,000
20,305
45,480
2016-2033
2011-2038
2015-2039
2010-2027
2009-2016
(b)
3.50%-5.50%
5.75%-7.75%
(c)
4.072% (c)
78,715
101,765
4,000
157,025
1,102
2010-2039
2011-2036
6.60%-7.625%
(a)
39,145
9,614
2010-2039
2011-2034
2010-2034
2009-2029
2011-2039
2029-2033
2010-2020
2011-2023
2012-2039
3.00%-5.25%
3.37% (c)
4.41% (c)
3.51% (c)
2.50%-5.625%
5.00%
4.40%
2.00%-5.00%
3.50%-6.125%
170,845
11,225
3,517
11,862
166,780
167,320
625
42,970
24,360
2011-2033
2011-2034
2010-2027
2011-2026
2011-2028
5.00%-7.00%
2.00%-5.25%
2.50%-5.50%
3.50%-5.50%
(c)
8,400
117,415
19,645
27,640
13,575
$
6,220
61,400
10,945
103,640
Due
Ministry Health Care, Inc., Series 2010B
Viterbo University, Inc., Project, Series 2010
Odd Fellow-Rebekah Home Association, Inc., Series 2010
Reedsburg Area Medical Center, Inc., Series 2010A
Beloit Health System, Inc., Series 2010B
Pius XI High School, Inc., Series 2010
Watertown Regional Medical Center, Inc., Series 2010
Columbus Community Hospital, Inc., Project, Series 2010
Agnesian Healthare, Inc., Series 2010
Aurora Health Care, Inc., Series 2010B
Aurora Health Care, Inc., Series 2010C
St. Camillus Health System, Inc., Series 2010
Goodwill Industries of North Central Wisconsin, Inc.,
Series 2010
Madison Family Medicine Residency Corporation, Inc.,
Series 2000
First Assembly of God of Kenosha, Inc., Series 2010
Silver Lake College of the Holy Family, Inc., Series 2010
ProHealth Care, Inc. Obligated Group, Series 2011
Marquette University, Series 2011A
Oconto Hospital & Medical Center, Inc. Project, Series
2011
Gundersen Lutheran, Series 2011A
Gundersen Lutheran, Series 2011B
Bellin Memorial Hospital, Inc., Series 2011
Agnesian Healthcare, Inc. Series 2011
Aurora Health Care, Inc. Series 2012B-D
Wisconsin Lutheran College, Series 2012
St. Camillus Health System, Inc., Series 2012
Aspirus Wausau Hospital, Inc., Series 2012
Marshfield Clinic, Series 2012A
The Village at Manor Park, Inc. Project, Series 2012
The Monroe Clinic, Inc., Series 2012A
The Monroe Clinic, Inc., Series 2012B
Ministry Health Care, Inc., Series 2012C
Beaver Dam Community Hospitals, Inc., Series 2012A
Beaver Dam Community Hospitals, Inc., Series 2012B
Ascension Health Alliance Senior Credit Group, Series
2012D
22
2014-2035
2011-2020
2010-2030
2012-2028
2012-2036
2010-2035
2011-2035
2012-2021
2011-2040
2011-2020
2013-2026
2010-2040
Interest Rate
Amount
Outstanding
3.50%-5.50% $
3.36%
4.35% (c)
2.50%-6.10%
3.00%-5.125%
3.68% (c)
2.95% (c)
4.01% (c)
3.00%-5.75%
4.00%-5.00%
(a)
3.70% (c)
59,700
5,917
5,117
5,025
28,710
5,671
1,845
4,829
53,510
98,340
103,080
4,189
2011-2030
(a)
10,508
2011-2040
2020-2035
2011-2030
2011-2019
2011-2020
3.68% (c)
(a)
4.08% (c)
2.00%-5.00%
2.00%-5.00%
5,383
2,301
3,938
18,950
15,755
2013-2041
2012-2039
2041
2012-2024
2012-2020
2013-2028
2013-2028
2013-2032
2012-2035
2012-2020
2013-2024
2012-2033
2013-2022
2013-2027
2013-2032
2012-2032
2013-2028
2012-2034
3.85% (c)
1.00%-5.25%
(a)
2.95%
2.78%
2.50%-5.00%
(a)
(a)
(a)
2.22%
2.91%
(a)
2.59%
3.20%
2.50%-5.00%
2.00%-5.00%
3.05% (c)
(a)
12,872
143,880
40,000
10,375
7,154
214,875
143,645
47,915
14,975
22,890
100,965
1,809
11,981
20,136
138,335
43,005
14,300
8,220
2041
5.00%
88,145
Due
Mercy Alliance, Inc., Series 2012
Howard Young Health Care, Inc., Series 2012
Carthage College, Inc., Series 2012
Marshfield Clinic, Series 2012B
Agnesian HealthCare, Inc., Series 2012A
Attic Angel Obligated Group, Series 2012A & 2012B
Attic Angel Obligated Group, Series 2012C
Tomah Memorial Hospital, Inc., Series 2012
2012
Meriter Hospital, Series 2012A
Meriter Hospital, Series 2012C
Southwest Health Center, Inc., Series 2012A
Southwest Health Center, Inc., Series 2012B
Watertown Regional Medical Center, Inc., Series 2012A
Watertown Regional Medical Center, Inc., Series 2012B
Lawrence University of Wisconsin, Series 2012
United Lutheran Program for the Aging, Inc., Series
2012A
United Lutheran Program for the Aging, Inc., Series
2012B
Gundersen Lutheran, Series 2012
Hospital Sisters Services, Inc. Obligated Group, Series
2012B
Stoughton Hospital Association, Series 2012
Hudson Hospital, Inc., Series 2012
Marquette University, Series 2012
Froedtert Health, Inc. Obligated Group, Series 2012A
Maryhill Manor, Inc., Series 2012
Goodwill Industries of North Central Wisconsin, Inc.,
Series 2012
ThedaCare, Inc., Series 2012A
LindenGrove, Inc., Series 2012A
LindenGrove, Inc., Series 2012B
LindenGrove, Inc., Series 2012C
Milwaukee Catholic Home, Inc., Series 2012
Goodwill Industries of Southeastern Wisconsin, Inc.,
Series 2012
Harwood Place, Inc., Series 2012
Carroll University, Inc., Series 2012
23
Interest Rate
Amount
Outstanding
2018-2039
2012-2030
2012-2027
2029
2013-2040
2013-2027
2012-2032
2022-2034
2012-2027
4.375%-5.00% $
2.50%-5.00%
2.08% (c)
2.05% (c)
1.10%-5.00%
4.00%
3.00% (c)
3.029% (c)
3.65%
2015-2042
2012-2024
2013-2037
2012-2027
2012-2034
2013-2042
2013-2037
2014-2023
3.00%-5.875%
2.16% (c)
1.28% (c)
3.50%
2.86% (c)
1.50%-5.00%
2.72% (c)
1.40%-3.50%
13,600
15,275
19,215
15,301
4,949
15,625
11,370
9,455
2012-2028
2.79% (c)
13,460
2012-2022
2013-2044
(a)
2.00%-5.00%
4,675
69,685
2013-2021
2012-2025
2012-2029
2013-2032
2014-2042
2012-2022
2.00%-5.00%
1.92% (c)
3.61%
2.00%-5.00%
3.00%-5.00%
4.25%
62,430
3,608
18,064
82,625
153,180
1,682
2013-2032
2015-2030
2013-2035
2014-2026
2014-2032
2015-2032
(a)
1.95% (c)
1.50%-5.00%
(a)
2.42% (c)
(a)
1,221
49,745
17,015
6,070
7,375
5,300
2014-2037
2013-2028
2013-2021
(a)
2.90% (c)
1.90% (c)
12,625
10,990
3,638
169,475
18,310
9,287
6,250
103,185
11,563
14,071
5,800
6,659
Due
Saint John's Communities, Inc., Series 2012
Sauk-Prairie Memorial Hospital, Inc., Series 2013A
Sauk-Prairie Memorial Hospital, Inc., Series 2013B
Beloit Health System, Inc., Series 2013
Clement Manor, Inc., Series 2013
Agnesian HealthCare, Inc., Series 2013A
Agnesain HealthCare, Inc., Series 2013B
Aspirus, Inc. Obligated Group, Series 2013
Community Memorial Hospital, Incorporated, Series 2013
SASC, Inc. Project, Series 2013
Three Pillars Senior Living Communities, Series 2013
2013A
2013B
Beaver Dam Community Hospitals, Inc. Series 2013
Wheaton Franciscan Services, Inc. Obligated Group,
Series 2013A
Mount Mary University, Inc., Series 2013A & 2013B
Youth Services LLC Project, Series 2013
Colonial View, Ltd., Series 2013
2013
Carthage College, Series 2013
St. Norbert College, Inc., Series 2013
Southwest Health Center, Inc., Series 2013
Froedtert Health, Inc. Obligated Group, Series 2013A &
Series 2013B
Cedar Crest, Inc., Series 2013
Evergreen Retirement Community, Inc. Project, Series
2013
Benevolent Corporation Cedar Community Project,
Series 2013
Reedsburg Area Medical Center, Inc., Series 2014A &
Series 2014B
Bethany Lutheran Homes, Inc. Project, Series 2014
Mile Bluff Medical Center, Inc., Series 2014
Pine Haven Christian Home, Inc., Series 2014A
Pine Haven Christian Home, Inc., Series 2014B
Beloit College, Series 2014
24
Interest Rate
Amount
Outstanding
2.91% (c)
2016-2032
$
2032-2048 5.125%-5.375%
2015-2032
(a)
2014-2029
(a)
3.09% (c)
2013-2030
2017-2024
1.89%
2024-2036
3.65%-5.00%
2013-2043
2.00%-4.25%
2.72% (c)
2013-2033
2014-2038
1.65%-4.90%
2014-2043
2.00%-5.00%
9,580
38,000
29,387
9,838
13,570
5,705
48,265
89,130
8,283
6,740
22,435
2013-2043
2.00%-5.00%
96,540
2018-2043
2013-2034
(b)
.75%-5.25%
413,315
41,520
2014-2023
2.00%
2014-2039
(a)
2030-2035 5.125%-5.250%
4.57% (c)
2013-2038
2013-2033
3.469% (c)
76,680
9,690
115,750
1,579
2,360
2016-2043
2017
2014-2033
2014-2026
2015-2038
4.00%-7.00%
1.66%-1.93%
2.85% (c)
2.95%
3.30% (c)
7,955
20,000
4,085
10,166
7,072
2014-2035
2014-2035
(a)
1.42% (c)
170,630
17,595
2014-2033
3.25% (c)
7,000
2014-2033 1.17%-3.11% (c)
2014-2036
2015-2041
2015-2039
2014-2034
2014-2044
2014-2037
2.56% (c)
3.22% (c)
2.00%-5.75%
3.00% (c)
3.29% (c)
(a)
3,853
14,343
21,400
27,725
10,000
18,660
29,426
UnityPoint Health, Series 2014A
UnityPoint Health, Series 2014B-1 & Series 2014B-2
District Council of Madison, Inc., Society of St. Vincent
de Paul Project, Series 2014
Sheboygan Senior Community, Inc. Project, Series 2014
Woodside Senior Communities Project, Series 2014
ThedaCare, Inc., Series 2014A
Alverno College, Series 2014A
Alverno College, Series 2014B
Rogers Memorial Hospital, Incorporated., Series 2014A &
2014B
Felician Services, Inc., Series 2014
Kirkland Crossings, Inc., Series 2014
Dickson Hollow Project, Series 2014
Spooner Health System, Inc., Series 2014
The Cumberland Memorial Hospital and Extended Care
Unit, Inc., Series 2014
Lawrence University of Wisconsin, Series 2014
Divine Savior Healthcare, Inc. Project, Series 2014
Hospital Sisters Services, Inc. Obligated Group, Series
2014A
Woodland Hill Senior Housing Project, Series 2014
Goodwill Industries of Southeastern Wisconsin, Inc.,
Series 2014A, Series 2014B, Series 2014C and Series
2014D
Vernon Memorial Healthcare, Inc., Series 2014
Wisconsin Illinois Senior Housing, Inc., Series 2014
The Medical College of Wisconsin, Inc., Series 2014A
The Medical College of Wisconsin, Inc., Series 2014B
Marquardt Village Obligated Group, Series 2014A
Marquardt Village Obligated Group, Series 2014B
ProHealth Care, Inc. Obligated Group, Series 2014A &
2014B
Franciscan Sisters of Christian Charity Sponsored
Ministries, Inc., Series 2014A & 2014B
Fort Healthcare, Inc., Series 2014
ThedaCare, Inc., Series 2015
Riverfront Foundation, Inc. & Riverfront Activity Center,
Incorporated, Series 2015
Sixteenth Street Community Health Centers, Inc., Series
2015
25
Amount
Outstanding
Due
Interest Rate
2014-2029
2030-2041
1.00%-5.00%
(a)
2014-2039
2015
2017-2044
2015-2024
2015-2029
2015-2021
2.88% (c)
2.00%
(c)
(a)
(c)
(a)
9,423
11,486
13,000
11,554
13,100
10,607
2015-2044
2015-2024
2014-2034
2017-2049
2015-2039
2.00%-5.00%
(c)
(c)
2.75%-5.50%
(c)
51,785
35,900
15,718
44,235
21,200
2015-2024
2023-2040
2014-2034
3.03%
(a)
(c)
2,800
35,505
9,725
2015-2029
2017-2049
5.00%
2.00%-5.25%
180,000
44,485
2015-2039
2016-2034
2015-2036
2015-2024
2015-2026
2017-2045
2017-2045
(a)
4.00%-5.00%
(c)
2.10%
2.36%
(c)
(a)
35,395
18,615
13,780
18,450
13,930
11,044
11,044
2016-2044
(a)
204,800
2016-2034
2015-2034
2015-2044
(a)
4.00%-5.00%
3.00%-5.00%
17,329
28,195
125,670
2015-2024
2025-2039
3.35%
2.75%-5.00%
1,405
133,630
2015-2032
(a)
$
85,560
85,000
4,946
Bellin Memorial Hospital, Inc., Series 2015
Carthage College, Series 2015
Aspirus, Inc. Obligated Group, Series 2015A
Aspirus, Inc. Obligated Group, Tax-Exempt Loan, Series
2015
All Saints Assisted Living Center, Inc., Series 2015A &
2015B
Wheaton Franciscan Services, Inc. Obligated Group,
Edgewood College, Inc., Series 2015
Fort HealthCare, Inc., Series 2015
Amount
Outstanding
Due
Interest Rate
2015-2031
2020-2029
2015-2045
2.00%-5.00%
(c)
2.00%-5.00%
2022-2039
(c)
33,685
2015-2045
(a)
30,418
2015-2036
2015-2040
2016-2035
(a)
(a)
(c)
138,780
16,870
16,480
Total revenue bonds outstanding
$
$
45,105
10,250
42,975
9,211,546
As of June 30, 2015, the following bond issues had all or a portion of their bonds advance refunded. The
amounts outstanding were as follows (dollars in thousands):
Advance Refunded Bonds
Due
Felician Health Care, Inc., Series 1992B
Villa St. Francis, Inc., Series 1992C
Riverview Hospital Association, Series 2008
Marquette University, Series 2008B-1 & 2008B-2
Marquette University, Series 2008B-3
Meriter Hospital, Inc., Series 2009
The Medical College of Wisconsin, Inc., Series 2010
Riverview Hospital Association, Series 2010
Meriter Hospital, Inc., Series 2011
2004-2022
1996-2022
2007-2017
2009-2018
2015-2019
2015-2019
2009-2019
2012-2019
2011-2022
2011-2021
2012-2021
Interest Rate
Amount
Outstanding
6.25%
$
4.80%-6.25%
3.85%-5.00%
4.00%-5.75%
2.85%-5.00%
3.50%-5.00%
6.00%-6.625%
4.00%-6.00%
2.00%-5.50%
3.00%-5.375%
3.00%-6.00%
2,670
4,665
10,700
25,885
13,685
8,275
126,855
41,175
22,630
17,825
38,800
Total advance refunded bonds outstanding
$
313,165
Total bonds outstanding
$
9,524,711
(a) Adjustable rate determined by remarketing agreement or agent.
(b) Adjustable rate as an applicable percentage of the 13-week T-Bill rate, LIBOR or SIFMA Index; or
as an applicable percentage of non-financial commercial paper rate.
(c) Rate is reset at end of applicable term.
26
NOTE 6 - REVENUE BONDS (CONTINUED)
As of June 30, 2015, there were 244 revenue bond issues outstanding. These bonds mature
at various dates, with mandatory sinking fund requirements due as follows (dollars in
thousands):
Mandatory
Sinking Fund
Requirements
Fiscal Year
Ending June 30,
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Total
$
$
27
285,170
275,670
334,500
473,155
339,398
372,099
344,690
340,791
369,164
383,806
376,890
404,782
412,285
530,375
380,840
397,493
392,005
445,651
400,356
384,241
351,524
272,521
217,965
177,685
136,884
107,527
233,216
88,844
181,065
75,284
10,050
7,595
8,020
6,365
6,805
9,524,711
SCHEDULE OF AUTHORITY'S PROPORTIONATE SHARE OF
THE NET PENSION ASSET
WISCONSIN RETIREMENT SYSTEM
Last 10 Fiscal Years*
2015
Authority's proportion of the net pension asset
Authority's proportionate share of the net pension asset
Authority's covered-employee payroll
Plan fiduciary net position as a percentage of the total
pension asset
$
$
0.002%
52,053
286,280
102.74%
* The amounts presented for each fiscal year were determined as of the calendar
year-end that occurred within the fiscal year. The Authority implemented GASB
Statement No. 68, Accounting and Financial Reporting for Pensions - An
amendment of GASB 27 for the fiscal year ended June 30, 2015. Information for
prior years is not available.
28
SCHEDULE OF AUTHORITY CONTRIBUTIONS
WISCONSIN RETIREMENT SYSTEM
Last 10 Fiscal Years*
2015
Contractually required contributions
Contributions in relation to the contractually required contributions
Contribution deficiency (excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll
$
$
$
$
20,040
(20,040)
286,280
7.00%
* The amounts presented for each fiscal year were determined as of the calendar
year-end that occurred within the fiscal year. The Authority implemented GASB
Statement No. 68, Accounting and Financial Reporting for Pensions - An
amendment of GASB 27 for the fiscal year ended June 30, 2015. Information for
prior years is not available.
29
Schenck
CPAs AND SO MUCH MORE.
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
Independent Auditors' Report
To the Members of the Wisconsin Health and
Educational Facilities Authority
Brookfield, Wisconsin
We have audited in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of
Wisconsin Health and Educational Facilities Authority ("the Authority") as of and for the year ended
June 30, 2015 and the related notes to the financial statements and have issued our report thereon
which included an emphasis of matter paragraph October 22, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion of the effectiveness of the Authority's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the Authority's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during our
audit we did not identify any deficiencies in internal control over financial reporting that we consider
to be material weaknesses. However, material weaknesses may exist that have not been identified.
IHTEKNATIONit
Appleton • Fond du Lac • GreenBay • Manitowoc • Milwaukee • Oshkosh • Sheboygan • Wausau
schencksc.com • 800-236-2246
Schenck sc
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Authority's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Authority's internal control and
on compliance. Accordingly, this communication is not suitable for any other purpose.
^duyv^J^ A-t^
Certified Public Accountants
Milwaukee, Wisconsin
October 22, 2015
31

Fiscal Year 2015

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