2005 ANNUAL - Wisconsin Health and Educational Facilities Authority
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ANNUAL
2005
REPORT
Wisconsin Health
and Educational
Facilities Authority
CONTENTS
Mission and Vision Statements . . . . . . . . . . . . . 1 Independent Auditors’ Report . . . . . . . . . . . . 14
The Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Financial Statements . . . . . . . . . . . . . . . . . . . . 15-27
Authority Members, Staff and Consultants . . . . 2-3 Locations of Authority Borrowers . . . . . . . . . . 28
The Year in Review . . . . . . . . . . . . . . . . . . . . . . . 4-13
MISSION STATEMENT
The Wisconsin Health and Educational Facilities Authority (“the Authority”) actively assists all eligible Wisconsin health
care and educational institutions to obtain and maintain access to the broadest range of low cost, private capital mar-
ket financing possible.
VISION STATEMENT
The Authority will continue to be an organization that prides itself on being an ally to borrowers representing tax-
exempt health and educational organizations. The Authority fulfills its mission by providing prompt and customer-
friendly services and effective two-way communications with borrowers, lenders, government, legislators, the public,
trade associations and financing team participants.
An important part of the Authority’s future “vision” is its role as a “thought leader” – an organization that is knowl-
edgeable and reacts to the changing healthcare and educational needs of Wisconsin’s citizens by researching trends and
issues that affect the industries served and offering innovative approaches to securing the capital to meet those needs.
This includes serving as an educational conduit and clearinghouse for information relevant to borrowers, lenders, gov-
ernment, legislators, the public, trade associations and financing team participants; and, when necessary, serving as an
advocate for legislative change to help ensure that its statutory authority is consistent with contemporary financing
needs (by authorizing new financing models, new uses of borrowed funds and new tax-exempt borrowers).
The Authority’s ability to achieve its vision is dependent upon its commitment to effective Board leadership and oper-
ational excellence. These characteristics are exemplified by strong Board oversight of operations; the use of performance
indicators to ensure that strategic objectives are being met (or exceeded); a Board that is well-informed about the indus-
tries served and that stays abreast of financing needs; and policies that provide for the recruitment and retention of high-
quality, experienced staff to implement the Authority’s programs and services.
THE AUTHORITY
The Authority, created by the Legislature in 1973 (Chapter 231, Wisconsin Statutes), has been providing active capital
financing assistance to Wisconsin health care institutions since 1979. In 1987, the Authority’s charter was expanded to
include the issuance of bonds for the benefit of independent colleges and universities and certain continuing care facil-
ities. In 2004, the Authority’s charter was further expanded to include the issuance of bonds for the benefit of private,
non-profit elementary or secondary educational institutions. Interest cost savings from Authority financings are reflect-
ed in lower costs to the consumer through the rates, fees and tuitions established by the borrowing institutions.
The Authority staff assists health care and educational institutions in analyzing financing alternatives and in structuring
revenue bond issues to meet their needs. This financial advisory service is available to all eligible borrowers even if the
Authority is not the ultimate issuer for the financing. Funds for each project are obtained through the sale of revenue
bonds of the Authority. 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 the Authority to the borrowing institu-
tion or project sponsor. No state or other public funds are used. Additional benefits and economies are gained when
the Authority does system financings, pooled loan programs, or structured financing programs which are utilized by
multiple borrowers. Since 1994, the Authority has offered a reinvestment program through which projects that educate
or improve the capital finance process for its constituents are eligible for grant funds.
1
THE AUTHORITY (CONTINUED)
The Authority’s bonds are payable solely out of loan repayments from the borrowing institution or sponsor. They are
not a debt, liability, or “moral” obligation of the State of Wisconsin or any of its political subdivisions. The Authority
has no taxing power.
The credit supporting any Authority bond issue is the credit of the borrowing institutions involved. The availability of
financing and its terms and conditions depends in each case upon the credit-worthiness of those institutions. In most
cases, interest paid on Authority bonds is exempt from federal income taxation, resulting in materially lower financing
costs to the borrowing institution. Interest on bonds issued by the Authority is not exempt from present Wisconsin
income taxation.
AUTHORITY MEMBERS
John A. Noreika
Chairperson
Mr. Noreika, a resident of Verona, Wisconsin, is the Executive Director of Oakwood Village, Madison. Mr. Noreika
was appointed as a member in 2002. His current term expires June 30, 2009.
Tim Size
Vice-Chairperson
Mr. Size, a resident of Madison, Wisconsin, is the Executive Director of the Rural Wisconsin Health Cooperative,
Sauk City. Mr. Size was appointed as a member in 1988. His current term expires June 30, 2011.
Edward M. Aprahamian
Member
Mr. Aprahamian, a resident of Brookfield, Wisconsin, is the President of Ficht Services, Shorewood. Mr. Aprahamian
was appointed as a member in 1999. His current term expired June 30, 2005 and he was subsequently not
reappointed.
Linda C. Bruce
Member
Ms. Bruce, a resident of Superior, Wisconsin, is the Family Living Educator at the UW Extension, Douglas County.
Ms. Bruce was appointed as a member in 2003. Her current term expires June 30, 2008.
Tonit M. Calaway
Member
Ms. Calaway, a resident of Milwaukee, Wisconsin, is Associate General Counsel – Motor Company Operations at
Harley-Davidson Motor Co., Milwaukee. Ms. Calaway was appointed as a member in 2003. Her current term
expires June 30, 2010.
Paul B. Luber
Member
Mr. Luber, a resident of Whitefish Bay, Wisconsin, is the Chief Executive Officer of The Jor-Mac Company, Grafton.
Mr. Luber was appointed as a member in 1999. His current term expires June 30, 2006.
Paul J. Senty
Member
Mr. Senty, a resident of Verona, Wisconsin, is Corporate Legal Counsel at Park Bank, Madison. Mr. Senty was
appointed as a member in 2000. His current term expires June 30, 2007.
2
AUTHORITY MEMBERS (CONTINUED)
Past Members of the Authority recognized for their distinguished service include:
Daniel Blask Allan Iding Sister Mary Charles Rydzewski
Kitty Brennan Stewart Laird George Schmoller
Paul Brown James McKanna James Sexton
Manuel Carballo Kenneth Merkel Michael Stewart
Robert Durkin Donald Percy Joy Stubblefield
Sister Antona Ebo Robert Pollock
Marshall Erdman Dean Roe
STAFF
Lawrence R. Nines
Executive Director
Mr. Nines has been the Executive Director at the Authority since 1983. He has been a member of the staff for 22
years.
Dennis P. Reilly
Associate Executive Director
Mr. Reilly has been the Associate Executive Director at the Authority since 2003. He began his career with the
Authority in 1996 as the Manager of Operations and Finance. Mr. Reilly has been a member of the staff for nine
years.
Tanya L. Wilson
Operations & Finance Analyst
Ms. Wilson has been the Operations and Finance Analyst at the Authority since 1999. She began her career with the
Authority in 1987 as the Administrative Coordinator. Ms. Wilson has been a member of the staff for 18 years.
Stephanie L. Schirripa
Administrative Assistant
Ms. Schirripa has been the Administrative Assistant at the Authority since 2002. She has been a member of the staff
for three years.
CONSULTANTS
Quarles & Brady LLP
General Counsel
Quarles & Brady has been General Counsel to the Authority since 1979.
Schenck SC
Independent Auditors
Schenck has been Independent Auditors to the Authority since 2001.
3
THE YEAR IN REVIEW
The Authority is pleased to submit its report on activities for the fiscal year 2005 (July 1, 2004 to June 30, 2005). 2005
represents the Authority’s 26th year of providing financing services to Wisconsin’s health care and educational institu-
tions.
Throughout the year, several institutions utilized the Authority’s financial advisory program in which the Authority pro-
vides financial and technical expertise relating to bond financing alternatives.
During fiscal year 2005, 34 bond series totaling $946,105,430 were successfully completed. As of June 30, 2005, the
Authority has cumulatively completed 497 bond issues totaling over $9.99 billion.
FINANCING HIGHLIGHTS FOR THE FISCAL YEAR ENDING JUNE 30, 2005 INCLUDE:
■ $689,386,000 (73%) was for new capital
■ $256,719,430 (27%) was for refinancing
■ 22 bond series for new capital only
■ 8 bond series for both refinancing and new capital
■ 4 bond series for refinancing only
■ 24 bond series totaling $760,340,000 had a variable interest rate
■ 10 bond series totaling $185,765,430 had a fixed interest rate
■ 32 public placements totaling $923,038,430
■ 2 private placements totaling $23,067,000
■ 5 bond series totaling $49,550,000 were issued for the following first time borrowers:
– St. Mary’s School
– Maranatha Baptist Bible College, Inc.
– Cardinal Stritch University
– Bell Tower Residence
– HospiceCare Holdings, Inc.
■ Completed the Authority’s first hospice financing:
– HospiceCare Holdings, Inc.
25 different borrowers benefited from the bond proceeds during fiscal year 2005, including:
■ 7 Long-Term Care Borrowers:
– Lutheran Homes of Oconomowoc, Inc.
– Three Pillars Senior Living Communities
– Eastcastle Place, Inc.
– Oakwood Village
– Bell Tower Residence
– St. Camillus Health Center, Inc.
– National Regency of New Berlin, Inc.
■ 6 Private Schools:
– St. Mary’s School
– Maranatha Baptist Bible College, Inc.
– Cardinal Stritch University
– The Medical College of Wisconsin, Inc.
– Milwaukee Institute of Art & Design, Inc.
– Lakeland College
4
THE YEAR IN REVIEW (CONTINUED)
■ 4 Multi-Site Hospital Systems:
– Ministry Health Care, Inc.
– Agnesian Healthcare, Inc.
– Aspirus Wausau Hospital, Inc.
– Froedtert & Community Health, Inc. Obligated Group
■ 4 Single Site Hospitals:
– Community Health Network, Inc.
– Rogers Memorial Hospital, Inc.
– Beaver Dam Community Hospitals, Inc.
– Vernon Memorial Healthcare, Inc.
■ 4 Other Organizations (i.e. Clinic/Community Provider):
– Group Health Cooperative of South Central Wisconsin
– The Blood Center of Southeastern Wisconsin, Inc.
– Lutheran Social Services of Wisconsin & Upper Michigan, Inc.
– HospiceCare Holdings, Inc.
INDIVIDUAL BOND ISSUES FOR THE FISCAL YEAR ENDING JUNE 30, 2005 INCLUDE:
$2,695,000 – St. Mary’s School
Menomonee Falls – Proceeds will be used to finance certain renovations and improvements to the borrower’s existing
grades K-8 educational facility, including classrooms and related facilities, office space and site work.
$12,000,000 – Group Health Cooperative of South Central Wisconsin
Madison, Fitchburg and DeForest – Proceeds will be used to finance
the construction, furnishing and equipping of a new free standing
medical clinic to be located in Fitchburg. The proceeds will also be
used to finance the remodeling, related construction, equipment
upgrades and replacements at existing clinic facilities located in
Madison and Deforest.
New medical clinic in Fitchburg, part of Group Health
Cooperative of South Central Wisconsin.
$125,000,000 – Ministry Health Care, Inc.
Weston, Stanley, Marshfield, Oshkosh, Rhinelander,
Tomahawk and Stevens Point – Proceeds will be used to finance
the construction and equipping of a new acute care hospital and
clinic facility in Weston. The proceeds will also be used to
finance certain routine capital equipment purchases and miscel-
laneous capital improvement projects for the borrower’s existing
health care facilities.
The new St. Clare Hospital in Weston, part of Ministry
Health Care, Inc..
5
THE YEAR IN REVIEW (CONTINUED)
$10,500,000 – The Blood Center of Southeastern Wisconsin, Inc.
Milwaukee and Wauwatosa – Proceeds will be used to finance
the renovation, expansion and equipping of the borrower’s head-
quarters building, research facilities, parking facilities and blood
donor centers.
The Blood Center of Wisconsin headquarters building,
Milwaukee.
$12,000,000 – Lutheran Homes of
Oconomowoc, Inc.
Oconomowoc – Proceeds will be used to finance the renovation,
remodeling, and equipping of the borrower’s existing continuing
care facilities and the construction and equipping of a new skilled
nursing facility and other related improvements.
Artist rendering of the new Shorehaven facility, part of
Lutheran Homes of Oconomowoc.
$12,000,000 – Maranatha Baptist Bible College, Inc.
Watertown – Proceeds will be used to finance the construction, ren-
ovation and equipping of certain of its educational facilities, includ-
ing the construction and equipping of a new classroom building, a
new food service dining/classroom building, a new dormitory, an
addition to an existing dormitory and a new parking and campus
roadway system, the renovation of the existing dining facility into an
addition to the existing student center, and other campus improve-
ments. Proceeds will also be used to refund certain outstanding tax-
New dining/classroom building at Maranatha Baptist able debt.
Bible College, Watertown.
$10,060,000 – Series A
$ 5,000,000 – Series B
Community Health Network, Inc.
Berlin – Proceeds will be used to finance the acquisition, construction, improvement and
equipping of the borrower’s hospital, nursing home and medical office facilities, includ-
ing the remodeling and expansion of its surgical facilities and physician office space.
Proceeds will also refund certain outstanding debt.
Physician at Community Health
Network Medical Center, Berlin.
6
THE YEAR IN REVIEW (CONTINUED)
$9,835,000 – Cardinal Stritch University
Fox Point – Proceeds will be used to finance the construction, renovation and
equipping of certain of the borrower’s educational facilities, including a building
addition and the purchase of furniture, fixtures and equipment.
Students at Cardinal Stritch University,
Fox Point.
$5,135,000 – Rogers Memorial Hospital, Inc.
Town of Summit and West Allis – Proceeds will be used to
finance the construction, renovation, remodeling and equipping
of certain of the borrower’s healthcare facilities, including the
construction of an addition to its existing hospital facility, the
construction and renovation of a loading dock, receiving area
and elevator and related improvements, as well as the demolition
of its existing day hospital.
Rogers Memorial Hospital, Town of Summit.
$45,975,000 – Series A
$ 10,000,000 – Series B
Beaver Dam Community Hospitals, Inc.
Beaver Dam – Proceeds will be used to finance the construction and equipping of
a 60-staffed bed, acute care replacement hospital facility.
Patient & Doctor at Beaver Dam
Community Hospitals, Beaver Dam.
$11,067,000 – Agnesian Healthcare, Inc.
Fond du Lac – Proceeds will be used to finance the acquisition, installation and implementation of computer equip-
ment and software and related improvements.
$10,450,000 – Lutheran Social Services of Wisconsin & Upper Michigan
Wittenberg, Eau Claire & Other Multiple Locations in Wisconsin – Proceeds were used to refund bonds previously
issued by the Authority in 2002 and to refinance certain outstanding taxable debt, proceeds of which were used by the
borrower to acquire and improve certain of its facilities.
7
THE YEAR IN REVIEW (CONTINUED)
$30,510,000 – Series A
$89,675,000 – Series B
$13,150,000 – Series C (taxable)
The Medical College of Wisconsin, Inc.
Wauwatosa – The Series A & B bond proceeds will be used to construct, ren-
ovate and equip certain educational and health care facilities, including the
construction of a new research facility, construction of a parking garage and
the demolition and renovation of an existing building, and the funding of
ongoing miscellaneous capital projects in the existing facilities of the bor-
rower. Proceeds were also used to refund bonds previously issued by the
Authority in 1993. The Series C bond proceeds were used to refinance acqui-
Artist rendering of the new Medical Research
sition costs related to an office building. Facility, part of The Medical College of
Wisconsin, Wauwatosa.
$45,000,000 – Aspirus Wausau Hospital, Inc.
Wausau and Medford – Proceeds will be used to finance the costs
associated with the construction, renovation, remodeling and equip-
ping of certain of the health care facilities of Aspirus Wausau Hospital
(AWH) and Memorial Health Center (MHC). AWH will construct
and equip a three-story addition to its existing hospital and renovate
and equip other portions of the hospital. MHC will construct and
equip a new clinic building which will be attached to the existing
hospital and renovate and enlarge the space for hospital depart-
ments.
Aspirus Wausau Hospital, Wausau.
$10,285,000 – Milwaukee Institute of Art & Design, Inc.
Milwaukee – Proceeds will be used to partially refund bonds previously issued by the Authority in 2001.
$5,125,000 – Series A
$ 7,500,000 – Series B
Three Pillars Senior Living Communities
Dousman – Proceeds will be used to finance the construction, renova-
tion, remodeling and equipping of certain of the borrower’s health care
facilities, including the construction and equipping of a continuing care
facility consisting of approximately 75 one and two-bedroom units and
New Compass Point Catered Senior Living
renovations to and equipping of the borrower’s existing senior residential Apartments, part of Three Pillars Senior Living
facility. Communities, Dousman.
$19,990,000 – Series A
$ 6,000,000 – Series B
$14,000,000 – Series C
Eastcastle Place, Inc.
Milwaukee – Proceeds will be used to finance a major reconfiguration of the borrower’s existing senior living facility
through a multi-staged demolition, renovation and construction project.
8THE YEAR IN REVIEW (CONTINUED)
$6,720,000 – Bell Tower Residence
Merrill – Proceeds will be used to finance the construction and equipping of
new residential units and related dining, laundry and other improvements
and renovations and equipping of its existing facilities, together with related
improvements and capital expenditures.
Bell Tower Residence, Merrill.
$8,200,000 – St. Camillus Health Center, Inc.
Wauwatosa – Proceeds will be used to finance the construction of an addition to, remodel-
ing and renovation of, and certain capital improvements to, its existing skilled nursing facil-
ity.
Residents of St. Camillus
Health Center, Wauwatosa.
$36,555,000 – Oakwood Village
Madison – Proceeds will be used to finance the construction and equipping of an approximately 124-unit continuing
care apartment facility, including an underground parking facility, as well as various improvements to the borrower’s
existing facilities.
$14,050,000 – Lakeland College
Sheboygan – Proceeds will be used to finance the construction, renova-
tion and equipping of the borrower’s educational facilities, including the
construction, improvement and equipping of the borrower’s science cen-
ter, athletic facility, residence hall and other infrastructure. Proceeds will
also refund bonds previously issued by the Authority in 2000.
Students from Lakeland College, Sheboygan.
$29,990,000 – National Regency of New Berlin, Inc.
New Berlin, Muskego and Brookfield – Proceeds will be used to
refund bonds previously issued by the Authority in 1995. Proceeds
will also finance the construction, renovation and equipping of cer-
tain of the borrower’s health care facilities, including the construction
and equipping of an additional 45 continuing care units at the New
Berlin facility and improvements to certain common areas and 4
existing continuing care units.
Regency Senior Communities in New Berlin, part of
National Regency of New Berlin.
9THE YEAR IN REVIEW (CONTINUED)
$23,000,000 – Vernon Memorial Healthcare, Inc.
Viroqua – Proceeds will be used to finance the construction, renova-
tion and equipping of certain of the borrower’s health care facilities,
including the construction and equipping of expanded surgical facil-
ities and administrative space within the borrower’s hospital facility
and new clinic, administrative and shelled expansion space in a unit
of a medical building condominium which will be connected to the
borrower’s hospital facility.
Surgical Room at Vernon Memorial Healthcare,
Viroqua.
$18,300,000 – HospiceCare Holdings, Inc.
Madison – Proceeds will be used to finance the construction, reno-
vation, and equipping of the borrower’s health care facilities, includ-
ing the construction and equipping of an addition to the borrower’s
existing acute care facility, the remodeling and renovation of, and
other capital improvements to, the borrower’s existing acute care
facility, together with certain equipment and furniture acquisitions
by the borrower. HospiceCare, Madison.
$ 22,818,430 – Series A
$ 185,395,000 – Series B & C
$ 78,125,000 – Series D
Froedtert & Community Health, Inc. Obligated Group
Wauwatosa and Menomonee Falls – Proceeds will be used to
finance the acquisition,
construction, and equip-
ping of the various hospi-
tal, clinic and related
facilities of Froedtert
Memorial Lutheran
Hospital (FMLH) and Medical Doctor in the Cancer Center of Froedtert
Community Memorial Memorial Lutheran Hospital, Wauwatosa.
Hospital (CMH), includ-
ing a new cancer center facility, and construction of a replacement parking
facility at FMLH and the remodeling of the emergency department at FMLH
and CMH. Proceeds were also used to refund or partially refund bonds pre-
viously issued by the Authority in 1994, 1999 and 2001.
Emergency Department at Community
Memorial Hospital in Menomonee Falls.
10■ ■ ■ ■ ■ ■
CREDIT STRUCTURE
NUMBER OF ISSUES DOLLARS ISSUED
2005 FISCAL YEAR ACTIVITY
Unrated (10%)
Unrated (15%)
Rated (6%)
Rated (12%)
Enhanced (73%)
Enhanced (84%)
Enhanced
________ Rated
_____ Unrated
_______ Total
____
Fiscal 2005 – # 25 4 5 34
Fiscal 2005 – $ $791,570,000 $61,443,430 $93,092,000 $946,105,430
■ ■ ■ ■ ■ ■
CREDIT STRUCTURE
NUMBER OF ISSUES DOLLARS ISSUED
TOTAL WHEFA ACTIVITY
Unrated (13%)
Unrated (39%)
Enhanced (48%)
Rated (21%)
Enhanced (66%)
Rated (13%)
Enhanced
________ Rated
_____ Unrated
_______ Total
____
Total Activity – # 240 63 194 497
Total Activity – $ $6,656,761,000 $2,053,848,430 $1,280,569,750 $9,991,179,180
11■ ■ ■ ■ ■ ■
BORROWER TYPE
NUMBER OF ISSUES DOLLARS ISSUED
2005 FISCAL YEAR ACTIVITY
Education (19%)
Education (24%)
Acute Health
Care (35%)
Other Health
Care (21%)
Acute Health
Care (60%)
Other Health
Care (41%)
Acute Other
Health Care
__________ Health Care
__________ Education
_________ Total
____
Fiscal 2005 – # 12 14 8 34
Fiscal 2005 – $ $566,575,430 $197,330,000 $182,200,000 $946,105,430
■ ■ ■ ■ ■ ■
BORROWER TYPE
NUMBER OF ISSUES DOLLARS ISSUED
TOTAL WHEFA ACTIVITY
Education (14%) Education (8%)
Other Health
Care (18%)
Acute Health
Care (51%)
Other Health
Care (35%)
Acute Health
Care (74%)
Acute Other
Health Care
__________ Health Care
__________ Education
_________ Total
____
Total Activity – # 254 171 72 497
Total Activity – $ $7,402,760,730 $1,753,096,000 $835,323,053 $9,991,179,783
12■ ■ ■ ■ ■ ■
USE OF BOND PROCEEDS
NUMBER OF ISSUES DOLLARS ISSUED
2005 FISCAL YEAR ACTIVITY
Refinancing (26%) Refinancing (27%)
New Money (74%) New Money (73%)
New Money
__________ Refinancing
___________ Total
_____
Fiscal 2005 – # 25 9 34
Fiscal 2005 – $ $689,386,000 $256,719,430 $946,105,430
■ ■ ■ ■ ■ ■
USE OF BOND PROCEEDS
NUMBER OF ISSUES DOLLARS ISSUED
TOTAL WHEFA ACTIVITY
Refinancing (32%)
Refinancing (30%)
New Money (68%) New Money (70%)
New Money
__________ Refinancing
___________ Total
_____
Total Activity – # 337 160 497
Total Activity – $ $7,022,733,283 $2,968,445,897 $9,991,179,180
13INDEPENDENT AUDITORS’ REPORT To the Members of the Wisconsin Health and Educational Facilities Authority Brookfield, Wisconsin We have audited the accompanying financial statements of the Wisconsin Health and Educational Facilities Authority (the “Authority”) as of and for the years ended June 30, 2005 and 2004, as listed in the table of contents. These finan- cial statements are the responsibility of the Authority’s management. 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 assur- ance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2005 and 2004, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. The Authority has not presented “Management Discussion and Analysis” that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. In accordance with Government Auditing Standards, we have also issued our report dated August 9, 2005 on our consid- eration of the Wisconsin Health and Educational Facilities Authority’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Certified Public Accountants Milwaukee, Wisconsin August 9, 2005 14
BALANCE SHEETS
June 30, 2005 and 2004
2005
__________ 2004
__________
ASSETS
CURRENT ASSETS
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 146,676 $ 204,417
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,062,738 3,143,658
Accrued annual fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,090 168,856
Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,308
__________ 51,827
__________
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,433,812
__________ 3,568,758
__________
PROPERTY AND EQUIPMENT
Office furniture, equipment and leasehold improvement . . . . . . . . . . . . . 132,262 133,454
Less: accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,728 67,935
NET PROPERTY AND EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,534
__________ 65,519
__________
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,486,346
__________ $3,634,277
__________
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,469 $ 20,651
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,362
__________ 52,500
__________
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,831
__________ 73,151
__________
FUND EQUITY
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,421,515
__________ 3,561,126
__________
TOTAL LIABILITIES AND FUND EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,486,346
__________ $3,634,277
__________
See accompanying notes.
15STATEMENTS OF REVENUES, STATEMENTS OF CASH FLOWS
EXPENSES AND CHANGES IN Years Ended June 30, 2005 and 2004
RETAINED EARNINGS
Years Ended June 30, 2005 and 2004
2005
________ 2004
________
CASH FLOWS FROM
2005 2004 OPERATING ACTIVITIES
________ ________
Operating loss . . . . . . . . . . $(139,611) $(432,236)
REVENUES
Adjustments to reconcile
Annual fees . . . . . . . . . . . __________
$ 372,236 __________
$ 192,873
change in net assets to
Total operating revenue __________ 372,236 __________
192,873 net cash provided by
INVESTMENT INCOME operating activities:
Interest . . . . . . . . . . . . . . . 135,099 161,265 Depreciation . . . . . . . . . . 17,942 17,441
Net realized investment Net realized investment
gain (loss) . . . . . . . . . . . 8,989 (28,505) (gain) loss . . . . . . . . . . (8,989) 28,505
Net unrealized Net unrealized
investment loss . . . . . . . 27,767 161,485
investment loss . . . . . . . __________(27,767) __________
(161,485)
Decrease in operating assets:
Total investment
Accrued annual fees . . . . (10,234) 120,529
income (loss) . . . . . . . __________
116,321 __________
(28,725)
Receivables and other assets 6,519 8,481
TOTAL REVENUES . . . . __________
488,557 __________
164,148 Increase (decrease) in
GENERAL AND ADMINISTRATIVE operating liabilities:
EXPENSES Accounts payable . . . . . . (10,182) 1,938
Salaries and benefits . . . . 397,539 368,765 Accrued expenses . . . . . . _________
1,862 _________
(5,529)
Professional fees . . . . . . . . 48,594 62,019 Net cash used in
Board expense . . . . . . . . . 11,244 10,646 operating activities . . . . . . . _________
(114,926) _________
(99,386)
Rent . . . . . . . . . . . . . . . . 41,335 41,229 CASH FLOWS FROM
Insurance . . . . . . . . . . . . . 18,830 19,702 INVESTING ACTIVITIES
Supplies . . . . . . . . . . . . . . 29,152 21,438 Purchases of investment
Telephone . . . . . . . . . . . . . 8,394 6,851 securities . . . . . . . . . . . . . (1,506,832) (774,360)
Travel . . . . . . . . . . . . . . . . 8,288 8,774 Proceeds from sales and
Membership dues . . . . . . . 2,250 2,790 maturities of investment
Hosted seminars . . . . . . . 10,973 6,472 securities . . . . . . . . . . . . . 1,568,974 935,232
Staff education/training . . 3,662 2,973 Purchases of property
and equipment . . . . . . . . _________ (4,957) (27,804)
_________
Reinvestment initiatives/
financial forecasts . . . . . 12,900 13,900 NET CASH PROVIDED BY
INVESTING ACTIVITIES . . . . . . . _________
57,185 133,068
_________
Depreciation . . . . . . . . . . 17,942 17,441
Other . . . . . . . . . . . . . . . . __________
17,065 __________
13,384 NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS . . . . . _________
(57,741) 33,682
_________
TOTAL EXPENSES . . . . . __________
628,168 __________
596,384
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR . . . . . . . . _________
204,417 170,735
_________
NET LOSS . . . . . . . . . . . . . . . . (139,611) (432,236)
CASH AND CASH EQUIVALENTS,
END OF YEAR . . . . . . . . . . . . . $ 146,676 $_________
204,417
_________
RETAINED EARNINGS,
BEGINNING OF YEAR . . . . . . . __________
3,561,126 3,993,362
__________
RETAINED EARNINGS,
END OF YEAR . . . . . . . . . . . . $3,421,515 __________
__________ $3,561,126
See accompanying notes.
16NOTES 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 cor-
porate of the State of Wisconsin created and existing under Chapter 231 of the Wisconsin Statutes. The Authority con-
sists 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 accept-
ed 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 qual-
ified Wisconsin health care and educational 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 state-
ments (see Notes 5 and 6).
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 mar-
ket 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,
2005 and 2004 was $17,942 and $17,441 respectively.
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.
Revenues: 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, 2005 and 2004 was 0.625 of a basis point
on the average amount of bonds outstanding during 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.
17NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Basis of Presentation: Financial transactions of the Authority and the results thereof are presented in the financial state-
ments 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, includ-
ing 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.
Concentration of Credit Risk: The Authority maintains bank account balances, which, at times, may exceed federally
insured limits. The Authority has not experienced any losses with this account. Management believes the Authority is
not exposed to any significant credit risk on cash.
NOTE 2 – INVESTMENT SECURITIES
The fair values and cost of investment securities held as of June 30, 2005 and 2004 are summarized as follows:
June 30, 2005
________________________________________
Net
Unrealized
Cost
____ Fair Value
_________ Gains (Losses)
_____________
U.S. government and federal agency obligations . . . . . . . . $2,223,921 $2,227,612 $ 3,691
Mortgage-backed obligations . . . . . . . . . . . . . . . . . . . . . . . 57,389 54,948 (2,441)
Other asset-backed obligations . . . . . . . . . . . . . . . . . . . . . 776,808
___________ 780,178
___________ 3,370
________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,058,118
___________ $3,062,738
___________ $ 4,620
________
June 30, 2004
________________________________________
Net
Unrealized
Cost
____ Fair Value
_________ Gains (Losses)
_____________
U.S. government and federal agency obligations . . . . . . . . $2,710,289 $2,731,882 $21,593
Mortgage-backed obligations . . . . . . . . . . . . . . . . . . . . . . . 102,033 100,427 (1,606)
Other asset-backed obligations . . . . . . . . . . . . . . . . . . . . . 299,848
___________ 311,349
___________ 11,501
________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,112,170
___________ $3,143,658
___________ $31,488
________
Mortgage-backed obligations are generally backed by governmental agencies, including the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association and the Government National Mortgage Association.
NOTE 3 – OPERATING LEASE COMMITMENT
The Authority has an agreement to lease its office space through June 30, 2006. The lease agreement provides for a basic
monthly rental payment plus operating costs of $2,054 through June 30, 2006. Rental expense related to the office
space amounted to $39,667 and $39,561 for the years ended June 30, 2005 and 2004, respectively.
18NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4 – RETIREMENT PLAN
All eligible Authority employees participate in the Wisconsin Retirement System (the “System”), a cost-sharing, multi-
ple-employer, public employee retirement system. As a creation under state statutes, the Authority’s participation in the
System is combined with all state departments and agencies. The Authority contributed $33,627 and $30,124 to the
plan for the years ended June 30, 2005 and 2004, respectively.
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 spe-
cific funds established by such agreements are held by trustees and are excluded from the balance sheet of the operat-
ing fund, as described in Note 1.
NOTE 6 – REVENUE BONDS
As of June 30, 2005, the following bond issues had all or a portion of their bonds advance refunded. The amounts out-
standing were as follows (Dollars in Thousands):
Amount
Advance Refunded Bonds Due Interest Rate Outstanding
Waukesha Memorial Hospital, Inc., Series 1990A & B . . . . . . . . . . . . . 2005-2019 7.125%-7.25% $ 3,250
Marquette University Project, Series 1992 . . . . . . . . . . . . . . . . . . . . . . . 2005-2011 5.50% 40
Felician Health Care, Inc., Series 1992B . . . . . . . . . . . . . . . . . . . . . . . . 2006-2022 6.25% 4,970
Memorial Hospital of Iowa County, Inc., Series 1993 . . . . . . . . . . . . . . 2006-2008 5.70%-5.90% 1,305
Mequon Care Center, Inc. Refinancing, Series 1993 . . . . . . . . . . . . . . . 2005-2016 5.40%-5.75% 2,360
Catholic Health Corporation, Series 1995A . . . . . . . . . . . . . . . . . . . . . 2005-2005 5.50% 545
National Regency of New Berlin, Inc. Project, Series 1995 . . . . . . . . . . 2005-2025 7.50%-8.00% 25,450
Memorial Hospital at Oconomowoc, Inc. Project, Series 1997 . . . . . . . 2005-2017 5.40%-6.35% 4,865
Charity Obligated Group - Daughters of Charity National
Health System, Series 1997D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2015 4.90% 14,805
FH Healthcare Development, Inc. Project, Series 1999 . . . . . . . . . . . . . 2005-2028 5.625%-6.25% 41,320
Milwaukee Institute of Art & Design, Inc., Series 2001 . . . . . . . . . . . . . 2005-2022 6.70% (c) 9,683
Froedtert & Community Health Obligated Group, Series 2001 . . . . . . 2005-2030 5.00%-5.65% 103,755
_________
Total advance refunded bonds outstanding . . . . . . . . . . . . . . . . . . . . . . $212,348
_________
As of June 30, 2005, revenue bonds outstanding were as follows (Dollars in Thousands):
Amount
Revenue Bonds Outstanding Due Interest Rate Outstanding
The Board of Trustees of Carroll College Project, Series 1987 . . . . . . . . 2005-2007 (b) $ 2,596
St. Joseph Residence, Inc. Project, Series 1987 . . . . . . . . . . . . . . . . . . . 2005-2007 (b) 570
St. Luke’s Medical Center Project, Series 1987 . . . . . . . . . . . . . . . . . . . . 2005-2017 (a) 30,100
Alexian Village of Milwaukee, Inc. Refinancing, Series 1988A . . . . . . . 2006-2017 (a) 12,400
Marian College of Fond du Lac, Wisconsin, Inc. Project, Series 1988 . . 2005-2009 (b) 520
Viterbo College, Inc., Series 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2008 (b) 250
The Board of Trustees of Beloit College Project, Series 1988 . . . . . . . . 2005-2013 (b) 850
Milwaukee Regional Medical Center, Inc. Project, Series 1988 . . . . . . . 2006-2018 (b) 1,365
Lawrence University Project, Series 1989 . . . . . . . . . . . . . . . . . . . . . . . . 2005-2019 (a) 5,465
United Lutheran Program for the Aging, Inc. Project, Series 1989 . . . . 2006-2019 (a) 5,775
The Medical College of Wisconsin, Inc. Project, Series 1990B . . . . . . . 2005-2015 (b) 8,655
The Board of Trustees of Beloit College, Series 1990 . . . . . . . . . . . . . . . 2006-2010 (b) 650
19NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Amount
Revenue Bonds Outstanding Due Interest Rate Outstanding
Marshfield Clinic Project, Series 1990B . . . . . . . . . . . . . . . . . . . . . . . . . 2010 (a) $ 8,000
Carthage College Project, Series 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2011 (b) 1,400
Holy Family Memorial Medical Center, Inc. Project, Series 1991 . . . . . 2005-2011 (b) 1,190
Viterbo College, Inc. Project, Series 1992 . . . . . . . . . . . . . . . . . . . . . . . 2005-2012 (b) 200
SSM Health Care Obligated Group, Series 1992AA . . . . . . . . . . . . . . . . 2008-2012 6.40%-6.50% 13,290
Villa St. Francis, Inc., Series 1992C . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2022 6.25% 8,680
Meriter Hospital, Series 1992A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 6.00% -6.30% 26,375
Wheaton Franciscan Services, Series 1993 . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 5.75%-6.10% 70,650
Sisters of the Sorrowful Mother – Ministry Corporation, Series 1993 . . 2008-2022 6.125% 30,395
Prospect Congregate Housing, Inc. Project, Series 1993 . . . . . . . . . . . . 2015-2023 (a) 3,000
Novus Health Group, Inc., Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2008 5.40%-5.50% 4,715
Ripon College, Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2008 (b) 2,170
LindenGrove, Inc. Project, Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 5.50%(c) 2,353
National Regency of New Berlin, Inc. Project, Series 1993 . . . . . . . . . . 2005-2022 6.85%-7.85% 9,285
The Board of Trustees of Beloit College Project, Series 1993 . . . . . . . . 2005-2013 (b) 4,484
Children’s Hospital of Wisconsin Inc., Series 1993 . . . . . . . . . . . . . . . . 2005-2010 5.40%-5.50%(d) 7,400
Marian College Project, Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 (b) 1,870
Bellin Memorial Hospital, Inc. Obligated Group, Series 1993 . . . . . . . 2006-2022 5.50%-6.625% 26,152
Howard Young Medical Center, Inc. Project, Series 1993 . . . . . . . . . . . 2005-2013 5.50%-5.75% 4,255
Edgewood Care Center, Inc. Refunding, Series 1993 . . . . . . . . . . . . . . . 2005-2013 7.125% 1,340
Beloit Memorial Hospital, Incorporated, Series 1993 . . . . . . . . . . . . . . 2005-2013 5.70%-6.00% 2,605
Aurora Health Care Obligated Group, Series 1993 . . . . . . . . . . . . . . . . 2005-2023 5.10%-5.40% 118,505
Sisters of the Sorrowful Mother – Ministry Corporation,
Series 1993C & 1993D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2023 4.90%-5.50% 61,380
Janesville Area Visiting Nurses Association, Inc. Project, Series 1994 . . 2005-2009 (b) 6,200
The Blood Center of Southeastern Wisconsin, Inc.,
Series 1994A & 1994B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2022 5.75%(a)(c) 13,025
Ripon College Project, Series 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2009 (b) 1,058
United Lutheran Program for the Aging, Inc., Series 1994 . . . . . . . . . . 2005-2009 (b) 1,692
Sinai Samaritan Medical Center, Inc., Series 1994A . . . . . . . . . . . . . . . 2005-2019 (a) 20,340
Felician Health Care, Inc. Project, Series 1994 . . . . . . . . . . . . . . . . . . . 2006-2019 (a) 12,400
Carthage College Project, Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2015 (b) 4,000
Madison United Hospital Laundry, Ltd. Project, Series 1995 . . . . . . . . 2006-2010 (a) 1,215
Memorial Hospital of Taylor County, Inc. Project, Series 1995 . . . . . . . 2006-2010 (b) 1,585
St. Norbert College, Inc. Project, Series 1995 . . . . . . . . . . . . . . . . . . . . 2006-2010 (b) 900
SSM Health Care Projects, Series 1995A . . . . . . . . . . . . . . . . . . . . . . . . 2006-2020 5.375%-5.875% 16,235
Sheboygan Retirement Home & Beach
Health Care Center, Inc. Project, Series 1995 . . . . . . . . . . . . . . . . . . . 2006-2020 (b) 1,410
Franciscan Skemp Medical Center, Inc., Series 1995 . . . . . . . . . . . . . . . 2005-2020 5.40%-6.25% 22,880
St. Anne’s Home and St. Mary’s Nursing Home Project, Series 1995 . . 2005 5.75% 220
Mercy Health System Corporation, Series 1995 . . . . . . . . . . . . . . . . . . 2005-2017 6.00%-6.25% 26,610
Lutheran Home for the Aging, Inc. Project, Series 1995 . . . . . . . . . . . . 2005-2025 6.20%-7.00% 10,495
Waukesha Memorial Hospital, Inc., Series 1995A . . . . . . . . . . . . . . . . . 2005-2019 5.00%-5.50% 36,950
Hess Memorial Hospital Association, Inc. Project, Series 1995 . . . . . . 2005-2022 7.20%-7.875% 10,460
Franciscan Sisters of Christian Charity
Healthcare Ministry, Inc., Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2014 5.25%-5.50% 15,095
Aurora Medical Group, Inc. Project, Series 1996 . . . . . . . . . . . . . . . . . . 2005-2025 5.20%-6.00% 126,820
Lutheran Homes of Oconomowoc, Series 1996 . . . . . . . . . . . . . . . . . . 2005-2016 2.90%(c) 3,590
Malachi Corporation Project, Series 1996A & 1996B . . . . . . . . . . . . . . 2005-2026 8.00%-10.75% 2,890
20NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Amount
Revenue Bonds Outstanding Due Interest Rate Outstanding
Milwaukee Catholic Home, Inc. Project, Series 1996 . . . . . . . . . . . . . . 2005-2026 6.40%-7.50% $ 15,960
Columbus Community Hospital, Inc., Series 1996 . . . . . . . . . . . . . . . . 2005-2016 6.40%-7.10% 3,575
Congregational Home, Inc. Project, Series 1996 . . . . . . . . . . . . . . . . . . 2005-2011 (a) 2,430
Gundersen Clinic, Ltd. and Lutheran Hospital –
LaCrosse, Inc., Series 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2025 5.40%-5.85% 18,440
Sinai Samaritan Medical Center, Inc. Project, Series 1996 . . . . . . . . . . 2005-2026 5.20%-5.875% 48,270
Malachi Corporation – Manitowoc Project, Series 1996A & B . . . . . . . 2005-2026 8.00%-11.00% 5,465
The Medical College of Wisconsin, Inc. Project, Series 1996 . . . . . . . . 2005-2026 4.85%-5.50% 23,175
Meriter Hospital, Inc., Series 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2026 5.35%-6.00% 30,715
Wheaton Franciscan Services, Inc. System, Variable Rate
Demand Revenue Bonds, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2016 (a) 100,000
American Baptist Homes of the Midwest – Tudor Oaks, Series 1997 . . 2005-2016 6.20%-6.75% 7,160
United Health Group, Inc., Series 1997A & 1997B . . . . . . . . . . . . . . . . 2005-2020 5.00%-5.75% 40,145
Malachi Corporation - Gillett and Wautoma Project,
Series 1997A & 1997B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 8.00%-10.75% 4,380
Viterbo College, Inc. Project, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . 2006-2017 5.75%-6.00% 2,155
Sisters of the Sorrowful Mother – Ministry Corporation,
Series 1997A & 1997B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2026 4.90%-5.90% 67,885
The Medical College of Wisconsin, Inc. Project, Series 1997 . . . . . . . . 2006-2027 5.15%-5.75% 11,185
Residential Services Management, Inc., Series 1997A & 1997B . . . . . . . 2006-2022 6.35%-7.00% 3,440
Marshfield Clinic, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2027 5.10%-5.75% 68,535
Froedtert Memorial Lutheran Hospital Trust, Series 1997 . . . . . . . . . . . 2006-2027 (a) 18,955
Benchmark Healthcare of Green Bay, Inc. Project,
Series 1997A & 1997B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 7.75% 4,620
St. Francis Home of Fond du Lac, Wisconsin, Inc. Project, Series 1997 2006-2017 (a) 8,155
16th Street Community Health Center, Inc. Project, Series 1997 . . . . . 2005-2012 (a) 1,345
Reedsburg Area Medical Center, Inc. Project, Series 1997B . . . . . . . . . . 2008-2017 6.50%-6.75% 3,710
Odd Fellow-Rebekah Home Association, Inc. Project, Series 1997 . . . . 2005-2008 3.76%(c) 1,654
RFDF, Inc. Project, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 6.20%-7.375% 5,410
Aurora Health Care, Inc., Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 5.50%-6.00% 212,350
Edgewood College Project, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2017 (a) 6,230
Grant Regional Health Center, Inc. Project, Series 1997 . . . . . . . . . . . . 2005-2022 6.50%-7.50% 5,585
Alverno College Project, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2017 (a) 8,600
Felician Services, Inc. Obligated Group, Series 1997A & 1997B . . . . . . 2006-2027 (a) 40,300
LindenGrove, Inc., Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 5.40%-6.15% 6,090
Cedar Crest, Inc. Project, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 (a) 7,115
Saint John’s Home & Sunrise Care Center, Inc.
Obligated Group, Series 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2022 5.10%-5.625% 11,990
Wausau Hospital, Inc. Project, Series 1998A . . . . . . . . . . . . . . . . . . . . . 2005-2020 5.00%-5.50% 48,725
Wausau Hospital, Inc. Project, Series 1998B . . . . . . . . . . . . . . . . . . . . . 2005-2013 (e) 20,000
Carroll College, Inc. Project, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . 2005-2009 4.70%-5.00% 5,020
Franciscan Sisters of Christian Charity
HealthCare Ministry, Inc., Series 1998A . . . . . . . . . . . . . . . . . . . . . . . 2006-2028 5.00%-5.50% 13,260
Concordia University Wisconsin, Inc. Project, Series 1998 . . . . . . . . . . 2005-2018 4.60%-5.125% 4,570
SSM Health Care, Series 1998B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2019 (a) 33,500
Children’s Hospital of Wisconsin, Inc., Series 1998 . . . . . . . . . . . . . . . 2011-2028 5.50%-5.625% 70,000
United Health Group, Inc., Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 4.60%-5.25% 28,855
The Millennium Housing Foundation, Inc. Project,
Series 1998A & 1998B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2028 5.75%-6.10% 10,055
21NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Amount
Revenue Bonds Outstanding Due Interest Rate Outstanding
Agnesian Healthcare, Inc., Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2027 4.50%-5.125% $ 26,630
The Richland Hospital, Inc. Project, Series 1998A & 1998B . . . . . . . . 2006-2028 5.375%-7.20% 19,430
St. Camillus Health Center, Inc., Series 1998 . . . . . . . . . . . . . . . . . . . . 2024-2028 5.75% 3,500
United Lutheran Program for the Aging, Inc., Series 1998 . . . . . . . . . . 2006-2028 5.15%-5.70% 16,595
Beaver Dam Community Hospitals, Inc., Series 1998 . . . . . . . . . . . . . . 2005-2028 5.10%-5.80% 12,730
Lawrence University of Wisconsin, Series 1998 . . . . . . . . . . . . . . . . . . . 2005-2028 4.35%-5.125% 16,990
Hospital Sisters Services, Inc. – Obligated Group, Series 1998B . . . . . . 2006-2018 4.30%-5.375% 22,860
Clement Manor Refunding, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . 2005-2024 5.10%-5.75% 18,635
Middleton Glen, Inc. Project, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . 2005-2028 5.30%-5.90% 4,820
The Howard Young Medical Center, Inc. Project, Series 1998 . . . . . . . . 2005-2028 4.25%-5.125% 18,225
Milwaukee Regional Medical Center, Inc. Project, Series 1998A . . . . . . 2005-2021 4.85%-5.75% 2,800
Marquette University, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2028 4.05%-5.50% 75,430
Shady Lane, Inc. Project, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2023 (a) 7,300
Attic Angel Obligated Group, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . 2005-2028 5.10%-6.00% 20,220
McCormick Memorial Home for the Aged, Inc. Project, Series 1998 . . 2005-2028 4.80%-5.875% 2,385
Community Rehabilitation Providers Facilities
Acquisition Program, Series 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2023 6.125%-6.875% 4,145
Benchmark Healthcare of Dane County, Inc. Project, Series 1998 . . . . 2005-2028 6.75%-8.25% 3,565
Stoughton Hospital Association Project, Series 1999 . . . . . . . . . . . . . . 2006-2014 5.15%-5.75% 3,425
The Monroe Clinic, Inc., Series 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2022 4.45%-5.375% 23,755
Milwaukee School of Engineering Project, Series 1999C . . . . . . . . . . . 2005-2017 4.20%-5.125% 1,845
Divine Savior Hospital and Nursing Home, Inc. Project, Series 1999 . . 2006-2028 4.80%-5.70% 11,410
Aurora Health Care, Inc., Series 1999A . . . . . . . . . . . . . . . . . . . . . . . . . 2012-2029 5.375%-5.60% 150,000
Carthage College Project, Series 1999A, 1999B, 1999C & 1999D . . . . 2010-2029 4.85%-5.95%(c) 25,000
ProHealth Care, Inc. Obligated Group, Series 1999 . . . . . . . . . . . . . . . 2005-2028 4.30%-5.125% 41,820
Benedictine Health System – St. Mary’s Duluth Clinic
Health System Obligated Group, Series 1999B . . . . . . . . . . . . . . . . . . 2006-2029 5.00%-5.125% 19,705
Memorial Hospital of Taylor County, Series 1999 . . . . . . . . . . . . . . . . . 2005-2019 (b) 3,150
Kenosha Hospital and Medical Center, Inc. Project, Series 1999 . . . . . 2006-2029 5.00%-5.70% 31,720
Aurora Health Care, Inc., Series 1999B . . . . . . . . . . . . . . . . . . . . . . . . . 2012-2029 5.50%-5.625% 50,000
Aurora Health Care, Inc., Series 1999C . . . . . . . . . . . . . . . . . . . . . . . . . 2029 (a) 50,000
The Board of Trustees of Beloit College Project, Series 1999 . . . . . . . . 2005-2019 (b) 5,000
Grace Lutheran Foundation, Inc. Project, Series 1999 . . . . . . . . . . . . . . 2007-2014 (a) 2,555
Mercy Health System Corporation, Series 1999 . . . . . . . . . . . . . . . . . . 2005-2025 4.60%-5.50% 38,695
Wisconsin Illinois Senior Housing, Inc. Project, Series 1999 . . . . . . . . 2005-2029 7.00% 12,630
Meriter Retirement Services, Inc. Project, Series 1999 . . . . . . . . . . . . . . 2005-2019 (b) 1,700
Maryhill Manor, Inc. Project, Series 1999 . . . . . . . . . . . . . . . . . . . . . . . 2005-2029 5.50%-6.75% 2,280
Ministry Health Care, Inc., Series 1999A & B . . . . . . . . . . . . . . . . . . . . 2005-2029 (a) 100,750
Marshfield Clinic, Series 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012-2029 6.25% 52,095
Mental Health Center of Dane County, Inc. Project, Series 1999 . . . . . 2005-2014 (b) 2,247
St. Norbert College, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2010 (b) 3,420
St. John’s United Church of Christ of Monroe,
Wisconsin Project, Series 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2030 (a) 1,075
Wausau Hospital, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 (e) 23,000
St. Clare Terrace, Inc. Project, Series 2000 . . . . . . . . . . . . . . . . . . . . . . . 2006-2010 6.45%-7.00% 4,135
Rogers Memorial Hospital, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . . 2006-2019 (a) 9,160
University of Wisconsin Medical Foundation, Inc., Series 2000 . . . . . . 2006-2030 (a) 46,600
Madison Family Medicine Residency
Corporation, Inc. Project, Series 2000 . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2021 (a) 4,830
22NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Amount
Revenue Bonds Outstanding Due Interest Rate Outstanding
Grace Lutheran Foundation, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . 2006-2025 (a) $ 2,410
Memorial Hospital of Iowa County, Inc., Series 2000 . . . . . . . . . . . . . . 2006-2030 5.25%-6.20% 13,960
Elder Care of Dane County, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . 2005-2020 (b) 1,200
Franciscan Sisters of Christian Charity
Healthcare Ministry, Inc. Project, Series 2000 . . . . . . . . . . . . . . . . . . . 2005-2015 (b) 4,010
Black River Memorial Hospital, Inc., Series 2000 . . . . . . . . . . . . . . . . . 2005 5.506% 40
United Lutheran Program for the Aging, Inc., Series 2000 . . . . . . . . . . 2005-2020 (b) 800
Oakwood Village Project, Series 2000A . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2030 6.30%-7.625% 11,525
Oakwood Village Project, Series 2000B . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2030 (a) 5,575
Gundersen Lutheran, Series 2000A . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2015 (a) 36,815
Lawrence University of Wisconsin Project, Series 2000 . . . . . . . . . . . . . 2006-2030 (a) 16,160
Abode Corporation Project, Series 2000 . . . . . . . . . . . . . . . . . . . . . . . . 2005-2020 (a) 2,905
Gundersen Lutheran, Series 2000B . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016-2029 (a) 40,470
Bay Area Medical Center, Inc., Series 2000 . . . . . . . . . . . . . . . . . . . . . . 2005-2006 6.12% 516
Eagle River Memorial Hospital Incorporated Project, Series 2000 . . . . 2005-2030 5.15%-5.875% 11,105
Aurora Receivables SPE LLC, Series 2000 . . . . . . . . . . . . . . . . . . . . . . . 2026 (e) 105,000
Wausau Regional Healthcare, Inc. Project, Series 2001 . . . . . . . . . . . . . 2007-2031 (b) 8,000
Riverview Hospital Association, Series 2001 . . . . . . . . . . . . . . . . . . . . . 2005-2030 (a) 21,105
Senior Housing of Middleton, Inc. Project, Series 2001 . . . . . . . . . . . . 2005-2030 6.50% (c) 4,228
ProHealth Care, Inc. Obligated Group, Series 2001A . . . . . . . . . . . . . . 2005-2029 4.00%-5.25% 15,215
ProHealth Care, Inc. Obligated Group, Series 2001B . . . . . . . . . . . . . . 2011-2030 (a) 52,940
Sinsinawa Nursing, Inc. Project, Series 2001 . . . . . . . . . . . . . . . . . . . . . 2006-2026 (a) 2,415
Valley Packaging Industries, Inc. Project, Series 2001 . . . . . . . . . . . . . . 2006-2021 (a) 2,040
Jewish Family Services, Inc. Project, Series 2001 . . . . . . . . . . . . . . . . . . 2005-2016 (b) 975
Watertown Memorial Hospital, Inc., Series 2001 . . . . . . . . . . . . . . . . . 2005-2029 4.10%-5.50% 12,840
Agnesian Health Care, Inc., Series 2001 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2030 5.00%-6.00% 33,870
ThedaCare, Inc., Series 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2030 3.50%-5.00% 49,555
Wisconsin Lutheran College Project, Series 2001 . . . . . . . . . . . . . . . . . 2031 (a) 28,000
St. Joseph’s Community Hospital of
West Bend, Inc. Project, Series 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2021 (a) 19,635
Northland College Project, Series 2001 . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2011 (a) 4,910
Marshfield Clinic, Series 2001A & 2001B . . . . . . . . . . . . . . . . . . . . . . . 2006-2031 4.50%-6.50% 50,820
Pooled Loan Financing Program – Fort Atkinson
Memorial Health Services, Inc., Series 2001B . . . . . . . . . . . . . . . . . . . 2011 (a) 9,500
Carroll College, Inc. Project, Series 2001 . . . . . . . . . . . . . . . . . . . . . . . . 2010-2021 6.125%-6.25% 4,690
Newcastle Place Project, Series 2001A . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2031 5.45%-7.00% 23,085
Newcastle Place Project, Series 2001B . . . . . . . . . . . . . . . . . . . . . . . . . . 2010-2031 (a) 14,500
Pooled Loan Financing Program – University
of Wisconsin Medical Foundation, Inc., Series 2002C . . . . . . . . . . . . 2006-2017 (a) 1,800
Pooled Loan Financing Program – Group Health Cooperative
of South Central Wisconsin, Series 2002D . . . . . . . . . . . . . . . . . . . . . 2006-2008 (a) 2,015
Pooled Loan Financing Program-St. Camillus
Health System, Inc., Series 2002E . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2022 (a) 2,100
Wheaton Franciscan Services, Inc., Series 2002 . . . . . . . . . . . . . . . . . . . 2005-2030 4.00%-6.25% 213,440
Pooled Loan Financing Program –
The Richland Hospital, Inc., Series 2002G . . . . . . . . . . . . . . . . . . . . . 2006-2016 (a) 1,150
Ministry Health Care, Inc., Series 2002 . . . . . . . . . . . . . . . . . . . . . . . . . 2006-2032 4.00%-5.50% 164,915
WHA Capital Access Designated Pool Program –
Meriter Retirement Services, Series 2002 . . . . . . . . . . . . . . . . . . . . . . . 2005-2025 (a) 7,735
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