790 financings. Since its creation in 1979, WHEFA has completed

Transcription

1 2015 Annual Report

2 790 financings Since its creation in 1979, WHEFA has completed $22.1 billion totaling more than 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.

3 Executive Director s Letter WHEFA is a Great Resource 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. 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

4 Contents Mission & Vision Statements... 2 Location of WHEFA Borrowers WHEFA Charts of WHEFA Activity WHEFA Members, Staff and Consultants Independent Auditors Report... On CD The Year in Review 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 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

5 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 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 His current term expires June 30, 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 His current term expires June 30, 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 His current term expires June 30, 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 His term expires June 30, 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 His current term expires June 30, WHEFA 2015 Annual Report 3

6 WHEFA Staff Dennis P. Reilly, Executive Director Mr. Reilly has been the Executive Director at WHEFA since October 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 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 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 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 Schenck SC Independent Auditors Schenck SC has been Independent Auditors to WHEFA since WHEFA 2015 Annual Report

7 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) represents WHEFA s 36 th 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, private placements totaling $752,236, 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) WHEFA 2015 Annual Report 5

8 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 5 Educational Facilities: Woodland Hill Senior Housing Alverno College x 2 Woodside Senior Communities Carthage College Edgewood College 7 Multi-Site Acute Care Facilities: Aspirus x 2 Lawrence University of Wisconsin The Medical College of Wisconsin x 2 Bellin Memorial Hospital Hospital Sisters Services ProHealth Care x 2 Rogers Memorial Hospital ThedaCare x 2 Wheaton Franciscan Services 3 Other Facilities: Goodwill Industries of Southeastern Wisconsin Riverfront Foundation and Riverfront Activity Center Sixteenth Street Community Health Centers 6 WHEFA 2015 Annual Report

9 INDIVIDUAL BOND ISSUES FOR THE FISCAL YEAR ENDING JUNE 30, 2015 $11,486,000 Sheboygan Senior Community Close Date: July 9, 2014 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 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 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 Woodside Senior Communities Close Date: July 11, 2014 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. 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 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%). WHEFA 2015 Annual Report 7

10 The Year In Review (continued) $11,554,244 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 Close Date: August 8, 2014 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 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 WHEFA 2015 Annual Report

11 The Year In Review (continued) $51,785,000 Rogers Memorial Hospital Close Date: August 15, 2014 Rogers Behavioral Health System employs approximately 860 full-time equivalents. 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. - 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 Close Date: September 2, 2014 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. 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%). WHEFA 2015 Annual Report 9

12 The Year In Review (continued) $16,049,964 Kirkland Crossings Close Date: September 4, 2014 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, 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 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 Close Date: October 15, 2014 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, 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. - Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services 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 WHEFA 2015 Annual Report

13 The Year In Review (continued) $21,200,000 Spooner Health System Close Date: October 23, 2014 Spooner Health System 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. 146 jobs will be retained with an annual payroll of $7,720,000. 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 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 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 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 Close Date: October 28, 2014 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%). WHEFA 2015 Annual Report 11

14 The Year In Review (continued) $35,505,000 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 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 Close Date: November 7, 2014 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 WHEFA 2015 Annual Report

15 The Year In Review (continued) $180,000,000 Hospital Sisters Services Close Date: November 12, 2014 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. 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 Close Date: November 13, 2014 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, 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. - Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services 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%). WHEFA 2015 Annual Report 13

16 The Year In Review (continued) $36,065,000 Goodwill Industries of Southeastern Wisconsin Close Date: November 25, 2014 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 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 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 Close Date: December 9, 2014 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. 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 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 WHEFA 2015 Annual Report

17 The Year In Review (continued) $13,780,000 Wisconsin Illinois Senior Housing Close Date: December 15, 2014 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. This project will create 12 permanent jobs with an annual payroll of $355,000, as well as 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 Close Date: December 16, 2014 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 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%). WHEFA 2015 Annual Report 15

18 The Year In Review (continued) $22,088,000 Marquardt Village Close Date: December 17, 2014 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. This project will create 18 permanent jobs with an annual payroll of $330,000, as well as 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 Close Date: December 18, 2014 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 WHEFA 2015 Annual Report

19 The Year In Review (continued) $17,329,000 Franciscan Sisters of Christian Charity Sponsored Ministries Close Date: December 19, 2014 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. 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 Close Date: December 23, 2014 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%). WHEFA 2015 Annual Report 17

20 The Year In Review (continued) $125,670,000 ThedaCare 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 Close Date: January 8, 2015 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 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 WHEFA 2015 Annual Report