NEW ISSUE Rating ¹†: Moody’s: Aa3Book-Entry-Only

TAX STATUS: In the opinion of Thrun Law Firm, P.C., Bond Counsel, assuming continued compliance by the College with certain requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds is excluded from gross income for federal income tax purposes, as described in the opinion, and the Bonds and interest thereon are exempt from all taxation in the State of Michigan, except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof. The College has covenanted to comply with those requirements of the Code necessary to continue the exclusion of interest on the Bonds from gross income for federal income tax purposes. The College has designated the Bonds as “QUALIFIED TAX-EXEMPT OBLIGATIONS” within the meaning of the Code, and has covenanted to comply with those requirements of the Code necessary to continue the exclusion of interest on the Bonds from gross income for federal income tax purposes.

$9,255,000JACKSON COLLEGE

State of Michigan2016 Refunding Bonds

(General Obligation - Limited Tax)

PURPOSE AND SECURITY: The Bonds are issued by Jackson College, State of Michigan (the “College”) for the purpose of refunding a certain prior outstanding obligation of the College (the “Refunded Bonds”). The Bonds are issued under the provisions of Act 331, Public Acts of Michigan, 1966, as amended, and Act 34, Public Acts of Michigan, 2001, as amended. The College has pledged the limited tax full faith and credit of the College for the payment of principal and interest on the Bonds. The College has further pledged to levy sufficient ad valorem taxes within its authorized millage annually, as a first budget obligation, said levy must be subject to constitutional, statutory and charter tax rate limitations. The College not having the power to levy taxes for the payment of the Bonds in excess of its constitutional, statutory or charter tax rate limitation, the Bonds will be limited tax general obligations of the College, and, if tax collections are insufficient to pay the principal of or interest on the Bonds when due, the College pledges to use any and all other resources available for the payment of the Bonds. The College reserves the right to issue additional bonds of equal standing.

BOOK-ENTRY-ONLY: The Bonds are issuable only as fully registered Bonds without coupons, and when issued, will be registered in the name of Cede & Co., as Bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Purchases of beneficial interests in the Bonds will be made in book-entry only form, in the denominations of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their beneficial interest in Bonds purchased. So long as Cede & Co. is the Bondholder, as nominee of DTC, references herein to the Bondholders or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners of the Bonds. See BOOK-ENTRY ONLY SYSTEM herein.

PAYMENT OF BONDS: Interest on the Bonds will be payable semiannually on May 1 and November 1 of each year commencing on May 1, 2016. The Bonds will be registered Bonds, of the denomination of $5,000 or multiples thereof not exceeding for each maturity the principal amount of such maturity. The principal and interest shall be payable at the corporate trust office of The Huntington National Bank, Grand Rapids, Michigan (the “Paying Agent”) or such other Paying Agent as the College may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to any interest payment date. So long as DTC or its nominee, Cede & Co., is the Bondholder, such payments will be made directly to such Bondholder. Disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants and Indirect Participants, as more fully described herein. Interest shall be paid when due by check or draft mailed to the registered owner as shown on the registration books as of the fifteenth day of the month preceding the payment date for each interest payment.

Dated: February 3, 2016 Principal Due: May 1 of each year as shown below

MATURITY SCHEDULE(Base CUSIP§: 46723M)

Year AmountInterest

Rate Yield CUSIP§ Year AmountInterest

Rate Yield CUSIP§2017 $ 75,000 2.00% 1.00% BM1 2022 $1,015,000 2.00% 1.40% BS82018 940,000 2.00 1.10 BN9 2023 1,040,000 2.00 1.55 BT62019 960,000 2.00 1.15 BP4 2024 1,060,000 2.00 1.70 BU32020 980,000 2.00 1.20 BQ2 2025 1,080,000 3.00 1.85 BV12021 995,000 2.00 1.30 BR0 2026 1,110,000 3.00 2.00 BW9

City SecuritiesNO PRIOR REDEMPTION: Bonds of this issue are not subject to redemption prior to maturity. See “NO PRIOR REDEMPTION” herein.

BOND COUNSEL: The Bonds will be offered when, as and if issued by the College subject to the approving legal opinion of Thrun Law Firm, P.C., East Lansing, Michigan.

This cover page conTains informaTion for a quick reference only. iT is noT a summary of This issue. invesTors musT read The enTire official sTaTemenT To obTain informaTion essenTial To making an informed invesTmenT decision.

Additional information relative to this Bond issue may be obtained from:

Public Financial Management, Inc.3989 Research Park Drive

Ann Arbor, Michigan 48108734-668-6688

official sTaTemenT daTed: January 11, 2016

¹ For an explanation of ratings, see “CREDIT RATING” herein.† As of the date of delivery§ Copyright 2016, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Service Bureau, a division of the McGraw-Hill

Companies, Inc. The District Library shall not be responsible for the selection of CUSIP numbers, nor any representation made as to their correctness on the Bonds or as indicated above.

Jackson College2111 Emmons Road

Jackson, Michigan 49201517-787-0800

517-796-8596 FAX

BOARD OF TRUSTEES

CHAIRMANSamuel R. Barnes

Term Expires 12/31/2020

VICE CHAIRMANJohn M. Crist

Term Expires 12/31/2018

SECRETARYSheila A. Patterson

Term Expires 12/31/2020

TREASURERDonna L. Lake

Term Expires 12/31/2018

TRUSTEESMatthew R. Heins

Term Expires 12/31/2020

Philip E. HoffmanTerm Expires 12/31/2016

Dr. Edward A. MatheinTerm Expires 12/31/2016

PRESIDENTDr. Daniel J. Phelan

VICE PRESIDENT OF FINANCE AND CFODale R. Dopp

CONTROLLER

Darrell Norris

PROFESSIONAL SERVICES

PAYING AGENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Huntington National Bank

BOND COUNSEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thrun Law Firm, P.C.

FINANCIAL CONSULTANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public Financial Management, Inc.

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TABLE OF CONTENTS

Page

INFORMATION FOR BIDDERS . . . . . . . . . . . . . . . . . 1PURPOSE AND SECURITY . . . . . . . . . . . . . . . . . 1NO PRIOR REDEMPTION . . . . . . . . . . . . . . . . . . 1NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . . . 1BOOK-ENTRY ONLY SYSTEM . . . . . . . . . . . . . 1TRANSFER OUTSIDE BOOK-ENTRY-ONLY

SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3TAX PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . 3MICHIGAN PROPERTY TAX REFORM . . . . . . . 4LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4LEVY AND COLLECTION OF TAXES FOR

PAYMENT OF THE BONDS ANDBONDHOLDER’S REMEDIES . . . . . . . . . . . 4

TAX MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . 5State of Michigan . . . . . . . . . . . . . . . . . . . . . . . 5Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Original Issue Premium . . . . . . . . . . . . . . . . . . 5Future Developments . . . . . . . . . . . . . . . . . . . . 6

QUALIFIED BY THE MICHIGAN DEPARTMENT OF TREASURY . . . . . . . . . . 6

CONTINUING DISCLOSURE . . . . . . . . . . . . . . . 6BOND COUNSEL’S RESPONSIBILITY . . . . . . . 6FINANCIAL CONSULTANT’S OBLIGATION . . 7CREDIT RATING . . . . . . . . . . . . . . . . . . . . . . . . . 7PLAN OF REFUNDING . . . . . . . . . . . . . . . . . . . . 8SOURCES AND USES . . . . . . . . . . . . . . . . . . . . . 8

GENERAL FINANCIAL INFORMATION . . . . . . . . . 9AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9POPULATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9PROPERTY VALUATIONS . . . . . . . . . . . . . . . . . 9

Historical Valuation . . . . . . . . . . . . . . . . . . . . . 9Per Capita Valuation . . . . . . . . . . . . . . . . . . . . 9Industrial Facilities Tax . . . . . . . . . . . . . . . . . 10Renaissance Zone . . . . . . . . . . . . . . . . . . . . . . 10Tax Increment Authorities . . . . . . . . . . . . . . . 10

TAX BASE COMPOSITION . . . . . . . . . . . . . . . . 11MAJOR TAXPAYERS . . . . . . . . . . . . . . . . . . . . . 12CONSTITUTIONAL MILLAGE ROLLBACK . . 12TAX RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Jackson College . . . . . . . . . . . . . . . . . . . . . . . 13Other Major Taxing Units . . . . . . . . . . . . . . . 13

TAX LEVIES AND COLLECTIONS . . . . . . . . . 13LABOR FORCE . . . . . . . . . . . . . . . . . . . . . . . . . . 14PENSION FUND . . . . . . . . . . . . . . . . . . . . . . . . . 14OTHER POST-EMPLOYMENT BENEFITS . . . 15STATE APPROPRIATIONS . . . . . . . . . . . . . . . . 15TUITION AND STUDENT FEES . . . . . . . . . . . . 16SOURCES OF REVENUE FOR OPERATIONS . 16

DEBT STATEMENT . . . . . . . . . . . . . . . . . . . . . . 16DEBT RATIOS . . . . . . . . . . . . . . . . . . . . . . . . . . . 17DEBT HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . 17FUTURE FINANCING . . . . . . . . . . . . . . . . . . . . 17OTHER BORROWING . . . . . . . . . . . . . . . . . . . . 17LEGAL DEBT MARGIN . . . . . . . . . . . . . . . . . . . 17

GENERAL ECONOMIC INFORMATION . . . . . . . . 18LOCATION AND AREA . . . . . . . . . . . . . . . . . . . 18POPULATION BY AGE . . . . . . . . . . . . . . . . . . . 18INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18EMPLOYMENT CHARACTERISTICS . . . . . . . 19EMPLOYMENT BREAKDOWN . . . . . . . . . . . . 19UNEMPLOYMENT . . . . . . . . . . . . . . . . . . . . . . . 20BANKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

GENERAL COLLEGE INFORMATION . . . . . . . . . . 21DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 21MISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21BOARD OF TRUSTEES . . . . . . . . . . . . . . . . . . . 21ADMINISTRATIVE STAFF . . . . . . . . . . . . . . . . 21COLLEGE DISTRICT ENROLLMENT . . . . . . . 22

Historical Enrollment . . . . . . . . . . . . . . . . . . . 22EXISTING COLLEGE FACILITIES . . . . . . . . . . 23OTHER MATTERS . . . . . . . . . . . . . . . . . . . . . . . 24

APPENDIX A - BUDGET . . . . . . . . . . . . . . . . . . . . A-1

APPENDIX B - AUDIT . . . . . . . . . . . . . . . . . . . . . . . B-1

APPENDIX C - FORM OF CONTINUINGDISCLOSURE AGREEMENT . . . . . . . . . . . . . . C-1

APPENDIX D - DRAFT LEGAL OPINION . . . . . . . D-1

APPENDIX E - DRAFT OFFICIAL NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . E-1

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INFORMATION FOR BIDDERS

$9,255,000JACKSON COLLEGE

State of Michigan2016 Refunding Bonds

(General Obligation - Limited Tax)

DATED: February 3, 2016

FIRST INTEREST: May 1, 2016

REGISTRATION: Principal and Interest

PAYING AGENT: The Huntington National Bank, Grand Rapids, Michigan

TAX DESIGNATION: QUALIFIED TAX - EXEMPT OBLIGATIONS

PRINCIPAL DUE: May 1, annually as shown on the front cover

PURPOSE AND SECURITY

The Bonds are issued by Jackson College, State of Michigan (the “College”) for the purpose of refunding a portionof the College’s 2006 Community College Facility Bonds, Dated June 1, 2006 (the "Refunded Bonds"). The Bonds areissued under the provisions of Act 331, Public Acts of Michigan, 1966, as amended, and Act 34, Public Acts of Michigan,2001, as amended. The College has pledged the limited tax full faith and credit of the College for the payment of principaland interest on the Bonds. The College has further pledged to levy sufficient ad valorem taxes within its authorized millageannually, as a first budget obligation, said levy must be subject to constitutional, statutory and charter tax rate limitations. The College not having the power to levy taxes for the payment of the Bonds in excess of its constitutional, statutory orcharter tax rate limitation, the Bonds will be limited tax general obligations of the College, and, if tax collections areinsufficient to pay the principal of or interest on the Bonds when due, the College pledges to use any and all other resourcesavailable for the payment of the Bonds. The College reserves the right to issue additional bonds of equal standing.

NO PRIOR REDEMPTION

Bonds of this issue are not subject to redemption prior to maturity.

NOTICE OF SALE

See “APPENDIX E - DRAFT OFFICIAL NOTICE OF SALE,” for further information regarding this issue.

BOOK-ENTRY ONLY SYSTEM

The information in this section has been furnished by The Depository Trust Company, New York, New York ("DTC"). No representation is made by The Huntington National Bank, Grand Rapids, Michigan (the “Paying Agent”) as to thecompleteness or accuracy of such information or as to the absence of material adverse changes in such information subsequentto the date hereof. No attempt has been made by the College or the Paying Agent to determine whether DTC is or will befinancially or otherwise capable of fulfilling its obligations. Neither the College nor the Paying Agent will have anyresponsibility or obligation to Direct Participants, Indirect Participants (both as defined below) or the persons for which theyact as nominees with respect to the Bonds, or for any principal, premium, if any, or interest payment thereof.

The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the"Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC'spartnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registeredSecurity certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and willbe deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will beissued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to anyremaining principal amount of such issue.

DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New YorkBanking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal ReserveSystem, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency"registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides assetservicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money marketinstruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates

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the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, throughelectronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need forphysical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of TheDepository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities ClearingCorporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the usersof its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securitiesbrokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationshipwith a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. TheDTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTCcan be found at www.dtcc.com.

Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive acredit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("BeneficialOwner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive writtenconfirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providingdetails of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through whichthe Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished byentries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners willnot receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry systemfor the Securities is discontinued.

To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the nameof DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC.The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effectany change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's recordsreflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be theBeneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalfof their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to IndirectParticipants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements amongthem, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securitiesmay wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities,such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Ownersof Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmitnotices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to theregistrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less thanall of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of eachDirect Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unlessauthorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails anOmnibus Proxy to College as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting orvoting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listingattached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or suchother nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants'accounts upon DTC's receipt of funds and corresponding detail information from College or Agent, on payable date inaccordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will begoverned by standing instructions and customary practices, as is the case with securities held for the accounts of customers inbearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or College,subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds,distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representativeof DTC) is the responsibility of College or Agent, disbursement of such payments to Direct Participants will be theresponsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct andIndirect Participants.

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A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, toTender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer theParticipant's interest in the Securities, on DTC's records, to Tender/Remarketing Agent. The requirement for physical deliveryof Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rightsin the Securities are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tenderedSecurities to Tender/Remarketing Agent's DTC account.

DTC may discontinue providing its services as depository with respect to the Securities at any time by givingreasonable notice to the College or Agent. Under such circumstances, in the event that a successor depository is not obtained,Security certificates are required to be printed and delivered.

The College may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successorsecurities depository). In that event, Security certificates will be printed and delivered to DTC.

The information in this section concerning DTC and DTC's book-entry system has been obtained from sources thatthe College believes to be reliable, but the College takes no responsibility for the accuracy thereof.

TRANSFER OUTSIDE BOOK-ENTRY-ONLY SYSTEM

In the event that the book-entry-only system is discontinued, the following provisions would apply to the Bonds. ThePaying Agent shall keep the registration books for the Bonds (the “Bond Register”) at its corporate trust office. Subject to thefurther conditions contained in the resolutions of the College authorizing the issuance and sale of the Bonds (collectively, the“Resolution”), the Bonds may be transferred or exchanged for one or more Bonds in different authorized denominations uponsurrender thereof at the corporate trust office of the Paying Agent by the registered owners or their duly authorized attorneys;upon surrender of any Bonds to be transferred or exchanged, the Paying Agent shall record the transfer or exchange in the BondRegister and shall authenticate replacement Bonds in authorized denominations. The College and Paying Agent shall beentitled to treat the registered owners of the Bonds, as their names appear in the Bond Register as of the appropriate dates, asthe owners of such Bonds for all purposes under the Resolution. No transfer or exchange made other than as described aboveand in the Resolution shall be valid or effective for any purposes under the Resolution.

TAX PROCEDURES

Article IX, Section 3, of the Michigan Constitution provides that the proportion of true cash value at which propertyshall be assessed shall not exceed 50% of true cash value. The Michigan Legislature by statute has provided that propertyshall be assessed at 50% of its true cash value, except as described below. The Michigan Legislature or the electorate mayat some future time reduce the percentage below 50% of true cash value.

On March 15, 1994, the electors of the State approved an amendment to the Michigan Constitution permitting theLegislature to authorize ad valorem taxes on a non-uniform basis. The legislation implementing this constitutional amendmentadded a new measure of property value known as "Taxable Value." Beginning in 1995, taxable property has two valuations-- State equalized valuation ("SEV") and Taxable Value. Property taxes are levied on Taxable Value. Generally, TaxableValue of property is the lesser of (a) the Taxable Value of the property in the immediately preceding year, adjusted for losses,and increased or reduced by the lesser of the inflation rate or 5%, plus additions, or (b) the property's current SEV. Undercertain circumstances, therefore, the Taxable Value of property may be different from the same property's SEV.

When property is sold or transferred, Taxable Value is adjusted to the SEV, which under existing law is 50% of thecurrent true cash value. The Taxable Value of new construction is equal to current SEV. Taxable Value and SEV of existingproperty are also adjusted annually for additions and losses.

Responsibility for assessing taxable property rests with the local assessing officer of each township and city. Anyproperty owner may appeal the assessment to the local board of review, to the Michigan Tax Tribunal, and ultimately to theMichigan Courts.

The Michigan Constitution also mandates a system of equalization for assessments. Although the assessors for eachlocal unit of government within a county are responsible for actually assessing at 50% of true cash value, adjusted for TaxableValue purposes, the final SEV and Taxable Value are arrived at through several steps. Assessments are established initiallyby the municipal assessor. Municipal assessments are then equalized to the 50% levels as determined by the county'sdepartment of equalization. Thereafter, the State equalizes the various counties in relation to each other. SEV is important,aside from its use in determining Taxable Value for the purpose of levying ad valorem property taxes, because of its role inthe spreading of taxes between overlapping jurisdictions, the distribution of various State aid programs, State revenue sharingand in the calculation of debt limits.

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Property that is exempt from property taxes, e.g., churches, government property, public schools, is not includedin the SEV and Taxable Value data in the Official Statement. Property granted tax abatements under Act 198, Public Actsof Michigan, 1974, amended, is recorded on a separate tax roll while subject to tax abatement. The valuation of tax-abatedproperty is based upon SEV but is not included in either the SEV or Taxable Value data in the Official Statement except asnoted. Under limited circumstances, other state laws permit the partial abatement of certain taxes for other types of propertyfor periods of up to 12 years.

MICHIGAN PROPERTY TAX REFORM

On November 5, 2013, March 28, 2014, and April 1, 2014, Governor Snyder signed into law a package of billsamending and replacing legislation enacted in 2012 to phase-out most personal property taxes in Michigan. The bills werecontingent on Michigan voters approving a ballot question authorizing a new municipal entity, the Local CommunityStabilization Authority ("LCSA"), to levy a local component of the statewide use tax and distribute that revenue to local unitsof government to offset their revenue losses resulting from the personal property tax reform. On August 5, 2014, votersapproved that ballot question.

The bill package, together with the original 2012 legislation, created two new exemptions from the personal propertytax. Under the "small taxpayer exemption," the commercial and industrial personal property of each owner with a combinedtrue cash value in a local tax collecting unit of less than $80,000 is exempt from ad valorem taxes in that collecting unitbeginning in 2014. For businesses that do not qualify for the "small taxpayer exemption," all "eligible manufacturing personalproperty" (personal property used more than 50% of the time in industrial processing or direct integrated support) purchasedand placed into service before 2006 or during or after 2013 becomes exempt beginning in 2016. Taxation on "eligiblemanufacturing personal property" placed into service after 2006 but before 2013 will be phased-out over time; with theexemption taking effect after the property has been in service for the immediately preceding 10 years. The legislation extendscertain personal property tax exemptions and tax abatements for technology parks, industrial facilities and enterprise zonesthat were to expire after 2012, until the voter-approved personal property tax exemptions take effect.

Pursuant to voter approval in August 2014, the legislation also includes formulas to reimburse municipalities,including community colleges, for 100% of their calculated lost operating millage revenue. To provide the reimbursement,the legislation reduces the state share of the use tax and authorizes the LCSA to levy a local component of the use tax anddistribute that revenue to qualifying local units. While the legislation provides reimbursement for prospective municipalityoperating losses, municipalities will only be reimbursed for ad valorem property taxes and any specific tax levied for thepayment of obligations incurred before January 1, 2013 pledging the unlimited or limited tax power of the municipality. Forthe 2014-2015 and 2015-2016 fiscal years, the State of Michigan will appropriate sufficient funds to the LCSA to reimbursemunicipalities for such debt losses.

Because the Bonds are refunding obligations incurred prior to January 1, 2013, the College expects to be reimbursedfor tax revenue it could have otherwise generated, without the exemptions, to make payments on the Bonds.

LITIGATION

The College has not been served with any litigation, administrative action or proceeding, nor, to the knowledge ofthe College, is there threatened any litigation restraining or enjoining the issuance or delivery of the Bonds or in any mannerquestioning the proceedings and authority under which the Bonds are to be issued or affecting the validity of the Bonds.

LEVY AND COLLECTION OF TAXES FOR PAYMENT OF THE BONDS AND BONDHOLDER’S REMEDIES

The College has pledged its full faith and credit for the prompt and timely payment of the principal of and intereston the Bonds. The full faith and credit pledge of the College is a limited tax general obligation, and the College is requiredto pay its debt service commitment on the Bonds as a first budget obligation from its general funds, including the collectionof any ad valorem taxes which it is authorized to levy. However, the ability of the College to levy such taxes is subject tocharter, statutory and constitutional limitations.

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Registered owners of the Bonds may attempt to obtain a money judgment against the College for the principalamount of the Bonds or interest not paid when due, and may periodically attempt to enforce the collection of the moneyjudgment by requiring the tax assessing officers for the College to place the amount of such judgment on the next tax rollsof the College. The rights of the holders of the Bonds and the enforceability of the Bonds are subject to bankruptcy,insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors' rights previouslyor later enacted and their enforcement also may be subject to the exercise of judicial discretion in appropriate cases.

TAX MATTERS

State of Michigan

In the opinion of Thrun Law Firm, P.C., East Lansing, Michigan (“Bond Counsel”), based on its examination of thedocuments described in its opinion, under existing State statutes, regulations and court decisions, the Bonds and the interestthereon are exempt from all taxation in the State of Michigan, except inheritance and estate taxes and taxes on gains realizedfrom the sale, payment or other disposition thereof.

Federal

In the opinion of Bond Counsel based upon its examination of the documents described in its opinion, under existingstatutes, regulations, rulings and court decisions, the interest on the Bonds is excluded from gross income for federal incometax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individualsand corporations. It should be noted, however, that certain corporations must take into account interest on the Bonds indetermining adjusted net current earnings for the purpose of computing the alternative minimum tax imposed on suchcorporations. The opinions set forth in the preceding sentences are subject to the condition that the College comply with allrequirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to theissuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income taxpurposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in grossincome for federal income tax purposes to be retroactive to the date of issuance of the Bonds. Bond Counsel will expressno opinion regarding other federal tax consequences arising with respect to the Bonds.

There are additional federal tax consequences relative to the Bonds and the interest thereon. The following is ageneral description of some of these consequences but is not intended to be complete or exhaustive and investors shouldconsult with their tax advisors with respect to these matters. Prospective purchasers of the Bonds should be aware that (i)interest on the Bonds is included in the effectively connected earnings and profits of certain foreign corporations for purposesof calculating the branch profits tax imposed by Section 884 of the Code, (ii) interest on the Bonds may be subject to a taxon excess net passive income of certain S Corporations imposed by Section 1375 of the Code, (iii) interest on the Bonds isincluded in the calculation of modified adjusted gross income for purposes of determining the taxability of social securityor railroad retirement benefits, (iv) the receipt of interest on the Bonds by life insurance companies may affect the federaltax liability of such companies, (v) in the case of property and casualty insurance companies, the amount of certain lossdeductions otherwise allowed is reduced by a specific percentage of, among other things, interest on the Bonds, (vi) holdersof the Bonds may not deduct interest on indebtedness incurred or continued to purchase or carry the Bonds, and (vii)commercial banks, thrift institutions and other financial institutions may deduct their costs of carrying certain obligations suchas the Bonds.

Original Issue Premium

For federal income tax purposes, the difference between the initial offering prices to the public (excludingbondhouses and brokers) at which certain Bonds, as set forth on the cover of this Official Statement, are sold and the amountspayable at maturity thereof (the “Premium Bonds”), constitutes for the original purchasers of the Premium Bonds anamortizable bond premium. Such amortizable bond premium is not deductible from gross income but is taken into accountby certain corporations in determining adjusted current earnings for the purpose of computing the alternative minimum tax,which may also affect liability for the branch profits tax imposed by Section 884 of the Code. The amount of amortizablebond premium allocable to each taxable year is generally determined on the basis of a taxpayer’s yield to maturity determinedby using the taxpayer’s basis (for purposes of determining loss on sale or exchange) of such Premium Bonds andcompounding at the close of each six-month accrual period. The amount of amortizable bond premium allocable to eachtaxable year is deducted from the taxpayer’s adjusted basis of such Premium Bonds to determine taxable gain upondisposition (including sale, redemption or payment on maturity) of such Premium Bonds.

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Future Developments

No assurance can be given that any future legislation or clarifications or amendments to the Code, if enacted intolaw, will not contain proposals which could cause the interest on the Bonds to be subject directly or indirectly to federal orstate income taxation, adversely affect the market price or marketability of the Bonds, or otherwise prevent bondholders fromrealizing the full current benefit of the status of the interest thereon.

It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject tobankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafterenacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicialdiscretion in appropriate cases.

INVESTORS SHOULD CONSULT WITH THEIR TAX ADVISORS AS TO THE TAX CONSEQUENCES OFTHEIR ACQUISITION, HOLDING OR DISPOSITION OF THE BONDS, INCLUDING THE TREATMENT OFORIGINAL ISSUE PREMIUM.

QUALIFIED BY THE MICHIGAN DEPARTMENT OF TREASURY

The College has received a letter from the Department of Treasury of the State of Michigan stating that the Collegeis in material compliance with the criteria of the Revised Municipal Finance Act, Act No. 34, Public Acts of Michigan, 2001,as amended, for a municipality to be granted qualified status. The College may therefore proceed to issue the Bonds withoutfurther approval from the Department of Treasury of the State of Michigan.

CONTINUING DISCLOSURE

Prior to delivery of the Bonds, the College will execute a Continuing Disclosure Agreement (the "Agreement") forthe benefit of the holders of the Bonds and the Beneficial Owners (as defined in the Agreement) to send certain informationannually and to provide notice of certain events to certain information repositories pursuant to the requirements of Rule 15c2-12(b)(5) (the "Rule") adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. Theinformation to be provided on an annual basis, the events which will be noticed on an occurrence basis and the other termsof the Agreement, are set forth in APPENDIX C - "FORM OF CONTINUING DISCLOSURE AGREEMENT" to thisOfficial Statement.

A failure by the College to comply with the Agreement will not constitute an event of default under the Resolutionand Beneficial Owners of the Bonds are limited to the remedies described in the Agreement. A failure by the College tocomply with the Agreement must be reported by the College in accordance with the Rule and must be considered by anybroker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market.Consequently, such failure may adversely affect the transferability and liquidity of the Bonds and their market price.

Except as disclosed below, the College has not in the previous five years, failed to comply, in all material respects,with any previous continuing disclosure agreements executed by the College pursuant to the Rule. While the College filedits audited financial statements and annual disclosure information timely over the past five years in compliance, in all materialrespects, with the previous continuing disclosure agreements executed by the College, the College filed late material eventnotices of credit rating changes of its underlying rating, and ratings affecting the bond insurers for certain prior bond issuesof the College. To the best of the College’s knowledge, the College did not receive notification from bond insurers or therating agencies of the rating changes for the bond insurer. The College is in the process of putting systems in place to identifyand file material event notices in a timely manner in the future.

BOND COUNSEL’S RESPONSIBILITY

The fees of Thrun Law Firm, P.C., East Lansing, Michigan (“Bond Counsel”) for services rendered in connection withits approving opinion are expected to be paid from Bond proceeds. Except to the extent necessary to issue its approving opinionas to the validity of the Bonds and tax matters relating to the Bonds and the interest thereon, and except as stated below, BondCounsel has not been retained to examine or review, and has not examined or reviewed any financial documents, statementsor materials that have been or may be furnished in connection with the authorization, issuance or marketing of the Bonds andaccordingly will not express any opinion with respect to the accuracy or completeness of any such financial documents,statements or materials.

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Bond Counsel has reviewed the statements made in this Official Statement on the cover page and under the heading"Information for Bidders", insofar as such statements summarize the language and effect of the Resolutions, the Bonds, theContinuing Disclosure Agreement, the Constitution of the State of Michigan, the laws of the State of Michigan and federalincome tax laws and, further, the statements under such headings are fair and accurate summaries thereof in all material respects.Except as otherwise disclosed on pages herein, Bond Counsel has not been retained to review and has not reviewed any otherportion of this Official Statement for accuracy or completeness, and has not made inquiry of any official or employee of theCollege or any other person and has made no independent verification of such other portions hereof, and further has notexpressed and will not express an opinion as to any portions hereof.

FINANCIAL CONSULTANT’S OBLIGATION

Public Financial Management, Inc., Ann Arbor, Michigan (the "Financial Advisor"), has been retained by the Collegeto provide certain financial advisory services. The Financial Advisor assisted in the preparation of the Official Statement andin other matters relating to the planning, structuring and issuance of the Bonds.

The information contained in the Official Statement was prepared in part by the Financial Advisor and is based oninformation supplied by various officials from records, statements and reports required by various local, county or state agenciesof the State of Michigan. To the best of the Financial Advisor's knowledge, all of the information contained in the OfficialStatement, which it assisted in preparing, while it may be summarized is complete and accurate. However, the FinancialAdvisor has not and will not independently verify the completeness and accuracy of the information contained in the OfficialStatement.

The Financial Advisor is a registered municipal advisor and is not engaged in the business of underwriting, marketingor trading of municipal securities or any other negotiable instrument. The Financial Advisor's duties, responsibilities and feesarise solely as financial advisor to the College. The Financial Advisor's fees are expected to be paid from Bond proceeds.

Further information concerning the Bonds may be secured from Public Financial Management, Inc., 3989 ResearchPark Drive, Ann Arbor, Michigan 48108. Telephone: 734-668-6688.

CREDIT RATING

Moody’s Investors Service, Inc. (“ Moody’s”) has assigned, as the of the date of delivery of the Bonds, its municipalbond rating of “Aa3”, to the Bonds.

An explanation of the significance of the rating may be obtained from the rating agency furnishing the same at thefollowing addresses Moody’s Investors Service, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007.

The aforementioned rating will reflect the sole view of the rating agency and there is no assurance that such rating willbe continued for any period of time, or that it will not be revised upwards or downwards or be withdrawn; a revision,suspension, or withdrawal of the rating may have an effect on the market price of these securities and should be noted.

A brief description of the Moody’s rating definitions reads as follows:

Moody’s Investors Service, Inc.

Bonds which are rated ‘Aaa’ are judged to be of the best quality. They carry the smallest degreeof investment risk and are generally referred to as ‘gilt edge.’ Interest payments are protected by a large orby an exceptionally stable margin and principal is secure. While the various protective elements are likelyto change, such changes as can be visualized are most unlikely to impair the fundamentally strong positionof such issues.

Bonds which are rated ‘Aa’ are judged to be of a high quality by all standards. Together with the‘Aaa’ group, they comprise what are generally known as high grade Bonds. They are rated lower than thebest Bonds because margins of protection may not be as large as in ‘Aaa’ securities or fluctuation ofprotective elements may be of great amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in the ‘Aaa’ securities.

Bonds which are rated ‘A’ possess many favorable investment attributes and are to be consideredas upper medium grade obligations. Factors giving security to principal and interest are considered adequate,but elements may be present which suggest a susceptibility to impairment some time in the future.

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Bonds which are rated ‘Baa’ are considered as medium grade obligations; i.e., they are neitherhighly protected nor poorly secured. Interest payments and principal security appear adequate for the presentbut certain protective elements may be lacking or may be characteristically unreliable over any great lengthof time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristicsas well.

General Note: Those Bonds in the ‘Aa’, ‘A’, and ‘Baa’ groups which Moody’s believes possess the strongest investment attributes are designated by thesymbols ‘Aa1', ‘A1' and ‘Baa1'. Under the expanded rating scale adopted by Moody’s January 7, 1997 the numerical rating modifiers 2 and 3 have beenadded for long-term debt. The numerical modifier 2 indicates that the security is in the mid-range of its category, while the modifier 3 indicates that theissue is in the lower end of its generic category. A triple-A (Aaa) rating will have no numerical modifier; it remains Moody’s highest bond rating.

PLAN OF REFUNDING

A portion of the proceeds of the Bonds, together with other available funds of the College, will be used to refundall or part of that portion of the Issuer's outstanding 2006 Community College Facilities Bonds dated June 1, 2006, in theoriginal amount of $14,640,000, which are callable on or after May 1, 2016, and are due and payable May 1, 2017 throughMay 1, 2026, inclusive (the “Prior Bonds”) and to establish an escrow fund (the “Escrow Fund”) composed of cash and non-callable direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, theUnited States of America or other obligations the principal of and interest on which are fully secured by the foregoing. TheEscrow Fund will be held by The Huntington National Bank, Grand Rapids, Michigan as escrow agent (the “Escrow Agent”)and will be used to pay the principal of and interest on the Prior Bonds at call for early redemption. The Escrow Fund willbe held by the Escrow Agent pursuant to an escrow agreement (the “Escrow Agreement”) which irrevocably directs theEscrow Agent to make the payment of the principal of and interest on the Prior Bonds at call for early redemption. TheEscrow Fund will be such that the cash and the principal and interest payments received on the investments will be sufficient,without reinvestment, except as may be provided in the Escrow Agreement, to pay the principal of and interest on the PriorBonds as they are called for early redemption, as set forth in the table below;

Principal of and Interest on thePrior Bonds to paid from the Escrow Fund

Date Principal Interest Total05/01/2016 $9,465,000.00 $210,937.50 $9,675,937.50TOTAL $9,465,000.00 $210,937.50 $9,675,937.50

The accuracy of (i) the mathematical computations of the adequacy of cash and certain obligations to be held inthe Escrow Fund and used, together with the earnings thereon, to pay the principal of and interest on the Prior Bonds and(ii) the computations of the yield on the Prior Bonds as originally issued and the yield of such obligations in the EscrowFund purchased with the contribution from the Prior Bond’s Debt Retirement Fund, supporting the conclusion of BondCounsel that the interest on the Bonds is excluded from gross income for federal income tax purposes as indicated underthe caption “TAX MATTERS” below, will be verified by Grant Thornton, Minneapolis, Minnesota. Such verification ofthe accuracy of the computations shall be based upon information supplied by the College’s Financial Advisor and oninterpretations of Section 148 of the Internal Revenue Code of 1986, as amended, as provided by Bond Counsel.

SOURCES AND USES

Sources of Funds TotalPar Amount of Bonds $9,255,000.00 Production 413,001.35 Contribution from Debt Fund 160,337.50 Total Sources $9,828,338.85

Uses of FundsDeposit to Escrow Account $9,671,752.00 Underwriter's Discount 79,541.44 Costs of Issuance 77,045.41 Total Uses $9,828,338.85

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JACKSON COLLEGE

GENERAL FINANCIAL INFORMATION

AREA

The College encompasses an area of approximately 707 square miles.

POPULATION

The estimated population for the district served by the College (the “College District”) is as follows.

CollegeYear District*2010 U.S. Census 160,2482000 U.S. Census 158,4221990 U.S. Census 149,756

* Estimated based on an extrapolation of the U.S. Census figures of the local units within the College District.

PROPERTY VALUATIONS

In accordance with Act No. 539, Public Acts of Michigan, 1982, and Article IX, Section 3 of the MichiganConstitution, the ad valorem State Equalized Valuation (SEV) represents 50% of true cash value. SEV does not includeany value of tax exempt property (e.g. churches, governmental property) or property granted tax abatements under Act No.198, Public Acts of Michigan, 1974, as amended. As a result of Proposal A, ad valorem property taxes are assessedon the basis of taxable value, which is subject to assessment caps. SEV is used in the calculation of debt margin andtrue cash value. See “TAX PROCEDURES” herein.

Taxable property in the College District is assessed by the local municipal assessors and is subject to review bythe County Equalization Department.

Historical ValuationTaxable State Equalized

Year Valuation Valuation2015 $4,317,954,029 $4,985,867,8502014 4,249,045,343 4,843,653,6182013 4,072,552,406 4,754,803,3302012 4,176,792,029 4,772,886,2302011 4,162,798,406 4,971,653,0682010 4,373,177,255 5,225,510,287

2015 Taxable Valuation $4,317,954,029Plus: 2015 IFT Taxable Value* 193,333,753

Total Value $4,511,287,782

* Millage is levied at half rate against the IFT Taxable Value.

Per Capita Valuation

2015 Per Capita Taxable Valuation $26,945.45 2015 Per Capita State Equalized Valuation $31,113.45 2015 Per Capita Estimated True Cash Valuation $62,226.90

¹ Information included in this Official Statement under the headings “General Financial Information, “General Economic Information,” and “GeneralCollege Information” was obtained from the College, unless otherwise noted.

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Industrial Facilities Tax

Act 198 of the Public Acts of Michigan, 1974, as amended (“Act 198”), provides significant property tax incentivesto industry to renovate and expand aging plants and to build new industrial facilities in Michigan. Under the provisions ofAct 198, qualifying cities, villages and townships may establish districts in which industrial firms are offered certain propertytax incentives to encourage restoration or replacement of obsolete industrial facilities and to attract new industrial facilities.

Property tax owners situated in such districts pay an Industrial Facilities Tax (“IFT”) in lieu of ad valorem taxes onthe facility and equipment for a period of up to 12 years. For rehabilitated plant and equipment, the IFT is determined bycalculating the product of the state equalized valuation of the replacement facility in the year before the effective date of theabatement certificate multiplied by the total mills levied by all taxing units in the current year. New plants and equipmentreceiving their abatement certificate prior to January 1, 1994 are taxed at one-half the total mills levied by all taxing units,other than mills levied for local and intermediate school district operating purposes or under the State Education Tax Act, plusone-half of the number of mills levied for school operating purposes in 1993. For new facility abatements granted after 1993,new plants and equipment are taxed at one-half of the total mills levied as ad valorem property taxes by all taxing units exceptmills levied under the State Education Tax Act, plus the number of mills levied under the State Education Act. For newfacility abatements granted after 1993, the State Treasurer may permit abatement of all, none or one-half of the mills leviedunder the State Education Tax Act. It must be emphasized, however, that ad valorem property taxes on land are not reducedin any way since land is specifically excluded under Act 198.

After expiration of the abatement certificate, the then-current SEV of the facility is returned to the ad valorem taxroll. The total amount of 2015 IFT Taxable Value in the College District is $193,333,753.

Renaissance Zone

Act 376, Public Acts of Michigan, 1996 (“Act 376”) authorized the creation of six urban, three rural and two ex-military facilities for designation as “renaissance zones.” The purpose of a renaissance zone is to foster economic developmentand stimulate industrial, commercial and residential improvements by, in part, providing certain tax credits or exemptionswithin the zone. One of the subzones lies within the College’s boundaries. Property within this subzone has a 2015 TaxableValue of $92,991,344.

Tax Increment Authorities

Act 450 of the Public Acts of Michigan, 1980 (the “TIFA Act”), Act 197 of the Public Acts of Michigan, 1975 (the“DDA Act”), Act 281 of the Public Acts of Michigan, 1986 (the “LDFA Act”), and Act 381 of 1996 Brownfield RedevelopmentAct (the “BRDA Act”) (together the “TIF Acts”) authorize the designation of specific districts known as Tax Increment FinanceAuthority (“TIFA”) Districts, Downtown Development Authority (“DDA”) Districts, Local Development Finance Authority(“LDFA”) Districts or Brownfield Redevelopment District Authority (“BRDA”) Districts (collectively “TIF Districts”). TIFDistricts are authorized to formulate tax increment financing plans for public improvements, economic development,neighborhood revitalization and historic preservation within said districts.

Tax increment financing permits the TIF Districts to capture tax revenues attributable to increases in value (“TIFCaptured Value”) of real and personal property located within an approved development area while any tax increment financingplans by an established district are in place. Pursuant to the TIF Acts, these captured revenues are used by the TIF District andare not passed on to the local taxing jurisdictions.

Act 146 of the Public Acts of Michigan, 2000 (the “Obsolete Property Rehabilitation Act”) authorizes a qualifiedlocal governmental unit to establish districts containing obsolete commercial or commercial housing property and allowsthe owner of such property in the district to secure a certificate exempting the facility on that property from ad volermproperty taxes, but subjects that property to an obsolete properties tax.

Act 147 of the Public Acts of Michigan, 1992 (the “Neighborhood Enterprise Zone Act”) authorizes a localgovernmental unit to establish neighborhood enterprise zones and allows owners of property in that zone to secure anenterprise zone certificate that exempts the facilities on that property from ad volerm property taxes, but subjects thatproperty to a neighborhood enterprise zone tax.

The TIF Captured Values and the values associated with Obsolete Property Rehabilitation Certificates andNeighborhood Enterprise Zone Certificates within the College District are broken down as follows by municipality:

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2015 Ad ValoremMunicipality Captured ValuationBlackman Twp DDA $15,062,625Blackman Twp LDFA 5,992,240Leoni Twp DDA 14,784,237City of Jackson DDA 35,294,196City of Jackson BRDA 6,538,967City of Jackson Obsolete Property Rehab Act 318,119City of Jackson Neighborhood Enterprise Zone 73,215City of Jackson Land Bank Parcels 15,956Village of Grass Lake DDA 5,421,531Village of Parma LDFA 2,478,647Village of Springport DDA 840,337TOTAL $86,820,070

The captured IFT valuations within the College District are as follows:

Municipality 2015 IFT Captured ValuationBlackman Township DDA $1,620,687Blackman Township LDFA 1,599,108Leoni Township DDA 1,854,232Village of Parma LDFA 1,550,552City of Jackson DDA 8,249,078Columbia Twp Tool & Die Ren Zone 184,860Spring Arbor Twp Tool & Die Ren Zone 210,113City of Jackson Renaissance Zone 310,444Village of Grass Lake DDA 62,655Village of Springport DDA 497,384TOTAL $16,139,113

TAX BASE COMPOSITION

A breakdown of the College District’s 2015 Taxable Valuation by municipality, class and use is as follows:

Total Taxable Percent ofBy Municipality Valuation TotalBlackman Township $502,891,007 11.65%Columbia Township 364,453,264 8.44Concord Township 73,635,380 1.71Grass Lake Township 221,968,516 5.14Hanover Township 128,676,694 2.98Henrietta Township 121,838,959 2.82Leoni Township 377,231,215 8.74Liberty Township 107,655,160 2.49Napoleon Township 234,182,151 5.42Norvell Township 128,932,096 2.99Parma Township 78,504,390 1.82Pulaski Township 48,939,458 1.13Rives Township 122,118,945 2.83Sandstone Township 141,903,135 3.29Spring Arbor Township 189,472,749 4.39Springport Township 64,934,007 1.50Summit Township 594,294,731 13.76Tompkins Township 97,981,565 2.27Waterloo Township 114,547,247 2.65City of Jackson 603,793,360 13.98TOTAL $4,317,954,029 100.00%

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Taxable Percent ofBy Class Valuation TotalReal Property $3,787,263,657 87.71%Personal Property 530,690,372 12.29TOTAL $4,317,954,029 100.00%

Taxable Percent ofBy Use Valuation TotalAgricultural $ 193,475,378 4.48%Commercial 525,153,807 12.16Industrial 149,333,550 3.46Residential 2,916,172,139 67.54Developmental 3,128,783 0.07Personal Commercial 113,515,809 2.63Personal Industrial 150,476,596 3.48Personal Utility 266,697,967 6.18TOTAL $4,317,954,029 100.00%

Source: Jackson County

MAJOR TAXPAYERS

The top ten taxpayers in the College District and their 2015 Taxable Valuations and Industrial Facilities TaxValuations are as follows:

Taxable IFT TotalTaxpayer Product/Service Valuation + Valuation = Valuation

MACI Automotive parts $143,873,943 $119,712,579 $263,586,522Consumers Energy Co Utility 184,293,903 0 184,293,903DPC Juniper LLC (1) Power plant 79,388,024 0 79,388,024Enbridge Utility 50,892,417 0 50,892,417Gerdau Mac Steel Manufacturing 29,961,532 1,429,755 31,391,287Ramco Jackson LTD Retail 15,447,723 0 15,447,723West Bay Exploration Utility 14,630,489 0 14,630,489Tennaco/Walker Automotive 13,570,324 0 13,570,324Michigan Electric Transmission Utility 13,004,390 0 13,004,390John Ganton Senior housing 12,781,152 0 12,781,152

TOTAL $557,843,897 $121,142,334 $678,986,231

The Taxable Valuations of the above taxpayers represent 12.92% of the College District’s 2015 Taxable Valuationof $4,317,954,029.

(1) DPC Juniper LLC is in a REN ZONE at 75%

Source: Jackson County Equalization Department.

CONSTITUTIONAL MILLAGE ROLLBACK

Article IX, Section 31 of the Michigan Constitution (also referred to herein as the “Headlee Rollback”) requiresthat if the total value of existing taxable property (State Equalized Valuation) in a local taxing unit, exclusive of newconstruction and improvements, increases faster than the U.S. Consumer Price Index from one year to the next, themaximum authorized tax rate for that local taxing unit must be reduced through a Millage Reduction Fraction unless newmillage is authorized by a vote of the electorate of the local taxing unit.

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TAX RATES (Per $1,000 of Valuation)

Each community college, school district, county, township, special authority and city has a geographical definitionwhich constitutes a tax district. Since college districts, local school districts and the county overlap either a township ora city, and intermediate school districts overlap college districts, local school districts and county boundaries, the result ismany different tax rate districts.

Jackson College 2015 2014 2013 2012 2011Voted 1.1446 1.1446 1.1446 1.1446 1.1446TOTAL 1.1446 1.1446 1.1446 1.1446 1.1446

The College District’s authorized millage of 1.33 was voted as a charter millage in November 1964. Amountslevied in tax years 2011 through 2015, as shown above, are the maximum amounts that can be levied after application ofthe Headlee Rollback.

Other Major Taxing Units 2015 2014State Education Tax 6.0000 6.0000Jackson County 5.8511 5.8511 County Medical Care Facility 0.1398 0.1398City of Jackson (Operating) 15.9889 15.9789Jackson County DDA 1.9996 1.9996Jackson Transportation Auth. 1.0000 1.0000Jackson District Library 1.2593 1.2593Jackson I/S/D 8.7600 8.7600

Source: Jackson County Equalization Department.

TAX LEVIES AND COLLECTIONS

The College District’s fiscal year begins July 1 and ends June 30. College District’s property taxes are due July1 and December 1 of each fiscal year and are payable without interest on or before the following September 14 and February14, respectively, and without penalty on or before the following February 14. All real property taxes remaining unpaid onMarch 1st of the year following the levy are turned over to the County Treasurer for collection. Jackson County (the“County”) annually pays from its Tax Payment Fund delinquent taxes on real property to all taxing units in the County,including the College District, shortly after the date delinquent taxes are returned to the County Treasurer for collection.

A history of tax levies and collections for the College District is as follows:

Levy Operating Collections to Collections Plus FundingYear Tax Levy March 1 of Following Year To June 30 of Following Year2015 $4,842,394 (In process of collection) N/A2014 4,668,000 $4,518,714 96.80% $4,782,538 97.61%2013 4,782,538 4,506,825 94.24 4,782,538 100.002012 4,641,703 4,357,948 93.89 4,641,703 100.002011 4,690,925 4,368,543 93.13 4,690,925 100.00

The Tax Payment Fund is financed through the issuance of General Obligation Limited Tax Notes (GOLTNs) bythe County. Although the College anticipates the continuance of this program by the County, the ability of the County to issuesuch GOLTNs is subject to market conditions at the time of offering. In addition, Act 206, Public Acts of Michigan, 1893,as amended, provides in part that: “The primary obligation to pay to the county the amount of taxes and interest on the taxesshall rest with the local taxing units and the state for the state education tax under the state education tax act... If the delinquenttaxes that are due and payable to the county are not received by the county for any reason, the county has full right of recourseagainst the taxing unit or to the state for the state education tax... to recover the amount of the delinquent taxes and interest...” On the third Tuesday in July in each year, a tax sale is held by the County at which lands delinquent for taxes assessed in thethird year preceding the sale, or in a prior year, are sold for the total of the unpaid taxes of those years. Pursuant to Act 123,Public Acts of Michigan, 1999, as amended, property owners with taxes that are two years delinquent will be foreclosed andthe property will be sold at public auction. For example, property owners who fail to pay their 2015 delinquent property taxeswill lose their property in March 2018.

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LABOR FORCE

A breakdown of the number of employees of the College and their affiliations with organized groups is as follows:

ContractEmployees Number Bargaining Unit ExpirationFull-time Administrators 45 Non-Affiliated N/APart-time Administrators 1 Non-Affiliated N/AFull-time Faculty 77 Non-Affiliated N/APart-time Faculty 61 Non-Affiliated N/AFull-time Technical 62 JCC MESOA 06/30/2018Part-time Technical 15 JCC MESOA 06/30/2018Full-time Clerical 20 JCC MESOA 06/30/2018Part-time Clerical 15 JCC MESOA 06/30/2018TOTALS 296

The College has not experienced a strike by any of its bargaining units within the past ten years.

PENSION FUND

For the period July 1 through June 30 the College pays an amount equal to a percentage of its employees’ wagesto the Michigan Public School Employees Retirement System (“MPSERS”) which is administered by the State of Michigan.These contributions are required by law and are calculated by using the contribution rates and periods provided in the tablebelow of the employees’ wages.

On June 28, 2010, the Michigan Court of Claims issued an injunction in response to a challenge to the authority ofthe State to require employees who began working before July 1, 2010, to contribute 3% of reportable wages to the retireehealth care trust at MPSERS. As a result, the State has adjusted the contribution rate due on employees wages paid betweenNovember 1, 2010 and September 30, 2011 to 20.66% for members who first worked prior to July 1, 2010 and 19.16% forPension Plus members. In March 2011, the Court of Claims granted the plaintiffs' motions for summary disposition findingthat the mandatory 3% contribution violated both the U.S. and Michigan Constitutions. The State appealed the ruling to theMichigan Court of Appeals. In August of 2012, the Court of Appeals affirmed the decision of the Court of Claims. The Stateof Michigan has filed an Application for Leave to Appeal with the Michigan Supreme Court.

On September 4, 2012, the governor signed Public Act 300 of 2012 ("Act 300") to reform MPSERS. Act 300changed employee contributions to their pensions and retiree health benefits, shifting the 3% pension contribution to retireehealth benefits. Act 300 also increased the amount retirees contribute to their health insurance, and employees are requiredto choose to increase contributions to their pension plan, maintain current contribution rates and freeze existing benefits, orfreeze existing pension benefits and move into a defined contribution plan. In addition, the legislation ended retiree healthbenefits for new hires. On November 29, 2012, the Ingham County Circuit Court, sitting as the Court of Claims, ruled thatthe substantive provisions of the Act 300 were constitutional except for one particular provision relating to an "electionwindow" for healthcare benefits. The Legislature promptly adopted legislation which was signed into law by the Governoraddressing the constitutional concerns of the election window raised by the Court of Claims. Two public school employeeunions appealed the Court of Claims decision to the Michigan Court of Appeals, which affirmed the Court of Claims' rulingon January 14, 2014. The unions appealed the matter to the Michigan Supreme Court. On April 8, 2015, the MichiganSupreme Court upheld Act 300 by ruling that the required employee elections to participate and contribute to retiree healthcareand defined benefit pension plans are constitutional under both the Michigan and United States Constitutions. It is unknownat this time if plaintiffs will appeal this decision to the federal court. The Michigan Supreme Court has not yet ruled on themandatory 3% retiree health contributions made by members from July 2010 to September 2012 before Act 300 took effect.

The College estimated contribution to MPSERS for 2015/16 and the contributions for the previous four yearsare shown below.

Standard Pension PlusContribution Period Contribution Rate Contribution Rate

Oct. 1, 2015-Sept. 30, 2016 25.78 - 27.78% 25.56 - 27.13%Oct. 1, 2014-Sept. 30, 2015 25.78 - 27.27 25.70 - 27.19Oct. 1, 2013-Sept. 30, 2014 24.79 - 26.96 25.56 - 26.63Feb. 1, 2013-Sept. 30, 2013 24.32 - 26.96 25.13 - 26.20Oct. 1, 2012-Jan. 31, 2013 25.36 24.13Oct. 1, 2011-Sept. 30, 2012 24.46 23.23

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Fiscal Year Ending Contributions toJune 30 MPSERS

2016 Estimate $3,500,0002015 3,452,7742014 3,802,0002013 3,704,0002012 3,760,000

Source: Audited financial statementsNote: Effective for fiscal years beginning after June 15, 2014, GASB Statement 68 requires all reporting units in a multi-employer cost sharing pensionplan to record a balance sheet liability for their proportionate share of the net pension liability of the plan. The College’s proportionate share of the netpension liability, calculated using a discount rate of 8.0% (7.0% for the pension Plus Plan), is $31,557,334.

Jackson College Optional Retirement Program (“JCCORP”)

Effective July 1, 1996, the College established the Jackson College Optional Retirement Program (“JCCORP”),a defined contribution pension plan qualified under section 414(d) of the Internal Revenue Code. Under this plan, eligibleemployees as of July 1, 1996 and who are members of MPSERS, may continue their membership in MPSERS or may electto participate in the plan and retain limited membership in the retirement system. An employee becoming eligible after July1, 1996 may elect to become a member of MPSERS or to participate in JCCORP. Benefit provisions and contributionrequirements are established and may be amended by the College District. Required contributions are made by the CollegeDistrict and the participants at a rate of 14% and 4% of eligible compensation, respectively. The estimated total contributionto JCCORP for the 2014/15 fiscal year and the contributions for the previous four years are shown below.

Fiscal Year Ending Contributions toJune 30 JCCORP2016 (Estimated) $905,0002015 903,0002014 847,0002013 905,0002012 915,000

OTHER POST-EMPLOYMENT BENEFITS

Jackson College contributes to the Michigan Public School Employees Retirement System (MPSERS), acost-sharing multiple-employer defined benefit pension plan administered by the State of Michigan Department ofManagement and Budget, Office of Retirement Systems. Substantially all College employees are eligible to participate inthe MPSERS, which provides retirement, survivor and disability benefits, and death benefits to plan members andbeneficiaries. State of Michigan statute assigns the authority to establish and amend benefit provisions to the Statelegislature. The Office of Retirement Systems issues a publicly available financial report that includes financial statementsand required supplementary information for MPSERS. That report may be obtained by writing to Michigan Public SchoolEmployees Retirement System, 7150 Harris Drive, P.O. Box 30171, Lansing, Michigan, 48909 or by calling1-800-381-5111. (See Appendix B herein)

STATE APPROPRIATIONS

The Michigan Constitution requires that the State Legislature provide, by law, financial support for communitycolleges. Each year the College District submits to the State a request for an appropriation for the ensuing fiscal year. Thefollowing sets forth the State appropriations received by the College District for each of the last four fiscal years and theestimated appropriation for the current fiscal year.

Fiscal Year Ending StateJune 30 Appropriations*2016 (Estimated) $13,300,0002015 13,218,9252014 12,482,0042013 11,610,5002012 11,219,700

*General Fund Only

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TUITION AND STUDENT FEES

The boards of individual community colleges have the authority to set tuition rates. The College's tuition rates forstudents within the State, as of June 1, 2015, are $125.00 per contact hour for in-district students and $172.00 per contacthour for in-state but out-of-district students. The College's tuition rate for out-of-State students, as of June 1, 2015, is$250.00 per contact hour. Tuition for senior citizens (65 and older) is $40.00 per contact hour. All students will beassessed a Student Service fee of $38.00 per contact hour. Course fees are charged to cover the costs of consumablematerials directly related to or used for the course. The Course Fee for online course are based on total billing contact hoursfor each course starting at $74.00 for the first contact hour and each additional contact hours at $31.00. The following setsforth the amounts collected from student tuition for each of the last four fiscal years and the estimated 2015/16 amount.

Fiscal Year Tuition & Fees

2016 (Estimated) $24,000,000 2015 22,929,4762014 22,876,7372013 24,788,8042012 26,789,635

SOURCES OF REVENUES FOR OPERATIONS

The College has received during each of the last four fiscal years and an estimate for the current year the followingunrestricted revenues for operational purposes:

Fiscal Year Ending State Gross Tuition & Total

June 30 Appropriation Student Fees Property Taxes Other Revenues2015/16 Estimate $13,300,000 $24,000,000 $4,900,000 $3,600,000 $45,800,0002014/15 13,218,925 22,929,476 4,842,394 3,541,950 44,532,7452013/14 12,482,004 22,876,737 4,668,000 3,195,129 43,221,8702012/13 11,610,500 24,788,804 4,782,538 2,702,395 43,884,2372011/12 11,219,700 26,789,635 4,641,703 2,928,035 45,579,073

DEBT STATEMENT (As of January 12, 2016 and including the Bonds described herein)

DIRECT DEBTDated Interest AmountDate Purpose Type Spread Maturities Outstanding

06/01/2006 Facilities LTGO 4.10 - 4.50% 05/01/16-26 $11,065,00008/28/2007 Facilities LTGO 4.00 - 4.15 05/01/16-23 3,710,00010/01/2008 Building & Site LTGO 3.50 - 4.50 05/01/16-29 6,435,00002/24/2010 Facilities (BAB)LTGO 4.15 - 6.27 05/01/16-30 1,000,00007/16/2014 Refunding LTGO 2.00 - 4.25 05/01/18-30 9,180,00005/21/2015 Facilities LTGO 3.00 - 3.625 05/01/17-35 9,990,000

TOTAL DIRECT DEBT $41,380,000

Less: Prior Bonds - UTQ ($9,465,000)Plus: 2016 Refunding Bonds - UTQ 9,255,000 ($210,000)

NET DIRECT DEBT $41,170,000OVERLAPPING DEBT

DistrictMunicipality Share City of Jackson $ 38,340,000Townships 19,701,721Villages 8,555,000School Districts 244,334,166Jackson County 31,260,000Intermediate School Districts 771,998

TOTAL OVERLAPPING DEBT $342,962,885 TOTAL DIRECT AND OVERLAPPING DEBT $384,132,885

Source: Municipal Advisory Council of Michigan.

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DEBT RATIOS

Per Capita (160,248)Total Direct Debt $256.91

Total Direct and Overlapping Debt $2,397.12

Ratio to 2015 Taxable Valuation ($4,317,954,029)Total Direct Debt 0.95%Total Direct and Overlapping Debt 8.90%

Ratio to 2015 State Equalized Valuation ($4,985,867,850)Total Direct Debt 0.83%Total Direct and Overlapping Debt 7.70%

Ratio to 2015 Estimated True Cash Valuation ($9,971,735,700)Total Direct Debt 0.41%Total Direct and Overlapping Debt 3.85%

DEBT HISTORY

The College has no record of default.

FUTURE FINANCING

The College does not anticipate additional capital financing in the foreseeable future.

OTHER BORROWING

The College does not have additional short-term borrowing.

LEGAL DEBT MARGIN

Unlimited Tax Debt2015 State Equalized Valuation (1) $4,985,867,850Debt Limit (15% of 2015 State Equalized Valuation) $747,880,177Debt Outstanding, including Bonds described herein 41,170,000

Additional Debt Which Could Be Legally Incurred $706,710,177

Limited Tax Debt

2015 State Equalized Valuation (2) $4,985,867,950Limit for Limited Tax Debt 50,483,678Limited Tax Debt Outstanding, Including the Bonds Described Herein 41,170,000

Additional Limited Tax Debt which could be Legally Incurred $9,313,678

Under Act 331, Public Acts of Michigan, 1966, as amended, the College is subject to the following debt limitations:

(1) Loans and Bonds, including Bonds approved by the qualified electors of the College district, may not be issued in an amount in excess of 15% ofthe SEV of the taxable property of the College district.

(2) Within the foregoing limitation. The College may incur indebtedness that is not greater than 1-1/2% of the first $250,000,000 of SEV of the taxableproperty within the community college district of the College and 1% of the excess over $250,000,000 of SEV of the taxable property within thecommunity college district of the College without a vote of the electors of the College.

(3) Community colleges may enter into installment purchase contracts for real or personal property payable out of the funds of the college provided forthat purpose. The College district has no outstanding installment purchase contracts.

(4) Community colleges may issue revenue bonds to pay for educational facilities. Such revenue bonds would be payable out of the income and revenuesfrom college facilities, or from fees and charges required to be paid by students enrolling in the college. The College district does not have anyoutstanding revenue bonds. However, the College has entered into a long-term lease obligation related to the construction and the ultimate acquisitionof a dormitory building owned by a third party entity. That lease is payable exclusively out of the rental revenues of that building.

(5) Community colleges may finance energy conservation improvements by installment contracts or the issuance of notes. The College district does nothave any outstanding energy conservation improvement debt.

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GENERAL ECONOMIC INFORMATION

LOCATION AND AREA

Jackson College’s boundaries are coterminous with Jackson County. The College is located in the south-centralportion of the State, in the heart of a rich agricultural area. The region contains 100 spring-fed lakes, drawing visitors fromthroughout Michigan and neighboring states. The College has an area of approximately 707 square miles, with the City ofJackson serving as the county seat of Jackson County.

The College is located the following distances from these commercial and industrial areas:

35 miles west of Ann Arbor38 miles south of Lansing42 miles east of Battle Creek65 miles east of Kalamazoo75 miles west of Detroit

POPULATION BY AGE

The 2010 U.S. Census estimated total for population by age for Jackson County are as follows:

Number PercentTotal Population 160,248 100.00%0 through 19 years 42,070 26.2520 through 64 years 95,499 59.6065 years and over 22,679 14.15

Median Age 39.7 years

INCOME

The 2010 U.S. Census estimated total for household income for Jackson County are as follows:

Number PercentHOUSEHOLDS BY INCOME 58,388 100.00%Less than $10,000 6,248 10.70$10,000 to $14,999 3,562 6.10$15,000 to $24,999 8,466 14.50$25,000 to $34,999 5,897 10.10$35,000 to $49,999 8,466 14.50$50,000 to $74,999 11,619 19.90$75,000 to $99,999 6,948 11.90$100,000 to $149,999 5,080 8.70$150,000 to $199,999 1,051 1.80$200,000 or more 1,051 1.80

Median Income $42,862 Mean Income $54,170

Source: www.census.gov

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EMPLOYMENT CHARACTERISTICS*

The following employers located in the College District and surrounding communities offer employmentopportunities.

Approx. No.Employer Product/Service EmployedWithin the College District (200 or more employed)Allegiance Health System Healthcare/hospice 3,146CMS Energy Corp. Oil & natural gas processing 3,000Michigan Department of Corrections Correctional institution 2,040Consumers Energy Natural Gas 2,026Jackson County Government 860Jackson Public Schools Education 782Meijer, Inc. (County-wide) Department stores 755Michigan Automotive Compressor, Inc. Automotive air conditioner compressors 740Wal-Mart/Sam’s Club Retail 598TAC Mfg., Inc. Automotive safety equipment 590Eaton Corp. Hydraulic cylinders 563Jackson County Intermediate School District Education 427Northwest Community Schools Education 409Milsco Michigan Seat Co. Automotive seats 400Spring Arbor University Education 395Dawn Food Products, Inc. Cake, cookie, & doughnut mixes 355MacSteel Steel bars 349Alro Steel Corp. (HQ) Steel service center 325Certaninteed, Inc. Siding & decking materials 300Western School District Education 300Jackson College Higher education 296Tenneco, Inc. Exhaust systems & mufflers 270Wolverine Vinyl Siding Aluminum Siding 250Columbia School District Education 220Napoleon Community Schools Education 220Applegate USA HVAC sheet metal ducts 200General Products Corp. Precision machining 200Jackson Citizen Patriot Newspaper publishing 200

*The approximate number of employees listed above are as reported in the sources indicated below. Because of reporting time lags and other factors

inherent in collecting and reporting such information, the numbers may not reflect recent changes in employment levels, if any.

Source: 2015 Michigan Manufacturers Directory, 2015 Crain’s Book of Lists, Manta Company Intelligence website, the Michigan Economic Development

Council (“MEDC”), and individual employers.

EMPLOYMENT BREAKDOWN

The 2010 U. S. Census reports the occupational breakdown of persons 16 years and over for Jackson Countyare as follows:

Number PercentPERSONS BY OCCUPATION 62,770 100.00%Professional Specialty Occupations 18,783 29.92Service Occupations 13,989 22.29Sales & Office Occupations 14,891 23.72Natural Resources, Construction, and Maintenance Occupations 5,103 8.13Transportation & Material Moving Occupations 10,004 15.94

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The breakdown totals by industry for persons 16 years and over in Jackson County are as follows:

Number PercentPERSONS BY INDUSTRY 62,770 100.00%Agriculture, Forestry, Fishing, Hunting & Mining 314 0.50Construction 3,264 5.20Manufacturing 11,926 19.00Wholesale Trade 1,632 2.60Retail Trade 8,160 13.00Transportation 2,825 4.50Information 1,444 2.30Finance, Insurance, & Real Estate 2,574 4.10Professional & Management Services 4,331 6.90Educational, Health & Social Services 14,437 23.00Arts, Entertainment, Recreation and Food Services 6,716 10.70Other Professional and Related Services 2,574 4.10Public Administration 2,574 4.10

Source: www.census.gov

UNEMPLOYMENT*

The Michigan Department of Technology, Management & Budget Information reports unemployment averagesfor Jackson County as compared to the State of Michigan are as follows:

County of State ofJackson Michigan

2015 Year to Date (November) 4.2% 4.5%2014 Annual Average 7.0 7.22013 Annual Average 8.8 8.82012 Annual Average 8.5 9.12011 Annual Average 10.0 10.4

*not seasonally adjusted

BANKING

The following banks have branches located within the College District. Deposits are as reported in the AccuityAmerican Financial Directory, July - December 2015.

Total State-WideBank Main Office DepositsComerica Bank Dallas, TX N/AJPMorgan Chase Bank, National Association Columbus, OH N/AFifth Third Bank Cincinnati, OH N/AFarmers State Bank of Munith Munith, MI $ 56,280,000Flagstar Bank, FSB Troy, MI 7,310,377,000FirstMerit Bank Akron, OH N/AIndependent Bank Ionia, MI 1,902,088,000Homestead Savings Bank Albion, MI 58,872,000Hillsdale County National Bank Hillsdale, MI 426,732,000Bank of America Charlotte, NC N/APNC Bank Wilmington, DE N/A

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GENERAL COLLEGE INFORMATIONDESCRIPTION

In 1962, voters of Jackson County overwhelming approved the establishment of Jackson College. The College’sdistrict boundaries were defined as coterminous with Jackson County. The vote was to make the existing Jackson JuniorCollege independent from the Union School District of Jackson (now Jackson Public Schools), with which the College hadbeen affiliated since its establishment in 1928. The electorate voted charter millage for the operation of the College Districtin 1964. In July 1965 the College came under the leadership of the Jackson College Board of Trustees.

In the early years, the College offered programs in the arts and sciences; later, technical, occupational and generalprograms were added to the curricula at the 2111 Emmons Road Main Campus.

Development of the main campus in Summit Township began in 1966, and has continued as needs and enrollmentincreased. The College now offers associates degrees in Applied Science, General Studies, Arts and Science. Among themany study programs are courses in accounting, automotive parts management and service technology, aviation technology,corrections, computer processing, diagnostic medical sonography, drafting, electronics, secretarial, finance, hazardousmaterials technology and radiology.

In addition to the main campus on Emmons Road, the College has satellite campuses in downtown Jackson, in theCity of Adrian in Lenawee County, and in the City of Hillsdale in Hillsdale County. The College is the site of satelliteprograms for Siena Heights College and Eastern Michigan University.

MISSION

Jackson College is an institution of higher education whose mission is to assist learners in identifying and achievingtheir educational goals.

VISION

Jackson College is a world-class institution of higher education where learners succeed and community needs aremet.

BOARD OF TRUSTEES

The Board of Trustees consists of seven members who are elected at large for six-year overlapping terms. TheBoard biennially elects a Chair, Vice Chair, Treasurer and Secretary. The Board is responsible for the selection andappointment of the College President and meets as a single body to set or amend policy, develop long range educationalgoals and act upon recommendations of the College President. The Board is also responsible for adopting and periodicallyamending the operating budget and evaluating programs in accordance with governing laws.

ADMINISTRATIVE STAFF

Daniel J. Phelan, Ph.D., PRESIDENT

Dr. Phelan holds degrees from Iowa State University, St. Ambrose University and Mount St. Clair College.

Dr. Phelan joined the College as President in April 2001. He previously held positions as President of SoutheasternCommunity College in West Burlington, Iowa, served as Executive Vice President of Educational andStudent Services at Western Nebraska Community College in Scottsbluff, Nebraska and as ExecutiveDirector of the Business and Industry Institute at Johnson County Community College in Overland Park,Kansas.

Dr. Phelan has served as Chairman of the Business and Industry Network of the League forInnovation in Community Colleges and is Past-President of the National Council for the Study ofCommunity Colleges, an affiliate council of the American Association of Community Colleges. Hepreviously served on the Boards of the National Association of Instructional Administrators and PhiTheta Kappa.

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Dale R. Dopp, VICE PRESIDENT OF FINANCE AND CFO

Dale joined Jackson College in September of 2010 as Director of Development and Assistant Treasurer to theBoard of Directors. On January 2, 2013, Dale was appointed to his current position of Vice President of Finance/CFO andAssistant Treasurer of the Board of Trustees for Jackson College after serving as interim CFO beginning July 2012. In April2013, Dale was appointed to the position of Treasurer of the Board of Directors of Jackson Community College Foundation.As the Chief Financial Officer of Jackson College, Dale serves on the Boards of the Jackson Brownfield RedevelopmentAuthority, the Blackman Charter Township Local Development Finance Authority and the Parma-Sandstone LocalDevelopment Finance Authority.

Prior to Jackson College, Dale joined Albion College as Financial Controller in 1975 coming from the certifiedpublic accounting firm of Hall and Hines based in Jackson, Michigan. In January 1980, he was named Albion CollegeController and Budget Officer and served in that capacity until being named to the President's Cabinet as BusinessManager/Controller in June 1989. In April 1990, he was promoted to the position of Vice President for Finance andManagement, responsible for the financial and administrative functions of Albion College. He served on the Board ofDirectors as Secretary for Colchester Properties, Inc., and on the Board of Directors for Briton Acres, Inc., as VicePresident, Secretary and Treasurer. Both are wholly owned subsidiary corporations of Albion College.

Dale was the primary representative for Albion College to the National Association of College and UniversityBusiness Officers and the Central Association of College and University Business Officers, and actively served oncommittees of the Central Association. From 1990 through 2002, he was a board member on the Advisory Council andBoard of Directors for Educational and Institutional Insurance Administrators, Inc., Chicago, Illinois. He served in thepositions of Vice Chairman of the Advisory Council during my tenure with the Board. Dale graduated from Siena HeightsCollege with a B.A. in 1975 with double majors in Accounting and Business Administration. He undertook graduate studiesat Eastern Michigan University.

Darrell R. Norris, CONTROLLER

Darrell joined Jackson College in June 2004 as a Financial Aid Clerk/Cashier. In July 2013, Darrell was appointedas the Controller after serving the College in various positions including Accounting Services Manager and Director ofAccounting.

As the College Controller, Darrell provides accounting, financial reporting and financial analysis functions alongwith being responsible for the daily financial operation of the College. Darrell also advises the College on development ofpolicies, programs and processes governing financial and accounting operations along with financial statement preparationand budget forecasting.

Darrell earned a certificate in accounting from Jackson College, Bachelors of Business Administration from SienaHeights University and a Masters of Arts in Organizational Management from Spring Arbor University.

COLLEGE DISTRICT ENROLLMENT

Historical Enrollment

The College’s historical per student hour enrollment is as follows:

College Year Hours College Year Hours2015/16 (estimate) 123,500 2010/11 190,0042014/15 126,623 2009/10 160,5202013/14 138,449 2008/09 155,4892012/13 157,582 2007/08 145,6262011/12 181,754 2006/07 134,997

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The College’s historical fiscal year equated students and unduplicated headcount is as follows:

Equated Unduplicated Equated UnduplicatedCollege Year Students Headcount College Year Students Headcount

2015/16 (Estimate) 3,500 7,900 2010/11 5,510 11,0812014/15 3,597 7,923 2009/10 4,800 10,3002013/14 3,783 8,714 2008/09 4,744 10,3152012/13 4,140 8,714 2007/08 4,255 9,6262011/12 4,912 9,858 2006/07 3,898 9,448

EXISTING COLLEGE FACILITIES

Year Type of Assignable GrossBuilding Completed Construction Footage Footage

Potter Center 1979 Masonry 141,294 147,372Justin R. Whiting Hall 1967 Masonry 78,318 88,919Whiting Hall Annex 1968 Masonry 12,853 13,381Campus Services Building 1969 Masonry 10,236 13,545James A. McDivitt Hall 1969 Masonry 62,825 75,426Bert H. Walker Hall 1970 Masonry 47,946 56,820Fieldhouse 1971 Masonry 49,576 55,952Jets Hangar 1977 Masonry 13,500 14,300Child Care Center 1978 Masonry 5,867 5,900Storage Building 1975 Wood 2,235 2,400Pump House 1967 Masonry 900 900Sewage Treatment Facility 1967 -- --- ---Hillsdale Center 1993 Steel 10,400 10,560Wickwire House 1900 Wood 3,400 5,000Dahlem Center 1988 Wood 3,424 3,424Flight Center 1951 Masonry 4,839 5,175JJC-Lenawee VoTech Center 2003 Masonry 25,528 26,872Campus View Apartments 2007 Wood 39,500 42,000William Atkinson Hall 2007 Masonry 47,500 56,920Campus View Apts. II 2009 Wood 39,800 42,000

Leased FacilitiesMaher Campus 2013 Wood 15,000 42,335HLC 2011 Masonry 25,060 42,390Jackson County Airport (Land at Airport)Campus View Apts. III 2015 Wood 50,600 69,500

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OTHER MATTERS

All information contained in this Official Statement is subject, in all respects, to the complete body of informationcontained in the original source thereof and no guaranty, warranty or other representation is made concerning the accuracyor completeness of the information herein. In particular, no opinion or representation is rendered as to whether anyprojection will approximate actual results, and all opinions, estimates and assumptions, whether or not expressly identifiedas such, should not be considered statements of fact.

The College certifies that to its best knowledge and belief, this Official Statement, insofar as it pertains to theCollege and its economic and financial condition, is true and correct as of the date of this Official Statement, and does notcontain, nor omit, any material facts or information which would make the statements contained herein misleading.

JACKSON COLLEGE

/s/Daniel J. Phelan, Ph.D.PRESIDENT

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2015/16REVENUE Adopted

BudgetTuition & Fees $25,125,336Less Institutional Scholarships ($987,000)Net Tuition and Fees 24,138,336

Housing 1,300,000 Property Taxes 4,942,000 State Appropation 12,245,300 Contract Training 59,300 Potter Center Activities 471,000 Miscellaneous 821,200 TOTAL REVENUE 43,977,136 Incoming Transfers & Other Transactions 111,500

TOTAL REVENUE $44,088,636

EXPENDITURES

Wages $17,284,500Retirement 5,096,500Benefits 3,061,000Services 5,404,020Materials 1,690,800Rent, Utilities, Ins 1,934,760Other Operating Cost 3,070,120Transfers 1,983,989Transfers - Walker Hall 741,000Transfers - Debt Service 3,256,758Capital Equipment 565,189TOTAL SERVICES $44,088,636

TOTAL EXPENDITURES $44,088,636 Outgoing Transfers & Other Transactions

TOTAL EXPENDITURES $44,088,636

Revenue Over (Under) Expenditures 0Beginning Fund Balance July 1 42,128,492Ending Fund Balance June 30 42,128,492$

JACKSON COLLEGEGeneral Fund Budget SummaryFor Fiscal Year Ending June 30

APPENDIX A

A-1

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Rehmann Robson

675 Robinson Rd. Jackson, MI 49203 Ph: 517.787.6503 Fx: 517.788.8111 rehmann.com

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INDEPENDENT AUDITORS’ REPORT

November 13, 2015

Board of Trustees Jackson College Jackson, Michigan Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities and the discretely presented component units of Jackson College (the "College") as of and for the years ended June 30, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the College's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Independent Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The financial statements of the discretely presented component units were not audited under Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the discretely presented component units of Jackson College as of June 30, 2015 and 2014, and the respective results of their operations and cash flows, where applicable, for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Implementation of GASB Statement No. 68 As described in Notes 1 and 7, the College implemented the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, in the current year. Accordingly, beginning net position of business-type activities as of July 1, 2014 was restated. Application of this new standard to July 1, 2013, the earliest year presented, is not practical as complete information is not available. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules for the pension plan, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the College's basic financial statements. The supplementary combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audits of the financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued under separate cover, our report dated November 13, 2015, on our consideration of Jackson College's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Jackson College’s internal control over financial reporting and compliance.

AP

PE

ND

IX B

- AU

DIT

B-1

JACKSON COLLEGE

STATEMENTS OF NET POSITION

Assets 2015 2014Current assetsCash and cash equivalents 13,573,849$ 14,371,442$ Restricted cash - unspent bond proceeds 9,851,645 - Tuition and other receivables, net 1,502,308 849,788 State appropriations receivable 2,272,124 2,256,268 Federal and state grants receivable 612,317 2,049,310 Current portion of note receivable 22,027 23,722 Inventories 39,769 39,775 Prepaid expenses and other assets 1,221,163 669,042

Total current assets 29,095,202 20,259,347

Investments 14,291 13,195 Note receivable, net of current portion 86,891 103,834 Campus property, plant and equipment, net 62,822,145 64,067,881

Total assets 92,018,529 84,444,257

Deferred outflows of resourcesDeferred change on refunding 433,578 - Deferred pension amounts (Note 7) 3,948,860 -

Total deferred outflows of resources 4,382,438 -

LiabilitiesCurrent liabilitiesAccounts payable 1,580,607 958,051 Accrued compensation and benefits 2,647,113 2,900,037 Current portion of long-term liabilities 2,016,247 2,350,331 Accrued interest 259,895 225,203 Unearned revenue 2,171,877 2,335,441

Total current liabilities 8,675,739 8,769,063

Noncurrent liabilitiesLong-term liabilities, net of current portion 39,647,012 31,271,390 Net pension liability (Note 7) 31,557,371 -

Total noncurrent liabilities 71,204,383 31,271,390

Total liabilities 79,880,122 40,040,453

Deferred inflows of resourcesDeferred pension amounts (Note 7) 3,488,676 -

Net positionNet investment in capital assets 31,444,109 30,871,276 Restricted: Nonexpendable 22,893 21,548 Expendable 223,949 254,399 Unrestricted (deficit) (Note 9) (18,658,782) 13,256,581

Total net position 13,032,169$ 44,403,804$

June 30,

The accompanying notes are an integral part of these financial statements.

13

JACKSON COLLEGE

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

2015 2014

Operating revenues

Tuition and fees (net of scholarship allowances of $11,476,101 and $11,909,569) 11,453,375$ 10,967,168$

Federal grants and contracts 3,636,923 3,735,464

State grants and contracts 490,101 471,392

Housing revenue 1,315,173 1,136,733

Potter Center activities 468,218 456,414

Contract training 788,424 4,252

Seminars, workshops, and other 1,816,051 1,761,728

Total operating revenues 19,968,265 18,533,151

Operating expenses

Instruction 19,585,427 18,673,872

Public service 1,233,054 1,330,588

Academic support 3,047,545 2,825,129

Student services 7,136,861 6,419,267

Administration 4,891,586 6,063,827

Operation and maintenance of plant 6,448,771 5,202,929

Depreciation and amortization 3,780,624 3,787,548

Total operating expenses 46,123,868 44,303,160

Operating loss (26,155,603) (25,770,009)

Nonoperating revenues (expenses)

State appropriations 13,218,925 12,482,004

Local property taxes 4,842,394 4,782,538

Federal Pell grant revenue 8,922,468 9,556,905

Private gifts and grants 130,887 645,360

Interest income 7,421 5,277

Gain on disposal of property and equipment 44,710 12,466

Interest expense (1,510,802) (1,440,614)

Transfer of Funds to Jackson College Foundation (16,800) (21,600)

Net nonoperating revenues 25,639,203 26,022,336

Other revenues

Capital gifts and grants 175,000 -

(Decrease) increase in net position (341,400) 252,327

Net position, beginning of year 44,403,804 44,151,477

Implementation of GASB 68 (Note 7) (31,030,235) -

Adjusted net position, beginning of the year 13,373,569 44,151,477

Net position, end of year 13,032,169$ 44,403,804$

Year Ended June 30,

The accompanying notes are an integral part of these financial statements.

14

B-2

JACKSON COLLEGE

STATEMENTS OF CASH FLOWS

2015 2014Cash flows from operating activities

Tuition and fees 10,800,855$ 10,689,343$ Housing 1,315,173 1,136,733 Grants and contracts 5,564,017 3,261,912 Contract training 742,764 3,437 Payments to vendors (10,573,220) (7,700,879) Payments to or on behalf of employees (29,775,715) (29,380,193) Payments to students (2,439,859) (2,474,369) Potter Center activities 469,211 518,173 Seminars, workshops and other 1,585,257 1,721,181

Net cash used in operating activities (22,311,517) (22,224,662)

Cash flows from noncapital financing activitiesState appropriations 13,203,069 12,632,977 Local property taxes 4,842,394 4,782,538 Pell grant receipts 8,922,468 9,556,905 Gifts and contributions for other than capital purposes 130,887 645,360 Direct loan program receipts 12,498,697 13,631,289 Direct loan program disbursements (12,498,697) (13,631,289) State scholarship and grant receipts 90,880 85,941 State scholarship and grant disbursements (90,880) (85,941)

Net cash provided by noncapital financing activities 27,098,818 27,617,780

Cash flows from capital and related financing activitiesCapital gift and grant proceeds 175,000 - Purchases and construction of campus property, plant and equipment (2,538,361) (1,107,526) Proceeds from sale of property and equipment 48,183 14,520 Collection of note receivable 18,638 16,944 Proceeds from capital debt 19,345,245 - Principal paid on capital debt (11,737,285) (1,885,000) Interest paid on capital debt (1,476,110) (1,431,376)

Net cash provided by (used in) capital and related financing activities 3,835,310 (4,392,438)

Cash flows from investing activitiesInterest and dividends on investments 6,325 3,312

Net increase in cash and cash equivalents 8,628,936 1,003,992

Cash and cash equivalents, beginning of year 14,371,442 13,367,450

Cash and cash equivalents, end of year 23,000,378$ 14,371,442$

Reconciliation to Statements of Net PositionCash and cash equivalents 13,573,849$ 14,371,442$ Restricted cash - unspent bond proceeds 9,851,645 -

Cash and cash equivalents, end of year 23,425,494$ 14,371,442$

Year Ended June 30,

The accompanying notes are an integral part of these financial statements.

15

JACKSON COLLEGE

STATEMENTS OF CASH FLOWS (Concluded)

2015 2014

Reconciliation of operating loss to net

cash used in operating activities

Operating loss (26,155,603)$ (25,770,009)$

Adjustments to reconcile operating loss to net cash used in operating activities

Depreciation and amortization 3,780,624 3,787,548

Change in operating assets and liabilities that provided (used) cash:

Tuition and other receivables, net (652,520) (277,825)

Federal and state grants receivable 1,436,993 (944,944)

Inventories 6 -

Prepaid expenses and other assets (552,121) 73,936

Accounts payable 605,756 78,440

Accrued compensation and benefits (252,924) 213,354

Long-term liabilities (425,116) (404,138)

Unearned revenue (163,564) 1,018,976

Change in net pension liability and deferred amounts 66,952 -

Net cash used in operating activities (22,311,517)$ (22,224,662)$

Year Ended June 30,

The accompanying notes are an integral part of these financial statements.

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B-3

JACKSON COLLEGE

FOUNDATIONSTATEMENTS OF FINANCIAL POSITION

2015 2014

Cash and cash equivalents 94,465$ 129,411$ Investments 12,550,863 12,498,006 Related party receivable 8,140 37,121 Contributions receivable, net of allowance of $5,000 8,975 110,475 Beneficial interests in remainder trusts 635,458 308,219 Cash surrender value of life insurance 81,000 86,000 Prepaid expenses and other assets - 933

Total assets 13,378,901$ 13,170,165$

LiabilitiesAccounts payable 277,037$ 64,551$ Annuities payable 125,337 128,198

Total liabilities 402,374 192,749

Net assetsUnrestricted 834,802 948,673 Temporarily restricted 2,147,882 2,549,740

Permanently restricted 9,993,843 9,479,003

Total net assets 12,976,527 12,977,416

Total liabilities and net assets 13,378,901$ 13,170,165$

June 30

ASSETS

LIABILITIES AND NET ASSETS

The accompanying notes are an integral part of these financial statements.

17

JACKSON COLLEGE

FOUNDATIONSTATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

2015 2014Support and revenue

Gifts 700,085$ 392,817$ Investment income and gains 75,205 1,521,389 Other revenue 205,088 174,672

Total support and revenue 980,378 2,088,878

Grants and expensesGrant payments to Jackson College 340,570 862,108 Grant payments to the Dahlem

Conservancy 64,136 60,744 Management and general expenses 466,736 528,511

Total grants and expenses 871,442 1,451,363

Support and revenue in excess of grants and expenses 108,936 637,515

Changes in values of interests inremainder trusts and actuarialadjustment of annuities (16,625) 11,633

Transfers from Jackson College 16,800 21,600 Transfers to Jackson Public Schools

Hurst Planetarium (10,000) - Transfers to Jackson Prepatory

& Early College (100,000) (400,000)

(Decrease) increase in net assets (889) 270,748

Net assets, beginning of year 12,977,416 12,706,668

Net assets, end of year 12,976,527$ 12,977,416$

Year Ended June 30

The accompanying notes are an integral part of these financial statements.

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B-4

JACKSON COLLEGE

DORMITORIESSTATEMENT OF FINANCIAL POSITION

June 302015

Restricted cash - unspent bond proceeds 4,103,934$ Deferred bond issuance costs 427,555 Property and equipment 6,227,068

Total assets 10,758,557$

LiabilitiesAccounts payable 730,481$ Accrued interest 109,729 Bond payable 9,929,024

Total liabilities 10,769,234

Net deficitUnrestricted (10,677)

Total liabilities and net deficit 10,758,557$

ASSETS

LIABILITIES AND NET DEFICIT

The accompanying notes are an integral part of these financial statements.

19

JACKSON COLLEGE

DORMITORIESSTATEMENT OF ACTIVITIES AND CHANGES IN NET DEFICIT

Year Ended

June 30, 2015Expenses

Interest 10,677$

Decrease in net assets (10,677)

Net assets, beginning of year -

Net deficit, end of year (10,677)$

The accompanying notes are an integral part of these financial statements.

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B-5

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

21

1. MISSION

Jackson College (the “College”) is a Michigan Community College whose mission is to assist learners in identifying and achieving their educational goals. The College offers four associate degrees, numerous certificate programs, and other educational programs while being accredited by the North Central Association of Colleges and Secondary Schools. The primary education centers for the College are its 500-acre main campus situated six miles south of Jackson, and extension centers located in Hillsdale and Adrian (Lenawee Center).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity The College is governed by an elected seven member board of trustees. The College has two affiliated organizations that are evaluated in accordance with GASB Statement No. 61, The Financial Reporting Entity: Omnibus. These organizations are described below: Jackson College Foundation (the "Foundation") is a legally separate, tax-exempt not-for-profit organization that was formed to solicit, collect, and invest donations made for the promotion of educational activities at and to augment the facilities of the College. The Foundation acts primarily as a fundraising organization to supplement the resources of the College in support of its programs and facilities. As the restricted resources held by the Foundation can be used only by, or for the benefit of, the College, the Foundation is considered a component unit of the College. Jackson College Dormitories (“JCD”) is a legally separate, tax-exempt not-for-profit organization that was formed at beginning of fiscal year 2015 to provide financing for the construction of Campus View 3 to provide 202 additional student housing beds for Jackson College. The College presents the Foundation and JCD as discretely presented component units of the College. Separate financial statements are issued for the Foundation and JCD that are prepared in accordance with the accounting standards established by the Financial Accounting Standards Board. Those separate financial statements may be obtained from the College’s Business Office. Basis of Presentation The accompanying financial statements have been prepared using the economic resource measurement focus and the accrual basis of accounting, whereby revenue is recognized when earned and expenses are recognized when the related liabilities are incurred and certain measurement and matching criteria are met. The College prepares its annual financial statements in accordance with GASB Statement No. 35, Basic Financial Statements - and Management’s Discussion and Analysis - for Public Colleges and Universities, an amendment of GASB Statement No. 34, as described below, and the American Institute of Certified Public Accountants’ Audit and Accounting Guide, Audits of State and Local Governments (GASB 34 Edition). The financial statements also consider the provisions of the Michigan Department of Career Development’s Manual for Uniform Financial Reporting - Michigan Public Community Colleges, 2001.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

22

Under the provisions of GASB Statement No. 35, the College is permitted to report as a special purpose government engaged only in business type activities (“BTA”). Business type activities are those that are financed in whole or in part by fees charged to external users in exchange for goods and services. BTA reporting requires the College to present only the basic financial statements and required supplementary information (RSI) for an enterprise fund that includes management’s discussion and analysis (MD&A), a statement of net position, a statement of revenues, expenses, and changes in net position, a statement of cash flows, notes to the financial statements, and other applicable RSI. Fund financial information is not required for BTA reporting. Use of Estimates The process of preparing financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Actual results may differ from estimated amounts. Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits in banks, cash on hand, money market accounts, and any certificates of deposit with an original maturity of three months or less, except that such investments purchased with endowment assets are classified as investments. On the Statement of Net Position, restricted cash (unspent bond proceeds) is segregated from cash and cash equivalents. For the Statement of Cash Flows, however, restricted cash is included in the beginning and ending balances of cash and cash equivalents. Investments Investments are carried at fair value determined using quoted market prices. The College endowment investment income spending policy is 100% of the realized earnings of each College endowment. The annual spending income allocation cannot reduce the original gift principal. There is no net appreciation on investments of donor-restricted College endowments included in net position at June 30, 2015 or 2014. According to the law of the State of Michigan, the Board of Trustees may appropriate for expenditure for the uses and purposes for which an endowment is established an allocation of the net appreciation, realized and unrealized, in the fair value of the assets of an endowment over the historic dollar value as is prudent under the facts and circumstances prevailing at the time of the action or decision. Inventories Inventories are stated at the lower of cost, determined by the first-in, first-out method, or market. Campus Property, Plant and Equipment Campus property, plant and equipment, consisting of institutional physical properties used in College operations, are recorded at cost or, if acquired by gift, at fair market value at the date of acquisition. Building additions and improvements with a cost in excess of $30,000 are capitalized if the life of the building is extended or square footage is added. Collections, such as works of art, are capitalized if such items are held for public exhibition, education, or research in furtherance of public service. Equipment with a cost in excess of $1,000 with a useful life of more than one year is capitalized. Expenses for routine maintenance and ordinary repairs are expensed as incurred. Library books are expensed the year of purchase. Certain maintenance and replacement reserves have been established to provide for significant repair and maintenance costs to facilities.

B-6

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

23

Depreciation, which includes amortization of leasehold improvements, is provided for campus property, plant and equipment on a straight-line basis over the estimated useful life or the term of the lease, if shorter, of the assets as follows:

Classification Estimated Useful

Lives

Buildings 40 years

Infrastructure and land improvements 15 years Building and leasehold improvements 10 years Artwork 10 years Furniture and fixtures 5 years Computer equipment 3 years

Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to one or more future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The College reports a deferred outflow of resources for its deferred change on bond refunding, which results from the difference in the carrying value of refunded debt and its reacquisition price. This deferred outflow is amortized over the shorter of the refunded or refunding bonds. The College also reports deferred outflows of resources for changes in expected and actual investment returns, changes in assumptions, and certain contributions made to the plan subsequent to the measurement date. More detailed information, including the amortization of these amounts can be found in Note 7. Deferred Inflows of Resources In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to one or more future periods and so will not be recognized as an inflow of resources (revenue) until that time. The College reports deferred inflows of resource for certain pension-related amounts, such as the difference between projected and actual earnings of the pension plan’s investments. More detailed information can be found in Note 7. Pension For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the plan fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

24

Revenue Recognition Revenue from state appropriations are recognized in accordance with the accounting method described in the Manual for Uniform Financial Reporting -- Michigan Public Community Colleges, 2001, which provides that state appropriations are recorded as revenue in the period for which such amounts are appropriated. Student tuition and related revenues and expenses of an academic semester are reported in the fiscal year in which the program is conducted. Property taxes are recorded as revenue when received, which approximates the amounts when levied.

Operating revenues of the College consist of tuition and fees, grants and contracts, sales and services of educational activities and auxiliary enterprise revenues. Transactions related to capital and financing activities, noncapital financing activities, investing activities, State appropriations, property taxes, and Federal Pell grant revenue are components of nonoperating and other revenues. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All expenses not meeting this definition are reported as nonoperating expenses. For financial reporting purposes, restricted resources are deemed to be utilized first when both restricted and unrestricted resources are available to satisfy an expense. Sabbatical Leaves In accordance with the Master Agreement with the Faculty Association, the College grants sabbatical leaves to various full-time instructors. The leaves are granted to enhance the personal and professional competence of the instructors who are required to return to the College for a period of two years. Compensation is accounted for as an expense in the fiscal year the leave is taken. Other Compensated Absences Other compensated absences represent the accumulated liability to be paid under the College’s current vacation and terminated leave pay policies. As the amounts are due on demand at the time of employee termination, the liability is classified as current (accrued payroll, vacation and other compensation) in the accompanying statements of net position. Net Position Net position is classified into the following categories:

Net investment in capital assets: Capital assets, net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construction, or improvement of those assets.

Restricted expendable: Net position whose use by the College is subject to externally

imposed constraints that can be fulfilled by actions of the College pursuant to those constraints or that expire by the passage of time. The restricted balance of the College consists primarily of funds restricted for student loans, scholarships, and other purposes.

Unrestricted: Net position that is not subject to externally imposed constraints.

Unrestricted net position may be designated for specific purposes by action of management or the board of trustees or may otherwise be limited by contractual agreements with outside parties.

B-7

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

25

New Accounting Pronouncement As of July 1, 2014, the College adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions. This statement requires that the College recognize a net pension liability on the statement of net position, equal to the College’s proportionate share of the net pension liability of the Michigan Public School Employees Retirement System (MPSERS), as defined and calculated in accordance with the new standard. More detailed information can be found in Note 7. As a result of this change, the College recognized a net pension liability of $33,570,760 and deferred outflows of resources of $2,540,525, which resulted in a decrease in net position of $31,030,235 as of July 1, 2014. Application of this new standard to July 1, 2013, the earliest year presented, is not practical as complete information is not available.

3. DEPOSITS AND INVESTMENTS

State of Michigan statutes authorize the College to invest in bonds and other direct and certain indirect obligations of the U.S. Treasury; certificates of deposit, savings accounts, deposit accounts, or depository receipts of a bank, savings and loan association, or credit union, which is a member of the Federal Deposit Insurance Corporation, or National Credit Union Administration, respectively; and in commercial paper of corporations located in this state rated prime by at least one of the standard rating services. The College is also authorized to invest in U.S. government or federal agency obligation repurchase agreements, bankers’ acceptances of U.S. banks, and mutual funds comprised of investments as outlined above. The College’s investment policy allows for all of these types of investments. The College’s deposits and investments are included on the statements of net position under the following classifications as of June 30:

2015 2014

Cash and cash equivalents $ 13,573,849 $ 14,371,442 Restricted cash – unspent bond proceeds 9,851,645 - Investments 14,291 13,195 $ 23,439,785 $ 14,384,637

The above amounts are categorized as follows at June 30:

2015 2014

Bank deposits (checking, savings, cash sweep accounts and certificates of deposit) $ 23,424,694 $ 14,370,642 Petty cash 800 800 Total deposits 23,425,494 14,371,442 Investments in equity securities 14,291 13,195 Total $ 23,439,785 $ 14,384,637

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

26

Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the College’s deposits may not be returned. State law does not require and the College does not have a policy for deposit custodial credit risk. As of June 30, 2015, $17,172,892 of the College’s bank deposits balance of $23,969,482 was exposed to custodial credit risk because it was uninsured and uncollateralized. As of June 30, 2014, $3,615,109 of the College’s bank deposits balance of $14,379,306 was exposed to custodial credit risk because it was uninsured and uncollateralized. Custodial Credit Risk – Investments. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the College will not be able to recover the value of its investments that are in the possession of an outside party. State law does not require and the College does not have a policy for investment custodial credit risk. However, all investments are in the name of the College, and the investments are held in trust accounts with each financial institution from which they were purchased.

4. TUITION AND OTHER RECEIVABLES

Tuition and other receivables result from various revenue sources including student tuition and fee billings, auxiliary enterprise sales and contract training revenues. Tuition and other receivables consist of the following amounts at June 30:

2015 2014

Tuition and fees $ 1,354,755 $ 1,173,504 Private grants 3,228 4,116 Reimbursements 102,699 69,112 Due from JC Foundation 262,311 - Due from Jackson Preparatory and Early College 172,416 - Bookstore 2,789 1,747 Employees 4,110 1,309 Total 1,902,308 1,249,788 Less allowances 400,000 400,000 Tuition and other receivables, net $ 1,502,308 $ 849,788

B-8

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

27

Balance, Balance,2015 July 1, 2014 Additions Deletions Transfers June 30, 2015

Capital Assets:Land 1,313,765$ -$ -$ -$ 1,313,765$ Infrastructure and land improvements 3,481,103 90,957 - 140,697 3,712,757 Buildings and improvements 87,449,523 589,369 - - 88,038,892 Leasehold improvements 2,247,106 - - - 2,247,106 Artwork 5,253,400 - - - 5,253,400 Furniture, fixtures and equipment 11,915,697 652,173 551,550 - 12,016,320 Construction in progress 140,697 1,205,862 - (140,697) 1,205,862

Total property and equipment 111,801,291 2,538,361 551,550 - 113,788,102

Less accumulated depreciation 47,733,410 3,780,624 548,077 - 50,965,957

Campus property, plant and equipment, net 64,067,881$ (1,242,263)$ 3,473$ -$ 62,822,145$

Balance, Balance,2014 July 1, 2013 Additions Deletions Transfers June 30, 2014

Capital Assets:Land 1,313,765$ -$ -$ -$ 1,313,765$ Infrastructure and land improvements 3,481,103 - - - 3,481,103 Buildings and improvements 86,883,070 566,453 - - 87,449,523 Leasehold improvements 2,247,106 - - - 2,247,106 Artwork 5,253,400 - - - 5,253,400 Furniture, fixtures and equipment 11,596,676 400,376 81,355 - 11,915,697 Construction in progress - 140,697 - - 140,697

Total property and equipment 110,775,120 1,107,526 81,355 - 111,801,291

Less accumulated depreciation 44,025,163 3,787,548 79,301 - 47,733,410

Campus property, plant and equipment, net 66,749,957$ (2,680,022)$ 2,054$ -$ 64,067,881$

5. CAMPUS PROPERTY, PLANT AND EQUIPMENT, NET

The following tables present in summary fashion the changes in the components of campus property, plant and equipment for the years ended June 30:

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

28

6. LONG-TERM LIABILITIES Long-term liability activity for years ended June 30 was as follows:

Balance

July 1, 2014 Additions Reductions

Balance

June 30, 2015

Current

Portion

2015

Bonds Payable

General Bonds - 2006 11,815,000$ -$ 750,000$ 11,065,000$ 775,000$

General Bonds - 2007 4,085,000 - 375,000 3,710,000 390,000

General Bonds - 2008 6,755,000 - 320,000 6,435,000 335,000

General Bonds - 2010 10,800,000 - 9,800,000 1,000,000 500,000

General Bonds - 2014 - 9,280,000 100,000 9,180,000 -

General Bonds - 2015 - 9,990,000 - 9,990,000 -

Total bonds payable 33,455,000 19,270,000 11,345,000 41,380,000 2,000,000

Bond Premium - 583,255 36,454 546,801 36,454 Bond Discount (258,395) (74,432) (69,285) (263,542) (20,207)

Total Bond Premium/Discount (258,395) 508,823 (32,831) 283,259 16,247

Accrued Employee Severence 425,116 - 425,116 - -

33,621,721$ 19,778,823$ 11,737,285$ 41,663,259 2,016,247$

Less current portion 2,016,247

Long-term liabilities, net of current portion 39,647,012$

Balance

July 1, 2013 Additions Reductions

Balance

June 30, 2014

Current

Portion

2014

Bonds Payable

General Bonds - 2006 12,540,000$ -$ 725,000$ 11,815,000$ 750,000$

General Bonds - 2007 4,440,000 - 355,000 4,085,000 375,000

General Bonds - 2008 7,060,000 - 305,000 6,755,000 320,000

General Bonds - 2010 11,300,000 - 500,000 10,800,000 500,000

Total bonds payable 35,340,000 - 1,885,000 33,455,000 1,945,000

Bond Discount (278,180) - (19,785) (258,395) (19,785)

Accrued Employee Severence 829,252 - 404,136 425,116 425,116

35,891,072$ -$ 2,269,351$ 33,621,721 2,350,331$

Less current portion 2,350,331

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JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

29

Bonded Debt $14,640,000 General Bonds, Series 2006 Unsecured bonds mature serially in annual amounts ranging from $750,000 to $1,240,000 through 2026, with interest charges at rates ranging from 4.00% to 4.50% per annum. $6,000,000 General Bonds, Series 2007 Unsecured bonds mature in annual amounts ranging from $375,000 to $545,000 through 2023 with interest charges at rates ranging from 4.00% to 4.15% per annum. $8,150,000 General Bonds, Series 2008 Unsecured bonds mature in annual amounts ranging from $320,000 to $605,000 through 2029 with interest charges at rates ranging from 3.25% to 4.40% per annum. $1,000,000 General Bonds, Series 2010 Unsecured bonds mature in annual amounts ranging from $500,000 to $1,000,000 through 2017 with interest charges at rates ranging from 1.70% to 6.27% per annum. The bonds are designated as “Build America Bonds” under Section 54AA of Internal Revenue Code. A credit of $31,000 and $199,227 was received during fiscal 2015 and 2014, respectively, from the U.S. Treasury equal to 27.8% of the stated interest paid during fiscal 2015 and 2014, which was recorded as a direct reduction to the College’s interest expense. During 2015, the College refunded $9,300,000 of the Series 2010, “Build America Bond” with an average interest rate of 3.16%. $9,280,000 General Refunding Bonds, Series 2014 The College issued $9,280,000 in refunding bonds with an interest rate of 2.00% to 4.25% to refund $9,300,000 of outstanding 2010 Series Bonds with an interest rate of 4.90% to 6.27%, maturing in 2030. The bonds mature at varying amounts through 2030. The net proceeds of $9,733,578 (after payment of $129,676 in underwriting fees and other issuance cost) were used to purchase U.S. treasury securities which were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the original bonds. The refunding resulted in an economic gain of $370,962 and a net present value savings of $304,771. As of June 30, 2015, the 2010 Series Bonds in the amount of $9,300,000 are considered defeased and the liability has been removed from the statement of net position. $9,990,000 General Bonds, Series 2015 Unsecured bonds mature in annual amounts ranging from $350,000 to $745,000 through 2035 with interest charges at rates ranging from 3.00% to 3.625% per annum.

All borrowings are being repaid out of operating funds.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

30

Scheduled principal and interest requirements of long-term debt for years succeeding June 30, 2015, are summarized below:

Year Ending June 30 Principal Interest Total

2016 2,000,000$ 1,577,320$ 3,577,320$

2017 2,435,000 1,515,421 3,950,421

2018 2,560,000 1,417,083 3,977,083

2019 2,660,000 1,327,071 3,987,071

2020 2,760,000 1,231,946 3,991,946

2021-2025 14,670,000 4,522,897 19,192,897

2026-2030 10,860,000 1,797,798 12,657,798

2031-2035 3,435,000 378,881 3,813,881

Totals 41,380,000$ 13,768,417$ 55,148,417$

During fiscal 2004, the College entered into a lease agreement with the State of Michigan as part of the Capital Outlay program offered by the State Building Authority. The State appropriated approximately $1,500,000 toward the construction of the College’s Lenawee Center. During fiscal 2008, the College entered into a similar lease as part of the construction of the new Atkinson Hall building and the renovation of a section of Whiting Hall. The net State contribution amounted to $7,318,398. Again, in fiscal year 2011, the College entered into another lease with the State of Michigan in connection with the renovation of Whiting Hall and the building of the Health Laboratory Center. The net state contribution amounted to $10,016,314. The appropriations were funded by the issuance of bonds by the State Building Authority. In return, the College has deeded the buildings to the State Building Authority as collateral for the bondholders. The College and the State of Michigan are leasing the buildings from the State Building Authority for the period that the bonds for the buildings are being repaid by the State Building Authority. These lease payments are made out of the State of Michigan general operating budget. The College includes the buildings as part of its total investment in physical plant as capital leases as the College will obtain title to the buildings at the end of the leases. No corresponding obligations have been recorded since there are no payments due by the College under these lease agreements.

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JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

31

Employee Severance Plan The College entered into an employee severance plan to reduce the percentage of top of scale employees and increase the percentage of lower salary employees, while avoiding layoffs and program cuts. The “Employee Severance Plan” was a onetime offer to full-time faculty, administrators, technical, and classified employees who would have twelve (12) or more years of service with Jackson College or will be eligible to retire with full or reduced benefits with the Michigan Public School Employee Retirement System as of June 30, 2012. The College selected Educators Preferred Corporation (EPC) to implement and administer the five (5) year buyout plan. The severance plan was selected by four (4) administrators, nine (9) faculty, and seven (7) technical and classified employees. The College is liable for paying the full cost of the plan over a three (3) year period beginning in 2013. The College made the remaining required payments of $425,116 in 2015.

7. PENSION PLANS

Defined Benefit Plan Plan Description. The College contributes to the Michigan Public School Employees Retirement System (MPSERS), a cost-sharing multi-employer pension plan administered by the State of Michigan Department of Management and Budget, Office of Retirement Services with oversight from a 12-member board. Benefit provisions are established and may be amended by state statute. The Office of Retirement Services issues a publicly available financial report that includes financial statements and required supplementary information for MPSERS. That report may be obtained by writing to Michigan Public School Employees’ Retirement System, 7150 Harris Drive, P.O. Box 30171, Lansing, Michigan, 48909 or by calling (517) 322-5103. Participants are enrolled in one of multiple plans based on date of hire and certain voluntary elections. A summary of the pension plans offered by MPSERS is as follows:

Plan Name Plan Type Plan Status

Member Investment Plan (MIP) Defined Benefit Closed Basic Defined Benefit Closed Pension Plus Hybrid Open Defined Contribution Defined Contribution Open

The Member Investment Plan (MIP) includes additional subgroups based on hire date. The MIP Fixed plan includes members hired prior to January 1, 1990. The MIP Graded plan includes members first hired from January 1, 1990 through June 30, 2008. The MIP Plus plan includes members first hired from July 1, 2008 through June 30, 2010. Members who initially enrolled in the MIP plan and made a voluntary election to contribute a higher rate are participants in the MIP 7% plan.

Members hired between July 1, 2010 and September 3, 2012 were enrolled in the Pension Plus plan. Members hired on or after September 4, 2012 are automatically enrolled in this plan unless an election is made to participate in the defined contribution plan. The plan includes a pension component as well as a savings component. Member contributions to the savings component are match at a rate of 50% by the employer (up to a maximum of 1%) and invested in a 401(k) plan.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

32

Effective February 1, 2013, members that initially enrolled in MIP were provided the option to convert to a defined contribution plan (Basic 4%). In these instances, any service credit accumulated under the defined benefit plan before February 1, 2013 is retained. For service performed after this date, the converted plan member receives 4% employer contributions to a personal 401(k) account. A member first enrolling in MPSERS on or after September 4, 2012 may elect to enroll in the defined contribution plan. Employer and employee contribution rates and vesting requirements are consistent with the defined contribution component of the Pension Plus plan as described above. Benefits Provided. MPSERS provides retirement, death, disability and postemployment benefits to eligible participants. Retirement benefits are calculated as a percentage of the employee's final average compensation times the employee's years of service. All participants qualify for a benefit multiplier of 1.5% for the first 30 years of service. Certain benefit groups receive a reduced rate of 1.25% for service above 30 years. Disability benefits are calculated the same as regular service retirement. Participants are eligible to receive full retirement benefits upon reaching the age and years of service requirements below. Most plans offer additional options for early retirement if certain stipulations have been met. Voluntary contributions vest immediately.

Plan Eligibility Based on Years of Service Vesting

Member Investment Plan (MIP) Age 46 with 30 years or age 60 with 10 years 10 years Basic Age 55 with 30 years or age 60 with 10 years 10 years Pension Plus Age 60 with 10 years 4 years Defined Contribution Age 46 with 30 years or age 60 with 10 years 4 years

Contributions. Employer contributions to the plans are based on a percentage of covered payroll that has been actuarially determined as an amount that, when combined with employee contributions, is expected to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Member contributions are determined based on date of hire and the plan selected. In addition, the College is invoiced monthly an amount that approximates 7.63% of covered payroll for "MPSERS UAAL Stabilization." This additional contribution is offset by monthly State aid payments equal to the amounts actually billed by the Office of Retirement Services. For the year ended June 30, 2015, an additional 1.13% MPSERS liability prepayment was invoiced as a one-time cost. Employer contribution requirements for pension, inclusive of the MPSERS UAAL Stabilization and one-time prepayment rates, range from 27.52% to 31.83% of covered payroll. Plan member contributions range from 0.0% to 7.0% of covered payroll. The College’s contributions to MPSERS for all pension plans described above were $3,135,547 for the year ended June 30, 2015. The College’s contributions to MPSERS for all plans, including other postemployment benefits as described on pages 35 and 36, for the years ended June 30, 2014 and 2013 were $3,802,000 and $3,704,000, respectively. These amounts are equal to the College’s required contributions for each year.

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JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

33

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the College reported a liability of $31,557,371 for its proportionate share of the net pension liability. The net pension liability was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation rolled forward from September 30, 2013. The College’s proportion of the net pension liability was based on a projection of the College’s long-term share of contributions to the pension plan relative to the projected contributions of all participating school districts, actuarially determined. At September 30, 2014, the College’s proportion (as calculated by MPSERS) was 0.14327%. For the year ended June 30, 2015, the College’s proportionate share of pension expense was $2,556,250. At June 30, 2015, the College reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

2015

Deferred

Outflows of Resources

Deferred Inflows of Resources

Net Deferred Outflows

(Inflows) of Resources

Changes in assumptions $ 1,164,398 $ - $ 1,164,398 Net difference between projected and actual earnings on pension plan investments - 3,488,676 (3,488,676) 1,164,398 3,488,676 (2,324,278) College contributions subsequent to the measurement date 2,784,462 - 2,784,462 Total $ 3,948,860 $ 3,488,676 $ 460,184

The amount of deferred outflows of resources related to College contributions subsequent to the measurement date will be recognized as a reduction in the net pension liability for the year ending June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pensions will be recognized in pension expense as follows:

Year Ended June 30

Amount

2016 $ (569,372) 2017 (569,372) 2018 (569,372) 2019 (616,162)

Total $ (2,324,278)

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

34

Actuarial Assumptions. The total pension liability in the September 30, 2013 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Wage inflation 3.5% Salary increases 3.5% to 12.3%, including wage inflation at 3.5% Investment rate of return 8% (7% for the Pension Plus plan), net of pension

plan investment expense, including inflation Cost of living adjustments 3.0% annual, non-compounded for MIP members Healthcare cost trend rate 8.5% year 1 graded to 3.5% year 12

The mortality table used in this valuation was the RP-2000 Male and Female Combined Healthy Life Mortality Tables, adjusted for mortality improvements to 2025 using projection scale BB. For retirees, 100% of the table rates were used. For active members, 80% of the table rates were used for males and 70% of the table rates were used for females.

Assumption changes as a result of an experience study for the periods 2007 through 2012 have

been adopted by the System for use in the annual pension valuations beginning with the September 30, 2014 valuation. The long-term expected rate of return on pension plan investments was determined using a building-block method in which the best-estimate of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

Target Allocation

Long-Term Expected Real Rate of Return

Expected Money-

Weighted Rate of Return

Domestic equity pools 28.00 % 4.80 % 1.34 % Alternative investment pools 18.00 8.50 1.53 International equity 16.00 6.10 0.98 Fixed income pools 10.50 1.50 0.16 Real estate and infrastructure pools 10.00 5.30 0.53 Absolute return pools 15.50 6.30 0.98 Short-term investment pools 2.00 -0.20 -0.02

5.50 % 100.00 % Inflation 2.50 Investment rate of return 8.00 %

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JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

35

Discount Rate. The discount rate used to measure the total pension liability is 8.0%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that College contributions will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the College, calculated using the discount rate of 8.0%, as well as what the College’s net pension liability would be if it were calculated using a discount rate that is 1% lower (7.0%) or 1% higher (9.0%) than the current rate:

1% Decrease

(7.0%)

Current Discount Rate

(8.0%)

1% Increase

(9.0%)

College’s proportionate share of net pension liability $ 41,605,596 $ 31,557,371 $ 23,091,524 Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net

position is available in the separately issued MPSERS financial statements available on the State of Michigan Office of Retirement Services website at www.michigan.gov/orsschools. Payable to the Pension Plan. At June 30, 2015, the College reported a payable of $212,120 for the outstanding amount of pension contributions to the Plan required for the year ended June 30, 2015. Other Postemployment Benefits Retirees enrolled in MPSERS before September 4, 2012 have the option of participating in the Premium Subsidy plan, a defined benefit postemployment healthcare plan, which is funded by employers on a cash disbursement basis. The State of Michigan has contracted to provide the comprehensive group medical, hearing, dental and vision coverage for retirees and beneficiaries. All health care benefits are on a self-funded basis. A significant portion of the premium is paid by MPSERS with the balance deducted from the monthly pension. Employer contributions range from 2.20% to 2.71% of covered payroll. Plan participants contribute 3% of covered payroll to the Retiree Healthcare Fund. At retirement, these individuals receive a subsidy for healthcare premiums that covers up to 80% of cost. Plan members enrolled on or after September 4, 2012 participate in the Personal Healthcare Fund. This defined contribution other postemployment benefits plan includes a required 2% employee contribution into a personal tax-deferred account, which is matched by an additional 2% employer contribution. Employees are fully vested in these contributions which can be used, along with earnings thereon, to pay for postemployment healthcare expenses. Plan members working prior to September 4, 2012 were given the option to convert from the Premium Subsidy plan to the Personal Healthcare Fund option. Effective February 1, 2013, these members are no longer required to make the 3% employee contribution. Amounts paid into the Retiree Healthcare Fund between September 4, 2012 and February 1, 2013 were credited to each individual’s Personal Healthcare Fund account. Any contributions made prior to September 4, 2012 are pending a Supreme Court resolution.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

36

The College’s contributions to MPSERS for other postemployment benefits were $317,227 for the year ended June 30, 2015.

Defined Contribution Plan Effective July 1, 1996, the College established the Jackson College Optional Retirement Program (“JCCORP”), a defined contribution pension plan qualified under Section 414(d) of the Internal Revenue Code. Under this plan, eligible employees as of July 1, 1996 and who are members of MPSERS, may continue their membership in MPSERS or may elect to participate in the plan and retain limited membership in the retirement system. An employee becoming eligible after July 1, 1996 may elect to become a member of MPSERS or to participate in JCCORP. Benefit provisions and contribution requirements are established and may be amended by the College. Required contributions are made by the College and the participants at a rate of 14% and 4% of eligible compensation for Staff and Faculty, respectively, and 15% and 4% of eligible compensation for Administration, respectively. For the years ended June 30, 2015 and 2014, the cost of this plan to the College was approximately $903,000 and $847,000 and participant contributions in the form of payroll deductions were approximately $283,000 and $286,000, respectively.

8. RELATED PARTIES

Jackson College Foundation The College employs all Foundation staff and charges the Foundation an allocation percentage to cover a portion of such personnel costs, as well as other Foundation related costs by the College. In addition, the College received payments from the Foundation for student scholarships and other support, including capital gifts, totaling $340,570 and $862,108 for the years ended June 30, 2015 and 2014, respectively. At June 30, 2015, the College reported a receivable of $262,331 from the Foundation. The College entered a lease agreement with the Foundation on July 1, 2012 related to its W. J. Maher Campus building. The Foundation charged the College $150,000 and $125,000 in rent for fiscal 2015 and 2014, respectively. Dahlem Environmental Center In August 2005, the College spun off its Dahlem Environmental Center (the “Center”) operations by entering into an agreement with The Dahlem Conservancy (the “Conservancy”), an independent, nonprofit organization, and the private donor of the Center’s property. Under this agreement, the College leases the Center’s property to the Conservancy for a term of 30 years at an annual amount of $1. The agreement also states that any endowment gifts received for the benefit of the Center will be restricted support of the Foundation, and the Foundation annually distribute 5% of the total endowment funds held for the benefit of the Center to the Conservancy in quarterly installments. Jackson College Dormitories In August 2014, the College created Jackson College Dormitories (JCD), a separate tax exempt corporation following IRS code 501(c)(3). The creation of JCD was solely to finance and construct Campus View 3. Beginning during the Fall 2015 semester, the College collects and distributes rents for/to JCD and provides management, utilities and cleaning of the building. In 2015, the College purchased the architectural drawings of the building in the amount of $400,000 and made a deposit on furniture for JCD’s suites in the amount of $502,500. Other During the year ended June 30, 2015, the College paid a Foundation board member approximately $77,000 for architect services.

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JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

37

9. UNRESTRICTED (DEFICIT) NET POSITION

The College, through Board of Trustees action via the budget process, has designated the use of unrestricted net (deficit) position for the following purposes at June 30:

2015 2014

Major maintenance and equipment replacement $ 6,048,203 $ 7,111,101 Future operations 5,690,660 5,446,740 Total designated 11,738,863 12,557,841 Pension liability fund deficit (31,097,187) - Undesignated 699,542 698,740 Total unrestricted net (deficit) position $(18,658,782) $ 13,256,581

10. RISK MANAGEMENT

The College is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the years ended June 30, 2015 and 2014, the College carried commercial insurance to cover all risks of losses. The College has had no settled claims resulting from these risks that exceeded its commercial coverage limits in any of the past three fiscal years.

11. COMMITMENTS, UNCERTAINTIES AND OTHER MATTERS

Government Programs The College conducts certain programs pursuant to grants and contracts funded, and subject to audit, by various federal and state agencies. Amounts questioned as a result of audits, if any, may result in refunds to these governmental agencies. Any liabilities for reimbursements which may arise as the result of these audits is not believed to be material. Employment Contract The College is obligated pursuant to the terms of the College President’s employment contract to provide housing in which the President is required to reside, maintain the buildings and grounds and pay all utilities furnished for the President’s residential housing, annually reimburse certain expenses connected with the Office of the President, and annually provide an agreed upon amount of deferred compensation payable upon termination of the President’s tenure. The President’s employment agreement is currently scheduled to expire on August 31, 2020. Construction Commitment The construction project to renovate the Hanger Activity Center was completed in September 2015. Additional costs incurred subsequent to June 30, 2015 were approximately $265,000. The construction project to renovate the Bert Walker Hall is estimated to be completed in August 2016. Additional costs estimated to complete are approximately $795,000.

JACKSON COLLEGE NOTES TO FINANCIAL STATEMENTS

38

Other Matters The College may be subject to various legal proceedings and claims which arise in the ordinary course of its business. The College believes that the amount, if any, of ultimate liability with respect to legal actions will be immaterial.

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REQUIRED SUPPLEMENTARY INFORMATION

MPSERS COST-SHARING MULTIPLE-EMPLOYER PLAN

JACKSON COLLEGE

SCHEDULE OF THE COLLEGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITYYEAR ENDED JUNE 30, 2015

College's proportion of the net pension liability 0.14327%

College's proportionate share of the net pension liability 31,557,371$

College's covered-employee payroll 12,661,497$

College's proportionate share of the net pension liability as a percentageof its covered-employee payroll 249.24%

Plan fiduciary net position as a percentage of the total pension liability 66.20%

The amounts presented for the fiscal year were determined as of September 30 of the preceding year.

Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately, 10 years of data will be presented.

39

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JACKSON COLLEGE

SCHEDULE OF COLLEGE CONTRIBUTIONSYEAR ENDED JUNE 30, 2015

Contractually required contribution 3,135,547$

Contributions in relation to the contractually required contribution (3,135,547)

Contribution deficiency (excess) -$

College's covered-employee payroll 11,858,371$

Contributions as a percentage of covered employee payroll 26.44%

Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately, 10 years of data will be presented.

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FORM OF CONTINUING DISCLOSURE AGREEMENT

$9,255,000 JACKSON COLLEGE

STATE OF MICHIGAN 2016 REFUNDING BONDS

(GENERAL OBLIGATION - LIMITED TAX)

This Continuing Disclosure Agreement (the "Agreement") is executed and delivered by Jackson College, State of Michigan (the "Issuer"), in connection with the issuance of $9,255,000 2016 Refunding Bonds (General Obligation - Limited Tax) (the "Bonds"). The Bonds are being issued pursuant to resolutions adopted by the Board of Trustees of the Issuer on November 9, 2015 and January 11, 2016 (together, the "Resolution"). The Issuer covenants and agrees as follows:

SECTION 1. Purpose of the Disclosure Agreement. This Agreement is being executed and delivered by the Issuer for the benefit of the Bondholders and in order to assist the Participating Underwriters in complying with the Rule. The Issuer acknowledges that this Agreement does not address the scope of any application of Rule 10b-5 promulgated by the SEC pursuant to the 1934 Act to the Annual Reports or notices of the Listed Events provided or required to be provided by the Issuer pursuant to this Agreement.

SECTION 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

"Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Agreement.

"Bondholder" means the registered owner of a Bond or any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including any person holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bond for federal income tax purposes.

"Dissemination Agent" means any agent designated as such in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation, and such agent's successors and assigns.

"EMMA" shall mean the MSRB's Electronic Municipal Market Access which provides continuing disclosure services for the receipt and public availability of continuing disclosure documents and related information required by Rule 15c2-12 promulgated by the SEC.

"Listed Events" shall mean any of the events listed in Section 5(a) of this Agreement.

"MSRB" shall mean the Municipal Securities Rulemaking Board.

"1934 Act" shall mean the Securities Exchange Act of 1934, as amended.

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APPENDIX C - FORM OF CONTINUING DISCLOSURE AGREEMENT

"Official Statement" shall mean the final Official Statement for the Bonds dated January 11, 2016.

"Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with the offering of the Bonds.

"Resolution" shall mean the resolutions duly adopted by the Issuer authorizing the issuance, sale and delivery of the Bonds.

"Rule" shall mean Rule 15c2-12 promulgated by the SEC pursuant to the 1934 Act, as the same may be amended from time to time.

"SEC" shall mean the Securities and Exchange Commission.

"State" shall mean the State of Michigan.

"State Repository" shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the SEC. Currently, the following is the State Repository:

Municipal Advisory Council of Michigan Buhl Building 535 Griswold, Suite 1850 Detroit, Michigan 48226 Tel: (313) 963-0420 Fax: (313) 963-0943 E-Mail: mac@macmi.com

SECTION 3. Provision of Annual Reports.

(a) Each year, the Issuer shall provide, or shall cause the Dissemination Agent to provide, on or prior to the 180th day after the end of the fiscal year of the Issuer commencing with the fiscal year ending June 30, 2016, to EMMA and the State Repository an Annual Report for the preceding fiscal year which is consistent with the requirements of Section 4 of this Agreement. Currently, the Issuer's fiscal year ends on June 30. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by specific reference other information as provided in Section 4 of this Agreement; provided, however, that if the audited financial statements of the Issuer are not available by the deadline for filing the Annual Report, they shall be provided when and if available, and unaudited financial statements in a format similar to the financial statements contained in the Official Statement shall be included in the Annual Report.

(b) The Annual Report shall be submitted to EMMA either through a web-based electronic submission interface or through electronic computer-to-computer data connections with EMMA in accordance with the submission process, document format and configuration requirements established by the MSRB. The Annual Report shall also include all related information required by MSRB to accurately identify: (i) the category of information being provided; (ii) the period covered by the Annual Report; (iii) the issues or specific securities to which the Annual Report is related (including CUSIP number, Issuer name, state, issue

C-2

description/securities name, dated date, maturity date, and/or coupon rate); (iv) the name of any obligated person other than the Issuer; (v) the name and date of the document; and (vi) contact information for the Dissemination Agent or the Issuer's submitter.

(c) If the Issuer is unable to provide to EMMA an Annual Report by the date required in subsection (a), the Issuer shall send a notice in a timely manner to the MSRB and to the State Repository in substantially the form attached as Appendix A.

(d) If the Issuer's fiscal year changes, the Issuer shall send a notice of such change to the MSRB and to the State Repository in substantially the form attached as Appendix B. If such change will result in the Issuer's fiscal year ending on a date later than the ending date prior to such change, the Issuer shall provide notice of such change to the MSRB and to the State Repository on or prior to the deadline for filing the Annual Report in effect when the Issuer operated under its prior fiscal year. Such notice may be provided to the MSRB and to the State Repository along with the Annual Report, provided that it is filed at or prior to the deadline described above.

SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain or include by reference the following:

(a) audited financial statements of the Issuer prepared pursuant to State laws, administrative rules and guidelines and pursuant to accounting and reporting policies conforming in all material respects to generally accepted accounting principles as applicable to governmental units as such principles are prescribed, in part, by the Financial Accounting Standards Board and modified by the Government Accounting Standards Board and in effect from time to time; and

(b) additional annual financial information and operating data as set forth in the Official Statement under "CONTINUING DISCLOSURE".

Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which previously have been provided to each of the Repositories or filed with the SEC. If the document included by specific reference is a final official statement, it must be available from the MSRB. The Issuer shall clearly identify each such other document so included by reference.

SECTION 5. Reporting of Significant Events.

(a) The Issuer covenants to provide, or cause to be provided, notice in a timely manner not in excess of ten business days of the occurrence of any of the following events with respect to the Bonds in accordance with the Rule:

(1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial

difficulties; (4) unscheduled draws on credit enhancements reflecting financial

difficulties; (5) substitution of credit or liquidity providers, or their failure to

perform;

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(6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security;

(7) modifications to rights of security holders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the

securities, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the

obligated person; (13) the consummation of a merger, consolidation, or acquisition

involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;

(14) appointment of a successor or additional trustee or the change of name of a trustee, if material.

(b) Whenever the Issuer obtains knowledge of the occurrence of a Listed Event, the Issuer shall as soon as possible determine if such event would constitute material information for the Bondholders, provided, that any event other than those listed under Section 5(a)(1), (3), (4), (5), (9), (11) (only with respect to any change in any rating on the Bonds) or (12) above will always be deemed to be material. Events listed under Section 5(a)(6) and (8) above will always be deemed to be material except with respect to that portion of those events which must be determined to be material.

(c) The Issuer shall promptly cause a notice of the occurrence of a Listed Event, determined to be material in accordance with the Rule, to be electronically filed with EMMA and with the State Repository together with a significant event notice cover sheet substantially in the form attached as Appendix C. In connection with providing a notice of the occurrence of a Listed Event described in Section 5(a)(9) above, the Issuer shall include in the notice explicit disclosure as to whether the Bonds have been escrowed to maturity or escrowed to call, as well as appropriate disclosure of the timing of maturity or call.

(d) The Issuer acknowledges that the "rating changes" referred to above in Section 5(a)(11) of this Agreement may include, without limitation, any change in any rating on the Bonds or other indebtedness for which the Issuer is liable.

(e) The Issuer acknowledges that it is not required to provide a notice of a Listed Event with respect to credit enhancement when the credit enhancement is added after the primary offering of the Bonds, the Issuer does not apply for or participate in obtaining such credit enhancement, and such credit enhancement is not described in the Official Statement.

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SECTION 6. Termination of Reporting Obligation.

(a) The Issuer's obligations under this Agreement shall terminate upon the legal defeasance of the Resolution or the prior redemption or payment in full of all of the Bonds.

(b) This Agreement, or any provision hereof, shall be null and void in the event that the Issuer (i) receives an opinion of nationally recognized bond counsel, addressed to the Issuer, to the effect that those portions of the Rule, which require such provisions of this Agreement, do not or no longer apply to the Bonds, whether because such portions of the Rule are invalid, have been repealed, amended or modified, or are otherwise deemed to be inapplicable to the Bonds, as shall be specified in such opinion, and (ii) delivers notice to such effect to the MSRB, and to the State Repository, if any.

SECTION 7. Dissemination Agent. The Issuer, from time to time, may appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent.

SECTION 8. Amendment. Notwithstanding any other provision of this Agreement, this Agreement may be amended, and any provision of this Agreement may be waived to the effect that:

(a) such amendment or waiver is made in connection with a change in circumstances that arises from a change in legal requirements, a change in law or a change in the identity, nature or status of the Issuer, or the types of business in which the Issuer is engaged;

(b) this Agreement as so amended or taking into account such waiver, would have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances, in the opinion of independent legal counsel; and

(c) such amendment or waiver does not materially impair the interests of the Bondholders, in the opinion of independent legal counsel.

If the amendment or waiver results in a change to the annual financial information required to be included in the Annual Report pursuant to Section 4 of this Agreement, the first Annual Report that contains the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of such change in the type of operating data or financial information being provided. If the amendment or waiver involves a change in the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared based on the new accounting principles and those prepared based on the former accounting principles. The comparison should include a qualitative discussion of such differences and the impact of the changes on the presentation of the financial information. To the extent reasonably feasible, the comparison should also be quantitative. A notice of the change in the accounting principles should be sent by the Issuer to the MSRB and to the State Repository. Further, if the annual financial information required to be provided in the Annual Report can no longer be generated because the operations to which it related have been

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materially changed or discontinued, a statement to that effect shall be included in the first Annual Report that does not include such information.

SECTION 9. Additional Information. Nothing in this Agreement shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Agreement. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Agreement, the Issuer shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

SECTION 10. Default. In the event of a failure of the Issuer to comply with any provision of this Agreement, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Agreement. A default under this Agreement shall not be deemed an Event of Default under the Resolution or the Bonds, and the sole remedy under this Agreement in the event of any failure of the Issuer to comply with the Agreement shall be an action to compel performance.

SECTION 11. Duties of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Agreement.

SECTION 12. Beneficiaries. This Agreement shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriters, and the Bondholders and shall create no rights in any other person or entity.

SECTION 13. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State, and any suits and actions arising out of this Agreement shall be instituted in a court of competent jurisdiction in the State. Notwithstanding the foregoing, to the extent this Agreement addresses matters of federal securities laws, including the Rule, this Agreement shall be construed and interpreted in accordance with such federal securities laws and official interpretations thereof.

JACKSON COLLEGE STATE OF MICHIGAN

By: _________________________________ Its: President

Dated: February 3, 2016

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APPENDIX A

NOTICE TO THE MSRB AND TO THE STATE REPOSITORY OF FAILURE TO FILE ANNUAL REPORT

Name of Issuer: Jackson College, Michigan

Name of Bond Issue: 2016 Refunding Bonds (General Obligation - Limited Tax)

Date of Bonds: February 3, 2016

NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by Section 3 of its Continuing Disclosure Agreement with respect to the Bonds. The Issuer anticipates that the Annual Report will be filed by _____________.

JACKSON COLLEGE STATE OF MICHIGAN

By: _________________________________ Its: President

Dated: _______________________

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APPENDIX B

NOTICE TO THE MSRB AND THE STATE REPOSITORY OF CHANGE IN ISSUER'S FISCAL YEAR

Name of Issuer: Jackson College, Michigan

Name of Bond Issue: 2016 Refunding Bonds (General Obligation - Limited Tax)

Date of Bonds: February 3, 2016

NOTICE IS HEREBY GIVEN that the Issuer's fiscal year has changed. Previously, the Issuer's fiscal year ended on ______________. It now ends on _________________.

JACKSON COLLEGE STATE OF MICHIGAN

By: _________________________________ Its: President

Dated:

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APPENDIX C

SIGNIFICANT EVENT NOTICE COVER SHEET

This cover sheet and significant event notice should be provided in an electronic format to the Municipal Securities Rulemaking Board and the State Repository pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D).

Issuer's and/or other Obligated Person's Name:

Issuer's Six-Digit CUSIP Number(s):

or Nine-Digit CUSIP Number(s) to which this significant event notice relates:

Number of pages of attached significant event notice:

Description of Significant Events Notice (Check One):

1. Principal and interest payment delinquencies 2. Non-payment related defaults 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final

determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security

7. Modifications to rights of security holders 8. Bond calls 9. Tender offers 10. Defeasances 11. Release, substitution, or sale of property securing repayment of the securities 12. Rating changes 13. Bankruptcy, insolvency, receivership or similar event of the obligated person 14. The consummation of a merger, consolidation, or acquisition involving an obligated person or the

sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms

15. Appointment of a successor or additional trustee or the change of name of a trustee 16. Other significant event notice (specify)

I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly:

Signature:

Name: Title:

Employer:

Address:

City, State, Zip Code:

Voice Telephone Number: ( )

The MSRB Gateway is www.msrb.org or through the EMMA portal at emma.msrb.org/submission/ Submission_Portal.aspx. Contact the MSRB at (703) 797-6600 with questions regarding this form or the dissemination of this notice. The cover sheet and notice may also be faxed to the MAC at (313) 963-0943.

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[THIS PAGE INTENTIONALLY LEFT BLANK]

U.S. Mail Address:P.O. BOX 2575

EAST LANSING, MI 48826-6386PHONE: (517) 484-8000

FAX: (517) 484-0041FAX: (517) 484-0081

ALL OTHER SHIPPING:2900 WEST ROAD, SUITE 400

EAST LANSING, MI 48823-6386

MICHAEL B. FARRELL ROBERT G. HUBER MATTHEW F. HISER BRANDON C. WALKER KEVIN S. HARTY (OF COUNSEL)

GORDON W. VAN WIEREN, JR. MICHAEL D. GRESENS KARI K. SHAY FREDRIC G. HEIDEMANN Traverse City

BEVERLY J. BONNING CHRISTOPHER J. IAMARINO ROBERT A. DIETZEL DANIEL R. MARTIN ROBERT J. ROBINSON (OF COUNSEL)

MARTHA J. MARCERO RAYMOND M. DAVIS ERIC D. DELAPORTE KATHERINE WOLF BROADDUS

LISA L. SWEM MICHELE R. EADDY DAVID M. REVORE TIMOTHY T. GARDNER, JR.

JEFFREY J. SOLES KIRK C. HERALD JENNIFER K. JOHNSTON PHILIP G. CLARK

ROY H. HENLEY MARGARET M. HACKETT RYAN J. NICHOLSON

East Lansing • Novi • West Michigan

DRAFT LEGAL OPINION

Jackson College State of Michigan

We have acted as legal counsel in connection with the issuance by Jackson College, State of Michigan (the "Issuer"), of bonds in the aggregate principal amount of $9,255,000 designated 2016 Refunding Bonds (General Obligation - Limited Tax) (the "Bonds").

The Bonds are in fully registered form and issued without coupons.

The Bonds are dated February 3, 2016, are not subject to redemption prior to maturity, are of $5,000 denomination or any integral multiple thereof, mature serially on May 1 of each year, and bear interest payable on May 1, 2016, and semiannually thereafter on November 1 and May 1 of each year in the amounts and rates as follows:

Year Amount Rate Year Amount Rate 2017 $ 75,000 2.00% 2022 $1,015,000 2.00% 2018 940,000 2.00 2023 1,040,000 2.00 2019 960,000 2.00 2024 1,060,000 2.00 2020 980,000 2.00 2025 1,080,000 3.00 2021 995,000 2.00 2026 1,110,000 3.00

We have examined the documents which we deem authentic and pertinent to the validity of the Bonds, including the certified record evidencing the authorization of the Bonds by the board of trustees of the Issuer, a copy of the approval of the Department of Treasury of the State of Michigan to issue the Bonds, and a specimen of the Bond certificates.

Based upon the foregoing, we are of the opinion that under existing law:

(1) the Bonds have been lawfully authorized and issued and are enforceable obligations of the Issuer in accordance with their terms;

(2) the Bonds are the limited tax general obligation of the Issuer for which its full faith, credit and resources have been irrevocably pledged;

(3) the Issuer has the power, has pledged and is obligated to levy taxes within its authorized millage rate on all taxable property now situated within the corporate boundaries of the Issuer in an amount sufficient to pay the principal of and interest on the Bonds, taking into account other available funds, but the Issuer does not have the power to levy taxes for the payment of the Bonds in excess of its constitutional, statutory and charter tax rate limitations;

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APPENDIX D - DRAFT LEGAL OPINION

Jackson College State of Michigan ___________, 2016 Page 2

(4) if tax collections are insufficient to pay the principal of and interest on the Bonds when due, the Issuer has pledged and is obligated to use any and all other resources available for payment of the Bonds;

(5) the Issuer has designated the Bonds as "qualified tax-exempt obligations" within the meaning of the Internal Revenue Code of 1986, as amended;

(6) the Bonds and the interest thereon are exempt from all taxation in the State of Michigan, except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof; and

(7) the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that certain corporations must take into account interest on the Bonds in determining adjusted net current earnings for the purpose of computing the alternative minimum tax imposed on such corporations. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds.

The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement of such rights may also be subject to the exercise of judicial discretion in appropriate cases.

THRUN LAW FIRM, P.C.

TLF/CJI

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OPTIONAL DTC BOOK-ENTRY-ONLY

FORM OF OFFICIAL NOTICE OF SALE

$9,495,000 JACKSON COLLEGE

STATE OF MICHIGAN 2016 REFUNDING BONDS

(GENERAL OBLIGATION - LIMITED TAX)

BIDS for the purchase of the above 2016 Refunding Bonds (the "Bond" or "Bonds") will be received by Jackson College, Michigan (the "Issuer"), at the Issuer's administrative offices located at 2111 Emmons Road, Jackson, Michigan, 49201, on Monday, the 11th day of January, 2016, until 11:30 o'clock in the a.m., prevailing Eastern Time, at which time and place said bids will be publicly opened and read. BIDS also will be received on the same date and the same hour by an agent of the undersigned at the offices of the Municipal Advisory Council of Michigan, Buhl Building, 535 Griswold, Suite 1850, Detroit, Michigan 48226, where the bids will simultaneously be opened and read. Bidders may choose either location to present bids but not both locations. Award of the bids will be considered by the Board of Trustees of the Issuer at 6:30 o'clock in the p.m., prevailing Eastern Time, on that date.

FAXED BIDS: Bidders may submit signed bids via facsimile transmission to the Issuer at (517) 796-8596 or the Municipal Advisory Council at (313) 963-0943, provided that the faxed bids are received prior to the time and date fixed for receipt of bids. Bidders submitting faxed bids bear the full risk of failed or untimely transmission of their bids. Bidders are encouraged to confirm the timely receipt of their full and complete bids by telephoning the Issuer at (517) 990-1312 or the Municipal Advisory Council at (313) 963-0420. Bidders submitting bids by fax must satisfy the requirements of the good faith deposit obligations described herein.

ELECTRONIC BIDS may be presented via PARITY on the date and at the time shown above provided that such bidders must also comply with the good faith deposit requirements described herein. To the extent any instructions or directions set forth in PARITY conflict with this Notice, the terms of this Notice shall control. For further information about PARITY, potential bidders may contact Public Financial Management, Inc., at (734) 668-6688 or PARITY at (212) 849-5021.

PURPOSE AND SECURITY: The Bonds are being issued for the purpose of refunding a certain prior outstanding obligation of the Issuer (the "Refunded Bonds"). The Bonds are issued under the provisions of Act 331, Public Acts of Michigan, 1966, as amended, and Act 34, Public Acts of Michigan, 2001, as amended. The Issuer has pledged the limited tax full faith and credit of the Issuer for the payment of principal and interest on the Bonds. The Issuer has further pledged to levy sufficient ad valorem taxes within its authorized millage annually, as a first budget obligation, said levy must be subject to constitutional, statutory and charter tax rate limitations. The Issuer not having the power to levy taxes for the payment of the Bonds in excess of its constitutional, statutory or charter tax rate limitation, the Bonds will be limited tax general obligations of the Issuer, and, if tax collections are insufficient to pay the principal of or interest on the Bonds when due, the Issuer pledges to use any and all other resources available for the payment of the Bonds. The Issuer reserves the right to issue additional bonds of equal standing.

APPENDIX E - DRAFT OFFICIAL NOTICE OF SALE

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OPTIONAL DTC BOOK-ENTRY-ONLY: Unless otherwise requested by the Purchaser, the Bonds will be initially offered as registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company, New York, New York ("DTC") under DTC's Book-Entry-Only system of registration. If DTC Book-Entry-Only is used, Purchasers of interests in the Bonds (the "Beneficial Owners") will not receive physical delivery of bond certificates, and ownership by the Beneficial Owners of the Bonds will be evidenced by book-entry-only. As long as Cede & Co. is the registered owner of the Bonds as nominee of DTC, payments of principal and interest payments will be made directly to such registered owner which will in turn remit such payments to the DTC participants for subsequent disbursement to the Beneficial Owners.

BOND DETAILS: Said Bonds will be fully registered Bonds, of the denomination of $5,000 each or multiples thereof up to the amount of a single maturity, dated the date of delivery, numbered in order of issue from 1 upwards and will bear interest from their dated date payable on May 1, 2016, and semiannually thereafter.

The Bonds will mature on May 1 as follows:

Year Amount Year Amount 2017 $ 75,000 2022 $1,045,000 2018 955,000 2023 1,075,000 2019 965,000 2024 1,100,000 2020 995,000 2025 1,125,000 2021 1,020,000 2026 1,140,000 TERM BOND OPTION: Bidders shall have the option of designating bonds maturing in any year as serial bonds or term bonds, or both. The bidder must designate whether each of the principal amounts shown above represent a serial maturity or a mandatory redemption requirement for a term bond maturity. There may be more than one term bond maturity. In any event, the above principal amount schedule shall be represented by either serial bond maturities or mandatory redemption requirements, or a combination of both. Any such designation must be made within twenty-four (24) hours of the Bond sale.

MATURITY ADJUSTMENT: The aggregate principal amount of this issue is believed to be the amount necessary to provide, in part, adequate funds to retire the Refunded Bonds and transactional costs. The Issuer reserves the right to increase or decrease the aggregate principal amount of the Bonds by not more than $500,000 after receipt of the bids and prior to final award. Such adjustment, if necessary, will be made in increments of $5,000, will not exceed $75,000 per maturity and may be made in any maturity.

ADJUSTMENT TO PURCHASE PRICE: The purchase price of the Bonds will be adjusted proportionately to the adjustment in principal amount of the Bonds and in such manner as to maintain as comparable an underwriter spread as possible to the winning bid.

PAYING AGENT: Principal and interest shall be payable at a bank or trust company qualified to act as a paying agent in Michigan (the "Paying Agent"), or such other Paying Agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to any change in Paying Agent. In the event the Bonds cease to be held in book entry form only, the Paying Agent will serve as bond registrar and transfer agent, interest shall be paid by check mailed to the owner as shown by the registration books of the Issuer as of the close of business on the 15th day of the month preceding any interest payment date and the Bonds will be transferable

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only upon the registration books of the Issuer kept by the Paying Agent. See "Optional DTC Book-Entry-Only" above.

PRIOR REDEMPTION:

A. Mandatory Redemption – Term Bonds.

Principal designated by the original Purchaser of the Bonds as a term maturity shall be subject to mandatory redemption, in part, by lot, at par and accrued interest on the redemption dates corresponding to the maturities hereinbefore scheduled. When term Bonds are purchased by the Issuer and delivered to the Paying Agent for cancellation or are redeemed in a manner other than by mandatory redemption, the principal amount of the term Bonds affected shall be reduced by the principal amount of the Bonds so redeemed or purchased in the order determined by the Issuer.

B. No Optional Redemption.

Bonds of this issue are not subject to redemption at the option of the Issuer prior to maturity.

Notice of redemption of any Bond shall be given not less than thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption by mail to the Registered Owner at the registered address shown on the registration books kept by the Paying Agent. Bonds shall be called for redemption in multiples of $5,000 and Bonds of denominations of more than $5,000 shall be treated as representing the number of Bonds obtained by dividing the denomination of the Bond by $5,000 and such Bonds may be redeemed in part. The notice of redemption for Bonds redeemed in part shall state that upon surrender of the Bond to be redeemed a new Bond or Bonds in an aggregate principal amount equal to the unredeemed portion of the Bond surrendered shall be issued to the Registered Owner thereof. No further interest payment on the Bonds or portions of Bonds called for redemption shall accrue after the date fixed for redemption, whether presented for redemption, provided funds are on hand with the Paying Agent to redeem the same.

If less than all of the Bonds of any maturity shall be called for redemption prior to maturity unless otherwise provided, the particular Bonds or portions of Bonds to be redeemed shall be selected by the Paying Agent, in such manner as the Paying Agent in its discretion may deem proper, in the principal amounts designated by the Issuer. Upon presentation and surrender of such Bonds at the corporate trust office of the Paying Agent, such Bonds shall be paid and redeemed.

INTEREST RATE AND BIDDING DETAILS: The Bonds shall bear interest at a rate or rates not exceeding four percent (4%) per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both. The interest on any one Bond shall be at one rate only. All Bonds maturing in any one year must carry the same interest rate. The difference between the highest and lowest interest rates bid shall not exceed three percent (3%) per annum. No proposal for the purchase of less than all of the Bonds or at a price less than 99% or greater than 104% of the par value, or at a price which will cause the true interest cost on the Bonds to exceed four percent (4%) per annum, will be considered. THE INTEREST RATE BORNE BY BONDS MATURING IN ANY YEAR SHALL NOT BE LESS THAN THE INTEREST RATE BORNE BY BONDS MATURING IN THE PRECEDING YEAR.

GOOD FAITH: A certified or cashier's check in the amount of two percent (2%) of the par value of the Bonds may be submitted contemporaneously with the bid or, in the alternative, a deposit in the amount of two percent (2%) of the par amount of the Bonds shall be made by the winning bidder by federal wire transfer as directed by Public Financial Management, Inc., to be received by

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the Issuer not later than noon, prevailing Eastern Time, on the next business day following the award as a guarantee of good faith on the part of the bidder to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the Bonds. Any award made to the low bidder is conditional upon receipt of the good faith deposit. The good faith deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the good faith deposit will be retained by the Issuer. No interest shall be allowed on the good faith deposit. Payment for the balance of the purchase price of the Bonds shall be made at the closing. Good faith checks of unsuccessful bidders will be returned via U.S. Mail.

AWARD OF BONDS: The Bonds will be awarded to the bidder whose bid produces the lowest true interest cost which is the rate that will discount all future cash payments so that the sum of the present value of all cash flows will equal the Bond proceeds computed from February 3, 2016.

LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of Thrun Law Firm, P.C., East Lansing, Michigan, bond counsel, the original of which will be furnished without expense to the Purchaser of the Bonds at the delivery thereof. The fees of Thrun Law Firm, P.C. for services rendered in connection with such approving opinion are expected to be paid from Bond proceeds. Except to the extent necessary to issue its approving opinion as to the validity of the above Bonds, Thrun Law Firm, P.C. has not been requested to examine or review, and has not examined or reviewed, any financial documents, statements or other materials that have been or may be furnished in connection with the authorization, marketing or issuance of the Bonds and, therefore, has not expressed and will not express an opinion with respect to the accuracy or completeness of any such financial documents, statements or materials.

TAX MATTERS: In the opinion of bond counsel, assuming continued compliance by the Issuer with certain requirements of the Internal Revenue Code of 1986, as amended (the "Code"), interest on the Bonds is excluded from gross income for federal income tax purposes, as described in the opinion, and the Bonds and interest thereon are exempt from all taxation in the State of Michigan, except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof. The Issuer has designated the Bonds as "QUALIFIED TAX-EXEMPT OBLIGATIONS" within the meaning of the Code, and has covenanted to comply with those requirements of the Code necessary to continue the exclusion of interest on the Bonds from gross income for federal income tax purposes.

OFFICIAL STATEMENT: Upon the sale of the Bonds, the Issuer will publish an Official Statement in substantially the same form as the Preliminary Official Statement, subject to minor additions, deletions and revisions as required to complete the Preliminary Official Statement. Promptly after the sales date, but in no event later than seven (7) business days after such date, the Issuer will provide the successful bidder with a reasonable number of final Official Statements. Such final Official Statements may be obtained without cost to the successful bidder in a reasonable amount from the financial consultant as set forth herein. The successful bidder agrees to supply to the Issuer all necessary pricing information and any underwriter identification necessary to complete the Official Statement within 24 hours after the award of Bonds. Additional copies of the final Official Statement may be obtained up to three months following the sale of the Bonds by a request and payment of costs to the financial consultant. The Issuer agrees to provide to the successful bidder at closing a certificate executed by appropriate officers of the Issuer acting in their official capacities, to the effect that as of the date of delivery the information contained in the Official Statement, and any supplement to the Official Statement, relating to the Issuer and the Bonds are true and correct in all material respects, and that the Official Statement does not contain any untrue

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statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

CONTINUING DISCLOSURE: As more particularly described in the Official Statement, the Issuer will agree in the bond resolution or sales resolution to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission, (i) on or prior to the 180th day after the end of the fiscal year of the Issuer, commencing with the fiscal year ended June 30, 2016, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, generally consistent with the information contained or cross-referenced in the Official Statement relating to the Bonds, (ii) timely notice of the occurrence of certain significant events with respect to the Bonds and (iii) timely notice of a failure by the Issuer to provide the required annual financial information on or before the date specified in (i) above.

CERTIFICATE REGARDING "ISSUE PRICE": The successful bidder will be required to furnish, prior to the delivery of the Bonds, a certificate in a form acceptable to bond counsel as to the "issue price" of the Bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986, as amended. In addition, if the successful bidder will obtain a municipal bond insurance policy or other credit enhancement for the Bonds in connection with their original issuance, the successful bidder will be required, as a condition of delivery of the Bonds, to certify whether the premium therefor will be less than the present value of the interest expected to be saved as a result of such insurance or other credit enhancement. The form of an acceptable certificate will be provided by bond counsel.

DELIVERY OF BONDS: The Issuer will furnish Bonds ready for execution at its expense. Bonds will be delivered without expense to the Purchaser at a place to be mutually agreed upon with the Purchaser. The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the Bonds, will be delivered at the time of the delivery of the Bonds. If the Bonds are not tendered for delivery by twelve o'clock, noon, prevailing Eastern Time, on the 45th day following the date of sale, or the first business day thereafter if the 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the Bonds, withdraw the proposal by serving notice of cancellation in writing, on the undersigned, in which event the Issuer shall promptly return the good faith deposit. Accrued interest to the date of delivery of the Bonds shall be paid by the Purchaser at the time of delivery. Payment for the Bonds shall be made in federal reserve funds. Unless the Purchaser furnishes the Paying Agent with a list giving the denominations and names in which it wishes to have the certificates issued at least five (5) business days prior to delivery of the Bonds, the Bonds will be delivered in the form of a single certificate for each maturity registered in the name of the Purchaser.

CUSIP NUMBERS: CUSIP numbers will be imprinted on the Bonds at the expense of the Issuer. An improperly imprinted number or failure to print CUSIP numbers shall not constitute basis for the Purchaser to refuse to accept delivery of the Bonds. The Purchaser shall be responsible for requesting assignment of numbers and for the payment of any charges for the assignment of numbers. If the Purchaser requires CUSIP numbers on the Bonds, the Purchaser shall request assignment of CUSIP numbers for the Bonds and provide the numbers to Public Financial Management, Inc. and Thrun Law Firm, P.C., within forty-eight (48) hours of the bond sale.

BIDDER CERTIFICATION - NOT "IRAN-LINKED BUSINESS": By submitting a bid, the bidder shall be deemed to have certified that it is not an "Iran-Linked Business" as defined in Act 517, Public Acts of Michigan, 2012; MCL 129.311, et seq.

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FURTHER INFORMATION may be obtained from Public Financial Management, Inc., 3989 Research Park Drive, Ann Arbor, Michigan 48108. Telephone: (734) 668-6688.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

ENVELOPES containing the bids should be plainly marked "Proposal for Jackson College 2016 Refunding Bonds."

Shelia A. Patterson Secretary, Board of Trustees

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Additional information relative to this Bond issue may be obtained from:

Public Financial Management, Inc.3989 Research Park DriveAnn Arbor, Michigan 48108

734-668-6688 Facsimile: 734-668-6723