II. Findings of Fact

A. The District Attorney of Montgomery County has been properly served in this cause. In accordance with the provisions of Section 11-81- 222(c) of the Code of Alabama (1975), the District Attorney of Montgomery County has reviewed the Complaint in this cause and raised those issues she 12 deemed appropriate for contest and review by the Court. In addition, counsel for Intervenors joined in the assertions by the District Attorney and made separate arguments as well.

B. Legal notice to the taxpayers and citizens of Montgomery County has been given by publication in The Montgomery Advertiser on August 22, 2002, August 29, 2002 and September 5, 2002.

C. At its Regular Meeting on August 19, 2002, the County Commission duly adopted a Resolution and Ordinance (the "Tax Ordinance") approving a privilege license tax (the "Tax") upon the privilege of engaging in trades, occupations and professions in Montgomery County (the "County"), the method of reporting and collecting the same and the pledge and use thereof. The proceeds of the "Tax", after the deduction of the cost of collection, are to be distributed to the Board to be used exclusively for public school purposes.

D. At a Special Meeting on August 19, 2002, the Board of Education duly adopted a Resolution (the "Warrant Resolution") authorizing the issuance and sale of the Special Tax School Warrants, Series A (the "Warrants") to be issued under the provisions of Section 16-13-70, et seq. of the Code of Alabama (1975). The Warrant Resolution was adopted pursuant to the written recommendation of the Superintendent of the Board, Clinton 13 Carter, and was affirmed by the Board at a Special Meeting on September 17, 2002.

E. The principal amount of the Warrants that the Board of Education proposes to issue is $100,000,000.

F. The maximum rate of interest the Warrants are to bear will not exceed eight percent (8%) per annum.

G. The principal of the Warrants is payable in annual installments on July 1 of each year commencing July 1, 2004 and continuing on July 1 of each year thereafter with a final maturity on July 1, 2023.

H. Interest on the Warrants is payable semi-annually on each January 1 and July 1.

I. The place of payment for the Warrants shall be the Office of the Depository, Regions Bank, in Montgomery, Alabama.

J. The Warrants are to be paid from the proceeds of the "Tax" (less the cost of collection), and the tax revenues projected to be generated from the "Tax" will be adequate to cover the debt service for the payments.

K. There is no outstanding indebtedness payable or secured by the "Tax".

L. The gross assessed value of all property in the County for the fiscal year ended September 30, 2001 was $1,960,248,500 and the net 14 taxable valuation of all property in Montgomery County for such fiscal year was $1,725,525,360.

M. All monies derived from the "Tax" (less the cost of collection) shall be paid over to the Custodian of Public School Funds of the County and shall be used and expended exclusively for public school purposes. The demonstrated financial needs of the Montgomery County public school system far exceed the projected revenues from the "Tax".

N. Proceeds from the Warrants shall be used to provide funds for capital improvements to the Board's educational facilities, including several school construction projects and renovations and/or additions to existing schools.