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VOLUNTARY NOTICE OF POTENTIAL REFUNDING AND NEW MONEY TRANSACTIONS

Relating to various series of DISTRICT OF COLUMBIA (Washington, D.C.)  INCOME TAX SECURED REVENUE BONDS

The District of Columbia (the “District”) is evaluating the potential issuance of one or more tax-exempt and taxable series of Income Tax Secured Revenue Bonds and Income Tax Secured Revenue Refunding Bonds in a combined aggregate par amount of approximately $1,220,020,000*, at one or more times, through a negotiated sale on or around May 1, 2025 through a syndicate led by Wells Fargo Bank, National Association.

The potential issuance of $672,020,000 Income Tax Secured Revenue Bonds, Series 2025A, $285,685,000 Income Tax Secured Revenue Bonds, Series 2025B (Federally Taxable), and $262,315,000 Income Tax Secured Revenue Refunding Bonds, Series 2025C (the “Series 2025A Bonds,” the “Series 2025B Bonds,” and the “Series 2025C Bonds,” collectively, the “Bonds”), is referred to herein as the “Potential Transaction”. The District is under no obligation to pursue any transaction or any particular structure and reserves the right to change or modify its plans as it deems appropriate. No assurance is given that all or any part of the Potential Transaction will occur. The Potential Transaction, if pursued, may be discontinued at any time. The Preliminary Official Statement for the Bonds is expected to be available on or around April 23, 2025 (the “POS”).

The proceeds of the Series 2025A Bonds will be used, together with other funds of the District, to (i) pay or reimburse the District for capital project expenditures under the District’s capital improvements plan, (ii) refund the District’s outstanding General Obligation Commercial Paper Bond Anticipation Notes, Series 2022A (the “Refunded GO CP 2022A BANs”), and (iii) pay the costs and expenses of issuing and delivering the Series 2025A Bonds.

The proceeds of the Series 2025B Bonds will be used, together with other funds of the District, to (i) refund the District’s Income Tax Secured Bond Anticipation Note, Series 2024B (Federally Taxable) (the “Refunded Income Tax Secured 2024B BANs”), and (ii) pay the costs and expenses of issuing and delivering the Series 2025B Bonds.

The proceeds of the Series 2025C Bonds will be used, together with other funds of the District, to (i) refund all or a portion of the District’s General Obligation Bonds, Series 2015A (the “Refunded Series 2015A Bonds”), (ii) refund all or a portion of the District’s General Obligation Refunding Bonds, Series 2015B (the “Refunded Series 2015B Bonds”), (iii) refund all or a portion of the District’s Income Tax Secured Revenue Refunding Bonds, Series 2020D (Federally Taxable), and (iv) pay the costs and expenses of issuing and delivering the Series 2025C Bonds.

The District is not obligated to pursue or complete the Potential Transaction and may discontinue or postpone all or any part of the Potential Transaction at any time for any reason without notice. The issuance of the Bonds is subject to market conditions and other considerations the District deems appropriate. No assurance is given that any of the Bonds will be issued, or that any of the outstanding indebtedness of the District will be refunded, whether in whole or in part.

This notice does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including the Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of the final Official Statement relating to such Bonds, which will describe the actual terms of the Bonds.

This notice is being made on a voluntary basis and is not required by the terms of any continuing disclosure undertaking under SEC Rule 15c2-12 to which the District is a party. By giving this voluntary notice, the District is not undertaking to update this notice in any respect or to give any similar voluntary notice in the future, except as may be required by any applicable law. The District does, however, reserve the right to give similar voluntary notices in the future.

*Preliminary, subject to change

CFO Glen Lee's Message on Moody's Rating Review:

Today, Moody's Ratings announced that it has placed the District of Columbia’s credit ratings under review for a possible downgrade; another outcome of the federal workforce reductions and shifts in the real property markets. The District’s most recent revenue estimate reflected the impact of these two fundamental changes in the local economy.  No rating decision has been made at this time by Moody’s.

We will continue to exercise fiscal prudence and sound financial management practices in collaboration with the elected leadership to ensure the District’s financial health and sustainability.