THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. NEW ISSUE S&P RATINGS--Program: AA+ District Underlying: A+ Book-Entry Only See “RATINGS” herein.

In the opinion of Bryan Cave LLP, Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended, the interest on the Series 2009B Bonds is excluded from gross income for federal and Missouri income tax purposes, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. The Series 2009B Bonds are “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “TAX MATTERS” herein.

$2,518,938 HOLLISTER REORGANIZED SCHOOL DISTRICT

NO. R-5 OF TANEY COUNTY, MISSOURI TAX-EXEMPT GENERAL

OBLIGATION SCHOOL BONDS SERIES 2009B

(MISSOURI DIRECT DEPOSIT PROGRAM)

Dated: September 15, 2009 Due: March 1, as shown below

The Series 2009B Bonds (the “Bonds”) will be issued as fully registered bonds without coupons, and, when issued, will be registered separately by series in the name of Cede & Co., as Bondowner and nominee for the Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry only form, in the denominations of $5,000 or integral multiples thereof except one Bond of the initial maturity shall be in the denomination of $3,938. Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. as nominee of DTC, is the Bondowner, references herein to the Bondowners or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as defined herein) of the Bonds. See “THE BONDS - Book-Entry Only System” herein.

Principal of the Bonds will be paid on March 1 in the years in which the Bonds mature (as shown below). Interest on the Bonds is payable semiannually on each March 1 and September 1, commencing March 1, 2010. So long as DTC or its nominee, Cede & Co., is the Bondowner, such payments will be made by UMB Bank, N.A., Kansas City, Missouri as paying agent and registrar (the “Paying Agent”) directly to such Bondowner. Disbursement of such payments to DTC Participants is the responsibility of DTC. Distribution of such payments to Beneficial Owners is the responsibility of DTC Participants and Indirect Participants, as more fully described herein.

THE BONDS AND INTEREST THEREON WILL CONSTITUTE GENERAL OBLIGATIONS OF THE DISTRICT, PAYABLE FROM AD VALOREM TAXES WHICH MAY BE LEVIED WITHOUT LIMITATION AS TO RATE OR AMOUNT UPON ALL OF THE TAXABLE TANGIBLE PROPERTY, REAL AND PERSONAL, WITHIN THE TERRITORIAL LIMITS OF THE DISTRICT. THE BONDS ARE ENTITLED TO THE BENEFITS OF THE DIRECT DEPOSIT AGREEMENT AND THE PLEDGE OF STATE AID PAYABLE TO THE DISTRICT MADE THEREUNDER. SEE “SECURITY FOR THE BONDS” HEREIN.

MATURITY SCHEDULE

Maturity March 1

Principal Amount

Interest Rate

Price

2010 $618,938 3.00% 100.967% 2011 100,000 5.00 105.784 2012 100,000 3.00 104.194 2028 800,000 5.00 106.180 2029 900,000 5.00 105.382

The Bonds are subject to redemption and payment prior to maturity at the option of the District, as a whole

or in part, as described herein under the heading “THE BONDS - Optional Redemption and Mandatory Redemption.”

The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to the approval of legality by Bryan Cave LLP, Kansas City, Missouri, Bond Counsel, and certain other conditions. It is expected that the Bonds in book-entry only form will be available through the facilities of the Depository Trust Company, in New York, New York, on or about September 22, 2009.

George K. Baum & Company The date of this Official Statement is August 27, 2009.

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HOLLISTER REORGANIZED SCHOOL DISTRICT NO. R-5 OF TANEY COUNTY, MISSOURI

1798 State Highway BB Hollister, Missouri 65672

(417) 243-4005

Board of Education

Lisa Westfall, President Andy Penrod, Vice President

Teresa Behle, Secretary Joe Donavant, Treasurer

Tony Doerr, Member Carl Bonnell, Member

Dan Crisp, Member

Dr. Timothy A. Taylor, Superintendent of Schools

BOND COUNSEL

Bryan Cave LLP Kansas City, Missouri

UNDERWRITER

George K. Baum & Company Kansas City, Missouri

CERTIFIED PUBLIC ACCOUNTANTS

Jerry Blankenship, C.P.A. Monett, Missouri

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REGARDING USE OF THIS OFFICIAL STATEMENT

No dealer, broker, salesman or other person has been authorized by the District or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been furnished by the District and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness, and is not to be construed as a representation, by the Underwriter. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District since the date hereof.

_____________________

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

______________________

THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES OR “BLUE SKY” LAWS. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION.

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TABLE OF CONTENTS

Page

INTRODUCTION ........................................................................................................................................ 1 Purpose of the Official Statement .................................................................................................... 1 The District ...................................................................................................................................... 1 The Bonds ........................................................................................................................................ 1 Security and Source of Payment ...................................................................................................... 1 Other Outstanding Obligations Payable........................................................................................... 2 Financial Statements ........................................................................................................................ 2 Bond Ratings.................................................................................................................................... 2

PLAN OF FINANCING ............................................................................................................................... 2 Authorization and Purpose of Bonds ............................................................................................... 2 Sources and Uses of Funds .............................................................................................................. 2

THE BONDS ............................................................................................................................................ 3 Description of the Bonds ................................................................................................................. 3 Security and Sources of Payment for the Bonds; Direct Deposit of State Aid Payments................ 3 Redemption Provisions .................................................................................................................... 4 Book-Entry Only System................................................................................................................. 5 Transfer Outside Book-Entry System.............................................................................................. 6 CUSIP Numbers .............................................................................................................................. 7

GENERAL AND ECONOMIC INFORMATION CONCERNING THE DISTRICT ................................ 7 Location and Size............................................................................................................................. 7 Government and Organization......................................................................................................... 7 Educational Facilities....................................................................................................................... 8 History of Enrollment ...................................................................................................................... 8 Other District Statistics .................................................................................................................... 8 School Rating and Accreditation ..................................................................................................... 8 Employment..................................................................................................................................... 9 Medical and Recreational Facilities................................................................................................. 9 Municipal Services and Utilities ...................................................................................................... 9 Transportation and Communication Facilities............................................................................... 10 Housing.......................................................................................................................................... 10 Population and Other Statistics ...................................................................................................... 10

DEBT STRUCTURE OF THE DISTRICT ................................................................................................ 11 Overview........................................................................................................................................ 11 Current Long-Term General Obligation Indebtedness .................................................................. 11 History of General Obligation Indebtedness.................................................................................. 12 Debt Service Requirements............................................................................................................ 12 Overlapping or Underlying Indebtedness ...................................................................................... 13 Legal Debt Capacity ...................................................................................................................... 13 Other Obligations of the District.................................................................................................... 13

FINANCIAL INFORMATION CONCERNING THE DISTRICT ........................................................... 15 Accounting, Budgeting and Auditing Procedures.......................................................................... 15 Fund Balances Summary ............................................................................................................... 15 Summary Statement of Cash Receipts, Disbursements and Changes in Fund Balances ............... 16 Sources of Revenue........................................................................................................................ 17

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History of State Funding................................................................................................................ 17 Changes in State Funding Distribution .......................................................................................... 18 Tax Limitation Provisions.............................................................................................................. 19 Risk Management .......................................................................................................................... 20 Employee Retirement and Pension Plans....................................................................................... 20 Employee Relations ....................................................................................................................... 20

PROPERTY TAX INFORMATION CONCERNING THE DISTRICT ................................................... 20 Property Valuations ....................................................................................................................... 20 Property Tax Levies and Collections ............................................................................................. 22 Tax Rates ....................................................................................................................................... 22 Tax Collection Record ................................................................................................................... 23 Major Property Taxpayers ............................................................................................................. 24

LEGAL MATTERS.................................................................................................................................... 24 Legal Proceedings.......................................................................................................................... 24 Approval of Legality...................................................................................................................... 24

TAX MATTERS......................................................................................................................................... 24 Tax Opinion of Bond Counsel ....................................................................................................... 24 Other Tax Consequences ............................................................................................................... 25

RATINGS .......................................................................................................................................... 26 SECONDARY MARKET DISCLOSURE................................................................................................. 26 MISCELLANEOUS ................................................................................................................................... 27

Underwriting.................................................................................................................................. 27 Certification and Other Matters Regarding Official Statement ..................................................... 27 Additional Information .................................................................................................................. 28

APPENDIX A: Excerpt of Financial Statements with Independent Auditor’s Report for Hollister Reorganized School District No. R-5 for the Fiscal Year Ended June 30, 2008 ............A-1

(THIS PAGE LEFT BLANK INTENTIONALLY)

OFFICIAL STATEMENT

$2,518,938 HOLLISTER REORGANIZED SCHOOL DISTRICT

NO. R-5 OF TANEY COUNTY, MISSOURI TAX-EXEMPT GENERAL

OBLIGATION SCHOOL BONDS SERIES 2009B

(MISSOURI DIRECT DEPOSIT PROGRAM)

INTRODUCTION

This introduction is only a brief description and summary of certain information contained in this Official Statement and is qualified in its entirety by reference to more complete and detailed information contained in the entire Official Statement, including the cover page and appendix hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement.

Purpose of the Official Statement

The purpose of this Official Statement is to furnish information relating to Hollister Reorganized School District No. R-5 of Taney County, Missouri (the “District”), and the District’s Tax-Exempt General Obligation School Bonds, Series 2009B (Missouri Direct Deposit Program), in the principal amount of $2,518,938 (the “Series 2009B Bonds” or the “Bonds”), dated September 15, 2009.

The District

The District is a school district organized and existing under the laws of the State of Missouri. See the captions “GENERAL AND ECONOMIC INFORMATION CONCERNING THE DISTRICT,” “DEBT STRUCTURE OF THE DISTRICT”, “FINANCIAL INFORMATION CONCERNING THE DISTRICT” and “PROPERTY TAX INFORMATION CONCERNING THE DISTRICT” herein.

The Bonds

The Bonds are being issued for the purpose of building an early childhood center and furnishing and equipping the same, renovating, repairing and improving existing school facilities and acquiring existing school facilities currently leased by the District (the “Project”). See the caption “THE BONDS” herein. See the caption “THE BONDS” herein.

The Bonds consist of a portion of general obligation bonds in the amount of $6,500,000 authorized by the required four-sevenths majority of the qualified voters of the District at an election held on April 7, 2009 The Bonds are being issued pursuant to a resolution (the “Bond Resolution”) adopted by the Board of Education, the governing body of the District. See the caption “THE BONDS” herein. The District intends to issue the balance of the bonds authorized at the April election contemporaneously with the issuance of the Bonds.

Security and Source of Payment

The Bonds will be general obligations of the District and will be payable from ad valorem taxes which may be levied without limitations as to rate or amount upon all taxable property, real and personal, within the territorial limits of the District. See the caption “THE BONDS – Security and Sources of Payment for the Bonds; Direct Deposit of State Aid Payments” herein.

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Other Outstanding Obligations Payable

In addition to the Bonds, the District is obligated to meet from ad valorem taxes the principal and interest requirements on the District’s other general obligation bonds as set forth in this Official Statement under the caption “DEBT STRUCTURE OF THE DISTRICT – Current Long-Term Indebtedness.”

The District is also obligated on an annually renewable basis to make certain lease payments under an annually renewable lease purchase financing described under the caption “DEBT STRUCTURE OF THE DISTRICT – Other Obligations of the District.” The lease payments are payable solely from moneys deposited in the Capital Projects Fund from a levy specific to the Capital Projects Fund and not from moneys in the District’s Debt Service Fund which are available solely to make payments on the District’s general obligation bonds.

Financial Statements

Audited financial statements of the District, as of and for the year ended June 30, 2008, are included in Appendix A to this Official Statement. These financial statements have been audited by Jerry Blankenship, C.P.A., independent certified public accountants, to the extent and for the period indicated in the Independent Auditors’ Report which is also included in Appendix A hereto.

Bond Ratings

The District is expected to receive the ratings set forth on the cover page from Standard & Poor’s Ratings Group on this issue. See the caption “RATINGS” herein.

PLAN OF FINANCING

Authorization and Purpose of Bonds

The Bonds are authorized pursuant to and in full compliance with the Constitution and statutes of the State of Missouri, including particularly Article VI, Section 26 of the Missouri Constitution and Chapters 108 and 164 of the Revised Statutes of Missouri, as amended. The issuance of the Bonds was approved by more than four-sevenths of the qualified voters of the District at an election duly held in the District on April 7, 2009. The Bonds are being issued pursuant to the Bond Resolution for the purpose of financing the cost of the Project.

Contemporaneously with the issuance of the Bonds, the District is issuing its General Obligation Qualified School Construction Bonds, Series 2009A (Missouri Direct Deposit Program), in the aggregate principal amount of $3,981,062, being the balance of the bonds authorized by voters at the April, 2009 election, to finance a portion of the Project.

Sources and Uses of Funds

The following table summarizes the estimated sources of funds, including the proceeds from the sale of the Bonds, and the expected uses of such funds, in connection with the plan of financing:

Sources of Funds:

Proceeds of the Bonds $2,518,938.00 Reoffering Premium 113,841.13 Accrued interest 2,169.38

Total $2,634,948.51

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Uses of Funds:

Funds available for the Project $2,594,127.63 Costs of issuance for the Bonds (including Underwriter’s discount)

28,651.50

Deposit to Debt Service Fund 2,169.38 Total $2,634,948.51

THE BONDS

The following is a summary of certain terms and provisions of the Bonds. Reference is hereby made to the Bonds and the provisions with respect thereto in the Bond Resolution for the detailed terms and provisions thereof.

Description of the Bonds

The Bonds will be issued in the principal amount stated on the Cover Page of this Official Statement, will be dated September 1, 2009, and will consist of fully registered bonds without coupons in the denomination of $5,000 or any integral multiple thereof. The Bonds will mature, subject to redemption as described below, on March 1 in the years and in the principal amounts set forth on the Cover Page of this Official Statement. Interest on the Bonds will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2010. Principal will be payable upon presentation and surrender of the Bonds by the Registered Owners thereof at UMB Bank, N.A., in the City of Kansas City, Missouri, Paying Agent, or at such other location designated by the Paying Agent. Interest shall be paid to the Registered Owners of the Bonds as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed to the Paying Agent to the address of such Registered Owners shown on the Bond Register or (b) at such other address as is furnished to the Paying Agent in writing by any Registered Owner or (c) in the case of an interest payment to the Securities Depository or any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address (which shall be in the continental United States) including the bank ABA routing number and account number to which such Registered Owner wishes to have such wire directed.

Security and Sources of Payment for the Bonds; Direct Deposit of State Aid Payments

The Bonds will constitute general obligations of the District and will be payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the District.

Pursuant to Section 360.111 of the Revised Statutes of Missouri and related statutes (the “Deposit Law”), the State of Missouri (the “State”) and the District may agree to transfer to a Missouri bank, as direct deposit trustee (the “Deposit Trustee”), a portion of the District’s State aid payments and distributions normally used for operational purposes (“State Aid”) in order to provide for payment of debt service on the Bonds. On the date of issuance of the Bonds, the District will enter into a Direct Deposit Agreement (the “Deposit Agreement”) with the Office of the Treasurer of the State of Missouri (“Treasurer’s Office”), the Department of Elementary and Secondary Education of the State of Missouri (“DESE”), the Health and Educational Facilities Authority of the State of Missouri (the “Authority”) and the Deposit Trustee. Under the Deposit Agreement, the District will pledge its State Aid, except for State Aid for Gifted and Exceptional Pupils and Remedial Reading, to the payment of the Bonds. The Deposit Agreement will provide that during each month of October through December 2009, one-third (1/3) of debt service on the Bonds due during the bond year ending March 1, 2010, will be deposited with the

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Deposit Trustee, and during each of the first ten months of each subsequent bond year (March through December), one-tenth (1/10th) of debt service on the Bonds during that bond year will be deposited with the Deposit Trustee. Amounts of State Aid to the District in excess of the amounts required to be deposited with the Deposit Trustee will be transferred directly to the District as has historically been the case with all State Aid.

Each month, pursuant to the terms of the Deposit Agreement, DESE will advise the Treasurer’s Office of the amount of the District’s State Aid to be deposited with the Deposit Trustee for the purpose of paying the Bonds, as specified in the Deposit Agreement. If there is a shortfall in a monthly payment, it is to be made up in the succeeding monthly payment of State Aid. Following receipt of the deposits, the Deposit Trustee will invest the amounts for the benefit of the District in legally permitted investments. The Deposit Trustee will transfer to the Paying Agent the amount necessary for payment of debt service on the Bonds not later than the business day prior to each payment date with respect to the Bonds. The District remains obligated to provide funds to the Paying Agent for debt service on the Bonds if the amounts of State Aid transferred are not sufficient to pay the Bonds when due.

Nothing in the Deposit Law or the Deposit Agreement relieves the District of its obligation to make payments of principal and interest on the Bonds, or to impose any debt service levy or capital projects levy sufficient to retire the Bonds. Moneys of the District which would otherwise be used to pay the Bonds on each payment date may be transferred to the District’s operational funds to replace State Aid funds used to pay the Bonds. The State has not committed pursuant to the Deposit Law, the Deposit Agreement or otherwise to maintain any particular level of State Aid on behalf of the District, and the State is not obligated in any manner, contractually or morally, to make payments of debt service on the Bonds, other than its obligation to make transfers to the Deposit Trustee as described above. No assurance can be made that the amount of annual State Aid to the District will not in the future drop below that of the annual debt service requirements on the Bonds.

Redemption Provisions

Optional Redemption. At the option of the District, the Series 2009B Bonds or portions thereof maturing on March 1, 2028, and thereafter may be called for redemption and payment prior to maturity on March 1, 2019 and thereafter, in whole or in part at any time. When less than all Series 2009B Bonds are to be redeemed, such Series 2009B Bonds shall be redeemed from maturities selected by the District, and Series 2009B Bonds of less than a full maturity shall be selected by the Paying Agent in multiples of $5,000 principal amount at the redemption price of 100% of the principal amount thereof, plus accrued interest thereon to the redemption date.

Notice and Effect of Call for Redemption. In the event of any redemption, the Paying Agent will give written notice of the District’s intention to redeem and pay Bonds by first-class mail to the State Auditor of Missouri, to the original purchaser of the Bonds, and to the Registered Owner of each Bond, said notice to be mailed not less than 30 days prior to redemption date. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the redemption date, at the redemption price therein specified, and from and after the redemption date (unless the District defaults in the payment of the redemption price) such Bonds or portion of Bonds shall cease to bear interest.

The Paying Agent, as long as a book-entry system is used for the Bonds, will send notices of redemption only to the Securities Depository, as the registered owner of the Bonds. It is expected that the Securities Depository will notify the DTC Participants and request the DTC Participants to notify the Beneficial Owners of the Bonds of such redemption. Any failure of the Securities Depository to advise any of the DTC Participants, or of any DTC Participant or any nominee to notify any Beneficial Owner of

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the Bonds, of any such notice and its content or effect will not affect the validity or sufficiency of the proceedings relating to the redemption of the Bonds called for redemption.

Book-Entry Only System

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’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each maturity of each series of the Series 2009 Bonds, in the aggregate principal amount of such issue, and will be deposited with DTC.

DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, 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 asset servicing for over 2.2 million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market instrument from over 100 countries that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical 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 The Depository Trust & Clearing Corporation (“DTCC”). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.

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

To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of 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 nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records

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reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Securities unless authorized by a Direct Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other 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 the District or Agent on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor its nominee, Agent, or the District, 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 representative of DTC) is the responsibility of the District or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

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

The District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities 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 that the District believes to be reliable, but the District takes no responsibility for the accuracy thereof.

Transfer Outside Book-Entry System

If the Book-Entry Only System is discontinued the following provisions would apply. Each Bond when issued shall be registered by the Paying Agent in the name of the owner thereof on the Bond Register. Bonds are transferable only upon the Bond Register upon presentation and surrender of the

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Bonds, together with instructions for transfer. Bonds may be exchanged for Bonds in the same aggregate principal amount and maturity upon presentation to the Paying Agent, subject to the terms, conditions and limitations set forth in the Bond Resolution and upon payment of any tax, fee or other governmental charge required to be paid with respect to any such registration, transfer or exchange.

CUSIP Numbers

It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds, nor any error in the printing of such numbers shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and payment for any Bonds.

GENERAL AND ECONOMIC INFORMATION CONCERNING THE DISTRICT

Location and Size

The District is located in Southwest, Missouri, approximately 30 miles south of Springfield, Missouri, and it encompasses approximately 77 square miles primarily in Taney County with a small portion in Stone County. The District has an estimated population of 10,000.

Government and Organization

The District is governed by a seven-member Board of Education. The members of the Board are elected by the voters of the District for three-year staggered terms with two or three members being elected each year. All Board members are elected at-large and serve without compensation. The Board is responsible for all policy decisions. The President of the Board is elected by the Board from among its members for a term of one year and has no regular administrative duties. The Secretary and Treasurer are appointed by the Board and may or may not be members of the Board.

The Board of Education appoints the Superintendent of Schools who is the chief administrative officer of the District responsible for carrying out the policies set by the Board. Additional members of the administrative staff are appointed by the Board of Education upon recommendation by the Superintendent. The District has a total of 212 employees, including 9 administrative personnel, 111 teachers and 92 non-certified employees.

The current members and officers of the Board of Education are:

Name

Office

Term Expires

Lisa Westfall President April 2011 Andy Penrod Vice President April 2010 Joe Donavant Treasurer April 2011 Teresa Behle Secretary April 2011 Tony Doerr Member April 2010 Carl Bonnell Member April 2012

Dan Crisp Member April 2012

The Board has appointed Dr. Timothy Taylor as Superintendent of Schools. Dr. Taylor has been Superintendent of the District for two years. Dr. Taylor received his Doctorate degree from University of Missouri at Columbia.

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Dr. Taylor was previously employed as the principal for Hollister Elementary School for two years, for Houston and Mountain Grove Middle Schools for a combined total of nine years, and for Mountain View High School for one.

Educational Facilities

The District operates four schools facilities described below.

Name of School

Grades Served

Hollister Elementary Pre-4 Hollister Middle High School 5-6 Hollister Junior High School 7-8 Hollister High School 9-12

History of Enrollment

The following table shows student enrollment in the District as of the last Wednesday in September, for each of the last four school years and for the current year.

Enrollment figures for the District for the past five years and the most recent year are as follows:

Year Enrollment 2008-09 1,311 2007-08 1,263 2006-07 1,182 2005-06 1,149 2004-05 1,175

Source: Hollister R-5 School District

Other District Statistics

The average daily attendance in the District for the 2007-2008 academic year was 93.9%. The student/teacher ratio for such year was 17:1, and the cost of instruction in the District was $7,788.00 per pupil.

School Rating and Accreditation

The Missouri Department of Elementary and Secondary Education (DESE) administers the Missouri School Improvement Program, whereby school districts are evaluated in all areas of operation, including curriculum, facilities, teaching staff and administrative staff. The evaluation culminates with the placing of each district in one of three categories: “accredited,” “provisionally accredited” or “unaccredited.” In March, 2005, DESE awarded the District “provisional accredited” status. The District’s next evaluation will be in 2011. The classification is not a bond or debt rating, but solely an evaluation made by DESE.

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Employment

Listed below are the major employers located within the District and the member employed by each.

Employer Number of Employees Big Cedar Lodge 500 to 625 College of the Ozarks 235 Hollister School District 212 Showboat Branson Belle 200 Lowes 135 Point Lookout 98 Gage Construction 58 McDonald’s 55 Country Mart 50 State Park Marina 50 Source: Hollister R-5 School District

The following tables set forth unofficial employment figures for Taney County, the county containing nearly all of the population of the District:

Taney County Average

for Year

Total

Labor Force

Employed

Unemployed

Unemployment

Rate 2008 27,954 25,015 2,139 7.7% 2007 26,608 24,800 1,808 6.8 2006 25,480 23,681 1,799 7.1 2005 24,725 22,523 2,202 8.9 2004 24,206 21,964 2,242 9.3

Source: Department of Economic Development, Missouri Economic Research and Information Center.

Medical and Recreational Facilities

There are many four physicians who provide medical care in the District. The nearest hospital is Skaggs Memorial Hospital in nearby Branson, Missouri. District residents have access to all the medical and health facilities in the Springfield metropolitan area.

Numerous recreational and entertainment activities are available in the area due to the proximity of the City of Branson, famous for its many country music shows, Silver Dollar City, Shepherd of the Hills and Taneycomo and Table Rock Lakes.

Municipal Services and Utilities

Electric service in the District is provided by Empire Electric Co. Telephone service is provided by GTE. The City of Hollister provides water and sewer service to school facilities.

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Transportation and Communication Facilities

The residents of the District have excellent access to the interstate highway system as I-44 running from Joplin to St. Louis, Missouri is located approximately 30 miles northwest of Hollister via U.S. Highway 65. The City of Springfield is a 30-minute drive. Springfield/Branson Regional Airport located in Springfield offers scheduled flights daily.

Housing

The median value of owner-occupied housing units in the area of the District and related areas was, according to the 2000 Census, as follows:

City of Hollister $74,500 Taney County $93,500 State of Missouri $89,900

Source: U.S. Department of Commerce. Economics and Statistics Administration, Bureau of the Census

Population and Other Statistics

1970 1980 1990 2000City of Hollister 2,628 3,867Taney County 13,023 20,467 25,561 39,703State of Missouri 4,677,623 4,916,766 5,117,073 5,358,692U.S. 203,302,031 226,545,805 249,632,692 265,284,000 Sources: U.S. Department of Commerce, Economics and Statistics Administration, Bureau of the Census, and Official Manual, State of

Missouri, 1999-00.

Income Status in 1999 (dollars)

Median Family

City of Hollister 24,535 Taney County 30,898 State of Missouri 37,934

Source: U.S. Department of Commerce, Economics and Statistics Administration, Bureau of the Census

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DEBT STRUCTURE OF THE DISTRICT

Overview

The following table summarizes certain financial information concerning the District. This information should be reviewed in conjunction with the information contained in this section and the excerpts of financial statements of the District in Appendix A hereto.

2008 Assessed Valuation1 $160,572,708 2008 Estimated Actual Valuation2 $693,398,835 Net Outstanding General Obligation Bonds (“Direct Debt”)3 $18,624,803 Lease Debt4 $5,760,000 Total Direct and Lease Debt $24,384,803 Estimated Population 10,000 Per Capita Direct Debt $2,438.48Ratio of Direct Debt to Assessed Valuation 11.60%Ratio of Direct Debt to Estimated Actual Valuation 2.68%Ratio of Direct and Lease Debt to Assessed Valuation 15.18%Ratio of Direct and Lease Debt to Estimated Actual Valuation 3.52%Overlapping and Underlying General Obligation and Lease Debt (“Indirect Debt”)5 $10,430,000 Total Direct, Lease and Indirect Debt $34,814,803 Per Capita Direct, Lease and Indirect Debt $3,481.41 Ratio of Direct, Lease and Indirect Debt to Assessed Valuation 21.68%Ratio of Direct, Lease and Indirect Debt to Estimated Valuation 5.02% 1 Includes 2008 real and personal property as provided by the Taney and Stone County Clerks. For further details, see “PROPERTY TAX

INFORMATION CONCERNING THE DISTRICT.” 2 Estimated actual valuation is calculated by dividing different classes of property by the corresponding assessment ratio. For a detail of

these different classes and ratios, see “PROPERTY TAX INFORMATION CONCERNING THE DISTRICT.” 3 Outstanding general obligation bonds totaling $19,880,000 (including the Bonds) less a Debt Service Fund balance of $1,255,197 available

to pay principal of bonds as of May 1, 2009. 4 Lease Debt is comprised of the $5,760,000 principal amount of the Lease Participate Certificates described under the caption “DEBT

STRUCTURE OF THE DISTRICT – Other Obligations of the District.” 5 For further details see “DEBT STRUCTURE OF THE DISTRICT – Overlapping or Underlying Indebtedness.”

Current Long-Term General Obligation Indebtedness

The following table sets forth the other outstanding general obligation indebtedness of the District at the time of issuance of the Bonds.

Category of Indebtedness Date of Indebtedness Amount Outstanding General Obligation May 1, 2003 $ 7,070,000 General Obligation October 1, 2007 6,310,000 Total $13,380,000

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History of General Obligation Indebtedness

The following table sets forth debt information pertaining to the District as of the end of each of the last five fiscal years:

As of June 30

Total

Outstanding Debt

Debt Service Fund Available

for Principal Payments

Net Outstanding Debt

Net Debt as % of

Assessed Value 2008 $13,585,000 $1,356,045 $12,228,955 8.34% 2007 14,095,000 1,094,602 13,000,398 10.57 2006 14,095,000 992,711 13,102,289 11.59 2005 14,095,000 988,060 13,106,940 12.69 2004 14,095,000 714,688 13,380,312 13.80

The District has never defaulted on the payment of any of its debt obligations.

Debt Service Requirements

The following schedule shows the yearly principal and interest requirements for all outstanding general obligation bonds of the District, including requirements for the Bonds being offered.

Fiscal Year

Outstanding Bonds

Series 2009A Bonds

Series 2009B Bonds

Ended June 30

Principal

Interest

Principal*

Interest

Principal

Interest

Total

2010 $ 285,000 $ 309,067.50 $ 0 $ 17,709.09 $ 618,938 $ 51,445.31 $ 1,282,159.90 2011 400,000 609,300.00 175,000 40,606.84 100,000 93,000.00 1,417,906.84 2012 500,000 595,700.00 175,000 40,606.84 100,000 85,000.00 1,496,306.84 2013 600,000 578,200.00 175,000 40,606.84 0 85,000.00 1,478,806.84 2014 700,000 568,750.00 225,000 40,606.84 0 85,000.00 1,619,356.84 2015 800,000 504,000.00 225,000 40,606.84 0 85,000.00 1,654,606.84 2016 905,000 428,000.00 225,000 40,606.84 0 85,000.00 1,683,606.84 2017 1,000,000 337,500.00 250,000 40,606.84 0 85,000.00 1,713,106.84 2018 1,065,000 212,500.00 250,000 40,606.84 0 85,000.00 1,653,106.84 2019 1,165,000 202,500.00 275,000 40,606.84 0 85,000.00 1,768,106.84 2020 1,250,000 202,500.00 300,000 40,606.84 0 85,000.00 1,878,106.84 2021 1,335,000 202,500.00 325,000 40,606.84 0 85,000.00 1,988,106.84 2022 1,575,000 202,500.00 325,000 40,606.84 0 85,000.00 2,228,106.84 2023 1,800,000 81,000.00 325,000 40,606.84 0 85,000.00 2,331,606.84 2024 0 .00 731,062 1,579.15 0 85,000.00 817,641.15 2025 0 .00 0 .00 0 85,000.00 85,000.00 2026 0 .00 0 .00 0 85,000.00 85,000.00 2027 0 .00 0 .00 0 85,000.00 85,000.00 2028 0 .00 0 .00 800,000 85,000.00 885,000.00 2029 0 .00 0 .00 900,000 45,000.00 945,000.00 Total $13,380,000 $5,034,017.50 $3,981,062 $587,784.00 $2,518,938 $1,637,445.31 $27,139,246.81

_______________________________ *Mandatory sinking fund requirement

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Overlapping or Underlying Indebtedness

The following table sets forth overlapping and underlying general obligation and lease indebtedness of political subdivisions with boundaries overlapping the District or lying within the District as of the date indicated, and the percent attributable (on the basis of assessed valuation) to the District, based on information furnished by the jurisdictions responsible for the debt or lease obligations. The District has not independently verified the accuracy or completeness of such information. Furthermore, political subdivisions may have issued additional bonds or incurred lease obligations since the date indicated or may have ongoing programs requiring the issuance of substantial additional bonds or incurring of lease obligations, the amounts of which cannot be determined at this time.

General Obligation Indebtedness

Jurisdiction

Obligations Outstanding

Percent Attributable

to the District

Amount Attributable

to the District City of Hollister (Series 1994) 740,000 100% 740,000

Leasehold Indebtedness

Jurisdiction

Obligations Outstanding

Percent Attributable

to the District

Amount Attributable

to the District City of Hollister (Series 2000, 2001,2004,2005) $9,690,000 100.00% $9,690,000

Legal Debt Capacity

Under Article VI, Section 26(b) of the Constitution of Missouri, the District may incur indebtedness for authorized school district purposes not to exceed 15% of the valuation of taxable tangible property in the District according to the last completed assessment upon the approval of four-sevenths of the qualified voters in the District voting on the proposition at any municipal, primary or general election or two-thirds voter approval on any other election date. The current legal debt limit of the District is approximately $24,085,906 (which limit includes value attributable to state assessed railroad and utility property, as explained below). The total outstanding indebtedness of the District, including the Bonds, is $19,880,000. Taking into account a Debt Service Fund balance of $1,255,197 available to pay principal of general obligation bonds of the District as of April 1, 2009, the legal debt margin of the District is approximately $5,461,103.

Because of the manner in which tax collections are distributed to school districts from assessments of state assessed railroad and utility property (see the caption “PROPERTY TAX INFORMATION CONCERNING THE DISTRICT – Property Valuations – Current Assessed Valuation), the valuation of such property physically located within a school district is not normally determined unless, without the value of such property included in the calculation, the district would exceed its legal debt limit. In order for the District to issue the Bonds, it was necessary for the District to include the value of state assessed railroad and utility property located within the District in calculating the District’s legal debt limit.

Other Obligations of the District

In February, 2003, $3,125,000 principal amount of Refunding Lease Participation Certificates (Hollister Reorganized School District No. R-5 of Taney County, Missouri Project), Series 2003 (the “Series 2003 Certificates”), were delivered pursuant to a Trust Indenture dated as of February 1, 2003 (the

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“Indenture”), between the Missouri School Boards Association (the “Association”) and First Bank of Missouri, Gladstone, Missouri, as trustee (the “Trustee”), for the purpose of providing funds to refund certain then outstanding lease revenue bonds issued to provide funds to make capital improvements to school facilities of the District, to fund a reserve fund and to pay costs related to the delivery of the Series 2003 Certificates.

Under the terms of a Site Lease dated as of February 1, 2003 (the “Lease”), between the Association and the District, and the terms of a Lease Agreement dated as of February 1, 2003 (the “Lease”) between the Association and the District, (a) the District is leasing the site of the Improvements to the Association, (b) the proceeds of the Series 2003 Certificates have been used to refund the Series 1998 Bonds and refinance the school facilities, and (c) the Association is leasing the Improvements to the District for successive one-year renewal options with the last renewal term ending not later than June 30, 2018, which renewal terms are subject to annual budget appropriations.

In October, 2007, $3,690,000 Lease Participation Certificates were issued by the Trustee pursuant to a First Supplement to the Indenture to provide funds to pay the cost of making renovations and improvements to school facilities of the District. The Series 2007 Certificates are issued on a parity with the Series 2003 Certificates. The Lease was extended to 2028.

The Certificates evidence undivided ownership interests in the right to receive rental payments payable by the District under the Lease. The Certificates are payable solely from the rents, revenues and receipts received under the Lease for the use of the Improvements, from certain proceeds of insurance policies or condemnation awards, from certain reserves and interest earnings on moneys in certain funds held by the Trustee, from money derived from the sale or lease of the Association’s interest in the Facilities or portions thereof and, under certain circumstances, proceeds of a bond insurance policy. Pursuant to the Indenture, the Association pledged and assigned such rents, revenues and receipts and other moneys to the Trustee to permit the transfer of undivided ownership interest in the right to receive rental payments represented by the Certificates and the related interest components.

The following schedule shows the yearly principal and interest requirements for the Certificates:

Fiscal Year Series 2003 Certificates Series 2007 Certificates Total Ended June 30 Principal Interest Principal Interest Debt Service

2010 $190,000 $83,510.00 $100,000 $152,180.00 $525,690.00 2011 200,000 77,240.00 100,000 148,180.00 525,420.00 2012 200,000 70,040.00 115,000 144,180.00 529,220.00 2013 210,000 62,640.00 125,000 139,580.00 537,220.00 2014 225,000 54,660.00 135,000 134,580.00 549,240.00 2015 230,000 45,660.00 140,000 129,180.00 544,840.00 2016 240,000 36,230.00 145,000 123,580.00 544,810.00 2017 250,000 26,150.00 150,000 117,780.00 543,930.00 2018 350,000 15,400.00 155,000 111,780.00 632,180.00 2019 0 .00 165,000 105,425.00 270,425.00 2020 0 .00 170,000 98,660.00 268,660.00 2021 0 .00 180,000 91,690.00 271,690.00 2022 0 .00 190,000 84,310.00 274,310.00 2023 0 .00 205,000 76,520.00 281,520.00 2024 0 .00 220,000 67,910.00 287,910.00 2025 0 .00 240,000 58,670.00 298,670.00 2026 0 .00 245,000 48,590.00 293,590.00 2027 0 .00 260,000 38,055.00 298,055.00 2028 0 .00 625,000 26,875.00 651,875.00 Total $2,095,000 $471,530.00 $3,665,000 $1,897,725.00 $8,129,255.00

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Available moneys in a debt service reserve fund for the Certificates (funded in the amount of

$667,500 at the time of issuance) will be available to make the final payments on such Certificates. The Certificates are payable solely from certain moneys deposited in the Capital Projects Fund from a levy specific to the Capital Projects Fund. The Certificates are not payable from moneys in the District’s Debt Service Fund which are available solely to make payments on the District’s general obligation bonds.

FINANCIAL INFORMATION CONCERNING THE DISTRICT

Accounting, Budgeting and Auditing Procedures

The District follows a cash system of accounting in conformity with the requirements of Missouri law and the Department of Elementary and Secondary Education of the State of Missouri. Under this system, financial data is recorded on a cash basis with revenues and expenses being recognized only as cash is received or disbursed. Receivables, payables and accrued expense are not recorded. Cash transactions have been recorded in the following funds for the accounting of all school moneys:

General (Incidental) Fund (including Free Textbook Fund) Special Revenue (Teachers) Fund

Debt Service Fund Capital Projects Fund

The former Building Fund was eliminated by state statute for the 1993-94 fiscal year during which period all moneys in such fund were accounted for as a part of the General (Incidental) Fund. However, the Missouri General Assembly created a Capital Projects Fund for all districts effective July 1, 1994.

The Treasurer of the District is responsible for handling all moneys of the District and administering the above funds. All moneys received by the District from whatever source are credited to the appropriate fund. Moneys may be disbursed from such funds by the Treasurer only for the purpose for which they are levied, collected or received and all checks must be signed by the President and the Treasurer.

An annual budget of estimated receipts and disbursements for the coming fiscal year is prepared by the Superintendent and is presented to the Board of Education for approval, after a public hearing, prior to August 15. The District’s fiscal year is July 1 through June 30. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes and includes a statement of the rate of levy per hundred dollars of assessed valuation required to raise each amount shown on the budget as coming from District taxes.

The financial records of the District are audited annually by a firm of independent certified public accountants in accordance with generally accepted accounting standards. The audit for the 2008 fiscal year was performed by Jerry Blankenship, C.P.A., Monett, Missouri, a copy of which is included in this Official Statement at Appendix A. A summary of significant accounting policies of the District is contained in the Notes accompanying the financial statements in Appendix A.

Fund Balances Summary

The following Summary Statement of Cash Receipts, Disbursements and Changes in Fund Balances was prepared from the audited financial statements of the District prepared by its independent auditors. The statement set forth below should be read in conjunction with the other financial statements

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and notes appertaining hereto set forth in Appendix A of this Official Statement and the financial statements on file at the District’s office.

Summary Statement of Cash Receipts, Disbursements and Changes in Fund Balances

2008 2007 2006 2005 2004 General (Incidental) Fund Balance—Beginning of Year 2,607,551 2,543,201 1,778,417 1,861,310 2,449,231 Cash Receipts 5,879,358 5,454,528 10,137,276 7,751,418 7,569,756 Cash Disbursement (4,550,601) 4,026,856 4,470,948 4,107,111 4,045,657 Transfers In (Out) (1,409,469) (1,363,321) (4,901,544) (3,727,200) (4,112,019) Balance—End of Year 2,526,840 2,607,537 2,543,201 1,778,417 1,861,310 Special Revenue (Teachers’) Fund Balance—Beginning of Year 206,537 -0- -0- -0- -0- Cash Receipts 5,417,773 4,788,165 28,519 623,957 627,611 Cash Disbursement (6,054,133) 5,369,354 4,464,494 4,351,157 4,275,631 Transfers In (Out) 823,500 787,726 4,435,975 3,727,200 3,648,019 Balance—End of Year 393,677 206,537 -0- -0- -0- Debt Service Fund Balance—Beginning of Year 1,094,602 3,964,990 4,079,154 3,990,658 5,558,327 Cash Receipts 7,923,153 1,130,363 705,144 900,957 1,070,116 Cash Disbursement (1,138,650) 4,000,752 819,307 812,461 2,637,785 Transfers In (Out) 0 0 4,784,298 0 0 Balance—End of Year 7,879,105 1,094,602 3,964,990 4,079,154 3,990,658 Capital Projects (Building) Fund Balance—Beginning of Year 728,644 708,621 4,057,201 7,877,311 9,891,453 Cash Receipts 562,484 398,939 219,471 597,493 546,010 Cash Disbursement (1,026,660) 954,511 4,033,619 4,417,603 3,024,151 Transfers In (Out) 585,969 575,595 465,568 0 464,000 Balance—End of Year 850,437 728,644 708,621 4,057,201 7,877,311 Total Funds Balance—Beginning of Year 4,637,335 7,216,812 9,914,772 13,729,279 17,899,011 Cash Receipts 19,782,768 11,771,995 11,090,409 9,873,825 9,813,493 Cash Disbursement (12,770,044) 14,351,473 13,788,369 13,688,333 13,983,224 Balance—End of Year 11,650,059 4,637,335 7,216,812 9,914,772 13,729,279 Ending Total Fund Balances as Percentage of Total Disbursements 27.54%

29.95%

28.42%

21.03%

22.36% (Incidental & Teachers Funds Only)

*Includes General Fund and Special Revenue Fund only.

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Sources of Revenue

The District finances its operations through the local property tax levy, state sales tax, state aid, federal grant programs and miscellaneous sources. Debt service on general obligation bonds is financed solely through local property taxes. For the 2007-2008 fiscal year, the District’s sources of its revenues were as follows:

Source Amount % Local Revenue Property Taxes $6,185,006 31.26% Proposition “C” Sales Tax1 $1,052,980 5.32% Other $636,738 3.22% County Revenue: Railroad & Utility Property Taxes2 $153,315 0.77% Fines, Forfeiture & Other $40,934 0.21% State Revenue $3,605,597 18.23% Federal Revenue $1,160,771 5.87% Other Revenue $6,947,427 35.12% Total Revenue $19,782,768 100.00%

1 Under the provisions of an initiative petition adopted by the voters of Missouri on November 2, 1982 (“Proposition C”), revenues generated

by a 1% state sales tax are credited to a special trust fund for school districts and are deemed to be “local” revenue. 2 For school taxation purposes, all state assessed railroad and utility property within a county is taxed uniformly at a rate determined by

averaging the tax rates of all school districts in the county. No determination is made of the assessed value of such property that is physically located within the bounds of each school district. Such tax collections for each county are distributed to the school districts within that county according to a formula based in part on total student enrollments in each district and in part on the taxes levied by each district.

History of State Funding

During its 1993 regular session, the Missouri General Assembly adopted Senate Bill 380 which provided an estimated $315 million state income tax increase to fund public education and revised the formula for the distribution of state aid to education. Senate Bill 380, among other things, established a minimum property tax levy for operating purposes for each school district of $2.75 per $100 assessed valuation (the previous minimum was $2.00 per $100 assessed valuation) in order for such school districts to receive increases in State aid for the 1994-95 school year above the amount received for the 1993-94 school year. Senate Bill 380 also has a “hold harmless” provision which guarantees that no school district will receive less State aid on a per pupil basis than it received during the 1992-93 school year. The revised formula for granting State aid provides for increasing State aid as a school district’s levy for school purposes (Teachers’ and Operational Funds) increases.

The General Assembly’s action was in response to a January 15, 1993 ruling by the Circuit Court of Cole County, Missouri, that the prior formula for the distribution of state aid was both inadequate and inequitable and therefore violated the Missouri Constitution. That decision was appealed to the Missouri Supreme Court. Senate Bill 380 provides that if the Missouri Supreme Court reverses the lower court ruling and instead holds that the prior state aid distribution formula is constitutional, a proposition to reinstate the prior state income tax rates must be submitted for approval by the voters of the State of Missouri. In such case, if the voters approve the reinstatement of the prior state income tax rates, the reforms enacted by Senate Bill 380 would be terminated.

On June 21, 1994, the Missouri Supreme Court dismissed the appeal for procedural reasons and remanded the case back to the Circuit Court without discussing the merits of any issues raised or decided by the Circuit Court. It is not known at this time what particular effect the provisions of Senate Bill 380, or any further rulings of the Circuit Court will have on the District.

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During its 1994 regular session, the Missouri General Assembly adopted Senate Bill 676 to minimize State aid to school districts based on capital outlays. After a transition period, this objective will be achieved by requiring school districts to pay for capital outlays through either (a) the issuance of general obligation bonds (which will continue to be paid from a Debt Service Fund levy) or (b) a newly created Capital Projects Fund (which ultimately will be paid through a Capital Projects Fund levy). Under Senate Bill 676, school districts will not receive State aid based on either the tax levies for Debt Service Fund or the Capital Projects Fund.

Senate Bill 676 requires each school district, prior to setting tax rates for the Teachers’ and Incidental Funds, to annually set the tax rate for the Capital Projects Fund as necessary to meet the expenditures of the Capital Projects Fund for capital outlays (including payments on lease purchase obligations), except that the tax rate in the Capital Projects Fund shall not require the reduction of the equalized combined tax rates for the Teachers’ and Incidental Funds to be less than the greater of $2.75 or the 1993 tax rate as used for State aid purposes ($2.75 for the District). In addition to funds generated from the Capital Projects Fund levy, each school district may, under certain conditions and subject in certain instances to limitations prescribed by statute, transfer moneys from the Incidental Fund to the Capital Projects Fund for capital outlays including lease payments and for categorical transfers for transportation and vocational-technical purposes.

In January 2004, the Committee for Educational Equality (the “CEE”) filed a lawsuit against the State of Missouri in the Circuit Court of Cole County, claiming that Missouri’s public education finance system has become unconstitutional. According to the lawsuit, the CEE is a nonprofit corporation whose members include 243 of the 524 school districts in the State. The CEE lawsuit claims that the current state aid distribution system provides inadequate and unfairly distributed funding.

Changes in State Funding Distribution

The 93rd General Assembly recently passed Senate Bill No. 287 in an effort to respond to constitutional issues challenging the adequacy and fairness of the state aid distribution system. The Governor signed the bill in June, 2005. For the most part the Act became effective July 1, 2006.

The state’s former education formula described above was essentially an equalized tax-rate driven formula, meaning that the formula provided a certain amount of money per student, per penny of tax rate. The Act seeks to transition the state away from this tax-rate driven philosophy to a formula that is primarily student-needs based. The new formula will be phased in over the next seven years.

The new formula requires the Department of Elementary and Secondary Education (“DESE”) to calculate a “state adequacy target”. The adequacy target amount is the minimum amount of funds a district needs in order to educate each student. The state adequacy target will be calculated by DESE every two years using the most current list of high performing districts. The target number will not decrease due to any such recalculation. DESE has established the state adequacy target for the 2008-2009 fiscal year at $6,117.

The formula assigns additional weight to districts’ students who qualify for free and reduced lunch, receive special education services, or possess limited English language proficiency. Any district with student populations above the threshold percentages in any of the weighted characteristic areas as identified by DESE will be assigned additional “weight” for the number of the district’s students above the threshold amounts. These additional weights will be added to the district’s student population in order to arrive at that district’s weighted average daily attendance.

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Further, the Act contains a proxy variable for the relative purchasing power of a dollar, the dollar value modifier. The modifier is an index corresponding to the wage-per-job (on a regional basis) that captures 15% of the percent deviation from the state’s median wage-per-job.

A district’s state aid calculation will be: The district’s weighted average daily attendance multiplied by the state adequacy target. This figure may be adjusted upward by the dollar value modifier. From this total, the district’s “local effort” will be subtracted, and if this number is above zero, this number is the district’s state aid payment. If the number is below zero, then the district will receive no less revenue on a per weighted daily attendance basis than the district received in the 2005-2006 school year. This “hold harmless” calculation is adjusted to reflect usage of weighed average daily attendance. The dollar value modifier is also applied to the hold-harmless payment, and such application is phased in over a three-year period.

During the phase-in of the new formula, the state adequacy target may not be adjusted downward. During the phase-in period, districts with significant decreases in gifted and summer school programs during the phase-in will have funds corresponding to those decreased levels reduced from their current-year payments.

The local revenue figure utilized in a district’s state aid calculation is the amount of locally generated revenue the district would have received in fiscal year 2005 if its operating levy was set at $3.43. The $3.43 amount is called the performance levy. In every year subsequent to the first-year calculation, a district’s “local effort” amount will be frozen, except for any growth in locally collected fines, so that any growth in local revenue collections will be retained by the district and not used to offset state aid payments.

The existing formula comprises several categorical aid streams: transportation continues, unaltered, as do the career ladder, vocational education, and educational and screening programs. The “at-risk,” gifted, special education, and remedial reading categoricals are folded into the district’s base amount, along with the cigarette tax and free textbook moneys. Revenues from gaming, which will be deposited into the Classroom Trust Fund, also established by the Act, will be distributed on an average-daily-attendance basis.

Because many elements affecting the formula will be determined over the seven year phase-in period, it is difficult to assess the precise affects of the new formula on a particular district at any given point in time other than to say that the hold harmless provisions will protect districts from a reduction in state revenue.

Unsatisfied with changes to the formula under SB 287, the CEE continues to process the litigation.

Tax Limitation Provisions

An amendment to the Missouri Constitution popularly known as the Hancock Amendment, approved in 1980, places limitations on total state revenues and the levying or increasing of taxes without voter approval. The Missouri Supreme Court has interpreted the definition of “total state revenues” to exclude voter-approved tax increases such as the one percent (1%) state sales tax for education under Proposition C. The Amendment also includes provisions for rolling back tax rates. If the assessed valuation of property, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the general price level from the previous year, the maximum authorized current levy applied thereto in each political subdivision must be reduced to yield the same gross revenue from existing property, adjusted for changes in the general price level, as could have been collected at the

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existing authorized levy on the prior assessed value. The limitation on local governmental units does not apply to taxes imposed for the payment of principal and interest on general obligation bonds.

Risk Management

The District maintains various policies of insurance providing coverage which includes casualties to the District’s facilities and general liability insurance, which policies are subject to certain deductible clauses.

Employee Retirement and Pension Plans

The District contributes to the state-wide retirement systems created by Chapter 169 of the Revised Missouri Statutes to provide retirement allowances for substantially all of its employees. Teachers are covered by The Public School Retirement System of Missouri, and non-teachers are covered by The Nonteacher School Employee Retirement System of Missouri. The system includes most of the school districts in Missouri, and is administered by a five-member Board of Trustees, consisting of two trustees appointed by the State Board of Education, two trustees elected by the members of the retirement system, and the State Commissioner of Education. Both systems are advance funded plans which are required by statute to remain in actuarial balance.

The District’s annual contributions are based upon amounts recommended by a consulting actuary not to exceed rates established by statute. The maximum contributions which under present law can be required of the District are 12.5% of teacher’s salaries and 6.0% of nonteacher’s salaries. The actual contribution rates for the fiscal year ended June 30, 2008 are 12.5% and 6.0% of salaries, respectively, with the total cost to the District for year ending June 30, 2008, being $742,313.

Contribution rates provide for funding the systems’ liability for past service cost. However, the liability for past service cost is not allocable to individual school districts.

Non-certified employees of the district also participate in the Social Security retirement plan. There are no unfunded pension plans covering District employees.

Employee Relations

Teachers in the District belong to the Missouri State Teachers Association, the Missouri NEA or are not affiliated. The Board of Education makes the final decisions on all matters of policy, salaries and working conditions without fact finding, mediation or arbitration.

PROPERTY TAX INFORMATION CONCERNING THE DISTRICT

Property Valuations

Assessment Procedure. All taxable real and personal property within the District is assessed annually by the County Assessor. Missouri law requires that personal property be assessed at 33-1/3% of true value and that real property be assessed at the following percentages of true value:

Residential real property ...................................................................................19% Agricultural and horticultural real property ......................................................12% Utility, industrial, commercial, railroad and all other real property .................32%

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A general reassessment of real property occurred statewide in 1985. In order to maintain equalized assessed valuations following this reassessment, the state legislature adopted a maintenance law in 1986. On January 1 in every odd-numbered year, each County Assessor must adjust the assessed valuation of all real property located within the county in accordance with a two-year assessment and equalization maintenance plan approved by the State Tax Commission.

The assessment ratio for personal property is generally 33 1/3% of true value. However, subclasses of tangible personal property are assessed at the following assessment percentages: grain and other agricultural crops in an unmanufactured condition, 0.5%, livestock, 12%; farm machinery; 12%; historic motor vehicles, 5%; and poultry, 12%.

The County Assessor is responsible for preparing the tax roll each year and for submitting the tax roll to the Board of Equalization. The County Board of Equalization has the authority to adjust and equalize the values of individual properties appearing on the tax rolls.

Current Assessed Valuation. The following table shows the total assessed valuation and the estimated actual valuation, by category, of all taxable tangible property situated in the District, excluding state assessed railroad and utility property, according to the assessment of January 1, 2008.

Type of Property

Total Valuation

Assessment Rate

Total Estimated

Actual Valuation*

% of

Actual Valuation

Real Residential 90,233,010 19.00% 474,910,579 68.49% Agricultural 530,920 12.00% 4,424,333 0.64 Commercial 37,022,010 32.00% 115,693,781 16.68 Total Real 127,785,940 595,028,694 Personal 32,786,768 33.33% 98,370,141 14.19 State Assessed Utility 0 33.33% 0 0.00 Total Real & Personal 160,572,708 693,398,835 100.00 * Assumes all personal property is assessed at 33 1/3%; because certain subclasses of tangible personal property are assessed at less than 33

1/3%, the estimated actual valuation for personal property would likely be greater than that shown above. See “Assessment Procedure” discussed above.

For school taxation purposes, all state assessed railroad and utility property within a county is taxed uniformly at a rate determined by averaging the tax rates of all school districts in the county. Such tax collections for each county are distributed to the school districts within that county according to a formula based in part on total student enrollments in each district and in part on the taxes levied by each district. Under this method of distributing tax collections from state assessed railroad and utility property, it is unnecessary to determine the assessed value of such property that is physically located within the bounds of each school district.

History of Property Valuations. The total assessed valuation of all taxable tangible property situated in the District (excluding state assessed railroad and utility property) according to the assessments of January 1 in each of the following years has been as follows:

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Year

Total Assessed Valuation

Assessed Valuation Increase

% Increase From Prior Year

2008 $160,572,708 $16,901,673 11.17% 2007 143,671,035 21,436,853 17.54 2006 122,234,182 8,443,583 7.42 2005 113,790,599 9,633,870 9.25 2004 104,156,729 7,643,528 7.92 2003 96,513,201 5,116,847 5.60 2002 91,396,354 2,316,920 2.60

Property Tax Levies and Collections

Property taxes are levied and collected for the District by each County, for which such County receives a collection fee of 1.5% of the gross tax collections made.

The District is required by law to prepare an annual budget, which includes an estimate of the amount of revenues from all sources for the budget year, including an estimate of the amount of money required to be raised from property taxes and the tax levy rates required to produce such amounts. The budget must also include proposed expenditures and must state the amount required for the payment of interest, amortization and redemption charges on the District’s debt of the ensuing budget year. Such estimates are based on the assessed valuation figures provided by the County Clerk. The District must fix its ad valorem property tax rates and certify them to the County Clerk not later than September first for entry in the tax books.

The County Clerk receives the county tax books from the County Assessor, which set forth the assessments of real and personal property. The County Clerk enters the tax rates certified to him by the local taxing bodies in the tax books and assesses such rates against all taxable property in the District as shown on such books. The County Clerk forwards the tax books by October 31 to the County Collector, who is charged with levying and collecting taxes as shown therein. The County Collector extends the taxes on the tax rolls and issues the tax statements in early December. Taxes are due by December 31 and become delinquent if not paid to the County Collector by that time. All tracts of land and city lots on which delinquent taxes are due are charged with a penalty of eighteen percent of each year’s delinquency. All lands and lots on which taxes are delinquent and unpaid are subject to sale at a public auction in August of each year.

The County Collector is required to make disbursements of collected taxes to the District each month. Because of the tax collection procedure described above, the District receives the bulk of its moneys from local property taxes in the months of December, January and February.

Tax Rates

Debt Service Levy. Once indebtedness has been approved by requisite number of the voters voting therefor and bonds are issued, the District is required under Article VI, Section 26(f) of the Missouri Constitution to levy an annual tax on all taxable tangible property therein sufficient to pay the interest and principal of the indebtedness as they fall due and to retire the same within 20 years from the date of issue. The Board of Education may set the tax rate for debt service, without limitation as to rate or amount, at the level required to make such payments. The District’s debt service levy for the 2008-2009 fiscal year is $0.8097 per $100 of assessed valuation.

Operating Levy. The operating levy (consisting of all ad valorem taxes levied except the debt service levy) cannot exceed the “tax rate ceiling” for the current year without voter approval. The tax rate ceiling, determined annually, is the rate of levy which, when charged against the newly-received assessed

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valuation of the District for the current year, excluding new construction and improvements, will produce an amount of tax revenues equal to tax revenues for the previous year increased by 5% or the Consumer Price Index, whichever is lower; however, the District cannot be required to reduce its operating levy below the minimum rate required to qualify for the highest level of state aid (currently $2.75). Without the required percentage of voter approval, the tax rate ceiling cannot at any time exceed the greater of the tax rate in effect in 1984 or the most recent voter-approved tax rate. For fiscal year 2008-2009, the tax rate ceiling is $3.0803 per $100 of assessed valuation. The tax levy for debt service on the District’s general obligation bonds is exempt from the calculations of and limitations upon the tax rate ceiling. Under an amendment to Article X, Section 11(c) of the Missouri Constitution approved by Missouri voters on November 3, 1998, any increase in the District’s operating levy above $2.75 must be approved by a majority of the voters voting on the proposition and any increase above $6.00 must be approved by two-thirds of the voters voting on the proposition.

The operating levy was reduced in 1983 and subsequent years prior to the 1994-95 fiscal year pursuant to the initiative process which approved a state sales tax for school purposes (“Proposition C”). Under Proposition C, after determining its budget and the levy rate needed to produce required revenues to fund said budget, a school district must reduce its operating levy by an amount sufficient to decrease the revenues it would have received therefrom by an amount equal to approximately 50% of the estimated revenues to be received through Proposition C during the year.

Under terms of Senate Bill No. 380 enacted by the Missouri General Assembly during its 1993 legislative session, school districts may submit propositions to voters to forego all or a part of the reduction in the operating levy which would otherwise be required under terms of Proposition C.

History of Tax Levies. The following table shows the District’s tax levies per $100 of assessed valuation for each of the following years:

Year

Teacher’s Fund

Incidental Fund

Capital Projects Fund

Debt Service Fund

Total Levy

2008-09 $0.0000 $3.0803 $0.3500 $0.8097 $4.2400 2007-08 0.0000 3.0303 0.3500 0.8597 4.2400 2006-07 0.0000 3.2804 0.2800 0.6796 4.2400 2005-06 0.0000 3.5204 0.1400 0.5796 4.2400 2004-05 0.2100 2.8100 0.4200 0.8000 4.2400

Tax Collection Record

The following table set forth tax collection information for the District for the last five years.

Fiscal Year

Total

Total Taxes

Current & Delinquent Taxes Collected

Ended June 30 Levy Levied Amount % 2008 4.2400 $6,219,373 $6,185,006 99.45% 2007 4.2400 5,215,807 5,160,569 98.94 2006 4.2400 4,795,303 4,694,563 97.90 2005 4.2400 4,380,027 4,366,752 99.70 2004 4.2400 4,111,557 4,005,391 97.42 2003 3.9900 3,646,715 3,633,734 99.64

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Major Property Taxpayers

The following table sets forth the taxpayers owning property with the greatest amount of assessed valuation within the District based on the valuation of real property owned as of January 1, 2007, with taxes on such property due by December 31, 2008. The District has not independently verified the accuracy or completeness of such information.

Owner

Assessed Valuation

1. Blue Green/Big Cedar Vacations LLC $10,973,310.00 2. Big Cedar LP 2,599,740.00 3. Lowes Home Centers Inc 1,279,780.00 4. White Mountain Apartments 1,500,230.00 5. White River Valley Electric Co 1,300,730.00 6. Big Cedar LLC 803,920.00 7. Boothe James David 696,310.00 8. Ashley Park LLC 587,400.00 9. Braden Dane 575,920.00

10. Harter House-Kimberling City LLC 513,930.00 Total $20,831,270.00 Source: Taney and Stone County Assessors Offices

LEGAL MATTERS

Legal Proceedings

As of the date hereof, there is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the District or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act in connection with the authorization, issuance and sale of the Bonds, or the constitutionality or validity of the bonds or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof, or which might affect the District’s ability to meet its obligations to pay the Bonds.

Approval of Legality

All legal matters incident to the authorization and issuance of the Bonds are subject to the approval of Bryan Cave LLP, Kansas City, Missouri, Bond Counsel. Bond Counsel has participated in the preparation of this Official Statement, but the factual and financial information appearing herein has been supplied or reviewed by certain officials of the District and a certified public accountant, as referred to herein, and Bond Counsel expresses no opinion as to the accuracy or sufficiency thereof except for the matters appearing in the sections of this Official Statement captioned “THE BONDS,” “LEGAL MATTERS – Approval of Legality” and “TAX MATTERS.”

TAX MATTERS

Tax Opinion of Bond Counsel

Federal Tax Exemption. In the opinion of Bryan Cave LLP, Bond Counsel, under existing law, the interest on the Series 2009B 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

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individuals and corporations. It should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that the District comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), 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 District has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 2009B Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds.

The Series 2009B Bonds are “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such financial institution’s interest expense allocable to interest on the Series 2009B Bonds.

Bond Counsel is not rendering any opinion with respect to treatment of the interest on the Series 2009C Bonds for federal income tax purposes, and such interest is expected to be included in gross income for federal income tax purposes.

Missouri Tax Exemption. In the opinion of Bond Counsel, under existing law and assuming compliance with certain requirements of the Internal Revenue Code of 1986, as amended, interest on the Bonds (including any original issue discount properly allocable to the owner thereof) is excluded from gross income for Missouri income tax purposes.

No Other Opinions. Bond Counsel expresses no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds.

Other Tax Consequences

Prospective purchasers of the Series 2009B Bonds should be aware that there may be tax consequences of purchasing the Series 2009B Bonds other than those discussed under the above caption “Tax Opinion of Bond Counsel” including the following:

(1) Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Series 2009B Bonds, except with respect to certain financial institutions (within the meaning of Section 265(b)(5) of the Code);

(2) with respect to insurance companies subject to the tax imposed by Section 831 of the Code, Section 832(b)(5(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest on the Series 2009B Bonds;

(3) interest on the Series 2009B Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Section 884 of the Code;

(4) passive investment income, including interest on the Series 2009B Bonds, may be subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year, if greater than 25% of the gross receipts of such Subchapter S corporation is passive investment income; and

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(5) Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest on the Series 2009B Bonds.

Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their own tax advisors as to the applicability of these tax consequences.

RATINGS

It is anticipated that Standard & Poor’s Ratings Group, a Division of McGraw-Hill, Inc. (“S&P”), will assign the Bonds the rating of “AA+” conditioned upon the execution and delivery of the Direct Deposit Agreement described under the caption “THE BONDS – Security and Sources of Payment for the Bonds; Direct Deposit of State Aid Payments” hereof. In addition, S&P has assigned the Bonds an underlying rating shown on the cover page based on S&P’s evaluation of the credit worthiness of the District without consideration that payment on the Bonds are to be made pursuant to the Direct Deposit Program.

At present, S&P maintains four categories of investment grade ratings – AAA, AA, A and BBB. Under S&P criteria, debt rated “AA” has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree; debt rated “A” has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects-of changes in circumstances and economic conditions than “AAA”- and “AA”-rated debt. Ratings reflect only the view of S&P at the time such ratings are given, and the District and the Underwriter make no representation as to the appropriateness of such ratings or that such ratings will not be changed, suspended or withdrawn.

S&P relies on the District, accountants and other experts for the accuracy and completeness of the information submitted in connection with the ratings. Ratings are not “market” ratings nor recommendations to buy, hold or sell the Bonds, and such ratings may be changed, suspended or withdrawn as a result of changes in, or unavailability of, information. Any downward revision, suspension or withdrawal of ratings could have an adverse effect on the market price and marketability of the Bonds. An explanation of the significance of ratings may be obtained only from S&P at the following address: Standard & Poor’s Corporation, 25 Broadway, New York, New York 10004.

SECONDARY MARKET DISCLOSURE

The District agrees in the Bond Resolution and the Continuing Disclosure Certificate for the benefit of the owners of the Bonds to take all action necessary and within its power and authority to satisfy the requirements of Rule 15c2-12 of the Securities and Exchange Commission (“Rule 15c2-12”) to the extent applicable to the District and the Bonds to enable the Underwriter to comply with Rule 15c2-12 and municipal securities dealers to make a market or trade in the Bonds. To this end, the District has covenanted and agreed to provide to certain national repositories and any state information repository, if any, the audited financial statements of the District and certain financial and operating data of the District within 180 days after the end of each fiscal year of the District. The financial statements are required to be audited by the District’s independent auditors. Operating data to be provided by the District shall be in substantially the form and content contained in this Official Statement, updated for the fiscal year then ended. The District has also agreed to provide prompt notice to certain national repositories or the Municipal Securities Rulemaking Board (the “MSRB”) and to any State information repository, if any, of the occurrence of certain events with respect to the Bonds.

Any or all of the financial information or operating data to be provided by the district may be incorporated by reference from other documents, including official statements of debt issues with respect to the District that have been filed with each national repository or the Securities and Exchange

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Commission, and in the case of a final official statement, that is available from the MSRB. The District has agreed to identify in each annual report each document incorporated by reference and the source from which it is available.

The District reserves the right to modify its obligations as described herein from time to time but consistent with the requirements of Rule 15c2-12. The foregoing obligations of the District are enforceable by any owner of any of the Bonds by action in specific performance. The failure by the District to comply with any such requirements shall not constitute an event of default under the Resolution of the Bonds.

MISCELLANEOUS

Underwriting

George K. Baum & Company (the “Underwriter”) has agreed, subject to certain conditions, to purchase the Bonds from the District at a price equal to 99.80% of the principal amount of the Bonds plus original issue premium of $113,841.13 and accrued interest thereon from the date of the Bonds to the date of payment and delivery. The Underwriter is purchasing the Bonds from the District for resale in the normal course of the Underwriter’s business activities. The Underwriter will sell certain of the Bonds at a price greater than such purchase price, as shown on the cover hereof. The Underwriter reserves the right to offer any of the Bonds to one or more purchasers on such terms and conditions and at such price or prices as the Underwriter, in its discretion, shall determine.

The Underwriter has read and participated in the preparation of certain portions of this Official Statement and has supervised the compilation and editing thereof. The Underwriter has not, however, independently verified the factual and financial information contained in this Official Statement and, accordingly, expresses no view as to the sufficiency or accuracy thereof.

Certification and Other Matters Regarding Official Statement

Information set forth in this Official Statement has been furnished or reviewed by certain officials of the District, certified public accountants, and other sources, as referred to herein, which are believed to be reliable. Any statements made in this Official Statement involving matters of opinion, estimates or projections, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates or projections will be realized.

Simultaneously with the delivery of the Bonds, the President of the Board of Education of the District, acting on behalf of the District, will furnish to the Underwriter a certificate which shall state, among other things, that to the best knowledge and belief of such officer, this Official Statement (and any amendment or supplement hereto) as of the date of sale and as of the date of delivery of the Bonds does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements herein, in light of the circumstances under which they were made, not misleading in any material respect.

The form of this Official Statement, and its distribution and use by the Underwriter, has been approved by the District. Neither the District nor any of its officers, directors or employees, in either their official or personal capacities, has made any warranties, representations or guarantees regarding the financial condition of the District or the District’s ability to make payments required of it; and further, neither the District nor its officers, directors or employees assumes any duties, responsibilities or obligations in relation to the issuance of the Bonds other than those either expressly or by fair implication imposed on the District by the Bond Resolution.

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Additional Information

Additional information regarding the District or the Bonds may be obtained from the District, 1798 State Highway BB, Hollister, Missouri 65672, (417) 243-4005, or from the Underwriter, George K. Baum & Company, 4801 Main Street, Suite 500, Kansas City, Missouri 64112, Attention: Richard G. Bartow (816) 474-1100.

HOLLISTER REORGANIZED SCHOOL DISTRICT NO. R-5 OF TANEY COUNTY, MISSOURI By: s/Lisa Westfall President of the Board of Education

960268 A-1

APPENDIX A

Excerpt of Financial Statements with Independent Auditor’s Report for Hollister Reorganized School District No. R-5

for the Fiscal Year Ended June 30, 2008

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