1300 Clay Street, Suite 1000, Oakland, CA phone fax A Division of Zions First National Bank Peralta Community College District Presentation to the Board of Trustees June 2, 2015

Abbreviated Timeline Peralta Community College District | page 1

2005 Bond Structure Peralta Community College District | page 2.

2006 Restructuring  In October 2006, the District purchased from investors the 2006, 2007, and 2008 maturities and restructured $8.8 million as convertible capital appreciation bond due in The 2009 and 2010 maturities were left unchanged. Peralta Community College District | page 3 Original Structure MaturityPrincipal (August 1)AmountInterest RatePrice 2006$1,725, %100% 2007$3,180, $4,110, $5,340, $5,660, Amended Structure MaturityInitialAccreted (August 1)Principal AmountPrincipalInterest Rate 2049$8,800,000$10,688, %

2006 Swaps  District entered into six forward starting swaps in 2006 to create a synthetic fixed rate financing. Presentation to the Las Lomitas Elementary School District Board of Trustees | page 4 AmortizingEffective Fixed Rate SeriesNational ($MM)DateMaturity(Act/360) B-1$ /5/20108/5/ % B /5/20158/5/ % B /5/20208/5/ % B /5/20258/5/ % B /5/20318/5/ % B /5/20398/5/ % Total notinal$

2009 Restructuring  In February 2009, the District structured the B-1 ARS tranche as fixed rate bond. The 2005 current interest rate maturities of 2009 and 2010 were refunded into the 2009 financing. Peralta Community College District | page 5 Amended Structure MaturityPrincipal AmountInterest RatePrice (August 1) 2010$3,660, ,785, ,120, ,720, ,440, Original Structure MaturityPrincipal (August 1)AmountInterest Rate Price 2009$5,340, ,660, ,590,

2011 Restructuring  In October 2011, the District refunded and restructured the 2009 bonds to smooth debt service payments. Peralta Community College District | page 6 Amended Structure Maturity (Aug1)Principal AmountInterest RatePrice 20131,595, % ,590, ,265, ,095, ,270, ,695, ,465, ,570, ,120, ,400, ,965, ,005, ,825, ,645, Original Structure Maturity (Aug 1)Principal AmountInterest RatePrice 2010$3,660, ,785, ,120, ,720, ,440,

Prior Financing Review Peralta Community College District| page 7  December 2005Issued $153.7 million in Bonds, including convertible CABs to fund $150 million of Retiree Health Benefit Costs.  October 2006Through an exchange and modification of bonds, $8.8 million of bonds originally maturing in were extended through  November 2006Entered into six fixed rate forward starting interest rate swaps (receiving LIBOR & paying fixed rate)  February 2009Restructured remaining 2005 fixed-rate bonds maturing in and B-1 Tranche of ARS into fixed-rate bonds maturing from  October 2011Restructured February 2009 transaction, maturities from to mature from

Current Situation Peralta Community College District | page 8  The District’s B-2 Tranche if fully accreted at $38, on August 5, 2015  B-2 Tranche would automatically covert into Auction Rate Securities (ARS)  ARS market remains dormant with high interest rates  Investors of B-2 Tranche would receive the default rate of 17% of converted to ARS  Indenture requires several steps to convert B-2 into variable rate bond.  B-2 Interest rate swap starts August 5, 2015  In the current market, the District would pay a fixed rate of 5.158% and receive LIBOR (currently about 0.20%) from Morgan Stanley

Options  Convert ARS to Fixed rate bonds  Twenty year maturity  Current interest Bonds  Callable in 10 years  With or without swap  Termination is approximately equal to five week payments over 5 years  Convert ARS to Variable Rate Bonds with 5 year maturity  With credit enhancement Letter of Credit  Highest credit rating  Callable  With out credit enhancement  No rating  Private Placement Presentation to the Las Lomitas Elementary School District Board of Trustees | page 9

Plan of Finance Peralta Community College District | page 10  Convert B-2 tranche of ARS into variable rate bonds  Variable rate bonds (VRDOs) are an alternative for the ARS  VRDOs require credit enhancement and a broker-dealer to reset the interest rates on the bonds on a weekly basis  Callable on a weekly basis and will provide flexibility for the District to redeem or restructure bonds if needed  Swap in place to mitigate some interest rate expense

Approval of Financing Peralta Community College District | page 11  The District is approving a resolution that authorizes the process to convert ARS into a variable rate bond  The District is also approving:  Form of the Reimbursement Agreement with Barclays Bank plc  Supplemental Indenture to allow the financing mechanics to accomplish this financing  Going forward, the District will approve an offering disclosure document (Official Statemetn) as well as a remarketing agent agreement at a future meeting