1. June 11, 2015 Updates on Measure P & Measure M Bond Programs

2. Overview of Measure P & Measure M Bond Programs 1 Measure P Bond Program 1.Approved by Voters on November 5, 2002 2.Passage Rate: 62.8% 3.$190,000,000 Program Size –Series A: $50,000,000 Issued in May 2003 –Series B: $20,000,000 Issued in February 2004 –Series C: $100,000,000 Issued in September 2006 –Series D: $4,999,797 Issued in June 2009 –Series E: $15,000,000 Issued in June 2009 –No Authorized but Unissued Bonds Remaining 4.Bond Refinancings: –Series A and Series B Bonds Refinanced in 2005 –Portion of Series C Bonds Refinanced in 2013 5.Estimated Tax Rate: $19.55 per $100,000 of Assessed Valuation 6.Legal Tax Rate Limit: $25.00 per $100,000 of Assessed Valuation Measure M Bond Program 1.Approved by Voters on February 5, 2008 2.Passage Rate: 67.0% 3.$500,000,000 Program Size –Series A:$140,000,000 Issued in December 2008 –Series B: $73,102,389 Issued in June 2009 –Series C: $45,210,000 Issued in June 2009 –$241,687,611 Authorized but Unissued Bonds Remaining 4.Bond Refinancings: –Series A Bonds Refinanced in 2013 5.Estimated Tax Rate: $19.80 per $100,000 of Assessed Valuation 6.Legal Tax Rate Limit: $25.00 per $100,000 of Assessed Valuation

3. Tax Rate Performance for Measure P & Measure M 2 TaxActual YearTotalAnnualTax Rate EndingAssessed ValueChangePer $100,000 2004$32,608,728,6588.80%$16.90 2005$35,856,470,6429.96%$18.90 2006$40,905,198,74814.08%$16.60 2007$47,873,839,48417.04%$19.50 2008$55,146,318,13515.19%$12.70 2009$58,074,704,2045.31%$39.30 2010$54,415,455,052-6.30%$28.00 2011$51,323,415,499-5.68%$46.70 2012$51,148,493,296-0.34%$37.30 2013$51,638,905,1090.96%$45.90 2014$52,916,344,0962.47%$41.90 2015$56,190,405,7166.19%$39.30 For Measure P, average tax rate has been $19.04 as compared to Tax Rate Statement projection of $19.55 For Measure M, average tax rate has been $19.21 as compared to Tax Rate Statement projection of $19.80 Measure P Only Measure P & M Combined

4. Measure P Refinancing Opportunity

5. Overview of Measure P Refinancing Opportunity 4  Similar to Refinancing a Home Mortgage (High Interest Rates  Low Interest Rates)  Average Interest Rate: 5.00% on Old/Refunded Bonds vs. estimated 3.75% on New/Refunding Bonds (1)  Does NOT Increase Length of Old Bonds (No Extension of Bond Term)  Current Estimate of Total Savings to Local Taxpayers (Net of Costs): $8,237,002 (1), Subject to Market Interest Rate Fluctuations  All Transaction Fees are Contingent and Paid from Bond Proceeds  Length of Time Required to Complete: 60-90 Days (1) Calculations are based on estimated market conditions as of May 15, 2015; Preliminary, subject to change.

6. Series C Bond Sale Now Historical Interest Rates Since Issuance of Measure P Series C Bonds 5

7. Debt Service Comparison & Estimated Savings (1) (1) Calculations are based on estimated market conditions as of May 15, 2015; Preliminary, subject to change. 6

8. Measure M Update

9. History of District Assessed Valuation Source: California Municipal Statistics, Inc. 8 Fiscal Year EndingTotal Assessed ValuationAnnual Change 1993 $23,206,392,405 1994 $24,179,111,2224.19% 1995 $23,958,728,599-0.91% 1996 $24,311,524,3971.47% 1997 $24,575,495,9101.09% 1998 $24,792,299,8770.88% 1999 $25,365,160,9042.31% 2000 $25,642,536,6101.09% 2001 $26,559,515,8913.58% 2002 $27,966,782,8205.30% 2003 $29,972,325,4937.17% 2004 $32,608,728,6588.80% 2005 $35,856,470,6429.96% 2006 $40,905,198,74814.08% 2007 $47,873,839,48417.04% 2008 $55,146,318,13515.19% 2009 $58,074,704,2045.31% 2010 $54,415,455,052-6.30% 2011 $51,323,415,499-5.68% 2012 $51,148,493,296-0.34% 2013 $51,638,905,1090.96% 2014 $52,916,344,0962.47% 2015 $56,190,405,7166.19% Average Compound Growth Rates 5-Year0.64% 10-Year4.59% 15-Year5.37% 20-Year4.35% 22-Year4.10% Highest 5-Year Period (2003-2008) 12.97% Lowest 5-Year Period (2009-2014) -1.84% Highest 5-Year Growth Period Lowest 5-Year Growth Period

10. Types of General Obligation Bonds 9 General obligation bonds are generally issued as either current interest bonds or capital appreciation bonds  Current Interest Bonds (“CIBs”) –Interest Paid Semi-Annually –Principal Paid at Maturity  Capital Appreciation Bonds (“CABs”) –Interest Paid at Maturity –Principal Paid at Maturity CABs carry higher interest rate and has interest that accretes or compounds

11. AB 182 Overview 10 AB 182 became effective on January 1, 2014  Establishes a maximum debt service repayment ratio for each bond series of 4 to 1  Allows the maximum financing term for current interest bonds (“CIBs”) to remain at 40 years  Limits the maximum financing term for capital appreciation bonds (“CABs”) to 25 years  Limits the maximum interest rate for CABs to 8%  Requires CABs be subject to redemption after 10 years  Requires two consecutive Board meetings (information and action) if financing utilizes CABs

12. Measure M Series D Financing Overview 11 Assumptions:  Annual AV Growth Rate:  2015-16: 3.00%  2016-17:4.00%  2017-18 and thereafter:4.10%  Average Interest Rate:4.50% (1)  Compliant with AB 182 Estimated Series D Issuance Amount:  $36,332,486 Estimated Future Tax Rate (Per $100K of AV):  $25.00 (1) Calculations are based on estimated market conditions as of May 15, 2015; Preliminary, subject to change.

13. Sample Financing Timeline June 11, 2015Presentation to Board Regarding Refunding and Series D Financing Plans District Board Meeting to Discuss Bond Financings as Information Item Week of June 29, 2015Meetings with Credit Rating Agencies Week of July 6, 2015Receipt of Bond Ratings July 9, 2015District Board Meeting to Approve Refunding and Series D Bond Financings Week of July 20, 2015Sale of Refunding and Series D Bonds Week of August 3, 2015Closing of Refunding and Series D Bonds 12

14. Disclaimer As part of our services, Piper Jaffray & Co. may provide advice concerning the structure, timing, terms and other similar matters concerning an issue of municipal securities that Piper Jaffray is underwriting or placing. However, Piper Jaffray intends to serve as an underwriter respecting the Bonds and not as a financial advisor to you; and the primary role of Piper Jaffray is to purchase the Bonds for resale to investors in an arm’s-length commercial transaction between you and Piper Jaffray. Piper Jaffray has financial and other interests that differ from your interests. IRS Circular 230 Disclosure: Piper Jaffray & Co. does not provide tax advice and nothing contained herein should be construed as tax advice. Any discussion of U.S. tax matters contained herein (including any attachments) (i) was not intended or written to be used, and cannot be used, by you for the purpose of avoiding tax penalties; and (ii) was written in connection with the promotion or marketing of the matters addressed herein. Accordingly, you should seek advice based upon your particular circumstances from an independent tax advisor.