1. Title Slide Los Banos Unified School District Presented by Lori Raineri February 24, 2005 Moving Forward with Funding Community Facilities District No. 1

2. Los Banos Unified School District - Page 2 © 2005 Government Financial Strategies inc. Executive Summary On October 14, 2004, the Board directed District staff to develop a special tax formula and set an election date, in conjunction with a subcommittee of the Board and the Facilities Options Committee. On the January 20, 2005, the Board adopted the Resolution of Intent to form a Community Facilities District, made the necessary findings, and established a date for a public hearing. 3Tonight, the Board will hold a public hearing and may decide to proceed with submitting a ballot measure to the voters on May 24th.

3. Los Banos Unified School District - Page 3 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out In 2007-08 Construction begins on: – New High School - Phase I » Completed by 2009-10 – New Elementary School #1 » Completed by 2008-09

4. Los Banos Unified School District - Page 4 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2009-10 Construction begins on: – New Junior High School » Completed by 2011-12

5. Los Banos Unified School District - Page 5 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2010-11 Construction begins on: – New Elementary School #2 » Completed by 2011-12

6. Los Banos Unified School District - Page 6 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2011-12 Construction begins on: – New High School - Phase II » Completed by 2013-14

7. Los Banos Unified School District - Page 7 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2013-14 Construction begins on: – New Elementary School #3 » Completed by 2014-15 – District Support Facilities » Completed by 2014-15

8. Los Banos Unified School District - Page 8 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2015-16 Construction begins on: – New Elementary School #4 » Completed by 2016-17

9. Los Banos Unified School District - Page 9 © 2005 Government Financial Strategies inc. Projected Facilities Build-Out (cont’d) In 2017-18 Construction begins on: – New Elementary School #5 » Completed by 2018-19

10. Los Banos Unified School District - Page 10 © 2005 Government Financial Strategies inc. Proposed Special Tax Formula $13,585 per certificate of occupancy issued for single family residential property; $4.11 per square foot, per certificate of occupancy issued for multi-family residential property; 3These Special Tax rates were adjusted for inflation in January 2005.

11. Los Banos Unified School District - Page 11 © 2005 Government Financial Strategies inc. Proposed Special Tax Formula (cont’d) $339 per year, per residential dwelling unit obtaining a certificate of occupancy on or after July 1, 2005, for 30 years; $50 per year, per residential dwelling unit obtaining a certificate of occupancy before July 1, 2005, for 30 years.

12. Los Banos Unified School District - Page 12 © 2005 Government Financial Strategies inc. Inflation Adjustments to the Formula nThe “One Time Tax” of $13,585 and $4.11 per square foot, and “Annual Tax” of $339 per year will increase annually for inflation at the greater of: (a)The change in the index set forth in the Engineering News-Record for the California Region – All Construction, or (b)The rate of increase on the District’s school impact fee authorized by Government Code Section 65995 to be applied and increased on an annual basis, until a certificate of occupancy is issued for the residential unit.

13. Los Banos Unified School District - Page 13 © 2005 Government Financial Strategies inc. Inflation Adjustments (cont’d) Once a certificate of occupancy is issued, the Annual Tax will be locked in and subject to an annual inflation adjustment of no more than 2%. The $50 per year Annual Tax for those units already constructed will increase annually for inflation at no more than 2%.

14. Los Banos Unified School District - Page 14 © 2005 Government Financial Strategies inc. Exemptions From the Special Taxes Tax-Exempt Property Non-Residential Property Additions, Remodels or Replacements to.Existing Residences Senior Citizen Property Owners

15. Los Banos Unified School District - Page 15 © 2005 Government Financial Strategies inc. Exemptions From the Special Taxes (cont’d) Deed Restricted Senior Communities Approved Low Income Properties Property Subject to a Mitigation.Agreement

16. Los Banos Unified School District - Page 16 © 2005 Government Financial Strategies inc. Mitigation Agreements As of tonight, five developers have entered into either a Memorandum of Understanding or a Mitigation Agreement with the District. –Ranchwood Homes –Anderson Homes –Watt Communities –B&G Development –Amador Development

17. Los Banos Unified School District - Page 17 © 2005 Government Financial Strategies inc. Mitigation Agreements (cont’d) The property subject to these agreements will be exempt from the One Time Tax. Instead they will mitigate the impact of their developments based on the terms of their respective mitigation agreements. 3The District has set May 12, 2005 5:00 pm as the deadline for developers to come to agreement with the District and qualify for the exemption from the One Time Tax.

18. Los Banos Unified School District - Page 18 © 2005 Government Financial Strategies inc. The Election The May 24th Election requires a 2/3 voter approval to pass. –The vote will be via mail-in ballot.

19. Los Banos Unified School District - Page 19 © 2005 Government Financial Strategies inc. Implementing the Plan If the Board so chooses, after the public hearing, it can proceed with the May 24th Election.