NOTICE OF THE PUBLIC HEARING ON THE ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICT NO. 14 OF THE JURUPA UNIFIED SCHOOL DISTRICT, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX AND THE PROPOSED DEBT ISSUE

NOTICE IS HEREBY GIVEN that at 6:00 o'clock p.m. or as soon thereafter as practicable, on October 1, 2018, at the Board Room of the Board of Education of the Jurupa Unified School District, 4850 Pedley Road, Jurupa Valley, California 92509, the Board of Education of the Jurupa Unified School District (the "Board") will hold a public hearing on the establishment of Community Facilities District No. 14 of the Jurupa Unified School District (the "CFD"), the proposed rate and method of apportionment of the special tax (the "Special Tax") to be levied on certain property within the CFD, and the proposed debt issue.

On August 13, 2018, the Board adopted Resolution No. 2019/05 stating its intention to form the CFD and to incur bonded indebtedness pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"). A summary of such resolution is attached hereto as Attachment A.

At the hearing, the testimony of all interested persons or taxpayers for or against the establishment of the CFD, the extent of the CFD, the funding of specified types of public facilities or services or the incurrence of debt will be heard. If the owners of one-half or more of the area of the land in the territory proposed to be included in the CFD and not exempt from the Special Tax file written protests against the establishment of the CFD, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the specified CFD or to levy the specified Special Tax shall be taken for a period of one year from the date of the decision of the Board.

If there does not exist a majority protest, then the proposal to levy the special tax and to incur bonded indebtedness in the maximum aggregate principal amount of $38,500,000, which may be issued to finance Facilities within the CFD, as indicated on that certain map now on file in the office of the Clerk entitled "Proposed Boundary of Community Facilities District No. 14 of the Jurupa Unified School District," (the "Map") shall be submitted to the qualified electors of the CFD. A special CFD election shall be conducted on October 1, 2018, by mailed ballot, which may, in the alternative, be provided electronically, by overnight delivery service or delivered by hand. The ballots shall be returned to the office of the Election Officer specified in the ballot by no later than 5:00 o'clock, p.m., on October 1, 2018.

ATTACHMENT A

SUMMARY OF RESOLUTION OF INTENTION OF THE DISTRICT BOARD OF THE JURUPA UNIFIED SCHOOL DISTRICT TO ESTABLISH ITS COMMUNITY FACILITIES DISTRICT NO. 14

The Board determines that it should institute proceedings for the formation of a community facilities district under the terms of the Act. The exterior boundaries of the CFD are specified and described to be as shown on that certain map now on file in the office of the Clerk entitled "Proposed Boundary of Community Facilities District No. 14 of the Jurupa Unified School District" (the "Map"), which map indicates by a boundary line the extent of the territory included in the proposed community facilities district, and shall govern for all details as to the extent of the CFD. The name of the proposed CFD shall be "Community Facilities District No. 14 of the Jurupa Unified School District."

The facilities proposed to be financed by the CFD are public school facilities, public infrastructure facilities, a public park and trail improvements with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own or operate and that are necessary to meet present or increased demands placed upon the District and the Jurupa Area Park and Recreation Department ("JARPD"), sewer and water facilities which the CFD is authorized by law to construct, own or operate that are necessary to meet present or increased demands placed upon Jurupa Community Services District ("JCSD"), sewer and water facilities which the CFD is authorized by law to construct, own or operate that are necessary to meet present or increased demands placed upon Rubidoux Community Services District ("RCSD"), and other governmental facilities (collectively, the "Facilities") as a result of development or rehabilitation occurring within the boundaries of the proposed CFD, including but not limited to, the financing, design, construction, installation, rehabilitation and acquisition of:

A. A school site and certain school facilities, including the repayment of existing indebtedness and the extinguishment of other special tax liens, and including the payment of statutory school fees to finance school facilities, which school facilities are described as those K-12 school sites, preschool facilities, school facilities, any facilities needed to accommodate the educational programs provided by the District pursuant to the Education Code, including classrooms, on-site office space at a school, central support and administrative facilities, interim housing, furniture, equipment, technology, buses, and transportation facilities needed by the District in order to serve the student population to be generated as a result of development of the property within the CFD and also includes costs associated with the maintenance and operations of school facilities in accordance with the Act, with an estimated useful life of five (5) years or more, which the District is authorized by law to contribute revenue to or to construct, own or operate, and which are necessary to meet present or increased demand upon the District as a result of development occurring within the boundaries of the CFD, including all related incidental expenses as authorized by the Act. Such School Facilities need not be physically located within the CFD; and

B. Public park sites, certain related park facilities and trail improvements with an estimated useful life of five (5) years or more to be located in and adjacent to the CFD and owned and operated by or on behalf of JARPD.

C. Sewer and water facilities with an estimated useful life of five (5) years or more to be located adjacent to the CFD and owned and operated by or on behalf of JCSD.

D. Sewer and water facilities with an estimated useful life of five (5) years or more to be located adjacent to the CFD and owned and operated by or on behalf of RCSD.

E. "Facilities" shall also include the attributable costs of engineering, design, planning, materials testing, coordination, construction staking, and construction, together with the expenses related to issuance and sale of any "debt," as defined in the Act, including underwriters' discount, appraisals, market studies, reserve fund, capitalized interest, fees of bond counsel, fees of the special tax consultant, bond and official statement printing, administrative expenses of the District, the CFD and bond trustee or fiscal agent related to the CFD, and any such debt and all other incidental expenses. The Facilities shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the District.

Except where funds are otherwise available, it is the intention of the Board to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities, including the principal of and interest on the bonds proposed to be issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of such bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to the expiration of one year from the date of completion of any Facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants, Special Tax consultants, underwriting and printing costs, and all other administrative costs of the tax levy and any bond issue. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the CFD. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the District all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in the Resolution of Intention (the "Rate and Method"). The Special Tax is based upon the cost of financing the Facilities, the demand that each parcel will place on the Facilities and the benefit (direct and/or indirect) received by each parcel from the Facilities.

The Special Tax is to be apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Board shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax. Under no circumstances, however, shall the Special Tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than 10 percent. Furthermore, the maximum special tax authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year.

Pursuant to Section 53344.1 of the Act, the Board hereby reserves to itself, in its sole discretion, the right and authority by subsequent resolution to allow any owner of property within the CFD, subject to the provisions of Section 53344.1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the treasurer of the CFD in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender.

It is the intent of the Board, in its capacity both as governing board of the Jurupa Unified School District and the CFD, to authorize the sale of tax-exempt obligations (the "Obligations") in one or more series, in the maximum aggregate principal amount not to exceed $38,500,000, which amount may be issued to finance Facilities within the CFD, as indicated on the Map, at a maximum interest rate not in excess of the maximum rate permitted by law at the time the Obligations are issued. The term of the Obligations shall be determined pursuant to a resolution of the Board authorizing the issuance thereof, but such term shall in no event exceed 40 years from the date of issuance.

The Board has determined the need to acquire, improve and equip certain school facilities to be used in the furtherance of the District's educational purposes, public infrastructure Facilities, a public park, sewer and water facilities, and other governmental Facilities using the proceeds of the Obligations to be issued by the Board on behalf of the CFD, has determined that the School Facilities are necessary and advisable for its public purposes. The Board expects that it will need to expend some of its moneys on expenditures relating to the costs of the Facilities (the "Reimbursable Expenditures") prior to the date of delivery of any Obligations. Pursuant to Section 1.150-2 of the Treasury Regulations, the Board wishes to declare its reasonable official intent to reimburse such Reimbursable Expenditures with proceeds of such Obligations. The Board expects to allocate the proceeds of the Obligations to reimburse each of the Reimbursable Expenditures no later than eighteen months after the later of (i) the date on which the original expenditure was paid or (ii) the date on which the School Facilities financed by such expenditure were placed in service (or abandoned), but in no event later than three years after the date on which the original expenditure was paid. None of the Reimbursable Expenditures covered by the Resolution was made earlier than 60 days prior to the date the Resolution was adopted.