Bakersfield, CaliforniaFlourishing within Kern County

Employmentand

Cost of Living

Kern County…Looking Forward

Employment, % change yr ago, 3-mo MA

Sources: BLS, Moody’s Analytics

Jobs Momentum Will Extend into 2012

Job Growth In Bakersfield Surpasses U.S. Non-farm employment

201220112010200920082007200620052004200320022001

6

4

2

0

-2

-4

-6

-8

Percent change, year ago

United States

Bakersfield

California

Job Growth Comparison across California MetrosNon-farm employment

121110090807060504030201

8

6

4

2

0

-2

-4

-6

-8

-10

-12

-14

Percent change, year ago

Silicon Valley

San Diego

United States

Los Angeles

Bakersfield

Five-year Job GrowthCA

rank MSA5yr job growth

2005-2010Overall

rank1 Bakersfield, CA MSA 104.1 392 San Francisco-San Mateo-Redwood City, CA Metropolitan Division 101.6 683 San Jose-Sunnyvale-Santa Clara, CA MSA 101.0 894 Visalia-Porterville, CA MSA 100.2 1085 Salinas, CA MSA 98.2 130

2005–2010

Five-year Wage and Salary Growth 2004–2009

Overall Index 2011

CA rank MSA

5yr wage growth

2004-2009Overall

rank1 Bakersfield, CA MSA 112.3 122 Visalia-Porterville, CA MSA 106.6 383 Vallejo-Fairfield, CA MSA 105.4 454 Merced, CA MSA 104.9 495 San Francisco-San Mateo-Redwood City, CA Metropolitan Division 104.8 50

CA rank MSA 2010 Rank 2011 Rank

1 Bakersfield, CA MSA 27 472 San Jose-Sunnyvale-Santa Clara, CA MSA 132 513 San Francisco-San Mateo-Redwood City, CA Metropolitan Division 103 524 Merced, CA MSA 168 635 San Diego-Carlsbad-San Marcos, CA MSA 76 69

Working-Age Population (Ages 18-64) Growth Relative to 2005

Employment & Unemployment

2008-2009 2010-2011 2010 2011

Nonfarm Jobs -15,300 +7,900 +2,300 +5,600

Sources: BLS, Moody’s Analytics

Employment, % change year agoEmployment Growth Will Be Broad Based

Agricultural and natural resources employment, % of total

Sources: BLS, Moody’s Analytics

… Due to Makeup of Core Industries

Sources: BLS, Moody’s Analytics, WSJ

Oil Prices Spur Natural Resources Jobs

Cost of doing business, 100=U.S.

Source: Moody’s Analytics

Low Operating Costs Are an Asset

Housing affordability, % of median house/income

Sources: Moody’s Analytics

Valley Regains Housing Affordability Edge

Housing Prices Remain Low

Bakersfield Has Ranked High Among Best-Performing Cities

17

12

36

27

47

50

45

40

35

30

25

20

15

10

5

0

2007 2008 2009 2010 2011

Overall rank

2007–2011

Business Overview

Industry Employment 2008

Projected Employment

2018

Growth Percentag

e

Professional Services 25,000 31,300 25.2%

Healthcare Services 23,600 33,300 41.1%

Transporation/Warehousing

9,600 10,700 11.5%

Energy and Natural Resources

10,700 11,400 6.5%

Manufacturing 13,700 15,500 13.1%

Agriculture 49,600 48,800 -1.6%

Local Industry Projections

Company Business Type Number of

Employees

Grimmway Enterprises Agriculture 4,600

Giumarra Vineyards Agriculture 3,500

Mercy & Memorial Hospitals

Health Care 3,053

Wm. Bolthouse Farms Agriculture 2,350

San Joaquin Community Hospital

Hospital 2,100

Chevron Oil Production 1,500

State Farm Insurance Insurance 1,269

Paramount Citrus Agriculture 1,000

Aera Energy LLC Energy 950

Kaiser Permanente Health Care 850

Rio Tinto Minerals-Borax Chemicals 813

Sun World Agriculture 800

Target Distribution Center Retail Distribution

661

Frito Lay Food Processing

632

Kern County’sTop Private Employers

Annual Base Salary City Salary Required to Maintain Same

Quality of Life in Bakersfield, CA

$50,000.00 Fresno, CA $44,991

$50,000.00 Los Angeles, CA $36,926

$50,000.00 Riverside, CA $43,998

$50,000.00 San Francisco, CA $30,103

$50,000.00 San Diego, CA $37,881

$50,000.00 Sacramento, CA $42,753

Annual Salary Comparison

Quality of Life

Cost of Living Index

Rent Total Percentag

e

Less than $200 2.0%

$200 - $299 3.3%

$300 - $499 9.1%

$500 - $749 24.5%

$750 - $999 24.4%

$1,000 - $1,499 24.2%

$1,500 or more 12.5%

Median Rental Cost

$855

Rent Paid in Kern County

Climate – Bakersfield and Kern County

•Average Annual Temperature 65.3º F

•Average High 76.9º F, Average Low 53.6º F

•January Temperature

•Average High 56.0º F, Average Low 39.0º F

•July Temperature

•Average High 97.0º F, Average 70.0º F

•Precipitation – Annual Rainfall 5.4 Inches

97.7%

110.8% 111.8%

130.8% 131.1%

152.4%161.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

Bakersfield Fresno Riverside San Diego LosAngeles

San Jose SanFrancisco

Quality of Life

Areas Bakersfield Fresno Riverside San Diego Los Angeles

Peak Time Travelers (per day) 300,000 380,000 1.1 million 1.7 million 7.2 million

Freeway Vehicle-Miles of Travel (per day) 2.2 million 3.9 million 23.3 million

37.4 million 132.2 million

Congested Travel During Peak Time (per day) 34% 42% 81% 74% 93%

Time Lost/Peak Traveler (per year) 10 hours 13 hours 31 hours 38 hours 64 hours

Congestion Cost/Peak Traveler (per year) $232 $260 $684 $794 $1,334

Gross Domestic Product (GDP) San Joaquin Valley 2001 - 2010

2011 Annual Commute Pattern Comparisons

15.7

26.5

29.4

19.9

28.129.5

13.5

19.0 19.4

10.6

14.7 15.2

7.3

10.211.3

0

5

10

15

20

25

30

2001 2006 2010

Bakersfield

Fresno

Stockton

Modesto

Visalia