NOTICE OF ELECTION

TO THE DULY QUALIFIED RESIDENT ELECTORS OF BAYVIEW MUNICIPAL UTILITY DISTRICT AND TO ALL OTHER INTERESTED PERSONS: Notice is hereby given that an election will be held in and for Bayview Municipal Utility District (the “District”) between 7:00 a.m. and 7:00 p.m. on November 8, 2016, at any of the polling places designated by Galveston County listed in Schedule I attached hereto.

1. BOND ELECTION. An election shall be held to authorize the Board of Directors of the District to issue its bonds up to the amounts and for the purposes set out in the following Proposition and to provide for payment of any such bonds as set out in such Proposition.

PROPOSITION

Shall the Board of Directors (the “Board”) of Bayview Municipal Utility District (the District”) be authorized to issue the Bonds of the District, maturing serially or otherwise over a period not to exceed 40 years from their date or dates, bearing interest at a rate not to exceed the maximum authorized by law at the time such Bonds are issued (in whole or any part thereof), all as may be determined by the Board, in the maximum amount of $5,000,000 for the purpose of constructing, purchasing, repairing, improving, and extending improvements for its water system and sanitary sewer system, as well as all expenses in any manner incidental thereto (the currently intended projects being described in the engineer’s report filed in the office of the District); and in an amount not in excess of one and one/half times such amount to refund such Bonds after issuance; and shall the Board be authorized to provide for the payment of the principal of and the interest and redemption price on all of such Bonds by a combination of the levy and collection annually of a sufficient tax upon all taxable property within the District and net revenues of its water system and sanitary sewer system, as authorized by the Constitution and laws of the State of Texas, including particularly (but not by way of limitation) chapters 49 and 53 of the Texas Water Code, together with all amendments and additions thereto? The estimated cost of constructing and/or acquiring the above-described improvements and incidental expenses are as follows:

Water Projects

1 New Ground Storage Tank and Booster Pumps at Water Plant   $ 220,000

2 Water Line Replacement, Additions and Loping                        $ 550,000

3 Raw Water Purchase                                                             $ 150,000

4 Water Facilities Upgrades and Rehabilitation                              $ 75,000

5 Painting and Coating of Water Facilities                                   $ 200,000

6 Fencing, Drainage and other site improvements                         $ 30,000

Water Subtotal                                                                        $1,225,000

Wastewater Projects

1 Sanitary Sewer System Rehabilitation                                       $ 660,000

2 Lift Station Upgrades and Rehabilitation                                    $ 500,000

3 Effluent Line Rehabilitation                                                       $ 350,000

4 Wastewater Treatment Facilities Upgrades and Rehabilitation      $ 215,000

5 Painting and Coating of Wastewater Facilities                              $ 80,000

6 Fencing, Drainage and other site Improvements                          $ 35,000

Wastewater Subtotal                                                                $1,840,000

District Facilities

1 District Office Building Improvements                                        $ 100,000

2 Fencing, Drainage and other site Improvements                           $ 35,000

District Facilities Subtotal                                                            $ 135,000

Estimated Total Construction Costs                                             $3,200,000

Contingency                                                                               $ 310,870

Engineering (15% Construction Cost)                                            $ 526,630

Estimated Total for Construction Projects                                                        $4,037,500

NON-CONSTRUCTION COSTS

TOTAL NON-CONSTRUCTION COSTS, including costs of issuance, capitalized interest, bond insurance, engineer reports and administrative expense $ 962,500

TOTAL BOND ISSUE REQUIREMENT                                      $5,000,000

2. PROCEDURES FOR ELECTION. Early voting in such election by personal appearance shall be conducted at any locations designated for early voting by Galveston County, being the designated early voting polling places as provided in the Election Services Agreement. The polls shall be open October 24-28, 2016, from 8 a.m.-5 p.m.; October 29, 2016, from 7 a.m.-7 p.m.; October 30, 2016, from 1 p.m.-6 p.m. and October 31, 2016, through November 4, 2016, from 7 a.m.-7 p.m. at each of the following early voting location designated by Galveston County listed in Schedule II attached hereto. All residents qualified electors of the District shall be permitted to vote at the election and on the day of the election, such electors shall vote at the designated polling place.

* * *SCHEDULE I

Galveston County Voting Locations

1. Joe Faggard Community Center, 1750 Highway 87 Crystal Beach, Texas

2. Rebecca Sealy-UTMB Campus, 404 8th St. Galveston, Texas

3. Galveston County Court House, 722 Moody Ave. Galveston, Texas

4. L A Morgan Elementary School, 1410 37th St. Galveston, Texas

5. GISD Administration Building, 3904 Ave. T at 39th St. Galveston, Texas

6. Moody Methodist Church, 2803 53rd St. Galveston, Texas

7. Alamo School, 5200 Avenue N 1/2 Galveston, Texas

8. Weis Elementary School, 7100 Stewart Rd. Galveston, Texas

9. Seaside Baptist Church, 16534 Termini-San Luis Pass Rd. Jamaica Beach

10. MUD 12 Building, 2929 Highway 6 Bayou Vista, Texas

11. Greater St. Matthews Church, 6333 Highway 6 Hitchcock, Texas

12. The West County Building, 11730 Highway 6 Santa Fe, Texas

13. Santa Fe ISD Museum, 13304 Highway 6 Santa Fe, Texas

14. Runge Park Community Center, 4605 Peck Ave. Santa Fe, Texas

15. La Marque City Hall, 1109-B Bayou Rd. La Marque, Texas

16. Carver Park Community Center, 6415 Park Ave. Texas City, Texas

17. Nessler Center, 2010 5th Ave. N. Texas City, Texas

18. Calvary Baptist Church, 517 18th Ave. N. Texas City, Texas

19. Central Fire Station, 1721 25th St. N. Texas City, Texas

20. College of Mainland, 1200 N. Amburn Rd. Texas City, Texas

21. Dickinson Community Center, 2714 Highway 3 Dickinson, Texas

22. Dickinson City Hall, 4403 Highway 3 Dickinson, Texas

23. Bay Colony Elementary, 101 Bay Colony Elementary Dickinson, Texas

24. San Leon Vol. Fire Department, 12th and Ave. D San Leon, Texas

25. Bacliff Community Center, 4503 11th St. Bacliff, Texas

26. Kemah City Hall, 800 Harris Ave. Kemah, Texas

27. Harbourview Care Center, 300 Enterprise Ave. League City, Texas

28. CCISD Administration Building, 2425 East Main St. League City, Texas

29. League City Civic Center, 400 West Walker League City, Texas

30. The North County Annex, 174 Calder Rd. League City, Texas

31. Bauerschlag Elementary School, 2501 W. League City Pkwy. League City, Texas

32. Creekside Intermediate School, 4320 W. Main St. League City, Texas

33. Friendswood City Hall, 910 South Friendswood Ave. Friendswood, Texas

34. AMOCO Federal Credit Union, 235 E. Parkwood Ave. Friendswood, Texas

35. Old Friendswood Jr. High, 402 Laurel Dr. Friendswood, Texas

SCHEDULE II

Galveston County Early Voting Locations

1. Joe Faggard Community Center, 1750 Highway 87 Crystal Beach, Texas

2. Moody Methodist Church, 2803 53rd St. Galveston, Texas

3. Galveston County Court House, 722 Moody Ave. Galveston, Texas

4. MUD 12 Building, 2929 Highway 6 Bayou Vista, Texas

5. Greater St. Matthews Church, 6333 Highway 6 Hitchcock, Texas

6. The West County Building, 11730 Highway 6 Santa Fe, Texas

7. La Marque City Hall, 1109-B Bayou Rd. La Marque, Texas

8. Carver Park Community Center, 6415 Park Ave. Texas City, Texas

9. Nessler Center, 2010 5th Ave. N. Texas City, Texas

10. Dickinson Community Center, 2714 Highway 3 Dickinson, Texas

11. Bacliff Community Center, 4503 11th St. Bacliff, Texas

12. Kemah City Hall, 800 Harris Ave. Kemah, Texas

13. CCISD Administration Building, 2425 East Main St. League City, Texas

14. The North County Annex, 174 Calder Rd. League City, Texas

15. Creekside Intermediate School, 4320 W. Main St. League City, Texas

16. Friendswood City Hall, 910 South Friendswood Ave. Friendswood, Texas

17. The County Justice Center, 600 59th St. Galveston, Texas