axahachieINDEPENDENT SCHOOL DISTRICT

Long Range Facility Planning Committee Presentation

October 2, 2014

BOND MARKETUPDATE

3Southwest Securities

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

4.25%

4.50%

4.75%

5.00%

5.25%

5.50%

5.75%

6.00%

6.25%

6.50%

BOND BUYERS INDEX OF MUNICIPAL BONDS

January 2001 - October 2014

4.11%

Historical High = 6.01% on October 15th 2008

Average = 4.53%

Historical Low = 3.27% on December 6th 2012

4Southwest Securities

Current Bond Market Conditions Permanent School Fund Guaranteed AAA Market

Approximate Yields to Maturity:

1-year = 0.25%

5-year = 1.15%

10-year = 2.35%

15-year = 3.30%20-year = 3.70%

25-year = 4.00%

30-year = 4.20%

VOTED BOND DEBT SERVICE

6Southwest Securities

$0

$2,500,000

$5,000,000

$7,500,000

$10,000,000

$12,500,000

$15,000,000

$17,500,000

$20,000,000

Deb

t Ser

vice

Fiscal Year Ending

WAXAHACHIE INDEPENDENT SCHOOL DISTRICTOutstanding Voted Bond Debt Service

Series 1997 - BLDG & REF Series 2002 - BLDG & REF Series 2007 - BLDGSeries 2010 - REF Series 2010 - BLDG Series 2011 - REFSeries 2011 - QSCB Net D/S Series 2013 - REF

HISTORICAL STATISTICS

8Southwest Securities

Recent Bond Election History

Voter Communicated Vote Count Not-to-Exceed Actual I&S Tax Rate I&S Tax Rate

Date Amount For Against Increase Increase

November 7, 2006 $59,250,000 3,783 1,170 8.0¢ 8.0¢

May 8, 2010 – Prop. 1 $22,175,000 1,042 964 4.4¢ 4.4¢

May 8, 2010 – Prop. 2 $ 5,945,000 1,372 622 2.5¢ 2.5¢

Total $87,370,000

9Southwest Securities

Recent Bond Rating History

Year Moody’s Fitch Status

2007 A3 A Stable

2010 Aa3 AA- Upgrade Moody’s & Fitch

2011 Aa3 AA- Stable

2013 Aa3 AA- Stable

10Southwest Securities

Recent Bond Refunding History

Issue

Total Debt Service Savings

PV Savings as a % of Refunded Bonds

Unlimited Tax Refunding Bonds, Series 2010 $ 1,085,000 36.41% Unlimited Tax Refunding Bonds, Series 2011 $ 4,772,793 11.44% Unlimited Tax Refunding Bonds, Series 2013 $ 1,788,278 21.85%

Total $ 7,646,071

11

Taxable Value History(1) (2) (3) (4) (5)

Fiscal Net TaxableYear Taxable Value 5-Year 10-Year

Ending Value Growth Average Average

2004/05 1,982,719,636$

2005/06 2,126,125,437$ 7.23%

2006/07 2,260,370,285$ 6.31%

2007/08 2,484,821,353$ 9.93%

2008/09 2,692,600,031$ 8.36%

2009/10 2,769,273,709$ 2.85% 6.94%

2010/11 2,741,686,962$ -1.00%

2011/12 2,728,265,668$ -0.49%

2012/13 2,746,008,719$ 0.65%

2013/14 2,785,501,065$ 1.44%

2014/15 2,950,000,000$ 5.91% 1.30% 4.12%

12

Tax Rate and I&S Fund Balance History(1) (2) (3) (4) (5)

FiscalYear M&O I&S Total I&S Fund

Ending Tax Rate Tax Rate Tax Rate Balance

2004/05 1.4858$ 0.2307$ 1.7165$ 717,767$

2005/06 1.4858$ 0.2350$ 1.7208$ 463,999$

2006/07 1.3573$ 0.2400$ 1.5973$ 1,593,696$

2007/08 1.0400$ 0.3200$ 1.3600$ 1,366,462$

2008/09 1.0400$ 0.3200$ 1.3600$ 1,940,866$

2009/10 1.0400$ 0.3200$ 1.3600$ 2,292,316$

2010/11 1.0400$ 0.3889$ 1.4289$ 2,260,913$

2011/12 1.0400$ 0.3889$ 1.4289$ 2,394,010$

2012/13 1.0400$ 0.3889$ 1.4289$ 2,486,027$

2013/14 1.0400$ 0.3889$ 1.4289$ 2,750,000$

2014/15 1.1700$ 0.2589$ 1.4289$

13Southwest Securities

Surrounding District ComparisonRed Oak ISD Ennis ISD Waxahachie ISD Midlothian ISD Crowley ISD

2014/15 Taxable Value 1,411,626,025$ 1,771,832,606$ 2,989,789,853$ 3,294,631,539$ 5,093,938,415$ (Before Freeze)

Average Daily Attendance 5,690 5,380 7,500 7,700 15,000

(State % = 40%) (State % = 7%) (State % = 0%) (State % = 0%) (State % = 8%)

Principal Outstanding 107,667,143$ 139,951,909$ 114,597,537$ 243,304,663$ 306,970,433$

Debt to AV Percentage 7.63% 7.90% 3.83% 7.38% 6.03%

M&O Tax Rate 1.1700$ 1.0400$ 1.1700$ 1.0400$ 1.1700$ I&S Tax Rate 0.3700 0.5000 0.2589 0.5000 0.5000

Total Tax Rate 1.5400$ 1.5400$ 1.4289$ 1.5400$ 1.6700$

Underlying Bond Rating(s) A1 AA- / A1 AA- / Aa3 A+ / A1 A+ / Aa3

PRELIMINARY BOND PROGRAM ANALYSIS

15Southwest Securities

Preliminary Bond Program AnalysisScenario 1: $85,000,000 Structured for Level Total Debt Service

Assumptions:

Taxable Value – Assumed to Remain Constant at $2.95 Billion

Use of TRE Revenues – Assumed to be $3,790,000 Per Year

Interest Rate – Assumed to be 4.25%

Amortization – Assumed to be 30 Years

Tax Collection % – Assumed to be 99%

Result:

I&S Tax Rate = 37.0ȼ (An I&S Tax Rate Increase of 11.11ȼ )

16Southwest Securities

Preliminary Bond Program AnalysisScenario 2: $100,000,000 Structured for Level Total Debt Service

Assumptions:

Taxable Value – Assumes 5.00% Growth Per Year for 3 Years

Use of TRE Revenues – Assumed to be $3,200,000 Per Year

Interest Rate – Assumed to be 4.75%

Amortization – Assumed to be 30 Years

Tax Collection % – Assumed to be 99%

Result:

I&S Tax Rate = 37.0ȼ (An I&S Tax Rate Increase of 11.11ȼ )

17Southwest Securities

Tax Impact Chart

21.76

149.9914.81

137,500

75,000 60,000 66.66 5.56

122,500 136.10 11.34

ProjectedAnnual

19.44

100,000 85,000 94.44 7.87125,000

135,000 12.50177.76

Tax Increase

Home Value Projected

110,000 122.21 10.18

250,000 261.09235,000

175,000 160,000

225,000 210,000 233.31

Tax Increase$38.89

Exemption

150,000

200,000 185,000 17.13205.54

Monthly

Projected Cost to Homeowner for a 11.11¢ Increase for Voted Bonds

Before

who have applied for and received the Age 65 Freeze

No Tax Increase above the frozen levelon the Homestead of Taxpayers 65 years of age and older

After StateHome Value

Exemptions$50,000 $35,000 $3.24

18Southwest Securities

Preliminary Bond Program AnalysisScenario 3: $133,000,000 Structured for Level Total Debt Service

Assumptions:

Taxable Value – Assumed to Remain Constant at $2.95 Billion

Use of TRE Revenues – Assumed to be $3,200,000 Per Year

Interest Rate – Assumed to be 4.75%

Amortization – Assumed to be 30 Years

Tax Collection % – Assumed to be 99%

Result:

I&S Tax Rate = 50.0ȼ (An I&S Tax Rate Increase of 24.11ȼ )

19Southwest Securities

Tax Impact Chart

who have applied for and received the Age 65 Freeze

No Tax Increase above the frozen levelon the Homestead of Taxpayers 65 years of age and older

After StateHome Value

Exemptions$50,000 $35,000 $7.03

Monthly

Projected Cost to Homeowner for a 24.11¢ Increase for Voted Bonds

BeforeTax Increase

$84.39Exemption

150,000

47.22

200,000 185,000 37.17446.04

250,000 566.59235,000

175,000 160,000

225,000 210,000 506.31

385.76

Tax Increase

Home Value Projected

110,000 265.21 22.10

ProjectedAnnual

42.19

100,000 85,000 204.94 17.08125,000

135,000 27.12325.4932.15

137,500

75,000 60,000 144.66 12.06

122,500 295.35 24.61

BOND ELECTION TIMING

21Southwest Securities

Bond Election Timing May 9, 2015

Board Action to Call for the Bond Election On or Before February 27th

Early Voting April 27th through May 5th

Bond Election May 9, 2015

Canvass Bond Election Results May12th through May 20th

30-Day Contest Period 30 Days from the date the Board Canvasses the Bond Election Results

Sell the Bonds Mid-July through Mid-August