For Discussion Purposes Only Preliminary Review of District s Bond Capacity Thursday, March 25, 2010 Securities offered by BOSC, Inc., a Registered Investment Advisor, a registered Broker/Dealer, Member FINRA/SIPC. Insurance offered by BOSC Agency, Inc., an affiliated agency. Investments and insurance are not insured by the FDIC, are not deposits or other obligations of, and are not guaranteed by any bank affiliate. Investments are subject to risks, including possible loss of principal amount invested.
Review of District s 2006 Bond Program On November 7, 2006, the voters of Birdville Independent School District (the District ) approved the issuance of $128,600,000 of bonds. The actual results from the bond election (the 2006 Bond Program ) are summarized within the table below. 2006 Bond Election Results Number of Votes FOR the Bond Program: 13,212 Percentage of Votes: 56.03% Number of Votes AGAINST the Bond Program: 10,368 Percentage of Votes: 43.97% At the time of the 2006 Bond Election, taxpayers were informed the District s Interest & Sinking Fund ( I&S ) tax rate (i.e. the tax rate utilized for the repayment of bonds) would increase from 22.6 cents to 38.7 cents, which represented an increase of approximately 16.1 cents. For year 2009/10, the District s actual I&S tax rate is 36.5 cents, which is 2.2 cents below the projected rate communicated to taxpayers at the time of the 2006 Bond Election. 1
Review of District s 2006 Bond Program (Continued) Projected Versus Actual Interest & Sinking Fund Tax Rates For 2006 Bond Program 40.0 Cents I&S Tax Rate (Cents) 35.0 Cents 30.0 Cents 25.0 Cents 20.0 Cents 15.0 Cents 22.6 Cents 22.6 Cents 38.7 Cents 36.5 Cents 38.7 Cents 37.0 Cents 38.7 Cents 36.5 Cents 10.0 Cents Year 2006/07 Year 2007/08 Year 2008/09 Year 2009/10 Projected at Time of 2006 Bond Election Actual 2
Historical Tax Rates District's Historical Tax Rates - Last Five-Years $1.80 $1.70 $1.60 $1.50 $1.617 $0.152 $1.565 $0.226 $1.405 The District's total tax rate has declined by 21.2 cents or 13.1% over the last 4-years. $1.410 $1.405 Tax Rate $1.40 $1.30 $1.20 $1.465 $0.365 $0.370 $0.365 $1.10 $1.339 $1.00 $1.040 $1.040 $1.040 $0.90 2005/06 2006/07 2007/08 2008/09 2009/10 Maintenance & Operations Tax Rate Interest & Sinking Fund Tax Rate 3
Historical Taxes For Average Homeowner Historical Taxes - Last Five-Years - For $106,606 Average Taxable Home Value (A) $2,000 $1,900 $1,800 $1,723.82 $1,668.38 Based upon a constant taxable value, the average homeowner's school property taxes has declined by $226.01 over the last 4-years. Tax Rate $1,700 $1,600 $1,500 $1,400 $1,300 $162.04 $240.93 $1,497.81 $389.11 $1,503.14 $394.44 $1,497.81 $389.11 $1,200 $1,100 $1,561.78 $1,427.45 $1,000 $900 $1,108.70 $1,108.70 $1,108.70 $800 2005/06 2006/07 2007/08 2008/09 2009/10 Maintenance & Operations Taxes Interest & Sinking Fund Taxes (A) The District's average taxable home value for year 2009/10 is approximately $106,606, which is net of the State mandated $15,000 Residential Homestead Exemption. 4
Current Market Review Interest Rates The Bond Buyer 20-Bond Index - A Tax-Exempt General Obligation Bond Yield Index January 1, 1999 To The Present Yield (%) 6.25 6.00 5.75 5.50 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 High = 6.09% Average = 4.85% Low = 3.94% Current = 4.34% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Based upon a $75.0 million bond sale amortized over 25-years, an interest rate difference of 0.25% changes the District s interest cost by approximately $3,250,000. 5
Current Market Review Construction Costs U.S. Construction Index - As of Jauary 2010 150 145 High = 143.3 Price Index 140 135 130 125 120 115 110 105 Current = 133.9 100 2004 2005 2006 2007 2008 2009 2010 Source: U.S. Bureau of Labor Statistics. As evidenced by the U.S. Construction Index graph above, construction costs peaked in mid-year 2008 and have recently declined by 10-20% (depending upon the project) to cost levels experienced in year 2007. Historically, construction costs have correlated with the prevailing economic cycle and construction costs are likely to increase once the economy rebounds, but there remains a current opportunity to save significant dollars on authorized school construction projects. 6
Existing Bonds Debt Service $30,000,000 $27,500,000 $25,000,000 $22,500,000 Annual Debt Service $20,000,000 $17,500,000 $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000 $0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Unlimited Tax School Building & Refunding Bonds, Series 1994 Unlimited Tax School Building & Refunding Bonds, Series 1997 Unlimited Tax School Building Bonds, Series 1998 Unlimited Tax School Building & Refunding Bonds, Series 1999 Unlimited Tax School Building Bonds, Series 2000 Unlimited Tax School Building & Refunding Bonds, Series 2002 Unlimited Tax Refunding Bonds, Series 2002A Unlimited Tax Refunding Bonds, Series 2003 Unlimited Tax Refunding Bonds, Series 2004 Unlimited Tax School Building Bonds, Series 2006 Unlimited Tax School Building & Refunding Bonds, Series 2007 Unlimited Tax School Building Bonds, Series 2008-A Unlimited Tax Refunding Bonds, Series 2008-B Note: Debt service payments reflect payments from September 1 through August 31. 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 The District has a total principal amount of existing bonds equal to $255,639,102 Average Annual Debt Service = $20,417,993 Maximum Annual Debt Service = $27,548,628 7
Factors Affecting District s Bond Capacity I. Debt Limitations State Law Overview of 50.0 Cent Bond Test 50.0 Cent Bond Test The District may only issue new bonds to the degree it can prove, prior to sale, its Interest & Sinking Fund ( I&S ) tax rate (the portion of the District s tax rate solely used to repay bonds) will not exceed 50.0 cents. No. of ISDs 200 180 160 140 120 100 80 60 40 20 0 37 5 1 Historical Trend of Interest & Sinking Fund Tax Rates Years 2001/02-2009/10 30.0 Cents or Higher 40.0 Cents or Higher 50.0 Cent Maximum Rate 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10* * Preliminary, subject to change. Source: Texas Comptroller of Public Accounts - Property Tax Division. 181 73 12 8
Factors Affecting District s Bond Capacity (Continued) Listing of Texas School District s with an Interest & Sinking Fund Tax Rate of 40.0 Cents or More for Year 2009/10 Allen ISD (50.00 Cents) Dickinson ISD (46.40 Cents) Huffman ISD (43.00 Cents) Anna ISD (50.00 Cents) Jacksboro ISD (46.00 Cents) Rockwall ISD (43.00 Cents) Aubrey ISD (50.00 Cents) Lampasas ISD (46.00 Cents) Grand Prairie ISD (42.50 Cents) Bland ISD (50.00 Cents) Panhandle ISD (46.00 Cents) Judson ISD (42.30 Cents) Burleson ISD (50.00 Cents) Lubbock-Cooper ISD (45.90 Cents) Hays Consolidated ISD (42.13 Cents) Celina ISD (50.00 Cents) Frenship ISD (45.87 Cents) Forney ISD (42.00 Cents) Lake Worth ISD (50.00 Cents) Community ISD (45.50 Cents) Pflugerville ISD (42.00 Cents) Little Elm ISD (50.00 Cents) Denton ISD (45.00 Cents) Spring ISD (42.00 Cents) McKinney ISD (50.00 Cents) DeSoto ISD (45.00 Cents) Wylie ISD (42.00 Cents) Melissa ISD (50.00 Cents) Dripping Springs ISD (45.00 Cents) Tioga ISD (41.92 Cents) Spring Hill ISD (50.00 Cents) Princeton ISD (45.00 Cents) Franklin ISD (41.80 Cents) White Settlement ISD (50.00 Cents) Shepherd ISD (45.00 Cents) Angleton ISD (41.52 Cents) Crowley ISD (49.50 Cents) Taylor ISD (45.00 Cents) Port Neches-Groves ISD (41.50 Cents) Millsap ISD (49.50 Cents) Keller ISD (44.63 Cents) Elgin ISD (41.00 Cents) Prosper ISD (49.00 Cents) Hutto ISD (44.50 Cents) Giddings ISD (41.00 Cents) Bishop Consolidated ISD (48.71 Cents) Needville ISD (44.40 Cents) Mansfield ISD (41.00 Cents) Lake Dallas ISD (48.00 Cents) Bastrop ISD (44.10 Cents) Irving ISD (40.50 Cents) Royal ISD (47.95 Cents) Del Valle ISD (44.00 Cents) Hitchcock ISD (40.01 Cents) Floresville ISD (47.58 Cents) New Caney ISD (44.00 Cents) Katy ISD (40.00 Cents) Bloomington ISD (47.50 Cents) Robert Lee ISD (44.00 Cents) Krum ISD (40.00 Cents) Lovejoy ISD (47.50 Cents) Crandall ISD (43.86 Cents) Overton ISD (40.00 Cents) Manor ISD (47.50 Cents) Canton ISD (43.10 Cents) Sherman ISD (40.00 Cents) Caddo Mills ISD (47.10 Cents) Bullard ISD (43.00 Cents) Van Alstyne ISD (40.00 Cents) Eagle Mountain-Saginaw ISD (47.00 Cents) High Island ISD (43.00 Cents) Waller ISD (40.00 Cents) Ennis ISD (47.00 Cents) Note: District s highlighted in red represent school districts within the Dallas/Fort Worth Metroplex. Source: Texas Comptroller of Public Accounts - Property Tax Division 9
$0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Summary of Existing Debt Service and Bond Capacity Additional bond capacity pursuant to State law. To the degree new bonds are repaid in the next 10 years, the District's ability to issue additional bonds without a tax increase is limited. Projected Interest & Sinking Fund Tax Rates - Existing Bonds 10 I&S Tax Rate 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
Factors Affecting District s Bond Capacity (Continued) II. Taxable Assessed Valuation The value of the District s tax base directly impacts the dollar amount of bonds that may be issued for capital improvements, as this determines the annual revenues generated from the District s I&S tax rate for the repayment of bonds. The District s taxable assessed valuation (net of frozen values) is currently $7,394,651,769. Over the last 5-years, the District s tax base has increased by an average of $338,226,894 per year. The District s tax base increased by $61,304,747, or 18% of the 5-year average, in year 2009/10. Historical Increases in Taxable Assessed Valuation - Years 2005/06-2009/10 Dollar Increase $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 633,431,669 491,791,961 338,226,894 246,785,719 257,820,374 61,304,747 2005/06 2006/07 2007/08 2008/09 2009/10 Average 11
Factors Affecting District s Bond Capacity (Continued) III. State Funding Received for Payment of Bonds Pursuant to current State funding regulations, the District is maximizing the dollar amount of State funding assistance it receives for the repayment of its existing bonds. IV. 40-Year Amortization Limitation Pursuant to State law, the maximum amortization period of any District bond sale is 40 years. The District s outstanding debt is currently repaid over 23-years. V. Interest Rate on District s Bonds 12
Percent Change of Factors Affecting Debt Capacity Years 2001/02 Through 2008/09 Percentage Change 150% 125% 100% 75% 50% 25% 0% (25%) (50%) (75%) (100%) Birdville Independent School District - Years 2001/02 Through 2008/09 - Percentage Change In Student Enrollment, Principal Amount Of Debt, Taxable Assessed Valuation, State Funding Assistance For Debt And Interest & Sinking Fund Tax Rate 3.6% 58.5% 44.7% Year 2001/02 Through 2008/09 (68.5%) 146.7% Student Enrollment Principal Amount Of Debt Taxable Assessed Valuation State Funding Assistance For Debt Interest & Sinking Fund Tax Rate (A) In Year 2001/02, the District received $4,248,378 of State funding assistance for the repayment of debt and $1,337,166 in year 2008/09. Source: District's Official Statements and Municipal Advisory Council of Texas. 13
Preliminary Bond Capacity Analysis The remainder of this Preliminary Bond Capacity Analysis is based upon the assumptions detailed herein. To the extent the District s actual results differ from the assumptions herein, the financial impact to the District will correspondingly change. Scenarios Presented Scenario 1: $75.0 Million Bond Program; Scenario 2: $100.0 Million Bond Program; Scenario 3: $125.0 Million Bond Program; and Scenario 4: $150.0 Million Bond Program 14
Preliminary Bond Capacity Analysis (Continued) Assumptions Bonds are structured to include $15.0 million for technology related projects to be repaid within 5 years from issuance and to permit (if implemented) an additional $15.0 million of technology bonds to be issued every 5 years thereafter with no tax increase. The bond program is sold at an interest rate of 6.00%. Current market rates of interest rate approximately 4.50%. Bonds are amortized over a 25-year period and will be structured to allow the District to prepay the bonds prior to scheduled maturity, if appropriate in future years. 15
Preliminary Bond Capacity Analysis (Continued) Historical and Assumed Taxable Assessed Valuations (Net of Frozen Levy) $9,000,000,000 Taxable Assessed Valuation $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $5,950,303,018 $6,208,123,392 $6,841,555,061 $7,333,347,022 $7,394,651,769 $7,394,651,769 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 & Thereafter $7,505,571,546 $7,730,738,692 $7,962,660,853 $8,201,540,679 $8,447,586,899 Average Annual Increase Years Fiscal Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2005/06 2009/10 Taxable Assessed Valuation $5,703,517,299 $5,950,303,018 $6,208,123,392 $6,841,555,061 $7,333,347,022 $7,394,651,769 --- Percentage Change --- 4.33% 4.33% 10.20% 7.19% 0.84% 5.33% Dollar Change --- $246,785,719 $257,820,374 $633,431,669 $491,791,961 $61,304,747 $338,226,894 Average Annual 2015/16 & Increase Years Fiscal Year 2010/11 2011/12 2012/13 2013/14 2014/15 Thereafter 2010/11 2015/16 Taxable Assessed Valuation $7,394,651,769 $7,505,571,546 $7,730,738,692 $7,962,660,853 $8,201,540,679 $8,447,586,899 Dollar Change 0.00% 1.50% 3.00% 3.00% 3.00% 3.00% 2.25% Dollar Change $0 $110,919,777 $225,167,146 $231,922,161 $238,879,826 $246,046,220 $175,489,188 Source: District records. 16
Preliminary Bond Capacity Analysis (Continued) I&S Tax Rate Increase 14.0 Cents 13.0 Cents 12.0 Cents 11.0 Cents 10.0 Cents 9.0 Cents 8.0 Cents 7.0 Cents 6.0 Cents 5.0 Cents 4.0 Cents 3.0 Cents 2.0 Cents 1.0 Cents 0.0 Cents Projected Interest & Sinking Fund Tax Rate Increase 5.7 Cents Scenario 1 - $75.0 Million Bond Program 8.1 Cents Scenario 2 - $100.0 Million Bond Program 10.5 Cents Scenario 3 - $125.0 Million Bond Program 12.9 Cents Scenario 4 - $150.0 Million Bond Program Note: The State Property Tax Code allows for school property taxes on an individual homestead to be frozen at the age of 65. If you are 65 years of age or older, a new bond program will not affect the school property taxes on your residential homestead, if you have filed for the Over 65 Homestead Exemption as there is a ceiling on the amount of school taxes to be paid by such taxpayers. The only exception is if improvements are made to a home. 17
Preliminary Bond Capacity Analysis (Continued) Maximum Projected Interest & Sinking Fund Tax Rate I&S Tax Rate 55.0 Cents 50.0 Cents 45.0 Cents 40.0 Cents 35.0 Cents 42.2 Cents 5.7 Cents 44.6 Cents 8.1 Cents 47.0 Cents 10.5 Cents 49.4 Cents 12.9 Cents 30.0 Cents 36.5 Cents 36.5 Cents 36.5 Cents 36.5 Cents 25.0 Cents 20.0 Cents Scenario 1 - $75.0 Million Bond Program Scenario 2 - $100.0 Million Bond Program Scenario 3 - $125.0 Million Bond Program Scenario 4 - $150.0 Million Bond Program Projected I&S Tax Rate - Year 2010/11 Projected I&S Tax Rate Increase - Year 2011/12 18
Preliminary Bond Capacity Analysis (Continued) Annual I&S Tax Increase $150 $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Projected Annual Interest & Sinking Fund Tax Increase For $106,606 Average Taxable Home Value (A) $60.72 Scenario 1 - $75.0 Million Bond Program $86.40 Scenario 2 - $100.0 Million Bond Program $111.96 Scenario 3 - $125.0 Million Bond Program $137.52 Scenario 4 - $150.0 Million Bond Program (A) The District's average taxable home value for year 2009/10 is approximately $106,606, which is net of the State mandated $15,000 Residential Homestead Exemption. Note: The State Property Tax Code allows for school property taxes on an individual homestead to be frozen at the age of 65. If you are 65 years of age or older,a new bond program will not affect the school property taxes on your residential homestead, if you have filed for the Over 65 Homestead Exemption as there is a ceiling on the amount of school taxes to be paid by such taxpayers. The only exception is if improvements are made to a home. 19
Preliminary Bond Capacity Analysis (Continued) Monthly I&S Tax Increase $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 Projected Monthly Interest & Sinking Fund Tax Increase For $106,606 Average Taxable Home Value (A) $5.06 Scenario 1 - $75.0 Million Bond Program $7.20 Scenario 2 - $100.0 Million Bond Program $9.33 Scenario 3 - $125.0 Million Bond Program $11.46 Scenario 4 - $150.0 Million Bond Program (A) The District's average taxable home value for year 2009/10 is approximately $106,606, which is net of the State mandated $15,000 Residential Homestead Exemption. Note: The State Property Tax Code allows for school property taxes on an individual homestead to be frozen at the age of 65. If you are 65 years of age or older, a new bond program will not affect the school property taxes on your residential homestead, if you have filed for the Over 65 Homestead Exemption as there is a ceiling on the amount of school taxes to be paid by such taxpayers. The only exception is if improvements are made to a home. 20
Preliminary Bond Capacity Analysis (Continued) Scenario 3 - $125.0 Million Bond Program - Projected Interest & Sinking Fund Tax Rates $0.50 $0.45 Potential $15.0 Million Sale For Technology 5-Years From Now With No I&S Tax Increase $0.40 $0.35 Future Debt Capacity Without An Interest & Sinking Fund Tax Rate Increase I&S Tax Rate $0.30 $0.25 $0.20 $0.15 $0.10 Projected I&S Fund Tax Rates - Existing Bonds - Principal Equals $255,639,102 $125.0 Million Bond Sale $0.05 $0.00 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 Projected I&S Tax Rate - Existing Debt Service Projected I&S Tax Rate - With $125.0 Million Bond Sale 21
Preliminary Bond Election Timetable November 2, 2010 Financing Team Members BISD --- Birdville Independent School District Issuer BOSC --- BOSC, Inc. Financial Advisor MPH --- McCall, Parkhurst & Horton L.L.P. Bond Counsel Preliminary Bond Election Timetable November 2, 2010 Date Action Responsibility On or Prior to August 17, 2010 (A) Board Meeting Board of Trustees Calls the Bond Election BISD, BOSC, MPH October 3 23, 2010 Publish Notice of Election BISD, MPH Prior to October 12, 2010 Post Notice of Election BISD, MPH October 18 29, 2010 Early Voting Period BISD November 2, 2010 Bond Election BISD, BOSC November 10 15, 2010 Board Meeting Canvass Election Results BISD, BOSC December 10 15, 2010 30-Day Contest Period Ends N/A January 2011 Bond Sale BISD, BOSC, MPH February 2011 Bond Closing (District Receives Bond Proceeds) BISD, BOSC, MPH (A) For bond elections held on the November uniform election date, State law requires a bond election to be called by the Board of Trustees at least 62 days prior to the date of the election and the Department of Justice requires 60 days for approval of election procedures. Should the District desire to receive Department of Justice approval prior to the beginning of Early Voting, the District must call the election at least 77 days prior to the election date. 22
Preliminary Bond Election Timetable May 14, 2011 Financing Team Members BISD --- Birdville Independent School District Issuer BOSC --- BOSC, Inc. Financial Advisor MPH --- McCall, Parkhurst & Horton L.L.P. Bond Counsel Preliminary Bond Election Timetable May 14, 2011 Date Action Responsibility On or Prior to March 3, 2011 (A) Board Meeting Board of Trustees Calls the Bond Election BISD, BOSC, BC April 14 May 4, 2011 Publish Notice of Election BISD, BC Prior to April 25, 2011 Post Notice of Election BISD, BC May 2 10, 2011 Early Voting Period BISD May 14, 2011 Bond Election BISD, BOSC May 17 25, 2011 Board Meeting Canvass Election Results BISD, BOSC June 16 24, 2011 30-Day Contest Period Ends N/A July 2011 Bond Sale BISD, BOSC, BC August 2011 Bond Closing (District Receives Bond Proceeds) BISD, BOSC, BC (A) For bond elections held on the May uniform election date, State law requires a bond election to be called by the Board of Trustees at least 62 days prior to the date of the election and the Department of Justice requires 60 days for approval of election procedures. Should the District desire to receive Department of Justice approval prior to the beginning of Early Voting, the District must call the election at least 72 days prior to the election date. 23
Historical Texas School District Bond Election Results Texas School District Bond Elections - Historical Approval Rates Approval Rate 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 87.4% 87.2% 79.9% 81.1% 63.4% 65.4% Year 2005 Year 2006 Year 2007 Year 2008 Year 2009 5-Year Average Historical Texas School District Bond Election Results Years 2005 Through 2009 No. Of Dollar Amount Bonds Approved Bonds Failed Year Elections Of Bond Elections Dollar Amount Percentage Dollar Amount Percentage 2005 99 $5,310,162,260 $3,365,402,260 63.4% $1,944,760,000 36.6% 2006 135 $7,711,110,762 $6,164,297,085 79.9% $1,546,813,677 20.1% 2007 165 $12,757,680,479 $11,148,410,479 87.4% $1,609,270,000 12.6% 2008 131 $9,960,307,101 $8,686,683,101 87.2% $1,273,624,000 12.8% 2009 79 $2,447,569,995 $1,601,039,995 65.4% $846,530,000 34.6% Totals 609 $38,186,830,597 $30,965,832,920 81.1% $7,220,997,677 18.9% Source: The Municipal Advisory Council of Texas. 24
Recent Texas School District Bond Election Results With the economy continuing to sag since the recession started in December 2007 and unemployment above 10%, approval rates for Texas school district bond elections have correspondingly declined as individuals vote their pocketbooks. Recent Texas School District Bond Election Results Approval Rate 100% 90% 80% 70% 60% 50% 88.5% 81.0% Election approval rates have declined as the economy has slowed. 70.4% 58.8% May 10, 2008 Election November 4, 2008 Election May 9, 2009 Election November 3, 2009 Election 25
Recent D/FW School District Bond Elections The following table summarizes successful bond elections held by school districts within the Dallas/Fort Worth Metroplex over the last 2-years. School District Recent Successful School District Bond Elections Within Dallas/Fort Worth Metroplex Election Date Dollar Amount Approved Allen Independent School District 11/04/08 $219,000,000 Allen Independent School District 05/09/09 119,400,000 Arlington Independent School District 11/03/09 197,500,000 Bridgeport Independent School District 11/03/09 15,000,000 Carroll Independent School District 05/09/09 138,000,000 Celina Independent School District 11/04/08 34,310,000 Coppell Independent School District 05/09/09 55,900,000 Dallas Independent School District 05/10/08 1,350,000,000 Decatur Independent School District 05/10/08 27,900,000 Eagle Mountain-Saginaw Independent School District 05/10/08 394,000,000 Ennis Independent School District 05/10/08 48,985,000 Highland Park Independent School District 05/10/08 75,400,000 Jacksboro Independent School District 11/04/08 21,000,000 Keller Independent School District 11/04/08 142,300,000 Lewisville Independent School District 05/10/08 697,670,000 Northwest Independent School District 05/10/08 260,000,000 Plano Independent School District 05/10/08 490,000,000 Princeton Independent School District 05/10/08 46,000,000 Springtown Independent School District 05/10/08 35,000,000 Wylie Independent School District 11/03/09 24,940,000 26
Comparison of Selected D/FW School Districts Comparison Of Outstanding Debt Per Student Year 2008/09 Principal Amount Of Bonds Outstanding & Authorized Bonds As Of August 31, 2009 Year 2008/09 Student Enrollment Year 2008/09 Debt Per Student School District 1.) Eagle Mountain-Saginaw Independent School District $789,227,505 15,292 $51,610 2.) Crowley Independent School District 651,734,531 15,031 43,359 3.) Carroll Independent School District 267,305,512 7,839 34,099 4.) Lewisville Independent School District 1,458,746,982 50,216 29,049 5.) Keller Independent School District 735,369,467 30,299 24,270 6.) Mansfield Independent School District 741,737,835 30,759 24,114 7.) Grapevine-Colleyville Independent School District 279,155,892 13,822 20,196 8.) Coppell Independent School District 193,078,638 9,948 19,409 9.) Irving Independent School District 606,272,217 33,131 18,299 10.) Grand Prairie Independent School District 464,110,913 25,996 17,853 11.) Carrollton-Farmers Branch Independent School District 453,520,000 26,257 17,272 12.) Dallas Independent School District 2,663,735,000 157,352 16,929 13.) Mesquite Independent School District 544,694,767 37,030 14,710 14.) Duncanville Independent School District 166,831,016 12,660 13,178 15.) Richardson Independent School District 444,244,988 34,407 12,911 16.) Birdville Independent School District 255,639,102 22,576 11,323 17.) Fort Worth Independent School District 843,119,995 79,285 10,634 18.) Hurst-Euless-Bedford Independent School District 212,152,032 20,565 10,316 19.) Arlington Independent School District 602,751,261 63,045 9,561 20.) Garland Independent School District 474,379,793 57,510 8,249 Source: Municipal Advisory Council of Texas. The average Debt Per Student, a measure of debt burden, among the selected D/FW school districts is $20,367. The District s Debt Per Student is $11,323. 27
Comparison of Selected D/FW School Districts Comparison Of Final Bond Amortizations Existing Bonds Final Bond Payment Due As Of School District August 31, 2009 1.) Eagle Mountain-Saginaw Independent School District 2048 2.) Grand Prairie Independent School District 2040 3.) Crowley Independent School District 2039 4.) Irving Independent School District 2038 5.) Carroll Independent School District 2035 6.) Keller Independent School District 2035 7.) Coppell Independent School District 2034 8.) Dallas Independent School District 2034 9.) Richardson Independent School District 2034 10.) Carrollton-Farmers Branch Independent School District 2033 11.) Duncanville Independent School District 2033 12.) Mansfield Independent School District 2033 13.) Mesquite Independent School District 2033 14.) Birdville Independent School District 2032 15.) Grapevine-Colleyville Independent School District 2032 16.) Fort Worth Independent School District 2029 17.) Garland Independent School District 2029 18.) Arlington Independent School District 2028 19.) Hurst-Euless-Bedford Independent School District 2028 20.) Lewisville Independent School District 2028 Source: Municipal Advisory Council of Texas. The average final bond amortization among the selected D/FW school districts is year 2034 or 25 years. The District s current debt portfolio has a final maturity date of 2032 or 23 years. 28
Comparison of Selected D/FW School Districts Comparison Of Interest & Sinking Fund Tax Rates Year 2009/10 Interest & Sinking Fund School District Tax Rates 1.) Crowley Independent School District $0.4950 2.) Eagle Mountain-Saginaw Independent School District 0.4700 3.) Keller Independent School District 0.4463 4.) Grand Prairie Independent School District 0.4250 5.) Mansfield Independent School District 0.4100 6.) Irving Independent School District 0.4050 7.) Mesquite Independent School District 0.3800 8.) Duncanville Independent School District 0.3780 9.) Carroll Independent School District 0.3750 10.) Lewisville Independent School District 0.3687 11.) Birdville Independent School District 0.3650 12.) Carrollton-Farmers Branch Independent School District 0.3022 13.) Richardson Independent School District 0.3000 14.) Fort Worth Independent School District 0.2820 15.) Hurst-Euless-Bedford Independent School District 0.2555 16.) Grapevine-Colleyville Independent School District 0.2500 17.) Coppell Independent School District 0.2434 18.) Arlington Independent School District 0.2320 19.) Dallas Independent School District 0.2313 20.) Garland Independent School District 0.2133 Source: Municipal Advisory Council of Texas. The average year 2009/10 Interest & Sinking Fund tax rate among the selected D/FW school districts was 34.14 cents. The District s year 2009/10 Interest & Sinking Fund tax rate was 36.5 cents. 29
Tax Ratification Elections To date, 190 Tax Ratification Elections ( TRE ) have passed within the State, representing an approval rate of 67.9%. It is important to note, the approval rate of TRE s during years 2008 and 2009 was only 60% which directly correlates with the slowdown of the economy in December 2007. Historical Tax Ratification Election Results Years 2007 Through 2009 Year No. of Elections Passed Failed Approval Rate 2007 119 93 26 78.2% 2008 116 70 46 60.3% 2009 45 27 18 60.0% Totals 280 190 90 67.9% Source: TexasISD.com and Texas Comptroller of Public Accounts. Texas School District Tax Ratification Elections - Historical Approval Rates Approval Rate 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 78.2% 67.9% 60.3% 60.0% Year 2007 Year 2008 Year 2009 3-Year Average 30