Review of Financial and Debt Considerations Monday, February 26, - - PowerPoint PPT Presentation

Review of Financial and Debt Considerations Monday, February 26, 2018

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School District Revenues/Expenditures = Quality of Education = Quality of Community = Home Values and Economic Development

 Generally Speaking:

School Districts Are “Economic Drivers”

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 GCISD is the largest employer in the City of Colleyville.  GCISD is the 4th largest employer in the City of Grapevine.  The capital expenditures within GCISD’s bond programs generate ancillary economic benefit.

School Districts Are “Economic Drivers”

Summary of Projected Economic and Fiscal Impact of Capital Spending – Proposed $248,975,000 Bond Election Conducted by Terry L. Clower, Ph.D.

Description Impact Economic Activity $ 301,127,000 Labor Income (salaries, wages, benefits) 137,119,000 Total State and Local Tax (includes fees) 11,854,000 Employment (person years of employment)* 2,312

*A person year of employment is one job lasting for one year.

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 GCISD participation in certain Tax Increment Reinvestment Zones (“TIRZ”) have promoted “economic development” in partnership with the Cities of Colleyville and Grapevine.

• City of Colleyville TIRZ No. 1

 Contributed funds for public infrastructure  GCISD receives 26% of funds contributed to the TIRZ for debt repayment

• City of Grapevine TIRZ No. 1 – Grapevine Mills

 The TIRZ terminated in February 2016  GCISD received $24.5 million for joint-use facilities such as the Mustang-Panther Stadium renovations

• City of Grapevine TIRZ No. 2 – Gaylord Texan

 Received funds for the repayment of the District’s Series 1998 Bonds – Construction of new Grapevine Middle School

Cooperation for Economic Development Projects with the Cities of Grapevine and Colleyville

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 The District’s local tax revenues for maintenance & operations purposes and for the repayment of voter-approved bonds are governed by the Texas Education Code – Established by the Texas Legislature.  Each year, the District sets two (2) separate tax rates:

• Maintenance and Operations (“M&O”) Tax Rate: Funds the “day to

day” operational expenses of the District, including instructional programs, teacher salaries, instructional supplies, security, student transportation, extracurricular activities, utilities, facility maintenance, etc.

• Debt Service Tax Rate:

Funds the principal and interest on bonds approved by voters for capital improvements.  The Tarrant Appraisal District (“TAD”) and Dallas Central Appraisal District (“DCAD”) are responsible for independently establishing GCISD’s certified home values on an annual basis.

Where Do the District’s Local Revenues Come From?

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 Pursuant to the State funding system, GCISD’s available funding for M&O purposes is based upon an “Equalized Wealth per Student” formula set by the State.  GCISD is a “Chapter 41” or “Property Wealthy” school district as the District generates local M&O tax revenue in excess of the State’s “Equalized Wealth per Student”.  As such, GCISD is annually required to pay the State all local M&O tax revenues generated above the “Equalized Wealth per Student” for each penny

• f tax effort – Referred to as “Recapture”.
• Estimated “Recapture” payment in year 2017/18: $43.94 million or 27.2%
• f local and State M&O revenues.

 Local debt service taxes are not subject to “recapture” – GCISD retains all local funds for bond payments.

• The issuance of bonds payable from the debt service tax rate allows 100%
• f taxes to be used in GCISD!

Where Do the District’s Local Revenues Come From?

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Composition of Total Property Values – Year 2017/18

Source: Tarrant Appraisal District and Dallas Central Appraisal District.

Single-Family Residential (46.2%) Multi-Family Residential (8.7%) Vacant Lots, Acreage, Farm & Ranch Improvements (1.5%) Oil, Gas & Minerals (0.0%) Business, Commercial, Industrial, Utilities, Other (43.7%)

 Single-Family Residential properties comprise 46.2% of the District’s property values.  Business and Commercial properties comprise 43.7% of the District’s property values.

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$8.07 $16.15 $24.22 $27.47 $32.29 $40.37 $48.44

$0 $10 $20 $30 $40 $50 $60 $70 $80

$100,000 Taxable Home Value $200,000 Taxable Home Value $300,000 Taxable Home Value $340,206 Average Taxable Home Value $400,000 Taxable Home Value $500,000 Taxable Home Value $600,000 Taxable Home Value

Cost Per School Day

Property Tax Cost Per School Day – Homeowner with One Child in GCISD – Fiscal Year 2017/18

$340,206 Average Taxable Home Value

 A homeowner with an average taxable home value of $340,206 and one child attending Grapevine-Colleyville ISD:

• Pays approximately $27.47 of school property taxes for each school day.

 This includes the cost of instructional programs, supplies, teacher salaries, transportation, security, Co-curricular/extracurricular activities, facility maintenance and bond payments for school facilities.

Note: Taxes are based upon a 173 school day year.

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$11,561,298,624 $12,590,393,818 $12,871,261,394 $12,541,498,344 $12,701,297,230 $12,960,519,307 $13,228,060,089 $13,932,991,103 $14,795,326,848 $16,147,814,421 $17,163,144,924

$8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 $16,000,000,000 $18,000,000,000

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Total Assessed Valuation

Source: Tarrant Appraisal District and Dallas Central Appraisal District.

Historical Total Property Values

 Since year 2007/08, GCISD’s Total Property Values have increased by 48.5%

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 As GCISD’s total property values have increased by 48.5%, the District’s “Recapture” payment has increased by $13,998,219 or 46.8%.  Total Local and State M&O Revenues (Net of “Recapture”):

Year 2007/08

State $26,950,747 (19.2%) Local – Net $83,661,530 (59.5%) Local – Recapture $29,942,376 (21.3%)

Year 2017/18(A)

Local (45.1%)

State $11,963,801 (7.4%) Local – Net $105,723,563 (65.4%) Local – Recapture $43,940,595 (27.2%)

(A) Budgeted. Source: District records.

Maintenance and Operations

• Year 2007/08 – $110,612,277
• Year 2017/18 – $117,687,364(A)

 At a student enrollment of 13,890, GCISD’s M&O Revenues per Student have increased by 6.8% over the last 10-years.

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Historical Average Taxable Home Values

$249,024 $253,851 $281,450 $285,816 $310,183 $340,206

$225,000 $250,000 $275,000 $300,000 $325,000 $350,000 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Average Taxable Home Value

Source: District records.

 Over the last 5-years, average taxable home values established by TAD and DCAD have increased by 36.6% or an average of 6.5% per year.

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What Would be the Perception of GCISD if Average Taxable Home Values Have Declined?

$340,206 $310,183 $285,816 $281,450 $253,851 $249,024

$225,000 $250,000 $275,000 $300,000 $325,000 $350,000 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Average Taxable Home Value

Source: District records.

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Historical Taxes and Average Taxable Home Values

$1,979.10 $2,032.31 $2,359.14 $2,390.13 $2,520.91 $2,499.36 $697.52 $711.04 $788.34 $800.57 $1,106.42 $1,213.52 $610.75 $607.74 $567.94 $582.36 $704.99 $1,038.78 $3,287.37 $3,351.09 $3,715.42 $3,773.06 $4,332.32 $4,751.66 $249,024 $253,851 $281,450 $285,816 $310,183 $340,206

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Average Taxable Home Value Annual Property Taxes Maintenance & Operations Taxes Debt Service Taxes Recapture Average Taxable Home Value

Source: District records.

 22% of GCISD’s Total Taxes are “Recaptured”.

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$6,508 $6,743 $7,127 $7,376 $7,467 $7,913 $7,611 $1,382 $1,053 $753 $757 $694 $920 $861 $804 $367 $569 $360 $261 $67 $283

$8,694 $8,163 $8,450 $8,493 $8,421 $8,900 $8,756 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 M&O Revenues Per Student M&O Taxes/Other Local Revenues Retained in District State Program Revenues Federal Program Revenues

(A)

Historical M&O/General Fund Revenues Per Student (Net of Recapture)

(A)Budgeted. Source: District’s Audited Financial Statements, Texas Education Agency - PEIMS and District records.

 GCISD’s available M&O Revenues Per Student (net of “Recapture”) have increased by $62.  Local M&O Taxes have increased by $1,104.  State/Federal funding has declined by $1,042.

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Instruction & Instructional Support $7,054 (57.0%) Central Administration $276 (2.2%) District Operations $1,248 (10.1%) Chapter 41 Recapture $3,163 (25.5%) TIF Payments $410 (3.3%) Other $233 (1.9%)

(A)Budgeted. Source: District records.

Total Operating Expenditures Per Student – Year 2017/18(A)

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A 20-Year Comparison

Source: Tarrant Appraisal District, Dallas Central Appraisal District, Texas Education Agency, U.S. Department of Labor Statistics and District Records.

Description Year 1999 Year 2018 Percentage Change Bond Principal Outstanding $ 262,755,813 $ 438,049,452 66.7% Taxable Property Value $ 5.84 Billion $ 14.57 Billion 149.6% Bond Principal as a Percentage of Taxable Value 4.5% 3.0% (1.50%) Total Bond Payments Outstanding $ 573,046,045 $ 698,014,738 21.8% Total GCISD Tax Rate $ 1.5523 $ 1.3967 (10.0%) Average Taxable Home Value $ 170,830 $ 340,206 99.1% Average Taxable Home Value – Total GCISD Taxes $ 2,652 $ 4,752 79.2% Total GCISD Taxes Retained by the District $ 2,329 $ 3,713 59.4% “Recapture” Payment to State $ 11,704,233 $ 43,940,595 275.4% Consumer Price Index 166.6 247.8 48.7%

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$9,640,809 $21,345,042 $40,376,722 $65,619,126 $100,071,965 $138,925,422 $181,874,294 $231,156,052 $275,011,049 $304,953,425 $339,961,508 $365,406,214 $391,648,918 $420,617,915 $448,475,842 $472,724,463 $497,136,884 $522,277,270 $552,942,621 $596,883,216

$0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000

1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Cumulative “Recapture” Payments

Source: Tarrant Appraisal District and Dallas Central Appraisal District.

GCISD “Recapture” Payments to State – Last 20-Years

"Recapture" Payments to State Last 5-Years 148,407,374 $ Last 10-Years 291,929,791 Last 20-Years 596,883,216 $

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 School Financial Integrity Rating System of Texas (“FIRST”): The State annually deploys a financial accountability rating system to distinguish a school district’s financial performance based upon certain uniform criteria.  GCISD 2016/17 FIRST Rating: “Superior” – 96 of a possible 100 points.  Bond Ratings: GCISD maintains independent ratings from nationally recognized credit rating agencies, such as Moody’s Investors Service and S&P Global Ratings, that evaluate the District’s financial strength and its ability to pay its existing bonds.

• Primary Bond Rating Factors:

 Financial, Debt, Economic and Management

Overview of Certain Financial/Bond Ratings

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 Moody’s Investors Service: “Aa1” – “Judged to be of high quality and are subject to very low credit risk.”  On July 14, 2017, Moody’s Investors Service upgraded the District’s bond rating from “Aa2” to “Aa1”.  Of the 1,023 Texas school districts, only 7 have a higher bond rating – GCISD is in the 99th percentile.  Nationally, of the approximate 13,506 school districts, only 92 have a higher bond rating – GCISD is in the 99th percentile.  S&P Global Ratings: “AA” – “Having a very strong capacity to meet its financial commitments.”  The District’s bond rating is in the same rating category as the United States

• f America.

Overview of Certain Financial/Bond Ratings

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Historical Tax Rates

$1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $0.2801 $0.2801 $0.2801 $0.2801 $0.3567 $0.3567

$1.3201 $1.3201 $1.3201 $1.3201 $1.3967 $1.3967

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Property Tax Rate Per $100 Valuation Maintenance & Operations Tax Rate Debt Service Tax Rate

 Maintenance & Operations (“M&O”) Tax Rate: No Change.  Debt Service Tax Rate: Increase of 7.66-cents in year 2016/17 as a result of the 2016 Bond Program.

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 The District has had four (4) bond elections approved by voters over the last 20-years, totaling $615,385,000.

Historical Bond Elections Approved By Voters

Source: Texas Bond Review Board, The Municipal Advisory Council of Texas and District records.

District’s Historical Bond Elections Approved By Voters – Last 20-Years

Election Date Purpose Election Amount Voter Approval Percentage Issuance Date Amount Issued Dollar Amount Of Bonds Remaining To Be Issued September 26, 1998  New Grapevine MS Building  Repairs and Renovations to School Buildings  Technology $ 134,000,000 69.2% December 30, 1998 $ 134,000,000

• September 10, 2005

 New Colleyville ES Building  Renovate Colleyville ES building for Bridge Learning Center, VISTA Alternative School, Professional Development Education Center (PDEC), and offices for Special Education and Nutrition Services  School Buses  Technology 107,910,000 68.5% December 15, 2005 April 17, 2007 66,725,000 41,185,000

• May 14, 2011

 Repairs and Renovations to School Buildings  Access control systems for all schools (security)  School Buses  Band Instruments  Technology 124,500,000 68.0% September 8, 2011 September 13, 2012 92,000,000 32,500,000

• May 7, 2016

 New Cannon ES building  New Multi-purpose activity centers for each high school  Security (construction for secured vestibules and security cameras)  School Buses  Repairs and Renovations to School Buildings  Classroom Furniture 248,975,000 54.2% September 22, 2016 188,655,000 $ 60,320,000

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Note: Debt service payments reflect payments from September 1 through August 31. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 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 2036/37 2037/38 2038/39 2039/40 2040/41

Annual Bond Payments

Unlimited Tax School Building and Refunding Bonds, Series 1998 Unlimited Tax School Building and Refunding Bonds, Series 2011 Unlimited Tax Refunding Bonds, Series 2012-A Variable Rate Unlimited Tax School Building Bonds, Series 2012-B Unlimited Tax Refunding Bonds, Series 2013-A Unlimited Tax Refunding Bonds, Series 2013-B Unlimited Tax Refunding Bonds, Series 2015 Unlimited Tax Refunding Bonds, Series 2016 Unlimited Tax School Building Bonds, Series 2016

The District has a total principal amount of existing bonds equal to $438,049,452.  The District’s existing bond payments are conservatively structured with annual principal and interest payments over 24-years.

Dollar Amount and Structure of Existing Bonds

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Note: Debt service payments reflect payments from September 1 through August 31. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 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 2036/37 2037/38 2038/39 2039/40 2040/41

Annual Bond Payments Principal Interest

GCISD – Repayment Period $1 Borrowed = $0.59 Interest

As of August 31, 2017 Principal 438,049,452 $ + Interest 259,965,286 = Total 698,014,738 $

Dollar Amount and Structure of Existing Bonds

30-Year Home Mortgage – Repayment Period $1 Borrowed = $0.95 Interest

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 GCISD’s prudent and strategic debt management practices have lowered the borrowing costs of taxpayers by approximately $63 million over the last 6-years!

Savings from District’s Debt Management Practices

Summary of Interest Cost Savings Achieved By The District

Bond Sale/Description Principal Amount Series Refunded/ Redeemed Savings Unlimited Tax Refunding Bonds, Series 2012-A $ 37,980,000 2007 $ 11,107,500 Variable Rate Unlimited Tax School Building Bonds, Series 2012-B 32,500,000

• 6,459,125

Unlimited Tax Refunding Bonds, Series 2013-A 16,750,000 2005 2,131,035 Unlimited Tax Refunding Bonds, Series 2013-B 51,240,000 2005-A 7,800,523 Unlimited Tax Refunding Bonds, Series 2015 33,675,000 2005 4,954,988 Prepayment of Series 2005-A Bonds – August 2015 1,830,000 2005-A 881,608 Unlimited Tax Refunding Bonds, Series 2016 50,322,451 2006 14,647,747 Prepayment of Series 2012-B Bonds – August 2017 10,000,000 2012-B 15,019,000 Totals $ 234,297,451

• $ 63,001,526

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Future Debt Management Flexibility – Callable Bonds

 The District currently has $307,765,000 (70.2%) of existing bonds that are eligible to be “prepaid” prior to maturity.  As part of the budgeting process, the District will annually determine the dollar amount of bonds to be “prepaid” based upon prevailing circumstances in future years.

Summary of District’s Outstanding Callable Bonds

Issue Call Date Principal Amount Outstanding Principal Amount Callable Final Maturity Variable Rate Unlimited Tax School Building Bonds, Series 2012-B 08/01/2020(A) $ 22,200,000 $ 22,200,000 2032 Unlimited Tax School Building and Refunding Bonds, Series 2011 08/15/2021 85,335,000 81,925,000 2036 Unlimited Tax Refunding Bonds, Series 2012-A 08/15/2021 27,635,000 19,305,000 2029 Unlimited Tax Refunding Bonds, Series 2013-B 08/15/2023 45,070,000 30,195,000 2031 Unlimited Tax Refunding Bonds, Series 2016 08/15/2025 41,035,000 41,035,000 2029 Unlimited Tax School Building Bonds, Series 2016 08/15/2025 153,480,000 113,105,000 2041 Unlimited Tax School Building and Refunding Bonds, Series 1998 Non-Callable 23,744,452

• 2025

Unlimited Tax Refunding Bonds, Series 2013-A Non-Callable 13,360,000

• 2022

Unlimited Tax Refunding Bonds, Series 2015 Non-Callable 26,190,000

• 2022

Totals

• $ 438,049,452

$ 307,765,000

• (A) Represents mandatory tender date.

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 May 7, 2016: Bond Election Approving $248,975,000 of bonds for capital improvements and buses.  Goal Within 2016 Bond Program – Fully repay approximately $45 million for shorter-term technology-related projects, buses and equipment over their useful lives.  July 25, 2016: District sold initial installment of $188,655,000 at favorable fixed interest rate of 2.80%.

Summary of 2016 Bond Program

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The Bond Buyer 20-Bond Index – A Tax-Exempt General Obligation Bond Yield Index January 1, 2000 To The Present

Municipal interest rates are currently 0.88% below the historical average experienced since year 2000.

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Yield (%)

Average = 4.41% High = 6.09% Low = 2.80% Current = 3.86% GCISD Sale of $188,655,000 from May 2016 Bond Program – True Interest Rate of 2.80%

Summary of 2016 Bond Program

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Note: Debt service payments reflect payments from September 1 through August 31. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 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 2036/37 2037/38 2038/39 2039/40 2040/41

Principal Payments

5-Years = $34,760,000 10-Years = $67,790,000

Summary of 2016 Bond Program – Updated Principal Repayment Schedule

15-Years = $126,085,000

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 Based upon favorable interest rates and taxable value increases that afforded the

• pportunity to accelerate the repayment period, the bond payments for the 2016

Bond Program are projected to be $84,852,207 less than the original cost communicated to voters.  The District will fully implement the 2016 Bond Program with a debt service tax rate increase of 7.66 cents – which is 5.15 cents or 40.2% lower than communicated to voters.

Summary of 2016 Bond Program

Summary of Updated Financing Plan – 2016 Bond Program

Description Voter Education Material Actual/Updated Financing Plan Difference Projected Interest Rate – Series 2016 School Building Bonds 4.50% 2.80% (1.70%) Maximum Projected I&S Tax Rate Increase – Year 2016/17 12.81 Cents 7.66 Cents (5.15 Cents) Average Taxable Home Value $ 275,739 $ 340,206 $ 64,467 Projected Annual I&S Tax Increase – Average Taxable Home Value $ 353.28 $ 260.60 ($ 92.68)

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Source: Texas Education Agency – PEIMS, Texas Comptroller of Public Accounts – Property Tax Assistance Division and the MAC of Texas – As of August 31, 2017.

Statewide Debt Comparison

 GCISD Receives no State funding for facilities or capital improvements  2016/17 Student Enrollment: Of the 1,023 school districts, Grapevine- Colleyville ISD has the 87th largest student enrollment in the State of Texas.  Total Tax Rate: Grapevine-Colleyville ISD’s “Total Tax Rate” ranks 302nd of the 1,023 Texas school districts.  Debt Service Tax Rate: Grapevine-Colleyville ISD’s “Debt Service Tax Rate” ranks 196th of the 1,023 Texas school districts.  Bond Principal as a Percentage of Taxable Value: Grapevine-Colleyville ISD’s debt burden ranks 461st of the 1,023 Texas school districts as a percentage

• f taxable values that secure repayment of the District’s bonds.

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Ranked By 2016/17 Student Enrollment

157,886 62,181 57,133 54,173 53,257 41,038 34,792 34,309 25,276 24,851 23,857 23,120 15,215 13,857 12,824 9,747 8,208 7,866

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Dallas ISD Arlington ISD Garland ISD Plano ISD Lewisville ISD Mesquite ISD Irving ISD Mansfield ISD Carrollton-Farmers Branch ISD McKinney ISD Birdville ISD Hurst-Euless- Bedford ISD Crowley ISD Grapevine- Colleyville ISD Duncanville ISD Desoto ISD Carroll ISD Cedar Hill ISD Student Enrollment Source: Texas Education Agency – PEIMS and Texas Fast Growth School Coalition.

Grapevine- Colleyville ISD

Comparison of Certain Non-Fast Growth DFW School Districts

 “Non-Fast Growth School District” – During a 5-Year Period:

• Enrollment growth of less than 10%.

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Ranked By Bond Principal Outstanding as a Percent of Taxable Value

6.98% 6.43% 5.89% 4.98% 4.78% 3.95% 3.67% 3.64% 3.35% 3.25% 3.17% 3.15% 2.99% 2.75% 2.67% 2.02% 1.84% 1.07% 0% 2% 4% 6% 8% Mesquite ISD Crowley ISD Mansfield ISD Duncanville ISD Desoto ISD McKinney ISD Cedar Hill ISD Irving ISD Lewisville ISD Carroll ISD Garland ISD Arlington ISD Grapevine- Colleyville ISD Birdville ISD Dallas ISD Plano ISD Hurst-Euless- Bedford ISD Carrollton-Farmers Branch ISD Bond Principal Outstanding Per TAV Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division and The MAC of Texas – As of August 31, 2017. Includes Voted and M&O Debt.

Comparison of Certain Non-Fast Growth DFW School Districts

Grapevine- Colleyville ISD

 Grapevine-Colleyville ISD’s “Bond Principal Outstanding” as a percentage of taxable values is 2.99% – Lower than the majority of the non-fast growth DFW school districts.

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Ranked By Total Tax Rate – Year 2017/18

Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division. $1.67000 $1.62000 $1.54000 $1.52148 $1.51600 $1.49000 $1.46000 $1.46000 $1.45390 $1.43900 $1.43140 $1.40750 $1.39670 $1.38500 $1.38100 $1.36867 $1.28209 $1.26300 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 Crowley ISD McKinney ISD Mansfield ISD Duncanville ISD Cedar Hill ISD Desoto ISD Garland ISD Mesquite ISD Birdville ISD Plano ISD Irving ISD Lewisville ISD Grapevine- Colleyville ISD Carroll ISD Carrollton-Farmers Branch ISD Arlington ISD Dallas ISD Hurst-Euless- Bedford ISD Total Tax Rate

Comparison of Certain Non-Fast Growth DFW School Districts

Grapevine- Colleyville ISD

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Ranked By Debt Service Tax Rate – Year 2017/18

Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division. $0.50000 $0.50000 $0.48148 $0.47600 $0.45000 $0.42000 $0.42000 $0.41390 $0.36750 $0.35670 $0.34500 $0.32867 $0.32000 $0.26900 $0.26140 $0.24204 $0.22300 $0.21100 $0.10 $0.20 $0.30 $0.40 $0.50 Crowley ISD Mansfield ISD Duncanville ISD Cedar Hill ISD McKinney ISD Garland ISD Mesquite ISD Birdville ISD Lewisville ISD Grapevine- Colleyville ISD Carroll ISD Arlington ISD Desoto ISD Plano ISD Irving ISD Dallas ISD Hurst-Euless- Bedford ISD Carrollton-Farmers Branch ISD Debt Service Tax Rate

Comparison of Certain Non-Fast Growth DFW School Districts

Grapevine- Colleyville ISD

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Source: The Municipal Advisory Council of Texas, The Bond Review Board and Texas Education Agency.

Regions 10 & 11 ESC Texas School Districts – Bond Elections Over $100 Million – Last 5-Years

 School districts within Regions 10 & 11 ESC have held 36 successful bond elections over $100 million over the last 5-years, totaling over $12.3 billion.

Texas School Districts Within Regions 10 & 11 ESC – 36 Successful Bond Elections Over $100 Million Since Year 2013 Totaling $12,364,358,461

No. Issuer Election Date Bonds Approved No. Issuer Election Date Bonds Approved 1 Dallas ISD November 3, 2015 $ 1,600,000,000 21 Coppell ISD May 7, 2016 $ 249,040,000 2 Frisco ISD May 10, 2014 775,000,000 22 Grapevine-Colleyville ISD May 7, 2016 248,975,000 3 Denton ISD May 5, 2018 750,500,000 23 Little Elm ISD November 7, 2017 239,500,000 4 Fort Worth ISD November 7, 2017 749,735,000 24 McKinney ISD May 7, 2016 220,000,000 5 Lewisville ISD May 6, 2017 737,550,000 25 Carroll ISD May 6, 2017 208,000,000 6 Arlington ISD May 10, 2014 663,100,000 26 Hurst-Euless-Bedford ISD May 5, 2018 199,000,000 7 Eagle Mt.-Saginaw ISD November 7, 2017 524,755,000 27 Sherman ISD November 7, 2017 176,000,000 8 Fort Worth ISD November 5, 2013 489,860,000 28 Keller ISD November 4, 2014 169,500,000 9 Plano ISD May 7, 2016 481,000,000 29 Argyle ISD May 6, 2017 166,000,000 10 Garland ISD November 4, 2014 455,500,000 30 Birdville ISD November 4, 2014 163,200,000 11 Richardson ISD May 7, 2016 437,085,000 31 Grand Prairie ISD November 3, 2015 156,000,000 12 Northwest ISD May 6, 2017 399,000,000 32 Anna ISD May 7, 2016 155,000,000 13 Highland Park ISD November 3, 2015 361,400,000 33 Melissa ISD May 7, 2016 150,000,000 14 Mesquite ISD May 5, 2018 325,000,000 34 Cleburne ISD May 7, 2016 130,558,461 15 Denton ISD November 5, 2013 312,000,000 35 Lancaster ISD May 9, 2015 125,900,000 16 Mesquite ISD May 9, 2015 280,000,000 36 Waxahachie ISD May 9, 2015 125,000,000 17 Mansfield ISD May 6, 2017 275,000,000 37 Crandall ISD May 6, 2017 125,000,000 18 Allen ISD November 3, 2015 272,580,000 38 Community ISD November 7, 2017 115,755,000 19 Midlothian ISD November 8, 2016 268,000,000 39 Duncanville ISD November 4, 2014 102,545,000 20 Rockwall ISD November 3, 2015 256,820,000

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Summary

 GCISD is an “Economic Driver” in community.  Single Family Home Values represent 46.2% of GCISD’s total property values.  Business/Commercial and Other values represent 53.8% of GCISD’s total property values.  Home values in GCISD have increased by 36.6% since year 2012/13.  GCISD’s “Recapture” payment to the State has increased by 57.7% over the same period.  In 2012/13, average taxable home of $249,024 - GCISD taxes of $3,287 In 2017/18, average taxable home of $340,206 – GCISD taxes of $4,752 – Difference of $1,465.  GCISD’s available “M&O Revenues Per Student” have increased by $62 over the last 6-years.

36

Summary

 GCISD has held four (4) bond elections, totaling $615,385,000, that were approved by voters over the last 20-years.  Over the last 20-years, GCISD’s “Recapture” payment to the State has totaled $596,883,216.  GCISD’s principal amount of bonds as a percent of taxable values has declined from 4.5% to 3.0% or 33% over the last 20-years.  GCISD’s “Aa1” independent bond rating received on July 14, 2017 is in the 99th percentile of school districts in the State of Texas and the United States.

37

Summary

 2016 Bond Program

• $34,760,000 Repaid in 5-years; and
• $67,790,000 Repaid in 10-Years.

Summary of Updated Financing Plan – 2016 Bond Program

Description Voter Education Material Actual/Updated Financing Plan Difference Projected Interest Rate – Series 2016 School Building Bonds 4.50% 2.80% (1.70%) Maximum Projected I&S Tax Rate Increase – Year 2016/17 12.81 Cents 7.66 Cents (5.15 Cents) Average Taxable Home Value $ 275,739 $ 340,206 $ 64,467 Projected Annual I&S Tax Increase – Average Taxable Home Value $ 353.28 $ 260.60 ($ 92.68)

38

Questions

39

BOK Financial Securities, Inc. – Specialized Texas School District Finance Team

Joshua M. McLaughlin

Managing Director Co-Director of Texas Public Finance 333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: jmclaughlin@bokf.com Direct: 214.576.0878 │ Mobile: 972.897.0503 │ Fax: 214.576.0890

Alison M. Long

Investment Banker Texas Public Finance 333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: alison.long@bokf.com Direct: 214.576.0881 │ Mobile: 254.744.4555 │ Fax: 214.576.0890

John H. Robuck

Managing Director Texas Public Finance 1401 McKinney Street, Suite 1000 | Houston, Texas 77010 E-Mail: jrobuck@bokf.com Direct: 713.289.5897 │ Mobile: 281.610.8335 │ Fax: 713.354.0258

William J. Gumbert

Managing Director Director of Texas Public Finance 333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: bgumbert@bokf.com Direct: 214.576.0880 │ Mobile: 214.212.3153 │ Fax: 214.576.0890

• Dr. Cathy Bryce

Investment Banker Texas Public Finance 333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: cbryce@bokf.com Mobile: 214.477.5972 │ Fax: 214.576.0890

Steven Murray

Analyst Texas Public Finance 333 West Campbell Road, Suite 350 | Richardson, Texas 75080 E-Mail: steven.murray@bokf.com Direct: 214.576.0875 │ Mobile: 214.507.1355 │ Fax: 214.576.0890