Financing the Future Five-Year Financial Forecast January 22, 2018

Five-Year Financial Forecast General Assumptions The Five-Year Financial Forecast is based on the following general assumptions: Student Enrollment Templeton Demographics Assessed Value of Taxable Property District Estimate CPTD Index Value District Estimate Maintenance & Operations Tax Rate $1.0400 Interest & Sinking Tax Rate $0.4500 Texas Legislature Current Law

Northwest ISD General Fund Budget Looking Back Year Current Expenditures Enrollment ASATR Loss Revenues Over /Under Expenditures 2012-2013 $130,806,901 17,752 $ 0 $ 5,030,029 2013-2014 $141,130,355 18,893 $ 11,668,103 2014-2015 $155,714,478 19,760 $ 2,933,823 2015-2016 $169,836,170 20,900 $ 782,374 2016-2017 $183,602,010 21,964 $ 3,282,998 2017-2018 $198,244,134 23,163 $200,265,780 23,123 $ 4,007,171 $ 5,844,659

Northwest ISD General Fund Budget The Challenge Year Current Expenditures Enrollment ASATR Loss Revenues Over /Under Expenditures 2017-2018 $198,244,134 23,163 $ 0 $200,265,780 23,123 $ 4,007,171 $ 5,844,659 2018-2019 $212,404,809 24,271 $ 9,520,855 $12,135,621 2019-2020 $225,198,355 25,480 $ 9,198,572 $22,285,940 2020-2021 $238,942,536 26,864 $ 9,584,898 $24,189,161 2021-2022 $253,498,139 28,336 $16,520,408 $32,608,174 2022-2023 $268,271,392 29,755 $17,347,711 $32,640,529

Five-Year Financial Forecast Property Tax Rates Base M&O Tax Rate $1.00 Base Tax Rate Board No Recapture 0.04 “Golden Pennies” Election No Recapture 0.02 “Silver Pennies” Election Recaptured 0.11 “Copper Pennies” Maximum M&O Tax Rate $1.17 17-18 Max Remaining M&O Tax Rate $1.04 $1.17 $0.13 I&S Tax Rate 0.45 0.50 0.05 2017 – 2018 Tax Rate $1.49 $1.63 $0.18

Five-Year Financial Forecast Outstanding Authorized Bonds On May 6, 2017, District voters passed a $399 million bond election. Enrollment is expected to increase by an additional 6,200 students during the next five years. The bond will provide for an additional 7,000 student seats. Authorized, but unissued unlimited tax bonds therefore total $399,000,000. Student Population Growth Aging Conditions of Existing Facilities Safety & Security of our Students & Staff Technology Infrastructure & Devices Advancing Student Programs