Bond Models ReportA Dive Into Various Scenarios

Election Information Purpose of Meeting

Follow Up Conversation to 11/16 Meeting

Review Bond Sale Approaches Given Different

Variables

Direction on Bond Products/Structures Which

Best Fit LISD

| Variables

Bond TypesWhich Best Fit LISD?

Interest RatesWhen is the Next Crisis?

Bond SalesCan We Be More Efficient?

Property ValuesWhere are They Going?

Property Values

Best Case and Worse Case

| Most Significant Variable

| Property Values

2018/19 – 6%2019/20 – 4%2020/21 – 4%2021/22 – 4%2022/23 – 3%2023/24 – 3%2024/25 – 3%2025/26 – 3%2026/27 – 2%2027/28 – 2%2028/29 – 2%2029/30 – 2%

2030/31 to 2033/34 – 1.5%2034/35+ – 1%

BaseLine

BestCase

WorseCase

2018/19 – 6%2019/20 – 4%2020/21 – 2%2021/22 – 0%

2022/23 – (2)%2023/24 – (4)%2024/25 – (2)%2025/26 – 0%2026/27 – 0%2027/28 – 2%2028/29 – 2%2029/30 – 2%

2030/31 to 2033/34 – 1.5%2034/35+ – 1%

2018/19 – 9%2019/20 – 8%2020/21 – 6%2021/22 – 4%2022/23 – 3%2023/24 – 3%2024/25 – 3%2025/26 – 4%2026/27 – 5%2027/28 – 6%2028/29 – 7%2029/30 – 8%2030/31 – 7%2031/32 – 6%2032/33 – 5%

Less 1% a Year Until2036/37 & Holds at 1%

| Tax Rate

Hypothetical Reductions Current $0.47187

$0.47

$0.4675

$0.465

$0.4625

$0.46

$0.4575

$0.455

$0.4525

$0.45

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

2026/27+

| Variables

Buses/TechAmortize Over 5 Years

Principal Repaid in Year 5

ImprovementsAmortize Over 20 Years

Principal Repaid in Years 16-20

New FacilitiesAmortize Over 30 Years

Principal Repaid in Years 21-30

RefundingsNot Planned Into ModelsNo Advance Refundings

Bond SalesContinuous Improvement

| Bond Sales vs Expenses

Akin Elem SchoolSold September 2014

$ -0-

$2,292

$18,516,712

2014/15

2015/16

2016/17

| Bond Sales vs Expenses

Glen High SchoolSold January 2014

$8,227,890

$45,117,035

$46,003,013

$4,573,728

2013/14

2014/15

2015/16

2016/17

| Bond Sales vs Expenses

TechnologySold January 2014

$2,255,763

$12,083,830

$3,485,410

2013/14

2014/15

2015/16

| Model Approaches

66%

CIB Soft Put CP

9%25%

TraditionalApproach

Sold by Series to Match Asset Life to Debt TermAssets Under 10 Years are Non-Callable

Assets Over 10 Years are Callable in 10 Years

AlternativeApproach

Current Interest BondsPotentially Step Coupons

Best and Worse Case Models

Commercial Paper

| Bond Types

Agriculture Facilities$7,606,252

Technology$38,730,000

Buses$10,200,000

Grandstands & Softball$1,358,284

CTE Classrooms New Campus Construction

HVAC Work Transportation Facility VHS Addition

Soft Put BondsLand$61,934,695

LMS & VRHS Facilities$7,087,109

Monroe Stadium$1,100,000

PE & Traffic Gates$849,260

Secondary Access$3,000,000

Secured Vestibules$17,621,008

Support Vehicles$893,000

Theatre Arts$1,222,424

| Summary of Models Run

Worse Case ObservationsExcess Collections Used to create capacity in 2021/22 through 2027/28

Short calls, so ability to restructure in 2020/21 to 2022/23 pinch years

2037/38 to 2039/40 have structural deficits prior to any future elections

Available revenue capacity of $368,579,336 from 2023/24 to 2053/54

New Money Flexibility

Future Debt Service

Future Bond Capacity

| Summary of Models Run

Best Case ObservationsExcess Collections Used to retire some long-dated CABs

Short calls, so additional excess collections could be used to retire early

No observations

Available revenue capacity of $4,601,426,851 from 2023/24 to 2053/54

New Money Flexibility

Future Debt Service

Future Bond Capacity

| Summary of Models Run

Baseline ObservationsExcess Collections Used to create capacity in 2021/22

None

No observations

Available revenue capacity of $2,132,698,435 from 2023/24 to 2053/54

New Money Flexibility

Future Debt Service

Future Bond Capacity

| Model Analysis

Total Debt Service After 2017 Bond Program

$3,493,284,584Base Model

Best Case

Worse Case

$3,387,410,834

$3,460,336,328

Excess Collections Not Used in the Model

$20,595,826

$24,995,290

$ -0-

Election Information Next Steps

Information Needed for to 1/18 Board Meeting

Potential Bond Order(s) Selection of Underwriters Who Can Sell The Structures

Approved by the Board