3Q13 Quarterly Report

Lewisville Independent School District 3Q13 Quarterly Report Learn from Yesterday Understand Today Plan for Tomorrow

Economic Conditions Texas has created more than 270 thousand non-farm jobs in the last 12 months. (Texas Comptroller s Office) The state's unemployment rate has been at or below the national rate for 82 consecutive months. (http://www.thetexaseconomy.org/economic-outlook/ ) DFW is the 4 th largest MSA in the country behind only NYC, LA and Chicago (City Journal Winter 2013) Unemployment rates - Texas Labor Market Information (October 2013) - U.S. 7.0% - Texas 6.0% - DFW MSA 5.9% - Denton County 5.3% - Lewisville 6.2% Apartment vacancy rate is below 6% which has led to a record high average monthly rent of $861, a 3.4% increase over last year. DFW builders put up 5,861 new homes in the last quarter, a 27 percent increase year over year. (Dallas Business Journal) 2

National Economic Overview Top Job Growth Markets Ranked by Percent Change in Emp. Sept. 2013 7 out of the top 10 job growth cities are in Texas. Source: Forbes Magazine 3

National Economic Overview Top 5 MSAs Ranked by Annualized New Home Starts 2013 Source: Metrostudy 4

DFW Housing Market Starts and Closings Annual Starts & Closings 60,000 50,000 40,000 30,000 20,000 10,000 Annual Starts Annual Closings 21,013 18,855-3Q03 3Q04 3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 5

DFW Housing Market Multiple Listing Service YTD SFD Activity & Inventory Sept-13 %Change YTD Sales 69,256 20% Average Price 226,901 9% Median Price 174,500 10% Listings 23,422-14% DOM 52-25% Monthly Supply 3.2-28% Source: Texas A&M Real Estate Center for NTREIS 6

DFW New Home Ranking Report ISD Ranked by Annual Closings 3Q13 Rank District Name Annual Starts Annual Closings VDL Future 1 Frisco ISD 3,008 2,534 4,072 9,073 2 Northwest ISD 1,260 1,101 1,750 22,174 3 Denton ISD 1,234 1,101 2,330 14,585 4 Keller ISD 813 844 1,269 3,218 5 Lewisville ISD 946 834 1,598 2,549 6 Dallas ISD 892 793 2,138 7,329 7 Prosper ISD 918 771 1,494 15,320 8 McKinney ISD 714 662 1,247 7,225 9 Eagle Mtn. - Saginaw ISD 725 661 1,603 20,004 10 Little Elm ISD 635 653 807 7,031 11 Mansfield ISD 618 615 757 5,692 12 Allen ISD 606 563 966 1,373 13 Rockwall ISD 555 442 1,630 8,108 14 Crowley ISD 374 406 1,897 8,229 15 Plano ISD 372 393 828 1,361 16 Forney ISD 441 378 1,401 11,477 17 Wylie ISD 344 356 574 5,324 18 Fort Worth ISD 347 347 1,069 4,638 19 Burleson ISD 391 335 727 3,662 20 Carrollton-Farmers Branch ISD 295 329 408 923 21 Anna ISD 348 312 376 3,680 22 Midlothian ISD 342 309 1,012 14,268 23 Garland ISD 299 306 613 3,141 24 Waxahachie ISD 271 226 931 9,085 25 HEB ISD 292 205 431 6,146 26 Birdville ISD 198 205 170 376 27 Weatherford ISD 234 200 697 604 28 Aledo ISD 278 196 806 15,618 29 Royse City ISD 226 196 955 7,271 30 Melissa ISD 169 195 234 5,420 7

Annual Closing Distribution 3Q13 Top 10 Subdivisions - 3Q13 (Ranked by Annual Closings) Rank Subdivision Annual Starts Annual Closings 1 Castle Hills (Lewisville) 235 266 2 Chase Oaks Addition 47 61 3 Quail Creek North 43 46 4 Kings Grant Addition 54 41 5 Villas of Indian Creek TH'S 58 38 6 Suncrest @ Flower Mound 41 36 7 Austin Waters Townhomes 33 31 8 Flower Mound Oaks 32 27 9 Carrington Village 31 25 10 Austin Waters 16 24 TOTALS 590 595 8

Vacant Developed Lots 3Q13 Top 10 Subdivisions - 3Q13 (Ranked by remaining Vacant Developed Lots) Rank Subdivision VDL Future 1 Castle Hills (Lewisville) 165 0 2 Lakeside DFW (Flower Mound) 122 44 3 Normandy Estates 105 0 4 Shops at Prestonwood, The 103 0 5 Lakeridge Townhomes 97 0 6 Mustang Park (Carrollton) 94 291 7 Hills of Kingswood, The 82 441 8 Townhomes @ Continental Square 72 0 9 Settler's Village Townhomes 63 0 10 District of Highland Village 61 0 TOTALS 964 776 9

Future Lots 3Q13 Top 10 Subdivisions - 3Q13 (Ranked by Future Inventory) Rank Subdivision VDL Future 1 Hills of Kingswood, The 82 441 2 Mustang Park (Carrollton) 94 291 3 Wyndale Meadows 0 232 4 Mustang Park Townhomes 0 176 5 Manors at Vista Ridge, The 0 145 6 Creekside at Heritage Park 0 139 7 Terracina 33 119 8 Orchard Flower 0 102 9 Twin Creeks Addition (Frisco) 0 95 10 Legends (Flower Mound) 0 91 TOTALS 209 1,831 10

Overall Housing Data By Elementary Attendance Zone Elementary Annual Starts Quarter Starts Annual Closings Quarter Closings Occupied Models Finished Vacant Under Const. Inventory Vacant Dev. Lots Future Total BLUEBONNET 13 1 26 2 610 1 1 4 6 1 190 807 BRIDLEWOOD 4 0 3 0 1356 0 0 2 2 9 0 1367 CAMEY 0 0 0 0 563 0 0 0 0 0 0 563 CASTLE HILLS 240 42 268 61 2994 5 12 62 79 165 0 3238 CENTRAL 0 0 0 0 167 0 0 0 0 0 70 237 COLLEGE STREET 0 0 0 0 290 0 0 0 0 0 0 290 COYOTE RIDGE 80 36 50 18 1255 6 3 40 49 72 49 1425 CREEKSIDE 47 2 61 11 363 1 3 2 6 72 0 441 DEGAN 0 0 0 0 126 0 0 0 0 0 0 126 DONALD 12 4 0 0 0 1 0 11 12 33 50 95 ETHRIDGE 54 11 41 17 1141 1 3 10 14 127 0 1282 FLOWER MOUND 4 1 2 0 611 0 0 2 2 59 91 763 FOREST VISTA 0 0 0 0 125 0 0 0 0 0 0 125 GARDEN RIDGE 0 0 0 0 3 0 0 0 0 0 102 105 HEBRON VALLEY 0 0 0 0 1561 0 0 0 0 0 0 1561 HEDRICK 0 0 0 0 288 0 0 0 0 0 0 288 HERITAGE 31 4 25 5 607 1 2 14 17 142 166 932 HICKS 50 11 35 10 2725 3 7 29 39 240 550 3554 HIGHLAND VILLAGE 0 0 0 0 529 0 0 0 0 0 0 529 HOMESTEAD 4 4 2 2 1216 1 1 1 3 16 22 1235 INDEPENDENCE 0 0 0 0 0 0 0 0 0 0 232 232 INDIAN CREEK 77 32 64 17 1123 4 6 32 42 201 467 1833 LAKELAND 0 0 1 1 15 0 0 0 0 0 0 15 LEWISVILLE 0 0 0 0 209 0 0 0 0 0 40 249 LIBERTY 10 3 8 2 2045 0 3 6 9 47 64 2165 MCAULIFFE 1 0 2 1 2205 0 0 0 0 21 0 2226 MORNINGSIDE 0 0 0 0 1758 0 0 0 0 0 0 1758 OLD SETTLERS 6 3 5 1 1419 0 0 4 4 141 62 1626 PARKWAY 0 0 0 0 710 0 0 0 0 0 0 710 PETERS COLONY 49 6 55 11 636 1 2 9 12 11 99 758 POLSER 0 0 0 0 451 0 0 0 0 0 0 451 PRAIRIE TRAIL 58 9 36 7 1350 2 0 21 23 93 0 1466 ROCKBROOK 114 37 72 12 689 4 7 66 77 111 258 1135 SOUTHRIDGE 31 7 25 10 537 0 5 7 12 1 0 550 STEWARTS CREEK 0 0 0 0 307 0 0 0 0 0 0 307 TIMBER CREEK 0 0 0 0 133 0 0 0 0 0 0 133 VALLEY RIDGE 0 0 0 0 1391 0 0 0 0 0 0 1391 VICKERY 32 11 27 5 812 1 1 14 16 15 0 843 WELLINGTON 29 6 26 12 1430 2 1 9 12 21 37 1500 Grand Total 946 230 834 205 33,750 34 57 345 436 1,598 2,549 38,311 11

Active Elementary Zones Map The Bridges Phase 1 (2015) 194 Futures 806 Platinum Open 312 Building 300 Proposed SF* VDL 0 Futures 325 Multi-family The Islands Phase 1 (2015) 393 Futures 4,107 Single Family Austin Waters VDL 4 Futures 50 Castle Hills VDL 165 Futures 78 Somerset Waters Futures 580 Proposed SF* VDL 0 Futures 380 12

Multi-Family Map Existing Apartment Complexes Total Complexes 103 Total Units 29,450 Elem Students 4,240 MS Students 1,531 HS Students 1,843 Total Students 7,522 Average Student Yield 0.255 13

Enrollment History Year (OCT) EE/PK K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Totals Total Growth Total % 2009/10 1,253 3,745 3,961 3,945 3,971 4,112 4,010 3,918 3,829 3,756 4,328 3,928 3,252 3,292 51,300 2010/11 1,248 3,697 3,825 3,894 3,932 3,977 4,084 3,949 3,960 3,854 4,274 3,960 3,331 3,454 51,439 139 0.3% 2011/12 1,415 3,570 3,855 3,817 3,896 3,959 4,020 4,136 4,040 3,979 4,078 3,919 3,702 3,485 51,871 432 0.8% 2012/13 1,689 3,613 3,701 3,840 3,815 3,940 3,996 4,065 4,170 4,136 4,144 3,991 3,736 3,651 52,487 616 1.2% 2013/14 1,718 3,493 3,759 3,782 3,915 3,900 4,004 4,017 4,106 4,177 4,278 4,033 3,873 3,696 52,751 264 0.5% *Yellow box = largest grade per year *Green box = second largest grade per year Cohort Analysis K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 3 Year Avg. 0.981 1.040 1.005 1.007 1.013 1.012 1.010 1.014 1.010 1.045 0.956 0.953 1.007 2010/11 0.987 1.021 0.983 0.997 1.002 0.993 0.985 1.011 1.007 1.138 0.915 0.848 1.062 2011/12 0.966 1.043 0.998 1.001 1.007 1.011 1.013 1.023 1.005 1.058 0.917 0.935 1.046 2012/13 1.012 1.037 0.996 0.999 1.011 1.009 1.011 1.008 1.024 1.041 0.979 0.953 0.986 2013/14 0.967 1.040 1.022 1.020 1.022 1.016 1.005 1.010 1.002 1.034 0.973 0.970 0.989 The size of Entering and Exiting classes impact enrollment change as much and sometimes more than actual growth. 14

Ten Year Forecast By Grade Level Year (OCT) EE/PK K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Total Totals Growth Total % 2009/10 1,253 3,745 3,961 3,945 3,971 4,112 4,010 3,918 3,829 3,756 4,328 3,928 3,252 3,292 51,300 2010/11 1,248 3,697 3,825 3,894 3,932 3,977 4,084 3,949 3,960 3,854 4,274 3,960 3,331 3,454 51,439 139 0.3% 2011/12 1,415 3,570 3,855 3,817 3,896 3,959 4,020 4,136 4,040 3,979 4,078 3,919 3,702 3,485 51,871 432 0.8% 2012/13 1,689 3,613 3,701 3,840 3,815 3,940 3,996 4,065 4,170 4,136 4,144 3,991 3,736 3,651 52,487 616 1.2% 2013/14 1,718 3,493 3,759 3,782 3,915 3,900 4,004 4,017 4,106 4,177 4,276 4,033 3,873 3,696 52,751 264 0.5% 2014/15 1,718 3,600 3,652 3,776 3,865 3,994 3,946 4,015 4,090 4,169 4,327 4,162 3,911 3,846 53,069 354 0.7% 2015/16 1,718 3,680 3,736 3,667 3,835 3,936 4,026 3,947 4,107 4,158 4,336 4,217 4,065 3,866 53,293 224 0.4% 2016/17 1,718 3,732 3,814 3,767 3,735 3,906 3,972 4,092 4,003 4,148 4,288 4,216 4,101 4,045 53,536 243 0.5% 2017/18 1,718 3,807 3,896 3,837 3,823 3,804 3,940 3,942 4,133 4,079 4,290 4,177 4,095 4,068 53,609 73 0.1% 2018/19 1,718 3,887 3,975 3,939 3,924 3,894 3,845 3,923 4,012 4,216 4,224 4,175 4,074 4,060 53,865 257 0.5% 2019/20 1,718 3,863 4,036 3,998 4,017 3,978 3,930 3,846 3,994 4,058 4,360 4,108 4,064 4,033 54,002 137 0.3% 2020/21 1,718 3,936 4,016 4,077 4,076 4,080 4,014 3,913 3,909 4,046 4,203 4,243 4,007 4,028 54,265 263 0.5% 2021/22 1,718 3,962 4,088 4,059 4,154 4,139 4,124 3,996 3,972 3,974 4,194 4,089 4,137 3,971 54,576 311 0.6% 2022/23 1,718 3,984 4,118 4,125 4,136 4,215 4,180 4,120 4,065 4,025 4,118 4,078 3,984 4,094 54,959 383 0.7% 2023/24 1,718 4,024 4,140 4,156 4,204 4,195 4,258 4,182 4,187 4,125 4,171 4,006 3,975 3,945 55,285 326 0.6% Enrollment growth in the next few years through increased housing, changing multi-family yields and increased single family yields. Current 9 th -12 th enrollment is 1,300 students larger than KG-3 rd Enrollment begins to balance through the term of this forecast. 15

Five Year Forecast By Campus Optimal Current ENROLLMENT PROJECTIONS (Oct.) CAMPUS Capacity 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 BLUEBONNET ELEMENTARY 535 482 469 455 461 481 509 BRIDLEWOOD ELEMENTARY 792 527 482 440 405 404 399 CAMEY ELEMENTARY 535 506 504 509 528 550 562 CASTLE HILLS ELEMENTARY 713 795 811 817 816 832 830 CENTRAL ELEMENTARY 1,287 965 970 975 1,009 1,013 1,022 COLLEGE ST. ELEMENTARY 277 352 354 362 363 371 363 COYOTE RIDGE ELEMENTARY 673 609 602 624 623 626 632 CREEKSIDE ELEMENTARY 535 454 478 494 503 524 550 DEGAN ELEMENTARY 673 628 629 624 611 590 587 DONALD ELEMENTARY 752 499 535 563 586 592 603 ETHRIDGE ELEMENTARY 554 521 519 522 515 515 510 FLOWER MOUND ELEMENTARY 574 504 479 472 465 442 449 FOREST VISTA ELEMENTARY 832 550 569 571 550 539 550 GARDEN RIDGE ELEMENTARY 515 462 446 431 426 423 448 HEBRON VALLEY ELEMENTARY 792 607 589 562 552 561 574 HEDRICK ELEMENTARY 792 583 590 570 573 592 587 HERITAGE ELEMENTARY 871 673 645 634 627 607 618 HICKS ELEMENTARY 673 632 652 648 648 673 718 HIGHLAND VILLAGE ELEMENTARY 495 380 363 364 354 341 346 HOMESTEAD ELEMENTARY 634 626 621 593 592 586 607 INDEPENDENCE ELEMENTARY 931 722 773 853 890 938 979 INDIAN CREEK ELEMENTARY 713 591 593 586 604 601 619 16

Five Year Forecast By Campus Optimal Current ENROLLMENT PROJECTIONS (Oct.) CAMPUS Capacity 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 JACKSON EARLY ED. CENTER 717 717 717 717 717 717 LAKELAND ELEMENTARY 871 831 823 839 822 828 825 LEWISVILLE ELEMENTARY 713 775 812 830 863 898 915 LIBERTY ELEMENTARY 851 743 673 624 597 588 589 MCAULIFFE ELEMENTARY 614 476 478 485 492 505 517 MORNINGSIDE ELEMENTARY 535 433 411 398 387 379 390 OLD SETTLERS ELEMENTARY 871 665 627 607 580 567 567 OWEN ELEMENTARY 515 480 488 465 458 444 439 PARKWAY ELEMENTARY 673 566 580 598 596 614 635 PETERS COLONY ELEMENTARY 792 818 852 864 887 908 920 POLSER ELEMENTARY 634 489 497 512 520 538 540 PRAIRIE TRAIL ELEMENTARY 792 530 514 492 467 446 446 ROCKBROOK ELEMENTARY 832 714 735 767 774 803 855 SOUTHRIDGE ELEMENTARY 673 713 713 734 753 744 709 STEWARTS CREEK ELEMENTARY 436 449 460 472 481 489 496 TIMBER CREEK ELEMENTARY 535 481 462 456 438 430 424 VALLEY RIDGE ELEMENTARY 832 556 539 530 510 496 500 VICKERY ELEMENTARY 634 570 581 594 636 634 646 WELLINGTON ELEMENTARY 851 892 911 940 960 991 985 ELEMENTARY TOTALS 27,267 24,566 24,546 24,593 24,639 24,820 25,177 Elementary Absolute Change 21 20 47 46 181 357 Elementary Percent Change -0.09% -0.08% 0.19% 0.19% 0.73% 1.44% 17

Five Year Forecast By Campus MIDDLE SCHOOL CAMPUS Capacity 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 ARBOR CREEK MIDDLE SCHOOL 909 904 887 966 950 986 922 BRIARHILL MIDDLE SCHOOL 909 969 973 953 928 921 909 CREEK VALLEY MIDDLE SCHOOL 888 744 792 791 734 681 665 DELAY MIDDLE SCHOOL 1,015 897 969 972 1,018 1,010 1,082 DOWNING MIDDLE SCHOOL 846 660 624 587 561 530 477 DURHAM MIDDLE SCHOOL 846 763 770 792 878 918 984 FORESTWOOD MIDDLE SCHOOL 1,079 658 636 672 703 732 732 GRIFFIN MIDDLE SCHOOL 825 747 764 810 803 864 867 HEDRICK MIDDLE SCHOOL 867 657 649 644 627 603 614 HUFFINES MIDDLE SCHOOL 867 869 830 774 793 807 807 KILLIAN MIDDLE SCHOOL 1,121 923 959 946 973 972 1,042 LAKEVIEW MIDDLE SCHOOL 846 786 811 806 840 825 850 LAMAR MIDDLE SCHOOL 888 790 742 684 660 648 632 MCKAMY MIDDLE SCHOOL 910 1,129 1,088 1,070 1,024 948 932 SHADOW RIDGE MIDDLE SCHOOL 867 770 746 711 717 675 602 MIDDLE SCHOOL TOTALS 13,683 12,266 12,240 12,178 12,209 12,120 12,117 Middle School Absolute Change 72 26 62 31 89 3 Middle School Percent Change 66.67% 66.08% 65.35% 67.01% 65.92% 63.50% 18

Five Year Forecast By Campus HIGH SCHOOL CAMPUS Capacity 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 FLOWER MOUND 9th GRADE CAMPUS 0 934 868 850 851 830 HEBRON 9th GRADE CAMPUS 1193 884 868 894 990 931 938 MARCUS 9th GRADE CAMPUS 0 844 833 780 771 707 FLOWER MOUND HIGH SCHOOL 2903 3,303 2,503 2,510 2,579 2,553 2,476 HEBRON HIGH SCHOOL 3038 2,337 2,394 2,473 2,523 2,619 2,676 LEWISVILLE HIGH SCHOOL 2115 1,817 1,947 2,046 2,085 2,100 2,087 LEWISVILLE BEN HARMON HS 1148 1,156 1,195 1,169 1,180 1,220 1,239 LEWISVILLE KILLOUGH 1193 982 978 1,032 997 962 957 MARCUS HIGH SCHOOL 2543 3,223 2,398 2,412 2,394 2,323 2,252 THE COLONY HIGH SCHOOL 2228 1,964 1,973 2,034 2,060 2,088 2,159 HIGH SCHOOL TOTALS 16,361 15,666 16,034 16,271 16,438 16,418 16,321 High School Absolute Change 326 368 237 167 20 97 High School Percent Change 2.13% 2.35% 1.48% 1.03% -0.12% -0.59% ALTERNATIVE CAMPUSES Capacity 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 LEARNING CENTER 614 178 174 176 175 176 175 OTHER ALTERNATIVE 0 75 75 75 75 75 75 ALTERNATIVE CAMPUS TOTALS 614 253 249 251 250 251 250 DISTRICT TOTALS 57,925 52,751 53,069 53,293 53,536 53,609 53,865 District Absolute Change 264 318 224 243 73 257 District Percent Change 0.50% 0.60% 0.42% 0.46% 0.14% 0.48% 19

Summary District has areas that are experiencing enrollment decline as well as enrollment growth. New home construction has outpaced last year s totals in just the first 9 months of 2013. Apartment development also strong with several thousand units in development. Templeton Demographics uses a quarterly approach to assist the district with housing reports and updates to the projections as needed. District will likely continue to see steady growth as new developments are delivered. Enrollment in 2014/15 is expected to be slightly over 53,000 students. LISD is projected to grow 1,114 students in the next 5 years and 2,534 students by 2023/24 where enrollment in the district should be over 55,000 students. 20