Quarterly Report 2Q16

Hays Consolidated Independent School District Quarterly Report 2Q16 Learn from Yesterday Understand Today Plan for Tomorrow

Economic Conditions Austin Area (June 2016) 4.0% 38,400 new jobs National rate 1.7% Unemployment Rate 13,407 2,066 more than 2Q15 Job Growth U.S. 5.1% Texas 4.8% Austin MSA 3.3% Hays County 3.6% -0.2% Annualized Home Starts Sources: Texas Workforce Commission & Metrostudy 2

Buda-Kyle Housing Market Year-Over-Year Comparisons YTD Sales (661 Sales in June 2016) 17.4% Average Price ($245,788 in June 2016) Median Price ($238,485 in June 2016) 6.6% 5.5% Total Listings (195 in June 2016) Months Inventory (1.9 Months Supply) 18.7% 31.7% Source: Texas A&M Real Estate Center 3

Hays CISD Home Sales 2015 Home Sales by Type Hays CISD 2015 Home Sales by Type New Home Sales, 1,044, 34.89% Foreclosure, 82, 2.74% REO Sale, 178, 5.95% Regular Resale, 1,688, 56.42% The district had 2,992 home sales in 2015, and roughly 35% were of new homes The average sale price in 2015 for a new home was $243,347, a rise of 5.1% over 2014 The average sale price in 2015 for an existing home was $221,143 Source: Metrostudy and Williamson County Deed Transactions 4

Austin New Home Ranking Report ISD Ranked by Annual Closings 2Q16 Rank District Name Annual Starts Annual Closings VDL Future 1 Leander ISD 2,092 2,024 3,674 10,918 2 Hays CISD 1,673 1,471 1,595 34,818* 3 Round Rock ISD 1,274 1,298 1,644 3,999 4 Austin ISD 1,831 1,279 1,505 11,341 5 Pflugerville ISD 1,123 1,013 1,954 12,068 6 Georgetown ISD 1,075 996 1,425 18,169 7 Hutto ISD 728 733 1,168 3,331 8 Lake Travis ISD 659 636 2,210 2,722 9 Manor ISD 761 636 745 16,355 10 Del Valle ISD 735 542 802 32,431 11 Liberty Hill ISD 385 370 1,550 5,280 12 Dripping Springs ISD 323 321 1,114 3,712 13 Jarrell ISD 173 196 222 7,395 14 Elgin ISD 77 118 110 5,957 15 San Marcos ISD 150 112 95 8,595 16 Lockhart ISD 68 82 58 1,394 17 Bastrop ISD 73 75 1,439 17,789 18 Lago Vista ISD 52 57 539 3,273 19 Luling ISD 57 41 3 0 20 Taylor ISD 52 40 83 486 *Totals adjusted based on additional TD research Source: Metrostudy 5

New Housing Activity Hays CISD 1,600 Annual Starts Annual Closings Avg. Inventory 1,400 1,200 1,000 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 Starts 2010 2011 2012 2013 2014 2015 2016 Closings 2010 2011 2012 2013 2014 2015 2016 1Q 152 112 155 203 302 257 490 1Q 140 137 119 206 222 278 404 2Q 189 172 212 240 293 309 364 2Q 216 134 204 217 296 300 391 3Q 137 167 244 279 335 461 3Q 149 147 194 209 286 297 4Q 109 121 193 251 242 371 4Q 137 168 201 271 312 377 Total 587 572 804 973 1,172 1,398 854 Total 642 586 718 903 1,116 1,252 795 Annual start rate is now more than 1,600 homes The district is on pace to close 1,400+ homes in 2016 Current inventory supply is for 5.7 months 6

Annual Closing Distribution 2Q16 Elementary Annual Closings BLANCO VISTA 121 BUDA 94 CAMINO REAL 0 CARPENTER HILL 13 ELM GROVE 196 FUENTES 94 HEMPHILL 0 KYLE 91 NEGLEY 69 PFLUGER 148 SCIENCE HALL 52 TOBIAS 158 TOM GREEN 379 Grand Total 1,415 7

Vacant Developed Lots 2Q16 Elementary VDL BLANCO VISTA 251 BUDA 112 CAMINO REAL 0 CARPENTER HILL 285 ELM GROVE 45 FUENTES 34 HEMPHILL 0 KYLE 71 NEGLEY 125 PFLUGER 63 SCIENCE HALL 51 TOBIAS 214 TOM GREEN 344 Grand Total 1,595 8

Future Lots 2Q16 Elementary FUTURE BLANCO VISTA 5,578 BUDA 167 CAMINO REAL 60 CARPENTER HILL 1,331 ELM GROVE 0 FUENTES 2,804 HEMPHILL 6,445 KYLE 284 NEGLEY 10,166 PFLUGER 1,074 SCIENCE HALL 1,149 TOBIAS 1,520 TOM GREEN 4,240 Grand Total 34,818* *Totals adjusted based on additional TD research- added future developments include La Salle, Anthem, Crosswinds, Blanco River Ranch, Caldwell Ranch and Bailey Tract 9

District Housing Overview Hays CISD has 1,595 lots available to build on The district has more than 34,818 planned future lots 10

Residential Activity Sunfield Sunfield 4,725 total lots 3,905 futures 604 occupied 163 VDL 36 homes under construction Groundwork on 27 additional lots Building 200 homes per year Tom Green Elementary 11

Residential Activity Blanco Vista Blanco Vista 2,402 total lots 1,485 futures 572 occupied 251 VDL 54 homes U/C Building 160 homes per year Blanco Vista Elementary 12

Residential Activity White Oak Preserve and Stonewood Commons White Oak Preserve 190 total lots 127 future lots 8 U/C 55 VDL Building 60 homes a year $200K - $350K Buda Elementary Stonewood Commons 48 total lots 9 future lots 13 occupied 16 VDL 10 U/C $200K - $260K Buda Elementary 13

Residential Activity Crosswinds Crosswinds 1,748 total lots Phase 1 final plat under review with city Roadways are currently under construction Groundwork on Phase 1, 241 lots, starting late 2016 Split between Pfluger Elementary and Science Hall Elementary Phase 1 14

Residential Activity Bunton Creek Village and Great Hills Great Hills 290 delivered manufactured home lots Future Phase 6 with 69 lots under construction Phase 7 with 80 lots is in the planning process Construction is anticipated to begin Summer 2017 Owner anticipates build out after Phase 8 with 60 lots Hemphill Elementary Ph 6 Bunton Creek Village 735 total lots 385 future lots 268 occupied 34 VDL 45 homes U/C Building ~100 homes a year 147 lots under construction Additional groundwork coming fall 2016 Fuentes Elementary 15

Residential Activity Cypress Forest Cypress Forest 311 total lots 219 future lots 90 VDL 2 U/C Homebuilding began July 2016 Anticipate building 50-60 homes a year $200K - $400K Negley Elementary 16

Multi-Family Update 1 2 6 5 Marketplace Ave Extension 3 4 1 Apartment Fairway Landings at Plum Creek Units Low Income 216 Yes Status Under Review; starting construction Fall 2016 Impact Late 2017 Elem Zone Negley 2 Aria at Plum Creek 180 No Nearing completion Fall 2016 Negley Future Plum Creek 8 acres rezoned for MF 3 N/A No 2018 Kyle Apartments development 4 Oaks of Kyle 204 No Nearing completion Fall 2016 Fuentes Spring Science 5 Lakeside Crossing 288 No Adding 166 MH lots 2017 Hall 6 Hays Junction Apartments 207 No First units leasing Summer 2016 Fall 2016 Science Hall 17

Ten Year Forecast By Grade Level Year (Oct.) EE/PK K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Total Growth % Growth 2011/12 596 1,228 1,302 1,256 1,256 1,230 1,271 1,214 1,205 1,174 1,201 1,145 958 896 15,932 2012/13 643 1,267 1,295 1,335 1,287 1,297 1,255 1,333 1,232 1,237 1,306 1,126 1,049 906 16,568 636 3.99% 2013/14 620 1,348 1,348 1,317 1,380 1,325 1,368 1,303 1,362 1,258 1,337 1,266 1,017 1,006 17,255 687 4.15% 2014/15 601 1,344 1,425 1,396 1,386 1,408 1,397 1,405 1,358 1,414 1,372 1,307 1,129 1,006 17,948 693 4.02% 2015/16 626 1,298 1,406 1,481 1,438 1,455 1,468 1,434 1,457 1,402 1,542 1,356 1,186 1,105 18,654 706 3.93% 2016/17 626 1,360 1,400 1,486 1,562 1,523 1,540 1,527 1,494 1,494 1,550 1,507 1,246 1,114 19,429 775 4.15% 2017/18 626 1,412 1,452 1,475 1,572 1,646 1,611 1,602 1,584 1,541 1,631 1,503 1,413 1,190 20,258 829 4.27% 2018/19 626 1,466 1,509 1,522 1,550 1,663 1,752 1,691 1,654 1,634 1,689 1,586 1,382 1,352 21,076 818 4.04% 2019/20 626 1,542 1,576 1,591 1,604 1,651 1,778 1,816 1,747 1,706 1,785 1,659 1,465 1,329 21,874 798 3.79% 2020/21 626 1,639 1,662 1,653 1,678 1,711 1,771 1,846 1,871 1,806 1,867 1,731 1,536 1,399 22,796 921 4.21% 2021/22 626 1,717 1,736 1,750 1,756 1,772 1,808 1,837 1,910 1,923 1,975 1,811 1,594 1,468 23,684 888 3.89% 2022/23 626 1,799 1,854 1,837 1,873 1,863 1,890 1,872 1,896 1,976 2,102 1,915 1,672 1,521 24,695 1,012 4.27% 2023/24 626 1,887 1,908 1,940 1,942 1,980 1,963 1,961 1,922 1,957 2,159 2,036 1,765 1,597 25,643 948 3.84% 2024/25 626 1,968 2,038 2,009 2,058 2,065 2,094 2,038 2,005 1,973 2,139 2,091 1,874 1,685 26,663 1,020 3.98% 2025/26 626 2,049 2,098 2,135 2,127 2,192 2,193 2,158 2,083 2,049 2,156 2,071 1,924 1,789 27,650 987 3.70% *Yellow box = largest grade per year *Green box = second largest grade per year Hays CISD may reach 19,000 students by this fall, and more than 20,000 by 2017 5 year growth = 4,142 students 2020/21 enrollment = 22,796 10 year growth = 8,996 students 2025/26 enrollment = 27,650 18

Ten Year Forecast By Elementary Campus Current ENROLLMENT PROJECTIONS Campus Capacity 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 BLANCO VISTA ELEMENTARY 800 782 799 899 967 1,006 1,063 1,106 1,145 1,187 1,230 1,273 BUDA ELEMENTARY 702 499 490 496 486 494 501 537 572 608 638 641 CAMINO REAL ELEMENTARY 800 785 802 809 816 831 833 828 836 840 838 833 CARPENTER HILL ELEMENTARY 800 679 655 655 666 648 643 644 650 659 674 684 ELM GROVE ELEMENTARY 720 796 878 985 1,084 1,107 1,101 1,062 1,029 1,011 1,001 979 FUENTES ELEMENTARY 720 566 668 690 682 758 898 980 1,132 1,201 1,272 1,322 GREEN ELEMENTARY 714 660 768 853 938 1,023 1,144 1,252 1,376 1,496 1,629 1,767 HEMPHILL ELEMENTARY 720 906 898 872 858 863 848 904 976 1,053 1,147 1,247 KYLE ELEMENTARY 770 660 718 692 689 651 645 663 678 691 701 709 NEGLEY ELEMENTARY 780 759 772 783 787 851 911 983 1,068 1,170 1,276 1,377 PFLUGER ELEMENTARY 800 630 627 595 597 587 616 659 704 733 763 800 SCIENCE HALL ELEMENTARY 720 703 692 728 740 743 727 701 676 662 695 742 TOBIAS ELEMENTARY SCHOOL 720 747 730 737 778 806 810 846 900 935 994 1,046 ELEMENTARY SCHOOL TOTAL 9,766 9,172 9,497 9,794 10,088 10,368 10,740 11,165 11,742 12,246 12,858 13,420 Elementary Absolute Change 215 325 297 294 280 372 425 577 504 612 562 Elementary Percent Change 2.40% 3.54% 3.13% 3.00% 2.78% 3.59% 3.96% 5.17% 4.29% 5.00% 4.37% *Yellow box = campus exceeds stated enrollment capacity 3 elementary campuses are currently over stated capacity 8 elementary campuses may be over stated capacity by 2017 5 year elementary growth: 1,568 students 10 year elementary growth: 4,248 students 19

Ten Year Forecast By Middle School & High School Campus Current ENROLLMENT PROJECTIONS Campus Capacity 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 BARTON MIDDLE SCHOOL 900 1,027 692 711 771 830 887 915 938 958 989 1,042 CHAPA MIDDLE SCHOOL 765 731 779 844 869 924 945 950 984 1,021 1,061 1,145 DAHLSTROM MIDDLE SCHOOL 855 951 801 803 853 882 974 1,029 1,045 1,029 1,027 1,021 SIMON MIDDLE SCHOOL 765 634 784 820 853 886 910 910 916 919 950 1,000 MCCORMICK MIDDLE SCHOOL 900 0 676 711 772 804 822 832 850 878 900 948 WALLACE MIDDLE SCHOOL 765 950 783 838 861 943 985 1,034 1,011 1,035 1,089 1,134 MIDDLE SCHOOL TOTAL 4,950 4,293 4,515 4,727 4,979 5,269 5,523 5,670 5,744 5,840 6,016 6,290 Middle School Absolute Growth 116 222 212 252 290 254 147 74 96 176 274 Middle School Percent Growth 2.78% 5.17% 4.70% 5.33% 5.82% 4.82% 2.66% 1.31% 1.67% 3.01% 4.55% LIVE OAK ACADEMY 100 142 108 116 122 115 118 119 117 118 118 118 HAYS HIGH SCHOOL 2,250 2,611 2,721 2,915 2,976 3,075 3,206 3,359 3,579 3,754 3,917 3,999 LEHMAN HIGH SCHOOL 2,250 2,432 2,584 2,702 2,907 3,043 3,205 3,367 3,509 3,681 3,750 3,819 HIGH SCHOOL TOTAL 4,600 5,185 5,413 5,733 6,005 6,233 6,529 6,845 7,205 7,553 7,785 7,936 High School Absolute Growth 374 228 320 272 228 295 316 361 348 232 151 High School Percent Growth 7.77% 4.40% 5.92% 4.74% 3.80% 4.74% 4.83% 5.27% 4.82% 3.07% 1.94% HAYS CO JJAEP 4 4 4 4 4 4 4 4 4 4 4 ALTERNATIVE SCHOOL TOTAL 0 4 4 4 4 4 4 4 4 4 4 4 DISTRICT TOTAL 19,316 18,654 19,429 20,258 21,076 21,874 22,796 23,684 24,695 25,643 26,663 27,650 District Absolute Growth 706 775 829 818 798 921 888 1,012 948 1,020 987 District Percent Growth 3.9% 4.2% 4.3% 4.0% 3.8% 4.2% 3.9% 4.3% 3.8% 4.0% 3.7% *Yellow box = campus exceeds stated enrollment capacity 3 middle school campuses may be over stated capacity by this fall Both High School campuses are currently over stated capacity 5 year middle school growth: 1,230 students 5 year high school growth: 1,344 students 20

Summary Austin MSA new home starts are up 18.2% this year at the end of the second quarter. Hays CISD closed almost 400 new homes in 2Q16, nearly one hundred more than 2Q15 closes. More than a 35% of homes sold in Hays CISD were new homes at an average price of just over $243,000. McCormick Middle School will open next fall with approximately 670 students. HCISD can expect an increase of approximately 4,100 students during the next 5 years. 2020/21 enrollment projection: 22,796. Hays CISD is projected to have 27,650 students for the 2025/26 school year. www.tdemographics.com 21