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

2 Economic Conditions Texas added 1 new job for every 3 people from 2000 to 2013, the U.S. added 1 job for every 7 people, Texas outperformed the U.S. job creation rate by more than two-to-one. ( Forbes ) 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 81 consecutive months. ( ) 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 ( August 2013 ) - U.S. 7.6% - Texas 6.5% - DFW MSA 6.2% - Tarrant County 5.9% - Fort Worth 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 )

National Economic Overview Top Job Growth Markets Ranked by Percent Change in Emp. – Sept 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 5

DFW Housing Market Multiple Listing Service – YTD SFD Activity & Inventory Source: Texas A&M Real Estate Center for NTREIS 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 % 6

DFW New Home Ranking Report ISD Ranked by Annual Closings – 3Q13 RankDistrict NameAnnual StartsAnnual ClosingsVDLFuture 1Frisco ISD3,0082,5344,0729,073 2Northwest ISD1,2601,1011,75022,174 3Denton ISD1,2341,1012,33014,585 4Keller ISD ,2693,218 5Lewisville ISD ,5982,549 6Dallas ISD ,1387,329 7Prosper ISD ,49415,320 8McKinney ISD ,2477,225 9Eagle Mtn. - Saginaw ISD ,60320,004 10Little Elm ISD ,031 11Mansfield ISD ,692 12Allen ISD ,373 13Rockwall ISD ,6308,108 14Crowley ISD ,8978,229 15Plano ISD ,361 16Forney ISD ,40111,477 17Wylie ISD ,324 18Fort Worth ISD347 1,0694,638 19Burleson ISD ,662 20Carrollton-Farmers Branch ISD Anna ISD ,680 22Midlothian ISD ,01214,268 23Garland ISD ,141 24Waxahachie ISD ,085 25HEB ISD ,146 26Birdville ISD Weatherford ISD Aledo ISD ,618 29Royse City ISD ,271 30Melissa ISD ,420 7

Foreclosures 8 ISD1Q132Q133Q13 Dallas ISD Fort Worth ISD Arlington ISD Garland ISD Mansfield ISD Mesquite ISD Keller ISD Crowley ISD Grand Prairie ISD Birdville ISD De Soto ISD Lewisville ISD Frisco ISD Plano ISD Duncanville ISD Eagle Mt-Saginaw ISD Denton ISD Richardson ISD Rockwall ISD41 40 Irving ISD Carrollton-Farmers Branch ISD Hurst-Euless-Bedford ISD Northwest ISD McKinney ISD Little Elm ISD33 21 Azle ISD Grapevine-Colleyville ISD17914 Royse City ISD Carroll ISD456 Midlothian ISD30121

New Housing Activity 3Q13 starts are up above 350 for the second straight quarter, YTD starts are up 20% over 2012 YTD. Closings are maintaining the pace of starts and will likely be over 1,000 units for at least 7 straight years. Inventory is back up above 600 for the first time in more than 3 years. Northwest ISD Housing Activity 9 Starts Closings Q Q Q Q Q Q Q Q Total1,4201,0601,1161,0411,0921,003 Total1,7731,1201,1961,0181,140844

Annual Closing Distribution 3Q13 10 Top 10 Subdivisions - 3Q13 (Ranked by Annual Closings) RankSubdivision Annual Starts Annual Closings 1Sendera Ranch (Thompson) Trophy Club/Highlands at (Beck) Harmon Ranch Tehama Ridge9886 5Briarwyck (Roanoke)9377 6Trophy Club/Highlands at (Lakeview)7067 7Willow Ridge Estates (Ft. Worth)6467 8Trophy Club/Turnberry5445 9Valley Ridge Ranches, The6335 TOTALS839728

Vacant Developed Lots 3Q13 11 Top 5 Subdivisions - 3Q13 (Ranked by remaining Vacant Developed Lots) RankSubdivisionVDLFuture 1Sendera Ranch (Thompson) Fairway Ranch Valley Ridge990 4Trophy Club/Highlands at (Beck)9891 5Highlands Glen950 6Harmon Ranch Tehama Ridge830 8Willow Ridge Estates (Ft. Worth) Trophy Club/Highlands at (Lakeview) Willow Springs Ranch630 TOTALS9025,142

Future Lots 3Q13 12 Top 10 Subdivisions - 3Q13 (Ranked by Future Inventory) RankSubdivisionVDLFuture 1Tradition Sendera Ranch (Thompson) Sendera Ranch (Sendera Ranch) Bonds Ranch/Bonds Ranch (NWISD) Richmond0740 6Canyon Falls (Northlake)0726 7Trails of Fossil Creek Shale Creek Seventeen Lakes Elizabeth Creek Estates0539 TOTALS31516,121

13 Overall Housing Data By Elementary Attendance Zone Highest activity in the category Second highest activity in the category Third highest activity in the category Elementary Zone Annual Starts Quarter Starts Annual Closings Quarter ClosingsInventory Vacant Dev. LotsFuture Lots BECK CLARA LOVE COX ,202 GRANGER HASLET ,100 HATFIELD ,078 HUGHES JUSTIN LAKEVIEW NANCE ,511 PETERSON PRAIRIE VIEW ROANOKE ,216 SCHLUTER ,825 SENDERA RANCH ,802 SEVEN HILLS THOMPSON ,824 Grand Total1, , ,75022,174

Enrollment History *Yellow box = largest grade per year *Green box = second largest grade per year 14 Year (Oct.)EE/PKK1st2nd3rd4th5th6th7th8th9th10th11th12thTotalGrowth % 2009/ ,2271,2201,2181,1481,1271,1511,0581,1011,0441,1141, , / ,2841,2971,3031,2821,2011,2191,2301,1221,1161,2191, ,3701,2068.5% 2011/ ,3831,3911,4071,3681,3311,2911,3171,2811,1901,2781,2101, ,6261,2568.2% 2012/ ,4481,4651,4481,4661,4331,4021,4001,3751,3251,3441,3021, ,8111,1857.1% 2013/ ,5571,5901,5911,5711,6071,5741,3981,4381,4191,4781,2841,2101,128 19,1361,3257.4% EE/PKK1st2nd3rd4th5th6th7th8th9th10th11th12th 2010/ / / / Roll-up3001,557 1,5901,5911,5711,6071,5741,3981,4381,4191,4781,2841,21019, Prev Cohort3001,6741,7101,7271,7261,7221,7651,5691,4361,4841,5831,4121,1931,18420,4851,349 3-Year Cohort3001,6601,7181,7021,6851,6661,7281,6591,4501,4991,6031,4621,1921,15020,4751,339

15 Ten Year Forecast By Grade Level Year (Oct.)EE/PKK1st2nd3rd4th5th6th7th8th9th10th11th12thTotalGrowth % 2009/ ,2271,2201,2181,1481,1271,1511,0581,1011,0441,1141, , / ,2841,2971,3031,2821,2011,2191,2301,1221,1161,2191, ,3701,2068.5% 2011/ ,3831,3911,4071,3681,3311,2911,3171,2811,1901,2781,2101, ,6261,2568.2% 2012/ ,4481,4651,4481,4661,4331,4021,4001,3751,3251,3441,3021, ,8111,1857.1% 2013/ ,5571,5901,5911,5711,6071,5741,3981,4381,4191,4781,2841,2101,128 19,1361,3257.4% 2014/ ,6611,6901,6881,7041,6661,6951,5991,4581,5001,6181,4081,1971,185 20,3601,2246.4% 2015/ ,7601,7941,7891,7871,8031,7561,7331,6481,5051,7081,5781,3201,177 21,6491,2906.3% 2016/ ,8561,8981,899 1,9051,7811,7781,6911,7051,6451,4761,298 23,0211,3716.3% 2017/ ,9682,0122,0132,0172,0162,0081,9411,8341,8311,9461,6431,5391,455 24,5141,4936.5% 2018/ ,0962,1382,1432,1352,1522,1342,0451,9921,8862,0821,8851,5381,516 26,0331,5196.2% 2019/ ,2242,2692,2682,2642,2662,2812,1642,0932,0492,1462,0121,7681,514 27,6091,5756.1% 2020/ ,3592,3972,4052,3972,4132,4022,3192,2222,1522,3342,0751,8881,741 29,3951,7866.5% 2021/ ,5032,5462,5422,5452,5542,5602,4412,3792,2852,4432,2591,9471,853 31,1481,7536.0% 2022/ ,6552,700 2,6922,7152,7112,6022,5042,4482,5932,3642,1211,910 33,0061,8576.0% 2023/ ,8162,8642,8602,8592,8712,8832,7582,6702,5772,7772,5092,2212,081 35,0372,0316.2% *Yellow box = largest grade per year *Green box = second largest grade per year

16 Ten Year Forecast By Elementary School Campus CurrentProjections Elementary Schools2013/142014/152015/162016/172017/182018/192019/202020/212021/222022/232023/24 Beck Elementary ,0681,1181,1681,2061,2551,3021,349 Clara Love Elementary Cox Elementary Granger Elementary Haslet Elementary Hatfield Elementary Hughes Elementary Justin Elementary Lakeview Elementary Nance Elementary Peterson Elementary Prairie View Elementary Roanoke Elementary Sendera Ranch Elementary Seven Hills Elementary Schluter Elementay Thompson Elementary TOTAL ELEMENTARY9,78110,39510,98011,64712,32513,08913,86314,66415,54116,46417,444 Elementary growth

17 Ten Year Forecast By Middle School and High School Campus CurrentProjections Middle Schools2013/142014/152015/162016/172017/182018/192019/202020/212021/222022/232019/21 Chisholm Trail Middle School ,0381,1281,1631,2601,3411,4381,5451,661 Gene Pike Middle School ,0401,1361,1961,242 Medlin Middle School9761,0521,1201,1821,2171,2761,3511,4431,5261,6131,690 Tidwell Middle School9291,0381,1961,3751,5081,6191,7061,7491,7651,8291,900 Wilson Middle School ,0081,1201,2401,3711,512 TOTAL MIDDLE SCHOOL4,2554,5574,8865,2505,6065,9236,3066,6937,1057,5548,005 MIDDLE SCHOOL GROWTH High Schools2013/142014/152015/162016/172017/182018/192019/202020/212021/222022/232019/21 Northwest High School2,7162,8823,0933,3073,4693,6523,8244,0654,2734,5744,934 Byron Nelson High School2,2602,3992,5632,6902,9873,2423,4893,8464,1024,2874,526 Steele Accelerated High School90 Denton County JJAEP Denton Creek31 TOTAL HIGH SCHOOL5,1005,4085,7836,1246,5837,0217,4408,0388,5028,9889,587 HIGH SCHOOL GROWTH TOTAL19,13620,36021,64923,02124,51426,03327,60929,39531,14833,00635,036 Growth1,3251,2241,2901,3711,4931,5191,5751,7861,7531,8572,030 % Growth7.4%6.4%6.3% 6.5%6.2%6.1%6.5%6.0% 6.2%

Summary could see over 1,300 new homes. District has approximately 1,750 VDL, only a 18 month supply of lots Peterson, Thompson and Lakeview have all had over 140 starts in the last 12 months. Northwest ISD can expect an increase of approximately 6,247 students during the next 5 years. 2017/18 enrollment projection 23,927 and will likely exceed 25,000 in the following year.