NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 14. FAIR VALUE OF FINANCIAL INSTRUMENTS 15. NET CHANGE IN OPERATING ACCOUNTS 16. COMMITMENTS AND CONTINGENCIES Construction Contracts 88 camden transforming As of December 31, 2004, we were obligated for approximately $21.3 million of additional expenditures on our two  wholly-owned projects currently under development (a substantial amount of which we expect to be funded with our  unsecured line of credit). The effect of changes in the operating accounts on cash flows from operating activities is as follows: Estimates of fair value of our notes payable are based upon interest rates available for the issuance of debt with  similar terms and remaining maturities. As of December 31, 2004, the outstanding balance of fixed rate notes payable  of $1,429.6 million had a fair value of $1,502.8 million. As of December 31, 2003, the outstanding balance of fixed  rate notes payable of $1,385.1 million had a fair value of $1,492.9 million. The floating rate notes payable balance at  December 31, 2004 and 2003 approximated fair value. As of December 31, 2004 and 2003, management estimated that the carrying value of cash and cash equivalents,  accounts receivable, notes receivable, investments and liabilities under deferred compensation plans, accounts  payable, accrued expenses and other liabilities and distributions payable were at amounts that reasonably  approximated their fair value. SFAS No. 107, “Disclosures about Fair Value of Financial Instruments”, requires disclosure about fair value for all  financial instruments, whether or not recognized, for financial statement purposes. Disclosure about fair value  of financial instruments is based on pertinent information available to management as of December 31, 2004 and  2003. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly,  the estimates presented herein are not necessarily indicative of the amounts we could obtain on disposition of the  financial instruments. The use of different market assumptions and/or estimation methodologies may have a material  effect on the estimated fair value amounts. were funded with unsecured full recourse personal loans made to each of the executives by a third-party lender. The  loans mature beginning in the fourth quarter of 2004, bear interest at market rates and require interest to be paid  quarterly. To facilitate the employee share purchase transactions, we entered into a guaranty agreement with the  lender for payment of all indebtedness, fees and liabilities of the officers to the lender. Simultaneously, we entered  into a reimbursement agreement to reimburse us, should any amounts ever be paid by us pursuant to the terms of  the guaranty agreement. The reimbursement agreements require the executives to pay interest from the date any  amounts are paid by us, until repayment by the officer. As of December 31, 2004, $4.3 million of these unsecured full  recourse loans were outstanding. The remaining outstanding loans are scheduled to mature during the first quarter of  2005. We have not had to perform under the guaranty agreement.  year ended december 31, in thousands  2004 2003 2002 Decrease (increase) in assets: Accounts receivable - affiliates $ 456 $  (33)  $  64 Other assets, net (8,286) 1,280 (6,624) Increase (decrease) in liabilities: Accounts payable 5,653 (10,031)  21,638 Accrued real estate taxes 130 906  (1,695) Accrued expenses and other liabilities 10,091 13,442  14,560 Change in operating accounts $ 8,044 $ 5,564 $ 27,943