For the year ended June 30, 2021, the combined General and Special Revenue change in fund balances was approximately $3.6 million greater than the 2020-2021 final budget. Missouri law prohibits a district from overspending the expenditure budget per fund. - 15 -

SCHOOL DISTRICT OF CLAYTON MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED Year ended June 30, 2021 Capital Assets and Debt Administration Capital Assets At June 30, 2021, the District had capital assets with a net book value of $102.0 million, which includes $55.0 million in accumulated depreciation. Table 4 shows a breakdown of capital assets, net of accumulated depreciation, at year end. Table 4 Capital Assets - Net June 30, 2021 2020 Governmental activities Business- type activities Total Governmental activities Business- type activities Total Land $ 714,536 $ - $ 714,536 $ 714,536 $ - $ 714,536 Construction in progress - - - 2,362,709 - 2,362,709 Buildings and improvements 97,784,161 - 97,784,161 96,015,678 - 96,015,678 Furniture and equipment 3,448,299 75,754 3,524,053 3,338,060 87,767 3,425,827 Total $ 101,946,996 $ 75,754 $ 102,022,750 $ 102,430,983 $ 87,767 $ 102,518,750 The total additions for the year were $3.8 million which consisted of $2.7 of building and improvements and $1.0 in furniture and equipment purchases. In June 2019, the District entered into an approximately $5.1 million capital lease for the purpose of renovation and improvements to Meramec Elementary and to fund capital contributions to the joint venture Clayton Recreation, Sports and Wellness Commission which is undergoing a $10 million renovation project. The remaining lease proceeds were spent in the current year. Debt Administration At June 30, 2021, the District had $55.8 million in general obligation bonds outstanding. Missouri statute allows school districts to incur debt up to an amount equal to 15% of the most current assessed valuation. The District’s allowable debt level was approximately $147.0 million at June 30, 2021, far above the District’s current level of debt. The District’s Debt Service levy for 2020-2021 was $0.623 on each $100 of assessed valuation. The Debt Service Fund balance at June 30, 2021 was $5.4 million and equal to nearly 73.8% of the fiscal year 2022 annual debt service expense. The District’s bond rating is AAA with Standard and Poor’s. Other long-term liabilities of the District include compensated absences and capital leases for renovation and improvement projects. Additional information about debt is provided in Note E. - 16 -