TABLE OF CONTENTS BUDGET MESSAGE 1 INTRODUCTORY SECTION 4 District Entity 5 Governance 5 Board of Education 5 The Role of the Board 5 Decision Making 5 Executive Administration 6 District Organizational Chart 6 District Mission and Goals 7 Mission, Vision and Core Values 7 Strategic Planning 8 Our Schools 10 Enrollment 11 Resident 13 Non-Resident 14 Budgets and Budgetary Accounting 15 Budget Management 15 Budget Cycle 15 Budget Development Process 16 Summary of Significant Account Policies 18 Fund Accounting 18 Revenue 19 Sources of Revenue 19 Estimating Revenue 23 Establishing a Tax Rate 24 Total Revenue by Fund 25 Operating Revenue by Object 26 Expenditures 27 Expenditures by Function 27 Expenditures by Object 27 Total Expenditures by Fund 28 Operating Expenditures by Object 29 Staffing 30 Salaries and Benefits 30 School Building & Dept Budgets 31 Capital Expenditures 31 Clayton Recreation Sports & Wellness 32 Family Center 33 Parents as Teachers 34 Early Childhood Special Education 35 Summer Programs 35 Debt Service 35 General Obligation Bonds Outstanding 35 Fund Balance 36 Reporting 39 FINANCIAL SECTION 40 Actual Revenues, Expenditures & Balances 41 Estimated Revenues, Expenditures & Balances 43 Budgeted Revenues Expenditures & Balances 45 Revenue Budget & Four-Year Comparison 47 Estimated Other Revenues by Fund 50 Revised Estimated Prior Year Other Revenues 53 Total Expenditures Function/Fund 56 Location/Fund 59 Function/Object 61 Location/Object 65 Operating Expenditures Function/Fund 67 Location/Fund 70 Function/Object 72 Location/Object 75 Capital Improvement Plan (CIP) Expenditures 77 Business-Type Activities 80 Prior-Year Total Expenditures 82 Three-Year Comparison 83 Function/Fund 85 Function/Object 90 Prior-Year Operating Expenditures 97 Three-Year Comparison 98 Function/Fund 100 Function/Object 105 GLOSSARY 112 Due to the complete reconfiguration of the Missouri Public School Accounting System mandated by the Missouri Department of Elementary and Secondary Education (DESE) and implemented by the District as of July 1, 2018, it is extremely difficult to create an account-by-account analysis by function and object of the prior year expense accounts for the purposes of this document. Accounts have been separated by DESE into multiple accounts, combined with portions of other accounts, new accounts have been added and some accounts have been deleted. A single report comparing prior year’s expenses will be reinstated when an account-to-account comparison is available.

Accounts have been separated by DESE into multiple accounts, combined with portions of other accounts, new accounts have been added and some accounts have been deleted. A single report comparing prior year’s expenses will be reinstated when an account-to-account comparison is available. BUDGET MESSAGE As a community, the students, staff, parents and patrons of the School District of Clayton are united in our commitment to student learning. Our mission, vision and core values embody why we are here, what we want our students to become, and the principles that guide our work. The District’s mission to inspire each student to love learning and embrace challenge within a rich and rigorous academic culture, and the vision to develop leaders who shape the world through independence, creativity and critical thinking set the standard for the education we provide. During the 2018-2019 school year, the District began developing a new strategic plan with the end in mind: our students. We developed a Profile of a Clayton Graduate that includes competencies we want for every Clayton graduate. During the 2019-2020 school year, we engaged the community to establish the direction of the District’s new strategic plan, using the Profile as the foundation of our work. We envision a plan that will influence our approach to learning and challenge the mental models of what our schools look like for our students. We have established goal statements to guide our work:  We will ensure each learner feels safe and valued.  We will commit to the educational growth of our learners through an equitable, personalized and individualized learning experience.  We will be dedicated to the personal growth of our learners in their social, emotional and physical well-being. While our District’s new strategic plan will serve as a guide for where we are going over the next three to five years, we will also be purposeful about being reflective and make adjustments along the way. We are taking an evergreen approach to our strategic plan. This means we will evaluate it more often and make changes as needed based on evidence we gather. We will have action steps that are aspirational, attainable, and aligned to our resources. On April 2, 2019, the Board of Education (Board) asked the community to vote on Proposition E, an operating levy increase of 56 cents per $100 of assessed valuation and an eight-cent waiver of Proposition C sales tax revenues. The voters approved the ballot measure with 64.2 percent of the votes. The net effect of both measures provided the District with an additional 64 cents of operating revenue, or approximately $7.3 million. The additional revenue will maintain and strengthen the District’s academic excellence and fiscal stability by eliminating the gap between revenues and expenses, addressing facility and maintenance needs and rebuilding reserves. The community's support of Proposition E will have a lasting impact on our schools and our students. Proposition E was placed on the ballot because the District was prudently spending down operating reserves over several years. During this time, the District made reductions in expenditures with the goal of continuing to align District resources with our priorities but also protect what matters most: our instructional core. While we reduced our expenditures and made permanent changes to staffing and programs, we did it in a way that protected our instructional core and prioritized organizational and operational impacts in order to minimize the direct impact on our students and their learning. Due to the successful passing of Proposition E, the District projects approximately a $2.8 million operating surplus and growing the fund balance of approximately 40 percent, which exceeds the 18 percent fund balance goal. 1

While we reduced our expenditures and made permanent changes to staffing and programs, we did it in a way that protected our instructional core and prioritized organizational and operational impacts in order to minimize the direct impact on our students and their learning. Due to the successful passing of Proposition E, the District projects approximately a $2.8 million operating surplus and growing the fund balance of approximately 40 percent, which exceeds the 18 percent fund balance goal. 1 The District’s instructional and departmental operating budgets were prepared through a Zero-Based Budgeting (ZBB) approach. This approach helps ensure that the budget is developed to align with priorities for instructional practices and organizational needs. The ZBB approach is built on needs and priorities rather than on historical spending trends. The ZBB process is about creating accountability for what the District spends and transparency of the decisions for where the District spends. Proposed 2020-2021 total expenditures including normal debt service payments and business-type activities total $67.2 million. Projected total revenues, inclusive of business-type and debt service, of $69.5 million will result in a surplus $2.3 million and grow the overall fund balance to $33.3 million. Because many of the revenues and expenditures included in the total budget are restricted for specific purposes, the operating budget more clearly reflects the District’s expected results of operations. The operating revenue budget is projected to decrease by $2.7 million or 4.25 percent to a total of $60.0 million primarily due to fluctuations in protested and financial institution taxes. Protested assessed values continue to remain a challenge for all of St. Louis County taxing authorities. Numerous protested tax appeals crowd the State Tax Commissions dockets resulting in continuous fluctuations in assessed valuation data and tax payments that cause significant fluctuations in revenue trends. Further, other revenue categories such as non-resident tuition, tuition from other local education agencies (LEA’s), and VICC are projected to decrease due to an increase in resident enrollment resulting in less available space. Projected revenues are based upon the best information available at this time as well as historical trends. The operating expenditure budget is projected to increase by $1.5 million or 2.64 percent to a total of $57.3 million. The 2020-2021 school year is the second year of a two-year salary agreement. A 1.1 percent budgetary increase for certified teaching staff has been included in the current projections per the salary agreement. The average salary increase for a teacher is 2.41 percent due to staff turnover. Administrative salaries, classified salaries, part-time temporary employment and substitute budgets will be increased by 2 percent. In addition, the operating budget supports the maintenance of our facilities and grounds, recommended technology improvements, textbook, musical instrument and athletic uniform replacement, and curriculum implementation plans. Due to the successful passing of Proposition E, additional funding for facility and maintenance needs will be budgeted. Total proposed maintenance Capital Improvement Plan (CIP) expenditures for 2020-2021 will have an additional $200,000 in funding for a total allocation of $922,790. An additional $595,000 of funding from Proposition E will also be used to pay the annual financing payments for improvements at the Center of Clayton. In addition, funding for deferred capital requests will be discussed during the 2020-2021 school year. The proceeds from the sale of the Maryland building could be used to fund deferred capital requests. These funds are not part of operating funds and are not reflected in the operating budget. The Board has committed these funds for capital projects and must approve each expenditure from these funds. Capital requests in excess of this funding source could be financed over a period of 10 years. The District will continue to work to control costs and align resources with priorities while also looking at other strategies to maintain financial balance with minimal impact on students and classrooms. Operating revenues will exceed operating expenses, which will increase the operating fund balance by $2.8 million. The 2020-2021 year-end operating fund balances inclusive of business-type activities are projected at $27.5 million or 47 percent. However, $4.5 million has been formally committed by the Board for future capital expenditures. This 2

However, $4.5 million has been formally committed by the Board for future capital expenditures. This 2 leaves a net operating fund balance of $23.0 million or 40 percent of budgeted operating expenditures which exceeds the Board’s fund balance goal of 18 percent. As part of the normal budgeting process, long-range projections are developed and continually updated. This process allows the District to determine how much of available resources can be used for ongoing projects, such as new programs or initiatives, versus one-time projects, such as facility repairs. Current long-range projections include new revenue from four developments where construction plans have been approved.  Centene II – Phase I – 7600, 7606, 7620 Forsyth Boulevard; 14 South Hanley Road, Clayton – 40 percent tax abated property  Centene University/Early Childhood Development Center – 7501 Maryland Avenue, Clayton  Clarendale of Clayton – 7651 & 7601 Clayton Road, Clayton  Forsyth Point – 8001, 8015, 8019, 8023, 8025, 802, and 8049 Forsyth Boulevard and 15 North Meramec, Clayton There are several other potential new developments that are currently in the conceptual phase and have either not been submitted to the City for review or are waiting on approval. Estimated revenue from these developments will be included in projections when approved. This conservative and prudent approach to planning by Boards of Education has been a historical trademark of the District. Long-range financial planning will continue to be relied upon with administration prepared to react to unanticipated changes to planned revenue and expenses. Preparation of the 2020-2021 budget began in December 2019. It is our deep commitment to all students’ education that drives our thoughtful conversations and guides our budgetary decisions. Input was sought from staff, administrators and instructional leaders throughout the District. Specific information on developing the budget was discussed with the Board as study items on January 22 and May 13, 2020. The 2020-2021 School District of Clayton budget is recommended to the Board of Education for adoption. Respectfully submitted this day, June 24, 2020, Sean N. Doherty, Ed.D Mary Jo Gruber, CPA, CGMA, SFO Superintendent Chief Financial Officer 3

Respectfully submitted this day, June 24, 2020, Sean N. Doherty, Ed.D Mary Jo Gruber, CPA, CGMA, SFO Superintendent Chief Financial Officer 3 INTRODUCTORY SECTION 4