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

INTRODUCTORY SECTION 4 DISTRICT ENTITY The District, established under the Statutes of the State of Missouri, is governed by an elected seven-member board as described in RSMo Chapter 162. The Board of Education (Board) is the basic level of government that has financial accountability and control over all activities related to public school education in the District. The District, just west of the City of St. Louis, covers approximately 3.25 square miles and is located in the City of Clayton and includes a portion of the City of Richmond Heights. Combining a bustling downtown with quiet, secure residential neighborhoods, Clayton is the hub of the St. Louis area and the seat of St. Louis County. With a population of around 18,700 residents, it is also home to Forbes and Fortune 500 company headquarters. The District provides education for a stable enrollment of approximately 2,600 students in kindergarten (K) through 12th grade. The District’s facilities include an early childhood center, three elementary school (K-5), one middle school (6-8), and one high school (9-12). In addition to these school buildings, the District owns and maintains a maintenance facility and administrative center. GOVERNANCE Board of Education Mr. Joe Miller President Ms. Stacy Siwak Director Ms. Amy Rubin Vice President Ms. Kim Hurst Director Mr. Gary Pierson Secretary Mr. David Gulick Director Mr. Jason Wilson Treasurer The School District of Clayton Board of Education has seven members; two elected annually for three-year terms, and three elected every third year for three-year terms. An annual school board election is held in April each year. School board members are volunteers that receive no compensation for serving on the Board. The Role of the Board The Board of Education is elected to represent the School District of Clayton community in the governance of its public schools. The Board’s chief responsibility is to evaluate and hire the superintendent of schools. Additionally, the Board adopts policies and direct procedures for the governance of the District, with responsibility for implementing Board policy and day-to- day operations of the District delegated to the superintendent. The Board is also responsible for other fiduciary responsibilities as outlined in Board Policy DA including adopting an annual budget to enable the District to carry out its educational programs. All Board actions are governed by state and federal laws and Missouri Department of Elementary and Secondary Education (DESE) guidelines. Decision Making A minimum of four Board members must be present to conduct official Board business. Prior to each meeting, Board members receive relevant background information on each agenda item. They may contact the administration to clarify any item. The Board votes on each action item after Board discussion. 5

They may contact the administration to clarify any item. The Board votes on each action item after Board discussion. 5 The superintendent is the chief executive officer of the District and is employed by the Board. The superintendent and, when appropriate, other members of the executive administrative team, meet with the Board to make recommendations and answer questions. Executive Administration Sean Doherty, Ed.D. Superintendent Tony Arnold, Ed.D. Assistant Superintendent of Human Resources Milena Garganigo, Ed.D. Assistant Superintendent of Teaching and Learning Robyn Wiens, Ed.D. Assistant Superintendent of Student Services Mary Jo Gruber, CPA, CGMA, SFO Chief Financial Officer Jeff Puls, CETL Chief Technology Officer Chris Tennill, APR Chief Communications Officer DISTRICT ORGANIZATIONAL CHART 6