2021-2022 Budget June 2, 2021

2021-2022 Budget June 2, 2021 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 11 Enrollment 12 Resident 13 Non-Resident 14 Budgets and Budgetary Accounting 16 Budget Management 16 Budget Cycle 16 Budget Development Process 17 Summary of Significant Account Policies 19 Fund Accounting 19 Revenue 20 Sources of Revenue 21 Estimating Revenue 25 Establishing a Tax Rate 26 Total Revenue by Fund 27 Operating Revenue by Object 28 Expenditures 29 Expenditures by Function 29 Expenditures by Object 29 Total Expenditures by Fund 30 Operating Expenditures by Object 31 Staffing 32 Salaries and Benefits 32 School Building & Dept Budgets 33 Capital Expenditures 33 Clayton Recreation Sports & Wellness 34 Family Center 35 Parents as Teachers 36 Early Childhood Special Education 37 Summer Programs 37 COVID-19 Impact 37 Debt Service 38 General Obligation Bonds Outstanding 39 Fund Balance 40 Reporting 41 FINANCIAL SECTION 42 Actual Revenues, Expenditures & Balances 43 Estimated Revenues, Expenditures & Balances 45 Budgeted Revenues Expenditures & Balances 47 Revenue Budget & Four-Year Comparison 49 Estimated Other Revenues by Fund 52 Revised Estimated Prior Year Other Revenues 55 Total Expenditures Function/Fund 58 Location/Fund 61 Function/Object 63 Location/Object 67 Operating Expenditures Function/Fund 69 Location/Fund 72 Function/Object 74 Location/Object 77 Capital Improvement Plan (CIP) Expenditures 79 Business-Type Activities 82 Prior-Year Total Expenditures 84 Four-Year Comparison by Fund 85 Four-Year Comparison by Function 86 Four-Year Comparison by Object 88 Four-Year Comparison by Location 89 Prior-Year Operating Expenditures 90 Four-Year Comparison by Fund 91 Four-Year Comparison by Function 92 Four-Year Comparison by Object 94 Four-Year Comparison by Location 95 GLOSSARY 96

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 11 Enrollment 12 Resident 13 Non-Resident 14 Budgets and Budgetary Accounting 16 Budget Management 16 Budget Cycle 16 Budget Development Process 17 Summary of Significant Account Policies 19 Fund Accounting 19 Revenue 20 Sources of Revenue 21 Estimating Revenue 25 Establishing a Tax Rate 26 Total Revenue by Fund 27 Operating Revenue by Object 28 Expenditures 29 Expenditures by Function 29 Expenditures by Object 29 Total Expenditures by Fund 30 Operating Expenditures by Object 31 Staffing 32 Salaries and Benefits 32 School Building & Dept Budgets 33 Capital Expenditures 33 Clayton Recreation Sports & Wellness 34 Family Center 35 Parents as Teachers 36 Early Childhood Special Education 37 Summer Programs 37 COVID-19 Impact 37 Debt Service 38 General Obligation Bonds Outstanding 39 Fund Balance 40 Reporting 41 FINANCIAL SECTION 42 Actual Revenues, Expenditures & Balances 43 Estimated Revenues, Expenditures & Balances 45 Budgeted Revenues Expenditures & Balances 47 Revenue Budget & Four-Year Comparison 49 Estimated Other Revenues by Fund 52 Revised Estimated Prior Year Other Revenues 55 Total Expenditures Function/Fund 58 Location/Fund 61 Function/Object 63 Location/Object 67 Operating Expenditures Function/Fund 69 Location/Fund 72 Function/Object 74 Location/Object 77 Capital Improvement Plan (CIP) Expenditures 79 Business-Type Activities 82 Prior-Year Total Expenditures 84 Four-Year Comparison by Fund 85 Four-Year Comparison by Function 86 Four-Year Comparison by Object 88 Four-Year Comparison by Location 89 Prior-Year Operating Expenditures 90 Four-Year Comparison by Fund 91 Four-Year Comparison by Function 92 Four-Year Comparison by Object 94 Four-Year Comparison by Location 95 GLOSSARY 96 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. In addition to the mission, vision and core values, the District also uses our Profile of the Clayton Graduate that describes the attributes we want for every Clayton graduate. We envision graduates who are self-actualized, intellectually curious, culturally competent, empathetic, creative and collaborative. We use this profile to influence our approach to learning and challenge the mental models of what our schools should look like for our students. The Board approved the District’s strategic plan on November 11, 2020. Varied stakeholders developed the strategic plan keeping the end in mind – the students, using the profile as the foundation of the work. The goals of the strategic plan are meant to be aspirational and bold:  We will ensure all learners, regardless of their identity, feel 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. Under each of these goals are objectives that are concrete and measurable. While our District’s 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. The strategic plan’s data dashboard, which is an interactive tool on the District website, allows all District stakeholders to monitor our progress and hold us accountable to making growth in our goals and objectives. The District optimizes and aligns resources to ensure we meet stated goals and objectives. To ensure we have both the fiscal and human capital needed, we will use an organizational planning model that causes us to annually review our alignment of strategic goals and finances. We build our annual budget based on an organizational structure focused on instruction, human resources, capital improvement, programs and financial sustainability. We use our growth data to determine if the way we are allocating resources is having the impact we expect. The District’s instructional and departmental operating budgets are 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. 1

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. 1 Proposed 2021-2022 total expenditures including normal debt service payments, business-type activities, and extraordinary items total $68.5 million. Projected total revenues, inclusive of business-type, debt service, and extraordinary items of $70.7 million will result in a surplus $2.2 million and grow the overall fund balance to $37.5 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 increase by $1.7 million or 2.94 percent to a total of $61.1 million primarily due to the increase in local taxes receiving a 1.4% adjustment for CPI. In addition, other local revenue increased due the significant reductions in student activities and Family Center revenue for the 2020-2021 school year and returning close to pre-pandemic levels for 2021-2022. Projected revenue is 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 2.60 percent to a total of $58.6 million. The 2019-2020 was the final year of a two-year salary agreement. Administration and teacher representatives began having salary discussions in February 2021. The Board approved a two-year salary schedule at their April 14, 2021 meeting. A .92 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 3.0 percent due to staff turnover. Administrative salaries, classified salaries, part-time temporary employment and substitute budgets will be increased by 3.0 percent. This represents an overall budgetary salary increase of 2.0 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. Total proposed maintenance Capital Improvement Plan (CIP) expenditures for 2021-2022 will have a total allocation of $940,250. An additional $592,930 will also be used to pay the annual financing payments for improvements at the Center of Clayton. While there are many unknowns in the educational world concerning the COVID-19 pandemic, the District has been responsive to the needs of families to ensure every student receives an equitable education regardless of the learning environment. The District budgeted approximately $1.0 million in federal COVID relief funds because of numerous fiscal recovery acts passed by Congress that provide a substantial infusion of resources to help address the costs of operating during a pandemic, the resulting economic fallout and lay the foundation for a strong and equitable recovery. The District utilized these funds to install a needlepoint bi-polar ionization system that is integrated into each building’s HVAC system to provide pathogen removal remediation. Further, a Contract Tracing Investigator position was added to assist in compliance with St. Louis County mandates related to the coronavirus pandemic. Personal protective equipment (PPE) including facemasks, face shields, hand sanitizer, touchless paper towel dispensers, spray bottles/microfiber towels, desk partitions/dividers, and signage were purchased to provide a safe environment. Technology enhancements were added to improve/assist with online learning. Finally, additional instructional support positions were added to assist in monitoring students’ progress. The 2021-2022 budget continues to be impacted by the effects of the COVID-19 closures that took place beginning in March of 2020. The economy saw many changes from business closings, rising unemployment, declines in the federal funds target rate, etc. The lasting effects of COVID-19 on the District revenues and expenditures remain undetermined. 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. 2