2022-2023 Budget June 1, 2022

2022-2023 Budget June 1, 2022 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 20 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 35 Family Center 35 Parents as Teachers 36 Early Childhood Special Education 37 Summer Programs 37 Capital Projects 37 COVID-19 Impact 37 Debt Service 38 General Obligation Bonds Outstanding 38 Fund Balance 39 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 Business-Type Activities 79 Prior-Year Total Expenditures 81 Four-Year Comparison by Fund 82 Four-Year Comparison by Function 83 Four-Year Comparison by Object 85 Four-Year Comparison by Location 86 Prior-Year Operating Expenditures 87 Four-Year Comparison by Fund 88 Four-Year Comparison by Function 89 Four-Year Comparison by Object 91 Four-Year Comparison by Location 92 GLOSSARY 93

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 20 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 35 Family Center 35 Parents as Teachers 36 Early Childhood Special Education 37 Summer Programs 37 Capital Projects 37 COVID-19 Impact 37 Debt Service 38 General Obligation Bonds Outstanding 38 Fund Balance 39 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 Business-Type Activities 79 Prior-Year Total Expenditures 81 Four-Year Comparison by Fund 82 Four-Year Comparison by Function 83 Four-Year Comparison by Object 85 Four-Year Comparison by Location 86 Prior-Year Operating Expenditures 87 Four-Year Comparison by Fund 88 Four-Year Comparison by Function 89 Four-Year Comparison by Object 91 Four-Year Comparison by Location 92 GLOSSARY 93 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 has served as a guide for the past few years, we have been purposeful about being reflective and have make adjustments along the way. We are taking an evergreen approach to our strategic plan. This means we evaluate it more often and make changes as needed based on evidence we gather. We 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 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 2022-2023 total expenditures including normal debt service payments, business-type activities, and extraordinary items total $72.6 million. Projected total revenues, inclusive of business-type, debt service, and extraordinary items of $71.9 million will result in the District strategically spending down reserves $700,700 for an overall fund balance of $38.2 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 remain relatively flat for a total budget of $62.3 million. Real estate taxes are projected to remain flat. The decrease in federal revenue is due to the cessation of the Free & Reduced meal program for all students regardless of eligibility. Other income’s increase is primarily due to fee-based student activities with significant fluctuations in revenue closer to pre-pandemic levels. 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 $1.1 million or 1.88 percent to a total of $59.7 million. 2022-2023 is the final year of a two year certified salary agreement. For the 2022-2023 school year, a 1.8 percent increase for certified staff has been budgeted per the salary agreement. Staffing changes based on enrollment projections and student needs have been budgeted. The staffing changes resulted in a decrease in the salary budget primarily due to the reduction of a full-time teacher at Glenridge as well as Wydown due to shifts in enrollment. In addition, the operating budget will support maintenance of our facilities and grounds, recommended technology improvements, textbook, musical instrument and athletic uniform replacement, and curriculum implementation plans. The District continues to work to control costs and align resources with priorities while also looking at other strategies to achieve financial balance with minimal impact on students and classrooms. Extraordinary items are not included in the operating expenditure budget but will reduce fund balances. Extraordinary items include capital requests for copier replacement, technology improvements, and two capital projects approved by the Board of Education. Phase Two of safety and security improvements were approved by the Board on February 9,