General Obligation Bond principal, interest and related charges.

to the acquisition or construction of assets with estimated useful life greater than 12 months. This fund also accounts for lease/purchase debt transactions. For analytical and/or discussion purposes, the District generally refers to Funds 1 & 2 as the “Operating Funds” as these funds generally account for the expenditures necessary to operate the current fiscal year. Fund 3 and Fund 4 generally account for transactions having a life expectancy greater than 12 months. Assumptions Preparation of the budget requires making various assumptions in order to forecast revenue and expenditures. As a result, final actual results will vary from projected results. Significant assumptions include:  Enrollment and Average Daily Attendance (ADA) which fluctuate throughout the school year.  Assessed Valuation (AV) which will be determined by St Louis County in August of the fiscal year.  Property Tax Rate which will be determined in September of the fiscal year.  Rate of property tax collections which varies year to year.  Employee benefit rates which renew in January of the fiscal year.  Anticipated rate of inflation and its impact on District costs.  Anticipated rates of return on District cash reserves.  Beginning-of-year fund balances. Enrollment & Average Daily Attendance Accurately forecasting these factors is important for determining staffing levels, supply purchases and facility needs. District enrollment and related average daily attendance peaked in 2018 and have been declining since. Enrollment has been declining in the St. Louis region for more than a decade due primarily to lower birth rates.

Enrollment has been declining in the St. Louis region for more than a decade due primarily to lower birth rates. District enrollment is at a 30-year low and projected to slowly decline further. This projected decline has minimal effect upon District revenue projections. Historical and projected enrollment data is provided later in this document. Assessed Valuation, Tax Rate & Collection Rates Accurately forecasting these factors is important for determining property tax collections, the primary source of District revenue. Reassessment scheduled for calendar 2023 will impact tax rates to be determined during September of the fiscal year. Tax rate setting is impacted by changes in assessed valuations as determined by the St. Louis County Assessor’s Office, as well as changes in the Consumer Price Index (CPI) as determined by the Missouri State Auditor’s Office. Preliminary 2023 AV data indicates property tax revenue for 2023-2024 will increase approximately 5%. Historical and projected AV data and tax rates are presented in greater detail later in this document. Revenue The revenue budget for 2023-2024 is forecast at $78.25M, an increase of $6.15M over prior year 2022- 2023 revenue projections. Significant revenue components of the 2023-2024 budget are:  Property tax growth due to reassessment & allowable CPI capture  Property tax growth due to new construction

Expenditures The expenditure budget for 2023-2024 is set at $75.39M, an increase of $1.17M over prior year 2022- 2023 spending estimates. Significant expenditure components of the 2023-2024 budget are:  Staff compensation is projected to increase due to revised pay schedules as the District seeks to retain staff and respond to the effects of inflation upon compensation.  The increased cost of services and supplies due to inflation has been accounted for within the budget. Account Code Structure & Definition of Budget Terms The District uses an account code structure that complies with the Missouri Account Manual. The account code structure has the following components: Fund Function Object Location Source Project Misc-1 Misc-2 XXX XXXX XXXX XXXX X XXXXX XXX XX A brief explanation of each segment of the account code structure is:  The District maintains four Funds: General, Teachers, Debt Service and Capital Improvement.  Function refers to the action or purpose of the expenditure, such as elementary instruction, or social work, or facility maintenance.  Object describes the type of expenditure, such as salaries, employee benefits, services, or supplies.  Location can refer to either a building or a department  Source of Funds is used to identify an expenditures paid from a specific revenue source.  Misc-1 and Misc-2 are used to add further coding for additional tracking purposes. Budget Number Data The next several pages provide several views of budget numbers

presented in summary form by Object.