SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE D – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2023, was as follows: Balance at July 1, 2022 Transfers Additions Disposals Balance at June 30, 2023 Governmental activities Capital assets not being depreciated Land $ 714,536 $ - $ - $ - $ 714,536 Capital assets that are depreciated Buildings and improvements 137,469,645 - 4,519,452 - 141,989,097 Furniture and equipment 21,749,930 - 1,744,221 (1,257,730) 22,236,421 Right-to-use assets being amortized Buildings and improvements 550,867 - - - 550,867 Totals at historical cost 160,484,978 - 6,263,673 (1,257,730) 165,490,921 Less: accumulated depreciation Buildings and improvements (41,222,299) - (3,592,839) - (44,815,138) Furniture and equipment (17,732,716) - (1,095,081) 1,230,483 (17,597,314) Less: accumulated amortization Buildings and improvements (41,315) - (27,543) - (68,858) Total accumulated depreciation and amortization (58,996,330) - (4,715,463) 1,230,483 (62,481,310) $ 101,488,648 $ - $ 1,548,210 $ (27,247) $ 103,009,611 Business-type activities Capital assets that are depreciated Furniture and equipment $ 165,939 $ - $ 24,274 $ - $ 190,213 Less accumulated depreciation Furniture and equipment (101,140) - (12,110) - (113,250) $ 64,799 $ - $ 12,164 $ - $ 76,963 Depreciation and amortization expense for governmental activities is reported in the Statement of Activities and was allocated to operation of plant. - 41 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE E – LONG-TERM LIABILITIES The following is a summary of the changes in long-term liabilities for the year ended June 30, 2023: Balance as of July 1, 2022 Additions Reductions Balance, as of June 30, 2023 Amount due within one year General obligation bonds $ 49,082,000 $ - $ 4,920,000 $ 44,162,000 $ 9,410,000 Deferred amounts for issuance premium 2,618,157 - 591,830 2,026,327 - Total bonds payable, net 51,700,157 - 5,511,830 46,188,327 9,410,000 Interest 539,858 477,807 539,858 477,807 477,807 Lease payable 3,775,000 - 500,000 3,275,000 515,000 Compensated absences 383,817 - 42,927 340,890 - $ 56,398,832 $ 477,807 $ 6,594,615 $ 50,282,024 $ 10,402,807 Principal and interest on general obligation bonds are paid through the Debt Service Fund. Principal and interest on leases are paid through the Capital Projects Fund. Compensated absences are paid through the General Fund and Special Revenue Fund. Bonds Payable General obligation bonds outstanding at June 30, 2023 were as follows: Date issued Maturity date Rate of interest Original issue amount Balance at June 30, 2023 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 09/08/10 03/01/27 4.70% 3,987,000 3,987,000 12/27/17 03/01/29 4.00%-5.00% 23,465,000 13,800,000 12/05/19 03/01/29 2.00%-3.00% 31,075,000 17,190,000 $ 44,162,000 - 42 -

Compensated absences are paid through the General Fund and Special Revenue Fund. Bonds Payable General obligation bonds outstanding at June 30, 2023 were as follows: Date issued Maturity date Rate of interest Original issue amount Balance at June 30, 2023 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 09/08/10 03/01/27 4.70% 3,987,000 3,987,000 12/27/17 03/01/29 4.00%-5.00% 23,465,000 13,800,000 12/05/19 03/01/29 2.00%-3.00% 31,075,000 17,190,000 $ 44,162,000 - 42 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE E – LONG-TERM LIABILITIES - CONTINUED The annual requirements to amortize the general obligation bonds as of June 30, 2023, including interest payments, are as follows: Year ending June 30, Principal Interest Total 2024 $ 9,410,000 $ 1,409,924 $ 10,819,924 2025 6,110,000 1,277,339 7,387,339 2026 6,565,000 1,050,939 7,615,939 2027 6,947,000 803,389 7,750,389 2028 7,345,000 472,900 7,817,900 2029 7,785,000 221,400 8,006,400 $ 44,162,000 $ 5,235,891 $ 49,397,891 Legal Debt Margin Article VI, Section 26(b) of the Constitution of Missouri limits the amount of General Obligation Bonds which can be authorized and outstanding by a school district to 15% of the assessed valuation of taxable tangible property within the District. The legal debt margin of the District at June 30, 2023 was: Constitutional debt limit $ 206,975,267 General obligation bonds payable (44,162,000) Amount available in Debt Service Fund 8,313,030 Legal debt margin $ 171,126,297 - 43 -

SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE E – LONG-TERM LIABILITIES - CONTINUED The annual requirements to amortize the general obligation bonds as of June 30, 2023, including interest payments, are as follows: Year ending June 30, Principal Interest Total 2024 $ 9,410,000 $ 1,409,924 $ 10,819,924 2025 6,110,000 1,277,339 7,387,339 2026 6,565,000 1,050,939 7,615,939 2027 6,947,000 803,389 7,750,389 2028 7,345,000 472,900 7,817,900 2029 7,785,000 221,400 8,006,400 $ 44,162,000 $ 5,235,891 $ 49,397,891 Legal Debt Margin Article VI, Section 26(b) of the Constitution of Missouri limits the amount of General Obligation Bonds which can be authorized and outstanding by a school district to 15% of the assessed valuation of taxable tangible property within the District. The legal debt margin of the District at June 30, 2023 was: Constitutional debt limit $ 206,975,267 General obligation bonds payable (44,162,000) Amount available in Debt Service Fund 8,313,030 Legal debt margin $ 171,126,297 - 43 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE E – LONG-TERM LIABILITIES - CONTINUED Lease On June 1, 2019, the District entered into a $5,065,000 lease agreement. The proceeds of the lease were used as follows:  $550,867 of capital improvements to Meramec Elementary with $68,858 of related accumulated amortization  $4,514,133 of capital contributions to the joint venture, Clayton Recreation, Sports and Wellness Commission. See Note K for more information on the joint venture. Since this represents a capital contribution, there is not an asset or related accumulated depreciation. The District is only obligated to pay such payments under the lease as may lawfully be made from funds budgeted and appropriated for that purpose. Should the District fail to budget, appropriate or otherwise make available funds sufficient to pay the payments, the lease would be deemed terminated at the end of the current term and the collateral would transfer to the possession of the lessor. Meramec Elementary School is pledged as collateral. The District has the option to purchase the lessor's interest in the project through prepayment. If the prepayment is paid with internally generated funds (i.e. not in connection with refinancing or grant), there would be no prepayment premium. Otherwise, the prepayment premium would be 3% of the remaining principal portion if on or before the first anniversary of the commencement date; 2% of the remaining principal portion if after the first anniversary but on or before the second anniversary of the commencement date; 1% of the remaining principal portion if after the second anniversary of the commencement date. - 44 -

If the prepayment is paid with internally generated funds (i.e. not in connection with refinancing or grant), there would be no prepayment premium. Otherwise, the prepayment premium would be 3% of the remaining principal portion if on or before the first anniversary of the commencement date; 2% of the remaining principal portion if after the first anniversary but on or before the second anniversary of the commencement date; 1% of the remaining principal portion if after the second anniversary of the commencement date. - 44 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE E – LONG-TERM LIABILITIES - CONTINUED Lease - Continued The following is a schedule of future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of June 30, 2023: Year ended June 30, 2024 $ 594,244 2025 591,600 2026 593,932 2027 590,901 2028 592,705 2029 593,996 Total minimum lease payments 3,557,378 Less amount representing interest (282,378) Present value of minimum lease payments $ 3,275,000 NOTE F – TAX ABATEMENTS The District is subject to tax abatement agreements granted by St. Louis County, the City of Clayton, and the City of Richmond Heights. Abatements under Chapter 100 and Chapter 353 of RSMo exist within the District. During the term of the agreements, a certain percentage of the property tax amount for the assessed value of the eligible property is abated. For fiscal year 2023, the total amount of tax abated was approximately $2.0 million in real estate and personal property tax. NOTE G – RETIREMENT PLANS The District contributes to the Public School Retirement System of Missouri and the Public Education Retirement System of Missouri (PSRS and PEERS respectively, also referred to as the Systems), a cost-sharing multiple-employer defined benefit pension plan. - 45 -

For fiscal year 2023, the total amount of tax abated was approximately $2.0 million in real estate and personal property tax. NOTE G – RETIREMENT PLANS The District contributes to the Public School Retirement System of Missouri and the Public Education Retirement System of Missouri (PSRS and PEERS respectively, also referred to as the Systems), a cost-sharing multiple-employer defined benefit pension plan. - 45 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 NOTE G – RETIREMENT PLANS - CONTINUED Plan Description PSRS is a mandatory cost-sharing multiple-employer retirement system for all full-time certificated employees and certain part-time certificated employees of all public school districts in Missouri (except the school districts of St. Louis and Kansas City) and all public community colleges. PSRS also includes certificated employees of the Systems, Missouri State Teachers' Association, Missouri State High School Activities Association, and certain employees of the State of Missouri who elected to remain covered by PSRS under legislation enacted in 1986, 1987 and 1989. The majority of PSRS members are exempt from Social Security contributions. In some instances, positions may be determined not to be exempt from Social Security contributions. Any PSRS member who is required to contribute to Social Security comes under the requirements of Section 169.070 (9) RSMo, known as the "two-third’s statute." PSRS members required to contribute to Social Security are required to contribute two-thirds of the approved PSRS contribution rate and their employer is required to match the contribution. The members' benefits are further calculated at two-thirds the normal benefit amount. PEERS is a mandatory cost-sharing multiple employer retirement system for all non-certificated public school district employees (except the school districts of St. Louis and Kansas City), employees of the Missouri Association of School Administrators, and community college employees (except the Community College of St. Louis). Employees of covered districts who work 20 or more hours per week on a regular basis and who are not contributing members of PSRS must contribute to PEERS. Employees of the Systems who do not hold Missouri educator certificates also contribute to PEERS. PEERS was established as a trust fund by an Act of the Missouri General Assembly effective October 13, 1965. Statutes governing the System are found in Sections 169.600 - 169.715 and Sections 169.560-169.595 RSMo. The statutes place responsibility for the operation of PEERS on the Board of Trustees of PSRS. - 46 -