All investment activities are conducted through the depository bank and the District’s financial advisor. As of June 30, 2020, the District’s investments were held by the investment’s counterparty. - 40 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE B – CASH AND INVESTMENTS - CONTINUED Summary The cash deposits and investments are summarized and presented in the financial statements as follows as of June 30, 2020: Carrying amount of deposits $ 17,219,800 Investments 18,673,713 $ 35,893,513 NOTE C – TAXES Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied by November 1 and payable by December 31. All unpaid taxes become delinquent January 1 of the following year. St. Louis County collects the property taxes and remits them to the District. The District also receives sales tax collected by the state and remitted based on eligible pupils. The District is required to reduce its property tax levy by one-half the amount of sales tax estimated to be received in the subsequent calendar year. The District's taxpayers have voted to permanently waive this property tax rollback. The assessed valuation of the tangible taxable property for the calendar year 2019 for purposes of local taxation was: Real estate: Residential $ 702,710,640 Commercial 518,529,180 Personal property 98,711,760 1,319,951,580 Less tax increment financing 10,057,820 $ 1,309,893,760 - 41 -

The District's taxpayers have voted to permanently waive this property tax rollback. The assessed valuation of the tangible taxable property for the calendar year 2019 for purposes of local taxation was: Real estate: Residential $ 702,710,640 Commercial 518,529,180 Personal property 98,711,760 1,319,951,580 Less tax increment financing 10,057,820 $ 1,309,893,760 - 41 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE C – TAXES - CONTINUED The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2019 for purposes of local taxation was as follows: Adjusted General Fund $ 1.2732 Special Revenue Fund 2.5030 Debt Service Fund 0.6230 Capital Projects Fund 0.1000 $ 4.4992 Due to the high increase in assessed valuation, the District voluntarily rolled back the tax rate 15 cents for the calendar year 2019. The receipts of current property taxes during the fiscal year ended June 30, 2020 aggregated approximately 99.3% of the 2019 assessment computed on the basis of the levy as shown above. - 42 -

SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE C – TAXES - CONTINUED The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2019 for purposes of local taxation was as follows: Adjusted General Fund $ 1.2732 Special Revenue Fund 2.5030 Debt Service Fund 0.6230 Capital Projects Fund 0.1000 $ 4.4992 Due to the high increase in assessed valuation, the District voluntarily rolled back the tax rate 15 cents for the calendar year 2019. The receipts of current property taxes during the fiscal year ended June 30, 2020 aggregated approximately 99.3% of the 2019 assessment computed on the basis of the levy as shown above. - 42 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE D – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2020, was as follows: Balance at July 1, 2019 Additions Disposals Balance at June 30, 2020 Governmental activities Capital assets not being depreciated Land $ 714,536 $ - $ - $ 714,536 Construction in progress - 2,362,709 - 2,362,709 Capital assets that are depreciated Buildings and improvements 129,798,504 675,408 - 130,473,912 Furniture and equipment 18,805,821 886,662 (27,291) 19,665,192 Totals at historical cost 149,318,861 3,924,779 (27,291) 153,216,349 Less: accumulated depreciation Buildings and improvements (31,263,249) (3,194,985) - (34,458,234) Furniture and equipment (15,467,532) (884,623) 25,023 (16,327,132) Total accumulated depreciation (46,730,781) (4,079,608) 25,023 (50,785,366) $ 102,588,080 $ (154,829) $ (2,268) $ 102,430,983 Business-type activities Capital assets that are depreciated Furniture and equipment $ 113,578 $ 52,361 $ - $ 165,939 Less accumulated depreciation Furniture and equipment (69,453) (8,719) - (78,172) $ 44,125 $ 43,642 $ - $ 87,767 Depreciation expense for governmental activities is reported in the Statement of Activities and was allocated to operation of plant. - 43 -

SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE D – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2020, was as follows: Balance at July 1, 2019 Additions Disposals Balance at June 30, 2020 Governmental activities Capital assets not being depreciated Land $ 714,536 $ - $ - $ 714,536 Construction in progress - 2,362,709 - 2,362,709 Capital assets that are depreciated Buildings and improvements 129,798,504 675,408 - 130,473,912 Furniture and equipment 18,805,821 886,662 (27,291) 19,665,192 Totals at historical cost 149,318,861 3,924,779 (27,291) 153,216,349 Less: accumulated depreciation Buildings and improvements (31,263,249) (3,194,985) - (34,458,234) Furniture and equipment (15,467,532) (884,623) 25,023 (16,327,132) Total accumulated depreciation (46,730,781) (4,079,608) 25,023 (50,785,366) $ 102,588,080 $ (154,829) $ (2,268) $ 102,430,983 Business-type activities Capital assets that are depreciated Furniture and equipment $ 113,578 $ 52,361 $ - $ 165,939 Less accumulated depreciation Furniture and equipment (69,453) (8,719) - (78,172) $ 44,125 $ 43,642 $ - $ 87,767 Depreciation expense for governmental activities is reported in the Statement of Activities and was allocated to operation of plant. - 43 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE E – LONG-TERM LIABILITIES The following is a summary of the changes in long-term liabilities for the year ended June 30, 2020: Balance as of July 1, 2019 Additions Reductions Balance, as of June 30, 2020 Amount due within one year General obligation bonds $ 69,052,000 $ 31,075,000 $ 37,410,000 $ 62,717,000 $ 6,915,000 Deferred amounts for issuance premium 2,890,824 1,741,862 565,774 4,066,912 - Total bonds payable, net 71,942,824 32,816,862 37,975,774 66,783,912 6,915,000 Interest 978,592 696,683 978,592 696,683 696,683 Capital lease 5,065,000 - 320,000 4,745,000 480,000 Compensated absences 372,056 188,976 - 561,032 - $ 78,358,472 $ 33,702,521 $ 39,274,366 $ 72,786,627 $ 8,091,683 Principal and interest on general obligation bonds are paid through the Debt Service Fund. Principal and interest on capital 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, 2020 were as follows: Date issued Maturity date Rate of interest Original issue amount Balance at June 30, 2020 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 11/03/09 03/01/21 4.60%-4.75% 10,720,000 1,675,000 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 16,795,000 12/05/19 03/01/29 2.00%-3.00% 31,075,000 31,075,000 $ 62,717,000 - 44 -

Compensated absences are paid through the General Fund and Special Revenue Fund. Bonds Payable General obligation bonds outstanding at June 30, 2020 were as follows: Date issued Maturity date Rate of interest Original issue amount Balance at June 30, 2020 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 11/03/09 03/01/21 4.60%-4.75% 10,720,000 1,675,000 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 16,795,000 12/05/19 03/01/29 2.00%-3.00% 31,075,000 31,075,000 $ 62,717,000 - 44 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2020 NOTE E – LONG-TERM LIABILITIES - CONTINUED On December 5, 2019, the District issued general obligation refunding bonds in the amount of $31,075,000. The proceeds of the bond issue were used to refund the outstanding principal and interest of the District's Series 2010B and 2010C general obligation bonds on March 1, 2020 (the crossover date). The refunding resulted in an economic gain of $2,329,590. The annual requirements to amortize the general obligation bonds as of June 30, 2020, including interest payments, are as follows: Year ending June 30, Principal Interest Total 2021 $ 6,915,000 $ 2,055,786 $ 8,970,786 2022 6,720,000 1,819,024 8,539,024 2023 4,920,000 1,593,023 6,513,023 2024 9,410,000 1,409,924 10,819,924 2025 6,110,000 1,277,339 7,387,339 2026-2030 28,642,000 2,548,628 31,190,628 $ 62,717,000 $ 10,703,724 $ 73,420,724 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, 2020 was: Constitutional debt limit $ 196,484,064 General obligation bonds payable (62,717,000) Amount available in Debt Service Fund 6,357,143 Legal debt margin $ 140,124,207 - 45 -