All investment activities are conducted through the depository bank and the District's financial advisor. As of June 30, 2019, the District's investments were held by the investment's counterparty. - 40 - SCHOOL DISTRICT OF CLAYTON NOTES TO FINANCIAL STATEMENTS June 30, 2019 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, 2019: Cashon hand Carrying amount of deposits Investments NOTE C -TAXES $ 199 5,118,388 23,520,342 $ 28,638,929 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. The 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 assessed valuation of the tangible taxable property for the calendar year 2018 for purposes of local taxation was: Real estate: Residential Commercial Personal property Less tax increment financing - 41 - $ 590,409,240 459,084,570 96,561,950 1,146,055,760 9,815,380 $ 1,136,240,380

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 assessed valuation of the tangible taxable property for the calendar year 2018 for purposes of local taxation was: Real estate: Residential Commercial Personal property Less tax increment financing - 41 - $ 590,409,240 459,084,570 96,561,950 1,146,055,760 9,815,380 $ 1,136,240,380 SCHOOL DISTRICT OF CLAYTON NOTES TO FINANCIAL STATEMENTS June 30, 2019 NOTE C - TAXES - Continued The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2018 for purposes of local taxation was as follows: Unadjusted Adjusted General Fund $ 1.1469 $ 1.0555 Special Revenue Fund 2.0770 2.0770 Debt Service Fund 0.6230 0.6230 Capital Projects Fund 0.1100 0.1100 $ 3.9569 $ 3.8655 The receipts of current property taxes during the fiscal year ended June 30, 2019 aggregated approximately 96.8% of the 2018 assessment computed on the basis of the levy as shown above. - 42 -

SCHOOL DISTRICT OF CLAYTON NOTES TO FINANCIAL STATEMENTS June 30, 2019 NOTE C - TAXES - Continued The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2018 for purposes of local taxation was as follows: Unadjusted Adjusted General Fund $ 1.1469 $ 1.0555 Special Revenue Fund 2.0770 2.0770 Debt Service Fund 0.6230 0.6230 Capital Projects Fund 0.1100 0.1100 $ 3.9569 $ 3.8655 The receipts of current property taxes during the fiscal year ended June 30, 2019 aggregated approximately 96.8% of the 2018 assessment computed on the basis of the levy as shown above. - 42 - SCHOOL DISTRICT OF CLAYTON NOTES TO FINANCIAL STATEMENTS June 30, 2019 NOTED - CAPITAL ASSETS Capital asset activity for the year ended June 30, 2019, was as follows: Balance at June 30, 2018 Additions Governmental activities Capital assets not being depreciated Land $ 714,536 $ Capital assets that are depreciated Buildings and improvements 129,425,239 373,266 Furniture and equipment 19,072,378 989,221 Totals at historical cost 149,212,153 1,362,487 Less accumulated depreciation Buildings and improvements (28,447,375) (2,815,874) Furniture and equipment (15,795,248) (867,202) Total accumulated depreciation (44,242,623) (3,683,076) $ 104,969,530 $ (2,320,589) Business-type activities Capital assets that are depreciated Furniture and equipment $ 113,578 $ Less accumulated depreciation Furniture and equipment (61,413) (8,040) $ 52,165 $ (8,040) Balance at Disposals June 30, 2019 $ $ 714,536 129,798,505 (1,255,778) 18,805,821 (1,255,778) 149,318,862 (31,263,249) 1,194,917 (15,467,533) 1,194,917 (46,730,782) $ (60,861) $ l 02,588,080 $ $ 113,578 (69,453) $ $ 44,125 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 FINANCIAL STATEMENTS June 30, 2019 NOTED - CAPITAL ASSETS Capital asset activity for the year ended June 30, 2019, was as follows: Balance at June 30, 2018 Additions Governmental activities Capital assets not being depreciated Land $ 714,536 $ Capital assets that are depreciated Buildings and improvements 129,425,239 373,266 Furniture and equipment 19,072,378 989,221 Totals at historical cost 149,212,153 1,362,487 Less accumulated depreciation Buildings and improvements (28,447,375) (2,815,874) Furniture and equipment (15,795,248) (867,202) Total accumulated depreciation (44,242,623) (3,683,076) $ 104,969,530 $ (2,320,589) Business-type activities Capital assets that are depreciated Furniture and equipment $ 113,578 $ Less accumulated depreciation Furniture and equipment (61,413) (8,040) $ 52,165 $ (8,040) Balance at Disposals June 30, 2019 $ $ 714,536 129,798,505 (1,255,778) 18,805,821 (1,255,778) 149,318,862 (31,263,249) 1,194,917 (15,467,533) 1,194,917 (46,730,782) $ (60,861) $ l 02,588,080 $ $ 113,578 (69,453) $ $ 44,125 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 FINANCIAL STATEMENTS June 30, 2019 NOTE E - LONG-TERM LIABILITIES The following is a summary of the changes in long-term liabilities for the year ended June 30, 2019: Balance Balance Amount as of as of due within July 1, 2018 Additions Reductions June 30, 2019 one year General obligation bonds $ 92,802,000 $ $23,750,000 $ 69,052,000 $ 4,935,000 Deferred amounts for issuance premium 3,652,114 761,290 2,890,824 Total bonds payable, net 96,454,114 24,511,290 71,942,824 4,935,000 Interest 1,466,555 978,592 1,466,555 978,592 978,592 Capital lease 7,122 5,065,000 7,122 5,065,000 320,000 Compensated absences 337,177 34,879 372,056 $ 98,264,968 $ 6,078,471 $25,984,967 $ 78,358,472 $ 6,233,592 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 liquidated by the General Fund and Special Revenue Fund. Bonds payable General obligation bonds outstanding at June 30, 2019 were as follows: Original Balance Date Maturity Rate of lSSue at June 30, issued date interest amount 2019 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 11/03/09 03/01/21 0.80%-4.75% 10,720,000 3,195,000 09/08/10 03/01/27 4.70% 3,987,000 3,987,000 09/28/10 03/01/30 4.70%-5.00% 16,205,000 16,205,000 09/28/10 03/01/28 3.90%-4.70% 16,270,000 16,270,000 12/27/17 03/01/29 4.00% - 5.00% 23,465,000 20,210,000 $69,052,000 - 44 -

Compensated absences are liquidated by the General Fund and Special Revenue Fund. Bonds payable General obligation bonds outstanding at June 30, 2019 were as follows: Original Balance Date Maturity Rate of lSSue at June 30, issued date interest amount 2019 10/14/09 03/01/24 1.37% $ 9,185,000 $ 9,185,000 11/03/09 03/01/21 0.80%-4.75% 10,720,000 3,195,000 09/08/10 03/01/27 4.70% 3,987,000 3,987,000 09/28/10 03/01/30 4.70%-5.00% 16,205,000 16,205,000 09/28/10 03/01/28 3.90%-4.70% 16,270,000 16,270,000 12/27/17 03/01/29 4.00% - 5.00% 23,465,000 20,210,000 $69,052,000 - 44 - SCHOOL DISTRICT OF CLAYTON NOTES TO FINANCIAL STATEMENTS June 30, 2019 NOTE E - LONG-TERM LIABILITIES - Continued The annual requirements to amortize the general obligation bonds as of June 30, 2019, including interest payments, are as follows: Year ending June 30, Principal Interest Total 2020 $ 4,935,000 $ 2,887,649 $ 7,822,649 2021 5,250,000 2,646,979 7,896,979 2022 4,850,000 2,427,991 7,277,991 2023 2,845,000 2,221,791 5,066,791 2024 9,185,000 2,088,101 11,273,101 2025-29 33,777,000 6,831,189 40,608,190 2030 8,210,000 410,500 8,620,500 $ 69,052,000 $ 19,514,200 $ 88,566,200 Legal Debt Margin Article VI, Section 26 (b ), Constitution of Missouri, limits the outstanding amount of authorized General Obligation Bonds of a district to 15% of the assessed valuation of a District. The legal debt margin of the District at June 30, 2019 was: Constitutional debt limit General obligation bonds payable Amount available in Debt Service Fund Legal debt margin Capital Lease Payable $ 170,436,057 (69,052,000) 4,986,479 $ 106,370,536 On June 1, 2019, the District entered into a $5,065,000 capital lease purchase agreement. The proceeds of the lease will be used for $550,867 of capital improvements to Meramec Elementary and $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. - 45 -