The lasting effects of COVID-19 on the District revenues and expenditures remain undetermined. The District will continue to work to control costs and align resources with priorities while also looking at other strategies to maintain financial balance with minimal impact on students and classrooms. 2 Operating revenues will exceed operating expenses, which will increase the operating fund balance by $2.5 million. The 2021-2022 year-end operating fund balances inclusive of business-type activities are projected at $31.8 million or 53 percent. However, $3.3 million has been formally committed by the Board for future capital expenditures. This leaves a net operating fund balance of $27.7 million or 47 percent of budgeted operating expenditures which exceeds the Board’s fund balance goal of 18 percent. As part of the normal budgeting process, long-range projections are developed and continually updated. This process allows the District to determine how much of available resources can be used for ongoing projects, such as new programs or initiatives, versus one-time projects, such as facility repairs. Current long-range projections include new revenue from five developments where construction plans have been approved.  Resident Inn by Marriot – 8125 Forsyth Boulevard, Clayton  Clarendale of Clayton – 7651 & 7601 Clayton Road, Clayton  Forsyth Point –8049 Forsyth Boulevard  Bank of America – 8100 Forsyth Boulevard, Clayton  The Pearl Condominiums – 43-55 Topton Way, Clayton There are several other potential new developments that are currently in the conceptual phase and have either not been submitted to the City for review or are waiting on approval. Estimated revenue from these developments will be included in projections when approved. This conservative and prudent approach to planning by Boards of Education has been a historical trademark of the District. Long-range financial planning will continue to be relied upon with administration prepared to react to unanticipated changes to planned revenue and expenses. Preparation of the 2021-2022 budget began in December 2020. It is our deep commitment to all students’ education that drives our thoughtful conversations and guides our budgetary decisions. Input was sought from staff, administrators and instructional leaders throughout the District. Specific information on developing the budget was discussed with the Board as study items on January 22 and May 19, 2021. The 2021-2022 School District of Clayton budget is recommended to the Board of Education for adoption. Respectfully submitted this day, June 2, 2021, Sean N. Doherty, Ed.D Mary Jo Gruber, CPA, CGMA, SFO Superintendent Chief Financial Officer 3