ROCKWOOD R-VI SCHOOL DISTRICT FUND SUMMARY FY 2013/14

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1 ROCKWOOD R-VI SCHOOL DISTRICT FUND SUMMARY FY 2013/14 * 2013/14 Next year's budget * Summary of revenues and expenditures for all funds BUDGET CHILD NUTRITION STUDENT COMMUNITY OTHER BUILDING DEBT CAPITAL NEXT YEAR TEACHERS INCIDENTAL SERVICES ACTIVITIES EDUCATION ACTIVITIES FUND SERVICE PROJECTS DESCRIPTION 13/ X PROJECTED BEGINNING BALANCE $120,904,632 $29,487,787 $25,888,143 $2,942,352 $2,423,721 $2,838,266 $458,674 $2,278,517 $54,587,173 (0) PROJECTED REVENUES 255,006, ,124,460 62,276,262 8,748,850 5,454,000 9,170,581 42,750 4,151,226 24,038,543 - PROJECTED EXPENDITURES 288,721, ,797,598 71,073,034 8,519,833 5,454,000 9,516,684 42,750 6,019,593 52,298,092 - EST BAL BEFORE TRANSFERS/ RES. 87,189,720 34,814,649 17,091,371 3,171,369 2,423,721 2,492, , ,149 26,327,624 (0) FUND TRANSFERS 729,815 (500,000) (229,815) ENDING FUND BALANCE $87,189,720 $34,814,649 $17,821,186 $2,671,369 $2,423,721 $2,262,348 $458,674 $410,149 $26,327,624 (0) OPERATING SUMMARY* 13/14 PROJECTED BEGINNING BALANCE $57,654,447 PROJECTED RECEIPTS 207,551,947 PROJECTED EXPENDITURES 212,890,225 OPER. REV. OVER EXP (NET TRANSFER) (4,608,463) PROJECTED ENDING BALANCE 53,045,984 FUNDS RESERVED (22%) (46,835,849) UNRESERVED BALANCE $6,210,134 *Includes funds 110, 200, and 450. TAX LEVY TOTAL OF FUND FUND FUND FUND FUND FUND FUND FUND FUND YEAR ALL FUNDS X 13/14 Estimated / / / / / / / / /

2 BUDGET SUMMARY BY FUND FY 2013/14 REVENUE Title Actual Projected Budget Change 2009/ / / / /14 $ % REVENUE Incidental Fund $68,039,327 $60,333,168 $57,972,104 $64,046,536 $62,276,262 ($1,770,274) -2.8% Child Nutrition Services 8,369,540 8,440,950 8,875,053 8,838,482 8,748,850 (89,632) -1.0% Student Activities 4,960,540 4,942,204 4,965,670 6,060,000 5,454,000 (606,000) -10.0% Other Activities 244, ,269 50,141 51,686 42,750 (8,936) -17.3% Community Education 7,984,386 8,197,901 8,917,427 9,154,416 9,170,581 16, % GENERAL FUNDS 89,598,007 82,127,491 80,780,396 88,151,120 85,692,443 (2,458,677) -2.8% TEACHERS FUND 124,600, ,356, ,606, ,142, ,124,460 (18,276) 0.0% Building Fund 5,555,066 5,274,868 4,991,307 2,099,043 4,151,226 2,052, % Capital Projects (Bond Issue) 34,776,253 21,944, , #DIV/0! BUILDING FUNDS 40,331,319 27,219,539 5,220,109 2,099,043 4,151,226 2,052, % DEBT SERVICE FUND 52,682,718 25,737,948 36,072,495 24,838,775 24,038,543 (800,232) -3.2% TOTAL ALL FUNDS $307,212,909 $271,441,164 $268,679,818 $256,231,674 $255,006,671 ($1,225,002) -0.5% EXPENDITURES Title Actual Projected Budget Change 2009/ / / / /14 $ % EXPENDITURES Incidental Fund $68,796,630 $66,844,277 $63,379,125 $67,306,155 $71,073,034 $3,766, % Child Nutrition Services 7,099,161 7,099,911 7,398,034 8,637,635 8,519,833 (117,802) -1.4% Student Activities 4,888,609 4,668,481 4,642,247 6,060,000 5,454,000 (606,000) -10.0% Other Activities 98,805 34,737 30,165 57,656 42,750 (14,906) -25.9% Community Education 7,469,655 7,525,179 8,009,577 9,752,117 9,516,684 (235,433) -2.4% GENERAL FUNDS 88,352,860 86,172,584 83,459,148 91,813,563 94,606,301 2,792, % TEACHERS FUND 131,207, ,832, ,999, ,911, ,797,598 2,886, % Building Fund 6,402,447 5,017,089 3,479,243 3,958,296 6,019,593 2,061, % Capital Projects (Bond Issue) 36,018,002 34,858,505 22,648,265 5,766,501 - (5,766,501) -100% BUILDING FUNDS 42,420,450 39,875,594 26,127,507 9,724,797 6,019,593 (3,705,204) -38.1% DEBT SERVICE FUND 27,841,578 27,621,599 28,846,453 25,693,341 52,298,092 26,604, % TOTAL ALL FUNDS $289,822,445 $286,502,141 $271,432,719 $260,143,264 $288,721,584 $28,578, % The forecasted assessed valuation for FY14 is $3,102,698,674 and the forecasted tax levy for FY14 is $4.7331

3 TOTAL ENDING FUND BALANCE COMPARISON PROJECTED BUDGET % TOTAL % FY 2012/13 FY 2013/14 BUDGET CHANGE General $ 34,551,156 $ 25,637, % -25.8% Special Revenue (Teachers) 29,487,787 34,814, % 18.1% Debt Service 54,587,173 26,327, % -51.8% Building 2,278, , % -82.0% TOTAL FUNDS $ 120,904,632 $ 87,189, % -27.9% The fund structure includes the State required four major funds: General (including Incidental, Child Nutrition, Student Activities and Community Education Funds), Special Revenue (Teachers'), Debt Service, Capital (Building) and Bond Issues Funds. Total fund balances are budgeted to decrease approximately $33.7 million in FY14. Operating fund balances (Incidental, Special Revenue (Teacher's) and Building Funds) are budgeted to decrease $4.6 million from the FY13 level of $57.7 million after a transfer of $730K from non-operating funds. The majority of the decrease in total fund balance can be attributed to a $30.7 million debt service payment related to the 2006 bond issue. The Operating Fund balance required by the recommendation of the District's Funding and Finance Committee, to avoid TAN (Tax Anticipated Note) borrowing, is 18% of the budgeted fund expenditures for the operatings funds or $38.3 million. Additionally, the Board recommends maintaining financial stabilization funds that are equal to 4% of the budgeted fund expenditures for the operatings fund, or $8.6 million. Total reserve fund balance of 22% is $46.8 million. The district receives nearly 64.4% of its operating revenue from local tax sources based on assessed valuation of property and our approved tax levy. These ad valorem portion of these taxes are payable at December 31 each year. Consequently, the District receives the majority of its revenue dollars indecember or January and must either support the cash flow requirements with fund balances or by borrowing. This is the basis for the requirement of operating fund balances equal to 18% of budgeted expenditures. Total Balance By Fund Building 0.5% General 29.4% Debt Service 30.2% Special Revenue (Teachers) 39.9% General Special Revenue (Teachers) Debt Service Building

4 FUND HISTORY AND BUDGET SUMMARY OF OPERATING FUNDS (110, 200 & 450) Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $114,261,805 $119,944,751 $120,757,791 $122,403,567 $124,462,335 Proposition C Sales Tax 14,643,662 13,321,357 16,307,188 16,225,514 16,510,384 M&M Surcharge 10,110,339 9,923,671 9,349,622 9,134,973 9,138,463 Interest 27,923 11,405 7,172 51,253 38,872 VICC Cost of Educ. Reimb. 13,106,568 13,154,423 11,223,776 10,769,152 10,188,222 Other 2,941,982 3,538,613 3,619,035 3,394,596 3,475,439 Local Subtotal 155,092, ,894, ,264, ,979, ,813,715 County Other 2,634,711 2,231,952 3,619,832 3,029,903 2,891,570 County Subtotal 2,634,711 2,231,952 3,619,832 3,029,903 2,891,570 State Foundation Formula 14,977,735 15,628,578 21,286,176 22,466,362 20,150,478 Transportation 2,270,342 1,563,203 1,653,345 1,590,145 1,644,238 Educ/Screening Prog. (PAT) 471, , , , ,221 Early Childhood Special Ed 4,632,089 7,023,379 7,101,583 6,048,968 6,048,968 Classroom Trust Fund and Other 7,014,718 8,251,464 7,692,042 7,234,677 8,630,754 State Subtotal 29,366,103 32,757,199 38,046,058 37,669,373 36,803,659 Federal Early Childhood Special Ed 2,316, , , , ,992 Other 8,074,669 5,718,054 5,269,618 3,492,992 2,926,011 Federal Subtotal 10,390,714 6,595,976 6,157,323 4,164,984 3,598,003 Other Revenue Sources 711, , , , ,000 Total Revenue $198,195,257 $201,964,221 $209,570,230 $207,288,315 $207,551,947 Expenditures Salaries 130,931, ,847, ,880, ,166, ,326,182 Benefits 35,391,765 36,989,116 37,069,400 37,610,854 39,971,734 Purchased Services 18,750,323 16,816,820 15,912,315 17,516,463 18,430,634 Supplies 14,930,499 14,023,083 13,448,261 13,923,760 15,142,082 Lease Payment 923,235 1,813, , , ,367 Capital 5,479,212 3,203,758 2,822,100 3,853,841 5,915,226 Total Expenditures $206,406,634 $204,693,730 $199,857,980 $204,176,014 $212,890,225 Transfer 1,373,628 1,629,174 6,410, , ,815 Net Change (6,837,749) (1,100,334) 16,123,078 4,085,988 (4,608,463) Beginning Fund Balance 45,383,465 38,545,716 37,445,382 53,568,458 57,654,447 Ending Fund Balance $38,545,716 $37,445,382 $53,568,458 $57,654,447 $53,045,984

5 FUND HISTORY, BUDGET AND FORECAST SUMMARY GENERAL FUNDS 110, 120, 140, 160, & 170 Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $45,772,805 $46,881,095 $44,855,284 $51,073,429 $50,026,925 M&M Surcharge 4,050,151 3,878,705 3,473,130 3,809,457 3,675,587 Interest 15,243 4,352 5,696 40,515 30,728 VICC Cost of Educ. Reimb. 4,967, ,749 76, Other 20,976,780 21,354,249 22,388,655 23,804,296 22,920,500 Local Subtotal 75,782,440 72,551,150 70,799,296 78,727,697 76,653,740 County Assessed Utility Tax 954, ,590 1,237, , ,051 County Subtotal 954, ,590 1,237, , ,051 State Transportation 2,270,342 1,563,203 1,653,345 1,590,145 1,644,238 Ed/Screen Prg (PAT) 197, , , , ,151 Early Childhood Spec. Ed 2,381,184 2,856,338 2,584,701 2,201,590 2,201,590 Other 136,605 87, ,615 87, ,326 State Subtotal 4,985,190 4,624,938 4,469,361 4,122,096 4,190,305 Federal Early Childhood Spec. Ed 2,300, , , , ,992 Other 4,896,529 2,867,219 2,944,568 3,323,058 2,914,355 Contr. Ed. Srv.-Other LEA 679, , , , ,000 Federal Subtotal 7,876,349 4,181,815 4,274,494 4,420,050 4,011,347 Total Revenue $89,598,007 $82,127,491 $80,780,396 $88,151,120 $85,692,443 Expenditures Salaries $35,711,425 $35,935,946 $34,710,731 $37,995,943 $38,218,162 Benefits 10,013,175 10,712,744 10,102,240 10,789,452 11,672,069 Purchased Services 20,733,355 18,672,373 18,027,833 19,887,177 20,841,866 Supplies 21,894,906 20,851,521 20,550,069 22,438,841 23,131,588 Lease Payment , Capital , ,616 Total Expenditures $88,352,860 $86,172,584 $83,459,148 $91,813,563 $94,606,301

6 FY 2013/14 BUDGET Incidental Fund (110) Revenue Local - Property Taxes $50,026, Local - Merchants and Manufacturers Taxes (M&M) 3,675, Local - Interest on investments & Delinquent Taxes 30, Other Local 1,692, County - Assessed Utility Tax 837, State - Transportation 1,644, State - Early Childhood Special Ed 2,201, State - Educ. Screening (Parents as Teachers) 243, Federal 1,911,280 TOTAL REVENUE $62,276,262 Please see the General Revenue Explanation following the fund schedules for details concerning the General Fund revenue. Local property tax, merchants and manufacturing and interest from delinquent taxes are allocated among the Incidental, Special Revenue (Teachers), Debt Service and Building Funds according to the tax levy associated with each fund and therefore the distribution is consistent across all funds. The Incidental Fund is estimated to receive $ of the FY14 budgeted $ tax levy.

7 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Incidental Fund (110) Expenditure Explanation 6100 Salaries and Wages - Classified $28,719,158 These expenditures are for certificated and non-certificated employees and administrators serving in a non-teaching position. In May 2013, the Board of Education approved an administrator salary schedule that includes a minimum increase of 2% with the possibility of a further increase based on experience, education and other criteria established in the salary analysis. The Board of Education also approved salary increases of 4% for support staff. Both adjustments were made to increase the schedules toward the St. Louis County median Benefits 9,406,160 These expenditures are for all payroll related benefits including regulated payroll taxes, retirement costs, and health and life insurance on the above mentioned classified employees. In addition, these expenditures include workers compensation and unemployment insurance Purchased Services 17,805,634 These expenditures are costs related to the following services provided to the District by non-employees as well as other services purchased by the District: Instruction Services $213,770 Instructional Program Improvement Services 380,650 Pupil Services 37,500 Staff Services 112,700 Audit Services 34,000 Data Processing 260,000 Legal Services 165,000 Election Services 45,000 Outside Professional Services 1,024,963 Repairs and Maintenance 542,128 Rentals, Land and Buildings 95,942 Rental of Equipment 277,761 Water and Sewer 341,250 Trash Removal 100,000 Property Services 390,500 Contracted Transportation To/From School 7,862,109 Non Route Contract Transportation 665,999 Administrative Development 352,187 Mileage 214,082 Non-Employee Insurance 805,427 Liability Insurance 394,573 Communications 646,716 Printing and Binding 52,000 Dues, Membership 239,330 Other Purchased Services 2,551,647 TOTAL $17,805,634

8 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Incidental Fund (110) Expenditure Explanation: Continued 6400 Supplies $15,142,082 These expenditures are for the cost of materials that are expendable and are consumed during the year. The following are the general categories of supplies and expenditures: General Office and Instructional Materials $8,204,694 Textbooks 453,339 Library Books 613,652 Resource Materials 97,197 Electric 3,849,500 Gas-Natural 612,000 Gasoline and Diesel Fuel 1,226,700 Other 85,000 TOTAL $15,142,082 TOTAL EXPENDITURES $71,073,034

9 FUND HISTORY AND BUDGET INCIDENTAL FUND (110) Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $45,772,805 $46,881,095 $44,855,284 $51,073,429 $50,026,925 M&M Surcharge 4,050,151 3,878,705 3,473,130 3,809,457 3,675,587 Interest 15,243 4,352 5,696 40,515 30,728 VICC Cost of Educ. Reimb. 4,967, ,749 76, Other 1,353,793 1,565,761 1,734,702 1,671,894 1,692,112 Local Subtotal 56,159,453 52,762,662 50,145,344 56,595,295 55,425,352 County Assessed Utility Tax 954, ,590 1,237, , ,051 County Subtotal 954, ,590 1,237, , ,051 State Transportation 2,270,342 1,563,203 1,653,345 1,590,145 1,644,238 Educ/Screening Program (PAT) 197, , , , ,151 Early Childhood Special Ed 2,381,184 2,856,338 2,584,701 2,201,590 2,201,590 Other 43,452-19,871-13,600 State Subtotal 4,892,036 4,537,716 4,378,617 4,034,886 4,102,579 Federal Early Childhood Special Ed 2,300, , , , ,992 Other Federal 3,057, , ,249 1,438, ,288 Contr. Ed. Serv.-Other LEA'S 675, , , , ,000 Federal Subtotal 6,033,809 2,263,201 2,210,900 2,535,078 1,911,280 Total Revenue $68,039,327 $60,333,168 $57,972,104 $64,046,536 $62,276,262 Expenditures Salaries $27,345,822 $27,607,185 $26,280,751 $28,078,174 $28,719,158 Benefits 8,237,291 8,896,448 8,290,040 8,554,908 9,406,160 Purchased Services 18,283,017 16,317,561 15,291,799 16,749,213 17,805,634 Supplies 14,930,499 14,023,083 13,448,261 13,923,760 15,142,082 Lease Payment , Capital Total Expenditures $68,796,630 $66,844,277 $63,379,125 $67,306,155 $71,073,034 Revenue Over/(Under) Expend. (757,303) (6,511,109) (5,407,021) (3,259,619) (8,796,772) Beginning Fund Balance 33,407,927 33,252,764 27,930,710 28,550,075 25,888,143 Transfer 602,141 1,189,055 6,026, , ,815 Ending Fund Balance $33,252,764 $27,930,710 $28,550,075 $25,888,143 $17,821,186

10 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Child Nutrition Services Fund (120) Revenue Explanation Local $6,605,057 This is revenue from students and adults for the sale of meals served under the National School Lunch and Breakfast Programs as well as a la carte, snack bar, vending and special meals. This revenue also includes funds collected for special events and meetings where catering fees are charged. Changes in student population as well as approved increases in lunch or breakfast prices are the drivers for this revenue State 43,726 The State Department distributes money based on the number of meals served. The Child Nutrition Department provides an estimate of the revenue Federal 2,100,067 The Federal government provides funding based on the number of Type A meals served and on the number of free and reduced price meals served to students of families who meet guidelines for receiving free and reduced priced meals. TOTAL REVENUES $8,748,850 Expenditure Explanation 6100 Salaries and Wages 3,164,942 Salaries and wages reflect the amount paid to employees, both management and support staff, who are considered to be in a position of permanent nature or hired temporarily, including personnel substituting for those in permanent positions. In May 2013, the Board of Education approved an administrator salary schedule that includes a minimum increase of 2% with the possibility of a further increase based on experience, education and other criteria established in the salary analysis. The Board of Education also approved salary increases of 4% for support staff. Both adjustments were made to increase the schedules toward the St. Louis County median Benefits 621,681 Benefits are based on regulated payroll taxes, retirement costs, health care and life insurance costs for covered employees. No new benefits are anticipated but health insurance cost escalations have been included in the budget Purchased Services 256,321 The services are primarily equipment repairs, rental and trash hauling services. The costs associated with these services are expected to increase slightly with inflation Supplies 4,191,889 Supply costs include the inventory purchased for the cafeteria program as well as non-program sales Capital 285,000 These costs are associated with capital purchases or improvements to be made to certain cafeteria service operations. TOTAL EXPENDITURES $8,519,833

11 FUND HISTORY AND BUDGET CHILD NUTRITION SERVICES (120) Actual Projected Budget 2009/ / / / /14 Revenue Local $ 6,497,567 $ 6,484,301 $ 6,769,582 $ 6,913,300 $ 6,605,057 State 31,154 40,222 43,745 40,210 43,726 Federal 1,837,052 1,916,232 2,061,451 1,884,972 2,100,067 Other-Sale of Property 3, Total Revenue $8,369,540 $8,440,950 $8,875,053 $8,838,482 $8,748,850 Expenditures Salaries $ 2,944,867 $ 2,866,778 $ 2,946,955 $ 3,142,482 $ 3,164,942 Benefits 550, , , , ,681 Purchased Services 135, , , , ,321 Supplies 3,468,549 3,517,184 3,694,594 4,391,307 4,191,889 Capital , ,000 Total Expenditures $7,099,161 $7,099,911 $7,398,034 $8,637,635 $8,519,833 Revenue Over/(Under) Expend. 1,270,379 1,341,039 1,477, , ,017 Beginning Fund Balance 2,026,351 2,298,388 2,718,016 3,339,192 2,942,352 Transfer for Capital Purchases (998,342) (921,411) (855,844) (597,687) (500,000) and Indirect Costs Ending Fund Balance $2,298,388 $2,718,016 $3,339,192 $2,942,352 $2,671,369

12 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Student Activities Fund (140) Revenue Explanation 5179 Local $ 5,454,000 This revenue is received from patrons and students for school-sponsored activities to support clubs and other activities. This revenue is usually raised by the students themselves to support a particular activity in their schools. Any change within revenue is directly related to the schools and their activities. TOTAL REVENUE $5,454,000 Expenditure Explanation 6100 Salary and Wages $ 222,750 These salaries are for miscellaneous expenditures related to student activities such as timekeepers and supervisors at sports competitions or for teacher substitutes Benefits 44,325 These are costs related to the above mentioned salaries and wages including payroll tax and retirement costs Purchased Services 1,593,630 These purchase services cover such costs as field trips and related transportation, competitive team or club costs and related award activities plus the cost of scholarships or donations by various student activity organization. Budgeted costs will increase or decrease based on student populations and the activities in their schools Supplies 3,245,580 The primary costs covered by this category are items purchased for resale in the revenue producing school-sponsored activities. Gifts purchased by the various organizations for their schools are also included Capital 347,715 These capital expenditures are for purchases of sport or club related equipment that is purchased for the benefit of a school by the student activity organization. TOTAL EXPENDITURES $5,454,000

13 FUND HISTORY AND BUDGET STUDENT ACTIVITIES (140) Actual Projected Budget 2009/ / / / /14 Revenue Local $ 4,958,820 $ 4,940,017 $ 4,963,803 $ 6,060,000 $ 5,454,000 Federal 1,720 2,187 1, Total Revenue $ 4,960,540 $ 4,942,204 $ 4,965,670 $ 6,060,000 $ 5,454,000 Expenditures Salaries $ 188,463 $ 213,100 $ 233,825 $ 247,500 $ 222,750 Benefits 23,671 27,563 38,231 49,250 44,325 Purchased Services 1,748,675 1,588,182 1,484,174 1,770,700 1,593,630 Supplies 2,927,800 2,839,636 2,886,016 3,606,200 3,245,580 Capital , ,715 Total Expenditures $ 4,888,609 $ 4,668,481 $ 4,642,247 $ 6,060,000 $ 5,454,000 Revenue Over/(Under) Expend. 71, , , Beginning Fund Balance 2,036,164 1,993,619 2,166,061 2,423,721 2,423,721 Transfer for Capital Purchases (114,476) (101,282) (65,763) - - Ending Fund Balance $ 1,993,619 $ 2,166,061 $ 2,423,721 $ 2,423,721 $ 2,423,721

14 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Community Education Fund (160) Revenue Explanation 5122 Summer School Tuition-based K-5 $131, Local-Community Service/Education Programs 8,403,846 This revenue comes from activities performed by the District as fee based community services, not directly related to providing an education for students. The primary sources of this local revenue are: Adventure Club and School Age Adventure Club - services provided for before, during and after school child care for school age and preschool age children of the District. In addition, the school age program provides childcare for children who attend kindergarten for a half-day. 4,261,000 Preschool Activities - providing programs for Parents As Teachers as well as various programs for three and four year old children. 2,233,360 Aquatics - activities concerned with providing recreation for the community centered on competitive swimming for a wide age group. 370,000 Building Rent (Includes 5191) - services provided to the general public related to fields or facility use for a specific fee. Policy requires reimbursement by the user to the District for any personnel related costs. 403,400 Community Recreation Services -activities concerned with providing various 395,000 recreational programs for the community (basketball, volleyball, and other team sports). Center for Visual and Performing Arts - activities associated with various stage productions. 62,065 Other 679, Rentals 590, Other State Revenue 44,000 TOTAL REVENUE $9,170,581 Revenues included in the above categories are expected to increase with the growth of our community.

15 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Community Education Fund (160) Expenditure Explanation 6100 Salaries and Wages $6,111,312 Salaries and wages reflect the amount paid to employees, both management and support staff, who are considered to be in a position of permanent nature or hired temporarily, including personnel substituting for those in permanent positions. In May 2013, the Board of Education approved an administrator salary schedule that includes a minimum increase of 2% with the possibility of a further increase based on experience, education and other criteria established in the salary analysis. The Board of Education also approved salary increases of 4% for support staff. Both adjustments were made to increase the schedules toward the St. Louis County median Benefits 1,599,903 Benefits are based on regulated payroll taxes, retirement costs, health care and life insurance costs for covered employees. No new benefits are anticipated but health insurance cost escalation has been included in the budget Purchased Services 1,181,481 Purchased services for Community Education includes equipment repairs, contracted transportation, postage and professional development training Supplies 514,087 These expenditures include non-classroom teaching supplies, paper, books and play items. Budgeted costs will increase based on growth or decline of the Community Education programs Capital 109,901 Capital expenditures are for maintaining or improving facilities controlled by Community Education. These costs should remain relatively flat over the next few years. TOTAL EXPENDITURES $9,516,684

16 FUND HISTORY AND BUDGET COMMUNITY EDUCATION (160) Actual Projected Budget 2009/ / / / /14 Revenue Local Programs $ 7,937,386 $ 8,150,901 $ 8,873,427 $ 9,110,416 $ 9,126,581 Local Subtotal 7,937,386 8,150,901 8,873,427 9,110,416 9,126,581 State 47,000 47,000 44,000 44,000 44,000 Total Revenue $7,984,386 $8,197,901 $8,917,427 $9,154,416 $9,170,581 Expenditures Salaries $ 5,231,655 $ 5,248,884 $ 5,249,200 $ 6,526,287 $ 6,111,312 Benefits 1,202,082 1,232,444 1,216,546 1,539,653 1,599,903 Purchased Services 538, ,715 1,045,879 1,129,853 1,181,481 Supplies 497, , , , ,087 Capital , ,901 Total Expenditures $7,469,655 $7,525,179 $8,009,577 $9,752,117 $9,516,684 Revenue Over/(Under) Expend. 514, , ,850 (597,701) (346,103) Beginning Fund Balance 3,155,990 3,411,110 3,531,697 3,811,967 2,838,266 Transfers (259,610) (552,135) (627,579) (376,000) (229,815) Ending Fund Balance $3,411,110 $3,531,697 $3,811,967 $2,838,266 $2,262,348

17 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Special Revenue (Teachers) Fund (200) Revenue Explanation Local - Property Taxes $70,644, Local - Sales Tax (Proposition C) 16,510, Local - Merchants and Manufacturers Taxes (M&M) 5,185, Local - Interest on Investments and Delinquent Taxes 6, VICC - Cost of Education Reimbursement 10,188, Other Local 1,762, County - Fines, Forfeitures, Escheats 287, County - Assessed Utility Tax 1,693, State - Foundation Formula 20,150, State - Early Childhood Special Ed 3,847, State - Classroom Trust Fund 8,602, State - Educ. Screening (Parents as Teachers) 86, Other State 47, 's Federal 2,111,723 TOTAL REVENUE $141,124,460 Please see the General Revenue Explanation following the fund schedules for details concerning the Special Revenue (Teachers) Fund revenue. Local property tax, merchants and manufacturing taxes are allocated among the General, Special Revenue (Teachers), Debt Service and Building Funds according to the tax levy associated with each fund and therefore the distribution is consistent across all funds. The Special Revenue (Teachers) Fund will is estimated to receive $ of the FY14 budgeted $ tax levy. The District has chosen to place all of the State revenue sources from the foundation formula and the Classroom Trust fund in the Special Revenue (Teachers) Fund.

18 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Special Revenue (Teachers) Fund (200) Expenditure Explanation ,6141 Salaries-Certified Personnel $104,607,024 These expenditures are for full or part time contract and prorated portions of the costs for work performed by certified administrators and teachers. In May 2013, the Board of Education and the Rockwood National Education Association ratified an extension of their contract through 2015/16. The budget for certified teacher salaries for the school year includes a 3.25% in in salary. These adjustments were made to increase the salary schedules toward the St. Louis County median Benefits 30,565,573 These are expenditures for all payable related benefits on the above mentioned certificated employees including retirement costs, Medicare and insurance costs Purchased Services 625,000 This expenditure is for the cost of Employee Assistance Programs. TOTAL EXPENDITURES $135,797,598 These are the only expenditures that may be charged to the Special Revenue (Teachers) Fund.

19 FUND HISTORY AND BUDGET SPECIAL REVENUE (TEACHERS) FUND (200) Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $63,682,653 $68,392,855 $71,433,495 $69,448,131 $70,644,153 Proposition C Sales Tax 14,643,662 13,321,357 16,307,188 16,225,514 16,510,384 M&M Surcharge 5,634,901 5,658,523 5,530,464 5,183,363 5,185,324 Interest 11,063 6,147 1,276 9,074 6,882 VICC Cost of Educ. Reimb. 8,139,107 12,721,674 11,147,244 10,769,152 10,188,222 Other 1,562,126 1,941,058 1,854,012 1,712,417 1,762,256 Local Subtotal 93,673, ,041, ,273, ,347, ,297,221 County Assessed Utility Tax 1,327,327 1,122,730 1,970,337 1,819,980 1,728,121 Fines, Forfeitures, Escheats 280, , , , ,715 County Subtotal 1,607,947 1,407,489 2,277,331 2,105,692 2,015,836 State Foundation Formula 14,977,735 15,628,578 21,286,176 22,466,362 20,150,478 Classroom Trust Fund 6,822,509 8,212,052 7,653,404 7,206,203 8,602,280 Gifted/Career Ladder 72,000 20, Educ/Screening Program (PAT) 274, , ,212 86,070 86,070 Early Childhood Special Ed 2,250,905 4,167,041 4,516,881 3,847,378 3,847,378 Other 12,000 19,412 18,767 28,474 13,474 State Subtotal 24,409,310 28,219,483 33,667,441 33,634,487 32,699,680 Federal Federal 4,910,094 4,687,600 4,388,369 2,054,906 2,111,723 Total Revenue $124,600,864 $136,356,185 $146,606,819 $141,142,736 $141,124,460 Expenditures Salaries $103,585,777 $104,240,436 $103,599,736 $103,088,367 $104,607,024 Benefits 27,154,474 28,092,668 28,779,360 29,055,946 30,565,573 Purchased Services 467, , , , ,000 Total Expenditures $131,207,557 $132,832,364 $132,999,612 $132,911,562 $135,797,598 Revenue Over/(Under) Expend. (6,606,693) 3,523,821 13,607,207 8,231,174 5,326,862 Beginning Fund Balance 10,732,278 4,125,585 7,649,406 21,256,613 29,487,787 Ending Fund Balance $4,125,585 $7,649,406 $21,256,613 $29,487,787 $34,814,649

20 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Debt Service Fund (300) Revenue Explanation Local - Property Taxes $20,904, Local - Merchants and Manufacturing Taxes (M&M) 1,533, Local - Interest on Investments and Delinquent Taxes 980, State - Assessed Utility Tax $504,040 TOTAL REVENUE $24,038,543 Please see the General Revenue Explanation following the fund schedules for details concerning the Debt Service Fund revenue. Local property tax, merchants and manufacturing and interest from delinquent taxes are allocated among the General, Special Revenue (Teachers), Debt Service and Building Funds according to the tax levy associated with each fund and therefore the distribution is consistent across all funds. The Debt Service Fund is estimated to receive $.68 of the FY14 budgeted $ tax levy. Expenditure Explanation 6611 Principal Payment on Current Debt $43,470, Interest Payment on Current Debt 8,820, Fees to a Paying Agent for Services Rendered 7,500 for Bonded Indebtedness and Other Related Costs TOTAL EXPENDITURES $52,298,092 The following charts depict the change anticipated in the Debt Service Fund expenditures over time. The Debt Service Fund, according to Missouri Statute, must be maintained in a separate bank account.

21 FUND HISTORY AND BUDGET DEBT SERVICE (300) Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $23,344,721 $22,686,815 $21,706,194 $21,574,106 $20,904,570 M&M Surcharge 2,065,621 1,876,984 1,680,710 1,611,065 1,533,186 Interest 216, , ,708 1,006, ,349 Other 2,107, ,434 1,200, , ,398 Local Subtotal 27,734,430 25,357,241 25,534,379 24,307,966 23,534,503 County Assessed Utility Tax 483, , , , ,040 Total Revenue $52,682,718 $25,737,948 $36,072,495 $24,838,775 $24,038,543 Expenditures Principal and Interest $27,841,578 $27,621,599 $28,846,453 $25,693,341 $52,298,092 Total Expenditures $27,841,578 $27,621,599 $28,846,453 $25,693,341 $52,298,092 Bond Issue Proceeds 24,465,000-9,905, Revenue Over/(Under) Expend. 24,841,140 (1,883,651) 7,226,042 (854,566) (28,259,549) Beginning Fund Balance 25,258,209 50,099,349 48,215,697 55,441,739 54,587,173 Ending Fund Balance $50,099,347 $48,215,697 $55,441,739 $54,587,173 $26,327,624

22 DEBT SERVICE The Debt Service Fund balance is projected to decrease $28.3 million to $26.2 million as of June, The majority of the decline in fund balance is attributable to a $30.7 million payment towards the 2006 bond issue. Current state law limits the bonded indebtedness to a maximum of 15% of assessed value or $465.4 million (FY14 estimated assessed value is $3,102,698,674). The District currently (6/30/13) has an outstanding bonded debt level of $206.9 million, well within the legal limits for school districts. The FY budget for the Debt Service fund includes $43,470,000 in principal and $8,820,591 in interest. Debt Service Schedule FY Issue Total Debt Date Principal Interest Service 2006 Bond Issue $ 28,900,000 $ 1,775,125 $ 30,675, A & B 3,950,000 2,579,375 6,529, A Bond 9,820, ,500 10,788, A,B,C,D Bond 800,000 3,131,791 3,931, , ,800 TOTAL $ 43,470,000 $ 8,820,591 $ 52,290, A,B,C,D Bond 8% 2009 A Bond 21% 2008 A & B 12% Debt Service Schedule FY Total Debt Service % 2006 Bond Issue 58% Debt Service History FY Bonded Debt Ending Refinance Principal Interest Total New Debt Balance as of 6/30 Amount Paid Paid Paid Issued 6/ $ 10,050,000 $ 5,986,707 $ 16,036,707 $ 116,953, ,215,000 6,008,203 17,223,203 38,500, ,238, ,975,000 5,858,650 19,136, ,263, ,610,000 5,538,660 20,148,660 44,470, ,123, ,885,000 6,113,718 19,513, ,238, ,197,048 8,973,339 20,170, ,066, ,361,552 8,798,748 20,160,300 44,400, ,104, ,780,000 7,417,352 23,197, ,324, ,350,000 22,190,000 7,298,129 29,488,129 91,665, ,449, ,030,000 16,684,733 8,485,308 25,170,041 32,945, ,680, ,370,000 8,334,720 27,704,720 79,465, ,775, ,965,000 9,654,593 27,619, ,810, ,905,000 18,700,000 10,144,256 28,844, ,015, $ 16,105,000 $ 9,538,341 $ 25,643,341 $ 206,910,000 $250,000,000 $150,000,000 Bonded Debt Balance Service History $50,000,

23 (2,785,845) 776,863 (2,203,694) 139,021 1,756,562 4,820,652 5,650,059 6,007,109 3,075,335 4,584,512 4,000,150 15,635,278 23,827,045 24,065,316 14,593,943 17,010,969 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Debt Service Fund - Revenue vs. Payments (Assumes Current 68 Cent Levy) Debt Service Fund Revenue Total Debt Service Payments

24 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Capital Fund (400, 402, 406, 408, 460) Bond Issue Revenue Explanation 5611 Sale of Bonds $0 These revenues are shown when bonds are issued and are self-balancing with the related construction or capital accounts. The District sold a $38,500, General Obligation Bond Issue in August 2001 along with the $8.6 million Leasehold Revenue Bond Issue. A bond issue was sold for $44,470,000 in May In addition, the District sold a $44,400,000 issue in 2006, $74,500,000 in 2008, $55 million in TOTAL REVENUE $0 Expenditure Explanation 6500 & 6600 Capital Outlay & Principal and Interest $0 These expenditures are for bond related projects and major capital improvements. TOTAL EXPENDITURES $0 These expenditures are related to the bond issues approved by the District s voters for long-range projects. The Board of Education s goal of providing a supportive, welcoming, respectful and collaborative attitude for all students in this district are supported through the efforts of the bond issue sales and the funds provided from them. The majority of these fund expenditures have historically been used to build new schools and add classroom spaces; the District has constructed five new buildings in the past ten years. Also, many schools have had major additions in teaching stations, gymnasium and cafeteria additions and improvements, and theatre additions to several high schools. The District has concentrated on major building maintenance such as roofing, HVAC, flooring and parking area renovations, wiring upgrades, technology additions, library additions or expansions, office expansion and multi-purpose room renovations at most of our school campuses. During the 2012/13 school year, the District spent the remaining $5.8 million from the 2010 bond issue. All projects have been completed and the District currently has no bond funds available for the 2013/14 school year.

25 FUND HISTORY AND BUDGET CAPITAL FUND (400, 402, 406, 408, 460) BOND ISSUE Actual Projected Budget 2009/ / / / /14 Revenue Local Interest $ 871,253 $ 849,671 $ 228,801 $ - $ - Other Sources of Funds Sale of Bonds 33,905,000 21,095, Total Revenues $ 34,776,253 $ 21,944,671 $ 228,802 $ - $ - Expenditures Capital and P&I $ 36,018,002 $ 34,858,505 $ 22,648,265 $ 5,766,501 $ - Total Expenditures $36,018,002 $34,858,505 $22,648,265 $5,766,501 $0 Revenue Over/(Under) Expend. ($1,241,749) ($12,913,833) ($22,419,462) ($5,766,501) $0 Beginning Fund Balance 42,341,547 41,099,798 28,185,965 5,766,501 0 Ending Fund Balance $41,099,798 $28,185,965 $5,766,501 $0 $0

26 FY 2013/14 BUDGET Building Fund (450) Revenue Explanation Local - Property Taxes $3,786, Local - Merchants and Manufacturing Taxes (M&M) 277, Local - Interest on Investments and Delinquent Taxes 21, Local - Other 5, County - State Assessed Utility 38, Other State 1, Federal 20,000 TOTAL REVENUE $4,151,226 Please see the General Revenue Explanation following the fund schedules for details concerning the Capital Fund revenues. Local property taxes, merchants and manufacturing and interest from delinquent taxes are allocated among the General, Special Revenue (Teachers), Debt Service and Building Funds according to the tax levy associated with each fund and therefore the distribution is consistent across all funds. The Capital Fund is estimated to receive $.1231 of the FY14 budgeted $ tax levy.

27 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET Building Fund (450) Expenditure Explanation Buildings $1,581,000 The Building Fund supports alterations and installation of heating and ventilating systems, electrical systems, plumbing, fire or security and other service systems. A significant portion of the 2013/14 budget will be spent to improve infrastructure and the roof at Ellisville Elementary Improvements Other Than Buildings 17,252 These expenditures are for additional site improvements including grading, landscaping, seeding, plants; construction of new sidewalks, roadways, retaining wall, sewer, and storm drains Regular and Instructional Apparatus Equipment 3,076,011 These are expenditures for the initial, additional, and replacement of equipment, furniture and machinery. Approximately $2.5 million has been budgeted for critical equipment replacements that are required to deliver and meet current curriculum standards. Of the $2.5 million, $1.8 million will be spent for PC refresh and $.6 million on infrastructure Vehicles 121,000 These expenditures are for the purchase of maintenance and warehouse vehicles (does not include pupil transportation vehicles). These expenditures will change annually with the need to replace existing or add new vehicles to the District fleet Long and Short Term Lease Payments 104,367 These expenditures cover the principal, interest and paying agent fees for the District's leases on HVAC equipment. The HVAC lease-hold revenue bond will continue for an additional 5 years. TOTAL EXPENDITURES $6,019,593 These expenditures support the Board of Education s goals to insure that all schools have a supporting, welcoming, respectful and collaborative attitude toward students, parents, patrons and staff.

28 FUND HISTORY AND BUDGET BUILDING FUND (450) Actual Projected Budget 2009/ / / / /14 Revenue Local Property Taxes $4,806,348 $4,670,800 $4,469,012 $1,882,007 $3,791,258 M&M Surcharge 425, , , , ,552 Interest 1, ,664 1,262 Other 26,062 31,794 30,321 10,285 21,071 Local Subtotal 5,259,314 5,089,944 4,845,561 2,036,109 4,091,143 County Assessed Utility Tax 72,735 54, ,258 42,934 38,683 State Other 64, ,400 State Subtotal 64, ,400 Federal Grants 36,216 42,626 40,488 20,000 20,000 Other 122,044 87, Federal Subtotal 158, ,051 40,488 20,000 20,000 Total Revenue $5,555,066 $5,274,868 $4,991,307 $2,099,043 $4,151,226 Expenditures Capital $5,479,212 $3,203,758 $2,822,100 $3,853,741 $4,795,263 Cost of Issuance ,119,963 Lease Payment 923,235 1,813, , , ,367 Total Expenditures $6,402,447 $5,017,089 $3,479,243 $3,958,296 $6,019,593 Revenue Over/(Under) Expend. (847,381) 257,779 1,512,065 (1,859,253) (1,868,367) Beginning Fund Balance 1,243,260 1,167,366 1,865,263 3,761,770 2,278,517 Transfer for Capital Purchases 771, , , ,000 - Ending Fund Balance $1,167,366 $1,865,263 $3,761,770 $2,278,517 $410,149

29 TOTAL REVENUE BY FUND COMPARISON PROJECTED BUDGET % of TOTAL % FY 2012/13 FY 2013/14 REVENUE CHANGE General $ 88,151,120 $ 85,692, % -2.8% Special Revenue (Teachers) 141,142, ,124, % 0.0% Debt Service 24,838,775 24,038, % -3.2% Building 2,099,043 4,151, % 97.8% TOTAL FUNDS $ 256,231,674 $ 255,006, % -0.5% General-33.6% BUDGET FY 2013/14 TOTAL REVENUE % BY FUND Building-1.6% Special Revenue (Teachers)-55.3% Debt Service-9.4% The District's revenue is primarily from local efforts (81.8%) with the greatest portion of revenue (61.2%) from local tax revenue. The assessed valuation is forecasted to be $3,102,698,674 for the 2013/14 year. Total revenues are budgeted to decrease.5% ($1.2 million) in FY2013/14. The table below summarizes the changes between revenue sources. PROJECTED BUDGET SOURCE FY 2012/13 FY 2013/14 CHANGE Local $ 211,980,135 $ 211,972,216 $ (7,919) State 37,756,583 36,891,385 (865,198) Federal 6,049,956 5,698,070 (351,886) Other 445, ,000 - Total $ 256,231,674 $ 255,006,671 $ (1,225,003)

30 ROCKWOOD R-VI SCHOOL DISTRICT FY 2013/14 BUDGET GENERAL REVENUE EXPLANATION The following explanations cover the major local, county, state and federal revenues which are allocated to the General, Teachers, Debt Service and/or Building Funds according to the tax levy associated with each fund or at the discretion of the Board of Education. Other revenues are particular to the funds that they support. LOCAL 5111 Current Taxes these revenues are derived from taxing real and personal property within the District for the current year. The estimated $ tax levy for FY2013/14 will be levied on each $100 of assessed valuation. Each odd numbered year is a reassessment year. This is the main source of revenue for funding the operations of the District, representing 59.2% of the operating revenue, or 56.6% of total revenue. This revenue is expected to decline with the estimated decline in assessed valuation of property Delinquent Taxes this revenue is derived from collection of delinquent prior years taxes Sales Tax (Proposition C) these revenues are collected by the state through a 1% sales tax on consumer goods and then distributed to school districts based on the average daily attendance. The current estimated per pupil distribution is $854 and will increase to $879 for FY 2013/14. These revenues represent 6.47% of the total revenue of the District and will fluctuate with the student population and local economic factors. Payment is based on the previous year s weighted average daily attendance (WADA) and the District is estimating this amount to decrease by 216 students Merchants and Manufacturers Tax these revenues are a surcharge on commercial real estate to replace revenue lost when the past business inventory tax was eliminated. No significant changes are anticipated in this revenue Interest these revenues are from earnings on all temporary deposits and investments plus interest received on delinquent taxes. As fund balances increase over time and as interest rates change, these revenues will fluctuate. The District has seen a decrease in interest revenue for the current year versus prior year Voluntary Interdistrict Choice Corporation (VICC) these revenues are based on the number of volunteer transfer students (VTS) enrolled in the District from the St. Louis City district. As the number of VITS students served declines, the total revenue will decline. Currently, this revenue source represents 4.0% of total revenues.

31 COUNTY 5221 State Assessed Utility these revenues are assessed against the property of railroad and utility companies based on the county assessed valuation and the average county school district levy rate. These revenues are assumed to remain flat. They represent 1.2% of total revenue. STATE 5311 Foundation Formula these revenues are state general fund amounts distributed to school districts based on a formula calculated to provide equity in revenues to all school districts in the state. These revenues are 11.3% of total revenue when combined with revenue object 5319 (also from State Foundation Formula) Transportation these revenues are from the state for reimbursement of a portion of the cost to transport students to and from school. This revenue will increase as the cost of transportation increases ECSE - State- these revenues support the joint program with the District and the State of Missouri for Early Childhood Special Education and will continue in the future with growth in this important program. Federal funds are received and reported under object Classroom Trust Fund - these revenues are part of the new Missouri Foundation Formula as explained in revenue object The Classroom Trust Fund portion of the formula is deducted off the top and may be placed in any fund and spent for any expenditure at the discretion of the Board of Education Parents As Teachers these revenues are received from the state for Early Childhood Screening and Parents as Teachers programs. They are projected to decline. FEDERAL 5418 ROTC Reimbursements these revenues are federal government reimbursements for the various military services reserve officer-training programs ECSE Federal see 5314 above for explanation of Early Childhood Special Education Title I these revenues are appropriated from the U.S. Congress for Elementary and Secondary Education Amendments of 1965 for special programs. A portion of the Voluntary Transfer Student revenue is received through the Federal Title I program as a pass through. Funding from Title I in 2013/14 was affected by the Federal sequestration.

32 TOTAL REVENUE BY SOURCE ACTUAL ACTUAL ACTUAL PROJECTED BUDGET 09/10 10/11 11/12 12/13 13/14 Tax Rate $ $ $ $ $ Assessed Valuation $3,498,569,663 $3,384,944,910 $3,238,428,395 $3,270,975,480 $3,102,698,674 Revenues Local Sources: Property Taxes $149,782,487 $154,432,221 $153,494,317 $154,723,711 $156,038,555 Sales Taxes 14,643,662 13,321,357 16,307,188 16,225,514 16,510,384 VICC 13,106,568 13,154,423 11,223,776 10,769,152 10,188,222 All Other Local 25,788,232 24,981,618 26,656,435 26,701,046 25,839,446 County Sources 3,117,999 2,612,659 4,252,949 3,560,712 3,395,610 State Sources Foundation Formula 21,800,244 23,840,630 28,939,580 29,672,565 28,752,758 All Other State 7,659,013 9,003,791 9,197,222 8,084,018 8,138,627 Federal Sources 12,229,485 8,514,395 8,220,642 6,049,956 5,698,070 Total Revenues 248,127, ,861, ,292, ,786, ,561,671 Bond Issue 58,370,000 21,095,000 9,905, Sale of Property 39,984 42,821 40,763 20,000 20,000 Non-Handicap Trans/LEAS/SSD Trans 675, , , , ,000 TOTAL ALL SOURCES $307,212,909 $271,441,164 $268,679,818 $256,231,674 $255,006,671 * Taxes are inclusive of property tax, merchants and manufacturing tax, payment in Lieu of tax and financial institution tax. Note: Foundation Formula includes Classroom Trust Funds MAJOR REVENUE SOURCES Included in the above are four major revenue sources for the District which are local property taxes, state foundation formula funds, voluntary transfer student (desegregation) aid and sales taxes. When combined, these four sources account for $211,489,919 or 82.9% of total District revenues and $189,052,162 or 91.1% of all operating revenues in FY14. Rockwood School District's 4 Major Revenue Sources 28,752,758, 13.6% 10,188,222, 4.8% 16,510,384, 7.8% 156,038,555, 73.8% Property Taxes Sales Taxes VICC (Desegregation Aid) Foundation Formula

33 Four Major Revenue Sources: Property Taxes Property taxes are derived from taxing real and personal property. The tax rate, set each year in September, is levied on each $100 of assessed valuation. This valuation is determined by the county assessor's office, based on current market value of residential, commercial and agricultural real estate, and personal property. 2013/14 assessed values are estimated to decrease $168 million (5.1%) to $3.1 billion based upon current estimates. Listed below is a summary of the District s tax rates. The resulting estimated tax rates for 2013/14 are as follows: FY FY FY 11/12 ADJ. 12/13 ADJ. 13/14 Incidental Special Revenue (0.0500) (Teachers) Capital Projects (0.0800) Debt Service TOTAL To the extent that the District's assessed values, excluding increases from personal property and new construction, exceed the lesser of the Consumer Price Index (CPI) or 5%, the District is required, based upon calculations made in accordance with the rules and regulations of the State Auditor's office and the Hancock amendment, to decrease its operating tax levy from the prior year's rate. In a year when the assessed valuation declines, the District is allowed to roll up the operating tax levy. Due to an estimated decrease in assessed valuations, the District is expected to increase the operating tax levy by cents. This would put the tax rate within cents of the maximum authorized levy. Foundation Formula The Missouri legislature convened a 2006 joint House/Senate committee to review, study, obtain input, and make recommendations to the legislature related to changing state educational funding to ensure adequate funding for all education programs in Missouri Public Schools. These efforts resulted in the passage of Senate Bill 287 (SB287), legislation that changes the formula for distributing state education dollars from a tax levy/attendance based formula to a student-needs based formula. This legislation calls for a seven year phase in; for a guaranteed per pupil average daily attendance (ADA) distribution base of $6,131 for adjustments to be made for classifications such as at risk, gifted, special needs, and ESL (non-english speaking); for dollar