TO : Board of Education FROM: David D. Hart, Chief Financial - - PDF document

TO: Board of Education FROM: David D. Hart, Chief Financial Officer DATE: May 11th, 2012 SUBJECT: Responses to Questions from May 7th Finance and Audit Committee Meeting This memo contains responses to the questions received in conjunction with materials presented at the May 7th Finance and Audit Committee meeting. Unless otherwise noted, all references in this document are to the FY2012-2013 Proposed Budget slide deck. In the presentation posted to Board Docs changes are noted in green type font to distinguish them from changes made between the April and May meetings which are shown in red type font.

• Q1. What is the District’s required contribution to PERA?

The PERA contribution rates can be found at this link http://www.copera.org/pdf/5/5-123.pdf. The total contribution rate for calendar year 2012 and 2013 is as follows: Calendar Year Statutory Employer Contribution Amortization Equalization Disbursement (AED) Supplemental Amortization Equalization Disbursement (SAED) Total Contribution % for the Year 2012 13.75% 3.00% 2.50% 19.25% 2013 13.75% 3.40% 3.00% 20.15% The district received a credit of 14.72% for calendar year 2011 and 15.37% projected for calendar 2012 based upon the District’s payments for its pension obligations (PCOPs). Slide 36 has been adjusted to include a link to the PERA web site.

• Q2. Please provide sub-totals for Program/Activity on the unit level detail slides.

Sub-totals have been added to slides 54 through 60.

• Q3. What is the process for accepting grants in the Special Revenue Fund?

Added slides 11 and 12 summarize the process the District uses for accepting grants.

• Q4. For the Far Northeast (FNE) provide a breakdown of projected expenditures for the FNE schools for next

year as well as actuals for 11-12. Calculate on a per-pupil basis. Expenses attributed to the Far Northeast Turnaround efforts are summarized on slide 13. The expenses directly impacting students are the programmatic expenses related to extending the school day, extending the school year, and providing targeted tutoring as well as other efforts unique to each school. Slide 13 also summarizes the funding sources utilized to support the program. The federal 1003g funds and philanthropic sources have been granted to the district specifically for the purpose of improving achievement in the FNE schools. The Targeted Intervention Funds are the only local General Fund dollars used for this effort. Slide 14 contains a summary which calculates per-pupil expenditures related to the programmatic costs of the FNE Turnaround effort. The average total cost per pupil is calculated by dividing the total programmatic costs by the number of students in the affected schools. The General Fund per pupil cost is determined by multiplying the total per-pupil expenditure by 15% because General Funds are ~15% of the total resources allocated to the effort.

Denver Public Schools

Proposed Budget Fiscal Year 2012-13

Presentation to the Finance and Audit Committee

May 17, 2012

• Mapping of changes to April 16th, 2012 presentation
• Providing responses to inquires received April 16th through May 3rd 2012

Proposed Budget FY2012-13 - Change to Capital Reserve and Building Funds

Capital Reserve Fund  FY2012-13 beginning balance increased to reflect additional transfer of $10M in FY2011-12  There are no changes planned for spending or use of fund balance at this time  If an increase in appropriation is needed, appropriate authorization will be sought Building Fund  Project acceleration and timing of costs in FY2011-12 will result in an increased spending resulting in a lower ending balance for the fiscal year  This translates to a $42 million dollar reduction to beginning fund balance for FY2012-13  Overall the Building Fund is being managed within the funds available

• 2 -

Proposed Budget FY2012-13 - Extended Learning Opportunities

 FY2012-13 budget included $2.5M for schools approved through an application process  7 schools currently approved for ELO:

– Grant Middle School – Cole Arts and Sciences – Johnson Elementary – Lake International – Manual High School (pending final approval) – Merrill Middle School (pending final approval) – North High School (pending final approval)

 The current accepted proposals are lower than planned, so the use of funding will likely be lower than

• anticipated. This reduced funding is expected to partially or fully offset the funds needed to increase

funding for Green Schools (see following page)

• 3 -

Proposed Budget FY2012-13 - Change to General Fund – Funding of Green Schools

 For Fiscal Year 2012-13, the district plans to fund an allocation to all schools with an overall Green School Performance Framework (SPF) rating level that maintained the Green SPF rating from the prior year  The Green SPF performance maintenance allocation will be $35 per K-12 pupil (K=0.5)  This funding will be awarded to 36 schools, representing approximately 19,000 funded pupils for an estimated cost of $707,000  In January, the Board of Education raised the possibility of funding Green schools. At the time, CDE’s forecast showed a $140 per pupil reduction  As of the March CDE forecast, the per-pupil funding is expected to be virtually flat with a $5 reduction compared to last year. This improved funding forecast led us to revisit this funding allocation

• 4 -

Proposed Budget FY2012-13 - Change to General and DoTS Fund

 The Emergency Reserve has been increased by $188k to reflect the inclusion of General Projects Fund (Fund 13) in the 3% reserve calculation. The General Projects Fund was excluded from the reserve calculation in the proposed budget. The general contingency was reduced by a similar amount so that the total General Fund appropriation is unchanged  Reclassifications of reserves were made between funds within the General Fund which did not affect the total appropriation  For the DoTS fund a portion of historical activity in this fund is more properly accounted for in the General Projects Fund (Fund 13) so the appropriation for this fund has been reduced by $384,937

• 5 -

Proposed Budget FY2012-13 – Fund Summaries, Detail and Resolutions

 In the April 16th presentation each fund was presented with worksheets showing the proposed budget. This presentation includes narrative descriptions and expanded worksheets to highlight changes through May 4 and provide budgeted dollars and FTEs by department for both the General Fund and Government Designated Grants Fund.  In the April 16th presentation the resolutions for Intra-Fund Borrowing Authorization, Interest-Free Loan Program, TABOR emergency reserve, Setting Tuition Rates and the Parameters resolutions for Refunding the Series 2011A COPs and General Obligation bonds, were presented in summary format. In this presentation these resolutions are included with the detail resolution documents which are consistent with prior years

• 6 -

Proposed Budget FY2012-13 - Response to Inquiry for Enrollment Projections by Electoral District (Total Enrollment)

School Board FY2011-12 October Count FY2012-13 Projection District 1 – Anne Rowe 10,536 10,773 District 2 – Andrea Merida 19,345 19,937 District 3 – Jeannie Kaplan 9,462 9,477 District 4 – Nate Easley 27,348 28,507 District 5 – Arturo Jimenez 14,170 14,490 No District 41 46 Total 80,902 83,230 Note: "No District" schools are DPS Night School & ASCENT

• 7 -

Proposed Budget FY2012-13 - Response to inquiry on the percent of the Districts budget on Central Administration

• 8 -

DPS FY 12-13 Budget Summary

Budgeted Revenues General Fund (School Finance Act & State Categorical) $ 7,271 Mill Levy Override 1,036 Per Pupil Revenue $ 8,307 Budgeted Expenditures

• I. School

School Direct $ 5,635 66% ProComp (Teacher Salary and Benefits) 431 5%

• II. School Support Services

Special Education/Student Serv. $ 634 7% 4660 Severe Disabilities 303 48% 4650 Preschool - Special Ed 37 6% 4631 Student Services Charter Schools 26 4% Elementary Schools 107 17% High Schools 61 10% K-8 Schools 35 6% Middle Schools 33 5% Facilities, Utilities, Insurance $ 572 7% 8160 Custodial 287 50% 8170 Utilities 207 36% 8350 Safety and Security 72 13% 8710 Planning and Analysis 6 1% Academic Support $ 384 5% 2189 Teacher Performance Assessment 52 14% 4149 Assessment And Research 44 11% 2125 Post Secondary Readiness 44 11% 4110 Chief Academic Officer 42 11% 2124 Instructional Support Teams 27 7% 4151 Humanities 24 6% 4510 Limited English Proficiency 23 6% 4130 Educational Resource Services 18 5% 4152 Math/Science 17 5% 4660 Severe Disabilities 15 4%

DPS FY 12-13 Budget Summary

Transportation $ 266 3% 8310 Transportation 266 100% Early Ed, Community Engagement, Adult Ed, Voc Ed $ 99 1% 3294 Early Education 41 42% 2541 Office Of Parent Engagement 16 16% 4153 College Ready 9 10% 4310 Career & Technology Ed-Hs 6 6% 3810 Athletics 4 4% Other $ 168 2% 9109 Procomp Trust 25 15% 8920 Educational Technology 18 11% 8715 Osri-School Reform &Innovation 18 11% 2130 Legal Services 14 8% 2173 Choice And Enrollment Services 14 8% 2510 Communications Office 12 7% 2540 Community Relations 11 6%

• III. Central

Central Support Services $ 396 5% 8150 Maintenance 71 18% 7140 Personnel Services (HR) 70 18% 8922 Dots-Info Systems Technology 48 12% 8930 Dots-Technology Applications 35 9% 8935 Dots-Customer Relations Mgmt 32 8% 9111 Budget Office 19 5% 8923 Dots-Telecommunications 13 3% 7190 Payroll 11 3% 9120 General Ledger Accounting 10 3% 9114 County Treasurer Fees 9 2% 2172 Student Submissions 9 2% 2110 Office Of The Superintendent 8 2% 2171 Strategy Program Office 7 2% 9141 Purchasing 7 2% Per Pupil Expenditures $ 8,585 100%

Proposed FY2012-13 Budget - Response to inquiry for line item detail of the Districts budget

 Proposed FY2012-13 Budget Line Item Detail

– “FY 12-13 Proposed Budget – By Account Code”

 For more detailed definitions of account codes, please click here

– Section 2A: “Understanding Account Codes”

• 9 -

Proposed Budget FY2012-13 - Response to inquiry for analysis of use of fund balance

Dollar Amount Explanation Comments (20,000,000) 2/2/12 Use of Fund Balance 8,600,000 Increased revenue due to updated State Budget $5 per pupil cut offset by increasing enrollment (net of Charter Portion) (5,225,000) Unassigned Teachers Budgeted as a reserve in FY12; no increase in spending (4,131,000) Additional Risk Management Funding Fully utilized reserves in FY12; no increase in total spending (2,900,000) CDE Audit Budgeted as a reserve in FY12; no increase in spending (840,000) Additional ECE/Kinder Funding Fully utilized reserves in FY12; no increase in total spending (675,000) Title I Backfill for High Growth Charters CDE definition of "high growth" has expanded (600,000) Student Engagement Initiative Required general fund match for athletics and activities grant (500,000) Operations savings equal to $1M (vs. $1.5M Presented) Improved forecasting (400,000) SBB Reduction equal to $3.6M (vs. $4m Presented) Improved forecasting (300,000) Relocation Support Budgeted as a reserve in FY12; no increase in spending (1,000,000) Other / Miscellaneous Negotiated Paras, Steele Planetarium, Foundation Staff (27,971,000) Approximate Current Use of Fund Balance

• 10 -

Grants in DPS: Funding Innovation

• 11 -

 Grants are applied for when a Denver Plan priority is identified and there is no funding available  Grant dollars provide supplemental funding that enables DPS to move at an accelerated pace from status quo to innovative practices  Grants are necessary if DPS is to meet its goal of graduating all students ready for college and the work force

– Diminishing general fund support from the state has reduced discretionary funding that might otherwise be available for these efforts

 Grant funds come from governmental and private sources  Foundation grants are solicited if a funding potential/priority match is not identified in the governmental competitive process

NEW SLIDE

The Grant Cycle

• 12 -

Identify a need Accept the award Close out the grant

• Apply for a grant
• Receive an award
• Implement the program
• Manage for audit and

reporting requirements

• Evaluate for

programmatic and fiscal performance

• Return on Investment

NEW SLIDE

FNE Turnaround Effort Expenditures and Projections

• 13 -

NEW SLIDE

FNE Turnaround Effort: Programmatic Expenditures by Pupil

• 14 -

NEW SLIDE

Denver Public Schools

Proposed Budget Fiscal Year 2012-13

Presentation to the Finance and Audit Committee

• The following presentation was originally given to the Board of Education

Work Session on April 16, 2012

• This presentation is dated May 4, 2012 for presentation to Finance and

Audit Committee May 7, 2012

• Changes to original presentation are captured by:
• Immaterial edits in red type alone
• Potentially material edits in red type and old data shown in strikeout

with new data

• Narrative descriptions accompanied by expanded fund worksheets

that capture changes through an additional column

• Changes since FAC meeting on May 7th, 2012 captured with green type font

May 7, 2012

Denver Public Schools

Proposed Budget Fiscal Year 2012-13

Presentation to the Board of Education Meeting

April 16, 2012

Agenda

 Statutory and Regulatory

– Colorado and Federal Law, e.g. CRS 22-44-100 et al. – US DoE, CDE, and DPS, e.g. CDE’s Financial Policies and Procedures Handbook

 Denver Plan: Strategic Management of Financial Resources

– Strategy 1: Ensure Fiscal Stability – Strategy 2: Maximize Financial Resources – Strategy 3: Align Resources with Goals – Strategy 4: Increase Transparency

 Summary of FY2012-13 Proposed Budget  Budget Assumptions & Board Actions  Appendix

• 17 -

State Required Compliance

Statutory Requirements DPS Compliance C.R.S. 22-44-103 “The board of education of each school district shall adopt a budget and an appropriation resolution for each fiscal year, prior to the beginning of the fiscal year.” This budget’s revenue projections were prepared using information provided by the Colorado Department of Education, the County Assessor, the federal government, and other sources using methods recommended in the Financial Policies and Procedures Handbook. This budget’s expenditure estimates were prepared based on program needs, enrollment projections, mandated requirements, employee contracts, contracted services, and anticipated changes in economic conditions using methods described in the Financial Policies and Procedures Handbook. C.R.S. 22-44-107(1) “The board of education of each school district shall adopt a budget and an appropriation resolution at the time it adopts the budget. The appropriation resolution shall specify the amount of money appropriated to each fund;…..” The budget resolutions include an appropriation resolution listing the amounts appropriated for each fund. C.R.S. 22-44-110(1) “Any person paying school taxes in the school district is entitled to attend the meeting of the board of education at which the proposed budget for the district will be

• considered. At such meeting , the board shall review the

functions and objects of the proposed budget. Any taxpayer or his representative is entitled to file or register

• bjections to the proposed budget prior to its final

adoption.”. A notice will be published on April 22nd notifying the public that the proposed FY2012-13 budget is available for inspection at the Budget Office and that the proposed budget will be presented at the May 17th Board of Education meeting.

• 18 -

Overall Financial Reporting Timeline to the Board of Education

2012 Oct Nov Dec Jan Feb Mar Apr May Jun 2011

CURRENT FISCAL YEAR NEXT FISCAL YEAR

Q2 Reporting Q3 Reporting

Vote to Adopt Budget

CAFR Authorization

• f Mill Levy

Q1 Reporting

Jul

Budget Book

• School Funding

Summaries

• Department Funding

Summaries

• Budget Narrative

Proposed Budget

• Latest revenue

forecast

• Budget

assumptions

• Detailed Budgets

by Fund

• Other

Budget Recommendations

• Process overview
• State of the District

Funding

• Academic investment

priorities

• SBB formula factors
• Other

Amended Budget Present Amended Budget

Vote to Amend Budget

One month earlier than prior years DSIAC / Budget Taskforce DSIAC

• 19 -

Agenda

 Statutory and Regulatory

– Colorado and Federal Law, e.g. CRS 22-44-100 et al. – US DoE, CDE, and DPS, e.g. CDE’s Financial Policies and Procedures Handbook

 Denver Plan: Strategic Management of Financial Resources

– Strategy 1: Ensure Fiscal Stability – Strategy 2: Maximize Financial Resources – Strategy 3: Align Resources with Goals – Strategy 4: Increase Transparency

 Summary of FY2012-13 Proposed Budget  Budget Assumptions & Board Actions  Appendix

• 20 -

State of the State

November Forecast

• Anticipated statewide total program reduction of $89 million
• This would have reduced DPS’s per pupil funding to roughly $6,650
• Funding cuts would have resulted in a total reduction of $18 million to the District

Revised January Forecast

• Anticipated statewide program reduction of $48 million
• DPS’s per pupil funding will be reduced by 2%, or $140, to $6,733
• This cut will reduce per pupil funding to DPS by ~$10 million

January Forecast Impact to DPS

• Enrollment is forecasted to increase 2.1% or 1,500 students in FY2012-13
• However, state funding will only increase 0.2%, or $1.1 million, which is not sufficient to cover the

costs associated with new students or provide funding for new initiatives May Approved Budget Impact to DPS

• On May 9th, both houses approved the School Finance Bill for FY2012-13
• This amount would be sufficient to maintain the statewide average per pupil funding at the

same level as FY 2011-12

• DPS will experience a $5 per pupil cut which will be offset by enrollment growth

Outstanding Legislative Issues

• Potential for cuts to “Read to Achieve” program
• Legislative debate on retaining or eliminating tax exemptions
• Potential additional funding to the Colorado Preschool Program (CPP) as a part of the Literacy bill -

Could increase CPP funding to DPS by nearly $2 million

• DPS staff will continue to monitor the School Finance Bill until it is signed by the Governor
• 21 -

$7,672 $7,232 $6,873 $6,868 $6,400 $6,600 $6,800 $7,000 $7,200 $7,400 $7,600 $7,800 2009-10 2010-11 2011-12 2012-13

State Funding Cuts Impact to Per Pupil Funding: DPS

• 22 -

The State has decreased per pupil funding more than 10% since FY2009–10. Although the State has released multiple forecasts during the current fiscal year with dramatically different per pupil funding amounts, the March 2012 economic update shows a $5 cut per pupil for DPS

*2010-11 funding is prior to the federal adjustment of $21M. Funding would have been $6,941 without this adjustment

DPS Per Pupil Funding

Mar 2012 economic update

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

The impact of per pupil reductions on overall District funding during this time period, has been somewhat mitigated by enrollment increases. *

• 22 -

Key Budget Assumptions

• 23 -

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• FY2012-13 enrollment growth projected at 1.9% for total funded pupils of 76,438

(up from 75,005 in FY2011-12)

• Per Pupil revenue is currently projected to be down $5 from FY2011-12 at

$6,868

• With increases to enrollment, overall revenue is projected to increase

approximately $10M

• Charter schools are forecasted to receive 67% of the new pupils for a total

funded enrollment of 10,490

• Salaries and employee growth are currently forecasted to be flat except for new

teachers needed to serve the increase in enrollment

• 23 -

Overview of Federal Title I Funding

Carryover Allocation

Federal Funding

• Federal Funds are expected to continue to decline through reductions to Title II (12% - $525,000)

and III (5% - $100,000), though Title I and Title VI are expected to be flat

• ARRA grants are largely complete, but along with recently received Race to the Top funding, several

additional ARRA grants run for 5 years (such as i3) Impact on DPS Budgets

• The majority of ARRA funds were spent on infrastructure projects that do not result in a funding cliff
• Reductions in the formula grants are being addressed by reductions in centrally managed programs

and cuts in Title I per pupil funding

• New CDE definitions of “rapidly expanding charter schools” result in an increased Title I allocation

by nearly $675,000 for FY2012-13 $0 $10 $20 $30 $40 $50 $60 FY10 Actual FY11 Actual FY12 Budget FY13 Budget Title I Actual Expenses & Budgets ($ M) $52.0 $40.0 $41.8 $38.3

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• 24 -

DPS Maximizes Spending Directly in the Classroom

% of K12 Operating Budget for Central Overhead

• 25 -

15% 8% 12% 8% 11% 10% 7% 6% 4% 6% 8% 10% 12% 14% 16% 7% 6% 5% 5% 5% 0% 2% 4% 6% 8%

FY09 FY10 FY11 FY12 FY13

DPS continues to reduce centrally budgeted services and remains among comparative urban districts with the lowest percentage of central funding in order to maximize funding in our classrooms.

Source: Education Resource Strategies: FY10 Source: DPS

Comparison of DPS against other districts: FY10 DPS % of Budget

• n Central Overhead

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• 25 -

FY2012-13 Budget Expenditures by Cost Category

Expenditures by Category School 71% School Support 24% Central 5%

• Source: FY2012-13 Proposed Budget, K-12 (K = .5)

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

DPS FY 2012-13 Budget Summary Budgeted Revenues General Fund (School Finance Act & State Categorical) $ 7,271 Mill Levy Override 1,036 Per Pupil Revenue $ 8,307 Budgeted Expenditures

• I. School

School Direct $ 5,635 66% ProComp (Teacher Salary and Benefits) 431 5%

• II. School Support Services

Special Education/Student Serv. 634 7% Facilities, Utilities, Insurance 572 7% Academic Support 384 4% Transportation 266 3% Community Engagement, Adult Ed, Voc Ed, Other Ed 99 1% Other 168 2%

• III. Central

Central Support Services 396 5% Per Pupil Expenditures $ 8,585 100%

• 26 -

DPS Maximizes Spending Directly in the Classroom

• 27 -

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

A History of Site Based Budgeting Utilizing a Student Weighted Formula (SBB)

Final year for Small School Factor Central budget for Guest Teachers (substitutes) allocated directly to schools State lifts restrictions

• n instructional

funding – more flexibility for schools

FY2010-11

$10 million added to SBB

• Additional funding

for at-risk students

• Additional base

funding

• Performance

allocation added to formula to incentivize SPF performance Refinements implemented to streamline SBB formula Additional site-level control over Mild Moderate and Nurse/Mental Health Staffing

FY2011-12

ELL Weight added $400 per ELL Multiple Pathways Centers transition to a weighted student formula

FY2012-13 FY2007-08

DPS Rolls Out SBB District-wide District implements a hold-harmless allocation known as the RAM to SBB adjustment

FY2008-09

Pension refinancing increases dollars available via SBB. Supplemental allocations added for:

• Base Funding
• Free Lunch
• Gifted and

Talented

• At-Risk
• Additional

targeted funding for some underperforming schools RAM to SBB adjustment eliminated Small School Factor continues to ratchet down as planned Facilitator requirements “loosened” to allow for additional site- level discretion Some schools begin budgeting on actual salaries Some Federal ARRA funds allocated directly through SBB

FY2009-10

• 27 -

• 28 -

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

NEW SLIDE Distribution of Federal Funds

Grant ESEA* IDEA** Federal Allocation Amounts: All are Subject to Congressional Appropriations State Allocation Amounts Schools Allocation Amounts Other Considerations Title I: Academic Achievement in High Poverty Schools Y N Generated by District Census Poverty data Distributed after adjustments made for state reservations and hold harmless provisions Distributed to schools with F/R %'s greater than 66% on a $/F/R lunch student basis All federal grants have a variety of statutory requirements. This includes "equitable services" to private school students. Title II: Professional Development Y N Follow the Title I proportions Proportional amount aligned with Title I A portion allocated to schools on a $/pupil rate Title III: Getting ELL's into English Y N Generated by District Census ELL data Distributed based on ELL October counts Dollars held centrally except for charter schools Title VI: Support the Needs of Students with Disabilities N Y FY 99 allocations are the floor with additional funding based on Census data Generated by the number of students with disabilities reported on

• Dec. 1

Services and funds are centrally managed *Elementary and Secondary Education Act (otherwise known as NCLB) **Individuals with Disabilities Education Act

• 28 -

FY2012–13 Budget Plans Aligned to Budget Task Force Principles

Guiding Principle Budget Recommendations Direct more resources to schools

• Per pupil SBB allocation specifically to support English Language Learners (ELL)
• Additional ELL support through a targeted and intensive support model

Increase school autonomy and accountability

• Continued expansion of the Innovation menu of services
• Further rollout of LEAP implementation
• Capacity-building for principals to innovate and improve school designs

Increase our investment in leadership

• Grants focusing on Principal pipeline (Wallace Foundation & Dell Foundation)

Increase accountability of central administration

• Continued focus on employee performance management initiatives

Fund what works

• Develop and expand improvement models, such as support for extended learning models

Raise revenues together

• Continue to aggressively pursue outside funding to support District initiatives
• Examine the possibility of going to voters for a mill levy and bond in November 2012

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• 29 -

Increased Financial Transparency

 DPS Financial Transparency website highlights

– Budget Presentations – Comprehensive Annual Financial Report (CAFR) – Winner of both the GFOA and ASBO Certificate of Achievement for Excellence in Financial Reporting – Quarterly Financial Statements – Payment Review Database – Investments – Additional Information

 Community Planning Advisory Committee for 2012 Bond & Mill Levy Planning  Comprehensive Adopted Budget Book – Expected July 2012 to include school and department-level budget summaries

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• 30 -

2012 Community Planning Advisory Committee

An important part of ensuring DPS’s fiscal stability includes planning for a 2012 bond and mill levy. 72 members of the community are part of the advisory committee across four sub-committees

Bond: Facility Management

• Deferred maintenance
• Facility modernization &

sustainability

• Health, safety, &

security

Academic Programs / Mill Levy

• Early childhood

education

• Extended learning time
• Expanded academic

programs

• Curriculum support
• Recurring technology

investments

Bond: New Schools

• New facilities
• Expanded capacity at

existing facilities

• Property purchase
• Shared campuses

Bond: Technology

• Bond projects:
• Infrastructure
• Tech safety
• Educational

applications

• Operational efficiency

Fiscal Stability Maximize Resources Align Resources with Goals Increase Transparency

• 31 -

Agenda

 Statutory and Regulatory

– Colorado and Federal Law, e.g. CRS 22-44-100 et al. – US DoE, CDE, and DPS, e.g. CDE’s Financial Policies and Procedures Handbook

 Denver Plan: Strategic Management of Financial Resources

– Strategy 1: Ensure Fiscal Stability – Strategy 2: Maximize Financial Resources – Strategy 3: Align Resources with Goals – Strategy 4: Increase Transparency

 Summary of FY2012-13 Proposed Budget  Budget Assumptions & Board Actions  Appendix

• 32 -

Summary of FY2011-12 Projected and Estimated FY2012-13 Budgeted Revenues

General Fund Revenue ($ M) Revenue Forecast

Property Tax 42% MLO 8%

% of FY2012-13 GF Budget

• FY2012 -13 represents a preliminary view of the General Fund revenue forecast
• Projected state funds are based on the March economic update and recent economic updates and must be adopted by

the legislature as pat of the School Finance Act (introduced as HB12-1345)

• NOTE: MLO funds are not factored into the computation for PPR for purposes of the State’s funding of the school

finance act

State 43% Spec. Own. 4% Other 2%

Source FY2011-12 FY2012-13 % increase State Funding $254.20 $266.19 4.72% Property Taxes $260.54 $257.60 (1.13%) Mill Levy Override $48.61 $48.61 0.00% Specific Ownership $26.17 $26.96 3.00% Other General Fund $13.32 $13.29 (0.18%) Total $602.84 $612.65 1.63%

• 33 -

FY2012-13 Budget Recommendations: Use of Fund Balance

Budgeted use of fund balance in FY2012-13 maintains over $47M of unallocated reserves as of June 30, 2013 Recommended Allocations of Operating Reserves ($ M)

Restricted Assigned Unassigned Fund balance terminology aligned with GASB 54 pronouncement and proposed new DPS Fund Balance policy

$129 $18 $2 $14 $9 $6 $2 $2 $1 $75 $28 $47

$0 $20 $40 $60 $80 $100 $120 $140 FY12 Ending Balance Emergency Reserve Charter Tabor General Contingency COPs Unassigned Teachers School Consolidation Utilities and Fuel Risk Management Unallocated Reserves Budgeted FY13 Use FY13 Unallocated Reserves Emergency Reserve Utilities and Fuel

• 34 -

Agenda

 Statutory and Regulatory

– Colorado and Federal Law, e.g. CRS 22-44 – US DoE, CDE, and DPS, e.g. CDE’s Financial Policies and Procedures Handbook

 Denver Plan: Strategic Management of Financial Resources

– Strategy 1: Ensure Fiscal Stability – Strategy 2: Maximize Financial Resources – Strategy 3: Align Resources with Goals – Strategy 4: Increase Transparency

 Summary of FY2012-13 Proposed Budget  Budget Assumptions & Board Actions  Appendix

• 35 -

FY2012 – 13 Budget Assumptions

Budget Input Assumption Enrollment

• Funded Pupil Count – 76,433 (K=.5) per CDE forecast
• Total Projected Enrollment – 83,230 (ECE & K = 1.00)
• FRL 72.51% (including charters)
• ELL – 21,196 (including charters)
• CELA 1,2,3 – Students eligible for ELL per student weighting – 16,673

State Funding

• Absolute dollars - $10 million increase due to increased total enrollment
• Per pupil – Per the School Finance Act, anticipated $5 cut per pupil from FY2011-12 for

DPS while statewide average PPR is flat

• Source – the latest Governor submission – approval TBD by legislature

Pension Contributions

• Blended statutory rate projected to increase 0.9% for budget FY2012-13 including

increases of 0.4% for AED and 0.5% for SAED.

• With no compensation increases, this will cost the district $1.6M
• PERA Contribution Rates

 New Link Compensation Changes

• Salaries remain at FY2011-12 levels
• Average teacher salary declined by 1.9% as a result of retirements and new teacher hires

 Pursuant to CRS 22-44-105(2) and 22-44-107, 108, material herein are detailed assumptions and statements in order to validate anticipated revenues and proposed expenditures

• 36 -

FY2012 -13 Budget Assumptions

DPS Enrollment Trends

Type FY2010- 11 FY2011- 12 Student Growth % Growth FY2012-13 Projected Student Growth % Growth Alternative 1,217 1,630 413 34% 1,895 265 16% Charter 8,705 10,076 1,326 15% 11,521 1,445 14% Traditional 68,455 69,196 751 1% 69,814 618 1% Overall 78,377 80,902 2,490 3% 83,230 2,328 3%

Sources of Growth

Source #1: Significant growth in the NNE region (1,168). Almost a third of this growth was in Stapleton. DPS also has a number of new schools and schools still opening grades in the NNE. SW and FNE also saw growth rates above 3% Source #2: Charters accounted for over half of the enrollment growth (1,416) Source #3: The 24% enrollment growth in the alternative schools is due to new schools (DC-21 and Vista Academy) Region FY2010-11 FY2011-12 Growth % Growth FNE 11,765 12,211 446 3.8% NNE 22,431 23,599 1,168 5.2% NW 14,559 14,652 93 0.6% SE 9,551 9,628 77 0.8% SW 15,191 15,824 633 4.2% Total 73,497 75,914 2,417 3.3%

Note: Excludes ECE Hub Center

• 37 -

Note: Excludes ECE students

Board of Education Actions

 Proposed FY2012-13 budget presented at April 16th BoE work session  Within 10 days of the BoE work session, the District will publish a public notice stating that “the proposed budget is on file at the principal administrative offices of the school district; that the proposed budget is available for inspection during reasonable business hours; that any person paying school taxes in the district may file or register an objection thereto at any time prior to its adoption; and that the board of education of the school district will consider adoption of the proposed budget for the ensuing fiscal year on the date, time and place specified in the notice.”  Proposed FY2012-13 budget will be considered for approval at the May 17th BoE regular meeting  Board Resolutions included in Appendix C

• 38 -

Agenda

 Statutory and Regulatory

– Colorado and Federal Law, e.g. CRS 22-44-100 et al. – US DoE, CDE, and DPS, e.g. CDE’s Financial Actions Handbook

 Denver Plan: Strategic Management of Financial Resources

– Strategy 1: Ensure Fiscal Stability – Strategy 2: Maximize Financial Resources – Strategy 3: Align Resources with Goals – Strategy 4: Increase Transparency

 Summary of FY2012-13 Proposed Budget  Budget Assumptions & Board Actions  Appendix

• 39 -

Appendix Table of Contents

 Appendix A: SBB comparison  Appendix B: Individual Fund Summaries  Appendix C: FY2012-13 Budget Appropriations and Resolutions

• 40 -

Appendix A SBB Comparison

• 41 -

Appendix A: Proposed SBB factors and Comparison versus FY2011-12

Factor FY2011-12 FY2012-13 Notes

Base Per Pupil $3,931 for all schools K-12 (K=.5) $3,872 for all schools K-12 (K=.5) Adjusted due to decline in average teacher salary, no change in purchasing power for the schools Instructional Dollars Included in Base No change Guest Teachers (Substitutes) $52 ECE-12 (@ 1.00) No change Were budgeted centrally until FY2010-11, now allocated to schools Supplemental Base for Center Programs $ Per Center Program per K-12 (K=.5) ES - $12 K8 - $12 MS - $13 6-12 - $13 HS/Alt - $11 No change Until FY2011-12 this allocation was included as part of PSN staffing allocation (below) Student Based ELL Weight None $400 per CELA 1, 2, 3 Student Funding in addition to allocations mandated by the court order PSN (Student Service Days) Staffing Allocation None None As of FY2011-12 - No specific PSN staffing allocation $106 - $119 included in Base $52 - $57 in FRL Supp Funds $11 - $13 for Center Programs Mild Moderate Staffing Allocation None None As of FY2011-12 - No specific MM staffing allocation FRL is a standalone allocation Non-FRL students funded in Base

• 42 -

Appendix A: Proposed SBB factors and Comparison versus FY2011-12

Factor FY2011-12 FY2012-13 Notes

Free and Reduced Lunch Supplemental Funds $461 for Elementary $496 for Secondary No change As of FY2011-12 allocated to free and reduced lunch students and K =1.0 Gifted & Talented Per Pupil $120 No change Per identified GT (gr. 1-8) in addition to .25 FTE allocation Targeted Interventions $100,000-$250,000 SPF "Orange" and "Red" schools No change Performance Allocation $35 per student – SPF Green + $65 per student - SPF Blue $95 per – growth to Orange $100 per – growth to Yellow $105 per – growth to Green $115 per – growth to Blue No change Established in FY2011-12 Extra Allocations (IB, Montessori, Arts) Supplemental funding provided through class size relief allocations No change Small School Factor Supplemental funding provided through class size relief allocations No change

• Additional SBB factor detail can be found in the FY2012-13 School Budget Guidance Manual, pages 40-53

+ See slide 3 for detail on increased funding for Green Schools

• 43 -

Appendix B Individual Fund Summaries

• 44 -

Description of Funds

 General Fund 10 - The general fund is the general operating fund of the School District. It is used to account for all financial resources except those required to be accounted for in other funds. It includes the following sub funds:

– 1998 Mill Levy Override Fund 12 – November 1998 voter-approved mill levy override for student literacy, computers in schools and deferred building maintenance – 2003 Mill Levy Override Fund 16 - November 2003 voter-approved mill levy override for arts/music teachers in all elementary schools, textbooks, repairs and maintenance, all-day kindergarten and early education, improving high school graduation rates, and improving academic achievement in under-performing schools – General Projects Fund 13 - per GASB 54, this fund was created to distinguish projects based on funding sources. Funds that are constrained by the School District’s intent to be used for specific purposes, but are neither restricted nor committed and monies which have not been restricted, committed or assigned to a specific purpose

• One of the key factors in deciding whether to assign fund 13 determining projects which are internally funded or have

unrestricted funding streams. Examples:

– Miscellaneous donations given to schools by donors without restriction as to use of the funds. – Community Engagement funds are set aside by the District for a particular purpose but are not specifically restricted.

– Colorado Preschool Program Fund 19 - Colorado General Assembly initiative to prepare four and five year old children with specific at-risk factors in need of language development

• 45 -

Description of Funds (continued)

 Government Designated Purpose Grant Funds (GDPG) - The GDPG is used to account for financial resources received from local, state, and federal grants. It includes the following sub funds:

– Emily Griffith Technical College (EGTC) State GDPG Fund 24 - State funding from Colorado Department of Higher Education (CDHE) and student paid tuition and fees to support the operations of Emily Griffith Technical College in providing approved post-secondary vocational programs – State and Local GDPG Fund 25 - State categorical funding received to support students through initiatives including English Language Proficiency Act (ELPA) and Read to Achieve (RTA) – Federal GDPG Funds 26, 27, 28 - Federal categorical funding received to support students through programs including Title I, Teacher Quality, English Language Acquisition and IDEA. Each fund denotes a specific rolling fiscal year per fund accounting

 Pupil Activity Fund 23 – The pupil activity special revenue fund accounts for the revenue and expenditures of sponsoring athletic events at middle and high schools  Special Revenue Fund 29 – The special revenue fund is used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt services or capital projects

• One of the key factors in deciding whether to assign fund 29 is determining projects which have external funding

sources with specific spending and reporting requirements. Examples:

– The Wallace Foundation is externally funded and has specific reporting requirements and spending restrictions that align with its initiatives of defining framework for principal effectiveness, improving principal recruitment, selection, and training,

• verhauling principal placement strategy, and revising principal evaluation and professional development.

– The Walton Family Foundation is externally funded and has specific reporting requirements and spending restrictions that align with its initiatives of school reform, transitioning out low performing schools, assisting in planning and start up of new innovation schools, and building community support to replace low-performing schools.

• 46 -

Description of Funds (continued)

 Bond Redemption Fund 31 (Debt Service Fund) - The bond redemption fund (debt service fund) accounts for and reports financial resources that are restricted or committed for the payment of principal and interest on long-term general obligation debt of the School District as a result of the issuance of general obligation bonds  Capital Projects Building Funds 41, 45, 46, 47, 48 – The capital projects building fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure of capital outlays, including the acquisition or construction of capital facilities and other capital assets  Capital Reserve Fund 43 – The capital reserve fund is used to accumulate resources, primarily general fund support, for the acquisition, renovation and maintenance of capital assets as required by state statute  Food Services Fund 51, 52, 53 – The food services fund accounts for the revenue and expenses related to providing breakfasts and lunches to School District students and employees  Warehouse/Reproduction Internal Service Fund 61 - The Warehouse/Reproduction fund accounts for the revenue and expenses associated with central copying services, office supplies, postage and rental of equipment purchased by schools and departments  Self-Insurance Internal Service Fund 64 (Risk Fund) - The self insurance fund covering the district and its employees; it contains property and liability insurance, worker's comp premiums and claims within deductibles, and risk management services purchased by other district funds  Department of Technology Service (DoTS) Bureau Internal Service Fund 66 - The DoTS fund accounts for the technical services and support provided to schools and departments

• 47 -

Description of Funds (continued)

 Private Purpose (Trust) Fund 71 - The private purpose fund is not for the benefit of DPS; the beneficiaries are individuals or other organizations (COBRA, retiree health and life insurance trusts, DCTA & Paraprofessionals education trusts)  Special Revenue ProComp Trust Fund 75 – The procomp special revenue fund is used to account for the proceeds of the voter-approved taxes from the 2005 Mill Levy Override. Its investments and expenditures are for the professional compensation system for teachers  Permanent Government Fund 79 – The permanent government fund is used to account for and report resources that are restricted to the extent that only earnings and not principal may be used for purposes that support the School District’s programs  Student Activity Fund - The student activity fund contains school sponsored activities including collections and/or donations. Activities include student fines, school stores, courtesy funds, book clubs, excursion charges, fundraisers, organization dues, etc.

• 48 -

General Funds 10, 12, 16 and 19

 Beginning Balance

– FY2012-13 has a planned decrease of $18.3M due to spend down of grant funding ($3M) and a use of fund balance in FY2011-12 associated with declining state per pupil funding

 Revenues

– Planned net revenue increase of $7.9M from fiscal year 2011-12 – Funded pupil count year over year increase of 1,434 – School Finance Formula reduction of $5 per funded pupil – Based on updated FY2011-12 state Forecasts, FY2012-13 will see a Local Support reduction of $2.9M due to estimated 1% decline in assessed value – State equalization expected to increase $11.4M over FY2011-12 projections to offset loss of local support in FY2012-13

 Use of Fund Balance

– Budgeted use of fund balance of $28M will result in ending fund balance of $102M (excluding fund 13)

 Fund 13 not included in these financials

– Fund 13 represents projects that were historically budgeted in Special Revenue but were required to be moved to the General Fund per GASB 54

• 49 -

FY 11-12 Amended Budget FY 12-13 Proposed Budget General Operating Fund 10 & 19 1998 Mill Levy Override Fund 12 2003 Mill Levy Override Fund 16 FY 12-13 Adpoted Budget (Exl. Fund 13) $ Variance Increase/ (Decrease) % Variance Increase/ (Decrease) General Projects Fund 13 FY 12-13 Adopted Budget Revenues Beginning Balance 156,334,573 138,028,407 102,170,587 7,641,900 19,654,065 129,466,552 (8,561,855)

• 6.20%

8,561,855 138,028,407 Local Support Property Taxes 296,244,810 306,208,805 269,578,805 16,830,000 19,800,000 306,208,805

• 0.00%
• 306,208,805

Specific Ownership Taxes 26,172,343 26,957,513 26,957,513

• 26,957,513
• 0.00%
• 26,957,513

Other Local Support 15,154,738 11,563,002 5,311,574

• 5,311,574

(6,251,428)

• 54.06%

6,251,428 11,563,002 State Support State Equalization 246,795,280 247,089,782 247,089,782

• 247,089,782
• 0.00%
• 247,089,782

State Categorical 18,548,538 19,104,994 19,104,994

• 19,104,994
• 0.00%
• 19,104,994

Charter School Capital Construction 734,111 600,000 600,000

• 600,000
• 0.00%
• 600,000

Federal Support Prior Year Federal Revenue

• 0.00%
• ROTC and Build America Subsidy

7,381,578 7,381,578 7,381,578

• 7,381,578
• 0.00%
• 7,381,578

Other Federal Support

• 0.00%
• Other Support

Other Miscellaneous

• 0.00%
• Total Current Year Revenues

611,031,398 618,905,674 576,024,246 16,830,000 19,800,000 612,654,246 (6,251,428)

• 1.01%

6,251,428 618,905,674 Total Available Resources 767,365,971 756,934,081 678,194,833 24,471,900 39,454,065 742,120,798 (14,813,283)

• 1.96%

14,813,283 756,934,081 Expenditures Employee Salaries 373,190,681 368,427,368 337,476,275 9,770,374 9,056,422 356,303,071 (12,124,297)

• 3.29%

12,124,297 368,427,368 Employee Benefits 61,117,609 43,387,791 35,331,530 2,604,048 2,375,447 40,311,025 (3,076,766)

• 7.09%

3,076,766 43,387,791 Purchased Services 31,879,914 36,925,396 33,422,873 649,070 1,352,485 35,424,428 (1,500,968)

• 4.06%

1,500,968 36,925,396 Charter Schools 57,688,262 66,010,538 63,529,156 1,869,250 1,578,791 66,977,197 966,659 1.46%

• 66,977,197

Supplies & Materials 51,484,088 37,120,872 28,362,693 3,022,157 4,608,003 35,992,853 (1,128,019)

• 3.04%

1,128,019 37,120,872 Property 7,965,692 5,772,650 1,670,189 673,886 460,784 2,804,859 (2,967,791)

• 51.41%

2,967,791 5,772,650 Other Expenses 3,717,084 907,101 742,802 3,260 143,839 889,901 (17,200)

• 1.90%

17,200 907,101 Debt Service Interest & Fees 54,985,284 52,851,544 52,851,544

• 52,851,544
• 0.00%
• 52,851,544

Debt Service Principal 3,985,000 5,495,000 5,495,000

• 5,495,000
• 0.00%
• 5,495,000

Site Assigned Reserves 6,067,362 5,807,455 2,517,331 35,487 274,003 2,826,821 (2,980,634)

• 51.32%

2,013,975 4,840,796 Total Current Year Expenditures 652,080,976 622,705,715 561,399,393 18,627,532 19,849,774 599,876,699 (22,829,016)

• 3.67%

22,829,016 622,705,715 Operating Reserves CDE Audit 2,400,000

• 0.00%
• School Location/Relocation Support

3,453,307 561,549 561,549

• 561,549
• 0.00%
• 561,549

School Carry Forward

• 7,000,000

7,000,000

• 7,000,000
• 0.00%
• 7,000,000

Unassigned Teachers 4,749,387 5,224,640 5,224,640

• 5,224,640
• 0.00%
• 5,224,640

Total Current Year Operating Reserves 10,602,694 12,786,189 12,786,189

• 12,786,189
• 0.00%
• 12,786,189

Other Resources Interfund Transfers 36,454,262 27,978,309 24,879,960

• 2,948,349

27,828,309 (150,000)

• 0.54%

150,000 27,978,309 Transfer In From Other Funds (9,611,417) (8,315,733) (150,000)

• (150,000)

8,165,733

• 98.20%

(8,165,733) (8,315,733) Total Current Operating Budget & Other Resources 689,526,515 655,154,480 598,915,542 18,627,532 22,798,123 640,341,197 (14,813,283)

• 2.26%

14,813,283 655,154,480 Appropriated Reserves - Restricted District Emergency Reserve 18,038,993 18,379,627 17,468,270 504,900 594,000 18,567,170 187,543 1.02%

• 18,567,170

Charter TABOR Reserve 1,930,151 1,930,151 1,930,151

• 1,930,151
• 0.00%
• 1,930,151

Appropriated Reserves - Assigned General Contingency 3,208,180 14,000,000 13,812,457

• 13,812,457

(187,543)

• 1.34%
• 13,812,457

Certificate of Participation 9,000,000 9,000,000 9,000,000

• 9,000,000
• 0.00%
• 9,000,000

Utilities 1,000,000 2,000,000 2,000,000

• 2,000,000
• 0.00%
• 2,000,000

School Location/Relocation Support

• 2,000,000

2,000,000

• 2,000,000
• 0.00%
• 2,000,000

Unassigned Teachers

• 6,000,000

6,000,000

• 6,000,000
• 0.00%
• 6,000,000

Risk Fund Reserve 1,000,000 1,000,000 1,000,000

• 1,000,000
• 0.00%
• 1,000,000

Total Appropriations 723,703,839 709,464,258 652,126,420 19,132,432 23,392,123 694,650,975 (14,813,283)

• 2.09%

14,813,283 709,464,258 Unappropriated Reserves - Unassigned Other Reserves 43,662,132 47,469,823 26,068,413 5,339,468 16,061,942 47,469,823

• 0.00%
• 47,469,823

General Fund Recommended Budget By Fund

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Available Resources Beginning Balance 156,334,573 (18,306,166) 138,028,407

• 138,028,407

Local Support Property Taxes 296,244,810 9,963,995 306,208,805

• 306,208,805

Specific Ownership Taxes 26,172,343 785,170 26,957,513

• 26,957,513

Other Local Support 15,154,738 (3,591,736) 11,563,002

• 11,563,002

State Support State Equalization 246,795,280 294,502 247,089,782

• 247,089,782

State Categorical 18,548,538 556,456 19,104,994

• 19,104,994

Charter School Capital Construction 734,111 (134,111) 600,000

• 600,000

Federal Support Prior Year Federal Revenue

• ROTC and Build America Subsidy

7,381,578

• 7,381,578
• 7,381,578

Other Federal Support

• Other Support

Other Miscellaneous

• Total Current Resources

611,031,398 7,874,276 618,905,674

• 618,905,674

Total Available Resources 767,365,971 (10,431,890) 756,934,081

• 756,934,081

Expenditures Employee Salaries 373,190,681 (4,763,313) 368,427,368

• 368,427,368

Employee Benefits 61,117,609 (17,729,818) 43,387,791

• 43,387,791

Purchased Services 31,879,914 5,045,482 36,925,396

• 36,925,396

Charter Schools 57,688,262 8,322,276 66,010,538 966,659 66,977,197 Supplies & Materials 51,484,088 (14,363,216) 37,120,872

• 37,120,872

Property 7,965,692 (2,193,042) 5,772,650

• 5,772,650

` 3,717,084 (2,809,983) 907,101

• 907,101

Debt Service Interest & Fees 54,985,284 (2,133,740) 52,851,544

• 52,851,544

Debt Service Principal 3,985,000 1,510,000 5,495,000

• 5,495,000

Site Assigned Reserves 6,067,362 (259,907) 5,807,455 (966,659) 4,840,796 Total Current Year Expenditures 652,080,976 (29,375,261) 622,705,715

• 622,705,715

Operating Reserves CDE Audit 2,400,000 (2,400,000)

• School Location/Relocation Support

3,453,307 (2,891,758) 561,549

• 561,549

School Carry Forward

• 7,000,000

7,000,000

• 7,000,000

Unassigned Teachers 4,749,387 475,253 5,224,640

• 5,224,640

Total Current Year Operating Reserves 10,602,694 2,183,495 12,786,189

• 12,786,189

Other Resources Interfund Transfers 36,454,262 (8,475,953) 27,978,309

• 27,978,309

Transfer In From Other Funds (9,611,417) 1,295,684 (8,315,733)

• (8,315,733)

Total Current Operating Budget & Other Resources 689,526,515 (34,372,035) 655,154,480

• 655,154,480

Appropriated Reserves - Restricted District Emergency Reserve 18,038,993 340,634 18,379,627 187,543 18,567,170 Charter TABOR Reserve 1,930,151

• 1,930,151
• 1,930,151

Appropriated Reserves - Assigned General Contingency 3,208,180 10,791,820 14,000,000 (187,543) 13,812,457 Certificate of Participation 9,000,000

• 9,000,000
• 9,000,000

Utilities 1,000,000 1,000,000 2,000,000

• 2,000,000

School Location/Relocation Support

• 2,000,000

2,000,000

• 2,000,000

Unassigned Teachers

• 6,000,000

6,000,000

• 6,000,000

Risk Fund Reserve 1,000,000

• 1,000,000
• 1,000,000

Total Appropriations 723,703,839 (14,239,581) 709,464,258

• 709,464,258

Unappropriated Reserves - Unassigned Other Reserves 43,662,132 3,807,691 47,469,823

• 47,469,823

Note: This General Fund Summary includes Fund 13

General Fund Summary

3

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Available Resources Beginning Balance 11,675,312 (3,113,457) 8,561,855

• 8,561,855

Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

9,953,894 (3,702,466) 6,251,428

• 6,251,428

State Support State Equalization

• State Categorical
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• ROTC and Build America Subsidy
• Other Federal Support
• Other Support

Other Miscellaneous

• Total Current Resources

9,953,894 (3,702,466) 6,251,428

• 6,251,428

Total Available Resources 21,629,206 (6,815,923) 14,813,283

• 14,813,283

Expenditures Employee Salaries 14,117,524 (1,993,227) 12,124,297

• 12,124,297

Employee Benefits 3,872,522 (795,756) 3,076,766

• 3,076,766

Purchased Services 2,869,754 (1,368,786) 1,500,968

• 1,500,968

Charter Schools

• Supplies & Materials

3,065,426 (1,937,407) 1,128,019

• 1,128,019

Property 3,832,289 (864,498) 2,967,791

• 2,967,791

Other Expenses 264,902 (247,702) 17,200

• 17,200

Debt Service Interest & Fees

• Debt Service Principal
• Site Assigned Reserves

2,883,035 (869,060) 2,013,975

• 2,013,975

Total Current Year Expenditures 30,905,452 (8,076,436) 22,829,016

• 22,829,016

Operating Reserves CDE Audit

• School Location/Relocation Support
• School Carry Forward
• Unassigned Teachers
• Total Current Year Operating Reserves
• Other Resources

Interfund Transfers 215,171 (65,171) 150,000

• 150,000

Transfer In From Other Funds (9,491,417) 1,325,684 (8,165,733)

• (8,165,733)

Total Current Operating Budget & Other Resources 21,629,206 (6,815,923) 14,813,283

• 14,813,283

Appropriated Reserves - Restricted District Emergency Reserve

• Charter TABOR Reserve
• Appropriated Reserves - Assigned

General Contingency

• Certificate of Participation
• Utilities
• School Location/Relocation Support
• Unassigned Teachers
• Total Appropriations

21,629,206 (6,815,923) 14,813,283

• 14,813,283

Unappropriated Reserves - Unassigned Other Reserves

• Note: Fund 13 was bifurcated from Fund 29, per GASB 54

General Projects Fund 13

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures

SUPERINTENDENT Office of the Superintendent 5.00 790,935 ‐ (1,463) 5.00 789,472 Fund for Improving Student Achievement ‐ 91,252 ‐ ‐ ‐ 91,252 Community Relations 5.11 719,944 0.89 (1,068) 6.00 718,876 Office of Parent Engagement 14.46 1,184,818 0.44 (2,109) 14.90 1,182,709 Total Superintendent 24.57 2,786,949 1.33 (4,640) 25.90 2,782,309 GENERAL COUNSEL Legal Services 6.15 964,774 (0.02) (1,460) 6.13 963,314 Total General Counsel 6.15 964,774 (0.02) (1,460) 6.13 963,314 COMMUNICATIONS/MEDIA RELATIONS OFFICER Communications Office 6.19 779,018 1.00 39,900 7.19 818,918 Multilingual Outreach 8.00 596,849 (2.00) (802) 6.00 596,047 Total Communications/Media Relations Officer 14.19 1,375,867 (1.00) 39,098 13.19 1,414,965 BOARD OF EDUCATION Office of the Board of Education 1.00 192,319 (0.12) 74,849 0.88 267,168 Student Board of Education ‐ 18,000 ‐ ‐ ‐ 18,000 Biennial November Election Fees ‐ 330,000 ‐ ‐ ‐ 330,000 Internal Audit 3.00 369,460 ‐ (545) 3.00 368,915 Total Board of Education 4.00 909,779 (0.12) 74,304 3.88 984,083 INSTRUCTIONAL Instructional Support Teams 14.04 2,236,228 0.10 471,173 14.14 2,707,401 Post Secondary Readiness 15.50 3,135,414 4.00 2,501,691 19.50 5,637,105 Office of School Turnaround 6.50 646,619 11.50 1,129,239 18.00 1,775,858 Principal Development ‐ ‐ 1.00 140,000 1.00 140,000 Interdisciplinary Curriculum 1.00 171,826 0.25 119,733 1.25 291,559 Balarat Outdoor Education Center 8.00 642,275 ‐ (1,313) 8.00 640,962 Career & Technology Education ‐ High Schools 2.00 537,744 0.50 230,077 2.50 767,821 Military Science Education ‐ central support and high school programs 29.00 2,969,569 2.00 ‐ 31.00 2,969,569 Total Instructional 76.04 10,339,675 19.35 4,590,600 95.39 14,930,275 STUDENT SERVICES Denver Kids, Inc. 4.75 414,556 0.50 (64) 5.25 414,492 Student Services Charter Schools 48.30 3,746,704 2.30 216,825 50.60 3,963,529 Early Childhood Education Special Education 14.00 1,807,539 9.70 910,641 23.70 2,718,180 Severe Disabilities 206.10 24,718,393 (22.35) (908,644) 183.75 23,809,749 Psychological Services 26.30 2,486,821 1.70 (3,187) 28.00 2,483,634 School Nurse Services 14.65 1,007,395 0.60 (1,904) 15.25 1,005,491 Pupil Records 5.50 299,073 ‐ (643) 5.50 298,430 Total Student Services 319.60 34,480,481 (7.55) 213,024 312.05 34,693,505 CHIEF ACADEMIC OFFICER Office of the Chief Academic Officer 4.00 683,440 ‐ 2,457,989 4.00 3,141,429 Textbook Acquisition ‐ 94,986 ‐ 7,885 ‐ 102,871 Transfer to Special Revenue Fund (ECE/Kinder Programs) ‐ 5,418,756 ‐ (1,656,022) ‐ 3,762,734 Instructional Support ‐ other school support ‐ 773,880 ‐ 5,768 ‐ 779,648 Instructional Equipment Repairs ‐ 32,986 ‐ ‐ ‐ 32,986 Allied Services 1.00 202,496 ‐ (337) 1.00 202,159 City Wide Marching Band ‐ 91,972 ‐ (41) ‐ 91,931 City Wide Music Groups 1.00 140,950 ‐ 19,083 1.00 160,033 Assessment & Research 14.35 1,605,165 5.60 648,851 19.95 2,254,016 Humanities Curriculum 9.50 1,453,264 1.00 9,850 10.50 1,463,114 Math/Science Curriculum 6.00 803,632 0.50 594,018 6.50 1,397,650 English Language Acquisition Services ‐ central support and district wide staff development 16.00 2,178,073 (2.50) (71,979) 13.50 2,106,094 Gifted & Talented ‐ central support and itinerant teachers 17.03 1,651,180 4.45 41,041 21.48 1,692,221 Educational Technology 5.00 553,034 (0.70) 206,038 4.30 759,072 Community Partnerships/Extended Learning 1.45 535,821 (0.31) (388,257) 1.14 147,564 Teacher Learning and Leadership 1.00 263,465 3.00 83,688 4.00 347,153 Teacher Performance Assessment 43.85 3,904,664 2.05 (8,341) 45.90 3,896,323 Total Chief Academic Officer 120.18 20,387,764 13.09 1,949,234 133.27 22,336,998

FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

CHIEF OPERATING OFFICER Office of the Chief Operating Officer 2.50 385,913 (0.50) (75,783) 2.00 310,130 Transfer to Pupil Activity Fund (high school athletic program support) ‐ 1,966,477 ‐ 19,845 ‐ 1,986,322 Transfer to Special Revenue Fund (middle/high school athletic program support) ‐ 609,755 ‐ ‐ ‐ 609,755 Transfer to Special Revenue Fund (Marquez Matching Grant) ‐ 1,600,000 ‐ 600,000 ‐ 2,200,000 District wide Special Projects ‐ 297,662 ‐ ‐ ‐ 297,662 Disbursing Office 3.00 293,223 ‐ (489) 3.00 292,734 Athletics Office 4.00 754,996 1.00 10,610 5.00 765,606 Grants Resource Center 0.80 122,651 (0.55) (160) 0.25 122,491 Planning & Analysis Department 4.20 428,260 1.80 54,186 6.00 482,446 Office of School Reform and Innovation 10.25 1,206,993 0.75 (2,437) 11.00 1,204,556 Strategy Program Office 3.00 653,361 ‐ 29,235 3.00 682,596 Data Quality Management Team 4.10 438,793 0.90 (935) 5.00 437,858 District wide Student Assignment 5.00 884,528 4.00 62,809 9.00 947,337 Strategic Planning 0.60 34,188 (0.60) (34,188) ‐ ‐ Shared Service 3.90 410,840 2.10 (30,467) 6.00 380,373 Financial Services/Budget Office 19.00 1,537,767 0.10 217,428 19.10 1,755,195 General Accounting Office 9.50 689,928 ‐ 277,874 9.50 967,802 Risk Management (4.51) ‐ 4.51 ‐ ‐ ‐ Accounts Payable Office 8.00 474,398 ‐ (1,004) 8.00 473,394 Personnel Services Office 47.75 5,439,068 13.63 843,032 61.38 6,282,100 Pro Comp System Development/Training 3.00 327,240 0.25 (107) 3.25 327,133 Employee Benefits Office 6.50 679,849 (2.50) (151,017) 4.00 528,832 Teacher Effectiveness 5.00 1,569,526 (1.00) (1,035,504) 4.00 534,022 Payroll Office 15.00 1,052,165 ‐ (2,176) 15.00 1,049,989 Facility Services 6.45 603,386 0.35 (36,111) 6.80 567,275 Facility Maintenance 42.30 2,981,270 (6.30) (524,250) 36.00 2,457,020 Facility Operations ‐ district wide support 21.00 1,164,130 1.00 59,381 22.00 1,223,511 Facility Operations ‐ school support 412.00 20,753,070 7.40 (637,147) 419.40 20,115,923 Facility Operations ‐ district wide utilities ‐ 16,160,942 ‐ (745,289) ‐ 15,415,653 Facility Construction Services 1.85 153,538 (0.25) (40,451) 1.60 113,087 Transfer to Capital Reserve Fund ‐ 21,346,725 ‐ (10,000,000) ‐ 11,346,725 Pupil Transportation 185.00 16,886,629 (1.00) 883,235 184.00 17,769,864 Pupil Transportation ‐ fuel ‐ 1,600,000 ‐ 400,000 ‐ 2,000,000 Safety & Security ‐ district wide staffing and central support 43.00 5,197,584 ‐ (60,022) 43.00 5,137,562 Fixed Assets ‐ 11,857 ‐ (356) ‐ 11,501 Purchasing 8.52 647,941 (1.07) (1,391) 7.45 646,550 IKON Services ‐ (10,000) ‐ ‐ ‐ (10,000) District Wide Copier Lease ‐ (100,000) ‐ ‐ ‐ (100,000) Warehouse (central receiving/delivery and mail delivery) 1.86 127,438 (0.20) (4,028) 1.66 123,410 Dept of Technology Services ‐ CIO/CTO 4.00 418,680 ‐ (886) 4.00 417,794 Dept of Technology Services ‐ E‐Rate telecom expense reimbursements ‐ (2,031,000) ‐ 731,000 ‐ (1,300,000) Dept of Technology Services ‐ District Wide ‐ 35,900 ‐ ‐ ‐ 35,900 Information Systems Technology 36.00 3,750,234 ‐ (9,126) 36.00 3,741,108 Dept of Technology Services ‐ District Wide telephone/fax services ‐ 1,502,036 ‐ (70,560) ‐ 1,431,476 Dept of Technology Services ‐ Applications 26.00 3,355,923 (1.00) (201,745) 25.00 3,154,178 Dept of Technology Services ‐ Customer Relations Management 31.00 2,935,596 2.00 (6,572) 33.00 2,929,024 Dept of Technology Services ‐ Production Management 2.00 349,748 1.00 (850) 3.00 348,898 Total Chief Operating Officer 971.57 119,699,208 25.82 (9,484,416) 997.39 110,214,792 Total Elementary Schools 1,833.25 140,867,387 12.79 (4,790,019) 1,846.04 136,077,368 Allocated General Fund SBB 1,729.56 131,072,194 91.19 2,943,096 1,820.75 134,015,290 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 2,623,351 ‐ (2,349,570) ‐ 273,781 Allocated Class Size Relief Teacher funding ES 63.19 4,457,728 (37.90) (2,669,431) 25.29 1,788,297 Allocated Unassigned Teacher funding ES 40.50 2,714,114 (40.50) (2,714,114) ‐ ‐ Total Grades K‐8 Schools 598.97 46,651,798 (2.50) (2,601,832) 596.47 44,049,966 Allocated General Fund SBB 570.52 42,642,969 16.50 318,996 587.02 42,961,965 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 1,662,587 ‐ (1,252,666) ‐ 409,921 Allocated Class Size Relief Teacher funding K‐8 23.45 2,002,122 (14.00) (1,324,042) 9.45 678,080 Allocated Unassigned Teacher funding K‐8 5.00 344,120 (5.00) (344,120) ‐ ‐ Total Middle Schools 473.52 34,997,169 (26.43) (3,207,311) 447.09 31,789,858 SCHOOLS ‐ Allocation of carry forward balances, fall adjustments, and additional class‐size

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

Allocated General Fund SBB 438.52 32,110,955 (14.64) (1,866,385) 423.88 30,244,570 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 312,402 ‐ (335,163) ‐ (22,761) Allocated Class Size Relief Teacher funding MS 25.25 1,918,874 (2.04) (350,825) 23.21 1,568,049 Allocated Unassigned Teacher funding MS 9.75 654,938 (9.75) (654,938) ‐ ‐ Total Grades 6‐12 Schools 288.28 21,598,100 71.18 3,065,625 359.46 24,663,725 Allocated General Fund SBB 275.58 18,673,367 78.88 4,603,484 354.46 23,276,851 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 2,057,703 ‐ (1,017,369) ‐ 1,040,334 Allocated Class Size Relief Teacher funding 6‐12 6.20 434,104 (1.20) (87,564) 5.00 346,540 Allocated Unassigned Teacher funding 6‐12 6.50 432,926 (6.50) (432,926) ‐ ‐ Total High Schools 794.92 60,205,248 (22.61) (4,036,986) 772.31 56,168,262 Allocated General Fund SBB 772.17 56,446,799 (5.86) (1,867,630) 766.31 54,579,169 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 2,004,970 ‐ (1,086,303) ‐ 918,667 Allocated Class Size Relief Teacher funding HS 15.00 1,215,098 (9.00) (544,672) 6.00 670,426 Allocated Unassigned Teacher funding HS 7.75 538,381 (7.75) (538,381) ‐ ‐ Total Alternative Schools 201.72 17,223,349 5.14 (818,908) 206.86 16,404,441 Allocated General Fund SBB 201.72 15,180,073 5.14 472,652 206.86 15,652,725 Non‐SBB School Funding (reserves, carry forward, departmental transfers, etc.) ‐ 2,043,276 ‐ (1,291,560) ‐ 751,716 Allocated Class Size Relief Teacher funding Alt ‐ ‐ ‐ ‐ ‐ ‐ Total Allocated General Fund SBB 3,988.07 296,126,357 171.21 4,604,213 4,159.28 300,730,570 Total Non‐SBB School Funding (Reserves, Carry Forward, Departmental Transfers, Etc.) ‐ 10,704,289 ‐ (7,332,631) ‐ 3,371,658 Total Allocated Class Size Relief Teacher Funding 133.09 10,027,926 (64.14) (4,976,534) 68.95 5,051,392 Total Allocated Unassigned Teacher Funding 69.50 4,684,479 (69.50) (4,684,479) ‐ ‐ Unallocated Unassigned Teacher Funding ‐ ‐ ‐ 5,224,640 ‐ 5,224,640 Unallocated Teacher Class Size Relief Funding 10.34 460,753 (88.29) 358,367 (77.95) 819,120 CHARTER/CONTRACT SCHOOLS Academy of Urban Learning ‐ 562,514 ‐ 208,856 ‐ 771,370 Cesar Chavez Academy Denver ‐ 2,377,910 ‐ 88,008 ‐ 2,465,918 Colorado High School ‐ 978,848 ‐ (136,748) ‐ 842,100 Community Challenge ‐ 1,122,740 ‐ 33,139 ‐ 1,155,879 Denver Language School ‐ 1,136,376 ‐ 601,310 ‐ 1,737,686 Denver School of Science & Technology ‐ 7,460,978 ‐ 1,807,858 ‐ 9,268,836 DSST @ Cole MS NNE ‐ 788,306 ‐ 756,852 ‐ 1,545,158 DSST University Heights MS ‐ ‐ ‐ 790,080 ‐ 790,080 Manny Martinez MS ‐ 603,667 ‐ (603,667) ‐ ‐ Girls Athletic Leadership School ‐ 1,007,407 ‐ (38,568) ‐ 968,839 Highline Academy ‐ 2,702,354 ‐ 18,108 ‐ 2,720,462 Justice High School Denver ‐ 677,745 ‐ (76,568) ‐ 601,177 KIPP @ Noel ‐ 751,398 ‐ 355,253 ‐ 1,106,651 KIPP ‐ Sunshine Peak Academy ‐ 2,057,899 ‐ (11,899) ‐ 2,046,000 KIPP Denver Collegiate High School ‐ 1,529,120 ‐ 535,635 ‐ 2,064,755 Life Skills Center of Denver ‐ 1,310,985 ‐ (1,310,985) ‐ ‐ Monarch Montessori ‐ ‐ ‐ 809,779 ‐ 809,779 Northeast Academy ‐ 2,327,689 ‐ (1,190,226) ‐ 1,137,463 Odyssey ‐ 1,060,565 ‐ (3,649) ‐ 1,056,916 Omar D. Blair ‐ 3,730,884 ‐ (108,896) ‐ 3,621,988 Pioneer ‐ 1,524,135 ‐ 365,005 ‐ 1,889,140 Ridgeview Academy ‐ 1,963,699 ‐ (357,472) ‐ 1,606,227 Rocky Mountain Prep ‐ ‐ ‐ 554,947 ‐ 554,947 Rocky Mountain School of Expeditionary Learning ‐ 2,214,781 ‐ 189,991 ‐ 2,404,772 Sims‐Fayola Int'L Academy Ms ‐ ‐ ‐ 1,301,071 ‐ 1,301,071 SOAR ‐ 1,327,668 ‐ 300,870 ‐ 1,628,538 SOAR II ‐ 1,209,936 ‐ 1,148,233 ‐ 2,358,169 Southwest Early College ‐ 1,590,044 ‐ 47,031 ‐ 1,637,075 Venture Prep ‐ 2,608,640 ‐ (623,475) ‐ 1,985,165 University Preparatory Academy ‐ 426,764 ‐ 283,977 ‐ 710,741 West Denver Prep ‐ 1,857,900 ‐ (140,853) ‐ 1,717,047 West Denver Prep #2 ‐ 1,631,554 ‐ 38,190 ‐ 1,669,744

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

West Denver Prep #3 ‐ 901,171 ‐ 798,377 ‐ 1,699,548 West Denver Prep #4 ‐ 1,001,158 ‐ 625,870 ‐ 1,627,028 West Denver Prep Green Valley ‐ ‐ ‐ 509,997 ‐ 509,997 West Denver Prep Montebello ‐ ‐ ‐ 537,508 ‐ 537,508 West Denver Prep Smart ‐ ‐ ‐ 726,081 ‐ 726,081 Wyatt‐Edison ‐ 3,596,680 ‐ (131,949) ‐ 3,464,731 Escuela Tlatelolco Centro De Estudios ‐ 720,823 ‐ (53,676) ‐ 667,147 Florence Crittenton 10.99 1,588,993 (0.79) (214,040) 10.20 1,374,953 Transfer to Emily Griffith Opportunity School (Second Chance Program) 1.00 2,222,941 (1.00) 62,397 ‐ 2,285,338 Charter Contingency Reserve ‐ ‐ ‐ 119,437 ‐ 119,437 Total Charter/Contract Schools 11.99 58,574,272 (1.79) 8,611,189 10.20 67,185,461 DISTRICTWIDE BUDGETS School Consolidation Costs (Primarily funded with one time funds) 2.75 1,840,404 9.25 383,384 12.00 2,223,788 Teacher Extra Pay for Extra Curricular Activities ‐ 50,937 ‐ 629,063 ‐ 680,000 District wide teacher substitutes ‐ 269,055 ‐ ‐ ‐ 269,055 Principal Pay for Performance ‐ 1,800,000 ‐ ‐ ‐ 1,800,000 District wide Paid Leaves ‐ 3,336,507 ‐ ‐ ‐ 3,336,507 Salary Turnover/Hire Lag ‐ district wide ‐ (7,211,957) ‐ (14,210,395) ‐ (21,422,352) Employee Benefit ‐Fixed Charges ‐ unallocated retirement benefits and unemployment compensation ‐ 5,778,224 ‐ ‐ ‐ 5,778,224 Technology Improvements (Primarily funded with one time funds) ‐ 1,000,000 ‐ (1,000,000) ‐ ‐ County Treasurer Property Tax Collection Fees ‐ 751,986 ‐ (41,359) ‐ 710,627 1997/2008 Pension Certificates of Participation (PCOPs) ‐ Lease Payments, Annual Expenses, and Reserves ‐ 58,970,284 ‐ (623,740) ‐ 58,346,544 Offset share of PCOPs cost allocated to general fund school and dept budgets ‐ (46,334,416) ‐ (12,012,128) ‐ (58,346,544) Compensation increases for active employees ‐ 600,000 ‐ ‐ ‐ 600,000 Contingency Reserve ‐ 27,361,327 ‐ 12,467,543 ‐ 39,828,870 Unassigned Teachers ‐ 4,749,387 ‐ 1,250,613 ‐ 6,000,000 School Location/Relocation Support Reserve ‐ 3,453,307 ‐ (1,453,307) ‐ 2,000,000 School Carryforward ‐ ‐ ‐ 7,000,000 ‐ 7,000,000 Utilities ‐ 1,000,000 ‐ 1,000,000 ‐ 2,000,000 Certificate of Participation ‐ 9,000,000 ‐ ‐ ‐ 9,000,000 Charter TABOR Reserve ‐ 1,930,151 ‐ ‐ ‐ 1,930,151 Risk Finance Related Insurance ‐ 1,000,000 ‐ ‐ ‐ 1,000,000 Risk Interfund Transfer ‐ 4,792,412 ‐ 4,130,491 ‐ 8,922,903 Transfer In From Other Funds ‐ Bond Redemption Fund ‐ (120,000) ‐ (30,000) ‐ (150,000) Transfer Out To Other Funds ‐ Extended Day Kindergarten ‐ ‐ ‐ 2,268,936 ‐ 2,268,936 Transfer Out To Other Funds ‐ All Day Kindergarten ‐ ‐ ‐ 420,150 ‐ 420,150 Contingency Reserve ‐ 3% per Board Policy ‐ 16,928,993 ‐ 539,277 ‐ 17,468,270 'Reserve for Potential CDE Audit Results ‐ 2,400,000 ‐ (2,400,000) ‐ ‐ Total Fixed/Districtwide Budgets/Reserves 2.75 93,346,601 9.25 (1,681,472) 12.00 91,665,129 TOTAL GENERAL OPERATING FUND 10 5,752.04 664,869,174 7.64 (2,500,963) 5,759.68 662,368,211

• ff ‐0.52
• ff 160.57

COLORADO PRESCHOOL & KINDERGARTEN PROGRAM (CPKP) Early Education ‐ central support, contracted service providers 14.35 6,227,156 (2.85) (177,911) 11.50 6,049,245 Grades K‐8 Schools 15.50 1,398,660 (1.50) (200,274) 14.00 1,198,386 Elementary Schools 106.60 9,806,902 (6.10) (1,227,911) 100.50 8,578,991 Reserve for Preschool Programs ‐ 619,785 ‐ (619,785) ‐ ‐ Total Colorado Preschool & Kindergarten Program (CPKP) 136.45 18,052,503 (10.45) (2,225,881) 126.00 15,826,622 TOTAL GENERAL FUNDS 10 & 19 5,888.49 682,921,677 (2.81) (4,726,844) 5,885.68 678,194,833 1998 MILL LEVY OVERRIDE ‐ OTHER SCHOOL ALLOCATIONS Student Literacy Development Traditional Schools 50.92 4,119,714 1.60 52,302 52.52 4,172,016 Alternative Schools 0.57 109,917 (0.37) (6,254) 0.20 103,663 Other School Allocations K‐3 Reading Assistance (Charter Schools) ‐ 622,112 ‐ 109,381 ‐ 731,493 School Tutorial ‐ DPS Success ‐ 239,654 ‐ 18,072 ‐ 257,726 Total 1998 Mill Levy Override ‐ Other School Allocations 51.49 5,091,397 1.23 173,501 52.72 5,264,898 1998 MILL LEVY OVERRIDE ‐ LIBRARY Library Materials ‐ School and Boost funds ‐ 917,818 ‐ 6,753 ‐ 924,571 Total 1998 Mill Levy Override ‐ Library ‐ 917,818 ‐ 6,753 ‐ 924,571

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

1998 MILL LEVY OVERRIDE ‐ TECHNOLOGY Educational Technology 10.44 1,781,578 0.41 74,462 10.85 1,856,040 Total 1998 Mill Levy Override ‐ Technology 10.44 1,781,578 0.41 74,462 10.85 1,856,040 1998 MILL LEVY OVERRIDE ‐ TEXTBOOKS Textbooks for Emily Griffith ‐ 27,500 ‐ (27,500) ‐ ‐ Textbooks for Charter Schools ‐ 603,003 ‐ 105,168 ‐ 708,171 Textbook Boost ‐ District wide ‐ 451,822 ‐ (148,005) ‐ 303,817 Total 1998 Mill Levy Override ‐ Textbooks ‐ 1,082,325 ‐ (70,337) ‐ 1,011,988 1998 MILL LEVY OVERRIDE ‐ OTHER STUDENT LITERACY PROGRAMS Indian Education 4.12 255,892 0.10 1,190 4.22 257,082 Educational Resource Services 16.00 1,115,966 1.00 ‐ 17.00 1,115,966 Library Automation ‐ 173,634 ‐ 3,549 ‐ 177,183 Costume Department ‐ 45,560 ‐ ‐ ‐ 45,560 Credit Recovery 2.81 450,000 (2.81) ‐ ‐ 450,000 Textbook Acquisition Services 0.48 32,677 0.07 ‐ 0.55 32,677 UNC Paraprofessional Program ‐ 272,687 ‐ ‐ ‐ 272,687 Central Receiving (support for library/textbook and technology acquisition) 3.50 210,005 (0.50) ‐ 3.00 210,005 Assessment Program ‐ Benchmark Testing 3.80 360,939 (0.80) ‐ 3.00 360,939 9th Grade Academies 0.20 343,293 (0.10) 6,707 0.10 350,000 Total 1998 Mill Levy Override ‐ Other Student Literacy Programs 30.91 3,260,653 (3.04) 11,446 27.87 3,272,099 1998 MILL LEVY OVERRIDE ‐ OTHER TECHNOLOGY PROGRAMS Educational Technology 4.00 476,745 ‐ ‐ 4.00 476,745 Distance Learning 7.75 760,721 0.25 ‐ 8.00 760,721 Dept of Technology Services‐Info Systems Technology 5.00 1,060,596 1.00 ‐ 6.00 1,060,596 Dept of Technology Services‐Technology Application 1.00 109,108 ‐ ‐ 1.00 109,108 Dept of Technology Services‐Customer Relations Management 1.00 97,410 ‐ ‐ 1.00 97,410 Dept of Technology Services‐Product Management 1.00 112,165 ‐ ‐ 1.00 112,165 Data Quality Management Team 4.00 353,866 ‐ ‐ 4.00 353,866 Total 1998 Mill Levy Override ‐ Other Technology Programs 23.75 2,970,611 1.25 ‐ 25.00 2,970,611 1998 MILL LEVY OVERRIDE ‐ MAINTENANCE Deferred Building Maintenance 45.35 3,524,381 0.65 ‐ 46.00 3,524,381 Total 1998 Mill Levy Override ‐ Maintenance 45.35 3,524,381 0.65 ‐ 46.00 3,524,381 1998 MILL LEVY OVERRIDE ‐ DISTRICTWIDE BUDGETS Salary Turnover / Hire Lag ‐ (277,023) ‐ 6,238 ‐ (270,785) County Treasurer Property Tax Collection Fees ‐ 42,112 ‐ (2,316) ‐ 39,796 Contingency Reserve ‐ 4,536,772 ‐ 802,696 ‐ 5,339,468 Contingency Reserve ‐ 3% per Board Policy ‐ 510,000 ‐ (5,100) ‐ 504,900 Contingency Reserve ‐ 3% per Board Policy ‐ ‐ ‐ 33,933 ‐ 33,933 Total 1998 Mill Levy Override ‐ Fixed/Districtwide Budgets/Reserves ‐ 4,811,861 ‐ 835,451 ‐ 5,647,312 TOTAL 1998 MILL LEVY OVERRIDE ‐ FUND 12 161.94 23,440,624 0.50 1,031,276 162.44 24,471,900 2003 MILL LEVY OVERRIDE ‐ CAPITAL IMPROVEMENTS/MAINTENANCE Safety and Security 2.00 184,833 ‐ ‐ 2.00 184,833 Dept of Technology Services 7.00 1,101,818 ‐ ‐ 7.00 1,101,818 Central Receiving (support for textbook acquisition) 0.42 18,366 (0.08) ‐ 0.34 18,366 Maintenance 9.60 632,391 (0.25) ‐ 9.35 632,391 Total 2003 Mill Levy Override ‐ Capital Improvements/Maintenance 19.02 1,937,408 (0.33) ‐ 18.69 1,937,408 2003 MILL LEVY OVERRIDE ‐ IMPROVING STUDENT ACHIEVEMENT Professional Development ‐ 538,712 ‐ (99,263) ‐ 439,449 School Startup Funds ‐ ES 2.50 756,481 0.50 (504,206) 3.00 252,275 School Startup Funds ‐ 6‐12 5.00 275,000 (5.00) (275,000) ‐ ‐ School Startup Funds ‐ MS ‐ ‐ 3.60 320,606 3.60 320,606 School Startup Funds ‐ HS ‐ ‐ ‐ 227,119 ‐ 227,119 AVID 2.50 349,933 0.25 100,067 2.75 450,000 Improve Graduation Rates ‐ Alternative ‐ 2,500 ‐ (2,500) ‐ ‐ Improve Graduation Rates ‐ 6‐12 ‐ 5,000 ‐ (5,000) ‐ ‐ Improve Graduation Rates ‐ ES ‐ 10,500 ‐ (10,500) ‐ ‐ Improve Graduation Rates ‐ HS ‐ 25,000 ‐ (25,000) ‐ ‐ Improve Graduation Rates ‐ K‐8 ‐ 16,500 ‐ (16,500) ‐ ‐ Improve Graduation Rates ‐ MS ‐ 21,000 ‐ (21,000) ‐ ‐ School Improvement/Performance Mill Levy Grants 5.13 1,497,946 (1.11) (284,188) 4.02 1,213,758 Total 2003 Mill Levy Override ‐ Improving Student Achievement 15.13 3,498,572 (1.76) (595,365) 13.37 2,903,207

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

2003 MILL LEVY OVERRIDE ‐ IMPROVING GRADUATION RATES College Readiness 2.25 778,064 1.00 (228,064) 3.25 550,000 Assessment Program ‐ Benchmark Testing 5.25 857,091 (0.25) ‐ 5.00 857,091 Concurrent Enrollment and Credit Recovery ‐ ‐ (2.86) ‐ ‐ 1,140,000 2003 Mill Levy Instructional Support Teams ‐ ‐ ‐ ‐ 0.96 78,893 Total 2003 Mill Levy Override ‐ Improving Graduation Rates 11.32 2,854,048 (2.11) (228,064) 9.21 2,625,984 2003 MILL LEVY OVERRIDE ‐ ECE AND KINDER Transfer to Special Revenue Fund (ECE/Kinder Charter Schools) ‐ 364,311 ‐ 468,179 ‐ 832,490 Transfer to Special Revenue Fund (Extended Day Kindergarten) ‐ ‐ ‐ 1,129,930 ‐ 1,129,930 Transfer to Special Revenue Fund (All Day Kindergarten) ‐ ‐ ‐ 1,818,419 ‐ 1,818,419 Transfer to Special Revenue Fund (Early Childhood Learning) ‐ 1,054,590 ‐ (1,054,590) ‐ ‐ Transfer to Special Revenue Fund Early Childhood Education (All Day Kindergarten) ‐ 2,086,451 ‐ (2,086,451) ‐ ‐ Total 2003 Mill Levy Override ‐ Ece And Kinder ‐ 3,505,352 ‐ 275,487 ‐ 3,780,839 2003 MILL LEVY OVERRIDE ‐ TEXTBOOKS School Based Textbooks Purchases ‐ 646,960 ‐ 16,850 ‐ 663,810 District wide Textbooks Purchases ‐ 2,622,454 ‐ 205,286 ‐ 2,827,740 Total 2003 Mill Levy Override ‐ Textbooks ‐ 3,269,414 ‐ 222,136 ‐ 3,491,550 2003 MILL LEVY OVERRIDE ‐ ARTS AND MUSIC Elementary Schools ‐ Arts & Music 75.50 5,219,394 (1.50) (191,983) 74.00 5,027,411 K‐8 Schools ‐ Arts & Music 23.00 1,593,968 ‐ (28,688) 23.00 1,565,280 Charter Schools ‐ Arts & Music ‐ 896,547 ‐ (150,246) ‐ 746,301 Interdisciplinary Curriculum ‐ Arts 3.00 673,737.00 ‐ (393.00) 3.00 673,344.00 Total 2003 Mill Levy Override ‐ Arts And Music 101.50 8,383,646 (1.50) (371,310) 100.00 8,012,336 2003 MILL LEVY OVERRIDE ‐ DISTRICTWIDE BUDGETS 2003 Mill Levy County Treasurer Property Tax Collection Fees ‐ 49,523 ‐ (2,724) ‐ 46,799 Arts and Music ‐ ML Contingency Reserve ‐ 5,426,914 ‐ ‐ ‐ 5,426,914 Textbooks ‐ ML Contingency Reserve ‐ 3,345,470 ‐ ‐ ‐ 3,345,470 Improving Student Achievement ‐ ML Contingency Reserve ‐ 320,092 ‐ 315,251 ‐ 635,343 Improving Graduation Rates ‐ ML Contingency Reserve ‐ 1,236,676 ‐ ‐ ‐ 1,236,676 General ‐ ML Contingency Reserve ‐ 4,627,349 ‐ 790,190 ‐ 5,417,539 Contingency Reserve ‐ 3% per Board Policy ‐ 600,000 ‐ (6,000) ‐ 594,000 School Consolidation 3.50 320,000 (3.50) (320,000) ‐ ‐ Total 2003 Mill Levy Override ‐ Districtwide Budgets 3.50 15,926,024 (3.50) 776,717 ‐ 16,702,741 TOTAL 2003 MILL LEVY OVERRIDE ‐ FUND 16 150.47 39,374,464 (9.20) 79,601 141.27 39,454,065 GENERAL PROJECTS Extended Learning ‐ (127) ‐ 127 ‐ ‐ EGOS Trust Fund ‐ 246,403 ‐ 314 ‐ 246,717 Beacons Project ‐ 38,240 ‐ (38,240) ‐ ‐ Student Services ‐ 24,975 ‐ (4,098) ‐ 20,877 Distance Learning ‐ 62,273 ‐ (62,273) ‐ ‐ Retirement Dinner ‐ 11,440 ‐ (11,440) ‐ ‐ Library Book Fair‐Ed Resource ‐ 29,741 ‐ 4,907 ‐ 34,648 Enterprise System Development ‐ 247,056 ‐ (10,000) ‐ 237,056 Pepsi Contract Implementation ‐ 103,749 ‐ (103,749) ‐ ‐ Wal‐Mart Grant ‐ 519 ‐ (519) ‐ ‐ Grant Accounting 7.70 593,572 1.55 157,729 9.25 751,301 Tough Schools Partnerships ‐ 862 ‐ (862) ‐ ‐ CEC‐Automechanics ‐ 8,143 ‐ (8,143) ‐ ‐ CEC‐Child Care 2.00 187,546 ‐ (56,296) 2.00 131,250 CEC‐Restaurant Arts ‐ 21,511 ‐ (21,511) ‐ ‐ CEC‐Autobody Repair & Painting ‐ 9,617 ‐ (9,617) ‐ ‐ Grogan Family Fund Grant ‐ 1,608 ‐ (1,608) ‐ ‐ Horace Mann Neighbrhd Ctr‐Mhuw 0.05 24,412 0.35 28,205 0.40 52,617 Miscellaneous Donations 3.43 1,567,206 (1.43) (1,414,870) 2.00 152,336 Qwest E‐Rate ‐ 3,532,918 ‐ (720,712) ‐ 2,812,206 Kepner Outdoor Club ‐ 1,786 ‐ (1,786) ‐ ‐ Medicaid Consortium Staff Budget 8.00 496,617 (8.00) (496,617) ‐ ‐ Emerson Street Summer School ‐ 4,870 ‐ (4,870) ‐ ‐ Cal Frazier Super Fellows ‐ 1,411 ‐ (1,411) ‐ ‐ Student Attendance Grant ‐ 27,908 ‐ (27,908) ‐ ‐ Pupil Activities Fund CMS ‐ (1,269) ‐ 1,269 ‐ ‐

GENERAL FUND

PROGRAM OR ACTIVITY Staff Expenditures Staff Expenditures Staff Expenditures FY 11‐12 Amended Budget Adjustments FY 12‐13 Adopted Budget

Lindamood Bell ‐ 37,769 ‐ (37,769) ‐ ‐ Before/After School Program Brown ‐ (636) ‐ 636 ‐ ‐ Womens Bureau Program ‐ 1,000 ‐ (1,000) ‐ ‐ EGOS Foundation Reimbursement ‐ 36,129 ‐ (27,119) ‐ 9,010 Friends Of Manual High School 0.26 15,954 (0.26) (15,954) ‐ ‐ Intervention/Afterschool Ipads ‐ (2,599) ‐ 2,599 ‐ ‐ Metlife Teacher Ambassador ‐ 109 ‐ (109) ‐ ‐ Multiculteral Outreach Office ‐ 20,174 ‐ (20,174) ‐ ‐ PTA Funded 2.00 257,940 ‐ (107,940) 2.00 150,000 Back To School Grant ‐ 71 ‐ (71) ‐ ‐ Martin & Gloria Family Sboe ‐ 691 ‐ (691) ‐ ‐ Jared Polis Recognition Award ‐ 930 ‐ (930) ‐ ‐ Metlife Ambassador ‐ 2,842 ‐ (2,842) ‐ ‐ EGOS‐Dpw‐Parking Revenue ‐ 68,834 ‐ (23,834) ‐ 45,000 Translations ‐ 17,533 ‐ (17,533) ‐ ‐ Microsoft Alliance ‐ 50,000 ‐ (50,000) ‐ ‐ Lighting ‐ 12,451 ‐ (12,451) ‐ ‐ Daeop Implementation ‐ 500,000 ‐ (6,000) ‐ 494,000 Kepner Garden ‐ 2,654 ‐ (2,654) ‐ ‐ Bromwell Professional Dvlpmt ‐ 24,764 ‐ (24,764) ‐ ‐ Edison Pta Supplies & Books Gr ‐ 13,000 ‐ (13,000) ‐ ‐ Edison Pta Supplies & Books Gr ‐ 600 ‐ (600) ‐ ‐ Daeop Implementation ‐ 2,000 ‐ (2,000) ‐ ‐ Kepner Garden ‐ 440 ‐ (440) ‐ ‐ Bromwell Professional Dvlpmt ‐ 1,000 ‐ (1,000) ‐ ‐ Edison Pta Supplies & Books Gr ‐ 2,000 ‐ (2,000) ‐ ‐ Edison Pta Supplies & Books Gr ‐ 126,335 ‐ (126,335) ‐ ‐ EGOS ‐ Second Chance 19.20 2,436,359 3.90 429,501 23.10 2,865,860 EGOS ‐ Assesment & Counseling 1.00 473,543 1.00 85,206 2.00 558,749 EGOS ‐ Esl 0.50 322,818 2.82 (25,330) 3.32 297,488 EGOS Customized Training Program ‐ 19,360 ‐ (5,360) ‐ 14,000 Dnvr Post Press For Literacy 0.15 17,950 (0.15) (17,950) ‐ ‐ Waters Truck ‐ 20,212 ‐ (20,212) ‐ ‐ Balarat Outdoor Education Center ‐ 71,170 ‐ (71,170) ‐ ‐ Community Engagement ‐ 1,396,098 ‐ (1,396,098) ‐ ‐ Staff Development ‐ 105,953 ‐ (105,953) ‐ ‐ Ext Day Tuition Paid Kindergarten 46.75 5,611,894 5.75 (874,581) 52.50 4,737,313 Extended Day (245) Greenlee 5.00 245,484 (5.00) (245,484) ‐ ‐ Kaleidoscope Corner 35.45 5,026,026 6.41 (111,512) 41.86 4,914,514 Kaleidoscope Corner Camps 1.00 758,468 0.50 26,532 1.50 785,000 Registrar ‐ 475,000 ‐ (475,000) ‐ ‐ Extended Learning Cntrl Admin 1.55 165,949 (1.55) (165,949) ‐ ‐ All Day Kindergarten 36.00 3,348,901 (10.00) (1,030,873) 26.00 2,318,028 Sale Of Curriculum ‐ 93,942 ‐ (93,942) ‐ ‐ Community Use Of Buildings 6.81 1,178,637 1.00 (216,699) 7.81 961,938 Gt Screening Fee Program ‐ 36,368 ‐ 632 ‐ 37,000 Capital Improvment Egos ‐ 212,992 ‐ (10,884) ‐ 202,108 Enrichment Program ‐ (1,314) ‐ 1,314 ‐ ‐ After School Program ‐ 10,381 ‐ (10,381) ‐ ‐ Vista Coffee ‐ 1,000 ‐ (1,000) ‐ ‐ Vista Cullinary ‐ 2,000 ‐ (2,000) ‐ ‐ Vista Concessions ‐ 1,000 ‐ (1,000) ‐ ‐ Tuition Billing 5.00 440,289 (5.00) (440,289) ‐ ‐ Interfund Transfer Total ‐ (9,276,246) (2.00) 1,260,513 (2.00) (8,015,733) TOTAL GENERAL PROJECTS ‐ FUND 13 181.85 21,629,206 (10.11) (6,815,923) 171.74 14,813,283 TOTAL APPROPRIATED GENERAL FUND 6,382.75 767,365,971.00 (21.62) (10,431,890.00) 6,361.13 756,934,081.00

Government Designated Purpose Grants Fund

 Beginning Balance

– Emily Griffith Technical College (EGOS) is responsible for the vast majority of the Beginning Balance and Ending Balance (carry forward) as fund balance

 Revenues and Expenditures

– The grant revenue for most of these grants comes into DPS on a reimbursement basis. The grant revenues will equal expenses – FY13 revenue is down $25.5 million. The primary drivers of this reduction include: – The ARRA grants in Fund 20 ended in FY2011-12. The three remaining ARRA grants have been moved into Fund 27 for FY13 and include 1003g, I3, and TQP (Teacher Quality Partnership) – Due to a combination of allocation and carryover reductions, Title I is down by $10.5 million, Title II is down $865,000, Title III is down $1.2 million, and the Teacher Incentive fund (TIF) grant ended in FY2011-12 as well – and that is a reduction of over $2 million in funding for FY2012-13 – EGOS funding is down by $1.6 million – Several additional grants have smaller allocations for FY2012-13

 Ending Balance

– No plan for an ending balance due to Federal Grant Guidelines

• 50 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Available Resources Beginning Balance 7,200,777 363,648 7,564,425

• 7,564,425

Local Support Property Taxes

• Specific Ownerships Taxes
• Other Local Support

4,267,021 412,296 4,679,317

• 4,679,317

State Support State Equalization

• State Revenue

14,344,467 (4,510,884) 9,833,583

• 9,833,583

Charter School Capital Construction

• Federal Support

Other Federal Support 113,130,661 (20,217,404) 92,913,257

• 92,913,257

Other Support Other Miscellaneous

• Total Current Resources

131,742,149 (24,315,992) 107,426,157

• 107,426,157

Total Available Resources 138,942,926 (23,952,344) 114,990,582

• 114,990,582

Expenditures Employee Salaries 70,699,341 (17,493,090) 53,206,251 5,778,535 58,984,786 Employee Benefits 19,168,108 (4,233,029) 14,935,079 979,801 15,914,880 Purchased Services 29,625,943 (3,695,497) 25,930,446 (4,695,233) 21,235,213 Charter Schools 508,134 5,550,925 6,059,059 (2,401,150) 3,657,909 Supplies & Materials 8,505,698 (4,683,369) 3,822,329 156,047 3,978,376 Property 1,702,587 (965,808) 736,779

• 736,779

Other Expenses 4,866,323 (1,619,113) 3,247,210 182,000 3,429,210 Debt Service Interest & Fees

• Debt Service Principal
• Total Current Year Expenditures

135,076,132 (27,138,977) 107,937,155

• 107,937,155

Other Resources Interfund Transfers 190,000 52,960 242,960

• 242,960

Transfer In From Other Funds (200,000) 50,000 (150,000)

• (150,000)

Total Current Year Expenditures & Other Resources 135,066,132 (27,036,017) 108,030,115

• 108,030,115

Appropriated Reserves - Assigned Site Assigned Reserves 3,876,794 3,083,675 6,960,469

• 6,960,469

Total Appropriations 138,942,926 (23,952,344) 114,990,582

• 114,990,582

Unappropriated Reserves - Unassigned Other Reserves

• T
• Government Designated Purpose Grants

Funds 20, 24, 25, 26, 27 and 28

Revenues 2011-2012 FTEs 2011-2012 FTEs 2011-2012 FTEs Beginning Balance

• Innovation Fund

1,492,864

• (1,492,864)
• Office Of Energy Conservation

21,860

• (21,860)
• Preschool

45,549

• (45,549)
• Tiered Intervention Grant

1,569,833

• (1,569,833)
• Title II

48,880

• (48,880)
• Title II D Ed Tech

39,220

• (39,220)
• Title VI

938,830

• (938,830)
• Total Revenues

4,157,036

• (4,157,036)
• Expenditures

Dollars FTEs Dollars FTEs Dollars FTEs Elementary School 254,847

• (254,847)
• K-8 School

227,800

• (227,800)
• Middle School

464,500

• (464,500)
• 6-12 School

61,046

• (61,046)
• High School

625,554

• (625,554)
• Charter School

41,127

• (41,127)
• Innovation Fund

1,387,823

• (1,387,823)
• Office Of Energy Conservation

21,860

• (21,860)
• Preschool

45,549 0.59 (45,549) (0.59)

• Title II - Central School Support

48,880

• (48,880)
• Title II D Ed Tech

39,220

• (39,220)
• Title VI - Central School Support

938,830 12.32 (938,830) (12.32)

• Total Expenditures & Reserves

4,157,036 12.91 (4,157,036) (12.91)

• Other Resources

Dollars FTEs Dollars FTEs Dollars FTEs Interfund Transfers (Transfers to other funds)

• ‐
• Interfund Transfers (Transfers from other funds)
• ‐
• Total Current Year Expenditures & Other Resources
• Federal Stimulus Fund 20 Project

Adjustments FY 12-13 Adopted Budget FY 11-12 Amended Budget

Revenues 2011-2012 FTEs 2011-2012 FTEs 2011-2012 FTEs Beginning Balance 7,200,777

• 363,648
• 7,564,425
• Local Sources

4,267,021

• 412,296
• 4,679,317
• State Sources

14,344,467

• (4,510,884)
• 9,833,583
• Federal Sources

108,973,625

• (16,060,368)
• 92,913,257
• Total Revenues

134,785,890

• (19,795,308)
• 114,990,582
• Dollars

FTEs Dollars FTEs Dollars FTEs Expenditures ARRA Grant 17,973

• (17,973)
• Arts Education Award

44

• (44)
• Crossing Guards

82,000

• (19,412)
• 62,588
• Morey Community Center

103,340 0.11 (17,840) 0.05 85,500 0.16 Park Hill Thriving Communities 649

• (649)
• Summer In The Parks Program

30,878

• 495
• 31,373
• CO Council-The Arts Mini

(88)

• 88
• Colorado Need Based Grant - EGOS

543,861

• (364,686)
• 179,175
• Colorado Work Study

(9,440)

• 49,673
• 40,233
• Colorado Work Study 2

35,807

• (35,807)
• Read To Achieve

2,976,757 23.00 (2,976,757) (23.00)

• Read To Achieve Round Three

(1,310)

• 1,310
• School Counselor Corporation

1,022,721 10.00 (227,402) 1.50 795,319 11.50 State - Gifted and Talented 736,221 3.20 80,235 (0.45) 816,456 2.75 State ELPA (English Language Proficiency Act) 3,356,671 3.50 (56,671) (2.00) 3,300,000 1.50 State Vocational ED - EGOS 17,250,090 70.38 (855,044) (0.22) 16,395,046 70.16 TGYS Techknow (4,599)

• 4,599
• 2009 Start School Grants

18,307

• (18,307)
• 21st Century Community Learning

596,687

• (44,059)

4.68 552,628 4.68 21st Century Community Learning 713,701 3.07 (294,711) 0.73 418,990 3.80 21st Century Community Learning 591,414 0.85 (74,577)

• 516,837

0.85 Total 21st Century Community Learning 1,901,802 3.92 (413,347) 5.41 1,488,455 9.33 AEFL Expansion Grant 247,680 1.00 (247,680) (1.00)

• AmeriCorps

261,814 0.50 (261,814) (0.50)

• Americorp - Serve Colorado

3,500

• (3,500)
• Arts Field Trip Fund

4,000

• (4,000)
• Building Capacity For Teacher Quality

201

• (201)
• Carl Perkins

1,304,303 4.60 (459,771) (3.85) 844,532 0.75 Center For Excellence 16,250

• (16,250)
• Charter School Grant

2,079,885 2.00 (554,885) (2.00) 1,525,000

• Coordinated School Health

137

• (137)
• Cultural Affairs Grant

111

• (111)
• DPS Sustainability Project-Iga

50,000 0.05 (50,000) (0.05)

• Drop Out Prevention & Student Engagement

179,258 0.20 (23,968) (0.20) 155,290

• Early Reading First

1,229,585 5.05 (400,817)

• 828,768

5.05 Education and Human Resources 19,168 0.10 (19,168) (0.10)

• Elementary & Secondary Counseling

653,384 1.50 (653,384) (1.50)

• Ellis Food & Nutrition Grant

1,471

• (1,471)
• Expelled At Risk Students

906,282 3.20 (728,174) (0.20) 178,108 3.00 Foreign Languages Assistance 315,463

• (240,463)
• 75,000
• Fund for the Improvement of Education

182,660 3.00 (182,660) (3.00)

• Gear Up

6,911

• (6,911)
• Gear Up Grant

717,756 5.45 2,866 (0.20) 720,622 5.25 Head Start 1,662,965 16.60 (147,713) 1.75 1,515,252 18.35 Innovation Fund 4,043,422 24.50 2,622,233 5.01 6,665,655 29.51 NSF 20,673

• (20,673)
• Government Designated Purpose Grants

Fund by Project

Adjustments FY 12-13 Adopted Budget FY 11-12 Amended Budget

Government Designated Purpose Grants Fund by Project

Adjustments FY 12-13 Adopted Budget FY 11-12 Amended Budget Pell Grant 1,400,000

• (1,400,000)
• Pell Grant - Temporary
• 1,600,000
• 1,600,000
• Preschool

381,043 5.50 223,676 3.00 604,719 8.50 Promotion Of School Safety Sap 15,518

• (15,518)
• Reading Recovery

1,703,903 17.36 (1,703,903) (17.36)

• Recycling Resources Economic

27,750 0.12 (27,750) (0.12)

• Safe & Drug Free Schools National Program

208,772 0.75 (159,601) (0.75) 49,171

• Safe Routes To Schools

54,650

• (5,650)
• 49,000
• School Improvement Grant

284,823

• (234,823)
• 50,000
• School to Work Alliance Program

613,560 8.70 (32,310) (0.42) 581,250 8.28 Sun Safety Colorado 136

• (136)
• TANF

725,582 6.00 (725,582) (6.00)

• Teacher Incentive Fund

2,074,814 6.75 (2,074,814) (6.75)

• Teacher Quality Partnerships

1,620,567 5.95 287,594 0.15 1,908,161 6.10 Team Nutrition 14,944

• (14,944)
• Tiered Intervention Grant: Fnd2

4,987,555 30.05 977,443 24.16 5,964,998 54.21 Title I 44,563,978 378.62 (6,204,242) (4.10) 38,359,736 374.52 Title I - Central Programs 785,533 7.20 (785,533) (7.20)

• Title I - FNE Tutoring Program

3,787,860

• (1,887,860)

51.00 1,900,000 51.00 Title I Part C 208,508 6.00 (132,221) (5.00) 76,287 1.00 Title I Part D 741,461 13.70 (110,923) (13.70) 630,538

• Title I Reallocated Funds Family Literacy Grant

336,468 1.00 (336,468) (1.00)

• Title II - B Math And Science Partner

276,775 0.20 (226,775) (0.20) 50,000

• Title II - D Technology

53,655 0.60 (53,655) (0.60)

• Title II -Teacher Quality

5,504,467 31.50 (865,944) 1.59 4,638,523 33.09 Title III English Language Acquisition 4,076,593 9.25 (1,184,164)

• 2,892,429

9.25 Title III Set Aside: Immigrant 828,678 4.75 121,322 (4.75) 950,000

• Title IX - Indian Education

170,048 1.98 14,521 (0.84) 184,569 1.14 Title VI - IDEA B - Main / Special Education 17,731,144 171.95 (182,798) 7.95 17,548,346 179.90 Title X- Education for Homeless Children and Youth 44,000

• 1.20

44,000 1.20 Tony Grampsa Youth Services 50,067 0.04

• 50,067

0.04 Undesignated (1,469,104)

• 1,469,104
• Urban Principal Leadership Program

1,023,579 8.00 39,877 (3.00) 1,063,456 5.00 Total Expenditures & Reserves 134,795,890 897.83 (19,898,268) (7.29) 114,897,622 890.54 Other Resources Dollars FTEs Dollars FTEs Dollars FTEs Interfund Transfers (Transfers to other funds) 10,000

• (102,960)
• (92,960)
• Interfund Transfers (Transfers from other funds)
• ‐
• ‐
• ‐

Total Current Year Expenditures & Other Resources 134,785,890 897.83 (19,795,308) (7.29) 114,990,582 890.54

Special Revenue Fund

 Beginning Balance

– $3.2 million reduction in Beginning Balance – Although many grants are multi-year awards, the entire grant is budgeted when it is received

• As such, many grants will consume their Beginning Balance from year to year

– Early Education has continued to use its Beginning Balance to offset reductions in state funding

 Revenues and Expenditures

– $16 million decrease in revenue and expense – The FY2011-12 Budget includes $30M of projects that have been received during the fiscal year – As new projects/grants are awarded in FY2012-13, the budget will be amended to reflect such changes

• 51 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 6,943,314 (3,228,339) 3,714,975

• 3,714,975

Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

38,901,959 (15,789,192) 23,112,767

• 23,112,767

State Support State Equalization

• State Revenue

3,500 (3,500)

• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Current Year Revenues

38,905,459 (15,792,692) 23,112,767

• 23,112,767

Total Available Resources 45,848,773 (19,021,031) 26,827,742

• 26,827,742

Expenditures Employee Salaries 21,037,209 (3,104,473) 17,932,736

• 17,932,736

Employee Benefits 5,946,950 (1,288,731) 4,658,219

• 4,658,219

Purchased Services 11,252,136 (6,111,530) 5,140,606

• 5,140,606

Charter Schools

• 30,000

30,000

• 30,000

Supplies & Materials 4,331,990 (1,954,415) 2,377,575

• 2,377,575

Property 1,641,060 (141,992) 1,499,068

• 1,499,068

Other Expenses 4,712,633 (4,090,242) 622,391

• 622,391

Debt Service Interest

• Debt Service Principal
• Total Current Year Expenditures

48,921,978 (16,661,383) 32,260,595

• 32,260,595

Other Resources Interfund Transfers 1,185,575 (1,185,575)

• Transfer In From Other Funds

(4,825,218) (1,747,271) (6,572,489)

• (6,572,489)

Total Current Year Expenditures & Other Resources 45,282,335 (19,594,229) 25,688,106

• 25,688,106

Appropriated Reserves - Assigned Site Assigned Reserves 566,438 388,474 954,912

• 954,912

Total Appropriations 45,848,773 (19,205,755) 26,643,018

• 26,643,018

Unappropriated Reserves - Unassigned Site Assigned Reserves

• 184,724

184,724

• 184,724

Special Revenue Fund 29 Summary

Revenues 2011-2012 FTEs 2011-2012 FTEs 2011-2012 FTEs Beginning Balance 6,943,314

• (3,228,339)
• 3,714,975
• Other Local Sources

38,901,959

• (15,789,192)
• 23,112,767
• Other State Sources

3,500

• (3,500)
• Total Revenues

45,848,773

• (19,021,031)
• 26,827,742
• Expenditures

Dollars FTEs Dollars FTEs Dollars FTEs 2009 ELA Summer Academy 19,584

• (19,584)
• 21st Century Classroom Collaborative

334

• (334)
• A Dramatic Approach To Reading

685

• (685)
• A To Z Grant FY 12

116,011

• (116,011)
• A To Z Grant FY10

5,923

• (5,923)
• A To Z Grant FY11

6,261

• (6,261)
• Action For Healthy Kids

750

• (750)
• Adopt A School

15,622

• (15,622)
• Advanced Tuition Based Kinder

3,802,837 31.88 (82,011) 8.50 3,720,826 40.38 After School Activities CMS 7,086

• (7,086)
• After School Activities Morey

12,677

• (12,677)
• After School Programs Sandoval

1,796

• (1,796)
• Aligning Teacher Performance

5,227,040 22.25 (1,616,198) (1.25) 3,610,842 21.00 Anschutz Foundation-Denison 156

• (156)
• ARE Team Recognition

320

• (320)
• Athletics Activities Academics

4,900,115 21.50 (2,200,115) (11.50) 2,700,000 10.00 Attendance Initiative Award 2,000

• (2,000)
• Baseball Tomorrow Fund/MLB

5,000

• (5,000)
• Better Hearing For All

425

• (425)
• Broad Human Capital

349,718

• (326,253)
• 23,465
• Bromwell Community Fund

215,958 2.00 (215,958) (2.00)

• Bruce Randolph Autonomy Support

(3,861)

• 3,861
• Bruce Randolph Travel Program

1,653

• (1,653)
• Bus Passes-Morgridge Family Foundation

1,250

• (1,250)
• CCTM Profess Dev Award

474

• (474)
• CDE/Qwest Foundation Weekend Backpack

5,000

• (5,000)
• CEC Elder Care Center

(5,484)

• 5,484
• Center For Community Involvement

29

• (29)
• Challenge Day Denver

18,839

• (18,839)
• Child Care For Parents

69

• (69)
• Child Protection

75,000 1.00 (13,336)

• 61,664

1.00 Chp+/Medicaid Enrollment 18,063 0.50 (18,063) (0.50)

• Climbing Wall

209

• (209)
• Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget Clout 3,282

• (3,282)
• COAPPP School Interventions

231

• (231)
• College For Every Student

1,656

• (1,656)
• Colorado Health Foundation Fitness Centers

448,487

• (448,487)
• Colorado Legacy Foundation Grant

136,681

• (136,681)
• Colorado Parking Association

3,110

• (3,110)
• Colorado Parks & Wildlife Award

5,500

• (5,500)
• Colorado Refugee English FY09

8,631

• (8,631)
• Colorado Refugee English FY10

13,857

• (13,857)
• Colorado Refugee English FY11

197,144 0.50 (197,144) (0.50)

• Colorado State Wide Parent Coalition

6,620

• (6,620)
• Colorado Trust Grant

50,209 1.60 (50,209) (1.60)

• Community Garden at Schmitt

10,100

• (10,100)
• CU Science Award

761

• (761)
• Daniels Fund Retreat

489

• (489)
• Data For Progress Grant

9,000

• (9,000)
• DCIS-United Nation's Model Room

43,075

• (43,075)
• Dell Computers

204,551

• 24,643
• 229,194
• Dell Phase III (Toolkit)

627,500

• (247,661)
• 379,839
• Delta Dental Colorado

5,268

• (5,268)
• Denver Art Museum

(105)

• 105
• Denver Camp-Summer Program

(3,569)

• 3,569
• Denver Kids, Inc

22,303 0.25 (289) 0.10 22,014 0.35 Denver Prep League 1,132,112 2.00 (172,112)

• 960,000

2.00 Denver Public Schls Americorps 231,856 0.50 (231,856) (0.50)

• Denver Student Voices

3,660

• (3,660)
• Denver Violin Project

5,992

• (5,992)
• Digital Citizenship Progm Manager

75,000 1.00

• 75,000

1.00 Disney Teacher Awards 690

• (690)
• Donnell - Kaye Foundation Grant

6,196

• (6,196)
• DPS Energy Challenge Support

21,000

• (21,000)
• DPS Success

198,843

• (198,843)
• Each One Teach One

5,945

• (5,945)
• Early Learners' Libraries Target

(6)

• 6
• Early Literacy Program

(913)

• 913
• Ecana Energy Education Grant

26,100

• (26,100)
• Edison Netbook Grant

3

• (3)
• Edison PTA Library Book Grant

46

• (46)
• Educational Outreach Program

2,673

• (2,673)
• El Pomar Foundation

1,341

• (1,341)
• Elementary Science

5,862

• (5,862)
• Eloise Pearson Trust

951

• (951)
• ESL For Parents Of Head Start

504

• (504)

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget FNE Marketing/DSSN Turnarnd 10,000

• (10,000)
• FB Howell Grant

1,244

• (1,244)
• FitFun Playground Program

210,000

• (210,000)
• FNE Anschutz

495,000 6.00 (495,000) (6.00)

• FNE Turnaround Philanthropic

400,000

• (400,000)
• Focus

743

• (743)
• Foreign Language Dictionaries

293

• (293)
• Foundation Grant

6

• (6)
• Friends Of Slavens School

63,189 1.00 (63,189) (1.00)

• Fuel Up To Play

6,200

• (6,200)
• Funds From Closing Schools

23

• (23)
• Gamel Fund

8,492

• (8,492)
• Garden Grant

6,997

• (6,997)
• Gates

203

• (203)
• Gates II

1,089,000 7.00 (999,820)

• 89,180

7.00 Gay Education Advisory Council 1,194

• (1,194)
• General Mills Parental Involve

1

• (1)
• Gilliam GED Scholarships-DCCR

645

• (645)
• Global Climate Change Education

(3,438)

• 3,438
• Green Up Our Schools

4,385

• (4,385)
• Grounds Beautification Award

190

• (190)
• GW HS Dance Program

26,571

• (26,571)
• H1N1 - Influenza Surveillance

5,000

• (5,000)
• Health Agenda Project #1

451,263 0.65 (385,287) (0.15) 65,976 0.50 Health And Wellness Grant 8,005

• (8,005)
• Health Assistant Para

1,083

• (1,083)
• Health Educator Program

8,187

• (8,187)
• Healthy Eating & Active Living

2,500

• (2,500)
• Healthy Kids Colorado Survey

30,998

• (30,998)
• Homework Club

6,496

• (6,496)
• Horace Mann Music Programs

6,509

• (6,509)
• Hunt Alternative Funds

4,000

• (4,000)
• IKON Tech Grant

13,401

• (2,000)
• 11,401
• IMA Enrichment Grant

158

• (158)
• Indian Education Program

2,400

• (2,400)
• Innovation Grant

(111,211)

• 111,211
• Institute For Learning

944

• (944)
• Intensive Day School Project

703

• (703)
• IT Diagnostic Grant

8,010

• (8,010)
• Investing In Innovation

200,000

• 200,000

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget Investing In Innovation - Chase

• 48,722
• 48,722
• Investing In Innovation - CSR-CO
• 117,569

0.40 117,569 0.40 Janus Educational Alliance 595,507 2.25 (396,701) (2.25) 198,806

• Jobs For The Future

42,300

• (42,300)
• Jordan Fundamentals

690

• (690)
• K12 (HB07-1309)

(2,810)

• 2,810
• KCAA Development Grant/Piton

731

• (731)
• KCAA Development/Donnell Kaye

3,142

• (3,142)
• Kinder Morgan Foundation

22

• (22)
• Leadership Development

4,783

• (4,783)
• Lights On After School FY 12

109,746

• (109,746)
• Literacy & Preparatory Skills

40,000 0.45 (40,000) (0.45)

• Little Tree Fund

3,000

• (3,000)
• Listening To Learn

1,715

• (1,715)
• LMC Tech Grant

(8,346)

• 8,346
• Lowe's Grant

3,972

• (3,972)
• Lunch Bunch Early Childhood

669

• (669)
• Make It Take It Lab - IRC

3,219

• 2,125
• 5,344
• Making Connections-Denver

130,003 2.00 (130,003) (2.00)

• Manual Phase III

2,019

• (2,019)
• Math Research

6,000

• (6,000)
• MC Looping Project

(16)

• 16
• Measures Of Effective Teaching

301,677 1.00 (188,018) (0.75) 113,659 0.25 Medicaid 2,906,159 11.60 93,841 4.40 3,000,000 16.00 Medicaid/CHP, Outreach, Enroll 141,626 2.80 (141,626) (2.80)

• Mentorship Grant

5,000

• (5,000)
• Met Extension Research Grant

84,593

• 49,264

0.75 133,857 0.75 MFF Technology Support 1,142

• (1,142)
• Million Word Reader

58

• (58)
• Model Staffing Initiative

(96,070)

• 96,070
• Montessori Tuition Based

985,125 7.75 (985,125) (7.75)

• MOP-Swansea Parent Liaison

70

• (70)
• Morgridge Grant

48,716

• (48,716)
• NCLB - Supplemental Service Provider

779,242 1.10 (275,086) 0.10 504,156 1.20 NEA Foundation Grant 6,482

• (6,482)
• New Teacher Project FY 11

449,714 0.50 241,224 0.50 690,938 1.00 New Teacher Recruitment 450,941

• (191,186)
• 259,755
• NIH - Youth Produced Videos UV

597

• (597)
• NW Coalition

276

• (276)
• Nuggets Prep League-Merchandise

7,788

• (7,788)
• Numeracy Grant

6,000

• (6,000)

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget Parent & Family Engagement Larrk 8,823

• (8,823)
• Partnership For Great Schools

110,000

• (110,000)
• Pep/DCIS Computer Grant

28

• (28)
• Pepsi Grant

6,096

• (6,096)
• Performance Management / Dell

3,553,422 11.20 (3,553,422) (11.20)

• PIC, Zone, Avid Expenses

5,000

• (5,000)
• Post Secondary / AP

3,408

• (3,408)
• Principal Pro Development

4,077

• (4,077)
• Procomp

54,350

• (54,350)
• ProComp Fiscal Model

177

• (177)
• Procomp Transition

(12,099)

• 12,099
• Pto Art Teacher

12,000

• (12,000)
• Qwest

466

• (466)
• Qwest Teacher And Tech Grant

5,140

• (5,140)
• Qwest Volunteers Matching Fund

42

• (42)
• Ramo Family Trust

(661)

• 661
• Read To Succeed

(19,925)

• 19,925
• Reading Is Fundamental R.I.F.

28,414

• (7,914)
• 20,500
• Redesigning Ed Effectiveness

40,000 0.61 (40,000) (0.61)

• Research Observatory

8,319

• (8,319)
• Riverside Church Grant

2,763

• (2,763)
• Rocky Mountain Health Foundation

(272)

• 272
• Rose Community Foundation

15,882

• (7,941)
• 7,941
• Rose Community Foundation Grant

3,000

• (3,000)
• Rose - Leap

43,338 1.00 (43,338) (1.00)

• Rose Youth Foundation Student Voice

3,708

• (3,708)
• Salazar Family Partnership

10,052

• (10,052)
• Salazar Literacy Grant

26,104

• (26,104)
• School Based Immunization Project

91,328

• (62,433)
• 28,895
• School Health Liaison

37,241

• 4,968
• 42,209
• School Nutrition Plus

135,321 1.00 (135,321) (1.00)

• School Partner Program

(14,835)

• 14,835
• School Yard Habitat

185

• (185)
• Science Tracks

1,753

• (1,753)
• Science Tracks 11

3,040

• (3,040)
• Science Tracks ULA

1,203

• (1,203)
• Scotland Trip

2,000

• (2,000)
• Serve Colorado Americorps

20,000 0.25 (20,000) (0.25)

• Shoes For Students

6,382

• (6,382)
• Site Renovations

35,130

• (35,130)

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget Slavens PTA 129,242 2.00 (129,242) (2.00)

• Sound Body Sound Mind

262,863

• (262,863)
• Sound Body Sound Mind Part II

11,161

• (11,161)
• Sound Body, Sound Mind, Anschutz

1,048

• (1,048)
• Spirit Of The Season

41,438

• (41,438)
• Staff Retreat - Smith

(230)

• 230
• Start Grant Match 3972

67

• (67)
• Strengthening Neighborhoods

3,004

• (1,004)
• 2,000
• Student Board Office Ed-Supplemental

32,500

• (32,500)
• Student Emergency Loan - Casey

10,000

• 10,000
• Student Emergency Loan - Piton

30,000

• 30,000
• Summer Camp

(1)

• 1
• Summer College Program - CSU

1,272

• (1,272)
• Summer Leadership - Principals

(132)

• 132
• Summer Scholars

(4,563)

• 4,563
• Superfoods

1,141

• (1,141)
• Support For The RBI

49,436

• (6,530)
• 42,906
• Susan Murdy Charitable Fund

15,000

• (15,000)
• Target Field Trips

1,365

• (1,365)
• Target Grant

(177)

• 177
• Target Reading Recovery

50,000

• (50,000)
• Tax Help Colorado

3,019

• (3,019)
• Teacher Quality Partnership DU

404,350 2.15 88,319 1.00 492,669 3.15 Teacher Recognition Award 1,004

• (1,004)
• Technology Academy

7,213

• (7,213)
• Technology Grant

7,941

• (7,941)
• The Broad Foundation

22,671

• (22,671)
• Tobacco Free & Health Schools

49

• (49)
• Together Green Conservation Fellow

1,851

• (1,851)
• Tony Grampsas Youth Services

11,605

• (11,605)
• Transition Team Donations

587

• (38)
• 549
• Transportation Capital Equipment

459,637

• 44,641
• 504,278
• Traylor Afterschool Program

634

• (634)
• Tuition Based

9,856,948 93.90 2,345,625 26.90 12,202,573 120.80 Tulsa Community Foundation 4,902

• (4,902)
• Tutoring Grant

5,000

• (5,000)
• UCAN Serve

1,111

• (1,111)
• Unification Initiative

20,000

• (20,000)
• Venoco Grant

964

• (964)
• Wallace Grant

2,500,000 10.25 293,504 5.60 2,793,504 15.85

Special Revenue Fund 29 Project

FY 11-12 Amended Budget Adjustments FY 12-13 Adopted Budget Waller Vocal Music Program Grant 18,034

• (18,034)
• Walton Office Of School Reform

894,018 1.75 (894,018) (1.75)

• Walton Transition Grants

1,657,782 3.30 (1,657,782) (3.30)

• Water Utility Science Program

10,598

• (10,598)
• Wellness Coordinator

2,471

• (2,471)
• Wellness In DPS

16,481

• (16,481)
• Wellness Program

12,262

• (12,262)
• Wellness Team Sponsorship

15,608

• (15,608)
• Wells Fargo Foundation Grant

4,700

• (4,700)
• Westerra Grant

3,290

• (3,290)
• Whiz Kids Tutoring

19,330

• (19,330)
• Whole Foods Grant

19,831

• (19,831)
• Will & Jada Smith Family Award

1,765

• (1,765)
• Williams Foundation

2,568

• (2,568)
• WISC/Pathways

15,000

• (15,000)
• Undesignated

331,317 1.00 (331,317)

• Total Expenditures & Reserves

49,488,416 257.49 (16,088,185) (14.86) 33,400,231 242.63 Other Resources Dollars FTEs Dollars FTEs Dollars FTEs Interfund Transfers (xfers to other funds)

• Interfund Transfers (xfer from Fund 10) - EGOS Second Chance
• Interfund Transfers (xfer from Fund 10) - Middle/High School Athletics

1,950,000

• 600,000
• 2,550,000
• Interfund Transfers (xfer from Fund 10) - New Teacher Project

259,755

• 259,755
• Interfund Transfers (xfer from Fund 10) - Tuition Based ECE

2,600,000

• 1,162,734
• 3,762,734
• Interfund Transfers (xfer from Fund 13) - General Projects

(1,170,112)

• 1,170,112
• Interfund Transfers (xfer from Fund 16) - ML Kindergarten
• Interfund Transfers (xfer from Fund 24) - EGOS Second Chance
• Total Interfund Transfers

3,639,643

• 2,932,846
• 6,572,489

ProComp Trust Special Revenue Fund

 Beginning Balance

– Decrease of $7.6 million due to increased salary and bonus payouts in FY2011-12

 Revenues and Expenditures

– Decreased expectation for the rate of return on portfolio – Revenue from Mill Levy now recorded as revenue directly in ProComp Fund

• Prior practice was to record revenue in General Fund and transfer the funds via Interfund Transfer

– Increased Mill Levy revenue due to CPI increase of 1.8% – The budget presented herein shows expenses equal to projected FY2012-13 revenue

 Ending Balance

– The budget for ProComp Trust is preliminary pending finalization and approval by the Transition Team and the ProComp Trust Board – Due to expenses equal to projected revenue, there is no change to fund balance at this time

• 52 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 67,287,770 (7,606,062) 59,681,708

• 59,681,708

Local Support Property Taxes 28,067,617 406,520 28,474,137

• 28,474,137

Specific Ownership Taxes

• Other Local Support

4,247,947 (667,045) 3,580,902

• 3,580,902

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Current Year Revenues

32,315,564 (260,525) 32,055,039

• 32,055,039

Total Available Resources 99,603,334 (7,866,587) 91,736,747

• 91,736,747

Expenditures Employee Salaries 32,940,449 (6,775,218) 26,165,231

• 26,165,231

Employee Benefits 5,396,471 (856,362) 4,540,109

• 4,540,109

Purchased Services 301,344 (157,044) 144,300

• 144,300

Charter Schools

• Supplies & Materials

1,283,362 (77,963) 1,205,399

• 1,205,399

Property

• Other Expenses
• Debt Service Interest
• Debt Service Principal
• Total Current Year Expenditures

39,921,626 (7,866,587) 32,055,039

• 32,055,039

Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Current Year Expenditures & Other Resources

39,921,626 (7,866,587) 32,055,039

• 32,055,039

Appropriated Reserves - Assigned Site Assigned Reserves

• Total Appropriations

39,921,626 (7,866,587) 32,055,039

• 32,055,039

Unappropriated Reserves - Unassigned Other Reserves 59,681,708

• 59,681,708
• 59,681,708

ProComp Trust Special Revenue Fund 75

Pupil Activity Fund

 Beginning Balance

– No planned changes in beginning balance

 Revenues and Expenditures

– No planned changes in revenue however $100,000 is anticipated from ticketed events and unpredictability may lead to variances – Planned decrease of $180,000 in supplies associated with improved inventory controls

• 53 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 659,643

• 659,643
• 659,643

Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

470,000

• 470,000
• 470,000

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Current Year Revenues

470,000

• 470,000
• 470,000

Total Available Resources 1,129,643

• 1,129,643
• 1,129,643

Expenditures Employee Salaries 1,444,161 13,834 1,457,995

• 1,457,995

Employee Benefits 186,853 88,002 274,855

• 274,855

Purchased Services 384,674 55,026 439,700

• 439,700

Charter Schools

• Supplies & Materials

388,399 (184,627) 203,772

• 203,772

Property 40,000

• 40,000
• 40,000

Other Expenses 92,390 47,610 140,000

• 140,000

Debt Service Interest

• Debt Service Principal
• Total Current Year Expenditures

2,536,477 19,845 2,556,322

• 2,556,322

Other Resources Interfund Transfers

• Transfer In From Other Funds

(1,966,477) (19,845) (1,986,322)

• (1,986,322)

Total Current Year Expenditures & Other Resources 570,000

• 570,000
• 570,000

Appropriated Reserves - Assigned Site Assigned Reserves

• 559,643

559,643

• 559,643

Total Appropriations 570,000 559,643 1,129,643

• 1,129,643

Unappropriated Reserves - Unassigned Other Reserves 559,643 (559,643)

• Pupil Activity Fund 23

Bond Redemption Fund

 Beginning Balance

– Sufficient reserves must be maintained in bond redemption fund to satisfy bond sinking fund requirements and to fund debt service through the subsequent property tax collection period. Reduction of $7.2 million due to timing of debt service payments schedule

 Revenues and Expenditures

– Planned increase in Property Taxes of $6.3 million necessary to establish sufficient reserves to satisfy bond sinking fund requirements and to fund debt service through the subsequent property tax collection period – FY2011-12 included revenue and expenditures to refinance of a portion of General Obligation bonds to more favorable terms that is not expected to be repeated in Fiscal year 2012-13, including adjustments to Other Miscellaneous Revenue, Purchased Services and Other Expense – Planned decrease of $3.3 million in debt service due to debt service requirements as specified in bond documents

• 54 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 66,657,069 (7,294,499) 59,362,570

• 59,362,570

Local Support Property Taxes 67,000,000 6,272,652 73,272,652

• 73,272,652

Specific Ownership Taxes

• Other Local Support

100,000 50,000 150,000

• 150,000

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous 146,041,251 (146,041,251)

• Total Current Year Revenues

213,141,251 (139,718,599) 73,422,652

• 73,422,652

Total Available Resources 279,798,320 (147,013,098) 132,785,222

• 132,785,222

Expenditures Employee Salaries

• Employee Benefits
• Purchased Services

1,289,780 (1,224,780) 65,000

• 65,000

Charter Schools

• Supplies & Materials
• Property
• Other Expenses

145,623,553 (145,623,553)

• Debt Service Interest & Fees

49,702,417 (1,629,765) 48,072,652

• 48,072,652

Debt Service Principal 24,200,000 (1,730,000) 22,470,000

• 22,470,000

Total Current Year Expenditures 220,815,750 (150,208,098) 70,607,652

• 70,607,652

Other Resources

• Interfund Transfers

120,000 30,000 150,000

• 150,000

Transfer In From Other Funds

• Total Current Year Expenditures & Other Resources

220,935,750 (150,178,098) 70,757,652

• 70,757,652

Appropriated Reserves - Assigned Site Assigned Reserves

• Total Appropriations

220,935,750 (150,178,098) 70,757,652

• 70,757,652

Unappropriated Reserves - Unassigned Other Reserves 58,862,570 3,165,000 62,027,570

• 62,027,570

Bond Redemption Fund 31

Capital Reserve Fund

 Beginning Balance

– FY2012-13 beginning balance increased to reflect additional transfer of $10M in FY2011-12. $10M reserve secured for contingency due to pending 2012 Bond election

 Revenues and Expenditures

– There is no change use of fund balance at this time – Additional revenue projected from cell towers, Stapleton 3, Principal and Interest from Gove sale and sale of Children’s Museum property – Decrease in debt service principal and interest due to final payment of 1996 COPs in December 2011 – Increase in Property expenses due to purchase of new school busses for Transportation – Increase in Purchased Services due to the addition of rental expenses of Evie Dennis, Colorado Heights University and Samsonite

 Ending Balance

– Increase due to $10 million unappropriated reserve held until after the 2012 election results

• 55 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 10,459,652 (416,187) 10,043,465 7,498,534 17,541,999 Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

3,892,500 1,428,500 5,321,000

• 5,321,000

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Revenues

3,892,500 1,428,500 5,321,000

• 5,321,000

Total Available Resources 14,352,152 1,012,313 15,364,465 7,498,534 22,862,999 Expenditures Employee Salaries 2,792,624 122,648 2,915,272

• 2,915,272

Employee Benefits 793,444 104,359 897,803

• 897,803

Purchased Services 5,173,837 1,168,007 6,341,844

• 6,341,844

Charter Schools

• Supplies & Materials

5,011,194 (342,623) 4,668,571

• 4,668,571

Property 1,461,141 1,721,359 3,182,500

• 3,182,500

Other Expenses

• Debt Service Interest & Fees

82,138 (75,193) 6,945

• 6,945

Debt Service Principal 2,300,000 (2,059,000) 241,000

• 241,000

Total Current Year Expenditures 17,614,378 639,557 18,253,935

• 18,253,935

Other Resources Interfund Transfers

• Transfer In From Other Funds

(21,346,725) 10,000,000 (11,346,725)

• (11,346,725)

Total Current Year Expenditures & Other Resources (3,732,347) 10,639,557 6,907,210

• 6,907,210

Appropriated Reserves - Assigned Site Assigned Reserves 10,000,000 (10,000,000)

• Total Appropriations

6,267,653 639,557 6,907,210

• 6,907,210

Unappropriated Reserves - Unassigned Other Reserves 8,084,499 372,756 8,457,255 7,498,534 15,955,789

Capital Reserve Fund 43

Building Fund

 Beginning Balance

– Decrease of $42 million due to timing of projects and bond sales

 Revenues and Expenditures

– Project plans fewer projects in 2012-13 creating a decrease of $20 million in property expense

 Ending Balance

– Ending fund balance reflects use of $41 million as projects are planned to be completed within FY2012-13

• 56 -

FY 11-12 Amended Budget * Adjustments FY 11-12 Revised Amended Budget ** Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 143,662,954

• 143,662,954

(59,371,111) 84,291,843 (42,904,202) 41,387,641 Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

562,000

• 562,000

(312,000) 250,000

• 250,000

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Revenues

562,000

• 562,000

(312,000) 250,000

• 250,000

Total Available Resources 144,224,954

• 144,224,954

(59,683,111) 84,541,843 (42,904,202) 41,637,641 Expenditures Employee Salaries 5,599,500

• 5,599,500

(125,899) 5,473,601

• 5,473,601

Employee Benefits 1,361,013

• 1,361,013

(23,919) 1,337,094

• 1,337,094

Purchased Services 2,673,335 1,367,370 4,040,705 (2,246,305) 1,794,400

• 1,794,400

Charter Schools

• Supplies & Materials

2,396,672

• 2,396,672

(702,872) 1,693,800

• 1,693,800

Property 47,902,591 41,536,832 89,439,423 (37,905,132) 51,534,291 (20,210,545) 31,323,746 Other Expenses

• 15,000

15,000

• 15,000

Debt Service Interest & Fees

• Debt Service Principal
• Total Current Year Expenditures

59,933,111 42,904,202 102,837,313 (40,989,127) 61,848,186 (20,210,545) 41,637,641 Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Current Year Expenditures & Other Resources

59,933,111 42,904,202 102,837,313 (40,989,127) 61,848,186 (20,210,545) 41,637,641 Appropriated Reserves - Assigned Site Assigned Reserves

• Total Appropriations

59,933,111 42,904,202 102,837,313 (40,989,127) 61,848,186 (20,210,545) 41,637,641 Unappropriated Reserves - Unassigned Other Reserves 84,291,843 (42,904,202) 41,387,641 (18,693,984) 22,693,657 (22,693,657)

• *The "FY 11-12 Amended Budget" column reflects the budget presented on 4/12/12 to Finance and Audit Committee

**The "FY 11-12 Revised Amended Budget" incorporates changes since 4/12/12

Building Fund 41, 45, 46, 47 and 48

Food Services Fund

 Beginning Balance

– Decrease of $1.6M due to increased expenses in FY2010-11

 Revenues and Expenditures

– Reduction to food expense and corresponding revenue due to 8 fewer schools enrolling in the fresh fruit and vegetable program – Reduction to food expense and corresponding revenue due to reduction of grass-fed beef, buffalo and other high cost menu options

 Ending Balance

– Ending fund balance reflects a use of $3.1M. Efforts to decrease expenditures and gain additional resources through grants are ongoing with the goal to rebuild fund balance and reserves

• 57 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 4,858,604 (1,639,238) 3,219,366

• 3,219,366

Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

3,059,222 (359,222) 2,700,000

• 2,700,000

State Support State Equalization

• State Revenue

265,160

• 265,160
• 265,160

Charter School Capital Construction

• Federal Support

Prior Year Federal Revenue

• Other Federal Support

26,693,708 (400,032) 26,293,676

• 26,293,676

Other Support Other Miscellaneous

• Total Revenues

30,018,090 (759,254) 29,258,836

• 29,258,836

Total Available Resources 34,876,694 (2,398,492) 32,478,202

• 32,478,202

Expenditures Employee Salaries 11,617,812 763,519 12,381,331

• 12,381,331

Employee Benefits 3,863,097 (628,727) 3,234,370

• 3,234,370

Purchased Services 628,800 29,200 658,000

• 658,000

Charter Schools

• Supplies & Materials

16,783,874 (1,464,764) 15,319,110

• 15,319,110

Property 406,500 69,000 475,500

• 475,500

Other Expenses 411,000 (57,228) 353,772

• 353,772

Debt Service Interest

• Debt Service Principal
• Total Current Year Expenditures

33,711,083 (1,289,000) 32,422,083

• 32,422,083

Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Other Resources
• Total Current Year Expenditures & Other Resources

33,711,083 (1,289,000) 32,422,083

• 32,422,083

Appropriated Reserves - Assigned Site Assigned Reserves

• 56,119

56,119

• 56,119

Total Appropriations 33,711,083 (1,232,881) 32,478,202

• 32,478,202

Unappropriated Reserves - Unassigned Other Reserves 1,165,611 (1,165,611)

• Food Services Funds 51‐53

Warehouse Internal Service Fund

 Beginning Balance

– Beginning balance associated with the increase in IKON revenue that will carry over to FY2012-13

 Revenues and Expenditures

– Reduction of supplies and staff associated with warehouse is due to fewer schools/departments utilizing warehouse inventory – Increased Other Expenses for IKON due to increased utilization by schools/departments

• 58 -

FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 285,026 52,529 337,555

• 337,555

Local Support

• ‐
• Property Taxes
• Specific Ownership Taxes
• Other Local Support

2,710,000 (828,432) 1,881,568

• 1,881,568

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Revenues

2,710,000 (828,432) 1,881,568

• 1,881,568

Total Available Resources 2,995,026 (775,903) 2,219,123

• 2,219,123

Expenditures Employee Salaries 490,341 (120,710) 369,631

• 369,631

Employee Benefits 153,394 (39,725) 113,669

• 113,669

Purchased Services 289,200 (65,740) 223,460

• 223,460

Charter Schools

• Supplies & Materials

1,671,445 (526,637) 1,144,808

• 1,144,808

Property 105,620 (75,620) 30,000

• 30,000

Other Expenses

• 337,555

337,555

• 337,555

Debt Service Interest

• Debt Service Principal
• Total Current Year Expenditures

2,710,000 (490,877) 2,219,123

• 2,219,123

Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Expenditures & Other Resources

2,710,000 (490,877) 2,219,123

• 2,219,123

Appropriated Reserves - Assigned Site Assigned Reserves

• Total Appropriations

2,710,000 (490,877) 2,219,123

• 2,219,123

Unappropriated Reserves - Unassigned Other Reserves 285,026 (285,026)

• Warehouse Internal Service Fund 61

Self-Insurance Internal Service Fund

 Beginning Balance

– Projected to decrease due to a reduction of fund balance during FY2011-12

 Revenues and Expenditures

– Expenses projected to increase $734k due to increased workers compensation costs – Revenue from general fund projected to increase reflecting increased projected expenses and decreased beginning fund balance

• 59 -

mt FY 11-12 Amended Budget Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 5,595,417 (4,088,762) 1,506,655

• 1,506,655

Local Support Property Taxes

• Specific Ownership Taxes
• Other Local Support

4,792,412 4,130,491 8,922,903

• 8,922,903

State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Revenues

4,792,412 4,130,491 8,922,903

• 8,922,903

Total Available Resources 10,387,829 41,729 10,429,558

• 10,429,558

Expenditures Employee Salaries 518,056 55,630 573,686

• 573,686

Employee Benefits 133,118 13,861 146,979

• 146,979

Purchased Services 7,955,000 807,332 8,762,332

• 8,762,332

Charter Schools

• Supplies & Materials

92,500 (37,500) 55,000

• 55,000

Property 179,000 (105,000) 74,000

• 74,000

Other Expenses 3,500 500 4,000

• 4,000

Debt Service Interest

• Debt Service Principal
• Total Current Year Expenditures

8,881,174 734,823 9,615,997

• 9,615,997

Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Other Resources
• Appropriated Reserves - Assigned

Site Assigned Reserves

• 813,561

813,561

• 813,561

Total Appropriations 8,881,174 1,548,384 10,429,558

• 10,429,558

Unappropriated Reserves - Unassigned Other Reserves 1,506,655 (1,506,655)

• Self Insurance Internal Service Fund 64

DoTS Services Fund

 Beginning Balance

– The beginning fund balance in this fund is more properly accounted for in Fund 13. As a result, Fund 13 will have a corresponding increase for the transferred balance

 Revenues and Expenditures

– Increasing operating expense and revenue from $75,000 to $125,000 due to Apple software application needs across District – Due to increased usage of new IPAD’s in Title 1 schools for Tango Reading assessment, and general District classroom usage, DoTS maintains the Volume Purchasing procedure for IPAD apps purchased across the District. FY2011-12 was the first year of implementation – expense and revenue exceeded $36,000 initial estimate

 Ending Balance

– No change is expected to the fund balance as budgeted revenue equals expense

• 60 -

FY 11-12 Revised Amended Budget ** Adjustments FY 12-13 Proposed Budget Adjustments FY 12-13 Adopted Budget Revenues Beginning Balance 323,576

• 323,576

(323,576)

• Local Support

Property Taxes

• Specific Ownership Taxes
• Other Local Support

75,000 111,361 186,361 (61,361) 125,000 State Support State Equalization

• State Revenue
• Charter School Capital Construction
• Federal Support

Prior Year Federal Revenue

• Other Federal Support
• Other Support

Other Miscellaneous

• Total Revenues

75,000 111,361 186,361 (61,361) 125,000 Total Available Resources 398,576 111,361 509,937 (384,937) 125,000 Expenditures Employee Salaries

• Employee Benefits
• Purchased Services
• Charter Schools
• Supplies & Materials
• Property

217,766 292,171 509,937 (384,937) 125,000 Other Expenses

• Debt Service Interest
• Debt Service Principal
• Total Current Year Expenditures

217,766 292,171 509,937 (384,937) 125,000 Other Resources Interfund Transfers

• Transfer In From Other Funds
• Total Current Year Expenditures & Other Resources

217,766 292,171 509,937 (384,937) 125,000 Appropriated Reserves - Assigned Site Assigned Reserves

• Total Appropriations

217,766 292,171 509,937 (384,937) 125,000 Unappropriated Reserves - Unassigned Other Reserves 180,810 (180,810)

• DoTS Internal Service Fund 66

Appendix C FY2012-13 Proposed Budget Appropriations and Resolutions

• 61 -
• 61 -

FY2012-13 Proposed Budget Appropriations

General Fund $709,464,258 Government Designated Purpose Grants $114,990,582 Special Revenue Fund $26,643,018 ProComp Trust Special Revenue Fund $32,055,039 Pupil Activity Fund $1,129,643 Bond Redemption Fund $70,757,652 Building Fund $61,848,186 $41,637,641 Capital Reserve Fund $6,907,210 Food Services Fund $32,478,202 Self‐Insurance Internal Service $10,429,558 Warehouse Internal Service Fund $2,219,123 Technology (DoTS) Internal Service Fund $509,937 $125,000 Private Purpose (Trust) Fund $8,977,551 Governmental Permanent Fund $122,924 Student Activity Fund $6,657,477

• 62 -
• 62 -

1. Intra-Fund Borrowing Authorization 2. Interest-Free Loan Program 3. TABOR Emergency Reserve 4. Setting Tuition Rates 5. Amending the Proposed Budget 6. Authorizing the Use of the Beginning Fund Balance 7. Adopting the Budget 8. Approving the Adopted Budget Appropriations 9. Identification and Filing

• 10. Parameters for Refunding of Series 2011A COPs
• 11. General Obligation bonds - Master Refunding Bond

FY2012-13 Adopted Budget Resolutions

• 63 -

Resolution 1 Intra-Fund Borrowing

Meeting Date: May 17, 2012 Subject: Intra Fund Borrowing Authorization Sponsor/Department: Financial Services Action Sought: Approval item Contact: David D. Hart, Chief Financial Officer Phone: 720-423-3490 Approved by: Legal Review: Key Considerations: To meet anticipated cash flow deficits in the General Fund, school districts are to utilize any other available cash and investments in other district funds which can be used to alleviate general fund cash deficits; this would include capital and insurance reserve fund balances, any other cash that is not legally segregated or pledged by contract or rule of the State Board of Education and the proceeds of short-term debt issued or anticipated to be issued by the district or by the State on behalf of the district for working capital purposes. The Board of Education must adopt a resolution to authorize such a borrowing. For FY 2012-2013, it is anticipated that the Self-Insurance Internal Service Fund and the Capital Reserve Fund will have up to $11 million and $15 million, respectively, of unencumbered moneys available at any time during some portion of the year. In addition, it is anticipated that the Special Revenue Fund and the Government Designated Purpose Grants Fund will have up to $19 million and $10 million, respectively, of unencumbered moneys available at any time during some portion of the year. Budget/Staff Impact: None Required Recommendations: The Board approve the resolution authorizing the Chief Financial Officer to borrow unencumbered money from other district funds authorized by Colorado statutes.

• 64 -

Presented on May 7, 2012

Financial Services May 7, 2012 Authority to Borrow TO: Tom Boasberg, Superintendent THRU: David Suppes, Chief Operating Officer FROM: David D. Hart, Chief Financial Officer DATE: May 7, 2012 SUBJECT: Resolution Authorizing the Chief Financial Officer to Borrow Unencumbered Money from Other District Funds Authorized by Colorado Statutes BACKGROUND Beginning with FY 1992-1993, the Denver Public Schools has participated in the State Treasurer’s Interest-Free Loan Program. This Program came about as a result of the change in fiscal years for school districts and the change in the School Finance Act funding stream. In order to delay what the State foresaw as a projected “cliff” in the state’s ability to fund the then School Finance Act, (1) beginning January 1, 1992, school districts fiscal years were to end in June 30 instead of December 31, and (2) to cover expenditures for the eighteen-month period, January 1, 1992, through June 30, 1993, the State required school districts that receive over 50% of their School Finance Act funding from property taxes to rely on property taxes due in 1992 and 1993 and on state equalization payments received from July 1992 through June 1993. No state equalization payments were received from January 1992 through June 1992. The inevitable result was that school districts used up their available cash funds, had significant drops in investment earnings and were in a position of having to borrow funds to meet their monthly expenditures. Because of the potential cost impact to school districts to borrow funds, school districts pushed for the State to implement an interest-free loan program. School districts are able to submit applications to the State beginning in July to borrow funds interest-free during the month to meet projected cash deficits and are to repay the loan beginning in March as funds become available, with the final loan repayment due in late June of the same fiscal year. In order to participate in the State Treasurer’s Interest-Free Loan Program to meet anticipated cash flow deficits in the General Fund, school districts are to first utilize “any other available cash and investments in other district funds which can be used to alleviate general fund cash deficits; this would include capital and insurance reserve fund balances, any other cash that is not legally segregated or pledged by contract

• r rule of the State Board of Education and the proceeds of short-term debt issued or anticipated to be

issued by the district or by the State on behalf of the district for working capital purposes”. The State Treasury’s bond counsel in September 1994 ruled that the TABOR emergency reserve should not be counted as available funds. Last year, the Board of Education authorized the Chief Financial Officer to borrow during FY 2011-2012 up to $11 million, $15 million, $19 million, and $10 million dollars that may exist in the Self-Insurance Internal Service Fund, the Capital Reserve Fund, the Special Revenue Fund, and the Government Designated Purpose Grants Fund, respectively, all to be repaid before June 30,

• 2012. For the benefit of the General Fund, the most that has been borrowed from these funds in the

aggregate at any one time during the 2011-2012 fiscal year has been $16.0 million. The District participated in the State Interest-Free Loan program during the months of July 2011 through March 2012, borrowing a total of $81,874,574 all of which has been repaid.

BORROWING AUTHORIZATION FOR FY 2012-2013 According to state statutes (C.R.S. 22-44-113), the Board of Education “may borrow unencumbered moneys from any one fund, except the bond redemption fund, for the use of another fund at any time”. Such loan must be repaid no later than three months after the beginning of the FY 2013-2014 budget year. The Board of Education must adopt a resolution to authorize such a borrowing. For FY 2012-2013, it is anticipated that the Self-Insurance Internal Service Fund and the Capital Reserve Fund will have up to $11 million and $15 million, respectively, of unencumbered moneys available at any time during some portion of the year. In addition, it is anticipated that the Special Revenue Fund and the Government Designated Purpose Grants Fund will have up to $19 million and $10 million, respectively, of unencumbered moneys available at any time during some portion of the year. SUGGESTED MOTION I MOVE THE APPROVAL OF RESOLUTION NO.__________AUTHORIZING THE CHIEF FINANCIAL OFFICER TO BORROW UNENCUMBERED MONEY FROM OTHER DISTRICT FUNDS AUTHORIZED BY COLORADO STATUTES.

RESOLUTION AUTHORIZING THE CHIEF FINANICAL OFFICER TO BORROW UNENCUMBERED MONEY FROM OTHER DISTRICT FUNDS AUTHORIZED BY COLORADO STATUTES WHEREAS CRS 22-44-113 authorizes the borrowing of unencumbered moneys from any one fund, except the Bond Redemption Fund, and WHEREAS in order to meet ongoing obligations of the General Fund it may be necessary to borrow fifty-five million dollars at any time during some portion of the year, and WHEREAS estimated unencumbered moneys not to exceed eleven million dollars, fifteen million dollars, nineteen million dollars, and ten million dollars may exist in the Self- Insurance Internal Service Fund, the Capital Reserve Fund, the Special Revenue Fund, and the Government Designated Purpose Grants Fund, respectively, at any time during some portion of FY 2012-2013, NOW, THEREFORE, BE IT RESOLVED: The Board authorizes the borrowing of up to eleven million dollars, fifteen million dollars, nineteen million dollars, and ten million dollars from unencumbered moneys of the Self- Insurance Internal Service Fund, the Capital Reserve Fund, the Special Revenue Fund, and the Government Designated Purpose Grants Fund, respectively, at any time during some portion of the year for the benefit of the General Fund effective July 1, 2012, such moneys to be repaid to said funds not later than June 30, 2013.

Resolution 2 Interest-Free Loan Program

Meeting Date: May 17, 2012 Subject: Authorize District Participation in State Treasurer's Interest Free Loan Program Sponsor/Department: Financial Services Action Sought: Approval Item Contact: David D. Hart, Chief Financial Officer Phone: 720-423-3490 Approved by: Legal Review: Key Considerations: The District has estimated the anticipated Taxes and other revenues to be credited to the General Fund and the budgeted expenditures to be made from the General Fund in Fiscal Year 2012-13 and has concluded that cash flow management problems will occur during such period because the Taxes will not be received in time to pay the District’s projected budgeted expenses. In accordance with the Loan Program Statutes and upon approval of an application to participate, the State Treasurer will make available to the District in any month of the budget year interest-free loans from the proceeds of Loan Program Notes to alleviate the cash flow deficits. A Loan cannot be made to the District unless the District has demonstrated, through the submission of actual or projected financial or budgetary statements required by the State Treasurer, that a General Fund cash deficit will exist for the month in which the Loan has been requested and the District's ability to repay the Loan by June 25, 2013. Budget/Staff Impact: None required Recommendations: The Board approve the resolution authorizing the District to participate in the State Interest Free Loan Program.

• 65 -

4826-2227-4063.1

Presented on May 7, 2012 CERTIFIED RECORD OF PROCEEDINGS OF THE BOARD OF EDUCATION OF

School District No. 1, City and County of Denver, State of Colorado

RELATING TO A RESOLUTION AUTHORIZING THE DISTRICT’S PARTICIPATION IN THE STATE TREASURER’S INTEREST-FREE LOAN PROGRAM FOR COLORADO SCHOOL DISTRICTS

TABLE OF CONTENTS (For convenience of reference only) Page i

4826-2227-4063.1

ARTICLE I DEFINITIONS Section 1.01. Incorporation of Preambles .............................................................................. 2 Section 1.02. Definitions........................................................................................................ 2 Section 1.03. Rules of Construction ...................................................................................... 4 ARTICLE II AUTHORIZATION TO ISSUE DISTRICT NOTE AND PARTICIPATE IN LOAN PROGRAM, GENERAL TERMS AND PROVISIONS OF THE DISTRICT NOTE AND FORM OF DISTRICT NOTE Section 2.01. Authorization ................................................................................................... 4 Section 2.02. Maturity, Principal Amount and Interest on Defaulted Note ........................... 4 Section 2.03. Execution and Delivery.................................................................................... 5 Section 2.04. Early Repayment .............................................................................................. 5 Section 2.05. Form of District Note ....................................................................................... 6 Section 2.06. District Disclosure ........................................................................................... 6 Section 2.07. No Transfer of District Note ............................................................................ 6 Section 2.08. No Joint Obligation .......................................................................................... 6 ARTICLE III ISSUANCE CONDITION, LOANS AND CASH FLOW REPORTING Section 3.01. Condition to Issuance of District Note............................................................. 6 Section 3.02. Loans ................................................................................................................ 6 Section 3.03. Projected Cash Flows and Ongoing Reporting ................................................ 7 ARTICLE IV SECURITY FOR AND PAYMENT UNDER THE DISTRICT NOTE Section 4.01. Security for and Payment of the District Note ................................................. 7 Section 4.02. Authority to Pledge and Assign Note Payments .............................................. 8 Section 4.03. No Parity or Superior Cash Flow Obligations ................................................. 8 ARTICLE V REPRESENTATIONS AND COVENANTS ................................................................................ 8

ii

4826-2227-4063.1

ARTICLE VI DEFAULTS AND REMEDIES Section 6.01. Defaults and Remedies .................................................................................. 10 Section 6.02. Limitation on Waivers ................................................................................... 11 ARTICLE VII AUTHORIZATION OF ADDITIONAL ACTIONS ................................................................... 11 ARTICLE VIII PROVISIONS OF GENERAL APPLICATION Section 8.01. Amendments .................................................................................................. 12 Section 8.02. Preservation and Inspection of Documents.................................................... 12 Section 8.03. Parties in Interest............................................................................................ 12 Section 8.04. No Recourse Against Officers ....................................................................... 12 Section 8.05. Proceedings Constitute Contract .................................................................... 12 Section 8.06. Limited Liability ............................................................................................ 13 Section 8.07. Severability .................................................................................................... 13 Section 8.08. Headings ........................................................................................................ 13 Section 8.09. Authorized Officers ....................................................................................... 13 Section 8.10. Effective Date ................................................................................................ 13 EXHIBIT A - FORM OF DISTRICT NOTE EXHIBIT B - PROJECTED CASH FLOW FOR DISTRICT FOR FISCAL YEAR 2012-13

4826-2227-4063.1

State of Colorado Interest-Free Loan Program School District Local Proceedings Certificate

School District No. 1, City and County of Denver, State of Colorado

As the Secretary or Assistant Secretary of the Board of Education of the above- referenced School District (the “District”), I do hereby certify that: 1. Attached is a true and correct copy of a resolution (the “Resolution”) adopted by the Board of Education (the “Board”) of the District at a regular or special meeting held on the date indicated on the signature page to the Resolution. The Resolution authorizes the participation by the District in the Colorado State Treasurer’s Interest-Free Loan Program for the District’s fiscal year 2012-13. 2. Such meeting was duly noticed and all proceedings relating to the adoption of the Resolution were conducted in accordance with all applicable bylaws, rules and resolutions

• f the District, in accordance with the normal procedures of the District relating to such

matters, and in accordance with applicable constitutional provisions and statutes of the State of Colorado. 3. The Resolution was duly moved, seconded and adopted at such meeting by the affirmative vote of a majority of the members of the Board as follows: Board Member Yes No Absent Abstaining [Check action taken by Board Member.] Mary Seawell, At Large, President ____ ____ ____ ____ Happy Haynes, At Large, Vice President ____ ____ ____ ____ Nate Easley, Jr., District 4, Secretary ____ ____ ____ ____ Anne Rowe, District 1, Treasurer ____ ____ ____ ____ Arturo Jimenez, District 5 ____ ____ ____ ____ Jeannie Kaplan, District 3 ____ ____ ____ ____ Andrea Merida, District 2 ____ ____ ____ ____ 4. The Resolution was duly approved by the Board, signed by the President or Vice President of the Board, sealed with the District’s seal, attested by the Secretary or Assistant Secretary of the Board and recorded in the minutes of the Board. 5. The above certifications are being made by me in my official capacity as the Secretary or Assistant Secretary of the District, as evidenced by my signature this ____ day

• f ______________ 2012.

By ______________________________________ [sign above] as Secretary or Assistant Secretary Printed Name _____________________________ [print the name of the person signing above]

4826-2227-4063.1

RESOLUTION NO. ______ A RESOLUTION AUTHORIZING THE PARTICIPATION BY THE DISTRICT IN THE STATE TREASURER’S INTEREST-FREE LOAN PROGRAM FOR COLORADO SCHOOL DISTRICTS AND BORROWING UNDER SUCH PROGRAM IN AN AGGREGATE PRINCIPAL AMOUNT UP TO $142,300,000 ; ESTABLISHING THE TERMS AND PROVISIONS OF LOANS TO THE DISTRICT PURSUANT TO SUCH PROGRAM; PROVIDING FOR THE PAYMENT OF AND SECURITY FOR SUCH LOANS; AND AUTHORIZING THE EXECUTION, DELIVERY AND ACCEPTANCE OF DOCUMENTS IN CONNECTION WITH THE LOANS. WHEREAS, this District is a school district, political subdivision and body corporate, duly organized and existing under the laws of the State (capitalized terms in these preambles shall have the meanings set forth in Section 1.02 of this Resolution, except as otherwise indicated); and WHEREAS, the District expects to receive Taxes and other revenues for Fiscal Year 2012-13 that are to be credited to the General Fund of the District; and WHEREAS, the District has estimated the anticipated Taxes and other revenues to be credited to the General Fund and the budgeted expenditures to be made from the General Fund in Fiscal Year 2012-13 and has concluded that cash flow management problems will occur during such period because the Taxes will not be received in time to pay the District’s projected budgeted expenses; and WHEREAS, pursuant to the Loan Program Statutes and upon approval of an application to participate, the State Treasurer is to make available to State school districts in any month of the budget year interest-free loans from the proceeds of Loan Program Notes to alleviate cash flow deficits; and WHEREAS, no Loan can be made to the District unless the District has demonstrated, through the submission of actual or projected financial or budgetary statements required by the State Treasurer, that a General Fund cash deficit will exist for the month in which the Loan is to be made and that the District has the ability to repay the Loan by June 25, 2013; and WHEREAS, in order to receive an interest-free Loan, the Chief Financial Officer of the District and the District Superintendent must present a request to the Board of Education to participate in the Loan Program and to have Loan Program Notes issued on its behalf, and the Board must approve or disapprove, by majority vote, the participation of the District in the Loan Program; and WHEREAS, upon approval by the Board, the Authorized Officers must certify to the State Treasurer the aggregate amount of Loan Program Notes which are to be issued by the State Treasurer on behalf of the District and thereafter, the Board is not required to give approval for an interest-free Loan made from proceeds of the Loan Program Notes up to the Maximum Principal Amount; and

2

4826-2227-4063.1

WHEREAS, the Board has found and determined that participating in the Loan Program is in the best interests of the District and its residents to alleviate its cash flow deficits, and that the District should become a Participant under the Loan Program; NOW, THEREFORE, BE IT RESOLVED BY THIS BOARD OF EDUCATION, AS FOLLOWS: ARTICLE I DEFINITIONS Section 1.01. Incorporation of Preambles. The preambles hereto are incorporated herein for all purposes. Section 1.02. Definitions. The following terms shall have the following meanings unless the text expressly or by necessary implication requires otherwise: “Authorized Officers” means the Superintendent of the District and the Chief Financial Officer of the District. “Board” means the Board of Education of the District. “Business Day” means any day on which financial institutions are open for business in the State. “Closing Date” means the first date on which there is issued a series of Loan Program Notes, a portion of the proceeds of which are to be used to fund the Loans, or such later date as may be agreed to by the State Treasurer. “Code” means the Internal Revenue Code of 1986, as amended from time to time, including all applicable regulations (final, temporary and proposed), rulings and decisions. “County Treasurer” means the treasurer of each county of the State in which the District imposes Taxes. “Default” means an event, act or occurrence which with notice or lapse of time, or both, would become an Event of Default hereunder. “Default Rate” means the interest rate, or the weighted average interest rate, paid by the State Treasurer on the Loan Program Notes. “Default Taxes” means ad valorem taxes on real and personal property received or to be received by the District after the Maturity Date that are required to be credited to the General Fund and that are available for payment of the Defaulted Note pursuant to Section 22-54- 110(2)(c) of the Colorado Revised Statutes. “Defaulted Note” means the District Note to the extent any of the Principal Amount remains unpaid on the Maturity Date. “District” means the school district of the State of Colorado identified as such on the signature page hereof and its successors by operation of law.

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“District Disclosure Document” means a document or set of documents, including any attachments, exhibits, addenda, supplements or amendments thereto, setting forth, among other matters, financial information regarding the District and information relating to this Resolution and the District’s obligations hereunder, but, for the purposes of this Resolution, does not include financial information regarding any other Participant or information relating to any other Participant’s obligations. “District Note” means the note issued by the District under this Resolution to evidence the obligation of the District to repay the Loans, which note shall not exceed the Maximum Principal Amount. References herein to the District Note shall include the Defaulted Note unless the context expressly or by necessary implication indicates otherwise. “Draw Down Dates” means, for each month, the seventh, seventeenth, and twenty- seventh day of such month, or such other day as may be mutually agreed to in writing by one of the Authorized Officers and the State Treasurer. If any of such days are not a Business Day, the Draw Down Date for such day shall be the next succeeding day which is a Business Day. “Event of Default” means any occurrence or event specified in Section 6.01 hereof. “Fiscal Year” means the fiscal year of the District currently commencing July 1 of each year. “Fiscal Year 2012-13” means the District’s fiscal year beginning July 1, 2012 and ending June 30, 2013. “General Fund” means the General Fund of the District established and maintained as required under State law. “Loan” or “Loans” means the aggregate amount of moneys loaned by the State Treasurer to the District from time to time from the proceeds of the Loan Program Notes. “Loan Program” means the State Treasurer’s Interest-Free Loan Program for Colorado School Districts authorized pursuant to the Loan Program Statutes. “Loan Program Statutes” means, collectively, Sections 29-15-112 and 22-54-110 of the Colorado Revised Statutes. “Loan Program Notes” means the tax and revenue anticipation notes issued from time to time during Fiscal Year 2012-13 by the State Treasurer on behalf of the Participants. “Maturity Date” means the maturity date of the District Note, being June 26, 2013. “Maximum Principal Amount” means the maximum aggregate principal amount evidenced by the District Note, which shall be the amount set forth in the title to this Resolution

• r such lesser amount as may be established in accordance with Section 2.02(a) hereof.

“Participants” means the various Colorado school districts that are participating in the Loan Program during Fiscal Year 2012-13, including the District.

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“Payment Obligation” means the Principal Amount of the District Note and, if the District Note is a Defaulted Note interest thereon at the Default Rate, until such amounts are paid in full. “Principal Amount” means, as of any time, the outstanding principal amount of the District Note, which amount shall equal the aggregate amount of the Loans made to the District which have not been repaid. “Resolution” means this resolution, as amended and supplemented from time to time. “State” means the State of Colorado. “State Treasurer” means the Treasurer of the State of Colorado. “Taxes” means ad valorem taxes on real and personal property received by the District on and after March 1, 2013, to and including June 30, 2013, that are required to be credited to the General Fund. Section 1.03. Rules of Construction. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context otherwise indicates, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies as well as natural persons. The use of the terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder,” and any similar terms refer to this Resolution. References to numbered Sections or to lettered Exhibits refer to the Sections of and Exhibits attached to this Resolution that bear those numbers or letters, respectively. All the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein, and to sustain the validity hereof. ARTICLE II AUTHORIZATION TO ISSUE DISTRICT NOTE AND PARTICIPATE IN LOAN PROGRAM, GENERAL TERMS AND PROVISIONS OF THE DISTRICT NOTE AND FORM OF DISTRICT NOTE Section 2.01. Authorization. The District is hereby authorized to participate in the Loan Program for Fiscal Year 2012-13. The District hereby authorizes the issuance and delivery

• f the District Note to the State Treasurer, in the Maximum Principal Amount, for the purpose of

enabling the payment of Fiscal Year 2012-13 expenses of the District when cash flow deficits

• ccur.

Section 2.02. Maturity, Principal Amount and Interest on Defaulted Note. (a) The District Note shall be issued in the form of a single note payable to the State Treasurer, the outstanding Principal Amount of which shall be equal to the Loans made by the State Treasurer to the District. The aggregate, outstanding Principal Amount

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4826-2227-4063.1

evidenced by the District Note shall not exceed the Maximum Principal Amount. The Maximum Principal Amount of the District Note shall, prior to the issuance thereof, be reduced from the amount set forth in the title to this Resolution to the maximum amount which qualifies for Loans under the Loan Program in the event that the amount set forth in the title is greater than the maximum qualifying amount. (b) The District Note shall be dated the date of its execution in accordance with Section 2.03 hereof, shall mature on the Maturity Date, and shall bear no interest on the

• utstanding Principal Amount through the Maturity Date. The State Treasurer is hereby

authorized to maintain records on behalf of the District which reflect the outstanding Principal Amount due under the District Note; such records shall reflect the date(s) and amount(s) of Loans to, and repayments of Loans by, the District. If the Principal Amount

• f the District Note is not paid in full to the State Treasurer on or prior to the Maturity

Date, the District Note shall become a Defaulted Note and the unpaid portion thereof shall bear interest thereafter at the Default Rate until all amounts due under the Defaulted Note are paid in full. (c) Both the principal of and interest (if any) on the District Note shall be payable in lawful money of the United States of America. Upon the Maturity Date of the District Note, if the Payment Obligation on the District Note has been paid in full, or upon such later date as all of the Payment Obligation has been paid in full, the State Treasurer shall mark the District Note as paid in full and shall return the District Note to the District. Section 2.03. Execution and Delivery. (a) The President of the Board is hereby authorized to have control of the District Note, and all necessary records and proceedings pertaining thereto, prior to the issuance and delivery of the District Note. (b) The District Note shall be executed on behalf of the District by the President

• r Vice President of the Board and attested by the Secretary or Assistant Secretary of the

Board, by their manual signatures, and the official seal of the District (if any) shall be impressed or placed in facsimile thereon. Such facsimile seal (if any) on the District Note shall have the same effect as if the official seal of the District had been manually impressed upon the District Note. (c) Subject to Section 3.01 hereof, the officers referenced in this Section shall, on

• r before the Closing Date, issue and deliver or cause to be delivered the District Note to

the State Treasurer in exchange for the right, during Fiscal Year 2012-13, to borrow from the State Treasurer an aggregate amount not to exceed the Maximum Principal Amount. In case any officer whose signature shall appear on the District Note shall cease to be such officer before the delivery of the District Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Section 2.04. Early Repayment. The Principal Amount of the District Note may be prepaid in whole or in part at any time prior to the Maturity Date.

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Section 2.05. Form of District Note. The form of the District Note shall be substantially as set forth in Exhibit A to this Resolution, which is incorporated herein for all purposes, and the blanks in such form shall be filled in with appropriate amounts and information. Section 2.06. District Disclosure. (a) The purpose of this Section is to provide compliance with applicable securities laws relating to disclosure of information regarding the District in connection with the execution and delivery by the State Treasurer of the Loan Program Notes and the participation in the Loan Program by the District. (b) The District agrees to provide to the State Treasurer demographic and financial information concerning the District relevant to the District’s obligations under this Resolution, and authorizes the State Treasurer to provide such information, on behalf

• f the District, to such other parties as the State Treasurer deems necessary and in the

best interests of the District in order to consummate the transactions contemplated herein and under the Loan Program. The District covenants that, with respect to the District’s

• perations or description as of the Closing Date and as of the date provided, whether

prior to or following the Closing Date, the information so provided will not contain any untrue statement of a material fact, and will not omit any material fact necessary to prevent such statements or information so provided, in light of the circumstances under which they are made, from being misleading. (c) The Authorized Officers of the District are hereby authorized and directed to certify as to the accuracy and completeness of each District Disclosure Document in the form set forth in the District’s covenant in paragraph (b) of this Section. Section 2.07. No Transfer of District Note. The District Note shall be payable to and registered in the name of the State Treasurer. The District Note is not subject to transfer. Section 2.08. No Joint Obligation. The Loan Program will include the issuance of notes of other Participants in addition to the District. The obligation of the District to make payments on or in respect to its District Note does not represent a joint obligation with any other Participant and is strictly limited to the Payment Obligation under this Resolution. ARTICLE III ISSUANCE CONDITION, LOANS AND CASH FLOW REPORTING Section 3.01. Condition to Issuance of District Note. Following the adoption of this Resolution and prior to any Loans being requested or made, in the event that the District is notified by the State Treasurer that the District has failed to comply with the Loan Program Statutes or any administrative rules of the State Treasurer regarding the Loan Program, no Loans shall be made and the District Note shall have no legal effect. Section 3.02. Loans. An aggregate amount up to but not exceeding the Maximum Principal Amount may be drawn upon and expended by the District from time to time to fund a General Fund cash flow deficit occurring during Fiscal Year 2012-13. The Authorized Officers

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are hereby authorized to certify to the State Treasurer the amount of the actual General Fund cash flow deficit with respect to each requested Loan. The District hereby acknowledges that the State Treasurer will disburse funds only on each Draw Down Date upon submittal, not less than the tenth Business Day of each month, of a requisition for the following three draws in the form and in the manner prescribed by the State Treasurer pursuant to the Loan Program. The Authorized Officers are hereby authorized and directed to provide the State Treasurer with payment instructions describing how such Loan disbursement will be paid to the District. Section 3.03. Projected Cash Flows and Ongoing Reporting. (a) In completing the General Fund cash flow projections attached as Exhibit B hereto, the beginning amount and the anticipated cash inflows during Fiscal Year 2012- 13 include all amounts that are “available for the payment” of General Fund expenditures

• f the District during Fiscal Year 2012-13. Amounts held in any District funds and

accounts are considered to be “available for the payment” of General Fund expenditures

• f the District to the extent that such amounts may be expended or used to pay such

expenditure and such funds and accounts need not be reimbursed under any legislative, judicial, Board or contractual requirement. Exhibit B hereto also contains a list of funds and accounts of the District which are not “available for payment” because such funds and accounts must be reimbursed under legislative, judicial, Board or contractual

• requirements. In addition, expenditures from such unavailable funds and accounts are not

included in the General Fund cash flow projections. The District hereby certifies that (i) in preparing the General Fund cash flow projections, the District has reviewed its General Fund cash flows for Fiscal Year 2011-12 and (ii) the District believes that the General Fund cash flow projections for Fiscal Year 2012-13 are best available estimates and are based upon reasonable assumptions. (b) The Authorized Officers are hereby authorized and directed to notify the State Treasurer if any information comes to the attention of either individual during Fiscal Year 2012-13 which would cause the General Fund cash flow projections to be

• inaccurate. Updated cash flow projections shall be provided by the District to the State

Treasurer as directed by the State Treasurer. (c) If the Authorized Officers reasonably determine that, following the Closing Date, the Maximum Principal Amount will be greater than the amount the District reasonably expects that it will need to fund its cash flow deficits, the Chief Financial Officer and Superintendent shall promptly advise the State Treasurer of the amount, if any, by which the Maximum Principal Amount exceeds the amount the District reasonably expects that it will need from the Loan Program to fund cash flow deficits during Fiscal Year 2012-13. ARTICLE IV SECURITY FOR AND PAYMENT UNDER THE DISTRICT NOTE Section 4.01. Security for and Payment of the District Note. The District Note shall be payable from and secured by a lien in the amount of the Payment Obligation on Taxes and such lien shall have priority over all other expenditures from such Taxes until the Payment Obligation shall have been paid in full. As security for the payment of the Payment Obligation,

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all Taxes received by the District shall be paid to the State Treasurer within one Business Day of receipt thereof until the Payment Obligation has been paid in full. Section 4.02. Authority to Pledge and Assign Note Payments. The District authorizes the State Treasurer to pledge and assign the District Note and all or any part of the District’s

• bligations hereunder and under the District Note to secure the payment of the Loan Program
• Notes. No assignment or pledge under the preceding sentence shall ever be made or given in

such manner as would cause the amount of the Payment Obligation to be greater, or to be payable at times that are different, than as expressly stated and agreed to herein. Section 4.03. No Parity or Superior Cash Flow Obligations. Notwithstanding any

• ther provision hereof, the District shall not issue notes or other obligations for cash flow

purposes that are payable from the Taxes or Default Taxes or that are secured by a lien on the Taxes or Default Taxes that is superior to or on a parity with the lien of the District Note. ARTICLE V REPRESENTATIONS AND COVENANTS Except as otherwise disclosed by one of the Authorized Officers to the State Treasurer as set forth in paragraph (j) of this Article, the District hereby represents and covenants as follows: (a) The District is a political subdivision duly organized and existing under and by virtue of the laws of the State of Colorado and has all necessary power and authority to (i) adopt the Resolution, (ii) participate in the Loan Program and (iii) issue the District Note. (b) Upon the issuance of the District Note, the District will have taken all action required to be taken by it to authorize the issuance and delivery of the District Note and the performance of its obligations thereunder, and the District has full legal right, power and authority to issue and deliver the District Note. (c) The District will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Resolution and in the District

• Note. The District will promptly pay or cause to be paid the principal of and interest (if

any) on the District Note when due and at the place and manner prescribed herein. (d) The District is duly authorized under the laws of the State of Colorado to issue the District Note; all action prerequisite to the lawful issuance and delivery of the District Note has been duly and effectively taken; and the District Note and this Resolution are and will be legal, valid and enforceable obligations of the District, enforceable against the District in accordance with their respective terms. (e) Proper officers of the District charged with the responsibility of issuing the District Note are hereby directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the Closing Date and stating whether there are any facts, estimates or circumstances that would materially change the District’s current expectations.

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(f) After the discovery by the District of any Event of Default or Default hereunder, the District will, as soon as possible and in any event within two Business Days after such discovery by the District, furnish to the State Treasurer a certificate of

• ne of the Authorized Officers of the District setting forth the details of such Event of

Default or Default and the action which the District proposes to take with respect thereto. (g) The District will deliver to the State Treasurer: (i) such financial data as the State Treasurer may reasonably request (including, without limitation, any information relating to Taxes, expenses, other revenues, available funds, tax rolls, financial statements, budget and cash flow), and (ii) if requested, copies of the District’s audited year-end financial statements, budgets, official statements and similar information issued by it to the public. The District will permit the State Treasurer, or any person designated by the State Treasurer in writing, at the expense of the State Treasurer or such designated person, to examine the books and financial records of the District and make copies thereof or extracts therefrom, and to discuss the affairs, finances and accounts of the District with any officer or employee of the District, all at such reasonable times and as

• ften as the State Treasurer or such designated person may reasonably request.

(h) The District will not make, or permit to be made, any use of the proceeds of the Loan, or of any moneys treated as proceeds of the Loan within the meaning of the Code, or take, permit to be taken, or fail to take any action, which would adversely affect the exclusion from gross income of the interest on the Loan Program Notes by the holders or owners thereof under Section 103 of the Code. (i) Except as otherwise provided pursuant to paragraph (j) of this Article, all representations and recitals contained in this Resolution are true and correct, and that the District and its appropriate officials have duly taken, or will take, all proceedings necessary to be taken by them (if any) for the levy, receipt, collection and enforcement of the Taxes available for the payment of its District Note in accordance with law for carrying out the provisions of this Resolution and the District Note. (j) The following representations are true and correct unless, prior to the Closing Date, one of the Authorized Officers of the District notify the State Treasurer in writing to the contrary: (i) Neither the issuance of the District Note, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby, conflicts with, results in a breach of or violates any of the terms, conditions, or provisions of any law, regulation, court decree, resolution, agreement or instrument to which the District is subject or by which the District is bound, or constitutes a default under any of the foregoing. (ii) The District has experienced an ad valorem property tax collection rate of not less than 90% of the aggregate amount of ad valorem property taxes levied within the District in each of the most recent five Fiscal Years, and the District, as of the date of adoption of this Resolution and on the date of issuance

• f the District Note, reasonably expects to collect at least 90% of such amount for

Fiscal Year 2012-13.

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(iii) The District has not defaulted within the past five years, and is not currently in default, on any debt or material financial obligation. (iv) The District’s most recent audited financial statements present fairly the financial condition of the District as of the date thereof and the results of

• peration for the period covered thereby. Except as has been disclosed to the

State Treasurer, there has been no change in the financial condition of the District since the date of such audited financial statements that will in the reasonable

• pinion of the District materially impair its ability to perform its obligations under

this Resolution and the District Note. (v) The District Disclosure Documents, other disclosures by the District pursuant to Section 2.06 hereof, and cash flow projections and ongoing reports pursuant to Section 3.03 hereof, have been and will be prepared consistent with generally accepted accounting principles as applicable to governmental

• entities. Further, the District’s budget and financial accounting policies and

procedures are in compliance with State law, including but not limited to, Title 22, Articles 44 and 45, of the Colorado Revised Statutes. (vi) There is no action, suit, proceeding, inquiry or investigation at law

• r in equity, before or by any court, arbitrator, governmental or other board, body
• r official, pending or, to the best knowledge of the District, threatened against or

affecting the District questioning the validity of any proceeding taken or to be taken by the District in connection with the District Note or this Resolution, or seeking to prohibit, restrain or enjoin the execution, delivery or performance by the District of any of the foregoing, or where an unfavorable decision, ruling or finding would have a materially adverse effect on the District’s financial condition or results of operations or on the ability of the District to conduct its activities as presently conducted or as proposed or contemplated to be conducted,

• r would materially adversely affect the validity or enforceability of, or the

authority or ability of the District to perform its obligations under, the District Note or this Resolution. ARTICLE VI DEFAULTS AND REMEDIES Section 6.01. Defaults and Remedies. (a) The occurrence of any of the following shall be an “Event of Default” with respect to the District Note and this Resolution: (i) a failure by the District to pay the Principal Amount in full under the District Note on or before the Maturity Date; (ii) the default by the District in the performance or observance of any covenant, agreement or obligation of the District under this Resolution (other than subparagraph (a)(i) of this Section) and the failure to cure such default within 10

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days after the earlier of the date that (A) the District furnishes notice of a default

• r (B) the District receives written notice of default from the State Treasurer;

(iii) Other than as provided in paragraph (j) of Article V herein, any warranty, representation or other statement by or on behalf of the District contained in this Resolution or in any certificate, requisition, report or any other instrument furnished in compliance with or in reference to this Resolution or the District Note is false or misleading in any material respect; or (iv) the District shall (A) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of itself or of its property, (B) admit in writing its inability to pay its debts generally as they become due, (C) make a general assignment for the benefit of creditors, or (D) be adjudicated a bankrupt or insolvent. (b) If an Event of Default has occurred and is continuing pursuant to subparagraph 6.01(a)(i), the statutory remedy of the State Treasurer is to notify the County Treasurer that the District is in default on its obligation to pay its Payment Obligation and the amount of the Payment Obligation. Pursuant to the Loan Program Statutes, the County Treasurer thereafter shall withhold any Default Taxes to be received by the District and in the possession of the County Treasurer in the amount of such unpaid Payment Obligation, and transmit such moneys to the State Treasurer. If the amount of Default Taxes to be received by the District and in the possession of the County Treasurer at the time such notice is given is less than the amount of the Payment Obligation, the County Treasurer shall withhold additional Default Taxes to be received by the District and in the possession of the County Treasurer until such time as the Payment Obligation has been paid to the State Treasurer in full. (c) Upon the occurrence of any Event of Default, the State Treasurer may take any action at law or in equity to enforce the performance or observance of any other

• bligation, agreement or covenant of the District, and to enforce the levy, liens, pledges

and security interests granted or created under this Resolution. No remedy herein conferred upon or reserved to the State Treasurer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in

• equity. No delay or omission to exercise any right or power occurring upon any default

shall impair any such right or power or be construed to be a waiver thereof, and all such rights and powers may be exercised as often as may be deemed expedient. Section 6.02. Limitation on Waivers. If this Resolution is breached by the District and such breach is waived, such waiver shall be limited to the particular breach so waived and shall not be deemed a waiver of any other breach hereunder. ARTICLE VII AUTHORIZATION OF ADDITIONAL ACTIONS The Superintendent of the District and the Chief Financial Officer of the District are hereby designated as Authorized Officers under this Resolution, and they, each of the officers of

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the Board or any of them are authorized to take any and all action necessary to carry out and consummate the transactions described in or contemplated by the instruments approved hereby

• r otherwise to give effect to the actions authorized hereby and the intent hereof. Such authority

shall include the authority to submit an application to participate in the Loan Program to the State Treasurer and to certify to the accuracy and completeness of any materials and information regarding this District that may be used or useful in enabling the State Treasurer to obtain a credit rating on the Loan Program Notes or in the marketing of the Loan Program Notes. If any

• fficer, official or employee of the District whose signature shall appear on any certificate,

document or other instrument shall cease to be such officer following the execution of, but prior to the delivery of, such certificate, document or other instrument, such signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such

• ffice.

ARTICLE VIII PROVISIONS OF GENERAL APPLICATION Section 8.01. Amendments. This Resolution may be amended only with the written consent of the State Treasurer. Section 8.02. Preservation and Inspection of Documents. All documents received by the State Treasurer or the District under the provisions of this Resolution shall be retained in their respective possessions and shall be subject at all reasonable times to the inspection of the

• ther parties hereto and their assigns, agents and representatives, and of whom may make copies

thereof. Section 8.03. Parties in Interest. Nothing in this Resolution, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or party, other than the State Treasurer as the sole owner of the District Note any rights, remedies or claims under or by reason of this Resolution or any covenant, condition or stipulation hereof; and all covenants, stipulations, promises and agreements in this Resolution shall be for the sole and exclusive benefit of such parties as third party beneficiaries. Section 8.04. No Recourse Against Officers. All covenants, stipulations, promises, agreements and obligations contained in this Resolution shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the parties hereto, respectively, in their corporate capacities, and not of any member of the board of education, officer, employee or agent of the parties hereto in an individual capacity, and no recourse shall be had for the payment

• f the District’s Payment Obligation or for any claim based thereon or under this Resolution

against any member, officer, employee or agent of the parties hereto, provided such individual is acting within the scope of their employment or trusteeship and without gross negligence, willful misconduct or malfeasance of office. Section 8.05. Proceedings Constitute Contract. The provisions of the District Note and of this Resolution shall constitute a contract between the District and the State Treasurer, and such provisions shall be enforceable by mandamus or any other appropriate suit, action or proceeding at law or in equity in any court of competent jurisdiction, and shall be irrepealable until the Payment Obligation is paid in full.

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Section 8.06. Limited Liability. Notwithstanding anything to the contrary contained herein, in the District Note or in any other document mentioned herein or related to the District Note, the District shall not have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby except to the extent of its Payment Obligation with respect to the District Note and to the extent of any liability incurred by the State, including without limitation rebate requirements attributable to the Loan Program Notes, as a direct consequence of the District’s fraud or gross negligence in preparing or presenting its financial statements or District Disclosure Documents. Section 8.07. Severability. If any one or more of the covenants, stipulations, promises, agreements or obligations provided in this Resolution should be determined by a court of competent jurisdiction to be contrary to law, then such covenant, stipulation, promise, agreement

• r obligation shall be deemed and construed to be severable from the remaining covenants,

stipulations, promises, agreements and obligations herein contained and shall in no way affect the validity of the other provisions of this Resolution. Section 8.08. Headings. Any headings preceding the text of the several articles and sections hereof, and any table of contents or marginal note appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Resolution, nor shall they affect its meaning, construction or effect. Section 8.09. Authorized Officers. Whenever under the provisions of this Resolution the approval of the District is required or the District is required to take some action, such approval or such request may be given for the District by the Authorized Officers of the District, and the State Treasurer shall be authorized to rely upon any such approval or request. Section 8.10. Effective Date. This Resolution shall be in force and effect from and after its passage on the date shown below. APPROVED AND ADOPTED this ____ day of ___________, 2012. __________________________________________

[Insert name of School District above]

[DISTRICT SEAL] By President, Board of Education Attest: By Secretary, Board of Education

4826-2227-4063.1

EXHIBIT A FORM OF DISTRICT NOTE Name of School District: School District No. 1, City and County of Denver, State

• f Colorado

Maximum Principal Amount: $142,300,000 FOR VALUE RECEIVED, the above-referenced school district (the “District”), a political subdivision and body corporate of the State of Colorado (the “State”), hereby promises to pay to the Treasurer of the State (the “State Treasurer”) from Taxes, no later than June 26, 2013, the Principal Amount, which shall not exceed the Maximum Principal Amount stated above, with no interest accruing thereon; provided however, that in the event the Principal Amount is not paid in full on June 26, 2013, interest shall accrue on the unpaid Principal Amount at the Default Rate (as each such capitalized term and other capitalized terms used but not defined herein are otherwise defined in the Resolution referenced in the following paragraph). This Note is issued by the Board of Education of the District, on behalf of the District, in accordance with a Resolution (the “Resolution”) of the Board of Education of the District duly adopted prior to the issuance hereof. The above recital shall be conclusive evidence of the validity and the regularity of the issuance of this Note after its delivery for value. Principal of this Note is payable in immediately available funds only to the State

• Treasurer. This Note is subject to prior prepayment by the District in whole or in part at any

time prior to the Maturity Date. This Note is nontransferable but may be assigned and pledged by the State Treasurer to secure the Loan Program Notes of the State Treasurer issued on behalf

• f the District. All of the terms, conditions and provisions of the Resolution are, by this

reference thereto, incorporated herein as part of this Note. It is hereby certified, recited and warranted that all acts, conditions and things required to be done, occur or be performed precedent to and in the issuance of this Note have been done, have occurred and have been performed in due form and manner as required by law, including the Loan Program Statutes, and that the obligations represented by this Note do not contravene any constitutional or statutory debt limitation of the District. IN TESTIMONY WHEREOF the Board of Education of the District has caused this Note to be executed on the date indicated below, with the manual signature of its President or Vice President, attested with the manual signature of its Secretary or Assistant Secretary, and sealed with a facsimile or manual seal of the District. [DISTRICT SEAL] _________________________________________ Dated: _____________________ By: President, Board of Education Attest: By Secretary, Board of Education END OF FORM OF DISTRICT NOTE

4826-2227-4063.1

EXHIBIT B PROJECTED CASH FLOW FOR DISTRICT FOR FISCAL YEAR 2012-13

FY 12/13

Denver - Pro Forma

Annual Total 25.541 FY 11/12 School Finance Act Levy $10,200,816,964 FY 11/12 Assessed Value (exclude Tax Increment District AV) $10,085,765,837 FY 12/13 projected Assessed Value (exclude Tax Increment District AV)

• 1.13%

Assessed Value Growth 75,004.5 FY 11/12 Funded Pupil Count 76,437.9 FY 12/13 projected Funded Pupil Count 1.91% Pupil Growth $6,868.29 FY 12/13 projected Per Pupil Total Program Funding $524,997,443 FY 12/13 projected Total Program Funding Update Resolution $142,294,259 $249,989,074 (plus) Current Month State Equalization Payment $257,600,545 (plus) Current Month Property Taxes (School Finance Act Portion Only) $49,100,000 (plus) Current Month Hold Harmless, and Override Property Taxes $17,407,824 (plus) Current Month Specific Ownership Taxes (School Finance Act Portion Only) $11,398,475 (plus) Current Month Other Specific Ownership Taxes (Other Than From School Finance Act) $125,952,213 (plus) Current Month Other General Fund Revenue $125,176,297 (plus) Current Month Other Funds Revenue (see note 2 below) $8,750,252 (plus) Current Month Other Capital Reserve and/or Risk Mgmt./Insurance Reserve Revenue (Exclude GF Transfers Into) $845,374,680 Current Month Revenue $465,571,196 (less) Current Month Salaries Expense (General Fund) - exclude charter schools $56,537,059 (less) Current Month Benefits Expense (General Fund) - include district share only - exclude charter schools $160,825,677 (less) Current Month Other General Fund Expenses $45,055,192 (less) Current Month Salaries Expense (Other Funds) - exclude charter schools $7,594,968 (less) Current Month Benefits Expense (Other Funds) - include district share only - exclude charter schools $63,191,620 (less) Current Month Other Funds Expense (see note 2 below) $19,182,857 (less) Current Month Capital Reserve and/or Risk Mgmt./Insurance Reserve Expense (less) Current Month Deposit To Note Repayment Account $63,200,765 (less) Charter School Transfer (Net) $881,159,334 Current Month Expenses

Resolution 3 Tabor Emergency Reserve

Meeting Date: May 17, 2012 Subject: Fund TABOR Emergency Reserve with Real Property for the Fiscal Year beginning July 1, 2012 Sponsor/Department: David D. Hart Action Sought: Approval Contact: David D. Hart Phone: 720-423-3409 Approved by: David Suppes Legal Review: Key Considerations: The Board of Education will be asked to approve the designation of real property owned by the district as a portion of the district's TABOR emergency reserve in accordance with the section 20(5) of article X of the state’s constitution (aka “TABOR”) and Section 22-44- 105(1)(c.5) of the Colorado Revised Statutes. Budget/Staff Impact: None required Recommendations: The Board approve the resolution authorizing the District to approve the designation of real property owned by the district as a portion of the district's TABOR emergency reserve.

• 66 -

4835-7322-3683.2

Presented on May 7, 2012 Financial Services May 17, 2012 TABOR Emergency Reserve

TO: Tom Boasberg, Superintendent THRU: Suppes, Chief Operating Officer FROM: David Hart, Chief Financial Officer DATE: May 17, 2012 SUBJECT: Fund TABOR Emergency Reserve with Real Property for the Fiscal Year beginning July 1, 2012 REQUIRED TABOR EMERGENCY RESERVE In accordance with the section 20(5) of article X of the state’s constitution (aka “TABOR”), Section 22- 44-105(1)(c.5) of the Colorado Revised Statutes (“C.R.S.”), and the DPS’ Board of Education’s Contingency Reserve Policy (Policy DAB), the District maintains an emergency reserve equal to 3% of its fiscal year spending, excluding bonded indebtedness (the “TABOR Emergency Reserve”). In respect of managing for the TABOR Emergency Reserve, 22-44-105(1)(c.5) of the statutes states: The budget shall ensure that the school district holds unrestricted general fund or cash fund emergency reserves in the amount required under the provisions of section 20 (5) of article X of the state constitution except that, if a board of education provides for a district emergency reserve in the general fund for the budget year, established at an amount equal to at least three percent of the amount budgeted to the general fund, the board may: (I) Designate real property

• wned by the district as all or a portion of the reserve required by section 20 (5) of article X of

the state constitution… Keeping with past practice and in a manner consistent with the state constitution, statue and Board policy, the Proposed Budget for FY2012-13 contemplates the substitution of real estate in lieu of cash-funding the TABOR Emergency Reserve. . MAY 17, 2012 BOARD ACTION Staff recommends for the budget year beginning July 1, 2012: (a) the Board of Education designate real property owned by the District as a portion of the District’s TABOR Emergency Reserve, with the specific property, and substitutions for such property, being selected by the Chief Financial Officer with the advice of the District’s General Counsel and the District’s bond counsel, Kutak Rock LLP; (b) the Board of Education provide for an emergency reserve in the General Fund established at an amount equal to at least 3% of the amount budgeted to the General Fund; and (c) the Board of Education file with the State Treasurer and the State Department of Education a letter of intent in the form of Annex A hereto expressing the intent of the Board of Education to increase the liquidity of the real property designated as

4835-7322-3683.2

part of the district’s tabor emergency reserve upon the occurrence of an emergency (as defined in TABOR) by entering into one or more lease-purchase agreements with respect to such property or by

• ther means acceptable to the State Treasurer.

SUGGESTED MOTION I MOVE THAT: (1) THE BOARD OF EDUCATION DESIGNATE REAL PROPERTY OWNED BY THE DISTRICT AS A PORTION OF THE DISTRICT’S TABOR EMERGENCY RESERVE IN ACCORDANCE WITH SECTION 22-44-105(1)(c.5) OF THE COLORADO REVISED STATUTES; (2) THE DISTRICT’S CHIEF FINANCIAL OFFICER, WITH THE ADVICE OF COUNSEL, SELECT SUCH PROPERTY AND ANY SUBSTITUTE PROPERTY; (3) THE BOARD OF EDUCATION PROVIDE FOR AN EMERGENCY RESERVE IN THE GENERAL FUND, ESTABLISHED AT AN AMOUNT EQUAL TO AT LEAST 3% OF THE AMOUNT BUDGETED TO THE GENERAL FUND; AND (4) THE PRESIDENT OF THE BOARD OF EDUCATION EXECUTE AND FILE WITH THE STATE TREASURER AND THE STATE DEPARTMENT OF EDUCATION THE LETTER OF INTENT REQUIRED.

4835-7322-3683.2

Annex A

May __, 2012 Colorado State Treasurer Colorado Department of Education Designation of real property as part of the TABOR Emergency Reserve of School District No. 1, in the City and County of Denver and State of Colorado, for the fiscal year beginning July 1, 2012 This letter is delivered to you pursuant to Section 22-44-105(1)(c.5)(I), C.R.S. for fiscal year beginning July 1, 2012, School District No. 1, in the City and County of Denver and State

• f Colorado, intends to designate real property as a part of the District’s emergency reserve for

purposes of satisfying reserve requirements defined in section 20(5) of article X of the Colorado Constitution. It is the intent of the Board of Education to increase the liquidity of such property upon the occurrence of a declared emergency (as defined in section 20 of article X of the Colorado Constitution) by entering into one or more lease-purchase agreements with respect to such property of by other means acceptable to the State Treasurer. Very truly yours, BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO By: Mary Seawell, President

Denver Public School Property Designated for Debt and Emergency Reserve Security Value Estimated as of 2/29/2012

June 1, 2012

Estimated Market Value Estimated Value Net of Outstanding Including GOB investment planned through 2013 GOB Investment through 2013 Property under Lease $1,238,451,314 $922,409,708 Property Designated for FY13 Tabor Reserve $31,752,346 $24,941,787 Maxwell Elementary $13,788,243 $13,076,214 Dora Moore Elementary $17,964,104 $11,865,573 Remaining Charter $107,801,646 $46,171,349 Elementary $851,266,493 $580,950,840 High $111,587,005 $13,440,198 Intensive Pathways $29,370,030 $25,103,318 K‐8 $201,990,119 $111,990,701 Middle $75,556,921 $39,051,571 Middle/High $32,015,985 $10,103,140 Other $137,114,086 $72,512,921 Vacant $53,984,717 $44,199,113 $1,600,687,002 $943,523,151 Total $2,870,890,663 $1,890,874,646

Denver Public School Property Designated for Debt and Emergency Reserve Security

June 1, 2011

Current Property under Lease and Associated Release Dates Cole Middle School Released Kunsmiller Middle School Released Gove Middle School Released Lake Middle School Released George Washington 12/15/17 Horace Mann Middle School Released Baker Middle School Released Fox Street Released Contemporary Learning Academy Released Hill Middle School Released Grant Middle School Released Merrill MS/Cory ES Released Knapp Elementary 12/15/24 Rishel Middle School Released Skinner Middle School Released Thomas Jefferson HS 12/15/24 North High School 12/15/24 Administration Bldg Released Hamilton Middle School 12/15/26 Hill Middle School 12/15/26 MLK Middle School Released Cole Middle School 12/15/27 Hamilton Middle School Released Horace Mann Middle School 12/15/28 Place Middle School/Bridge Academy 12/15/28

• A. Lincoln High School

Released Smiley Middle School Released Centennial Elementary 12/15/29 Henry Middle School 12/15/29 Manual High School Released Omar D. Blair/Wyatt Edison Charter‐Town Center 12/15/30 Morey Middle School 12/15/30 Career Education Center Released West High School Released Skinner Middle School 12/15/31 Cheltenham Elementary 12/15/31 John F. Kennedy HS Released Smiley Middle School/ Envision (Venture) Prep MS/HS 12/15/32 Thomas Jefferson HS Released East High School Released John F. Kennedy HS 12/15/33 Denver Center fo International Studies 12/15/33 Merrill MS/Cory ES 12/15/34 Martin Luther King MS & HS 12/15/34 Administration Bldg 12/15/35 Abraham Lincoln High, Mntc & Storage 12/15/35 Montbello High School 12/15/36 West High School/Manny Martinez MS 12/15/37 East High School 12/15/38 Career Education Center Middle College 12/15/38 Manual High School 12/15/38 South High School 12/15/38 Property Designated for Tabor Reserve for 2012‐13 Maxwell Elementary Dora Moore Elementary 2008B COP 1997 PCOP 2008's were replaced with the 2011's 2011A COP 2011B PCOP 2005's were replaced with the 2008's 2005A COP 2005B COP 2008A COP

Resolution 4 Setting Tuition Rates

Meeting Date: May 17, 2012 Subject: Set tuition rates for Non-Resident Students, Foreign Students and Special Education Services or the Fiscal Year beginning July 1, 2012 Sponsor/Department: David D. Hart Action Sought: Approval Contact: David D. Hart Phone: 720-423-3409 Approved by: David Suppes Legal Review: Key Considerations: Board Policy JFAB, Admission of Non-Residents, states in Section Two that after October 1, students residing in school districts within Colorado and outside of Denver may be enrolled in the Denver Public Schools subject to the conditions set forth in Section One and payment of tuition at a rate set annually by the Board of Education Board Policy JFABB, Admission of Non-immigrant Foreign Students, states that “Foreign students on an F-1 visa may only attend high schools within the district and are required by law to pay the district for the full-unsubsidized per capita cost for providing education to the student for the period of his or her attendance.” It also states that “Foreign students on a J-1 visa are not required by law to pay tuition”. Special education services provided by the Denver Public Schools to students of other school districts are billed to the other school districts Budget/Staff Impact: None required Recommendations: The Board approve the resolution authorizing the District to set and charge annual tuition rates.

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Presented on May 7, 2012 Financial Services May 17, 2012 Tuition Rates TO: Tom Boasberg, Superintendent THRU: David Suppes, Chief Operating Officer FROM: David D. Hart, Chief Financial Officer DATE: May 17, 2012 SUBJECT: Update to Selected Tuition Rates SUGGESTED MOTION I MOVE THAT THE TUITION RATES BE SET AT THE RECOMMENDED RATES WHICH ARE STATED IN THIS DOCUMENT. Tuition Rates for Non-Resident Students Board Policy JFAB, Admission of Non-Residents, states (1) in Section Two that “After October 1, students residing in school districts within Colorado and outside of Denver may be enrolled in the Denver Public Schools after review of the reasons for the request, subject to the conditions set forth in Section One above and payment

• f tuition at a rate set annually by the Board of Education” and (2) in Section Three that “Students residing in

school districts outside of Colorado who enroll on or before October 1, shall not be subject to tuition. After October 1, tuition shall be at a rate set annually by the Board of Education.” For the 2011-2012 school year, there was one student who paid the full-time tuition rate and none that paid the half-time tuition rate. The calculation for the tuition rate is based on the estimated CPI for 2011 as published by the Colorado Legislative Council. The rates for full-time students and half-time students for 2010-2011 were $1,856 and $928 and for 2011-2012 were $1,891 and $956, respectively. The rates calculated for 2012-2013 are $1,961 and $991 for full-time and half-time students, respectively, for a 3.7% increase from 2011-2012. Tuition Rates for Foreign Students Board Policy JFABB, Admission of Non-immigrant Foreign Students, states that “Foreign students on an F-1 visa may only attend high schools within the district and are required by law to pay the district for the full- unsubsidized per capita cost for providing education to the student for the period of his or her attendance.” It also states that “Foreign students on a J-1 visa are not required by law to pay tuition”.

For the 2011-2012 school year, there were no foreign students. Currently, the District is expecting to receive $6,733 of per pupil funding based on CDE estimates. Based on this projection, the FY12-13 tuition rate will be $3,366 per semester. If CDE revises per pupil funding before July 1, 2012, we will adjust the tuition rate accordingly.

Tuition Rates for Special Education Services Special education services provided by the Denver Public Schools to students of other school districts are billed to the other school districts. The amount of the billing depends on the services provided and in whose October count the student is included (i.e., receives the State per pupil operating revenue). The revenue received for the

current school year through February is $69,794. Following are the recommended daily rates for the 2012- 2013 school year. Disability Delivery In DPS October Count Not in DPS October Count Autistic Self Contained $99.90 $139.67 Cognitive Disability (CD) Self Contained $60.77 $100.54 Multiple Disability (MD) Self Contained $91.75 $131.52 Emotional Disability (ED) Self Contained $62.51 $102.28 Physical Disability (PD) Self Contained $58.51 $98.28 Preschool Disability (PSD) Self Contained $48.80 $88.57 Traumatic Brain Injury (TBI) Self Contained $93.82 $133.59 All Other Self Contained (except HD, ADD and ESY below) Self Contained $69.34 $109.11 All Hearing Disability (HD) All Settings $94.29 $134.06 All Disabilities served in Extended School Year (ESY) All Settings $0.00 $70.58 All Disabilities served in Mild/Moderate classroom Resource Itinerant Consult $58.94 $98.71 All Disabilities served by Alternative Placement Services (APS) Homebound $89.73 $129.50 Speech/Language (S/L) Itinerant Consult $53.76 $93.53

Resolution 5 Amending the Proposed Budget

ACTION Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012 RESOLUTION NO. __________ Amending the Proposed Budget for the Fiscal Year Beginning July 1, 2012, and Ending June 30, 2013 BE IT RESOLVED that the Proposed Budget for the fiscal year 2012-2013, be amended to include the modifications as set forth in the attached schedules as presented by the Superintendent on May 17, 2012.

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Resolution 6 Use of Beginning Fund Balance

• 69 -

ACTION

Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012

RESOLUTION NO. __________ Authorizing the Use of the the Fiscal Year Beginning July 1, 2012, and Ending June 30, 2013 WHEREAS, CRS 22-44-105 requires budgets adopted for fiscal years beginning July 1, 2003, not provide for expenditures, interfund transfers or reserves in excess of available revenues and beginning fund balances; WHEREAS, CRS 22-44-105 authorizes the use of a portion of the beginning fund balance in the proposed budget, subject to Board approval of a resolution stating the specific amount of beginning balance to be expended, the purpose for which the expenditure is needed, and the school district's plan to ensure that the use of the beginning fund balance will not lead to an

• ngoing deficit;

WHEREAS, the proposed budget for the General Fund contains expenditures of $36,248,806 from the beginning fund balance, of which $4,638,775 is use of 1998 and 2003 Mill Levy Reserves for their intended purposes, $8,561,885 of General Project funds none of which would lead to an ongoing deficit; WHEREAS, the proposed budget for the Government Designated Purposed Grants Fund contains expenditures of $603,958 from the beginning fund balance for grant programs, attributable to the timing of when expenditures occur, not for purposes that would lead to an ongoing deficit; WHEREAS, the proposed budget for the Special Revenue Fund contain expenditures of $2,575,339 from the beginning fund balance for various programs, attributable to the timing of when expenditures occur, not for purposes that would lead to an ongoing deficit;

Resolution 6 Use of Beg Fund Balance (cont.)

• 70 -

WHEREAS, the proposed budget for the Pupil Activity Fund includes expenditures of $100,000 of beginning fund balance for various projects, with such expenditures not leading to an ongoing deficit; WHEREAS, the proposed budget for the Building Fund includes expenditures of $61,598,186 $41,387,641 of beginning fund balance for various projects from the proceeds of the 2008 general obligation bond issue and related investment earnings with such expenditure not leading to an

• ngoing deficit;

WHEREAS, the proposed budget for the Capital Reserve Fund contains expenditures of $1,586,210 from the beginning fund balance for

• ne-time building projects, not for purposes that would lead to an ongoing deficit;

WHEREAS, the proposed budget for the Food Services Fund contains an expenditure of $3,163,247 from the beginning fund balance for the attributable to the timing if when expenditures occur, with such expenditures not leading to an ongoing deficit; WHEREAS, the proposed budget for the Self-Insurance Fund contains an expenditure of $1,580,665 $693,094 from beginning fund balance primarily for liability and worker's compensation claims. These expenditures are not anticipated to lead to an ongoing deficit; WHEREAS, the proposed budget for the Warehouse/Reproduction Internal Service Fund includes an expenditure of $337,555 from the beginning fund balance for Internal Services program purposes, with such expenditure not leading to an ongoing deficit; WHEREAS, the proposed budget for the DoTS Service Bureau Internal Service Fund includes an expenditure of $323,576 $0.00 from the beginning fund balance for Internal Services program purposes, with such expenditure not leading to an ongoing deficit; WHEREAS, the proposed budget for the Private Purpose (Trust) Fund contains expenditures of $675,034 from beginning fund balance for trust program purposes, with such expenditure not leading to an ongoing deficit; WHEREAS, the proposed budget for the Governmental Permanent Fund contains expenditures of $29,108 from beginning fund balance for trust program purposes, with such expenditure not leading to an ongoing deficit; NOW THEREFORE, BE IT RESOLVED: The Board authorizes the expenditure of a portion of the beginning fund balance of the General Fund, Government Designated Purposed Grants Fund, Special Revenue Fund, Pupil Activity Fund, ProComp Trust Fund, Building Fund, Capital Reserve Fund, Food Services Fund, Self-Insurance Fund, Warehouse/Reproduction Internal Service Fund, DoTS Service Bureau Internal Service Fund, Private Purpose (Trust) Fund, and Governmental Permanent Fund, respectively, during the fiscal year beginning July 1, 2012.

Resolution 7 Adopting the Budget

ACTION

Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012

RESOLUTION NO. __________ Adopting the Budget for the Fiscal Year Beginning July 1, 2012 and Ending June 30, 2013 BE IT RESOLVED BY THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1 IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO that the recommended budget for the ensuing fiscal year beginning July 1, 2012, and ending June 30, 2013, as presented at this meeting and as amended to this date, be, and it hereby is, adopted as the official budget of School District No. 1 in the City and County of Denver and State of Colorado for said fiscal year.

• 71 -

Resolution 8 Approving the Adopted Budget Appropriations

ACTION Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012

RESOLUTION NO. __________ Approving the Adopted Budget Appropriation for Expenditures During the Fiscal Year Beginning July 1, 2012, and Ending June 30, 2013

WHEREAS, THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1 IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO has duly adopted an official budget for the fiscal year beginning July 1, 2012, and ending June 30, 2013, as required by law; WHEREAS, said Board of Education has adopted a resolution certifying the amounts necessary to be raised from levies against the assessed valuation of all taxable property within said School District. No. 1 to defray expenditures through December 31, 2012, of the said next ensuing fiscal year; WHEREAS, said Board of Education is required by law to adopt a resolution appropriating the moneys to be expended during such ensuing fiscal year in each fund; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1 IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO that the amounts shown below be appropriated for the ensuing fiscal year beginning July 1, 2012, and ending June 30, 2013.

• 72 -

Resolution 8 Approving the Adopted Budget Appropriations

General Fund $709,464,258 Government Designated Purpose Grants $114,990,582 Special Revenue Fund $26,643,018 ProComp Trust Special Revenue Fund $32,055,039 Pupil Activity Fund $1,129,643 Bond Redemption Fund $70,757,652 Building Fund $61,848,186 $41,637,641 Capital Reserve Fund $6,907,210 Food Services Fund $32,478,202 Self-Insurance Internal Service $10,429,558 Warehouse Internal Service Fund $2,219,123 Technology (DoTS) Internal Service Fund $509,937 $125,000 Private Purpose (Trust) Fund $8,977,551 Governmental Permanent Fund $122,924 Student Activity Fund $6,657,477

• 73 -

Resolution 9 Setting Forth the Identification and Filing

ACTION Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012 RESOLUTION NO. __________ Setting Forth the Identification and Filing of Adopted Budget and Appropriation Resolution and Copies Thereof BE IT RESOLVED BY THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1 IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO that the following action be taken with respect to the Adopted Budget and Adopted Appropriation Resolution:

(1)

That the words “Adopted Budget”, and the name of the school district, the date of adoption, and the signature of the President of the Board be entered upon the Adopted Budget.

(2)

That a copy of the Adopted Budget and the Appropriation Resolution be placed on file with the Secretary of this District in her office in the School Administration Building, 900 Grant Street, Denver, Colorado and shall be open for inspection during reasonable business hours.

• 74 -

Resolution 10 Refunding 2011A VR COPs with Fixed Rate COPs

ACTION Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012 RESOLUTION NO. __________ Authorizing the Issuance of Fixed Rate Certificate’s of Participation For the Fiscal Year Beginning July 1, 2012, and Ending June 30, 2013

• 75 -

4839-6058-0879.3

RESOLUTION A RESOLUTION OF THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO, AUTHORIZING, SUBJECT TO SPECIFIED PARAMETERS AND CONDITIONS, (1) THE ISSUANCE OF ONE OR MORE SERIES OF NEW FIXED RATE CERTIFICATES OF PARTICIPATION TO REFINANCE THE OUTSTANDING TAXABLE CERTIFICATES OF PARTICIPATION IN A LEASE WITH DENVER PUBLIC SCHOOLS, VARIABLE RATE REFUNDING SERIES 2011A-1, A-2, A-3 AND A-4, (2) THE TERMINATION OF INTEREST RATE SWAPS, LETTERS OF CREDIT AND OTHER TRANSACTIONS AND AGREEMENTS CURRENTLY IN EFFECT WITH RESPECT TO THE 2011A VARIABLE RATE CERTIFICATES, (3) THE FUNDING OF A RESERVE FUND FOR THE NEW FIXED RATE CERTIFICATES AND (4) OTHER DOCUMENTS AND ACTIONS IN CONNECTION WITH THE FOREGOING. RECITALS

• A. On April 14, 2011, the Taxable Certificates of Participation in a Lease with Denver

Public Schools, Variable Rate Refunding Series 2011A-1, A-2, A-3 and A-4 (the “2011A Variable Rate Certificates”) were issued to refinance outstanding certificates of participation that were issued in 2008 to finance (or refinance certificates of participation issued to finance) the District’s unfunded actuarial accrued liability to its employee pension fund (the Denver Public Schools Retirement Association, which has merged into the Public Employee’s Retirement Association).

• B. On September 15, 2011, the Board of Education adopted a resolution (the “Prior

Approving Resolution”) to authorize the officers of the District to take the actions necessary or convenient to issue one or more series of certificates of participation to refinance all or a portion

• f the 2011A Variable Rate Certificates, subject to certain parameters set forth therein.
• C. Pursuant to the terms of the Prior Approving Resolution, the authority granted by

such resolution will expire on June 30, 2012.

• D. The Board of Education desires to authorize the continuation of the authority granted

by the Prior Approving Resolution.

• E. Accordingly, this Resolution is being adopted to authorize the officers of the District

to take the actions necessary or convenient to issue one or more series of new certificates of participation (collectively, the “New Certificates”; each such series is referred to as a “Series”) to refinance all or a portion of the 2011A Variable Rate Certificates if the “all-in true interest cost” (defined below) is 7.25% or less and if the other parameters described herein are satisfied.

4839-6058-0879.3

RESOLUTION BE IT RESOLVED BY THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO, AS FOLLOWS: Section 1. Approval of Refinancing of 2011A Variable Rate Certificates. The Board of Education hereby approves the refinancing of the 2011A Variable Rate Certificates with proceeds of one or more Series of New Certificates issued at one time or from time-to-time within the parameters described in Section 4 hereof and subject to the other terms of this Resolution. Section 2. Authorization of District Documents. The Board of Education hereby approves the forms of the District Documents described below with respect to each Series of New Certificates and authorizes the President of the Board of Education, the Secretary of the Board of Education and other officers and employees of the District to execute and deliver, and to affix the seal of the District to, the District Documents in the forms of the similar documents executed and delivered in connection with the issuance of the Taxable Certificates of Participation in a Lease with Denver Public Schools, Fixed Rate Refunding Series 2011B (the “2011B Fixed Rate Certificates”; and, together with the 2011A Variable Rate Certificates, the “2011A&B Certificates”), with such changes therein as the persons executing such documents determine, after consultation with the District’s staff, general counsel, financial advisors and bond counsel, are necessary or appropriate and consistent with the parameters described in Section 4 hereof and either are required by a rating agency or insurer or are to the benefit of, or not materially adverse to the interests of, the District. The “District Documents” with respect to each Series of New Certificates are: (a) a lease between the Denver School Facilities Leasing Corporation (the “Corporation”), as lessor, and the District, as lessee, in (each, a “Lease” and, collectively, the “Leases”) in the form, with changes permitted pursuant to this Section, of the 2011B Lease dated April 14, 2011 (the “2011B Lease”) between the Corporation, as lessor, and the District; (b) a special warranty deed from the District conveying to the Corporation the property that is leased pursuant to the Lease in the form, with changes permitted pursuant to this Section, of the special warranty deed from the District dated April 14, 2011 that was executed and delivered in connection with the issuance of the 2011A&B Certificates; (c) a continuing disclosure certificate pursuant to which the District agrees to provide certain financial and other information to the Municipal Securities Rulemaking Board in the form, with changes permitted pursuant to this Section, of the 2011B Continuing Disclosure Certificate dated April 14, 2011 that was executed and delivered in connection with the issuance of the 2011B Certificates; and (d) if less than all the 2011A Variable Rate Certificates are refinanced with proceeds of such Series of New Certificates, amendments to the documents relating to the 2011A Variable Rate Certificates to accommodate the partial refinancing.

4839-6058-0879.3

Section 3. Approval of Corporation Documents. The Board of Education hereby approves the forms of the Corporation Documents described below with respect to each Series of New Certificates in the forms of the similar documents executed and delivered in connection with the issuance of the 2011B Certificates, with such changes therein as the Superintendent’s designee, which for purposes of this Resolution is presumed to be the District’s Chief Financial Officer (such designee, the “CFO”), determines, after consultation with the District’s staff, general counsel, financial advisors and bond counsel, are necessary or appropriate and consistent with the parameters described in Section 4 hereof and either are required by a rating agency or insurer or are to the benefit of, or not materially adverse to the interests of, the District. The “Corporation Documents” with respect to each Series of New Certificates are: (a) a special warranty deed from the Corporation conveying to the District all

• r a portion of the property leased pursuant to the 2011A Lease, in the form, with

changes permitted pursuant to this Section, of the special warranty deed executed and delivered by the Corporation in connection with the issuance of the 2011A Variable Rate Certificates; (b) a Mortgage and Indenture of Trust between the Corporation and a commercial bank, as trustee (each, an “Indenture”), in the form, with changes permitted pursuant to this Section, of the 2011B Mortgage and Indenture of Trust dated April 14, 2011 (the “2011B Indenture”) between the Corporation and Wells Fargo Bank, National Association, as trustee; (c) certificates of participation in the forms, with changes permitted pursuant to this Section, of the certificates attached to the 2011B Indenture; (d) a Lease in the form, with changes permitted pursuant to this Section, of the 2011B Lease; (e) a certificate purchase agreement with respect to the purchase of each Series of New Certificates in the form, with changes permitted pursuant to this Section,

• f the 2011B Certificate Purchase Agreement dated April 5, 2011 among the

Corporation, Goldman Sachs & Co., RBC Capital Markets, LLC, J.P. Morgan Securities, LLC, Wells Fargo Bank, National Association and Piper Jaffray & Co.; (f) an amendment with respect to each Series of New Certificates to the Certificate Fund Forward Delivery Agreement between the Corporation and JPMorgan Chase Bank, National Association amending the Certificate Fund Forward Delivery Agreement dated as of February 12, 2003, as previously amended by the First Amendment to Certificate Fund Forward Delivery Agreement dated as of March 24, 2005, the Second Amendment to Certificate Fund Forward Delivery Agreement dated as

• f April 24, 2008 and the Third Amendment dated April 14, 2011 (the “Third

Amendment”), in the form, with changes permitted by this Section, of the Third Amendment; and

4839-6058-0879.3

(g) if less than all the 2011A Variable Rate Certificates are refinanced with proceeds of such Series of New Certificates, amendments to the documents relating to the 2011A Certificates Variable Rate Certificates to accommodate the partial refinancing. Section 4.

• Parameters. The District Documents and Corporation Documents

entered into with respect to each Series of New Certificates must conform to the following parameters: (a) The “all-in true interest cost” (defined below) of the Series of New Certificates may not exceed 7.25%. (b) The annual Base Rentals payable by the District pursuant to all the Leases may not exceed $35,000,000 during District fiscal years 2012-13 through 2016-17 or $49,000,000 during District fiscal years 2017-18 through 2037-38. If less than all the 2011A Variable Rate Certificates are refinanced with proceeds of a Series of New Certificates, the annual Base Rentals payable by the District pursuant to the related Lease shall not exceed a percentage of the amounts set forth in the preceding sentence determined by dividing the principal amount of 2011A Variable Rate Certificates refinanced with proceeds of such Series of New Certificates by the aggregate principal amount of the 2011A Variable Rate Certificates outstanding immediately prior to such refinancing. (c) The Scheduled Lease Term of the related Lease (as defined in such Lease) may not extend beyond the Scheduled Lease Term of the 2011A Lease (as defined in the 2011A Lease). (d) The Net Value (as defined in the related Indenture and determined on the date the Series of New Certificates is issued) of the property leased pursuant to the related Lease may not exceed 110% of the principal amount of such Series of New Certificates and may include any or all of the property released from 2011A Lease, any or all of the property listed in Exhibit A hereto or any combination thereof. (e) The Indenture pursuant to which such Series of New Certificates is issued may include a reserve fund in an amount not greater than 10% of the principal amount of such Series of New Certificates and funded with cash, securities or a surety bond if the District’s CFO determines, after consultation with the District’s staff, general counsel, financial advisors and bond counsel, that including such a reserve fund is in the interests

• f the District under market conditions on the date such Series of New Certificates is

priced. (f) All or a portion of such Series of New Certificates may be insured if the District’s CFO determines that the cost of such insurance is less than the present value of the additional interest that would be payable without such insurance. For purposes of this Section, “all-in true interest cost” of a Series of New Certificates is the discount rate that produces a net present value (computed using semiannual compounding and a 30/360-day year) for all scheduled payments of principal of and interest on and scheduled expenses included in Base Rentals to be incurred in connection with such Series of New

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Certificates equal to the principal amount of such Series of New Certificates, plus accrued interest, plus premium, less original issue discount, less insurance premium, less costs of issuance, less (or plus) any swap termination payment (or receipt), less any letter of credit termination payment and less any other costs incurred in connection with the issuance of such Series of New Certificates and the redemption of the 2011A Variable Rate Certificates refinanced with the proceeds of such Series of New Certificates. Section 5. Notices to Finance and Audit Committee and Board of Education. As required by the District's Debt Policy, if the parameters set forth in Section 4 hereof have been satisfied, the District’s CFO is hereby directed to notify the members of the Finance and Audit Committee that such parameters have been satisfied and as to whether or not a financing will be

• pursued. The District’s CFO is directed to notify the Board of Education when a financing is

commenced that is expected to be completed within the parameters set forth in Section 4 hereof and when a financing has been completed within such parameters. Notices pursuant to this Section shall be in writing (which may be accomplished by email) and by posting on the District’s Board Documents site. Notices with respect to a completed financing shall include a description of the manner in which each of the parameters set forth in clauses (a) through (f) of Section 4 hereof has been satisfied. Section 6. Official Statements. The Board of Education hereby approves the preparation, use and distribution of an Official Statement for each Series of New Certificates in the form of the Official Statement with respect to the 2011B Certificates, with such changes therein, not inconsistent with this Resolution, as are approved by the District’s CFO; authorizes the distribution and use of the Official Statements in connection with the offering and sale of the New Certificates; and authorizes the President of the Board of Education to execute the final Official Statements. Section 7. Termination of Letters of Credit, Swaps and Other Transactions and Documents Relating to 2011A Certificates. The Board of Education hereby approves the termination, in whole or in part and in accordance with the terms of the documents governing the same, of the letters of credit, swaps, remarketing agreements, reserve fund surety bonds and

• ther transactions and documents relating to any 2011A Certificates that are refinanced with

proceeds of New Certificates. Section 8. Additional Documents and Actions. The officers and employees of the District are authorized to take all action necessary or appropriate to carry out the provisions of this Resolution and the documents referred to herein and to carry out the transactions described herein or in such documents, including, without limitation, the execution and delivery of any certificates or other documents necessary or appropriate in connection with: the execution, delivery and performance of the District Documents or the Corporation Documents; any insurance or surety bond permitted by Section 4 hereof; certificates reasonably requested by the underwriters in connection with their purchase of the New Certificates; and the investment of the proceeds of the New Certificates and amounts on deposit in the funds and accounts established by the Indenture.

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Section 9. Adoption of Representations, etc. The Board of Education hereby adopts, as if set forth in full herein, all the representations, covenants, agreements, findings, determinations and statements of or by the District set forth in the District Documents. Section 10. Corporation’s Assignment of Rights and Delegation of Duties. The Board of Education hereby acknowledges and consents to the assignment by the Corporation of all the right, title and interest of the Corporation in, to and under each Lease, and the delegation by the Corporation of all duties of the Corporation under each Lease, pursuant to the related

• Indenture. The Board of Education hereby acknowledges and approves the assignment or sale

by the Corporation pursuant to each Indenture of proportionate interests in rights to receive certain payments under the related Lease. Section 11. Document Changes. The determination of the person executing any District Document that any change in such document from the form described herein is permitted by this Resolution shall be conclusive and binding and shall be evidenced by such person’s signature on such document. The determination of the District’s CFO that any change in any Corporation Document from the form described herein is permitted by this Resolution shall be conclusive and binding and shall be evidenced by the delivery of the executed Corporation Document in connection with the issuance of New Certificates. Section 12. Limitations on Obligations. Each Lease shall terminate on June 30 of any District fiscal year (a “Fiscal Year”) if the District has, on such date, failed, for any reason, to appropriate sufficient amounts authorized and directed to be used to pay all Base Rentals (as defined in the related Indenture) scheduled to be paid and all Additional Rentals (as defined in the related Indenture) estimated to be payable with respect to the Lease in the next ensuing fiscal year, and in certain other circumstances set forth in the Lease, and shall not constitute a mandatory charge or requirement against the District in any ensuing budget year unless the District decides to appropriate the amount necessary to avoid a termination. The New Certificates shall evidence assignments of proportionate undivided interests in certain payments pursuant to the related annually terminable Lease and shall be payable solely from the sources provided in such Lease. No provision of this Resolution, any Lease, any Indenture, any Official Statement or any other document or instrument described or referenced in or entered into pursuant to this Resolution shall be construed or interpreted: (a) to directly or indirectly obligate the District to make any payment in any Fiscal Year in excess of amounts appropriated for such Fiscal Year; (b) as creating a debt or multiple fiscal year direct or indirect debt or other financial

• bligation whatsoever of the District within the meaning of Article XI, Section 6 or Article X,

Section 20 of the Colorado Constitution or any other constitutional or statutory limitation or provision; (c) as a delegation of governmental powers by the District; (d) as a loan or pledge of the credit or faith of the District or as creating any responsibility by the District for any debt or liability of any person, company or corporation within the meaning of Article XI, Section 1 of the Colorado Constitution; or (e) as a donation or grant by the District to, or in aid of, any person, company or corporation within the meaning of Article XI, Section 2 of the Colorado Constitution. Section 13. Supplemental Public Securities Act. The District designates this Resolution as an act of issuance for purposes of, and hereby elects to apply all of the provisions

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• f, the Supplemental Public Securities Act, title 11, article 57, part 2, Colorado Revised Statutes,

as amended, to the New Certificates. Section 14. Ratification of Prior Actions. All action previously taken by the Board

• f Education and the officers and employees of the District directed toward the transactions

described herein or in the documents described or referred to herein are hereby ratified, approved and confirmed. Section 15.

• Repealer. All bylaws, orders, resolutions, ordinances and other

instruments, or parts thereof that are in conflict with this Resolution are hereby repealed, but

• nly to the extent of such conflict. This repealer shall not be construed to revive any bylaw,
• rder, resolution, ordinance, or other instrument, or part thereof, heretofore repealed.

Section 16.

• Severability. If any section, paragraph, clause or provision of this

Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. Section 17. Effective Date; Expiration of Authority. This Resolution shall be in full force and effect upon its passage and adoption. The authorization of District officers and employees to execute and deliver District Documents pursuant to this Resolution shall expire on the date that is one year after the adoption hereof.

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ADOPTED AND APPROVED on the date set forth in the certification attached hereto. [DISTRICT SEAL] SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO __________________________________________ President, Board of Education Attest: By Secretary, Board of Education

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EXHIBIT A POTENTIAL ADDITIONAL LEASED PROPERTY William R. Roberts School Kunsmiller K8/HS Lake MS/Lake Intnl/W Denver Prep Rishel Middle School/MSLA/Kipp HS Grant Middle School Kepner Middle School Barnum Elementary Harrington Elementary Kaiser Elementary McGlone Elementary Fairmont Elementary Ford Elementary

4839-6058-0879.3

STATE OF COLORADO ) SCHOOL DISTRICT NO. 1 ) ss. CITY AND COUNTY OF DENVER ) I, the Secretary of the Board of Education of School District No. 1, in the City and County of Denver and State of Colorado (the “District”), do hereby certify that: 1. Attached is a true and correct copy of a resolution (the “Resolution”) adopted by the Board of Education at a regular meeting held on May 17, 2012. 2. Notice of such meeting was posted in a public place within the boundaries of the District designated by the Board of Education for the posting of notices of meetings of the Board

• f Education no less than 24 hours prior to the holding of the meeting.

3. The Resolution was duly moved, seconded and adopted at such meeting by the affirmative vote of a majority of the members of the Board of Education as follows: Board of Education Member Yes No Absent Abstaining Nate Easley ____ ____ ____ ____ Happy Haynes ____ ____ ____ ____ Arturo Jimenez ____ ____ ____ ____ Jeannie Kaplan ____ ____ ____ ____ Andrea Mérida ____ ____ ____ ____ Anne Rowe ____ ____ ____ ____ Mary A. Seawell ____ ____ ____ ____ 4. The Resolution was duly approved by the Board, signed by the President of the Board of Education, sealed with the District’s seal, attested by the Secretary of the Board of Education and recorded in the minutes of the Board of Education. 5. The meeting at which the Resolution was adopted was noticed, and all proceedings relating to the adoption of the Resolution were conducted, in accordance with all applicable bylaws, rules, regulations and resolutions of the District, in accordance with the normal procedures of the District relating to such matters, and in accordance with applicable constitutional provisions and statutes of the State of Colorado and all other applicable laws. WITNESS my hand and the seal of the District as of May 17, 2012. ____________________________________ Secretary [SEAL]

Resolution 11 Issuance of General Obligation Bonds

ACTION Presented to Finance and Audit Committee on May 7, 2012 May 17, 2012 RESOLUTION NO. __________ Authorizing the Issuance of General Obligation Bonds For the Purpose of refunding outstanding General Obligation Bonds of the District For the Fiscal Year Beginning July 1, 2012, and Ending June 30, 2013

• 76 -

May 17, 2012 Board of Education - Resolution 2012-2013 GO Refunding Bonds

4831-4242-9455.1

STATE OF COLORADO ) SCHOOL DISTRICT NO. 1 ) ss. CITY AND COUNTY OF DENVER ) I, the Secretary of the Board of Education of School District No. 1, in the City and County of Denver and State of Colorado (the “District”), do hereby certify that: 1. Attached is a true and correct copy of a resolution (the “Resolution”) adopted by the Board of Education (the “Board”) of the District at a regular meeting held on May 17, 2012. 2. Notice of such meeting was posted in a public place within the boundaries of the District designated by the Board for the posting of notices of meetings of the Board no less than 24 hours prior to the holding of the meeting. 3. The Resolution was duly moved, seconded and adopted at such meeting by the affirmative vote of a majority of the members of the Board as follows: Board Member Yes No Absent Abstaining Nate Easley, Jr. ____ ____ ____ ____ Happy Haynes ____ ____ ____ ____ Arturo Jimenez ____ ____ ____ ____ Jeannie Kaplan ____ ____ ____ ____ Andrea Mérida ____ ____ ____ ____ Anne Rowe ____ ____ ____ ____ Mary A. Seawell ____ ____ ____ ____ 4. The Resolution was duly approved by the Board, signed by the President of the Board, sealed with the District’s seal, attested by the Secretary of the Board and recorded in the minutes of the Board. 5. The meeting at which the Resolution was adopted was noticed, and all proceedings relating to the adoption of the Resolution were conducted in accordance with all applicable bylaws, rules, regulations and resolutions of the District, in accordance with the normal procedures of the District relating to such matters, and in accordance with applicable constitutional provisions and statutes of the State of Colorado and all other applicable laws. WITNESS my hand and the seal of the District as of the 17th day of May, 2012. By Secretary

TABLE OF CONTENTS Page i

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Section 1. Definitions.............................................................................................................. 2 Section 2. Authorization and Purpose of Bonds ..................................................................... 6 Section 3. Bond Details........................................................................................................... 6 Section 4. Redemption of Bonds Prior to Maturity ................................................................ 7 Section 5. Security for the Bonds ........................................................................................... 8 Section 6. Payments by District to Paying Agent ................................................................. 10 Section 7. Form of Bonds ..................................................................................................... 10 Section 8. Execution of Bonds .............................................................................................. 10 Section 9. Temporary Bonds ................................................................................................. 11 Section 10. Registration of Bonds in Registration Books Maintained by Paying Agent ....... 11 Section 11. Registration of Bonds by Clerk and Recorder of the City and County of Denver .................................................................................................................. 11 Section 12. Transfer and Exchange of Bonds ......................................................................... 11 Section 13. Replacement of Lost, Destroyed or Stolen Bonds ............................................... 12 Section 14. Bond Accounts ..................................................................................................... 12 Section 15. Delivery of Bonds and Application of Bond Proceeds ........................................ 12 Section 16. Investments .......................................................................................................... 12 Section 17. Various Findings, Determinations, Declarations and Covenants ........................ 13 Section 18. Federal Income Tax Covenants ........................................................................... 14 Section 19. Defeasance ........................................................................................................... 15 Section 20. Events of Default ................................................................................................. 16 Section 21. Remedies for Events of Default ........................................................................... 16 Section 22. Amendment of Resolution ................................................................................... 17 Section 23. Appointment and Duties of Paying Agent ........................................................... 18 Section 24. Delegation and Parameters .................................................................................. 18 Section 25. Approval of Related Documents .......................................................................... 21 Section 26. Information to be Provided to Board ................................................................... 22 Section 27. Events Occurring on Days That Are Not Business Days .................................... 22 Section 28. Resolution Is Contract With Owners of Bonds and Irrepealable ......................... 22 Section 29. Provisions Relating to Bond Insurer .................................................................... 22 Section 30. Headings, Table of Contents and Cover Page ..................................................... 23 Section 31. Severability .......................................................................................................... 23 Section 32. Repeal of Inconsistent Resolutions, Bylaws, Rules and Orders .......................... 23 Section 33. Ratification of Prior Actions ................................................................................ 23 Section 34. Effective Date ...................................................................................................... 23 APPENDIX A—Form of Bond

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A RESOLUTION AUTHORIZING THE ISSUANCE BY SCHOOL DISTRICT

• NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF

COLORADO, OF ONE OR MORE SERIES OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF REFUNDING OUTSTANDING GENERAL OBLIGATION BONDS OF THE DISTRICT; PROVIDING FOR THE PAYMENT OF THE COSTS OF ISSUANCE OF SUCH BONDS; PROVIDING FOR THE LEVY OF AD VALOREM TAXES FOR THE PAYMENT OF SUCH BONDS; PROVIDING THE FORM OF SUCH BONDS AND OTHER DETAILS WITH RESPECT TO SUCH BONDS AND THE PAYMENT THEREOF; APPROVING OTHER DOCUMENTS RELATING TO SUCH BONDS; AND PROVIDING THE EFFECTIVE DATE OF THIS RESOLUTION. WHEREAS, School District No. 1, in the City and County of Denver and State of Colorado (the “District”), is a duly organized and validly existing school district, political subdivision and body corporate of the State of Colorado (the “State”); and WHEREAS, the District has previously issued and there are currently outstanding certain general obligation bonds of the District (as further defined herein, the “Prior Bonds”); and WHEREAS, pursuant to Section 20 of Article X of the Colorado Constitution, the District may refund its bonded debt at a lower interest rate without an election; and WHEREAS, pursuant to the Refunding Act and the Supplemental Act (such terms and

• ther capitalized terms used but not defined in these preambles are defined in the Section hereof

entitled “Definitions”), the District is authorized to issue, by resolution without an election, refunding bonds for the purpose of refunding and providing for the payment of outstanding general obligation bonds of the District; and WHEREAS, the Board desires to provide for the refunding of all or a portion of any one

• r more series of the Prior Bonds (collectively, as further defined herein, the “Refunded Bonds”)

for the purpose of achieving one or more of the purposes set forth in the Refunding Act; and WHEREAS, the Board has determined that it is in the best interests of the District and its residents to authorize the issuance, subject to the Section hereof entitled “Delegation and Parameters,” of the Bonds, in one or more Series and on one or more dates, for the purpose of refunding the Refunded Bonds; and WHEREAS, the proceeds derived from the sale of the Bonds of a Series, net of any portion thereof used to pay the costs of issuance of such Bonds and together with other legally available funds of the District if necessary, shall be used to pay and cancel the Related Refunded Bonds (but only if such Refunded Bonds are then subject to redemption at the option of the District) or deposited into an Escrow Account to pay the principal of, interest on and Redemption Price of such Refunded Bonds as provided in the related Escrow Agreement; and WHEREAS, no member of the Board has a potential conflict of interest in connection with the authorization, issuance, sale or use of proceeds of the Bonds; and

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WHEREAS, this Resolution is being adopted to authorize the issuance, sale and delivery

• f the Bonds, in one or more Series and on one or more dates, and to provide for the details and

payment of the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF EDUCATION OF SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO: Section 1. Definitions. The following terms shall have the following meanings as used in this Resolution: “Authorized Denominations” means $5,000 in principal amount or any integral multiple thereof; provided that this definition may be modified with respect to a Series of Bonds by the Sale Certificate for such Series pursuant to the Section hereof entitled “Delegation and Parameters.” “Ballot Issue” means, with respect to any Prior Bonds (or, for any Prior Bonds issued to refund other general obligation bonds of the District, such other general obligation bonds), the ballot issue approved by District voters authorizing the issuance of such Prior Bonds or such

• ther general obligation bonds, as applicable.

“Board” means the Board of Education of the District, and any successor body. “Bond Account” means the separate, special, subsidiary account within the Bond Redemption Fund created by this Resolution for each Series of Bonds for which a separate tax levy is made to satisfy the obligations of such Bonds. “Bond Counsel” means (a) as of the date hereof, Kutak Rock LLP, and (b) as of any other date, Kutak Rock LLP or such other attorneys selected by the District with nationally recognized expertise in the issuance of municipal bonds. “Bond Insurance Policy” means, with respect to the Insured Bonds, if any, of any Series, the bond insurance policy issued by the related Bond Insurer insuring the payment when due of the principal of and interest on such Insured Bonds as provided therein. “Bond Insurer” means, with respect to the Insured Bonds, if any, of any Series, the bond insurer selected by the Sale Delegate in the Sale Certificate for such Series pursuant to the Section hereof entitled “Delegation and Parameters,” or any successor thereto. “Bond Obligation” means, as of any date, the principal amount of the Bonds that are Outstanding as of such date. “Bond Purchase Agreement” means, with respect to a Series of Bonds, the contract pursuant to which the Underwriter for such Series of Bonds will agree to purchase the Bonds of such Series at the price and on the terms set forth therein. “Bond Redemption Fund” means the Bond Redemption Fund of the District established and maintained as required under State law.

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“Bonds” means the bonds, which may be issued in one or more Series and one or more dates, authorized by the Section hereof entitled “Authorization and Purpose of Bonds.” “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State are authorized or obligated by law or executive order to be closed for business. “City Council” means the City Council of the City and County of Denver, Colorado, acting as the Board of County Commissioners of the City and County of Denver, Colorado. “Code” means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein shall be deemed to include the United States Treasury Regulations proposed or in effect thereunder and applicable to the Bonds or the use of proceeds thereof, unless the context clearly requires otherwise. “Commitment” means the commitment to insure the Insured Bonds, if any, of any Series, issued to the District by the related Bond Insurer. “Continuing Disclosure Undertaking” means, with respect to a Series of Bonds, the undertaking of the District to facilitate compliance with Securities and Exchange Commission Rule 15c2-12 (17 C.F.R. § 240.15c2-12) in connection with such Series of Bonds. “Dated Date” means, with respect to a Series of Bonds, the original dated date for the Bonds of such Series, which shall be the date of delivery of such Bonds, or such other date as set forth in the Sale Certificate. “Defeasance Securities” means bills, certificates of indebtedness, notes, bonds or similar securities which are direct non-callable obligations of the United States of America or which are fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America, to the extent such investments are Permitted Investments. “District” means School District No. 1, in the City and County of Denver and State of Colorado, and any successor thereto. “DTC” means The Depository Trust Company, New York, New York, and its successors in interest and assigns. “Escrow Account” means, with respect to a Series of Bonds, the escrow account held by the Escrow Agent for the payment of the Refunded Bonds Requirements of the Related Refunded Bonds pursuant to the applicable Escrow Agreement. “Escrow Agent” means Wells Fargo Bank, National Association, in its capacity as escrow agent under the Escrow Agreement or Escrow Agreements. “Escrow Agreement” means, with respect to a Series of Bonds, the Escrow Agreement between the District and the Escrow Agent pursuant to which the Related Refunded Bonds will be defeased.

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“Event of Default” means any of the events specified in the Section hereof entitled “Events of Default.” “Insured Bonds” means those Bonds, if any, of any Series insured by a Bond Insurance Policy, as set forth in the applicable Sale Certificate pursuant to the Section hereof entitled “Delegation and Parameters.” “Interest Payment Date” means, with respect to a Series of Bonds, each of the dates set forth as such in the Sale Certificate pursuant to the Section hereof entitled “Delegation and Parameters.” “Official Statement” means the final Official Statement relating to a Series of Bonds. “Outstanding” means, when used with respect to the Bonds as of any date, all Bonds issued and delivered by the District, except the following: (a) any Bond cancelled by the District, or otherwise on the District’s behalf, at

• r before such date;

(b) any Bond held by or on behalf of the District; (c) any Bond for the payment or the redemption of which moneys or Defeasance Securities sufficient to meet all of the payment requirements of the principal

• f, premium, if any, and interest on such Bond to the date of maturity or prior redemption

thereof, shall have theretofore been deposited in trust for such purpose in accordance with the Section hereof entitled “Defeasance”; and (d) any lost, apparently destroyed, or wrongfully taken Bond in lieu of or in substitution for which another bond or other security shall have been executed and delivered. “Owner” means the Person or Persons in whose name or names a Bond is registered on the registration books maintained by the District pursuant to this Resolution and the Paying Agent Agreement. “Paying Agent” means Wells Fargo Bank, National Association, and any successor thereto or assign approved by the District. “Paying Agent Agreement” means the Paying Agent Agreement with respect to a Series

• f Bonds between the District and the Paying Agent.

“Permitted Investments” means any investment in which funds of the District may be invested under the laws of the State at the time of such investment. “Person” means a corporation, firm, other body corporate, partnership, association or individual and also includes an executor, administrator, trustee, receiver or other representative appointed according to law.

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“Preliminary Official Statement” means the Preliminary Official Statement relating to a Series of Bonds. “Prior Bonds” means any outstanding general obligation bonds of the District. “Rebate Account” means, with respect to a Series of Bonds, the separate account designated as such in the Section hereof entitled “Federal Income Tax Covenants.” “Record Date” means, with respect to each Interest Payment Date, the day that is the first day or the fifteenth day of a calendar month which is closest in time to the day that is 15 days prior to such Interest Payment Date. “Redemption Date” means, with respect to any Bond or Prior Bond, the date or dates on which such Bond or Prior Bond shall be called for prior redemption. “Redemption Price” means, with respect to any Bond or Prior Bond, the principal amount thereof plus the applicable premium, if any, payable upon the redemption thereof prior to the stated maturity date thereof on a Redemption Date. “Refunded Bonds” means those Outstanding Prior Bonds refunded with the proceeds of the Bonds. “Refunded Bonds Requirements” means, with respect to any of the Refunded Bonds, the principal and interest due with respect to such Refunded Bonds through the maturity date or earlier Redemption Date or Dates for such Refunded Bonds and the Redemption Price payable for such Refunded Bonds on any such Redemption Date or Dates. “Refunding Act” means Article 56 of Title 11, Colorado Revised Statutes, as amended. “Refunding Project” means the refunding of the Refunded Bonds and any other purpose for which proceeds of the Bonds may be expended under the Refunding Act and the Supplemental Act, including, but not limited to, the payment of the costs of issuance of the Bonds and the refunding, paying and discharging of the Refunded Bonds. “Related Refunded Bonds” means, with respect to a Series of Bonds, those Refunded Bonds that are designated as being refunded with the proceeds of such Bonds in the Sale Certificate for such Bonds pursuant to the Section hereof entitled “Delegation and Parameters.” “Resolution” means this resolution, including any amendments or supplements hereto, and including, upon the execution of any Sale Certificate by the Sale Delegate, the matters set forth in such Sale Certificate. “Sale Certificate” means the certificate with respect to any Series of Bonds executed by the Sale Delegate under the authority delegated pursuant to the Section hereof entitled “Delegation and Parameters.” “Sale Delegate” means any of the Chief Financial Officer of the District, the Superintendent of the District or any member of the Board.

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“Series” means any series of Bonds authorized to be issued hereunder and designated as such in the Sale Certificate related thereto. “State” means the State of Colorado. “Supplemental Act” means Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended. “Tax Compliance Certificate” means, with respect to a Series of Tax-Exempt Bonds, the Tax Compliance Certificate of the District relating to the Bonds of such Series, dated the date on which such Bonds are originally issued, as such certificate may be superseded or amended in accordance with its terms. “Tax-Exempt Bond” means any Bond the interest on which is intended by the District to be excluded from gross income for federal income tax purposes. “Underwriter” means, with respect to any Series of Bonds, the underwriter or underwriters designated as such in the Sale Certificate for such Series of Bonds. Section 2. Authorization and Purpose of Bonds. (a) The District hereby authorizes the issuance of the Bonds in one or more Series and on one or more dates, subject to the parameters set forth in the Section hereof entitled “Delegation and Parameters,” and directs that each Series of Bonds shall be issued in accordance with this Resolution and the Sale Certificate for such Series of Bonds. (b) The Bonds shall be issued pursuant to the Refunding Act and the Supplemental Act for the purpose of providing funds for the Refunding Project. Section 3. Bond Details. (a) Registered Form, Denominations, Dated Date and Numbering. The Bonds of each Series shall be issued as fully registered bonds, shall be dated as of the Dated Date for such Series, and shall be registered in the names of the Persons identified in the registration books maintained by the District pursuant hereto. The Bonds shall be issued in Authorized Denominations. Each Series of Bonds shall be designated as “School District No. 1, in the City and County of Denver and State of Colorado, General Obligation Refunding Bonds” followed by the word “Series” and the calendar year of issue and a letter beginning with “A” for the first Series issued during such calendar year and continuing thereafter; provided that such designation may be supplemented or modified at the discretion of the Sale Delegate to more accurately describe each Series. The Bonds of each Series shall be consecutively numbered, beginning with the number

• ne, preceded by the letter “R” and the letter of the Series of which a Bond is a part.

(b) Maturity Dates, Principal Amounts and Interest Rates. The Bonds of a Series shall mature on the dates and in the principal amounts, and shall bear interest at the

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rates per annum (calculated based on 360-day year of twelve 30-day months), set forth in the Sale Certificate for such Bonds. (c) Accrual and Dates of Payment of Interest. Interest on the Bonds of a Series shall accrue at the rates set forth in the Sale Certificate for such Series as described above from the later of the Dated Date or the latest Interest Payment Date for such Series (or in the case of defaulted interest, the latest date) to which interest has been paid in full, and shall be payable on each such Interest Payment Date. (d) Manner and Form of Payment. Principal of and premium, if any, on each Bond shall be payable to the Owner thereof upon presentation and surrender of such Bond at the principal operations office of the Paying Agent in Minneapolis, Minnesota or at such other office of the Paying Agent designated by the Paying Agent for such

• purpose. Interest on each Bond shall be payable by check or draft of the Paying Agent

mailed on each Interest Payment Date for such Bond to the Owner thereof as of the close

• f business on the corresponding Record Date; provided that, interest payable to any

Owner may be paid by any other means agreed to by such Owner and the Paying Agent that does not require the District to make moneys available to the Paying Agent earlier than otherwise required hereunder or increase the costs borne by the District hereunder. All payments of the principal of, premium, if any, and interest on each Series of Bonds shall be made in lawful money of the United States of America. (e) Book-Entry Registration. Notwithstanding any other provision hereof, the Bonds of each Series shall be delivered only in book-entry form registered in the name of Cede & Co., as nominee of DTC acting as securities depository of such Bonds, and principal of, premium, if any, and interest on such Bonds shall be paid by wire transfer to DTC; provided, however, if at any time the Paying Agent determines, and notifies the District that it has determined, that DTC is no longer able to act as, or is no longer satisfactorily performing its duties as, securities depository for such Bonds, the District may, at its discretion, either (i) designate a substitute securities depository for DTC and reregister such Bonds as directed by such substitute securities depository; or (ii) terminate the book-entry registration system and reregister such Bonds in the names

• f the beneficial owners thereof provided to it by DTC. Neither the District nor the

Paying Agent shall have any liability to DTC, Cede & Co., any substitute securities depository, any Person in whose name such Bonds are reregistered at the direction of any substitute securities depository, any beneficial owner of such Bonds or any other Person for (A) any determination made by the Paying Agent pursuant to the proviso at the end of the immediately preceding sentence; or (B) any action taken to implement such determination and the procedures related thereto that is taken pursuant to any direction of

• r in reliance on any information provided by DTC, Cede & Co., any substitute securities

depository or any Person in whose name such Bonds are reregistered. Section 4. Redemption of Bonds Prior to Maturity. (a) Optional Redemption. The terms, if any, on which the Bonds of a Series shall be subject to redemption at the option of the District shall be set forth in the Sale Certificate for such Bonds.

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(b) Mandatory Redemption. The terms, if any, on which the Bonds of a Series shall be subject to mandatory redemption shall be set forth in the Sale Certificate for such Bonds. (c) Redemption Procedures. Notice of any redemption of Bonds shall be given by the Paying Agent by sending a copy of such notice by first class, postage prepaid mail or facsimile transmission, not less than 30 days prior to the Redemption Date, to the Owner of each Bond being redeemed. Such notice shall specify the number

• r numbers of the Bonds so to be redeemed (if redemption shall be in part) and the

Redemption Date. If, by the date of the sending of such notice, sufficient moneys have not been deposited with the District or the related Escrow Agent for the payment of the Redemption Price of, and the accrued interest, if any, on, such Bonds on such Redemption Date, such notice may additionally state that such redemption shall be conditioned upon delivery to the Paying Agent of moneys sufficient to pay such Redemption Price and accrued interest on or before such Redemption Date. If any Bond shall have been duly called for redemption and if, on or before the Redemption Date, the District shall have delivered to the Paying Agent moneys sufficient to pay the Redemption Price of and any accrued interest on such Bond on such Redemption Date, then such Bond shall become due and payable at such Redemption Date, and from and after such date interest shall cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. (d) Modification of Section by Sale Certificate. Notwithstanding the foregoing provisions of this Section, this Section may be modified by the Sale Certificate pursuant to the Section hereof entitled “Delegation and Parameters.” Section 5. Security for the Bonds. (a) General Obligations. The Bonds shall be general obligations of the District and the full faith and credit of the District are pledged for the punctual payment

• f the principal of and interest on the Bonds. The Bonds shall not constitute a debt or

indebtedness of the City and County of Denver, the State or any political subdivision of the State other than the District. (b) Levy of Ad Valorem Taxes. For the purpose of paying the principal of and interest on the Bonds when due, respectively, the Board shall annually determine and certify to the City Council a rate of levy for general ad valorem taxes, without limitation, as to rate or amount, on all of the taxable property in the District, sufficient to pay the principal of and interest on the Bonds when due, respectively, whether at maturity or upon earlier redemption. (c) Application of Proceeds of Ad Valorem Taxes. The general ad valorem taxes levied pursuant to paragraph (b) of this Section with respect to the Bonds of each Series, when collected, shall be deposited in the Bond Account for such Series and shall

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be applied solely to the payment of the principal of and interest on the Bonds of such Series, and for no other purpose until such Bonds, including principal and interest, are fully paid, satisfied and discharged. (d) Appropriation and Budgeting of Proceeds of Ad Valorem Taxes. Moneys received from the general ad valorem taxes levied pursuant to subsection (b) of this Section in an amount sufficient to pay, on the dates such amounts are due pursuant to this Resolution, the principal of and interest on the Bonds are hereby appropriated for that purpose and all such amounts payable pursuant to this Resolution in each year shall be included in the annual budget and appropriation resolution to be adopted and passed by the Board for such year. (e) Use or Advance of Other Legally Available Moneys. Nothing herein shall be interpreted to prohibit or limit the ability of the District to use legally available moneys other than the proceeds of the general ad valorem property taxes levied pursuant to paragraph (b) of this Section to pay all or any portion of the principal of or interest on any Bonds. If and to the extent such other legally available moneys are used to pay the principal of or interest on the Bonds, the District may, but shall not be required to, (i) reduce the amount of taxes levied for such purpose pursuant to paragraph (b) of this Section or (ii) use proceeds of taxes levied pursuant to paragraph (b) of this Section to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds. If the District selects alternative (ii) in the immediately preceding sentence, the taxes levied pursuant to paragraph (b) of this Section shall include amounts sufficient to fund the reimbursement. (f) Certification to City Council. It is hereby declared that, if the District does not otherwise determine and certify to the City Council a rate of levy for general ad valorem property taxes as required by subsection (b) of this Section, the foregoing provisions of this Section shall constitute a certificate from the Board to the City Council showing the aggregate amount of ad valorem taxes to be levied by the City Council from time to time, as required by law, for the purpose of paying, on the dates such amounts are due pursuant to this Resolution, the principal of and interest on each Series of Bonds. (g) State Intercept Program. The payment of the principal of and interest on the Bonds of each Series is further secured pursuant to Section 22-41-110, Colorado Revised Statutes, as amended (the “State Intercept Program”). The District hereby represents that each Series of Bonds qualifies for the State Intercept Program because the Board has not adopted a resolution stating that it will not accept payment with respect to the Bonds from the State Treasurer under the State Intercept Program. For each Series of Bonds, the Secretary of the District is hereby directed to file with the State Treasurer copies of this Resolution, the Official Statement and the Paying Agent Agreement for such Series and the name, address and phone number of the Paying Agent in accordance with Section 22-41-110(5), Colorado Revised Statutes, as amended. In accordance with the State Intercept Program, whenever the Paying Agent has not received money from the District sufficient to pay the principal of and interest on any

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Bonds on the Business Day immediately prior to the date such payment is due to the Owners thereof pursuant hereto, the Paying Agent shall (i) so notify the State Treasurer and the District by telephone, facsimile or other similar communication, followed by written verification, of such payment status; (ii) take all further actions required to collect from the State Treasurer the amount of money available pursuant to the State Intercept Program to pay the principal of and interest due on such Bonds that it has not received from the District; and (iii) apply any moneys forwarded to it by the State Treasurer solely to the payment of the principal of and interest on such Bonds. The State has covenanted in subsection (6) of Section 22-41-110, Colorado Revised Statutes, as amended, that it will not repeal, revoke or rescind the provisions of the State Intercept Program or modify or amend the same so as to limit or impair the rights or remedies granted by the State Intercept Program; but nothing in such subsection shall be deemed or construed to require the State to continue the payment of State assistance to any school district, to limit or prohibit the State from repealing, amending

• r modifying any law relating to the amount of State assistance to school districts or the

manner of payment or the timing thereof, to create a debt of the State with respect to the Bonds within the meaning of any State constitutional provision or to create any liability except to the extent provided in the State Intercept Program. Section 6. Payments by District to Paying Agent. The District shall pay to the Paying Agent from the applicable Bond Account or other legally available moneys an amount sufficient to pay the sum of the principal of, premium, if any, and interest on each Bond when due, including without limitation, the Redemption Price of any Bond to be redeemed prior to maturity, by no later than the Business Day immediately preceding the date on which such amount is due to the Owner thereof. Section 7. Form of Bonds. The Bonds of each Series shall be in substantially the form set forth in Appendix A, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the District executing the same (whose manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). All covenants, statements, representations and agreements contained in the Bonds are hereby approved and adopted as the covenants, statements, representations and agreements of the

• District. Although attached as an appendix for the convenience of the reader, Appendix A is an

integral part of this Resolution and is incorporated herein as if set forth in full in the body of this Resolution. Section 8. Execution of Bonds. The Bonds shall be executed in the name and on behalf

• f the District with the manual or facsimile signature of the President of the Board, shall bear a

manual or facsimile of the seal of the District and shall be attested by the manual or facsimile signature of the Secretary of the Board, all of whom are hereby authorized and directed to prepare and execute the Bonds in accordance with the requirements hereof. Should any officer whose manual or facsimile signature appears on any Bond cease to be such officer before delivery of such Bond, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. When any Bond has been duly executed, the officers of the District are authorized to, and shall, deliver the same to the Paying Agent for authentication. No Bond shall be secured by or entitled to the benefit of this Resolution, or shall be valid or obligatory for

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any purpose, unless the certificate of authentication of the Paying Agent has been manually executed by an authorized signatory of the Paying Agent. The executed certificate of authentication of the Paying Agent upon any Bond shall be conclusive evidence, and the only competent evidence, that such Bond has been properly authenticated and delivered hereunder. Section 9. Temporary Bonds. Until Bonds of any Series in definitive form are ready for delivery, the District may execute, and, upon the request of the District, the Paying Agent shall authenticate and deliver, subject to the provisions, limitations and conditions set forth herein, one or more Bonds of such Series in temporary form, whether printed, typewritten, lithographed or otherwise produced, substantially in the form of the definitive Bonds, with appropriate omissions, variations and insertions, and in authorized denominations. Until exchanged for Bonds in definitive form such Bonds in temporary form shall be entitled to the benefits and security of this Resolution. Upon the presentation and surrender of any Bond in temporary form, the District shall, without unreasonable delay, prepare, execute and deliver to the Paying Agent, and the Paying Agent shall authenticate and deliver, in exchange therefor, a Bond or Bonds of the same Series in definitive form. Such exchange shall be made by the Paying Agent without making any charge therefor to the registered owner of such Bond in temporary form. Section 10. Registration of Bonds in Registration Books Maintained by Paying

• Agent. The Paying Agent shall maintain registration books in which the ownership, transfer and

exchange of Bonds shall be recorded. The person in whose name any Bond shall be registered

• n such registration books shall be deemed to be the absolute owner thereof for all purposes,

whether or not payment on any Bond shall be overdue, and neither the District nor the Paying Agent shall be affected by any notice or other information to the contrary. Section 11. Registration of Bonds by Clerk and Recorder of the City and County of

• Denver. Pursuant to Section 22-42-121, Colorado Revised Statutes, as amended, (a) the Board

hereby requests that the Clerk and Recorder of the City and County of Denver, which is the city and county wherein the headquarters of the District are located, register each Series of Bonds on a collective, and not an individual, basis in a book kept by him or her for such purpose; and (b) when so registered, the legality of such Bonds shall not be open to contest by the District, or by any person whomsoever, for any reason whatever. The President of the Board is hereby directed to deliver to the Clerk and Recorder of the City and County of Denver, prior to or simultaneously with the issuance of each Series of Bonds, a letter or certificate requesting registration of such Bonds pursuant to Section 22-42-121, Colorado Revised Statutes, as amended, and the statutory registration fee, which amount is hereby appropriated for such purposes from legally available moneys of the District. Section 12. Transfer and Exchange of Bonds. Bonds of any Series may be transferred

• r exchanged at the principal operations office of the Paying Agent in Minneapolis, Minnesota or

at such other office of the Paying Agent designated by the Paying Agent for such purpose for a like aggregate principal amount of Bonds of other authorized denominations of the same Series, maturity and interest rate, upon payment by the transferee of a reasonable transfer fee established by the Paying Agent, together with any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. Upon surrender for transfer of any Bond, duly endorsed for transfer or accompanied by an

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assignment duly executed by the Owner or his or her attorney duly authorized in writing, the District shall execute the Paying Agent shall authenticate and deliver a new Bond in the name of the transferee. Notwithstanding any other provision hereof, the Paying Agent shall not be required to transfer any Bond (a) which is scheduled to be redeemed in whole or in part between the Business Day immediately preceding the mailing of the notice of redemption and the Redemption Date, or (b) between the Record Date for any Interest Payment Date for such Bond and such Interest Payment Date. Section 13. Replacement of Lost, Destroyed or Stolen Bonds. If any Bond shall become lost, apparently destroyed, stolen or wrongfully taken, it may be replaced in the form and tenor of the lost, destroyed, stolen or taken bond and the District shall execute, and the Paying Agent shall authenticate and deliver, a replacement Bond upon the Owner furnishing, to the satisfaction of the Paying Agent: (a) proof of ownership (which shall be shown by the registration books of the Paying Agent); (b) proof of loss, destruction or theft; (c) an indemnity to the Paying Agent with respect to the Bond lost, destroyed or taken; and (d) payment of the cost of preparing and executing the new Bond. Section 14. Bond Accounts. The District shall establish and maintain each of the Bond Accounts as a subsidiary account within its Bond Redemption Fund for the payment of the Bonds of the respective Series in accordance with State law. Section 15. Delivery of Bonds and Application of Bond Proceeds. Upon payment to the District of the purchase price of the Bonds of any Series in accordance with the related Bond Purchase Agreement, such Bonds shall be delivered to or as directed by the Underwriter and the proceeds received by the District from the sale of such Bonds shall be applied as a supplemental appropriation by the District as follows: (a) accrued interest on such Bonds, if any, shall be deposited by the District into the Bond Account for such Bonds; (b) a portion of the proceeds of such Bonds, in an aggregate amount equal to the costs of issuance of such Bonds, shall be delivered to the District to pay the same, including, if such Bonds include any Insured Bonds, the premium for the related Bond Insurance Policy; and (c) the remaining proceeds of such Bonds, which shall be in an amount sufficient, together with any legally available moneys of the District, to pay the Refunded Bonds Requirements of the Related Refunded Bonds when due, shall be deposited into the Escrow Account for such Bonds; provided that if any portion of the proceeds are to be used to pay and cancel any of the Related Refunded Bonds on the date of issuance of such Bonds, then such proceeds shall be delivered to the paying agent for such Related Refunded Bonds to pay the Redemption Price of and any accrued interest on such Related Refunded Bonds in accordance with the terms of the resolution authorizing such Related Refunded Bonds. Section 16. Investments. Proceeds the Bonds delivered to the District pursuant to the Section hereof entitled “Delivery of Bonds and Application of Bond Proceeds,” moneys on

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deposit in the Bond Account for any Series of Bonds, moneys on deposit in any Rebate Account and any other moneys held by the District or the Paying Agent with respect to the Bonds shall be invested in Permitted Investments, provided that: (a) the investment of such moneys shall be subject to any applicable restrictions set forth in the applicable Tax Compliance Certificate; and (b) the District shall be authorized to use any earnings from the investment of moneys on deposit in each Bond Account for any legal purpose. By adoption of this Resolution, the Board specifically authorizes the investment of moneys held in Permitted Investments with a maturity date later than five years from the date of purchase. This Section shall not apply to moneys in the Escrow Accounts, which shall be invested as provided in the applicable Escrow Agreement. Section 17. Various Findings, Determinations, Declarations and Covenants. The Board, having been fully informed of and having considered all the pertinent facts and circumstances, hereby finds, determines, declares and covenants with the Owners of the Bonds that: (a) The proceeds of the Bonds of any Series will be issued to refinance the Related Refunded Bonds at a lower interest rate within the meaning of Article X, Section 20 of the Colorado Constitution. (b) By refunding the Related Refunded Bonds with the proceeds of the Bonds

• f any Series, the District will reduce the net effective interest rate of the obligations

represented by the Related Refunded Bonds or achieve another purpose for which proceeds of Bonds may be expended under the Refunding Act and the Supplemental Act. (c) In accordance with the Refunding Act, the principal amount of the Bonds

• f any Series, when combined with the principal amount of any unrefunded bonds of the

same series as the Related Refunded Bonds and the principal amount of any other bonds issued pursuant to the same Ballot Issue originally authorizing the issuance of the Related Refunded Bonds (or bonds refunded thereby), will not exceed the aggregate principal amount authorized by such Ballot Issue; and (d) With respect to any Series of Bonds, the Board hereby (i) exercises its

• ption to redeem the Related Refunded Bonds on the Redemption Date or Dates, if any,

set forth in the Sale Certificate at the Redemption Price therefor, (ii) directs that all actions necessary to redeem the Related Refunded Bonds on the applicable Redemption Dates or Dates be taken, including, without limitation, the delivery of the notice of redemption required to be given with respect to the Related Refunded Bonds by the resolution of the Board authorizing the issuance of such Related Refunded Bonds and (iii) directs the Escrow Agent to use moneys in the Escrow Account for such Related Refunded Bonds to pay the principal of and interest on such Related Refunded Bonds until the maturity date or redemption of such Related Refunded Bonds and the Redemption Price of such Related Refunded Bonds on any such Redemption Date or Dates in accordance with the resolution of the Board authorizing the issuance of the Related Refunded Bonds. (e) The Board hereby directs its officers and employees to file or cause to be filed: (i) the report with respect to each Series of the Bonds required by Section 22-42-

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125, Colorado Revised Statutes, as amended, with the State Board of Education within 10 days of the issuance of such Bonds; and (ii) the report with respect to such Bonds and the Related Refunded Bonds required by Section 11-56-105(8), Colorado Revised Statutes, as amended, with the State Board of Education within 60 days of the issuance of such Bonds. (f) The issuance of the Bonds will not cause the District to exceed its debt limit under applicable State law. (g) It is in the best interests of the District and its residents that the Bonds be authorized, sold, issued and delivered at the time, in the manner and for the purposes provided in this Resolution. (h) The issuance of the Bonds of any Series and all procedures undertaken incident thereto will be in full compliance and conformity with all applicable requirements, provisions and limitations prescribed by the Constitution and laws of the State, including the Refunding Act and the Supplemental Act, and all conditions and limitations of the Refunding Act, the Supplemental Act and other applicable law relating to the issuance of such Bonds will be satisfied as of the date thereof. (i) The District and DTC have previously entered into a Blanket Letter of Representations dated July 11, 1997, which Blanket Letter of Representations will govern the book-entry registration system for the Bonds. (j) In accordance with Section 11-57-204, C.R.S., the District hereby elects to apply all of the provisions of the Supplemental Act to each Series of Bonds. Section 18. Federal Income Tax Covenants. For purposes of ensuring that the interest

• n any Bonds issued hereunder as Tax-Exempt Bonds is and remains excluded from gross

income for federal income tax purposes, the District hereby covenants for the benefit of the Owners of such Tax-Exempt Bonds that: (a) Prohibited Actions. The District will not use or permit the use of any proceeds of such Tax-Exempt Bonds or any other funds of the District from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or permit to be taken any other action or actions, which would cause any such Tax- Exempt Bond to be an “arbitrage bond” within the meaning of Section 148 of the Code,

• r would otherwise cause the interest on any such Tax-Exempt Bond to be includible in

gross income for federal income tax purposes. (b) Affirmative Actions. The District will at all times do and perform all acts permitted by law that are necessary in order to assure that interest paid by the District on such Tax-Exempt Bonds shall not be includible in gross income for federal income tax purposes under the Code or any other valid provision of law. In particular, but without limitation, the District represents, warrants and covenants to comply with the following rules unless it receives an opinion of Bond Counsel stating that such compliance is not necessary: (i) the projects financed with the proceeds of the Related Refunded Bonds (or bonds refunded with the proceeds of such Related Refunded Bonds) and the gross

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proceeds of the Tax-Exempt Bonds will not be used in a manner that will cause such Tax- Exempt Bonds to be considered “private activity bonds” within the meaning of the Code; (ii) the Tax-Exempt Bonds are not and will not become directly or indirectly “federally guaranteed”; and (iii) the District will timely file an Internal Revenue Service Form 8038-G with respect to the Tax-Exempt Bonds, which shall contain the information required to be filed pursuant to Section 149(e) of the Code. (c) Tax Compliance Certificate. The District will comply with the provisions

• f the Tax Compliance Certificate with respect to respective Tax-Exempt Bonds

delivered by it on the date of issuance of such Tax-Exempt Bonds, including but not limited by the provisions thereof regarding the application and investment of the proceeds

• f such Tax-Exempt Bonds, the use of the projects financed with the proceeds of the

Related Refunded Bonds (or bonds refunded with the proceeds of such Related Refunded Bonds), the calculations, the deposits, the disbursements, the investments and the retention of records described in such Tax Compliance Certificate; provided that, in the event such Tax Compliance Certificate is superseded or amended by a new Tax Compliance Certificate drafted by, and accompanied by an opinion of, Bond Counsel stating that the use of the new Tax Compliance Certificate will not cause the interest on such Tax-Exempt Bonds to become includible in gross income for federal income tax purposes, the District will thereafter comply with the new Tax Compliance Certificate. (d) Rebate Account. There is hereby created and the District covenants to maintain a separate special rebate account (a “Rebate Account”) for each Series of Tax- Exempt Bonds. The District shall deposit earnings from the investment of proceeds of each Series of Tax-Exempt Bonds delivered to it pursuant to the Section hereof entitled “Delivery of Bonds and Application of Bond Proceeds,” earnings from the investment of moneys on deposit in the Bond Account for such Tax-Exempt Bonds or other legally available moneys in the related Rebate Account in the amounts and at the times provided in the Tax Compliance Certificate. Earnings from the investment of moneys on deposit in each such Rebate Account shall be retained in that Rebate Account. Moneys on deposit in a Rebate Account shall be used as provided in the related Tax Compliance Certificate. Section 19. Defeasance. Any Bond shall not be deemed to be Outstanding hereunder: (a) if such Bond shall have been paid and cancelled; or (b) if (i) Defeasance Securities shall have been deposited in trust for the payment thereof (whether upon or prior to the maturity of such Bond, but if such Bond is to be paid prior to maturity, the District shall have given notice, or shall have given irrevocable instructions to the Paying Agent or the Person holding such Defeasance Securities in trust to provide notice, of such prior redemption as and when required by the Section hereof entitled “Redemption of Bonds Prior to Maturity”) and (ii) if such Bond is a Tax-Exempt Bond, Bond Counsel has delivered an opinion to the effect that such deposit will not adversely affect the exclusion from gross income for federal income tax purposes of interest

• n such Bond. In computing the amount of the deposit described above, the District may include

the maturing principal of and interest to be earned on the Defeasance Securities. If less than all the Bonds are to be defeased pursuant to this Section, the District, in its sole discretion, may select which of the Bonds shall be defeased, subject to any restrictions contained in any Tax Compliance Certificate.

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Notwithstanding anything herein to the contrary, in the event that the principal and/or interest due on any Insured Bond shall be paid by the Bond Insurer for such Insured Bond pursuant to the related Bond Insurance Policy, such Insured Bond shall remain Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the District, and all covenants, agreements and other obligations of the District to the Owner of such Insured Bond shall continue to exist and shall run to the benefit of such Bond Insurer, and such Bond Insurer shall be subrogated to the rights of such Owner. Section 20. Events of Default. Each of the following events constitutes an Event of Default: (a) Nonpayment of Principal or Interest. Failure to pay, on the dates such amounts are due pursuant to this Resolution, the principal of or interest on any of the Bonds; (b) Breach or Nonperformance of Duties. Breach by the District of any material covenant set forth herein or failure by the District to perform any material duty imposed on it hereunder and continuation of such breach or failure for a period of 60 days after receipt by the Superintendent of the District of written notice thereof from the Owners of at least 10% of the aggregate amount of the Bond Obligation; provided that such 60-day period shall be extended so long as the District has commenced and continues a good faith effort to remedy such breach or failure; and provided further that any breach of any covenant set forth in the Section hereof entitled “Federal Income Tax Covenants” shall not be an Event of Default with respect to any Bonds that are not Tax- Exempt Bonds; or (c) Bankruptcy or Receivership. An order of decree by a court of competent jurisdiction declaring the District bankrupt under federal bankruptcy law or appointing a receiver of all or any material portion of the District’s assets or revenues is entered with the consent or acquiescence of the District or is entered without the consent or acquiescence of the District but is not vacated, discharged or stayed within 30 days after it is entered. Section 21. Remedies for Events of Default. (a)

• Remedies. Upon the occurrence and continuance of any Event of Default,

the Owners of not less than 25% of the aggregate amount of the Bond Obligation (or, with respect to a breach of any covenant set forth in the Section hereof entitled “Federal Income Tax Covenants,” not less than 25% of the aggregate amount of the Bond Obligation with respect to the Tax-Exempt Bonds), including, without limitation, a trustee or trustees therefor, may proceed against the District to protect and to enforce the rights of any Owners under this Resolution by mandamus, injunction or by other suit, action or special proceedings in equity or at law, in any court of competent jurisdiction: (i) for the payment of interest on any installment of principal of any Bond that was not paid when due at the interest rate borne by such Bond; (ii) for the specific performance of any covenant contained herein; (iii) to enjoin any act that may be unlawful or in violation

• f any right of any Owner of any Bond; (iv) for any other proper legal or equitable

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remedy; or (v) any combination of such remedies or as otherwise may be authorized by applicable law; provided, however, that acceleration of any amount not yet due on the Bonds according to their terms shall not be an available remedy. All such proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners

• f Bonds then Outstanding, except that only the Owners of the Tax-Exempt Bonds shall

be entitled to any recovery resulting from the breach by the District of any covenant set forth in the Section hereof entitled “Federal Income Tax Covenants.” (b) Failure To Pursue Remedies Not a Release; Rights Cumulative. The failure of any Owner of any Outstanding Bond to proceed in accordance with paragraph (a) of this Section shall not relieve the District of any liability for failure to perform or carry out its duties under this Resolution. Each right or privilege of any such Owner (or trustee therefor) is in addition and is cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right or privilege of such Owner. Section 22. Amendment of Resolution. (a) Amendments Permitted Without Notice to or Consent of Owners. The District may, without the consent of or notice to the Owners of the Bonds, adopt one or more resolutions amending or supplementing this Resolution (which resolutions shall thereafter become a part hereof) for any one or more or all of the following purposes: (i) to cure any ambiguity or to cure, correct or supplement any defect

• r inconsistent provision of this Resolution;

(ii) to subject to this Resolution or pledge to the payment of the Bonds additional revenues, properties or collateral; (iii) to institute or terminate a book-entry registration system for the Bonds or to facilitate the designation of a substitute securities depository with respect to such a system; (iv) to maintain the then existing or to secure a higher rating of the Bonds by any nationally recognized securities rating agency; (v) to designate and set forth the duties of a substitute paying agent with respect to the Bonds; (vi) to assure that the interest on the Tax-Exempt Bonds continues to qualify for exclusion from gross income for federal income tax purposes; and (vii) to make any other change that, in the judgment of the District (which may be based on advice from Persons experienced in the municipal bond business), does not materially adversely affect the Owners of the Bonds. (b) Amendments Requiring Notice to and Consent of Owners. Except for amendments permitted by paragraph (a) of this Section, this Resolution may only be

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amended in any way affecting a Series of Bonds by a resolution of the District amending

• r supplementing this Resolution (which, after the consents required therefor, shall

become a part hereof) and with the written consent of the Owners of at least 66-2/3% of the Bond Obligation represented by the Bonds of each such Series of Bonds so affected (except that any amendment that changes the Section hereof entitled “Federal Income Tax Covenants” in a manner that materially adversely affects the Owners of the Tax- Exempt Bonds of any Series shall not be effective without the written consent of the Owners of at least 66-2/3% of the Bond Obligation represented by the Tax-Exempt Bonds of each Series of Bonds so affected); provided that any amendment that makes any

• f the following changes with respect to any Bond shall not be effective without the

written consent of the Owner of such Bond: (i) a change in the maturity of such Bond; (ii) a reduction of the interest rate on such Bond; (iii) a change in the terms of redemption

• f such Bond; (iv) a delay in the payment of principal of, premium, if any, or interest on

such Bond; (v) a reduction of the Bond Obligation the consent of the Owners of which is required for an amendment to this Resolution; or (vi) the establishment of a priority or preference for the payment of any amount due with respect to any other Bond over such Bond. (c) Procedure for Notifying and Obtaining Consent of Owners. Whenever the consent of an Owner or Owners of Bonds is required under paragraph (b) of this Section, the District shall mail a notice to such Owner or Owners whose consent is required at their addresses as set forth in the registration books maintained by the Paying Agent and to the Underwriter, which notice shall briefly describe the proposed amendment and state that a copy of the amendment is on file in the office of the District for inspection. Any consent of any Owner of any Bond obtained with respect to an amendment shall be in writing and shall be final and not subject to withdrawal, rescission

• r modification for a period of 60 days after it is delivered to the District unless another

time period is stated for such purpose in the notice mailed pursuant to this paragraph. Section 23. Appointment and Duties of Paying Agent. The Paying Agent identified in the Section hereof entitled “Definitions” is hereby appointed as paying agent, registrar and authenticating agent for the Bonds unless and until the District removes it as such and appoints a successor Paying Agent, in which event such successor shall automatically succeed to the duties

• f the Paying Agent hereunder and its predecessor shall immediately turn over all its records

regarding the Bonds to such successor. The Paying Agent shall agree to perform all duties and to take all actions assigned to it hereunder in accordance with the terms hereof. Section 24. Delegation and Parameters. (a) The Board hereby delegates to the Sale Delegate the authority to determine and set forth in the Sale Certificate with respect to any Series of Bonds: (i) the matters set forth in subsection (b) of this Section, subject to the applicable parameters set forth in subsection (c) of this Section; and (ii) any other matters that, in the judgment of the Sale Delegate, are necessary or convenient to be set forth in the Sale Certificate and are not inconsistent with the Colorado Constitution, the Refunding Act, the Supplemental Act or the parameters set forth in subsection (c) of this Section. The Board hereby authorizes and directs the Sale Delegate to prepare and execute the Sale Certificate with

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respect to each Series of Bonds. Upon the execution of each such Sale Certificate, the matters set forth in such Sale Certificate shall be incorporated into this Resolution with the same force and effect as if they had been set forth herein when this Resolution was adopted. (b) The Sale Certificate for each Series of Bonds shall set forth the following matters and other matters permitted to be set forth therein pursuant to subsection (a) of this Section, but each such matter must fall within the applicable parameters set forth in subsection (c) of this Section: (i) the name of such Bonds; (ii) the date on which such Bonds will be issued; provided that the Sale Certificate may include a range of dates on which such Bonds will be issued, in which case the Sale Delegate may select the actual date on which such Bonds will be issued from such range after the execution of the Sale Certificate; (iii) the Dated Date of such Bonds; (iv) the aggregate principal amount of such Bonds; (v) the dates on which any principal amount of such Bonds shall mature and the respective principal amounts maturing on such dates; (vi) the Interest Payment Dates for such Bonds; (vii) the interest rates borne by such Bonds; provided that nothing herein shall prohibit Bonds maturing in the same year from bearing interest at different rates; (viii) the identity of the Underwriter for such Bonds; provided that nothing herein shall prohibit the Sale Delegate from selecting multiple Underwriters for a Series of Bonds; (ix) the prices at which such Bonds will be sold to the Underwriter pursuant to the related Bond Purchase Agreement; provided that nothing herein shall prohibit Bonds maturing in the same year from being sold at different prices; (x) the terms, if any, on which such Bonds may be redeemed at the

• ption of the District;

(xi) the terms, if any, on which such Bonds will be subject to mandatory redemption; (xii) modifications, if any, to the term “Authorized Denominations” in the Section hereof entitled “Definitions”; and

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(xiii) modifications, if any, to the provisions of the Section hereof entitled “Redemption of Bonds Prior to Maturity”; and (xiv) the Prior Bonds to be included in the Related Refunded Bonds and the Redemption Dates for the Related Refunded Bonds. (c) The authority delegated to the Sale Delegate by this Section shall be subject to the following parameters: (i) in no event shall any Bond be issued after the date that is one year after the date of adoption of this Resolution; (ii) the Redemption Date for any Refunded Bond shall be no earlier than the earliest date such Refunded Bond may be redeemed pursuant to the resolution authorizing such Refunded Bond; (iii) the net effective interest rate on the Bonds of any Series shall be lower than the net effective interest rate on the Related Refunded Bonds; (iv) the final maturity date of the Bonds of any Series shall be not later than the final maturity date for the Related Refunded Bonds; (v) the net present value of the total of the principal of and interest on the Bonds of any Series, when compared to the net present value of the total of the principal of, interest on and Redemption Price of the Related Refunded Bonds, shall produce a net present value savings to the District of not less than 3% of the principal amount of the Related Refunded Bonds on the date the Bonds of such Series are issued are issued; (vi) the Sale Delegate is hereby authorized to solicit bids from any monoline bond insurance companies to insure all or any portion of the Bonds of any Series. In the event that the Sale Delegate determines, based upon information provided by the Underwriter, that the best acceptable premium bid to insure all or any portion of such Bonds is less than the interest cost savings to be realized by the District as a result of so insuring such Bonds, the Sale Delegate shall be authorized to accept the Commitment issued by the best acceptable bidder and, if the Sale Delegate determines to so accept such Commitment, such Bonds shall be issued as Insured Bonds insured by the Bond Insurance Policy issued by such best acceptable bidder, who shall be deemed to be the Bond Insurer with respect to such Insured Bonds. In the event that the Sale Delegate determines, based upon information provided by the Underwriter, that no acceptable premium bid to insure any of the Bonds of any Series has been received by the District or that the best acceptable premium bid for the Bonds of such Series is greater than the interest cost savings to be realized by the District as a result of so insuring such Bonds, the Sale Delegate shall not accept any such Commitment and none of such Bonds shall be issued as Insured Bonds. For purposes of this Section: (A) the term “acceptable premium bid” means a bid which is not (1) conditioned upon the District’s compliance with conditions deemed unacceptable by the Sales

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Delegate or (2) otherwise deemed undesirable by the Sales Delegate; (B) the term “best acceptable premium bid” means the acceptable premium bid which produces the lowest present value interest cost to the District, treating the present value of such premium as interest on the Bonds for purposes of such calculation; and (C) the term “best acceptable bidder” means the bidder submitting the best acceptable premium bid. Notwithstanding the provisions of this subsection (c)(vi), there shall be a maximum of one Bond Insurer in connection with any Series of Bonds, and if the best acceptable premium bid of the Bond Insurer that is accepted by the District is a bid to insure only a portion of the Bonds of such Series, then the remainder of such Bonds shall be issued without bond insurance; and (vii) the Bonds shall not be issued on any terms that would make untrue any of the representations set forth in the Section hereof entitled “Various Findings, Determinations, Declarations and Covenants” or that would violate any

• f the covenants set forth in such Section.

Section 25. Approval of Related Documents. With respect to each Series of Bonds, the Board hereby: authorizes and approves the preparation of the Preliminary Official Statement for such Series and authorizes and approves the distribution and use of such Preliminary Official Statement in connection with the offering of the Bonds of such Series in substantially the form provided to the Board at the meeting at which this Resolution is adopted, with such changes therein as may be necessary to describe the terms and provisions of the Bonds of such Series as provided herein and in the applicable Sale Certificate and such other changes therein, if any, not inconsistent herewith, as are approved by the Chief Financial Officer of the District (whose signature on a certificate executed on behalf of the District with respect to the completeness of such Preliminary Official Statement for purposes of Securities and Exchange Commission Rule 15c2-12 (17 C.F.R. § 240.15c2-12) shall constitute conclusive evidence of such approval); authorizes and directs the preparation of, and authorizes and directs the execution by the President of the Board of, an Official Statement for use in connection with the sale of such Bonds in substantially the form of such Preliminary Official Statement, with such changes therein, if any, not inconsistent herewith, as are approved by the President of the Board (whose signature thereon shall constitute conclusive evidence of such approval); approves, and, until the date that is one year after the adoption of this Resolution, authorizes and directs the execution by the Sale Delegate of, the Bond Purchase Agreement for such Bonds in substantially the form provided to the Board at the meeting at which this Resolution is adopted, with such changes therein (including, without limitation, the inclusion of terms consistent with those set forth in the Sale Certificate), not inconsistent herewith, as are approved by the Sale Delegate (whose signature thereon shall constitute conclusive evidence of such approval); and approves, and authorizes and directs the execution by appropriate officers of the District of, the Escrow Agreement, if any, with respect to such Bonds in substantially the form provided to the Board at the meeting at which this Resolution is adopted, with such changes therein (including, without limitation, the inclusion of terms consistent with those set forth in the Sale Certificate), not inconsistent herewith, as are approved by the person(s) executing the same (whose signature(s) thereon shall constitute conclusive evidence of such approval). If any of the Bonds of any Series are to be issued as Insured Bonds, the officers and employees of the District are hereby authorized and directed to take all actions necessary to cause the Bond Insurer for such Insured

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Bonds to issue the related Bond Insurance Policy in accordance with the related Commitment, including without limitation, payment of the premium due in connection therewith and entering into any authorizing agreements. The President of the Board, the Secretary of the Board, the Sale Delegate and all other appropriate officers and employees of the District are also hereby authorized and directed to execute the following agreements and other documents with respect to the Bonds of such Series in the form approved by the person executing that same: (a) the Paying Agent Agreement; (b) the Continuing Disclosure Undertaking; (c) if such Bonds are Tax-Exempt Bonds, the Tax Compliance Certificate and an Internal Revenue Service Form 8038-G; and (d) all other documents and certificates necessary or desirable to effectuate the issuance or administration of such Bonds, the investment of proceeds of such Bonds and amounts deposited in the related Escrow Account, if any, and the related Bond Account, and the transactions contemplated hereby. Section 26. Information to be Provided to Board. At the next regular meeting of the Board following the execution of the Bond Purchase Agreement for any Series of Bonds, the Sale Delegate or the Sale Delegate’s designee shall report the results of the sale of such Bonds and the refunding of the Related Refunded Bonds to the Board. If such meeting occurs prior to the closing and issuance of such Bonds, the Sale Delegate or the Sale Delegate’s designee shall, at the next regular meeting of the Board following such closing and issuance, provide the Board with an update of such report, describing any changes to the results of such sale and refunding

• ccurring since such report.

Section 27. Events Occurring on Days That Are Not Business Days. Except as

• therwise specifically provided herein with respect to a particular payment, event or action, if

any payment to be made hereunder or any event or action to occur hereunder which, but for this Section, is to be made or is to occur on a day that is not a Business Day, such payment, event or action shall instead be made or occur on the next succeeding day that is a Business Day with the same effect as if it was made or occurred on the date on which it was originally scheduled to be made or occur. Section 28. Resolution Is Contract With Owners of Bonds and Irrepealable. After the Bonds have been issued, this Resolution shall be and remain a contract between the District and the Owners of the Bonds and shall be and remain irrepealable until all amounts due with respect to the Bonds shall be fully paid, satisfied and discharged and all other obligations of the District with respect to the Bonds shall have been satisfied in the manner provided herein. Section 29. Provisions Relating to Bond Insurer. Notwithstanding any other provision hereof, with respect to the Insured Bonds, if any, of any Series: (a) the Bond Insurer for such Insured Bonds is an expressly intended third party beneficiary hereof; and (b) unless and until such Bond Insurer has failed to make a payment due under the related Bond Insurance Policy, such Bond Insurer shall be deemed to be the Owner of each Insured Bond insured by such Bond Insurance Policy for all purposes other than: (i) except as otherwise provided in such Bond Insurance Policy, the right to receive payments of principal of, premium, if any, and interest on such Insured Bonds; and (ii) the right to consent to an amendment to this Resolution that changes any of the matters described in clauses (i) through (vi) of subsection (b) of the Section hereof entitled “Amendment of Resolution.”

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Section 30. Headings, Table of Contents and Cover Page. The headings to the various sections and subsections to this Resolution, and the cover page and table of contents that appear at front of this Resolution, have been inserted solely for the convenience of the reader, are not a part of this Resolution and shall not be used in any manner to interpret this Resolution. Section 31. Severability. It is hereby expressly declared that all provisions hereof and their application are intended to be and are severable. In order to implement such intent, if any provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable, in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. Section 32. Repeal of Inconsistent Resolutions, Bylaws, Rules and Orders. All resolutions, bylaws, rules and orders, or parts thereof, that are inconsistent with or in conflict with this Resolution, are hereby repealed to the extent of such inconsistency or conflict. Section 33. Ratification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Resolution, the Refunding Act or the Supplemental Act) by the Board or by the officers and employees of the District directed toward the issuance of the Bonds for the purposes herein set forth are hereby ratified, approved and confirmed. Section 34. Effective Date. This Resolution shall be in full force and effect immediately upon adoption by the Board. [remainder of page intentionally left blank]

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ADOPTED AND APPROVED on the date set forth in the certification attached hereto. [DISTRICT SEAL] SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO By President, Board of Education Attest: By Secretary, Board of Education

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APPENDIX A FORM OF BOND UNITED STATES OF AMERICA STATE OF COLORADO

• No. R-__

$___________ SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO GENERAL OBLIGATION REFUNDING BOND SERIES [2012/2013]____ INTEREST RATE: MATURITY DATE: ORIGINAL DATED DATE: CUSIP: _____% __________ __, 20__ ____________ __, 20__ REGISTERED OWNER: **CEDE & CO.** Tax Identification Number: 13-2555119 PRINCIPAL SUM: **DOLLARS** School District No. 1, in the City and County of Denver and State of Colorado (the “District”), a duly organized and validly existing school district, political subdivision and body corporate of the State of Colorado (the “State”), for value received, hereby promises to pay to the

• rder of the registered owner named above, or registered assigns, the principal sum stated above
• n the maturity date stated above, with interest on such principal sum from the original dated

date stated above at the interest rate per annum stated above (calculated based on a 360-day year

• f twelve 30-day months), payable on _______ __ and ________ __ of each year, commencing

________ __, 20__. The principal of and premium, if any, on this bond are payable to the registered owner hereof upon presentation and surrender of this bond at the principal operations

• ffice of Wells Fargo Bank, National Association, as Paying Agent (the “Paying Agent”), in

Minneapolis, Minnesota, or at such other office of the Paying Agent designated by the Paying Agent for such purpose. Interest on this bond is payable by check or draft of the Paying Agent mailed on the Interest Payment Date to the registered owner hereof as of the Record Date (as defined in the below-defined Resolution) for such Interest Payment Date (whether or not such day is a Business Day (as defined in the Resolution)); provided that, interest payable to the registered owner of this bond may be paid by any other means agreed to by such registered

• wner and the Paying Agent that does not require the District to make moneys available to the

Paying Agent earlier than otherwise required under the Resolution or increase the costs borne by the District under the Resolution. Notwithstanding the foregoing, so long as Cede & Co. is the registered owner of this bond, the principal of, premium, if any, and interest on this bond shall be paid by wire transfer to Cede & Co. Any payment of principal of or premium, if any, on this bond that is due on a day that is not a Business Day shall be made on the next succeeding day

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that is a Business Day with the same effect as if made on the day on which it was originally scheduled to be made. All payments of principal of and premium, if any, on this bond shall be made in lawful money of the United States of America. This bond is part of a series of general obligation bonds of the District designated School District No. 1, in the City and County of Denver and State of Colorado, General Obligation Refunding Bonds, Series [2012/2013]___, issued in the principal amount of $_________ (the “Bonds”). The Bonds have been issued pursuant to, under the authority of, and in full conformity with, the Constitution and the laws of the State, including, in particular, the Refunding Act and the Supplemental Act; and pursuant to a resolution (the “Resolution”) adopted by the Board of Education of the District. Capitalized terms used but not defined in this bond have the respective meanings assigned to them in the Resolution. THE RESOLUTION CONSTITUTES THE CONTRACT BETWEEN THE REGISTERED OWNER OF THIS BOND AND THE DISTRICT. THIS BOND IS ONLY EVIDENCE OF SUCH CONTRACT AND, AS SUCH, IS SUBJECT IN ALL RESPECTS TO THE TERMS OF THE RESOLUTION, WHICH SUPERSEDES ANY INCONSISTENT STATEMENT IN THIS BOND. The Bonds have been issued by the District for the purpose of providing funds to refund certain outstanding bonds of the District as described in the Resolution. The Bonds are general

• bligations of the District and the full faith and credit of the District are pledged for the punctual

payment of the principal of and interest on the Bonds. For the purpose of paying the principal of and interest on the Bonds when due, respectively, on the dates scheduled to be paid to the Paying Agent, the Board in the Resolution has covenanted annually to determine and certify to the City Council of the City and County of Denver, Colorado, acting as the Board of County Commissioners of the City and County of Denver, Colorado, a rate of levy for general ad valorem taxes, without limitation as to rate or amount, on all of the taxable property in the District, sufficient to pay the principal of and interest on the Bonds when due, respectively, whether at maturity or upon earlier redemption, on the dates scheduled to be paid to the Paying

• Agent. The payment of the principal of and interest on the Bonds is further secured pursuant to

Section 22-41-110, Colorado Revised Statutes, as amended (the “State Intercept Program”). Pursuant to the Resolution and the Paying Agent Agreement and in accordance with the State Intercept Program, whenever the Paying Agent has not received money from the District sufficient to pay the principal of and interest on the Bonds on the Business Day immediately prior to the date on which such payment is due pursuant to the Resolution, the Paying Agent shall (a) so notify the State Treasurer and the District by telephone, facsimile or other similar communication, followed by written verification, of such payment status; (b) take all further actions required to collect from the State Treasurer the amount of money available pursuant to the State Intercept Program to pay the principal of and interest due on the Bonds that it has not received from the Paying Agent; and (c) apply any moneys forwarded to it by the State Treasurer solely to the payment of the principal of and interest on the Bonds. [THE REDEMPTION PROVISIONS, IF ANY, FOR THE APPLICABLE SERIES OF BONDS SET FORTH IN THE RESOLUTION AND THE SALE CERTIFICATE FOR SUCH BONDS SHALL BE SET FORTH HERE.]

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[Notice of any redemption of Bonds shall be given by the Paying Agent by sending a copy of such notice by first class, postage prepaid mail or fax, not less than 30 days prior to the Redemption Date, to the Owner of each Bond being redeemed. Such notice shall specify the number or numbers of the Bonds so to be redeemed (if redemption shall be in part) and the Redemption Date. If, by the date of the sending of such notice, sufficient moneys have not been deposited with the District or the related Escrow Agent for the payment of the Redemption Price

• f, and the accrued interest, if any, on, such Bonds on such Redemption Date, such notice may

additionally state that such redemption shall be conditioned upon delivery to the Paying Agent of moneys sufficient to pay such Redemption Price and accrued interest on or before such Redemption Date. If any Bond shall have been duly called for redemption and if, on or before the Redemption Date, the District shall have delivered to the Paying Agent moneys sufficient to pay the Redemption Price of and any accrued interest on such Bond on such Redemption Date, then such Bond shall become due and payable at such Redemption Date, and from and after such date interest shall cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur.] The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of Bonds shall be recorded. The person in whose name this bond shall be registered on such registration books shall be deemed to be the absolute owner thereof for all purposes, whether or not payment on this bond shall be overdue, and neither the District nor the Paying Agent shall be affected by any notice or other information to the contrary. This bond may be transferred or exchanged at the principal operations office of the Paying Agent in Minneapolis, Minnesota or at such other office of the Paying Agent designated by the Paying Agent for such purpose for a like aggregate principal amount of Bonds of other authorized denominations ($5,000 or any integral multiple thereof) of the same Series, maturity and interest rate, upon payment by the transferee of a reasonable transfer fee established by the Paying Agent, together with any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. Upon surrender for transfer of this bond, duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or his or her attorney duly authorized in writing, the District shall execute and the Paying Agent shall authenticate and deliver a new Bond in the name of the transferee. Notwithstanding any other provision of the Resolution, the Paying Agent shall not be required to transfer any Bond (a) which is scheduled to be redeemed in whole or in part between the Business Day immediately preceding the mailing of the notice of redemption and the Redemption Date or (b) between the Record Date for any Interest Payment Date for such Bond and such Interest Payment Date. The Resolution may be amended or supplemented from time to time with or without the consent of the registered owners of the Bonds as provided in the Resolution. [THE BOND INSURANCE PROVISIONS, IF ANY, FOR THE APPLICABLE SERIES OF BONDS SET FORTH IN THE RESOLUTION AND THE SALE CERTIFICATE FOR SUCH BONDS SHALL BE SET FORTH HERE.] It is hereby certified that all conditions, acts and things required by the Constitution and laws of the State, including the Refunding Act and the Supplemental Act, and the resolutions of

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the District, to exist, to happen and to be performed, precedent to and in the issuance of this bond, exist, have happened and have been performed, and that neither this bond nor the other bonds of the issue of which this bond is a part exceed any limitations prescribed by the Constitution or laws of the State, including the Supplemental Act and the Refunding Act, or the resolutions of the District. This Bond shall not be entitled to any benefit under the Resolution, or become valid or

• bligatory for any purpose, until the Paying Agent shall have signed the certificate of

authentication hereon. [remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Board of Education of the District has caused this bond to be executed with the signature of its President and attested by the signature of its Secretary, and has caused the seal of the District to be impressed or imprinted hereon, all as of the date set forth below. [DISTRICT SEAL] SCHOOL DISTRICT NO. 1, IN THE CITY AND COUNTY OF DENVER AND STATE OF COLORADO By President, Board of Education Attest: By Secretary, Board of Education

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CERTIFICATE OF AUTHENTICATION This bond is one of the bonds of the issue described in the within mentioned Resolution. Dated: WELLS FARGO BANK, NATIONAL ASSOCIATION, as Paying Agent By Authorized Signatory

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APPROVING LEGAL OPINION Set forth below is a true copy of the approving legal opinion of Kutak Rock LLP, delivered on the date on which the Bonds were originally issued: [approving opinion of Kutak Rock LLP to be inserted in Bonds]

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[STATEMENT OF INSURANCE] [To be inserted in the Insured Bonds, if any]

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ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of Transferee) (Tax Identification or Social Security No.) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. TRANSFER FEE MAY BE REQUIRED

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PREPAYMENT PANEL The following installments of principal (or portion thereof) of this bond have been prepaid in accordance with the terms of the Resolution. Date of Principal Signature of Authorized Prepayment Prepaid Representative of the Depository