Annual Budget Fiscal Year 2014 Jason W. Taylor September 5, 2013

` Fiscal Year 2014 Budget (Proposed) ACTUAL BUDGET $ VAR % BUDGET -------------- REVENUES STATE REVENUES $ 108,078,774 $ 107,908,979 $ 169,795 0.1% FEDERAL REVENUES 845,251 1,422,767 (577,516) -0.3% LOCAL REVENUES 96,243,298 92,987,042 3,256,256 1.6% OTHER REVENUES 371,957 10,000 361,957 0.2% TOTAL REVENUES 205,539,280 202,328,788 3,210,492 EXPENDITURES: INSTRUCTIONAL SERVICES 121,540,151 119,636,495 (1,903,656) -1.0% INSTRUCTIONAL SUPPORT SERVICES 30,241,415 35,237,781 4,996,366 2.5% OPERATIONS & MAINTENANCE 24,359,609 23,324,132 (1,035,476) -0.5% AUXILIARY SERVICES 5,899,051 6,370,789 471,738 GENERAL ADMINISTRATIVE SERVICES 11,214,224 7,418,853 (3,795,371) -1.9% DEBT SERVICES 1,227,753 - 0.0% OTHER EXPENDITURES 1,957,572 5,236,836 3,279,264 1.7% TOTAL EXPENDITURES 196,439,775 198,452,640 2,012,865 1.0% OTHER FUND SOURCES (USES): TRANSFERS IN 323,193 34.1% OTHER FUND SOURCES 1,908,749 2,149,033 (240,284) -25.3% TRANSFERS OUT 1,500,132 3,098,053 1,597,922 168.4% TOTAL OTHER FUND SOURCES (USES) 731,810 (949,020) 1,680,831 177.1% EXCESS REVENUES & OTHER SOURCES OVER(UNDER)EXPENDITURES & OTHER FUND USES 9,831,316 2,927,128 6,904,188 235.9% BEGINNING FUND BALANCE 844,421 ENDING FUND BALANCE $ 10,675,737 $ 3,771,549 $ 6,904,188 183.1% RESERVED FUND BALANCE (ENDING) 1,625,597.38 1,625,597 43.1% UNRESERVED FUND BALANCE (ENDING) 9,050,139.77 3,771,549.09 5,278,591 140.0% 10,675,737.15 REQUIRED FUND BALANCE (ALSDE) 16,369,981.23 % COVERAGE OF REQUIRED FUND BALANCE 55.3% 23.0% 32.2%

General Fund Activity Fiscal Year 2014 vs. 2013 ACTUAL BUDGET $ VAR -------------- REVENUES STATE REVENUES $ 108,078,774 $ 107,908,979 $ 169,795 0.1% FEDERAL REVENUES 845,251 1,422,767 (577,516) -0.3% LOCAL REVENUES 96,243,298 92,987,042 3,256,256 1.6% OTHER REVENUES 371,957 10,000 361,957 0.2% TOTAL REVENUES 205,539,280 202,328,788 3,210,492 EXPENDITURES: INSTRUCTIONAL SERVICES 121,540,151 119,636,495 (1,903,656) -1.0% INSTRUCTIONAL SUPPORT SERVICES 30,241,415 35,237,781 4,996,366 2.5% OPERATIONS & MAINTENANCE 24,359,609 23,324,132 (1,035,476) -0.5% AUXILIARY SERVICES 5,899,051 6,370,789 471,738 GENERAL ADMINISTRATIVE SERVICES 11,214,224 7,418,853 (3,795,371) -1.9% DEBT SERVICES 1,227,753 - 0.0% OTHER EXPENDITURES 1,957,572 5,236,836 3,279,264 1.7% TOTAL EXPENDITURES 196,439,775 198,452,640 2,012,865 1.0% OTHER FUND SOURCES (USES): TRANSFERS IN 323,193 34.1% OTHER FUND SOURCES 1,908,749 2,149,033 (240,284) -25.3% TRANSFERS OUT 1,500,132 3,098,053 1,597,922 168.4% TOTAL OTHER FUND SOURCES (USES) 731,810 (949,020) 1,680,831 177.1% EXCESS REVENUES & OTHER SOURCES OVER(UNDER)EXPENDITURES & OTHER FUND USES 9,831,316 2,927,128 6,904,188 235.9% BEGINNING FUND BALANCE 844,421 ENDING FUND BALANCE $ 10,675,737 $ 3,771,549 $ 6,904,188 183.1% RESERVED FUND BALANCE (ENDING) 1,625,597.38 1,625,597 43.1% UNRESERVED FUND BALANCE (ENDING) 9,050,139.77 3,771,549.09 5,278,591 140.0% 10,675,737.15 REQUIRED FUND BALANCE (ALSDE) 16,369,981.23 % COVERAGE OF REQUIRED FUND BALANCE 55.3% 23.0% 32.2%

Revenue/Expenditures As % of Total Revenues

Revenues (by Source) * * Percentage allocations are presented net of capital bond proceeds (~$68,000,000) in order to normalize the revenue allocation between funding sources.

Expenditures (by Function) * * Percentage allocations are presented net of capital construction outlay (~$86,225,000) in order to normalize true direction of District expenditures.

Fiscal Year 2014 Special Initiatives EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

Huntsville City Schools Supplements Purpose Attract and retain HCS faculty/staff to participate in extracurricular academic and character development activities to further promote our students to higher levels of mental and physical performance and personal growth to help them succeed in life.

Huntsville City Schools Supplements Overview Supplements are given at the discretion of the district Governed by HCS Policy 5.4, Supplemental Duties By appointment at district level (with principal input) NOT an entitlement or guaranteed by tenure Assignments to be made and approved on an annual basis May be removed or resign from supplemental (i.e., coaching) position at any time

Huntsville City Schools Supplements Overview Regardless of whether they are certified or classified employees or non-HCS employees, athletic and academic coaches will receive the same supplement amount With the exception of classified employees whose job duties are substantially similar to their coaching duties, classified athletic and academic coaches are considered “volunteers” Volunteer coaches will not receive overtime for any of the volunteer activities performed in their coaching capacity

Huntsville City Schools Supplements Examples Academic: Academic Competition; Math Team; National Honor Society; Science Team; Career Tech; Debate; Foreign Language; Robotics; Cyber Security, etc. Athletics: High School/Middle School Athletic Directors; Head/Assistant Coaches (Football, Basketball, Baseball, Cheerleading, Wrestling, etc.) Arts: Band Directors/Assistants; Choral; Art Club; Drama; Newspaper/Journalism; Literary Publications Community: Junior/Senior Class; Service Clubs; Student Council; Yearbook; Webmaster; Safety Coordinator

Huntsville City Schools Supplements New Supplements: High School/Middle School Athletics Directors: Oversee all athletics programs for the school; will also manage their school’s supplement program (with the exception of their own) Career Tech: Regional/ International-level performance teams (Green Car Team/Culinary Arts) IB Coordinators (moved from principal’s books) Cyber Security Robotics Student to Student STEM Coordinators School Webmasters School Safety Coordinators District Scholarship Coordinator Deleted: Credit Recovery Coordinator

Huntsville City Schools Supplements Rate Changes Increase in Current Supplements All will see an increase Rates will meet or exceed those paid in Madison City and Madison County for comparable duties Larger supplement increases will be “stepped” Last year’s (2012-2013) rate will be Step 1 Those in second year or more will receive Step 2 Increase each year to Step 4 Effective Date: 2014 Budget Year (Oct 1, 2013)

Huntsville City Schools Supplements Examples (Not All Inclusive) Program School Level Madison County Madison City Huntsville City Schools Athletic Director High School $ - $4,000 Band (Head) $6,000 $8,000 $8,500 Baseball (Head) $4,700 $6,025 Basketball (Head) $9,000 $9,025 Career Readiness $ - $3500 - $8500 Competitive Academic Team $1,000 $1,800 $2,200 Cross Country Boys and Girls $600 $1,500 Cyber Security $1,000 - $5,000 Football (Head) $10,000 $13,000 Football Assistant OC/DC $4,500 $6,250 Football Assistant $3,200 $5,000 Robotics $1,000 - $5000 STEM Coordinator $2,000 Service Clubs $200 $250

Huntsville City Schools Supplements Examples (Not All Inclusive) Program School Level Madison County Madison City Huntsville City Schools Webmaster K-12 $ - $1,000 - $2000 Artist Director Choreographic Magnet $6,000 Artist Director Ensemble Production Artist Director Orchestra Artist Director Vocal Band Middle School $2,400 $3,850 Cheerleaders $1,800 $1,870 Choral $900 $1,320 Football (Head) $4,000 $4,400 IB Coordinator STEM Coordinator $2,000 Academic Competition Coordinator Other $6,050 Scholarship Coordinator $1,000 School Safety Coordinator $275

Fiscal Year 2014 Capital Projects EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

Fund Balance Historical/Projected

Fund Balance Coverage Historical/Projected

Financial Forecast: Fiscal Year 2014 ALSDE Foundation Funding: Education Trust Fund appropriations (~$50M) diverted to fund private school transfer credits (Alabama Accountability Act). While HCS saw a modest increase in pupil enrollment, there is a decrease in the number funded teaching units (5.7 units, loss of $355,000 in funding). Although Foundation revenues allocated for fringe benefits and other current expenses increased by $1.5M, so did the required 10 Mill Foundation match (paid from local funds). EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

Financial Forecast: Fiscal Year 2014 (cont’d) ALSDE Foundation Funding (continued): Meaning…the cost burden for the Foundation units’ salary increase, which will take effect in October 2012, and the 1.73% increase in TRSA match will fall on the District. Total estimated cost of the changes in the Foundation Program to Huntsville City Schools in Fiscal Year 2014 is approximately $2M. EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

Financial Forecast: Fiscal Year 2014 (cont’d) USDE Federal Funding: Reduction(s) in 2014 Federal Funding for HCS Title I, Part A $ 380,000 Title I, Part D $ 127,000 Title I, School Improvement $ 350,000 Title II, Part A $ 553,000 IDEA, Special Education $ 180,000 Total Reduction(s) $ 1,590,000 EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

Financial Forecast: Fiscal Year 2014 (cont’d) Huntsville City/Madison County Funding: Based on current projections, we anticipate sustaining a General Fund balance between 105% and 110% of the required balance through fiscal year 2015 (barring proration or unanticipated decline in the local economy). No solid projection beyond 2015 at this point. Requires that we exercise caution when considering new/future recurring expenditures not otherwise included in this budget. Regarding Capital Projects : Anticipate that long term rates on municipal debt are likely to increase in the near term. Will recommend selling of final increment of debt to complete the capital plan this Fall. At current rates, HCS has sufficient capacity to service the cost of additional capital. EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY

QUESTIONS EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY EXHIBIT F-I-A FUND TYPES & ACCOUNT GROUPS GOVERNMENTAL PROPRIETARY FIDUCIARY ACCT GROUPS SPECIAL DEBT CAPITAL ENTERPRISE TRUST & F/A & DESCRIPTION GENERAL REVENUE SERVICE PROJECTS INTERNAL AGENCY L/T DEBT -------------------------------------- -------------- ASSETS & OTHER DEBITS: CASH & CASH EQUIVALENTS 9,770,165.15 9,733,973.38 4,500.26 64,873,420.93 0.00 529,508.68 INVESTMENTS 2,094.75 RECEIVABLES ALLOWANCE FOR DOUBTFUL ACCTS INTERFUND RECEIVABLES 1,500,000.00 OTHER RECEIVABLES 5,321,734.39 4,111,162.47 730.39 INVENTORIES 316,421.31 OTHER ASSETS FIXED ASSETS 475,653,053.75 ACCUMULATED DEPRECIATION OTHER DEBITS AMT AVAILABLE IN DEBT SVC AMT PROV FOR PMT OF L-T DEBT 27,802,277.77 TOTAL ASSETS & OTHER DEBITS 16,593,994.29 14,161,557.16 530,239.07 503,455,331.52 LIABILITIES & FUND EQUITY: LIABILITIES: SALARIES & BENEFITS PAYABLE 274,082.01 PAYROLL W/H & DED PAYABLE 56,931.71 CLAIMS PAYABLE 18,950.00 5,362.88 OTHER PAYABLES INTERFUND PAYABLES 3,491,350.69 53,425.10 OTHER LIABILITIES 1,855,799.78 LONG-TERM LIABILITIES 2,133,874.44 TOTAL LIABILITIES 5,918,257.14 3,414,587.76 FUND EQUITY: INVESTMENT IN FIXED ASSETS RETAINED EARNINGS CONTRIBUTED CAPITAL RESERVED FUND BALANCE 1,625,597.38 485,435.30 1,854,033.30 UNRESERVED FUND BALANCE 9,050,139.77 10,261,534.10 63,019,387.63 473,307.36 TOTAL FUND EQUITY 10,675,737.15 10,746,969.40 TOTAL LIABILITIES & FUND EQUITY QUESTIONS