Presentation Capital Projects Funds Note - This presentation and other budget documents are available on the District’s website 1

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 In the District’s General Fund (operating budget), losses in tax collections may be offset by Legislative action that increases state (FEFP) funding  In the Capital Funds, there is no “commitment” by the Legislature to offset losses in tax collections  Also, state-funded capital programs have essentially disappeared (only CO&DS continues)  Between and , PECO “New Construction” allocations averaged $5.5M. Since , we have not received any funding.  During the same period, PECO “Maintenance” allocations averaged $1.5M. Since , we have not received any funding.  Note - The Legislature has continued to provide PECO funds, but the funds are distributed exclusively to charter schools Note - This presentation and other budget documents are available on the District’s website 6

 In addition to ad valorem (property) taxes, there are two other local revenue sources that may only be used for capital expenditures  Sales Tax Collections – An additional ½ cent sales tax was reauthorized (through 12/31/2026) by voters in  Impact Fees – The St. Lucie County Board of County Commissioners approves the ordinance that provides the amount of impact fees new development must pay.  These funds have also declined since (see the next chart) Note - This presentation and other budget documents are available on the District’s website 7

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 Each year’s funding is established as follows:  State funding – PECO and CO&DS allocations are determined by Legislative action (amounts usually not available until May)  Local funding – Property tax estimates require the value of the underlying tax base, which is provided by the Property Appraiser’s certification of taxable values (not available until July). Note – The Legislature can also affect this revenue source by changing allowable millage rates  Local funding – Sales Tax Collections are based on historical trends  Local funding - Impact Fee Collections are based on historical trends Note - This presentation and other budget documents are available on the District’s website 9

 Once funding is established, projects are prioritized via a review of facility needs and requests. However, the “first priority”, which must be fully funded, is debt service.  For , the funded projects are provided in the accompanying spreadsheet (the funded projects are also listed in the District’s Long-Range Capital Plan)  As shown in the long-range plan, funding requests exceed available resources. Since the Board must approve a balanced budget each year, prioritization and project deferral are required. This process has already started for (a planning meeting, with staff from Finance, ITS, Facilities, Security, Risk Management, and transportation, was held on 10/15/13). 10