Detroit Public Schools Detroit, Michigandetroitk12.org/data/finance/docs/Final-Detroit Public Schools CAFR... · Detroit Public Schools Detroit, Michigan Comprehensive Annual Financial

Detroit Public Schools Detroit, Michigan

Comprehensive Annual Financial Report

For the Fiscal Year Ended

June 30, 2003

Prepared by:

Detroit Public Schools

Division of Financial Services

Published November 20, 2003

Detroit Public Schools Contents

Introductory Section Letter of Transmittal i-xvii Organizational Chart xviii District Officials xix ASBO Certificate of Excellence in Financial Reporting xx Certificate of Achievement for Excellence in Financial Reporting xxi Financial Section Independent Auditor’s Report Letter 1-2

Management’s Discussion and Analysis 3-21

Basic Financial Statements

District-wide Financial Statements: Statement of Net Assets 22 Statement of Activities 23

Fund Financial Statements - Governmental Funds: Balance Sheet 24-25 Reconciliation of the Balance Sheet of Governmental Funds to the

Statement of Net Assets 26 Statement of Revenue, Expenditures, and Changes in Fund Balances 27-28 Reconciliation of the Statement of Revenue, Expenditures, and

Changes in Fund Balances of Governmental Funds to the Statement of Activities 29-30

Fiduciary Fund - Statement of Fiduciary Net Assets 31

Fiduciary Fund - Statement of Changes in Fiduciary Net Assets 32

Notes to the Basic Financial Statements 33-50

Required Supplemental Information

Budgetary Comparison Schedule - General Fund 51-56

Detroit Public Schools Contents (Continued)

Other Supplemental Information

Nonmajor Governmental Funds: Combining Balance Sheet 57-58

Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 59-60

Budgetary Comparison Schedule General Fund:

General Purpose 61-66 Designated Special Purpose Grants 67-72 Adult Education 73-74 Special Education 75-77 Community Uses 78

Athletic Fund 79 Food Service Fund 80 Bond Redemption Fund 81 Judgment Levy Fund 82 Durant Bond 83 1986 Site Improvement Bond 84 Schedule of General Capital Assets by Function 85-86 Schedule of Changes in General Capital Assets by Function 87-88 Bond Premium 89-90

Debt Information

Detail of Bonded Debt 91-104 Schedule of Bond Principal and Interest 105-114

Statistical and Other Information Section (Unaudited) Property Tax Information

Summary of Property Tax Data 115-117 Ten-year Summary of Property Tax Rates 118 Assessed Valuation Data - Property Type 119 Assessed Valuation Data - Ten Largest Taxpayers 120 Construction and Property Values 121

Detroit Public Schools Contents (Continued)

Statistical and Other Information Section (Unaudited) (Continued) Multiple-year Summaries

Ten-year Comparison of Debt Service Funds to General Fund Expenditures and Other Uses 122

Ten-year Comparison of Bonded Debt to SEV/Taxable Value and Population 123 Ten-year Summary of General Fund Revenue and Expenditures 124-125 Ten-year Comparison of Unreserved Fund Balance (Deficit) to Expenditures

and Other Uses 126

General Information Schedule of Direct and Overlapping Debt 127 Schedule of Legal Debt Margin 128 Schedule of Investments 129-130 Schedule of Major Insurance Coverage 131-132 Summary of Buildings and Sites 133-140 Graduate Information 141 School Lunch Program 142-143 Pupil Transportation Data 144 Demographic Statistics - City of Detroit 145 Largest Employers - City of Detroit 146 District Staffing 147 General Fund Revenue by Source 148-149 Certified Staff Data 150

Federal Awards Supplemental Information Issued Under Separate Cover

Introductory Section

i

November 20, 2003 Citizens and Board of Education Detroit Public Schools Detroit, Michigan We are hereby submitting the Comprehensive Annual Financial Report (CAFR) of the Detroit Public Schools (the “School District”) for the fiscal year ended June 30, 2003. State and federal statutes require that the School District issue annual financial reports and that such reports be audited by an independent firm of certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report and all appropriate disclosures for the fiscal year ended June 30, 2003 in an effort to provide all interested parties information on the financial condition of the Detroit Public Schools. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Division of Finance of the Detroit Public Schools. To provide a reasonable basis for making these representations, management of the Detroit Public Schools has established a comprehensive internal control framework that is designed both to protect the Detroit Public Schools’ assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the School District’s financial statements in conformity with GAAP (generally accepted accounting principles). Because the cost of internal controls should not outweigh their benefits, the Detroit Public Schools’ comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of all operations of the various district-wide and governmental funds of the School District. All disclosures necessary to enable the reader to gain an understanding of the Detroit Public Schools’ financial activities have been included.

ii

The School District’s financial statements have been audited by Plante & Moran, PLLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the School District for the fiscal year ended June 30, 2003 are free of material misstatement. The independent audit consisted of reviewing, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion, suggesting that the School District’s financial statements for the fiscal year ended June 30, 2003 are fairly presented in conformity with GAAP. In addition, in accordance with Government Auditing Standards, the School District issued the federally mandated single audit, designed to meet the special needs of federal grantor agencies. The standards governing single audit engagements require the independent auditor to report on both the fair presentation of the financial statements and on the audited School District’s internal controls and compliance with legal requirements, especially concerning the administration of federal awards. This report is available separately in the School District-issued single audit report. Reporting Entity and Organization Detroit Public Schools is an independent reporting entity that follows the criteria established by the Governmental Accounting Standards Board. All funds of the School District are included in this report. Report Format The Comprehensive Annual Financial Report is designed to meet the needs of a vast spectrum of readers and is segregated into the following major components: • Introductory Section This section provides an introduction to the reader to the School District and to the nature of this report. Included within this section are the letter of transmittal and an organizational chart for the School District. • Financial Section The management’s discussion and analysis (MD&A), independent auditor’s report, district-wide financial statements, fund financial statements, notes to the financial statements, and required and other supplemental information are included in this section.

iii

• Statistical Section Although this section contains financial information, these tables and exhibits differ from the financial statements in that they present some non-accounting data. Major portions of this information compare up to 10 years of data, and are intended to reflect economic data, financial trends, and the fiscal status of the School District. New Reporting Model This is the second year that the School District has used a reporting format that fully implements the Government Accounting Standards Board (GASB) No. 34 financial statement reporting model. The major changes to the School District’s Comprehensive Annual Financial Report include a full-accrual basis government-wide statement of net assets and statement of activities, as well as management’s discussion and analysis (MD&A) of operations. The GASB No. 34 financial reporting model is mandatory for all State and local governments and dramatically changes the presentation and content of the School District’s external financial statements. This School District is very proud of the efforts of the finance team to fully implement the requirements of the new model. The School District is committed to full disclosure for all financial information and, by adopting these changes, maintains this commitment to our public. The GASB No. 34 model provides a more accurate reflection of the financial condition and the results of operations. The area of fiscal accountability requires individual governments to demonstrate compliance with public decisions concerning the raising and spending of public funds, normally during a fiscal year. The area of operational accountability requires individual governments to demonstrate how it has met or plans to meet any operating objectives that have been established. The new statements encourage both fiscal and operational accountability and provide better information for the reader, including investors and creditors. GASB No. 34 requires management to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a management’s discussion and analysis (MD&A). This letter of transmittal is designed to complement the management’s discussion and analysis and should be read in conjunction with it. The School District’s MD&A can be found in the financial section immediately following the report of the independent auditors. Profile of Detroit Public Schools The Detroit Public Schools, incorporated in 1842, is a statutory public body created by the State of Michigan (officially known as the School District of the City of Detroit) and functions under the provisions of the State of Michigan’s Public Act 451. The School District encompasses an area of approximately 140 square miles, and is located within the City of Detroit, Wayne County, Michigan. Although the corporate boundaries of the School District are coterminous with the corporate boundaries of the City of Detroit, the School District is a totally separate governmental unit.

iv

Pursuant to amendments to Public Act 451, Part 5A, effective March 26, 1999, (the “Reform Legislation”), the mayor of the City of Detroit, Michigan shall appoint six members of the school Reform Board for the School District. The final member of the Reform Board, for the first five years of the legislation, shall be the Superintendent of Public Instruction of the State (or his designee). The Reform Board replaced the School District’s 11-member elected Board of Education. Currently, one vacancy exists on the Reform Board. In February 2003, the mayor appointed four new board members, from which one individual was appointed as the new chairperson. In July 2000, pursuant to the Reform Legislation, the Reform Board appointed Kenneth Stephen Burnley, Ph.D. as chief executive officer of the School District, succeeding an interim chief executive officer. The chief executive officer may exercise all the powers and actions otherwise vested in law in the formerly elected Board of Education of the School District and its secretary and treasurer and all additional powers and duties provided under the Reform Legislation. Those powers and duties include, but are not limited to, authority over the expenditures of all School District funds, including proceeds from bonded indebtedness; rights and obligations under collective bargaining agreements and employment contracts entered into by the elected Board of Education; to prosecute and defend litigation; obligations under any judgment entered against the elected Board of Education; and rights and obligations under statute, rule, and common law. Pursuant to the Reform Legislation, the question of whether to retain the Reform Board and the chief executive officer will be presented to the electors of the School District in November 2004. If a majority of the electors in the School District vote to keep the Reform Board and the chief executive officer, the Reform Board and the chief executive officer will continue and the mayor’s authority to appoint and remove members of the Reform Board will continue, subject only to the question being placed on future ballots, no more than once every five years, upon the filing of petitions signed by the requisite percentage of electors. If a majority of the electors in the School District vote not to keep the Reform Board and the chief executive officer, the Reform Board shall arrange for the election of a new elected Board of Education. Effective on the next July 1 following such an election, the newly elected Board of Education shall serve as the governing body of the School District and the powers of the Reform Board and the chief executive officer shall cease and the provisions of the Reform Legislation shall no longer apply to the School District. Senate Bill 157, which proposes to move the date of the election to restore an elected Board of Education from November 2004 to August 2004, has passed the Senate and has been introduced into the House but is awaiting action. The School District will continue to monitor the outcome of any pending legislation. None of the proposed legislation relating to the change in the date of the election or the change in the governance structure is expected to have a significant financial impact.

v

Also currently under discussion, however, is the removal of a $15 million supplemental appropriation received by the Detroit Public Schools as part of the Reform Legislation. Should the legislature remove the $15 million supplemental payment, for the next fiscal year the School District will make the appropriate financial adjustments. During this fiscal year, the School District relocated and consolidated its main headquarters from the Detroit cultural district to the newly renovated and upgraded facilities in the New Center area of the City of Detroit (the “City”). The new facilities, acquired through the acquisition of a condominium interest in the historic Fisher Building, keeps the School District headquarters within a one-mile radius of the City’s cultural district. Profile of Detroit The City of Detroit is known as the “Automotive Capital of the World”. Three of the largest international automotive manufacturers have headquarters located in the metropolitan area, specifically, the world headquarters of General Motors and Ford Motor Company, and the American headquarters of DaimlerChrysler. Students and residents take advantage of the many recreational and cultural opportunities located within the city limits of Detroit. Detroit is home to one of the nation’s premier athletic centers consisting of the newly constructed Ford Field and the Comerica Park baseball stadium, both providing state-of-the-art sports facilities. In the theatre district there is the Gem Theatre, the Music Hall, the Opera House, the historic Fox Theater, home to the legendary Motown Revue, and the newly renovated Max Fisher Theater at Orchestra Hall. One of the nation’s most beautiful city-owned recreational facilities is the City of Detroit’s Belle Isle Park, surrounded by the Detroit River. The Detroit River also serves as the international border separating the City of Detroit from its international neighbor, Canada, making Detroit the busiest port of entry with Canada. Budgetary Controls The annual budget serves as the foundation for the School District’s financial planning and control. Enrollment forecasts are prepared and then staffing and expenditure allocations are developed in January for local schools. Also in January, central support staff members are given a preliminary budget based on current activities. Both the allocations and preliminary budgets are used as the starting point for budget development. The proposed budget is then presented to the chief executive officer and his cabinet for review. After the review is completed, the proposed budget is displayed for the public for three days in June. A public hearing is held in late June. The budget is then adopted on or before July 1 of each year. The budget presentation, as well as the entire budget along with updates, is posted to the School District Web site at various times throughout the year to provide public access and viewing.

vi

Management is responsible for maintaining budgetary controls to ensure that budgets are in compliance with the legal provisions of the State of Michigan Uniform Budgeting and Accounting Act, and within the annual appropriations adopted by the chief executive officer. Detailed line-item budget reports are provided to the appropriate managers, who have been delegated the responsibility for monitoring and controlling their respective budget allocations. With the implementation of our new financial accounting system in January 2003, all budget managers also gained immediate on-line access to their budget, expenditure, and encumbrance information. An encumbrance system is utilized to measure the uncommitted funds available. Budgets are revised throughout the year to appropriately address variances that occur in enrollment, revenue, expenditures, and unforeseen events. Economic and Geographic Makeup The School District is located in the major urban City of Detroit, which has approximately 921,312 inhabitants according to U.S. Census Bureau 2002 data. This population is made up of approximately 47 percent male and 53 percent female. According to the information provided by the American Community Survey for 2002, 83 percent of the City of Detroit’s population is of African American descent, 11 percent is Caucasian, 5 percent is of Hispanic origin, and 1 percent is of Asian descent. This data is based on people reporting only one race. The City of Detroit has a poverty rate of 26.4 percent. With 336,000 households identified within the City, 60 percent are made up of families, with the balance of 40 percent accounting for people living alone. These households represent individuals with a mean and median household income of $39,801 and $32,619, respectively. For the employed population 16 years and older, the leading industries in the City of Detroit are manufacturing, education, and health and social services. National economic factors have a direct impact on the employment rate within the City’s limits. The state of Michigan has suffered 18 mass company layoffs in the last reporting period based on the Bureau of Labor Statistics information as of September 2003. The Bureau also indicated that the unemployment rate for the nation was 6.3 percent; the state of Michigan had a rate of 8.0 percent during the period ended July 2003. The economy of the City of Detroit is very dependent on automobile manufacturing. During recessional periods, the City of Detroit usually experiences an unemployment rate higher than the state average, and in July 2003, the City’s unemployment rate was 8.3 percent. About Detroit Public Schools The School District is divided into geographically defined constellations. Each constellation has administrative responsibility for the elementary, middle, and high schools located within its boundaries, which include regular, special education, vocational/technical, and alternative programs.

vii

Student Funded Membership As this chart clearly shows, the Detroit Public Schools has been experiencing a steadily declining K-12 funded student membership. The 2003-2004 school year and the 2004-2005 school year are also expected to have declining student enrollment and thus a declining funded student membership count.

K-12 Student Membership For Funding Purposes

148,127

152,627

157,003

159,694

162,693

168,213

173,848

173,871

173,080

169,996

167,551

167,132

182,516

- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

Projected 2004/2005

Projected 2003/2004

2002/2003

2001/2002

2000/2001

1999/2000

1998/1999

1997/1998

1996/1997

1995/1996

1994/1995

1993/1994

1992/1993

Scho

ol Y

ear

Membership

viii

An analysis of this historical and forecasted declining student enrollment is presented below.

State Aid K-12 Membership Analysis

School Year

Student Membership For Funding

Purposes Increase

(Decrease)

Percent Increase

(Decrease)

Per Pupil State Aid Amount

Additions (Reductions) In

State Aid Due To Changing

Enrollment

Projected 2004/2005 148,127

(4,500) -2.95% $ 7,180.00 $ (32,310,000)

Projected 2003/2004 152,627

(4,376) -2.79% $ 7,180.00 $ (31,421,403)

2002/2003 157,003

(2,690) -1.68% $ 7,180.00 $ (19,317,503)

2001/2002 159,694

(2,999) -1.84% $ 6,884.00 $ (20,646,149)

2000/2001 162,693

(5,521) -3.28% $ 6,584.00 $ (36,347,235)

1999/2000 168,213

(5,634) -3.24% $ 6,283.60 $ (35,404,567)

1998/1999 173,848 (23) -0.01% $ 6,045.60 $ (137,779)

1997/1998 173,871 791 0.46% $ 6,045.60 $ 4,779,893

1996/1997 173,080 3,084 1.81% $ 5,891.60 $ 18,171,403

1995/1996 169,996 2,445 1.46% $ 5,736.60 $ 14,023,807

1994/1995 167,551 419 0.25% $ 5,583.60 $ 2,339,919

1993/1994 167,132

(15,384) -8.43% $ 4,713.20 $ (72,508,482)

1992/1993 182,516 N/A N/A $ 4,423.85 N/A

Actual Totals

(25,512) $ (145,046,693)

Averages

(2,551) -1.45% $ (14,504,669)

ix

The initial significant loss of students occurred during the 1993-1994 school year and was the result of a major labor dispute. During the remainder of the 1990s, the School District was able to maintain a fairly stable student population. However, upon entering the next century, the School District began a period of decline. Some of the decline can be attributed to a declining birth rate. However, the School District is faced with a number of significant challenges in attempting to halt or at least slow the rate of student loss. Charter schools and private schools have taken a significant number of students. In addition, students enroll in surrounding districts. An early childhood initiative was successful in reducing the rate of decline beginning with the 2001-2002 school year. However, as that market became saturated, we have witnessed a return to the five-year average reduction in funded student membership. The School District believes that the best defense against continuing student membership decline is the improvement of the School District. Through the improvement of the physical facilities, providing a safe and clean environment, developing a more efficient and effective organization, and significantly improving student achievement, we are convinced that we can slow the rate of student membership decline. Educational Programs The School District has 258 schools, consisting of 167 elementary schools, 34 middle schools, 26 high schools, 5 early childhood centers, 13 alternative schools, 8 special education schools, and 5 vocational and career technical centers. These locations provide services to 157,003 K-12 students. The School District’s comprehensive educational programs are designed to meet the needs of every student. This includes, but is not limited to, males and females, disadvantaged and non-disadvantaged, students of diverse race and ethnicity, students with disabilities, and students with limited English proficiency. The Vision of the Detroit Public Schools is to become a competitive leader in academic achievement through the use of continuous improvement strategies, making our schools the first choice for Detroit residents and other eligible students. Our Mission is to develop a customer and data-driven, student-centered learning environment in which students are motivated to become productive citizens and lifelong learners, equipped with skills to meet the needs of their next customer, higher education, or the world of work. Our Goal is to improve student achievement and performance by: • Creating safe and clean school environments • Enhancing parental and community involvement • Transforming the School District into an efficient and effective organization

x

In order for its students to achieve, the School District has instituted a support system that focuses on the elimination of any barriers to learning. This includes social workers, psychologists, occupational therapists, teacher consultants, nurses, etc. Programs have been designed to increase parental involvement and awareness such as the Gear Up Detroit program, which encourages sixth graders and their parents to recognize the importance of higher education. The School District is currently on an upward move. There have been several significant milestones this year related to the goal of improving student achievement. One of those is the School District’s major investment in the Open Court Reading Literacy program, for which recent results have shown significant gains in state-wide reading scores for Detroit Public School students. After only one year, classroom teachers are reporting noteworthy growth in their students. The Detroit Public Schools also began a process of standardizing the basic curriculum. This change has helped tremendously with the transitional student because they will experience the same pedagogy at any location throughout the School District. Dr. Kenneth Stephen Burnley (School District Chief Executive Officer, CEO) has also organized a group of the lower performing schools in a category entitled “CEO District.” To further enhance performance for this group, they are given the highest priority for resource allocations to encourage and promote student achievement. A standard model has been designed for these schools to include responsive data-driven professional development, principal and teacher coaches, and instructional specialists to head each facility. This past year, the School District experienced a record number (424) of graduating seniors with a grade point average (GPA) of 3.5 and above. Realizing the future will demand more specialization. The School District offers 84 career/technical education programs, offered primarily at its career and technical centers. Hospitality and food services programs are currently offered at Breithaupt and Golightly Career and Technical Centers. In partnership with Wayne County Community College, advanced nursing programs are offered at the Crockett Career and Technical Centers. Davis Aerospace Career and Technical Center is one of the few facilities in the nation that offers pilot training to high school students. Cosmetology programs are also included at the comprehensive high schools. The success of the School District is defined by the achievements of its students. By setting higher standards for students, teachers, and administrators, and by improving the curriculum and the physical quality of our classrooms, we have made strides toward achieving greater student performance.

xi

Initiatives Early student learning will result in future success. As a result of an ambitious enrollment campaign, the number of preschool and kindergarten children increased. In an effort to accommodate our working parents, the School District made great strides in enhancing its early learning programs by providing before and after school care (the wrap-around program). During the 2002-2003 school year, approximately 18,979 pre-kindergarten and kindergarten students were served in 835 classrooms. The efforts of this continued campaign have resulted in significant improvements in our test results in the early grades and increased levels of kindergarten enrollment. The School Improvement Plan (Every Child Will Learn) was developed to set higher standards for learning. With improving student achievement and performance as the number one goal, the school improvement plan incorporates four guiding principles into every academic program: • Maintaining high expectations • Focus on children • Providing teachers with necessary resources • Monitoring student progress and holding staff accountable for results Each school in the School District was responsible for developing an individual School Improvement Plan. These plans are subject to peer review and are expected to be completed within this school year. The School District knows that children need to feel safe and secure in a positive environment which is conducive to learning. The Student Code of Conduct was revised to be aligned with the State of Michigan’s Revised School Code as it pertains to disruptive and reportable offenses. Closed-circuit security cameras have been installed in every high school and are being installed in every middle school. The School District expanded the public safety force to adequately staff all high schools and middle schools, and has purchased 12 new police cars. The Department of Site Management devotes the majority of its resources and efforts in maintaining the grounds of our schools. During the summer of 2003, this department has impacted 489 facilities and provided 12,547 different types of services. The facilities they service include Detroit educational and auxiliary facilities as well as vacant properties. Their services include, but are not limited to, fencing, paving, playground and athletic field maintenance, tree trimming and removal, and turf maintenance. Daily on-site health care services and on-site clinics were implemented in 51 schools provided by various health care sponsors. The mobile and on-site clinics are equipped to manage acute illnesses, administer daily medications, provide immunizations, and perform other medical duties. The Pediatric Mobile Team, sponsored by the Detroit Medical Center, also provides health care to 32 schools.

xii

The Food Service Department continues with a number of initiatives. During this fiscal year, the percentage of students being served school lunch rose from 12.38 percent to 16.35 percent - the highest in 10 years. Total meals served, breakfast, lunch, and dinner, rose to 24,760,443 meals from 21,748,102 from the previous year, a 13.9 percent increase. Food service as part of the building program also has remodeled and upgraded 103 kitchens since fiscal year 2001 and there are 64 more kitchens currently being remodeled with expected completion by the end of the 2005 fiscal year. The School District has a comprehensive technology plan. The scope of this plan includes delivering technology to students, teachers, administrators, support personnel, and all those who interface with the School District. Desktop and laptop computers have been made available and networked both locally and district-wide to provide a more enriched classroom experience. The plan takes advantage of grants and other funding sources to build upon the program core. The most widely known available program is E-Rate. With these funds, where the old building structure makes wiring difficult, the School District has installed wireless technology. Since many of our school facilities are more than 60 years old, this type of technology allows for a quick and more efficient computer network installation process. With the implementation of PeopleSoft Financials Management System, Human Capital Management System, Contracting and Procurement module, and Enterprise Performance Management module, an enterprise-wide business management solution has been installed. This installation has integrated all current information systems into one seamless information management solution. This system has enhanced our ability to automate processes and procedures, provide accountability, and be less paper intensive. Financial reporting and monitoring has been significantly enhanced with further improvements expected in the coming year. Payroll administration established a payroll service center to service School District employees. To better serve its employees, a direct deposit plan was initiated. Over 56 percent of the employees now participate. In addition, sealed payroll checks and deposit advices for all School District employees were implemented. The School District has also implemented for the first time an option for all salaried employees working less than 52 weeks a year to choose to have their paychecks distributed over 21 or 26 pay periods. This has enabled the staff to continue to receive income over the summer months and provided assistance to the Division of Finance in forecasting cash flow requirements. A revised chart of accounts was developed to be in compliance with the State of Michigan’s reporting structure. These revisions have been instituted in the new PeopleSoft financial system. The School District will become one of the first school districts in the state to report its year-end financial information electronically this year. Monthly automated financial reports are distributed to help managers and administrators to be more financially astute and accountable for budgetary monitoring and expenditure control.

xiii

Professional Development In partnership with the Michigan Department of Education and Wayne State University, the Limited License to Instruct (LLI) program designed to provide an alternative teaching certificate for high shortage curriculum subjects is still underway. This continues to be a primary “grow your own” initiative to supply quality certified instructors. During the year, the School District implemented the Leadership Academy. The academy addresses the professional development needs of School District school administration leaders, as well as other School District administrators. It was designed to provide principals and administrators with the required knowledge, skills, and understanding to lead the School District’s schools to excellence. The ASPIRES program is a component of the Leadership Academy, designed especially for assistant and aspiring principals. A financial training and technical support unit established under the Division of Finance provides training and support to all School District personnel. Throughout the last year, this unit provided training to 4,050 individuals encompassing 21,905 hours of training. A sampling of the classes presented is Computer Basics I & II; Payroll Roster Training; PeopleSoft Human Resources Placement; PeopleSoft Financials; Sub Finder Employee/End User Training; and Financial Management for School Principals. With the enactment of No Child Left Behind legislation, school staff - especially teachers - are required to have additional tools and resources. The School District has expanded its Leadership Academy to include more extensive training on State standards; School District goals; the new reading and math curriculum; test score usage; intervention strategies; and new responsibilities for monitoring school improvement planning and program implementation. Most math teachers received developmental tools, including curriculum guides and professional development courses in subjects such as Teaching with Technology and MEAP (Michigan Educational Assessment Program) Mathematics. Capital Improvement Plan The Capital Improvement Plan was developed to achieve the most value for the dollar. The original authority for $1.5 billion in bonds was approved by the citizens of the City of Detroit in 1994, to repair and construct school facilities throughout the School District. At the time of the approval, it was estimated that $3.9 billion was needed for necessary improvements to revamp the school system. However, these costs have risen to at least $5 billion due to inflation in construction and material costs, as well as further deterioration. During the first six years of the Capital Improvement Program, progress was slow and little was accomplished. Under the leadership of Dr. Kenneth Burnley, in 2000, a revamped Capital Improvement Program was instituted to achieve the most value for the dollar.

xiv

In order to complete the funding for the Capital Improvement Program during the month of October 2002, the School District sold and received net proceeds of $396 million (Series IV) in bonds; in April 2003, the School District sold and received net proceeds of $339 million (Series V) in bonds, the final series of the $1.5 billion in bonds. Over 80 percent of the original authority has been sold under Dr. Burnley’s guidance. The following is a recap of the activities for each bond series as of June 30, 2003:

Series

Net Proceeds Premiums and Interest Earned

as of June 30, 2003

Number of Projects

Underway or Completed

Expenses and Encumbrances

as of June 30, 2003

Net Available

to Fund Projects as of June 30, 2003

I $ 109,783,867 149 $ 104,047,804 $ 5,736,063 II 232,098,790 291 219,914,914 12,183,876 III 477,788,631 131 453,161,595 24,627,036 IV 399,960,026 33 269,671,339 130,288,687 V 340,260,686 39 67,815,217 272,445,469

Totals $ 1,559,892,000 643 $ 1,114,610,869 $ 445,281,131 The information includes expenditures for remodeling, site acquisition, program and project management, and architecture and engineering fees. The Capital Improvement Plan (CIP) is divided into eight major components: • New construction • Athletic field improvements • Special education • Improvements to existing schools • Health initiatives • Remodeling • Support services • Technology initiatives During the 2002-2003 school year, the School District continued its aggressive pace of new construction and remodeling. At the beginning of the 2002-2003 school year, the School District opened 10 new facilities. New elementary facilities include Charles H. Wright Academy, Schulze Elementary, Heilmann Park Elementary, and Howe Elementary. Major additions with early childhood components were built at existing school facilities located at Westside Multicultural Center, Golightly Educational Center, Greenfield Union Elementary, Priest Elementary, and Marquette Elementary.

xv

As of the end of the 2002-2003 school year, district-wide improvements were nearing completion and include upgrades to kitchens, electrical and technology, window and door replacement projects, parking upgrades, fencing and site lighting projects, auditorium renovations, and athletic field improvement projects. New construction continues for three new/replacement schools including Cass Technical High School, scheduled to open in 2005. The new facility will replace a century-old structure with a towering six-story building having educational space that will serve 2,200 students. The new facility includes state-of-the-art science and engineering labs, a dance studio, an auditorium with seating for 1,100, a gymnasium with a running track, a swimming pool with bleacher seating, a cafeteria and common area housed in a glass atrium, and a football field with a track and a softball diamond. The Ford High School for the Fine, Performing and Communication Arts will open in 2005 and will combine the current Detroit High School of the Performing Arts and the Communication and Media Arts High School. The six-story facility is located next door to the Max Fisher Complex in the heart of Detroit’s cultural center. The school will house the Public Broadcasting television station, as well as WDET radio station, providing students a unique opportunity for mentoring with professional Detroit Symphony Orchestra musicians, as well as professionals from the broadcast industry. The Educational Complex at Sinai will open in school year 2005-2006 and will include four schools blended together in a park-like setting. The campus will include a replacement high school for the current Renaissance High School, a school for the medically fragile, a K-8 foreign language immersion and cultural studies school (which will be located at the current Renaissance High site following extensive renovation), and the Randolph Career and Technical Center. Campus amenities will include a regional outdoor sports center including football, softball diamond, track, a practice field, and new play equipment. Construction is also progressing toward a 2005 opening for two of the School District’s historic facilities, Southeastern and Central High Schools. Each of these schools will be made new again with complete internal renovations and major additions. Central High School, the first high school in the state of Michigan, will become a revitalized community high school serving 1,200 students with restored and renovated science labs, rest rooms, and enlarged classrooms. A 55,000 square foot addition will house a new administrative suite, new gymnasium and locker rooms, new kitchen and cafeteria, and a new boiler/mechanical room. An outdated annex will be demolished and a football field and track will be added on the site along with new staff and visitor parking lots and restoration to the historic facility’s masonry and windows. The renovation and addition at Southeastern High School will transform it into a premiere high tech educational center providing a range of teaching pathways preparing students for professional and technical automotive careers. The project will add 80,000 square feet of space to the facility and include the automotive technology center, a new cafeteria, new gymnasium, and complete interior renovations.

xvi

Cash Management The School District has a cash management program designed to invest cash prudently in obligations partially insured by the Federal Deposit Insurance Corporation and investment vehicles authorized by the State of Michigan. Interest revenue totaled $1.8 million in the General Fund, $7.3 million in the Capital Projects Funds, and $500,000 in the Debt Service Funds. Risk Management The School District is self-insured for workers’ compensation and medical benefits. During the year ended June 30, 2003, actual workers’ compensation payments totaled $2,688,695. The School District also completed bidding for insurances and began a plan to begin insuring property and liability for the first time in years. Accomplishments and Acknowledgments Accomplishments The Association School Business Officials International (ASBO) has awarded the Certificate of Excellence in Financial Reporting and the Government Finance Officers Association of the United States and Canada (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the Detroit Public Schools for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2002. This was the first year the School District has received both prestigious awards. In order to be awarded Certificates of Excellence and Achievement, the School District published an easily readable and efficiently organized CAFR. The report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to both GFOA and ASBO to determine its eligibility for another certificate. The School District received a national award, the Outsourcing Center’s 2003 Editor’s Choice Award, for the partnership with Compuware to improve the School District’s information technology. The State of Michigan honored nine of the elementary schools with the Golden Apple Award, which is a cash award given to Michigan’s hard-working teachers and principals for high achievement.

xvii

Acknowledgments The preparation of this report was accomplished through the commitment, dedication, and tireless effort of the entire Division of Finance. We would also like to extend our thanks to other School District and non-School District personnel who assisted in the preparation of this report. Respectfully submitted,

Terrie Williams Michael D. Bridges Treasury/Senior Financial Analyst Director of Accounting

Eugene P. Smith Dori A. Freelain Executive Director of Accounting Deputy Chief Financial Officer

Ken A. Forrest Chief Financial Officer

xviii

ORGANIZATIONAL CHART June 30, 2003

The People

Board of Education

Chief Executive Officer Kenneth Stephen Burnley, Ph.D.

Senior Deputy Chief Executive Officer

Robert Moore

Chief Human Resources Officer Debra Williams

Human Resources

Chief Academic Officer Juanita Clay-Chambers (Interim)

Leadership & Educational

Chief Information Officer Roland Moore

Information Services

Chief of Staff Jennifer Joubert

Office of Chief of Staff

General Counsel Anthony Adams

Office of General Counsel

Auditor General April Royster

Internal Audit Office

Executive Director Linda Leddick

Research, Evaluation & Assessment

xix

List of Appointed Officials June 30, 2003

Board of Education Chairman William C. Brooks Secretary Gerald K. Smith, Ed.D. Member Belda Garza Member Michael F. Tenbusch Member Tom Watkins Member Geneva J. Williams

Cabinet Chief Executive Officer Kenneth Stephen Burnley, Ph.D. Senior Deputy Chief Executive Officer Robert F. Moore Chief Academic Officer (Interim) Juanita Clay Chambers Chief Human Resources Officer Debra Williams Chief Information Officer Roland Moore Chief of Staff Jennifer Joubert Auditor General April Royster General Counsel Anthony Adams Executive Director Linda Leddick

xx

xxi

Financial Section

Independent Auditor’s Report

To the Chief Executive Officer Detroit Public Schools

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Detroit Public Schools as of and for the year ended June 30, 2003, which collectively comprise the School District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Detroit Public Schools’ management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Detroit Public Schools as of June 30, 2003 and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The management’s discussion and analysis (identified in the table of contents) is not a required part of the basic financial statements but is supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management, regarding the methods of measurement and presentation of the required supplemental information. However, we did not audit the information and express no opinion on it.

2

To the Chief Executive Officer Detroit Public Schools

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Detroit Public Schools’ basic financial statements. The accompanying required supplemental information and other supplemental information, as identified in the table of contents, are not required parts of the basic financial statements. The required supplemental information is information required by the Governmental Accounting Standards Board; the other supplemental information is presented for the purpose of analysis. The required supplemental information and the other supplemental information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory section and statistical tables, as identified in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.

In accordance with Government Auditing Standards, we have also issued a report under separate cover dated November 20, 2003 on our consideration of the School District’s internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts, and grants. The report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

November 20, 2003


3

Management’s Discussion and Analysis

This section of the Detroit Public Schools’ annual financial report presents our discussion and analysis of the School District’s financial performance during the year ended June 30, 2003. Please read it in conjunction with the School District’s financial statements, which immediately follow this section.

Financial Highlights

• The School District’s financial position improved in fiscal year 2003. Total net assets

increased $0.2 million, or 0.13 percent, over the course of the year. While a modest increase, it is noteworthy given the extremely difficult financial circumstances within the School District, the state, and the nation.

• Due to a declining economy within the state of Michigan, the School District incurred an unanticipated reduction in State Foundation funding in May 2002 of $11.1 million.

• In line with the declining state economy, early projections by the City of Detroit that property tax collections for the General Fund would increase turned out to be overly optimistic, resulting in a budgeted shortfall of $16.6 million in total property tax collections.

• Overall revenues were $1.689 billion; expenditures were $1.696 billion, exceeding revenue by $7 million. However, due to the sale of assets, net assets increased by $0.2 million.

• Outlays for capital assets totaled $357.9 million. This included the opening of 10 new facilities.

• The School District completed the sale of $1.5 billion in bonds authorized by the 1994 election by issuing $389 million in bonds in October 2002 and $327 million in bonds in April 2003.

• The School District implemented the PeopleSoft Financials system during this fiscal year. While implementing the new financial system, the School District took the opportunity to revise its chart of accounts so that the chart of accounts became fully compliant with the newly revised State of Michigan Chart of Accounts for School Districts.

• With the full implementation of GASB No. 34 reporting and the beginning of the development of a Risk Management Department, the percentage of total expenditures devoted to instruction dipped slightly from 57.72 percent in fiscal year 2002 to 56.97 percent for fiscal year 2003. This drop of 0.75 percent can be directly attributed to the $12.1 million of expenditures related to risk-related activities and insurance coverage. These expenditures represent 0.79 percent of the change in spending devoted to instruction. Expenditures in this area were for the initial acquisition of insurances that the School District did not formerly possess and the implementation of risk management programs. All of these expenditures were charged to support services.

Detroit Public Schools Management’s Discussion and Analysis (Continued)

4

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Detroit Public Schools’ basic financial statements. The Detroit Public Schools’ basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The basic financial statements include two kinds of statements that present different views of the School District: • The first two statements are district-wide financial statements that provide both short-term

and long-term information about the School District’s overall financial status.

• The remaining statements are fund financial statements that focus on individual parts of the School District, reporting the School District’s operations in more detail than the district-wide statements.

• The governmental funds statements tell how basic services, such as regular and special education, were financed in the short term, as well as what remains for future spending.

• Fiduciary funds statements provide information about the financial relationships in which the School District acts solely as trustee or agent for the benefit of others.

The financial statement notes also explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplemental information that further explains and supports the financial statements with a comparison of the School District’s budget for the year. Figure A-1 shows how the various parts of this annual report are arranged and related to one another:


5

Figure A-1 Organization of Detroit Public Schools’ Comprehensive Annual Financial Report

District-wide Financial

Statements

Fund Financial

Statements

Notes to the Financial

Statements

Basic Financial Statements



Management’s Discussion and Analysis

Detail Summary

Transmittal

Statistical Information


6

Figure A-2 summarizes the major features of the School District’s financial statements, including the portion of the School District’s activities they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis highlights the structure and contents of each of the statements.

Figure A-2 Major Features of the District-wide and Fund Financial Statements

District-wide Statements

Fund Financial Statements

Governmental Funds Fiduciary Funds Scope Entire School District

(except fiduciary funds)

The activities of the School District that are not proprietary or fiduciary, such as regular instructional activities, special education, and building maintenance

Instances in which the School District administers resources on behalf of someone else, such as scholarship programs and student activities funds

Required financial statements

• Statement of net assets

• Statement of activities

• Balance sheet • Statement of

revenues, expenditures, and changes in fund balances

• Statement of fiduciary net assets

• Statement of changes in fiduciary net assets

Accounting basis and measurement focus

Accrual accounting and economic resources focus

Modified accrual accounting and current financial focus

Accrual accounting and economic resources focus

Type of asset/liability information

All assets and liabilities, both financial and capital, short-term, and long-term

Generally assets that are expected to be used and liabilities that come due during the year or soon thereafter; no capital assets or long-term liabilities included

All assets and liabilities, both short-term and long-term; funds do not currently contain capital assets, although they can

Type of inflow/outflow information

All revenues and expenses during year, regardless of when cash is received or paid

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and the related liabilities that are due and payable

All additions and deductions during the fiscal year, regardless of when cash is received or paid


7

District-wide Statements The district-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the School District’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two district-wide statements report the School District’s net assets and how they have changed. Net assets - the difference between the School District’s assets and liabilities - is one way to measure the School District’s financial health or position.

• Ultimately, increases or decreases in the School District’s net assets are an indicator of whether its financial position is improving or deteriorating, respectively.

• To assess the School District’s overall health, you need to consider additional non-financial factors such as changes in the School District’s property tax base and the condition of school buildings and other facilities.

In the district-wide financial statements, the School District’s activities are classified as governmental activities. All of the School District’s basic services are included, such as regular and special education, transportation, and administration. Most of these activities are financed by property taxes and State aid. Fund Financial Statements Fund financial statements provide more detailed information about the School District’s funds, focusing on its most significant or “major” funds - not the School District as a whole. Funds are accounting devices the School District uses to keep track of specific sources of funding and spending on particular programs:

• Some funds are required by State law and by bond covenants.

• The School District establishes other funds to control and manage money for particular purposes (such as repaying its long-term debts) or to show that it is properly using certain revenues (such as capital projects).


8

The School District has two kinds of funds: • Governmental Fund - All of the School District’s basic services are included in

governmental funds, which generally focus on (1) how cash and other financial assets (which can readily be converted to cash) flow in and out and (2) what year-end balances are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the School District’s programs. Because this information does not encompass the additional long-term focus of the district-wide statements, additional information is included with the governmental funds statements, to explain the relationship (or differences) between them.

• Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to

others, such as the scholarship funds and the student activity funds. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations.


9

Financial Analysis of the District as a Whole Net Assets - The School District’s combined net assets increased $0.2 million to $159.2 million. Figure A-3 provides a summary of the School District’s net assets as of June 30, 2003: Figure A-3

Condensed Statement of Net Assets

June 30

2003 2002 Increase Percent Increase

Governmental Activities (Decrease) (Decrease) (in millions) Assets

Current and other assets $ 1,281.1 $ 797.5 $ 483.6 60.64% Capital assets $ 1,113.3 $ 782.8 $ 330.5 42.22%

Total assets $ 2,394.4 $ 1,580.3 $ 814.1 51.52%

Liabilities Current liabilities $ 473.1 $ 356.7 $ 116.4 32.63% Long-term liabilities $ 1,762.1 $ 1,064.6 $ 697.5 65.52%

Total liabilities $ 2,235.2 $ 1,421.3 $ 813.9 57.26%

Net Assets Invested in capital assets - Net of related debt $ 192.2 $ 152.1 $ 40.1 26.36% Restricted net assets $ 28.5 $ 32.0 $ (3.5) (10.94)% Unrestricted net deficit $ (61.5) $ (25.1) $ (36.4) 145.02%

Total net assets $ 159.2 $ 159.0 $ 0.2 0.13% The above analysis focuses on the net assets. The change in net assets of the School District’s governmental activities is discussed below. The School District’s net assets were $159.2 million on June 30, 2003. Capital assets, net of related debt totaling $192.2 million, compares the original cost, less depreciation of the School District’s capital assets to the long-term debt used to finance the acquisition of those assets. Most of the debt will be repaid from voter-approved property taxes collected as the debt service comes due. Restricted net assets totaling $28.5 million are reported separately to show legal constraints from debt covenants and enabling legislation that limit the School District’s ability to use those net assets for day-to-day operations. The remaining amount of net deficit ($61.5 million) was unrestricted. The unrestricted net deficit of governmental activities represents the accumulated results of all past years’ operations. The operating results of the General Fund will have a significant impact on the change in unrestricted net deficit from year to year.


10

The results of this year’s operations for the School District as a whole are reported in the statement of activities (see Figure A-4), which shows the changes in net assets for fiscal year 2003. Figure A-4

Changes in Net Assets from Operating Results

June 30

2003 2002 Increase Percent Increase

Governmental Activities (Decrease) (Decrease)

(in millions)

Revenues Program revenue:

Charges for services $ 9.2 $ 6.2 $ 3.0 48.39%

Operating grants and contributions $ 502.0 $ 537.7 $ (35.7) (6.64)%

General revenue:

Property taxes $ 175.8 $ 141.3 $ 34.5 24.42%

Unrestricted federal and State aid $ 992.6 $ 961.3 $ 31.3 3.26%

Interest and investment earnings $ 9.7 $ 14.2 $ (4.5) (31.69)%

Other $ (0.5) $ 4.0 $ (4.5) (112.50)%

Total revenues $ 1,688.8 $ 1,664.7 $ 24.1 1.45%

Expenses

Instruction $ 913.3 $ 873.0 $ 40.3 4.62%

Support services $ 667.7 $ 635.8 $ 31.9 5.02%

Community services $ 5.9 $ 5.2 $ 0.7 13.46%

Food services $ 46.9 $ 44.4 $ 2.5 5.63%

Athletics $ 1.7 $ 2.2 $ (0.5) (22.73)%

Other $ 2.4 $ - $ 2.4 -%

Interest on long-term debt $ 54.9 $ 37.1 $ 17.8 47.98%

Unallocated depreciation $ 3.1 $ 8.7 $ (5.6) (64.37)%

Total expenses $ 1,695.9 $ 1,606.4 $ 89.5 5.57%

Excess (Deficiency) of Revenues Over Expenses - Before special item $ (7.1) $ 58.3 $ (65.4) (112.18)%

Special Item - Gain on sale of assets $ 7.3 $ - $ 7.3 -%

Increase (Decrease) in Net Assets $ 0.2 $ 58.3 $ (58.1) (99.66)%

Net Assets - Beginning of year $ 159.0 $ 100.7 $ 58.3 57.89%

Net Assets - End of year $ 159.2 $ 159.0 $ 0.2 0.13%


11

Major Revenue Changes

$992.6

$499.0

$175.8

$961.3

$537.7

$141.3

$- $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0

Unrestricted federal and State aid

Operating grants and contributions

Property taxes

Millions of Dollars

FY 2003 FY 2002


12

Major Expenditure Changes

$913.3

$667.7

$54.9

$46.9

$873.0

$635.8

$37.1

$44.4

$- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0

Instruction

Support services

Interest on long-term debt

Food services

Millions of Dollars

FY 2003 FY 2002

Change in Net Assets As reported in the statement of activities, the cost of all of our governmental activities this year was $1.696 billion. Certain activities were partially funded from those who benefited from the programs ($9.2 million) or by the other governments and organizations that subsidized certain programs with grants and contributions ($502.0 million). The School District paid for the remaining “public benefit” portion of our governmental activities with $175.8 million in taxes, $992.6 million in unrestricted federal and State aid, and $9.2 million with other revenues, i.e., interest and general entitlements.


13

The School District experienced an increase in net assets of $0.2 million. To prevent a decline in net assets, the School District dealt with: • Declining enrollment causing a $9 million shortfall in projected revenue

• An end of the fiscal year unanticipated reduction in the State Foundation funding, resulting in a decrease of $11.1 million

• The City of Detroit collections for property taxes were also down significantly by $16.6 million from the revised budget that was based on the City of Detroit’s mid-year projections

• Federal funding continued the trend with federal sources of revenue less by $31.8 million than revised budget

To cope with these unanticipated revenue reductions, the School District made mid-year expenditure budget reductions. This, coupled with the sale of several assets, allowed the School District to increase its net assets by $0.2 million.

Figure A-5 presents the cost of four major School District activities - instruction, support services, community services, and food services - in addition to the cost of other activities for the fiscal year ended June 30, 2003. The table also shows each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden placed on the School District’s taxpayers by each of these functions. Since property taxes for operations and unrestricted State aid constitute the vast majority of School District operating revenue sources, the Board of Education and administration must annually evaluate the needs of the School District and balance those needs with State-prescribed available unrestricted resources. Figure A-5

Net Cost of Governmental Activities (in millions of dollars) June 30 2003 2002 2003 2002 Total Cost of Services Net Cost of Services (in millions) (in millions) Expenses

Instruction $ 913.3 $ 873.0 $ (603.0) $ (528.8) Support services 667.7 635.8 (520.6) (492.8) Community services 5.9 5.2 (0.6) (0.3) Food services 46.9 44.4 1.6 -

Total expenses $ 1,633.8 $ 1,558.4 $ (1,122.6) $ (1,021.9)


14

• The total cost of the four major governmental activities this year was $1.634 billion.

• Some of the cost was financed by users of the School District’s programs ($9.2 million).

• The federal and state governments subsidized certain programs with grants and contributions ($502.0 million).

• Most of the School District’s net costs ($1,122.6 billion) for the four major governmental activities, however, were financed by district and state taxpayers.

Financial Analysis of the School District’s Funds As we noted earlier, the School District uses funds to help it control and manage money for particular purposes. Reviewing the funds helps the reader consider whether the School District is being accountable for the resources taxpayers and others provide to it, and may provide more insight into the School District’s overall financial health. As the School District completed this year, the governmental funds reported a combined fund balance of $795.9 million, which is an increase of $374.6 million from last year. An analysis of the general fund balance is presented below: General Fund In the General Fund, our principal operating fund, the fund balance decreased by $28.9 million primarily due to the unanticipated reduction in forecasted revenues as described above in the changes in net assets section.


15

2003 2002 2001 2000

Reservations of Fund BalanceInventory 4,380,166$ 4,873,616$ 6,112,841$ 7,420,985$ Encumbrances and purchasing cards 21,449,883 6,332,407 16,570,139 10,684,801 Workers' compensation - - 9,600,000 24,550,000 Reserved for wage arbitration - - - 1,587,117 Litigation - - - 29,805,000

Designations of Fund BalanceDesignated for subsequent

year's expenditures - - 13,835,002 - Workers' compensation 20,000,000 30,000,000 - -

Subtotal - Reservationsand designations againstfund balance 45,830,049 41,206,023 46,117,982 74,047,903

Undesignated Fund Balance 28,819,960 62,396,978 44,276,882 30,280,114

Total fund balances 74,650,009$ 103,603,001$ 90,394,864$ 104,328,017$

Change (28,952,992)$ 13,208,137$ (13,933,153)$ - $

Total expenditures 1,571,418,363$ 1,527,581,183$ 1,491,006,820$ 1,478,743,301$

Total fund balance aspercent of expenditures 4.75% 6.78% 6.06% 7.06%

Undesignated Fund Balance as

Percent of Expenditures 1.83% 4.08% 2.97% 2.05%

History of General Fund Balance Since Implementation of Reform Legislation


16

The General Fund fund balance has been reserved to fund known commitments of the School District that have not been expended as of June 30, 2003. As of June 30, 2003, the School District’s General Fund fund balance was reserved as follows:

• Inventories - $4.3 million

• Encumbrances - $20.3 million and $1.2 million for purchasing card carryover

• In addition, $20.0 million of the General Fund fund balance has been designated for insurance and workers’ compensation claims to be paid in subsequent periods.

Special Revenue Funds The School District maintains two Special Revenue Funds - the Athletics Fund and the Food Services Fund. At this time, no fund balances are maintained in these funds.

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

Millions of Dollars

History of Fund Balance Since Reform Legislation

Encumbrances Inventory Wage arbitration Litigation Designated for subsequent year's expenditures Insurance reserve Undesignated

2003 2002 2001 2000

$74.7

$103.6

$90.4

$104.3

Year


17

Debt Service Funds The combined Debt Service Funds reflected a fund balance decrease of $3.5 million. Millage rates were increased from 8.37 mills to 12.99 mills in order to meet current obligations. Millage rates are determined annually to ensure that the School District accumulates sufficient resources to pay annual bond issue-related debt service. Debt Service Funds fund balances can only be used to pay debt service obligations. Capital Projects Funds The combined Capital Projects Funds fund balance increased significantly by $407.1 million as a result of the School District receiving $755.9 million in capital bond proceeds and premiums. The School District spent $340.1 million in capital outlay expenditures from the Capital Projects Funds in 2003. Construction projects continue to be in progress throughout the School District. General Fund Budgetary Highlights Over the course of the year, the School District revises its budget as it attempts to deal with changes in revenues and expenditures. State law requires that the budget be amended to ensure that expenditures do not exceed appropriations. A schedule showing the School District’s original and final budget amounts compared with amounts actually paid and received is provided in required supplemental information of these financial statements. • Property tax revenues were significantly below revised budget estimates ($16.6 million), due

to the exceptionally poor collection rate within the City of Detroit. The budget was revised upward after favorable projections mid-year by the City of Detroit. Difficulties in assessing the impact of the previous year tax amnesty program and the impact this program might have had on subsequent tax year collections also played a factor in the poor results.

• Declining enrollment and a mid-year reduction in the State Foundation Act payment combined to reduce State Aid Foundation funds by $20.1 from the projected budget.

• A reduction in the count in the number of free and reduced lunch students and a change in the methodology for dispensing federal funds resulted in a reduction of federal funds from the revised budget of $31.8 million.

• In total, there were no by function or by object over expenditures of revised budget except

for compensatory education, which overexpended as a function by $0.7 million, miscellaneous expenditures, which overexpended by $0.8 million, and the combined object range, which represented services which were overexpended by $4.5 million. All over-expenditures were covered by underexpenditures in all other areas.


18

Major Expenditures by Function

Instruction $895,201,695 57%

Pupil support instructional staff services $139,976,172

9%

School admin $135,493,846 9%

General admin $13,466,884 1%

Business office $42,785,070 3%

Operations and maintenance $201,485,857 13%

Debt $3,835,141

Transportation $48,500,714 3%

Other $84,805,787 5% Community services,

$5,867,197

School and instructional expenditures

75%

Major Expenditures by Object

Supplies $64,090,854 4% Other $32,121,607 2%

Capital $17,764,439 1%

Services $176,292,866 11%

Benefits $332,044,453 21% Salaries $949,104,144 61%

Total compensation

82%


19

Capital Assets and Debt Administration Capital Assets As of June 30, 2003, the School District had $1.113 billion invested in a broad range of capital assets, including land, buildings, equipment, vehicles, and construction in progress. This amount represents a net increase (including additions, deductions, and depreciation) of approximately $330.3 million, or 42.2 percent, from last year. The major changes in net assets are a result of the construction projects funded by the $1.5 billion bond authorization. This year’s additions included 10 new buildings.

Percent

Increase Increase2003 2002 (Decrease) (Decrease)

Land 16.0$ 14.1$ 1.9$ 13.5%Land improvements 25.9$ 10.3$ 15.6$ 151.5%Buildings 735.8$ 579.4$ 156.4$ 27.0%Machinery and equipment 53.6$ 38.4$ 15.1$ 39.3%Licensed vehicles 41.9$ 44.3$ (2.3)$ (5.2)%Construction in progress 621.3$ 466.2$ 155.1$ 33.3%

Total capital assets 1,494.5$ 1,152.7$ 341.8$ 29.7%

Less accumulated depreciation 381.4$ 369.9$ 11.5$ 3.1%

Total 1,113.1$ 782.8$ 330.3$ 42.2%

(in millions)

Capital Assets (net of depreciation)

Refer to Note 5 of the notes to the financial statements for more detailed information regarding capital assets. Debt At the end of this year, the School District had $1.548 billion in bonds outstanding, plus $51.1 million in unamortized bond premium, for a total of $1.599 billion. This amount represents an increase of 76.3 percent over the previous year, and is due primarily to the sale of Series IV bonds for $389 million in October 2002, and the sale of Series V bonds for $327 million in April 2003.


20

Percent

Increase Increase2003 2002 (Decrease) (Decrease)

General obligation bonds 1,539.5$ 862.6$ 676.9$ 78.5%Unamortized bond premium 51.1$ 32.6$ 18.5$ 56.8%Other bonds 8.3$ 11.6$ (3.3)$ (28.5)%

Total outstanding debt 1,598.9$ 906.8$ 692.1$ 76.3%

Outstanding Debt

(in millions)

The School District’s general obligation bond rating continues to be equivalent to the State’s credit rating. The State limits the amount of general obligation debt that schools can issue to 15 percent of the assessed value of all taxable property within the School District’s boundaries. If the School District issues qualified debt, i.e., debt backed by the State of Michigan, such obligations are not subject to this debt limit. The School District’s only bonded indebtedness subject to the bonded debt limit is its Energy Conservation Bonds, Series 1999, in the outstanding principal amount of $8.3 million, which is significantly below the statutorily imposed limit. Other obligations include early retirement incentives, retirement benefits, legal obligations, and workers’ compensation. We present more detailed information about our long-term liabilities in the notes to the financial statements. Economic Factors and Next Year’s Budgets and Rates Our elected officials and administration consider many factors when setting the School District’s 2003 fiscal year budget. One of the most important factors affecting the budget is our student count. The State foundation revenue is determined by multiplying the blended student count by the foundation allowance per pupil. The blended count for the 2003 fiscal year is 20 percent of the February 2002 student count and 80 percent of the September 2002 student count. The 2003 fiscal year budget was adopted July 1, 2002, based on an estimate of students that were to be enrolled in September 2002. The largest share, or 70.65 percent, of total General Fund revenue is from the State portion of the foundation allowance and 4.87 percent is from property taxes, with the bulk of the balance (24.48 percent) coming from grants from State, federal, and private sources. Under State law, the School District cannot assess additional property tax revenue for general operations. As a result, School District funding is heavily dependent on the State’s ability to fund local school operations.


21

The School District implemented an aggressive marketing campaign to attract elementary and pre-kindergarten students for the 2001-2002 school year. The marketing campaign was successful and resulted in an increase in pre-kindergarten enrollment from approximately 4,500 in the 2000-2001 school year to approximately 7,000 in the 2001-2002 school year. Results of the student count for the 2002-2003 school year indicate that the School District was able to retain many of these students as they moved into kindergarten, thereby reducing the rate of decline of student enrollment. In July 2002, the School District settled its labor contract negotiations with the Detroit Federation of Teachers Union (DFT). The budget adopted for the 2002-2003 school year and the expenditure levels reflect the increased costs of this contract settlement.


The Notes to the Basic Financial Statements are an Integral Part of this Statement.

22

Statement of Net Assets June 30, 2003

Governmental Activities

AssetsCash and cash equivalents (Note 3) 1,253,734$ Investments (Note 3) 145,955,566 Restricted assets (Note 8) 762,376,106 Receivables (Note 4):

Taxes - Net of allowance of $3,424,000 79,229,747 Due from other governmental units 274,672,659 Other 13,157,624

Inventory 4,380,166 Other 76,415

Capital assets (Note 5) 1,494,642,275 Less accumulated depreciation (Note 5) (381,356,171)

Net capital assets 1,113,286,104

Total assets 2,394,388,121

LiabilitiesAccounts payable 124,660,306 Accrued salaries and benefits 60,375,503 Compensated absences (Note 9) 2,325,877 Deferred revenue - Unexpended restricted funds (Note 4) 9,477,468 Due to student groups and other 147,879 Interest payable 15,879,645 Other 3,729,880 State Aid Anticipation and other notes payable (Note 11) 210,391,406 Current portion:

Bonds payable (Note 7) 40,295,000 Unamortized bond premium 5,440,823 Capital leases (Note 7) 300,201

Long-term liabilities:Compensated absences (Note 7) 151,403,607 Workers' compensation and health insurance claims (Note 9) 39,262,829 Bonds payable (Note 7) 1,507,522,643 Unamortized bond premium 45,705,626 Capital leases (Note 7) 1,229,351 Legal reserve (Note 9) 17,005,993

Total liabilities 2,235,154,037

Net AssetsInvested in capital assets - Net of related debt 192,179,669 Restricted net assets - Debt service 28,544,508 Unrestricted net deficit (61,490,093)

Total net assets 159,234,084$



23

Statement of Activities Year Ended June 30, 2003

Net (Expense)

Revenue and

Changes in NetAssets

Expenses

Charges for

Services

Operating Grants and

Contributions

Governmental

Activities

Primary government - Governmental activities:

Instruction 913,338,397$ 707,441$ 309,671,019$ (602,959,937)$ Support services 667,692,121 406,495 146,685,822 (520,599,804) Community services 5,871,252 396,375 4,901,034 (573,843) Food services 46,935,550 7,684,584 40,815,001 1,564,035 Athletics 1,718,693 - - (1,718,693) Other 2,361,721 - - (2,361,721) Interest on long-term debt 54,913,134 - - (54,913,134) Depreciation (unallocated) 3,163,708 - - (3,163,708)

Total governmental activities 1,695,994,576$ 9,194,895$ 502,072,876$ (1,184,726,805)

General revenue:Taxes:

Property taxes, levied for general purposes 77,463,860 Property taxes, levied for debt services 98,349,902

Federal and State aid not restricted to specific purposes 992,568,740 Interest and investment earnings 9,711,711 Other (460,619)

Subtotal - General revenue 1,177,633,594

Excess (Deficiency) of Revenues OverExpenses Before Special Items (7,093,211)

Special Item - Gain on sale of assets 7,309,133

Changes in Net Assets 215,922

Net Assets - Beginning of year 159,018,162

Net Assets - End of year 159,234,084$

Program Revenue



24

General Fund

1994 Building Site

Improvement

Bonds Series II Fund

1994 Building Site

Improvement

Bonds Series III Fund

1994 Building Site

Improvement

Bonds Series IV

Fund

Assets

Cash and cash equivalents (Note 3) 1,253,734$ - $ - $ - $ Investments (Note 3) 145,955,566 646,509 4,875,145 395,459,096 Receivables (Note 4):

Property taxes:Current 4,746,537 - - - Delinquent - Net of allowance for uncollectible taxes of $3,424,000 38,743,812 - - -

Due from other governmental units 268,186,803 - - - Other 10,552,879 - 9,002 1,262,063

Due from other funds (Note 6) 6,479,917 24,441,869 91,909,250 82,588 Inventory 4,380,166 - - - Other 76,415 - - -

Total assets 480,375,829$ 25,088,378$ 96,793,397$ 396,803,747$

Liabilities and Fund Balances

LiabilitiesAccounts payable 57,042,764$ 2,533,220$ 16,858,245$ 42,600,868$ Accrued salaries and benefits 60,375,503 - - - Compensated absences (Note 7) 2,325,877 - - - Deferred revenue:

Unexpended restricted funds (Note 4) 12,524,813 - - - Delinquent property taxes 38,743,812 - - -

Due to student groups and other 147,879 - - - Due to other funds (Note 6) 17,928,827 66,841 27,389,853 99,690,305 Notes payable (Note 11) 210,391,406 - - - Interest payable (Note 11) 2,515,333 - - - Other 3,729,606 - - -

Total liabilities 405,725,820 2,600,061 44,248,098 142,291,173

Fund BalancesReserved for:

Inventories 4,380,166 - - - Encumbrances 20,301,843 22,488,317 52,545,299 254,512,574 Purchasing cards 1,148,040 - - -

Unreserved:Designated for debt service - - - - Designated for workers' compensation 20,000,000 - - - Undesignated 28,819,960 - - -

Total fund balances 74,650,009 22,488,317 52,545,299 254,512,574

Total liabilities and fund balances 480,375,829$ 25,088,378$ 96,793,397$ 396,803,747$

25

Governmental Funds Balance Sheet June 30, 2003

1994 Building Site

Improvement

Bonds Series V Fund

Other Nonmajor

Governmental Funds Total

- $ - $ 1,253,734$ 337,750,881 23,644,475 908,331,672

- 5,998,228 10,744,765

- 29,741,170 68,484,982 - 6,485,856 274,672,659

318,953 1,014,727 13,157,624 - 29,670,229 152,583,853 - - 4,380,166 - - 76,415

338,069,834$ 96,554,685$ 1,433,685,870$

2,078,545$ 3,546,664$ 124,660,306$ - - 60,375,503 - - 2,325,877

- - 12,524,813 - 29,741,170 68,484,982 - - 147,879

868,915 6,639,112 152,583,853 - - 210,391,406 - - 2,515,333 - 274 3,729,880

2,947,460 39,927,220 637,739,832

- - 4,380,166 335,122,374 28,082,957 713,053,364

- - 1,148,040

- 28,544,508 28,544,508 - - 20,000,000 - - 28,819,960

335,122,374 56,627,465 795,946,038

338,069,834$ 96,554,685$ 1,433,685,870$



26

Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Assets Year Ended June 30, 2003

Fund Balance - Total Governmental Funds 795,946,038$

Amounts reported for governmental activities in the statementof net assets are different because:

Capital assets used in governmental activities are notfinancial and are not reported as assets in the funds:

The cost of capital assets is 1,494,642,275 Accumulated depreciation is (381,356,171)

Total 1,113,286,104

Other long-term assets not available to pay current periodexpenditures therefore deferred in the governmental funds 71,532,327

Long-term liabilities are not due and payable in the currentperiod and are not reported in the governmental funds:

Compensated absences (151,403,607) Workers' compensation and health insurance (39,262,829) Bonds payable (1,547,817,643) Unamortized bond premium (51,146,449) Capital leases (1,529,552) Legal (17,005,993)

Accrued interest payable is not included as a liability in governmental funds (13,364,312)

Net Assets - Governmental Activities 159,234,084$



27

General Fund

1994 Building

Site

Improvement

Bonds Series II

Fund

1994 Building Site

Improvement

Bonds Series III

Fund

1994 Building Site

Improvement

Bonds Series IV

Fund

RevenueLocal sources 135,938,289$ 127,246$ 2,638,309$ 3,456,069$ State sources 1,191,449,831 - - - Federal sources 206,786,862 - - -

Total revenue 1,534,174,982 127,246 2,638,309 3,456,069

ExpendituresCurrent:

Instruction 891,894,493 - - - Support services 651,198,490 - - - Community services 5,790,337 - - - Food services - - - - Athletics - - - -

Debt service:Principal retirement 3,280,000 - - - Payment of interest 555,141 - - -

Capital outlay:Capitalized 11,783,841 28,847,678 153,802,428 146,909,983 Not capitalized 5,980,598 - - -

Other 935,463 - - -

Total expenditures 1,571,418,363 28,847,678 153,802,428 146,909,983

Excess of Expenditures Over Revenue (37,243,381) (28,720,432) (151,164,119) (143,453,914)

Other Financing Sources (Uses)Proceeds from sale of capital assets 9,071,440 - - - Transfers in 59,376,611 - - - Transfers out (60,157,662) - - - Transfers in to close deficit funding bond fund - - - - Transfers out to close deficit funding bond fund - - - - Transfer to bond escrow agent - - - - Sale of bonds - face amount - - - 388,995,000 Premium from sale of bonds - - - 10,820,681

Total other financing sources (uses) 8,290,389 - - 399,815,681

Net Change in Fund Balances (28,952,992) (28,720,432) (151,164,119) 256,361,767

Fund Balances (Deficit) - Beginning of year 103,603,001 51,208,749 203,709,418 (1,849,193)

Fund Balances - End of year 74,650,009$ 22,488,317$ 52,545,299$ 254,512,574$

28

Governmental Funds Statement of Revenue, Expenditures, and

Changes in Fund Balances (Deficit) Year Ended June 30, 2003

1994 Building Site

Improvement

Bonds Series V

Fund

Other Nonmajor

Governmental

Funds Total

670,435$ 98,879,724$ 241,710,072$ - 2,802,238 1,194,252,069 - 36,938,275 243,725,137

670,435 138,620,237 1,679,687,278

- - 891,894,493 - - 651,198,490 - - 5,790,337 - 46,560,407 46,560,407 - 1,716,264 1,716,264

- 38,925,000 42,205,000 - 54,200,461 54,755,602

5,541,831 3,604,273 350,490,034 - 1,398,269 7,378,867 - 1,031,546 1,967,009

5,541,831 147,436,220 2,053,956,503

(4,871,396) (8,815,983) (374,269,225)

- - 9,071,440 - 1,716,264 61,092,875 - (935,213) (61,092,875) - 4,302,688 4,302,688 - (4,302,688) (4,302,688) - (16,043,748) (16,043,748)

326,845,000 16,060,000 731,900,000 13,148,770 - 23,969,451

339,993,770 797,303 748,897,143

335,122,374 (8,018,680) 374,627,918

- 64,646,145 421,318,120

335,122,374$ 56,627,465$ 795,946,038$



29

Governmental Funds Reconciliation of the Statement of Revenue, Expenditures,

and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Year Ended June 30, 2003

Net Change in Fund Balances - Total Governmental Funds 374,627,918$

Amounts reported for governmental activities in the statement of activitiesare different because:

Governmental funds report capital outlays as expenditures; inthe statement of activities, these costs are allocated overtheir estimated useful lives as depreciation:

Depreciation expense (18,224,834)Capital outlays 350,490,034

Total 332,265,200

Long-term debt issuance, including a premium on the debt issuance, isreported as an other financing source in the governmental funds.Long-term debt is not a revenue in the statement of activities andis reported as a long-term liability in the statement of net assets (755,869,451)

Accrued interest is recorded in the statement of activities whenincurred; it is not reported in governmental funds until paid (5,598,355)

Repayment of bond principal is an expenditure in the governmentalfunds, but not in the statement of activities (where it reduceslong-term debt) 42,205,000

Defeasance of bond principal is an expenditure in the governmentalfunds, but not in the statement of activities (where it reduceslong-term debt) 16,060,000

Payments of capital leases are expenditures in the governmental funds,but not in the statement of activities (where it reduces long-term debt) 280,241

Bond premium is amortized in the statement of activities over thespecified amortization period; it is reported in governmental fundswhen received 5,440,823

In the statement of activities, only the gain on the sale of fixed assetsis reported, whereas in the governmental funds, the entire proceedsfrom the sale increase financial resources. Thus, the change in netassets differs from the change in fund balances by the net value of the assets sold (1,762,307)

Changes in compensated absences are reported as expenditureswhen financial resources are used in the governmental funds (10,937,564)



30

Governmental Funds Reconciliation of the Statement of Revenue, Expenditures,

and Changes in Fund Balances of Governmental Funds to the Statement of Activities (Continued)


Because some operating grant monies will not be collected for severalmonths after the School District's year end, they are not consideredas "available" revenue in the governmental funds, and are insteadcounted as deferred revenue. They are, however, recorded asrevenue in the statement of activities:

Deferred amounts as of end of year 3,047,345$ Deferred amounts as of beginning of year (4,799,547)

Total (1,752,202)

Increase in taxes receivable. The monies will not be collected forseveral months after the School District's year end, so they are notconsidered as "available" revenue in the governmental funds, and areinstead counted as deferred revenue 10,966,289

Legal obligations are recorded in the statement of activities whenaccrued; they are not reported in governmental funds until paid (54,678)

Workers' compensation and health insurance are recorded in thestatement of activities when incurred; they are not reported ingovernmental funds until paid (5,654,992)

Change in Net Assets of Governmental Activities 215,922$



31

Fiduciary Funds Statement of Fiduciary Net Assets

June 30, 2003

Agency Fund

Private-Purpose

Trust

StudentActivities Scholarships Total

AssetsCash 4,328,116$ - $ 4,328,116$ Investments - 516,600 516,600 Due from other funds - 147,879 147,879

Total assets 4,328,116$ 664,479$ 4,992,595$

Liabilities and Net Assets

Liabilities - Due to student groups and other 4,328,116$ - $ 4,328,116$

Net Assets - Reserved for scholarships - 664,479 664,479

Total liabilities and net assets 4,328,116$ 664,479$ 4,992,595$



32

Fiduciary Fund Statement of Changes in Fiduciary Net Assets


Scholarships

AdditionsPrivate donations 285,868$ Interest 5,772

Total additions 291,640

DeductionsScholarships awarded 132,205 Other 121

Total deductions 132,326

Change in Net Assets 159,314

Net Assets - Beginning of year 505,165

Net Assets - End of year 664,479$

Detroit Public Schools Notes to Financial Statements

June 30, 2003

33

Note 1 - Summary of Significant Accounting Policies

The accounting policies of the Detroit Public Schools (the “School District”) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The following is a summary of the significant accounting policies used by the School District:

Reporting Entity

Pursuant to amendments to Act 451, effective March 26, 1999, (the “Reform Legislation”), the mayor of the City of Detroit, Michigan appoints six members of the school reform board for the School District. The Reform Board consists of the six members appointed by the mayor and, for a period of five years after the effective date of the Reform Legislation, the superintendent of the public instruction of the State (or the superintendent’s designee). The Reform Board replaced the School District’s 11-member elected Board of Education.

In July 2000, pursuant to the Reform Legislation, the Reform Board appointed Kenneth Stephen Burnley, Ph.D. as chief executive officer of the School District, succeeding an interim chief executive officer. The chief executive officer may exercise all the powers and actions otherwise vested in law in the elected Board of Education of the School District and its secretary and treasurer and all additional powers and duties provided under the Reform Legislation. Those powers and duties include authority over the expenditures of all School District funds, including proceeds from bonded indebtedness; rights and obligations under collective bargaining agreements, and employment contracts entered into by the elected Board of Education, except for any employee whose position is not covered by a collective bargaining agreement or who is employed at the will of the chief executive officer; and to prosecute and defend litigation, obligations under any judgment entered against the elected Board of Education, and rights and obligations under statute, rule, and common law. The accompanying financial statements have been prepared in accordance with criteria established by the Governmental Accounting Standards Board for determining the various governmental organizations to be included in the reporting entity. These criteria include significant operational financial relationships that determine which of the governmental organizations are a part of the School District’s reporting entity, and which organizations are legally separate, component units of the School District. Based on the application of the criteria, the School District does not contain any component units.


June 30, 2003

34

Note 1 - Summary of Significant Accounting Policies (Continued)

District-wide and Fund Financial Statements

The district-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. All of the School District’s district-wide activities are considered governmental activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenue includes (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes, intergovernmental payments, and other items not properly included among program revenues are reported instead as general revenue.

Separate financial statements are provided for governmental funds and fiduciary funds even though the latter are excluded from the district-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

District-wide Financial Statements - The district-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants, categorical aid, and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

As a general rule, the effect of interfund activity has been eliminated from the district-wide financial statements.

Amounts reported as program revenue include (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions. Internally dedicated resources are reported as general revenue rather than as program revenue. Likewise, general revenue includes all taxes and unrestricted State aid.


June 30, 2003

35


Special Items - Transactions within the control of management that are either unusual in nature or infrequent in occurrence are reported as special items in the statement of activities. During the year, the School District sold the School Center Building. This has been reported as a special item.

Fund Financial Statements - Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available if it is collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the School District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, unrestricted State aid, intergovernmental grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenue items are considered to be available only when cash is received by the School District.

Fiduciary fund statements also are reported using the accrual basis of accounting. The School District maintains a Student Activities Fund to record funds received and expended for student activities. It also maintains a private purpose trust fund, Scholarship Fund, to record private donations and scholarships awarded from these donations. The private purpose trust fund uses the economic resources measurement focus.

The School District reports the following major governmental funds:

General Fund - The General Fund is the School District’s primary operating fund. It accounts for all financial resources of the School District, except those required to be accounted for in another fund. The School District maintains separate subfunds within the General Fund for federal activities, adult education, special education, and risk management.

The 1994 Building Site Improvement Bonds Series II, Series III, Series IV, and Series V Funds - These Capital Projects Funds are used to record bond proceeds or other revenue and the disbursement of invoices specifically designated for acquiring new school sites, buildings, equipment, and for remodeling. The funds operate until the purposes for which they were created are accomplished.


June 30, 2003

36


Additionally, the School District reports the following fund types:

Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expend for specified purposes. The School District’s Special Revenue Funds include the Food Services and Athletics Funds. Any operating deficit generated by these funds is the responsibility of the General Fund.

Debt Service Funds - Debt Service Funds are used to record tax, interest, and other revenue for payment of interest, principal, and other expenditures on long-term debt. The School District’s Debt Service Funds include bond redemption, deficit funding bonds, and judgment levy.

Capital Projects Funds - Capital Projects Funds are used to record bond proceeds or other revenue and the disbursement specifically designated for acquiring new school sites, buildings, equipment, and for remodeling. The fund operates until the purpose for which it was created is accomplished. The School District’s Capital Projects Funds include the 1986 School Building Site Improvement Bonds, the 1994 School Building Site Improvement Bonds Series I, and the Durant Bond.

Assets, Liabilities, and Net Assets or Equity

Deposits and Investments - Cash and cash equivalents include cash on hand, demand deposits, and short-term investments with a maturity of three months or less when acquired. Investments are stated at fair value.

Receivables and Payables - In general, outstanding balances between funds are reported as “due to/from other funds.”

All trade and property tax receivables are shown net of an allowance for uncollectible amounts. Property taxes are assessed as of December 31 and the related property taxes become a lien on December 1 of the following year. These taxes are billed on July 1 for approximately 50 percent of the taxes and on December 1 for the remainder of the property taxes. Taxes are considered delinquent on March 1 of the following year. At this time, penalties and interest are assessed and the total obligation is added to the county tax rolls.

Inventories - Inventories are valued at cost, on a first-in, first-out basis. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. United States Department of Agriculture Commodities inventory received by the Food Services Fund are recorded as inventory and deferred revenue until used.


June 30, 2003

37


Restricted Assets - The unspent bond proceeds of the Capital Projects Funds require amounts to be set aside for construction. In addition, the unspent property taxes levied in the Debt Service Funds are required to be set aside for future bond principal and interest payments. These amounts have been classified as restricted assets.

Capital Assets - Capital assets, which include land, buildings, equipment, and vehicles, are reported in the applicable governmental column in the district-wide financial statements. Capital assets are defined by the School District as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of five years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Costs of normal repair and maintenance that do not add to the value or materially extend asset life are not capitalized. The School District does not have infrastructure-type assets.

Buildings, equipment, and vehicles are depreciated using the straight-line method over the following useful lives:

Buildings and additions 20-50 yearsBuses and other vehicles 5-10 yearsFurniture and other equipment 5-10 years

Compensated Absences - The liability for compensated absences reported in the district-wide statements consist of unpaid, accumulated vacation and sick leave balances. A liability for these amounts is reported in governmental funds as it comes due for payment. The liability has been calculated using the vesting method, in which leave amounts for both employees who are currently eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included.

Long-term Obligations - In the district-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets.

Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and are amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period.


June 30, 2003

38


The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs are reported as debt service expenditures.

Fund Equity - In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.

Comparative Data - Comparative data is not included in the School District’s financial statements.

Note 2 - Stewardship, Compliance, and Accountability

Budgetary Information - Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and State law for the General Fund and all Special Revenue and Debt Service Funds. All annual appropriations lapse at fiscal year end.

The budget document presents information by fund and function. The legal level of budgetary control adopted by the governing body (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. State law requires the School District to have its budget in place by July 1. Expenditures in excess of amounts budgeted are a violation of Michigan law. State law permits districts to amend their budgets during the year.

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the goods or services have not been received as of year end; the commitments will be reappropriated and honored during the subsequent year.

The budget has been prepared in accordance with accounting principles generally accepted in the United States of America, with the following exception:

• Capital outlay has been allocated to the various other functions rather than treated as a separate category.

Capital Projects Fund Compliance - The Capital Projects Funds include capital project activities funded with bonds issued after May 1, 1994. For these capital projects, the School District has complied with the applicable provisions of §1351a of the State of Michigan’s School Code.


June 30, 2003

39

Note 3 - Deposits and Investments

State statutes and the School District’s investment policy authorize the School District to make deposits in the accounts of federally insured banks, credit unions, and savings and loan associations that have offices in Michigan. The School District is allowed to invest in U.S. Treasury or agency obligations, U.S. government repurchase agreements, bankers’ acceptances, commercial paper rated prime at the time of purchase that matures not more than 270 days after the date of purchase, mutual funds, and investment pools that are composed of authorized investment vehicles. The School District’s deposits are in accordance with statutory authority.

At year end, the School District’s deposits and investments were reported in the basic financial statements in the following categories:

Governmental Activities

Fiduciary Funds

Total Primary Government

Cash and cash equivalents 1,253,734$ 4,328,116$ 5,581,850$ Investments 908,331,672 516,600 908,848,272

Total 909,585,406$ 4,844,716$ 914,430,122$

The breakdown between deposits and investments for the School District is as follows:

Deposits (checking and savings accounts and certificatesof deposit) 9,997,180$

Investments in securities, mutual funds, and similar vehicles 904,432,942

Total 914,430,122$

The bank deposits of the School District were reflected in the accounts of the financial institution at $20,948,211, of which $428,192 is covered by federal depository insurance and $20,520,019 was uninsured and uncollateralized.

The School District believes that due to the dollar amounts of cash deposits and the limits of FDIC and/or other insurance, it is impractical to insure all bank deposits. As a result, the School District evaluates each financial institution with which it deposits School District funds and assesses the level of risk of each institution; only those institutions with an acceptable estimated risk level are used as depositories.


June 30, 2003

40

Note 3 - Deposits and Investments (Continued)

Investments are categorized into these three categories of credit risk:

Category 1 - Insured or registered, with securities held by the School District or its agent in the School District’s name;

Category 2 - Uninsured and unregistered, with securities held by the counterparty’s trust department or agent in the School District’s name; and

Category 3 - Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the School District’s name.

At year end, the School District’s investment balances were categorized as follows:

Interest Date of CarryingDescription Rates Maturity Amount Category

General Fund Commercial paper 1.30%-1.35% Various 12,149,560$ 1 Money market Various N/A 130,497,771 1 Repurchase agreement 1.80% 04/20/2004 2,003,642 1 Certificate of deposit 2.90% 12/04/2003 1,304,593 1

Total 145,955,566

Capital Projects Funds Commercial paper 1.30%-1.35% Various 108,071,097 1 Money market Various N/A 557,836,713 1 U.S. government agency 1.32%-1.39% Various 90,305,783 1

Total 756,213,593

Debt Service Fund - Money market Various N/A 6,162,513 1

Fiduciary Funds - Money market Various N/A 516,600 2

Total investment balances 908,848,272$

Total by category:Category 1 908,331,672$ Category 2 516,600


June 30, 2003

41

Note 4 - Receivables

Receivables as of year end for the School District’s individual major funds and the nonmajor and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

General

Fund

1994

Building Site

Improvement

Bonds

Series II

1994

Building Site

Improvement

Bonds

Series III

1994

Building Site

Improvement

Bonds

Series IV

1994

Building Site

Improvement

Bonds

Series V

Nonmajor and

Other Funds Total

Receivables: Taxes - Net 43,490,349$ - $ - $ - $ - $ 35,739,398$ 79,229,747$ Intergovernmental 268,186,803 - - - - 6,485,856 274,672,659 Other 10,552,879 - 9,002 1,262,063 318,953 1,014,727 13,157,624

Net receivables 322,230,031$ - $ 9,002$ 1,262,063$ 318,953$ 43,239,981$ 367,060,030$

Governmental funds report deferred revenue in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. At the end of the current fiscal year, the various components of deferred revenue are as follows:

Unavailable Unearned Total

Delinquent property taxes 68,484,982$ - $ 68,484,982$ Grant and categorical aid payment

received prior to meeting alleligibility requirements 3,047,345 9,477,468 12,524,813

Total 71,532,327$ 9,477,468$ 81,009,795$


June 30, 2003

42

Note 5 - Capital Assets

Capital asset activity of the School District’s governmental activities was as follows:

Balance

July 1, 2002 Reclassifications Additions

Disposals and

Adjustments

Balance

June 30, 2003

Assets not being depreciated: Land 14,074,041$ 2,041,556$ - $ (85,875)$ 16,029,722$ Construction in progress 466,202,955 (187,712,805) 342,840,865 - 621,331,015

Capital assets being depreciated:Building and building improvements 579,376,196 156,509,841 5,220,808 (5,276,978) 735,829,867 Land improvements 10,284,178 15,652,966 18,220 (22,831) 25,932,533 Buses and other vehicles 44,281,359 - - (2,396,020) 41,885,339 Machinery and equipment 38,434,201 13,508,442 2,410,141 (718,985) 53,633,799

Total capital assets being depreciated 672,375,934 185,671,249 7,649,169 (8,414,814) 857,281,538

Accumulated depreciation: Building and building improvements 319,552,582 - 9,551,577 (3,819,795) 325,284,364 Land improvements 8,521,800 - 546,285 (17,500) 9,050,585 Buses and other vehicles 23,124,899 - 3,598,764 (2,614,746) 24,108,917 Machinery and equipment 18,670,438 - 4,528,208 (286,341) 22,912,305

Subtotal 369,869,719 - 18,224,834 (6,738,382) 381,356,171

Net capital assets being depreciated 302,506,215 185,671,249 (10,575,665) (1,676,432) 475,925,367

Net capital assets 782,783,211$ - $ 332,265,200$ (1,762,307)$ 1,113,286,104$

Depreciation expense was charged to activities of the School District as follows:

Governmental activities: Instruction 9,455,721$ Support services 5,440,824 Community services 3,390 Food services 161,191 Unallocated 3,163,708

Total governmental activities 18,224,834$

Note: Depreciation expense was not charged to activities where the School District

considers its assets to impact multiple activities and allocation is not practical.


June 30, 2003

43

Note 5 - Capital Assets (Continued)

Construction Commitments - The School District has active construction projects at year end. At year end, the School District’s commitments with contractors are as follows in the listed bond issues:

Spent to DateRemaining

Commitment

Series I 1996A 101,678,752$ 8,892,073$ Series II 1998 214,586,307 22,014,532 Series III 2001A 429,007,813 49,489,631 Series IV 2002A 148,759,176 253,992,941 Series V 2003B 5,541,833 339,049,032

Total 899,573,881$ 673,438,209$

Note 6 - Interfund Receivables, Payables, and Transfers

The composition of interfund balances is as follows:

Fund Due From

Fund Due To

General

Fund

1994 Building

Site

Improvement

Bonds

Series II

Fund

1994 Building

Site

Improvement

Bonds

Series III

Fund

1994 Building

Site

Improvement

Bonds

Series IV

Fund

1994 Building

Site

Improvement

Bonds

Series V

Fund

Other Nonmajor

Governmental

Funds Total

General Fund - $ 66,841$ 808,188$ - $ - $ 5,604,888$ 6,479,917$ 1994 Building Site Improvement

Bonds Series II Fund - - 15,368,654 8,038,991 - 1,034,224 24,441,869 1994 Building Site Improvement

Bonds Series III Fund - - - 91,122,923 786,327 - 91,909,250 1994 Building Site Improvement

Bonds IV Fund - - - - 82,588 - 82,588 1994 Building Site Improvement

Bonds Series V Fund - - - - - - - Other nonmajor governmental

funds 17,928,827 - 11,213,011 528,391 - - 29,670,229

Total 17,928,827$ 66,841$ 27,389,853$ 99,690,305$ 868,915$ 6,639,112$ 152,583,853$

Interfund receivables and payables occur in the course of ordinary operations and reflect short term transactions between funds, primarily transactions between capital projects and between the General Fund and Special Revenue Funds.


June 30, 2003

44

Note 6 - Interfund Receivables, Payables, and Transfers (Continued)

Interfund Transfers

Transfers Out

General Fund

Other Nonmajor

Governmental Funds Total

Transfers in:General Fund 58,441,398$ 935,213$ 59,376,611$ Other nonmajor

governmental funds 1,716,264 - 1,716,264

Total 60,157,662$ 935,213$ 61,092,875$

Transfers result from two major types of transactions: Transfers between General Fund sub funds and transfers in support of Athletic Fund activities.

Note 7 - Long-term Debt

The School District issues bonds, notes, and other contractual commitments to provide for the acquisition and construction of major capital facilities and the acquisition of certain equipment. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. Other long-term obligations include compensated absences, claims and judgments, termination benefits, and certain risk liabilities.


45

Note 7 - Long-term Debt (Continued)

Long-term obligation activity can be summarized as follows:

EffectiveDate Year of Serial Interest Amount of

Description of Issue Maturity Rates of Debt Original Issue

School Building and Site Improvement Bonds: Series XXI 08/06/87 2007 7.00%-7.25% 26,600,000$ Series XXII 09/29/88 2009 9.350%-9.375% 20,000,000 Series 1992 07/01/92 2012 4.80%-6.25% 33,000,000 Series 1993 10/01/93 2013 4.55%-5.125% 79,730,000 Series 1996A 03/01/96 2025 3.70%-6.50% 89,000,000 Series 1998A 11/01/98 2007 4.00%-4.30% 940,000 Series 1998B 11/01/98 2028 3.50%-3.75% 209,770,000 Series 1998C 11/01/98 2025 3.50%-5.25% 84,855,000 Series 1998 (Durant) 11/24/98 2013 4.76% 59,304,433 Series 2001A 10/30/01 2031 3.00%-6.00% 438,365,000 Series 2002A 10/29/02 2032 3.00%-6.00% 388,995,000 Series 2003A 02/04/03 2013 5.00%-5.25% 16,060,000 Series 2003B 04/28/03 2033 3.00%-6.00% 326,845,000

Total School Building andImprovement Bonds 1,041,564,433

Energy Conservation Bonds 03/10/99 2007 2.90%-4.25% 21,210,000

Total bonds payable 1,062,774,433$

Other liabilities:Compensated absences payableWorkers' compensation and health

insurance claimsCapital leases payableLegal and other

Notes to Financial Statements

June 30, 2003

46

Balance at Balance atJune 30, 2002 Additions Retirements Refunding June 30, 2003 Current

12,050,000$ - $ (2,050,000)$ - $ 10,000,000$ 2,200,000$ 11,825,000 - (1,275,000) - 10,550,000 1,400,000

1,635,000 - (1,635,000) - - - 57,445,000 - (4,655,000) (16,060,000) 36,730,000 4,890,000 19,800,000 - (1,710,000) - 18,090,000 1,805,000

940,000 - (640,000) - 300,000 10,000 202,730,000 - (2,160,000) - 200,570,000 2,790,000

83,960,000 - (300,000) - 83,660,000 2,040,000 37,887,643 - - - 37,887,643 -

434,290,000 - (8,445,000) - 425,845,000 9,160,000 - 388,995,000 (16,055,000) - 372,940,000 7,470,000 - 16,060,000 - - 16,060,000 - - 326,845,000 - - 326,845,000 5,500,000

862,562,643 731,900,000 (38,925,000) (16,060,000) 1,539,477,643 37,265,000

11,620,000 - (3,280,000) - 8,340,000 3,030,000

874,182,643$ 731,900,000$ (42,205,000)$ (16,060,000)$ 1,547,817,643$ 40,295,000$

Balance at Additions Balance atJune 30, 2002 (Retirements) June 30, 2003 Current

143,242,670$ 10,486,814$ 153,729,484$ 2,325,877$

35,098,703 4,164,126 39,262,829 - 1,809,793 (280,241) 1,529,552 300,201

16,951,315 54,678 17,005,993 -


June 30, 2003

47


Annual debt service requirements to maturity for the above governmental bond and note obligations are as follows:

School Building and Site Improvement Bonds Special Purpose Bonds

Principal Interest Total Principal Interest Total

2004 37,265,000$ 82,283,611$ 119,548,611$ 3,030,000$ 304,500$ 3,334,500$ 2005 39,755,000 80,378,692 120,133,692 2,170,000 192,145 2,362,145 2006 45,287,962 78,429,815 123,717,777 1,365,000 117,036 1,482,036 2007 48,141,222 75,995,994 124,137,216 1,425,000 60,104 1,485,104 2008 41,704,442 73,357,294 115,061,736 350,000 7,438 357,438 2009-2013 229,004,017 329,975,960 558,979,977 - - - 2014-2018 189,505,000 270,157,815 459,662,815 - - - 2019-2023 190,840,000 218,116,354 408,956,354 - - - 2024-2028 272,550,000 168,792,700 441,342,700 - - - 2029-2033 445,425,000 49,197,674 494,622,674 - - -

Total 1,539,477,643$ 1,426,685,909$ 2,966,163,552$ 8,340,000$ 681,223$ 9,021,223$

Durant Non-Plaintiff Bond - Included in governmental activities general obligation bonds is the Durant Non-Plaintiff Bond. Annual payments associated with this bond are funded by the State of Michigan via specifically appropriated State aid and will not require any School District debt levy or utilization of any other School District financial resources. During the current year, the payment stream was revised.

Advance Refundings - During the year, the School District issued $16,060,000 in general obligation bonds with an average interest rate of 4.47 percent. The proceeds of these bonds were used to advance refund $16,060,000 of the Series 1993 bonds with an average interest rate of 5.00 percent. The net proceeds of $16,814,820 (after payment of $162,600 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities and were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the original bonds. As a result, the bonds are considered defeased and the liability for the bonds has been removed from the School District’s long-term obligations. The advance refunding reduced total debt service payments by approximately $490,000, which represents an economic gain (present value) of $506,000. Proceeds from bond issuance include $917,419 of bond premium.

In prior years, the School District defeased certain bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust accounts assets and liabilities for the defeased bonds are not included in the basic financial statements. At June 30, 2003, $125,785,000 of bonds outstanding are considered defeased.


June 30, 2003

48


Capital Leases - The School District has entered into lease agreements as lessee for financing the purchase of certain equipment. The lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value are as follows:

2004 402,107$ 2005 402,107 2006 402,107 2007 402,107 2008 201,053

Total minimum lease payments 1,809,481

Less amount representing interest 279,929

Present value of minimum lease payments 1,529,552$

Note 8 - Restricted Assets

The balances of the restricted asset accounts are as follows:

GovernmentalActivities

Unspent bond proceeds and related interest 756,213,593$ Unspent property taxes levied for debt service 6,162,513

Total restricted assets 762,376,106$

Note 9 - Risk Management

The School District is exposed to various risks of loss related to property loss, torts, errors and omissions, and employee injuries (workers’ compensation), as well as medical benefits provided to employees. The School District is uninsured for loss related to property loss, torts, and errors and omissions.


June 30, 2003

49

Note 9 - Risk Management (Continued)

The School District is also self-insured for workers’ compensation and medical benefits. The total estimated liability for these claims that have been incurred through the end of the fiscal year, including both those claims that have been reported as well as those that have not yet been reported, totals $39,262,829. These estimates are recorded in the district-wide statements. Changes in the estimated liability for the past two fiscal years were as follows:

2003 2002

Estimated liability - Beginning of year 35,098,703$ 39,285,809$

Estimated claims incurred, includingchanges in estimates 133,930,951 97,586,729

Claim payments (129,766,825) (101,773,835)

Estimated liability - End of year 39,262,829$ 35,098,703$

Various legal actions, proceedings, and claims are pending or may be asserted in the future against the School District, including those arising out of personal injuries and civil actions. Some of the foregoing matters may involve compensatory and/or punitive damage claims.

Litigation is subject to many uncertainties, the ultimate outcome of which is not predictable; however, the School District’s management believes the resulting liabilities from outstanding legal actions, proceedings, and claims will not have a material adverse effect upon the School District’s financial position or results of operations. At June 30, 2003, the School District has recorded an estimated liability of approximately $17,000,000 for pending litigation as a long-term obligation.

Note 10 - Defined Benefit Pension Plan and Postemployment Benefits

Plan Description - The School District participates in the Michigan Public School Employees’ Retirement System (MPSERS), a statewide, cost-sharing, multiple-employer defined benefit public employee retirement system governed by the State of Michigan that covers substantially all employees of the School District. The MPSERS provides retirement, survivor, and disability benefits to plan members and their beneficiaries. The Michigan Public School Employees’ Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the MPSERS. That report may be obtained by writing to the MPSERS at 7150 Harris Drive, P.O. Box 30673, Lansing, MI 48909-8103.


June 30, 2003

50

Note 10 - Defined Benefit Pension Plan and Postemployment Benefits (Continued)

Funding Policy - Employer contributions to the MPSERS result from the implementing effects of the School Finance Reform Act. Under these procedures, each school district is required to contribute the full actuarial funding contribution amount to fund pension benefits, plus an additional amount to fund retiree health care benefit amounts on a cash disbursement basis.

The pension benefit rate totals 12.17 percent for the period from July 1, 2002 through September 30, 2002 and 12.99 percent for the period from October 1, 2002 through June 30, 2003 of the covered payroll to the plan. Basic plan members make no contributions, but Member Investment Plan members contribute at rates ranging from 3.0 percent to 4.3 percent of gross wages. The School District’s contributions to the MPSERS plan for the years ended June 30, 2003, 2002, and 2001 were $139,287,767, $113,270,430, and $112,686,171, respectively.

Postemployment Benefits - Under the MPSERS Act, all retirees participating in the MPSERS pension plan have the option of continuing health, dental, and vision coverages. Retirees having these coverages contribute an amount equivalent to the monthly cost for Part B Medicare and 10 percent of the monthly premium amount for the health, dental, and vision coverages. Required contributions for postemployment health care benefits are included as part of the School District’s total contribution to the MPSERS plan discussed above.

Note 11 - State Aid Anticipation and Other Notes

During August 2002, Detroit Public Schools borrowed $210,000,000 in a State Aid Anticipation Note. The note bears interest at 1.40 percent and is due August 2003. At June 30, 2003, Detroit Public Schools has accrued interest of $2,515,333 on this note. In addition, the School District has approximately $391,000 of other current notes payable at June 30, 2003.

Subsequent to year end, the School District repaid the $210,000,000 note due August 2003 and borrowed $195,535,000 at 1.02 percent annual interest on a new State Aid Anticipation Note. The note, plus interest, is due in August 2004.



51

Required Supplemental Information Budgetary Comparison Schedule - General Fund


Original Final

VariancePositive

(Negative) toBudget Budget Actual Final Budget

RevenuesLocal sources:

Property taxes 71,500,000$ 91,292,000$ 74,715,066$ (16,576,934)$ Tuition 530,000 280,000 707,441 427,441 Earnings on investments 4,200,000 1,800,000 1,849,862 49,862 Special education millage 47,280,273 47,280,273 55,166,068 7,885,795 Other 9,283,057 9,674,032 3,499,852 (6,174,180)

Total local sources 132,793,330 150,326,305 135,938,289 (14,388,016)

State sources:State aid foundation 1,066,045,166 1,104,050,166 1,083,956,145 (20,094,021) At-risk 89,588,160 81,835,261 79,509,349 (2,325,912) Other 23,657,784 25,334,600 27,984,337 2,649,737

Total state sources 1,179,291,110 1,211,220,027 1,191,449,831 (19,770,196)

Federal sources:Title I 128,597,886 130,316,404 112,355,738 (17,960,666) Other 112,776,936 108,314,008 94,431,124 (13,882,884)

Total federal sources 241,374,822 238,630,412 206,786,862 (31,843,550)

Total revenue 1,553,459,262 1,600,176,744 1,534,174,982 (66,001,762)

ExpendituresInstruction:

K12:Salaries 318,910,356 373,604,339 349,526,691 24,077,648 Benefits 107,233,259 115,353,958 119,863,804 (4,509,846) Purchased services 1,022,237 4,675,930 6,424,516 (1,748,586) Supplies 32,587,744 37,783,773 27,650,827 10,132,946 Capital outlay 132,351 134,051 184,003 (49,952) Other 2,979,650 2,672,357 233,934 2,438,423

Total K-12 462,865,597 534,224,408 503,883,775 30,340,633

Pre-school:Salaries 22,818,293 24,035,993 25,278,389 (1,242,396) Benefits 9,192,043 9,929,687 8,804,100 1,125,587 Purchased services 476,236 826,209 453,818 372,391 Supplies 776,702 2,027,628 2,217,676 (190,048) Capital outlay 32,000 654,139 360,604 293,535 Other 174,684 216,891 207,430 9,461

Total pre-school 33,469,958 37,690,547 37,322,017 368,530

Note - This budget statement is in greater detail than the adopted budget.


52

Required Supplemental Information Budgetary Comparison Schedule - General Fund (Continued)


Original Final

VariancePositive


Expenditures (Continued)Summer school:

Salaries 1,316,291$ 7,137,093$ 2,699,595$ 4,437,498$ Benefits 159,510 1,467,722 553,509 914,213 Purchased services 61,000 661,840 107,866 553,974 Supplies 1,000 2,290,760 - 2,290,760 Capital outlay - 4,800 - 4,800 Other - 3,977,610 - 3,977,610

Total summer school 1,537,801 15,539,825 3,360,970 12,178,855

Special education:Salaries 123,525,350 123,573,863 106,900,145 16,673,718 Benefits 42,448,015 42,273,595 35,936,097 6,337,498 Purchased services 1,687,465 2,754,325 1,607,317 1,147,008 Supplies 2,886,769 4,596,385 1,980,903 2,615,482 Capital outlay 988,758 990,623 1,562,146 (571,523) Other 682,084 112,570 6,669,258 (6,556,688)

Total special education 172,218,441 174,301,361 154,655,866 19,645,495

Compensatory education:Salaries 93,800,912 80,165,324 102,733,460 (22,568,136) Benefits 33,064,831 29,481,202 33,658,857 (4,177,655) Purchased services 4,716,500 15,675,919 5,172,445 10,503,474 Supplies 21,818,485 24,134,935 9,229,436 14,905,499 Capital outlay 943,991 1,412,668 695,137 717,531 Other 444,530 871,266 972,749 (101,483)

Total compensatoryeducation 154,789,249 151,741,314 152,462,084 (720,770)

Vocational education:Salaries 19,576,270 21,778,687 22,368,858 (590,171) Benefits 6,653,378 7,068,980 7,299,244 (230,264) Purchased services 884,082 2,009,169 1,533,424 475,745 Supplies 4,437,800 4,968,559 3,950,160 1,018,399 Capital outlay 1,596,023 1,641,313 505,312 1,136,001 Other 45,505 213,556 167,364 46,192

Total vocationaleducation 33,193,058 37,680,264 35,824,362 1,855,902



53



Original Final

VariancePositive


Expenditures (Continued)Adult education:

Salaries 8,363,082$ 9,743,048$ 5,666,320$ 4,076,728$ Benefits 2,608,996 3,045,786 1,704,990 1,340,796 Purchased services 494,822 693,922 230,780 463,142 Supplies 173,622 605,502 90,138 515,364 Capital outlay 6,000 4,800 - 4,800 Other - - 393 (393)

Total adult education 11,646,522 14,093,058 7,692,621 6,400,437

Total instructional 869,720,626 965,270,777 895,201,695 70,069,082

Support ServicesPupil services:

Salaries 58,240,897 60,810,674 60,362,463 448,211 Benefits 20,141,075 20,467,994 19,858,970 609,024 Purchased services 4,598,920 4,736,853 3,120,445 1,616,408 Supplies 5,232,640 2,036,851 789,739 1,247,112 Capital outlay 91,000 126,434 10,045 116,389 Other 420,531 312,542 669,501 (356,959)

Total pupil services 88,725,063 88,491,348 84,811,163 3,680,185

Instructional staff support:Salaries 19,453,248 31,769,204 25,676,259 6,092,945 Benefits 5,732,342 8,813,721 8,760,896 52,825 Purchased services 10,695,151 9,451,412 7,758,352 1,693,060 Supplies 3,071,140 3,938,648 6,411,925 (2,473,277) Capital outlay 1,181,896 2,961,541 2,690,279 271,262 Other 21,755,904 5,371,813 3,867,298 1,504,515

Total instructional staffsupport 61,889,681 62,306,339 55,165,009 7,141,330

School administration:Salaries 85,931,875 94,750,943 92,782,811 1,968,132 Benefits 29,466,387 30,860,996 30,945,872 (84,876) Purchased services 12,215,561 14,703,722 9,616,098 5,087,624 Supplies 872,811 1,022,153 918,774 103,379 Capital outlay 1,783,958 1,534,011 612,229 921,782 Other 1,200,271 644,629 618,062 26,567

Total school administration 131,470,863 143,516,454 135,493,846 8,022,608 Note - This budget statement is in greater detail than the adopted budget.


54



Original Final

VariancePositive


Support Services (Continued)General administration:

Salaries 6,364,736$ 6,793,861$ 6,261,464$ 532,397$ Benefits 1,886,509 1,783,968 1,805,282 (21,314) Purchased services 7,367,252 4,065,357 3,057,247 1,008,110 Supplies 463,173 409,056 182,433 226,623 Capital outlay 35,000 81,926 5,620 76,306 Other 2,091,212 2,936,041 2,154,838 781,203

Total general administration 18,207,882 16,070,209 13,466,884 2,603,325

Business office:Salaries 12,778,100 14,952,592 14,438,355 514,237 Benefits 4,833,407 16,561,827 4,975,654 11,586,173 Purchased services 8,210,606 20,911,100 17,628,815 3,282,285 Supplies 726,700 599,195 89,245 509,950 Capital outlay 493,000 388,912 222,597 166,315 Other 80,500 1,211,228 5,430,404 (4,219,176)

Total business office 27,122,313 54,624,854 42,785,070 11,839,784

Operations and maintenance:Salaries 76,865,192 99,023,283 96,413,219 2,610,064 Benefits 33,533,446 36,183,535 38,006,509 (1,822,974) Purchased services 20,188,760 22,445,881 55,284,502 (32,838,621) Supplies 42,858,841 44,399,044 6,191,609 38,207,435 Capital outlay 958,574 4,849,487 4,494,843 354,644 Other 1,739,050 2,635,485 1,095,175 1,540,310

Total operations andmaintenance 176,143,863 209,536,715 201,485,857 8,050,858

Transportation:Salaries 15,616,237 20,656,086 20,152,613 503,473 Benefits 3,817,643 8,896,062 9,689,463 (793,401) Purchased services 16,255,700 16,576,182 15,905,599 670,583 Supplies 3,084,100 2,467,380 2,219,873 247,507 Capital outlay 181,500 145,200 58,998 86,202 Other 186,000 151,110 474,168 (323,058)

Total transportation 39,141,180 48,892,020 48,500,714 391,306 Note - This budget statement is in greater detail than the adopted budget.


55



Original Final

VariancePositive


Support Services (Continued)Other support services:

Salaries 12,862,391$ 15,339,159$ 15,159,269$ 179,890$ Benefits 4,309,873 5,074,541 9,386,518 (4,311,977) Purchased services 82,049,081 49,309,581 46,491,884 2,817,697 Supplies 1,915,178 3,298,663 1,975,270 1,323,393 Capital outlay 1,706,008 9,199,631 5,296,368 3,903,263 Other 3,493,943 73,144,166 4,571,617 68,572,549

Total other supportservices 106,336,474 155,365,741 82,880,926 72,484,815

Total support services 649,037,319 778,803,680 664,589,469 114,214,211

Community service:Salaries 4,267,902 4,024,438 2,642,831 1,381,607 Benefits 1,034,750 1,059,835 776,373 283,462 Purchased services 993,379 2,295,551 1,899,758 395,793 Supplies 121,467 141,243 83,232 58,011 Capital outlay 106,063 88,263 76,860 11,403 Other 408,558 372,999 388,143 (15,144)

Total community service 6,932,119 7,982,329 5,867,197 2,115,132

Miscellaneous:Salaries 93,133 93,134 41,402 51,732 Benefits 47,929 47,929 18,315 29,614 Purchased services - - - - Supplies 109,614 109,614 109,614 - Capital outlay 875,986 875,986 989,398 (113,412) Other 41,170 32,936 766,132 (733,196)

Total miscellaneous 1,167,832 1,159,599 1,924,861 (765,262)

Principal retirement - 3,280,000 3,280,000 - Payment of interest 3,360,000 3,792,875 555,141 3,237,734

Total expenditures 1,530,217,896 1,760,289,260 1,571,418,363 188,870,897

Other Financing Sources (Uses)Transfers in 72,817,913 69,325,913 59,376,611 (9,949,302) Transfers out (105,059,279) (20,252,031) (60,157,662) (39,905,631)

Total other financingsources (uses) (32,241,366) 49,073,882 (781,051) (49,854,933)



56



Original Final

VariancePositive


Special Items - Proceeds from sale ofcapital assets 9,000,000$ 9,000,000$ 9,071,440$ 71,440$

Net Change in Fund Balance - (102,038,634) (28,952,992) 73,085,642

Fund Balance - July 1, 2002 103,603,001 103,603,001 103,603,001 -

Fund Balance - June 30, 2003 103,603,001$ 1,564,367$ 74,650,009$ 73,085,642$



57

Debt Service Funds

Food Services Athletics Bond Redemption Judgment Levy

Assets

Investments - $ - $ 6,162,513$ - $ Receivables:

Property taxes:Current - - 5,907,277 90,951 Delinquent - Net of allowance for

uncollectible taxes of $1,487,000 - - 28,061,777 1,679,393 Due from other governmental units 6,485,856 - - - Other 990,644 - 5,659 -

Due from other funds - 204,410 15,766,248 611,860

Total assets 7,476,500$ 204,410$ 55,903,474$ 2,382,204$

Liabilities and Fund Balances

LiabilitiesAccounts payable 2,107,096$ 204,410$ - $ - $ Delinquent property taxes - - 28,061,777 1,679,393 Due to other funds 5,369,130 - - - Other liabilities 274 - - -

Total liabilities 7,476,500 204,410 28,061,777 1,679,393

Fund BalancesReserved for encumbrances - - - - Unreserved - Designated for debt service - - 27,841,697 702,811

Total fund balances - - 27,841,697 702,811

Total liabilities and fundbalances 7,476,500$ 204,410$ 55,903,474$ 2,382,204$

Special Revenue Funds

58

Other Supplemental Information Combining Balance Sheet

Nonmajor Governmental Funds June 30, 2003

Capital Projects Funds

1986 School

Building Site

Improvement

Bonds

1994 School

Building Site

Improvement

Bonds Series I Durant Bond Total

12,167,219$ 97,707$ 5,217,036$ 23,644,475$

- - - 5,998,228

- - - 29,741,170 - - - 6,485,856

10,888 66 7,470 1,014,727 32,379 11,741,402 1,313,930 29,670,229

12,210,486$ 11,839,175$ 6,538,436$ 96,554,685$

9,125$ 1,158,217$ 67,816$ 3,546,664$ - - - 29,741,170 - 1,269,982 - 6,639,112 - - - 274

9,125 2,428,199 67,816 39,927,220

12,201,361 9,410,976 6,470,620 28,082,957 - - - 28,544,508

12,201,361 9,410,976 6,470,620 56,627,465

12,210,486$ 11,839,175$ 6,538,436$ 96,554,685$


59

Food Services Athletics Bond Redemption

Deficit

Funding Bonds Judgment Levy

Revenue Local sources 7,755,327$ - $ 88,973,635$ - $ 1,661,462$ State sources 2,802,238 - - - -

Federal sources 36,938,275 - - - -

Total revenue 47,495,840 - 88,973,635 - 1,661,462

Expenditures Current:

Food services 46,560,407 - - - - Athletics - 1,716,264 - - -

Debt service: Principal retirement - - 38,925,000 - - Payment of interest - - 54,200,461 - -

Capital outlay: Capitalized - - - - - Not capitalized 220 - - - -

Other - - - - 1,028,181

Total expenditures 46,560,627 1,716,264 93,125,461 - 1,028,181

Excess of Revenue Over (Under)Expenditures 935,213 (1,716,264) (4,151,826) - 633,281

Other Financing Sources (Uses) Transfers in - 1,716,264 - - - Transfers out (935,213) - - - - Transfers in to close deficit funding

bond fund - - 4,302,688 - - Transfers out to close deficit funding

bond fund - - - (4,302,688) - Transfer to bond escrow agent - - (16,043,748) - - Sale of bonds - Face amount - - 16,060,000 - -

Sale of bonds - Premium - - - - -

Total other financing sources (uses) (935,213) 1,716,264 4,318,940 (4,302,688) -

Net Change in Fund Balance - - 167,114 (4,302,688) 633,281

Fund Balances - Beginning of year - - 27,674,583 4,302,688 69,530

Fund Balances - End of year - $ - $ 27,841,697$ - $ 702,811$

Special Revenue Funds Debt Service Funds

60

Other Supplemental Information Combining Statement of Revenue, Expenditures,

and Changes in Fund Balances Nonmajor Governmental Funds


1986 School

Building Site

Improvement

Bonds

1994 School

Building Site

Improvement

Bonds Series I Durant Bond Total

190,450$ - $ 298,850$ 98,879,724$ - - - 2,802,238 - - - 36,938,275

190,450 - 298,850 138,620,237

- - - 46,560,407 - - - 1,716,264

- - - 38,925,000 - - - 54,200,461

- 3,604,273 - 3,604,273 - - 1,398,049 1,398,269 - 3,365 - 1,031,546

- 3,607,638 1,398,049 147,436,220

190,450 (3,607,638) (1,099,199) (8,815,983)

- - - 1,716,264 - - - (935,213)

- - - 4,302,688

- - - (4,302,688) - - - (16,043,748) - - - 16,060,000 - - - -

- - - 797,303

190,450 (3,607,638) (1,099,199) (8,018,680)

12,010,911 13,018,614 7,569,819 64,646,145

12,201,361$ 9,410,976$ 6,470,620$ 56,627,465$

Capital Projects Funds


61

Other Supplemental Information Budgetary Comparison Schedule General Fund - General Purpose

for the Year Ended June 30, 2003

Variance Positive OriginalBudget

FinalBudget Actual

(Negative) toFinal Budget


Property taxes 71,500,000$ 91,292,000$ 74,715,066$ (16,576,934)$ Tuition 530,000 280,000 707,441 427,441 Earnings on investments 4,200,000 1,800,000 1,849,862 49,862 Other 1,885,000 1,770,321 - (1,770,321)

Total local sources 78,115,000 95,142,321 77,272,369 (17,869,952)

State sources:State aid foundation 952,911,388 987,940,472 992,568,740 4,628,268 Other 6,421,000 6,430,000 5,930,443 (499,557)

Total state sources 959,332,388 994,370,472 998,499,183 4,128,711

Federal sources - Other 11,100,000 10,318,000 10,786,688 468,688

Total revenue 1,048,547,388 1,099,830,793 1,086,558,240 (13,272,553)


K12:Salaries 300,918,551 368,381,310 345,562,209 22,819,101 Benefits 101,037,662 113,293,955 117,973,125 (4,679,170) Purchased services 216,817 3,826,316 5,934,384 (2,108,068) Supplies 32,311,453 37,538,166 27,482,220 10,055,946 Capital outlay - 15,000 78,220 (63,220) Other 87,921 70,569 56,375 14,194

Total K-12 434,572,404 523,125,316 497,086,533 26,038,783

Pre-school:Salaries 887,875 3,114,245 2,627,793 486,452 Benefits 344,279 2,223,694 796,253 1,427,441 Purchased services - - - - Supplies 10,000 1,188,000 1,180,000 8,000 Capital outlay - - - - Other - - - -

Total Pre-school 1,242,154 6,525,939 4,604,046 1,921,893



62

Other Supplemental Information Budgetary Comparison Schedule

General Fund - General Purpose (Continued) for the Year Ended June 30, 2003


FinalBudget Actual


Expenditures (Continued)Instruction (Continued):

Summer school:Salaries 1,235,158$ 1,241,799$ 1,059,151$ 182,648$ Benefits 129,553 242,868 218,573 24,295 Purchased services 51,000 176,600 107,866 68,734 Supplies - 9,200 - 9,200 Capital outlay - 4,800 - 4,800 Other - - - -

Total summer school 1,415,711 1,675,267 1,385,590 289,677

Special education:Salaries 481,546 786,407 61,562 724,845 Benefits 87,134 167,512 18,533 148,979 Purchased services - - - - Supplies - - - - Capital outlay - - - - Other - - 1,439,511 (1,439,511)

Total special education 568,680 953,919 1,519,606 (565,687)

Compensatory education:Salaries 3,583,945 4,221,661 4,106,770 114,891 Benefits 1,411,559 1,468,570 1,518,515 (49,945) Purchased services 193,381 100,307 77,337 22,970 Supplies (20,558) 150,579 65,432 85,147 Capital outlay - - - - Other - - - -

Total compensatoryeducation 5,168,327 5,941,117 5,768,054 173,063

Vocational education:Salaries 16,027,767 19,117,587 19,241,036 (123,449) Benefits 5,434,862 6,010,364 6,334,415 (324,051) Purchased services 254,187 1,383,858 1,034,726 349,132 Supplies 2,910,166 2,501,195 1,388,034 1,113,161 Capital outlay 605,000 590,361 273,604 316,757 Other - - - -

Total vocationaleducation 25,231,982 29,603,365 28,271,815 1,331,550



63




FinalBudget Actual



Adult education:Salaries 574,087$ 692,532$ 627,788$ 64,744$ Benefits 201,655 173,981 166,467 7,514 Purchased services 228,925 151,985 63,449 88,536 Supplies 9,250 15,928 1,722 14,206 Capital outlay 6,000 4,800 - 4,800 Other - - 393 (393)

Total adult education 1,019,917 1,039,226 859,819 179,407


Support services:Pupil services:

Salaries 13,569,773 17,376,047 17,549,397 (173,350) Benefits 4,430,807 5,249,127 5,491,358 (242,231) Purchased services 1,764,011 1,538,780 1,182,261 356,519 Supplies 431,551 433,400 336,310 97,090 Capital outlay - - - - Other 2,097 3,138 4,758 (1,620)

Total pupil services 20,198,239 24,600,492 24,564,084 36,408

Instructional staff support:Salaries 11,185,008 13,906,687 13,579,043 327,644 Benefits 3,619,088 4,148,187 4,334,359 (186,172) Purchased services 4,348,888 1,670,832 1,678,074 (7,242) Supplies 887,816 1,491,853 4,579,325 (3,087,472) Capital outlay 471,841 1,481,416 1,297,456 183,960 Other 2,996,951 2,034,735 2,233,962 (199,227)

Total instructionalstaff support 23,509,592 24,733,710 27,702,219 (2,968,509)

School administration:Salaries 64,649,291 73,470,860 75,569,163 (2,098,303) Benefits 20,793,614 22,248,578 23,787,804 (1,539,226) Purchased services 1,210,172 1,199,337 1,812,393 (613,056) Supplies 460,679 742,338 748,000 (5,662) Capital outlay 1,414,316 1,174,361 295,015 879,346 Other 969,105 383,255 520,112 (136,857)

Total schooladministration 89,497,177 99,218,729 102,732,487 (3,513,758)



64




FinalBudget Actual


Expenditures (Continued)Support services (Continued):

General admininstration:Salaries 4,950,910$ 5,336,034$ 5,489,888$ (153,854)$ Benefits 1,379,995 1,374,306 1,504,582 (130,276) Purchased services 7,200,898 3,935,031 2,923,905 1,011,126 Supplies 414,173 375,666 152,980 222,686 Capital outlay 35,000 81,926 5,620 76,306 Other 2,019,024 2,920,527 2,154,748 765,779

Total generaladministration 16,000,000 14,023,490 12,231,723 1,791,767

Business office:Salaries 12,778,100 14,952,592 14,438,355 514,237 Benefits 4,833,407 16,561,827 4,975,654 11,586,173 Purchased services 8,210,606 20,911,100 17,628,815 3,282,285 Supplies 726,700 599,195 89,245 509,950 Capital outlay 493,000 388,912 222,597 166,315 Other 80,500 1,211,228 5,430,404 (4,219,176)

Total business office 27,122,313 54,624,854 42,785,070 11,839,784

Operations and maintenanceSalaries 76,865,192 99,023,283 96,413,219 2,610,064 Benefits 33,533,446 36,183,535 38,006,509 (1,822,974) Purchased services 20,188,760 16,964,362 49,933,126 (32,968,764) Supplies 42,858,841 44,399,044 6,191,609 38,207,435 Capital outlay 958,574 4,849,487 4,494,843 354,644 Other 1,739,050 2,635,485 1,095,175 1,540,310

Total operationsmaintenance 176,143,863 204,055,196 196,134,481 7,920,715

Transportation:Salaries 15,604,173 20,644,022 20,152,613 491,409 Benefits 3,817,643 8,896,062 9,689,463 (793,401) Purchased services 16,253,764 16,400,416 15,905,599 494,817 Supplies 3,083,600 2,466,880 2,218,167 248,713 Capital outlay 181,500 145,200 58,998 86,202 Other 185,500 150,610 474,168 (323,558)

Total transportation 39,126,180 48,703,190 48,499,008 204,182 Note - This budget statement is in greater detail than the adopted budget.


65




FinalBudget Actual



Other support services:Salaries 11,428,089$ 14,219,571$ 14,122,736$ 96,835$ Benefits 3,815,933 4,684,914 8,947,811 (4,262,897) Purchased services 81,771,415 48,779,006 46,076,458 2,702,548 Supplies 1,866,053 3,203,499 1,960,335 1,243,164 Capital outlay 1,706,008 9,187,631 5,296,334 3,891,297 Other 3,424,202 73,083,752 4,544,154 68,539,598

Total other supportservices 104,011,700 153,158,373 80,947,828 72,210,545


Community service:Salaries 474,530 468,624 489,089 (20,465) Benefits 155,556 137,427 152,753 (15,326) Purchased services 204,280 370,525 70,395 300,130 Supplies 87,500 70,272 27,476 42,796 Capital outlay 89,000 71,200 6,394 64,806 Other 15,000 - - -

Total community service 1,025,866 1,118,048 746,107 371,941

Miscellaneous:Salaries - - - - Benefits - - - - Purchased services - - - - Supplies - - - - Capital outlay - - - - Other 41,170 32,936 8,326 24,610

Total miscellaneous 41,170 32,936 8,326 24,610

Principal retirement - 3,280,000 3,280,000 - Payment of interest 3,360,000 3,792,875 555,141 3,237,734

Total expenditures 969,255,275 1,200,206,042 1,079,681,937 120,524,105 Note - This budget statement is in greater detail than the adopted budget.


66




FinalBudget Actual


Other Financing Sources (Uses)Transfers in 8,492,000$ 5,000,000$ 5,996,005$ 996,005$ Transfers out (96,784,113) (13,579,351) (55,519,651) (41,940,300)

Total other financingsources (uses) (88,292,113) (8,579,351) (49,523,646) (40,944,295)

Special Items - Proceeds from thesale of capital assets 9,000,000 9,000,000 9,071,440 71,440

Net Change in Fund Balance - $ (99,954,600)$ (33,575,903)$ 66,378,697$ Note - This budget statement is in greater detail than the adopted budget.


67


General Fund - Designated Special Purpose Grants for the Year Ended June 30, 2003


FinalBudget Actual


RevenuesLocal sources - Other 7,398,057$ 7,903,711$ 3,250,544$ (4,653,167)$ State sources:

State aid foundation 2,470,166 2,470,166 3,142,764 672,598 At-risk 89,588,160 81,835,261 79,509,349 (2,325,912) Other 17,236,784 18,904,600 22,053,894 3,149,294

Total state sources 109,295,110 103,210,027 104,706,007 1,495,980

Federal sources:Title I 128,597,886 130,316,404 112,355,738 (17,960,666) Other 101,676,936 97,996,008 83,644,436 (14,351,572)


Total revenue 346,967,989 339,426,150 303,956,725 (35,469,425)


K12:Salaries 17,991,805 5,223,029 3,964,482 1,258,547 Benefits 6,195,597 2,060,003 1,890,679 169,324 Purchased services 805,420 849,614 490,132 359,482 Supplies 276,291 245,607 168,607 77,000 Capital outlay 132,351 119,051 105,783 13,268 Other 2,891,729 2,601,788 177,559 2,424,229

Total K-12 28,293,193 11,099,092 6,797,242 4,301,850

Pre-school:Salaries 21,930,418 20,921,748 22,650,596 (1,728,848) Benefits 8,847,764 7,705,993 8,007,847 (301,854) Purchased services 476,236 826,209 453,818 372,391 Supplies 766,702 839,628 1,037,676 (198,048) Capital outlay 32,000 654,139 360,604 293,535 Other 174,684 216,891 207,430 9,461

Total pre-school 32,227,804 31,164,608 32,717,971 (1,553,363)

Note - This budget statement is in greater detail than the adopted budget


68


General Fund - Designated Special Purpose Grants (Continued) for the Year Ended June 30, 2003


FinalBudget Actual



Summer school:Salaries 81,133$ 5,895,294$ 1,640,444$ 4,254,850$ Benefits 29,957 1,224,854 334,936 889,918 Purchased services 10,000 485,240 - 485,240 Supplies 1,000 2,281,560 - 2,281,560 Capital outlay - - - - Other - 3,977,610 - 3,977,610

Total summer school 122,090 13,864,558 1,975,380 11,889,178

Special educationSalaries 10,761,611 11,792,226 10,463,255 1,328,971 Benefits 5,067,956 5,211,096 4,288,120 922,976 Purchased services 401,694 392,183 141,518 250,665 Supplies 552,716 1,560,598 494,138 1,066,460 Capital outlay 93,171 75,703 1,032,820 (957,117) Other 83,377 2,621 2,944 (323)


Compensatory education:Salaries 90,216,967 75,943,663 98,626,690 (22,683,027) Benefits 31,653,272 28,012,632 32,140,342 (4,127,710) Purchased services 4,523,119 15,575,612 5,095,108 10,480,504 Supplies 21,839,043 23,984,356 9,164,004 14,820,352 Capital outlay 943,991 1,412,668 695,137 717,531 Other 444,530 871,266 972,749 (101,483)

Total compensatoryeducation 149,620,922 145,800,197 146,694,030 (893,833)

Vocational education:Salaries 3,548,503 2,661,100 3,127,822 (466,722) Benefits 1,218,516 1,058,616 964,829 93,787 Purchased services 629,895 625,311 498,698 126,613 Supplies 1,527,634 2,467,364 2,562,126 (94,762) Capital outlay 991,023 1,050,952 231,708 819,244 Other 45,505 213,556 167,364 46,192

Total vocationaleducation 7,961,076 8,076,899 7,552,547 524,352



69




FinalBudget Actual



Adult education:Salaries 4,766,687$ 6,113,617$ 3,672,348$ 2,441,269$ Benefits 1,525,184 1,989,649 1,149,976 839,673 Purchased services 245,397 521,437 154,744 366,693 Supplies 152,872 578,074 80,958 497,116 Capital outlay - - - - Other - - - -




Salaries 26,617,642 25,437,811 25,251,865 185,946 Benefits 9,667,066 9,196,131 8,723,592 472,539 Purchased services 2,678,345 3,085,806 1,897,511 1,188,295 Supplies 4,454,534 1,266,138 277,618 988,520 Capital outlay 70,000 102,641 4,718 97,923 Other 402,488 288,147 654,407 (366,260)


Instructional staff support:Salaries 8,199,637 17,793,914 12,097,216 5,696,698 Benefits 2,090,349 4,642,629 4,426,537 216,092 Purchased services 6,247,263 7,672,375 6,060,417 1,611,958 Supplies 2,163,824 2,437,034 1,827,775 609,259 Capital outlay 710,055 1,480,125 1,392,823 87,302 Other 18,743,953 3,322,065 1,627,064 1,695,001

Total instructional staffsupport 38,155,081 37,348,142 27,431,832 9,916,310



70




FinalBudget Actual



School administration:Salaries 3,590,601$ 2,386,310$ 2,475,207$ (88,897)$ Benefits 1,591,653 1,117,090 1,270,772 (153,682) Purchased services 395,719 432,915 91,273 341,642 Supplies 19,316 37,000 36,938 62 Capital outlay 104,125 74,625 169,527 (94,902) Other 216,666 212,328 62,870 149,458

Total schooladministration 5,918,080 4,260,268 4,106,587 153,681

General administration:Salaries 1,413,826 1,457,827 771,576 686,251 Benefits 506,514 409,662 300,700 108,962 Purchased services 166,354 130,326 133,342 (3,016) Supplies 49,000 33,390 29,453 3,937 Capital outlay - - - - Other 72,188 15,514 90 15,424

Total generaladministration 2,207,882 2,046,719 1,235,161 811,558

Operations and maintenance:Salaries - - - - Benefits - - - - Purchased services - 5,481,519 5,351,376 130,143 Supplies - - - - Capital outlay - - - - Other - - - -

Total operations andmaintenance - 5,481,519 5,351,376 130,143



71




FinalBudget Actual



Transportation:Salaries 12,064$ 12,064$ - $ 12,064$ Benefits - - - - Purchased services 1,936 175,766 - 175,766 Supplies 500 500 1,706 (1,206) Capital outlay - - - - Other 500 500 - 500

Total transportation 15,000 188,830 1,706 187,124

Other supp services:Salaries 1,080,617 765,903 690,085 75,818 Benefits 350,981 246,668 300,581 (53,913) Purchased services 277,666 530,575 415,426 115,149 Supplies 49,125 95,164 14,935 80,229 Capital outlay - 12,000 34 11,966 Other 69,741 60,414 27,463 32,951

Total other supportservices 1,828,130 1,710,724 1,448,524 262,200


Community service:Salaries 2,266,364 2,028,806 2,121,291 (92,485) Benefits 879,186 922,400 607,618 314,782 Purchased services 722,849 1,858,776 1,829,363 29,413 Supplies 12,280 49,284 55,756 (6,472) Capital outlay - - 70,466 (70,466) Other 375,574 355,015 388,143 (33,128)

Total community service 4,256,253 5,214,281 5,072,637 141,644



72




FinalBudget Actual


Expenditures (Continued)Instruction (Continued):Miscellaneous:

Salaries 93,133$ 93,134$ 41,402$ 51,732$ Benefits 47,929 47,929 18,315 29,614 Purchased services - - - - Supplies 109,614 109,614 109,614 - Capital outlay 875,986 875,986 989,398 (113,412) Other - - 757,806 (757,806)

Total miscellaneous 1,126,662 1,126,663 1,916,535 (789,872)

Total expenditures 339,272,913 334,996,378 300,592,060 34,404,318

Other Financing Sources (Uses)Intergovernmental transfers - - - - Payment of principal - - - - Payment of interest - - - - Transfers in 580,090 580,090 - (580,090) Transfers out (8,275,166) (6,672,680) (4,638,011) 2,034,669

Total other financingsources (uses) (7,695,076) (6,092,590) (4,638,011) 1,454,579

Net Change in Fund Balance - $ (1,662,818)$ (1,273,346)$ 389,472$



73

Other Supplemental Information Budgetary Comparison Schedule General Fund - Adult Education



FinalBudget Actual



FinalBudget Actual


Revenues - State sources - State aidfoundation 14,113,000$ 17,088,916$ 17,894,886$ 805,970$

Expenditures - InstructionAdult education:

Salaries 3,022,308 2,936,899 1,366,184 1,570,715 Benefits 882,157 882,156 388,547 493,609 Purchased services 20,500 20,500 12,587 7,913 Supplies 11,500 11,500 7,458 4,042 Capital outlay - - - - Other - - - -




Salaries 41,004 41,004 35,278 5,726 Benefits 17,265 17,265 11,188 6,077 Purchased services - - - - Supplies - - - - Capital outlay - - - - Other - - - -

Total pupil services 58,269 58,269 46,466 11,803

Instructional staff support:Salaries 68,603 68,603 - 68,603 Benefits 22,905 22,905 - 22,905 Purchased services 5,000 5,000 1,237 3,763 Supplies 4,500 4,500 - 4,500 Capital outlay - - - - Other - - - -

Total instructional staffsupport 101,008 101,008 1,237 99,771



74


General Fund - Adult Education (Continued) for the Year Ended June 30, 2003


FinalBudget Actual


Expenditures - Instruction (Continued)Support services (Continued):

School administration:Salaries 1,867,018$ 1,891,779$ 1,521,219$ 370,560$ Benefits 658,779 658,778 499,918 158,860 Purchased services 7,450,961 10,487,527 6,376,427 4,111,100 Supplies 29,000 29,000 7,299 21,701 Capital outlay 5,000 5,000 1,427 3,573 Other 6,500 6,500 2,494 4,006

Total school administration 10,017,258 13,078,584 8,408,784 4,669,800

Other support services:Salaries - - 6,384 (6,384) Benefits - - 1,191 (1,191) Purchased services - - - - Supplies - - - - Capital outlay - - - - Other - - - -

Total other support services - - 7,575 (7,575)



Net Change in Fund Balance - $ - $ 7,656,048$ 7,656,048$



75

Other Supplemental Information Budgetary Comparison Schedule General Fund - Special Education for the Year Ended June 30, 2003


FinalBudget Actual


RevenuesLocal sources - Special Education

Millage 47,280,273$ 47,280,273$ 55,166,068$ 7,885,795$ State sources:

State aid foundation 96,550,612 96,550,612 70,349,755 (26,200,857) Other - - - -

Total state sources 96,550,612 96,550,612 70,349,755 (26,200,857)

Total revenue 143,830,885 143,830,885 125,515,823 (18,315,062)

ExpendituresInstruction - Special education:

Salaries 112,282,193 110,995,230 96,375,328 14,619,902 Benefits 37,292,925 36,894,987 31,629,444 5,265,543 Purchased services 1,285,771 2,362,142 1,465,799 896,343 Supplies 2,334,053 3,035,787 1,486,765 1,549,022 Capital outlay 895,587 914,920 529,326 385,594 Other 598,707 109,949 5,226,803 (5,116,854)




Salaries 18,012,478 17,955,812 17,525,923 429,889 Benefits 6,025,937 6,005,471 5,632,832 372,639 Purchased services 156,564 112,267 40,673 71,594 Supplies 346,555 337,313 175,811 161,502 Capital outlay 21,000 23,793 5,327 18,466 Other 15,946 21,257 10,336 10,921




76


General Fund - Special Education (Continued) for the Year Ended June 30, 2003


FinalBudget Actual



Instructional staff support:Salaries - $ - $ - $ - $ Benefits - - - - Purchased services 94,000 103,205 18,624 84,581 Supplies 15,000 5,261 4,825 436 Capital outlay - - - - Other 15,000 15,013 6,272 8,741

Total instructional staffsupport 124,000 123,479 29,721 93,758

School administration:Salaries 15,824,965 17,001,994 13,217,222 3,784,772 Benefits 6,422,341 6,836,550 5,387,378 1,449,172 Purchased services 3,158,709 2,583,943 1,336,005 1,247,938 Supplies 363,816 213,815 126,537 87,278 Capital outlay 260,517 280,025 146,260 133,765 Other 8,000 42,546 32,586 9,960

Total schooladministration 26,038,348 26,958,873 20,245,988 6,712,885

Other support services:Salaries 353,685 353,685 340,064 13,621 Benefits 142,959 142,959 136,935 6,024 Purchased services - - - - Supplies - - - - Capital outlay - - - - Other - - - -

Total other supportservices 496,644 496,644 476,999 19,645





77


General Fund - Special Education (Continued) for the Year Ended June 30, 2003


FinalBudget Actual


Other Financing Sources (Uses)Intergovernmental transfers - $ - $ - $ - $ Payment of principal - - - - Payment of interest - - - - Transfers in 62,095,823 62,095,823 53,353,731 (8,742,092) Transfers out - - - -

Total other financingsources (uses) 62,095,823 62,095,823 53,353,731 (8,742,092)

Net Change in Fund Balance - $ (421,216)$ (1,987,521)$ (1,566,305)$



78

Other Supplemental Information Budgetary Comparison Schedule General Fund - Community Uses



FinalBudget Actual


Revenues - Local sources - Other - $ - $ 249,308$ 249,308$

Expenditures - Community serviceSalaries 1,527,008 1,527,008 32,451 1,494,557 Benefits 8 8 16,002 (15,994) Purchased services 66,250 66,250 - 66,250 Supplies 21,687 21,687 - 21,687 Capital outlay 17,063 17,063 - 17,063 Other 17,984 17,984 - 17,984

Total community service 1,650,000 1,650,000 48,453 1,601,547

Total expenditures 1,650,000 1,650,000 48,453 1,601,547

Other Financing Sources (Uses) -Transfers in 1,650,000 1,650,000 26,875 (1,623,125)

Net Change in Fund Balance - $ - $ 227,730$ 227,730$



79


Athletics Fund for the Year Ended June 30, 2003


FinalBudget Actual


ExpendituresSalaries 510,000$ 340,000$ 140,737$ 199,263$ Benefits 175,000 175,000 16,408 158,592 Purchased services 1,156,750 1,156,750 670,616 486,134 Supplies 766,450 936,450 888,503 47,947 Capital outlay - - - - Other - - - -

Total expenditures 2,608,200 2,608,200 1,716,264 891,936

Other Financing Sources and (Uses) -Transfers in 2,608,200 2,608,200 1,716,264 (891,936)

Net Change in Fund Balance - - - -

Fund Balance - July 1, 2002 - - - -

Fund Balance - June 30, 2003 - $ - $ - $ - $



80


Food Service Fund for the Year Ended June 30, 2003


FinalBudget Actual



Sales to users 5,296,649$ 5,296,649$ 5,338,578$ 41,929$ Other - - 2,416,749 2,416,749

Total local sources 5,296,649 5,296,649 7,755,327 2,458,678

State sources:At-risk 2,785,803 2,785,803 1,096,890 (1,688,913) Other - - 1,705,348 1,705,348

Total state sources 2,785,803 2,785,803 2,802,238 16,435

Federal sources:National School Lunch 40,264,336 40,264,336 33,926,311 (6,338,025) USDA entitlement 1,458,990 1,458,990 3,011,964 1,552,974


Total revenue 49,805,778 49,805,778 47,495,840 (2,309,938)

ExpendituresSalaries 13,117,978 13,117,978 12,394,559 723,419 Benefits 4,188,369 4,188,369 5,091,739 (903,370) Purchased services 30,398,335 30,398,335 26,044,669 4,353,666 Supplies 79,000 79,000 3,029,440 (2,950,440) Capital outlay 200,000 200,000 220 199,780 Other 22,096 22,097 - 22,097


Other Financing Sources and (Uses) -Transfers out (1,800,000) (1,800,000) (935,213) 864,787

Net Change in Fund Balance - - - -

Fund Balance - July 1, 2002 - - - -

Fund Balance - June 30, 2003 - $ - $ - $ - $ Note - This budget statement is in greater detail than the adopted budget


81


Bond Redemption Fund for the Year Ended June 30, 2003


FinalBudget

Actual(GAAP Basis)



Property taxes 87,055,787$ 87,055,787$ 88,470,945$ 1,415,158$ Earnings on investments - - 502,690 502,690

Total local sources 87,055,787 87,055,787 88,973,635 1,917,848

State sources - State aid 7,159,325 7,159,325 - (7,159,325)

Total revenue 94,215,112 94,215,112 88,973,635 (5,241,477)

ExpendituresPrincipal retirement 34,810,361 34,810,361 38,925,000 (4,114,639) Payment of interest 59,404,751 59,404,751 54,200,461 5,204,290 Other - - - -


Other Financing Sources (Uses)Transfers in to close deficiting funding bonds fund - - 4,302,688 4,302,688 Transfers to bond escrow agent - - (16,043,748) (16,043,748) Sale of bonds - Face amount - - 16,060,000 16,060,000 Sale of bonds - Premium - - - -

Total other financing sources (uses) - - 4,318,940 4,318,940

Net Change in Fund Balance - - 167,114 167,114


Fund Balance - June 30, 2003 27,674,583$ 27,674,583$ 27,841,697$ 167,114$



82


Judgment Levy Fund for the Year Ended June 30, 2003


FinalBudget Actual


Revenues - Local sources - Property taxes 1,028,168$ 1,028,168$ 1,661,462$ 633,294$

Expenditures - Other expenditures 1,028,168 1,028,168 1,028,181 (13)

Net Change in Fund Balance - - 633,281 633,281

Fund Balance - July 1, 2002 69,530 69,530 69,530 -

Fund Balance - June 30, 2003 69,530$ 69,530$ 702,811$ 633,281$ Note - This budget statement is in greater detail than the adopted budget


83


Durant Bond for the Year Ended June 30, 2003


FinalBudget

Actual(GAAP Basis)


Revenues - Local sources - Earningsinvestments - $ - $ 298,850$ 298,850$

Expenditures - Capital outlay 7,569,819 7,569,819 1,398,049 6,171,770

Net Change in Fund Balance (7,569,819) (7,569,819) (1,099,199) 6,470,620


Fund Balance - June 30, 2003 - $ - $ 6,470,620$ 6,470,620$



84


1986 Site Improvement Bond for the Year Ended June 30, 2003


FinalBudget

Actual(GAAP Basis)



Earnings on investments - $ - $ 168,250$ 168,250$ Other - - 22,200 22,200

Total local sources - - 190,450 190,450

Total revenue - - 190,450 190,450

Expenditures - Capital outlay 12,010,911 12,010,911 - 12,010,911

Net Change in Fund Balance (12,010,911) (12,010,911) 190,450 12,201,361


Fund Balance - June 30, 2003 - $ - $ 12,201,361$ 12,201,361$ Note - This budget statement is in greater detail than the adopted budget


85

Function LandConstruction in

Progress

Building and Building

ImprovementsLand

improvements

Cost:Unallocated 5,994,357$ 621,331,015$ 185,096,635$ 3,503,551$ Instruction 9,418,124 - 519,614,271 21,952,029 Support services 617,241 - 31,118,961 476,953 Community services - - - - Food services - - - -

Total 16,029,722 621,331,015 735,829,867 25,932,533

Accumulated depreciation:Unallocated - - 110,054,504 3,158,815 Instruction - - 212,254,060 5,427,427 Support services - - 2,975,800 464,343 Community services - - - - Food services - - - -

Total - - 325,284,364 9,050,585

Net book value:Unallocated 5,994,357 621,331,015 75,042,131 344,736 Instruction 9,418,124 - 307,360,211 16,524,602 Support services 617,241 - 28,143,161 12,610 Community services - - - - Food services - - - -

Total 16,029,722$ 621,331,015$ 410,545,503$ 16,881,948$

86

Other Supplemental Information Schedule of General Capital Assets by Function

June 30, 2003

Buses and other vehicles

Machinery and equipment Totals

- $ 472,867$ 816,398,425$ - 38,068,086 589,052,510

40,969,637 11,109,851 84,292,643 - 41,786 41,786

915,702 3,941,209 4,856,911

41,885,339 53,633,799 1,494,642,275

- 355,669 113,568,988 - 14,176,129 231,857,616

23,229,590 5,202,177 31,871,910 - 26,201 26,201

879,327 3,152,129 4,031,456

24,108,917 22,912,305 381,356,171

- 117,198 702,829,437 - 23,891,957 357,194,894

17,740,047 5,907,674 52,420,733 - 15,585 15,585

36,375 789,080 825,455

17,776,422$ 30,721,494$ 1,113,286,104$


87

Cost

Function

Balance

July 1, 2002 Reclassifications Additions

Disposals and

Adjustments

Balance

June 30, 2003

Unallocated:Land 5,994,357$ - $ - $ - $ 5,994,357$ Construction in progress 466,202,955 (187,712,805) 342,840,865 - 621,331,015 Building and building improvements 182,317,674 - 2,778,961 - 185,096,635 Land improvements 3,503,551 - - - 3,503,551 Buses and other vehicles - - - - - Machinery and equipment 388,745 - 84,122 - 472,867

Total 658,407,282 (187,712,805) 345,703,948 - 816,398,425

Instruction:Land 7,376,568 2,041,556 - - 9,418,124 Construction in progress - - - - - Building and building improvements 384,812,583 132,359,841 2,441,847 - 519,614,271 Land improvements 6,280,843 15,652,966 18,220 - 21,952,029 Buses and other vehicles - - - - - Machinery and equipment 22,967,754 13,508,442 1,591,890 - 38,068,086

Total 421,437,748 163,562,805 4,051,957 - 589,052,510

Support services:Land 703,116 - - (85,875) 617,241 Construction in progress - - - - - Building and building improvements 12,245,939 24,150,000 - (5,276,978) 31,118,961 Land improvements 499,784 - - (22,831) 476,953 Buses and other vehicles 43,297,941 - - (2,328,304) 40,969,637 Machinery and equipment 11,094,707 - 734,129 (718,985) 11,109,851

Total 67,841,487 24,150,000 734,129 (8,432,973) 84,292,643

Community services:Land - - - - - Construction in progress - - - - - Building and building improvements - - - - - Land improvements - - - - - Buses and other vehicles - - - - - Machinery and equipment 41,786 - - - 41,786

Total 41,786 - - - 41,786

Food services:Land - - - - - Construction in progress - - - - - Building and building improvements - - - - - Land improvements - - - - - Buses and other vehicles 983,418 - - (67,716) 915,702 Machinery and equipment 3,941,209 - - - 3,941,209

Total 4,924,627 - - (67,716) 4,856,911

Total 1,152,652,930$ - $ 350,490,034$ (8,500,689)$ 1,494,642,275$

Land 14,074,041$ 2,041,556$ - $ (85,875)$ 16,029,722$ Construction in progress 466,202,955 (187,712,805) 342,840,865 - 621,331,015 Building and building improvements 579,376,196 156,509,841 5,220,808 (5,276,978) 735,829,867 Land improvements 10,284,178 15,652,966 18,220 (22,831) 25,932,533 Buses and other vehicles 44,281,359 - - (2,396,020) 41,885,339

Machinery and equipment 38,434,201 13,508,442 2,410,141 (718,985) 53,633,799

Total 1,152,652,930$ - $ 350,490,034$ (8,500,689)$ 1,494,642,275$

88

Other Supplemental Information Schedule of Changes in General Capital Assets by Function

June 30, 2003

Accumulated Depreciation

Balance

July 1, 2002 Additions

Disposals and

Adjustments

Balance

June 30, 2003

Net Book Value June 30,

2003

- $ - $ - $ - $ 5,994,357$ - - - - 621,331,015

106,945,447 3,109,058 - 110,054,505 75,042,130 3,112,996 45,819 - 3,158,815 344,736

- - - - - 346,539 8,831 - 355,370 117,497

110,404,982 3,163,708 - 113,568,690 702,829,735

- - - - 9,418,124 - - - - -

206,171,611 6,082,449 - 212,254,060 307,360,211 4,932,614 494,813 - 5,427,427 16,524,602

- - - - - 11,297,969 2,878,459 - 14,176,428 23,891,658

222,402,194 9,455,721 - 231,857,915 357,194,595

- - - - 617,241 - - - - -

6,435,524 360,070 (3,819,795) 2,975,799 28,143,162 476,190 5,653 (17,500) 464,343 12,610

22,202,106 3,574,514 (2,547,030) 23,229,590 17,740,047 3,987,931 1,500,587 (286,341) 5,202,177 5,907,674

33,101,751 5,440,824 (6,670,666) 31,871,909 52,420,734

- - - - - - - - - - - - - - - - - - - - - - - - -

22,811 3,390 - 26,201 15,585

22,811 3,390 - 26,201 15,585

- - - - - - - - - - - - - - - - - - - -

922,793 24,250 (67,716) 879,327 36,375 3,015,188 136,941 - 3,152,129 789,080

3,937,981 161,191 (67,716) 4,031,456 825,455

369,869,719$ 18,224,834$ (6,738,382)$ 381,356,171$ 1,113,286,104$

- $ - $ - $ - $ 16,029,722$ - - - - 621,331,015

319,552,582 9,551,577 (3,819,795) 325,284,364 410,545,503 8,521,800 546,285 (17,500) 9,050,585 16,881,948

23,124,899 3,598,764 (2,614,746) 24,108,917 17,776,422

18,670,438 4,528,208 (286,341) 22,912,305 30,721,494

369,869,719$ 18,224,834$ (6,738,382)$ 381,356,171$ 1,113,286,104$


89

Series 2001A Series 2002A

Year Year # Bond Premium

Bond Premium

Amortization

Long-term

Portion

Current

Portion Year # Bond Premium

Bond Premium

Amortization

Long-term

Portion

Current

Portion

35,879,603$ 10,820,681$ 2002 1 32,617,821 3,261,782$ 29,356,039$ 3,261,782$ 2003 2 29,356,039 3,261,782 26,094,257 3,261,782 1 9,836,983 983,698$ 8,853,285$ 983,698$ 2004 3 26,094,257 3,261,782 22,832,475 3,261,782 2 8,853,284 983,699 7,869,585 983,699 2005 4 22,832,475 3,261,782 19,570,693 3,261,782 3 7,869,586 983,698 6,885,888 983,698 2006 5 19,570,693 3,261,782 16,308,911 3,261,782 4 6,885,888 983,698 5,902,190 983,698 2007 6 16,308,910 3,261,783 13,047,127 3,261,783 5 5,902,190 983,698 4,918,492 983,698 2008 7 13,047,128 3,261,782 9,785,346 3,261,782 6 4,918,491 983,699 3,934,792 983,699 2009 8 9,785,346 3,261,782 6,523,564 3,261,782 7 3,934,793 983,698 2,951,095 983,698 2010 9 6,523,564 3,261,782 3,261,782 3,261,782 8 2,951,095 983,698 1,967,397 983,698 2011 10 3,261,782 3,261,782 - 3,261,782 9 1,967,397 983,698 983,699 983,698 2012 11 - 3,261,782 - - 10 983,698 983,699 (1) 983,699 2013 11 - 983,698 - - 20142015

Total 35,879,603$ 10,820,681$

Note: With the exception of $183,695,000 bonds maturing in Series 2002A Bonds are largely subject to redemption2029, the bonds are subject to redemption as of May 1, 2012. as of May 1, 2013As such, the Bond Series is amortized through 2012. Forsimplicity of calculation, the premium is expensed straight-linefor an equal amount for all of the years.

90

Other Supplemental Information Bond Premium June 30, 2003

Series 2003B Total

Year # Bond Premium

Bond Premium

Amortization

Long-term

Portion

Current

Portion

Bond Premium

Amortization

Long-term

Portion

Current

Portion Total

13,148,770$ 3,261,782$ 29,356,039$ 3,261,782$ 32,617,821$

1 11,953,427 1,195,343$ 10,758,084$ 1,195,343$ 5,440,823 45,705,626 5,440,823 51,146,449 2 10,758,085 1,195,342 9,562,743 1,195,342 5,440,823 40,264,803 5,440,823 45,705,626 3 9,562,742 1,195,343 8,367,399 1,195,343 5,440,823 34,823,980 5,440,823 40,264,803 4 8,367,399 1,195,343 7,172,056 1,195,343 5,440,823 29,383,157 5,440,823 34,823,980 5 7,172,056 1,195,343 5,976,713 1,195,343 5,440,824 23,942,332 5,440,824 29,383,156 6 5,976,714 1,195,342 4,781,372 1,195,342 5,440,823 18,501,510 5,440,823 23,942,333 7 4,781,371 1,195,343 3,586,028 1,195,343 5,440,823 13,060,687 5,440,823 18,501,510 8 3,586,028 1,195,343 2,390,685 1,195,343 5,440,823 7,619,864 5,440,823 13,060,687 9 2,390,685 1,195,343 1,195,342 1,195,343 5,440,823 2,179,041 5,440,823 7,619,864

10 1,195,343 1,195,342 1 1,195,342 5,440,823 - 2,179,041 2,179,041 11 - 1,195,343 - - 2,179,041 - - -

13,148,770$ 59,849,054$

Series 2003B Bonds are largely subject to redemptionas of May 1, 2013


91

Description

Maturity

Date

Interest

Rate

(Percent)

Maturing

per Period

Bonds

Outstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series XXIAmount of issue - $26,000,000

Due May 1:2003 7.750 2,050,000$ 2,050,000$ - $ (2,050,000)$ - $ 2004 7.750 2,200,000 2,200,000 - - - 2005 7.750 2,400,000 2,400,000 - - - 2006 7.750 2,600,000 2,600,000 - - - 2007 7.750 2,800,000 2,800,000 - - -

Total Series XXI issue 12,050,000 - (2,050,000) -

The Bonds were issued for the purpose of site acquisition and development, equipment acquisition, and permanent improvementsfor school buildings in the School District.

Series XXIIAmount of issue - $20,000,000

Due May 1:2003 9.375 1,275,000 1,275,000 - (1,275,000) - 2004 9.350 1,400,000 1,400,000 - - - 2005 9.350 1,525,000 1,525,000 - - - 2006 9.350 1,675,000 1,675,000 - - - 2007 9.350 1,825,000 1,825,000 - - - 2008 9.350 1,975,000 1,975,000 - - - 2009 9.350 2,150,000 2,150,000 - - -

Total Series XXII issue 11,825,000 - (1,275,000) -

The Bonds were issued for the purpose of site acquisition and development, equipment acquisition, and permanent improvementsfor school buildings in the School District.

Series 1992Amount of issue - $33,000,000

Due May 1:2003 5.800 1,635,000 1,635,000 - (1,635,000) -

The Bonds were issued for the purpose of defraying the cost of acquiring, constructing, and reconstructing certain improvements toexisting school buildings, structures, facilities, and sites of the School District, including replacement of certain equipment. The proceedsof the Bonds were to be used to pay expenses of issuance of the Bonds and to establish a separate depository account designatedSchool Building and Site bonds, Series1992 Construction Fund, to be used to pay the costs of the Project.

92

Statistical and Other Information (Unaudited) Detail of Bonded Debt


Bonds

Outstanding

June 30, 2003

Current

Portion

- $ - $ 2,200,000 2,200,000 2,400,000 - 2,600,000 - 2,800,000 -

10,000,000 2,200,000

- - 1,400,000 1,400,000 1,525,000 - 1,675,000 - 1,825,000 - 1,975,000 - 2,150,000 -

10,550,000 1,400,000

- -


93

Description

Maturity

Date

Interest

Rate

(Percent)

Maturing

per Period

Bonds

Outstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 1993

Amount of issue - $79,730,000

Due May 1:2003 4.800 4,655,000$ 4,655,000$ - $ (4,655,000)$ - $ 2004 4.850 4,890,000 4,890,000 - - - 2005 4.950 5,130,000 5,130,000 - - - 2006 5.050 5,395,000 5,395,000 - - - 2007 5.125 5,680,000 5,680,000 - - - 2008 5.125 6,340,000 6,340,000 - - (2,340,000) 2009 5.125 6,645,000 6,645,000 - - (2,465,000) 2010 5.125 6,970,000 6,970,000 - - (2,595,000) 2011 5.125 5,815,000 5,815,000 - - (2,735,000) 2012 5.125 2,885,000 2,885,000 - - (2,885,000) 2013 5.125 3,040,000 3,040,000 - - (3,040,000)

Total Series 1993 issue 57,445,000 - (4,655,000) (16,060,000)

The Bonds were issued for the purposes of (i) defraying the cost of acquiring, constructing, and reconstructing certain permanentimprovements to existing school buildings, structures, facilities, and sites of the School District, including replacement of certainequipment, (ii) paying costs of issuance of the Bonds, (iii) establishing a separate depository account designated School Building and Site Improvement and Refunding bonds, Series 1993 Construction Fund, to be used solely to pay the costs of the Projects, and(iv) making a deposit to the Escrow Fund in order to advance refund prior bonds.

Series 1996AAmount of issue - $89,000,000

Due May 1:2003 5.500 1,710,000 1,710,000 - (1,710,000) - 2004 6.250 1,805,000 1,805,000 - - - 2005 6.250 1,920,000 1,920,000 - - - 2006 6.250 2,040,000 2,040,000 - - - 2007 6.500 2,165,000 2,165,000 - - - 2008 6.500 2,305,000 2,305,000 - - - 2009 6.500 2,455,000 2,455,000 - - - 2010 6.500 2,615,000 2,615,000 - - - 2011 6.500 2,785,000 2,785,000 - - -

Total Series 1996A issue 19,800,000 - (1,710,000) -

The Bonds were issued for the purposes of (i) defraying the costs of acquiring, constructing, and reconstructing new school buildings,and the acquisition of certain equipment by the School District, and (ii) paying costs of issuance of the Bonds.

Series 1998AAmount of issue - $940,000

Due May 1:2003 4.000 640,000 640,000 - (640,000) - 2004 4.100 10,000 10,000 - - - 2005 4.200 190,000 190,000 - - - 2006 4.250 50,000 50,000 - - - 2007 4.300 50,000 50,000 - - -

Total Series 1998A issue 940,000 - (640,000) -

The Bonds were issued for the purposes of defraying the cost of acquiring, constructing, and reconstructing certain permanent improvements to existing school facilities and sites, construction of new school buildings, and the acquisition of certain equipmentby the School District, and paying costs of issuance of the Bonds.

94

Statistical and Other Information (Unaudited) Detail of Bonded Debt (Continued)


Bonds

Outstanding

June 30, 2003

Current

Portion

- $ - $ 4,890,000 4,890,000 5,130,000 - 5,395,000 - 5,680,000 - 4,000,000 - 4,180,000 - 4,375,000 - 3,080,000 -

- - - -

36,730,000 4,890,000

- - 1,805,000 1,805,000 1,920,000 - 2,040,000 - 2,165,000 - 2,305,000 - 2,455,000 - 2,615,000 - 2,785,000 -

18,090,000 1,805,000

- - 10,000 10,000

190,000 - 50,000 - 50,000 -

300,000 10,000


95

Description

Maturity

Date

Interest

Rate

(Percent)

Maturing

per Period

Bonds

Outstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 1998B


Due May 1:2003 3.900 2,160,000$ 2,160,000$ - $ (2,160,000)$ - $ 2004 5.000 2,790,000 2,790,000 - - - 2005 5.000 4,220,000 4,220,000 - - - 2006 5.000 4,575,000 4,575,000 - - - 2007 5.000 4,805,000 4,805,000 - - - 2008 5.000 5,100,000 5,100,000 - - - 2009 5.000 5,355,000 5,355,000 - - - 2010 5.000 5,620,000 5,620,000 - - - 2011 5.375 5,905,000 5,905,000 - - - 2012 5.375 6,220,000 6,220,000 - - - 2013 5.375 6,555,000 6,555,000 - - - 2014 5.375 6,905,000 6,905,000 - - - 2015 5.375 7,280,000 7,280,000 - - - 2017 5.000 15,725,000 15,725,000 - - - 2021 5.000 36,450,000 36,450,000 - - - 2028 4.750 83,065,000 83,065,000 - - -

Total Series 1998B issue 202,730,000 - (2,160,000) -

The Bonds were issued for the purposes of (i) defraying the cost of acquiring, constructing, and reconstructing certain permanent improvements to existing school facilities and sites, construction of new school buildings, and the acquisition of certain equipment by the School District, and (ii) paying costs of issuance of the Bonds.

Series 1998CAmount of issue - $84,855,000

Due May 1:2003 3.900 300,000 300,000 - (300,000) - 2004 4.000 2,040,000 2,040,000 - - - 2005 4.100 2,125,000 2,125,000 - - - 2006 4.200 2,205,000 2,205,000 - - - 2007 5.000 2,300,000 2,300,000 - - - 2008 5.000 2,420,000 2,420,000 - - - 2009 5.000 2,540,000 2,540,000 - - - 2010 5.000 2,665,000 2,665,000 - - - 2011 5.250 2,800,000 2,800,000 - - - 2012 5.250 5,910,000 5,910,000 - - - 2013 5.250 3,260,000 3,260,000 - - - 2014 5.250 3,430,000 3,430,000 - - - 2015 5.250 3,610,000 3,610,000 - - - 2016 5.250 3,800,000 3,800,000 - - - 2017 5.250 4,000,000 4,000,000 - - - 2025 5.250 40,555,000 40,555,000 - - -

Total Series 1998C issue 83,960,000 - (300,000) -

The Bonds were issued for the purposes of (i) defraying the cost of advance refunding a portion of the School District's School Buildingand Site Bonds (Unlimited Tax General Obligation), Series 1992, dated July 1, 1992, in the original principal amount of $33,000,000 andits School Building and Site Improvement Bonds (Unlimited Tax General Obligation), Series 1996A, dated March 1, 1996, in the originalprincipal amount of $89,000,000 and (ii) paying costs of issuance of the Bonds.

96



Bonds

Outstanding

June 30, 2003

Current

Portion

- $ - $ 2,790,000 2,790,000 4,220,000 - 4,575,000 - 4,805,000 - 5,100,000 - 5,355,000 - 5,620,000 - 5,905,000 - 6,220,000 - 6,555,000 - 6,905,000 - 7,280,000 -

15,725,000 - 36,450,000 - 83,065,000 -

200,570,000 2,790,000

- - 2,040,000 2,040,000 2,125,000 - 2,205,000 - 2,300,000 - 2,420,000 - 2,540,000 - 2,665,000 - 2,800,000 - 5,910,000 - 3,260,000 - 3,430,000 - 3,610,000 - 3,800,000 - 4,000,000 -

40,555,000 -

83,660,000 2,040,000


97

Description

Maturity

Date

Interest

Rate

(Percent)

Maturing

per Period

Bonds

Outstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 2001A


Due May 1:2003 3.000 8,445,000$ 8,445,000$ - $ (8,445,000)$ - $ 2004 3.000 1,325,000 1,325,000 - - - 2004 5.000 7,835,000 7,835,000 - - - 2005 3.000 175,000 175,000 - - - 2005 5.000 2,870,000 2,870,000 - - - 2006 3.250 1,755,000 1,755,000 - - - 2006 5.500 1,730,000 1,730,000 - - - 2007 3.500 4,045,000 4,045,000 - - - 2008 3.500 1,600,000 1,600,000 - - - 2008 5.500 2,660,000 2,660,000 - - - 2009 3.750 285,000 285,000 - - - 2009 5.500 3,915,000 3,915,000 - - - 2010 3.900 350,000 350,000 - - - 2010 5.500 2,660,000 2,660,000 - - - 2011 4.000 550,000 550,000 - - - 2011 5.500 8,920,000 8,920,000 - - - 2012 4.000 1,000,000 1,000,000 - - - 2012 5.500 5,790,000 5,790,000 - - - 2013 4.125 300,000 300,000 - - - 2013 5.000 6,110,000 6,110,000 - - - 2014 4.250 390,000 390,000 - - - 2014 5.500 6,445,000 6,445,000 - - - 2015 5.500 17,175,000 17,175,000 - - - 2016 4.600 400,000 400,000 - - - 2016 5.500 7,185,000 7,185,000 - - - 2017 5.500 12,295,000 12,295,000 - - - 2018 5.500 11,565,000 11,565,000 - - - 2019 5.500 12,200,000 12,200,000 - - - 2020 5.500 12,875,000 12,875,000 - - - 2021 5.000 1,345,000 1,345,000 - - - 2021 5.500 12,240,000 12,240,000 - - - 2029 6.000 183,695,000 183,695,000 - - - 2031 5.125 94,160,000 94,160,000 - - -

Total Series 2001A issue 434,290,000 - (8,445,000) -

The Bonds were issued for the purpose of defraying the cost of acquiring, construction, and reconstructing certain permanent improvementsto existing school facilities and sites, acquiring new sites, constructing new school buildings, and acquiring certain equipment, includingschool buses and technology, and paying costs of issuance of the Bonds.

98



Bonds

Outstanding

June 30, 2003

Current

Portion

- $ - $ 1,325,000 1,325,000 7,835,000 7,835,000

175,000 - 2,870,000 - 1,755,000 - 1,730,000 - 4,045,000 - 1,600,000 - 2,660,000 -

285,000 - 3,915,000 -

350,000 - 2,660,000 -

550,000 - 8,920,000 - 1,000,000 - 5,790,000 -

300,000 - 6,110,000 -

390,000 - 6,445,000 -

17,175,000 - 400,000 -

7,185,000 - 12,295,000 - 11,565,000 - 12,200,000 - 12,875,000 - 1,345,000 -

12,240,000 - 183,695,000 - 94,160,000 -

425,845,000 9,160,000


99

Description

Maturity

Date

InterestRate

(Percent)

Maturing

per Period

BondsOutstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 2002A


Due May 1:2003 3.000 16,055,000$ - $ 16,055,000$ (16,055,000)$ - $ 2004 3.000 5,150,000 - 5,150,000 - - 2004 5.000 2,320,000 - 2,320,000 - - 2005 3.000 2,600,000 - 2,600,000 - - 2005 5.000 10,775,000 - 10,775,000 - - 2006 3.000 890,000 - 890,000 - - 2006 5.000 13,105,000 - 13,105,000 - - 2007 3.100 705,000 - 705,000 - - 2007 5.000 13,975,000 - 13,975,000 - - 2008 3.400 3,880,000 - 3,880,000 - - 2008 5.000 5,010,000 - 5,010,000 - - 2009 3.700 340,000 - 340,000 - - 2009 4.000 6,815,000 - 6,815,000 - - 2010 4.000 2,810,000 - 2,810,000 - - 2010 5.000 4,635,000 - 4,635,000 - - 2011 4.000 275,000 - 275,000 - - 2011 5.000 7,510,000 - 7,510,000 - - 2012 4.000 665,000 - 665,000 - - 2012 5.000 7,505,000 - 7,505,000 - - 2013 5.000 8,195,000 - 8,195,000 - - 2014 4.300 150,000 - 150,000 - - 2014 5.500 8,455,000 - 8,455,000 - - 2015 5.500 9,075,000 - 9,075,000 - - 2016 4.500 100,000 - 100,000 - - 2016 5.500 9,475,000 - 9,475,000 - - 2017 4.600 240,000 - 240,000 - - 2017 5.500 9,860,000 - 9,860,000 - - 2018 5.500 10,655,000 - 10,655,000 - - 2019 6.000 11,240,000 - 11,240,000 - - 2020 6.000 11,915,000 - 11,915,000 - - 2021 6.000 12,630,000 - 12,630,000 - - 2022 5.000 9,890,000 - 9,890,000 - - 2022 5.150 3,500,000 - 3,500,000 - - 2023 5.000 11,070,000 - 11,070,000 - - 2023 5.150 3,000,000 - 3,000,000 - - 2024 5.375 14,780,000 - 14,780,000 - - 2025 5.250 15,575,000 - 15,575,000 - - 2026 5.250 16,390,000 - 16,390,000 - - 2027 5.250 17,250,000 - 17,250,000 - - 2028 5.250 18,160,000 - 18,160,000 - - 2029 5.000 19,110,000 - 19,110,000 - - 2030 5.000 20,065,000 - 20,065,000 - - 2031 5.000 21,070,000 - 21,070,000 - - 2032 5.000 22,125,000 - 22,125,000 - -

Total Series 2002A issue - 388,995,000 (16,055,000) -

The bonds were issued for the purposes of (i) defraying the cost of acquiring, construction, and reconstructing certain permanentimprovements to existing school facilities and sites, acquiring new sites, constructing new school buildings, and acquiring certainequipment, including school buses and technology, and (ii) paying costs of issuance of the Bonds.

100

Other Supplemental Information (Continued) Schedule of Bonded Indebtedness


BondsOutstanding

June 30, 2003

Current

Portion

- $ - $ 5,150,000 5,150,000 2,320,000 2,320,000 2,600,000 -

10,775,000 - 890,000 -

13,105,000 - 705,000 -

13,975,000 - 3,880,000 - 5,010,000 -

340,000 - 6,815,000 - 2,810,000 - 4,635,000 -

275,000 - 7,510,000 -

665,000 - 7,505,000 - 8,195,000 -

150,000 - 8,455,000 - 9,075,000 -

100,000 - 9,475,000 -

240,000 - 9,860,000 -

10,655,000 - 11,240,000 - 11,915,000 - 12,630,000 - 9,890,000 - 3,500,000 -

11,070,000 - 3,000,000 -

14,780,000 - 15,575,000 - 16,390,000 - 17,250,000 - 18,160,000 - 19,110,000 - 20,065,000 - 21,070,000 - 22,125,000 -

372,940,000 7,470,000


101

Description

Maturity

Date

InterestRate

(Percent)

Maturing

per Period

BondsOutstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 2003A


Due May 1:2008 5.000 2,360,000$ - $ 2,360,000$ - $ - $ 2009 5.000 2,475,000 - 2,475,000 - - 2010 5.250 2,595,000 - 2,595,000 - - 2011 5.250 2,730,000 - 2,730,000 - - 2012 5.250 2,875,000 - 2,875,000 - - 2013 5.250 3,025,000 - 3,025,000 - -

Total Series 2001A issue - 16,060,000 - -

The bonds were issued for the purpose of refunding certain of the School District's Series 1993 bonds.

Series 2003BAmount of issue - $326,845,000

Due May 1:2004 6.000 5,500,000$ - $ 5,500,000$ - $ - $ 2005 3.000 5,825,000 - 5,825,000 - - 2006 3.000 5,995,000 - 5,995,000 - - 2007 3.664 6,180,000 - 6,180,000 - - 2008 3.910 6,410,000 - 6,410,000 - - 2009 4.520 9,515,000 - 9,515,000 - - 2010 4.272 9,740,000 - 9,740,000 - - 2011 4.759 10,160,000 - 10,160,000 - - 2012 4.625 10,640,000 - 10,640,000 - - 2013 4.858 11,130,000 - 11,130,000 - - 2014 5.233 7,475,000 - 7,475,000 - - 2015 4.808 7,865,000 - 7,865,000 - - 2016 4.796 8,240,000 - 8,240,000 - - 2017 4.982 8,640,000 - 8,640,000 - - 2018 4.791 9,070,000 - 9,070,000 - - 2019 5.000 9,500,000 - 9,500,000 - - 2020 4.998 9,980,000 - 9,980,000 - - 2021 4.926 10,475,000 - 10,475,000 - - 2022 4.968 10,990,000 - 10,990,000 - - 2023 4.788 11,540,000 - 11,540,000 - - 2024 4.967 12,090,000 - 12,090,000 - - 2025 4.936 12,695,000 - 12,695,000 - - 2026 5.000 13,320,000 - 13,320,000 - - 2027 5.000 13,985,000 - 13,985,000 - - 2028 5.000 14,685,000 - 14,685,000 - - 2029 5.000 15,420,000 - 15,420,000 - - 2030 5.000 16,190,000 - 16,190,000 - - 2031 5.000 17,000,000 - 17,000,000 - - 2032 5.000 17,850,000 - 17,850,000 - - 2033 4.953 18,740,000 - 18,740,000 - -

Total Series 2003B issue - 326,845,000 - -

The bonds were issued for the purposes of (i) defraying the cost of acquiring, construction, and reconstructing certain permanentimprovements to existing school facilities and sites, acquiring new sites, constructing new school buildings, and acquiring certainequipment, including school buses and technology, and (ii) paying costs of issuance of the bonds.

102



BondsOutstanding

June 30, 2003

Current

Portion

2,360,000$ - $ 2,475,000 - 2,595,000 - 2,730,000 - 2,875,000 - 3,025,000 -

16,060,000 -

5,500,000$ 5,500,000$ 5,825,000 - 5,995,000 - 6,180,000 - 6,410,000 - 9,515,000 - 9,740,000 -

10,160,000 - 10,640,000 - 11,130,000 - 7,475,000 - 7,865,000 - 8,240,000 - 8,640,000 - 9,070,000 - 9,500,000 - 9,980,000 -

10,475,000 - 10,990,000 - 11,540,000 - 12,090,000 - 12,695,000 - 13,320,000 - 13,985,000 - 14,685,000 - 15,420,000 - 16,190,000 - 17,000,000 - 17,850,000 - 18,740,000 -

326,845,000 5,500,000


103

Description

Maturity

Date

InterestRate

(Percent)

Maturing

per Period

BondsOutstanding

July 1, 2002

Bonds Issued

this Year

Bonds Retired

this Year

Bonds Defeased

this Year

Series 1998 (Durant)


Due May 15:2003 4.761 - $ - $ - $ - $ - $ 2004 4.761 - - - - - 2005 4.761 - - - - - 2006 4.761 3,272,962 3,272,962 - - - 2007 4.761 3,611,222 3,611,222 - - - 2008 4.761 3,984,442 3,984,442 - - - 2009 4.761 4,396,234 4,396,234 - - - 2010 4.761 4,850,585 4,850,585 - - - 2011 4.761 5,351,893 5,351,893 - - - 2012 4.761 5,905,011 5,905,011 - - - 2013 4.761 6,515,294 6,515,294 - - -

Total Series 1998 (Durant) 37,887,643 - - -

Energy ConservationAmount of issue - $21,210,000

Due:11/01/02 3.800 1,625,000 1,625,000 - (1,625,000) - 05/1/03 3.900 1,655,000 1,655,000 - (1,655,000) - 11/1/03 3.900 1,690,000 1,690,000 - - - 05/1/04 4.000 1,340,000 1,340,000 - - - 11/1/04 4.000 1,290,000 1,290,000 - - - 05/1/05 4.050 880,000 880,000 - - - 11/1/05 4.050 675,000 675,000 - - - 05/1/06 4.150 690,000 690,000 - - - 11/1/06 4.150 705,000 705,000 - - - 05/1/07 4.250 720,000 720,000 - - - 11/1/07 4.250 350,000 350,000 - - -

Total Energy Conservation 11,620,000 - (3,280,000) -

Total all issues 874,182,643$ 731,900,000$ (42,205,000)$ (16,060,000)$

104



BondsOutstanding

June 30, 2003

Current

Portion

- $ - $ - - - -

3,272,962 - 3,611,222 - 3,984,442 - 4,396,234 - 4,850,585 - 5,351,893 - 5,905,011 - 6,515,294 -

37,887,643 -

- - - -

1,690,000 1,690,000 1,340,000 1,340,000 1,290,000 -

880,000 - 675,000 - 690,000 - 705,000 - 720,000 - 350,000 -

8,340,000 3,030,000

1,547,817,643$ 40,295,000$


105

Principal Interest Principal Interest Principal Interest

2003 Nov 01 387,500$ 493,212$ 918,199$ 2004 May 01 2,200,000$ 387,500 1,400,000$ 493,213 4,890,000$ 918,199

May 15Nov 01 302,250 427,762 799,616

2005 May 01 2,400,000 302,250 1,525,000 427,763 5,130,000 799,616 May 15Nov 01 209,250 356,468 672,649

2006 May 01 2,600,000 209,250 1,675,000 356,469 5,395,000 672,649 May 15Nov 01 108,500 278,162 536,425

2007 May 01 2,800,000 108,500 1,825,000 278,163 5,680,000 536,425 May 15Nov 01 192,843 390,875

2008 May 01 1,975,000 192,844 4,000,000 390,875 May 15Nov 01 100,513 290,875

2009 May 01 2,150,000 100,513 4,180,000 290,875 May 15Nov 01 186,375

2010 May 01 4,375,000 186,375 May 15Nov 01 77,000

2011 May 01 3,080,000 77,000 May 15Nov 01

2012 May 01May 15Nov 01

2013 May 01May 15Nov 01

2014 May 01Nov 01

2015 May 01Nov 01

2016 May 01Nov 01

2017 May 01Nov 01

2018 May 01Nov 01

2019 May 01Nov 01

Series 1993$79,730,000$26,000,000

Series XXI$20,000,000Series XXII

106

Other Supplemental Information Schedule of Bond Principal and Interest


Principal Interest Principal Interest Principal Interest Principal Interest

580,719$ 6,332$ 4,972,041$ 2,147,124$ 1,805,000$ 580,719 10,000$ 6,333 2,790,000$ 4,972,041 2,040,000$ 2,147,124

524,312 6,127 4,902,291 2,106,324 1,920,000 524,313 190,000 6,128 4,220,000 4,902,291 2,125,000 2,106,324

464,312 2,137 4,796,791 2,062,761 2,040,000 464,313 50,000 2,138 4,575,000 4,796,791 2,205,000 2,062,761

400,562 1,075 4,682,416 2,016,456 2,165,000 400,563 50,000 1,075 4,805,000 4,682,416 2,300,000 2,016,456

330,200 4,562,291 1,958,956 2,305,000 330,200 5,100,000 4,562,291 2,420,000 1,958,956

255,287 4,434,791 1,898,456 2,455,000 255,288 5,355,000 4,434,791 2,540,000 1,898,456

175,500 4,300,916 1,834,956 2,615,000 175,500 5,620,000 4,300,916 2,665,000 1,834,956

90,512 4,160,416 1,768,331 2,785,000 90,513 5,905,000 4,160,416 2,800,000 1,768,331

4,001,719 1,694,831 6,220,000 4,001,719 5,910,000 1,694,831

3,834,556 1,539,694 6,555,000 3,834,556 3,260,000 1,539,694

3,658,391 1,454,119 6,905,000 3,658,391 3,430,000 1,454,119

3,472,819 1,364,081 7,280,000 3,472,819 3,610,000 1,364,081

3,277,169 1,269,319 3,277,169 3,800,000 1,269,318 3,277,169 1,169,568

15,725,000 3,277,169 4,000,000 1,169,568 2,884,044 1,064,569 2,884,044 1,064,569 2,884,044 1,064,569 2,884,044 1,064,569 2,884,044 1,064,569

$209,770,000Series 1998BSeries 1998ASeries 1996A *

$89,000,000 $940,000 $84,855,000Series 1998C


107


2020 May 01Nov 01

2021 May 01Nov 01

2022 May 01Nov 01

2023 May 01Nov 01

2024 May 01Nov 01

2025 May 01Nov 01

2026 May 01Nov 01

2027 May 01Nov 01

2028 May 01Nov 01

2029 May 01Nov 01

2030 May 01Nov 01

2031 May 01Nov 01

2032 May 01Nov 01

2033 May 01

Total interest 2,015,000$ 3,697,925$ 7,744,028$

Total principal 10,000,000$ 10,550,000$ 36,730,000$

$26,000,000 $20,000,000 $79,730,000Series XXI Series XXII Series 1993

108

Other Supplemental Information Schedule of Bond Principal and Interest (Continued)


Principal Interest Principal Interest Principal Interest Principal Interest

2,884,044$ 1,064,569$ 2,884,044 1,064,569

36,450,000$ 2,884,044 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 1,064,569 1,972,793 40,555,000$ 1,064,569 1,972,793 1,972,793 1,972,793 1,972,793 1,972,793

83,065,000 1,972,793

5,642,813$ 31,345$ 167,359,007$ 65,603,055$

18,090,000$ 300,000$ 200,570,000$ 83,660,000$

$89,000,000 $940,000 $209,770,000 $84,855,000Series 1996A * Series 1998A Series 1998B Series 1998C


109


2003 Nov 01 11,845,137$ 9,557,604$ 415,531$ 2004 May 01 9,160,000$ 11,845,138 7,470,000$ 9,557,604 415,532

May 15Nov 01 11,629,387 9,422,354 415,531

2005 May 01 3,045,000 11,629,388 13,375,000 9,422,354 415,532 May 15Nov 01 11,555,012 9,113,979 415,531

2006 May 01 3,485,000 11,555,013 13,995,000 9,113,979 415,532 May 15Nov 01 11,478,918 8,773,004 415,531

2007 May 01 4,045,000 11,478,919 14,680,000 8,773,004 415,531 May 15Nov 01 11,408,131 8,412,701 415,531

2008 May 01 4,260,000 11,408,131 8,890,000 8,412,701 2,360,000$ 415,531 May 15Nov 01 11,306,981 8,221,491 356,531

2009 May 01 4,200,000 11,306,981 7,155,000 8,221,491 2,475,000 356,531 May 15Nov 01 11,193,975 8,078,901 294,656

2010 May 01 3,010,000 11,193,975 7,445,000 8,078,901 2,595,000 294,656 May 15Nov 01 11,114,000 7,906,826 226,538

2011 May 01 9,470,000 11,114,000 7,785,000 7,906,826 2,730,000 226,538 May 15Nov 01 10,857,700 7,713,576 154,875

2012 May 01 6,790,000 10,857,700 8,170,000 7,713,576 2,875,000 154,875 May 15Nov 01 10,678,475 7,512,651 79,406

2013 May 01 6,410,000 10,678,475 8,195,000 7,512,651 3,025,000 79,406 May 15Nov 01 10,504,262 7,307,776

2014 May 01 6,835,000 10,504,263 8,605,000 7,307,776 Nov 01 10,318,737 7,072,039

2015 May 01 17,175,000 10,318,738 9,075,000 7,072,039 Nov 01 9,846,425 6,822,476

2016 May 01 7,585,000 9,846,425 9,575,000 6,822,476 Nov 01 9,639,637 6,559,664

2017 May 01 12,295,000 9,639,638 10,100,000 6,559,664 Nov 01 9,301,525 6,282,994

2018 May 01 11,565,000 9,301,525 10,655,000 6,282,994 Nov 01 8,983,488 5,989,981

2019 May 01 12,200,000 8,983,488 11,240,000 5,989,981 Nov 01 8,647,988 5,652,781

$16,060,000$388,995,000$438,365,000Series 2003ASeries 2002ASeries 2001A

110




7,860,546$ 1,690,000$ 168,757$ 5,500,000$ 7,860,546 1,340,000 135,772

- $ 3,915,688$ 7,695,546 1,290,000 108,972

5,825,000 7,695,547 880,000 83,172 - 3,915,688

7,608,171 675,000 65,352 5,995,000 7,608,171 690,000 51,684

3,272,962 3,915,688 7,518,246 705,000 37,366

6,180,000 7,518,247 720,000 22,710 3,611,222 3,577,427

7,405,015 350,000 7,438 6,410,000 7,405,015

3,984,442 3,204,207 7,279,695

9,515,000 7,279,695 4,396,234 2,792,415

7,064,657 9,740,000 7,064,658

4,850,585 2,338,065 6,856,595

10,160,000 6,856,595 5,351,893 1,836,757

6,614,832 10,640,000 6,614,833

5,905,011 1,283,638 6,368,774

11,130,000 6,368,774 6,515,294 673,356

6,098,398 7,475,000 6,098,399

5,902,832 7,865,000 5,902,833

5,713,751 8,240,000 5,713,751

5,516,176 8,640,000 5,516,177

5,300,964 9,070,000 5,300,964

5,083,682 9,500,000 5,083,683

4,846,182

$59,304,433 $21,210,000$326,845,000Energy ConservationSeries 1998 (Durant)Series 2003B


111


2020 May 01 12,875,000$ 8,647,988$ 11,915,000$ 5,652,781$ Nov 01 8,293,925 5,295,331

2021 May 01 13,585,000 8,293,925 12,630,000 5,295,331 Nov 01 7,923,700 4,916,431

2022 May 01 7,923,700 13,390,000 4,916,432 Nov 01 7,923,700 4,579,056

2023 May 01 7,923,700 14,070,000 4,579,057 Nov 01 7,923,700 4,225,056

2024 May 01 7,923,700 14,780,000 4,225,056 Nov 01 7,923,700 3,827,844

2025 May 01 7,923,700 15,575,000 3,827,844 Nov 01 7,923,700 3,419,000

2026 May 01 7,923,700 16,390,000 3,419,000 Nov 01 7,923,700 2,988,763

2027 May 01 7,923,700 17,250,000 2,988,763 Nov 01 7,923,700 2,535,950

2028 May 01 7,923,700 18,160,000 2,535,950 Nov 01 7,923,700 2,059,250

2029 May 01 183,695,000 7,923,700 19,110,000 2,059,250 Nov 01 2,412,850 1,581,500

2030 May 01 2,412,850 20,065,000 1,581,500 Nov 01 2,412,850 1,079,875

2031 May 01 94,160,000 2,412,850 21,070,000 1,079,875 Nov 01 553,125

2032 May 01 22,125,000 553,125 Nov 01

2033 May 01

Total interest 513,638,013$ 334,923,960$ 6,379,325$

Total principal 425,845,000$ 372,940,000$ 16,060,000$

$438,365,000 $388,995,000 $16,060,000Series 2001A Series 2002A Series 2003A

112




9,980,000$ 4,846,183$ 4,596,772

10,475,000 4,596,773 4,338,797

10,990,000 4,338,798 4,065,797

11,540,000 4,065,798 3,788,922

12,090,000 3,788,923 3,488,672

12,695,000 3,488,673 3,175,387

13,320,000 3,175,388 2,842,387

13,985,000 2,842,388 2,492,762

14,685,000 2,492,763 2,125,637

15,420,000 2,125,638 1,740,137

16,190,000 1,740,138 1,335,387

17,000,000 1,335,388 910,387

17,850,000 910,388 464,137

18,740,000 464,138

292,198,508$ 27,452,929$ 681,223$

326,845,000$ 37,887,643$ 8,340,000$

$326,845,000 $59,304,433 $21,210,000Series 2003B Series 1998 (Durant) Energy Conservation


113



Principal Interest Total

2003 Nov 01 1,690,000$ 39,352,702$ 41,042,702$ 2004 May 01 38,605,000 39,319,721 77,924,721

May 15 - 3,915,688 3,915,688 Nov 01 1,290,000 38,340,471 39,630,471

2005 May 01 40,635,000 38,314,677 78,949,677 May 15 - 3,915,688 3,915,688 Nov 01 675,000 37,322,413 37,997,413

2006 May 01 42,705,000 37,308,750 80,013,750 May 15 3,272,962 3,915,688 7,188,650 Nov 01 705,000 36,246,661 36,951,661

2007 May 01 45,250,000 36,232,009 81,482,009 May 15 3,611,222 3,577,427 7,188,649 Nov 01 350,000 35,083,981 35,433,981

2008 May 01 37,720,000 35,076,544 72,796,544 May 15 3,984,442 3,204,207 7,188,649 Nov 01 - 34,144,620 34,144,620

2009 May 01 40,025,000 34,144,621 74,169,621 May 15 4,396,234 2,792,415 7,188,649 Nov 01 - 33,129,936 33,129,936

2010 May 01 38,065,000 33,129,937 71,194,937 May 15 4,850,585 2,338,065 7,188,650 Nov 01 - 32,200,218 32,200,218

2011 May 01 44,715,000 32,200,219 76,915,219 May 15 5,351,893 1,836,757 7,188,650 Nov 01 - 31,037,533 31,037,533

2012 May 01 40,605,000 31,037,534 71,642,534 May 15 5,905,011 1,283,638 7,188,648 Nov 01 - 30,013,556 30,013,556

2013 May 01 38,575,000 30,013,556 68,588,556 May 15 6,515,294 673,356 7,188,651 Nov 01 - 29,022,945 29,022,945

2014 May 01 33,250,000 29,022,947 62,272,947 Nov 01 - 28,130,509 28,130,509

2015 May 01 45,005,000 28,130,511 73,135,511 Nov 01 - 26,929,140 26,929,140

2016 May 01 29,200,000 26,929,139 56,129,139 Nov 01 - 26,162,214 26,162,214

2017 May 01 50,760,000 26,162,216 76,922,216 Nov 01 - 24,834,097 24,834,097

2018 May 01 31,290,000 24,834,097 56,124,097 Nov 01 - 24,005,764 24,005,764

2019 May 01 32,940,000 24,005,765 56,945,765 Nov 01 - 23,095,564 23,095,564

Total for All Bond Issues


114



Principal Interest Total

2020 May 01 34,770,000$ 23,095,565$ 57,865,565$ Nov 01 - 22,134,641 22,134,641

2021 May 01 73,140,000 22,134,642 95,274,642 Nov 01 - 20,216,290 20,216,290

2022 May 01 24,380,000 20,216,292 44,596,292 Nov 01 - 19,605,915 19,605,915

2023 May 01 25,610,000 19,605,917 45,215,917 Nov 01 - 18,975,040 18,975,040

2024 May 01 26,870,000 18,975,041 45,845,041 Nov 01 - 18,277,578 18,277,578

2025 May 01 68,825,000 18,277,579 87,102,579 Nov 01 - 16,490,880 16,490,880

2026 May 01 29,710,000 16,490,881 46,200,881 Nov 01 - 15,727,643 15,727,643

2027 May 01 31,235,000 15,727,644 46,962,644 Nov 01 - 14,925,205 14,925,205

2028 May 01 115,910,000 14,925,206 130,835,206 Nov 01 - 12,108,587 12,108,587

2029 May 01 218,225,000 12,108,588 230,333,588 Nov 01 - 5,734,487 5,734,487

2030 May 01 36,255,000 5,734,488 41,989,488 Nov 01 - 4,828,112 4,828,112

2031 May 01 132,230,000 4,828,113 137,058,113 Nov 01 - 1,463,512 1,463,512

2032 May 01 39,975,000 1,463,513 41,438,513 Nov 01 - 464,137 464,137

2033 May 01 18,740,000 464,138 19,204,138

Total interest 1,427,367,132$

Total principal 1,547,817,643$ 2,975,184,775$

Total for All Bond Issues

Statistical and Other Information Section (Unaudited)


115

Tax Year

Total 2002 2001 2000

Estimated actual value of taxable property 24,358,946,914$ 21,951,604,580$ 19,648,594,740$

State Equalized Valuation/Taxable Value of

property assessed in the the City of Detroit 7,976,048,523$ 7,639,805,282$ 7,204,381,124$

Nonhomestead valuation 4,886,489,640$ 4,780,548,412$ 4,575,423,804$

Tax rate (mills):General Fund 18.00 18.00 18.00 School Building and Site Bonds Fund 12.99 8.37 7.00 Deficit Funding Bonds Fund - - -

Judgment Levy Fund 0.20 2.13 -

Total tax rate (mills) 31.19 28.50 25.00

General Fund:Prior years:

Levy - $ 86,049,872$ 82,357,628$ Collections, write-offs, and adjustments - (74,658,644) (74,906,648)

July 1, 2002 tax receivable 37,889,016 - 11,391,228 7,450,980

Current year:Levy 87,956,813 87,956,813 - - Collections, write-offs, and adjustments (87,102,017) (70,396,320) (3,526,315) (3,893,960)

June 30, 2003 tax receivable 38,743,812$ 17,560,493$ 7,864,913$ 3,557,020$

School Building and Site Bonds Fund:Prior years:

Levy - $ 63,945,170$ 50,430,668$ Collections, write-offs, and adjustments - (55,480,148) (45,868,153)

July 1, 2002 tax receivable 19,096,507$ - 8,465,022 4,562,515

Current year:Levy - Regular 103,608,870 103,608,870 - - Collections, write-offs, and adjustments (93,166,665) (87,646,871) (2,620,466) (1,005,495)

June 30, 2003 tax receivable 29,538,712$ 15,961,999$ 5,844,556$ 3,557,020$

Deficit Funding Bonds Fund:Prior years:

Levy - $ - $ - $ Collections, write-offs, and adjustments - - -

July 1, 2002 tax receivable 1,405,986$ - - -

Current year:Levy - Regular - - - - Collections, write-offs, and adjustments (1,405,986) - - -

June 30, 2003 tax receivable - $ - $ - $ - $

Judgment Levy Fund:Prior years:

Levy - $ 16,272,785$ - $ Collections, write-offs, and adjustments - (14,118,604) -

July 1, 2002 tax receivable 2,154,181$ - 2,154,181 -

Current year:Levy - Regular 1,575,209 1,575,200 - - Collections, write-offs, and adjustments (1,961,608) (1,353,478) (608,130) -

June 30, 2003 tax receivable 1,767,782$ 221,731$ 1,546,051$ - $

116

Statistical and Other Information (Unaudited) Summary of Property Tax Data


1999 1998 1997 1996 1995 1994

17,256,887,876$ 15,133,571,800$ 13,910,430,300$ 12,774,419,760$ 11,824,374,100$ 11,791,552,580$

6,856,681,901$ 6,631,616,310$ 6,450,576,199$ 6,147,617,878$ 5,887,323,624$ 5,815,411,585$

4,379,265,443$ 4,241,051,460$ 4,109,637,345$ 3,920,774,022$ 3,707,212,591$ 3,770,014,444$

18.00 18.00 18.00 18.00 18.00 18.00 5.90 4.96 5.54 5.30 5.00 2.62

- 1.49 2.05 2.20 2.04 2.04

- - - - - -

23.90 24.45 25.59 25.50 25.04 22.66

78,826,777$ 83,359,074$ 75,039,414$ 70,220,814$ 66,729,828$ 67,860,260$ (74,972,033) (80,480,313) (73,218,600) (68,820,168) (65,648,408) (66,885,796)

3,854,744 2,878,761 1,820,814 1,400,646 1,081,420 974,464

- - - - - - (796,557) (635,225) (337,997) (198,658) (155,082) (125,941)

3,058,187$ 2,243,536$ 1,482,814$ 1,201,988$ 926,338$ 848,523$

35,000,344$ 27,494,377$ 35,736,192$ 32,582,375$ 29,436,618$ 15,446,934$ (33,022,064) (26,544,873) (34,869,062) (31,932,477) (28,959,570) (15,225,118)

1,978,280 949,504 867,130 649,898 477,048 221,816

- - - - - - (408,799) (209,517) (160,966) (92,177) (68,412) (28,668)

1,569,481$ 739,987$ 706,164$ 557,721$ 408,636$ 193,148$

- $ 8,259,399$ 13,223,681$ 13,524,759$ 12,010,140$ 12,027,384$ - (7,974,165) (12,902,812) (13,254,990) (11,815,504) (11,854,672)

- 285,234 320,869 269,769 194,636 172,712

- - - - - - - (285,234) (320,869) (269,769) (194,636) (172,712)

- $ - $ - $ - $ - $ - $

- $ - $ - $ - $ - $ - $ - - - - - -

- - - - - -

- - - - - - - - - - - -

- $ - $ - $ - $ - $ - $

Tax Year


117

Statistical and Other Information (Unaudited) Summary of Property Tax Data (Continued)


1993 1992

Estimated actual value of taxable property 11,630,823,170$ 11,408,251,760$

State Equalized Valuation/Taxable Value of

property assessed in the the City of Detroit 5,815,411,585$ 5,704,125,880$

Nonhomestead valuation - $ - $

Tax rate (mills):General Fund 41.08 40.90 School Building and Site Bonds Fund 4.80 6.00 Deficit Funding Bonds Fund 1.00 1.50

Judgment Levy Fund - -

Total tax rate (mills) 46.88 48.40

General Fund:Prior years:

Levy 235,175,244$ 229,648,108$ Collections, write-offs, and adjustments (232,135,748) (227,056,956)

July 1, 2002 tax receivable 3,039,496 2,591,152

Current year:Levy - - Collections, write-offs, and adjustments (1,082,698) (1,197,276)

June 30, 2003 tax receivable 1,956,798$ 1,393,876$

School Building and Site Bonds Fund:Prior years:


July 1, 2002 tax receivable 360,796 417,254

Current year:Levy - Regular - - Collections, write-offs, and adjustments (128,519) (192,798)

June 30, 2003 tax receivable 232,277$ 224,456$

Deficit Funding Bonds Fund:Prior years:


July 1, 2002 tax receivable 75,136 104,313

Current year:Levy - Regular - - Collections, write-offs, and adjustments (26,764) (48,199)

June 30, 2003 tax receivable 48,372$ 56,114$

Judgment Levy Fund:Prior years:

Levy - $ - $ Collections, write-offs, and adjustments - -

July 1, 2002 tax receivable - -

Current year:Levy - Regular - - Collections, write-offs, and adjustments - -

June 30, 2003 tax receivable - $ - $

Tax Year


118

Statistical and Other Information (Unaudited) Ten-year Summary of Property Tax Rates


Fiscal Year

School

Operating School Debt

Judgment

Levy

State

Education

Tax Library

City of

Detroit

Wayne

County

Wayne

Regional

Education

Service

Agency

Wayne

County

Community

College Total

1994 40.4400 5.8000 - 0.0000 2.6400 30.3790 7.9000 2.0000 1.3700 90.5290

1995 18.0000 4.6600 - 6.0000 2.6400 30.8270 7.9200 2.0000 1.2800 73.3270

1996 18.0000 7.0400 - 6.0000 2.6400 31.5060 7.9200 2.0000 1.2800 76.3860

1997 18.0000 7.5000 - 6.0000 2.6400 31.2830 8.1530 1.9970 1.2020 76.7750

1998 18.0000 7.5900 - 6.0000 2.6400 31.2380 8.1530 2.0000 1.1910 76.8120

1999 18.0000 6.4500 - 6.0000 2.6400 33.8150 8.1700 2.0000 1.1500 78.2250

2000 18.0000 5.9000 - 6.0000 2.6400 31.0950 8.1284 1.9914 1.0190 74.7738

2001 18.0000 7.0000 - 6.0000 3.6331 31.6783 8.0776 1.9789 1.0000 77.3679

2002 18.0000 8.3700 2.1300 6.0000 3.6331 31.9000 8.0650 1.9750 2.5000 82.5731

2003 18.0000 12.9900 0.2000 6.0000 3.6331 30.8780 8.0390 3.4643 2.4862 85.6906

Source: City of Detroit Finance Department


119

Statistical and Other Information (Unaudited) Assessed Valuation Data - Property Type


Type of PropertyAssessed Value at

December 31, 2001*

Percent of Total Real Property

Percent of Total Roll

Commercial property 1,427,414,102$ 22.93% 17.90%Industrial property 601,063,595$ 9.65% 7.54%Residential property 4,197,587,616$ 67.42% 52.63%

Total real property 6,226,065,313$ 100.00% 78.07%

Personal property 1,749,983,210$ 21.93%

Total property 7,976,048,523$ 100.00%

* The December 31, 2001 accessed valuations, are used for the 2002 tax year levy, which is the source of revenue for the 2003 School District's fiscal year. Therefore, this is the latest information available.


120

Statistical and Other Information (Unaudited) Assessed Valuation Data - Ten Largest Taxpayers


Principal Taxpayers Real Property Personal Property Total Percent of Total

DaimlerChrysler Corporation 134,499,586$ 884,443,060$ 1,018,942,646$ 12.76%DTE: Edison 52,250,431$ 298,707,610$ 350,958,041$ 4.40%General Motors Riverfront Holdings 190,801,825$ 153,084,940$ 343,886,765$ 4.33%DTE: Michcon 15,873,293$ 164,496,620$ 180,369,913$ 2.26%One Detroit Center 43,955,196$ 104,670$ 44,059,866$ 0.55%Kewadin Greektown Casino 30,163,337$ 9,665,380$ 39,828,717$ 0.50%MGM Grand 30,008,150$ 9,328,130$ 39,336,280$ 0.50%Detroit Entertainment Motor City Casino 15,680,029$ 16,095,570$ 31,775,599$ 0.40%Flatbrick Detroit 30,350,000$ 6,920$ 30,356,920$ 0.38%Balance of Detroit City Valuations 5,682,483,466$ 214,050,310$ 5,896,533,776$ 73.92%

Total 6,226,065,313$ 1,749,983,210$ 7,976,048,523$ 100.00%

* The December 31, 2001 valuations, used for the 2002 tax year levy, are the basisof the School District's fiscal year revenue.

Assessed Valuation at December 31, 2001*

Source: City of Detroit Finance Department, Assessments Division


121

Statistical and Other Information (Unaudited) Construction and Property Values


Fiscal Year

No. of

Permits Value (millions) No. of Permits Value (millions)

No. of

Permits Value (millions) No. of Permits Value (millions)

1993 43 11.90$ 311 152$ 1,911 22$ 585 90$ 1994 51 22.10 313 52.6 1,649 16.3 590 108.4 1995 84 29.42 364 169.6 1,672 17.7 814 163.9 1996 53 17.40 313 237.9 2,119 37.7 685 255.5 1997 69 7.99 370 223.1 3,416 91.5 890 253.5 1998 90 33.32 343 256.2 4,093 77.0 815 431.9 1999 129 47.00 370 287.6 4,726 53.5 823 391.7 2000 140 29.78 331 475.4 5,593 91.2 864 592.4 2001 116 34.31 292 336.6 5,126 122.9 884 575.3 2002 84 10.63 340 385.8 5,087 75.9 1,053 622.2

Source: City of Detroit Department of Buildings and Safety Engineering

This schedule has been changed from the previous year to reflect the change from calendar year to fiscal year to be consistent with the City ofDetroit source data.

Aggregate Property Value by Category

SEV Taxable

Fiscal Year

Commercial and

Industrial Residential Total

Commercial and

Industrial Residential Total

1994 1,460,638,705$ 3,094,029,920$ 4,554,668,625$ 1,460,638,705$ 3,094,029,920$ 4,554,668,625$ 1995 1,455,850,850 3,109,589,050 4,565,439,900 1,455,850,850 3,109,589,050 4,565,439,900 1996 1,502,521,950 3,128,599,950 4,631,121,900 1,487,622,131 3,118,636,343 4,606,258,474 1997 1,590,010,250 3,353,216,350 4,943,226,600 1,558,602,704 3,145,031,894 4,703,634,598 1998 1,682,952,850 3,668,921,700 5,351,874,550 1,609,751,447 3,237,484,252 4,847,235,699 1999 1,847,303,951 4,092,896,600 5,940,200,551 1,677,497,435 3,327,533,525 5,005,030,960 2000 2,007,416,628 4,983,545,650 6,990,962,278 1,779,546,264 3,439,653,975 5,219,200,239 2001 2,182,054,100 5,924,124,350 8,106,178,450 1,881,972,270 3,604,289,934 5,486,262,204 2002 2,404,326,050 6,915,038,250 9,319,364,300 2,058,034,175 3,925,333,117 5,983,367,292

Annual Construction by Category

Non-Residential

Alterations/Additions

Residential Non-Residential

New Construction

Residential


122

Statistical and Other Information (Unaudited) Ten-year Comparison of Debt Service Funds to

General Fund Expenditures and Other Uses Year Ended June 30, 2003

Total Expendituresand Other Uses

Fiscal YearDebt Service

FundsGeneral

Fund

1994 48,578,115$ * 1,142,478,765$ ** 4.25

1995 46,050,917 1,240,484,828 ** 3.71

1996 45,890,550 1,357,565,784 ** 3.38

1997 51,147,305 1,313,296,268 ** 3.89

1998 51,625,860 1,328,502,459 ** 3.89

1999 66,783,644 1,424,344,728 ** 4.69

2000 55,411,883 1,478,743,301 ** 3.75

2001 39,860,055 1,491,006,820 2.67

2002 70,970,340 1,584,054,314 4.48

2003 94,153,642 1,631,576,025 5.77

* Amount does not include payment to refunding bond escrow agent.** Includes Food Services and Athletic Fund expenditures

Ratio of DebtService to

General FundExpenditures and

Other Uses


123

Statistical and Other Information (Unaudited) Ten-year Comparison of Bonded Debt to

SEV/Taxable Value and Population Year Ended June 30, 2003

Fiscal Year Bonded Debt Tax Year

State Equalized Valuation/Taxable

Value*

Percent ofBonded Debt

to StateEqualizedValuation/

Taxable Value PopulationPer Capita

Bonded Debt

1994 294,293,898$ 1993 5,815,411,585$ 5.06% 1,011,977 291

1995 267,099,422 1994 5,895,776,290 4.53% 1,008,430 265

1996 325,718,700 1995 5,887,332,624 5.53% 1,003,701 325

1997 295,442,900 1996 6,147,617,879 4.81% 995,233 297

1998 262,127,600 1997 6,450,576,199 4.06% 975,477 269

1999 510,705,076 1998 6,631,616,310 7.70% 967,360 528

2000 478,006,512 1999 6,856,681,901 6.97% 965,084 495

2001 459,382,580 2000 7,204,381,125 6.38% 951,270 483

2002 874,182,643 2001 7,639,805,282 11.44% 931,413 939

2003 1,547,817,643 2002 7,976,048,000 19.41% 921,312 1,680

* State Equalized Value/Taxable Values for a tax year are valuations as of December 31 of the previous year.

Sources: City of Detroit Assessor's Office, U.S. Census Bureau.


124

2003 2002 2001 2000

RevenuesLocal sources 135,938,289$ 149,442,586$ - $ - $ State sources 1,191,449,831 1,204,706,629 - - Federal sources 206,786,862 199,031,889 - - General operations - - 1,194,787,276 1,212,541,532 Special program operations - - 255,221,129 218,468,270 Auxiliary operations - - 881,474 37,102,162

Other Financing SourcesNote proceeds - - - - Transfers in 59,376,611 53,667,403 4,578,791 - Proceeds from sale of capital assets 9,071,440 - - -

Capital lease acquisition - - - -

Total revenues and other financing

sources 1,602,623,033$ 1,606,848,507$ 1,455,468,670$ 1,468,111,964$

ExpendituresInstruction 891,894,493$ 875,700,585$ 698,251,247$ 537,667,895$ Special program operations - - 269,979,428 171,554,877 Supporting services 651,198,490 626,045,607 516,718,280 427,692,759 Auxiliary operations - - 999,459 34,606,544 Community services 5,790,337 5,205,218 - - Other expenditures 935,463 - 2,988,144 282,249,591 Principal retirement 3,280,000 3,449,640 - - Payment of interest 555,141 617,178 - - Capital outlay 17,764,439 16,562,955 - 24,971,635

Other Uses - Transfers out 60,157,662 56,473,131 2,070,262 -

Total expenditures and

other uses 1,631,576,025$ 1,584,054,314$ 1,491,006,820$ 1,478,743,301$

Percent Change in Expenditures 3.00% 6.24% 0.83% 3.82%

Student Enrollment 157,003 159,694 162,693 168,213

Expenditures per Student 10,392$ 9,919$ 9,165$ 8,791$

Percent Change in Expenditures Per Student 4.77% 8.24% 4.25% 7.30%

Notes:Prior to 2001, auxiliary operations included Food Service and Athletics.In 2001, capital outlay was included as a component of other expenditure groups and was not broken out separately.In 2002, expenditure and revenue classifications were modified to conform with GASB No. 34.

125

Statistical and Other Information (Unaudited) Ten-year Summary of General Fund

Revenue and Expenditures Year Ended June 30, 2003

1999 1998 1997 1996 1995 1994

- $ - $ - $ - $ - $ - $ - - - - - - - - - - - -

1,185,131,779 1,145,958,397 1,102,696,745 1,095,822,978 1,075,258,161 944,878,398 221,178,900 213,762,637 219,852,486 195,046,806 121,119,177 141,631,833

35,134,044 36,347,857 36,069,451 33,724,815 34,924,172 30,565,524

2,182,724 - - 7,180,120 - 3,030,422 - - - - - - - - - - - -

2,613,195 - - - - -

1,446,240,642$ 1,396,068,891$ 1,358,618,682$ 1,331,774,719$ 1,231,301,510$ 1,120,106,177$

508,180,769$ 467,509,867$ 457,263,214$ 483,432,263$ 576,843,132$ 536,701,872$ 174,481,214 169,495,717 169,301,905 164,731,030 417,625,780 374,221,979 352,132,566 372,800,759 355,649,270 357,053,713

33,237,398 31,764,690 31,553,702 31,425,740 30,975,522 33,785,068 - - - - - -

261,915,317 260,085,839 278,241,439 281,996,529 254,566,644 200,242,723 - - - - - - - - - - - -

17,362,491 13,881,097 13,312,662 11,893,677 11,324,972 3,280,491

11,541,759 11,543,270 11,490,780 11,285,786 11,125,288 11,414,898

1,424,344,728$ 1,328,502,459$ 1,313,296,268$ 1,357,565,784$ 1,240,484,828$ 1,142,478,765$

7.21% 1.16% (3.26%) 9.44% 8.58% 11.27%

173,848 173,871 173,080 169,996 167,551 167,132

8,193$ 7,641$ 7,588$ 7,986$ 7,404$ 6,836$

7.23% 0.70% (4.98%) 7.86% 8.31% 21.51%


126

Statistical and Other Information (Unaudited) Ten-year Comparison of Unreserved Fund

Balance (Deficit) to Expenditures and Other Uses Year Ended June 30, 2003

Fiscal Year

UndesignatedFund Balance

(Deficit)

Expendituresand

Other Uses

Fund Balance(Deficit) as a

Percentage ofExpenditures

andOther Uses

1994 - $ 1,142,478,765$ 0.00

1995 - 1,240,484,828 0.00

1996 (19,825,406) 1,357,565,784 (1.46)

1997 - 1,313,296,268 0.00

1998 - 1,328,502,459 0.00

1999 - 1,424,344,728 0.00

2000 30,280,114 1,478,743,301 2.05

2001 22,671,885 1,491,006,820 1.52

2002 62,396,978 1,584,054,314 3.94

2003 28,819,960 1,631,576,025 1.77


127

Statistical and Other Information (Unaudited) Schedule Direct and Overlapping Debt


Bonded Indebtedness Dated DateOriginal Principal

AmountPrincipal Amount

Outstanding

School District Direct DebtBuilding & Site Bonds, Series 1987 08/01/87 26,000,000$ 10,000,000$ Building & Site Bonds, Series 1988 09/01/88 20,000,000 10,550,000 Building & Site & Refunding Bonds, Series 1993 10/01/93 79,730,000 36,730,000 Building & Site Bonds, Series 1996A 03/01/96 89,000,000 18,090,000 Building & Site Bonds, Series 1998A 11/01/98 940,000 300,000 Building & Site Bonds, Series 1998B 11/01/98 209,770,000 200,570,000 Building & Site & Refunding Bonds, Series 1998C 11/01/98 84,855,000 83,660,000 Durant Bonds, Series 1998* 11/24/98 59,304,433 37,887,643 Energy Conservation Bonds, Series 1999* 03/10/99 21,210,000 8,340,000 Building & Site Bonds, Series 2001A 10/01/01 438,365,000 425,845,000 Building & Site Bonds, Series 2002A 10/29/02 388,995,000 372,940,000 Building & Site Bonds, Series 2003A 10/23/02 16,060,000 16,060,000 Building & Site Bonds, Series 2003B 04/23/03 326,845,000 326,845,000

Direct bonded indebtedness 1,761,074,433$ 1,547,817,643$

*Not qualified for participation in Michigan School Bond Loan Fund

Source: The School District

Overlapping General Obligation Bonded Indebtedness

100.00% of City of Detroit 1,190,485,000$ 19.03% of County of Wayne 22,366,847 18.77% of Intermediate School District - 30.19% of Wayne County Community College 25,380,733

Total overlapping debt 1,238,232,580$

Source: Municipal Advisory Council of Michigan


128

Statistical and Other Information (Unaudited) Schedule of Legal Debt Margin


Summary of Bonded Indebtedness2003 Actual Valuation (True Cash Value) 24,096,654,000$ 2003 SEV (50% of True Cash Value) 12,048,327,000$ 2003 Taxable Value 7,976,048,000$ Direct Bonded Indebtedness 1,547,817,643$ Percentage of Direct Bonded Indebtedness to Actual Valuation 6.42%Percentage of Direct Bonded Indebtedness to Taxable Valuation 19.41%Population census (calendar 2002) 921,312 Per Capita Direct Bonded Indebtedness 1,680$ Overlapping Bonded Indebtedness 1,238,232,580$ Combined Direct and Overlapping Bonded Indebtedness 2,786,050,223$ Percentage of Direct and Overlapping Bonded Indebtedness to Actual Valuation 11.56%Percentage of Direct and Overlapping Bonded Indebtedness to Taxable Value 34.93%Per Capita Direct and Overlapping Bonded Indebtedness 3,024$

Source: City of Detroit Finance Department

Bonded Debt Limit

The bonded debt limit of the School District is equal to 15 percent of its taxable value (the "Bonded Debt Limit"). Thislimit is calculated by the School District to be $1,196,407,200, based on the taxable value for the fiscal year endedJune 30, 2003. The Bonded Debt Limit does not include deficit bonds, school bus purchase notes, and bondsqualified for participation in the Michigan School Bond Loan Fund, a program established pursuant to theprovisions of Section 16 ("qualified bonds"). The School District's only bonded indebtedness subject to the BondedDebt Limit is its Energy Conservation Bonds, Series 1999 in the outstanding principal amount of $8,340,000.


129

Statistical and Other Information (Unaudited) Schedule of Investments


Fund Interest Date of Date of CarryingType of Investment Group Rate Purchase Maturity Value

Govenmental FundsMoney Market (1) General Various N/A N/A 129,467,633$ Money Market (4) General 1.57 8/1/2001 N/A 1,030,138 Repurchase Agreement (2) General 1.20-1.80 4/20/2003 4/20/2004 569,292 Repurchase Agreement (2) General 0.9 6/26/2002 7/2/2003 1,434,350 Certificate of Deposit (3) General 2.52-2.94 12/4/2002 12/4/2003 1,304,593 Commercial Paper - Atlantis One Funding (1) General 1.30 6/30/2003 7/1/2003 4,999,820 Commercial Paper - UBS Financial Del LLC (1) General 1.31 6/30/2003 7/1/2003 7,149,740 Money Market (1) Debt Service Various N/A N/A 6,162,513 Money Market (1) Capital Projects Various N/A N/A 557,836,713 Commercial Paper - Atlantis One Funding (1) Capital Projects 1.30 6/30/2003 7/1/2003 9,999,638 Commercial Paper - Beta Fin Inc (1) Capital Projects 1.33 6/30/2003 7/1/2003 19,999,261 Commercial Paper - National Rural Utilities Coop (1) Capital Projects 1.35 6/30/2003 7/1/2003 19,774,258 Commercial Paper - Park Granada LLC (1) Capital Projects 1.33 6/30/2003 7/1/2003 17,982,180 Commercial Paper - UBS Financial Del LLC (1) Capital Projects 1.31 6/30/2003 7/1/2003 35,098,724 Commercial Paper - Amstel Funding (5) Capital Projects 1.27 4/22/2003 10/22/2003 249,003 Commercial Paper - Atlantis One Funding (5) Capital Projects 1.14 3/10/2003 8/1/2003 249,754 Commercial Paper - Beethoven Funding (5) Capital Projects 1.06 6/20/2003 7/18/2003 249,875 Commercial Paper - Beethoven Funding (5) Capital Projects 1.05 6/18/2003 9/9/2003 249,489 Commercial Paper - CATDA (5) Capital Projects 1.22 4/2/2003 9/24/2003 199,423 Commercial Paper - CATDA (5) Capital Projects 1.07 6/10/2003 11/12/2003 199,203 Commercial Paper - Clipper Rec. (5) Capital Projects 1.26 4/21/2003 7/31/2003 249,737 Commercial Paper - Coca-Cola Corp. (5) Capital Projects 1.21 4/14/2003 8/1/2003 199,791 Commercial Paper - Dealers Cap Account. (5) Capital Projects 1.35 6/30/2003 7/1/2003 894,000 Commercial Paper - Dealers Cap Account (5) Capital Projects 1.26 5/9/2003 8/5/2003 249,693 Commercial Paper - Dealers Cap Account (5) Capital Projects 1.08 6/10/2003 11/26/2003 99,556 Commercial Paper - Eminent Funding (5) Capital Projects 1.26 4/7/2003 7/7/2003 249,947 Commercial Paper - Eminent Funding (5) Capital Projects 1.06 6/13/2003 8/12/2003 249,690 Commercial Paper - Eminent Funding (5) Capital Projects 1.00 6/24/2003 8/20/2003 249,652 Commercial Paper - Galleon Capital (5) Capital Projects 1.21 5/1/2003 8/8/2003 199,744 Commercial Paper - GE Capital Co. (5) Capital Projects 1.25 3/4/2003 7/1/2003 187,000 Commercial Paper - Quincy Capital Corp. (5) Capital Projects 1.05 6/30/2003 7/30/2003 249,788 Commercial Paper - Sydney Capital Corp. (5) Capital Projects 1.26 4/16/2003 7/15/2003 249,876 Commercial Paper - Sydney Capital Corp. (5) Capital Projects 1.05 6/10/2003 12/10/2003 241,925 Commercial Paper - Three Rivers Funding Corp. (5) Capital Projects 1.05 6/18/2003 7/16/2003 249,890 Bonds - Federal Farm Cr Bks Cons (1) Capital Projects 2.40 7/26/2002 1/27/2004 20,121,353 Bonds - Federal Home Loan Banks (1) Capital Projects 5.375 1/5/2001 1/5/2004 20,921,444 Bonds - Federal Home Loan Banks (1) Capital Projects 1.240 4/2/2003 4/1/2004 8,999,613 Bonds - Home Loan Banks (1) Capital Projects 1.350 5/19/2003 6/9/2004 15,000,000 Bonds - Federal Home Loan Mtg. Corp. (1) Capital Projects 3.250 1/14/2002 1/15/2004 14,588,731 Bonds - Federal National Mtg. Assn. (1) Capital Projects 1.36 1/30/2003 1/9/2004 9,930,426 Government - Dreyfus Government (5) Capital Projects 0.57 N/A N/A 744,216

Total Governmental Funds 908,331,672$

(1) Held by Bank One(2) Held by First Independence(3) Held by Health One Credit Union(4) Held by Michigan Liquid Asset Fund Plus(5) Held by Standard Federal Bank


130

Statistical and Other Information (Unaudited) Schedule of Investments (Continued)


Fund Interest Date of Date of CarryingType of Investment Group Rate Purchase Maturity Value

Fiduciary Funds - Money Market (1) Fiduciary Various N/A N/A 516,600$

(1) Held by Bank One(2) Held by First Independence(3) Held by Health One Credit Union(4) Held by Michigan Liquid Asset Fund Plus(5) Held by Standard Federal Bank


131

Statistical and Other Information (Unaudited) Schedule of Major Insurance Coverage


Policy Coverage Company/Policy Number Policy Period Details of Coverage

Comm. General Liability Western World - Scottsdale 10/0/02-10/01/03 $1,000,000 each occurance; $2,000,000 gen. aggregate;

BCS0004251 $2,000,000 product & operations aggregate; $1,000,000

personal & advertising injury; $100,000 damage to rented

premises, subject of $5,000 deductible. For

Barsamian, Kennedy, SCB, CDC, Willis, Canfield, Fisher

Bldg. and Albert Kahn Bldg.

Auto Coverage Service Fleet Citizens 07/01/02-07/01/03 $1,000,000 combined single limit; $1,000,000 uninsured

CA007667708 motorist. Deductible $500.00 collission and $250.00 other

than collission. For Service Fleet.

Excess Auto - Bus & Service GENSTAR 07/16/02-0716/03 Excess Auto Liability

Fleet IXG369326

EDP Chubb 07/01/02-07/01/03 Computer Equipment Service

3561797MB

Inland Marine Citizens 07/01/02-07/01/03 Other Equipment Service

IMC0071037

Primary Bus Fleet Michigan Mutual 07/16/02-07/16/03 Bus Fleet

Liability CA1133297

Bus Physical Citizens 07/16/02-07/16/03 Bus Fleet

Damage CAOO76673

Building, Contents, Chubb 11/12/02-11/12/03 Children's Museum

and Liability 35383907

Excess Liability Chubb 11/12/02-11/12/03 Children's Museum

79792758

Property Citizens 11/09/02-11/09/03 Burt Shuly & Brarsamian

SFC036137 School

Catastrophic Athletic Mutual of Omaha 08/01/02-08/01/03 Aggregate limit $5,000,000. Lump-sum payment $100,000

Benefit payment amt. $40,000 yr.; Maximum benefit period

$50,000; Maximum benefit period 10 yrs; Accidental Death

$10,000; Accidental Dismemberment $20,000; Covered

Accidental Deductible $25,000.


132

Statistical and Other Information (Unaudited) Schedule of Major Insurance Coverage (Continued)


Policy Coverage Company/Policy Number Policy Period Details of Coverage

Aircraft Hull & Liability Old Republic Insurance 10/29/02-10/29/03 Liability coverages bodily injury, including passengers

and property damage; $1,000,000 each occurrence.

Passenger liability limited to; $100,000 expenses for

medical services $5,000. For Davis Aerospace Technical

High School.

Property Coverage Hartford Insurance 08/29/02-08/29/03 Specified location limits for buildings and business personal

Schools UUM_P6127 property; extra expense $1,000,000. Employees Personal

Effects limits $50,000 $25,000 ea. Fine Arts limits

$50,000 $10,000 ea. Combined Add Protection $250,000

Deductible $25,000.

Property - FEMA Undrs@Lloyds 04/02/03-04/02/04 Locations

UUM_P6127 Lessenger School

Hosmer School

Dexter Career

Burrough MS

Hamilton School

Turner Elementary

A.L. Holmes

Goodale School

Glazer School

Primary Comm Fire Policy Interstate Indemnity 11/01/02-11/01/03 Property policy - schools - warehouse

50002234 Nursing Medical/Malpractice

General Liability Western World 11/01/02-11/01/03 Excess property for above

35874936 Rehab Program

Source: Office of Risk Management


133

Statistical and Other Information (Unaudited) Summary of Buildings and Sites


School EnrollmentExisting Capacity

Planned Capacity Existing Sq. Ft. Planned Sq. Ft.

Elementary SchoolsAcademy Americas Elementary 673 695 695 200,000 200,000Angell Primary Elementary 52 - - - - Angelou Elementary 352 - - - - Arts Academy 133 - - - - Atkinson Elementary 388 360 360 41,516 41,516B.Jordan Academy (Hampton ES/MS) 688 140 140 172,450 172,450Bagley Elementary 533 540 540 60,638 60,638Barton Elementary 490 360 360 38,848 38,848Beard Early Childhood Center 81 80 80 32,260 32,260Beard Elementary 753 560 560 85,000 85,000Beckham Elem. (old Goodale Elem.) 600 - - - - Bellevue Elementary 184 225 225 53,703 53,703Bennett Elementary 583 515 515 63,322 63,322Berry Elementary 216 - - - - Bessy Park Elementary 729 560 560 95,000 95,000Bethune Elementary - - - - - Biddle Elementary 241 225 225 39,800 39,800Birney Elementary 309 245 245 55,001 55,001Bow Elementary 542 470 470 53,250 53,250Brady Elementary 461 290 290 82,852 82,852Brewer Elementary 778 360 360 57,894 57,894Bunche Elementary 235 470 470 56,488 56,488Burns Elementary 620 495 495 72,704 72,704Burt Elementary 424 245 245 54,887 54,887Campbell Elementary 295 270 270 51,026 51,026Carleton Elementary 700 540 540 48,312 48,312Carstens Elementary 478 585 585 82,536 82,536Chandler Elementary 324 270 270 46,433 46,433Charles Wright Academy (old Taft) 537 560 560 - 95,000Chrysler Elementary 178 180 180 18,983 18,983Clark Elementary 585 470 470 71,916 71,916Clinton Elementary 449 380 380 62,740 62,740Cooke Elementary 372 405 405 45,184 45,184Coolidge Elementary 685 675 675 57,528 57,528Cooper Elementary 394 765 765 102,352 102,352Courville Elementary 762 675 675 126,136 126,136Crary Elementary 492 405 405 57,104 57,104Cultural Center Early Learning Center 42 40 40 14,400 14,400Davison Elementary 801 560 560 91,475 91,475Dossin Elementary 382 405 405 48,808 48,808Duffield Elementary 483 470 470 139,500 70,000Eastside Early Childhood Center 44 40 40 14,400 14,400Edison Elementary 411 605 605 54,184 54,184Edmonson Elementary 262 155 155 54,400 54,400


134

Statistical and Other Information (Unaudited) Summary of Buildings and Sites (Continued)




Elementary Schools (Continued)Fairbanks Elementary 273 225 225 31,136 31,136Far West Early Learning Center 74 80 80 14,400 14,400Ferry Elementary 359 470 470 62,270 62,270Fitzgerald Elementary 793 630 630 66,586 66,586Fleming Elementary 589 540 540 55,940 55,940Ford Elementary 369 360 360 53,408 53,408Foreign Language Immersion & Cultural 418 - - - - Fox Elementary 96 60 60 6,060 6,060Gardner Elementary 379 245 245 35,158 35,158Garvey ES/MS (old Scripps Elem.) 357 - - - - GENESIS Elementary School 337 275 275 36,000 36,000Glazer Elementary 357 335 335 48,000 48,000Gompers Elementary 265 135 135 34,801 34,801Grayling Elementary 278 315 315 53,935 53,935Greenfield Park Elementary 426 315 315 78,654 78,654Guyton Elementary 360 - - - -Hamilton Elementary 452 495 495 83,675 83,675Hanneman Elementary 456 110 110 45,968 45,968Hanstein Elementary 323 180 180 23,632 23,632Harding Elementary 440 495 495 71,600 71,600Harms Elementary 551 450 450 41,477 41,477Healy Elementary 247 180 180 15,872 15,872Herman Rogers Academy 634 740 740 81,024 81,024Higgins Elementary 408 405 405 45,548 45,548Holcomb Elementary 460 380 380 52,500 52,500Holmes, A.L. Elementary 491 830 830 90,293 90,293Hosmer Elementary 369 450 450 61,688 61,688Houghten Elementary 421 450 450 58,368 58,368Howe Elementary 532 560 560 95,000 95,000Hubert Elementary 381 - - - - Hughes Academy (Dow Elem.) 414 335 335 55,360 55,360Hutchinson Elementary 316 405 405 60,088 60,088Jamieson Elementary 518 650 650 64,300 64,300Jemison Elementary 300 180 180 36,776 36,776Joyce Elementary 443 380 380 42,564 42,564Keidan Elementary 432 630 630 69,088 69,088Keith Elementary 415 335 335 49,341 49,341King Elementary 508 425 425 52,100 52,100Kosciusko Elementary 355 245 245 58,968 58,968Larned Elementary 166 200 200 19,372 19,372Law Elementary - - - - - Lodge Elementary 150 - - - - Logan Elementary 590 405 405 49,280 49,280Loving Elementary 372 290 290 49,200 49,200Lynch Elementary 227 135 135 39,330 39,330


135





Elementary Schools (Continued)MAAT IMHOTEP 571 405 405 56,000 56,000MacCulloch Elementary 557 630 630 71,350 71,350MacDowell Elementary 485 335 335 51,288 51,288Macomb Elementary 380 135 135 25,189 25,189Mann Elementary 491 405 405 48,378 48,378Mark Twain Elementary 302 495 495 45,670 45,670Marsh Elementary 200 155 155 23,296 23,296Marshall, John Elementary 749 560 560 64,880 64,880Marshall, Thurgood Elementary 670 630 630 80,192 80,192Mason Elementary 644 495 495 52,900 52,900Maybury Elementary 589 380 380 40,766 40,766McColl Elementary 419 225 225 38,348 38,348McFarlane Elementary 407 360 360 54,208 54,208McGregor Elementary 527 340 340 32,464 32,464McKenny Elementary 478 380 380 59,940 59,940Medicine Bear Elementary - - - - Monnier Elementary 418 675 675 74,200 74,200Neinas Elementary 495 380 380 64,250 64,250New Beckham Elementary - Partial 790 560 560 85,000 85,000New Law Elementary 864 560 560 95,000 95,000New Schulze Elementary 591 560 560 95,000 95,000Newberry Elementary 356 450 450 47,700 47,700Nichols Elementary 304 405 405 51,904 51,904Northwest Early Learning Center 43 40 40 14,400 14,400O. W. Holmes Elementary 511 495 495 70,470 70,470Oakman Elementary 175 290 290 46,464 46,464Old Howe Elementary - - - - - Owen Elementary 201 155 155 51,510 51,510Parker Elementary 627 650 650 82,688 82,688Parkman Elementary 378 335 335 46,592 46,592Pasteur Elementary 550 470 470 62,416 62,416Pitcher Elementary 426 360 360 41,224 41,224Pulaski Elementary 838 650 650 57,366 57,366Richard Elementary 637 450 450 40,064 40,064Richards, Fannie Elementary - - - - - Robeson ELC (old Turner Elementary) 110 - - - - Ron Brown Acad. (old Stellwagen ES) 400 - - 32,952 - Ron Brown Academy 628 560 560 85,000 85,000Rose Elementary 243 - - - - Rowan Elementary 201 - - - - Rutherford Elementary 421 - - - - Sanders Elementary 398 560 560 48,000 48,000Schulze Elementary - - - - - Stark Elementary - - - - - Stewart Elementary 358 335 335 58,800 58,800Thirkell Elementary 407 110 110 57,000 57,000Trix Elementary 432 360 360 40,451 40,451Van Zile Elementary 545 605 605 46,368 46,368


136





Elementary Schools (Continued)

Vandenberg Elementary 277 200 200 39,104 39,104Vernor Elementary 479 360 360 53,300 53,300Von Steuben ES/MS 548 605 605 52,768 52,768Wayne Elementary 535 405 405 43,470 43,470Weatherby Elementary 194 135 135 33,344 33,344Webster Elementary 381 360 360 44,358 44,358Westside Multicultural (Columbian Primary) 391 405 405 56,270 56,270White Elementary 971 923 923 112,912 112,912Wilkins Elementary 660 560 560 52,496 52,496Woodward Elementary 399 315 315 44,608 44,608Yost Academy 153 155 155 29,824 29,824Young, C. Elementary 681 315 315 67,805 67,805

Middle SchoolsAFPA EAST ES/MS - - - - - AFPA West (formerly Hughes Acad.) - - - - - Ann Arbor Trail Middle School 480 495 495 45,343 45,343Barbour Middle School 1,040 1,058 1,058 203,228 203,228Bates Academy 784 585 585 100,300 100,300Beaubien Middle School 905 808 808 178,816 178,816Blackwell Middle School 691 - - - - Boynton Middle School 539 900 900 120,135 120,135Brooks Middle School 643 540 540 109,000 109,000Burbank Middle School 756 473 473 91,020 91,020Burton Middle School 472 - - - - Butzel Middle School 408 360 360 135,600 135,600Cadillac Middle School 625 675 675 48,192 48,192Carver Middle School 645 473 473 41,104 51,104Cerveny Middle School 666 675 675 187,488 187,488Cleveland Middle School 1,102 563 563 102,352 102,352Clippert Middle School 396 338 338 28,762 28,762Coffey Middle School 419 405 405 56,559 56,559Columbus Middle School 764 518 518 52,224 52,224Courtis Middle School 519 675 675 74,048 74,048Detroit Math and Science Academy 225 270 270 42,800 42,800Detroit Open Middle School 359 315 315 33,500 33,500Dewey Middle School 403 765 765 78,850 78,850Dixon Middle School 733 675 675 60,544 60,544Drew Middle School 708 878 878 139,000 139,000Durfee Middle School 831 630 630 130,500 130,500Earhart Middle School 709 540 540 111,396 111,396Elmdale Conservatory 325 - - - - Emerson ES/MS 1,082 743 1,148 50,432 94,342Far West Alt. Middle School 69 - - - -


137





Middle Schools (Continued)

Farwell Middle School 904 720 720 96,304 96,304Fine and Perf. Arts East 502 - - - Fine Arts Academy (Burroughs MS) 624 855 855 129,592 129,592 Fisher Middle School 313 270 270 37,472 37,472Foch Middle School - - - - - Foch Middle School (old Garvey MS) 331 - - - - Foreign Language (old Renaissance HS) 874 765 765 91,410 91,410Golightly Education Center 578 518 518 61,256 105,166Grant Middle School 707 473 473 48,096 48,096Greenfield Union ES / MS 537 628 628 82,770 82,770Guest Middle School 830 675 675 80,448 80,448Hally Middle School 665 495 495 48,500 48,500Henderson Middle School 488 383 383 30,191 30,191Hutchins Middle School 539 945 945 111,465 138,056Jones Middle School 379 - - - - Joy Middle School 823 968 968 130,688 130,688Lessenger Middle School 769 518 518 93,258 93,258Lions Alt. Middle School 76 - - - - Longfellow Middle School 415 675 675 197,500 197,500Ludington Middle School 646 450 450 53,632 53,632Malcolm X Middle School 523 473 473 37,700 37,700Marquette ES/MS 884 990 990 48,016 91,926McMichael Middle School 409 653 653 55,070 55,070McNair Middle School 846 743 743 152,000 152,000Miller Middle School 666 824 824 134,252 134,252Munger Middle School 690 945 945 103,612 103,612Murphy Middle School 641 540 540 102,102 102,102New Heilmann Middle School - - 810 - 140,000New Osborn Middle School - - 810 - 140,000Noble Middle School 692 945 945 116,248 116,248Nolan Middle School 839 968 968 137,496 137,496Parks Middle School 618 630 630 41,056 41,056Pelham Middle School 205 428 428 114,200 114,200Phoenix Middle School 471 833 833 105,173 105,173Post Middle School 651 585 585 106,586 106,586Priest ES/MS 898 630 1,035 72,900 117,750Robeson Academy 750 1,013 1,013 164,662 164,662Robinson Middle School 735 - - - - Ruddiman Middle School 429 608 608 99,440 99,440Sampson Middle School 465 653 653 81,684 81,684Sherrard Middle School 502 900 900 143,510 143,510Sherrill Middle School 501 653 653 73,000 73,000Spain Elementary/Middle School 1,215 788 788 148,787 148,787Stephens Middle School 468 653 653 83,400 83,400


138





Middle Schools (Continued)Taft Middle School 699 383 383 95,594 95,594University Middle School 580 - - - Vetal Middle School 807 338 338 65,800 65,800Webber Middle School 627 765 765 120,438 120,438Winship Middle School 521 675 675 67,012 67,012Winterhalter Middle School 1,112 945 945 125,504 125,504Young, Whitney Middle School 400 405 405 67,805 69,500

High SchoolsBarsamian Prep. School 106 297 297 22,200 22,200Boykin Alternative High School 129 - - - - Breithaupt Voc High School 13 714 714 166,247 166,247Cass Technical High School 2,369 - - - - Central High School 971 170 1,254 62,614 268,914Chadsey High School 692 850 850 163,842 163,842Cody High School 1,570 1,658 1,658 338,949 338,949Comm/Media Arts High School 481 531 531 79,450 79,450Commerce High School 268 - - - - Cooley High School 1,153 999 999 321,024 321,024Crockett Career and Tech. Center 557 765 765 98,270 98,270Crosman High School 274 - - - - Davis Aerospace High School 285 425 425 49,400 49,400Denby High School 2,296 1,530 1,530 180,266 180,266Detroit City High School 242 361 361 42,972 42,972Detroit High School for Fine Arts 497 - - - - Ferguson Alternative MS/HS 268 383 383 67,270 67,270Finney High School 1,367 1,862 1,862 257,392 257,392Ford High School 1,305 1,122 1,122 270,218 270,218Golightly Vocational Tech. Center 22 816 816 61,256 61,256Kettering High School 1,278 867 867 165,362 215,632King, Martin Luther High School 1,799 1,530 1,530 293,752 293,752Krolik Alternative Ed. 168 179 179 28,412 28,412Mackenzie High School 1,348 1,275 1,275 223,960 223,960Millenium High School 243 - - - Mumford High School 1,699 1,403 1,403 240,273 240,273Murray-Wright High School 1,631 1,734 1,734 232,817 232,817New Cass Technical High School - - 2,244 - 388,528New HS for Fine/Performing Arts - - 1,199 - 281,668New HS for Fine/Performing Arts 238 383 383 81,915 81,915New Renaissance High School - - 999 - 350,000North End Alternative Ed. - - - - - Northern High School 1,080 714 714 154,496 154,496Northwestern High School 1,056 1,190 1,190 356,776 356,776Osborn High School 1,486 1,377 1,377 258,595 258,595Pershing High School 1,650 1,683 1,683 209,328 230,328Randolph Career and Tech. Center 28 425 425 70,125 70,125Redford High School 1,654 1,377 1,377 254,936 254,936


139





High Schools (Continued)Southeastern High School 1,331 - 1,275 - 318,146Southwestern High School 669 1,063 1,063 223,700 223,700Trombly Alternative High School 282 332 332 71,866 71,866Vincent Continuing Ed. Center 120 306 306 16,240 16,240West Side Alt. High School 33 383 383 28,500 28,500Western High School 1,333 1,063 1,063 214,412 214,412

Non-Instructional SitesAfrican Heritage Ctr./Staff Dev. Ctr. N/A N/A N/A - 9,000Canfield Audio/Visual N/A N/A N/A 30,216 30,216Central Administration Building N/A N/A N/A 137,700Central Distribution Center N/A N/A N/A 316,578 316,578Central Distribution Center N/A N/A N/A 169,000 169,000Central Maintenance Hub N/A N/A N/A 44,000 44,000Childrens' Museum N/A N/A N/A - 11,100Deiter Trainable Center N/A N/A N/A 47,712 47,712District Site Management N/A N/A N/A 9,000 9,000East Maintenance Hub N/A N/A N/A - 44,000Eastside Bus Terminal N/A N/A N/A 44,784 44,784Edison Garage N/A N/A N/A 3,464 3,464Field Learning Center N/A N/A N/A 51,582 51,582Field, Moses Center N/A N/A N/A 53,742 53,742Harris 21st Century Comm. N/A N/A N/A - - International Institute N/A N/A N/A - - Jessie Kennedy Institute N/A N/A N/A - - Lawton Building N/A N/A N/A - - Longfellow Annex Center N/A N/A N/A - - Marseilles Attendance N/A N/A N/A - - Northern Annex N/A N/A N/A 10,500 10,500Poe Developmental Center N/A N/A N/A - - Puritan Attendance N/A N/A N/A - - School for the Deaf N/A N/A N/A 61,152 61,152Schools Center Annex N/A N/A N/A - - Schools Center Building N/A N/A N/A - - Sinai Site N/A N/A N/A - 10,000Site Vehicle Maintenance Center N/A N/A N/A 28,000 28,000Washington Careers Center N/A N/A N/A 86,400 86,400West Maintenance Hub N/A N/A N/A - 24,000Westside Bus Terminal N/A N/A N/A 38,979 38,979Willis Warehouse N/A N/A N/A 170,688 170,688Wingert Vocational Pre-Center 49 - - 42,240 42,240


140





Elementary - Total 72,005 50,298 50,298 7,120,467 7,215,467 Middle School - Total 35,281 42,646 45,076 6,176,822 6,669,993 High School - Total 35,223 29,692 36,492 5,140,588 6,415,500 Non-Instructional - Total - - - 3,316,161 4,198,157

District-wide grand total 142,509 122,636 131,866 21,754,038 24,499,117

Source: Michigan Department of Treasury Form SBL-101-4P, Summary of Existing and Proposed School Facilities, submitted to

the State by Detroit Public Schools Program Management Team in conjunction with Bond Series 2003B, as of March 15, 2003

Note: The total enrollment for the grade levels is the actual student counts in grades K-5 (elementary school), 6-9 (middle

school), and 9-12 (high school), and not the totals of just the grade level schools. Total figures are adjusted for other factors as well, and will not necessarily match to the sum of the individual sites.


141

Statistical and Other Information (Unaudited) Graduate Information


School Year High SchoolAdult High School

Completion GED Graduates

1987-88 6,998 N/A N/A

1988-89 7,226 522 1095

1989-90 6,637 N/A N/A

1990-91 5,731 525 1870

1991-92 5,674 567 1592

1992-93 6,129 518 1804

1993-94 5,777 445 1784

1994-95 6,063 399 1956

1995-96 5,957 477 1418

1996-97 6,286 292 226

1997-98 6,549 274 339

1998-99 6,317 26 342

1999-00 6,332 77 230

2000-01 5,964 84 396

2001-02 5,382 106 247

2002-03 5,852 79 134

N/A - Not available Source: Student Information Services - Detroit Public Schools Office of Adult Education - Detroit Public Schools


142

2002-03 2001-02 2000-01 1999-00

Charge per lunch to students: Paid - Elementary $1.10 $1.10 $0.90 $0.90 Paid - Secondary $1.20 $1.20 $1.00 $1.00 Paid - High School $1.20 $1.20 $1.00 $1.00 Reduced $0.40 $0.40 $0.40 $0.40

Charge per lunch to adults a la carte a la carte a la carte a la carte

Number of days served 176 168 168 175

Number of free lunches served 10,988,855 11,902,270 11,614,288 12,438,594

Percent of total lunches served 80.74% 84.72% 85.59% 85.74%

Average number of free lunches served daily 62,437 70,847 69,133 71,078

Number of paid lunches served at reduced price 394,595 406,774 428,282 497,624


Number of paid lunches served at regular price 2,224,904 1,739,831 1,526,922 1,570,529


Average number of paid lunches served daily: At reduced price 2,242 2,421 2,549 2,844 At regular price 12,641 10,356 9,089 8,974

Total number of lunches served 13,609,353 14,048,875 13,569,492 14,506,747

Average number of lunches served daily 77,326 73,624 80,771 82,896

Total number of students 157,003 159,694 162,693 168,213

Source: Food Services Department

Note: Unlicensed Child and Adult Care Feeding Program (CACFP) numbers are not included in the figures.

143

Statistical and Other Information (Unaudited) School Lunch Program


1998-99 1997-98 1996-97 1995-96

$0.90 $0.90 $0.90 $0.90$1.00 $1.00 $1.00 $1.00$1.00 $1.00 $1.00 $1.00$0.40 $0.40 $0.40 $0.40

a la carte a la carte a la carte a la carte

168 172 168 168

12,313,009 13,000,927 12,985,513 12,593,798

86.58% 87.97% 87.31% 86.41%

73,292 75,587 77,295 74,963

445,001 393,422 309,083 312,087

3.13% 2.66% 2.08% 2.14%

1,463,297 1,384,498 1,577,691 1,668,323

10.29% 9.37% 10.61% 11.45%

2,649 2,287 1,840 1,858 8,710 8,049 9,391 9,930

14,221,307 14,778,847 14,872,287 14,574,208

84,651 85,924 88,526 86,751

173,848 173,871 173,080 169,996


144

Statistical and Other Information (Unaudited) Pupil Transportation Data Year Ended June 30, 2003

TotalRegular Pupil Current Average

Transportation Operating CostSchool Year Mileage* Expenditures Per Mile

1993-1994 N/A* N/A* - $

1994-1995 N/A* N/A* - $

1995-1996 N/A* N/A* - $

1996-1997 5,645,366 47,385,525$ 8.39$

1997-1998 5,046,496 51,186,310$ 10.14$

1998-1999 3,286,598 47,874,247$ 14.57$

1999-2000 3,172,568 46,397,180$ 14.62$

2000-2001 5,480,808 54,167,982$ 9.88$

2001-2002 4,976,315 50,849,335$ 10.22$

2002-2003 4,353,621 51,097,194$ 11.74$

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1996-1997 1997-1998 1998-1999 1999-2000 00-01 2001-2002 2002-2003

Tota

l Mile

age

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

Cost

Per

Mile

Total Mileage Cost Per Mile

* N/A - Information is not available. Source: Form SE-4094


145

Statistical and Other Information (Unaudited) Demographic Statistics - City of Detroit


YearSchool Year Population

School Enrollment*

Average Daily Attendance

Unemployment Percentage

Rate

1993 1993-1994 1,011,977 167,132 92% 13.20%

1994 1994-1995 1,008,430 167,551 91% 10.80%

1995 1995-1996 1,003,701 169,996 92% 10.00%

1996 1996-1997 995,233 173,080 90% 9.10%

1997 1997-1998 975,477 173,871 90% 7.90%

1998 1998-1999 967,360 173,848 90% 7.20%

1999 1999-2000 965,084 168,213 N/A 7.60%

2000 2000-2001 951,270 162,693 90% 6.60%

2001 2001-2002 931,413 159,694 89% 5.10%

2002 2002-2003 921,312 157,003 91% 6.20%

N/A - Not available

* Figures are based on the winter count and do not include preschool Sources: Department of Commerce, Bureau of the Census; the State Aid Financial Status Report;

Michigan Employment Security Agency


146

Statistical and Other Information (Unaudited) Largest Employers - City of Detroit


Company Type of Business Number of Employees

Detroit Public Schools Public school system 23,804

City of Detroit City government 20,799

Detroit Medical Center Health care system 11,836

U.S. government Federal government 11,363

DaimlerChrysler Corp. Automobile manufacturer 9,707

Henry Ford Health System Health care system 7,337

General Motors Corp. Automobile manufacturer 8,865

U.S. Postal Service Postal service 6,157

St. John Health Health care system 5,767

State of Michigan State government 5,637

Source: Crain's List, July 21, 2003


147

Statistical and Other Information (Unaudited) District Staffing


ClassificationNumber of Employees

Instructional StaffBasic programs 8,597 Added needs 4,534 Adult education 111 Other -

Total instructional staff 13,242

Instructional Support StaffPupil services 725 Instructional staff services 464

Total instructional support staff 1,189

Non-Instructional Support StaffExecutive administration (including chief executive officer and other

executive administrators) 103 School administration (including principals and assistant principals) 4,100 Business services 276 Food service 1,159 Operations and maintenance 2,506 Transportation 828 Central support services 358 Community services 43

Total non-instructional support staff 9,373

Total staff 23,804

Source: School District Human Resources System


148

2003 2002 2001 2000

Local SourcesProperty taxes 74,715,066$ 81,327,181$ 75,463,886$ 71,925,327$ Earnings on investments 1,849,862 4,273,293 7,337,357 7,140,951 Special education millage 55,166,068 46,785,273 45,027,284 53,305,293 Other local 4,207,293 17,056,839 - -

Total Local Revenue 135,938,289$ 149,442,586$ 127,828,527$ 132,371,571$ % of Revenue from Local Revenue 8.86% 9.62% 8.81% 9.02%% Change in Local Revenue -9.04% 16.91% -3.43% 1.20%

State SourcesState aid 1,083,956,145$ 1,071,667,196$ 1,056,977,769$ 1,046,920,520$ At-risk 79,509,349 94,425,757 91,911,168 75,877,780 Other state sources 27,984,337 38,613,676 - -

Total State Revenue 1,191,449,831$ 1,204,706,629$ 1,148,888,937$ 1,122,798,300$ % of Revenue from State Revenue 77.66% 77.56% 79.18% 76.48%% Change in State Revenue -1.10% 4.86% 2.32% 0.77%

Federal SourcesEducation Consolidation and Improvements Act I 112,355,738$ 100,300,918$ 97,195,687$ 84,218,687$ Other federal sources 94,431,124 98,730,971 - -

Total Federal Revenue 206,786,862$ 199,031,889$ 97,195,687$ 84,218,687$ % of Revenue from Federal Revenue 13.48% 12.82% 6.70% 5.74%% Change in Federal Revenue 3.90% 104.77% 15.41% -8.59%

Other General Operations - $ - $ 9,980,980$ 33,249,441$ % of Revenue from Other General Operations - - 0.69% 2.26%% Change in Other General Operations - - -69.98% 68.48%

Other Special Program Operations - - 66,114,274$ 58,371,803$ % of Revenue from Other Special Program Operations - - 4.56% 3.97%% Change in Other Special Program Operations - - 13.26% 18.19%

Auxilliary Operations - - 881,474$ 37,102,162$ % of Revenue from Auxiliary Operations - - 0.06% 2.53%% Change in Auxiliary Operations - - -0.98% 5.60%

Total Revenue 1,534,174,982$ 1,553,181,104$ 1,450,889,879$ 1,468,111,964$

% Change in Total Revenues -1.22% 7.05% -1.17% 1.85%

Student Enrollment 157,003 159,694 162,693 168,213 % Change in Student Enrollment -1.69% -1.84% -3.28% -3.24%

Total Revenue Per Student 9,772$ 9,726$ 8,918$ 8,728$ % Change in Total Revenue Per Student 0.47% 9.06% 2.18% 5.27%

Notes:

Prior to 2001, auxiliary operations included Food Service and Athletics.In 2002, revenue classifications were modified to conform with GASB No. 34.

149

Statistical and Other Information (Unaudited) General Fund Revenue by Source


1999 1998 1997 1996 1995 1994

76,616,502$ 74,291,346$ 74,338,605$ 65,206,513$ 57,541,160$ 231,357,577$ 7,956,383 9,121,264 7,967,874 5,432,661 4,619,552 -

46,233,973 33,851,192 25,789,013 45,019,568 30,578,513 22,728,984 - - - - - -

130,806,858$ 117,263,802$ 108,095,492$ 115,658,742$ 92,739,225$ 254,086,561$ 9.07% 8.40% 7.96% 8.73% 7.53% 22.75%

11.55% 8.48% -6.54% 24.71% -63.50% 10.39%

1,034,589,767$ 1,016,706,222$ 983,466,283$ 972,614,955$ 979,752,119$ 682,451,470$ 79,661,241 75,078,955 73,229,079 60,881,361 - -

- - - - - -

1,114,251,008$ 1,091,785,177$ 1,056,695,362$ 1,033,496,316$ 979,752,119$ 682,451,470$ 77.30% 78.20% 77.78% 78.02% 79.57% 61.09%2.06% 3.32% 2.24% 5.49% 43.56% 11.76%

92,128,414$ 94,574,532$ 97,782,027$ 91,694,819$ 77,750,084$ 84,117,809$ - - - - - -

92,128,414$ 94,574,532 97,782,027$ 91,694,819$ 77,750,084$ 84,117,809$ 6.39% 6.77% 7.20% 6.92% 6.31% 7.53%

-2.59% -3.28% 6.64% 17.94% -7.57% 9.96%

19,735,154$ 11,988,373$ 11,134,970$ 7,549,281$ 2,766,817$ 8,340,367$ 1.37% 0.86% 0.82% 0.57% 0.22% 0.75%

64.62% 7.66% 47.50% 172.85% -66.83% -35.08%

49,389,245$ 44,109,150$ 48,841,380$ 42,470,626$ 43,369,093$ 57,514,024$ 3.43% 3.16% 3.59% 3.21% 3.52% 5.15%

11.97% -9.69% 15.00% -2.07% -24.59% 16.04%

35,134,044$ 36,347,857$ 36,069,451$ 33,724,815$ 34,924,172$ 30,565,524$ 2.44% 2.61% 2.65% 2.55% 2.85% 2.73%

-3.34% 0.77% 6.95% -3.43% 14.26% 2.09%

1,441,444,723$ 1,396,068,891$ 1,358,618,682$ 1,324,594,599$ 1,231,301,510$ 1,117,075,755$

3.25% 2.76% 2.57% 7.58% 10.23% 10.64%

173,848 173,871 173,080 169,996 167,551 167,132 -0.01% 0.46% 1.81% 1.46% 0.25% -8.43%

8,291$ 8,029$ 7,850$ 7,792$ 7,349$ 6,684$ 3.26% 2.28% 0.81% 6.03% 9.95% 20.83%


150

Statistical and Other Information (Unaudited) Certified Staff Data


All instructional staff are required to possess a valid Michigan teaching certificate at the appropriate level and with the appropriate endorsements for the instructional assignment. To obtain a Michigan teaching certificate, an individual (1) must be recommended to the Michigan Department of Education by an approved Michigan teacher preparation institution upon completion of all requirements or (2) apply directly to the Michigan Department of Education if she/he holds a valid teaching certificate from another state. The requirements for a Michigan teaching certificate are determined by statute and set forth in the Administrative Rules governing the Certification of Michigan Teachers. The Michigan Compiled School Laws require that the School District enter into an employment contract only with an individual holding a valid Michigan certificate. The employment contract is terminated in the event that an individual does not present evidence of continuing certification. Michigan Teaching Certificate requirements include: Provisional, valid for six years • Bachelor’s degree • Completion of a minimum of 20 semester hours of coursework relevant to the delivery of instruction, including methods and materials and directed teaching • Substantive content knowledge appropriate for instruction at either the elementary (K-5), middle (6-8), or secondary (7-12) levels • Coursework in the teaching of reading appropriate to the level of the teaching certificate • Completion of the appropriate Michigan tests for teacher certification Professional, valid for five years • Three years successful teaching at the level of the certificate and in a certificate endorsement

area • Minimum of 18 graduate hours of coursework in a planned program Professional - Renewal, valid for five years • For each renewal, completion of six hours of coursework or 18 continuing education units The School District’s current certified staff averages 16.74 years of in-district experience with the following educational level distribution:

Bachelor’s Degree Master’s Degree Doctorate Degree

36.35% 62.76% 0.89%

Documents

Detroit Public Schools Detroit, Michigandetroitk12.org/data/finance/docs/Final-Detroit Public Schools CAFR... · Detroit Public Schools Detroit, Michigan Comprehensive Annual Financial