PRELIMINARY OFFICIAL STATEMENT...2018/07/11 · Preliminary Official Statement and the information contained herein are subject to completion or amen dment. Under no circumstances

DATED NOVEMBER 10, 2016

NEW ISSUE RATINGElectronic Bidding via PARITY® Moody’s: " "NOT Bank Interest Deduction EligibleBOOK-ENTRY-ONLY SYSTEM

In the opinion of Bond Counsel, under existing law (i) interest on the Bonds will be excludable from gross income of the holders thereof for purposesof federal taxation and (ii) interest on the Bonds will not be a specific item of tax preference for purposes of the federal alternative minimum tax imposed onindividuals and corporations, all subject to the qualifications described herein under the heading "Tax Exemption." Interest on the Bonds is exempt from incometaxation and the Bonds are exempt from ad valorem taxation by the Commonwealth of Kentucky and political subdivisions thereof (see "Tax Exemption" herein).

$12,775,000*BOONE COUNTY SCHOOL DISTRICT FINANCE CORPORATION

SCHOOL BUILDING REFUNDING REVENUE BONDS,SERIES 2016B

Dated: December 1, 2016 Due: as shown below

Interest on the Bonds is payable each February 1 and August 1, beginning February 1, 2017. The Bonds will mature asto principal on February 1, 2017 and August 1, 2017 and each August 1 thereafter as shown below. The Bonds are being issuedin Book-Entry-Only Form and will be available for purchase in principal amounts of $5,000 and integral multiples thereof.

Maturing Interest Reoffering

August 1 Amount Rate Yield CUSIP

2/1/2017 $115,000 % %

2017 $3,205,000 % %

2018 $3,585,000 % %

2019 $3,580,000 % %

2020 $2,290,000 % %

The Bonds are not subject to redemption prior to their stated maturities as described herein.

The Bonds constitute a limited indebtedness of the Boone County School District Finance Corporation and are payablefrom and secured by a pledge of the gross income and revenues derived by leasing the Project on an annually renewable basis tothe Boone County Board of Education.

The Secretary of the Boone County School District Finance Corporation will until November 17, 2016, at 11:00 A.M.,E.S.T., receive competitive bids for the Bonds at the office of the Executive Director of the Kentucky School Facilities ConstructionCommission, 229 West Main Street, Suite 102, Frankfort, Kentucky 40601.

*As set forth in the "Official Terms and Conditions of Bond Sale," the principal amount of Bonds sold to thesuccessful bidder is subject to a Permitted Adjustment by increasing or decreasing the amount awarded by up to $1,280,000.

PURCHASER'S OPTION: The Purchaser of the Bonds, within 24 hours of the sale, may specify to the Financial Advisorthat any Bonds may be combined immediately succeeding sequential maturities into a Term Bond(s), bearing a single rate of interest,with the maturities set forth above (or as may be adjusted as provided herein) being subject to mandatory redemption in suchmaturities for such Term Bond(s).

The Bonds will be delivered utilizing the BOOK-ENTRY-ONLY SYSTEM administered by The Depository TrustCompany.

The Corporation deems this preliminary Official Statement to be final for purposes of the Securities and ExchangeCommission Rule 15c2-12(b)(1), except for certain information on the cover page hereof which has been omitted in accordancewith such Rule and which will be supplied with the final Official Statement.

Th

is P

reli

min

ary

Off

icia

l S

tate

men

t a

nd

th

e in

form

ati

on

co

nta

ined

her

ein

are

su

bje

ct t

o c

om

ple

tio

n o

r a

men

dm

ent.

Un

der

no

cir

cum

sta

nce

s sh

all

this

Pre

lim

ina

ry O

ffic

ial

Sta

tem

ent

con

stit

ute

an

off

er t

o s

ell

or

the

soli

cita

tio

n o

f a

n o

ffer

to

bu

y, n

or

sha

ll t

her

e b

e a

ny

sa

les

of

thes

e B

on

ds

in a

ny

juri

sdic

tio

n i

n w

hic

h s

uch

off

er, so

lici

tati

on

or

sale

wo

uld

be

un

law

ful

pri

or

to r

egis

tra

tio

n o

r q

ua

lifi

cati

on

un

der

th

e la

ws

of

an

y s

uch

ju

risd

icti

on

.

PRELIMINARY OFFICIAL STATEMENT

i

BOONE COUNTYBOARD OF EDUCATION

Dr. Maria Brown, ChairpersonEd Massey, Vice Chairperson

Steve Templeton, MemberKaren Byrd, Member

Bonnie Rickert, Member

Randy Poe, SuperintendentKaren Evans, Secretary

BOONE COUNTY SCHOOL DISTRICTFINANCE CORPORATION

Dr. Maria Brown, PresidentEd Massey, Vice PresidentSteve Templeton, Member

Karen Byrd, MemberBonnie Rickert, Member

Ed Massey, Secretary/Treasurer

BOND COUNSEL

Keating Muething & Klekamp PLLCincinnati, Ohio

FINANCIAL ADVISOR

Ross, Sinclaire & Associates, LLCLexington, Kentucky

PAYING AGENT AND REGISTRAR

U.S. Bank, National AssociationCincinnati, Ohio

BOOK-ENTRY-ONLY SYSTEM

ii

REGARDING USE OF THIS OFFICIAL STATEMENT

This Official Statement does not constitute an offering of any security other than the original offering ofthe Boone County School District Finance Corporation School Building Refunding Revenue Bonds, Series 2016B,identified on the cover page hereof. No person has been authorized by the Corporation or the Board to give anyinformation or to make any representation other than that contained in the Official Statement, and if given or madesuch other information or representation must not be relied upon as having been given or authorized. This OfficialStatement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale ofthe Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or sale.

The information and expressions of opinion herein are subject to change without notice, and neither thedelivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create anyimplication that there has been no change in the affairs of the Corporation or the Board since the date hereof.

Neither the Securities and Exchange Commission nor any other federal, state or other governmental entityor agency, except the Corporation will pass upon the accuracy or adequacy of this Official Statement or approve theBonds for sale.

The Official Statement includes the front cover page immediately preceding this page and all Appendiceshereto.

iii

TABLE OF CONTENTS Page

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Book-Entry-Only System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1The Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Kentucky School Facilities Construction Commission . . . . . . . . . . . . . . . . . . . . 4Biennial Budget for Period Ending June 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . 4Outstanding Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5The Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Registration, Payment and Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Mortgage Lien . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6The Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Verification of Mathematical Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6The Plan of Refunding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Purpose of the Prior Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7State Intercept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Commission's Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Estimated Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Estimated Use of Bond Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8District Student Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9State Support of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Support Education Excellence in Kentucky (SEEK) . . . . . . . . . . . . . . . 9Capital Outlay Allotment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Facilities Support Program of Kentucky . . . . . . . . . . . . . . . . . . . . . . . 10

Local Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Homestead Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Limitation on Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Local Thirty Cents Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Additional 15% Not Subject to Recall . . . . . . . . . . . . . . . . . . . . . . . . . 11Assessment Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Special Voted and Other Local Taxes . . . . . . . . . . . . . . . . . . . . . . . . . 11Local Tax Rates, Property Assessments, and Revenue Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Overlapping Bond Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12SEEK Allotment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14State Budgeting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Continuing Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Tax Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Approval of Legality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16No Legal Opinion Expressed as to Certain Matters . . . . . . . . . . . . . . . . . . . . . . 16Bond Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Financial Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Approval of Official Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Demographic and Economic Data . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX AAudited Financial Statements for FY Ending June 30, 2015 . . . . . APPENDIX BContinuing Disclosure Agreement . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX COfficial Terms & Conditions of Bond Sale . . . . . . . . . . . . . . . . . . APPENDIX DOfficial Bid Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX E

1

OFFICIAL STATEMENTRelating to the Issuance of

$12,775,000*

BOONE COUNTY SCHOOL DISTRICT FINANCE CORPORATIONSCHOOL BUILDING REFUNDING REVENUE BONDS,

SERIES 2016B

* Subject to Permitted Adjustment

INTRODUCTION

The purpose of this Official Statement, which includes the cover page and Appendices hereto, is to setforth certain information pertaining to the Boone County School District Finance Corporation (the "Corporation")School Building Refunding Revenue Bonds, Series 2016 (the "Bonds").

The Bonds are being issued to (i) provide funds to defease the outstanding Boone County School DistrictFinance Corporation School Building Revenue Refunding Bonds, Series 2006, dated December 1, 2006 (the "2006Bonds"), maturing August 1, 2017 and thereafter (the "Refunded Bonds"), by depositing in an escrow account anamount that, together with investment earnings derived therefrom, will be sufficient to pay the accrued interest on,and currently refund on December 21, 2016, the Refunded Bonds; and, (ii) pay the cost of the Bond issuanceexpenses (see "Plan of Refunding" herein). The Board has determined that the plan of refunding the RefundedBonds will result in considerable interest cost savings to the Boone County School District (the "District") and isin the best interest of the District.

The Bonds are revenue bonds and constitute a limited indebtedness of the Corporation. The Bonds willbe secured by a statutory mortgage lien and a pledge of the rental income derived by the Corporation from leasingthe Project to the Boone County Board of Education (the "Board") on a year to year basis (see "Security" herein).

All financial and other information presented in this Official Statement has been provided by the BooneCounty Board of Education from its records, except for information expressly attributed to other sources. Thepresentation of financial and other information is not intended, unless specifically stated, to indicate future orcontinuing trends in the financial position or other affairs of the Board. No representation is made that pastexperience, as is shown by financial and other information, will necessarily continue or be repeated in the future.

This Official Statement should be considered in its entirety, and no one subject discussed should beconsidered more or less important than any other by reason of its location in the text. Reference should be madeto laws, reports or other documents referred to in this Official Statement for more complete information regardingtheir contents.

Copies of the Bond Resolution authorizing the issuance of the Bonds, the Participation Agreement andthe Contract, Lease and Option, dated as of December 1, 2016, may be obtained at the office of Keating Muething& Klekamp PLL, Bond Counsel, One East 4th Street, Suite 1400, Cincinnati, Ohio 45202.


The following information concerning DTC and DTC's book-entry system has been obtained from DTCand contains statements that are believed to describe accurately DTC, the method of effecting book-entry transfersof securities distributed through DTC and certain related matters, but neither the Corporation nor the Registrarand Paying Agent takes any responsibility for the accuracy of such statements.

The Bonds initially will be issued solely in book-entry form to be held in the book-entry-only systemmaintained by The Depository Trust Company ("DTC"), New York, New York. So long as such book-entry system

2

is used, only DTC will receive or have the right to receive physical delivery of Bonds and, except as otherwiseprovided herein with respect to tenders by Beneficial Owners of Beneficial Ownership Interests, Beneficial Ownerswill not be or be considered to be, and will not have any rights as, owners or holders of the Bonds under theResolution.

DTC will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securitiesregistered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested byan authorized representative of DTC. One fully-registered Bond certificate will be issued for each maturity ofBonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC, the world's largest depository, is a limited-purpose trust company organized under the New YorkBanking Law, a "banking organization" within the meaning of the New York Banking Law, a member of theFederal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code,and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues,corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participantsof sales and other securities transactions in deposited securities, through electronic computerized book-entrytransfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement ofsecurities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks,trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of TheDepository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participantsof DTC and Members of the National Securities Clearing Corporation, Government Securities ClearingCorporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC,and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American StockExchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also availableto others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearingcorporations that clear through or maintain a custodial relationship with a Direct Participant, either directly orindirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicableto its Participants are on file with the Securities and Exchange Commission. More information about DTC can befound at www.dtcc.com.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which willreceive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Ownerswill not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected toreceive written confirmations providing details of the transaction, as well as periodic statements of their holdings,from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfersof ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and IndirectParticipants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representingtheir ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds isdiscontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered inthe name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorizedrepresentative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or suchother DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actualBeneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whoseaccounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and IndirectParticipants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participantsto Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governedby arrangements among them, subject to any statutory or regulatory requirements as may be in effect from timeto time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of noticesof significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendmentsto the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holdingthe Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Registrar and Paying Agent and requestthat copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are beingredeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in suchmaturity to be redeemed.

3

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bondsunless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTCmails an Omnibus Proxy to the Corporation as soon as possible after the record date. The Omnibus Proxy assignsCede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on therecord date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., orsuch other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit DirectParticipants' accounts upon DTC's receipt of funds and corresponding detail information from the Corporation orthe Registrar and Paying Agent, on payable date in accordance with their respective holdings shown on DTC'srecords. Payments by Participants to Beneficial Owners will be governed by standing instructions and customarypractices, as is the case with securities held for the accounts of customers in bearer form or registered in "streetname" and will be the responsibility of such Participant and not of DTC or its nominee, the Registrar and PayingAgent or the Corporation, subject to any statutory or regulatory requirements as may be in effect from time to time.Payment of redemption proceeds, distributions, and interest payments to Cede & Co. (or such other nominee asmay be requested by an authorized representative of DTC) is the responsibility of the Corporation or the Registrarand Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, anddisbursement of such payments to the Beneficial Owners will be the responsibility of Direct and IndirectParticipants.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by givingreasonable notice to the Corporation or the Registrar and Paying Agent. Under such circumstances, in the eventthat a successor depository is not obtained, Bond certificates are required to be printed and delivered.

The Corporation may decide to discontinue use of the system of book-entry transfers through DTC (ora successor securities depository). In that event, Bond certificates will be printed and delivered.

NEITHER THE CORPORATION NOR THE REGISTRAR AND PAYING AGENT WILL HAVE ANYRESPONSIBILITY OR OBLIGATION TO ANY DIRECT PARTICIPANT, INDIRECT PARTICIPANT ORANY BENEFICIAL OWNER OR ANY OTHER PERSON NOT SHOWN ON THE REGISTRATION BOOKSOF THE REGISTRAR AND PAYING AGENT AS BEING A HOLDER WITH RESPECT TO: (1) THEBONDS; (2) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECTPARTICIPANT OR INDIRECT PARTICIPANT; (3) THE PAYMENT BY DTC OR ANY DIRECTPARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNERIN RESPECT OF THE PURCHASE PRICE OF TENDERED BONDS OR THE PRINCIPAL ORREDEMPTION PRICE OF OR INTEREST ON THE BONDS; (4) THE DELIVERY BY ANY DIRECTPARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICHIS REQUIRED OR PERMITTED UNDER THE TERMS OF THE INDENTURE TO BE GIVEN TOHOLDERS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THEEVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (6) ANY CONSENT GIVEN OR OTHERACTION TAKEN BY DTC AS HOLDER.

THE CORPORATION

The Corporation has been formed in accordance with the provisions of Sections 162.120 through 162.300and Section 162.385 of the Kentucky Revised Statutes ("KRS"), and KRS Chapter 273 and KRS 58.180, as anon-profit, non-stock corporation for the purpose of financing necessary school building facilities for and on behalfof the Board. Under the provisions of existing Kentucky law, the Corporation is permitted to act as an agency andinstrumentality of the Board for financing purposes and the legality of the financing plan to be implemented bythe Board herein referred to has been upheld by the Kentucky Court of Appeals (Supreme Court) in the case ofWhite v. City of Middlesboro, Ky. 414 S.W.2d 569.

Any bonds, notes or other indebtedness issued or contracted by the Corporation shall, prior to the issuanceor incurrence thereon, be specifically approved by the Board. The members of the Board of Directors of theCorporation are the members of the Board. Their terms expire when they cease to hold the office and anysuccessor members of the Board are automatically members of the Corporation upon assuming their public offices.

4

KENTUCKY SCHOOL FACILITIES CONSTRUCTION COMMISSION

The Kentucky School Facilities Construction Commission (the "Commission") is an independent corporateagency and instrumentality of the Commonwealth of Kentucky established pursuant to the provisions of Sections157.611 through 157.640 of the Kentucky Revised Statutes as repealed, amended, and reenacted (the "Act") forthe purpose of assisting local school districts in meeting their capital construction needs.

The Regular Session of the General Assembly of the Commonwealth adopted the State's Budget for thebiennium ending June 30, 2016. Inter alia, the Budget provides $99,334,000 in FY 2014-15 and $108,270,000 inFY 2015-16 to pay debt service on existing and future bond issues; provides $100,000,000 of the Commission'sprevious Offers of Assistance made during the last biennium; and authorizes $100,000,000 in additional Offersof Assistance for the current biennium to be funded in the Budget for the biennium ending June 30, 2018.

The 1986, 1988, 1990, 1992, 1994, 1996, 1998, 2000, 2003, 2005, 2006, 2008, 2010, 2012 and 2014Regular Sessions of the Kentucky General Assembly appropriated funds to be used for debt service of participatingschool districts. The appropriations for each biennium are shown in the following table:

Biennium Appropriation1986-88 $18,223,2001988-90 14,050,7001990-92 13,542,8001992-94 3,075,3001994-96 2,800,0001996-98 4,996,0001998-00 12,141,5002000-02 8,100,0002002-04 9,500,0002004-06 14,000,0002006-08 9,000,0002008-10 10,968,0002010-12 12,656,2002012-14 8,469,2002014-16 8,764,000

Total $150,286,900

In addition to the appropriations for new financings as shown, appropriations subsequent to that for 1986included additional funds to continue to meet the annual debt requirements for all bond issues involvingCommission participation issued in prior years.

BIENNIAL BUDGET FOR PERIOD ENDING JUNE 30, 2018

The Kentucky General Assembly, during its Regular Session, adopted a budget for the biennium endingJune 30, 2018 which was approved and signed by the Governor. Such budget was effective beginning July 1, 2016.

OUTSTANDING BONDS

The following table shows the outstanding Bonds of the Board by the original principal amount of eachissue, the current principal outstanding, the amount of the original principal scheduled to be paid with thecorresponding interest thereon by the Board or the School Facilities Construction Commission, the approximateinterest range; and, the final maturity date of the Bonds:

5

Current Principal Principal Approximate Bond Original Principal Assigned to Assigned to Interest Rate Final Series Principal Outstanding Board Commission Range Maturity

2006-REF $23,310,000 $12,455,000 $21,649,619 $1,660,381 3.875% 20202007 $36,365,000 $32,190,000 $36,365,000 $0 4.000% 2017

2008-REF $5,600,000 $710,000 $4,671,714 $928,286 3.300% 20172009 $14,270,000 $11,055,000 $13,397,723 $872,277 3.250% - 4.875% 2029

2009-REF $5,960,000 $710,000 $5,960,000 $0 2.900% 20172010-REF $4,105,000 $2,635,000 $4,105,000 $0 2.500% - 3.200% 2021

2010-QSCB $11,085,000 $11,085,000 $11,085,000 $0 5.750% 20272010B-REF $23,810,000 $17,370,000 $23,810,000 $0 2.000% - 2.500% 2021

2011 $16,590,000 $14,145,000 $14,128,360 $2,461,640 3.000% - 5.000% 20312011-REF $9,985,000 $3,580,000 $9,570,610 $414,390 2.000% 20182012-REF $27,700,000 $22,865,000 $27,700,000 $0 2.250% - 2.750% 2024

2012B-REF $12,170,000 $10,405,000 $10,755,803 $1,414,197 2.000% - 2.625% 20242013 $5,975,000 $5,620,000 $4,912,158 $1,062,842 3.000% - 3.250% 2033

2014-REF $11,905,000 $11,260,000 $11,905,000 $0 2.000% - 3.000% 20252015-REF $12,375,000 $12,120,000 $11,711,931 $663,069 2.000% - 3.000% 20262016-REF $32,425,000 $32,425,000 $32,425,000 $0 2.000% - 3.000% 2027

2016 $10,120,000 $10,120,000 $10,120,000 $0 2.000% - 3.250% 2036

TOTALS: $263,750,000 $210,750,000 $254,272,918 $9,477,082

AUTHORITY

The Board of Directors of the Corporation has adopted a Bond Resolution which authorized among

other things:

i) the issuance of approximately $12,775,000 of Bonds subject to a permitted adjustment

increasing or decreasing the amount awarded by up to $1,280,000;

ii) the advertisement for the public sale of the Bonds;

iii) the Official Terms and Conditions for the sale of the Bonds to the successful bidder; and

iv) the President and Secretary of the Corporation to execute certain documents relative to the

sale and delivery of the Bonds.

THE BONDS

General

The Bonds will be dated December 1, 2016, will bear interest from that date as described herein, payable

semi-annually on February 1 and August 1 of each year, commencing February 1, 2017 and will mature as to

principal on February 1, 2017 and August 1, 2017 and each August 1 thereafter in the years and in the principal

amounts as set forth on the cover page of this Official Statement.

Registration, Payment and Transfer

The Bonds are to be issued in fully-registered form (both principal and interest). U.S. Bank, National

Association, Cincinnati, Ohio, the Bond Registrar and Paying Agent, shall remit interest on each semiannual due

date to Cede & Co., as the nominee of The Depository Trust Company. Please see Book-Entry-Only System.

6

Redemption

The Bonds are not subject to optional redemption prior to their stated maturity.

SECURITY

General

The Bonds are revenue bonds and constitute a limited indebtedness of the Corporation. The Bonds are

payable as to both principal and interest solely from the income and revenues derived from the leasing of the

Project acquired and constructed from the Bond proceeds from the Corporation to the Board.

Mortgage Lien

The Bonds are secured by a statutory mortgage lien on and a pledge of revenues derived from the Project;

provided, however, said lien and pledge shall rank on parity with the lien and pledge securing the Remaining

Bonds.

The Lease

The Board has leased the school Project securing the Bonds for an initial period from December 1, 2016

through June 30, 2017 with the option in the Board to renew said Lease from year to year for one year at a time,

at annual rentals, sufficient in each year to enable the Corporation to pay, solely from the rental due under the

Lease, the principal and interest on all of the Bonds as same become due. The Lease provides further that so long

as the Board exercises its annual renewal options, its rentals will be payable according to the terms and provisions

of the Lease until August 1, 2020, the final maturity date of the Bonds.

VERIFICATION OF MATHEMATICAL ACCURACY

AMTEC, will verify from the information provided to them the mathematical accuracy as of the date of

the closing of the Bonds of (1) the computations contained in the provided schedules to determine that the

anticipated receipts from the securities and cash deposits listed in the Financial Advisor's schedules, to be held in

the Escrow Fund (as defined under “Plan of Refunding” herein), will be sufficient to pay, when due, the principal,

interest and call premium payment requirements, if any, of the Refunded Bonds, and (2) the computations of yield

on both the securities and the Bonds contained in the provided schedules used by Bond Counsel in its

determination that the interest on the Bonds is not includable in gross income for federal income tax purposes.

AMTEC will express no opinion on the assumptions provided to them, nor as to the exemption from taxation of

the interest on the Bonds.

PLAN OF REFUNDING

A sufficient amount of the proceeds of the Bonds at the time of delivery will be deposited into a special

escrow account established for application to the redemption of the Refunded Bonds (the "Escrow Fund"). The

Escrow Fund deposit, together with investment earnings derived therefrom, is intended to be sufficient to pay the

accrued interest and refund on a current basis the Refunded Bonds on December 21, 2016. The Board has

determined that the plan of refunding the Refunded Bonds will result in considerable interest cost savings to the

District and is in the best interest of the District.

The investments purchased for the Escrow Fund shall be limited to (i) direct Obligations of or Obligations

guaranteed by the United States government, or (ii) Obligations of agencies or corporations of the United States

as permitted under KRS 66.480(1)(b) and (c) or (iii) Certificates of Deposit of FDIC banks fully collateralized by

direct Obligations of or Obligations guaranteed by the United States.

7

The Plan of Refunding the Refunded Bonds as set out in the Preliminary Official Statement is tentative

as to what amounts and maturities of the Refunded Bonds shall be refunded and will not be finalized until the sale

of the Bonds.

PURPOSE OF THE PRIOR BONDS

The Refunded Bonds were issued by the Corporation for the purpose of refinancing the Corporation's

outstanding Series 1999 Bonds, Series 2000A Bonds, and Series 2000B Bonds (the "Project").

COMMISSION'S PARTICIPATION

The Commission has determined that the Board is eligible for an average annual participation equal to

approximately $216,538 from the Commission's appropriation by the Kentucky General Assembly which will be

used to meet a portion of the debt service of the Bonds. The plan for financing the Project will require the

Commission to pay approximately fifty percent (50%) of the debt service of the Bonds.

The Participation Agreement to be entered into with the Board will be limited to the biennial budget

period of the Commonwealth of Kentucky, with the first such biennial period terminating on June 30, 2018. The

right is reserved in the Commission to terminate the commitment to pay the agreed participation every two years

thereafter. The obligation of the Commission to make payments of the agreed participation shall be automatically

renewed each two years thereafter unless the Commission gives notice to the Board of its intention not to

participate not less than sixty days prior to the end of the biennium. However, the Commission has expressed its

intention to continue to pay the agreed participation in successive biennial budget periods until the Bonds are

retired, but the Commission is not required to do so.

STATE INTERCEPT

Under the terms of the Lease, and any renewal thereof, the Board has agreed so long as the Bonds remain

outstanding, and in conformance with the intent and purpose of KRS 157.627(5) and KRS 160.160(5), in the event

of a failure by the Board to pay the rentals due under the Lease, and unless sufficient funds have been transmitted

to the Paying Agent, or will be so transmitted, for paying said rentals when due, the Board has granted under the

terms of the Lease to the Corporation the right to notify and request the Kentucky Department of Education to

withhold from the Board a sufficient portion of any undisbursed funds then held, set aside, or allocated to the

Board and to request said Department or Commissioner of Education to transfer the required amount thereof to

the Paying Agent for the payment of such rentals.

8

ESTIMATED BOND DEBT SERVICE

The following table shows by fiscal year the current bond payments of the Board. The plan of financing

provides for the Board to meet approximately 50% of the debt service of the Bonds.

Fiscal Current Series ----- Series 2016B Revenue Refunding Bonds ----- Total

Year Local 2016B Local

Ending Bond New Principal Interest Total SFCC Local Bond

June 30 Payments Construction Portion Portion Payment Portion Portion Payments

2017 $18,140,760 $373,992 $115,000 $25,886 $140,886 $69,739 $140,886 $18,414,322

2018 $18,148,020 $1,416,546 $3,205,000 $138,143 $3,343,143 $1,654,856 $3,343,143 $19,463,590

2019 $18,149,640 $1,408,497 $3,585,000 $101,504 $3,686,504 $1,824,819 $3,686,504 $19,456,653

2020 $18,148,802 $1,405,297 $3,580,000 $57,620 $3,637,620 $1,800,622 $3,637,620 $19,450,713

2021 $18,147,716 $1,401,895 $2,290,000 $17,175 $2,307,175 $1,142,052 $2,307,175 $19,445,964

2022 $18,144,456 $1,403,247 $19,547,703

2023 $18,144,765 $1,404,296 $19,549,061

2024 $18,149,195 $1,404,597 $19,553,792

2025 $15,106,982 $1,700,948 $16,807,931

2026 $15,108,281 $1,707,971 $16,816,252

2027 $13,202,115 $2,093,415 $15,295,530

2028 $4,499,102 $2,604,130 $7,103,232

2029 $4,504,513 $2,598,753 $7,103,266

2030 $3,007,080 $2,607,758 $5,614,838

2031 $3,008,480 $2,607,134 $5,615,614

2032 $1,400,369 $2,614,408 $4,014,778

2033 $1,400,369 $2,617,953 $4,018,322

2034 $879,763 $2,632,483 $3,512,246

2035 $884,763 $2,627,852 $3,512,614

2036 $882,788 $2,638,921 $3,521,709

2037 $2,668,391 $2,668,391

TOTALS: $209,057,958 $41,938,484 $12,775,000 $340,328 $13,115,328 $6,492,087 $13,115,328 $250,486,519

Note: Numbers rounded to the nearest $1.00. Estimated Net Interest Cost of 1.80%

ESTIMATED USE OF BOND PROCEEDS

The table below shows the estimated sources of funds and uses of proceeds of the Bonds, other than any

portions thereof representing accrued interest:

Sources:

Par Amount of Bonds $12,775,000.00

Total Sources $12,775,000.00

Uses:

Deposit to Escrow Fund $12,555,150.00

Underwriter's Discount (1%) 127,750.00

Cost of Issuance 92,100.00

Total Uses $12,775,000.00

9

DISTRICT STUDENT POPULATION

Selected school census, enrollment and average daily attendance for the Boone County School District

is as follows:

Average Daily Average DailyYear Attendance Year Attendance

1990-91 9,396.7 2003-04 13,135.41991-92 9,374.3 2004-05 14,688.31992-93 9,739.9 2005-06 15,368.21993-94 9,918.3 2006-07 15,972.51994-95 10,246.6 2007-08 16,379.31995-96 10,358.5 2008-09 16,829.71996-97 10,653.5 2009-10 16,858.11997-98 10,993.9 2010-11 18,014.61998-99 10,993.9 2011-12 17,791.11999-00 11,738.9 2012-13 18,037.62000-01 12,067.6 2013-14 18,232.82001-02 12,463.2 2014-15 18,399.62002-03 12,877.2 2015-16 18,435.5

______________

Source: Kentucky State Department of Education.

STATE SUPPORT

Support Education Excellence in Kentucky (SEEK). In determining the cost of the program to Support

Education Excellence in Kentucky (SEEK), the statewide guaranteed base funding level is computed by dividing

the amount appropriated by the prior year's statewide average daily attendance. The SEEK fund is a guaranteed

amount of money per pupil in each school district of Kentucky. The current SEEK allotment is $3,827 per pupil.

The $100 capital outlay allotment per each average daily attendance is included within the guaranteed amounts.

Each district's base funding from the SEEK program is adjusted for the number of at-risk students, the number and

types of exceptional children in the district, and cost of transporting students from and to school in the district.

Capital Outlay Allotment. The per pupil capital outlay allotment for each district from the public school

fund and from local sources shall be kept in a separate account and may be used by the district only for capital

outlay projects approved by the State Department of Education. These funds shall be used for the following capital

outlay purposes:

a. For direct payment of construction costs.

b. For debt service on voted and funding bonds.

c. For payment or lease-rental agreements under which the board will eventually acquire ownership

of the school plant.

d. For retirement of any deficit resulting from over-expenditure for capital construction, if such

deficit resulted from certain declared emergencies.

e. As a reserve fund for the above named purposes, to be carried forward in ensuing budgets.

The allotment for each school board of education in the Commonwealth for fiscal year 1978-79 was

$1,800 per classroom unit. The 1979 Session of the Kentucky General Assembly approved increases in this

allotment in 1979-80 to $1,900 per classroom unit. This rate remained unchanged in 1980-81. The 1981 Session

of the Kentucky General Assembly decreased the allotment per classroom to $1,800 and this allotment rate did

not change from the 1981-82 rate, until the 1990-91 school year. Beginning with 1990-91, the Capital Outlay

allotment for each district is based on $100 per average daily attendance.

10

The following table shows the computation of the capital outlay allotment for the Boone County School

District for certain preceding school years. Beginning 1990-91, the allotment is based on average daily attendance

as required by law.

Capital Outlay Capital OutlayYear Allotment Year Allotment

1990-91 939,670.0 2003-04 1,313,540.01991-92 937,430.0 2004-05 1,468,830.01992-93 973,990.0 2005-06 1,536,820.01993-94 991,830.0 2006-07 1,597,250.01994-95 1,024,660.0 2007-08 1,637,930.01995-96 1,035,850.0 2008-09 1,682,969.01996-97 1,065,350.0 2009-10 1,685,809.01997-98 1,099,390.0 2010-11 1,801,458.01998-99 1,099,390.0 2011-12 1,779,107.01999-00 1,173,890.0 2012-13 1,803,760.02000-01 1,206,760.0 2013-14 1,823,283.02001-02 1,246,320.0 2014-15 1,839,955.02002-03 1,287,720.0 2015-16 1,843,552.0

If the school district has no capital outlay needs, upon approval from the State, the funds can be used for

school plant maintenance, repair, insurance on buildings, replacement of equipment, purchase of school buses and

purchase of modern technological equipment for educational purposes. If any district has a special levy for capital

outlay or debt service that is equal to the capital outlay allotment or a proportionate fraction thereof, and spends

the proceeds of the levy for eligible purposes, the State may authorize the district to use all or a proportionate

fraction of its capital outlay allotment for current expenses (school districts which use capital outlay allotments

to meet current expenses are not eligible to participate in the School Facilities Construction Commission funds).

Facilities Support Program of Kentucky. School districts may be eligible to participate in the Facilities

Support Program of Kentucky (FSPK), subject to the following requirements:

1) The district must have unmet needs as set forth and approved by the State Department of

Education in a School Facilities Plan;

2) The district must commit to establish an equivalent tax rate of at least 5 cents, in addition to the

30 cents minimum current equivalent tax rate; and,

3) The new revenues generated by the 5 cent addition, must be placed in a restricted account for

school building construction bonding.

LOCAL SUPPORT

Homestead Exemption. Section 170 of the Kentucky Constitution was amended at the General Election

held November 2, 1971, to exempt from property taxes $6,500 of value of single unit residential property of

taxpayers 65 years of age or older. The 1972 General Assembly amended KRS Chapter 132 to permit counties

and school districts to adjust their local tax revenues lost through the application of this Homestead Exemption.

The "Single Unit" qualification has been enlarged to subsequent sessions of the General Assembly to provide that

such exemption shall apply to such property maintained as the permanent resident of the owner and the dollar

amount has been construed to mean $6,500 in terms of the purchasing power of the dollar in 1972. Every two years

thereafter, if the cost of living index of the U.S. Department of Labor has changed as much as 1%, the maximum

exemption shall be adjusted accordingly. Under the cost of living formula, the maximum was increased to $36,900

effective January 1, 2015.

11

Limitation on Taxation. The 1979 Special Session of the Kentucky General Assembly enacted House

Bill 44 which provides that no school district may levy a general tax rate, voted general tax rate, or voted building

tax rate which would generate revenues that exceeds the previous years revenues by four percent (4%).

The 1990 Regular Session of the Kentucky General Assembly in enacting the "School Reform" legislative

package amended the provisions of KRS 160.470 which prohibited school districts from levying ad valorem

property taxes which would generate revenues in excess of 4% of the previous year's revenues without said levy

subject to recall to permit exceptions to the referendum under (1) KRS 160.470(12) [a new section of the statute]

and (2) an amended KRS 157.440.

Under KRS 160.470(12)(a) for fiscal years beginning July 1, 1990 school districts are required to levy

a "minimum equivalent tax rate" of thirty cents ($.30) for general school purposes. The equivalent tax rate is

defined as the rate which results when the income collected during the prior year from all taxes (including

occupational or utilities) levied by the district for school purposes divided by the total assessed value of property

plus the assessment for motor vehicles certified by the State Revenue Cabinet. Failure to levy the minimum

equivalent rate subjects the board of the district to removal.

The exception provided by KRS 157.440(1)(a) permits school districts to levy an equivalent tax rate as

defined in KRS 160.470(12)(a) which will produce up to 15% of those revenues guaranteed by the program to

support education excellence in Kentucky. Levies permitted by this section of the statute are not subject to public

hearing or recall provisions as set forth in KRS 160.470.

Local Thirty Cents Minimum. Effective for school years beginning after June 30, 1990, the board of

education of each school district shall levy a minimum equivalent tax rate of thirty cents ($0.30) for general school

purposes. If a board fails to comply, its members shall be subject to removal from office for willful neglect of duty.

Additional 15% Not Subject to Recall. Effective with the school year beginning July 1, 1990, each school

district may levy an equivalent tax rate which will produce up to 15% of those revenues guaranteed by the SEEK

program. Effective with the 1990-91 school year, the State will equalize the revenue generated by this levy at one

hundred fifty percent (150%) of the statewide average per pupil equalized assessment. For 1993-94 and thereafter,

this level is set at $225,000. The additional 15% rate levy is not subject to the public hearing or recall provisions.

Assessment Valuation. No later than July 1, 1994, all real property located in the state and subject to local

taxation shall be assessed at one hundred percent (100%) of fair cash value.

Special Voted and Other Local Taxes. Any district may, in addition to other taxes for school purposes,

levy not less than four cents nor more than twenty cents on each one hundred dollars ($100) valuation of property

subject to local taxation, to provide a special fund for the purchase of sites for school buildings and the erection,

major alteration, enlargement, and complete equipping of school buildings. In addition, districts may levy taxes

on tangible and intangible property and on utilities, except generally any amounts of revenues generated above that

provided for by House Bill 44 is subject to voter recall.

12

Local Tax Rates, Property Assessments and Revenue Collections

Combined Total PropertyTax Equivalent Property Revenue Year Rate Assessment Collections

1991-92 47.6 3,093,111,609 14,723,2111992-93 48.4 3,337,989,791 16,155,8711993-94 50.4 3,571,349,527 17,999,6021994-95 55.2 3,623,955,896 20,004,2371995-96 55.6 4,163,581,217 23,149,5121996-97 55.6 4,609,991,150 25,631,5511997-98 58.3 5,054,408,973 29,467,2041998-99 58.3 5,988,197,149 34,911,1891999-00 55.1 6,747,900,016 37,180,9292000-01 53.1 7,737,010,893 41,083,5282001-02 55.1 8,022,999,321 44,206,7262002-03 55.5 7,913,937,519 43,922,3532003-04 55.5 9,032,451,412 50,130,1052004-05 62.2 9,712,886,132 60,414,1522005-06 64 10,367,112,210 66,349,5182006-07 60.5 10,768,919,539 65,151,9632007-08 64 11,870,223,370 75,969,4302008-09 61.4 12,412,043,004 76,209,9442009-10 61.4 12,415,820,080 76,233,1352010-11 66 12,473,734,320 82,326,6472011-12 70.7 12,595,865,161 89,052,7672012-13 71 12,527,246,643 88,943,4512013-14 75 12,519,676,011 93,897,5702014-15 76.7 12,664,486,928 97,136,6152015-16 75 13,179,554,404 98,846,658

Overlapping Bond Indebtedness

The following table shows any other overlapping bond indebtedness of the Boone County School

District or other issuing agency within the County as reported by the State Local Finance Officer for the period

ending June 30, 2013.

Original Amount CurrentPrincipal of Bonds Principal

Issuer Amount Redeemed Outstanding

County of Boone General Obligation $49,586,972 $16,774,957 $32,812,015 Pollution Control Revenue $154,715,000 $0 $154,715,000 Multi-Family Housing Revenue $6,435,000 $0 $6,435,000 Residential Revenue $8,290,000 $0 $8,290,000 Sewer Public Corporation $14,100,000 $9,905,000 $4,195,000 Public Project Public Corp. $8,060,000 $7,390,000 $670,000 Refinancing Revenue $18,785,000 $5,480,000 $13,305,000 Manufacturing Facility Revenue $1,600,000 $410,000 $1,190,000 Fire Station Renewable $554,845 $505,771 $49,074 Computer hardware & Software Renewable $3,000,000 $2,675,974 $324,026

13

City of Florence General Obligation $38,430,000 $6,410,000 $32,020,000 Residential Revenue $18,230,000 $17,315,000 $915,000 Recreational Facilities Public Corp. $5,005,000 $3,330,000 $1,675,000 Office Building Public Corp. $12,610,000 $3,895,000 $8,715,000 Senior Citizens Housing Revenue $8,225,000 $2,025,000 $6,200,000 Housing Facilities Revenue $8,825,000 $1,775,000 $7,050,000 Refinancing Revenue $2,520,000 $1,330,000 $1,190,000 Water & Sewer Revenue $3,670,000 $1,190,000 $2,480,000

City of Union General Obligation $375,000 $33,355 $341,645

City of Walton General Obligation $2,000,000 $220,000 $1,780,000 Water & Sewer Revenue $1,562,000 $1,112,000 $450,000 KIA Public Corporation $1,158,346 $749,368 $408,978

Special Districts Belleview/McVille Fire Dept. $678,445 $132,000 $546,445 Boone County Extension District. $1,100,000 $855,379 $244,621 Boone County Public Properties Corp. $24,700,000 $5,065,000 $19,635,000 Boone County Water District $7,925,000 $3,935,000 $3,990,000 Boone-Florence Water Commission $79,920,000 $11,660,000 $68,260,000 Burlington Fire Protection District $1,500,000 $660,063 $839,937 Hebron Fire Protection District $4,150,000 $2,604,429 $1,545,571 Petersburg Fire District $117,000 $66,917 $50,083 Point Pleasant Fire District $850,327 $70,000 $780,327 Union Community Ambulance District $2,210,503 $3,751,665 $1,541,162 Union Fire Protection District $2,090,175 $606,993 $1,483,182 Walton Fire District $9,650,059 $1,768,226 $7,881,833

Totals: $502,628,672 $110,619,773 $392,008,899

___________________________

Source: 2013 Kentucky Local Debt Report.

14

SEEK Allotment

The Board has reported the following information as to the SEEK allotment to the District, and as

provided by the State Department of Education. These receipts are compared to the 1989-90 fiscal year funding

prior to enactment of the Kentucky Education Reform Act:

Base Local Total State &SEEK Funding Tax Effort Local Funding

1991-92 18,775,088 14,723,211 33,498,2991992-93 18,786,921 16,155,871 34,942,7921993-94 19,440,829 17,999,602 37,440,4311994-95 20,694,071 20,004,237 40,698,3081995-96 22,108,447 23,149,512 45,257,9591996-97 21,394,221 25,631,551 47,025,7721997-98 22,890,173 29,467,204 52,357,3771998-99 21,789,907 34,911,189 56,701,0961999-00 23,123,726 37,180,929 60,304,6552000-01 23,802,763 41,083,528 64,886,2912001-02 24,455,575 44,206,726 68,662,3012002-03 28,439,157 43,922,353 72,361,5102003-04 28,620,931 50,130,105 78,751,0362004-05 31,311,345 60,414,152 91,725,4972005-06 35,737,476 66,349,518 102,086,9942006-07 38,738,500 65,151,963 103,890,4632007-08 43,620,847 75,969,430 119,590,2772008-09 45,160,476 76,209,944 121,370,4202009-10 42,824,275 76,233,135 119,057,4102010-11 47,929,501 82,326,647 130,256,1482011-12 50,766,111 89,052,767 139,818,8782012-13 51,797,653 88,943,451 140,741,1042013-14 52,794,640 93,897,570 146,692,2102014-15 55,734,220 97,136,615 152,870,8352015-16 56,946,386 98,846,658 155,793,044

(1) Support Education Excellence in Kentucky (SEEK) replaces the minimum foundation program

and power equalization funding. Capital Outlay is now computed at $100 per average daily

attendance (ADA). Capital Outlay is included in the SEEK base funding.

(2) The Board established a current equivalent tax rate (CETR) of $0.750 for FY 2015-16. The

equivalent tax rate" is defined as the rate which results when the income from all taxes levied by

the district for school purposes is divided by the total assessed value of property plus the

assessment for motor vehicles certified by the Commonwealth of Kentucky Revenue Cabinet.

State Budgeting Process

i) Each district board of education is required to prepare a general school budget on forms

prescribed and furnished by the State Board for Elementary and Secondary Education, showing

the amount of money needed for current expenses, debt service, capital outlay, and other

necessary expenses of the school during the succeeding fiscal year and the estimated amount that

will be received from all sources.

ii) By September 30 of each year, after the district receives its tax assessment data from the

Department of Revenue and the State Department of Education, 3 copies of the budget are

forwarded to the State Department for approval or disapproval.

iii) The State Department of Education has adopted a policy of disapproving a school budget if it is

financially unsound or fails to provide for:

15

a) payment of maturing principal and interest on any outstanding voted school

improvement bonds of the district or payment of rental in connection with any

outstanding school building revenue bonds issued for the benefit of the school district;

or

b) fails to comply with the law.

CONTINUING DISCLOSURE

As a result of the Board and issuing agencies acting on behalf of the Board having, at the time the Bonds

referred to herein are offered for public sale, outstanding municipal securities in excess of $1,000,000, the

Corporation and the Board will enter into a written agreement for the benefit of the holders of the Bonds

whereunder said Corporation and Board will agree to comply with the provisions of the municipal securities

disclosure rules set forth in Securities and Exchange Commission Rule 15c2-12, as amended (the "Rule"), by filing

certain financial information, operating data and reportable event notices with the Electronic Municipal Market

Access (EMMA) System maintained by the Municipal Securities Rule Making Board. The specific nature of the

information to be contained in such filings with EMMA is set forth in Appendix C - "FORM OF CONTINUING

DISCLOSURE AGREEMENT" to the Preliminary Official Statement.

The Board and the Corporation have previously entered into continuing disclosure undertakings pursuant

to the Rule. While the Board and Corporation are current with the filings required by such undertakings, certain

filings were made beyond the required filing dates. As a result, the Board has filed Material Event Notices

indicating its failure to file on a timely basis the following information:

(1) An upgrade in Moody's rating of the Corporation’s bonds from "Aa3" to "Aa2", effective as of

April 23, 2010;

(2) A downgrade in Moody's rating of the Corporation’s bonds from "Aa2" to "Aa3", effective as

of March 30, 2011;

(3) An update to operating data and financial information for fiscal years ending June 30, 2009,

2010, 2011, 2012 and 2013; and

(4) Annual audited financial statements for the fiscal year ending June 30, 2010.

The Annual Financial Information for FY ending June 30, 2012 through June 30, 2015 were filed after

the deadline (December 1).

The Board has adopted new procedures to assure timely and complete filings in the future with regard to

the Rule.

TAX EXEMPTION

Bond Counsel is of the opinion that:

(A) Interest on the Bonds is exempt from income taxation and the Bonds are exempt from ad valorem

taxation by the Commonwealth of Kentucky and all of its political subdivisions.

(B) Interest on the Bonds is excludable from gross income under the Internal Revenue Code of 1986,

as amended (the "Code"). Furthermore, interest on the Bonds is not a specific item of tax preference for purposes

of the federal alternative minimum tax imposed on individuals and corporations.

16

The Corporation has covenanted to comply with the applicable provisions of the Code, and such

compliance by the Corporation is necessary to maintain the federal income tax status described above. No opinion

is expressed regarding other federal tax consequences arising with respect to Bonds.

LITIGATION

There is no litigation presently pending against the Corporation or the District, nor to the knowledge of

the officials of the Corporation or the District is there any litigation threatened, which questions or affects the

validity of the Bonds or any proceedings or transactions relating to the issue, sale and delivery thereof.

APPROVAL OF LEGALITY

Legal matters incident to the authorization and issuance of the Bonds are subject to the approving legal

opinion of Keating Muething & Klekamp PLL, Bond Counsel. The form of the approving legal opinion of Bond

Counsel will appear on each printed Bond.

NO LEGAL OPINION EXPRESSED AS TO CERTAIN MATTERS

Bond Counsel has reviewed the information contained in the Official Statement describing the Bonds and

the provisions of the Bond Resolution and related proceedings authorizing the Bonds, but Bond Counsel has not

reviewed any of the financial data, computations, tabulations, balance sheets, financial projections, and general

information concerning the Corporation or District, and expresses no opinion thereon, assumes no responsibility

for same and has not undertaken independently to verify any information contained herein.

BOND RATING

As noted on the cover page of this Official Statement, Moody's Investors Service has given the Bonds the

indicated rating. Such rating reflects only the respective views of such organization. Explanations of the

significance of the rating may be obtained from the rating agency. There can be no assurance that such rating will

be maintained for any given period of time or will not be revised or withdrawn entirely by the rating agency, if in

their judgement circumstances so warrant. Any such downward revision or withdrawal of such rating may have

an adverse effect on the market price of the Bonds.

FINANCIAL ADVISOR

Prospective bidders are advised that Ross, Sinclaire & Associates, LLC ("Ross Sinclaire") has been

employed as Financial Advisor in connection with the issuance of the Bonds. Ross Sinclaire's fee for services

rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery thereof. Bidders may

submit a bid for the purchase of the Bonds at the time of the advertised public sale, either individually or as a

member of a syndicate organized to submit a bid for the purchase of the Bonds.

APPROVAL OF OFFICIAL STATEMENT

The Corporation has approved and caused this "Official Statement" to be executed and delivered by its

President. In making this "Official Statement" the Corporation relied upon information furnished to it by the Board

of Education of the Boone County School District and does not assume any responsibility as to the accuracy or

completeness of any of the information in this Official Statement except as to copies of documents denominated

"Official Terms and Conditions" and "Bid Form." The financial information supplied by the Board of Education

is represented by the Board of Education to be correct. The Corporation deems this preliminary Official Statement

to be final for purposes of Securities Exchange Commission Rule 15c2-12(b)(1) as qualified by the cover hereof.

17

No dealer, broker, salesman, or other person has been authorized by the Corporation, the Boone County

Board of Education or the Financial Advisor to give any information or representations, other than those contained

in this Official Statement, and if given or made, such information or representations must not be relied upon as

having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the

solicitation of any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation

or sale. Except when otherwise indicated, the information set forth herein has been obtained from the Kentucky

Department of Education and the Boone County School District and is believed to be reliable; however, such

information is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by

the Financial Advisor or by Counsel. The delivery of this Official Statement at any time does not imply that

information herein is correct as of any time subsequent to the date hereof.

This Official Statement does not, as of its date, contain any untrue statement of a material fact or omit to

state a material fact which should be included herein for the purpose for which the Official Statement is to be used

or which is necessary in order to make the statements contained herein, in the light of the circumstances under

which they were made, not misleading in any material respect.

By /s/ President

By /s/ Secretary

APPENDIX A

Boone County School District Finance CorporationSchool Building Refunding Revenue Bonds

Series 2016

Demographic and Economic Data

(A-1)

NORTHERN KENTUCKY

The Northern Kentucky Area, covering a total land area of 559 square miles, is composed of Boone,Campbell, and Kenton Counties; and is ideally situated along and adjacent to the south bank of the Ohio River,immediately south of Cincinnati, Ohio. These three counties are a part of the Cincinnati Primary MetropolitanStatistical Area, which had an estimated 2013 population of 378,575.

The Northern Kentucky Area forms the northern apex of an industrial triangle anchored by Louisville onthe southwest and Lexington on the southeast. Within the triangle is more than one-third of the state's populationand nearly one-half of its manufacturing jobs. The interstate highway system places these three metropolitan areaswithin less than two hours driving distance from each other.

The Economic Framework

The total number of Boone, Campbell, and Kenton Counties residents employed in 2013 averaged167,541. Manufacturing in the three-county area reported 18,904 employees; trade, transportation, and utilitiesprovided 39,196 jobs; 67,780 people were employed in services; public administration accounted for 9,246employees; construction firms provided 4,389 jobs; 9,670 people were working in financial activities; and theinformation industry accounted for 1,712 jobs.

Labor Supply

There is a current estimated labor supply of 64,472 persons available for industrial jobs in the NorthernKentucky portion of the labor market area. In addition, from 2014 through 2017, 20,657 young persons in the areawill become 18 years of age and potentially available for industrial jobs.

Transportation

Major highways serving Boone, Campbell, and Kenton Counties include Interstates 71, 75, 275, and 471;U.S. Highways 42/127, 25, and 27. The Greater Cincinnati-Northern Kentucky International Airport, located inBoone County, Kentucky, provides commercial airline service. The airport is a major hub for Delta Airlines. TheSouthern Railway System and CSX Transportation provide main line rail service to the area. Several barge andtowing companies provide barge transportation on the Ohio River. The Port of Cincinnati extends 30 miles alongboth banks of the Ohio River.

Power and Fuel

Electric power is provided to Boone, Campbell, and Kenton Counties by Duke Energy Kentucky, E. ONUS/KU, East Kentucky Power Cooperative and Owen Electric Cooperative, Inc. Natural gas service is providedto major portions of the three-county area by Duke Energy Kentucky.

LABOR MARKET STATISTICS

The Northern Kentucky Labor Market Area includes Boone, Campbell and Kenton Counties and theadjoining Kentucky counties of Gallatin, Grant, and Pendleton. The Labor Market Area is supplemented by theOhio counties of Hamilton, Butler, Clermont and Warren; and Dearborn County in Indiana.

Population

2011 2012 2013Labor Market Area 1,769,701 1,775,363 1,783,145

Northern Kentucky 372,988 375,618 378,575

________________________

Source: U.S. Department of Commerce, Bureau of the Census.

(A-2)

Population Projections

2020 2025 2030Northern Kentucky 414,033 435,566 455,700

_________________

Source: Kentucky Data Center, University of Louisville and Kentucky Cabinet for Economic Development.

EDUCATION

Public Schools

Boone Walton-VeronaCounty Independent

Total Enrollment (2013-2014) 19,567 1,522Pupil-Teacher Ratio (2013-2014) 16.1 - 1 15.7 - 1

Vocational - Technical Schools

EnrollmentInstitution Location (2013-2014)

Chapman Career & Tech. Education Ctr. Ft. Thomas, KY 555

Boone County ATC Hebron, KY 161

Kenton County Academies of Innovation Ft. Mitchell, KY 680

Carroll County ATC Carrollton, KY 372

Harrison County ATC Cynthiana, KY 502

Mason County ATC Maysville, KY 120

Campbell County ATC Alexandria, KY 228

Colleges and Universities

EnrollmentInstitution Location (Fall 2012)

College of Mount St. Joseph Cincinnati, OH 2,294

Thomas More College Crestview Hills, KY 1,758

Northern Kentucky University Highland Heights, KY 15,634

Georgetown College Georgetown, KY 1,543

Beckfield College Florence, KY 758

Gateway Community & Tech College Covington, KY 4,648

Brown Mackie College Ft. Mitchell, KY 644

Maysville Community College Maysville, KY 4,634

(A-3)

LARGEST EMPLOYERS(Tri-County)

Firm Product EmploymentAlexandria

Hillshire Brands Sausage & hot dogs, deli meats 600

Covington

Club Chef LLC Processor of fresh cut produce 573

Fidelity Investments Financial Services 3,900

Erlanger

Convergys Customer care and technical support callcenter

600

DHL Airfreight delivery service 1,200

Toyota Motor Engineering and Mfg. Corporate headquarters and engineering 1,700

Florence

Citicorp Credit Services Financial services customer service center 2,600

Mazak Corporation Machine tools; general machining &assembly, administration, warehouse,engineering, technology center, headquarters

657

Mubea Inc. Automotive component parts (springs, hoseclamps, stabilizer bars)

1,400

Regal Power Transmission Solutions Distribution, warehouse and manufactureconveying products by extruding, moldingand milling

518

Robert Bosch Automotive Steering LLC Steering gears for car and light truck market 1,200

Schwan’s Global Supply Chain Inc. Frozen pizzas 750

Hebron

CVG1 - Amazon.com.kydc.LLC Distribution center 775

CVG2 - Amazon.com.kydc.LLC Wholesale distribution 800

CVG3 - Amazon.com.kydc.LLC Wholesale distribution center 1,100

Fives Machining Systems Inc. Regional HQ and advanced manufacturingtools for the aerospace, heavy equipment,energy, and general machining markets

450

IT Solutions Sales Co. Inc. Headquarters, computer service & sales 580

Levi Strauss & Co. Distribution/customer service center;distribute apparel

500

Toyota North American Parts Center KY Parts warehouse/distribution center/hub 471

Independence

Cengage Learning Distribution Center Book distribution center 800

_____________Source: Kentucky Cabinet for Economic Development (1/08/2016).

APPENDIX B


Series 2016

Audited Financial Statements for FY Ending June 30, 2015

Boone County School District

Financial Statements With Supplementary Information Year Ended June 30, 2015 With Independent Auditors' Report

BOONE COUNTY SCHOOL DISTRICT

June 30, 2015

Table of Contents

Independent Auditors' Report

Management's Discussion and Analysis (MD&A)

Basic Financial Statements:

District Wide Financial Statements:

Statement of Net Position - District Wide

Statement of Activities - District Wide

Fund Financial Statements:

Balance Sheet - Governmental Funds

Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position

Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities

Statement of Net Position - Proprietary Funds

Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds

Statement of Cash Flows - Proprietary Funds

Statement of Net Position - Fiduciary Funds

Notes to the Financial Statements

1-2

3-7

8

9

10

11

12

13

14

15

16

17

18-39


June 30, 2015

Table of Contents (Continued)

Supplementary Information:

Combining Statements - Nonmajor Funds

Combining Balance Sheet - Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual - General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual - Special Revenue Fund

Statement of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual - Construction Fund

Statement of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual - Debt Service Fund

Statement of Receipts, Disbursements and Fund Balances - Bond and Interest Redemption Funds

Statement of Receipts, Disbursements and Fund Balances - Boone County High School Activity Fund

Statement of Receipts, Disbursements and Fund Balances - Conner High School Activity Fund

Statement of Receipts, Disbursements and Fund Balances - Copper High School Activity Fund

Statement of Receipts, Disbursements and Fund Balances - Larry A Ryle High School Activity Fund

Statement of Receipts, Disbursements and Fund Balances - School Activity Funds

Schedule of the District's Proportionate Share of the Net Pension Liability - KTRS

Schedule of District Contributions - KTRS

Schedule of the District's Proportionate Share of the Net Pension Liability - CERS

Schedule of District Contributions - CERS

Schedule of Expenditures of Federal Awards

Notes to the Schedule of Expenditures of Federal Awards

40

41

42

43

44

45

46

47-49

50-52

53-54

55-56

57

58

59

60

61

62

63


June 30, 2015

Table of Contents (Continued)

Independent Auditors' Report on Internal Control over Financial Reporting and on Cornpliance and Other Matters Based on an Audit of Financial Staternents Perforrned in Accordance with Government Auditing Standards

Independent Auditors' Report on Cornpliance for Each Major Prograrn and on Internal Control over Cornpliance Required by OMB Circular A-133

Schedule of Findings and Questioned Costs

Managernent Letter Cornrnents

64-65

66-67

68-69

70-76

BARNES DENNIG Accounting · Tax ' Business Insight

Independent Auditors' Report

To the Members of the Board of Education Boone County School District Florence, Kentucky

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Boone County School District as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Boone County School District's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Boone County School District, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

OHIO OFFICE: 150 East Fourth Street I Cincinnati. OH 45202 I Phone: (513) 241-8313 I Fax: (513) 241-8303 KENTUCKY OFFICE 2617 Legends Way I Crestview Hills. KY 41017 I Phone (859) 344-6400 I Fax (859) 578-7522

www.BarnesDennig.com lndependent Member. PKF International

Other Matters

Change in Accounting Principle

BARNES DENNIG

Independent Auditors' Report (Continued)

As described in note 18 to the financial statements, the District adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Our opinion is not modified with respect to this item.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such infonnation, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United states of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose offorming opinions on the financial statements that collectively comprise the Boone County School District's basic financial statements. The management's discussion and analysis and combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 13, 2015 on our consideration of the Boone County School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Boone County School District's internal control over financial reporting and compliance.

Crestview Hills, Kentucky N ovem ber 13, 2015


Management's Discussion and Analysis (MD&A) Year Ended June 30,2015

As management of the Boone County School District (District), we offer readers of the District's financial statement this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2015. We encourage readers to consider the information presented here in conjunction with additional information found within the body of the audit.

FINANCIAL HIGHLIGHTS

Boone County Schools' student enrollment reached 20,570 students in the 2014-15 fiscal year, an increase of 292 students since the previous school year. Over the last ten years the District's membership has grown by approximately 25%. These students are housed in 23 schools including 4 high schools, 5 middle schools and 14 elementary schools. More than half of these schools exceed their student capacity level.

In the most recent years student growth has occurred at moderate levels. To accommodate the growth, the District is making plans to construct a new middle school, a new wing on the largest high school and renovate an existing elementary school. Bonds are issued as the District modifies its facilities consistent with a long-range facilities plan that is established with community input and in keeping with Kentucky Department of Education (KDE) stringent compliance regulations.

The General Fund recognized $132.9 million in revenue consisting primarily of local property, occupational license, utilities, and motor vehicle taxes and the state program (SEEK) allocation. An additional $30 million representing payments made on the District's behalf, by the State, for teachers' retirement contribution and employees' health insurance was recognized as revenue. The following shows recent trends in general fund revenues on a per pupil basis (average daily attendance). Current year's revenues show a 2.7% increase in the amount collected.

2014-2015 2013-2014 2012-2013

$7,415 $7,288 $7,094

The District administered over $10 million in Federal, State and local grants and other programs during the year.

The state's level of support (SEEK) was increased from a guaranteed base of $3,827 to $3,911 per pupil. Funding for Boone County Schools, after adjustments and local effort, was at $3,029, an increase of $133 per pupil. Per pupil funding is based on prior year average daily attendance factored with a current year growth rate. The comparative statewide average was $4,071. The SEEK allocation to Boone County Schools continues to be among the lowest in the state. The formula calculating the allocation becomes punitive for districts experiencing growth and rewards districts in economic decline. Because property values in the Boone County School District did not appreciate, funding through SEEK increased by 4.5%.

Boone County Board of Education collected $10.0 million in utility taxes and $9.6 million in occupational license taxes, indicative of a relatively stable economy in Boone County. These permissive taxes account for 12% of general fund revenues providing some relief in the funding gap created by the state's funding formula. Without permissive tax revenues, the Boone County Board of Education would face severe funding deficits, further reducing the per pupil revenues to a level lowest in the state.

3



(Continued)

FINANCIAL HIGHLIGHTS (Continued)

General Fund expenditures were $162 million. Salaries and related costs total $112.3 million or 69% of the general operating expenditures. Included in this amount is $30 million in retirement contributions and insurance benefits paid by the state on the District's behalf.

Boone County Schools are celebrating the results of the Kentucky Performance Rating for Educational Progress (K-PREP) released by the Kentucky Department of Education. The results show that Boone County is a distinguished district and in the top 10% of all districts in the Commonwealth.

The success the District has achieved as one of the top performing large school districts in the state is partially credited to the commitment from the city and county governments as well and the business partnerships in the form of donations and other support to our schools. The District has also made a more aggressive effort to obtain competitive grants that will allow the District to achieve and maintain the status of a premier school district.

As of the year ended June 30, 2015, the Boone County Board of Education sustained a stable financial status attributed to conservative spending practices. It is evident the Board has effectively and efficiently managed its resources and at the same time continues to make progress toward education proficiency.

Our primary financial concern continues to be state funding which has not kept up with the increases in operating expenses due to inflation, increased salaries - some of which are a direct result of mandates by the state, and an increasing portion of the retirement shortfall that we have been asked to fund. After many years of not making the necessary contributions to fully fund the Kentucky Teachers' Retirement System (KTRS), the legislature passed along a portion of the funding shortfall to employees and a larger portion to school districts. As a result, our district has paid hundreds of thousands of dollars into the retirement system over the past five years and will pay millions of dollars in the future in an effort to help stabilize the fund. For the first time this year we are also being required to record the portion of the unfunded state liability in our financial statements attributable to our employees, as determined by KTRS. While it remains to be seen if districts, including our own, will end up shouldering more of this deficit over the years to come, if the state does not start responsibly funding the system it can be safely assumed that we will. This will continue to shift more of the responsibility for funding our education system onto the backs of school districts and subsequently local tax payers. The continual erosion of state funding makes it increasingly difficult to maintain the high standard of education and programming that our students deserve without increasing taxes locally. In this climate of shrinking state support the Boone County School District will maintain fiscally responsible policies in order to continue providing quality academic, extra-curricular and community service programs to all of its students

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) district-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.

District-wide financial statements. The district-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

4



(Continued)

FINANCIAL HIGHLIGHTS (Continued)

District-wide financial statements (Continued).

The statement of activities presents information showing how the District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The district-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues (governmental activities). The governmental activities of the District include instruction, support services, operation and maintenance of plant, student transportation and operation of non-instructional services. Fixed assets and related debt is also supported by taxes and intergovernmental revenues.

The district-wide financial statements can be found on pages 8 and 9 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. This is a state mandated uniform system and chart of accounts for all Kentucky public school districts utilizing the MUNIS administrative software. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Fiduciary funds are trust funds established by benefactors to aid in student education, welfare and teacher support. The only proprietary funds are our vending and food service operations and day care operations. All other activities of the District are included in the governmental funds.

The basic governmental fund financial statements can be found on pages 10 through 17 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the district-wide and fund financial statements. The notes to the financial statements can be found on pages 18 through 39 of this report.

DISTRICT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government's financial position. In the case of the District, assets and deferred revenues exceeded liabilities by $106,816,816 as of June 30,2015.

The largest portion of the District's net position reflects its investment in capital assets (i.e. land and improvements, buildings and improvements, vehicles, furniture and equipment); less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The District's financial position is the product of several financial transactions, including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets.

5



(Continued)

DISTRICT-WIDE FINANCIAL ANALYSIS (Continued)

Net Position for the periods ending June 30,2015 and 2014

The following is a summary of net position for the fiscal years ended June 30, 2015 and 2014.

Current assets

Noncurrent assets

Total assets

Deferred outflows

Current liabilities

Noncurrent liabilities

Total liabilities

Net position

I nvestment in capital assets (net of debt)

Restricted

Unrestricted

Total net position

Comments on General Fund Budget Comparisons

$

2015

57,672,738

275,056,393

332,729,131

4,850,640

23,341,364

207,421,381

230,762,745

91,108,430

24,517,606

(8,809,010)

$ 106,817,026

$

2014

54,425,945

281,280,955

335,706,900

26,878,511

185,859,261

212,737,772

84,668,467

14,795,814

23,504,847

$ 122,969,128

• The District's total revenues in the General Fund for the fiscal year ended June 30, 2015, were $166,098,264, net of inter-fund transfers and sale of assets, of $422,240 and $5,684, respectively.

• General Fund budgeted revenue compared to actual revenue varied slightly from line item to line item with the ending actual balance being $5,668,423 more than budget or approximately 3.5% of General Fund Budget. The majority of this variance is the result of the District recording "on-behalf" payments made by the state.

• General Fund actual expenditures were $162,362,715, net of inter-fund transfers of $437,705.

• General Fund actual expenditures were less than budgeted expenditures by $15,610,344.

6



(Continued)

DISTRICT-WIDE FINANCIAL ANALYSIS (Continued)

The following table presents a summary of revenues and expenses for the fiscal years ended June 30, 2015 and 2014.

2015 2014 Revenues

Program revenues Charges for services $ 4,363,500 $ 4,336,005 Operating grants 16,110,169 15,557,153 Capital grants 3,995,629

Total grant revenues 20,473,669 23,888,787

General Revenues Taxes 99,113,368 98,225,649 Grants and entitlements 103,482,881 79,046,462 Earnings on investments 64,284 60,908 Miscellaneous 32,224,467 1,149,646

Total general revenues 234,885,000 178,482,665

Total revenues 255,358,669 202,371,452

Expenses Instructional 123,533,394 103,584,098 Student support services 10,189,252 9,723,846 Staff support 6,475,567 6,125,957 District administration 6,941,783 5,413,706 School administration 11,003,750 10,787,283 Business support 5,185,854 4,405,252 Plant operations 19,017,760 18,565,468 Student transportation 13,994,066 13,943,591 Food service operation 8,209,546 8,598,805 Day care 284,002 422,818 Maker space 40,097 Other 25,791,655 923,113 Interest on long-term debt 6,746,045 7,375,904

Total expenses 237,412,771 189,869,841

Excess of revenues over expenses $ 17,945,898 $ 12,501,611

BUDGETARY IMPLICATIONS

In Kentucky, the public school fiscal year is July 1-June 30; other programs, i.e. some federal programs, operate on a different fiscal calendar, but are reflected in the District overall budget By law, the budget must have a minimum 2% contingency. The District adopted a budget with $8,609,957 in contingency (4.8%). The cash balance for the beginning of the fiscal year was $48,276,171.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

Questions regarding this report should be directed to Mr. Randy Poe, Superintendent (859) 282-2375 or to his representative Mrs. Linda Schild, Finance Officer (859) 282-2938 or by mail to Central Office, 8330 US Highway 42, Florence, Kentucky 41042.

7


Statement of Net Position - District Wide Year Ended June 30,2015

Governmental Business-Type Activities Activities Total

Assets Current:

Cash and cash equivalents $ 46,005,918 $ 6,019,169 $ 52,025,087 Accounts receivable 4,161,410 4,161,410 Interfund receivable 1,223,747 1,223,747 Inventories for consumption 262,494 262,494

Total current 51,391,075 6,281,663 57,672,738

Noncurrent: Construction in progress 337,707 337,707 Nondepreciated capital assets:

Land 12,934,451 12,934,451 Depreciated capital assets:

Land improvements 10,339,723 10,339,723 Buildings and improvements 354,340,549 76,617 354,417,166 Furniture and equipment 47,119,328 4,599,350 51,718,678 Less: accumulated depreciation (150,622,289) (4,069,043) (154,691,332)

Total noncurrent 274,449,469 606,924 275,056,393

T etal assets 325,840,544 6,888,587 332,729,131

Deferred outflows 4,732,987 117,653 4,850,640

Liabilities and Net Position Liabilities

Current: Current portion of bonds payable 13,203,660 13,203,660 Accounts payable 668,800 40,152 708,952 Accrued interest 2,050,560 2,050,560 Accrued sick leave 192,183 192,183 Accrued payroll and related expenses 3,915,053 3,915,053 Assessed KISBIT liability 580,317 580,317 Current portion of capital leases 103,799 103,799 Unearned revenues 1,363,093 1,363,093 Interlund payable 10,316 1,213,431 1,223,747

Total current 22,087,781 1,253,583 23,341,364

Noncurrent: Accrued sick leave 2,079,646 99,624 2,179,270 Capital leases 136,073 136,073 CERS net pension liability 33,175,133 922,867 34,098,000 Bond obligations 171,008,038 171,008,038

Total noncurrent 206,398,890 1,022,491 207,421,381

Total liabilities 228,486,671 2,276,074 230,762,745

Net Position Invested in capital assets, net of related debt 90,501,506 606,924 91,108,430 Restricted 23,797,243 720,363 24,517,606 Unrestricted (12,211,889) 3,402,879 (8,809,010)

Total net position $ 102,086,860 $ 4,730,166 $ 106,817,026

The accompanying notes are an integral part of these financial statements.

8


Statement of Activities - District Wide Year Ended June 30,2015

Net (expense) Revenue and Changes Program Revenues in Net Position

Operating Capital Grants Charges for Grants and and Governmental Business-type

Function/Programs Expenses Services Contributions Contributions Activities Activities Total

Governmental activities: Instructional $ 123,533,394 $ 237,715 $ 7,190,624 $ $ (116,105,055) $ $ (116,105,055) Student support services 10,189,252 244,265 (9,944,987) (9,944,987) Staff support services 6,475,567 627,587 (5,847,980) (5,847,980) District administration 6,941,783 17,543 (6,924,240) (6,924,240) School administration 11,003,750 (11,003,750) (11,003,750) Business support services 5,185,854 211,538 (4,974,316) (4,974,316) Plant operation and maintenance 19,017,760 53,041 (18,964,719) (18,964,719) Student transportation 13,994,066 600,000 1,261,226 (12,132,840) (12,132,840) Community service operations 943,456 45,761 621,214 (276,481 ) (276,481) Facility acquisition and construction 27,583 27,583 27,583 Other 24,848,199 (24,848,199) (24,848,199) Interest on long-term debt 6,746,045 (6,746,045) (6,746,045)

Total governmental activities 228,879,126 883,476 10,254,621 (217,741,029) (217,741,029)

Business-type activities Food service 8,209,546 3,480,024 5,738,948 1,009,426 1,009,426

Daycare 284,002 76,503 (207,499) (207,499) Maker Space 40,097 40,097

Total business-type activities 8,533,645 3,480,024 5,855,548 801,927 801,927

Total school district $ 237,412,771 $ 4,363,500 $ 16,110,169 $ (217,741,029) 801,927 (216,939,102)

General revenues:

Taxes 99,113,368 99,113,368

State and federal sources 103,482,881 103,482,881

Investment earnings 61,413 2,871 64,284

Miscellaneous 31,967,615 264,924 32,232,539

Special items:

Proceeds from sale of assets (8,072) (8,072)

Fund transfer 422,240 (422,240)

Total general and special revenues 235,039,445 (154,445) 234,885,000

Change in net position 17,298,416 647,482 17,945,898

Net position - beginning 117,963,577 5,005,551 122,969,128

Net position adjustment (Note 18) (33,175,133) (922,867) (34,098,000)

Net position - ending $ 102,086,860 $ 4,730,166 $ 106,817,026


9


Balance Sheet - Governmental Funds Year Ended June 30,2015

Special Other Total General Revenue Construction Debt Service Governmental Governmental

Fund Fund Fund Fund Funds Funds

Assets Current:

Cash and cash equivalents $ 34,187,836 $ 885,254 $ 7,049,787 $ 18,591 $ 3,864,450 $ 46,005,918 Interiund receivable 1,213,431 10,316 1,223,747 Accounts receivable 3,156,920 913,905 90,585 4,161,410

'Total current $ 38,558,187 $ 1,799,159 $ 7,049,787 $ 18,591 $ 3,965,351 $ 51,391,075

Liabilities and Fund Balances

Liabilities Current:

Accounts payable $ 472,702 $ 166,374 $ $ 15,963 $ 13,761 $ 668,800 Unearned revenue 1,363,093 1,363,093 Interiund payable 10,316 10,316 Accrued payroll and related expenses 3,915,053 3,915,053

4,398,071 1,529,467 15,963 13,761 5,957,262

Noncurrent: Accrued sick leave 350,000 350,000

Total noncurrent 350,000 350,000

Total liabilities 4,748,071 1,529,467 15,963 13,761 6,307,262

Fund Balances Assigned:

Site based carryforward 743,331 743,331 Purchase obligations 3,562,223 84,418 3,646,641

Assigned - maintenance facility 2,784,367 2,784,367 New school openings 3,654,531 3,654,531 Future insurance claims 1,448,984 1,448,984

Restricted: Capital projects 7,049,787 3,018,974 10,068,761 Debt service 2,628 2,628 Grants 269,692 269,692

Unrestricted 20,438,372 848,198 21,286,570 Committed:

Other 1,178,308 1,178,308

Total fund balances 33,810,116 269,692 7,049,787 2,628 3,951,590 45,083,813

Total liabilities and fund balances $ 38,558,187 $ 1,799,159 $ 7,049,787 $ 18,591 $ 3,965,351 $ 51,391,075


10


Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Position

As of June 30, 2015

Total governmental fund balance

Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds.

Construction in process Cost of capital assets Accumulated depreciation

Deferred outflows for CERS contributions made after the measurement date Deferred outflows for bond refinancing

Long-term liabilities (including bonds payable) are not due and payable in the current period and therefore are not reported as liabilities in the funds.

Long-term liabilities at year end consist of: Bonds payable Accrued interest on bonds Capital leases Assessed KISBIT liability Net pension liability Accrued sick leave

Total net position - governmental

337,707 424,734,051

(150,622,289)

4,229,380 503,607


11

$ 45,083,813

274,449,469

4,732,987

(184,211,698) (2,050,560)

(239,872) (580,317)

(33,175,133) (1,921,829)

$ 102,086,860


Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended June 30,2015

Special Other Total General Revenue Construction Debt Service Governmental Governmental

Fund Fund Fund Fund Funds Funds

Revenues Taxes $ 80,116,638 $ $ $ $ 18,996,730 $ 99,113,368 Earnings on investments 60,441 372 40 560 61,413 State sources 84,015,894 3,571,635 905,383 2,956,729 91,449,641 Federal sources 933,565 6,383,015 567,225 7,883,805 Other sources 971,726 299,971 2,798,871 4,070,568

Total revenues 166,098,264 10,254,621 372 1,472,648 24,752,890 202,578,795

Expenditures Instructional 95,422,132 7,673,095 1,685,751 104,780,978 Student support services 9,861,185 244,265 7,195 10,112,645 Staff support services 5,648,474 627,587 85,403 6,361,464 District administration 6,912,164 17,543 6,929,707 School administration 10,933,671 57,765 10,991,436 Business support services 4,627,226 211,538 4,838,764 Plant operation and maintenance 15,244,616 53,041 30,701 15,328,358 Student transportation 13,159,659 1,261,226 14,420,885 Community service operations 321,885 621,214 943,099 Facility acquisition and construction 231,703 27,583 2,514,901 2,774,187 Other 24,848,199 24,848,199 Debt service:

Principal 12,664,523 12,664,523 Interest 6,861,141 6,861,141

Total expenditures 162,362,715 10,737,092 2,514,901 44,373,863 1,866,815 221,855,386

Excess (deficit) of revenues over expenditures 3,735,549 (482,471) (2,514,529) (42,901,215) 22,886,075 (19,276,591)

Other financing sources (uses) Loan and bond proceeds 24,851,114 24,851,114 Proceeds from sale of assets 5,684 5,684 Operating transfers in 422,240 437,705 1,665,425 18,052,729 20,578,099 Operating transfers out (437,705) (42,420) (19,675,734) (20,155,859)

Total other financing sources (uses) (9,781) 395,285 1,665,425 42,903,843 (19,675,734) 25,279,038

Net change in fund balance 3,725,768 (87,186) (849,104) 2,628 3,210,341 6,002,447

Fund balance, July 1, 2014 30,084,348 356,878 7,898,891 741,249 39,081,366

Fund balance, June 30, 2015 $ 33,810,116 $ 269,692 $ 7,049,787 $ 2,628 $ 3,951,590 $ 45,083,813


12


Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Year Ended June 30,2015

Amounts reported for go\€mmental acti'v1ties in the statement of net position are different because:

Net changes-go\€mmental funds

Go\€mmental funds report capital outlays as expenditures because they use current financial resources. Howe\€r in the statement of acti'v1ties the cost of those assets is allocated o\€r their estimated usefulli\€s and reported as depreciation expense. This is the amount by vvhich capital outlays exceed depreciation expense for the year.

Depreciation expense Capital outlays Retirement of capital assets

Bond and capital lease proceeds are reported as financing sources in go\€mmental funds and thus contribute to the change in fund balance. In the statement of net position howe\€r, issuing debt increases long-tenn liabilities and does not affect the statement ofacti'v1ties. Similarly, repayment of principal is an expenditure in the go\€rnmental funds but reduces the liability in the statement of net position.

Bond principal paid Bond proceeds Deferred outflow Tom bond refinancing Capital lease principal paid

Deferred outflow CERS contributions made after the measurement date

Generally, expenditures recognized in this fund financial statement are limited to only those that use current financial resources, but expenses are recognized in the statement of acti'v1ties when they are incurred.

Changes in net position of go\€rnmental acti'v1ties

(12,796,906) 6,364,239

(13,756)

$ 6,002,447

(6,446,423)

36,308,660 (24,280,000)

503,607 132,256

4,229,380

848,489

$ 17,298,416


13


Statement of Net Position - Proprietary Funds As of June 30, 2015

Food Daycare Maker Space Service Fund Fund Total

Assets Current

Cash and cash equivalents $ 6,007,276 $ 11,893 $ $ 6,019,169 Inventories for consumption 262,494 262,494

Total current 6,269,770 11,893 6,281,663

Noncurrent Buildings and Improvements 76,617 76,617 Furniture and Fixtures 4,599,350 4,599,350 Less: accumulated depreciation (4,069,043) (4,069,043)

Total noncurrent 606,924 606,924

Total assets 6,876,694 11,893 6,888,587

Deferred outflows 111,529 6,124 117,653

Liabilities and Net Position

Liabilities Current

Accounts payable 40,070 82 40,152 Interfund payable 1,213,431 1,213,431

Total current 1,253,501 82 1,253,583

Noncurrent CERS net pension liability 874,828 48,039 922,867 Accumulated sick leave 99,624 99,624

Total liabilities 2,227,953 48,121 2,276,074

Net Position

Invested in assets, net of debt 606,924 606,924 Assigned 720,333 30 720,363 Unrestricted 3,433,013 PO,134) 3,402,879

Total net position $ 4,760,270 $ (30,104) $ $ 4,730,166

The accornpanying notes are an integral part of these financial staternents.

14


Statement of Revenues, Expenses and Changes in Net Position -Proprietary Funds


Food Daycare Maker Space Service Fund Fund Total

Operating revenues Lunchroom sales $ 3,480,024 $ $ $ 3,480,024 Other operating revenues 25,791 239,133 264,924

Total operating revenues 3,505,815 239,133 3,744,948

Operating expenses Salaries and benefits 4,246,936 284,002 4,530,938 Contract services 247,373 247,373 Materials and supplies 3,643,756 40,097 3,683,853 Depreciation 71,481 71,481 Other operating expenses

Total operating expenses 8,209,546 284,002 40,097 8,533,645

Operating loss (4,703,731) (44,869) (40,097) (4,788,697)

Nonoperating revenues (expenses) Federal grants 4,137,298 4,137,298 State grants 952,663 76,503 1,029,166 Donated commodities and other donations 648,987 40,097 689,084 Transfers out (422,240) (422,240) Interest income 2,871 2,871

Total nonoperating revenues 5,319,579 76,503 40,097 5,436,179

Change in net position 615,848 31,634 647,482

Total net position, July 1,2014 5,019,250 (13,699) 5,005,551

Net position adjustment (874,828) (48,039) (922,867)

Total net position, June 30, 2015 $ 4,760,270 $ (30,104) $ $ 4,730,166


15


Statement of Cash Flows - Proprietary Funds Year Ended June 30,2015

Food Maker Service Daycare Space

Fund Fund Fund Total Cash flows from operating activities

Cash reeei""d from lunchroom sales $ 3,480,024 $ $ $ 3,480,024 Cash reeei""d from other aetil,ties 167,492 219,334 386,826 Cash payments to employees for se",ees (4,246,936) (284,002) (4,530,938) Cash payments to suppliers for goods and se",ees (3,863,267) 58 (40,097) (3,903,306) Cash transfers (422,240) (422,240)

Net cash used in operating aetilAties (4,884,927) (64,610) (40,097) (4,989,634)

Cash flows from capital financing activities Purchase of capital assets (293,342) (293,342)

Net cash used in eapitallnaneing aetilAties (293,342) (293,342)

Cash flows from noncapital financing activities Non-operating re\€nues recei\€d 5,738,948 76,503 40,097 5,855,548

Net cash prolAded by noneapitallnaneing aetilAties 5,738,948 76,503 40,097 5,855,548

Cash flows from investing activities Interest on in""stments 2,871 2,871

Net cash lows prolAded by in""sting aetilAties 2,871 2,871

Net increase (decrease) in cash and cash equi""lents 563,550 11,893 575,443

Cash (o""rdral) and cash equi""lents - beginning 5,443,726 5,443,726

Cash (o""rdral) and cash equi""lents - ending $ 6,007,276 $ 11,893 $ $ 6,019,169

Reconciliation of operating loss to net cash used in operating activities Operating loss $ (4,703,731) $ (44,869) $ (40,097) $(4,788,697)

Adjustments to reconcile operating lossto net cash used in operating activities Depreciation 71,481 71,481 Transfers (422,240) (422,240) Changes in assets and liabilities:

(Decrease) increase in accounts payable 8,456 58 8,514 (Decrease) increase in accumulated sick lea"" 12,045 12,045 (Decrease) increase in due to other funds 253,230 (13,675) 239,555 (Increase) decrease in deferred outlows (111,529) (6,124) (117,653) (Increase) decrease in in""ntories 7,361 7,361

Net cash used in operating aetilAties $ (4,884,927) $ (64,610) $ (40,097) $(4,989,634)

Schedule of non-<:ash transactions: Donated commodities reeei""d from federal go""mment $ 648,987 $ $ 40,097 $ 689,084


16


Statement of Net Position - Fiduciary Funds Year Ended June 30,2015

Assets Cash and cash equivalents

Total assets

Liabilities Due to student groups

Total liabilities

School Activity Funds

$ 1,778,208

1,778,208

1,778,208

$ 1,778,208

Total

$ 1,778,208

1,778,208

1,778,208

$ 1,778,208


17


Notes to the Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

The Boone County Board of Education (Board), a five member group, is the level of government which has oversight responsibilities over all activities related to public elementary and secondary school education within the jurisdiction of the Boone County School District (District). The District receives funding from local, state and federal government sources and must comply with the commitment requirements of these funding source entities. However, the District is not included in any other governmental "reporting entity" as defined in Section 2100, Codification of Governmental Accounting and Financial Reporting Standards. Board members are elected by the public and have decision making authority, the power to designate management, the responsibility to develop policies which may influence operations, and primary accountability for fiscal matters.

The District, for financial purposes, includes all of the funds and account groups relevant to the operation of the Boone County Board of Education. The financial statements presented herein do not include funds of groups and organizations, which although associated with the school system, have not originated within the Board itself such as Parent-Teacher Associations, etc.

The financial statements of the District include those of separately administered organizations that are controlled by or dependent on the Board. Control or dependence is determined on the basis of budget adoption, funding and appointment of the respective governing board.

Based on the foregoing criteria, the financial statements of the following organization are included in the accompanying financial statements:

Boone County School District Finance Corporation - The Board authorized the establishment of the Boone County School District Finance Corporation (a non-profit, non-stock, public and charitable corporation organized under the School Bond Act and KRS 273 and KRS 58.180) as an agency of the District for financing the costs of school building facilities. The Board Members of the Boone County Board of Education also comprise the Corporation's Board of Directors.

Basis of Presentation

District-wide Financial Statements - The statement of net position and the statement of activities display information about the District as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. The statements distinguish between those activities of the District that are governmental and those that are considered business-type activities.

The district-wide statements are prepared using the economic resources measurement focus. This is the same approach used in the preparation of the proprietary fund financial statements but differs from the manner in which governmental fund financial statements are prepared. Governmental fund financial statements therefore include reconciliation with brief explanations to better identify the relationship between the district-wide statements and the statements for governmental funds.

18


Notes to the Financial Statement (Continued)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation (Continued)

The district-wide statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the District and for each function or program of the District's governmental activities. Direct expenses are those that are specifically associated with a service, program or department and are therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues of the District, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each business segment or governmental function is self-financing or draws from the general revenues of the District

Fund Financial Statements - Fund financial statements report detailed information about the District The focus of governmental and enterprise fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type.

The accounting and reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using a flow of current financial resources measurement focus. The financial statements for governmental funds are a balance sheet, which generally includes only current assets and current liabilities, and a statement of revenues, expenditures and changes in fund balances, which reports on the changes in total net position. Proprietary funds and fiduciary funds are reported using the economic resources measurement focus.

The District has the following funds:

I. Governmental Fund Types

(A) The General Fund is the primary operating fund of the District It accounts for financial resources used for general types of operations. This is a budgeted fund and any unrestricted fund balances are considered as resources available for use. This is a major fund of the District

(8) The Special Revenue Fund accounts for proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to disbursements for specified purposes. It includes federal financial programs where unused balances are returned to the grantor at the close of specified project periods as well as the state grant programs. Project accounting is employed to maintain integrity for the various sources of funds. The separate projects of federally funded grant programs are identified in the schedule of expenditures of federal awards included in this report on page 63. This is a major fund of the District

19




Basis of Presentation (Continued)

I. Governmental Fund Types (co nt' d)

(C) Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities and equipment (other than those financed by Proprietary Funds).

1. The Support Education Excellence in Kentucky (SEEK) Capital Outlay Fund receives those funds designated by the state as Capital Outlay funds and is restricted for use in financing projects identified in the District's facility plan.

2. The Facility Support Program of Kentucky Fund (FSPK) accounts for funds generated by the building tax levy required to participate in the School Facilities Construction Commission's construction funding and state matching funds, where applicable. Funds may be used for projects identified in the District's facility plan.

3. The Construction Fund accounts for proceeds from sales of bonds and other revenues to be used for authorized construction. This is a major fund of the District.

II. Debt Service Fund

The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest and related cost; and, for the payment of interest on general obligation notes payable, as required by Kentucky Law.

III. Proprietarv Fund (Enterprise Fund)

The School Food Service Fund is used to account for school food service activities, including the National School Lunch Program, which is conducted in cooperation with the U.S. Department of Agriculture (USDA). The Food Service fund is a major fund of the District.

IV. Fiduciarv Fund Type (Agency and Trust Funds)

The Activity Funds account for activities of student groups and other types of activities requiring clearing accounts. These funds are accounted for in accordance with Uniform Program of Accounting for School Activity Funds.

The District applies all Governmental Accounting Standards Board (GASB) pronouncements to proprietary funds as well as the Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements.

20




Basis of Accounting

The basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. District-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary funds also use the accrual basis of accounting.

Revenues - Exchange and Non-exchange Transactions - Revenues resulting from exchange transactions, in which each party receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenues are recorded in the fiscal year in which the resources are measurable and available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, available means expected to be received within sixty days of the fiscal year end.

Nonexchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements, in which the District must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. On a modified accrual basis, revenues from nonexchange transactions must also be available before they can be recognized.

Unearned Revenue - Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied.

Grants and entitlements received before the eligibility requirements are met are recorded as unearned revenue.

Expenses/Expenditures - On the accrual basis of accounting, expenses are recognized at the time they are incurred.

The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation, are not recognized in governmental funds.

Taxes

Property Tax Revenues - Property taxes are levied each September on the assessed value listed as of the prior January 1, for all real and personal property in the county. The billings are considered due upon receipt by the taxpayer; however, the actual date is based on a period ending 30 days after the tax bill mailing. Property taxes collected are recorded as revenues in the fiscal year for which they were levied. All taxes collected are initially deposited into the General Fund and then transferred to the appropriate fund.

21




Budgetary Process

Budgetary Basis of Accounting: The District's budgetary process accounts for certain transactions on a basis other than Generally Accepted Accounting Principles (GAAP) of the United States of America. The major differences between the budgetary basis and the GAAP basis are:

Revenues are recorded when received in cash (budgetary) as opposed to when susceptible to accrual (GAAP).

Expenditures are recorded when paid in cash (budgetary) as opposed to when susceptible to accrual (GAAP).

Cash and Cash Equivalents

The District considers demand deposits, money market funds, and other investments with an original maturity of 90 days or less, to be cash equivalents.

Inventories

Supplies and materials are charged to expenditures when purchased, except for inventories in the Proprietary Fund, which are capitalized at the lower of cost or market.

Capital Assets

General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the district-wide statement of net assets but are not reported in the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the business-type activities column of the district-wide statement of net assets and in the respective funds.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated fixed assets are recorded at their fair market values as of the date received. The District maintains a capitalization threshold of one thousand dollars, with the exception of computers, digital cameras and real property, for which there is no threshold. The District does not possess any infrastructure. Improvements are capitalized; the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not.

22




Capital Assets (Continued)

All reported capital assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight-line method over the following useful lives for both general capital assets and proprietary fund assets:

Description

Buildings and improvements Land improvements Technology equipment Vehicles General equipment Food ser\ice equipment Furniture and fixtures Other

Accumulated Unpaid Sick Leave Benefits

Governmental Activities Estimated Lives

25-50 years 20 years 5 years

5-10 years 10 years

10-12 years 7 years

10 years

Upon retirement from the school system, an employee will receive from the District an amount equal to 30% of the value of accumulated sick leave. Sick leave benefits are accrued as a liability using the termination payment method. An accrual for earned sick leave is made to the extent that it is probable that the benefits will result in termination payments. The liability is based on the District's experience of making termination payments. The entire compensated absence liability is reported on the district-wide financial statements.

Interfund Balances

On fund financial statements, receivables and payables resulting from short-term interfund loans are classified as "interfund receivables/payables". These amounts are eliminated in the governmental and business-type activities columns of the statements of net assets, except for the net residual amounts due between governmental and business-type activities, which are presented as internal balances.

Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the district-wide financial statements, and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported on the proprietary fund financial statements.

In general, payables and accrued liabilities that will be paid from governmental funds are reported on the governmental fund financial statements regardless of whether they will be liquidated with current resources. However, claims and judgments, the noncurrent portion of capital leases, accumulated sick leave, contractually required pension contributions and special termination benefits that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they will be paid with current, expendable, available financial resources. In general, payments made within sixty days after year-end are considered to have been made with current available financial resources. Bonds and other long-term obligations that will be paid from governmental funds are not recognized as a liability in the fund financial statements until due.

23




Fund Balance Reserves

Beginning with fiscal year 2012 the District implemented GASB Statement 54, "Fund Balance Reporting and Governmental Fund Type Definitions." This Statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on the District's fund balance more transparent. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable fund balance - amounts that are not in a spendable form (such as inventory) or are required to be maintained intact;

Restricted fund balance - amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions, or by enabling legislation.

Committed fund balance - amounts constrained to specific purposes by the District itself, using its decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the District takes the action to remove or change the constraint.

Assigned fund balance - amounts the District intends to use for specific purpose (such as encumbrances); intent can be expressed by the District or by an official or body to which the District delegates the authority.

Unassigned fund balance - amounts that are available for purpose; positive amounts are reported only in the General fund.

It is the Board's practice to liquidate funds when conditions have been met releasing these funds from legal, contractual, Board or managerial obligations, using restricted funds first, followed by committed funds, assigned funds, then unassigned funds.

Encumbrances are not liabilities and are not recorded as expenditures until receipt of material or service. Encumbrances remaining open at the end of the fiscal year are automatically rebudgeted in the following fiscal year. Encumbrances are considered a managerial assignment of fund balance in the governmental funds balance sheet.

Net Position

Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

Operating Revenues and Expenses

Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the District, those revenues are primarily charges for meals provided by the various schools.

24




Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and as non-operating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements.

Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the County Employees Retirement System Non-Hazardous ("CERS") and Teachers Retirement System of the State of Kentucky ("KTRS") and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the pensions. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

NOTE 2 ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, designated fund balances, and disclosure of contingent assets and liabilities at the date of the general purpose financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 3 CASH AND CASH EQUIVALENTS

The District maintains its cash in bank deposit accounts which, at times, exceed federally insured limits. The amounts exceeding the federally insured limits are covered by a collateral agreement and the collateral is held by the pledging banks' trust departments in the District's name. The District has not experienced any losses in such accounts and the District believes it is not exposed to any significant credit risk on cash and cash equivalents.

25



NOTE 4 CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2015 was as follows: Balance Balance

Governmental Activities June 30, 2014 Additions Deductions June 30, 2015

Land $ 12,934,451 $ $ $ 12,934,451 Land improvements 10,102,627 237,096 10,339,723 Buildings and improvements 350,443,183 3,897,366 354,340,549 Technology equipment 17,777,986 752,439 129,302 18,401,123 Vehicles 21,525,339 2,110,826 41,824 23,594,341 General equipment 4,457,267 697,368 30,771 5,123,864 Construction work in progress 1,668,563 1,330,856 337,707

Totals at historical cost 418,909,416 7,695,095 1,532,753 425,071,758

Less: accumulated depreciation Land improvements 3,465,148 231,362 3,696,510 Buildings and improvements 104,784,499 9,385,997 114,170,496 Technology equipment 15,536,209 1,255,410 127,287 16,664,332 Vehicles 11,523,890 1,630,307 41,824 13,112,373 General equipment 2,703,778 293,830 19,030 2,978,578

Total accumulated depreciation 138,013,524 12,796,906 188,141 150,622,289

Governmental activities capital assets - net $ 280,895,892 $ (5,101,811) $ 1,344,612 $ 274,449,469

Business - TiRe Activities

General equipment $ 3,427,991 $ 251,442 $ 38,336 $ 3,641,097 Buildings and improvements 76,617 76,617 Vehicles 17,749 41,900 59,649 Technology equipment 898,604 898,604

Totals at historical cost 4,420,961 293,342 38,336 4,675,967

Less: accumulated depreciation General equipment 3,111,515 54,792 38,336 3,127,971 Buildings and improvements 28,648 5,277 33,925 Vehicles 17,749 1,898 19,647 Technology equipment 877,986 9,514 887,500

Total accumulated depreciation 4,035,898 71,481 38,336 4,069,043

Business - type activities capital assets - net $ 385,063 $ 221,861 $ $ 606,924

Depreciation expense by function for the fiscal year ended June 30, 2015 was as follows:

Governmental Business-Type

Instruction $ 4,683,295 $

Student support services 76,607

Staff support services 114,103

District administration 12,076

School administration 12,314

Business support services 347,090

Plant operation and maintenance 5,867,057

Food service 71,481

Student transportation 1,684,007

Community services 357

Total $ 12,796,906 $ 71,481

26



NOTE 5 ACCUMULATED UNPAID SICK LEAVE BENEFITS

Upon providing proof of qualification as an annuitant from the Kentucky Teacher's Retirement System, certified and classified employees will receive from the District an amount equal to 30% of the value of accumulated sick leave. At June 30, 2015 this amount totaled approximately $2,371,453 for those employees with twenty-seven or more years of experience.

NOTE 6 COMMITMENTS UNDER CAPITAL LEASES

The District is the lessee of buses under capital leases expiring between 2015 and 2019. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the lower of their related lease terms or their estimated productive lives. Depreciation of assets under capital leases is included in depreciation expense.

Future minimum lease payments under capital leases as of June 30, 2015, for each of the next five years and in the aggregate are as follows:

Year Ending June 30

2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

Total minimum payments

Less amount representing interest

Present value of net minimum lease payments

27

$110,126 75,374 40,513 23,340

249,353

9,481

$ 239,872



NOTE 7 LEASE OBLIGATIONS AND BONDED DEBT

The amount shown in the accompanying financial statements as lease obligations represents the District's future obligations to make lease payments relating to the bonds issued.

The original amount of each issue, the issue date, and interest rates are summarized below:

Issue Date Proceeds Rates

August 1, 2005 $ 15,695,000 3.750% - 4.250% July 1, 2006 17,065,000 4.200% - 4.500%

December 1, 2006 23,310,000 3.875% March 1, 2007 36,365,000 3.600% - 4.125%

May 1, 2008 5,600,000 2.300% - 3.300% February 1, 2009 14,270,000 2.000% - 4.875%

September 1, 2009 5,960,000 1.000% - 2.900% June 1, 2010 11,085,000 5.750% June 1, 2010 4,105,000 1.000% - 3.200%

September 1, 2010 23,810,000 1.500% - 2.500% April 1, 2011 16,590,000 2.000% - 5.000%

December 1, 2011 9,985,000 2.000% February 1, 2012 27,700,000 2.000% - 2.750%

September 1, 2012 12,170,000 2.000% - 2.625% March 1, 2013 5,975,000 2.000% - 3.250%

September 1, 2014 11,905,000 2.000% - 3.000% March 1, 2015 12,375,000 2.000% - 3.000%

The District, through the General Fund (including utility taxes and the Support Education Excellence in Kentucky (SEEK) Capital Outlay Fund) is obligated to make lease payments in amounts sufficient to satisfy debt service requirements on bonds issued by the Kenton County Fiscal Court and the Boone County School District Finance Corporation to construct school facilities.

The District entered into "participation agreements" with the School Facility Construction Commission (Commission). The Commission was created by the Kentucky General Assembly for the purpose of assisting local school districts in meeting school construction needs. Note 17 sets forth the amount to be paid by the District and the Commission for each year until maturity of all bond issues. The liability for the total bond amount remains with the District and, as such, the total principal has been recorded in the financial statements.

All issues may be called prior to maturity and redemption premiums are specified in each issue. Assuming no bonds are called prior to scheduled maturity, the minimum obligations of the District, including amounts to be paid by the Commission, at June 30, 2015 for debt service (principal and interest) are reported in Note 17.

NOTE 8 RETIREMENT PLANS

The District's employees are provided with two pension plans, based on each position's college degree requirement. The County Employees Retirement System covers employees whose position does not require a college degree or teaching certification. The Kentucky Teachers Retirement System covers positions requiring teaching certification or otherwise requiring a college degree.

28



NOTE 8 RETIREMENT PLANS (CONTINUED)

General information about the County Employees Retirement System Non-Hazardous

Plan description

Employees whose positions do not require a degree beyond a high school diploma are covered by the CERS, a cost-sharing multiple-employer defined benefit pension plan administered by the Kentucky Retirement System, an agency of the Commonwealth of Kentucky. Under the provisions of the Kentucky Revised Statute ("KRS") Section 61.645, the Board of Trustees of the Kentucky Retirement System administers CERS and has the authority to establish and amend benefit provisions. The Kentucky Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for CERS. That report may be obtained from http /jkyret.ky.govl.

Benefits provided

CERS provides retirement, health insurance, death and disability benefits to Plan employees and beneficiaries. Employees are vested in the plan after five years' service. For retirement purposes, employees are grouped into three tiers, based on hire date:

Tier 1 Participation date Before Septem ber 1, 2008

Unreduced retirement 27 years serv1ce or 65 years old

Reduced retirement At least 5 years serv1ce and 55 years old

At least 25 years serv1ce and any age

Tier 2 Participation date September 1, 2008 - December 31, 2013

Unreduced retirement At least 5 years serv1ce and 65 years old

Or age 57+ and sum of serv1ce years plus age equal 87

Reduced retirement At least 10 years serv1ce and 60 years old

Tier 3 Participation date After December 31, 2013

Unreduced retirement At least 5 years serv1ce and 65 years old

Or age 57+ and sum of serv1ce years plus age equal 87

Reduced retirement Not available

Cost of living adjustments are provided at the discretion of the General Assembly. Retirement is based on a factor of the number of years' service and hire date multiplied by the average of the highest five years' earnings. Reduced benefits are based on factors of both of these components. Participating employees become eligible to receive the health insurance benefit after at least 180 months of service. Death benefits are provided for both death after retirement and death prior to retirement. Death benefits after retirement are $5,000 in lump sum. Five years' service is required for death benefits prior to retirement and the employee must have suffered a duty-related death. The decedent's beneficiary will receive the higher of the normal death benefit and $10,000 plus 25% of the decedent's monthly final rate of pay and any dependent child will receive 10% of the decedent's monthly final rate of pay up to 40% for all dependent children. Five years' service is required for nonservice-related disability benefits.

29




Contributions

Required contributions by the employee are based on the following tier:

Required contribution

Tier 1 5%

Tier 2 5% + 1% for insurance

Tier 3 5% + 1% for insurance

The contribution requirement for CERS for the year ended June 30, 2015, was $5,657,175, which consisted of $4,347,033 from the District and $1,310,142 from the employees. Total contributions for the year ended June 30,2014 and 2013 were $5,822,522 and $6,009,138, respectively. The contributions have been contributed in full for fiscal years 2015, 2014 and 2013.

General information about the Teachers' Retirement System of the State of Kentucky

Plan description

Teaching certified employees of the District and other employees whose positions require at least a college degree are provided pensions through the Teachers' Retirement System of the State of Kentucky-a cost-sharing multiple-employer defined benefit pension plan with a special funding situation established to provide retirement annuity plan coverage for local school districts and other public educational agencies in the Commonwealth. KTRS was created by the 1938 General Assembly and is governed by Chapter 161 Section 220 through Chapter 161 Section 990 of the KRS. KTRS is a blended component unit of the Commonwealth of Kentucky and therefore is included in the Commonwealth's financial statements. KTRS issues a publicly available financial report that can be obtained at http://www.ktrs.ky.gov/05 publi cations/index. htrn

Benefits provided

For employees who have established an account in a retirement system administered by the Commonwealth prior to July 1, 2008, employees become vested when they complete five (5) years of credited service. To qualify for monthly retirement benefits, payable for life, employees must either:

1.) Attain age fifty-five (55) and complete five (5) years of Kentucky service, or 2.) Complete 27 years of Kentucky service.

Employees that retire before age 60 with less than 27 years of service receive reduced retirement benefits. Non-university employees with an account established prior to July 1, 2002 receive monthly payments equal to two (2) percent (service prior to July 1, 1983) and two and one-half (2.5) percent (service after July 1, 1983) of their final average salaries for each year of credited service. New employees (including second retirement accounts) after July 1, 2002 will receive monthly benefits equal to 2% of their final average salary for each year of service if, upon retirement, their total service less than ten years. New employees after July 1, 2002 who retire with ten or more years of total service will receive monthly benefits equal to 2.5% of their final average salary for each year of service, including the first ten years. In addition, employees who retire July 1, 2004 and later with more than 30 years of service will have their multiplier increased for all years over 30 from 2.5% to 3.0% to be used in their benefit calculation. Effective July 1, 2008, the System has been amended to change the benefit structure for employees hired on or after that date.

30




Final average salary is defined as the member's five (5) highest annual salaries for those with less than 27 years of service. Employees at least age 55 with 27 or more years of service may use their three (3) highest annual salaries to compute the final average salary. KTRS also provides disability benefits for vested employees at the rate of sixty (60) percent of the final average salary. A life insurance benefit, payable upon the death of a member, is $2,000 for active contributing employees and $5,000 for retired or disabled employees.

Cost of living increases are one and one-half (1.5) percent annually. Additional ad hoc increases and any other benefit amendments must be authorized by the General Assembly.

Contributions

Contribution rates are established by Kentucky Revised Statutes. Non-university employees are required to contribute 12.105% of their salaries to the System. University employees are required to contribute 9.895% of their salaries. KRS 161.580 allows each university to reduce the contribution of its employees by 2.215%; therefore, university employees contribute 7.68% of their salary to KTRS. The contribution requirement for KTRS for the year ended June 30, 2015, was $12,476,261, which consisted of $2,117,192 from the District and $10,359,069 from the employees. Total contributions for the year ended June 30, 2014 and 2013 were $11,091,824 and $10,231,894, respectively. The contributions have been contributed in full for fiscal years 2015, 2014 and 2013.

The Commonwealth of Kentucky, as a non-employer contributing entity, pays matching contributions at the rate of 13.105% of salaries for local school district and regional cooperative employees hired before July 1, 2008 and 14.105% for those hired after July 1, 2008. For local school district and regional cooperative employees whose salaries are federally funded, the employer contributes 15.355% of salaries. If an employee leaves covered employment before accumulating five (5) years of credited service, accumulated employee pension contributions plus interest are refunded to the employee upon the member's request.

Medical Insurance Plan

Plan description

In addition to the pension benefits described above, KRS 161.675 requires KTRS to provide postemployment healthcare benefits to eligible employees and dependents. The KTRS Medical Insurance Fund is a cost-sharing multiple employer defined benefit plan. Changes made to the medical plan may be made by the KTRS Board of Trustees, the Kentucky Department of Employee Insurance and the General Assembly.

To be eligible for medical benefits, the member must have retired either for service or disability. The KTRS Medical Insurance Fund offers coverage to employees under the age of 65 through the Kentucky Employees Health Plan administered by the Kentucky Department of Employee Insurance. Once retired employees and eligible spouses attain age 65 and are Medicare eligible, coverage is obtained through the KTRS Medicare Eligible Health Plan.

31




Funding policy

In order to fund the post-retirement healthcare benefit, six percent (6%) of the gross annual payroll of employees before July 1, 2008 is contributed. Three percent (3%) is paid by member contributions and three quarters percent (.75%) from Commonwealth appropriation and two and one quarter percent (2.25%) from the employer. Also, the premiums collected from retirees as described in the plan description and investment interest help meet the medical expenses of the plan.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2015, the District reported a liability for its proportionate share of the net pension liability for CERS. The District did not report a liability for the District's proportionate share of the net pension liability for KTRS because the Commonwealth of Kentucky provides the pension support directly to KTRS on behalf of the District. The amount recognized by the District as its proportionate share of the net pension liability, the related Commonwealth support, and the total portion of the net pension liability that was associated with the District were as follows:

District's proportionate share of the CERS net pension liability

Commonwealth's proportionate share of the KTRS net pension

liability associated vvith the District

$ 34,098,000

554,477,174

$ 588,575,174

The net pension liability for each plan was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

The District's proportion of the net pension liability for CERS was based on the actual liability of the employees and former employees relative to the total liability of the System as determined by the actuary. At June 30, 2014, the District's proportion was 1.050980% percent.

For the year ended June 30, 2015, the District recognized pension expense of $4,551,883 related to CERS and $27,170,510 related to KTRS. The District also recognized revenue of $27,170,510 for KTRS support provided by the Commonwealth. At June 30, 2014, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Net difference between projected and actual earnings on pension plan investments

District contributions subsequent to the measurement date

Total

32

Deferred Outflows of Resources

$

4,347,033

$ 4,347,033

Deferred Inflows of Resources

$ 3,806,000

$ 3,806,000




$4,347,033 reported as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. other amounts reported as deferred outflows of resources and deferred inflows related to pensions will be recognized in pension expense as follows:

Actuarial assumptions

Year ended June 30:

2016 $761,200

2017 761,200

2018 761,200

2019 761,200

2020 761,200

The total pension liability in the June 30, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

CERS KTRS

Inftation 3.50% 3.50%

Projected salary increases 4.50% 4.0-8.2%

Investment rate of return, net of

investment expense and inflation 7.75% 7.50%

For CERS, Mortality rates for the period after service retirement are according to the 1983 Group Annuity Mortality Table for all retired employees and beneficiaries as of June 30, 2006 and the 1994 Group Annuity Mortality Table for all other employees. The Group Annuity Mortality Table set forward five years is used for the period after disability retirement.

For KTRS, Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on a projection of Scale AA to 2020 with a setback of 1 year for females. The last experience study was performed in 2011 and the next experience study is scheduled to be conducted in 2016.

For CERS, the long-term expected return on plan assets is reviewed as part of the regular experience studies prepared every five years. The most recent analysis, performed for the period covering fiscal years 2005 through 2008, is outlined in a report dated August 25, 2009. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed by the investment consultant for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The capital market assumptions developed by the investment consultant are intended for use over a 10-year horizon and may not be useful in setting the longterm rate of return for funding pension plans which covers a longer timeframe. The assumption is intended to be a long-term assumption and is not expected to change absent a significant change in the asset allocation, a change in the inflation assumption, or a fundamental change in the market that alters expected returns in future years.

33




Actuarial assumptions (Continued)

For KTRS, the long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class, as provided by KTRS's and CERS's investment consultant, are summarized in the following table:

KTRS Target KTRS Long-Term Expected CERS Target CERS Long-Term Expected

Asset Class Allocation Real Rate of Return Allocation Real Rate of Return

US equity 45% 6.40% 30% 8.45% Non-US equity 17% 6.50% 22% 8.85%

Emerging market equity 5% 10.50% Private equity 7% 1.25% Core US fixed income 10% 5.25%

High yield US fixed income 5% 7.25% Non-US fixed incomes 5% 5.50%

Com m odities 5% 7.75% TIPS 5% 5.00%

Fixed income 24% 1.60%

High yield bonds 4% 3.10%

Real estate 4% 5.80% 5% 7.00%

Alternatives 4% 6.80%

Cash 2% 1.50% 1% 3.25% Total 100% 100%

Discount rate

For CERS, the discount rate used to measure the total pension liability was 7.75%. The projection of cash flows used to determine the discount rate assumed that contributions from plan employees and employers will be made at statutory contribution rates. Projected inflows from investment earnings were calculated using the long-term assumed investment return of 7.75%. The long-term investment rate of return was applied to all periods of projected benefit payments to determine the total pension liability.

For KTRS, the discount rate used to measure the total pension liability was 5.23%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rates and the employer contributions will be made at statutorily required rates. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan employees until the 2036 plan year. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments through 2035 and a municipal bond index rate of 4.35% was applied to all periods of projected benefit payments after 2035. The Single Equivalent Interest Rate (SEIR) that discounts the entire projected benefit stream to the same amount as the sum of the present values of the two separate benefit payments streams was used to determine the total pension liability.

34




Sensitivity of CERS and KTRS proportionate share of net pension liability to changes in the discount rate

The following table presents the net pension liability of the District, calculated using the discount rates selected by each pension system, as well as what the District's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentagepoint higher than the current rate:

CERS District's proportionate share of net

pension liability

KTRS District's proportionate share of net

pension liability

Pension plan fiduciary net position

1% Decrease

6.75%

$ 44,870,686

4.23%

Current Discount Rate 1% Increase

7.75% 8.75%

$ 34,098,000 $ 24,580,078

5.23% 6.23%

Detailed information about the pension plan's fiduciary net position is available in the separately issued financial reports of both CERS and KTRS.

NOTE 9 CONTINGENCIES

Grant Fund Approval The District receives funding from federal, state, and local government agencies and private contributions. These funds are to be used for designated purposes only. For government agency grants, if the grantor's review indicates that the funds have not been used for the intended purpose, the grantors may request a refund of monies advanced or refuse to reimburse the District for its disbursements. The amount of such future refunds and unreimbursed disbursements, if any, is not expected to be significant. Continuation of the District's grant programs is predicated upon the grantors' satisfaction that the funds provided are being spent as intended and the grantors' intent to continue the programs.

NOTE 10 INSURANCE AND RELATED ACTIVITIES

The District is exposed to various forms of loss of assets associated with the risks of fire, personal liability, theft, vehicular accidents, errors and omissions, fiduciary responsibility, etc. Each of these risk areas are covered through the purchase of commercial insurance. The District has purchased certain policies which are retrospectively rated, which includes workers' compensation insurance.

35

NOTE 11 RISK MANAGEMENT



The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. To obtain insurance for errors and omissions, and general liability coverage, the District participates in the Kentucky School Boards Insurance Trust Liability Insurance Fund. These public entity risk pools operate as common risk management and insurance programs for all school districts and other tax supported educational agencies of Kentucky who are members of the Kentucky School Boards Association. The District pays an annual premium to each fund for coverage. The Liability Insurance fund pays insurance premiums of the participating members established by the insurance carrier. The Trust can terminate coverage if it is unable to obtain acceptable excess general liability coverage and for any reason by giving ninety (90) days' notice. In the event the Trust terminated coverage, any amount remaining in the Fund (after payment of operational and administrative costs and claims for which coverage was provided) would be returned to the member on a pro rata basis.

The District is self-insured for unemployment insurance benefits. The District reimburses the state for any claims paid. The District purchases workers' compensation insurance through the Kentucky School Boards Insurance Trust. In addition, the District continues to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 12 - DEFICIT OPERATING/FUND BALANCES

The District currently has no funds with a deficit fund balance. However, the following funds have operations that resulted in a current year deficit of revenues over expenditures, resulting in a corresponding reduction of fund balance:

Construction Fund Special Revenue Fund Conner High School Conner Middle School Gray Middle School Goodridge Elementary Florence Elementary Ockerman Middle School North Points Elementary A. M. Yea ley Elementary Boone High School New Haven Elementary Longbranch Elementary R.A. Jones Middle School Camp Ernst Middle School Ockerman Elementary Erpenbeck Elementary Thornwilde Elementary Collins Elementary Stephens Elementary Shirley Mann Elementary Burlington Elementary Kelly Elementary

36

$ 849,104 87,186 71,293 59,902 56,399 46,017 41,623 37,593 34,337 30,220 28,405 26,299 24,408 23,780 23,169 22,942 18,526 13,552 11,500 9,945 8,362 5,980

220

NOTE 13-COBRA



Under COBRA, employers are mandated to notify terminated employees of available continuing insurance coverage. Failure to comply with this requirement may put the District at risk for a substantial loss (contingency).

NOTE 14 - CONTINGENT LIABILITY

The District is a participant in the Kentucky School Board Insurance Trust in which the District purchases general liability and workers' compensation insurance. As of June 30, 2015, the District has been notified of a deficit in the trust and has been given a preliminary assessment of its portion of the deficit of $1,278,746. The District paid $698,429 of the assessment in 2015. This contingent liability has been recorded in the District Wide Financial Statements but not included in the Governmental Financial Statements.

NOTE 15 - TRANSFER OF FUNDS

The following transfers were made during the year.

From Fund

Food Ser\1ce Fund

General Fund

Special Revenue Fund

Capital Outlay Fund

Building Fund

Building Fund

NOTE 16 - ON-BEHALF PAYMENTS

To Fund

General Fund

Special Revenue Fund

Construction Fund

Construction Fund

Construction Fund

Debt Ser\1ce Fund

Purpose

Indirect Cost

Operating

Operating

Construction

Construction

Debt Ser\1ce

Amount

$ 422,240

$ 437,705

$ 42,420

$ 861,746

$ 761,259

$ 18,052,729

For the year ended June 30, 2015 total payments of $31,824,972 were made for life insurance, health insurance, KTRS matching and administrative fees by the Commonwealth of Kentucky on behalf of the District. These payments were recognized as on-behalf payments and recorded in the appropriate revenue and expense accounts on the statement of activities.

General Fund Debt Ser\1ce Day Care Food Ser\1ce

Total On-Behalf

37

$ 29,985,922 905,383 76,503

857,164

$ 31,824,972



NOTE 17 - SCHEDULE OF LONG-TERM OBLIGATIONS

FISCAL BOONE COUNTY KY SCHOOL FACILITIES YEAR SCHOOL DISTRICT CONSTRUCTION COMMISSION

PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL

2015-2016 $ 12,532,645 $ 5,385,205 $ 17,917,850 $ 671,015 $ 234,367 $ 905,382 2016-2017 12,813,950 5,093,401 17,907,351 689,710 215,676 905,386 2017-2018 13,152,526 4,741,650 17,894,176 591,134 193,992 785,126 2018-2019 13,584,504 4,372,293 17,956,797 609,156 175,968 785,124 2019-2020 13,960,562 3,989,697 17,950,259 573,098 157,794 730,892 2020-2021 14,337,335 3,600,738 17,938,073 411,325 143,086 554,411 2021-2022 14,709,834 3,219,579 17,929,413 423,826 130,586 554,412 2022-2023 15,071,237 2,853,846 17,925,083 437,423 116,988 554,411 2023-2024 15,536,682 2,379,294 17,915,976 451,978 102,434 554,412 2024-2025 12,611,967 1,880,521 14,492,488 311,693 87,016 398,709 2025-2026 13,079,789 1,413,654 14,493,443 323,871 74,841 398,712 2026-2027 11,625,868 956,922 12,582,790 312,792 62,354 375,146 2027-2028 3,132,231 503,859 3,636,090 272,769 50,109 322,878 2028-2029 3,280,239 360,913 3,641,152 284,761 38,120 322,881 2029-2030 1,927,892 211,076 2,138,968 232,108 25,587 257,695 2030-2031 2,017,548 123,820 2,141,368 242,452 15,244 257,696 2031-2032 493,008 31,849 524,857 66,992 4,339 71,331 2032-2033 505,914 16,442 522,356 69,086 2,245 71,331 Various* 2,862,778 2,862,778

$ 177,236,509 $ 41,134,759 $ 218,371,268 $ 6,975,189 $ 1,830,746 $ 8,805,935

*Expected interest income to be earned on qualified school construction bond escrow account

TOTAL REQUIREMENTS

$ 18,823,232 18,812,737 18,679,302 18,741,921 18,681,151 18,492,484 18,483,825 18,479,494 18,470,388 14,891,197 14,892,155 12,957,936 3,958,968 3,964,033 2,396,663 2,399,064

596,188 593,687

2,862,778

$ 227,177,203

A summary of the changes in the principal of the outstanding bond obligations and the capital leases for the District during the year ended June 30, 2015 is as follows:

Balance Balance Governrnental Activities Jull1,2014 Additions Palrnents June 30, 2015

Bond Obligations $ 196,240,358 $ 24,280,000 $ 36,308,660 $ 184,211,698

Capital Leases $ 372,128 $ $ 132,256 $ 239,872

38



NOTE 18 - CHANGE IN ACCOUNTING PRINCIPLE

Effective July 1, 2014, the District was required to adopt Governmental Accounting Standards Board (GAS B) Statement no. 68, "Accounting and Financial Reporting for Pensions" (GASB 68). GASB 68 replaced the requirements of GASB 27, "Accounting for Pensions by State and Local Governmental Employers" and GASB 50, "Pension Disclosures", as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. GASB 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability to more comprehensively and comparably measure the annual costs of pension benefits. Cost-sharing governmental employers, such as the District, are required to report a net pension liability, pension expense and pension-related assets and liabilities based on their proportionate share of the collective amounts for all governments in the plan.

GASB 68 required retrospective application. Since the District only presents one year of financial information, the beginning net pension was adjusted to reflect the retrospective application. The adjustment resulted in a $33,175,133 reduction in beginning net position on the Statement of Activities and an increase of $4,347,033 of deferred outflows of resources - District contributions subsequent to the measurement date. As a result of GASB 68, the Day Care Fund has a negative net position of $30,104 as of June 30, 2015.

NOTE 19 - SUBSEQUENT EVENTS

Subsequent events were considered through November 13, 2015, which represents the release date of our report

39

SUPPLEMENTARY INFORMATION


Combining Balance Sheet - Nonmajor Governmental Funds As of June 30, 2015

Total District Non-major

Capital Outlay Building Activity Government Fund Fund Fund Funds

Assets Current:

Cash and cash equivalents $ 1,096,170 $ 1,922,804 $ 845,476 $ 3,864,450 Interfund receivable 10,316 10,316 Accounts receivable 90,585 90,585

Total current $ 1,096,170 $ 1,922,804 $ 946,377 $ 3,965,351

Liabilities and Fund Balances

Liabilities: Accounts payable $ $ $ 13,761 $ 13,761

Total liabilities 13,761 13,761

Fund Balances: Assigned 84,418 84,418 Restricted:

Capital projects fund 1,096,170 1,922,804 3,018,974 Unrestricted 848,198 848,198

Total fund balances 1,096,170 1,922,804 932,616 3,951,590

Total liabilities and fund balances $ 1,096,170 $ 1,922,804 $ 946,377 $ 3,965,351

40


Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds

As of June 30, 2015

Total District Nonmajor

Capital Outlay Building Activity Government Fund Fund Fund Funds

Revenues: Taxes $ $ 18,996,730 $ $ 18,996,730 Earnings on investments 560 560 State sources 1,839,955 1,116,774 2,956,729 Other sources 2,798,871 2,798,871

Total revenues 1,839,955 20,113,504 2,799,431 24,752,890

Expenditures: Instructional 1,685,751 1,685,751 Student support services 7,195 7,195 Staff support services 85,403 85,403 School adm inistration 57,765 57,765 Plant operation and maintenance 30,701 30,701

Total expenditures 1,866,815 1,866,815

Excess (deficit) of revenues over expenditures 1,839,955 20,113,504 932,616 22,886,075

Other Financing Sources (Uses) Operating transfers out (861,746) (18,813,988) (19,675,734)

Total other financing sources(uses) (861,746) (18,813,988) (19,675,734)

Net change in fund balance 978,209 1,299,516 932,616 3,210,341

Fund balance, July 1,2014 117,961 623,288 741,249

Fund balance, June 30,2015 $ 1,096,170 $ 1,922,804 $ 932,616 $ 3,951,590

41


Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual - General Fund


Variance with Final Budget

Original Final Favorable Budget Budget Actual (Unfavorable)

Revenues Taxes $ 76,850,000 $ 77,050,000 $ 80,116,638 $ 3,066,638 Earnings on investments 60,000 60,000 60,441 441 State sources 80,096,135 80,983,765 84,015,894 3,032,129 Federal sources 125,000 850,000 933,565 83,565 Other sources 2,291,000 1,914,000 1,399,650 (514,350)

Total revenues 159,422,135 160,857,765 166,526,188 5,668,423

Expenditures Instructional 106,790,877 107,343,701 95,422,132 11,921,569 Student support services 8,128,124 8,584,983 9,861,185 (1,276,202) Staff support services 4,676,383 4,768,263 5,648,474 (880,211 ) District administration 5,921,138 5,778,439 6,912,164 (1,133,725) School administration 9,242,425 9,107,737 10,933,671 (1,825,934) Business support services 5,395,404 5,446,812 4,627,226 819,586 Plant operation and maintenance 14,958,700 15,586,839 15,244,616 342,223 Student transportation 12,578,334 12,271,651 13,159,659 (888,008) Community service operations 146,720 149,610 321,885 (172,275) Facility acquisition and construction 231,703 (231,703) Other 9,137,029 9,372,729 437,705 8,935,024

Total expenditures 176,975,134 178,410,764 162,800,420 15,610,344

Net change in fund balance (17,552,999) (17,552,999) 3,725,768 21,278,767

Fund balance, July 1, 2014 17,552,999 17,552,999 30,084,348 12,531,349

Fund balance, June 30, 2015 $ $ $ 33,810,116 $ 33,810,116

42


Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual - Special Revenue Fund




Revenues State sources $ 5,885,839 $ 6,218,660 $ 3,571,635 $ (2,647,025) Federal sources 5,657,548 5,394,302 6,383,015 988,713 Other sources 1,077,917 1,046,129 737,676 (308,453)

Total revenues 12,621,304 12,659,091 10,692,326 (1,966,765)

Expenditures Instructional 8,235,823 8,235,823 7,673,095 562,728 Student support services 270,273 270,273 244,265 26,008 Staff support services 683,117 633,117 627,587 5,530 District administration 17,543 (17,543) Business support services 211,538 (211,538) Plant operation and maintenance 15,000 53,041 (53,041 ) Student transportation 1,243,181 1,243,181 1,261,226 (18,045) Community service operations 616,547 616,547 621,214 (4,667) Facility acquisition and construction 27,583 (27,583) Other 57,358 57,358 42,420 14,938

Total expenditures 11,121,299 11,056,299 10,779,512 276,787

Net change in fund balance 1,500,005 1,602,792 (87,186) (1,689,978)

Fund balance, July 1, 2014 356,878 356,878

Fund balance, June 30, 2015 $ 1,500,005 $ 1,602,792 $ 269,692 $ (1,333,100)

43


Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual - Construction Fund


Original Final Budget Budget Actual

Revenues Earnings on investments $ 681,348 $ 2,711,674 $ 372 other sources 20,635,143 14,605,846 1,665,425

Total revenues 21,316,491 17,317,520 1,665,797

Expenditures Facility acquisition and construction 15,671,051 13,694,457 2,514,901

Total expenditures 15,671,051 13,694,457 2,514,901

Net change in fund balance 5,645,440 3,623,063 (849,104)

Fund balance, July 1, 2014 48,408,853 153,136,570 7,898,891

Fund balance, June 30, 2015 $ 54,054,293 $ 156,759,633 $ 7,049,787

44


Favorable (Unfavorable)

$ (2,711,302) (12,940,421 )

(15,651,723)

(11,179,556)

(11,179,556)

(4,472,167)

(145,237,679)

$ (149,709,846)


Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual- Debt Service Fund




Revenues Taxes $ $ $ $ Earnings on investments 40 40 State sources 905,383 905,383 Federal sources 567,225 567,225 Other sources 18,000,000 18,000,000 42,903,843 24,903,843

Total revenues 18,000,000 18,000,000 44,376,491 26,376,491

Expenditures Other 18,000,000 18,000,000 44,373,863 (26,373,863)

Total expenditures 18,000,000 18,000,000 44,373,863 (26,373,863)

Net change in fund balance 2,628 2,628

Fund balance, July 1, 2014

Fund balance, June 30, 2015 $ $ $ 2,628 $ 2,628

45


Statement of Receipts, Disbursements and Fund Balances Bond and Interest Redemption Funds

For the Year Ended June 30,2015

Issue of Issue of Issue of Issue of Issue of Issue of Issue of Issue of Issue of 2005 2006 2006 - Ref 2007 2008 - Ref 2009 2009 - Ref 2010 - QCSB 2010 - Ref

Cash at July 1,2014 $ $ $ $ $ $ $ $ $

Receipts: Transfers and miscellaneous deposits 736,422 1,162,788 3,218,753 1,881,319 726,155 1,004,069 723,920 637,388 452,495

Disbursements: Bonds paid 465,000 575,000 2,495,000 515,000 660,000 485,000 660,000 360,000 Interest coupons 271,422 587,788 723,753 1,366,319 66,155 519,069 63,920 637,388 92,495

Total disbursements 736,422 1,162,788 3,218,753 1,881,319 726,155 1,004,069 723,920 637,388 452,495

Excess of receipts over disbursements

Cash at June 30, 2015

Fund Balance at June 30,2015 $ $ $ $ $ $ $ $ $

Issue of Issue of Issue of Issue of Issue of Issue of Issue of Issue of 2010B - Ref 2011 2011 - Ref 2012 2012B-Ref 2013 2014 2015 - Ref Total

Cash at July 1,2014 $ $ $ $ $ $ $ $ $

Receipts: Transfers and miscellaneous deposits 1,682,319 1,160,906 1,639,300 2,522,556 1,045,225 296,213 166,313 19,056,141

Disbursements: Bonds paid 1,210,000 495,000 1,505,000 1,850,000 775,000 120,000 25,000 12,195,000 Interest coupons 472,319 665,906 134,300 672,556 270,225 176,213 141,313 6,861,141

Total disbursements 1,682,319 1,160,906 1,639,300 2,522,556 1,045,225 296,213 166,313 19,056,141

Excess of receipts over disbursements

Cash at June 30, 2015

Fund Balance at June 30,2015 $ $ $ $ $ $ $ $ $

46


Statement of Receipts, Disbursements and Fund Balance Boone County High School Activity Fund


Fund Fund Balance Balance

July 1,2014 Receipts Disbursements June 30, 2015

Academic team $ 423 $ 443 $ 824 $ 42 Administrator 4,440 8,255 7,278 5,417 Advanced Placement 2,765 19,417 19,230 2,952 Agendas 3,100 3,100 Art Club 1,353 966 386 Art Department 50 4,355 4,405 Athletic Concessions 2,905 15,459 15,287 3,077 Athletic Fees 3,627 7,950 10,305 1,272 Athletics 41,545 88,330 95,799 34,077 Background check 560 560 Backpack Food Program 68 622 373 317 Band 3,350 39,943 35,174 8,120 Band 2012-2013 400 400 Baseball 6,737 24,284 19,441 11,579 Basketball- Boys 41,777 16,814 14,888 43,703 Basketball- Girls 14,920 25,270 23,748 16,442 BCHSKYA 290 177 114 Bowling Team 7,908 16,234 10,094 14,049 Business Ed Department 1,333 2,200 3,533 Cheerleaders - JV & Varsity 8,149 45,323 50,022 3,450 Choral Music 245 11,141 8,908 2,478 Citigroup Scholarship 600 600 Class of 1955 scholarship 79 921 1,000 Class of 1956 scholarship 25 25 Class of current 2,459 23,603 23,544 2,518 CopierfTechnology 4,954 9,240 14,194 Cross Country - Boys 1,071 2,006 1,145 1,931 Cross Country - Girls 264 2,509 1,935 837 Dance Team 418 418 Dr Edward P & Mary 13,562 14,483 10,297 17,748 Drink Machine 119 204 134 189 English department 468 6,431 6,899 Family and Consumer Science 219 3,369 3,568 20 FASFF 2,086 996 1,091 FBLA 791 6,103 6,236 657 FCA 119 372 415 76 FCC LA 170 631 406 395 Fine Arts Department 4 1,500 1,504 Football 7,911 47,549 36,154 19,306 Forensic Nationals 140 70 210 Forensic Team 1,739 21,599 22,333 1,005 French Club 138 403 488 53

47


Statement of Receipts, Disbursements and Fund Balance Boone County High School Activity Fund (Continued)



July 1, 2014 Receipts Di sbu rse me nts June 30, 2015

Freshman Account $ 7,460 $ 9,675 $ 11,342 $ 5,793 General 7,442 6,979 9,288 5,133 General Fees 5,510 112,632 117,453 690 German Club 144 90 93 141 German National Honor 22 22 Gall - Boys 3,025 712 1,050 2,687 Gall - Girls 1,566 904 913 1,556 Grace Kelly Girls Club 128 103 25 Guidance Department 761 607 495 873 Health grant 2,246 2,425 2,749 1,922 Jamie Jetter Art 750 200 950 Laura Chaney 487 1,163 1,500 150 Library 478 3,425 3,903 Literacy initiative 4 4 Lockers 3,714 3,714 Math Department 295 3,097 3,392 Men of Boone 8 62 55 14 Meritor Scholarship 390 10 400 Music Honor Society 212 850 647 416 Nancy Lambers Bresser 800 500 1,000 300 National Art Honor 18 18 National French Honor 18 18 National Honor Society 314 1,109 546 876 Newspaper 255 392 439 209 Parking 7,269 7,269 Pep Club 71 55 16 Photography 3,885 3,885 Physical Education Department 937 1,500 2,437 Robotics Team 133 1,145 1,277 Science Club 288 101 186 Science Department 5,955 16,918 22,873 Soccer - Boys 5,417 5,345 8,023 2,740 Soccer - Girls 4,517 19,410 21,351 2,575 Social Studies Department 10,551 8,588 19,050 89 Softball 2,845 6,826 6,206 3,466 Spanish Club 30 30 Special Ed Class Stol 6,312 5,453 858 Special Ed Department 1,921 1,930 3,851

48


Statement of Receipts, Disbursements and Fund Balance Boone County High School Activity Fund (Continued)



July 1, 2014 Receipts Disbursements June 30, 2015

Spiri-Demic Store $ 2,440 $ 4,266 $ 4,393 $ 2,313 Spotlighters 15,589 18,363 28,888 5,064 Spring Musical 1 3,485 2,972 514 Square 0 Student Council 103 1,540 1,292 350 Student Enrichment 150 2,324 266 2,208 Summer enrichment 1,650 3,005 4,130 525 Swimming 245 7,786 6,031 2,000 Tennis - Boys 263 500 332 431 Tennis - Girls 636 1,200 352 1,485 Testing Committee 1,801 1,836 2,008 1,629 Textbook rental 33,170 33,170 Track - Boys 5,089 8,640 10,892 2,837 Track - Girls 4,344 8,700 10,962 2,082 Volleyball 6,373 5,539 8,553 3,359 Women of Boone 335 308 432 211 World Language 2,000 2,000 4,000 Wrestling 2,131 4,632 5,422 1,341 Yearbook 13,436 14,101 16,048 11,488 Youth Service Center 1,180 863 1,040 1,003

Total $ 297,643 $ 825,369 $ 853,774 $ 269,238

49


Statement of Receipts, Disbursements and Fund Balance Conner High School Activity Fund For the Year Ended June 30,2015


Julli 1, 2014 Recei~ts Disbursements June 30, 2015

A+ Certification $ 48 $ $ $ 48 Academic Team 373 2,206 1,821 757 Agenda Book 1,383 4,622 5,990 15 American Sign Language 104 104 AP US History 2 624 624 2 Archery Club 6,936 5,355 1,580 Art 840 8,138 8,559 419 Art Club 10 1,000 304 706 Arts & Humanities 24 24 Athletic 13,760 40,179 52,922 1,017 Athletic Director 1,000 534 1,534 Athletic Fees 13,315 10,902 14,247 9,970 Background Check 580 570 10 Band 2,115 89,486 89,632 1,969 Baseball 3,599 26,749 22,402 7,945 Basketball/Boys 19,025 21,708 26,417 14,315 Basketball/Girls 21,136 28,884 33,898 16,122 BET A Science Club 81 15 96 Career Choices 18 18 CD Interest 3,664 504 4,168 Character Counts 1,135 6,398 6,334 1,199 Cheerleaders 9,877 33,131 36,778 6,230 Choirs 6,812 75,226 81,567 471 CHS Scholarship 45 964 1,000 9 Citi Foundation 2013-14 1,783 1,783 Citi Foundation 2014-15 8,684 8,148 536 Citi Reserve Account 3,060 1,783 900 3,944 Clearing 28,800 28,800 Cougarettes 826 300 438 688 Cougars for a Cause 254 98 353 Credit Recovery Program 300 2,860 1,940 1,220 Cross Country 2,410 2,355 2,602 2,163 CTE 1,381 13,136 13,900 617 District Volleyball 2,599 1,892 707 Drama 1,294 808 886 1,216 Drinks/Snack - Student Account 435 5,844 2,967 3,312 Earth Club 1,174 1,174 English 547 842 1,389 F.B.L.A 202 202 378 26 F.C.C.LA 177 177 F.FA 1,225 10,476 11,092 609 Faculty 12 44 16 40 Fees 17,277 105,056 122,334 Fellowship of Christian Athletes 9 9 Field Trips 2,122 1,967 155 Football 16,834 55,265 59,084 13,015 Freshman Honor Team 8 8

50


Statement of Receipts, Disbursements and Fund Balance Conner High School Activity Fund (Continued)



July 1, 2014 Receipts Disbursements June 30, 2015

Freshman Integrity Team $ 34 $ $ 34 $ Freshman Pride Team 108 108 Future Educators of America 465 738 680 522 General 4,456 51,978 51,367 5,068 German Club 190 190 Golf/Boys 728 1,165 952 941 Golf/Girls 866 400 531 734 Greg Miller Athletic Scholarship 1,000 1,000 Guidance 10,491 36,528 38,824 8,196 Hispanic Honor Society 320 1,894 2,012 203 History Club I nvisible Children Fund 385 385 Jazz Band 50 345 366 29 John Hoffman Scholarship 4,245 500 3,745 Junior Class 11,268 19,745 21,728 9,285 Larosa's Holiday To 500 500 Latin Club 74 10,673 10,681 66 Leadership League 36 47 83 Library 286 620 906 Marching Band 4,968 21,568 21,729 4,806 Math 939 939 MenNVoman of Conner 4 241 230 16 Model United Nations 45 45 National Honor Society 202 4,317 4,031 488 Parking 4,373 4,475 8,848 Pathway to Fin Success 602 602 Physical Education 69 857 926 Postage 403 124 71 455 Reg Football Playo Regional Wrestling 272 272 Scholarships 8,336 4,550 4,500 8,386 Science 2,163 23,316 25,463 15 Senior Class 2,597 18,049 19,181 1,465 Skills USA 234 1,286 1,520 Soccer District Soccer/Boys 4,380 14,833 11,004 8,210 Soccer/Girls 16,016 4,615 9,706 10,924 Social Studies 1,707 2,731 4,438 Soft Drinks - Faculty Account 436 979 1,398 17 Softball 5,170 6,157 7,304 4,023 Special Education 485 485 Speech & Forensics 82 82 Stock Purchase 12 22 34 Student Government 1,823 190 1,633 Summer School 5,477 1,890 6,917 450 Swimming 631 1,725 1,396 960 Technology Fee 2,959 13,439 16,353 45

51


Statement of Receipts, Disbursements and Fund Balance Conner High School Activity Fund (Continued)




Technology Student Association $ 1,286 $ $ 1,286 $ Ten n is/Boys 316 300 592 24 Tennis/Girls 513 300 123 691 Textbooks 222 43,342 43,248 316 The Cougar Crew 1,672 4,415 4,728 1,358 Track 5,995 21,108 16,887 10,216 Tri-M 483 315 453 345 Video Production 1,168 1,443 1,901 710 Volleyball 1,168 3,471 3,104 1,535 Warfield Scholarship 186 814 1,000 Winter Guard 65 65 World Language 172 2,242 2,414 Wrestling 10,081 8,066 10,421 7,727 Yearbook 218 3,024 1,632 1,610

Total $ 267,445 $ 941,766 $ 1,013,059 $ 196,152

52


Statement of Receipts, Disbursements and Fund Balance Cooper High School Activity Fund For the Year Ended June 30,2015


Jull! 1,2014 Recei~ts Disbursements June 30, 2015

Office $ 497 $ 2,606 $ 2,803 $ 300 Parking Passes 5,655 5,640 15 Vending 7,049 2,861 3,792 6,118 Vending Faculty 463 220 243 Vending Students 2,796 1,035 1,761 Interest NSF Checks 50 100 137 13 Faculty Scholarship 100 500 600 Livers Govvdy Memorial 500 500 Hospitality Fund 18 740 758 RCHS Character Scholarship 1,000 1,000 Service Learning 419 81 500 Room 150 250 165 85 English Department 1,612 1,612 World Language 1,462 1,462 Technology 12,250 12,250 Speech & Drama 800 800 CTE Club 580 580 FACS 4 6,595 6,599 French 314 1,421 1,412 323 Art 752 712 40 Drama 6,998 10,679 12,668 5,010 AG/Floral 1,135 200 1,335 FFA 1,077 19,531 20,138 471 FCCLA 3,891 3,609 282 German Club 242 4,750 4,992 FBLA 845 2,471 1,778 1,538 Academic Team 640 640 National Honor Society 925 2,244 2,267 902 STLP Club 480 812 1,150 142 Science Honor Society 1,518 264 800 981 Spanish Honor Society 734 1,574 1,402 906 Ambassadors 35 35 Senior Board 450 139 311 Student Council 5,073 25,103 22,383 7,793 FMP 225 889 1,114 Junior Class 101 46 55 PEP Club 166 1,116 1,281 1 Anime Club 3 3 National Ary Honor Society 18 383 401 Spanish Club 149 46 103 Odyssey of the mind 210 210 Class of 2016 332 937 1,269 Class of 2015 1,226 12,567 13,793 Class of 2017 103 103 Class of 2018 95 95

53


Statement of Receipts, Disbursements and Fund Balance Cooper High School Activity Fund (Continued)




Journalism $ $ 2,300 $ 2,300 $ Interalliance 1,288 1,276 12 Student Fees 8,714 121,107 129,783 38 Textbook 31,420 31,420 Credit Recovery 8,864 4,410 9,339 3,935 Act Prep Class 523 523 Summer eTA 2,409 2,409 PE Summer School 3,891 150 4,041 Agenda 40 4,265 4,305 Cheerleading competition 3,058 99,075 100,085 2,048 Cheerleading 4,629 31,979 27,318 9,289 Football 20,789 55,944 52,075 24,658 Basketball Boys 5,260 12,994 12,903 5,352 Bas ketba II Girls 4,076 22,300 12,083 14,293 Cross Country Boys 1,455 5,822 6,784 493 Cross Country Girls 4 4,658 3,946 716 Wrestling 2,271 5,341 4,908 2,704 Soccer Boys 1,384 4,017 4,211 1,191 Soccer Girls 3,093 440 1,306 2,227 Volleyball 1,749 5,967 5,328 2,388 Golf Boys 207 251 199 259 Golf Girls 131 30 101 Swimming 2,601 3,381 2,179 3,802 Baseball 5,029 7,040 5,064 7,005 Softball 1,713 1,713 Track Girls 290 7,045 6,892 443 Track Boys 1,026 1,433 1,596 863 Tennis Girls 123 344 117 351 Tennis Boys 103 445 424 124 Dance Team 334 3,887 4,221 Archery club 95 95 Bowling Team 7,736 6,067 6,186 7,617 Athletic Administration 27 103,578 98,209 5,396 Athletic Fees 181 19,032 15,200 4,013 Turf Account 1,000 1,000 CCHS Sports Medicine 5,403 5,403 St. Elizabeth Healthcare 13,606 13,606 Volleyball- districts 409 10,120 9,417 1,111 Band 935 14,446 12,947 2,434 Chorus 1,123 17,652 16,725 2,050 Yearbook 5,453 9,728 11,526 3,654 Guidance 4,542 64,480 61,267 7,755 Media Center 2,602 2,080 4,677 5 FFA Greenhouse 662 662 Calculus club 114 1,273 1,358 30 Energy Team 354 354 CBI 30 30 Jag Graphics 40 388 296 132 Cooper Store 2,674 17,339 16,825 3,188 Vocabulary books 1,155 1,155 KY background checks 30 570 580 20 Make a difference 18 133 150 1 Biology club 81 81 Autism Fundraiser 602 602 Art Field Trip 420 400 20 Cooper Strong 26,978 7,884 19,094 Graduation DVD 1,260 1,260

Total $ 143,660 $ 883,489 $ 851,283 $ 175,866

54


Statement of Receipts, Disbursements and Fund Balance Larry A. Ryle High School Activity Fund


Fund Balance

,Jul:t: 1,2014 Recei~ts Disbursements

Athletic Administration $ 9,582 $ 24,157 $ 21,371 Baseball 9,318 39,085 38,825 District Baseball 2,071 2,071 Boys Basketball 7,286 53,292 41,085 G iris Basketball 11,087 17,322 17,895 Athletic Gate Clearing 3,988 91,141 95,128 Athletic Concession 5,435 537 4,120 Cross Country 17,880 12,597 16,401 Athletic Fees 895 23,005 23,900 Football 528 53,043 50,641 Football Playoffs 65 65 Girls Golf 1,781 2,856 2,897 Boys Golf 9,993 11,990 8,160 Boys Soccer 11,220 25,158 23,447 Regional Boys Soccer Regional Girls Soccer 4,265 4,265 G iris Soccer 7,541 17,213 14,365 Regional softball 4,667 4,667 Softball 199 5,806 3,376 District Softball 1,181 1,181 Stadium Project 10,667 30,520 Boys Tennis 2,359 4,263 4,370 Girls Tennis 2,857 1,966 2,410 Track 1,504 22,954 19,250 Regional Volleyball 7,158 7,158 Volleyball 8,680 41,330 40,295 Swim & Dive Team 12,728 11,497 Wrestling 4,886 24,050 21,961 Academic Team 656 689 760 ACT Prep Program 1,526 1,526 Agenda 6,487 6,927 13,414 Archery 1,294 12,345 10,260 Art club 331 1,840 1,810 Art Department 61 2,966 3,027 Art Student Fees 1,534 1,526 Art Honor Society 27 24 51 Music Band 855 2,773 3,627 Business Department 3,844 3,844 Cheerleading 255 38,298 37,339 Choral Music 624 10,711 9,619 Class of 2015 6,797 26,167 32,964 Class 2016 42,148 26,683 Computer Fund 25,169 16,130 33,156 Copier Account 17,651 17,651 Drama 7,655 13,776 14,479 Drama Grant Account 688 Dance Team 6,462 20,868 15,390 Credit Recovery 7,072 6,972 English Department 1,516 2,299 3,815 English Honor Society 1,059 2,087 2,245 Enviro School Resource 354 354 F.B.L.A 1,283 40,550 36,495 Fellowship of Christian Athletes 35 35 General Student Fees 140 53,169 53,309 FFA 1,284 9,618 8,771 FCCLA 16 11,286 10,024 FCS 173 15,730 12,843 FCS Student Fees 4,160 4,160 FCS Catering 4,349 3,828 FCS Raider Threads 1,483 1,385 Foreign Language 170 426 596 Forensics/Speech & Debate 2,408 13,452 14,199

55

Fund Balance

..June 30, 2015

$ 12,368 9,578

19,493 10,514

1,852 14,075

2,929

1,740 13,823 12,931

10,389

2,629

41,187 2,252 2,414 5,208

9,715 1,231 6,976

584

3,379 361

8

1,214 1,716

15,465 8,143

6,952 688

11,940 100

901

5,338

2,131 1,278 3,060

521 98

1,661


Statement of Receipts, Disbursements and Fund Balance Larry A. Ryle High School Activity Fund (Continued)


Fund Fund

Balance Balance July 1, 2014 Receipts Disbursements June 30, 2015

French Club $ 76 $ $ 76 $ French Honor Society 286 650 654 282 Future Educators 210 210 General 25,613 6,816 15,241 17,188 Gennan Club 48 950 875 123 Gennan Honor Society 42 270 153 159 Guidance Department 6,561 80,953 79,314 8,200 Homecoming Dance 500 18,490 18,990 Janitorial Supply 11,449 100 11,549 Journali sm CI ub 17 17 Library 4,441 2,295 6,736 Lost Book Fund 20,491 1,407 6,486 15,412 MH Room 936 742 194 Math Honor Society 2,497 839 502 2,834 Math Department 2,423 2,734 5,157 Marching Band 10,034 78,762 47,743 41,054 Men and Women of Ryle 126 126 Meritor Scholarship 2,000 2,000 MOS 16,605 4,649 6,458 14,796 National Honor Society 7,712 4,975 6,276 6,411 Oeial Smith Award 9,774 9,774 Odyssey of the Mind 13 5,940 5,953 Office Supply 2,300 539 2,810 29 Parking Fees 6,840 6,840 peGS Donation 4,047 4,047 Pep Club 214 214 Physical Education 1,980 1,980 Cam pus Store 1,410 25,601 23,778 3,232 Robotic Club 23 23 Ryle Tails Club 304 300 4 Science Department 2,275 21,655 23,930 Science Student Fees 19,243 19,243 Science Honor Society 266 188 240 213 Ski Club 171 171 Social Studies 341 1,060 1,401 Glob. Issues Student Fees 1,095 1,095 Spanish Club 20 20 Spanish Honor Society 232 1,186 1,221 197 Exceptional Students 1,754 1,283 3,037 Student Scholarships 4,386 4,250 4,000 4,636 Student Vending 2,183 7,822 6,701 3,303 Student Ambassador Org. 20 20 Student Council 1,110 6,145 5,982 1,273 Summer School 11,186 8,845 20,031 Teacher Vending 1,811 1,470 341 Technology Student Fees 156 7,250 7,406 Technology Oub 70 70 Teens Helping Kids Club 211 211 Tente 28 28 Textbook Rental 64,131 64,131 Vocational Agriculture 3,778 5,790 3,513 6,055 Vo-Ag Student fees 947 947 Yearbook 15,675 24,025 32,137 7,563 Bank of KY - other 715 715

Total $ 390,805 $ 1,319,237 $ 1,313,859 $ 396,183

56


Statement of Receipts, Disbursements and Fund Balance School Activity Funds


Conner Gray Ockennan R,A, Jones Camp Ernst Middle Middle Middle Middle Middle School School School School School

Fund balances at July I, 2014 $ 164,301 $ 137,814 $ 94,958 $ 43,196 $ 90,381

Add: receipts 448,264 395,018 204,023 77,841 309,383

Less: disbursements (508,166) (451,41!J (241,616) (101,621) (332,552)

Fund balance at June 30,2015 $ 104,399 $ 81,415 $ 57,365 $ 19,416 $ 67,212

A,M, Yealey Burlington Collins Longbranch North Points

Elementary Elementary Elementary Elementary Elementary


Add: receipts 110,154 126,971 65,158 201,420 103,665

Less: disbursements (140,374) (132,951) (76,658) (225,828) (138,002)


Goodridge Kelly New Haven Ockennan stephens Elementary Elementary Elementary Elementary Elementary


Add: receipts 125,196 36,525 158,030 107,448 96,288

Less: disbursements (171,213) (36,745) (184,329) (130,390) (106,233)


Shirley Erpenbeck Florence Mann Thornwilde Elementary Elementary Elementary Elementary Total

Fund balances at July I, 2014 $ 59,479 $ 57,207 $ 28,783 $ 35,797 $ 1,235,543

Add: receipts 156,780 47,451 210,978 83,500 3,064,093

Less: disbursements (175,306) (89,074) (219,340) (97,052) (3,558,867)


57


Schedule of the District's Proportionate Share of the Net Pension Liability - KTRS

District's proportion of the

net pension liability

District's proportionate share of

the net pension liability

State's proportionate share of the

net pension liability

associated with the District

Total

District's covered-employee payroll

District's proportionate share of the net

pension liability as a percentage

of its covered-employee payroll

Plan fiduciary net position as a percentage

of the total pension liability

2014

0%

$

554,477,174

$ 554,477,174

$ 84,319,614

0%

45.59%

Last 10 Fiscal Years*

2013 2012 2011 2010 2009 2008 2007 2006

* The amounts presented for each fiscal year were determined as of June 30. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

Changes of benefit terms: None

2005

Changes of assumption: In the 2011 valuation and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2011. In the 2011 valuation, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In the 2011 valuation, the Board adopted an interest smoothing methodology to calculate liabilities for purposes of determining the actuarially determined contributions.

58

Contractually required contribution

Contributions in relation to the

contractually required contribution

Contribution deficiency


Contributions as a percentage of of covered-employee payroll


Schedule of District Contributions - KTRS


2015 2014 2013 2012 2011

$ 2,117,192 $ 1,517,334 $1,144,998 $ 959,487

(2,117,192) (1,517,334) (1,144,998) (959,487)

$ $ $ .;$,=====

$ 85,576,799 $ 84,319,614

2.47% 1.80%

2010 2009 2008 2007 2006


59


Schedule of the District's Proportionate Share of the Net Pension Liability - CERS

District's proportion of net pension liability

District's proportionate share of

the net pension liability

Total net pension liability


District's proportionate share of the net

pension liability as a percentage

of its covered-employee payroll

Plan fiduciary net position as a percentage

of the total pension liability

2014

1.050980%

$ 34,098,000

$ 3,244,377,000

$ 24,096,211

141.51%

66.80%


2013 2012 2011 2010 2009 2008 2007 2006 2005


Changes of benefit terms: The following changes were made by the Kentucky Legislature and reflected in the valuation performed as of June 30 listed below:

2009: A new benefit tire for members who first participate on or after September 1, 2008 was introduced which included the following changes:

1. Tired structure for benefit accrual rates

2. New retirement eligibility requirements

3. Different rules for the computation of final average compensation

2014: As cash balance plan was introduced for member whose participation date is on or after January 1, 2014.

Changes of assumption: The following changes were made by the Kentucky Legislature and reflected in the valuation performed as of June 30 listed below:

2006: The assumptions were updated as the result of an experience study for the five year period ending June 30, 2005.

2007: Amortization bases have been combined and will be amortized over a single 30 year closed period beginning June 30, 2007.

2009: The assumptions were updated as the result of an experience study for the three year period ending June 30, 2008.

2013: The amortization period of the unfunded accrued liability was reset to a closed 30 years period.

60

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency


Contributions as a percentage of of covered-employee payroll


Schedule of District Contributions - CERS


2015 2014 2013 2012 2011

$ 4,347,033 $ 4,551,883 $ 4,747,527 $ 3,860,040

(4,347,033) (4,551,883) (4,747,527) (3,860,040)

$ $ $ .,;$;....==

$ 24,601,259 $ 24,096,211

17.67% 18.89%

2010 2009 2008 2007 2006


61


Schedule of Expenditures of Federal Awards For the Year Ended June 30,2015

Federal Grantor/Pass-Through Grantorl Program or Cluster Title

U.S. Department of Education Passed through Kentucky Department of Education Special Education Cluster

Special Education_Grants to States

Special Education_Grants to States Special Education_Grants to States

Special Education_Preschool Grants Special Education_Preschool Grants

Special Education_Preschool Grants Total Special Education Cluster

Title I Grants to Local Educational Agencies

Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies

Total CFDA#84.010

Career and technical Education -Basic Grants to States Career and technical Education -Basic Grants to States

Career and technical Education -Basic Grants to States Total CFDA#84.048

Fund for the Improvement of Education

English Language Acquisition State Grants

English Language Acquisition State Grants English Language Acquisition State Grants

Total CFDA#84.365

Title II Improving Teacher Quality State Grants Title II Improving Teacher Quality State Grants

Total CFDA#84.367

Race to the Top

Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers

Total CFDA#84.287C

Total U.S. Department of Education

u.s. Department of Agriculture

Child Nutrition Cluster Passed through Kentucky Department of Education

National School Lunch Program National School Lunch Program

School Breakfast Program School Breakfast Program Summer Food Service Program for Children

Summer Food Service Program for Children

Passed through Kentucky Department of Agriculture National School Lunch Program - Food Donation

Total Child Nutrition Cluster

Total U.S. Department of Agriculture

Total Expenditures of Federal Awards

62

Federal

CFDA Number

84.027 84.027 84.027 84.173 84.173 84.173

84.010A

84.010A 84.010A

84.048 84.048

84.048

84.215E

84.365

84.365 84.365

84.367 84.367

84.413

84.287C 84.287C

10.555 10.555

10.553 10.553 10.559

10.559

10.555

Agreement Number

381000213 381000214 381000215 380000213 380000214 380000215

310000213 310000214

310000215

371000213

371000214 371000215

S215E120422-13

330000213 330000214

330000215

323000214 323000215

396000211

340000212 340000213

775000215

775000214 776000515

776000514 769002414

774002314

059-0203

Federal

Expenditures for FYE

June 30, 2015

$ 739,378 977,095

1,365,446 11,159

9,625 93,227

3,195,930

79,743

424,784 1,779,007

2,283,534

856 21,713

129,979 152,549

180,426

33,729

26,979 127,162

187,870

87,614 237,665

325,279

3,913

41,770 20,000

61,770

6,391,271

2,727,215 707,443

535,343 135,509

2,964

28,824

648,987

4,786,285

4,786,285

$ 11,177,556


Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30,2015

NOTE 1 - BASIS OF PRESENTATION

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Boone County School District under programs of the federal government for the year ended June 30, 2015, and is reported on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of Boone County School District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.

NOTE 2 - FOOD DISTRIBUTION

Nonmonetary assistance is reported in the schedule at the fair value of the commodities disbursed. For the year ended June 30, 2015, the District reported food commodities expended in the amount of $648,987.

63


INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Members of the Board of Education Boone County School District Florence, Kentucky

We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Boone County School District, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise Boone County School District's basic financial statements, and have issued our report thereon dated November 13, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Boone County School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Boone County School District's internal control. Accordingly, we do not express an opinion on the effectiveness of Boone County School District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Boone County School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted other matters that we reported to management of the District in a separate letter dated November 13, 2015.

OHIO OFFICE: 150 East Fourth Street I Cincinnati. OH 45202 I Phone: (513) 241-8313 I Fax: (513) 241-8303

KENTUCKY OFFICE 2617 Legends Way I Crestview Hills. KY 41017 I Phone (859) 344-6400 I Fax (859) 578-7522


BARNES DENNIG

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

(Continued)

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Crestview Hills, Kentucky November 13, 2015


INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133

Members of the Board of Education Boone County School District Florence, Kentucky

Report on Compliance for Each Major Federal Program We have audited Boone County School District's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Boone County School District's major federal programs for the year ended June 30, 2015. Boone County School District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of Boone County School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Boone County School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Boone County School District's compliance.

Opinion on Each Major Federal Program

In our opinion, Boone County School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015.

Report on Internal Control Over Compliance

Management of Boone County School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Boone County School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Boone County School District's internal control over compliance.

OHIO OFFICE: 150 East Fourth Street I Cincinnati. OH 45202 I Phone: (513) 241-8313 I Fax: (513) 241-8303 KENTUCKY OFFICE 2617 Legends Way I Crestview Hills. KY 41017 I Phone (859) 344-6400 I Fax (859) 578-7522


BARNES DENNIG

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133

(Continued)

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

Crestview Hills, Kentucky November 13, 2015


Schedule of Findings and Questioned Costs Year Ended June 30,2015

SECTION I -SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Unmodified

Internal control over financial reporting: • Material weakness(es) identified? ___ Yes

• Significant deficiency(ies) identified that are not considered to be material weaknesses? ___ Yes

Noncompliance material to financial statements noted?

Federal Awards Internal control over major programs: • Material weakness(es) identified?

• Significant deficiency(ies) identified that are not considered to be

Yes ---

Yes ---

material weaknesses? ___ Yes

Type of auditor's report issued on compliance for major programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance with Section 51 O(a) of Circular A-133?

Identification of major programs

--- Yes

CFDA No. Name of Federal Program or Cluster

84.027/84.173 Special Education (IDEA) Cluster

x

x

x

x

x

x

Dollar threshold used to distinguish between Type A and Type B programs: $300,000

Auditee qualified as low-risk auditee? X Yes -'-'----

SECTION II - FINANCIAL STATEMENT FINDINGS

No matters are reportable

SECTION 111- FEDERAL AWARD FINDINGS AND QUESTIONED COST


68

No

None noted

No

No

None noted

No

No

Reference Number



Schedule of Findings and Questioned Costs Year Ended June 30,2015

Summary of Findings

69

Status


Management Letter Comments Year Ended June 30,2015

In planning and performing our audit of the financial statements of Boone County School District for the year ended June 30, 2015, we considered the District's internal control structure to determine our auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide assurance on the internal control structure.

This letter summarizes our comments and suggestions regarding those matters. A separate report dated November 13, 2015 contains our report on significant deficiencies and material weaknesses in the District's internal control structure. This letter does not affect our report dated November 13, 2015, on the financial statements of the Boone County School District.

CURRENT YEAR RECOMMENDATIONS CENTRAL OFFICE


ACTIVITY FUNDS

Boone County High School


Conner High School


Cooper High School


Larry A. Ryle High School

2015-01: Monthly financial statements not prepared and reviewed timely

Criteria - Per best practices recommended by the Kentucky Department of Education, schools should have a process in place to prepare and review the monthly financial reports each month.

Condition - During the testing of the Activity Funds, it was noted that several of the monthly reports were prepared at the same time.

Effect - Proper documentation of the monthly financial process was not followed.

Cause - Internal controls were not properly followed as designed by the District.

Recommendation - We recommend that the financial secretary prepare and submit the monthly financial reports to the principal for review each month. Further, we recommend the district finance officer to work with the financial secretary to ensure the monthly reports are being prepared timely.

Board Response - The finance officer has provided additional training to the proper employees to strengthen the controls over preparation and review the monthly financials reports each month in a timely manner.

70



CURRENT YEAR RECOMMENDATIONS (Continued)

Boone County Adult High School


Camp Ernst Middle School


Conner Middle School


Gray Middle School


Ockerman Middle School


R.A. Jones Middle School


Burlington Elementary




Collins Elementary


Erpenbeck Elementary


Florence Elementary


Goodridge Elementary


71




Charles H. Kelly Elementary

2015-02: Monthly financial statements not prepared and reviewed timely

Criteria - Per best practices recommended by the Kentucky Department of Education, schools should have a process in place to prepare and review the monthly financial reports each month.

Condition - During the testing of the Activity Funds, it was noted that several of the monthly reports were prepared at the same time.

Effect - Proper documentation of the monthly financial process was not followed.


Recommendation - We recommend that the financial secretary prepare and submit the monthly financial reports to the principal for review each month. Further, we recommend the district finance officer to work with the financial secretary to ensure the monthly reports are being prepared timely.

Board Response - The finance officer has provided additional training to the proper employees to strengthen the controls over preparation and review the monthly financials reports each month in a timely manner.

Longbranch Elementary


Shirley Mann Elementary


New Haven Elementary


North Pointe Elementary


Ockerman Elementary


72




Stephens Elementary

2015-03: Invoices are not being marked paid

Criteria - Per best practices recommended by the Kentucky Department of Education, invoices should be marked paid upon payment.

Condition - During the testing of the Activity Funds, it was noted that several of the paid invoices were not marked as such.

Effect - Proper documentation of the payment process was not followed.


Recommendation - We recommend that all invoices are marked paid upon payment.

Board Response - The school will develop a proper procedure to follow in order to insure invoices are marked paid or defaced in a proper manner.

Thornwilde Elementary


Yealey Elementary


FOOD SERVICE DEPARTMENT

2015-04: Food Service financial oversight

Criteria - Federal guidelines regarding cash management of Food Service operations suggest a balance of three to four months of operating expense is adequate.

Condition -During out testing of the Food Service, it was noted that the cash balance exceeded three to four months of operating expenses.

Effect - Food service may see a reduction in the per meal federal funding reimbursement rate.

Cause - Cash accumulation over a number of operating cycles and the delay of implementing the plan to upgrade Food Service equipment throughout the District.

Recommendation - We recommend the District aggressively pursue their implantation plan of equipment upgrades throughout the District.

Board Response - The District has been in process of developing a plan of upgrade to equipment and line operation of the cafeterias. Also staffing levels are being reviewed to insure maximum efficiency in servicing the students. The effects of implementation will be seen in future periods.

73



STATUS OF PRIOR YEAR RECOMMENDATIONS

CENTRAL OFFICE

Statement of prior year deficiency: Lack of physical copy of teacher's certificate

Current year follow-up: There were no such instances noted in the current year.

ACTIVITY FUNDS

Boone County High School


Conner High School


Cooper High School


Larry A. Ryle High School

Statement of prior year deficiency: Monthly financial statements not prepared and reviewed timely

Current year follow-up: See finding 2015-01 above.

Statement of prior year deficiency: Standard invoices were not signed by recipient


Statement of prior year deficiency: Monies on hand were not deposited on a timely basis


Boone County Adult High School


Camp Ernst Middle School


Conner Middle School


Gray Middle School



74



STATUS OF PRIOR YEAR RECOMMENDATIONS (Continued)



R.A. Jones Middle School


Burlington Elementary


Collins Elementary



Statement of prior year deficiency: Late payments and penalties paid


Erpenbeck Elementarv


Florence Elementary


Goodridge Elementary


Charles H. Kelly Elementary


Longbranch Elementary


Shirley Mann Elementary


New Haven Elementary


North Pointe Elementary


75



STATUS OF PRIOR YEAR RECOMMENDATIONS (Continued)

Ockerman Elementary


Stephens Elementary


Thornwilde Elementary


Yealey Elementary


FOOD SERVICE DEPARTMENT

Statement of prior year deficiency: Food Service financial oversight

Current year follow-up: See finding 2015-05 above.

76

APPENDIX C


Series 2016

Continuing Disclosure Agreement

(C-1)

FORM OF CONTINUING DISCLOSURE AGREEMENT

________________________________________________________________________

Relating to:

$12,775,000

BOONE COUNTY SCHOOL DISTRICT FINANCE CORPORATION

SCHOOL BUILDING REFUNDING REVENUE BONDS, SERIES 2016B

________________________________________________________________________

Dated as of: December 1, 2016

(C-2)

THIS CONTINUING DISCLOSURE UNDERTAKING AGREEMENT (this "Agreement") is made andentered into as of the 1st day of December, 2016, among Ross, Sinclaire & Associates, LLC, as disclosure agent(the "Disclosure Agent"), the Board of Education of the Boone County School District (the "Board") and BooneCounty School District Finance Corporation (the "Issuer").

RECITALS

WHEREAS, the Issuer has issued or will issue its School Building Refunding Revenue Bonds, Series 2016in the original aggregate principal amount of $12,775,000 (the "Bonds") pursuant to the provisions of Sections162.120 through 162.300 and 162.385 of the Kentucky Revised Statutes ("KRS") and the Bond Resolution adoptedOctober 10, 2016 (the "Bond Resolution") by the Issuer for the purpose of refunding in advance of maturity allor a portion of the outstanding Boone County School District Finance Corporation School Building RevenueBonds, Series 2006, the proceeds of which were used to finance a portion of costs related to the acquisition,construction and equipping of school facilities (collectively, the "Project"); and

WHEREAS, the Bonds have been offered and sold pursuant to a final Official Statement, dated November 17,2016 (the "Final Official Statement") and _____________________ (the "Original Purchaser") has agreed topurchase the Bonds based on its competitive bid pursuant to the terms of the Bond Resolution; and

WHEREAS, the Board is an "obligated person" as defined by the Securities and Exchange Commission Rule15c2-12, as amended from time to time (the "Rule") and subject to the provisions of the Rule; and

WHEREAS, the Disclosure Agent, the Board and the Issuer wish to provide for the disclosure of certaininformation concerning the Bonds and other matters on an on-going basis as set forth herein for the benefit of theBondholders, as hereinafter defined, in accordance with the provisions of the Rule;

NOW, THEREFORE, in consideration of the mutual promises and agreements made herein and in the BondResolution and the resolution of the Board adopted on October 10 2016, the receipt and sufficiency of whichconsideration is hereby mutually acknowledged, the parties hereto agree as follows:

SECTION 1. Definitions; Scope of this Agreement.

(A) All terms capitalized but not otherwise defined herein shall have the meanings assigned to those termsin the Rule. The following capitalized terms shall have the following meanings:

"Annual Financial Information" shall mean the annual financial information contemplated by the Rule,including (i) the annual audited financial statements prepared by the Board for each twelve month period endingJune 30, which shall include a balance sheet, a statement of revenue and expenditure and a statement of changesin fund balances, and (ii) an update to the of the financial information and operating data contained in the FinalOfficial Statement under the headings "BOND DEBT SERVICE," "DISTRICT STUDENT POPULATION,""LOCAL SUPPORT," and "SEEK ALLOTMENT". All such Annual Financial Information shall be prepared usinggenerally accepted accounting principles and generally accepted auditing standards or in accordance with theappropriate sections of KRS or Kentucky Administrative Regulations; provided, however, that the Board maychange the accounting principles used for preparation of such financial information so long as the Board includesas information provided to the public, a statement in narrative form to the effect that different accounting principlesare being used, stating the reason for such change and how to compare the financial information provided by thediffering financial accounting principles.

"Beneficial Owner" shall mean any person who or which has the power, directly or indirectly, to vote orconsent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds throughnominees, depositories or other intermediaries).

"Bondholders" shall mean any holder of the Bonds and any Beneficial Owner thereof.

"EMMA" shall mean the Electronic Municipal Market Access System established by the MSRB.

"MSRB" shall mean the Municipal Securities Rulemaking Board.

(C-3)

"SEC" shall mean the Securities and Exchange Commission.

"State" shall mean the Commonwealth of Kentucky.

(B) This Agreement applies to the Bonds and any Additional Bonds (as defined in and issued under the BondResolution).

(C) This Agreement governs the Issuer's and the Board's direction to the Disclosure Agent, with respect toinformation to be made public. In its actions under this Agreement, the Disclosure Agent is acting solely as theIssuer's agent and the Board's agent.

(D) The Disclosure Agent shall have no obligation to make disclosure about the Bonds or the Project exceptas expressly provided herein. The fact that the Disclosure Agent or any affiliate thereof may have any fiduciaryor banking relationship with the Issuer or the Board, apart from the relationship created by the Bond Resolution,shall not be construed to mean that the Disclosure Agent has actual knowledge of any event or condition exceptas may be provided by written notice from the Issuer or the Board.

SECTION 2. Provision of Financial Information.

(A) The Board shall, or shall cause the Disclosure Agent to, provide to EMMA the Annual FinancialInformation not later than 270 days following the end of each fiscal year, beginning with the fiscal year endedJune 30, 2016. Not later than five (5) business days prior to such date, the Issuer or the Board shall provide theAnnual Financial Information to the Disclosure Agent.

(B) If any Annual Financial Information relating to the Board referred to in paragraph (A) of this Section 2no longer can be generated because the operations to which they related have been materially changed ordiscontinued, a statement to that effect, provided by the Board to EMMA, along with any other Annual FinancialInformation required to be provided under this Agreement, shall satisfy the undertaking to provide such AnnualFinancial Information. To the extent available, the Board shall cause to be filed, along with the other AnnualFinancial Information, other operating data similar to that which can no longer be provided.

(C) Annual Financial Information required to be provided pursuant to this Section 2 may be provided by aspecific reference to such Annual Financial Information already prepared and previously provided to EMMA, orfiled with the SEC; however, if such document is a final official statement, it must also be available from theMSRB.

SECTION 3. Reportable Events.

(A) Pursuant to the provisions of this Section 3, the Board shall, or shall cause the Disclosure Agent to,provide to EMMA notice of the occurrence of any of the following events (the "Listed Events"):

(1) Principal and interest payment delinquencies;

(2) Non-payment related defaults;

(3) Unscheduled draws on debt service reserves reflecting financial difficulties;

(4) Unscheduled draws on credit enhancements reflecting financial difficulties;

(5) Substitution of credit or liquidity providers, or their failure to perform;

(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or finaldeterminations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices ordeterminations with respect to the tax status of the security, or other material events affecting the tax status of thesecurity;

(7) Modifications to rights of security holders;

(C-4)

(8) Bond calls;

(9) Tender offers;

(10)Defeasances;

(11)Release, substitution, or sale of property securing repayment of the securities;

(12)Rating changes;

(13)Bankruptcy, insolvency, receivership or similar event of the Board;

(14)The consummation of a merger, consolidation, or acquisition involving the School District or the saleof all or substantially all of the assets of the School District other than in the ordinary course of business, the entryinto a definitive agreement to undertake such an action or the termination of a definitive agreement relating to anysuch actions, other than pursuant to its terms;

(15)Appointment of a successor or additional trustee or the change of name of a trustee.

(B) Whenever the Board obtains knowledge of the occurrence of a Listed Event described in subsections(A)(2), (7), (8), (11), (14), or (15) above, the Board shall as soon as possible determine if such event would bematerial under applicable federal securities laws. If the Board determines that knowledge of the occurrence of suchevent would be material under applicable federal securities laws, the Board shall, or shall cause the DisclosureAgent to, promptly, and no later than 10 days after the occurrence of the event, file a notice of such occurrencewith EMMA. Not later than two (2) business days prior to the date such notice must be filed with EMMA, theIssuer or the Board shall provide the details of such occurrence to the Disclosure Agent.

(C) Whenever the Board obtains knowledge of the occurrence of a Listed Event described in subsections(A)(1), (3), (4), (5), (6), (9), (10), (12), or (13) above, the Board shall, or shall cause the Disclosure Agent to,promptly, and no later than 10 days after the occurrence of the event, file a notice of such occurrence with EMMA.Not later than two (2) business days prior to the date such notice must be filed with EMMA, the Issuer or the Boardshall provide the details of such occurrence to the Disclosure Agent.

(D) Notwithstanding the foregoing, notice of Listed Events described in subsections (A)(8), (9), and (10)above need not be given under this subsection any earlier than the notice (if any) of the underlying event is givento owners of affected Bonds. For the purposes of the event identified in (A)(13) above, the event is considered tooccur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Boardin a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in whicha court or governmental authority has assumed jurisdiction over substantially all of the assets or business of theBoard, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officersin possession but subject to the supervision and orders of a court or governmental authority, or the entry of an orderconfirming a plan of reorganization, arrangement or liquidation by a court or governmental authority havingsupervision or jurisdiction over substantially all of the assets or business of the Board.

SECTION 4. Failure to Disclose. If, for any reason, the Board fails to provide the Annual FinancialInformation as required by this Agreement, the Board shall, or shall cause the Disclosure Agent to, provide noticeof such failure in a timely manner to EMMA or to the MSRB.

SECTION 5. Disclosure Agent.

(A) Duties. The Disclosure Agent shall make public the Annual Financial Information, the Listed Eventoccurrences and the failure to provide the Annual Financial Information within the applicable filing time periods.The SEC has approved the submission of continuing disclosure filings with EMMA. All continuing disclosurefilings under this Agreement shall be filed solely by transmitting such filings to EMMA at www.emma.msrb.org.

(B) Compensation. The Issuer shall pay the Disclosure Agent annually on August 1 of each year the sum of$400, plus out-of-pocket expenses of the Disclosure Agent for Disclosure Agent's services rendered in accordancewith this Agreement. The Board shall pay to the Issuer as Supplemental Rent, as reimbursement for the costs of

(C-5)

the Issuer hereunder, the sums herein set forth as provided, and subject to the limitations, in the Lease; provided,however, that the Disclosure Agent hereby waives its right to receive compensation hereunder for each year duringwhich the Disclosure Agent serves as financial advisor for the Board.

(C) Indemnification. In addition to any and all rights of the Disclosure Agent to reimbursement,indemnification and other rights pursuant to the Bond Resolution or under law or equity, the Issuer and the Boardshall, to the extent permitted by law, indemnify and hold harmless the Disclosure Agent and its respective officers,directors, employees and agents from and against any and all claims, damages, losses, liabilities, reasonable costsand expenses whatsoever (including attorney fees) which such indemnified party may incur by reason of or inconnection with the Disclosure Agent's performance under this Agreement; provided that neither the Issuer northe Board shall be required to indemnify the Disclosure Agent for any claims, damages, losses, liabilities, costsor expenses to the extent, but only to the extent, caused by the willful misconduct or gross negligence of theDisclosure Agent in such disclosure of information hereunder. The obligations of the Issuer and Board under thisSection shall survive resignation or removal of the Disclosure Agent and payment of the Bonds.

SECTION 6. Amendment or Waiver. Notwithstanding any other provision of this Agreement, the Issuer,the Board and the Disclosure Agent may amend this Agreement (and the Disclosure Agent shall agree to anyamendment so requested by the Issuer and the Board) and any provision of this Agreement may be waived, if suchamendment or waiver is supported by an opinion of nationally recognized counsel expert in federal securities lawsacceptable to the Issuer, the Board and the Disclosure Agent to the effect that such amendment or waiver wouldnot, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had beeneffective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule.

SECTION 7. Past Compliance. The Board hereby represents that it is now current with the filings requiredby its previous continuing disclosure undertakings entered into pursuant to the Rule. However, as set forth in theFinal Official Statement, certain filings were made beyond the filing dates required by such undertakings.

SECTION 8. Miscellaneous.

(A) Representations. Each of the parties hereto represents and warrants to each other party that it has (i) dulyauthorized the execution and delivery of this Agreement by the officer of such party whose signature appears onthe execution pages hereto, (ii) that it has all requisite power and authority to execute and deliver, and perform thisAgreement under its organizational documents and any corporate resolutions now in effect, (iii) that the executionand delivery of this Agreement, and performance of the terms hereof, does not and will not violate any law,regulation, ruling, decision, order, indenture, decree, agreement or instrument by which such party is bound, and(iv) such party is not aware of any litigation or proceeding pending, or, to the best of such party's knowledge,threatened, contesting or questioning its existence, or its power and authority to enter into this Agreement, or itsdue authorization, execution and delivery of this Agreement, or otherwise contesting or questioning the issuanceof the Bonds.

(B) Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of theState; provided that, to the extent that the SEC, the MSRB or any other federal or state agency or regulatory bodywith jurisdiction over the Bonds shall have promulgated any rule or regulation governing the subject matter hereof,this Agreement shall be interpreted and construed in a manner consistent therewith.

(C) Severability. If any provision hereof shall be held invalid or unenforceable by a court of competentjurisdiction, the remaining provisions hereof shall survive and continue in full force and effect.

(D) Counterparts. This Agreement may be executed in one or more counterparts, each and all of which shallconstitute one and the same instrument.

(E) Termination. This Agreement may be terminated by any party to this Agreement upon thirty days' writtennotice of termination delivered to the other parties to this Agreement; provided that termination of this Agreementis not effective until (i) the Issuer and the Board, or their respective successors, enter into a new continuingdisclosure agreement with a disclosure agent who agrees to continue to provide, to the MSRB and the Bondholdersof the Bonds, all information required to be communicated pursuant to the rules promulgated by the SEC or theMSRB (ii) notice of the termination of this Disclosure Agreement is provided to the MSRB and (iii) nationally

(C-6)

recognized bond counsel provides an opinion that the new continuing disclosure agreement is in compliance withall State and Federal Securities laws.

This Agreement shall terminate when all of the Bonds are or are deemed to be no longer outstanding by reasonof redemption or defeasance or at maturity.

(F) Defaults: Remedies. A party shall be in default of its obligations hereunder if it fails to carry out orperform its obligations hereunder.

If a default occurs and continues beyond a period of thirty (30) days following notice of default given inwriting to such defaulting party by any other party hereto or by a beneficiary hereof as identified in Section 8(G),the non-defaulting party or any such beneficiary may (and, at the request of the Original Purchaser or the holdersof at least 25% aggregate principal amount of Outstanding Bonds, shall) take such action as may be necessary andappropriate, including seeking mandamus or specific performance by court order, to compel performancehereunder. A default under this Agreement shall not be deemed an Event of Default under the Bond Resolution,and the sole remedy under this Agreement in the event of any failure to comply with this Agreement shall be anaction to compel performance.

(G) Beneficiaries. This Agreement is entered into by the parties hereof and shall inure solely to the benefitof the Issuer, the Board, the Disclosure Agent, the Original Purchaser and Bondholders and shall create no rightsin any other person or entity.

SECTION 9. Additional Disclosure Obligations. The Issuer and the Board acknowledge and understandthat other state and federal laws, including but not limited to the Securities Act of 1933, the Securities ExchangeAct of 1934 and Rule 10b-5 promulgated thereunder, may apply to the Issuer and the Board, and that under somecircumstances compliance with this Agreement, without additional disclosures or other action, may not fullydischarge all duties and obligations of the Issuer or the Board under such laws.

SECTION 10. Notices. Any notices or communications to or among any of the parties to this Agreementmay be given as follows:

To the Issuer: Boone County School District Finance Corporation8330 US Highway 42Florence, Kentucky 41042Attention: SecretaryTelephone: 859-283-1003Fax: 859-282-2376

To the Board: Board of Education of Boone County School District8330 US Highway 42Florence, Kentucky 41042Attention: SuperintendentTelephone: 859-283-1003Fax: 859-282-2376

To the Disclosure Agent: Ross, Sinclaire & Associates, LLC325 W. Main Street, Suite 300 Lexington, Kentucky 40507 Attn: PresidentTelephone: 859-977-6600 Fax: 859-381-1357

Any person may, by written notice to the other persons listed above, designate a different address or telephonenumber(s) to which subsequent notices or communications should be sent.

(C-7)

IN WITNESS WHEREOF, the Disclosure Agent, the Issuer and the Board have each caused their dulyauthorized officers to execute this Agreement, as of the day and year first above written.

BOONE COUNTY SCHOOL DISTRICT FINANCECORPORATION

By:

President

Attest:

Secretary

BOARD OF EDUCATION OF THE BOONE COUNTYSCHOOL DISTRICT

By:

Chairperson

Attest:

Secretary

ROSS, SINCLAIRE & ASSOCIATES, LLCDisclosure Agent

By:

Name:

Title:

APPENDIX D


Series 2016

Official Terms and Conditions

(D-1)

OFFICIAL TERMS AND CONDITIONS OF BOND SALE

$12,775,000*Boone County School District Finance Corporation

School Building Refunding Revenue Bonds, Series 2016BDated December 1, 2016

SALE: November 17, 2016 at 11:00 A.M., E.S.T.

As advertised in The Bond Buyer, published in New York, New York, The Courier-Journal, published inLouisville, Kentucky and the Boone County Recorder, published in Florence, Kentucky, the Secretary of the BooneCounty School District Finance Corporation (the "Corporation" or the "Issuer") will, until November 17, 2016, at the hourof 11:00 A.M., E.S.T., at the office of the Executive Director of the Kentucky School Facilities Construction, 229 WestMain St., Suite 102, Frankfort, Kentucky 40601, receive competitive bids for the revenue bonds (the "Bonds") hereindescribed. To be considered, bids must be submitted manually, by facsimile or electronically via PARITY® on anOfficial Bid Form and must be received by the Secretary on the date of sale no later than the hour indicated. Bids willbe opened by the Secretary or an agent of the Corporation and may be accepted without further action by theCorporation's Board of Directors.

The Bonds shall be in denominations in multiples of $5,000 within the same maturity, bear interest fromDecember 1, 2016, payable semi-annually on February 1 and August 1 of each year, commencing February 1, 2017, andshall mature as to principal on February 1, 2017 and August 1, 2017 and in each of the years thereafter as follows:

MATURITY AMOUNT*

February 1, 2017 $ 115,000August 1, 2017 3,205,000August 1, 2018 3,585,000August 1, 2019 3,580,000August 1, 2020 2,290,000

* Subject to Permitted Adjustment (as defined below under "BIDDING CONDITIONS ANDRESTRICTIONS").

REDEMPTION PROVISIONS

The Bonds are not subject to optional redemption prior to their stated maturities.

The Bonds are subject to extraordinary optional redemption prior to their stated maturities, in whole or in part,on any date, in such order of maturities as the Corporation may determine (less than all of a single maturity to be selectedby lot), from the proceeds of casualty insurance received upon the total destruction by fire, lightning, windstorm or otherhazard of any of the buildings constituting the Project, upon notice of such prior redemption being given by the PayingAgent by regular United States Mail to the Registered Owners of the Bonds so selected not less than thirty (30) days priorto the date of redemption, at a redemption price of 100% of the principal amount to be redeemed, plus accrued interestto the date of redemption.

Notwithstanding the foregoing, so long as the Bonds are held in book-entry-only form, notice of redemption willbe given by the Bond Registrar and Paying Agent only to the securities depository or its nominee and not to the beneficialowners of the Bonds under the book-entry-only system. Neither the Corporation nor the Bond Registrar and PayingAgent is responsible for notifying such beneficial owners, who are to be notified in accordance with the procedures ineffect for the book-entry-only system. See "BOOK-ENTRY-ONLY SYSTEM" below.

FORM OF BONDS, PAYING AGENT, PAYMENTS AND TRANSFERS

The Bonds are to be issued in fully-registered form (both principal and interest). U.S. Bank NationalAssociation, Cincinnati, Ohio, the Bond Registrar and Paying Agent, shall remit interest on each semiannual due dateto each Registered Owner of record on the 15th day of each month preceding the due date by regular United States Mailpostmarked as of the interest due date. Principal shall be paid upon submission of matured Bond certificates to the

(D-2)

Paying Agent. If payment of principal or interest is made to a securities depository or its nominee, payment shall be madeby wire transfer on the payment date in same-day funds. If the payment date occurs on a date when financial institutionsare not open for business, the wire transfer shall be made on the next succeeding business day.

Subsequent to the initial delivery of the Bonds, upon the submission of proper documentation, the Bond Registrarshall transfer ownership of Bonds within three (3) business days of receipt without expense to the Registered Owner.

BOONE COUNTY (KENTUCKY) SCHOOL DISTRICT FINANCE CORPORATION

The Corporation has been formed in accordance with the provisions of Sections 162.120 through 162.300 andSection 162.385 of the Kentucky Revised Statutes ("KRS"), and KRS Chapter 273 and KRS 58.180, as a non-profit,non-stock corporation for the purpose of financing necessary school building facilities for and on behalf of the Boardof Education of the Boone County School District (the "Board"). Under the provisions of existing Kentucky law, theCorporation is permitted to act as an agency and instrumentality of the Board for financing purposes and the legality ofthe financing plan to be implemented by the Bonds herein referred to has been upheld by the Kentucky Court of Appeals(Supreme Court) in the case of White v. City of Middlesboro, Ky. 414 S.W.2d 569.

STATUTORY AUTHORITY, PURPOSE OF ISSUE AND SECURITY

The Bonds are authorized pursuant to KRS 162.120 through 162.300, KRS 162.385 and KRS 58.180 and areissued in accordance with a Resolution of the Corporation's Board of Directors. Said Bonds are revenue bonds andconstitute a limited indebtedness of the Corporation payable from rental revenues derived by the Corporation from theBoard under the Lease identified below.

The Bonds are (a) being issued to finance the cost of currently refunding the outstanding Boone County SchoolDistrict Finance Corporation School Building Revenue Refunding Bonds, Series 2006 (the "Series 2006 Bonds"),maturing on August 1, 2017 and thereafter (the "Refunded Bonds"), the proceeds from which were used to refinance theCorporation's outstanding Series 1999 Bonds, Series 2000A Bonds and Series 2000B Bonds (collectively, the "Project"),and (b) secured by a statutory mortgage lien upon and a pledge of the revenues from the rental of the Project to the Boardunder a Contract, Lease and Option (the "Lease") on a year-to-year basis; the first rental period ending June 30, 2017.The statutory mortgage lien securing the Bonds is limited in its application to the exact site of the Project constructedfrom the proceeds of the Bonds; real estate unoccupied by the Project is unencumbered. The Board has reserved the rightto obtain the release of the statutory mortgage lien and revenue pledge on the site of the Project by effecting theredemption or defeasance of the proportionate part of the Bonds then outstanding as was expended on the site beingreleased. Should the Board default in its obligations under the Lease or fail to renew the Lease, the Registered Ownersof the Bonds have the right to have a receiver appointed to administer the Project under KRS 162.220; foreclosure andsale are not available as remedies.

The rental of the Project from the Corporation to the Board is to be effected under the Lease, whereunder theProject is leased to the Board for an initial period ending June 30, 2017, with an option in the Board to renew the Leaseeach year at rentals sufficient to provide for the principal and interest requirements on the Bonds as they become due,plus the costs of insurance, maintenance, depreciation, and bond issuance and administration expenses; the Board islegally obligated only for the initial rental period and for one year at a time thereafter each time the Lease is renewed.

Under the terms of the Lease and the Participation Agreement, and any renewals thereof or continuationsthereunder, the Board has agreed, so long as the Bonds remain outstanding, and in conformance with the intent andpurpose of KRS 157.627(5) and KRS 160.160(5), in the event of a failure by the Board to pay the rentals due under theLease, and unless sufficient funds have been transmitted to the Paying Agent, or will be so transmitted, for paying saidrentals when due, that the Corporation, as applicable, shall have the right to notify and request the Kentucky Departmentof Education to withhold from the Board a sufficient portion of any undisbursed funds then held, set aside, or allocatedto the Board and to request said Department or Commissioner of Education to transfer the required amount thereof tothe Paying Agent for the payment of such rentals.

KENTUCKY SCHOOL FACILITIES CONSTRUCTION COMMISSION

The Commission is an independent corporate agency and instrumentality of the Commonwealth of Kentuckyestablished pursuant to the provisions of Sections 157.611 thorough 157.640 of the Kentucky Revised Statutes, as

(D-3)

repealed, amended, and reenacted (the "Act") for the purpose of assisting local school districts in meeting the schoolconstruction needs of the Commonwealth in a manner which will ensure an equitable distribution of funds based uponunmet need.

The Regular Session of the General Assembly of the Commonwealth adopted the State's Budget for the bienniumending June 30, 2016. Inter alia, the Budget provides $99,334,000 in FY 2014-15 and $108,270,000 in FY 2015-16 topay debt service on existing and future bond issues; provides $100,000,000 of the Commission's previous Offers ofAssistance made during the last biennium; and authorizes $100,000,000 in additional Offers of Assistance for the currentbiennium to be funded in the Budget for the biennium ending June 30, 2018.

PROCEEDS TO RETIRE CERTAIN BONDS OF PRIOR ISSUE

The total principal amount of the Refunded Bonds currently outstanding is $12,455,000. The Refunded Bondsare payable from the income and revenues of the Project financed from the proceeds thereof. The Refunded Bonds aresecured by a statutory mortgage lien upon and a pledge of revenues from the rental of the Project to the Board under aContract, Lease and Option, dated December 1, 2006 (the "Prior Lease").

The Resolution adopted by the Corporation's Board of Directors authorizes the payment and retirement of theRefunded Bonds including principal and accruing interest, prior to their stated maturities through the deposit of therequired amount of proceeds of the Bonds into a special escrow account established for application to the redemptionof the Refunded Bonds on December 21, 2016.

The Resolution expressly provides that upon delivery of the Bonds and the deposit of sufficient funds inaccordance with the preceding paragraph neither the statutory mortgage lien upon nor the pledge of the revenues fromthe rental of the Project under the Prior Lease shall constitute the security and source of payment for any of the RefundedBonds and the Registered Owners of such Refunded Bonds shall be paid from and secured by the monies deposited insaid escrow account for the redemption thereof upon the delivery of the Bonds.

FINAL OFFICIAL STATEMENT

The Corporation shall provide to the successful bidder a Final Official Statement. Such Final Official Statementwill be provided in electronic format to the successful bidder in sufficient time to meet the delivery requirements underSecurities and Exchange Commission and Municipal Securities Rulemaking Board rules. The successful bidder shallbe required to pay for any printing of the Final Official Statement.

BIDDING CONDITIONS AND RESTRICTIONS

(A) Bids must be made on the Official Bid Form, contained in the Preliminary Official Statement availablefrom the undersigned or Ross, Sinclaire & Associates, LLC, Lexington, Kentucky, by visiting www.rsanet.com, and maybe submitted manually, by facsimile or electronically via PARITY®.

(B) Electronic bids for the Bonds must be submitted through PARITY® and no other provider of electronicbidding services will be accepted. Subscription to the PARITY® system is required in order to submit an electronic bid.The Corporation will neither confirm any subscription nor be responsible for the failure of any prospective bidders tosubscribe. For the purposes of the bidding process, the time as maintained by PARITY® shall constitute the official timewith respect to all bids whether in electronic or written form. To the extent any instructions or directions set forth inPARITY® conflict with the terms of the Official Terms and Conditions of Sale of Bonds, this Official Terms andConditions of Sale of Bonds shall prevail. Electronic bids made through the facilities of PARITY® shall be deemed anoffer to purchase in response to the Notice of Bond Sale and shall be binding upon the bidders as if made by signed,sealed written bids delivered to the Corporation. The Corporation shall not be responsible for any malfunction or mistakemade by or as a result of the use of the electronic bidding facilities provided and maintained by PARITY®. The use ofPARITY® facilities are at the sole risk of the prospective bidders. For further information regarding PARITY®,potential bidders may contact PARITY®, by telephone at (212) 404-8102. Notwithstanding the foregoing, non-electronicbids may be submitted via facsimile or by hand delivery utilizing the Official Bid Form.

(C) The minimum bid for the Bonds shall be not less than $12,647,250 (99% of par), plus accrued interest.Interest rates shall be in multiples 1/8 or 1/20 of 1% or both. Only one interest rate shall be permitted per Bond and allBonds of the same maturity shall bear the same rate. Interest rates must be on an ascending scale, in that the interest rate

(D-4)

stipulated for any maturity shall not be less than the interest rate for any preceding maturity. There is no limit on thenumber of different interest rates.

(D) The maximum permissible net interest cost for each of the Bonds shall not exceed "The Bond Buyer's"Index of 20 Municipal Bonds as established on the Thursday immediately preceding the sale of said bonds plus 1.50%.

(E) The determination of the best purchase bid for each of the Bonds shall be made on the basis of all bidssubmitted for exactly $12,775,000 principal amount of Bonds offered for sale hereunder; but the Corporation may adjustthe principal amount of Bonds which may be awarded to such best bidder upward or downward by $1,280,000 (the"Permitted Adjustment") to a minimum of $11,495,000 or a maximum of $14,055,000. In the event of such PermittedAdjustment, no rebidding or recalculation of a submitted bid will be required or permitted. The price at which suchadjusted principal amount of Bonds will be sold will be the same price per $5,000 of Bonds as the price per $5,000 forthe $12,775,000 of Bonds bid.

(F) CUSIP identification numbers will be printed on the Bonds at the expense of the Corporation. Thepurchaser shall pay the CUSIP Service Bureau Charge. Improper imprintation or the failure to imprint CUSIP numbersshall not constitute cause for a failure or refusal by the purchaser to accept delivery of and pay for the Bonds inaccordance with the terms of any accepted proposal for the purchase of the Bonds.

(G) The successful bidder will be required to wire transfer to the order of the Corporation an amount equalto 2% of the amount of the principal amount of Bonds awarded by the close of business on the day following the award.Said good faith amount will be forfeited as liquidated damages in the event of a failure of the successful bidder to takedelivery of such Bonds when ready. The good faith amount (without interest) will be applied to the purchase price upondelivery of the Bonds. The successful bidder shall not be required to take up and pay for said Bonds unless delivery ismade within 45 days from the date the bid is accepted.

(H) The Bonds shall be delivered utilizing the Book-Entry-Only System administered by The DepositoryTrust Company.

(I) The purchaser shall be required to supply the Bond Registrar with the name, address, social securitynumber or taxpayer identification number, principal amount and principal maturities for each person or entity in whosename Bonds are to be registered. Failure of a purchaser to fully designate the Registered Owners of Bonds shall resultin the issuance of Bond certificates by the Bond Registrar in the purchaser's "street name" (to the extent a purchaser failsto designate).

(J) The Corporation reserves the right to reject any and all bids or to waive any informality in any bid. TheBonds are offered for sale subject to the principal and interest not being subject to Federal or Kentucky income taxationor Kentucky ad valorem taxation on the date of their delivery to the successful bidder, in accordance with the FinalApproving Legal Opinion of Keating Muething & Klekamp PLL, Cincinnati, Ohio, which Opinion will be qualified inaccordance with the section hereof on TAX EXEMPTION.

(K) The successful bidder may require that a portion of the Bonds be term bonds maturing on one or moredates (the "Term Bonds"); provided, however, that the Term Bonds shall be subject to mandatory sinking fundredemption by lot at a redemption price of 100% of the principal amount thereof plus accrued interest to the date ofredemption on August 1 of the years and in the principal amounts set forth in the final adjusted maturity schedule asshown on the successful bid.

(L) Prospective bidders are advised that Ross, Sinclaire & Associates, LLC has been employed as FinancialAdvisor in connection with the issuance of the Bonds. Ross, Sinclaire & Associates, LLC's fee for services rendered withrespect to the sale of the Bonds is contingent upon the issuance and delivery thereof. Bidders may submit a bid for thepurchase of the Bonds at the time of the advertised public sale, either individually or as a member of a syndicateorganized to submit a bid for the purchase of the Bonds.

(M) As required by the Code, purchasers of the Bonds will be required to certify to the Corporation as tocertain of their activities regarding any reoffering to the public of the Bonds, including any reoffering prices.

(D-5)

STATE SUPPORT OF EDUCATION

The 1990 Regular Session of the General Assembly of the Commonwealth enacted a comprehensive legislativepackage known as the Kentucky Education Reform Act ("KERA") designed to comply with the mandate of the KentuckySupreme Court that the General Assembly provide for as efficient and equitable system of schools throughout theCommonwealth. KERA became fully effective on July 13, 1990. Elementary and secondary education in theCommonwealth is supervised by the Commissioner of Education, as the chief executive of the Kentucky Department ofEducation. The Commissioner is appointed by the Kentucky Board of Education, which Board consists of 11 votingmembers appointed by the Governor (seven of which members represent the Supreme Court districts and four of whichare at-large members) and one non-voting member that serves as the president of the Council on PostsecondaryEducation. Some salient features of KERA are as follows:

• KRS 157.330 establishes the fund to Support Education Excellence in Kentucky ("SEEK"), which is fundedfrom biennial appropriations from the General Assembly for distribution to school districts. The base fundingguaranteed to each school district by SEEK for operating and capital expenditures is determined in each fiscalyear by dividing the total annual SEEK appropriation by the statewide total of pupils in average daily attendance("ADA") in the preceding fiscal year; the ADA for each district is subject to adjustment to reflect the numberof at risk students (approved for free lunch programs under state and federal guidelines), number and types ofexceptional children, and transportation costs.

• KRS 157.420 establishes a formula which results in the allocation of funds for capital expenditures in schooldistricts at $100 per ADA pupil which is included in the SEEK allotment ($3,911) for the current bienniumwhich is required to be segregated into a Capital Outlay Allotment Fund which may be used only for (1) directpayment of construction costs; (2) debt service on voted and funding bonds; (3) lease rental payments in supportof bond issues; (4) reduction of deficits resulting from over-expenditures for emergency capital construction;and (5) a reserve for each of the categories enumerated in 1 through 4 above.

• KRS 160.470(9) requires that effective for fiscal years beginning July 1, 1990 each school district shall levy aminimum equivalent tax rate of $.30 for general school purposes. The equivalent tax rate is defined as the ratewhich results when the income collected during the prior year from all taxes levied by the district for schoolpurposes is divided by the total assessed value of property, plus the assessment for motor vehicles certified bythe Revenue Cabinet of the Commonwealth. Any school district board of education which fails to comply withthe minimum equivalent tax rate levy shall be subject to removal from office.

• KRS 157.440(1) provides that for fiscal years beginning July 1, 1990 each school district may levy an equivalenttax rate which will produce up to 15% of those revenues guaranteed by the SEEK program. Revenue generatedby the 15% levy is to be equalized at 150% of the statewide average per pupil assessment. Levies permitted bySection 157.440(1) are not subject to the public hearing or recall provisions set forth in KRS 160.470.

• KRS 157.440(2) permits school districts to levy up to 30% of the revenue guaranteed by the SEEK program, plusthe revenue produced by the 15% levy, but said additional tax will not be equalized with state funds and will besubject to recall by a simple majority of those voting on the question.

• KRS 157.620(1) also provides that in order to be eligible for participation from the Kentucky School FacilitiesConstruction Commission for debt service on bond issues the district must levy a tax which will producerevenues equivalent to $.05 per $100 of the total assessed value of all property in the district (including tangibleand intangible property and motor vehicles) in addition to the minimum $.30 levy required by KRS 160.470(9).A district having a special voted tax which is equal to or higher than the required $.05 tax, must commit andsegregate for capital purposes at least an amount equal to the required $.05 tax. Those districts which levy theadditional $.05 tax are also eligible for participation in the Kentucky Facilities Support ("KFS") program forwhich funds are appropriated separately from SEEK funds and are distributed to districts in accordance with aformula taking into account outstanding debt and funds available for payment from both local and state sourcesunder KRS 157.440(1)(b).

• KRS 160.460 provides that as of July 1, 1994 all real property located in the Commonwealth subject to localtaxation shall be assessed at 100% of fair cash value.

CONTINUING DISCLOSURE

(D-6)

As a result of the Board and issuing agencies acting on behalf of the Board having, at the time the Bonds referredto herein are offered for public sale, outstanding municipal securities in excess of $1,000,000, the Corporation and theBoard will enter into a written agreement for the benefit of the holders of the Bonds whereunder said Corporation andBoard will agree to comply with the provisions of the municipal securities disclosure rules set forth in Securities andExchange Commission Rule 15c2-12, as amended (the "Rule"), by filing certain financial information, operating dataand reportable event notices with the Electronic Municipal Market Access (EMMA) System maintained by the MunicipalSecurities Rule Making Board. The specific nature of the information to be contained in such filings with EMMA is setforth in Appendix C - "FORM OF CONTINUING DISCLOSURE AGREEMENT" to the Preliminary Official Statement.

The Board and the Corporation have previously entered into continuing disclosure undertakings pursuant to theRule. While the Board and the Corporation are current with the filings required by such undertakings, certain filings weremade beyond the required filing dates. As a result, the Board has filed Material Event Notices indicating its failure to fileon a timely basis the following information:

(1) An upgrade in Moody's rating of the Corporation's bonds from "Aa3" to "Aa2", effective as of April23, 2010;

(2) A downgrade in Moody's rating of the Corporation's bonds from "Aa2" to "Aa3", effective as of March30, 2011;

(3) An update to operating data and financial information for fiscal years ending June 30, 2009, 2010,2011, 2012 and 2013; and

(4) Annual audited financial statements for the fiscal year ending June 30, 2010.

The Annual Financial Information for FY ending June 30, 2012 through June 30, 2015 were filed after thedeadline (December 1).

The Board has adopted new procedures to assure timely and complete filings in the future with regard to theRule.

TAX EXEMPTION

Bond Counsel is of the opinion that:

(A) Interest on the Bonds is exempt from income taxation and the Bonds are exempt from ad valoremtaxation by the Commonwealth of Kentucky and all of its political subdivisions.

(B) Interest on the Bonds is excludable from gross income under the Internal Revenue Code of 1986, asamended (the "Code"). Furthermore, interest on the Bonds is not a specific item of tax preference for purposes of thefederal alternative minimum tax imposed on individuals and corporations.

The Corporation has covenanted to comply with the applicable provisions of the Code, and such compliance bythe Corporation is necessary to maintain the federal income tax status described above. No opinion is expressed regardingother federal tax consequences arising with respect to Bonds.


The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. TheBonds initially will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnershipnominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bondcertificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, andwill be deposited with DTC.

DTC, the world's largest depository, is a limited-purpose trust company organized under the New York BankingLaw, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal ReserveSystem, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearingagency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds andprovides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues,

(D-7)

and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC.DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions indeposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants'accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S.and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain otherorganizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC,in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities ClearingCorporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets ClearingCorporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York StockExchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access tothe DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trustcompanies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant,either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rulesapplicable to its Participants are on file with the Securities and Exchange Commission. More information about DTCcan be found at www.dtcc.com.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receivea credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("BeneficialOwner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receivewritten confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive writtenconfirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct orIndirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interestsin the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalfof Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds,except in the event that use of the book-entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the nameof DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative ofDTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee donot effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds;DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping accountof their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants toIndirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed byarrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significantevents with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bonddocuments. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for theirbenefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wishto provide their names and addresses to the Bond Registrar and request that copies of notices be provided directly tothem.

Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed,DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to beredeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unlessauthorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails anOmnibus Proxy to the Corporation as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'sconsenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date(identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., or suchother nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit DirectParticipants' accounts upon DTC's receipt of funds and corresponding detail information from the Corporation or theBond Registrar and Paying Agent, on payable date in accordance with their respective holdings shown on DTC's records.

(D-8)

Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as isthe case with securities held for the accounts of customers in bearer form or registered in "street name," and will be theresponsibility of such Participant and not of DTC or its nominee, the Bond Registrar and Paying Agent, or theCorporation, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment ofredemption proceeds, distributions, and interest payments to Cede & Co. (or such other nominee as may be requestedby an authorized representative of DTC) is the responsibility of the Corporation or the Bond Registrar and Paying Agent,disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of suchpayments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by givingreasonable notice to the Corporation or the Bond Registrar. Under such circumstances, in the event that a successordepository is not obtained, Bond certificates are required to be printed and delivered.

The Corporation may decide to discontinue use of the system of book-entry transfers through DTC (or asuccessor securities depository). In that event, Bond certificates will be printed and delivered.

The information above concerning DTC and DTC's book-entry system has been obtained from sources that theCorporation believes to be reliable, but the Corporation takes no responsibility for the accuracy thereof.

NEITHER THE ISSUER, NOR THE BOARD, NOR THE BOND REGISTRAR/PAYING AGENT WILLHAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY DIRECT PARTICIPANT, INDIRECT PARTICIPANTOR ANY BENEFICIAL OWNER OR ANY OTHER PERSON NOT SHOWN ON THE REGISTRATION BOOKSOF THE BOND REGISTRAR/PAYING AGENT AS BEING AN OWNER WITH RESPECT TO: (1) THE BONDS;(2) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANT ORINDIRECT PARTICIPANT; (3) THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANT OR INDIRECTPARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PURCHASEPRICE OF TENDERED BONDS OR THE PRINCIPAL OR REDEMPTION PRICE OF OR INTEREST ON THEBONDS; (4) THE DELIVERY BY ANY DIRECT PARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICETO ANY BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE BONDRESOLUTION TO BE GIVEN TO HOLDERS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TORECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (6) ANYCONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS HOLDER.

BOONE COUNTY SCHOOLDISTRICT FINANCE CORPORATION

By: ________________________________________Secretary

APPENDIX E


Series 2016

Official Bid Form

(E-1)

OFFICIAL BID FORM

Subject to the terms and conditions set forth in the Official Terms and Conditions of Bond Sale for $12,775,000principal amount of School Building Refunding Revenue Bonds, Series 2016B, dated December 1, 2016 (the "Bonds"), offeredfor sale by the Boone County School District Finance Corporation (the "Corporation"), an agency and instrumentality acting onbehalf of the Board of Education of the Boone County School District and in accordance with the Notice of Bond Sale, asadvertised in The Bond Buyer, published in New York, New York, The Courier-Journal, published in Louisville, Kentucky andthe Boone County Recorder, published in Florence, Kentucky, to all of which the undersigned agrees, the undersigned herebysubmits the following offer to purchase said Bonds.

We hereby bid for said $12,775,000 principal amount of the Bonds, the total sum of $__________ (not less than$12,647,250) plus accrued interest from December 1, 2016, at the following annual rate(s), payable semiannually (rates onascending scale, number of interest rates unlimited):

MATURITY AMOUNT* INTEREST RATE

February 1, 2017 $ 115,000 __________%August 1, 2017 3,205,000 __________%August 1, 2018 3,585,000 __________%August 1, 2019 3,580,000 __________%August 1, 2020 2,290,000 __________%

*Subject to permitted adjustment.

We understand this bid may be accepted for as much as $14,055,000 of the Bonds or as little as $11,495,000 of theBonds, at the same price per $5,000 Bond, with the variation in such amount occurring in any maturity of all maturities, whichwill be determined by the Corporation at the time of acceptance of the best bid.

It is understood that the Corporation will furnish the final, approving Legal Opinion of Keating Muething & KlekampPLL, Bond Counsel, of Cincinnati, Ohio.

The successful bidder shall be required to wire transfer an amount equal to 2% of the principal amount of Bonds awardedby the close of business on the day following the award. Said good faith amount will be applied (without interest) to the purchaseprice when said Bonds are tendered for delivery.

Electronic bids for the Bonds must be submitted through PARITY® and no other provider of electronic bidding serviceswill be accepted. Subscription to the PARITY® system is required in order to submit an electronic bid. The Corporation willneither confirm any subscription nor be responsible for the failure of any prospective bidders to subscribe. For the purposes ofthe bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all bids whether inelectronic or written form. To the extent any instructions or directions set forth in PARITY® conflict with the terms of theOfficial Terms and Conditions of Sale of Bonds, the Official Terms and Conditions of Sale of Bonds shall prevail. Electronicbids made through the facilities of PARITY® shall be deemed an offer to purchase in response to the Notice of Bond Sale andshall be binding upon the bidders as if made by signed, sealed written bids delivered to the Corporation. The Corporation shallnot be responsible for any malfunction or mistake made by or as a result of the use of the electronic bidding facilities providedand maintained by PARITY®. The use of PARITY® facilities are at the sole risk of the prospective bidders. For furtherinformation regarding PARITY®, potential bidders may contact PARITY® by telephone at (212) 404-8102. Notwithstandingthe foregoing non-electronic bids may be submitted to the office of the Executive Director of the Kentucky School FacilitiesConstruction Commission, 229 W. Main Street, Suite 102, Frankfort, Kentucky 40601 (Tel: 502-564-5582; Fax: 888-979-6152),via facsimile or by hand delivery utilizing this Official Bid Form. Bids must be received on the date of sale no later than the hourindicated in the Official Terms and Conditions of Bond Sale.

If we are the successful bidder, we agree to accept and make payment for the Bonds in Federal Funds within forty-five(45) days of the award and, upon acceptance by the Issuer's Financial Advisor, this Official Bid Form shall become the BondPurchase Agreement.

Respectfully submitted,

_________________________________Bidder

_________________________________Address

_________________________________Signature

(E-2)

Total interest cost from December 1, 2016to final maturity $____________________

Plus discount $____________________

Net interest cost (Total interest costplus discount) $____________________

Average interest rate or cost ___________________%

The above computation of net interest cost and of average interest rate or cost is submitted for information only and isnot a part of this Bid.

Accepted by Ross, Sinclaire & Associates, LLC, as Financial Advisor and Agent for the Boone County School DistrictFinance Corporation, for $_________________ principal amount of Bonds at the price of $_______________ as follows:

INTERESTMATURING AMOUNT RATE

02/01/2017 _________ _______%08/01/2017 _________ _______%08/01/2018 _________ _______%08/01/2019 _________ _______%08/01/2020 _________ _______%

Dated: November 17, 2016 ___________________________Ross, Sinclaire & Associates, LLC as Financial Advisorand Agent for the Boone County School DistrictFinance Corporation

Documents

PRELIMINARY OFFICIAL STATEMENT...2018/07/11 · Preliminary Official Statement and the information contained herein are subject to completion or amen dment. Under no circumstances