Farmington R-7 School District

(Often referred to as Fund 1 & Fund 2)

Operating funds support the day-to-day needs of the district, including:

• Staff salaries and benefits

• Utilities, food, and supplies

• Instructional materials, resources, and professional development

• Transportation bus driver salaries, fuel, and vehicle maintenance

• Maintenance of buildings, grounds, and equipment

The Operating Fund in the Farmington R-7 School District is the primary source of funding for ongoing educational operations: teacher pay, instructional costs, transportation, support services, and everyday expenses that keep schools open and functioning. It’s governed by Missouri statutes and DESE accounting rules that ensure funds are spent on operational needs rather than on construction or debt obligations.

(Often referred to as Fund 3)

Debt service funds are restricted funds used only to pay for voter-approved debt, such as:

• Bond payments

• Interest on long-term construction or facility projects

The Debt Service Fund is a legally restricted school district fund used only to pay back long-term debt that voters have approved.

Think of it as the district’s mortgage-and-loan payment account.

Money in this fund cannot be used for classrooms, salaries, supplies, or daily operations — and operating funds cannot be used to pay debt unless the law explicitly allows a transfer.

(Often referred to as Fund 4)

The Capital Improvements Fund (often called the Capital Projects Fund) is used only for major, long-term investments in school facilities and infrastructure.

Think of it as the district’s construction and major renovation fund.

It exists to pay for big, one-time projects that last many years, not daily school operations.

The Capital Improvements Fund is for big, long-lasting investments:

• Buildings, major renovations, land, and infrastructure.

It cannot be used to run schools day-to-day, and day-to-day funds cannot replace it.

(Think savings)

Reserves are unspent fund balances which is money the district has already received but has not yet spent.

They are not extra or hidden money, and they are not a separate fund. They are the ending balance inside each fund (Operating, Debt Service, Capital, etc.).

Think of reserves like:

• A household savings account that sits inside your checking account, not a new paycheck.