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FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS■ it o earwater FY 2011 Water & Sewer Revenue Sufficiency Analysis � � � � � Final Re ort p june 13, 2 011 Pr�ep�r�d byo BURT�I� & ASSOCIAT�ES UTILITY RATES ■ ASSESSMENTS ■ FINANCIAL PLANNING � t? : � _ �.� � BURTON & ASSOCIATES Ur.u�v R„rE.. ASSFSSm;-NL F��..,,�.._,.., P��.,.vN,,� June 13, 2011 Ms. Tracy Mercer Public Utilities Director City of Clearwater 1650 N. Arturas Avenue Clearwater, Florida 33765 Re: FY 2011 Water & Sewer Revenue Sufficiency Analysis — Final Report Dear Ms. Mercer: Burton & Associates is pleased to present this Final Report of the FY 2011 Revenue Sufficiency Analysis that we have performed for the City's Water and Sewer Enterprise Fund. We appreciate the fine assistance provided by you, your staff, and all of the members of City staff who participated in the analysis. If you have any questions, please do not hesitate to call me at (904) 247-0787. Very truly yours, .�� /�� Andrew J. Burnham Seniar Vice President BURTON & ASSOCIATES 200 Business Park Circle, Suite 101 • St Augustine, Florida 32095 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: abur�nham@burtonandassociates.com FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS TABLE OF CONTENTS TABLE OF CONTENTS SECTION1. INTRODUCTION ........................................................................................................... 1 1.1 BACKGROUND ........................................................................................................................... 1 1.2 �BJECTIVE ................................................................................................................................. 1 1.3 STUDY PROCEDURES ................................................................................................................. 2 [.y D[�ll Y[�7►i��►/_� 11•f.y f. , I 2.1 ASSUMPTIONS ............................................................................................................................4 2.2 RESULTS ...................................................................................................................................10 SECTION 3. RATE SURVEY ..............................................................................................................12 3.1 METHODOLOGY ........................................................................................................................12 32 RESULTS ...................................................................................................................................12 SECTION 4. CONCLUSIONS & RECOMMENDATIONS .............................................................15 4.1 CONCLUSIONS ...........................................................................................................................15 4.2 RECOMMENDATIONS .................................................................................................................15 APPENDIX..................................................................................................................................................17 BURTON & ASSOCIATES City of Clearwater Utility Rates • Assessments • Financial Planning � Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS INTRODUCTION SECTION 1. INTRODUCTION Burton & Associates has conducted a Revenue Sufficiency Analysis (RSA) for the City of Clearwater's Water & Wastewater Enterprise Fund (Utility). The following sections of this report describe in detail the procedures, assumptions, results, and recommendations of the RSA. 1.1 BACKGROUND In recent years, many challenges have affected the financial performance of the Utility. Pinellas County, the City's wholesale water provider, has continued to increase its wholesale rates. Aging infrastructure continues to drive the need for additional renewal and replacement projects within the Utility's capital improvement plan. However, perhaps the greatest challenge facing the Utility is the reduction in revenues caused by continued reductions in customers and demands. The lagging economy has resulted in increased foreclosures and sustained demand reductions due to vacancies. Moreover, a combination of the current economic conditions and continued conservation awareness has caused many of the Utility's customers to continue to reduce the quantity of water they are using. With these challenges and many others ahead, the City retained Burton & Associates to evaluate the adeguacy of the revenue provided by its current rates to meet its financial requirements over a five-year planning period and ten-year projection period. In addition, the Utility requested Burton & Associates update a detailed water demand and customer account analysis performed in a prior RSA to continue to understand the trends and magnitude of these recent reductions and to develop updated customer and demand projections for use within this RSA. 1.2 OBJECTIVE The objective of this RSA was to evaluate the sufficiency of the Utility's current plan of approved water and wastewater rate increases and to develop an alternative plan of near- BURTON & ASSOCIATES 1 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS INTRODUCTION term and future increases that would provide adequate revenue to fund the Utility cost requirements over a multi-year projection period while recognizing the effects of recent and projected customer and demand reductions, increasing purchased water costs, and increasing renewal and replacement requirements. The current approved plan of annual water and wastewater rate increases is identified in the following table. It is important to note that the water rate increases are applied to irrigation rates as well as reclaimed water rates. Table 1. Currently Approved Rate Adjustment Plan FY 2012 FY 2013 W ate r* 6.00% 6.00% Reclaimed Water 6.00% 6.00% a Wastewater 6.00% 6.00 0 *Rate increases applicable to Potable and Irrigation rates. 1.3 STUDY PROCEDURES During the conduct of this RSA, we evaluated the Utility's financial management plan by examining the impact of key parameters (such as reduced customers and demand, price elasticity, increasing reclaimed water usage, increasing purchased water costs, additional renewal and replacement and operating expenses, etc.) upon important financial indicators by use of graphical representations projected on a large viewing screen from our computer rate models. In this way, we evaluated the adequacy of the Utility's current plan of annual rate increases to provide sufficient revenues to fund the Utility's cost requirements through FY 2013 and identified an alternative plan of equal annual increases over the entire projection period that would meet the financial requirements, goals, and objectives of the Utility. In arder to initiate the RSA, we obtained the Utility's historical and budgeted financial information regarding the operation of the Water and Wastewater Enterprise Fund. We also obtained the Utility's multi-year capital improvement program (CIP) and the Utility's current debt obligations and the covenants, or promises made to bond holders or other lenders, relative to net income coverage requirements, reserves, etc. We also counseled with City staff regarding other assumptions and policies that would affect the BURTON & ASSOCIATES 2 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS INTRODUCTION Water and Wastewater Enterprise Fund such as required levels of reserves, interest earnings rates, escalation rates for operating costs, increases to wholesale water costs, etc. All of this information was entered into our Financial Analysis and Management System (FAMS) interactive model. The FAMS model produces a multi-year projection of the sufficiency of the Utility's revenues to meet all of its current and projected financial requirements and determines the level of rate revenue increases necessary in each year to provide sufficient revenues to fund all of the Utility's requirements. FAMS also utilizes all available and unrestricted funds in each year of the projection period to pay for capital projects, in accordance with the cash application rules in the model as defined with City staf£ This produces a detailed summary of the funding sources to be used for each project in the CIP. To the extent that current revenues and unrestricted reserves are not adequate to fund all capital projects in any year of the projection period, the FAMS model identifies a borrowing requirement to fund those projects or portions thereof that are determined to be eligible for borrowing. In this way, the FAMS model is used to develop a borrowing program that includes the required borrowing amount by year and the resultant annual debt service obligations of the Utility for each year in the projection period. BURTON & ASSOCIATES 3 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS SECTION 2. ANALYSIS This section presents the results of the analysis and the financial management plan developed during the conduct of this RSA. The first sub-section presents a description of the base data, assumptions, and policies of the RSA. The second sub-section provides the results of the RSA, while the Appendix includes detailed financial analysis schedules supporting the financial management plan identified herein. f_►?��:T.Y.YI �j►l i 71-Y_-[�7�(.� During the conduct of the RSA, we communicated with City staff regarding various data and assumptions used in the development of the financial management plan presented herein. The base data, assumptions, and policies included in the RSA are as follows: Be.ig nning Fund Balances — The Utility's Comparative Balance Sheet and Restricted Asset Statement for September 30, 2010 provided the historical financial information used to establish the beginning FY 20ll balances for each of the various funds. It is important to note that funds reserved or encumbered for specific capital projects were included in the beginning fund balances available for capital projects in FY 2011 and the associated capital project costs were included in the CIP in FY 2011 through FY 2014�. Base Revenues — The revenues utilized in the RSA reflect a combination of estimated FY 2011 results and FY 2011 Budget amounts. The estimated FY 2011 results include estimated customer and usage growth and a the adopted 7% rate increase for FY 2011. � Based upon a historical capital spending analysis performed by City staff, $40 million of prior year carry- over projects in the FY 2011 CIP were spread over FY 2011 — FY 2014, with $14 million in FY 2011, $10 million in FY 2012, and $8 million in FY 2013 and FY 2014. BURTON & ASSOCIATES 4 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS Revenues consist of water (including irrigation) and wastewater rate revenues and all other categories of revenue. Table 2 below presents a comparison of the projected rate revenues from the FY 2010 RSA and the actual and estimated information utilized in the current FY 2011 RSA. As can be seen, the FY 2011 revenue estimate from this RSA is about $155,000 (.25%) higher than the proj ected amount from the FY 2010 RSA. Table 2. Actual/Estimated Revenues vs. FY 2010 RSA Projections FY 2010 FY 2011 Actual/Estimated Rate Revenue* $53,602,500 $56,796,694 FY 2010 RSA Projected Revenue* $53,571,410 $56,641,803 Difference $31,090 $154,891 *Rate Revenue includes Water, Irrigation, Reclaimed Water, and Sewer Revenue. For each year after FY 2011, rate revenues in this RSA are adjusted based upon assumed rate increases, customer gowth, and changes in demand. All other non-rate revenues were based upon the FY 2011 Budget and escalated annually based upon the escalation factors provided by City staff (excluding reclaimed water revenues, which were calculated annually based upon the number of connections, assumed usage, and rates in each fiscal year). Customer Growth — As stated previously, we performed a parallel analysis of the Utility's historical account and demand data. Relative to accounts or customers, we specifically reviewed changes in the number of active accounts by month during the past 8 years. Based upon this review, we developed annual forecasts of active accounts for each service type that are reflected in this RSA that recognize 1) an extension of the current economic conditions in the near-term, and 2) a gradual return to histarical number of active accounts over the next ten years. Schedule 2 of the Appendix includes detailed projections of active accounts for water, irrigation, sewer, and reclaimed water service. Forecast of Billed Demands — The analysis of historical billed demands was based upon a review of the Utility's monthly billing consumption by service and customer class for the BURTON & ASSOCIATES 5 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS past 4 fiscal years. The results of this analysis concluded that a portion of the recent demand reductions have been caused by a reduction in the number of active accounts (average of 10 domestic water accounts lost per month during the past 12 months). However, the majority of the recent demand reductions is largely a result of declining average usage per account (see Table 3). From FY 2007 - FY 2011 it is estimated that the Utility will experience a 13.2% reduction in total billed potable water demand. Given the likelihood of an extended economic downturn, we anticipate that this trend will continue and estimate that average use per single-family residential account per month will decline to 4,070 gallons in FY 2012. Across all customer classes, we anticipate an additional 2.2% reduction to total billed potable water demand in FY 2012. Table 3. Changes in Billed Potable Water Demand from FY 2008 to FY 2011 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 est. Total Annual Demand (In Thousand 3,783,983 3,645,912 3,493,028 3,370,436 3,268,337 Gallons)* Percentage Change -3.65% -4.19°a -3.51% -3.03°0 Average Monthly Single-Family 4,930 4,710 4,540 4,292 4,160 Demand/Account Percentage Change -4.55% -3.61% -5.38% -3.07% *Includes Single-Family, Multi-Family, Commercial, Government, and Industrial Demands. We incorporated the multi-year billed demand projections into the RSA for each service (which include both the effects of changes in use per account and the annual changes in accounts described previously). Schedule 2 of the Appendix includes detailed projections of billed demand by service. Reclaimed Water Use Revenue Im�acts — As reclaimed water is made available to more customers and reclaimed water usage increases, there will be a reduction in the Utility's potable irrigation customers and demands as well as a corresponding reduction in the amount of wholesale water that has to be purchased. As such, there will also be a reduction in lawn irrigation revenues as they are replaced by lower revenues from reclaimed water customers. The net effect of these reclaimed water impacts causes BURTON & ASSOCIATES 6 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS projected rate increases to be larger. The customer and demand projections for lawn irrigation and reclaimed water service on Schedule 2 include the impact of the continued expansion of the reclaimed water system. Price Elasticitv — This adjustment is incorporated into the FAMS model to reflect that as rates increase, discretionary water usage will likely decline. Therefore, in order to generate sufficient revenue, projected rate increases will have to be adjusted to reflect a smaller usage base to which they will be applied, thus causing the projected rate increases to be larger. The price elasticity adjustment reduces all usage revenues by the product of the annual rate increase and the annual assumed elasticity coefficient. In each year of the projection period the price elasticity coefficient is 0.30, meaning for every 10% increase in rates, there is a resulting 3% reduction in consumption. Interest Earnin�s — The projection of interest earnings on invested funds (including funds dedicated for CIP projects) was calculated in each year based upon a computation of average fund balances in each year of the analysis and assumed annual interest rates of 2.00% in FY 2011 and 2.50% per year in FY 2012 and each year thereafter for the remainder of the projection period. Base Operatin�Expenditures — To offset the impacts of the recent observed revenue reductions resulting from decreasing customers and demands, City staff has undertaken several cost containment/cutting initiatives. Table 4 presents a comparison of the projected operating expenditures (excluding purchased water costs) from the FY 2010 RSA and the estimated/projected information utilized in the current RSA. As can be seen, the Utility's estimated operating expenditures for FY 2011 and proposed budgeted expenditures for FY 2012 are both lower than the projections of the FY 2010 RSA. Table 4. Estimated/Budgeted Expenditures vs. FY 2010 RSA Projections FY 2011 FY 2012 Currently Estimated/Budgeted Expenditures* FY 2010 RSA Projected Expenditures* Difference $28,149,315 $30,307,492 $29,288,629 $30,960,881 ($1,139,314) ($653,389) *Expenditures exclude purchased water costs, debt service, PILOT, lease-purchase expenses, and renewal & replacement transfer. BURTON & ASSOCIATES 7 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS The FY 2011 revenue requirements in this RSA are based principally upon the FY 2011 Budget, which reflects all operations and maintenance (O&M) expenses, other miscellaneous expenses, debt service requirements, and inter-fund transfers. Future O&M expense adjustments, not included in the FY 2011 Budget, were provided by staff. O&M Cost Additions — In addition to the base budgeted amounts of O&M expenses, incremental operating costs have been included in the RSA, mainly relating to additional water supply and treatment expenses associated with planned facility expansions. The complete list of all additional/incremental O&M costs not included in the Utility's FY 2011 Budget that were included in the RSA are shown on Schedule 7. Cost Escalation — Annual cost escalators for the various types of O&M expenses were provided by City staff and applied in each year of the projection period beginning in FY 2012. A summary of the specific cost escalation factors are displayed in Schedule 1 of the Appendix. Payment in Lieu of Taxes — The annual calculation of the payment in lieu of taxes transfer is based upon 5.50% of the prior year's total operating revenues in each year of the projection period. Total Demand and Purchased Water Expenses — The total forecasted demand that is purchased by the City is based upon the billed demand projections described previously and is assumed to be approximately 5.45 million gallons per day (MGD) in FY 2011. However, there are several projects in the CIP that seek to reduce the City's reliance on Pinellas County's Water Supply. These projects reduce purchased water demands throughout the projection period such that by FY 2016 the City plans to significantly reduce the amount purchased water from Pinellas County. It is the goal of the City to provide as much of the City's average dai]y flow demand locally, however it is anticipated that the City will rely upon the County and Regional System for maintenance, peaking and emergency supply. The annual amount of water purchased is multiplied against the projected wholesale water rate of Pinellas County in order to determine the purchased water expense each year that is incorparated into the RSA. BURTON & ASSOCIATES 8 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS Increases in Pinellas Countv Water Rates — For purposes of this analysis, it is assumed that Pinellas County wholesale water rates charged to the City will increase by 6% in FY 2012 and FY 2013 and then by 4% annually thereafter. These increase assumptions were based upon projections identified in the most recent rate study performed for Pinellas County� available at the time this analysis was conducted. Minimum Working Capital — The plan assumes that the Utility will maintain a minimum Working Capital Reserve fund balance in an amount equal to three months of O&M and purchased water expenses. Capital Projects Funding — The CIP was provided by City staff through FY 2017. Beginning in FY 2018, unspecified future capital projects were projected based upon the average annual CIP spending for the preceding five years. Borrowin� Assumptions — To the extent new debt would be required in any year of the projection period to fund a portion of the CIP, the FAMS model calculates debt service with the following terms: Table 5. Borrowing Assumptions Long-Term Debt: Term 30 Years Interest Rate 6.00% Interim Financing: Term 1 Year Interest Rate 2.00 - 2.50% It is assumed that any interim borrowings would be refinanced the following year and included in a long-term revenue bond or bank loan. � Water, Sewer & Reclaimed Water Utility Rate Analysis: Work Element I Final Report, May 12, 2010. BURTON & ASSOCIATES g City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS Debt Service Pavment Schedule — All future revenue bond issues, as calculated by FAMS, are assumed to be issued in the middle of the fiscal year. As a result, only an interest payment is made in the year in which each bond is issued. All subsequent years reflect full annual principal and interest payments. Interim Financin� — The analysis assumes the use of interim financing in FY 2011 and every odd year thereafter; while it assumes long-term borrowing, or revenue bonds, are issued in FY 2012 and every even year thereafter. All interim financing issues are assumed at the beginning of the iiscal year and are refinanced in the subsequent year as part of the long-term borrowing. Until refinanced as part of the subsequent bond issue, the only carrying costs for the interim financing are interest-only payments. FY 2012 & FY 2014 Revenue Bond Assumptions — Based upon the wrapped debt service schedule parameters provided by Raymond James & Associates, the City's Financial Advisor, the model reflects interest only payments during the projection period on any bonds required in FY 2012 and FY 2014. Debt Service Covera�e — There are two debt service coverage tests in the Utility's outstanding bond covenants as follows: • Rate Covenant — Net income must be at least 1.15 times annual debt service; however, the Utility endeavors to maintain a coverage ratio of 1.50 to maximize the Utility's credit rating and lower future borrowing costs. • Parity Test — Net income must be at least 1.20 times maximum annual debt service (only in years when revenue bonds are issued). 2.2 RESULTS The steady reduction in billed water demand has had a measurable impact on the revenues of the Utility. However, the revenue impacts from demand reductions have largely been offset by 1) the avoidance of purchased water expenses due to demand reductions and increases of City production capacity, and 2) operating cost containment initiatives undertaken by City staff. BURTON & ASSOCIATES 10 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ANALYSIS Using our financial forecasting model, we determined that while the approved plan of 6% rate increases in FY 2012 and FY 2013 would be sufficient, followed by 3.75% annual increases from FY 2014 through FY 2021. Alternatively, the Utility could establish a new plan of equal annual rate increases of 4.50% starting in FY 2012 extending throughout the projection period. While both plans would provide adequate revenue to meet the Utility's operating and capital cost, debt service coverage, and reserve requirements through FY 2021, we recommend that the Utility implement the plan of level annual rate increases in order to minimize utility rate increases over the two years in consideration of the current economy. Table 6. Recommended Financial Management Plan Water* Reclaimed Water Wastewater FY 2012 - 21 4.50% 4.50% 4.50% *Rate increases applicable to Potable and Irrigation rates. 2.2.1 Financial Results of Operations and Sources and Uses of Funds The Appendix presents Schedules 1 through 12 that support the financial management plan identified in this report. The schedules presented in the Appendix reflect a projection period that extends through FY 2021. While the immediate five-year period is most important, our analysis extends beyond this time period so that any significant costs or revenue shortfalls just outside of the first five years may be identified and potentially addressed in the current RSA to avoid future financial harm and adverse rate impacts to customers. BURTON & ASSOCIATES 11 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS RATE SURVEY SECTION 3. RATE SURVEY As part of the RSA, we prepared a residential rate survey that compares the current monthly bill for the Utility's typical residential user to that of neighboring communities. The rate survey was performed in order to provide an understanding of the current market range of typical residential utility costs and how the Utility fits within that range. 3.1 METHODOLOGY The rate survey was conducted during the spring of calendar year 2011 and the rates presented in the survey were in effect at the time the survey was created for single family residential custoiners (i.e. FY 2011 rates). The monthly bill calculations are presented for the typical residential customer in the City based upon water use of 4,000 gallons per month. The rates used in the survey were based upon information available on each utility's website, provided by its billing department, and/or published in rate ordinances as available on Municode.coin. The utilities surveyed were: Clearwater, Dade City, Dunedin, Gulfport, Hillsborough County, New Port Richey, Oldsmar, Pasco County, Pinellas County, Port Richey, Safety Harbor, St. Petersburg, Tampa, Tarpon Springs, Temple Terrace, and Zephyrhills. 3.2 RESULTS The results of the survey indicate that the Utility has a monthly bill that is comparable to the average of the utilities surveyed. Table 7 shows that the FY 20ll monthly water and sewer bill in the City ($50.56) is about $4.14 greater than the median bill ($46.42) of the utilities surveyed. BURTON & ASSOCIATES 12 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS RATE SURVEY Table 7. Monthly Residential Water & Sewer (Using 4,000 gals.) Water & Sewer System Water Sewer Total Hillsborough County $22.37 $31.72 $54.09 Oldsmar $27.83 $24.99 $52.82 Clearwater $21.92 $28.64 $50.56 Dunedin $21.90 $28.56 $50.46 Safety Harbor $19.42 $29.62 $49.04 Temple Terrace $13.05 $35.52 $48.57 Pinellas County $22.47 $25.86 $48.33 Tarpon Springs $19.89 $27.07 $46.96 Pasco County $16.52 $29.90 $46.42 Port Richey $16.60 $29.57 $46.17 Gulfport $20.74 $25.29 $46.03 St. Petersburg $20.18 $24.72 $44.90 Dade City $13.24 $27.53 $40.77 New Port Richey $16.99 $22.93 $39.92 Tampa $9.83 $23.42 $33.25 Zephyrhills $8.66 $21.19 $29.85 Median (excluding Clearwater) $46.42 Mean (excluding Clearwater) $45.17 The information presented in the table above is shown graphically below. Figure 1. Combined Water & Sewer Bill Survey @ 4,000 Gallons per Month Combined Water & Sewer Bill Survey @ 40U0 Galfons Per Month zeonvrnn�: - 7ampa New Port Hichey �ade Gty 51. Petersburg Gulfport Part Fliehey Pasw County 7arpon Sprfngs Plnellas Ca�nty Temple Terrace Safery Har6or �unedin [learwater bldsmar H611sborough faunky $o.ao Slo.00 $zo.oa 5ao.00 $ao,00 gsa.oa �WaterBill Sewer9ill BURTON & ASSOCIATES 13 Utility Rates • Assessments • Financial Planning F� City of Clearwater Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS RATE SURVEY 3.2.1 Future Considerations It is important to note that this survey is a"snapshot in time" for FY 2011. With the multitude of financial and water demand pressures each utility is currently facing, many of the monthly bills shown in this survey are certain to change in FY 2012 and beyond. Several cities currently have approved multi-year or automatic annual rate adjustment plans in place for FY 2012 and subsequent years, including Clearwater, Tarpon Springs, Dunedin, and New Port Richey to name a few. Similarly, other utilities are currently conducting or intend to conduct rate studies that will likely result in rate adjustments for FY 2012 and future years as well, including Pinellas County, St. Petersburg, New Port Richey, and Zephyrhills. Therefore, while we will continue to perform such surveys as part of future revenue sufficiency analyses to reflect the most current and updated rate informa�ion for neighboring communities, we do not expect that the City will vary significantly from the median bill of the utilities surveyed in the future. BURTON & ASSOCIATES 14 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS CONCLUSIONS & RECOMMENDATIONS SECTION 4. CONCLUSIONS & RECOMMENDATIONS This section presents the conclusions and recommendations of the RSA. 4.1 CONCLUSIONS We have reached the following conclusions regarding the sufficiency of the City's water and wastewater rates over the projection period: • Based upon the assumptions and supporting data described in Section 2.1, the current plan of annual water and wastewater rate increases through FY 2013 should generate sufficient revenue to fund the Utility's system requirements during that time, including annual operating requirements and CIP expenditures, existing and new debt service, and adequate working capital reserves. • In FY 2014 and thereafter, 3.75% annual water, irrigation, reclaimed water, and wastewater rate increases should generate sufficient revenue to fund the Utility's cost requirements for the remainder of the projection period, while meeting the financial performance goals and objectives of the Utility. • Alternatively, the Utility could implement annual 4.50% water and wastewater rate increases from FY 2012 through FY 2021 to generate sufficient revenue to fund the Utility's system requirements during that time, including annual operating requirements and CIP expenditures, existing and new debt service, and adequate working capital reserves. 4.2 RECOMMENDATIONS Based upon the analysis presented herein and the conclusions presented in the prior subsection, we recommend the following: BURTON & ASSOCIATES 15 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS CONCLUSIONS & RECOMMENDATIONS • The City should adopt annual 4.5% water and wastewater rate increases for the next five-year planning period (FY 2012 — FY 2016). • We strongly recommend that the City continue to review the financial performance of the Utility on an annual basis and evaluate the adequacy of its revenues and current plan of rate increases. Doing so will allow for the recognition of updated revenue and expense information and changes in economic conditions so that any necessary adjustments can be made to planned rate increases in order to allow the Utility to meet its requirements during the projection period and minimize rate impacts to customers from future events occurring differently than currently projected. BURTON & ASSOCIATES 16 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS ►e��»►��►:� Appendix Supporting Schedules for the Revenue Sufficiency Analysis Schedules 1 through 6 present detailed schedules of the inputs and assumptions utilized in the RSA Schedule 1: contains the assumptions of the analysis Schedule 2: contains the customer and demand projections from FY 2011— FY 2021 Schedule 3: contains the end of FY 2010 fund balances that serve as the FY 2011 beginning balances Schedule 4: provides a listing of the CIP that was utilized in this analysis Schedule 5: contains a detailed list of all projected cash inflows from FY 2011 through FY 2021 Schedule 6: contains a detailed list of all projected cash outflows from FY 2011 through FY 2021 Schedule 7: contains a detailed list of all projected incremental O&M expenses due to capital projects Schedules 8 through 12 identify the results of the financial management plan Schedule 8: contains the FAMS Control Panel that presents a summary of the financial management plan, including annual rate increases, debt service coverage ratios, total CIP spending levels, customer impacts, and fund balances Schedule 9: is the Pro Forma schedule that presents a projected income statement, debt service coverage analysis, and cash flow analysis Schedule 10: shows a summary of the funding sources utilized to pay for CIP Schedule 11: contains the calculation of projected annual long-term borrowing Schedule 12: presents a fund-level cash flow reconciliation, providing the beginning balance in each year, the amount utilized for project funding or payment of debt service, interest calculations, and the end of year fund balance BURTON & ASSOCIATES 17 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 1 - Assumptions APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Cost Escalation Fadors: Inflationary Cost Escalator for Expenses (unless N/A 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% other escalator is specified) Internal5ervice Charges Cost Escalator N/A 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 510500 520100 520200 520400 520700 520900 521000 522000 530100 531100 540300 InternalService Charge CodesSubjectto Cost 541000 541100 541200 541600 542100 542300 542500 542700 543100 543300 543400 EscalatorAbove 543500 543600 544100 544600 545100 546100 546200 546400 547100 547200 547300 547400 548000 550100 550400 551000 551500 557100 557300 564000 571300 572200 590200 593100 Salaries & Overtime Cost Escalator N/A 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Health Insurance Cost Escalator N/A 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% EMP Pension Plan (% of Salaries) N/A 24.00% 27.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% AdditionalOPEBAccrual N/A 2.18% 7.47% 7.54% 2.58% 11.42% 4.49% 14.19% 8.12% 7.25% 7.25% PILOT(%ofCurrentYearOperatingRevenue) N/A 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% Elec-Util Charges N/A 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Pinellas County Rate Increase N/A 6.00% 6.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Average Annual Cost Escalation N/A 4.23% 0.41% 1.82% 16.75% -4.71% 3.97% 3.53% 3.84% 3.79% 3.70% I�act Fees: Water $ 480 480 480 480 480 480 480 480 480 480 480 Sewer $ 900 900 900 900 900 900 900 900 900 900 900 Average Annual Interest Earnings Rate: Revenue Account 2.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Renewal & Replacement Account 2.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Bond Funds (New Issues) 2.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Other Assumntions: Price Elasticity: 0.30 0.30 030 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 Working Capital Reserve Target (Months of O&Mj: 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Percent of Budget for Desired Rate Increase Operations & Maintenance Expenses: 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Capital5pending: 70% 157% 130% 152% 100% 100% 100% 100% 100% 100% 100% Debt Assumptions: Debt Service Reserve Fund 1 Year(s) of Debt Service Capitalized Interestto Bond Sinking Fund OYear(s) Interest Total Costs of Issuance 2.5% of Par Term of Issuance 30Years Annual Interest Rate 6.00% Rate Covenant: 1.5 x Debt Service Parity Test: 1.20 x Debt Service Debt Service Structure: Level Debt Service BURTON & ASSOCIATES 18 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 2- Growth and Demand Projections APPENDIX FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1 AnnualGrowth: (Actual) (Estimated) (Projected) (Projected) (Projected) (Projected) (Projected) (Projected) (Projected) (Projected) (Projected) (Projected) 2 WaterGrowth: 3 Accounts 32,562 32,430 32,430 32,430 32,480 32,555 32,630 32,705 32,780 32,855 32,930 33,005 a Annual Projected Growth in Accounts (132) 0 0 50 75 75 75 75 75 75 75 5 PercentageChangeinAcrounts -0.41% 0.00% 0.00% 0.15% 0.23% 013% 013% 013% 013% 0.23% 0.23% 6 Consumption (Annual Thousand Gallons) 3,370,436 3,265,337 3,196,295 3,148,434 3,121,881 3,098,536 3,075,329 3,052,259 3,029,326 3,006,528 2,983,865 2,968,119 7 AnnualProjectedChangeinTotalConsumption (102,095) (72,042) (47,861) (26,552) (23,345) (23,207) (23,070) (22,933) (22,798� (22,663) (15,746) 8 PercentageChangeinAnnualConsumption -3.03% -2.20% -1.50% -0.84% -OJS% -OJS% -OJS% -OJS% -OJS% -OJS% -0.41% 9 Irrigation Growth: 10 Accounts 11 Annual Projected Grawth in Accounts 12 PercentageChangeinAcmunts 13 Consumption (Annual Thousand 6allons) l4 Annual Projected Change in Total Cansumption 15 PercentageChangeinAnnualConsumption 15 Reclaimed WaterGrowth: v Flat Rate Accounts 15 Annual Projected Growth in Accounts 19 Metered Acmunts zo Annual Projeded Growth in Acrounts 21 CumulativePercentageChangeinAccaunts z� Consumption (Annual Thousand Gallons) 23 Annual Projected Change in Total Consumption 24 PercentageChangeinAnnualConsumption zs SewerGrowth: 26 Accounts 27 Annual Projected Growth in Accounts zs PercentageChangeinAcmunts 29 Usage (Annual Thousand Gallons) 3o Annual Projected Change in Total Usage 31 PercentageChangeinAnnualUsage 32 Pinellas County Purchased Water Projections 33 TOTALBiIIedDemand(MGD) 34 Adj. for Lost & Unaccounted for Water 35 CITY-BASEDProduction 36 Pinellas County Purchased Water(MGD) 37 Rate(per1000gaIJ 3s ForecostRatelncreases 39 Forecast Purchased WaterExpense 2,927 232, 907 2,191 2,191 1, 991 1, 882 1, 864 1, 846 1, 827 1, 809 1, 791 1, 773 1, 754 (736) o �zoo� �ios� �ls� �is� �is� �is� �is� �is� �is� -25.14% 0.00% -9.13% -5.45% -0.97% -0.98% -0.99% -1.00% -1.01% -1.02% -1.03% 200,040 190,114 181,961 175,034 176,683 175,341 174,008 172,685 171,371 170,066 169,792 (32,867) (9,927) (8,153) (3,927) (1,351) (1,342) (1,333) (1,323) (1,314) (1,305) (274) -14.11% -4.96% -419% -2.16% -0.76% -OJ6% -0.76% -OJ6% -OJ6% -OJ6% -0.16% 402 1,807 1,732 2,207 2,522 2,372 2,222 2,072 1,922 1,772 1,622 1,472 i,aos ��s� a�s ais (iso) (iso� �iso) (iso) �iso� (iso) (iso� 2,426 2,871 2,946 3,221 3,456 3,656 3,856 4,056 4,256 4,456 4,656 4,556 445 75 275 235 200 200 200 200 200 200 200 65.42% 0.00% 16.03% 10.13% 0.84% 0.83% 0.82% 0.82% 0.81% 0.80% 0.80% 1,409,610 1,476,678 1,484,252 1,553,040 1,620,773 1,659,332 1,756,471 1,822,228 1,886,636 1,949,723 2,011,514 2,081,269 67,068 7,604 68,758 67,733 68,559 67,139 65,757 64,408 63,087 61,790 69,755 4.76% 0.51% 4.63% 4.36% 4.23% 3.97% 3.74% 3.53% 3.34% 3.17% 3.47% 33,082 33,046 33,046 33,046 33,060 33,080 33,101 33,122 33,143 33,164 33,154 33,205 (36) o o ia zi zi zi zi Zi zi zi -0.11% 0.00% 0.00% 0.04% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 3,379,873 3,287,285 3,225,002 3,192,686 3,180,048 3,171,109 3,162,157 3,153,191 3,144,211 3,135,218 3,126,211 3,128,125 (92,SS8) (59,283) (35,316) (12,639) (8,938) (8,952) (8,966) (S,9S0) (8,993) (9,007) 1,914 -2J4% -1.80% -1.09% -0.40% -0.28% -0.28% -0.28% -0.25% -0.29% -0.29% 0.06% 9.87 9.50 9.25 9.12 9.04 8.97 8.91 8.84 8.77 8.71 8.64 8.61 11.00% 11.14 10.55 1030 10.13 10.04 9.96 9.89 9.81 9.74 9.66 9.59 9.55 4.32 5.10 5.70 6.70 7.20 7.20 11.50 11.50 11.50 11.50 11.50 11.50 6.82 5.45 4.60 3.43 2.84 2.76 N/A N/A N/A N/A N/A N/A N/A $3.30 $3.50 $3.71 $3.86 $4.01 $4.17 $4.34 $4.51 $4.69 $4.88 $5.07 N/A N/A 6.00% 6.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% N/A $ 6,561,718 $ 5,871,092 $ 4,639,441 $ 3,990,801 $ 4,040,495 $ - $ - $ - $ - $ - $ - BURTON & ASSOCIATES 19 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 3- Beginning Balances APPENDIX FUND BALANCES Water Impact Fees Sewer Impact Fees Capital Projects Fund Renewal & Replacement RevenueFund Restricted Reserves TOTAL CONSOLIDATED FUND BALANCE 9/30/2010 $ 1, 648, 213 $ 5, 848,124 $ 24,943,084 $ 13, 667, 894 $ 32,163,431 $ 14,015,380 $ 92,286,126 CU RRENT U N RESTRI CTED ASSETS Cash and Investments - Petty Cash $ - Cashandlnvestments-AvailableOperatingCash $ 29,025,774 Interest Receivable $ 633,622 Accounts and Contracts Receivable $ - Billed $ 3,155,817 Unbilled $ 2,077,200 Less: Allowance for Uncollectible Accounts $ (101,794) Due From Other Funds $ - Due From Other Governmental Entities $ - Due From Developers $ - Inventories, at Cost $ 858,090 PrepaidExpensesandOtherAssets $ 6,130 TOTALCURRENTUNRESTRICTEDASSETS $ 35,654,839 Less: Accounts and Contracts Payable $(1,361,902) Less: Accrued Payroll $ (384,391) Less: Accrued Interest Payable $ (23,138) Less: Due to Other Funds $ - Less: Due to Other Governmental Entities $ - Less: Due to Other Funds (Deficit and Pooled Cash) $ - Less: Deposits $ - Less: Deferred Revenues $ - Current Portion of Long-Term Liabilities $ - Less: Compensated Absences $ - Less: Revenue Bonds $ (824,753) Less: Notes, Loan Pool Agreement and Acquisition Contracts $ (39,134) Less: Cash and Investments - Petty Cash $ - NET UNRESTRICTED WORKING CAPITAL $ 33,021,521 Less: Inventories, at Cost $ (858,090) Less: Restricted Reserves Available forClP $ - NETUNRESTRICTEDWORKINGCAPITALAVAILABLE $ 32,163,431 RESTRICTED ASSETS Restricted Cash and Investments $ 21,061,861 Interest Receivable $ 116,183 CustomerDeposits $ 2,591,911 TOTALRESTRICTEDASSETS $ 23,769,955 Less: Accrued Interest Payable $ (3,052,417) Less: Current Portion of Long-Term Liabilities, Revenue Bonds $(4,110,247) Less: Customer Deposits $ (2,591,911) NET RESTRICTED BALANCE $ 14,015,380 RESERVES AVAILABLE FOR CAPITAL FUNDING Assets in Utility Renewal & Replacement Fund Cash & Investments- In Projects Interest Receivable Total Assets in Utilitv Renewal & Replacement Fund Assets in 09A Bond Construction Fund Cash & Investments- In Projects Interest Receivable Less: Construction Contracts Payable Total Assets in 08 Bond Construction Fund BURTON & ASSOCIATES 20 Utility Rates • Assessments • Financial Planning $ 13, 582, 766 $ 85,128 $ 13,667,894 $ 27,089,633 $ 221,008 $ (2,367,557; $ 24,943,084 City of Clearwater Final Report Schedule 4- Capital Improvement Program FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX Project Description FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 i WATER PROJECTS z Cleveland Streetscp Phs II $ 125,703 - - - - - - - - - - s Cleveland Streetscp Phs II $ 319,941 - - - - - - - - - - 4 Painting of Facilities $ - - - - - - - - - - - s Citywide Connect $ 65,000 - - - - - - - - - - 5 Citywide Aerial Photography $ 5,500 - - 2,000 - - 2,000 - - - - � Publ Util Admin Bldg R&R $ 18,204 - - - - - - - - - - s Publ Util Admin Bldg R&R $ 118,361 10,000 10,000 10,000 10,000 10,000 10,000 - - - - 9 System R&R-Maint $ 107,167 - - - - - - - - - - 10 System R&R-Maint $ 51,790 450,000 450,000 450,000 50,000 50,000 50,000 - - - - ii System R&R-Maint $ 266,572 - - - - - - - - - - iz Recl Wtr Dist Syst-Grants $ 6,206,493 200,000 200,000 200,000 200,000 200,000 2,000,000 - - - - 13 Recl Wtr Dist Syst $ 569,413 - - - - - - - - - - ia Recl Wtr Dist Syst $ 1,576,158 - - - - - - - - - - 15 Water Supp-Trtmnt $ 950,000 50,000 50,000 50,000 50,000 50,000 50,000 - - - - i5 Water Supp-Trtmnt $ 133,901 - - - - - - - - - - n Syst R&R-Capitlzd $ 22,590 - - - - - - - - - - is Syst R&R-Capitlzd $ 1,036,070 200,000 200,000 200,000 200,000 100,000 100,000 - - - - i9 Line Reloo-Capitlzd $ 239,390 - - - - - - - - - - zo Line Reloc-Capitlzd $ 1,043,173 400,000 400,000 400,000 400,000 400,000 400,000 - - - - z1 Line Reloc-Capitlzd $ 1,347,846 - - - - - - - - - - zz Line Reloc-Capitlzd-Future Bds $ 600,000 - - - - - - - - - - z3 Mtr/Back Flow Prev Dev Change $ 2,859,068 100,000 100,000 100,000 100,000 100,000 100,000 - - - - za System Expnsn $ 1,501,151 87,570 22,540 20,210 29,010 27,780 - - - - - zs System Expnsn $ - 162,430 227,460 229,790 220,990 222,220 100,000 - - - - z5 WaterSvcLines $ 659,000 100,000 100,000 100,000 100,000 100,000 100,000 - - - - z� WaterSvcLines $ 228,026 - - - - - - - - - - zs WaterSvcLines $ 558,910 - - - - - - - - - - z9 ElevaWtrTkUpgd $ 1,020,874 - - - - - - - - - - 3o Telemetry for Wells $ 219,620 - - - - - - - - - - ai Telemetry for Wells $ 301,980 - - - - - - - - - - 3z Wellfield Expnsn $ 3,819 - - - - - - - - - - 33 Wellfield Expnsn $ 894 - - - - - - - - - - 3a Wellfield Expnsn $ 884,358 - - - - - - - - - - 35 RO Plant Expsn Rl $ 6,277,962 - - - - - - - - - - 36 RO Plant Expsn R1 $ 3,599 - - - - - - - - - - 3� RO Plant Expsn Rl $ 4,137,601 - - - - - - - - - - 3s RO Plant Expsn Rl-Future Bds $ 3,420,330 - - - - - - - - - - 39 Water Quality Mon Devices $ 591,745 - - - - - - - - - - ao Rvrs Osmosis @ Resv#2 $ 3,753,264 500,000 1,592,580 - - - - - - - - 41 Rvrs Osmosis @ Resv#2 $ 1,711,051 - - - - - - - - - - az Rvrs Osmosis @ Resv #2-Fut Bds 5 1,296,930 1,500,000 6,407,420 - - - - - - - - a3 Rebate- Well, Lake Pond, Irig Abatemnt $ 155,685 25,000 25,000 25,000 25,000 25,000 20,000 - - - - aa Rebate- Well, Lake Pond, Irig Abatemnt $ 50,000 - - - - - - - - - - as Groundwater Replenishment Facility- Future Bds $ 768,140 768,140 3,985,250 4,000,000 4,050,000 - - - - - - 46 Automated Meter Reading - Fut Bds $ 3,000,000 500,000 500,000 500,000 500,000 2,000,000 2,000,000 - - - - a� Arsenic Treatment RO#3 $ - 185,000 1,050,000 - - - - - - - - as Future Water Expansion Projects $ - - - - - - - 220,000 214,000 206,800 198,160 a9 Future Water Non-Expansion Projects $ - - - - - - - 6,931,850 5,304,170 5,157,604 5,052,125 so WATER PROJECTS TOTAL $ 48,207,279 5,238,140 15,320,250 6,287,000 5,935,000 3,285,000 4,932,000 7,151,850 5,518,170 5,364,404 5,250,285 BURTON & ASSOCIATES 21 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 4- Capital Improvement Program APPENDIX Project Description FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 si SEWER PROJECTS 5z WWTP Screw Pump Replacement $ 1,771,845 200,000 372,000 - 100,000 602,000 - - - - - s3 WWTP Screw Pump Replacement $ 109,075 - - - - - - - - - - sa Bio Solids Trtmnt $ 2,306,449 - - - - - - - - - - 55 Bio Solids Trtmnt $ 36,705 - - - - - - - - - - s6 Odor Control $ 193,699 - - - - - - - - - - 57 Odor Control $ 144,190 - - - - - - - - - - 58 Odor Control $ 179,899 - - - - - - - - - - s9 WWTP Generator Replacements $ 2,263,339 - - - - - - - - - - 5o WWTP Generator Replacements $ 789,977 - - - - - - - - - - 6i WWTP Gen Rplcmnts-Futr Bds $ 200,000 - - - - - - - - - - 6z WWTP New Presses $ 165,603 - - - - - - - - - - 53 WWTP New Presses $ 2,527,584 - - - - - - - - - - 6a WWTP Aeration Improvements $ 127,396 - - - - - - - - - - 55 Liquid Disinfection $ 174,435 - - - - - - - - - - 55 Liquid Disinfection $ 159,429 - - - - - - - - - - a� Sanitary Swr Extnsn �l� $ - - - - - - - - - - - 6s Sanitary Swr Extnsn �l� $ - - - - - - - - - - - 69 Sanitary Swr Extnsn �l� $ - - - - - - - - - - - �o Sanitary Util Reloc $ 23,550 - - - - - - - - - - �i Sanitary Util Reloc $ 1,142,414 125,000 125,000 125,000 125,000 125,000 125,000 - - - - �z Sanitary Util Reloc $ 26,072 - - - - - - - - - - �3 Laboratory Upgrd $ 603,424 100,000 200,000 75,000 100,000 25,000 25,000 - - - - �a Laboratory Upgrd $ 56,270 - - - - - - - - - - 75 Facilities Upgrd & Impr $ 300,000 2,500,000 1,200,000 1,000,000 1,000,000 1,000,000 1,000,000 - - - - �6 Facilities Upgrd & Impr $ 677,222 - - - - - - - - - - �� Facilities Upgrd & Impr $ 342,464 - - - - - - - - - - �8 WPC R&R $ 201,969 - - - - - - - - - - �9 WPC R&R $ 17,437 - - - - - - - - - - sa WPC R&R $ 897,553 - - - - - - - - - - si WPC R&R-Fut Bds $ 900,000 2,000,000 1,000,000 600,000 1,000,000 1,000,000 1,000,000 - - - - sz Sanitary Swr R&R $ 4,994,330 1,719,170 1,365,570 943,490 1,218,080 1,117,110 1,500,000 - - - - 83 SanitarySwrR&R $ 4,476,107 816,380 - - 321,7Z0 - - - - - - sa Sanitary Swr R&R $ 3,523,635 - - - - - - - - - - ss Sanitary Swr R&R-Future Bds $ 34,400 464,450 1,334,430 1,756,510 1,460,200 1,582,890 1,500,000 - - - - s5 WWTP East Bypass & NE Pump $ 286,853 - - - - - - - - - - a� WWTP East Bypass & NE Pump $ 1,798,183 - - - - - - - - - - ss WWTP E. Bypass & NE Pump - Fut Bds $ - - - 40,000 - - - - - - - 89 WPC - Poll StorTk $ 3,278 - - - - - - - - - - 90 WPC - Poll Stor Tk $ 9,330 - - - - - - - - - - 9i Pump Stn Rplcmnt $ 2,052,685 1,250,000 1,000,000 2,000,000 2,000,000 2,000,000 2,000,000 - - - - 9z Pump Stn Rplcmnt $ 1,608,677 - - - - - - - - - - 93 NE Thermal Dryers-Future Bds $ - - - - 2,157,370 10,497,310 3,637,480 - - - - 9a WWTP UV Disinfect-Fut Bds $ - 500,000 3,500,000 800,000 800,000 800,000 1,648,000 - - - - 9s Future Sewer Expansion Projects $ - - - - - - - - - - - 96 Future Sewer Non-Expansion Projects $ - - - - - - - 11,780,832 12,117,598 7,073,118 10,431,268 97 Sewer Expansion Projects �l� $ 4,267,000 2,705,000 901,000 1,811,000 2,288,000 1,691,000 1,028,000 7,841,000 6,914,000 2,426,000 5,225,000 9s SEWER PROJECTS TOTAL $ 39,392,478 12,380,000 10,998,000 9,151,000 12,570,370 20,440,310 13,463,480 19,621,832 19,031,598 9,499,118 15,656,268 BURTON & ASSOCIATES 22 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 4- Capital Improvement Program APPENDIX Project Description FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 99 Siemens Energy Saving Projects �Z� $ - - - - - - - - - - - ioo Total CIP Budget (in FY 2011 dollars) $ 87,599,757 17,618,140 26,318,250 15,435,000 18,505,370 23,725,310 18,395,480 26,773,682 24,599,768 14,923,522 20,978,552 101 Cumulative Projected Cost Escalation 0.0% 3.5% 7.1% 10.9% 14.8% 18.8% 22.9% 27.2% 31.7% 36.3% 41.1% ioz Resulting CIP Funding Level $ 87,599,757 18,234,775 28,186,846 17,120,742 21,244,165 25,185,668 22,608,045 34,056,124 32,397,895 20,340,761 29,600,738 103 Annual CIP Execution Percentage�3� 70.3% 156.8% 130.4% 151.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 1oa Final CIP Funding Level $ 61,599,757 28,584,775 36,754,846 25,992,742 21,244,165 28,185,668 22,608,045 34,056,124 32,397,595 20,340,761 29,600,738 1. The Sewer System Expansion (SSE) CIP has 6een revised to reflect Scenario 7, the 20-Year Schedule, per the 55ETechnical Memo issued on 12-ll-2010. 2. Projects included in detailed listingabove per CityStaff. 3.PerCityStaff,$40millionofcommittedFY2011CIPwasre-distributedoverFY2011-FY2014asfollows:$14millioninFY2011, $lOmillioninfY2012,$8millioninFY2013,and$8millioninFY2014. BURTON & ASSOCIATES 23 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 5- Projection of Cash Inflows APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1 Rate Revenue Growth Assumptions z Growth in WaterAccounts -0.41% 0.00% 0.00% 0.15% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 3 Growth in Water Usage -3.03% -2.20% -1.50% -0.84% -0.75% -0.75% -0.75% -0.75% -0.75% -0.75% -0.41% n Growth in Lawn Irrigation Accounts -25.14% 0.00% -9.13% -5.45% -0.97% -0.98% -0.99% -1.00% -1.01% -1.02% -1.03% 5 Growth in Lawn Irrigation Usage -14.11% -4.96% -4.29% -2.16% -0.76% -0.76% -0.76% -0.76% -0.76% -0.76% -0.16% 6 Growth in Reclaimed WaterAccounts 65.42% 0.00% 16.03% 10.13% 0.84% 0.83% 0.82% 0.82% 0.81% 0.80% 0.80% 7 6rowth in Reclaimed WaterUsage 4.76% 0.51% 4.63% 4.36% 4.23% 3.97% 3.74% 3.53% 3.34% 3.17% 3.47% 8 6rowthinSewerAccounts -0.11% 0.00% 0.00% 0.04% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 9 GrowthinSewerUsage -2.74% -1.80% -1.09% -0.40% -0.28% -0.28% -0.28% -0.28% -0.29% -0.29% 0.06% 10 Assumed Rate Revenue Increases 11 Assumed WaterRate Increase N/A 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 1z Assumed Lawn Irrigation Rate Increase N/A 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 13 Assumed Reclaimed Water Rate Increase N/A 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 14 AssumedSewerRatelncrease N/A 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% i5 Water&SewerRateRevenue 16 Water Rate Revenue 17 Service Availability Charges $12,996,918 13,564,174 14,169,321 14,826,080 15,521,554 16,Z52,326 17,016,658 17,821,254 18,665,820 19,550,309 20,476,603 18 Usage Charges $10,779,768 10,934,045 11,176,850 11,504,566 11,850,477 12,206,792 12,572,526 12,953,521 13,347,781 13,753,872 14,221,875 19 Lawn Irrigation Rate Revenue 2o ServiceAvailabilityCharges $ 422,257 441,258 419,018 414,007 428,439 443,332 458,698 474,549 490,898 507,757 525,139 z1 Usage Charges $ 1,610,666 1,599,621 1,599,920 1,635,837 1,696,475 1,759,351 1,824,548 1,892,152 1,962,252 2,034,941 2,123,087 zz Reclaimed Water Rate Revenue (1) z3 ServiceAvailabilityCharges $ 1,099,065 655,796 795,186 915,174 964,356 1,016,112 1,070,572 1,127,877 1,188,170 1,251,607 1,318,346 z4 Usage Charges $ 915,540 1,444,999 1,569,768 1,700,894 1,840,653 1,987,008 2,140,244 2,300,651 2,468,525 2,644,171 2,840,512 zs Sewer Rate Revenue 26 Service Availability Charges $18,719,858 19,659,058 20,572,535 21,527,589 22,551,569 23,609,039 24,720,241 25,859,477 27,271,398 28,711,755 30,099,094 27 Usage Charges $10,252,622 10,504,112 10,811,142 11,188,966 11,606,072 12,037,748 12,490,339 12,939,417 13,541,474 14,180,741 14,800,440 28 Total Water & Sewer Rate Revenue $56,796,694 58,503,063 61,113,739 63,713,113 66,459,595 69,311,708 72,293,828 75,368,899 78,936,318 52,635,153 86,405,096 29 OtherOperatingRevenue 30 343312 WaterService Charges $ 200,000 200,000 200,000 200,000 200,000 200,000 Z00,000 200,000 200,000 200,000 200,000 31 343322 Material & WaterService $ 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 32 343324 Fire Line Detect Instilln $ 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 33 3433510ther Water Revenue $ 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 34 343523 WPC Fee Safety Harbor $ 1,275,200 1,313,456 1,352,860 1,393,445 1,435,249 1,478,306 1,522,655 1,568,335 1,615,385 1,663,847 1,713,762 35 3435510therSewerRevenue $ 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 35 343555 Grease Ordinance Revenue $ 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 37 3435561ndustrial Pretreatment $ 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 38 343321WaterTaps $ - - - - - - - - - - - 39 343525SewerTaps $ - - - - - - - - - - - 40 354104 Late Payment Fee $ 271,000 271,000 271,000 271,000 271,000 271,000 271,000 271,000 271,000 271,000 271,000 41 354109 Pretreatment Permit Violations $ - - - - - - - - - - - 42 362101 Rents-Commercial Property $ 12,000 12,000 12,000 1Z,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 BURTON & ASSOCIATES 24 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 5- Projection of Cash Inflows APPENDIX 43 Other Opereting Revenue Continued 44 362102 Rent/Lease Land-Future Use $ 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 45 3645231nsurance Proceeds- Other $ - - - - - - - - - - - 46 365101 Sale Of Scrap $ 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 47 369416CapLabor-Water $ 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 48 369413 Cap Labor-Sewer $ - - - - - - - - - - - 49 369905 Workers Comp Reimburse $ 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5o Total Other Operating Revenue $ 2,187,200 2,225,456 2,264,860 2,305,445 2,347,249 2,390,306 2,434,655 2,480,335 2,527,385 2,575,847 2,666,461 51 Other Non-Operating Revenue 52 Interest Earned on Unrestricted Funds $ 929,395 390,122 226,582 229,112 250,533 263,530 262,278 272,099 282,122 292,873 303,832 53 Interest Earned on Restricted Funds $ 280,308 353,144 355,904 397,437 438,970 473,889 508,808 547,760 586,712 616,574 646,437 54 Interest Earned on Construction Fund $ 461,998 1,230,478 1,368,712 1,278,458 1,039,205 954,722 932,743 1,003,156 1,135,888 1,086,838 1,005,487 55 Capitalized Interest From New Borrowing $ - - - - - - - - - - - 56 Less: Interim Financing Payments $ - - (642,241) - (407,744) - (332,644) - (573,347) - (374,682) 57 Total Non-Operating Revenue $ 1,671,701 1,973,744 1,308,956 1,905,007 1,320,964 1,692,141 1,371,186 1,823,015 1,431,374 1,996,286 1,581,073 5s Impact Fee Revenue 59 Water Expansion Fees $ - - 24,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 6o Sewer Expansion Fees $ - - 12,461 18,692 18,692 18,692 18,692 18,692 18,692 18,692 18,692 61 Total Impact Fee Revenue $ - - 36,461 54,692 54,692 54,692 54,692 54,692 54,692 54,692 54,692 62 Total Revenue $60,655,595 63,002,263 64,724,016 67,978,257 70,182,499 73,448,847 76,154,360 79,726,940 82,949,770 87,261,977 90,707,323 (1) Reclaimed water revenue reflects re-distribution of revenues between service availability and usage charges per new rate structure starting in FY 2012. BURTON & ASSOCIATES 25 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 01345 ADMINISTRATION 1 Personal5ervices 2 Full Time Salaries & Wages $ 353,550 $ 360,621 $ 367,833 $ 375,190 $ 382,694 $ 390,348 $ 398,155 $ 406,118 $ 414,240 $ 422,525 $ 430,975 3 Overtime $ 3,750 $ 3,825 $ 3,902 $ 3,980 $ 4,059 $ 4,140 $ 4,223 $ 4,308 $ 4,394 $ 4,482 $ 4,571 4 Life Ins $2500 Empl & Pens $ 40 $ 41 $ 42 $ 44 $ 45 $ 46 $ 48 $ 49 $ 51 $ 52 $ 54 5 1% Lifelnsurance-Employee $ 380 $ 391 $ 403 $ 415 $ 428 $ 441 $ 454 $ 467 $ 481 $ 496 $ 511 6 Samp Life Insurance $ 820 $ 845 $ 870 $ 896 $ 9�3 $ 951 $ 979 $ 1,008 $ 1,039 $ 1,070 $ 1,102 7 MajorMedical Ins-Emp $ 37,200 $ 37,200 $ 37,200 S 37,200 S 37,200 $ 37,200 $ 37,200 $ 37,200 $ 37,200 $ 37,200 $ 37,200 s Social Security-Employee $ 15,890 $ 16,367 $ 16,858 $ 17,363 $ 17,884 $ 18,421 $ 18,973 $ 19,543 $ 20,129 $ 20,733 $ 21,355 9 Emp Pension Plan $ 40,110 $ 87,467 $ 100,368 $ 113,751 $ 116,026 $ 118,346 $ 120,713 $ 123,128 $ 125,590 $ 128,102 $ 130,664 lo AdditionalOPEBAccrual $ 7,585 $ 7,750 $ 8,329 $ 8,957 $ 9,188 $ 10,237 $ 10,697 $ 12,215 $ 13,207 $ 14,164 $ 15,191 11 WorkersCompensation $ 2,380 $ 2,451 $ 2,525 5 2,601 $ 2,679 $ 2,759 $ 2,542 $ 2,927 $ 3,015 $ 3,105 $ 3,199 1z Disability Insurance $ 1,740 $ 1,792 $ 1,846 $ 1,901 S 1,958 S 2,017 S 2,078 $ 2,140 $ 2,204 $ 2,270 $ 2,338 13 Total Personal Services $ 463,445 S1S,751 540,176 562,298 573,084 584,906 596,362 609,103 621,550 634,199 647,160 14 15 16 17 18 19 za 21 22 23 24 zs 26 27 2S 29 30 31 32 33 34 35 36 37 3S 39 40 41 42 43 44 45 Operations & Maintenance Expenses Professional Services Other Contrectual Serv Postage Interfd OtherServ Chgs Interfd Admin Service Chg Advertising Other Promotion Activity Printing & Binding Equipt Rental Insurance Ofc Equip Svc & Repair Uniforms-Employee Travel Expense-Emp Mileage Reimbursement Meals-Employee Other Services Or Charges Office Supplies Operating Supplies & Matls Memberships/Subs/Lic Emp Offid Recognition-Emp Training& Ref Employee Telephone Service Variable Radio Svo-Fixed Telephone Svc Fixed Postal Service Risk Mgmt Service Info Technology Charge Garage Variable Bldg & Maint-Variable Employee Benefits-Fixed Total O&M Expenses $ S s $ $ $ $ 5 $ $ S $ 5 � � s � $ $ $ � � $ s s � S S S s � 80,000 100 60 44,400 81,920 750 750 500 600 1, 310 50 890 8,400 4, 750 100 150 3,000 3,000 28, 900 60 7, 700 940 360 560 800 1, 280 13, 500 1,000 200 920 256,950 5 $ $ � 5 5 5 $ � $ 5 5 $ 5 $ 5 � $ $ $ $ � 5 s $ S � 5 5 � 82,400 103 62 45,732 84,378 773 773 515 618 l, 349 52 917 8,652 4,893 103 155 3,090 3,090 29, 767 62 7,931 968 371 577 824 l, 318 13,905 1,030 206 948 295,559 5 $ $ � 5 5 5 $ � $ 5 5 � 5 5 5 $ 5 $ $ 5 � 5 s 5 $ $ S S $ sa,s�z S 106 $ 64 $ 47,104 $ 86,909 $ 796 $ 796 $ 530 $ 637 $ 1,390 S 53 $ 944 $ 8,912 $ 5,039 $ 106 $ 159 5 3,183 $ 3,183 $ 30,660 $ 64 $ 8,169 $ 997 $ ssz $ 594 S sa9 S 1,358 $ 14,322 $ Z,o6i S ziz 5 976 $ 304,425 s�,ais S 109 $ 66 $ 48,517 $ 89,516 $ 820 $ 820 $ 546 $ 656 $ 1,431 S 55 $ 973 $ 9,179 $ 5,190 $ 109 $ 164 $ 3,278 $ 3,278 $ 31,580 $ 66 $ 8,414 $ 1,027 $ 393 $ 612 S s�a 5 1,399 $ 14,752 $ 1,093 $ 219 5 1,005 $ 313,558 90,041 $ 113 $ 6S $ 49,973 $ 92,202 $ 844 $ 844 $ 563 $ 675 $ 1,474 $ 56 S 1,002 $ 9,454 $ 5,346 $ 113 S 169 $ 3,377 $ 3,377 $ 32,527 $ 68 $ 8,666 $ 1,058 $ 405 $ 630 S 90o S 1,441 $ 15,194 $ 1,126 $ 225 $ 1,035 $ 322,965 92,742 $ 116 $ 70 $ 51,472 $ 94, 968 $ 869 $ 869 $ SSO $ 696 $ 1,519 $ 58 $ 1,032 $ 9,738 $ 5,507 $ 116 $ 174 $ 3,478 $ 3,478 $ 33,503 $ 70 $ 8,926 $ 1,090 $ 417 $ 649 $ 9z� 5 1,484 $ 15,650 $ 1,159 $ 232 $ 1, 067 $ 332,654 95,524 $ 119 $ 72 $ 53,016 $ 97,817 $ 896 $ 896 $ 597 $ 716 $ 1,564 $ 60 $ 1,063 $ 10,030 $ 5,672 $ 119 $ 179 $ 3,SS2 $ 3,582 $ 34,508 $ 72 $ 9,194 $ 1,122 $ 430 $ 669 $ 9ss 5 1,528 $ 16,120 $ 1,194 $ 239 $ 1,099 $ 342,633 98,390 $ 123 $ 74 $ 54, 606 $ 100,751 $ 922 $ 922 $ 615 $ 738 $ 1, 611 $ 61 $ 1,095 $ 10,331 $ S,S42 $ 123 $ 184 $ 3,690 $ 3,690 $ 35,543 $ 74 $ 9,470 $ 1,156 $ 443 $ 689 $ 9sa 5 1,574 $ 16, 603 $ 1,230 $ 246 $ 1,131 $ 352,912 101, 342 $ 127 $ 76 $ 56,245 $ 103,774 $ 950 $ 950 $ 633 $ 760 $ 1,659 $ 63 $ 1,127 $ 10, 641 $ 6, 017 $ 127 $ 190 $ 3,800 $ 3, 800 $ 36,610 $ 76 $ 9,754 $ 1,191 $ 456 $ 709 $ Z,o13 5 1,621 $ 17,101 $ 1,267 $ 253 $ 1,165 $ 363,500 104,352 $ 130 $ 78 $ 57,932 $ 106,587 $ 979 $ 979 $ 652 $ 783 $ 1,709 $ 65 $ 1,161 $ 10,960 $ 6,198 $ 130 $ 196 $ 3, 914 $ 3, 914 $ 37,708 $ 78 $ 10,047 $ 1,226 $ 470 $ 731 $ Z,o4a 5 1,670 $ 17, 614 $ i,3os S 261 $ 1, 200 $ 374,405 107,513 134 81 59, 670 110,094 1,008 1,008 672 806 1, 761 67 1,196 11, 289 6, 384 134 202 4,032 4,032 38,839 81 10,348 1,263 484 753 1,075 1, 720 18,143 1, 344 269 1, 236 355,637 46 TOTA101345ADMINISTRATION $ 750,395 514,309 844,602 575,856 896,049 917,560 938,995 962,015 985,050 1,008,604 1,032,797 BURTON & ASSOCIATES 26 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 6-Projection of Cash Outflows APPENDIX FV 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FV 2017 FV 2018 FY 2019 FY 2020 FY 2021 01346 WASTEWATER COLLECTION 47 PersonalServices 48 Full Time Salaries & Wages $ 1,022,050 1,042,491 1,063,341 1,084,608 1,106,300 1,128,426 1,150,994 1,174,014 1,197,494 1,221,444 1,245,873 a9 Overtime $ 60,000 61,200 62,424 63,672 64,946 66,245 67,570 65,921 70,300 71,706 73,140 so Life Ins $2500 Empl & Pens $ 10 10 11 11 11 12 12 12 13 13 13 51 Samp Lifelnsurance $ 120 124 127 131 135 139 143 148 152 157 161 5z MajorMedicallns-Emp $ 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 53 Social Security-Employee $ 15,040 15,491 15,956 16,435 16,928 ll,435 17,959 18,497 19,052 19,624 20,213 54 Emp Pension Plan $ 259,700 264,886 303,957 344,484 351,374 358,401 365,569 372,581 380,338 387,945 395,704 55 AdditionalOPEBAccrual $ 20,411 20,854 22,412 24,102 24,724 27,547 25,784 32,868 35,537 38,113 40,575 56 WorkersCompensation $ 45,900 47,277 48,695 50,156 51,661 53,211 54,807 56,451 58,145 59,889 61,686 57 CWA Life Insurance $ 1,620 1,669 1,719 1,770 1,823 1,878 1,934 1,992 2,052 2,114 2,177 58 Total Personal Services $ 1,579,851 1,609,002 1,673,641 1,740,369 1,772,902 1,808,294 1,542,772 1,880,785 1,918,083 1,956,004 1,994,842 59 Operations & Maintenance Expenses 6o Professional5ervices $ 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 52,191 53,757 61 OtherContractualServ $ 10,820 11,145 11,479 11,823 12,178 12,543 12,920 13,307 13,706 14,118 14,541 5z Telephone-Util Chgs $ 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067 5,219 5,376 53 Postage $ 300 309 318 328 338 348 35S 369 380 391 403 5a InterfdSvcChg-OtherFund $ 33,010 34,000 35,020 36,071 37,153 38,268 39,416 40,598 41,816 43,071 44,363 65 InterfdOtherServChgs $ 268,180 276,225 284,512 293,048 301,839 310,894 320,221 329,828 339,722 349,914 360,411 65 InterfdAdminServiceChg $ 341,360 351,601 362,149 373,013 384,204 395,730 407,602 419,830 432,425 445,397 455,759 67 Advertising $ 150 155 159 164 169 174 179 184 190 196 202 68 Other Promotion Activity $ 300 309 318 328 33S 348 358 369 380 391 403 69 Printing&Binding $ 1,300 1,339 1,379 1,421 1,463 1,507 1,552 1,599 1,647 1,696 1,747 7o Dump Fee $ 8,600 8,858 9,124 9,397 9,679 9,970 10,269 10,577 10,894 11,221 11,558 71 Taxes $ 250 258 265 273 281 290 299 307 317 326 336 72 EquiptRental $ 4,500 4,944 5,092 5,245 5,402 5,565 5,731 5,903 6,080 6,263 6,451 �3 Insurance $ 241,470 245,714 256,176 263,861 271,777 Z79,930 288,328 296,978 305,887 315,064 324,515 74 OtherEquipSvc&Repair $ 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 75 Uniforms-Employee $ 7,250 7,468 7,692 7,922 8,160 8,405 8,657 5,917 9,184 9,460 9,743 75 Travel Expense-Emp $ 3,500 3,605 3,713 3,525 3,939 4,057 4,179 4,305 4,434 4,567 4,704 77 Mileage Reimbursement $ 500 515 530 546 563 S80 597 615 633 652 672 7S Meals-Employee $ 400 412 424 437 450 464 47S 492 507 522 538 79 OtherServices OrCharges $ S00 515 530 546 563 S80 597 615 633 652 672 80 Office Supplies $ 3,000 3,090 3,183 3,278 3,377 3,475 3,582 3,690 3,500 3,914 4,032 Si OperatingSupplies&Matls $ 130,000 133,900 137,917 142,055 146,316 150,706 155,227 159,884 164,680 169,621 174,709 82 MedicalSupplies $ 50 52 53 55 56 SS 60 61 63 65 67 83 Memberships/Subs/LicEmp $ 980 1,009 1,040 1,071 1,103 1,136 1,170 1,205 1,241 1,279 1,317 S4 Offid Recogni[ion-Emp $ 250 258 265 273 281 290 299 307 317 326 336 85 Training & Ref Employee $ 2,820 2,905 2,992 3,081 3,174 3,269 3,367 3,468 3,572 3,679 3,790 86 Garage Services $ 312,040 321,401 331,043 340,975 351,204 361,740 372,592 383,770 395,253 407,141 419,356 87 Telephone Service Variable $ 3,110 3,203 3,299 3,398 3,500 3,605 3,714 3,525 3,940 4,058 4,180 ss RadioSvc-Fixed $ 9,630 9,919 10,216 10,523 10,839 11,164 11,499 11,544 12,199 12,565 12,942 s9 TelephoneSv�Fixed $ 2,810 2,894 2,981 3,071 3,163 3,258 3,355 3,456 3,560 3,666 3,776 90 RiskMgmtService $ 5,350 5,511 5,676 5,846 6,021 6,202 6,385 6,580 6,�77 6,981 7,190 91 Info Technology Charge $ 50,600 52,118 53,682 55,292 56,951 58,659 60,419 62,232 64,099 66,022 68,002 9z Garage Variable $ 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360 93 Administrative Charge $ 545,050 561,402 578,244 595,591 613,459 631,862 650,815 670,343 690,453 711,167 732,502 94 Employee Benefits-Fixed $ 3,820 3,935 4,053 4,174 4,299 4,425 4,561 4,698 4,539 4,954 5,134 95 Total O&M Expenses $ 2.043,700 2,305,011 2,168,161 2,233,206 2,300,202 2,369,208 2,440,285 2,513,493 2,SS8,89S 2,666,565 2,746,562 96 TOTAL01346WASTEWATERCOLLECTION $ 3,623,551 3,714,013 3,841,802 3,973,575 4,073,104 4,177,502 4,283,057 4,394,278 4,506,981 4,622,569 4,741,404 BURTON & ASSOCIATES 27 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows 01347 WASTEWATER MAINTENANCE 97 PersonalServices 9S Full Time Salaries & Wages 99 Overtime 10o MajorMedical Ins-Emp 101 Social Security-Employee 102 Emp Pension Plan 103 AdditionalOPEBAccrual l0a CWA Life Insurance los TotalPersonal5ervices FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $ 838,710 855,484 872,594 $ 66,000 67,320 68,666 $ 117,800 117,800 117,800 $ 9,510 9,795 10,089 $ 217,130 221,473 254,140 $ 17,386 ll,763 19,090 $ 1,500 1,545 1,591 $ 1,268,036 1,291,181 1,343,971 890,046 70,040 117, 800 10, 392 258,026 20,529 907,847 71,441 117, 800 10, 704 293, 786 21,059 926, 004 72, 869 117, 800 11, 025 299, 662 23,464 1, 398, 471 1, 424, 324 1, 45 2, 562 944,524 963,414 982,682 74,327 75,513 77,330 117,800 117,800 117,800 11,355 11,696 12,047 305,655 311,768 318,004 24,518 27,997 30,270 1,791 1,845 1,900 1, 479, 970 1, 510, 334 1, 540, 033 1,002,336 1,022,353 78,876 80,454 117,800 117,800 12,405 12,751 324,364 330,551 32,464 34,8ll 1,957 2,016 1,570,205 1,601,100 106 Operations & Maintenance Expenses 107 Professional Services $ 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 78,286 80,635 108 OtherContractual Serv $ 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063 105 Elec-Util Charges $ 258,000 273,480 289,889 307,282 325,719 345,262 365,978 387,937 411,213 435,886 462,039 110 Gas,Water&SanitationUtl $ 9,000 9,Z70 9,548 9,835 10,130 10,433 10,746 11,069 11,401 11,743 12,095 111 Postage $ 100 103 106 109 113 116 119 123 127 130 134 112 InterfdSvcChgOtherFund $ 2,640 2,719 2,801 2,885 2,971 3,060 3,152 3,247 3,344 3,445 3,548 ii3 InterfdOtherServChgs $ 149,320 153,800 158,414 163,166 168,061 173,103 178,296 183,645 189,154 194,829 200,674 114 Interfd Admin Service Chg $ 259,440 267,223 275,240 283,497 292,002 300,762 309,785 319,078 328,651 338,510 348,666 115 Advertising $ 100 103 106 109 113 116 119 123 127 130 134 116 Printing & Binding $ 80 S2 85 87 90 93 96 98 101 104 108 117 Taxes $ 30 31 32 33 34 35 36 37 38 39 40 118 EquiptRental $ 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063 li5 Insurance $ 14,140 14,564 15,001 15,451 15,915 16,392 16,584 17,390 17,912 18,449 19,003 1zo OtherEquipSvc&Repair $ 6,500 6,695 6,896 7,103 7,316 7,535 7,761 7,994 8,234 8,481 8,735 121 Uniforms-Employee $ 5,510 5,675 5,846 6,021 6,202 6,388 6,579 6,777 6,980 7,189 7,405 122 Travel Expense-Emp $ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 1,957 2,016 1z3 Mileage Reimbursement $ 400 412 424 437 450 464 478 492 507 522 538 124 Meals-Employee $ 400 412 424 437 450 464 478 492 507 522 538 125 OtherServices OrCharges $ 600 61S 637 656 675 696 716 738 760 783 806 125 Office Supplies $ 3,000 3,090 3,183 3,275 3,377 3,478 3,582 3,690 3,500 3,914 4,032 1z7 Operating5upplies&Matls $ 173,000 178,190 183,536 189,042 194,713 200,554 206,571 212,768 219,151 225,726 232,498 128 Lab Chem Supplies $ 32,000 32,960 33,949 34,967 36,016 37,097 38,210 39,356 40,537 41,753 43,005 129 MedicalSupplies $ 100 103 106 109 113 116 119 123 127 130 134 130 $750-SOOOMach&Equip $ 5,300 5,459 5,623 5,791 5,965 6,144 6,328 6,518 6,714 6,915 7,123 131 Memberships/Subs/LicEmp $ 890 917 944 973 1,002 1,032 1,063 1,095 1,127 1,161 1,196 132 Officl Recognition-Emp $ 190 196 202 208 214 220 227 234 241 248 255 133 Training & Ref Employee $ 5,800 5,974 6,153 6,335 6,528 6,724 6,926 7,133 7,347 7,568 7,795 i3a Garage Services $ 85,800 88,374 91,025 93,756 96,569 99,466 102,450 105,523 108,689 111,950 115,308 135 Telephone Service Variable $ 2,510 2,585 2,663 2,743 2,825 2,910 2,997 3,OS7 3,180 3,275 3,373 136 RadioSvc-Fixed $ 3,220 3,317 3,416 3,519 3,624 3,733 3,545 3,960 4,079 4,201 4,327 137 Risk Mgmt Service $ 3,850 3,966 4,084 4,207 4,333 4,463 4,597 4,735 4,877 5,023 S,ll4 13a Info Technology Charge $ 35,840 36,915 38,023 39,163 40,338 41,548 42,795 44,079 45,401 46,763 48,166 139 Bldg & Maint DeptSvcFx $ 483,380 497,881 512,818 528,202 544,048 560,370 577,181 594,496 612,331 630,701 649,622 14o Garage Variable $ 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067 5,219 5,376 1a1 Bldg&Maint-Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 142 Employee Benefits-Fixed $ 2,750 2,833 2,917 3,005 3,095 3,188 3,284 3,352 3,484 3,585 3,696 143 ContribToGarageFund $ 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063 lai Total O&M Expenses $ 1,628,390 1,684,982 1,743,736 1,804,744 1,868,105 1,933,920 2,002,295 2,073,343 2,147,182 2,223,934 2,303,725 144 TOTAL01347WASTEWATERMAINTENANCE $ 2,596,426 2,976,162 3,OS7,707 3,203,215 3,292,429 3,386,482 3,482,265 3,583,677 3,657,215 3,794,139 3,904,829 BURTON & ASSOCIATES 28 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 01351 W PC PLANT OPERATIONS 145 Personal5ervices 1a6 Full Time Salaries & Wages $ 1,733,740 1,768,415 1,803,783 1,839,859 1,876,656 1,914,189 1,952,473 1,991,522 2,031,353 2,071,980 2,113,419 147 PartTimeSalaries&Wages $ 19,760 20,155 20,558 20,969 21,389 21,817 22,253 22,698 23,152 23,615 24,087 1aa Overtime S 180,000 183,600 187,272 191,017 194,838 198,735 202,709 206,763 210,899 215,117 219,419 145 Life Ins $2500 Empl & Pens $ 10 10 11 11 11 12 12 12 13 13 13 150 Samp Life Insurance $ 270 278 286 295 304 313 322 332 342 352 363 151 MajorMedical Ins-Emp $ 248,000 248,000 248,000 248,000 245,000 248,000 245,000 248,000 248,000 248,000 248,000 15z Social5ecurity-Employee $ 25,000 429,257 492,572 558,248 569,413 580,802 592,418 604,266 616,351 625,678 641,252 153 AdditionalOPEBAccrual S 35,102 35,864 38,543 41,449 42,518 47,374 49,501 56,525 61,115 65,544 70,295 154 Emp Pension Plan $ 459,300 519,009 586,480 662,723 748,877 846,230 956,240 1,080,552 1,221,023 1,379,756 1,559,125 155 WorkersCompensation $ 97,850 100,786 103,809 106,923 110,131 113,435 116,838 120,343 123,953 127,672 131,502 156 CWA Life Insurance $ 2,730 2,812 2,896 2,983 3,073 3,165 3,260 3,358 3,458 3,562 3,669 157 Total Personal Services $ 2,501,762 3,308,186 3,484,211 3,672,478 3,815,209 3,974,071 4,144,026 4,334,372 4,539,660 4,764,290 5,011,145 158 Operations & Maintenance Expenses 159 Professional Services $ 210,000 216,300 222,789 229,473 236,357 243,448 250,751 258,274 266,022 274,002 282,222 16o OtherContractualServ $ 707,500 728,725 750,587 773,104 796,297 820,156 844,792 870,136 896,240 923,127 950,821 151 Elec-Util Charges $ 2,320,000 2,459,200 2,606,752 2,763,157 2,928,947 3,104,683 3,290,964 3,488,422 3,697,725 3,919,591 4,154,767 162 Gas,Water&SanitationUtl $ 220,000 226,600 233,398 240,400 247,612 255,040 262,692 270,572 278,689 287,050 295,662 163 Postage $ 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 18,267 18,815 164 Interfd OtherServ Chgs $ 295,980 304,859 314,005 323,425 333,125 343,122 353,416 364,018 374,939 386,187 397,772 165 Interfd Admin Service Chg $ 546,180 562,565 579,442 596,826 614,730 633,172 652,167 671,733 691,SS4 712,641 734,020 166 Advertising $ S00 515 530 546 563 580 597 615 633 652 672 167 Freight $ 400 412 424 437 450 464 478 492 507 522 538 i68 Printing & Binding $ 300 309 318 328 338 348 358 369 380 391 403 169 Taxes $ 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 60,476 17o Equipt Rental S 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619 33,598 171 Insurance $ 245,030 252,381 259,952 267,751 275,783 284,057 292,579 301,356 310,397 319,709 329,300 172 OtherEquipSvc&Repair $ 23,000 23,690 24,401 25,133 25,887 26,663 27,463 28,287 29,136 30,010 30,910 173 BldgRepairMaintSvcs $ 3,000 3,090 3,183 3,278 3,377 3,475 3,582 3,690 3,800 3,914 4,032 174 Uniforms-Employee $ 11,600 11,948 12,306 12,676 13,056 13,448 13,851 14,267 14,695 15,135 15,589 vs Travel Expense-Emp $ 5,050 5,202 5,358 5,518 5,684 5,854 6,030 6,211 6,397 6,589 6,787 176 Mileage Reimbursement $ 2.600 2,678 2,758 2,841 2,926 3,014 3,105 3,198 3,294 3,392 3,494 ln Meals-Employee $ 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 5,063 v8 OtherServicesOrCharges $ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 1,957 2,016 179 Office Supplies $ 9,000 9,270 9,548 9,835 10,130 10,433 10,746 11,069 11,401 11,743 12,095 180 Operating5upplies&Matls $ 200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975 253,354 260,955 268,783 181 LabChemSupplies $ 1,300,000 1,339,000 1,379,170 1,420,545 1,463,161 1,507,056 1,552,268 1,598,836 1,646,801 1,696,205 1,747,091 i8z Medical Supplies $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 1a3 $750-SOOOMach&Equip $ 2,960 3,049 3,140 3,234 3,332 3,431 3,534 3,640 3,750 3,862 3,978 1aa Memberships/Subs/LicEmp $ 1,470 1,514 1,560 1,606 1,654 1,704 1,755 1,805 1,862 1,918 1,976 185 Officl Recognition-Emp $ 400 412 424 437 450 464 478 492 507 522 538 186 Training& Ref Employee $ 7,480 7,704 7,936 5,174 8,419 8,671 8,932 9,199 9,475 9,760 10,052 187 Garage Services $ 125,570 129,337 133,217 137,214 141,330 145,570 149,937 154,435 159,065 163,840 168,756 1as Telephone Service Variable $ 46,830 48,235 49,682 51,172 52,708 54,289 55,917 57,595 59,323 61,103 62,936 1a5 Messenger5ervice $ 750 773 796 820 844 869 896 922 950 979 1,008 190 RadioSvc-Fixed $ 8,920 9,188 9,463 9,747 10,040 10,341 10,651 10,970 11,300 11,639 11,988 191 TelephoneSvcfixed $ 5,670 5,840 6,015 6,196 6,382 6,573 6,770 6,973 7,183 7,398 7,620 192 PostalService $ 300 309 318 328 33S 34S 35S 369 380 391 403 153 RiskMgmtService $ 8,560 8,817 9,081 9,354 9,634 9,923 10,221 10,525 10,844 11,169 11,504 194 Info Technology Charge $ 85,480 88,044 90,686 93,406 96,208 99,095 102,068 105,130 105,284 111,532 114,878 195 Bldg & Maint Dept Svt Fx $ 271,970 280,129 288,533 297,189 306,105 315,288 324,746 334,489 344,523 354,859 365,505 i96 Custodial5ervice $ 22,580 23,257 23,955 24,674 25,414 26,176 26,962 27,771 28,604 29,462 30,346 arage aria e BURTON & ASSOCIATES � ' ' 29 " " ' ' ' City of learwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX 01351 W PC PIANT OPERATIONS 153 Operations & Maintenance Expenses Cont'd 194 Risk Mgmt Service $ 8,560 8,817 9,081 9,354 9,634 9,923 10,221 10,528 10,844 11,169 11,504 195 Info Technology Charge $ 85,480 88,044 90,686 93,406 96,208 99,095 102,068 105,130 108,284 111,532 114,878 155 Bldg & Maint Dept Svc Fx $ 271,970 280,129 288,533 297,189 306,105 315,288 324,746 334,489 344,523 354,859 365,505 157 Custodial5ervice $ 22,580 23,257 23,955 24,674 25,414 26,176 26,962 2�,771 28,604 29,462 30,346 19a Garage Variable $ 1,600 1,648 1,697 1,748 1,801 1,555 1,910 1,968 2,027 2,088 2,150 199 Bldg & Maint-Variable $ 750 773 796 820 844 869 896 922 950 979 1,008 2oD Employee Benefits-Fixed $ 6,110 6,293 6,482 6,677 6,577 7,083 7,296 7,515 7,740 7,972 8,211 zo1 >$S,OOOMachinery&Equip $ 11,140 11,474 11,818 12,173 12,538 12,914 13,302 13,701 14,112 14,535 14,971 202 InterestOther $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 203 Total O&M Expenses $ 6,802,180 7,075,845 7,361,897 7,660,956 7,973,680 5,300,758 5,642,922 9,000,938 9,375,619 9,767,819 10,175,442 zoa TOTAL01351WPCPLANTOPERATIONS $ 9,603,942 10,354,031 10,846,108 11,333,434 11,788,889 12,274,829 12,756,945 13,335,310 13,915,279 14,532,110 15,189,SS6 BURTON & ASSOCIATES 30 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 01352 WPC LABORATORY OPERATIONS 205 Personal5ervices zo6 Full Time Salaries & Wages $ 366,320 373,646 381,119 388,742 396,517 404,447 412,536 420,787 429,202 437,786 446,542 207 Life Ins $2500 Empl & Pens $ 50 52 53 55 56 SS 60 61 63 65 67 zoa 1% Life Insurance-Employee S 1,130 1,164 1,199 1,235 1,272 1,310 1,349 1,390 1,431 1,474 1,519 zo5 Samp Life Insurance $ 880 906 934 962 990 1,020 1,051 1,OS2 1,115 1,148 1,183 210 MajorMedicallns-Emp $ 49,600 49,600 49,600 49,600 49,600 49,600 49,600 49,600 49,600 49,600 49,600 z11 Social Security-Employee $ 8,810 9,074 9,347 9,627 9,916 10,213 10,520 10,835 11,160 11,495 11,840 21z Emp Pension Plan $ 73,020 89,687 102,917 116,639 118,972 121,351 123,779 126,254 128,780 131,355 133,983 z13 AdditionalOPEBAccrual $ 8,548 8,733 9,385 10,093 10,353 11,535 12,053 13,763 14,881 15,959 17,116 214 WorkersCompensation $ 3,180 3,275 3,374 3,475 3,579 3,686 3,797 3,911 4,028 4,149 4,274 215 Disabilitylnsurance $ 570 587 605 623 642 661 681 701 722 744 766 z15 Total Personal Services $ 512,108 536,725 558,531 581,049 591,896 603,582 615,425 628,385 640,983 653,777 666,889 217 Operations & Maintenance Expenses 218 Professional Services $ 20,000 20,600 21,218 21,855 22,510 23,185 23,SS1 24,597 25,335 26,095 26,878 219 Other ContractualServ $ 103,000 106,090 109,273 112,551 115,927 119,405 122,957 126,677 130,477 134,392 138,423 22o Gas,Water&SanitationUtl $ 30,000 30,900 31,827 32,782 33,765 34,775 35,822 36,896 38,003 39,143 40,317 zz1 Postage S 100 103 106 109 113 116 119 123 127 130 134 222 InterfdOtherServChgs $ 59,190 60,966 62,795 64,679 66,619 65,617 70,676 72,796 74,980 77,230 79,546 223 Interfd Admin Service Chg $ 109,240 112,517 115,893 119,369 122,951 126,639 130,438 134,351 138,382 142,533 146,809 224 Printing & Binding $ 100 103 106 109 113 116 119 123 127 130 134 225 Taxes $ 4,500 4,635 4,774 4,917 5,065 5,217 5,373 5,534 5,700 5,871 6,048 zz5 Equipt Rental S 3,350 3,451 3,554 3,661 3,770 3,884 4,000 4,120 4,244 4,371 4,502 227 Insurance $ 7,950 8,189 8,434 8,687 8,948 9,216 9,493 9,777 10,071 10,373 10,684 228 OtherEquip Svc & Repair $ 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 229 Uniforms-Employee $ 2,320 2,390 2,461 2,535 2,611 2,690 2,770 2,853 2,939 3,027 3,118 z3o Travel Expense-Emp S 3,900 4,011 4,138 4,262 4,389 4,521 4,657 4,797 4,940 S,OS9 5,241 z31 Mileage Reimbursement $ 700 721 743 765 788 811 836 861 887 913 941 232 Meals-Employee $ 100 103 106 109 113 116 119 123 127 130 134 z33 OtherServices OrCharges $ 200 206 212 219 225 232 239 246 253 261 269 234 Office Supplies $ 2,500 2,575 2,652 2,732 2,814 2,895 2,985 3,075 3,167 3,262 3,360 z35 Operating5upplies&Matls $ 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567 4,704 236 LabChemSupplies $ 100,000 103,000 106,090 109,273 112,551 115,9D 119,405 122,987 126,677 130,477 134,392 237 Memberships/Subs/LicEmp $ 400 412 424 437 450 464 478 492 507 522 538 z38 Officl Recognition-Emp $ 80 82 85 87 90 93 96 98 101 104 108 239 Training& Ref Employee $ 5,400 5,562 5,729 5,901 6,078 6,260 6,448 6,641 6,841 7,046 7,257 z4o Garage Services $ 2,880 2,966 3,055 3,147 3,241 3,339 3,439 3,542 3,645 3,758 3,870 241 Radio Svc-Fixed $ 360 371 382 393 405 417 430 443 456 470 484 242 RiskMgmtService $ 1,710 1,761 1,814 1,869 1,925 1,982 2,042 2,103 2,166 2,231 2,298 243 InfoTechnologyCharge $ 28,680 29,540 30,427 31,339 32,280 33,248 34,245 35,273 36,331 37,421 38,544 zaa Bldg & Maint Dept Svc Fx $ 43,500 45,114 46,467 47,861 49,297 50,776 52,299 53,868 55,485 57,149 58,864 245 Custodial5ervice $ 8,220 8,467 8,721 8,982 9,252 9,529 9,815 10,110 10,413 10,725 11,047 246 Garage Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 247 Bldg&Maint-Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 248 Employee Benefits-Fixed $ 1,220 1,257 1,294 1,333 1,373 1,414 1,457 1,500 1,545 1,592 1,640 za5 Total O&M Expenses $ 550,400 566,912 583,919 601,437 619,480 638,064 657,206 676,923 697,230 718,147 739,692 250 TOTAL01352WPCLABORATORYOPERATIONS $ 1,062,508 1,103,637 1,142,451 1,182,486 1, 241, 946 1, 27 2, 631 1, 305, 307 1, 3 38, 213 1, 371, 924 1, 406, 580 BURTON & ASSOCIATES 31 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows 01353 INDUSTRIAL PRETREATMENT 251 PersonalServices 252 FuII Time 5alaries & Wages z53 Overtime 254 Life Ins $2500 Empl & Pens 255 1% Life Insurance-Employee 256 Samp Life Insurance 257 MajorMedical Ins-Emp zss Social Security-Employee 259 Emp Pension Plan 26o AdditionalOPEBAccrual z51 Workers Compensation 262 CWA Life Insurance z63 TotalPersonal5ervices $ $ $ $ $ $ $ $ $ $ $ $ FY 2011 262,780 20,000 10 630 150 37,200 4,100 67,870 5,650 4,120 370 402,880 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 268,036 20,400 10 649 155 37, 200 4, 223 69, 225 5, 773 4,244 381 410,295 273, 396 20, 808 11 668 159 37, 200 4, 350 79,435 6, 204 4, 371 393 426,995 278, 864 21, 224 11 688 164 37, 200 4,480 90, 027 6, 672 4, 502 404 444,237 284,442 21, 649 11 709 169 37, 200 4,615 91, 827 6,844 4, 637 416 452,518 290,130 22,082 12 730 174 37,200 4,753 93,664 7, 626 4, 776 429 461,576 295,933 22, 523 12 752 179 37, 200 4,896 95,537 7,968 4,919 442 470,361 301,552 22,974 12 775 184 37,200 5,042 97,448 9,099 5,067 455 480,108 307,889 23, 433 13 798 190 37, 200 5,194 99, 397 9, 838 5, 219 469 489,639 314,046 23, 902 13 S22 196 37, 200 5, 350 101, 384 10, 551 5, 376 483 499,323 320, 327 24, 380 13 847 202 37, 200 5,510 103,412 11, 316 5,537 497 509,241 264 Operations & Maintenance Expenses 265 Professional5ervices $ 30,000 30,900 31,527 32,782 33,765 34,775 35,822 36,896 35,003 39,143 40,317 266 OtherContractual5erv $ 33,500 34,505 35,540 36,606 37,705 38,836 40,001 41,201 42,437 43,710 45,021 z67 Postage $ 300 309 318 328 338 348 358 369 380 391 403 268 InterfdOtherServChgs $ 44,400 45,732 47,104 48,517 49,973 51,472 53,016 54,606 56,245 57,932 59,670 269 Interfd Admin Service Chg $ 81,930 54,388 86,920 89,527 92,213 94,979 97,829 100,764 103,786 106,900 110,107 270 Advertising $ 650 670 690 710 732 754 776 799 S23 848 874 z71 OtherPromotionActivity $ 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 SQ671 52,191 53,757 272 Printing & 8inding $ 300 309 318 328 338 348 358 369 380 391 403 273 Equipt Rental $ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 1,957 2,016 27a Insurance $ 960 989 1,018 1,049 1,080 1,113 1,146 1,151 1,216 1,253 1,290 z75 OtherEquipSvc&Repair $ 1,700 1,751 1,804 1,558 1,913 1,971 2,030 2,091 2,154 2,218 2,285 276 Uniforms-Employee $ 1,740 1,792 1,846 1,901 1,958 2,017 2,078 2,140 2,204 2,270 2,335 277 Travel Expense-Emp $ 3,760 3,873 3,989 4,109 4,232 4,359 4,490 4,624 4,763 4,906 5,053 z�a Mileage Reimbursement $ 500 515 530 546 563 580 597 615 633 652 672 z75 Meals-Employee $ 120 124 127 131 135 139 143 14S 152 157 161 28o OtherServices OrCharges $ 200 206 212 219 225 232 239 246 253 261 269 z81 Office Supplies $ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,545 1,900 1,957 2,016 282 OperatingSupplies & Matls $ 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 15,657 16,127 283 LabChemSupplies $ 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 284 Memberships/Subs/LicEmp $ 7S0 803 S28 852 878 904 931 959 988 1,018 1,048 285 Offid RecognitiomEmp $ 60 62 64 66 68 70 72 74 76 78 81 za5 Training & Ref Employee $ 2,860 2,946 3,034 3,125 3,219 3,316 3,415 3,517 3,623 3,732 3,844 287 6arageServices $ 14,020 14,441 14,874 15,320 15,780 16,253 16,741 ll,243 17,760 iS,293 18,842 288 Telephone Service Variable $ 1,260 1,298 1,337 1,377 1,418 1,461 1,505 1,550 1,596 1,644 1,693 289 RadioSvc-Fixed $ 1,750 1,833 1,888 1,945 2,003 2,064 2,125 2,159 2,255 2,322 2,392 z5o PostalService $ 400 412 424 437 450 464 478 492 507 522 538 291 Risk Mgmt Service $ 1,280 1,318 1,358 1,399 1,441 1,484 1,525 1,574 1,621 1,670 1,720 292 InfoTechnologyCharge $ 21,820 22,475 23,149 23,543 24,559 25,295 26,054 26,836 27,641 28,470 29,324 z93 Garage Variable $ 1,800 1,554 1,910 1,967 2,026 2,087 2,149 2,214 2,280 2,349 2,419 z5a Bldg&Maint-Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 295 Employee Benefits-Fixed $ 920 948 976 1,005 1,035 1,067 1,099 1,131 1,165 1,200 1,236 296 >$5,000 Machinery & Equip $ 10,500 10,515 11,139 11,474 11,818 12,172 12,535 12,914 13,301 13,700 14,111 257 Total O&M Expenses $ 315,540 325,W6 334,756 344,799 355,143 365,797 376,771 388,074 399,717 411,708 424,059 298 TOTAL013531NDUSTRIALPRETREATMENT $ 718,420 735,301 761,751 789,036 807,662 827,373 847,133 868,183 589,355 911,031 933,301 BURTON & ASSOCIATES 32 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 02051 WATER DISTRIBUTION 299 Personal5ervices 30o Full Time Salaries & Wages $ 1,392,790 1,420,646 1,449,059 1,478,040 1,507,601 1,537,753 1,565,508 1,599,578 1,631,575 1,664,513 1,697,803 301 Overtime $ 60,000 61,200 62,424 63,672 64,946 66,245 67,570 68,921 70,300 71,706 73,140 3oz Life Ins $2500 Empl & Pens S 10 10 11 11 11 12 12 12 13 13 13 303 1% Lifelnsurance-Employee $ 620 639 658 677 698 719 740 763 7S5 809 833 304 Samp Life Insurance $ 310 319 329 339 349 359 370 381 393 404 417 305 MajorMedical Ins-Emp $ 217,000 217,000 217,000 217,000 217,000 217,000 217,000 217,000 217,000 217,000 217,000 306 Social5ecurity-Employee $ 21,060 21,692 22,343 23,013 23,703 24,414 25,147 25,901 26,678 27,479 28,303 307 Emp Pension Plan $ 337,830 355,643 408,100 462,514 471,764 481,199 490,823 500,640 510,653 520,566 531,283 308 AdditionalOPEBAccrual $ 28,578 29,198 31,379 33,745 34,616 38,569 40,301 46,020 49,757 53,363 57,231 309 WorkersCompensation $ 45,630 46,999 48,409 49,861 51,357 52,898 54,485 56,119 57,803 59,537 61,323 310 Disabilitylnsurance $ 450 464 477 492 506 522 537 553 570 587 605 311 CWA Life Insurance $ 2,250 2,318 2,387 2,459 2,532 2,608 2,687 2,767 2,850 2,936 3,024 312 Total Personal Services $ 2,106,525 2,156,127 2,242,575 2,331,823 2,375,084 2,422,298 2,468,179 2,518,956 2,568,676 2,619,212 2,670,974 313 Operations & Maintenance Expenses 314 Professional5ervices 315 OtherContractualServ 316 Telephone-UtilChgs 3v Eleo-Util Charges 318 Postage 319 Interfd Svc Chg-Other Fund 3zo Interfd OtherServ Chgs 321 Interfd Admin Service Chg 322 Advertising 323 Other Promotion Activity 3z4 Printing&Binding 325 Dump Fee 326 Taxes 3z7 Equipt Rental 32s Insurance 3z5 Other Equip Svc & Repair 330 Uniforms-Employee 331 Travel Expense-Emp 33z Mileage Reimbursement 333 Meals-Employee 33a OtherServices OrCharges 335 Office Supplies 335 OperatingSupplies&Matls 337 Medical Supplies 33s $750-SOOOMach&Equip 339 Memberships/Subs/LicEmp 340 Offid Recognition-Emp 341 Training & Ref Employee 3az Garage Services 3a3 Telephone Service Variable 344 Messenger5ervice 345 Radio Svc-Fixed 346 Telephone Svc Fixed $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ � $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 81,000 4,800 5,000 700 300 88,450 367,100 477,910 300 500 6,100 200 300 S00 164,910 6,000 10,150 15, 350 1, 200 1,000 1, 500 5,000 360,000 1,000 2, 200 2,490 350 25,310 301, 340 4,400 740 15,470 4,080 83,430 4,944 5,150 742 309 91,104 378,113 492,247 309 515 6,283 206 309 515 169,857 6,180 10,455 15,811 1, 236 1,030 1,545 5,150 370,800 1,030 2, 266 2,565 361 26,069 310, 380 4,532 762 15,934 4,202 85,933 5,092 5,305 787 318 93,837 389,456 507,015 318 530 6,471 212 318 530 174,953 6,365 10, 768 16, 285 1,273 1,061 1,591 5,305 381,924 1,061 2,334 2,642 371 26,851 319, 692 4, 668 785 16,412 4,328 88,511 5,245 5,464 834 328 96,652 401,140 522,225 328 546 6,666 219 328 546 180, 202 6,556 11,091 16,773 1,311 1,093 1,639 5,464 393,382 1,093 2,404 2,721 382 27,657 329,282 4,808 809 16,904 4,455 91,166 5,402 5,628 S84 338 99, 551 413,174 537, 892 338 563 6, 866 225 338 563 185,608 6,753 11,424 17,277 1,351 1,126 1,688 5, 628 405,183 1,126 2,476 2,803 394 25,487 339,161 4,952 833 17,412 4,592 93, 901 5, 565 5, 796 937 34S 102, 538 425, 570 554, 029 348 580 7, 072 232 348 580 191,176 6, 956 11, 767 17, 795 1, 391 1,159 1, 739 5, 796 417, 339 1,159 2, 550 2, 887 406 29, 341 349,336 5,101 858 17, 934 4, 730 96, 718 5, 731 5, 970 993 358 105,614 438, 337 570, 650 358 597 7, 284 239 358 597 196, 911 7,164 12,120 18, 329 1,433 1,194 1, 791 5, 970 429, 859 1,194 2, 627 2, 973 418 30, 221 359, 816 5, 254 884 18,472 4, 872 99, 620 5, 903 6,149 1, 053 369 105, 782 451,487 SS7,769 369 615 7, 502 246 369 615 202, 818 7, 379 12,483 18, 879 1,476 1, 230 1, 845 6,149 442, 755 1, 230 2, 706 3, 062 430 31,128 370, 610 5,411 910 19, 026 5, O18 102, 608 6, OSO 6, 334 1,116 380 112,046 465, 031 605,402 380 633 7, 727 253 380 633 208, 903 7, 601 12, 858 19,445 1, 520 1, 267 1, 900 6, 334 456, 037 1, 267 2,757 3,154 443 32,062 381, 728 5, 574 937 19, 597 5,168 105, 687 6, 263 6, 524 1,183 391 115,407 478, 982 623, 564 391 652 7, 959 261 391 652 215,170 7, 829 13.243 20,028 1, 566 1, 305 1, 957 6.524 469, 718 1, 305 2,571 3, 249 457 33,024 393,180 5, 741 966 20,185 5, 323 108,857 6,451 6,720 1, 254 403 118,869 493,352 642,271 403 672 8,198 269 403 672 221,625 8,063 13,641 20,629 1,613 1,344 2,016 6,720 483,810 1, 344 2,957 3, 346 470 34,015 404,976 5,913 994 20,790 5,483 BURTON & ASSOCIATES 33 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX 02051 WATER DISTRIBUTION Operations & Maintenance Expenses Cont'd 347 Postal5ervice $ 500 515 530 546 563 580 597 615 633 652 672 348 RiskMgmtService $ 7,490 7,715 7,946 8,185 5,430 8,683 8,943 9,212 9,488 9,773 10,066 349 InfoTechnologyCharge S 73,670 75,880 78,157 50,501 82,916 85,404 87,966 90,605 93,323 96,123 99,006 35o Garage Variable $ 18,000 18,540 19,096 19,669 20,259 20,567 21,493 22,138 22,802 23,486 24,190 351 Bldg&Maint-Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 352 Administrative Charge $ 844,820 870,165 896,270 923,158 950,852 979,378 1,008,759 1,039,022 1,070,193 1,102,298 1,135,367 353 Employee Benefits-Fixed $ 5,340 5,500 5,665 5,835 6,010 6,191 6,376 6,568 6,765 6,967 7,177 35a Total O&M Expenses $ 2,906,470 2,993,685 3,083,518 3,176,047 3,271,353 3,369,521 3,470,634 3,574,783 3,652,058 3,792,553 3,906,365 355 TOTAL02051WATERDISTRIBUTION $ 5,012,998 5,149,812 5,326,093 5,507,870 5,646,437 5,791,SiS 5,935,814 6,093,739 6,250,735 6,411,765 6,577,340 BURTON & ASSOCIATES 34 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 02053 WATER SUPPLY 356 Personal5ervices 35� Full Time Salaries & Wages $ 446,730 455,665 464,778 474,073 483,555 493,226 503,091 513,152 523,415 533,884 544,561 35s Overtime $ 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 359 Life Ins $2500 Empl & Pens S 10 10 11 11 11 12 12 12 13 13 13 35o Samp Life Insurance $ 150 155 159 164 169 174 179 1S4 190 196 202 361 MajorMedicallns-Emp $ 68,200 68,200 68,200 68,200 68,200 68,200 68,200 68,200 68,200 68,200 68,200 35z Social Security-Employee $ 5,990 6,170 6,355 6,545 6,742 6,944 7,152 7,367 7,588 7,516 8,050 363 Emp Pension Plan $ 112,020 114,256 131,108 148,589 151,561 154,592 157,684 160,838 164,055 167,336 170,682 354 AdditionalOPEBAccrual $ 9,449 9,654 10,375 11,157 11,445 12,752 13,325 15,216 16,452 17,644 18,923 365 WorkersCompensation $ 5,360 5,521 5,686 5,857 6,033 6,214 6,400 6,592 6,790 6,994 7,203 366 CWA Life Insurance $ 690 711 732 754 777 800 824 849 874 900 927 367 Total Personal Services $ 668,599 680,740 708,212 736,575 750,141 764,995 779,390 795,384 811,030 826,884 843,143 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 aoo 401 402 403 Operations & Maintenance Expenses Professional Services Other Contractual Serv Elec-Util Charges Gas,Water & Sanitation Utl Postage Interfd Svc Chg-Other Fund Interfd OtherServ Chgs Interfd Admin Service Chg Advertising Printing&Binding Dump Fee Taxes Equipt Rental Insurance Ofc Equip Svc & Repair Other Equip Svc & Repair Bldg Repair Maint Svcs Uniforms-Employee Travel Expense-Emp Mileage Reimbursement Meals-Employee Other Services Or Charges Office Supplies OperatingSupplies & Matls Lab Chem Supplies Medical Supplies $750-5000 Mach & Equip Memberships/Subs/Lic Emp Offid Recognition-Emp Training & Ref Employee Garage Services Telephone Service Variable Radio Svo-Fixed Telephone Svc Fixed Risk Mgmt Service � $ $ 5 $ � $ $ S � $ $ � s � S S � s $ $ S � $ S $ $ � � $ $ s $ $ S 76,000 69, 250 700,000 9,000 800 7,920 86,440 150, 200 300 1,000 1,000 8,000 400 47,030 100 4,000 3,000 3,190 5,100 200 350 800 2,000 150,000 350,000 S00 1, 600 1,050 110 8, 740 55,660 21,940 2, 510 380 2, 350 78, 280 71, 328 742,000 9, 270 824 8,158 89,033 154,706 309 1,030 1,030 8, 240 412 48,441 103 4,120 3,090 3,286 5,253 206 361 824 2,060 154,500 360,500 515 1, 648 1,082 113 9,002 57,330 22,598 2,585 391 2,421 80, 628 73,467 786,520 9,548 849 8,402 91,704 159,347 318 1,061 1,061 8,487 424 49,894 106 4,244 3,183 3,384 5,411 212 371 849 2,122 159,135 371,315 530 1, 697 1,114 117 9,272 59,050 23,276 2,663 403 2,493 83,047 75,671 833,711 9,835 874 8,654 94,455 164,128 328 1,093 1,093 8,742 437 51,391 109 4,371 3, 278 3,486 5,573 219 382 874 2,185 163,909 382,454 546 1,748 1,147 120 9,550 60,821 23,974 2,743 415 2,565 85,539 77, 941 883,734 10,130 900 8,914 97, 289 169,051 338 1,126 1,126 9, 004 450 52,933 113 4,502 3, 377 3,590 5, 740 225 394 900 2,251 168, 826 393, 928 563 1,801 1,182 124 9,837 62, 646 24,694 2,825 428 2,645 58,105 S0,2S0 936, 758 10,433 927 9,181 100, 208 174,123 348 1,159 1,159 9, 274 464 54, 521 116 4, 637 3,478 3, 698 5, 912 232 406 927 2, 319 173,891 405,746 580 1, 855 1, 217 128 10,132 64, 525 25,434 2, 910 441 2, 724 90, 748 52,688 992, 963 10, 746 955 9,457 103,214 179, 347 358 1,194 1,194 9, 552 478 56,156 119 4, 776 3, 582 3, 809 6, 090 239 418 955 2,385 179,108 417, 918 597 1, 910 1, 254 131 10,436 66,461 26,198 2, 997 454 2,506 93,470 85,169 1, 052, 541 11, 069 9S4 9, 741 106,310 184, 727 369 1, 230 1, 230 9,539 492 57, 841 123 4, 919 3, 690 3, 923 6, 272 246 430 984 2,460 184,481 430,456 615 1, 968 1, 291 135 10, 749 65,455 26, 983 3, 087 467 2, 890 96, 275 87, 724 1,115, 694 11,401 1, 013 10,033 109, 500 190, 269 3S0 1, 267 1, 267 10,134 507 59, 576 127 S, 067 3, 800 4, 041 6,461 253 443 1, 013 2, 534 190,016 443, 370 633 2, 027 1, 330 139 11,072 70, 508 27, 793 3,180 481 2, 977 99,163 90, 356 1,182, 635 11, 743 1,044 10, 334 112, 785 195, 977 391 1, 305 1, 305 10,438 522 61, 363 130 5, 219 3, 914 4,162 6, 654 261 457 1,044 2, 610 195,716 456, 671 652 2,088 1, 370 144 11,404 72, 624 28, 627 3, 275 496 3,066 102,135 93,066 1,253,593 12,095 1,075 10,644 116,165 201,856 403 1,344 1,344 10, 751 538 63, 204 134 5,376 4,032 4,287 6,854 269 470 1,075 2,688 201,587 470,371 672 2,150 1,411 14S 11,746 74,802 29,486 3,373 511 3,155 BURTON & ASSOCIATES 35 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX 02053 WATER SUPPLY Operations & Maintenance Expenses Cont'd 404 Info Technology Charge $ 67,580 69,607 71,696 73,846 76,062 78,344 80,694 83,115 85,608 88,177 90,822 405 Bldg & Maint Dept Svc Fx $ 123,270 126,968 130,777 134,700 138,741 142,904 147,191 151,607 156,155 160,839 165,665 406 Custodial Service S 4,400 4,532 4,668 4,808 4,952 5,101 5,254 5,411 5,574 5,741 5,913 ao7 Garage Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 408 Bldg&Maint-Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 409 Employee Benefits-Fixed $ 1,680 1,730 1,752 1,836 1,891 1,948 2,006 2,066 2,128 2,192 2,258 410 >$5,000 Machinery & Equip $ 15,000 15,450 15,914 16,391 16,583 17,389 17,911 18,448 19,002 19,572 20,159 a10 Total O&M Expenses $ 1,984,850 2,065,396 2,149,617 2,237,701 2,329,844 2,426,251 2,527,141 2,632,745 2,743,303 2,859,073 2,980,324 411 TOTAL02053WATERSUPPIY $ 2,653,449 2,746,136 2,857,829 2,974,277 3,079,985 3,191,246 3,306,532 3,428,129 3,554,313 3,685,957 3,823,467 BURTON & ASSOCIATES 36 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 6-Projection of Cash Outflows FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 02054 RECLAIMED WATER 412 Personal5ervices a13 Full Time Salaries & Wages $ 668,470 681,839 695,476 709,386 723,573 738,045 752,806 767,862 783,219 798,884 814,861 414 Overtime $ 21,630 22,063 22,504 22,954 23,413 23,851 24,359 24,546 25,343 25,850 26,367 a15 Life Ins $2500 Empl & Pens $ 10 10 11 11 11 12 12 12 13 13 13 415 Samp Life Insurance $ 150 155 159 164 169 174 179 1S4 190 196 202 417 MajorMedicallns-Emp $ 99,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 a18 Social Security-Employee $ 7,620 7,849 8,084 8,327 8,576 8,834 9,099 9,372 9,653 9,942 10,241 a19 Emp Pension Plan $ 165,620 168,936 193,855 219,702 224,096 228,578 233,149 237,812 242,569 247,420 252,368 azo AdditionalOPEBAccrual S 12,196 12,461 13,392 14,402 14,774 16,461 ll,200 19,641 21,236 22,775 24,426 421 WorkersCompensation $ 10,380 10,691 11,012 11,343 11,683 12,033 12,394 12,766 13,149 13,544 13,950 422 CWA Life Insurance $ 1,080 1,112 1,146 1,180 1,216 1,252 1,290 1,328 1,368 1,409 1,451 az3 Total Personal Services $ 956,356 1,004,317 1,044,838 1,086,668 1,106,711 1,128,469 1,149,688 1,173,024 1,195,939 1,219,233 1,243,080 424 Operations & Maintenance Expenses 425 Professional Services $ 38,000 39,140 40,314 41,524 42,769 44,052 45,374 46,735 45,137 49,581 51,069 4z6 OtherContractualServ $ 150 155 159 164 169 174 179 184 190 196 202 427 Postage $ 150 155 159 164 169 174 179 184 190 196 202 nza Interfd OtherServ Chgs S 125,740 129,512 133,398 137,399 141,521 145,767 150,140 154,644 159,284 164,062 168,984 425 Interfd Admin Service Chg $ 218,470 225,024 231,775 238,728 245,890 253,267 260,865 265,691 276,751 285,054 293,605 430 OtherPromotionActivity $ 65,000 66,950 68,959 71,027 73,158 75,353 77,613 79,942 82,340 54,810 87,355 431 Printing&Binding $ 6,400 6,592 6,790 6,993 7,203 7,419 7,642 7,871 8,107 8,351 8,601 432 Insurance $ 13,180 13,575 13,983 14,402 14,834 15,279 15,738 16,210 16,696 17,197 17,713 a33 Uniforms-Employee $ 4,640 4,779 4,923 5,070 5,222 5,379 5,540 5,707 5,878 6,054 6,236 434 Travel Expense-Emp $ 1,850 1,906 1,963 2,022 2,082 2,145 2,209 2,275 2,344 2,414 2,486 a35 Mileage Reimbursement $ 500 515 530 546 563 SSO 597 615 633 652 672 436 Meals-Employee $ 320 330 339 350 360 371 3S2 394 405 418 430 a37 OtherServices OrCharges $ 300 309 318 328 338 348 358 369 3S0 391 403 43s Office Supplies $ 700 721 743 765 788 811 836 861 8S7 913 941 439 OperatingSupplies&Matls $ 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 39,143 40,317 440 $750-SOOOMach&Equip $ 2,200 2,266 2,334 2,404 2,476 2,550 2,627 2,706 2,787 2,571 2,957 441 Memberships/Subs/LicEmp $ 280 288 297 306 315 325 334 344 355 365 376 aaz Officl Recognition-Emp $ 160 165 170 175 180 185 191 197 203 209 215 443 Training&RefEmployee $ 4,600 4,738 4,880 5,027 5,177 5,333 5,493 5,657 5,827 6,002 6,182 444 Garage Services $ 75,920 78,198 80,544 82,960 85,449 88,012 90,652 93,372 96,173 99,058 102,030 445 Telephone Service Variable $ 2,510 2,585 2,663 2,743 2,825 2,910 2,997 3,087 3,180 3,275 3,373 446 Radio Svc-Fixed $ 3,220 3,317 3,416 3,519 3,624 3,733 3,845 3,960 4,079 4,201 4,327 447 Telephone SvcFixed $ 280 288 297 306 315 325 334 344 355 365 376 448 RiskMgmtService $ 3,210 3,306 3,405 3,508 3,613 3,721 3,833 3,948 4,066 4,188 4,314 4ae InfoTechnologyCharge $ 28,990 29,860 30,755 31,678 32,629 33,607 34,616 35,654 36,724 37,825 38,960 45o Garage Variable $ 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 a51 Administretive Charge $ 211,210 217,546 224,073 230,795 237,719 244,850 252,196 259,762 267,555 275,581 283,849 452 Employee Benefits-Fixed $ 2,290 2,359 2,429 2,502 2,577 2,655 2,734 2,516 2,901 2,988 3,078 453 Total O&M Expenses $ 841,270 866,508 892,503 919,278 946,857 975,263 1,004,520 1,034,656 1,065,6% 1,097,667 1,130,597 454 TOTAL02054RECLAIMEDWATER $ 1,527,626 1,S70,S25 1,937,342 2,005,946 2,053,568 2,103,732 2,154,208 2,207,680 2,261,635 2,316,899 2,373,676 BURTON & ASSOCIATES 37 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 6-Projection of Cash Outflows APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 SIEMENS OPERATIONAL SAVINGS 454 Operational5avings $ - - (210,647) (375,135) (522,335) (318,615) (328,174) (338,019) (345,159) (369,362) (380,443) 455 TOTALSIEMENSOPERATIONALSAVINGS $ - - (210,647) (375,138) (522,335) (318,615) (328,174) (338,019) (348,159) (369,362) (380,443) PURCHASED WATERCO5T5 455 Inv Purchase-Resale $ 6,561,718 5,871,092 4,639,441 3,990,801 4,040,495 - - - - - - 457 TOTALPURCHASEDWATERCO5T5 $ 6,561,718 5,871,092 4,639,441 3,990,801 4,040,495 - - - - - - CAPITAL FINANCING COSTS asa Series 2009A- Principal & Interest �S 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 � 3,535,219 ' 3,944,719 � 3,943,219 459 Series20096-Principal&Interest �$ 5,320,875 � 5,351,375 � 5,347,000 � 5,323,625 � 5,276,875 � 5,275,750 � 5,273,625 � 5,274,875 � 5,275,750 � - - 460 Series2006-Principal&Interest �$ 1,184,776 � 1,184,776 � 1,184,776 r 1,184,776 � 1,184,776 � 1,184,776 � 1,184,776 � 1,184,776 � 1,184,776 � 2,564,814 � 2,562,695 461 Series2003-Principal&Interest $ 263,575 252,900 271,408 269,120 261,530 263,540 264,900 265,400 265,200 - - a52 Series2002-Principal&Interest $ 3,672,851 3,671,651 3,653,�51 3,663,149 3,677,896 3,7D,553 3,731,919 3,730,916 3,690,376 3,695,035 3,698,693 453 New Debt Projected by FAMS-XL $ - 182,337 182,337 2,926,481 2,926,481 5,233,629 5,720,010 5,293,593 5,836,143 10,809,189 11,225,137 464 TOTALCAPITALFINANCINGCOSTS $ 13,977,296 14,178,259 14,174,491 16,902,370 16,862,777 19,220,466 19,710,449 22,284,779 22,790,464 21,013,756 21,429,743 TRANSFERS OUT a55 R&RTransfer 466 WastewaterCollection $ 610,000 671,874 695,164 721,933 752,004 783,765 816,743 851,217 856,765 927,937 970,621 467 WPCPIantOperations $ 1,307,000 1,439,572 1,489,473 1,546,830 1,611,261 1,679,313 1,749,973 1,823,837 1,900,003 1,988,218 2,079,675 468 WaterDistribution $ 760,600 837,749 866,789 900,167 937,663 977,265 1,018,355 1,061,370 1,105,694 1,157,030 1,210,253 469 PILOT 47o Interfund Transfer- 1345 $ 107,020 117,259 121,323 125,995 131,243 136,786 142,542 148,SSS 154,762 161,948 169,397 471 Interfund Transfer-1346 $ 445,910 488,570 505,506 524,972 546,839 569,935 593,916 618,984 644,834 674,773 705,812 a�2 Interfund Transfer- 1347 $ 338,890 371,312 384,183 398,977 415,596 433,148 451,374 470,426 490,071 512,825 536,415 473 InterfundTransfer-1351 $ 713,460 781,717 808,814 839,960 874,947 911,901 950,271 990,350 1,031,740 1,079,643 1,129,306 a7a Interfund Transfer- 1352 S 142,690 156,341 161,761 167,990 174,987 182,378 190,051 198,073 206,345 215,926 225,858 475 Interfund Transfer- 1353 $ 107,020 117,259 121,323 125,995 131,243 136,786 142,542 148,558 154,762 161,948 169,397 476 Interfund Transfer-2051 $ 624,280 684,005 707,715 734,968 765,582 797,916 831,490 866,586 902,776 944,691 988,147 477 Interfund Transfer- 2053 $ 196,200 214,970 222,422 230,987 240,609 250,771 261,322 272,353 283,726 296,599 310,557 478 InterfundTransfer-2054 $ 285,380 312,682 323,521 335,979 349,974 364,755 380,103 396,147 412,690 431,851 451,716 n75 TOTALTRANSFERSOUT $ 5,638,450 6,193,309 6,407,995 6,654,753 6,931,949 7,224,719 7,528,712 7,846,491 8,174,170 8,553,689 5,947,155 LEASE PURCHASE EXPENSES 480 01347 WASTEWATER MAINTENANCE aa1 Principal-Leased Equipment $ 13,860 - - - - - - - - - - 4sz Interest-Leased Equipt $ 1,030 - - - - - - - - - - 483 01352WPCLABORATORYOPERATIONS 4a4 Principal-Leased Equipment $ 10,520 - - - - - - - - - - 4a5 Interest-Leased Equipt $ 660 - - - - - - - - - - aa6 02051 WATER DISTRIBUTION 487 Principal-Leased Equipment $ 19,220 - - - - - - - - - - 488 Interest-Leased Equipt $ 1,450 - - - - - - - - - - 489 02053 WATER SUPPLY aso Principal-Leased Equipment $ 1,870 - - - - - - - - - - a51 Interest-Leased Equipt S 310 - - - - - - - - - - 492 02054 RECLAIMED WATER 493 Principal-Leased Equipment $ 21,120 - - - - - - - - - - 494 Interest-Leased Equipt $ 2,080 - - - - - - - - - - a55 Future Lease Purchase Exp. (See Schedule 7) $ - - - - - - - - - - - 496 TOTALLEASEPURCHASEEXPENSES $ 72,120 - - - - - - - - - - a9� TOTAL EXPENSES $ 54,398,899 55,736,885 55,656,964 59,018,481 60,162,384 60,039,059 61,921,569 65,971,569 68,005,250 67,853,081 69,979,434 BURTON & ASSOCIATES 38 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 7- Additional Incremental 0&M APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 INCREMENTAL O&M EXPENDITURES 1 ReclaimedWaterDistribution $ - 228,070 245,610 264,740 285,620 308,410 333,300 353,298 374,496 396,965 420,783 2 Water Pick up Trucks (2) Reclaimed (2), (6) $ - 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 3 Water Pick up Trucks (2) Reclaimed (2), (6) - L/P $ - 14,960 14,960 14,950 11,490 - - - - - - 4 Reverse Osmosis Plant Expansion - Reservoir #1(1), (4), (8) $ - 468,970 483,040 497,530 512,450 527,830 543,660 559,970 576,769 594,072 611,894 5 Reverse Osmosis Plant @ Reservoir#2 (1), (3), (4), (8) $ - - - - 3,511,070 3,616,400 3,724,900 3,836,647 3,951,746 4,070,298 4,192,407 6 RO Pick-up Trucks Three (2), (3), (6) $ - 47,560 48,920 55,120 56,560 58,040 59,560 61,347 63,187 65,083 67,035 7 RO Pick-up Trucks Three (2), (3), (6) - L/P $ - 4,380 4,380 12,070 12,070 7,690 7,690 7,690 - - - a Groundwater Replenishment facility (1�, (3), (4), (8) $ - - - - 1,684,900 1,761,370 1,841,430 1,951,916 2,069,031 2,193,173 2,324,763 9 ArsenicTreatmentWTP#3 $ - - - 200,000 206,000 212,180 218,550 225,107 231,860 238,816 245,980 10 WWTP UV Disinfection (4) $ - - 386,180 404,750 424,220 914,107 1,197,898 1,269,772 1,345,958 1,426,716 1,512,318 11 Incremental Sewer Expenses forSSE $ - 63,866 84,522 100,058 129,027 150,242 175,196 186,880 330,401 455,084 513,066 12 TOTAL INCREMENTAL O&M EXPENDITURES $ -$ 832,606 $1,272,413 $1,554,017 $ 6,838,207 $ 7,561,068 $ 8,106,953 $ 8,457,426 $ 8,948,248 $ 9,445,006 $ 9,893,048 BURTON & ASSOCIATES 39 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 8- FAMS-XL O Control Panel FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX CITY OF CLEARWATER, FL I Check 3 - SAVE CALC FY 2011 FY 2012 FV 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Cumulative Change Override ► 4.50% 4.50% 4.50%a 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% FY 2016 FY 2021 Last Plan � 7.00% 6.00% 6.00% 4.00� 4.00% 4.00% �� 4.00% 4.00% 4.00% 4.00% 0.00% � 26.4� � 53.8% � e �e� e� a• o� s� s� s° e° e� e• e� last Plan 7.00% 6.00% 6.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 0.00% 26.4% 53.8% 9 10' /' 1' i' 1' 1' 1' 1' 1° 0' 1' Last Plan 7.00% 6.00% 6.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 0.00°� 26.4% 53.8% Rate Covenant 1.50 1.86 1.89 2.00 1.83 1.60 1.68 1.69 1.59 1.62 1.88 1.92 aaor 5.5% Last Plan 1.79 1.98 1.95 2.17 1.97 1.87 1.88 1.82 1.84 2.22 o&n� Fv11 ► 100% SRF Coverage 1.15 elasticity 0.30 IP Execution Percentage ► 70% 157% 130% 152% 100% 100% 100% 100% 100% 100% 100% rinellas co Plan 2 Wdtff $21.92 22.91 23.94 25.01 26.14 27.32 28.55 29.83 31.17 32.58 34.04 DSSCH MODEL Sewer $28.64 29.93 31.28 32.68 34.15 35.69 37.30 38.98 40.73 42.56 44.48 NNC NO Average Bill $50.56 52.84 55.21 57.70 60.29 63.01 65.84 68.81 71.90 75.14 78.52 alt aP YES 5ewer Exp option Last Plan $50.56 53.59 56.81 59.08 61.44 63.90 66.46 69.11 71.88 74.75 0.00 Reserve Target 7- 20 Year Reclaimed $35.08 36.66 38.31 40.03 41.83 43.72 45.68 47.74 49.89 52.13 54.48 3.00 MOS. O&M Capital Projects ■ current Plan �ast Plan Long-Term Borrowing ■ current Plan �ast Plan Interim Financing r Current Plan �ast Plan 80.0 50.0 80.0 60.0 60A � ? 40A ° 40.0 20.0 � � OA '' _C' _' ' ' _' ' ' z0.0 11 12 13 14 15 16 17 18 19 20 21 Unrestritted Reserve5 � Current Plan 40.0 � _ ' -_� _ Last Plan �Target Revenue Vs. Expenses 30.0 c ° 20.0 � 10.0 0.0 � � _ $100 0 � $50 $0 60.0 0 40.0 � 20.0 0.0 ��i �� , �, � -Cash In��Cash Out BURTON & ASSOCIATES 40 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 9 - Pro Forma FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FV 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1 Total Water, Lawn Irrigation, Reclaimed Water & Sewer Rate Revenue 2 Base Rate Revenue $ 56,796,694 56,804,650 58,781,122 61,144,645 63,788,183 66,537,364 69,392,271 72,377,283 75,455,347 79,025,867 82,740,681 3 Additional Rate Revenue From Growth $ - (417,794) (106,561) 42,449 9,882 9,547 9,214 8,873 8,545 7,944 116,900 4 OtherRevenue Adjustments(1) $ - 114,267 40,987 22,429 48,520 38,131 46,774 14,510 361,538 342,627 138,991 S Subtotal: Base Revenue With Growth & Adjustments $ 56,796,694 56,501,123 58,715,548 61,209,523 63,846,585 66,585,042 69,445,258 72,400,666 75,825,430 79,376,437 82,996,572 6 Proposed Rate Increases 0.00% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 7 Additional Rate Revenue From Rate Increase $ - 2,450,711 2,551,347 2,662,186 2,777,475 2,897,206 3,022,426 3,151,528 3,301,753 3,457,518 3,615,676 8 PriceElasticityAdjustment $ - (148,771) (153,157) (158,596) (164,465) (170,540) (176,856) (183,296) (190,864) (198,803) (207,151) 9 Total Rate Revenue $ 56,796,694 58,803,063 61,113,739 63,713,113 66,459,595 69,311,708 72,293,828 75,368,899 78,936,318 82,635,353 86,405,096 10 Plus: OtherOperating Revenue (2) $ 2,187,200 2,225,456 2,264,860 2,305,445 2,347,249 2,390,306 2,434,655 2,480,335 2,527,385 2,575,847 2,625,762 11 Equals:TotalOperetingRevenue $ 58,983,894 61,028,519 63,378,599 66,018,558 68,806,844 71,702,015 74,728,483 77,849,234 81,463,704 85,211,000 89,030,859 12 Less: Operating Expenses 13 PurchasedWaterExpense $ (6,561,718) (5,871,092) (4,639,441) (3,99Q801) (4,040,495) - - - - - - 14 0&M $(28,149,315) (30,307,492) (31,688,110) (32,997,555) (39,141,811) (41,147,252) (42,781,702) (44,290,034) (45,988,864) (47,730,642) (49,495,584) 15 Equals: Net Operating Income $ 24,272,861 24,849,936 27,051,095 29,030,202 25,624,538 30,554,762 31,946,782 33,559,199 35,474,840 37,480,358 39,535,274 16 Plus: Non-Opereting Income/(Expense) 17 Non-Operating Revenue $ - - - - - - - - - - - 18 Interest Earned On Fund Balances $ 1,671,701 1,973,744 1,951,197 1,905,007 1,728,708 1,692,141 1,703,829 1,823,015 2,004,721 1,996,286 1,955,755 19 Less: Interest On Interim Financing $ - - (642,241) - (407,744) - (332,644) - (573,347) - (374,682) 20 ImpactFees $ - - 36,461 54,692 54,692 54,692 54,692 54,692 54,692 54,692 54,692 21 Transfers In $ - - - - - - - - - - - 22 Equals: Net Income $ 25,944,562 26,823,680 28,396,465 30,989,901 27,000,194 32,301,595 33,372,659 35,436,906 36,960,906 39,531,335 41,171,039 23 Less: Revenues Excluded From Coverege Test 24 ImpactFees $ - - (36,461) (54,692) (54,692) (54,692) (54,692) (54,692) (54,692) (54,692) (54,692) 25 Transfers In $ - - - - - - - - - - - 26 Equals: Net Income Available For Debt Service $ 25,944,562 26,823,680 28,360,004 30,935,230 26,945,502 32,246,903 33,317,967 35,382,214 36,906,214 39,476,644 41,116,348 27 DebtServiceCOVerageTest 28 ExistingDebtService $ 13,977,296 13,995,921 13,992,154 13,975,889 13,936,296 13,986,838 13,990,439 13,991,186 13,954,321 10,204,568 10,204,606 29 Cumulative New Debt Service $ - 182,337 182,337 2,926,481 2,926,481 5,233,629 5,720,010 8,293,593 8,836,143 10,809,189 11,225,137 30 Total Convential Debt Service Target $ 13,977,296 14,178,259 14,174,491 16,902,370 16,862,777 19,220,466 19,710,449 22,284,779 22,790,464 21,013,756 21,429,743 31 Calculated Debt Service Coverage 1.50 1.86 1.89 2.00 1.83 1.60 1.68 1.69 1.59 1.62 1.88 1.92 32 CashFlowTest 33 Net Income Available For Debt Service $ 25,944,562 26,823,680 28,360,004 30,935,210 26,945,502 32,246,903 33,317,967 35,382,214 36,906,214 39,476,644 41,116,348 34 NetlnterfundTransfers�ln-Out) $ (2,960,850) (3,244,114) (3,356,569) (3,485,823) (3,631,021) (3,784,376) (3,943,611) (4,110,067) (4,281,708) (4,480,504) (4,686,605) 35 NetDebtServicePayment(DebtService-ImpactFeePayment) $(13,977,296) (14,178,259) (14,174,491) (16,902,370) (16,862,777) (19,220,466) (19,710,449) (22,284,779) (22,790,464) (21,013,756) (21,429,743) 36 Short-Term DebtService(Lease Purchase) $ (72,120) (19,340) (19,340) (27,020) (23,560) (7,690) (7,690) (7,690) - - - 37 Renewal & ReplacementTransfer $ (2,677,600) (2,949,195) (3,051,426) (3,168,930) (3,300,928) (3,440,342) (3,585,101) (3,736,424) (3,892,462) (4,073,185) (4,260,550) 38 NetCashFlow $ 6,256,695 6,432,772 7,758,178 7,351,067 3,127,216 5,794,025 6,071,116 5,243,254 5,941,580 9,909,198 10,739,450 39 Unrestricted Working Capital Reserve Fund 40 Balance At Beginning Of Fiscal Year $ 32,163,431 22,165,085 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 41 CashFlowSurplus/(Deficit) $ 6,256,695 6,432,772 7,758,178 7,351,067 3,127,216 5,794,028 6,071,116 5,243,254 5,941,580 9,909,198 10,739,450 42 Projects Paid With Reserve Funds (Non Specified Funds) $ (16,255,041) (19,553,212) (7,720,936) (7,185,866) (1,578,729) (6,302,791) (5,662,504) (4,866,ll1) (5,516,873) (9,473,754) (10,298,214) 43 Balance At End Of Fiscal Year $ 22,165,085 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 12,373,896 44 Minimum Working Capital Reserve Target: 3 Mos $ 8,677,758 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 12,373,896 45 Excess/(Deficiency)OfWorkingCapitalToTarget $ 13,487,327 - - - - - - - - - - (1) Indudes adjustments to revenues per Scenario 7(20-Year Schedule) of the SSE Technical Memorandum dated 12-17-10. (2) Other Operating Revenues ind udes specific service charge revenues, Safety Harbor payments, collection fee charges, rents/leases, and other miscellaneous operati ng revenues. BURTON & ASSOCIATES 41 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 10 - Projected CIP Funding Sources 1 2 3 a 5 6 � 8 9 10 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FINAL CAPITAL PROJECTS fUNDING SOURCES FY 2011 FY 2012 fY 2013 FY 2014 FY 2015 FY 2016 FY 2017 fY 2018 FY 2019 FY 2020 FY 2021 WATER IMPACT FEES $ 1,055,603 405,616 243,708 38,746 36,034 36,000 36,000 36,000 36,000 36,000 36,000 SEWER IMPACT FEES $ 3,000,535 2,934,546 49,143 19,150 18,697 18,692 18,692 18,692 18,692 18,692 18,692 CAPITAL PROJECTS FUND* $ 24,943,084 - - - - - - - - - - RENEWAL & REPLACEMENT $ 16,345,494 2,949,195 3,051,426 3,168,930 3,300,928 3,440,342 3,585,101 3,736,424 3,892,462 4,073,185 4,260,550 REVENUE FUND $ 16,255,041 19,553,212 7,720,936 7,185,866 1,578,729 6,302,791 5,662,504 4,866,171 5,516,873 9,473,754 10,298,214 DEBT PROCEEDS $ - 2,742,207 25,689,633 15,580,050 16,309,776 18,387,842 13,305,748 25,398,837 22,933,869 6,739,130 14,987,282 TOTAL PROJECTS PAID $ 61,599,757 28,584,775 36,754,846 25,992,742 21,244,165 28,185,668 22,608,045 34,056,124 32,397,895 20,340,761 29,600,738 TOTAL CIP INPUT $ 61,599,757 28,584,775 36,754,846 25,992,742 21,244,165 28,185,668 22,608,045 34,056,124 32,397,895 20,340,761 29,600,738 VARIANCE $ - - - - - - - - - - - * Capital Projects Fund includes the proceeds fromthe5eries 2009 Revenue Bonds. BURTON & ASSOCIATES 42 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 11 - Long-Term Borrowing Projections i Term (Years) z Interest Rate s Sources of Funds a ParAmount FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 30 30 30 30 30 30 30 30 30 30 30 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% $0 3,038,958 0 45,735,726 0 38,452,459 0 42,893,044 0 32,884,094 0 s Uses of Funds 5 Proceeds $0 2,742,207 0 41,269,682 0 34,697,619 0 38,704,585 0 29,672,998 0 � Cost of Issuance 2.50% of Par $0 75,974 0 1,143,393 0 961,311 0 1,072,326 0 822,102 0 s Underwriter's Discount $0.00 per $1,000 $0 0 0 0 0 0 0 0 0 0 0 9 Bond Insurance 0 times total Debt Service $0 0 0 0 0 0 0 0 0 0 0 10 Capitalized Interest 0 Year(s) Interest $0 0 0 0 0 0 0 0 0 0 0 u Debt Service Surety 0.00% of Debt Seroice $0 0 0 0 0 0 0 0 0 0 0 iz Debt Service Reseroe 1 Years of Debt Service $0 220,777 0 3,322,651 0 2,793,529 0 3,116,133 0 2,388,994 0 13 Other Costs $0 0 0 0 0 0 0 0 0 0 0 zn Total Uses $0 3,038,958 0 45,735,726 0 38,452,459 0 42,893,044 0 32,884,094 0 15 1 Year Interest 15 Annual Debt Service (1) v Total Debt Seroice is Capital Funding Proceeds Required $0 182,337 0 2,744,144 0 2,307,148 0 2,573,583 0 1,973,046 0 $0 220,777 0 3,322,651 0 2,793,529 0 3,116,133 0 2,388,994 0 $0 6,623,310 0 99,679,521 0 83,805,879 0 93,483,989 0 71,669,809 0 $0 2,742,207 25,689,633 15,580,05016,309,776 18,387,842 13,305,748 25,398,837 22,933,869 6,739,130 14,987,282 i9 Interim Financing Section FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 zo Interest Rate 2.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% zi Utilize Interim Financing? Y N Y N Y N Y N Y N Y zz Proceeds $0 0 25,689,633 016,309,776 0 13,305,748 0 22,933,869 0 14,987,282 z3 Interest Payments $0 0 642,241 0 407,744 0 332,644 0 573,347 0 374,682 za End of Year Balance $0 0 25,689,633 0 16,309,776 0 13,305,748 0 22,933,869 0 14,987,282 2s Proceeds To Be Bond-Funded $0 2,742,207 0 41,269,682 0 34,697,619 0 38,704,585 0 29,672,998 0 z5 Cumulative New Annual Debt Service (1) (2) $0 182,337 182,337 2,926,481 2,926,481 5,233,629 5,720,030 8,293,593 8,836,143 10,809,189 11,225,137 (1) It is assumed that all debt is issued mid-fiscal year, resulting in an interest-only payment in the firstyear. In subsequent years, full payments will be made annually. (2) Bond Issues in FY2012 and FY2014 reflect interestonly payments through the projection period consistentwith the initial wrapped debtserviceschedules provided by Raymond James & Associates. BURTON & ASSOCIATES 43 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS Schedule 12 - Funding Summary by Fund APPENDIX FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1 WATER IMPACT FEES 2 BALANCEATBEGINNINGOFFISCALYEAR $ 1,648,213 615,019 219,708 2,746 34 0 0 0 0 0 0 3 ADDITIONALANNUALREVENUES $ - - 24,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 4 LESS:PAYMENTOFDEBTSERVICE $ - - - - - - - - - - - 5 SUBTOTAL $ 1,648,213 615,019 243,708 38,746 36,034 36,000 36,000 36,000 36,000 36,000 36,000 6 LE55: RESTRICTED FUNDS $ - - - - - - - - - - - 7 TOTALAMOUNTAVAILABLEFORPROJECTS $ 1,648,213 615,019 243,708 38,746 36,034 36,000 36,000 36,000 36,000 36,000 36,000 8 AMOUNT PAID FOR PROJECTS $ (1,055,603) (405,616) (243,708) (38,746) (36,034) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) 9 SUBTOTAL $ 592,610 209,403 - - - - - - - - - 10 ADD BACK: RESTRICTED FUNDS $ - - - - - - - - - - - 11 PLUS:INTERESTEARNINGS $ 22,408 10,305 2,746 34 0 0 0 0 0 0 0 12 LESS: INTERESTALLOCATED TO CASH FLOW $ - - - - - - - - - - - 13 BALANCEATENDOFFISCALYEAR $ 615,019 219,708 2,746 34 0 0 0 0 0 0 0 14 SEWERIMPACTFEES is BALANCEATBEGINNINGOFFISCALYEAR $ 5,848,124 2,934,546 36,682 459 6 0 0 0 0 0 0 16 ADDITIONALANNUALREVENUES $ - - 12,461 18,692 18,692 18,692 18,692 18,692 18,692 18,692 18,692 17 LESS:PAYMENTOFDEBTSERVICE $ - - - - - - - - - - - 18 SUBTOTAL $ 5,848,124 2,934,546 49,143 19,150 18,697 18,692 18,692 18,692 18,692 18,692 18,692 19 LE55: RESTRICTED FUNDS $ - - - - - - - - - - - 20 TOTALAMOUNTAVAILABLEFORPROJECTS $ 5,848,124 2,934,546 49,143 19,150 18,697 18,692 18,692 18,692 18,692 18,692 18,692 21 AMOUNTPAID FOR PROJECTS $ (3,000,535) (2,934,546) (49,143) (19,150) (18,697) (18,692) (18,692) (18,692) (18,692) (18,692) (18,692) 22 SUBTOTAL $ 2,847,589 - - - - - - - - - - 23 ADD BACK: RESTRICTED FUNDS $ - - - - - - - - - - - 24 PLUS:INTERESTEARNINGS $ 86,957 36,682 459 6 0 0 0 0 0 0 0 25 LESS: INTERESTALLOCATED TO CASH FLOW $ - - - - - - - - - - - 26 BALANCEATENDOFFISCALYEAR $ 2,934,546 36,682 459 6 0 0 0 0 0 0 0 27 CAPITAL PROJECTS FUND* 28 BAIANCEATBEGINNINGOFFISCALYEAR $ 24,943,084 - - - - - - - - - - z9 ADDITIONALANNUALREVENUES $ - - - - - - - - - - - 3o LESS:PAYMENTOFDEBTSERVICE $ - - - - - - - - - - - 31 SUBTOTAL $ 24,943,084 - - - - - - - - - - 32 LE55: RESTRICTED FUNDS $ - - - - - - - - - - - 33 TOTALAMOUNTAVAILABLE FOR PROJECTS $ 24,943,084 - - - - - - - - - - 34 AMOUNT PAID FOR PROJECTS $ (24,943,084) - - - - - - - - - - 35 SUBTOTAL $ - - - - - - - - - - - 36 ADD BACK: RESTRICTED FUNDS $ - - - - - - - - - - - 37 PLUS:INTERESTEARNINGS $ 249,431 - - - - - - - - - - 38 LESS: INTERESTALLOCATED TO CASH FLOW $ (249,431) - - - - - - - - - - 39 BALANCEATENDOFFISCALYEAR $ - - - - - - - - - - - BURTON & ASSOCIATES 44 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report Schedule 12 - Funding Summary by Fund FY 2011 FY 2011 WATER & SEWER REVENUE SUFFICIENCY ANALYSIS APPENDIX FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 4o RENEWAL&REPLACEMENT 41 BALANCEATBEGINNINGOFFISCALYEAR $ 13,667,894 - - - - - - - - - - 42 ADDITIONALANNUALREVENUES $ 2,677,600 2,949,195 3,051,426 3,168,930 3,300,928 3,440,342 3,585,101 3,736,424 3,892,462 4,073,185 4,260,550 43 LESS:PAYMENTOFDEBTSERVICE $ - - - - - - - - - - - aa SUBTOTAL $ 16,345,494 2,949,195 3,051,426 3,168,930 3,300,928 3,440,342 3,585,101 3,736,424 3,892,462 4,073,185 4,260,550 45 LESS: RESTRICTED FUNDS $ - - - - - - - - - - - 46 TOTALAMOUNTAVAILABLE FOR PROJECTS $ 16,345,494 2,949,195 3,051,426 3,168,930 3,300,928 3,440,342 3,585,101 3,736,424 3,892,462 4,073,185 4,260,550 47 AMOUNTPAID FOR PROJECTS $ (16,345,494) (2,949,195) (3,051,426) (3,168,930) (3,300,928) (3,440,342) (3,585,101) (3,736,424) (3,892,462) (4,073,185) (4,260,550) 48 SUBTOTAL $ - - - - - - - - - - - 49 ADD BACK: RESTRICTED FUNDS $ - - - - - - - - - - - 50 PLUS:INTERESTEARNINGS $ 136,679 - - - - - - - - - - 51 LESS:INTERESTALLOCATEDTOCASHFLOW $ (136,679) - - - - - - - - - - 52 BALANCEATENDOFFISCALYEAR $ - - - - - - - - - - - 53 REVENUE FUND 54 BALANCEATBEGINNINGOFfISCALYEAR $ 32,163,431 22,165,085 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 55 ADDITIONALANNUALREVENUES $ 6,256,695 6,432,772 7,758,178 7,351,067 3,127,216 5,794,028 6,071,116 5,243,254 5,941,580 9,909,198 10,739,450 56 LESS:PAYMENTOFDEBTSERVICE $ - - - - - - - - - - - 57 SUBTOTAL $ 38,420,126 28,597,858 16,802,824 16,432,955 12,374,305 16,589,605 16,357,930 15,938,679 17,014,089 21,406,414 22,672,110 58 LESS: RESTRICTED FUNDS $ (8,677,758) (9,044,646) (9,081,888) (9,247,089) (10,795,576) (10,286,813) (10,695,425) (11,072,509) (11,497,216) (11,932,660) (12,373,896) 59 TOTALAMOUNTAVAILABLE FOR PROJECTS $ 29,742,368 19,553,212 7,720,936 7,185,866 1,578,729 6,302,791 5,662,504 4,866,171 5,516,873 9,473,754 10,298,214 6o AMOUNTPAID FOR PROJECTS $ (16,255,041) (19,553,212) (7,720,936) (7,185,866) (1,578,729) (6,302,791) (5,662,504) (4,866,171) (5,516,873) (9,473,754) (10,298,214) 61 SUBTOTAL $ 13,487,327 - - - - - - - - - - 62 ADD BACK: RESTRICTED FUNDS $ 8,677,758 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 12,373,896 63 PLUS:INTERESTEARNINGS $ 543,285 390,122 226,582 229,112 250,533 263,530 262,278 272,099 282,122 292,873 303,832 64 LESS:INTERESTALLOCATEDTOCASHFLOW $ (543,285) (390,122) (226,582) (229,112) (250,533) (263,530) (262,278) (272,099) (282,122) (292,873) (303,832) 65 BALANCEATENDOFFISCALYEAR $ 22,165,085 9,044,646 9,081,888 9,247,089 10,795,576 10,286,813 10,695,425 11,072,509 11,497,216 11,932,660 12,373,896 66 RESTRICTED RESERVES 67 BALANCEATBEGINNINGOFFISCALYEAR $ 14,015,380 14,015,380 14,236,157 14,236,157 17,558,808 17,558,808 20,352,337 20,352,337 23,468,470 23,468,470 25,857,464 68 ADDITIONAL FUNDS: $ - - - - - - - - - - - 69 DEBTSERVICE RESERVE ON NEW DEBT $ - 220,777 - 3,322,651 - 2,793,529 - 3,116,133 - 2,388,994 - 70 OTHERADDITIONALFUNDS $ - - - - - - - - - - - 71 SUBTOTAL $ 14,015,380 14,236,157 14,236,157 17,558,808 17,558,808 20,352,337 20,352,337 23,468,470 23,468,470 25,857,464 25,857,464 72 PLUS:INTERESTEARNINGS $ 280,308 353,144 355,904 397,437 438,970 473,889 508,808 547,760 586,712 616,574 646,437 73 LESS: INTERESTALLOCATED TO CASH FLOW $ (280,308) (353,144) (355,904) (397,437) (438,970) (473,889) (508,808) (547,760) (586,712) (616,574) (646,437) 74 BALANCEATENDOFFISCALYEAR $ 14,015,380 14,236,157 14,236,157 17,558,808 17,558,808 20,352,337 20,352,337 23,468,470 23,468,470 25,857,464 25,857,464 * Capital Projects Fund includes the proceeds from the Series 2009 Revenue Bonds . BURTON & ASSOCIATES 45 City of Clearwater Utility Rates • Assessments • Financial Planning Final Report