FY 2019-2023 Capital Improvement Plan

City of Spencer, Iowa Sewer Enterprise Fund

EXHIBIT 1

Growth Assumptions

Sewer Rate Adjustments

Sewer Sales Growth Other O&M Expenses

(1.50%) 3.00% 0.85%

1-Jul-16 1-Jul-17 1-Jul-18 1-Jul-19

4.00% 4.00% 4.00% 4.00%

1-Jul-20 1-Jul-21 1-Jul-22 1-Jul-23

4.00% 4.00% 4.00% 4.00%

Interest Rate - Cash Balances

Budget Projected FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Audited Financial Statements Budget Projected Projected Projected Projected

First 1,000 gallons per Month Next 49,000 gallons per Month Over 50,000 gallons per Month

$7.65 $3.99 $2.86 $10.00 330,113 $33.61

$7.96 $4.15 $2.97 $11.25 326,612 $35.81

$8.28 $4.32 $3.09 $12.50 319,334 $38.06

$8.61 $4.49 $3.21 $13.75 314,544 $40.32

$8.95 $4.67 $3.34 $15.00 309,825 $42.63

$9.31 $4.86 $3.47 $16.25 305,178 $44.99

$9.69 $5.05 $3.61 $16.25 300,600 $46.14

$10.07 $5.25 $3.76 $16.25 296,091 $47.33

$10.48 $5.46 $3.91 $16.25 291,650 $48.58

$10.89 $5.68 $4.06 $16.25 287,275 $49.87

1 2 3 4 5 6

CSI Charge

Subtotal Water Sales (1,000 Gallons) Monthly Bill @ 5,000 gallons Ave Revenue per 1,000 Gallons

$4.16

$4.34

$4.59

$4.77

$4.96

$5.16

$5.37

$5.58

$5.81

$6.04

7

OPERATING REVENUES Charges for Services

$1,371,815 $1,419,018 $1,465,635

$1,501,396 $1,538,030 $1,575,558 $1,614,002 $1,653,383 $1,693,726 $1,735,053

8

Contracts- Best Egg/Eatons/Rembran 9

501,424 564,240 35,000 67,619

554,631 634,100 15,000 65,145 64,468 69,040

620,426 712,770 36,000 62,153 105,329 139,278

440,000 775,012 30,000 50,993 50,000 52,500

440,000 855,325 25,000 48,304 100,000 52,500

440,000 926,602 25,000 45,522 100,000 52,500

440,000 926,602 25,000 42,656 100,000 52,500

440,000 926,602 25,000 39,697 100,000 52,500

440,000 926,602 25,000 36,637 100,000 52,500

440,000 926,602 25,000 33,476 100,000 52,500

CSI Charge Revenues

10 11

Farm Income - Olson Farm Land Build America Bond Credit Subsidy 12

Leachate Disposal Charge

0

13 14

Misc. Revenue

66,510

Total Operating Revenues

15 $2,606,607 $2,821,403 $3,141,591 $2,899,901 $3,059,159 $3,165,182 $3,200,759 $3,237,182 $3,274,464 $3,312,630

OPERATING EXPENSES Salaries

$228,003 36,318 39,303 5,467 803,003 27,643

$235,456 37,059 35,474 5,309 839,959 28,000

$220,001 36,913 44,722 7,971 840,332 15,776

$208,062 35,286 80,000 5,800 864,528 15,953

$204,563 35,911 81,500 6,800 882,869 16,131

$210,700 36,988 83,945 7,004 909,355 16,615

$217,021 38,098 86,463 7,214 936,636 17,113

$223,532 39,241 89,057 7,431 964,735 17,627

$230,237 40,418 91,729 7,653 993,677 18,156

$237,145

16 17 18 19 20 21 22 23 24 25 26

Payroll Taxes

41,631 94,481 7,883 18,700 4,637 11,593 75,480 31,300

Repairs and Maintenance

Utilities

Contract Services Insurance Premiums

1,023,487

Gas & Oil Supplies

3,370 5,639 74,886 26,025

1,954 3,702 49,824 26,100

2,819 12,968 59,419 26,100

4,000 10,000 62,110 27,000

4,000 10,000 65,110 27,000

4,120 10,300 67,063 27,810

4,244 10,609 69,075 28,644

4,371 10,927 71,147 29,504

4,502 11,255 73,282 30,389

Other Expenses Collection Fees Depreciation

0

0

0

0

0

0

0

0

0

0

Total Operating Expense Net Operating Income

27 $1,249,656 $1,262,838 $1,267,020 $1,312,739 $1,333,884 $1,373,901 $1,415,118 $1,457,571 $1,501,298 $1,546,337 28 $1,356,951 $1,558,565 $1,874,572 $1,587,162 $1,725,275 $1,791,281 $1,785,642 $1,779,611 $1,773,166 $1,766,293

Interest Income

34,732

39,207

46,793

22,000

27,000

45,923

42,690

48,698

49,995

56,046

29

Revenue Available for Debt Service

30 $1,391,683 $1,597,772 $1,921,364 $1,609,162 $1,752,275 $1,837,204 $1,828,331 $1,828,309 $1,823,161 $1,822,339

Prepared by PFM Financial Advisors LLC