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

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

Sewer Debt Service Series 2009 SRF Loan Series 2010 SRF Loan Series 2016 SRF Loan

$103,715 515,778

$103,635 515,353

$104,490 515,635

$104,248 515,593 221,184

$103,940 516,225 221,312

$104,568 515,500 220,419

$104,098 515,450 220,516

$104,563 516,043 220,592

$103,930 516,245 220,647

104,233 516,058 240,100

31 32 33 34 35 36 37 38

0 0

0 0

14,661

Reserved

0

0

0

0

0

0

0

0

Total Revenue Debt

$619,493 $51,568 $51,568 $671,061 0

$618,988 $54,845 $54,845 $673,833 0

$634,786 $53,301 $53,301 $688,087 0

$841,024

$841,477

$840,487

$840,064

$841,197

$840,822

$860,390

Series 2007 G.O. Land Bonds Series 2017 G.O. Sewer SRF Loan

$0

$0

$0

$0

$0

$0

$0

23,523 $23,523 $864,547

95,080 $95,080 $936,557

95,780 $95,780 $936,267

96,440 $96,440 $936,504

96,060 $96,060 $937,257

95,660 $95,660 $936,482

105,200 $105,200 $965,590

Total G.O. Debt

Total Sewer Debt

39

Debt Service Coverage

Net Revenues / Revenue Debt Net Revenues / All Debt

2.25 2.07

2.58 2.37

3.03 2.79

1.91 1.86

2.08 1.87

2.19 1.96

2.18 1.95

2.17 1.95

2.17 1.95

2.12 1.89

40 41

Net Cashflow After Debt

$720,623

$923,939 $1,233,277

$744,615

$815,718

$900,937

$891,828

$891,052

$886,679

$856,749

42 43 44 45 46 47 48 49 50 51

Series 2007 - Cash Defeasance

0

0

(380,000) (287,017) (283,917) (149,812) 213,894 (273,000) (14,316) $59,110 0

0

0

0

0

0

0

0

WTP Reserve

(196,342) (145,779) (34,103)

(328,605) (324,317) (70,564) (19,130) (100,000) (45,385) $35,938 0

(308,000) (304,000)

(310,000) (305,000) (69,151)

(967,790) (143,984) (139,002)

(562,346) (143,295) (137,741)

(560,000) (143,302) (134,819)

(560,000) (143,883) (131,580)

(560,000) (129,426) (109,969)

Sanitary Sewer Reserve

CSI Reserve Sinking Fund Storm Sewer Bond Proceeds

9,019

15,341

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

(187,500)

0

Other Cash Sources / (Uses)

(41,261) $130,979

(31,706) $109,928

(35,273) $96,293

(36,331) ($386,169)

(37,421) $11,025

(38,544) $14,387

(39,700) $11,516

(40,891) $16,463

Annual Surplus / (Deficit)

Operating Cash Beginning Balance

$365,880 130,979 $496,859

$496,859

$532,798

$591,908 109,928 $701,836

$701,836

$798,129 (386,169) $411,960

$411,960

$422,984

$437,371

$448,888

52 53 54

Annual Surplus / (Deficit)

35,938

59,110

96,293

11,025

14,387

11,516

16,463

Ending Balance

$532,798

$591,908

$798,129

$422,984

$437,371

$448,888

$465,351

Cash Balance as % of O&M

40%

42%

47%

53%

60%

30%

30%

30%

30%

30%

55

Prepared by PFM Financial Advisors LLC

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