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

WTP Reserve Beginning Balance

56 $1,312,128 $1,486,671 $1,466,786 $1,749,891 $2,044,391 $2,092,891 $2,040,681 $2,598,026 $2,733,026 $3,238,026

Operating Transfer

196,342

328,605

287,017

308,000

310,000

967,790

562,346

560,000

560,000

560,000

57 58 59

Miscellaneous Expenditures

0

0

0

0

0

0

0

0

0

0

Capital Expenditures

(21,799)

(348,490)

(3,912)

(13,500)

(261,500)

(1,020,000)

(5,000)

(425,000)

(55,000)

(50,000)

Ending Balance

60 $1,486,671 $1,466,786 $1,749,891 $2,044,391 $2,092,891 $2,040,681 $2,598,026 $2,733,026 $3,238,026 $3,748,026

Sanitary Sewer Reserve Beginning Balance

$1,076,651

$991,881 $1,153,172 $1,388,389 $1,548,959 $1,645,159 $1,564,143 $1,564,938 $1,633,240 $1,697,122

61 62 63 64

Operating Transfer

145,779

324,317

362,882

304,000

305,000

143,984

143,295

143,302

143,883

129,426

Miscellaneous Expenditures

0

0

0

0

0

0

0

0

0

0

Capital Expenditures

(230,549)

(163,026)

(127,665)

(143,430)

(208,800)

(225,000)

(142,500)

(75,000)

(80,000)

(50,000)

Ending Balance

65 $991,881 $1,153,172 $1,388,389 $1,548,959 $1,645,159 $1,564,143 $1,564,938 $1,633,240 $1,697,122 $1,776,548

CSI Reserve Beginning Balance

$349,420 564,240

$383,523 634,100

$454,087 712,770

$603,899 775,012

$594,880 855,325

$664,031 926,602

$803,034 926,602

$940,775 926,602 (200,000) (799,779) 7,997 $202,492 41,418 799,779 (841,197) $202,492 0

$875,594 $1,007,174

66 67 68 69 70 71 72 73 74 75 76 77

CSI Revenue

926,602

926,602

Interest

4,297

5,448

7,483

4,000

5,000

5,644

6,826

7,443

8,561

Capital Expenditures Transfer to Sinking Fund

0

0

0

0

0

0

0

0

0

(534,433) $383,523

(568,985) $454,087

(570,441) $603,899

(788,031) $594,880

(791,173) $664,031

(793,244) $803,034

(795,687) $940,775

(802,464)

(825,193)

Ending Balance

$875,594 $1,007,174 $1,117,143

Sinking Fund Beginning Balance

$412,597 71,714 534,433 (621,488) $397,257 0

$397,257 69,133 568,985 (618,988) $416,387 0

$416,387 65,451 570,441 (215,000) (634,786) $202,492

$202,492 52,993 788,031 (841,024) $202,492 0

$202,492 50,304 791,173 (841,477) $202,492 0

$202,492 47,243 793,244 (840,487) $202,492 0

$202,492 44,377 795,687 (840,064) $202,492 0

$202,492 38,358 802,464 (840,822) $202,492 0

$202,492 35,197 825,193 (860,390) $202,492 0

Interest & BAB Credit Transfer from CSI Reserve Transfer from Sewer Operations

Debt Service Ending Balance Total Cash Balance

78 $3,756,191 $4,023,230 $4,536,579 $5,092,558 $5,402,703 $5,022,309 $5,729,216 $5,881,724 $6,593,703 $7,309,561

Deposit to WTP Reserve Deposit to San. Sewer Reserve Deposit to Sinking Fund

$300,000 $300,000

$300,000 $300,000

$950,000 $130,000

$545,000 $130,000

$560,000 $130,000

$560,000 $130,000

560,000 115,000

$0

$0

$0

$0

$0

$0

0

Prepared by PFM Financial Advisors LLC

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