FY 2020-2024 Capital Improvement Plan

City of Spencer, Iowa

EXHIBIT 1

Sewer Enterprise Fund

Sewer Rate Adjustments

Growth Assumptions

1-Jul-16 1-Jul-17 1-Jul-18 1-Jul-19 1-Jul-20

4.00% 4.00% 4.00% 4.00% 4.00%

1-Jul-21 1-Jul-22 1-Jul-23 1-Jul-24 1-Jul-25

4.00% 4.00% 4.00% 4.00% 4.00%

Sewer Sales Growth Other O&M Expenses

(1.50%) 3.00% 0.85%

Interest Rate - Cash Balances

Audited Financials Projected 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 FY 2024-25 FY 2025-26 Unaduited Budget Projected Projected Projected Projected Projected Projected

$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 $13.75 307,226 $40.32

$8.95 $4.67 $3.34 $15.00 302,618 $42.63

$9.31 $4.86 $3.47 $16.25 298,079 $44.99

$9.69 $5.05 $3.61 $17.50 293,608 $47.39

$10.07 $5.25 $3.76 $18.75 289,204 $49.83

$10.48 $5.46 $3.91 $20.00 284,865 $52.33

$10.89 $5.68 $4.06 $20.00 280,592 $53.62

$11.33 $5.91 $4.22 $20.00 276,384 $54.96

$11.78 $6.14 $4.39 $20.00 272,238 $56.36

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

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

$4.34

$4.59

$4.79

$4.98

$5.18

$5.39

$5.60

$5.82

$6.06

$6.30

$6.55

7

OPERATING REVENUES Charges for Services Commercial Contracts

$1,419,018 $1,465,635 $1,470,775

$1,506,662 $1,543,425 $1,581,085 $1,619,663 $1,659,183 $1,699,667 $1,741,139 $1,783,623

8 9

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

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

460,161 783,833 20,000 105,999 70,060

440,000 855,090 25,000 100,000 52,500

440,000 926,348 25,000 100,000 52,500

440,000 997,605 25,000 100,000 52,500

440,000 1,068,863 25,000 100,000 52,500

440,000 1,140,120 25,000 100,000 52,500

440,000 1,140,120 25,000 100,000 52,500

440,000 1,140,120 25,000 100,000 52,500

440,000 1,140,120 25,000 100,000 52,500

CSI Charge Revenues

10 11 12 13

Farm Income - Olson Farm Land Leachate Disposal Charge

Misc. Revenue

Total Operating Revenues

14 $2,756,257 $3,079,439 $2,910,828 $2,979,252 $3,087,272 $3,196,190 $3,306,026 $3,416,803 $3,457,287 $3,498,759 $3,541,243

OPERATING EXPENSES Salaries

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

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

$215,767 10,555 40,514 6,013 842,197 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

$244,259

$251,587 44,166 100,235

15 16 17 18 19 20 21 22 23 24

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

42,880 97,315 8,120 19,261 4,776 11,941 77,745 32,239

Payroll Taxes

Repairs and Maintenance

8,363

Utilities

1,023,487

1,054,192

1,085,818

Contract Services Insurance Premiums

19,839 4,919 12,299 80,077 33,207

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

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

2,892 2,970 71,285 26,238

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

Gas & Oil Supplies

Other Expenses Collection Fees

Total Operating Expense Net Operating Income BAB Credit Subsidy

25 $1,262,838 $1,267,020 $1,234,384 $1,333,884 $1,373,901 $1,415,118 $1,457,571 $1,501,298 $1,546,337 $1,592,727 $1,640,509 26 $1,493,419 $1,812,419 $1,676,444 $1,645,368 $1,713,372 $1,781,072 $1,848,454 $1,915,505 $1,910,950 $1,906,031 $1,900,733

65,145 39,207

62,153 46,793

59,323 50,940

48,304 27,000

45,522 37,419

42,656 41,322

39,697 45,132

36,637 46,757

33,476 51,718

30,213 55,385

26,850 60,398

28 29

Interest Income

Revenue Available for Debt Service

30 $1,597,772 $1,921,364 $1,786,707 $1,720,672 $1,796,313 $1,865,050 $1,933,283 $1,998,898 $1,996,144 $1,991,629 $1,987,981

Prepared by PFM Financial Advisors LLC

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Date: 12/21/2018