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

WTP Reserve Beginning Balance

59 $1,486,671 $1,466,786 $1,749,891 $1,772,726 $1,821,226 $2,551,355 $3,055,275 $3,176,933 $3,760,173 $4,295,787 $4,828,430

328,605

287,017

331,592 (23,116) (285,642)

310,000

2,735,129

508,920

576,658

638,240

635,614

6,632,643

540,867

Operating Transfer

60 61 62

0

0

0

0

0

0

0

0

0

0

Miscellaneous Expenditures

(348,490)

(3,912)

(261,500)

(2,005,000)

(5,000)

(455,000)

(55,000)

(100,000)

(6,100,000)

(100,000)

Capital Expenditures

Ending Balance

63 $1,466,786 $1,749,891 $1,772,726 $1,821,226 $2,551,355 $3,055,275 $3,176,933 $3,760,173 $4,295,787 $4,828,430 $5,269,297

Sanitary Sewer Reserve Beginning Balance

64 $991,881 $1,153,172 $1,388,389 $1,002,337 $1,098,537 $1,000,874

$926,882 137,878

$977,760 138,311 (157,000) $959,071 0

$959,071 138,152 (262,000) $835,223 0

$835,223 137,099 (100,000) $872,323 0

$872,323 137,415 (100,000) $909,738 0

324,317

362,882

298,696

305,000

139,338

138,507

Operating Transfer

65 66 67

0

0

0

0

0

0

0

Miscellaneous Expenditures

(163,026)

(127,665)

(684,748)

(208,800)

(237,000)

(212,500) $926,882

(87,000)

Capital Expenditures

Ending Balance

68 $1,153,172 $1,388,389 $1,002,337 $1,098,537 $1,000,874

$977,760

CSI Reserve Beginning Balance

$383,523 634,100

$454,087 712,770

$603,899 783,833

$619,647 855,090

$688,564 793,243

$694,417 795,686

$700,320 799,778

$706,272 802,463

$712,276 805,774

$718,330 808,677

$724,436 812,174

69 70 71 72 73 74 75 76 77 78 79 80

CSI Revenue

5,448

7,483

9,948

5,000

5,853

5,903

5,953

6,003

6,054

6,106

6,158

Interest

0

0

0

0

0

0

0

0

0

0

0

Capital Expenditures Transfer to Sinking Fund

(568,985) $454,087

(570,441) $603,899

(778,032) $619,647

(791,173) $688,564

(793,243) $694,417

(795,686) $700,320

(799,778) $706,272

(802,463) $712,276

(805,774) $718,330

(808,677) $724,436

(812,174) $730,594

Ending Balance

Sinking Fund Beginning Balance

$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 60,951 778,032 (838,874) $202,602 0

$202,602 50,304 791,173 (841,477) $202,602 0

$202,602 47,244 793,243 (840,487) $202,602 0

$202,602 44,378 795,686 (840,064) $202,602 0

$202,602 41,419 799,778 (841,197) $202,602 0

$202,602 38,359 802,463 (840,822) $202,602 0

$202,602 35,198 805,774 (840,972) $202,602 0

$202,602 31,935 808,677 (840,613) $202,602 0

$202,602 28,572 812,174 (840,746) $202,602 0

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

Debt Service Ending Balance

81 $4,023,230 $4,536,579 $4,171,322 $4,402,253 $4,861,418 $5,309,613 $5,500,838 $6,084,511 $6,515,843 $7,105,608 $7,604,382

Total Cash Balance

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

$300,000 $300,000

$719,649 $130,000

$487,234 $130,000

$550,688 $130,000

$611,236 $130,000

$603,652 $130,000

$596,129 $130,000

$499,825 $130,000

$0

$0

$0

$0

$0

$0

$0

$0

Prepared by PFM Financial Advisors LLC

Page 3 of 4

Date: 12/21/2018