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

Sanitary Sewer Reserve Capital Outlays FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Sewer Lining Project $0 $150,000 $0 $0 $0 $165,000 $0 $0 Vehicle Replacement 0 0 37,500 0 0 0 0 0 Utility Trailer 1,800 0 0 0 0 0 0 0 Sewer Camera Upgrade 0 0 8,000 0 0 0 0 0 Easement Sewer Machine 0 0 0 0 65,000 0 0 0 W. 4th Street Main Maintenance 50,000 0 0 0 0 0 0 0 Manhole Rehabilitation 25,000 30,000 30,000 30,000 35,000 40,000 0 0 Intake-Catch Basin Rehab 50,000 57,000 57,000 57,000 57,000 57,000 0 0 North Lift Station Rehabilitation 18,000 0 20,000 0 0 0 0 0 Country Club Lift Station Rehabilitation 18,000 0 20,000 0 0 0 0 0 Corn Belt Lift Station Rehabilitation 18,000 0 20,000 0 0 0 0 0 W. 4th Street Lift Station 28,000 0 20,000 0 0 0 0 0 Misc. 0 0 0 0 0 0 100,000 100,000 Total $208,800 $237,000 $212,500 $87,000 $157,000 $262,000 $100,000 $100,000 CSI Capital Outlays FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Reserved $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $0 $0 WTP Reserve Capital Outlays FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Screw Pump Lower Unit $6,500 $0 $0 $0 $0 $0 $0 $0 Replace Driveways 0 0 0 400,000 0 0 0 0 RBC Replacement 5,000 5,000 5,000 5,000 5,000 0 0 0 RBC Cover Replacement 0 0 0 0 50,000 0 0 0 Bio Solid Tank Improvements 0 0 0 50,000 0 0 0 0 EQ Pumping Station Generator 250,000 0 0 0 0 0 0 0 2021 WTP Plant Rehab 0 2,000,000 0 0 0 0 0 0 Placeholder for Plant Upgrade 0 0 0 0 0 0 6,000,000 0 Misc. 0 0 0 0 0 100,000 100,000 100,000 Total $261,500 $2,005,000 $5,000 $455,000 $55,000 $100,000 $6,100,000 $100,000

Prepared by PFM Financial Advisors LLC

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Date: 12/21/2018