FY 21-25 CIP

City of Spencer, Iowa Sewer Enterprise Fund

EXHIBIT 1

Sewer Rate Adjustments 4.00% 1-Jul-23 4.00% 1-Jul-24 4.00% 1-Jul-25 4.00% 1-Jul-26

Growth Assumptions

1-Jul-18 1-Jul-19 1-Jul-20 1-Jul-21 1-Jul-22

4.00% 4.00% 4.00% 4.00%

Sewer Sales Growth Other O&M Expenses

(1.50%) 3.00% 0.50%

Interest Rate - Cash Balances

4.00%

Audited Financial Statements Projected 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 FY 2026-27 Budget Budget Projected Projected Projected Projected Projected

$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 $15.00 304,748 $42.63

$9.31 $4.86 $3.47 $16.25 300,177 $45.00

$9.68 $5.06 $3.61 $16.25 295,674 $46.17

$10.07 $5.26 $3.75 $16.25 291,239 $47.37

$10.47 $5.47 $3.90 $16.25 286,870 $48.61

$10.89 $5.69 $4.06 $16.25 282,567 $49.91

$11.32 $5.92 $4.22 $16.25 278,329 $51.25

$11.78 $6.16 $4.39 $16.25 274,154 $52.65

$12.25 $6.40 $4.57 $16.25 270,042 $54.11

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

$4.59

$4.79

$5.12

$5.32

$5.54

$5.76

$5.99

$6.23

$6.48

$6.74

$7.01

7

OPERATING REVENUES Charges for Services Commercial Contracts CSI Charge Revenues

8 $1,465,635 $1,470,775 $1,560,232 $1,588,750 $1,600,000 $1,677,250 $1,718,175 $1,760,099 $1,803,045 $1,847,039 $1,892,107

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

460,161 783,833 20,000 105,999 72,789

658,595 850,798 10,000 129,740 113,726

475,000 850,000 25,000 125,000 50,000

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

500,000 900,000 20,000 100,000 69,500

9

10 11 12 13

Farm Income - Olson Farm Land Leachate Disposal Charge

Misc. Revenue

Total Operating Revenues

14 $3,079,439 $2,913,557 $3,323,091 $3,113,750 $3,189,500 $3,266,750 $3,307,675 $3,349,599 $3,392,545 $3,436,539 $3,481,607

OPERATING EXPENSES Salaries

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

$215,767 10,555 40,514 6,013 842,197 15,953

$201,330 36,337 34,197 8,098 859,032 34,686

$208,912 35,563 82,000 7,050 906,690 36,594

$221,505 37,444 87,000 7,050 913,744 38,984

$228,150 38,567 89,610 7,262 941,156 40,154

$234,995 39,724 92,298 7,479 969,391 41,358

$242,044 40,916 95,067 7,704 998,473 42,599

$249,306

$256,785 43,408 100,857

$264,489 44,710 103,883

15 16 17 18 19 20 21 22 23 24

42,144 97,919 7,935 43,877 4,952 11,255 86,101 32,640

Payroll Taxes

Repairs and Maintenance

8,173

8,418

Utilities

1,028,427

1,059,279

1,091,058

Contract Services Insurance Premiums

45,193 5,101 11,593 88,684 33,619

46,549 5,254 11,941 91,345 34,628

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

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

4,306 6,266

4,400 10,000 71,144 29,000

4,400 10,000 76,500 29,000

4,532 10,300 78,795 29,870

4,668 10,609 81,159 30,766

4,808 10,927 83,594 31,689

Gas & Oil Supplies

102,367 26,250

Other Expenses Collection Fees

Total Operating Expense Net Operating Income BAB Credit Subsidy

25 $1,267,020 $1,234,384 $1,312,870 $1,391,353 $1,425,627 $1,468,396 $1,512,447 $1,557,821 $1,604,556 $1,652,692 $1,702,273 26 $1,812,419 $1,679,173 $2,010,221 $1,722,397 $1,763,873 $1,798,355 $1,795,228 $1,791,778 $1,787,989 $1,783,847 $1,779,334

62,153 46,793

59,323 50,940

56,435 72,392

42,000 37,000

36,000 42,000

39,697 26,268

36,637 27,537

33,476 29,955

30,213 31,606

26,850 33,527

23,376 35,041

28 29

Interest Income

Revenue Available for Debt Service

30 $1,921,364 $1,789,436 $2,139,048 $1,801,397 $1,841,873 $1,864,319 $1,859,401 $1,855,208 $1,849,808 $1,844,223 $1,837,752

Prepared by PFM Financial Advisors LLC

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Date: 4/25/2020