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

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

Sewer Debt Service Series 2009 SRF Loan Series 2010 SRF Loan Series 2016 SRF Loan

$104,490 515,635

$104,248 515,593 219,034

$103,940 516,225 219,119

$104,568 515,500 219,253

$0

$0

$0

0

0

0

0

31 32 33 34 35 36 37 38 39

515,450 219,360

516,043 219,446

516,245 219,512

516,058 219,557

515,480 218,581

515,513 218,594

516,123 219,587

14,661

0

0

0

0

0

0

0

0

0

0

0

Reserved

Total Revenue Debt

$634,786 $53,301

$838,874

$839,284

$839,320

$734,810

$735,489

$735,757

$735,614

$734,061

$734,107

$735,710

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Series 2007 G.O. Land Bonds Series 2017 G.O. Sewer SRF Loan Series 2018 G.O. Sewer SRF Loan

0 0 0 0 0

21,658

94,703 25,953

0 0 0 0

94,020 95,820 89,350

94,680 96,480 86,550 96,031

94,300 96,100 83,750 195,800

94,900 95,700 81,650 193,100

94,460 96,280 84,550 195,400

94,000 95,820 82,300 192,600 82,824 $547,544

94,520 96,340 80,050 194,800 386,200 $851,910

0 0 0 0

0 0 0

81,013

Series 2019 G.O. Bonds

0 0

Prop. Series 2020 G.O. Sewer SRF Loan 40 Prop. Series 2025 G.O. Sewer SRF Loan 41

0

0

0

0

Total G.O. Debt

$53,301 $688,087

$21,658 $860,533

$120,656 $959,940

$81,013

$279,190

$373,741

$469,950

$465,350

$470,690

42

Total Sewer Debt

$920,334 $1,014,000 $1,109,230 $1,205,707 $1,200,964 $1,204,751 $1,281,650 $1,587,620

43

Debt Service Coverage

3.03 2.79

2.13 2.08

2.55 2.23

2.15 1.96

2.51 1.82

2.53 1.68

2.53 1.54

2.52 1.54

2.52 1.54

2.51 1.44

2.50 1.16

Net Revenues / Revenue Debt Net Revenues / All Debt

44 45

Net Cashflow After Debt

$1,233,277 (380,000) (287,017) (283,917) (149,812) 213,894 (273,000)

$928,904 $1,179,108

$881,063

$827,873

$755,089

$653,694

$654,244

$645,058

$562,573

$250,132

46 47 48 49 50 51 52 53 54 55

0

0

0

0

0

0

0

0

0

0

Cash Defeasance WTP Reserve CSI Reserve Sinking Fund Storm Sewer Bond Proceeds Sanitary Sewer Reserve Other Cash Sources / (Uses)

(331,592) (298,696) (15,748)

(29,597) (419,228) (25,700) (808,524)

(723,500) (7,500) (53,679) (8,501) 711,000 33,741 $832,625 0

(3,015,000) (7,500) 27,155 (240,345)

(1,204,291) (1,202,024)

(338,062) (337,599)

(337,003) (336,002)

(6,335,688) (333,872)

(291,866) (289,541)

(137,825) (134,989)

(3,359)

(3,376)

(3,393)

(3,410)

(3,427)

(3,444)

(109)

0 0 0

0 0 0

0 0 0

0 0

0 0 0

0 0 0

(287,879)

0 0

0

0

0

3,000,000

6,000,000 39,115 $11,203

(14,316) $59,110

13,221 $8,100

103,108

34,753

35,796

36,870 $11,527

37,976 $15,822

40,289 $18,027

41,497 $15,370

Annual Surplus / (Deficit)

($834)

$626,936 ($1,618,789)

Operating Cash Beginning Balance

$532,798

$591,908

$600,008

$599,174 $1,431,799 $2,058,735

$439,946

$451,472

$467,294

$478,497

$496,524

56 57 58

59,110

8,100

(834)

832,625

626,936 (1,618,789)

11,527

15,822

11,203

18,027

15,370

Annual Surplus / (Deficit)

Ending Balance

$591,908

$600,008

$599,174 $1,431,799 $2,058,735

$439,946

$451,472

$467,294

$478,497

$496,524

$511,895

47%

49%

46%

103%

144%

30%

30%

30%

30%

30%

30%

Cash Balance as % of O&M

59

Note: Assumes full borrowing of $6 million WTP Upgrade in FY 2025, but City can likely draw down large cash balance in WTP Reserve to lessen debt burden.

Prepared by PFM Financial Advisors LLC

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Date: 4/25/2020