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

WTP Reserve Beginning Balance

60 $1,466,786 $1,749,891 $1,772,726 $1,630,670 $1,643,170

$858,170 $1,612,461 $1,900,523 $2,137,526 $2,373,213 $2,565,079

287,017

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

29,597 (6,003)

723,500

3,015,000

1,204,291

338,062

337,003

6,335,688

291,866

137,825

Operating Transfer

61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81

0

0

0

0

0

0

0

0

0

Miscellaneous Expenditures

(3,912)

(165,650)

(711,000)

(3,800,000)

(450,000)

(50,000)

(100,000)

(6,100,000)

(100,000)

(100,000)

Capital Expenditures

Ending Balance

$1,749,891 $1,772,726 $1,630,670 $1,643,170

$858,170 $1,612,461 $1,900,523 $2,137,526 $2,373,213 $2,565,079 $2,602,905

Sanitary Sewer Reserve Beginning Balance

$1,153,172 $1,388,389 $1,002,337

$839,269

$609,769

$404,769 $1,519,792 $1,700,391 $1,774,393 $1,908,265 $1,997,807

362,882

298,696

419,228

7,500

7,500

1,202,024

337,599

336,002

333,872

289,541

134,989

Operating Transfer

0

0

0

0

0

0

0

0

0

0

0

Miscellaneous Expenditures

(127,665)

(684,748)

(582,297) $839,269

(237,000) $609,769

(212,500)

(87,000)

(157,000)

(262,000)

(200,000)

(200,000)

(200,000)

Capital Expenditures

Ending Balance

$1,388,389 $1,002,337

$404,769 $1,519,792 $1,700,391 $1,774,393 $1,908,265 $1,997,807 $1,932,796

CSI Reserve Beginning Balance

$454,087 712,770

$603,899 783,833

$619,647 850,798

$645,348 850,000

$699,027 900,000

$671,872 689,492

$675,231 692,820

$678,607 695,839

$682,000 697,548

$685,410 700,957

$688,837 706,033

CSI Revenue

7,483

9,948

14,486

7,500

9,000

3,359

3,376

3,393

3,410

3,427

3,444

Interest

0

0

0

0

0

0

0

0

0

0

0

Capital Expenditures Transfer to Sinking Fund

(570,441) $603,899

(778,032) $619,647

(839,584) $645,348

(803,821) $699,027

(936,155) $671,872

(689,492) $675,231

(692,820) $678,607

(695,839) $682,000

(697,548) $685,410

(700,957) $688,837

(706,033) $692,281

Ending Balance

Sinking Fund Beginning Balance

$416,387 65,451 570,441 (215,000) (634,786) $202,492

$202,492 60,951 778,032

$202,602 $1,011,125 $1,019,626 $1,259,971 $1,259,971 $1,259,971 $1,259,971 $1,259,971 $1,259,971

58,524 839,584 750,000 (839,584)

44,000 803,821

39,000 936,155

45,997 689,492

42,937 692,820

39,775 695,839

36,513 697,548

33,149 700,957

29,676 706,033

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

0

0

0

0

0

0

0

0

0

(838,874)

(839,320)

(734,810)

(735,489)

(735,757)

(735,614)

(734,061)

(734,107)

(735,710)

Debt Service Ending Balance

$202,602 $1,011,125 $1,019,626 $1,259,971 $1,259,971 $1,259,971 $1,259,971 $1,259,971 $1,259,971 $1,259,971 82 $4,536,579 $4,197,320 $4,725,585 $5,403,390 $5,253,516 $5,507,401 $5,990,965 $6,321,184 $6,705,357 $7,008,219 $6,999,848

Total Cash Balance

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

$0 $0 $0

$0 $1,200,000 $0 $1,200,000

$330,000 $330,000

$327,500 $327,500

$325,000 $325,000

$280,000 $280,000

$125,000 $125,000

$0

$0

$0

$0

$0

$0

$0

Prepared by PFM Financial Advisors LLC

Page 3 of 4

Date: 4/25/2020