2016 MMSD Budget

Milwaukee Metropolitan Sewerage District

2016 Proposed Operations and Maintenance

& Capital Budgets


2016 Proposed Budget

Commissioners

Ben Gramling

Chair

John R. Hermes

Vice Chair

Lyle A. Balistreri

Eugene Manzanet

Carl Krueger

Jim Bohl

Kris Martinsek

Kathy Ehley

Milele Coggs

Nikiya Harris Dodd

Michael A. West

Executive Director

Kevin L. Shafer, P.E.

Division Directors Susan B. Anthony

Legal Services

Mark T. Kaminski, CPA

Finance

Timothy R. Bate, P.E.

Planning, Research and Sustainability

Michael J. Martin, P.E.

Technical Services

Jeff Spence

Community Outreach and Business

Engagement

Sharon Mertens

Water Quality Protection

Managing and Contributing Staff

Mark T. Kaminski, Director of Finance/Treasurer

Mickie Pearsall, Deputy Director of Finance

Theresa Zwieg, Management & Budget Analyst

Christine Durkin, Management & Budget Analyst

Don Nehmer, Controller

Rick Niederstadt, Capital Program Business Manager

Starr Pentek-Schuetz, Graphic Designer

RJ Pire, Budget Intern

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to the Milwaukee Metropolitan Sewerage District, Milwaukee, WI for its annual budget for the fiscal year beginning January 1, 2015. In order to receive this award, a governmental unit must publish a budget that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

2010 x NACWA Public Information and Education Award x 2010 Wisconsin APA Award - Planning Category, Kinnickinnic River Corridor Neighborhood Plan x Distinguished Public-Private Partnership Service Award from the National Council for Public Private Partnerships x GFOA Certificate of Achievement for Excellence in Financial Reporting x GFOA Distinguished Budget Presentation Award

2011 x Daily Reporter Newsmakers of the Year Award-2011 Green Innovator of the Year x Earn and Learn Award x GFOA Certificate of Achievement for Excellence in Financial Reporting x GFOA Distinguished Budget Presentation Award

2012 x ACEC Awards for Milwaukee County Grounds and 27th Street ISS (Deep Tunnel) Extension Projects x NACWA Peak Performance Award x GFOA Certificate of Achievement for Excellence in Financial Reporting x GFOA Distinguished Budget Presentation Award x NACWA Public Information and Education Award x Honor from the Housing Authority of the City of Milwaukee x 2012 United States Water Prize – US Water Alliance x Community Partner Award

2013 x Business Council – Strategic Partner of the Year Award x GFOA Certificate of Achievement for Excellence in Financial Reporting x GFOA Distinguished Budget Presentation Award x APWA – Environment Project of the Year Award x NACWA Peak Performance Award x

2014 x GFOA Certificate of Achievement for Excellence in Financial Reporting x GFOA Distinguished Budget Presentation Award x American Public Works Association 2014 Project of the Year Award x 2014 Public/Private Partnership Award x 2014 Governmental Partner of the Year Award x NACWA Peak Performance Award x

2015 x GFOA Certificate of Achievement for Excellence in Financial Reporting x NACWA Water Resources Utility of the Future Award x 2015 ACEC Engineering Excellence Award x NACWA Peak Performance Award

Recent District Awards and Honors

Milwaukee Metropolitan Sewerage District 2016 Proposed Operations & Maintenance and Capital Budgets

Table of Contents Budget Message from the Executive Director ................................................................................................ i Combined Summary for Operations & Maintenance and Capital Budgets .................................... 1

Background, Statistical, and Supplemental Information ......................................................................... 1

Financial Planning Process .................................................................................................................................. 9

Budget Review and Adoption Calendar ...................................................................................................... 10

The District’s Financial Performance ............................................................................................................. 11

District Fund Structure and Comparison of Budgets .............................................................................. 12

Combined Summary of Expenses and Revenues ..................................................................................... 14

Strategic Plan ................................................................................................................................................................ 17

Operations & Maintenance Budget Summary ............................................................................................. 25

Overview of the 2016 Operations & Maintenance Budget .................................................................. 25

District-wide Organization Chart ................................................................................................................... 27

Staffing Summary ................................................................................................................................................. 28

Revenues and Expenditures ............................................................................................................................. 30

Sources of Funds ........................................................................................................................................................ 33

Funding Summary ................................................................................................................................................ 33

User Charge Billings ............................................................................................................................................ 34

Milorganite® Sales .............................................................................................................................................. 35

Other Income ......................................................................................................................................................... 36

Household Hazardous Waste Collection Program .................................................................................. 37

Industrial Waste Pretreatment Program ...................................................................................................... 38

Surplus Returned .................................................................................................................................................. 39

Interest Income ..................................................................................................................................................... 39

Equipment Replacement Fund ........................................................................................................................ 40

User Charge Stabilization Fund ...................................................................................................................... 40 Divisions

Commission ............................................................................................................................................................ 41

Office of the Executive Director ...................................................................................................................... 45

Legal Services ........................................................................................................................................................ 49

Finance ..................................................................................................................................................................... 53

Technical Services ................................................................................................................................................ 57

Planning, Research, and Sustainability ......................................................................................................... 61

Water Quality Protection ................................................................................................................................... 65

Community Outreach and Business Engagement ................................................................................... 69

Other Expenditures .................................................................................................................................................... 73

Fringe Benefits ....................................................................................................................................................... 73

Charges to Capital .............................................................................................................................................. .74

Unallocated Reserve........................................................................................................................................... .75

Capital Budget Capital Budget Summary .......................................................................................................................................... .77


Table of Contents Capital Budget Overview ........................................................................................................................................... .77

2016 Capital Budget Summary of Revenues and Expenditures ........................................................ .80 Long-range Financing Plan ............................................................................................................................. .81 Uses of Funds ....................................................................................................................................................... .82

Capital Sources of Funds ........................................................................................................................................... .87 Actual and Projected Tax Levies .................................................................................................................... .88

Water Reclamation Facilities Jones Island Water Reclamation Facility Project Descriptions

Primary Treatment .............................................................................................................................................. .95 Secondary Treatment ........................................................................................................................................ .96 Advanced Treatment.......................................................................................................................................... .98 Solids Processing ................................................................................................................................................. .99 Solids Manufacturing ....................................................................................................................................... 101 General Projects ................................................................................................................................................. 105

South Shore Water Reclamation Facility Project Descriptions Primary Treatment ............................................................................................................................................ 116 Secondary Treatment ...................................................................................................................................... 118 Advanced Treatment........................................................................................................................................ 120 Solids Processing ............................................................................................................................................... 121 Solids Manufacturing ....................................................................................................................................... 125 General Projects ................................................................................................................................................. 125

Interplant Pipeline Project Descriptions Interplant Pipeline ............................................................................................................................................. 132

Landfill Gas Pipeline Project Descriptions Energy Gas Pipeline .......................................................................................................................................... 135

Conveyance Facilities Conveyance Facilities Overview ................................................................................................................... 137

Conveyance Facilities Project Descriptions MIS Subsystem 1 – South Shore Main Branch ....................................................................................... 139 MIS Subsystem 2 – Southwest Branch ...................................................................................................... 139 MIS Subsystem 3 – Northwest Branch ...................................................................................................... 140 MIS Subsystem 4- Northeast Branch ......................................................................................................... 142 MIS Subsystem 5 – North Side High Level Branch ............................................................................... 143 MIS Subsystem 6- South Side High Level Branch ................................................................................. 144 MIS Subsystem 7 – Low Level Branch ....................................................................................................... 145 General Interceptor Sewer System ............................................................................................................. 146

Inline Storage System Project Descriptions Drop Shafts .......................................................................................................................................................... 150 Near-surface Collector Sewers ..................................................................................................................... 150 Combined Sewer Overflow Structures ...................................................................................................... 150


Table of Contents Central Control Room Project Descriptions

Conveyance System Central Control ......................................................................................................... 152 Watercourse and Flood Management Projects

Watercourse and Flood Management Overview .................................................................................. 155 Milwaukee River Watershed.......................................................................................................................... 160 Menomonee River Watershed ..................................................................................................................... 162 Root River Watershed...................................................................................................................................... 169 Kinnickinnic River Watershed ....................................................................................................................... 169 Oak Creek Watershed ...................................................................................................................................... 172 Lake Michigan Drainage ................................................................................................................................. 173 General Watercourse Projects ...................................................................................................................... 173

Other Projects Other Projects Overview ................................................................................................................................. 179 Other Projects Project Descriptions Facilities Management .................................................................................................................................... 180 Facilities Planning .............................................................................................................................................. 183 Workforce & Business Development Resource Program .................................................................. 193 Information Technology Software Systems ............................................................................................ 194 Financial Planning ............................................................................................................................................. 196 Risk Management Program ........................................................................................................................... 197

Debt Service Debt Service Overview .................................................................................................................................... 199 Debt Service Payments Compared to Total Capital Expenditures in the Six-year Forecast . 201 District Bonds...................................................................................................................................................... 202 State Loans .......................................................................................................................................................... 203

Appendices Glossary ................................................................................................................................................................. 207 Pay Grade, Salary, and Wage Information ............................................................................................... 216 Budget Policies ................................................................................................................................................... 219 Proposed Capital Budget Line Item ........................................................................................................... 224

i

September 5, 2015

Commissioners


260 West Seeboth Street

Milwaukee, Wisconsin 53204-1446

Commissioners:

I am pleased to submit the Milwaukee Metropolitan Sewerage District’s Proposed 2016 Operations & Maintenance and Capital Budgets for which the primary goal is to ensure clean water. The goal of clean

water is espoused at all levels of government from federal, state to local; however, the burden of clean water

financing has shifted over the last several decades from federal to local sources. In the 1980s and 1990s, the

Water Pollution Abatement Program was supported by significant grant funding resulting from the Clean

Water Act. Today, federal financial resources for clean water are limited and face significant challenges to

expanding further funding in the future, although the needs for clean water continue to grow. This means

that, at least in the near-term, the District will continue to rely on local sources. The District remains engaged

in promoting expansions to federal funding for clean water. Until that time, the budgets balance and

prioritize limited financial resources against unlimited demands and continue to support the District’s mission to cost-effectively protect the quality of the region’s water resources.

Financial planning has always been a strength of the District. Both budgets have long-range planning

incorporated into the process so that the impact of decisions made for the current year can be seen in future

years. There are several unknown factors that could impact the long-range planning on the Capital Budget

and the O&M Budget, so as the District proceeds through the next several years and gains more information,

a better understanding of the impact of these factors will be critical.

For the Capital Budget, the capital improvements program for 2018 and beyond is being developed by the

current facilities planning process. The Facilities Plan is taking a broad look at District facilities and will make

recommendations based on a needs analysis, innovations and prioritization. This will be completed in 2017

and the results will first be included in the 2018 budget. Currently the capital long-range financing plan

encompasses 2021, and the District is aware that changes could be forthcoming.

For the O&M Budget, the largest expenditure is the operating contract with Veolia Water-Milwaukee. This

contract expires in 2018. The District is evaluating options for the future which include a possible contract

ii

extension, a Request for Proposals process, or a return to public sector. This determination will also be done

in 2017 and will be included in the 2018 budget.

Moreover, the District continues its internal planning processes and has completed its Strategic Plan for 2016-

2018. The plan focuses on needs to better position itself and the region for success by 2018. Some of the

focus areas are addressing significant expected workforce transitions, planning for future information

technology needs and managing the rapid pace of change in technology, developing outreach plans to

promote District messaging, as well as developing financial planning scenarios to address future budget

challenges.

Highlights of the 2016 Capital Budget

The 2016 Capital Budget is $216,265,000. The 2016 tax levy increases 2.5 percent from the 2015 level. This

compares to a 4 percent increase projected for 2016 one year ago. The long-range financing plan includes a

tax levy increase of 4 percent for each year from 2017 through 2021. This is consistent with tax levy

projections for that period from one year ago.

Highlighted projects include:

x CAPACITY: South Shore Capacity Improvements, Mill/Green Bay/Green Tree MIS Relief

x ASSET MANAGEMENT: Jones Island and South Shore Building Roof Replacement, Milorganite Facilities

Improvement Phase III, Aeration Basin Concrete Rehabilitation, Conveyance Gate Rehabilitation,

Interplant Pipeline Improvements

x SUSTAINABILITY: Fresh Coast Green Solutions, Green Solutions

x WATERCOURSE AND FLOOD MANAGEMENT: 30th

Street Corridor, Underwood Creek Phase II,

Kinnickinnic River Flood Management, and the Greenseams®

program

Highlights of the 2016 Operations & Maintenance Budget

The 2016 Operations & Maintenance (O&M) Budget is $89,765,197. In the O&M Budget, the 2016 user

charge billings increase is 2.5 percent, which is on target with the projected 2.5 percent user charges billings

increase as forecast in the 2015 budget.

In the 2016 O&M Budget, user charge billings are $73.3 million, a 2.5 percent change from the 2015

budgeted level.

In addition to user charge billings, the District has other operating revenue sources. The District’s second largest O&M revenue source is from Milorganite

® net revenue. The Milorganite

® net revenue in the 2016

O&M Budget is projected to be $7,830,000, a 0.7 percent increase from the 2015 O&M Budget. The District

continues to evaluate strategies to increase the current level of sales to address production levels. Other

District revenues, including Interest Income and Other Income, collectively decrease approximately $389,000.

The District administers an additional two cost recovery programs: the Industrial Waste Pretreatment Program

(IWPP) projected at $956,000 and the Household Hazardous Waste Collection Program (HHW) projected at

iii

$1.3 million. In addition to the above mentioned revenue sources, the District returns any available surplus

from prior fiscal years and has available reserves on an as-needed basis. In 2016, the $4.7 million surplus

from the 2014 budget which is applied to the 2016 budget is $747,000 greater than the 2015 budgeted level.

Total expenditures are increasing 1.0 percent, or $864,000, compared to the 2015 Operations & Maintenance

Budget.

In closing, the District’s 2016 budgets continue strong financial management, support operational needs,

provide needed capital improvements, and promote new initiatives. I look forward to working with you and

partners in the region as we move forward protecting water quality together.

Respectfully submitted,

Kevin L. Shafer, P.E.

Executive Director

"When we work together as a Region, we succeed as a Region”

Background, Statistical and Supplemental Information

The Milwaukee Metropolitan Sewerage

District is a state chartered,

governmental agency providing

wastewater services for 28 municipalities

with a population of about 1.1 million

people. The District’s chief

responsibilities are to provide water

reclamation services and to maintain

and improve watercourses for nearly all

of Milwaukee County, Wisconsin, and

portions of municipalities in surrounding

counties. While Milwaukee is the 31st

largest city in the United States, its

regional wastewater system is among

the largest, most sophisticated, and

well run in the country. The District’s

411-square-mile planning area includes

all cities and villages (except the City of

South Milwaukee) within Milwaukee

County and 10 municipalities in the

surrounding counties of Ozaukee,

Washington, Waukesha, and Racine.

About 25 square miles, or six percent of

the District’s planning area, has

combined sewers. Approximately 385

square miles, or 94 percent of the

planning area, is separate sewer area.

A 3,813-mile system of collector sewers

and a 292-mile system of intercepting

and main sewers convey wastewater to

the two District-owned water

reclamation facilities. Additionally, there

are six miles of combined sewers, 23

miles of near surface collector systems,

as well as, 23 miles of Inline Storage that

conveys and stores wastewater for the

region.

Wastewater treatment within the

District’s service area is provided at two

District-owned water reclamation

facilities. One is the Jones Island Water

Reclamation Facility, which began operations in 1925. The other is the South Shore Water Reclamation Facility, which began

operations in 1968. On average, the two water reclamation facilities collect and treat more than 200 million gallons of

wastewater each day, and, with a daily capacity of 600 million gallons, they return clean, clear water to Lake Michigan.

In 1926, Jones Island was the first wastewater facility to recycle biosolids by producing an organic fertilizer known as

Milorganite®

. This commercial fertilizer is sold throughout the United States and Canada for home lawn care as well as for

golf courses, country clubs, and other professional grounds.

The District is the

largest wastewater

treatment system under

private operations in the

United States.

Governance

The District’s governing body is the Milwaukee Metropolitan Sewerage Commission,

which is composed of 11 members. Seven commissioners are appointed by the Mayor

of the City of Milwaukee, and are subject to confirmation by the Common Council.

Four commissioners are appointed by the Intergovernmental Cooperation Council of

elected officials of cities and villages in the District other than the City of Milwaukee.

The Commission establishes and enforces District policies in compliance with statutory

responsibility and directs and controls budgetary, administrative, procedural,

operational and informational support for the District.

The Commission has two standing committees: the Policy, Finance and Personnel Committee and the Operations Committee. In

general, the Policy, Finance and Personnel Committee has jurisdiction over establishment of District policy, financial planning,

budget recommendations, award of contracts not related to conveyance, storage and treatment, reporting and audits,

personnel matters, labor relations, legal matters and legislation, and public information policies. The Operations Committee

has jurisdiction over the operation of the wastewater collection and treatment systems, industrial pretreatment, and contract

and bid awards for the District’s conveyance, storage and treatment projects.

Operations

The District is the largest wastewater treatment system under private operations in the United States. In early 1998, the

District approved a ten-year agreement with United Water Services (UWS) for operating the District’s two water reclamation

facilities, bio-solids management, and field operations. The agreement with UWS saved District ratepayers more than $164

million over the term of the contract. On December 3, 2007, a second ten-year contract was executed with Veolia Water

Milwaukee (VWM) effective March 1, 2008. The VWM contract provides the District with the lowest cost option to maintain,

operate, and manage the District’s water reclamation facilities, collection, and conveyance system.

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Cargil Meat Solutions

Chris Hansen Maple

Jonas Advanced Waste Hi-Mar

Gehl Guernesey Farms Inc.

Wisconsin Paperboard

Milwaukee Water Works

Patrick Cudahy

Malteurop North America

D.R. Diedrich & Co.

MillerCoors

Revenue Collected (in thousands)

Cu

sto

mer

Top Ten Sewer Users in 2014

Funding the Operating Budget

District operating expenses are primarily recovered from District customers through a sewer service charge. T h e sewer service

charge is billed to each municipality within the District’s service area based on waste strength, flow volume, and the number of

connections. The Environmental Protection Agency (EPA) and Wisconsin Department of Natural Resources (DNR) have

approved the District’s user charge system. The following table shows a listing of the ten largest sewer users within the District’s

service area in 2013 by revenue collected.

Source: 2014 Comprehensive Annual Financial Report

.M

20.M

40.M

60.M

80.M

100.M

120.M

140.M

160.M

180.M

1994 2014

To

tal W

astelo

ad

V

olu

mes

1994 to 2014 Changes in Volume of Wasteload Parameters

Billable Flow (1,000 gallons) Biochemical Oxygen Demand (Pounds) Total Suspended Solids (Pounds)

0%

10%

20%

30%

40%

50%

1994 2014

% o

f T

otal W

astelo

ad

V

olu

me

1994 to 2014 Percent Change in Type of Wasteload

Contribution

Residential Non-certified Commercial Certified Industrial Certified Commercial

Wasteloads and the Customer Base

The District calculates user charges based on four billing parameters: flow ($/1,000 gallons), biochemical oxygen demand

(BOD lbs.), total suspended solids (TSS lbs.), and connections to the sewer system. Since 1994, the District has seen an overall

drop in the volume of flow, TSS, and BOD. According to the 2014 Comprehensive Annual Financial Report (CAFR), from 1994 to

2014, the wasteload parameters show a 26 percent decline in flow, a 28 percent decline in BOD, and a 24 percent decline in TSS

among all customers.


The billing parameters for each of the four customer classes: residential, industrial, commercial and non-certified, has continued to

decline over the last two decades. However, among all categories of customers, the sharpest decline in wasteloads has been from

industrial customers.

The proportionate contribution from each of the categories of customers has changed over the last two decades. The contribution

of residential and non-certified commercial has increased whereas industrial and certified commercial wasteload contribution has

diminished. As seen in the chart below, in 2014, only 24 percent of the total wasteload was contributed by industrial customers,

down from 31 percent in 1994. This decrease is attributable not only to a decline in the number of wet industries in the

Milwaukee area, but also to water conservation efforts by all categories of users.


$.M $100.M $200.M $300.M $400.M

Forest County Potawatomi Community

Marcus Corp./Milw. City Center/Pfister

Metropolitan Associates

Wal-Mart/Sam's Club

Mandel Group

BRE Southridge Mall LLC

US Bank Corp.

Northwestern Mutual Life Insurance Co.

Bayshore Town Center LLC

Mayfair Property Inc.

Equalized Value

2014 Top Ten Tax Payers for Milwaukee County

$-

$0.50

$1.00

$1.50

$2.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tax Rate per $1,000 Equalized Value

Funding the Capital Budget

The District finances its capital budget through an ad valorem tax upon the taxable property within the District’s boundary. In

addition to debt service, the tax levy primarily funds acquisition and improvement of land, property or facilities to enhance

sewerage services to the District’s service area.


In general, a tax levy requires a two-thirds vote of all District Commissioners and is uniformly levied based on equalized value.

The following chart shows tax rate per $1,000 equalized property values from 2004 to 2014


If resolutions authorizing full funding of the local share of the District’s Capital Budget are not adopted by the Commission by

October 15 of any year, then the Commission may, by simple majority, raise up to $40 million by direct tax levy in addition to any

amount required to meet the District’s general obligation indebtedness.

Wisconsin statutes authorize the District to finance capital improvements through the issuance of debt including general

obligation bonds or notes, bond anticipation notes, and revenue anticipation notes. Issuance of bonds and notes requires a vote

of two-thirds of all Commissioners. However, a vote of three-fourths of all Commissioners is required for emergency borrowing.

District Performance

In order to ensure the District is meeting its mission

to cost-effectively protect the quality of the region’s water resources, the District measures and monitors

its performance in the percent of wastewater that is

captured and treated. The percent capture measures

how much wastewater the District captures and treats

by year, versus the amount that the District releases

from its sewers to area waterways untreated during

heavy rain storms to prevent basement backups. The

table to the right shows the District’s past performance in capturing and treating wastewater.

In 2014, the District captured and

treated 99.5% of wastewater

before returning it to the waterways.

Year

Percent captured

and treated

2014 99.50%

2013 98.50%

2012 99.90%

2011 99.50%

2010 96.20%

2009 98.30%

2008 95.10%

2007 99.20%

2006 99.70%

2005 99.70%

Other Statistical Information

The District annually evaluates local and national economic trends including price indices, property values, unemployment

rates, personal income, and industrial growth rates. The economic trends help the District determine what a feasible user

charge rate is for its customers and in turn, future revenue and expenditures.

Price Indices

Consumer Price Index

The District uses price indices to establish or

benchmark annual contractual rate increases for

some multi-year contracts. The Consumer Price

Index (CPI), measures the change in the cost of a

bundle of goods and services paid by consumers.

In 2014, the national CPI increased 1.6 percent

over 2013, and in Milwaukee CPI increased 1.2

percent. National CPI for the first half of 2015 is -0.2 percent. The Milwaukee - Racine CPI for the first half of 2015 is -0.7

percent. Both the national and the state economy show signs of improvement through improved consumer spending, a

recovering housing sector, and healthy exports growth. Global Insight expects the CPI to remain nearly flat in 2015, before

increasing at a 2.3 percent pace in 2016 and 2.4 percent in 2017.

Construction Cost Index and Building Cost Index

The District also uses construction price

indices to plan its capital expenditures.

The Engineering News Record (ENR) is a

magazine that publishes cost data for 20

major U.S. cities. The Construction Cost

Index (CCI) and the Building Cost Index

(BCI) measure the change in construction

costs. Both indices have a materials and

labor component. The CCI can be used

where labor costs are in high proportion of total costs, whereas the BCI is useful for structures. The District uses the cost index

data for both the City of Chicago and the City of Minneapolis when forecasting its capital budget.

Property Values

Property values are one of the region’s most critical indicators of economic health. According to The PNC Financial Services

Group, Milwaukee has a stable and improving housing market and existing home prices are growing at a pace similar to the

national average at the end of the first half of 2015. Home values remain below the pre-recession levels, but are stabilizing.

Year US Milwaukee-Racine

2014-2015 (1st

half) -0.2% -0.7%

2013-2014 1.6% 1.2%

Source: United States Department of Labor, Bureau of Labor Statistics

Chicago Minneapolis Average

CCI BCI CCI BCI CCI

2014 5.84% 4.09% 8.28% 1.53% 2.71%

2013 0.34% 1.24% 0.67% 3.64% 3.87%

2012 2.77% 0.70% 5.10% 0.85% 3.80%

-6%

-1%

4%

9%

14%

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% C

han

ge in

Eq

ualized

V

alu

e

To

tal Eq

ualized

V

alu

e (in

m

illio

ns)

Equalized Value and Percent Change

District Non-Member District % Change Non-Member % Change

The District levies taxes on households based on equalized property values to fund its capital projects. Equalized values

are calculated annually to ensure statewide fairness and equity in distributions based on property values. In 2016, the

total equalized values in the District’s service area are estimated to increase approximately 0.74 percent for member

communities and increase 2.85 percent for non-member communities.

Unemployment Rate

Wisconsin’s slow economic recovery continues to

impact District constituents. The unemployment

rate in the Milwaukee-Waukesha-West Allis

metropolitan statistical area remains higher than

the state and national rate. The PNC Financial

Services Group projects a decrease in the

unemployment rate in both the US and the

Milwaukee area in 2016.

Personal Income

Personal income is the total income of all persons from all sources. The following table shows annual changes in personal income

for the United States, Wisconsin, and the Milwaukee Area.

According to the US Bureau of Economic Analysis,

earnings increased 1.3 percent in the first quarter of

2015. Global Insight expects personal income growth to

accelerate to 5.0 percent in 2016 and 5.7 percent in

2017.

Annual Unemployment Rate

Year US WI Milwaukee-Waukesha-

West Allis MSA

2015 5.3% 4.4% 5.5%

2014 5.8% 5.6% 5.4%

2013 7.4% 6.8% 6.5%

Source: For national data: U.S. Bureau of Labor Statistics (June 2015). For Wisconsin and

Milwaukee-Waukesha-West Allis MSA data: U.S. Bureau of Labor Statistics (July 2015).

Personal Income Percent Change (Annual)

Year US WI Milwaukee-Waukesha-West

Allis

2015 1.3%

2014 3.8% 3.1% 3.3%

2013 3.1% 2.7% 2.5%

Source: US Bureau of Economic Analysis.

Financial Planning

Just as strategic planning identifies objectives and strategies, financial planning identifies

financing scenarios and alternatives for the strategic programs and other action items. A

long-term forecast is prepared for both the Operations and Maintenance (O&M) and the

Capital Budgets.

The Budgeting Process

First, the Budget staff begin financial planning by developing preliminary scenarios for anticipated revenues and expenditures

and make a recommendation to the Executive Director regarding funds that will be available in the upcoming year for

expenditures funded through the O&M Budget. At the same time, projections of capital spending and new capital project

requests are identified by the requesting divisions. These capital expenditures are incorporated into a similar process to ensure

that priorities are identified and financial goals are achieved. Both the O&M and Capital budgets are analyzed over the

summer, and proposed budgets are developed for the Executive Director to present to the Commission for adoption.

Requested amendments to the proposed documents are reviewed and incorporated if the Commission approves them. The

budgets and tax levy are adopted in October or November. The user charges are adopted in November. The following

graphic depicts the District’s budget planning process and shows the linkage between strategic planning and financial

planning.

Jan-Mar Apr-June June-Aug Aug-Sept Oct-Nov

District mission

Statement reviewed

District-wide objectives and

strategies reviewed and

revised, if necessary

Division goals, objectives,

strategies, and performance

measures updated to

reflect organizational

changes in strategies and

challenges

1

2

3

Division

Budget materials distributed

4

Budget staff meet with

Divisions to aid in budget

preparation

Divisions submit budget requests to Budget staff

Budget staff

analyze budget submissions from

Divisions

Are budget

requests complete

; issues resolved?

Budget staff develops

proposed O&M and Capital

Budget

Budget staff present proposed

budget to the Executive Director & Commissioners

O&M and Capital Budgets and Tax Levy adopted by the Commission

meeting

Are Executive Director &

Commission issues

addressed?

9 Yes

Yes

Budget presented at public input

meetings

8

User Charge Rates

approved

5

6

7

No No

11

12

13

14

10

Budget Review & Adoption Calendar

DATE TIME ACTIVITY

Tuesday,

April 28, 2015

11:00 a.m. Budget Kick-Off

Friday,

May 22, 2015 5:00 p.m. Budget Requests Due

Throughout May

and June

Staff analyze requests and begin to

develop long-range financing plan and

forecast

Monday,

June 22, 2015 9:00 a.m.

Capital and Operations & Maintenance

Budget update to Commission

Monday,

July 6, 2015 9:00 a.m.

Capital and Operations & Maintenance

Budget update to Commission

Friday,

September 4, 2015 9:00 a.m. Distribute Budget to Commissioners

Monday,

September 28, 2015 6:00 p.m. Public Hearing on Budgets

Monday,

October 5, 2015 5:00 p.m. Budget Amendments Due

Monday,

October 12, 2015 8:30 a.m. Public Hearing on Budgets

Monday,

October 26, 2015 8:30 a.m.

Commission Adopts Budgets

Tax Levy Adopted

To Be Determined 1:00 p.m. User Charge Ad Hoc Committee meets

Monday,

November 23, 2015 8:30 a.m. User Charge Billing Rates Set

The District’s Financial Performance Credit rating agencies repeatedly award high ratings to the District. Such highly acclaimed financial performance is the result

of developing and adhering to financial policies geared toward ensuring the District’s continued financial strength. Each bond

rating agency has published guidelines and examples of sound financial practices normally associated with strong credit quality.

One example of such a list is the Standard and Poor’s Top 10 Management Characteristics. The table below demonstrates the

District’s achievement of these standards.

Top Ten Management Characteristics District Performance

1 An established rainy day/budget stabilization reserve. 9

The District maintains two reserve funds: the User Charge

Stabilization Fund and the Equipment Replacement Fund

2

Regular economic and revenue reviews to identify

shortfalls early. 9

x Cost center managers review monthly variance reports

x Quarterly variance reviews are prepared and discussed for

both the O&M and Capital Budgets

x Quarterly financial statements are prepared and distributed

3

Prioritized spending plans and established

contingency plans for operating budgets. 9

x Annual budget process prioritizes needs.

x Annual operating contingency established through the

Unallocated Reserve.

4

A formalized capital improvement plan in order to

assess future infrastructure requirements. 9

x Annual budget includes a six-year capital improvement

program, including a long-range financing plan.

5

Long-term planning for all liabilities of a government,

including pension obligations, other post-employment

benefits and other contingent obligations would be

optimal and allow for assessment of future budgetary

risks.

9

x Financial statements are presented on the accrual basis of

accounting.

x Expenses are recorded when liabilities are incurred.

x Since 1993, the District has recorded and disclosed its

unfunded obligations for retiree health and life insurance.

6

A debt affordability model in place to evaluate future

debt profile. 9

x The District’s intent is to keep outstanding debt to no more than 2.5 percent of its equalized property value. The 2.5

percent limit is half of the amount allowed by Wisconsin Law.

x No more than 15 percent of its outstanding general obligation

bonds are in variable rate form.

x Advance refunding for economic savings is undertaken only

when net present value savings of at least two percent of

refunded debt can be achieved.

7 A pay-as-you-go financing strategy as part of the

operating and capital budget. 9

x Capital Budget complies with a 25 percent cash financing

objective. x The District has never issued debt to fund its O&M

expenditures.

8

A multiyear financial plan in place that considers the

affordability of actions or plans before they are part

of the annual budget.

9

x The Capital Budget includes a Long-Range Financing Plan. x Budget staff prepare a six-year forecast of revenues and

expenditures for internal decision making.

9 Effective management and information systems. 9

x The District uses an integrated core financials management

system and other program-specific systems that capture and

report critical operating information.

10

A well-defined and coordinated economic

development strategy. 9

x The District regularly communicates with member

communities and the top 20 industrial users regarding the

District’s financial decisions and the impact on District customers.

x The District’s user charge and tax rates are competitive on a national basis.

x The District fully supports its Small, Women-, and Minority

Owned Business Enterprise procurement policy.

x The District provides and Workforce and Business

Development Resource Program.

x The District uses a local workforce preference policy whenever

applicable.

District Fund Structure

The District prepares its financial statements and budgets on an enterprise fund basis. The District’s operating expenses are

funded within the Operations and Maintenance (O&M) Budget, and the long-term capital expenditures are funded within the

Capital Budget. The funding sources for the two budgets are different.

The District’s enterprise fund is used to account for operations that are 1) financed and operated in a manner similar to a

private business enterprise – where costs of providing public goods or services on a continuing basis are financed or recovered

primarily through user charges and cost recovery programs, and 2) for which the District relies on taxes, non-member billings,

federal and state aid, loans, and District-issued bonds which support the capital improvements program.

The District, in accordance with Generally Accepted Accounting Principles (GAAP), reports categories of net position that

indicates the accessibility of funds. As it does not use governmental funds, there is no fund balance as this term does not

apply to enterprise funds. The equity of full-accrual statements, as an enterprise fund, is referred to as net assets, or per GASB

63, Net Position.

The District’s net position consists of restricted and unrestricted balances. Restricted balances consist of constraints placed on

net position that are legally restricted by outside parties or by law through constitutional provisions or enabling legislation.

Unrestricted balances consist of net position that does not meet the definition of restricted or net investment in capital assets.

As of December 31, 2014, per the District’s most recent audited Comprehensive Annual Financial Report, the District has a total

net position for its enterprise fund of $2.6 billion. Of this amount:

• $2.5 billion is investment in capital assets net of accumulated depreciation and reduced by outstanding debt that is

attributable to the acquisition, construction, and improvement of those assets; debt related to the unspent proceeds or

other restricted cash and investments is excluded from the determination.

• $34.5 million is restricted for capital projects and programs (see capital budget for further explanation on capital programs);

• $25.5 million is restricted for debt service sinking funds, and

• $14.4 million is restricted for qualified equipment replacement and is required to be maintained by federal and state

regulatory agencies.

• ($4.4) million is in unrestricted. The negative amount for unrestricted is the result of the District electing to fund its long-

term liability related to post-retirement health and life insurance as it comes due rather than when it is incurred. The total

long-term liability related to this benefit was $41.9 million at December 31, 2014 with an unfunded actuarial accrued

liability of $178.6 million, amortized as a level dollar amount and over 20 years.

* Milorganite®

revenue is reported net of discounts, rebates, fees, discount, freight, etc.

** Net operating expenses are reported after charges to the capital budget have been subtracted.

Capital Expenditures Water Reclamation Facilities

Conveyance System

Watercourse & Flood Management Projects

Facilities Planning and Other Projects

Net Debt Service

Operating Expenses

Net Division Expenses**

Net Fringe Benefit Expenses**

Capital Funding

Tax Levy

Non-Member Billings

State Loans

Federal and State Aid

Interest Income

District Issued General Obligation Bonds

Operating Funding User Charges

Industrial Waste Pretreatment Program

Household Hazardous Waste Program

Milorganite®

Sales (Net)*

Interest Income

Other Income

Enterprise Fund Accounting for Budgets

Operations & Maintenance Budget Capital Budget

Operations and Maintenance & Capital Budgeting

Item Operations and Maintenance Capital

Sources of Funds

User Charges, Net Revenue from

Milorganite®

sales, Interest Income, Surplus

Applied, User Charge Stabilization Fund

Applied, and other operating income.

Tax Levy and Nonmember Billings, Loans and

Bonds, Federal and State Aid, Interest and

Other, Uses of Funds on Hand, and all other

capital income.

Use of Funds Net Division Expenses and All Other

Operating Expenses. Total Project Expenses and Net Debt Service.

Budgetary Basis of

Accounting

Actual revenues and expenses are recorded

on a full accrual basis in accordance with

Generally Accepted Accounting Principles.

Revenues and expenses are budgeted on a

full accrual basis, with the exception of

capital outlays. These are budgeted as an

expense in the year incurred, but

capitalized and depreciated for financial

reporting purposes.

For financial reporting, actual revenues and

expenses are recorded on a full accrual basis

in accordance with Generally Accepted

Accounting Principles. Revenues are

budgeted on a cash basis. Because the

Capital Budget serves as a financing plan, it

is important to plan when revenues are

received rather than when they are earned.

Basis for Expenses

Costs of controlling, operating, managing

or maintaining the sewerage system. Costs

also include replacement costs of

obtaining and installing equipment,

accessories or appurtenances that are

necessary during the service life of the

District’s sewerage system to maintain the capacity and performance for which the

sewerage system was designed and

constructed.

Costs of acquiring, purchasing, adding to,

leasing, planning, designing, construction,

extending and improving all or any part of a

sewerage system and of paying principal,

interest or premiums on any indebtedness

incurred for these purposes.

Project Costs Less than $25,000 Greater than or equal to $25,000

Service Life Less than 10 years.

Ten or more years (must represent an

identifiable addition to facilities or extend the

service life of existing facilities).

Equipment

Replacement

Cost less than $25,000 or service life equal to

or less than 20 years.

Cost greater than or equal to $25,000 and a

service life greater than 20 years.

Green

Infrastructure

The District does not need a conservation

easement for the property on which the

project will be installed. The cost is less than

$25,000.

The District has a minimum 10-year

conservation easement on the property on

which the project will be installed. The cost is

greater than or equal to $25,000.

2016 Combined Summary of Revenues and Expenditures

(Dollars in Thousands)

2014 Actual

2015

Adopted

Budget

2015

Amended

Budget

2015

Estimate

2016

Proposed

Budget

Change from

2015 Adopted

Budget

% Change

from 2015

Adopted

Operations & Maintenance

User Charge Billings $67,852 $71,490 $71,490 $71,490 $73,280 $1,790 2.5%

Milorganite® Sales (Net) 7,993 7,775 7,775 7,895 7,830 55 0.7%

All Other Operating Income 3,161 3,718 3,718 3,718 3,289 (429) -11.5%

User Charge Stabilization Fund Applied (or

Contribution) (1,000) 1,000 1,000 1,000 1,000 0 0.0%

Equipment Replacement Fund Applied (or Contribution) 0 1,000 1,000 0 (300) (1,300) -130.0%

Surplus Applied 7,758 3,919 3,919 3,919 4,666 747 19.1%

Total Operations & Maintenance Funding 85,765 88,902 88,902 88,021 89,765 864 1.0%

Carryover Funds from previous year* 1,500 0 0 0 0 0 0.0%

Total Amended Operations & Maintenance Funding 87,265 88,902 88,902 88,021 89,765 864 1.0%

Capital

Tax Levy 91,222 93,639 93,639 93,639 95,980 2,341 2.5%

Non-member Billings 27,095 30,222 30,222 29,795 30,550 328 1.1%

Federal and State Aid 4,174 3,612 3,612 2,248 2,154 (1,458) -40.4%

State Loans 37,193 22,100 22,100 15,785 23,600 1,500 6.8%

Interest and Other Income 5,183 3,680 3,680 1,399 4,991 1,311 35.6%

District Bonds 0 100,000 100,000 100,000 0 (100,000) -100.0%

Bond Premium 0 0 0 7,449 0 0 0.0%

Use of (Additions to) Available Funds 20,538 (38,478) (38,478) (40,500) 58,990 97,468 -253.3%

Total Capital Funding 185,405 214,775 214,775 209,815 216,265 1,490 0.7%

Total Funding $272,670 $303,676 $303,676 $297,836 $306,030 $2,354 0.8% Expenditures

Operations & Maintenance

Net Division Expenditures $74,930 $78,446 $78,594 $77,360 $78,955 $509 0.6%

Net Fringe Benefit Expenditures 8,105 8,288 8,288 7,628 8,701 413 5.0%

Unallocated Reserve 0 2,168 2,020 0 2,110 (59) -2.7%

Total Operations & Maintenance Expenditures $81,487 $88,902 $88,902 $84,989 $89,765 $864 1.0%

Capital

Water Reclamation Facilities 21,560 29,651 29,651 33,331 30,175 524 1.8%

Conveyance Facilities 20,221 13,997 13,997 11,961 10,615 (3,382) -24.2%

Watercourse & Flood Mgmt Projects 11,496 20,816 20,816 18,263 24,493 3,677 17.7%

Other Projects & Programs 14,792 28,950 28,950 24,790 24,288 (4,662) -16.1%

Debt Service 114,998 121,360 121,360 121,470 126,694 5,334 4.4%

Total Capital Expenditures 183,066 214,775 214,775 209,815 216,265 1,490 0.7%

Total Expenditures $264,553 $303,676 $303,676 $294,804 $306,030 $2,354 0.8%

*Actual and estimated expenditures from carryovers are included in the Division expenditures

Note, totals may not appear to add due to rounding.

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Tax Levy &

Nonmember

Charges

All Other Income User Charge Billings State Loans Bonds Issued,

Federal & State Aid

2016 Combined Summary of Revenue

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Net Debt

Service

Net

Divisional

Expenditures

Water

Reclamation

Facilities

Watercourse

& Flood

Mgmt

Projects

Other

Projects &

Programs

Conveyance

Facilities

Net Fringe

Benefit

Expenditures

Unallocated

Reserve

2016 Combined Summary of Expenditures

The District’s 2016 combined budget totals approximately $306.0 million. As seen in the following chart, the primary

sources of funds in the 2016 combined budgets are the tax levy, non-member billings, State Clean Water Fund

program loans, and bonds.

On the expenditure side, the Capital Budget again comprises the majority of the 2016 combined budget with net debt service,

water reclamation facilities, conveyance, watercourse and flood management, and other projects project expenditures totaling

70.1 percent. The net divisional expenditures, which include operations of the District facilities, are 26.3 percent of the

combined expenditures.

P A R T N E R S F O R A

C L E A N E R E N V I R O N M E N T

MI

LW

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ME

TR

OP

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AN

SE

WE

RA

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2 0 1 6 — 2 0 1 8 S T R A T E G I C

P L A N

The Milwaukee Metropolitan Sewerage District’s 2016-2018 Strategic Plan creates a CLEAR path to cleaner waters. The continuous improvement methods and tools included in the 2016-2018 CLEAR plan help position the District to meet any future challenges and opportunities, stay true to the 2035 Vision, and provide customers with an innovative environmental and economic leader in the region. Furthermore, it ensures that the District is prepared to enhance the quality of life in the region and protect our water resources for years to come.

The Milwaukee Metropolitan Sewerage District (MMSD or the District) is recognized

internationally as a leader in the municipal sewerage industry because of the District’s commitment to protecting local watersheds as well as the District’s innovative solutions to storm water management. The District has earned its reputation through

effective planning, construction and operation of the District’s systems. Beginning with the creation of Milorganite® in 1926, continuing through to MMSD’s current Green Infrastructure initiative FreshCoast 740, MMSD continues to lead the industry

in the development and implementation of innovative watershed protections. The

District’s success in the technical abilities to control flooding and treat wastewater, coupled with the Milwaukee region’s commitment to becoming an international hub for water technology, provides a unique opportunity to be a tremendous asset to the

communities the District serves.

MMSD will build on our technical expertise to continue to achieve permit compliance

through our 2050 Facilities Plan. We recognize that above all else, the continued

planning, construction and operation of our systems ensures compliance with our

WPDES permit and remains the District’s most important function.

The following Strategic Plan, which includes reporting for current planning efforts like

the 2050 Facilities Plan, will provide a CLEAR path for MMSD. Completion of the

action steps included in the CLEAR plan will ensure permit compliance, enhance the

District’s efficiencies and increase the beneficial services the District offers to the region. Additionally, the CLEAR plan allows MMSD to report on the strides made

towards achieving our 2035 Vision of a healthier region and a cleaner Lake Michigan.

M I S S I O N

T O C O S T

E F F E C T I V E L Y

P R O T E C T T H E

R E G I O N ’ S W A T E R

R E S O U R C E S .

M I S S I O N & V I S I O N

This mission guides the core activities at the District,

specifically water reclamation and flood management.

The District operates two water reclamation facilities

through a private contract operator that serve 411

square miles and 1.1 million people in 28 communities.

Additionally, the District manages several programs

designed to mitigate local waterway pollution and

improve water quality such as the Industrial Waste

Pretreatment Program and the Household Hazardous

Waste Collection Program. The District routinely

collects data and monitors its activities to ensure

efficient, sustainable operations. As a steward of public

funds and a major player in ensuring the health of the

area’s waterways, the District values accountability and uses the objectives laid out in the Strategic Plan to

direct individual and division activities.

MMSD envisions a healthier Milwaukee region and a cleaner Lake Michigan accomplished through its leadership in attaining zero overflows, zero basement backups, and improved storm water management. MMSD will be a model in its management of climate change impacts on wet weather and its focus on energy efficient and sustainable operations.

The 2035 Vision, adopted in 2010, has two elements: integrated water-shed management and

climate change adaptation with an emphasis on energy efficiency. Using the guiding principles of

the sustainable bottom line and water quality leadership and collaboration, the District has set

forth this vision:

The 2035 Vision contains strategic goals and objectives. The goals focus on using green

infrastructure, reducing the District’s carbon footprint by 90 percent from its 2005 baseline, and working with local organizations, nonprofits, and universities to further water industry knowledge

and environmental stewardship. The 2016-2018 Strategic Plan helps direct District efforts to

accomplish the 2035 Vision and builds a foundation for future efforts to meet the organization’s mission.

Economic Development

The Milwaukee region is experiencing a renaissance of its industrial heritage. With numerous initiatives underway

to attract wet industries, emerging companies in water and energy technologies, food and beverage clusters and

green infrastructure, the Milwaukee Area is a vastly changing landscape at a dizzying pace. For the work to

continue, it is imperative that the region continues to develop a skilled and knowledgeable workforce, a thriving

entrepreneurial ecosystem, engaged community and high quality infrastructure. Beyond the infrastructure we build

and maintain to protect the regions water resources, the District holds a unique role in the region’s economic development through our SWMBE and WDTP programs and the support of M7’s regional economic development plan. The 2016-2018 Strategic Plan includes the evaluation of our current programs, helps create channels to

engage business leaders, emerging companies, and the skilled workers required for the region to meet its goals.

Goals �� Be proactive in providing Milwaukee-area economic development leaders information that helps to support

economic growth and development

�� Ensure the local workforce is trained to implement future District Capital Improvements Projects.

Using the acronym CLEAR, which stands for Collaborative, Lean and Efficient, Accountable, and Resilient,

the 2016-2018 Strategic Plan will continue the District on the path towards achieving the 2035 Vision. The

new CLEAR plan will ensure the District is true to its mission and help highlight MMSD as an industry

leader.

Outreach

The District is a multi-faceted organization, with many operations, programs, services, and goals. Together,

these facets of the organization combine to support one common goal: to improve water quality and protect

Lake Michigan. The District relies heavily on community members to accomplish our overarching goal, making

the community outreach an essential function. Moving forward, it is imperative that the District help the

communities we serve understand the challenges our waterways face and the District’s role in addressing those challenges.

Goals �� Develop clear and consistent messages

�� Identify target audiences and best practices for engagement

�� Evaluate and incorporate feedback from outreach activities

Collaborative

Mobilizing significant regional resources requires effective partnerships.

Improving valued relationships with government agencies and the

academic universities and partnering with businesses and community

organizations to facilitate the achievement of District objectives and

addressing local needs is a critical strategy. The District will focus its

efforts on building a unified understanding of the District’s mission, creating visibility, and developing partnerships. The collaboration strategy

is intended to ensure the region is building relationships with its partners,

providing timely and accurate information to constituents, maintaining a

clear and consistent message, and increasing awareness and visibility of

who we are, what we do, and how it benefits the region as a whole.

Systems Thinking

Systems thinking is a key tenet of lean government. It is a holistic approach to analysis that focuses on

interrelationships, systems over time, and evaluating and incorporating feedback. The District can use systems

thinking for two critical areas of its operations: Information Technology and Milorganite® sales.

Information Technology

Systems thinking will benefit information technology strategies as the relationship with users and the rapid pace of

technology changes could become a harmonious one. MMSD relies on the use of information technology in every

aspect of its operations. This heavy reliance on so expensive of an infrastructure and on such a changing realm

equates to meticulous planning and forward thinking. As the scope of District functions have expanded from simple

water reclamation to include new environmental initiatives, so too have the IT systems been asked to expand to

support these new functions. The District now creates new data at a fast pace which places strain on our server

storage space and outages and security pose new threats. Every day new opportunities arise with advanced software

solutions on the market but with these come a myriad of issues including ongoing maintenance, costly upgrades,

and permissions barriers. Prospects must be carefully scrutinized and weighed to ensure adequate staff, funds, and

storage space are available to support both current existing software and any new additions. The 2016-2018

Strategic Plan includes the evaluation of life cycle software management, a multi-year plan to address software and

hardware capabilities and needs, and the development of policies and procedures. All of these will aid in ensuring

the District has a sustainable and forward thinking IT department it can depend on.

Goals �� Develop a procedure that addresses each aspect of a new acquisition and prioritizes with user needs and budget

constraints

�� Create a strategy for current and future storage allocation to address handling growing data sets

�� Create a procedure and schedule for the total life cycle management of software and hardware within the District �� Evaluate and develop plan for end user equipment and hardware

Lean government strives for continuous improvement and reducing waste. As a

governmental agency, MMSD prides itself on providing the most efficient service

possible to the communities we serve. In order to be good stewards, the District

is constantly looking for innovative solutions to provide efficient, value-added

services at the lowest cost possible. We continuously examine what, why and

how we work as a way to reduce waste and unnecessary procedures. As part of

the Strategic Plan the District will launch initiatives to document processes,

reduce redundancies and enhance operating and maintenance cost offsets

provided by Milorganite®

. Ultimately, our lean and efficient strategy will ensure

the District remains an industry leader both in effective services and financial

stability.

Lean &

Efficient

Milorganite®

Systems thinking will benefit Milorganite® sales as understanding trends over time, customer feedback and

relationships, and evolving distribution channels are critical to maintaining and improving sales strategy and

performance. Milorganite® sales has a significant impact on the District’s ability to minimize user charge billings, so effective strategy is essential. MMSD has always been lauded for its ability to turn challenges into opportunities.

One such instance is the production of the fertilizer Milorganite® from the microscopic organisms that clean

wastewater. Since its development in the 1920s MMSD stood out as a leader in sustainability by reusing these

microbes instead of landfilling them. For 85 years the District has relied upon the revenue gained from the sale of

Milorganite® to aid in keeping our user charges rates low. The impact of Milorganite® sales is significant to the

District’s O&M Budget. As a niche in a commodity market, effective strategy is important. There are many opportunities for growth in the sale of the product and through the initiatives in the 2016-2018 Strategic Plan the

District plans to capitalize on these opportunities.

Goals �� Expand in current markets and break into new ones

�� Create communications plan that strategizes the message

�� Ensure the District is proactive and ready for any regulatory issues regarding Milorganite®

�� Explore all avenues available and the potential outcomes of each regarding to changes in product specifications

Lean &

Efficient

Reporting Streamlining

The District aims to understand the real needs of its stakeholders and customers in order to eliminate non-value-

added activities, and better deploy human and financial resources to higher-priority activities. The District’s goal is to review and right-size the number of reports it generates and presents each year. As part of the lean and

efficient strategy, the District will work to streamline the required reports, ensuring compliance with administrative

requirements and reducing the redundancies in information and resources.

Goals �� Publish meaningful and useful reports and information

Process Improvements

The District is at the pinnacle of change as a significant portion of its workforce has begun to retire. This creates an

opportunity to review organizational processes and seek efficiencies. Identifying redundancies, inefficiencies or

obstacles, and using problem solving techniques and data based decision making will be essential as we move

forward.

Capital Budgeting Estimating

Each year the Budget Office staff and the Technical Services Division staff review new and existing capital projects.

Requests are prioritized and adjustments made to balance infrastructure needs with debt obligations and tax rates.

The more accurate the budget requests are to actual expenditures the more accurate future financial plans can be.

The District’s efforts in past financial planning have helped the District remain on solid financial footing through times of economic uncertainty. In order to continue to meet the District’s goals, the District will rely on sound financial planning to ensure that the District continues to enjoy high debt ratings and has the resources necessary

to build the infrastructure required for efficient operations. The initiative will evaluate whether there are

opportunities to improve this process.

Goals �� Efficiently allocate resources and prioritize projects

Lean &

Efficient

Accountable

Open Data

The District constantly generates a vast amount of data. More and more governmental entities are providing “open data” or publicly available data structured in a way that enables the data to be fully discoverable and usable by end users. This shift to a more transparent government has risen to a level that impacts all branches from federal to local.

Recognizing the growing trend in information sharing and the potential for the District to be more transparent and

accountable, the 2016-2018 Strategic Plan includes a review of the potential for the District to provide more data

resources to the public. Our goal in reviewing open data policies and trends is to identify useful information and

determine cost effective methods in providing the data to the public.

Goals �� Improve accountability and transparency District-wide, as possible

Performance Metrics

Performance reporting helps the District stay focused on the quality of services and the benefits those services

provide to the region. Monitoring and measuring performance also improves management practices and the

public’s confidence in the District’s ability to achieve high quality program and operating results. For the past several years, the District has maintained a performance dashboard on the intranet, which includes program

performance, strategic goals, objectives, and progress towards meeting those goals, and division director annual

accountabilities and performance. With this Strategic Plan process, an improved performance management

system that encompasses District planning and core processes will be created. Going forward, instead of

including information in the dashboard because someone thought it might be interesting, the District aims to first

ask, “Will the information drive productive action?”

Goals

�� Meaningful and timely information from which to extract trends and improve performance

Resilient

Workforce

There are many internal and external challenges facing public sector employers including: increasing and changing

needs for services from the public; new and changing technology; an aging workforce; significant limits on financial

resources; new and changing job skills and knowledge requirements; and greater demands for accountability and

transparency. A high-performing, committed and engaged workforce has a direct positive impact on the quality of

services delivered and the perception of public trust towards public service. Focused investment in our employees

will help ensure the effective, efficient, and high quality delivery of services and programs to the public. With

changing workforce demographics, it is imperative that the District stay current and flexible in its workforce policies

to attract and retain the best and the brightest. Over 30 percent of District employees are eligible for retirement in

the next three years. As such, the District must be prepared to fill the positions and continue to deliver high quality

services.

Goals �� Attract and retain high-quality employees

�� Foster seamless turnovers and transitions

�� Promote District values

Budgets

The District prides itself on strong and prudent financial management. Currently the District develops long-range

financial plans for both its capital and O&M budgets. The current capital long-range plan is based primarily on

the District’s 2020 Facilities Plan. As the 2050 Facilities Plan is developed, the District will need to put forth a financing plan that captures new requirements plus affordability. The current O&M forecast is limited by the term

of the Veolia Water (VW) Milwaukee operating contract, which is over fifty percent of expenditures. As the VW

contract expires in 2018, the District needs to prepare strategies to address new expenditure needs for a new

decade.

Goals

�� Structural budget balance for 2018-2028

�� Continue achievement of District’s Long Range Financing Plan goals while incorporating 2050 recommendations

�� Minimize user charge billings and levy volatility

2016 Operations & Maintenance Budget

The Operations & Maintenance (O&M) Budget provides a framework to implement and accomplish District priorities that support its mission of environmental stewardship and sustainability. The majority of the Operations & Maintenance Budget is targeted towards operations of wastewater reclamation facilities and controlling point and non-point sources of pollution. This budget enables the District to continue its high standard of performance in protecting water resources at levels higher than permit requirements.

REVENUES In the 2016 Proposed O&M Budget, the District anticipates $84.4 million in sources of funds. This includes user charge billings, net revenue from Milorganite® fertilizer sales, interest and other income, two cost recovery programs, the return of a 2014 surplus, and the use of reserves. The primary source of revenue for O&M expenditures is the user charge billings. In 2016, user charge billings are budgeted at $73.3 million, a 2.5 percent increase from the 2015 budget.

In the 2016 O&M Budget, total revenue increased $863,675 or 1.0 percent from the 2015 budget.

For additional information on the District’s revenues and reserves, refer to the Sources of Funds section.

EXPENDITURES A majority of the District’s expenditures are related to the Veolia Water Milwaukee (VWM) contract for operations and maintenance of District water reclamation facilities and conveyance system. The VWM operations and maintenance fee comprises approximately 49.5 percent of the 2016 Proposed O&M Budget. In addition to the contract cost, the District is also responsible for 75 percent of all energy costs under this contract. Combined with the utility fee paid to VWM, energy expenditures are approximately 13.7 percent of the O&M Budget. For further detail on the division’s expenditures, refer to the division and Other Expenditures sections.

Capital Expenditures Impact on the Operating Budget

The District undertakes life-cycle costing in the analysis of capital projects. This includes identifying, when possible, what the change in O&M costs will be following the completion of each capital project, and carefully considering those costs in deciding which projects move forward in the Capital Improvement Program (CIP). These analyses are useful not only for decision-making to select the lowest life-cycle cost option among competing alternatives, but also for properly forecasting expenditure changes to be included in future O&M budgets. The majority of the District’s CIP is focused on the replacement, rehabilitation or improvement of existing water reclamation and conveyance infrastructure rather than the construction of new facilities to expand capacity. As such, it is often the case that replacements do not result in changes from the current level of budgeted O&M expenditures. In project summaries, the O&M impact will be stated as “no significant impact”. When the District CIP undertakes new initiatives or new technologies, it is more likely to result in new O&M expenditures or incremental changes to ongoing O&M expenditures. In CIP project summaries, the O&M impact section will describe the changed condition, start date, and annual budget impact. In addition, the District’s capital budget includes capital programs which support the District’s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. In such cases, the District’s capital expenditures would generally not result in changes to the current level of O&M expenditures as the resulting improvements are not operated or maintained by the District but instead help to preserve the capacity and long-term cost-effective operation of the District’s System. O&M expenditures resulting from the completion of capital projects may be budgeted in expenditures for the Veolia Water Milwaukee contract or in District division budgets.

Guide to the 2016 O&M Budget

Concluding the O&M Summary are a series of charts and graphs providing an overview of the 2016 O&M Budget’s organizational structure and staffing levels, District revenues and expenditures, and division and cost center expenditures. The Sources of Funds section discusses each of the District’s O&M revenues. The Budget describes each revenue source’s historical data, changes in funding levels, and trends that affect the revenue source. The Division Summaries discuss the District’s operating divisions: the Commission, the Office of the Executive Director; Legal Services; Finance Division; Technical Services Division; Planning, Research, & Sustainability Division; Water Quality Protection Division; and the Division of Community Outreach and Business Engagement. These summaries provide the detail of the division’s structure, mission and services, budgeted expenditures, and staffing levels. Any recent accomplishments by the division are also included. The final section, Other Expenditures, provides detailed information about the District’s Fringe Benefits, Division Expense Adjustments, and the Unallocated Reserve.

Commission

Legal Services

Records Management

Technical Services

Engineering Services

Capital Program Support

Office of Contract Compliance

Planning, Research, and Sustainability


Central Laboratory

Industrial Waste, Freshwater Resources &

Conveyance System Monitoring

Finance Community Outreach & Business Engagement

Graphics

Marketing & Milorganite®

Procurement & Supplier

Development

Office of the Executive Director

Executive Director Cost Center

Information Technology Services

Human Resources

Facilities Management

Milwaukee Metropolitan Sewerage District Organizational Chart

Public Information, Intergovernmental

Affairs, and Educational Outreach

27

Summary of Authorized Staffing by Division

Divisions 2014 Budget 2015 Budget 2016

Budget Change from

2015 Commission 0 0 0 0 Office of the Executive Director 5 5 2 (3) Human Resources 4 4 4 0 Information Technology Services 20 20 20 0 Facilities 0 4 3 (1) Executive Director 29 33 29 (4) Legal Services 8 8 8 0 Records 0 4 4 0 Legal Services 8 12 12 0 Finance 16 17 19 2 Finance 16 17 19 2 Office of Contract Compliance 8 8 8 0 Capital Program Support 13 14 42 28 Engineering Services 47 47 22 (25) Technical Services 68 69 72 3 Planning, Research & Sustainability 18 19 19 0 Planning, Research & Sustainability 18 19 19 0 Industrial Waste & Conveyance Monitoring 40 40 38 (2) Central Laboratory 22 22 22 0 Water Quality Protection 62 62 60 (2) Marketing and Milorganite 7 7 6 (1) Graphics 3 2 2 0 Facilities 4 0 0 0 Procurement & Supplier Development 9 9 8 (1) Public Information, Intergovernmental Affairs, and Educational Outreach 0 0 5 5 Records 4 0 0 0 Community Outreach & Business Engagement 27 18 21 3 Total District 228 230 232 2 Total Management 44 44 44 0 Total Non-Represented 78 82 87 5 Total Represented (Bargaining Unit) 106 104 101 (3) Total District 228 230 232 2 Note: Commissioners are not included in this table The District’s current workforce consists of two broad categories of employees: represented, and management and non-represented. All new positions and vacancies are analyzed to ensure need and manage staffing levels.

28

There is a net increase of two position authorizations in the 2016 Budget from the 2015 Budget. Position Changes x To help streamline and coordinate the District’s outreach efforts, three employees moved from the Office of the

Executive Director to the Public Information, Intergovernmental Affairs, and Educational Outreach cost center. x The Facilities cost center eliminated one vacant Facilities Lead position. x In mid-2015, the real estate functions previously budgeted in the Capital Program Support cost center moved to the

Finance division. The Finance Division increased by three positions, one Real Estate Specialist, one new position, Real Estate Generalist, and one Secretary. To offset the increase in position count, the Division eliminated one vacant Account Clerk position.

x The Office of Contract Compliance eliminated one vacant Contract Compliance Administrator – Limited Term Employee position. The cost center also added one authorized but unfunded MCRR Project Engineer position.

x The Capital Program Support cost center added one new Computer Aided Design (CAD) Technician, one new Data Coordinator position, and authorized but unfunded one new Project Engineer position. As part of a District reorganization, the field staff who work on construction and survey projects is budgeted under the Capital Program Support cost center rather than the Engineering Services cost center.

x The Engineering Services cost center added one new Senior Project Manager II – Limited Term Employee position. The cost center also added one authorized but unfunded Project Engineer position.

x The Planning, Research and Sustainability Division funded one previously authorized but unfunded Asset Management Analyst position.

x The Administrative Coordinator - Water Quality Protection/Planning, Research, and Sustainability position authorized and funded in the Industrial Waste, Freshwater Resources, and Conveyance Monitoring cost center is funded in the Planning, Research and Sustainability cost center in the 2016 budget.

x The Industrial Waste, Freshwater Resources, and Conveyance Monitoring cost center eliminated one vacant Sample Boat Operator position.

x The Marketing and Milorganite cost center eliminated one vacant Shipping Clerk position. x The Procurement and Supplier Development cost center eliminated one Administrative Coordinator – Procurement

position and one Buyer/Data Clerk position. The cost center created a second Procurement Specialist position. The cost center also authorized but unfunded one Procurement and Supplier Development Manager position.

x The Educational Outreach Program Coordinator position was retitled Outreach Program Coordinator and moved from the Planning, Research and Sustainability Division to the Public Information, Intergovernmental Affairs, and Educational Outreach cost center.

x The Public Information, Intergovernmental Affairs, and Educational Outreach cost center created a new Outreach Program Coordinator in the 2016 budget.

29

Revenues and Expenditures

2014 Actual

2015 Adopted Budget 2015 Estimate 2016 Budget

Change from 2015

Adopted Budget

% Change from 2015

Adopted Budget

Revenues

User Charge Billings $67,852,354 $71,489,982 $71,489,982 $73,280,017 $1,790,035 2.50%

Milorganite® Sales (Net) 7,993,267 7,775,000 7,894,811 7,830,000 55,000 0.7% Interest Income 236,296 500,000 500,000 250,000 (250,000) -50.0% Other Income 748,170 963,082 963,082 823,998 (139,084) -14.4% Household Hazardous Waste 1,236,353 1,311,054 1,311,054 1,258,892 (52,162) -4.0% Industrial Waste Pretreatment 940,205 943,810 943,810 956,290 12,479 1.3%

Total Operating Revenue 79,006,644 82,982,929 83,102,740 $84,399,197 1,416,268 1.7% Reserves and Surplus

Equipment Replacement Fund Applied (or Contribution) 0 1,000,000 0 (300,000) (1,300,000) - User Charge Stabilization Fund Applied (or Contribution) (1,000,000) 1,000,000 1,000,000 1,000,000 0 0.0% Surplus or Deficit Applied 7,757,896 3,918,593 3,918,593 4,666,000 747,407 19.1% Total Reserves and Surplus 6,757,896 5,918,593 5,918,593 5,366,000 (552,593) -9.3% Total Funding $85,764,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0% Carryover Funds from previous year 1,500,000

Total Amended Funding $87,264,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0% Expenditures

Divisions

Commission 203,746 251,082 231,124 281,582 30,500 12.1%

Office of the Executive Director 6,022,468 7,004,889 6,882,035 5,927,429 (1,077,461) -15.4% Legal Services 1,109,151 1,374,215 1,188,014 1,483,718 109,502 8.0% Finance 1,800,134 1,811,939 1,803,268 2,686,432 874,493 48.3% Technical Services 63,075,678 65,072,358 64,419,541 65,494,669 422,311 0.6% Planning, Research & Sustainability 1,728,443 2,795,738 2,450,768 2,479,944 (315,794) -11.3% Water Quality Protection 5,349,580 5,495,650 5,646,749 5,536,017 40,366 0.7% Community Outreach & Business Development 6,272,928 5,002,935 5,144,432 5,722,259 719,324 14.4% Fringe Benefits 10,994,436 10,994,436 10,994,436 11,947,124 501,939 4.4% Charges to Capital (14,297,348) (13,520,802) (13,771,850) (13,903,707) (382,905) 2.8%

Net Division Expenditures $83,035,193 $86,733,189 $84,988,518 $87,655,466 $922,277 1.1% Unallocated Reserve 0 2,168,330 1,775,260 2,109,731 (58,599) -2.7% Total Expenditures $83,035,193 $88,901,519 $86,763,778 $89,765,197 $863,675 1.0%

30

0.3%

1.2%

1.2%

2.7%

4.3%

6.0%

6.7%

10.0%

67.6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Commission

Legal Services

Planning, Research & Sustainability

Finance


Community Outreach and Business Engagement


Fringe Benefits

Technical Services

2016 Expenditures by Division

The District’s 2016 O&M Budget totals approximately $89.8 million. As seen in the following chart, user charge billings comprise the majority of O&M revenues, followed by net Milorganite® sales, the surplus applied from 2014, and other income. Additional details on the revenues by category may be found in the Sources of Funds section.

On the expenditure side, the Technical Services Division accounts for 68 percent of the 2016 O&M Budget. The Technical Services Division includes the Veolia Water Milwaukee contract for operations and maintenance of the District and reclamation facilities.

-0.3%

0.3%

0.9%

1.1%

1.1%

1.4%

5.2%

8.7%

81.6%

-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Equipment Replacement FundApplied

Interest Income

Other Income

Industrial Waste Pretreatment

User Charge Stabilization Fund Applied

Household Hazardous Waste

Surplus Applied

Milorganite® Sales (Net)

User Charge Billings

2016 Operating Revenue by Category

Operations and Maintenance Long-Range Forecast The O&M forecast projects a 2.5 percent increase in User Charge Billings in 2017. The District’s operating contract with Veolia Water Milwaukee expires in 2018. Because a decision on operations pursuant to this contract has not yet been

made, the District does not publish a forecast for 2018 and beyond.

2015 Budget 2015 Estimate 2016 Budget 2017 Forecast

Revenues

User Charge Billings $71,489,982 $71,489,982 $73,280,017 $75,105,985

Milorganite® Sales (Net) 7,775,000 7,894,811 7,830,000 7,830,000

Interest Income 500,000 500,000 250,000 252,500

Other Income 963,082 963,082 823,998 $955,000

Household Hazardous Waste 1,311,054 1,311,054 1,258,892 1,271,481

Industrial Waste Pretreatment 943,810 943,810 956,290 965,853

Total Operating Revenue 82,982,929 83,102,740 $84,399,197 $86,380,791

Reserves and Surplus

Equipment Replacement Fund

Applied (or Contribution) 1,000,000 0 (300,000) ($254,000)

User Charge Stabilization Fund Applied (or Contribution) 1,000,000 1,000,000 1,000,000 2,358,285

Surplus or Deficit Applied 3,918,593 3,918,593 4,666,000 3,032,815

Total Reserves and Surplus 5,918,593 4,918,593 5,366,000 5,137,099

Total Funding $88,901,522 $88,021,333 $89,765,197 $91,517,891

Expenditures

Divisions

Commission 251,082 231,124 281,582 287,213

Office of the Executive Director 7,004,889 6,882,035 5,927,429 6,045,977

Legal Services 1,374,215 1,188,014 1,483,718 1,513,392

Finance 1,811,939 1,803,268 2,686,432 2,740,161

Technical Services 65,072,358 64,419,541 65,494,669 66,745,912

Planning, Research & Sustainability 2,795,738 2,450,768 2,479,944 2,529,543

Water Quality Protection 5,495,650 5,646,749 5,536,017 5,646,737

Community Outreach and Business Engagement 5,002,935 5,144,432 5,722,259 5,836,704

Fringe Benefits 11,445,185 10,994,436 11,947,124 12,365,274

Charges to Capital (13,520,802) (13,771,850) (13,903,707) ($13,987,491)

Net Division Expenditures $86,733,189 $84,988,518 $87,655,466 $89,723,422

Unallocated Reserve 2,168,330 0 2,109,731 1,794,468

Total Expenditures $88,901,519 $84,988,518 $89,765,197 $91,517,891

Sources of Funds In 2016, the District’s estimated revenue is $89.7 million compared to the 2015 budgeted level of $88.9 million. The $863,675 increase represents a 1.0 percent increase from the 2015 budget. The District’s primary source of funds is user charge billings. The District also has other sources of funds for the O&M Budget: - Net sales of Milorganite® fertilizer

- Interest Income

- Other Income

- Cost recovery programs: Household Hazardous Waste and Industrial Waste Pretreatment Program

- Reserves

- Prior year’s surplus Each source of funds is further explained in the following pages. The table below presents a summary of the sources of funds the District expects in the 2016 O&M Budget.

2016 Funding Summary

Revenues 2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Proposed

Budget

Change from 2015

Budget

% Change from 2015

Budget

User Charge Billings $67,852,354 $71,489,982 $71,489,982 $73,280,017 $1,790,035 2.50% Milorganite® Sales (Net) 7,993,267 7,775,000 7,894,811 7,830,000 55,000 0.7%

Interest Income 236,296 500,000 500,000 250,000 (250,000) -50.0%

Other Income 748,170 963,082 963,082 823,998 (139,084) -14.4%

Household Hazardous Waste 1,236,353 1,311,054 1,311,054 1,258,892 (52,162) -4.0%

Industrial Waste Pretreatment 940,205 943,810 943,810 956,290 12,479 1.3%

Total Operating Revenues $79,006,644 $82,982,929 $83,102,740 $84,399,197 $1,416,268 1.7%

Equipment Replacement Fund 0 1,000,000 0 (300,000) (1,300,000) -130.0%

User Charge Stabilization Fund (1,000,000) 1,000,000 1,000,000 1,000,000 0 0.0%

Surplus or Deficit Applied 7,757,896 3,918,593 3,918,593 4,666,000 747,407 19.1%

Carryover Funds from previous year 1,500,000 0 0 0 0 0.0%

Total Reserves and Surplus $8,257,896 $5,918,593 $4,918,593 $5,366,000 ($552,593) -9.3%

Total Funding $87,264,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0%

User Charge Billings

Source of Funds 2014 Actual 2015 Budget 2015 Estimate

2016 Proposed

Budget Change from 2015 Budget

% Change From 2015

Budget

User Charge Billings $67,852,354 $71,489,982 $71,489,982 $73,280,017 $1,790,035 2.50%

User charge billings are the primary source of revenue for the District’s operating budget. The District bills each of the 28 municipalities within its service area based on waste strength, quantity, and number of connections of its users. The municipalities, in turn, directly bill their residential, commercial and industrial users. The municipalities are required to settle with the District within 45 days from the date the municipality receives the wholesale bill from the District regardless of collections. The District’s user charge system has been approved by the Environmental Protection Agency and the Wisconsin Department of Natural Resources. Such approval is a condition for grants and loans from these agencies.

How Rates Are Set Sewer user charge rates are developed annually as part of O&M Budget preparation. As the Executive Director’s proposed O&M Budget is prepared, Finance staff determine proposed sewer user charge rates in accordance with District Rules and Regulations as described in the Cost Recovery Procedures Manual. The user charge billing system allocates the total user charge billings to users based on their usage of the conveyance system. This allocation is based on total wasteload received and four billing parameters: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), billable flow, and connections. Over the last two decades, there has been a significant decline in total wasteload, largely due to the loss of industrial users and the increase in water conservation efforts by residential and industrial users.

An Ad Hoc User Charge Committee meets to review the proposed user charge rates and recommends rates for adoption by the Commission. The District’s Commission approves an O&M Budget in October and user charge rates in November, to be reflected in municipal billings for the following fiscal year, beginning in January.

In 2016, the District budget includes a 2.5 percent increase over the 2015 budgeted user charge billings.

$67.4M $67.9M $71.5M

$73.3M $75.1M

$50.M

$60.M

$70.M

$80.M

$90.M

2013 2014 2015 2016 2017

Budget Forecast

Tota

l Rev

enue

(in

mill

ions

)

User Charge Billings 2013 Actual - 2019 Forecast

25,000

30,000

35,000

40,000

45,000

50,000

55,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Budget

2015Estimate

2016Budget

Tons

Production and Sales Tonnage

Production (tons) Sales (tons)

Milorganite® Sales (Net)


2016 Proposed


% Change From 2015

Budget

Milorganite ® Sales $7,993,267 $7,775,000 $7,894,811 $7,830,000 $55,000 0.7% Milorganite® is a premier organic fertilizer on the market offering a line of all-natural, pesticide-free products. Milorganite® production is currently the most cost-effective solution for disposal of biosolids from the wastewater treatment process at the Jones Island and South Shore Water Reclamation Facilities. The Milorganite® market consists of a professional class of customers, including golf courses around the country, and a retail class of customers, including popular “big box” and warehouse stores that sell to homeowners and gardeners. To address the needs of each market, Milorganite® fertilizer comes in several particle size formulations, including Greens Grade and Classic, and is sold in a variety of packaging sizes to accommodate the needs of both professional golf courses and residential gardeners. In 2016, the budgeted net Milorganite® revenue is $7.83 million, and budgeted at the fiscal

2015 level. In 2016, the budgeted weighted-average net sales price per ton including donations, discounts, and agriculture application is $198.64, a decrease from $217.58 in the 2015 Budget. The actual average sale price may be higher or lower than the budgeted price depending on actual product sales. Sales in 2016 are estimated to be approximately 39,418, with 10,150 tons assumed for donations and agriculture land application tons. The following chart provides a historical perspective of production and sales tonnage of Milorganite®.

To dispose of product that does not meet specifications, or when the District has excess product, the District has entered into agreement with several agricultural distributors to place product in non-competitive markets.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

$0$10$20$30$40$50$60$70$80$90

$100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Budget

2015Estimate

2016Budget

Actual

Units

Sol

d

Reve

nue

(Tho

usan

ds)

Rain Barrel Sales Program

Other Income


2016 Proposed


% Change From 2015 Budget

Other Income $748,170 $963,082 $963,082 $823,998 ($139,084) -14.4% Other Income is budgeted at approximately $823,998 in the 2016 Budget. This is a decrease of $139,084 from the 2015 budgeted level. Other Income includes the following sources of funds:

- District Lease revenue

- Contributions from VWM for Material Capital Repairs & Replacements

- Reimbursements from VWM for laboratory services

- Gain or Loss from sale of fixed assets

- Rain Barrel sales revenue

- Insurance premium refunds

- Claims and settlements

- Miscellaneous

LEASES The District is currently leasing eleven properties throughout the service area. These lease agreements will generate approximately $344,000 in 2016, similar to the anticipated 2015 level.

MATERIAL CAPITAL REPAIRS & REPLACEMENTS Veolia Water Milwaukee contributes funding for certain purchases or repairs to machinery and equipment in accordance with the operating contract. In 2016, the District estimates $513,000 in contributions. LAB SERVICES The Central Laboratory provides analytical services to Veolia Water Milwaukee. In the 2016 budget, this revenue is estimated to be $107,434, similar to the anticipated 2015 level.

RAIN BARRELS Collecting rain with rain barrels is an environmentally friendly way of collecting rain water that would otherwise end up in the District’s conveyance system during wet weather events, contributing to overflows and basement backups. In 2016, the District expects the Rain Barrel program to generate close to $32,000 in barrel sales. The following chart provides a historical perspective of this program and anticipated revenue in 2016.

Household Hazardous Waste Collection Program


2016 Proposed


% Change From 2015

Budget Household Hazardous Waste

Collection Program $1,236,353 $1,311,054 $1,311,054 $1,258,892 ($52,162) -4.0%

The Household Hazardous Waste (HHW) collection program was created in 1996, in conjunction with the Intergovernmental Cooperation Council to fulfill the public need for proper household hazardous waste collection and disposal. Properly disposing of hazardous wastes through the program benefits both water quality and overall public health.

The HHW Program is a cost-recovery program for District residents. Charges to participating communities for the Household Hazardous Waste program produce revenues. Charges for 2015 will be based on actual 2015 expenditures and billed to communities in spring of 2016. Program costs are determined by both the volume of waste collected and the type of waste, as more toxic substances are more expensive to dispose of. The following graph illustrates historical trends of the program.

The 2016 Household Hazardous Waste program total revenue is projected to be $1,258,892, a decrease of 4.0 percent from the 2015 budgeted level. The decrease is primarily due to the District projecting to spend fewer staff hours on managing the program in 2016. The estimated cost per residential unit is $4.07 a 3.6 percent decrease from the 2015 budgeted level.

$3.60 $3.65

$3.95 $3.98 $4.22 $4.24 $4.07

$3.20

$3.40

$3.60

$3.80

$4.00

$4.20

$4.40

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Budget Estimate Budget

2011 2012 2013 2014 2015 2015 2016

Resid

entia

l Uni

t Cha

rge

Tota

l Pro

gram

Cos

t (in

thou

sand

s)

Total Program Costs & Residential Unit Charge

115125135145155165

2008 2009 2010 2011 2012 2013 2014 2015

Num

ber o

f Ind

ustri

es

Year

Number of Industrial Users (2008-2015)

$1,061 $1,017 $989 $977 $923 $944 $944 $956

$0$200$400$600$800

$1,000$1,200$1,400

2010 2011 2012 2013 2014 2015Budget

2015Estimate

2016Budget

Prog

ram

Rev

enue

(in

thou

sand

s)

Year

IWPP Program Revenue (2010-2016)

Industrial Waste Pretreatment Program


2016 Proposed


% Change From 2015

Budget Industrial Waste

Pretreatment $940,205 $943,810 $943,810 $956,290 $12,479 1.3% The Industrial Waste Pretreatment Program (IWPP) protects the effluent wastewater and biosolids products by prohibiting or limiting the discharge of certain pollutants. The District’s Wisconsin Pollutant Discharge Elimination System (WPDES) permit requires that the District implement the IWPP. The Department of Natural Resources originally approved the District’s program in 1983. The District enforces both local limits which are self-imposed by the District, and federal standards, which are limits established for various categories of industry by the U.S. Environmental Protection Agency. The program also ensures that industrial users pay user charges in proportion to their use of the sewerage system.

The IWPP is a cost recovery program, wherein revenues reflect actual expenditures. Three types of activities generate IWPP expenses: program administration, sampling and monitoring, and laboratory analysis. Program administration includes time spent by Industrial Waste Engineers developing policies and rules, drafting permits, inspecting facilities, analyzing regulatory and user charge data, taking enforcement action, providing technical assistance, and preparing reports. Sampling and monitoring costs include the cost of time spent by the staff in collecting data and monitoring pollutants. Laboratory analysis costs include the costs of testing the sample for its chemical make-up. The Cost Recovery Procedures Manual annually establishes industrial surcharges and fees for sample collection and analysis. These rates are used as a basis of making revenue estimates for laboratory services incurred as part of the Industrial Waste Pretreatment Program.

The number and complexity of significant industrial users are the dominant factors affecting IWPP costs. As the local economy evolved away from large-scale manufacturing, both the number and complexity of significant industrial users decreased. As seen in the graph below, since 2010 the number of significant industries has held fairly constant.

The following chart displays the IWPP revenue from 2010 to 2016. In the 2016 O&M Budget, IWPP revenue is estimated to increase 1.3 percent to $956,290. The revenue budgeted for 2016 is 9.9 percent below actual revenue in 2010. The declining IWPP revenue is a reflection of the decrease in the number of industrial users and the increase of water quality initiatives implemented by the District and industries themselves. The decrease also reflects a decline in the number and complexity of enforcement actions required.

Surplus Returned


2016 Proposed


% Change From 2015

Budget

Surplus Returned $7,757,896 $3,918,593 $3,918,593 $4,666,000 $747,407 19.1%

In the 2016 Proposed Budget, the surplus returned is $4,666,000. In compliance with 40 CFR 35.929-2 (b) for application of surplus/deficit, the District determines the surplus or deficit attributable to each sewer user charge billing parameter (Flow, BOD, TSS, Connections) at the end of each fiscal year. The surplus or deficit is applied to user charge billing rates in the budget two years after the fiscal year that created it, in compliance with federal and state regulations. In the 2016 budget, the District returns the 2014 surplus. The surplus is $747,407 more than that applied to the 2015 budget.

Interest Income


2016 Proposed


% Change From 2015 Budget

Interest Income $236,296 $500,000 $500,000 $250,000 ($250,000) -50.0% Total Interest Income projected for the 2016 O&M Budget is $250,000, which represents a decrease of $250,000 from the 2015 budget. An average interest rate of 0.5 percent on approximately $50 million in investments is projected for 2016. Currently, as the District’s long-term investments mature, reinvestment opportunities are available at interest rates that are consistent with the low rates in the previous year. These low rates are a result of efforts by the Federal Reserve to help improve the economy.

Equipment Replacement Fund


2016 Proposed


% Change From 2015

Budget Equipment Replacement Fund

Applied (or Contribution) $0 $1,000,000 $0 ($300,000) ($1,300,000) -130.0%

A contribution will be made to the Equipment Replacement Fund (ERF) in 2016. The Equipment Replacement Fund is a state-mandated reserve that is equal to 5 percent of the value of equipment owned by the District (Wisconsin Administrative Code, section NR-128.03 (18)). The District periodically conducts a fixed asset study that reviews all of the machinery and equipment with a value of $25,000 or greater and a service life of between 10 and 20 years. The total value of machinery and equipment from this study sets the net asset value of the equipment replacement fund. On January 1, 2015, the value of assets within the ERF is $292 million. As of January 1, 2015, the required balance is $14,601,909. Consequently, the District does not have excess funding in the Equipment Replacement Fund. An evaluation of the ERF will be undertaken to determine whether reductions could be made to avoid future contributions.

Equipment Replacement Fund Summary

2015 2016

Beginning Restricted Fund Balance $14,601,909 $14,601,909 Withdrawal / (Contribution) $0 ($300,000) Ending Restricted Fund Balance $14,601,909 $14,901,909

Equipment Replacement Fund Net Asset Value* $292,038,179 $297,878,942 Required Restricted Fund Balance (5% of NAV)* $14,601,909 $14,893,947 Excess Restricted Fund $0 $7,962

User Charge Stabilization Fund The District Commission established the User Charge Stabilization Fund in 1998 to help the District avoid large increases or decreases in the User Charge billings.


2016 Proposed


% Change From 2015

Budget

User Charge Stabilization Fund Applied (or Contribution) ($1,000,000) $1,000,000 $1,000,000 $1,000,000 $0 0.0%

Commission policy requires that the fund balance be no less than 2.5 percent of the current year’s revenues. The projected balance as of 1/1/2015 is $9.6 million and the expected balance as of 12/31/2015 is $8.6 million, both of which exceed the required minimum balance.

User Charge Stabilization Fund Summary Balance of Fund as of 1/1/2015 $9,647,000 2015 Net Withdrawals ($1,000,000)

2015 Estimated Balance as of 12/31/2015 $8,647,000

Balance of Fund as of 1/1/2016 $8,647,000 2016 Net Withdrawals ($1,000,000) Anticipated Balance as of 12/31/2016 $7,647,000 Minimum Required per Commission Policy $2,054,600 Remaining Available Fund Balance $5,592,400

Commission The Commission is the governing body, and establishes and enforces District policies in compliance

with statutory responsibility. The Commission directs and controls budgetary, administrative,

procedural, operational, and informational support for the District.

BACKGROUND AND OVERVIEW The Commission is comprised of 11 members: seven appointed by the Mayor of the City of Milwaukee, subject to Common Council confirmation; and four appointed by the MMSD Executive Council of the Intergovernmental Cooperation Council (ICC) which is comprised of elected officers of the cities and villages in the District other than the City of Milwaukee. From the City of Milwaukee, three are elected officials and each serve a one-year term. The other four members are citizen appointees from Milwaukee and each serve a three-year term. The four Commission members from the ICC include three elected officials and one citizen; all four ICC-appointed members serve a three-year term. No Commissioner may serve more than nine consecutive years.

The Commission is charged with the responsibility of establishing and enforcing policies for the District. The Commission consists of two standing committees: Policy, Finance and Personnel Committee and the Operations Committee. Matters discussed by the committees include financial planning, budget recommendations, reporting and audits, personnel matters and labor relations, legal and legislation, public information policies, collection/treatment/disposal compliance, industrial development and pretreatment, and the award of contracts.

Commission

Operations Committee

Policy, Finance, and Personnel

Committee

COMMISSION DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015

Budget AUTHORIZED POSITIONS

Commissioners 11 11 11 11 0 Management Non-represented Represented Total 11 11 11 11 0

USES - OPERATING EXPENSES

Commission

203,746

251,082

231,124

281,582

30,500 12.1%

Gross Division Total $203,746 $251,082 $231,124 $281,582 $30,500 12.1% Charges to Capital - - - - - 0%

Net Division Total $203,746 $251,082 $231,124 $281,582 $30,500 12.1%

USES BY EXPENDITURE TYPE

Fixed Assets - - - - - 0.0%

Personal Services 116,947 119,207 119,207 119,207 - 0.0%

Contractual Services 82,037 126,775 106,775 157,275 30,500 24.1%

Materials & Supplies 4,762 5,100 5,142 5,100 - 0.0%

Gross Division Total $203,746 $251,082 $231,124 $281,582 $30,500 12.1% Charges to Capital - - - - - 0.0%

Net Division Total $203,746 $251,082 $231,124 $281,582 $30,500 12.1%

FIXED ASSETS The Division does not have any funding for fixed assets in 2016.

PERSONAL SERVICES The $119,207 includes funding for the salaries for the 11 Commission members.

CONTRACTUAL SERVICES The $157,275 in contractual services includes funding for Commissioners to travel to meetings, graphic printing services, publishing official notices, the District’s annual financial audit, transcription services, and filming and recording Commission meetings. In 2016, the contract for the financial audit increases by $15,000 because the District is issuing a request for proposals for an auditor because the current contract expires at the end of 2015.

MATERIALS AND SUPPLIES The $5,100 in materials and supplies includes funding for Commissioners to be reimbursed for internet usage, as well as meeting and office supplies.

CHARGES TO CAPITAL The Division does not anticipate charging any staff time to capital projects in 2016.

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RECENT ACCOMPLISHMENTS POLICY DIRECTION In 2015, the Commission adopted policy direction regarding the 2050 Facilities Plan. The Executive Director will use the policy direction to develop detailed policies and procedures for the 2050 Facilities Plan. The policy direction supports an efficient and high-performance sewerage system as well as effective planning that sustainably meets the needs of growth. In support of the 2035 Vision, the Policy Direction incorporates both integrated watershed management and climate change mitigation. The Commission instructs that the 2050 Facilities Plan include an integrated approach to watershed management that responds to inter-jurisdictional opportunities and limits related to wastewater and stormwater management and flood risk reduction. The Policy Direction also sets forth a list of climate change mitigation and adaptation goals for 2035 and additional improvement initiatives for 2050.

UTILITY OF THE FUTURE In 2015, the National Association of Clean Water Agencies (NACWA) honored the District with Utility of the Future Award for demonstrating bold leadership in managing resources, partnering effectively in local economic development and engaging stakeholders for environmental, economic and social benefits.

Support for the 2016-18 Strategic Plan Collaborative – Through formal meetings, the Commission hears requests from staff, individual residents and resident groups on a number of issues. They then must make decisions that best respond to the community’s needs and support the District’s vision. Some examples of customers the Commission serves include: residents through education, outreach and community engagement initiatives; regional partners through issue identification, problem-solving and decision-making; and District staff through supporting new initiatives, fiscal transparency, and maintaining the quality of the District’s workforce.

Accountable – The Commission provides leadership that is responsive to the needs of the region in a fiscally sound manner.

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The Executive Director is appointed by the Milwaukee Metropolitan Sewerage District Commission and serves as the District’s Chief Executive Officer. The Executive Director provides organizational leadership to implement Commission policies that ensure the District meets its customers’ needs in a cost-effective manner.

SERVICES THE OFFICE OF THE EXECUTIVE DIRECTOR: Provides organizational leadership for the division and District. The cost center oversees general administration of District business. Prior to 2016, the cost center also housed the Communications group who oversaw public information, managed the Greenseams program, and promoted policies and rules that support District interests on the federal, state, and local levels. Beginning in 2016, the Communications group is budgeted in the Community Outreach and Business Engagement Division in order to streamline outreach efforts.

INFORMATION TECHNOLOGY SERVICES: Ensures data integrity, optimal network functionality, and provides hardware, software, and user support. The cost center also provides technological expertise to District staff.

HUMAN RESOURCES: Manages employee benefits, compensation, labor relations, recruitment, affirmative action and diversity, unemployment and worker’s compensation, work-study, organizational training and development, and other human resource policies and procedures. FACILITIES MANAGEMENT: Helps provide a clean and safe work environment. The cost center also manages the District’s mail and Headquarters building’s heating, ventilation, air conditioning, and plumbing. The cost center focuses on environmentally-friendly, energy-efficient, sustainable, and cost-effective ways of operating the District’s facilities.

Information Technology Services

Greg O’Hearn

Human Resources Candace Richards

Executive Director Kevin Shafer, P.E.

Facilities Management Anna Kettlewell


Kevin Shafer, P.E.

Commission

OFFICE OF THE EXECUTIVE DIRECTOR DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015

Budget AUTHORIZED POSITIONS Management 7 8 8 7 (1) Non-represented 17 17 17 15 (2) Represented 9 8 8 7 (1) Total 33 33 33 29 (4)

USES - OPERATING EXPENSES Executive Director 932,316 1,097,244 975,309 385,929 (711,315) -64.8% Information Services 4,306,377 4,104,075 4,103,670 3,707,700 (396,376) -9.7% Human Resources 783,775 888,009 872,153 868,857 (19,152) -2.2% Facilities Management 0 $915,561 930,903 964,943 49,382 5.4%

Gross Division Total $6,022,468 $7,004,889 $6,882,035 $5,927,429 ($1,077,461) -15.4%

Charges to Capital (335,841) (336,519) (366,463) (96,360) 240,159 -71.4% Net Division Total $5,686,627 $6,668,370 $6,515,573 $5,831,068 ($837,302) -12.6%

USES BY EXPENDITURE TYPE Fixed Assets - - - 22,450 22,450 100.0% Personal Services 2,735,370 2,992,849 3,008,128 2,681,434 (311,415) -10.4% Contractual Services 2,213,511 3,217,181 3,051,451 2,845,111 (372,071) -11.6% Materials & Supplies 1,073,587 794,859 822,456 378,434 (416,425) -52.4% Gross Division Total $6,022,468 $7,004,889 $6,882,035 $5,927,429 ($1,077,461) -15.4% Charges to Capital (335,841) (336,519) (366,463) (96,360) 240,159 -71.4% Net Division Total $5,686,627 $6,668,370 $6,515,573 $5,831,068 ($837,302) -12.6%

FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The $22,450 includes funding for the Facilities Management group to buy a new floor stripper and for new office furniture.

PERSONAL SERVICES The $2,681,434 in Personal Services includes funding for salaries for the 29 full-time employees and the Human Resources work-study program. The Work Study program allows for college-aged students to spend 12 weeks during the summer learning about District work and the water industry. Personal Services also includes funding for District staff to receive tuition reimbursement for attending college courses in order to further their careers as well as funding for staff to attend off-site seminars and trainings. Off-site training for all District employees is centralized in and expensed to the Human Resources cost center. In 2016, the Personal Services budget decreases by $311,415 because the Communications group is funded and expensed in the Public Information, Intergovernmental Affairs, and Educational Outreach cost center instead of the Office of the Executive Director. Additionally, in the Facilities Management cost center, one vacant Facilities Lead position is eliminated.

CONTRACTUAL SERVICES The $2,845,111 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In the Office of the Executive Director cost center, the contractual services budget includes funding for memberships to water industry groups. In the Information Technology Services cost center, the funding is available for the District’s telephone services, software licenses and maintenance contracts, software consultants, and maintenance support. The Human Resources contractual services budget includes funding for a labor relations consultant, a benefits consultant, a comprehensive market study of District positions, and a training and development consultant. The Facilities Management budget includes funding for professional electrical, plumbing, and HVAC work, snowplowing and landscaping, and after-hours cleaning services. The contractual services budget decreases

46

by $372,071 in 2016 from the 2015 level due in part to the Communications group being funded through the Public Information, Intergovernmental Affairs, and Educational Outreach cost center instead of the Office of the Executive Director.

MATERIALS & SUPPLIES The materials and supplies account group includes cleaning supplies, tools, office supplies, and new software and hardware as well as upgrades. In the 2016 budget, the account group decreases by $416,425 because the Information Services group had a large one-time purchase of a storage array network in the 2015 budget, but the cost center does not include the purchase in the 2016 budget.

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2016 budgeted level decreases by $240,159, an increase to the O&M Budget, from the 2015 budgeted level due to the Communications group being funded and expensed in the Public Information, Intergovernmental Affairs, and Educational Outreach cost center instead of the Office of the Executive Director. A large part of the Communications group’s work includes administering the District’s Greenseams® program, a capital program, as well as advertising for capital programs such as Green Solutions and Private Property Inflow and Infiltration.

RECENT ACCOMPLISHMENTS HUMAN RESOURCES In 2015, the Human Resources cost center helped manage the Wellness Program. Wellness Programs inspire employees to choose a healthy lifestyle both at home and at work to ultimately reduce the cost of healthcare insurance. By better managing chronic conditions and diseases and investing in the health and wellness of our workforce, the District will save money in the long-term. In 2015, the District continued to partner with Froedtert Hospital to offer health risk assessments to active employees. The assessments compile data on District employees and help the cost center determine what type of wellness activities it should promote for the employees. In 2015, the Wellness Program offered healthy treats, a bicycling program, and guest speakers. Human Resources Department, also partnered with Information Technology Services, to develop and implement the District’s first online recruitment and application system. The application system will allow applicants to log-on, create an applicant profile, and apply for one or multiple job openings with the District. FACILITIES During 2015 the Facilities cost center improved the environmental impact of the District’s lawn care program for the campus by eliminating the use of chemicals during the growing season. This change also improves the quality of runoff water from the District’s Headquarters and Laboratory buildings. Facilities staff also continued to upgrade building components in 2015, including implementing American with Disabilities Act complaint features throughout both the Headquarters and Laboratory buildings. INFORMATION TECHNOLOGY SERVICES The cost center has made major upgrades to District infrastructure in 2015, including the replacement of centralized servers; network equipment, including wireless capabilities in the Headquarters and Laboratory; and firewall and security hardware. Additionally, in 2015, IT plans to update and consolidate the District’s phone and internet service. The networking and phone changes are anticipated to result in annual cost savings of $74,000, due to new reduced cost telephone and internet service contracts, reduced network hardware maintenance costs, and in-house staff monitoring the network with the new enhanced network capabilities. IT assisted Human Resources in implementing an online job applicant and hiring process at the District. IT also implemented a vendor-supported order entry system for the Marketing and Milorganite® cost center, increasing the reliability and efficiency in that process. Finally, IT worked with the Survey and Facilities Information groups to transform the Digger’s Hotline ticketing system from a paper process to a fully mobile, all electronic process.

PERFORMANCE MEASURES

Strategic Objective Goal Task 2014 Result 2015 Target 2016 Target

Create and maintain a resilient workforce

Strengthen internal training programs and increase opportunities for employees to learn about different District operations and processes

Identify emerging District-wide learning needs

Yes Yes Yes

Implement training recommendations Yes Yes Yes

Mitigate risk by providing a safe and secure workplace

Facilities are well maintained and ADA compliant

Yes Yes Yes

Lean and Efficient IT Systems

Regularly identify emerging technology trends and adjust technology based on changing business requirements

Software and hardware replacement schedules are updated annually

Yes Yes Yes

Annually evaluate how new software systems interact with existing software systems

N/A Yes Yes

2016 Initiatives in Support of the 2016-2018 Strategic Plan

Lean and Efficient – In order to addresses current and anticipated IT infrastructure, the IT cost center will develop and update policies and procedures for acquiring new software systems.

Accountable – The IT cost center will work with a number of different divisions to explore the District’s opportunities to publish more data on the District’s website.

Resilient - The Human Resources cost center will continue to develop initiatives that help all District employees understand their role in achieving the District’s mission. Human Resources will continue to enhance employee development, quality improvement and performance appraisal systems. The Facilities cost center will continue to implement best practices to ensure the safety of District employees.

Legal Services The Legal Services Division was created by the Milwaukee Metropolitan Sewerage District Commission

in 1978. The Division conducts all of the District’s legal business and provides specialized legal expertise in the District’s major areas of operations, including environmental, construction and

contract, government finance, municipal relations, and human resources. The purpose of the Legal

Services Division is to provide legal advice, strategy, and support to the Commission, Executive

Director, and District staff to enable legally sound governmental and business decisions and their

effective implementation.

SERVICES

LEGAL SERVICES: provides on-going support to District

operations by advising the Commission, Executive

Director, and staff on programs and policies to ensure

that District operations are consistent with legal

requirements. The Division also represents the District in

all litigation and claims by or against the District, either

as primary legal counsel or in overseeing outside legal

counsel. Each matter is assigned to a specific staff

attorney to assess possible District liability, preserve

evidence, identify witnesses, and provide ongoing claim

monitoring activities. During the risk identification

process, the Legal Services Division provides advice to

the Commission and District management regarding the

risk of alternative courses of action. A comprehensive

legal and risk management strategy enables

management decisions to be well grounded legally and

minimize liability exposure, thereby supporting cost-

effective operations. The Legal Services Division also

provides timely advice and opinions to support District

business operations and to avoid legal problems. This

includes legal review and input for water and air pollution

permits, compliance reporting, planning reports, and

contracts.

RECORDS MANAGEMENT: Provides comprehensive

records management services for all District records

in compliance with State Statutes and District policies.

This group has developed the Information

Governance Plan and maintains the District’s records

retention schedule and manages updates to the

records management program such that District

records are maintained in an environmentally-friendly

and sustainable manner.

Legal Services

Susan B. Anthony

Records Management

John Wiesinger

Executive Director

Kevin Shafer, P.E.

LEGAL SERVICES DIVISION BUDGET SUMMARY

2014

Actual

2015

Adopted

Budget

2015

Estimate

2016

Budget

Change

from 2015

Budget

% Change

from 2015

Budget

AUTHORIZED POSITIONS

Management 1 2 2 2 0 0

Non-represented 7 7 7 7 0 0

Represented 0 3 3 3 0 0

Total 8 12 12 12 0 0


Legal Services 1,109,151 1,071,695 883,310 1,190,348 118,652 11.1%

Records Management - 302,520 304,704 293,370 (9,150) 100.0%

Gross Division Total $1,109,151 $1,374,215 $1,188,014 $1,483,718 $109,502 8.0%

Charges to Capital (354,472) (403,183) (269,650) (443,133) (40,607) 10.1%

Net Division Total $754,679 $971,033 $918,364 $1,040,584 $69,552 7.2%



Personal Services 649,857 823,125 838,874 849,923 26,797 3.3%

Contractual Services 417,947 496,590 296,640 582,795 86,205 17.4%

Materials & Supplies 41,347 54,500 52,500 51,000 (3,500) -6.4%


Charges to Capital ($354,472) (403,183) (269,650) (443,133) (39,951) 9.9%

Net Division Total $754,679 $971,033 $918,364 $1,040,584 $69,552 7.2%

2016 Budget Notes and Changes from 2015

FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or

more and has a useful life of three or more years and transportation equipment. The Legal Services Division budget does

not contain any fixed assets.

PERSONAL SERVICES The Personal Services account group increased $26,797 over the 2015 budgeted level due to one

internal promotion and salary increases. The salaries for 12 full time employees are included in these accounts.

CONTRACTUAL SERVICES The 2016 Legal Services Division budget includes $582,795 for contractual services for both the

Records Management and the Legal Services cost centers. The Records Management cost center portion includes a

$65,000 contract for physical records offsite storage and transport. Within the Legal Services cost center, outside counsel,

experts, and lobbying make up 85 percent of the entire account. The District relies upon these services when dealing with

legal matters outside of the expertise of Division staff attorneys.

MATERIALS AND SUPPLIES THE Legal Services cost center relies upon funds budgeted in the materials and supplies

account for legal documents and publications to aid in business processes. This comprises 86 percent of the materials and

supplies budget for the Division. The Records Management cost center purchases boxes for physical records storage with

a small percentage of this budget.

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges

for work performed for capital projects and programs. The 2016 budgeted level increases by $39,951 from the 2015

budgeted level due to projected increased workload for capital associated legal matters. These largely consist of matters

related to capital projects at the treatment plants, 30th

Street Corridor real estate work, and green infrastructure projects.

RECENT ACCOMPLISHMENTS

LANDFILL GAS (LFG) UTILIZATION PROJECT The landfill gas project became fully operational in 2013; during this

start-up phase, the Legal Services Division provided representation to recover certain delay costs associated with start-up

issues in the turbines. In addition, the Division provides ongoing advice regarding issues related to LFG quality and

supply under the terms of the purchase agreement with Advanced Disposal Emerald Park Landfill and a potential new

source of LFG. The Division continues to provide advice as this project moves forward.

CHALLENGE TO WE ENERGIES PROPOSED RATE INCREASE The utilization of LFG and biogas at South Shore

has reduced the District’s reliance on purchased natural gas and electricity. This change in usage resulted in We Energies

proposing a new “stand by” electric power charge applicable only to the District that would have substantially reduced the

District’s savings resulting from use of LFG and biogas by charging the District $1.0 to $1.5 million per year for power it

would not use. During 2014, the Legal Services Division, on behalf of the District, intervened in the We Energies rate

review proceedings at the Wisconsin Public Service Commission and was successful in defeating this new charge, thus

protecting the District’s energy savings. The Division continues to monitor proposed rate making by We Energies.

LITIGATION The Division has significantly reduced the number of litigation matters pending against the District by

effectively settling the long-standing case brought by the Boston Store owners and by winning a summary judgment

motion in the lawsuit brought by taxpayers in the City of Franklin, resulting in dismissal of the case. In addition, claims for

flooding resulting from storms in 2008 and 2010 were resolved with no damages paid by the District.

DISCHARGE PERMIT The Division advised the Commission during 2014 to file with the WDNR necessary modification

requests to the WPDES discharge permit, and has negotiated those modifications which were issued in 2015, in order to

maintain permit compliance while moving forward toward water quality improvement in the region.

30TH STREET INDUSTRIAL CORRIDOR PROJECT

The Division has provided ongoing legal advice concerning necessary real estate acquisition, drafting of intergovernmental

cooperation agreements with the City of Milwaukee, and other legal issues in support of this important project.

INFORMATION GOVERNANCE During 2015, the Records Management cost center came under management by the

Director of Legal Services and continued the process to move the District’s records program to an approach which manages the lifecycle of information using digital technology. To accomplish this, the Records team, with the help of the

Information Technology group, migrated all of the District’s physical records to a new software package, TAB Fusion RMS.

In addition, the Records team partnered with the Legal Services cost center and the Information Technology Services cost

center to develop the Information Governance Plan, which includes the policies and procedures necessary to support the

electronic records management system.

CORE OPERATIONS PERFORMANCE MEASURES


Collaborative – In order to secure the best operational, lowest cost alternative for operations post-2018, the Legal Services

Division will assist in the evaluation of the alternatives.

Task

2014 2015 Target 2016 Target

Settlements are resolved for amounts that do not exceed the

District’s exposure Yes Yes Yes

90% of legal advice and opinion written requests responded to

within 30 working days of the request’s receipt Yes Yes Yes

Records requests are responded to in an timely fashion Yes Yes Yes

Finance The Finance Division provides financial management and analysis necessary for efficient operations

and prudent decision making.

SERVICES The District is committed to providing quality services in the most cost-effective manner. To achieve this goal, the District must engage in effective financial planning and management. To that end, Finance staff are involved in major decisions the District undertakes by analyzing the cost and benefit of each option being considered. Finance staff also prepare and manage forecasts of future years’ revenues and expenditures so that the financial impact of issues are analyzed both in the short- and long-term. In the 2016 Budget, the two cost centers that formally comprised the Division – Accounting and the Office of Management and Budget – combined into one division.

The Division records financial transactions and reports financial results, safeguards and invests District funds, issues debt, provides payroll and vendor payment services, provides application and billing for grant and loan programs, develops billing rates and invoicing to fund District operations and capital improvements, and manages the risks of accidental loss associated with property, liability and workers compensation exposures. The Division also develops and administers the Operations & Maintenance and Capital Budgets and the District’s Strategic Plan. Finally, beginning in 2016, the division also provides real estate acquisition and management.

Executive Director

Kevin Shafer, P.E.

Director of Finance / Treasurer

Mark Kaminski, CPA

FINANCE DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015

Budget AUTHORIZED POSITIONS Management 5 6 6 6 0 Non-represented 4 4 4 6 2 Represented 7 7 7 7 0 Total 16 17 17 19 2


Finance 1,800,134 1,811,939 1,803,268 2,686,432 874,493 48.3%



Net Division Total $1,595,007 $1,606,151 $1,549,800 $2,385,421 $779,270 48.5%



Personal Services 1,186,314 1,200,761 1,190,841 1,434,772 234,011 19.5%

Contractual Services 600,564 585,877 587,127 1,215,010 629,132 107.4%

Materials & Supplies 13,256 25,300 25,300 36,650 11,350 44.9%



Net Division Total $1,595,007 $1,606,151 $1,549,800 $2,385,421 $779,270 48.5% FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division does not have any funding for fixed assets in 2016.

PERSONAL SERVICES The $1,434,772 in Personal Services includes funding for salaries for the 19 full-time employees. The $234,011 increase from the 2015 budgeted level is partly due to salary increases and partly due to the addition of the real estate function. In 2015, real estate services, including a full-time Real Estate Specialist and a full-time Secretary, were authorized and budgeted in the Capital Program Support cost center. In mid-year 2015, the real estate functions moved to the Finance division with the changes to the Controller position and responsibilities. The 2016 budgeted personal services level also increases over the 2015 level because of the addition of a full-time Real Estate Generalist position. Lastly, one vacant Account Clerk position is being eliminated in the 2016 budget.

CONTRACTUAL SERVICES The $1,215,010 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In 2016, the contractual services increase by $629,236 over the 2015 budgeted level because of the addition of contracted real estate services, increased insurance premiums and a user charge rate study. The rate study aims to analyze different rate structures and charges with a focus on financial stability, equity, and best management practices.

MATERIALS & SUPPLIES The materials and supplies account group includes safety and medical supplies as well as office supplies. In the 2016 budget, the account group increases by $11,350 in order to purchase new security cameras for the headquarters parking lot.

54

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2016 budgeted level increases by $95,223 from the 2015 budgeted level due to the addition of the real estate group to the division. The real estate group helps acquire and manage properties for the capital Greenseams® program as well as capital watercourse projects.

RECENT ACCOMPLISHMENTS The District’s 2014 Comprehensive Annual Financial Report received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the 37th consecutive year. Also, in 2015, the District’s budget received the Government Finance Officers Association Distinguished Budget Presentation Award for the 15th consecutive year.


Strategic Objective 2014 Result 2015 Result 2016 Target

Produce an investment portfolio which has a greater yield than the State of Wisconsin Local Government Pool Investment Fund, and ensure that the District is operated in a fiscally prudent manner by contributing to the stability and growth of the region’s tax base and customer rate base.

Yield on MMSD Investments (%) 0.57%

Yield on State of Wisconsin Investments 0.158%

Maintain the District’s Bond Rating

Fitch Ratings AAA AAA AAA

Moody’s Investors Service Aaa Aa1 Aa1

Standard & Poor’s AA+ AA+ AA+

Adopt a balanced budget Yes Yes Yes

Receive the GFOA Distinguished Budget Award Yes Yes Yes

Receive the GFOA Certificate of Achievement for Excellence in Financial Reporting Yes Yes Yes


Collaborative – In 2016, the Finance division will work with Technical Services and Legal Services to explore different options for District operations after the expiration of the current operating contract with Veolia Water Milwaukee.

Lean and Efficient - In 2016, the Finance division will explore capital budget estimating process improvements in order to increase the accuracy of the estimates.

Accountable - In order to increase transparency and improve internal performance, the Finance division will audit the District’s current performance metrics and dashboard. Once the division has a better understanding of who is using what data and how to best present the data, the District can make data-informed decisions.

Resilient – The Risk Management group will document and train staff on the business continuity plan in order to mitigate risk.

Technical Services The mission of the Technical Services Division (TSD) is to protect the environment and promote public health and safety by providing for flood mitigation, wastewater conveyance, and wastewater treatment through managing the design and construction of capital projects. The Division also provides oversight of contracts to operate and maintain the District’s watercourse, conveyance, landfill gas pipeline, and wastewater reclamation facilities.

SERVICES The Technical Services Division has primary responsibility for the development, implementation, and management of most of the District’s capital improvement program. The Division provides oversight and management of the operations and maintenance contracts that operate and maintain the District’s reclamation facilities, conveyance system, watercourse system, and landfill gas pipeline. Specifically related to this objective are capital projects from the 2020 Facilities Plan, Veolia Water Milwaukee (VWM) contract, and Watercourse System Improvement Plans.

Following is a brief description of the cost centers under the Technical Services Division.

ENGINEERING SERVICES: Designs, and manages design and engineering services during construction of improvements and additions to District facilities including the water reclamation facilities, conveyance system, and watercourse system. In addition, this cost center manages all watercourse planning and maintenance contracts.

OFFICE OF CONTRACT COMPLIANCE: Oversees the operations of the District’s wastewater reclamation facilities, conveyance system, and landfill gas pipeline. The cost center manages the operation and maintenance contract with VWM, the operation and maintenance contracts for the landfill gas pipeline, and the landfill gas supply contract. The cost center also works on power supply and energy management, including working with We Energies and purchasing natural gas hedges.

CAPITAL PROGRAM SUPPORT: Manages the development and administration of the Division’s Capital Improvement Program, including forecasting project costs and schedules throughout the District’s six-year planning horizon and beyond. The cost center provides construction management and contract administration services for Capital and O&M funded contracts, and oversees the District’s geographic and facilities information systems programs. Finally, the cost center protects underground District assets throughout the District’s service area via participation in the Diggers Hotline one-call system and provides surveying services for a variety of District functions including capital projects, asset protection, real estate and GIS.

Executive Director Kevin Shafer, P.E.

Technical Services

Michael Martin, P.E.

Office of Contract Compliance

Pat Obenauf, P.E.

Engineering Services

Kevin Lyons, P.E.

Capital Program Support Rick Niederstadt, P.E.

TECHNICAL SERVICES DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015


Management 11 11 11 11 0 Non-represented 25 27 27 30 3 Represented 30 30 30 31 1 Total 66 68 68 72 4


Engineering Services 3,826,357 3,873,294 3,858,215 2,452,035 (1,421,259) -36.7%

Capital Program Support 1,060,108 1,129,392 1,163,890 3,055,812 1,926,421 170.6%

Office of Contract Compliance 58,189,213 60,069,672 59,397,437 59,986,822 (82,850) -0.1%

Gross Division Total $63,075,678 $65,072,357 $64,419,541 $65,494,669 $422,312 0.6% Charges to Capital (6,309,197) (5,824,100) (6,216,679) (6,008,502) (184,402) 3.2%



Fixed Assets 59,704 1,782,750 335,338 320,400 (1,462,350) -82.0%


Contractual Services 57,862,787 58,074,905 58,850,394 59,848,522 1,773,617 3.1%


Gross Division Total $63,075,678 $65,072,357 $64,419,541 $65,494,669 $422,312 0.6% Charges to Capital (6,309,197) (5,824,100) (6,216,679) (6,008,502) (184,402) 3.2%


FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division includes funding for survey equipment and replacement equipment for the treatment plants in the 2016 budget.

PERSONAL SERVICES The $5,271,797 in Personal Services includes funding for salaries for the 72 full-time employees. The $117,645 increase from the 2015 budgeted level is partly due to salary increases and partly due to the addition of the one Senior Project Manager II, one GIS Data Coordinator, and one Computer Aided Design (CAD) Technician. The Division also added three authorized but unfunded Project Engineer positions to help the District build career ladders into its staffing plan. To off-set the addition of new positions, the Office of Contract Compliance eliminated one vacant Contract Compliance Administrator – Limited Term Employee. With the Division’s reorganization and the real estate services that were previously budgeted in the Capital Program Support cost center moving to the Finance Division, the total number of employees in the Capital Program Support cost center is reduced by two – one Real Estate Specialist and one Secretary.

CONTRACTUAL SERVICES The $59,848,522 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In the Office of Contract Compliance, the contractual services account class includes the operating contract with Veolia Water Milwaukee, totaling $43,418,511, as well as the utilities to operate the District’s facilities. Under the terms of the VWM contract to operate the reclamation facilities and conveyance systems, the District pays 75 percent of the actual energy costs

while VWM pays the remaining 25 percent. In 2016, the energy budget totals $11,984,646. The District also uses contract services to repair structures, machinery, and equipment at the water reclamation facilities, on the conveyance system, and along the District’s watercourse jurisdiction. In 2016, those services are budgeted at $2,480,000. Finally, the District uses contracted services for outside support such as GIS support, Diggers Hotline marking membership and after-hours support.

MATERIALS & SUPPLIES The materials and supplies account group includes survey supplies, safety equipment, and office supplies.

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2016 budgeted level increases by $184,402, a decrease to the O&M Budget, from the 2015 budgeted level based on the 2015 year-to-date experience and year-end projection.


The Division completed a number of noteworthy projects in 2015. For example, the Division completed the Underwood Creek Force Main Rehabilitation Project which will significantly extend the life of the force main, as well as the Jones Island Preliminary Treatment Facility Upgrade which will provide a substantial improvement to the screening and handling of raw wastewater. The Division completed the testing and evaluation of Biological Phosphorus Removal at the South Shore Water Reclamation Facility. After completing the testing, the recommendation is to proceed with the project to a preliminary engineering phase. The Division implemented new mixers in two of the South Shore digesters which will increase digester gas production and reduced energy purchases. The Division also upgraded the District’s conveyance flow monitoring system. The watercourse group removed concrete on a 1,100 feet segment of the Menomonee River in order to improve aquatic habitat and reduce fish barriers; continued the engineering design phase of the 30th Street Industrial Corridor Wet Weather Relief Project; and continued engineering design on the Kinnickinnic River 6th Street to 27th Street Flood Management Project. Finally, the Division continued to evaluate options for the District’s operations and maintenance after the existing O&M contract expires in 2018, and procured a new contract for the operation and maintenance of the landfill gas pipeline. The Division also experienced a number of retirements and promotions in 2015. As a result, the Division altered its table of organization and allowed for multiple promotions and new hires. The Division also initiated internal process change workgroups, which have or will result in management and operational improvements and enhancements.

96.2% 99.5% 99.9% 98.5% 99.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

% C

aptu

red

and

Trea

ted

Year

Wastewater Captured & Treated



Collaboration - The Technical Services Division will work with the Finance Division and Legal Services Division to explore options for District operations after 2018 when the current contract with Veolia Water Milwaukee expires. The Division will also continue to explore options for acquiring enough landfill gas to meet its current and future needs.

Lean and Efficient – The Division will partner with the Finance Division to improve the capital budget estimating process to keep the actuals closer to the budgeted level.

Accountable- The Division will implement new procedures for storing capital project information, and increase the use of the District’s intranet, SharePoint.

Resilient - In 2015, the Division had multiple promotions within key management areas. This has resulted in multiple vacancies at the Senior Project Manager level. In 2015 and 2016, staff will be spending considerable effort assisting new staff in learning District policies, practices and procedures.

CMAR Score Year

Wastewater Reclamation Facility 2011 2012 2013 2014

Jones Island 4.00 4.00 4.00 4.00

South Shore 3.84 3.84 3.79 3.90

Goal Task 2014 2015 Target 2016 Target Implement Capital Projects on Schedule

All high priority capital projects implemented on schedule Yes Yes Yes

Operate the District’s conveyance and treatment systems properly

Receive NACWA Platinum Award Yes Yes Yes

Maximize the stability of user charge billings and the tax levy

Capital project total project costs stay within budget Yes Yes Yes

O&M expenditures stay within budget Yes Yes Yes

The CMAR score is on a scale of 0 to 4.0 with 4.0 being the highest score.

The Capital Improvements Program includes upgrades to the water reclamation facilities and conveyance system that help the District capture and treat over 98 percent of the water that falls within the District’s service area.

Planning, Research & Sustainability The Division conducts long-range, system-level facilities planning; analyzes potential alternatives for improving the District’s capital projects, existing facilities, programs and operating procedures; manages District assets to provide defined levels of service at the lowest life cycle cost while maintaining an acceptable level of risk; conducts water quality research and other research that benefits and advances scientific decision-making; and works to move the District toward sustainability in all facets of the District’s operations by optimizing the use of renewable, recyclable, eco-friendly materials, and reducing energy consumption and emissions from fossil fuels.

SERVICES PLANNING - This planning group leads the District’s Facilities Planning effort. The Facilities Plan is generally developed on a ten-year cycle, and provides a foundation for the District’s Capital Improvements Program. The development of a facilities plan requires ongoing data collection and analysis. The projects associated with this effort address plan development, outreach, data gathering, and data analysis issues.

RESEARCH – The research group works with industry partners and universities to conduct sound scientific research to achieve maximum operating efficiencies, reduce the District’s carbon footprint and energy consumption, identify renewable energy opportunities, implement new, more efficient technologies, and mitigate threats to current District operations.

ASSET MANAGEMENT - The District’s Asset Management Program is a core component in managing infrastructure, facilities, equipment and other assets to achieve organizational objectives. Asset management aims to: use assets to provide defined levels of service; maintain a level of risk acceptable to the organization; and achieve service level and risk objectives at the lowest life cycle cost . Asset management involves analysis and continuous improvement of business processes, data, information systems and organizational resources in the areas of planning, design, construction, operations, and maintenance.

SUSTAINABILITY – In addition to meeting regulatory requirements, the District is committed to implementing sustainable practices that have a positive impact on the environment. Since 2010, the Planning, Research & Sustainability Division has led the District’s efforts to achieve sustainability in all facets of the District’s operations by optimizing the use of renewable, recyclable, and eco-friendly materials, and reducing energy consumption and emissions from fossil fuels.

Executive Director

Kevin Shafer, P.E.

Planning, Research &

Sustainability

Timothy Bate, P.E.

PLANNING, RESEARCH & SUSTAINABILITY DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015

Budget


Management 5 4 4 4 0 Non-represented 12 14 14 14 0 Represented 1 1 1 1 0 Total 18 19 19 19 0


Planning, Research and

Sustainability 1,728,443 2,795,738 2,450,768 2,479,944 (315,794) -11.3%

Gross Division Total $1,728,443 $2,795,738 $2,450,768 $2,479,944 ($315,794) -11.3%

Charges to Capital (1,482,096) (1,535,072) (1,554,656) (1,658,747) (123,675) 8.1%

Net Division Total $246,347 $1,260,665 $896,112 $821,197 ($439,469) -34.9%

USES BY EXPENDITURE TYPE Fixed Assets - - - - - 0.0%


Contractual Services 344,199 1,290,319 941,495 882,874 (407,445) -31.6% Materials & Supplies 10,127 10,100 13,954 34,900 24,800 245.5%

Gross Division Total $1,728,443 $2,795,738 $2,450,768 $2,479,944 ($315,794) -11.3%

Charges to Capital (1,482,096) (1,535,072) (1,554,656) (1,658,747) (123,675) 8.1% Net Division Total $246,347 $1,260,665 $896,112 $821,197 ($439,469) -34.9%

2016 Budget Notes and Changes from 2015

FIXED ASSETS The fixed asset account type includes transportation equipment, and machinery and other equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years. The PRS Division budget does not contain any fixed assets.

PERSONAL SERVICES The Personal Services account group increased $66,851 over the 2015 budgeted level due to the funding of one previously authorized Asset Management Analyst position and the transfer of the Administrative Coordinator from the Water Quality Protection Division into the PRS Division. In the 2016 budget, the Educational Outreach Program Coordinator position moved to the Public Information, Intergovernmental Affairs, Educational Outreach cost center. The $1,562,170 that is budgeted includes salaries and salary increases for 20 full time employees.

CONTRACTUAL SERVICES In 2016, contractual services decreased by $407,445 from the 2015 budgeted level due to more conservative spending on green infrastructure initiatives. The $882,874 in contractual services includes funding for green infrastructure implementation projects, asset management planning projects, and on-site modeling services. Green infrastructure implementation comprises 79 percent of the total amount and asset management planning projects comprise 11 percent. Contractual Services also includes funding for staff travel, memberships, and certifications.

MATERIALS AND SUPPLIES The 2016 budget for PRS includes $34,900 for supplies for the FreshCoast summer intern program. With the increase of $24,800 from the 2015 level, the program will be able to reach new neighborhoods, replace rain garden plants where needed, provide more user training and install more rain barrels.

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2016 budgeted level increases by $123,675 from the 2015 budgeted level due increased workload for the 2050 Facilities Plan and other capital projects.

RECENT ACCOMPLISHMENTSEPA TECHNICAL ASSISTANCE AWARD The Division completed “Elements of a Green Infrastructure Maintenance Business Plan” under a US EPA technical assistance award. The project took a holistic approach to green infrastructure O&M, considering the needs of the region’s municipalities, best practices for operating and maintaining green infrastructure, job opportunities and associated training needs, and likely sources of potential funding. The process and recommendations are designed to be a model that can be replicated across the nation, and are also forming the basis for subsequent work to help better define long-term needs.

ENERGY PLAN The Division completed an Energy Plan that will help the District meet its 2035 Vision goal of net 100 percent of MMSD’s energy needs coming from renewable energy sources and 80 percent of those from internal renewable sources. Implementing the Energy Plan is also meant to produce a long-term, positive impact on MMSD’s budget and provides a foundation for 2050 Facilities Plan.

CAPITAL IMPROVEMENTS PROJECTS The Division made significant progress on a number of Capital Improvement Program projects. For example, $35.6 million was allocated to the Private Property Infiltration and Inflow (PPI/I) Reduction Program through 2015 including available stormwater best management practices (SBMP) funding. The PPI/I program is already half complete from a budgetary perspective. Twenty-five of the 28 municipalities are participating in the program and rehabilitation has been completed on 6,300properties. With the anticipated lag in program activity due to the necessary planning and outreach efforts, municipalities have committed to spending $21.6 million of the available $35.6million to-date with work plans continuing to be received on a monthly basis

In December 2013, three rows of 14 solar photovoltaic (PV) panels were installed on the south part of the District headquarters rooftop to help reduce the amount of power and energy that the District purchases. The electricity produced by the 42 solar PV panel system since the December 2013 installation date is 24,800 kilowatt hours; which represents 5 percent of the overall annual headquarters electricity consumption or about 55 percent of the building’s lighting needs. The solar panels add a renewable energy and carbon reduction component to the headquarters. The solar panel project also received an $8,490 grant from Focus on Energy.

MMSD stormwater management planning for the 30th Street Industrial Corridor (Corridor) was completed under the integrated regional stormwater management program. The planning effort assembled a green approach to developing solutions to chronic urban stormwater flooding in the Corridor and facilitated implementation of the design of the first stormwater flooding reduction project, the North Corridor stormwater basins

PLANNING The Division completed assigning critical elevations to each active municipal connection to the District’s conveyance system. The Division also completed profiles for all of the District’s conveyance systems.

The Division kicked off MMSD’s first ever Facilities Plan based on asset management principles that is anticipated to be completed in late 2017. This is believed to be the first large scale wastewater Facilities Plan to be based on asset management principles and will therefore be an industry leading document that may likely influence future regulatory requirements on how Facilities Planning is performed. The Facilities Plan will develop five Asset Management Plans (AMPs) for the five identified asset systems: Conveyance and Collections System, Water Reclamation Facilities and Biosolids, Watercourse and Flood Management, Green Infrastructure, and Administrative Facilities. Asset Management Plans are long-term plans that outline the management strategies for each asset system and the necessary investments required to provide a defined level of service in the most cost effective way. The AMPs will be developed as living documents that are updated with current information on asset performance and condition, risk, future demand for services, revisions to

Private laterals on 6,300

properties were rehabilitated

through the PPI/I program in

order to reduce the risk of

basement backups.

The division managed the

installation of solar panels on

the District Headquarters

building in order to reduce the District’s fossil fuel energy consumption.

regulatory requirements or changes in organizational objectives. The AMPs will improve the District’s ability to provide continuous planning using current information. The Division has responsibility for review and approval of (1) municipal and private sanitary sewer plans and (2) municipal and development stormwater management plans. To obtain approval, submitted plans must be consistent with MMSD rules and the currently approved Facilities Plan.



Lean and Efficient – Asset Management – Development of AM system plans through the 2050 Facilities Plan. The AM plans will evaluate the overall capability of asset systems to achieve the necessary services the District provides to stakeholders. The plans will identify areas at risk of achieving identified service goals and develop strategies to mitigate risks and accomplish goals. Identified strategies will be evaluated on an organization wide basis to optimize the best strategies across asset systems to achieve the greatest achievement of service goals in the most cost effective manner.

Tasks 2014 Result

2015 Target

2016 Target

Planning Efficient and timely review of sanitary sewer and stormwater plans as provided for in MMSD Rules. – Stormwater plan review within 10 days of first submittals, 20 days for resubmittals (% completed)

100% 100% 100%

Sewer plan review within 60 days (% completed) 100% 100% 100%

Asset Management Develop a strategy to communicate the asset management program framework and overall goals across the organization and keep staff informed of the asset management program

Completed April 2014

Schedule an outside consultant with asset management expertise to conduct an asset management workshop for the asset management executive steering committee to provide an overview of asset management principles, benefits and evidence of successful programs.

Training held March

2014

Develop a tracking tool to document progress in achieving the asset management strategy goals and make the tool available to all District staff on SharePoint

Created April 2014

Develop service element specific tasks and budgets to address data gaps that do not conform to defined asset data standards. Task will require both modifications to existing database information to meet defined standards and investigation and input of data where information is missing.

Completed June 2015

Develop an AM Staffing Plan to identify staff requirements to achieve tasks identified in the 2014-2018 AM Strategy

Completed July 2015

Develop District level of service categories and performance indicators to track achievement of organizational goals under the 2050 Facilities Plan

Completed June 2015

Develop asset hierarchy and class/type SOP’s for WRF and conveyance equipment assets

To be completed

October 2015

Create a risk evaluation and project prioritization scoring system that is tied to organizational objectives

January

2016

Water Quality Protection The division monitors point and non-point source pollution, conveyance system performance, and water quality in Lake Michigan and local rivers. This Division also provides laboratory services to meet the needs of the District. This Division is responsible for numerous reports required by the District’s Wisconsin Pollutant Discharge Elimination System (WPDES) permit. The Division contains five functional groups: Central Laboratory, Conveyance System Monitoring, Field Monitoring, Industrial Waste Pretreatment, and Freshwater Resources Monitoring.

SERVICES CENTRAL LABORATORY: The laboratory’s responsibility is to provide quality testing services to meet the District’s needs for environmental, product and process testing. These include supporting the District’s permit under the Wisconsin Pollution Discharge Elimination Systems (WPDES), the Industrial Waste Pretreatment Program (IWPP), Freshwater Resources Monitoring, Planning, Milorganite® marketing, plant operations and District projects. The laboratory is certified and accredited to perform regulatory environmental compliance testing and is the only municipal laboratory in the state to have achieved accreditations under the National Environmental Laboratory Accreditation Program (NELAP).

CONVEYANCE SYSTEM MONITORING: The District has over 300 various sensors, gauges and meters that are temporarily or permanently installed throughout the District to measure levels, flows, rain, toxic gases and a variety of other parameters. The Conveyance System Monitoring Group is responsible for analyzing and reporting the data as well as reulatory reporting of conveyance and groundwater data.

FIELD MONITORING: This group supports the District’s need for sample collection, field measurements and flow monitoring in the conveyance system and industrial settings. Their duties include calibration and maintenance of select monitoring equipment.

INDUSTRIAL WASTE PRETREATMENT: This group is responsible for implementatiohn and enforcement of the point source pollution control standards through the mandated Industrial Waste Pretreatment and Mercury Reduction Programs. They work primarily with industries; however, for mercury reduction, the engineers also work with dental offices, schools, and health care facilities. This group is also responsible for the administration of the user charge verification and billing activities.

FRESHWATER RESOURCES MONITORING: This group makes field measurements and collects surface water samples from nearly 100 locations throughout the Milwaukee area watersheds. They are responsible for the preparation of regulatory and program specific reports regarding this data. The water quality data are used to assess the impact of the conveyance system, treatment plant operations and District projects on local waterways.

Executive Director

Kevin Shafer, P.E.


Sharon Mertens

Industrial Waste, Freshwater Resources & Conveyance

System Monitoring Sharon Mertens

Central Laboratory Alfredo Sotomayor

WATER QUALITY PROTECTION DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015


Management 10 10 10 10 0 Non-represented 4 5 5 4 (1) Represented 48 47 47 46 (1) Total 62 62 62 60 (2)


Central Laboratory

2,048,974 2,151,346 2,164,323 2,195,189 43,844 2.0% Industrial Waste & Conveyance Monitoring

3,300,606

3,344,305

3,482,426

3,340,827

(3,477) -0.1%


Charges to Capital (1,605,196) (1,710,470) (1,411,338) (1,696,107) 14,363 -0.8%



Fixed Assets 13,213 - 105,194 146,360 146,360 100.0%

Personal Services 4,225,501 4,259,457 4,266,540 4,198,008 (61,449) -1.4%

Contractual Services 518,485 570,390 590,900 527,111 (43,279) -7.6%



Charges to Capital (1,605,196) (1,710,470) (1,411,338) (1,696,107) 14,363 -0.8%


2016 Budget Notes and Changes from 2015 FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The 2016 budget includes $89,860 for the purchase of two vehicles for the Freshwater Resources Monitoring group and $56,500 for the purchase a microwave digestion oven, fluorometer, sample receiving refrigerator, and a block digester for the Laboratory. PERSONAL SERVICES The $4,198,008 in Personnel Services includes salaries for the 60 full-time employees. In the 2016 budget the represented position of the Boat Operator was eliminated and the responsibilities shifted to a Water Resource Specialist. Also the position of the Administrative Coordinator’s salary was shifted to the PRS division. This Administrative Coordinator provides support to both divisions. CONTRACTUAL SERVICES With the $527,111 that is budgeted in Contractual Services the IWC cost center will operate and maintain the River Skimmer and provide corrective maintenance and repair service on an as needed basis for the District’s groundwater wells and water quality monitoring stations. In addition the Lab will use funds to contract for lab tests the District lacks the capacity to perform. Both cost centers budgeted funds for travel, memberships, and certifications within the Contractual Services accounts.

MATERIALS & SUPPLIES The Division’s Materials & Supplies budget is $664,538 in 2016. 47 percent of this if for the purchase of chemicals and supplies for the Laboratory. The remaining funds are for the purchase of equipment for the IWPP, rain gauges, real time water quality monitoring, lab monitoring, and portable flow monitoring programs. In 2015 the division entered into a contract to procure equipment at more cost effective prices which will be crucial since by the beginning of 2016 IWC will have in place 17 water quality stations to maintain. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The decrease of $14,363, an increase to the O&M budget, reflects a drop in monitoring and lab requests as part of capital projects.


RIVER SKIMMER PROGRAM The District’s river skimmer helps remove trash and debris from the surface of the area’s rivers and harbor near downtown. In 2014, the skimmer operated on the water for 105 days, removing 1,445 yards of debris in addition to many dead trees of various sizes. The skimmer crew is largely made up of trainees from the Milwaukee Community Service Corps. Eighteen young people were trained and employed on the skimmer in 2014.

CSOLOG MODEL The CSOLog model, a proprietary software program used to calculate the volume and duration of each combined sewer overflow, has gone through many iterations since its inception. All documentation to the model is currently being compiled into an operations manaul for CSOLOG.

H2S MONITORING In 2015, the District strategically used its Hydrogen Sulfide (H2S) Monitoring Program to address problems within the conveyance system. H2S can cause odor issues and is very corrosive and destructive to concrete sewers and manholes. The H2S data is organized and stored in the District’s HachWIMS database and is electronically distributed to key personnel when limits are exceeded at the various locations that are monitored. Currently, MMSD staff are planning to utilize the H2S data collected to assist with asset management.

HIGH STRENGTH WASTE The District continues to develop its program to accepts non-toxic waste with high concentrations of biochemical oxygen demand (BOD) and chemical oxygen demand (COD) at the South Shore Water Reclamation Facility. Food waste is a target but other sources may be used as well. The District hopes to use this program to ensure a steady supply of waste to be used for our anaerobic co-digestion program that will help the District achieve its 2035 Vision goal of energy independence.

IMPROVED EFFICIENCIES The laboratory’s new inductively-coupled plasma (ICP) emission spectrophotometer is now operational. The new instrument uses less gas, resulting in lower costs. To further improve efficiency and worker safety in this area, the laboratory is switching to block digestion sample preparation for metals analysis.

In 2014, the skimmer operated on the water for more than 105

days and collected 1,445 yards of debris.



Accountable- As creaters and managers of large data sets within the District, the Division will help evaluate the District’s use of Open Data to increase transparency and access to District data on the website.

Task 2013 2014 Target

2015 Target

Requests for District data responded to in 24 hours; for equipment 5 business days 100% 100% 100%

Compliance with DNR reporting requirements for complete and timely submittals. Yes Yes Yes

Related permit data are subjected to an internal review within the constraints of permit deadlines, including the investigation of outlier data. Yes Yes Yes

Data are reviewed on a timely basis under Quality Assurance & Quality Control standards. Yes Yes Yes

Laboratory services meet customer-defined expectations and produce data that are scientifically valid, defensible and of known and documented quality, as determined by the Laboratory maintaining the required laboratory certifications: NELAC, WDNR and WDATCP

100% 100% 100%

Deliverables meet customer-driven turnaround time targets. 95% 95% 95%

Deliverables meet regulatory-driven turnaround time targets including the following reports: WPDES CSO/SSO, Milorganite® 100% 100% 100%

Community Outreach & Business Engagement

The Community Outreach and Business Engagement division is responsible for providing a host of

oversight and support functions aimed at maximizing the use of District resources, while adhering to

statutory, Commission, and administrative policies in carrying out District business. Community

Outreach and Business Engagement provides graphics support, marketing of Milorganite®, public

information and outreach, and procurement services.

SERVICES The Community Outreach and Business Engagement Division develops and maintains strategically effective relationships with a broad range of publics, including customers, stakeholders, governments, news and social media, youth education, related organizations and employees.

Following is a brief description of the cost centers under the Community Outreach & Business Engagement division.

PROCUREMENT AND SUPPLIER DEVELOPMENT: Serves as the contracting authority of the District. The cost center conducts open, fair, and timely procurement processes founded upon the best practices in public purchasing. Additionally, the cost center is responsible for managing the Small, Women, Minority Business Enterprises (SWMBE) program, the Workforce and Business Development Resource program, and the District fleet.

PUBLIC INFORMATION, INTERGOVERNMENTAL AFFAIRS, AND EDUCATIONAL OUTREACH: Creates and distributes timely, accurate and relevant information to the public and other audiences. It also manages the Rain Barrel program and the Household Hazardous Waste Collection Program, which helps minimize stormwater pollution.

MARKETING AND MILORGANITE®: Manages the Milorganite® program through coordination of its sales and marketing activities in an increasingly competitive fertilizer market.

GRAPHICS: Provides graphics design and production services, including electronic presentations, art, photography, and graphical layout.

Executive Director

Kevin Shafer, P.E.

Community Outreach and Business Engagement Jeff Spence

Procurement and Supplier Development

Jeff Spence

Public Information, Intergovernmental Affairs, and Educational Outreach

Jeff Spence

Marketing & Milorganite® Tisa Overman

Graphics

Jeff Spence

COMMUNITY OUTREACH & BUSINESS ENGAGEMENT DIVISION BUDGET SUMMARY

2014 Actual

2015 Adopted

Budget 2015

Estimate

2016 Budget

Change from 2015

Budget

% Change from 2015

Budget


Management 5 3 3 4 1 Non-represented 7 7 7 11 4 Represented 15 8 8 6 (2) Total 27 18 18 21 3

USES - OPERATING EXPENSES Procurement and Supplier Development 1,775,008 1,833,098 1,732,748 518,487 (1,314,610) -71.7% Public Information / Intergovernmental Affairs / Educational Outreach - - - 1,882,659 1,882,659 100.0% Graphics 162,352 174,849 176,288 184,067 9,218 5.3% Marketing & Milorganite® 3,229,248 2,994,978 3,235,396 3,137,045 142,067 4.7% Facilities Management 806,609 - - - - 0.0% Records Management 296,973 - - - - 0.0%

Gross Division Total $6,270,190 $5,002,925 $5,144,432 $5,722,259 ($1,163,325) 14.4%

Charges to Capital (340,267) (348,003) (333,197) (457,015) (109,013) 31.3% Net Division Total $5,929,923 $4,654,922 $4,811,235 $5,268,869 ($1,268,713) 13.2% USES BY EXPENDITURE TYPE

Fixed Assets - - 33,915 - - 0.0% Personal Services 1,613,893 1,209,300 1,205,509 1,515,733 306,433 25.3% Contractual Services 3,953,288 3,177,672 3,171,357 3,522,179 344,506 10.8% Materials & Supplies 703,009 615,952 733,651 684,347 68,395 11.1% Gross Division Total $6,270,190 $5,002,925 $5,144,432 $5,722,259 $719,334 14.4%


Net Division Total $5,929,923 $4,654,922 $4,811,235 $5,268,869 $613,947 13.2% FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division does not have any funding for fixed assets in 2016.

PERSONAL SERVICES The $1,515,733 in Personal Services includes funding for salaries for the 21 full-time employees. The $306,433 increase from the 2015 budgeted level is partly due to salary increases and partly due to the addition of the Public Information, Intergovernmental Affairs, and Educational Outreach cost center. With the addition of the new cost center to the Division, the Division gains one Intergovernmental Coordinator, one Public Information Manager, one Project Manager – Landscape Architect, and two Outreach Program Coordinators. In the Procurement and Supplier Development cost center, one represented Buyer/Data Clerk position is eliminated and one non-represented Procurement Specialist position is created. To offset the increase in position count, the Procurement and Supplier Development Manager position is authorized but unfunded, and two vacant positions - the Administrative Coordinator – Procurement and the Shipping Clerk – are eliminated.

CONTRACTUAL SERVICES The $3,522,179 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. The Household Hazardous Waste Collection Program and the

Rain Barrel program are both coordinated through the Division and the contract services to administer both programs are budgeted in the Division. In 2016, the contractual services increase by $344,506 over the 2015 budgeted level because of the addition of advertising and media buying services in the Public Information, Intergovernmental Affairs, and Educational Outreach cost center, as well as the $199,887 increase for offsite packaging contract in the Marketing and Milorganite® cost center. The packaging contract increased because of recent years’ experience with an increased demand for packaged product.

MATERIALS & SUPPLIES The materials and supplies account group includes printing supplies for the Graphics cost center as well as general office supplies for the other cost centers. The 2016 budgeted level increases by 11 percent from the 2015 budgeted level due in part because of the purchase of new diverter kits for the rain barrel program.

CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2016 budgeted level increases $109,013 over the 2015 budgeted level partly due to the addition of the Public Information, Intergovernmental Affairs, and Educational Outreach cost center, whose staff charges time to advertising and outreach for capital programs such as the Green Solutions and Private Property Inflow and Infiltration Reduction program as well as time for overseeing the Greenseams® capital program.


In 2015, the Communications group partnered with the Planning, Resources and Sustainability division to award monthly Green Luminaries awards. Recipients of the award are titled “Green luminaries” who ultimately help protect our rivers and Lake Michigan by adapting practices that harvest rainfall for other uses or mimic nature by draining it into the ground to reduce water pollution.

In 2015, the Greenseams® program, managed in the Public Information, Intergovernmental Affairs, and Educational Outreach cost center, secured its 100th property. Greenseams® is a flood management program that permanently protects key lands containing water absorbing soils. The program makes voluntary purchases of undeveloped, privately owned properties in areas expected to have major growth in the next 20 years and open space along streams, shorelines and wetlands.

The Marketing and Milorganite® cost center had a number or successes in 2015. For example, the cost center re-introduced the five-pound bag to help sell to a broader audience, and increased the number of retail outlets on the West coast by 300 stores. Retail sales are an important component of Milorganite® sales as the professional turf market plateaus. The cost center also implemented a new sales and inventory software that will increase efficiency for the Customer Services Coordinators. Finally, the cost center continued with the successful rain barrel program; since the program started in 2004, the program has distributed over 21,000 barrels. The Procurement and Supplier Development cost center increased efficiency by launching the online bidding software for capital projects. The cost center is now working on implementing an online Request for Proposals system. The cost center oversaw the Household Hazardous Waste Collection Program which anticipates collecting and safely disposing of over 800,000 pounds of household hazardous waste. The cost center managed the successful Workforce Development Training and Resource Program, which helps build the capacity of local firms to better compete for District contracts. The program also includes the Regional Internships in Science and Engineering component, which recruited and placed 15 local college students in summer internship positions with local engineering and green infrastructure firms. Finally, the cost center created a draft of the Green Infrastructure Workforce Implementation Framework, to ensure that the local workforce is trained for upcoming green infrastructure work.


Objective 2014 Result 2015 Target 2016 Target

The Procurement and Supplier Development cost center manages and monitors the District’s SWMBE program. Recognizing its role as a major regional economic player, the District’s policy is to spend twenty percent of its procurement with Small, Women, and Minority-Owned Business Enterprises (SWMBE) . The participation goal further specifies that 13 percent of the purchase orders or contract awards should be with certified minority -owned businesses, 5 percent with certified small businesses, and 2 percent with cert ified women-owned businesses.

Small business enterprise participation 2.5% 5% 5%

Women-owned business enterprise participation 1.9% 2% 2%

Minority-owned business enterprise participation 12.5% 13% 13%

The Marketing cost center tries to increase sales in all market segments, including retail and professional, as well as manage inventory levels to ensure safety at plant facilities and cost -effective disposition.

Net Revenue (in millions) $7.99M $7.84 $7.83

Tons Sold 38,151 38,532 39,362 Average Dollar Value of Sale per Ton $127.29 $132.79 $158.14

Ratio of Sales to Cost Center Expenditures 2.49 2.46 2.50

The District seeks to communicate and engage its customers and stakeholders in the many initiatives that it undertakes so that it is viewed as a partner in the goal of water quality, rather than simply as the agency that treats sewage.

Improve external and internal coordination and communication

Launch new mmsd.com website

Create a consolidated

division for outreach

Create Communications

Plan

Number of Events by Type: Academia 56 Events 70 Events 80 Events

Conferences 30 Conferences 45 Conferences 50 Conferences Partnership Events 22 Events 25 Events 25 Events

Presentations and Sewer School 27 Presentations 40 Presentations 50 Presentations Community Events 65 Events 70 Events 70 Events

Regional Events 6 Events 8 Events 10 Events


Collaborative – In 2016, the Public Information, Intergovernmental Affairs, and Educational Outreach cost center will partner with local economic development organizations to clarify and quantify the District’s impact on the local economy. The Procurement and Supplier Development cost center will evaluate areas of need for the future workforce and tailor its programs to help meet those needs. The Public Information, Intergovernmental Affairs, and Educational Outreach cost center will also develop and implement a Communications and Outreach Plan to increase citizen awareness and knowledge of core District services and programs. The cost center will continue to explore online tools and other options to increase public engagement and feedback on District programs and issues. The Graphics and Procurement and Supplier Development cost centers will play pivotal roles in carrying out the Outreach Plan.

Lean and Efficient – In 2016, the Marketing and Milorganite cost center will explore ways to increase revenue.

Accountable – In 2016, the Public Information, Intergovernmental Affairs, and Educational Outreach cost center will help evaluate the District’s use of Open Data to increase transparency and access to District data on the website.

Other Expenditures

Fringe Benefits The fringe benefits accounts cover the cost of providing insurance benefits to active employees including medical, dental, vision, life, and disability insurance, unemployment and workers’ compensation, Social Security and Medicare, as well as the City of Milwaukee’s Employee Retirement System contributions. Retiree benefits funded through the fringe benefit account include health and life insurance.

2014 Actual

2015 Adopted

Budget 2015

Estimate 2016


% Change from 2015

Budget Retirement System Contribution $1,401,480 $1,379,609 $1,434,024 $1,532,962 $153,353 11.1% Group Health Insurance 3,195,443 2,942,898 3,110,263 3,200,000 257,102 8.7%

Group Life Insurance 169,226 190,983 179,438 190,983 0 0.0% Worker's Compensation Insurance 260,033 175,000 340,925 200,000 25,000 14.3% Social Security 1,311,896 1,289,799 1,155,456 1,327,784 37,984 2.9%

Unemployment Compensation Insurance 8 30,000 3,379 30,000 - 0.0%

Group Dental Insurance 166,491 200,000 174,132 175,000 (25,000) -12.5% Disability Insurance 37,725 58,848 34,694 40,000 (18,848) -32.0%

Active Employee Subtotal 6,542,302 6,267,137 6,432,312 6,696,729 429,592 -7.0%

Group Health Insurance - Retiree 5,094,246 5,027,654 4,425,274 5,100,000 72,346 1.4% Group Life Insurance - Retiree 133,865 150,396 136,850 150,396 - 0.0% Retiree Subtotal 5,228,111 5,178,049 4,562,124 5,250,396 61,951 -5.5%

Fringe Benefit Total $11,770,413 $11,445,186 $10,994,436 $11,947,124 $501,938 4.4% RETIREMENT SYSTEM CONTRIBUTION The District is a member agency of the City of Milwaukee Employee’s Retirement System (CMERS). CMERS is funded through two methods: employer contributions and member (employee) contributions. In 2013, CMERS adopted policy for the employer contributions to create a budget stabilization method of funding. The change requires that employers make contributions to the system for a five-year period based on a set percent of payroll regardless of any individual year’s funding ratio, versus doing an annual review of funding status compared to funding thresholds as was done in the past. This allows predictability for budgeting for all agencies participating in the retirement system. At the end of the five-year period, a review will be done to determine the next five year-period’s funding percent requirements. Currently, the annual percent is 8.25 percent of payroll, and this will remain in place through 2018. In addition to the employer contribution, District staff make member contributions through payroll deductions. For all staff hired before 1/1/2014, the deduction is 5.5 percent of payroll. For staff hired on or after 1/1/2014, the deduction is 4 percent. The change relates to plan design changes adopted by CMERS beginning 1/1/2014.

HEALTH CARE Insurance contracts are negotiated by the District to ensure that adequate insurance coverage is provided to employees at the best possible rates. The cost of insurance is funded through a combination of District and employee contributions. Employee portions of insurance premiums are collected through payroll deduction. The District is self-funded for active and retiree healthcare. In order to protect the District from volatile expenditures related to catastrophic claims, the District subscribes to a stop loss policy that takes effect after $150,000 has been paid in claims for a single member. Since 2005, the District has averaged two members reaching the stop loss threshold each year.

ACTIVE EMPLOYEES The 2016 budgeted levels are based off of the expected 2015 year-end actual expenditures with a 6.5 percent escalator. The escalation factor is based on medical cost trend.

OTHER POST-RETIREMENT BENEFITS District Commission policy includes retiree health insurance and life insurance, with benefit levels based on date of hire and management or represented status. The District funds its retiree healthcare obligation on a pay as you go basis. As of January 1, 2014 and 2013 the District's annual Other Post-Retirement Benefits cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. Funding status details are available in the District’s CAFR. The 2016 budgeted levels are based off of the expected 2015 year-end actual expenditures with a 6.5 percent escalator. The escalation factor is based on medical cost trend.

OTHER In addition to the increases in healthcare insurance, group dental insurance for active employees decreases 12.5 percent to reflect the actual past experience of the last three years. Similarly, Workers’ Compensation insurance increases 14.3 percent to reflect actual past experience.

Charges to Capital

Charges to capital reflect adjustments to cost center operating expenses, including indirect charges and laboratory charges for work performed for capital projects and facilities planning purposes, and expenditures under the Veolia Water Milwaukee operating contract that relate to the Capital Improvement Program. These accounts are designed to offset operating expenses and appropriately transfer the expenses. In 2016, charges to capital are increase 2.8 percent from the 2015 level.

Charges to Capital 2014

Actual 2015

Budget 2015

Estimate 2016 Budget Change from 2015 Budget

% Change from 2015

Budget

Direct Charges to Capital (4,073,924) (3,863,443) (3,995,168) (3,894,250) (30,807) 0.8% Indirect Charges to Capital (8,872,515) (8,194,256) (8,313,580) (8,586,834) (392,578) 4.8% Charges to Veolia (879,286) (939,296) (939,296) (951,000) (11,704) 1.2% Charges to Capital – Other (471,623) (523,805) (523,805) (471,623) 52,182 -10.0% Charges to Capital - Total (14,297,348) (13,520,800) ($13,771,850) ($13,903,707) ($382,907) 2.8%

DIRECT CHARGES TO CAPITAL From 2015 to 2016, direct charges to capital increase by 0.8 percent. Direct charges relate to District labor hours associated with work on capital projects.

INDIRECT CHARGES TO CAPITAL The District’s indirect rate assigns costs chargeable to capital projects and allocates indirect costs on the basis of direct salaries and wages. Indirect costs are costs that are not identified specifically with a particular unit process or final cost objective, including administrative support costs and fringe benefits. The final capital projects indirect cost rate is audited each year by the District’s outside auditor and a carry-forward adjustment is made for any surplus or deficit of funds recovered from the indirect cost rate.

CHARGES TO VEOLIA In 2016, Veolia will continue to work on a number of District projects and charge its staff time to the Capital Budget. As such, the budgeted Charges to Veolia are similar to the 2015 level.

CHARGES TO CAPITAL - OTHER These costs include lab analyses for capital projects. The District projects a decreased workload in 2016 from the 2015 level.

Unallocated Reserve The Unallocated Reserve fund provides a reserve for unanticipated or increased expenses that may arise

during the year. The District’s Commission must authorize the use of funds from the Unallocated Reserve. Once approved, funds are then transferred from the Unallocated Reserve to specific cost center line item

accounts rather than being expended directly.

2014

Actual

2015

Budget

2015

Estimate

2016

Budget Change from

2015 Budget

% Change

from 2015

Budget

Budgeted Unallocated Reserve 0 2,168,330 0 2,109,731 (58,599) -2.7%

*The 2015 estimate reflects the amount that has been transferred into Divisions. Actual expenditures are presented in the Divisions in all other expenditure charts.

The 2016 budgeted level is approximately 2.41 percent of net division expenditures, complying with policy requiring the Unallocated Reserve to be budgeted between 2.0 percent and 3.5 percent of net division expenditures.

The 2016 Unallocated Reserve includes the District’s funding for salary adjustments that will be transferred to cost centers

once approved.

75

Capital Budget The Capital Budget funds the District’s investment in long-term assets supporting the District’s mission to cost-effectively protect the quality of the region’s water resources.

Capital Improvement Program and the Long-Range Financing Plan Expenditures funded through the Capital Budget are typically for multi-year projects; therefore, a critical facet of the District’s capital budgeting process is planning. As such, the District prepares a Capital Improvement Program (CIP) to ensure that the District appropriately plans for future capital needs. The CIP includes all known projects and identifies their start and end-dates by phase. As new projects are identified each year, they are included in the CIP. Depending on priorities and financial constraints, projects in the CIP may be advanced or delayed to meet objectives. Projects included in the CIP are primarily identified through the District facilities plans, the Central Metropolitan Interceptor Sewer improvement program, watercourse and flood management, and water reclamation facility upgrades. These are described below.

2020 FACILITIES PLAN – ADAPTIVE IMPLEMENTATION SCHEDULE In 2007, the District completed a ten-year facilities plan to address future population, land use, and wastewater asset needs within the District’s service area, using the watershed approach, to identify capital improvements necessary for wastewater, conveyance, treatment, and watercourse and flood management needs through 2020.

WATERCOURSE AND FLOOD MANAGEMENT There are six watersheds within the District’s service area: the Kinnickinnic River, Lake Michigan Tributary Drainage, the Menomonee River, the Milwaukee River, Oak Creek, and the Root River. The District has discretionary authority to perform flood mitigation on these waterways. This work includes rehabilitation and removal of concrete, deepening and widening of channels for flood management purposes, and construction of detention basins, pumping stations, and levees.

ASSET MANAGEMENT AND ANNUAL REQUESTS Each year as new issues are identified by the District, new projects may be added to the CIP.

COST REIMBURSEMENT CAPITAL PROGRAMS The District administers several capital programs that do work that benefits the District’s system, some of which include municipal cost reimbursement programs.

Projects in the CIP reflect current cost and scope estimates as of a point in time in the individual project’s life cycle. The current cost estimate for individual projects is expressed in the budget-year dollars.

Long-Range Financing Plan The long-range financing plan approved by the Commission identifies the level of funding from each source for capital expenditures for the period 2016 through 2021. The District’s long-range financing plan uses projections that are preliminary and may change. The District believes that it has identified the major capital projects expected to be required to comply with current statutes and regulations applicable to the District and the services it provides and further believes that, in the absence of significant changes to these statutes and regulations, the current projections will be sufficient to allow the District to meet its mandates and fulfill its statutory requirements. The following objectives are the cornerstone of the District’s long-range financing plan:

x 25 percent cash financing of project expenditures over the six-year financing plan x Outstanding debt no more than 2.5 percent of equalized property value

The 2016 long-range financing plan estimates $596,169,000 in project expenditures and $718,554,000 in debt service expenditures for a combined total of $1,314,723,000 in capital expenditures from 2016 through 2021.

2016 Capital Budget Revenues The main sources of revenue for the capital program are the tax levy and ad valorem based billings to non-member communities. The 2016 Capital Budget includes a tax levy increase of 2.50 percent as compared to a 4.0 percent increase projected in the long-range financing plan in the 2015 Capital Budget. In addition, the District receives low-interest Clean Water Fund Program (CWFP) loans and issues its own general obligation bonds to finance capital expenditures. In 2016, debt financing provides 58.6 percent of overall financing of capital project expenditures. Other sources of funds include federal and state aid, interest income, and the use of available funds on hand.

The 2016 Capital Budget includes a tax rate estimate of $1.74 per thousand dollars of equalized valuation. District and nonmember equalized value decreases are 0.74 percent and 2.85 percent, respectively, for 2016 and then are projected to increase 3.0 percent for 2017, 3.0 percent for 2018 and 3.0 percent for the remaining years in the six-year plan.

For further detail on the District’s capital revenues, please see the Capital Sources of Funds section.

Expenditures The District has four capital expenditure accounts: Water Reclamation Facilities, Conveyance Facilities, Watercourse and Flood Management and Other Projects and Programs. In the 2016 Capital Budget, Water Reclamation Facilities and Conveyance Facilities comprise 14 percent and 5 percent, respectively, of the budget. Watercourse and Flood Management projects total 11 percent of expenditures, and Other Projects and Programs total 11 percent of expenditures.

The largest portion of the District’s capital expenditures is in the six-year plan for debt service payments. In the 2016 Capital Budget, debt service payments, net of amounts available in debt service funds, are 55 percent of expenditures.

For further detail on the District’s capital expenditures, please see the Uses of Funds section of this Capital Summary, each capital account section, and the Debt Service section.

Impact on the Operating Budget The District undertakes life-cycle costing in the analysis of capital projects. This includes identifying, when possible, what the change in O&M costs will be following the completion of each capital project. These analyses are useful not only for decision-making to select the lowest life-cycle cost option among competing alternatives, but also for properly forecasting expenditure changes to be included in future O&M budgets. Operating and maintenance costs should be carefully considered in deciding which projects move forward in the CIP.

The majority of the District’s CIP is focused on the replacement, rehabilitation or improvement of existing water reclamation and conveyance infrastructure rather than the construction of new facilities to expand capacity. As such, it is often the case that replacements do not result in changes from the current level of budgeted O&M expenditures. In project summaries, the O&M impact will be stated as “no significant impact”.

When the District CIP undertakes new initiatives or new technologies, it is more likely to result in new O&M expenditures or incremental changes to ongoing O&M expenditures. In CIP project summaries, the O&M impact section will describe the changed condition, start date, and annual budget impact.

In addition, the District’s capital budget includes capital programs which support the District’s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. In such cases, the District’s capital expenditures would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District’s System.

Highlights of the 2016 Capital Budget The highlights of the 2016 Capital Budget and long-range financing plan can be focused in four main areas: capacity, asset management, sustainability, watercourse and flood management.

CAPACITY: South Shore Capacity Improvements, Mill/Green Bay/Green Tree MIS Relief ASSET MANAGEMENT: Jones Island and South Shore Building Roof Replacement, Milorganite Facilities Improvement

Phase III, Aeration Basin Concrete Rehabilitation, Conveyance Gate Rehabilitation, Interplant Pipeline Improvements SUSTAINABILITY: Fresh Coast Green Solutions, Green Solutions WATERCOURSE AND FLOOD MANAGEMENT: 30th Street Corridor, Underwood Creek Phase II, Kinnickinnic River Flood

Management, and the Greenseams® program

Guide to the 2016 Capital Budget The 2016 Capital Budget is divided into six sections: Summary, Water Reclamation Facilities, Conveyance, Watercourse and Flood Management, Other Projects, and Debt Service. The Summary section provides an overview of Capital Budget sources and uses of funds and discusses how capital project estimates are made and refined during the life-cycle of a capital project. The following four sections organize the capital accounts and describe all projects funded in 2016, as well as any changes in project scope or total project cost from the 2015 Adopted Capital Budget. In the 2016 Capital Budget, each project was brought to current dollars with an escalation factor of 2.71 percent. The final section provides information on the District’s debt obligations and debt service payments.

2016 Capital Budget Summary of Revenues and Expenditures (in thousands)

Revenues and Expenditures

2015 Adopted Budget

2015 Estimate

2016 Proposed

Capital Budget

Change from 2015

Budget

Percent Change from 2015

Budget

Revenues

Tax Levy 93,639 93,639 95,980 2,341 2.5%

Non-member Communities 30,222 29,795 30,550 328 1.1%

Federal and State Aid 3,612 2,248 2,154 (1,458) -40.4%

State Loans 22,100 15,785 23,600 1,500 6.8%

Interest and Other Income 3,680 1,399 4,991 1,311 35.6%

District Bonds 100,000 100,000 0 (100,000) -100.0%

Bond Premium 0 7,449 - $0 -

Total Revenues 253,253 250,315 157,275 (95,978) -37.9%

Available Funds

Use of (Additions to) Available Funds (38,478) (40,500) 58,990 97,468 -253.3%

Total Revenues and Available Funds $214,775 $209,815 $216,265 $1,490 0.7%

Expenditures

Capital Program Group

Water Reclamation Facilities 29,651 33,331 30,175 524 1.8%

Conveyance Facilities 13,997 11,961 10,615 (3,382) -24.2%

Watercourse and Flood Management Projects 20,816 18,263 24,493 3,677 17.7%

Other Projects 28,950 24,790 24,288 (4,662) -16.1%

Total Capital Program Group Expenses $93,415 $88,345 $89,571 ($3,844) -4.1%

Debt Services Payments*

From Tax Levy and Available Funds 96,110 96,220 100,309 4,199 4.4%

Reserved in Debt Service Fund 25,250 25,250 26,385 1,135 4.5%

Debt Service 121,360 121,470 126,694 5,334 4.4%

Total Expenditures $214,775 209,815 216,265 $1,490 0.7%

Tax Rate per $1,000 of Equalized Value $1.71 $1.71 $1.74 $0.03 1.5%

Note: The sum of rounded components may not equal the total due to rounding

2016 Capital Budget Long-Range Financing Plan

(Dollars in thousands)

Estimate

Six-Year Capital Improvements Program

Six-Year % of

2015

2016 2017 2018 2019 2020 2021

Total Total

Beginning balance $48,155

$88,611 $29,320 $26,941 $25,686 $30,158 $31,865

$88,611 Add:

Tax levy 93,639

95,980 99,819 103,812 107,964 112,283 116,774

636,633 48%

Non-member Billings 29,795

30,550 31,462 33,803 34,232 34,806 37,402

201,926 15%

Federal and State Aid 2,248

2,154 1,419 1,433 1,447 1,461 1,475

9,389 1%

Loans 15,785

23,600 16,804 1,374 35,326 41,407 44,799

163,310 12%

Interest & other 1,399

4,991 6,768 2,346 3,109 3,074 2,798

23,079 2%

District Bonds/Notes 100,000

0 44,191 48,715 36,866 39,538 57,629

226,940 17%

Bond premium (discount) 7,449

0 0 0 0 0 0

0 0%

Total revenues 250,315

157,275 200,464 191,482 218,944 232,569 260,878

1,261,277 96%

Use of (Additions to)

available funds (40,500)

58,990 2,378 1,255 (4,472) (1,707) (18,203)

53,446 4%

Total sources 209,815

216,265 217,712 192,738 214,472 230,862 242,676

1,314,723 100%

Less:

Water Reclamation Facilities 33,331

30,175 45,796 34,071 44,286 49,410 54,749

258,486 19%

Conveyance Facilities 11,961

10,615 11,408 18,428 26,362 33,404 34,850

135,066 10%

Watercourse 18,263

24,493 14,044 8,542 10,266 12,678 13,741

83,765 7%

Other Projects / Programs 24,790

24,288 20,275 22,131 19,009 16,217 16,932

118,852 9%

Adjustment 0

0 0 0 0 0 0

0 0%

Projects / Programs 88,345

89,571 91,522 83,172 99,923 111,709 120,272

596,169 45%

Existing MMSD debt 46,301

48,467 48,382 30,216 29,983 29,980 29,973

217,001

Future MMSD debt 0

0 884 4,470 8,082 11,107 14,732

39,275

State loans 75,169

78,227 76,923 74,880 76,485 78,064 77,698

462,278

Debt service 121,470

126,694 126,190 109,565 114,550 119,152 122,404

718,554 55%

Total uses 209,815

216,265 217,712 192,738 214,472 230,862 242,676

1,314,723 100%

Ending balance $88,655

$29,320 $26,941 $25,686 $30,158 $31,865 $50,068

$98,832 Tax rate / $1000 $1.71

$1.74 $1.76 $1.78 $1.80 $1.81 $1.83

% Change in Tax Levy 2.65%

2.50% 4.00% 4.00% 4.00% 4.00% 4.00% Annual % cash financing 44%

34% 17% 40% 28% 28% 15%

26%

G.O. debt at year-end $975,537

$901,389 $861,042 $856,826 $844,514 $836,943 $848,715 Debt as % of Eq. Value 1.70%

1.52% 1.41% 1.36% 1.30% 1.25% 1.23%

(1) 2015 beginning balance is net of $22.8 million reserved for municipal reimbursements within the following District capital programs: Private Property

I/I, Stormwater BMPs, and Green Solutions. 6-year cash financing % from 2016-2021 reflects disbursement of these reserves from cash financing sources.

(2) Tax levy growth limited to 2.5 percent for 2016 and 4 percent thereafter. To achieve tax rates shown, available working capital is placed in a debt service fund to abate the tax levy as necessary.

(3) Change in District and non-member equalized value is 0.74 percent and 2.85 percent respectively for 2016, 3 percent for 2017, 3 percent for 2018 and 3 percent thereafter.

(4) Investment of available funds at 0.6 percent for 2015, 2 percent for 2016 and 3 percent thereafter. (5) Future District bond issues structured as 20-year level debt service at 4% for 2016 and 5% thereafter.

(6) $100 million of 2015A District bonds applied to expenditures of $15.3M in 2014, $48.9M in 2015 and $35.8M in 2016.

Uses of Funds The Capital Budget funds capital expenditures in four project-related capital expenditure accounts and debt service. The District defines a capital expenditure as the costs of acquiring, purchasing, adding to, leasing, planning, designing, constructing, extending, and improving all or any part of a sewerage system and of paying principal, interest or premiums on any indebtedness incurred for these purposes. In 2016, the District plans to spend $89.6 million on capital projects. This represents a 4.1 percent decrease from the 2015 budgeted level of $93.4 million. Of the total 2016 amount, the District will spend $30.2 million on Water Reclamation Facilities; $10.6 million on Conveyance Projects; $24.5 million on Watercourse and Flood Management Projects; and $24.3 million on Other Projects and Programs. Debt service increases by 4.4 percent over 2015 budgeted level, to $126.7 million, and is required for principal and interest payments on District bonds and State Clean Water Fund Program loans.

Capital Projects and Capital Programs Capital projects include any of several activities which are integrally related to and may result directly in the creation of or modifications to a District asset. Such activities include, but are not limited to, feasibility studies, facilities planning studies, engineering and design studies and plans, and actual construction. A single project may consist of one or more of these activities, and may or may not include construction.

A capital program, on the other hand, is a program that provides funding to the municipalities the District serves so that the municipality may do work that is mutually beneficial to both entities. The District administers several capital programs that do work that benefits the District’s system, some of which include municipal cost reimbursement programs.

PROJECT IDENTIFICATION The District uses Primavera Project Management software to plan and track the progress of the Capital Improvement Program. The software uses a project numbering system, and these project numbers are used throughout the budget. Because some capital projects are long-term and some contracts take many years to complete, in some cases the project number from the old system is contained in parentheses behind the project name in the project schedules. PROJECT DESCRIPTIONS For each project with anticipated expenditures in 2016, there is a description included in this document. Each of these projects also includes a table with summary information indicating the start and finish dates. Note that these dates represent the achievement of a major milestone, such as substantial completion, and funds may be included after these dates for close-out or other activities.

INFLATION AND COST ESTIMATES All projects listed in the 2016 Capital Budget reflect current (2015) dollars, with an escalation factor of 2.71 percent. The total project cost includes all estimated costs for activities to complete a single project. Depending on the total project cost, the inflationary impact may appear as a significant dollar increase. Inflation assumptions are included as a capital expenditure for each capital account in the years 2016-2021 to provide a reflection of overall expenditures to be financed in the out-years of the long-range financing plan. The methodology used is seventy-five percent of projected increases in the Consumer Price Index, although comparisons were made to other indices including the Engineering News-Record index for construction costs. This approach recognizes that a significant amount of project expenditures are committed in prior years. Moreover, project scope and schedule changes in out-years allow a degree of flexibility in the estimates. The 2016 Capital Budget includes each capital project’s total project cost in a table with each project description. The policy provides emphasis on project expenditure control for the total project cost. Projects in the financing plan have been included based on current cost and scope estimates. As these projects progress through their project life cycle, refinements are made to cost and scope.

An individual project’s total project cost may also increase as inflationary impacts are accounted for in future budget requests. A project’s stage in its life cycle will determine the impact of inflation. As an example, a project that is under construction has an inflation factor built into the construction contract, whereas a project under design will likely have cost increases solely associated with inflation of labor and material costs. The overall cost of the Capital Improvement Program will not be impacted by this annual adjustment, as noted above, inflation is accounted for in total in each capital account, not by project.

The current stage of a project within its life cycle is indicated by a basis of estimate. Each project in the Capital Improvement Program uses a basis of estimate, as defined below.

CE – Conceptual Estimate IP – In Progress Estimate PE – Preliminary Engineering Estimate BE – Bid / Award Estimate DE – Design Estimate

As projects move through the project life cycle, cost estimates become more refined. Cost estimates for capital projects can change dramatically for a variety of reasons. A project may be conceived in a facilities plan or by District staff with an initial cost estimate. As the project is further defined, the cost estimate may change as refinements are made, actual quantities of materials needed for the project are determined, and site conditions are more thoroughly investigated. Even after construction contracts are awarded actual construction costs may change through contract modifications for differing site conditions, contaminated soils, and field conditions that are different than anticipated in the design. Industry standards for a conceptual estimate, for example, indicate that the final construction amount may be 50 percent higher or 30 percent lower that the estimate. As the project is more developed, the cost estimates become more accurate. After the construction award is made, the average project’s final cost may be between plus or minus 5 percent of the original estimated total project cost, including the amount of the construction contract award.

Capital Project Life Cycle Expenditure Estimate Phase Fluctuation

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

Conceptual estimate +50%/-30%

Preliminary design +20%/-20%

Final design +10%/-10%

Current estimate

Contract +5%/-5%

Actual 0%

-30%

-40%

Normal project cost estimating progression

Debt Service For each District-issued general obligation bond or low-interest loan from the Clean Water Fund Program, State law requires the District to levy an irrepealable, direct annual tax in an amount sufficient to pay the principal and interest on the bonds or notes for the following year. The tax levy needed to fund the debt service may be reduced in any year by the amount of any surplus money in the Debt Service Fund available to pay debt service. Gross debt service to be paid in 2016 is estimated to be $126.7 million, of which $100.3 million is for tax supported obligations. For more information about Debt service, please refer to the Debt Service section in the Capital Budget.

Total Uses of Funds 2016 – 2021 Capital Improvement Program

$1,314,723,000

6%

9%

10%

20%

55%

0% 10% 20% 30% 40% 50% 60%

Watercourse and Flood Mgmt

Other Projects/Programs

Conveyance Facilities

Water Reclamation Facilities

Debt Service

$0

$50

$100

$150

$200

$250

2015 2016 2017 2018 2019 2020 2021

Estimate Budget Forecast

Tax levy increase2.85%

Tax levy increase2.50%

Tax levy increase 4%

Mill

ions

Capital Improvement Program 2015-2021

Water reclamation Conveyance Watercourse & Flood Mgmt Other projects Debt

Total Uses of Funds Capital Improvement Program 2014 - 2021 By Capital Account (Dollars in thousands)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2014 2015 2016 2017 2018 2019 2020 2021

Actual Estimate Budget Forecast

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$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2014 2015 2016 2017 2018 2019 2020 2021

Actual Estimate Budget ForecastTo

tal E

xpen

ditu

res

(dol

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ands

)


$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2014 2015 2016 2017 2018 2019 2020 2021


Tota

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s (d

olla

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ds) Watercourse and Flood Management

Projects

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2014 2015 2016 2017 2018 2019 2020 2021


Tota

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Other Projects and Programs

Federal and state aid, 1%

Interest & other, 2%

Use of available funds , 4%

Loans, 12%

Non-member billings, 15%

District bonds, 17%

Tax levy, 48%

0% 10% 20% 30% 40% 50% 60%

Capital Sources of Funds The District uses a variety of sources to fund the capital program with an objective 25 percent cash financing of project expenditures over the six-year financing plan, and outstanding debt no more than 2.5 percent of equalized property value for member communities. The District’s primary source of funds is the tax levy. Other sources of funds for the Capital Budget include:

- Non-member billings - Debt - Federal and State Aid - Interest and other income - Loans - Bonds

Total Sources of Funds 2016 – 2021 Long-Range Financing Plan

$1,314,723,000

Nearly half of the District’s long range financing plan revenue comes from the tax

levy.

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021


Tax

Rat

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Actual and Projected Tax Levies and Tax Rates 2009 - 2021

Tax Levy Tax Rate

Tax Levy

Source of Funds 2014

Actual 2015

Budget 2015

Estimate

2016 Proposed


% Change from 2015

Tax Levy $91,222 $93,639 $93,639 $95,980 $2,341 2.5%

The tax levy is the main source of revenue for the capital program. In 2016, the tax levy is $96.0 million, an increase of 2.5 percent over the 2015 budgeted level. The tax levy results in a tax rate of $1.74; an increase of $0.03 per $1,000 of equalized value from $1.71 per $1,000 for 2015.

Non-member Billings

Source of Funds 2014 Actual

2015 Budget

2015 Estimate

2016 Proposed


% Change from 2015

Non-member billings $27,095 $30,222 $29,795 $30,550 328 1.1%

Non-member billings come from ten communities outside the District’s legal boundary but within the District’s service area. In 2016, non-member billings are budgeted at approximately $30.6 million, an increase of $328,000 or 1.1 percent from the 2015 budgeted level.

Non-member communities are assessed a capital charge in place of levying a property tax. Non-member communities receive a billing rate credit for watercourse and flood management projects to which those communities are not tributary. All but three non-member communities (Caledonia, Muskego, and Thiensville) are tributary to the Menomonee River Watershed. A significant portion of watercourse improvements in the six-year Capital Improvement Plan are in the Menomonee River Watershed. As a result, billing rates for non-member communities tributary to the Menomonee River Watershed are expected to remain relatively close to the tax rate for member communities.

$29,795 $30,550 $31,462 $33,803 $34,232 $34,806

$37,402

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2015 Estimate 2016 Budget 2017 Forecast 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast

Rev

enue

(in

tho

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ds)

2015 - 2021: Non-member billings revenue

District Bonds


Actual 2015

Budget 2015

Estimate

2016 Proposed


% Change from 2015

District Bonds $0 $100,000 $100,000 $0 ($100,000) -100.0%

The District typically issues 20-year, level payment, long-term debt in the form of either its own general obligation bonds or low-interest Clean Water Fund Program loans from the State of Wisconsin. In 2015, the District plans to issue $100 million in general obligation bonds. From 2017 through 2021, the District plans to issue $226.9 million in new bonds.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2015 2016 2017 2018 2019 2020 2021

Estimate Budget Forecast

2015-2021: Debt as a % of Equalized Value Goal ≤ 2.5% The District's goal is to keep outstanding debt to no more than 2.5% of its equalized value of member communities

The District's forecast projects debt to be less than 1.7% of its equalized

value

Loans


Actual 2015

Budget 2015

Estimate

2016 Proposed


% Change from 2015

Loans $37,193 $22,100 $15,785 $23,600 $1,500 6.8%

Clean Water Fund Program loans are a funding source for most major conveyance and treatment plant capital projects. The Clean Water Fund Program, established under section 144.21 and 144.2415 of Wisconsin Statutes, provides low-interest loans for the construction of wastewater treatment works, non-point source pollution projects and estuary projects. In 2016, the District expects to receive approximately $23.6 million from State Clean Water Fund Program loans to fund capital projects and an additional $139.7 million from 2017 through 2021.

Interest and Other Income


Actual 2015

Budget 2015

Estimate

2016 Proposed


% Change from 2015

Interest and Other $5,183 $3,680 $1,399 $4,991 $1,311 35.6%

The District earns interest by investing its available cash balance. Other income includes revenues from the sale of capital assets, project-specific payments from private or public sources, and credit payments from the federal government for the District’s $50 million Build America Bond issues.

Federal and State Aid


Actual 2015

Budget 2015

Estimate

2016 Proposed


% Change from 2015

Federal and State Aid $4,174 $3,612 $2,248 $2,154 ($1,458) -40.4%

In 2016, the District expects to receive approximately $2.2 million in federal and state grants and other assistance, of which $1.2 million is state aid for tax exempt computers.

Water Reclamation Facilities The District operates two water reclamation facilities through a contract with Veolia Water Milwaukee. The facilities provide sewage treatment services for 18 cities and villages within the District’s legal boundary and to all or parts of 10 municipalities outside Milwaukee County.

$0

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2014 2015 2016 2017 2018 2019 2020 2021


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Jones Island Reclamation Facility Located on a peninsula in the Milwaukee harbor, the Jones Island Water Reclamation Facility is the oldest operating activated sludge plant in the country. Because of its historic leadership in wastewater treatment, the facility has been designated a National Historic Civil Engineering Landmark by the American Society of Civil Engineers and has been placed on the National Register of Historic Places. The plant was originally constructed in 1925, with a capacity of 85 million gallons per day (MGD). After expansions in 1935 and 1952, the treatment capacity increased to 200 MGD. With the completion of the Water Pollution Abatement Program (WPAP) in 1994, the daily maximum design flow at Jones Island for full secondary treatment is 300 MGD. The peak (hourly) design capacity for full secondary treatment is approximately 330 MGD; full capacity with 60 MGD in-plant diversion is 390 MGD. Current average daily flows to the plant are 112 MGD.

Wastewater treatment at Jones Island consists of preliminary/primary treatment, secondary treatment, and advanced treatment. In the primary treatment phase, wastewater is held in large circular tanks called clarifiers to allow heavier solids to settle to the bottom and lighter solids to float to the top. After removal of the solids, the water flows to the secondary or biological activated sludge process that uses bacteria and other microorganisms to consume soluble pollutants in the water. The wastewater then flows to the secondary clarifiers where the biosolids are removed for the production of Milorganite®, an organic fertilizer. In the advanced treatment process, clear water is chlorinated to kill any harmful bacteria. Before being discharged to Lake Michigan, any remaining chlorine is removed by adding a neutralizing chemical to ensure no fish toxicity.

South Shore Reclamation Facility Located to the south of Jones Island in Oak Creek, the South Shore Water Reclamation Facility was constructed in 1964 as a primary treatment facility with a capacity of 60 MGD. The plant was expanded in 1974, to include secondary treatment, advanced treatment involving phosphorus removal and nitrification to remove ammonia. The design capacity of South Shore is 250 MGD Maximum Day and 300 MGD Peak Hour. Current average daily flows to the plant are 100 MGD, mostly from the southern and western portions of the District service area. Sludge generated by the South Shore treatment process is either pumped via the interplant pipeline to Jones Island for processing into Milorganite® or sent to digesters at South Shore for anaerobic digestion. The digestion process destroys up to 30 percent of the solids and produces methane gas used to provide electricity for the plant.

The 2016 Capital Budget includes $30.2 million for work on various water reclamation facility projects. Please refer to project detail on the following pages for information on each project’s purpose, scope, cost estimate and impact on the O&M budget.

Sewage Treatment System Source: Environmental Protection Agency

Jones Island Water Reclamation Facility

Primary Treatment Primary treatment at Jones Island involves preliminary and primary treatment of incoming wastewater. Preliminary treatment removes large and untreatable material such as wood, rags, sand, and grit. Next, the preliminary-treated water is collected in large tanks, called primary clarifiers, which allows heavier solids to settle to the bottom of the tanks and lighter solids to float to the top. The goal of the process is to effectively remove material that can damage downstream equipment and solids that cannot be treated biologically.

ID #: Name: Phase Start Finish Cost J01008 Upgrade Primary Clarifier Mechanisms Design Feb-07 Dec-08 $818,189 Construction Sep-09 Dec-12 $3,888,622 Post-Constr. Jun-13 Dec-18 $565,660 Total $5,272,471 Previously Approved Total $5,093,517 Increase/(Decrease) $178,954

Project Description The purpose of this project is to increase the reliability and dependability of the eight primary clarifier mechanisms and to ensure full hydraulic capacity in the primary influent channels. The scope consists of the replacement of eight primary clarifier drive systems, gearboxes and scraper arm assemblies, and the installation of motorized weir gates on the clarifier inlet boxes. The increase in Total Project Cost is due to additional costs associated with unanticipated post-construction activities. No significant Operating Budget Impact is expected. ID #: Name: Phase Start Finish Cost J01015 JI Primary Clarifier Channel Improvements Prelim. Eng Jan-15 Mar-17 $258,051

Design Sep-12 Sep-23 $368,797

Construction Oct-13 Dec-24 $2,096,860

Total $2,723,708

Previously Approved Total $2,422,654

Increase/(Decrease) $301,054 Project Description The purpose of the project is to ensure maximum flow capacity of the primary influent channels at the Jones Island Reclamation Facility by preventing solids from settling and accumulating. The project scope consists of design and construction of a diffused air mixing system to replace the existing ineffective system. The new system is anticipated to include a new aeration blower, larger air piping, and an increase in the quantity of air diffusers. In addition, the primary sludge drain system will be evaluated to correct performance issues. Solids settling and accumulation result in unbalanced flow to the clarifiers which can result in wastewater treatment below capacity and jeopardize discharge permit compliance. The increase in Total Project Cost is due to the addition of a preliminary engineering phase to allow for a Computational Dynamic Model, as well as updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

Jones Island Water Reclamation Facility Secondary Treatment After the solids are removed in Primary Treatment, wastewater flows to the secondary or biological activated sludge process. In this process, primary treated effluent and return activated sludge are mixed (mixed liquor), and large amounts of air are pumped into this mixture to permit bacteria and other microorganisms to consume soluble oxygen-demanding pollutants in the water. The pollutants are broken down to mainly cell mass, carbon dioxide and water. This mixed liquor is then routed through the secondary settling basins where the biological solids settle.

ID #: Name: Phase Start Finish Cost J02007 Secondary Clarifier Drive Replacement Design Jul-07 Jul-09 $483,782 Construction Feb-10 Dec-14 $12,944,814 Post-Constr. Nov-15 Oct-16 $27,568 Total $13,456,164 Previously Approved Total $13,620,439 Increase/(Decrease) ($164,275)

Project Description The purpose of this project is to increase the reliability and dependability of all 33 secondary clarifiers at the Jones Island Water Reclamation Facility. The project will replace or rehabilitate existing clarifier drives and mechanism components, refurbish and replace existing motor control panels and local control panels, rehabilitate concrete supports, and recoat the clarifier mechanisms. The decrease in Total Project Cost is due to project staffing and updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J02012 Aeration System Diffusers Replacement Prelim. Eng Jun-15 Dec-16 $156,400 Design Oct-20 Mar-22 $433,633 Construction May-22 Jun-23 $3,085,255 Post-Constr. Jul-23 Apr-24 $6,077 Total $3,681,365 Previously Approved Total $3,548,256 Increase/(Decrease) $133,109

Project Description The purpose of this project is to improve the Jones Island Water Reclamation Facility aeration system. The project scope consists of the design, procurement, and installation of new ceramic diffuser plates in the East and West Aeration Basins. This equipment will improve the District’s ability to vary the amount of air used in the secondary treatment system, reducing the energy requirements of this system. The increase in Total Project Cost is due to increased design, project staffing and updated costs to reflect market conditions. This project is expected to have a positive Operating Budget Impact as a result of the reduced energy usage of the new diffusers.

ID #: Name: Phase Start Finish CostJ02013 East Plant RAS Header Replacement Design Jul-15 May-16 $348,291

Construction Oct-16 Jun-18 $1,770,564

Post-Constr. Aug-18 Apr-19 $4,000

Total $2,122,855


Increase/(Decrease) $585,856

Project Description The purpose of this project is to ensure the integrity and capacity of Return Activated Sludge (RAS) processing within the Secondary Treatment process. The project scope is to design and construct the replacement of the 48 inch, 140 foot long East Plant RAS steel discharge header pipe. The existing pipeline has experience multiple failures and is not operating at full capacity. Capacity constraints in the process may impact effluent quality and the ability to meet the District’s NPDES effluent permit limits. The increase in Total Project Cost is because of increased scope to investigate redundancy potential and the replacement of three RAS pumps. No significant Operating Budget Impact is expected.


Advanced Treatment The biologically treated water enters the final treatment process in preparation for discharge into Lake Michigan. During this process, sodium hypochlorite is used to disinfect the water. Disinfection is the selective destruction of disease-causing organisms including bacteria, viruses, and amoebic cysts. After chlorination, sodium bisulfite is fed into the waste stream to remove any chlorine residuals. Chlorine removal is necessary to ensure fully treated water is not toxic to fish. This fully treated wastewater, or plant effluent, is discharged into Lake Michigan.

ID #: Name: Phase Start Finish Cost J03004 JI Effluent Pump Replacement Design May-10 Jan-12 $302,667 Construction Apr-12 Nov-15 $2,654,717 Post-Constr. Dec-15 Apr-16 $5,543 Total $2,962,927 Previously Approved Total $2,912,929 Increase/(Decrease) $49,998

Project Description The purpose of this project is to increase the reliability and dependability of the Jones Island effluent pumping system. The project scope consists of evaluation, design, and construction for replacement or rebuilding of the four effluent pumps at the Jones Island Water Reclamation Facility. The current equipment is beyond its useful life. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.


Solids Processing Biosolids are removed in the primary and secondary clarifiers, and must be further processed and disposed of for beneficial reuse. Jones Island uses a state-of-the-art process for waste solids to produce an environmentally safe fertilizer, Milorganite®, which is marketed for public use. Milorganite® is composed of a blend of biosolids (sludge) from both Water Reclamation Facilities. The solids processing includes these individual processes necessary for Milorganite®: blending, thickening, dewatering, drying, warehousing, and shipping. Blending is the process of mixing the biosolids from different sources to form a uniform consistency for the downstream thickening units. Thickening and dewatering both minimizes the moisture content of the biosolids. After dewatering, biosolids are dried in a rotary drying unit. The dried biosolids go through a screening process to size the product to Milorganite® specifications. The Milorganite® is then stored in silos before shipping to customers or to the contracted packaging facility.

ID #: Name: Phase Start Finish Cost J04029 E/B Tank Mixing Compressor

Replacement Design May-11 Dec-13 $81,099

Construction Mar-14 Aug-15 $538,165 Post-Constr. Sep-15 Feb-16 $6,182 Total $625,446 Previously Approved Total $599,835 Increase/(Decrease) $25,611

Project Description The purpose of this project is to increase the reliability and dependability of the Jones Island Equalization and Blend tank mixing compressor system. Replacement of the compressors is needed due to their age and condition. The project scope consists of design and construction for replacing two compressors and water separators that supply air to mix the Jones Island Equalization and Blend tanks. The scope also includes replacing or majorly repairing air piping inside the Equalization and Blend Tank Number 1 and Number 2. Finally, the design will evaluate alternative technologies which could reduce project life cycle costs. The increase in Total Project Cost is due to increased construction costs and project staffing. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish CostJ04033 Design Feb-15 Jan-16 $240,008

Construction Jun-16 Nov-17 $1,945,417

Post-Constr. Feb-18 Jun-18 $12,577

Total $2,198,002


Increase/(Decrease) $24,276

D&D Drainage Piping & Quench Chambers

Rehabilitation

Project Description The purpose of this project is to reduce the probability of building drainage piping failures that cause safety hazards and damage to process equipment. The project will rehabilitate and replace building drainage piping on several floors of the Dewatering & Drying Building at Jones Island. This will include removing and replacing all floor drains, all drainage piping, and supporting systems. As part of design, there is scope to determine if the piping corrosion is due to leaks, hydrogen sulfide or other causes. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected. ID #: Name: Phase Start Finish Cost J04039 D&D Building Explosion Relief Panel

Replacement Design Oct-15 Dec-16 $400,196

Construction Apr-17 Jan-18 $2,542,303 Post-Constr. Feb-18 Jun-18 $4,772 Total $2,947,271 Previously Approved Total $2,067,099 Increase/(Decrease) $880,172

Project Description The purpose of this project is to ensure the safety of personnel and equipment within the Drying and Dewatering Facility. The project scope is to determine alternatives, design, and install replacement the existing fiberglass explosion relief panels that are at the end of their useful life. The increase in Total Project Cost is due to the inclusion of storage facility pressure relief panels at the recommendation of the Office of Contract Compliance and Veolia Water Milwaukee. No significant Operating Budget Impact is expected.

Jones Island Water Reclamation Facility Solids Manufacturing This process involves the disposal of scrap produced during solids processing and the production of Milorganite® product variations. Much like any production process, there are leftover materials or scrap. The leftover dried sludge from the production of Milorganite® must be disposed of or reused. One Milorganite® product is Greens Grade. The Greens Grade production involves exposing Milorganite® to another screening process to further reduce the particle size. This process is in response to golf course customers who want a smaller-sized particle for applications on the course greens. ID #: Name: Phase Start Finish Cost J04040 D&D Freight & Passenger Elevator

Rehab Design Oct-15 Jul-16 $299,100

Construction Oct-16 Oct-17 $1,496,186 Post-Constr. Dec-18 Mar-18 $7,959 Total $1,803,245 Previously Approved Total $0 Increase/(Decrease) $1,803,245

Project Description The purpose of this project is to ensure employee and public safety and efficient operation and maintenance of the Drying and Dewatering Facility. The project scope is to design and rehabilitate passenger elevator #1 and freight elevator #2. Both of these elevators have been in service for over 20 years and have experienced significant outages and are not consistently functioning as intended. The elevators are used by staff, for public tours, and to move large maintenance equipment. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected. ID #: Name: Phase Start Finish Cost

J04041 Milorganite® Facilities Improvement - Phase III

Design Apr-15 Apr-16 $458,953 Construction Sep-16 Nov-17 $6,167,779 Post-Constr. Jan-18 May-18 $19,993 Total $6,646,725 Previously Approved Total $5,427,313 Increase/(Decrease) $1,219,412

Project Description The purpose of this project is to maintain and improve the efficiency and effectiveness of the drying process in making Milorganite®. The project scope is to design and replace several components of the drying process required for the production of Milorganite®. Most of this equipment has been in service for over 20 years and has reached the end of its useful life. Failures in this process lead to a decrease in the production of Milorganite® resulting in less available product and increased costs for disposing of the material that is not converted into Milorganite®. Larger scope items to be addressed by this project include replacement of Main Recycle Screws #3 & #4; Recycle Bin Bucket Elevators #1 & #2; Wet Recycle Screws #28-1 & #28-2; and Recycle Bin Discharge Screws #58-1 & #58-2. The original scope included five additional screws that were moved to project J04043 due to the criticality of those screws. The increase in Total Project Cost is due to construction costs being higher than anticipated based on bids received. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04043 Replace Wet Recycle Screws 1 & 2 Design Sep-14 Feb-15 $129,857 Construction May-15 Apr-16 $1,896,286 Post-Constr. Jun-16 Sep-16 $5,448 Total $2,031,591 Previously Approved Total $0 Increase/(Decrease) $2,031,591

Project Description The purpose of this project is to improve the maintainability and reliability of the drying process train by replacing a Main Recycle Screw (No. 2) as well as two Wet Recycle Screws and two DRS Transfer Screws. These screw conveyors have been in service since the D&D facility was brought on line in about 1994, and the conveyors are reaching the end of their useful service life. These screws are critical to the production of Milorganite® and failure of these systems could lead to a reduction in the amount of biosolids able to be processed. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04046 D&D Energy Conservation Efforts Design Mar-16 Jun-16 $198,932 Construction Sep-16 May-17 $1,571,205 Post-Constr. Jul-17 Oct-17 $5,385 Total $1,775,522 Previously Approved Total $0 Increase/(Decrease) $1,775,522

Project Description The purpose of this project is to replace the motors and drives on the twelve induced draft fans that maintain the negative pressure within the Milorganite® drying system with new motors and variable frequency drives (VFDs). The change in Total Project Cost is because this is a new project. The project is expected to have a positive Operating Budget Impact due to the increased energy efficiency.

ID #: Name: Phase Start Finish Cost J04047 Install Winches at Chaff Load-out Bay Design Feb-16 May-16 $52,165 Construction Sep-16 Mar-17 $208,801 Post-Constr. Mar-17 Jun-17 $5,484 Total $266,450 Previously Approved Total $0 Increase/(Decrease) $266,450

Project Description The purpose of this project is to install two floor-mounted winches in the chaff load-out bay to improve safety and protect the lugger and lugger truck from damage. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost

J04050 Dryer Feed and Discharge Screw Replacement

Design Oct-16 Oct-17 $585,127 Construction Jan-18 Jan-20 $2,880,398 Post-Constr. Mar-20 Jun-20 $5,392 Total $3,470,917 Previously Approved Total $0 Increase/(Decrease) $3,470,917

Project Description The purpose of this project is to improve the efficiency and reliability of biosolid processing equipment to allow for maximum production of Milorganite®. The project will replace the dryer mixer screw conveyors, dryer feed screw conveyors and the dryer discharge screw conveyors. The replacement of the feed and discharge screw system will allow conveyors to work at the designed capacity and ensure maximum Milorganite® production. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04051 MRAB Feed Screw Replacements Design Mar-16 Oct-16 $138,370 Construction Jan-17 Sep-17 $611,347 Post-Constr. Nov-17 Mar-18 $5,514 Total $755,231 Previously Approved Total $0 Increase/(Decrease) $755,231

Project Description The purpose of this project is to improve the efficiency and reliability of biosolid processing. The project will replace the main recycle air belt feed screw conveyors (MRAB). The current equipment is past its expected useful life and the failure of the conveyor system limits the productions of Milorganite®. The replacement of MRAB feed screws will allow for efficient and reliable biosolids processing. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04052 1st Stage Classification Equipment

Replacements Design Aug-16 May-17 $215,920

Construction Sep-17 Sep-19 $1,020,908 Post-Constr. Nov-19 Mar-20 $5,376 Total $1,242,204 Previously Approved Total $0 Increase/(Decrease) $1,242,204

Project Description The purpose of this project is ensure efficient and reliable bio-solids conveying equipment resulting in consistent bio-solids processing capacity. Conveyors that are operating in poor condition reduce the facility’s capacity to transport bio-solids efficiently, which affects Milorganite® production. Solids must be removed from the plant to maintain compliance with effluent permit limits and maintain stable clarifier and aeration basin operation. This project will replace two classification bucket elevator feed screw conveyors, two classification bucket elevators, and two classification first stage bin feed screw conveyors. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04053 Silo Bucket Elevator Replacements Design Sep-16 Jun-17 $164,987 Construction Oct-17 Oct-18 $733,567 Post-Constr. Jan-19 Apr-19 $4,760 Total $903,314 Previously Approved Total $0 Increase/(Decrease) $903,314

Project Description The purpose of this project is to ensure the efficient and reliable storage of dried biosolids to allow for maximum distribution to all customers. Inefficient and unreliable biosolids product conveyance equipment results in the inability to move product between the silos to control temperature and the inability to distribute raw production into silos based on product type and quality. This project will replace three silo bucket elevators to ensure biosolids can be moved from the D&D building into the storage silos. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04054 Silo Load-out Equipment Replacements Design Sep-16 May-17 $97,922 Construction Sep-17 Apr-18 $379,862 Post-Constr. Jun-18 Sep-18 $5,617 Total $483,401 Previously Approved Total $0 Increase/(Decrease) $483,401

Project Description The purpose of this project is to ensure uninterrupted load-out of bulk Milorganite® product for rail and truck transportation. This project will replace one silo load-out inclined drag conveyor, two railcar load-out drag conveyors and two truck load-out gates. The project will allow for efficient and reliable distribution from storage to all forms of transportation. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04055 Air Supply Unit #32 Replacement - MCRR

852 Design Sep-16 May-17 $108,909

Construction Sep-17 Apr-18 $351,062 Post-Constr. Jun-18 Sep-18 $5,617 Total $465,588 Previously Approved Total $0 Increase/(Decrease) $465,588

Project Description The purpose of this project is to restore the air handling capacity and redundancy of air supply unit #32 which was placed out of service due to age and cost prohibitive repair. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J04056 D&D Main Recycle Bin & Equipment

Venting Design Feb-16 Aug-16 $68,037

Construction Nov-16 Nov-17 $323,195 Post-Constr. Jan-19 Apr-19 $4,238 Total $395,470 Previously Approved Total $0 Increase/(Decrease) $395,470

Project Description The purpose of this project is to replace the recycle bin vent baghouse with equipment of a technology that is able to withstand and remove the large amount of moisture and dust that is present in this area. The new equipment should actively remove moisture and dust from the recycle bins, bucket elevators, and main recycle screw conveyors. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

General Projects Projects grouped into this category are projects that do not fit into the other water reclamation processes. The types of projects can be associated with: ENERGY DISTRIBUTION – electrical generation and distribution, hot water and steam generation, and distribution and process air generation BUILDINGS AND GROUNDS IMPROVEMENTS – capital improvements to non-process buildings and other improvements such as roads and utilities NONSPECIFIC Instrumentation and Control COSTS ASSOCIATED with litigation for non-current capital projects ALL OTHER nonspecific items

ID #: Name: Phase Start Finish Cost J06022 Site Settlement Design May-10 Dec-11 $218,730 Construction Jul-15 Aug-16 $1,526,419 Post-Constr. Aug-16 Feb-17 $6,305 Total $1,751,454 Previously Approved Total $1,417,655 Increase/(Decrease) $333,799

Project Description The purpose of this project is to ensure effective treatment of wastewater and the integrity of District assets subject to ground settlement at the Jones Island Water Reclamation Facility. The project scope is to design and construct solutions to ground settlement that impacts assets such as the process air compressor (PAC) building utilities, West Plant walkways, East Plant Gallery and its adjacent walkways, primary clarifier utilities and walkways, the Powerhouse roadway, and the Operations Building roadway. Damage to roadways and walkways are a safety hazard and leads to inefficient movement of equipment. Damage to utilities may interrupt efficient or effective wastewater treatment. The increase in Total Project Cost is due to additional construction needed at the west gate. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J06026 JI Site Lighting Upgrade Prelim. Eng Jun-15 Aug-16 $48,640 Design Nov-16 Jul-17 $103,442 Construction Dec-17 Oct-18 $510,356 Post-Constr. Nov-18 Nov-18 $1,425 Total $663,863 Previously Approved Total $2,346,957 Increase/(Decrease) ($1,683,094)

Project Description The purpose of this project is to improve the efficiency of the lighting system at the Jones Island Water Reclamation Facility. The project scope is to evaluate all of the existing indoor and outdoor lighting for a possible upgrade if the upgrade can be justified in terms of savings in energy, maintenance, and labor productivity. Existing lighting fixtures have reached the end of their useful life and are failing. As a safety issue, lighting in select buildings and building sections at Jones Island facilities require retrofitting or replacement. By replacing all lighting systematically (grouped replacement) the District achieves improved lighting and workplace safety, higher energy efficient product, and lower maintenance costs. Installation of occupancy and daylight photo sensor technology allows for substantial cost savings and is aligned with District energy goals. Revised cost estimates anticipate a decrease in Total Project Cost. The project should have a positive Operating Budget Impact as the result of increased energy efficiency. ID #: Name: Phase Start Finish CostJ06032 JI Geotechnical Structural Analysis Prelimin. Eng Apr-15 Dec-16 $578,501

Total $578,501Previously Approved Total $561,835

Increase/(Decrease) $16,666 Project Description The purpose of this project is to evaluate the structural condition of the many buildings and tanks at the Jones Island Water Reclamation Facility. The project will conduct an engineering and field investigation of the structural condition of the various facilities at Jones Island, concentrating on the facilities that are supported with 100-year-old wood pile foundations. The goal of the project is to assess the structures to determine if any structural deterioration has occurred due to the long-term drop in Lake Michigan water elevation. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J06034 Head Tank Wall Extension Planning Mar-10 Apr-12 $130,457 Prelim. Eng Feb-14 Jul-15 $415,988 Design Oct-11 Dec-15 $345,687 Construction Aug-12 Mar-17 $2,323,608 Post-Constr. Mar-17 Mar-18 $15,701 Total $3,231,441 Previously Approved Total $1,780,572 Increase/(Decrease) $1,450,869

Project Description The purpose of this project is to ensure the head tanks have adequate height for both existing hydraulic conditions and the anticipated increased flows resulting from the ISS pump station improvement project. The scope consists of design and installation of a wall extension to each of the Jones Island and South Shore head tanks. The project includes evaluating the head tanks and their connecting piping to determine the required maximum wall heights and piping modifications. The project also includes an analysis of the structural stability of both tanks with added wall heights and containment and drainage of wastewater from the tank site, installation of drainage system, and evaluation and upgrade of the instrumentation used to operate the head tanks. The increase in Total Project Cost is due to additional costs estimated in the construction phase. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J06045 HVAC for Computer Room in Ops

Building Design Jun-13 Oct-15 $55,989

Construction Dec-15 Apr-16 $90,442 Post-Constr. Apr-16 Aug-16 $1,900 Total $148,331 Previously Approved Total $147,889 Increase/(Decrease) $442

Project Description The purpose of this project is to improve the working environment within the Jones Island Operations building. The project scope is to replace the heating, ventilation, and air conditioning (HVAC) systems for three work areas within the Jones Island Operations building. The existing HVAC systems are inadequate to address the current heat loads generated by the number of staff occupying these areas and associated office equipment. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06047 Implementation of Safety

Recommendations Design Feb-11 Aug-14 $105,892

Construction Oct-14 Aug-15 $285,868 Post-Constr. Oct-15 Feb-16 $5,727 Total $397,487 Previously Approved Total $614,509 Increase/(Decrease) ($217,022)

Project Description The purpose of the project is to perform capital upgrades as required to increase safety and wastewater treatment system integrity. The project scope is to design and implement improvements to the fire suppression system. An automatic shut-off valve will be installed in the fuel supply line to the Jones Island boilers to prevent the leakage and spread of combustible liquid fuel oil. Water sprinklers will be installed in two Milorganite® bag houses at Jones Island to contain and prevent the spread of fire arising from the bag house. The decrease in Total Project Cost is due to elimination of scope associated with the explosion relief panels on the roof of Drying & Dewatering (D&D) building and a dust explosion suppression system for three bucket elevators. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J06050 JI I&C Improvements Design Jan-13 Oct-17 $219,632 Construction Feb-15 May-18 $1,527,693 Total $1,747,325 Previously Approved Total $1,769,046 Increase/(Decrease) ($21,721)

Project Description The purpose of this project is to improve the effectiveness and efficiency of process control at both water reclamation facilities. The project scope is to integrate multiple fiber optic networks and improve data routing through the network. A study completed in 2009 revealed that efficiency and effectiveness gains could be made by integrating networks developed under two separate capital projects. These networks are also approaching the end of their useful lives. The study also revealed that the current fail-over data routing methodology could lead to slow data transmission times and data loss. Delay in receiving or loss of data can impact overall operations of the treatment plant and impact permit compliance. The project also includes upgrading the Historian program, decommissioning the Bailey control systems, and upgrading the programmable logic controls which all are involved in how electronic signals from the instruments are passed to operators. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish CostJ06051 JI Building Roof Replacement Design Mar-13 Jul-14 $310,749

Construction Dec-14 Oct-15 $5,566,397

Post-Constr. Oct-15 Feb-16 $5,853

Total $5,882,999


Increase/(Decrease) $343,404 Project Description The purpose of this project is to rehabilitate or replace the roofs of the buildings at Jones Island, which protect people, equipment, and processes from weather, animals, birds, and other elements. The roofs are essential to efficiently operate and maintain the treatment process. The scope of this project includes replacing the roofs of buildings JI268, JI269, JI270, JI280, and JI281at Jones Island. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The design should include an analysis of the potential for installation of a green roof or solar panels and the necessary activities related to structural requirements (snow loads, equipment, etc.) and water drainage (i.e. roof drains, downspouts, and interior piping). The change in Total Project Cost is primarily due to increased construction costs. The Operating Budget Impact is not known at this time. ID #: Name: Phase Start Finish CostJ06052 Building Piping Inventory & Rehabilitation Planning Apr-13 Mar-18 $62,419

Prelimin. Eng Mar-18 Nov-18 $95,086Design Apr-19 Dec-19 $139,051Construction Mar-20 Apr-22 $1,428,313

Post-Constr. May-22 Jun-22 $6,521Total $1,731,390Previously Approved Total $1,680,541Increase/(Decrease) $50,849

Project Description This purpose of this project is to reduce the probability of building and process piping failures occurring within the water reclamation facilities buildings, galleries and tunnels. The scope of this project is to determine the level of degradation and corrosion of interior piping within the buildings, galleries and tunnels at both of the water reclamation facilities, prioritize the rehabilitation and replacement of identified damaged piping, and implement rehabilitation solutions. Corrosion of process piping can result in damaging water entering other treatment systems as well as causing outages and expensive repairs as most of the treatment process piping is under pressure. The change in Total Project Cost is due to schedule revisions and resulting inflation, project staffing, and updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06054 ISS Crane and Tunnel Fan Rehabilitation Design Jun-15 Mar-16 $306,099 Construction Jul-16 Oct-17 $1,384,918 Post-Constr. Nov-17 Mar-18 $19,965 Total $1,710,982 Previously Approved Total $1,673,390 Increase/(Decrease) $37,592

Project Description The purpose of this project is to extend the service life and improve reliability of the Inline Storage System (ISS) crane and tunnel fan to improve system performance during high flow events. The purpose of the crane is to remove the solids that accumulate on the bar screens prior to the flow entering the ISS pump intake header. The scope of this project is to analyze and implement rehabilitations related to the crane motors, braking systems, super structure, and cab. The crane has been operating in a harsh environment for over 20 years and is experiencing reliability and safety issues. The crane removes debris from the ISS bar screens and protects the ISS pumps from cavitation. The scope also includes replacement of two fans that exhaust sewer gas from the ISS. The fans have reached the end of their useful life, showing significant damage to their propeller blades and housings. Sewer gas presents a safety hazard when staff is deployed in the ISS for inspection and maintenance. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06055 Alternative Power Feed to Operations

Building Design Jun-14 Sep-15 $44,121

Construction Dec-15 Jun-16 $149,304 Post-Constr. Jul-16 Aug-16 $3,242 Total $196,667 Previously Approved Total $199,494 Increase/(Decrease) ($2,827)

Project Description The purpose of this project is to improve the reliability of conveyance system management by providing an emergency power source for the Operations Building which houses the conveyance SCADA system. The scope of this project is to install four 300-amp feeds in three conduits from LCUS-P in the Powerhouse building to a circuit breaker in the Operations Building electrical room in order to provide a third source of power for the conveyance SCADA system. A power failure for the conveyance SCADA system would result in an interruption in communication to critical equipment. A communications interruption could impact the District’s ability to respond to wet weather events, which increases the risk of overflows. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06056 Turbine Extended Service Agreement Construction $15,474,831 Total $15,474,831 Previously Approved Total $19,644,968 Increase/(Decrease) ($4,170,137)

Project Description The purpose of this project is to improve the reliability of the plant electrical system and minimize the financial impact associated with landfill gas turbine outages. The scope of this project is the capital portion, 75 percent of costs, of a ten-year contract with Solar Turbines Inc., which will complete engine and major engine component replacement (approximately every three to six years) on the District’s three landfill gas turbines. The landfill gas turbines are designed to provide power for the plant electrical system and minimize the amount of power purchased from WE Energies providing District rate payers a significant annual savings. The change in Total Project Cost is due to updated costs to reflect market conditions. The Operation Budget Impact includes 25 percent of the costs of the ten-year agreement with Solar Turbines, Inc. The Operations & Maintenance portion of the agreement covers: 1) routine maintenance, washing, and detailed inspection services; 2) remote monitoring of engine operating parameters and diagnostic evaluation of the parameters to detect abnormal conditions and address them early; 3) repairs and parts replacement; 4) unlimited unscheduled visits; and 5) unlimited technical support. ID #: Name: Phase Start Finish Cost J06057 VFDs for RAS WP, Service Water & WAS

Receiving Design Jun-13 Feb-14 $184,898

Construction Jun-14 Apr-16 $1,760,184 Post-Constr. Jun-16 Nov-16 $5,765 Total $1,950,847 Previously Approved Total $1,692,539 Increase/(Decrease) $258,308

Project Description The purpose of the project is to improve the reliability of several treatment systems at Jones Island and South Shore Water Reclamation Facilities by replacing variable frequency drives (VFDs) and associated heating, ventilation, and air conditioning (HVAC) systems. The project scope is to design and replace VFDs and associated HVAC systems for the Waste Activated Sludge Receiving Pump within the Thickening Building, the West Plant Return Activated Sludge (RAS) Pump within the RAS Pump Station Building, and the Service Water Pump located in the Effluent Pump Station Building. The VFDs are considered to be obsolete as they are no longer supported by the manufacturer and replacement parts are no longer available. The pumps that are controlled by these VFDs are critical to plant operation and could adversely affect treatment plant capacity and Discharge Permit compliance if they fail. The change in Total Project Cost is due additional construction costs. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost J06058 JI Building Roof Replacement - Phase II Design Sep-14 Feb-16 $406,065 Construction Jun-16 Oct-17 $5,744,911 Post-Constr. Nov-17 Jan-18 $5,097 Total $6,156,073 Previously Approved Total $6,120,173 Increase/(Decrease) $35,900

Project Description The purpose of this project is to rehabilitate or replace the roofs of the buildings at Jones Island, which protect people, equipment, and processes from weather, animals, birds, and other elements. The roofs are essential to efficiently operate and maintain the treatment process. The scope of this project includes rehabilitation or replacing roofs of buildings 225, 258, 259, 268, 285, 286, and 295 at Jones Island. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The design should include an analysis of the potential for installation of a green roof or solar panels and the necessary activities related to structural requirements (snow loads, equipment, etc.) and water drainage (i.e. roof drains, downspouts, and interior piping). The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06061 Duct Burner/Dryer Conversion for

Additional LFG Prelim. Eng Jan-14 Jun-15 $364,427

Design Oct-15 Jul-17 $992,584 Construction Oct-17 Nov-18 $5,506,078 Post-Constr. Jan-19 Jun-19 $8,502 Total $6,871,591 Previously Approved Total $8,781,954 Increase/(Decrease) ($1,910,363)

Project Description The purpose of the project is to improve the cost-effectiveness of solids processing. The project scope is to evaluate a duct burner versus a dryer burner system capable of utilizing landfill gas (LFG) as a fuel source to take advantage of a potentially increasing volume of LFG. The evaluation will consider parameters such as the cost of natural gas and electricity, the cost of LFG, and air permitting requirements. The project scope also includes the design and construction of the selected system. The change in Total Project Cost is due to a reduction in scope to include eight dryers, compared to the original scope which included twelve. The project is expected to have a positive Operating Budget Impact as a result of increased energy efficiency.

ID #: Name: Phase Start Finish Cost J06062 Re-Commission GE Turbine #2 Design Feb-16 Jul-16 $60,000 Construction Oct-16 Jun-17 $253,069 Post-Constr. Jul-17 Nov-17 $5,041 Total $318,110 Previously Approved Total $637,438 Increase/(Decrease) ($319,328)

Project Description The purpose of this project is to rapidly provide power during the event of a WE Energies power outage, to provide general redundancy for base power needs, and to provide redundancy for wet weather power needs in the event of a WE Energies power outage. The project includes reconnecting various piping, reinstalling the electrical switchgear, and reinstalling/reconnecting various other components to allow for operation of the turbine. The decrease in in Total Project Cost is due to the significant project scope changes. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06063 Tunnel & Gallery System Hazardous Rating

Improvements Planning Feb-15 Dec-17 $297,192

Total $297,192 Previously Approved Total $289,409 Increase/(Decrease) $7,783

Project Description This project scope depends on outcome of D&D gas monitoring in thickening area being done under Donahue VFD #4 contract and completion of (and incorporation of recommendations into scope from) project M01019. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06064 Gaseous Fire Suppression Systems Design Jul-15 Mar-16 $211,372 Construction Jul-16 Apr-17 $609,098 Post-Constr. May-17 Mar-18 $8,214 Total $828,684 Previously Approved Total $811,087 Increase/(Decrease) $17,597

Project Description The purpose of this project is to ensure the reliability of wastewater treatment and improve employee safety. The project scope is to evaluate vendors and design and install a gaseous fire suppression system in three control rooms at Jones Island and in two control rooms at South Shore. The previously installed Halon fire suppression system in these rooms has been removed or is no longer functioning. Fire in these staffed rooms poses a direct safety risk to personnel. Fire damage in each of these rooms is estimated to range from $175,000 to $2,500,000. This damage would disrupt operations and solids handling, potentially resulting in permit violations or increased costs of solids disposal. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish CostJ06065 Rolling Stock & Other Equipment Construction $14,142,176

Total $14,142,176Previously Approved Total $5,470,866

Increase/(Decrease) $8,671,310 Project Description The purpose of this project is to provide a mechanism to replace and purchase various minor rolling stock and equipment at Jones Island that meet the criteria for capital budget financing but do not require extensive cost and schedule management. The project scope will vary each year as existing projects are completed and new projects are added. The 2016 scope includes replacing a transfer pump, a waste heat guillotine, a recycle bin dust collector, and two recycle bin discharge conveyers. The 2016 scope also includes gallery exit light replacements and the purchase of a roll-off truck. The change in Total Project Cost is due to the cost of the projects added in 2016 exceeding the amount previously budgeted for 2016 as well as continuing to fund the project annually into the future. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06066 JI Power Supply Optimization Prelim. Eng. Jun-14 Jul-16 $261,502 Design Jul-16 Jun-17 $84,497 Construction Oct-17 Jan-19 $461,168 Total $807,167 Previously Approved Total $132,818 Increase/(Decrease) $674,349

Project Description The purpose of this project is to improve the overall reliability and safety of Jones Island’s power supply. The project scope will include a relay coordination study, adjustments to the load shedding scheme and connecting the diesel backup generator to the GE turbine gas compressors. The change in Total Project Cost is due to increased scope from vulnerability study findings. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost J06070 D&D Lighting Upgrade Prelim. Eng. Jan-16 Jan-17 $135,929 Design Nov-16 Aug-17 $54,155 Construction Dec-17 Sep-18 $950,125 Post-Constr. Nov-18 Feb-19 $5,037 Total $1,145,246 Previously Approved Total $0 Increase/(Decrease) $1,145,246

Project Description The purpose of this project is to assess, design and replace the lighting fixtures in the Jones Island Water Reclamation Facility Dewatering and Drying building. The current lighting system has reached the end of its useful life and no longer meets safety requirements. Additionally, the current lighting doesn’t meet efficiency standards or align with MMSD’s Energy and Sustainability Plan. The scope of this project will include the replacement of light fixtures with higher efficiency lighting technology and add occupancy and photos sensors to the system to allow for lights to be turned off when sunlight meets lighting standards or rooms are unoccupied. The change in Total Project Cost is because this is a new project. The project should have a positive Operating Budget Impact as the result of increased energy efficiency.

South Shore Water Reclamation Facility

Primary Treatment Primary treatment involves preliminary and primary treatment of influent flows. Preliminary treatment removes large and untreatable material such as wood, rags, sand, and grit. Primary treatment then collects the preliminary-treated water in large tanks, called clarifiers, to allow heavier solids to settle to the bottom of the tanks and lighter solids to float to the top. The goal of the process is to effectively remove material that can damage downstream equipment and most solids that cannot be treated biologically.

ID #: Name: Phase Start Finish Cost S01009 Scum System Improvements Prelim. Eng Sep-12 Dec-16 $190,883 Design Oct-22 Oct-23 $245,659 Construction Feb-24 Sep-25 $1,380,616 Post-Constr. Oct-25 Apr-26 $8,236 Total $1,825,394 Previously Approved Total $1,503,799 Increase/(Decrease) $321,595

Project Description The purpose of this project is to improve the effectiveness of the primary treatment system by making improvements to the scum system. The project scope is to investigate problems, evaluate alternatives, design, and construct improvements to the scum pumping system. The project will involve three general areas as follows: (1) improvements to the overall primary clarifier scum handling system, (2) assesses the economics of making improvements to the manner in which secondary clarifier scum is handled, and (3) investigates the feasibility of digesting both primary and secondary scum. The increase in Total Project Cost is due to increased project scope resulting from combining tasks from a separate project S01011 (which is no longer part of the capital budget). No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S01010 Influent Channel Sampler Design Feb-14 Dec-15 $276,020 Construction Feb-16 Dec-16 $516,505 Post Constr. Jan-17 Nov-17 $5,893 Total $798,418 Previously Approved Total $742,444 Increase/(Decrease) $55,974

Project Description The purpose of this project is to improve the accuracy of influent waste strength monitoring and reporting of South Shore influent. Accurate influent waste strength data are critical in making plant operation decisions and meeting permit requirements. The project scope is to determine a new location and upgrade the influent monitoring system at South Shore. The current system produces sampling results for Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) which are questioned by staff and inconsistent with other measurements within the treatment system. The District’s latest permit for South Shore requires the District to evaluate and identify a corrective action by June 30, 2013, and to implement a solution by December 31, 2016. The increase in Total Project Cost is due to additional evaluation of alternative locations for the upgraded sampler. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S01012 SS Influent Odor Control System Design Dec-15 May-16 $79,862 Construction Jul-16 Jan-17 $203,066 Post-Constr. Mar-17 Jul-17 $5,808 Total $288,736 Previously Approved Total $295,863 Increase/(Decrease) ($7,127)

Project Description The purpose of this project is to reduce the environmental impact of the South Shore Water Reclamation Facility (SSWRF). The project scope is to convert a sodium hypochlorite storage tank to a ferric chloride storage tank, install metering equipment, and piping to allow ferric chloride to be fed into the influent. During times of low flow, there have been odors associated with preliminary treatment, which has resulted in odor complaints from SSWRF neighbors. The proposed system will allow for a metered amount of chemicals to be fed into the influent to reduce the production of odors. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The project is expected to have a negative Operating Budget Impact, as it will require approximately $10,000 for the additional chemicals.


Secondary Treatment After removal of the solids, the primary-treated water flows to the secondary or biological activated sludge process. This process, called aeration, pumps large amounts of air into the water to permit bacteria and other microorganisms to consume soluble oxygen-demanding pollutants in the aerated water. The pollutants are broken down to mainly cell mass, carbon dioxide, and water. Prior to the introduction of air, an iron salt (pickle liquor or ferric chloride) is added to the water for phosphorus removal. The biologically treated flow is again routed through the secondary clarifier settling basins where the biological solids and the phosphorus precipitate settle and the liquid overflows to the next water reclamation process.

ID #: Name: Phase Start Finish Cost S02005 Secondary Clarifier Upgrade Design Feb-07 Dec-08 $674,075 Construction Sep-09 Nov-13 $10,577,599 Post-Constr. Aug-13 Dec-18 $693,696 Total $11,945,370 Previously Approved Total $11,795,282 Increase/(Decrease) $150,088

Project Description The purpose of this project is to restore the reliability and dependability of secondary clarifiers and the plant effluent water (W3) system. The scope consists of construction of 16 new clarifier mechanisms and eight clarifier drives. The scope also includes improvements in the lower pump station for the W3 system. The increase in Total Project Cost is due to additional costs associated with unanticipated post-construction activities. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S02008 SS Capacity Improvements Planning Mar-10 Dec-10 $13,200 Prelim. Eng Feb-12 Dec-15 $1,623,635 Design Apr-16 Nov-17 $946,026 Construction Feb-18 Sep-21 $9,223,441 Post-Constr. Mar-22 Mar-23 $21,711 Total $11,828,013 Previously Approved Total $11,210,976 Increase/(Decrease) $617,037

Project Description The purpose of this project is to cost-effectively increase the capacity of the South Shore Water Reclamation Facility, which will reduce the risk of sanitary sewer overflows, combined sewer overflows, and basement backups. This project will also reduce the scope of future expansion requirements. The scope includes completing the preliminary engineering, design, and construction of the projects recommended in the South Shore Water Reclamation Facility Capacity Analysis report (S06014). The recommended hydraulic improvements include: removing or replacing meters and valves restricting flow to the aeration facilities, modifying the back secondary clarifiers, constructing bypass pipes with metering or other alternatives to the Parshall flumes (a structure used to measure volumetric flow rate in wastewater treatment plant applications), increasing the capacity of the effluent pumps, and making improvements to the return activated sludge (RAS) system. The increase in Total Project Cost is due to additional labor, design and construction estimates, as well as inflation. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S02010 RAS VFD Replacements Design Jul-13 Feb-14 $128,371 Construction Jun-14 Apr-16 $1,172,764 Total $1,301,135 Previously Approved Total $1,520,851 Increase/(Decrease) ($219,716)

Project Description The purpose of the project is to improve the reliability of several treatment systems at Jones Island and South Shore Water Reclamation Facilities (SSWRF) by replacing variable frequency drives (VFDs) and associated heating, ventilation, and air conditioning (HVAC) systems. The project scope is to design and replace VFDs and associated HVAC systems for the return activated sludge process and the Aeration Buildings at the SSWRF. The VFDs are considered to be obsolete as they are no longer supported by the manufacturer and replacement parts are no longer available. The pumps that are controlled by these VFDs are critical to plant operation and could adversely affect treatment plant capacity and discharge permit compliance if they fail. The decrease in Total Project Cost is due to reduced construction cost estimates. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S02012 Collaborative Biological Phosphorus

Removal Prelim. Eng Mar-14 Oct-16 $321,610

Design Feb-17 Sep-17 $504,210 Construction Jan-18 Jun-19 $2,982,274 Post-Constr. Aug-19 Dec-19 $12,422 Total $3,820,516 Previously Approved Total $4,912,063 Increase/(Decrease) ($1,091,547)

Project Description The purpose of this project is to improve the effectiveness of phosphorous removal of the secondary treatment process in order to comply with current and future phosphorous limits in the WPDES permit. The project scope is to create an anaerobic zone in the front of all 28 aeration basins by installing a baffle wall. The baffle wall will require: installing mixers that will prevent settling of solids, removing piping and diffusers, and applications engineering in order to control the mixers. The decrease in Total Project Cost is due to revisions to project scope and schedule as well as a reduced construction cost estimate. The project is anticipated to have a positive Operating Budget Impact as a result of energy efficiency and a decrease in chemicals required for treatment.

South Shore Water Reclamation Facility Advanced Treatment The biologically treated wastewater enters the final treatment process in preparation for discharge into Lake Michigan. Here, sodium hypochlorite is used to disinfect the treated water. Disinfection is the selective destruction of disease-causing organisms including bacteria, viruses, and amoebic cysts. After chlorination, sodium bisulfite is mixed with the chlorine treated water to remove any chlorine residuals. Removal of chlorine is necessary to ensure no fish toxicity. The water reclamation process is complete and the fully treated water meets all U.S. Environmental Protection Agency and Wisconsin Department of Natural Resources requirements. Plant effluent is then discharged into Lake Michigan.

ID #: Name: Phase Start Finish Cost S02013 Aeration Galleries RAS Header Piping

Rehab Design Nov-15 Nov-16 $324,101

Construction Mar-17 Sep-18 $2,789,800 Post-Constr. Nov-18 May-19 $6,506 Total $3,120,407 Previously Approved Total $3,385,760 Increase/(Decrease) ($265,353)

Project Description The purpose of this project is to ensure the integrity of the Secondary Treatment process by replacing return activated sludge (RAS) piping to the aeration basins. The project scope is to replace RAS branch piping, fittings, and components from RAS discharge header to the 28 aeration basins and to replace the East and West RAS suction header piping from the RAS pump station to the RAS feed pumps. In addition, associated valves and instrumentation will be replaced. Due to age and corrosion, sections of piping and components have required significant corrective action. Testing has revealed deterioration of 40 percent in pipe wall thickness in the West suction header and 20 percent in the East suction header. If RAS piping and components are unable to provide service to the aeration basins, then plant capacity will be reduced, which may result in permit violations. Leakage into open gallery areas could result in worker safety issues. Inoperable or inaccurate valves and instrumentation impact the effective and efficient use of the aeration basins. The decrease in Total Project Cost is a result of redundancy reduced construction cost estimate. No significant Operating Budget Impact is expected.

South Shore Water Reclamation Facility Solids Processing The waste activated sludge from South Shore’s secondary clarifiers is pumped to dissolved air flotation thickening, and then to Jones Island for Milorganite® production. Biosolids from the primary clarifiers are pumped to the anaerobic digesters. Anaerobic digestion is used to stabilize the biological activity and reduce the bio-solids volume. The volatile organics in the bio-solids are converted to gas by bacteria that live and grow in the anaerobic environment and destroy up to 30 percent of the solids. Gas produced by this process fuels engines or heats the digesters. Once treated, the stabilized solids are removed from the digesters, conditioned with chemicals, and thickened with a centrifuge or gravity belt thickener. The thickened sludge may be pumped to Jones Island for Milorganite® production or dewatered into a filter cake and is disposed of in a licensed landfill.

ID #: Name: Phase Start Finish Cost S04010 Thickening Process Capacity

Enhancements Prelim. Eng Jul-15 Mar-16 $219,925

Design Apr-19 Jun-20 $328,387 Construction Oct-20 Dec-21 $2,238,646 Post-Constr. Feb-22 Dec-22 $8,018 Total $2,794,976 Previously Approved Total $2,408,382 Increase/(Decrease) $386,594

Project Description The purpose of this project is to increase process capacity and flexibility between treatment facilities by increasing solids handling capacity at the South Shore Water Reclamation Facility (SSWRF). The project scope is to evaluate, design, and implement two additional meters of gravity belt thickening capacity with either a single two-meter gravity belt thickener (GBT) or two one-meter GBTs and all related appurtenances. The scope also includes removal of all decommissioned centrifuge systems. This project is an outcome of the most recent draft of the Biosolids Facilities Plan and Addendum 4 of the 2020 Facilities Plan. The original thickening process consisted of the use of ten centrifuges. Three of the original ten centrifuges have been replaced by GBTs. The remaining seven are no longer in use as a result of maintenance and operational difficulties. The increase in Total Project Cost is due to the added scope to evaluate potential modifications required for the primary sludge pumping system. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S04020 Digester Mixing and Piping

Replacement Design Dec-11 Aug-15 $707,859

Construction Dec-12 Aug-16 $4,933,912 Post-Constr. Aug-16 Feb-17 $9,903 Total $5,651,674 Previously Approved Total $8,842,199 Increase/(Decrease) ($3,190,525)

Project Description The purpose of the project is to move the South Shore Water Reclamation Facility closer to the goal of energy independence by producing more energy by increasing digester gas production, reducing bio-solids mass, and providing capacity for receiving high strength waste in the digestion process. The project will design and construct a mixing system to improve digestion performance and digestion capacity by 20-40 percent. The improvements will occur in two phases. The first phase will install a pump and nozzle mixer or linear motion mixer in Digesters 10 & 12. The performance will then be analyzed and a preferred solution will be determined. The poor performance of the current mixing system has resulted in a significant buildup of solids requiring the basins to be cleaned out prior to the first phase of construction. Now that the first phase has been completed, project scope has been revised and additional digester mixing has been moved to a new capital project (S04029). Remaining work under this project includes design and construction of digester gas piping modifications. The decrease in Total Project Cost is due to transferring Digester Mixing Phase II to a separate project. The project is expected to have a positive Operating Budget Impact as a result of additional energy efficiency.

ID #: Name: Phase Start Finish Cost S04023 Aeration Basin Concrete Rehab - Phase

II Design Jul-15 Apr-16 $141,514

Construction Jul-16 Sep-17 $2,915,925 Post-Constr. Oct-17 Feb-18 $5,644 Total $3,063,083 Previously Approved Total $0 Increase/(Decrease) $3,063,083

Project Description The purpose of this project is to repair aeration basin walls to protect worker safety and air diffusers from falling concrete. Repairs to concrete walls in 8 basins will be required as part of phase II. Concrete repairs at remaining aeration basins are included in a new capital project (S04030). The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S04024 Digester Gallery Piping Rehab Planning Nov-14 Apr-16 $173,054 Prelim. Eng May-19 May-21 $944,552 Design Dec-21 Jun-23 $717,671 Construction Oct-23 Jun-25 $3,337,088 Post-Constr. Jul-25 Nov-25 $29,017 Total $5,201,382 Previously Approved Total $5,072,953 Increase/(Decrease) $128,429

Project Description The purpose of this project is to identify high risk pipes for which a failure could lead to extensive service disruptions, safety concerns or environmental damage. The project scope is to provide the best engineering approach to assess the condition of the 5,500 feet of digester gas piping, to evaluate the probability of failures occurring, and to develop an approach for preventing future pipe failures at the South Shore Water Reclamation Facility. In the preliminary engineering phase, the project will accurately and comprehensively measure the current pipe wall thickness of critical piping and will assess rates of corrosion and any other forms of pipe degradation. The project also will identify any foreseeable pipe defects and will recommend remedial actions. Total project cost includes pipe replacement if replacement is determined to be necessary. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S04025 HW Boiler Control Systems

Improvements Design Jul-15 Jan-16 $88,576

Construction Apr-16 Jan-17 $354,866 Post-Constr. Mar-17 Jul-17 $4,832 Total $448,274 Previously Approved Total $338,060 Increase/(Decrease) $110,214

Project Description The purpose of this project is to ensure reliability and efficiency of the treatment process and building operations by replacing hot water boiler control systems. The project scope is to design and install replacement of a control system for boiler #3 and #4. The current control system was installed in the late 1980s and has reached the end of its useful life. Repair parts are no longer available. These boilers are used to heat buildings at South Shore as well as the anaerobic digesters. The digesters in turn create gas that is used as energy in the treatment process. Upgrading the control system is expected to save energy and extend the useful life of the boilers. The increase in Total Project Cost is due to revised design and construction cost estimates. The project is expected to have a positive Operating Budget Impact as a result of additional energy efficiency.

ID #: Name: Phase Start Finish Cost S04030 Aeration Basin Concrete Rehab - Phase III Design Nov-15 Apr-16 $267,660 Construction Apr-17 Dec-19 $6,202,403 Post-Constr. Dec-19 May-20 $5,645 Total $6,475,708 Previously Approved Total $0 Increase/(Decrease) $6,475,708

Project Description The purpose of this project is to repair aeration basin walls to protect worker safety and air diffusers from falling concrete. Repairs to concrete walls in the remaining 18 basins will be required as part of Phase III. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S04031 Digester Gas Treatment System Prelim. Eng Jun-16 Apr-17 $107,509 Design Jul-17 Apr-18 $182,544 Construction Jul-18 Jul-20 $1,115,196 Post-Constr. Sep-20 Dec-20 $5,650 Total $1,410,899 Previously Approved Total $0 Increase/(Decrease) $1,410,899

Project Description The purpose of this project is to reduce the cost of maintenance and overhaul of South Shore generators that result from hydrogen sulfide and siloxane in digester gas fuel. Current levels of hydrogen sulfide and siloxane are at levels likely to cause corrosion or damage to engine parts. This project will plan, engineer, design and construct a treatment system which will remove these harmful components from the digester gas, thereby protecting the equipment and reducing downtime. The change in Total Project Cost is because this is a new project. The project is expected to have a positive Operating Budget Impact because of the reduced need for engine repairs.


Solids Manufacturing This process involves the disposal of the scrap from solids processing. There are no projects for this process in 2016.

General Projects Projects grouped into this category are projects that do not fit into the other reclamation facility processes. The types of projects can be associated with: ENERGY DISTRIBUTION – electrical generation and distribution, hot water and steam generation and distribution, digester gas distribution, and process air generation BUILDINGS AND GROUNDS IMPROVEMENTS – capital improvements to non-process buildings and other improvements such as roads and utilities NONSPECIFIC Instrumentation and Control COSTS ASSOCIATED with litigation with non-current capital projects ALL OTHER nonspecific items

Projects included in the budget in this area will improve operations, most notably in the upgrade of the instrumentation and control equipment that will help better control the water reclamation process and make use of existing capacity.

ID #: Name: Phase Start Finish CostS06009 Roadways and Walkways Design Jan-16 Jun-16 $132,517

Construction Sep-16 Mar-17 $379,702

Post-Constr. Apr-17 Oct-17 $6,917

Total $519,136

Previously Approved Total $519,136

Increase/(Decrease) $0 Project Description The purpose of this project is to improve the safety and efficiency of South Shore Water Reclamation Facility’s (SSWRF) roadway and walkway infrastructure. The project scope is to rehabilitate or replace asphalt and concrete roadways and walkways at SSWRF. A technical analysis of this infrastructure was completed in 2003. This analysis created an inventory, identified and prioritized deficiencies, and developed solutions. Deficiencies observed included potholes, settlement, heaving, spilling, cracking, and damage due to drainage issues with some facilities near failure. The roadways and walkways are of varying age and were constructed as original facilities in the 1960s, and as new facilities (primarily in the 1980s) were either added or modified. There is no change to the Total Project Cost. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S06010 SS Site Lighting Upgrade Prelim. Eng Jun-15 Feb-16 $89,208 Design Jun-16 Mar-17 $102,487 Construction Sep-17 Aug-18 $520,489 Post-Constr. Sep-18 Oct-18 $1,446 Total $713,630 Previously Approved Total $0 Increase/(Decrease) $713,630

Project Description The purpose of this project is to improve the efficiency of the lighting system at the South Shore Water Reclamation Facility. The project scope is to evaluate all of the existing indoor and outdoor lighting for a possible upgrade if the upgrade can be justified in terms of savings in energy, maintenance, or labor productivity. Existing lighting fixtures have reached the end of their useful life and are failing. As a safety issue, lighting in select buildings and building sections at South shore facilities require retrofitting or replacement. By replacing all lighting systematically (grouped replacement) the District achieves improved lighting and workplace safety, higher energy efficient product, and lower maintenance costs. Installation of occupancy and daylight photo sensor technology allows for substantial cost savings and is aligned with District energy goals. Revised cost estimates anticipate a decrease in Total Project Cost. The project should have a positive Operating Budget Impact as the result of increased energy efficiency.

ID #: Name: Phase Start Finish Cost S06015 SS Geotechnical Structural Analysis Prelim. Eng Oct-15 Jun-19 $544,452 Total $544,452 Previously Approved Total $527,536 Increase/(Decrease) $16,916

Project Description The purpose of this project is to evaluate the structural condition of the many buildings and tanks at the South Shore Water Reclamation Facility. The project will conduct an engineering and field investigation of the structural condition of the various facilities at South Shore. The goal of the project is to assess if any structural deterioration has occurred. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S06019 Replace W3 Flushing Water Pumps Design Feb-15 Apr-16 $178,896 Construction Jul-16 Sep-17 $751,208 Post-Constr. Oct-17 Feb-18 $5,646 Total $935,750 Previously Approved Total $621,791 Increase/(Decrease) $313,959

Project Description The purpose of this project is to ensure the reliability of the South Shore W3 water system. The project scope is to design, construct, and install the replacement of eight W3 water pumps (four on the lower site and four on the upper site). The pumps are over 25 years old and have reached the end of their useful life. The W3 water system is non-potable water used in the treatment process for cooling water, maintenance, and chemical dilution. The increase in Total Project Cost is due to a change scope to include four upper site pumps. A positive Operating Budget Impact is expected as a result of increased energy efficiency. ID #: Name: Phase Start Finish CostS06022 Building 326 Site Improvements Design Feb-15 May-17 $177,571

Construction Sep-17 Oct-18 $732,127

Post-Constr. Dec-18 Apr-19 $4,973

Total $914,671

Previously Approved Total $896,894

Increase/(Decrease) $17,777 Project Description The purpose of the project is to improve the reliability of the Blower & Generator Building (Building 326). The project scope is to design and construct storm sewer and paving improvements for long-term flood protection at Building 326. There have been several incidents of storm water flooding into Building 326 through five door entrances. Interim flood protection has been installed to keep water from entering through the doors. Storm sewer and paving site improvements are needed to provide positive drainage away from the building. Preliminary engineering investigation indicates the capacity of the existing storm sewer system at Building 326 is exceeded during a five-year storm. There are generator, electrical, and control equipment installations in Building 326 which are critical to overall operations at South Shore. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S06023 SS Drainage Channel Improvements Design Apr-13 Feb-15 $77,977 Construction May-15 Dec-15 $282,322 Post-Constr. Feb-16 Apr-16 $5,363 Total $365,662 Previously Approved Total $327,134 Increase/(Decrease) $38,528

Project Description The purpose of this project is to ensure the integrity of the treatment process by managing stormwater and improving safety conditions for employees. The scope of this project is to design and construct a replacement for the paved 1,300 foot drainage ditch that runs along the south property line. The existing ditch is nearly 50 years old and has reached the end of its useful life. It no longer functions as intended due to the numerous breaks in the concrete and has created safety hazards due to sinkholes. The alternative analysis will include green solutions. The increase in Total Project Cost is due to revision of construction costs based on bids received. The Operating Budget Impact is not known at this time. ID #: Name: Phase Start Finish CostS06024 SS Building Roof Replacement Design Mar-13 Jul-14 $239,307

Construction Dec-14 Sep-15 $1,180,412

Post-Constr. Sep-15 Jan-16 $7,212

Total $1,426,931


Increase/(Decrease) $7,291 Project Description The purpose of this project is to maintain and potentially upgrade the roofs of the buildings at South Shore, which protect people, equipment, and processes from weather, animals, birds, and other elements. Maintaining buildings is necessary to efficiently operate and maintain the treatment process. This project will replace the roofs at South Shore on buildings 316, 317, 329, 330, 332, 378, and 382. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The design should include an analysis of the potential for installation of a green roof or solar panels and the necessary activities related to water drainage (such as roof drains, downspouts, and interior piping). The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S06026 SS Building Roof Replacement - Phase II Design Sep-14 Feb-16 $350,253 Construction Jun-16 Oct-17 $3,328,261 Post-Constr. Nov-17 Jan-18 $5,128 Total $3,683,642 Previously Approved Total $3,644,768 Increase/(Decrease) $38,874

Project Description The purpose of this project is to maintain and potentially upgrade the roofs of the buildings at South Shore, which protect people, equipment, and processes from weather, animals, birds, and other elements. Maintaining buildings is necessary to efficiently operate and maintain the treatment process. This project will replace the roofs at South Shore on buildings 327, 328, 331, 333, 334, 335, 336, 344, 346, 347, 351, 355, 359, 360, 380, 384, and 385. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The design should include an analysis of the potential for installation of a green roof or solar panels and the necessary activities related to water drainage (such as roof drains, downspouts, and interior piping). The increase in Total Project Cost is due to another building being added to the scope of work (380) and inflation. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S06027 Tunnels Concrete Rehabilitation Design Nov-15 Apr-17 $213,052 Construction Jul-17 Dec-18 $1,315,545 Post-Constr. Jan-19 May-19 $8,902 Total $1,537,499 Previously Approved Total $1,523,704 Increase/(Decrease) $13,795

Project Description The purpose of this project is to maintain the effective and efficient operations of the South Shore Water Reclamation Facility (SSWRF). The project scope is to design and rehabilitate concrete tunnels at the SSWRF. These tunnels, constructed in the 1960s and the 1980s, house all of the process, utility piping, electrical power distribution, and control wiring for the lower portion of the SSWRF. Water infiltration into these tunnels damage the assets housed within, damage the tunnel itself, and can cause employee safety issues. Damage to the assets within the tunnel can lead to process outages, inefficient operations, and ineffective wastewater treatment. The change in Total Project Cost is de minimis. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S06028 Central Control Building H2S Removal

System Design Nov-15 Aug-16 $128,453

Construction Nov-16 Oct-17 $449,040 Post-Constr. Dec-17 Dec-18 $10,807 Total $588,300 Previously Approved Total $515,294 Increase/(Decrease) $73,006

Project Description The purpose of this project is to improve the reliability of critical treatment process electrical equipment within the Central Control Building of the South Shore Water Reclamation Facility (SSWRF). The project scope is to design and install a hydrogen sulfide removal system the SSWRF Central Control Building. Hydrogen sulfide from the surrounding area enters the control building, causing corrosion issues with electrical and electronic equipment. Constant exposure to the hydrogen sulfide has resulted in numerous repairs to critical electronic equipment including servers, hard drives, and computer circuit boards. The increase in Total Project Cost is due to design and construction phase cost estimate revisions as well as inflation. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S06029 Med Voltage Switchgear Replacement Design Oct-15 May-16 $450,568 Construction Sep-16 Dec-17 $2,582,812 Post-Constr. Feb-18 Jun-18 $7,275 Total $3,040,655 Previously Approved Total $1,582,719 Increase/(Decrease) $1,457,936

Project Description The purpose of this project is to improve the reliability of South Shore Water Reclamation Facility (SSWRF) electrical power source. The project scope is to design and install thirteen vacuum medium voltage switchgear circuit breakers within switchgear located in Building 388. The current switchgear and air type circuit breakers are nearly 40 years old and replacements are no longer available. This equipment provides power, through several Load Center Unit Substations, to a large portion of the SSWRF. The increase in Total Project Cost is due to another motor control center replacement (MCC-8) being added to the project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost S06032 SS Rolling Stock & Other Equipment Construction $11,481,542 Total $11,481,542 Previously Approved Total $1,414,590 Increase/(Decrease) $10,066,952

Project Description The purpose of this project is to provide a mechanism to replace and purchase various minor rolling stock and equipment at South Shore that meet the criteria for capital budget financing but do not require extensive cost and schedule management. The project scope will vary each year as existing projects are completed and new projects are added. The 2016 scope items include replacement of RAS and underdrain pumps, digester gallery lighting control panel replacement, and aeration building fall protection improvements. The change in Total Project Cost is due to the cost of the projects added in 2016 exceeding the amount previously budgeted for 2016 as well as continuing to fund the project annually into the future. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost S06033 Upgrade Medium & Low Voltage

Motor Control Centers Design Feb-16 Oct-16 $590,861

Construction Feb-17 Mar-19 $3,730,505 Post-Constr. May-19 Aug-19 $6,240 Total $4,327,606 Previously Approved Total $0 Increase/(Decrease) $4,327,606

Project Description The purpose of this project is to replace the motor control centers at the South Shore plant that are over 40 years old and have reached the end of their useful life. The current motor control centers are beginning to fail and, due to age, repair parts are difficult to find. The scope of this project will include the replacement of approximately half of the motor control center units at South Shore. The other half will be a part of a second phase. The change in the Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time. ID #: Name: Phase Start Finish Cost S99003 Operator Contribution to CIP Six-Year Forecast Total $1,200,000 Total $1,200,000

Project Description The operating contract with Veolia Water Milwaukee (VWM) includes provisions for VWM to participate in current and planned District capital projects. The scope of this project includes VWM work in reviewing the annual capital budget, reviewing and creating requests for new projects, attending meetings, and participation in the implementation of capital projects. Operator Contribution to Capital Improvement Program accounts do not have an approved total project cost. The 2016 expenditures are budgeted at $300,000; the six-year long-range financing plan includes $1.2 million. No significant Operating Budget Impact is expected.

Interplant Pipeline A 12-mile pipeline that connects the Jones Island and South Shore water reclamation facilities allows the transfer of sludge between the water reclamation facilities. This interplant pipeline aids in the production of Milorganite® because waste activated sludge and digested sludge can be conveyed to Jones Island where Milorganite® is produced. The primary sludge from Jones Island can be sent to South Shore solids handling facilities and then to either farm fields or sanitary landfills for final disposal outside of the plant.

ID #: Name: Phase Start Finish Cost P01003 Interplant Pipeline Improvements at South

Shore Prelim. Eng Nov-08 Jan-16 $1,381,577

Design Apr-14 Jun-16 $269,317 Construction Jan-15 Oct-17 $1,975,008 Post-Constr. Oct-17 Aug-18 $3,849 Total $3,629,751 Previously Approved Total $3,363,313 Increase/(Decrease) $266,438

Project Description The Interplant Sludge System (IPS) is a series of four pipes that allows transfer of solids between Jones Island and South Shore for the purpose of maximizing Milorganite® production and other bio-solids environmentally sustainable recycling methods. The purpose of this project is to maintain capacity and operational flexibility for solids processing between Jones Island and South Shore. This project is to design and install replacement of pipe segments, related facilities, and cathodic protection for the IPS. Specifically the scope will replace three severely corroded segments of the IPS, upgrade existing junction structure valves with full port valves, and make modifications to junction structures to improve redundancy, install three cathodic protection stations, and restore conductivity for the project areas. The IPS is over 20 years old and much of its support equipment has reached the end of is useful life. Cathodic Protection is used to minimize corrosion of buried infrastructure. The increase in Total Project Cost is due to revised construction cost estimates. The Operating Budget Impact is not known at this time.

The IPS is a series of four pipes

that allows transfer of solids between Jones Island and

South Shore for the purpose of maximizing Milorganite® production and other bio-

solids environmentally

sustainable recycling methods.

ID #: Name: Phase Start Finish Cost P01005 Interplant Pipeline Improvements - Phase II Design Jan-16 Jan-17 $1,189,336 Construction Apr-17 Apr-21 $11,703,832 Post-Constr. May-21 Sep-21 $5,848 Total $12,899,016 Previously Approved Total $11,134,109 Increase/(Decrease) $1,764,907

Project Description The Interplant Sludge System (IPS) is a series of four pipes that allows transfer of solids between Jones Island and South Shore for the purpose of maximizing Milorganite® production and other bio-solids environmentally sustainable recycling methods. The purpose of this project is to maintain capacity and operational flexibility for solids processing between Jones Island and South Shore. This project is to design and install replacement of pipe segments, related facilities, and cathodic protection for the IPS. Specifically the scope will replace three severely corroded segments of the IPS, upgrade existing junction structure valves with full port valves, and make modifications to junction structures to improve redundancy, install three cathodic protection stations, and restore conductivity for the project areas. The IPS is over 20 years old and much of its support equipment has reached the end of is useful life. Cathodic Protection is used to minimize corrosion of buried infrastructure. The increase in Total Project Cost is due to revised construction cost estimates. The Operating Budget Impact is not known at this time.

Landfill Gas Pipeline ID #: Name: Phase Start Finish Cost P02003 LFG Pipeline Pigging Station Planning Jan-16 Mar-17 $111,429 Prelim. Eng Mar-17 May-18 $132,764 Design Mar-20 Mar-21 $162,574 Construction Jun-21 Jun-22 $515,129 Post-Constr. Aug-22 Aug-23 $7,268 Total $929,164 Previously Approved Total $0 Increase/(Decrease) $929,164

Project Description The purpose of the project is to evaluate locations and design two-way pigging stations for the south end of the Land Fill Gas pipeline. The ability to inspect and maintain the pipeline is required by the Wisconsin Public Service commission for the project to continue. A pigging station which was proposed for College Avenue was not viable and this project will replace the originally proposed station. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.


The District owns and operates an extensive system of sanitary sewers used to collect, convey, and in some cases, store wastewater originated by local sewer systems. The local sewer systems are operated and maintained by governments within the District and those contracted with the District. Wastewater generated from households and businesses flows to the local systems, is collected by the District’s system, and is conveyed to the District’s two Water Reclamation Facilities. The budget divides the District’s conveyance system into three components: the Metropolitan Interceptor Sewer System, the Inline Storage System, and the Central Control System.

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Metropolitan Interceptor Sewer System The District’s Metropolitan Interceptor Sewer (MIS) system, a network of sanitary sewers, is operated and maintained through a contract with Veolia Water Milwaukee (VWM). The purpose of the MIS system is to intercept wastewater from local sanitary and combined sewer systems within the service area. Wastewater within the MIS system is subsequently conveyed to either the Jones Island or South Shore Water Reclamation Facilities.

The MIS system is divided into seven subsystems for purposes of flow monitoring analysis and system control. In the combined sewer area where both sanitary and storm water systems are combined, the MIS subsystem consists of a high-level and a low-level sewer system. The low-level system provides service to the low-lying areas along the Milwaukee, Menomonee, and Kinnickinnic rivers. Flow in both high and low-level systems is conveyed by gravity to either of two siphon chambers (East Erie Street or East Bruce Street) and is then conveyed via a double-barreled siphon to a wet well at Jones Island.

Flows can also be diverted between the subsystems for conveyance to either Jones Island or South Shore. Moreover, flows can be diverted to the Inline Storage System, a large storage facility underground. Diversion of flow between subsystems is accomplished by manually operating gates and flow diversion devices or by operator initiation from the District’s Central Control System.

Inline Storage System The Inline Storage System (ISS), or Deep Tunnel System, consists of 21.4 miles of tunnels 300 feet underground and can store up to 432 million gallons of wastewater. The cornerstone of the Water Pollution Abatement Program (WPAP), the ISS became fully operational in 1994. The Northwest Side Relief Sewer (NWSRS) went on-line in early 2006. This storage tunnel is 7.1 miles long, 20 feet in diameter and adds 89 million gallons of storage capacity to the existing system, for a total of 494 million gallons. The ISS and NWSRS store peak wastewater flows that temporarily exceed the capacity of either the Water Reclamation Facilities or the MIS system. The system is designed to substantially reduce the number of bypasses and the discharge of untreated or partially treated wastewater into Lake Michigan and area streams.

During wet weather periods, the MIS system surcharges when the hydraulic capacity of the system has been reached. When this happens, pressure causes the flow to seek a free outfall. Under the original MIS system design, this outfall (also referred to as an overflow) flowed into area rivers and Lake Michigan. Since completion of the WPAP, when the system becomes surcharged the near-surface collector system conveys excess flows to the ISS via a series of 24 drop shafts. The ISS system was designed to eliminate overflows from the separated sewer area and to greatly reduce overflows in the combined sewer area. The ISS was designed to capture most, but not all, of the flows caused by extreme wet weather events.

Central Control System Using continuous and intermittent monitors, flows within the MIS system and the local sewer system are monitored. Continuous monitors are permanently installed in over 300 locations and primarily use a wireless communication system to transmit data back to the District’s Central Control System. Intermittent monitors are temporarily installed and rely on field crews to retrieve the data.

Along with monitoring flow data, the Central Control System allows remote operation of the conveyance system. A single operator can divert flow from one subsystem to another, from one water reclamation facility to another or to the ISS. The goal of the Central Control System is to ensure that water reclamation facility and conveyance capacity is utilized in the most efficient manner.

The 2016 Capital Budget includes $10.6 million for work on various conveyance projects. Please refer to project detail on the following pages for information on the project purpose, scope, cost estimate and impact on the O&M budget.

Subsystem 1 – South Shore Main Branch Metropolitan Interceptor Sewer System Subsystem 1 is located in the southern part of Milwaukee County. While some areas of Subsystem 1 can be diverted to either the Jones Island or South Shore Water Reclamation Facilities, a majority of flows are tributary to South Shore. Communities that discharge to Subsystem 1 are the cities of Cudahy, Greenfield, Milwaukee, Oak Creek, and West Allis. There are no projects for this subsystem in 2016.

Subsystem 2 – Southwest Branch

Metropolitan Interceptor Sewer System Subsystem 2 is located on the south side of the planning area and its flows are tributary to South Shore. The communities discharging to this subsystem are the cities of Franklin, Greenfield, Milwaukee, Muskego, New Berlin, Oak Creek and West Allis, the villages of Greendale and Hales Corners, and the Caddy Vista Sanitary District.

ID #: Name: Phase Start Finish Cost C02008 Force Main Rehabilitations Prelim. Eng Jun-11 Dec-17 $2,900,906 Design May-18 Apr-19 $1,022,795 Construction Mar-18 Dec-20 $4,492,358 Total $8,416,059 Previously Approved Total $8,077,576 Increase/(Decrease) $338,483

Project Description The purpose of this project is to assess the probability of failure of the force mains associated with the Franklin/Muskego, South Shore and Greenfield Park pump stations. These three force mains have not been inspected since they were put into service 25 years ago. The project includes conducting a condition assessment of the force mains related to the Franklin/Muskego, South Shore and Greenfield Park pump stations. The District will also complete field investigations including internal and external inspections to detect pipe wall fractures, changes in material, location and placement of reinforcement, pipe wall thickness, and voids. Using this information, the District will perform a failure analysis and recommend the appropriate pipe rehabilitation solutions. The increase in the Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

Subsystem 3 – Northwest Branch

Metropolitan Interceptor Sewer System Subsystem 3, serving the western part of the service area, can have most of its flow diverted to either water reclamation facility. A small portion of the area is tributary to South Shore only. Communities that discharge to Subsystem 3 are the cities of Brookfield, Milwaukee, New Berlin, Wauwatosa, and West Allis; and the villages of Butler, Elm Grove, Germantown, and Menomonee Falls.

ID #: Name: Phase Start Finish Cost C03009 107th St. MIS Improvement Planning Oct-10 Mar-11 $449 Prelim. Eng Mar-11 Nov-11 $47,348 Design Jun-15 Jul-16 $890,968 Construction Nov-17 Dec-18 $11,550,574 Post-Constr. Jan-19 Feb-19 $33,646 Total $12,522,985 Previously Approved Total $16,647,640 Increase/(Decrease) ($4,124,655)

Project Description The purpose of the project is to reduce the risk of a sanitary sewer overflow due to failure of the MIS in 107th Street from Silver Spring to Harvest, in Harvest from 107th to the Little Menomonee River, along the Menomonee River from Harvest to Hampton, and to provide a cost-effective service life of an additional 50 years or more. The project scope is to plan, design, and construct a solution to the failing MIS in the previously described area. This section of MIS is currently severely degraded and at a high risk of failure, which puts the District at risk of causing basement backups, SSOs, and permit non-compliance. This MIS was built in 1956, and rehabilitated in 1987. Because the MIS is not that old and is in such poor condition, this project will include:

x The preparation of a root cause analysis or a technical memorandum determining the cause(s) of the degradation; x A preliminary engineering investigation that will include a review of the 2020 Facilities Plan flow requirements and

flow monitoring data, defining specific project objectives, development and evaluation of alternatives, and recommending an alternative;

x Engineering design of the recommended alternative and preparation of construction bid documents; x Construction of the MIS improvements.

The decrease in Total Project Cost is primarily due to a lower construction cost estimate. No significant Operating Budget Impact expected.

ID #: Name: Phase Start Finish Cost C03012 ZIC MIS Lining & Manhole Reconfiguration Design Oct-13 Jul-17 $181,387 Construction Jun-20 Mar-21 $925,613 Post-Constr. Mar-21 Jul-21 $6,265 Total $1,113,265 Previously Approved Total $1,107,675 Increase/(Decrease) $5,590

Project Description The purpose of this project is to protect the District MIS from additional fill being placed over it as part of the Wisconsin Department of Transportation’s (WisDOT) Zoo Interchange (ZIC) project. The project scope is to evaluate the need for and subsequently install a structural liner within the MIS from manhole MH09407 to MH09403 and reconfigure a manhole. WisDOT has paid the District $1,100,000 for the cost of the project. The change in Total Project Cost is due to inflation. No significant Operating Budget Impact.

Subsystem 4 – Northeast Branch

Metropolitan Interceptor Sewer System Subsystem 4 is located in the central and northeast parts of the planning area. Some flows in Subsystem 4 can be diverted to either water reclamation facility. Flow that cannot be diverted is tributary to South Shore. Communities served by Subsystem 4 are the cities of Glendale, Mequon, Milwaukee, Wauwatosa and West Allis; and the villages of Bayside, Brown Deer, Fox Point, River Hills, and Thiensville.

ID #: Name: Phase Start Finish Cost C04010 Mill/Green Bay/Green Tree MIS Relief Planning Jan-16 Oct-17 $1,230,494 Design Jul-18 Feb-20 $5,611,426 Construction Jul-20 Aug-22 $48,430,179 Post-Constr. Sep-22 Mar-23 $141,114 Total $55,413,213 Previously Approved Total $0 Increase/(Decrease) $55,413,213

Project Description The purpose of this project is to reduce sanitary sewer overflows (SSOs) and provide conveyance relief to the 72-inch metropolitan interceptor sewer (MIS) from West Green Tree Road and North River Road at Bypass Structure BS0404 to West Mill Road and North Sydney Place at Diversion Chamber DC0409. In both 2014 and 2015, overflows occurred at BS0404 while the inline storage system (ISS) was available for inflows from this area. This is an indication that enough development has occurred to cause a need for conveyance enhancement or relief of the 72-inch MIS downstream of BS0404. The scope of this project would provide conveyance relief to 8,300 linear feet of 108-inch sewer and 12 manholes with depths between 20 and 50 feet. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected from this project.

Subsystem 5 – North Side High Level Branch Metropolitan Interceptor Sewer System Subsystem 5 is located in the northeastern part of Milwaukee County. Most of this subsystem’s flows are tributary to Jones Island. Flow from River Hills and portions of Glendale can be diverted to South Shore. Communities discharging within Subsystem 5 are the cities of Glendale, Mequon, and Milwaukee; and the villages of Brown Deer, River Hills, Shorewood, and Whitefish Bay.

ID #: Name: Phase Start Finish Cost C05041 CMIS - Auer to Hampton Phase II: H (C016) Design Jan-06 Jul-19 $1,430,330 Construction Nov-06 Aug-23 $6,254,589 Post-Constr. Sep-23 Jan-24 $383,744 Total $8,068,663 Previously Approved Total $8,813,536 Increase/(Decrease) ($744,873)

Project Description The purpose of the project is to reduce the risk of a sanitary sewer overflow due to the failure of the Auer to Hampton MIS and provide a cost-effective service life of an additional 50 years or more. The project scope is to design and implement rehabilitation of the MIS located in Basin “H” of the Central MIS sewer system. It runs roughly adjacent to the Milwaukee River from Auer Avenue to Hampton Avenue northward and from Auer Avenue to Milwaukee Street southward. This project includes removing PCB contaminants, installing joint seals and repairing longitudinal cracks in pipe segments, and rehabilitating manholes to provide additional 50-years of service life. The change in Total Project Cost is due to revisions to design, construction and post-construction phase cost estimates. The Operating Budget Impact is not known at this time.

Subsystem 6 – South Side High Level Branch Metropolitan Interceptor Sewer System Subsystem 6 is located in the southern half of Milwaukee County. Some areas of Subsystem 6 can be diverted to either the Jones Island or South Shore Water Reclamation Facilities. Some areas are tributary only to Jones Island and some only to South Shore. Communities that discharge to Subsystem 6 are the cities of Cudahy, Greenfield, Milwaukee, St. Francis, and West Allis, and the Village of West Milwaukee.

ID #: Name: Phase Start Finish Cost C06021 S. 27th Howard to Euclid MIS Rehab Planning Jan-13 Jun-14 $63,550 Design Apr-15 Jul-16 $559,481 Construction May-19 Sep-20 $4,410,039 Post-Constr. Oct-20 Feb-21 $6,865 Total $5,039,935 Previously Approved Total $5,086,315 Increase/(Decrease) ($46,380)

Project Description The purpose of the project is to reduce the risk of a sanitary sewer overflow due to the failure of the South 27th Howard to Euclid MIS and provide a cost-effective service life of an additional 50 years or more. The project scope is to rehabilitate approximately 3,750 feet of 39-inch special section MIS sewer and associated manholes between South 27th Howard to Euclid Avenue. This project is recommended based on the sewer televising inspection program review. Seven out of nine sections of sewer from West Howard Avenue to West Euclid Avenue have been rated as 4 or 5 based on Veolia’s PACP sewer review (with 5 being the worst rating). Typical defects include deterioration of concrete. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The project is expected to have a positive Operating Budget Impact as the abandonment of 750 lineal feet of sewer will reduce the need for sewer televising.

Subsystem 7 – Low Level Branch

Metropolitan Interceptor Sewer System Subsystem 7 in the east central portion of Milwaukee County consists of the combined sewer service area of Milwaukee and some scattered separate sanitary sewer areas surrounding it. These flows are tributary to Jones Island only. The communities discharging to Subsystem 7 are the cities of Milwaukee and St. Francis. ID #: Name: Phase Start Finish CostC07034 Menomonee River MIS Rehab Design Feb-13 Dec-13 $153,722

Construction Dec-13 Jul-16 $48,003Total $201,725Previously Approved Total $201,725Increase/(Decrease) $0

Project Description The purpose of the project is to reduce the risk of a sanitary sewer overflow due to the failure of Menomonee River stream bank. The scope of this project is to design and implement a solution to stabilize the stream bank along the Menomonee River between South 35th Street and South 33rd Street to ensure that the MIS in this location does not suffer a foundation failure, crack or break, and spill sewage. The District will cooperate with the Redevelopment Authority of the City of Milwaukee (RACM) as they will be completing the design and construction as part of a larger redevelopment project in the Menomonee Valley. RACM will meet District specifications related to this MIS as part of their design and the District will fund the work related to stabilizing the bank along the MIS. There is no change in Total Project Cost. The Operating Budget Impact is not known at this time.

General Interceptor Sewer System

Metropolitan Interceptor Sewer System Projects grouped in this category are projects that benefit the overall Interceptor Sewer System or cannot be attributed to a single subsystem. ID #: Name: Phase Start Finish CostC98044 MIS Abandonment Design $182,756

Construction $1,466,846Total $1,649,602Previously Approved Total $1,649,601Increase/(Decrease) $1

Project Description The purpose of this project is to reduce the total length of sewers that the District is responsible for by abandoning sewers that are no longer necessary. Abandoning unnecessary MIS segments reduces infiltration and inflow (I/I) into the District’s system, maintenance costs associated with these sewers and the likelihood of overflows. This project consists of sewer abandonments in multiple locations including:

x In North Sherman, north of Dean, in conjunction with a Brown Deer sewer replacement project; x Along and under the Menomonee River near 84th Street (extended); x In Oregon (Menomonee Special wood sewer) from Water Street to 5th Street; x In West Dickinson; x West Center St; x 1st/Water/Seeboth; x Kinnickinnic River Parkway; x Fond du lac and Congress

The change in Total Project Cost is de minimis. The project is expected to have a positive Operating Budget Impact as reducing the amount of I/I that must be treated as well as reducing the amount of sewer that requires periodic maintenance costs should reduce operation and maintenance (O&M) costs.

ID #: Name: Phase Start Finish Cost C98045 Conveyance Gate Rehab Design Jan-10 Nov-14 $790,596 Construction Dec-11 May-16 $5,746,482 Post-Constr. Jan-15 Oct-16 $18,743 Total $6,555,821 Previously Approved Total $6,245,623 Increase/(Decrease) $310,198

Project Description The purpose of this project is to ensure the reliability and effectiveness of controlling flow within the District’s conveyance system to maximize wastewater treatment and minimize sewerage overflows and basement backups. The project scope is to design and construct the rehabilitation of 28 gate systems at drop shaft sites and diversion chambers within the District conveyance system. The work will include, as applicable, the gate position indicators, gate actuators, and gates used in the operation of the conveyance system. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected from this project.

ID #: Name: Phase Start Finish Cost C98047 Access Hatch Covers Construction Jan-13 Dec-21 $1,823,511 Total $1,823,511 Previously Approved Total $1,800,100 Increase/(Decrease) $23,411

Project Description The purpose of this project is to improve the reliability of conveyance facility assets. The project scope is to design and construct replacement access hatch covers throughout the conveyance system. Hatch covers are typically installed along with new sewers for the purpose of providing ongoing access to conveyance facilities for the purpose of maintenance and monitoring. The useful life of a hatch cover is typically less than the typical sewer and thus requires a more frequent replacement schedule. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost C98048 Gravity Overflow Conversion to Pump

Overflow Planning Dec-11 Dec-14 $57,936

Prelim. Eng Jan-16 Jun-17 $175,259 Design Nov-17 Jun-19 $231,438 Construction Sep-19 Mar-22 $5,850,831 Post-Constr. Apr-22 May-22 $6,085 Total $6,321,549 Previously Approved Total $6,160,914 Increase/(Decrease) $160,635

Project Description The purpose of this project is to evaluate conversion of gravity overflows to pumped overflows. A gravity overflow is currently the relief for many locations in the District system and during severe precipitation events flow can be impeded from discharging into the receiving waters because the water level in the receiving water is higher than the water surface elevation in the MIS. Receiving waters can also backflow into the sewer system. This increases the sewage level in the MIS system, potentially increases the sewage level in local systems and potentially increases the probability of basement backup occurrences. The project scope consists of planning, preliminary engineering, design, and construction to convert gravity overflow points to pumped overflow points. At a minimum, the addition of a device known as a duck bill to prevent water from backing up from the receiving water into the sewer system should be evaluated. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

Project Description The purpose of this project is to ensure the reliability and effectiveness of controlling flow within the District’s conveyance system to maximize wastewater treatment and minimize sewerage overflows and basement backups. The project scope is to design and construct the rehabilitation of 18 gate systems at drop shaft sites and diversion chambers within the District conveyance system. The work will include, as applicable, the gate position indicators, gate actuators, and gates used in the operation of the conveyance system. The scope was transferred from project C98045. The change in Total Project Cost is due to revised construction cost estimates. No significant Operating Budget Impact is expected from this project.

Project Description Approximately 75 miles of Metropolitan Interceptor Sewer (MIS) has been identified that currently functions primarily as local municipal sewer. Discussion with the appropriate municipalities regarding the transfer of these sewers from the MMSD to the local municipality is ongoing. Bringing these sewer segments up to at least a National Association of Sewer Service Companies (NASSCO) 3 rating would allow the municipality some assurance that the segments should have at least another 20 years of service life. This is one of the conditions needed to obtain municipal approval of the transfer of these sewers from the District to the municipality. Ideally, these sewers would have had ownership transferred either at the time of municipal incorporation as a City or Village, or when the sewers were originally constructed by MMSD. The scope includes addressing all identified NASSCO 4 and 5 defects in the segments of MIS that may have ownership transferred to a local municipality. This effort is being coordinated with the District’s Asset Management Program (AMP). When sewers receive condition ratings of 4 or 5, the AMP develops plans to rehabilitate or replace the sewers. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The project is expected to have a positive Operating Budget Impact.

ID #: Name: Phase Start Finish Cost C98051 Conveyance Gate Rehab, Phase 3 Design Jun-15 Apr-16 $363,401 Construction Sep-16 Nov-17 $2,706,353 Post-Constr. Jan-18 May-18 $5,385 Total $3,075,139 Previously Approved Total $2,930,154 Increase/(Decrease) $144,985

ID #: Name: Phase Start Finish Cost C98052 Miscellaneous Sewer Rehab Design Apr-16 Apr-17 $1,000,203 Construction Sep-19 Feb-20 $7,890,085 Post-Constr. Apr-20 Jul-20 $4,939 Total $8,895,227 Previously Approved Total $8,622,598 Increase/(Decrease) $272,629

ID #: Name: Phase Start Finish Cost C98053 Conveyance Gate Rehab, Phase 4 Design Nov-15 Dec-16 $432,512 Construction Apr-17 Apr-18 $2,881,971 Post-Constr. Jun-18 Oct-18 $5,905 Total $3,320,388 Previously Approved Total $3,307,768 Increase/(Decrease) $12,620

Project Description The purpose of this project is to ensure the reliability and effectiveness of controlling flow within the District’s conveyance system to maximize wastewater treatment and minimize sewerage overflows and basement backups. The project scope is to design and construct the rehabilitation of eight gate systems at drop shaft sites and division chambers within the District conveyance system. The work will include, as applicable, the gate position indicators, gate actuators, and gates used in the operation of the conveyance system. The scope was transferred from project C98045. The change in Total Project Cost is due to revised construction cost estimates. No significant Operating Budget Impact is expected from this project.

ID #: Name: Phase Start Finish Cost C99002 Operator Contribution to CIP Six-Year Forecast Total $797,590 Total $797,590 Previously Approved Total $0 Increase/(Decrease) $797,590

Project Description The operating contract with Veolia Water Milwaukee (VWM) includes provisions for VWM to participate on current and planned District capital projects. The scope of this project includes VWM work in reviewing the annual Capital Budget, reviewing and creating requests for new projects, attending meetings, and participation in the implementation of capital projects. Operator Contribution to CIP accounts do not have an approved Total Project Cost. The 2016 expenditures are budgeted at $797,590; the six-year long-range financing plan includes $595,984. No significant Operating Budget Impact is expected from this project. ID #: Name: Phase Start Finish Cost C99004 Allowance for DOT Reimbursements Six-Year Forecast Total $1,128,235 Total $1,128,235 Previously Approved Total $0 Increase/(Decrease) $1,128,235

Project Description This project represents the District’s share of costs associated with WisDOT relocation of MMSD assets located within WisDOT right-of-way in the Zoo Interchange Project. Allowance accounts do not have a Total Project Cost. No significant Operating Budget Impact is expected from this project.

Inline Storage System Drop Shafts Drop Shafts are the main access point to the Inline Storage System (ISS), or Deep Tunnel. They are vertical structures where the near-surface collector sewer system and select interceptor sewers terminate and flow is allowed to “drop” to the 300–foot-deep, horizontal ISS. There are no funded projects in 2016 Near-Surface Collector Sewers Near-Surface Collector Sewers are designed to allow flow beyond the design capacity of interceptor sewers to be diverted to the Inline Storage System. These sewers provide a path from the interceptor sewers to the drop shafts. There are no funded projects in 2016 Combined Sewer Overflow Structures Combined Sewer Overflow (CSO) Structures are used when flows exceed storage, conveyance, and treatment system capacity. When the system is filled to capacity, it is designed to overflow into Milwaukee-area rivers and Lake Michigan. Therefore, these structures only become necessary in an extreme wet weather event. During such an event, rainwater enters the system at a greater rate than the system design. To avoid an immediate public health issue of wastewater in basements and system damage, excess flows are allowed to discharge from the Inline Storage System and the MIS system via the CSO Structures. ID #: Name: Phase Start Finish Cost I03003 CSO Rehab - Hawley Rd (C001) Design Jan-15 Oct-15 $190,532 Construction Feb-16 Nov-16 $687,545 Post-Constr. Jan-17 May-17 $4,047 Total $882,124 Previously Approved Total $1,783,318 Increase/(Decrease) ($901,194)

Project Description The purpose of this project is to reduce the risk of basement backup within the project’s tributary area during wet weather by extending the useful life of combined sewer overflow (CSO) facility. The project scope is to design and construct the rehabilitation of the 84-inch CSO facility to the Menomonee River near Hawley Road. The pipe runs from West Vliet Street to the Menomonee River, approximately 2,400 linear feet and terminates in a 102” X 60” box sewer outfall. A condition assessment of this facility revealed deterioration, cracking, and exposed soil in the outfall pipe. The scope also includes minor efforts to install an access platform within BS0502 and replacing the grating within DC0508. Both of these facilities are key assets in managing flow during wet weather. The decrease in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost I03008 CSO102 Rehabilitation - Humbolt Planning Jul-14 Dec-15 $63,199 Design May-19 Feb-20 $227,672 Construction May-20 Jan-21 $844,549 Post-Constr. Feb-21 Jun-21 4333 Total $1,139,753 Previously Approved Total $1,111,332 Increase/(Decrease) $28,421

Project Description The purpose of this project is to reduce the risk of basement backups within the project’s tributary area during wet weather by extending the useful life of a combined sewer overflow (CSO) facility. The project scope consists of planning, design and construction related to a 72-inch CSO facility discharging to the Milwaukee River near Humboldt Avenue. A condition assessment of the facility identified significant cracking, numerous holes with soil visible and significant infiltration. There are a total of eight CSO facilities that provide wet weather relief within this leg of the Inline Storage System, therefore this specific CSO facility may not be required or could potentially be downsized. Planning analysis will determine if the facility is required in order to provide the defined level of service, or if it can be downsized or abandoned. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected from this project.

ID #: Name: Phase Start Finish Cost I06001 NS12 Collector System Improvements Design Jul-16 Apr-18 $517,524 Construction Sep-18 Apr-19 $3,366,404 Post-Constr. May-19 Sep-19 $63,088 Total $3,947,016 Previously Approved Total $0 Increase/(Decrease) $3,947,016

Project Description The purpose of this project is to improve conveyance to the NS12 collector system. The improvements were recommended as part of the root cause analysis for CSO145. This project will help prevent future unintended CSOs and surface flooding as a result of blown manhole covers. The scope of this project will include the construction of two new structures, 140 feet of 84-inch pipe, and level and flow monitoring equipment. The change in Total Project Cost is because this is a new project. No significant Operating Budget Impact is expected from this project.

ID # Name Cost

I98001 Allowance for Closeout

Six-Year Forecast Total $579,860 Project Description The purpose of this project is the establishment of the account that provides a source of funds to address outstanding issues. By planning for the payment of these expenditures, this account supports the District’s goal of maintaining a stable tax rate over the planning horizon. Allowance accounts do not have an approved total project cost. The 2016 Capital Budget includes $579,860. No significant Operating Budget Impact is expected from this project.

Central Control System

Conveyance System Central Control The Central Control System allows remote operation of the conveyance system. The system design and operation are focused on maximizing the effectiveness and efficiency of storing and conveying wastewater to the Water Reclamation Facilities to avoid surcharging. A single operator uses incoming flow data and software-produced data to determine if flow should be diverted from one Metropolitan Interceptor Sewer (MIS) subsystem to another or to the Inline Storage System (ISS).

ID #: Name: Phase Start Finish Cost K01008 SCADA Back-up Communication Systems Design Jan-07 Sep-15 $320,934 Construction Nov-15 Mar-16 $445,967 Total $766,901 Previously Approved Total $764,552 Increase/(Decrease) $2,349

Project Description The purpose of this project is to further increase the reliability of the conveyance Supervisory Control and Data Acquisition System (SCADA) by providing a backup system for the most critical sites within the system. The project scope is to design, procure, and install a backup communication system for 40 critical facilities within the conveyance system to achieve near 100 percent reliability in communication with the specific goal of no more than five minutes of downtime in communication between sites at any given time. The conveyance SCADA system provides communication between remote sites and central control located at the Jones Island Water Reclamation Facility. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost K01012 Conveyance SCADA Upgrade Prelim. Eng Nov-13 Jan-15 $112,168 Design Jun-15 Dec-15 $971,764 Construction Oct-15 Dec-17 $5,640,995 Total $6,724,927 Previously Approved Total $5,520,897 Increase/(Decrease) $1,204,030

Project Description The purpose of this project is to ensure the reliability of the central control system to maximizing the effectiveness and efficiency of storing and conveying wastewater to the Water Reclamation Facilities to avoid surcharging. The project scope is to evaluate alternatives, design, and construct the replacement for the District’s existing conveyance Supervisor Control and Data Acquisition (SCADA) system as it is reaching the end of its useful life. The conveyance SCADA system allows a single operator to use incoming flow data and software-produced data to determine if flow should be diverted from one Metropolitan Interceptor Sewer (MIS) subsystem to another or to the Inline Storage System (ISS). Alternative hardware and software systems will be demonstrated on non-critical portions of the system and deploying the proven system to replace the entire system. The increase in Total Project Cost is primarily due to increased design and construction phase cost estimates. In unforeseen environmental assessments, communication equipment, and construction cost required to complete the project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost K01013 Replace Level Sensors in ISS Structures Design Jun-14 Mar-15 $107,338 Construction Jul-15 Feb-16 $456,528 Total $563,866 Previously Approved Total $664,866 Increase/(Decrease) ($101,000)

Project Description The purpose of the project is to ensure the availability and to improve the accuracy of data used in operating the Inline Storage System (ISS) during peak wet weather events (i.e., time to fill tunnel, volume reserved for sanitary sewage, etc.), reporting of Combined Sewer Overflow (CSO) events, WPDES permit compliance, and alerting staff to potential issues with the MIS system. The project scope is to design and construct the replacement of existing ultrasonic level sensors installed in 24 ISS approach channels and 12 junction chambers, which are reaching the end of their service life. This equipment is over 20 years old. The project objectives are to improve the accuracy of flow measurements, the range of level measurement, and safety conditions associated with maintaining the instruments. The scope associated with the replacement of level sensors installed in 12 ISS approach channels and eight junction chambers was moved to project K01014. The decrease in Total Project Cost is primarily due to changes to safety requirements for project completion. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost K01014 Replace Level Sensors in ISS

Structures-Phase II Design Jun-15 Apr-16 $144,286

Construction Jul-16 Apr-17 $519,694 Total $663,980 Previously Approved Total $0 Increase/(Decrease) $663,980

Project Description The purpose of the project is to ensure the availability and improve the accuracy of data used in operating the Inline Storage System (ISS) during peak wet weather events (i.e., time to fill tunnel, volume reserved for sanitary sewage, etc.), reporting of Combined Sewer Overflow (CSO) events, WPDES permit compliance, and alerting staff to potential issues with the MIS system. The project scope is to design and construct the replacement of existing ultrasonic level sensors installed in 12 ISS approach channels and eight junction chambers, which are reaching the end of their service life. This equipment is over 20 years old. The project objectives are to improve the accuracy of flow measurements, the range of level measurement, and safety conditions associated with maintaining the instruments. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

Watercourse and Flood Management

There are six watersheds within the District’s service area: Kinnickinnic River, Lake Michigan Tributary Drainage, Menomonee River, Milwaukee River, Oak Creek, and Root River. The District has discretionary authority to maintain these waterways. In the past, maintenance has included: repair and removal of concrete, removal of sediment and flow-impeding objects, and deepening and widening channels for flood management purposes.

$0

$5,000

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2014 2015 2016 2017 2018 2019 2020 2021


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Management Projects

Flooding and erosion of these watercourses threaten public health and private property. Consequently, there is significant public interest in flood management and abatement. Because watersheds boundaries do not necessarily follow municipal boundaries, reducing the risk of flooding requires looking at the watershed as a whole, including the complete river system and its tributaries.

The District is responsible for managing surface water for two reasons. First, managing flooding promotes efficient use of the sewerage system by reducing infiltration and inflow. Second, a regional government is the most appropriate entity to address watershed issues that involve multiple municipalities. A watershed is an area of land where all of the water, on the surface and underground, drains to a common place such as a lake, river, or ocean. The District’s authority to manage surface water is in Wis. Stats., sec. 200.31(1).

In the mid-1980s, the District requested that the Southeastern Wisconsin Regional Planning Commission (SEWRPC) recommend watercourses for District action. In response, SEWRPC prepared both a policy plan and a system plan. Considerations favoring District action were (1) the watershed included multiple municipalities, (2) the watershed had a potential for significant harm from the regional flood, and (3) the watershed had a history of investment by the District’s predecessors. The goal was to separate issues that should be addressed locally from issues that needed regional action. In 2001, the District codified the recommendations in MMSD Rules, Chapter 13. Chapter 13 lists the watercourses where the District may take action. Municipalities may petition the District’s Commission to add watercourses to the list. District action is discretionary and limited to abating the most severe floods. Listing does not guarantee any particular level of protection. Notably, municipalities are responsible for abating smaller floods and flooding associated with watercourses that are not listed.

In 1998, the District and local municipalities began the planning process for the development of an updated Watercourse System Management Plan. Flood abatement alternatives have been developed for each of the six watersheds. Phase I of the planning process incorporated the results of past planning efforts such as the 1990 Watercourse System Plan developed by the SEWRPC as well as new technical information on land use, peak stormwater flows, estimated damages, and other hydrologic and hydraulic information.

The process has solicited input from affected municipalities and other stakeholders, including the Wisconsin Department of Natural Resources (WDNR), the Wisconsin Department of Transportation, Milwaukee County, SEWRPC, and environmental groups. Meetings with stakeholders in each watershed focused on data gathering, problem identification, and the development and prioritization of potential structural and nonstructural alternatives for flood management. Phase I was completed in 2000. Phase II of the process has allowed area residents to comment on the design and location of recommended structural and nonstructural flood management measures.

In addition, the District established a Watercourse Policy Advisory Group to recommend policy on the District’s responsibility relating to flood management. Recommendations were reported to and approved by the Commission in April 1998 regarding the relationship between municipal stormwater management and District flood management activities, funding responsibilities, procedures for project prioritization, and policies for potential interim projects and riparian management.

The 2016 Capital Budget includes $24.5 million for work on various watercourse projects. Please refer to project detail on the following pages for information on each project’s purpose, scope, cost estimate, and impact on the O&M budget.

Because watersheds boundaries do not necessarily follow

municipal boundaries, reducing the risk of flooding requires

looking at the watershed as a whole.

The District has spent approximately $387million since 1995 on removing structures from the floodplain and concrete on concrete-lined channels. The District plans to spend another $465 million in order to make the watersheds safer and to reduce the risk of flooding. Below is a table showing the District’s involvement on each of the six watersheds.

1995 - 2014 2015 - Future

Watershed Spending

(in millions)

# of structures no longer in

the floodplain

Miles of concrete lined

channel removed

Spending (in millions)

# of structures remaining in the

floodplain

Miles of concrete lined and

enclosed channel remaining

Milwaukee River $133.4 2,092 1.9 $92.7 403 0 Lake Michigan $0.5 0 0 $5.0 8 0 Menomonee River $212.8 264 0.8 $214.5 143 10.9 Kinnickinnic River $24.3 65 0.1 $143.3 587 8.8 Root River $14.1 97 0 $2.0 19 0 Oak Creek $1.7 0 0 $6.0 13 0 Total $386.8 2,518 2.8 $464.5 1,173 19.7

1995- Future: Number of structures removed, by watershed.

1995-Future: Total District spending on floodproofing, by watershed.

Milwaukee River Watershed The Milwaukee River Watershed drains an area of about 700 square miles within Fond du Lac, Dodge, Sheboygan, Ozaukee, Washington, and Milwaukee counties. The Milwaukee River is nearly 100 miles in length, although only a small portion of the mainstream is under District jurisdiction. Approximately 25 percent of the watershed is developed, mainly within Milwaukee County. The 13 mile portion of the mainstream of the Milwaukee River which is under District jurisdiction includes the reach from the Milwaukee County boundary at County Line Road downstream to the former North Avenue Dam located 1,000 feet south of East North Avenue. Preliminary engineering estimates 389 structures are within the one percent annual probability floodplain.

The District also has jurisdiction over the following tributaries of the Milwaukee River: x Lincoln Creek, which is approximately nine miles

long, drains 20 square miles and is located in the City of Milwaukee, the Village of Brown Deer, and the City of Glendale. An estimated 2,025 structures are no longer within the one percent annual probability floodplain with completion of the Lincoln Creek project in 2002.

x Southbranch Creek, which drains an area of approximately three square miles. About 54 percent is within the Village of Brown Deer, 44 percent is within the City of Milwaukee, and 2 percent is within the Village of River Hills. Since the District completed flood management projects within this watershed, there are no structures within the one percent annual probability floodplain.

x Indian Creek, which drains an area of about three square miles. Approximately 6 percent is within the City of Glendale, 12 percent is within the Village of Bayside, 47 percent is within the Village of Fox Point, and 35 percent is within the Village of River Hills. Since the completion of the flood management projects within this watershed, there are no structures within the one percent annual probability floodplain.

x Beaver Creek, which drains an area of about four square miles. Approximately 43 percent of the area is within the City of Milwaukee and 57 percent is within the Village of Brown Deer. There are an estimated 13 structures within the one percent annual probability floodplain.

x Brown Deer Park Creek, which drains an area of about two square miles. Approximately 71 percent is within the City of Milwaukee, 14 percent is within the City of Glendale, and 15 percent is within the Village of Brown Deer. There is an estimated one structure within the one percent annual probability floodplain.

ID #: Name: Phase Start Finish Cost

W10001 Milwaukee River Flood Mgt Planning Mar-04 Dec-18 $705,408 Prelim. Eng Jan-24 Dec-29 $43,794,593 Total $44,500,001 Previously Approved Total $43,717,803 Increase/(Decrease) $782,198

Project Description The purpose of this project is to reduce the risk of flooding to structures along the Milwaukee River within the District’s jurisdiction. The project scope consists of continuing the planning phase necessary to identify flooding areas within the District’s jurisdiction. The current project costs reflect the flood risk reduction for approximately 389 homes by floodproofing, elevation, or acquisition. The increase in Total Project Cost is due to the addition of an update to the Milwaukee River Watercourse Management Plan and of inflation and updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W11030 30th Street Corridor Wet Weather Relief Design Jun-14 Apr-23 $6,285,565 Construction Jun-16 Jul-25 $42,683,116 Post-Constr. May-17 Aug-30 $305,647 Total $49,274,328 Previously Approved Total $46,130,930 Increase/(Decrease) $3,143,398

Project Description The purpose of the project is to reduce recurring property and economic damage incurred in the North 30th Street Industrial Corridor due to limitations in District owned combined sewer and City of Milwaukee owned stormwater conveyance capacity during the one percent annual probability flood event. The project will also reduce sewer overflows that result from the limited stormwater conveyance capacity. The project scope is to design and construct three stormwater detention basins, the related piping connecting the basins, and discharge piping to Lincoln Creek. Total storage is currently estimated to be 40 million gallons. The 30th Street Industrial Corridor has reported over $30 million in damage from previous storms. The City is sharing the cost of the project. This scope is consistent with the District’s Integrated Regional Stormwater Management Program. The increase in Total Project Cost is due to revised cost estimates for the construction as a result of revised modeling results. The Operating Budget Impact is not known at this time.

Menomonee River Watershed The Menomonee River Watershed drains an area of approximately 136 square miles. Communities in this watershed include the cities of Brookfield, Greenfield, Mequon, Milwaukee, New Berlin, Wauwatosa, West Allis and the villages of Butler, Elm Grove, Germantown, Greendale, Menomonee Falls, and West Milwaukee. Most of the lower two-thirds of the watershed are nearly fully developed in Milwaukee, Wauwatosa, West Allis, Elm Grove, and Brookfield. Significant developable land still exists in Mequon, Menomonee Falls, and Germantown. Major tributaries to the Menomonee River within Milwaukee County include Underwood Creek, Honey Creek, Grantosa Creek, Little Menomonee River, Woods Creek, South Branch Underwood Creek, and Schoonmaker Creek. There are an estimated 143 structures within the one percent annual probability floodplain. Completed projects have removed 264 structures from the one percent annual probability floodplain.

ID #: Name: Phase Start Finish Cost W20018 Concordia Avenue Prelim. Eng Apr-12 Apr-16 $168,445 Design Mar-15 Feb-23 $3,790,075 Construction Nov-15 Dec-26 $903,481 Total $4,862,001 Previously Approved Total $3,682,458 Increase/(Decrease) $1,179,543

Project Description The purpose of this project is to protect eleven properties and twelve residential structures from the one percent annual probability floodplain in the vicinity of the Menomonee River Parkway and Concordia Avenue. The project scope is to either floodproof or to purchase and remove the twelve residential structures. The increase in Total Project Cost is due to the addition of two structures and increased acquisition cost of one structure within the one percent annual probability floodplain. Further evaluation is needed for ten of the structures and as the scope is developed, the total project cost will be updated in the 2016 budget. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20020 Menomonee Valley Flood Mgt (Falk) Construction Mar-11 Sep-16 $970,048 Post-Constr. Sep-16 Feb-17 $10,871 Total $980,919 Previously Approved Total $976,571 Increase/(Decrease) $4,348

Project Description The purpose of this project is to reduce the risk of flooding caused by the Menomonee River for the structures within the Industrial Complex owned and operated by Rexnord Corporation (formerly Falk Corporation) located at 3001 West Canal Street. The Menomonee River Phase 2 Watercourse Management Plan identified the above structures as subject to flooding during the one percent annual probability flood event. The project scope will provide funding to Rexnord Corporation to perform design and construction of levee reconstruction and improved interior drainage. The change in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20021 Menomonee River Stream Management - CR Design Jan-10 Jan-11 $763,367 Construction May-13 Nov-14 $5,136,941 Post-Constr. Dec-15 Dec-18 $29,692 Total $5,930,000 Previously Approved Total $5,659,999 Increase/(Decrease) $270,001

Project Description The purpose of this project is to improve aquatic habitat and eliminate the migratory fish passage barrier for 17 miles of the Menomonee River and 20 miles of tributary streams. The project scope is to remove of 3,700 feet of concrete from the bed of the Menomonee River in two phases. Project W20021 is the first phase and includes design and construction of the upper 1,100 feet with the steepest gradient and highest velocities. Pools and riffles with a rock substrate will replace the concrete liner. Project W20023 is the second phase and includes design and construction of the lower 2,600 feet of the channel. The increase in Total Project Cost is due to additional concrete construction work added to the project. No significant Operating Budget Impact is expected. This project was awarded grants totaling $1,303,000 from the Fish and Wildlife Service and EPA Great Lakes Restoration Initiative.

ID #: Name: Phase Start Finish Cost W20023 Phase II Menomonee River Stream Mgt Design Dec-12 Aug-14 $221,938 Construction Oct-14 Feb-16 $2,880,445 Post-Constr. Mar-16 Dec-18 $97,617 Total $3,200,000 Previously Approved Total $10,905,689 Increase/(Decrease) ($7,705,689)

Project Description The purpose of this project is to improve aquatic habitat, reduce public safety risk, and replace deteriorating assets. The project scope is to design and construct replacement of concrete channel liner with a more natural channel for approximately 2,600 linear feet of channel. The concrete channel liner is also approaching its estimated life expectancy and will need to be replaced in the near future. The USACE will finance 65 percent of the project costs, up to a maximum contribution of $5,000,000. The decrease in Total Project Cost is due to the U.S. Army Corps of Engineers (USACE) - Detroit District committing partnership funding to the project thereby reducing the cost to MMSD. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20025 Removal of 5 Low Gradient Barriers Prelim. Eng Dec-12 Oct-13 $20,304 Construction Jan-14 Sep-15 $266,382 Post-Constr. Oct-15 Jul-16 $1,261,027 Total $1,547,713 Previously Approved Total $1,208,719 Increase/(Decrease) $338,994

Project Description The purpose of this project is to improve hydraulic function, aquatic connectivity, and habitat along more than 34 miles of stream. The project scope is to remove five manmade barriers to fish passage in the Menomonee River channel. The five channel locations will be modified through bioengineering to restore natural hydraulic function and to improve habitat by mimicking the pool and riffle sequences of the natural river system. Under existing conditions, fish passage from Lake Michigan to the upper reaches of the Menomonee River Watershed is restricted in low (base) flow conditions. Each barrier completely spans the river channel. Three of the crossings are from a single 24-inch MIS that crosses the river at three locations. At each of these locations the sewer creates a 1 to 1.5 foot drop that impairs fish passage during low-flow conditions. The fourth location is an old low dam/grade control structure with a 2 to 3 foot drop constructed in the 1930s. The last barrier is an old concrete road crossing that creates a one-foot drop and then a shallow area ten feet in width behind the drop that is impassable under low-flow conditions. The increase in Total Project Cost is due to additional Metropolitan Interceptor Sewer (MIS) lining and actual bids received for the project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20027 Western Milwaukee Phase 2A Design Apr-14 Nov-14 $579,045 Construction Feb-15 Jan-16 $1,785,504 Post-Constr. Aug-16 Jun-21 $49,760 Total $2,414,309 Previously Approved Total $12,020,563 Increase/(Decrease) ($9,606,254)

Project Description The purpose of this project, along with project W20017, W20028, and W20029, is to protect an estimated 62 structures from the one percent annual probability floodplain along the Menomonee River in the Western Milwaukee corridor. These projects are a component of the Phase II Watercourse Management Plan for the Menomonee River Watershed, which revealed overbank flooding in the vicinity of West State Street on the west side of Milwaukee. The project scope is to design and construct a floodplain levee and daylight the culvert containing Schoonmaker Creek on the old Sears Warehouse property. The floodplain levee will be constructed along State Street and will tie into the Hart Park levee previously constructed by the District. Daylighting the culvert and excavation of the Sears property will lower the floodplain. The combination of these activities will remove six properties from the one percent annual probability floodplain. The decrease in Total Project Cost is due to the reallocation of costs associated to Schoonmaker Creek work into W20028, leaving only work associated to Western Milwaukee within W20027. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20029 Western Milwaukee Real Estate &

Environmental Assessment Design Apr-14 Dec-22 $7,066,773

Construction Apr-14 Dec-19 $326,731 Post-Constr. Jul-14 Mar-20 $18,504 Total $7,412,008 Previously Approved Total $7,196,976 Increase/(Decrease) $215,032

Project Description The purpose of the project, along with project W20017, W20027, and W20028, is to protect an estimated 62 structures from the one percent annual probability floodplain along the Menomonee River in the Western Milwaukee corridor. These projects are a component of the Phase II Watercourse Management Plan for the Menomonee River Watershed, which revealed overbank flooding in the vicinity of West State Street on the west side of Milwaukee. The project scope is to purchase property rights and structures required for projects W20017, W20027, and W20028. The Commission approved an acquisition plat, allowing the purchase of 16 individual property rights from ten property owners. To date, 13 of the 16 property rights have been purchased. The scope also includes demolition of structures purchased as part of the property rights acquisition. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions and the addition of a post construction phase. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W20031 Menomonee River Estuary Study Planning Jan-16 Nov-16 $64,999 Total $64,999 Previously Approved Total $0 Increase/(Decrease) $64,999

Project Description This project is a watercourse management planning study for the Menomonee River estuary between S. 29th Street and Canal Street, which is the river-dominated section of the estuary. The study will be undertaken contingent on Commission approval of the Watercourse Policy revision and the Commission approval of the municipal request for jurisdiction. Approximately 24 structures have been preliminarily identified within the floodplain of the Menomonee River Estuary based on recent updated SEWRPC floodplain mapping. There is no change in Total Project Cost as this is a new project. No Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W21006 Phase II - Underwood Creek Reach 1, Phase II -

CR Design Sep-13 Apr-16 $1,023,979

Construction Mar-16 Oct-17 $9,428,255 Post-Constr. Jul-17 May-23 $129,055 Total $10,581,289 Previously Approved Total $11,449,053 Increase/(Decrease) ($867,764)

Project Description The purpose of the project is to reduce public safety risk, provide wetland mitigation, improve aquatic habitat, and to satisfy Wisconsin Department of Natural Resources and U.S. Army Corps of Engineers (USACE) requirements for the Milwaukee County Grounds Floodwater Management Facility project. The project scope includes the design and construction of removing approximately 4,400 linear feet of concrete channel liner on Underwood Creek from Canadian Pacific Railway Bridge to the confluence with the Menomonee River, and replacing it with a bioengineered channel. The project will construct a series of pools and riffles in a low-flow channel to enhance the natural functions of Underwood Creek. The project also includes reconstructing channel in areas where the riparian floodplain was lowered to recreate a more aesthetic and natural watercourse corridor. The project maintains the current level of flood management. In partnering with the USACE, the USACE will finance 65 percent of the project costs, up to a maximum contribution of $10,000,000. The decrease in Total Project Cost is due to reduced construction cost estimates. This reduction is partially offset by increases due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W21008 Underwood Creek Reach 1 Phase II Wetland Design May-16 Nov-16 $200,305 Construction Feb-17 Jan-18 $788,995 Post-Constr. Jan-18 May-23 $29,974 Total $1,019,274 Previously Approved Total $912,523 Increase/(Decrease) $106,751

Project Description The purpose of the project is to meet Wisconsin Department of Natural Resources and U.S. Army Corps of Engineer permit requirements for previously completed District projects (W20004 and W21005) to mitigate wetlands impacted by the construction of those projects. The project scope is to design and construct a solution to mitigate wetlands impacted by previous District projects. The wetlands were severely damaged and require re-establishment. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W24005 Honey Creek SEWRPC Feasibility Study Prelim. Eng Dec-09 Jun-16 $369,491 Total $369,491 Previously Approved Total $13,054,701 Increase/(Decrease) ($12,685,210)

Project Description The purpose of the project is to identify any structures along Honey Creek that may be at risk of flooding and to restore the channel to a more natural condition. This project scope consists of updating an existing planning study to incorporate recently revised SEWRPC floodplain maps. This updated planning study will identify flooding areas within the District’s jurisdiction, provide a recommended alternative that will remove approximately 12 structures from the floodplain and incorporate channel rehabilitation, and perform a construction cost estimate of the recommended alternative. The decrease in Total Project Cost is due to the removal of the design, construction and post-construction phases to allow the scope of this project to be only the planning phase of the Honey Creek Flood Management Study. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W24006 Honey Creek USACE Habitat Improvement

Feasibility Study Prelim. Eng Jun-15 Aug-17 $320,546

Total $320,546 Previously Approved Total $0 Increase/(Decrease) $320,546

Project Description The purpose of this project is to assist the US Army Corps of Engineers (USACE) as a Non-Federal Sponsor with a Feasibility Study of the segment of Honey Creek located between Portland Avenue and the North Honey Creek Parkway crossing south of West Bluemound Road. This project will provide the District with a data-intensive study of this segment of Honey Creek with 50 percent of the cost covered by the USACE. Additionally, it is the first necessary step in the determination of whether there is federal interest in the project. If this is the case, the USACE will provide 65 percent of the total project design and construction costs for the segment of Honey Creek located between Portland Avenue and the North Honey Creek Parkway crossing south of West Bluemound Road. The concrete lining of this segment is a District asset that has reached the end of its useful life. This Feasibility Study will potentially lead to federal funding of a portion of the removal costs and overall rehabilitation of this segment of Honey Creek. There is no change in Total Project Cost as this is a new project. No Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W28001 Schoonmaker Creek Planning Dec-13 Sept-16 $343,120 Prelim. Eng Sept-17 Sept-19 $739,890 Design Nov-22 Jan-24 $5,169,160 Construction Jun-24 Jun-26 $59,001,140 Post-Constr. Aug-26 Apr-27 $131,746 Total $65,385,056 Previously Approved Total $0 Increase/(Decrease) $65,385,056

Project Description The purpose of the project is to reduce the economic and public safety impact of major flooding events of residences and roadways within the Schoonmaker Creek watershed. The project scope is to evaluate and recommend solutions and the design and construction of the recommended solution. The assumed solution for budgeting purposes is tunnel and storm sewer. The District recently assumed jurisdiction of Schoonmaker Creek for flood abatement purposes. An estimated 48 structures are within the one percent annual probability floodplain. There is no change in Total Project Cost as this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W28002 Daylighting Schoonmaker Creek Construction Apr-15 Jan-16 $5,968,139 Post-Constr. Aug-16 Jun-21 507527 Total $6,475,666 Previously Approved Total $0 Increase/(Decrease) $6,475,666

Project Description The purpose of the project is to reduce the number of flooded structures in the Menomonee River watershed. The project scope for Western Milwaukee Phase 2A, Contract W20027C01, awarded in February 2015, includes Schoonmaker Creek daylighting and other work related to the Western Milwaukee project. Schoonmaker Creek work originally was budgeted as part of the Western Milwaukee project. Through discussions with the Budget Office, for the purposes of tracking watercourse credits, it is desired to separately track Western Milwaukee costs (allocated to Menomonee River) and Schoonmaker Creek costs; therefore, starting with the construction phase in 2015, the project costs are to be split between two projects (Western Milwaukee W20027 and the proposed new Schoonmaker Creek project W28002). Major elements of the project include the construction of approximately 1,000 feet of earthen levee; removal of approximately 500 feet of concrete box culvert conveying Schoonmaker Creek; channel construction; 110 feet of 2two-cell box culvert construction and outfall with flap gates; Menomonee River bank reconstruction; grading, topsoil, planting of vegetation (no-mow grass on upland areas, native seeding on lowland areas, trees, shrubs, live cutting plantings), and vegetation maintenance. There is no change in Total Project Cost as this is a new project. No significant Operating Budget Impact is expected.

Root River Watershed The Root River Watershed drains an area of about 197 square miles. Approximately 72 square miles are within the District service area. There are 59 square miles within Milwaukee County, 32 are within the City of Franklin, six within the City of Greenfield, one within the City of Milwaukee, eight within the City of Oak Creek, three within the City of West Allis, five within the Village of Greendale, and three within the Village of Hales Corners. There are 13 square miles within Waukesha County, nine within the City of New Berlin and four within the City of Muskego. According to 1990 SEWRPC land use data, approximately 80 percent of the upper watershed located within Milwaukee County and Waukesha County is currently developed, with significant developable land remaining in the communities of Franklin, Oak Creek, New Berlin, and Muskego. There are an estimated 15 structures currently identified as remaining within the one percent probability floodplain. Completed projects have removed 97 structures from the one percent annual probability floodplain.

There are no projects funded in 2016.

Kinnickinnic River Watershed The Kinnickinnic (KK) River Watershed drains an area of about 26 square miles. There are six streams in the watershed, all of which are under District jurisdiction: the KK, Lyons Park Creek, Wilson Park Creek, South 43rd Street Ditch, Villa Mann Creek, and Villa Mann Creek Tributary. The watershed has a significant number of channels, and there are an estimated 587 structures within the one percent annual probability floodplain. Completed projects have removed 65 structures from the one percent probability floodplain. Projects funded in 2016 will help reduce the risk of flooding to properties in the KK Watershed.

ID #: Name: Phase Start Finish Cost W40002 KK River Flood Management - Mainstem

Work (W026) - CR Prelim. Eng Oct-06 Dec-19 $7,966,417

Design Jul-14 Jun-18 $18,934,244 Construction Jun-18 Oct-22 $38,058,509 Post-Constr. Dec-19 Apr-28 $282,542 Total $65,241,712 Previously Approved Total $64,389,759 Increase/(Decrease) $851,953

Project Description The purpose of this project is to reduce the flood risk to structures located in the one percent annual probability floodplain and improve public safety along the Kinnickinnic River from South 6th Street to South 27th Street. The project scope will reduce flood risk to an estimated 391 structures located in the one percent annual probability floodplain and rehabilitate approximately 12,000 linear feet of concrete channel liner from South 6th Street to South 27th Street. The rehabilitation consists of concrete channel liner replacement, where feasible, with a bioengineered channel alternative. The project includes the acquisition of approximately 83 structures in order to widen the channel to convey flood flows within the rehabilitated channel. The project also includes improvements to five vehicular and three pedestrian bridges to increase flood flow capacity. The recommended alternative will consider improved fish passage for targeted species, improved channel aesthetics, maintenance costs impacts, future economic impacts, and riparian neighborhood social impacts into the final design. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. Specific Impacts to the Operating Budget will be determined after the channel rehabilitation method has been selected. It is anticipated that there will be increased vegetation management and channel maintenance costs.

ID #: Name: Phase Start Finish Cost W40007 KK River Reach 3 - CR Prelim. Eng Nov-12 Apr-29 $2,941,153 Design Aug-29 Oct-30 $757,862 Construction Feb-31 Aug-32 $3,215,709 Post-Constr. Sep-32 Sep-37 $135,346 Total $7,050,070 Previously Approved Total $6,960,291 Increase/(Decrease) $89,779

Project Description The purpose of this project is to improve aquatic habitat, reduce public safety risk, and replace deteriorating assets. The project scope is to remove concrete and rehabilitate the channel for approximately 4,200 linear feet of the Kinnickinnic River between South 27th St and West Forest Home Avenue. The concrete lining is 50 years old and has reached the end of its useful life. The District will partner with the USACE – Detroit District. The USACE will finance 65 percent of the project costs, up to a maximum contribution of $10,000,000. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W40010 KK River Watershed Prelim. Eng Sep-16 Jul-18 $1,923,127 Total $1,923,127 Previously Approved Total $0 Increase/(Decrease) $1,923,127

Project Description The purpose of this project is to conduct a study for the recommendations developed in the Kinnickinnic River Watershed Management Plan update. The study will include all project areas within MMSD’s jurisdictional limits in the Kinnickinnic River Watershed with the exception of the section of the Kinnickinnic River between 6th Street – 27th Street. The project scope consists of an alternatives analysis for the components of the conceptual plan recommendations, the obtainment of public and stakeholder feedback, the development of preliminary permits and environmental reports, a limited subsurface investigation, and an engineering report. There is no change in Total Project Cost as this is a new project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W40011 KK River Feasibility Study Planning Jan-16 Jun-16 $311,186 Total $311,186 Previously Approved Total $0 Increase/(Decrease) $311,186

Project Description The purpose of the project is to improve water quality within the Kinnickinnic (KK) River. The project scope is to determine the feasibility of improving water quality within the KK River between the I-94/43 Freeway Overpass and West Becher Street. This area of the KK River is in between 1,200 linear feet of channel reconstructed by the District and a Great Lakes Legacy Act remediation project that removed contaminated sediments. The feasibility study will provide an alternative for design and construction of improvements that will link the two previously mentioned projects, leading to improved water quality. The decrease in Total Project Cost is due to this being a new project. Operating Budget Impact is not known at this time. The District has been awarded a $200,000 Project Grant to fund this work from the National Oceanic and Atmospheric Association’s Great Lakes Habitat Program.

Project Description The purpose of this project is to reduce the risk of flood damage for 40 structures along the Wilson Park Creek during the one percent annual probability flood. The project scope is to design and construct the flood management solution recommended in the Wilson Park Creek Flood Management Planning Study to reduce the risk of structural flooding along the Wilson Park Creek between the Canadian Pacific Railroad Culvert and West Layton Avenue. The scope includes removing 2,500 lineal feet of concrete channel lining, performing channel rehabilitation, constructing a detention basin located on unimproved land currently owned by Central Steel & Wire, Inc., and increasing the capacity of the South 5th Street culvert and South 6th Street culvert. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W45002 Wilson Park Creek Reach 3 - CR Prelim. Eng Sep-08 Apr-16 $1,476,986

Design Sep-20 Jan-22 $733,605

Construction Apr-22 Sep-23 $15,040,986 Post-Constr. Oct-23 Jan-29 $144,879 Total $17,396,456 Previously Approved Total $17,205,307 Increase/(Decrease) $191,149

Oak Creek Watershed

The Oak Creek Watershed drains an area of about 28 square miles. Approximately 64 percent of the area is within the City of Oak Creek, 9 percent in the City of Franklin, 4 percent in the City of Cudahy, 10 percent in the City of Milwaukee, 1 percent in the City of Greenfield, and 12 percent in the City of South Milwaukee. An estimated 14 structures are within the one percent annual probability floodplain.

ID #: Name: Phase Start Finish Cost W50005 Oak Creek Flood Management -

Floodproofing/Acquisition Planning Apr-09 May-16 $316,673

Design Oct-12 Jan-24 $6,012,073 Total $6,328,746 Previously Approved Total $2,288,245 Increase/(Decrease) $4,040,501

Project Description The purpose of this project is to reduce the risk of flood damage to 15 structures within the one percent probability flood. The project scope consists of designing and constructing floodproofing for 15 structures as recommended by SEWRPC. Floodproofing was found to have the highest cost-benefit ratio when looking at options such as eliminating points of flow restrictions within the watershed, adding regional floodwater storage, structure acquisition and demolition, channel cleanout, and no action. Floodproofing is any combination of structural or nonstructural changes or adjustments incorporated in the design, construction, or alteration of individual structures or properties that will reduce flood damages for structures and their contents. The increase in Total Project Cost is due to the addition of floodproofing two commercial structures, acquisition of one commercial structure and two residential structures in the Oak Creek Watershed. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W50006 Oak Creek Watershed Restoration Plan Planning Jan-16 Apr-19 $394,583 Total $394,583 Previously Approved Total $0 Increase/(Decrease) $394,583

Project Description The purpose of this project is to conduct a study to yield data needed to plan and implement future improvements to the watershed area. The project scope will be to support the SEWRPC to develop a restoration plan for the Oak Creek watershed. It will focus on areas such as water quality, recreational access and use, habitat conditions, and targeted stormwater drainage and flooding issues. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

Lake Michigan Drainage

The only tributary in the Lake Michigan Drainage Area under District jurisdiction is Fish Creek; the creek drains an area of about five square miles. Approximately 55 percent is within the City of Mequon, 25 percent is within the Village of Bayside, and 20 percent is within the Village of River Hills. An estimated eight structures are within the one percent probability floodplain. There are no projects funded for 2016.

General Watercourse Projects Projects grouped into this category are projects that do not fit into the various watersheds. The types of projects can be associated with: various studies for planning future watercourse projects; projects that protect or restore natural drainage to prevent future flooding; all other nonspecific items. Projects funded in 2016 will identify and map floodplains.

ID #: Name: Phase Start Finish Cost W62001 Menomonee River Estuary Study Planning Jan-16 Dec-16 $40,011

Total $40,011

Previously Approved Total $0 Increase/(Decrease) $40,011

Project Description The purpose of the project is to plan to reduce the flood risk to structures that will ultimately reduce overflow volume and improve safety in the affected area. The project scope is to conduct a Watercourse Management Plan study for the Menomonee River Estuary between Canal Street and S. 2nd Street, which is the lake-dominated section of the estuary. The study will be undertaken contingent on Commission approval of the municipal request for jurisdiction. There is no change to Total Project Cost as this is a new project. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W62002 Burnham Canal Design Jan-16 Sept-16 $190,828 Construction Dec-16 Jun-20 $8,020,937 Post-Constr. Jun-20 Jul-25 $239,609 Total $8,451,374 Previously Approved Total $0 Increase/(Decrease) $8,451,374

Project Description The purpose of this project is to transform the Burnham Canal into a productive and attractive wetland to improve water quality by removing pollutants from combined sewer overflows if they occur. Other project benefits include providing a low-cost opportunity to beneficially reuse fill from other projects, improving public awareness of the functions and values of wetlands in an area where wetlands are absent, improving fish and wildlife habitat, and improving access for recreation and education. The project scope is to cap contaminated sediment within the canal and to design and construct a wetland within the canal. A public-private partnership will be used to fund the project. The District’s private partner is Miller Compressing, who is required to resolve environmental issues within the canal and has allocated funding to the project. To supplement the work that Miller Compr essing must do, the District will combine funding from Miller Compressing with funding from the Army Corps of Engineers, the US Department of Commerce National Oceanic and Atmospheric Administration (NOAA), the Fund for the Lake Michigan, and other sources. The District will manage the project’s design, construction, and post-construction activities. District expenditures for the construction phase will not begin until outside funding sources, including grants, are obtained. The increase in Total Project Cost is primarily due to this being a new watercourse project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W91001 SIP, Phase II Corridor & SEWRPC Studies Planning Dec-99 Jan-01 $36,431 Prelim. Eng Mar-01 Dec-16 $2,714,557 Design Dec-99 Apr-00 $14,023 Total $2,765,011 Previously Approved Total $2,765,004 Increase/(Decrease) $7

Project Description The purpose of this project is to develop tools that will assist the District in removing structures from the one percent probability floodplain. The project scope includes completing digital floodplain maps that identify the one percent probability floodplain for major rivers within Milwaukee County. The maps will assist in identifying flooding problem areas within Milwaukee County and will help in setting funding priorities. The project is being completed by the SEWRPC staff. The change in Total Project Cost is de minimus. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost W96001 Fresh Coast Implementation Prelim. Eng Jan-16 Dec-20 $5,898,000

Total $5,898,000

Previously Approved Total $0 Increase/(Decrease) $5,898,000

Project Description The purpose of this project will deploy green infrastructure strategies that help to keep stormwater out of the combined and separate sewer systems, reducing the volume and frequency of combined and sanitary sewer overflows and basement backups during significant storms. The project will work in conjunction with key District initiatives, such as the Private Property Infiltration and Inflow (PP I/I) Reduction project, by providing evaluation and solutions to address stormwater before it infiltrates the District’s system. This project will also address the District’s 2035 Vision and Strategic Objectives approved by the Commission in January 2011.

The project scope includes several initiatives:

x Development of an overall, cost-effective green infrastructure program to supplement the District’s PP I/I program, infiltrate stormwater away from conveyance pipes, and keep stormwater out of the District’s sewerage system. Recommendations for solutions such as demonstration and projects or facilities improvements may be part of the program.

x An aggressive green infrastructure capture and infiltration program that establishes and meets targeted levels of performance.

x A partnering program to help fund low-cost/high-value green infrastructure project proposals that would capture and hold or infiltrate stormwater, create green jobs, result in energy efficiency, and provide other benefits to the District’s system.

The increase in Total Project Cost is due to this being a new project as it is the shift of implementation work from M03064. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost W97002 Greenseams Six-Year Forecast Total $7,200,000 Total $7,200,000 Project Description The purpose of this project is to purchase natural wetlands to retain stormwater to reduce the risk of future flooding problems. These properties provide multiple benefits to the local community in the form of open space, wildlife habitat, and passive recreation. This project will protect selected properties from development and will result in several benefits. First, avoiding development in floodplains and wetlands reduces the potential exposure of persons and property to harmful flood impacts. Second, conserving the natural functionality of wetlands and floodplains can help to ensure that the District’s capital investments in flood management do not become overtaken, ineffective, and obsolete. Third, conservation of floodplains, wetlands, and other environmentally sensitive areas results in effective protection of natural resources and wildlife. The project scope is to acquire land intended to assist in the prevention of future flooding issues in four of Milwaukee’s watersheds. This project includes the purchase of linkages or gaps within existing corridors protecting linear greenways along or tributary to jurisdictional waterways. The District either purchases or acquires conservation easements for privately owned parcels consisting of hydric soils in order to prevent the properties from being developed. The project, which includes the Menomonee River, Root River, Oak Creek, and Milwaukee River watersheds within the District’s planning area, will support activities to research, identify, acquire, maintain, preserve, and defend natural flood storage on lands within the District’s planning area. Specifically, it will encourage conservation and appropriate land-use decisions at critical locations of these watersheds. Since the program began, a total of 3,142 acres have been preserved. The District works collaboratively with non-profits, land trusts, governmental agencies, and municipal staff to identify properties in high priority areas, pool resources together, and to contact landowners. Some of these partners are able to own and become the steward of these properties, saving the District time and maintenance costs. The District continues its efforts to acquire grant funding to offset acquisition costs, primarily from the WDNR Stewardship Fund. The Greenseams® Program is a capital program and does not have an approved Total Project Cost. The 2016 expenditures are budgeted at $1.2 million; the six-year long-range financing plan includes $7.2 million. In terms of Operating Budget Impact, Greenseams® is a capital program which supports the District’s capital infrastructure by reducing the risk of flooding and keeping excess water out of the District’s conveyance system. Consequently, the District’s capital expenditures on the program generally do not result in changes to the current level of O&M expenditures (as the land is not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District’s System.

ID #: Name: Phase Start Finish Cost W97003 GMRCPP - Great Milwaukee Regional

Conservation Partnership Program Planning Jan-15 Mar-20 $2,106,272

Total $2,106,272 Previously Approved Total $2,032,233 Increase/(Decrease) $74,039

Project Description The purpose of this project is to work with farmland producers to place voluntary easements on undeveloped, privately owned properties and open space along streams, shorelines and wetlands in areas expected to have major growth in the next 20 years. This limited-time, innovative flood management program permanently protects key lands containing water-absorbing soils. With the Regional Conservation Partnership Program (RCPP), more acreage can permanently be placed in conservation status on privately owned lands. Through the 2014 US Department of Agriculture (USDA) Farm Bill’s Natural Resources Conservation Service (NRCS) and Regional Conservation Partnership Program (RCPP), federal funds match in-kind contributions. If competitively awarded, the RCPP Agricultural Conservation Easement Program (ACEP) allows for MMSD’s financial support to be matched in implemented conservation practices on agricultural easements along the Milwaukee River Watershed. The project scope is through ACEP, MMSD will obtain a property right with the permanent easement which requires land owners to permanently maintain conservation practices on private property to maintain land preservation value. Each easement is greater than $25,000 in value. These local partnerships through RCPP ACEP simultaneously support and protect MMSD's water quality and structural flood management projects. The increase in Total Project Cost is due to inflation, project staffing, or updated costs to reflect market conditions. No significant Operating Budget Impact is expected.

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Other Projects

Other Projects Other Projects is a budgetary grouping of projects that support overall District planning, management, and infrastructure assets and investments. These projects typically cannot be specifically identified with the Water Reclamation Facilities, Conveyance Facilities, or Watercourse Projects capital program groups. The 2016 Capital Budget includes $24.3 million for work on Other Projects. Please refer to project detail on the following pages for information on each project’s purpose, scope, cost estimate and impact on the O&M budget.

Facilities Management Facilities Management capital projects are those projects that are related to providing structural upgrades or replacements at District headquarters, Central Laboratory, or land assets.

ID #: Name: Phase Start Finish Cost M01011 NFPA Study Planning Jan-10 Dec-18 $710,193 Total

$710,196

Previously Approved Total $619,778 Increase/(Decrease) $90,415

Project Description The purpose of this project is to evaluate risk at District facilities related to NFPA 820 standard for fire and explosions. This project scope will conduct a National Fire Protection Association (NFPA) 820 audit of existing treatment and collection facilities and create a risk mitigation plan. This mitigation plan would include identifying costs and benefits associated with compliance. This facilities audit will evaluate the physical characteristics of District assets and management practices. It will also include an assessment of fire and explosion risk. Additional scope is added to provide engineering support for the following: interpretation, clarifications, meeting preparation and coordination between District, Veolia and future capital improvement design consultants for projects that have NFPA 820 related issues. The increase in Total Project Cost is due to increased staff time as a result of the extended project duration. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M01012 Milw River Flushing Station

Building Rehab Design Jan-11 Nov-15 $234,847

Construction Aug-15 Jun-16 $488,994 Post-Constr. Jun-16 Oct-16 $7,293 Total $731,134 Previously Approved Total $815,003 Increase/(Decrease) ($83,869)

Project Description The purpose of this project is to ensure the Milwaukee River Flushing Station can operate as designed by restoring the building’s structural integrity. The project scope will evaluate the Milwaukee River Flushing Station building’s settlement issues. From this evaluation, the project will evaluate alternatives and construct the preferred solution. After a geotechnical exploration, the preferred solution is to use a chemical grout to support the foundation. The Milwaukee River Flushing Station is located at the intersection of Lincoln Memorial Drive and Lafayette Hill Road and is used to increase the level of dissolved oxygen (DO) in the Milwaukee River when the level of DO in the river falls below three parts per million. The decrease in Total Project Cost is due to the construction bids being lower then estimated. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost M01019 Safe Atmosphere Monitoring Planning Jan-13 Oct-16 $231,093 Prelim. Eng Dec-16 Oct-17 $288,018 Construction Feb-18 Sep-18 $761,673 Total $1,280,784 Previously Approved Total $1,256,602 Increase/(Decrease) $24,182

Project Description The purpose of this project is to provide a comprehensive evaluation of actual field hazards and conditions so that future improvements can be prioritized in the most important areas with highest potential for fire and explosion risk. This project scope will install monitoring equipment that will be used to evaluate actual field hazards and conditions that will allow the District to make recommendations for facilities improvements to mitigate or prevent the risk of potential fire or explosions. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M01023 Wharf Wall Improvements Prelimin. Eng Jan-14 Jun-14 $328,231 Design Jun-14 Mar-15 $299,863 Construction May-15 Jun-16 $990,879 Post-Constr. Aug-16 Sep-19 $13,462 Total $1,632,435 Previously Approved Total $1,262,484 Increase/(Decrease) $369,951

Project Description The purpose of this project is to stabilize the wharf wall on the southwest corner of District Headquarters and to extend its useful life. This project scope has taken emergency measures to stabilize the wharf wall and identified the cause of failure. The project will now perform an alternative analysis, recommend a final wharf wall configuration, develop the design, and construct the solution. The increase in Total Project Cost is due to bids received for the construction work being higher then estimated. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost M01026 HQ & Lab Heat & Power Generation

System Prelim. Eng Jan-16 Aug-17 $336,370

Design Dec-17 Nov-18 $440,112 Construction Mar-19 May-20 $2,374,385 Post-Constr. Jun-20 Oct-20 $17,504 Total $3,168,371 Previously Approved Total $0 Increase/(Decrease) $3,168,371

Project Description The purpose of the project is for the District to further extend its leadership position in reducing its carbon footprint while reducing electrical and HVAC operating costs. The project scope is to implement a Combined Heat and Power Generation System at the MMSD Headquarters and Laboratory buildings that will self-generate electrical power while utilizing the waste heat recovered for heating, and possibly cooling, and producing essentially near-zero greenhouse gas emissions. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M01027 2nd Floor Reconfiguration Construction Sep-15 Dec-16 $65,000 Total $65,000 Previously Approved Total $0 Increase/(Decrease) $65,000

Project Description The purpose of the project is to provide office space needed to address reorganizations proposed in the 2016 budget. Specifically, this would reconfigure existing offices and storage spaces to increase office space, and move the conference room and the copy room. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M01028 Laboratory Fume Hood Removal Construction Jan-16 Dec-16 $88,500 Total $88,500 Previously Approved Total $0 Increase/(Decrease) $88,500

Project Description The purpose of the project is to remove the current fume hoods as they pose a significant threat. The project will remove an out-of-commission percholoric acid digestion hood and three specialty fume hoods. The project will also reconfigure the room and update the flooring and walls. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

Facilities Planning Facilities Planning is an ongoing process addressing all District facilities. The process includes: 1) evaluation of projects that review data reflective of system conditions before and after major system upgrades to validate the performance expectations of previous facility improvements, 2) data collection to provide a consistent time series of data adequate for evaluation of system performance, and 3) modeling and evaluation of the real time operation of the systems constructed under a Facilities Plan. Ultimately, assumptions made under a facilities plan must be evaluated on an on-going basis to determine if facilities plan identified projects should be built as planned.

The District’s capital improvement program is primarily driven by a facilities plan that is formalized and published on about a ten-year cycle. Once the plan is formally published, staff routinely analyze and evaluate the plan to ensure that the recommendations and projects are current. The development of the plan requires ongoing data collection and analysis as well as staff resources. The projects associated with this effort address plan development, data gathering, and data analysis issues. Activities funded in the 2016 Capital Budget will identify and plan future improvements to District facilities.

ID #: Name: Phase Start Finish Cost M03016 Post 2020 FP Implementation Evaluation &

Planning Planning Jan-05 Aug-20 $34,960,582

Total $34,960,582 Previously Approved Total $34,958,892 Increase/(Decrease) $1,690

Project Description The purpose of this project is to evaluate 2020 Facilities Plan (FP) recommendations as implementation proceeds. The FP identifies system capital improvements necessary for wastewater, conveyance, treatment, and watercourse management needs through 2020. Since projects recommended in the FP are expected to take several years to implement, under this project, the initial FP recommendations will be evaluated as implementation proceeds to determine whether plan updates or modifications are needed. The project scope includes, but is not limited to:

x Continuous collection, investigation, and evaluation of wastewater flow data (including infiltration and inflow), water quality data, population, land use, and development patterns;

x System performance tracking to measure the effectiveness of the FP recommendations in terms of system operational benefits, infiltration and inflow reduction, return on investment, cost, and water quality improvement. Performance tracking provides data that will ultimately drive decisions regarding timing and sizing of FP projects yet to be undertaken;

x Continuous modeling, using the above mentioned data, in order to further refine sizing of projects identified in the FP;

x Public involvement efforts related to population and land use project adjustments (with advisory committees) as well as general public awareness-raising activities when recommended projects will change (schedule, scope, or budget) as a result of new data or the status of specific sets of capital projects;

x Efforts related to rulemaking, policy changes, ordinance provisions and the like to allow or facilitate FP recommendations;

x Establishing partnerships that result in capital cost avoidance otherwise recommended in the FP; x Updating the FP when data indicate a need; x Monitoring of changes in state or federal regulations that may impact FP projects, and further analysis of the

impact of these regulations on the recommended FP projects; x Amending the FP; x Investigating the status of all MIS connections.

The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03028 Corridor Study, Phase 4 Planning Mar-06 Sep-16 $4,987,447 Total $4,987,447 Previously Approved Total $5,126,131 Increase/(Decrease) ($138,684)

Project Description The purpose of this project is to provide information to establish performance measures to evaluate and track the effectiveness of recommended 2020 Facilities Planning alternatives to improve water quality. The project scope of the Corridor Study is a cooperative effort between the District and the United States Geological Survey (USGS). Under the direction of the District, the USGS is assembling, collecting, and evaluating hydrologic, hydraulic, geographic, physical, biological, and chemical data for major streams and their adjacent corridors within the District’s planning area. The scope consists of comprehensive water quality data collection in the District’s service area with an emphasis on intensive biological sampling at multiple locations for fish, aquatic macro-invertebrates and periphyton in conjunction with the monitoring of hydrologic events to determine habitat responses to runoff “flashiness”; quantify contributions of human wastewater and related virus presence within the Kinnickinnic and Menomonee River Watersheds; evaluate the impacts of road salt on the watersheds in the greater Milwaukee metropolitan region; and add the new information to and upgrade the comprehensive water quality database. The decrease in Total Project Cost is due to the deletion of assessments of the impacts of the potential Waukesha water diversion on the receiving waters under MMSD watercourse jurisdiction. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03029 Water Quality Studies Planning Apr-06 Dec-18 $6,031,839 Total $6,031,839 Previously Approved Total $5,632,271 Increase/(Decrease) $399,568

Project Description The purpose of this project is to look at a variety of research projects that may need additional data collection or evaluation for improving water quality in the Greater Milwaukee Watersheds and are being used as a resource for the continued evaluation and implementation of the District’s 2020 Facilities Plan. These studies are designed to answer specific questions or needs of the District as it pertains to planning requirements. The project scope will take the information generated in these studies and disseminate it to those water resources managers and engineers who are responsible for the design, construction, and operation of various collection systems or have water resource management responsibilities. The increase in Total Project Cost is due to the expanded scope to address recommendations of the 2020 Facilities Plan. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03037 2050 Facilities Planning - Ultimate Build-out Planning Oct-13 Dec-17 $8,736,025 Total $8,736,025 Previously Approved Total $8,736,025 Increase/(Decrease) $0

Project Description The purpose of this project is to ensure the District facilities will address future needs in an operationally sustainable and cost effective manner. The project scope will consider the District’s facilities, policies, operations and programs to meet the Clean Water Act, permit requirements, 2035 Vision goals, and ultimate build out of the District’s service area. This effort will utilize an asset management format and will result in a facilities plan consisting of five asset management plans for treatment, conveyance, watercourse, administrative facilities and green infrastructure. This effort is required as a result of the District’s Wisconsin Pollutant Discharge Elimination System (WPDES) permit, issued in 2013. There is no change in Total Project Cost. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost M03042 Real Time WQ Monitoring Stations Planning Jul-08 Mar-16 $1,890,396 Total $1,890,396 Previously Approved Total $1,891,557 Increase/(Decrease) ($1,161)

Project Description The purpose of this project is to estimate real-time concentrations and loads of selected constituents in stream flow. This project provides information to MMSD’s H2O Info geospatial-based public website for interactive reporting and analysis of real-time factors that affect water quality. The project scope provides real-time information to MMSD’s watershed planning efforts and will help document the results of the implementation of the Menomonee River Watershed Restoration Plan. The project uses regression models to estimate real-time concentrations and describe the process. The change in Total Project Cost is de minimus. No significant Operating Budget Impact is expected.

Since the District began partnering with the municipalities to reduce infiltration and inflow from private property in 2010, the District has:

> Completed 84 Workplans > Partnered with 25 Municipalities > Assisted with Planning and Policy

Development in 14 municipalities > Completed construction on 6,100

properties > Completed investigation on 9,200

properties > Committed $20.8 million in Total Funds

ID #: Name: Phase Start Finish Cost M03043 Greenhouse Gas Planning Study Planning Jan-09 Jan-20 $1,610,319 Total $1,610,319 Previously Approved Total $1,608,677 Increase/(Decrease) $1,642

Project Description The purpose of this project is to continue the planning effort established under the Greenhouse Gas Emissions Inventory Project in order to align with future federal requirements to mitigate the effects of climate change. This project is part of an overall effort to achieve sustainable operations at District facilities consistent with current District policy. This project is directly in line with MMSD’s environmental sustainability policy which requires that the District focus on “…the investment of resources to ensure capacity and infrastructure related to pollution control.” The project scope is to provide data needed to evaluate future facilities improvements as it relates to greenhouse gas emissions. The project will undertake a number of follow-up activities associated with the Greenhouse Gas Emissions Inventory. That work will include independently verifying the 2009 inventory, establishing protocols to record and track current and future District greenhouse gas data (including data reporting and data management functions), and setting future emission reduction targets that will provide input to future facilities improvements. It could also include an analysis of how Greenseams® properties might be used to sequester carbon as part of a larger program. The project could include an analysis of the impact on District facilities and feasibility of participating in greenhouse gas markets in the future, depending on potential future federal legislation. The change in Total Project Cost is de minimus. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost M03044 I/I Reduction on Private Property Phase II Six-Year Forecast Total $30,000,000 Total $30,000,000

Project Description The purpose of this project is to provide a funding mechanism for municipalities to complete project work intended to reduce the risk of basement backups, sanitary sewer overflows, and combined sewer overflows. This project scope provides funding to municipalities for planning, design, investigation and construction of projects intended to reduce infiltration and inflow (I/I) on private property. Expenses for actual work to reduce I/I implemented by the municipalities that is consistent and compliant with the approved District Policy and Guidelines will be reimbursed through this project to the limits of the municipality allocation according to the Policy. Annual reimbursement for the Private Property I/I (PP I/I) program will be based on the preceding year’s equalized value of each municipality. This is the means by which the tax levy is collected. Using this equation ensures that each municipality will get their proportionate share. The PP I/I Program is a capital program and does not have an approved Total Project Cost. The 2016 expenditures are budgeted at $5 million; the six-year long-range financing plan includes $30 million. With regards to the Operating Budget Impact, I/I Reduction on Private Property Phase II is a capital program which supports the District’s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. As a result, the District’s capital expenditures on the program would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District’s System.

ID #: Name: Phase Start Finish Cost M03048 Regional Green Roof Initiative Planning Jan-10 Dec-17 $5,079,500 Total $5,079,500 Previously Approved Total $5,079,500 Increase/(Decrease) $0

Project Description The purpose of this project is to implement a District-wide Green Roof Program. Green roofs provide a significant reduction in the rate and volume of runoff of rainwater and snow melt, reducing the risk of flooding and sewer overflows. An average extensive green roof is capable of capturing 60 percent of the annual precipitation that falls on it. This technology provides the additional benefits of a significant reduction in energy usage for heating and cooling as well as extension of the lifespan of a conventional roof by as much as double and more. The Regional Green Roof Initiative project scope will be administered through an incentive program providing base funding of $5 per square foot. The demonstration projects funded by this project in 2010-11 have significantly raised awareness and acceptance of green roofs as an effective stormwater management tool. In 2013, the District captured available quantitative data and regional feasibility data on implementation successes and barriers so that future programs can be based on lessons learned from the demonstration projects. The program is based on successful programs in Washington, D.C. and Portland, Oregon. The budgeted funding will specifically provide $5 per square foot of base funding for green roofs in the MMSD service area. The change in Total Project Cost is de minimus. In 2016, $50,000 is allocated in the Operations and Maintenance Budget for Green Roof projects as the Operating Budget Impact.

ID #: Name: Phase Start Finish Cost M03051 Alternative Energy Planning Planning Jun-10 Dec-16 $980,460 Total $980,460 Previously Approved Total $854,660 Increase/(Decrease) $125,800

Project Description The purpose of this project is to evaluate and implement alternative and renewable sources of energy for operations at District facilities, consistent with the District’s 2035 Vision in regard to pursuing a higher percentage use of renewable sources of energy. The District has relied on alternative or renewable energy in the form of anaerobic digestion at South Shore and landfill gas and solar power at Jones Island, and this project would further enhance the District’s energy security, gradually moving toward an alternative energy future in light of predicted shortfalls in nonrenewable energy production. The project scope includes the evaluation of energy sources including but not limited to wind, solar, and sewer thermal projects. Based on the evaluation, recommendations may be made for related facilities or facilities improvements. The increase in Total Project Cost is due to updated cost estimates to manage and install solar panels at District pump stations, which may be partially grant-funded. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03062 Integrated Regional Stormwater Mgt Plan Planning Jan-11 Sep-16 $2,254,729 Total $2,254,729 Previously Approved Total $2,254,731 Increase/(Decrease) ($2)

Project Description The purpose of this project is to evaluate and make recommendations for an integrated regional approach to stormwater management. Since sewer sheds and sub-watersheds do not follow municipal boundaries, a regional approach to planning is necessary to begin to manage stormwater issues during large storm events. Currently, stormwater drainage in the region is mostly managed by municipalities, with stormwater pipe systems or roadway ditches generally designed for five- to 25-year storm events. The District has historically provided flood risk reduction only for structures in the 100 year floodplains along the rivers. The July 2010 storms showed that runoff from storms that exceed pipe system capacities usually flow down streets that may not have adequate slope or outlet relief to the rivers. When this happens, stormwater runoff can create surface flooding of homes and businesses and exacerbate inflow and infiltration into sanitary sewers. The project scope is to develop a plan to improve stormwater management within the District’s region by integrating stormwater runoff issues with flood management to improve both drainage and water quality. The plan will identify and inventory noted drainage problem areas that are situated near potential floodplain relief locations, evaluate alternatives that provide both a water quality improvement and a water quantity drainage solution, and then suggest a recommended plan with costs. Solutions may include but are not limited to: home solutions, such as implementing green infrastructure; local storage solutions such as roadway storage, new or more underground conveyance , storage and neighborhood storage with water quality benefits; and relief solutions such as gravity outlets to floodplains or pumping. Solutions may also include an overall framework to allow or require stormwater management through coordination of permits, changes to zoning, and various point -of-sale approaches. The decrease in Total Project Cost is de minimus. No significant Operating Budget Impact is expected.

ID #: Name: Phase Start Finish Cost M03063 Private Lateral Inspection and Engineering Planning Apr-10 Jun-21 $8,003,714 Total $8,003,714 Previously Approved Total $8,003,712 Increase/(Decrease) $2

Project Description The purpose of this project is to work in conjunction with project M03044 to provide a funding mechanism for the inspection, engineering, and public information and education outreach associated with Private Property Infiltration and Inflow (I/I) reduction. This project scope provides for District work and associated costs for research of existing programs and policy related to publicly funded Private Property I/I (PP I/I) programs and creation of policy and guideline documents for use in District administration and management of the District PP I/I program. The project also provides for District staff and contracted consultant services for guidance to the member municipalities to create their individual programs. The project will provide for District staff and consultant services in administrative, management, District-level public involvement, and continuing research for the municipal PP I/I activities funded through M03044. The increase in Total Project Cost is de minimus. No Significant Operating Budget Impact is expected. The District’s capital expenditures on the program would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District’s system.

Effective stormwater practices are

integrated into the urban landscape to

improve their function and performance.

ID #: Name: Phase Start Finish Cost M03064 Fresh Coast Green Solutions Planning Jan-12 Nov-20 $6,840,873 Total $6,840,873 Previously Approved Total $11,645,589 Increase/(Decrease) ($4,804,716)

Project Description The purpose of this project is to deploy green infrastructure strategies that help to keep stormwater out of the combined and separate sewer systems, reducing the volume and frequency of combined and sanitary sewer overflows and basement backups during significant storms. The project will work in conjunction with key District initiatives, such as the Private Property Infiltration and Inflow (PP I/I) Reductio n project, by providing evaluation and solutions to address stormwater before it infiltrates the District’s system. This project will also address the District’s 2035 Vision and Strategic Objectives approved by the Commission in January 2011.

The project scope includes several initiatives:

x Development of an overall, cost-effective green infrastructure program to supplement the District ’s PP I/I program, infiltrate stormwater away from conveyance pipes, and keep stormwater out of the District’s sewerage system. Recommendations for solutions such as demonstration and projects or facilities improvements may be part of the program.

x An aggressive green infrastructure capture and infiltration program that establishes and meets targeted levels of performance.

x A partnering program to help fund low-cost/high-value green infrastructure project proposals that would capture and hold or infiltrate stormwater, create green jobs, result in energy efficiency, and provide other benefits to the District’s system.

The decrease in Total Project Cost is due to the shift of implementation work to W96001. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03072 Energy Plan Planning Jan-13 Jul-17 $599,643 Total $599,642 Previously Approved Total $499,642 Increase/(Decrease) $100,001

Project Description This project will undertake planning for energy conservation projects that will aid progress toward ac hieving the 2035 Vision goals. The project scope will also track energy costs associated with these. The increase in Total Project Cost is due to increased project scope by the addition of a conservation project. The Operating Budget Impact is not known at this time.

ID #: Name:

Cost M03076 Green Solutions for Separate Infrastructure

& Sewers Six-Year Forecast Total $10,684,440

Total $10,684,440 Project Description The purpose of this project is to help the District meet its permit requirement to capture 1 million gallons of new stormwater via green infrastructure by incentivizing municipalities within the District to implement green infrastructure. The project scope is to provide a funding mechanism to municipalities within the District service area that implement green infrastructure techniques. For those municipalities that chose not to use the funding on municipal property, the funds will become available to private property, non-profit, and non-municipal public property owners. The funding will annually be allocated to municipalities based on equalized value. The project is also consistent with the District’s 2035 Vision and Regional Green Infrastructure Plan. Green Solutions is a capital program which supports the District’s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. Green Solutions is a capital program and does not have a Total Project Cost. The 2016 budget includes $2,100,000 and the six-year forecast includes $10,684,440. As a result, the District’s capital expenditures on the program would generally not result in an Operating Budget Impact (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long -term cost-effective operation of the District’s System.

ID #: Name: Phase Start Finish Cost M03077 ZIC BMP Planning Jan-13 Jul-13 $2,091 Prelimin. Eng Aug-13 Nov-14 $92,966 Design Jun-16 Oct-17 $418,686 Construction Jan-18 Mar-19 $2,433,945 Post-Constr. Apr-19 Sep-20 $52,281 Total $2,999,969 Previously Approved Total $2,999,970 Increase/(Decrease) ($1)

Project Description The purpose of the project is to protect the quality of the region’s water resources. The project scope is to design and construct stormwater management or streambank stabilization solutions for the increased amount of impervious pavement and the subsequent increase in stormwater runoff created with the reconstruction of the Zoo Interchange. The Wisconsin Department of Transportation (WisDOT) has agreed to provide funding for the project. Without stormwater management techniques, the additional run-off would enter area waterways without treatment or volume control. This would degrade the water quality in the streams and increase the erosion along the streambanks during wet weather events. The change in Total Project Cost is de minimis. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03088 Corridor Study, Phase 5 Planning Jan-16 Mar-22 $2,238,846 Total $2,238,846 Previously Approved Total $0 Increase/(Decrease) $2,238,846

Project Description The purpose of this project is to provide valuable information and baseline data from the Milwaukee Estuary that is now under MMSD watercourse jurisdiction. The data will provide inputs into the 2050 Facilities Plan as well. The project scope is a cooperative water quality research effort between MMSD and the United States Geological Survey (USGS) that will continue to expand research from previous phases and respond to new areas of interest as identified by regulation, facilities planning, and Executive Director requests. The proposed Phase 5 will focus on ecology, restoration evaluation, micro plastics, trace organics, optical properties of water, pathogens, water quality trends, alternative deicers, polyromantic hydrocarbons (PAHs), streamflow gauging, and other needs identified as the study progresses. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M03089 Bacteria BMP Design Dec-15 May-16 $132,378 Construction Sep-16 Mar-17 $361,927 Post-Constr. Sep-17 Dec-19 $55,695 Total $550,000 Previously Approved Total $0 Increase/(Decrease) $550,000

Project Description The purpose of this project is to meet the requirements of the WDNR permit requirement that tests infiltration practices and includes an evaluation on the best management practices (BMP) impact toward reducing bacteria loadings. The project scope consists of planning, design, construction and post-construction performance monitoring of a Bacteria BMP at an outfall on the east bank of the South Branch of Underwood Creek approximately 200 feet north of Interstate 91. Extensive post construction water quality sampling will be performed to monitor the effectiveness. The change in Total Project Cost is because this is a new project. The Operating Budget Impact is not known at this time.

Workforce & Business Development Resource Program

In an effort to address the shortage of qualified, non-traditional workers and firms in the engineering and construction industries, the District funds and manages the Workforce & Business Development Resource program.

ID #: Name:

Cost M04001 Workforce Development Training

Program Six Year Forecast Total $3,000,000

Total $3,000,000 Project Description The four key goals of the Workforce & Business Development Resource program purpose are:

1. Train and retain more minorities and women as apprentices in the construction trades. 2. Recruit, identify, and place talented college students from the region that are studying construction

management, engineering, or science, with internships with District contractors and consultants. 3. Increase the capacity of small, minority and women-owned businesses to compete and succeed as primes and

subcontractors on the District’s construction and engineering projects. 4. Build the managerial capacity of non-traditional participants employed by District engineering consultants

and construction contractors.

The Workforce & Business Development Resource program consists of four program components: pre-apprenticeship training and placement, consulting and construction management training, business development training, and the Regional Internships in Science and Engineering (RISE) program for college students.

The District will continue to focus on three key strategies: integration, collaboration, and evaluation. The scope will continue to integrate this program with the long-term needs of the District’s six-year Capital Improvement Program. The District needs to build on the growing collaborations with other public and private funders to strengthen the programs and leverage scarce resources. Additionally, the District needs to continue to evaluate and measure its short and long-term success at ensuring that the workers, contractors, and consultants that work on its capital projects reflect the diversity of the region we serve.

The Workforce & Business Development Resource program does not have an approved Total Project Cost. The 2016 expenditures are budgeted at $500,000; the six-year long-range financing plan includes $3 million. The Workforce and Business Development Resource Program is a capital program which supports the District’s capital improvement program by training and developing the local workforce so that they are better able to compete for and sucecedd as prime and sub-contractors on the District’s construction and engineering projects. As a result, the District’s capital expenditures on the program would generally not result in an Operating Budget Impact (as the resulting improvements are not operated or maintained by the District).

Information Technology Software Systems ID #: Name: Phase Start Finish Cost M06011 Information Technology Software Systems Planning Jan-16 Dec-21 $913,000 Total $913,000 Previously Approved Total $843,000 Increase/(Decrease) $70,000

Project Description The purpose of this project is to fund the acquisition of new software systems. This project includes systems as identified through the IT Short/Long Range Plan that was developed in 2013. The IT Short/Long Range Plan will be evaluated annually and updated as necessary based on changing conditions, changing needs, and the rapid pace of technology change. The increase in Total Project Cost is due to the inclusion of an accounting software module. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M06012 Network Equipment Replacement Planning Jan-15 Dec-16 $620,000 Total $620,000 Previously Approved Total $520,000 Increase/(Decrease) $100,000

Project Description The purpose of this project is to fund the acquisition of new network equipment. This project includes systems as identified through the IT Short/Long Range Plan that was developed as a 2013. The IT Short/Long Range Plan will be evaluated annually and updated as necessary based on changing conditions, changing needs, and the rapid pace of technology change. The increase in Total Project Cost is due to the inclusion of an upgrade to the uninterruptable power supplies for the computer room in the Laboratory building. There is no Operating Budget Impact as ongoing maintenance costs will remain the same.

ID #: Name: Phase Start Finish Cost M06013 Capital Program Management System Planning Jan-15 Dec-16 $737,000 Total $737,000 Previously Approved Total $737,000 Increase/(Decrease) $0

Project Description The purpose of the project is to preserve and expand efficiencies and effectiveness in managing the District’s ongoing Capital Improvement Program (CIP). The project scope is to upgrade to the latest Oracle/Primavera software in managing CIP project costs, schedules, contracts, and construction site activities or implement other software systems that can provide requisite CIP management functionality. The District first installed Primavera tools in 2000. In the more than 15 years of using the software, staff have been able to use these tools to improve the efficiency and effectiveness in managing projects and project activities. The three primary scope items associated with this project are to replace the cost and schedule management tool, replace the contract management tool, and add an analytics tool, thereby increasing the possibility for efficiency gains. Improvements to existing software functionality are intended to improve the CIP visibility, decision-making, and cost and schedule performance. There is no change in Total Project Cost. The Operating Budget Impact is not known at this time.

ID #: Name: Phase Start Finish Cost M06014 Water Reclamation Facilities Data

Management System Planning Jan-15 Dec-16 $729,352

Total $729,352 Previously Approved Total $750,000 Increase/(Decrease) ($20,648)

Project Description The purpose of the project is to improve access to asset information, spatial location, and decision-making associated with Water Reclamation Facilities (WRF) data. The project scope is to create a scalable and maintainable solution for sharing WRF spatial data that integrate with existing operational and maintenance systems. The project consists of four phases. Phase I was an internal effort to develop GIS layers for underground utilities and is now complete. Phase II involved data expansion and improvements for underground utilities and development of a geographic based site plan for both WRFs. Phase III involves hiring a consultant to assist the District in determining the best tool to meet its objectives and writing a Request for Proposals (RFP) to hire a system implementation partner. Phase IV involves implementation of the system and integration with other existing systems. The decrease in Total Project Cost is de minimus. The Operating Budget Impact is not known at this time.

Financial Planning Financial Planning seeks to reduce the cost of borrowing to the District.

ID #: Name:

Cost M07001 Financial Planning Six Year Forecast Total $2,485,210 Total $2,485,210

Project Description The purpose of this project is to reduce the cost of borrowing through:

x Favorable bond ratings, x An appropriate mix of borrowing and cash financing, with at least 25 percent cash financing of project

expenditures over the six-year plan, x Below-market rate loans from the state Clean Water Fund Program, and x Capture of grant funds.

The project scope aims at specialized financial planning services to support the District’s objective of limiting the proportion of the regional economy needed to finance capital projects.

The 2016 Capital Budget will fund financial planning efforts performed by internal staff and outside consultants as the District prepares for a competitive bond sale, grant and loan applications and reimbursement requests, and lobbies for favorable funding legislation. The 2016 Capital Budget includes the six-year long-range financing plan to the year 2021, reflecting implementation of projects included in the District’s 2020 Facilities Plan.

Financial planning provides funding for internal staff time and outside professional services necessary to obtain financing for capital projects, including:

x Bond Counsel x Escrow Trustee x Lobbying Activities for Grant Legislation & Award Arbitrage Rebate Calculation x Financial Advisor x Rating Agencies x Clean Water Fund Program Application & Closeout x Bond Registrar x Grant Applications

The financial planning account does not have an approved Total Project Cost because it is an ongoing capital project support program. The 2016 expenditures are budgeted at $453,242; the six-year long-range financing plan includes $2485,210. There is no significant Operating Budget Impact.

Risk Management Program

ID #: Name: Cost M09001 Risk Management Program Six Year Forecast Total $7,796,909 Total $7,796,909

Project Description The purpose of the program seeks to reduce the risk of losses associated with the District’s Risk Management Program. The program scope of the District’s Risk Management Program includes the following elements:

x Owner Controlled Insurance Program. The insurance program expires at the end of March 2015. See comments below for further discussion.

x Contractual requirements with consultants and contractors to ensure specified amounts and types of insurance coverage for each design and construction contract. The District has contracted with its insurance broker to monitor compliance with contract insurance requirements.

x The purchase of insurance by the District to address the potential for losses in excess of limits required from contractors and consultants, including professional liability insurance and environmental liability insurance.

x Construction safety program, including construction contractor requirements and oversight by District staff and contracted safety professionals. The staffing level of contracted safety professionals is reduced from two to one, effective October 1, 2014.

x A District Consultant Activity Review Committee to identify, analyze, and determine costs of incidences of deficient work products prepared by consultants.

In 1999, the District implemented an Owner Controlled Insurance Program (OCIP) (capital project M09001) to manage the workers compensation, general liability, and builder’s risk loss exposures associated with its capital improvement program. The premise behind an OCIP is that the District, as owner, can purchase more comprehensive insurance coverage at lower cost than contractors purchasing individual policies. The success of an OCIP requires implementation of a well-planned loss control program in order to identify risk and control and reduce losses. The program affords the availability of drawing on professional safety personnel from the broker/administrator, contractor, and the insurance carrier and the District staff to assist in attaining their common goals. Oversight of the OCIP is provided by the Wisconsin Department of Workforce Development. From July 2009 through June 2014 the District has realized estimated net savings of $4.2 million in construction costs compared to contractors purchasing their own insurance.

Because the level of construction expenditures from 2014 through 2017 are significantly lower than in prior years, the District has decided that construction contracts awarded in 2014 would not be included in the OCIP. For those active construction contracts included in the OCIP, OCIP insurance coverage had been extended from July 2014 through March 2015. After March 31, 2015, OCIP insurance coverage expired and each contractor was responsible to demonstrate insurance coverage as specified by contract.

The Risk Management Program does not have an approved Total Project Cost because it is an ongoing construction support program. The 2016 expenditures are budgeted at $1,166,735; the six-year long-range financing plan includes $7,796,909. Costs of the Risk Management Program are allocated to capital projects on the basis of construction contract expenditures. There is no significant Operating Budget Impact.

ID #: Name: Cost M99001 Allowance for Cost & Schedule

Changes Six Year Forecast Total $9,952,194

Total $9,952,194 Project Description The purpose of this account is to provide a source of funds to address unanticipated contract changes and changes in project cash flows. By planning for the payment of these expenditures, this account supports the District’s goal of maintaining a stable tax rate over the planning horizon. Commission policy requires the Allowance for Cost and Schedule Changes to be funded at no less than two percent and no greater than five percent of capital expenditures. The Allowance for Cost and Schedule Changes in the six-year plan is budgeted at two percent per year. Allowance accounts do not have an approved Total Project Cost. The long-range financing plan includes $9.9 million with $1,452,491 budgeted for 2016. There is no significant Operating Budget Impact.

ID #: Name: Phase Start Finish Cost M99002 Operator Contribution to CIP Six Year Forecast Total $400,000 Total $400,000

Project Description The operating contract with Veolia Water Milwaukee (VWM) includes provisions for VWM to participate in current and planned District capital projects. VWM reviews the annual capital budget, reviews and creates requests for new projects, attends meetings, and participates in the implementation of capital projects. Operator contribution to CIP accounts do not have an approved Total Project Cost. The long-range financing plan includes $300,000 with $100,000 budgeted for 2016. There is no significant Operating Budget Impact.

Debt Service

The Wisconsin State Statutes allow the District to finance capital improvements through the issuance of debt instruments,

including: general obligation bonds and notes; bond anticipation notes; and revenue bonds and notes. Issuance of bonds and

notes require a vote of at least two-thirds of all Commissioners except in the case of emergency borrowing which requires a

vote of three-fourths of all Commissioners.

The District’s debt policy seeks to ensure the maintenance of sound debt position and the protection of the District’s credit

quality. The District’s debt policy provides an appropriate balance between establishing limits on the debt program and

providing sufficient flexibility to respond to unforeseen circumstances and new opportunities. Key limits in the debt policy

include:

x The District’s intent to keep outstanding general obligation debt to no more than 2.5 percent of its equalized

property value of member communities.

9 The 2.5 percent limit is half of the amount allowed by Wisconsin law.

x The District’s intent to cash finance at least 25 percent of project expenditures over the six-year financing plan.

x No more than 15 percent of its outstanding general obligation bonds in variable rate form.

x Advance refunding for economic savings to be undertaken only when net present value savings of at least 2 percent

of the refunded debt can be achieved.

In acknowledgement of its financial management and planning strength, the District continues to receive strong credit ratings.

In March 2015, Standard & Poor’s Ratings Services affirmed the District’s AA+ credit rating with a stable outlook. The rating report cited the District’s large and diversified property tax base; sound fiscal operations with strong liquidity and strong

financial management; and moderate overall debt burden with rapid amortization in affirming the AA+ rating which has

remained unchanged since 1997. Also, in March 2015, Moody’s Investors Service affirmed its credit rating Aa1. Moody’s report noted that the District’s Aa1 rating reflects “sound financial operations that benefit from strong financial flexibility and

adequate liquidity levels.” Since July 2007 Fitch Ratings has rated the District as a AAA credit, most recently affirming the AAA

rating in March 2015.

As of August 31, 2015, the District has $982.8 million of general obligation debt outstanding.

Principal Amount ($0) True Interest Cost (%)

District Bonds $333.9 2.939 - 4.447%

Clean Water Fund Program Loans

$648.9 2.200 - 4.953%

Total $982.8

The District is subject to a statutory debt limit in the Wisconsin Statutes Section 67.03.

2015 Equalized Valuation (Estimate)

$55,010,987,700

100.00%

Statutory Debt Limit Rate 5.00%

Statutory Debt Limit $2,750,549,385

General Obligation Debt Outstanding at August 31, 2014 $982,770,006 1.79%

Legal Debt Margin $1,767,779,379

The debt financing strategy focuses on operating the District in a fiscally prudent manner, contributing to the stability

and growth of the region’s tax base and customer base, by maintaining or improving the District’s bond rating.

Total debt service payments in 2016 are budgeted at $126.7 million. Of this amount, $26.3 million is from debt service

funds and $4.4 million is from available funds on hand. The remaining $96.0 million is funded by tax levy.

In 2016, the District does not plan to issue general obligation debt but plans to receive an additional $23.6 million in

low-interest loan funds from the State of Wisconsin Clean Water Fund Program.

Debt Service Schedules


2015 2016 2017 2018 2019 2020 2021

2016-21

Six Year

Estimate Budget Forecast Forecast Forecast Forecast Forecast Total

X01001 District Bonds $46,301 $48,467 $49,266 $34,685 $38,065 $41,088 $44,705 $256,277

X02001 CWFP Loans 72,698 73,828 72,758 73,187 74,792 76,373 76,007 $446,945

X02002 WEDC Loan 777 2,706 0 0 0 0 0 $2,706

X03003 Intergovt. Loan 1,694 1,693 4,166 1,693 1,692 1,692 1,691 $12,627

Total Debt Service $121,470 $126,694 $126,190 $109,565 $114,550 $119,152 $122,404 $718,554

NOTE: Totals may not add due to rounding.

$114,9

98

$121,4

70

$126,6

94

$126,1

90

$109,5

65

$114,5

50

$119,1

52

$122,4

04

$68,0

69

$88,3

45

$89,5

71

$91,5

22

$83,1

72

$99,9

23

$111,7

09

$120,2

72

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015 2016 2017 2018 2019 2020 2021


To

tal Exp

en

dit

ure

s (d

ollars

in

th

ou

san

ds)

Debt Service Payments Compared to Total Capital

Expenditures in the Six-Year Forecast

Total Debt Service Total Capital Project Expenditures

X01001 District Bonds Project Purpose

District bonds supplement other revenue sources to fund the Capital Improvement Program. This project represents the

budget year’s repayment obligation of this funding. Timely principal and interest payments are critical in maintaining the

District’s bond rating.

Project Scope

This project funds payments to holders of District bonds for principal and interest coming due in 2016. Six District-issued

general obligation bond series are currently outstanding. The District typically finances a major portion of its Capital

Improvement Program with 20-year, level payment, long-term debt in the form of either its own general obligation bonds or

low-interest Clean Water Fund Program loans from the State of Wisconsin.

In 2015, the District is considering the refunding of its 2008 F issue to reduce future debt service cost. The District will

execute the refunding if the following parameters are met: the maxium true interest cost will not exceed 3.50% and the

minmum present value savings will exceed 2.00%. The 2016 Capital Budget assumes an interest rate of 4 percent for this

new money issue.

Budgeted debt service in 2016 for District-issued general obligation bonds is as follows:

District Bonds 2015 Net Debt Service

All Amounts in Thousands

Series Gross Debt Service

Less: Debt

Service Fund

Net Debt

Service

2003I 6,477 5 6,472

2005A 6,341 4 6,337

2007A 22,442 22,192 250

2008F 5,465 3 5,462

2010L 4,042 2 4,040

2015A 3,700 3,700 -

Total $48,467 $25,906 $22,561


Estimated debt service requirements for District-issued bonds, including $245.4 million of new bonds projected to be issued

through 2020 are as follows:

District Bonds Debt Service Schedule


Year Principal Interest Total

2016 $34,840 $13,627 48,467

2017 $36,435 $13,052 49,487

2018 $21,391 $13,588 34,980

2019 $23,607 $14,753 38,359

2020 $25,785 $15,597 41,382

2021 $28,198 $16,802 45,000

2022 - 2041 357,254 152,291 509,544

Total $527,510 $239,710 $767,220


Operating Budget Impact

No significant impact.

State Loans

X02001 Clean Water Fund Program Loans Project Purpose

Clean Water Fund Program loans are a funding source for most major conveyance and water reclamation facility capital

projects. This project represents the budget year’s repayment obligation of this funding to the State of Wisconsin. Timely principal and interest payments are critical in maintaining the District’s bond rating. Project Scope

The Clean Water Fund Program, established under section 144.21 and 144.2415 of Wisconsin Statutes, provides low-interest

loans for the construction of wastewater treatment works, non-point source pollution projects and estuary projects. Each loan

is for a period of 20 years with principal payment beginning within 12 months after the expected date of project completion.

Since the beginning of the loan program in 1991, the District has received 116 loan awards totaling $1.302 billion at interest

rates ranging from 2.200 to 4.953 percent. Projects for compliance maintenance receiving State fiscal year 2016 funding are

eligible for loans at 70 percent of the Clean Water Fund Program market interest rate.

This project provides payments to the State of Wisconsin in 2016 for financial assistance received under the Clean Water Fund

Program.

2016 Clean Water Fund Program


Gross Debt Service $73,828

Less Debt Service Fund 409

Total $73,419

In 2016, the District expects to receive $23.6 million in project expense reimbursements from low-interest, 20-year loans from

the Clean Water Fund Program. Five new loans are expected to be awarded from December 2015 through December 2016.

Estimated debt service requirements for Clean Water Fund Program loans, including disbursements from new loans projected

to be received through 2021 are as follows:

Clean Water Fund Program Debt Service Schedule



2016 55,319 18,509 73,828

2017 54,189 18,569 72,758

2018 55,262 17,926 73,187

2019 55,232 19,561 74,792

2020 55,201 21,172 76,373

2021 55,170 20,837 76,007

2022 - 2041 487,931 126,606 614,537

Total $818,303 $243,179 $1,061,482




X02002 Wisconsin Economic Development Corporation Project Purpose

In August 2010, the District entered into a State Energy Program Agreement with the Wisconsin Department of Commerce.

Pursuant to 2011 Wisconsin Act 32, the Agreement was transferred to the Wisconsin Economic Development Corporation

(WEDC), a public body corporate and politic succeeding the Department. The WEDC has provided the District $5.9 million for

the purpose of economic development pursuant to the American Recovery and Reinvestment Act of 2009.

Project Scope

The loan from WEDC provides partial funding for the Gas Turbine Replacement, Project J06037, at the Jones Island Water

Reclamation Facility. The loan is interest-free through April 2016. The District intends to repay the remaining loan principal

on May 1, 2016. Unlike most other District debt which is secured by a tax levy pledge, the security for repayment of the loan

from the WEDC is in the form of a security interest on the equipment purchased with loan funds.

Debt service requirements for the WEDC loan are as follows:

Wisconsin Economic Development Corporation Loan



Prior $3,240 0 $3,240

2016 2,706 0 2,706

2017 0 0 0

2018 0 0 0

2019 0 0 0

2020 0 0 0

2021 0 0 0

Total $5,945 0 $5,945



X03003 Intergovernmental Loan

Project Purpose

In 2010, the District entered into an Intergovernmental Cooperation Agreement with the City of Franklin to design, construct,

and finance the Ryan Creek Interceptor which will ultimately become an asset of the District. The City of Franklin has received

a Clean Water Fund Program loan of $24,588,635 at 2.46 percent for the project.

Project Scope

The District’s obligation is to make payments to the City of Franklin, beginning in 2015, which will equal the total principal and

interest on the CWFP loan. The CWFP loan will be paid off in 2031. Ownership of the Ryan Creek Interceptor will transfer to

the District at that time.

Debt service payments to the City of Franklin are as follows:

Intergovernmental Loan with City of Franklin



Prior $1,129 $564 1,694

2016 $1,157 $536 1,693

2017 $2,288 $1,878 4,166

2018 $1,215 $478 1,693

2019 $1,245 $448 1,692

2020 $1,275 $417 1,692

2021 $1,307 $385 1,691

2022 - 2031 16,280 2,302 18,582

Total $24,589 $6,623 $31,209



Glossary of Acronyms and Terms

BOD Biochemical Oxygen Demand

BMPs Best Management Practices

CAFR Comprehensive Annual Financial Report

CMOM Capacity, Maintenance, Operation and Management

CNG Compressed Natural Gas

COD Chemical Oxygen Demand

CSO Combined Sewer Overflow

D&D Drying and Dewatering Facility

DNR Department of Natural Resources

EPA United States Environmental Protection Agency

FEMA Federal Emergency Management Agency

GAAP Generally Accepted Accounting Principals

GFOA Government Finance Officers Association

GI Green Infrastructure

GIS Geographic Information System

GBT Gravity Belt Thickener

H2S Hydrogen Sulfide

HHW Household Hazardous Waste

I/I Infiltration and Inflow

I&C Instrumentation and Control System

IPS Interplant Sludge System

ISS Inline Storage System (Deep Tunnel)

IWI Index of Watershed Indicators

IWPP Industrial Waste Pretreatment Program

LEED Leadership in Energy and Environmental Design

LFG Landfill Gas

LID Low Impact Development

LIMS Laboratory Information Management Systems

M7 Milwaukee 7

MBE Minority Business Enterprise

MCRR Material Capital Repair and Replacement

MGD Million Gallons per Day

MIS Metropolitan Interceptor Sewer System

MMAC Metropolitan Milwaukee Association of Commerce

MMSD Milwaukee Metropolitan Sewerage District

NACWA National Association of Clean Water Agencies

NS North Shore Interceptor

NPDES National Pollution Discharge Elimination System

NWSRS Northwest Side Relief Sewer

OCIP Owner Controlled Insurance Program

P2 Pollution Prevention Initiative

PCB Poly Chlorinated Biphenyl

PPII Private Property Infiltration and Inflow

QA/QC Quality Assurance and Quality Control

RACM Redevelopment Authority of the City of Milwaukee

RAS Return Activated Sludge

SEWRPC Southeastern Wisconsin Regional Planning Commission

SSES Sewer System Evaluation Survey

SSO Sanitary Sewer Overflow

SWMBE Small, Women-, or Minority-Owned Business Enterprise

SWWT Southeastern Wisconsin Watershed Trust

TAT Technical Advisory Team

TAS Thickened Activated Sludge

TMDL Total Maximum Daily Loads

TSS Total Suspended Solids

VFD Variable Frequency Drive

VWM Veolia Water Milwaukee

WAS Waste Activated Sludge

WDNR Wisconsin Department of Natural Resources

WII Water Impact Index

WisDOT Wisconsin Department of Transportation

WPAP Water Pollution Abatement Program

WPDES Wisconsin Pollutant Discharge Elimination Systems

WRF Water Reclamation Facilities

WRP Watershed Restoration Plan

Abatement: The measures taken to reduce or eliminate pollution.

Acre-Foot: A term used in measuring the volume of water that is equal to the quantity of water required to cover 1 acre, 1 foot deep; 43,560 cubic feet. Storage volumes are usually expressed in acre-feet.

Accrual Basis of Accounting: A method of accounting in which revenues are recorded when measurable and earned, and expenses are recognized when a good or service is used.

Activated Sludge (AS): The interaction of microorganisms, wastes, and oxygen to form sludge. Activation takes place during the aeration process.

Activated Sludge Process: A biological process that removes pollutants by breaking down organic matter in raw sewage and converting it into sludge. AS process is the form of secondary treatment used by the District.

Ad Valorem Tax: A tax levied according to the value of the property, merchandise, etc., being taxed.

Agri-Life®: An anaerobically digested, organic sludge formerly produced at the South Shore Water Reclamation Facility. It is injected into farmland as a soil conditioner and is also reprocessed into Milorganite®.

Anaerobic Digestion: The process by which sludge is stabilized by biological action in a temperature-controlled, oxygen-free (anaerobic) environment (digesters). The stabilized sludge is injected into farmland as a soil conditioner (Agri-Life®). The digester gas resulting from the biological action provides energy to run the South Shore plant.

Appropriation: A sum of money or total of assets devoted to a special purpose.

Average Flow: Average quantity of wastewater entering the treatment system over a given period of time.

Balanced Budget: A budget in which current revenues equal current expenditures.

Biochemical Oxygen Demand (BOD): A measure of the amount of oxygen used up in the anaerobic decomposition of organic matter. The BOD test utilizes the oxygen from air dissolved in water and reflects treatability or stage of decomposition. It gives a direct measurement of the strength of wastewater, usually expressed in mg/l (milligrams per liter).

Bio-swale: Landscape designed to remove silt and pollution from surface runoff water.

Bond: A written promise to repay debt on a specific date in the future, along with payment of a specified amount of interest at predetermined intervals while the debt is outstanding.

Bypass: A flow relief device by which sanitary sewers, intercepting sewers or main sewers can discharge a portion or all of their flow, by gravity, into a receiving body of surface water to alleviate surcharging of intercepting or main sewers.

Capacity assurance, Maintenance, Operation and Management (CMOM): A program where the District works with the 28 communities in its service area to control the degradation of the sewer systems and curtail infiltration and inflow.

Capital Budget: A planned schedule of projects that acquire or improve land, waters, property or facilities to enhance sewerage services in the District’s service area.

Capital Expenditure: The costs of acquiring, purchasing, adding to, leasing, planning, designing, constructing, extending, and improving all or any part of a sewerage system and of paying principal, interest or premiums on any indebtedness incurred for these purposes. To be a capital expenditure project costs must be greater than or equal to $25,000, with a service life of ten or more years and must represent an identifiable addition to facilities or extend the service life of existing facilities. Equipment replacement costs must be greater than or equal to $25,000 and a service life greater than 20 years.

Capital Improvement Program (CIP): A long-range plan of the District for the construction rehabilitation and replacement of the District-owned and operated infrastructure.

Channelization: The artificial enlargement or realignment of a stream channel.

Chemical Oxygen Demand (COD): Measure of the amount of oxygen required to chemically oxidize organic and inorganic compounds in water.

Chlorination: Chlorine is added to the reclamation facility effluent before it is discharged into Lake Michigan to kill most of the bacteria.

Clean Water Fund Loan: This program provides low-interest loans for the construction of wastewater treatment facilities, nonpoint source pollution projects, and estuary projects.

Clearwater: Water entering the sanitary sewer system through infiltration or inflow. It reduces the sewer system capacity to carry sanitary sewage.

Coarse Screening: First step in preliminary treatment, which removes debris from the wastewater by screening.

Collection and Transportation System: A series of sewers, manholes, pumping facilities, and force mains, which carry wastewater from residences, commercial establishments, public buildings, institutions, and industrial plants. It terminates at a reclamation facility. Bypasses are considered a part of this system.

Collector Sewers: That portion of the collection and transportation system, which gathers wastewater from individual buildings and transports it through a network of sanitary sewers to interceptor sewers.

Combined Sewers: Sewers that carry both, sewage and stormwater runoff.

Compressed Natural Gas (CNG): A fossil fuel substitute for gasoline, Diesel fuel, and propane. CNG is an alternative to gasoline that is made by compressing natural gas to less than 1 percent of its volume at standard atmospheric pressure. It consists mostly of methane, and is odorless, colorless, and tasteless. It is drawn from domestically drilled natural gas wells or in conjunction with crude oil production.

Conveyance System: The system of sewers designed and operated to intercept and carry sewage from local government collection systems to the water reclamation facility.

Crosstown Interceptor: That part of the Inline System from Jones Island to the West.

Datalogger: An electronic device that records data over time or in relation to location. The District uses dataloggers to collect continuous groundwater level measurements at 30 minute increments.

Debt Service: Payments of interest and principal on bonds or other long-term borrowing.

Deep Tunnel: A major project of the Water Pollution Abatement Program that consisted of constructing 28.5 miles of tunnels 300 feet underground and designed to minimize sewer overflows. (Also see Inline Storage System)

Depreciation: A measure of the decrease in value of an asset over a specific period of time.

Design Flow: Average quantity of wastewater, which a water reclamation facility is designed to handle, expressed in millions of gallons per day (MGD).

Detention Pond: A surface water runoff storage facility that is normally dry but is designed to hold (detain) surface water temporarily during and immediately after a heavy rainfall.

Dewatering: Any process that removes water from sludge, i.e., vacuum filtering, centrifuging, decanting, heat-drying, etc. The term is also used to describe the removal of groundwater during sewer construction projects.

Dissolved Oxygen: Oxygen dissolved in water (as opposed to gaseous oxygen which occurs in water only as bubbles), available for respiration by most aquatic organisms.

District: The area that is provided water reclamation services by the Milwaukee Metropolitan Sewerage District.

Drop Shaft: A vertical shaft used to get wastewater from the surface to the Inline Storage System.

Dryer Cyclone: The Dryer Cyclone is a piece of equipment used as part of the Milorganite® process to remove dust particles from the dryer exhaust.

Easements: A right to obtain access to property; can be temporary or permanent.

Effluent Discharge: (1) A liquid which flows out of a containing space; (2) Sewage, water or other liquid, partially or completely treated, or in its natural state, flowing out of a reservoir, basin or reclamation facility, or part thereof.

Effluent Limitations: The maximum amount of a pollutant that a point source may discharge into a water body. They may allow some or no discharge at all, depending on the specific pollutant to be controlled and the water quality standards established for the receiving waters.

Enterprise Fund: Utilized to account for operations that are financed and operated in a manner similar to private sector enterprises where the cost of providing services to the general public is recovered primarily through user charges.

Environmental Assessment: The aspect of the facility planning process and resulting report analyzing environmental, social,

and economic implications of the proposed alternatives.

Environmental Protection Agency (EPA): The federal agency responsible for regulating water quality and the Federal Clean Water Act.

Equipment Replacement Fund: In accordance with Wisconsin Department of Natural Resources requirements, a reserve fund established by the District equal to 5 percent of the asset value of District equipment with a value over $25,000 and useful life between 10 and 20 years.

Extraterritorial Communities: Communities outside the Milwaukee Metropolitan Sewerage District boundaries that receive contracted service from the District.

Fecal Coliforms: Euteric bacteria, primarily Eschericia coli, found in fecal matter and used as indicators of the presence of pathogenic bacteria.

Filter Cake: Sludge that has been dewatered in the vacuum filters and is ready for heat drying into Milorganite®; it has a water content of 86 percent and looks like wet cardboard.

Fine Screening: Final step of preliminary treatment at Jones Island, which removes fine particles and debris such as hair and cigarette butts not caught in coarse screening.

Fiscal Year: The time period designated by the District signifying the beginning and ending period for recording financial transactions.

Floodwall: A concrete or masonry embankment built to restrain the flow of water of a river bank and protect land from flooding.

Full-time Equivalent: A unit that indicates the workload of an employed person (or student) in a way that makes workloads or class loads comparable across various contexts.

Fund: A sum of money or other resources whose principal or interest is set apart for a specific objective.

Fund Balance: The difference between a fund’s assets and its liabilities. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances.

Geographic Information System (GIS): An organized collection of computer hardware, software, geographic data, and personnel designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information.

Green Infrastructure: An adaptable term used to describe an array of products, technologies, and practices that use natural systems – or engineered systems that mimic natural processes – to enhance overall environmental quality and provide utility services. As a general principal, Green Infrastructure techniques use soils and vegetation to infiltrate, evapotranspirate, and recycle stormwater runoff.

Green alleys, streets, and parking lots: Green alleys, streets and parking lots are typically in the public right-of-way and can provide a combination of different benefits designed to channel, infiltrate and evapotranspire rainwater. They include permeable pavement, sidewalk planters, landscaped medians and bio-swales, inlet restrictors, greenways and trees, and can also take advantage of recycled materials.

Green Roofs: Green roofs (also known as eco-roofs) are either partially or completely planted with vegetation growing in soil (or a growing medium) to hold rainwater. They can be planted in waterproof trays or on top of a waterproof barrier, and can be intensive (like a rooftop park) or extensive (relatively lightweight). They function for stormwater management purposes when they are lush and green as well as when they are dormant.

Greenways: Greenways include riparian and non-riparian buffer zones and strips that store and drain stormwater runoff into the ground naturally. As vegetated strips that help to infiltrate and evapotranspire both rainwater and snow melt, they can be placed along bike paths, sidewalks, riverbanks, and streets. They can be planted in native vegetation, in mowed grass, and as gardens.

Heat Drying: Final step in the production of Milorganite®. Rotary drum dryers tumble-dry filter cake into a dry granular product that can be packaged. Heat drying destroys pathogens in the sludge (filter cake).

Hydrogen Sulfide: A colorless gas with the characteristic foul odor of rotten eggs. It is heavier than air, very poisonous,

corrosive, flammable, and explosive. It results from the bacterial breakdown of organic matter in the absence of oxygen, such as in sewers.

Impervious Areas: Any pavement or structural element including, but not limited to, roofs and paved roads, driveways, and parking lots, that prevents rain, surface water runoff, or melting snow from infiltrating into the ground below. Lack of infiltration can increase surface runoff and contribute to flood risk and pollutant transport.

Industrial Cost Recovery: A provision in the 1972 Federal Water Pollution Control Act (FWPCA) that requires industries to pay back to the federal government the extra capital costs that their discharges impose on municipal treatment plants. (The 1977 Clean Water Act established an 18-month moratorium on Industrial Cost Recovery).

Infiltration/Inflow (I/I): Total quantity of water entering a sewer system. Infiltration means entry through such sources as defective pipes, pipe joints, connections or manhole walls. Inflow signifies discharge into the sewer system through service connections from such sources as area or foundation drainage, springs and swamps, storm waters, street wash waters, or sewers.

Influent: The wastewater entering the reclamation facility.

Inline Storage System (ISS): The Inline Storage System (ISS) provides relief to the Metropolitan Interceptor Sewer (MIS) system during extreme wet weather periods by allowing excess flows from the MIS to be diverted to the ISS in both the separate sewer area and the combined sewer service areas. The excess flow is stored in the ISS until reclamation facility capacity is available. (Also see Deep Tunnel)

Instrumentation & Control (I&C): Equipment used to monitor and control wastewater treatment processes such as flows, dissolved oxygen levels, valve positions, and equipment operations.

Interceptor: A sewer that carries sanitary waste that is built by the District. These are large sewers that collect wastewater from local trunk sewers and convey it to the water reclamation facility.

Intergovernmental Cooperation Council (ICC): Comprises 19 communities located within Milwaukee County. The mayors and village presidents meet on a monthly basis to discuss topics of common interest and regional concern.

Laboratory Information Management System (LIMS): An automated system used by the District’s Central Laboratory, Industrial Waste and Water Quality Research departments to manage data including test scheduling, case log-in, worksheets, instrument interfaces, reporting, research, test results, and dispersion of the results to designated areas.

Lateral: That part of the horizontal piping of a drainage system which extends from the end of a building drain and which receives the building discharge and conveys it to the sewer system.

Lift Station: A facility in a sewer system consisting of a receiving chamber, pumping equipment, and associated drive and control devices which collect and lift wastewater to a higher elevation when the continuance of the sewer at reasonable slopes would involve excessive trench depths; or that collects and raises wastewater through the use of force mains from areas too low to drain into available sewers.

Low Impact Development (LID): Integrates ecological and environmental considerations into all phases of urban planning, design, and construction in order to avoid encroaching on environmentally fragile or valuable lands, and to decrease runoff volumes and peak flow impacts.

Milwaukee 7 (M7): Milwaukee 7, launched in September 2005, was formed to create a regional, cooperative economic development platform for the seven counties of southeastern Wisconsin: Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha. Its mission is to attract, retain and grow diverse businesses and talent.

Metropolitan Interceptor Sewers (MIS): Portion of the collection and transportation system, which receives wastewater from collector sewers from conveyance to the point of treatment and are owned and maintained by the Milwaukee Metropolitan Sewerage District. An interceptor sewer is designed to have a limited number of connections for receiving wastewater from the collector sewer system.

Milorganite®: An organic nitrogen fertilizer (6-2-0) produced from waste-activated sludge at the Jones Island plant that is an excellent lawn and turf, non-burning, slow release fertilizer.

Minority Business Enterprise: An independent business concern that is at least 51 percent owned and controlled by minority members, that has undergone a pre-certification process that enables it to receive enhanced consideration on bids and

proposals it submits to MMSD.

Native Landscaping: The use of native plant species that can tolerate the drought and flooding cycles of an area. Native plants are those that evolved in a particular area and are adapted to local climate conditions.

Near-Surface Collector Sewer: A sewer or system of sewers constructed to accept excess flow from existing interceptors and conveys the excess flow to the Inline Storage System.

Nonpoint Source Pollutants: Pollutants which do not enter the water from any discernible, confined and discrete conveyance but rather wash off, run off or seep from broad areas of land.

North Shore Interceptor (NS): That portion of the Inline Storage System that connects to the Crosstown Interceptor and proceeds north to West Hampton and then west to North 51st Street. Other drop shafts (NS 4, 5, 12, etc.) connect to the NS.

NS – 4, 5, 12, etc.: Drop shafts connecting to North Shore Interceptor.

Operations and Maintenance (O&M) Budget: Annual budget for activities related to controlling, operating, managing, and maintaining the sewerage system.

Overflow: A flow relief device by which sanitary sewers, intercepting sewers or main sewers can discharge a portion or all of their flow, by gravity, into a receiving body of surface water to alleviate surcharging of intercepting or main sewers.

Peak Flow: The maximum volume of effluent expected to enter a treatment system over a given time period. Treatment systems are designed based on an estimate of the rate of peak flow to average flow for different segments of the system.

Phosphorus Removal: Excess phosphorus in Lake Michigan can kill off fish life by stimulating the growth of excess algae. A small amount of iron sulfate (pickle liquor) is added to the wastewater. The iron combines chemically with the phosphorus and settles into the sludge that is removed.

Pickle Liquor (Iron Sulfate): A chemical waste from local industries that is used to remove phosphorus from wastewater.

Point Source Pollutants: Those that enter the water from any discernible, confined, and discrete conveyance such as a sewer pipe, culvert, tunnel, or other channel.

Pollution Prevention Initiative (P2): Within the Industrial Waste Pretreatment Program, a point source control system that involves the elimination of hazardous material inputs, improvements to in-production processes, and the “closed looping” of residual streams.

Porous Pavement: porous pavement can reduce and infiltrate surface runoff through its permeable surface into a stone or filter media below. Runoff then percolates into the ground, is conveyed offsite as part of a stormwater system, or is collected and contained for future use. Porous pavement can be asphalt, concrete or pavers, but differs from traditional pavement because it excludes fine material and instead provides pore spaces that store and pass water.

Preliminary Treatment: The first stage of wastewater treatment that removes debris, sand, grit, and fine particles through use of bar screens, grit changes, and sedimentation tanks.

Pretreatment: Any process used by local industries to reduce pollution load before wastewater is introduced into a main sewer system or delivered to a reclamation facility.

Primary Treatment: The process following preliminary treatment at the reclamation facilities that allows solids to settle, thicken, and be removed. Primary effluent goes on to secondary treatment. The sludge is removed for processing by anaerobic digestion.

Pumping Station: A relatively large sewage pumping installation designed not only to lift sewage to a higher elevation but also to convey it through force mains to gravity flow points located relatively long distances from the pumping station.

Rain Barrel: A barrel that collects and stores rainwater from a rooftop to use later for lawn and garden watering.

Rain Gardens: Gardens that are watered by collected or pooled stormwater runoff, slowly infiltrating it into the ground along root pathways. They are typically planted with wildflowers and deep-rooted native vegetation, which helps infiltrate rain channeled to them from roofs, driveways, yards and other impervious surfaces.

Rainwater Harvesting: Rainwater harvesting encompasses the capture and storage of rainwater. It also includes the ability to reuse stored rainwater for appropriate uses, primarily gardening and lawn watering. Harvesting not only includes the collection systems, but also the rain barrels and cisterns used to store the water.

Red Circle Rate: A pay rate that is above the maximum range assigned to the job grade. Employees are usually not eligible for additional pay increases until the range maximums exceed the individual pay rate.

Relief Sewer: A sewer added to convey projected flow in excess of the flow that the existing sewer can effectively carry.

Sanitary Sewers: Sewers that are designed to carry only domestic or commercial sewage.

Secondary Treatment: Biologically removes dissolved solids and pollutants from the water by means of the activated sludge process.

Separated Sewer: A sewer system where sanitary sewers carry domestic and commercial sewerage and stormwater is carried in a separate sewer.

Service Area: The area served by the District’s wastewater treatment system.

Sewage: Sewage refers to the wastewater flow from residential, commercial, and industrial establishments, which flows through the pipes to a reclamation facility.

Sewer System Rehabilitation Program: The rehabilitation and repair work necessary for the elimination of excessive infiltration/inflow. Elements considered in this program include grouting of sewer joints and laterals; relaying of sewer lines/laterals; grouting/replacement of manholes; removal of direct connections such as roof leaders, sump pumps and catch basins.

Sewerage: Sewerage refers to the system of sewers and physical facilities employed to transport, treat, and discharge sewage.

Sinking Fund: A fund used solely for paying debt service on general obligation bonds or notes. General obligation bonds and notes include a pledge of tax levies to be deposited into a debt service sinking fund as provided in Section 67.11 of Wisconsin Statutes. Any interest earned on monies placed in the sinking fund stays within the fund.

Siphon: A tube through which a liquid is lifted over an elevation by the pressure of atmosphere and is then emptied at a lower level.

Sludge: The accumulated settled solids deposited from sewage or industrial wastes, raw or treated, in tanks and basins, and containing more or less water forming a semi-liquid mass.

Small Business Enterprise (SBE): Those businesses that adhere to guidelines of U.S. Small Business Administration that are afforded special opportunities, when feasible.

Solids: The particulates contained in, or removed from wastewater (debris, sand and grit, sludge). Also, a synonym for sludge in cases where it can be reused in some beneficial way, i.e., Milorganite®, Agri-Life®.

Solids Processing: After secondary treatment, the solids (sludge) are processed prior to being recycled. At Jones Island, the processing involves vacuum filtering (dewatering) and heat drying into Milorganite®. At South Shore, the solids (sludge) are anaerobically digested into Agri-Life®.

Solids Utilization: Solids that can be recycled. At Jones Island, solids are converted into Milorganite®; at South Shore into Agri-Life®.

Southeastern Wisconsin Regional Planning Commission (SEWRPC): The advisory regional plan commission serving Milwaukee, Ozaukee, Racine, Kenosha, Washington, Walworth, and Waukesha counties. The commission is made up of 21 Commissioners, three from each of the seven counties. SEWRPC is not a state agency. It is responsible for producing the Area-wide Water Quality Management Plan.

Southeastern Wisconsin Watershed Trust (SWWT): This is a voluntary, non-taxing partnership of independent government units, special purpose districts, other organizations, and individuals to achieve cooperation and collaboration within Greater Milwaukee Watersheds.

Special Section Sewers: Irregularly shaped sewers with a smaller section at the bottom of the pipe than at the top.

Storm Sewer: A conduit that collects and transports rain and snow runoff back to the surface water. In a separate sewerage system, storm sewers are entirely separate from those carrying domestic and commercial wastewater.

Stormwater Best Management Practices (BMPs): Any practices that reduce the adverse impacts of stormwater runoff.

Stormwater Rule: A region-wide effort to manage future flooding in southeastern Wisconsin that will manage the volume

and rate of stormwater runoff from new development and redevelopment so that peak flows in a watershed do not increase downstream flooding.

Stormwater Trees: Stormwater trees can hold rainwater on their leaves and branches, infiltrate it into the ground, absorb it through root systems and evapotranspire it to the atmosphere.

SWOT Analysis: A strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a plan. It involves specifying the project’s objective and identifying the internal and external factors that will help or inhibit achieving that objective.

Technical Advisory Team (TAT): A cooperative effort with District staff and members of the 28 communities served by the District. The group also includes representatives of the realtors and builders associations, the Wisconsin Department of Natural Resources, Milwaukee County, and the Southeastern Wisconsin Regional Planning Commission. Provides advisory level input for the development of the 2020 Facilities Plan and other MMSD projects, programs and initiatives.

Total Suspended Solids (TSS): Small particles of solids pollutants in sewage that contribute to turbidity and that resist separation by conventional wastewater treatment means.

2010 Facilities Plan: A comprehensive review of improvements to the wastewater system required to provide responsible pollution abatement through the planning period ending 2010.

2020 Facilities Plan: A plan that identifies system capital improvements necessary for wastewater, conveyance, treatment, and watercourse management needs through 2020.

User Charges: Fees levied upon residential, commercial, and industrial users of a wastewater treatment system based upon the volume and characteristics of the waste.

User Class Codes: Certified Commercial; Non-Certified Industrial; Certified Industrial; Waste Strength Certified Industrial. These codes are used in compiling information for a pretreatment program for the industrial user.

Waste Activated Sludge (WAS): Settled, activated sludge that is not returned to the process to “seed” incoming wastewater but is drawn off “wasted.” At Jones Island, WAS is heat dried to produce Milorganite®.

Waste Load Allocations: Distribution of total “pollutant load” permitted on a particular water body among the various dischargers to that water body.

Watercourse System Maintenance Plan: System-wide plan that will monitor all watercourses within District jurisdiction to: (1) provide coordination on elements of maintenance; (2) establish a single agenda; and (3) promote safe and environmentally secure watercourses. Monitoring will be conducted on a cyclical basis, following a significant flow, and following receipt of a request. Determination will be made if action is required and, if so, who the responsible party is to undertake the action.

Water Impact Index (WII): An interactive tool that is used to quantify the impact of both water quality and water quantity.

Water Pollution Abatement Program (WPAP): A major program from 1977 to 1996 that repaired and expanded the entire metropolitan area wastewater conveyance and treatment system.

Watershed: The contributing land area confined by topographic divides that drain into a lake or river. Also called catchment area, drainage area, or river basin, and expressed in acres or square miles.

Wetlands: Areas that have soils that are inundated or saturated for part of the year or for the entire year, and are also known as bogs, marshes, and swamps. Under federal definition, the inundation or saturation of soil in a wetland is at a frequency and duration to sufficiently support a prevalence of vegetation typically adapted for life in saturated soils. Wetlands allow rainwater to pool and slowly infiltrate into the ground, but are also seeps that provide water at the ground surface.

Wisconsin Pollution Discharge Elimination System (WPDES): Used by the DNR to regulate sewers and wastewater treatment plants.

Woman’s Business Enterprise: A business that is 51% owned, operated or controlled by women.

Working Capital: The capital of an organization that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Pay Grades, Salaries, and Wages Pay Grades All staff positions are classified by a pay grade. Pay grade assignments consider the job content and skill set needed for each job classification. The District strives to maintain a skilled and competitive workforce; thus, the District also considers the local market data and pay rates when determining pay grades. Represented Staff The bargaining unit contract determines only the base wage rate for each represented position. The current contract is effective from May 1, 2015 to April 30, 2016. The District uses a six-increment pay plan for each position that is grouped into seven pay grades (R4-R10). The Wisconsin Employment Relations Commission (WERC) has made permanent the rule requiring unions to annually recertify their status as the representative for general municipal employees. This will require AFSCME to petition for recertification by January 30, 2016, to be eligible to continue representing the District’s Local 366 employees. If a petition is not timely filed, then the represented employees will become non-represented employees effective May 1, 2016. If AFSCME does file a timely petition for recertification, then the WERC will conduct an election to determine the status of the covered employees. If recertification does not occur, union decertification will take effect May 1, 2016. As such, salary adjustments for represented employees typically taking effect on May 1 resulting from a new contract and base wage schedule would not occur. In order not to delay expected pay raises for those affected employees, the District may request the Commission to approve a mid-year salary adjustment until such time that all previously represented staff could be incorporated into the District’s non-represented wage schedule. Administrative & Support Staff Administrative and support staff have a six-step pay plan for each position that is grouped into three pay grades (5-7). As recommended by the District’s compensation consultant, Carlson Dettman, the 2016 Operations & Maintenance Budget applies a structural adjustment of 2.1 percent to the pay grades. Management & Non-Represented Staff Management and non-represented staff are grouped into fourteen pay grades (8-21). As recommended by the District’s compensation consultant, Carlson Dettman, the 2016 Operations & Maintenance Budget applies a structural adjustment of 2.1 percent to management and non-represented pay grades.

Salary and Wages The District’s compensation structure has distinct pay plans for each of the three classifications of positions: represented staff, administrative and support staff, and management and non-represented staff. Represented Staff In 2016, employees who are eligible to receive a step increment will receive the increment on the employee’s job entry date unless the maximum step has already been reached or the employee is red-circled in the position. Administrative & Support Staff Each employee receives a step increment on his or her job entry date unless the maximum increment has been reached or the employee is red-circled. Management & Non-Represented Staff Management and non-represented employees who are in pay grade 8 or above use a pay-for-performance compensation system. Employees are evaluated annually and receive a salary increase based on their evaluation. However, due to recent economic conditions, the policy for management and non-represented employees has been a flat percent increase in lieu of a merit-based increase. For example, the 2014 Operations & Maintenance Budget included a flat 2.0 percent increase in lieu of merit, and the 2015 Operations & Maintenance Budget included a flat 2.25 percent increase in lieu of merit. The 2016 Operations & Maintenance Budget includes a flat 2.5 percent increase in lieu of merit. Finally, only staff who have a salary that is less than the pay grade’s pay range mid-point receive a structural adjustment.

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Bargaining Unit Wage Schedule Pay Grade 1st Increment 2nd Increment 3rd Increment 4th Increment 5th Increment 6th Increment

Custodian 4R $ 30,616.35 $ 31,305.46 $ 31,971.47 $ 32,660.37 $ 33,349.68 $ 34,015.49

Laboratory Helper 4R $ 30,616.35 $ 31,305.46 $ 31,971.47 $ 32,660.37 $ 33,349.68 $ 34,015.49

Receptionist 4R $ 30,616.35 $ 31,305.46 $ 31,971.47 $ 32,660.37 $ 33,349.68 $ 34,015.49

Clerk Stenographer 5R $ 35,761.23 $ 36,564.94 $ 37,368.86 $ 38,149.70 $ 38,953.82 $ 39,734.66

Records Information Management Technician 5R $ 35,761.23 $ 36,564.94 $ 37,368.86 $ 38,149.70 $ 38,953.82 $ 39,734.66

Shipping Clerk 5R $ 35,761.23 $ 36,564.94 $ 37,368.86 $ 38,149.70 $ 38,953.82 $ 39,734.66

Account Clerk 6R $ 41,342.50 $ 42,261.23 $ 43,179.76 $ 44,098.91 $ 45,017.44 $ 45,936.18

Sample Boat Operator/Technician 6R $ 41,342.50 $ 42,261.23 $ 43,179.76 $ 44,098.91 $ 45,017.44 $ 45,936.18

Secretary 6R $ 41,342.50 $ 42,261.23 $ 43,179.76 $ 44,098.91 $ 45,017.44 $ 45,936.18

Buyer/Purchasing Data Clerk 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Customer Services Coordinator 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Engineering Aide (Apprentice) 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

GIS Technician 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Payroll Specialist 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Safety & Risk Mgmt Specialist 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Survey Technician 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Technical Services Coordinator 7R $ 47,474.75 $ 48,531.39 $ 49,588.24 $ 50,644.46 $ 51,700.90 $ 52,757.74

Desktop Technician 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

Engineering Aide 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

CAD Coordinator 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

Laboratory Technician 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

Monitoring/Sampling

Shop & Field Technician 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

Monitoring/Sampling Technician 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

Project Coordinator 8R $ 54,296.53 $ 55,513.54 $ 56,708.08 $ 57,925.30 $ 59,119.84 $ 60,321.66

GIS Data Coordinator 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Laboratory Chemist 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Lead Inspector 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

LIMS Database Analyst 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Monitoring/Sampling Specialist 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Quality Assurance Inspector 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Survey Crew Chief 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

System Data Monitoring Analyst 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

System Monitoring Database Analyst 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Water Resources Specialist 9R $ 61,784.11 $ 63,162.32 $ 64,517.02 $ 65,895.44 $ 67,273.44 $ 68,651.65

Accountant 10R $ 70,167.34 $ 71,729.42 $ 73,291.30 $ 74,852.96 $ 76,414.62 $ 77,976.29

Data Center Specialist 10R $ 70,167.34 $ 71,729.42 $ 73,291.30 $ 74,852.96 $ 76,414.62 $ 77,976.29

Graphic Designer 10R $ 70,167.34 $ 71,729.42 $ 73,291.30 $ 74,852.96 $ 76,414.62 $ 77,976.29

Laboratory Microbiologist 10R $ 70,167.34 $ 71,729.42 $ 73,291.30 $ 74,852.96 $ 76,414.62 $ 77,976.29

Network Specialist 10R $ 70,167.34 $ 71,729.42 $ 73,291.30 $ 74,852.96 $ 76,414.62 $ 77,976.29

2016 Pay Grades and Wages Management and Non-Represented Employees

Pay Grade Minimum Midpoint Maximum

21 $150,477.68 $188,039.67 $225,601.65 20 $136,693.46 $170,924.26 $205,155.06 19 $125,321.48 $155,417.02 $185,512.56 18 $115,442.80 $142,551.75 $169,660.71 17 $106,483.06 $130,950.04 $155,417.02 16 $97,867.92 $120,382.14 $142,896.37 15 $90,746.08 $110,733.19 $130,720.30 14 $83,624.23 $102,003.18 $120,382.14 13 $77,765.94 $94,077.27 $110,388.59 12 $71,792.79 $86,840.54 $101,888.32 11 $66,968.31 $80,293.05 $93,732.66 10 $61,914.09 $74,319.89 $86,828.16 9 $57,778.83 $68,806.21 $79,833.58 8 $53,643.57 $63,866.86 $74,090.16

2016 Pay Grades and Ranges Non-Represented: Administrative & Support Staff

Pay Grade

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

7 $44,568.96 $47,555.54 $50,427.25 $53,413.83 $56,400.41 $59,386.99 6 $41,582.38 $44,339.22 $47,096.07 $49,852.91 $52,609.76 $55,366.60 5 $38,825.54 $41,352.65 $43,994.63 $46,521.72 $49,163.69 $51,690.81

Budget Policies Annual Budget Fiscal Year: The fiscal year of the Milwaukee Metropolitan Sewerage District begins on January 1 of each year and ends on December 31 of that year. The fiscal year is both the accounting and the budget year.

Enterprise Fund: The District prepares its financial statements on an enterprise fund basis. Generally Accepted Accounting Principles (GA AP) require state and local governments to use the enterprise fund to account for “business-type activities” – activities similar to those found in the private sector. Business-type activities include services primarily funded through user charges. The National Council of General Accounting Standards (NCGAS) defines the purpose of enterprise funds as: “…to account for operations (a) that are financed and operated in a manner similar to private business enterprises —where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.”

Within the Enterprise Fund, District expenditures are funded within two adopted budgets: an Operations & Maintenance Budget and a Capital Budget. The O&M Budget and the Capital Budget are funded differently.

Balanced Budget: It is required that the Milwaukee Metropolitan Sewerage District annually adopt a balanced budget in which District revenues and other sources of funds equal District expenditures and other uses in both the operating and capital budgets for the fiscal year. The District achieves this for the Operations & Maintenance Budget by offsetting total division expenditures and all other operating expenditures with funds from user charge billings, the User Charge Stabilization Fund, budget surpluses applied, and any other operating income. The District’s Capital Budget achieves this by offsetting total project expenditures and net debt service with tax levy income, non-member billings, use of available funds on hand, and all other capital income.

Budget Adoption The Executive Director, with approval of the Policy, Finance, and Personnel Committee, shall establish a calendar for public hearings and the Commission’s review of the proposed budget. A summary of the proposed budget is made available for public inspection at least 15 days prior to the public hearing. (Commission Policy 1-15.01)

Operations & Maintenance Budget: The Executive Director shall present annually a recommended detailed budget of operating and maintenance expenditures and estimated revenue for the ensuing calendar year. These recommendations will be presented to the Policy, Finance, and Personnel Committee which will review and make recommendations to the Commission for adoption. Commission action is required to authorize the adoption of the annual Operations & Maintenance Budget (majority vote) (Commission Policy 1-15.01).

Capital Budget: The Executive Director shall annually submit to the Commission the following: A. Total Project Costs – A list of all projects new to the current budget year with the estimated costs to complete each

project, as well as a list of all existing projects that have changes in previously granted total project cost. Commission action on the Total Project Costs is the policy setting mechanism, not an authorization to expend funds.

B. Capital Budget – The annual financing plan for the current year’s anticipated capital account expenditures. Commission action on the Capital Budget sets the level of taxing and other sources of funds for the current year’s capital expenditures and authorizes staff to expend funds for the current year.

C. Long-Range Financing Plan – The six-year plan identifies anticipated sources of funds for anticipated capital expenditures in each year of the six-year plan. It will also include a summary of actual revenues and expenditures for the preceding calendar year and an estimate of revenues and expenditures based on the first six months (or most current actual data) for the current calendar year. Commission action on the Capital Financing Plan approves the financial plan for out-years capital financing and capital expenditures for the planning purposes only; it does not set the level of taxing and other sources of funds or capital expenditures in subsequent years. (Commission Policy 1-15.02)

Commission action is required to authorize the adoption of the annual Capital Budget (majority vote). (Commission Policy 1-15.02)

The Commission has the authority to amend both the Executive Director’s Operations & Maintenance and Capital Budgets at adoption. (Commission Policy 1-15.09)

Budget Amendments New Projects: Commission action is required to authorize the addition of a new project not authorized in the adopted annual Capital Budget. The resolution presented to the Commission for approval must describe the project, identify the estimated amounts to be spent in the current year and over the life of the project, and identify the amounts to be transferred from other project(s) or from working capital to fund the new project. If funds are transferred between projects within the same project group (capital account) without increasing total authorized spending in that account, then a simple majority vote is required. If funds are transferred between project groups (capital accounts), or from working capital, then a two-thirds vote is required in accordance with state law. (Commission Policy 1-15.02)

Carryovers: Carryover of unexpended funds authorized in the Operations & Maintenance Budget to the next fiscal year is permitted with the approval of the Commission as an amendment to the Budget. The Executive Director shall present annually in March a list of funds budgeted in the previous fiscal year recommended for a carryover to the next fiscal year. The list shall include the following information: cost center, account, dollar amount recommended for carryover, purpose of expenditure, summary explanation of reason(s) funds remain unexpended, and summary of continuing need for goods or services to be procured. Operations & Maintenance funds may not be carried over more than one fiscal year. (Commission Policy 1-15.04)

Budget Transfers The Office of Management & Budget will maintain both the Operations & Maintenance and Capital Budgets by monitoring expenditure levels and evaluating requests for all budget transfers to ensure compliance with Commission policies.

Operations & Maintenance Budget: The Executive Director shall ensure that the annual expenditures of each of the operating divisions do not exceed the total funds budgeted for that division. When it is apparent that the total division budget for any of the divisions will be exceeded, a request for a fund transfer shall be brought to the Commission prior to an overrun. The total division budget for a division includes all monies budgeted for all cost centers within that division. Budget overruns in one division may not be used to offset overruns in another division without approval of the Commission. (Commission Policy 1-15.01)

Capital Budget: Commission action (two-thirds vote) is required to authorize the approval of amendments increasing the total authorized annual spending in the Capital Budget. (Commission Policy 1-15.02)

Within the limits of authority delegated by this or other Commission policy or action, the Executive Director may, without further Com- mission approval during the budget year, execute contract amendments and adjust project allocations within a single capital account to fund such amendments and to respond to actual project cash flows, provided that total spending in the affected capital account, as approved by the Commission, is not exceeded. (Commission Policy 1-15.02).

Budget Reserves Operating Reserves: Operating reserves are funds that have been segregated to meet legal requirements and/or have been segregated at the discretion of the Commission and are available only to the Operations & Maintenance Budget. (Commission Policy 1-15.08)

Equipment Replacement Fund: In accordance with the Wisconsin Administrative Code section NR-128.03 (18), the District is required to maintain an Equipment Replacement Fund (ERF) that will be funded specifically from user charges. User charges collected for the ERF are required to be maintained in a separate and distinct fund. The ERF will be used to fund replacement equipment and maintained at a level no less than five percent of the historical cost of all equipment with a cost greater than $25,000 and a service life greater than 10 years and up to 20 years.

User Charge Stabilization Fund: The User Charge Stabilization Fund (UCSF) was created after 1998, by the Commission to reserve some of the savings realized from the operation and maintenance contract with the first operating contract with the former provider United Water Services, for distribution to customers of the District in future years. The UCSF is maintained as a separate and distinct fund, and, within the fund, the balance is classified by the District’s four user charge

billing parameters. Interest earned on the savings is to remain in the fund. In accordance with the District’s objective of maintaining stable user charge billings, the UCSF will be maintained at a level no less than 2.5 percent of the current year’s revenues (refer to policy 1-15-08). Contributions to and withdrawals from the fund may be made by Commission action through the annual budget process.

Capital Reserves: Capital Reserves are funds that have been segregated to meet legal requirements and/or have been segregated at the discretion of the Commission and are available only to the Capital Budget. (Commission Policy 1-15.08)

Debt Service Funds: In accordance with section 67.11(1) of the Wisconsin Statutes, the District is required to establish and maintain a debt service fund for the payment of principal and interest on bonds and notes used in financing its capital improvement program. The District maintains a separate account for each of its own outstanding debt issues and one account for debt obtained through the State of Wisconsin Clean Water Fund Loan Program.

Annually, the District will levy an irrepealably tax sufficient to pay the principal and interest on the debt as it comes due in the following year. Taxes collected from this levy are placed into the debt service fund account and used to pay the annual debt service. Earnings from the investments in the debt service fund accounts remain until used as part of the debt service fund accounts.

Money shall not be withdrawn from a debt service fund and used for any purpose other than the purpose for which the fund was created until that purpose has been accomplished. After all the outstanding debt has been paid and retired, any balance in any debt service fund account may be transferred out and used as directed by the Commission. (Commission Policy 1-15.08)

Working Capital The District needs unreserved cash balances as working capital to pay routine and non-routine operating and capital expenses. Annually as part of the determination of user charge billings and capital funding, the District will assess and budget as necessary any adjustments to the specific working capital levels, considering fund balances, investments, and cash flow requirements.

Operating: The District shall attempt to maintain a working capital balance between 60 to 90 days of expenditures with a target of 75 days. (Commission Policy 1-15.08)

Capital: The District shall attempt to maintain a working capital balance between 90 to 150 days of expenditures with a target of at least 90 days. (Commission Policy 1-15.08)

Contingency Accounts Contingency accounts in both the Operations & Maintenance and Capital Budgets are used to ensure that adequate funds are available for unforeseen circumstances.

Operating: The District shall annually fund an Unallocated Reserve. Recommended changes regarding contingency accounts allow funding at a level within a range between 2.0 percent and 3.5 percent of net division expenditures. (Commission Policy 1-15.08)

Capital: To ensure that there are adequate funds for cost and schedule changes, unforeseen projects, and other unexpected circumstances, the Capital Budget shall fund an Allowance for Cost and Schedule Changes maintained within a range between 2.0 percent and 5.0 percent of the current year’s total budgeted project expenditures.

One-Time Revenues One-time revenues are those funds that cannot be relied upon to fund the continuing operations or capital expenditures of the District. They may be used to fund non-continuing expenses, such as litigation, the study of new cost-saving initiatives, to fund reserves, or the achievement of targeted working capital balance. (Commission Policy 1-15.08)

Debt Limitations: Per Commission Policy 1-73.18, the District intends to keep outstanding general obligation debt within 50 percent (2.5%) of the limit prescribed by law (5%) and at levels consistent with its credit objectives and long-range financing plan goal of 25 percent cash financing. Annual debt service requirements anticipated in the long-range plan are funded from the tax levy and other revenues, including available funds on hand.

Types: The District has authority under Section 200.55 of the Wisconsin Statutes to finance capital improvements through the issuance of debt instruments, including:

- General obligation bonds and promissory notes; - Bond anticipation notes; and - Revenue obligation bonds and notes

Even though the District also has authority to issue revenue obligations, the District shall issue general obligation bonds and notes to finance the capital improvements program, unless staff can demonstrate to the Commission that other, statutorily authorized debt instruments provide the District with a financial advantage.

Maturity of Debt: Staff shall utilize the following considerations in structuring debt maturities:

- long-range financing objectives; - the useful life of the project assets to be financed; and - a fair allocation of project costs to current and future customers benefiting from the project.

Fixed and Variable Rate Debt: The District intends to issue debt on a fixed-rate basis. Staff, however, may propose that the District issue securities that pay a variable rate of interest determined in accordance with a pre-determined formula or that results from a periodic remarketing of the securities, consistent with State law and covenants of pre-existing bonds, and depending on market conditions. The District will have no more than 15 percent of its outstanding general obligation bonds in variable-rate form.

Credit Objectives: The District will seek to maintain or improve its current credit rating with Moody’s Investors Service (Aaa), Standard & Poor’s (A A+), and Fitch Investors Service (A A A). The District will strive to maintain good relations with the rating agencies, routinely communicating with the rating agencies and keeping them informed of significant developments that could affect the District’s credit rating.

In order to achieve its credit rating objective, the District recognizes the need to integrate debt policy with its six-year capital improvements program and long-range financing plan. The District will also consider the debt marketing plans of other governmental units located within the District’s boundary as provided in Section 200.55 (7) of the Wisconsin Statutes.

The following objectives for the District’s capital improvement program and financing plan will be used to maintain debt service requirements at affordable levels and enhance the credit quality of the District:

� At least 25 percent of project expenditures shall be cash financed over the six-year financing plan. � Changes to the annual tax levy throughout the long-range plan shall be limited to amounts that are necessary,

affordable, and allow for tax levy stability into the future. � Responsible drawdown of accumulated reserve funds in a manner that does not cause destabilizing annual

fluctuations in the tax levy. � Flexibility to fund future expenditures necessary to fulfill the District’s responsibilities.

Approval of Sale: Commission approval of the debt sale shall comply with the affirmative vote requirements of Section 200.27 (2) of the Wisconsin Statutes and Commission Policy 1-15.02, “Capital Budget.”

Selection of Outside Financial Consultants: The Controller shall be responsible for establishing a solicitation and selection process for securing outside professional services necessary to develop and implement the District’s debt program. Selection of outside financial advisors, bond counsel, and underwriters and other service providers will comply with District procurement policies and state law. Section 200.57 (2) of the Wisconsin Statutes requires the Commission to attempt to ensure that 5 percent of the total funds expended for financial advisory services and investment analysis shall be expended for the services of minority financial advisors.

Refundings: Periodic reviews of outstanding debt will be undertaken to determine refunding opportunities. Refunding will be considered (within federal tax law constraints) if and when there is a net economic benefit of the refunding or the refunding is essential in order to update covenants essential to operations and management.

In general, advance refundings for economic savings will be considered when net present value savings of at least 2 percent of the refunded debt can be achieved. Current refundings that produce net present value savings of less than 2

percent will be considered on a case-by-case basis. Advance refundings with less than 2 percent savings may be considered when the Commission determines that there is a compelling public policy or long-range financing policy objective.

Prior 2015 Estimate

2016 Budget

2016 Proposed Capital Budget Line Item

Water Reclamation Facilities $190,788,507 $33,330,933 $30,175,037

Jones Island $127,244,239 $23,760,634 $18,570,616

Primary Treatment $42,314,594 $289,156 $145,525

J 01 006 JI Preliminary Facility Upgrade $22,434,595 $84,928 $0

J 01 008 Upgrade Primary Clarifier Mechanisms $4,759,901 $89,861 $132,922

J 01 009 ISS Pump Station Equipment Upgrade Phase II $14,661,301 $12,627 $0

J 01 013 Preliminary Facility Electrical Upgrade $0 $0 $0

J 01 015 JI Primary Clarifier Channel Improvements $418,222 $52,837 $5,373

J 01 016 Primary Effluent Division Chamber Sampler $40,575 $48,903 $7,230

Secondary Treatment $20,672,890 $2,664,056 $662,931

J 02 004 PACs Electrical Switch Gear $1,437,604 $162,750 $77

J 02 007 Secondary Clarifier Drive Replacement $12,414,233 $878,074 $163,857

J 02 008 JI Aeration System Enhancements $6,629,507 $1,340,935 $0

J 02 009 Conduit/Wiring Replacement for East Plant $191,546 $12,223 $25,846

J 02 011 Upgrade Secondary Clarifier Drain Valves $0 $0 $0

J 02 012 Aeration System Diffusers Replacement $0 $51,855 $104,545

J 02 013 East Plant RAS Header Replacement $0 $218,219 $368,606

Advanced Treatment $1,873,968 $1,082,928 $5,915

J 03 004 JI Effluent Pump Replacement $1,873,968 $1,082,928 $5,915

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast

Total Project Number

2021 Forecast


$45,795,574 $34,070,644 $44,285,525 $54,623,715 $537,228,703$49,410,036 $54,748,732

$26,417,206 $15,008,544 $5,679,311 $37,292,850 $271,215,010$9,203,282 $8,038,328

$264,341 $255,474 $218,550 $3,261,074 $49,111,769$620,504 $1,742,551

$0 $0 $0 $0 $22,519,523$0 J 01006$0

$105,373 $180,639 $3,775 $0 $5,272,471$0 J 01008$0

$0 $0 $0 $0 $14,673,928$0 J 01009$0

$0 $16,759 $214,775 $1,230,842 $3,825,431$620,504 J 01013$1,742,551

$158,968 $58,076 $0 $2,030,232 $2,723,708$0 J 01015$0

$0 $0 $0 $0 $96,708$0 J 01016$0

$1,099,705 $434,221 $1,816 $3,710,009 $29,635,399$71,135 $318,636

$0 $0 $0 $0 $1,600,431$0 J 02004$0

$0 $0 $0 $0 $13,456,164$0 J 02007$0

$0 $0 $0 $0 $7,970,442$0 J 02008$0

$0 $0 $0 $0 $229,615$0 J 02009$0

$0 $0 $0 $511,416 $574,527$0 J 02011$63,111

$0 $0 $0 $3,198,530 $3,681,365$71,022 J 02012$255,413

$1,099,705 $434,221 $1,816 $63 $2,122,855$113 J 02013$112

$116 $0 $0 $0 $2,962,927$0 $0

$116 $0 $0 $0 $2,962,927$0 J 03004$0

Prior 2015 Estimate

2016 Budget


Solids Processing $12,253,596 $3,239,585 $5,229,005

J 04 013 D&D VFD's Replacement $1,647,501 ($13,496) $0

J 04 017 Milorganite Dryer Improvements $2,732,909 $438,604 $194

J 04 018 Milorganite Facilities Improvement - Phase II $5,639,732 $13,584 $0

J 04 027 Milo Storage Transformer Replacement $312,846 $0 $0

J 04 029 E/B Tank Mixing Compressor Replacement $348,530 $274,833 $2,083

J 04 031 Biosolids/Energy Instrumentation Upgrade $617,866 $83,959 $0

J 04 032 Ferric Oxide System Improvements $0 $0 $0

J 04 033 D&D Drainage Piping & Quench Chambers Rehabilitation $57,287 $110,608 $694,219

J 04 035 Redundant Greens Grade Train $0 $0 $0

J 04 036 Main Recycle Screw Conveyor #1 Replacement $790,542 $494,806 $61

J 04 037 Wet Weather Gravity Belt Thickener $0 $79,192 $179,737

J 04 038 D&D Dryers Guillotine Gate Replacement $0 $0 $0

J 04 039 D&D Building Explosion Relief Panel Replacement $0 $85,706 $314,490

J 04 040 D&D Freight & Passenger Elevator Rehab $3,150 $95,098 $465,154

J 04 041 Milorganite Facilities Improvement - Phase III $38,749 $383,550 $1,236,296

J 04 043 Replace Wet Recycle Screws 1 & 2 $64,484 $1,193,141 $773,966

J 04 046 D&D Energy Conservation Efforts $0 $0 $847,467

J 04 047 Install Winches at Chaff Load out Bay $0 $0 $171,283

J 04 050 Dryer Feed and Discharge Screw Replacement $0 $0 $133,762

J 04 051 MRAB Feed Screw Replacements $0 $0 $147,052

J 04 052 1st Stage Classification Equipment Replacements $0 $0 $102,790

J 04 053 Silo Bucket Elevator Replacements $0 $0 $61,997

J 04 054 Silo Load out Equipment Replacements $0 $0 $48,451

J 04 055 ASU #32 Replacment - MCRR 852 $0 $0 $50,003

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$13,542,809 $3,397,911 $1,710,959 $3,988,954 $43,988,758$211,193 $414,746

$0 $0 $0 $0 $1,634,005$0 J 04013$0

$0 $0 $0 $0 $3,171,707$0 J 04017$0

$0 $0 $0 $0 $5,653,316$0 J 04018$0

$0 $0 $0 $0 $312,846$0 J 04027$0

$0 $0 $0 $0 $625,446$0 J 04029$0

$0 $0 $0 $0 $701,825$0 J 04031$0

$0 $0 $0 $1,643,073 $1,643,073$0 J 04032$0

$1,307,665 $28,223 $0 $0 $2,198,002$0 J 04033$0

$0 $0 $0 $345,698 $365,351$0 J 04035$19,653

$0 $0 $0 $0 $1,285,409$0 J 04036$0

$680,448 $173,307 $0 $0 $1,112,684$0 J 04037$0

$0 $0 $0 $2,000,183 $2,493,635$98,359 J 04038$395,093

$2,399,452 $147,466 $157 $0 $2,947,271$0 J 04039$0

$1,234,091 $5,752 $0 $0 $1,803,245$0 J 04040$0

$4,924,875 $63,255 $0 $0 $6,646,725$0 J 04041$0

$0 $0 $0 $0 $2,031,591$0 J 04043$0

$928,055 $0 $0 $0 $1,775,522$0 J 04046$0

$95,167 $0 $0 $0 $266,450$0 J 04047$0

$463,064 $1,429,480 $1,335,431 $0 $3,470,917$109,180 J 04050$0

$604,162 $4,017 $0 $0 $755,231$0 J 04051$0

$247,087 $518,625 $370,048 $0 $1,242,204$3,654 J 04052$0

$232,686 $603,681 $4,950 $0 $903,314$0 J 04053$0

$219,014 $215,936 $0 $0 $483,401$0 J 04054$0

$207,043 $208,169 $373 $0 $465,588$0 J 04055$0

Prior 2015 Estimate

2016 Budget


General Jones Island $50,129,191 $16,484,909 $12,527,240

J 04 056 D&D Main Recycle Bin & Equipment Venting $0 $0 $100,182

J 06 002 Sitework Phase III, West Package (J009) $239,782 $100,000 $0

J 06 022 Site Settlement $223,840 $851,773 $674,332

J 06 026 JI Site Lighting Upgrade $0 $34,729 $45,337

J 06 032 JI Geotechnical Structural Analysis $0 $125,039 $453,462

J 06 034 Head Tank Wall Extension $625,828 $377,783 $1,703,436

J 06 035 VFD Upgrade Phase 3 $1,022,791 $39,982 $0

J 06 037 Gas Turbine Replacement $43,594,184 $272,476 $3,086

J 06 044 W3 & W4 Water Strainer Improvements $432,927 $260,776 $285

J 06 045 HVAC for Computer Room in Ops Building $17,332 $38,657 $92,342

J 06 047 Implementation of Safety Recommendations $123,799 $270,838 $2,850

J 06 049 JI Field Operations Building Rehab (#278) $140,504 $547,253 $1,327

J 06 050 JI I&C Improvements $141,934 $639,682 $653,261

J 06 051 JI Building Roof Replacement $342,200 $5,538,703 $2,096

J 06 052 Building Piping Inventory & Rehabilitation $11,032 $2,738 $15,111

J 06 054 ISS Crane and Tunnel Fan Rehabilitation $40,341 $170,831 $664,069

J 06 055 Alternative Power Feed to Operations Building $12,083 $54,655 $129,929

J 06 056 Turbine Extended Service Agreement $1,552,732 $1,252,019 $1,326,065

J 06 057 VFD's for RAS WP, Service Water & WAS Receiving $601,477 $1,040,572 $308,798

J 06 058 JI Building Roof Replacement - Phase II $34,360 $356,385 $2,106,930

J 06 059 Gas Turbine Replacement - Phase II $0 $0 $0

J 06 060 Head Tank System Improvements $0 $0 $0

J 06 061 Duct Burner/Dryer Conversion for Additional LFG $94,288 $382,894 $564,789

J 06 062 Re-Commission GE Turbine #2 $0 $6,533 $129,884

J 06 063 Tunnel & Gallery System Hazardous Rating Improvements $0 $0 $6,967

J 06 064 Gaseous Fire Suppression Systems $474 $107,131 $489,352

J 06 065 Rolling Stock & Other Equipment $779,148 $3,357,356 $2,175,440

J 06 066 JI Power Supply Optimization $98,135 $56,104 $135,409

J 06 068 JI & SS Network Optimizations $0 $0 $0

J 06 069 JI Building Roof Replacement - Phase II $0 $0 $0

J 06 070 D&D Lighting Upgrade $0 $0 $142,501

J 99 003 Operator Contribution to CIP $0 $600,000 $600,000

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$11,510,235 $10,920,938 $3,747,986 $26,332,813 $145,516,157$8,300,450 $5,562,395

$248,790 $40,250 $6,248 $0 $395,470$0 J 04056$0

$0 $0 $0 $1,882,189 $2,221,971$0 J 06002$0

$1,509 $0 $0 $0 $1,751,454$0 J 06022$0

$85,833 $497,964 $0 $0 $663,863$0 J 06026$0

$0 $0 $0 $0 $578,501$0 J 06032$0

$520,661 $3,733 $0 $0 $3,231,441$0 J 06034$0

$0 $0 $0 $0 $1,062,773$0 J 06035$0

$0 $0 $0 $0 $43,869,746$0 J 06037$0

$0 $0 $0 $0 $693,988$0 J 06044$0

$0 $0 $0 $0 $148,331$0 J 06045$0

$0 $0 $0 $0 $397,487$0 J 06047$0

$1,321 $1,031 $0 $0 $691,436$0 J 06049$0

$123,551 $187,652 $800 $0 $1,747,325$445 J 06050$0

$0 $0 $0 $0 $5,882,999$0 J 06051$0

$28,136 $106,294 $134,131 $207,285 $1,731,390$521,326 J 06052$705,337

$828,644 $7,097 $0 $0 $1,710,982$0 J 06054$0

$0 $0 $0 $0 $196,667$0 J 06055$0

$1,404,554 $1,487,752 $1,575,942 $3,437,829 $15,474,831$1,669,424 J 06056$1,768,514

$0 $0 $0 $0 $1,950,847$0 J 06057$0

$3,656,259 $2,139 $0 $0 $6,156,073$0 J 06058$0

$0 $0 $0 $17,992,744 $17,992,744$0 J 06059$0

$0 $30,136 $165,349 $2,806,332 $3,491,865$197,473 J 06060$292,575

$803,047 $4,985,644 $40,929 $0 $6,871,591$0 J 06061$0

$181,693 $0 $0 $0 $318,110$0 J 06062$0

$289,968 $257 $0 $0 $297,192$0 J 06063$0

$229,543 $2,184 $0 $0 $828,684$0 J 06064$0

$1,739,405 $1,574,827 $1,508,348 $0 $14,142,176$1,503,858 J 06065$1,503,794

$125,834 $358,254 $33,431 $0 $807,167$0 J 06066$0

$563,721 $800 $800 $6,434 $573,356$804 J 06068$797

$0 $112,911 $279,090 $0 $6,090,451$4,407,072 J 06069$1,291,378

$77,766 $922,013 $2,918 $0 $1,145,246$48 J 06070$0

$600,000 $600,000 $0 $0 $2,400,000$0 J 99003$0

Prior 2015 Estimate

2016 Budget


South Shore $22,613,321 $6,764,023 $10,020,679

Primary Treatment $126,745 $226,595 $874,067

S 01 008 Influent Bar Screen Improvements $5,219 $0 $0

S 01 009 Scum System Improvements $1,892 $33,880 $153,701

S 01 010 Influent Channel Sampler $119,634 $170,738 $497,384

S 01 012 SS Influent Odor Control System $0 $21,977 $222,982

Secondary Treatment $15,709,920 $1,846,906 $1,298,234

S 02 005 Secondary Clarifier Upgrade $11,206,772 $131,341 $180,116

S 02 007 SS Increase Capacity Demo $1,581,082 $99,497 $393

S 02 008 SS Capacity Improvements $904,527 $712,568 $363,309

S 02 009 SS Aeration Control System Upgrade $1,687,849 $6,349 $0

S 02 010 RAS VFD Replacements $296,657 $747,577 $255,245

S 02 012 Collaborative Biological Phosphorus Removal $33,033 $74,779 $230,933

S 02 013 Aeration Galleries RAS Header Piping Rehab $0 $61,066 $268,238

S 02 014 Secondary Clarifier Idling Control $0 $13,729 $0

Advanced Treatment $0 $0 $0

S 03 002 SS Chloramination $0 $0 $0

Solids Processing $5,149,890 $755,095 $2,495,394

S 04 010 Thickening Process Capacity Enhancements $71,866 $78,408 $141,517

S 04 012 Plate and Frame Press Upgrade $292 $0 $0

S 04 020 Digester Mixing and Piping Replacement $4,865,147 $249,853 $534,661

S 04 022 RAS Chlorination Improvements $212,585 $32,089 $0

S 04 023 Aeration Basin Concrete Rehab - Phase II $0 $99,200 $1,053,444

S 04 024 Digester Gallery Piping Rehab $0 $16,037 $152,185

S 04 025 HW Boiler Control Systems Improvements $0 $83,098 $323,126

S 04 027 WAS Digesting Study $0 $131,392 $0

S 04 028 Remove Mowable Sod Covering at Digesters $0 $0 $16,000

S 04 029 Digester Mixing II $0 $0 $0

S 04 030 Aeration Basin Concrete Rehab - Phase III $0 $65,018 $202,642

S 04 031 Digester Gas Treatment System $0 $0 $71,819

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$15,703,399 $14,637,950 $10,623,892 $17,110,966 $120,495,762$10,939,497 $12,082,035

$55,848 $0 $11,318 $3,060,841 $4,692,188$164,645 $172,129

$0 $0 $11,318 $1,426,330 $1,779,641$164,645 S 01008$172,129

$1,410 $0 $0 $1,634,511 $1,825,394$0 S 01009$0

$10,661 $0 $0 $0 $798,417$0 S 01010$0

$43,777 $0 $0 $0 $288,736$0 S 01012$0

$2,715,158 $5,888,346 $4,022,543 $22,652 $36,040,846$2,661,000 $1,876,087

$175,151 $250,419 $210 $941 $11,945,370$211 S 02005$209

$0 $0 $0 $0 $1,680,972$0 S 02007$0

$465,250 $2,181,522 $2,646,475 $21,711 $11,828,013$2,657,018 S 02008$1,875,633

$0 $0 $0 $0 $1,694,198$0 S 02009$0

$1,656 $0 $0 $0 $1,301,135$0 S 02010$0

$502,295 $1,967,259 $1,012,217 $0 $3,820,516$0 S 02012$0

$1,398,027 $1,386,647 $6,429 $0 $3,120,407$0 S 02013$0

$172,779 $102,499 $357,212 $0 $650,235$3,771 S 02014$245

$0 $0 $0 $536,909 $652,538$9,139 $106,490

$0 $0 $0 $536,909 $652,538$9,139 S 03002$106,490

$3,222,262 $3,072,778 $4,580,600 $6,286,039 $35,870,356$4,617,365 $5,690,933

$0 $0 $152,029 $265,919 $2,794,976$356,065 S 04010$1,729,172

$0 $204,499 $678,395 $1,632,170 $5,983,388$1,530,965 S 04012$1,937,067

$2,013 $0 $0 $0 $5,651,674$0 S 04020$0

$0 $0 $0 $0 $244,674$0 S 04022$0

$1,908,399 $2,040 $0 $0 $3,063,083$0 S 04023$0

$4,833 $0 $367,400 $4,061,015 $5,201,382$577,152 S 04024$22,760

$42,050 $0 $0 $0 $448,274$0 S 04025$0

$0 $0 $0 $0 $131,392$0 S 04027$0

$0 $0 $0 $267,399 $283,399$0 S 04028$0

$0 $0 $304,959 $59,536 $4,181,507$1,815,078 S 04029$2,001,934

$1,111,447 $2,559,578 $2,531,431 $0 $6,475,708$5,592 S 04030$0

$153,520 $306,661 $546,386 $0 $1,410,899$332,513 S 04031$0

Prior 2015 Estimate

2016 Budget


General South Shore $1,626,766 $3,935,427 $5,352,984

S 06 009 Roadways and Walkways $6 $111,746 $263,313

S 06 010 SS Site Lighting Upgrade $9,759 $114,142 $90,109

S 06 015 SS Geotechnical Structural Analysis $0 $17,663 $138,679

S 06 019 Replace W3 Flushing Water Pumps $17,659 $104,654 $280,984

S 06 022 Building 326 Site Improvements $11,520 $79,920 $54,186

S 06 023 SS Drainage Channel Improvements $66,513 $293,786 $5,363

S 06 024 SS Building Roof Replacement $270,306 $1,156,269 $356

S 06 026 SS Building Roof Replacement - Phase II $31,627 $305,632 $1,254,883

S 06 027 Tunnels Concrete Rehabilitation $1,452 $42,376 $128,820

S 06 028 Central Control Building H2S Removal System $0 $21,794 $161,656

S 06 029 Med Voltage Switchgear Replacement $0 $165,840 $837,121

S 06 030 Roadways and Walkways - Phase II $0 $0 $0

S 06 032 SS Rolling Stock & Other Equipment $1,217,924 $1,204,017 $1,542,884

S 06 033 Upgrade Medium & Low Voltage MCC's $0 $17,588 $294,630

S 06 034 Building Roof Replacement Phase III $0 $0 $0

S 99 003 Operator Contribution to CIP $0 $300,000 $300,000

Interplant Pipeline $40,930,947 $2,806,276 $1,583,742

Interplant Pipeline $1,380,923 $1,264,418 $1,472,313

P 01 003 Interplant Pipeline Improvements at South Shore $1,380,923 $1,235,407 $340,475

P 01 005 Interplant Pipeline Improvements - Phase II $0 $29,011 $1,131,838

Energy Pipeline $39,550,024 $1,541,858 $111,429

P 02 001 Landfill Gas Pipeline $29,513,778 $0 $0

P 02 002 West Shore Pipeline $10,036,246 $1,541,858 $0

P 02 003 LFG Pipeline Pigging Station $0 $0 $111,429

General Reclamation Facility Projects $0 $0 $0

Allowance for Plant Rehabilitation $0 $0 $0

J 99 001 Allowance for Plant Rehabilitation $0 $0 $0

J 99 004 Allowance for D&D Rehabilitation $0 $0 $0

J 99 006 NFPA 820 Compliance Allowance $0 $0 $0

S 99 001 Allowance for Plant Rehabilitation $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$9,710,131 $5,676,826 $2,009,431 $7,204,525 $43,239,834$3,487,348 $4,236,396

$144,071 $0 $0 $0 $519,136$0 S 06009$0

$151,796 $347,824 $0 $0 $713,630$0 S 06010$0

$158,042 $158,675 $71,393 $0 $544,452$0 S 06015$0

$529,389 $3,064 $0 $0 $935,750$0 S 06019$0

$162,328 $602,021 $4,696 $0 $914,671$0 S 06022$0

$0 $0 $0 $0 $365,662$0 S 06023$0

$0 $0 $0 $0 $1,426,931$0 S 06024$0

$2,089,248 $2,252 $0 $0 $3,683,642$0 S 06026$0

$422,142 $889,983 $30,988 $4,194 $1,537,499$8,807 S 06027$8,737

$394,406 $10,444 $0 $0 $588,300$0 S 06028$0

$2,030,419 $7,275 $0 $0 $3,040,655$0 S 06029$0

$0 $0 $20,141 $7,166,338 $8,649,205$712,426 S 06030$750,300

$1,516,717 $1,500,000 $1,500,000 $0 $11,481,542$1,500,000 S 06032$1,500,000

$1,811,573 $1,845,219 $358,596 $0 $4,327,606$0 S 06033$0

$0 $10,069 $23,617 $33,993 $3,311,153$1,266,115 S 06034$1,977,359

$300,000 $300,000 $0 $0 $1,200,000$0 S 99003$0

$2,771,131 $3,097,147 $2,929,509 $219,899 $58,549,813$2,921,189 $1,289,973

$2,716,581 $3,018,933 $2,916,117 $0 $16,528,767$2,823,629 $935,853

$670,021 $2,925 $0 $0 $3,629,751$0 P 01003$0

$2,046,560 $3,016,008 $2,916,117 $0 $12,899,016$2,823,629 P 01005$935,853

$54,550 $78,214 $13,392 $219,899 $42,021,046$97,560 $354,120

$0 $0 $0 $0 $29,513,778$0 P 02001$0

$0 $0 $0 $0 $11,578,104$0 P 02002$0

$54,550 $78,214 $13,392 $219,899 $929,164$97,560 P 02003$354,120

$10,000 $10,000 $22,510,000 $0 $73,330,000$22,600,000 $28,200,000

$10,000 $10,000 $22,510,000 $0 $73,330,000$22,600,000 $28,200,000

$0 $0 $7,500,000 $0 $15,000,000$7,500,000 J 99001$0

$0 $0 $7,500,000 $0 $29,000,000$7,500,000 J 99004$14,000,000

$10,000 $10,000 $10,000 $0 $330,000$100,000 J 99006$200,000

$0 $0 $7,500,000 $0 $29,000,000$7,500,000 S 99001$14,000,000

Prior 2015 Estimate

2016 Budget


General Reclamation Facility Projects $0 $0 $0

Inflation $0 $0 $0

J 99 005 J Inflation $0 $0 $0

S 99 004 S Inflation $0 $0 $0

Inflation $0 $0 $0

P 99 002 P Inflation $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$893,838 $1,317,003 $2,542,813 $0 $13,638,118$3,746,068 $5,138,396

$838,674 $1,192,469 $2,364,358 $0 $12,906,715$3,506,427 $5,004,787

$526,074 $603,886 $1,260,317 $0 $6,687,347$1,993,733 J 99005$2,303,337

$312,600 $588,583 $1,104,041 $0 $6,219,368$1,512,694 S 99004$2,701,450

$55,164 $124,534 $178,455 $0 $731,403$239,641 $133,609

$55,164 $124,534 $178,455 $0 $731,403$239,641 P 99002$133,609

Prior 2015 Estimate

2016 Budget


Conveyance $162,268,488 $11,960,666 $10,615,031

Metropolitan Interceptor Sewer $128,680,437 $9,624,739 $4,967,868

Subsystem 2- Soutwest Branch $943,559 $1,271,235 $477,464

C 02 008 Force Main Rehabilitations $923,123 $1,271,235 $477,464

C 02 009 Franklin/Muskego Gravity MIS Chemical Addition $20,436 $0 $0

Subsystem 3 - Northwest Branch $7,182,256 $2,982,662 $464,037

C 03 008 Underwood Creek Force Main Rehab $6,947,516 $2,549,134 $0

C 03 009 107th St. MIS Improvement $86,719 $404,135 $447,911

C 03 011 Wisconsin Ave MIS Rehab - Phase II $0 $0 $0

C 03 012 ZIC MIS Lining & Manhole Reconfiguration $148,021 $29,393 $16,126

Subsystem 4 - Northeast Branch $19,232,737 $1,475,249 $328,882

C 04 002 Honey Creek MIS Rehab $78,085 $0 $0

C 04 003 Roosevelt Drive MIS Rehab $0 $0 $0

C 04 004 State Street & Menomonee River MIS Rehab $0 $0 $0

C 04 005 Martha Washington/Highlands MIS Rehab $147,912 $0 $0

C 04 006 Pump Station Addition to Combined Sewer Overflow $16,865,608 $171 $0

C 04 007 Vliet Street/100 Street MIS Rehabilitation $2,141,132 $1,475,078 $0

C 04 010 Mill/Green Bay/Green Tree MIS Relief $0 $0 $328,882

Subsystem 5 - North Side High Relief $2,411,972 $106,414 $165,636

C 05 041 CMIS - Auer to Hampton Phase II: H (C016) $2,411,972 $106,414 $165,636

C 05 044 Estabrook Park MIS Rehab $0 $0 $0

C 05 050 Port Rd Pump Stations Grinders $0 $0 $0

Subsystem 6 - South Side High Relief $574,183 $1,102,948 $224,895

C 06 017 South 6th Street & Warnimont MIS Rehab $0 $0 $0

C 06 018 Oklahoma Ave MIS Rehab $0 $0 $0

C 06 019 Burnham St. 52nd to Electric Ave MIS Rehab $496,544 $782,451 $0

C 06 021 S. 27th Howard to Euclid MIS Rehab $77,639 $320,497 $224,895

Subsystem 7 - Low Level $88,155,103 $83,606 $22,351

C 07 010 CMIS - Harbor Siphons [HS]: A, B, D, E, G, & H $45,077,432 $12,522 $0

C 07 011 CMIS - Rehab/Replace St Paul/Emmber/Mt. Venon MIS: D (C017) $1,696,553 $0 $0

C 07 022 CMIS - Canal St Wet Weather MIS Relief: D (C017) $40,271,055 $50,957 $0

C 07 029 CMIS - Rehab/Replace MIS - Falk Property: D (C017) $950,816 $0 $0

C 07 034 Menomonee River MIS Rehab $159,247 $20,127 $22,351

C 07 035 Mitchell Park PCB Sewer Improvements $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$11,408,211 $18,427,846 $26,362,108 $88,177,387 $397,472,977$33,403,627 $34,849,613

$6,979,789 $15,797,841 $15,321,910 $88,177,387 $323,618,581$22,555,086 $31,513,524

$241,107 $1,879,830 $1,990,535 $487,298 $9,254,496$1,681,782 $281,686

$241,107 $1,879,830 $1,990,535 $0 $8,416,059$1,632,765 C 02008$0

$0 $0 $0 $487,298 $838,437$49,017 C 02009$281,686

$800,193 $10,734,860 $395,252 $0 $24,864,861$1,630,579 $675,022

$0 $0 $0 $0 $9,496,650$0 C 03008$0

$800,193 $10,734,860 $49,167 $0 $12,522,985$0 C 03009$0

$0 $0 $335,519 $0 $1,731,931$1,011,278 C 03011$385,134

$0 $0 $10,566 $0 $1,113,295$619,301 C 03012$289,888

$912,186 $1,462,272 $3,798,321 $41,702,453 $106,419,908$10,720,164 $26,787,644

$0 $0 $183,839 $413 $2,951,906$401,993 C 04002$2,287,576

$0 $0 $0 $6,298,805 $6,452,544$0 C 04003$153,739

$0 $0 $0 $16,188,278 $16,607,929$0 C 04004$419,651

$0 $0 $0 $4,239,686 $4,512,327$0 C 04005$124,729

$0 $0 $0 $0 $16,865,779$0 C 04006$0

$0 $0 $0 $0 $3,616,210$0 C 04007$0

$912,186 $1,462,272 $3,614,482 $14,975,271 $55,413,213$10,318,171 C 04010$23,801,949

$71,291 $0 $422,299 $14,720,562 $19,165,584$311,840 $955,570

$71,291 $0 $422,299 $3,878,245 $8,068,663$311,840 C 05041$700,966

$0 $0 $0 $9,454,925 $9,619,180$0 C 05044$164,255

$0 $0 $0 $1,387,392 $1,477,741$0 C 05050$90,349

$0 $0 $1,913,525 $27,407,107 $33,726,037$2,500,121 $3,258

$0 $0 $0 $18,720,888 $18,720,888$0 C 06017$0

$0 $0 $0 $8,686,219 $8,686,219$0 C 06018$0

$0 $0 $0 $0 $1,278,995$0 C 06019$0

$0 $0 $1,913,525 $0 $5,039,935$2,500,121 C 06021$3,258

$0 $0 $0 $3,360,098 $92,052,854$74,619 $357,077

$0 $0 $0 $0 $45,089,954$0 C 07010$0

$0 $0 $0 $0 $1,696,553$0 C 07011$0

$0 $0 $0 $0 $40,322,012$0 C 07022$0

$0 $0 $0 $0 $950,816$0 C 07029$0

$0 $0 $0 $0 $201,725$0 C 07034$0

$0 $0 $0 $3,360,098 $3,791,794$74,619 C 07035$357,077

Prior 2015 Estimate

2016 Budget


General Interceptor Sewer System $10,180,627 $2,602,625 $3,284,603

C 98 041 Conveyance Pump Station Upgrade Phase II $5,193,712 $44,679 $0

C 98 042 SS Force Main Drainage Station Rehab $771,209 $139,919 $0

C 98 044 MIS Abandonment $22,251 $142,351 $130,118

C 98 045 Conveyance Gate Rehab $3,288,289 $1,768,585 $1,498,947

C 98 047 Access Hatch Covers $523,910 $206,961 $207,382

C 98 048 Gravity Overflow Conversion to Pump Overflow $57,936 $0 $33,645

C 98 050 Port Washington Road Pump Station - Odor Control $321,524 $22,561 $0

C 98 051 Conveyance Gate Rehab, Phase 3 $1,796 $193,178 $721,411

C 98 052 Miscellaneous Sewer Rehab $0 $51,964 $299,024

C 98 053 Conveyance Gate Rehab, Phase 4 $0 $32,427 $394,076

Inline Storage System $141,902 $235,370 $716,771

CSO Structures $141,902 $235,370 $716,771

I 03 003 CSO Rehab - Hawley Rd (C001) $137,446 $176,627 $564,004

I 03 008 CSO102 Rehabilitation - Humbolt $4,456 $58,743 $0

I 06 001 NS12 Collector System Improvements $0 $0 $152,767

General Contol System $21,588,612 $1,725,870 $3,020,691

Conveyance System Central Control $21,588,612 $1,725,870 $3,020,691

K 01 004 Comprehensive Modeling and Real Time Control Strategies $5,317,041 $12,294 $0

K 01 008 SCADA Back-up Communication Systems $584,711 $89,476 $92,714

K 01 010 Wet Weather Peak Flow Measurement System $15,534,670 $513,541 $0

K 01 012 Conveyance SCADA Upgrade $80,102 $598,664 $2,513,795

K 01 013 Replace Level Sensors in ISS Structures $72,088 $380,391 $106,168

K 01 014 Replace Level Sensors in ISS Structures-Phase II $0 $131,504 $308,014

General Conveyance $11,857,537 $374,687 $1,909,701

General Conveyance $11,857,537 $374,687 $1,909,701

C 99 002 Operator Contribution to CIP $0 $201,606 $201,606

C 99 003 C Inflation $0 $0 $0

C 99 004 Allowance for DOT Reimbursements $0 $1,128,235

I 98 001 Allowance for Closeout $11,857,537 $173,081 $579,860

General Interceptor Sewer System $0 $0 $0

C 99 001 Allowance for Future Conveyance Rehab Projects $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$4,955,012 $1,720,879 $6,801,978 $499,869 $38,134,841$5,635,981 $2,453,267

$0 $0 $0 $0 $5,238,391$0 C 98041$0

$0 $0 $0 $0 $911,128$0 C 98042$0

$129,764 $164,918 $415,001 $0 $1,649,602$644,962 C 98044$237

$0 $0 $0 $0 $6,555,821$0 C 98045$0

$199,659 $200,800 $199,879 $0 $1,823,511$200,458 C 98047$84,462

$178,538 $100,358 $695,119 $499,869 $6,321,549$2,387,516 C 98048$2,368,568

$0 $0 $0 $0 $344,085$0 C 98050$0

$2,143,647 $15,107 $0 $0 $3,075,139$0 C 98051$0

$399,536 $249,679 $5,491,979 $0 $8,895,227$2,403,045 C 98052$0

$1,903,868 $990,017 $0 $0 $3,320,388$0 C 98053$0

$277,670 $1,689,336 $2,026,522 $0 $5,968,893$816,014 $65,308

$277,670 $1,689,336 $2,026,522 $0 $5,968,893$816,014 $65,308

$4,047 $0 $0 $0 $882,124$0 I 03003$0

$0 $0 $195,232 $0 $1,139,753$816,014 I 03008$65,308

$273,623 $1,689,336 $1,831,290 $0 $3,947,016$0 I 06001$0

$3,727,308 $34,739 $0 $0 $30,097,220$0 $0

$3,727,308 $34,739 $0 $0 $30,097,220$0 $0

$0 $0 $0 $0 $5,329,335$0 K 01004$0

$0 $0 $0 $0 $766,901$0 K 01008$0

$0 $0 $0 $0 $16,048,211$0 K 01010$0

$3,497,627 $34,739 $0 $0 $6,724,927$0 K 01012$0

$5,219 $0 $0 $0 $563,866$0 K 01013$0

$224,462 $0 $0 $0 $663,980$0 K 01014$0

$423,444 $905,930 $9,013,676 $0 $37,788,283$10,032,527 $3,270,781

$423,444 $905,930 $1,513,676 $0 $22,788,283$2,532,527 $3,270,781

$200,778 $193,600 $0 $0 $797,590$0 C 99002$0

$222,666 $712,330 $1,513,676 $0 $8,251,980$2,532,527 C 99003$3,270,781

$0 $0 $0 $0 $1,128,235$0 C 99004$0

$0 $0 $0 $0 $12,610,478$0 I 98001$0

$0 $0 $7,500,000 $0 $15,000,000$7,500,000 $0

$0 $0 $7,500,000 $0 $15,000,000$7,500,000 C 99001$0

Prior 2015 Estimate

2016 Budget


Watercourse and Flood Management $199,888,175 $18,262,911 $24,493,494

Milwaukee River Watershed $8,928,775 $1,863,513 $9,203,585

Milwaukee River $1,383,560 $1,837,590 $9,203,585

W 10 001 Milwaukee River Flood Mgt $163,781 $76,831 $155,521

W 11 030 30th Street Corridor Wet Weather Relief $1,219,779 $1,760,759 $9,048,064

Southbranch Creek $341,809 $317 $0

W 12 004 Southbranch - Bradely Road Detention Basin Imprv $341,809 $317 $0

Indian Creek $7,203,406 $25,606 $0

W 13 001 Indian Creek (W020) Flood Management $7,203,406 $25,606 $0

Menomonee River Watershed $151,698,339 $11,591,892 $6,277,165

Menomonee River - Main Stem $146,321,021 $5,119,513 $1,842,728

W 20 003 Lower Wauwatosa Flood Control & Restoration Floodproofing - $47,846,035 $978,699 $0

W 20 004 Milwaukee County Grounds (W017) Detention Basins $89,573,153 $11,237 $36,025

W 20 018 Concordia Avenue $138,840 $496,619 $83,864

W 20 020 Menomonee Valley Flood Mgt (Falk) $291,917 $170,726 $515,370

W 20 021 Menomonee River Stream Management - CR $4,959,889 $940,693 $9,819

W 20 023 Phase II Menomonee River Stream Mgt $2,605,759 $357,103 $168,353

W 20 025 Removal of 5 Low Gradient Barriers $200,102 $512,268 $835,343

W 20 027 Western Milwaukee Phase 2A $670,719 $1,591,911 $115,003

W 20 028 Western Milwaukee Phase 2B $0 $0 $0

W 20 029 Western Milwaukee Real Estate & Environmental Assessment $34,607 $60,257 $20,217

W 20 031 Memonomee River Estuary Study $0 $0 $58,734

Underwood Creek $4,785,898 $335,154 $3,729,670

W 21 005 Phase I - Underwood Creek Reach 1 - CR $4,286,088 $58,214 $43,281

W 21 006 Phase II - Underwood Creek Reach 1, Phase II - CR $498,663 $227,653 $3,206,156

W 21 007 Underwood Creek Reach 2 - CR $789 $8,088 $322,298

W 21 008 Underwood Creek Reach 1 Phase II Wetland $358 $41,199 $157,935

South Branch Underwood Creek $0 $0 $0

W 22 001 Underwood Creek S. Branch, Reach 1 - CR $0 $0 $0

W 22 002 Underwood Creek S. Branch, Reach 2 - CR $0 $0 $0

Little Menomonee River $414,375 $30,000 $0

W 23 002 Little Menomonee Wetland Restoration $414,375 $30,000 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$14,043,838 $8,542,391 $10,265,905 $406,392,208 $708,308,578$12,678,472 $13,741,184

$1,508,575 $1,495,530 $3,059,323 $71,160,080 $101,345,467$4,059,559 $66,527

$1,508,575 $1,495,530 $3,059,323 $71,160,080 $93,774,329$4,059,559 $66,527

$154,902 $154,373 $0 $43,794,593 $44,500,001$0 W10001$0

$1,353,673 $1,341,157 $3,059,323 $27,365,487 $49,274,328$4,059,559 W11030$66,527

$0 $0 $0 $0 $342,126$0 $0

$0 $0 $0 $0 $342,126$0 W12004$0

$0 $0 $0 $0 $7,229,012$0 $0

$0 $0 $0 $0 $7,229,012$0 W13001$0

$1,275,676 $1,024,649 $921,146 $202,586,654 $377,170,252$1,684,248 $110,483

$251,551 $442,545 $377,376 $30,664,997 $186,603,769$1,539,008 $45,030

$0 $0 $0 $0 $48,824,734$0 W20003$0

$0 $0 $0 $0 $89,620,415$0 W20004$0

$0 $0 $0 $4,142,678 $4,862,001$0 W20018$0

$2,906 $0 $0 $0 $980,919$0 W20020$0

$9,780 $9,819 $0 $0 $5,930,000$0 W20021$0

$34,324 $34,461 $0 $0 $3,200,000$0 W20023$0

$0 $0 $0 $0 $1,547,713$0 W20025$0

$14,093 $6,669 $6,669 $0 $2,414,309$6,696 W20027$2,549

$0 $0 $34,954 $20,628,678 $21,746,671$1,070,838 W20028$12,201

$184,183 $391,596 $335,753 $5,893,641 $7,412,008$461,474 W20029$30,280

$6,265 $0 $0 $0 $64,999$0 W20031$0

$856,579 $117,935 $78,335 $21,948,266 $31,921,948$35,195 $34,916

$43,108 $43,281 $43,281 $0 $4,517,253$0 W21005$0

$47,269 $22,726 $22,726 $6,510,643 $10,581,289$22,817 W21006$22,636

$8,155 $8,187 $8,187 $15,432,053 $15,804,132$8,220 W21007$8,155

$758,047 $43,741 $4,141 $5,570 $1,019,274$4,158 W21008$4,125

$0 $0 $0 $19,855,301 $19,855,301$0 $0

$0 $0 $0 $11,980,996 $11,980,996$0 W22001$0

$0 $0 $0 $7,874,305 $7,874,305$0 W22002$0

$15,000 $0 $0 $0 $459,375$0 $0

$15,000 $0 $0 $0 $459,375$0 W23002$0

Prior 2015 Estimate

2016 Budget


Honey Creek $106,093 $315,637 $135,081

W 24 002 Honey Creek Reach 6 - CR $0 $0 $0



W 24 005 Honey Creek SEWRPC Feasibility Study $106,093 $27,855 $109,952

W 24 006 Honey Creek USACE Habitat Improvement Feasibility Study $0 $287,782 $25,129


Woods Creek $0 $0 $0

W 25 001 Woods Creek Reach 1 - CR $0 $0 $0

Grantosa Creek $70,952 $5,791,588 $569,686

W 26 004 Grantosa Parkway $29,333 $44,129 $96

W 28 001 Schoonmaker Creek $41,619 $124,994 $176,507

W 28 002 Daylighting Schoonmaker Creek $0 $5,622,465 $393,083

Root River Watershed $58,623 $346,387 $0

Root River $58,623 $346,387 $0

W 33 002 N. Branch Root River Watercourse Management Plan $0 $0 $0

W 34 001 W. Branch Root River Flood Management $2,317 $346,387 $0

W 35 002 Lower Whitnall Park Creek Flood Mgt $56,306 $0 $0

Kinnickinnic River Watershed $21,947,717 $2,117,591 $3,366,538

Kinnickinnic River $20,774,016 $2,051,036 $2,732,510

W 40 002 KK River Flood Management - Mainstem Work (W026) - CR $14,947,552 $1,707,616 $2,242,886

W 40 007 KK River Reach 3 - CR $148,489 $46,076 $128,560

W 40 008 KK River S. 6th to S. Chase Flood Mgt $5,677,975 $100,425 $23,787

W 40 009 43rd Street Ditch Reach 1 - CR $0 $0 $0

W 40 010 KK River Watershed $0 $0 $223,010

W 40 011 KK River Feasibility Study $0 $196,919 $114,267

Lyons Creek $310,145 $19,701 $0

W 41 001 KK River Flood Management - Lyons Creek (W026) $310,145 $19,701 $0

43rd Street Ditch Creek $0 $0 $0

W 42 003 43rd Street Ditch Reach 1 - CR $0 $0 $0

Villa Mann Creek $66,981 $0 $0

W 43 001 KK River Flood Management - Villa Mann Creek (W026) $66,981 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$7,635 $0 $0 $48,568,735 $49,133,181$0 $0

$0 $0 $0 $11,364,323 $11,364,323$0 W24002$0

$0 $0 $0 $13,259,662 $13,259,662$0 W24003$0

$0 $0 $0 $10,893,525 $10,893,525$0 W24004$0

$0 $0 $0 $125,591 $369,491$0 W24005$0

$7,635 $0 $0 $0 $320,546$0 W24006$0

$0 $0 $0 $12,925,634 $12,925,634$0 W24007$0

$0 $0 $0 $12,590,103 $12,590,103$0 $0

$0 $0 $0 $12,590,103 $12,590,103$0 W25001$0

$144,911 $464,169 $465,435 $68,959,252 $76,606,575$110,045 $30,537

$0 $0 $0 $4,672,296 $4,745,854$0 W26004$0

$29,502 $354,561 $355,827 $64,286,956 $65,385,056$0 W28001$15,090

$115,409 $109,608 $109,608 $0 $6,475,665$110,045 W28002$15,447

$0 $0 $0 $1,782,791 $2,187,801$0 $0

$0 $0 $0 $1,782,791 $2,187,801$0 $0

$0 $0 $0 $728,292 $728,292$0 W33002$0

$0 $0 $0 $142,280 $490,984$0 W34001$0

$0 $0 $0 $912,219 $968,525$0 W35002$0

$3,444,451 $2,709,318 $2,280,623 $116,230,848 $166,334,251$3,209,707 $11,027,458

$3,444,451 $2,709,318 $2,280,623 $39,722,218 $87,243,477$3,047,848 $10,481,457

$1,359,034 $1,463,322 $1,780,623 $28,711,374 $65,241,712$2,547,848 W40002$10,481,457

$1,097,311 $520,717 $500,000 $4,108,917 $7,050,070$500,000 W40007$0

$13,268 $0 $0 $0 $5,815,455$0 W40008$0

$0 $0 $0 $6,901,927 $6,901,927$0 W40009$0

$974,838 $725,279 $0 $0 $1,923,127$0 W40010$0

$0 $0 $0 $0 $311,186$0 W40011$0

$0 $0 $0 $8,266,429 $8,596,275$0 $0

$0 $0 $0 $8,266,429 $8,596,275$0 W41001$0

$0 $0 $0 $7,681,913 $7,681,913$0 $0

$0 $0 $0 $7,681,913 $7,681,913$0 W42003$0

$0 $0 $0 $0 $66,981$0 $0

$0 $0 $0 $0 $66,981$0 W43001$0

Prior 2015 Estimate

2016 Budget


Wilson Park Creek $796,575 $46,854 $634,028

W 45 002 Wilson Park Creek Reach 3 - CR $796,575 $46,854 $634,028

W 45 003 Wilson Park Creek Reach 1 - CR $0 $0 $0

W 45 004 Wilson Park Creek Reach 4 - CR $0 $0 $0

Edgerton Channel $0 $0 $0

W 46 002 Edgerton Channel Reach 1 - CR $0 $0 $0

Oak Creek Watershed $346,829 $196,640 $174,787

Oak Creek - Main Stem $346,829 $196,640 $174,787

W 50 005 Oak Creek Flood Management - Floodproofing/Acquisition $346,829 $195,022 $136,180

W 50 006 Oak Creek Watershed Restoration Plan $0 $1,618 $38,607

Lake Michigan Drainage Watershed $950 $147,384 $2,386,310

Fish Creek $950 $147,384 $2,386,310

W 61 002 Fish Creek Flood Acquisitions $950 $0 $0

W 62 001 Menomonee River Estuary Study $0 $0 $38,633

W 62 002 Burnham Canal $0 $147,384 $2,347,677

W 63 001 Milwaukee River Estuary Study $0 $0 $0

General Watercourse Projects $16,906,942 $1,999,504 $3,085,109

System Improvement Plan - Phase II $2,642,716 $46,227 $76,068

W 91 001 SIP, Phase II Corridor & SEWRPC Studies $2,642,716 $46,227 $76,068

Green Infrastructure $14,264,226 $1,953,277 $3,009,041

W 96 001 Fresh Coast Implementation $0 $668,966 $1,475,089

W 97 002 Greenseams $14,264,226 $1,170,000 $1,200,000

W 97 003 Regional Conservation Partnership Program $0 $114,311 $333,952

Inflation $0 $0 $0

W 99 002 W Inflation $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$0 $0 $0 $52,586,297 $54,771,614$161,859 $546,001

$0 $0 $0 $15,211,139 $17,396,456$161,859 W45002$546,001

$0 $0 $0 $27,502,824 $27,502,824$0 W45003$0

$0 $0 $0 $9,872,334 $9,872,334$0 W45004$0

$0 $0 $0 $7,973,991 $7,973,991$0 $0

$0 $0 $0 $7,973,991 $7,973,991$0 W46002$0

$196,146 $132,046 $32,328 $5,644,553 $6,723,329$0 $0

$196,146 $132,046 $32,328 $5,644,553 $6,723,329$0 $0

$6,162 $0 $0 $5,644,553 $6,328,746$0 W50005$0

$189,984 $132,046 $32,328 $0 $394,583$0 W50006$0

$4,343,296 $322,683 $843,799 $4,749,130 $13,475,857$635,256 $47,049

$4,343,296 $322,683 $843,799 $4,749,130 $13,475,857$635,256 $47,049

$0 $81,189 $21,530 $4,580,804 $4,684,473$0 W61002$0

$1,378 $0 $0 $0 $40,011$0 W62001$0

$4,276,881 $55,311 $773,490 $168,326 $8,451,374$635,256 W62002$47,049

$65,037 $186,183 $48,779 $0 $299,999$0 W63001$0

$3,275,694 $2,858,165 $3,128,686 $4,238,152 $41,071,621$3,089,702 $2,489,667

$0 $0 $0 $0 $2,765,011$0 $0

$0 $0 $0 $0 $2,765,011$0 W91001$0

$3,016,293 $2,527,958 $2,539,232 $1,200,000 $31,838,499$2,128,472 $1,200,000

$1,353,492 $800,227 $800,227 $0 $5,898,001$800,000 W96001$0

$1,200,000 $1,200,000 $1,200,000 $1,200,000 $23,834,226$1,200,000 W97002$1,200,000

$462,801 $527,731 $539,005 $0 $2,106,272$128,472 W97003$0

$259,401 $330,207 $589,454 $3,038,152 $6,468,111$961,230 $1,289,667

$259,401 $330,207 $589,454 $3,038,152 $6,468,111$961,230 W99002$1,289,667

Prior 2015 Estimate

2016 Budget


Other Projects $75,467,590 $24,790,059 $24,287,537

Facilities Planning $66,375,698 $22,066,225 $20,659,382

Facilities $2,393,223 $2,033,173 $2,391,889

M 01 007 KK River Flushing Station Improvements $539,839 $70,095 $0

M 01 011 NFPA Study $463,062 $157,131 $30,040

M 01 012 Milw River Flushing Station Building Rehab $191,540 $432,051 $107,543

M 01 016 Parking Lot Replacement at 13th & College $370,946 $235,369 $0

M 01 019 Safe Atmosphere Monitoring $29,533 $101,315 $121,865

M 01 020 Laboratory Safety Improvements $50,000 $10,000 $0

M 01 021 Headquarters Security Improvements $45,000 $10,000 $0

M 01 022 Enclose 3rd Floor Cubicles $50,000 $0 $0

M 01 023 Wharf Wall Improvements $460,951 $222,891 $936,694

M 01 024 ADA Improvements to HQ & Lab $0 $34,000 $0

M 01 025 13th Street Security/Card Reader System $0 $30,000 $0

M 01 026 HQ & Lab Heat & Power Generation System $0 $0 $172,568

M 01 027 Reconfigure 2nd Floor $0 $30,000 $35,000

M 01 028 Laboratory Fume Hood Removal $0 $0 $88,500

M 06 011 Information Technology Software Systems $173,000 $170,000 $70,000

M 06 012 Network Equipment Replacement $0 $520,000 $100,000

M 06 013 Capital Program Management System $0 $10,321 $726,679

M 06 014 Water Reclamation Facilities Data Management System $19,352 $0 $3,000

2020 Facilities Planning $27,904,238 $4,667,223 $3,928,797

M 03 016 Post 2020 FP Implementation Evaluation & Planning $20,974,671 $2,705,741 $2,372,647

M 03 028 Corridor Study, Phase 4 $3,446,786 $786,892 $753,769

M 03 029 Water Quality Studies $3,482,781 $1,174,590 $802,381

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$20,274,646 $22,131,445 $19,009,248 $6,938,562 $226,048,544$16,217,238 $16,932,219

$15,302,918 $17,515,159 $13,937,011 $4,479,569 $183,195,772$11,013,562 $11,846,248

$1,344,943 $4,107,646 $2,012,286 $4,249,094 $26,762,568$2,941,653 $5,288,661

$687,584 $2,171,129 $1,080,974 $4,249,094 $15,251,484$1,264,108 M01007$5,188,661

$29,920 $30,040 $0 $0 $710,193$0 M01011$0

$0 $0 $0 $0 $731,134$0 M01012$0

$0 $0 $0 $0 $606,315$0 M01016$0

$270,849 $737,551 $19,671 $0 $1,280,784$0 M01019$0

$0 $0 $0 $0 $60,000$0 M01020$0

$0 $0 $0 $0 $55,000$0 M01021$0

$0 $0 $0 $0 $50,000$0 M01022$0

$4,315 $4,332 $3,252 $0 $1,632,435$0 M01023$0

$0 $0 $0 $0 $34,000$0 M01024$0

$0 $0 $0 $0 $30,000$0 M01025$0

$202,275 $407,594 $808,389 $0 $3,168,371$1,577,545 M01026$0

$0 $0 $0 $0 $65,000$0 M01027$0

$0 $0 $0 $0 $88,500$0 M01028$0

$100,000 $100,000 $100,000 $0 $913,000$100,000 M06011$100,000

$0 $0 $0 $0 $620,000$0 M06012$0

$0 $0 $0 $0 $737,000$0 M06013$0

$50,000 $657,000 $0 $0 $729,352$0 M06014$0

$2,725,426 $2,479,342 $2,134,251 $0 $45,979,868$2,140,496 $95

$2,358,540 $2,274,141 $2,134,251 $0 $34,960,582$2,140,496 M03016$95

$0 $0 $0 $0 $4,987,447$0 M03028$0

$366,886 $205,201 $0 $0 $6,031,839$0 M03029$0

Prior 2015 Estimate

2016 Budget


Other Facilities Planning $36,078,237 $15,365,829 $14,338,696

M 03 036 Continuous Water Quality Monitoring Stations $305,884 $8,127 $0

M 03 037 2050 Facilities Planning - Ultimate Build-out $387,827 $3,311,794 $2,687,328

M 03 040 2020 Facilities Plan Implementation $5,269,398 $4,638 $0

M 03 042 Real Time WQ Monitoring Stations $1,382,770 $464,307 $43,319

M 03 043 Greenhouse Gas Planning Study $803,583 $326,349 $129,754

M 03 044 I/I Reduction on Private Property Phase II $11,615,919 $5,000,000 $5,000,000

M 03 045 Cross Connection Eliminations $963 $0 $0

M 03 048 Regional Green Roof Initiative $4,663,510 $108,950 $125,763

M 03 051 Alternative Energy Planning $299,820 $254,508 $426,132

M 03 053 Stormwater BMP's 2010-2014 $345,108 $0 $0

M 03 054 Climate Change Planning $276,962 $700 $0

M 03 058 Phosphorous Reduction Planning $281 $0 $0

M 03 059 TMDL Studies $1,615,861 $269,879 $44

M 03 060 Phosphorous Reduction Demo $425,616 $29,604 $0

M 03 062 Integrated Regional Stormwater Mgt Plan $1,207,174 $645,804 $401,751

M 03 063 Private Lateral Inspection and Engineering $3,370,552 $1,201,691 $914,980

M 03 064 Fresh Coast Green Solutions $2,807,639 $1,717,259 $1,566,419

M 03 071 Burnham Canal $297,029 $0 $0

M 03 072 Energy Plan $378,293 $30,895 $151,566

M 03 074 MMSD Force Main Condition Assessement $258,988 $141,222 $0

M 03 076 Green Solutions for Separate Infrastructure & Sewers $184,440 $1,600,000 $2,100,000

M 03 077 ZIC BMP $64,576 $36,648 $178,762

M 03 078 Milw River Water Quality Monitoring Stations $106,890 $1,616 $0

M 03 080 Water Quality Monitoring Stations $0 $200,000 $0

M 03 081 KK River Feasibility Study $9,154 $0 $0

M 03 088 Corridor Study, Phase 5 $0 $0 $316,950

M 03 089 Bacteria BMP $0 $11,838 $295,928

Workforce & Business Development Resource Program $8,386,885 $283,000 $500,000

Workforce & Business Development Resource Program $8,386,885 $283,000 $500,000

M 04 001 WDTP $8,386,885 $283,000 $500,000

Financial Planning $514,007 $219,000 $453,242

Financial Planning $514,007 $219,000 $453,242

M 07 001 Financial Planning $514,007 $219,000 $453,242

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$11,232,549 $10,928,171 $9,790,474 $230,475 $110,453,336$5,931,413 $6,557,492

$0 $0 $0 $0 $314,011$0 M03036$0

$2,348,846 $230 $0 $0 $8,736,025$0 M03037$0

$0 $0 $0 $0 $5,274,036$0 M03040$0

$0 $0 $0 $0 $1,890,396$0 M03042$0

$0 $169,340 $169,340 $0 $1,610,319$11,953 M03043$0

$5,000,000 $5,000,000 $5,000,000 $0 $46,615,919$5,000,000 M03044$5,000,000

$0 $91,682 $276,129 $0 $400,659$31,885 M03045$0

$181,277 $0 $0 $0 $5,079,500$0 M03048$0

$0 $0 $0 $0 $980,460$0 M03051$0

$0 $0 $0 $0 $345,108$0 M03053$0

$0 $0 $0 $0 $277,662$0 M03054$0

$0 $0 $315,610 $0 $1,401,124$121,863 M03058$963,370

$0 $0 $0 $0 $1,885,784$0 M03059$0

$0 $0 $0 $0 $455,220$0 M03060$0

$0 $0 $0 $0 $2,254,729$0 M03062$0

$644,913 $609,074 $508,292 $144,330 $8,003,714$374,699 M03063$235,183

$85,567 $622,394 $38,525 $0 $6,840,873$3,070 M03064$0

$0 $0 $0 $0 $297,029$0 M03071$0

$38,889 $0 $0 $0 $599,643$0 M03072$0

$0 $0 $0 $0 $400,210$0 M03074$0

$2,100,000 $2,100,000 $2,600,000 $0 $10,684,440$0 M03076$0

$245,903 $1,950,130 $497,817 $0 $2,999,969$26,133 M03077$0

$0 $0 $0 $0 $108,506$0 M03078$0

$0 $0 $0 $0 $200,000$0 M03080$0

$0 $0 $0 $0 $9,154$0 M03081$0

$394,254 $360,374 $360,374 $86,145 $2,238,846$361,810 M03088$358,939

$192,900 $24,947 $24,387 $0 $550,000$0 M03089$0

$500,000 $500,000 $500,000 $500,000 $12,166,885$500,000 $500,000

$500,000 $500,000 $500,000 $500,000 $12,166,885$500,000 $500,000

$500,000 $500,000 $500,000 $500,000 $12,166,885$500,000 M04001$500,000

$219,000 $453,242 $453,242 $453,242 $3,671,459$453,242 $453,242

$219,000 $453,242 $453,242 $453,242 $3,671,459$453,242 $453,242

$219,000 $453,242 $453,242 $453,242 $3,671,459$453,242 M07001$453,242

Prior 2015 Estimate

2016 Budget


Risk Management $0 $1,963,234 $1,166,735

Risk Management $0 $1,963,234 $1,166,735

M 09 001 Risk Management Program $0 $1,963,234 $1,166,735

Headquarters Laboratory $191,000 $258,600 $0

Laboratory Equipment $191,000 $258,600 $0

L 09 002 Replacement Laboratory Equipment $191,000 $258,600 $0

General Other Projects $0 $0 $1,511,178

Risk Management $0 $0 $100,000

M 99 002 Operator Contribution to CIP $0 $0 $100,000

Allowance $0 $0 $1,411,178

M 99 001 Allowance for Cost & Schedule Changes (M999) $0 $0 $1,411,178

Inflation $0 $0 $0

M 99 003 M Inflation $0 $0 $0

2019 Forecast

2018 Forecast

2017 Forecast

2020Forecast

Future Forecast


2021 Forecast


$1,963,234 $1,166,735 $1,166,735 $1,166,735 $10,926,878$1,166,735 $1,166,735

$1,963,234 $1,166,735 $1,166,735 $1,166,735 $10,926,878$1,166,735 $1,166,735

$1,963,234 $1,166,735 $1,166,735 $1,166,735 $10,926,878$1,166,735 M09001$1,166,735

$0 $0 $0 $0 $449,600$0 $0

$0 $0 $0 $0 $449,600$0 $0

$0 $0 $0 $0 $449,600$0 L 09002$0

$2,289,494 $2,496,309 $2,952,260 $339,016 $15,637,950$3,083,699 $2,965,994

$100,000 $100,000 $0 $0 $300,000$0 $0

$100,000 $100,000 $0 $0 $300,000$0 M99002$0

$1,793,773 $1,540,817 $1,860,775 $64,740 $9,902,291$1,854,174 $1,376,835

$1,793,773 $1,540,817 $1,860,775 $64,740 $9,902,291$1,854,174 M99001$1,376,835

$395,721 $855,493 $1,091,485 $274,277 $5,435,659$1,229,525 $1,589,159

$395,721 $855,493 $1,091,485 $274,277 $5,435,659$1,229,525 M99003$1,589,159

2016 MMSD Budget

Documents

Transcript of 2016 MMSD Budget