Board Revie Board Presentation...CWW Board Review FY 2016-17 Rate update 11 COLUMBUS WATER WORKS |FY...

COLUMBUS WATER WORKS | FY 2016-17 RATE UPDATE

Board Review

FY 2016-17 RATE UPDATE | OCTOBER 28TH, 2016


CWW BOARD REVIEWFY 2016-17 RATE UPDATE

Steve DavisJoey Murphy

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COLUMBUS WATER WORKS | FY 2016-17 RATE UPDATE 3

CURRENT FINANCIAL HIGHLIGHTS• Maintain a comprehensive 5-year rolling financial plan

– EPD Consent Order related to Inflow & Infiltration – Fort Benning Expenses are supported by Fort Benning Revenues

• Coordinated Planning drives Capital Improvements Plan – Reinvestment in Infrastructure

• Regulatory Requirements • System Renewals and Upgrades• Risk Mitigation

• Issued 2016 Bond

• +/- 1.45M approved by FEMA/GEMA for reimbursements related to December 2015 severe storm event.

• Rates continue to be among lowest in Southeast US


2016 RATE COMPARISON TYPICAL RESIDENTIAL (8 CCF)

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Assumes 8 ccf = 800 cubic feet = 5,980 gallonsRates in October 2015

* Water OnlyColumbus rate excludes CSO charge


HISTORICAL AUDITED EXPENSESFY 2012 Operating Expenses $ 30,913,059FY 2016 Operating Expenses $ 33,086,535

Total Difference $ 2,173,476Average Increase Per Year $ 434,695

Average Annual Increase 1.41%

Municipal Cost Index (FY 12- FY 16) 1.91%


AWARD WINNING UTILITY• Since July 2015, CWW has received 34 Local, State and

National Awards including:

– Georgia Association of Water Professionals – Master Plan Award

– Government Finance Officers Association (GFOA) - Certificate of Achievement for Excellence in Financial Reporting

– Georgia Association of Water Professionals - Platinum Awards for Compliance

» North Columbus Water Resources Facility (NCWRF)» Hasting Well» Griswold Well» McKenna Well» Carmouche Well» Camp Darby Well » Leyte Well » Collection System


2016 BOND ISSUE – RATING AGENCY UPGRADES• Moody’s Investors Services

– Upgrade to Aa2 from Aa3• Standard & Poor’s Rating Services

– Upgrade to AA+ from AA• Upgrades were estimated to produce a 10 basis point

interest rate improvement from prior ratings which equates to a +/- $727,000.00 debt service savings over the term of the 2016 Bond.


CURRENT CAPITAL PROJECTS$50 Million bond issue in 2016, funding 25 projects

Project Type

CapitalInvestment

Number of Projects

NCWRF 10,540,000 9SCWRF 22,180,000 7Sanitary Sewer Collection 5,570,000 3

Water Distribution System 5,050,000 3

Miscellaneous 6,660,000 3

Total $50,000,000 25


SYSTEM WIDE PER CAPITA WATER CONSUMPTION

Population Data from Georgia Department of Labor, estimated for 2016

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Annual Per Capita Reduction 2012‐2016 – 18.45%


HISTORIC RATE CHANGES - 10 YEARS

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10‐year average rate increase including 2017 recommendation: 3.68% *According to data from the AWWA/RFC National Water and Wastewater Rate Survey, the national average bill increase has been approximately 6.5% annually sine 2012. This trend is expected to continue in future years.

**System Average (20 ccf) includes all customer classes; Residential, Commercial and Industrial

2008Actual

2009 Actual

2010Actual

2011Actual

2012Actual

2013Actual

2014Actual

2015Actual

2016Actual

2017Proposed

National Average* 5.95% 5.95% 5.60% 6.70% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

Model Projection** 3.95% 3.95% 3.95% 3.95% 3.95% 4.95% 4.95% 4.95% 4.95% 4.95%

Actual /ProposedSystem Average **

3.88% 3.77% 3.82% 3.88% 0.00% 4.95% 4.73% 4.88% 3.94% 2.90%


JOEY MURPHYCWW Board ReviewFY 2016-17 Rate update

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PURPOSE & OBJECTIVE• Financial Plan Results FY 15-16• Long-term Forecast

– FY 2016-17 through FY 2020-21 Financial Planning Projections

• Rate Recommendations– Present planned rate increase for 2017 – Present estimated five-year plan for rate

projections

Overall rate objective: to promote system efficiency and sustainability


FINANCIAL PLANNING RESULTS

Section I:

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RESULTS OF FY 15-16 OPERATIONS• Water, Sewer, CSO Revenues and Fort Benning

ROI of $53.34M – $972,721 above budget projections

• Total Operating Costs of $33.09 M – $2.05M below projections

• Actual water demand was slightly below projection

• Actual sewer demand was slightly above projection


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200

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800

1,000

1,200

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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

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Actual Water Actual Sewer

Projected Water Projected Sewer

2016 CONSUMPTION: ACTUAL V. PROJECTED

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LONG-TERM FORECAST &RATE RECOMMENDATIONS

Section II:

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TOTAL FORECASTED EXPENDITURES

FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21CWW Expenditures

(excludes Ft. Benning) $57.82 $60.24 $62.68 $65.96 $69.34

$0

$10

$20

$30

$40

$50

$60

$70

$80

$ Millions

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CURRENT 5-YEAR RATE PLAN2017

Proposed2018

Projected2019

Projected2020

Projected2021

Projected

*National Average 6.50% 6.50% 6.50% 6.50% 6.50%

Proposed Plan 4.95% 3.95% 3.95% 3.95% 3.95%

Recommended**System Average 2.90%

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*According to the data from the AWWA/RFC National Water and Wastewater Rate Survey, the national average bill increase has been approximately 6.5% annually since 2012. This trend is expected to continue in future years.

**System Average (20 ccf) includes all customer classes; Residential, Commercial & Industrial

CWW 10‐year historical rate increase including 2017 recommendation: 3.68%


2017 WATER BASE CHARGES(BILLS RENDERED AS OF JANUARY 1, 2017)

Meter Size Current Minimum Charge

Projected Minimum Charge

5/8” $ 5.19 $ 5.82

3/4” $ 5.19 $ 5.821” $ 6.15 $ 6.90

1‐1/2” $ 7.10 $ 7.972” $ 9.73 $ 10.923” $ 29.05 $ 32.624” $ 36.21 $ 40.666” $ 52.91 $ 59.428” $ 72.00 $ 80.8610” $ 86.32 $ 96.94

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2017 WATER VOLUME CHARGES(BILLS RENDERED AS OF JANUARY 1, 2017)

Block Current Rate (per CCF)

Proposed Rate (per CCF)

Non‐Industrial

1 (to 15 CCF) $1.64 $1.67

2 (> 15 CCF) $1.76 $1.80

Industrial

1 (to 15 CCF) $1.64 $1.67

2 (> 15 CCF) $1.51 $1.54

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2017 WASTEWATER & CSO CHARGES(BILLS RENDERED AS OF JANUARY 1, 2017)

Block Current Rate (per ccf) Proposed Rate (per ccf)

1 (to 15 ccf) $ 3.17 $3.23

2 (> 15 ccf) $ 2.44 $ 2.49

Current Base Charge Proposed Base Charge

$ 2.97 $ 3.33

CSO Block Current Charge Proposed Charge

0 to 4 ccf5‐15 ccf16‐204 ccf205‐1004 ccfOver 1004 ccf

$ 0.00$ 3.37$ 6.78$ 67.70$ 193.44

$ 0.00$ 3.54$ 7.12$ 71.05$ 203.02

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AFFORDABILITY PROGRAM

• Affordability Program is provided in concert with City’s Low Income Garbage Collection Adjustment

• Current Garbage Rate $17.00 per month• $4.20 credit per month on garbage rate

• CWW Program includes– $4.50 credit on residential bill


PROPOSED RATE COMPARISON TYPICAL RESIDENTIAL (8 CCF)

Assumes 8 ccf = 800 cubic feet = 5,980 gallons Rates as of September 2016, with CWW proposed 2017 rates

* Water OnlyColumbus rate excludes CSO charge

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RESIDENTIAL CUSTOMER BILLS WATER, SEWER & CSO

(With estimated 5-year increases)

2016 2017 2108 2019 2020 20218 ccf Bill $50.01 $51.89 $54.37 $56.98 $59.74 $62.76Increase $1.88 $2.48 $2.61 $2.76 $3.02

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

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OBSERVATIONS & CONCLUSIONS• Forecasted rate increases over the planning horizon are

consistently lower that the national average of historical increases

• Key focus is continuation of reinvestment in infrastructure through the Capital Improvement Plan


QUESTIONS

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SUPPLEMENTALSCHEDULES

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Columbus Water WorksFinancial Planning ModelSchedule 12 - Financial Plan Summary

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Projected Projected Projected Projected Projected

Total Estimated RevenuesRevenues from User Charges 51,241,402$ 53,296,489$ 55,771,460$ 58,418,511$ 61,229,828$ Other Miscellaneous Revenue 2,534,810 2,554,150 2,573,680 2,593,400 2,613,330 Ft. Benning Revenue 18,515,515 18,920,734 19,185,473 20,082,962 20,364,041

Total: Revenues 72,291,727$ 74,771,373$ 77,530,614$ 81,094,873$ 84,207,199$

Impacts on Average Monthly BillsResidential Impact 3.76% 4.78% 4.80% 4.84% 5.06%Commercial Impact 2.74% 3.63% 3.79% 3.76% 3.83%Industrial Impact 2.05% 2.94% 3.09% 3.01% 2.94%Average Impact 2.90% 3.87% 3.94% 3.92% 4.05%

Projected Revenue RequirementsDepartmental O&M 44,153,682$ 45,778,660$ 47,475,780$ 49,248,470$ 51,100,100$

Debt ServiceSenior Revenue Bonds ($30 million bond issue projected in FY2021) 18,802,890$ 18,804,417$ 18,644,416$ 18,711,976$ 20,191,390$ SRF & Other Loans 2,592,250 2,592,250 2,592,250 2,592,250 2,566,493 City of Columbus 3,484,621 3,657,690 3,806,180 4,002,470 4,183,630 Bank Merchant / Trustee Fees 251,437 251,437 251,437 251,437 251,437

Capital (Paygo + Capital Outlay) 2,930,590$ 3,582,370$ 4,582,370$ 6,082,370$ 5,782,370$

Total: Revenue Requirements 72,215,470$ 74,666,824$ 77,352,433$ 80,888,973$ 84,075,420$

Annual Revenue Surplus/(Deficit) 76,257$ 104,549$ 178,180$ 205,900$ 131,778$

Coverage Ratios (CWW Overall)Total Debt Service (State Requires 1.05 min) 1.32 1.36 1.42 1.50 1.46Senior Debt Service (1.20 Requirement) 1.51 1.55 1.62 1.71 1.65MADS (1.20 Requirement) 1.32 1.36 1.41 1.50 1.56

Reserve BalancesEnding Fund Balance: Operating Fund 21,447,995$ 22,176,047$ 22,973,673$ 24,024,025$ 24,970,400$ Ending Fund Balance: Capital Reserves 10,690,683 10,067,180 9,447,735 8,603,282 7,788,686

32,138,678$ 32,243,227$ 32,421,407$ 32,627,307$ 32,759,086$

Columbus Water WorksFinancial Planning ModelSchedule 9 - Projected Rates

CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021Current Projected Projected Projected Projected Projected

Water RatesMonthly Fixed Charges

Monthly Service Charge $ 2.80 $ 3.14 $ 3.52 $ 3.94 $ 4.41 $ 4.94Charge per Equivalent Meter $ 2.39 $ 2.68 $ 3.00 $ 3.36 $ 3.76 $ 4.21

Inside City Volume RatesBlock 1: 0-15 ccf $ 1.64 $ 1.67 $ 1.72 $ 1.77 $ 1.82 $ 1.87Block 2: >15 ccf $ 1.76 $ 1.80 $ 1.85 $ 1.91 $ 1.97 $ 2.03Block 2, Industrial $ 1.51 $ 1.54 $ 1.59 $ 1.64 $ 1.69 $ 1.74

Wastewater RatesMonthly Fixed Charges

Monthly Service Charge $ 2.97 $ 3.33 $ 3.73 $ 4.18 $ 4.68 $ 5.24

Inside City Volume RatesBlock 1: 0-15 ccf $ 3.17 $ 3.23 $ 3.33 $ 3.43 $ 3.53 $ 3.64Block 2: >15 ccf $ 2.44 $ 2.49 $ 2.56 $ 2.64 $ 2.72 $ 2.80

Industrial Waste Volume Charge (per ccf) $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20

Combined Sewer Overflow Charge (per bill)CSO Block Cutoffs

0-4 ccf $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.004-15 ccf $ 3.37 $ 3.54 $ 3.72 $ 3.90 $ 4.09 $ 4.2915-204 ccf $ 6.78 $ 7.12 $ 7.47 $ 7.84 $ 8.23 $ 8.64204-1004 ccf $ 67.70 $ 71.05 $ 74.57 $ 78.26 $ 82.13 $ 86.20>1004 ccf $ 193.44 $ 203.02 $ 213.07 $ 223.62 $ 234.69 $ 246.31

Estimated Rate IncreasesWater

Base Charge 7.00% 12.00% 12.00% 12.00% 12.00% 12.00%Volume Rates 3.50% 2.00% 3.00% 3.00% 3.00% 3.00%

WastewaterBase Charge 7.00% 12.00% 12.00% 12.00% 12.00% 12.00%Volume Rates 3.50% 2.00% 3.00% 3.00% 3.00% 3.00%

Combined Sewer Overflow 4.95% 4.95% 4.95% 4.95% 4.95% 4.95%Industrial Waste Volume Charge 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Columbus Water WorksFinancial Planning ModelSchedule 10 - Summary Customer Monthly Bill Impacts

CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021Current Projected Projected Projected Projected Projected

Typical Customer Bills Average Residential (1)

Water $ 18.31 $ 19.18 $ 20.28 $ 21.46 $ 22.73 $ 24.11 Wastewater $ 28.33 $ 29.17 $ 30.37 $ 31.62 $ 32.92 $ 34.36 Combined Sewer Overflow $ 3.37 $ 3.54 $ 3.72 $ 3.90 $ 4.09 $ 4.29

Total Average Residential Bill $ 50.01 $ 51.89 $ 54.37 $ 56.98 $ 59.74 $ 62.76$ Change $ 2.05 $ 1.88 $ 2.48 $ 2.61 $ 2.76 $ 3.02% Change 4.27% 3.76% 4.78% 4.80% 4.84% 5.06%

Average Commercial (2) Water $ 57.15 $ 58.94 $ 61.27 $ 63.84 $ 66.52 $ 69.33 Wastewater $ 87.12 $ 89.13 $ 92.08 $ 95.23 $ 98.43 $ 101.84 Combined Sewer Overflow $ 6.78 $ 7.12 $ 7.47 $ 7.84 $ 8.23 $ 8.64

Total Average Commercial Bill $ 151.05 $ 155.19 $ 160.82 $ 166.91 $ 173.18 $ 179.81$ Change $ 5.56 $ 4.15 $ 5.63 $ 6.09 $ 6.27 $ 6.63% Change 3.82% 2.74% 3.63% 3.79% 3.76% 3.83%

Average Industrial (3, 4) Water (excludes block 2 surcharge) $ 869.75 $ 887.71 $ 917.17 $ 946.74 $ 976.43 $ 1,006.27 Wastewater (excludes industrial volume charge) $ 1,515.72 $ 1,544.73 $ 1,585.48 $ 1,631.83 $ 1,678.23 $ 1,724.84 Combined Sewer Overflow $ 67.70 $ 71.05 $ 74.57 $ 78.26 $ 82.13 $ 86.20

Total Average Industrial Bill $ 2,453.17 $ 2,503.49 $ 2,577.22 $ 2,656.83 $ 2,736.79 $ 2,817.31$ Change $ 78.55 $ 50.32 $ 73.73 $ 79.61 $ 79.96 $ 80.52% Change 3.31% 2.05% 2.94% 3.09% 3.01% 2.94%

Average Systemwide (5) Water $ 38.59 $ 39.87 $ 41.57 $ 43.40 $ 45.32 $ 47.35 Wastewater $ 62.72 $ 64.23 $ 66.48 $ 68.83 $ 71.23 $ 73.84 Combined Sewer Overflow $ 6.78 $ 7.12 $ 7.47 $ 7.84 $ 8.23 $ 8.64

Total Average Bill $ 108.09 $ 111.22 $ 115.52 $ 120.07 $ 124.78 $ 129.83$ Change $ 4.10 $ 3.13 $ 4.30 $ 4.55 $ 4.71 $ 5.05% Change 3.94% 2.90% 3.87% 3.94% 3.92% 4.05%

(1) Average monthly residential flows are assumed to be 8 CCF with a 5/8' meter.(2) Average monthly commercial flows are assumed to be 30 CCF with a 1' meter.(3) Average monthly industrial flows are assumed to be 570 CCF with a 1.5' meter.(4) The industrial volume charge is excluded from these numbers.(5) Average monthly systemwide flows are assumed to be 20 CCF with a 5/8' meter.

Columbus Water WorksFinancial Planning ModelSchedule 7 - Revenue Sufficiency & Proof (Incl. Fort Benning)

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Projected System Revenues Projected Projected Projected Projected Projected

User Charge RevenueWater Revenue

Base Charge Revenues 4,682,787$ 5,260,778$ 5,905,702$ 6,626,567$ 7,436,528$ Volumetric Rate Revenues 18,046,001 18,493,439 19,087,436 19,708,149 20,331,277

Contract Customer RevenuesHarris County 652,839$ 680,676$ 710,640$ 742,079$ 775,318$ Talbot County 145,064 151,250 157,908 164,894 172,280 1

Subtotal: Contract Customer Revenues 797,904 831,925 868,548 906,973 947,598

Subtotal: Water Revenue 23,526,691$ 24,586,142$ 25,861,686$ 27,241,688$ 28,715,404$

Wastewater RevenuesBase Charge Revenues 2,284,821$ 2,566,847$ 2,883,053$ 3,237,338$ 3,633,696$ Volume Rate Revenues 23,074,735 23,679,201 24,449,138 25,244,060 26,060,915 Industrial Waste Volume Charges 300,140 300,624 301,108 301,592 302,076

Subtotal: Wastewater Revenue 25,659,696$ 26,546,671$ 27,633,298$ 28,782,989$ 29,996,686$

CSO Charge Revenue 2,055,015$ 2,163,676$ 2,276,476$ 2,393,833$ 2,517,738$

Subtotal User Charge Revenue 51,241,402$ 53,296,489$ 55,771,460$ 58,418,511$ 61,229,828$ 4.0% 4.6% 4.7% 4.8%

Other Miscellaneous RevenueNon-Rate Operating Reveneus

Water Tapping Fees (excludes fire line charges) 180,310$ 182,110$ 183,930$ 185,770$ 187,630$ Sewer Tapping Fees 25,970 26,230 26,490 26,750 27,020 Industrial Surcharge Revenues 204,640 206,690 208,760 210,850 212,960 Fire Line Charges 265,000 265,000 265,000 265,000 265,000 Sewer Availability Fees Collected (Restricted) 175,000 175,000 175,000 175,000 175,000

Subtotal: Non-Rate Operating Reveneus 850,920$ 855,030$ 859,180$ 863,370$ 867,610$

Non-Operating ReveneusSundry Income 205,050$ 207,100$ 209,170$ 211,260$ 213,370$ Solid Waste Collection 120,000 120,000 120,000 120,000 120,000 Interest Income (other funds) 6,790 6,790 6,790 6,790 6,790 Miscellaneous Water and Sewer Fees 1,318,050 1,331,230 1,344,540 1,357,980 1,371,560

Subtotal: Non-Operating Reveneus 1,858,890$ 1,874,120$ 1,889,500$ 1,905,030$ 1,920,720$

Fort Benning Related IncomeOriginal Contract 7,507,726$ 7,664,922$ 7,664,892$ 8,289,251$ 8,497,370$ BRAC-related Debt Service + Coverage 4,865,131 4,865,131 4,865,131 4,865,131 4,865,131 BRAC-related O&M + R&R Contract Mod 6,142,657 6,390,682 6,655,451 6,928,581 7,001,540

- - - - -

Subtotal: Fort Benning Related Income 18,515,515$ 18,920,734$ 19,185,473$ 20,082,962$ 20,364,041$

Subtotal: Miscellaneous Revenues 21,225,325$ 21,649,884$ 21,934,153$ 22,851,362$ 23,152,371$

Total: System Revenues 72,466,727$ 74,946,373$ 77,705,614$ 81,269,873$ 84,382,199$ % Change 3.42% 3.68% 4.59% 3.83%

Columbus Water WorksFinancial Planning ModelSchedule 7 - Revenue Sufficiency & Proof (Incl. Fort Benning)

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Revenue Requirements

Departmental Expenditures (47,084,272)$ (47,986,530)$ (49,683,650)$ (51,456,340)$ (53,307,970)$ Less: Departmental Capital 2,930,590 2,207,870 2,207,870 2,207,870 2,207,870

Net: Operating Expenses (44,153,682)$ (45,778,660)$ (47,475,780)$ (49,248,470)$ (51,100,100)$

Capital & Other CostsDebt Service

Existing Debt Service (21,395,140)$ (21,396,667)$ (21,236,666)$ (21,304,226)$ (20,528,356)$

Proposed Debt ServiceRevenue Bonds -$ -$ -$ -$ (2,229,527)$ SRF & Other Loans - - - - - 1

Subtotal: Proposed Debt Service - - - - (2,229,527)

Total: Debt Service (21,395,140)$ (21,396,667)$ (21,236,666)$ (21,304,226)$ (22,757,883)$

Other ExpendituresCity of Columbus Participation (3,484,621)$ (3,657,690)$ (3,806,180)$ (4,002,470)$ (4,183,630)$ Bank Merchant / Trustee Fees (251,437) (251,437) (251,437) (251,437) (251,437) Rate Funded Capital (Paygo) - (1,374,500) (2,374,500) (3,874,500) (3,574,500) Departmental Capital (2,930,590) (2,207,870) (2,207,870) (2,207,870) (2,207,870) Contribution to Capital Reserves from Rates - - - - - 1

Subtotal: Other Expenditures (6,666,648)$ (7,491,497)$ (8,639,987)$ (10,336,277)$ (10,217,437)$

Subtotal: Capital & Other Expenditures (28,061,788)$ (28,888,164)$ (29,876,653)$ (31,640,503)$ (32,975,320)$

Fund Transfers From (To)Operating / Capital ReservesTransfer from FB R&E Account - - - - - Sewer Availability Fund Withdrawals/(Deposits) (175,000) (175,000) (175,000) (175,000) (175,000) 1

Subtotal: Fund Transfers From (To) (175,000)$ (175,000)$ (175,000)$ (175,000)$ (175,000)$

Total Revenue Requirements (72,390,470)$ (74,841,824)$ (77,527,433)$ (81,063,973)$ (84,250,420)$

Estimated Surplus/(Deficit) 76,257$ 104,549$ 178,180$ 205,900$ 131,778$

Debt Service CoverageTotal Revenues 72,466,727$ 74,946,373$ 77,705,614$ 81,269,873$ 84,382,199$

Less: Operating Expenses (44,153,682) (45,778,660) (47,475,780) (49,248,470) (51,100,100)

Revenue Available for Debt Service 28,313,045$ 29,167,713$ 30,229,834$ 32,021,403$ 33,282,099$

ObligationsSenior Debt Service 18,802,890$ 18,804,417$ 18,644,416$ 18,711,976$ 20,191,390$ All Other Debt Obligations 2,592,250 2,592,250 2,592,250 2,592,250 2,566,493 City Participation 3,484,621 3,657,690 3,806,180 4,002,470 4,183,630

Total: Obligations 24,879,761$ 25,054,357$ 25,042,846$ 25,306,696$ 26,941,513$

Senior Debt Service Coverage (1.20 Requirement) 1.51 1.55 1.62 1.71 1.65

Total Debt Service Coverage (State Requires 1.05 min) 1.32 1.36 1.42 1.50 1.46

Total Debt Service Coverage (Including City Participation) 1.14 1.16 1.21 1.27 1.24

MADS (1.20 Requirement) 1.32 1.36 1.41 1.50 1.56

Columbus Water WorksFinancial Planning ModelSchedule 11 - Utility Reserve Projections

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Projected Projected Projected Projected Projected

Operating FundBeginning Balance 16,300,943$ 21,447,995$ 22,176,047$ 22,973,673$ 24,024,025$

Additions:Operating Surplus 76,257 104,549 178,180 205,900 131,778 Transfers from Other Funds 5,070,795 623,503 619,446 844,452 814,596

Subtractions:Operating Deficit - - - - - Transfers to Other Funds - - - - -

Ending Balance 21,447,995$ 22,176,047$ 22,973,673$ 24,024,025$ 24,970,400$

Minimum Target 25.0% of operating and capital requirements 15,045,256$ 15,518,613$ 16,130,130$ 16,949,442$ 17,794,324$ Maximum Target 33.0% of operating and capital requirements 23,831,105 24,640,052 25,526,303 26,693,361 27,744,889

Capital Reserve FundBeginning Balance 15,761,478$ 10,690,683$ 10,067,180$ 9,447,735$ 8,603,282$

Additions:From Operating Fund - - - - -

Subtractions:To Operating Fund (5,070,795) (623,503) (619,446) (844,452) (814,596) To Fund Capital Improvements - - - - -

Ending Balance 10,690,683$ 10,067,180$ 9,447,735$ 8,603,282$ 7,788,686$

Minimum Target 30.0% avg capital funding needs or est. depreciation 6,840,780$ 7,026,165$ 7,216,574$ 7,412,143$ 7,613,012$ Maximum Target 100.0% avg capital funding needs or est. depreciation 22,802,600 23,420,550 24,055,247 24,707,144 25,376,708

Combined Operating and Capital FundsBeginning Balance 32,062,421$ 32,138,678$ 32,243,227$ 32,421,407$ 32,627,307$

Additions: 5,147,052 728,052 797,626 1,050,352 946,375 Subtractions: (5,070,795) (623,503) (619,446) (844,452) (814,596)

Ending Balance 32,138,678$ 32,243,227$ 32,421,407$ 32,627,307$ 32,759,086$

Minimum Target 21,886,036$ 22,544,778$ 23,346,704$ 24,361,585$ 25,407,336$ Maximum Target 46,633,705 48,060,602 49,581,550 51,400,506 53,121,597

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FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

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Ending Reserve Fund Balance v. Targets

Ending Balance

Minimum Target

Maximum Target

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