Review draft stormwater fee analysis for fiscal year 2025

Village of Pinecrest FY 2025 Stormwater Fee Study Draft Report Village of Pinecrest 12645 Pinecrest Parkway Pinecrest, FL 33156 305-234-2121 SCS Engineers Management Services 09223245.00 | May 17th 2024 5850 South Semoran Blvd Orlando, FL 32822 Report Title Page ii www.scsengineers.com May 17th, 2024 Mr. David Mendez Public Works Director Village of Pinecrest 12645 Pinecrest Parkway Pinecrest, FL 33156 Subject: Stormwater Fee Analysis – Draft Report Dear Mr. Mendez: SCS Engineers’ Management Services is pleased to present this Draft Report for Stormwater Fee Analysis conducted for the Village of Pinecrest. SCS was retained by the Village of Pinecrest to make a long-term financial management plan for the Village’s stormwater operations through FY 2034, and to update the current stormwater fee structure. The Study relied on information provided by Village staff including, but not limited to, customer and service type information, historical stormwater billed amounts, budgeted and historical financial operating revenues and costs, capital plans, long-term liabilities, property rolls, and other financial and internal policy information. The report following this letter details the assumptions, findings, and recommendations of this analysis, and includes an executive summary that summarizes the key results and findings for each component of the study. We appreciate this opportunity to be of service to the Village, and the kind and diligent assistance provided by you and your staff. We look forward to continue working with you in the future. If you have any questions or would like to discuss this further, please call me anytime at (386) 546-7719. Vita Quinn, MBA Director of Management Services SCS Engineers Kira Bieber Senior Analyst SCS Engineers Section Page Final Report www.scsengineers.com Page i Table of Contents 1 Executive Summary ............................................................................................................................ 2 Background ........................................................................................................................................ 2 Project Objective ................................................................................................................................ 2 Results & Recommendations ............................................................................................................ 2 Revenue Sufficiency Analysis Results ..................................................................................... 2 Stormwater Fee Structure Analysis Results............................................................................ 3 2 Introduction ........................................................................................................................................ 4 Background ........................................................................................................................................ 4 Project Objective ................................................................................................................................ 4 3 Revenue Sufficiency Analysis ............................................................................................................ 4 Project Initiation ................................................................................................................................. 4 Revenue Sufficiency Model ............................................................................................................... 5 Interactive Meetings .......................................................................................................................... 5 Source Data ........................................................................................................................................ 5 Fund Balances .......................................................................................................................... 5 Rate Revenues ......................................................................................................................... 6 Other Revenues ........................................................................................................................ 6 Operating Expenses ................................................................................................................. 6 Debt Service .............................................................................................................................. 6 Assumptions ....................................................................................................................................... 6 Customer Account Growth and Change in Usage ................................................................... 6 Cost Escalation ......................................................................................................................... 6 Interest Earnings ...................................................................................................................... 6 Reserve Policies ....................................................................................................................... 6 Results ................................................................................................................................................ 7 4 Stormwater Fee Structure Analysis ................................................................................................... 8 Evaluation of Property Data ............................................................................................................... 8 Stormwater User Fee ......................................................................................................................... 8 5 Results & Recommendations ......................................................................................................... 10 Revenue Sufficiency Analysis Results .................................................................................. 10 Stormwater Fee Structure Analysis Results......................................................................... 10 Final Report www.scsengineers.com Page 2 1 EXECUTIVE SUMMARY This Executive Summary represents a summary of the results of an analysis (Study) to update the Stormwater fee program for the Village of Pinecrest (Village) to fund the costs incurred by the Village each year in providing and maintaining the facilities, equipment, staff and services necessary for the collection and management of stormwater in the Village. BACKGROUND The Village of Pinecrest, located in southeast Miami-Dade County, Florida, was incorporated in 1996 and has a population of about 18,000 in a total area of approximately 7.53 square miles. The Village currently funds its Stormwater System (System) through a user fee appearing on the residents’ tax bills. The Village’s Stormwater Utility (Utility) operates as an enterprise fund. While the Village monitors the sufficiency of revenue generated by its stormwater rates, the Village last evaluated the underlying cost allocation and structure of its stormwater fees in 2019. Therefore, the Village recently retained SCS Engineers to evaluate and update its current stormwater fee structure and to develop recommended modifications to ensure compliance with generally accepted ratemaking practice and legal precedent, and fairly and equitably recover the current cost of service from the customers of the System. PROJECT OBJECTIVE The objectives of this Study were as follows: 1. Perform a 10-year revenue sufficiency analysis for the Utility operations, including a long- term financial management plan and series of rate adjustments, if necessary. 2. Update the Village Stormwater fees in accordance with Florida law, judicial standards established through case law, and generally accepted ratemaking principles to recover costs associated with improving and maintaining the Village Stormwater System. RESULTS & RECOMMENDATIONS Revenue Sufficiency Analysis Results Based upon the data, assumptions, and conversations with Village staff described herein, our analysis concludes that the Village’s current stormwater fees would not be sufficient to meet its ongoing operating, debt service, capital, and working capital reserve requirements over the 10-year projection period if it executes all of its planned capital. However, the Village can avoid the need for revenue increases if it only executes an average of approximately $1.3 million of its capital improvement program projects in each year of the projection period. If the Village wants to pay for more of these projects, revenue increases would be required. With the recommended capital spending, the revenue plan is reflected in the table below. Final Report www.scsengineers.com Page 3 Stormwater Fee Structure Analysis Results Based upon the results of this Study, it is recommended that the Village bill Stormwater fees based on a two-tiered system. Tier 1 applies to all parcels, and represents the availability of Stormwater services to all parcels in the Village. Regardless of development status, all parcels benefit from the access to, increased marketability, and enhanced enjoyment of the parcel due to the Village’s Stormwater program keeping roads and public areas free from flooding and other issues that might occur if there were not adequate drainage. To calculate the net revenue requirement (NRR) for Tier 1, SCS’ GIS team performed a mapping analysis to determine the impervious area of Village-maintained roads in the Village of Pinecrest. SCS also identified which parcels are government owned properties and their total impervious area. Next, we calculated the total impervious area of Village-maintained roads and government property as a percentage of the total impervious area of the Village. This value represents approximately one third of the total impervious area in the analysis, and was then used to apportion the NRR to Tier 1, with the remaining approximately 67% representing the NRR for Tier 2. The second tier apportions the Tier 2 NRR based on Equivalent Billing Units (EBUs) associated with each parcel. An EBU is defined as 100 square feet of impervious area. Each parcel’s impervious square footage is rounded down to the nearest 100 square feet and then divided by 100 to calculate total parcel EBUs. Vacant parcels will only pay Tier 1, unless they contain impervious area. The proposed fee schedule and fee calculation methodology is presented in the table below: Recommended Stormwater Fee Recommended FY 2025 Annual Stormwater Fee: Tier 1: $93.37 per parcel. Tier 2: $2.95 per Equivalent Billing Unit (EBU) No annual rate adjustments throughout the projection period. Equivalent Billing Unit (EBU): 1 EBU = 100 square feet of impervious area Billing Frequency: Bill annually on the property tax bill as a fee. EBU Calculation: Round down impervious square footage to nearest 100 square feet. Divide parcel impervious area by 100 square feet (1 EBU) = Total Parcel EBUs Fee Calculation: Tier 1 Fee ($93.37) + Tier 2 Fee (Total Parcel EBUs x $2.95) = Total FY 2025 Fee Vacant parcels will only pay Tier 1, unless they contain impervious area. FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Revenue Adjustment % 0.00% 0.00% 0.00% 0.00% 0.00% 5-Year Revenue Adjustment Plan Final Report www.scsengineers.com Page 4 2 INTRODUCTION The Village of Pinecrest owns, operates, and maintains a stormwater system (System) that serves the Village. The Village engaged SCS Engineers to conduct a study to update the Village’s Stormwater Fee and to assist in administering the fee on the annual property tax bill. BACKGROUND The Village of Pinecrest, located in southeast Miami-Dade County, Florida, was incorporated in 1996 and has a population of about 18,000 in a total area of approximately 7.53 square miles. The Village currently funds its Stormwater System (System) through a user fee appearing on the residents’ tax bills. The current fee for an average residential dwelling unit currently is $127.68 per Equivalent Residential Unit (ERU), with an ERU representing approximately 5,000 square feet of impervious area. Residential parcels represent approximately 93% of total parcels. The fee for commercial parcels is $120.00 per ERU. The Utility operates as an enterprise fund. While the Village monitors the sufficiency of revenue generated by its Stormwater fees, the Village last evaluated the underlying cost allocation and structure of its Stormwater fees in 2019. Therefore, the Village recently retained SCS Engineers to evaluate its current stormwater rate structure and to develop recommended modifications to ensure compliance with generally accepted ratemaking practice and legal precedent, and fairly and equitably recover the current cost of service from the customers of the system. PROJECT OBJECTIVE The objectives of this Study were as follows: 1. Perform a 10-year revenue sufficiency analysis for the Utility’s operations, including a long- term financial management plan and series of rate adjustments. 2. Update the Village Stormwater fees in accordance with Florida law, judicial standards established through case law, and generally accepted ratemaking principles to recover costs associated with improving and maintaining the System. 3 REVENUE SUFFICIENCY ANALYSIS Based on data and information provided by Village staff, SCS developed a revenue sufficiency analysis (RSA). The RSA looked at the sufficiency of the Village residential stormwater collection fees to fund stormwater operations. This model enabled SCS to make a long-term financial management plan for the Village and test various levels of rate adjustments. PROJECT INITIATION To begin the RSA, we discussed with Village staff our data requirements. We obtained: • Historical and budgeted revenues and expenses • The trial balance for the Stormwater Utility Fund as of 9/30/2023 • 10-year stormwater master plan project schedule Final Report www.scsengineers.com Page 5 • Total billed units from 2018 - 2023 • Amortization schedules for any outstanding debt/leases and any accompanying covenants or debt service coverage requirements • Any other data, regulatory requirements, or financial policies affecting the Utility We then proceeded to load the data into our revenue sufficiency model prior to meeting with Village staff. REVENUE SUFFICIENCY MODEL The total amount of revenue that will be assessed for the Utility fund is based on the Net Revenue Requirement (NRR) as determined by conducting a Revenue Sufficiency Analysis (RSA). Our revenue sufficiency model creates a multi-year projection of the sufficiency of the Village’s current Stormwater user fees to meet the projected financial requirements. The model calculates the level of rate increases required for the fund to meet its revenue requirements. It reproduces the cash flows of the Stormwater enterprise fund in each year of the projection period, based upon the projected revenues and expenses and the Village’s policies for uses of available fund balances. In each year, the model utilizes unrestricted fund balances, operating revenues, and capital funds to pay for any operating and capital expenditures in that year. To the extent necessary to fund all of the projects in the CIP, the model can identify the level of borrowing and the resulting debt service payments that would be required. INTERACTIVE MEETINGS After loading the revenue sufficiency model and calibrating it to the Village’s financial dynamics, we conducted several interactive meetings with staff to review the data provided. During these meetings, we projected our models onto a viewing screen, walked Village staff through the data and discussed any questions that arose during our analysis. We also discussed assumptions to be used in the analysis, such as working capital reserve targets, interest earnings on fund balances, assumed term and rate for future borrowing, future development that may affect customer growth, policies or regulatory requirements that may affect stormwater requirements, operating cost escalation rates, etc. Once we reviewed the model, we began to test the sensitivity of the model outcomes to changes in various variables. For each scenario tested, we developed a corresponding financial management plan and series of annual rate adjustments that would allow the fund to meet its cost requirements while attaining its strategic goals and financial performance objectives. SOURCE DATA The following describes the data used in our analysis: Fund Balances Beginning fund balances from audited Village financials as of September 30, 2023 were provided by Village staff. Final Report www.scsengineers.com Page 6 Rate Revenues Rate revenues for FY 2024 were based on the FY 2024 Budget and conversations with Village staff. Beginning in FY 2025, rate revenues were calculated based upon prior year rate revenues, projected growth in accounts, and assumed rate adjustments. Other Revenues Interest earnings were calibrated based on projected FY 2024 earnings. All other non-rate revenues for FY 2024 were based on the FY 2024 Budget, an evaluation of historical earnings, and conversations with Village staff. In each subsequent year, these revenues were based upon the FY 2024 Projection and any assumed revenue escalation factors. Operating Expenses Expenses for FY 2024 were based on the FY 2024 Budget, historical spending, and conversations with Village staff. In each year thereafter, expenses were calculated using the FY 2024 Projection and assumed cost escalation factors. Debt Service Based on input from Village staff, the Village of Pinecrest has no current debt service and is not anticipating any new debt throughout the projection period. ASSUMPTIONS Customer Account Growth and Change in Usage Annual growth in customer accounts is based upon historical growth in billed units for FY 2018 – FY 2023 along with discussions with Village staff Cost Escalation Beginning in FY 2025, escalation factors were applied to each line item in the budget based upon historical trends, our industry experience, and discussions with Village staff. Interest Earnings Assumed interest rate for interest earnings was based on an evaluation of prior years’ earnings and discussions with Village staff. Reserve Policies Local government revenues are often cyclical in nature. Reserves are the portion of fund balances that are required to satisfy the Village’s projected cash flow needs during the budget year, future capital outlays, debt payments, and debt service requirements without impacting continued operations. These funds are intended for foreseen financial needs as well as to minimize risk Final Report www.scsengineers.com Page 7 associated with emergencies, economic downturns, and unforeseen events that could create fiscal hardship. In our experience, many utilities have policies to maintain approximately 3-6 months of Operations and Maintenance (O&M) expenses as a working capital reserve. This is also consistent with evaluation criteria from various ratings agencies for a healthy Utility. Therefore, minimum working capital reserve targets in this study were assumed to be 3 months of O&M expenses. RESULTS Based upon the data, assumptions, and conversations with Village staff described herein, our analysis concludes that the Village’s current stormwater fees would not be sufficient to meet its ongoing operating, debt service, capital, and working capital reserve requirements over the 10-year projection period if it executes all of its planned capital. However, the Village can avoid the need for revenue increases if it only executes an average of approximately $1.3 million of its capital improvement program projects in each year of the projection period. If the Village wants to pay for more of these projects, revenue increases would be required. Based on historical spending and conversations with Village staff, it was determined that this level of reduced spending would be adequate for the Village’s capital program in the near-term. In the event that revenues or operating expenses are realized at a higher or lower level, respectively, than projected, then Village may be able to accommodate additional capital spending in future years. The above image represents the City’s fund balance and anticipated capital spending should no revenue increases be implemented. Final Report www.scsengineers.com Page 8 4 STORMWATER FEE STRUCTURE ANALYSIS This section presents the analysis that was conducted during the Study. EVALUATION OF PROPERTY DATA After developing a financial plan for the Stormwater System, property data was collected from the MDPA and evaluated to determine the impervious square footage for each parcel in the Village. All impervious square footage, including impervious building square footage as well as impervious extra features, were combined to calculate a total impervious square footage for each parcel. For condominium parcels, a GIS mapping analysis was completed by SCS in 2019. This analysis was updated for this study to verify pervious and impervious area for existing condominiums, as well as gather data for new ones. The total impervious square footage of each condominium complex was then divided by the number of units in the condominium complex to determine the impervious square footage for each condominium dwelling unit. A second GIS mapping analysis was completed to identify which percentage of streets in Pinecrest are Village-maintained. This information was used to calculate Tier 1 of the fee, as all citizens use and have access to public roads. The property roll also demonstrated Pinecrest to have some vacant properties. After discussions with Village staff, it was concluded this did not represent an accurate number of vacant properties. Our GIS team then assisted in further analyzing Village properties, as the property roll is not always updated to reflect the most recent property use and/or development status. Folio numbers whose property uses reflect that they are vacant but are deemed to actually be a single-family residential unit, park, etc were updated according to the actual use for this analysis. STORMWATER USER FEE Once we determined the impervious square footage for all parcels in the Village, the Stormwater Fee Model (Model) was updated. In discussions with Village Staff and the Village’s attorney, we discussed various rate structures. The Village will utilize a two-tier methodology for this fee. The first tier represents a base fee to be paid by all parcels. This was calculated based on the impervious area of Village-maintained roads and government property as a percentage of the total impervious area of the Village. For Tier 2, the Village will utilize an Equivalent Billing Unit (EBU) to apportion costs to all of the parcels in the Village. This EBU methodology was preferred by the Village due to ease of understanding and administration. Under this methodology, 1.0 EBU equals 100 square feet. To calculate the total parcel EBUs, the total impervious square footage for each parcel was rounded down to the nearest 100 square feet and then divided by 100. The NRR was then divided by the total number of EBUs in the Village to get the fee per EBU. Calculations for the Tier 1 fee per parcel and the Tier 2 fee per EBU are shown in the table below: Final Report www.scsengineers.com Page 9 Throughout this process, Village staff was consulted in multiple interactive work sessions, during which the model was displayed and operated on a large viewing screen. Adjustments were made based upon input from Village staff before final fees were developed. Final Report www.scsengineers.com Page 10 5 RESULTS & RECOMMENDATIONS Revenue Sufficiency Analysis Results Based upon the data, assumptions, and conversations with Village staff described herein, our analysis concludes that the Village’s current stormwater fees are sufficient to meet its ongoing operating, debt service, capital, and working capital reserve requirements over the 10-year projection period. However, this assumes the Village only funds approximately 25% of its planned annual capital expenditures through FY 2029 and 13% in each year thereafter, representing an average of $1.3 million in annual capital spending. If the Village wants to fund more or all of these projects in full, this analysis should be updated and necessary revenue increases should be implemented. Stormwater Fee Structure Analysis Results Based upon the results of this Study, it is recommended that the Village bill Stormwater fees based on a two-tier system containing a Tier 1 fee per parcel and a Tier 2 fee based upon impervious area, as determined by the Equivalent Billing Units (EBUs) associated with each parcel. An EBU is defined as 100 square feet of impervious area. The rate schedule is presented below: Recommended Stormwater Fee Recommended FY 2025 Annual Stormwater Fee: Tier 1: $93.37 per parcel. Tier 2: $2.95 per Equivalent Billing Unit (EBU) No annual rate adjustments throughout the projection period. Equivalent Billing Unit (EBU): 1 EBU = 100 square feet of impervious area Billing Frequency: Bill annually on the property tax bill as a fee. EBU Calculation: Round down impervious square footage to nearest 100 square feet. Divide parcel impervious area by 100 square feet (1 EBU) = Total Parcel EBUs Fee Calculation: Tier 1 Fee ($93.37) + Tier 2 Fee (Total Parcel EBUs x $2.95) = Total FY 2025 Fee Vacant parcels will only pay Tier 1, unless they contain impervious area. Schedule 1 - Model Results Schedule 2 - Model Assumptions & Inputs Schedule 3 - Trial Balances as of 9/30/2023 Schedule 4 - Cash In Schedule 5 - Cash Out Schedule 6 - Pro Forma Schedule 7 - Capital Improvement Plan Schedule 8 - Borrowing Schedule 9 - Summary of Funds Management Services Village of Pinecrest, FL Stormwater Assesment Revenue Sufficiency Analysis Results as of May 17th, 2024 Schedule 1 - Model Results Schedule 2 - Model Assumptions & Inputs Assessed Units FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Total Growth % Change in Units 0.0% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% Cost Escalation Factors FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Salaries N/A 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% O&M N/A 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% R&M N/A 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% No Escalation N/A 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Interest & Borrowing Assumptions FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Interest Earnings on Fund Balances 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Working Capital Reserve Target FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Working Capital Reserve Target (% of O&M) 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% Schedule 3 - Trial Balances as of 9/30/2023 Stormwater Utility Fund Assets Cash Operating 3,235,448 $ Accounts receivable in-out 11,003 Accounts receivable Stormwater Fund 27,169 Local Government Investment Pool STIF-Plan A 278,444 Total Assets 3,552,065 $ Liabilities Accounts payable operational (343,873) $ Accounts payable in-out, year end (66,611) Total Liabilities (410,484) Total Available Fund Balance 3,141,581 $ Schedule 4 - Cash In FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Rate Revenue Assumptions Change in Units 0.0% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% Fee Revenues Stormwater Utility 1,445,211 $ 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 1,725,425 Total Fee Revenues 1,445,211 $ 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 1,725,425 Other Operating Revenues Grants, Miscellaneous 1,306,000 $ - - - - - - - - - - Total Other Operating Revenues 1,306,000 $ - - - - - - - - - - Interest Earnings Interest Earnings 127,569 $ 139,658 96,575 67,327 51,557 33,766 24,444 24,128 22,751 20,215 16,416 Total Interest Earnings 127,569 $ 139,658 96,575 67,327 51,557 33,766 24,444 24,128 22,751 20,215 16,416 Total Cash In 2,878,779 $ 1,610,658 1,593,861 1,591,395 1,602,901 1,612,884 1,631,832 1,660,281 1,688,165 1,715,387 1,741,841 Schedule 5 - Cash Out FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Personal Services Contractual services 88,944 $ 96,059 102,783 108,950 114,398 120,117 126,123 132,430 139,051 146,004 153,304 Contractual services in-kind, general fund 344,136 371,667 397,683 421,544 442,621 464,752 487,990 512,390 538,009 564,910 593,155 Subtotal Personal Services 433,079 $ 467,726 500,466 530,494 557,019 584,870 614,113 644,819 677,060 710,913 746,459 Personal Services Execution 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Total Executed Personal Services 433,079 $ 467,726 500,466 530,494 557,019 584,870 614,113 644,819 677,060 710,913 746,459 Fixed Operations & Maintenance Professional 145,914 $ 148,832 151,809 154,845 157,942 161,101 164,323 167,609 170,961 174,381 177,868 Communications and freight 389 396 404 412 421 429 438 446 455 464 474 Repairs and maintenance - Other 40,311 40,311 40,311 40,311 40,311 40,311 40,311 40,311 40,311 40,311 40,311 Other current charges & oblig. 1,282 1,307 1,333 1,360 1,387 1,415 1,443 1,472 1,502 1,532 1,562 MP Maintenance Costs 36,383 38,202 40,112 42,117 44,223 46,434 48,756 51,194 53,754 56,441 59,263 Subtotal Fixed Operations & Maintenance 224,278 $ 229,049 233,970 239,046 244,284 249,690 255,271 261,033 266,983 273,129 279,479 Fixed Operations & Maintenance Execution 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Total Executed Fixed Operations & Maintenan 224,278 $ 229,049 233,970 239,046 244,284 249,690 255,271 261,033 266,983 273,129 279,479 Cash Funded Capital Cash Funded Capital - $ 2,329,389 2,316,093 1,315,024 1,359,818 1,406,138 756,099 781,854 808,487 836,027 864,504 Total Cash Funded Capital - $ 2,329,389 2,316,093 1,315,024 1,359,818 1,406,138 756,099 781,854 808,487 836,027 864,504 Total Cash Out 657,357 $ 3,026,164 3,050,528 2,084,564 2,161,122 2,240,699 1,625,483 1,687,706 1,752,530 1,820,069 1,890,442 Schedule 6 - Pro Forma FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Fee Increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Stormwater Revenue 1,445,211 $ 1,445,211 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 Revenue from Growth - 25,790 26,286 26,782 27,277 27,773 28,269 28,765 29,261 29,757 30,253 Total Fee Revenues 1,445,211 $ 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 1,725,425 Plus: Other Operating Revenues 1,306,000 $ - - - - - - - - - - Operating Income 2,751,211 $ 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 1,725,425 Less: Operating Expenses Personal Services (433,079) $ (467,726) (500,466) (530,494) (557,019) (584,870) (614,113) (644,819) (677,060) (710,913) (746,459) Fixed Operations & Maintenance (224,278) (229,049) (233,970) (239,046) (244,284) (249,690) (255,271) (261,033) (266,983) (273,129) (279,479) Total Operating Expenses (657,357) $ (696,774) (734,436) (769,540) (801,303) (834,560) (869,384) (905,852) (944,043) (984,042) (1,025,938) Net Operating Income 2,093,854 $ 774,226 762,850 754,527 750,042 744,558 738,003 730,301 721,371 711,129 699,487 Plus (Less): Non-Operating Income in Debt Service Coverage Test Interest Earnings 127,569 $ 139,658 96,575 67,327 51,557 33,766 24,444 24,128 22,751 20,215 16,416 Total Non-Operating 127,569 $ 139,658 96,575 67,327 51,557 33,766 24,444 24,128 22,751 20,215 16,416 Net Cash Flow 2,221,422 $ 913,884 859,425 821,854 801,598 778,324 762,447 754,429 744,122 731,345 715,903 Fund Balance Balance at Beginning of Fiscal Year 3,141,581 $ 5,363,003 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 Net Cash Flow 2,221,422 913,884 859,425 821,854 801,598 778,324 762,447 754,429 744,122 731,345 715,903 Total Funds Available 5,363,003 6,276,887 4,806,922 3,312,684 2,799,258 2,217,764 1,574,073 1,572,403 1,534,671 1,457,529 1,337,406 Less: Planned Cash Funded Capital - (2,329,389) (2,316,093) (1,315,024) (1,359,818) (1,406,138) (756,099) (781,854) (808,487) (836,027) (864,504) Balance of Working Capital 5,363,003 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 472,901 Less: Working Capital Reserve Target (328,679) (348,387) (367,218) (384,770) (400,652) (417,280) (434,692) (452,926) (472,022) (492,021) (512,969) Surplus/Deficit of Working Capital 5,034,325 3,599,110 2,123,612 1,612,890 1,038,788 394,345 383,282 337,623 254,163 129,481 (40,067) Add Back: Working Capital Reserve 328,679 348,387 367,218 384,770 400,652 417,280 434,692 452,926 472,022 492,021 512,969 Balance at End of Fiscal Year 5,363,003 $ 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 472,901 Schedule 7 - Capital Improvement Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 U29-S1 - $ 3,465,625 - - - - - - - - - C100DN-1W2 - 5,545,000 - - - - - - - - - C100A-W3N3 - - 5,406,375 - - - - - - - - U35-S4 - - 1,524,875 - - - - - - - - C100 A-E-26 - - 1,732,813 - - - - - - - - Average MP Spending - - - 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 Total Projects - $ 9,010,625 8,664,063 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 4,757,209 Escalated and Executed Execution % 0.0% 25.0% 25.0% 25.0% 25.0% 25.0% 13.0% 13.0% 13.0% 13.0% 13.0% Escalation % 100.0% 103.4% 106.9% 110.6% 114.3% 118.2% 122.3% 126.4% 130.7% 135.2% 139.8% Total Executed Projects - $ 2,329,389 2,316,093 1,315,024 1,359,818 1,406,138 756,099 781,854 808,487 836,027 864,504 Schedule 8 - Borrowing Senior Lien Borrowing FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Cumulative Annual Payment - $ - - - - - - - - - - Subordinate Borrowing FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Cumulative Annual Payment - $ - - - - - - - - - - Short-Term Borrowing FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Cumulative Annual Payment - $ - - - - - - - - - - Schedule 9 - Summary of Funds Stormwater Utility Fund FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Balance at Start of FY 3,141,581 $ 5,363,003 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 Cash In 2,751,211 1,471,000 1,497,286 1,524,067 1,551,345 1,579,118 1,607,388 1,636,153 1,665,414 1,695,172 1,725,425 Interest 127,569 139,658 96,575 67,327 51,557 33,766 24,444 24,128 22,751 20,215 16,416 Cash Out (657,357) (696,774) (734,436) (769,540) (801,303) (834,560) (869,384) (905,852) (944,043) (984,042) (1,025,938) Planned Cash Funded CIP - (2,329,389) (2,316,093) (1,315,024) (1,359,818) (1,406,138) (756,099) (781,854) (808,487) (836,027) (864,504) Subtotal 5,363,003 $ 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 472,901 Less: Restricted Funds (328,679) $ (348,387) (367,218) (384,770) (400,652) (417,280) (434,692) (452,926) (472,022) (492,021) (472,901) Amount Available After Projects 5,034,325 $ 3,599,110 2,123,612 1,612,890 1,038,788 394,345 383,282 337,623 254,163 129,481 - Plus: Restricted Funds 328,679 $ 348,387 367,218 384,770 400,652 417,280 434,692 452,926 472,022 492,021 472,901 Available at End of FY 5,363,003 $ 3,947,497 2,490,830 1,997,660 1,439,440 811,626 817,974 790,549 726,184 621,502 472,901