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10/17/2016 AMENDED, WITH ATTACHMENT Monday, October 17, 2016 Regular Session – 7:00 p.m. Room 102 CALL TO ORDER REGULAR SESSION ROLL CALL PRAYER PLEDGE OF ALLEGIANCE CITIZEN PARTICIPATION (matters not on the Agenda) PRESENTATION LIFE SAVING AWARD – OFFICER JEFFREY KLUG CITY CLERK ANNOUNCEMENTS ALDERMEN ANNOUNCEMENTS AS AMENDED 10/14/2016 - UNFINISHED BUSINESS ITEM ADDED | CONSENT AGENDA 1. Extension of Conditional Use Permit for Assisted Living Project at 959-997 Lee Street, Des Plaines, IL, Case #15-064-CU-V 1a. ORDINANCE Z-26-16/An Ordinance Granting an Extension of the Conditional Use Permit for 995-997 Lee Street, Des Plaines 2. Amend Chapter 4 of Title 4 of the Des Plaines City Code to Mainstream the Investigation Process for Liquor Establishments 2a. ORDINANCE M-29-16/An Ordinance Amending Chapter 4 of Title 4 of the City of Des Plaines City Code 3. Amend Chapter 4 of Title 18 of the Des Plaines City Code to Re-Number the Classes for Liquor Licenses 3a. ORDINANCE M-30-16/An Ordinance Amending Section 4-18-1, “Fee Schedule”, of Chapter 18, “Schedule of Fees”, of Title 4, “Business Regulations”, of the City Code 4. Approve Elevator Inspection Contract Extension with “Elevator Inspection Services, Inc.” 4a. RESOLUTION R-157-16/A Resolution Approving a Second Amendment to the Agreement with Elevator Inspection Service Co., Inc. for the Performance of Elevator Inspection Services 5. Approve Assignment and Assumption Agreement with the Illinois Department of Natural Resources (IDNR) in Order to Expend Funds in Accordance with the FEMA Hazard Mitigation Grant 1935. Budgeted Funds – Grant Funded Projects with Reimbursement through FEMA Hazard Mitigation Grant 1935. 5a. RESOLUTION R-158-16/A Resolution Authorizing Execution of Assignment and Assumption Agreement with the Illinois Department of Natural Resources for the Acquisition and Demolition of Structures Located in the Flood Plain 6. Waive Competitive Bids and Approve Purchase of Firefighter Bunker Gear through the HGACBuy Purchasing Cooperative from W.S. Darley & Co. of Itasca, IL in a Not-to-Exceed Amount of $64,868.30 along with Prior Purchases of $9,956.94 for a Total Amount of $74,825.24. Budgeted Funds – Equipment Replacement Fund and Fire Department Emergency Services Uniform Line Item 6a. RESOLUTION R-159-16/A Resolution Approving the Purchase of Bunker Gear from W.S. Darley & Company 7. Approve Purchase of the Dacra Tick-IT! Software Upgrade in Order to Provide for Necessary Upgrades to the Administrative Hearing/Parking Ticket Program in the Not-to-Exceed Amount of $37,500. Budgeted Funds – Police Support Services – Computer Software. 7a. RESOLUTION R-160-16/A Resolution Authorizing the Procurement of Dacra Tick-It! Software from IT- Stability Systems, LLC 8. SECOND READING – ORDINANCE M-27-16/An Ordinance Prohibiting the Use of Groundwater as a Potable Water Supply by the Installation or Use of Potable Water Supply Wells or by any Other Method at 607 E. Oakton Street in the City of Des Plaines 9. SECOND READING – ORDINANCE M-28-16/Approve Ordinance Amending Chapter 9 of Title 1 of the City of Des Plaines City Code 10. Minutes/Special Meeting – September 29, 2016 (Budget Hearing, Session 1) END OF CONSENT AGENDA | COMMITTEE OF THE WHOLE 1. FINANCE & ADMINISTRATION – Alderman Don Smith, Chair a. Warrant Register in the Amount of $3,259,263.24 – RESOLUTION R-161-16 2. COMMUNITY DEVELOPMENT – Alderman Mike Charewicz, Chair a. Approve Business Assistance Grant for Interior Buildout of Amazing Breads and Cakes, LLC, 1460 Miner Street, Des Plaines, IL in the Amount of $18,625.00 – RESOLUTION R-162-16 3. ENGINEERING – Alderman Denise Rodd, Chair a. Presentation of S-Curve Pedestrian and Bicycle Feasibility Study Alternatives Analysis IF NO ACTION IS TAKEN UNDER NEW BUSINESS, THESE ITEMS WILL APPEAR ON THE FOLLOWING CONSENT AGENDA OR UNFINISHED BUSINESS. IF IT IS NECESSARY TO TAKE ACTION ON ANY OF THESE ITEMS THIS EVENING, THEY MUST BE REPORTED OUT BY THE COMMITTEE CHAIRMAN UNDER “NEW BUSINESS” UNFINISHED BUSINESS 1. Discussion and Presentation Regarding the Water/Sewer Fund (deferred from 10/13/2016 Special Meeting of the City Council) NEW BUSINESS: IF REPORTED OUT BY COMMITTEE 1. a. RESOLUTION R-161-16/Warrant Register in the Amount of $3,259,263.24 2. a. RESOLUTION R-162-16/Approve Resolution Approving a Business Assistance Interior Buildout Grant to Amazing Breads & Cakes, LLC for 1460 Miner Street 3. a. n/a MANAGER’S REPORT ALDERMEN COMMENTS MAYORAL COMMENTS ADJOURNMENT City of Des Plaines, in compliance with the Americans With Disabilities Act, requests that persons with disabilities, who req uire certain accommodations to allow them to observe and/or parti cipate in the meeting(s) or have questions about the accessibility of the meeting(s) or facilities, contact the ADA Coordinator at 391 -5486 to allow the City to make reasonable accommodations for these persons. 1420 Miner Street Des Plaines, IL 60016 P: 847.391.5300 desplaines.org Date: September 16, 2016 To: Michael G. Bartholomew, City Manager From: Dorothy Wisniewski, Assistant City Manager / Director of Finance Tim Oakley, Director of Public Works and Engineering Subject: Water/Sewer Fund Analysis Issue: The City Council requested an analysis regarding the water sewer fund and how the alternate water source impacts this fund financially. Analysis: The Water/Sewer Fund is considered an enterprise fund. Enterprise funds are established to account for the financing of self-supporting activities of the City that render services on a user-charge basis. As part of the City’s water allocation permit, the Illinois Department of Natural Resources states that all permittees adopt water rate structures based on metered water use and that water rate structures be developed that will discourage excessive water use. The Department also recommends that water rates reflect the full cost of water, including the long term cost to properly maintain and operate the water supply distribution system in such a manner as to keep system losses to a minimum (17 Ill. Adm. Code 3730). In 2011, the City commissioned a water/sewer rate study which was conducted by Baxter & Woodman, Inc. The purpose of the study was to ensure that the water and sewer utilities were self-sustaining. The study included an in-depth evaluation of the current and projected revenues and expenses of the water and sanitary sewer systems. The findings gathered from the study in 2011 indicated that the annual water and sewer costs have gradually outpaced revenues over a few years prior to the study due to inflation and deferral of rate increases since 2006. Each year that a rate increase was deferred, the gap between revenues and expenditures widened. The study indicated that rate increases were needed not only to reverse the operating spending deficit and preserve enterprise fund reserves, but to also provide for increased investment in equipment and infrastructure. Those increases would have allowed the water/sewer fund to maintain a stable financial position. Several recommendations were made within the study, such as modifications to the rate structure by including a minimum water and minimum sewer bill charges to all accounts regardless of consumption. Another recommendation was to include an escalator on charges over a 5 year period of 4% rather than just passing on the City of Chicago increases in order to keep pace with increased expenditures. A third recommendation was to optimize shut-off procedures by sending pre-shutoff notices within 30 days of non- payment regardless of the amount outstanding. Current practice is to send pre-shut off notices after being 2 cycles delinquent. While the study made recommendations on increasing the water rates, given the increases passed by the City of Chicago during fiscal years 2012 of 25%, 2013 of 15%, 2014 of 15% and 2015 of 15%, the City only Page 1 of 6 provided for an increase to the operational rate portion in 2012 of 15% with no further increases between 2013 through 2016. Prior to that timeframe, the last operational rate increase was in 2006 of 3.7%. As such, based on the continued increases to expenditures primarily due to inflation as well as aged infrastructure, the water/sewer fund depleted all of its reserves beginning in 2014 and had a negative balance position of $1.5M at the end of the 2014 fiscal year. As of December 31, 2015 the Water/Sewer fund had an unrestricted net position of negative $3.4 million. The expenditures of the water/sewer fund began outpacing the revenues in 2010, and the balance began declining in 2011. Due to an aging infrastructure and limited rate increases, the water/sewer fund expenditures continue to outpace revenues at a higher rate annually. The following chart provides a historical overview between the years of 2010 through 2015: 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual Beginning Balance 5,537,957 5,031,860 3,473,407 3,469,874 1,421,852 (1,497,649)* Revenues 11,906,919 11,293,637 14,172,242 13,825,722 14,762,310 14,661,781 Expenses (12,225,806) (12,763,270) (14,196,533) (15,894,502) (17,417,766) (22,751,951) Transfers (187,210) (88,820) 20,758 20,758 320,758 6,126,775 Prior Period Adjustment due to change in accounting principles (584,803) Ending Balance 5,031,860 3,473,407 3,469,874 1,421,852 (1,497,649) (3,461,044) In May 2016, the City completed construction of an alternate water source that allows for the purchase of water from the Northwest Water Commission (NWWC). The total cost of this infrastructure buildout was $9.0M of which $8.5M has been paid to date utilizing gaming revenues. The City began flowing water from NWWC in May 2016. The amount of water allowed from the NWWC is not to exceed 5 million gallons per day. The average usage on a daily basis is approximately 6.324 million gallons per day (MGD) and during the summer months the average demand is 7.4 MGD. As such the remaining demand is still supplied by the City of Chicago. During the months of May, June and July 2016, the City has saved approximately $731K by purchasing water through the NWWC. Once facilities are fully operational savings could reach a maximum of approximately $3M annually, depending on demand. Given the limited amount of funding allocated toward infrastructure projects over the past 10 years, the City will need to address the aging infrastructure improvements over the next several years. Past budget funding for this replacement and rehabilitation work has been minimal at roughly $1 million per year. Based on the water/sewer study conducted in 2011 as well as industry standard replacement and rehabilitation schedules for the various components of the system, the above target annual budget allocation of $3.3M toward infrastructure improvements has been created. This amount should be set aside for replacement and rehabilitation of the water system each year as part of the City’s Water System budget under the Capital Outlay section. It should be noted that this funding is necessary for maintaining the existing infrastructure. The following table provides a water system inventory along with a recommended annual target allocation based on 2011 Baxter Woodman study. Page 2 of 6 The need for water main replacement, the largest component of the water system, is evidenced by the number of water main breaks we experience each year. On the average, we have 100 main breaks per year that result in approximately $600,000 in water loss cost and $130,000 in overtime costs on an annual basis. The following chart provides details of the total water main breaks experienced between the years of 2010 through 2016: The City is in the process of replacing our aged water meters. As water meters age, they lose accuracy and under read the amount of water passing through them. The maximum recommended service life for a residential meter is 20 years and 12 years for larger commercial meters. The city’s average residential meter age is 28 years and 21 years for commercial meters. Based on regular meter testing, the City is losing approximately 3% of unaccounted for water. Year Number of Breaks Approximate Unaccounted Flow Meter Unaccounted Flow Water Maint Break Unaccounted Flow Estimated Water Loss Cost Actual Water Main Overtime Cost Estimated Total Cost 2010 110 8.88%3.00%5.88% 411,043 182,298 593,341 2011 96 10.90%3.00%7.90% 504,546 159,096 663,642 2012 170 8.73%3.00%5.73% 505,125 193,004 698,129 2013 141 7.41%3.00%4.41% 493,003 161,547 654,550 2014 105 7.50%3.00%4.50% 573,747 147,725 721,472 2015 80 11.90%3.00%8.90% 1,046,586 132,580 1,179,166 2016 92 1,203,574 61,582 1,265,156 Total 794 4,737,624 1,037,832 5,775,455 Page 3 of 6 The American Water Works Association guidelines for water system operation recommends less than 25 water main breaks per year per 100 miles of pipe. Given our 221 miles of pipe, our break history should be 55 breaks per year under the guideline. Part of the reason why the City is experiencing a high level of water main breaks is due to the aging infrastructure. As you will note in the table below, close to 60% of the total miles of water mains are over 40 years old and 20% are over 60 years old. The cost of replacing just the 42 miles of water main which are over 60 years old is estimated at $38.9M. In addition to the above costs, there is movement at the Illinois Environmental Protection Agency to add additional lead / copper testing requirements and possible lead service line replacement mandates for water systems. The costs associated with this is unknown at this time but any new regulations will affect our Water System budget. Based on the City Councils request to provide options for the potential water rate reduction, the following options are presented for discussion which yield the financial results as indicated in Water/Sewer Fund Balance Chart below. Additionally, it is important to note that the 2017 Projection assumed the Proposed Budget numbers which will be discussed during budget deliberations. Option #1 Assumptions: No increase to the rates are proposed and the capital improvements are funded through the water/sewer fund. Results: The deficit in the water/sewer fund continues to increase and by 2022 is projected to be at a negative $16.5M with continued deficit increases years beyond. Option #2 Assumptions: No increase to the rates are proposed and the capital improvements are 100% funded through a transfer from the gaming fund. Results: Based on this option, the fund has a positive projected fund balance of $441K in year 2022. It is important to note that with this option approximately 40% of gaming revenues received would be utilized towards capital improvement projects within the water/sewer fund. Option #3 Assumptions: Should the City of Chicago increase the water rates as recently proposed in the amount of 7% over the next 3 years, the rates are assumed to be passed on to the residents. In terms of capital projects, those are assumed to be funded at 50% from gaming revenues 50% from water/sewer fund revenues. Results: Based on this option, the fund has a positive projected fund balance of $175K in year 2024. It is important to note that with this option approximately 20% of gaming revenues received would be utilized towards capital improvement projects within the water/sewer fund. Option #4 Assumptions: This option assumes a 25% sharing of the savings achieved by purchasing water from the Northwest Water Commission. No increase from the City of Chicago has been assumed. In terms of capital Page 4 of 6 projects, those continue to be funded through gaming funds at the 100% level as mentioned in Option #2 above. Results: Based on this option, while the fund begins to move toward a positive direction, in year 2023 the operational expenses exceed the revenues and therefore the fund never reaches a positive balance. All options assume a minimal 2% increase to the operating expenses and a 1% increase to water cost and capital infrastructure projects. In terms of capital infrastructure projects, it is important to note that the initial funding level used is $3.3M which was estimated back in 2011. The following chart graphically depicts each of the above options and the year in which the water/sewer fund is able to reverse the negative trend in declining balances which is only possible in Options #2 and #3. Additionally, while the commercial/industrial utility accounts comprise 5.7% of the total utility billing accounts, they account for 34.1% of the annual consumption. Residential properties account of 94.3% of the total utility billing accounts and 65.9% of the average annual consumption. As such, any decrease in water rates would be realized proportionately based on consumption. Conclusion: The above information is provided for City Council discussion. Attachments: Attachment 1: Water/Sewer Fund Financial Projection (10,000,000) (8,000,000) (6,000,000) (4,000,000) (2,000,000) - 2,000,000 4,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Water/Sewer Fund Balance Option #1 Option #2 Option #3 Option #4 Page 5 of 6 20 1 6 2 0 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 Pr o j e c t i o n B u d g e t P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n Op t i o n   # 1 Re v e n u e s 14 , 5 5 1 , 0 0 0                14 , 6 0 4 , 0 0 0              14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0              14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        Tr a n s f e r s 4, 6 2 0 , 7 5 8                    Op e r a t i n g   E x p e n s e s 6, 8 2 7 , 8 2 6                    6, 9 6 4 , 3 8 3                  7, 1 0 3 , 6 7 0                7, 2 4 5 , 7 4 4                7, 3 9 0 , 6 5 8                7, 5 3 8 , 4 7 2                  7, 6 8 9 , 2 4 1            7, 8 4 3 , 0 2 6            7, 9 9 9 , 8 8 6            8, 1 5 9 , 8 8 4            Wa t e r   C o s t   ( A v g   I n c r e a s e ) 6, 3 0 0 , 0 0 0                    6, 0 1 9 , 2 9 7                  6, 0 7 9 , 4 9 0                6, 1 4 0 , 2 8 5                6, 2 0 1 , 6 8 8                6, 2 6 3 , 7 0 5                  6, 3 2 6 , 3 4 2            6, 3 8 9 , 6 0 5            6, 4 5 3 , 5 0 2            6, 5 1 8 , 0 3 7            Ca p i t a l   I m p r o v e m e n t s 4, 6 2 0 , 7 5 8                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Ba l a n c e (7 , 0 5 4 , 6 3 3 )    (5 , 6 3 1 , 4 5 9 )                  (7 , 3 2 9 , 4 7 2 )                (9 , 2 6 0 , 1 4 9 )              (1 1 , 4 2 7 , 2 0 9 )          (1 3 , 8 3 4 , 4 3 7 )          (1 6 , 4 8 5 , 6 8 5 )            (1 9 , 3 8 4 , 8 6 9 )      (2 2 , 5 3 5 , 9 7 8 )      (2 5 , 9 4 3 , 0 6 8 )      (2 9 , 6 1 0 , 2 6 8 )      Op t i o n   # 2 Re v e n u e s 14 , 5 5 1 , 0 0 0                14 , 6 0 4 , 0 0 0              14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0            14 , 6 0 4 , 0 0 0              14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        14 , 6 0 4 , 0 0 0        Tr a n s f e r s 4, 6 0 0 , 0 0 0                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Op e r a t i n g   E x p e n s e s 6, 8 2 7 , 8 2 6                    6, 9 6 4 , 3 8 3                  7, 1 0 3 , 6 7 0                7, 2 4 5 , 7 4 4                7, 3 9 0 , 6 5 8                7, 5 3 8 , 4 7 2                  7, 6 8 9 , 2 4 1            7, 8 4 3 , 0 2 6            7, 9 9 9 , 8 8 6            8, 1 5 9 , 8 8 4            Wa t e r   C o s t   ( A v g   I n c r e a s e ) 6, 3 0 0 , 0 0 0                    6, 0 1 9 , 2 9 7                  6, 0 7 9 , 4 9 0                6, 1 4 0 , 2 8 5                6, 2 0 1 , 6 8 8                6, 2 6 3 , 7 0 5                  6, 3 2 6 , 3 4 2            6, 3 8 9 , 6 0 5            6, 4 5 3 , 5 0 2            6, 5 1 8 , 0 3 7            Ca p i t a l   I m p r o v e m e n t s 4, 6 0 0 , 0 0 0                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Ba l a n c e (7 , 0 5 4 , 6 3 3 )    (5 , 6 3 1 , 4 5 9 )                  (4 , 0 1 1 , 1 3 9 )                (2 , 5 9 0 , 2 9 9 )              (1 , 3 7 2 , 3 2 8 )              (3 6 0 , 6 7 5 )                    44 1 , 1 4 9                          1, 0 2 9 , 5 6 5            1, 4 0 0 , 9 3 4            1, 5 5 1 , 5 4 6            1, 4 7 7 , 6 2 6            Op t i o n   # 3 Re v e n u e s 14 , 5 5 1 , 0 0 0                15 , 6 0 4 , 0 0 0              16 , 1 5 4 , 0 0 0            16 , 2 9 1 , 5 0 0            16 , 4 3 0 , 3 7 5            16 , 5 7 0 , 6 3 9              16 , 7 1 2 , 3 0 5        16 , 8 5 5 , 3 8 8        16 , 9 9 9 , 9 0 2        17 , 1 4 5 , 8 6 1        Tr a n s f e r s 4, 6 2 0 , 7 5 8                    1, 6 5 9 , 1 6 7                  1, 6 7 5 , 7 5 8                1, 6 9 2 , 5 1 6                1, 7 0 9 , 4 4 1                1, 7 2 6 , 5 3 5                  1, 7 4 3 , 8 0 1            1, 7 6 1 , 2 3 9            1, 7 7 8 , 8 5 1            1, 7 9 6 , 6 4 0            Op e r a t i n g   E x p e n s e s 6, 8 2 7 , 8 2 6                    6, 9 6 4 , 3 8 3                  7, 1 0 3 , 6 7 0                7, 2 4 5 , 7 4 4                7, 3 9 0 , 6 5 8                7, 5 3 8 , 4 7 2                  7, 6 8 9 , 2 4 1            7, 8 4 3 , 0 2 6            7, 9 9 9 , 8 8 6            8, 1 5 9 , 8 8 4            Wa t e r   C o s t   ( A v g   I n c r e a s e ) 6, 3 0 0 , 0 0 0                    6, 1 3 5 , 2 2 5                  6, 3 2 8 , 3 1 3                6, 3 9 1 , 5 9 6                6, 4 5 5 , 5 1 2                6, 5 2 0 , 0 6 7                  6, 5 8 5 , 2 6 8            6, 6 5 1 , 1 2 1            6, 7 1 7 , 6 3 2            6, 7 8 4 , 8 0 8            Ca p i t a l   I m p r o v e m e n t s 4, 6 2 0 , 7 5 8                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Ba l a n c e (7 , 0 5 4 , 6 3 3 )    (5 , 6 3 1 , 4 5 9 )                  (4 , 7 8 6 , 2 3 3 )                (3 , 7 3 9 , 9 7 4 )              (2 , 7 7 8 , 3 3 0 )              (1 , 9 0 3 , 5 6 7 )              (1 , 1 1 8 , 0 0 2 )                (4 2 4 , 0 0 7 )                17 5 , 9 9 6                  67 9 , 5 2 9                  1, 0 8 4 , 0 5 8            Op t i o n   # 4 Re v e n u e s   ( 2 5 %   S a v i n g s ) 14 , 5 5 1 , 0 0 0                13 , 8 5 4 , 0 0 0              13 , 8 5 4 , 0 0 0            13 , 8 5 4 , 0 0 0            13 , 8 5 4 , 0 0 0            13 , 8 5 4 , 0 0 0              13 , 8 5 4 , 0 0 0        13 , 8 5 4 , 0 0 0        13 , 8 5 4 , 0 0 0        13 , 8 5 4 , 0 0 0        Tr a n s f e r s 4, 6 2 0 , 7 5 8                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Op e r a t i n g   E x p e n s e s 6, 8 2 7 , 8 2 6                    6, 9 6 4 , 3 8 3                  7, 1 0 3 , 6 7 0                7, 2 4 5 , 7 4 4                7, 3 9 0 , 6 5 8                7, 5 3 8 , 4 7 2                  7, 6 8 9 , 2 4 1            7, 8 4 3 , 0 2 6            7, 9 9 9 , 8 8 6            8, 1 5 9 , 8 8 4            Wa t e r   C o s t   ( A v g   I n c r e a s e ) 6, 3 0 0 , 0 0 0                    6, 0 1 9 , 2 9 7                  6, 0 7 9 , 4 9 0                6, 1 4 0 , 2 8 5                6, 2 0 1 , 6 8 8                6, 2 6 3 , 7 0 5                  6, 3 2 6 , 3 4 2            6, 3 8 9 , 6 0 5            6, 4 5 3 , 5 0 2            6, 5 1 8 , 0 3 7            Ca p i t a l   I m p r o v e m e n t s 4, 6 2 0 , 7 5 8                    3, 3 1 8 , 3 3 3                  3, 3 5 1 , 5 1 6                3, 3 8 5 , 0 3 1                3, 4 1 8 , 8 8 2                3, 4 5 3 , 0 7 1                  3, 4 8 7 , 6 0 1            3, 5 2 2 , 4 7 7            3, 5 5 7 , 7 0 2            3, 5 9 3 , 2 7 9            Ba l a n c e (7 , 0 5 4 , 6 3 3 )    (5 , 6 3 1 , 4 5 9 )                  (4 , 7 6 1 , 1 3 9 )                (4 , 0 9 0 , 2 9 9 )              (3 , 6 2 2 , 3 2 8 )              (3 , 3 6 0 , 6 7 5 )              (3 , 3 0 8 , 8 5 1 )                (3 , 4 7 0 , 4 3 5 )          (3 , 8 4 9 , 0 6 6 )          (4 , 4 4 8 , 4 5 4 )          (5 , 2 7 2 , 3 7 4 )          Wa t e r / S e w e r   F u n d   F i n a n c i a l   P r o j e c t i o n Attachment 1 Page 6 of 6