Evansville Water and Sewer Utility Customer Survey Prepared by: SMARI.LLC Summary of Quantitative Research Analysis 2014

Research background 2  The Evansville Water and Sewer Utility (EWSU) provides service for approximately 60,000 customers in the Evansville area. EWSU strives to provide customers with high quality, safe, dependable water and sewer service at rates which encourage economic development.  EWSU’s system includes 1,000 miles of water lines and 800 miles of combined and separated sanitary sewer lines, one water treatment plant, two wastewater treatment plants and 90 lift stations.  EWSU is in the midst of several major initiatives to improve the aging water and sewer systems and enhance the services provided to customers. Among these initiatives are a new automated trash and recycling program; new online bill payment options; the Renew Evansville plan designed to comply with the Clean Water Act and federal and state mandates; water and sewer rate increases; and SmartCity, a wireless water meter reading system.  To measure the impact of these various initiatives upon customers’ perceptions and expectations of EWSU and determine the optimal go-forward communication strategies, EWSU, working in cooperation with Borshoff, identified the need for a benchmark Community Perceptions Study. −This initial research effort will serve as the foundation for measuring shifts in customer awareness, attitudes and perceptions over time as initiatives and communication efforts are instituted. EWSU Customer SurveyOverview

EWSU Customer Survey 3 Research methodology:  In all, 1,023 surveys were completed between February 3 and February 24, 2014, via a self-administered online survey to yield a data precision of +/- 5 % at the 90% confidence level.  Data were weighted by age and education level to correlate with area demographics. Research objectives and methodology Provide a benchmark assessment of customer awareness, understanding and perceptions regarding key issues surrounding EWSU services and initiatives; Provide a benchmark Isolate overall image Determine customer attitudes Explore awareness Measure brand recognition Explore customer opinions Isolate the current overall image of EWSU in the minds of customers, taking into consideration perceptions relative to management of resources, efforts to address water pollution, communications, etc.; Determine customer attitudes and perceptions of current water and sewer rates as well as their understanding of planned rate increases; and Explore awareness, understanding, perceptions and expectations of Renew Evansville among current EWSU customers; Measure customer recognition of the Renew Evansville brand and communication efforts; and Explore customer opinions about communication from EWSU in general and communication regarding specific efforts such as Renew Evansville.

4 Respondent profiles* EWSU Customer SurveyOverview * Totals of responses may add to slightly below or above 100% due to rounding Which best describes you? Rent or own home? Services currently receiving from EWSU?

5 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: Overall, how satisfied are EWSU customers? Marginally satisfied. Just over half [51%] of customers indicated being satisfied with EWSU. Conversely, approximately 3 in 10 [33%] expressed being dissatisfied.

6 Overall, EWSU customers reported mixed levels of satisfaction. Q1. Overall, how satisfied are you as a customer of the Evansville Water & Sewer Utility? EWSU Customer SurveyOverall satisfaction Overall satisfaction – All customers N=1023 Satisfaction Dissatisfaction Dissatisfaction is almost exclusively driven by the perception that sewer and water rates are high.

7 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: For which attributes was EWSU regarded in the most favorable manner? Customers expressed the most positive sentiment toward EWSU for Providing safe and reliable water services to customers. For which attributes was EWSU regarded in the least favorable manner? According to customers, EWSU fared least favorably for Being a financially sound organization and Planning for the future growth and needs of Evansville.

8 Just over 5 in 10 respondents expressed favorable opinions of EWSU with respect to the utility providing safe and reliable water and services to customers Q2. How would you rate the Evansville Water & Sewer Utility on the following factors? EWSU Customer SurveyOverall satisfaction N=1023

9 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: What percentage of customers stated they had heard of the Federal Mandate? What are expectations of this mandate? Approximately 6 in 10 customers [61%] stated they had heard of the Federal Mandate. Their main expectations regarding what the Federal Mandate will address include: − Sewer pollution going into Ohio River and Pigeon Creek [66%] − Customer rates [59%] − Combined sewer overflows [56%] − Wastewater treatment plants [54%] − Planning for future population growth [53%]

10 EWSU Customer SurveyFederal mandate expectations Q6b. As part of the mandate, Evansville has submitted a plan to the Environmental Protection Agency. How many years do you think it will take for the Evansville Water & Sewer Utility and the City of Evansville to fully implement this plan? Many customers indicated having some prior knowledge of the federal mandate plan with sewer pollution expected to be the main issue addressed Q6a. You may not be familiar with the details of the plan; however what would you expect the City of Evansville's plan to address under the federal mandate? Select all that apply. Q5. Have you heard about the federal mandate and plan prior to this survey? Had you heard about the federal mandate plan prior? How many years do you think it will take for the EWSU and City of Evansville to fully implement this plan? N=1023

11 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: What percentage of customers recalled seeing or hearing communication about Renew Evansville? 4 in 10 customers [38%] cited having seen or heard something with respect to Renew Evansville. To date, 6 in 10 [62%] have not heard of or seen anything regarding Renew Evansville.

12 EWSU Customer SurveyLogo recall Nearly 4 in 10 customers indicated hearing or seeing something about Renew Evansville Q4b. To the best of your knowledge, what is Renew Evansville? N=149 Verbatim comments from customers regarding Renew Evansville: “It's upgrading Evansville’s water and sewer system.” “They are redoing the draining and sewage pipes.” “It’s replacing the antiquated water and sewer lines in the city.” “It’s making Evansville greener, safer and efficient.” “I have no idea. Have never heard of it. Maybe about a new sewer system.” “A massive capital project to update the city sewer system.”

13 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: How do EWSU sewer and water rates compare with other cities? More than half of respondents [54%] expressed opinions that EWSU water rates are higher than other cities. Just over 6 in 10 respondents [62%] expressed opinions that EWSU sewer rates are higher than other cities.

14 Q3a. How would you think that the EWSU water rates compare with other cities? EWSU Customer SurveyWater & sewer rates | bill payment How does EWSU water rates compare with other cities of comparable size? Q3b. How would you think that the EWSU sewer rates compare with other cities? How does EWSU sewer rates compare with other cities of comparable size? Just over half of respondents expressed opinions that EWSU water rates are higher than other cities N=1023 Just over 6 in 10 respondents expressed opinions that EWSU sewer rates are higher than other cities Over half of customers see EWSU as more expensive

15 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: How are customers currently paying their EWSU bills? The majority of customers [54%] indicated paying their bills via mail. This holds true for almost all age groups. Other methods used frequently for payment are in person at either EWSU offices [27%] or at a designated pay station [30%]. Regardless of age, less than 2 in 10 customers indicated using automatic recurring payments to pay their EWSU bill. 30% of customers under the age of 44 stated making their EWSU payments online with a credit or debit card. Conversely, only 2 in 10 customers over the age of 44 indicated doing so.

16 EWSU Customer Survey Customers indicated utilizing mail as the primary method for paying their EWSU bill. Payment in EWSU offices and pay stations used with less frequency Q8. Which of these methods have you used to pay your bills from the EWSU? Select all that apply. Q7. To your knowledge, how can you currently pay your bills from Evansville Water & Sewer Utility? Select all that apply. Information on monthly bill60% News stories on television50% News stories in newspapers, magazines, etc. 44% Other mailers24% News stories on radio18% News stories on online media14% Social media8% 7% Website5% Other4% Public meetings3% Fliers at pay stations1% Telephone calls1% Text alerts1% How do you currently receive information about EWSU? Q9. How do you currently receive information about the EWSU? Select all that apply. Water & sewer rates | bill payment Other: Customers indicate making e-payments through their bank, utilizing drop boxes. N=1023

17 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: What potential services generate the greatest interest among EWSU customers? A variety of potential services offered by EWSU were considered to be of interest to customers. These include: − Budget billing plan [33%] − Paperless billing [33%] − Monthly newsletters with tips for homeowners [33%]

18 Strategic conclusions EWSU Customer SurveyOverview Strategic Question: How best should EWSU communicate with its customers? Nearly half of customers [47%] indicated a preference for receiving information from EWSU on their monthly bill. was also referenced as a preferred means of communication from EWSU [30%].

19 EWSU Customer Survey Customers would most like to receive information from EWSU on their monthly bill and by Q10. Please select the top 3 ways you would prefer to receive information from the EWSU, with the one you select first being most preferred. N=1023 Water & sewer rates | bill payment

20 EWSU Customer SurveyPotential service offerings A variety of potential services offered by EWSU were considered to be of interest to respondents. In particular, a budget billing plan, paperless billing and monthly newsletters with tips for homeowners garnered the strongest interest Q11. Below are potential services that could be offered by EWSU in the future. Please select which of these services, if any, would be of interest to you. Select all that apply. N=1023