Approval of FY-2016 Capital Budget and the 10-Year Capital Plan February 11, 2015

Table of Contents A. Executive Summary B. FY-2016 Capital Budget C. Projected 10-Year Capital Plan ( )

After January 14, 2015 Workshop  Deleted the Edgewater Club Pump Station ($1,100,000) from FY-2016 – funded in FY-2015 After January 22, 2015 LRPC Meeting  Added Enterprise Software Replacement Project ($1,700,000) to FY-2017 CIP Updates

The FY-2016 Capital Budget totals $17,735,000 which is 21% less than projected last year All projects evaluated and recommended based on one or more of these four criteria:  Compliance with regulatory requirements  Efficiency leading to future operating or capital savings  Capacity increases necessary for current or future flows  Growth in the number of customers served The majority of work planned for FY-2016 is to rehabilitate or replace existing infrastructure as part of asset management and addressing aging infrastructure FY-2016 Capital Budget

FY-2016 Project Distribution by Project Type FY-2016 CIP By Project TypePercentage$ Amount# Projects Rehab or Replace Assets77%$13,615,00018 Enhancement16%$2,840,0005 Expansion7%$1,280,0006 TOTAL100%$17,735,00029

FY-2016 Project Distribution By Project Area FY-2016 CIP By Project Area Percentage$ Amount# Projects Water Distribution42%$7,525,0006 Wastewater Collection34%$6,075,00011 Water Treatment11%$1,995,0005 Other6%$1,120,0005 Wastewater Treatment6%$1,020,0002 TOTAL100%$17,735,00029

Projected 10-Year FY-2016 to FY-2025 CIP The Projected Ten Year FY-2016 to FY-2025 Capital Improvements Plan totals $306,265,000 Two projects comprise over 53% of this projected amount:  Southside WWTP Rehabilitation and Upgrade  Construction of New Raw Water Line with LCFWSA ILA The exact timing to these two large projects is dependent upon customer growth

10-Year CIP Distribution By Project Type Ten Year CIP By Project TypePercentage$ Amount# Projects Rehab or Replace Assets78%$238,245,00042 Expansion19%$58,230,00011 Enhancement3%$9,790,00015 TOTAL100%$306,265,00068

10-Year CIP Distribution By Project Area Ten Year CIP by Project AreaPercentage$ Amount# Projects Wastewater Treatment45%$137,850,00012 Wastewater Collection22%$65,875,00023 Water Treatment15%$45,585,00016 Water Distribution15%$45,585,00011 Other4%$11,370,0006 TOTAL100%$306,265,00068

Significant Projects in 10-year CIP FY-16 to FY-2025 CIPTen Year TotalPercentage of Total Budget Running Cumulative Total of Budget Percentage Southside WWTP Rehabilitation and Upgrade $130,750, % Construction of New Raw Water Line with LCFWSA ILA $32,000, %53.14% Find It, Fix It Methodology Gravity Sewer Rehabilitation (AMP) $23,500, %60.81% Comprehensive Meter Replacement Program $19,910, %67.31% Sewer Emergency Repair$10,150, %70.63% Top 5 projects by cost equal 70% of the total 10-year budget.

Budget Calendar  Wednesday, January 14, 2015 FY-16 CIP Board Work Session  Thursday, January 22, 2015 FY-16 CIP Approval by Long-Range Planning Committee  Wednesday, February 11, 2015 Regular Board Meeting FY-16 CIP Recommended for Approval  Wednesday, March 11, 2015 Regular Board Meeting FY-16 CIP Recommended for Approval