1. Resolution 2014R-099 December 18, 2014

2.  Board Direction ◦ Establish a monthly cost-of-service rate of $172.28 1 for FY 2015 and utilize a General Fund Transfer-in 2 of $63,763 to meet the debt service coverage policy of 1.25; and ◦ Establish a monthly cost-of-service rate of $195.37 1 for FY 2016 and utilize a General Fund Transfer-in 3 of $74,947 to meet the debt service coverage policy of 1.25; and ◦ Apply the balance of the subsidy to the Cave Rock/Uppaway reserves to address system reinvestment of short-lived assets. 1 Assumes a typical ¾” residential service connection 2 A $150,000 General Fund Transfer-in was budgeted for FY 2015 3 The proposed $112,500 General Fund Transfer-in for FY 2016 will be addressed as part of the budget process 2

3. CAVE ROCK/UPPAWAY Current Vs. Proposed Cost-of-Service Rate 3 Current Monthly Rate FY 2014 Cost-of-Service Rate FY 2015 Cost-of-Service Rate FY 2016 Annual Rate Adjustment0.00%-14.71%13.14% Average Monthly Bill$202.46$172.68$195.37 General Fund Transfer-in N/A $63,763$74,947 Debt Coverage1.191.25 Ending Fund Balance 1 $877,529$1,031,981$1,135,449 Minimum Target$360,397$358,019$364,203 1 Combined operating, emergency and capital reserves, includes balances from the General Fund Transfer-in(s) as of June 30, 2014, June 30, 2015 and June 30, 2016, respectively

4.  Adopt Resolution 2014R-099 establishing monthly water rates, private fire service charges and connection charges for the Cave Rock/Uppaway Water System for Fiscal Years 2015 and 2016, as presented. 4