1.Projects 2.Rates 3.Projects and Rates Today’s Presentation:

Design Capacity 5.3 MGD Current Daily Production 4.1 MGD Current Daily Production 77% of Capacity KDOW Limit = 85% Capacity 4.5 MGD Available Capacity400,000 Gallons per Day At 1% Population Growth Year8 Years to Restrictions Design & Construction = 3 Years WATER TREATMENT PLANT

Max Daily Production 95% or Greater in 7 of 11 Years Max Daily Production 100% or 101% in 3 of 11 Years Water Rationing Possible in Drought Average Age of Plant: 39.6 Years Depreciation Schedule for Plant: 15 / 20 / 40 Years Plant is Prone to Flooding Water Quality Increases = Plant Capacity Decreases

Rates

Spending: Amount and Timing Interest and Payback Period  KIA Loan = 20 Years at 2%  Bonds = 25 Years at 6% Reserves: 60 Day Operating Reserve

Debt Service Ratio = 6 Tier Rate Schedule 3 Tier Schedule Cash Available to Pay Debt Debt Payment Due

Number of Customers Use CF/Month

Revenue ($/Year) Total Use CF/Month

Current Tiered Rate Schedule

100 gal $ Residential 50 $0.60 $20.00 $0.70 $35.00 $ gal 50 Residential 50 $0.70 = 1.75 Industrial Increase $0.60 = 1.17 Residential Increase 17% $70.00 $50.00 = 1.40 Overall Revenue Increase 40%

Proposed Condensed Rate Schedule

3 Scenarios

SCENARIO 1

SCENARIO 2

SCENARIO 3

SCENARIO 1 SCENARIO 2 SCENARIO 3

SCENARIO 1 SCENARIO 2 SCENARIO 3