1. Etowah Water & Sewer Authority 6th Annual Workshop FY14 PLANNING WORKSHOP
“The Road Less Taken”
October 1-2, 2013

2. MEETING TOPICS Tuesday - October 1, 2013 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

3. MEETING TOPICS Wednesday, October 2, 2013
“The Road Less Taken“ Discussion
Yearly Review

4. INTRODUCTION PRIMARY PURPOSES: ACTION ITEMS:
Present recommended FY14 Operating Budget
Present recommended FY14 Ten Year Capital Improvements Program
Present FY14 recommended Comprehensive Funding Program
Strategic planning for future
ACTION ITEMS:
Work Session & Board Meeting – November 2013

5. INTRODUCTION PRIMARY GOALS FOR PLANNING HORIZON:
Strengthen the Authority’s service delivery
Enhance operating revenue to cover operating expenses and debt service
Reduce the impact of economic variability on the Authority (current & future)
Respond to growth as it returns to Dawson County

6. INTRODUCTION “Two roads diverged in a yellow wood,…
I took the one less traveled by, And that has made all the difference.”
Robert Frost

7. MEETING TOPICS Tuesday – October 1, 2013 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

8. GROWTH
INDICATORS

9. GROWTH INDICATORS Water Customer Growth Active Accounts
*As of September 1, 2013

10. Wastewater Customer Growth
GROWTH INDICATORS
Wastewater Customer Growth
Active Accounts
*As of September 1, 2013

11. GROWTH INDICATORS Water Meters Sold 235 204 105 29 28 28
*As of September 1, 2013

12. New Wastewater Accounts
GROWTH INDICATORS
New Wastewater Accounts
*As of September 1, 2013

13. Water Distribution System Summary
GROWTH INDICATORS
Water Distribution System Summary

14. Wastewater Collection System Summary
GROWTH INDICATORS
Wastewater Collection System Summary
Totals do not include 6.28 miles of gravity sewer constructed by Dawson County and maintained by Etowah Water & Sewer Authority.

15. Utilities Protection Center Locates
GROWTH INDICATORS
Utilities Protection Center Locates
* As of September 1, 2013

16. Operating Revenue Profile
GROWTH INDICATORS
Operating Revenue Profile
$4.38
$4.03
$4.04
$3.54
$3.26
$3.14
Millions of Dollars

17. GROWTH INDICATORS Water Billing Volumes
*Projected FY13 Billing Volumes

18. Wastewater Billing Volumes
GROWTH INDICATORS
Wastewater Billing Volumes
*Projected FY13 Billing Volumes

19. Water Comparison Profile*
GROWTH INDICATORS
Water Comparison Profile*
: Residential
: Commercial
Water Use
Water Customers
Active Accounts
*As of September 1, 2013
Water Revenue

20. Wastewater Comparison Profile*
GROWTH INDICATORS
Wastewater Comparison Profile*
: Residential
: Commercial
Sewer Customers
Sewer Use
Active Accounts
*As of September 1, 2013
Sewer Revenue

21. Balanced Customer Base Ten Largest System Customers
GROWTH INDICATORS
Balanced Customer Base
Ten Largest System Customers
Name % of Billing Revenue
Dawson Leased LLC %
Chelsea GCA Realty (Outlet Mall) %
Impulse Manufacturing %
Walmart %
Riverwood Properties %
Applebees %
Celeste Properties %
Super 8 Motel %
Ryans Family Steakhouse %
North Georgia Premium Outlet %
* As of September 1, 2013

22. GROWTH INDICATORS Customer Base History Year End Customer
Billing Percentage
2008
Dawson Leased LLC (Apartments)
3.80%
2009
4.29%
2010
3.98%
Chelsea GCA Realty (Outlet Mall)
3.37%
3.39%
2.47%
Walmart
1.78%
1.81%
1.55%
Riverwood Properties (Moe’s)
1.10%
Riverwood Properties (Moe’s)
1.28%
1.39%
Bubbles Carwash
1.04%
Celeste Properties (White Interiors)
0.84%
1.01%
Best Western
0.85%
0.69%
Ryan’s Family Steakhouse
0.72%
Ready Mix USA
0.51%
Southern Catholic College
0.63%
Applebee's
FCC Inc
0.48%
Dawson County Park and Rec.
0.64%
Rare Hospitality (Longhorns)
0.61%
Ernst Cobb County Inc
0.38%
Shade Tree Trailer Park
Ruby Tuesdays
0.54%
Lumpkin County Water Authority
0.27%
0.36%
Kroger
2011
4.04%
2012
4.52%
2013*
5.78%
2.55%
3.08%
3.28%
1.21%
1.36%
Impulse Manufacturing
1.63%
Riverwood Properties (Moe's)
1.17%
1.41%
1.16%
Racetrac Petroleum
0.89%
1.33%
0.73%
Dawson Co. Board of Ed
0.87%
Home Depot
0.75%
0.79%
Super 8 Motel
North GA Premium Carwash
0.52%
0.46%
Ruby Tuesday
0.50%
0.62%
*As of September 1, 2013

23. MEETING TOPICS Tuesday – October 1, 2013 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

24. FLOW
PROJECTIONS

25. FLOW PROJECTIONS
Water Pumped To System
*As of September 1, 2013

26. Long-term Projected Maximum Day Water Demands and Treatment Capacity
FLOW PROJECTIONS
Long-term Projected Maximum Day Water Demands
and Treatment Capacity

27. Short-term Projected Maximum Day Water Demands and Treatment Capacity
FLOW PROJECTIONS
Short-term Projected Maximum Day Water Demands
and Treatment Capacity

28. WASTEWATER
PROJECTIONS

29. FLOW PROJECTIONS
Wastewater Treated
*As of September 1, 2013

30. Long-term Projected Wastewater Flows and Treatment Capacity
FLOW PROJECTIONS
Long-term Projected Wastewater Flows and Treatment Capacity

31. Short-term Projected Wastewater Flows and Treatment Capacity
FLOW PROJECTIONS
Short-term Projected Wastewater Flows and Treatment Capacity

32. MEETING TOPICS Tuesday – October 1, 2012 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

33. RECOMMENDED OPERATING BUDGET

34. YEAR OF ACCOMPLISHMENTS
Prepared Annual Report for FY 2012
Completed 2” and larger meter change outs with staff
Educated and Promoted customers use of Customer Service Portal
Optimized Customer Service Payment Interface with Billing Document Specialist
Improved Water Meter Leak Detection and Leak Adjustment Programs
Continued scanning of all old and active Authority files into Laserfiche Program
Designed, Bid, and Managed FY2013 Water Main Improvements

35. YEAR OF ACCOMPLISHMENTS
Developed Contract Documents Water Storage Tank Maintenance Program
Develop In-house Right-of-Way Maintenance Program
Continue to Enhance Systems Reliability with Improved Preventative Maintenance Programs
Develop Certification Program for each Department
Continue working with Georgia EPD for lab certification
Upgraded and Improved Phone Call Management and Handling

36. FY14 GOALS AND OBJECTIVES
Develop Sanitary Sewer System Preventative Maintenance Program (This program will include Manhole Inspection, Smoke Testing and CCTV Inspection)
Complete lab certification
Educate and Promote use of our website and online bill payment by our customers
Designed, Bid, and Managed FY2014 Water Main Improvements
Designed, Bid, and Managed GA 400 Continuous Flow Intersection Utility Improvements

37. FY14 GOALS AND OBJECTIVES
Implement Industrial Pretreatment Program
Complete 404 permitting phase of Russell Reservoir Project
Bid and Award Water Storage Tank Maintenance Program

38. PROJECTED OPERATING BUDGET
FY 2014 FY 2013 % Difference Total Operating Revenue $4,665,900 $4,404,900 6% $261,000 Total Operating Expenses $3,361,442 $3,360,250 0% $1,192 Net Operating Income $1,304,458 $1,044,650 25% $259,808 *In FY2013 we projected FY2014 Operating Expenses: $3,464,148 (Savings = $102,706) Total Non Operating Revenues $798,311 $765,036 4% $33,275 Total Non Operating Expenses $2,325,002 $2,390,372 0% -$5,370 Net Operating Income ($1,526,691) ($1,625,336) 25% $259,808 Transfer from Fund Balance $282,233 $580, % -$298,453

39. OPERATING BUDGET SUMMARY
FY 2014 FY 2013 % Difference Water & Wastewater $4,431,000 $4,220,000 5% $211,000 Tap Fees $21,150 $21,150 0% $0 Late Fees $50,000 $50,000 0% $0 Service Charges $65,800 $65,800 0% $0 Other Income $65,000 $15, % $50,000 Sprinkler Fee $32,950 $32,950 0% $0 Total Revenue $4,665,900 $4,404,900 6% $261,000

40. PROJECTED OPERATING EXPENSES
OPERATING BUDGET
PROJECTED OPERATING EXPENSES
FY FY % Difference
Salaries $1,264,000 $1,304, % -$40,000
Overtime $45,500 $56, % -$11,000
Performance Increases $37,617 $0 $37,617
Employee Benefits $515,350 $477, % $38,350
Certifications $7,500 $7, % $0
Meters $12,500 $12, % $0
Insurance $82,000 $80, % $2,000
Repairs & Maintenance $98,500 $98, % $0
Sludge Disposal $18,000 $18, % $0
Utilities $348,000 $352, % -$4,500
Supplies $150,000 $150, % $0
Chemicals $65,000 $65, % $0
Auto $80,850 $87, % -$7,000
Public Relations $18,000 $18, % $0

41. PROJECTED OPERATING EXPENSES
OPERATING BUDGET
PROJECTED OPERATING EXPENSES
FY FY % Difference
Advertising $12,500 $6, % $6,000
Travel & Food $32,500 $32, % $0
Telephone $37,925 $45, % -$7,875
Office Supplies $19,200 $23, % -$4,000
Postage $29,700 $29, % $0
Legal & Accounting $56,000 $56, % $0
Provision for Bad Debt $0 $12, % -$12,000
Rent $1,600 $0 0% $1,600
Government Fees $12,500 $30, % $18,000
Contract Labor $305,000 $273, % $32,000
Schooling & Fees $24,900 $37, % -$13,000
Engineering $11,000 $5, % $6,000
Bank Charges $28,000 $33, % -$5,000

42. PROJECTED OPERATING EXPENSES
OPERATING BUDGET
PROJECTED OPERATING EXPENSES
FY 2014 FY 2013 % Difference Uniforms $7,800 $7,800 0% $0 Contingency $30,000 $30,000 0% $0 Board Reimbursement $10,000 $10,000 0% $0 Total Operating Expenses $3,361,442 $3,360,250 0% $1,192 Net Operating Income $1,304,458 $1,044,650 25% $259,808

43. PROJECTED NON-OPERATING REVENUE
OPERATING BUDGET
PROJECTED NON-OPERATING REVENUE
FY 2014 FY 2013 % Difference Investment Income $42,000 $70, % -$28,000 CRF Water $197,325 $131,550 50% $65,775 CRF Wastewater $118,850 $95,080 25% $23,770 New Development $30,000 $30,000 0% $ County Bond $96,136 $101,506 -5% -$5,370 Build America Bond $197,100 $219, % -$21,900 Credits and Easements $0 $0 0% $0 Operational Reserve $74,000 $74,000 0% $0 Interest Income Acres $42,900 $42,900 0% $0 Service Charge on Presales $0 $1, % -$1,000 Total Non Operating Revenues $798,311 $765,036 4% $33,275

44. PROJECTED NON-OPERATING EXPENSES
OPERATING BUDGET
PROJECTED NON-OPERATING EXPENSES
FY 2014 FY 2013 % Difference Interest $2,171,966 $ 2,171,966 0% $0 Interest Expense – 1200 Acres $42,900 $42,900 0% $ County Bond $96,136 $101,506 -5% -$5,370 Operational Reserve $74,000 $74,000 0% $0 Total Non Operating Expenses $2,385,002 $2,390,372 0% -$5,370 Transfer from Fund Balance $282,233 $580, % -$298,453 Net Income (Before Depreciation) $0 $0

45. PROJECTED NON-OPERATING EXPENSES
OPERATING BUDGET
PROJECTED NON-OPERATING EXPENSES
FY 2013 FY 2012b % Difference Amortization & Depreciation $1,650,000 $1,600,000 3% $50,000 Amortization $113,000 $75,000 51% $38,000 Total $1,763,000 $1,675,000 5% $88,000 Total Net Income (Loss) -$1,763,000 -$1,675,000 5% -$88,000

46. MEETING TOPICS Tuesday – October 1, 2013 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

47. RECOMMENDED 10-YEAR CAPITAL IMPROVEMENTS PROGRAM

48. 10-YEAR CAPITAL IMPROVEMENTS PROGRAM
WATER SYSTEM PROJECTS
Hightower Water Treatment Facility $ 2,200,000
Russell Creek Reservoir ,350,000
Water Main Improvements ,929,000
S.R.53/GA400 Water Main Improvements
Distribution System Improvements ,850,000
Water Storage Tank Painting & Rehabilitation
Right of Way Clearing & Rehabilitation
Lumpkin Campground Elevated Storage Tank
Water System Studies ,000
Watershed Protection Implementation
Capital Equipment ,000,000
Miscellaneous Water System Projects ,000
Total $40,829,000

49. 10-YEAR CAPITAL IMPROVEMENTS PROGRAM
WASTEWATER SYSTEM PROJECTS
Dawson Forest Water Reclamation Facility $625,000
Belt Press
Liner in Pond B
Sewerage System Improvements ,500,000
Miscellaneous Wastewater System Projects ,000
Total $2,650,000

50. 10-YEAR CAPITAL IMPROVEMENTS PROGRAM
PROPOSED FY14 10-YEAR CIP
WATER SYSTEM PROJECTS $40,829,000
WASTEWATER SYSTEM PROJECTS $2,650,000
TOTAL $43,479,000
APPROVED FY13 10-YEAR CIP
WATER SYSTEM PROJECTS $ 36,975,000
WASTEWATER SYSTEM PROJECTS $ 2,875,000
TOTAL $ 39,850,000

51. MEETING TOPICS Tuesday – October 1, 2013 Introduction
Growth Indicators
Flow Projections
Recommended Operating Budget
Recommended 10-Year Capital Improvements Program
Recommended Comprehensive Funding Program

52. RECOMMENDED COMPREHENSIVE FUNDING PROGRAM

53. Capital Improvements Financing Model
funding program
Capital Improvements Financing Model
Models the financial performance of our system
All revenues, all expenses (CIP and operating)
Projected through 2023
Reflects all capital spending needs
Whether driven by growth, rehabilitation needs, regulatory requirements, or the economy
Reflects when the need is expected to occur or when the project is financially feasible

54. Financing Plan Summary (2013 – 2022)
funding program
Financing Plan Summary (2013 – 2022)
FY14 funding sources:
Cash funded capital $13,279,000
(Capital Recovery Fees $5,402,060)
Series 2010 Bond Funds $3,850,000
GEFA Funds $875,000
Other $25,500,000
FY13 funding sources:
Cash funded capital $11,000,000
Series 2010 Bond Funds $3,850,000
Other $25,000,000

55. Proposed Rate Increases for FY14
funding program
Proposed Rate Increases for FY14
FY2013 Funding Program
FY Proposed Rate Increases
(Effective
January 1, 2014)
FY2014 Funding Program
Water
5.5%
Sewer
6.0%

56. SERIES 2010 BOND COMPARISON
Revenue and Expense Projections

57. Water & Sewer Ending Cash Balance
funding program
Water & Sewer Ending Cash Balance

58. SERIES 2010 BOND COMPARISON
Bond Coverage
Percentage

59. SERIES 2010 BOND COMPARISON
Water Rate Increase
Percentage

60. SERIES 2010 BOND COMPARISON
Sewer Rate Increase
Percentage

61. Typical Monthly Water Residential Bill (5,000 Gallons)
FUNDING PROGRAM
Typical Monthly Water Residential Bill (5,000 Gallons)

62. Typical Monthly Sewer Bill (5,000 Gallons)
FUNDING PROGRAM
Typical Monthly Sewer Bill (5,000 Gallons)

63. Typical Monthly Water Residential Bill (5,000 Gallons)
FUNDING PROGRAM
Typical Monthly Water Residential Bill (5,000 Gallons)

64. Typical Monthly Sewer Residential Bill (5,000 Gallons)
FUNDING PROGRAM
Typical Monthly Sewer Residential Bill (5,000 Gallons)

65. MEETING TOPICS Wednesday – October 2, 2013
“The Road Less Taken“ Discussion
Yearly Review

66. THE ROAD LESS TAKEN

67. MEETING TOPICS Wednesday – October 2, 2013
“The Road Less Taken“ Discussion
City of Dawsonville
Russell Creek Reservoir
Water System Improvements
Other

68. CITY OF DAWSONVILLE

69. RUSSELL CREEK RESERVOIR

70. RUSSELL CREEK RESERVOIR

71. WATER SYSTEM IMPROVEMENTS

72. OTHER

73. MEETING TOPICS Wednesday – October 2, 2013
“The Road Less Taken“ Discussion
Yearly Review