FY 2020-2024 Capital Improvement Plan

City of Spencer, Iowa

EXHIBIT 1

Sewer Enterprise Fund

Sewer Rate Adjustments

Growth Assumptions

1-Jul-16 1-Jul-17 1-Jul-18 1-Jul-19 1-Jul-20

4.00% 4.00% 4.00% 4.00% 4.00%

1-Jul-21 1-Jul-22 1-Jul-23 1-Jul-24 1-Jul-25

4.00% 4.00% 4.00% 4.00% 4.00%

Sewer Sales Growth Other O&M Expenses

(1.50%) 3.00% 0.85%

Interest Rate - Cash Balances

Audited Financials Projected FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Unaduited Budget Projected Projected Projected Projected Projected Projected

Revenue Available for Debt Service

30 $1,597,772 $1,921,364 $1,786,707 $1,720,672 $1,796,313 $1,865,050 $1,933,283 $1,998,898 $1,996,144 $1,991,629 $1,987,981

Sewer Debt Service Series 2009 SRF Loan Series 2010 SRF Loan Series 2016 SRF Loan

$103,635 515,353

$104,490 515,635

$104,248 515,593 219,034

$103,940 516,225 221,312

$104,568 515,500 220,419

$104,098 515,450 220,516

$104,563 516,043 220,592

$103,930 516,245 220,647

104,233 516,058 220,682

104,438 515,480 220,695

104,545 515,513 220,688

31 32 33 34 35 36 37 38

0 0

14,661

0

0

0

0

0

0

0

0

0

0

Reserved

Total Revenue Debt

$618,988

$634,786

$838,874

$841,477

$840,487

$840,064

$841,197

$840,822

$840,972

$840,613

$840,746

$54,845

$53,301

$0

$0

$0

$0

$0

$0

$0

$0

$0

Series 2007 G.O. Land Bonds Series 2017 G.O. Sewer SRF Loan Series 2018 G.O. Sewer SRF Loan

0 0 0 0

0 0 0 0

21,658

95,080 25,953

95,780 96,140 27,468

96,440 95,820 130,700

96,060 96,480 128,900

95,660 96,100 132,100

96,240 95,700 130,200

95,780 96,280 128,300

96,300 95,820 131,400 82,824 $406,344

0 0 0

0 0

Prop. Series 2019 G.O. Sewer SRF Loan 39 Prop. Series 2025 G.O. Sewer SRF Loan 40

0

0

0

0

0

0

Total G.O. Debt

$54,845

$53,301

$21,658

$121,033

$219,388

$322,960

$321,440

$323,860

$322,140

$320,360

41

Total Sewer Debt

$673,833

$688,087

$860,532

$962,510 $1,059,875 $1,163,024 $1,162,637 $1,164,682 $1,163,112 $1,160,973 $1,247,089

42

Debt Service Coverage

2.58 2.37

3.03 2.79

2.13 2.08

2.04 1.79

2.14 1.69

2.22 1.60

2.30 1.66

2.38 1.72

2.37 1.72

2.37 1.72

2.36 1.59

Net Revenues / Revenue Debt Net Revenues / All Debt

43 44

Net Cashflow After Debt

$923,939 $1,233,277

$926,175

$758,162

$736,438

$702,026

$770,646

$834,216

$833,032

$830,657

$740,892

45 46 47 48 49 50 51 52 53 54

0

(380,000) (287,017) (283,917) (149,812) 213,894 (273,000) (14,316) $59,110 0

0

0

0

0

0

0

0

0

0

Series 2007 - Cash Defeasance

(328,605) (324,317) (70,564) (19,130) (100,000) (45,385) $35,938 0

(331,592) (298,696) (15,748)

(310,000) (305,000) (68,917)

(2,735,129) (139,338)

(508,920) (138,507)

(576,658) (137,878)

(638,240) (138,311)

(635,614) (138,152)

(6,632,643) (137,099)

(540,867) (137,415)

WTP Reserve

Sanitary Sewer Reserve

(5,853)

(5,903)

(5,953)

(6,003)

(6,054)

(6,106)

(6,158)

CSI Reserve Sinking Fund Storm Sewer Bond Proceeds

(109)

0 0 0

0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0

0 0 0

(287,879)

0

2,000,000

6,000,000

(10,048) ($17,897)

(56,931) $17,314

(35,273)

(36,331) $12,365

(37,421) $12,736

(38,544) $13,118

(39,700) $13,512

(40,891) $13,917

(42,118) $14,335

Other Cash Sources / (Uses)

Annual Surplus / (Deficit)

($179,154)

Operating Cash Beginning Balance

$496,859

$532,798

$591,908 (17,897) $574,010

$574,010

$591,324 (179,154) $412,170

$412,170

$424,535

$437,271

$450,389

$463,901

$477,818

55 56 57

35,938

59,110

17,314

12,365

12,736

13,118

13,512

13,917

14,335

Annual Surplus / (Deficit)

Ending Balance

$532,798

$591,908

$591,324

$424,535

$437,271

$450,389

$463,901

$477,818

$492,153

42%

47%

47%

44%

30%

30%

30%

30%

30%

30%

30%

Cash Balance as % of O&M

58

Note: Assumes full borrowing of $6 million WTP Upgrade in FY 2025, but City can likely draw down large cash balance in WTP Reserve to lessen debt burden.

Prepared by PFM Financial Advisors LLC

Page 2 of 4

Date: 12/21/2018