FY 2020-2024 Capital Improvement Plan

City of Spencer, Iowa Solid Waste Enterprise Fund

EXHIBIT 1

Growth Assumptions

Solid Waste Rate Adjustments

Tonnage Growth

0.00%

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

2.00% 2.00% 3.00% 4.00%

1-Jul-20 1-Jul-21 1-Jul-22 1-Jul-23

4.00% 4.00% 4.00% 4.00%

Other O&M Expenses

Var.

Interest Rate - Cash Balances

0.85%

Unaudited Projected FY 2014-15 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 Audited Financial Statements Budget Projected Projected Projected Projected

12,207 $16.00 $153.60

11,605 $16.32 $165.51

12,230 $16.65 $153.85

11,353 $16.98 $149.20

11,353 $17.49 $149.30

11,353 $18.19 $155.27

11,353 $18.92 $161.48

11,353 $19.67 $167.94

11,353 $20.46 $174.66

11,353 $21.28 $181.65

Tonnage to Landfill Residential Rate

1 2

Ave Revenue per Tonnage OPERATING REVENUES Commercial Account Sales

3

$902,869 972,203

$927,093 993,698

$863,934 1,017,729

$651,367 1,042,466 14,280 255,436 203,968 62,206 36,244 26,455 $627,797 78,835 142,847 16,976 21,902 22,541 83,030 14,221 540,000 26,238 39,951 598

$670,000 1,025,000

$696,800 1,066,000

$724,672 1,108,640

$753,659 1,152,986

$783,805 1,199,105 100,233 125,000

$815,157 1,247,069 104,243 125,000

4 5 6 7 8 9

Residential User Fees County Revenue Dumpsters/Roll Off

0 0

0 0

0

85,680 125,000 153,500 40,000 31,000

89,107 125,000 75,000 40,000

92,671 125,000 75,000 40,000

96,378 125,000 75,000 40,000

114,245 161,256 52,090 34,597

142,665 50,011 43,333

125,198 22,925 43,283

75,000 40,000

75,000 40,000

Tag Sales & Transfer Station Receipts

Sales From Recyclables

0

0

0

0

0

Sales Tax

11 12

(1,789)

(1,069)

6,365

7,000

7,000

7,000

7,000

7,000

7,000

Miscellaneous

Total Operating Revenues OPERATING EXPENSES Salaries

13 $2,109,291 $2,111,128 $2,250,215 $2,292,421 $2,137,180 $2,098,907 $2,172,983 $2,250,023 $2,330,144 $2,413,469

$603,453 97,520 133,420 15,876 17,694 32,971 102,156 15,872 634,684 26,025 34,713 0

$628,840 99,995 129,077 14,002 31,263 33,000 64,244 11,078 614,337 26,100 35,916 80

$673,785 108,257 117,840 15,493 34,413 21,532 69,240 16,744 659,403 26,100 36,090 848

$697,706 119,556 157,000 21,500 34,700 23,550 95,000 19,500 1,800 540,000 27,000 37,500

$718,637 118,261 160,870 21,500 35,195 24,257 125,000 19,500 540,000 27,000 39,500 1,800

$740,196 121,809 164,856 21,500 35,705 24,984 125,000 19,500 540,000 27,000 41,500 1,800

$762,402 125,463 168,962 21,500 36,230 25,734 125,000 19,500 540,000 27,000 43,500 1,800

$785,274 129,227 173,191 21,500 36,771 26,506 125,000 19,500 540,000 27,000 45,500 1,800

$808,832 133,104 177,546 21,500 37,328 27,301 125,000 19,500 540,000 27,000 47,500 1,800

14 15 16 17 18 19 20 21 22 23 24 25

Payroll Taxes

Repairs and Maintenance

Utilities

Contract Services Insurance Premiums

Gas & Oil Supplies

Staff Development Landfill Charges Collection Fees

Sales Tax

Total Operating Expense

26 $1,714,382 $1,687,931 $1,779,745 $1,614,935 $1,774,812 $1,831,520 $1,863,850 $1,897,091 $1,931,268 $1,966,412

Net Operating Income

$394,909

$423,197

$470,470

$677,486

$362,368

$267,388

$309,133

$352,932

$398,875

$447,058

27 28 29

11,569

13,365

16,867

20,902

10,000

16,808

14,763

14,006

12,605

12,580

Interest Income

Revenue Available for Debt Service

$406,478

$436,562

$487,337

$698,388

$372,368

$284,195

$323,896

$366,938

$411,480

$459,638

Prepared by PFM Financial Advisors LLC

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Date: 12/21/2018