CITY COUNCIL AGENDA Regular Meeting: Tuesday, April 22, 2014

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2 2 CITY COUNCIL AGENDA Regular Meeting: Tuesday, April 22, 2014 AGENDA ITEM: 2 Hear and deliberate on presentation from Aransas County Leadership Class 18 to place a granite memorial at Veterans Memorial Park. SUBMITTED BY: Ron Dominguez APPROVED FOR AGENDA: PKC BACKGROUND: Leadership Aransas County Class 18 is providing a memorial (see pcitures below) for installation at Veterans Memorial Park to honor Rockport natives LCPL Matthew Holloway and Sgt. Garrett McLead, who died in Operation Iraqi Freedom. Mr. Ron Dominguez will give a presentation on the project. The memorial is scheduled to be unveiled during the Memorial Day ceremony May 26. FISCAL ANALYSIS: This will be placed on Aransas County Navigation District property and Leadership Aransas County Class 18 is providing the memorial and installation so there is no expense to the City. RECOMMENDATION: Not an action item. Memorial Apr 22, 2014 Council Workshop Page 1 of 1

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5 5 CITY COUNCIL AGENDA Regular Meeting: Tuesday, April 22, 2014 AGENDA ITEM: 3 Hear and deliberate on presentation of options for sanitation service. SUBMITTED BY: City Manager Kevin Carruth APPROVED FOR AGENDA: PKC BACKGROUND: City Council has discussed a couple of times over the last three years the possibility of converting our sanitation service from hand collect to automated with the 90-gallon polycarts. The proposed CNG fueling station allows the possibility for Republic to convert their Rockport fleet to CNG vehicles and become a customer of the City. If the City decides to move forward with automation and/or fleet conversion, both will require a contract amendment. To begin the dialog on these issues, Mr. Mike Reeves, with Republic Services, will give a presentation on the following items: 1. Automation 2. CNG fleet conversion 3. Pros and Cons for City and Republic 4. Timelines The purpose of the presentation is to begin the discussion and provide a better scope of work for Republic to respond to in writing in the near future, if Council wants to continue the discussion. FISCAL ANALYSIS: N/A RECOMMENDATION: Not an action item. Sanitation Service Apr 22, 2014 Council Workshop Page 1 of 1

6 6 CITY COUNCIL AGENDA Regular Meeting: Tuesday, April 22, 2014 AGENDA ITEM: 4 Hear and deliberate on annual and fiscal report from Municipal Court. SUBMITTED BY: Municipal Court Judge Diana McGinnis; City Manager Kevin Carruth APPROVED FOR AGENDA: PKC BACKGROUND: Calendar year 2013 saw a complete reorganization of Municipal Court, including hiring a new presiding Judge and replacing the 3.5 FTE Court Clerks with new 1.5 FTE Clerks. In addition, Judge McGinnis completely revised the Court s workflow, procedures, and policies. The Judge will present reports detailing the Court s activity and finances for 2013 and review the format of the Court s monthly report. FISCAL ANALYSIS: N/A RECOMMENDATION: Not an action item. Muni Ct Report Apr 22, 2014 Council Workshop Page 1 of 1

7 7 JUDGE DIANA MCGINNIS YEAR ROCKPORT MUNICIPAL COURT ANNUAL OFFICE ACTIVITY REPORT AS OF MARCH 31, 2014 ANNUAL REPORT (JAN 1- DECEMBER 31) CITY ORDINA NCE CASES OPEN & $ STILL DUE AS OF 3/15/13 CASES OPEN & $ STILL DUE AS OF 8/1/13 CASES OPEN & $ STILL DUE AS OF 12/31/2013 CASES OPEN & $ STILL DUE AS OF 3/31/14 TRAFFIC NON TRAFFIC JUVENILE MONEY COLLECTED / $162, / $127, / $ / $ $435, / $84, / $74, / $460 2 / $ $399, / $145, / $136, / $ / $ $ 352, / $109, / $94, / $1, / $1, $ 395, / $74, / $68, / $64, / $64, $ 487, / $109, / $103, / $104, / 104, $ 489, / $90, / $82, / $92, / 92, $ 537, / $136, / $119, / $119, / 119, $ 520, / $140, / $123, / $126, / 125, $ 515, / $256, / $224, / $209, / 208, $ 478, / $211, / $191, / 172, / 166, $ 413, / $222, / $177, / $183, / 174, $ 281, / $131, / $207, / $264, / 224, $104, / 153,482 TOTAL 6269 / $1,875, / $1,730, / $1,339, /1,434,418 OFFICE ACTIVITY REPORT PHONE/OFF AS OF 3/31/ ACTIVE WARRANTS TOTALING $486, ( ) 2192 CASES STILL WORKING ON FOR WARRANTS $714, JUNE 03, DEC 31,2013 SQUARE CREDIT CARD $29, JUNE 03, DEC OFFICIAL PAYMENTS $16, CASES ON PMT PLAN $53, CASES ON PENDING WARRANTS $66, NEW CASES $57, OTHER CASES; TRIAL,C.S. DEF, HOLD ECT. CITY OF ROCKPORT, TX??TOTALS NOT UPDATED 1/24/2014

8 8 JUDGE DIANA MCGINNIS ROCKPORT MUNICIPAL COURT ANNUAL OFFICE ACTIVITY REPORT AS OF MARCH 31, $600, $537, $515, $487, $520, $500, $489, $478, $435, $399, $395, $413, $400, CITATIONS ISSUED $ $352, $1, $92, $64, $119, $104, $125, $208, $166, $281, $174, $224, $200, $300, $153, $104, $100, $ $ $0.00 CITY ORDINANCE JUVENILE NON TRAFFIC TRAFFIC MONEY COLLECTED $ STILL DUE 3/31/2014 CITY OF ROCKPORT 01/24/2014

9 9 JUDGE DIANA MCGINNIS ROCKPORT MUNICIPAL COURT FISCAL OFFICE ACTIVITY REPORT AS OF March 31, 2014 FISCAL REPORT (OCT 1- SEPT 30) YEAR TRAFFIC NON TRAFFIC JUVENILE CITY ORDINA NCE MONEY COLLECTED CASES OPEN & $ STILL DUE AS OF 3/15/13 CASES OPEN & $ STILL DUE AS OF 8/1/13 CASES OPEN & $ STILL DUE AS OF 12/31/2013 CASES OPEN & $ STILL DUE AS OF 3/31/2014 OFFICE ACTIVITY REPORT PHONE/OFF / $162, / $127, / $ / $ $ 417, / $84, / $74, / $460 2 / $ $ 396, / $145, / $136, / $ / $ $ 419, / $109, / $94, / $1, / $1, $ 385, / $74, / $68, / $47, / $47, $ 425, / $109, / $103, / $101, / $101, $ 497, / $90, / $82, / $82, / $82, $ 520, / $136, / $119, / $117, / $ 117, $ 528, / $140, / $123, / $118, / $116, $ 560, / $256, / $224, / $219, / $218, $ 462, / $211, / $191, / $176, / $171, $ 420, / $222, / $177, / $165, / $158, $ 302, / $131, / $207, / $290, / $193, $ 159, / $112, / $225, TOTAL 6269 / $1,875, / $1,730, / $1,434, / 1,434,418 AS OF 3/31/ ACTIVE WARRANTS TOTALING $486, ( ) 2192 CASES STILL WORKING ON FOR WARRANTS $714, JUNE 03, DEC 31,2013 SQUARE CREDIT CARD $29, JUNE 03, DEC OFFICIAL PAYMENTS $16, CASES ON PMT PLAN $53, CASES ON PENDING WARRANTS $66, NEW CASES $57, OTHER CASES; TRIAL, HOLD, C.S. DEFER ETC. CITY OF ROCKPORT, TX??TOTALS NOT UPDATED 1/15/2014

10 10 JUDGE DIANA MCGINNIS ROCKPORT MUNICIPAL COURT FISCAL OFFICE ACTIVITY REPORT AS OF MARCH 31, CITATIONS ISSUED $417, $419, $396, $385, $425, $497, $520, $528, $218, $560, $462, $420, $302, $171, $158, $193, $225, $159, $600, $500, $400, $300, $200, $0.00 $ $0.00 $1, $47, $117, $116, $101, $82, TRAFFIC NON TRAFFIC JUVENILE CITY ORDINANCE MONEY COLLECTED MONEY OUTSTANDING AS OF 03/31/2014 $100, $- CITY OF ROCKPORT 04/02/2014

11 11 CITY COUNCIL AGENDA Workshop Meeting: Tuesday, April 22, 2014 AGENDA ITEM: 5 Hear and deliberate on financing options for compressed natural gas fueling station project and capital improvement projects. SUBMITTED BY: City Manager Kevin Carruth APPROVED FOR AGENDA: PKC BACKGROUND: At the February 25 workshop and regular meeting, Council authorized the purchase of equipment for the CNG fueling facility and directed staff to bring back to Council funding options, including possible capital items outside of the CNG project. The table below highlights possible capital projects to include in a debt issue. Project Description Water Fourth Street Water Tower Rehabilitation North Peninsula Oaks Ground Storage Tank Rehabilitation South Peninsula Oaks Ground Storage Tank Rehabilitation Fulton Water Tower Rehabilitation 188 Steel Ground Storage Tank Rehabilitation 188 Concrete Ground Storage Tank Rehabilitation Subtotal Gas CNG Filling Station Distribution Integrity Management Program Line Replacement Subtotal Parks Aquatic Center Rehabilitation Replastering Pools & Replacing Decking Memorial Park Ball Field Light Replacement Memorial Park Improvements Subtotal Grand Total Estimated Cost $ $ $ $ $ $ $ 500, , , , ,000 12,000 2,661,000 $ $ $ 1,300,000 2,000,000 3,300,000 $ $ $ $ $ $ 500, , , ,000 1,350,000 7,311,000 The Parks Department projects specifically include: Pool (Prioritized Five-Year Plan) 1. Repair sinking deck at deep end of big pool 2. Re-plaster and apply cool-deck to small pool 3. Purchase/install PA System 4. Replace Chemtrol Automatic Filtration System CNG funding April 22, 2014 Council Workshop Meeting TBD $30,000 $10,000 $12,000 Page 1 of 3

12 12 5. Replace front entrance gate TBD 6. Increase shade coverage for patrons at both pools $15, Construct chaise for showers and improve water flow $10, Construct dressing cubicles in locker rooms $10, Re-plaster, stripe, and apply cool deck to big pool $120, Replace lobby/locker room overhead lights with TBD energy efficient fixtures/bulbs 11. Purchase/install water chiller for big pool $13, Purchase mobile water slide for big pool $10,000 Memorial Park o Construct second park entrance o Add restroom at second park entrance o Construct right turn only lane at exit to main park entrance o Add second basketball court o Purchase/install amphitheater o Replace all ball field lighting with modern, energy efficient systems with remote control o Re-engineer hike & bike trail on north and west side of lake to prevent future trail flooding o Change mulch trail to re-claimed asphalt surface and extend an additional mile into new park addition o Install playground slide Two other potential candidates for capital funding in a debt issue are repaving of Linden Street, from Lady Clair to Live Oak, and Traylor, from Fulton Beach Road to the Cinema 4 Theater just before Hwy 35 Business. Cost estimates are being developed. FISCAL ANALYSIS: Between FY and FY , we have budgeted $500,000 in account , of which $464,100 remains. There are three basic options: 1. Take the balance from reserves. 2. Issue debt only for the cost of the CNG project. 3. Issue debt for the CNG project and other capital projects on the horizon, such as water tank maintenance and repair and the ongoing DIMP gas line replacement. The City s Financial Advisor, Mr. Bob Henderson of RBC Capital Markets, prepared the accompanying reports to show what options we have to maintain level tax and utility rates given the debt service that is retired in the next few years and the marginal difference in issuance cost for a larger principal. A recap of our bond issues also accompanies this briefing sheet. Rate consultant Bob McLain analyzed the impact of the proposed debt issue on utility rates, based on the current fiscal year. The debt can be serviced without a rate increase; however, the fund balance for water and wastewater would drop 11 days to 187 and the gas fund balance would fall by 62 days to 61 days. The Council s stated fund balance policy is 180 days. Mr. McLain is running additional reports to see what the rate impact would need to be to keep the fund balance the same as FY RECOMMENDATION: Not an action item. CNG funding April 22, 2014 Council Workshop Meeting Page 2 of 3

13 CNG funding April 22, 2014 Council Workshop Meeting Page 3 of 3 13

14 14 SUMMARY OF REFUNDING RESULTS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Dated Date 05/15/2014 Delivery Date 05/15/2014 Arbitrage yield % Escrow yield % Bond Par Amount 3,130, True Interest Cost % Net Interest Cost % All-In TIC % Average Coupon % Average Life Par amount of refunded bonds 3,010, Average coupon of refunded bonds % Average life of refunded bonds PV of prior debt to % 3,785, Net PV Savings 260, Percentage savings of refunded bonds % Apr 14, :01 am Page 1

15 15 BOND SUMMARY STATISTICS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Dated Date 05/15/2014 Delivery Date 05/15/2014 First Coupon 08/15/2014 Last Maturity 02/15/2026 Arbitrage Yield % True Interest Cost (TIC) % Net Interest Cost (NIC) % All-In TIC % Average Coupon % Average Life (years) Duration of Issue (years) Par Amount 3,130, Bond Proceeds 3,503, Total Interest 1,267, Net Interest 916, Bond Years from Dated Date 31,787, Bond Years from Delivery Date 31,787, Total Debt Service 4,397, Maximum Annual Debt Service 1,398, Average Annual Debt Service 374, Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price Par Average Average Bond Component Value Price Coupon Life Serial 3,130, % ,130, All-In Arbitrage TIC TIC Yield Par Value 3,130, ,130, ,130, Accrued Interest + Premium (Discount) 373, , , Underwriter's Discount -22, , Cost of Issuance Expense -65, Other Amounts Target Value 3,480, ,415, ,503, Target Date 05/15/ /15/ /15/2014 Yield % % % Apr 14, :01 am Page 2

16 16 SAVINGS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Present Value Prior Refunding to 05/15/2014 Date Debt Service Debt Service % 09/30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/2024 1,419, ,398, , , /30/2025 1,419, ,395, , , /30/ , , , , ,698, ,397, , , Savings Summary PV of savings from cash flow 260, Net PV Savings 260, Apr 14, :01 am Page 3

17 17 SOURCES AND USES OF FUNDS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Dated Date 05/15/2014 Delivery Date 05/15/2014 Sources: Bond Proceeds: Par Amount 3,130, Premium 373, ,503, Uses: Refunding Escrow Deposits: Cash Deposit 0.06 SLGS Purchases 3,414, ,414, Delivery Date Expenses: Cost of Issuance 65, Underwriter's Discount 22, , Other Uses of Funds: Additional Proceeds ,503, Apr 14, :01 am Page 4

18 18 BOND PRICING City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Maturity Yield to Call Call Premium Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Serial: 08/15/ , % 0.300% /15/ , % 0.350% /15/ , % 0.570% /15/ , % 0.830% /15/ , % 1.060% , /15/ , % 1.330% , /15/ , % 1.720% , /15/ , % 2.000% /15/ , % 2.260% , /15/ , % 2.390% , /15/2024 1,305, % 2.500% , /15/2025 1,355, % 2.600% C 2.707% 02/15/ , /15/ , % 2.800% C 2.968% 02/15/ , ,130, , Dated Date 05/15/2014 Delivery Date 05/15/2014 First Coupon 08/15/2014 Par Amount 3,130, Premium 373, Production 3,503, % Underwriter's Discount -22, % Purchase Price 3,480, % Accrued Interest Net Proceeds 3,480, Apr 14, :01 am Page 5

19 19 BOND DEBT SERVICE City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Period Debt Ending Principal Coupon Interest Service 09/30/ , % 30,900 50,900 09/30/ , % 123, ,100 09/30/ , % 122, ,900 09/30/ , % 122, ,700 09/30/ , % 122, ,375 09/30/ , % 121, ,925 09/30/ , % 121, ,475 09/30/ , % 121, ,025 09/30/ , % 120, ,500 09/30/ , % 119, ,900 09/30/2024 1,305, % 93,500 1,398,500 09/30/2025 1,355, % 40,300 1,395,300 09/30/ , % 6, ,600 3,130,000 1,267,200 4,397,200 Apr 14, :01 am Page 6

20 20 BOND DEBT SERVICE City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Annual Period Debt Debt Ending Principal Coupon Interest Service Service 08/15/ , % 30,900 50,900 09/30/ ,900 02/15/ , % 61,600 71,600 08/15/ ,500 61,500 09/30/ ,100 02/15/ , % 61,500 71,500 08/15/ ,400 61,400 09/30/ ,900 02/15/ , % 61,400 71,400 08/15/ ,300 61,300 09/30/ ,700 02/15/ , % 61,300 76,300 08/15/ ,075 61,075 09/30/ ,375 02/15/ , % 61,075 76,075 08/15/ ,850 60,850 09/30/ ,925 02/15/ , % 60,850 75,850 08/15/ ,625 60,625 09/30/ ,475 02/15/ , % 60,625 75,625 08/15/ ,400 60,400 09/30/ ,025 02/15/ , % 60,400 75,400 08/15/ ,100 60,100 09/30/ ,500 02/15/ , % 60,100 75,100 08/15/ ,800 59,800 09/30/ ,900 02/15/2024 1,305, % 59,800 1,364,800 08/15/ ,700 33,700 09/30/2024 1,398,500 02/15/2025 1,355, % 33,700 1,388,700 08/15/2025 6,600 6,600 09/30/2025 1,395,300 02/15/ , % 6, ,600 09/30/ ,600 3,130,000 1,267,200 4,397,200 4,397,200 Apr 14, :01 am Page 7

21 21 UNDERWRITER'S DISCOUNT City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Underwriter's Discount $/1000 Amount Other Underwriter's Discount , , Apr 14, :01 am Page 8

22 22 ESCROW DESCRIPTIONS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate May 15, 2014: SLGS Certificate 08/15/ /15/ , % 0.020% SLGS Certificate 02/15/ /15/ , % 0.080% SLGS Note 08/15/ /15/ , % 0.170% SLGS Note 02/15/ /15/ , % 0.330% SLGS Note 08/15/ /15/ , % 0.550% SLGS Note 02/15/ /15/2014 3,076, % 0.800% 3,414,891 SLGS Summary SLGS Rates File 02APR14 Total Certificates of Indebtedness 138, Total Notes 3,275, Total original SLGS 3,414, Apr 14, :01 am Page 9

23 23 ESCROW COST City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Type of Maturity Par Total Security Date Amount Rate Cost SLGS 08/15/ , % 72, SLGS 02/15/ , % 66, SLGS 08/15/ , % 66, SLGS 02/15/ , % 66, SLGS 08/15/ , % 66, SLGS 02/15/2017 3,076, % 3,076, ,414,891 3,414, Purchase Cost of Cash Total Date Securities Deposit Escrow Cost Yield 05/15/2014 3,414, ,414, % 3,414, ,414, Apr 14, :01 am Page 10

24 24 ESCROW SUFFICIENCY City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Prior Debt (PRI) Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 09/30/ , , /30/ , , /30/ , , /30/2017 3,089, ,089, ,484, ,484, Apr 14, :01 am Page 11

25 25 ESCROW CASH FLOW City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Present Value Net Escrow to 05/15/2014 Date Principal Interest % 08/15/ , , , , /15/ , , , , /15/ , , , , /15/ , , , , /15/ , , , , /15/2017 3,076, , ,089, ,023, ,414, , ,484, ,414, Escrow Cost Summary Purchase date 05/15/2014 Purchase cost of securities 3,414, Target for yield calculation 3,414, Apr 14, :01 am Page 12

26 26 SUMMARY OF BONDS REFUNDED City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Maturity Interest Par Call Call Bond Date Rate Amount Date Price Combination Tax & Revenue Certificates of Obligation, Series 2007, 2007_1: TERM27 02/15/ % 1,295, /15/ /15/ % 1,365, /15/ /15/ % 350, /15/ ,010, Apr 14, :01 am Page 13

27 27 PRIOR BOND DEBT SERVICE City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Period Ending Principal Coupon Interest Debt Service 09/30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/ , , /30/2024 1,295, % 124, ,419, /30/2025 1,365, % 54, ,419, /30/ , % 9, , ,010,000 1,688, ,698, Apr 14, :01 am Page 14

28 28 ESCROW STATISTICS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Modified Yield to Yield to Perfect Value of Total Duration Receipt Disbursement Escrow Negative Cost of Escrow Cost (years) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 3,414, % % 3,262, , ,414, ,262, , Delivery date 05/15/2014 Arbitrage yield % Apr 14, :01 am Page 15

29 29 FORM 8038 STATISTICS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Dated Date 05/15/2014 Delivery Date 05/15/2014 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Serial: 08/15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/ , % , , /15/2024 1,305, % ,473, ,305, /15/2025 1,355, % ,517, ,355, /15/ , % , , ,130, ,503, ,130, Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 02/15/ % 363, , Entire Issue 3,503, ,130, % Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs (including underwriters' discount) 87, Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues 0.00 Proceeds used to advance refund prior issues 3,414, Remaining weighted average maturity of the bonds to be currently refunded Remaining weighted average maturity of the bonds to be advance refunded Apr 14, :01 am Page 16

30 30 FORM 8038 STATISTICS City of Rockport - General Obligation 2014 Refunding - BQ Small-$3.5MM Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Combination Tax & Revenue Certificates of Obligation, Series 2007: TERM27 02/15/2024 1,295, % ,295, TERM27 02/15/2025 1,365, % ,365, TERM27 02/15/ , % , ,010, ,010, Remaining Last Weighted Call Issue Average Date Date Maturity Combination Tax & Revenue Certificates of Obligation, Series /15/ /15/ All Refunded Issues 02/15/ Apr 14, :01 am Page 17

31 31 Table 1 Rate Design Alternatives - Water FY 2014 Existing Rates Proposed Rates Gallons in Minimum Bills 2,000 2,000 1 Monthly Minimum Bills: 2 5/8 x 3/4 Inch $ $ Inch inch Inch Inch Inch & Larger Outside to Inside Ratios Volumetric Rates: 12 Residential: 13 1 to 1,000 $ - $ ,001 to 1, ,501 to 2, ,001 to 5, ,001 to 10, ,001 to 15, ,001 to 20, Over 20, Commercial: 23 1 to 1,000 $ - $ ,001 to 1, ,501 to 2, ,001 to 5, ,001 to 10, ,001 to 15, ,001 to 20, Over 20, Outside to Inside Ratios Revenues Generated: 35 From Monthly Minimum Bill $ 2,196,335 $ 2,196, From Volume Rates 4,863,108 4,863, Totals $ 7,059,442 $ 7,059, Change in Revenues-> 0.00%

32 32 Table 2 Rate Design Alternatives - Wastewater FY 2014 Existing Rates Proposed Rates Gallons in Minimum Bills 2,000 2,000 1 Monthly Minimum Bills: 2 5/8 x 3/4 Inch $ $ Inch inch Inch Inch Inch & Larger Outside to Inside Ratios Volumetric Rates: 12 Residential: 13 1 to 1,000 $ - $ ,001 to 1, ,501 to 2, ,001 to 5, ,001 to 10, ,001 to 15, ,001 to 20, Over 20, Commercial: 23 1 to 1,000 $ - $ ,001 to 1, ,501 to 2, ,001 to 5, ,001 to 10, ,001 to 15, ,001 to 20, Over 20, Outside to Inside Ratios Revenues Generated: 35 From Monthly Minimum Bill $ 973,022 $ 973, From Volume Rates 1,174,784 1,174, Totals $ 2,147,806 $ 2,147, Change in Revenues-> 0.00%

33 33 Table 3 Rate Design Alternatives - Natural Gas FY 2014 Existing Rates Proposed Rates 1 Monthly Minimum Bills: 2 Residential - Fulton $ $ Residential - Inside Residential - Outside Commercial - Fulton Commercial - Inside Commercial - Outside Volumetric Rates: 10 Residential: 11 1 to 1,000 $ 1.99 $ ,001 to 2, ,001 to 3, ,001 to 5, ,001 to 10, ,001 to 15, Over 15, Commercial: 20 1 to 1,000 $ 1.99 $ ,001 to 2, ,001 to 3, ,001 to 5, ,001 to 10, ,001 to 15, Over 15, Revenues Generated: 29 From Monthly Minimum Bill $ 908,262 $ 913, From Volume Rates 236, , Totals $ 1,144,545 $ 1,139, Change in Revenues-> 0.0%

34 34 Table 4 Water & Wastewater Financial Summary Revised Proposed FY Description No Increase 1 Water Sales $ 6,279,190 $ 7,059,442 $ 7,059,442 2 Wastewater Sales 2,006,282 2,147,806 2,147,806 3 Fulton Sewer Revenue 152, , ,000 4 All Other Charges for Services 322, , ,785 5 Intergovernmental Revenues Transfers 150, , ,000 7 Other Revenues 98,724 80,328 80,328 8 Impact Fees Interest on Investments 8,329 8,500 8, Total Sources of Funds $ 9,017,749 $ 9,928,862 $ 9,928, Customer Service $ 293,867 $ 329,379 $ 329, Water Storage & Distribution 4,524,337 4,589,198 4,589, Sewer Collection & Treatment 1,228,715 1,749,404 1,749, Environmental 61, , , Non-departmental O&M 80, , , Total Operating & Maintenance $ 6,189,291 $ 6,961,161 $ 6,961, Debt Service - Existing $ 1,722,007 $ 1,741,758 $ 1,741, Debt Service - Planned , Payment-In-Lieu-of-Taxes 350, , , Transfer to General Fund - G&A 329, , , Transfer to General Fund - Admin 228, , , Other Transfers 21,790 21,790 21, Non-Operating - Subtotal $ 2,652,100 $ 2,671,851 $ 2,865, Total Uses of Funds $ 8,841,391 $ 9,633,012 $ 9,826, Sources Minus Uses of Funds $ 176,358 $ 295,850 $ 102, Beginning Working Capital Balance $ 4,760,799 $ 4,937,157 $ 4,937, Ending Working Capital Balance $ 4,937,157 $ 5,233,007 $ 5,039, Days of Working Capital-> Percentage Increases: 36 Water 8.25% 0.00% 0.00% 37 Sewer 4.39% 0.00% 0.00% 38 Overall 7.29% 0.00% 0.00%

35 35 Table 5 Natural Gas Financial Summary Revised Proposed Planned Description Natural Gas Revenue $ 927,853 $ 1,144,545 $ 1,139,648 2 Natural Gas Surcharges 803, , ,000 Natural Gas Total $ 1,731,640 $ 1,969,545 $ 1,964,648 3 Late Fees $ 8,272 $ 8,272 $ 8,272 4 Natural Gas Connection Fees 15,585 15,585 15,585 5 Natural Gas Line Installations 13,293 13,293 13,293 6 Service Charges & Fees Sale of Gas Lights/Misc. 1,700 1,700 1,700 8 Total Sources of Funds $ 1,770,835 $ 2,008,741 $ 2,003, Personnel Services $ 251,438 $ 368,753 $ 368, Contracts & Services 17,818 33,450 33, Gas Purchases 803, , , All Other Supplies 17,655 29,500 29, Travel, Train, Dues, Subsc. 20,843 28,500 28, Maintenance 99, , , Capital Outlay 21, , , Total Operating & Maintenance $ 1,232,492 $ 1,755,203 $ 1,755, Trf to Veh & Equip Fd $ 14,684 $ 14,684 $ 14, Town of Fulton Gross Receipts 5,010 5,010 5, Transfer to General Fund - Franchise Fees 28,981 28,981 28, Transfer to General Fund - In-Lieu-of-Taxes 5,000 5,000 5, Transfer to General Fund 67,313 67,313 67, Transfer to Utility Reserves 150, , , Transfer to Utility Debt Service 60,000 60,000 60, Planned Debt , Non-Operating - Subtotal $ 330,988 $ 330,988 $ 559, Total Uses of Funds $ 1,563,480 $ 2,086,191 $ 2,314, Sources Minus Uses of Funds $ 207,356 $ (77,450) $ (310,847) Beginning Working Capital Balance $ 570,486 $ 777,842 $ 700, Ending Working Capital Balance $ 777,842 $ 700,391 $ 389, Days of Working Capital-> Percentage Increases: 38 Gas -0.43% 0.00% 0.00%