City of Sanibel. Sewer Expansion Feasibility Study Update GAI #A

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1 City of Sanibel Sewer Expansion Feasibility Study 2011 Update GAI # July 2011

2 July 12, 2011 GAI Proj. # Mr. Gates Castle Utility Director City of Sanibel 800 Dunlop Road Sanibel, FL Subject: Sewer Expansion Feasibility Study 2011 Update Dear Mr. Castle: GAI Consultants, Inc. (GAI) is pleased to present herein the Feasibility Report (the Report ) for the Sewer System (the System ) authorized by the City of Sanibel (the City ). This Report is based on the adopted Fiscal Year 2011 and proposed Fiscal Year 2012 Budgets and presents a forecast of the projected sources and uses of funds for Fiscal Years 2012 through The major objective of this Study includes a review of the financial feasibility of the Sewer Expansion Program based on existing criteria and its ability to meet the financial requirements of the system without requiring user rate adjustments in excess of 3.0 percent per year. In preparing this Report, GAI developed and analyzed the following four (4) scenarios: Scenario 1A Assumes the City maintains its current outstanding SRF Loan debt and implements the annual 3.0% rate increase for all fiscal years in the projection period, or greater increases in any fiscal year as needed. Scenario 1B Assumes the City maintains its current outstanding SRF Loan debt and does not implement the 3.0% rate increase in fiscal year 2012, but does in every other fiscal year in the projection period. Scenario 2A Assumes the City utilizes money from the Utility s unrestricted reserves as well as a General Fund loan to pay-down $2 million of its current Orlando Office 618 E. South Street, Suite 700 Orlando, FL T F

3 Mr. Gates Castle July 12, 2011 Page 2 outstanding SRF Loan debt and implements the annual 3.0% rate increase for all fiscal years in the projection period. Scenario 2B Assumes the City utilizes money from the Utility s unrestricted reserves as well as a General Fund loan to pay-down $2 million of its current outstanding SRF Loan debt and does not implement the 3.0% rate increase in fiscal year 2012, but does in every other fiscal year in the projection period. We appreciate the opportunity to be of service in this matter and look forward to assisting the City with the completion of the Sewer Expansion Program. Very truly yours, GAI Consultants, Inc. Tara L. Hollis, C.P.A., M.B.A. Environmental Group Manager Attachments cc: Judie Zimomra, City of Sanibel Sylvia Edwards, City of Sanibel Ken Cuyler, City of Sanibel c:\users\hollitl\desktop\a city of sanibel feasibility study\report\r-3\cover letter.docx

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5 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July GENERAL 1.1 Background Until the early 1970s, domestic wastewater treatment on Sanibel Island consisted of septic tanks and small self-contained treatment facilities, or package plants serving individual developments. The Island s first centralized wastewater facility, known as the Jamestown-Beachview Central Wastewater System was established in This system was sold to Mariner Properties, Inc. in 1977 and then subsequently sold to Sanibel Sewer System Ltd. Partners in The Sanibel Sewer System was then acquired by the City of Sanibel in August In conjunction with this acquisition, it was determined that a comprehensive wastewater master plan should be completed in order for the City to best assess future wastewater needs and goals. In addition, a second water reclamation facility (WRF), the Wulfert Point WRF, was constructed on the northwest end of the island by the Sanctuary as a provision of its developers permit and subsequently donated to the City. Since the acquisition of the system in 1991 and the completion of the initial Wastewater Master Plan in October 1992, the City has systematically taken the necessary planning and implementation steps to expand and improve the wastewater system. These steps have included the preparation of two additional planning studies, an update of the Wastewater Master Plan in 1994, and the preparation of the Wastewater Facilities Plan in 1997 and subsequent updates to that Facilities Plan in 1998 and The City has been proceeding with the capital expansion program presented in the Wastewater Facilities Plan, which is designed to increase wastewater collection, transmission, treatment, and disposal services to a significant portion of the land area within the City limits. This capital expansion program is collectively referred to as the Sewer Expansion Program. Phase V, the most recent phase of the project to be completed, included the connection of 191 Equivalent Residential Connections (ERCs) in Sanibel Bayous and 108 ERCs in Blind Pass Condos in July Figure 1, as provided by the City, presents the location of each of the phases of the Sewer Expansion Program. GAI # 1

6 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 When the Sewer Expansion Program was initially planned, total capital costs including financing were anticipated to be approximately $40 million. The City has invested over $62 million in this program to-date. The Sewer Expansion Program has been designed to equitably recover facility improvements through a series of customer and property owner charges. In brief, the City elected to dedicate an amount certain from Ad Valorem Taxes to assist with pollution control activities, which benefit all residents of the City. In addition, each property owner is required to pay, as improvements are completed, one or more of the following fees, charges, or assessments. 1. Plant Connection Fee based on facility costs for treatment and disposal expansion necessary to provide capacity for new connections. 2. Transmission Charge based on facility costs for transmission facilities required to serve the wastewater discharges from each property. 3. Special Assessment based on a percent of the gravity sewer line facility costs. 4. User Rates and Charges that provide operating revenues necessary to provide stability and bridge any shortfall resulting from the set funding requirements. A few items regarding the calculation of the private portion of the Special Assessments and the collection of Ad Valorem Taxes should be noted. They are as follows: Special Assessments for Phases I through IIIB are calculated by taking the sum of the Total Special Assessment, the Transmission Main Charge, and the Connection Fee, multiplying it by 50% to get the private portion, and then taking the total private portion less the entire Transmission Main Charge and the Connection Charge to get the private portion Special Assessment. This results in the rates and charges shown on Table 1. GAI # 2

7 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 The amount of Ad Valorem Taxes used for the sewer expansion projects is equal to $20.4 million of project costs (principal). For the remainder of the forecast period, the collection of Ad Valorem Taxes is projected to be $10.24 million. The amount of Ad Valorem Taxes used in each Fiscal year is equal to the lesser of 50% of the annual SRF Loan Debt Service or available fund balance, unless otherwise noted. After completion of the 2009 Feasibility Study, the City paid off the SRF Debt Service associated with the Phase IIA project utilizing available balances in the ad valorem tax fund, associated debt service reserve fund, and other unrestricted cash. This was recommended as an option to the City as it helped mitigate the amount of the Fiscal year 2010 rate increase that would have been needed to meet coverage requirements of the then outstanding debt. In addition, the City has paid off two (2) other small SRF loans since Goals and Objectives As the City has invested over $71.5 million in total sewer system assets, it is imperative and fiscally prudent that the City ensure the continued viability of the Sewer Expansion Program. A primary objective of this Feasibility Report is to provide the City with an annual update on the financial stability and rate projections for the Sanitary Sewer System. In addition to its current investment, the City has proposed a 5-year Capital Improvement Program that includes approximately $1.457 million for capital improvement projects to the City s existing system through fiscal year A computer model was developed for the above goals and objectives that takes into consideration major operating, funding, and capital policy and activities. This computer model provides detailed projections for the period ending September 30, 2031, and takes into account capital expenditures and sources of revenues for the entire program GAI # 3

8 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 to determine if any shortfalls in revenues or excessive rate adjustments should be necessary. 2.0 SIGNIFICANT FORECAST ASSUMPTIONS 2.1 General The following describes the significant assumptions used in forecasting the activities of the Sewer System and the Sewer Expansion Program throughout the projection period presented in this Report. It is important to examine these assumptions in order to gain an understanding of projections detailed in the schedules accompanying this Report. The key assumptions used in projecting the sources and uses of funds in the Report are as follows: Per Resolution No , the amount of Ad Valorem Taxes available for the sewer expansion projects is capped at the debt service on $20.4 million of project costs (principal). When a property is sold, it is assumed that the remaining assessment is paid-off, as most lenders categorize the assessment as a lien that must be satisfied. Connection Fees are locked in at the rate in effect at the time each Phase is assessed. They are based on a single payment. In each phase, connection fees that are not prepaid able to be paid in 20 annual installments. For Phase I and Phase IIA, these installments included an interest rate of 3.25%. For all other phases, the interest rate is 3.50%. These fees are collected based on the total number of ERCs in each phase of the project. It is assumed that these fees are plant expansion fees that are dedicated for the repayment of SRF related debt service. The connection fee in effect for Fiscal Year 2011 is $3, The connection fees for each phase of the Sewer Expansion Program are shown in Table 1. Transmission Charges for Phase I are $1,051.20, $1, for Phase IIA, $1, for Phases IIC, $1, for Phase IIIA, $1, for Phase IIIB, and GAI # 4

9 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 $1, for Phase V, as shown in Table 1A. In each phase, Transmission Charges that are not prepaid will be collected in 20 annual installments. For Phase I and Phase IIA, these installments will include an interest rate of 3.25%. For all other phases, the interest rate is projected to be 3.50%. Phase IIB does not receive a Transmission Charge. Special Assessments can either be prepaid or billed in 20 annual installments. For Phase I and Phase IIA, these installments will include an interest rate of 3.25%. For all other phases, the interest rate is projected to be 3.50%. The amount of initial prepayments in Phases IIA, IIB, IIC, IIIA, IIIB, and V have ranged from approximately 7% to almost 28% of the total ERCs in each phase. Table 1B presents the amount and percent of the initial prepayments experienced in each phase of the program and Table 1C present any additional prepayments and the remaining assessments on installments as of May All Connection Fees, Transmission Charges, Special Assessments, and Ad Valorem taxes collected and not expended in each fiscal year will be accumulated to use for future SRF debt service. In addition, any interest earned on these funds will be accumulated for the benefit of SRF debt service payments. Any SRF debt service amounts not paid for with funds Special Assessments, Connection Fees, Transmission Charges and Ad Valorem Taxes in any fiscal year, will have to be recovered through operating revenues that fiscal year. SRF financing parameters include an assumed interest rate of 3.50%, amortized over 20 years using level principal and interest payments, with financing costs of 2.00% and a debt service reserve equal to 3.00% of the total loan. SRF debt service is assumed to begin 6 months after completion of each phase of the expansion project. The City currently provides reuse service to 3 bulk customers and 64 retail customers including private homes, condominiums, resorts, a church, private golf courses, the Fire Department, and some City-owned facilities. The City s current GAI # 5

10 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 retail rate for reuse water is $2.42 per thousand gallons. The contract with the Sanctuary Golf Course includes a provision increase the rates annually. For the purposes of these projections, it is assumed that the reuse rates will increase annually by the same percentage as the increase to the sewer rates. Based on these facts, reuse revenues for Fiscal year 2012 are budgeted at $252,000 and are projected to increase annually with adjustments to the Reuse Rate. The City s current Rate Ordinance includes a provision to increase sewer rates annually by a 3.00% annual price index. For purposes of these projections, it is assumed that the annual rate adjustment will be in effect unless as otherwise noted in the discussion of each scenario. The City provided approximately $3.5 million of the City s pooled cash to fund construction and improvements of the reuse system including the deep well and transmission to the deep well. Starting in FY 2007, the City Council adopted a 10-year repayment schedule for these advances with $350,000 budgeted annually through FY 2016 to be repaid to the City s General Fund. Fiscal year 2011 is Year 5 of the ten (10) year repayment schedule. For purposes of these projections, these repayments are to remain at $350,000 per year unless otherwise noted in the discussion of each scenario. Any future debt financing included in these projections is assumed to be accomplished through the SRF program and/or other private loans. A reserve for Natural Disasters/Capital Account has been established in order to 1) set aside funds for emergencies, natural disasters, etc. to be appropriated by the City Council and 2) be utilized for capital improvements to the sewer system. For Fiscal year 2012 $100,000 has been budgeted for this reserve. For each year of the projection period, $100,000 will be appropriated to the reserve fund until a cumulative balance of $1 million is attained. The City has a two part coverage test. Coverage on the senior lien debt (2003 Refunding Bonds) is calculated by taking dividing Net Revenues by the debt service GAI # 6

11 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 associated with the Series 2003 Refunding Bonds. Coverage on the SRF debt service is calculated by taking the Net Revenues after meeting the coverage on the senior lien debt (1.10 required) plus the assessments and ad valorem taxes collected during the fiscal year and dividing by the annual SRF debt service requirement (1.15 times required). Funding for Phase IV and the denitrification project is still being evaluated by the City. At the present time, funding for these two (2) projects is not included in these projections. An allowance for bad debt of 0.25 percent (0.25%) of the annual revenues is included in operating expenditures for each scenario. 2.2 Budget and Net Fiscal Requirement Projections Operating and maintenance (O&M) expenses are based on the adopted fiscal year 2011 budget and the proposed fiscal year 2012 budget and are adjusted annually for the impacts of inflation and customer growth. The proposed O&M expenses for fiscal year 2012 are $3,812,042. Upon review of the City s capital expenditure account, some of the expenditures historically budgeted as capital expenditures would be more appropriately classified as repairs and maintenance expenditures. Therefore, in preparing the fiscal year 2012 budget, the operating expenditures have been increased and the Capital Expenditure Program decreased to account for this reclassification of expenditures. This will continue for the remainder of the projection period. In addition, electric utility expenses are increasing at a faster rate than they have historically. Annual escalation factors have been included to adjust various line items of the Utility s budget for the projection period (See Schedule 3A for each scenario). These factors are used for items such as general inflation, labor, supplies and maintenance, customer growth, etc. GAI # 7

12 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July SCENARIOS With changes in the economy, the City has worked with GAI to develop feasibility scenarios that minimize rate shock and promote effective use of the City s existing cash balances. Four (4) scenarios were analyzed and are presented in the following sections. 3.1 Scenario 1A This scenario includes the following assumptions: The City will not adopt rate increases in excess of the 3.0% annual rate adjustment throughout the projection period. The City will continue to repay the SRF Debt Service in semi-annual payments according to the current debt service schedule. Coverage on the SRF Debt Service is projected to be met in all fiscal years in the projection period. Balances in the Sewer Fund Unrestricted Cash are projected to be sufficient to cover all annual net fiscal requirements throughout the projection period. (See Schedule 2). 3.2 Scenario 1B This scenario includes the following assumptions: The City will not implement a rate adjustment in fiscal year In addition, the City WILL NOT adopt rate increases in excess of the 3.0% annual rate adjustment throughout the remainder of the projection period. Coverage on the SRF Debt Service is projected to NOT BE MET in fiscal years 2012 through It is expected to be met in all other fiscal years throughout the projection period. GAI # 8

13 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 Balances in the Sewer Fund Unrestricted Cash are projected to be sufficient to cover all annual net fiscal requirements throughout the projection period. (See Schedule 2). 3.3 Scenario 2A This scenario includes the following assumptions: The City will not adopt rate increases in excess of the 3.0% annual rate adjustment throughout the projection period. The City will utilize $1,000,000 from Utility Unrestricted Reserves and borrow $1,000,000 from General Fund Reserves to pay down $2 million in SRF Debt. The Florida Department of Environmental Protection (FDEP), who administers the SRF Loan program, will amend the current semi-annual debt service payments to account for this $2 million payment, but will keep the term of the payments the same. This will lower the annual debt service requirements by approximately $200,000. The City will continue to repay the remaining SRF Debt Service in semi-annual payments according to the current debt service schedule. Coverage on the SRF Debt Service is projected to be met in all fiscal years in the projection period. The Utility currently has an outstanding balance on the loan from the City s General Fund related to the reuse project of $1,750,000 (previously discussed). With the proposed loan from the General Fund for the SRF Debt pay down, this balance will be increased to $2,750,000. For the purposes of these projections, the Utility will pay this in 10 annual installments of $275,000, beginning in fiscal year Balances in the Sewer Fund Unrestricted Cash are projected to be sufficient to cover all annual net fiscal requirements throughout the projection period. (See Schedule 2). GAI # 9

14 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July Scenario 2B This scenario includes the following assumptions: The City will not implement a rate adjustment in fiscal year In addition, the City will not adopt rate increases in excess of the 3.0% annual rate adjustment throughout the remainder of the projection period. The City will utilize $1,000,000 from Utility Unrestricted Reserves and borrow $1,000,000 from General Fund Reserves to pay down $2 million in SRF Debt. FDEP, who administers the SRF Loan program, will amend the current semi-annual debt service payments to account for this $2 million payment, but will keep the term of the payments the same. This will lower the annual debt service requirements by approximately $200,000. The City will continue to repay the remaining SRF Debt Service in semi-annual payments according to the current debt service schedule. Coverage on the SRF Debt Service is projected to be met in all fiscal years in the projection period. The Utility currently has an outstanding balance on the loan from the City s General Fund related to the reuse project of $1,750,000 (previously discussed). With the proposed loan from the General Fund for the SRF Debt pay down, this balance will be increased to $2,750,000. For the purposes of these projections, the Utility will pay this in 10 annual installments of $275,000, beginning in fiscal year Balances in the Sewer Fund Unrestricted Cash are projected to be sufficient to cover all annual net fiscal requirements throughout the projection period. (See Schedule 2). 3.5 Summary of Scenarios The table below presents a summary of the scenarios developed and analyzed as part of this feasibility study. The results presented are the projected results for Fiscal Year GAI # 10

15 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 Scenario Rate Increase FY 2012 $2M SRF Loan Pay Down Debt Coverage Met FY 2012 SRF Debt Coverage Ratio FY 2012 * 1A 3% No Yes B None No No A 3% Yes Yes B None Yes Yes *Minimum SRF Debt Coverage Ratio Required is CONCLUSIONS The results of each scenario are shown in Tables 2A, 2B, 2C, and 2D for Scenarios 1A, 1B, 2A, and 2B, respectively. In analyzing each scenario, GAI reviewed the achieved debt service coverage, rate increases over time, and use of unrestricted cash. As discussed above in Scenario 1B, the Sewer Fund does not achieve debt service coverage on the outstanding debt in Fiscal years 2012 through Coverage is projected to be met in each year for Scenarios 1A, 2A, and 2B. Based on the reclassification of certain capital expenditures to repairs and maintenance, which is an operating expense for coverage purposes, GAI recommends that the City increase its rates for fiscal year 2012 as soon as possible. Scenario 1B, which includes not implementing the rate increase for fiscal year 2012 may have serious negative impacts on the City Utility s ability to obtain debt financing at a reasonable rate as it is projected that it will be unable to meet coverage on its outstanding SRF debt for a period of four (4) years. It is anticipated that with each of these scenarios, the City will continue to adjust rates annually by a minimum of 3.0% after fiscal year These increases are required to meet the projected O&M costs to maintain the City s $71.5 million investment in the treatment plant and sewer system. These favorable results indicate that the current financial policies of the System are sound but significantly reliant upon the use of Ad Valorem Taxes to assist in funding and reducing both Special Assessment amounts and impact on user rates and charges. A rate comparison with neighboring and similar GAI # 11

16 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 utility systems has been prepared and included as Table 4. After discussions with Island Water Association, the average water usage for the City s residential customers is approximately 12,000 gallons per month. As can be seen on Table 4, even with the rate increase anticipated, the City s wastewater rates are still lower than the average of the other neighboring and similar utilities. In conclusion, GAI has the following observations. First, the combined use of existing conventional debt financing and SRF loans, funded through a large variety of revenue sources (User rates and charges, Connection Fees, Transmission Charges, Special Assessments, and Ad Valorem Taxes), some of which are payable over time, creates an extremely complex financial dynamic for this System. Much of the complexity is the result of the City s desire to have the Sewer Expansion Program as accommodating as possible for those paying for the System. The City s past decisions on the use of voter approved Ad Valorem taxes, the parity bond covenants, and provisions in the SRF loan agreements also contribute to the overall complexity of the program. The complicated relationship of the funding, collection, and payment elements requires that a greater attention to detail be considered than in normal circumstances. Specifically, the financial management plan, as summarized in the Significant Forecast Assumptions above, should be well documented, strictly followed, and monitored carefully to ensure that the desired results are achieved. In addition, it should be noted that this feasibility analysis does not include any additional major plant expansions or improvements beyond those for Phases I, II, IIA, IIB, IIC, IIIA, IIIB, and V for the Sewer System Expansion Program, upgrades associated with the reuse storage tank, and other minor modifications at the Donax WRF. Second, as previously mentioned, the amount of Ad Valorem Taxes available for sewer expansion projects is $20.4 million of total project costs (principal). At the present time, total loan requirements (principal) are estimated to be approximately $65.5 million for Phase I, II, IIA, IIB, IIC, IIIA, IIIB, V, and upgrades associated with the reuse storage tank. Included in this amount is approximately $14.8 million for the Phase II Donax WRF Improvements which is funded through a combination of connection charges and monthly user rates. This leaves approximately $50.7 million to be funded with a combination of Special Assessments, Connection Fees, Transmission Charges, Ad GAI # 12

17 City of Sanibel Sewer Expansion Feasibility Study 2011 Update July 2011 Valorem Taxes, and Other Sources (including Operating Revenues, Grants, transfers from other funds, etc). Thirty-seven percent (37%) of the total loan requirements (principal) will be repaid through a combination of Special Assessments, Connection Fees, and Transmission Charges. In order to be equitable to all customers in each phase, based on the above information, approximately 31% of the loan requirements (principal) for each phase will be able to be repaid from voter approved Ad Valorem Taxes. For the purposes of these projections, the remaining 32% is assumed to be paid from Other Sources including operating revenues generated from user rates and charges and Utility reserves. Upon completion of all Phases of the sewer expansion projects and when the actual total loan requirements are known, these percentages from Ad Valorem Taxes and Other Sources including Operating Revenues will have to be reevaluated and finalized. Figure 2, at the end of this report shows the breakdown of the repayment sources for the SRF Loans based on the total principal costs of $65.5 million. In preparing this feasibility study, we have formulated assumptions and developed forecasts of events such as costs, connections to the system, construction start and completion dates, inflationary impacts and management policies. Such assumptions and forecasts are based primarily on historic and current data together with interpretation of legal documents, City Policy, the Consultant s experience with similar projects, and Florida Department of Environmental Protection contractual requirements. Some of the assumptions will inevitably change or not materialize and unanticipated events may occur which could significantly change the results shown herein. For this reason, the City should continue the practice of annually updating this forecast. Items that should receive careful review annually include the amount/rate of connections to the System; O&M Expenses; annual collections of Ad Valorem Taxes, Connection Fees, Transmission Main Charges, and Special Assessments; and R&R and Capital Expenditures. GAI # 13

18 GAI Consultants, Inc. Page 1 of 124 T A B L E S & F I G U R E S

19 TABLE 1A ACTUAL AND PROJECTED RATE SUMMARY Number of ERCs Connection Fee Transmission Charge Special Assessment Total Single Pmt Annual Single Pmt Annual Single Pmt Annual Single Pmt Annual Phase I 554 $ 2, $ $ 1, $ $ 2, (1) $ (1) $ 6, $ Phase II A 89 $ 2, $ $ 1, $ $ 2, $ $ 6, $ Phase II B 624 $ 3, $ $ - $ - $ 4, (1) $ (1) $ 7, $ Phase II C 784 $ 3, $ $ 1, $ $ 2, (1) $ (1) $ 7, $ Phase III A 534 $ 3, $ $ 1, $ $ 3, $ $ 8, $ Phase III B 393 $ 3, $ $ 1, $ $ 6, $ $ 12, $ Phase IV (Projected) 47 TBD TBD TBD TBD TBD TBD TBD TBD Phase V Sanibel Bayous 193 $ 3, $ $ 1, $ $ 1, $ $ 6, $ Blind Pass Condos 108 $ 3, $ $ 1, $ $ $ $ 5, $ Note (1) Average Per ERC. Projects\Sanibel\Scenario 1A GAI Consultants, Inc. Page 2 of 124

20 TABLE 1B PREPAID ASSESSMENTS Phase Total # of Assessed Properties Initial Assessments - # of AR Accounts Prepaid Assessments Financed Assessments % Prepaid Assessments Phase I % Phase II A % Phase II B % Phase II C % Phase III A % Phase III B % Phase V % Projects\Sanibel\Scenario 1A GAI Consultants, Inc. Page 3 of 124

21 TABLE 1C ASSESSMENTS PAID IN FULL AS OF MAY 2011 Number of Accounts Paid in Full Phase # of Financed Assessments FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Total Accts Paid in Full Remaining Financed Assessments Phase I Phase II A Phase II B Phase II C Phase III A Phase III B Phase V Projects\Sanibel\Scenario 1A GAI Consultants, Inc. Page 4 of 124

22 TABLE 2A PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1A Fiscal Year 2011/ / / / /16 Operating Revenues User Fee and Charge Revenue $ 5,673,200 $ 5,844,800 $ 6,020,100 $ 6,200,900 $ 6,386,400 Other Operating Revenues 396, , , , ,000 Total Operating Revenues $ 6,069,500 $ 6,245,200 $ 6,416,500 $ 6,608,000 $ 6,802,400 Operating Expenses 3,826,200 3,921,900 4,020,500 4,121,700 4,226,100 Net Revenues $ 2,243,300 $ 2,323,300 $ 2,396,000 $ 2,486,300 $ 2,576,300 Debt Service - Parity 419, , , , ,700 Balance After Debt Service - Parity $ 1,824,000 $ 1,908,000 $ 1,979,900 $ 2,070,000 $ 2,155,600 Expansion Project Revenues Available 1,833,400 1,783,400 1,783,400 1,783,400 1,775,900 Available For Debt Service - Non-Parity $ 3,657,400 $ 3,691,400 $ 3,763,300 $ 3,853,400 $ 3,931,500 Debt Service - Non-Parity 3,183,300 3,183,300 3,183,300 3,183,300 3,183,300 Balance after Debt Service - Non-Parity $ 474,100 $ 508,100 $ 580,000 $ 670,100 $ 748,200 Other Requirements 1,045, , , , ,000 Net Operating Balance $ (570,900) $ (69,900) $ (7,000) $ (199,900) $ 121,200 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs 7,533 7,537 7,537 7,537 7,537 Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1A Page 1 of 4 GAI Consultants, Inc. Page 5 of 124

23 TABLE 2A PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1A Fiscal Year 2016/ / / / /21 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 6,578,100 $ 6,775,400 $ 6,979,200 $ 7,188,500 $ 7,404, , , , , ,300 $ 7,006,500 $ 7,217,700 $ 7,435,800 $ 7,661,900 $ 7,896,700 4,333,600 4,444,400 4,558,700 4,676,400 4,797,500 $ 2,672,900 $ 2,773,300 $ 2,877,100 $ 2,985,500 $ 3,099, , , , , ,600 $ 2,253,600 $ 2,356,200 $ 2,463,000 $ 2,565,100 $ 2,683,600 1,775,700 1,775,400 1,775,100 1,671,100 1,472,600 $ 4,029,300 $ 4,131,600 $ 4,238,100 $ 4,236,200 $ 4,156,200 3,183,300 3,183,300 3,183,300 2,983,100 2,991,800 $ 846,000 $ 948,300 $ 1,054,800 $ 1,253,100 $ 1,164, , , , ,900 (164,500) $ 246,000 $ 348,300 $ 737,100 $ 953,200 $ 1,328,900 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1A Page 2 of 4 GAI Consultants, Inc. Page 6 of 124

24 TABLE 2A PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1A Fiscal Year 2021/ / / / /26 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 7,626,600 $ 7,855,100 $ 8,090,300 $ 8,332,800 $ 8,582, , , , , ,700 $ 8,137,400 $ 8,390,700 $ 8,664,900 $ 8,942,100 $ 9,239,400 4,922,200 5,050,500 5,183,000 5,319,700 5,460,400 $ 3,215,200 $ 3,340,200 $ 3,481,900 $ 3,622,400 $ 3,779,000 $ 3,215,200 $ 3,340,200 $ 3,481,900 $ 3,622,400 $ 3,779,000 1,401,100 1,177,700 1,032, , ,400 $ 4,616,300 $ 4,517,900 $ 4,514,400 $ 4,164,600 $ 4,134,400 2,856,000 1,369,900 1,840, , ,500 $ 1,760,300 $ 3,148,000 $ 2,674,000 $ 3,914,100 $ 3,883,900 (671,600) (194,000) 500, , ,000 $ 2,431,900 $ 3,342,000 $ 2,174,000 $ 3,414,100 $ 3,383,900 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1A Page 3 of 4 GAI Consultants, Inc. Page 7 of 124

25 TABLE 2A PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1A Fiscal Year 2026/ / / / /31 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 8,839,900 $ 9,105,300 $ 9,379,300 $ 9,660,500 $ 9,950, , , , , ,600 $ 9,544,100 $ 9,857,900 $ 10,182,500 $ 10,515,700 $ 10,857,600 5,604,800 5,753,600 5,907,000 6,065,200 6,228,000 $ 3,939,300 $ 4,104,300 $ 4,275,500 $ 4,450,500 $ 4,629,600 $ 3,939,300 $ 4,104,300 $ 4,275,500 $ 4,450,500 $ 4,629, , , , $ 4,179,500 $ 4,344,400 $ 4,468,700 $ 4,450,500 $ 4,629, , , , , ,500 $ 3,929,000 $ 4,093,900 $ 4,218,200 $ 4,200,000 $ 4,379, , , , , ,000 $ 3,429,000 $ 3,593,900 $ 3,718,200 $ 3,700,000 $ 3,879,100 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1A Page 4 of 4 GAI Consultants, Inc. Page 8 of 124

26 TABLE 2B PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1B Fiscal Year 2011/ / / / /16 Operating Revenues User Fee and Charge Revenue $ 5,508,200 $ 5,674,400 $ 5,844,800 $ 6,020,100 $ 6,200,900 Other Operating Revenues 396, , , , ,400 Total Operating Revenues $ 5,904,500 $ 6,065,100 $ 6,230,000 $ 6,413,800 $ 6,601,300 Operating Expenses 3,825,800 3,921,500 4,020,000 4,121,300 4,225,600 Net Revenues $ 2,078,700 $ 2,143,600 $ 2,210,000 $ 2,292,500 $ 2,375,700 Debt Service - Parity 419, , , , ,700 Balance After Debt Service - Parity $ 1,659,400 $ 1,728,300 $ 1,793,900 $ 1,876,200 $ 1,955,000 Expansion Project Revenues Available 1,833,400 1,783,400 1,783,400 1,783,400 1,775,900 Available For Debt Service - Non-Parity $ 3,492,800 $ 3,511,700 $ 3,577,300 $ 3,659,600 $ 3,730,900 Debt Service - Non-Parity 3,183,300 3,183,300 3,183,300 3,183,300 3,183,300 Balance after Debt Service - Non-Parity $ 309,500 $ 328,400 $ 394,000 $ 476,300 $ 547,600 Other Requirements 1,045, , , , ,000 Net Operating Balance $ (735,500) $ (249,600) $ (193,000) $ (393,700) $ (79,400) COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs 7,533 7,537 7,537 7,537 7,537 Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 0.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1B Page 1 of 4 GAI Consultants, Inc. Page 9 of 124

27 TABLE 2B PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1B Fiscal Year 2016/ / / / /21 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 6,386,400 $ 6,578,100 $ 6,775,400 $ 6,979,200 $ 7,188, , , , , ,600 $ 6,797,000 $ 7,000,300 $ 7,209,400 $ 7,427,500 $ 7,653,100 4,333,200 4,443,900 4,558,200 4,675,800 4,797,000 $ 2,463,800 $ 2,556,400 $ 2,651,200 $ 2,751,700 $ 2,856, , , , , ,600 $ 2,044,500 $ 2,139,300 $ 2,237,100 $ 2,331,300 $ 2,440,500 1,775,700 1,775,400 1,775,100 1,671,100 1,472,600 $ 3,820,200 $ 3,914,700 $ 4,012,200 $ 4,002,400 $ 3,913,100 3,183,300 3,183,300 3,183,300 2,983,100 2,991,800 $ 636,900 $ 731,400 $ 828,900 $ 1,019,300 $ 921, , , , ,900 (164,500) $ 36,900 $ 131,400 $ 511,200 $ 719,400 $ 1,085,800 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1B Page 2 of 4 GAI Consultants, Inc. Page 10 of 124

28 TABLE 2B PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1B Fiscal Year 2021/ / / / /26 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 7,404,400 $ 7,626,600 $ 7,855,100 $ 8,090,300 $ 8,332, , , , , ,400 $ 7,884,800 $ 8,129,000 $ 8,393,500 $ 8,660,400 $ 8,947,200 4,921,600 5,050,000 5,182,400 5,319,100 5,459,700 $ 2,963,200 $ 3,079,000 $ 3,211,100 $ 3,341,300 $ 3,487,500 $ 2,963,200 $ 3,079,000 $ 3,211,100 $ 3,341,300 $ 3,487,500 1,401,100 1,177,700 1,032, , ,400 $ 4,364,300 $ 4,256,700 $ 4,243,600 $ 3,883,500 $ 3,842,900 2,856,000 1,369,900 1,840, , ,500 $ 1,508,300 $ 2,886,800 $ 2,403,200 $ 3,633,000 $ 3,592,400 (671,600) (194,000) 500, , ,000 $ 2,179,900 $ 3,080,800 $ 1,903,200 $ 3,133,000 $ 3,092,400 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1B Page 3 of 4 GAI Consultants, Inc. Page 11 of 124

29 TABLE 2B PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 1B Fiscal Year 2026/ / / / /31 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 8,582,700 $ 8,839,900 $ 9,105,300 $ 9,379,300 $ 9,660, , , , , ,900 $ 9,241,300 $ 9,543,600 $ 9,856,000 $ 10,178,500 $ 10,508,400 5,604,200 5,752,900 5,906,400 6,064,400 6,227,300 $ 3,637,100 $ 3,790,700 $ 3,949,600 $ 4,114,100 $ 4,281,100 $ 3,637,100 $ 3,790,700 $ 3,949,600 $ 4,114,100 $ 4,281, , , , $ 3,877,300 $ 4,030,800 $ 4,142,800 $ 4,114,100 $ 4,281, , , , , ,500 $ 3,626,800 $ 3,780,300 $ 3,892,300 $ 3,863,600 $ 4,030, , , , , ,000 $ 3,126,800 $ 3,280,300 $ 3,392,300 $ 3,363,600 $ 3,530,600 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 1B Page 4 of 4 GAI Consultants, Inc. Page 12 of 124

30 TABLE 2C PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 2A Fiscal Year 2011/ / / / /16 Operating Revenues User Fee and Charge Revenue $ 5,673,200 $ 5,844,800 $ 6,020,100 $ 6,200,900 $ 6,386,400 Other Operating Revenues 383, , , , ,400 Total Operating Revenues $ 6,057,000 $ 6,236,200 $ 6,412,200 $ 6,606,500 $ 6,803,800 Operating Expenses 3,826,200 3,921,900 4,020,500 4,121,700 4,226,100 Net Revenues $ 2,230,800 $ 2,314,300 $ 2,391,700 $ 2,484,800 $ 2,577,700 Debt Service - Parity 419, , , , ,700 Balance After Debt Service - Parity $ 1,811,500 $ 1,899,000 $ 1,975,600 $ 2,068,500 $ 2,157,000 Expansion Project Revenues Available 1,833,400 1,783,400 1,783,400 1,783,400 1,775,900 Available For Debt Service - Non-Parity $ 3,644,900 $ 3,682,400 $ 3,759,000 $ 3,851,900 $ 3,932,900 Debt Service - Non-Parity 2,964,400 2,964,400 2,964,400 2,964,400 2,964,400 Balance after Debt Service - Non-Parity $ 680,500 $ 718,000 $ 794,600 $ 887,500 $ 968,500 Other Requirements 970, , , , ,000 Net Operating Balance $ (289,500) $ 215,000 $ 282,600 $ 92,500 $ 416,500 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs 7,533 7,537 7,537 7,537 7,537 Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 2A Page 1 of 4 GAI Consultants, Inc. Page 13 of 124

31 TABLE 2C PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 2A Fiscal Year 2016/ / / / /21 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 6,578,100 $ 6,775,400 $ 6,979,200 $ 7,188,500 $ 7,404, , , , , ,600 $ 7,010,900 $ 7,221,600 $ 7,439,200 $ 7,664,700 $ 7,899,000 4,333,600 4,444,400 4,558,700 4,676,400 4,797,500 $ 2,677,300 $ 2,777,200 $ 2,880,500 $ 2,988,300 $ 3,101, , , , , ,600 $ 2,258,000 $ 2,360,100 $ 2,466,400 $ 2,567,900 $ 2,685,900 1,775,700 1,775,400 1,775,100 1,671,100 1,472,600 $ 4,033,700 $ 4,135,500 $ 4,241,500 $ 4,239,000 $ 4,158,500 2,964,400 2,964,400 2,964,400 2,764,200 2,772,900 $ 1,069,300 $ 1,171,100 $ 1,277,100 $ 1,474,800 $ 1,385, , , , , ,500 $ 194,300 $ 296,100 $ 684,400 $ 899,900 $ 1,275,100 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 2A Page 2 of 4 GAI Consultants, Inc. Page 14 of 124

32 TABLE 2C PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 2A Fiscal Year 2021/ / / / /26 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 7,626,600 $ 7,855,100 $ 8,090,300 $ 8,332,800 $ 8,582, , , , , ,800 $ 8,139,200 $ 8,394,700 $ 8,669,000 $ 8,946,100 $ 9,243,500 4,922,200 5,050,500 5,183,000 5,319,700 5,460,400 $ 3,217,000 $ 3,344,200 $ 3,486,000 $ 3,626,400 $ 3,783,100 $ 3,217,000 $ 3,344,200 $ 3,486,000 $ 3,626,400 $ 3,783,100 1,401,100 1,177,700 1,032, , ,400 $ 4,618,100 $ 4,521,900 $ 4,518,500 $ 4,168,600 $ 4,138,500 2,637,100 1,369,900 1,840, , ,500 $ 1,981,000 $ 3,152,000 $ 2,678,100 $ 3,918,100 $ 3,888,000 (671,600) (194,000) 500, , ,000 $ 2,652,600 $ 3,346,000 $ 2,178,100 $ 3,418,100 $ 3,388,000 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 2A Page 3 of 4 GAI Consultants, Inc. Page 15 of 124

33 TABLE 2C PROJECTED OPERATING RESULTS SUMMARY (Rounded) SCENARIO 2A Fiscal Year 2026/ / / / /31 Operating Revenues User Fee and Charge Revenue Other Operating Revenues Total Operating Revenues Operating Expenses Net Revenues Debt Service - Parity Balance After Debt Service - Parity Expansion Project Revenues Available Available For Debt Service - Non-Parity Debt Service - Non-Parity Balance after Debt Service - Non-Parity Other Requirements Net Operating Balance $ 8,839,900 $ 9,105,300 $ 9,379,300 $ 9,660,500 $ 9,950, , , , , ,000 $ 9,548,300 $ 9,862,100 $ 10,186,700 $ 10,520,000 $ 10,862,000 5,604,800 5,753,600 5,907,000 6,065,200 6,228,000 $ 3,943,500 $ 4,108,500 $ 4,279,700 $ 4,454,800 $ 4,634,000 $ 3,943,500 $ 4,108,500 $ 4,279,700 $ 4,454,800 $ 4,634, , , , $ 4,183,700 $ 4,348,600 $ 4,472,900 $ 4,454,800 $ 4,634, , , , , ,500 $ 3,933,200 $ 4,098,100 $ 4,222,400 $ 4,204,300 $ 4,383, , , , , ,000 $ 3,433,200 $ 3,598,100 $ 3,722,400 $ 3,704,300 $ 3,883,500 COVERAGE Series 2003 Refunding Bonds Projected Required SRF Loans Projected Required N/A N/A N/A N/A N/A CUSTOMERS Beginning DUs & EMCs Connected during Fiscal Year Ending DUs & EMCs 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 7,537 RATE ADJUSTMENT INCLUDING INFLATION 3.00% 3.00% 3.00% 3.00% 3.00% PROJECTED MONTHLY RESIDENTIAL FLAT RATE $ $ $ $ $ C:\Users\HolliTL\Desktop\ City of Sanibel Feasibility Study\Report\R-3\Scenario 2A Page 4 of 4 GAI Consultants, Inc. Page 16 of 124