BOARD OF WATER SUPPLY of the COUNTY OF KAUA I

Transcription

1 BOARD OF WATER SUPPLY of the COUNTY OF KAUA I FINANCE COMMITTEE MEETING Second Floor, Kaua'i County Department of Water 4398 Pua Loke Street, Līhu'e, Kaua'i, Hawai'i Līhu e, Kaua i, Hawai i TUESDAY, MAY 9, :00 p.m. AGENDA A. CALL TO ORDER B. ROLL CALL C. ACCEPTANCE OF AGENDA D. ACCEPTANCE OF MINUTES E. NEW BUSINESS 1. Draft for Fiscal Year a. Fiscal Year Draft Operating b. Fiscal Year Draft Capital Outlay F. ADJOURNMENT Page 1 of 1 NOTE: NOTE: If you need an ASL Interpreter, materials in an alternate format, or other auxiliary aid support, please contact Edie at or eineumiller@kauaiwater.org at least seven calendar days before the meeting. PAGE 1

2 DEPARTMENT OF WATER County of Kaua i Water has no Substitute Conserve It! May 9, 2017 (RBM March 24, 2017) Re: Proposed for FY RECOMMENDATION: Board review and approval of the Department of Water (DOW) s Proposed FY Annual Operating and New Capital Outlay s BACKGROUND: The Department of Water ( DOW ) maintains three different funds namely: Water Utility Fund ( WUF ), Facilities Reserve Charge ( FRC ) Fund, Build America Bond ( BAB ). The proposed FY is comprised of: I. The Operating. II. The New Capital Outlay and III. Rollover of Outstanding Purchase Orders (PO). The rollover of outstanding PO s is not available at this time but it will be presented separately as a supplemental budget after FY 2017 year end closing. I. The Operating The Water Utility Fund is the general operating account of the Department of Water. Revenues are generated from water sales through the operation of 13 different water systems island wide. The DOW provides an annual average of four billion gallons of water to over 21,000 customer accounts from single family dwellings to agricultural, commercial, government and other mixed- use accounts. The water rates currently used are based on the last rate increase effective on July 1, These rates were established through a five year Water Rate Study conducted by an Independent Professional Consultant in FY While the Department is undergoing another five year Water Rate Study, there is no scheduled water rate increase for the upcoming FY The average increase and/or decrease in annual water consumption within the three fiscal years is within one percent plus or minus consistently. This trend of water usage was used as a basis for projecting a one percent decrease in estimated annual water usage for FY The chart below is a five year illustration of the actual water consumption in billion gallons from fiscal years ending and projected water consumption for FY ending 2017 and Pua Loke Street, Lihu e, Kaua i, Hawai i or P. O. Box 1706, Lihu e, HI Phone No. (808) Administration FAX No. (808) Engineering/Fiscal/Shop FAX No. (808) PAGE 2

3 Draft for Fiscal Year Page 2 of 9 PAGE 3

4 Draft for Fiscal Year Page 3 of 9 A. PROJECTED RESOURCES: DOW Available Resources is comprised of the following: 1. Unrestricted Fund Balance - $25,628, (estimated). DOW s audited financial statements have an unrestricted beginning balance of $38,454, as of July 1, Of this amount, $5.9 million (M) and $4.3M were internally restricted for the Emergency Reserve Fund and the Debt Service Reserve Fund. In addition, $2.6M was reserved for the prior year s encumbrances which gives the DOW a starting point for the estimated beginning fund balance of $25,628, This estimated beginning balance can either go up or down depending on the actual results of the projected revenues and expenses at the end FY PAGE 4

5 Draft for Fiscal Year Page 4 of 9 2. Operating Revenues $37,146, (projected) 2.1 Water Sales - $29,131, DOW is a self-supporting entity of the County of Kauai. As an enterprise fund, DOW generates revenues from the operation of various water systems island-wide through water sales. Revenues from water sales account for 78 percent of our projected revenues and receipts in FY Water Sales projection for FY 2018 is $679 thousand (K) lower than the FY 2017 budget. This decrease in projection is based on the estimated consumption of billion gallons at the end of FY 2017 with a one percent decrease. This assumption is based on the water usage for the past three years where a trend of 1 percent plus or minus was consistent. The comparative water usage chart above illustrates this trend. This estimate is comparable to FY 2016 actual water sales data which is reasonable because water rates are the same as there are no scheduled water rate increases in FY 2017 and Revenue from Public Fire Protection - $2,122, The Revenues from Public Fire Protection at $2,122, is non-cash revenue that we bill the County of Kauai for a total of 2,918 public fire hydrants and stand pipes that the department (DOW) maintains island wide. The County does not pay the DOW for this bill but in exchange, DOW benefits from the countywide services that the County of Kauai provides to the DOW and its staff. A contraexpenditure account offsets this revenue. 2.3 Grants - $5,104, DOW was awarded a grant by the State of Hawaii in the amount of $4,450, Release of funds from this grant is contingent upon DOW s budget approval and award of this project contract. In addition to the grant, DOW will receive a BAB Subsidy of $935,379.00; $654, or 70 percent which is allocated to WUF and the remaining 30 percent or $280, is allocated to FRC fund. 2.4 Other Revenues - $874, Other water revenues at $874, are derived from projected installations, jobbing and late charges, interest income and gains or losses from the disposal of capital assets. In addition, DOW expects to collect receivables of $519,896 from Department of Water Supply, County of Maui for their proportionate share of Oracle and Service Cloud license fees. 3. Non-Revenue Cash Inflow None. The Department of Water does not anticipating any State Revolving Fund Loan or Bond Proceeds in FY Transfers in WUF - $2.1M (estimated) FRC Receipts are projected at $400K plus a 30 percent allocation of BAB subsidy of $280, with an estimated FRC beginning balance of $1.4M. The sum of these amounts is $2.08M which will be recorded as W/U Transfers - In if funds become available to reimburse WUF at the end of FY 2018 for FRC related debt service. PAGE 5

6 Draft for Fiscal Year Page 5 of 9 B. ALLOCATION OF PROJECTED RESOURCES: Water Utility Fund available resources is allocated as follows: 1. Operating Expenses - $27,475, The DOW s operating expenses are summarized by major expenditure items or similar category for the purpose of this report. An Operating Expense Summary and an Operating Expense Detail are attached for your further review. 1.1 DOW s Salaries and Wages for FY are budgeted at $7,194, which is an increase of $612K from the prior fiscal year budget. This is equivalent to a 9.3 percent increase in budget from FY There is no scheduled salary increases for FY 2018 because all the negotiated contracts will end at the end of FY The different bargaining units are currently in contract negotiations and prior salary increases were at an average of 3.5% increase across the board. This average was used to project at 3.5 percent increase across the board for salaries and wages. There are five dollar funded positions in the prior year which are funded at 100 percent in this proposed budget, 18 vacancies altogether are funded at 100 percent; 1.2 The DOW s FY 2018 employee benefits budget is $3,858,189.00, an increase of $693K dollars or 21.9 percent from FY 2017 budget. Salary increases have 3.5 percent related increases to FICA taxes and Employee Retirement System (ERS) benefits. In addition to the 3.5 percent PAGE 6

7 Draft for Fiscal Year Page 6 of 9 increase, employer contributions to ERS were increased from 17 percent to percent. This increase is based on the ERS s recommendation which they already submitted to the State s legislature for approval. FICA taxes and retirement benefits are fixed percentage of total salaries while health premiums are fixed amounts based on plan subscriptions. Other Post-Employment Benefit ( OPEB ) costs were budgeted at $1M which fully funds the Annual Required Contribution (ARC) of DOW for DOW Retiree Health Care Plan using the actuarial valuation draft report as of July 1, 2015 provided by GRS Consultants and Actuaries. 1.3 Services, which include Professional Services, Accounting & Auditing, Other General Services, Public Relations and Miscellaneous Services totaled $3,765,594.00, an increase in budget of $189K from FY 2017 budget. Major projected expenditures under the Services category are: Professional Services General; this budget line item is increased by $285K as compared to FY 2017 budget Accounting and auditing budget is decreased by $70K as compared to FY 2017 budget. The DOW budgeted for 2 years in FY 2017 to allow DOW to award the new auditing services contract for FY 2017, the same year that the services are contracted for Other services, general & billing is a net decrease of $54.9K for FY Public Relations, Procurement Advertising, Communications, Freight & Postage, Rentals & Leases and Insurance account for $1.07M in the budget; a combined increase of $28.6K from FY County Service Charge at $2.12M is a non-cash expenditure where revenues from public fire hydrants are billed to the County of Kauai and the same amount is charged as a contraexpenditure for services rendered by the County to DOW. 1.5 Utility Services budget at $2.78M decreased by $472K as compared to FY Decrease in utility costs reflects the effect lower gas prices and DOW cost saving initiatives. 1.6 Repairs & Supplies, which includes Repairs & Maintenance for water systems, Repairs & Maintenance (other than water systems), Office & Operating Supplies, Fuel and Bulk Water Purchase have a total budget of $3.82M, a decrease of $573K from FY Human Resources budget includes Books, Publications & Memberships, Training & Development, Travel & per diem and Meeting expenses for both staff and board members. for this category increased by $61.7K from $238K in FY 2017 to $299K in FY Interest Expense - total annual interest expense for FY 2018 is $3.64M, decreased by $169.6K from $3.81M in fiscal year Debt Service Principal - $4,835, Annual Debt Service Requirements (DSR) equals $8.48M; of this amount, $4.84M is payment for debt principal and $3.64M is payment for interest expense. 3. New Capital Outlay Furniture, Fixture & Equipment (FF&E) & Technology - $1,366,800 FFE budget is $505K replacement, $120K new purchases and technology budget is $742K. PAGE 7

8 Draft for Fiscal Year Page 7 of 9 4. New Capital Outlay CIP $ 32,040, The Water Utility Fund New Capital Outlay - CIP is presented separately below. 5. Reserve Transfer - None In accordance with Board Policy 26 & 27, the Debt Service Reserve (DSR) and Emergency Reserve Fund (ERF) can both be reduced by $100K each based on the proposed operating budget and debt service requirements for FY II. New Capital Outlay All Funds In addition to the operating expenses, debt service and reserve transfers, there is a substantial capital outlay budget. This presentation is a detailed breakdown of the New Capital Outlay. The Department of Water (DOW) Capital Outlays are categorized as Expansion or Rehabilitation & Replacement (R&R). Each project is categorized before identifying the fund sources. Each Fund Source will be selected from one or more of the following based on available resources and purposes of the fund; 1.1 Water Utility Fund (WUF) 1.2 Facility Reserve Charge (FRC) Fund 1.3 Bond Fund 1.4 State Revolving Fund (SRF) PAGE 8

9 Draft for Fiscal Year Page 8 of 9 Capital Outlay budget are categorized and funded below as follows: 1. Miscellaneous Capital Purchases - Expansion - Rehabilitation and Replacements ( R&R ) 2. Capital Projects R&R - Design - Construction 3. Capital Projects Expansion - Design - Construction 1. Capital Outlay / Water Utility Fund: $11,973, Capital Outlay Furniture, Fixtures & Equipment (FFE) & Technology - $1,366, Replacements. $1,246, This amount is comprised of $742K budget for various Technology initiatives and $505K replacement costs for vehicles and equipment for the Operations division. New Purchases. $120, This amount is comprised of $10K as needed services for Construction and Management and $110K for new equipment in Operation s division. 1.2 Capital Outlay- Capital Improvement Projects (CIP): R&R - $7,391, Design. R&R Projects have two (2) proposed projects for $300, Construction. R&R has 3 proposed projects for $7,091, Capital Outlay - CIP: Expansion $3,214, Design budget. None Construction budget. A grant of $4.45M was released by the State of Hawaii for the design and construction of a water pipeline connecting Hanapepe & Eleele. Of this project, 78 percent or $2.518M is expansion related. Since this project is funded by this grant, the FRC fund is no longer needed to fund this project. 2. Capital Outlay/ FRC Fund $7,605, Our FRC fund is insufficient to fund the FY 2018 proposed expansion projects. To proceed with any of these projects, an Inter-fund transfer from Water Utility Fund to FRC fund will be required if these proposed projects will go out for bid. This will be done through a Manager s Report to the Board of Water Supply for approval. 2.1 Capital Projects Expansion - $7.68M Design budget - $79K Construction budget - $7.61M. This amount is to fund two (2) proposed construction projects. 3. Capital Outlay / BAB Fund- - $13,749, Capital Projects R&R - $4,732, Design budget - None Construction budget $4.73M. There are 3 proposed projects for this budget. PAGE 9

10 Draft for Fiscal Year Page 9 of Capital Projects Expansion - $9,017, Design budget None Construction budget $9.017M. There are five (3) proposed projects for this budget. III. Rollover of Outstanding Purchase Orders (PO). The Rollover of Outstanding Purchase orders are contracts and other obligations of the DOW for which funds were encumbered but not spent. The yearend closing procedures are necessary to get a full accounting of outstanding PO s hence; this component of the budget will be submitted at a later date. Thank you for your attention to these matters and we look forward to working together with you on the proposed budget. Respectfully submitted, Marites Yano Waterworks Controller CONCURRED: Kirk Saiki, P.E. Manager and Chief Engineer MY:ein Attachment: Proposed for Fiscal Year Mgrrp/May 2017/Proposed for FY (RBM )(FCM ):ein PAGE 10

11 Fund Balance Projections Fund Balance Projections Water Utility General Fund Water Utility Emergency Reserve Water Utility Debt Reserve **Facility Reserve Charge Fund Bond Fund State Revolving Fund TOTAL Beginning Balances 7/1/16 $25,628,219 $5,900,000 $4,300,000 $1,399,872 $13,699,937 $0 $50,928,028 Fund Balance Restricted for Unexpended Prior Year Encumbrances Estimated Change in Fund Balances 6/30/17 $2,626,529 $0 $0 $402,392 $2,633,120 $0 $5,662,041 -$2,626,529 $0 $0 -$402,392 -$2,633,120 -$5,662,041 Estimated Beginning Fund Balance - 7/1/17 $25,628,219 $5,900,000 $4,300,000 $1,399,872 $13,699,937 $0 $50,928,028 Revenues $37,232,887 $0 $0 $680,614 $50,000 $0 $37,963,501 Non- Revenue Cash - Inflow $0 $0 Transfers In $2,080,486 $0 $0 $0 $0 $2,080,486 Transfers (Out) $0 $0 -$2,080,486 $0 -$2,080,486 Adjusted Balance $64,941,592 $5,900,000 $4,300,000 $0 $13,749,937 $0 $88,891,529 Operating Expenses $27,475,066 $0 $0 $0 $0 $0 $27,475,066 Debt Principal Repayment $4,835,459 $0 $0 $0 $0 $0 $4,835,459 New Capital Outlay - FFE $1,366,800 $0 $0 $1,366,800 New Capital Outlay - CIP $10,606,325 $7,684,238 $13,749,937 $0 $32,040,500 Reserve Transfers -$200,000 $100,000 $100,000 $0 $0 $0 $0 Prior Year Encumbrances $0 $0 $0 $0 Supplemental # 1 $0 Interfund Transfer $7,684,238 -$7,684,238 $0 Estimated Ending Balance - 6/30/18 $13,173,704 $5,800,000 $4,200,000 $0 $0 $0 $23,173,704 ** FRC fund balance is not sufficient to fund the Proposed Capital Outlay - Expansion Projects. An Interfund transfer through a Manager's Report will be required in order to proceed with any of the FRC Capital Outlay - Expansion projects. Calculation of DOW Reserves: current budget required balance budget required FY 2017 EMERGENCY Reserve = 25% of Operating Expenses net of Depreciation/Amortization & Interest Expense 23,185, $5,796,491 -$100,000 DSR = 50% of annual DSR budget 8,474, $4,237,280 -$100,000 -$200,000 FY Summary Fund Balance Projections 3/16/ of 15 PAGE 11

12 Operating ed Revenue from Operations FY () s Water Utility Fund YTD s (As of 2/28/17) FY Proposed INCREASE (DECREASE) % INC/ (DEC) $32,756,288 $30,880,174 $33,581,263 $37,175,295 $20,800,968 $37,232,887 $57,593 0% Water Sales $29,615,790 $26,549,659 $29,228,109 $29,810,007 $19,079,021 $29,131,189 -$678,818-2% Public Fire Hydrants, Investment Income & Misc Revenues $2,349,243 $2,141,642 $2,670,149 $2,242,750 $1,666,164 $2,996,934 $754,184 34% ed Operating Expenses Grants $791,256 $2,188,873 $1,683,005 $5,122,538 $55,783 $5,104,765 -$17,773 0% $20,864,540 $27,880,247 $23,748,872 $27,003,532 $13,234,271 $27,475,066 $471,534 11% Salaries (Regular & Special Wages) $5,006,205 $6,242,396 $5,463,282 $6,482,554 $3,280,643 $7,194,844 $712,290 11% Other Operating Expenses $15,858,335 $21,637,851 $18,285,589 $20,520,978 $9,953,627 $20,280,222 -$240,756-1% Other (Sources)/ Uses $4,390,954 $5,783,163 $5,513,253 $9,167,296 $4,550,431 $9,285,459 $118,163 1% Debt Service - Principal $4,390,954 $4,483,163 $4,483,163 $4,717,296 $4,550,431 $4,835,459 $118,163 3% State Grants - Capital Outlay $1,300,000 $1,030,090 $4,450,000 $0 $4,450,000 $0 0% Estimated Net Proceeds from Operations (Fund Balance Transfer) $7,500,794 -$2,783,237 $4,319,138 $1,004,467 $3,016,266 $472,362 -$532,105-12% FY Summary Operating 3/16/2017 PAGE 12 2 of 15

13 Revenue Summary FY s s s FY Proposed REVENUES Water Utility Fund $32,756,288 $30,880,174 $33,581,263 $37,175,295 $20,800,968 $37,232, Water Sales $29,615,790 $26,549,659 $29,228,109 $29,810,007 $19,079,021 $29,131, Revenue from Public Fire Protection $1,991,250 $1,989,642 $2,122,038 $1,991,250 $1,237,856 $2,122, Other Water Revenue $248,386 $120,000 $338,585 $150,000 $265,051 $250, Federal Grants $0 $0 $0 $0 $0 $ State Grants $103,511 $1,500,000 $1,030,090 $4,450,000 $0 $4,450, Capital Contributions - Cash Receipts $615,588 $687,873 $635,696 $672,538 $55,783 $654, Capital Contributions - Non - Cash Receipts $0 $0 $0 $0 $0 $ Net Increase / Decrease in Fair Value of Investments $41,463 $0 $15,165 $0 $0 $ Investment Income $109,607 $30,000 $209,526 $100,000 $143,919 $100, Gain or Loss on Disposal of Capital Assets $0 $2,000 $0 $500 $18,554 $5, Gain or Loss from the Retirement of Debt $0 $0 $0 $0 $0 $ Miscellaneous Revenues $30,694 $1,000 $2,054 $1,000 $784 $519,896 Water Utility Fund Bond and Loan Proceeds $0 $0 $0 $0 $0 $ WU Bond Proceeds $0 $0 $0 $0 $0 $ WU/ Loan Proceeds - SRF Loan $0 $0 $0 $0 $0 $0 FRC Fund $713,365 $788,231 $2,154,675 $993,981 $280,692 $680, Facility Reserve Charge $429,900 $500,000 $1,882,234 $705,750 $256,785 $400, Federal Grants $276,518 $288,231 $272,441 $288,231 $23,907 $280, Net Increase / Decrease in Fair Value of Investments $0 $0 $0 $0 $0 $ Investment Income $6,947 $0 $0 $0 $0 $0 Bond Fund $77,253 $100,000 $86,942 $100,000 $22,688 $50, Net Increase / Decrease in Fair Value of Investments -$416,744 $0 -$242,299 $0 -$146,406 -$24, Investment Income (Net of custodial fees & other investment cost) $493,997 $100,000 $329,241 $100,000 $169,094 $74,000 SRF Fund $2,005,798 $0 $0 $0 $0 $ SRF - Federal Grants $2,005,798 $0 $0 $0 $0 $ Net Increase / Decrease in Fair Value of Investments $0 $0 $0 $0 $0 $0 FY Summary Revenue Summary 3/16/2017 PAGE 13 3 of 15

14 Operating Expense Summary FY s s FYTD Exp. - As of 2/28/17 FY Proposed OPERATING EXPENSES Water Utility Fund $20,864,540 $27,880,247 $23,748,872 $27,003,532 $13,234,271 $27,475, Salaries & Wages (Regular & Compensated Leave) $4,175,159 $5,358,857 $4,665,226 $5,689,574 $2,753,797 $6,296, Temporary Assignment $78,574 $60,044 $55,974 $60,386 $20,509 $60, Overtime $586,511 $542,000 $564,122 $551,000 $401,053 $556, Special Pay $165,960 $181,495 $177,960 $181,594 $105,284 $181, Vacation & Compensatory Time Pay out $40,921 $100,000 $0 $100,000 $0 $100, FICA Taxes $345,291 $476,370 $374,248 $503,565 $233,045 $550, Retirement Contributions $740,082 $1,029,995 $1,166,860 $1,112,792 $540,041 $1,769, Life and Health Insurance $403,617 $567,885 $437,043 $565,869 $272,038 $521, Workers Compensation -$106,697 $0 $2,954 $0 $19,745 $ Unemployment Compensation $15,000 $15,000 $0 $15,000 $310 $15, Post Employment Benefits (OPEB) $884,000 $914,000 $914,000 $968,000 $663,244 $1,002, Professional Services - General $645,584 $2,437,257 $543,373 $2,011,548 $296,986 $2,296, Professional Services - Accounting and Auditing $71,000 $100,000 $100,000 $190,000 $55,000 $120, Other Services - General $44,243 $82,636 $46,412 $77,200 $33,881 $71, Other Services - Billing Costs $166,885 $292,380 $185,723 $255,500 $128,022 $206, Public Relations - General $132,636 $272,850 $272,850 $78,500 $39,428 $92, Procurement Advertising $10,201 $4,700 $4,700 $10,000 $9,726 $10, Communication Services $107,486 $118,512 $105,092 $126,980 $75,972 $119, Freight and Postage Services $4,661 $14,250 $14,250 $9,500 $4,145 $15, Rentals and Leases $88,787 $187,880 $187,880 $117,400 $78,873 $133, Insurance $63,449 $710,000 $710,000 $700,000 $18,222 $700, County Service Charge $1,989,642 $1,989,642 $1,989,642 $1,991,250 $1,414,692 $2,122, Utility Services $2,964,602 $3,701,000 $3,701,000 $3,246,000 $1,618,833 $2,773, Repairs and Maintenance - Water System $208,798 $591,000 $591,000 $366,000 $36,636 $271, Repairs and Maintenance - Other than Water System $257,553 $431,720 $431,720 $821,510 $177,519 $740, Office Supplies $22,590 $45,000 $45,000 $44,367 $9,929 $22, Operating Supplies $923,727 $996,830 $826,458 $1,098,050 $520,589 $848, Fuel $111,959 $208,550 $208,550 $148,750 $41,983 $115, Bulk Water Purchase $1,573,111 $2,099,326 $1,517,937 $1,916,826 $1,075,037 $1,825, Books, Publications, Subscriptions, and Memberships $25,976 $30,949 $30,949 $29,860 $20,212 $30, Books, Publications, Subscriptions, and Memberships - Boa $444 $1,025 $1,025 $1,500 $225 $1, Training and Development $52,391 $97,024 $61,895 $92,530 $49,079 $112, Travel and Per Diem $13,218 $81,125 $64,325 $79,720 $18,304 $114, Travel and Per Diem - Board $5,226 $17,175 $6,967 $20,210 $3,339 $24, Meeting Expense $33,907 $16,150 $16,150 $6,800 $2,034 $7, Meeting Expense - Board $4,670 $11,250 $11,250 $7,090 $2,304 $9, Interest Expense $4,013,376 $4,096,369 $3,716,337 $3,808,660 $2,494,233 $3,639,100 Water Utility Fund - Bond and Loan Proceeds and Repayment $4,390,954 $4,483,163 $4,483,163 $4,717,296 $4,550,431 $4,835, Debt Principal Repayment $4,390,954 $4,483,163 $4,483,163 $4,717,296 $4,550,431 $4,835,459 Water Utility Fund - Non ary Operating Expenses $7,152,877 $7,323,987 $7,107,359 $7,964,750 $4,897,141 $7,964,750 FY Summary Operating Expense Summary 3/16/ of 15 PAGE 14

15 Operating Expense Summary FY s s FYTD Exp. - As of 2/28/17 FY Proposed OPERATING EXPENSES Depreciation $6,707,560 $7,323,987 $6,513,305 $7,314,750 $4,506,324 $7,314, Amortization $445,317 $0 $594,054 $650,000 $390,818 $650, Depreciation $0 $0 -$41,932 $0 -$24,460 $0 Items 601, 602 and 682 are balance sheet items that are tracked as revenues and expenses for convenience during the year. FY Summary Operating Expense Summary 3/16/ of 15 PAGE 15

16 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) Water Utility Fund Operating Expenses $20,864,540 $27,880,247 $23,748,872 $27,003,532 $13,234,271 $27,475, Salaries and Wages (includes compensated annual leaves and comp time.) $4,175,159 $5,358,857 $4,665,226 $5,689,574 $2,753,797 $6,296, WU - Admin - Admin - Salaries and Wages $491,128 $741,245 $586,951 $787,453 $317,155 $806, WU - IT - Admin - Salaries and Wages $191,111 $189,779 $159,204 $159,424 $91,064 $203, WU - Qual - Purification - Salaries and Wages $199,766 $203,418 $208,980 $213,066 $123,073 $226, WU - Eng - Admin - Salaries and Wages $138,847 $253,399 $212,611 $288,109 $138,742 $381, WU - Const - Admin - Salaries and Wages $255,693 $346,466 $271,672 $473,518 $184,235 $475, WU - Plan - Admin - Salaries and Wages $295,073 $462,271 $337,425 $533,794 $241,373 $544, WU - Bill - Collection - Salaries and Wages $392,278 $438,527 $451,905 $458,705 $254,647 $475, WU - Acctg - Admin - Salaries and Wages $354,883 $412,135 $364,755 $478,657 $218,162 $484, WU - Ops - Source - Salaries and Wages $188,281 $216,495 $186,095 $213,702 $111,298 $319, WU - Ops - Purification - Salaries and Wages $177,108 $255,711 $212,103 $210,985 $108,134 $280, WU - Ops - PowerAndPump - Salaries and Wages $158,715 $174,074 $144,478 $181,422 $91,913 $241, WU - Ops - TandD - Salaries and Wages $1,332,276 $1,665,338 $1,529,047 $1,690,739 $874,001 $1,857, Temporary Assignment $78,574 $60,044 $55,974 $60,386 $20,509 $60, WU - Admin - Admin - Temporary Assignment $1,639 $1,000 $2,692 $1,000 $1,294 $1, WU - IT - Admin - Temporary Assignment $261 $500 $452 $500 $516 $ WU - Qual - Purification - Temporary Assignment $1,547 $1,500 $1,400 $1,500 $796 $1, WU - Eng - Admin - Temporary Assignment $9,432 $6,000 $1,531 $6,000 $490 $6, WU - Const - Admin - Temporary Assignment $0 $5,000 -$3,315 $5,000 $72 $5, WU - Plan - Admin - Temporary Assignment $30,733 $10,000 $17,753 $10,000 $613 $10, WU - Bill - Collection - Temporary Assignment $2,673 $5,000 $3,105 $5,000 $2,584 $5, WU - Acctg - Admin - temporary Assignment $13,606 $12,000 $8,244 $12,000 $3,885 $12, WU - Ops - Source - Temporary Assignment $801 $544 $1,613 $886 $482 $ WU - Ops - Purification - Temporary Assignment $376 $500 $551 $500 $714 $ WU - Ops - PowerAndPump - Temporary Assignment $2,100 $3,000 $1,629 $3,000 $1,056 $3, WU - Ops - TandD -Temporary Assignment $15,405 $15,000 $20,319 $15,000 $8,006 $15, Overtime $586,511 $542,000 $564,122 $551,000 $401,053 $556, WU - Admin - Admin - Overtime $20,472 $20,000 $23,458 $20,000 $22,982 $20, WU - IT - Admin - Overtime $58,522 $50,000 $51,329 $50,000 $37,221 $50, WU - Qual - Purification - Overtime $2,976 $4,000 $1,513 $4,000 $1,030 $4, WU - Eng - Admin - Overtime $25,731 $26,000 $18,926 $30,000 $11,896 $30, WU - Const - Admin - Overtime $909 $25,000 $20,270 $30,000 $12,285 $35,000 FY Summary Operating Expense Detail 3/16/2017 PAGE 16 6 of 15

17 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - Plan - Admin - Overtime $32,294 $30,000 $22,801 $30,000 $6,721 $30, WU - Bill - Collection - Overtime $82,736 $60,000 $54,803 $60,000 $52,549 $60, WU - Acctg - Admin - Overtime $81,160 $70,000 $74,220 $70,000 $56,314 $70, WU - Ops - Source - Overtime $4,113 $6,000 $1,404 $6,000 $1,687 $6, WU - Ops - Purification - Overtime $44,568 $50,000 $53,859 $50,000 $29,383 $50, WU - Ops - PowerAndPump - Overtime $1,082 $1,000 $3,117 $1,000 $9,571 $1, WU - Ops - TandD - Overtime $231,948 $200,000 $238,422 $200,000 $159,414 $200, Standby Pay $165,960 $181,495 $177,960 $181,594 $105,284 $181, WU - Admin - Admin - Standby Pay $0 $0 $45 $ WU - Ops - Purification - Standby Pay $11,678 $11,495 $11,630 $11,594 $6,536 $11, WU - Ops - PowerAndPump - Standby Pay $0 $0 $0 $ WU - Ops - TandD - Standby Pay $154,282 $170,000 $166,285 $170,000 $98,552 $170, Vacation & Compensatory Time Payout $40,921 $100,000 $0 $100,000 $0 $100, WU - Admin - Admin - Vacation Payout $38,305 $90,000 $0 $90,000 $0 $90, WU - Admin - Admin - Compensatory Time Payout $2,616 $10,000 $0 $10,000 $0 $10, FICA Taxes $345,291 $476,370 $374,248 $503,565 $233,045 $550, WU - Admin - Admin - FICA $36,488 $65,962 $41,736 $69,497 $25,163 $70, WU - IT - Admin - FICA $17,693 $18,381 $14,747 $16,059 $9,271 $19, WU - Qual - Purification - FICA $14,950 $15,982 $15,141 $16,720 $9,121 $17, WU - Eng - Admin - FICA $12,280 $21,833 $16,999 $24,794 $10,949 $31, WU - Const - Admin - FICA $18,158 $28,800 $19,263 $38,902 $13,821 $39, WU - Plan - Admin - FICA $16,758 $38,424 $25,361 $43,895 $16,872 $44, WU - Bill - Collection - FICA $35,226 $38,520 $34,909 $40,063 $22,014 $41, WU - Acctg - Admin - FICA $31,350 $37,801 $30,371 $42,890 $19,619 $43, WU - Ops - Source - FICA $12,269 $17,062 $11,915 $16,875 $7,416 $24, WU - Ops - Purification - FICA $17,008 $24,305 $19,665 $20,891 $11,305 $26, WU - Ops - PowerAndPump - FICA $10,077 $12,450 $9,366 $14,185 $6,981 $18, WU - Ops - TandD - FICA $123, $156,851 $134, $158,794 $80, $171, Retirement Contributions $740,082 $1,029,995 $1,166,860 $1,112,792 $540,041 $1,769, WU - Admin - Admin - Retirement Contributions $45,611 $142,270 $395,793 $148,195 $55,409 $218, WU - IT - Admin - Retirement Contributions $39,766 $39,646 $34,561 $35,687 $21,777 $62, WU - Qual - Purification - Retirement Contributions $34,087 $34,471 $35,236 $37,156 $21,229 $57, WU - Eng - Admin - Retirement Contributions $24,467 $47,091 $35,370 $55,099 $24,526 $103,419 FY Summary Operating Expense Detail 3/16/2017 PAGE 17 7 of 15

18 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - Const - Admin - Retirement Contributions $43,184 $62,117 $45,787 $86,448 $32,655 $127, WU - Plan - Admin - Retirement Contributions $41,316 $82,875 $62,381 $97,545 $42,864 $144, WU - Bill - Collection - Retirement Contributions $78,028 $83,082 $81,948 $89,030 $51,260 $133, WU - Acctg - Admin - Retirement Contributions $70,728 $81,532 $71,398 $95,312 $46,177 $140, WU - Ops - Source - Retirement Contributions $31,969 $36,801 $30,638 $37,500 $19,368 $80, WU - Ops - Purification - Retirement Contributions $38,042 $52,422 $45,442 $46,423 $27,075 $84, WU - Ops - PowerAndPump - Retirement Contributions $25,607 $29,382 $23,588 $31,522 $16,864 $60, WU - Ops - TandD - Retirement Contributions $267,275 $338,306 $304,718 $352,876 $180,836 $554, Life and Health Insurance $403,617 $567,885 $437,043 $565,869 $272,038 $521, WU - Admin - Admin - Life and Health Insurance $34,583 $55,670 $41,061 $56,487 $27,947 $59, WU - IT - Admin - Life and Health Insurance $14,420 $14,467 $11,757 $11,634 $7,185 $16, WU - Qual - Purification - Life and Health Insurance $11,519 $11,480 $10,617 $11,480 $6,023 $10, WU - Eng - Admin - Life and Health Insurance $16,192 $25,069 $16,685 $25,069 $11,831 $28, WU - Const - Admin - Life and Health Insurance $15,365 $27,144 $17,729 $27,144 $8,353 $21, WU - Plan - Admin - Life and Health Insurance $27,046 $45,478 $41,232 $45,478 $29,175 $57, WU - Bill - Collection - Life and Health Insurance $36,894 $44,424 $36,095 $44,424 $19,606 $33, WU - Acctg - Admin - Life and Health Insurance $37,835 $49,237 $39,221 $49,237 $24,441 $49, WU - Ops - Source - Life and Health Insurance $32,296 $33,274 $24,851 $33,274 $16,631 $29, WU - Ops - Purification - Life and Health Insurance $9,904 $14,762 $12,345 $14,762 $7,829 $16, WU - Ops - PowerAndPump - Life and Health Insurance $21,186 $29,093 $16,800 $29,093 $10,649 $17, WU - Ops - TandD - Life and Health Insurance $146,378 $217,787 $168,650 $217,787 $102,370 $181, Workers Compensation -$106,697 $0 $2,954 $0 $19,745 $ Unemployment Compensation $15,000 $15,000 $0 $15,000 $310 $15, WU - Admin - Admin - Unemployment Compensation $15,000 $15,000 $0 $15,000 $310 $15, Post-Employment Benefits (OPEB) $884,000 $914,000 $914,000 $968,000 $663,244 $1,002, WU - Admin - Admin - OPEB $884,000 $128,379 $914,000 $133,974 $67,462 $128, WU - IT - Admin - OPEB $32,288 $0 $27,124 $26,005 $32, WU - Qual - Purification - OPEB $34,609 $0 $36,250 $25,350 $36, WU - Eng - Admin - OPEB $43,112 $0 $49,018 $30,637 $60, WU - Const - Admin - OPEB $58,946 $0 $80,562 $39,628 $75, WU - Plan - Admin -OPEB $78,649 $0 $90,818 $50,487 $86, WU - Bill - Collection - OPEB $74,609 $0 $78,042 $62,474 $75, WU - Acctg - Admin - OPEB $70,119 $0 $81,437 $56,231 $77,058 FY Summary Operating Expense Detail 3/16/2017 PAGE 18 8 of 15

19 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - Ops - Source - OPEB $36,834 $0 $36,358 $22,498 $50, WU - Ops - Purification - OPEB $43,506 $0 $35,896 $32,731 $44, WU - Ops - PowerAndPump - OPEB $29,616 $0 $30,866 $20,678 $38, WU - Ops - TandD - OPEB $283,334 $0 $287,655 $229,062 $295, Professional Services - General $645,584 $2,437,257 $543,373 $2,011,548 $296,986 $2,296, WU - Admin - Admin - Professional Services - General $2,433 $263,250 $9,973 $290,800 $195 $290, WU - IT - Admin - Professional Services - General $168,675 $0 $0 $0 $0 $520, WU - Qual - Purification - Professional Services - General $61,372 $95,000 $79,673 $30,000 $7,448 $30, WU - Eng - Admin - Professional Services - General $173,528 $668,006 $141,545 $455,011 $30,191 $475, WU - Const - Admin - Professional Services - General $0 $290,000 $0 $200,000 $0 $50, WU - Plan - Admin - Professional Services - General $225,844 $585,000 $250,387 $779,736 $219,924 $595, WU - Bill - Collection - Professional Services - General $232 $105,001 $0 $0 $0 $50, WU - Acctg - Admin - Professional Services - General $13,500 $171,000 $61,795 $56,000 $39,228 $36, WU - Ops - TandD - Professional Services - General $0 $260,000 $0 $200,001 $0 $250, Professional Services - Accounting and Auditing $71,000 $100,000 $100,000 $190,000 $55,000 $120, WU - Acctg - Admin - Professional Services - Accounting and Auditing $71,000 $100,000 $85,284 $190,000 $55,000 $120, Other Services $44,243 $82,636 $46,412 $77,200 $33,881 $71, WU - Admin - Admin - Other Services $8,080 $21,836 $7,831 $16,300 $2,631 $5, WU - Bill - Collection - Other Services $10,200 $30,000 $17,501 $30,100 $18,987 $35, WU - Acctg - Admin - Other Services $25,637 $28,800 $20,581 $28,800 $11,663 $28, WU - Ops - TandD - Other Services $326 $2,000 $499 $2,000 $600 $2, Billing Costs $166,885 $292,380 $185,723 $255,500 $128,022 $206, WU - Bill - Collection - Billing Costs $166,885 $292,380 $185,723 $255,500 $128,022 $206, Public Relations - General $132,636 $272,850 $272,850 $78,500 $39,428 $92, WU - Admin - Admin - Public Relations - General $132,636 $272,850 $125,772 $78,500 $39,428 $92, Procurement Advertising $10,201 $4,700 $4,700 $10,000 $9,726 $10, WU - Admin - Admin - Procurement Advertising $10,201 $4,700 $5,747 $10,000 $9,726 $10, Communication Services $107,486 $118,512 $105,092 $126,980 $75,972 $119, WU/Admin/PowerAndPump - Communication Services $0 $0 $0 $7,000 $0 $ WU - IT - Admin - Communication Services $69,039 $80,632 $69,786 $79,500 $52,163 $79, WU - Ops - PowerAndPump - Communication Services $38,447 $37,880 $35,306 $40,480 $23,809 $40, Freight and Postage $4,661 $14,250 $14,250 $9,500 $4,145 $15, WU - Admin - Admin - Freight and Postage $2,615 $8,460 $2,771 $4,000 $3,807 $13,120 FY Summary Operating Expense Detail 3/16/2017 PAGE 19 9 of 15

20 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - IT - Admin - Freight and Postage $143 $3,290 $24 $3,000 $0 $ WU - Qual - Purification - Freight and Postage $1,903 $2,500 $1,300 $2,500 $338 $1, Rentals and Leases $88,787 $187,880 $187,880 $117,400 $78,873 $133, WU - Admin - Admin - Rentals and Leases $18,333 $22,000 $21,666 $22,400 $10,000 $53, WU - IT - Admin - Rentals and Leases $29,644 $95,880 $29,223 $45,000 $25,456 $30, WU - Ops - TandD - Rentals and Leases $40,810 $70,000 $35,383 $50,000 $43,417 $50, Insurance $63,449 $710,000 $710,000 $700,000 $18,222 $700, WU - Admin - Admin - Insurance $63,449 $710,000 $118,972 $700,000 $18,222 $700, County Service Charge $1,989,642 $1,989,642 $1,989,642 $1,991,250 $1,414,692 $2,122, WU - County Service Charge $1,989,642 $1,989,642 $2,122,038 $1,991,250 $1,414,692 $2,122, Utility Services $2,964,602 $3,701,000 $3,701,000 $3,246,000 $1,618,833 $2,773, WU - Admin - Admin - Utility Services $135,071 $210,000 $120,176 $200,000 $80,133 $177, WU - Ops - PowerAndPump - Utility Services $2,829,531 $3,491,000 $2,468,782 $3,046,000 $1,538,699 $2,596, Repairs and Maintenance - Water System $208,798 $591,000 $591,000 $366,000 $36,636 $271, W/U - Ops - Powerand Pump - Emergency Repairs $349,346 $0 $0 $0 $0 $ WU - Ops - Source - Repairs and Maintenance - Water System $148,857 $425,000 $0 $200,000 $8,698 $100, WU - Ops - TandD - Repairs and Maintenance - Water System $59,941 $166,000 $10,265 $166,000 $27,938 $171, Repairs and Maintenance - Other than Water System $257,553 $431,720 $431,720 $821,510 $177,519 $740, WU - Admin - Admin - Repairs and Maintenance - Other than Water System $14,367 $21,000 $22,947 $37,200 $6,841 $32, WU - IT - Admin - Repairs and Maintenance - Other than Water System $128,227 $173,370 $97,639 $571,960 $69,393 $525, WU - Qual - Purification - Repairs and Maintenance - Other than Water System $1,896 $2,350 $1,475 $2,350 $1,464 $2, WU - Ops - TandD - Repairs and Maintenance - Other than Water System $113,063 $235,000 $88,558 $210,000 $99,821 $180, Office Supplies $22,590 $45,000 $45,000 $44,367 $9,929 $22, WU - Admin - Admin - Office Supplies $0 $0 $0 $14,367 $0 $ WU - Accounting - Admin - Office Supplies $22,590 $45,000 $19,396 $30,000 $9,929 $22, Operating Supplies $923,727 $996,830 $826,458 $1,098,050 $520,589 $848, WU - Admin - Admin - Operating Supplies $199 $18,000 $2,701 $5,000 $1,396 $5, WU - IT - Admin - Operating Supplies $81,444 $77,500 $59,461 $68,000 $23,295 $58, WU - Qual - Purification - Operating Supplies $13,613 $16,000 $14,002 $15,000 $6,868 $15, WU - Eng - Admin - Operating Supplies $4 $1,080 $13 $300 $115 $ WU - Const - Admin - Operating Supplies $1,436 $2,500 $2,536 $4,500 $1,269 $4, WU - Plan - Admin - Operating Supplies $73 $3,250 $1,096 $3,250 $346 $1, WU - Bill - Collection - Operating Supplies $1,710 $2,800 $1,214 $2,500 $2,209 $2,500 FY Summary Operating Expense Detail 3/16/2017 PAGE of 15

21 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - Acctg - Admin - Operating Supplies $1,338 $4,700 $2,270 $3,500 $1,629 $2, WU - Ops - Source - Operating Supplies $146,329 $115,000 $133,429 $115,000 $31,764 $75, WU - Ops - Purification - Operating Supplies $33,943 $78,000 $57,876 $48,000 $19,869 $48, WU - Ops - PowerAndPump - Operating Supplies $40,477 $131,000 $102,417 $21,000 $19,127 $25, WU - Ops - TandD - Operating Supplies $223,300 $151,000 $449,443 $151,000 $146,326 $200, WU - Ops - PowerAndPump - Operating Supplies - Invty. Stock $0 $0 $0 $15,000 $5,032 $15, WU - Ops - TandD - Operating Supplie - Invty. Stock $379,862 $396,000 $0 $646,000 $261,345 $396, Fuel $111,959 $208,550 $208,550 $148,750 $41,983 $115, WU - Ops - TandD - Fuel $111,959 $208,550 $86,012 $148,750 $41,983 $115, Bulk Water Purchase $1,573,111 $2,099,326 $1,517,937 $1,916,826 $1,075,037 $1,825, WU - Ops - Source - Bulk Water Purchase (Reclass) $0 $0 $1,916,826 $1,075,037 $1,825, WU - Ops - TandD - Bulk Water Purchase $1,573,111 $2,099,326 $1,517,937 $0 $ Books, Publications, Subscriptions, and Memberships $25,976 $30,949 $30,949 $29,860 $20,212 $30, WU - Admin - Admin - Books, Publications, Subscriptions, and Memberships $23,562 $25,289 $13,302 $25,550 $18,918 $26, WU - IT - Admin - Books, Publications, Subscriptions, and Memberships $0 $500 $118 $500 $0 $ WU - Qual - Purification - Books, Publications, Subscriptions, and Memberships $0 $200 $0 $500 $0 $ WU - Eng - Admin - Books, Publications, Subscriptions, and Memberships $0 $200 $16 $200 $0 $ WU - Const - Admin - Books, Publications, Subscriptions, and Memberships $2,214 $2,850 $700 $1,700 $1,293 $1, WU - Bill - Collection - Books, Publications, Subscriptions, and Memberships $0 $500 $0 $0 $0 $ WU - Acctg - Admin - Books, Publications, Subscriptions, and Memberships $200 $1,410 $390 $1,410 $0 $ Books, Publications, Subscriptions, and Memberships - Board $444 $1,025 $1,025 $1,500 $225 $1, WU - Admin - Admin - Books, Publications, Subscriptions, and Memberships - Bo $444 $1,025 $450 $1,500 $225 $1, Training and Development $52,391 $97,024 $61,895 $92,530 $49,079 $112, WU - Admin - Admin - Training and Development $11,358 $22,799 $13,220 $21,150 $4,535 $25, WU - IT - Admin - Training and Development $8,142 $18,650 $3,808 $12,000 $6,928 $12, WU - Qual - Purification - Training and Development $229 $2,820 $0 $3,500 $0 $3, WU - Eng - Admin - Training and Development $809 $1,130 $390 $1,130 $405 $1, WU - Const - Admin - Training and Development $1,300 $2,500 $1,415 $6,250 $4,275 $9, WU - Plan - Admin - Training and Development $7,224 $3,000 $7,066 $3,000 $14,025 $20, WU - Bill - Collection - Training and Development $868 $5,650 $686 $6,000 $75 $1, WU - Acctg - Admin - Training and Development $2,034 $2,975 $558 $2,000 $230 $2, WU - Ops - TandD - Training and Development $20,426 $37,500 $34,752 $37,500 $18,607 $37, Travel and Per Diem $13,218 $81,125 $64,325 $79,720 $18,304 $114,050 FY Summary Operating Expense Detail 3/16/2017 PAGE of 15

22 Operating Expense Detail FY s Approved s Approved FYTD Exp. - As of 2/28/17) Proposed - FY OPERATING EXPENSES (Detail) WU - Admin - Admin - Travel and Per Diem $7,166 $41,515 $25,109 $38,670 $15,160 $58, WU - IT - Admin - Travel and Per Diem $2,273 $0 $20 $0 $0 $ WU - Eng - Admin - Travel and Per Diem $478 $3,760 $2,575 $3,760 $0 $3, WU - Const - Admin - Travel and Per Diem $1,857 $8,000 $0 $6,500 $213 $6, WU - Plan - Admin - Travel and Per Diem $0 $7,800 $0 $7,800 $0 $22, WU - Bill - Collection - Travel and Per Diem $0 $0 $0 $4,225 $0 $4, WU - Acc - Admin - Travel and Per Diem $1,444 $6,050 $5,009 $4,765 $0 $4, WU - Ops - Purification - Travel and Per Diem $0 $0 $0 $0 $0 $ WU - Ops - PowerAndPump - Travel and Per Diem $0 $0 $0 $0 $0 $ WU - Ops - TandD - Travel and Per Diem $0 $14,000 $6,518 $14,000 $2,930 $14, Travel and Per Diem - Board $5,226 $17,175 $6,967 $20,210 $3,339 $24, WU - Admin - Admin - Travel and Per Diem - Board $5,226 $17,175 $6,967 $20,210 $3,339 $24, Meeting Expense $33,907 $16,150 $16,150 $6,800 $2,034 $7, WU - Admin - Admin - Meeting Expense $27,973 $1,000 $1,090 $2,500 $2,034 $4, WU - Eng - Admin - Meeting Expense $0 $450 $0 $450 $0 $ WU - Const - Admin - Meeting Expense $1,640 $6,000 $1,104 $3,250 $0 $3, WU - Acctg - Admin - Meeting Expense $2,169 $1,200 $180 $600 $0 $ WU - Ops - TandD - Meeting Expense $2,125 $7,500 $913 $0 $0 $ Meeting Expense - Board $4,670 $11,250 $11,250 $7,090 $2,304 $9, WU - Admin - Admin - Meeting Expense - Board $4,670 $11,250 $3,751 $7,090 $2,304 $9, Interest Expense $4,013,376 $4,096,369 $3,716,337 $3,808,660 $2,494,233 $3,639, WU - Interest Expense $4,013,376 $4,096,369 $3,716,337 $3,808,660 $2,494,233 $3,639,100 Water Utility Fund Bond and Loan Repayment $4,390,954 $4,483,163 $4,483,163 $4,717,296 $4,550,431 $4,835, Debt Principal Repayment $4,390,954 $4,483,163 $4,565,889 $4,717,296 $4,550,431 $4,835, WU - Debt Principal Repayment $4,390,954 $4,483,163 $4,565,889 $4,717,296 $4,550,431 $4,835,459 Water Utility Fund - Non Cash Operating Expenses $7,152,877 $7,323,987 $7,065,427 $7,964,750 $4,872,681 $7,964, WU - Depreciation - Depreciation $6,707,560 $7,323,987 $6,513,305 $7,314,750 $4,506,324 $7,314, WU - Depreciation - Amortization $445,317 $0 $594,054 $650,000 $390,818 $650, WU - Bond Inflows & Outflows $0 $0 -$41,932 $0 -$24,460 $0 FY Summary Operating Expense Detail 3/16/2017 PAGE of 15

23 New Capital Outlay FY s FY FY FY FY Additons, /Transfers In (Out), Encumbrances Proposed FY Anticipated NTPs CAPITAL Outlay (New Appropriations) $296,146 $1,963,973 $1,377,260 $2,050,855 $680,436 $1,366,800 Water Utility Fund (Misc. Capital Purchases - Replacement) $290,925 $543,970 $780,622 $1,355,175 $296,881 $1,246, WU-Admin-RandR Capital Purchases $0 $ WU-IT-RandR Capital Purchases $30,174 $406,000 $326,638 $715,175 $56,218 $741, WU-Const/Admin/Capital Purchases $0 $10,000 $0 $10,000 $1,141 $55, WU-Fiscal-RandR Capital Purchases $0 $27,970 $27,714 $0 $0 $ WU-Ops-RandR Capital Purchases $260,751 $100,000 $426,269 $630,000 $239,522 $450,000 Water Utility Fund (Misc. Capital Purchases - New) $5,220 $1,420,003 $596,638 $695,680 $383,555 $120, WU-Admin-RandR Capital Purchases $0 $ WU-IT-Expansion Capital Purchases $0 $190,000 $0 $0 $0 $ WU-Qual-Expansion Capital Purchases $5,220 $0 $0 $0 $0 $ WU-Const/Admin/Capital Purchases $0 $10,000 $0 $10,000 $0 $10, WU-Fiscal-RandR Capital Purchases $0 $1,100,000 $502,507 $290,680 $312,086 $ WU-Ops-Expansion Capital Purchases $0 $120,003 $94,131 $395,000 $71,469 $110,000 CAPITAL OUTLAY - CIP (New Appropriations) $0 $20,587,647 $7,719,937 $39,396,375 $1,227,895 $32,040, Water Utility Fund (Capital Outlay - Rehabilitation & Replacement- Design) $0 $776,007 $97,779 $350,009 $13,994 $300, WU-Eng-ALLR-KW-07 Paua Valley Tank Repair $150,000 $150,000 $0 $0 Jan WU-Eng-ALLR-Gate Valves-Hydrant Laterals, Poipu Rd $50,000 $0 $0 $0 in house WU-Eng-34%R-PLH-28 Hanamaulu Main (Hoohana Street) $1 $1 $0 $ WU-Eng-ALLR-WK-11a Upper Wailua Houselots Main Rpl $1 $1 $0 $ WU-Eng-ALLR-Hanapepe Stream Crossing $0 $0 $0 $200, WU-Eng-ALLR-Jelly Factory BP Station Rehab $200,000 $0 $0 $0 in house WU-Eng-ALLR-PLH-32 Rice St Kapule Intersection $1 $1 $0 $ WU-Eng-Kilauea 1.0 MG tank (RR 10%) $15,000 $801 $0 $3,740 $0 contract amendment WU-Eng-Hanapepe-Eleele Connecting Pipeline HE-1 and HE-10 (RR 12%) $27,000 $96,977 $0 $10,254 $0 encumbered WU-Eng-Rehabilitate Puupilo Steel tank $250,000 $1 $0 $ WU-Eng-Kuhio Hwy (Hardy-Oxford) 16" Main Replace (R&R 56% of $100K) $84,000 $1 $0 $100, WU-Eng-Kuhio Hwy (N. Papaloa to Waikaea Canal) Main Replace (RR 56%) $1 $1 $0 $ WU-Eng-Makanui and Kuai Road Main Replacement (RR 37%) $1 $1 $0 $ KP-14a Koloa 6" and 12" Main Replacement plus additional area (Wailani and Waihohonou Roads part of KP-14) (RR 50%) $1 $1 $0 $ WU-Eng-Hoona, Hoone, Pane Road main replacement (RR 37%) $1 $1 $0 $ Kilauea Wells MCC rehab $0 $200,000 $0 $0 Aug-16 Water Utility Fund (Misc. Capital Purchases - Expansion) $0 $ " Cane Haul Road Main xxx Kuhio Hwy (Hardy-Oxford) 16" Main replacement (EXP 44% of $150K) xxx Kilauea 1.0 MG tank (EXP 90%) Water Utility Fund (Capital Projects - R&R - Construction) $0 $2,950,001 $892,868 $7,799,675 $315,299 $7,091, WU/Cns/1.45%R-18In Cane Haul Main (1.45% RR of $3.15M) $0 $0 $0 $45,675 $0 $0 Mar WU/Const/Capital Outlay/09-01, Yamada Tank, Clearwell & connecting PL $0 $1 $0 $4,700,000 $0 $4,860,025 March WU-Cns-ALLR-13-07, Koloa Well D Repairs (s/b 20, per Dustin) $0 $300,000 $0 $450,000 $315,299 $0 Mar WU-Cns-ALLR-XX-YY, HE-14, Eleele Booster Rehab $0 $350,000 $0 $550,000 $0 $577,500 March WU-Cns-44%R Ani-01b-Anini Rd WL DOW-Princvl $0 $1,000,000 $0 $572,000 $0 $0 Mar-17 FY Summary New Capital Outlay 3/16/2017 PAGE of 15