ANNUAL REPORT YEAR ENDING MARCH 31, 2016 AND BUDGET - YEAR ENDING MARCH 31, 2017

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1 MUICIPAL AUTHORITY OF WESTMORELAD COUTY Westmoreland County, Pennsylvania AUAL REPORT YEAR EDIG MARCH 31, 216 AD BUDGET - YEAR EDIG MARCH 31, 217 May 216 Prepared by: Corporate Office 14 Ligonier St., PO Box 853 Latrobe, PA 1565 Phone: Fax: GTECorporate@J?ibson-thomas.com

2 14 Ligonier St., PO Box 853 Latrobe, PA 1565 Phone: Fax: May 11, 216 Members of the Board Municipal Authority of Westmoreland County P.. Box 73 Greensburg, Pennsylvania 1561 Subject: Municipal Authority of Westmoreland County Annual Report and Operating Budget Gentlemen: In accordance with the requirements of the Trust Indenture, dated October 1, 1993, the following Annual Report for the year ending March 31, 216 and Recommended Budget for the fiscal year beginning April 1, 216, including a statement of ordinary budget needs for each quarter of the ensuing fiscal year, we, as Consulting Engineer for the Municipal Authority of Westmoreland County, submit our report setting forth our findings as required by the Indenture. We take this opportunity to express our appreciation to Board Members of the Municipal Authority of Westmoreland County, the Solicitor, the Accountant and Management Firm for their cooperation in the pursuit of our duties as Consulting Engineer to the Authority. Respectfully submitted, EERIG CO., IC. MJG/beg Enclosures ESTABLISHED 1916 Harrisburg Pittsburgh Indiana Clarion Richmond Ft. Myers

3 MUICIPAL AUTHORI OF E MO LAD COU County of Westmoreland, Commonwealth of Pennsylvania AUAL REPORT - YEAR EDIG MARCH 31, 216 AD BUDGET - YEAR EDIG MARCH 31, 217 The Authority Board is currently made up of the following members: Members of the Board Randy Roadman Chairman Bruce Robinson Vice Ch airman Jerome DeFabo, Sr. Secretary Dr. Jawdat ikoula Treasurer Vicki Vittone Assistant Secretary-Treasurer The principal administrators and advisors are as follows: Resource Development & Management, Inc. - Manager Christopher H. Kerr - Resident Manager Scott Avolio, Esq. - Solicitor Sarp & Company - Auditor The Bank of ew York Mellon - Trustee Gibson-Thomas Engineering Co., Inc. - Consulting Engineers

4 MUI LAU HO M DC U County of Westmoreland, Commonwealth of Pennsylvania AUAL REPORT - YEAR EDIG MARCH 31, 216 A D BUDGET - YEAR EDIG MARCH 31, 217 TABLE OF COTETS ITRODUCTIO TRUST IDETURE REQUIREMETS REVIEW OF PAST YEAR OPERATIOS BUDGET OF OPERATIG REVEUES AD EXPESES CAPITAL EXPEDITURES BUDGET RATES ISURACE MAITEACE COCLUSIOS PAGE SCHEDULE I SCHEDULE II SCHEDULE Ill SCHEDULE IV SCHEDULE V SCHEDULE VI SCHEDULE VII SCHEDULE VIII SCHEDULE IX SCHEDULES BUDGET - SUMMARY BUDGET - DETAIL BUDGET - CAPITAL EXPEDITURES HISTORICAL COMPARISO ISURACE CURRET WATER RATES RECOMMEDED WATER RATES CURRET SEWAGE RATES MISCELLAEOUS FEES PAGE A-1 A-2 A-7 A-8 A-9 A-1 A-11 A-12 A-13 EXHIBIT I EXHIBIT II EXHIBIT Ill EXHIBIT IV EXHIBITS COMPARISO OF REVEUES AD EXPESES RECORD OF CUSTOMERS RECORD OF QUATITY OF WATER SOLD OPERATIG REVEUE DETAILS PAGE A-14 A-15 A-16 A-17

5 The Municipal Authority of Westmoreland was on April 1 1 under the Municipality Authorities Act of Since this date the Authority acquired many water distribution and treatment systems throughout Westmoreland, Fayette, Armstrong, Indiana and Allegheny Counties. The Authority has interconnected them, developed new sources of supply and extended water service into many of the communities in these counties not previously served with potable water. As of March 31, 216, the Authority is providing service to over 12,442 water customers. The Authority has expanded its operation and management mission to include wastewater collection and treatment. The Authority has acquired six wastewater systems. The six wastewater systems are in Avonmore Borough, Westmoreland County, in 21; in Ligonier Borough, Westmoreland County, in 26, in White Oak Borough, Allegheny County, in 27, the 1-7 Industrial Park, Smithton, Westmoreland County in 211; the City of Jeannette Municipal Authority, Westmoreland County, in 215; and the Youngwood Borough Authority system in Westmoreland County in 216. As of March 31, 216, the Authority is providing service to 8,832 wastewater customers. Throughout its history, the Authority has undertaken significant capital improvement projects to improve its redundancy, distribution, supply and treatment. In 25 the Authority began numerous projects, comparable in scale to the larger improvements undertaken in its past. With this latest program of capital improvements, the Authority will improve its ability to distribute water throughout its service area. It will improve the overall reliability of the water system by providing increased redundancy and by retiring aging facilities. It will improve the quality of public water service to several localized portions of its service area. It will also improve the efficiency of its operations. The Authority moved its headquarters and consolidated its operations to a central location in 27. For the past four decades, the Authority's principal office and operations center had been located on Route 3, east of Greensburg, and it operated three remote distribution/maintenance centers in McKeesport, Scottdale and Vandergrift. In addition, the Authority operated a maintenance center in Rostraver. The Authority's office and operations center is situated in the ew Stanton area, close to the intersections of Interstate Route 7, Interstate Route 76 and Route 66. The remote distribution and maintenance centers and garage have been closed and sold and all non-treatment operations are now consolidated in the new facility thus improving the operation efficiency of the Authority. On March 1, 211 the Authority started construction of a major system improvement to the Ligonier System. This includes the construction in excess of 16.5 miles of 16" diameter transmission line to interconnect the Greater Johnstown Water Authority. This will provide a source of potable water that will enable the Municipal Authority of Westmoreland County system to grow and develop in Eastern Westmoreland County and provide, over time, other interconnections. This project was completed in December of 212, flushing and testing has been finalized, with complete switch over to the Greater Johnstown Water Authority source accomplished in April 213.

6 213 the Authority 11 as the Authority Consulting plan consists of energy saving upgrades, major capital improvements to transmission lines, pump stations and filtration plants. The work will be permitted, designed and constructed over the next 5 years from May 213, under the guideline and requirements Trust Indenture. During 214, the Authority entered into a significant water sales agreement with the Monroeville Municipal Authority and Plum Borough Municipal Authority. The agreement required construction of two (2) major pump stations, a chemical feed building, various valve pits and flowmeters and 12,35 l.f. of 24" transmission lines. All of this work was substantially completed in 215 with testing and on time delivery of the contracted amount of water in March and April 216. The Authority also contracted with PA American Water Company to deliver an additional 1 MGD of treated water to the PA American Water Company, Fayette County system and with the Belle Vernon Water Authority to provide an additional.4 MGD to their existing system. Also, after approximately 9 years of negotiations and planning, the Municipal Authority of Westmoreland County received indication that the notice to proceed on a new pumping and supply system to serve a new gas-fired electric generation facility with approximately 8.5 MGD of potable water to their new facility, was forthcoming. The firm, Tenaska Co, will pay for all of the capital costs (approximately $3 million) for adding the facilities needed to supply this customer. The facilities will include plant upgrades at the Indian Creek Plant, a new pump station and approximately 17 miles of transmission lines and appurtenances. Work related to the 212 Capital Improvement Plan proceeded on schedule with approximately 6% of the funding expended by the end of the 216 budget year, of the many projects funded, some of the most significant include installation of approximately six (6) new system pump stations with SCADA control systems, the purchase of 16 new emergency generators for critical pump stations, construction of four (4) new water tanks, structural and process improvements to all three treatment plants, the installation of approximately 22, l.f. of 48" transmission lines and other significant distribution system improvements. User rates were adjusted accordingly to cover the additional debt requirements of the issue. The projects will add long term stability and structural integrity to the Authority's system, and allow them to supply both existing and future customers better. 2

7 TRUST IDETURE REQUIREMETS 7.11 with Mellon, as as of October 1, 1993, it is required that your Consulting Engineer shall prepare and file with the Authority in each year a report on the following engineering and financial matters: A. His advice and recommendations as to the proper maintenance, repair and operation of the water system during the ensuing fiscal year, and his estimate of the aggregate amount which should be expended during the ensuing fiscal year for operating expenses, and his estimate of the Gross Revenues of the Municipal Service System. 8. His advice and recommendations as to capital additions which should be constructed or otherwise acquired during the ensuing fiscal year and his estimate of the amounts of money necessary for such purposes. C. His advice and recommendations as to any necessary or advisable revision of rates, rents and charges for water. D. His findings as to whether the properties of the water system have been maintained in good repair and sound operating condition and his estimate of the amount, if any, required to be expended to place such properties in such condition and the details of such expenditures and the approximate time required therefore. 3

8 Operating revenue for the fiscal year ending March 31, 216 for the water system is projected to $69, 162,898, an of (.3%) from prior fiscal primary reason for the operation revenue increase was due to the increase in water sales from the previous year in residential, raw water, industrial and municipal sales of water. The wastewater system operating revenue for the fiscal year ending March 31, 216 is projected to be $3,945,92, an increase of $994,645 (33%) from the prior year. The total combined operating revenue for both the water and wastewater systems is projected to be $72, 13,818, an increase of $1,243,63 (1. 75%) compared to the revenues of the previous year. Operating expenses for the fiscal year ending March 31, 216 for the water system is projected to be $5,888,714, an increase of $2,316,277 (4.7%) over the prior fiscal year's operating expenses. The operating expenses of the wastewater system are projected to be $3,227,51, an increase of $545,869 (2%) over operating expenses experienced the prior fiscal year. The total combined operating expenses for both the water and wastewater systems for the fiscal year ending March 31, 216 is projected to be $54, 115,765, an increase of $2,862, 146 (5.5%) compared to the prior year. During the fiscal year ending March 31, 216, the total number of customers served by the water system increased by 24 customers. The total number of wastewater customers served increased by 4, 147 over the previous year. As of March 31, 216, the Authority served 12,442 water customers and 8,832 wastewater customers. Operational data, including numbers of customers served and sales for the past six years are shown in the Appendix on Schedule IV. Also shown on Schedule IV are details of revenues and expenses for the same period. In the Appendix on Exhibit I, a comparison of revenues and expenses from 27 to present is shown graphically. On Exhibit II, the record of customers from 27 to present is shown graphically. Over the past 1 years, the Authority's potable water customer base increased significantly. During that same period, however, the total volume of potable water sales has continued to decline. This trend of declining water consumption per customer has been a common experience in recent years among most water utilities due to conservation, recycling and economic factors. Reference Exhibit II. Elevated rainfall conditions in 213 have helped to accentuate this decline. 4

9 volume water 1, 6 is,_..,.,_,."'n on Exhibit Ill in the Appendix. Similarly, the different categories of the Authority's annual operating revenue from April 1, 26 through March 31, 216 are shown graphically on Exhibit IV in the Appendix. The majority of Authority revenue comes from direct potable water to Authority customers and charges for fire protection. The Authority is relying less upon bulk water sales to other water utilities and upon sales of unfiltered (raw) water as raw water use may be somewhat discretionary and as bulk water customers may eventually find other sources for their water supply. The amounts received from those two revenue categories may change radically from year to year. Direct potable water and wastewater sales to Authority customers and payments by Authority customers and municipalities for fire protection services, however, are not discretionary and are not prone to high volatility. In 212 the Authority did enter into long term agreements with three major customers Monroeville Municipal Authority, Plum Borough Municipal Authority and a commercial entity Tenaska Pennsylvania Partners, LLC. These entities have contracted for approximately 17mgd of potable water usage to be delivered in 216 and 219 respectively. The Authority has been successful in meeting the never ending challenge to improve the quality of services it provides to its customers while maintaining reasonable prices. During the past several years, dramatic increases in pipe, chemicals, fuel and other commodities caused sharp increase in many of the Authority's expense items. Perhaps even more challenging, throughout the past several decades new regulations governing the treatment and delivery of water have required many additional expenditures for capital improvements, training and increased professionalism of its staff, increased sampling, more comprehensive record keeping, and enhanced security. Despite these financial pressures, the Authority has had success in controlling its costs while it continually improved the quality of the services it provided. In October 28, the Authority successfully conducted a public auction of natural gas rights to a portion of its property. The Authority realized income for the drilling rights in October 28 in the amount of $6,98,228 as a result of the sale. Further, the Authority is expected to enjoy revenue for years to come from the on-going sale of natural gas as a result of the transaction, through gas sales and water sales related to gas well drilling operations. In 216 the Authority is projecting miscellaneous revenue primarily due to gas drilling lease royalties and other miscellaneous revenues of approximately $5,94,38. 5

10 The proposed Budget is presented on Schedule I in the Appendix. Using the current levels of demand as a basis, the estimated Operating Revenues for the fiscal year ending March 31, 217, are projected to be a total of $85,695,. Of that total operating revenue, $75, 19, is expected from water operations, $6,525, is expected from wastewater operations and $3,98, from miscellaneous revenue and royalties. Operating expenses are estimated to be $55,54,5, with $51,854,5 being related to water operations and $3,65, being related to wastewater operations. A conservative approach was employed in projecting anticipated amount of water and wastewater sales for the new budget year. Water sales for the budget year were based upon the average of actual monthly sales from April 1, 215 through March 31, 216. CAPITAL EXPEDITURES BUDGET The Maintenance Capital Expenditures Budget for the Authority is presented on Schedule Ill, page 7 in the Appendix. The Maintenance Capital Expenditures Budget presents a program of improvements which is, for the most part, routine in nature. The Authority normally undertakes capital improvements of a similar type every year. The estimated total cost of the recommended maintenance capital improvements is $5,754,225. Included in the funding is a total of $3,4,225 to be derived from operations during the coming fiscal year. In addition to the improvements itemized in the Maintenance Capital Expenditures Budget, the Authority committed itself to a large program of capital improvements which is to be supported by a rate increase enacted February 213, funding the bond financing. On December 1, 25, the Authority issued bonds in the amount of $57,45,. Together with other funds of the Authority, the 25 borrowing supported a program of capital improvements having an estimated cost of $61,284,. Most of the 25 funds, approximately two-thirds of the total, were used to support the construction of transmission and distribution system facilities. The remainder was used for water storage facility improvements, treatment plant improvements and for general operating facilities. On ovember 3, 26, the Authority issued bonds in the amount of $73,383, 154. The proceeds of the 26 borrowing were used to refinance the 25 borrowing, purchase the wastewater system in White Oak Borough, Allegheny County, purchase the water and wastewater systems in Ligonier Borough, Westmoreland County, and generate additional funds which were used for capital improvements to the water distribution system. The Authority has acquired an additional wastewater treatment system at the 1-7 industrial park from Westmoreland County. This acquisition will generate additional wastewater revenue. 6

11 In 212 the Authority through their Manager and Engineer developed a 5 year plan to continue upgrades to the Authority's distribution, treatment, storage, pumping and wastewater facilities. plan with an estimated cost of approximately $141,, was formulated to address the critical components of the system being affected by age, natural deterioration and increased demand on the system. This program is supported by a bond financing in May of 213 in the amount of $132, 11,. The proceeds of this issue are being used for the financing through 217. The Authority is also projecting an additional financing in 217 for the next plan of capital improvements to the system. The Income and Budget reflect this planned financing. RATES On ovember 8, 212, the Authority authorized a 25% increase to their water and wastewater service rates to address anticipated expenses and obligations for existing and future debt service and the maintenance capital funding requirements for the next fiscal year. The balance of the Maintenance Capital work budgeted for 215 will be allotted from existing capital reserves and operating reserve. The Authority adopted an increase to its water and sewer rates effective on all bills rendered on or after February 11, 213 to insure the availability of fuhds. Additionally, the Authority adjusted its miscellaneous fees to cover rising costs. The Authority again authorized raising their rates in April 216 by 25%, with subsequent increases in 217 and 218 by an additional 7% each year to support a planned capital improvement plan in the fall of 217. The schedule of current water rates is shown in the Appendix on Schedule VI and the schedule of current wastewater rates is shown in the Appendix on Schedule VI I. The Authority has been effective in controlling its costs despite the pressures of an expanding customer base and its continuing substantial investments in capital improvements. The Authority has raised its water rates six times since October 1993; in October 1998, in April 22, in June 24, in April 26, in April 29, in February 213 and in April 216. As is shown on the following table, the recommended Budget provides $28,992,275 available to meet the current annual bond debt service obligation of $27,981,788 and an anticipated increase in the bond payment in 217 for the next capital improvement plan of

12 et Income ADD: Partial balance in revenue fund - end of prior fiscal year. Bond interest expense.... Bond discount amortization.... Depreciation provision.... Other Post-Employment Benefits.... LESS: Restricted interest income.... Tapping fees.... Contributed capital.... Annual debt service obligations for Pennvest loans (cash - principal and interest).... Capital surcharge funding.... Required minimum deposit to the Capital Expenditures Fund.... $ 8,56, 5,9, 9,2, 5,, $ 28,66, (2,445,) (85,) (1,9,) (1, 765,) (34,) (3,4,225) AVAILABLE FOR BOD DEBT SERVICE.... Less bond debt service (cash obligation).... SURPLUS AVAILABLE AFTER MEETIG ALL OBLIGATIOS ICLUDIG BOD DEBT SERVICE.... Less additional deposit to the Capital Expenditures Fund.... SURPLUS AVAILABLE..... $ 1,26,5 (9,998,225) $ 28,922,275 (27,981,788) $ 94,487 () $ 94,487 ISURACE The insurance coverage currently in force is listed on Schedule V in the Appendix. MAITEACE The Authority has an aggressive maintenance program to find and repair leaks and to maintain the standard of service that customers are accustomed to receiving. The Authority continues to implement a very aggressive leak detection program. The budget for the year ending March 31, 217 allocates $5, 754,225, more than 6. 7% of the anticipated total operating revenues, toward maintenance capital projects. 8

13 The Authority system, with its 64 water storage tanks, 43 water pumping stations, one major reservoir, four modern water treatment plants, four wastewater treatment plants, and more than 2,4 miles of water transmission distribution mains, continues to be maintained very effectively, ensuring safe and dependable service to its over 129, water and wastewater customers. COCLUSIOS The Authority has continued to provide quality service to its customers at affordable rates through sound management and operational practices. The Authority has been able to control costs in consideration of the current economic conditions which has effected the growth of new customers as well as a decrease in usage of both water and wastewater customers. The Authority has also continued to authorize capital expenditures to provide system redundancy as well as improved efficiencies. The use of existing employees to reduce the cost of some capital projects is an example of the productive use of resources without requiring any unnecessary costs. All of the aforementioned items demonstrate the Authorities ability to be an industry leader in providing quality utility services in the ahead. With the continuing challenges of maintaining a system of the magnitude of MAWC, the Authority authorized the development of a long range plan for growth and improvements. This plan was funded through additional borrowing to meet the needs of the Authority going forward. This plan was developed in the 212/213 operating year, and is being implemented in the following five years and will address the needs of the system going forward, in a prudent yet effective manner. Also, considering the present market for interest rates related to financing infrastructure, the Authority has made plans to act on another plan beyond the present five years. Authority rate increases and additional borrowing will lead to even more improvements to the system through 221. The rates are in place and a draft plan accepted for the 217 operating year. 9

14 1.. OPERATIG BUDGET FOR THE YEAR EDIG MARCH 217 QUARTER QUARTER QUARTER QUARTER YEAR EDIG EDIG EDIG EDIG EDIG 6/3/216 9/3/216 12/31/216 3/31/217 TOTAL OPERATIG REVEUES $2,49,5 $21,757,1 $2,755,4 $22,692, $85,695, OPERA TIG EXPESES Source of Supply $212,7 $244,6 $223,8 $192,4 $873,5 Treatment System 1,75, 1,833,3 1,864,4 2,3,8 7,433,5 Distribution 3,85,2 4,78, 1 3,337,8 2,723,9 13,225, Engineering 242,3 263,7 31,6 277,4 1,85, Distribution Facilities 856,25 954,75 929,95 1,64,55 3,85,5 Wastewater System 817,5 914, 1 953,3 965, 1 3,65, Commercial and General 5, 156,7 5,88, 5,157,1 1,3,2 25,432, TOTAL OPERA TIG EXPESES $12,75,65 $13,376,55 $12,767,95 $17,284,35 $55,54,5 OPERA TIG ICOME $8,414,85 $8,38,55 $7,987,45 $5,47,65 $3,19,5 OTHER ICOME* 1,33,9 1,43,9 1,358,4 1, 183,8 5,25, GROSS ICOME $9,718,75 $9,784,45 $9,345,85 $6,591,45 $35,44,5 DEBT EXPESE Interest $2,58,6 $2,76,7 $2, 158,8 $2,265,9 $8,56, Bond Discount Amortization 1,484, 1,478, 1,468, 1,47, 5,9, Trustee Fees and Expenses 14,5 14,1 28, 13,4 7, TOT AL DEBT EXPESE $3,557, 1 $3,568,8 $3,654,8 $3,749,3 $14,53, EARIGS BEFORE MAAGEMET FEE, ADMIISTRATIO EXPESES AD DEPRECIATIO $6,161,65 $6,215,65 $5,691,5 $2,842, 15 $2,91,5 MAAGEMET FEES $3, $3, $3, $3, $1,2, ADMIISTRATIVE EXPESES Officers Compensation $ $ $ $ $ Legal Fees 42,5 42,5 42,5 42,5 17, Engineering Fees 2,5 2,5 2,5 2,5 1, Accounting Fees 11,9 23,4 11,7 13, 6, Other Administrative Expenses 2,49 2,49 2,49 2,53 1, TOT AL ADMIISTRATIVE EXPESES $59,39 $7,89 $59, 19 $6,53 $25, TOTAL MAAGEMET FEE AD ADMIISTRATIVE EXPESES $359,39 $37,89 $359, 19 $36,53 $1,45, EARIGS BEFORE DEPRECIATIO $5,82,26 $5,844,76 $5,331,86 $2,481,62 $19,46,5 DEPRECIATIO PROVISIO 2,295, 2,295, 2,295, 2,315, 9,2, ET ICOME (LOSS) $3,57,26 $3,549,76 $3,36,86 $166,62 $1,26,5 * Includes interest income, contributed capital, and tapping fees Appendix Page 1

15 OPERA TIG BUDGET FOR THE YEAR EDIG MARCH 217 QUARTER YEAR EDIG EDIG EDIG EDIG EDIG 6/3/216 9/3/216 12/31/216 3/31/217 3/31/217 WATER SALES Residential $12,69,6 $12,953,4 $12,337,2 $13, 139,8 $5,5, Commercial 3, 141,7 3,34,8 3,137,8 3,365,7 12,95, Industrial 393,2 393,8 446, 497, 1,73, Private Fire 34,8 343, 345,4 37,8 1,4, Public Fire 13,5 13,7 13,8 14, 415, Municipal 489,5 486,4 478, 461, 1 1,915, Raw Water 1,8 7,7 5,7 5,8 3, Sale for Resale 1,425,9 1,446, 1,342,8 1,845,3 6,6, Miscellaneous 63,9 77,6 3,7 17,8 19, TOTAL WATER SALES $18,38,9 $19,116,4 $18,227,4 $19,87,3 $75, 19, WASTEWATER SALES Residential $1,75,7 $1,81,8 $1,78,5 $1,564, $4,8, Commercial 149,6 141,9 147,7 135,8 575, Industrial 2,7 18,8 18,6 16,9 75, Municipal 249,6 276,6 265, 1 258,7 1,5, Discounts Forleited, Penalties 6,2 6,9 6, 5,9 25, TOT AL WASTEWATER SALES $1,51,8 $1,526, $1,515,9 $1,981,3 $6,525, OTHER OPERA TIG REVEUES Discounts and Penalties $221,2 $248,6 $243,4 $246,8 $96, Royalties $52, $491, $492, $497, $2,, Other Operating Revenue 195,8 374,6 316,8 172,8 1,6, Billing Services 27,3 22, 28,3 22,4 1, Provision for Uncollectible (14,5) (21,5) (68,4) (35,6) (14,) TOT AL MISCELLAEOUS ICOME $949,8 $1,114,7 $1,12, 1 $93,4 $3,98, TOT AL OPERA TIG REVEUES $2,49,5 $21, 757, 1 $2,755,4 $22,692, $85,695, SOURCE OF SUPPLY Operating Labor $57,9 $67,6 $7,3 $6,2 $256, Operating Labor Overtime ,5 Supervisory Salaries 24, 28, 29, 1 24,9 16, Water Purchased 65, 65, 65, 65, 26, Supplies and Expenses 52, 68, 42,6 27,4 19, Security 13,5 15,8 16,5 14,2 6, TOTAL SOURCE OF SUPPLY $212,7 $244,6 $223,8 $192,4 $873,5 TREATMET SYSTEM Appendix Page 2

16 EDIG EDIG EDIG EDIG EDIG $494,7 $577,1 $6,3 $513,9 $2,186, Labor Overtime 18, 21, 22, 19, 8, Salaries 175,8 25, 1 213,4 182,7 777, 227, 261, 234, 22, 942, GAC Sweeney WTP 39,6 39,6 39,6 4,2 159, Sludge Removal 7,6 7,6 56,8 141, 339, Supplies and Expenses, Operations 48, 54, 1 79, 1 37,8 219, Purification Meals ,3 4, Supplies and Expenses, Maintenance 11,6 112, 1 15, 95,3 423, Supplies and Expenses, Land Management 4,8 4,8 4,8 5,1 19,5 Power Purchased Plants 472, 469, 465, 694, 2, 1, Treatment Plant Utilities 41, 16, 41,5 74,5 173, Security 2, 2, 2, 6, 12, TOTAL TREATMET SYSTEM $1,75, $1,833,3 $1,864,4 $2,3,8 $7,433,5 DISTRIBUTIO Operating Labor $35,7 $49, 1 $425,6 $364,6 $1,55, Supervisory Salaries 133,5 155,7 162, 138,8 59, Supervisory Labor, Foremen 237,6 277,2 288,4 246,8 1,5, Supervisory Labor, Foremen Overtime 17, 1 19,9 2,6 17,4 75, Supplies and Expenses 74,7 78,9 85,2 91,2 33, Supplies and Expenses-Uniforms & Shoes 3, 2, 31,4 63,6 1, Supplies and Expenses-Utilities 38,7 33, 1 35,4 52,8 16, Garage and Auto Expense 61, 1 54,4 46,9 47,6 21, Maintenance Equipment 22,9 19,1 21,7 36,3 1, Maintenance to Mains Labor 678,6 791,8 823,9 75,7 3,, Maintenance to Mains Labor overtime 129, 15,5 156,5 134, 57, Maintenance to Mains - Materials 475,6 611,3 486,2 526,9 2, 1, Maintenance to Mains Paving 732, 1,327,1 68,5 132,4 2,8, Maintenance to Mains Backhoe 99,6 15,3 19,8 15,3 42, Maintenance to Mains Meals 7,2 1,5 1,9 18,4 47, Maintenance to Mains Permit Fees 23,9 32,2 24,8 42, 1 123, TOTAL DISTRIBUTIO SYSTEM $3,85,2 $4,78, 1 $3,337,8 $2,723,9 $13,225, EGIEERIG Operating Labor $147, $171,5 $178,5 $153, $65, Operating Labor Overtime 2,4. $2,7 $2,8 $2, 1 $1, Supervisory Salaries 61,2 71,3 74,2 63,3 27, Supplies and Expenses 24, 12,6 22,7 35,7 95, Landfill Expenses 7,7 5,6 23,4 23,3 6, TOT AL EGIEERIG $242,3 $263,7 $31,6 $277,4 $1,85, DISTRIBUTIO FACILITIES Supervisory Salaries $96,3 $112,4 $116,9 $1,4 $426, Distribution Facilities Labor 139,2 162,4 169, 144,4 615, Distribution Facilities Labor Overtime 9, 1,5 1,9 9,6 4, Purchased Power Pumping 269,2 29, 274,9 415,9 1,25, Distribution Facilities Meals , Appendix Page 3

17 EDIG EDIG EDIG EDIG EDIG Distribution Facilities Supplies & 53,3 57,3 56,5 87,9 255, Distribution Facilities Materials 37,9 42,3 34,3 5,5 165, Maintenance to Tanks Materials 3, 3, 1, 1, 8, to Labor 83,4 97,2 11, 1 86,3 368, Maintenance to Hydrants Labor Overtime 9 1, 1 1, 1 9 4, Maintenance to Hydrants Materials 9,6 7,7 9,5 13,2 4, Maintenance to Hydrants Supplies & Expens 12,9 13,3 12,9 2,9 6, Maintenance to Hydrants Meals Maintenance to Valves Labor 43,8 51, 1 53,2 45,9 194, Maintenance to Valves Labor Overtime 4,5 5,3 5,6 4,6 2, Maintenance to Valves Materials 2,2 4, 2,5 1,3 1, Maintenance to Valves Supplies & Expense 6,8 5,9 7,3 1, 3, Maintenance to Valves Meals , Leak Detection Labor 4,2 46,9 48,9 42, 178, Leak Detection Labor Overtime , Leak Detection Materials 1,5 1,5 1,5 1,5 6, Leak Detection Supplies & Expense 12,3 12, 1 1,5 15,1 5, Leak Detection Security 2,5 2,5 2,5 2,5 1, TOTAL DISTRIBUTIO FACILITIES $856,25 $954,75 $929,95 $1,64,55 $3,85,5 WASTEWATER SYSTEM Operating Labor $187,8 $219,1 $227,9 $195,2 $83, Operating Labor Overtime 4,5 5,3 5,6 4,6 2, Supervisory Salaries 58,8 68,6 71,4 61,2 26, Supplies and Expenses 83,7 85,8 1,9 129,6 4, Sludge Removal 13,7 16,7 2,6 19, 7, Chemicals 1,3 5,4 1,5 1,8 1, Purchased Power 5,7 63,5 58,7 77, 1 25, Outside Treatment Services 345, 381, 39, 384, 1,5, Utilities 3,9 1,7 6,2 13,2 25, Insurance 54,3 54,3 54,3 67,1 23, Billing and Postage 8,7 8,7 8,7 8,9 35, Computer Supplies and Expense 1, 1 1, 1,4 1,5 5, Maintenance to Mains 3, 1,7 5, 5,3 15, Security 1, 1,3 1,1 (3,4) TOTAL WASTEWATER SYSTEM $817,5 $914, 1 $953,3 $965, 1 $3,65, COMMERCIAL AD GEERAL Clerical Labor $447,9 $522,6 $543,8 $465,7 $1,98, Meter Reading & Collections Labor 226,2 263,9 274,7 235,2 1,, Meter Reading & Collections Labor Overtime Meter Reading & Collections Expenses 36,5 35,3 34,3 43,9 15, Supervisory Salaries 247,8 289,1 3,7 257,4 1,95, Maintenance Small Repair Parts Service Labor 282,9 33, 343,3 293,8 1,25, Service Labor Overtime 11,4 13,3 13,7 11,6 5, Service Supplies and Expense 64, 62,6 57,9 65,5 25, Service Meals ,2 2, Appendix Page 4

18 EDIG EDIG EDIG EDIG EDIG Office Supplies and Expense 72,3 19,2 97,2 96,3 375, Office Forms and 8,3 4, 6,2 6,5 25, Office Utilities 22,7 24,7 23,3 34,3 15, Forms and 18,3 8,6 71, 9, 1 35, Public Relations Expense 7,6 14,1 6,3 7, 35, Training 8, 4,5 9,2 3,3 25, Postage 149, 1 11, 1 114,3 116,5 49, General Insurance Expense 46,8 4,9 41, 41,3 17, Workers Compensation Insurance 168, 153, 4,5 38,5 4, Auto Insurance 25,8 25,2 4,2 4,8 6, General Liability Insurance 261,7 132,4 72,9 133, 6, Property Insurance 71,7 71,7 72,3 14,3 23, Group Health Insurance 1,44, 1 1,232,2 1,487,7 1,276, 5,4, Other Post-Employement Benefits 5,, 5,, Inventory Adjustments Payroll Taxes 42,6 469,8 488,9 418,7 1,78, Pension Costs 1,17, 1, 17, 1, 17, 1,44, 4,95, Maintenance to Properties Labor 58,8 68,6 71,4 61,2 26, Maintenance to Properties Materials 59,4 96,6 57,7 86,3 3, Capitalized Payroll Overhead (192,3) (224,4) (233,4) (199,9) (85,) Capitalized Administrative Overhead (13, 1) (12,3) (12,3) (12,3) (5,) TOTAL COMMERCIAL AD GEERAL $5, 156,7 $5,88, $5, 157, 1 $1,3,2 $25,432, TOT AL OPERA TIG EXPESES $12,75,65 $13,376,55 $12,767,95 $17,284,35 $55,54,5 OPERA TIG ICOME $8,414,85 $8,38,55 $7,987,45 $5,47,65 $3, 19,5 OTHER ICOME ITEREST $597, $613, $628, $662, $2,5, TAPPIG FEES 224,7 264,3 189,7 171,3 85, COTRIBUTED CAPITAL 482,2 526,6 54,7 35,5 1,9, TOTAL OTHER ICOME $1,33,9 $1,43,9 $1,358,4 $1, 183,8 $5,25, GROSS ICOME $9,718,75 $9,784,45 $9,345,85 $6,591,45 $35,44,5 DEBT EXPESE Bond Interest Expense $1,929, $2,1, $2,91, $2, 17, $8,2, Other Interest Expense 129,6 66,7 67,8 95,9 36, Bond Discount Amortization 1,484, 1,478, 1,468, 1,47, 5,9, Trustee Fees and Expenses 14,5 14, 1 28, 13,4 7, TOT AL DEBT EXPESE $3,557, 1 $3,568,8 $3,654,8 $3,749,3 $14,53, MAAGEMET FEES $3, $3, $3, $3, $1,2, OFFICERS COMPESATIO LEGAL FEES 42,5 42,5 42,5 42,5 17, EGIEERIG FEES 2,5 2,5 2,5 2,5 1, ACCOUTIG FEES 11,9 23,4 11, 7 13, 6, OTHER ADMIISTRATIVE EXPESES 2,49 2,49 2,49 2,53 1, DEPRECIATIO PROVISIO 2,295, 2,295, 2,295, 2,315, 9,2, Appendix Page 5

19 EDIG EDIG EDIG EDIG EDIG TOTAL EXPESES ICLUDIG DEPRECIATIO $6,211,49 $6,234,69 $6,38,99 $6,424,83 $25, 18, ET FROM WATER $2,822,96 $2,937,86 FROM WASTEWATER 684,3 611,9 TOT AL ET ICOME/(LOSS) $3,57,26 $3,549,76 $2,474,26 ($849,58) 562,6 i,16,2 $3,36,86 $166,62 $7,385,5 2,875, $1,26,5 ADD: PARTIAL BALACE I REVEUE FUD-ED OF PRIOR FISCAL YEAR BOD ITEREST EXPESE * BOD DISCOUT AMORTIZATIO EXPESE DEPRECIATIO OTHER POST EMPLOYMET BEEFITS $ 8,56, 5,9, 9,2, 5,, $28,66, LESS: RESTRICTED ITEREST ICOME TAPPIG FEES COTRIBUTED CAPITAL PEVEST PAYMETS DEBT SERVICE DEPOSITS CAPITAL SURCHARGE FUDIG less PEVEST P&I REQUIRED CAPITAL EXPEDITURE FUD DEPOSITS WATER REQUIRED CAPITAL EXPEDITURE FUD DEPOSITS WASTEWATER ADDITIOAL CAPITAL EXPEDITURE FUD DEPOSITS WATER SURPLUS AVAILABLE $2,445, 85, 1,9, 1,765, 27,981,788 34, 2,775,85 228,375 $37,98,13 $94,487 * Includes interest expense for subordinate debt Appendix Page 6

20 MAITEACE CAPITAL EXPEDITURES BUDGET FOR THE YEAR EDIG MARCH 31, 217 BUDGET ITEM# UMBER 1A-1 1A-2 1A-3 1A-4 1A-5 1A-6 1 B-1 1 B-2 1C-1 1C ITEM TAK REPAIR PE DOT EW DISTRIBUTIO MAIS & HYDRATS EW DISTRIBUTIO MAIS (REFUDABLES) MAI EXTESIO DEPOSITS REFUDED WASTEWATER TOTAL ITEMS 1A-1THROUGH1A-6 REEWAL OF SERVICES EW SERVICES ISTALL EW METERS PURCHASE METERS OFFICE EQUIPMET AD SUPPLIES TRASPORTATIO EQUIPMET DISTRIBUTIO TOOLS AD EQUIPMET PRODUCTIO AD SAFETY PUMP STATIO REPLACEMET EGIEERIG TOTAL ITEMS 1BTHROUGH9 TOTAL CAPITAL EXPEDITURES ESTIMATED COST $ 3, 355, 1,5, 25, 5, $2,455, $35, 1, 1, 5, 39,225 15, 8, 1, 23, 3, $3,299,225 $5,754,225 FUDIG FOR MAITEACE CAPITAL EXPEDITURES FOR THE YEAR EDIG MARCH 31, % OF GROSS REVEUES - WATER TRASFER FROM CAPITAL SURCHARGE ACCOUT ADDITIOAL CAPITAL FUDIG-WATER 3.5% OF GROSS REVEUES - WASTEWATER CAPITAL FUD ITEREST TAP DEPOSITS LARGE TAP DEPOSIT DEVELOPER AD PEDOT DEPOSITS $2,775,85 228,375 85, 25, 1,65, TOTAL FUDIG PROVIDED Appendix Page 7

21 SCHEuULE IV ~ I HISTORICAL COMPARISO OF OPERATIOAL DATA, REVEUES, AD EXPESES WITH B, DGET - ~ If PROJECTED BUDGET I ljdget Year Ending 3/31 /21 3/31/211 3/31 /212 3/31/213 3/31 /214 3/31 /215 3/31 /216 3/31/216 3/31/217 umber of Water Customers 119, ,952 12,96 12,186 12,284 12,238 12,442 12,7 12,74 umber of Wastewater Customers 4,699 4,7 4,628 4,77 4,693 4,685 8,832 4,77 8,832 Water Sold!Millions of Gallons] Potable - Residential/Commercial/Industrial/Municipal 7,873 8,44 7,696 7,617 7,367 7,146 7,312 7,233 7,326 Potable - Resale on-potable (Raw Water) 1,427 1,349 1,487 1,55 1 1,56 1,144 1,8 1,356 1,8 Total Water Sales 1,11 1,254 1,27 1,26 9,753 9,162 9,198 9,448 9,212 Operating Revenues, Water Residential $ 37,191,732 $ 36,681,947 $ 35,574,979 $ 37,871,2 $ 43,136,29 $ 42,315,841 $ 42,773,265 $ 43,18, $ 5,5, Commercial 9,166,819 9,238,818 8,859,588 9,424,122 1,784,233 1,662,711 1,875,561 1,77, 12,95, Industrial 1,318,539 1,395,759 1,185,81 931,812. 1,51,825 1,357,425 1,676,273 1,27, 1,73, Private Fire Protection 883,793 92,281 91,25 973,847 1,16,694 1,181,95 1,1 71,294 1,15, 1,4, Public Fire Protection 47,642 46,683 49,51 411, ,72 415, ,686 41, 415, Municipal 1,53,976 1,576,978 1,572,758 1,71,627 1,681,116 1,593,77 1,662, , 1,915, Raw Water Sales 765,18 728, , ,81 1,24,17 968,455 1,43,357 1,25, 3, Resale 2,118,39 2,258,92 2,222,16 2,337,362 2,559,593 2,572,924 2,412,31 2,44, 6,6, Miscellaneous Water Sales 241, ,475 18,76 191, ,52 134, ,759 22, 19, Miscellaneous Operating Revenue 1,445,299 1,877,91 3,565,867 7,159,371 8,411,751 6,712,237 5,94,38 6,795; 3,98, Total Operating Revenue, Water $ 55,69,44 $ 55,319,126 $ 55,32,944 $ 61,798,28 $ 71,1 7,741 $ 67,913,94 $ 68,162,898 $ 69,145, $ 79,17, Total Operating Revenue, Wastewater $ 1,976,221 $ 2,115,96 $ 2,367,15 $ 2,577,254 $ 2,983,59 $ 2,951,275 $ 3,945,92 $ 3,75, $ 6,525, Operating Expenses, Water Source of Supply $ 542,396 $ 555,991 $ 733,283 $ 634,848 $ 912,33 $ 846,272 $ 793,912 $ 875, $ 873,5 Treatment 6,642,638 6,562,459 6,783,23 6,883,626 7,243,179 7,439,2 6,83,57 7,25, 7,433,5 Distribution 9,471,699 9,692,585 1,1 77,255 12,148,376 12,589,1 7 12,434,22 13,347,716 12,66, 13,225, Engineering 1,73, , ,911 1,65,758 1,13, ,376 1,12,96 989, 1,85, Distribution Facilities 2,91,134 3,63,257 3,26,941 3,192,798 3,39,114 3,449,525 3,392,441 3,453, 3,85,5 Commercial & General * 19,528,583 21,135,691 23,22,87 22,971,289 23,5 1,244 23,544,24 25,421,169 25,46, 25,432, Total Operating Expenses, Water $ 4,16,349 $ 41,885,521 $45,11,49 $ 46,896,695 $ 48,667,68 $ 48,572,437 $ 5,888,714 $ 5,462, $ 51,854,5 Total Operating Expenses, Wastewater $ 1,729,43 $ 1,881,9 $ 2,85,86 $ 2,234,918 $ 2,518,544 $ 2,681,182 $ 3,227,51 $ 2,75, $ 3,65, Administrative Expenses 271, ,367 26,436 28, ,54 256, , , 25, Trustee Fees 69,439 6,216 85,793 47,548 59,139 47,671 66,971 6, 7, Management Fees ,12,5 1,, ,, 1,2, TOTAL EXPESES $ 43,8,565 $ 45,75, 113 $ 48,429,525 $ 5,399,178 $ 52,477,367 $ 52,557,537 $ 55,42,182 $ 54,482, $ 57,24,5 Operating Revenue Available for All Debt $ 13,965,6 $ 12,359,973 $ 9,24,569 $ 13,976,356 $ 21,676,883 $ 18,37,678 $ 16,688,636 $ 17,738, $ 28,67,5 Operating Revenue Available for Water Debt 13,718,269 12,125,22 8,959,225 13,634,2 21,211,918 18,37,585 15,969,767 17,368, 25,795,5 Operating Revenue Available for Wastewater Debt 246, , , , ,965 27,93 718,869 37, 2,875, * Includes Payroll Taxes,/ Appendix Page 8

22 SCli ULE V ISURACE Property Carrier: Policy umber Term Premium Policy Limit Great American Insurance Group MAC April 1, 215 to April 1, 216 $223,666 $4,, per loss Executive Protection Carrier: Policy umber: Term Premium Policy Limit Chubb Group of Insurance Co Sept. 22, 215 to Sept. 22, 216 $6,324. $1,, General Liability Carrier: Policy umber Term Premium Policy Limit H.A.R.I.E. HGL April 1, 215 to April 1, 216 $219, (Includes Terrorism) $2,, Public Officials and Employees Liability Carrier: ational Union Fire Insurance Co. Policy umber Term 11/6/15to 11/6/16 Premium $3,736 Policy Limit $1,, Worker's Compensation Carrier Policy umber Term Premium Policy Limit H.A.R.I.E. HWC April 1, 215 to April 1, 216 $391,439 $1,, Surety Bonds Carrier: Policy umber Term Premium Policy Limit Selective Ins. Co. of America Various varies for each governmental unit Business Automobile Carrier Policy umber Tenn Premium Policy Limit H.A.R.I.E. HCA April 1, 215 to April 1, 216 $63,273 $1,, Commercial Umbrella Carrier: Policy umber Term Premium Policy Limit ational Casualty Company XC42 April l,215toapril 1,216 $16,47 $3,, Privacy Liability & etwork Risk Carrier Allied World Assurance Company Policy umber Tenn July 1, 215 to July I, 216 Premium $4, 166 Policy Limit $1,, Pollution Site Carrier Policy umber Term Premium Policy Limit Lloyds PG I ARKO October 1, 213 to October 1, 216 $49,29 $1,, Crime Carrier Policy umber Term Premium Policy Limit Chubb September 22, 215 to September 22, 216 $4,375 $1,, Appendix Page 9

23 RA TE SCHEDULE EFFECTIVE O ALL BILLIGS O OR AFTER FEBRUARY 11, 213 Revised 1117/212 AD All Except As Otherwise McKeesport & Port Vue Size of Indicated Areas Meter Quarterly Allowance Monthly Allowance [In.] Minimum Provided* Minimum Provided* % $ , $ I 2, % , , , , 1 Yi , , , , , , , , 6 1, , , 8 1,7.51 3, 1, , 1 2, , 1, , 12 3, I 3, 2, , *Allowance provided for Minimum [Gallons] CHARGES FOR WATER COSUMPTIO I EXCESS OF MIIMUM ALLOWACES** All Areas Except As McKeesport & Port Vue * * Charges are per 1, gallons Charge for all use in excess of quarterly or monthly minimum allowance for quantities up to: 24, gallons per quarter 375, gallons per month Charge for all use in excess of: 24, gallons per quarter 375, gallons per month Indicated $5.99 $3.75 Area $8.77 $4.85 SCHEDULE OF AUAL CHARGES PER COECTIO FOR PRIVATE FIRE PROTECTIO SERVICES Connection Type or Size All Areas Fire Hydrant $ " or Smaller " 1, " 3,189. 1" 5, " 7,974. CAPITAL IMPROVEMET SURCHARGE Quarterly surcharge to every water customer in addition to the quarterly minimum and excess consumption charges... $1. AUAL CHARGE PER HYDRAT FOR PUBLIC FIRE SERVICE - $5. TAP I FEES FOR WATER SERVICE Connection Size Fee %" $ 2,7. l" 2,8. 1" Doubled to %" 3,5. 2" 5,. 4" 1,. 6" 15,. 8" and larger 2,. Appendix Page 1

24 RA TE SCHEDULE EFFECTIVE O ALL BILLIGS O OR AFTER APRIL 1, 216 OF AD All Areas Size of Meter Quarterly Quarterly Monthly \ Monthly [In.] Minimum Allowance* Minimum I Allowance* % $ , $ , % , , , , I Yi , , I 3, , , , , , 6 1, , , 8 2, , , 1 3, , 1, , 12 4, , 1, , *Allowance provided for Minimum [Gallons] CHARGES FOR WATER COSUMPTIO I EXCESS OF MIIMUM ALLOWACES** ** Charges are per 1, gallons Charge for all use in excess of quarterly or monthly minimum allowance for quantities up to: 24, gallons per quarter Charge for all use in excess of: 24, gallons per quarter All Areas $7.49 $4.69 SCHEDULE OF AUAL CHARGES PER COECTIO FOR PRIVATE FIRE PROTECTIO SERVICES Connection Type or Size All Areas Fire Hydrant $ " or Smaller " 2, " 3, ". 6, " 9,967.5 CAPITAL IMPROVEMET SURCHARGE Quarterly surcharge to every water customer in addition to the quarterly minimum and excess consumption charges... $1. AUAL CHARGE PER HYDRAT FOR PUBLIC FIRE SERVICE - $5. TAP I FEES FOR WATER SERVICE Connection Size Fee %" $ 2,7. 1" 2,8. 1" Doubled to%" 3,5. 2" 5,. 4" 1,. 6" 15,. 8" and larger 2,. Appendix Page 11

25 Size of RATE SCHEDULE EFFECTIVE O ALL BILLIGS O OR AFTER JAUARY I, 216 Revised 1117/212 SCHEDULE OF MIIMUM CHARGES FOR SEWAGE SERVICE Avonmore Ligonier White Oak I-7 Smithton Quarterly Charges Meter Quarterly Allowance Allowance Quarterly Allowance Quarterly I Allowance 11n.l Minimum Provided* Minimum Collection Total Provided* Minimum Provided* Minimum Provided* % $ , $ $ 7.19 $ , $ 6.9 6, $ , , 6.9 6, , , 6.9 6, I Yi , , 6.9 6, , I , 6.9 6, , , , 6.9 6, , , 6.9 6, I.. *Allowance provided for Mm1mum [Gallons] CHARGES FOR SEWAGE USE I EXCESS OF MIIMUM ALLOWACES** ** Charges are per 1, gallons Avonmore Ligonier White Oak I-7 Smithton Charge for use in excess of quarterly Minimum $ 9.85 $ 11.8 Charge for the first 4, gallons of use in excess of quarterly Minimum $ 5.75 Charge for all use in excess of 1, gallons per quarter 5.4 Charge for all use in excess of quarterly minimum allowance for quantities 1 p to 24, gallons per quarter $ 6.1 Charge for all use in excess of 24, gallons per quarter 3.8 Quarterly charge for unmetered well supplied customers in White Oak (Quarterly Flat Rate) $ CITY OF JEAETTE Residential Commercial Industrial Church Schools Residential out of area Unteberger MH Park $142.5 Flat Rate 3 Months $142.5 First 6, Gallons $8. over 6, Gallons $142.5 First 6, Gallons $8. over 6, Gallons $6. Flat Rate 3 Months $8. over 6, Gallons $3.75 Per Student Per Quarter $142.5 Flat Rate 3 Months $ Per Mobile Home Per Quarter Appendix Page 12

26 EFFECTIVE O OR AFTER APRIL 1, 216 Security Deposits Residential Accounts $ 1. on-residential Accounts $ 15. Hydrant Meters Security Deposit $ 1,2. Down Payment $ 4. Monthly Minimum $ 125. Cost per Thousand Gallons $ 7.49 Late Payment Fee 5% o-lien Letters $ 4. Sewer Dye Test $ 17. Certified Shut-Off otices $ 1. Credit/Debit Card Convenience Fee $ 3.75 Returned Check Fee $ 35. Water Turn-On Fees Same Day Before 3:3PM $ 5. Same Day After 3:3PM $ 15. ext Day $ 2. Turn Off for Sewer Authorities Turn-Off $ 5. Turn-On $ 5. Hydrant Flow Tests $ 3. Deduct Meter Installation/Replacement $ 3. Meter Tests $ 5. Paper Copy of Rules and Regulations $ 25. Copy Fee - Right-to-Know - per page $.25 ew Fire hydrant Installation Public $ 1,2. Private $ 2,4. Sale of Contract Bid Specifications $ 2. Frozen Meter Replacement 5/8" M 156 At cost $ currently 3/4" M157 At cost $ currently 1" M151 At cost $ currently 2" M1527 At cost $ currently 2" M152 CP At cost $ currently Meter Yokes 3/4" E 1562 At cost $ currently 1" E1512 At cost $ currently Meter Pit Lids 2" E1518 At cost $ currently Meter Re-Setters 5/8" E1561 At cost $ 43.7 currently 1" E1511 At cost $ 125. currently Meter Flanges 2" M1522 At cost $ 12. currently Appendix Page 13

27 EXHIBIT I Comparison of Water Revenues and Water Expenses $8,, I $75,, I $7,, j' $65,,! $6,, ~ $55,, I I I! $5,, ~ $45,, $4,, $35,, $3,, $25,, $2,, $15,, $1,, $5,, $ I I '==' I l'-- (() m (")... Year Ending March 31st..q-..- I.!)... CD... o Operating Revenue 28 Revenue exludes $5,729,384 net proceeds from sale of property. 29 Revenue excludes $6,98,228 net proceeds from sale of gas rights. Operating Expenses Appendix Page 14

28 EXHIBIT II Record of Customers 13 -r-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ;---~---,~ ~-,---'-~..._-,-...._~ ~..._-,-,...._~,---'-~-L--.---'~~~~_._~.&---r-.,~ t-- co CJ)..- ('I) "<:t" I.!) co Year Ending March 31st Wastewater Customers o Water Customers --- Appendix Page 15

29 ~ EXHIBIT Ill Record of Quantity of Water Sold 16 "' c - ns (!)... "' c -- -m ~ - -,, -._ II - -I l'- O> ~ (") Year Ending March 31st ~ LO c.o ~ - - o Raw Water Sales Potable Sales to Resale Customers D Potable Sales to Authority Customers Append ix Page 16

30 EXHIBIT IV Operating Revenue Details $9,, $8,, $7,, $6,, $5,, $4,, $3,, $2,, $1,, $ I'- co O> "<'""" (") '<;f" Year Ending March 31st I!) c.o Raw Water DBulk Water Sales o Miscellaneous o Wastewater Direct Water Sales Fire Protection Revenues exclude $5, 729,384 (28) net proceeds from sale of property and $6,98,228 (29 only) for sale of gas rights. Potable water rate increases 1/1 /1993, 1/1 /1998, 4/1 /22, 6/1 /24, 4/1 /26, 4/1 /29, 2/11 /213 & 4/1 /216 Append ix Page 17