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6.11.11. - Page 26 of 47 <br />Budget <br />Table 3: 10 -Year SVCW Funding Requirements <br />SVCW Long Range Financial Plan <br />SVCW Operating Expenses $11,245,294 $11,679,163 $12,117,333 $12,597,563 $12,580,921 $12,479,916 $12,854,541 $13,239,159 $13,633,974 $14,039,189 $14,455,010 <br />SVCW Debt Service <br />Existing Bonds <br />Existing SRF Loans <br />New Bonds (revised)' <br />New SRF Loans (revised)' <br />New WIFIA Loan (revised )2 <br />Subtotal <br />SVCW Non -Operating <br />Revenue Funded Capital <br />New Cash Reserves <br />Subtotal <br />SVCW Funding <br />9,821,781 9,683,971 9,427,893 9,420,607 9,423,018 9,416,936 9,414,793 9,411,079 9,410,286 9,409,098 9,404,820 <br />1,315,327 1,315,327 1,315,327 1,315,327 1,315,327 1,650,460 1,650,460 1,650,460 1,650,460 1,650,460 1,650,460 <br />- - - - 353,395 353,395 353,395 1,028,892 1,028,892 1,028,892 1,028,892 <br />2,803,559 2,803,559 2,803,559 2,803,559 2,803,559 2,803,559 2,803,559 <br />11, 15/, 1U25 1U,777,L7/ lU,/43,LLV lU,/.57,733 15,2577,[77 14,LL4,37V 14,LLL,LU/ 14,2575,tri 1 L1, b73, 17/ Ll,07L,VV7 Ll, b4/,/51 <br />721,507 874,260 728,550 728,550 728,550 728,550 728,550 728,550 728,550 728,550 728,550 <br />1,199,452 1,359,960 1,457,100 1,699,950 1,942,800 2,185,650 2,428,500 2,671,350 2,914,200 3,157,050 3,399,900 <br />23,581,854 24,038,420 24,317,652 25,033,446 28,419,020 28,889,916 29,505,248 30,804,500 38,201,371 38,848,248 39,502,641 <br />Source: SVCW Long Range Financial Plan, January 2019 with subsequently revised debt service projections. <br />1 Based on revised debt service estimates dated March 5, 2019, which include a deferral of debt service from projections in the Long Range Financial Plan, January 2019 update. <br />2 Based on revised WIFIA debt service estimates, which assume more WIFIA funding and less bond funding, and 3 -year deferral of WIFIA debt repayment. <br />1.6.2 Replacement of Aging City Sewer System Infrastructure <br />Many of the City's sewer collection system pipelines are over 50 years old and are in need of rehabilitation <br />and replacement as they reach the end of their useful lives. Some pipelines are undersized and need to <br />be replaced with larger pipelines to prevent bottlenecks and meet capacity needs during peak, wet <br />weather events. The financial projections include a base level of funding for the City's sewer capital <br />improvements at $7.5 million per year for the next 3 years, escalating to $8.5 million most years <br />thereafter. This level of capital funding will enable the City to continue addressing high-priority pipeline <br />replacements, pump station upgrades, and other capital improvements needed to mitigate current <br />deficiencies and support the continued provision of safe and reliable service. <br />In addition, with gradual annual rate increases, some limited temporary additional funding will be <br />provided some years while rates are phasing in toward meeting future debt service, which increases <br />periodically in steps as new debt comes online. Some of this incremental funding can be used to help <br />fund high-priority capital needs, but the City also anticipates applying the incremental funding toward the <br />costs of new utility billing system and payment toward reducing the sewer enterprise's share of pension <br />liabilities. <br />®BARTLE WELLS ASSOCIATES 9 <br />Sewer Financial Plan & Rate Update <br />705 <br />