Suffolk County Water Authority

--Budgets--

For The Fiscal Year Ending

May 31, 2007

TAB

1

2

3

TABLE OF CONTENTS

SCHEDULE

Highlights of Budget Data

Revenue Budget

Revenue Budget Chart

Operating and Maintenance Budget

Operating and Maintenance Budget Chart

Construction Budget

Construction Budget Chart

Supplemental Information

5 Construction Budget Source of Funds

6 Operating Cash Flow

7 Projected Earnings

8 Customers Served by District

9 Debt Service Requirements & Coverage

10 Supplemental Capital Budget Information

SCHEDULE 1

Authority Budgets

Operating Revenues and Other Income

SUFFOLK COUNTY WATER AUTHORITY HIGHLIGHTS OF BUDGET DATA

Operation and Maintenance Expense

Operating Income Available

Construction Budget*

Debt-Service

Debt Coverage Senior Debt All Debt

Active Services as of fiscal year ending May 3 1 ,

Budget Year Ending

2007

Projection Year Ending

2006

*Includes $ 4 Million for 2007, and $ 3 million for 2006, of reimbursable Developer Contracts

Pro-iection May 3 1 , 2006 Revenues -Actual for 6 months and estimated for 6 months Expenses -Actual for 6 months and estimated for 6 months Construction -Figures are based on the latest available information Active Services -Figures are based on the latest available information

Debt service is net of capitalized interest.

SCHEDLJLE 2

SUFFOLK COUNTY WATER AUTHORITY FWVENUE BUDGET

FOR FISCAL YEAR ENDED MAY 31,2007

Water Revenues

Wholesale Water

Hydrants / Firelines

Antennae Leases

Miscellaneous

Total Operating Revenues

Interest Income

Construction Revenue

Total Revenues

Suffolk County Water Authority

Minimum Revenue17%

Wholesale Water1%

Hydrants & Firelines5%

Construction Fees8%

Management Services1%Antennae Leases

4%Miscellaneous

2%

Interest3%

Consumption Revenue59%

Note: Management Services are Stony Brook, Fair Harbor, Riverside, Brentwood and Pine BarrensWholesale Water Districts are Greenport, St. James, Stonybrook, Smithtown

Revenue Budget for y/e May 31, 2007 : $ 144,749,000

2A

Revenue Components:

SUFFOLK COUNTY WATER AUTHORITY OPERATING AND MAINTENANCE BUDGET

FOR FISCAL YEAR ENDING MAY 31,2007

Construction Maintenance

Customer Service .....................................................................................................................................................

Engineering .....................................................................................................................................................

Facilities Management

Finance *

Human Resources .....................................................................................................................................................

Administrative Division*" .....................................................................................................................................................

Information Technolom

Laboratorv

Meter Shox,

Office of the CEO .....................................................................................................................................................

Policy & Planning

Production Control

Public Relations

Safety .....................................................................................................................................................

Material Distribution .....................................................................................................................................................

Risk Management

Telecommunications

Total Operating And Maintenance Budget

*Includes cost of Social Security, Insurances. Consultants, Billing and Collecting ** Includes cost of Health, Dental, Optical, Retirement, and Training.

Suffolk County Water Authority

Operations12%

Benefits19%

Wages36%

Power22%Maintenance

11%

Operating & Maintenance Expense Budget for y/e May 31, 2007: $84,769,0003A

Operating & Maintenance Components:

S A CON YEAR ENDING

Schedule 4

BUDGET I'iE MAY 31,2007

G 45 EXTENSION OF WATER MAINS FOR NEW CUSTOMERS $3,ooo,ooo

G 1.1 REPLACEMENT OF WATER MAINS

G I I BLOWOFFS & VAULT CONVERSIONS $400,000

G 16 NEW WELLS $6,400,000

G 17 REPLACEMENT OF EXISTING WELLS $1,430,000 "" ~ - " *

G 12 TANK MAINTENANCE AND CONSTRUCTION $2,375,000

G 48 MISCELLANEOUS TREATMENT FACILITIES $4,540,000

c 3 INSTRUMENTATION NEW OR REPLACEMENT $750,000 *

G 7 NEW MISC PUMP STATION INFRASTRUCTURE $1,325,000

G 2 REPLACEMENT OF PUMP STATION INFRASTRUCTURE

G 5 SUPERVISORY CONTROL AND DATA ACQUISITION SYSTEM $150,000

G I S SMALL METER CHANGE OUT $1,245,000

G 19 LABORATORY EQUIPMENT $275,000

G 24 METERS (NEW & MAINTENANCE) $2,167,000

G 2s SERVICES $6,643,000

G 26 HYDRANTS

G 27 TRANSPORTATION $1,ooo,ooo

Page I of 2

A GONST YEAR ENDING BUDGET YIE

RlAY 31,2007

c zs FIELD EQUIPMENT

G 29 OFFICE FURNITURE & EQUIPMENT $27,400

G 30 INFOkMATION TECHNOL $249,500 -A,-,

c 31 DEPARTMENTAL EQUIPMENT $39,600

G I ACQUISITION OF LAND FOR WELL AND TANK SITES - * * - - a - - - * - - - - - - - -

c so LANDSC $50,000 ," e- m-,.-,*

G 51 GENERAL SERVICE SITE WORK $521,000

G 57 SAP $2,500,000 - - -- -- *-- -- -

G is CONSTRUCTION CONTRACTS $4,000,000

c 59 CORAM RENOVATIONS

e 60 CM RENOVATIONS - NEW SERVICE $75,000

G 61 SAFETY EQUIPMENT $25,000

c 58 FIELD COMMUNICATIONS $50,000

Grand Total : 53,552,000

Page 2 of 2

Suffolk County Water Authority

Treatment Facilities8%

Site Work1%

Transportation2%

Meters , Services, Hydrants22%

Equipment3%

Administrative8%

Water Mains31%

New & Replacement Wells15%

Pump Equipment & Infrastructure

10%

Construction Budget for y/e May 31, 2007: $ 53,552,000 4A

Construction Components:

SCHEDIJLE 5

SUFFOLK COUNTY WATER AUTHORITY CONSTRUCTION BUDGET - SOURCE OF FUNDS

FOR FISCAL YEAR ENDING MAY 31,2007

FUNDS AVAILABLE

Construction Funds, May 3 1,2006 (Estimated) $55,225,000

General Fund, May 3 1, 2006 (Estimated) 64,180,000

Estimated balance from operations, May 3 1, 2006 after deduction for Debt-Service requirements (See Cash Flow Budget - Schedule 6) 27,19 1.000 $146,596,000

Less: Construction Developer Contracts

CONSTRUCTION EXPENDITURES:

PROJECTED FUNDS AVAILABLE FOR CONSTRUCTION AT MAY 31,2007

SUFFOLK COUNTY WATER AUTHORITY OPERATING - CASH FLOW

FOR FISCAL YEAR ENDING MAY 31,

2007 - A. Operating Revenue $129,696,000

Investment Earnings 4,194,000 Construction Revenue 10,859,000 $1 44,749,000

& B. Operating and Maintenance Expense

C. Net Operating Income Available for Debt Service

& D. Debt

a) Interest on Long-Term Debt 18,802,000 b) Bond Principal 10,587,000 c) Interest on Notes 3,400,000

E. Operating Funds Available for Construction

SCHEDULE 6

$145,396,000

Operating revenues and expenses for fiscal year ending May 3 1,2006 include actual figures for 6 months and estimated figures for 6 months.

SCHEDULE 7

SUFFOLK COUNTY WATER AUTHORITY PROJECTED EARNINGS

FOR FISCAL YEAR ENDING MAY 31,

2007 - 2006

REVENUES:

Operating Construction Interest

Total Revenues

OPERATING & MAINTENANCE EXPENSE: 84,769,000 83,482,000

Net earnings before Interest and Depreciation (Available for Debt-Service)

Operating Ratio

OTHER DEDUCTIONS:

Interest on Long-Term Debt Interest on Notes Depreciation and Amortization

NET PROJECTED EARNINGS

Operating revenues and expenses for fiscal year eliding May 3 1,2006 include actual figures for 6 months and estimated figures for 6 months.

SCHEDULE 8

SUFFOLK COUNTY WATER AUTHORITY

SUFFOLK COUNTY W.4TER AUTHORlTY CUSTOMERS (at 05/3 112005)

Projected New Customers June 1,2005 through May 3 1.2006

PROJECTED CUSTOMERS (at 513 1106)

Customers Served by Operating Agreements

Stony Brook Water District

Brentwood Water District

Fair Harbor Water District

Riverside Water District

Customers Served by Wholesale Water

Sm~thtown Water Distr~ct

St James Water D~str~ct

Village of Greenport

Total Water Distr~ct Customers

TOTAL SUFFOLK COUNTY WATER AUTHORITY CUSTOMERS (at 513 1/07)

New Projected Growth for 2007

TOTAL SUFFOLK COUNTY WATER AUTHORITY CUSTOMERS (at 513 1/07)

CUSTOMERS

359.236

Note: Estimated population served b> the Suffolk Count) Water Authorit>.

1.156.965 (3.0 persons per household X 385,655)

SCHEDULE 9

SUFFOLK COUNTY WATER AUTHORITY DEBT SERVICE REQUIREMENTS AND COVERAGE

FOR FISCAL YEARS ENDING MAY 31,

Budget Projected 2007 - 2006

Revenue $144,749,000 $145,396,000

Operating & Maintenance 84,769,000 83,482,000

Balance for Debt Service $59.980.000 $61.914.000

Debt Service - Total (Primary and Subordinate) $32,789,000 $27.472.000

Debt Service Coverage Primary All Debt

Actual 2005

$130,805,185

75,933,375

$54.871.810

$35.113.000

2.66 1 S 6

Figures for fiscal year 2005 are actual. Figures for fiscal year 2006 are 6 months actual and 6 months estimated. Debt service is net of capitalized interest.

EXTENSION OF WATER MAINS FOR NEW CUSTOMERS 3,000,000

l 4 REPLACEMENT OF WATER MAINS I REPLACEMENT OF WATER MAIN 4,700,000

REPLACEMENT OF ASBESTOS WATER MAIN

3 " ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ SYSTEM IMPROVEMENTS I DISTRIBUTION SYSTEM IMPROVEMENTS 4,800,000

11

BLOWOFFS & VAULT CONVERSIONS 400,000

l 6 NEW WELLS I WEST PROSPECT WELL #3 200,000

MEADE DR. WELL 84

EAST FORKS RD WELL if6

CHESTNUT ST. WELL #3 200,000

GUS GERRERA PUMP STATION & 2 WELLS 350,000

Thursdny, October 19,2006 Page I of 9

Schedule 10

BI DGET 1 IE MAY 31,

enn-

ACCABONAC RD 200,000

BOYLE RD. NORTH WELL #2

PECONIC ST. LAKELAND- WELL fi2

MOFFlT BLVD. WELL #3

HALLOCKVILLE PUMP STATION

TEST BORINGS & MONITORING WELLS

RUTH BLVD WELL #3

BAY DRIVE PUMP STATION 180,000

OAK AVE FIELD FLANDERS, LAND, WELL, ETC. 325,000

OLD DOCK RD. PUMP STATION

BLANK LANE PUMP STA. WELLS # 1, #2, #3

SEATUCK AVE. PUMP STATION

JENNINGS RD WELL #3

EVERGREEN DRIVE PUMP STATION 225,000

BELLE TERRE RD WELL 83 200,000

SEATUCK AVE. NEW WELL ff2

PROSPECTIVE NEW PROJECTS

Tltursdqy, October 19, 2006 Page2of 9

LIDGET Y /E MAY 3 1,

l7 REPLACEMENT OF EXISTING WELLS I PROSPECTIVE NEW PROJECTS 600,000

ALBlN AVE.- WELL #10A

ASTOR AVE REPL WELL #3A 150,000

ISLANDS END- REPL WELLS # 6A, 7A & 8A

COLLEGE RD WELL # I A 220,000

AUGUST RD. - REPLACEMENT WELL #4A 220,000

G 12

F.I. PINES- NEW HYDRO TANK AT HARBOR WALK 100,000

CLEANING & PAINTING ELEVATED STORAGE TANKS

EAST HAMPTON DRIVE WEST - NEW HYDRO TANK

RESERVOIR AVE.- REPLACE DOME ROOF

" " MISCELLANEOUS TREATMENT FA 8

MARGIN DRIVE- IRON REMOVAL PLANT 800,000

LAWRENCE RD. - GAC SYSTEM 35,000

GUN CLUB RD 2 GAC SYSTEMS AND BUILDING

Thurshv, October 19,2006 Page3 of 9

l DGET 'i iE Z1AY 31,

- --

PECONIC AVE MEDFORD 2 GAC SYSTEMS AND BUILDING

ASTOR AVE IRON REMOVAL SYSTEM 400,000

MAYFAIR DR GAC SYSTEM

G 3

AUTO. CHLORINATION ANALYZING & CONTROL EQUIPMENT 500,000

PH MONITORING & CONTROL VARIOUS SITES

INSTRUMENTATION- NEW OR REPLACEMENT

NEW MISC PUMP STATION INFRASTRUCTURE I SECURITY SYSTEM / UPGRADES 250,000

CIRCLE DRIVE BOOSTER

BANANA ST. BOOSTER

WASHINGTON ST. BOOSTER

AUTOMATIC BLOWOFFS AT VARIOUS SITES

SITE WORK AT VARIOUS LOCATIONS

OAKVIEW HWY BOOSTER 100,000

Tltursd~v, October 19, 2006 Page 4 of 9

Schedule 10

BIl DGET YIE MAk 31,

ennr

RELOCATION OF GENERATOR AT BLUE POINT RD 75,000

DIESEL FUEL STORAGE UPGRADES

REPLACEMENT OF PUMP STATION INFRASTRUCTURE

UPGRADE OBSOLETE ELECT. SYSTEM 250,000

UPGRADE & REP. OF WELL HEAD ENCL, DRAIN PITS, BLFF BASINS

SAWYER AVE.- REPLACEMENT GENERATOR

REP. OF WELL SCREENS PUMPS ETC

G 5

SCADA UPGRADES 50,000

SCADA SERVER REPLACEMENT 100,000

'* SMALL METER CHANGE OUT

SMALL METER CHANGE OUT 1,245,000

l 9 LABORATORY EQUIPMENT I LABORATORY EQUIPMENT 275,000

Thursdq, October 19,2006 Page 5 of 9

Schedule 10

GET ' t i E XlA\ 31,

G 24

METERS 2,167,000

25 SERVICES I SERVICES 6,643,000

G 26

HYDRANTS 1,325,000

*' TRANSPORTATION

TRANSPORTATION 1,000,000

G 28

FIELD EQUIPMENT 212,500

G 29

OFFICE FURNITURE 27,400

30 INFORMATION TECHNOLOGY EQUIPMENT

Thursflqy, October 19,2006 Page 6 of 9

A CON U YEAR ENDING MAY 31,2

INFORMATION TECHNOLOGY EQUIPMENT 249,500

G 31

DEPARTMENTAL EQUIPMENT 39,600

" ' ACQUISZTIION OF LAND FOR WELL AND TANK SITES

ACQUISITION. OF LAND FOR WELL AND TANK SITES 250,000

" LANDSCAPING I LANDSCAPING PROJECTS 50,000

G S SITE RENOVATIONS 52 1,000

" '' RIVERSIDE WATER DISTRICT

RIVERSIDE WATER DISTRICT 27,000

" " AMR PILOT PROJECT

AMR PILOT PROJECT 200,000

Thursdn?;, October 19,2006 Page 7of 9

Schedule 10

BlJDGET UIE MAY 31,

57

SAP 2,500,000

'"ONSTRUCTION CONTRACTS I CONSTRUCTION CONTRACTS 4,000,000

" CORAM RENOVATIONS I CORAM RELOCATION 1,000,000

60 CM RENOVATIONS - NEW SERVICE I RENOVATION CM BUILDING -NEW SERVICE 75,000

6 1

SAFETY EQUIPMENT 25,000

" FIELD COMMUNICATIONS I FIELD COMMUNICATIONS IMPROVEMENTS 50,000

Thurscl~y, October 19,2006 Page 8 of 9

Grand Total : 53,552,000

Tlzursdny, October 19,2006 Page 9 of 9