operating and capital improvements budget · 2020-01-08 · employee recognition the 2016 office...

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FY2017

Georgetown County Water and

Sewer District FY2017‐FY2021

Capital Improvements Plan

Operating and Capital Improvements Budget

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Contents Contents.......................................................................................................................................................................................2

Introduction...............................................................................................................................................................................5

FY2017–OrganizationalStructure..................................................................................................................................6

MissionStatement...................................................................................................................................................................7

GeorgetownCountyWaterandSewerDistrict–ataglance................................................................................8

Awards.......................................................................................................................................................................................10

EmployeeRecognition.........................................................................................................................................................11

EmployeeRecognition.........................................................................................................................................................12

ALookBackatFY2016–SignificantAccomplishments.......................................................................................13

FY2017–PersonnelRequestSummary.......................................................................................................................14

FY2017–DepartmentalRequests..................................................................................................................................15

ExecutiveManagement.............................................................................................................................................15

GeneralServices...........................................................................................................................................................15

CustomerServices.......................................................................................................................................................15

InformationTechnology...........................................................................................................................................15

Accounting......................................................................................................................................................................15

Billing................................................................................................................................................................................16

Engineering....................................................................................................................................................................16

Construction...................................................................................................................................................................16

WaterOperations.........................................................................................................................................................16

WastewaterOperations............................................................................................................................................16

Maintenance...................................................................................................................................................................17

HumanResources–Responsibilities,GoalsandObjectives................................................................................18

Finance/AdministrativeServices–Responsibilities,Goals,andObjectives.................................................19

Engineering–Responsibilities,Goals,andObjectives...........................................................................................21

OperationsDivision–Responsibilities,Goals,andObjectives...........................................................................23

TheGeorgetownCountyWaterandSewerDistrict................................................................................................26

TheHistoryofService1970stoPresent......................................................................................................................27

CurrentEconomicConditions..........................................................................................................................................29

HistoricalCustomerGrowth–ByServiceArea........................................................................................................30

TheDistrict’s10LargestCustomers..............................................................................................................................31

BudgetDevelopment............................................................................................................................................................32

3

DeterminingRates................................................................................................................................................................33

ProposedFY2017Rates.....................................................................................................................................................34

ProposedFY2017Rates.....................................................................................................................................................35

HistoryofLowRates............................................................................................................................................................36

CurrentRegionalRateComparison...............................................................................................................................37

FY2017FinancialProjections...........................................................................................................................................38

BudgetOverview...................................................................................................................................................................39

RevenueProjections.............................................................................................................................................................40

WaterFund.....................................................................................................................................................................40

WastewaterFund.........................................................................................................................................................41

GeneralFund:BillingandCollection...................................................................................................................42

GeneralFund:GeneralAdministration...............................................................................................................42

GeneralFund:Engineering......................................................................................................................................43

GeneralFund:RestrictedIncome..........................................................................................................................43

ExpenditureProjections.....................................................................................................................................................45

PersonnelServices......................................................................................................................................................45

ContractualServices...................................................................................................................................................46

SuppliesandMaterials...............................................................................................................................................48

MaintenanceandRepairs.........................................................................................................................................49

BusinessandTravel....................................................................................................................................................50

CapitalOutlay................................................................................................................................................................51

MiscellaneousExpense..............................................................................................................................................52

DebtService...................................................................................................................................................................52

RevenueandExpenditureSummaries.........................................................................................................................53

SummaryofProjectedRevenues:FY2017ComparedtoFY2016....................................................................54

FY2017ProjectedRevenues…continued....................................................................................................................55

SummaryofProjectedExpenditures:FY2017ComparedtoFY2016............................................................56

FY2017Expenditures…continued.................................................................................................................................57

FY2017Expenditures…continued.................................................................................................................................58

DebtServiceSchedules.......................................................................................................................................................59

Long‐TermDebt.....................................................................................................................................................................60

CapitalImprovementsBudget.........................................................................................................................................61

FY2017CapitalProjects–BudgetRequests...............................................................................................................62

WaterMainRehabProjects.....................................................................................................................................62

MurrellsInletTrunkLine.........................................................................................................................................62

SewerMainRehabProjects.....................................................................................................................................62

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FireHydrantReplacement.......................................................................................................................................62

McDonaldSchoolPumpStationForceMainUpgrade..................................................................................62

PowellAndVillageRoadWaterLineImprovements....................................................................................62

PawleysIslandWastewaterTreatmentPlant..................................................................................................63

SampitTankAltitudeValve.....................................................................................................................................63

ASRandWellRehabilitation...................................................................................................................................63

PawleysIslandWWTPReceivingStation..........................................................................................................63

ClarifierDriveandGritReplacement..................................................................................................................64

AirLineReplacementandRepair–PawleysIslandWWTP.....................................................................64

WaccamawNeckWaterTreatmentPlantUpgrades.....................................................................................64

TankMixers....................................................................................................................................................................64

PumpStationRehabilitationandPanelReplacement..................................................................................64

PawleysIsland/MurrellsInletWastewaterTreatmentPlant‐MaintenanceProjects.................65

ContinuingAssetMaintenancePrograms..........................................................................................................65

FY2017FundingSources–WaterSystem..................................................................................................................66

FY2017FundingSources–WastewaterSystem......................................................................................................66

5‐YearCapitalImprovementsProgram.......................................................................................................................67

CIPFY2017‐FY2021:PlanSummarybySystemComponent............................................................................68

CIPFY2017‐FY2021:SourceofFundsSummary..................................................................................................68

CIPFY2017‐FY2021:CapitalEquipmentPurchases...........................................................................................69

CIPFY2017‐FY2021:WaterDistributionCapitalProjects...............................................................................70

CIPFY2017‐FY2021:WaterTreatmentandStorageCapitalProjects.........................................................71

CIPFY2017–FY2021:WastewaterCollectionCapitalProjects.......................................................................72

CIPFY2017–FY2021:WastewaterTreatmentCapitalProjects......................................................................73

CIPFY2017–FY2021:CapitalRepairandReplacementFund.........................................................................74

CIPFY2017–FY2021:Account908ContingencyFund.......................................................................................75

CIPFY2017–FY2021:WaterImpactFees................................................................................................................76

CIPFY2017–FY2021:SewerImpactFees.................................................................................................................77

5

Introduction

6

FY2017 – Organizational Structure

7

Mission Statement

VISION:ThevisionoftheDistrictistoprotectthepublichealthbyprovidingsafewaterandsewerservices inacosteffectivemanner.

MISSION: Themissionof theDistrict is toacquire, construct,maintain, and operate a water and sewer system for themaximum practical benefit of the citizens of GeorgetownCounty.

VALUES: The District values integrity, diversity, teamwork,creativity, leadership, and customer service both in ouremployeesandourbusinesspractices.

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Georgetown County Water and Sewer District – at a glance

22,612CustomersasofJanuary1,2016

78Employees

28Wells

798MilesofWaterMain

6,917WaterValves

2,127FireHydrants

541PostHydrants

223MilesofSewerForceMain

279MilesofSewerGravityMain

246SewerPumpingStations

416GrinderUnits

215StepUnits

4WastewaterTreatmentFacilities

2WaterTreatmentFacilities

12ElevatedStorageTanks

6,755Manholes

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Awards

TheGeorgetownCountyWaterandSewerDistrictstrivesforexcellence.TheDistrictemployshighlyskilled,creative,andconscientiousindividualsinanefforttoprovidethebestpossibleservicetoourcustomersinanexpeditious,fiscallyresponsible,andcourteousmanner.

TheDistrict’s employeeshavebeen successful!Apartial list of ourmost recent awards from theindustry’stradeandregulatoryagencies,andprofessionalorganizationsisprovidedbelow.Arecentcustomer satisfaction survey also indicates a 94% level of overall satisfaction with the servicesprovidedbytheDistrict,andasoflate,therehavebeenagrowingnumberoflettersandcallsinpraiseofouremployees.

AreaWideOptimizationAward:Everyyearsince2002!(AwardgivenbySCDHECfor

surfacewatertreatmentplantsthatproducedrinkingwaterthatexceedsallstateandfederalregulated

standards.)

PartnershipforSafeWater15YearDirectorsAward2015

SCDHECFacilityExcellenceAward2014:NorthSanteeWastewaterTreatment

Plant

WEASCandSouthCarolinaWaterOperatoroftheYearAward2014: Michael

Yip

SCDHEC Facility Excellence Award 2013:DeBordieuWastewater Treatment

Plant

WEASCDistrictChairman2015:BobDavis

SCAWWA/WEASC2015and2016BestTastingWaterinSouthCarolina

WEASCMaintenanceOperatoroftheYearAward2015:MichaelMcLean

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Employee Recognition

ThisyeartheEmployeeRecognitionCommitteeacceptednominationsfortheOfficeEmployeeoftheYearandtheFieldEmployeeoftheYear.Seventeenemployeeswerenominatedasfollows:

OfficeEmployeeoftheYear FieldEmployeeoftheYear

BonnieAckerman TimBrysonShelleyKaufman SteveBarnhillLaverneKearse CarolCummingsCarolynPlayer FrederickGreenJohnMarkRobinson ShaneJacobsDorisSimmons RichardPostonJanelleSkipper CalebWilderDeannaVause

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Employee Recognition

The2016OfficeEmployeeoftheYearisKimCanoandthe2016FieldEmployeeoftheYearisBobMeierdiercks.KimhasbeenwiththeDistrictforjustovertwoyearsandiscurrentlyaBillingAssociate.Inthattimeshehasshownherdedicationtohelpingfellowemployeesinotherdepartmentsdoingwhateverittakestogetthejobdone.Shehasreadmetersandtakenameterwrenchtoturnwateronwhileonherwayhome!BobhasbeenwiththeDistrictforover11yearsandiscurrentlytheMaintenanceDepartmentSupervisor.EventhoughBobstaysbusysupervisingtheDistrict’slargestdepartment,heneverlosessightofthefactthatcustomerserviceisourhighestpriorityandalsocheerfullyhelpsoutotherdepartments.AttheDistrict,wefeelallemployeesarevaluedandimportantbutwearepleasedtorecognizeemployeeswhogobeyondandhavetheirpeersrecognizeandcelebratetheirworth.CongratulationsBobandKim!

2016OfficeEmployeeoftheYear 2016FieldEmployeeoftheYear

KimCano BobMeierdiercks

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A Look Back at FY2016 – Significant Accomplishments

100%compliantwithallprimaryregulatoryrequirements.

ThePlantersvilleEDRwatertreatmentsystem’sNationalPollutionDischargeEliminationSystempermit(NPDES)waseliminatedbyconnectingthewastelinetothenewsanitarysewersystem.

ReducedhydraulicmodelingupdatesforDHEC’shydrantflowtestingrequirementtoevery3years.

CompletedYauhannaBridgeWaterLineRelocation.

CompletedPetigrugravitysystemrepair/replacement.

CompletedCapitalGoodNeighborwaterlineextensiononRamboLane/MiracleCourtandFulmoreDriveinGeorgetown.

ExtendedwaterdownWireDriveinAndrews.

Installedemergencydischargeconnectionforpumpstations316and310.

CompletedinspectionofallfirehydrantsintheMurrellsInletGardenCityservicearea.

ReplacedgalvanizedwatermainsandservicesservingSeaLevelLoop,MidwayDrive,BumpyCourt,andDogwoodDrive.

CompletedtheCareerDevelopmentProgramforallpositionsbelowtheSupervisorLevel.

ConductedaDistrictEmployeeOpinionsurvey.

Fourteenemployeescompletedanintensivetwo‐yearLeadershipGrouptrainingproject.

Continuedemphasisontrainingandemployeeresponsibilityforobtainingtheskills,certifications,andlicensesneededtoadvanceintheDistrict,whichledto11internalpromotionsduringthefiscalyearand18additionalenvironmentallicenseupgrades.

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FY2017 – Personnel Request Summary

FY 2013 FY 2014 FY 2015 FY 2016 FY2017

BUDGET BUDGET BUDGET BUDGET REQUESTED

MANAGEMENT 6 6 6 6 6

GENERAL ADMINISTRATION

Accounting 14 14 14 14 14

General Services 3 1 1 1 1

Customer Service 7 7 7 8 8

IT Manager 1 1 1 1 1

ENGINEERING DIVISION

Engineering 5 6 6 6 6

Construction 10 10 10 10 10

OPERATIONS DIVISION

Wastewater Ops 6 6 6 6 6

Water Ops 9 9 9 10 10

Maintenance 15 15 15 16 16

TOTAL POSITIONS 76 75 75 78 78

POSITIONS ADDED/DELETED 0 (1) 0 3 0

DEPARTMENTS

8%

31%

21%

40%

Distribution by Department

MANAGEMENT

GENERAL ADMIN

ENGINEERING

OPERATIONS

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FY2017 – Departmental Requests

ExecutiveManagement

PAY POSITIONS TOTAL

POSITION TITLE BAND STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Executive Director N/A RF 1 1 0 1

Engineering Director 17 RF 1 1 0 1

Operations Director 17 RF 1 1 0 1

Finance/Adm Svcs Director 17 RF 1 1 0 1

Human Resources Manager 15 RF 1 1 0 1

HR Generalist/Exec. Assistant 9 RF 1 1 0 1

6 6 0 6TOTAL POSITIONS

GeneralServices

PAY POSITIONS TOTAL


Administrative Assistant 3 RF 1 1 0 1


CustomerServices

PAY TOTAL


Customer Svcs Supervisor 12 RF 1 1 0 1

Customer Svcs Associate 4 RF 6 6 0 6

Customer Advocate 6 RF 1 1 0 1


POSITIONS

InformationTechnology

PAY TOTAL


IT Manager 14 RF 1 1 0 1


POSITIONS

Accounting

PAY TOTAL


Finance Manager 15 RF 1 1 0 1

Accounting Associate 3 RF 2 2 0 2

Inventory Associate 2 RF 1 1 0 1


POSITIONS

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Billing

PAY TOTAL


Accounting Supervisor 12 RF 1 1 0 1

Bill ing Associates 3 RF 4 4 0 4

Meter Readers 2 RF 5 5 0 5


POSITIONS

Engineering

PAY POSITIONS TOTAL


Staff Engineer 16 RF 1 1 0 1

Engineering Technician 9 RF 3 3 0 3

Backflow Technician 7 RF 1 1 0 1

Administrative Assistant 3 RF 1 1 0 1

TOTAL POSITIONS 6 6 0 6

Construction

PAY TOTAL


Construction Supervisor 12 RF 1 1 0 1

Crew Leader 8 RF 2 2 0 2

Associate Construction Tech 1 RF 0 6 0 6

Construction Technician 5 RF 7 1 0 1

10 10 0 10

POSITIONS

TOTAL POSITIONS

WaterOperations

PAY TOTAL


Water Ops Supervisor 12 RF 1 1 0 1

Assoc Water Technician 1 RF 0 1 0 1

Water Operator 9 RF 8 7 0 7

Lab Analyst 9 RF 1 1 0 1


POSITIONS

WastewaterOperations

PAY TOTAL


Wastewater Ops Supervisor 12 RF 1 1 0 1

Assoc Wastewater Tech 1 RF 0 1 0 1

Wastewater Operator 9 RF 5 4 0 4


POSITIONS

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Maintenance

PAY TOTAL


Maintenance Supervisor 12 RF 1 1 0 1

Asst Maintenance Supervisor 11 RF 1 1 0 1

Associate Maintenance Tech 1 RF 0 10 0 10

Maintenance Technician 7 RF 14 4 0 4


POSITIONS

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Human Resources – Responsibilities, Goals and Objectives

It is the function of the HumanResource Department to provide human resource support to allDistrictdivisionsanddepartments.

STATEMENTOFRESPONSIBILITIES:

Assistandadviseemployeesoncareerdevelopment,benefitissues,andallotherpersonnelmatters.

ProvideadministrationsupporttoensurecompliancewithDistrict,State,andFederalpoliciesandguidelinesregardingrecordretention,andcompliancewithregulations.

Develops,recommendsandmonitorstheDistrict’spersonnelpoliciesandhandbookincluding,compensationplan,benefits,andemployeerelations.

Coordinateallhumanresourcetrainingandmanagementactivitiesincludingrecruitment,evaluations,jobdescriptionsandclassifications,andemployeebenefits.

Assistandadvisemanagersandsupervisorsonallemployeerelatedissuesincludinghiring,performancemanagement,trainingtoensurefairnessandequitythroughoutthesystemandcompliancewithallfederalandstateregulations.

MAJORGOALSANDOBJECTIVES:

Developandconductorcoordinateatleastthreesupervisorandmanagertrainingsessionsontopicssuchashiring,employeeevaluations,settinggoals,employmentlegislation,safety,etc.

Reviewallapplicantsforopenpositionstoensurethatqualifiedcandidatesareprovidedequalopportunityforemploymentandprovideassistanceandguidancetothehiringsupervisorsanddirectorsthroughoutthehiringprocess.

Maintain,monitor,andreportonDistrictHRMetricsincluding,turnover,timetofill,workerscomp,evaluations,etc.Provideassistance,guidance,orrecommendationsforchangeforcontinualimprovement.

ConductongoingDistrictscreeningincludingpre‐employmentbackgroundchecks,drugscreening,motorvehiclechecks,andcreditchecksofemployeesinfinanciallysensitivepositions.

Coordinateandmonitorallpersonnelexpensesincludingraises,promotions,benefits,training, screening, and other human resource expenses to be within the GCWSD budgetguidelines.

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Finance/Administrative Services – Responsibilities, Goals, and Objectives

It is the function of the Finance/Administrative Services Division to coordinate and manage allactivitiesoftheFinanceDepartment,CustomerServicesDepartment,BillingDepartment,CustomerAdvocate,andITManagementforboththeWaccamawNeckandGeorgetownfacilities.


ProvidetheBoardofDirectors,ExecutiveDirector,DepartmentDirectorsandsupervisorswithtimelyandaccuratefinancialinformationandsupport.

Ensure compliance with bond covenants, grant agreements and all financial reportingregulations.

Development,maintenanceandcomplianceassurancewiththeDistrict’sPurchasingPolicy.

Monitoroperatingandcapitalrevenuesandexpendituresagainstbudgetlevels.

Provideprocurementsupport,accountspayableandpayrollservicesforalldepartments.

Establishinternalcontrolsensuringpropersafekeepingofallassets.

CoordinationandimplementCustomerServicesDepartmentfunctionsandactivities.

Ensuretimelyandaccuratebillingforallwaterandseweraccounts.

Providedataretention,transfer,andprocessingformaintainingcomputerprograms,reportsandactivities.

Provideadministrativecoordinationbetweenalldepartmentssuchasworkforce,vehicular,materialandequipmentdistribution.

Maintainassessmentrecordsandupdatetheannualassessmentroll.

Ensureappropriatelevelsofinventoryandsafeguards.

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ProvidemonthlycombinedanddepartmentalfinancialreportstoeachDirectorthatcoversthedepartmentalbudgetaryandexpenditureactivitiesbythe10thofthefollowingmonth.

Maintainbondcoverageratioof150%orhigher.

CreatecapitalizationofassetspolicyforBoardofDirectorspresentationinFY2017.

UpdatetheProcurementPolicyinFY2017.

EvaluateLogics/CityworkscompatibleInventorySystem.

Conductinventorycountsattheendofeachtrimesterforreconciliationwiththeperpetualinventorysystem.Goalislessthan1%shrinkageinthePawleysIslandwarehouse.

Performquarterly"spot"auditsofpettycashandCustomerServices/Collectioncashdrawerbalances.

Createameterreplacementschedule.Goalistoreplaceallmetersolderthan25yearsbyFY2019.

AdministertheDistrict'sGoodNeighborProgramwithagoalofdistributing100%offundsdonatedinFY2017andmaintainingthecurrentaccountbalance.

Ensureallmetersarereadaccuratelyandfailingmetersareidentified.Goalislessthan0.10%re‐readmetersandnometersreadingzerofortwoconsecutivemonthsbecauseofmeterfailure.

RotatemeterreadercycleseachFebruary1st.

Maintaininternalcontrolsinthepurchasing,payrollandaccountspayablefunctionsthroughperiodicalrotationbetweenstaff.Goalisrotationofdutiesonaquarterlybasis.

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Engineering – Responsibilities, Goals, and Objectives

TheEngineeringDivisionisresponsibletoassist,coordinate,andfacilitatedeveloper,commercialand industrial interest in the planning, design and construction of thosewater and sewerutilityimprovementsessentialtotheorderlyandtimelycompletionofnewwaterandsewersystems.Insodoing,itistheresponsibilityofthedivisiontogivetechnicaladvice;reviewprojectplans;coordinatetheissuanceofconstructionandoperatingpermitsbyotheragencies;overseeutilityconstructionand facilitate the conveyance to the District those utility systems to be accepted, operated andmaintainedbytheDistrict.TheDivisionprovidesorcoordinatestheinstallationofallnewcustomerwaterandwastewaterconnections.AssistanceisprovidedtotheOperationsDivisionwhenheavyconstructionactivitiesarerequiredtooperate,maintain,repair,orconstructutilitysystemsundertheresponsibilityoftheOperationsDivision.TheConstructionDivisionprovidesforthecontinuousmaintenanceandrepairoftheDistrict’swaterdistributionsystemandcompletestheconstructionof“in‐house”waterandsewerCapitalImprovementProjectsasassigned.


Provideplanning,engineering,andconstructioninacosteffectivemannerforthebettermentof the residents and customers of the District. Ensure the orderly expansion of Districtutilitiesthroughthestandardizationofmaterialsandengineeringdesign.

Maintaincontactwithlocal,state,andfederalagenciestoensurethattheDistrictcomplieswithallregulationsandoperatingproceduresrequiredbysuchagencies.

Assist area developers and property owners in the extension of District utilities withindevelopmentsbeingconnectedtotheDistrict’sutilitysystems.

Inconjunctionwithotherdivisions,update,implement,andmonitoraDistrictwideCapitalImprovementsProgram/CapitalBudget.

Developanddesigncertaincapitalexpansionprojectstobecompletedby"in‐house”staff.

Makesanitaryandeffectivewaterandsewertapconnectionswithin2weeksofworkorderissuance.

Provide timely repairs and assist with maintenance of the District’s water distributionsystemswithin5daysofnoticeandsewercollectionsystemswithin12hoursofnotice.

CoordinatetheDistrict’sCapitalGoodNeighborwaterutilityprogram.

Protectthewaterdistributionsystembyinstallingandtestingbackflowdevices.

SupportOperationsandMaintenanceDepartmentsduringmajorworkactivitiessuchasnewinstallationsandmaintenanceofwell,plant,andpumpstationfacilitiesasassigned.

Coordinatetheorderlytransferofrecentlyconstructedwaterandwastewatersystemstotheappropriate,responsible,operatingdepartments.

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Coordinateengineeringconsultantsretainedby theDistrict from initiation through to thecompletionofplanningstudies,projectdevelopment,andconstructiondesignasassigned.

Update,andmaintainasystemofconstructionrecorddrawings.

UpdateandimprovetheDistrict’sGIS,WorkOrderSystemandAssetManagementsystem.

Effectively administrate the Development Review Process using industry‐approvedstandardsalwaysendeavoringtoberesponsivetotheneedsofthedevelopmentcommunitywhileusingqualityimprovementmethods.

ProvideutilitylocationservicesinkeepingwithSouthCarolinautilitylocatestatutes.


Conductanannualinformationalworkshop(s)forrealestateagencies,developers,architects,and engineers on the processes and procedures involved in the review and approval ofdeveloperprojectsinthecommunityandcounty.

Conduct/attendabi‐annual informationalworkshopwiththeCountytodiscussupcomingprojectsandour5‐yearplans.

Installanemergencydischargeconnectionatpumpstation315and310.

CompleteannualinspectionofMurrellsInletGardenCityfirehydrants.

Inspect100%oftherequiredtestablebackflowpreventiondevicesforcalendaryear2017.

Collectcurrenttestresultsfor100%ofidentifiedlargebackflowdevices.

Repairwatermainbreakswithinfivebusinessdaysinamannerthatprotectspublichealth.

Repairforcemainbreakswithin12hoursinanenvironmentallyresponsibleway.

Respondto100%oftheutilitylocateswithinthe72‐hournoticeperiodasdefinedbyPUPS.

Installnewwatertapswithin10workingdaysofreceivingtheworkorder.

Updatethedistributionmodelforthesanitarysurvey.

CompleteallcapitalprojectsapprovedbytheBoard.

tommiek

Text Box

Midway fire hydrants

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106 and 107

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Operations Division – Responsibilities, Goals, and Objectives

It is the function of theOperationsDivision to operate,maintain, and repair allwater treatmentfacilities,allwastewatertreatmentfacilitiesandallwastewaterpumpingandtransmissionfacilities.ItisthefunctionoftheDivisiontoprovidealllaboratory,operational,andcompliancemonitoringservicesforboththewaterandwastewatertreatmentsystems.


Responsibleforensuring100%regulatorycompliancewithallwater,wastewater,andsludgemanagementguidelines.

ResponsibleforthesafetyofallDistrictemployees.

EnsurethatallrequiredlaboratorytestsareconductedinconformancewiththeU.S.EPAandtheSouthCarolinaDepartmentofHealthandEnvironmentalControlstandards.

Maintain,inspectandrepair,allgravitysewersystems.

Protectthepublichealthbyprovidingclean,safewaterandsewerservices.

ProvidefortheproperandcontinuousmaintenanceandoperationoftheDistrict’spumpingstationsandassociatedappurtenances.

Provide mechanical and electrical construction, maintenance, and repair, as needed,throughouttheDistrict’swater/sewersystem.


Continuing efforts of operations personnel to ensure the successful operation andmaintenanceoftheDistrict’ssurfacewaterplant,wellsandwastewatertreatmentplants,andcontinuedcompliancewithallStateandFederallicensingrequirements.

ProvidecontractsamplingandtechnicalsupporttoGeorgetownCountyintheoperationoftheGeorgetownCountyLeachateTreatmentSystem.

EnsurecompliancewithOSHArequiredworkplacehazardmitigationrequirements.EnsurethatallfacilitiesandequipmentwithinareasofresponsibilityaremaintainedandoperatedinaccordancewithOSHAstandards.

EliminatesafetyincidentsthroughouttheDistrict.

ContinuetoupdatetheDistrict'ssystem‐widesamplesiteplansinkeepingwiththeRevisedSafeDrinkingWaterAct "TotalColiformRule”.Attentionwillbeplacedonthenewwatersystemdistributionimprovementsasthesystemsexpand.

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EnsurecompliancewithalloftheregulationsandrequirementsoftheSafeDrinkingWaterAct,withparticularattentiononcompliancewiththerecentlytightenedrequirementsoftheStageTwoDisinfectionByproductsRule.

Ensure the District’swastewater facilities complywith all the requirements of the CleanWater Act including compliance with all NPDES permit and Compliance EvaluationInspectionrequirements.

ContinuetomaintainandoperatetheDistrict'slaboratoryfacilityinstrictaccordancewithStateandFederalstandards.

ConductasystemwidefreechlorineflushandalloftheDistrict’swatersystemsataminimumofonceannually.

ExpandthetrainingactivitiesrelatedtotheDistrict’sEmergencyResponseTeam(Haz‐Matteam).Trainingexerciseswillbeconductedonaquarterlybasis.

Continued emphasis will be placed on locating and controlling sewer infiltration/inflowproblems throughout the District’s service area. Particular attentionwill be given to thecleaningandsmoketestingintheWesternGeorgetownandMurrellsInletserviceareas.Thiswill help ensure District compliance with EPA’s Capacity, Management, Operations andMaintenance(CMOM)program.

AnnuallyupdatetheDistrict’s“WaterQuality”websitereporttoensurethatourcustomersareprovidedthewaterqualityinformationtheydesireanddeserve.

Complete and distribute the District’s annual “Consumer Confidence Report” by thecompliancedeadlineofJune30.

AttentionwillbeplacedinattainingtheDirectorsAwardforthePartnershipforSafeWater’sDistributionOptimizationProgram.

Developamorecomprehensivewater‐lossauditprogramutilizingAWWAmethodologytofullycomplywithDHECsanitarysurveyrequirements.

Continue to performmonthly documented safety trainingmeetings, expanded to includetrainingexercisesanddrills forappropriatesafetyprocedures,payingspecialattentiontoassureallOSHArequirementsarebeingmet.

Continue toassesssecuritysystems throughout theDistrict.Emphasiswill continue tobeplaced on protecting the District’swater production andwater distribution facilities andimplementingvulnerabilityassessmentrecommendations.

Continuethecapitalrepairandreplacementofcriticalcomponentslocatedatvariouswater,wastewaterandsewerpumpstations.

MaintaintheDistrict’ssanitarysewercollectionsystemwithadditionalmanholeandpumpstationwet‐wellrehabilitations,andthecompletemechanicalrehabilitationofPS‐227,andPS‐290duringthe2017fiscalyear.

25

Reviewtheelevatedtank/clear‐wellcleaningandinspectionscheduletoplanshortandlong‐termmaintenanceneedsandcapitalbudgetingrequirements.

IdentifythelocationofalltheairreleasevalvesonforcemainsthroughouttheDistrictanddevelop a scheduled maintenance program to test the valves and assure their properoperationonafixedschedule.

Coordinate one Hurricane Response exercise in keeping with the District’s EmergencyResponsePlan.

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The Georgetown County Water and Sewer District

The Past and the Present

TheGeorgetownCountyWaterandSewerDistrictwasestablishedonJune22,1967byAct733ofthe1967SessionoftheGeneralAssemblyoftheStateofSouthCarolina.TheDistricthasnotaxingauthority.Thecostsofoperationsandmaintenancemustbefundedwithuserfees,andnewsystemimprovementsare fundedwith capitaldonations fromcustomersanddevelopers, federal and/orstategrants and loans, andgeneral revenues.Today,GeorgetownCountyWater&SewerDistrictprovideswaterand/orsewerservicetomostofthemorethan517squaremilesasaSpecialPurposeDistrict.

ForFiscalYear2017,theDistricthasinplaceaCapitalImprovementPlandesignedtobuildonthecapitalrepairandreplacementprograminplaceaswellasmakesystemimprovements.TheDistrictcontinuestoexpandthewaterandwastewatersystemsthroughoutGeorgetownCountyinresponsetogrowthandtocommunityneed.ForFY2017,theSampitWaterProjecthasbeenfundedthroughaCommunityDevelopmentBlockGrant.Inaddition,modestincreasesindeveloperactivityisexpectedto lead to contributions of completedwater distribution and sewer collection systems from thedevelopmentofbothresidentialandcommercialproperties.

The Georgetown County Water and Sewer District’s focus in the past has been building theinfrastructurenecessarytosupporttheindustrialandpopulationgrowthinGeorgetownCounty.TheDistrictremainscommittedtosupportingfuturegrowthandisnowpurposefullymaintainingtheexistingsystemandplanningforthecapitalrepairandreplacementoftheaginginfrastructure.

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The History of Service 1970s to Present

29

Current Economic Conditions

The economy of Georgetown County and the entire Grand Strand is improving according to theWaccamawRegionalCouncilofGovernmentsEconomicOutlookBoard’s Spring2016report.TheunemploymentrateremainedstablethispastyearwiththerateforGeorgetownCountyforecasttobe7.6%.

ThetourismindustrycontinuestogrowwiththeOccupancyRateduringthefirstquarterofcalendaryear2016showinga2.3%increaseoverthenumbersfor2015intheGrandStrandareainclusiveofbothHorry andGeorgetown counties. Another significant indicator of economic recovery can beobservedinthenumberofbuildingpermitsissuedbyHorryandGeorgetownCountiesduringthatsame time.Therewere899buildingpermits issued in the first quarter of2016, for the countiescombined, representingan increaseof10.9%over thenumberofpermits issuedduring the firstquarterof2015.

The District’s growth rate is reflective of the overall economic health of Georgetown County.Consequently,theaverageannualcustomergrowthrateforthelastfive‐yearperiodis1.43%.TheoverallcustomergrowthrateforthetwelvemonthsendingJanuary2016is1.70%.Byservicearea,therateofgrowthexperiencedduringthepastthreecalendaryearsisasfollows:

Jan2014 Jan2015 Jan2016

GeorgetownServiceArea ‐0.42% 1.28% 1.13%

WaccamawNeckServiceArea 1.87% 1.84% 1.99%

GardenCityServiceArea ‐9.04% ‐0.62% ‐0.16%

TheperiodbetweenJanuary2012andJanuary2014representedoneofthelowestgrowthperiodsintheDistrict’shistory,consistentwiththeoveralleconomicconditions,bothlocallyandnationally.However,thereareseveraldevelopmentprojectsintheserviceareaaswellasincreasingbuildingactivityatthistime.Asaresult,theDistrictisprojectinggrowthinthe2‐3%rangeforFY2017,yetmaintainingamoreconservative1%expectationrelatedtobudgeting.

30

Historical Customer Growth – By Service Area

31

The District’s 10 Largest Customers

American Gypsum Manufacturing 142,836$ 3.82%SEFA Manufacturing 30,948 0.62%Georgetown Co. Detention Jail Facility 15,235 0.41%Tidelands Hospital Hospital 14,832 0.40%Tidelands Hospital Laundry 11,616 0.31%Tidelands Hospital Cooling Tower 9,839 0.26%Bridgewater HOA 9,264 0.25%Inlet Point HOA 8,972 0.24%Litchfield Inn Hotel 8,400 0.22%3V Corporation Manufacturing 7,392 0.20%

Total 259,334$ 6.74%

Town of Andrews Municipality 171,864$ 3.68%Carolina Water Service Water Provider 92,667 1.99%3V Chemical Manufacturing 36,630 0.78%Green Acres Mobile Home Par 35,345 0.76%Georgetown Co. Detention Jail Facility 26,676 0.57%Georgetown Co. Landfill Waste Facility 19,608 0.42%Tidelands Hospital Hospital 19,044 0.41%Bridgewater HOA 14,904 0.32%Inlet Point HOA 14,748 0.32%Litchfield Inn Hotel 13,488 0.29%

Total 444,974$ 9.53%

10 Largest Water Customers - FY2015

10 Largest Sewer Customers - FY2015

BUSINESS TYPE

BUSINESS TYPE

% TOTAL BILLED

REVENUES

% TOTAL BILLED

REVENUES

BILLED REVENUES

FY2015 USER NAME

BILLED REVENUES

FY2015 USER NAME

32

Budget Development

33

Determining Rates

TheFY2017budgetingprocessincludedreviewingtheratesandcharges,thenevaluatingtheabilityoftherevenuegeneratedtosupporttheoperatingandcapitalneedsoftheDistrict.ForFY2017,theoperating needs of the District are expected to bemet by operating revenues generated by thecurrentrates.However,asthesystemhasaged,thecosttorepairandreplacethecapitalcomponentsofthesystemhasincreased.Asaresult,thewaterandseweravailabilityfeesarebeingmodifiedtoprovidethefundsrequiredforplannedrepairsandmaintenanceofthecapitalcomponentsofthesystem.TheFiveYearCapitalImprovementPlan,includedaspartofthebudgetdocument,detailsthoseplansandcosts.

Generally,theannualbudgetprocessis:

The District begins the budgeting process in December of each year at which time theindividualdepartmentsrequestfundingfortheupcomingfiscalyear.Administrationreviewstherequestsandworkswiththedepartmentstodetermineanappropriatebudget.Duringthatsameperiod,therevenuesoftheDistrictareestimatedfortheupcomingfiscalyearbasedonhistoricaltrendsandcurrentratestructure.

Thefundingrequestsandestimatedrevenuesarethencomparedtodetermineanyexpectedshortfall.TheAdministrationthenworkswithstafftodetermineifrateadjustments,fundingreductions,orsomecombinationistheappropriatemethodtoattainabalancedbudget.

InMarchandApril,theBoardofDirectorsreviewtheExecutiveDirector’srecommendationsinaseriesofBudgetWorkshops.

The proposed budget is reviewed in May at the regularly scheduled Board of Director’smeeting.

ApublichearingisheldattheJuneBoardofDirector’smeeting.TheBoardofDirectorsadoptsthebudgetattheregularJunemeetingoraspecialmeetinglaterinthemonthdependingonpublicinput.

34

FY 2017 Rates

Asstatedpreviously,theDistrictreviewedtheratesandchargesduringthepreparationoftheFY2017budgettodeterminetheactualcostofprovidingservicesandprovidefundingfortheCapitalImprovementPlan.Forthemonthlybillingcharges,theonlyrecommendedmodificationsareforthewater availability fee and the sewer availability fee. Themodifications of these two rates are toincreasefundingoftheDepreciationandCapitalReplacementFundforcapitalrepairs.Also,aspartoftheFY2017ratesandchargesupdate,staffreviewedtheactualcostofprovidingdirectservicessuchas the installationofawatermeter tap, sewer taporgrinderunit.Thereviewof these feesupdatedthecostoflaborandmaterialsaswellasareviewofthetimespenttocompletethetask.ThetablebelowreflectsthemostcommonRatesandChargesandthechanges,ifany.ForacompletelistandexplanationoftheRatesandChargesoftheDistrict,pleaserequestacopyoftheFY2017RatesandChargesResolutionfromourCustomerServicesDepartment.

FEE OR CHARGE FY 2016 FY 2017

Increase

(Decrease)

Monthly Billing Charges

Water Volume 1.98$ 1.98$ ‐$

Sewer Volume 3.16 3.16 ‐ Customer Charge 6.50 6.50 ‐ Customer Charge ‐ Sewer Only 5.27 5.27 ‐

Water Availability Fee 3.95 4.31 0.36

Sewer Availability Fee 4.08 4.97 0.89

Bulk Water 1.55 1.55 ‐

Bulk Sewer 1.99 1.99 ‐

Unmetered Sewer Service 28.54 29.20 0.66

Water Impact Fee ‐ Water Impact Fee Waccamaw Neck 990.00 990.00 ‐

Water Impact Fee Western Georgetown 1,240.00 1,240.00 ‐

Sewer Impact Fee ‐

Waccamaw Neck 1,250.00 1,250.00 ‐

Western Georgetown County 1,130.00 1,130.00 ‐

Water Tap ‐

Water Tap (3/4‐inch) without Backflow 838.00 838.00 ‐

Water Tap (3/4‐inch) with Backflow 906.00 906.00 ‐

Meter Placement Fee

3/4‐inch 86.00 86.00 ‐

Backflow Administration/Testing Fee

Backflow Admin/Test Fee Biannual testing 2.47 2.47 ‐

Backflow Admin/Test Fee annual (High hazard) 4.94 4.94 ‐

Backflow Admin for devices greater than 2" 0.76 1.52 0.76

3/4‐inch 368.00 368.00 ‐

3/4‐inch 577.00 577.00 ‐

Testable Backflow Prevention Device Installation for Existing Irrigation Service

Installation of the Double‐Check Backflow Prevention Device

Installation of the Reduced‐Pressure Backflow Prevention Device

35

FY 2017 Rates

FEE OR CHARGE FY 2016 FY 2017 Increase

(Decrease)

Meter Box Relocation (New Tap Required)

3/4‐inch 620.00 620.00 ‐

Meter Box Relocation (Retap Not Required)

3/4‐inch 489.00 489.00 ‐

Meter Box Relocation (Raise Box Only)

3/4‐inch 185.00 185.00 ‐

Wet Tap Base Charge 1,996.00 1,996.00 ‐

Hydrant Meter Service 225.00 225.00 ‐

Hydrant Relocation (New Tap Required) 3,013.00 3,013.00 ‐

Hydrant Relocation (Retap Not Required) 1,182.00 1,182.00 ‐

Fire Hydrant Installation 5,313.00 5,313.00 ‐

Sewer Service Administration Charge 96.00 96.00 ‐

Sewer Tap

Depth of excavation 0‐6 feet, line on same side 2,996.00 2,996.00 ‐

Depth of excavation 0‐6 feet. line on opposite side 5,702.00 5,702.00 ‐

Sewer Reconnect 706.00 706.00 ‐

Step Unit Installation 6,544.00 6,544.00 ‐

Grinder Pump Unit Installation:

Residential Unit, 30" diameter, 6' depth, simplex 6,887.00 6,887.00 ‐

Residential Unit, 30" diameter, 8' depth, simplex 7,191.00 7,191.00 ‐

Delinquent Disconnect/Reconnect

Same Day 40.00 40.00 ‐

Regular Hours Next Day 50.00 50.00 ‐

After Hours 110.00 110.00 ‐

Sewer Only 50.00 50.00 ‐

Miscellaneous Customer Charges

Quick Connect "Temporary Service" 45.00 45.00 ‐

Meter Test 90.00 90.00 ‐

Field Service Charge 51.00 51.00 ‐

Customer Service Charge 51.00 51.00 ‐

Customer Service Charge Sewer Only 30.00 30.00 ‐

Returned Check (State Law Maximum) 30.00 30.00 ‐

Customer Deposits

Owner Occupied ‐ Water 50.00 50.00 ‐

Owner Occupied ‐ Sewer 50.00 50.00 ‐

Owner Occupied ‐ Combined 100.00 100.00 ‐

Rental ‐ Water 100.00 100.00 ‐

Rental ‐ Sewer 100.00 100.00 ‐

Rental ‐ Combined 200.00 200.00 ‐

36

History of Low Rates

TheGeorgetownCountyWater&SewerDistricthasalonghistoryoflowratesandservicecharges.The following graphic illustrates the District’s average (6,000 gallons, water & sewer) monthlycharge since1994.A recent rate surveyof nearbywater and sewerproviders is includedon thefollowingpageforcomparison.

37

Current Regional Rate Comparison

Water Only Sewer Only Water & Sewer

Grand Strand Water & Sewer 18.90 22.54 39.84

GCWSD (FY2016) 22.33 28.31 45.37

GCWSD (FY2017) 22.69 29.20 46.62

Rural (GCWSD Sewer)* 25.80 28.31 54.11

Andrews (within Town) 24.38 29.79 54.17

Browns Ferry (GCWSD Sewer)* 30.17 28.31 58.48

City of Georgetown (within City) 25.93 35.12 61.05

Carolina Water (Rural Water)** 25.80 57.58 83.38

Mt Pleasant (within Town) 32.42 43.40 75.82

Williamsburg 34.60 44.22 74.89

Andrews (outside of Town) 40.64 50.73 91.37

City of Georgetown (outside of City) 46.32 62.45 108.77

*Water only, sewer services provided by GCWSD

**Sewer services only, water provided by Rural Water

From: Utility Websites or direct contact with Utility ‐ Updated May 3, 2016

MONTHLY SERVICE CHARGE COMPARISON

Based on 6,000 gallons usage

38

FY2017 Financial Projections

39

Budget Overview

The Fiscal Year 2017 Annual Operating Budget including debt service totals $15,797,240 inexpenditures,anincreaseof$683,450,or4.52%,fromtheFiscalYear2016budget.

Total revenues are projected to be $15,797,240. This projection does not include non‐operatingimpactfeerevenuesorrevenuesfromthesaleofsurplusproperties.Impactfeesarenotincludedbecause these revenues are specifically earmarked for capital improvements or related debtobligationsandarenotconsideredforoperatingpurposes.Thetotalrevenuesincreaseisbasedonamodestprojectedgrowthrateof1%andtheproposedratechanges.

AvailabilityfeesaredesignedtopayforthecapitalrepairandreplacementaswellasthedebtserviceassociatedwiththeinfrastructurerequiredtoprovidethecoreservicesoftheDistrict,thetreatmentand transmission of water, and the collection and treatment of wastewater. The debt servicerequirements,asbudgeted,arebasedontheexistingdebtstructureoftheDistrictasofJune30,2016.TheDistrictrefundedasubstantialportionofthedebtstructureinAugust2015.TherefundingofthemajorityoftheUSDArelateddebtgeneratedsignificantlong‐termsavingsaswellasareductionintheannualdebtservicescosts.FY2017willseea$612,876reductioninannualdebtservicerelatedtotherefunding.Thisyearalsoincludesamodificationoftheavailabilityfeestofundtherenewalandreplacementofexistinginfrastructure,specificallyforpayingforincreasingcapitalrepairandreplacementneeds.

ACapitalImprovementsBudgetforFY2017isalsoincluded.TheCapitalBudgettotalis$4,260,000,with $360,000 planned for capital equipment, $2,172,000 planned for water improvements and$2,088,000plannedforwastewaterimprovements.

Operatingandrestrictedrevenueandexpenditureprojectionsarepresentedinthenextsectionofthisdocument.

40

Revenue Projections

Revenuesprojectedinthisreportarebaseduponthemonthlyservicefeesrecommendedinaratestudypreparedbystaffthisbudgetyear.FortheFY2017budget,theDistrictisrecommendingaratechangetotheavailabilityfeestofundongoingcapitalrepairsandreplacements.Totalrevenuesareprojectedtoincrease4.52%duetotheratechangeandcustomergrowth.

Duringthelastfewyears,theDistricthasexperiencedminimalgrowthinthecustomerbase,exceptfor those customers added to the system because ofwater and sewer utility extensions servingexistingcommunities.RevenueprojectionsforFY2017arebaseduponthiscurrenttrendoflimitedgrowth,estimatedat1%,and therecommendedrateschedule.Forcomparison, the totalFY2017revenueprojection is$15,797,240while the totalFY2016revenuewasbudgetedat$15,113,790.Thisisanincreaseof$683,450or4.52%.

WaterFund

WATER FUND revenues, as proposed, will increase from the FY2016 budget of $4,325,402 to$4,413,500,anincreaseof$88,098.

WaterVolumeCharge incomeispredictedat$4,080,000,whichis$42,000morethantheFY2016budget.Thisincreasereflectsthemodestprojectedcustomergrowth.

WaterServiceConnectionincomeisexpectedtoremainthesameasFY2016.Theprincipalsourceofrevenueinthiscategoryisthepurchaseofnewresidentialsizedwatertaps.WaterServiceConnectionincomeispredictedtobe$175,000.

BackflowInspectionChargeincomeisassociatedwiththestaterequirementthatallbackflowdevicesbetestedtoensuretheirproperoperationandpreventcontaminationofthepublicwatersupply.TheFY2017budgetforthisbudgetcategoryis$98,000or$26,000morethantheFY2016budgetedamountof$72,000.

Other Operating Reimbursements income is associated with contract services provided to otheragencies, internal engineering reimbursements, aswell as lineextensions,meter relocations, andreimbursements forrepairsmade to thesystemresulting fromdamagesbyotherssuchasutilityconstruction companies. Other Operating Reimbursements is projected at $60,000, representing$20,000morethantheamountbudgetedforthiscategoryinFY2016.

41

WastewaterFund

WASTEWATERFUNDrevenuesareproposedtobe$5,151,000.Thisisanincreaseof$59,654fromtheFY2016budget.

TheSewerVolumeChargeincomeprojectionwillincreasefromtheFY2016budgetof$4,951,346to$5,000,000,anincreaseof$48,654.Thisincreasereflectsthemodestprojectedcustomergrowth.

OtherrevenuesourceswithintheWastewaterFundareSewerServiceConnectioncurrentlyestimatedat$1,000,SewerTap/StepUnitwhichisforecastedat$60,000,andSewerServiceInspectionincomethat isestimatedat$20,000.Sewerserviceand tap income isdifficult topredictand isgenerallybudgetedbasedontheprojectedactualofthepreviousyearandadjustedprojectedgrowth.Asewertapistypicallychargedwhenasewertapisrequiredforanewsingle‐familylotorsubdivision.ThisrevenueisprimarilyrelatedtonewresidentialgrinderpumpstationsandSTEPunitinstallations,whichareexpectedtoberelativelystableinFY2017.

OtherOperatingReimbursementswithintheWastewaterFundisexpectedtogenerate$70,000forFY2017.Thisisa$5,000decreasefromtheamountestimatedinFY2016.

FY 2016 FY 2017 $ INCREASE % INCREASE

REVISED BUDGET BUDGET (DECREASE) (DECREASE)

WATER FUND

Water Volume Charge 4,038,000 4,080,000 42,000 1.04%

Water Service Connection 175,000 175,000 ‐ 0.00%

Meter Placement Charge 402 500 98 24.38%

Backflow Inspection Charge 72,000 98,000 26,000 36.11%

Other Operating Reimb. 40,000 60,000 20,000 50.00%

4,325,402 4,413,500 88,098 2.04%



WASTEWATER FUND

Sewer Volume Charge 4,951,346 5,000,000 48,654 0.98%

Sewer Service Connection ‐ 1,000 1,000 n/a

Sewer Tap / Step Unit 40,000 60,000 20,000 50.00%

Sewer Service Inspection 25,000 20,000 (5,000) ‐20.00%

Sewer Reconnect ‐ ‐ ‐ n/a

Other Operating Reimb. 75,000 70,000 (5,000) ‐6.67%

5,091,346 5,151,000 59,654 1.17%

42

GeneralFund:BillingandCollection

The BILLING AND COLLECTION Department revenues are estimated at $2,099,900. This is anincreaseof$44,300fromtheFY2016projectionof$2,055,600.

CustomerChargeincomeisprojectedtoincreasefromtheFY2016projectionby$24,900or1.42%.Thismonthly charge recovers costs associatedwith such expenses as personnel andpostage forutility billing purposes, meter reading personnel costs, customer service and computer andpersonnelcostsrelatedtotheprocessingandcollectionofmonthlyutilitybills.TheincreaseintheprojectedrevenueisrelatedtothemodestprojectedcustomergrowthandFY2016actualresults.

ServiceCharge income ispredictedat$115,000 forFY2017.Thischarge is related to thecostsofprocessingnewaccountsandtransfers.

DelinquentCustomerFeeandLatePaymentProcessingareassociatedwithdelinquentaccountsandaredifficulttopredict.Thecombinedtotalrevenuesfromthesesourcesarepredictedtobe$198,000whichremainsunchangedfromFY2016.

ReturnedCheckFeesareprojectedtodecrease$500fromtheFY2016budgetof$7,500.

GeneralFund:GeneralAdministration

GENERALADMINISTRATIONrevenuesareexpectedtoincreaseduringFY2017.Revenuesinthiscategoryareforecastedtobe$31,600,whiletheFY2016budgetedamountwasprojectedat$19,400.Theprimarysourceof incomehereis interestearnedonvariousinvestments.InterestIncome forFY2017 isestimated to remain thesameat$24,000. Theremaining incomecategories includingDiscountsEarned,FinanceCharges,NetCreditCardFeesandMiscellaneousIncomeproduceverylittleincomeinproportiontotheDistrict’stotalincome.

TheDistrict,becauseofbondcovenantsandlegislativemandates,mustinvestonlyinU.S.FederalGovernment collateralized investments. The budgeted rate of return on funds available forinvestmentis0.35%.



BILLING & COLLECTION

Customer Charge 1,755,000 1,779,900 24,900 1.42%

Service Charge 95,100 115,000 19,900 20.93%

Reconnect Charge 120,000 120,000 ‐ 0.00%

Late Payment Processing 78,000 78,000 ‐ 0.00%

Returned Check Fees 7,500 7,000 (500) ‐6.67%

2,055,600 2,099,900 44,300 2.16%

43

GeneralFund:Engineering

Based upon the number of separate development projects to be evaluated it is expected thatEngineeringDepartmentrevenuesfromfeesforserviceswillincreaseconsistentwiththeprojectedactualrevenuesforFY2016.ItshouldbepointedoutthattheDistrictrecoversonlyaportionoftheactualcostofprovidingengineeringsupportservicesfordeveloperinitiatedprojectsandextensionstotheDistrict'sutilitysystems.TheFY2017EngineeringIncomeisprojectedtobe$65,000,upfrom$50,000fromFY2016.

GeneralFund:RestrictedIncome

RESTRICTEDINCOMEincludesallincomefromvarioussourcesthatarepledgedtofundaspecificnon‐operatingDistrictfunction.Asubstantialportionoftheserevenuesareforthepurposeofoff‐settinglongtermdebtserviceobligationsoftheDistrictandaredirectlyrelatedtoaspecificfeeorcharge.Thisbeingthecase,theserevenuesarepresentedinthebudgetasRestrictedIncome.AvailabilityCharge‐Water revenue is projected tobe $1,711,720,which is an increaseof 11.18%above theFY2016projectionof$1,539,643.Thischarge is leviedonaresidentialequivalentunitbasis and recovers all debt service cost associated with treatment and major transmissioncomponents of the water system in addition to funding a portion of the Capital Repair andReplacementProgram.

Availability Charge‐Sewer is forecasted at $1,734,020, which is $320,221more than the FY2016estimate.ThisfeepaysforalldebtassociatedwiththetreatmentandinterceptorcomponentsofthewastewatersysteminadditiontofundingaportionoftheCapitalRepairandReplacementProgram.




Interest Income 24,000 24,000 ‐ 0.00%

Discounts Earned 1,800 2,000 200 11.11%

Finance Charge 600 600 ‐ 0.00%

Credit Card Fees 20,000 20,000 ‐ 0.00%

Credit Card Charges (45,000) (60,000) (15,000) 33.33%

Miscellaneous Income 18,000 45,000 27,000 150.00%

19,400 31,600 12,200 62.89%



ENGINEERING

Engineering Income 50,000 65,000 15,000 30.00%

44

InterestonRestrictedAccountsisprojectedat$500,whichremainsthesamefromFY2016.

WaterandSewerAssessmentsincomeisprojectedtodecreaseduringFY2017.Assessmentrevenuespayforthedebtservicecostassociatedwithvariousbondsissuedforfinancingwatertransmissionandsewercollectionimprovementswithinexistingcommunities.Theactualincomeearnedinanyoneyearmayvaryduetopenaltiesthatareleviedonlatepaymentsandpropertyownersthatchoosetopaytheirassessmentprincipalinitsentiretyratherthaninequalannualinstallmentpayments.ThecombinedSewerAssessmentrevenueandWaterAssessmentrevenueisexpectedtobe$400,000ascomparedtotheFY2016budgetprojectionof$456,000.MostofthereductionisduetotheendoftheMartinLutherKingassessmentinFY2016.



RESTRICTED INCOME

Availability Charge ‐ Water 1,539,643 1,711,720 172,077 11.18%

Availability Charge ‐ Sewer 1,413,799 1,734,020 320,221 22.65%

Water & Sewer Assessments 456,000 400,000 (56,000) ‐12.28%

Interest Income 500 500 ‐ 0.00%

Demand Charge ‐ Water 81,000 80,000 (1,000) ‐1.23%

Demand Charge ‐ Sewer 81,100 110,000 28,900 35.64%

3,572,042 4,036,240 464,198 13.00%

45

Expenditure Projections

FY2017 expenses are budgeted to be $15,797,240 which is $683,450 higher than FY2016. TheFY2017expensebudgetcontainsacontingencyof$350,000foruseintheeventofrevenueshortfallorcostoverages.

PersonnelServices

ThePERSONNELSERVICESbudgetcategoryisprojectedtototal$5,313,268,anincreaseof$130,075or2.51%ascomparedtotheFY2016personnelservicesbudget.

Inrecentyearspast,fundingforcost‐of‐livingandmeritincreaseshavenotbeenincludedaspartofthepersonnelservicesbudget,butwereabsorbedbycontingencyfundsuponBoardapproval.TheallocationforFY2017SalariesandWages‐Regularof$3,536,440reflectsFY2017COLAandmeritincreasesawardedinJanuary2016aswellaspromotionsearnedbyemployeesduringFY2016.Thetotal allocation represents a 2.17% increase over the FY2016 budget in the Salaries andWagescategory.ItisagainrecommendedthattheBoardcompleteanannualreviewoftheDistrict’ssalariesandwagestodetermineifitisappropriatetoawardcost‐of‐livingand/ormeritsalaryincreasestothe District’s employees. As before, salary adjustments would be funded by a transfer from thecontingencyaccounttotheappropriatepersonnelservicesaccount.

Salaries&WagesOvertimeisprojectedtohaveanincreaseof9.09%fromFY2016to$120,000.ThisisconsistentwithovertimeexperiencedduringFY2016andtakesintoaccountthesalaryincreaseseffectiveJanuary1,2016.Costsherearetraditionallyrelatedtoafter‐hourandweekendscheduledworkdutiesaswellasresponsestoafter‐houremergencyrepairsasneeded.

Personnel Insurance, related to employee health insurance and other fringe benefit coverage,increasedto$747,137ascomparedtothe$708,360appropriatedforFY2016basedonanticipatedincreasesfromtheinsurancecarrier.



PERSONNEL SERVICES

Salaries & Wages ‐ Regular 3,461,172 3,536,440 75,268 2.17%

Salaries & Wages ‐ Overtime 110,000 120,000 10,000 9.09%

FICA Tax Expense 275,241 281,689 6,448 2.34%

Personnel Insurance 708,360 747,137 38,777 5.47%

Retirement 397,852 407,249 9,397 2.36%

Workman's Compensation 77,000 75,000 (2,000) ‐2.60%

Other Payroll Expenses 153,568 145,753 (7,815) ‐5.09%

TOTAL PERSONNEL SERVICES 5,183,193 5,313,268 130,075 2.51%

46

RetirementcontributionsforFY2017arefundedat$407,249,representinganincreaseof$9,397overtheFY2016budgetallocation.ThisexpenseisrelateddirectlytotheincreasesinSalariesandWages‐Regular.

Worker’sCompensationpremiumsareexpectedtodecreaseforFY2017to$75,000astheresultofastable experience rating for FY2017. The South Carolina Division of General Services providesWorker’sCompensationinsurancefortheDistrict.Premiumsarepro‐ratedtoallagencyparticipantsbaseduponprojectedgrosssalariesandclaimsfiled.

BudgetitemOtherPayrollExpensesdecreasedduetodecreasesintheanticipatedcostoftheDistrict’sself‐funded unemployment compensation obligations. As a political subdivision of the state, theDistrictdoesnotpayunemploymentinsurancebutpaysdirectlyforallclaims.

ContractualServices

A total of $3,200,112 is budgeted for CONTRACTUAL SERVICES for FY2017. This represents anincreaseof5.36%,fromtheFY2016budget.

The item account Rents and Leases ‐ Vehicles remains unchanged from FY2016. Although thetransition from leasingofDistrictvehicles to thepurchasingofvehicleshasbeencompleted, thisaccountalsoincludesemployeecarallowances.Staffisbudgeting$6,900tofundthisaccount.

CostsincurredintheaccountitemRentsandLeases ‐OtherEquipment includetherentalofofficeequipment and specialized equipment for construction or maintenance activities. The proposedbudgetamountforthiscategoryis$54,060,whichisa1.12%increasefromtheamountappropriatedforFY2016.

The object account Utilities is budgeted at $1,440,913 for FY2017, representing an increase of$106,753overtheFY2016budget.Therecommendedbudgetis8.00%abovetheFY2016budgeted



CONTRACTUAL SERVICES

Rents & Leases ‐ Vehicles 6,900 6,900 ‐ 0.00%

Rents & Leases ‐ Other Equip. 53,460 54,060 600 1.12%

Utilities 1,334,160 1,440,913 106,753 8.00%

Sewer Service Charges 572,354 651,107 78,753 13.76%

Telephone & Commun. Lines 105,520 100,420 (5,100) ‐4.83%

Insurance ‐ Operations 140,600 140,800 200 0.14%

Professional Services ‐ Legal 15,000 15,000 ‐ 0.00%

Professional Services ‐ Consultan ‐ ‐ ‐ n/a

Professional Services ‐ Other 72,820 75,275 2,455 3.37%

Employee Uniforms 14,760 14,760 ‐ 0.00%

Service & Maint. Contracts 721,678 700,877 (20,801) ‐2.88%

TOTAL CONTRACTUAL SERVICES 3,037,252 3,200,112 162,860 5.36%

47

expenditure.TheincreaseisduetoanticipatedrateincreasesfromSanteeCooperandSanteeElectricCooperative.

Sewer Service Charge expense is expected to increase due to the rate charged by the City ofGeorgetownforcontractservices.Forthisaccount,$651,107isrecommended.AllwholesaleorbulkcontractsewertreatmentserviceprovidedbytheCityofGeorgetownandtheGrandStrandWaterandSewerAuthorityischargedtothisitemaccount.Theanticipatedincreaseis$78,753or13.76%.

TheitemaccountTelephone&CommunicationLinesisexpectedtodecreaseslightlyfromtheFY2016budget. The account “Telephone Communication Lines” includes operating expenses related togeneralofficetelephoneservices,computercommunicationleasedlines,andtheremotelycontrolledtelephonemonitoringsystemslocatedatvariouswellandpumpingstationsites.Staffhasallocated$100,420forthisbudgetitem.

Insurance Operations will increase by only 0.14% from the FY2016 budget. This classificationaccounts for all flood, fire, auto liability, inlandmarine, fidelity, building and personal propertyinsurance premiums paid by the District. The FY2017 amount is for $140,800, representing anincreaseof$200overtheFY2016budget.

The funding recommendation forProfessionalServices–Legal, of $15,000 isunchanged from theFY2016budget.

ProfessionalServices–Consultantshas$0forFY2017,remainingunchangedfromFY2016.

ProfessionalServices–Otherincludesprofessional,financial,andauditservices.ForFY2017,$75,275isbudgeted.

TheallowanceforEmployeeUniformsremainsstableforFY2017to$14,760.Uniformsareprovidedtoallfieldandengineeringemployees.EmployeesareallocatedauniformbudgetfromwhichtheycanpurchaseDistrictapproveduniformsasneeded.

During FY2017, Service andMaintenance Contracts will be funded at $700,877 as compared to$721,678inFY2016.Bio‐solidsdisposalcosts,computersoftwarelicensing,contractmaintenancecosts,janitorialservices,andcontractuallawncarearechargedtothisaccount.

48

SuppliesandMaterials

SUPPLIESANDMATERIALSis$1,299,011,whichisadecreaseof$51,171fromtheFY2016budget.

OperatingSuppliesandMaterials includes small tools that are not capitalized, janitorial supplies,dieselfuelforgeneratorsandbypasspumps,andmiscellaneousmaintenanceandrepairsuppliesandmaterials.ForFY2017,OperatingSuppliesandMaterialsisexpectedtorequire$160,907,anincreaseof$7,569fromtheFY2016budget.

ItisanticipatedthatWaterPurchasedforResalewillincreasesomewhat.Chargedtothisaccountiswholesale or bulkwater purchased fromGrand StrandWater and SewerAuthority. The amountbudgetedforthiscostiteminFY2017is$309,986,upby$8,852,foranincreaseof2.94%.

AutoSupplies are limited to fuelpurchasesonly.Withwildly fluctuating fuelprices, a reasonabletargetforFY2017isdifficult,atbest.Staffhascautiouslyforecastadecreaseof14.70%infuelcostsbased on forecasts, reducing the funding request to $163,690, or $28,210 less than the FY2016budget.

It isexpectedthatPrintingandOfficeSupplieswillrequire$52,804,averyslight increaseof$982fromtheFY2016budget.Fundedherearesuch itemsaspaperproducts,printedmaterials,officesupplies,computersupplies,andengineeringsuppliesandmaterials.

ThebudgetaryrequestforLabTreatmentSuppliesandMaterialswilldecreaseby$40,364forFY2017fromtherevisedFY2016budgetof$651,988.Chargedherearewatertreatmentchemicalssuchaschlorine, ferric chloride, ammonia, potassium permanganate, lime, caustic, and wastewatertreatmentchemicalsusedinthewastewatertreatmentprocess.Inaddition,alllaboratorychemicalsandsuppliesareexpensedtothisaccount.ForFY2017,$611,628isbudgetedforthisitem.



SUPPLIES and MATERIALS

Operating Supplies & Material 153,338 160,907 7,569 4.94%

Water Purchased for Resale 301,134 309,986 8,852 2.94%

Auto Supplies 191,900 163,690 (28,210) ‐14.70%

Printing & Office Supplies 51,822 52,804 982 1.89%

Lab Treatment Supplies & Mat. 651,988 611,624 (40,364) ‐6.19%

TOTAL SUPPLIES and MATERIALS 1,350,182 1,299,011 (51,171) ‐3.79%

49

MaintenanceandRepairs

MAINTENANCEANDREPAIRS,asprojected,willbefundedfor$1,303,269foran8.07%increaseovertheFY2016budget.

TheallocationforbudgetitemMaintenanceandRepair‐BuildingsandGroundsis$68,458,up38.00%,or $18,850, from the FY2016 budget. Included in this category aremiscellaneous repairs to theDistrict’sadministrativeofficesandtherepairstocertainsmallbuildingsthathousewaterandsewerequipment.

ThebudgetitemMaintenanceandRepair‐Facilitiesistheprincipalaccountforwhichmaintenancematerialsareexpensed.Itemstypicallyincludedinthisclassificationarepipelinerepairmaterialsaswellasmaintenanceandrepairitemsneededforapproximately246sewerpumpingstations,622grinderandsteppumpingstations,28wellsand6treatmentplantsoperatedandmaintainedbytheDistrict.Preventativemaintenanceactivitiesinadditiontoroutinerepairsarefundedthroughthisaccount.Staffextensivelyreviewedthedepartmentalrequestsforthisaccountaspartoftheoverallpreventativemaintenanceplanand thecapital repairandreplacementprogram. Items thatweredeemedcapitalrepairsthatextendedtheusefullifeoftheassetwerebudgetedaspartoftheCapitalImprovement Plan (CIP). An increase of $51,725 is allocated for this budget item, for a total of$917,719.

ExpendituresforMaintenanceandRepair‐Equipmentareexpectedtoincreaseby$1,625overtheFY2016budgetforthiscategory.Thisitemaccountallocatescostsfortherepairandmaintenanceofoperationalequipmentsuchas laboratoryequipment,backhoes,trackhoes,andvariouspiecesofmaintenanceandconstructionequipment.Thebudgetis$141,135.

TheobjectaccountMaintenanceandRepair‐VehiclesappropriatesfundingforthemaintenanceoftheDistrict’svehicles.ForFY2017,thebudgetforthiscategoryis$175,957ora16.70%increaseoverFY2016.



MAINTENANCE and REPAIR

Maint & Repair‐Bldgs & Ground 49,608 68,458 18,850 38.00%

Maint & Repair‐Facilities 865,994 917,719 51,725 5.97%

Maint & Repair‐Equipment 139,510 141,135 1,625 1.16%

Maint & Repair‐Vehicles 150,782 175,957 25,175 16.70%

TOTAL MAINTENANCE and REPA 1,205,894 1,303,269 97,375 8.07%

50

BusinessandTravel

TheallocationforthebudgetcategoryBUSINESSANDTRAVELrepresentsanincreaseof$7,548.TravelExpenseincludestraveltostateandnationalconferencesandovernightout‐of‐towntravelforbusinessrelatedactivities.ForFY2017,$30,000isbudgetedwhichisanincreaseof$7,900fromtheFY2016allocation.

PrivateVehicleExpense isprojectedat$5,568 forFY2017.This line itemserves to reimburse theBoardformileageexpensetoandfromDistrict‐relatedmeetingsorevents,andforemployeesthatusepersonalvehiclestoconductDistrictbusinessonlywhenaDistrictvehicleisnotavailablefortheiruse.

PostageandDeliveryisprojectedtodecreaseby5,152or4.06%.Fundingof$121,880isallocatedforthisaccount.

The District has continued to emphasize the need to provide its employees with valuable skillstrainingandeducation.ForFY2017,theEmployeeTrainingbudgetis$692peremployeeor$54,000.Costs here are associated with ongoing professional training, operator certification, and safetytrainingincludingtrainingforhazardousmaterialshandling.

TheallocationforfundingMembershipsandMeetingsis$37,060forFY2017.

BoardMemberCompensationisexpectedtoremainconstant.

ProfessionalBooks/Periodicalsisbudgetedtoincreasefrom$3,950inFY2016to$8,300inFY2017.

The funding amount for Public Information is $11,250, a decrease of $1,000, to provide for theadvertising costs for job postings, and various legal notices required of the District such asadvertisementsforPublicHearings,orthepublicationoftheannualBoardMeetingschedule.



BUSINESS and TRAVEL EXPENSE

Travel Expense 22,100 30,000 7,900 35.75%

Private Vehicle Expense 5,469 5,568 99 1.81%

Postage & Delivery 127,032 121,880 (5,152) ‐4.06%

Employee Training 54,879 54,000 (879) ‐1.60%

Memberships & Meetings 34,920 37,060 2,140 6.13%

Board Member Compensation 10,000 10,000 ‐ 0.00%

Prof. Books & Periodicals 3,950 8,300 4,350 110.13%

Public Information 12,250 11,250 (1,000) ‐8.16%

Miscellaneous Expenses 27,125 27,215 90 0.33%

TOTAL BUSINESS and TRAVEL EX 297,725 305,273 7,548 2.54%

51

MiscellaneousExpenseisusedforthoseexpensesthatdonotreadily“fit”inanotherexpensecategory.Examples include employee Christmas gifts, various employee committee expenses and serviceawards.TheallocationforFY2017is$27,215.

CapitalOutlay

CAPITALOUTLAYisproposedat$727,362.Thisisanincreaseof$511,718comparedtothebudgetforFY2016.PriortoFY2017,mostcapitalequipmentwaspurchasedthroughtheContingencyFundthen repaid from theoperatingbudget (throughAccount 908)over aperiodof years.All capitalreplacement of rolling stock (such as trucks and excavators), computers and furniture is nowbudgetedinCapitalOutlay.

ForBuildingsandFixedEquipment,$2,500isbudgetedforFY2017.

ForAutomotiveEquipment,$270,000isallocatedforFY2017fromtheoperatingbudget.TheDistrictanticipatesspending$200,000toreplacevehiclesand$70,000toreplaceadumptruck.

ThecategoryOperationsandConstructionEquipment,asproposed,istobefundedintheamountof$139,300,whichis$45,700abovetheFY2016budget.Thisobjectitemisacapitalaccountforthepurchaseofnewoperationsandconstructionequipment.

TheobjectitemaccountFurnitureandFixtures isacapitalaccountdesignatedforthepurchaseoffurnitureandfixturesforoperationalfacilitiesandoffices.ForFY2017,$51,625isallocatedforofficefurniture,computerequipmentandreplacementofmeterreaderhandhelds.

ThebudgetitemConstructionMaterialsaccountsforamajorportionoftheplannedexpendituresforthisexpensecategory.ForFY2017,$263,937isbudgetedforanincreaseof133.13%.Expendituresinthisbudgetitemrelatetothepurchaseofconstructionmaterialsfortheinstallationofnewwaterandsewerconnections,installationofwettaps,minorlineextensionsandvalves.Thelargeincreaseistoadjustforactualcosts.



CAPITAL OUTLAY

Land & Land Improvements ‐ ‐ ‐ n/a

Bldg. & Fixed Equipment ‐ 2,500 2,500 n/a

Automotive Equipment ‐ 270,000 270,000 n/a

Operational & Constr. Equip. 93,600 139,300 45,700 48.82%

Furniture & Fixtures 8,830 51,625 42,795 484.65%

Construction Material 113,214 263,937 150,723 133.13%

Professional Services ‐ ‐ ‐ n/a

TOTAL CAPITAL OUTLAY 215,644 727,362 511,718 237.30%

52

MiscellaneousExpense

MISCELLANEOUSEXPENSE isbudgetedat$1,192,740.Thiscost category includes thebudget forContingency,DepreciationandCapitalReplacement,andBadDebts.WiththeexceptionofBadDebts,theseaccountsfundrestrictedcashaccountsheldforavarietyofreasons.

Contingency can be used to compensate for overages in other budgetary areas or shortfalls inrevenue.Thecontingencyaccountisbudgetedat$350,000forFY2017.

DepreciationandCapitalReplacementisabudgetedcashtransfertoarestrictedcashaccountwithabudgetof$50,000forFY2017fromtheOperatingFund.Inaddition,thewaterandseweravailabilityfeeshavebeenincreasedtoprovideanadditional$787,740intransfersforatotalof$837,740infundingforFY2017.ThepurposeoftheaccountistofundcapitalrepairsofthesystemasapprovedintheCapitalImprovementPlan(CIP),aswellasunplannedcapitalrepairsasapprovedbytheBoardofDirectors.ThecostcategoryBadDebtsisfundedat$5,000againforFY2017aswasapprovedforFY2016.

DebtService

DEBTSERVICE is budgeted at $2,456,205, a substantial decrease of $675,086below the FY2016budget.ThereductionofthedebtserviceisprimarilyrelatedtotherefundingofthemajorityoftheDistrict’sUSDAdebtinAugust2015.



MISCELLANEOUS

Contingency 290,000 350,000 60,000 20.69%

Deprec. & Capital Replacement 397,609 837,740 440,131 110.69%

Bad Debts 5,000 5,000 ‐ 0.00%

Miscellaneous Other ‐ ‐ ‐ n/a

TOTAL MISCELLANEOUS 692,609 1,192,740 500,131 72.21%



DEBT SERVICE

Bond & Interest Payments 3,069,081 2,456,205 (612,876) ‐19.97%

Cushion Fund Contributions 62,210 ‐ (62,210) ‐100.00%

TOTAL DEBT SERVICE 3,131,291 2,456,205 (675,086) ‐21.56%

53

Revenue and Expenditure Summaries

54

Summary of Projected Revenues: FY2017 Compared to FY2016



WATER FUND

Water Volume Charge 4,038,000 4,080,000 42,000 1.04%

Water Service Connection 175,000 175,000 ‐ 0.00%

Meter Placement Charge 402 500 98 24.38%

Backflow Inspection Charge 72,000 98,000 26,000 36.11%

Other Operating Reimb. 40,000 60,000 20,000 50.00%

4,325,402 4,413,500 88,098 2.04%



WASTEWATER FUND

Sewer Volume Charge 4,951,346 5,000,000 48,654 0.98%

Sewer Service Connection ‐ 1,000 1,000 n/a

Sewer Tap / Step Unit 40,000 60,000 20,000 50.00%

Sewer Service Inspection 25,000 20,000 (5,000) ‐20.00%

Sewer Reconnect ‐ ‐ ‐ n/a

Other Operating Reimb. 75,000 70,000 (5,000) ‐6.67%

5,091,346 5,151,000 59,654 1.17%



BILLING & COLLECTION

Customer Charge 1,755,000 1,779,900 24,900 1.42%

Service Charge 95,100 115,000 19,900 20.93%

Reconnect Charge 120,000 120,000 ‐ 0.00%

Late Payment Processing 78,000 78,000 ‐ 0.00%

Returned Check Fees 7,500 7,000 (500) ‐6.67%

2,055,600 2,099,900 44,300 2.16%




Interest Income 24,000 24,000 ‐ 0.00%

Discounts Earned 1,800 2,000 200 11.11%

Finance Charge 600 600 ‐ 0.00%

Credit Card Fees 20,000 20,000 ‐ 0.00%

Credit Card Charges (45,000) (60,000) (15,000) 33.33%

Miscellaneous Income 18,000 45,000 27,000 150.00%

19,400 31,600 12,200 62.89%

55

FY2017 Projected Revenues …continued



ENGINEERING

Engineering Income 50,000 65,000 15,000 30.00%

TOTAL OPERATING REVENUES 11,541,748$ 11,761,000$ 219,252$ 1.90%



RESTRICTED INCOME

Availability Charge ‐ Water 1,539,643 1,711,720 172,077 11.18%

Availability Charge ‐ Sewer 1,413,799 1,734,020 320,221 22.65%

Water & Sewer Assessments 456,000 400,000 (56,000) ‐12.28%

Interest Income 500 500 ‐ 0.00%

Demand Charge ‐ Water 81,000 80,000 (1,000) ‐1.23%

Demand Charge ‐ Sewer 81,100 110,000 28,900 35.64%

3,572,042 4,036,240 464,198 13.00%

TOTAL REVENUES 15,113,790$ 15,797,240$ 683,450$ 4.52%

56

Summary of Projected Expenditures: FY2017 Compared to FY2016



PERSONNEL SERVICES

Salaries & Wages ‐ Regular 3,461,172 3,536,440 75,268 2.17%

Salaries & Wages ‐ Overtime 110,000 120,000 10,000 9.09%

FICA Tax Expense 275,241 281,689 6,448 2.34%

Personnel Insurance 708,360 747,137 38,777 5.47%

Retirement 397,852 407,249 9,397 2.36%

Workman's Compensation 77,000 75,000 (2,000) ‐2.60%

Other Payroll Expenses 153,568 145,753 (7,815) ‐5.09%

TOTAL PERSONNEL SERVICES 5,183,193 5,313,268 130,075 2.51%



CONTRACTUAL SERVICES

Rents & Leases ‐ Vehicles 6,900 6,900 ‐ 0.00%

Rents & Leases ‐ Other Equip. 53,460 54,060 600 1.12%

Utilities 1,334,160 1,440,913 106,753 8.00%

Sewer Service Charges 572,354 651,107 78,753 13.76%

Telephone & Commun. Lines 105,520 100,420 (5,100) ‐4.83%

Insurance ‐ Operations 140,600 140,800 200 0.14%

Professional Services ‐ Legal 15,000 15,000 ‐ 0.00%

Professional Services ‐ Consultan ‐ ‐ ‐ n/a

Professional Services ‐ Other 72,820 75,275 2,455 3.37%

Employee Uniforms 14,760 14,760 ‐ 0.00%

Service & Maint. Contracts 721,678 700,877 (20,801) ‐2.88%

TOTAL CONTRACTUAL SERVICES 3,037,252 3,200,112 162,860 5.36%



SUPPLIES and MATERIALS

Operating Supplies & Material 153,338 160,907 7,569 4.94%

Water Purchased for Resale 301,134 309,986 8,852 2.94%

Auto Supplies 191,900 163,690 (28,210) ‐14.70%

Printing & Office Supplies 51,822 52,804 982 1.89%

Lab Treatment Supplies & Mat. 651,988 611,624 (40,364) ‐6.19%

TOTAL SUPPLIES and MATERIALS 1,350,182 1,299,011 (51,171) ‐3.79%

57

FY2017 Expenditures …continued



MAINTENANCE and REPAIR

Maint & Repair‐Bldgs & Ground 49,608 68,458 18,850 38.00%

Maint & Repair‐Facilities 865,994 917,719 51,725 5.97%

Maint & Repair‐Equipment 139,510 141,135 1,625 1.16%

Maint & Repair‐Vehicles 150,782 175,957 25,175 16.70%

TOTAL MAINTENANCE and REPA 1,205,894 1,303,269 97,375 8.07%



BUSINESS and TRAVEL EXPENSE

Travel Expense 22,100 30,000 7,900 35.75%

Private Vehicle Expense 5,469 5,568 99 1.81%

Postage & Delivery 127,032 121,880 (5,152) ‐4.06%

Employee Training 54,879 54,000 (879) ‐1.60%

Memberships & Meetings 34,920 37,060 2,140 6.13%

Board Member Compensation 10,000 10,000 ‐ 0.00%

Prof. Books & Periodicals 3,950 8,300 4,350 110.13%

Public Information 12,250 11,250 (1,000) ‐8.16%

Miscellaneous Expenses 27,125 27,215 90 0.33%

TOTAL BUSINESS and TRAVEL EX 297,725 305,273 7,548 2.54%



CAPITAL OUTLAY

Land & Land Improvements ‐ ‐ ‐ n/a

Bldg. & Fixed Equipment ‐ 2,500 2,500 n/a

Automotive Equipment ‐ 270,000 270,000 n/a

Operational & Constr. Equip. 93,600 139,300 45,700 48.82%

Furniture & Fixtures 8,830 51,625 42,795 484.65%

Construction Material 113,214 263,937 150,723 133.13%

Professional Services ‐ ‐ ‐ n/a

TOTAL CAPITAL OUTLAY 215,644 727,362 511,718 237.30%



MISCELLANEOUS

Contingency 290,000 350,000 60,000 20.69%

Deprec. & Capital Replacement 397,609 837,740 440,131 110.69%

Bad Debts 5,000 5,000 ‐ 0.00%

Miscellaneous Other ‐ ‐ ‐ n/a

TOTAL MISCELLANEOUS 692,609 1,192,740 500,131 72.21%

58

FY2017 Expenditures …continued

TOTAL OPERATING EXPENDITURES 11,982,499$ 13,341,035$ 1,358,536$ 11.34%



DEBT SERVICE

Bond & Interest Payments 3,069,081 2,456,205 (612,876) ‐19.97%

Cushion Fund Contributions 62,210 ‐ (62,210) ‐100.00%

TOTAL DEBT SERVICE 3,131,291 2,456,205 (675,086) ‐21.56%

TOTAL EXPENDITURES 15,113,790$ 15,797,240$ 683,450$ 4.52%

59

Debt Service Schedules

60

Long-Term Debt

TheDistrictbegantheprocessofrefundingthemajorityofit’sdebtheldbytheU.S.DepartmentofAgricultureinJune2015.InJuly2015,theDistrictcompletedthepreliminaryofferingstatementandwasratedA1byMoody’sInvestorServices.TheDistrictissued$21,050,000onAugust26,2015intheformoftheSeries2015WaterandSewerRevenueRefundingBondstoareceptivemarket.Thebondsrefundedhadaninterestraterangeof6.50%to2.125%withtermsofupto40years.The2015RefundingBondwasissuedwithinterestratesranging5.00%to2.00%withtermsofupto18years.TheDistrictanticipatessaving$200,000peryearindebtserviceintheshorttermandover$4,000,000overthetermonthe2015SeriesBond.

ThefollowingchartistheannualdebtserviceoverthenexttenyearsfortheDistrict’soutstandingbonds,notincludingcontractuallyobligated“debtservice”relatedtotheRegionalWastewaterTreatmentPlantagreementwiththeCityofGeorgetown.

TOTAL DEBT

FY Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest SERVICE

June‐17 178,526 73,538 98,116 41,195 250,000 90,954 70,266 79,818 800,000 718,569 2,400,982

June‐18 182,576 69,487 100,342 38,969 255,000 83,879 71,774 78,310 835,000 686,569 2,401,906

June‐19 186,719 65,344 102,619 36,692 265,000 76,865 73,314 76,770 865,000 653,169 2,401,492

June‐20 190,956 61,107 104,948 34,363 275,000 69,471 74,887 75,197 835,000 609,919 2,330,848

June‐21 195,289 56,774 107,329 31,982 285,000 61,799 76,494 73,590 760,000 576,519 2,224,776

June‐22 199,720 52,343 109,764 29,547 295,000 53,847 78,135 71,949 800,000 538,519 2,228,824

June‐23 204,252 47,812 112,255 27,056 305,000 45,617 79,812 70,272 860,000 514,519 2,266,595

June‐24 208,886 43,177 114,802 24,509 315,000 37,107 81,525 68,559 1,075,000 488,719 2,457,284

June‐25 213,626 38,437 117,407 21,904 325,000 28,319 83,274 66,810 1,105,000 456,469 2,456,246

June‐26 218,473 33,590 120,071 19,240 340,000 19,251 85,061 65,023 1,135,000 420,556 2,456,265

June‐27 223,431 28,633 122,796 16,515 350,000 9,765 86,886 63,198 1,180,000 375,156 2,456,380

June‐28 228,500 23,563 125,582 13,729 88,750 61,334 1,590,000 327,956 2,459,414

SRF 2011A SRF 2011B BB&T 2012A Refunding 2015AUSDA 2012B

61

Capital Improvements Budget

FY2017

Throughouttheyears,theDistricthasrespondedtocommunitiesinneedofwaterandwastewaterservicesthroughoutGeorgetownCounty.Inexistingcommunities,theDistricthasobtainedstateandfederalgrantand/orlowinterestloanmoniestofullyfundsystemdevelopmentorfinanceresidentialsystemsthroughassessmentloans.MillionsofdollarsinwaterandwastewaterassetshavebeenconveyedtotheDistrictandintegratedintothesystemsasdevelopmentflourished,particularlyontheWaccamawNeck.

FortherelativelyshorttimethattheDistricthasbeeninexistence,thefocushasrested,largely,uponsystemgrowth.Asthesystemhasaged,theneedforemergencyandproactiverepairshasincreased.TheDistrictwillcontinuetoseekfundingtobringneededservicestotheareasoftheCountyneededwaterandsewerservices.However,theDistrictrecognizestheneedtomaintaintheexistingsystemtocontinuethelevelofserviceexpectedbyourcustomers.Districtstaffhastakenactiontoconfrontthisissueaggressively,ratherthanallowpossibleproblemareastobecomeenvironmentalorfiscalemergencies.Acomprehensiveassetmanagementplanisinthefinalstagesofcompletion.Thiswillincludecreatingprocessestoevaluatetheconditionofvariousassets,therebyallowingformoreinformedprioritizationandforecastingofcapitalneeds.

Staffhasprepared theFY2017Capital Improvementsbudgetwithcare.TheBoardhasapprovedfunding as indicated in the following summary forFY2017,while considering the5‐YearCapitalImprovementsPlanasalivedocument,forguidanceandplanningpurposes.

62

FY2017 Capital Projects – Budget Requests

WaterMainRehabProjectsThe FY2017 waterline rehab projects consists of 3 separate projects. First, the installation ofapproximately1800 feetof6”pvcwater lineonSouthWaccamawDrive inGardenCity thatwillreplacetheexisting2”galvanizedwaterline.Second,theinstallationofapproximately1,000feetof2”pvcwater lineonSeaviewLoop inNorthLitchfield thatwill replace theexisting2”galvanizedwaterline.Third,theinstallationofapproximately800feetof2”pvcwaterlineonShorebirdLoopinNorthLitchfieldthatwillreplacetheexisting2”galvanizedwaterline.Theestimatedcostofthesethreeprojectsis$350,000.

MurrellsInletTrunkLineTheMurrellsInlettrunklinewillconsistofapproximately15,500feetof12”watermain.ThetrunklinewillprovidebetterpressuresandflowsfortheMurrellsInletservicearea.WiththemajorityofourCountygrowthinthisareathedemandisconstantlyincreasing.Currentlythereisone12”linesupplyingallofthewatertoMurrellsInlet.IfthislineweretobreakthenewtrunklinecouldsupplywatertotheMurrellsInletareaasaredundantsource.Theestimatedcostofthisprojectis$900,000.

SewerMainRehabProjectsTheFY2017sewerrehabprojectsconsistof2majorgravitysewerrepairsandpipeliningusingCIPP.ThefirstmajorrepairwillbereplacingthetwogravitysewerlinesthatflowintoapumpstationonPawleysIsland.ThesecondmajorrepairwillbereplacingthegravitylinethatflowsintothepumpstationneartheBrownsFerrySchool.Theliningprojectswillrestorestructuretopipesthathavenotfailedbutarecompromised.Thelocationsaredeterminedbyrankingthepipe’scondition,whichis based on our TV crew’s assessment when inspecting. The estimated cost of these projects is$700,000.

FireHydrantReplacementTheprojectwillprovideforthereplacementofapproximately10hydrantsthatarenotrepairableand indesperateneedof replacing. Staffwill continue toevaluate thehydrantsand recommendreplacementeveryyearasneeded.Theestimatedcostofthisprojectis$50,000tobefundedthroughtheCapitalRepairandReplacementFund.

McDonaldSchoolPumpStationForceMainUpgradeTheprojectwillprovideforaforcemainfromtheMcDonaldSchoolPumpStationtotheexisting20‐inchforcemainthatpumpstotheCity’splant.Thisforcemainisneededbecauseoftheincreasedflowintothepumpstation.Theforcemainisbeingdesignednowandpermittingwillbeinplacebynextfiscalyear.Theestimatedcostforthisprojectis$900,000tobefundedbysewerimpactfees.

PowellAndVillageRoadWaterLineImprovementsThehomeownersonPowellandVillageRoadpetitionedtheDistrictforwaterservice.Theprojectwould extend off our existing system in Sampit. The new system would serve 58 new watercustomersonPowellRoad,VillageRoad,WalkerRoad,SargentCourt,StanleyCourt,andSeleanerDrive.Theprojectwillconsistof17,900LF(linearfeet)oftwo(2),eight(8),andten(10)inchwaterdistributionmain.TheprojectwillbecompletedwithfundsfromaCommunityDevelopmentBlockGrant.Theestimatedprojectcostis$560,873.

63

PawleysIslandWastewaterTreatmentPlantThelaunderringsonthesecondaryclarifiersareinneed of coating. The cost of rehabilitation is$140,000or$35,000peryearfor4years.

SampitTankAltitudeValveTheKilsockWaterDistributionsystemconsistsoffourelevatedHighTanks.Currently,SampitHighTankoperateswithoutanAltitudeValve.AnAltitudevalvecontrolstheflowintooroutofatank,whichoperatesinvariationsofsupply or demand in the Kilsock System. The estimate project cost is$20,000.

ASRandWellRehabilitationWater Operations operates a total of 4 ASR wells and 17 groundwater wells. ASR and WellRehabilitationrestoresitsmostefficientconditionbyvarioustreatmentsorreconstructionmethods.ASRandWellRehabilitationsignificantlyreducepooranddeterioratingoutputperformanceduetowell design, construction, and environmental factors. The estimate rehabilitation project cost is$70,000.

PawleysIslandWWTPReceivingStationWastewater Operations determined that theexisting facility for receiving Trucked LiquidWastearenotsufficienttomeetcurrentneedsandinterferewiththeproperfunctioningofthewastewatersystem.ThePawleysIslandWWTPreceiving station will replace the existingfacility as the primary receiving station forTrucked Liquid Waste, eliminating systeminterference while increasing receivingcapacity. The estimated project cost is$100,000.

64

ClarifierDriveandGritReplacementThenewclarifierdriveandgritunitservesasathemechanicalcoreofthePawleysIslandwastewatertreatmentplantclarifierthatproduceslowspeedandhightorquerotationofthesludgecollectorarmstopermitpositivesludgecollectionandremoval forproperunitoperation. Replacementofclarifierdriveandgritunitprovidesreliabilityforlonglastingtroublefreeoperation.Theestimatereplacementcostis$90,000.

AirLineReplacementandRepair–PawleysIslandWWTPThewastewater treatment plant uses air to treat thewastewater throughout thePawleys IslandWWTP. There aremany air leaks between the blower building and the aeration chambers. Thisprojectwillrepairthenecessaryairleakstoimproveoperationsandenergyefficiencies.Thissystemisoriginaltotheplantsince1989.Theestimatedreplacementandrepaircostis$25,000.

WaccamawNeckWaterTreatmentPlantUpgradesTwo of the eight large verticalturbine pumps are scheduled to beremoved and rebuilt. This is aproactive approach to help avoid apumpfailureofthesecriticalassets.The estimated cost of the pumprehabilitations is $40,000 to befunded by Capital Repair andReplacementFunds.TankMixersThe Water Operations Departmentplans to install an active water

storagetankmixingsystemwiththegoalof improvingwaterqualityandasatoolofmeetingtheever‐tightening Safe Drinking Water Regulations. The active mixing improves water quality bypreventingthermalstratification,whichhelpstomaintainachlorineresidual,reducestheformationofdisinfectionby‐products(DBP’s),andinhibitsnitrification,afoodsourceforbacteriaifpresent.Theestimatedcostis$25,000tobefundedbywaterimpactfees.PumpStationRehabilitationandPanelReplacementAs part of the Management Operations and Maintenance Program (MOM), the maintenancedepartmentwillcontinuewithcompletemechanicalrehabilitationofnecessarypumpstationsandpanelreplacementforourWastewaterCollectionTransmissionSystem(WCTS).Alloftheinternalpiping,valves,pumpbases,guiderails,etc.willbereplaced.Thecostofthiseffortisexpectedtobe$690,000tobefundedbytheCapitalRepairandReplacementfund.

65

PawleysIsland/MurrellsInletWastewaterTreatmentPlant‐MaintenanceProjectsAspartoftheDistrict’sassetmaintenanceplan,twooftheteneffluentwastewaterpumpsinuseatbothfacilitiesarescheduledtoberebuilt.Thetotalcostofthetwopumprehabilitationsisestimatedtobe$40,000.

ContinuingAssetMaintenanceProgramsTheMaintenanceDepartmentrequestsatotalof$108,000tocontinuetheeffort,begunseveralyearsago, in the rehabilitation of manholes and wet wells throughout the sewer collection system.Providedgreaterneedisnotdiscovered,theMaintenanceDepartmenthasidentified10manholesand5wetwellsfortheprograminFY20167tobefundedwithCapitalRepairandReplacementfunds.

66

FY2017 Funding Sources – Water System

FY2017 Funding Sources – Wastewater System

FY2017Capital Good

Neighbor

Hydrant

& Meter

Replace.

Repairs ‐

Water

Treatment

Water

Main

Rehab

Sampit

Tank

Altitude

Valve

Murrells

Inlet Trunk

Line

Sampit

Water

Project

Tank

Mixers

ASR & Well

RehabTOTALS

Construction 40,000$ ‐$ ‐$ 350,000$ ‐$ 900,000$ 584,000$ ‐$ ‐$ 1,874,000$

Engineering ‐

Equipment 58,000 125,000 20,000 ‐ 203,000

Maintenance 25,000 70,000 95,000

TOTAL 40,000$ 58,000$ 125,000$ 350,000$ 20,000$ 900,000$ 584,000$ 25,000$ 70,000$ 2,172,000$

Water Impact Fees ‐$ ‐$ 40,000$ ‐$ ‐$ 900,000$ ‐$ 25,000$ ‐$ 965,000$

DECAP Fund 58,000 85,000 350,000 20,000 70,000 583,000

SRF Loan ‐

USDA Loan ‐

Other Grants 20,000 584,000 604,000

Pay As You Go 20,000 20,000

TOTAL 40,000$ 58,000$ 125,000$ 350,000$ 20,000$ 900,000$ 584,000$ 25,000$ 70,000$ 2,172,000$

SOURCE OF FUNDING

EXPENDITURES

FY2017 Sewer

Main

Rehab

Wetwell

&

Manhole

Rehab

McDonald

School PS

Force Main

Receiving

Station ‐

PI WWTP

PS Rehab

& Panel

Replace

Clarifier Dr

& Grit

Replace. PI

WWTP

Launder

Ring

Coating PI

WWTP

Effluent

Pumps PI

WWTP

Air Line

Replace.

PI WWTP

TOTALS

Construction ‐$ ‐$ 900,000$ 100,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 1,000,000$

Engineering ‐

Equipment ‐

Maintenance 700,000 108,000 90,000 90,000 35,000 40,000 25,000 1,088,000

TOTAL 700,000$ 108,000$ 900,000$ 100,000$ 90,000$ 90,000$ 35,000$ 40,000$ 25,000$ 2,088,000$

Impact Fees ‐$ ‐$ 900,000$ 100,000$ ‐$ ‐$ ‐$ ‐$ ‐$ 1,000,000$

DECAP Fund 700,000 108,000 90,000 90,000 35,000 40,000 25,000 1,088,000

Other Grants ‐

Pay As You Go ‐

TOTAL 700,000$ 108,000$ 900,000$ 100,000$ 90,000$ 90,000$ 35,000$ 40,000$ 25,000$ 2,088,000$

SOURCE OF FUNDING

EXPENDITURES

67

5-Year Capital Improvements Program

68

CIP FY2017- FY2021: Plan Summary by System Component

CIP FY2017 - FY2021: Source of Funds Summary

69

CIP FY2017 - FY2021: Capital Equipment Purchases

70

CIP FY2017 - FY2021: Water Distribution Capital Projects

71

CIP FY2017 - FY2021: Water Treatment and Storage Capital Projects

72

CIP FY2017 – FY2021: Wastewater Collection Capital Projects

73

CIP FY2017 – FY2021: Wastewater Treatment Capital Projects

74

CIP FY2017 – FY2021: Capital Repair and Replacement Fund

75

CIP FY2017 – FY2021: Account 908 Contingency Fund

76

CIP FY2017 – FY2021: Water Impact Fees

77

CIP FY2017– FY2021: Sewer Impact Fees

operating and capital improvements budget · 2020-01-08 · employee recognition the 2016 office...

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