RESOLUTION NO. iS'CQ-1 U>

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE KEY

LARGO WASTEWATER TREATMENT DISTRICT, LOCATED INMONROE COUNTY, FLORIDA, ADOPTING THE BUDGET FOR THEFISCAL YEAR ENDING SEPTEMBER 30, 2017 FOR THE DISTRICT;PROVIDING FOR THE GENERAL MANAGER TO EXPEND FUNDS ON

BEHALF OF THE DISTRICT; AND PROVIDING FOR APPLICABILITYAND AN EFFECTIVE DATE.

WHEREAS, pursuant to the Key Largo Wastewater Treatment District Act (Oh.2002-337, Laws of Florida, as amended) (the "Act"), the business and affairs of the KeyLargo Wastewater Treatment District (the "District") are conducted and administered byits five-member Board of Commissioners (the "Board"); and

WHEREAS, the Board has those administrative duties set forth in the Act and inchapter 189. Florida Statutes, as the both may from time to time be amended; and

WHEREAS, pursuant to the Act and section 189.418(3), Florida Statutes, theBoard has the power and the duty to adopt a budget by resolution each fiscal year.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OFCOMMISSIONERS OF THE KEY LARGO WASTEWATER TREATMENT DISTRICT

THAT:

Section 1. ADOPTION OF THE BUDGET AND AUTHORIZATION TO EXPEND

FUNDS.

(A) The District Utility System Budget for the Fiscal Year ending September30, 2017, attached hereto as Exhibit "A" is incorporated herein and is hereby adopted.

(B) Subject to the limitation in Section 1(G), below, the General Manager ishereby authorized to expend funds of the District for official purposes of the operation,maintenance, billing, customer services, construction, debt service payment, capitalimprovements and other business activities of the District in accordance with theadopted Budget.

(C) No contract or other commitment of funds, written or oral, shall be enteredinto without the certification of the Chief Financial Officer that such contract or other

commitment of funds is in the budget and that sufficient cash to meet the contractual orother commitment of funds will be available within the time allowed for payment underthe Florida Prompt Payment Act. When such certification is made, the Chief FinancialOfficer shall record this action in the financial records of the District so as to encumber

those funds and prevent them from being used for other expenditures prior to thecompletion of the commitment for which the funds were approved. The Chief FinancialOfficer may adjust the actual restricted amount as he or she determines that such achange is warranted due to the activities related to the commitment.

(D) The amounts shown within the budget are established as a target level foreach specific type of revenue or expenditure indicated. Recognizing that the items listedin the Budget may actually be higher or lower than those estimates, the Chief FinancialOfficer is authorized to reallocate the adopted Budget within each category. Allocationof funds from one category to another is prohibited. Only the Board is authorized toincrease the budgeted amounts for a category.

(E) The General Manager is authorized to spend funds not in the Budget inthe event of an emergency related to the KLWTD Utility System, which the GeneralManager reasonably believes may result in: danger or injury to persons; damage toassets of the District; or the inability of the district to provide wastewater services. Assoon as possible thereafter, the General Manager or Chief Financial Officer shall reportto the Chairman of the Board any such actions taken or to be taken in suchcircumstances. However, such communication shall occur no later than 24 hours aftersuch actions or events.

(F) The Chief Financial Officer shall notify the Board when he or shedetermines that the actual revenues of the utility system are likely to be less than thoseindicated in the adopted Budget and shall also prepare a proposed revised Budget forthe Board's review and consideration.

(G) Pursuant to Resolution 01-01-05, any disbursement in excess of $10,000,other than emergency contracts as provided in Sections 1(E) of this Resolution, must beapproved by the Board prior to entering into such a contract.

(H) Pursuant to Resolution 01-01-05, except for emergency expendituresunder Section 1(E), above, any work order equal to or in excess of $10,000 for aprofessional services contract previously approved by the Board, must be approved bythe Board prior to accepting such a work order. Those work orders less than $10,000for such contracts do not require prior Board approval but will be presented to the Boardfor ratification.

(!) The Board authorizes the General Manager and the Chief FinancialOfficer to do all acts and things required of them by this Resolution and the Budget forthe full, punctual, and complete performance thereof, and the Chairman and eachmember of the Board, officers, attorneys, and other agents of the District are herebyauthorized and directed to execute and deliver any and all papers and instruments andto do and cause to be done all acts and things necessary or proper for carrying out theBudget and transactions contemplated by this Resolution, or Florida Statues.

(J) In the absence of a Chief Financial Officer, the Board may appoint anindividual or entity to act on behalf of the Chief Financial Officer and, in such case, allduties and responsibilities listed above of the Chief Financial Officer shall inherentlybecome the duties of that individual or entity.

Section 2. APPLICABILITY AND EFFECTIVE DATE.

This resolution shall take effect upon adoption by the Board of Commissioners.

INTENTIONALLY LEFT BLANK

RESOLVED AND ADOPTED this _L2_ of 2016.

The foregoing RESOLUTION was offered by (bl'vV^VoS ,who moved its approval.The motion was seconded by . and being put to a vote the result was asfollows: ^

AYE

Chairman David Asdourian

Commissioner Norman HigginsCommissioner Steve Gibbs ✓

Commissioner Andrew Tobin ✓

Commissioner Robert Majeska

NAY

The Chairman thereupon declared Resolution No. 16-0^-duly passed and adopted theday of 2016

KEYL OWASI ER TREATMENT DISTRICT

David Asdourian

fn and legal sufficiency:

Clerk, Katherine Jackson General Counsel, Ray Giglio

 

   

Key Largo Wastewater Treatment District       

          

          FY16‐17 BUDGET 

Dennis M. Bishop, CPA (Ret.) Peter L. Rosasco, CPA Donna M. Hoffman, CPA

September 6, 2016

Bishop, Rosasco & Co. Certified Public Accountants

Rita A. Couch, CPA Daniel E. Deighton, CPA Linda K. Johnson, CPA

Honorable Chairman, Members of the Board of Commissioners, and Citizens of Key Largo

We have read and examined the fiscal year 2016-2017 Budget of the Key Largo Wastewater Treatment District and find it to be based upon reasonable assumptions and in compliance with sound business practices.

We have consulted with staff throughout the budget preparation process and recommend adoption by Board.

Respectively,

/??T £/2(cP* Peter L. Rosasco, CPA , ~'

25000 Overseas Hwy P.O. Box 42-1075 Summerland Key, FL 33042 (305)745-4077 (305)745-4078 Fax

8085 Overseas Hwy Marathon, FL 33050

(305)743-6586 (305)743-0726 Fax

Honorable Chairman,

Key Largo Wastewater Treatment District 103355 Overseas Highway, Key Largo, FL 33037

Post Office Box 491, Key Largo, FL 33037 Phone (305) 451-4019 • www.klwtd.com

Members of the Board of Commissioners, and

Citizens of Key Largo

September 6, 2016

Presented for your consideration is the proposed budget for the Key Largo Wastewater Treatment District

for the fiscal year beginning on October 1, 2016 and ending on September 30, 2017. This budget is the

product of Commissioners' guidance, recommendations of the General Manager and your professional

staff.

This budget document serves as the organization's operational roadmap for the coming fiscal year. We

have developed the operational and capital budgets to provide services meeting or exceeding all State

regulations and Bond Order covenants with which the District must comply while giving due consideration

to the impact to the ratepayers of the District.

This budget was developed toward achieving three primary objectives: offer a financial plan that maintains the District's commitment to providing efficient and effective services; ensure long-term financial integrity; and remain rate sensitive. The annual budget is not the product of individual effort; rather it represents the

collective effort of staff to deliver a reasonable financial and operating plan. On behalf of the District, I want

to take this opportunity to acknowledge and thank each department for their contribution to the process.

Additionally, I want to acknowledge the efforts and guidance of Bishop, Rosasco and Company for their

oversight and counsel throughout the process.

I look forward to working with the Board, staff and our ratepayers as we implement this financial plan and

policy document in the upcoming year.

Respectfully Submitted,

General Manager

1

Key Largo Wastewater Treatment District

Fiscal Year 2016/2017 Budget Narrative

Sewer Utility Fund

The Key Largo Wastewater Treatment District (“District”) was formed as an autonomous independent Special District and political body formed in 2002 by the Legislature of the State of Florida by House Bill 471, enacted as Chapter 2002-37, Laws of Florida, for the purpose of carrying out the planning, acquisition, development, operation, and management of a wastewater management system within the District’s boundaries in Key Largo, Monroe County, Florida.

The District operates and maintains a sewer utility from mile marker 91 to 106 and on the southern portions of C-905 in North Key Largo and provides services to approximately 9,427 sewer accounts, representing 14,253 EDUs. Operating as an enterprise fund, customer charges and assessments pay for the cost of operations and maintenance, debt service, and administrative costs.

Fund Overview

The District is structured on the basis of one individual enterprise fund. An enterprise fund is established by a government to account for activities similar to private business operations. The intent is that user charges make up for the costs of providing goods or services to the public. Enterprise funds use the accrual basis of accounting. Under this method of accounting revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of when the cash is received or paid. Also, all assets and liabilities associated with the entity are included on the balance sheet. Generally, accepted accounting principles applicable to enterprise funds are similar to those applicable in the private sector.

Budget Development

The annual budget is considered one of the most important documents adopted by the District’s Board of Commissioners each year. The budget reflects the District’s financial policies for the upcoming year by allocating the sources of funds for District services, and projecting expenditures for those services.

The District is focused on improvements that will continue to supply high quality service to our customers. Staff will continue to focus on the collection and disposal of wastewater in the most effective and efficient methods available. External funding sources, including grants, will continue to be aggressively sought.

2

Revenue Overview

The FY16-17 projected revenues and other sources of the District are as follows:

FY 2016-17Budget % of Total

FY 2015-16Budget % of Total

Wastewater Service Revenue 8,550,000$ 53.45% 8,550,000$ 44.40%Non Ad Valorem Assessments 4,010,190 25.07% 4,082,244 21.20%Cash on Hand 1,574,288 9.84% 3,275,601 17.01%Monroe County ILA 1,000,000 6.25% 1,000,000 5.19%Islamorada ILA Revenue 642,207 4.01% 877,110 4.56%SDC Prepayments 168,000 1.05% 175,000 0.91%Interest Income 30,000 0.19% 17,500 0.09%Islamorada ILA - Allocation of Capital Projects 21,146 0.13% 777,548 4.04%DEP Grant Income (1)(2) - 0.00% - 0.00%ACOE Grant Income - 0.00% 500,000 2.60%

15,995,831$ 100% 19,255,003$ 100%

(1) The District needs $17,485,422 to complete the unfunded capital projects noted on page 3. (2) For comparative purposes the FY16 budgeted DEP grant income of $11,917,861 was removed

Wastewater Service Revenue

Non Ad Valorem Assessments

Cash on Hand

Monroe County ILA

Islamorada ILA Revenue

SDC Prepayments

Interest Income

Islamorada ILA - Allocation of Capital Projects

Where the Money Comes From

3

Wastewater Service Revenue ($8,550,000)

Consisting of 53.13% of the District’s revenues, charges for wastewater services represent the largest source of budgeted revenues for the District. This revenue is derived by providing sewer collection and treatment services to the public. Users are charged for this service on their monthly water bill from the Florida Keys Aqueduct Authority (“FKAA”). Customers are charged a base service charge and a usage charge, which is based on their monthly water consumption. There are currently 14,253 EDUs being billed which equates to the following breakdown of base charge vs. flow charge revenues.

Annual Revenue from Base Charges 5,746,810$ Annual Revenue from Flow Charges 2,803,190

Total 8,550,000$

Currently, a portion of the wastewater service revenue is utilized to pay a share of the annual debt service of the District. This equates to approximately $99.35 per EDU per year.

Required Annual Debt Service 5,594,248$ Less: Assessment Revenue 4,010,189

Less: Early Payoff System Development Charges 168,000 Annual Debt Service Covered by Rates 1,416,059$

Non Ad Valorem Assessments ($4,010,189)

Non ad valorem assessments revenue is the annual assessments of system development charges to customers for providing the sewer infrastructure. Initially, assessments were levied in phases and customers were given the option to prepay the assessment in full, or to have the assessment spread over 20 years as a non ad valorem assessment on their tax bill from Monroe County. This revenue stream is the annual amount the District receives from the Monroe County Tax Collector’s Office. The assessment charge is calculated on the number of equivalent dwelling units (“EDU”) for the serviced parcel. An EDU represents the equivalent to a single family unit and is based on 167 gallons per day of potable water usage.

Grant Income ($0)

Due to the uncertainty of the political environment staff finds it prudent not to budget any grant revenues for FY17. However, funding is needed to complete the following unfunded capital projects.

Unfunded Capital Projects Reclaimed Water Project 9,100,000$ Vacuum Pit Monitoring System 6,900,000 Fully Enclosed Headworks 500,000 Upgrade Grit Removal System 450,000 Disinfection Chamber Enclosure 364,441 SBR & Post EQ: 4 (3ft) concrete walkways 95,543 Monorail Plant 75,438

17,485,422$

4

Monroe County ILA ($1,000,000)

During FY14/15, the District successfully negotiated an interlocal agreement with Monroe County to exchange the $17,000,000 of Stan Mayfield funding that the State allocated to the District in FY13/14, in return for annual payments from the County of funds that have an unrestricted use.

Stan Mayfield funding exchange 17,000,000$ FY16 payment from Monroe County (1,000,000) Stewardship Bill funding exchange 1,500,000

Balance due from Monroe County 17,500,000$

System Development Charge Advance Payoff Revenue ($168,000)

Customers have the option to pay off their system development charge at any time. Although substantially all of the serviced parcels have been assessed, customers may choose to either pay down or pay off their assessment in advance. This figure includes the anticipation of $60,000 in rebates due to the Commercial Low Flow Program.

Interest Income ($30,000)

The District is projected to earn $30,000 in interest earnings in FY16/17 from its interest bearing accounts. This 71% increase is the result of banking changes the District completed during fiscal year 2016.

Cash on Hand ($1,574,288)

The District projects that $1,574,288 of cash reserves are needed to balance the FY16/17 budget. The FY16/17 budget includes appropriations of $2,212,410 for non required advanced debt service principal payments. Below is a graph of the District’s cash and cash equivalents on hand at September 30th of each year.

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

2010 2011 2012 2013 2014 2015

5

Islamorada Revenues

Islamorada Wastewater Service Revenue ($571,457)

The District and Islamorada, Village of Islands (“Village”) have an interlocal agreement for the use of 32% of the District’s plant capacity. The Village is charged a base rate of $4.65 per 1,000 gallon of influent, not including any rate surcharges, at the District’s advanced wastewater treatment plant. That rate is calculated at $4.30 for treatment cost and $0.35 for repair and replacement funding. The District began receiving flows from the Village on June 16, 2014.

Islamorada Insurance Surcharge Revenue ($70,750)

The Interlocal agreement with the Village requires them to pay 32% of the insurance expense for the advanced treatment plant. The District invoices the Village annually for this surcharge.

Islamorada Portion of Capital Projects ($21,146)

As the District continues to make required changes to the plant to accommodate for the increased flows from the Village, a portion of the capital cost associated with these changes are paid by the Village according to the interlocal agreement. For FY16/17 Islamorada’s share of the plant, capital outlay projects that are, being budgeted are the competition of the blower upgrade project, and the completion of the chemical feed system upgrade.

FY16-17

ConstructionBudgeted Project

Expenditures Village Engineering and Other Soft Costs 76,887 5,434 Chemical Feed Systems Upgrade 10,000 3,200 Upgrade Blowers 39,100 12,512 Chlorine Contact Basin Covers 48,750 - New Service Connections 165,000 - Retention Area Project 242,260 - Process Water System Upgrade/Replacement 140,000 -

Headworks Bypass Piping & Coating Rehab 177,092 -

899,089 21,146 These projects, while budgeted, are still subject to board approval

6

Expenditure Overview

The total projected appropriations of this budget are $16,269,982. The following chart shows a summary of the budgeted appropriations by category:

FY 2016-17Budget % of Total

FY 2015-16Budget % of Total

Personnel Services 2,900,887$ 18.14% 2,822,595$ 14.66%Operating Expenses 3,610,685 22.57% 3,697,019 19.20%Capital Outlay (1) 1,187,089 7.42% 3,021,141 15.69%Transfers 490,513 3.07% 820,000 4.26%Debt Service 7,806,657 48.80% 8,894,248 46.19%

15,995,831$ 100% 19,255,003$ 100%

(1) For comparative purposes the F Y16 unfunded projects of $11,917,861 was removed from capital outlay

Personnel Services

Operating Expenses

Capital Outlay

Transfers

Debt Service

Where the Money Goes

Personnel Services ($2,900,887)

Personnel Services includes all salaries and benefits for District employees. This represents a $78,293 increase from the FY15/16 budgeted amount.

Department FY16-17

FTEFY16-17Budget

FY15-16FTE

FY15-16Budget

Commissioners NA 83,055$ NA 82,237$ Administrative 15 1,178,727 14.3 1,108,514 Plant 7 377,015 6.8 453,412 Field 14 928,351 14.8 1,019,459 Maintenance 5 333,739 0 - Construction 0 - 2.1 158,972 Total 41 2,900,887$ 38 2,822,594$

7

Operating Expenses ($3,610,688)

Operating expenditures increased by $82,639 or approximately 2%. FY16/17 will be the seventh year of full operations affording staff with more accurate historical operating data, which was used to project their future needs.

Capital Outlay ($1,187,089)

The FY16/17 budget includes $1,187,089 for capital outlay. The following chart provides the details on the specific capital outlay items being requested by staff.

Capital Outlay ItemsAdministration Computer Equipment 8,000$

8,000$ Plant Security Equipment 65,000 Vehicle (1) 26,000

91,000 Field Security Equipment 75,000 Vehicle (3) 66,000

141,000 Maintenance Vehicle (2) 48,000

48,000

Construction Unfunded Active Engineering and Other Soft Costs 76,887 Chemical Feed Systems Upgrade 10,000 Upgrade Blowers 39,100 Chlorine Contact Basin Covers 48,750 New Service Connections 165,000 Retention Area Project 242,260 Process Water System Upgrade/Replacement Project 140,000 Headworks Bypass Piping & Coating Rehab 177,092 Reclaimed Water Project 9,100,000 - Vacuum Pit Monitoring System 6,900,000 - Grit Removal System Upgrade 450,000 - Fully Enclosed Headworks 500,000 - Monorail Plant 75,438 - Disinfection Chamber Enclosure 364,441 - SBR & Post EQ: 4 (3 ft) concrete walkways 95,543 -

17,485,422 899,089 Total Active Capital Outlay 1,187,089$ These projects, while budgeted, are still subject to board approval

FY16-17

8

Debt Service ($7,806,657)

The FY16/17 budget includes $7,806,657 for debt service on the District’s four State Revolving Fund (SRF) loans, and the two BB&T Revenue Bonds. The SRF loans are paid semi-annually and the BB&T bonds repayments are made quarterly. This amount includes an extra $2,212,410 of debt service principal payments. That will be used to pay off two of the District’s State Revolving Fund loans in full.

Debt ObligationLoan Balance @

9/30/16Required Annual

Debt Service

Additional Debt Service

PaymentLoan Balance @

9/30/17SRF Loan 46401P 17,114,490$ 1,558,961$ -$ 15,991,517$ SRF Loan 464010 11,144,161 2,118,581 9,300,497 SRF Loan 464020 512,188 58,380 466,631 - SRF Loan 464030 1,843,129 146,098 1,745,779 - BB&T 2013 8,281,515 856,049 - 7,642,635 BB&T 2014 8,282,772 856,179 - 7,643,794 Total 47,178,255$ 5,594,247$ 2,212,410$ 40,578,443$

Transfers ($490,513)

The FY16/17 budget includes transfers to the District’s following reserve accounts: repair and replacement and insurance deductible. $470,513 is projected to be transferred to the reserve for future repairs and replacements. The District BB&T bonds require the District set aside 5% of the gross operating revenues from the system for repairs and replacements. The ILA with the Village also requires that $0.35 of the $4.65 flow charge be set aside for future repairs and replacements. At the end of FY16/17, the District expects to have $3,509,535 in funding designated for repairs and replacement.

Budgeted Transfer to R&R fund 470,513$ 5% of Gross Operating Revenues (427,500)$ $0.35 of Islamorada Flow Charge (43,013)Total Required Transfer to R&R fund (470,513)Amount in EXCESS of minimum requirement -$

The District is projecting to reserve $20,000 for insurance deductibles. This reserve category is important due to the District’s unique island location. The District’s goal is to maintain twelve months of operating expenses in undesignated cash as a reserve balance. Beginning Unassigned Fund Balance as of Sept. 30, 2015 10,595,667$ Projected Revenues FY15-16 16,401,094$ Projected Expenditures & Reserve Transfers FY15-16 (18,813,628)

Projected Revenues in excess of Expenditures & Reserve Transfers FY15-16 (2,412,534)

Expected Unassigned Fund Balance as of Sept 30, 2016 8,183,133 Budgeted Revenues FY16-17 14,421,543$ Budgeted Expenditures & Reserve Transfers FY16-17 (15,995,831)

Budgeted Revenues in excess of Expenditures & Reserve Transfers FY16-17 (1,574,288)Expected Unassigned Fund Balance as of Sept 30, 2017 6,608,845$

12 month operating reserve balance would be 6,511,572$

Amount in EXCESS of operating reserve 97,273$

9

Debt Reduction & Wastewater Revenue Sufficiency

The FY16/17 budget includes appropriations to make an advanced debt reduction payment of $2,212,410, and paying off two of the four State Revolving Funds (SRF) in full. By paying off these two loans early the District is will reduce it’s annual debt service requirement by $204,478 to save approximately $359,624 in interest expense, and will shorten the debt payment terms by 9 years. Below are two graphs that depict the current debt service versus assessment and County ILA income, and the revised debt service versus assessment and County ILA income after the two SRF loans are paid in full. Included FY16/17 budget is funding for a wastewater revenue sufficiency analysis, otherwise known as a rate study. The last rate study was completed during 2012, and since that time, the District successfully negotiated interlocal agreements with Islamorada and with Monroe County. The District is optimistic that the interlocal agreements will allow for advanced debt reduction that in turn would allow for a rate reduction to District customers. Current Position - Debt Service vs. Assessment Revenue (without early debt retirement)

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

AssessmentRevenue &County ILA$17M

Debt Service

Future Position - Debt Service vs. Assessment Revenue (with early debt retirement)

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

AssessmentRevenue &County ILA$17M

Debt Service

KLWTD FY17 Budget - Overview Page 1 of 7 September 6, 2016

Department / DescriptionFY 17

FundedFY 17

UnfundedFY 17

Total BudgetEstimated Revenues and other Sources

Non Ad Valorem Assessments $4,010,190 - $4,010,190Wastewater Service Revenue 8,550,000 - 8,550,000 Islamorada Wastewater Flow Revenue & Insurance Surcharge 642,207 - 642,207 Interest Income 30,000 - 30,000 SDC Prepayments 168,000 - 168,000 Islamorada ILA-Capital Project Portion 21,146 - 21,146 Monroe County ILA 1,000,000 - 1,000,000 DEP Grant Income - $16,485,422 17,485,422 ACOE Grant Revenue - 1,000,000 - Cash on Hand 1,574,288 - 1,574,288

Total Estimated Revenues and Other Sources: $15,995,831 $17,485,422 $33,481,253-

Expenditures - Non-Operating -

Transfer to Repair & Replacement Fund $470,513 - $470,513Transfer to Insurance Deductible Reserve 20,000 - 20,000 Transfer to Operational Reserve - - - Debt Service 5,594,247 - 5,594,247 Debt Principal Reduction 2,212,410 2,212,410

Total Non-Operating Expenditures: $8,297,170 - $8,297,170-

Operating - Total Administrative Department: 2,445,390 - 2,445,390 Total Plant Department: 2,039,575 - 2,039,575 Total Field Operations Department: 1,870,338 - 1,870,338 Total Maintenance Department: 444,269 - 444,269 Total Capital Improvements 899,089 17,485,422 18,384,511

Total Operating Expenditures: $7,698,661 $17,485,422 $25,184,083

Total Expenditures: $15,995,831 $17,485,422 $33,481,253-

Net of Revenues & Expenditures: $0.00 $0.00 $0.00

Fiscal Year 2017 Budget Overview Key Largo Wastewater Treatment District

KLWTD FY17 Budget - Department Expenditures Page 2 of 7 September 6, 2016

Department / DescriptionFY17

BudgetAdministration Department Expenditures

Payroll1 Payroll: Board Mtg. Compensation $73,0802 Payroll 919,933 3 Payroll Taxes 75,966 4 Retirement Program 59,581 5 Group Health Premiums 133,223 6 Employee Benefit Administration Fees 1,000 7 Workers Compensation Insurance 4,247 8 Unemployment Compensation 20,000 $1,287,030

Professional Services 9 Alarm Monitoring $520

10 Answering Service 1,320 11 Computer Support 10,000 12 Safety Training 3,482 13 CDM 457(b) Administrative Fee 3,200 14 FKAA Billing Services 135,000 15 Tax Collector Fees 12,000 16 Utility Rate Consultant 32,000 17 Professional Services - Tax Roll Svc 1,500 18 Professional Services - Engineering 52,370 19 Professional Svcs- Public Relations 3,000

Lobbyists 20 Lobbyists - Henderson 48,000 21 Lobbyists - Hicks 48,000 22 Legal - Litigation Reserve 20,000 23 Legal - Outside Counsel 20,000 24 Accounting and Audit Svcs 26,000 25 Bishop & Rosasco 75,000 491,392 26 Software & License Renewals 31,100

Travel, Training, Education & Meetings 27 General Manager Travel & Training $10,00028 Clerk Travel & Training 2,000 29 Other Travel & Training 24,000 36,000 30 Communications 57,184 31 IT Maintenance 60,500 32 Postage & Delivery Expense 7,500 33 Water (Utility)-District Office 1,000 34 Facility Cleaning 9,000 35 Solid Waste 1,376 36 Electricity 9,000 37 Insurance 364,000

Fiscal Year 2017 Department ExpendituresKey Largo Wastewater Treatment District

KLWTD FY17 Budget - Department Expenditures Page 3 of 7 September 6, 2016

Department / DescriptionFY17

Budget

Fiscal Year 2017 Department ExpendituresKey Largo Wastewater Treatment District

Administration Department Expenditures (Con't)Repairs & Maintenance

38 Repairs & Maintenance: Groundskeeping $2,40039 Repairs & Maintenance:Vehicles 1,200 40 Repairs & Maintenance: Equipment 1,000 41 Repairs & Maintenance: Buildings 5,000 $9,60042 Copier Expense 6,600 43 Advertisements 6,000 44 Storm Supplies & Preparation 2,000 45 Bank Fees 4,908 46 Low Income Assistance 10,000 47 Office Supplies 20,000 48 Printings 4,000 49 Office Furnishings 2,500 50 Employee Clothing 1,500 51 Regulatory, Permit & Recording Fees 2,500 52 Fuel: Vehicles 600 53 Board: Travel, Admin, Office Supplies 8,000

Dues & Subscriptions 53 Clerk Dues $60054 Other Dues and Subscriptions 3,500 4,100 55 Capital Outlay: Computer Equipment 8,000 56 Total Administration Department Expenditures $2,445,390

Plant Operations Department ExpendituresPayroll

57 Payroll $277,62758 Payroll Taxes 21,238 59 Retirement Program 16,658 60 Group Health Premiums 61,492 61 Workers Compensation Insurance 10,700 $387,715

Professional Services 62 Professional Services: Safety Training $1,74163 Professional Services: Alarm Monitoring 480 64 Plant Security - Security Guard 23,000 65 Professional Services: Engineering 94,050 119,271 66 Travel, Training, Education & Meetings 8,000 67 Internet 2,976 68 Phone Service 3,240 69 Postage & Delivery Expense 16,500 70 Water- Plant 4,800 71 Facility Cleaning 5,250

KLWTD FY17 Budget - Department Expenditures Page 4 of 7 September 6, 2016

Department / DescriptionFY17

Budget

Fiscal Year 2017 Department ExpendituresKey Largo Wastewater Treatment District

Plant Operations Department Expenditures (Con't)72 Solid Waste $4,67373 Electricity - Plant 312,000 74 Rents & Leases 25,000

Repairs & Maintenance75 Repairs & Maintenance:Grounds Keeping $2,50076 Repairs & Maintenance:Vehicles 1,200 77 Repairs & Maintenance:Equipment 130,000 78 Repairs & Maintenance:Buildings 40,000 173,700 79 Storm Supplies & Preparation 2,000 80 Office Supplies 2,500 81 Office Furniture 2,000 82 Safety Supplies 5,000 83 Employee Uniforms / Clothing 2,450 84 Lab Services (sample analysis) 45,000 85 Sludge Handling 325,000 86 Chemicals 425,000 87 Lab Supplies 18,000 88 Supplies 35,000 89 Tools 15,000 90 Immunizations 500 91 Regulatory/ Permit Fees 1,500

Fuel92 Fuel: Equipment $1,50093 Fuel: Vehicles 1,000 94 Fuel: Generators 3,000 5,500 95 Dues & Subscriptions 1,000 1,000

Capital Outlay96 Capital Outlay: Plant Security System $65,00097 Capital Outlay: Vehicles 26,000 91,000 98 Total Plant Operations Department Expenditures $2,039,575

Field Operations Department ExpendituresPayroll

99 Payroll $690,713100 Payroll Taxes 52,840 101 Retirement Program 41,443 102 Group Health Premiums 143,357 103 Workers Compensation Insurance 18,056 $946,409

Professional Services104 Professional Services: Safety Training $2,984105 Professional Services: Engineering 92,910 95,894 106 Travel, Training, Education & Meetings 20,000

KLWTD FY17 Budget - Department Expenditures Page 5 of 7 September 6, 2016

Department / DescriptionFY17

Budget

Fiscal Year 2017 Department ExpendituresKey Largo Wastewater Treatment District

Field Operations Department Expenditures (Con't)107 Internet $9,600108 Phones 3,600 109 Water 2,600 110 Facility Cleaning 3,485 111 Solid Waste 4,500 112 Electricity 232,450

Repairs & Maintenance113 Repairs & Maintenance:Grounds Keeping $16,000114 Repairs & Maintenance:Vehicles 13,200 115 Repairs & Maintenance:Equipment 100,000 116 Repairs & Maintenance:Buildings 17,500 117 Repairs & Maintenance:Vac System 75,000 118 Repairs & Maintenance:Grinder Pumps 10,000 231,700 119 Rents & Leases: Equipment 3,000 120 Grinder Pump Monitoring 7,200 121 Storm Supplies & Preparation 2,000 122 Office Supplies 2,500 123 Office Furnishings 2,500 124 Safety Supplies 7,500 125 Employee Uniforms / Clothing 4,900 126 Supplies (inc.cleaning supplies) 35,000 127 Immunizations 1,500 128 Service Connection Adjustments 60,000

Fuel 129 Fuel: Equipment $7,000130 Fuel: Vehicles 22,000 131 Fuel: Generators 3,000 32,000 132 Tools 20,000 133 Dues & Subscriptions 1,000

Capital Outlay134 Capital Outlay: Access Control/Security $75,000135 Capital Outlay: Vehicles 66,000 141,000 136 Total Field Operations Department Expenditures $1,870,338

Maintenance Department ExpendituresPayroll

137 Payroll $248,606138 Payroll Taxes 19,019 139 Group Health 51,199 140 Retirement 14,916 141 Workers Compensation Insurance 5,500 $339,240142 Professional Services: Safety Courses 1,244

KLWTD FY17 Budget - Department Expenditures Page 6 of 7 September 6, 2016

Department / DescriptionFY17

Budget

Fiscal Year 2017 Department ExpendituresKey Largo Wastewater Treatment District

Maintenance Department Expenditures (Con't)143 Uniforms $1,750144 Office Supplies 750 145 Office Furniture 500 146 Cleaning 3,485 147 Travel, Training & Education 10,000 148 Repairs & Maint - Equipment 1,500 149 Repairs & Maint - Vehicles 4,800 150 Fuel 8,000 151 Supplies 5,000 152 Tools 20,000

Capital Outlay153 New Vehicles Trucks $24,000154 Replacement Vehicles Trucks 24,000 48,000 155 Total Maintenance Dept. Expenditures: $444,269156 Total District Expenditures $6,799,572

KLWTD FY17 Budget - Capital Improvements Page 7 of 7 September 6, 2016

Department / Description Capital Cost Engineering

FY 17 Total

BudgetFunded Capital Improvements

157 Blower Upgrade Project $39,100 $16,980 $56,080158 Retention Area Project 242,260 18,170 260,430159 Process Water System Upgrade/Replacement Project 140,000 19,600 159,600160 Headworks Bypass Piping and Coating Rehab Project 177,092 22,137 199,229161 Chemical Feed Systems Upgrade 10,000 - 10,000162 Chlorine Contact Basin Cover 48,750 - 48,750163 New Service Connections 165,000 - 165,000164 Total Funded Capital Improvements $822,202 $76,887 $899,089

Unfunded Capital Improvement Projects165 Reclaimed Water Project $9,100,000166 Vac Pit Monitoring 6,900,000 167 Upgrade Grit Removal System 450,000 168 Fully Enclosed Headworks 500,000 169 Monorail Plant 75,438 170 Disinfection Chamber Enclosure 364,441 171 SBR & Post EQ: 4 (3 ft) Concrete Walkways 95,543 172 Total Unfunded Capital Improvement Projects $17,485,422

Total Capital Improvement Projects $18,384,511

Key Largo Wastewater Treatment DistrictFiscal Year 2017 Capital Improvements