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2011 Budget

Platte County Regional


Sewer District

414 State Route 273


Tracy, MO 64079

(816) 858-2052

Amended 11/10/2010
Table of Contents
Mission Statement ........................................................................................................................................ 1
District Board of Trustees ............................................................................................................................. 1
Staff ............................................................................................................................................................... 1
Operating Budget .......................................................................................................................................... 2
What’s New in 2011 .................................................................................................................................. 2
Revenue .................................................................................................................................................... 2
Expenses ................................................................................................................................................... 3
2011 Operating Budget ............................................................................................................................. 4
Debt Service Budget...................................................................................................................................... 6
Overview ................................................................................................................................................... 6
2011 Debt Service Budget......................................................................................................................... 7
Capital Improvement Plan ............................................................................................................................ 8
Overview ................................................................................................................................................... 8
2011 CIP Budget ........................................................................................................................................ 8
Amendment History ...................................................................................................................................... 9
Mission Statement

It is the Mission of PCRSD to protect the soil, water and the general environment of Platte County
through continued efforts to eliminate improper disposal of wastewater, thus protecting and reclaiming
property values.

District Board of Trustees

Lewis Sanders, Chairman

Aaron Jung, Vice-Chairman

Commissioner Jim Plunkett, Treasurer

Deborah Hammond, Trustee

Norm Beeman, Trustee

Staff

Dan Koch, Executive Director

Shawn Burns, Assistant to the Executive Director

Brenda Heuton, Administrative Assistant

Margaret Srite, Accounts Administrator

Jenny Davidson, Customer Service Representative

Dave VanFossen, Operations Manager

Kevin Schank, Wastewater Operator

Roy Loyd, Wastewater Operator

Scott Poelma, Wastewater Operator

Mark Terry, Inspector

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Operating Budget

What’s New in 2011


There are some significant changes to the budget for 2011. The most noticeable change is in the
format of the budget. Budgeted revenue and expenses are now organized in a manner similar to the
financial reports produced for the Board of Trustees every month. Also, the line items have not been
divided between the district’s different billing rates as they were in previous budgets. Budgets for Debt
Service and a Capital Improvement Plan have been added, as well. This new format will increase
transparency of our operations and hopefully make budgeting more precise in the future.

Below is a line graph detailing the operating revenue and expenses since 2009:

Revenue vs. Expenses


$1,600,000.00
$1,550,000.00
$1,500,000.00
$1,450,000.00
$1,400,000.00
$1,350,000.00
$1,300,000.00
2009 Actual 2010 Budget 2011 Budget
Total Revenue $1,442,383.24 $1,484,674.80 $1,562,997.02
Total Expenses $1,501,414.29 $1,400,575.35 $1,500,567.28

Revenue
The District is anticipating $1,562,997.02 in revenue for 2011. The largest portion of that
revenue will come from user charges, which make up nearly 97% of all operating revenue. The
remaining 3% is comprised of connection fees, late fees/penalties, and interest income. At the
November 10, 2010 meeting, the Board of Trustees voted to maintain 2010 sewer rates for 2011. The
average customer may see a slight decrease due to lower water consumption. Here is a comparison of
the 2010 and 2011 sewer rates based on the average usage for the year:

Brush Creek KCMO


2010 2011 2010 2011
Avg. Gal. Used 4430 4403 4430 4403
Base $ 9.16 $ 9.16 $ 34.27 $ 34.27
Rate per 1,000 gal 3.31 3.31 2.18 2.18
Debt 15.05 15.05 0.00 0.00
Total $ 38.87 $ 38.78 $ 43.93 $ 43.87
% Change - 0.23% - 0.14%

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Expenses
The District has budgeted $1,562,354.88 for expenses in 2011. Those expenses are divided into
different categories, as shown in the chart below:

Expenses

Personnel
Insurance
$655,350.00 $575,285.53 Utilities
Professional Fees
Office Expenses
Other Fees
$44,039.35
$43,000.00
$147,680.00
$97,000.00

For the 2011 fiscal year, there are three major increases in expenses from 2010. The first increase comes
from KCMO Water Services, which treats the wastewater of some PCRSD customers. KCMO is
anticipating a 15% increase in charges for wastewater treatment. Coupled with the treatment cost
increase last year, it is estimated that outside treatment will cost the District $317,000 in 2011, an
increase of nearly $66,000 from the 2010 budget. The second major increase is in maintenance line
item. The District’s maintenance costs have been artificially deflated by the warranties that existed for
equipment at the Brush Creek Wastewater Treatment Facility. Most of those warranties will expire in
2011, leaving PCRSD to pay for future repairs. In addition to the maintenance increase, the utility costs
across the board have seen increases in rates. This year we will begin sending monthly billing postcards
to customers to keep them informed of their balance every month. We will be purchasing a new truck
this year that will be large enough to haul a trailer loaded down with equipment.

The last major change is the fund transfer to the Capital Improvement Plan (CIP). During 2011,
the District will be soliciting qualifications for engineering firms to perform a Sanitary Sewer Evaluation
Survey of the collection system and pump station. This project will help create a 10-year CIP so the
District can begin proactively maintaining the system. By transferring these funds and dedicating them
for system improvements, PCRSD could avoid incurring debt and save money from not paying interest
from borrowing.

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2011 Operating Budget
*2010 YTD as
*2009 Actual *2010 Budget of Nov. 10 2011 Budget % Change
Beginning Balance 63,000.00

Revenue
User Charges 1,369,438.66 1,484,674.80 1,391,600.39 1,450,550.28 -2.30%
Penalties & Late Fees - - - 10,800.00
Connection Fees 72,944.58 - 99,429.58 32,017.00
Interest Income - - - 7,200.00
Total Revenue 1,442,383.24 1,484,674.80 1,491,029.97 1,500,567.28 1.07%

Expenses
Personnel
Salaries & OT 416,259.57 442,435.30 318,526.75 437,004.68 -1.23%
FICA & Medicare 30,531.23 39,550.30 24,230.09 33,430.86 -15.47%
Employee Benefits 59,419.15 75,000.00 58,879.27 72,000.00 -4.00%
Board Expenses 5,099.46 10,000.00 4,744.14 10,000.00 0.00%
Uniforms 6,883.17 7,500.00 6,999.03 4,750.00 -36.67%
Membership Fees & Dues - - - 3,000.00
Training/Conferences 3,398.69 8,075.00 4,010.20 10,000.00 23.84%
Mileage Reimbursement 4,651.39 6,875.00 2,060.90 5,100.00 -25.82%
Total Personnel 526,242.66 589,435.60 419,450.38 575,285.53 -2.40%

Insurance
Hazard, Liability, & Vehicle 36,752.00 41,400.00 37,575.00 35,000.00 -15.46%
Unemployment - - - 3,039.35
Workers Compensation - - - 6,000.00
Total Insurance 36,752.00 41,400.00 37,575.00 44,039.35 6.38%

Utilities
Electricity 145,434.49 134,000.00 106,236.43 123,500.00 -7.84%
Water/Sewer - - 2,506.22 4,680.00
Telephone - - 15,738.15 19,500.00
Total Utilities 145,434.49 134,000.00 124,480.80 147,680.00 10.21%

Professional Fees
Attorney 330,106.19 65,000.00 48,689.89 32,000.00 -50.77%
Engineer - 21,000.00 7,090.35 21,000.00 0.00%
Accounting/Payroll - 6,000.00 6,228.75 9,000.00 50.00%
Auditor - 35,000.00 27,300.00 35,000.00 0.00%
Other Professional Fees - - 62,439.44 -
Total Professional Fees 330,106.19 127,000.00 151,748.43 97,000.00 -23.62%

Office Expenses
Office Supplies 3,632.50 6,000.00 2,871.83 5,000.00 -16.67%
Office Equipment 6,447.19 17,700.00 8,466.34 18,000.00 1.69%
Postage 7,585.70 10,911.97 4,442.91 16,500.00 51.21%
Printing & Reproduction 793.92 1,800.00 314.07 1,800.00 0.00%
Public Notices/Advertising - - - 700.00
Web Page 791.77 5,000.00 704.56 1,000.00 -80.00%
Total Office Expenses 19,251.08 41,411.97 16,799.71 43,000.00 3.83%

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*2010 YTD as
*2009 Actual *2010 Budget of Oct. 13 2011 Budget % Change
Other Fees
Missouri One Call 1,559.60 4,320.00 3,104.60 4,320.00 0.00%
DNR Fees 3,303.08 2,819.21 3,630.00 9.90%
Outside Services (Lab) 4,006.84 10,000.00 5,904.82 9,000.00 -10.00%
Outside Treatment (KCMO) 230,250.14 253,704.70 191,265.80 317,000.00 24.95%
Maintenance 162,669.24 122,000.00 97,427.86 146,400.00 20.00%
Service Vehicles 15,175.20 36,000.00 13,571.89 36,000.00 0.00%
Administration Building 29,966.85 38,000.00 23,606.67 30,000.00 -21.05%
Collections - - - 9,000.00
Transfer to CIP - - - 100,000.00
Total Other Fees 443,627.87 467,327.78 337,700.85 655,350.00 40.23%

Total Expenses 1,501,414.29 1,400,575.35 1,087,755.17 1,562,354.88 11.55%

Surplus (Deficit) (59,031.05) 84,099.45 403,274.80 (61,787.60)


Estimated Ending Balance 1,212.40
* Note: These numbers have been adapted to conform to the new budget format.

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Debt Service Budget

Overview
The district has used different financing mechanisms to improve and expand the service
provided to its customers. These include a combination of State Revolving Fund (SRF) loans and a local
revenue bond. Debt payments are made every year through assessments to affected customers. For
2011, PCRSD will owe $1,681,598 for its SRF loans and $70,440 for the local revenue bond.

That debt portion totaling $1,752,038 will be paid via assessments and interest income earned
from the debt service reserve. The remaining amount will come from the Operating budget under
Administration Building for the PCRSD office in Tracy, Missouri. A detailed breakdown of the 2011 debt
service payments are below:

Principal Interest Total


Brush Creek Plant SRF $ 405,000 $ 196,196 $ 601,196
Series 1997D 75,000 38,575 113,575
Series 1998A 60,000 28,473 88,473
Mesa Village SRF 150,000 102,878 252,878
PCRSD Office SRF 20,000 16,488 36,488
Brush Creek Expansion SRF 30,000 558,988 588,988
Local Bonds 40,000 29,940 69,940
Total 2011 Payments $ 780,000 $ 971,538 $ 1,751,538

The district’s total debt payments through 2016 are listed below:

Year Principal Interest Total


2012 $ 820,000 $ 929,828 $ 1,749,828
2013 900,000 885,607 $ 1,785,607
2014 930,000 839,312 $ 1,769,312
2015 975,000 789,948 $ 1,764,948
2016 990,000 737,803 $ 1,727,803

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2011 Debt Service Budget
2010 YTD as
2009 Actual 2010 Budget of Oct. 13 2011 Budget
Beginning Balance - - - 1,902,018.23

Revenue
Capital Projects - - 7,566.16
Debt Service - - 307,290.50 510,023.64
Bond Retirement - - 528,816.90 534,323.16
Penalties & Late Fees - - -
Interest Income - - 402,189.94 785,543.92
Total Revenue - - 1,245,863.50 1,829,890.72

Expenses
Local Bonds 68,897.50 76,735.00 77,235.00 70,440.00
SRF Payments 919,196.10 1,737,731.00 775,472.48 1,681,598.00
Total Expenses 988,093.60 1,814,466.00 852,707.48 1,752,038.00

Surplus (Deficit) (988,093.60) (1,814,466.00) 393,156.02 77,852.72


Estimated Ending Balance 1,979,870.95

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Capital Improvement Plan

Overview
Beginning in 2011, operating funds will be placed in a reserve account to prepare for future
system enhancements. This Capital Improvement Plan (CIP) will be a proactive program that will help
PCRSD discover and repair potential defects in sewer lines or equipment before they fail and cause
significant problems. In an effort to create a 10-year CIP, the District will be soliciting qualifications for
engineering firms to perform a Sanitary Sewer Evaluation Study in 2011.

Since an official CIP has not been adopted, there is only one budgeted expense in 2011. The
district plans to acquire a skid loader which will enable staff to perform gravel road maintenance at the
various plants and pump stations and various tasks to help maintain access to the collection system.

2011 CIP Budget


2010 YTD as
2009 Actual 2010 Budget of Oct. 13 2011 Budget
Beginning Balance - - - $ 136,936.46

Revenue
Transfer from Operations - - - $ 100,000.00
Interest - - - $ 60.00
Total Revenue $ 100,060.00

Expenses
Skid Loader - - - $ 29,000.00
Total Expenses $ 29,000.00

Surplus (Deficit) - - - $ 71,060.00


Estimated Ending Balance - - - $ 207,996.46

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Amendment History

Amendment 1 – Approved Nov. 10, 2010

• Added Beginning Balance of $63,000 to Operating Budget.


• Reduced User Charges from $1,512,980.02 to $1,450,550.28 (decrease of $62,429.74).
• Repealed 2011 Sewer Rates and carried over 2010 rates.

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