FY 2012 by Metropolitan Sewerage District of Buncombe County, NC

Metropolitan Sewerage District of Buncombe County, North Carolina

Budget Document

FY 20 011-20 012 Fin nal Budgget for Metrop politan Seweraage District of Buncom B mbe Cou unty, Noorth Carrolina Asheville e, North Carrolina

2028 Riversside Drive W H Mull Building North Carolina 28804 Asheville, N Phone: (828 8) 254‐9646 Fax: (828) 2 232‐5530

Thom mas E. Hartye, G General Managger W. Sccott Powell, Director of Finan nce org Website: www.msdbc.o

Certificcate of Achieveement

The Go overnment Finance Offficers Asso ociation of the United d States an nd Canada (GFOA) presented a Distinguisshed Budgett Presentatiion Award tto the Metrropolitan Seewerage Disstrict of Buncombe County, No orth Carolinaa for its ann nual budget for the fiscaal year beginning July 1 1, 2010. This is the tthirteenth co onsecutive yyear that the e MSD has reeceived this award. In order to receive this award, a governme ental unit muust publish aa budget document thatt meets program criteria as a policy doccument, as an operatioons guide, aas a financial plan, an nd as a communicaation device. This aw ward is valid d for a perio od of one year y only. W We believe o our FY12 bu udget contin nues to conform to o program re equirementss, and we arre submittingg it to GFOA A to determine its eligib bility for another aw ward.

Principal Officials

Board Member

Representative of

Steven T. Aceto, Chairman Jackie W. Bryson, Secretary/Treasurer Terry Bellamy W. Louis Bissette, Jr. Jon E. Creighton Max L. Haner E. Glenn Kelly Al Root Bill Russell Bill Stanley

Town of Montreat Woodfin Sanitary Water & Sewer City of Asheville City of Asheville County of Buncombe County of Buncombe Town of Biltmore Forest Town of Weaverville City of Asheville County of Buncombe

M. Jerry VeHaun Robert C. Watts

Town of Woodfin Town of Black Mountain

Legal Counsel

Auditing Firm

Engineer of Record

Roberts & Stevens, P.A.

Cherry, Bekaert & Holland, L.L.P.

McGill & Associates

General Manager

Director of Finance

Thomas E. Hartye, PE

W. Scott Powell

Table of Contents

Section Title

Subdocuments

Page No.

Introduction

Budget Message

Policies & Budget Process

Financial Plan Rate Projections & Budgetary Forecast Budgetary Forecast Based on Current Business Plan Fiscal Policy Budget Process Budget Calendar Budgetary Basis of Accounting Fund Structure Flow of Funds – Bond Order Budget Summary Component Fund Chart Revenue

9 13 14 15 20 22 23 25 28 29 30 32

Operation & Maintenance Insurance Funds

Operation & Maintenance Fund FY12 Budget ‐ All Departments Summary Office of the General Manager Human Resources Department Administrative Services Department Financial Services Department Water Reclamation Facility Department System Services Department Planning & Development Department Capital Improvement Department

Overview Self‐Funded Employee Medical Program Budget Post‐Employment Insurance Budget Worker’s Compensation Financial Plan General Liability Financial Plan

37 40 46 50 57 65 72 77 82 86 91 92 93 93 94

Table of Contents

Section Title

Subdocuments

Replacement Funds

Overview Fleet Equipment Replacement Fund Wastewater Treatment Plant Replacement Capital Reserve Fund

CIP Program

Capital Improvement Program Program Summary Impact of CIP on Operations Operational Impact Summary Debt Financing Aggregate Debt Service General Revenue by Source Expenses by Function Wastewater Flow Table Demographic Statistics – Service Area Population Demographic and Economic Statistics Principal Commercial Users Principal Employers About MSD, City of Asheville and Buncombe County District Boundary Map Job Classification by Grade Order Staffing History Glossary of Terms

Debt Financing

Statistical Information

Appendix

Glossary

Page No. 95 96 97 97

99 103 119 120 133 137 139 140 141 142 143 144 145 147 149 153 156 161

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Introduc on

June 15, 2011

Members o of the Board Metropolitan Sewerage e District of Buncombe C County, Norrth Carolina W. H. Mull Building 2028 Riversside Drive Asheville, N North Carolin na 28804

Subject: FY11‐12 Bud dgets and Prroposed Sew wer Rates

Dear Memb bers of the B Board,

We respectfully present the FYY12 Budget for the Mettropolitan Sewerage Disstrict of Bun ncombe County, No orth Carolinaa. The budge et incorporattes staff recoommendatio ons presented to and acccepted by the Perrsonnel Com mmittee, wh hich met on n April 28, 2011, the C Capital Imprrovement P Program Committee e, which mett on May 5, 2 2011, and th he Finance C Committee, w which met o on May 11, 2 2011.

We have developed the FY1 12 Budget to t advance the organization’s mission “to provide wastewater collection and treatme ent to its ussers which ppromotes thee health and d safety of aaffected citizens in tthe most efffective and efficient maanner possibble today and in the future”. The fo ollowing operational and capital budget is designed to provide services m meeting or eexceeding aall state regulationss and Bond O Order coven nants with w which the Di strict must ccomply, with any rate cchanges to be at the e lowest resp ponsible level.

Current Year Highlights In FY 11, the Disstrict’s dom mestic and industrial rrevenue is expected tto meet bu udgeted projectionss. While som me light and medium com mmercial coonsumers are still feeling the effectss of the recession, tthe District ccontinues to o achieve gro owth in the nnumber of residential cu ustomers.

The Disstrict has haad to conten nd with incrreased heal thcare cost as well as increased fu uel and utility cost.. These incre eased costs have been o offset by a ddecrease in iinterest expenditures an nd debt administrattive cost. Byy limiting th he increase of other opperating exp penditures aand by strattegically planning th he timing of CIP projectss, the Districct has been aable to limitt the propossed rate incrrease to 3.0% for th he upcomingg year. Addittionally, the District’s long‐range bu usiness plan incorporatees these changes an nd projects that future raate increases will approxximate 3.0% % for the nexxt year and 2 2.5% for the remaining eight yeaars.

This bu udget contin nues several recent inittiatives to m maintain thee District’s overall strategy of habilitating significant p keeping collection liness and the plant function ning effectiveely while reh portions n Introduction

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

TO: Members of the Board SUBJECT: FY11‐12 Budgets and Proposed Sewer Rates June 15, 2011

of aging infrastructure. The most important goal remains meeting all regulatory permit requirements including the reduction of sanitary sewer overflows (SSOs).

The Systems Services Department continues to expand its participation in sewer line rehabilitation and replacement efforts to minimize SSOs. Goals for FY 2011‐12 include utilizing Infrastructure Rehabilitation System (IRS) lining and dig‐and‐replacement construction to rehabilitate and replace at least 20,000 linear feet, while providing preventative maintenance for approximately 500,000 linear feet of the system by employing in‐house jet wash cleaning and both chemical and mechanical root control. In addition, the Systems Services Department will manage the District’s Right‐of‐Way maintenance program whereby easements will be periodically cleared or mowed.

The Wastewater Treatment Plant is continuing systematic improvements as part of the District’s detailed Facilities Management Plan. In FY12, the District will continue the large project to replace the existing secondary microscreens started in FY11 as well as rehabilitation of the plant’s aged power supply system.

Operating Budget The proposed $14.3 million operating budget represents routine expenditures and capital equipment acquisitions needed for the day‐to‐day operations of the District. Highlights of significant components and changes include:

 Compensation and benefits: The staff and employees considered salary and health insurance increases together as part of a comprehensive compensation package.

 A 1.5% cost of living increase as well as a $775 lump sum payment per employee: CPI increased 2.7% for the last twelve‐month period, Division Directors in conjunction with Employee Advisory Committee have requested cost of living increase to keep pace with industry salary increases as well as to encourage retention of valued employees. The Personnel Committee has recommended a 1.5% cost of living increase and the $775 lump payment per employee to help mitigate the impact of self‐insurance medical plan changes. This has a $215,000 net impact on current year expenditures.  A 7.5% increase in funding for self‐insured medical plan: During FY 11, staff worked

with the Employee Advisory Committee to limit certain health plan benefits and increase cost sharing by employees. The two groups are currently working on a long‐ term strategic plan to address controllable medical issues. The 7.5% increase in employer contribution is estimated to be sufficient to cover all expenses of the plan while maintain prudent reserves for claims. Employee premiums are projected to be Introduction

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

TO: Members of the Board SUBJECT: FY11‐12 Budgets and Proposed Sewer Rates June 15, 2011

increased by 25% as well as the employee absorbing an additional $179,000 in “out of pocket” expenses through design changes. This has a $71,805 net impact on current year expenditures.

 An 8.4% increase in funding for North Carolina retirement cost: Due to recession of 2008, the Local Governmental Employees’ Retirement Systems (LGERS) experienced a reduction of $4.9 billion in plan assets. Subsequently, LGERS raised the District’s contribution rate from 6.45% to 6.96% of total salary and wages. Over the next six years, contribution rates are projected to increase to an amount slightly over 9%. This has a $41,394 impact on current year expenditures.

 Funding for Post‐Employment Health Benefit: Starting in FY 09, GASB 45 required recognition of cost for Post‐Employment Health Benefits. An actuarial study was done last year, which stated that current year funding should be $211,500. Current funding has been implemented into the proposed FY12 budget and the current business plan and represents 1.5% of total operations.

 Materials, Supplies, and Service expenditures increased 1.6% over prior year: The District has made a concerted effort to hold materials, supplies, and services cost close to the prior year’s level, taking into account inflationary cost increases. The District has increased its fuel and utilities line items 54.5% and 8.6% respectively based on current economic trends. Discretionary expenditures have been limited where practicable. This has a $318,481 impact on current year expenditures.

Capital Improvement Program The District prepares a ten‐year Capital Improvement Program as required by its State Collection System Permit and the Consolidation Agreements. The estimated construction expenditure for FY12 is $19.7 million, which is comprised of an estimated $18.5 million in construction, $200,000 of reimbursement and $1 million in contingency. A detailed list of individual projects and planned expenditures by year was presented at the May 5, 2011 CIP meeting.

The Board has consistently financed its capital improvement program through revenue bonds and pay‐as‐you‐go moneys. As of June 30, 2011, the District will have $101.5 million in outstanding revenue bond debt, with total debt service of $8.2 million due before the end of the fiscal year. Of the total debt, approximately $20.7 million is variable rate debt. Unlike counties and cities, the District does not have a legally mandated debt limit. However, the District does have a rate covenant. The covenant requires the District to set rates and charges so that income available for debt service will not be less than 120% of fiscal year debt service requirement.

Introduction

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

TO: Members of the Board SUBJECT: FY11‐12 Budgets and Proposed Sewer Rates June 15, 2011

MSD has initiated a major program to rehabilitate its Wastewater Collection System. This program will conform to the North Carolina Department of Environmental and Natural Resources (NCDENR) new Collection System Permit requirements, and will improve the operational performance and extend the life of the collection system. The estimated cost over a 10‐year period is approximately $148.6 million. This Permit ushers in a change in focus of the District’s Capital Improvement Plan. In the previous decade, efforts had been directed to expediting completion of certain projects identified by the member agencies and assumed by the District during the consolidation process. For example, construction of the 23.8‐mile North Swannanoa Interceptor begun in 1993 was completed during FY 2004 at a cost in excess of $44 million. Now that most of these “consolidation” projects have been completed, our focus has been redirected to rehabilitation of the State‐mandated 250,000 feet of sewer line every five (5) years and other projects identified in the Master Plan.

This rehabilitation has been made more cost‐effective by the development of the Pipe Rating Program. Pipe Rating is a proactive planning tool, which utilizes Closed Circuit Television (CCTV) information, a GIS database, and actual maintenance history to view, rate, and computer‐score pipe segments based on a number of factors. These factors, for any given manhole‐to‐manhole segment, include maintenance work order history, number, and severity of defects, and record of overflows on that segment, and are combined to yield a rating useful for prioritizing rehabilitation efforts.

Pipe Rating minimizes costs by helping the District focus rehabilitation dollars where they are needed most, rather than the previous replacement of collector lines throughout an entire basin. In recognition of this innovative program, the Association of Metropolitan Sewerage Agencies (AMSA) awarded the District one of only two 2003 National Environmental Achievement Awards.

Major projects for FY 12 include the $664,000 Town Branch Interceptor phase 2 with over 1,968 linear feet, $342,300, Dingle Creek at Crowfields Interceptor with over 2,307 linear feet, $303,200 Patton Avenue at Parkwood Road with over 1,810 linear feet, $902,500 PRP Lining Contract #6 with over 10,456 linear feet, and the completion of the Secondary Microscreen project at a cost $5.7 million. In FY12, plant electrical system improvements are scheduled to cost $1.0 million. These are in addition to numerous smaller projects completed throughout the collection system. Further details are available in the CIP section of the budget document.

The District’s Collection System Master Plan addresses the orderly extension of the District’s collection system into future service areas. The plan has been prepared in close cooperation with the District’s member agencies and regional stakeholders. The land use policies and zoning regulations of each agency were used for land usage, growth projections/densities, and line locations. For areas outside of corporate or jurisdictional limits, Buncombe County’s proposed Zoning Ordinance has played an integral role in defining future service areas. Introduction

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

TO: Members of the Board SUBJECT: FY11‐12 Budgets and Proposed Sewer Rates June 15, 2011

The plan will serve as a basis to ensure that the sewer system will be extended in an orderly fashion, and is done so in accordance with the planning policies of the various local governments within the District’s service area.

During FY 07, a new Facilities Plan was completed for the Water Reclamation Facility. Although there has been no major increase in flow, some equipment at the Facility was reaching the end of their useful life. Consulting engineers met with staff to evaluate current operations and equipment and to prepare recommendations for maintenance and improvements. Four projects were identified as critical and were included in the ten‐year CIP:

 Grit and Grease Removal—Grit and grease facilities were not working effectively and were causing problems with downstream processes. This process was rehabilitated during FY08 by both WRF maintenance staff and contractors at a cost of $554,000. This represents approximately 10% of the cost to completely replace the equipment.

 Secondary Microscreens—Rusty and no longer performing satisfactorily, this equipment has become an operational and maintenance headache. Being the critical barrier between the WRF and the river, the secondary microscreens have been scheduled for replacement. Design is complete with construction beginning in FY 11 with completion in FY12. Total cost of the project is estimated to be $10.4 million.

 Intermediate Pumps—These aging pumps are hydraulically driven which is highly inefficient, and there is concern of contaminating the effluent with hydraulic fluid should the system leak. The FY07 Facilities Plan called for installing new variable‐speed electric pumps. The cost of replacing the aging pumps will be approximately $2.5 million. The project was completed in FY11.  Rotating Biological Contactors (RBC)—These large rotating wheels house biomass growth,

which dip into the wastewater and allow waste to be biologically consumed as it flows through the basins. These RBCs can weigh up to 45,000 pounds and after turning constantly for 20 years propelled by compressed air, some are suffering mechanical failure and broken shafts. Access is problematic and replacements units use an electric motor, rather than the current compressed air configuration. Currently, this process is operating adequately, and funds for further study into replacement of or alternatives to this process have been included in future years of the CIP.

Impact of CIP on Operations For most municipal and county governments, capital improvements often result in higher operating costs. For example, larger buildings increase utility expenses, and new facilities such as libraries or swimming pools involve hiring additional staff. The opposite holds true for the District. Introduction

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

TO: Members of the Board SUBJECT: FY11‐12 Budgets and Proposed Sewer Rates June 15, 2011

Through major rehabilitation projects to the sewer collection system, the District is expected to realize a modest cost reduction in wastewater treatment operations by reducing infiltration of groundwater and inflow of surface water into the sewer system. Mud and grit, which accompany infiltration/inflow will also be reduced, thereby increasing the life of pumps and other treatment equipment adversely effected by abrasion.

Other savings are realized from capital expenditures as new or rehabilitated sewer lines also require less maintenance and are not as susceptible to frequent blockages and overflows as older and smaller lines.

The District’s major environmental responsibility is reduction of Sewer System Overflows (SSOs). Staff has estimated the average cost of responding to an SSO to be approximately $2,175. During FY 2000, the District experienced more than 289 SSOs, which have been reduced to less than 50 in recent years. Thus, the District has been able to focus approximately $500,000 additional dollars annually on preventative maintenance as opposed to responding to spill events.

Moreover, the North Carolina Department of Environment and Natural Resources has the discretion to levy fines up to $25,000 per day per SSO if the District does not follow through on renovations and rehabilitations planned for areas identified as requiring capital improvements. Therefore, the CIP has a positive impact on operations by reducing repair and replacement while avoiding environmental penalties.

Sewer Rate Increase Staff recommends a 3.0% increase in domestic sewer rates and meter fees for FY12, including a previously approved plan to achieve flow rate parity between industrial and domestic users. This amount is in line with past increases. We believe this rate increase is prudent under the current economic situation and is necessary to provide for the following District responsibilities and objectives:

   

Obligation of State Collection Permit for approximately 250,000 LF/5 years rehabilitation Debt coverage ratio attractive to investors and rating agencies Support of the pay‐as‐you‐go element of the CIP in addition to bonds Continue with goal of periodic smaller rate increases in lieu of large increase in future years  Adequate current funding and maintenance of prudent reserves for self‐insured medical and dental plan

In the past, the MSD Board has endeavored to keep rate increases to a minimum. The District’s Bond Order requires sewer rates be set to ensure that the excess of revenues over current Introduction

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BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

TO: Members of the Boaard 2 Budgets and Proposed Sewer Ratess SUBJECT: FY11‐12 June 15, 20 011

expenditurres is at least 120% of debt servicce. Additionnally, the bo oard balancees the bond d order requiremen nts while maaintaining all regulatory and fiduciarry responsib bilities.

Domesttic sewer rattes for the past five yearrs as well as FY12 are shown below:

Rate Increaase % Meter, Maintenance & B Billing Fees Flow Rate (per ccf) Avg. Month hly Bill (5ccf)

FY07

FY08

FY 09

FY 10

FFY 11

FY Y 12

4.5% $6.01 $3.28 $22.41

4.0% $6.23 $3.41 $23.27

3.0% $6.43 $3.51 $23.99

3.75% $6.64 $3.64 $$24.84

3 3.5% $ $6.87 $ $3.77 $25.72

3 3.0% $7.05 $3.88 $2 26.45

Distinguished Budgett Award The Go overnment Finance Offficers Asso ociation of the United d States an nd Canada (GFOA) presented a Distinguisshed Budgett Presentatiion Award tto the Metrropolitan Seewerage Disstrict of Buncombe County, No orth Carolinaa for its ann nual budget for the fiscaal year beginning July 1 1, 2010. This is the tthirteenth co onsecutive yyear that the e MSD has reeceived thiss award. In o order to receeive this award, a governmenta g al unit mustt publish a budget doccument thatt meets pro ogram criterria as a policy docu ument, as an n operations guide, as a ffinancial plaan, and as a ccommunicattion device.

This aw ward is valid d for a perio od of one year y only. W We believe o our FY12 bu udget contin nues to conform to o program re equirementss, and we arre submittingg it to GFOA A to determine its eligib bility for another aw ward.

In Closing The Budget repressents the co ombined effo orts and guuidance of th he Board, itts Committeees and ecial thankss to Teresa Gilbert for assembling the budgett documentss, Ed Bradfo ord, CIP staff. A spe Director, and Sharon Walk W for asssembling the CIP Sectioon of the Budget, and to Peter Weed for updating th he sewer ratte projection ns. We look fforward to w working with h you, staff, and our rateepayers as we imple ement this ffinancial plan n and policy document.

Respecttfully submittted,

Thomas E. H Hartye, PE General Manager

Introduction n

W W. Scott Pow well, CLGFO D Director of Fiinance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

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Introduction

Page 8

Policies & Budget Process

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Financial Plan

Guide to the Budget Document

This Budget presentation has four major objectives:

 Policy Document—To show how resources have been allocated in response to the mission statement and supporting goals/objectives set forth by the Board of Directors.  Financial Plan—To present the District's Financial Plan for the fiscal year, showing where the money will come from and how it will be spent.  Operations Guide—To describe services provided along with goals and objectives for each unit within the District, and a method for measuring progress towards the District’s mission of providing cost‐effective and efficient wastewater collection and treatment. In addition, a Budget is a required management tool for compliance with state wastewater management licensure and local government fiscal control regulations.  Communications Device—To explain the District budgetary procedures and interactions with other District planning processes and within the larger context of local and regional economic and environmental conditions. This document has been divided into sections as follows to assist the reader’s understanding and ability to easily locate information:  Introduction—The transmittal letter provides current year trends and highlights.  Policies & Budget Process—Presents the policies forming the basis for all management decisions, a narrative of the overall budget process, the underlying fund structure, and a discussion of revenue.  Operation & Maintenance Fund—Provides detail of departmental expenditure budgets including underlying goals and objectives, as well as accomplishments and performance measures.  Insurance Funds—Describes internal service‐type funds used to allocate premiums and associated expenses among various departments.  Replacement Funds—Provides funding status of various replacement and reserve funds.  CIP Program—Details the capital improvement program, including budgetary process, current year highlights, and summarizes planned projects for the upcoming 10 years.

Policies & Budget Process

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Financial Plan (continued)

 Debt Financing—Provides further detail on debt philosophy and management, including current and future debt service.  Statistical Information—Includes historical summaries of District financial information, plant operational data, and local demographic and economic statistics.  Appendix—Provides supplemental narrative about the District and local economy, details of capital equipment expenditures budgeted and staffing information.  Glossary—Definitions of technical terms and acronyms.

Background of Entity

The Metropolitan Sewerage District of Buncombe County, North Carolina, established under an act of the state legislature, is a local governmental agency providing wastewater collection and treatment services to approximately 50,000 residences and businesses located in several municipalities and certain unincorporated areas in Buncombe County. The governing board is comprised of twelve members appointed by eight local governments who serve three‐year overlapping terms. The District owns a 40 million gallon per day (MGD) wastewater treatment plant and the associated collection network of approximately 960 miles of collector sewers, 29,000 manholes, and 31 pump stations. The District is responsible for current operation and maintenance of this infrastructure, as well as for planning for future operations and capacity. An expanded section on the history and composition of the District along with an overview of the regional economy is located in the Appendix.

Mission Statement and Goals

The budgetary process starts with the mission statement promulgated by the District Board. To achieve the purpose articulated in the mission statement, staff is charged with developing long‐ term goals and the short‐term objectives designed to achieve these goals. Using this framework, annual operating and construction budgets are proposed to fulfill these short‐term objectives and thus meet or reach toward long‐term goals. Therefore, an understanding of the mission statement and the underlying goals and objectives provide a context for the decisions made in developing the annual budget. Each departmental goal and objective is tied to one or more of the non‐financial or financial policies to coordinate and prioritize the District’s focus, initiatives, and efforts. Policies & Budget Process

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Financial Plan (continued)

Mission Statement: To provide wastewater collection and treatment to its users which promotes the health and safety of affected citizens in the most effective and efficient manner possible today and in the future. Long‐Term Goals: Staff has developed four goals to be pursued in support of the Mission Statement adopted by the Board: 1. 2. 3. 4.

Protection of health, safety, and the environment Excellence in customer service Cost‐effectiveness Continuous improvement

Managers and employees use these goals to determine appropriateness of and to enhance coordination and consistency of decisions, activities, and initiatives throughout the District. Short‐Term Objectives: Objectives are specific achievements or strategies, which support or lead to long‐term goals and are used to determine how resources are allocated in this budget. 1. 2. 3. 4.

Maintain Collection System Permit. (Goal #1) Maintain Discharge Permit to French Broad River for Water Reclamation Facility. (Goal #1) Maintain a qualified and motivated workforce. (Goals #1‐4) Coordinate, to the extent practicable, with other governmental and private entities for cooperative provision of sewer service to gain optimum economies of scale, reduced capital cost, and improved efficiency. (Goals # 1‐4) 5. Participate in two‐way communications with customers, elected officials, and other stakeholders in matters of mutual concern such as regulations, policies, and fees. (Goals # 1‐ 4) 6. Provision of information and education concerning stewardship of water resources. (Goals # 1‐4)

Authority for the District’s first goal of protection of health, safety, and the environment is received from the Collection System and Discharge Permits issued by the North Carolina Department of Environment and Natural Resources, Division of Water Quality. Therefore, the major emphasis of District activities is to fulfill or comply with the terms of these permits. In addition to specifying certain measures of water quality and minimum standards for maintenance of lines, the permits expect steady progress towards rehabilitation of aged lines and planned replacement of plant assets. The remaining four objectives are strategies designed to complement the efforts to fulfill the requirements of the permits in achieving the District’s goals. Obviously, a competent, well‐trained, and committed workforce will not only be technically accomplished, but will also provide excellent customer service, and will explore ways to do the job better and at less cost. Similarly, leveraging resources with others can improve service delivery and reduce costs. Policies & Budget Process

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Financial Plan (continued)

Finally, communication with and education of stakeholders is designed result in wide‐ranging improvements to service delivery, customer relations, and cost containment. Using key objectives identified as critical to the District’s mission, Departments develop their individual initiatives and objectives, and the performance measures by which to assess progress. As the budgets for each division or department are presented in the next section, each departmental goal will reference the number of the overall MSD goal, objective or the fiscal policy supported. In this way, each department establishes its accountability and demonstrates the linkage between activities and the achievement of District objectives. The Systems Services Division bears responsibility for maintaining the Collection System Permit (Objective #1) and the Water Reclamation Facility for maintaining the Discharge Permit (Objective #2). Details of the requirements of these permits and related performance measurements may be found in these respective departmental budgets behind the “Operation & Maintenance Fund” tab. The other objectives have no legal or regulatory basis, but are underlying principles of how the Board intends the District to carry out the primary mission, and are referenced as appropriate in the departmental goals and objectives.

Policies & Budget Process

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Rate Projections & Budgetary Forecast

The District is required by its Bond Order to set rates at such a level that the excess of revenues over current expenditures equals at least 120% of debt service. The Board established a revenue policy that the goal for debt coverage ratio be 150% or 1.5, and sufficient to meet all operating and capital needs with modest level increases. The Board has also established a budget policy that calls for a ten‐year projected operating budget and capital improvement program for long‐term planning purposes. Revenue and expenditure projections are integrated with anticipated capital expenditures to anticipate rate increases and timing of debt issuance based on cash flow levels and debt coverage ratios. Consumer revenue projections are based on consumption rates, growth in number of taps during the previous year, and projected rate increase. Industrial revenue is developed from anticipated fees of actual individual companies, since there are relatively few industrial customers and the charges are determined by effluent strength, as well as volume, which may vary greatly depending on the particular entity. As there are a limited number of large customers, any major change to a particular facility such as announced layoffs or closings, may be immediately factored into the industrial revenue computation. Operating expenditures are anticipated to increase at the regional cost of living rate, and capital expenditures at the general inflation rate. Future debt service is projected to be issued at slightly above prevailing rates. As this forecast is updated at least semiannually, management is able to adjust timing of capital projects and discuss in advance with Board members proposed timing and levels of rate increases. Using consumption data projected from the recent historical population growth statistics within the Asheville‐Buncombe County area, the District anticipates annual rate increases of 3.0% for the next two years and 2.5% for the remaining eight years. Construction costs are fairly level reflecting the District’s Master Plan to consistently rehabilitate approximately 50,000 linear feet of pipe per year. The CIP expenditure forecast for FY12 reflects a continuation of a major rehabilitation project at the Wastewater Treatment Plant. This long‐range budgetary projection also shows how the District plans to finance these projects with a combination of bond proceeds and pay‐as‐you‐go funding from sewer revenues. Overall, the ten‐year projection indicates the District’s continuing ability to provide wastewater collection and treatment for customers, infrastructure maintenance in accordance with state regulations, and debt service in compliance with Bond Order, all with minimal, uniform rate increases.

Policies & Budget Process

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Policies & Budget Process

Total Funds Available

FY 2009

FY 2008

0.4%

11,754,849 400,000

62,547,292

22,800,471 1,510,669 584,554 333,185 2,671,999 1,792,514 37,003 16,560 171,411 0 29,918,366

12,408,349 400,000

58,352,814

22,284,340 1,386,132 620,247 281,830 2,677,285 817,650 37,003 16,560 449,370 113,246 28,683,663

29,669,151

$23.99

$23.28

32,628,926

3.0%

4.0%

12,454,727 300,000

72,115,147

19,072,980

23,242,077 1,498,529 629,212 278,100 1,375,910 457,815 37,003 16,560 0 10,651 27,545,857

4.5%

25,496,310

FY 2010

$24.84

3.75%

13,457,435 250,000

71,245,194

24,141,734 1,569,536 648,088 175,565 1,847,675 383,883 37,000 20,507 0 90,005 28,913,994

3.9%

42,331,200

FY 2011

$25.72

3.5%

14,010,298 350,000

14,573,761 450,000

51,868,053

30,169,268

29,175,557

64,118,717

25,988,228 1,667,909 677,544 105,000 1,287,500 338,215 37,000 67,872 0

3.8%

21,698,785

FY 2013

$27.24

3.0%

25,030,400 1,602,660 657,810 105,000 1,250,000 424,815 37,000 67,872 0

3.6%

34,943,160

FY 2012

$26.45

3.0%

15,262,349 500,000

43,122,115

30,999,414

26,832,815 1,735,669 697,870 105,000 1,325,000 197,463 37,000 68,597 0

3.3%

12,122,701

FY 2014

$27.92

2.5%

15,864,849 500,000

59,777,574

24,000,000

32,103,208

27,691,465 1,807,011 718,806 105,000 1,362,500 312,684 37,000 68,742 0

3.3%

3,674,366

FY 2015

$28.62

2.5%

16,487,768 550,000

50,452,606

33,281,358

28,619,018 1,880,860 740,371 105,000 1,400,000 429,159 37,000 69,950 0

3.4%

17,171,248

FY 2016

$29.34

2.5%

17,048,423 550,000

45,640,764

34,201,409

29,561,973 1,957,238 762,582 105,000 1,437,500 268,716 37,000 71,399 0

3.3%

11,439,355

FY 2017

$30.07

2.5%

17,738,153 550,000

65,982,073

24,000,000

35,507,006

30,520,607 2,038,005 785,459 105,000 1,475,000 474,294 37,000 71,641 0

3.3%

6,475,067

FY 2018

$30.82

2.5%

18,464,757 550,000

61,965,495

36,820,956

31,495,204 2,121,143 809,023 105,000 1,512,500 669,445 37,000 71,641 0

3.2%

25,144,539

FY 2019

$31.59

2.5%

19,230,524 550,000

57,315,582

37,830,444

32,542,296 2,207,957 833,294 105,000 1,550,000 483,256 37,000 71,641 0

3.4%

19,485,138

FY 2020

$32.38

2.5%

19,807,440 550,000

51,526,240

38,794,260

33,606,786 2,263,156 858,292 105,000 1,587,500 264,885 37,000 71,641 0

3.2%

12,731,980

FY 2021

$33.19

2.5%

Active Plan CIP

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

12,447,791

FY 2009

1.6 2.1

8,900,674

9,173,231

FY 2010

1.7 1.9

7,235,141

Pay-as-you-go

Bond Money Used

FY 2011 2,494,026 4,196,666 539,685 5,000 3,959,566 2,799,198 23,549

1.5 1.8

6,879,649

14,017,689

TOTAL CONSTRUCTION COSTS

Interceptor/Wet Weather Rehabilitation General Sewer Rehabilitation Pipe Rated Projects Unclaimed Sewer Rehabilitation Treatment Plant / Pump Stations Engineering Force Account Reimbursements Contingency Capital Improvement Program Totals 12,555,566

FY 2008

1.7 2.2

Debt Coverage (User Fees only) Debt Coverage with Total Revenue

May 1, 2011

10,090,081

Pay-as-you-go (Current Revenue only)

1.6 1.8

6,979,149

1.5 1.7

6,549,008

1.6 1.8

7,534,351

1.8 2.0

8,503,381

1.7 1.9

8,571,476

10-Year Capital Improvement Program

1.5 1.7

6,453,690

1.6 1.9

8,505,367

1.5 1.7

7,687,022

1.6 1.7

8,074,260

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

CASH BALANCE & REVENUE

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1,804,380 44,075 940,191 2,257,304 17,469 1,112,634 2,057,621 1,589,554 0 2,874,790 4,975,184 9,603,594 6,984,287 7,158,304 7,845,568 6,974,729 6,332,299 6,927,188 8,651,802 7,207,490 1,324,312 983,419 2,629,657 883,896 1,270,549 1,311,956 1,358,400 1,406,487 1,456,277 1,507,829 340,900 88,423 113,102 117,105 124,124 124,948 129,371 133,951 138,693 143,603 7,020,000 2,386,597 826,553 2,968,150 316,057 178,497 184,816 191,359 198,133 68,382 3,023,000 2,799,125 2,803,553 2,872,049 2,942,477 3,014,905 3,089,497 3,166,229 3,245,275 3,327,108 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,000,000 19,687,776 16,105,233 14,497,343 16,456,808 12,716,244 12,917,669 13,352,004 13,614,768 13,890,180 15,329,202

1.6 1.8

6,793,401

Debt Service 8,167,726 7,600,364 7,855,989 8,576,910 8,371,858 8,616,358 9,188,057 9,784,669 9,259,239 8,649,605 9,197,377 9,850,832 10,912,898 10,912,560 CIP (including Bond Projects) 12,555,566 12,447,791 9,173,231 14,017,689 19,687,776 16,105,233 14,497,343 16,456,808 12,716,244 12,917,669 13,352,004 13,614,768 13,890,180 15,329,202 Total Expenses 32,878,141 32,856,504 29,783,947 36,302,034 42,419,932 39,745,352 39,447,749 42,606,326 39,013,251 39,165,697 40,837,534 42,480,357 44,583,602 46,599,202 June 30 - Carry Over for Construction 29,669,151 25,496,310 42,331,200 34,943,160 21,698,785 12,122,701 3,674,366 17,171,248 11,439,355 6,475,067 25,144,539 19,485,138 12,731,980 4,927,039

Operations & Maintenance Replacement Funds (WRF & Fleet)

EXPENSES:

State and Federal (EPA) Grants Revenue Bonds/Stimulus

Domestic Users Industrial Users (No growth) Billing and Collections (User Fee) Tap Fees Facility Fees Interest & Non-operating Revenues City of Asheville (annex.-Enka) Rental Income Transfer from Reserves (to / from) Miscellaneous Total Revenues

REVENUE:

July 1- Available for Construction

Business Plan FY12 Budget

Cash Balance

Bond Issues

Revenue w/o Bonds

Pay-as-you-go

No growth in Industries Rate Parity for Flow in 2020

Target Debt Coverage 1.5

General Sewer Rehab to cover 50,000 lineal ft / year

ENR 10-year Construction Index @ 3.54%

3% inflation in O & M, Replacement Funds and Engineering Force Account

Bond Issues figured at: 5.0% yield FY15 5.5% yield FY18

0.5% Increase in FY11 0.75% Increase in FY12 0.75% Increase thereafter

Consumption and Account Growth

Minimum Carry-over for Construction $3,000,000

Assumptions

Average Monthly Bill

Sewer Rate Increase

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Budgetary Forecast Based on Current Business Plan

Page 14

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fiscal Policy

Overview The Metropolitan Sewerage District of Buncombe County, North Carolina (MSD or District) fiscal policies compiled below comprises the basic framework for the overall financial management of the District. These policies assist Board and Management decision‐making and provide guidelines for evaluating both current and long‐range activities and programs. They are reviewed annually in conjunction with the budgetary process to verify continued applicability and benefit to the District. The primary objectives of these policies are: (1) to ensure that moderate rate increases will be adequate to provide current and future funds to support the District’s mission and goals; and (2) to provide accountability for cost‐effective stewardship of ratepayer’s funds to stakeholders through fairly presented financial information supported by full disclosures.

Revenue Policy 1. Revenue Recognition: Revenues shall be recorded on the full accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary governmental entities. 2. Setting User Charges: Charges for domestic and industrial sewer users shall be set at such a level to provide sufficient revenues to cover all annual operating and debt service expenditures, to accumulate funds for timely acquisition and replacement of capital equipment and facilities, and to finance the pay‐as‐you‐go portion of the long‐term Capital Improvement Plan as approved by the Board. 3. Revenue Projections: To assist in setting annual user rate charges, District staff will prepare projections of revenues and expenditures for a minimum of five years. 4. Daily Deposits: In accordance with NC General Statues Section 159‐32, the Board shall require daily deposits of receipts only when the moneys on hand amount to at least two hundred fifty dollars ($250.00). Any funds not immediately deposited shall be appropriately safeguarded. 5. Monitoring Revenue: District staff shall monitor revenues as billed and collected by participating entities for reasonableness and completeness and shall report to the Board no less than quarterly. 6. Direct Billing: For those users who are billed directly by District staff, such bills shall be computed accurately, recorded properly, and distributed in a timely manner. 7. Billing Adjustments: The Billing Coordinator shall be authorized to create and post credit memoranda for adequately documented adjustments incurred by customers billed directly by the District. The Billing Coordinator may also make adjustments of up to $10 to correct errors or remove disputed charges. 8. Bad Debt: The District shall consider as bad debt any domestic revenue for customers when written off by the member agencies who provide collection services. All delinquent customer accounts billed directly by the District shall be subject to reasonable collection efforts. Policies & Budget Process

Page 15

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fiscal Policy (continued)

After such efforts have been exhausted, writing off uncollectible accounts shall be authorized as follows: the billing coordinator may write off amounts up to $10, the Director of Finance amounts up to $1,000, and the General Manager amounts over $1,000. The Director of Finance shall prepare an annual reporting of bad debts to be submitted to the Finance Committee. 9. Authority for Revenue Procedures: The Director of Finance shall be responsible for designing, implementing, monitoring, and amending as necessary, accounting procedures, including internal controls, for the billing, recording, and reporting of all revenues of the District in compliance with GAAP and State law. Any changes to revenue procedures will be reported to the Finance Committee at their next meeting.

Operating Budget Policy 1. Funding: Debt or bond financing will not be used to finance current expenditures. 2. Service Efforts and Accomplishments: MSD will integrate performance measures and productivity indicators into its budgetary process. 3. Planning: MSD will prepare a ten‐year operating budget projection, which will include projections of annual growth plus allowances for operating costs of new capital facilities. 4. Risk Management: MSD will utilize a risk management program to protect against loss and reduce exposure to liability. A comprehensive safety program shall be an integral component and will investigate property damage and workers’ compensation incidents to minimize liability and take proactive measures to reduce the number and severity of future claims. 5. Authority for Budget Procedures: MSD will prepare the budget in accordance with GAAP and the Local Government Budget and Fiscal Control Act (LGBFCA) established by the state legislature. 6. Periodic Reporting: The Finance Department shall submit quarterly budget to actual financial reports to the Board of Directors and monthly to Division Heads. 7. Balanced Budget: The District shall submit a balanced budget wherein budgeted expenditures shall equal budgeted revenues. Budgeted revenues may include transfers from another fund, reserves, or fund equity (available funds) defined as the excess of revenues over expenditures accumulated from prior years that are present in the form of cash at the beginning of the fiscal year.

Asset Management Policy 1. Planning for Operational and Maintenance Assets: MSD shall utilize an Equipment Replacement Review Committee to plan major operational and maintenance asset acquisitions on a systematic, comprehensive, and entity‐wide basis. Policies & Budget Process

Page 16

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fiscal Policy (continued)

2. Asset Condition: The District will maintain all assets at a level adequate to comply with all regulatory requirements and to minimize future replacement and maintenance costs. This process will be coordinated with the planning in the Capital Improvement Program.

Capital Improvement Policy 1. Planning: MSD will annually update and re‐adopt a ten‐year Capital Improvement Program, identifying and describing each capital project along with the estimated cost and funding source, in accordance with requirements of the State of North Carolina Collection System Permit. 2. Capitalization: MSD will charge engineering division salaries and related costs used to plan for and oversee construction of major infrastructure to the Capital Improvement Program. 3. Reporting: MSD will provide annual reports of expenditures by project to the Capital Improvement Program Committee. 4. Funding: MSD will fund the construction program from revenue bonds and current revenues including grants as available.

Accounting Policy 1. Authority for Accounting Procedures: MSD will establish and maintain the accounting system according to the North Carolina Local Government Budget and Fiscal Control Act (LGBFCA), generally accepted accounting principles (GAAP) for governments, and in compliance with applicable provisions in the Bond Order. 2. Annual Audit: An annual audit will be performed by an independent public accounting firm, which will issue an official opinion on the annual financial statements, and a management letter indicating any suggestions for improvement or areas of concern. 3. Transparency: Full disclosure will be provided in the financial statements and bond representations. 4. Due Diligence: MSD will monitor the audited financial statements of member agencies and compare with reports of revenues remitted to MSD and accounts receivable billed by member governments. 5. Financial Reporting: MSD shall prepare a comprehensive annual financial report (CAFR) upon completion of the financial audit, which will be submitted to the Government Finance Officers’ Association (GFOA) for the Certificate of Achievement for Excellence in Financial Reporting award. 6. Written Accounting Procedures: MSD will maintain currently updated written accounting procedures.

Policies & Budget Process

Page 17

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fiscal Policy (continued)

Debt Policy 1. Duration: Capital projects financed through the issuance of bonds shall be financed for a period not to exceed the lesser of the expected useful life of the project, or thirty years. 2. Capitalization: Interest, operating, and/or maintenance expenses will be capitalized only for facilities of enterprise activities and will be strictly limited to those expenses incurred prior to actual operation of the facilities. 3. Ratings: MSD will endeavor to maintain its financial condition at no lower than Moody’s “A1” and Standard & Poor’s “AA‐” bond rating. 4. Unfunded Liabilities: MSD’s debt policy extends beyond capital financing and includes not knowingly entering into any contracts creating significant unfunded liabilities. 5. Coverage Ratio: MSD shall prepare an annual budget to maintain a debt ratio (coverage) of at least 1.5 net revenues to bonded debt. This exceeds the minimum 1.2 ratio as set forth in the Bond Order. 6. Compliance: MSD shall follow terms and conditions of its Bond Order and any requirements of the Local Government Commission.

Cash Management and Investment Policy 1. Written Policy: The District Board’s investment policy, written to be in compliance with NC General Statutes and its Bond Order, shall be reviewed on an annual basis by the Board’s Finance Committee. 2. Objectives: The primary objectives of investment activities, in priority order, shall be preservation of principal, liquidity, and yield. 3. Periodic Reporting: MSD shall provide monthly investment reports to its Board and submit semi‐annual reports to the North Carolina Local Government Commission. 4. Treasury Services: MSD shall consider the advisability of preparing a Request for Proposal (RFP) for banking services every three (3) years.

Reserve Policy 1. Capital Reserves: MSD shall maintain a Capital Reserve Fund in the amount of 6% of current expenses in the adopted annual Operation & Maintenance Fund Budget as set forth in the Bond Order. This fund may be used only for debt service payments in the event of inadequate revenues or for unusual and extraordinary repair and maintenance expenses. 2. Fleet: MSD shall maintain a Fleet Equipment Replacement Fund for vehicles and rolling stock with a value greater than $10,000. Periodic budgeted transfers from the operating fund along with proceeds from sale of equipment shall be deposited in said fund along with interest earnings to provide funding to replace vehicles on a systematic basis as required. Policies & Budget Process

Page 18

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fiscal Policy (continued)

3. Plant Equipment: MSD shall maintain a Wastewater Treatment Equipment Replacement Fund for capital expenditures of $10,000 or more with a useful life of at least (3) years. Periodic budgeted transfers from operations are intended to stabilize rate increases by planning funding for major repairs and rehabilitations.

Purchasing Policy 1. Authority for Purchasing Procedures: MSD will follow procedures and guidelines as prescribed by North Carolina General Statutes and Board approved resolutions. 2. Centralized Procurement: MSD shall operate centralized purchase and warehouse functions to obtain materials, supplies, and services in the most cost‐efficient manner for the District.

Policies & Budget Process

Page 19

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Budget Process

Budgetary Adoption The District budget process must comply with North Carolina General Statutes and the MSD Revenue Bond Order as amended to date. The Bond Order requires that the District adopt its final budget on or before June 15 of each year. North Carolina General Statutes mandate an annual balanced budget ordinance based upon expected revenues, along with a budget message, to be presented to the governing board no later than June 1 and mandates a public hearing be held. The Bond Order calls for a preliminary budget hearing 30 days prior to adoption if requested by a certain percentage of bondholders. The budget calendar is designed to provide for input by all stakeholders into a systematic and deliberate process. For the Operations and Maintenance Budget, the process begins with the mission statement as approved by the Board. Each Division or section of the District develops a specific mission statement setting forth its role in supporting the overall mission of the District. Next, key responsibilities are defined for each unit, with associated goals and objectives. To evaluate progress, performance measures are identified and tracked for the previous three years. Once the District staff develops the operational activities required to implement the mission‐directed strategies, necessary resources can be quantified and presented in a budgetary format. Because payroll and benefits represent such a large proportion of expenditures, and because an experienced and appropriately compensated, well‐trained staff is necessary to accomplish the District’s mission, extra effort is made to ensure salaries and benefits are competitive without being excessive. To this end, a human resources consultant prepares a salary survey every three to five years that compares District pay scales with other utilities and governmental entities in the area. During those years a consultant is not retained, the Human Resources Director and other staff take surveys among regional governments and wastewater utilities of intended increases and types/levels of benefits considered. After reviewing comparative data, the Finance and Personnel Committees take an active role in ratifying increases of cost of living and merit pay, as well as contributions to health insurance and other employee benefit programs. Before approval of any new positions, the Board must be convinced of the cost‐benefit, efficiency, and programmatic benefit. The Capital Budget incorporates short‐term improvements mandated by the State‐issued Collection System Permit with long‐term needs identified and prioritized by the 20‐year Wastewater System Master Plan to handle wet‐weather flow conditions, to improve the performance at the wastewater treatment plant, and to prepare the system to handle expected future wastewater flows. Engineering staff prepare annual estimates of expenditures over the life of projects in a proposed timetable for construction in a 10‐year Capital Improvement Plan (CIP). Meanwhile, Administrative staff prepares an update of the District’s ten‐year financial forecast based on estimated revenues, expenditures, and debt issuance, which is integrated with the 10‐ year CIP, along with projections for fleet and wastewater plant replacement funds. Policies & Budget Process

Page 20

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Budget Process (continued)

The effect of current expenditures on cash flows and debt coverage ratios are verified for adequacy, and any indicated adjustments to expenditures are made to sustain services within the desired user rate levels, which are set annually in connection with budget adoption.

Budget Administration The Budget Resolution is adopted at the fund level and allows for the carry forward of encumbered contracts and purchase orders from the previous fiscal year. This budget book illustrates the initial allocations among departments and between line items for authorized expenditures not including carryover amounts. Authority for modifying these allocations varies. The General Manager has the authority to transfer amounts between departments within a fund without limitation. Division directors may transfer amounts between line items and sections within their departments without limitation. The entire allocation is available at the beginning of the year, and the unexpended balance will remain available during the year, unless otherwise limited by the General Manager and Director of Finance due to cash flow considerations. Several strategies are used to monitor expenditures throughout the year. The General Manager and Division Directors receive monthly expenditure reports, which compare actual to budgeted amounts for the period and for the year to date. In addition, the procurement software is designed to require approval from the General Manager or Director of Finance if the line item has insufficient funds to cover the requisition or if the expenditure is over a certain amount. Purchasing staff make periodic reviews of outstanding inventory levels, requisitions, and purchase orders to update available line item balances.

Budget Amendment Budget Amendments require approval by the Board of Directors and as such are submitted through the agenda process for consideration at a regularly scheduled Board meeting.

Policies & Budget Process

Page 21

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Budget Calendar

APRIL

D A T E

T I M E

S U B J E C T

 Cost of Living & Merit Pay

 Benefit Allocations

May 5

8:30 a.m.

 Update Construction Program Financing

 2011‐2012 Construction Fund Budget

April 28

2:00 p.m. Personnel Committee Meeting

MAY S

May 11

JUNE

CIP Committee Meeting  Update of Ten‐Year Capital Improvement Program

2:00 p.m. Finance Committee Meeting

 Nine Month Revenue/Expenditure Report

 Self‐Funded Medical & Dental Program

 Proposed FY12 Construction Fund Budget

 Proposed FY12 Operating Budget & Sewer Rates

 Preliminary FY12 Budgets & Sewer Rates

May 18

2:00 p.m. Board Meeting

June 15

JULY

2:00 p.m. Board Meeting

 Public Hearing

 Adoption of FY12 Budgets & Sewer Rates

July 1

Start of Fiscal Year 2011‐2012

Policies & Budget Process

Page 22

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Budgetary Basis of Accounting

The District accounts for its activities as an Enterprise Fund, which is similar to that of a private business where the costs of providing wastewater collection and treatment on a continuing basis are recovered primarily from user charges. Therefore, the accrual basis of accounting is used for financial reporting purposes, where revenues are recognized as soon as they are earned and expenses at the time the liability is incurred. However, state law requires local governments to budget on the modified accrual basis, wherein revenues are only recognized to the degree that they are available to finance expenditures of the current period. Similarly, debt service payments and other liabilities are recognized when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. There are no significant differences between the full and modified accrual basis of budgeting for District revenues, because the majority of revenues are collected shortly after billing, and as such, are available to pay period liabilities. The major difference resulting from the modified accrual method is noted in budgeting debt service and capital expenditures. The Bond Order requires the District to have remitted all debt service to the Trustee at least one business day prior to the payment date, so that in the event of default, the Trustee will have time to secure payment for the bondholders from the Debt Service Reserve Fund for payment on the due date. Therefore, the District budgets for the amount of principal due on July 1 of the subsequent fiscal year, but reports the principal reduction paid on July 1 of the current year as reducing loans payable in the audited financial statements. Capital outlays, which are defined as equipment or construction with an acquisition value over $1,000 and a useful life of three years or longer, are budgeted as an expense in the year incurred, but depreciation is not budgeted, as it does not involve expenditure of cash. In the audited financial statements, buildings and equipment over $15,000 are capitalized and depreciated over future years. The District does not budget for barter transactions such as the exchange of building space for laboratory services, but the fair market value of such transactions are reflected as income and expense in the audited financial statements in accordance with generally accepted accounting principles. The ten‐year Capital Improvement Plan presented in this budget manual documents the District’s long‐term asset management strategy to achieve and maintain compliance with state environmental permit conditions, but does not authorize expenditures for any years beyond the current budget year. The Capital Improvement Plan identifies specific projects with anticipated expenditures broken down by each year, but based on the best estimates of the District. The General Manager is authorized to accelerate or postpone the start date of any particular project and to authorize the encumbrance of funds for projects continuing into a future fiscal year, provided that the total amount of funds expended and encumbered for any one year does not exceed the total appropriation in the Construction Fund for that fiscal year. Policies & Budget Process

Page 23

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Budgetary Basis of Accounting (continued)

However, any projects included in a Capital Projects Ordinance may have expenditures authorized for the entire project crossing fiscal years, regardless of when contracts are signed or costs are incurred or paid. In accordance with the District’s Bond Order, separate accounts for debt service and extraordinary maintenance reserves have been established. The District utilizes other reserve accounts to minimize or moderate the effect of unanticipated large expenditures and substantial equipment replacement on rate increases.

Policies & Budget Process

Page 24

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fund Structure

For financial statement purposes, all the District’s transactions are reported in one enterprise fund. However, to be in compliance with the District’s Bond Order, which prescribes certain procedures for financial planning and budgetary process, the enterprise fund is divided into several funds. Appropriated major funds whose expenditures exceed 10% of the budget include: the revenue fund from which operational and maintenance expenditures are made, the general fund that transfers pay‐as‐you‐go funding authorized for construction, the construction fund that incorporates CIP expenditures, the insurance funds that provides funding for self‐funded employee medical, general liability, worker’s compensation and post employment, the replacement funds that provides funding for Fleet and WRF equipment and the debt service funds. Financial plans are prepared for other nonappropriated funds whose expenditures are determined by external parties and contractual agreements, namely the insurance funds, debt reserve, and the capital reserve fund.

 Revenue Fund: The Bond Order requires all revenues from user charges to be deposited to a revenue fund. The first order of payments is current expenses, defined as the costs of controlling, operating, managing, and maintaining the sewerage system and wastewater treatment plant, which are paid directly from the revenue fund. Remaining revenues may be transferred as budgeted to other funds for use in debt service, construction, or any other lawful purpose.  General Fund: The District may use funds from the General Fund for any lawful purpose. Due to the provisions of the 1985 and 1999 Bond Orders, the former which provided that operating expenses were to be paid from the O&M fund, and the latter which calls for current expenditures to be paid from the Revenue Fund, the General Fund has been used primarily to accumulate pay‐as‐you‐go financing for construction.  Construction Fund: This fund was established in accordance with the bond order to account for construction projects funded by sewer revenue bonds. The fund is currently used to record expenditures of capital construction, regardless of funding source.  Insurance Funds: Financial plans for the four insurance funds – Self‐Funded Employee Medical, General Liability, Worker’s Compensation, and Post Employment are included in the FY11 budget document. Each Department, Division, and Section budget is charged a proportionate share of employer insurance costs based upon the number of covered employees. Separate funds are maintained to track the excess or deficit of actual expenses over estimated cost. To ameliorate the effect of large unanticipated losses on the annual rate setting process, any excess of cost assessed over claims paid is retained by the fund as designated for any deficit in future years. There are no trust documents or other legal restrictions on these funds, and they are combined with other funds and accounts into one enterprise fund for financial reporting purposes. A brief discussion of each follows: Policies & Budget Process

Page 25

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fund Structure (continued)

 Self‐Funded Employee Medical: Revenues consist of both employee and employer

contributions. Expenditures include charges for stop‐loss and aggregate premiums, third party administration of claims, as well as medical, dental, and prescription claims. Employer contributions are currently based on actuarially determined expected funding, which is approximately 80% of potential maximum cost if stop‐loss and aggregate limits are reached. Prudent management of reserves should provide adequate funding for claims in excess of those anticipated, as well as for claims incurred during the year but paid after the year‐end outside of the aggregate coverage.  General Liability: The District purchases commercial coverage for Automobile, General

Liability, Public Officials Liability, and Employee Blanket Bond. Each year, the Engineer of Record reviews the adequacies of the Districts’ insurance coverage to comply with the District's Bond Order. Reimbursement for each loss is reduced by the amount of the particular coverage deductible, so the budgeted expenditure includes both contractual premiums and an estimate of the potential liability to be incurred from paying the deductible amount on each claim. Any excess of amounts transferred from the Operations and Maintenance Fund over premiums and deductibles expense is retained in the fund to be appropriated in a future year with unanticipated losses.  Worker’s Compensation: The District purchases commercial insurance coverage for

Worker’s Compensation. This policy also includes provisions for deductible amounts for each claim; so similarly, budgeted insurance expense includes both contractual premium and an estimate of deductible amounts. Any excess is retained in the fund to be appropriated in a future year in the event of unanticipated losses.  Post Employment: The District has established a post‐employment insurance fund to

accumulate funds now, which will reduce future operational expenditures when retirees begin taking advantage of this benefit. The District will annually fund the equivalent of the annual required contribution less expenses as determined by an actuarial study as required by GASB45.  Equipment Replacement Funds: Two equipment replacement funds are included with the

budget. Responsible departments are assessed proportional amounts to provide planned funding for the systematic replacement of assets and to moderate the impact in any one year on sewer rates from major capital acquisitions. Any excess of revenues over expenditures are retained in fund equity to provide for large future capital expenditures, and for replacement or repair of any mission‐critical equipment resulting from an accident, natural disaster, or other unforeseeable event.  Fleet Replacement: The District owns a variety of vehicles including pickup trucks,

specialized vans, dump trucks, tankers, and excavating equipment, some costing up to $250,000. The Fleet Supervisor and Administrative Services Director are responsible for maintaining an inventory of all equipment including anticipated replacement dates and Policies & Budget Process

Page 26

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fund Structure (continued)

costs for all items. Departments are assessed determined amounts in the annual budget, which are estimated to provide funding for new vehicles when those in their use may no longer be efficiently maintained.  Wastewater Treatment Plant: Various large pumps and specialized machinery require

replacement from time to time, usually at costs well in excess of what may be budgeted as routine maintenance. The Plant Director and Supervisors have prepared a schedule by year of anticipated major projects needed to refurbish or replace obsolete equipment. The plant maintenance department is assessed amounts in the annual operations budget estimated to provide adequate funding for these projects when needed in the future.  Debt Service Funds: These funds are required under the District’s Bond Order to accumulate

and transmit all District debt service payments.  Revenue Bond Fund: This fund is used to accumulate periodic deposits from the revenue

fund to pay principal and interest as scheduled.  Debt Service Reserve Fund: This account is maintained by the Bond Trustee at an annually

computed funding level as specified under the bond order. The purpose of this fund is to provide investors with immediate principal and interest payments in the event of default or other failure of the District to provide the trustee with adequate amounts via the Revenue Bond Fund.  Capital Reserve Fund: While technically not a debt service fund, this fund is mandated by

the Bond Order to contain six percent (6%) or such greater percentage, as may be determined from time to time by the Board, of the amount shown by the annual budget to be necessary for current expenses for the current fiscal year. As this fund is to be kept for unusual and unforeseen expenditures, none are included in the financial plan as coming from this account.

Policies & Budget Process

Page 27

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Flow of Funds – Bond Order User Charges, Rental Income & Misc.

Revenue Fund O&M paid from Revenue Fund

Insurance Funds Medical & Dental

Post Retirement

Worker’s Comp

Replacement Funds General Liability

Wastewater Treatment Plant

Fleet

Sale of Surplus Property

Employee Contributions

Capital Reserve Fund

Revenue Bond Fund Sinking Fund Account Capitalized Interest Account Interest Account Principal Account Redemption Account Parity Reserve Account

General Fund

Tap Fees Facility Fees Grants

Priority of expenditures per Bond Order 1. Current Expenditures 2. Debt Service 3. Capital Reserve 4. Any Lawful Purpose

Flow of Funding

Construction Fund

Income Sources Trustee Funds Expenditures

Flow of Funding if required for emergency repairs or maintenance

Policies & Budget Process

Page 28

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Budget Summary

The District utilizes a fund structure developed to accommodate mandates of the District’s Bond Order with generally accepted accounting principles for proprietary governments. Appropriated funds, which are those funds that must have a board‐approved budget, include the revenue fund from which operational and maintenance expenditures are made, the general fund that transfers pay‐as‐you‐go funding authorized for construction, the construction fund that incorporates CIP expenditures, replacement funds providing funding for fleet and WRF equipment, and debt service funds. Financial plans are approved for those other funds whose expenditures are determined by external parties or contractual agreements such as the insurance, debt reserve, and capital reserve funds. The budget summary chart below shows total activity for all funds and consolidates the effect of transfers between funds. FY 2010 Actual Total

FY 2011 Budget

FY 2012 Proposed Budget

Increase (Decrease)

Domestic User Fees Industrial User Fees Billing and Collection Facility and Tap Fees Interest and Misc. Income Rental Income City of Asheville (Enka Bonds) Employee Contributions to Health Fund Proceeds from Revenue Bonds Stimulus Loan/Grant Use of (Contributions to) Available Funds

$ 23,242,077 1,498,529 629,212 1,654,010 665,222 16,560 37,003 293,416 18,985,307 336,490 (17,052,235)

$ 23,654,586 1,562,644 645,243 903,750 929,201 16,560 37,000 368,361 ‐ ‐ 17,303,055

$ 25,030,400 1,602,660 657,810 1,355,000 601,064 67,872 37,000 460,079 ‐ ‐ 13,446,618

$ 1,375,814 40,016 12,567 451,250 (328,137) 51,312 ‐ 91,718 ‐ ‐ (3,856,437)

5.8% 2.6% 1.9% 49.9% ‐35.3% 309.9% 0.0% 24.9% N/A N/A ‐22.3%

Total Revenues & Financing Sources

$ 30,305,591

$ 45,420,400

$ 43,258,503 $ (2,161,897)

‐4.8%

Operations and Maintenance Construction Capital Equipment Bond Principal and Interest

$ 12,754,727 9,173,231 521,644 7,855,989

$ 13,926,160 22,156,071 760,400 8,577,769

$ 14,330,969 $ 404,809 19,687,776 (2,468,295) 867,900 107,500 8,371,858 (205,911)

2.9% ‐11.1% 14.1% ‐2.4%

Total Expenditures

$ 30,305,591

$ 45,420,400

$ 43,258,503 $ (2,161,897)

‐4.8%

% Change

REVENUES & FINANCING SOURCES

EXPENDITURES

NOTE: Both Operation and Maintenance and Capital Equipment expenditures represent actual amounts to be spent in the respective reserve funds. These amounts do not include current year reserve funds funding request.

Policies & Budget Process

Page 29

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Component Fund Chart

The following chart shows revenues, expenditures, and transfers by individual fund and provides the detail supporting the summary amounts. Operating and Construction

Equipment Replacement

Debt Services

Appropriated Funds

Revenue/O&M

General

Construction

Fleet Repl. Reserve

WWTP Reserve

Bond Service

Projected Net Assets at 6/30/11

28,115,106

6,261,729

980,425

577,095

729,072

5,733,000

42,396,427

Revenues and Other Financing Sources: Domestic User Charges Industrial User Charges Billing and Collection Fees Facility and tap fees Sale of Surplus Property Non‐governmental Grants Investment interest & misc. City of Asheville for Enka Bond Rental Income Employee Contributions Medical Total Revenues and Fin. Sources

25,030,400 1,602,660 657,810 ‐ ‐ ‐ 355,190 37,000 67,872 ‐ 27,750,932

‐ ‐ ‐ 1,355,000 ‐ ‐ 57,125 ‐ ‐ ‐ 1,412,125

‐ ‐ ‐ ‐ ‐ ‐ 12,500 ‐ ‐ ‐ 12,500

‐ ‐ ‐ ‐ 100,000 ‐ 7,214 ‐ ‐ ‐ 107,214

‐ ‐ ‐ ‐ ‐ ‐ 11,035 ‐ ‐ ‐ 11,035

25,030,400 1,602,660 657,810 1,355,000 100,000 ‐ 443,314 37,000 67,872 ‐ 29,294,056

Expenditures and Other Financing Uses Operating Expenses Debt‐‐Principal Debt‐‐Interest Construction Capitalized Equipment Expenditures Total Expenditures and Other Financing Uses

(11,190,785) ‐ ‐ ‐ (94,900) (11,285,685)

‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ 250 ‐ ‐ ‐ 250 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (4,954,825) ‐ ‐ ‐ (3,417,033) (19,687,776) ‐ ‐ ‐ ‐ (573,000) (200,000) ‐ (19,687,776) (573,000) (200,000) (8,371,858)

Interfund/account transfers

(22,521,471) (7,620,069) 18,695,069 300,000 50,000 8,371,858 (2,724,613)

Excess (Deficit) of Revenues over Expenditures

(6,056,224) (6,207,944) (980,207) (165,786) (138,965) 250 (13,548,876)

Projected Net Assets at 06/30/12

22,058,882 53,785 218 411,309 590,107 5,733,250 28,847,551

(11,190,785) (4,954,825) (3,417,033) (19,687,776) (867,900) (40,118,319)

Funding comes primarily from the Revenue Fund, from which Operations and Maintenance expenditures are paid. Revenues are transferred to other funds, including construction, insurance internal funds, debt service and replacement reserve funds. Infrastructure over $15,000 is capitalized and budgeted through the Construction Fund. Capitalized equipment such as trucks and rolling stock are budgeted through the Fleet Replacement Fund and capitalized equipment such as pumps and plant machinery are budgeted through the Water Reclamation Facility Replacement Fund. While the O&M budget contains line items entitled “Capital Equipment”, while such expenditures are below the capitalization threshold, they are in excess of $1,000 and budgeted and tracked internally for managerial purposes.

Policies & Budget Process

Page 30

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Component Fund Chart (continued)

The net assets of non‐appropriated funds are decreasing because as debt principal is repaid, amounts held in the debt service reserve, which are based on a percentage of outstanding debt, correspondingly are reduced, and may be transferred to the general fund. Designated for Insurance Insurance Medical

Insurance Post Employment

Insurance Prop & Liab

Held by Bond Trustee Insurance Work Comp

Debt Reserve

Non‐ Appropriated

Capital Reserve

Budget Summary District Totals

Projected Net Assets at 6/30/11

639,990 26,517

326,389 263,763 2,630,265 823,750 4,710,674 47,107,101

‐ ‐ ‐ ‐ ‐ ‐ 3,500 ‐ ‐ 460,079 463,579

‐ ‐ ‐ ‐ ‐ ‐ 6,000 ‐ ‐ ‐ 6,000

‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ ‐ ‐ 1,000

‐ ‐ ‐ ‐ ‐ ‐ 35,000 ‐ ‐ ‐ 35,000

‐ ‐ ‐ ‐ ‐ ‐ 11,250 ‐ ‐ ‐ 11,250

‐ ‐ ‐ ‐ ‐ ‐ 57,750 ‐ ‐ 460,079 517,829

25,030,400 1,602,660 657,810 1,355,000 100,000 ‐ 501,064 37,000 67,872 460,079 29,811,885

Expenditures and Other Financing Uses Operating Expenses Debt‐‐Principal Debt‐‐Interest Construction Capitalized Equipment Expenditures Total Expenditures and Other Financing Uses

(2,181,534) ‐ ‐ ‐ ‐ (2,181,534)

(211,500) ‐ ‐ ‐ ‐ (211,500)

(577,150) ‐ ‐ ‐ ‐ (577,150)

(170,000) ‐ ‐ ‐ ‐ (170,000)

‐ ‐ ‐ ‐ ‐ ‐

‐ (3,140,184) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (3,140,184)

(14,330,969) (4,954,825) (3,417,033) (19,687,776) (867,900) (43,258,503)

Interfund/account transfers

1,717,936 211,500 599,439 195,738 ‐ ‐ 2,724,613 ‐

Excess (Deficit) of Revenues over Expenditures

(19) 6,000 23,289 26,738 35,000 11,250 102,258 (13,446,618)

Projected Net Assets at 06/30/12

639,971 32,517 349,678 290,501 2,665,265 835,000 4,812,932 33,660,483

Now that the Districts' financial overview has been presented, we will examine revenues and various expenditures in greater detail.

Policies & Budget Process

Page 31

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

BUDGET T DOCUMENT – FY2012

Revenu ue

Overview w The District has the aauthority to e establish rattes and charrges for servvice to be approved by a budget resolution of the District Board d of Directo ors. The Di strict has eestablished separate raates for domesticc and industtrial custome ers, adopted d a schedulee of facility and tap feees applying to new customerrs, and receiives minor amounts of income from m rental of reeal propertyy and investm ment of surplus cash. The varrious types of revenuess and other financing so ources are d described in greater detail on the followin ng page. A graph of historicaal revenues by type revveals the ovverwhelmin ng percentagge of the D District’s d from m domestic (residential & commerccial) custom mers and hass increased for the income derives past nine e consecutivve years. Ind dustrial userr fees clearlly show the effect of th he shrinkingg textile industry iin Buncombe County an nd are diminishing as largger industriees wind dow wn and are reeplaced with smaaller new enterprises. Faacility and taap fees testtify to the grrowth fueled by populaation in‐ migration n and expan nsion of non‐industrial ttype businessses. The deecline of inveestment inccome FY 10 will co ontinue in FYY11. Overall, income for FY11 is estim mated to bee slightly high her than in FFY10.

Policies & B Budget Processs

Page 32

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

BUDGET T DOCUMENT – FY2012

Revenu ue (continueed)

Revenue Summary

When prrojecting FY12 revenue es, a 3.0% domestic d cuustomer ratte increase was considered in conjunctiion with a prrojected .75% increase d domestic connsumption. In addition, the budget reflects no growtth in industrrial users. Co onservative assumption s based on recent income trends u underlie other bud dgeted incom me amountss as explaine ed below.

Domesticc User Charrges The prim mary source of District revenues are domesticc charges. TThe District has approxximately 49,000 acccounts. The e District dirrect bills approximatelyy 350 of theese domesticc users all o of which are on private p well systems bu ut are conn nected to M MSD's sewerr collector ssystem. Billiing and collection n of the rem mainder of District dome estic custom mers is performed by thee member aagencies providingg water, who o charge a fe ee for this service, whicch is added tto the montthly bill and paid by MSD custtomers. Domesticc sewer rate increases fo or the past fiive years aree shown belo ow: 200 2011‐20 06‐07 2007‐08 2 2008‐09 2009‐22010 2010‐2011 012 4..5% 4.0% 3.0% 3.755% 3.5% 3.0% % Policies & B Budget Processs

Page 33

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Revenue (continued)

Industrial User Charges Prior to FY 2001, industrial users were charged decreasing tiered rates based on total volume so that actual rates charged were considerably below those paid by residential consumers. In FY 2001, the Board approved a plan to achieve rate parity between industrial and residential customers over the upcoming twenty years. The annual increases from this parity plan are incorporated in adopted rates. Industrial revenue has been declining over several years as local industrial facilities contracted operations or closed. The FY12 estimated industrial revenue is expected to increase marginally compared to FY11. Fortunately, the number of new residential customers continues to increase which is anticipated to mitigate the impact from the decline of industrial revenue.

Investment Interest This revenue source reflects interest earned on public funds held by the District and the Revenue Bond Trustee. Investment income is determined by interest rates and cash balances available for investment. Interest rates decreased rapidly during the current year due to adverse economic conditions. The projected yield for the current fiscal year will be 1.5%. All MSD investments conform to its Bond Order and the North Carolina General Statutes governing investments, and due to the minimum acceptable level of risk, produce fairly conservative rates of return.

Facility Fees This revenue source represents the buying of equity in completed wastewater facilities paid by consumers who are added to the sewer collection system. In June 2006, the actual cost was determined to be significantly greater than the fee charged. To moderate the impact on customers, the board determined to implement 20% of this increase over each of the subsequent five years. In FY10, the District instituted a one‐year moratorium on the five‐year sewer facility fee parity plan due to the recession. As of the end of FY11, the District has completed four years of the aforementioned plan. Effective in FY12, sewer facility fees range from $670 to $2,500 for residential users based on size of structure, and from $2,500 to $237,500 for nonresidential customers based on meter size.

Tap Fees This revenue source represents the cost of physically installing new connections to the sewer system. Tap charges were last changed in June of 2007. The cost for installing a tap is $650, with additional charges up to $2,200 if pavement disturbance involved. Policies & Budget Process

Page 34

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Revenue (continued)

Billings & Collections The District will pay the municipalities $2.14 per customer bill for meter reading, billing and collection services.

Rental Income Buncombe Count Partnership for Children has entered into a lease to utilize the District’s former Administration Building. The lease is for the period of five years starting October 1, 2010. The District also leases land to a private company for a cell tower.

City of Asheville (Enka Bonds Annexation) In the Consolidation Agreements, MSD agreed to assume debt service on the $1,500,000 sanitary sewer bond issued by the Enka‐Candler Water and Sewer District. This debt was used to pay a part of constructing the sewer system in Enka‐Candler, which at that time was located in an unincorporated area of western Buncombe County. After the consolidation, the City of Asheville annexed a portion of the Enka‐Candler Sewer District, so the City of Asheville reimburses the District for its proportionate amount (41%) of the annual principal and interest payment.

Policies & Budget Process

Page 35

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

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Policies & Budget Process

Page 36

OperaĆ&#x;on & Maintenance

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Operation & Maintenance Fund

Organizational Chart Ratepayers of the Metropolitan Sewerage District

MSD Board Committees Co nstruction CIP Finance Personnel Planning Right of Way

Legal Counsel Ro berts & Stevens

Auditing Firm Cherry Bekaert & Holland

Engineer of Record McGill Associates

Executive Secretary So ndra Honeycutt General Manager Tho mas E. Hartye, P.E. (# of employees: 2) Budget: $1,483,591

Director of Administrative Services Peter Weed

Director of CIP Ed Bradford, P.E.

Director of Financial Services W. Sco tt Powell

Director of Human Resources James Hemphill

Administrative Services

CIP

Financial Services

Human Resources

Fleet Maintenance Financial Forecasting IT MIS

Project Management Design & Drafting Right of Way Construction GIS

Finance & Budget Accounting & Investments Purchasing Warehouse

Human Resources Environmental Health & Safety Payroll & Benefits

(# of employees: 12) Budget: $1,803,546

(# of employees: 20) Budget: $2,311,488

(# of employees: 8) Budget: $686,199

(# of employees: 4) Budget:$687,434

Director of Planning & Development Stan Bo yd, P.E.

Planning & Development Allocations Taps Sewer System Expansion

(# of employees: 8) Budget: $735,407

Director of System Services Barry Coo k

System Services Construction Preventative Maintenance Technical Services

(# of employees: 57) Budget: $4,700,623

Director of Water Reclamation Jo hn Kiviniemi

Wastewater Treatment Services Operations Electrical Maintenance Mechanical Maintenance Industrial Waste Building Trades (# of employees: 39) Budget: $6,013,055

Total Number of Employees = 150 Employee/Representative Contractors

Operation & Maintenance

Page 37

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Operation & Maintenance Fund (continued)

Overview The Operation & Maintenance Fund budget finances the program and administrative activities for the wastewater treatment plant, pump stations, and collection system. The FY12 Operation & Maintenance Fund budget totals $14,360,298. This represents a 2.79% increase over the previous year. The District budgets to the Departmental level are as follows: Office of the General Manager $ 1,483,591 Human Resources $ 687,434 Administrative Services $ 1,803,546 Financial Services $ 686,199 Wastewater Treatment Plant Division $ 6,013,055 System Services Division $ 4,700,623 Planning & Development $ 735,407 Capital Improvement $ 2,311,488 Total Expenditures $18,421,343 Less: Capitalized in Construction Funds ( 4,061,045) Net Operation & Maintenance Fund $14,360,298 ACTUAL

APPROVED

ESTIMATED

2009‐2010

2010‐2011

BUDGET

ACTUAL

PROPOSED 2011‐2012 BUDGET

INC(DEC) OVER PRIOR YR BUDGET

SALARIES & WAGES

$ 7,336,254 $ 7,657,314 $ 7,617,151

BENEFITS

2,900,147 3,250,830 3,243,721

POST‐EMPLOYMENT HEALTH BENEFIT

222,000 232,000 232,000

MATERIALS, SUPPLIES & SERVICES

5,127,763 5,897,231 5,673,283

REPLACEMENT FUNDS & TRANSFERS

779,154 720,000 720,000

CAPITAL EQUIPMENT

159,600 179,299 171,154

SUB‐TOTAL O&M FUND LESS:

$ 16,524,918 $ 17,936,674 $ 17,657,309

Capitalized Construction Expenses NET OPERATION & MAINTENANCE FUND

$ 7,904,105 3,456,152 211,500 5,991,763 762,923 94,900 $ 18,421,343

$ (3,761,211) $ (3,966,528) $ (3,949,874) $ (4,061,045) $ 12,763,707 $ 13,970,146 $ 13,707,435

$ 14,360,298

3.22% 6.32% ‐8.84% 1.60% 5.96% ‐47.07% 2.70% 2.38% 2.79%

The major factors that impact our operating and maintenance budget include:

1. Repairs and Maintenance: A majority of the District’s 900 miles of collection lines are

between thirty and one hundred years old. While many capital projects are planned and in process, these aging facilities often require frequent repairs and maintenance costs prior to commencement of a major rehabilitation funded in the CIP. The Asset Management Plan calls for periodic maintenance and repairs. The District has budgeted significant amounts for maintenance of equipment, buildings, and grounds as well as for in‐house sewer line repair and maintenance. Operation & Maintenance

Page 38

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Operation & Maintenance Fund (continued) 2. Salaries and Benefits: A 1.5% cost of living adjustment is included, a $775 lump sum payment

per employee as well as a 7.5% increase for the self‐funded health insurance plan. In FY12, the Local Governmental Employees’ Retirement System increased the required funding from 6.45% to 6.96%. Personnel costs represent over 60% of the operating and maintenance budget. 3. Post‐Employment Health Benefit: Starting in FY09, GASB45 requires the recognition of cost for

Post‐Employment Health Benefits. Current funding represents 1.5% of total operations.

Operation & Maintenance

Page 39

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – All Departments Summary ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 7,063,379 $ 205,311 $ 7,268,690

$ 7,109,264 $ 226,990 $ 7,336,254

$ 7,390,103 $ 267,211 $ 7,657,314

$ 7,353,940 $ 263,211 $ 7,617,151

$ 7,636,155 $ 267,950 $ 7,904,105

3.33% 0.28% 3.22%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 355,646 $ 528,996 $ 1,303,778 $ 147,000 $ 6,600 $ 283,972 $ 2,625,991

$ 358,566 $ 536,317 $ 1,518,901 $ 193,800 $ 6,853 $ 285,709 $ 2,900,147

$ 492,784 $ 585,764 $ 1,598,079 $ 195,738 $ 9,800 $ 368,665 $ 3,250,830

$ 490,211 $ 582,711 $ 1,598,079 $ 195,738 $ 8,500 $ 368,482 $ 3,243,721

$ 551,705 $ 604,660 $ 1,717,936 $ 195,738 $ 9,800 $ 376,313 $ 3,456,152

11.96% 3.23% 7.50% 0.00% 0.00% 2.07% 6.32%

51325 Pos t Re ti re me nt I ns ura nce

$ 212,000

$ 222,000

$ 232,000

$ 211,500

‐8.84%

TOTAL SALARIES, WAGES & BENEFITS

$ 10,106,681

$ 10,458,401

$ 11,140,144

$ 11,092,872

$ 11,571,757

3.87%

MATERIALS, SUPPLIES & SERVICES 52010 Adve rti s i ng 52050 Due s & Subs cri pti ons 52100 Pos ta ge 52150 Tra ve l , Me e ti ngs & Tra i ni ngs 52160 Tui ti on As s i s ta nce 52170 Di re ctor's Fe e s & Expe ns e s 52180 I ns ura nce 52200 Te l e phone & Te l e fa x 52210 Communi ca ti ons (othe r tha n te l e phone ) 52240 Uni forms 52250 Offi ce Suppl i e s 52260 Spe ci a l De pa rtme nta l Suppl i e s 52270 Sa fe ty Equi pme nt/Suppl i e s 52280 Suppl i e s /Sma l l Tool s 52290 Che mi ca l s 52300 Li ne Cl e a ni ng & Suppl i e s 52330 Le ga l Fe e s 52350 Profe s s i ona l /Contra ctua l Se rvi ce s 52400 Re pa i rs ‐ Offi ce Equi pme nt 52410 Ma i nte na nce ‐ Bl dgs . & Ground 52420 Ma i nte na nce Equi pme nt 52430 La nds ca pe Re s tora ti on 52440 Pump Ma i nte na nce 52450 Equi pme nt Re nta l 52460 Motor Fue l & Lubri ca nts 52470 Outs i de Ve hi cl e Ma i nte na nce 52500 Re nts & Le a s e s 52510 Pe rmi ts & Fe e s 52650 Uti l i ti e s 52690 Fre i ght 52715 Sa fe ty I nce nti ve Progra m 52720 He a l th Fa i r 52725 We l l ne s s Progra m 52730 Empl oye e As s i s ta nce Progra m 52900 Othe r Ope ra ti ng Expe ns e s 52910 Non‐Ca pi ta l Equi pme nt 52915 Copi e rs , Pri nte rs & Fa xe s 52920 Bi l l i ng & Col l e cti ons 52990 Conti nge ncy TOTAL MATERIALS, SUPPLIES & SERVICES

$ 25,876 $ 30,177 $ 12,395 $ 100,081 $ 3,802 $ 28,815 $ 581,866 $ 20,907 $ 78,435 $ 59,084 $ 25,083 $ 363,103 $ 38,514 $ 100,158 $ 332,646 $ 49,836 $ 41,673 $ 621,331 $ ‐ $ 129,181 $ 407,620 $ 10,397 $ 26,149 $ 17,604 $ 177,468 $ 8,548 $ 27,727 $ 130,249 $ 1,204,769 $ 6,121 $ 1,912 $ 3,022 $ 12,405 $ 4,387 $ 1,296 $ 73,656 $ 5,716 $ 620,247 $ ‐ $ 5,382,253

$ 25,670 $ 28,048 $ 10,509 $ 97,757 $ 3,577 $ 28,863 $ 593,504 $ 24,725 $ 75,954 $ 57,230 $ 23,390 $ 347,618 $ 43,224 $ 108,289 $ 412,455 $ 68,303 $ 35,903 $ 504,503 $ 7 $ 117,700 $ 397,006 $ 8,994 $ 43,120 $ 7,506 $ 161,829 $ 7,521 $ 24,819 $ 119,687 $ 1,016,747 $ 3,491 $ 1,947 $ 3,326 $ 14,350 $ 4,255 $ 2,111 $ 68,370 $ 6,240 $ 629,212 $ ‐ $ 5,127,763

$ 38,745 $ 55,851 $ 12,000 $ 125,086 $ 6,000 $ 50,000 $ 599,439 $ 27,300 $ 109,400 $ 75,024 $ 31,898 $ 370,530 $ 40,000 $ 121,000 $ 471,372 $ 63,900 $ 44,933 $ 597,735 $ ‐ $ 142,100 $ 475,476 $ 13,000 $ 40,000 $ 22,000 $ 203,000 $ 7,500 $ 30,500 $ 152,250 $ 1,225,000 $ 5,000 $ 2,000 $ 4,000 $ 7,500 $ 5,749 $ 7,500 $ 55,701 $ 13,500 $ 645,243 $ ‐ $ 5,897,231

$ 37,245 $ 54,856 $ 12,000 $ 105,535 $ 4,000 $ 30,000 $ 599,439 $ 24,740 $ 99,040 $ 69,709 $ 28,000 $ 355,812 $ 40,000 $ 110,900 $ 438,850 $ 56,250 $ 36,675 $ 569,675 $ ‐ $ 142,100 $ 448,175 $ 11,500 $ 38,000 $ 16,000 $ 200,000 $ 7,500 $ 26,000 $ 128,700 $ 1,225,000 $ 4,500 $ 1,950 $ 3,326 $ 7,250 $ 4,500 $ 6,000 $ 51,906 $ 12,000 $ 645,000 $ ‐ $ 5,652,133

$ 36,750 $ 56,150 $ 12,000 $ 121,464 $ 4,500 $ 40,000 $ 599,439 $ 27,300 $ 111,300 $ 73,650 $ 29,700 $ 364,700 $ 40,000 $ 112,000 $ 470,000 $ 63,900 $ 46,500 $ 536,965 $ ‐ $ 144,000 $ 460,650 $ 13,000 $ 40,000 $ 29,000 $ 275,000 $ 7,500 $ 32,500 $ 153,250 $ 1,330,000 $ 4,800 $ 2,000 $ ‐ $ 10,875 $ 6,500 $ 6,900 $ 58,160 $ 13,500 $ 657,810 $ ‐ $ 5,991,763

‐5.15% 0.54% 0.00% ‐2.90% ‐25.00% ‐20.00% 0.00% 0.00% 1.74% ‐1.83% ‐6.89% ‐1.57% 0.00% ‐7.44% ‐0.29% 0.00% 3.49% ‐10.17% ‐ 1.34% ‐3.12% 0.00% 0.00% 31.82% 35.47% 0.00% 6.56% 0.66% 8.57% ‐4.00% 0.00% ‐100.00% 45.00% 13.06% ‐8.00% 4.42% 0.00% 1.95% ‐ 1.60%

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ 220,062 $ 200,000 $ 200,000 $ 620,062

$ 479,154 $ 100,000 $ 200,000 $ 779,154

$ 470,000 $ 200,000 $ 50,000 $ 720,000

$ 412,923 $ 300,000 $ 50,000 $ 762,923

‐12.14% 50.00% 0.00% 5.96%

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ 225,724 $ 9,405 $ 30,115 $ 265,243

$ 130,512 $ 5,486 $ 23,602 $ 159,600

$ 89,899 $ 42,000 $ 47,400 $ 179,299

$ 85,254 $ 40,900 $ 45,000 $ 171,154

$ 16,350 $ 20,750 $ 57,800 $ 94,900

‐81.81% ‐50.60% 21.94% ‐47.07%

SUB‐TOTAL O&M FUND

$ 16,374,238

$ 16,524,918

$ 17,936,674

$ 17,636,159

$ 18,421,343

2.70%

$ (2,269,403) $ (1,147,214)

$ (2,557,474) $ (2,764,151) $ (1,203,737) $ (1,202,377)

$ (2,747,497) $ (1,202,377)

$ (2,747,424) $ (1,313,621)

‐0.61% 9.25%

$ 12,957,621

$ 12,763,706

$ 13,686,285

$ 14,360,298

2.79%

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

$ 13,970,146

Page 40

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Line Item Descriptions

51100

Salaries & Wages

This includes salaries & wages for 150 department personnel. Also includes a Cost of Living increase of 1.5% and a Lump Sum Payment of $775.

51150

Overtime

This includes compensation as necessary for non‐exempt personnel.

51200

NC Retirement

The District contributes 6.98% of gross salaries and wages to the North Carolina Local Government Employees' Retirement System. The employees contribute an additional 6.00% through payroll deduction, but the employee portion is not budgeted, as it is not an expense of the District.

51250

Payroll Taxes

The District contributes 6.20% of gross salaries and wages to Social Security and 1.45% for Medicare as the employer share. The employees contribute equal amounts through payroll deduction, but this is not included in the budgeted amount.

51300

Medical, Dental & Life

This includes the employer allocation of the self‐funded employee medical and dental program.

51325

Post‐Employment Insurance Began last fiscal year, the District implemented GASB Statement No. 45: Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. Included are postretirement benefits other than pension, for example, medical, dental, and vision.

51350

Worker’s Compensation

This includes the allocation of worker's compensation premiums and deductible costs.

51450

51500

Automobile Allowance The District has authorized certain management personnel to receive an automobile allowance for the use of their personal vehicle in conducting District business.

401(k)

The District contributes up to 5.0% of matching contributions based upon the level of employee participation in the 401(k)‐retirement plan. A professional investment institution administers this as contracted with the North Carolina Retirement System.

52010

Advertising

This includes newspaper ads for vacant positions, quarterly informational reports, and mandatory public SSO notices. In addition, the advertising account covers Annual Report and System Performance Annual Report distribution, door hangers and any other miscellaneous communications from the District to the public.

52050

Dues & Subscriptions

This includes memberships to professional organizations and subscriptions to water utility periodicals, local newspapers, etc.

Operation & Maintenance

Page 41

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Line Item Descriptions (continued)

52100

Postage

This includes the charges for mailing of all official correspondence.

52150

Travel, Meetings & Training

52160

52170

This includes attendance at regional, state, and national professional associations and various continuing education requirements including supervisory training, skill‐based pay training, operators seminar, etc.

Tuition Assistance This includes pre‐authorized monetary assistance to employees who take educational courses that directly relate to their positions at MSD.

Director’s Fees & Expenses This includes all costs pertaining to the Board of Directors such as stipends, meeting expenses, and travel to national water and wastewater conferences.

52180

Insurance

This represents allocation of general liability insurance premium and deductible costs.

52210

Communications (other than land‐line telephone)

This includes charges for cellular telephones, mobile radios, and pagers.

52240

Uniforms This includes charges for the purchase of work shirts, pants, outerwear, safety boots and other related items, as well as the rental and cleaning of certain uniforms.

52250

Office Supplies

This includes paper, printing charges, and other miscellaneous office‐related supplies.

52260

Special Departmental Supplies

This includes specialty paper, bindery supplies, and printing services for employee manual, index tabs, ID badges, film, film developing, business cards, and vellum.

52270

Safety Equipment/Supplies

This includes goggles, vests, trench‐shoring equipment, gas monitors, and related items to prevent work‐related injuries

52280

Supplies/Small Tools

This includes thermometers, chainsaw blades, drill bits, gloves, miscellaneous hand tools, axes, shovels, tape measures, batteries, sewer tape, paint and paint brushes, etc.

52290

Chemicals

This includes all chemicals used in the treatment of wastewater.

52300

Line Cleaning & Supplies

This includes chemicals, rat bait, nozzles, hose, root cutters & replacement rods, root killer, degreaser, etc.

Operation & Maintenance

Page 42

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Line Item Descriptions (continued)

52330

Legal Fees

This includes professional services of the District’s attorney for various matters not related to capital projects.

52340

Debt Administration Fees

52350

52400

This includes trustee fees, liquidity facility fees for variable debt, arbitrage calculation fees, and incidental expenditures incurred by the Bond Trustee.

Professional & Contractual Services

This includes external audit fees, building security, emissions testing, effluent analysis, testing of samples, service contract on pumps, lab instrumentation, emergency line repairs, plumbing repairs, tree service, fence service, software annual support fees, and other outsourced services.

Repairs –Office Equipment

This includes charges for repairs of various office equipment not under a maintenance agreement.

52410

Maintenance – Bldgs. & Grounds

52420

52430

This includes janitorial fees, outsourced repairs, mowing services and landscaping supplies, and elevator inspections.

Maintenance – Equipment This includes maintenance expense on the forklift and pallet jack for the Purchasing/Warehouse Division, maintenance and repair of various equipment items, such as gas detectors, chlorinators, parts and repairs for the camera equipment, cable, pumps, and various other maintenance of non‐vehicular equipment.

Easement Restoration

This includes manholes, rims & lids, blacktop patch and concrete materials, asphalt & concrete work, pipe, couplings, adapters, straw, grass seed, mulch, pine needles and plants required to recover excavated areas, etc.

52440

Pump Maintenance

This includes all parts and supplies necessary to maintain all MSD pumps.

52450

Equipment Rental

This includes the rental of equipment used occasionally like chippers and bulldozers.

52460

Motor Fuel and Lubricants

This includes gasoline, diesel fuel, motor oil, brake fluid, and similar supplies to operate and maintain the District fleet of trucks, vans, and heavy equipment.

52470

Outside Vehicle Maintenance

This includes expenditures paid to factory‐authorized dealer service departments or similar enterprises to perform needed repairs to vehicles beyond the capabilities of the District’s in‐ house fleet maintenance employees.

Operation & Maintenance

Page 43

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Line Item Descriptions (continued)

52500

Rents & Leases

This includes the rental of any equipment for the treatment plant, and operating leases for copiers and other office equipment.

52510

Permits & Fees/Software Licenses

This includes charges for annual radiation license, stormwater permit, lab certification renewal, state operating permits, air permit, City of Asheville pavement cutting permits, and MSD manholes raised by the City during their paving programs and water usage by preventative maintenance trucks.

52650

Utilities

This includes charges for electricity, gas, water, and trash collection.

52690

52715

Freight This includes freight charges ONLY for items that are not clearly and easily defined as pertaining to a certain division and/or line item(s).

Safety Incentive Program

Rewards to employees for compliance with safety rules and procedures are distributed by the Safety Officer based upon observations during routine and surprise inspections.

52720

Health Fair

52725

This includes costs for physical examinations and lab work, facility rental, refreshments, and supplies for annual employees’ health fair.

Wellness Program

One of the ways the District attempts to manage costs for self‐funded health insurance plan is to encourage employees to achieve and maintain healthy lifestyles. Wellness program costs include education, fitness equipment, and auxiliary supplies.

52730

Employee Assistance Program

52910

The District contracts with an agency to provide resources for dealing with employee performance issues to assist management.

Non‐Capital Equipment This includes any item under $1,000 consisting of various tools and assorted information technology components such as computers or monitors. Details are presented in the appendix.

52915

Copiers, Printers and Faxes

This includes routine supplies and purchase of any machines under $1,000.

52920

Billing & Collections

This represents the billing and collection of sewer charges by the member agencies.

53040

Fleet Equipment Replacement Fund

This includes the proposed annual funding for the future acquisition of vehicles, trucks, and trailers. Current acquisition of replacement vehicles is budgeted in the replacement fund itself.

Operation & Maintenance

Page 44

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Line Item Descriptions (continued)

54010

Capital Equipment ‐ New

This includes requests for new equipment over $1,000 or more and having a useful life of three years or longer. See the appendix for details.

54020

Capital Equipment – Software

54030

This includes license and other nonrecurring software charges of at least $1,000 and having a useful life of three years or longer. See the appendix for details.

Capital Equipment ‐ Replacement

This includes requests for replacement equipment over $1,000 or more and having a useful life of three years or longer. See the appendix for details.

59200

Chargebacks to Construction Fund

Direct labor and materials costs incurred to acquire right‐of‐ways, design, plan and monitor construction projects budgeted in the Systems Services, Engineering Services, and Capital Improvement departments are transferred to the capital projects fund to be included in the capitalized cost of self‐constructed assets.

Operation & Maintenance

Page 45

BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Office of the General G l Manag ger

Organizattional Chart General Manager M Thomas E. Hartye, H P.E.

Exec cutive Secrettary So ondra Honeycu utt

Operation & & Maintenancce

Page 46

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Office of the General Manager (continued)

Mission Statement The mission of Office of the General Manager is to provide overall direction, leadership and coordination of the District and Department activities to ensure that the most efficient and effective services possible are provided within the policies established by the District’s Board of Directors and the resources authorized.

Key Responsibilities Carry out policies and directives of the Board. Monitor and control resources to ensure that the District is operated in a responsible and cost‐efficient manner. Operate and maintain a reliable wastewater, collection, and treatment system. Maintain effective communications and relationships with member agencies and the public. Maintain positive media relations through news releases and prompt, accurate responses to media inquiries. Represent MSD in various meetings, forums, and special events. Oversee intermediate and long‐range planning. Review and submit the board and committee agenda items; prepare minutes for board meetings; coordinate travel arrangements for board members and staff; provide public relations assistance.

Accomplishments for FY 2010‐2011 1. 2. 3. 4. 5. 6.

Awarded the Excellence in Management Award by NACWA 2008‐2011. Completed ISO 14001 Certification for entire organization. Completed a Comprehensive Collection System Master Plan. Completed design of microscreen replacement project. Rehabilitated and replaced approximately 50,000 feet of sewer main. Began Construction of the Intermediate pump replacement project at the plant.

Budget Highlights/Changes for FY 2011‐2012 1. 2. 3. 4. 5.

A 1.5% COLA salary adjustment and a $775 lump sum payment. Includes Construction of Secondary Microscreen project Reflects modest increase in medical plan costs. Reflects freezing positions at 150 and meeting new requirements through re‐engineering. Includes GASB45 requirements and increase in LGERS contribution.

Goals & Objectives  Oversee compliance with all State & Federal requirements for collection, treatment, and disposal of wastewater. (MSD Objectives 1& 2)  Manage District in a financially sound manner. (MSD Goal 3)

Operation & Maintenance

Page 47

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Office of the General Manager (continued)

Goals & Objectives (continued)

 Implement District programs in accordance with Board approved schedules, as modified from time to time as appropriate to provide project flexibility and accommodate ongoing changes in the community. (MSD Goal 4)  Manage community relations and education efforts. (MSD Objective 5)  Establish departmental goals & objectives. (MSD Goal 4)

Performance Measures

1. Oversight of compliance matters—see performance measures for Systems Services and Water Reclamation facility departments 2. Fiscal management—see performance measures for Finance Department

Operation & Maintenance

Page 48

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Office of the General Manager ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2010 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 190,591 $ ‐ $ 190,591

$ 192,574 $ ‐ $ 192,574

$ 219,102 $ ‐ $ 219,102

$ 200,780 $ ‐ $ 200,780

‐8.36% ‐ ‐8.36%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 9,497 $ 12,037 $ 17,384 $ 1,961 $ 3,600 $ 7,054 $ 51,533

$ 9,595 $ 12,136 $ 20,253 $ 2,584 $ 3,738 $ 7,044 $ 55,351

$ 14,132 $ 16,761 $ 21,308 $ 2,609 $ 5,500 $ 10,956 $ 71,266

$ 14,014 $ 15,360 $ 22,906 $ 2,609 $ 5,500 $ 10,001 $ 70,390

‐0.83% ‐8.36% 7.50% 0.00% 0.00% ‐8.72% ‐1.23%

Pos t Re ti re me nt I ns ura nce

$ 2,825

$ 2,960

$ 3,093

$ 2,820

‐8.83%

TOTAL SALARIES, WAGES & BENEFITS

$ 244,950

$ 250,885

$ 293,461

$ 273,990

‐6.63%

$ 7,907 $ 14,312 $ 12,395 $ 2,264 $ ‐ $ 28,815 $ 111,645

$ 17,000 $ 22,000 $ 12,000 $ 3,000 $ ‐ $ 50,000 $ 115,017 $ ‐ $ 2,500 $ ‐ $ 1,000 $ 1,673 $ ‐ $ ‐ $ ‐ $ ‐ $ 32,500 $ 28,827 $ ‐ $ 130,100 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,500 $ ‐ $ 125,000 $ 5,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 7,500 $ ‐ $ ‐ $ 645,243 $ ‐ $ 1,204,860

$ 17,000 $ 22,000 $ 12,000 $ 3,000 $ ‐ $ 30,000 $ 115,017 $ ‐ $ 2,500 $ ‐ $ 500 $ 1,750 $ ‐ $ ‐ $ ‐ $ ‐ $ 32,500 $ 28,000 $ ‐ $ 130,100 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,500 $ ‐ $ 125,000 $ 4,500 $ ‐ $ ‐ $ ‐ $ ‐ $ 6,000 $ ‐ $ ‐ $ 645,000 $ ‐ $ 1,180,367

$ 15,000 $ 21,000 $ 12,000 $ 3,000 $ ‐ $ 40,000 $ 115,017 $ ‐ $ 2,500 $ ‐ $ 900 $ 600 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,500 $ 28,000 $ ‐ $ 122,500 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,500 $ ‐ $ 130,000 $ 4,800 $ ‐ $ ‐ $ ‐ $ ‐ $ 6,900 $ ‐ $ ‐ $ 657,810 $ ‐ $ 1,200,027

‐11.76% ‐4.55% 0.00% 0.00% ‐ ‐20.00% 0.00% ‐ 0.00% ‐ ‐10.00% ‐64.13% ‐ ‐ ‐ ‐ 3.08% ‐2.87% ‐ ‐5.84% 0.00% ‐ ‐ ‐ ‐ ‐ 0.00% ‐ 4.00% ‐4.00% ‐ ‐ ‐ ‐ ‐8.00% ‐ ‐ 1.95% ‐ ‐0.40%

51325

$ 2,652 $ 83 $ 594 $ 594 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,649 $ 7,161 $ ‐ $ 125,504 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,409 $ ‐ $ 118,332 $ 6,121 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,296 $ ‐ $ ‐ $ 620,247 $ ‐ $ 1,098,980

$ 7,594 $ 9,104 $ 10,509 $ 3,421 $ ‐ $ 28,863 $ 113,878 $ ‐ $ 1,539 $ ‐ $ 354 $ 163 $ ‐ $ ‐ $ ‐ $ ‐ $ 35,218 $ 2,428 $ ‐ $ 111,321 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 4,830 $ ‐ $ 116,768 $ 3,491 $ ‐ $ ‐ $ ‐ $ ‐ $ 2,111 $ ‐ $ ‐ $ 629,212 $ ‐ $ 1,080,805

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 4,000 $ ‐ $ 4,000

$ ‐ $ 4,255 $ ‐ $ 4,255

$ ‐ $ 6,383 $ ‐ $ 6,383

$ ‐ $ 9,574 $ ‐ $ 9,574

‐ 49.99% ‐ 49.99%

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 1,347,929

$ 1,335,945

$ 1,504,704

$ 1,480,211

$ 1,483,591

‐1.40%

$ ‐ $ ‐

‐ ‐

$ 1,347,929

$ 1,335,945

$ 1,504,704

$ 1,480,211

$ 1,483,591

‐1.40%

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

Page 49

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Human Resources Department

Organizational Chart Director of Human Resources James Hemphill

Environmental, Health & Safety Manager VACANT

Public Relations Representative Mary Alice Hunter

Payroll/Benefits Manager Sheila Pike

HR Programs Manager Pam Thomas

EHS Administrative Assistant Sandra Moore

Operation & Maintenance

Page 50

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Human Resources (continued)

Mission Statement The mission of the Human Resource Management Division is to develop and implement a comprehensive, consistent program of human resource activities and maintain a qualified, diverse, career‐oriented work force. The mission of the Payroll and Employee Benefits Division is to process bi‐weekly payroll for the District employees and to provide an attractive employee benefits package at a reasonable cost to the District and employees.

Key Responsibilities Includes compliance with all Federal/State regulations and MSD Personnel Policies; coordinate recruitment process and new employee orientation; coordinate employee six‐month and annual evaluations; maintain employee personnel files; coordinate updates to personnel pay plan & job descriptions; maintain positive employer‐employee relations and develop training program for supervisors.

Includes bi‐weekly processing of payroll and related reports; administering the following benefits: group medical, dental and life insurance; social security, North Carolina Retirement Defined Benefit Plan, 401(k) and 457 Defined Contribution Plans, Section 125 Cafeteria Plan, and voluntary employee deductions such as cancer, disability and life insurance.

Accomplishments for FY 2010‐2011 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Identified & Coordinated training for "critical position" replacements Held 12th Annual Health Fair Wellness Room established Completed medical/physical examinations program for all insured adults Brought Mission Hospital staff on‐site for Smoking Cessation and Chronic Conditions Services Increased Employee Relations activities Coordinated United Way "Day of Caring" Developed alternate provider for "Asheville Project" services Facilitated re‐write of System Services Pay & Promotion process Continued use of Three Streams Medical Services to provide on‐site services at no cost to employees 11. Held “Wellness Day” for spouses and dependents benefit education

Budget Highlights/Changes for FY 2011‐2012 1. Increase Wellness Activities in the District: Committee, programs, exercise room, required physicals, "Housecalls" 2. Work with Employee Advisory Committee to improve benefits programs (FSA, Vision program, etc.) Operation & Maintenance

Page 51

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Human Resources (continued)

Goals & Objectives  Goal: Provide supervisory leadership development training. (MSD Objective 3)  Objective: provide appropriate training sessions for employees  Goal: Train supervisors in improving employee relations and managing employee personnel issues. (MSD Objective 3)  Goal: Maintain consistency throughout District on disciplinary actions. (MSD Objective 3)  Objective: Train supervisors to keep personnel informed/involved in all dealings leading up to a disciplinary step.  Goal: Improve the pool of applicants to reflect the diversified community. (MSD Objective 3)  Goal: Promote District employment opportunities at community job fairs. (MSD Objective 3)  Objective: Attend at least one job fair annually in Buncombe and Madison Counties  Goal: Ongoing review of new position classifications or positions with added responsibilities. (MSD Objective 3)  Objective: Review Labor Grade of new & existing positions as necessary  Goal: Keep personnel policies up to date. (MSD Objective 3)  Objective: Review 20% of policies per year  Goal: Keep job descriptions up to date. (MSD Objective 3)  Objective: Review 20% of job descriptions per year  Goal: Promote Wellness Program.( MSD Objective 3)  Objective: Have at least 75% of employees participate in Health Fair  Goal: Minimize time positions are vacant (MSD Goals 1 & 2)  Objective: Have positions filled within 20 days  Goal: Minimize cost to fill vacancies (MSD Goal 3)  Objective: Limit average cost to $400  Goal: Process payroll in a timely and accurate manner. (Objective 3)  Objective 1: No errors in paychecks.  Objective 2: All payroll tax and benefit withholdings remitted within prescribed deadlines  Goal: Promote efficient utilization of employee benefits (Objective 3)  Objective 3 : Provide quarterly education or updates to employees concerning different types of benefits or other personal financial issues  Objective 4: Resolve employee payroll and benefit concerns within two business days

Performance Measures 1. 2. 3. 4. 5.

Task Monitor and evaluate Skill Based Pay System Assist in the administration of the Employee Wellness Program # of external vacancies Avg. # of days to fill vacancies Avg. advertising cost per vacancy

Operation & Maintenance

08‐09 Yes

09‐10 Yes

10‐11 Yes

Yes 3 15 $400.00

Yes 4 15 $665.00

Yes 6 18 $665.00 Page 52

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Human Resources

(continued)

Performance Measures (continued) 6. 7. 8. 9. 10. 11.

Task Increase participation in Health Risk Assessments Participation in annual Health Fair Percentage of paychecks reissued or modified Percentage of payroll tax and benefit withholdings timely remitted Number of employee benefit education sessions Percentage of employee payroll and benefit concerns resolved within two business days.

08‐09 117 130 <.1%

09‐10 123 130 <.1%

10‐11 55 135 <.1%

100% 22

100% 20

100% 24

99%

Operation & Maintenance

Page 53

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Environmental Health & Safety

Mission Statement The mission of the Environmental Safety Division is to eliminate avoidable personal injuries and accidents through compliance with applicable federal, state, local and MSD rules and regulations governing environmental health and safety.

Key Responsibilities To ensure District compliance with laws of regulatory agencies such as OSHA, the North Carolina Department of Transportation, and EPA; to reduce losses to the District such as high worker’s compensation premiums, lost production time, damage to property, etc.; and to promote awareness of and participation in environmental, health and safety among all employees.

Accomplishments for FY 2010‐2011 1. 2. 3. 4.

5. 6. 7. 8. 9.

Zero (0) OSHA violations. Continue to manage the District experience modifier rate below 1.0. Modifying new database of all MSD written safety programs. Awarded the North Carolina Department of Labor (NCDOL) Safety Award for seventh consecutive year by maintaining a Lost Workday Case rate less than 50% of the NAICS (North American Industrial Classification System) pertaining to the District SIC code. Continued participation in the North Carolina League of Municipalities Safety Grant Program. Successful management of re‐registration of the MSD Environmental Management System. EHS Assistant is now completely involved in Safety Training. EHS Assistant successfully completed and is now an authorized OSHA Construction Industry Trainer. Coordinated with City of Asheville, NCDOT, and Asheville Transit Authority for traffic control procedures based on MUTCD.

Budget Highlights/Changes for FY 2010‐2011 1. Continuing current programs and ongoing ISO efforts.

Goals & Objectives  Goal: To guard the occupational health and safety of MSD’s workforce (MSD Goal #1)  Objective: Maintain an “Incident Rate” below industry standards of 5.30 per 100 employees.  Objective: Conduct a minimum of 6 facility inspections per month  Objective: Provide an average of 2 hours of environmental, health and safety training per employee. Operation & Maintenance

Page 54

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Environmental Health & Safety (continued)

Goals & Objectives (continued)  Objective: Subject 10% of employees with commercial driver licenses to random drug

testing  Objective: Target 0% finding of illicit substances in random and after‐accident drug tests  Goal: Maintain full compliance with all applicable legal requirements and governmental standards.  Objective: Have zero (0) OSHA violations.

Performance Measures Task 1. 2. 3. 4. 5. 6.

Number of Injuries Number of Lost Time Injuries Incident Rate NAICS Inspections/Audits Random Alcohol and Drug Tests for CDL drivers EHS Training classes conducted

CY09

CY10

11 2 7.02 12 26 51

11 2 7.02 33 24 41

CY11 (to date) 2 0 1.33 4 6 7

Operation & Maintenance

Page 55

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Human Resources Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 302,975 $ 219 $ 303,194

$ 307,901 $ ‐ $ 307,901

$ 311,405 $ 261 $ 311,666

$ 297,563 $ 261 $ 297,824

$ 353,962 $ ‐ $ 353,962

13.67% ‐100.00% 13.57%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51500 401(k) SUB‐TOTAL BENEFITS

$ 14,974 $ 22,135 $ 52,151 $ 5,876 $ 13,880 $ 112,015

$ 15,062 $ 22,461 $ 60,756 $ 7,752 $ 15,196 $ 124,342

$ 20,086 $ 23,823 $ 63,923 $ 7,830 $ 15,572 $ 134,334

$ 19,210 $ 22,784 $ 63,923 $ 7,830 $ 15,572 $ 131,119

$ 24,707 $ 27,078 $ 68,718 $ 7,830 $ 17,505 $ 148,938

23.01% 13.66% 7.50% 0.00% 12.41% 10.87%

Pos t Re ti re me nt I ns ura nce

$ 8,484

$ 8,880

$ 9,281

$ 8,460

‐8.85%

TOTAL SALARIES, WAGES & BENEFITS

$ 423,694

$ 441,124

$ 455,281

$ 438,224

$ 511,360

12.32%

$ 1,356 $ 5,229 $ ‐ $ 17,319 $ 3,577 $ ‐ $ 1,836 $ ‐ $ 806 $ 810 $ 2,091 $ 2,345 $ 43,224 $ ‐ $ ‐ $ ‐ $ 320 $ 37,272 $ ‐ $ ‐ $ 1,330 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,947 $ 3,326 $ 14,350 $ 4,255 $ ‐ $ 9,552 $ ‐ $ ‐ $ ‐ $ 150,946 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

$ 3,000 $ 5,150 $ ‐ $ 14,649 $ 6,000 $ ‐ $ 1,854 $ ‐ $ 1,700 $ 700 $ 2,098 $ 2,600 $ 40,000 $ ‐ $ ‐ $ ‐ $ 4,853 $ 39,000 $ ‐ $ ‐ $ 2,826 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ 4,000 $ 7,500 $ 5,749 $ ‐ $ 9,000 $ ‐ $ ‐ $ ‐ $ 152,678 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

$ 2,500 $ 4,750 $ ‐ $ 12,000 $ 4,000 $ ‐ $ 1,854 $ ‐ $ 1,600 $ 450 $ 1,750 $ 2,400 $ 40,000 $ ‐ $ ‐ $ ‐ $ 1,300 $ 35,000 $ ‐ $ ‐ $ 2,750 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,950 $ 3,326 $ 7,250 $ 4,500 $ ‐ $ 9,000 $ ‐ $ ‐ $ ‐ $ 136,380 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

$ 3,000 $ 5,150 $ ‐ $ 14,500 $ 4,500 $ ‐ $ 1,854 $ ‐ $ 1,100 $ 550 $ 3,400 $ 2,600 $ 40,000 $ ‐ $ ‐ $ ‐ $ 5,000 $ 53,965 $ ‐ $ 9,500 $ 3,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ ‐ $ 10,875 $ 6,500 $ ‐ $ 8,580 $ ‐ $ ‐ $ ‐ $ 176,074 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

0.00% 0.00% ‐ ‐1.02% ‐25.00% ‐ 0.00% ‐ ‐35.29% ‐21.43% 62.09% 0.00% 0.00% ‐ ‐ ‐ 3.02% 38.37% ‐ ‐ 6.18% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.00% ‐100.00% 45.00% 13.06% ‐ ‐4.67% ‐ ‐ ‐ 15.32%

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ 1,578 $ 4,950 $ ‐ $ 15,888 $ 3,802 $ ‐ $ 1,800 $ ‐ $ 1,635 $ 219 $ 2,360 $ 2,063 $ 38,514 $ ‐ $ ‐ $ ‐ $ 4,760 $ 36,915 $ ‐ $ ‐ $ 1,783 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,912 $ 3,022 $ 12,405 $ 4,387 $ ‐ $ 6,007 $ ‐ $ ‐ $ ‐ $ 144,001 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ 9,971 $ ‐ $ ‐ $ 9,971

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 577,666

$ 592,069

$ 607,960

$ 574,604

$ 687,434

13.07%

$ ‐ $ ‐ $ ‐

‐ ‐ ‐

$ 577,666

$ 592,069

$ 607,960

$ 574,604

$ 687,434

13.07%

51325

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

‐ ‐ ‐ ‐

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BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Administrative Services Department

Organizational Chart Director of Administrative Services Peter Weed

Fleet/Mechanical Maintenance Supervisor Neil Hall

Fleet Mechanic III Stephen Buckner Travis Green Paul Wilkins

IT Network Manager Matthew Walter

Database Administrator/Developer Rodney Smith

Database Analyst Dean Allen

IT Technician II Jeff Wallace IT Technician I Steven Briggs

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Fleet Maintenance

Mission Statement The mission of the Fleet Maintenance Department is to oversee the maintenance of all District rolling stock in a timely and cost efficient manner.

Key Responsibilities Provide fleet maintenance and management; coordinate Fleet Replacement; write specifications for new and replacement vehicles and equipment; manage fueling facilities; inspections at District owned facilities; maintain fleet inventory; service vehicles on a regular basis.

Accomplishments for FY 2010‐2011 1. The Biodiesel program began in July 2003. By end of June 2011, MSD purchased more than 575,000 gallons of B20 replacing more than 100,000 gallons of fossil fuel with oil made from soybeans. This renewable energy also serves to lower air pollution emissions by a corresponding twenty percent. 2. The use of E10 (10 percent ethanol) for all gasoline powered vehicles acts to fulfill MSD’s commitment to alternative “green” energy choices. FY11 purchases will exceed 15,000 gallons. 3. Maintained an 88% work order completion rate for direct labor on vehicles versus shop time (85% target).

Budget Highlights/Changes for FY 2011‐2012 1. Capital purchases adhere to phased replacement of vehicles to maximize efficiency, effectiveness and even out budgetary demands over the next five years. 2. Replacement of four diesel powered vehicles in FY12 with new "Clean Diesel" technology. This technology so advances the removal of tailpipe emissions that a recent trade journal stated the exhaust could be cleaner than the ambient air in our most smoggy cities.

Goals & Objectives  Goal: For the MSD fleet to have minimal environmental impact to the service area (MSD Goal #1)  Objective: Monitor all vehicles use of biodiesel (B20) and ethanol (E10) for any fuel related problems or repairs.  Goal: Provide high level of quality of service and proficiency  Objective: Continuous improvement and training on software upgrades, diesel engine maintenance, and repairs.

Operation & Maintenance

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BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Fleet Maintenance (continued)

Goals & Objectives (continued)  Goal: Maintain and replace only vehicles and equipment required for efficient and effective operation  Objective: With System Services, continue to evaluate heavy‐duty vehicles essential for sewer line preventative maintenance.

Performance Measures Task

1. In‐house direct labor 2. Direct labor spent on work orders 3. Same day turnaround PM vehicles

08‐09 98% 91% 94%

09‐10 97.50% 87% 95%

10‐11 98% 88% 95%

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Information Technologies (IT)

Mission Statement To provide information technology support, training, management, and development that will benefit the District divisions by 1) facilitating completion of work objectives, 2) improving communication, and 3) creating better and easier access to information.

Key Responsibilities Support new systems development based on the plans of the District divisions. Provide ongoing support and enhancements to major on‐line operational and administrative systems. Maintain the existing computer equipment and data communications network. Plan and manage the acquisition and installation of new computer equipment, software, and peripherals. Provide computer equipment support, including installations, moving and troubleshooting. Provide daily operations and product support. Develop long‐range Goals for computer systems development. Support responsibilities also include the telephone system, radio system, and process control equipment at the Plant.

Accomplishments for FY 2010‐2011 1. 2.

Migration of archived as‐builts and aerial imagery from Terastations to Dell EqualLogic SANs Implementation of third Dell EqualLogic SANs to support growth of GIS Department and imagery archiving. 3. Installed new GIS database server to support and give way for development of FLEX Web GIS application. Increased file redundancy and overall file access speeds. 4. Implementation of disaster recovery Dell EqualLogic SANs to improve data redundancy. 5. Maintained VPN/GoToMyPC access path for remote MSD office at Buncombe County Permit location. Enables user to access all MSD resources off site in secure fashion. 6. Rolled out over 30+ laptop replacements/installations, 20+ desktop replacements and/or installations for MSD users. 7. Assisted in planning and oversight of fiber optic replacement between Treatment Plant and Blower Building 8. Continued use and growth of Dell Blade Container and Dell Servers for future MSD infrastructure growth. 9. Continued District‐wide systematic hardware and software upgrades as needed. Upgraded backup hardware/software on servers to improve reliability, performance, and disaster recovery. 10. Maintained a running IT inventory to aid in fastest response time for users with hardware and software problems. We have cut down fix times from days to hours using items in our stocked inventory. 11. Upgraded smaller 17" LCD monitors to 20" or above for 75% of MSD employees. Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Information Technologies (IT) (continued)

Accomplishments for FY 2010‐2011 (continued)

12. Continued to maintain numerous methods of tracking and record keeping for IT issues; this includes, inventory, computer and printer tracking, network mapping, and especially software licensing, etc. 13. Implementation of new server room in Treatment Plant Admin building. Clean, secure, temperature controlled environment. Designed to house MSD disaster recovery efforts. 14. Implemented new Finance server for MIS/Finance department. Houses Navision database for financial software 15. Replaced Treatment Plant control room computers and UPS.

Budget Highlights/Changes for FY 2011‐2012 1. Looking to implement a new blade server (Domain Controller) server in early fall 2011 that will yield significant speed increases to user files and network authentication. 2. Assist in implementing GIS to install and maintain a load balancing blade server to assist with increasing traffic and demand of MSD mapping services. 3. Evaluate a plan for a VOIP phone system conversion for FY 2012‐2013.

Goals & Objectives In addition to maintaining the high level of service and infrastructure that we have consistently provided to MSD, including ongoing training, software development, hardware and network maintenance, and email and Internet access, the IT Department has the following specific goals for the next fiscal year:  Provide all MSD staff with outstanding customer service.  Continue to provide on‐going training, support and application customization to all divisions. Maintain the servers, network, email, websites, public map access, phones, copiers, fax machines, printers, and security systems.  Continue testing and researching in preparation for upgrades, including Windows Office 2010.  Develop and implement an Information Lifecycle Management strategy. This will include implementing disk quotas and pursuing an aggressive SAN array backup solution.  Implement Microsoft Office 2010.  Implement Blade server solution for future data growth.  Implement gigabit switches in Mull building to increase speeds of data transfers throughout.

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Management Information Services (MIS)

Mission Statement To provide information services support, training, management and development that will benefit the District divisions by 1) facilitating completion of work objectives, 2) improving communication, and 3) creating better and easier access to information and reporting.

Key Responsibilities Support new systems development based on the plans of the District divisions. Provide ongoing support and enhancements to major on‐line operational and administrative systems. Provide daily operations and product support. Develop new software applications to meet specific MSD needs. Offer computer software training programs for District staff. Develop long‐range goals for computer systems development.

Accomplishments for FY 2010‐2011 1. Rebuild of the ROW Negotiations Tracking Database 2. Together with SAM team ‐ Documented business process, work flow, and needs assessment of all work order systems (WOMS, OSIRIS, Fleet, etc.) 3. Ran demos for 2 Work order software solutions in an effort to find replacement, enterprise packages to replace your current Access database 4. Assisted in running demos for CCTV camera software 5. In coordination with SAM ‐ Scoping out new software solutions to better integrate our business data with GIS making our data more "asset‐centric". 6. Successfully moved Navision to our new FINANCE Server 7. Continued maintenance and upgrades to our current data systems 8. Worked closely with GIS to develop a roadmap for moving forward with software development and implementation schedules. 9. Conducted intro and advanced Excel classes 10. Assisted in QC project to clean up HP and CC inspections 11. Re‐vamped ACT database (paving contracts) to accommodate new Ashville contract 12. Created Parcel Diary module for ROW 13. Designed many retirement/event banners for various departments 14. Continued desktop support for any and all current software 15. Successfully brought the Hydro database online so that information can be filled out and uploaded remotely from the Hydro Plant using the Internet.

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Management Information Services (MIS) (continued)

Budget Highlights/Changes for FY 2011‐2012 1. Complete re‐vamping of the Industrial Waste Self‐Reporting website. 2. Actively evaluating software packages from multiple vendors over the next 10 ‐ 15 months, in an effort to better, and more effectively utilize our data resources. 3. Continue the transition of Access databases to the SQL platform and use web interfaces for analyzing Plant data. 4. Integrate more business processes into the GIS‐centric approach (i.e. Flex System). 5. Continue training classes of Office 2010 modules.

       

Call systems. Complete documentation and flowcharting of current data management systems and processes. Create single, integrated water billing database system. Identify areas where data needs to be cleaned, organized, refined, or restructured in order to move forward with our greater integration and deployment initiatives. Upon identification ‐ prioritize and create processes for getting those tasks complete. Come to a decision on a data development/purchase plan for FY 11‐12. Modify water billing databases & reports to work properly. Move existing Access databases for plant into SQL back‐end. Continue development of web apps for plant using SCADA data and existing databases. Move existing plant spreadsheets to databases. Continue to create new functionality, and analytical reporting abilities to our SCADA and On Call systems. Complete documentation and flowcharting of current data management systems and processes. Create single, integrated water billing database system.

Operation & Maintenance

Page 63

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Administrative Services Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 596,851 $ 1,109 $ 597,960

$ 596,318 $ 1,592 $ 597,910

$ 609,067 $ 1,500 $ 610,567

$ 625,972 $ 2,500 $ 628,472

2.78% 66.67% 2.93%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 29,241 $ 43,185 $ 86,919 $ 9,799 $ ‐ $ 22,951 $ 192,095

$ 29,291 $ 43,382 $ 101,260 $ 12,920 $ ‐ $ 23,329 $ 210,182

$ 39,381 $ 46,708 $ 106,539 $ 13,050 $ ‐ $ 30,455 $ 236,133

$ 43,867 $ 48,077 $ 114,530 $ 13,050 $ ‐ $ 30,912 $ 250,436

11.39% 2.93% 7.50% 0.00% ‐ 1.50% 6.06%

Pos t Re ti re me nt I ns ura nce

$ 14,135

$ 14,800

$ 15,467

$ 14,100

‐8.84%

TOTAL SALARIES, WAGES & BENEFITS

$ 804,190

$ 822,892

$ 862,167

$ 893,008

3.58%

$ 8,702 $ 754 $ ‐ $ 5,955 $ ‐ $ ‐ $ 128,256 $ 20,907 $ 13,320 $ 1,522 $ 1,209 $ 258,409 $ ‐ $ 3,518 $ 4,471 $ ‐ $ ‐ $ 25,503 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 177,468 $ 8,548 $ 22,317 $ 25,297 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 58,357 $ 5,716 $ ‐ $ ‐ $ 770,229

$ 11,947 $ 535 $ ‐ $ 3,363 $ ‐ $ ‐ $ 130,822 $ 24,725 $ 14,426 $ 1,560 $ 837 $ 238,658 $ ‐ $ 753 $ 4,667 $ ‐ $ ‐ $ 3,713 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 161,829 $ 7,521 $ 19,989 $ 25,994 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 41,676 $ 6,240 $ ‐ $ ‐ $ 699,255

$ 9,245 $ 630 $ ‐ $ 5,650 $ ‐ $ ‐ $ 132,130 $ 25,500 $ 18,100 $ 1,844 $ 1,400 $ 248,715 $ ‐ $ 3,500 $ 6,372 $ ‐ $ ‐ $ 9,219 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 200,000 $ 7,500 $ 25,000 $ 26,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 35,105 $ 13,500 $ ‐ $ ‐ $ 769,410

$ 9,245 $ 705 $ ‐ $ 5,000 $ ‐ $ ‐ $ 132,130 $ 23,000 $ 15,750 $ 1,769 $ 1,100 $ 242,537 $ ‐ $ 3,000 $ 3,850 $ ‐ $ ‐ $ 9,200 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 200,000 $ 7,500 $ 20,500 $ 25,500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 33,000 $ 12,000 $ ‐ $ ‐ $ 745,786

$ 9,250 $ 525 $ ‐ $ 4,000 $ ‐ $ ‐ $ 132,130 $ 25,500 $ 15,900 $ 1,500 $ 1,000 $ 250,600 $ ‐ $ 3,500 $ 5,000 $ ‐ $ ‐ $ 11,500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 275,000 $ 7,500 $ 27,000 $ 25,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 40,000 $ 13,500 $ ‐ $ ‐ $ 848,405

0.05% ‐16.67% ‐ ‐29.20% ‐ ‐ 0.00% 0.00% ‐12.15% ‐18.66% ‐28.57% 0.76% ‐ 0.00% ‐21.53% ‐ ‐ 24.74% ‐ ‐ ‐ ‐ ‐ ‐ 37.50% 0.00% 8.00% ‐3.85% ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13.94% 0.00% ‐ ‐ 10.27%

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ 3,192 $ ‐ $ 3,192

$ ‐ $ 4,255 $ ‐ $ 4,255

$ ‐ $ 6,383 $ ‐ $ 6,383

‐ 50.01% ‐ 50.01%

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ 138,292 $ 9,405 $ ‐ $ 147,696

$ 56,493 $ 4,231 $ ‐ $ 60,724

$ 33,645 $ 40,000 $ ‐ $ 73,645

$ 33,000 $ 38,900 $ ‐ $ 71,900

$ ‐ $ 20,750 $ 35,000 $ 55,750

‐100.00% ‐48.13% ‐ ‐24.30%

SUB‐TOTAL O&M FUND

$ 1,722,115

$ 1,586,064

$ 1,709,477

$ 1,684,108

$ 1,803,546

5.50%

$ ‐ $ ‐

‐ ‐

$ 1,722,115

$ 1,586,064

$ 1,709,477

$ 1,684,108

$ 1,803,546

5.50%

51325

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

Page 64

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Financial Services Department

Organizational Chart Director of Financial Services W. Scott Powell

Budget Analyst I Teresa Gilbert

Accounting Manager Cheryl Rice

Accounting Technician II Amy Alexander

Accounting Technician I Jody Germaine

Purchasing Supervisor Julie Willingham

Purchasing Agent II Charles Pertiller

Purchasing Agent I Denver Bradley

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Finance, Accounting & Budget

Mission Statement The mission of the Finance, Accounting, and Budget Division is to provide timely, useful, and accurate financial data to all internal and external customers including but not limited to staff, division directors, Board, investors, and the public and to assure prudent control of District cash and investments.

Key Responsibilities Coordinates and manages the District’s Operating and Capital budget preparation; monitors the annual budget through pre‐audit of purchase orders and invoice payment; prepares monthly operation and capital projects financial reports for management and the Board; assists in financial analysis as directed by the General Manager or Board; monitors all debt financing obligations for timely payment and reporting; coordinates issuance of debt with professional advisors; oversees the Insurance Programs; prepares billing for industries and customers using well water.

Accomplishments for FY 2010‐2011 1. Received the GFOA “Excellence in Financial Reporting” award for the Comprehensive Annual Financial Report (CAFR) for FY ending June 30, 2010. 2. Received the GFOA “Distinguished Budget” award for the Budget Document prepared for FY ending June 30, 2010. 3. Continuation of the paper reduction initiative by scanning all vendor invoices and general ledger entries.

Budget Highlights/Changes for FY 2011‐2012 1. Maintaining current staffing and expenditure levels with modest increase in training expenditures.

Goals & Objectives  Goal: Prepare and administer budget, which effectively meets the short and long‐term needs of the District. (Operating Budget Policy #6)  Objective: Obtain outside verification of the effectiveness of the budget document as a policy, operations, and communications guide by earning GFOA Distinguished Award for Budget Document.  Objective: Maximize accuracy of budgeted revenues and expenditures by striving for variances between budget and actual amounts of less than 5%.  Objective: Maintain affordability of rate increases by limiting rate increase to southern urban cost of living percentage. Operation & Maintenance

Page 66

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Finance, Accounting & Budget (continued)

Goals & Objectives (continued)  Goal: Prepare CAFR and other financial information, which effectively meet manager, investor, regulator, and other user needs.  Objective: Obtain outside verification of the effectiveness of the CAFR by earning Government Finance Officers’ Association Award of Excellence.  Objective: Maximize availability of financial information to all users by offering CAFR and budget documents on District Website.  Goal: Manage the District’s debt rating to obtain the lowest cost of borrowing. (Debt Policy #3)  Objective: Achieve compliance with all provisions of Bond Order. (Debt Policy #6)  Objective: Maintain or improve District’s debt rating.  Objective: Make efficient use of district funds used for debt service.  Goal: Manage District’s investments to maximize rate of return while maintaining safety and meeting cash flow needs.  Objective: Achieve a total rate of return at least that of a 6‐Month T‐bill.  Goal: Prepare sewage treatment bills, which are accurate and collected in a timely manner.  Objective: Limit rebilling due to errors to less than 1% of total bills.  Objective: Collect a minimum of 98% of all residential fees and 90% of industrial fees billed.  Goal: Pay for all services rendered and goods delivered to the District in a timely and accurate manner.  Objective: Not be assessed any late charges on any District accounts.  Objective: Limit voided accounts payable checks to 10% of total checks written.  Goal: Operate Finance Department in an efficient manner.  Objective: Minimize finance department expenditures in relation to total expenditures.

Performance Measures 1. 2. 3. 4. 5.

Task 08‐09 09‐10 10‐11(est) Receive the Distinguished Budget Presentation yes yes yes Award Ratio of actual to budgeted sewer revenues 97.49% 99.97% 99.50% Ratio of operating and maintenance total 94.00% 93.85% 98.00% expenditures actual to budgeted Comments: These illustrate the accuracy of financial projections, and adequacy of revenues to meet expenditures. Southern Urban COL % increase ‐2.10% 1.00% 3.50% MSD rate increase 3.00% 3.75% 3.50% Comments: Assesses affordability of sewer rate increases when compared to overall regional price increases. Receipt of GFOA Excellence in Financial Reporting yes yes yes Award for CAFR

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Finance, Accounting & Budget (continued)

Performance Measures (continued) Task 08‐09 09‐10 10‐11(est) 7. CAFR and budget document available on website yes yes yes 8. Compliance with all provisions of bond order yes yes yes 9. District debt rating Moody’s/Standard & Aa3/AA/AA Aa2/AA/AA+ Aa2/AA/AA+ Poor’s/Fitch 10. Interest and debt management costs as a 4.10% 3.50% 3.25% percentage of outstanding debt 11. MSD Investment Yield 2.69% 1.28% 1.09% 12. NC Cash Management Trust (Money Market) 1.70% 0.17% 0.14% 13. 6‐Month T‐Bill Secondary Market (Calendar) .82% 0.20% 0.18% Comments: Rates of return reflect overall declining interest rates in the fixed income market. 14. Collection of internally billed residential accounts 96.37% 96.50% 97.00% 15. Collection of internally billed industrial accounts 97.75% 97.50% 98.00% 16. Percentage of voided accounts payable checks 5.25% 5.00% 5.00% Comments: This ratio illustrates the effectiveness of the cash disbursement process. 17. Percentage of total O&M costs expended on 4.66% 4.91% 4.80% Finance function

Operation & Maintenance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Purchasing & Warehouse

Mission Statement The mission of the Purchasing and Warehouse Division is to provide procurement services to District Departments in the timeliest and cost‐effective manner in compliance with all requirements of the District’s Purchasing Policy and NC General Statutes while maintaining a complete and sufficient supply of parts and materials required for District operations and asset maintenance.

Key Responsibilities To provide a proper system of internal control for all District acquisitions; to ensure compliance with the North Carolina General Statutes and the Board‐approved District Purchasing Policy; to assist and train division requisitioners as required; to effect timely acquisitions and disposals of property.

Accomplishments for FY 2010‐2011 1. Continue to offer high level of Customer Service to all customers internal and external to MSD. 2. The Purchasing Supervisor participated on ISO Team including role as internal auditor. 3. Purchasing Supervisor successfully completed instruction for ARCADIS ISO 14001:2004 Internal Auditor Training Course. 4. Successfully auctioned MSD surplus material receiving almost $49,000 in receipts. 5. Enhanced paper reduction initiative by scanning and attaching receipts, quotations, emails and other pertinent information and documentation to purchase orders and the vendor database. Also increased use of email and pdf for Request for Qualifications (RFQ) and other communications with vendors.

Budget Highlights/Changes for FY 2011‐2012 1. Maintaining current staffing and expenditure levels.

Goals & Objectives  Goal: Provide services and supplies in a timely manner (LT6 and Purchasing Policy #2)  Objective 1: Place purchase orders within three business days of requisition.  Objective 2: Bid capital equipment within two weeks of requisition  Goal: Maintain cost‐effective and sufficient inventory levels  Objective 3: To maintain an inventory loss level below 3%. (Purchasing Policy #2)  Objective 4: To minimize emergency purchases. Operation & Maintenance

Page 69

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Purchasing & Warehouse (continued)

Goals & Objectives (continued)

 Goal: Assure compliance with legal mandates and District policies for procurement activities  Objective 5: To purchase at least 12% of all goods and services from minority owned/operated businesses

Performance Measures 1. 2.

3. 4.

Task Purchase orders placed within 3 business days. Requisitions for capital equipment to be bid within two (2) weeks from receipt of detailed specifications from division. Maintain loss of inventory at Warehouse below 3% in value. (Goal 2) Obtain the 12% goal for purchases with minority owned/operated businesses.

08‐09 97%

09‐10 98%

10‐11(est) 98%

98%

0.25%

2.00%

1.75%

13.25%

13%

12.50%

Operation & Maintenance

Page 70

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Financial Services Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

$ 382,827 $ 67 $ 382,894

$ 391,038 $ ‐ $ 391,038

$ 398,647 $ 500 $ 399,147

$ 398,647 $ ‐ $ 398,647

$ 413,374 $ 500 $ 413,874

3.69% 0.00% 3.69%

$ 18,677 $ 28,035 $ 69,535 $ 7,841

$ 25,745 $ 30,535 $ 85,231 $ 10,439 $ ‐ $ 19,933 $ 171,883

$ 25,713 $ 30,496 $ 85,231 $ 10,439 $ ‐ $ 19,750 $ 171,629

$ 28,888 $ 31,661 $ 91,623 $ 10,439

$ 15,218 $ 139,306

$ 19,335 $ 29,205 $ 81,008 $ 10,336 $ ‐ $ 17,233 $ 157,117

$ 20,359 $ 182,970

12.21% 3.69% 7.50% 0.00% ‐ 2.14% 6.45%

51325 Pos t Re ti re me nt I ns ura nce

$ 11,305

$ 11,840

$ 12,373

$ 11,280

‐8.83%

TOTAL SALARIES, WAGES & BENEFITS

$ 533,504

$ 559,995

$ 583,403

$ 582,649

$ 608,124

4.24%

$ ‐ $ 630

$ ‐ $ 2,000 $ ‐ $ 15,411 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,500 $ 1,050 $ 3,700 $ 1,369 $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ 58,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,106 $ ‐ $ ‐ $ ‐ $ 86,136

$ ‐ $ 1,800 $ ‐ $ 14,250 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,440 $ 950 $ 3,650 $ 1,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 55,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,106 $ ‐ $ ‐ $ ‐ $ 79,446

$ ‐ $ 2,000 $ ‐ $ 13,425 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,300 $ 1,050 $ 3,700 $ 1,200 $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ 52,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,400 $ ‐ $ ‐ $ ‐ $ 78,075

‐ 0.00% ‐ ‐12.89% ‐ ‐ ‐ ‐ ‐13.33% 0.00% 0.00% ‐12.34% ‐ ‐ ‐ ‐ 0.00% ‐10.34% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26.64% ‐ ‐ ‐ ‐9.36%

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 1,943 $ 709 $ 3,193 $ 774 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,840 $ 51,904 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 442 $ ‐ $ ‐ $ ‐ $ 70,437

$ ‐ $ 1,449 $ ‐ $ 11,206 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,128 $ 196 $ 3,043 $ 582 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 48,555 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 576 $ ‐ $ ‐ $ ‐ $ 66,734

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 603,942

$ 626,730

$ 669,539

$ 662,095

$ 686,199

2.49%

$ ‐ $ ‐

‐ ‐

$ 603,942

$ 626,730

$ 669,539

$ 662,095

$ 686,199

2.49%

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

$ 9,003

Page 71

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Water Reclamation Facility Department

Organizational Chart Director of Water Reclamation Facility John Kiviniemi

Water Reclamation Facility Superintendent Dennis Lance

Field Operations Manager Monty Payne

WRF Shift Operators Lonnie Hargrove WRF Operators Peter Colburn Tom Good Michael Houston Joseph Lassiter Melanie Sprinkle Mike Switzer David Wells Gary Wilson VACANT

Industrial Pretreatment Coordinator Jon H. van Hoff Industrial Waste Chemist Wayne Tipton Industrial Waste Technician VACANT

SCADA/PLC Technician Dale Maxwell

Utility Maintenance Manager Tony Franklin

Building Trades Manager Scott Monroe

Electrical/Maintenance Foreman Larry Briggs

Builder Trades Builder Pat Carver Pritchard Hensley Keith Lewis Calvin Nolan David Vicary

Maintenance Technicians Michael Ball David Burgin Terry Burnette Tim Coates Mark Ferris Thomas Franklin Willard Frisbee Charles Gammon Mickey Lewis Dewayne Martin Dillard Rice Toby Roberts Robert Triplett VACANT

Operation & Maintenance

Page 72

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Water Reclamation Facility (continued)

Mission Statement The mission of the Water Reclamation Facility (WRF) Division is to maintain the highest level of wastewater quality by meeting Federal and State environment regulations; operate and maintain facilities in a productive and cost effective manner; and above all to protect the environment.

Key Responsibilities Include the operation of the District’s regional water reclamation facility and (31) remote pump stations; maintain 24 hour shift operation and emergency response; assure that all treated wastewater meets all discharge requirements; maintain all mechanical, electrical electronic, pneumatic equipment and instrumentation; maintain a preventive & proactive maintenance program; assure that residuals management program complies with Federal and State regulations; operate and maintain the Craggy Dam Hydro Electric Power Generation facility.

Accomplishments for FY 2010‐2011 1. Received the National Association of Clean Water Agencies (NACWA) “Peak Performance Award” for ninth consecutive year acknowledging Treatment Plant compliance 2. Final Microscreen Replacement Project – initiated construction phase 3. Intermediate Pump Replacement Project ‐ completed 4. WRF SCADA – continued improvements to plant, remote pump station & flow monitoring SCADA 5. Completed Weaverville Pump Station preliminary engineering study – future system replacements 6. Completed source emission testing & air dispersion modeling @ incinerator 7. Continued comprehensive WRF process monitoring/evaluation – RBC & solids separation process 8. NPDES permit renewed – cyanide limit removed based upon MSD study 9. Completed in‐house repair to venturi at incinerator process 10. Continued hydrogen sulfide (H2S) gas detection/monitoring system at Carrier Bridge Pump Station – liquid and vapor phase odor control program 11. Completed Weaverville Pump Station renovations – base elbows and pumps 12. Continued conversion of plant SCADA systems 13. Continued structural systems improvements at WRF and pump stations 14. Completed pump motor upgrades at Carrier Bridge Pump Station (100 HP motors) 15. Continued/Expanded Grease Public Education – local schools, civic groups, advertising 16. Continued development of in‐house replacement work order database for WRF

Operation & Maintenance

Page 73

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Water Reclamation Facility (continued)

Budget Highlights/Changes for FY 2010‐2011 1. Final micro‐screen replacement project–equipment procurement + initiate construction phase 2. Intermediate pump replacement project – complete construction phase 3. Major pump rehab ‐ influent pumps and Carrier Bridge PS (evaluation & selection) 4. RBC system improvements ‐ slide gate & bearing replacements + basin cleanout 5. Comprehensive WRF Process Monitoring & Evaluation – RBC System & Solids Separation Process 6. Complete Weaverville Pump system Study + initiate preliminary engineering 7. Continuation of WRF SCADA conversion project 8. Remote Facilities (Pump Stations & Flow Monitoring) SCADA Improvements 9. Incinerator building renovation – electrical & control room improvements 10. Initiation of pump station facility renovation program + creation of dedicated crew 11. Continuation of roof replacement & structural rehab projects at pump stations & WRF 12. Conduct source testing, dispersion modeling & emissions inventory ‐ at incinerator 13. Rehab of four intermediate clarifier drives + tankage 14. Finalize SUO modifications, headworks analysis & industrial waste survey

Goals & Objectives  Goal: Operate the Water Reclamation Facility in the most efficient and effective manner and in compliance with all requirements of the Discharge Permit (NPDES) (MSD Objective #2)  Objective: Achieve a carbonaceous biochemical oxygen demand (CBOD) removal efficiency of at least 85%  Objective: Achieve a total suspended solids (TSS) removal efficiency of 85%  Objective: Have NPDES permit non‐compliance occurrence of 0  Objective: Limit odor complaints by maintaining dissolved hydrogen sulfide (H2S) levels below 0.5 mg/L.  Goal: Timely and cost‐efficient maintenance and rehabilitation of plant buildings and equipment (MSD Goals # 1 and 3)  Objective: Complete up to two aging roofing systems annually  Objective: Complete up to two building resurface (stucco) projects annually  Objective: Maintain a preventative to corrective maintenance ratio of at least 70:30  Objective: Maintain an equipment availability ratio of at least >95%  Objective: Maintain treatment costs (cost/MG) at/below NACWA average  Objective: Implement improvement plan covering WRF facility – specifically items identified in WRF Facilities Plan. Operation & Maintenance

Page 74

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Water Reclamation Facility (continued)

Goals & Objectives (continued)  Goal: Continual improvement of operations (MSD Goal #4)  Objective: Effectively manage divisional objective(s) identified in the ISO 14001 Environmental Management System.  Objective: Evaluate applicability of the North Carolina Occupational Safety & Health Administration (OSHA) Carolina Star designation by FY10.  Objective: Re‐evaluate skill based pay program annually.  Objective: Continued development of WRF SCADA ‐ integration of controls, schematics, process/instrumentation drawings (P&ID), standard operating procedures (SOP), operations and maintenance (O&M), etc. by FY10.

Performance Measures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Task Daily (average) flow, treated MGD Maximum daily flow treated, MGD Dry tons of bio‐solids processed Cost per million gallons (MG), treated Energy costs per MG, treated Carbonaceous biochemical oxygen demand (CBOD) removal efficiency, % Total suspended solids (TSS) removal efficiency, % Number of NPDES permit non‐compliance Preventative to corrective maintenance ratio Equipment availability percentage

Operation & Maintenance

08‐09 16.5 40.2 4934 $961 $205

09‐10 21.3 57.8 4985 $721 $114

10‐11 18.5 56.8 4767 $826 $163

92 92 0 70:30:00 >95%

91 90 0 70:30:00 >95%

Page 75

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12 Budget – Water Reclamation Facility Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 1,756,959 $ 91,711 $ 1,848,671

$ 1,933,696 $ 102,450 $ 2,036,146

$ 2,020,262 $ 102,450 $ 2,122,712

4.48% 0.00% 4.25%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 90,477 $ 135,161 $ 338,982 $ 38,220 $ ‐ $ 79,194 $ 682,033

$ 131,331 $ 155,764 $ 415,500 $ 50,892 $ ‐ $ 96,687 $ 850,174

$ 148,165 $ 162,386 $ 446,663 $ 50,892 $ ‐ $ 99,620 $ 907,726

12.82% 4.25% 7.50% 0.00% ‐ 3.03% 6.77%

$ 60,320

$ 54,990

‐8.84%

$ 2,946,640

$ 3,085,428

4.71%

$ 8,500 $ 14,971 $ ‐ $ 18,500 $ ‐ $ ‐ $ 131,216 $ ‐ $ 37,500 $ 25,080 $ 5,000 $ 110,000 $ ‐ $ 41,500 $ 465,000 $ ‐ $ 580 $ 273,529 $ ‐ $ 12,000 $ 415,000 $ ‐ $ 40,000 $ 8,000 $ 3,000 $ ‐ $ ‐ $ 10,000 $ 1,100,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 840 $ ‐ $ ‐ $ ‐ $ 2,720,216

$ 8,000 $ 14,676 $ ‐ $ 15,000 $ ‐ $ ‐ $ 131,216 $ ‐ $ 34,000 $ 22,680 $ 4,700 $ 102,550 $ ‐ $ 38,400 $ 435,000 $ ‐ $ 550 $ 260,000 $ ‐ $ 12,000 $ 403,000 $ ‐ $ 38,000 $ 4,000 $ ‐ $ ‐ $ ‐ $ 10,000 $ 1,100,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,633,772

$ 8,500 $ 15,000 $ ‐ $ 15,000 $ ‐ $ ‐ $ 131,216 $ ‐ $ 37,000 $ 24,200 $ 5,000 $ 102,000 $ ‐ $ 32,500 $ 465,000 $ ‐ $ 1,000 $ 287,000 $ ‐ $ 12,000 $ 400,000 $ ‐ $ 40,000 $ 5,000 $ ‐ $ ‐ $ ‐ $ 12,000 $ 1,200,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,792,416

0.00% 0.19% ‐ ‐18.92% ‐ ‐ 0.00% ‐ ‐1.33% ‐3.51% 0.00% ‐7.27% ‐ ‐21.69% 0.00% ‐ 72.41% 4.92% ‐ 0.00% ‐3.61% ‐ 0.00% ‐37.50% ‐100.00% ‐ ‐ 20.00% 9.09% ‐ ‐ ‐ ‐ ‐ ‐ ‐100.00% ‐ ‐ ‐ 2.65%

Pos t Re ti re me nt I ns ura nce

$ 55,120

TOTAL SALARIES, WAGES & BENEFITS

$ 2,585,824

$ 7,689 $ 2,279 $ ‐ $ 16,566 $ ‐ $ ‐ $ 127,370 $ ‐ $ 24,275 $ 18,532 $ 3,078 $ 96,543 $ ‐ $ 23,742 $ 328,175 $ ‐ $ ‐ $ 302,527 $ ‐ $ 3,677 $ 370,511 $ ‐ $ 26,149 $ 4,429 $ ‐ $ ‐ $ ‐ $ 8,242 $ 1,086,437 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,450,220

$ 1,843,971 $ 106,117 $ 1,950,088 $ ‐ $ ‐ $ 95,319 $ 143,163 $ 394,914 $ 50,388 $ ‐ $ 70,700 $ 754,484 $ ‐ $ 57,720 $ ‐ $ 2,762,292 $ ‐ $ ‐ $ 4,772 $ 3,453 $ ‐ $ 14,083 $ ‐ $ ‐ $ 129,917 $ ‐ $ 24,351 $ 20,577 $ 3,357 $ 99,511 $ ‐ $ 32,711 $ 407,788 $ ‐ $ ‐ $ 191,519 $ ‐ $ 6,379 $ 362,927 $ ‐ $ 43,120 $ 1,032 $ ‐ $ ‐ $ ‐ $ 11,178 $ 899,979 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,026 $ ‐ $ ‐ $ ‐ $ 2,258,680

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 44,000 $ 200,000 $ 244,000

$ ‐ $ 24,467 $ 200,000 $ 224,467

$ ‐ $ 46,809 $ 50,000 $ 96,809

$ ‐ $ 70,211 $ 50,000 $ 120,211

‐ 49.99% 0.00% 24.17%

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ 2,492 $ ‐ $ ‐ $ 2,492

$ ‐ $ ‐ $ 15,000 $ 15,000

‐ ‐ 0.00% 0.00%

SUB‐TOTAL O&M FUND

$ 5,280,044

$ 5,247,931

$ 5,778,665

$ 5,692,221

$ 6,013,055

4.06%

$ ‐ $ ‐

‐ ‐

$ 5,280,044

$ 5,247,931

$ 5,778,665

$ 5,692,221

$ 6,013,055

4.06%

51325

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

Page 76

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

System Services Department

Organizational Chart Director of System Services Barry Cook Assistant Division Director for SSD Ken Stines

SSD Administrator Lisa Tolley

Dispatcher II Linda Phillips Office Assistant II Brenda Parker Kathy Meeks

Pipeline Replacement Construction & Repair Supervisor Ben Reeves

Tap Installation Construction & Repair Supervisor Wallace Foster

Construction Crew Leader Randy Norton

Construction Crew Gilbert Karn Tommie Brooks Robert Denny Jason Price Jason Brigmon

Construction Crew Leader Jesse Hunter

Construction Crew Clement Crowe McKinley Hensley Lloyd Anders Tim Haney

Technical Services Supervisor Eric Bryant

Construction Crew Leader Keith Gass

Construction Crew Leader Roy Lytle

Construction Crew Carl Ellington John Crowe Marcus Bynum Donnie Benson

Construction Crew Shane Meadows Eric Gillis Eric Dawson Rob Bryson Dale Dillingham

Emergency TV T.S. Oper. II Furman Dean First Responders James Beaver Rick Bates Herman Shelton Grady Brooks

Little Flusher T.S. Oper. II Wayne Rice Worker II Marvin Felder

Construction Worker III Randy Mull Worker II Mike Rice

T.S. Worker II Chris Johnson

Portable Flusher T.S. Oper. I Robert Burnett

TV Van T.S. Oper II Rick Bradley T.S. Oper I Shawn Buckner

Preventative Maintenance Supervisor Jason Capizzi

Tanker T.S. Operator I Anthony England TV Van T.S. Oper. II Ed Wathen T.S. Operator III Eric Sams

T.S. Operator III Greg Patton

Locates ULOCO/T.S. Operator I Alan Knighten

Big Flusher T.S. Operator III Shaun Meadows T.S. Worker II David Hightower

Rod Truck T.S. Worker II Pete Cole T.S. Worker II Lee Plemmons

Call Truck T.S. Operator II Jason Norton

Big Flusher T.S. Oper. II Mitch Hawes T.S. Operator I Ray Lunsford

Operation & Maintenance

Page 77

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

System Services

Mission Statement The Mission Statement of the System Services Division is to be “Stewards of the Environment”, “Consistently Provide the Highest Level of Customer Service” and “Treat Others with Respect and Professionalism”, both Internally and Externally.

Key Responsibilities Provide quality cost effective customer service while protecting the waters of the State and the environment of Buncombe County and the District.

Accomplishments for FY 2010‐2011 1. Mechanically removed or chemically treated for roots over 70,000 linear feet (LF) of pipeline. 2. Rehabilitated over 20,000 LF of pipeline with in‐house crews. 3. Cleaned over 570,000 LF of pipeline with in‐house crews. 4. Achieved one‐hour response time goal during working hours and after hours. 5. Continuing a joint venture with the City of Asheville Water Department for cost savings on paving and permit fees. 6. Established a second crew dedicated to rehabilitation of sewer lines. 7. Tapping Team won 2nd place overall at the Tapping Competition at the annual NC AWWA Conference. 8. Established new job steps for promotional purposes to be in place by July 1, 2011. 9. Completed locating and mapping SSES unconfirmed manholes. 10. Purchased HDPE pipe for bypass pumping to clean lines. 11. Purchased two (2) four‐sided shoring boxes to set manholes for employee safety. 12. Purchased new color push camera to replace worn out unit.

Budget Highlights/Changes for FY 2011‐2012 1. Purchase a pipe laser for new CIP crew. 2. Purchase track hoe for new CIP crew. 3. Purchase new CCTV Inspection unit to replace old one.

Goals & Objectives  Goal: Operate collection system in compliance with all provisions of State Permit (MSD Objective #1)  Objective: Rehabilitate 20,000 LF of sewer line with Dig‐and‐Replace and IRS Rehabilitation.  Objective: Clean 500,000 LF of sewer pipeline with in‐house crews. Operation & Maintenance

Page 78

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

System Services (continued)

Goals & Objectives (continued)  Goal: Eliminate repeat Sanitary Sewer Overflows. (MSD Goals #1 and 3)  Objective: Reduce number of Sanitary Sewer Overflows.  Goal: Continue to provide excellent customer service. (MSD Goal #5)  Objective: Respond to service requests during normal working hours within one hour.  Objective: Respond to service requests after working hours within one hour.  Goal: Work with City of Asheville Engineering, Street, and Water Departments for strategic planning with joint projects. (MSD Goal #6)  Objective: Continue quarterly meetings with departments.  Objective: Remove service lines from water meter boxes.  Objective: Coordinate tap installation to reduce permit fees.  Objective: Establish joint ventures for paving overlays.  Objective: Coordination of service line renewals.  Objective: Establish an agreement on milling.  Goal: Represent MSD in the Pipe Tapping Competition at the NC AWWA Conference. (MSD Goal #10)  Objective: Achieve the best place possible while maintaining a spirit of competition and team cooperation.  Goal: Explore various cost savings options for the division.  Objective: Explore pipe‐bursting options.  Objective: Explore option of First Responders driving portable flushers.  Objective: Explore option of creating a Right of Way Crew.  Goal: Establish a Cross Training schedule.  Objective: Cross Train as many employees as possible to increase their knowledge base.

Performance Measures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Task Customer Service Response calls during normal working hours Average Response Time Customer Service Request calls (after hours & holidays) Average Response Time (after hours & holidays) Lines Washed (lineal feet) Root Control chemical & rod (lineal feet) TV Report (lineal feet) Construction Repairs Taps Installed Manhole Repairs Sanitary Sewer Overflow Totals Dig & Replace Rehabilitation (lineal feet)

Operation & Maintenance

08‐09 1,399

09‐10 1,331

10‐11(est) 1,300

0.49 hr 1,104

0.52 hr 1,068

0.60 hr 1,150

0.61 hr. 893,079 164,464 264,431 528 211 458 23 6,539

0.64 hr 997,238 206,821 375,305 447 225 461 35 8,462

0.75 hr 570,000 70,000 302,000 450 160 345 25 13,000 Page 79

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

System Services (continued)

08‐09 8,363 968 15,870

09‐10 12,921 3,616 24,999

10‐11(est) 5,000 2,500 20,500

Performance Measures (continued) Task 13. IRS (lineal feet) 14. Construction Rehabilitation (lineal feet) 15. Total Construction Rehabilitation Footage (lineal feet) (Items 12, 13, and 14)

Operation & Maintenance

Page 80

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12 Budget – System Services Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 2,289,997 $ 108,843 $ 2,398,840

$ 2,266,801 $ 118,499 $ 2,385,300

$ 2,312,204 $ 150,000 $ 2,462,204

$ 2,388,641 $ 150,000 $ 2,538,641

3.31% 0.00% 3.10%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 117,153 $ 173,920 $ 495,435 $ 55,860 $ ‐ $ 79,213 $ 921,581

$ 116,383 $ 173,735 $ 577,182 $ 73,644 $ ‐ $ 91,124 $ 1,032,068

$ 158,812 $ 188,359 $ 607,270 $ 74,380 $ ‐ $ 115,611 $ 1,144,432

$ 177,197 $ 194,206 $ 652,815 $ 74,380 $ ‐ $ 117,302 $ 1,215,900

11.58% 3.10% 7.50% 0.00% ‐ 1.46% 6.24%

Pos t Re ti re me nt I ns ura nce

$ 80,560

$ 84,360

$ 88,160

$ 80,370

‐8.84%

TOTAL SALARIES, WAGES & BENEFITS

$ 3,400,980

$ 3,501,728

$ 3,694,796

$ 3,834,911

3.79%

$ ‐ $ 3,680 $ ‐ $ 19,770 $ ‐ $ ‐ $ 160,352 $ ‐ $ 27,927 $ 34,999 $ 7,212 $ ‐ $ ‐ $ 72,898

$ ‐ $ 3,570 $ ‐ $ 25,274 $ ‐ $ ‐ $ 163,559 $ ‐ $ 27,010 $ 31,303 $ 6,084 $ ‐ $ ‐ $ 74,825 $ ‐ $ 68,303 $ ‐ $ 143,922 $ ‐ $ ‐ $ 32,750 $ 8,994 $ ‐ $ 6,474 $ ‐ $ ‐ $ ‐ $ 51,516 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 14,256 $ ‐ $ ‐ $ ‐ $ 657,839

$ 1,000 $ 4,400 $ ‐ $ 33,510 $ ‐ $ ‐ $ 165,195 $ ‐ $ 38,600 $ 40,000 $ 6,800 $ ‐ $ ‐ $ 76,000 $ ‐ $ 63,900 $ ‐ $ 114,600 $ ‐ $ ‐ $ 54,000 $ 13,000 $ ‐ $ 14,000 $ ‐ $ ‐ $ ‐ $ 85,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 9,650 $ ‐ $ ‐ $ ‐ $ 719,655

$ 500 $ 5,400 $ ‐ $ 27,000 $ ‐ $ ‐ $ 165,195 $ ‐ $ 36,750 $ 38,925 $ 6,600 $ ‐ $ ‐ $ 69,500 $ ‐ $ 56,250 $ ‐ $ 114,600 $ ‐ $ ‐ $ 40,000 $ 11,500 $ ‐ $ 12,000 $ ‐ $ ‐ $ ‐ $ 65,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 8,800 $ ‐ $ ‐ $ ‐ $ 658,020

$ 1,000 $ 5,500 $ ‐ $ 33,750 $ ‐ $ ‐ $ 165,195 $ ‐ $ 44,000 $ 40,000 $ 6,800 $ ‐ $ ‐ $ 76,000 $ ‐ $ 63,900 $ ‐ $ 20,500 $ ‐ $ ‐ $ 54,000 $ 13,000 $ ‐ $ 24,000 $ ‐ $ ‐ $ ‐ $ 85,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 7,850 $ ‐ $ ‐ $ ‐ $ 640,495

0.00% 25.00% ‐ 0.72% ‐ ‐ 0.00% ‐ 13.99% 0.00% 0.00% ‐ ‐ 0.00% ‐ 0.00% ‐ ‐82.11% ‐ ‐ 0.00% 0.00% ‐ 71.43% ‐ ‐ ‐ 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐18.65% ‐ ‐ ‐ ‐11.00%

$ ‐ $ 63,830 $ ‐ $ 63,830

$ ‐ $ 134,043 $ ‐ $ 134,043

$ ‐ $ 201,067 $ ‐ $ 201,067

‐ 50.00% ‐ 50.00%

$ 36,500 $ ‐ $ 22,400 $ 58,900

$ 32,500 $ ‐ $ 20,000 $ 52,500

$ 16,350 $ ‐ $ 7,800 $ 24,150

‐55.21% ‐ ‐65.18% ‐59.00%

51325

$ 49,836 $ 145,864

$ 33,816 $ 10,397 $ 13,175

$ 65,710

$ 8,850

$ 654,486

$ 140,000 $ 140,000

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ 30,115 $ 107,575

$ 59,378 $ ‐ $ 23,602 $ 82,979

SUB‐TOTAL O&M FUND

$ 4,303,041

$ 4,306,377

$ 4,607,394

$ 4,539,359

$ 4,700,623

2.02%

$ ‐ $ (1,147,214)

$ ‐ $ (1,203,737)

$ ‐ $ (1,202,377)

$ ‐ $ (1,313,621)

‐ 9.25%

$ 3,155,827

$ 3,102,640

$ 3,405,017

$ 3,336,982

$ 3,387,002

‐0.53%

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

$ 77,460

Page 81

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Planning & Development Department

Organizational Chart Director of Planning & Development Stan Boyd, P.E.

Private Development Coordinator (Plan Review) Kevin Johnson

Engineering Support Technician VACANT

Private Development Project Manager David Monteith

Private Development Coordinator (Taps & Allocations) Mike Butler

Private Development Inspector Dan Cook

System Coordinator III Kay Farlow Cecelia Cardascio

Operation & Maintenance

Page 82

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Planning & Development

Mission Statement The mission of the Engineering Services Division is to provide necessary long‐ and short‐range wastewater facilities planning and quality control associated with expanded growth areas and new developments; and all to the most efficient and effective standards necessary to ensure wastewater transport and treatment at an equitable price and in an environmentally sensitive manner.

Key Responsibilities Includes master planning of transport and treatment facilities, special studies, and analyses, evaluation of projected flow allocations, plan review, and quality control of developer‐constructed projects.

Accomplishments for FY 2010‐2011 1. Maintained One Stop at Buncombe County Building Permits Office by staffing a satellite office there. 2. Enhanced paper reduction initiative by scanning received submittals, using e‐mail and pdf for communications with others. 3. Updated project management system database by scanning and linking pertinent archived documents. 4. Implemented revised Policy and Procedures for the Extension of Sewer Service.

Budget Highlights/Changes for FY 2011‐2012 1. Continue cross training of positions to improve customer service and departmental efficiency. 2. Refinement of business plan/project management system database.

Goals & Objectives  Goal: Verify efficiently and effectively adequate capacity of lines prior to authorizing construction of new lines or connection of any new facility (MSD Goal #1)  Objective: Review allocation requests and comment within (5) five working days of receipt.  Goal: Verify efficiently and effectively that all developer‐constructed projects conform to MSD requirements (MSD Goal #1)  Objective: Review plan submittals and provide comments within (10) ten working days of receipt.  Goal: Safeguard structural integrity and accessibility of MSD sewer lines against damage from grading activities by other jurisdictions and private parties (MSD Objective #4)  Objective: Review grading permits and comment within (3) three working days of receipt.

Operation & Maintenance

Page 83

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Planning & Development (continued)

Goals & Objectives (continued)  Goal: Administer the Cost Recovery Program whereby the District in return for additional potential revenue from ratepayers, reimburses the developer for the construction cost of the sewer (MSD Objective #4)  Objective: Fairly and accurately, administer Reimbursements Program to promote orderly development of the sewer system.  Goal: Obtain feedback from developers and engineers concerning feasibility and structure of MSD regulations governing sewer lines to be accepted for public use. (MSD Objective #5)  Objective: Maintain communication with developers and engineers through annual meetings.  Goal: Reduce use of paper and minimize file space needs.  Objective: Utilize document scanning, document files in pdf format linked to database for digital access.

Performance Measures 1. 2. 3. 4. 5. 6. 7.

Task Allocations Allocations processed per FTE Sewer Tap Applications Sewer Tap Applications processed per FTE Plans reviewed Value of accepted systems Value per Linear Foot of accepted Sewer Systems

08‐09 131 131 983 983 101 $5,920,825 $76.33

09‐10 100 100 1,094 1,094 47 $947,201 $91.07

10‐11 (est) 72 72 925 925 37 $784,005* $418,005 $34.78* $87.61

*The District accepted (2) aged systems, Covewood and Ashley Woods.

Operation & Maintenance

Page 84

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Planning & Development Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 451,330 $ 411,822 $ 2,136 $ ‐ $ 453,466 $ 411,822

$ 469,321 $ 3,500 $ 472,821

$ 447,000 $ ‐ $ 447,000

$ 483,395 $ 3,500 $ 486,895

3.00% 0.00% 2.98%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 22,175 $ 20,143 $ 32,955 $ 30,030 $ 69,535 $ 81,008 $ 7,841 $ 10,336 $ ‐ $ ‐ $ 20,351 $ 18,630 $ 152,857 $ 160,147

$ 30,497 $ 36,171 $ 85,231 $ 10,439 $ 1,200 $ 23,467 $ 187,005

$ 28,832 $ 34,196 $ 85,231 $ 10,439 $ 1,200 $ 23,467 $ 183,365

$ 33,985 $ 37,247 $ 91,623 $ 10,439 $ 1,200 $ 23,899 $ 198,393

11.44% 2.97% 7.50% 0.00% 0.00% 1.84% 6.09%

Pos t Re ti re me nt I ns ura nce

$ 11,305

$ 11,840

$ 12,373

$ 11,280

‐8.83%

TOTAL SALARIES, WAGES & BENEFITS

$ 617,628

$ 583,809

$ 672,199

$ 642,738

$ 696,568

3.63%

$ ‐ $ ‐ $ 937 $ 935 $ ‐ $ ‐ $ 7,252 $ 5,649 $ ‐ $ ‐ $ ‐ $ ‐ $ 16,645 $ 16,978 $ ‐ $ ‐ $ 1,742 $ 2,593 $ 862 $ 995 $ 1,898 $ 1,538 $ 337 $ 361 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 62 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 29,735 $ 29,049

$ ‐ $ 1,300 $ ‐ $ 7,150 $ ‐ $ ‐ $ 17,148 $ 1,800 $ 2,000 $ 1,800 $ 2,100 $ 500 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,000 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 35,798

$ ‐ $ 1,050 $ ‐ $ 7,000 $ ‐ $ ‐ $ 17,148 $ 1,740 $ 1,800 $ 1,400 $ 1,800 $ 500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 300 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 32,738

$ ‐ $ 1,300 $ ‐ $ 7,000 $ ‐ $ ‐ $ 17,148 $ 1,800 $ 2,000 $ 1,800 $ 2,100 $ 500 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,000 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 35,648

‐ 0.00% ‐ ‐2.10% ‐ ‐ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐ ‐ ‐ ‐ 0.00% 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐0.42%

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 4,000 $ ‐ $ 4,000

$ ‐ $ 1,064 $ ‐ $ 1,064

$ ‐ $ 2,127 $ ‐ $ 2,127

$ ‐ $ 3,191 $ ‐ $ 3,191

‐ 50.02% ‐ 50.02%

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 651,363

$ 613,922

$ 710,124

$ 677,603

$ 735,407

3.56%

$ (456,557) $ (418,500) $ ‐ $ ‐

$ (500,318) $ ‐

$ (518,327) $ ‐

3.60% ‐

$ 194,806

$ 209,806

$ 177,285

$ 217,080

3.47%

51325

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

$ 195,422

Page 85

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Capital Improvement Department

Organizational Chart

Director of Capital Improvement Ed Bradford, P.E.

Engineering Office Manager Sharon Walk

Design & Drafting Manager Dave Nisbeth

Engineering Tech III Brian Pearce Darin Prosser

GIS Manager Kathryn Brewer

Lead GIS Technician Eric Mann

GIS Technician I Daniel Marsh Technical Services Data Manager Larry Williams

Operation & Maintenance

Right of Way Manager Angel Banks

Right of Way Admin. Assistant Pam Nolan

Right of Way Agent Wesley Banner

Construction Manager Mike Schraven

Construction Admin. Assistant Denise Moore

Construction Inspector III Mike Presley

Engineer III Roger Watson, P.E.

Engineer I Mike Stamey, P.E.

Engineering Associate Shaun Armistead

Construction Inspector II Kevin Devlin VACANT

Page 86

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Capital Improvement

Mission Statement The mission of the Capital Improvement Division is to produce, manage, and complete engineering projects for the repair and rehabilitation of the District’s collection system and Water Reclamation Facility (WRF). This shall be undertaken in the most efficient and effective manner necessary to ensure the reliable delivery and treatment of wastewater at an equitable price and in an environmentally sensitive manner.

Key Responsibilities Prepare a complete budget and schedule for all Capital Improvement Projects each fiscal year, and adhere to it. For all capital projects: 1)Produce quality, timely, and cost‐effective engineering designs, plans, and specifications; 2)Acquire necessary rights‐of‐way; and 3)Administer construction through each project’s completion. Prepare CIP cash flows quarterly to be submitted to the Finance Director for accurate cash flow management. Procure, manage, and direct design work performed by various consulting engineers, as needed. Provide various special studies; perform specialized related duties; and serve as a technical resource for the District. Manage the District’s Geographic Information System (GIS).

Accomplishments for FY 2010‐2011 1. 45,450 Linear Feet (LF) of collection system were rehabilitated during FY10. This included 20,090 LF rehabilitated through contract construction, 24,999 LF rehabilitated in‐house by System Services, and 361 rehabilitated as a part of development work. 2. Acquired Rights‐of‐Way over 60 properties. (*) 3. Designed 15 unscheduled in‐house projects for System Services. These are both designed and constructed by in–house forces. (*) 4. Managed (with WRF staff and consultant) two significant WRF projects for replacement of the Intermediate Pumps and the Final Microscreens. The Intermediate pump project is complete and in closeout. Construction is underway on the Final Microscreen project. (*) 5. Managed over 106 projects/line items within the CIP. Projects are within the various stages of lifecycles ‐ from preliminary design, to active construction, to complete/closeout. 6. Fully implemented MSD Flex Viewer Application for internal and external GIS users. Received the Herb Stout Award from the NC GIS Conference for this application. 7. Mapped 27 as‐builts from CIP, P & D, and In‐House Projects. In response to System Services Field work, verified 52 SSES manholes, mapped 174 field edits, mapped 112 taps, and processed 592 videos. Answered 250 inquiries about sewer locations.

Budget Highlights/Changes for FY 2011‐2012 1. Begin Electrical Improvement project at plant, which will provide more stable power and increased redundancy during power outages. ($2.8 Million, Two Fiscal Years) 2. Complete Final Microscreen project at plant. ($10.2 Million, Three fiscal Years) Operation & Maintenance

Page 87

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Capital Improvement (continued)

Budget Highlights/Changes for FY 2011‐2012 (continued) 3. Complete Lake Julian Wet Weather Interceptor Ph. III (Approx. 8,400 LF, $2.7 Million, Two Fiscal Years).

Goals & Objectives  Rehabilitate 45,000‐47,000 feet of the collection system, in close collaboration with System

   

 

Services. Note that footage is intentionally reduced for FY11 in order to offset significant plant expenditures, and will normalize for FY12 and beyond. (MSD Objective #1) Advertise and bid Final Microscreen project. Complete Intermediate Pump Replacement Project. Meet the time and budget predictions established in the CIP for FY12. (MSD Goal #3) Utilize consulting engineers for unexpected rehabilitation projects, or those requiring specialized expertise, as necessary to produce a timely response for other Divisions’ engineering requests. (MSD Goal #2) Coordinate work/projects with member agencies whenever possible. This is accomplished by sharing information on upcoming work. Prepare special studies and designs as necessary for other Divisions. (MSD Goal #2)

Performance Measures Task 1. Linear footage rehabilitated 2. CIP expenditures 3. CIP projections vs. actual expenditures

08‐09 45,179 $12.9M 72%

09‐10 45,450 $9.7M 52%

10‐11* 45,551 $16.2M 79%

(*) Estimated as of 5/27/11. Expenditures/percentages do not include Contingency or Reimbursements.

Operation & Maintenance

Page 88

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY12 Budget – Capital Improvement Program Department ACTUAL 2008‐2009

ACTUAL 2009‐2010

APPROVED 2010‐2011 BUDGET

ESTIMATED ACTUAL 6/30/2011

PROPOSED 2011‐2012 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sa l a ri e s & Wa ge s 51150 Ove rti me TOTAL SALARIES & WAGES

$ 1,091,849 $ 1,225 $ 1,093,074

$ 1,136,661 $ 9,000 $ 1,145,661

$ 1,149,769 $ 9,000 $ 1,158,769

1.15% 0.00% 1.14%

BENEFITS 51200 NC Re ti re me nt 51250 Pa yrol l Ta xe s 51300 Group Me di ca l , De nta l & Li fe 51350 Worke r's Compe ns a ti on 51450 Automobi l e Al l owa nce 51500 401(k) SUB‐TOTAL BENEFITS

$ 53,453 $ 81,569 $ 173,837 $ 19,602 $ ‐ $ 46,110 $ 374,571

$ 72,800 $ 87,643 $ 213,077 $ 26,099 $ ‐ $ 55,984 $ 455,603

$ 80,882 $ 88,645 $ 229,058 $ 26,099 $ ‐ $ 56,715 $ 481,399

11.10% 1.14% 7.50% 0.00% ‐ 1.31% 5.66%

$ 30,933

$ 28,200

‐8.84%

$ 1,632,197

$ 1,668,368

2.22%

$ ‐ $ 5,400 $ ‐ $ 27,216 $ ‐ $ ‐ $ 36,879 $ ‐ $ 7,500 $ 4,550 $ 9,800 $ 5,673 $ ‐ $ ‐ $ ‐ $ ‐ $ 4,000 $ 73,560 $ ‐ $ ‐ $ 2,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 208,478

$ ‐ $ 4,475 $ ‐ $ 22,285 $ ‐ $ ‐ $ 36,879 $ ‐ $ 5,200 $ 3,535 $ 7,900 $ 4,825 $ ‐ $ ‐ $ ‐ $ ‐ $ 2,325 $ 67,575 $ ‐ $ ‐ $ 2,425 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 28,200 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 185,624

$ ‐ $ 5,675 $ ‐ $ 30,789 $ ‐ $ ‐ $ 36,879 $ ‐ $ 7,500 $ 4,550 $ 6,800 $ 7,200 $ ‐ $ ‐ $ ‐ $ ‐ $ 4,000 $ 83,000 $ ‐ $ ‐ $ 2,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 330 $ ‐ $ ‐ $ ‐ $ 220,623

‐ 5.09% ‐ 13.13% ‐ ‐ 0.00% ‐ 0.00% 0.00% ‐30.61% 26.92% ‐ ‐ ‐ ‐ 0.00% 12.83% ‐ ‐ 0.00% ‐ ‐ ‐ ‐ ‐ ‐ 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5.83%

$ 470,000 $ 6,383 $ ‐ $ 476,383

$ 412,923 $ 9,574 $ ‐ $ 422,497

‐12.14% 49.99% ‐ ‐11.31%

Pos t Re ti re me nt I ns ura nce

$ 28,266

TOTAL SALARIES, WAGES & BENEFITS

$ 1,495,911

MATERIALS, SUPPLIES & SERVICES 52010 Adve rti s i ng 52050 Due s & Subs cri pti ons 52100 Pos ta ge 52150 Tra ve l , Me e ti ngs & Tra i ni ngs 52160 Tui ti on As s i s ta nce 52170 Di re ctor's Fe e s & Expe ns e s 52180 I ns ura nce 52200 Te l e phone & Te l e fa x 52210 Communi ca ti ons (othe r tha n te l e phone 52240 Uni forms 52250 Offi ce Suppl i e s 52260 Spe ci a l De pa rtme nta l Suppl i e s 52270 Sa fe ty Equi pme nt/Suppl i e s 52280 Suppl i e s /Sma l l Tool s 52290 Che mi ca l s 52300 Li ne Cl e a ni ng & Suppl i e s 52330 Le ga l Fe e s 52350 Profe s s i ona l /Contra ctua l Se rvi ce s 52400 Re pa i rs ‐ Offi ce Equi pme nt 52410 Ma i nte na nce ‐ Bl dgs . & Ground 52420 Ma i nte na nce Equi pme nt 52430 La nds ca pe Re s tora ti on 52440 Pump Ma i nte na nce 52450 Equi pme nt Re nta l 52460 Motor Fue l & Lubri ca nts 52470 Outs i de Ve hi cl e Ma i nte na nce 52500 Re nts & Le a s e s 52510 Pe rmi ts & Fe e s 52650 Uti l i ti e s 52690 Fre i ght 52715 Sa fe ty I nce nti ve Progra m 52720 He a l th Fa i r 52725 We l l ne s s Progra m 52730 Empl oye e As s i s ta nce Progra m 52900 Othe r Ope ra ti ng Expe ns e s 52910 Non‐Ca pi ta l Equi pme nt 52915 Copi e rs , Pri nte rs & Fa xe s 52920 Bi l l i ng & Col l e cti ons 52990 Conti nge ncy TOTAL MATERIALS, SUPPLIES & SERVICES

$ ‐ $ 2,635 $ ‐ $ 23,382 $ ‐ $ ‐ $ 35,798 $ ‐ $ 4,941 $ 2,159 $ 5,538 $ 4,384 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,424 $ 51,395 $ ‐ $ ‐ $ 1,510 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 164,165

INTERFUND TRANSFERS 52340 De bt Admi ni s tra ti on Expe ns e s 53040 Fl e e t Equi pme nt Re pl a ce me nt Fund 53050 WWTP Re pl a ce me nt Fund TOTAL INTERFUND TRANSFERS

$ 220,062 $ 8,000 $ ‐ $ 228,062

$ 1,098,838 $ 782 $ 1,099,620 $ ‐ $ ‐ $ 53,438 $ 82,205 $ 202,520 $ 25,840 $ ‐ $ 42,453 $ 406,455 $ ‐ $ 29,600 $ ‐ $ 1,535,675 $ ‐ $ ‐ $ ‐ $ 3,774 $ ‐ $ 17,443 $ ‐ $ ‐ $ 36,514 $ ‐ $ 4,100 $ 1,789 $ 6,086 $ 5,997 $ ‐ $ ‐ $ ‐ $ ‐ $ 366 $ 77,094 $ 7 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 285 $ ‐ $ ‐ $ ‐ $ 184,455 $ ‐ $ ‐ $ 479,154 $ 3,192 $ ‐ $ 482,346

54010 Ca pi ta l Equi pme nt ‐ NEW 54020 Ca pi ta l Equi pme nt ‐ Softwa re 54030 Ca pi ta l Equi pme nt ‐ Re pl a ce me nt TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ 12,149 $ 1,255 $ ‐ $ 13,404

$ 19,754 $ 2,000 $ 10,000 $ 31,754

$ ‐ $ ‐ $ ‐ $ ‐

‐100.00% ‐100.00% ‐100.00% ‐100.00%

SUB‐TOTAL O&M FUND

$ 1,888,137

$ 2,215,880

$ 2,348,812

$ 2,325,958

$ 2,311,488

‐1.59%

$ (1,812,846) $ ‐

$ (2,138,975) $ ‐ $ ‐ $ 76,906

$ (2,263,833) $ ‐

$ (2,247,179) $ ‐

$ (2,229,097) $ ‐

‐1.53% ‐

$ 84,979

$ 78,779

$ 82,391

‐3.05%

51325

59200 LESS: Cha rge ba cks to Ge ne ra l Fund for CI P Cha rge ba cks to Ge ne ra l Fund for SSD NET OPERATION & MAINTENANCE FUND

Operation & Maintenance

$ 75,291

Page 89

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

This page intentionally left blank.

Operation & Maintenance

Page 90

Insurance Funds

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Insurance Funds

Overview The insurance funds are funded through annual appropriations from the Operations and Maintenance Fund Budget. The District has established four (4) insurance funds as part of its sewer rate stabilization strategy. Background information and current year budget highlights of the insurance funds are discussed below and on the following pages.

 Self‐funded Employee Medical Program

The District offers medical, dental, and life insurance to all employees. Employees may purchase optional dependent coverage through payroll deduction. These benefits are funded by a combination of District contributions as well as commercial insurance premiums. The District has established a self‐insured group health and dental insurance program, with premiums paid to commercial carriers for stop‐loss and aggregate coverage to limit the amount of risk the District will assume. A third party administrator processes all claims, and a commercial healthcare provider network is retained to negotiate fees and authorize payments. Prescription benefits are administered through a private contractor. Employees pay a nominal amount for individual medical and dental coverage and pay approximately 30% to 36% of the cost for dependent coverage. After employee payment of specified deductibles and co‐payments for medical and dental services, the Plan covers the remaining authorized charges in total. The budget for FY12 includes employer contributions increase of 7.5% to cover anticipated expenditure needs.

 Post‐Employment Insurance

The District has established a post‐employment insurance fund to accumulate funds now, which will reduce future operational expenditures when retirees begin taking advantage of this benefit. The District will annually fund the equivalent of the annual required contribution less expenses as determined by an actuarial study as required by GASB 45. The accumulated funds will only be used for post‐employment insurance. However, the District’s Board does reserve the right to use the reserve funds for unforeseen emergencies. FY11 funding of $211,500 represents 1.5% of total operations. As of May 2011, the District has three (3) eligible participants in it post‐employment insurance plan.

Insurance Funds

Page 91

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Insurance Funds (continued)

 Worker's Compensation

The District established a separate insurance fund for worker’s compensation, which will facilitate allocation of costs to respective department, division, and section budgets. The Safety Officer acts as liaison with the insurance carrier to administer claims and to minimize future claims by providing training and equipment designed to prevent injuries. The budget for FY12 does not include an increase in employer contributions to cover anticipated expenditure needs.

 General Liability

The District’s general liability insurance fund was established to: 1) allocate insurance costs to all departments, divisions and sectional budgets, 2) provide funds for payment of no‐fault sewer back‐ups and 3) establish reserves to offset future unanticipated increases in sewer back‐up liabilities in excess of budgeted amounts. The budget for FY12 does not include an increase in employer contributions to cover anticipated expenditure needs.

FY12 Self-funded Employee Medical Program Budget Beginning Balance Income: District Contributions Employee Contributions Transfer from Other Insurance Funds Interest Total Income

Actual 2009‐2010 $

Total Funds Available Expenses: Expected Claim Liability Fixed Costs (see note below) Total Expenses Ending Balance Note: Fixed Costs Aggregate & Stop Loss Premiums/TPA Life Insurance COBRA Administration Fee Total Fixed Expenses Insurance Funds

522,312 1,518,901 293,416 79,134 5,490 1,896,941

Estimated Actual 2010‐2011 $

639,990 $ 1,598,079 368,361 132,789 10,500 2,109,729

Budget 2011‐2012 639,990 1,717,936 460,079 ‐ 3,500 2,181,515

2,419,253

2,749,719

2,821,505

1,378,101 401,162 1,779,263

1,630,533 479,196 2,109,729

1,674,373 507,161 2,181,534

639,990 373,242 27,920 ‐ 401,162

639,990 $ 450,589 28,607 ‐ 479,196

639,971 478,268 28,893 ‐ 507,161 Page 92

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Insurance Funds (continued)

FY12 Post Employment Insurance Budget Beginning Balance Income District Contributions Employee Contributions Interest Income Total Income

Actual 2009‐2010 $

222,000 1,146 3,856 227,002

Total Funds Available Expenses

228,123

Total Expenses Ending Balance

1,121

Estimated Actual 2010‐2011

213,700 213,700

14,423

Budget 2011‐2012

14,423 $ 232,000 5,844 6,250 244,094

26,517 211,500 ‐ 6,000 217,500

258,517

244,017

232,000 232,000

211,500 211,500

26,517 $

32,517

FY12 Worker’s Compensation Financial Plan Actual 2009‐2010 Beginning Balance Income District Contributions Interest Income Total Income

234,963

193,800 2,461 196,261

Total Funds Available Expenses Interfund Transfer Deductibles for Individual Claims Premiums to commercial carrier Total Expenses Ending Balance

Insurance Funds

Estimated Actual 2010‐2011 $

Budget 2011‐2012

286,480 $

263,763

195,738 1,800 197,538

195,738 1,000 196,738

431,224

484,018

460,501

‐ 13,892 130,852 144,744

74,730 14,375 131,150 220,255

‐ 15,000 155,000 170,000

286,480

263,763 $

290,501

Page 93

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Insurance Funds (continued)

FY12 General Liability Financial Plan Actual 2009‐2010 Beginning Balance Income District Contributions Interest Income Total Income

Estimated Actual 2010‐2011

$ 257,109

Total Funds Available

593,504 1,394 594,898

$ 306,727

852,007

599,439 1,200 600,639

Budget 2011‐2012 $ 326,389

907,366

Expenses Interfund Transfer Premiums to commercial carrier No Fault Sewer Back‐Up Claims Claim Deductibles Flood Insurance Total Expenses

79,134 380,061 17,392 62,752 5,941 545,280

58,059 411,541 25,000 80,000 6,377 580,977

Ending Balance

306,727

599,439 1,000 600,439 926,828

‐ 435,250 50,000 85,000 6,900 577,150

326,389 $

349,678

Insurance Funds

Page 94

Replacement Funds

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Replacement Funds

Overview The replacement funds are funded through annual appropriations from the Operations and Maintenance Fund Budget. The District has established two replacement funds as part of its sewer rate stabilization strategy, with third reserve fund required under the Bond Order. Background information and current year budget highlights of the replacement funds are discussed below and on the following pages.

 Fleet Equipment Replacement The District has projected replacement dates and estimated prices for all vehicles and construction‐type equipment over $10,000. This information has been used to develop a funding plan whereby relatively constant amounts are to be transferred in from the annual Operations and Maintenance budget, with annual expenditures to be made in varying amounts to secure new vehicles and equipment as indicated in the plan’s timetable. The projected balance in the fund at the end of FY11 is anticipated to approximate $577,097. The FY12 contribution is $300,000, with anticipated expenditures of $573,000, including (3) 1 Ton Utility Bed Truck, ½ Ton Truck, Dump Body, Trailer, Van – CCTV, Loader, and Excavator.

 Wastewater Treatment Plant Replacement The replacement fund for the wastewater treatment plant and pump stations was set up to develop a reserve to address general equipment replacement cost at these facilities. A similar strategy of periodic, uniform contributions from the Operations and Maintenance Fund and withdrawals for planned equipment rehabilitation or replacement is employed. The FY12 contribution is $50,000 with anticipated expenditures for $200,000 including RBC Bearing Replacements, Replacement Emergency Generator @ Clayton Rd PS, WRF & PS SCADA System Improvements, RBC Basin Cleanout, and Barscreen Rehab.

 Capital Reserve Fund This fund is mandated by the Bond Order to contain six percent (6%) or such greater percentage, as may be determined from time to time by the Board, of the amount shown by the Annual Budget to be necessary for current expenses for the current Fiscal Year. As this fund is to be tapped only for unusual and unforeseen expenditures, none are budgeted. There will be no contributions to this fund this year as the balance is in excess of that required.

Replacement Funds

Page 95

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Replacement Funds (continued)

FY12 Description Fleet Beginning Balance: Equipment Revenue: Replacement District Contributions Sale of Surplus Property Fund Budget Interest Income

Actual 09‐10 $

100,000 72,548 12,678 185,226

Total Revenue Expenditures: Various (3) 1 Ton Utility Bed Truck ½ Ton Truck Dump Body Trailer Van ‐ CCTV Loader Excavator Total Expenditure Replacements Ending Balance:

961,157

450,174

‐ 450,174 696,209

Projected 10‐11 $

696,209

200,000 60,000 20,886 280,886 400,000 ‐ 400,000 $

577,095

Budget 11‐12 $

577,095

300,000 100,000 7,214 407,214

117,000 26,000 13,000 20,000 173,000 75,000 149,000 573,000 411,309

Replacement Funds

Page 96

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Replacement Funds (continued)

Description FY12 Wastewater Beginning Balance: Treatment Revenue: District Contributions Plant Interest Income Replacement Total Revenue Fund Budget

Actual 09‐10 $

Ending Balance:

876,890

Expenditures: Various RBC Bearing Replacements Replacement Emergency Gen. WRF/PS SCADA System Impr. RBC Basin Cleanout Barscreen Rehab Total Expenditure Replacements

Projected 10‐11 $

200,000 12,254 212,254

210,072

‐

879,072

729,072 50,000 11,035 61,035

20,000

30,000

25,000

‐

100,000 25,000

210,000 $

200,000

729,072

FY12 Capital Reserve Fund Budget

50,000 10,000 60,000 210,000

210,072 $

Budget 11‐12

590,107

Description Beginning Balance: Revenue: Interest Income Total Revenue Ending Balance:

Actual

Projected

Budget

09‐10

10‐11

11‐12

807,261

7,284 7,284 $

814,545

814,545 9,205 9,205

823,750

11,250 11,250 835,000

Note: Ending balance must be at least 6% of annual O & M current expenses. FY 2011‐2012 O & M Budget ($14,360,298‐$350,000 transfer to reserves‐$94,900 capital equipment) X 6% = $834,924).

Replacement Funds

Page 97

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

This page intentionally left blank.

Replacement Funds

Page 98

CIP Program

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Capital Improvement Program

Overview The District’s Capital Improvement Program commands the largest portion of budgeted expenditures, and as such, is planned strategically and in great detail for all infrastructure projects in excess of the $15,000 infrastructure capitalization threshold. The District updates its ten‐year capital improvement program (CIP) annually to comply with state regulatory and bond order requirements. Objectives of constructing these capital projects include replacing and rehabbing structurally defective sewer lines, handling wet‐weather flow conditions, improving the performance at the wastewater treatment plant, and preparing the system to handle expected future wastewater flows over the upcoming decade. The process begins with engineering staff developing projects, which often originate from problem areas identified by field crews during emergency and preventative maintenance procedures, and includes consideration of those projects outlined in the 20‐year Wastewater System Master Plan. MSD is mandated through its Collection System Permit to rehabilitate a minimum of 250,000 linear feet of collection system lines over a five‐year period. Engineers evaluate and prioritize each proposed project based upon the District’s short‐term requirements and long‐term mission. Engineering staff then prepare cost estimates for identified projects and a proposed timetable for construction. Once the CIP is drafted, the CIP committee, consisting of representatives from the member agencies, meets to review the costs, locations, and necessity of proposed projects and when satisfied, recommends that the Board adopt the plan. A copy of the CIP summary sheets follows in the succeeding pages of this budget document. A separate document compiling individual pages for each project with detailed costs and location map as presented to the CIP Committee may be obtained upon request to W. Scott Powell, Director of Finance at (828)225‐8211 or spowell@msdbc.org. The ten‐year CIP prioritizes projects identified by the Board as fulfilling the District’s mission but does not obligate District resources for their construction past the end of the current budget year. The District has a capital projects ordinance, which is periodically updated as necessary, to make available funds for all projects scheduled for construction in the upcoming budget year and certain other projects to be begun in the current year but completed in a subsequent year.

Current Year Highlights Approximately 69 infrastructure projects are included in the CIP for FY 12, ranging in length from 200 feet to over 10,456 feet. In‐house forces as well as outside contractors will be used to rehabilitate the regulated amounts as prescribed by the District’s Collection System Permit. The CIP has adapted to the recent loss of industrial revenue by rebalancing the proportion of relining and dig‐and‐replace projects to maintain the required footage within tighter cost constraints. Collection System. Significant collection system projects scheduled for the upcoming year include:  PRP Pipe Lining Contract #6, a 10,456 foot $902,500 endeavor; a 1,968 linear foot Capital Improvement Program

Page 99

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Capital Improvement Program (continued)

Phase 2 interceptor project at Town Branch at a cost of $664,000; and a 1,810 linear foot general sewer rehabilitation of Patton Avenue at Parkwood Road at a cost of $303,200. Water Reclamation Facility. During FY 07, the Water Reclamation Facilities Plan was completed which is a highly detailed assessment of the condition, performance, and future needs of the various unit processes and equipment within the WRF. CIP staff has incorporated major recommendations into four critical long‐ range replacement and rehabilitation project.  Intermediate Pumps—These aging pumps are hydraulically driven which is highly inefficient, and there is concern of contamination the effluent with hydraulic fluid should the system leak. Funds of approximately $2.5 million for installing new variable‐speed electric pumps. The project was completed in FY11.  Secondary Microscreens—Rusty and no longer performing satisfactorily, this equipment has become an operational and maintenance headache. Being the critical barrier between the WRF and the river, the secondary microscreens have been scheduled for replacement. Design is complete with construction beginning in FY11 with completion expected in FY12. Total cost of the project is estimated to be $10.4 million.  Rotating Biological Contactors (RBC)—These large rotating wheels house biomass growth, which dip into the wastewater and allow waste to be biologically consumed as it flows through the basins. These RBCs can weigh up to 45,000 pounds and after turning constantly for 20 years propelled by compressed air, some are suffering mechanical failure and broken shafts. Access is problematic and replacement units use an electric motor, rather than the current compressed air configuration. Currently, this process is operating adequately, and funds for further study into replacement of or alternatives to this process have been included in future years of the CIP.

Background The Capital Improvement Program is essential to the efficient functioning of the District, as evidenced by the requirement from both the bond order and state collection system permit. A well‐planned CIP provides customers with the assurance of having reliable and affordable wastewater collection and treatment both now and in the future. Throughout the history of the District, staff has continued to seek increasingly effective ways of identifying and prioritizing individual projects, to ensure a more comprehensive and balanced CIP. In 1990, as part of the political process of forming the District, certain construction and rehabilitation projects were identified by the various member municipalities and sanitary districts. Once these designated projects were completed, the District then focused on rehabilitating aging, undersized collection lines to minimize unregulated discharges of raw sewage (sanitary Capital Improvement Program

Page 100

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Capital Improvement Program (continued)

sewer overflows or SSOs) and inflow/infiltration (I/I). Inflow and infiltration are the intrusion of groundwater and storm water runoff into the collection system, which can deplete capacity in sewer mains and at wastewater treatment plants. As part of this comprehensive evaluative process, the District developed and implemented a program to monitor wastewater flows from the various parts of the sewerage system. The flow monitoring data was used to develop a computer hydraulic model of the flows of the sewerage system to help identify and remediate the worst areas of inflow and infiltration. In 1999, MSD began an aggressive line cleaning and television inspection program wherein the District contracted with outside companies to clean the pipes with water under high pressure and then to send a video camera (also known as closed circuit television or CCTV camera) through the line. The videotapes have enabled the District to more accurately determine the condition of the lines and to prioritize necessary repairs. Each year 10% of the pipes will be cleaned and then inspected by CCTV cameras to maintain the efficient operation of the collection system. The District developed a proactive cost‐effective rehabilitation strategy with the development of the Pipe Rating Program. Pipe rating is a proactive planning tool, which utilizes Closed Circuit Television (CCTV) information, GIS database, and actual maintenance history to view, rate, and computer‐score pipe segments based on a number of factors. These factors, manhole‐to‐ manhole, include work order history, number and severity of defects, and record overflows on that segment, which are combined to yield a numerical rating used to prioritize efforts. Pipe Rating minimizes costs by helping the District focus rehabilitation dollars where they are needed most, rather than the usual full‐scale replacement of entire collector lines. In recognition of this innovative program, the Association of Metropolitan Sewerage Agencies (AMSA) awarded the District one of only two 2003 National Environmental Achievement Awards.

Wastewater System Master Plan Realizing the need for a comprehensive long‐term plan, which would address both emerging environmental regulations and land use considerations, the District contracted with a professional engineering firm to develop a detailed action plan for infrastructure growth and maintenance, while keeping user rates at an affordable level. The Wastewater System Master Plan was completed in 2001, citing the single most compelling system need for MSD was to control SSOs. The Plan focused on the Collection System. The Master Plan recommended a three‐prong approach to achieve this goal. The first prong consists of an effective management, operation, and maintenance (MOM) program to reduce line blockages and optimize spill responses when they occur. The second prong consists of an on‐ going rehabilitation program to improve the structural condition of the system and to reduce infiltration/inflow. The third prong requires implementation of an effective means of providing increased system conveyance and treatment capacity © to handle wastewater flows from existing high infiltration/inflow and from future projected dry‐weather flows. Capital Improvement Program

Page 101

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

BUDGET T DOCUMENT – FY2012

Capital Improovement Prograam (continnued)

In 2008,, McGill Asssociates com mpleted a Collection C Syystem Masteer Plan (thee “2008 Collection System P Plan”). The 2 2008 Collecttion System Plan focusees on the Disstrict’s comp prehensive ggrowth issues byy incorporatting all of the e recent planning and zooning changges from thee District’s m member agenciess. This plan aalso describes where an nd how areaas will be seerved and prrovides for o orderly growth o of the sewerr system to m meet the ne eeds of the rregion as a w whole for the future. The 2001 Master Plan, the 2007 2 Facilities Plan and d the 20088 Collection System plaan are som metimes collectively referred to as the “M Master Planss”.

Types off Projects The projects in the C CIP are classiified into sevveral types, based on th he objective of the projeect. The mined and sccheduled baased on thee Master Plaan, the pipee‐rating scorre, and projects are determ ng of the Disstrict. other facctors impactting the overrall well‐bein The Interceptor and d Wet Weath her Rehabilittation proje cts address the third prrong of the Master Plan by providing increased i syystem convveyance. Thee General SSewer Rehaabilitation p projects combine e the first an nd second prongs by surrveying all liines to plan maintenancce activities and to improve the structu ural conditio on of the sysstem. The Private Seweer Rehabilitaation projectts have the sam me objectives as the Ge eneral but are a separat ely presented to addreess environmental concernss resulting from f sewerss that were not publiclyy maintained d at the tim me the Distriict was formed. A limited am mount of fun nding is budgeted annuaally to addreess the prob blem location ns on a “worst fiirst” basis ass identified.

The District’s Water Reclamation Facility (W WRF) has a peermitted cap pacity to treeat up to 40 million gallons of o wastewater a day, and a uses ro oughly half of this capaacity. In acccordance with the Master P Plan’s twentty year plann ning period,, there are nno plans to rreplace or eexpand the p plant in the near future. However, H Water W Reclam mation Faci lity & pum mp station improvemen nts are included d in the CIP tto maintain these facilitties at their optimum leevel and to rreplace equiipment that has exceeded itts maintenan nce level.

Capital Improvement Prrogram

P Page 102

Capital Improvement Program $ ‐

$ ‐

Middle Beaverdam Creek @ I‐26 $ 157,100 $ ‐ This project is located in North Asheville/Woodfin area and is along US 25 (Merrimon Avenue) between Elkwood Road and US 19/23 of I 240. It is comprised of 1915 LF of 30”, 126 LF of 18”, 1424 LF of 12” and 484 LF of 8” DIP. There have been a total of 4 SSO’s on this system in recent years.

South French Broad Int. ‐ Lining

$ 684,000

$ 403,000

Town Branch Interceptor Ph 2 $ 696,000 $ 10,943 This project is located in Asheville near the Norfolk Southern Train Yard at Depot Street. It is comprised of 1,450 linear feet of 30‐inch DIP, 190 linear feet of 12‐inch DIP, and 310 linear feet of 8‐inch DIP. This sewer line is in in very poor condition with a significant structural failure is close proximity to Town Branch. MSD System Services has requested for a timely replacement of the line.

West French Broad Master Plan Int. $ 438,700 $ 35,700 This project is located on the west side of the French Broad River in Southern Buncombe County, and is part of the MSD Master Plan for providing sewer service in this area. This project consists of the design and right‐of‐way acquisition for approximately 6,980 linear feet of 16" DIP gravity sewer main from the District's Clayton Road Pump Station to a point near Long Shoals Road. This is a new sewer interceptor and is not a replacement/rehabilation project. Construction will be funded by the developer, estimated at approximately $3.0 million.

This project is located in the Biltmore Estate along the French Broad river near Pony Road. It consists of lining approximately 5,000 linear feet of broken and/or cracked existing sewer pipe. The lining will reduce I&I issues, made worse by the nearby river.

$ ‐

$ 70,280

Lower Smith Mill Creek Interceptor $ 3,950,812 $ 3,879,656 This project is located in West Asheville and is located adjacent to Patton Avenue along Smith Mill Creek. It is comprised of 7,226 LF of 18” and 20” DIP. There have been numerous SSO’s on this line, and the line contains significant structural defects.

$ 866,000

$ ‐

Dingle Creek Interceptor $ 2,008,300 $ 68,774 This project is located in South Asheville and is along Dingle Creek between the Blue Ridge Parkway and the Crowfields Condominiums. It is comprised of 700 LF of 24” and 6490 LF of 20” DIP. There have been several SSO’s on this portion of the system in recent years and the line is a major source of I & I.

FY 2011‐2012 BUDGET

$ 342,300

TOTAL EST. EXPENDS THRU 6/30/11

Dingle Creek at Crowfields $ 520,815 $ 175,417 This project is located in South Asheville and is along Dingle Creek which flows through the Crowfields Condominiums. It is comprised of 738 LF of 20”, 1174 LF of 18” and 168 LF of 8” DIP and 237 LF of 15” HDPE Pipe. There have been several SSO’s on this portion of the system in recent years and the line is a major source of I & I.

INTERCEPTOR AND WET WEATHER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

$ ‐

$ 8,000

$ ‐

$ 28,768

$ 2,600

FY 2012‐2013 BUDGET

$ ‐

$ 866,000

$ 9,500

$ ‐

$ 1,500

$ ‐

FY 2013‐2014 BUDGET

$ ‐

$ 138,600

$ ‐

$ 1,895,000

$ ‐

FY 2014‐2015 BUDGET

$ ‐

$ 1,000

$ ‐

$ 14,200

$ ‐

FY 2015‐2016 BUDGET

$ ‐

FY 2016‐2021 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary

Page 103

$ ‐

$ 14,800

Biltmore WW (CDM #3) $ 440,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located near Biltmore Village and is comprised of 2,200 LF of 18‐inch DIP.

Caribou Road WW (CDM #5) $ 503,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located in South Asheville near Sweeten Creek Road and is comprised of 3,000 LF of 8‐inch through 12‐inch DIP.

Capital Improvement Program

Christian Creek WW (CDM #7) $ 727,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located in East Asheville and is comprised of 3,500 LF of 16‐inch through 27‐inch DIP.

Four Mile Creek WW (CDM #1) $ 589,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located in Biltmore Forest and is comprised of 3,400 LF of 12‐inch DIP.

Haw Creek WW (CDM #6) $ 657,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located in East Asheville and is comprised of 3,800 LF of 12‐inch DIP.

Lake Julian WW Interceptor Ph. 3 $ 2,466,000 $ 2,437,467 This project is located in South Asheville and is north of I‐26 across the Progress Energy Lake Julian property. It is comprised of 216 LF of 36”, 204 LF of 30”, 7270 LF of 20” and 358 LF of 8” DIP. A portion of this line runs through the Progress Energy electrical generation plant and is in conflict with their buildings and facilities, which greatly impacts maintenance and operation of the sewer system.

$ ‐

$ 657,000

$ 589,000

$ 727,000

$ 503,000

$ 440,000

$ 935,000

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ ‐

TOTAL EST. EXPENDS THRU 6/30/11

Beaverdam Creek WW (CDM #10) $ 935,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located in North Asheville and is comprised of 5,500 LF of 8‐inch through 12‐inch DIP.

INTERCEPTOR AND WET WEATHER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 104

Capital Improvement Program $ 81,500

$ 22,500

$ ‐

$ 7,000

Bradley Branch Road $ 719,900 $ 64,525 This project is located in South Asheville and is between Glen Bridge Road and the new Wal‐Mart site on Airport Road. It is comprised of 2563 LF of 8” DIP. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

Broadview Avenue $ 584,400 $ 11,300 This project is located in the Oakley Community of Asheville and consists of approximately 2,685 linear feet of 8‐inch DIP sewer replacement. The existing sewer in this location is in very poor condition and has caused numerous problems for MSD System Services staff.

Broadway Street at Bordeau Place $ 76,100 $ 6,250 This project is located in Downtown Asheville and is between Bordeau Place and Maxwell Street. It is comprised of pipe bursting 246 LF of 15" HDPE Pipe and replacing an existing 6" main with 209 LF of 8" DIP. The existing 15" system is leaking sewer into an existing storm drainage system and much of the existing 6" line is aerial across a major creek. Piers on this system are in extremely poor condition. The existing system has had several SSO’s and has been a major source of exfiltration into drainage systems..

$ ‐

$ 626,200

$ 15,300

$ ‐

$ 42,568 1.0354 $ 44,075

$ ‐

Beale Road at Copney Lane $ 830,500 $ 18,300 This project is located in South Asheville and is between Glen Bridge Road and Ducker Road near Copney Lane. It is comprised of 2070 LF of 12” DIP and 1430 LF of 8" DIP. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

GENERAL SEWER REHABILITATION

$ 1,804,380 1.0000 $ 1,804,380

$ 6,619,262 1.0000 $ 6,619,262

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

$ 17,364,007 1.0000 $ 17,364,007

$ ‐

South Swannanoa WW (CDM #4) $ 2,102,000 $ ‐ This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located near Biltmore Village and is comprised of 8,040 LF of 18‐inch through 42‐inch DIP.

$ 3,200

$ 500

$ 4,600

$ 6,700

$ 48,000

$ 877,000 1.0721 $ 940,191

$ ‐

$ 61,300

$ 1,000

$ ‐

$ 25,600

$ 2,033,600 1.1100 $ 2,257,304

$ ‐

$ 1,000

$ 482,000

$ ‐

$ 1,700

$ 15,200 1.1493 $ 17,469

$ ‐

$ 4,000

$ ‐

$ 721,600

$ 5,953,000 1.2825 $ 7,634,599

$ 2,102,000

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 290,000

TOTAL EST. EXPENDS THRU 6/30/11

Lake Julian WW Interceptor Ph. 4 $ 307,280 $ 11,305 This potential project was generated by the flow modeling software during the District’s Comprehensive Master Plan. It is an area of concern for wet‐ weather flows and is being monitored. This project is located near Biltmore Village and is comprised of 8,040 LF of 18‐inch through 42‐inch DIP.

INTERCEPTOR AND WET WEATHER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 105

$ ‐

$ 10,800

$ 3,600

$ 18,000

$ ‐

$ 13,200

Central Avenue $ 119,720 $ 3,420 This project is located in Weaverville and is comprised of 1,750 linear feet of 8‐inch DIP. The existing sewer line is undersized clay with repeated maintenance issues.

Cherokee Road $ 510,100 $ 2,600 This project is located in Asheville and begins just west of Charlotte Street and extends along the south side of Cherokee Drive to just west of Sunset Drive. It ties into the Macon Ave @ Sunset Parkway Project. It is comprised of 2238 LF of 8” DIP. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

Capital Improvement Program

Dellwood Avenue $ 126,250 $ 3,600 This project is located in the Grovemont Section of Black Mountain. It is comprised of approximately 547 linear feet of 8‐inch DIP. The existing sewer line is undersized and in very poor condition.

Dilling Avenue $ 160,400 $ 5,750 This project is located in Black Mountain and is comprised of 700 linear feet of 8‐inch DIP. The existing sewer line is 4" clay with repeated maintenance issues.

Elk Mountain Place $ 753,600 $ ‐ This project is located south of Elk Mountain Road between I‐26 and the French Broad river. It is comprised of approximately 2,110 linear feet of 8‐ inch DIP. The existing sewer is in poor condition and has experienced SSOs.

Elk Mtn. Scenic Hwy @ Edgedale Dr. $ 153,700 $ 5,200 This project is generally located along Edgedale Drive off Elk Mountain Scenic Hwy in northwest Asheville and is a replacement / rehabilation project. The existing 8" and 4" mains are in poor condition and will be replaced with approximately 785 L.F. of new 8" DIP main.

Emory Road $ 72,000 $ 1,500 This project is located in Asheville and is comprised of 300 linear feet of 8‐ inch DIP. The existing sewer line is 6" orangeburg with repeated maintenance issues.

$ 3,500

$ 1,000

$ 38,000

$ 500

$ 14,000

$ 22,000

$ 44,500

$ 4,300

$ 1,500

$ 6,500

$ 116,000

$ 4,500

$ 2,300

$ 68,100

$ 3,500

$ ‐

$ 52,300

$ 139,500

$ 4,600

$ ‐

$ 1,500

$ 2,000

$ ‐

$ 101,000

$ 750

$ 131,600

$ 4,100

$ ‐

$ 37,500

$ 402,500

$ 68,300

$ ‐

$ 593,000

$ ‐

$ 1,000

$ ‐

$ 300

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 1,600

TOTAL EST. EXPENDS THRU 6/30/11

Campus Drive @ UNCA $ 43,700 $ ‐ This project is located in Asheville on the UNCA campus and is comprised of 400 linear feet of 8‐inch DIP. The existing sewer line is aging 8‐inch clay and PVC located parallel with a creek. The existing line has presented repeated maintenance issues, including a small history of SSO's. The line has a high potential for future SSO's until it is repaired.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 106

$ 500

$ 153,500

$ ‐

$ 5,000 $ 72,500

$ ‐

$ 358,755

$ ‐

Forest Ridge Road $ 481,920 $ 11,258 This project is located in South Asheville, between Sweet Creek Road and Hendersonville Road. It is comprised of 2842 LF of 8‐inch DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Four Inch Main ‐ Dillingham Rd $ 163,500 $ 9,000 This project is located in South Asheville, near Haw Creek Road. It is comprised of 1200 LF of 8‐inch DIP. The current line is undersized for the properties it serves. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Capital Improvement Program

Four Inch Main ‐ Gladstone Road $ 142,300 $ 19,375 This project is located in Asheville just off of Fairway Drive near the City of Asheville Municipal Golf Course. It is comprised of 697 linear feet of 8‐ inch DIP. The existing sewer line is undersized and in very poor condition.

Four Inch Main ‐ Mountain Terrace $ 102,300 $ 24,800 This project is located in West Asheville, near Leicester Highway. It is comprised of 448 LF of 8‐inch DIP. The current line is undersized for the properties it serves. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Four Inch Main ‐ N. Griffing Blvd. $ 248,018 $ 48,522 This project is located in North Asheville and is off N. Griffin Blvd at Redwood Rd. It is comprised of 663 LF of 8” DIP. It will replace an existing 4” pipe system.

Four Inch Main ‐ Town Mtn. Road $ 375,875 $ 17,170 This project is located in Asheville on Town Mountain Road just north of Interstate‐240. It is comprised of approximately 530 linear feet of 8‐inch DIP. The existing sewer line is undersized, in very poor condition, and is partially located under existing structures.

Four Inch Main ‐ Washington Ave. @ Bus Garage $ 268,600 $ 10,700 This project is located in North Woodfin at the north end of Washington Ave. It is comprised of approximately1140 linear feet of 8‐inch DIP. The existing sewer line is undersized and in very poor condition.

$ 7,000

$ ‐

$ 198,700

$ 118,000

$ 1,000

$ 467,000

$ 9,900

$ ‐

$ 2,800

$ ‐

$ 2,500

$ ‐

$ 3,000

$ 28,000

$ 4,000

$ ‐

$ 9,300

$ 241,200

$ ‐

$ 500

$ 2,900

$ ‐

$ 289,100

TOTAL EST. EXPENDS FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 THRU BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET 6/30/11

Fair Oaks Rd @ Green Rd. $ 350,511 $ 13,700 This project is located in South Asheville just north of Sweeten Creek Road. It is comprised of approximately 2478 linear feet of 8‐inch DIP. The existing sewer line is undersized and in very poor condition.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 107

$ ‐

$ 8,200

$ ‐

$ 24,000

$ ‐

Glendale Avenue $ 104,100 $ 3,700 This project is located in Asheville and begins just south of the Southern RR near Glendale Avenue and extends south on Glendale for approximately 500 feet. It is comprised of pipe bursting approximately 520 LF of existing 6” VCP to 10” HDPE and installing approximately 100 LF of 8” DIP. It will replace an existing system which has required numerous point repairs.

Hendersonville Rd. at Mills Gap Rd. $ 636,000 $ 33,600 This project is located in South Asheville and begins on the Ingles Food Store property on US 25 South and extends to and across US 25 to the Asheville Bank and Trust property at Mills Gap Road. It also extends up US 25 South approximately 120’ south of Walden Ridge Drive. It is comprised of 1108 LF of 14”, 835 LF of 12”, 125 LF – 10” and 690 LF of 8” DIP. It wi replace an existing system which has had several SSO’s and has been a major source of I & I.

Capital Improvement Program

Hendersonville Rd. @ Rosscraggon $ 771,400 $ ‐ This project is located in South Asheville between Hendersonville Rd (US 25) and Sweeten Creek Road. It is comprised of approximately 281 LF of 10" DIP and 2740 LF of 8‐inch DIP. The existing sewer line is in very poor condition.

Hickory Court $ 294,300 $ 21,972 This project is located in the Royal Pines area of southern Buncombe County. It is comprised of approximately 1,282 linear feet of 8‐inch DIP. The existing sewer line is in very poor condition.

Hilliard Ave. @ Aston Park $ 548,000 $ 17,500 This project is located in Asheville and is comprised of 5,300 linear feet of 8‐inch DIP. This project will eliminate the Aston Park pump station and alleviate maintenance issues on the current line.

Horizon Hill Rd. $ 228,800 $ 13,000 This project is located in North Asheville, near Merrimon Avenue. It is comprised of 1100 LF of 8‐inch DIP. The current line is undersized for the properties it serves. There have been multiple sanitary sewer overflows and repeated repairs on this line.

$ 52,000

$ 26,500

$ 4,800

$ 484,500

$ ‐

$ 58,000

$ 31,700

$ ‐

$ 83,000

$ ‐

$ 12,700

$ 83,000

$ 7,500

$ 781,600

$ 500

$ 5,500

$ 263,300

$ 28,000

$ 423,200

$ 91,700

$ ‐

$ 154,500

$ ‐

$ 26,000

$ 5,000

$ 1,200

$ ‐

$ 4,000

$ ‐

$ 627,700

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 83,000

TOTAL EST. EXPENDS THRU 6/30/11

Givens Estates $ 924,500 $ 47,174 This project is located in South Asheville and is between Hendersonville Hwy (US 25 South) and Sweeten Creek Road. It is comprised of 2680 LF of 12” DIP and 930 LF of 8” DIP. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 108

$ ‐

$ 1,000

$ 67,500

$ ‐

$ 8,000

Kanawha Drive $ 137,200 $ 3,100 This project is located in Montreat and is comprised of 675 linear feet of 8‐ inch DIP. The current line is 6" clay with repeated maintenance issues.

Laurel Road $ 146,500 $ 18,457 This project is located in the Royal Pines area of southern Buncombe County. It is comprised of approximately 686 linear feet of 8‐inch DIP. The existing sewer line is in very poor condition and has had repeated work orders to repair this line.

Capital Improvement Program

Long Shoals Rd. @ Allen Ave. $ 298,000 $ 5,500 This project is located at the west end of Allen Avenue, close to the intersection of Hendersonville Road and Long Shoals Road. It is comprised of approximately 2,263 linear feet of 8‐inch DIP. The existing sewer line is deformed in various locations and is in poor condition.

Louisiana Ave. @ Brucemont Circle $ 90,200 $ 3,000 This project is located within the City of Asheville and is a replacement of an existing 4" / 6" sewer line which is in poor condition and currently under 2 residential structures. It extends from Louisanna Avenue to Brucemont Circle. The existing lines will be replaced with approximately 460 l.f. of new 8" DIP main.

Macon Ave. at Sunset Parkway $ 719,000 $ 23,500 This project is located in Asheville just north of I‐240. It begins at Murdock Avenue and extends to Charlotte Street; then up Charlotte Street to Macon Ave and up Macon Ave to Glendale Road. It is comprised of 1126 LF of 10” DIP (open Trench construction) and 1503 LF of 8” HDPE (pipe bursting construction). It will replace an existing system which has had several SSO’s and has been a major source of I & I.

Meadowbrook Drive $ 175,200 $ 4,250 This project is located in Black Mountain, southwest of the NC Route 9/Blue Ridge Road intersection. It consists of replacing approximately 1,330 linear feet of deteriorating 8‐inch sewer pipe. The existing line is fractured in various locations.

Meadow Lark Road $ 59,700 $ 14,000 This project is located in South Asheville, near Haw Creek Road. It is comprised of 635 LF of 8‐inch DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

$ 37,700

$ 30,700

$ 622,500

$ ‐

$ 37,000

$ ‐

$ 22,500

$ 92,000

$ ‐

$ 1,000

$ 5,500

$ 3,000

$ 128,000

$ 3,800

$ 337,800

$ ‐

$ 139,250

$ ‐

$ 500

$ 252,000

$ 500

$ ‐

$ 107,800

$ 10,000

$ ‐

$ 82,700

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 17,500

TOTAL EST. EXPENDS THRU 6/30/11

Indiana Avenue $ 465,500 $ 8,200 This project is located in West Asheville and is between State Street and Montana Avenue. It is comprised of 2837 LF of 8” DIP.. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 109

$ 6,000

$ 2,000

$ 7,300

$ 65,750

$ 32,000

$ ‐

Merrimon Ave. at Clearview Terrace $ 89,150 $ 6,000 This project is located in Asheville and is on the west side of Merrimon Avenue between Clearview Terrace and Edgewood Knoll Road. This project has been a major maintenance problem over the past few years.

Merrimon Ave. at Stratford $ 684,000 $ 71,505 This project is located in North Asheville and is between Woodfin Road and the dam at Beaver Lake. A spur of this system crosses Merrimon Ave and connects to the line serving a portion of Reynolds Mountain. It is comprised of 1053 LF of 24” DIP, 1224 LF of 12” DIP and 225 LF of 8” DIP.. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

Capital Improvement Program

Mountainbrook Rd. @ Chunns Cove $ 240,900 $ ‐ This project is located within the City of Asheville and is a replacement of an existing line which is in poor condition and in a location difficult to access and maintain. It will tie into an existing line in Chunns Cove Road and will extend from that point up Chunns Cove Road to Mountainbrook Rd, then to Chunns View Drive and Brook Terrace. The existing 6" clay line will be replaced with approximately 1605 l.f. of 8" DIP main.

Mount Vernon Place $ 637,100 $ 25,575 This project is located in north Asheville, south of Beaver Lake near Mount Vernon Place. It consists of replacement of approximately 3,007 linear feet of 8‐inch DIP. The existing sewer is in poor condition and has experienced numerous leaks.

Old Haywood Road @ Starnes Cove Rd. $ 299,300 $ 13,500 This project is located in the Starnes Cove Community of West Asheville at the intersection of Starnes Cove Road and Old Haywood Road. It is comprised of approximately 1,575 linear feet of 8‐inch DIP sewer. The existing sewer in this location is in very poor condition and has caused numerous problems for MSD System Services Crews.

Old US 70 at Grovemont Ave. $ 737,250 $ 16,240 This project is located in Swannanoa along Old US Highway 70. It is comprised of 2,042 linear feet of 12‐inch DIP and 1,170 linear feet of 8‐ inch DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

$ 79,000

$ 500

$ 343,600

$ ‐

$ 589,400

$ 750

$ 71,600

$ 642,000

$ 500

$ 2,000

$ 6,000

$ 21,020

$ 75,400

$ 1,000

$ ‐

$ 500

$ 199,500

$ 23,300

$ ‐

$ 1,000

$ ‐

$ 252,300

$ ‐

$ 1,000

$ ‐

$ 705,000

$ ‐

$ 203,300

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 13,500

TOTAL EST. EXPENDS THRU 6/30/11

Melody Circle $ 810,100 $ 18,000 This project is located in Swannanoa, adjacent to Route 70 on Melody Circle. It is comprised of approximately 4,610 linear feet of 8‐inch DIP. The existing sewer has deteriorated from multiple root penetrations as well as various cracks and/or breaks in the pipe.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 110

$ 303,200

$ 23,000

$ 35,285

$ 1,500

$ ‐

$ 52,000

$ ‐

Patton Ave. at Parkwood Rd. $ 428,247 $ 124,897 This project is located in West Asheville near the intersection of Patton Avenue and Haywood Road. It is comprised of approximately 1,190 linear feet of 8‐inch DIP. The existing sewer line is undersized and in very poor condition.

Rash Road Rehab. $ 102,800 $ 3,250 This project is located in West Asheville and is comprised of 550 linear feet of 8‐inch DIP. The existing sewer line is 6‐inch clay that has several structural failures, running near a small pond. The potential for inflow from the pond is high should the pipe experience further structural failure.

Capital Improvement Program

Riverside Dr. / Westover Dr. $ 263,700 $ 228,280 This project is located in West Asheville, near Craven Street. It is comprised of 332 LF of 8‐inch DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Roberts Street @ Haywood Rd. Bridge $ 40,600 $ ‐ This project is located in downtown Asheville and is comprised of 200 LF of 8‐inch DIP. The existing sewer line is 6‐inch clay with a history of SSOs. A potential re‐route of the upstream sewer into a newer, larger line will eliminate the problems associated with this line.

Robinwood Avenue $ 303,100 $ 10,700 This project is located in West Asheville between Evergreen Avenue and Robinwood Avenue. It is comprised of approximately 318 LF of 8‐inch DIP. The existing sewer line is a 6" line and is in very poor condition.

Roebling Circle $ 56,830 $ 4,530 This project is located in Asheville near the intersection of Biltmore Avenue and Meadow Road. It is comprised of approximately 205 linear feet of 8‐inch DIP. The existing sewer line is undersized, in very poor condition, and the location of a documented sanitary sewer overflow.

Rowland Drive $ 420,600 $ 2,400 This project is located along Rowland Road, which is north of US 70 between Asheville and Black Mountain. It is comprised of 968 LF of 8” DIP.. It will replace an existing 4” system which has been a maintenance problem for many years.

$ 416,200

$ ‐

$ 6,100

$ ‐

$ 73,500

$ ‐

$ 2,000

$ ‐

$ 3,000

$ ‐

$ 500

$ ‐

$ 1,000

$ ‐

$ 288,900

$ 31,500

$ ‐

$ 436,500

$ ‐

$ 3,000

$ 1,500

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 30,500

TOTAL EST. EXPENDS THRU 6/30/11

Old US 70 at Pine Circle $ 483,000 $ 15,000 This project is located in Swannanoa adjacent to the NC Military Veterans Cemetery on Old US 70 Hwy. It includes replacement of approximately 3,000 feet of sewer line with new 12‐inch DIP sewer. The existing sewer line in this area is in very poor condition with numerous sanitary sewer overflows.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 111

$ 107,744

$ 7,750

$ ‐

$ 13,500

$ 1,800

$ ‐

Southside Ave. @ Buxton Ave. $ 267,850 $ ‐ This project is in Asheville and along Southside Avenue and Buxton Drive. The existing 8" VCP main is in poor condition and at least 2 sections are under existing buildings. The new line will tie into the Short Coxe at Southside Project near the beginning of that project. The new line will consist of installing be approximately 1141 L.F. of 10" DIP.

Sunset Drive at Bee Tree Rd. $ 237,000 $ 6,000 This project is located in Swannanoa, near Warren Wilson College. It is comprised of 4000 LF of 8‐inch DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Sweeten Creek Ind. Park $ 488,400 $ ‐ This project is located in Asheville and is comprised of 2700 linear feet of 8‐inch DIP. The current line is 8" clay with repeated maintenance issues.

Upper Grassy Branch Rd. @ Maxwell Rd. $ 82,200 $ ‐ This project is located in East Asheville and is comprised of 580 linear feet of 8‐inch DIP. The existing sewer line is 6‐inch clay with root and odor problems.

Wendover Drive $ 449,600 $ 23,000 This project is located in West Asheville and along Caney Creek west of Sandhill Road and south of Malvern Hills. It is comprised of approximately 1868 LF of 8” DIP.. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

Willowbrook Road $ 242,500 $ 16,500 This project is located in the Haw Creek area of Asheville. It includes replacing approximately 1,480 linear feet of existing sewer with new 8‐ inch DIP. The existing sewer is in very poor condition and has caused numerous problems for System Services crews.

FY 2011‐2012 BUDGET

Short Coxe at Southside $ 918,681 $ 157,212 This project is located in South Asheville and is between McCormick Place and Southside Avenue. This project is currently under design for replacement of an existing VCP system which is in very poor condition. Several conflicts with other utilities make this project extremely difficult. It is comprised of 1164 LF of 16” DIP, 956 LF of 10” DIP and 95 LF of 8” DIP. It will replace an existing system which has had several SSO’s and has been a major source of I & I.

TOTAL EST. EXPENDS THRU 6/30/11 $ 88,000

TOTAL ESTIMATED COST

Shadowlawn Drive $ 745,460 $ 32,120 This project is located in northwest Asheville and begins just north of the Norfolk –Southern Railroad and generally runs along the rear yards of lots fronting on Shadowlawn Drive to Appalachian Way with spur lines running to Shadowlawn Drive and to Rose Mary Road and Pine Burr Road. It is comprised of 3458 LF of 8” DIP. It will replace an existing system which has been a major source of I & I.

GENERAL SEWER REHABILITATION

PROJECT NAME

Capital Improvement Program $ 4,000

$ 26,300

$ 29,600

$ 36,400

$ 30,200

$ ‐

$ 641,200

$ 45,500

FY 2012‐2013 BUDGET

$ ‐

$ 390,900

$ 2,800

$ 8,000

$ 10,800

$ ‐

$ 12,500

$ 562,600

FY 2013‐2014 BUDGET

$ ‐

$ 5,900

$ 1,000

$ 430,500

$ 189,000

$ 257,800

$ ‐

$ 17,400

FY 2014‐2015 BUDGET

$ 222,000

$ 3,500

$ 44,000

$ ‐

$ 1,000

$ 2,300

$ ‐

FY 2015‐2016 BUDGET

$ ‐

$ 4,000

$ ‐

FY 2016‐2021 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 112

Capital Improvement Program $ 4,975,184 1.0000 $ 4,975,184

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

$ ‐

$ 33,500

Braddock Way ‐ PRP 20002 $ 831,000 $ 21,553 This project is in south Asheville, in the Ballantine Park Subdivision area. It is a continuation of the Givens Estate Project. It will replace the existing VCP and DIP lines which serve homes in this are with approximately 3241 LF of 8” DIP sewer. The existing line is an old clay line and has many bad joints and broken pipe sections. It was generated by the District's Pipe Rating Program, which flags structurally‐deficient pipes using a numerical rating system.

Brookcliff Drive ‐ PRP 59001 $ 227,100 $ 16,800 This project is in North Asheville and is in the Beaverdam Creek Drainage Basin. It begins at an existing manhole on the Beaverdam Creek Interceptor and extend northward to Brookcliff Drive and up Brookcliff Drive. It is comprised of approximately 2529 LF of 8” DIP sewer. The existing line is an old clay line and has many bad joints and broken pipe sections. Much of this line is within or very near to a drainage ditch which increases the I&I into this line. It was generated by the District's Pipe Rating Program, which flags structurally‐deficient pipes using a numerical rating system.

PIPE RATED PROJECTS

$ ‐

$ 7,800,000 $ ‐ Future Projects ‐ General Rehabilitation This line item provides a placeholder for future (and unidentified) projects over the District’s ten‐year planning window. $ 7,383,482 1.0000 $ 7,383,482

$ 50,000

$ 500,000 $ 24,195 Surveys for Design This is a line item to provide on‐going funding for surveying work on new projects during the fiscal year.

$ 64,402,612 1.0000 $ 64,402,612

$ 3,300,000

$ 35,000,000 $ 6,090,655 SSD Rehabilitation & Replacement (Annual) This is a line item to provide funding for the District’s in‐house construction work. This funds labor, materials, and equipment for District staff to repair the collection system.

$ 2,800

$ ‐

$ 9,275,250 1.0354 $ 9,603,594

$ ‐

$ 50,000

$ 3,300,000

$ 7,000

$ 168,500

$ 19,837

$ 6,514,870 1.0721 $ 6,984,287

$ ‐

$ 50,000

$ 3,300,000

$ 750

$ 5,500

$ 786,600

$ 6,448,900 1.1100 $ 7,158,304

$ ‐

$ 50,000

$ 3,300,000

$ ‐

$ 3,000

$ 6,826,400 1.1493 $ 7,845,568

$ ‐

$ 50,000

$ 3,300,000

$ 176,700

$ ‐

$ 28,250,600 1.2776 $ 36,093,508

$ 8,960,000

$ 250,000

$ 16,500,000

$ 2,500

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 5,500

TOTAL EST. EXPENDS THRU 6/30/11

Woodfin Ave. @ US 19‐23 $ 192,450 $ ‐ This project is located in Woodfin between Woodfin Rd and the Craggy Mtn Line RR. It is comprised of approximately 1004 LF of 8‐inch DIP. The existing sewer line is a is in very poor condition. This is an extension of the Middle Beaverdam Ck Phase 1 & 2 projects.

GENERAL SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 113

$ 1,500

$ ‐

$ 32,500

$ 31,212

$ 21,600

$ ‐

Elk Park Drive ‐ PRP 35001 $ 405,400 $ 51,166 This project is located in Woodfin, near Elk Mountain Road. It is comprised of 2100 LF of 8‐inch DIP. It was generated by the District's Pipe Rating Program, which flags structurally‐deficient pipes using a numerical rating system.

Capital Improvement Program

Fairfax Avenue ‐ PRP 65001 $ 606,500 $ 2,962 This project is located in West Asheville. It is comprised of 2,042 linear feet of 8‐inch DIP. The existing sewer line is in very poor condition and the source of frequent repairs.

$ 353,250 $ 17,068 Moore Circle ‐ PRP 45001 This project is located in Black Mountain, near Ridgecrest. It is comprised of 1493 LF of 8‐inch DIP. Approximately 280 LF of this project is proposed being constructed using pipe‐bursting. The project was generated by the District's Pipe Rating Program, which flags structurally‐deficient pipes using a numerical rating system.

Old Home Road ‐ PRP 64001 $ 658,636 $ 627,340 This project is located just south of Weaverville along Weaverville Highway near Old Home Road. It is comprised of 2,390 linear feet of 8‐inch DIP. There has been multiple sanitary sewer overflows and repeated repairs on the existing sewer line.

Royal Pines Drive ‐ PRP 47009 $ 717,800 $ 9,500 This project is located in South Asheville, between Hendersonville Road and Sweet Creek Road. It is comprised of 3500 LF of 8‐inch DIP. It was generated by the District's Pipe Rating Program, which flags structurally‐ deficient pipes using a numerical rating system.

Scenic View Drive ‐ PRP 29020 $ 288,800 $ 5,800 This project is located in eastern Buncombe County just off of Old US Highway 70. It is comprised of 1,619 linear feet of 8‐inch DIP. The existing sewer line is in very poor condition, the source of frequent repairs.

$ 283,000

$ 3,800

$ ‐

$ 299,500

$ ‐

$ 352,700

$ 4,196

$ ‐

$ 682,900

$ ‐

$ 4,000

$ 603,500

$ ‐

$ 414,100

$ ‐

$ 4,200

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 6,500

TOTAL EST. EXPENDS THRU 6/30/11

Crockett Road ‐ PRP 36002 $ 474,985 $ 45,987 This project is in East Asheville, off US 70 (Tunnel Road) at Crockett Road. It begins at an existing manhole on the north side of US 70, extend under US 70 and up Crockett Road to Oak Street. Other lines extend to Overbrook Place and Beechwood Road. . It is comprised of 2088 LF of 8” DIP sewer. The existing line is an old clay line and has many bad joints and broken pipe sections. It was generated by the District's Pipe Rating Program, which flags structurally‐deficient pipes using a numerical rating system.

PIPE RATED PROJECTS

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 114

Capital Improvement Program $ 1,324,312 1.0000 $ 1,324,312

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

$ 22,400

$ 313,500

$ 5,000

Joshua Ridge USR $ 106,800 $ ‐ Several property owners in the subject area have reported backups. MSD staff responded to the calls and found the property owners to be on a private sewer system. The property owners have been given the option to participate in our unclaimed sewer rehabilitation program, and will likely agree to participate.

Rollingwood Road USR $ 331,833 $ 18,333 This project is located in East Asheville, near Chunn’s Cove Road. It is comprised of 2225 LF of 8‐inch DIP. The existing private sewer is in bad shape. There has been multiple sanitary sewer overflows and repeated repairs on the existing sewer line.

Transfer of Private Sewers to MSD $ 50,000 $ 7,571 This is a line item to provide on‐going funding for the legal costs associated with attorney review of developer‐constructed, private systems to the District. It is associated with new development.

UNCLAIMED SEWER REHABILITATION

$ ‐

Pipe Rated Projects ‐ Future Lining Contracts $ 7,717,500 $ ‐ This line item provides a placeholder for future (and unidentified) lining projects over the District’s ten‐year planning window. These projects are generated by the District’s Pipe Rating Program. $ 835,534 1.0000 $ 835,534

$ 902,500

Pipe Rated Project Contract #6 (Lining) $ 902,500 $ ‐ This project is comprised of multiple locations within Buncombe County. It is comprised of lining approximately 10,456 linear feet of existing 6, 8, 10, and 12‐inch pipe which was selected by MSD's Pipe Rating Program for proactive rehabilitation of potentially problematic line sections.

$ 14,080,149 1.0000 $ 14,080,149

$ 292,000

VA Hospital ‐ PRP 28001 $ 302,161 $ 6,351 This project is in East Asheville, and is within the property known as the Veterans Administration Hospital. It begins at a manhole on the southern end of the property, which is the upper limits of the US 70 @ the Parkway project and extend to the northern limits of the hospital site. It is comprised of 951 LF of 12” DIP and 820 LF of 8” DIP sewer. The existing line is an old clay line and has many bad joints and broken pipe sections.

FY 2011‐2012 BUDGET

$ 3,000

TOTAL EST. EXPENDS THRU 6/30/11

Sycamore Terrace ‐ PRP 34012 $ 594,517 $ 31,007 This project is located in the Arden Area of Southern Buncombe County between Sweeten Creek Road and Hendersonville Road. It is comprised of 3,336 linear feet of 8‐inch DIP. There has been multiple sanitary sewer overflows and repeated repairs on the existing sewer line.

PIPE RATED PROJECTS

PROJECT NAME

TOTAL ESTIMATED COST

$ 5,000

$ ‐

$ 80,400

$ 949,796 1.0354 $ 983,419

$ ‐

$ 3,800

$ ‐

FY 2012‐2013 BUDGET

$ 5,000

$ ‐

$ 500

$ 2,452,917 1.0721 $ 2,629,657

$ ‐

$ 560,080

FY 2013‐2014 BUDGET

$ 5,000

$ ‐

$ 500

$ 796,300 1.1100 $ 883,896

$ ‐

FY 2014‐2015 BUDGET

$ 5,000

$ ‐

$ 3,000

$ 1,105,500 1.1493 $ 1,270,549

$ 1,102,500

$ ‐

FY 2015‐2016 BUDGET

$ 25,000

$ ‐

$ 5,512,500 1.2773 $ 7,040,949

$ 5,512,500

$ ‐

FY 2016‐2021 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 115

Capital Improvement Program $ 1,000,000

$ 50,000

$ 5,860,000

$ 15,000

Electrical Improvements $ 2,766,326 $ 266,326 This project is to update the District's aged electrical system at the plant. It will add multiple power feeds for several primary processes (currently there is just one main feed, and it lacks sufficient redundancy). Additional standby generation capacity will be added in order that full process treatment can be maintained during a power outage.

Building Trades ‐ Roofing & Misc. $ 500,000 $ 50,000 This is a line item to provide on‐going funding for the maintenance and repair of the District’s buildings.

Carrier Bridge Pump Station Elimination $ 59,700 $ 9,650 The Carrier Bridge Pump Station is located at the confluence of the French Broad and Swannanoa Rivers, and is the District's largest pump station with a capacity of 20 MGD. MSD is investigating the feasibility of eliminating this station by installing a new 10,000 linear foot gravity sewer interceptor on the west side of the French Broad River, to an existing downstream crossing. If this is feasible, significant cost & liability associated with operating/maintaining this large pump station could be eliminated.

Final Microscreen Replacement $ 10,209,700 $ 3,818,597 This project is located at the District’s Water Reclamation Facility (WRF). It is for the replacement of the Final Microscreens, which is a process that was intended to remove solids from the treated wastewater. The existing process has been problematic, maintenance‐intensive, and difficult to maintain since its construction in the 1980’s. It is being replaced with a significantly better process, which will be more cost‐efficient over its life‐ cycle. The new filters will be much more efficient, and save an estimated $87,000 per year in energy costs.

Flow Monitoring $ 171,610 $ 141,610 This project is for the District’s Flow Monitoring program, and is used to maintain the District’s eleven flow meters placed in strategic locations within the collection system. Flows are monitored regularly to evaluate system performance.

TREATMENT PLANT & PUMP STATION IMPROVEMENTS

$ 25,904 1.0000 $ 25,904

$ 340,900 1.0000 $ 340,900

$ 1,316,033 1.0000 $ 1,316,033

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

FY 2011‐2012 BUDGET

$ ‐

TOTAL EST. EXPENDS THRU 6/30/11

Unclaimed Sewer Rehab. (Future Projects) $ 827,400 $ ‐ This line item provides a placeholder for future (and unidentified) USR projects over the District’s ten‐year planning window. These projects are generated through the Districts Unclaimed Sewer Program.

UNCLAIMED SEWER REHABILITATION

PROJECT NAME

TOTAL ESTIMATED COST

$ 15,000

$ 530,000

$ ‐

$ 50,000

$ 1,500,000

$ 85,400 1.0354 $ 88,423

$ ‐

FY 2012‐2013 BUDGET

$ ‐

$ 50,000

$ ‐

$ 105,500 1.0721 $ 113,102

$ 100,000

FY 2013‐2014 BUDGET

$ ‐

$ 50,000

$ ‐

$ 105,500 1.1100 $ 117,105

$ 100,000

FY 2014‐2015 BUDGET

$ ‐

$ 50,000

$ ‐

$ 108,000 1.1493 $ 124,124

$ 100,000

FY 2015‐2016 BUDGET

$ ‐

$ 250,000

$ ‐

$ 525,000 1.2773 $ 670,566

$ 500,000

FY 2016‐2021 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 116

Capital Improvement Program $ ‐

$ 7,020,000 1.0000 $ 7,020,000

Weaverville Pumping System Rehabilitation $ 3,514,100 $ 308,583 This project extends from the MSD WRF north to the Weaverville Pump Station No. 1. It is comprised of replacing approximately 10,579 linear feet of 12‐inch DIP force main with new 18‐inch force main piping as reccomended in the Weaverville Pump Station Study.

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

Design, ROW, & Const. Mgmt. Expenses $ 29,973,218 $ 2,557,474 This line item is for expenses related to the District's Capital Improvement Program (CIP). Included are salaries for the CIP Division, capital equipment, and bond debt expenses related to the financing of the CIP program.

$ 2,723,000

$ ‐

Slide Gate Repair $ 250,000 $ ‐ This project is located at the WRF. The slide gates at the head of the Rotating Biological Contactor (RBC) basin are reaching the end of their life and need to be replaced. This project was generated through the District’s WRF Facilities Plan.

DESIGN, ROW, & CONSTRUCTION MANAGEMENT EXPENSES

$ 20,000

SCADA @ WRF $ 464,200 $ 444,096 The District utilizes a Supervisory Control and Data Acquisition (SCADA) system to remotely monitor and control various plant operations. This is a line item to upgrade the aged and obsolete SCADA communication system.

$ 5,038,862 1.0000 $ 5,038,862

$ ‐

RBC Replacement $ 600,000 $ ‐ This project is located at the WRF. The Rotating Biological Contactors (RBC’s) are a system which uses rotating discs to biologically treat the wastewater. The units are heavy, and over time the rotating shaft may fail due to fatigue. This line item provides a placeholder for future replacement of failed RBC’s. This project was generated through the District’s WRF Facilities Plan.

$ 18,685,636 1.0000 $ 18,685,636

$ 25,000

FY 2011‐2012 BUDGET

Plant Security Upgrades $ 25,000 $ ‐ This project is for the installation of secure card‐reader locks at critical locations within the treatment plant . Authorized personnel will continue to have easy access, yet all access will be controllable, recorded, and secure.

TOTAL EST. EXPENDS THRU 6/30/11 $ ‐

TOTAL ESTIMATED COST

Headworks Odor Control $ 125,000 $ ‐ This project is located at the WRF. This line item provides a placeholder for a possible future project within ten‐year planning window. As residential development approaches the plant boundary, odor may present a future concern. This project was generated through the District’s WRF Facilities Plan.

TREATMENT PLANT & PUMP STATION IMPROVEMENTS

PROJECT NAME

$ 2,789,125

$ 2,305,000 1.0354 $ 2,386,597

$ 210,000

$ ‐

FY 2012‐2013 BUDGET

$ 2,803,554

$ 771,000 1.0721 $ 826,553

$ 471,000

$ 250,000

$ ‐

FY 2013‐2014 BUDGET

$ 2,872,049

$ 2,674,000 1.1100 $ 2,968,150

$ 2,524,000

$ ‐

$ 100,000

$ ‐

FY 2014‐2015 BUDGET

$ 2,942,477

$ 275,000 1.1493 $ 316,057

$ ‐

$ 100,000

$ ‐

$ 125,000

FY 2015‐2016 BUDGET

$ 15,843,012

$ 650,000 1.2634 $ 821,187

$ ‐

$ 400,000

$ ‐

FY 2016‐2021 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 117

$ 3,023,000

$ 146,181,655

BUDGET SUMMARY SUBTOTAL with Inflation

Capital Improvement Program $ 200,000

$ 19,687,776

REIMBURSEMENT PROJECTS $ 2,000,000 $ 87,576 This line item provides for reimbursements to others for annexation agreements, developer‐reimbursements, and cost‐share projects.

TOTAL

$ 22,597,455

$ 1,000,000

CONTINGENCY $ ‐ The District utilizes a flat contingency of $1,000,000 per fiscal year. In years past, this amount was ten percent of the total budget, which unnecessarily inflated the budget because actual project costs typically track estimated costs closely. Using this amount provides adequate cushion for unexpected projects, events, or emergencies – yet it does not overly raise the approved budget for each fiscal year.

$ 148,181,655

$ 18,487,776

$ 22,509,879

$ 2,606,836

$ 30,333,218

SUBTOTAL

$ 16,105,233

$ 200,000

$ 15,905,233

$ 2,799,125

$ 10,000

$ 14,497,343

$ 200,000

$ 14,297,343

$ 2,803,554

$ ‐

$ 16,456,809

$ 200,000

$ 16,256,809

$ 2,872,049

$ ‐

$ 12,716,244

$ 200,000

$ 12,516,244

$ 2,942,477

$ ‐

$ 69,103,823

$ 1,000,000

$ ‐

$ 68,103,823

$ 15,843,012

$ ‐

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ 300,000

TOTAL EST. EXPENDS THRU 6/30/11

Work Order Management Software $ 360,000 $ 49,362 This line item is for the replacement of the District's work order management system. The current system is beyond its capacity, error‐ prone, and must be replaced. The new software will allow for more efficient management of the work related to the District's capital assets. Also included is software for managing the District's closed‐circuit TV process for TV'ing pipes and the Pipe‐Rating Program.

DESIGN, ROW, & CONSTRUCTION MANAGEMENT EXPENSES

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Program Summary (continued)

Page 118

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

BUDGET T DOCUMENT – FY2012

Impactt of CIPP on Opeerations

One of the purposess of a budget documen nt is to desccribe the im mpact of sign nificant nonroutine capital exxpenditures on a govern nment’s currrent and futuure operatin ng budgets. For most mu unicipal and coun nty governm ments, nonrroutine capital improveements conssist of expaansion of faacilities, which offten result in higher operating o costs. For eexample, larrger buildin ngs increasee utility expensess, and new sttructures such as librarie es or swimm ming pools in nvolve hiringg additional staff. In addition, for most m municipal and d county governments, nonroutine capital imp provements are, for the most part, based upon the de ecisions of the local govverning authority. The Distrrict’s CIP is different in n two respects. First, allmost all no onroutine caapital expen nditures involve rehabilitation n of alreadyy existing se ewer pipe innfrastructure, and seco ondly, the D District’s capital im mprovementts to infrastructure are e mandatedd by the sttate environ nmental reggulatory departme ent, imposin ng limits on d discretionaryy action andd cost. Through major capitaal improvem ments to the sewer collecction system m, the Districct expects to o realize long‐term m cost reducction in wastewater treaatment ope rations. Thee following ssummary illu ustrates the impact of the Caapital Improvement Program on thee District’s ccurrent and future operrational budgets.

Capital Improvement Prrogram

P Page 119

Dingle Creek Interceptor No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Lower Smith Mill Creek Interceptor No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Middle Beaverdam Creek @ I‐26 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

South French Broad Int. ‐ Lining No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Town Branch Interceptor Ph 2 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

West French Broad Master Plan Int. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Beaverdam Creek WW (CDM #10) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Biltmore WW (CDM #3) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Dingle Creek at Crowfields No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

INTERCEPTOR AND WET WEATHER REHABILITATION

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary

Page 120

Capital Improvement Program $0

Christian Creek WW (CDM #7) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Mile Creek WW (CDM #1) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Haw Creek WW (CDM #6) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Lake Julian WW Interceptor Ph. 3 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Lake Julian WW Interceptor Ph. 4 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

South Swannanoa WW (CDM #4) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total Interceptor & Wet Weather Rehabilitation

Beale Road at Copney Lane No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Bradley Branch Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Caribou Road WW (CDM #5) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

INTERCEPTOR AND WET WEATHER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 121

Broadway Street at Bordeau Place No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Campus Drive @ UNCA No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Central Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Cherokee Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Dellwood Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Dilling Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Elk Mountain Place No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Elk Mtn. Scenic Hwy @ Edgedale Dr. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Broadview Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 122

Fair Oaks Rd @ Green Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Forest Ridge Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Inch Main ‐ Dillingham Rd No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Four Inch Main ‐ Gladstone Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Inch Main ‐ Mountain Terrace No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Inch Main ‐ N. Griffing Blvd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Inch Main ‐ Town Mtn. Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Four Inch Main ‐ Washington Ave. @ Bus Garage No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Emory Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 123

Glendale Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Hendersonville Rd. at Mills Gap Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Hendersonville Rd. @ Rosscraggon No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Hickory Court No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Hilliard Ave. @ Aston Park No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Horizon Hill Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Indiana Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Kanawha Drive No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Givens Estates No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 124

Long Shoals Rd. @ Allen Ave. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Louisiana Ave. @ Brucemont Circle No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Macon Ave. at Sunset Parkway No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Meadowbrook Drive No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Meadow Lark Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Melody Circle No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Merrimon Ave. at Clearview Terrace No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Merrimon Ave. at Stratford No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Laurel Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 125

Mount Vernon Place No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Old Haywood Road @ Starnes Cove Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Old US 70 at Grovemont Ave. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Old US 70 at Pine Circle No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Patton Ave. at Parkwood Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Rash Road Rehab. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Riverside Dr. / Westover Dr. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Roberts Street @ Haywood Rd. Bridge No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Mountainbrook Rd. @ Chunns Cove No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 126

Roebling Circle No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Rowland Drive No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Shadowlawn Drive No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Short Coxe at Southside No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Southside Ave. @ Buxton Ave. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Sunset Drive at Bee Tree Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Sweeten Creek Ind. Park No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Upper Grassy Branch Rd. @ Maxwell Rd. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Robinwood Avenue No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 127

Capital Improvement Program $0

Willowbrook Road No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Woodfin Ave. @ US 19‐23 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

SSD Rehabilitation & Replacement (Annual) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Surveys for Design No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Future Projects ‐ General Rehabilitation No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total General Sewer Rehabilitation

Braddock Way ‐ PRP 20002 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Brookcliff Drive ‐ PRP 59001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

PIPE RATED PROJECTS

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Wendover Drive No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

GENERAL SEWER REHABILITATION (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 128

Elk Park Drive ‐ PRP 35001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Fairfax Avenue ‐ PRP 65001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Moore Circle ‐ PRP 45001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Old Home Road ‐ PRP 64001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Royal Pines Drive ‐ PRP 47009 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Scenic View Drive ‐ PRP 29020 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Sycamore Terrace ‐ PRP 34012 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

VA Hospital ‐ PRP 28001 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Crockett Road ‐ PRP 36002 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

PIPE RATED PROJECTS (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 129

Capital Improvement Program $0

Pipe Rated Projects ‐ Future Lining Contracts No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total Pipe Rated Projects

Transfer of Private Sewers to MSD No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Unclaimed Sewer Rehab. (Future Projects) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total Unclaimed Sewer Rehabilitation

Electrical Improvements No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Building Trades ‐ Roofing & Misc. No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

WATER RECLAMATION FACILITY & PUMP STATION IMPROVEMENTS

Rollingwood Road USR No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Joshua Ridge USR No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

UNCLAIMED SEWER REHABILITATION

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Pipe Rated Project Contract #6 (Lining) No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

PIPE RATED PROJECTS (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 130

Flow Monitoring No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Headworks Odor Control No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program

Plant Security Upgrades No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

RBC Replacement No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

SCADA @ WRF No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Slide Gate Repair No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

($97,919)

($100,857)

($103,883)

($568,072)

Weaverville Pumping System Rehabilitation $0 $0 $0 $0 $0 $0 No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program. $ (92,298) $ (95,067) $ (97,919) $ (100,857) $ (103,883) $ (568,072) Total Water Reclamation Facility & Pump Station Improvements

($95,067)

($92,298)

Final Microscreen Replacement Impact to Operating Budget ‐ efficiencies gained will reduce energy costs.

Carrier Bridge Pump Station Elimination No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET WATER RECLAMATION FACILITY & PUMP STATION IMPROVEMENTS (Continued)

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 131

FY 2011‐2012 FY 2012‐2013 FY 2013‐2014 FY 2014‐2015 FY 2015‐2016 FY 2016‐2021 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Capital Improvement Program

Interceptor & Wet Weather Rehabilitation General Sewer Rehabilitation Pipe Rated Projects Unclaimed Sewer Rehabilitation Water Reclamation Facility & Pump Station Improvements Design, Row, & Construction Management Expenses TOTAL

OPERATIONAL IMPACT SUMMARY

Total Design, ROW, & Construction Management Expenses

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ (92,298) $ (95,067) $ (97,919) $ (100,857) $ (103,883) $ (568,072) $ (74,137) $ (76,361) $ (78,652) $ (81,012) $ (83,442) $ (456,296) ($166,436) ($171,429) ($176,571) ($181,869) ($187,325) ($1,024,368)

$ (74,137) $ (76,361) $ (78,652) $ (81,012) $ (83,442) $ (456,296)

Work Order Management Software $ (74,137) $ (76,361) $ (78,652) $ (81,012) $ (83,442) $ (456,296) Impact to Operating Budget ‐ efficiencies gained will be to keep staffing at current funding level

Design, ROW, & Const. Mgmt. Expenses No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

DESIGN, ROW, & CONSTRUCTION MANAGEMENT EXPENSES

PROJECT NAME: OPERATING EFFECT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC BUDGET DOCUMENT – FY2012

Operational Impact Summary (continued)

Page 132

Debt Financing

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Debt Financing

Debt Management Prior to the 1990s, the District’s policy was to fund capital improvements from user fees. Having inherited aging collector lines, some in excess of 100 years old, this policy forced the District to increase rates dramatically yet never provided enough funding to keep up with the magnitude of desperately needed repairs. Coming to realize the benefit of integrating capital‐planning and debt‐financing activities, the District Board developed a long‐range plan to utilize bonds and pay‐ as‐you‐go in a coordinated capital improvement plan. This combined strategy allows for more equity between long‐term and new ratepayers while providing the necessary funding for an adequately functioning system. Issuing debt provides the capital to rehabilitate crumbling infrastructure while allowing present and future ratepayers who will enjoy the benefit to share the cost through annual principal and interest payments. This contrasts with a strategy that uses only pay‐as‐you‐go whereby a resident will pay higher rates for many years to accumulate the funds needed for rehabilitation before enjoying any benefit, yet new users joining after completion of a project will have immediate use of the new facilities without sharing in any of the cost. Another advantage of combining borrowed funds with current funding is the ability to structure debt repayment schedules to avoid dramatic rate increases otherwise needed to provide adequate amounts for multi‐million dollar projects. The District’s bonds are rated by national rating agencies as follows:

Moody's Investors Service Aa2

Standard & Poor's AA

Fitch Ratings AA+

In May 2010, the District received two rating upgrades. Moody’s Investors Service raised the District credit rating from Aa3 to Aa2. Additionally, Fitch Ratings raised the District credit rating from AA to AA+. Both upgrades were a direct result of the agencies recalibrating their respective global rating scale. These high ratings enable the District to pay a lower rate of interest than many other utilities, which has a positive effect on the current and future budgets. Unlike North Carolina’s cities and counties, MSD does not have a debt limit. However, provisions in the District’s Bond Order require minimum debt coverage of 120% of net revenues to bonded debt service. The Board established a revenue policy, which sets a goal for debt coverage ratio to be approximately 150% for forecasting and planning purposes, realizing the impact of the increased debt coverage ratio on bond ratings. The District maintains a ten year forecast to budget capital improvements financed by a combination of debt and current fees. Based on projections using modest, consistent rate increases and capital improvement projects as outlined in the District’s 10‐year Capital Improvement Plan, an additional $24 million in debt is anticipated to be issued in fiscal year 2015 without affecting the planned rate of user charge increases.

Debt Financing

Page 133

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Debt Financing (continued)

Capital Projects Funding Funding for capital projects comes from a combination of revenue bonds and pay‐as‐you‐go financing. Details may be found in the Policies & Budget Process tab of this budget document where Debt Policy is presented and in the schedule, “Budget/Rate Forecast” which illustrates the timing of debt issues and accumulation of revenues over expenditures anticipated to be available for capital financing. Generally speaking, half of the funds for capital improvements come from debt financing, with the other half funded by the excess of revenues over expenditures (pay‐as‐ you‐go). During FY10, the District issued $17.2 million fixed rate revenue bonds. The District anticipates expending the entire amount of proceeds within two years. During this time, the District will also accumulate funding from operations to finance a portion of the capital budget until the next debt issuance, anticipated to be in FY13. Additionally, the District issued $13.4 million fixed rate revenue refunding. This was to refund the remaining maturities of the 1999 Series Bonds. Also during FY10, the District entered into an agreement with the Department of Environmental and Natural Resources to fund a sanitary sewer project. The District agrees to pay the State of North Carolina the principal sum of $707,346. As part of the American Recovery and Reinvestment Act of 2009, the unpaid principal sum is immediately reduced by one‐half of the loan amount as “Principal Forgiveness”. Interest will accrue at the rate of 0% per annum on the unpaid principal sum of the Water Pollution Control Revolving Fund. As of June 30, 2011, the District will have $101.5 million par value of outstanding revenue bond debt. During FY12, over $4.8 million in principal will be repaid. The District anticipates issuing an additional $24 million in revenue bonds in FY15. Debt service from this future bond issue has been included in the District’s long‐term budget plan and sewer rate increases. A summary of outstanding debt at June 30, 2011 and anticipated principal repayment during FY 12 are on the following two (2) pages.

Debt Financing

Page 134

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Debt Financing (continued)

Outstanding Debt as of June 30, 2011 Original Balance Balance Issue Additions Retirements 6/30/2011 6/30/2012 Amount Revenue bonds (Series 2001) issued for construction costs of a portion of the construction costs of a five‐year capital improvement plan adopted by the District: 2.80% to 4.50% serial bonds issued December 13, 2001, with maturities on each July 1, 2004 through 2013 varying from $250,000 to $555,000; interest payable semi‐annually $ 4,545,000 $ 1,045,000 $ ‐ $ 510,000 $ 535,000 Total Bonds–Series 2001 $ 4,545,000 $ 1,045,000 $ ‐ $ 510,000 $ 535,000 Enka‐Candler Water and Sewer District Bonds liability assumed by Metropolitan Sewerage District of Buncombe County, North Carolina on July 2, 1990 as stated in the sewer consolidated agreement: 5.00% serial bonds assumed July 2, 1990 with maturities on each June 1 through 2024 varying from $19,000 to $64,000, interest payable annually. $ 1,500,000 $ 759,000 $ ‐ $ 53,000 $ 706,000 Total Bonds–Enka Candler Series

$ 1,500,000 $

759,000 $

‐

$ 53,000 $

Revenue Bonds Series 2003 used to refund portions of Series 1992 A&B and Series 1993A 2.0% to 5.25% serial bonds issued April 3, 2003, with maturities on each July 1, 2004 through 2022 varying from $205,000 to $2,730,000; interest payable semi‐ annually $ 23,175,000 $ 14,205,000 $ ‐ $ 4.00% term bonds issued April 3, 2003, at 100%, due July 1, 2014; interest payable semi‐annually.

706,000

‐ $ 14,205,000

$ 1,920,000 $ 1,910,000 $

‐ $

10,000 $ 1,900,000

4.00% term bonds issued April 3, 2003, at 99.096%, due July 1, 2014; interest payable semi‐annually. $ 1,875,000 $ 1,825,000 $

‐ $

20,000 $ 1,805,000

‐

30,000 $ 17,910,000

‐ $

185,000 $ 33,095,000

‐

185,000 $ 33,095,000

Total Bonds–Series 2003

$ 26,970,000 $ 17,940,000

Revenue Bonds, Series 2008A issued to refund Series 2005 Revenue Bonds Interest at variable rates in the weekly mode, payable monthly, due serially until 2031. $ 33,635,000 $ 33,280,000 $ Total Bond–Series 2008A

Debt Financing

$ 33,635,000

$ 33,280,000

Page 135

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Debt Financing (continued)

Outstanding Debt as of June 30, 2011 Original Balance Balance Issue Additions Retirements 6/30/2011 6/30/2012 Amount Revenue Bonds, Series 2008B issued to refund Series 2004 Revenue Bonds Interest at variable rates in the weekly mode, payable monthly, due serially until 2031. $ 22,165,000 $ 20,705,000 $ ‐ $ 770,000 $ 19,935,000 Total Bond–Series 2008B

$ 22,165,000 $ 20,705,000

Revenue Bonds, Series 2009A issued to construct certain sewerage projects 2.0% to 5.00% serial bonds issued October 7, 2009, with maturities on each July 1, 2010 through 2024 varying from $400,000 to $700,000; interest payable semi‐ annually $ 7,920,000 $ 7,520,000 $

‐

770,000 $ 19,935,000

‐ $

415,000 $ 7,105,000

5.00% term bonds issued October 7, 2009, at 109.001%, due July 1, 2029; interest payable semi‐ annually.

$ 4,065,000 $ 4,065,000 $

‐ $

‐ $ 4,065,000

5.00% term bonds issued October 7, 2009, at 107.240%, due July 1, 2034; interest payable semi‐ annually.

$ 5,220,000 $ 5,220,000 $

‐ $

‐ $ 5,220,000

$ 17,205,000

‐

Total Bond, Series 2009A

$ 16,805,000

Revenue Bonds Series 2009B used to refund portions of Series 1999 2.0% to 5.00% serial bonds issued October 7, 2009, with maturities on each July 1, 2010 through 2019 varying from $595,000 to $3,100,000; interest payable semi‐ annually $ 13,360,000 $ 10,680,000 $

415,000 $ 16,390,000

‐ $ 2,810,000 $ 7,870,000

Total Bond, Series 2009B $ 13,360,000 $ 10,680,000 $ ‐ $ 2,810,000 $ 7,870,000 American Recovery and Reinvestment Act Revolving loan issued to construct certain sewerage projects $707,346 revolving loan issued August 18, 2009 unpaid principal sum is reduced by one‐half as "Principal Forgiveness”, interest accrues at 0%, 20 annual installments May 1, 2011 to 2030. $ 353,673 $ 319,666 $ ‐ $ 16,824 $ 302,842 Total ARRA Revolving Loan

353,673

319,666

‐

16,824 $

302,842

Total Bonds–All Series Debt Financing

$ 130,598,673 $ 101,533,666 $

‐ $ 4,789,824 $ 96,743,842 Page 136

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Aggregate Debt Service

Year Ending Enka‐Candler June 30 Bonds 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

90,950 90,300 90,550 90,650 90,600 87,400 84,200 81,000 77,800 74,600 71,400 68,200 21,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,018,650

Series 1992 A&B ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Series 2001 544,116 546,703 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,090,819

Series 2003 Refunding 853,200 856,923 855,548 4,383,038 4,377,916 3,161,366 1,479,001 1,475,136 1,469,261 1,470,386 1,466,811 1,462,993 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 23,311,579

Series 2008B Refunding 1,481,089 1,473,986 1,480,363 1,481,115 1,480,660 1,484,247 1,486,123 1,487,208 1,491,852 1,490,339 1,492,109 1,497,735 1,501,691 1,504,198 1,504,821 1,509,020 1,511,413 1,512,149 1,515,849 ‐ ‐ ‐ ‐ ‐ 28,385,966

Debt Financing

Page 137

BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Aggreg gate Debt Serviice (continnued)

Year End ding June 30 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Debt Financcing

Serie es 2008A Reffunding 1,319,157 1,298,363 1,852,202 1,851,743 1,850,168 1,857,849 1,858,620 1,859,120 1,863,272 2,967,245 2,979,356 2,979,445 2,986,599 2,986,194 2,987,324 3,000,803 3,010,738 3,017,451 3,025,226 1,304,929 1,306,777 ‐ ‐ ‐ 48,162,581 4

Series 2009 9A 1,178,375 1,180,700 1,182,575 1,182,8 850 1,180,300 1,180,9 900 1,180,700 1,179,700 1,182,8 800 1,180,0 000 1,183,150 1,180,200 1,180,8 875 1,181,750 1,180,8 875 1,178,250 1,178,750 1,182,125 1,179,0 000 1,178,250 1,179,8 875 1,178,250 1,179,8 875 1,178,750 500 28,331,5

Series 2009B ARRA Aggregate Debt Refun nding Reevolving Loan Serviice 33,210,250 33,195,925 33,235,800 73,800 73,800 73,800 656,900 652,700 647,700 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 111,820,675

16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 16,82 25 ‐ ‐ ‐ ‐ ‐ 319,66 66

8,693,962 8,659,725 8,713,863 9,080,020 9,070,269 7,862,386 6,762,368 6,751,688 6,749,509 7,199,395 7,209,651 7,205,397 5,706,989 5,688,966 5,689,845 5,704,898 5,717,726 5,728,550 5,736,274 2,487,304 2,485,777 1,178,250 1,179,875 1,178,750

142,4 441,436

P Page 138

Sta s cal Informa on

BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Generaal Reven nue by Source

FFY 2001 1 – FY 2 2010

Fiscal Year Ended June 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Industria al Sewer Chargess 2,359,405 5 2,539,868 8 3,169,870 0 2,858,675 5 2,912,188 8 2,617,298 8 2,693,328 8 1,510,669 9 1,386,132 2 1,498,529 9

Domestic Se ewer Ch harges 16,8 865,326 17,8 848,396 18,1 113,556 19,2 287,996 19,2 257,393 20,3 363,671 22,0 077,774 23,3 385,025 22,9 904,587 23,8 871,289

Facility & & Tap Fees 1,146,9355 1,518,9400 1,557,9900 2,050,3800 1,769,6200 2,481,8500 3,054,9500 3,005,1844 2,959,1155 1,654,0100

Misceellaneous

2,1170,984 1,0042,874 1,2298,681 1,0042,025 2,4436,753 2,4447,394 3,3384,897 2,4444,885 1,5556,826 1,3348,691

Totaal

22,542,650 22,950 0,078 24,140 0,097 25,239 9,076 26,375,954 27,910 0,213 31,210 0,949 30,345,763 28,806 6,660 28,372,519

Note: Does not include Capital Conttributions.

Statistical In nformation

P Page 139

BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Expensses by Function F n

FFY 2001 1 – FY 2 2010

Fiscal Year Operating Capital C Ended Expensess Imprrovement (1) (2) June 30 2001 10,212,40 01 19 9,271,119 2002 10,647,19 93 12 2,553,858 2003 10,798,60 09 8 8,441,950 2004 10,575,87 73 11 1,816,018 2005 11,169,14 48 14 4,055,591 2006 11,853,66 63 11 1,213,052 2007 11,977,24 41 12 2,574,902 2008 12,070,19 95 12 2,471,794 2009 12,808,34 49 12 2,447,791 2010 12,754,72 27 9 9,173,231

Capittal Contribu utions (3)

2,9440,894 2,8774,738 4,9224,338 3,3440,566 3,0553,623 4,1884,135 8,4004,343 6,2444,304 5,8556,798 1,1228,684

Debt Service (4) 5,397,423 5,497,793 4,691,040 4,754,836 6,179,174 7,071,308 7,650,737 8,419,405 6,413,405 7,212,980

Tottal

37,82 21,837 31,57 73,582 28,85 55,937 30,48 87,293 34,45 57,536 34,32 22,158 40,60 07,223 39,20 05,698 37,52 26,343 30,26 69,622

1 Includes general operations epreciation exp pense. 2 Excludes de 3 This include es collection syystem infrastru ucture contribu uted by develoopers. 4 Includes Bo ond Principal Exxpense and Bo ond Interest Lesss Capitalized IInterest Portio on and excludees early retirem ment of long‐term d debt.

Statistical In nformation

P Page 140

BUDGET T DOCUMENT – FY2012

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Wastew water Flow F Tab ble

FFY 2001 1 – FY 2 2010

Fiscal Y Year Ended d June 3 30

ADF (A) (mgd)

2001 1

19.4

$ 10,2 212,401

2002 2

19.2

$ 10,6 647,193

2003 3

21.8

$ 10,7 798,609

2004 4

21.9

$ 10,5 575,873

2005 5

23.9

$ 11,1 169,148

2006 6

20.7

$ 11,8 853,663

2007 7

18.2

$ 11,9 977,241

2008 8

15.8

$ 12,0 070,195

2009 9

16.5

$ 12,8 808,349

2010 0

21.8

$ 12,7 754,727

(A) ADF=Avverage Daily FFlow

Total Operaating Expensses (B)

(B) Includes Collection SSystem Operaations and Ad dministrative Expenses in aaddition to W Wastewater Treatment Expensess but excludess depreciation n.

Statistical In nformation

P Page 141

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Demographic Statistics – Service Area Population

Year

Asheville

1960 1970 1980 1990 2000

60,186 57,929 54,022 61,855 69,161

Biltmore Black Montreat Weaverville Forest Mountain 1,004 1,298 1,499 1,324 1,446

1,313

(A)

1,041

3,204

581

1,280

4,083

741

1,495

5,533

682

2,107

7,545

631

2,425

Woodfin (A) (A) 3,260 2,736 3,174

Buncombe County (B) 130,074 145,056 160,934 174,819 207,152

Note: (A) Population figures were not available during the years indicated because the cities were not incorporated. (B) Represents the entire population of Buncombe County. MSD serves only a portion of the population.

Source: North Carolina Office of State Planning

Statistical Information

Page 142

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Demographic & Economic Statistics

FY 2001 – FY 2010

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Population Per Capita Estimates 1 Income 2 208,405 210,213 212,408 215,118 216,490 220,367 225,555 228,218 230,421 233,114

27,688 27,797 27,770 29,932 31,166 33,293 34,696 34,969 Unavailable Unavailable

Civilian Labor Force 3 Median Age 1

Employed

Unemployed

Unemployment Rate

39.19 39.44 39.70 39.96 40.23 40.39 40.49 40.65 40.84 41.01

103,860 105,733 108,133 109,231 109,666 114,899 116,997 118,235 108,177 110,464

4,619 6,023 6,038 5,249 5,454 4,751 4,510 5,849 10,944 10,032

4.3% 5.4% 5.3% 4.6% 4.7% 4.0% 3.7% 4.7% 9.2% 8.3%

Note: The information above is for Buncombe County, North Carolina. The District believes that the above information is representative of the service area, which extends over approximately 80% of the county.

Sources: 1 North Carolina Office of State Budget and Management 2 Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce 3 North Carolina Employment Security Commission

Statistical Information

Page 143

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Principal Commercial Users

FY 2001- FY 2010

2001 Commercial User

Type of Business

Total Charges

2010

Percentage Rank of Total Charges 2 2.84%

Total Charges

Rank

$ 541,928

Percentage of Total Charges 2.14%

Milkco, Inc.

Dairy Products & Juices

$ 545,598

Mission Health System

Health & Emergency Services

154,687

0.80 235,074

0.93

Ridgecrest Baptist Conference Center

Christian Conference Center

‐

170,978

0.67

Colbond, Inc.

Chemical Manufacturer

‐

126,145

0.50

Givens Estates

Retirement Community

‐

123,955

0.49

Arcadia Dairy Farm

Dairy Products & Juices

‐

93,601

0.37

VA Medical Center Asheville Department of Veterans Affairs

Veterans Hospital

82,868

0.43 93,307

0.37

Jacob Holms Industries

Textile Manufacturing

‐

80,917

0.32

Day International

Textile Machine Parts

50,883

0.26 68,276

0.27

The Biltmore Company

Tourist Attraction/Winery/Resort Services

‐

61,229

0.24

Lustar Dyeing & Finishing

Textile Manufacturing

580,821

3.02 ‐

‐

Anvil Kintwear (formerly Asheville Dyeing & Finishing)

Textile Manufacturing

467,030

2.43

‐

Owen Manufacturing Company, Inc.

Textile Manufacturing

203,825

1.06 ‐ ‐

‐

Grove Park Inn

Resort/Spa/Convention Services

138,637

0.72

‐

Beacon Blankets

Textile Manufacturing

97,247

0.51

‐

Uniform Rental Service

Uniform Rental

83,678

0.44

‐

$ 2,405,274

Source: District Billing Records

Statistical Information

12.51%

‐

$ 1,595,409

6.29%

Page 144

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Principal Employers

FY 2001 – FY 2010

FY 2001

FY 2010

Employees

Rank

% of Total County Employment

Employees

Rank

% of Total County Employment

Mission Health System & Hospitals Buncombe County Public Schools

5,125 3,650

1 2

4.93% 3.51%

6,994 4,000

1 2

6.33% 3.62%

Buncombe County Government The Biltmore Company VA Medical Center ‐ Asheville

1,835 900 991

3 7 6

1.77% 0.87% 0.95%

1,673 1,583 1,139

3 4 5

1.51% 1.43% 1.03%

900 891

8 9

0.87% 0.86%

1,137 1,100 1,010

6 7 8

1.03% 1.00% 0.91%

1,237 1,200 830

4 5 10

1.19% 1.16% 0.80%

1,000 917

9 10

0.91% 0.83%

16.91%

20,553

Employer

Ingles Markets, Inc. The Grove Park Inn Resort & Spa Eaton Corporation ‐ Electrical Division City of Asheville CarePartners Sonopress, LLC Total for Principal Employers

17,559

18.61%

Note: The information above is for Buncombe County, N.C. The District believes that the above information is representative of the entire service area, w hich extends over approximately 80% of the County. Source: Asheville Area Chamber of Commerce, Economic Development Department & NC Employment Security Commission

Statistical Information

Page 145

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

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Statistical Information

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Appendix

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

About MSD, City of Asheville & Buncombe County

About MSD The MSD is a public body and body politic and corporate of the State of North Carolina, exercising public and essential governmental functions and organized under the provisions of the North Carolina Metropolitan Sewerage Districts Act, being Article 5, Chapter 162A of the General Statutes of North Carolina, as amended. The District was established in 1962 to construct and operate facilities for sewage treatment for municipalities and sanitary districts within Buncombe County. In 1967, the District completed the construction of a 25 million gallon per day (MGD) wastewater treatment plant adjacent to the French Broad River. Nineteen miles of interceptor sewer were initially built, connecting the collector sewer systems located within the municipalities and other political subdivisions, which comprised the District. Then, In the late 1980’s, the District expanded the capacity of the water reclamation facility to its current capacity of 40 MGD, rehabilitated the hydroelectric dam and powerhouse to mitigate energy costs, and built a thermal converter for sludge disposal. In July 1990, the political subdivisions comprising the District transferred their respective sewerage systems to the District. These systems had been previously owned, operated, and maintained separately by each political subdivision. The purpose of this sewer consolidation was to create a consolidated sewerage system in the urbanized portion of Buncombe County with ownership of all components of the system and responsibility for their operation, maintenance, and capital improvement centralized with the District. Before the sewer consolidation, the District had little control over the condition, operation, and maintenance of individual collector systems, which significantly affect the operational efficiency of the wastewater plant. Buncombe County is located in the Blue Ridge Mountains of Western North Carolina. The District is comprised of the following political subdivisions located within Buncombe County: City of Asheville Fairview Sanitary Sewer District Town of Montreat Skyland Sanitary Sewer District Town of Biltmore Forest Busbee Sanitary Sewer District Town of Black Mountain Swannanoa Water & Sewer District Town of Weaverville Caney Valley Sanitary Sewer District Town of Woodfin Woodfin Sanitary Water & Sewer District Beaverdam Water & Sewer District Crescent Hill Sanitary Sewer District Enka‐Candler Water & Sewer District Venable Sanitary District The District Board consists of twelve appointed members. Three (3) from the County of Buncombe, three (3) from the City of Asheville, and one (1) each from the Woodfin Sanitary Water & Sewer District, and the Towns of Biltmore Forest, Black Mountain, Montreat, Woodfin and Weaverville. Appendix

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About MSD, City of Asheville & Buncombe County (continued)

About MSD (continued) Under the North Carolina Metropolitan Sewerage Districts Act, the District is authorized, among other things, to: (a) acquire, lease, construct, reconstruct, improve, extend, enlarge, equip, repair, maintain, and operate any sewerage system or part thereof (including facilities for the generation and transmission of electric power and energy) within or without the District; (b) to issue revenue bonds to pay the costs of any of the foregoing; and (c) to fix and revise from time to time and collect rents, rates, fees and other charges for the use of or the services and facilities furnished by any sewerage system.

Appendix

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METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

BUDGET T DOCUMENT – FY2012

Districct Bound dary Map M

Appendix

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BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

About City of Asheville & Buncombe County

Population and Growth Statistics Population growth in Buncombe County has occurred largely in a linear fashion along major transportation routes, which is reflected in the configuration of the District’s service area. The District is approximately 160 square miles in total area, and comprises nearly 25% of the total land area of Buncombe County. The District’s service area corresponds generally with the urbanized core of Buncombe County, and includes small portions of northern Henderson County. The population of the area has steadily increased, as illustrated in the following chart: Year 1970 1980 1990 2000 2009 2010

Buncombe County 145,056 160,934 174,436 206,330 230,450 236,179

Henderson County 42,804 58.580 69,285 89,173 105,246 107,177

Located in approximately the geographic center of Buncombe County, the City of Asheville is the major population center in the District. About 35% of the County’s residents live in Asheville. Five incorporated towns in Buncombe County ‐ Black Mountain, Biltmore Forest, Weaverville, Woodfin, and Montreat ‐ are included in the District’s service area. Weaverville and Woodfin are north of Asheville, Black Mountain and Montreat are located in eastern Buncombe County, and Biltmore Forest is contiguous to the City of Asheville on its southern boundary. Approximately seven percent of the county’s population lives in these five towns.

Employment and Major Industries Buncombe County serves as a regional economic center for Western North Carolina. Its diverse commercial and industrial base includes manufacturing, distribution, travel and tourism, retail trade, health care and governmental services. According to the North Carolina Employment Security Commission, 110,967 people were employed in Buncombe County as of April 2011. The number of persons in the labor force has increased by 1037 over the previous year. Buncombe County’s economy has been expanding and becoming more diverse. Recognizing that textile industries no longer dominate the manufacturing base, the public and private sectors in Buncombe County have been working together to encourage the relocation and development of new industries and other economic endeavors. In addition, the Buncombe County Tourism Development Authority works to foster the continued growth of tourism and convention business. Downtown redevelopment efforts by the City of Asheville have also provided additional office, retail shop, and parking space. Appendix

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About City of Asheville & Buncombe County (continued)

Employment and Major Industries (continued) Employment in the service sector is increasing, but manufacturing remains a significant part of the local economy. The diverse products manufactured include food, textiles, apparel, wood products, printing and publishing, rubber and plastic products, fabricated metal products, industrial machinery and equipment, electrical equipment, and transportation equipment. Health care, retail sales, education, and government services are the principal employers in the growing service sector of Buncombe County’s labor force. Buncombe County serves as a regional medical center for most of western North Carolina. There are two major hospital complexes located in Buncombe County: Mission Hospital, an 800‐bed acute care medical center, and the federally funded Veteran’s Administration Medical Center, consisting of a 275‐bed acute care hospital and 64‐bed nursing facility. Also located in Buncombe County is Thoms Rehabilitation Hospital, a 100‐bed facility for the treatment of stroke and ambulation dysfunction victims and head injury patients. Tourism and the hospitality industry also constitute major segments of employment in the service sector and are projected to increase significantly. The impact of tourism is multi‐ dimensional and includes conventioneers, commercial visitors, and tourists taking advantage of the mountain scenery, moderate climate, and craft skills of persons living in the area. Closely related to the tourism industry is the growth of discount malls and outlet stores. The seasonal influx of persons from outside the region is strengthening Buncombe County’s position as the primary regional retail center for area and tourist commerce. To provide a source of funds for promoting the recreational, cultural, and other attractions of the area, Buncombe County has imposed an occupancy tax on hotel and motel rooms in Buncombe County. The revenues from this tax are used by Buncombe County’s Tourism Development Authority to promote the growth of tourism and convention business. This favorable economic environment has resulted in lower unemployment rates for Buncombe County than across the state and nation. In addition, median household income has increased by 42% in Buncombe County and 38% in the City of Asheville since 1990. According to the U. S. Department of Commerce, for the year 2000, median household income in the City of Asheville was $32,772 and in Buncombe County was $36,666. This compares with $39,184 for the state of North Carolina and $41,994 for the nation as a whole.

Education Buncombe county has two public school systems: the Asheville City Administrative Unit, which serves about 3,700 students, and the Buncombe County Administrative Unit, which serves approximately 25,000. Asheville‐Buncombe Technical Community College provides training to about 7,000 students in a variety of business, technical, and health care curricula frequently adjusted to reflect the economic development needs of the County. Warren Wilson College and Montreat College, both located in the eastern part of the County, are private four‐year colleges with a combined enrollment of approximately 2,000. Appendix

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About City of Asheville & Buncombe County (continued)

Education (continued)

The University of North Carolina at Asheville (“UNCA”) is an undergraduate, state‐supported liberal arts college with an enrollment of approximately 3,500 students. UNCA also provides graduate education programs in collaboration with other universities in the North Carolina System.

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BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Job Classification by Grade Order (effective July 1, 2011)

Annual Salary Range ‐ July 1, 2011

Grade

Minimum

Mid‐Point

Maximum

5 8 9 11 12 13 14 15 16 17 18 19 20

$ 25,492 $ 27,452 $ 28,136 $ 29,562 $ 30,299 $ 31,057 $ 31,833 $ 32,629 $ 33,446 $ 34,282 $ 35,139 $ 36,016 $ 36,917

$ 31,251 $ 33,655 $ 34,495 $ 36,242 $ 37,147 $ 38,075 $ 39,029 $ 40,002 $ 40,944 $ 42,028 $ 43,081 $ 44,157 $ 45,262

$ 36,986 Construction Crew Worker I

Appendix

Title

$ 39,830 Public Relations Representative $ 40,825 Construction Crew Worker II Technical Services Worker II $ 42,892 Construction Worker III Industrial Waste Technician $ 43,965 Construction Operator I Dispatcher II Office Assistant II Technical Services Operator I $ 45,063 Environmental, Safety & Health Administrative Assistant $ 46,191 Construction Administrative Assistant Construction Operator II Right of Way Administrative Assistant Technical Services Operator II $ 47,346 Accounting Technician I Purchasing Agent I $ 48,528 Accounting Technician II Construction Operator III System Coordinator III Technical Services Operator III $ 49,741 Purchasing Agent II Special Services Operator $ 50,985 Executive Secretary/GM & Board $ 52,261 Engineering Support Technician Payroll/Benefits Manager Technical Services Data Manager $ 53,568 Fleet Mechanic III WWTP Operator

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Job Classification by Grade Order (effective July 1, 2011) (continued)

Annual Salary Range ‐ July 1, 2011

Grade

Minimum

Mid‐Point

Maximum

21 22 23 24 25 26 28 29 30 32

$ 37,840 $ 38,786 $ 39,759 $ 40,750 $ 41,769 $ 42,815 $ 44,982 $ 46,105 $ 47,258 $ 49,652

$ 46,392 $ 47,554 $ 48,743 $ 49,962 $ 51,211 $ 52,491 $ 55,149 $ 56,526 $ 57,941 $ 60,874

$ 54,908 First Responder Industrial Waste Chemist

Appendix

Title

$ 56,281 Construction Crew Leader Construction Inspector II Engineering Technician II HR Programs Manager IT Technician I Private Development Inspector $ 57,689 Budget Analyst I Engineering Office Manager $ 59,131 Construction Inspector III GIS Technician II Purchasing Supervisor $ 60,610 Construction & Repair Supervisor IT Technician II Preventative Maintenance Supervisor SSD Administrator Technical Services Supervisor $ 62,125 Engineering Technician IV $ 65,270 Engineering Associate Industrial Waste Coordinator Private Development Project Manager Right of Way Agent $ 66,901

Database Analyst Environmental, Health & Safety Manager Lead GIS Technician SCADA/PLC Technician

$ 68,576 Construction Manager Design/Drafting Manager $ 72,046 Private Development Coordinator/Taps & Allocations Private Development Coordinator/Plan Review

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Job Classification by Grade Order (effective July 1, 2011) (continued)

Annual Salary Range ‐ July 1, 2011

Grade

Minimum

Mid‐Point

Maximum

33 35 36 38 40 43 45 47 50 53

$ 50,892 $ 53,471 $ 54,806 $ 57,583 $ 60,498 $ 65,148 $ 68,449 $ 71,913 $ 77,440 $ 83,395

$ 62,394 $ 65,554 $ 67,193 $ 70,595 $ 74,168 $ 79,873 $ 83,917 $ 88,163 $ 94,940 $ 102,242 contract

$ 73,846 Right of Way Manager

Title

$ 77,585 Database Administrator/Developer $ 79,524 Accounting Manager Building Trades Manager Engineer II Field Operations Manager Fleet/Mechanical Maintenance Supervisor System Maintenance Coordinator Utility Maintenance Manager $ 83,551 IT Network Manager GIS Manager $ 87,779 Engineer III $ 94,530 WRF Superintendent $ 99,316 Director of Administrative Services $ 104,343 Director of Finance Director of Human Resources Director of System Services $ 112,365 Director of Water Reclamation Facility $ 121,006 Director of CIP Director of Planning & Development General Manager

Skill ‐Based 13 ‐ 24 $ 31,057 $ 41,673 $ 59,131 Building Trades 13 ‐ 24 $ 31,057 $ 41,673 $ 59,131 Mechanical Maintenance Foreman Maintenance Specialists 24 $ 40,750 $ 49,962 $ 59,131 Electrical Maintenance Technicians Electrical Maintenance Foreman

Appendix

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Staffing History (FTE’s)

Division & Position

Approved Positions 08‐09

Budgeted Positions 09‐10

Budgeted Positions 10‐11

1 1 1 1 1 1 1 7 1 1 1 1

Management Division Heads: Director of Administrative Services Director of Capital Improvements Program Director of Financial Services Director of Human Resources Director of Planning & Development Director of System Services Director of Water Reclamation Facility Total Division Heads General Manager: General Manager Total General Manager Office Support: Executive Secretary Total Office Support Department of Human Resources Public Relations Representative HR Assistant Payroll/Benefits Manager Total Human Resource Management Department of Administrative Services Environmental, Health & Safety: EHS Administrative Assistant Environmental, Health & Safety Manager Total Environmental, Health & Safety Information Systems (IT): IT Technician I IT Technician II IT Network Manager Total IT Appendix

1 1 1

3 1 1 2 1 1 1 3

3 1 1 2 1 1 1 3 Page 156

BUDGET DOCUMENT – FY2012

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Staffing History (FTE’s) (continued) Division & Position Management Information Systems (MIS): Database Analyst Database Administrator/Developer Total MIS Fleet Maintenance: Fleet Mechanic III Fleet/Mechanical Maintenance Supervisor Total Fleet Maintenance Department of Financial Services Finance & Budget: Administrative/Budget Assistant Budget Analyst Total Finance & Budget Accounting, Investments & Cash Flow Management: Accounting Technician I Accounting Technician II Accounting Manager Total Acct., Investments & Cash Flow Management Purchasing & Warehouse: Purchasing Agent I Purchasing Agent II Purchasing Supervisor Total Purchasing & Warehouse Department of Planning & Development Engineering Support Technician Systems Coordinator III Private Development Inspector Private Development Project Manager Private Development Coordinator/Taps & Allocations Private Development Coordinator/Plan Review Total Planning and Development

Appendix

Approved Positions 09‐10 1 1 2 3 1 4

Budgeted Positions 10‐11 1 1 2 3 1 4

1 0

1 1 1 1

1 1 1 3

1 2 1 1 1 1 7

Budgeted Positions 11‐12 1 1 2 3 1 4

0 1 1 1 1 1

3 1 1 1

3 1 2 1 1 1 1

1 1 1

1 2 1 1 1 1 7

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Staffing History (FTE’s) (continued) Approved Positions 09‐10

Division & Position Department of Capital Improvement Office Support: Office Manager Total Office Support Construction Administration: Administrative Assistant – Construction Construction Inspector II Construction Inspector III Construction Manager Total Construction Administration Design and Drafting: Engineering Technician II Engineering Technician IV Design and Drafting Manager Total Design and Drafting Engineers: Engineering Associate Engineer I Engineer III Total Engineers Geographic Information Systems(GIS): Technical Services Data Manager GIS Technician II Lead GIS Technician GIS Manager Total GIS Right of Way: Administrative Assistant – Right of Way Right of Way Agent Right of Way Manager Total Right of Way

Appendix

1 1

1 2 1 1 5

Budgeted Positions 10‐11 1

Budgeted Positions 11‐12

1 1 2 1 1

1 2 1 1

5 1 1 1

1 1 1 3

1 1 1

3 1 1 1

1 1 1 1 4

1 1 1

1 1 1 1 4 1 1 1

1 1 1 1 4

1 1 1 3

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Staffing History (FTE’s)(continued) Division & Position Department of Water Reclamation Facility Plant Operations: WWTP Operator Assistant Division Director for WRF Total Plant Operations Department of Water Reclamation Facility Mechanical Maintenance: Maintenance Mechanic Mechanical Maintenance Foreman Maintenance Specialist Total Mechanical Maintenance Electrical Maintenance/Hydro: SCADA/PLC Technician Electrical Maintenance Technician Electrical Maintenance Foreman Electrical Maintenance Manager Total Electrical Maintenance/Hydro Structural Maintenance: Building Trades Builder I Building Trades Manager Total Structural Maintenance Industrial Waste: Industrial Waste Technician Industrial Waste Inspector Industrial Waste Chemist Industrial Waste Coordinator Total Industrial Waste Department of System Services Office Support: Dispatcher Office Assistant II SSD Administrator Total Office Support

Appendix

Approved Positions 09‐10

Budgeted Positions 10‐11

Budgeted Positions 11‐12

12 1

12 1 13

6 1 1

6 1 1 8

1 5 1 1

1 5 1 1 8

4 1

1 1 1 1

1 2 1

1 2 1 4

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Staffing History (FTE’s)(continued) Division & Position Department of System Services (continued) System Services: Special Projects Crew Leader First Responder Special Services Operator Manhole Repair Crew Leader Construction Crew Worker I Construction Crew Worker II Construction Crew Worker III Construction Operator I Construction Operator II Construction Operator III Construction Crew Leader Construction & Repair Supervisor Technical Services Technician I Technical Services Technician II Technical Services Supervisor Assistant Division Director for SSD Preventative Maintenance Operator I Preventative Maintenance Operator II Preventative Maintenance Operator III ULOCO Technician Preventative Maintenance Worker II Preventative Maintenance Supervisor Total System Services Total:

Approved Positions 09‐10

Budgeted Positions 11‐12

1 4 1 1 4 3 2 4 3 2 3 2 3 2 1 1 5 2 2 1 3 1

Budgeted Positions 10‐11 1 4 1 1 3 5 2 3 4 2 3 2 3 2 1 1 5 2 2 1 3 1

52 150

1 4 1 1 3 5 2 3 4 2 3 2 3 2 1 1 5 2 2 1 3 1

150

Appendix

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Glossary

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

BUDGET DOCUMENT – FY2012

Glossary of Terms

Accrual Basis of Accounting Method of accounting where revenues are recognized as soon as they are earned and expenses as soon as the liability is incurred. Used most frequently with business‐type governmental funds. Adopted Budget The budget approved by MSD Board of Directors and enacted via a budget resolution, on or before June 15 of each year. AMSA American Metropolitan Sewerage Association—nationwide organization established to help improve operations Annual Budget The District's adopted budget for a fiscal year. Basis of Accounting The criteria governing the timing of the recognition of financial transactions and events. There are three major methods of accounting—cash, accrual, and modified accrual. Billing Fee Charge assessed by member agencies that collect sewer user fees from ratepayers to recover the administrative cost of collection. BOD—Biochemical Oxygen Demand The quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedures in five (5) days at 20°C (68°F) expressed in terms of weight and volume (mg/L). Budget Resolution The official statement by the District Board establishing the legal authority for the District Budget administrative staff to obligate and expend funds. Budget A plan of financial operation comprised of an estimate of proposed expenditures for a fiscal year and the proposed means of financing those expenditures (revenue estimates). Budget Calendar The schedule of key dates or milestones, which the District follows in the preparation and adoption of the budget. Budget Document The official written statement prepared by the District's Director of Finance, which presents the proposed budget to the District Board Glossary

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Glossary of Terms (continued)

Budget Transmittal A general discussion of the proposed budget presented to the Board by the General Manager and the Director of Finance as a part of the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the General Manager. Capital Expenditure An amount paid out that creates a benefit in more than one year, usually costs that are incurred in the acquisition or improvement of real or personal property. Capital expenditure includes both the cost of the asset itself as well as expenditures necessary to put it in place. Capital expenditure for equipment, for example, means the net invoice price of the equipment including the cost of any modifications, attachments and accessories or auxiliary apparatus necessary to make it usable for the purposes for which it is acquired. Ancillary charges such as taxes, duty, and protective in transit insurance, freight, and installation are also included in the total purchase price. Capital Improvement Program (CIP) Projects established to account for the cost of capital improvements. Typically, the District’s capital projects include a purchase of land and/or the construction or rehabilitation of infrastructure such as major interceptors and pump stations as well as major renovations and additions to the hydroelectric and wastewater treatment plant facilities. Capital Reserve Fund The Metropolitan Sewerage District of Buncombe County Capital Reserve Fund, a special fund created by the provisions the District’s Bond Order established to provide funding for unusual and extraordinary expenditures and debt service in the event of insufficient revenues. Cash Basis of Accounting Under cash basis, all transactions are recognized when cash is received or expended. This method is not acceptable for use by governmental entities. Coverage Ratio The excess of current revenues over current expenses divided by required debt service expressed as a ratio. This ratio is used to gauge the adequacy of utility rates to provide cash required for current operations and debt payments. Current Expenses The District's reasonable and necessary annual expenses of maintenance, repair, and operation of the Sewerage System. Debt Service Payment of interest and repayment of principal on bonded indebtedness.

Glossary

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Glossary of Terms (continued)

Department A management unit. District The Metropolitan Sewerage District of Buncombe County, North Carolina, a public body and body politic and corporate in the County of Buncombe, State of North Carolina exercising public and essential governmental functions to provide for the preservation and promotion of the public health and welfare. District Board The sewerage district board established under the provisions of the Enabling Act as the governing body of the District. Division A term used to describe a cost center with distinct objectives and activities within a Department. Domestic User Users whose sewer charges are based upon flow and meter size, predominately residences and small businesses. Enabling Act The North Carolina Metropolitan Sewerage Districts Act (Article 5, Chapter 162A, General Statutes of North Carolina, 1982 Replacement Volume, as amended) and, pursuant to the provisions thereof, The State and Local Government Revenue Bond Act (Article 5, Chapter 159, General Statutes of North Carolina, 1982 Replacement) Enterprise Funds A type of proprietary fund set up to account for the financing of services to the general public where all or most of the operating expenses involved are recovered in the form of user charges. EPA Environmental Protection Agency—federal governmental agency responsible for water and air quality. Expansion Expenditures to enlarge capacity of facilities or extend system to new areas. Expenditures The cost of goods received or services rendered whether payment for such goods and services has been made or not. FERC Federal Energy Regulatory Commission— an independent government agency, officially organized as part of the Department of Energy, and is responsible for regulating the interstate transmission of natural gas, oil, and electricity. Glossary

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Glossary of Terms (continued)

Fiscal Year An accounting period extending from July 1 through the following June 30. Flow Volume of domestic or industrial wastewater. Fund A fiscal entity with a self‐balancing set of accounts used to account for an activity(s) with common objectives. Fund Equity The excess of revenues over expenditures accumulated from prior years within a fund that are present in the form of cash at the beginning of the fiscal year. GAAP – Generally Accepted Accounting Principles These are standards for measuring and reporting financial data promulgated by an authoritative body. GIS Geographical Information System—use of computer technology to digitally map land and infrastructure. Goal The underlying reason(s) for the provision of essential District services. I/I (Inflow/Infiltration) Water entering the collection system from rain, water table, streams, and other non‐user sources, unnecessarily driving up cost of treatment and likelihood of SSOs. Improvements Betterments or upgrades to increase value, quality or usefulness. Industrial User Any user of the Sewerage System who discharges industrial waste (the liquid and waterborne pollutants resulting from processes or operations employed in industrial establishments). Charges based on flow, BOD and TSS. Infrastructure Rehabilitation System (IRS) A method of lining existing deteriorating sewer pipes in the ground to save the cost of having to dig them up and replace them. This procedure is performed by in‐house staff, at a lower cost than hiring contractors. Laterals Privately owned building sewer lines and smaller collection system lines (4‐6 inch in diameter) which connect to larger public main sewer lines.

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Glossary of Terms (continued)

Line‐item Budget A budget detailing categories of expenditure for goods and services that the District intends to purchase during the fiscal year. Local Government Budget & Fiscal Control Act The legal guidelines of the State of North Carolina, which govern budgetary and fiscal affairs of local governments, found in Chapter 159 of the North Carolina General Statutes. Local Government Commission (LGC) The nine‐member body established as a division of the Department of the State Treasurer to serve the citizens of North Carolina by issuing debt for units of local government and public authorities, monitoring the repayment of their debt, and overseeing the fiscal activities and financial soundness of all local governments and public authorities. Modified Accrual Basis of Accounting Under modified accrual, revenue is recognized when earned provided it is collected in time to pay liabilities of the current period. Similarly, liabilities are recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. Net Assets The difference of total assets and total liabilities for any period. Net Revenues The excess of revenues over current expenses for any period. NPDES National Pollutant Discharge Elimination System—permit to operate wastewater treatment issued by the EPA. Objective A measurable statement of the actual service(s), which the District expects to achieve. Order The Amended and Restated 1999 Bond Order. To request a copy, contact the Director of Finance at the address on the cover of this document. OSHA Occupational Safety and Health Administration—Federal agency responsible for issuing and monitoring standards to minimize workplace deaths, injuries and illnesses. PER Preliminary Engineering Report.

Glossary

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Glossary of Terms (continued)

PLC Programmable Logic Controller—instrumentation hardware used for automated control of equipment.

Preliminary Budget Budget that Board approves prior to adoption of final budget. Proprietary Fund A type of fund that accounts for governmental operations that are financed and operated in a manner similar to private business enterprises. It is financed primarily from charges to users of services provided. Recommended Budget The budget proposed by the General Manager and Director of Finance to District Board for adoption. Rehabilitation Expenditures for repair due to damage, wear, or decay to restore facilities to normal or optimum condition. Replacements Expenditures for components replacing existing units. Revenue (for purposes of Bond Order coverage) All payments, proceeds, fees, charges, and all other income derived by or for the account of the District from its ownership and operation of the Sewerage System, excluding all acreage, connection, front‐ footage, tap‐on, assessment and similar fees and charges and grants derived by the District in connection with the provision of or payment for capital improvements constituting a part of the Sewerage System and excluding the proceeds of any taxes levied by the District. Rotating Biological Contactor (RBC) Large rotating plates housing bacteria, which consume dissolved solids in wastewater. Satellite System Any sewer system maintained by another entity without a state‐issued discharge permit but which is connected to a MSD line for wastewater treatment and discharge by MSD. The State requires reporting for all satellite systems with a flow over 200,000 gallons per day. MSD has one reportable satellite system. SCADA Supervisory control and data acquisition—a computer system for gathering and analyzing real time data. SCADA systems are used to monitor and control a plant or equipment in industries such as telecommunications, water and waste control, energy, oil and gas refining and transportation. SS (Suspended Solids) Solid matter that either floats on the surface of or is suspended in wastewater and which is removable by laboratory filtration. Glossary

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Glossary of Terms (continued)

SSO (Sanitary System Overflow) Untreated wastewater escapes from the collection system. Treatment System Wastewater Treatment Plant of the District. User Charge Rates and fees adopted to assure that each recipient of Wastewater Treatment Services will pay its proportionate share of the costs of operation and maintenance, including replacement. Water Reclamation Facility Wastewater Treatment Plant of the District. WNCRAQA Western North Carolina Regional Air Quality Agency—a self‐supporting, local air quality regulatory agency formed by an interlocal agreement between Buncombe County and the City of Asheville.

Glossary

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