FY 2013

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

BUDGET DOCUMENT Fiscal Year 2013

FY 2012-2013 Budget Document for

Metropolitan Sewerage District of Buncombe County, North Carolina Asheville, North Carolina

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

Thomas E. Hartye, P.E., General Manager W. Scott Powell, CLGFO, Director of Finance

Website: www.msdbc.org

Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Metropolitan Sewerage District of Buncombe County, North Carolina for its annual budget for the fiscal year beginning July 1, 2011. This is the fifteenth consecutive year that the MSD has received this award.

In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device.

This award is valid for a period of one year only. We believe our FY13 budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

Principal Officials Board Member

Representative of

Steven T. Aceto, Chairman

Town of Montreat

Jackie W. Bryson, Secretary/Treasurer

Woodfin Sanitary Water & Sewer

Jon E. Creighton

County of Buncombe

Max L. Haner

County of Buncombe

E. Glenn Kelly

Town of Biltmore Forest

Esther Manheimer

City of Asheville

Chris Pelly

City of Asheville

Al P. Root

Town of Weaverville

Bill Russell

City of Asheville

Bill Stanley

County of Buncombe

M. Jerry VeHaun

Town of Woodfin

Robert C. Watts

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, CLGFO

Table of Contents Section Title

Subdocuments

Page No.

Introduction

Budget Message

1

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 12 13 14 18 20 21 22 25 26 27 29

Operation & Maintenance

Operation & Maintenance Fund

Insurance Funds

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

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 Construction Division System Services Maintenance Division Planning & Development Department Capital Improvement Department

33 36 42 46 53 61 68 73 77 81 85

89 90 91 91 92

Table of Contents (continued) Section Title 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

Subdocuments

Page No.

93 94 95 95

97 101 117 118

125 129

131 132 133 134 135 136 137

139 140 143 146

151

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Introduction

June 1 13, 2012

Members off the Board Metropolitan Sewerage D District of Bun ncombe Coun nty, North Ca rolina W. H. Mull B Building 2028 Riversiide Drive Asheville, No orth Carolina 28804

Subject: FY12‐13 Budggets and Prop posed Sewer Rates

Dear Members of the Board,

We resp pectfully pressent the FY13 3 Budget for the Metropoolitan Seweraage District o of Buncombe County, North Caroliina. The budgget incorporates staff reco ommendationns presented to and accep pted by the Peersonnel Committee, which met o on May 2, 201 12, the Capitaal Improvemeent Program Committee, w which met on n May 3, he Finance Co ommittee, wh hich met on M May 9, 2012.

2012, and th

We havve developed the FY13 Budget to advvance the orrganization’s mission “to provide wasstewater collection an nd treatmentt to its users which promo otes the hea lth and safety of affected d citizens in the most effective an nd efficient manner m possible today and in the fuuture”. The ffollowing opeerational and d capital budget is de esigned to provide service es meeting orr exceeding a ll state regulaations and Bo ond Order co ovenants with which tthe District m must comply, w with any rate changes to bbe at the loweest responsib ble level.

Current Year Y Highlights In FY12,, the District’s domestic and industrial revenue is eexpected to m meet budgeteed projections. While some light and medium m commerciall consumers are still feelling the effeccts of the reecession, the District continues to o achieve grow wth in the nu umber of resid dential custom mers.

The Disttrict has had d to contend with increassed healthca re cost as w well as increased fuel costt. These increased co osts have been offset by a decrease in interest exxpenditures and debt administrative cost. By limiting the increase of o other operatin ng expenditures and by sttrategically planning the timing of CIP p projects, the District h has been able e to limit the proposed ratte increase too 2.5% for thee upcoming year. Addition nally, the District’s lon ng‐range bussiness plan in ncorporates these changees and projeccts that futurre rate increaases will approximate e 2.5% for the e remaining n nine years.

This bud dget continues several re ecent initiativves to mainttain the District’s overall strategy of keeping ng significan collection liines and the e plant funcctioning effecctively whilee rehabilitatin nt portions o of aging infrastructure. The mostt important goal g remains meeting all regulatory peermit requireements includ ding the reduction off sanitary sew wer overflowss (SSOs).

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IIntroduction | Page 1

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO:

Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

The Systems Services Department continues to expand its participation in sewer line rehabilitation and replacement efforts to minimize SSOs. Goals for FY 2012‐13 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 FY13, the District will finish the large project to replace the existing secondary microscreens started in FY11 as well as rehabilitation of the plant’s aged power supply system and hydro facility.

Operating Budget The proposed $14.7 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 2.0% cost of living increase and a 2.0% merit raise increase: CPI increased 3.9% for the last twelve‐month period; Division Directors in conjunction with Employee Advisory Committee have requested cost of living as well as a merit rate increase to keep pace with industry salary increases as well as to encourage retention of valued employees. The Personnel Committee has recommended a 2.0% cost of living increase and a 2.0% merit raise increase. This has a $43,426 net impact on current year expenditures.

 A 1.0% increase in funding for self‐insured medical plan: During FY12, staff worked with the Employee Advisory Committee and initiated a top to bottom review of our existing broker and medical insurance providers. The effort has resulted in substantial savings in brokerage fees, drug cost, reinsurance savings and the opportunity to further reduce medical insurance service costs to employees. The two groups continue to work on a long‐term strategic plan to address controllable medical issues. The 1% increase in employer contribution is estimated to be sufficient to cover expenses of the plan while maintaining prudent reserves for claims. This has a $17,181 net impact on current year expenditures.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO:

Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

 A 2.9% decrease 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. In the current year, LGERS had a better than anticipated return on plan assets. This reduced FY13 contribution from 6.96% to 6.74%. Over the next eight years, contribution rates are still projected to increase to an amount slightly over 9%. This has a $16,045 impact on current year expenditures.

 Funding for Post‐Employment Health Benefit: Starting in FY09, 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 $222,900. Current funding has been implemented into the proposed FY13 budget and the current business plan and represents 1.5% of total operations.

 Materials, Supplies, and Service expenditures increased 0.6% 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 line item 9.1% based on current economic trends. Discretionary expenditures have been limited where practicable. This has a $37,929 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 FY13 is $18.4 million, which is comprised of an estimated $17.2 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 3, 2012 CIP meeting.

The Board has consistently financed its capital improvement program through revenue bonds and pay‐ as‐you‐go moneys. As of June 30, 2012, the District will have $96.2 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 $19.9 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.

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 $149.1 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

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO: Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

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 FY13 include the $818,600 Givens Estates with over 3,702 linear feet, $637,100 Merrimon Avenue at Stratford with over 2,527 linear feet, $1,180,000 Short Coxe at Southside with over 3,625 linear feet, $902,000 PRP Lining Contract #7 with over 10,000 linear feet, and the completion of the Secondary Microscreen project at a cost $2.6 million. In FY13, 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.

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 FY07, 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 www.msdbc.org

Introduction | Page 4

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO: Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

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 FY11 with completion in FY13. 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.

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 40 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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO:

Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

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 2.5% increase in domestic sewer rates and meter fees for FY13, 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 expenditures is at least 120% of debt service. Additionally, the board balances the bond order requirements while maintaining all regulatory and fiduciary responsibilities.

Domestic sewer rates for the past five years as well as FY13 are shown below:

Rate Increase % Meter, Maintenance & Billing Fees Flow Rate (per ccf) Avg. Monthly Bill (5ccf)

FY08

FY09

FY10

FY11

FY12

FY13

4.0% $6.23 $3.41 $23.27

3.0% $6.43 $3.51 $23.99

3.75% $6.64 $3.64 $24.84

3.5% $6.87 $3.77 $25.72

3.0% $7.05 $3.88 $26.45

2.5% $8.34 $3.98 $27.14

Distinguished Budget Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Metropolitan Sewerage District of Buncombe County, North Carolina for its annual budget for the fiscal year beginning July 1, 2011. This is the fifteenth consecutive year that the MSD has received this award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device.

www.msdbc.org

Introduction | Page 6

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

TO:

Members of the Board SUBJECT: FY12‐13 Budgets and Proposed Sewer Rates June 13, 2012

This award is valid for a period of one year only. We believe our FY13 budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

In Closing The Budget represents the combined efforts and guidance of the Board, its Committees and staff. A special thanks to Teresa Gilbert for assembling the budget documents, Ed Bradford, CIP Director, and Sharon Walk for assembling the CIP Section of the Budget, and to Peter Weed for updating the sewer rate projections. We look forward to working with you, staff, and our ratepayers as we implement this financial plan and policy document.

Respectfully submitted,

Thomas E. Hartye, PE W. Scott Powell, CLGFO General Manager Director of Finance

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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Policies & Budget Process

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

 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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Plan (continued) 

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 977 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.

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. Protection of health, safety, and the environment 2. Excellence in customer service 3. Cost‐effectiveness 4. Continuous improvement

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Plan (continued) 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. Maintain Collection System Permit. (Goal #1) 2. Maintain Discharge Permit to French Broad River for Water Reclamation Facility. (Goal #1) 3. Maintain a qualified and motivated workforce. (Goals #1‐4) 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.

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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2.5% for the next ten 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 FY13 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.

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Policies & Budget Process | Page 12

3.75%

3.5%

3.0%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Sewer Rate Increase

$23.99

$24.84

$25.72

$26.45

$27.14

$27.82

$28.51

$29.23

$29.96

$30.71

$31.47

$32.26

$33.07

$33.89

Average Monthly Bill

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Assumptions

29,669,151

25,496,310

42,331,200

34,698,658

24,113,573

13,036,001

17,895,831

12,469,969

8,178,379

3,531,692

23,765,730

19,134,576

13,933,617

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

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

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%

REVENUE: 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 State and Federal (EPA) Grants Revenue Bonds/Stimulus

6.1% 24,686,228 1,565,402 643,264 211,165 2,027,006 383,248 37,000 20,507 0 963,786 30,537,606

2.7% 25,331,880 1,633,058 657,810 176,300 1,801,000 424,815 37,000 67,872 0 121,575 30,251,310

3.3% 26,171,162 1,696,137 677,544 105,000 1,250,000 185,748 37,000 67,872 0 50,000 30,240,463

3.5%

3.5%

27,024,441 1,825,427 697,870 105,000 1,250,000 120,716 37,000 68,597 0 50,000 31,179,051

19,072,980

Total Funds Available

3,059,478

27,891,970 1,964,440 718,806 105,000 1,250,000 209,555 37,000 68,742 0 50,000 32,295,513

3.5% 28,774,013 2,113,860 740,371 105,000 1,250,000 303,665 37,000 69,950 0 500,000 33,893,859

3.6%

3.3%

29,726,299 2,273,940 762,582 105,000 1,375,000 206,498 37,000 71,399 0 50,000 34,607,719

30,694,472 2,365,335 785,459 105,000 1,375,000 117,128 37,000 71,641 0 50,000 35,601,035

24,000,000

3.3% 31,678,819 2,461,595 809,023 105,000 1,375,000 409,539 37,000 71,641 0 50,000 36,997,617

3.4% 32,736,361 2,558,522 833,294 105,000 1,375,000 643,641 37,000 71,641 0 50,000 38,410,459

3.2% 33,811,528 2,622,486 858,292 105,000 1,375,000 496,237 37,000 71,641 0 50,000 39,427,184

3.2% 34,904,642 2,688,048 884,041 105,000 1,500,000 325,050 37,000 71,641 0 50,000 40,565,422

58,352,814

72,115,147

72,868,806

64,949,968

54,354,036

44,215,052

59,354,991

51,789,690

47,077,688

43,779,414

64,529,308

62,176,189

58,561,760

54,499,039

12,408,349 400,000

12,454,727 300,000

13,272,468 250,000

14,010,298 350,000

14,215,534 500,000

14,817,532 500,000

15,428,975 550,000

16,129,980 600,000

16,785,295 600,000

17,462,774 600,000

18,166,315 625,000

18,900,155 625,000

19,467,160 625,000

20,051,174 625,000

Debt Service 7,600,364 7,855,989 8,565,201 7,614,101 8,238,321 8,760,297 9,354,054 8,832,124 8,219,140 8,216,542 8,759,497 9,877,613 10,495,459 10,486,450 CIP (including Bond Projects) 12,447,791 9,173,231 16,082,479 18,861,996 18,364,180 17,077,746 16,126,131 13,757,617 13,294,874 13,968,407 13,212,766 13,638,844 14,040,524 15,620,783 Total Expenses 32,856,504 29,783,947 38,170,148 40,836,395 41,318,035 41,155,575 41,459,160 39,319,721 38,899,309 40,247,722 40,763,578 43,041,612 44,628,143 46,783,407 June 30 - Carry Over for Construction 25,496,310 42,331,200 34,698,658 24,113,573 13,036,001 3,059,478 17,895,831 12,469,969 8,178,379 3,531,692 23,765,730 19,134,576 13,933,617 7,715,632 Pay-as-you-go (Current Revenue only)

8,900,674

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

7,235,141

1.6 2.1

8,699,937

1.7 1.9

8,626,911

1.6 2.0

7,786,608

1.8 2.1

1.8 1.9

7,601,223

1.7 1.9

7,512,484

8,931,755

1.6 1.8

9,603,284

1.8 2.0

April 23, 2012

9,921,719

2.0 2.2

10,071,805

2.0 2.2

9,632,690

1.9 2.1

9,464,565

1.8 2.0

10,027,797

1.7 1.9

1.8 2.0

FY 2010 1,391,413 3,433,233 728,835 12,171 993,867 2,547,454 66,258

FY 2011 3,496,305 5,109,985 806,840 134,473 3,496,305 2,635,451 403,120

9,173,231

16,082,479

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 1,990,684 281,168 1,624,455 2,472,866 274,600 0 3,026,684 1,638,762 1,499,878 0 2,949,341 4,736,837 7,559,101 9,599,545 6,951,359 7,972,094 7,954,561 5,972,377 6,520,328 6,967,301 8,720,280 7,381,637 1,210,978 1,847,150 1,603,400 0 2,064,624 1,292,115 1,318,940 1,367,082 1,416,980 1,468,700 1,522,307 258,740 25,000 116,917 116,028 78,839 481,874 113,650 117,798 122,098 126,555 131,174 7,928,957 4,764,100 1,182,439 3,574,303 222,709 360,107 227,300 234,357 231,344 254,441 93,893 2,723,000 2,687,661 2,750,990 2,811,575 2,944,750 3,006,217 3,109,456 3,134,439 3,201,243 3,270,548 3,342,430 12,800 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 0 1,000,000 18,861,996 18,364,180 17,077,746 16,126,131 13,757,617 13,294,874 13,968,407 13,212,766 13,638,844 14,040,524 15,620,783

TOTAL CONSTRUCTION COSTS

ENR 10-year Construction Index @ 3.65% General Sewer Rehab to cover 50,000 lineal ft / year

No growth in Industries Rate Parity for Flow in 2020

CASH BALANCE & REVENUE

$25,000,000

$50,000,000

$20,000,000

$40,000,000

$15,000,000

$30,000,000

Pay-as-you-go

Revenue w/o Bonds

Bond Money Used

$10,000,000

$20,000,000

$5,000,000

Bond Issues

$10,000,000

Pay-as-you-go

$0

$0 09

10

11

12

13

14

15

16

17

18

19

20

21

22

Cash Balance

09

10

11

12

13

14

15

16

17

18

19

20

21

22

2012‐2013 BUDGET DOCUMENT

Interceptor/Wet Weather Rehabilitation General Sewer Rehabilitation Pipe Rated Projects Private Sewer Rehabilitation Treatment Plant / Pump Stations Engineering Force Account Reimbursements Contingency Capital Improvement Program Totals 12,447,791

Policies & Budget Process | Page 13

FY 2009 3,257,084 4,885,626 610,703 101,784 1,119,623 2,269,403 203,568

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

Target Debt Coverage 1.5

10-Year Capital Improvement Program

Active Plan CIP

0.75% Increase in FY12 0.75% Increase thereafter

Bond Issues figured at: 5.0% yield FY15 5.5% yield FY19

24,000,000

EXPENSES: Operations & Maintenance Replacement Funds (WRF & Fleet)

Consumption and Account Growth

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

July 1- Available for Construction

3.0%

Budgetary Forecast Based on Current Business Plan

www.msdbc.org

Business Plan FY13 Budget

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

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. www.msdbc.org

Policies & Budget Process | Page 14

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Fiscal Policy (continued) 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.

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.

www.msdbc.org

Policies & Budget Process | Page 15

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Fiscal Policy (continued) 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.

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. www.msdbc.org

Policies & Budget Process | Page 16

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Fiscal Policy (continued) 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.

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.

www.msdbc.org

Policies & Budget Process | Page 17

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 Treatment Plant Replacement Funds.

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.

www.msdbc.org

Policies & Budget Process | Page 18

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Budget Process (continued) 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.

www.msdbc.org

Policies & Budget Process | Page 19

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Budget Calendar

APR S 01 08 15 22 29

M 02 09 16 23 30

2012 T 03 10 17 24

W 04 11 18 25

T 05 12 19 26

F 06 13 20 27

S 07 14 21 28

DATE April 26

TIME 9:00 a.m.

SUBJECT Personnel Committee Meeting  Cost of Living & Merit Pay  Benefit Allocations

DATE May 3

TIME 8:30 a.m.

SUBJECT CIP Committee Meeting  Update of Ten‐Year Capital Improvement Program  Update Construction Program Financing  2012‐2013 Construction Fund Budget

May 9

1:00 p.m.

Finance Committee Meeting  Nine‐Month Revenue/Expenditure Report  Self‐Funded Medical & Dental Program  Proposed FY13 Construction Fund Budget  Proposed FY13 Operating Budget & Sewer Rates

May 16

2:00 p.m.

DATE June 13

TIME 2:00 p.m.

Board Meeting  Preliminary FY13 Budgets & Sewer Rates SUBJECT Board Meeting  Public Hearing  Adoption of FY13 Budgets & Sewer Rates

MAY S

M

06 13 20 27

07 14 21 28

2012 T 01 08 15 22 29

W 02 09 16 23 30

T 03 10 17 24 31

F 04 11 18 25

S 05 12 19 26

JUN

2012

S

M

T

W

T

03 10 17 24

04 11 18 25

05 12 19 26

06 13 20 27

07 14 21 28

F 01 08 15 22 29

JUL S 01 08 15 22 29

M 02 09 16 23 30

S 02 09 16 23 30

2012 T 03 10 17 24 31

www.msdbc.org

W 04 11 18 25

T 05 12 19 26

F 06 13 20 27

DATE July 1

TIME

SUBJECT Start of Fiscal Year 2012‐2013

S 07 14 21 28

Policies & Budget Process | Page 20

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

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. www.msdbc.org

Policies & Budget Process | Page 21

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 FY13 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 is on the following page.

www.msdbc.org

Policies & Budget Process | Page 22

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Fund Structure (continued)  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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

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

Flow of Funding

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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

Fleet

Construction Fund

Income Sources Trustee Funds Expenditures

Flow of Funding if required for emergency repairs or maintenance

Policies & Budget Process | Page 25

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011 Actual Total

FY 2012 Budget

FY 2013 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 Use of (Contributions to) Available Funds

$ 24,686,228 1,565,402 643,264 2,238,171 690,775 20,507 37,085 357,356 8,040,375

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

$ 26,171,162 1,696,137 677,544 1,355,000 325,659 67,872 37,000 413,000 11,201,767

$ 1,140,762 93,477 19,734 ‐ (275,405) ‐ ‐ (47,079) (2,244,851)

4.6% 5.8% 3.0% 0.0% ‐45.8% 0.0% 0.0% ‐10.2% ‐16.7%

Total Revenues & Financing Sources

$ 38,279,163

$ 43,258,503

$ 41,945,141 $ (1,313,362)

‐3.0%

Operations and Maintenance Construction Capital Equipment Bond Principal and Interest

$ 13,522,468 16,082,779 457,576 8,216,340

$ 14,330,969 19,687,776 867,900 8,371,858

$ 14,555,790 $ 224,821 18,364,180 (1,323,596) 786,850 (81,050) 8,238,321 (133,537)

1.6% ‐6.7% ‐9.3% ‐1.6%

Total Expenditures

$ 38,279,163

$ 43,258,503

$ 41,945,141 $ (1,313,362)

‐3.0%

% Change

REVENUES & FINANCING SOURCES

EXPENDITURES

NOTE: Both Operation & 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.

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Policies & Budget Process | Page 26

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 Revenue/O&M

General

Construction

Equipment Replacement Debt Services Appropriated Funds Fleet Repl.

WWTP

Bond

Reserve

Reserve

Service

Projected Net Assets at 6/30/12

22,742,386

1,370,969

218

397,518 617,477 5,311,905

30,440,473

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

26,171,162 1,696,137 677,544 ‐ ‐ ‐ 209,748 37,000 67,872 ‐ 28,859,463

‐ ‐ ‐ 1,355,000 ‐ ‐ 25,000 ‐ ‐ ‐ 1,380,000

‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ ‐ ‐ 1,000

‐ ‐ ‐ ‐ 46,680 ‐ 2,981 ‐ ‐ ‐ 49,661

26,171,162 1,696,137 677,544 1,355,000 46,680 ‐ 242,979 37,000 67,872 ‐ 30,294,374

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

(11,303,922) ‐ ‐ ‐ (132,850) (11,436,772)

‐ ‐ ‐ ‐ ‐ ‐

Interfund/account transfers

(27,142,083) (2,739,180) 18,364,180 400,000 100,000 8,238,321 (2,778,762)

Excess (Deficit) of Revenues over Expenditures

(9,719,392) (1,359,180) 1,000 (4,339) (96,000) 250 (11,177,661)

Projected Net Assets at 06/30/13

13,022,994 11,789 1,218 393,179 521,477 5,312,155 19,262,812

‐ ‐ ‐ ‐ ‐ ‐ 4,000 ‐ ‐ ‐ 4,000

‐ ‐ ‐ ‐ ‐ ‐ 250 ‐ ‐ ‐ 250 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (5,216,825) ‐ ‐ ‐ (3,021,496) (18,364,180) ‐ ‐ ‐ ‐ (454,000) (200,000) ‐ (18,364,180) (454,000) (200,000) (8,238,321)

(11,303,922) (5,216,825) (3,021,496) (18,364,180) (786,850) (38,693,273)

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.

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Policies & Budget Process | Page 27

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

Held by Bond Trustee

Non‐ Appropriated

Budget Summary

Insurance

Insurance

Insurance

Insurance

Debt

Capital

District

Medical

Post Employment

Prop & Liab

Work Comp

Reserve

Reserve

Totals

Projected Net Assets at 6/30/12

895,312

46,174 407,141 302,644 2,319,877

914,822 4,885,970 35,326,443

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

‐ ‐ ‐ ‐ ‐ ‐ 4,000 ‐ ‐ 413,000 417,000

‐ ‐ ‐ ‐ ‐ ‐ 4,000 ‐ ‐ ‐ 4,000

‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ ‐ ‐ 1,000

‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ ‐ ‐ 1,000

‐ ‐ ‐ ‐ ‐ ‐ 16,000 ‐ ‐ ‐ 16,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,000 36,000 ‐ ‐ ‐ ‐ ‐ 413,000 10,000 449,000

26,171,162 1,696,137 677,544 1,355,000 46,680 ‐ 278,979 37,000 67,872 413,000 30,743,374

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

(2,251,718) ‐ ‐ ‐ ‐ (2,251,718)

(222,900) ‐ ‐ ‐ ‐ (222,900)

(591,750) ‐ ‐ ‐ ‐ (591,750)

(185,500) ‐ ‐ ‐ ‐ (185,500)

‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐

(3,251,868) ‐ ‐ ‐ ‐ (3,251,868)

(14,555,790) (5,216,825) (3,021,496) (18,364,180) (786,850) (41,945,141)

Interfund/account transfers

1,735,116 222,900 605,434 215,312 ‐

‐

2,778,762 ‐

Excess (Deficit) of Revenues over Expenditures

(99,602) 4,000 14,684 30,812 16,000 10,000 (24,106) (11,201,767)

Projected Net Assets at 06/30/13

795,710 50,174 421,825 333,456 2,335,877 924,822 4,861,864 24,124,676

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

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Policies & Budget Process | Page 28

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Reven nue Overview The District has the autho ority to estab blish rates and d charges for r service to bee approved byy a budget reesolution of the Distrrict Board of Directors. The District has establisheed separate rrates for dom mestic and in ndustrial customers, adopted a schedule s of facility f and tap t fees app lying to new w customers, and receivees minor amounts off income from rental of real propertty and investtment of surrplus cash. TThe various ttypes of revenues an nd other finan ncing sources are described in greater ddetail on the ffollowing pagge.

A graph of h historical reve enues by type e reveals the e overwhelmi ng percentagge of the Disttrict’s incomee derives from domesstic (residentiial & commercial) customers and has increased forr the past nin ne consecutivve years.

Industrial usser fees clearly show the e effect of th he shrinking ttextile industtry in Buncom mbe County and are diminishing as larger ind dustries wind down and are replaced w with smaller new enterprrises. Facility and tap fees testify tto the growth h fueled by population in‐migration an d expansion of non‐industrial type bussinesses.

The decline of investment income FYY 11 will conttinue in FY122. Overall, inccome for FY1 12 is estimateed to be slightly higher than in FY1 11.

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Po olicies & Budg get Process | Page 29

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Reven nue (continuued) Revenuee Summa ary

When projecting FY13 re evenues, a 2.5 5% domestic customer ratte increase w was considered d in conjuncttion with a projected .75% increase domestic consumption n. In additionn, the budgett reflects no growth in in ndustrial users. Conse ervative assum mptions base ed on recent iincome trendds underlie otther budgeted d income amounts as explained be elow.

Domestiic User Ch harges The primaryy source of District reve enues are do omestic charrges. The Diistrict has ap pproximatelyy 50,000 accounts. Th he District dirrect bills approximately 35 50 of these ddomestic userrs all of which are on privvate well systems butt are connecte ed to MSD’s ssewer collector system. Bi lling and colleection of the remainder off District domestic cu ustomers is pe erformed by tthe member agencies provviding water,, who charge a fee for thiss service, which is add ded to the mo onthly bill and d paid by MSD D customers.

Domestic se ewer rate incrreases for the e past five yeaars are shownn below:

2008‐09 2 2009‐2010 0 2010‐22011 20011‐2012 2012‐201 13 2007‐08

4.0% 3.0% 3.75% 3.5% % 3.0% 2.5% %

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Po olicies & Budg get Process | Page 30

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 FY13 estimated industrial revenue is expected to increase marginally compared to FY12.

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 1.0%.

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 FY12, the District has completed the aforementioned plan. Effective in FY13, 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 2012. The cost for installing a tap is $650, with additional charges up to $2,200 if pavement disturbance involved.

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Policies & Budget Process | Page 31

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Revenue (continued) Billings & Collections The District will pay the municipalities $2.21 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.

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Policies & Budget Process | Page 32

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Operation & Maintenance

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Operation & Maintenance Fund Organizational Chart Ratepayers of the Metropolitan Sewerage District

MSD Board

Committees Construction CIP Finance Personnel Planning Right of Way

Legal Counsel Roberts & Stevens

Auditing Firm Cherry Bekaert & Holland

Engineer of Record McGill Associates

Executive Secretary Sondra Honeycutt General Manager Thomas E. Hartye, P.E. (# of employees: 10) Budget: $1,492,758

Director of Human Resources James Hemphill

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

Financial Services

Human Resources

Planning & Development

Finance & Budget Accounting & Investments Purchasing Warehouse

Employee Relations Payroll & Benefits Environmental Health & Safety

(# of employees: 10) Budget: $765,005

(# of employees: 6) Budget:$706,518

Director of CIP Ed Bradford, P.E.

Director of Financial Services W. Scott Powell, CLGFO

Administrative Services

CIP

Fleet Maintenance Facilities Maintenance WRF Maintenance Financial Forecasting

Project Management Design & Drafting Right of Way Construction GIS

(# of employees: 27) Budget: $2,491,386

(# of employees: 20) Budget: $2,395,922

Director of Administrative Services Peter Weed

Director of SS Construction Mike Stamey, P.E.

Director of SS Maintenance Ken Stines

Director of Water Reclamation VACANT

SS Construction

SS Maintenance

Wastewater Treatment Services

Construction Allocations Taps Sewer System Expansion

(# of employees: 6) Budget: $575,944

(# of employees: 27) Budget: $2,268,343

Preventative Maintenance Technical Services

(# of employees: 26) Budget: $2,686,904

Operations Industrial Waste

(# of employees: 17) Budget: $5,336,615

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Operation & Maintenance | Page 33

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 FY13 Operation & Maintenance Fund budget totals $14,715,534. This represents a 2.47% increase over the previous year. The District budgets to the Departmental level and are as follows:

Office of the General Manager $ 1,492,758 Human Resources $ 706,518 Administrative Services $ 2,491,386 Financial Services $ 765,005 Wastewater Treatment Plant $ 5,336,615 SS Construction $ 2,268,243 SS Maintenance $ 2,686,904 Planning & Development $ 575,944 Capital Improvement $ 2,395,922

Total Expenditures $18,719,295 Less: Capitalized in Construction Funds ( 4,003,761) Net Operation & Maintenance Fund $14,715,534

ACTUAL

APPROVED

ESTIMATED

2010‐2011

2011‐2012

2011‐2012

BUDGET

ACTUAL

PROPOSED 2012‐2013 BUDGET

INC(DEC) OVER PRIOR YR BUDGET

SALARIES & WAGES

$ 7,538,080 $ 7,920,313 $ 7,897,655

BENEFITS

$ 3,234,898 3,456,452 3,442,885

POST‐EMPLOYMENT HEALTH BENEFIT

$ 182,000 211,500 211,500

MATERIALS, SUPPLIES & SERVICES

$ 5,328,433 5,971,331 5,570,832

REPLACEMENT FUNDS & TRANSFERS

$ 683,432 762,923 762,923

CAPITAL EQUIPMENT

$ 226,632 95,573 89,189

SUB‐TOTAL O&M FUND LESS:

$ 17,193,476 $ 18,418,092 $ 17,974,984

Capitalized Construction Expenses NET OPERATION & MAINTENANCE FUND

$ 7,947,441 3,476,557 222,900 6,009,260 930,287 132,850 $ 18,719,295

$ (3,845,162) $ (4,057,794) $ (4,046,404) $ (4,003,761) $ 13,348,314 $ 14,360,298 $ 13,928,580

$ 14,715,534

0.34% 0.58% 5.39% 0.64% 21.94% 39.00% 1.64% ‐1.33% 2.47%

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

1. Repairs and Maintenance: A majority of the District’s 977 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.

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Operation & Maintenance | Page 34

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Operaation & Mainttenance Fund d (continued) 2. Sala aries and Ben nefits: A 2.0% % cost of livin ng adjustmennt and a 2.0% % merit raise increase as w well as a

1.0% % increase for the self‐funded health in nsurance plann. In FY13, thee Local Governmental Employees’ Retirement Syste em decreased d the required funding froom 6.96% to 6.88%. Perso onnel costs reepresent over 60% of the o operating and d maintenancce budget.

3. Postt‐Employmen nt Health Ben nefit: Startingg in FY09, GASSB45 requiress the recognittion of cost fo or Post‐ Emp ployment Heaalth Benefits. Current fund ding represennts 1.5% of tottal operations.

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Op peration & Maintenance | Page 35

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – All Departments Summary

SALARIES & WAGES 51100 Salaries & Wages 51150 Overtime TOTAL SALARIES & WAGES BENEFITS 51200 NC Retirement 51250 Payroll Taxes 51300 Group Medical, Dental & Life 51350 Worker's Compens ation 51360 State Unemployment Benefi ts 51450 Automobi le Allowance 51500 401(k) SUB‐TOTAL BENEFITS 51325 Post Retirement Insurance TOTAL SALARIES, WAGES & BENEFITS MATERIALS, SUPPLIES & SERVICES 52010 Advertising 52050 Dues & Subscriptions 52100 Postage 52150 Training & Ass ociated Expenses 52160 Tuition As sistance 52170 Director's Fees & Expenses 52180 Insurance 52200 Telephone & Telefax 52210 Communications (other than tel ephone) 52240 Uniforms 52250 Office Supplies 52260 Special Departmental Supplies 52270 Safety Equipment/Supplies 52280 Supplies/Small Tools 52290 Chemical s 52300 Line Cleaning & Supplies 52330 Legal Fees 52350 Professional/Contractual Services 52400 Repairs ‐ Office Equipment 52410 Maintenance ‐ Bldgs. & Ground 52420 Maintenance Equipment 52430 Landscape Res toration 52440 Pump Maintenance 52450 Equipment Rental 52460 Motor Fuel & Lubri cants 52470 Outs ide Vehicle Maintenance 52500 Rents & Leases 52510 Permits/Fees/Software Licenses 52650 Utilities 52690 Freight 52715 Safety Incentive Program 52720 Health Fair 52725 Well ness Program 52730 Employee Assi stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equipment 52915 Copiers, Printers & Faxes 52920 Billing & Collections 52990 Contingency TOTAL MATERIALS, SUPPLIES & SERVICES INTERFUND TRANSFERS 52340 Debt Administration Expenses 53040 Fleet Equi pment Replacement Fund 53050 WWTP Replacement Fund TOTAL INTERFUND TRANSFERS

ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

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

$ 7,292,462.77 $ 245,616.93 $ 7,538,079.70

$ 7,652,363 $ 267,950 $ 7,920,313

$ 7,635,855 $ 261,800 $ 7,897,655

$ 7,679,581 $ 267,860 $ 7,947,441

0.36% ‐0.03% 0.34%

$ 7,336,254

$ 7,538,079.70

$ 7,920,313

$ 7,897,655

$ 7,947,441

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

$ 501,064.51 $ 549,447.06 $ 1,687,079.00 $ 181,738.00 $ ‐ $ 6,553.68 $ 309,016.20 $ 3,234,898.45

$ 551,705 $ 604,660 $ 1,717,936 $ 195,738 $ ‐ $ 10,100 $ 376,313 $ 3,456,452

$ 551,046 $ 603,939 $ 1,717,936 $ 195,738 $ ‐ $ 2,500 $ 371,726 $ 3,442,885

$ 535,660 $ 607,980 $ 1,735,116 $ 215,312 $ ‐ $ ‐ $ 382,489 $ 3,476,557

$ 2,900,147

$ 3,234,898.45

$ 3,456,452

$ 3,442,885

$ 3,476,557

$ 222,000

$ 182,000.00

$ 211,500

$ 211,500

$ 222,900

$ 222,000

$ 182,000.00

$ 211,500

$ 211,500

$ 222,900

$ 10,458,401

$ 10,954,978.15

$ 11,588,265

$ 11,552,040

$ 11,646,898

$ 10,458,401

$ 10,954,978.15

$ 11,588,265

$ 11,552,040

$ 11,646,898

$ 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 $ 35,898 $ 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 $ ‐ $ 5,127,758

$ 28,237.69 $ 40,743.28 $ 11,321.92 $ 99,098.27 $ 2,269.50 $ 26,385.88 $ 574,439.00 $ 34,345.00 $ 66,389.14 $ 57,477.70 $ 28,385.89 $ 356,853.31 $ 43,180.02 $ 103,497.05 $ 355,485.23 $ 61,085.51 $ 33,359.55 $ 557,174.99 $ ‐ $ 129,775.10 $ 384,572.64 $ 10,338.67 $ 35,538.14 $ 25,680.73 $ 232,031.50 $ 6,187.90 $ 23,921.76 $ 133,287.82 $ 1,139,830.55 $ 4,256.58 $ 1,705.11 $ 1,652.53 $ 6,035.99 $ 4,255.00 $ 1,583.12 $ 64,654.16 $ ‐ $ 643,263.66 $ ‐ $ 5,328,299.89

$ 32,588 $ 56,167 $ 12,000 $ 132,697 $ 4,500 $ 40,000 $ 599,439 $ 27,300 $ 112,564 $ 75,418 $ 28,124 $ 362,400 $ 39,581 $ 110,176 $ 470,000 $ 60,700 $ 44,157 $ 525,584 $ ‐ $ 144,000 $ 458,369 $ 13,000 $ 40,000 $ 29,000 $ 275,000 $ 7,500 $ 32,500 $ 143,250 $ 1,330,000 $ 4,800 $ 2,000 $ ‐ $ 10,875 $ 6,500 $ 6,900 $ 62,932 $ 13,500 $ 657,810 $ ‐ $ 5,971,331

$ 25,293 $ 52,642 $ 11,275 $ 115,782 $ 1,468 $ 38,250 $ 599,439 $ 26,800 $ 95,938 $ 71,183 $ 25,010 $ 358,631 $ 43,000 $ 88,334 $ 467,000 $ 60,627 $ 39,427 $ 492,080 $ ‐ $ 137,000 $ 449,500 $ 5,622 $ 38,000 $ 30,125 $ 265,000 $ 7,000 $ 31,450 $ 61,455 $ 1,179,500 $ 4,775 $ 2,000 $ ‐ $ 5,500 $ 4,500 $ 6,900 $ 62,516 $ 10,000 $ 657,810 $ ‐ $ 5,570,832

$ 32,250 $ 55,680 $ 12,000 $ 150,050 $ 4,000 $ 40,000 $ 605,434 $ 27,500 $ 110,210 $ 73,265 $ 31,730 $ 370,055 $ 51,000 $ 109,000 $ 505,000 $ 60,700 $ 45,250 $ 571,122 $ ‐ $ 149,500 $ 446,150 $ 13,000 $ 37,000 $ 27,500 $ 300,000 $ 7,500 $ 32,500 $ 108,150 $ 1,230,000 $ 4,900 $ 2,000 $ ‐ $ 10,875 $ 6,000 $ 7,200 $ 81,695 $ 13,500 $ 677,544 $ ‐ $ 6,009,260

$ 5,127,758

$ 5,328,299.89

$ 5,971,331

$ 5,570,832

$ 6,009,260

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

$ 433,432.47 $ 200,000.00 $ 50,000.00 $ 683,432.47

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

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

$ 430,287 $ 400,000 $ 100,000 $ 930,287

$ 779,154

$ 683,432.47

$ 762,923

$ 762,923

$ 930,287

54010 Capital Equipment ‐ NEW 54020 Capital Equipment ‐ Software 54030 Capital Equipment ‐ Replacement TOTAL CAPITAL EQUIPMENT

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

$ 130,686.38 $ 50,845.00 $ 45,100.49 $ 226,631.87

$ 13,239 $ 18,950 $ 63,383 $ 95,573

$ 13,239 $ 17,950 $ 58,000 $ 89,189

$ 67,950 $ 18,000 $ 46,900 $ 132,850

$ 159,600

$ 226,631.87

$ 95,573

$ 89,189

$ 132,850

SUB‐TOTAL O&M FUND

$ 16,524,912

$ 17,193,342.38

$ 18,418,092

$ 17,974,984

$ 18,719,295

$ 16,524,912

$ 17,193,342.38

$ 18,418,092

$ 17,974,984

$ 18,719,295

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD

$ (2,557,474) $ (2,635,451.13) $ (2,744,173) $ (2,732,783) $ (2,663,206) $ (1,203,737) $ (1,209,710.45) $ (1,313,621) $ (1,313,621) $ (1,340,555) $ (3,761,212)

$ (3,845,161.58)

$ (4,057,794) $ (4,046,404)

$ (4,003,761)

NET OPERATION & MAINTENANCE FUND

$ 12,763,701

$ 13,348,180.80

$ 14,360,298

$ 14,715,534

www.msdbc.org

$ 13,928,580

‐2.91% 0.55% 1.00% 10.00% ‐ ‐100.00% 1.64% 0.58% 5.39% 0.51%

‐1.04% ‐0.87% 0.00% 13.08% ‐11.11% 0.00% 1.00% 0.73% ‐2.09% ‐2.85% 12.82% 2.11% 28.85% ‐1.07% 7.45% 0.00% 2.47% 8.66% ‐ 3.82% ‐2.67% 0.00% ‐7.50% ‐5.17% 9.09% 0.00% 0.00% ‐24.50% ‐7.52% 2.08% 0.00% ‐ 0.00% ‐7.69% 4.35% 29.81% 0.00% 3.00% ‐ 0.64%

4.21% 33.33% 100.00% 21.94% 413.25% ‐5.01% ‐26.01% 39.00% 1.64%

‐2.95% 2.05% 2.47%

Operation & Maintenance | Page 36

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

51250

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.

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

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.

51500

401(k)

52010

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.

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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

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Operation & Maintenance | Page 38

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

52410

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.

Maintenance – Bldgs. & Grounds

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

52420

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.

52430

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

52470

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.

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.

www.msdbc.org

Operation & Maintenance | Page 39

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

52720

52725

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.

Health Fair 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.

www.msdbc.org

Operation & Maintenance | Page 40

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

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.

54030

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.

www.msdbc.org

Operation & Maintenance | Page 41

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Office of the General Manager Organizational Chart General Manager Thomas E. Hartye, P.E. Executive Secretary Sondra Honeycutt

SSD Administrator Lisa Tolley

Dispatcher II Linda Phillips Office Assistant II Brenda Parker Kathy Meeks

www.msdbc.org

Operation & Maintenance | Page 42

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011-2012 1.

2.

3.

4.

5.

6.

7.

Awarded the Excellence in Management Award by NACWA 2008‐2011 ISO 14001 Re‐Certification for entire organization Used Master Plan as basis for Revenue Sharing with Public and Private Developers Began construction of$10 million microscreen project Rehabilitated and replaced approximately 50,000 feet of sewer main Completed Weaverville Pump Station Study and began improvements Finished design and purchased additional generators for Plant

Budget Highlights/Changes for FY 2012-2013 1.

2.

3.

4.

A 2.0% COLA and 2.0% Merit salary adjustment Includes completing the Construction of Secondary Microscreen project Reflects modest increase in medical plan costs Reflects further reduction of positions down to 149 and meeting new requirements through re‐ engineering 5. Includes GASB45 requirements and decrease in LGERS contribution

Goals & Objectives 

Goal: Oversee compliance with all State & Federal requirements for collection, treatment, and

disposal of wastewater. (MSD Objectives 1& 2)



Goal: Manage District in a financially sound manner. (MSD Goal 3)

www.msdbc.org

Operation & Maintenance | Page 43

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Office of the General Manager (continued) Goals & Objectives (continued) 

Goal: 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)



Goal: Manage community relations and education efforts. (MSD Objective 5)



Goal: 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

www.msdbc.org

Operation & Maintenance | Page 44

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Office of the General Manager ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 192,573.96 $ ‐ $ 192,573.96

$ 196,572.36 $ ‐ $ 196,572.36

$ 200,780 $ ‐ $ 200,780

$ 200,780 $ ‐ $ 200,780

$ 208,005 $ ‐ $ 208,005

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compensati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ 9,595.35 $ 12,136.00 $ 20,253.00 $ 2,584.00 $ ‐ $ 3,738.42 $ 7,044.39 $ 55,351.16

$ 13,166.31 $ 13,949.85 $ 26,958.06 $ 2,422.39 $ ‐ $ 4,534.70 $ 7,414.29 $ 68,445.60

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

$ 14,014 $ 15,360 $ 22,906 $ 2,609 $ ‐ $ 700 $ 10,001 $ 65,590

$ 14,020 $ 15,912 $ 23,290 $ 2,890 $ ‐ $ ‐ $ 10,401 $ 66,513

3.60% ‐ 3.60% ‐ ‐ 0.04% 3.59% 1.68% 10.77% ‐ ‐100.00% 4.00% ‐5.51% ‐ 6.10% ‐ 1.28% ‐ ‐ ‐26.67% ‐9.52% 0.00% 13.33% ‐ 0.00% 1.00% ‐ 2.00% ‐ 3.33% 3.33% ‐ ‐ ‐ ‐ 1.49% ‐14.29% ‐ ‐2.86% ‐50.00% ‐ ‐ ‐ ‐ ‐ 0.00% ‐ 0.00% 2.08% ‐ ‐ ‐ ‐ 4.35% ‐ ‐ 3.00% ‐ 0.69%

51325 Post Reti rement Insurance

$ 2,960.00

$ 2,426.41

$ 2,820

$ 2,820

$ 2,992

TOTAL SALARIES, WAGES & BENEFITS

$ 250,885.12

$ 267,444.37

$ 273,990

$ 269,190

$ 277,510

MATERIALS, SUPPLIES & SERVICES 52010 Adverti si ng 52050 Dues & Subscri pti ons 52100 Postage 52150 Trai ni ng & Ass oci ated Expens es 52160 Tui ti on As si s tance 52170 Di rector's Fees & Expenses 52180 Insurance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es /Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Professi onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs . & Ground 52420 Mai ntenance Equi pment 52430 Landscape Res torati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permits/Fees /Software Li cens es 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l ness Program 52730 Empl oyee Assi stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ 7,594.30 $ 9,103.62 $ 10,508.62 $ 3,420.86 $ ‐ $ 28,863.45 $ 113,878.00 $ ‐ $ 1,539.23 $ ‐ $ 353.97 $ 162.93 $ ‐ $ ‐ $ ‐ $ ‐ $ 35,212.15 $ 2,428.05 $ ‐ $ 111,321.08 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 4,830.27 $ ‐ $ 116,768.03 $ 3,491.14 $ ‐ $ ‐ $ ‐ $ ‐ $ 2,111.20 $ ‐ $ ‐ $ 629,212.44 $ ‐ $ 1,080,799.34

$ 8,865.98 $ 9,122.67 $ 11,321.92 $ 3,089.81 $ ‐ $ 26,385.88 $ 110,220.14 $ ‐ $ 2,051.01 $ ‐ $ 337.85 $ 1,771.85 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,281.65 $ 14,917.12 $ ‐ $ 121,059.62 $ 35.64 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 3,783.23 $ ‐ $ 120,180.78 $ 4,256.58 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,583.12 $ ‐ $ ‐ $ 643,263.66 $ ‐ $ 1,115,528.51

$ 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

$ 10,500 $ 18,750 $ 11,275 $ 3,000 $ ‐ $ 38,250 $ 115,017 $ ‐ $ 2,500 $ ‐ $ 900 $ 600 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,500 $ 23,225 $ ‐ $ 122,500 $ 450 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,450 $ ‐ $ 129,500 $ 4,775 $ ‐ $ ‐ $ ‐ $ ‐ $ 6,900 $ ‐ $ ‐ $ 657,810 $ ‐ $ 1,184,902

$ 11,000 $ 19,000 $ 12,000 $ 3,400 $ ‐ $ 40,000 $ 116,167 $ ‐ $ 2,550 $ ‐ $ 930 $ 620 $ ‐ $ ‐ $ ‐ $ ‐ $ 34,000 $ 24,000 $ ‐ $ 119,000 $ 500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,500 $ ‐ $ 130,000 $ 4,900 $ ‐ $ ‐ $ ‐ $ ‐ $ 7,200 $ ‐ $ ‐ $ 677,544 $ ‐ $ 1,208,311

INTERFUND TRANSFERS 52340 Debt Admi ni strati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 4,255.00 $ ‐ $ 4,255.00

$ ‐ $ 6,383.00 $ ‐ $ 6,383.00

$ ‐ $ 9,574 $ ‐ $ 9,574

$ ‐ $ 9,574 $ ‐ $ 9,574

$ ‐ $ 6,937 $ ‐ $ 6,937

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

SUB‐TOTAL O&M FUND

$ 1,335,939.46

$ 1,389,355.88

$ 1,483,591

$ 1,463,666

$ 1,492,758

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ 1,335,939.46

$ 1,389,355.88

$ 1,483,591

$ 1,463,666

$ 1,492,758

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

www.msdbc.org

‐ ‐27.54% ‐ ‐27.54% ‐ ‐ ‐ ‐ ‐ ‐ 0.62% ‐ ‐ ‐ ‐ ‐ 0.62%

Operation & Maintenance | Page 45

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Human Resources Organizational Chart Director of Human Resources James Hemphill

Environmental, Health & Safety Manager Dan Waugh

Public Relations Representative Mary Alice Hunter

Payroll/Benefits Manager Sheila Pike

HR Programs Manager Pam Thomas

EHS Administrative Assistant Sandra Moore

www.msdbc.org

Operation & Maintenance | Page 46

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011-2012 1.

2.

3.

4.

5.

6.

7.

8.

9.

Identified & Coordinated training for "critical position" replacements Held 2nd Annual "WELLNESS DAY" focusing on spouses & dependents medical benefits education Completed medical/ physical exams 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" Partnered with AB Tech for employee training Re‐engineered Performance Appraisal System Continued use of Three Streams Medical Services to provide on‐site services at no cost to employees 10. Implemented a Flexible Savings Account option for employee medical expenses and dependent care

Budget Highlights/Changes for FY 2012-2013 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.)

3. Hired an Environmental Health & Safety Manager

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Operation & Maintenance | Page 47

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Humaan Resoources (ccontinued) Goals & Objectiv ves 

Goa al: Provide ssupervisory le eadership devvelopment traaining. (MSD Objective 3)  Objecttive: provide appropriate ttraining sessioons for emplo oyees



Goa al: Train sup pervisors in im mproving emp ployee relatioons and manaaging employyee personnell

issues. (M MSD Objectivve 3)



Goa al: Maintain n consistency throughout D District on dissciplinary actiions. (MSD Objective 3)  Objectiive: Train sup pervisors to kkeep personn el informed/iinvolved in alll dealings leaading up to aa disciplinary step. 



Goa al: Improve the pool of aapplicants to rreflect the divversified com mmunity. (MSD Objective 3 3)



Goa al: Promote e District employment opportunities at community jo ob fairs. (MSD D Objective 3 3)  Objectiive: Attend aat least one jo ob fair annuallly in Buncom mbe and Madiison Countiess



Goa al: Ongoing review of new position claassifications oor positions w with added reesponsibilitiess.

(MSD Ob

bjective 3)  Objectiive: Review LLabor Grade o of new & exissting positions as necessarry



Goa al: Keep perrsonnel policies up to date e. (MSD Objecctive 3)  Objectiive: Review 2 20% of policie es per year



Goa al: Keep job b descriptions up to date. (MSD Objectivve 3)  Objectiive: Review 2 20% of job de escriptions peer year



Goa al: Promote e Wellness Pro ogram.( MSD Objective 3)   Objectiive: Have at least 75% of e employees paarticipate in H Health Fair



Goa al: Minimize e time positio ons are vacant. (MSD Goalss 1 & 2)  Objectiive: Have positions filled w within 20 dayys



Goa al: Minimize e cost to fill vaacancies. (MSSD Goal 3)  Objectiive: Limit ave erage cost to $400



Goa al: Process p payroll in a tim mely and accurate manne r. (Objective 3)  Objectiive 1: No errors in payche ecks  Objectiive 2: All payyroll tax and b benefit withhooldings remittted within prrescribed deadlin nes



Goa al: Promote e efficient utilization of employee beneffits. (Objectivve 3)  Objectiive 1: Provide quarterly ed ducation or uupdates to em mployees concerning differrent types o of benefits orr other personnal financial iissues  Objectiive 2: Resolve employee p payroll and beenefit concerrns within two o business daays

Performa ance Mea asures Tassk 1. Mon nitor and evaluate Skill Bassed Pay Syste em www.msdbcc.org

09‐10 Yes

10‐11 Yes

11‐‐12 est.

Yes

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Human Resources (continued) Performance Measures (continued) 2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Task Assist in the administration of the Employee Wellness Program # of external vacancies Avg. # of days to fill vacancies Avg. advertising cost per vacancy 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.

09‐10 10‐11 11‐12 est.

Yes Yes Yes 4 6 5 15 18 18 $665.00 $665.00 $700 123 55 0 130 135 56 <.1% <.1% <.1% 100%

100%

20

24

100%

99%

99%

99%

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Operation & Maintenance | Page 49

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011-2012 1. New Safety Manager, Dan Waugh.

2. Continue to manage the District experience modifier rate below 1.0.

3. Eighth 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 4.

5.

6.

7.

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 a Traffic Control Workzone Supervisor.

MSD's electrical work practices have been strengthened.

Budget Highlights/Changes for FY 2012-13 1. Continuing current programs and ongoing ISO efforts along with increasing presence and training efforts with Plant Maintenance and Operations

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: Promote safety by focusing on training and compliance inspections.  Objective: Maintain health focus including disease prevention and workers

compensation.  Objective: Continuously evaluate current safety practices and improve/change as

needed.  Objective: Manage safety related contractual efforts including: Drug Testing, Hoist

Testing, Fire Protection, Hearing Conservation.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Environmental, Health & Safety (continued) Goals & Objectives (continued) 

Goal: Maintain full compliance with all applicable legal requirements and governmental

standards.  Objective: Have zero (0) OSHA violations.  Objective: Stay abreast of changes and regulations and how they apply to MSD.

Performance Measures Task 1.

2.

3.

3.

4.

5.

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

CY10

CY11

11 2 7.02 33 24 41

7 0 4.82 38 24 45

CY12 to date

2 0 1.33 7 6 9

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Operation & Maintenance | Page 51

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Human Resources ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 307,901 $ ‐ $ 307,901

$ 297,604 $ 599 $ 298,204

$ 350,967 $ ‐ $ 350,967

$ 350,967 $ ‐ $ 350,967

$ 372,145 $ ‐ $ 372,145

6.03% ‐ 6.03%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compensati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ 15,062 $ 22,461 $ 60,756 $ 7,752 $ ‐ $ 3,115 $ 15,196 $ 124,342

$ 19,727 $ 21,641 $ 66,561 $ 7,270 $ ‐ $ 2,019 $ 14,727 $ 131,945

$ 24,707 $ 27,078 $ 68,718 $ 7,830 $ ‐ $ 3,100 $ 17,505 $ 148,938

$ 24,498 $ 26,849 $ 68,718 $ 7,830 $ ‐ $ 1,500 $ 16,369 $ 145,764

$ 25,083 $ 28,469 $ 69,870 $ 8,670 $ ‐ $ ‐ $ 18,608 $ 150,700

1.52% 5.14% 1.68% 10.73% ‐ ‐100.00% 6.30% 1.18%

51325 Post Reti rement Ins urance

$ 8,880

$ 7,281

$ 8,460

$ 8,460

$ 8,976

6.10%

TOTAL SALARIES, WAGES & BENEFITS

$ 441,124

$ 437,430

$ 508,365

$ 505,191

$ 531,821

4.61%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subs cri pti ons 52100 Postage 52150 Trai ni ng & As soci ated Expens es 52160 Tui ti on As si s tance 52170 Di rector's Fees & Expenses 52180 Ins urance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es/Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Profess i onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs . & Ground 52420 Mai ntenance Equi pment 52430 Lands cape Restorati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outs i de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permi ts/Fees /Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l nes s Program 52730 Empl oyee As s i stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ 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

$ 7,318 $ 4,026 $ ‐ $ 17,470 $ 2,270 $ ‐ $ 1,777 $ ‐ $ 959 $ 319 $ 2,824 $ 2,784 $ 43,180 $ ‐ $ ‐ $ ‐ $ 38 $ 27,013 $ ‐ $ ‐ $ 889 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,705 $ 1,653 $ 6,036 $ 4,255 $ ‐ $ 9,269 $ ‐ $ ‐ $ ‐ $ 133,785

$ 3,000 $ 5,150 $ ‐ $ 21,124 $ 4,500 $ ‐ $ 1,854 $ ‐ $ 1,932 $ 643 $ 2,713 $ 932 $ 39,581 $ ‐ $ ‐ $ ‐ $ 4,230 $ 49,450 $ ‐ $ 9,500 $ 1,069 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ ‐ $ 10,875 $ 6,500 $ ‐ $ 11,020 $ ‐ $ ‐ $ ‐ $ 176,074

$ 805 $ 5,150 $ ‐ $ 23,700 $ 1,468 $ ‐ $ 1,854 $ ‐ $ 1,932 $ 316 $ 2,800 $ 850 $ 43,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 42,025 $ ‐ $ 2,500 $ 1,050 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,000 $ ‐ $ 5,500 $ 4,500 $ ‐ $ 11,018 $ ‐ $ ‐ $ ‐ $ 150,468

$ 3,000 $ 5,300 $ ‐ $ 25,000 $ 4,000 $ ‐ $ 1,873 $ ‐ $ 1,682 $ 1,365 $ 5,900 $ 2,600 $ 3,500 $ ‐ $ ‐ $ ‐ $ 4,250 $ 49,752 $ ‐ $ 9,500 $ 4,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 3,100 $ ‐ $ ‐ $ 2,000 $ ‐ $ 10,875 $ 6,000 $ ‐ $ 9,000 $ ‐ $ ‐ $ ‐ $ 152,697

0.00% 2.91% ‐ 18.35% ‐11.11% ‐ 1.02% ‐ ‐12.94% 112.17% 117.46% 178.89% ‐91.16% ‐ ‐ ‐ 0.46% 0.61% ‐ 0.00% 274.25% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.00% ‐ 0.00% ‐7.69% ‐ ‐18.33% ‐ ‐ ‐ ‐13.28%

INTERFUND TRANSFERS 52340 Debt Admi ni strati on Expens es 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ 9,245 $ ‐ $ 9,245

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ 22,000 $ ‐ $ ‐ $ 22,000

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 592,069

$ 580,460

$ 684,439

$ 655,659

$ 706,518

3.23%

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐

$ 592,069

$ 580,460

$ 684,439

$ 655,659

$ 706,518

3.23%

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Administrative Services Organizational Chart Director of Administrative Services Peter Weed

Facilities Maintenance Manager Scott Monroe

Fleet Maintenance Manager Neil Hall

IT Network Manager Matthew Walter

Technicians Pat Carver Pritchard Hensley Keith Lewis Calvin Nolan David Vicary

Mechanics Stephen Buckner Travis Green Paul Wilkins

IT Technician II Jeff Wallace

www.msdbc.org

IT Technician I Steven Briggs Database Analyst Dean Allen

Database Administrator/Developer Rodney Smith

WRF Maintenance Manager Jay Cormier

Mechanical Maintenance Crew Leader Mike Ball (acting)

Electric Maintenance Crew Leader Terry Burnette (acting)

Pump Station Maintenance Crew Leader Tim Coates (acting)

Technicians Mark Ferris Thomas Franklin Charles Gammon Matthew Green Toby Roberts Robert Triplett

Technicians Larry Briggs David Burgin Mickey Lewis Dillard Rice

Technicians Willard Frisbee Dewayne Martin

Operation & Maintenance | Page 53

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011-2012 1. The Biodiesel program began in July 2003. By end of June 2012, MSD purchased more than 650,000 gallons of B20 replacing more than 130,000 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. FY12 purchases will exceed 15,000 gallons.

3. Maintained an 85% work order completion rate for direct labor on vehicles versus shop time (85% target).

Budget Highlights/Changes for FY 2012-2013 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 FY13 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.  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.

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Fleet Maintenance (continued) Performance Measures Task 1. In‐house direct labor 2. Direct labor spent on work orders 3. Same day turnaround PM vehicles

09‐10 97.50% 87% 95%

10‐11 98% 88% 95%

11‐12 est.

98% 85% 95%

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Information Technology (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. All IT work done 100% in‐house. No vendor or contractors used for IT support.

Accomplishments for FY 2011-2012 1. Rewiring of Treatment Plant Emissions Control Room on the roof of the Treatment Plant. Rewiring increased speeds and reliability for Emissions PC. Included addition of extra/redundant wiring set in cause of failure.

2. Implementation of fourth Dell EqualLogic SANs to support growth of GIS Department and imagery archiving. As well as increasing storage for upcoming CityWorks/Granite projects.

3. Installed new (second) GIS database server to support and give way for development of FLEX Web GIS application. Increased file redundancy and overall file access speeds. New Blade offers GIS ability to have old server as a staging area for in house testing.

4. Implementation of disaster recovery from Dell EqualLogic SANs to recover lost files with one hour or less downtime.

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, 25+ desktop replacements and/or installations for MSD users.

7. Assisted in planning and oversight of OCE plotter/scanner for Engineering Division.

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. Minimum 20% per year coverage for district upgrades.

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. Nearly all problems solved SAME DAY. 11. Upgraded ALL 17" LCD monitors to 20" or above LCD/LED for 100% of MSD employees.

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. www.msdbc.org

Operation & Maintenance | Page 56

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Information Technology (IT) (continued) Accomplishments for FY 2011-2012 (continued) 13. Implementation of new Internet Service Provider for MSD. New provider offers increased capacity for public web requests and faster GIS Mapping services.

14. NC One Call Software Upgrade for System Services.

15. Replaced Treatment Plant control room wiring system with new cabling racks and conduit. All wiring organized and labeled for current and future IT employees.

16. Replaced black and white, low resolution campus security cameras with color, higher resolution models. Increasing accuracy and reliability of camera security.

Budget Highlights/Changes for FY 2012-2013 1. Plan and install new security pass gates and doors at Maintenance, Treatment Plant Administration, Microscreen, and Raw Pumps. Etc. 2. Assist in planning for implementation of Granite XP & CityWorks software. Continued support for both products.

3. Install new fiber optic trunks from Mull building to Treatment Plant Administration building. Giving new, redundant connections for campus coverage and expanding of security systems.

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:  Goal: Provide all MSD staff with outstanding customer service. 

Goal: 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.



Goal:

Goal:

Goal:

Goal: Goal: Goal:

    

Continue testing and researching in preparation for upgrades, including Windows 8, Server, Cloud Computing and Storage.

Install Adobe Acrobat X or above for all users at MSD. Help toward the move to a paperless work place.

Assist in implementing Granite XP & CityWorks software. Continued support for both products.

Implement Blade server solution for future data growth.

Implement larger wireless coverage for fleet laptops and data continuity.

Plan and install new VOIP phone system for MSD Riverside campus.

Performance Measures Task 1. In‐house direct labor (except fiber optic repairs).

2. Same day turnaround on user issues/assistance. www.msdbc.org

09‐10 100% 85%

10‐11 100% 92%

11‐12 est.

100% 94%

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Management Information Systems (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 2011-2012 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

Revamp of the OSIRIS database in accordance with improved maintenance tracking process Selected CityWorks as an Enterprise CMMS solution Created and conducted on‐site classes for Word, Excel and Outlook Began a series of classes for basic computer education in a larger effort to better equip our staff for migration to CityWorks.

Ongoing Revamps of the ACT III (Paving database) to accommodate new city contract Fully documented WOMS, Fleet, OSIRIS and PMS to facilitate work with our CMMS Implementation partner (Woolpert) Began work with Woolpert on phase one of enterprise CMMS solution (Documentation of business processes and basic system configuration) Relocated Data Admin office to first floor to better support System Services Division Created new reporting for WOMS, PMS, OSIRIS Negotiation Tracking and ACT III IW Waste Reporting Site completed by June 30, 2012 using outside vendor Successfully data mined Asheville water billing data from their new system Created Process Lab webpage for data entry Internal Audit ‐ Completion by 6/30/12 Continued desktop support for any and all current software

Budget Highlights/Changes for FY 2012-2013 1.

2.

3.

4.

5.

Selected CityWorks as enterprise CMMS Contracted with Woolpert to be an implementation partner for CityWorks deployment Continue on‐site training courses Transitioned Database Analyst to IT Department Transitioned Database Admin to Finance Department

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Operation & Maintenance | Page 58

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Management Information Systems (MIS) (continued) 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 and desktop support:  Goal: Increase and continue on‐site computer training  Goal: Complete initial deployment of CityWorks (SSD Complete, portions of Fleet and PMS)  Goal: Define and begin Phase II of CityWorks Deployment  Goal: As needed, clean and/or normalize all data to facilitate migration to CityWorks CMMS  Goal: Continue to create new functionality, and analytical reporting abilities to our SCADA and

On Call systems  Goal: Paperless Paychecks ‐ Decide which avenue to go with and complete testing  Goal: Assist in providing IT hardware support as needed  Goal: Effective Crystal Report writing for CityWorks and other applications  Goal: Modify water billing databases & reports to work properly  Goal: Move existing Access databases for plant into SQL back‐end  Goal: Continue development of web apps for plant using SCADA data and existing databases  Goal: Move existing plant spreadsheets to databases  Goal: Continued support and development of current data systems and software

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Administrative Services ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 864,505 $ 20,334 $ 884,839

$ 901,846 $ 13,433 $ 915,280

$ 909,634 $ 14,500 $ 924,134

$ 909,634 $ 13,800 $ 923,434

$ 933,138 $ 14,860 $ 947,998

2.58% 2.48% 2.58%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compens ati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ 43,473 $ 64,525 $ 151,890 $ 12,920 $ ‐ $ ‐ $ 32,943 $ 305,751

$ 60,475 $ 66,374 $ 182,239 $ 12,117 $ ‐ $ ‐ $ 33,998 $ 355,203

$ 64,504 $ 70,695 $ 183,247 $ 13,050 $ ‐ $ ‐ $ 44,863 $ 376,359

$ 64,455 $ 70,642 $ 183,247 $ 13,050 $ ‐ $ ‐ $ 41,412 $ 372,806

$ 63,896 $ 72,522 $ 186,321 $ 23,120 $ ‐ $ ‐ $ 46,659 $ 392,518

‐0.94% 2.58% 1.68% 77.16% ‐ ‐ 4.00% 4.29%

51325 Pos t Reti rement Insurance

$ 22,200

$ 19,414

$ 22,560

$ 22,560

$ 23,935

6.09%

TOTAL SALARIES, WAGES & BENEFITS

$ 1,212,790

$ 1,289,896

$ 1,323,053

$ 1,318,800

$ 1,364,451

3.13%

$ 5,888 $ 342 $ ‐ $ 7,930 $ ‐ $ ‐ $ 132,130 $ 25,000 $ 14,155 $ 5,500 $ 700 $ 329,919 $ ‐ $ 8,075 $ 2,000 $ ‐ $ ‐ $ 9,900 $ ‐ $ 12,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 265,000 $ 7,000 $ 26,000 $ 24,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 40,000 $ 10,000 $ ‐ $ ‐ $ 925,539

$ 9,250 $ 525 $ ‐ $ 4,500 $ ‐ $ ‐ $ 153,841 $ 25,500 $ 17,860 $ 5,750 $ 1,450 $ 336,385 $ 640 $ 6,500 $ 5,000 $ ‐ $ ‐ $ 68,500 $ ‐ $ 20,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 300,000 $ 7,500 $ 27,000 $ 25,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 52,050 $ 13,500 $ ‐ $ ‐ $ 1,080,751

‐ 57.09% ‐3.09% ‐ ‐48.45% ‐ ‐ 16.43% 0.00% 9.36% ‐14.81% 45.00% 1.94% ‐ ‐23.53% 0.00% ‐ ‐ 495.65% ‐ 66.67% ‐ ‐ ‐ ‐ 9.09% 0.00% 0.00% 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ 28.79% 0.00% ‐ ‐ 13.49%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subscri pti ons 52100 Pos tage 52150 Trai ni ng & As soci ated Expenses 52160 Tui ti on Ass i s tance 52170 Di rector's Fees & Expenses 52180 Ins urance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es /Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Profes si onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs. & Ground 52420 Mai ntenance Equi pment 52430 Lands cape Restorati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permi ts/Fees /Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l nes s Program 52730 Empl oyee Ass i stance Program 52900 Other Operati ng Expens es 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ 11,947 $ 535 $ ‐ $ 3,363 $ ‐ $ ‐ $ 130,822 $ 24,725 $ 14,426 $ 5,062 $ 837 $ 320,890 $ ‐ $ 2,808 $ 4,667 $ ‐ $ ‐ $ 3,713 $ ‐ $ 6,379 $ ‐ $ ‐ $ ‐ $ ‐ $ 161,829 $ 7,521 $ 19,989 $ 25,994 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 41,676 $ 6,240 $ ‐ $ ‐ $ 793,423

$ 5,964 $ 421 $ ‐ $ 2,929 $ ‐ $ ‐ $ 126,619 $ 32,443 $ 9,587 $ 4,460 $ 830 $ 327,227 $ ‐ $ 6,850 $ 5,714 $ ‐ $ ‐ $ 850 $ ‐ $ 8,715 $ ‐ $ ‐ $ ‐ $ ‐ $ 232,032 $ 6,188 $ 20,139 $ 26,808 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 43,042 $ ‐ $ ‐ $ ‐ $ 860,817

$ ‐ $ 5,888 $ 542 $ ‐ $ 8,730 $ ‐ $ ‐ $ 132,130 $ 25,500 $ 16,332 $ 6,750 $ 1,000 $ 329,967 $ ‐ $ 8,500 $ 5,000 $ ‐ $ ‐ $ 11,500 $ ‐ $ 12,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 275,000 $ 7,500 $ 27,000 $ 25,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 40,414 $ 13,500 $ ‐ $ ‐ $ 952,254

INTERFUND TRANSFERS 52340 Debt Admi ni s trati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 6,383 $ ‐ $ 6,383

$ ‐ $ 12,766 $ ‐ $ 12,766

$ ‐ $ 19,148 $ ‐ $ 19,148

$ ‐ $ 19,148 $ ‐ $ 19,148

$ ‐ $ 5,184 $ ‐ $ 5,184

‐ ‐72.93% ‐ ‐72.93%

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ 56,493 $ 4,231 $ ‐ $ 60,724

$ 36,482 $ 40,602 $ ‐ $ 77,084

$ ‐ $ 18,950 $ 35,000 $ 53,950

$ ‐ $ 17,950 $ 30,000 $ 47,950

$ ‐ $ 18,000 $ 23,000 $ 41,000

‐ ‐5.01% ‐34.29% ‐24.00%

SUB‐TOTAL O&M FUND

$ 2,073,320

$ 2,240,563

$ 2,348,405

$ 2,311,437

$ 2,491,386

6.09%

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐

$ 2,073,320

$ 2,240,563

$ 2,348,405

$ 2,311,437

$ 2,491,386

6.09%

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

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Operation & Maintenance | Page 60

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Services Organizational Chart Director of Financial Services W. Scott Powell

Budget Analyst I Teresa Gilbert

Purchasing Supervisor Julie Willingham

Accounting Manager Cheryl Rice

Accounting Technician II Amy Alexander

Accounting Technician I Sheila Kilby

Accounting Technician I Jody Germaine

Purchasing Agent II Charles Pertiller

Purchasing Agent I Denver Bradley

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Services (continued) 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 2011-2012 1. Received the GFOA “Excellence in Financial Reporting” award for the Comprehensive Annual Financial Report (CAFR) for FY ending June 30, 2011.

2. Received the GFOA “Distinguished Budget” award for the Budget Document prepared for FY ending June 30, 2011.

3. Continuation of the paper reduction initiative by scanning all vendor invoices and general ledger entries.

Budget Highlights/Changes for FY 2012-2013 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.  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. www.msdbc.org

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Services (continued) Goals & Objectives (continued) 









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 Task 09‐10 10‐11 11‐12 est.

1. Receive the Distinguished Budget Presentation yes yes yes Award 2. Receipt of GFOA Excellence in Financial Reporting yes yes yes Award for CAFR 3. CAFR and budget document available on website yes yes yes 4. District debt rating Moody’s/Standard & Poor’s/Fitch Aa2/AA/AA+ Aa2/AA/AA+ Aa2/AA/AA+ 5. Compliance with all provisions of bond order yes yes yes 6. Southern Urban COL % increase 1.00% 3.50% 3.90% 7. MSD rate increase 3.75% 3.50% 3.00% Comments: Assesses affordability of sewer rate increases when compared to overall regional price

increases.

8. Ratio of actual to budgeted sewer revenues 99.97% 104.00% 99.50% 9. Ratio of operating and maintenance total 93.85% 95.55% 97.00% expenditures actual to budgeted Comments: These illustrate the accuracy of financial projections, and adequacy of revenues to meet

expenditures.

10. Interest and debt management costs as a 3.50% 3.25% 3.40% percentage of outstanding debt 11. MSD Investment Yield 1.28% 1.08% 0.90%

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Financial Services (continued) Performance Measures (continued) Task 09‐10 10‐11 11‐12 est.

12. NC Cash Management Trust (Money Market) 0.17% 0.12% 0.06% 13. 6‐Month T‐Bill Secondary Market (Calendar) 0.20% 0.16% 0.08% Comments: Rates of return reflect overall declining interest rates in the fixed income market.

14. Collection of internally billed residential accounts 96.50% 96.75% 96.75% 97.50% 98.00% 98.00% 15. Collection of internally billed industrial accounts 16. Percentage of voided accounts payable checks 5.00% 4.85% 4.75% Comments: This ratio illustrates the effectiveness of the cash disbursement process.

17. Percentage of total O&M costs expended on 4.91% 4.80% 4.78% Finance function

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Operation & Maintenance | Page 64

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 2011-2012 1.

2.

3.

4.

5.

Continue to offer high level of Customer Service to all customers internal and external to MSD. The Purchasing Supervisor participated on ISO Team including role as internal auditor.

Purchasing Supervisor received Certified Local Government Purchasing Officer re‐certification.

Successfully auctioned MSD surplus material receiving over $110,000.00 in receipts.

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 2012-2013 1. Maintaining current staffing and expenditure levels.

Goals & Objectives 

Goal: Provide services and supplies in a timely manner (LT6 and Purchasing Policy #2)  Objective: Place purchase orders within three business days of requisition.  Objective: Bid capital equipment within two weeks of requisition  Goal: Maintain cost‐effective and sufficient inventory levels  Objective: To maintain an inventory loss level below 3%. (Purchasing Policy #2)  Objective: To minimize emergency purchases.  Goal: Assure compliance with legal mandates and District policies for procurement activities  Objective: To purchase at least 12% of all goods and services from minority

owned/operated businesses

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Operation & Maintenance | Page 65

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Purchasing & Warehouse (continued) 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.

www.msdbc.org

09‐10 98%

10‐11 97%

11‐12 est.

97%

98%

99%

99%

2.00%

0.50%

1.75

13%

12.00%

12.25

Operation & Maintenance | Page 66

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Financial Services ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 391,038 $ ‐ $ 391,038

$ 396,116 $ ‐ $ 396,116

$ 417,740 $ 500 $ 418,240

$ 413,374 $ 500 $ 413,874

$ 462,345 $ 500 $ 462,845

10.68% 0.00% 10.66%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compens ati on

$ 19,335 $ 29,205 $ 81,008 $ 10,336

$ 26,653 $ 29,125 $ 88,644 $ 9,692

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

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

$ 31,196 $ 35,408 $ 104,806 $ 13,008

7.99% 11.83% 14.39% 24.61%

51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ ‐ $ 17,233 $ 157,117

$ ‐ $ 18,153 $ 172,267

$ ‐ $ 20,359 $ 182,970

$ ‐ $ 20,359 $ 182,970

$ ‐ $ 23,118 $ 207,536

‐ 13.55% 13.43%

51325 Pos t Reti rement Insurance

$ 11,840

$ 9,706

$ 11,280

$ 11,280

$ 13,464

19.36%

TOTAL SALARIES, WAGES & BENEFITS

$ 559,995

$ 578,089

$ 612,490

$ 608,124

$ 683,845

11.65%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subs cri pti ons 52100 Pos tage 52150 Trai ni ng & Ass oci ated Expens es 52160 Tui ti on As si stance 52170 Di rector's Fees & Expenses 52180 Insurance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es /Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Profes si onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs . & Ground 52420 Mai ntenance Equi pment 52430 Lands cape Res torati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leas es 52510 Permi ts /Fees/Software Li cens es 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l nes s Program 52730 Empl oyee As si stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equi pment 52915 Copi ers , Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

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

$ ‐ $ 1,460 $ ‐ $ 11,749 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,130 $ 516 $ 3,733 $ 1,316 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 55,653 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,076 $ ‐ $ ‐ $ ‐ $ 76,632

$ ‐ $ 2,000 $ ‐ $ 13,425 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,300 $ 1,050 $ 2,811 $ 1,200 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,000 $ 47,634 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 986 $ ‐ $ ‐ $ ‐ $ 71,405

$ ‐ $ 1,750 $ ‐ $ 9,500 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,300 $ 1,050 $ 2,810 $ 1,150 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,000 $ 46,500 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 986 $ ‐ $ ‐ $ ‐ $ 66,046

$ ‐ $ 1,800 $ ‐ $ 14,990 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,300 $ 1,250 $ 3,000 $ 1,200 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,500 $ 54,620 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,500 $ ‐ $ ‐ $ ‐ $ 81,160

‐ ‐10.00% ‐ 11.66% ‐ ‐ ‐ ‐ 0.00% 19.05% 6.73% 0.00% ‐ ‐ ‐ ‐ 50.00% 14.67% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 52.21% ‐ ‐ ‐ 13.66%

INTERFUND TRANSFERS 52340 Debt Admi ni strati on Expens es 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ 1,889 $ ‐ $ ‐ $ 1,889

$ 1,889 $ ‐ $ ‐ $ 1,889

$ ‐ $ ‐ $ ‐ $ ‐

‐100.00% ‐ ‐ ‐100.00%

SUB‐TOTAL O&M FUND

$ 626,730

$ 654,722

$ 685,785

$ 676,059

$ 765,005

11.55%

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐

$ 626,730

$ 654,722

$ 685,785

$ 676,059

$ 765,005

11.55%

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

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Operation & Maintenance | Page 67

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Water Reclamation Facility Organizational Chart Director of Water Reclamation Facility VACANT

WRF Interim Director Dennis Lance

Field Operations Manager Monty Payne

Industrial Pretreatment Coordinator Jon H. van Hoff

Industrial Waste Chemist Wayne Tipton Industrial Waste Technician VACANT

www.msdbc.org

SCADA/PLC Technician Dale Maxwell VACANT

WRF Senior Operator Lonnie Hargrove

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

Operation & Maintenance | Page 68

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 32 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 2011-2012 1. Final Microscreen Replacement Project–construction phase was almost completed during this FY 2. Contracted with Power Secure to monitor, maintain and exercise the 2 meg back‐up generator at the WRF 3. The grit in RBC Basin # 1 was removed by Hydrovac 4. WRF SCADA–continued improvements to plant, remote pump station & flow monitoring SCADA 5. Continued comprehensive WRF process monitoring/evaluation–RBC and solids separation/removal 6. Continued hydrogen sulfide (H2S) gas detection/monitoring system at Carrier Bridge Pump Station – liquid and vapor phase odor control program 7. Continued conversion of plant SCADA systems 8. Continued structural systems improvements at WRF and pump stations 9. Continued/Expanded Grease Public Education–local schools, civic groups, advertising 10. Continued development of in‐house replacement work order database for WRF 11. Major pump rehab–re‐built # 2 & # 3 influent pumps 12. Up graded the grease removal system for grit and grease 13. Started data collection to evaluate ammonia removal 14. Finalize SUO to adopted the EPA’s Streamlining Rule 15. Ordered grinder for Erwin Hills Pump Station

Budget Highlights/Changes for FY 2012-2013 1.

2.

3.

4.

5.

6.

Final micro‐screen replacement project completion of construction and start up Electrical improvements–the addition of generation to meet plant load and upgrade switch gear Major pump rehab–evaluate replacement of # 1 influent pumps (pump & motor) RBC system improvements–bearing replacement Comprehensive WRF Process Monitoring & Evaluation–RBC System & Solids Separation Process Comprehensive WRF Process Monitoring & Evaluation–Incineration and the new Air Quality Regulations

www.msdbc.org

Operation & Maintenance | Page 69

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Water Reclamation Facility (continued) Budget Highlights/Changes for FY 2012-2013 (continued) 7.

8.

9.

10.

11.

Continuation of WRF SCADA conversion project Remote Facilities (Pump Stations & Flow Monitoring) SCADA Improvements Incinerator building renovation–electrical & control room improvements Initiation of pump station facility renovation program + creation of dedicated crew Continuation of roof replacement & structural rehab projects at pump stations & WRF

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.  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 FY13.  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 FY13.

Performance Measures Task 1. Daily (average) flow, treated MGD 2. Maximum daily flow treated, MGD 3. Dry tons of bio‐solids processed www.msdbc.org

09‐10 21.3 57.8 4985

10‐11 18.5 56.8 4767

11‐12 est.

18.1 50.2 4325

Operation & Maintenance | Page 70

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Water Reclamation Facility (continued) Performance Measures (continued) 4.

5.

6.

7.

8.

9.

10.

Task 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

09‐10 $721 $114

10‐11 $826 $163

11‐12 est. $910 $114

91

91

93

90 90 90 0 1* 0 70:30:00 70:30:00 70:30:00 >95% >95% >95%

*MSD received a NOV for a failed Bioassay test in November. The follow‐up testing in December & January and required monitoring in February all passed. The failure was because of high chlorine concentration during a high flow period and no detention time.

www.msdbc.org

Operation & Maintenance | Page 71

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY 13 Budget – Water Reclamation Facility ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 1,575,785 $ 87,375 $ 1,663,160

$ 1,580,798 $ 72,134 $ 1,652,932

$ 1,736,300 $ 90,450 $ 1,826,750

$ 1,736,300 $ 85,000 $ 1,821,300

$ 1,717,911 $ 90,000 $ 1,807,911

‐1.06% ‐0.50% ‐1.03%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compensati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ 81,137 $ 122,021 $ 344,284 $ 50,388 $ ‐ $ ‐ $ 61,086 $ 658,915

$ 113,844 $ 120,679 $ 371,689 $ 47,252 $ ‐ $ ‐ $ 73,776 $ 727,241

$ 127,528 $ 139,768 $ 377,946 $ 50,892 $ ‐ $ 300 $ 85,669 $ 782,103

$ 127,127 $ 139,329 $ 377,946 $ 50,892 $ ‐ $ 300 $ 85,669 $ 781,263

$ 121,853 $ 138,306 $ 384,287 $ 47,687 $ ‐ $ ‐ $ 85,897 $ 778,030

‐4.45% ‐1.05% 1.68% ‐6.30% ‐ ‐100.00% 0.27% ‐0.52%

Post Reti rement Insurance

$ 50,320

$ 40,040

$ 46,530

$ 46,530

$ 49,367

6.10%

51325

TOTAL SALARIES, WAGES & BENEFITS

$ 2,372,395

$ 2,420,213

$ 2,655,383

$ 2,649,093

$ 2,635,308

‐0.76%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subs cri pti ons 52100 Postage 52150 Trai ni ng & Associ ated Expenses 52160 Tui ti on Assi stance 52170 Di rector's Fees & Expens es 52180 Insurance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es/Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Professi onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs . & Ground 52420 Mai ntenance Equi pment 52430 Landscape Restorati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permi ts/Fees/Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l nes s Program 52730 Empl oyee As si stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ 4,772 $ 3,453 $ ‐ $ 14,083 $ ‐ $ ‐ $ 129,917 $ ‐ $ 24,351 $ 17,075 $ 3,357 $ 17,279 $ ‐ $ 30,657 $ 407,788 $ ‐ $ ‐ $ 191,519 $ ‐ $ ‐ $ 362,927 $ ‐ $ 43,120 $ 1,032 $ ‐ $ ‐ $ ‐ $ 11,178 $ 899,979 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,026 $ ‐ $ ‐ $ ‐ $ 2,164,512

$ 5,921 $ 15,131 $ ‐ $ 13,612 $ ‐ $ ‐ $ 125,744 $ ‐ $ 21,870 $ 15,824 $ 3,865 $ 20,654 $ ‐ $ 16,251 $ 349,771 $ ‐ $ ‐ $ 352,275 $ ‐ $ ‐ $ 360,681 $ ‐ $ 35,538 $ 2,786 $ ‐ $ ‐ $ ‐ $ 7,969 $ 1,019,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 777 $ ‐ $ ‐ $ ‐ $ 2,368,319

$ 7,700 $ 15,000 $ ‐ $ 16,773 $ ‐ $ ‐ $ 131,216 $ ‐ $ 37,000 $ 20,625 $ 5,000 $ 22,000 $ ‐ $ 25,676 $ 465,000 $ ‐ $ 427 $ 287,000 $ ‐ $ ‐ $ 400,000 $ ‐ $ 40,000 $ 5,000 $ ‐ $ ‐ $ ‐ $ 12,000 $ 1,200,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,983 $ ‐ $ ‐ $ ‐ $ 2,692,399

$ 7,700 $ 14,800 $ ‐ $ 15,773 $ ‐ $ ‐ $ 131,216 $ ‐ $ 34,688 $ 21,800 $ 4,500 $ 20,450 $ ‐ $ 26,225 $ 465,000 $ ‐ $ 427 $ 275,000 $ ‐ $ ‐ $ 392,000 $ ‐ $ 38,000 $ 3,900 $ ‐ $ ‐ $ ‐ $ 10,000 $ 1,050,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,983 $ ‐ $ ‐ $ ‐ $ 2,513,462

$ 8,000 $ 15,000 $ ‐ $ 12,000 $ ‐ $ ‐ $ 112,139 $ ‐ $ 35,318 $ 19,200 $ 4,750 $ 22,000 $ 9,010 $ 26,500 $ 500,000 $ ‐ $ 500 $ 249,000 $ ‐ $ ‐ $ 385,000 $ ‐ $ 37,000 $ 3,500 $ ‐ $ ‐ $ ‐ $ 10,000 $ 1,100,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 8,245 $ ‐ $ ‐ $ ‐ $ 2,557,162

3.90% 0.00% ‐ ‐28.46% ‐ ‐ ‐14.54% ‐ ‐4.55% ‐6.91% ‐5.00% 0.00% ‐ 3.21% 7.53% ‐ 17.10% ‐13.24% ‐ ‐ ‐3.75% ‐ ‐7.50% ‐30.00% ‐ ‐ ‐ ‐16.67% ‐8.33% ‐ ‐ ‐ ‐ ‐ ‐ 315.87% ‐ ‐ ‐ ‐5.02%

INTERFUND TRANSFERS 52340 Debt Admi ni strati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 21,276 $ 200,000 $ 221,276

$ ‐ $ 38,298 $ 50,000 $ 88,298

$ ‐ $ 57,446 $ 50,000 $ 107,446

$ ‐ $ 57,446 $ 50,000 $ 107,446

$ ‐ $ 44,145 $ 100,000 $ 144,145

‐ ‐23.15% 100.00% 34.16%

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ 2,492 $ ‐ $ ‐ $ 2,492

$ ‐ $ ‐ $ 15,785 $ 15,785

$ ‐ $ ‐ $ 13,383 $ 13,383

$ ‐ $ ‐ $ 13,000 $ 13,000

$ ‐ $ ‐ $ ‐ $ ‐

SUB‐TOTAL O&M FUND

$ 4,760,675

$ 4,892,615

$ 5,468,611

$ 5,283,001

$ 5,336,615

‐ ‐ ‐100.00% ‐100.00% ‐ ‐2.41%

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐

$ 4,760,675

$ 4,892,615

$ 5,468,611

$ 5,283,001

$ 5,336,615

‐2.41%

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

www.msdbc.org

Operation & Maintenance | Page 72

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Construction Division Organizational Chart Director of SS Construction Mike Stamey, P.E.

Pipeline Replacement Construction & Repair Supervisor Ben Reeves

Construction Crew Leader Randy Norton

Construction Crew Tommie Brooks Eric Gillis Gilbert Garn Jason Price Mike Rice

Tap Installation Construction & Repair Supervisor Keith Gass

Construction Crew Leader Jesse Hunter

Construction Crew Lloyd Anders Jason Brigmon Robert Denny Tim Haney McKinley Hensley

Construction Worker III Randy Mull

Construction Crew Leader Roy Lytle

Construction Crew Leader Shane Meadows

Construction Crew Marcus Bynum Eric Dawson Scott Graham VACANT

Construction Crew Billy Cantrell Dale Dillingham Carl Ellington Marvin Felder

Worker III Clement Crowe

www.msdbc.org

Operation & Maintenance | Page 73

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Construction Division (continued) Mission Statement The mission statement of the System Services Construction Division is to undertake construction and repair activities on the existing MSD Collection Sewer System as “Good Stewards of the Environment” while demonstrating the highest level of customer service and professionalism toward all customers and employees.

Key Responsibilities Include timely, quality, and cost effective connections, repairs, and rehabilitation to the existing MSD Collection Sewer System while protecting the waters of the state and the environment of Buncombe County and the District; working closely with the MSD System Services Maintenance Division in maintaining a properly operating collection system; and being exceptional public servants in all activities and interactions with others.

Accomplishments for FY 2011-2012 1. Rehabilitated over 20,000 LF of pipeline with in‐house crews.

2. Utilized Trenchless Technologies for over 7,600 LF of mainline rehabilitation and 450 LF of service line installation.

3. Cleared over 20,000 LF of sewer line Right‐of‐Way with in‐house crews.

4. Coordinated (5) joint venture projects with the City of Asheville Water Department to facilitate overall cost savings for both agencies.

5. Entered into annual paving contract with the City of Asheville Street Department to expedite economical, efficient repairs and restoration to City streets affected by MSD construction and repair work.

6. MSD’s Flow Motion Tap Team won 1st place overall in the statewide Operations Challenge Event which was held at the Annual NC AWWA State Conference. The win earned the team the right to represent the entire state of North Carolina at the National WEF Conference in 2012.

7. Established new job step and training program for heavy equipment excavator employees.

8. Established a Construction Safety Committee to facilitate discussion, review, and update safety procedures and policies for the Construction Division.

9. Passed surprise OSHA Safety Inspection on October 18, 2011 with no conditions being found that warranted citation.

Budget Highlights/Changes for FY 2012-2013 1. Purchase replacement excavator (track hoe) for the IRS crew.

2. Purchase a new light tower to improve safety for nighttime construction.

3. Purchase a replacement trench box that can be picked up by the track hoe for increased job safety.

Goals & Objectives 

Goal: Operate collection system in compliance with all provisions of State Permit (MSD Goal #1)  Objective: Clear a minimum of 20,000 LF of sewer line easement each year

www.msdbc.org

Operation & Maintenance | Page 74

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Construction Division (continued) Goals & Objectives (continued)  Objective: Rehabilitate 20,000 LF of sewer line with Dig‐and‐Replace, IRS, and other 

Goal:



Goal:



Goal:



Goal:



Goal:

trenchless technology rehabilitation Work with City of Asheville Street and Water Departments for strategic planning with joint projects. (MSD Goal #3‐4)  Objective: Conduct yearly meetings with departments  Objective: Remove service lines from water meter boxes  Objective: Coordinate tap installation to reduce restoration costs  Objective: Establish joint ventures for paving overlays  Objective: Coordination of service line renewals.

Promote a “Safety First” work environment. (MSD Goal #1)  Objective: Continue developing the role and responsibilities of the Construction

Safety Committee to facilitate discussion, review, and updates to safety

procedures and policies for the Construction Division  Objective: Continue working closely with the MSD Safety Division to insure safety

policies and procedures are followed Represent MSD and the entire state of North Carolina in the Operations Challenge (Pipe Tapping) Competition at the Water Environment Federation National Conference in fall of 2012. (MSD Goal #4)  Objective: Achieve the best place possible while maintaining a spirit of competition and

team cooperation Explore various cost savings options for the division. (MSD Goal #3)  Objective: Continue exploring and developing pipe‐bursting, boring, and other

trenchless technology options  Objective: Explore option of creating a Right of Way Crew Maintain a qualified and motivated work force. (MSD Goal #1‐4)  Objective: Establish a cross training schedule for “worker” and “operator” employees  Objective: Begin implementing the newly adopted training program for “excavator”

employees  Objective: Provide opportunities for additional trainings that promote increased knowledge and abilities for all construction staff

Performance Measures Task

1.

2.

3.

4.

5.

6.

7.

8.

9.

Construction Repairs Taps Installed Manhole Repairs Right‐of‐Way Clearing (lineal feet) Other Trenchless Line Rehabilitation (lineal feet) Dig & Replace Rehabilitation (lineal feet) IRS (lineal feet) Construction Rehabilitation (lineal feet) Total Construction Rehabilitation Footage (lineal feet) (Items 6, 7, 8)

www.msdbc.org

09‐10 447 225 461 81,859 0 8,462 12,921 3,616 24,999

10‐11 486 196 404 21,520 0 12,223 5,812 2,458 20,493

11‐12 est.

472 180 472 20,000 1,200 13,000 5,000 2,000 20,000

Operation & Maintenance | Page 75

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY 13 Budget – SS Construction Division

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compensati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

ACTUAL 2009‐2010 SSD

ACTUAL 2010‐2011 SSD

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

$ ‐

$ ‐

$ 1,157,760.22 $ 75,000.29 $ 1,232,760.51

$ 1,157,760 $ 75,000 $ 1,232,760

$ 1,091,173 $ 75,000 $ 1,166,173

‐5.75% 0.00% ‐5.40%

$ ‐

$ 85,837.56 $ 93,880.58 $ 320,681.80 $ 36,537.84 $ ‐ $ ‐ $ 56,576.15 $ 593,513.93

$ 85,838 $ 93,881 $ 320,682 $ 36,538 $ ‐ $ ‐ $ 56,576 $ 593,515

$ 78,600 $ 89,212 $ 314,418 $ 39,016 $ ‐ $ ‐ $ 54,560 $ 575,806

‐8.43% ‐4.97% ‐1.95% 6.78% ‐ ‐ ‐3.56% ‐2.98%

$ 39,480.00

$ 39,480

$ 40,391

2.31%

$ 1,865,754.44

$ 1,865,755

$ 1,782,370

‐4.47%

$ ‐ $ 1,334.44 $ ‐ $ 15,934.30 $ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ 1,334 $ ‐ $ 12,927 $ ‐ $ ‐ $ ‐ $ ‐

$ 500 $ 2,000 $ 29,570 $ ‐ $ ‐ $ 84,997 $ ‐

‐ 49.88% ‐ 85.57% ‐ ‐ ‐ ‐

$ ‐

51325 Post Reti rement Insurance TOTAL SALARIES, WAGES & BENEFITS

$ ‐

$ ‐

MATERIALS, SUPPLIES & SERVICES 52010 Adverti si ng 52050 Dues & Subscri pti ons 52100 Postage 52150 Trai ni ng & Associ ated Expenses 52160 Tui ti on Ass i s tance 52170 Di rector's Fees & Expenses 52180 Insurance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone)

$ 10,230.68

$ 8,325

$ 17,600

72.03%

52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es

$ 19,444.03 $ 3,473.40 $ ‐

$ 18,292 $ 3,473 $ ‐

$ 20,000 $ 3,400 $ ‐

2.86% ‐2.11% ‐

52270 Safety Equi pment/Suppl i es

$ ‐

$ ‐

$ 23,750

‐

52280 Suppl i es/Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Professi onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs. & Ground 52420 Mai ntenance Equi pment 52430 Landscape Restorati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permi ts/Fees/Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l ness Program 52730 Empl oyee Assi stance Program 52900 Other Operati ng Expenses 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ ‐

$ 27,567.64 $ ‐ $ 155.78 $ ‐ $ 2,580.00 $ ‐ $ ‐ $ ‐ $ 5,295.67 $ ‐ $ 24,000.00 $ ‐ $ ‐ $ ‐ $ 8,950.00 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,828.09 $ ‐ $ ‐ $ ‐ $ 120,794.03

$ 24,534 $ ‐ $ 77 $ ‐ $ 2,580 $ ‐ $ ‐ $ ‐ $ 4,322 $ ‐ $ 24,000 $ ‐ $ ‐ $ ‐ $ 8,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,828 $ ‐ $ ‐ $ ‐ $ 110,342

$ 46,000 $ ‐ $ ‐ $ ‐ $ 3,500 $ ‐ $ ‐ $ ‐ $ 11,700 $ ‐ $ 21,500 $ ‐ $ ‐ $ ‐ $ 18,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5,375 $ ‐ $ ‐ $ ‐ $ 287,892

66.86% ‐ ‐100.00% ‐ 35.66% ‐ ‐ ‐ 120.94% ‐ ‐10.42% ‐ ‐ ‐ 101.12% ‐ ‐ ‐ ‐ ‐ ‐ ‐ 194.02% ‐ ‐ ‐ 138.33%

$ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ 153,481 $ ‐ $ 153,481

‐ ‐ ‐ ‐

$ ‐ $ ‐ $ 4,950 $ 4,950

$ 22,000 $ ‐ $ 22,500 $ 44,500

‐ ‐ 354.55% 798.99%

$ 1,981,047

$ 2,268,243

13.90%

INTERFUND TRANSFERS 52340 Debt Admi ni strati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐

$ ‐

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ ‐

$ ‐

$ ‐ $ ‐ $ 4,949.99 $ 4,949.99

SUB‐TOTAL O&M FUND

$ ‐

$ ‐

$ 1,991,498.46

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

www.msdbc.org

$ ‐ $ ‐ $ ‐ $ (1,313,621.00) $ (1,313,621) $ (1,340,555) $ ‐

$ ‐

$ 677,877.46

$ 667,426

$ 927,688

‐ 2.05% 36.85%

Operation & Maintenance | Page 76

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Maintenance Division Organizational Chart Director of SS Maintenance Ken Stines

Technical Services Supervisor Eric Bryant

Emergency TV T.S. Oper. II Furman Dean

Big Flusher T.S. Operator III Shaun Meadows

T.S. Worker II Pete Cole

T.S. Worker II David Hightower

First Responders James Beaver Rick Bates Herman Shelton Grady Brooks

Call Truck T.S. Operator III Jason Norton

Little Flusher T.S. Oper. II Wayne Rice Worker I John Gosnell Locates ULOCO/T.S. Operator I Alan Knighten

Portable Flusher T.S. Worker II Chris Johnson

Rod Truck T.S. Operator I Robert Burnette T.S. Worker II Lee Plemmons

www.msdbc.org

Preventative Maintenance Supervisor Jason Capizzi

Flusher T.S. Oper. II Ray Lunsford T.S. Operator II Shawn Buckner Tanker T.S. Operator I Anthony England

T.S. Operator III Greg Patton TV Van T.S. Oper II Mitch Hawes T.S. Oper II Rick Bradley TV Van T.S. Oper. II Ed Wathen T.S. Operator III Eric Sams

Operation & Maintenance | Page 77

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Maintenance Division (continued) Mission Statement The Mission Statement of the System Services Maintenance Division is to maintain MSD’s Collection System in a way to convey all wastewater to MSD’s Water Reclamation Facility without any stoppages, discharges, or spills of wastewater. In short, our mission is to “Keep it in the Pipe” while maintaining the highest level of customer service both internally and externally, to be continuous “Stewards of the Environment”, and provide exceptional service to the rate payers of MSD.

Key Responsibilities Include preventive maintenance and inspection of over 980 miles of sanitary sewer lines; provide customer services and emergency response 24 hours/day, 365 days/year; maintain compliance with our Collection System Permit; work closely with MSD’s System Services Construction Division in achieving System Services departmental goals.

Accomplishments for FY 2011-2012 1.

2.

3.

4.

5.

Cleaned over 880,000 LF of pipeline with in‐house crews.

CCTV’d over 290,000 LF of sanitary sewer lines.

Mechanically rodded over 100,000 lf of pipeline for root removal.

Achieved one‐hour response time goal during working hours, nights, and weekends.

Cleaned and CCTV’d over 60,000 LF of large interceptor along the Swannanoa and French Broad Rivers.

6. Cleaned and CCTV’d 42,000 LF of recently acquired Avery’s Creek Sewer District.

7. Smoke tested 162,000 LF of sewer line, and identified several areas of inflow and infiltration. This assisted Finance in identifying over thirty homes connected to MSD who were not being billed.

Budget Highlights/Changes for FY 2012-2013 1. Purchase new Push Cameras for the First Responders vehicles.

2. Purchase a 36‐60” Plug for Interceptor Cleaning.

Goals & Objectives 

Goal: Promote safety first. (MSD Goals #1 ‐ 4)  Objective: Training  Personal Protective Equipment  Traffic Control  Confined Space  Vehicle/Equipment Operation  Goal: Reduce number of Sanitary Sewer Overflows. (MSD Goals #1 ‐ 4)  Objective: Increase frequency of CIP Inspections. Inspect CIP projects every two yrs. vs.

three yrs.

www.msdbc.org

Operation & Maintenance | Page 78

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

System Services – Maintenance Division (continued) Goals & Objectives (continued)  Objective: Implementation of CCTV Inspection Management Software (Granite) crew training on software  Establish NASSCO Defect Rating Program in the CCTV trucks  Review and rate existing CCTV video on server  Objective: Identify areas with heavy Inflow and Infiltration  Increase smoke testing  Flow Monitoring Investigation  Objective: Implementation of Work Order Management System (Cityworks)  Installation in field vehicles  Training  Implementation  Objective: Clean 550,000 LF of sanitary sewer lines  Objective: Evaluate/update priorities for increased preventive maintenance areas and

recommendations of areas for rehabilitation  Establish in house pipe rating program  Establish Cityworks work order management program  High Priority/CIP Inspections  CCTV Inspection  Utilization of GIS/Mapping  CCTV Inspection of 300,000 LF sewer pipeline  Goal: Provide excellent customer service internal/external (MSD Goals #1 – 4)  Objective: Maintain on call status 24 hours/day, 7 days/week  Objective: Respond to all customer service requests within one hour  Objective: Cross train to promote positive employee relationships and teamwork  Objective: Maintain great relationship with outside entities and internal divisions

Performance Measures 1.

2.

3.

4.

5.

6.

7.

8.

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) Sanitary Sewer Overflow Totals

www.msdbc.org

09‐10 1,331 0.52 hr 1,068 0.64 hr 997,238 206,821 375,305 35

10‐11 1,347 0.59 hr 1,094 0.63 hr 584,461 71,610 301,314 24

11‐12 est.

1,330 0.56 hr 1,044 0.57 hr 880,000 119,000 291,000 30

Operation & Maintenance | Page 79

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY 13 Budget – SS Maintenance Division ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

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

$ 2,347,728 $ 154,269 $ 2,501,997

$ 1,233,876 $ 75,000 $ 1,308,876

$ 1,233,876 $ 75,000 $ 1,308,876

$ 1,302,803 $ 75,000 $ 1,377,803

5.59% 0.00% 5.27%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compens ati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

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

$ 165,171 $ 181,616 $ 638,480 $ 69,060 $ ‐ $ ‐ $ 96,590 $ 1,150,917

$ 91,359 $ 100,325 $ 332,133 $ 37,842 $ ‐ $ ‐ $ 60,726 $ 622,386

$ 91,359 $ 100,325 $ 332,133 $ 37,842 $ ‐ $ ‐ $ 60,726 $ 622,385

$ 92,864 $ 105,402 $ 349,352 $ 43,351 $ ‐ $ ‐ $ 65,141 $ 656,110

1.65% 5.06% 5.18% 14.56% ‐ ‐ 7.27% 5.42%

51325 Post Reti rement Ins urance

$ 84,360

$ 69,160

$ 40,890

$ 40,890

$ 44,879

9.76%

TOTAL SALARIES, WAGES & BENEFITS

$ 3,501,728

$ 3,722,074

$ 1,972,152

$ 1,972,151

$ 2,078,792

5.41%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subscri pti ons 52100 Postage 52150 Trai ni ng & As soci ated Expenses 52160 Tui ti on As si stance 52170 Di rector's Fees & Expens es 52180 Insurance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone)

$ ‐ $ 3,570 $ ‐ $ 25,274 $ ‐ $ ‐ $ 163,559 $ ‐ $ 27,010

$ 168 $ 5,231 $ ‐ $ 22,510 $ ‐ $ ‐ $ 158,305 $ ‐ $ 25,942

$ 1,000 $ 4,166 $ ‐ $ 17,816 $ ‐ $ ‐ $ 165,195 $ ‐ $ 33,769

$ 400 $ 4,166 $ ‐ $ 17,800 $ ‐ $ ‐ $ 165,195 $ ‐ $ 25,200

$ 500 $ 5,000 $ ‐ $ 23,540 $ ‐ $ ‐ $ 81,849 $ ‐ $ 26,400

‐50.00% 20.03% ‐ 32.13% ‐ ‐ ‐50.45% ‐ ‐21.82%

52240 52250 52260 52270 52280 52290 52300 52330 52350 52400 52410 52420 52430 52440

$ 31,303 $ 6,084 $ ‐ $ ‐ $ 74,825 $ ‐ $ 68,303 $ ‐ $ 143,922 $ ‐ $ ‐ $ 32,750 $ 8,994 $ ‐

$ 32,979 $ 7,015 $ ‐ $ ‐ $ 80,396 $ ‐ $ 61,086 $ ‐ $ 42,229 $ ‐ $ ‐ $ 22,967 $ 10,339 $ ‐

$ 20,556 $ 3,327 $ ‐ $ ‐ $ 48,432 $ ‐ $ 60,544 $ ‐ $ 28,920 $ ‐ $ ‐ $ 53,650 $ 7,704 $ ‐

$ 19,975 $ 3,327 $ ‐ $ ‐ $ 29,500 $ ‐ $ 60,550 $ ‐ $ 28,900 $ ‐ $ ‐ $ 53,775 $ 1,300 $ ‐

$ 20,000 $ 3,400 $ ‐ $ 13,750 $ 30,000 $ ‐ $ 60,700 $ ‐ $ 56,500 $ ‐ $ 1,000 $ 54,000 $ 1,300 $ ‐

‐2.70% 2.21% ‐ ‐ ‐38.06% ‐ 0.26% ‐ 95.37% ‐ ‐ 0.65% ‐83.13% ‐

52450 Equi pment Rental

$ 6,474

$ 22,895

$ ‐

$ 2,225

$ 2,500

‐

52460 Motor Fuel & Lubri cants

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

Uni forms Offi ce Suppl i es Speci al Departmental Suppl i es Safety Equi pment/Suppl i es Suppl i es/Smal l Tool s Chemi cal s Li ne Cl eani ng & Suppl i es Legal Fees Profes s i onal /Contractual Servi ces Repai rs ‐ Offi ce Equi pment Mai ntenance ‐ Bl dgs. & Ground Mai ntenance Equi pment Lands cape Restorati on Pump Mai ntenance

52470 Outs i de Vehi cl e Mai ntenance

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52500 Rents & Leases

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52510 Permi ts /Fees/Software Li censes

$ 51,516

$ 67,511

$ 66,050

$ 9,555

$ 20,800

‐68.51%

52650 Uti l i ti es

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52690 Frei ght

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52715 Safety Incenti ve Program

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52720 Heal th Fai r

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

‐

52725 52730 52900 52910 52915

$ ‐ $ ‐ $ ‐ $ 14,256 $ ‐

$ ‐ $ ‐ $ ‐ $ 10,491 $ ‐

$ ‐ $ ‐ $ ‐ $ 6,372 $ ‐

$ ‐ $ ‐ $ ‐ $ 6,372 $ ‐

$ ‐ $ ‐ $ ‐ $ 5,175 $ ‐

‐ ‐ ‐ ‐18.78% ‐

52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐

TOTAL MATERIALS, SUPPLIES & SERVICES

$ 657,839

$ 570,062

$ 517,501

$ 428,240

$ 406,414

‐21.47%

INTERFUND TRANSFERS 52340 Debt Admi ni s trati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 63,830 $ ‐ $ 63,830

$ ‐ $ 134,043 $ ‐ $ 134,043

$ ‐ $ 201,067 $ ‐ $ 201,067

$ ‐ $ 201,067 $ ‐ $ 201,067

$ ‐ $ 176,348 $ ‐ $ 176,348

‐ ‐12.29% ‐ ‐12.29%

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ 59,378 $ ‐ $ 23,602 $ 82,979

$ 74,450 $ ‐ $ 21,469 $ 95,920

$ 11,350 $ ‐ $ 10,050 $ 21,400

$ 11,350 $ ‐ $ 10,050 $ 21,400

$ 23,950 $ ‐ $ 1,400 $ 25,350

111.01% ‐ ‐86.07% 18.46%

SUB‐TOTAL O&M FUND

$ 4,306,377

$ 4,522,099

$ 2,712,120

$ 2,622,858

$ 2,686,904

‐0.93%

$ ‐ $ (1,203,737)

$ ‐ $ (1,209,710)

$ ‐ $ ‐

$ ‐ $ ‐

$ ‐ $ ‐

‐ ‐ ‐

$ 3,102,640

$ 3,312,389

$ 2,712,120

$ 2,622,858

$ 2,686,904

‐0.93%

Wel l nes s Program Empl oyee Ass i s tance Program Other Operati ng Expenses Non‐Capi tal Equi pment Copi ers , Pri nters & Faxes

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

www.msdbc.org

Operation & Maintenance | Page 80

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

System Coordinator III Kay Farlow Cecelia Cardascio

Private Development Coordinator (Plan Review) Kevin Johnson

Private Development Inspector Dan Cook

Private Development Project Manager David Monteith

www.msdbc.org

Operation & Maintenance | Page 81

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Planning & Development (continued) 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 2011- 2012 1. Assisted System Services with public outreach and education and provided training on Web Based GIS to Board of Realtors.

2. Provided staff and field resources to Finance identifying non‐paying customers.

3. Participated in selection of work management software.

4. Maintained One Stop at Buncombe County Building Permits Office by staffing a satellite office.

Budget Highlights/Changes for FY 2012-2013 1. Continue cross training of positions to improve customer service and departmental efficiency with reduced staffing level.

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.  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. www.msdbc.org

Operation & Maintenance | Page 82

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Planning & Development (continued) Goals & Objectives (continued) 

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 Task 1.

2.

3.

4.

5.

6.

7.

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

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

10‐11 72 72 925 925 37 $784,005 $34.78

11‐12 est.

78 78 876 876 33 $1,997,550 $84.27

www.msdbc.org

Operation & Maintenance | Page 83

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Planning & Development ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

$ 411,822 $ 465,116 $ ‐ $ 333 $ 411,822 $ 465,448

$ 483,395 $ 483,395 $ 374,772 $ 3,500 $ 3,500 $ 3,500 $ 486,895 $ 486,895 $ 378,272

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compens ati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ 20,143 $ 30,030 $ 81,008 $ 10,336 $ ‐ $ ‐ $ 18,630 $ 160,147

$ 28,502 $ 33,414 $ 89,359 $ 9,692 $ ‐ $ ‐ $ 19,148 $ 180,116

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

$ 33,985 $ 25,496 $ 37,247 $ 28,938 $ 91,623 $ 69,871 $ 10,439 $ 8,670 $ ‐ $ ‐ $ ‐ $ ‐ $ 23,899 $ 18,739 $ 197,193 $ 151,714

INC (DEC) OVER PRIOR YEAR BUDGET

‐22.47% 0.00% ‐22.31%

‐24.98% ‐22.31% ‐23.74% ‐16.95% ‐ ‐100.00% ‐21.59% ‐23.53%

51325 Pos t Reti rement Insurance

$ 11,840

$ 9,706

$ 11,280

$ 11,280

$ 8,976

‐20.43%

TOTAL SALARIES, WAGES & BENEFITS

$ 583,809

$ 655,271

$ 696,568

$ 695,368

$ 538,962

‐22.63%

$ ‐ $ 935 $ ‐ $ 5,649 $ ‐ $ ‐ $ 16,978 $ ‐ $ 2,593 $ 995 $ 1,538 $ 361 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 29,049

$ ‐ $ 803 $ ‐ $ 6,226 $ ‐ $ ‐ $ 16,433 $ 1,902 $ 1,319 $ 861 $ 1,865 $ 491 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 375 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 30,274

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

$ ‐ $ 1,300 $ ‐ $ 5,800 $ ‐ $ ‐ $ 17,148 $ 1,800 $ 2,000 $ 1,400 $ 1,800 $ 500 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,000 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 33,748

$ ‐ $ 1,300 $ ‐ $ 5,800 $ ‐ $ ‐ $ 17,319 $ 2,000 $ 2,000 $ 1,400 $ 1,800 $ 500 $ 50 $ ‐ $ ‐ $ ‐ $ 1,000 $ 1,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 34,169

‐ 0.00% ‐ ‐17.14% ‐ ‐ 1.00% 11.11% 0.00% ‐22.22% ‐14.29% 0.00% ‐ ‐ ‐ ‐ 0.00% 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐4.15%

INTERFUND TRANSFERS 52340 Debt Admi ni s trati on Expenses 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ ‐ $ 1,064 $ ‐ $ 1,064

$ ‐ $ 2,127 $ ‐ $ 2,127

$ ‐ $ 3,191 $ ‐ $ 3,191

$ ‐ $ 3,191 $ ‐ $ 3,191

$ ‐ $ 2,813 $ ‐ $ 2,813

‐ ‐11.85% ‐ ‐11.85%

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 613,922

$ 687,672

$ 735,407

$ 732,307

$ 575,944

‐21.68%

MATERIALS, SUPPLIES & SERVICES 52010 Adverti s i ng 52050 Dues & Subscri pti ons 52100 Pos tage 52150 Trai ni ng & As soci ated Expenses 52160 Tui ti on Ass i s tance 52170 Di rector's Fees & Expenses 52180 Ins urance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone) 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es /Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Profes si onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs. & Ground 52420 Mai ntenance Equi pment 52430 Lands cape Restorati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outsi de Vehi cl e Mai ntenance 52500 Rents & Leases 52510 Permi ts/Fees /Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l nes s Program 52730 Empl oyee Ass i stance Program 52900 Other Operati ng Expens es 52910 Non‐Capi tal Equi pment 52915 Copi ers, Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

www.msdbc.org

$ (418,500) $ (484,499) $ (518,327) $ (518,327) $ (362,648) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 195,422

$ 203,172

$ 217,080

$ 213,980

$ 213,296

‐30.03% ‐ ‐1.74%

Operation & Maintenance | Page 84

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program Organizational Chart Director of Capital Improvement Ed Bradford, P.E.

Engineering Office Manager Sharon Walk

Design & Drafting Manager Dave Nisbeth

GIS Manager Kathryn Brewer

Engineering Tech III Brian Pearce Darin Prosser

GIS Analyst VACANT

GIS Technician I Daniel Marsh Technical Services Data Manager Larry Williams

www.msdbc.org

Right of Way Manager Angel Banks

Right of Way Admin. Assistant Pam Nolan

Right of Way Agent Wesley Banner

Construction Manager Mike Schraven

Engineer III Roger Watson, P.E.

Engineer II Hunter Carson, P.E.

Engineer I Shaun Armistead, P.E.

Construction Admin. Assistant Denise Moore

Construction Inspector III Mike Presley Construction Inspector II Kevin Devlin Thomas Brown

Operation & Maintenance | Page 85

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program (continued) 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) for use as an effective technical resource for both District staff and the Public.

Accomplishments for FY 2011-2012 1. 49,099 Linear Feet (LF) of collection system were rehabilitated during FY11. This included 28,606 LF rehabilitated through contract construction and 20,493LF rehabilitated in‐house by System Services.

2. Acquired Rights‐of‐Way over 49 properties. Settled nine condemnation actions, saving expense of trial. (*) 3. Designed 11 unscheduled in‐house projects for System Services. These are both designed and constructed by in–house forces. (*) 4. Managed (with plant staff and consultant) a significant project for the replacement of the Final Microscreens at the plant. The Final Microscreen project is expected to be complete by Fall 2012. (*) 5. Managed over 104 projects and line items within the CIP. Projects are within the various stages of lifecycles ‐ from preliminary design, to active construction, to complete/closeout.

6. Managed (with SSD, MIS and Consultant) two enterprise technology software implementation projects. Granite XP is set to complete in June of 2012 and the SSD phase of Cityworks will be complete in November 2012.

7. Mapped 35 as‐builts from CIP, P&D, and In‐House Projects. In response to SSD fieldwork, mapped 231 field edits, mapped 314 taps, and processed 1,121 videos. Answered 464 inquiries about sewer locations.

Budget Highlights/Changes for FY 2012-2013 1. Complete 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. ($10.7 Million, Three fiscal Years) 3. Complete the first phase of implementation of MSD's new asset management system (Cityworks) and CCTV software (Granite). www.msdbc.org

Operation & Maintenance | Page 86

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program (continued) Goals & Objectives    

 

Goal:

Goal: Goal: Goal:

Goal:

Goal:

Rehabilitate approximately 47,000 feet of the collection system, in close collaboration with System Services. (MSD Objective #1) Complete Final Microscreen project.

Meet the time and budget predictions established in the CIP for FY13. (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

09‐10 45,450 $9.7M 52%

10‐11 11‐12 est.

49,099 43,943 $16.1M $18.9M 79% 96%

(*) Estimated as of 5/10/12. Expenditures/percentages for FY11‐12 include Contingency/Reimbursements.

www.msdbc.org

Operation & Maintenance | Page 87

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

FY13 Budget – Capital Improvement Program

SALARIES & WAGES 51100 Sal ari es & Wages 51150 Overti me TOTAL SALARIES & WAGES

ACTUAL 2009‐2010

ACTUAL 2010‐2011

APPROVED 2011‐2012 BUDGET

ESTIMATED ACTUAL 6/30/2012

PROPOSED 2012‐2013 BUDGET

INC (DEC) OVER PRIOR YEAR BUDGET

$ 1,098,838 $ 782 $ 1,099,620

$ 1,106,682 $ 4,849 $ 1,111,531

$ 1,161,911 $ 9,000 $ 1,170,911

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

$ 1,217,289 $ 9,000 $ 1,226,289

4.77% 0.00% 4.73%

$ 53,438 $ 82,205 $ 202,520 $ 25,840

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

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

$ 82,652 $ 93,811 $ 232,901 $ 28,900 $ ‐ $ ‐ $ 59,366 $ 497,630

2.19% 5.83% 1.68% 10.73% ‐ ‐ 4.67% 3.37%

$ 28,200

$ 28,200

$ 29,920

6.10%

$ 1,680,510

$ 1,668,368

$ 1,753,839

4.36%

$ ‐ $ 5,675 $ ‐ $ 28,896 $ ‐ $ ‐ $ 36,879 $ ‐ $ 7,500 $ 4,550 $ 6,800 $ 7,200 $ ‐ $ ‐ $ ‐ $ ‐ $ 4,000 $ 69,500 $ ‐ $ ‐ $ 2,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 330 $ ‐ $ ‐ $ ‐ $ 205,230

$ ‐ $ 5,050 $ ‐ $ 19,352 $ ‐ $ ‐ $ 36,879 $ ‐ $ 5,838 $ 2,850 $ 4,700 $ 5,162 $ ‐ $ ‐ $ ‐ $ ‐ $ 3,500 $ 62,950 $ ‐ $ ‐ $ 2,225 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 9,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 330 $ ‐ $ ‐ $ ‐ $ 158,086

$ ‐ $ 5,755 $ ‐ $ 31,250 $ ‐ $ ‐ $ 37,249 $ ‐ $ 5,500 $ 4,300 $ 7,100 $ 6,750 $ 300 $ ‐ $ ‐ $ ‐ $ 4,000 $ 64,250 $ ‐ $ ‐ $ 2,650 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,250 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 350 $ ‐ $ ‐ $ ‐ $ 200,704

‐ 1.41% ‐ 8.15% ‐ ‐ 1.00% ‐ ‐26.67% ‐5.49% 4.41% ‐6.25% ‐ ‐ ‐ ‐ 0.00% ‐7.55% ‐ ‐ 0.00% ‐ ‐ ‐ ‐ ‐ ‐ 0.00% ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6.06% ‐ ‐ ‐ ‐2.21%

BENEFITS 51200 NC Reti rement 51250 Payrol l Taxes 51300 Group Medi cal , Dental & Li fe 51350 Worker's Compens ati on 51360 State Unempl oyment Benefi ts 51450 Automobi l e Al l owance 51500 401(k) SUB‐TOTAL BENEFITS

$ ‐ $ 42,453 $ 406,455

51325 Pos t Reti rement Ins urance

$ 29,600

TOTAL SALARIES, WAGES & BENEFITS

$ 1,535,675

MATERIALS, SUPPLIES & SERVICES 52010 Adverti si ng 52050 Dues & Subscri pti ons 52100 Pos tage 52150 Trai ni ng & As s oci ated Expens es 52160 Tui ti on As si stance 52170 Di rector's Fees & Expenses 52180 Ins urance 52200 Tel ephone & Tel efax 52210 Communi cati ons (other than tel ephone 52240 Uni forms 52250 Offi ce Suppl i es 52260 Speci al Departmental Suppl i es 52270 Safety Equi pment/Suppl i es 52280 Suppl i es /Smal l Tool s 52290 Chemi cal s 52300 Li ne Cl eani ng & Suppl i es 52330 Legal Fees 52350 Profess i onal /Contractual Servi ces 52400 Repai rs ‐ Offi ce Equi pment 52410 Mai ntenance ‐ Bl dgs . & Ground 52420 Mai ntenance Equi pment 52430 Lands cape Res torati on 52440 Pump Mai ntenance 52450 Equi pment Rental 52460 Motor Fuel & Lubri cants 52470 Outs i de Vehi cl e Mai ntenance 52500 Rents & Leas es 52510 Permi ts /Fees/Software Li censes 52650 Uti l i ti es 52690 Frei ght 52715 Safety Incenti ve Program 52720 Heal th Fai r 52725 Wel l ness Program 52730 Empl oyee Ass i s tance Program 52900 Other Operati ng Expens es 52910 Non‐Capi tal Equi pment 52915 Copi ers , Pri nters & Faxes 52920 Bi l l i ng & Col l ecti ons 52990 Conti ngency TOTAL MATERIALS, SUPPLIES & SERVICES

$ ‐ $ 3,774 $ ‐ $ 17,443 $ ‐ $ ‐ $ 36,514 $ ‐ $ 4,100 $ 1,789 $ 6,086 $ 5,997 $ ‐ $ ‐ $ ‐ $ ‐ $ 366 $ 77,094 $ 7 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 285 $ ‐ $ ‐ $ ‐ $ 184,455

$ 73,526 $ 82,648 $ 223,148 $ 24,232 $ ‐ $ ‐ $ 45,209 $ 448,764 $ ‐ $ 24,266 $ ‐ $ 1,584,561 $ ‐ $ ‐ $ ‐ $ 4,548 $ ‐ $ 21,514 $ ‐ $ ‐ $ 35,341 $ ‐ $ 3,532 $ 2,519 $ 7,916 $ 2,610 $ ‐ $ ‐ $ ‐ $ ‐ $ 40 $ 63,862 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 31,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 172,883

INTERFUND TRANSFERS 52340 Debt Admi ni s trati on Expens es 53040 Fl eet Equi pment Repl acement Fund 53050 WWTP Repl acement Fund TOTAL INTERFUND TRANSFERS

$ 479,154 $ 3,192 $ ‐ $ 482,346

$ 433,432 $ 6,383 $ ‐ $ 439,815

$ 412,923 $ 9,574 $ ‐ $ 422,497

$ 412,923 $ 9,574 $ ‐ $ 422,497

$ 430,287 $ 11,092 $ ‐ $ 441,379

4.21% 15.86% ‐ 4.47%

54010 Capi tal Equi pment ‐ NEW 54020 Capi tal Equi pment ‐ Software 54030 Capi tal Equi pment ‐ Repl acement TOTAL CAPITAL EQUIPMENT

$ 12,149 $ 1,255 $ ‐ $ 13,404

$ 19,754 $ 998 $ 7,846 $ 28,598

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

$ ‐ $ ‐ $ ‐ $ ‐

‐ ‐ ‐ ‐

SUB‐TOTAL O&M FUND

$ 2,215,880

$ 2,225,857

$ 2,308,237

$ 2,248,951

$ 2,395,922

3.80%

$ (2,138,975) $ ‐

$ (2,150,952) $ ‐

$ (2,225,846) $ ‐

$ (2,214,456) $ ‐

$ (2,300,558) $ ‐

3.36% ‐

$ 76,906

$ 74,905

$ 82,391

$ 34,495

$ 95,364

15.75%

59200 LESS: Chargebacks to General Fund for CIP Chargebacks to General Fund for SSD NET OPERATION & MAINTENANCE FUND

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Operation & Maintenance | Page 88

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Insurance Funds

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 FY13 includes employer contributions increase of 1.0% 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. FY13 funding of $222,900 represents 1.5% of total operations. As of May 2012, the District has four (4) eligible participants in it post‐employment insurance plan.



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 FY13 does include an increase in employer contributions to cover anticipated future expenditure needs.

www.msdbc.org

Insurance Funds | Page 89

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Insurance Funds (continued) 

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 FY13 does include an increase in employer contributions to cover anticipated expenditure needs.

FY13 SELF‐FUNDED EMPLOYEE MEDICAL PROGRAM BUDGET

Beginning Balance Income: District Contributions Employee Contributions Transfer from Other Insurance Funds Interest Total Income

Actual 2010‐2011 $

639,990 1,598,079 350,016 163,730 4,660 2,116,485

Estimated Actual 2011‐2012 $

641,105 $

1,717,935 412,353 300,000 5,453 2,435,741

Budget 2012‐2013 895,312 1,735,116 413,000 ‐ 4,000 2,152,116

Total Funds Available

2,756,475

3,076,846

3,047,428

Expenses: Expected Claim Liability Fixed Costs (see note below) Total Expenses

1,622,069 493,301 2,115,370

1,617,403 564,131 2,181,534

1,879,249 372,469 2,251,718

Ending Balance Note: Fixed Costs Aggregate & Stop Loss Premiums/TPA Life Insurance COBRA Administration Fee Total Fixed Expenses

www.msdbc.org

$

641,105 464,735 28,566 ‐ 493,301

$

895,312 $

795,710

535,599 28,532 ‐ 564,131

343,669 28,800 ‐ 372,469

Insurance Funds | Page 90

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Insurance Funds (continued) FY13 POST‐EMPLOYMENT INSURANCE BUDGET

Beginning Balance

Actual 2010‐2011 $

Income District Contributions Employee Contributions Interest Income Total Income

232,000 7,340 6,780 246,120

Total Funds Available Expenses Transfer to Other Insurance Funds Total Expenses Ending Balance

14,423

Estimated Actual 2011‐2012 $

260,543

182,000 50,000 232,000

$

28,543

$

Budget 2012‐2013

28,543 $

211,500 12,432 5,199 229,131

46,174 222,900 ‐ 4,000 226,900

257,674

273,074

211,500 ‐ 211,500

222,900 ‐ 222,900

46,174 $

50,174

FY13 WORKER’S COMPENSATION FINANCIAL PLAN

Beginning Balance Income District Contributions Interest Income Total Income

Actual 2010‐2011 $

286,480

181,738 2,432 184,170

Estimated Actual 2011‐2012 $

Budget 2012‐2013

253,819 $

302,644

195,738 1,200 196,938

215,312 1,000 216,312

Total Funds Available

470,650

450,757

518,956

Expenses Interfund Transfer Deductibles for Individual Claims Premiums to commercial carrier Total Expenses

74,730 10,951 131,150 216,831

‐ 10,500 137,613 148,113

‐ 15,000 170,500 185,500

Ending Balance

www.msdbc.org

$

253,819

$

302,644 $

333,456

Insurance Funds | Page 91

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Insurance Funds (continued) FY13 GENERAL LIABILITY FINANCIAL PLAN

Actual 2010‐2011

Beginning Balance Income District Contributions Interest Income Total Income

Estimated Actual 2011‐2012

$ 306,727

Total Funds Available

574,439 1,778 576,217

$ 372,911

882,944

599,439 1,050 600,489

973,400

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

411,759 17,375 74,522 6,377 510,033

418,250 52,000 89,100 6,909 566,259

Ending Balance

$

$

372,911

Budget 2012‐2013 $ 407,141 605,434 1,000 606,434 1,013,575

438,250

55,000

91,000 7,500

591,750

407,141 $

421,825

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Insurance Funds | Page 92

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Replacement Funds

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 FY12 is anticipated to approximate $397,518. The FY13 contribution is $400,000, with anticipated expenditures of $454,000, including a ¾ Ton Utility Bed Truck, ¾ Ton Pickup, ½ Ton Pickup, Small Cargo Van, Tandem Axle Dump Truck, Trench Roller, Mid‐size Excavator, and Hose Burst Protection.

 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 are employed. The FY13 contribution is $100,000 with anticipated expenditures of $200,000 including RBC Bearing Replacements, Emergency Generator Replacement @ Clayton Rd PS, Hydraulic System Overhaul @ Carrier Bridge PS, Grinder Replacement @ Pearson Bridge Siphon Station Grinder, Grinder Replacement @ Square D Siphon Station, Grinder Replacement @ TC Building, Grit System Classifier Rehabilitation (auger/trough/liner), and Breaker Testing/Replacement ‐ Fast Fuses Replacements.

 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.

www.msdbc.org

Replacement Funds | Page 93

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Replacement Funds (continued) FY13 FLEET EQUIPMENT REPLACEMENT FUND BUDGET

Actual 2010‐2011

Description

Beginning Balance:

Revenue: District Contributions Sale of Surplus Property Interest Income Total Revenue

Expenditures: Various ¾ Ton Utility Bed Truck ¾ Ton Pickup ½ Ton Pickup Small Cargo Van Tandem Axle Dump Truck Trench Roller Mid‐Size Excavator Hose Burst Protection Total Expenditure Replacements

Ending Balance:

$

Projected 2011‐2012

696,209 $

200,000 69,676 5,585 275,261

381,528

‐ 381,528

$

589,942 $

Budget 2012‐2013

589,942 $

300,000 71,782 4,140 375,992

568,346

‐ 568,346

397,518

$

397,518

400,000 46,680 2,981 449,461

40,000 35,000 27,000 22,000 125,000 35,000 105,000 65,000 454,000 393,179

www.msdbc.org

Replacement Funds | Page 94

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Replacement Funds (continued) FY13 WASTEWATER TREATMENT PLANT REPLACEMENT FUND BUDGET

Actual 2010‐2011

Description

Beginning Balance:

Revenue: District Contributions Interest Income Total Revenue

Expenditures: Various RBC Bearing Replacements Hydraulic System Overhaul @ Carrier Bridge PS Emergency Generator @ Clayton Rd PS Grit System Classifier Rehabilitation Breaker Testing/Replacement ‐ Fast Fuses Grinder Replacement @ TC Building Total Expenditure Replacements

Projected 2011‐2012

$

879,072 $

50,000 8,481 58,481

174,576

Ending Balance:

‐ 174,576

$

762,977 $

Budget 2012‐2013

762,977 $

50,000 4,500 55,500

200,000

‐ 200,000

617,477 $

617,477

100,000 4,000 104,000

60,000 25,000 35,000 30,000 40,000 10,000 200,000 521,477

FY13 CAPITAL RESERVE FUND

Actual 2010‐2011

Description

Beginning Balance:

Revenue: Interfund Transfer Interest Income Total Revenue

Ending Balance:

Projected 2011‐2012

$

812,454 $

‐ 12,368 12,368

$

824,822 $

824,822 $

80,000 10,000 91,250

914,822 $

Budget 2012‐2013 914,822

‐ 10,000 10,000 924,822

NOTE: Ending balance must be at least 6% of the annual O&M current expenses. FY 2012‐2013 O&M Budget ($14,715,534 ‐ $500,000 transfer to reserves ‐ $132,850 capital equipment) x 6% = $844,961

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METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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Replacement Funds | Page 96

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CIP Program

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

In accordance with the State Collection System Permit, the District maintains a Ten Year CIP and rehabilitates a minimum of 250,000 Linear Feet (LF) of the collection system every five years. The current permit cycle has been temporarily extended three years by SB831, An Act to Extend Certain Government Approvals. This will have the effect of requiring 400,000 LF of rehabilitation over eight years. Planned rehabilitation footage for FY08 through FY15 (the eight‐year permit period) currently targets 402,956 LF. Significant plant projects include replacement of the Final Microscreens, and rehabilitation of the plants' aged power supply system. These two projects total $13.0 million.

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 100 infrastructure projects are included in the CIP for FY 13, ranging in length from 273 feet to over 13,000 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. www.msdbc.org

Capital Improvement Program | Page 97

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program (continued) Collection System. Significant collection system projects scheduled for the upcoming year include: PRP Lining Contract #7, a 10,000 linear foot $902,000 endeavor; a 3,625 linear foot general sewer rehabilitation of Short Coxe at Southside at a cost of $1,180,000; a 3,702 linear foot general sewer rehabilitation at Givens Estates at a cost of $818,600, and a 2,527 linear foot general sewer rehabilitation Merrimon Avenue at Stratford at a cost of $637,100.

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 FY13. 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 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 www.msdbc.org

Capital Improvement Program | Page 98

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program (continued) 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.

In 2008, McGill Associates completed a Collection System Master Plan (the “2008 Collection System Plan”).

The 2008 Collection System Plan focuses on the District’s comprehensive growth issues by incorporating all of the recent planning and zoning changes from the District’s member agencies. This plan also describes where and how areas will be served and provides for orderly growth of the sewer system to meet the needs of the region as a whole for the future. The 2001 Master Plan, the 2007 Facilities Plan and the 2008 Collection System plan are sometimes collectively referred to as the “Master Plans”. www.msdbc.org

Capital Improvement Program | Page 99

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Capitaal Imprrovemeent Proogram (ccontinued) Types off Projectss The projectss in the CIP aare classified into several ttypes, based on the objecctive of the project. The projects are determined and sche eduled based on the Maste er Plan, the ppipe‐rating score, and otheer factors imp pacting the overall w well‐being of the District.

The Interceptor and We et Weather Rehabilitation R projects adddress the third prong of tthe Master P Plan by providing in ncreased system conveyan nce. The Gen neral Sewer R Rehabilitation n projects com mbine the firrst and second pron ngs by surveyying all lines tto plan mainttenance activvities and to improve the sstructural con ndition of the syste em. The Privaate Sewer Rehabilitation p projects havee the same ob bjectives as tthe General b but are separately presented p to o address environmental concerns ressulting from sewers thatt were not p publicly maintained at the time the District was formed. A limited aamount of fu unding is bud dgeted annually to address the problem locaations on a “w worst first” baasis as identiffied.

The District’’s Water Recllamation Faciility (WRF) haas a permittedd capacity to treat up to 4 40 million gallons of wastewaterr a day, and u uses roughly h half of this caapacity. In acccordance with the Masterr Plan’s twentty year planning pe eriod, there are a no plans to replace or o expand thee plant in the near future. However, Water Reclamation n Facility & pump p station improvemen nts are includded in the CIP to maintain these faciliities at their optimu um level and to replace eq quipment that has exceedeed its maintenance level.

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Capital Im mprovementt Program | P Page 100

$ 2,751,600

$ 20,000

$ 2,257,400

FY 13‐14 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

$ ‐

$ 134,100

$ 25,000

$ ‐

$ 2,562,600

$ 28,768

$ 750

$ 2,167,670

$ 19,700

$ ‐

$ ‐

$ 3,963,712

$ 10,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 221,400

$ 2,000

$ 17,500

$ ‐

$ 201,900

$ ‐

$ ‐

$ 1,549,000

$ ‐

$ 1,549,000

$ ‐

$ ‐

$ ‐

$ ‐

$ 220,400

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

West French Broad M.P. Int. $ 335,100 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 LF 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.

2012‐2013 BUDGET DOCUMENT

FY 15‐16 BUDGET

INTERCEPTOR AND WET WEATHER REHABILITATION Christian Creek Int. This project includes the replacement of approximately 13,045 LF of existing 8" and 18" sewer pipe. The portion to be replaced runs from US Hwy 70 at Rowland Road. in Swannanoa, west to Porters Cove Road at I‐40. The line is undersized and has experienced multiple SSO's.

Dingle Creek Interceptor 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. Lower Smith Mill Creek Int. 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.

Middle Beaverdam Creek @ I‐26 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 1,915 LF of 30”, 126 LF of 18”, 1,424 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 This project is located in the Biltmore Estate along the French Broad river near Pony Road. It consists of lining approximately 5,000 LF of broken and/or cracked existing sewer pipe. The lining will reduce I&I issues, made worse by the nearby river.

Capital Improvement Program | Page 101

FY 14‐15 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

INTERCEPTOR AND WET WEATHER REHABILITATION $ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 871,000

$ 418,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 418,000

$ 551,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 551,000

$ 616,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 616,000

$ 2,136,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 2,136,000

SUBTOTAL

$ 15,670,212

$ 281,168

$ 1,567,250

$ 2,301,770

$ 246,600

$ ‐

$ 7,154,600

Inflation per ENR Const. Cost Index SUBTOTAL with inflation

1.0000

1.0000

1.0365

1.0743

1.1135

1.1542

6.434

$ 15,670,212

$ 281,168

$ 1,624,455

$ 2,472,866

$ 274,600

$ ‐

$ 9,114,665

Beale Road at Copney Lane $ 859,000 This project is located in South Asheville and is between Glen Bridge Road and Ducker Road near Copney Lane. It is comprised of 2,070 LF of 12” DIP and 1,430 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.

$ 29,200

$ 96,000

$ ‐

$ 1,200

$ 706,700

$ 10,100

GENERAL SEWER REHABILITATION

2012‐2013 BUDGET DOCUMENT

$ 871,000

Capital Improvement Program | Page 102

Beaverdam Creek WW (CDM #10) 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" through 12" DIP. Biltmore WW (CDM #3) 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" DIP. Four Mile Creek WW (CDM #1) 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" DIP. Haw Creek WW (CDM #6) 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" DIP. South Swannanoa WW (CDM #4) 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" through 42" DIP.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

$ ‐

$ ‐

$ ‐

$ ‐

$ 87,800

$ 735,375

$ ‐

$ 648,500

$ ‐

$ ‐

$ ‐

$ ‐

$ 610,100

$ 74,500

$ 524,300

$ ‐

$ ‐

$ ‐

$ ‐

$ 181,500

$ ‐

$ 56,000

$ 6,000

$ 112,200

$ ‐

$ ‐

$ 49,500

$ 4,800

$ ‐

$ ‐

$ 40,300

$ ‐

$ ‐

$ 142,400

$ 8,000

$ ‐

$ 104,900

$ ‐

$ ‐

$ ‐

$ 453,400

$ 8,500

$ 80,900

$ 5,500

$ 345,900

$ ‐

$ ‐

FY 15‐16 BUDGET

FY 16‐17 BUDGET

2012‐2013 BUDGET DOCUMENT

$ 2,800

FY 14‐15 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

$ 90,600

FY 13‐14 BUDGET

GENERAL SEWER REHABILITATION Bear Creek Road at School Road This project is located in W. Asheville and is comprised of 450 LF of 8" ductile iron pipe. The existing line is aging 8" clay, which has multiple fractures, bellies, misaligned joints and root intrusion.

Bradley Branch Road 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 2,563 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 This project is located in the Oakley Community of Asheville and consists of approximately 2,685 LF of 8" 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 St. at Bordeau Place 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.

Campus Drive @ UNCA This project is located in Asheville on the UNCA campus and is comprised of 400 LF of 8" DIP. The existing sewer line is aging 8" 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.

Central Avenue This project is located in Weaverville and is comprised of 1,750 LF of 8" DIP. The existing sewer line is undersized clay with repeated maintenance issues.

Cherokee Road 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 2,238 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 | Page 103

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

FY 17‐18 thru FY 21‐22 BUDGET

TOTAL ESTIMATED COST

FY 15‐16 BUDGET

$ 119,450

$ 17,200

$ 4,000

$ 250

$ 98,000

$ ‐

$ ‐

$ 149,900

$ ‐

$ ‐

$ ‐

$ 133,900

$ ‐

$ ‐

$ 304,000

$ 10,500

$ 1,500

$ 4,000

$ ‐

$ 288,000

$ ‐

$ 589,800

$ ‐

$ 108,500

$ 13,000

$ 450,300

$ ‐

$ ‐

$ 33,900

$ 28,700

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 773,500

$ ‐

$ 160,500

$ 23,000

$ ‐

$ 580,000

$ ‐

$ 11,700

$ ‐

$ ‐

$ 63,600

$ ‐

$ ‐

$ 10,400

$ 14,250

$ 45,500

$ ‐

$ 281,100

$ 4,500

FY 16‐17 BUDGET

Dellwood Avenue This project is located in the Grovemont Section of Black Mountain. It is comprised of approximately 547 LF of 8" DIP. The existing sewer line is undersized and in very poor condition.

Dilling Avenue This project is located in Black Mountain and is comprised of 700 LF of 8" DIP. The existing sewer line is 4" clay with repeated maintenance issues.

East State Street @ West St. This project will replace an existing sewer main in East State Street (US 70) in Black Mountain between West Street and Padgettown Road. The existing line is 6" and 8" vitrified clay pipe and is in poor condition and will be replaced with a new 8" ductile iron pipe main.

Elk Mountain Place This project is located south of Elk Mountain Road between I‐26 and the French Broad river. It is comprised of approximately 2,110 LF of 8" DIP. The existing sewer is in poor condition and has experienced SSOs. Elk Mtn. Scenic Hwy @ Edgedale Dr. (SS) 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 LF of new 8" DIP main.

Elkwood Avenue This project is located in Woodfin, east of I‐26 along Elkwood Avenue and Old Burnsville Hill Road. It consists of replacement of approximately 5,105 LF of 8" ductile iron pipe. The existing line has offset joints, fractures, root intrusion, multiple point repairs, and is the source of frequent problems.

Emory Road $ 76,900 This project is located in Asheville and is comprised of 300 LF of 8" DIP. The existing sewer line is 6" orangeburg with repeated maintenance issues.

Fair Oaks Rd @ Green Road $ 355,750 This project is located in South Asheville just north of Sweeten Creek Road. It is comprised of approximately 2,478 LF of 8" DIP. The existing sewer line is undersized and in very poor condition.

2012‐2013 BUDGET DOCUMENT

FY 14‐15 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

GENERAL SEWER REHABILITATION (continued)

Capital Improvement Program | Page 104

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

FY 17‐18 thru FY 21‐22 BUDGET

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

GENERAL SEWER REHABILITATION (continued) $ 481,200

$ 3,000

$ ‐

$ ‐

$ ‐

Four Inch Main ‐ Dry Ridge Road $ 179,600 This project is a 4" main and extends from Dry Ridge Road to Lucky Lane and Windsor Road in Asheville. This project is in the area north of Merrimon Avenue and east of Stratford Road The existing line is a 4" rangeburg pipe which is in poor condition.

$ 5,100

$ 34,800

$ 1,000

$ ‐

$ ‐

$ 138,700

Four Inch Main ‐ Mountain Terrace This project is located in West Asheville, near Leicester Highway. It is comprised of 448 LF of 8" 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.

This project is located in North Asheville and is off N. Griffin Blvd at Redwood Road It is comprised of 663 LF of 8” DIP. It will replace an existing 4” pipe system.

Four Inch Main ‐ Oakland Dr. @ Pine This project proposes to replace an existing 4" main running between the 200 block of Pine Street and the 100 block of Oakland Drive in Black Mountain, NC. A new 8" ductile iron pipe main will be installed.

Four Inch Main ‐ Town Mtn. Road This project is located in Asheville on Town Mountain Road just north of I‐240. It is comprised of approximately 530 LF of 8" DIP. The existing sewer line is undersized, in very poor condition, and is partially located under existing structures.

Four Inch Main ‐ Washington Avenue This project is located in North Woodfin at the north end of Washington Avenue It is comprised of approximately 1,140 LF of 8" DIP. The existing sewer line is undersized and in very poor condition.

Givens Estates This project is located in South Asheville and is between Hendersonville Hwy (US 25 South) and Sweeten Creek Road. It is comprised of 2,680 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.

$ 82,879

$ 71,500

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 246,718

$ 198,700

$ 2,500

$ ‐

$ ‐

$ ‐

$ ‐

$ 148,100

$ ‐

$ 4,400

$ ‐

$ 38,300

$ ‐

$ 105,400

$ 346,750

$ 26,315

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 220,900

$ 7,400

$ 4,300

$ ‐

$ 209,200

$ ‐

$ ‐

$ 938,550

$ 818,600

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

2012‐2013 BUDGET DOCUMENT

$ ‐

Capital Improvement Program | Page 105

Forest Ridge Road $ 501,620 This project is located in South Asheville, between Sweet Creek Road and Hendersonville Road. It is comprised of 2,842 LF of 8" DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

Hendersonville Road at Mills Gap Road $ 824,700 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 1,108 LF of 14”, 835 LF of 12”, 125 LF – 10” and 690 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. Hendersonville Road @ Rosscraggon $ 892,000 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" DIP. The existing sewer line is in very poor condition.

Hilliard Avenue @ Aston Park $ 504,100 This project is located in Asheville and is comprised of 5,300 LF of 8" DIP. This project will eliminate the Aston Park pump station and alleviate maintenance issues on the current line.

$ 6,000

$ 207,000

$ 1,000

$ 568,900

$ ‐

$ ‐

$ 13,500

$ 83,000

$ 13,000

$ ‐

$ 748,000

$ 9,500

$ 23,000

$ 51,000

$ 408,600

$ ‐

$ ‐

$ ‐

Horizon Hill Road (Hy‐Vu Drive) This project is located in North Asheville, near Merrimon Avenue. It is comprised of 1,100 LF of 8" DIP. The current line is undersized for the properties it serves. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Indiana Avenue This project is located in West Asheville and is between State Street and Montana Avenue. It is comprised of 2,837 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. Kanawha Drive This project is located in Montreat and is comprised of 675 LF of 8" DIP. The current line is 6" clay with repeated maintenance issues.

Laurel Road This project is located in the Royal Pines area of southern Buncombe County. It is comprised of approximately 686 LF of 8" DIP. The existing sewer line is in very poor condition and has had repeated work orders to repair this line.

$ 175,700

$ 6,500

$ ‐

$ ‐

$ 156,200

$ 4,000

$ ‐

$ 388,900

$ 53,000

$ 311,200

$ 4,500

$ ‐

$ ‐

$ ‐

$ 132,000

$ 38,000

$ ‐

$ 90,400

$ ‐

$ ‐

$ ‐

$ 155,482

$ ‐

$ ‐

$ 137,000

$ ‐

$ ‐

$ ‐

GENERAL SEWER REHABILITATION (continued)

2012‐2013 BUDGET DOCUMENT

FY 15‐16 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 14‐15 BUDGET

Capital Improvement Program | Page 106

FY 13‐14 BUDGET

PROJECT NAME

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

TOTAL ESTIMATED COST

$ 3,000

$ 34,000

$ ‐

$ 279,600

$ ‐

$ ‐

$ 81,300

$ ‐

$ 6,000

$ ‐

$ 500

$ 71,400

$ 1,200

$ 654,200

$ 9,900

$ 563,000

$ ‐

$ ‐

$ ‐

$ ‐

$ 37,500

$ 32,500

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 66,700

$ 47,700

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

Melody Circle $ 889,000 This project is located in Swannanoa, adjacent to Route 70 on Melody Circle. It is comprised of approximately 4,610 LF of 8" DIP. The existing sewer has deteriorated from multiple root penetrations as well as various cracks and/or breaks in the pipe.

Merrimon Avenue at Clearview Terrace $ 131,150 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.

$ 63,100

$ 40,000

$ 771,500

$ ‐

$ ‐

$ ‐

$ 9,000

$ 115,400

$ ‐

$ ‐

$ ‐

$ ‐

FY 15‐16 BUDGET

FY 16‐17 BUDGET

GENERAL SEWER REHABILITATION (continued) Long Shoals Road @ Allen Avenue 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 LF of 8" DIP. The existing sewer line is deformed in various locations and is in poor condition.

Louisiana Avenue @ Brucemont Circle This project is located within the City of Asheville and is a replacement of an existing 4" and 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 LF of new 8" DIP main.

Macon Avenue at Sunset Parkway 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 1,126 LF of 10” DIP (open Trench construction) and 1,503 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 (SS) This project is located in Black Mountain, southwest of the NC Route 9/Blue Ridge Road intersection. It consists of replacing approximately 1,330 LF of deteriorating 8" sewer pipe. The existing line is fractured in various locations.

Meadow Lark Road This project is located in South Asheville, near Haw Creek Road.

It is comprised of 635 LF of 8" DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

2012‐2013 BUDGET DOCUMENT

$ 327,700

PROJECT NAME

FY 14‐15 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Capital Improvement Program | Page 107

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

FY 17‐18 thru FY 21‐22 BUDGET

TOTAL ESTIMATED COST

FY 15‐16 BUDGET

FY 16‐17 BUDGET

$ 12,150

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 2,000

$ 9,000

$ 500

$ 311,200

$ ‐

Mount Vernon Place This project is located in north Asheville, south of Beaver Lake near Mount Vernon Place. It consists of replacement of approximately 3,007 LF of 8" DIP. The existing sewer is in poor condition and has experienced numerous leaks.

Old Haywood Road @ Starnes Cove 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 LF of 8" 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 Avenue This project is located in Swannanoa along Old US Highway 70.

It is comprised of 2,042 LF of 12" DIP and 1,170 LF of 8" DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Old US 70 at Grovestone Quarry This project is located in Swannanoa near the Grovestone Quarry. The current line is comprised of 8", 12" and 20" vitrified clay pipe in very poor condition and has had several overflows. The new line will be 12" and 20" ductile iron pipe.

Old US 70 at Pine Circle 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" DIP sewer. The existing sewer line in this area is in very poor condition with numerous sanitary sewer overflows.

$ 669,800

$ 58,800

$ 314,300

$ 206,800

$ ‐

$ ‐

$ ‐

$ 313,800

$ 25,800

$ ‐

$ ‐

$ 279,800

$ ‐

$ ‐

$ 895,100

$ 57,000

$ 776,800

$ ‐

$ ‐

$ ‐

$ ‐

$ 1,512,000

$ ‐

$ 45,000

$ 44,000

$ ‐

$ ‐

$ 1,423,000

$ 526,500

$ 29,000

$ ‐

$ ‐

$ 478,900

$ ‐

$ ‐

2012‐2013 BUDGET DOCUMENT

$ 637,101

GENERAL SEWER REHABILITATION (continued)

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Merrimon Avenue at Stratford $ 720,300 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 1,053 LF of 24” DIP, 1,224 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. Mountainbrook Road @ Chunns Cove $ 330,000 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 1,605 LF of 8" DIP main.

Capital Improvement Program | Page 108

FY 13‐14 BUDGET

PROJECT NAME

FY 14‐15 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

GENERAL SEWER REHABILITATION (continued) Panola Street Rehab.

This project is located in the Montford neighborhood of Asheville on Panola Street, adjacent to Montford Park. The existing pipe runs under houses and other structures and is in poor condition. Approximately 460 LF of 8" ductile iron pipe will be installed as part of this project.

Patton Avenue @ Parkwood Road This project is located in West Asheville near the intersection of Patton Avenue and Haywood Road. It is comprised of approximately 1,190 LF of 8" DIP. The existing sewer line is undersized and in very poor condition.

Rash Road Rehab. (SS) This project is located in West Asheville and is comprised of 550 LF of 8" DIP. The existing sewer line is 6" 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.

Riverside Dr. @ Silverline Plastic This project is located in Woodfin and is comprised of 400 LF of 8" ductile iron pipe. The existing line is 4", 6" and 8" vitrified clay pipe, runs under a building, and is in poor condition.

$ 42,600

$ ‐

$ ‐

$ 112,200

$ ‐

$ 398,842

$ 137,200

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 28,200

$ 17,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 84,700

$ 2,000

$ 20,800

$ ‐

$ ‐

$ 61,900

$ ‐

Roberts St. @ Haywood Road Bridge (SS) $ 24,050 This project is located in downtown Asheville and is comprised of 200 LF of 8" DIP. The existing sewer line is 6" 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 $ 268,000 This project is for the replacement of an existing 6" VCP line which extends from Evergreen Avenue to Robinwood Avenue.

The current location of this line is between houses, and makes access and maintenance very difficult. The new line will be located within the public right of way. The existing line is also in very poor condition.

Sandhill @ Russell/Davenport $ 416,700 This project is located in W. Asheville and is comprised of 2,600 LF of 8" ductile iron pipe. The existing line is 8" vitrified clay pipe in poor condition with a history of overflows at various sites.

$ 19,750

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 500

$ 256,600

$ ‐

$ ‐

$ 14,000

$ 86,000

$ 316,700

$ ‐

$ ‐

$ ‐

2012‐2013 BUDGET DOCUMENT

$ ‐

Capital Improvement Program | Page 109

$ 157,800

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

$ 824,250

$ 104,500

$ 646,500

$ 21,000

$ ‐

$ ‐

$ ‐

$ 1,476,481

$ 1,180,035

$ 109,800

$ ‐

$ ‐

$ ‐

$ ‐

$ 222,400

$ 27,200

$ ‐

$ 189,200

$ ‐

$ ‐

$ ‐

$ 207,000

$ ‐

$ 18,800

$ 1,000

$ ‐

$ ‐

$ 178,500

$ 122,200

$ 25,100

$ ‐

$ ‐

$ 92,300

$ 1,000

$ ‐

$ 566,500

$ 39,500

$ ‐

$ 503,300

$ 7,000

$ ‐

$ ‐

$ 195,150

$ ‐

$ 8,500

$ 750

$ ‐

$ 180,400

$ ‐

FY 15‐16 BUDGET

FY 16‐17 BUDGET

2012‐2013 BUDGET DOCUMENT

FY 14‐15 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

GENERAL SEWER REHABILITATION (continued) Shadowlawn Drive 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 3,458 LF of 8” DIP. It will replace an existing system which has been a major source of I & I. Short Coxe at Southside 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 1,164 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. Sunset Drive at Bee Tree Road This project is located in Swannanoa, near Warren Wilson College. It is comprised of 4,000 LF of 8" DIP. There have been multiple sanitary sewer overflows and repeated repairs on this line.

Sweeten Creek Road @ Busbee View This project is for the rehabilitation of an existing line which begins at Sweeten Creek Road and extends to Ona Berry Lane (off Busbee Lane). A portion of this line goes under a concrete loading dock and in some places the pipe cannot be located without extensive work on private property. There have been several service calls for repairs on this line.

Upper Grassy Branch Road @ Maxwell Road This project is located in East Asheville and is comprised of 580 LF of 8" DIP. The existing sewer line is 6" clay with root and odor problems.

Wendover Drive 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 1,868 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. Woodfin Avenue @ US 19‐23 This project is located in Woodfin between Woodfin Rd and the Craggy Mtn Line RR. It is comprised of approximately 1,004 LF of 8" 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.

Capital Improvement Program | Page 110

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

FY 17‐18 thru FY 21‐22 BUDGET

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

$ 3,496,000

$ 3,496,000

$ 3,496,000

$ 3,496,000

$ 3,496,000

$ 17,480,000

$ 50,000

$ 50,000

$ 50,000

$ 50,000

$ 50,000

$ 250,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 7,875,000

$ 7,559,101

$ 9,261,500

$ 6,470,400

$ 7,159,200

$ 6,891,900

$ 27,563,700

GENERAL SEWER REHABILITATION (continued) SSD Rehabilitation & Replacement (Annual) $ 34,710,000 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.

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

Future Projects ‐ General Rehabilitation $ 7,875,000 This line item provides a placeholder for future (and unidentified) projects over the District’s ten‐year planning window.

SUBTOTAL Inflation per ENR Const. Cost Index SUBTOTAL with inflation

$ 66,495,397 1.0000

1.0000

1.0365

1.0743

1.114

1.154

6.434

$ 7,559,101

$ 9,599,545

$ 6,951,359

$ 7,972,094

$ 7,954,561

$ 35,561,924

Braddock Way ‐ PRP 20002 $ 810,790 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 3,241 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.

$ 4,500

$ 42,837

$ ‐

$ 732,100

$ 11,800

$ ‐

Brookcliff Drive ‐ PRP 59001 $ 347,500 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 2,529 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.

$ 308,500

$ 3,600

$ ‐

$ ‐

$ ‐

$ ‐

PIPE RATED PROJECTS

Capital Improvement Program | Page 111

2012‐2013 BUDGET DOCUMENT

$ 66,495,397

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 17‐18 thru FY 21‐22 BUDGET

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

PIPE RATED PROJECTS $ ‐

$ ‐

$ 495,700

$ 5,200

$ ‐

Elk Park Drive ‐ PRP 35001 $ 388,806 This project is located in Woodfin, near Elk Mountain Road. It is comprised of 2,100 LF of 8" DIP. It was generated by the District's Pipe Rating Program, which flags structurally‐ deficient pipes using a numerical rating system.

$ ‐

$ 336,500

$ ‐

$ ‐

$ ‐

$ ‐

Fairfax Avenue ‐ PRP 65001 This project is located in West Asheville. It is comprised of 2,042 LF of 8" DIP. The existing sewer line is in very poor condition and the source of frequent repairs.

Moore Circle ‐ PRP 45001 This project is located in Black Mountain, near Ridgecrest. It is comprised of 1,493 LF of 8" 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.

Royal Pines Drive ‐ PRP 47009 This project is located in South Asheville, between Hendersonville Road and Sweet Creek Road. It is comprised of 3,500 LF of 8" 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 This project is located in eastern Buncombe County just off of Old US Highway 70. It is comprised of 1,619 LF of 8" DIP. The existing sewer line is in very poor condition, the source of frequent repairs.

Sycamore Terrace ‐ PRP 34012 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 LF of 8" DIP. There has been multiple sanitary sewer overflows and repeated repairs on the existing sewer line.

$ 562,100

$ ‐

$ 559,100

$ ‐

$ ‐

$ ‐

$ ‐

$ 338,046

$ 306,800

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 656,400

$ 11,000

$ ‐

$ ‐

$ 626,300

$ ‐

$ ‐

$ 319,400

$ 313,600

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 632,689

$ ‐

$ 604,900

$ ‐

$ ‐

$ ‐

$ ‐

2012‐2013 BUDGET DOCUMENT

$ 750

Capital Improvement Program | Page 112

Crockett Road ‐ PRP 36002 $ 547,801 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 2,088 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.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

PIPE RATED PROJECTS Pipe Rated Project Contract #7 (Lining) $ 902,500 This is a trenchless technology project that includes lining substandard sewer lines with either CIPP or Fold and Form pipe. Existing manholes will also be repaired or replaced as part of the work.

Pipe Rated Projects ‐ Future Lining $ 6,615,000 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.

$ 902,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 1,102,500

$ 5,512,500

SUBTOTAL

$ 1,847,150

$ 1,546,937

$ ‐

$ 1,854,100

$ 1,119,500

$ 5,512,500

Inflation per ENR Const. Cost Index SUBTOTAL with inflation

$ 12,121,032 1.0000

1.0000

1.0365

1.0743

1.1135

1.1542

6.434

$ 1,847,150

$ 1,603,400

$ ‐

$ 2,064,624

$ 1,292,115

$ 7,094,009

Douglas Place PSR $ 79,300 Received a Notice of Violation from NCDENR in June 2010 and opted to get on the Private Sewer list for rehabilitation.

Freno Drive PSR (Lower) $ 449,800 This project is located in the Oakley neighborhood of Asheville, south of I‐40. It encompasses a private system which was taken over by MSD in 2007 for maintenance. Approximately 2,605 LF of existing lines will be replaced. The old lines do not meet current design standards and are in poor condition.

$ 5,500

$ 8,000

$ ‐

$ 65,800

$ ‐

$ ‐

$ 14,500

$ 9,800

$ 13,000

$ ‐

$ 412,500

$ ‐

Transfer of Private Sewers to MSD $ 50,000 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.

Future Projects ‐ PSR $ 630,000 This line item provides a placeholder for future (and unidentified) PSR projects over the District’s ten‐year planning window.

$ 5,000

$ 5,000

$ 5,000

$ 5,000

$ 5,000

$ 25,000

$ ‐

$ 90,000

$ 90,000

$ ‐

$ ‐

$ 450,000

SUBTOTAL

$ 25,000

$ 112,800

$ 108,000

$ 70,800

$ 417,500

$ 475,000

PRIVATE SEWER REHABILITATION

SUBTOTAL with inflation

$ 1,209,100 1.0000 $ 1,209,100

1.0000 $ 25,000

1.0365

1.0743

1.1135

1.1542

6.434

$ 116,917

$ 116,028

$ 78,839

$ 481,874

$ 611,275

$ 113,000

$ 114,000

$ 100,000

$ 87,000

$ 418,000

TREATMENT PLANT, PUMP STATIONS & GENERAL CAPITAL IMPROVEMENTS Building and Facility Rehabilitation $ 958,000 This item is for the replacement of larger capital items such as roofing systems, HVAC, and subcontracts on buildings and structures within the MSD campus and treatment plant facility.

Capital Improvement Program | Page 113

Inflation per ENR Const. Cost Index

$ 126,000

2012‐2013 BUDGET DOCUMENT

$ 12,121,032

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

TREATMENT PLANT, PUMP STATIONS & GENERAL CAPITAL IMPROVEMENTS (continued) $ ‐

$ ‐

$ ‐

$ ‐

$ ‐

Final Microscreen Replacement $ 10,665,000 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.

$ 2,617,600

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

Flow Monitoring $ 169,905 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.

$ 15,000

$ 16,000

$ 18,000

$ ‐

$ ‐

$ ‐

$ 125,000 Headworks Odor Control 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.

Hydro Facility Repairs $ 700,000 This project is for the repair of Turbine No. 2 and the replacement of the aged control system for the switchgear.

Incinerator Sys. Evaluation & Repairs $ 156,000 Dewatered sludge from MSD's WRF is disposed of via incineration, an intense process involving high heat and corrosive gases. Incinerator piping has experienced recent failures. An evaluation is being conducted to identify area problems and suggest methods of rehabilitation.

$ ‐

$ ‐

$ ‐

$ ‐

$ 125,000

$ ‐

$ 500,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 60,000

$ 80,000

$ ‐

$ ‐

$ ‐

$ ‐

$ 240,000

$ 120,000

$ ‐

$ ‐

$ ‐

$ ‐

$ 360,500 Influent Pump Replacement The three influent pumps are critical because they pump all wastewater into the plant. They have all been re‐built and are approximately 25 years old. This is to purchase three new pumps ‐ staff will install.

2012‐2013 BUDGET DOCUMENT

$ 950,000

Capital Improvement Program | Page 114

Electrical Improvements $ 2,274,400 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.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

TREATMENT PLANT, PUMP STATIONS & GENERAL CAPITAL IMPROVEMENTS (continued) $ 100,000

$ ‐

$ 50,000

$ 50,000

$ ‐

$ ‐

$ ‐

$ 55,000

$ 10,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

$ 600,000

$ ‐

$ ‐

$ ‐

$ 100,000

$ 100,000

$ 400,000

$ 250,000

$ ‐

$ 250,000

$ ‐

$ ‐

$ ‐

$ ‐

$ 18,800

$ 8,500

$ 1,800

$ ‐

$ ‐

$ ‐

$ ‐

$ 3,505,000

$ ‐

$ 460,000

$ 3,045,000

$ ‐

$ ‐

$ ‐

$ 110,000

$ 110,000

$ ‐

$ ‐

$ ‐

$ ‐

$ ‐

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program | Page 115

Nitrogen Removal MSD's NPDES effluent discharge permit, issued Feb. 25, 2011 includes a special condition "Ammonia Reduction Evaluation" requiring a feasibility study be submitted within 4.5 years of permit issue date to evaluate possible ammonia removal strategies via plant improvements.

Plant Security Upgrades 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.

RBC Replacement 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.

Slide Gate Repair 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.

Weaverville Force Main Ph. 3 (SS) This project includes the replacement of approximately 680 LF of ductile iron pipe on Wiley Drive off of Old Marshall Hwy. The section of pipe was noted for corrosion potential in the Weaverville Pumping System Study. The new line will be constructed of HDPE pipe.

Weaverville Pump System Rehab.

This project extends from the MSD WRF north to the Weaverville Pump Station No. 1. It is comprised of replacing approximately 10,579 LF of 12" DIP force main with new 18" force main piping as reccomended in the Weaverville Pump Station Study.

New Communications Equipment This line item is for the replacement of the District's telephone system and the Boardroom recording equipment. The equipment is old and has had problems in recent years. The phone system has not been supported since 2000, and replacement parts can only be obtained from second‐hand sources. The Boardroom recording system uses a cassette tape system and is obsolete.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

FY 13‐14 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

TREATMENT PLANT, PUMP STATIONS & GENERAL CAPITAL IMPROVEMENTS (continued) Work Order Management Software $ 567,000 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. Also included is software for managing the District's closed‐circuit TV process for TV'ing pipes and the Pipe‐Rating Program.

$ 127,000

$ 50,000

$ 100,000

$ ‐

$ ‐

$ ‐

SUBTOTAL

$ 4,764,100

$ 1,140,800

$ 3,327,000

$ 200,000

$ 312,000

$ 818,000

Inflation per ENR Const. Cost Index

$ 20,614,605 1.0000

1.0000

1.0365

1.0743

1.1135

1.1542

6.434

$ 4,764,100

$ 1,182,439

$ 3,574,303

$ 222,709

$ 360,107

$ 1,041,335

Design, ROW, & Const. Mgmt. Exp. $ 30,259,307 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.

$ 2,687,661

$ 2,750,990

$ 2,811,575

$ 2,944,750

$ 3,006,217

$ 16,058,114

SUBTOTAL

$ 30,259,307

$ 2,687,661

$ 2,750,990

$ 2,811,575

$ 2,944,750

$ 3,006,217

$ 16,058,114

$ 146,369,653

$ 17,164,180

$ 16,877,746

$ 15,926,131

$ 13,557,617

$ 13,094,874

$ 69,481,323

SUBTOTAL with inflation

$ 20,614,605

DESIGN, ROW, & CONSTRUCTION MANAGEMENT EXPENSES

BUDGET SUMMARY SUBTOTAL with Inflation

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

$ 200,000

$ 200,000

$ 200,000

$ 200,000

$ 200,000

$ 1,000,000

TOTAL

$ 18,364,180

$ 17,077,746

$ 16,126,131

$ 13,757,617

$ 13,294,874

$ 70,481,323

$ 148,369,653

$ ‐

2012‐2013 BUDGET DOCUMENT

$ 1,000,000

Capital Improvement Program | Page 116

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.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 12‐13 BUDGET

Program Summary (continued)

www.msdbc.org

PROJECT NAME

TOTAL ESTIMATED COST

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Impacct of CIIP on Operati O ons One of the purposes off a budget document d is to describe the impact o of significantt non‐routinee capital expenditure es on a gove ernment’s current and fu uture operati ng budgets. For most m municipal and d county governmentts, non‐routin ne capital im mprovements consist of eexpansion off facilities, w which often rresult in higher operating costs. For F example, larger buildiings increasee utility expen nses, and new w structures such as libraries or swimming pools p involve e hiring addittional staff. In addition, for most m municipal and county governmentts, non‐routin ne capital imp provements aare, for the m most part, baseed upon the decisions of tthe local governing au uthority.

The Districtt’s CIP is diffferent in two o respects. First, F almost all non‐routtine capital eexpenditures involve rehabilitatio on of already existing sewe er pipe infrasstructure, andd secondly, th he District’s ccapital improvvements to infrastructure are mandated by the state en nvironmentall regulatory department,, imposing limits on discretionarry action and cost.

Through maajor capital im mprovements to the sewerr collection syystem, the District expectss to realize long‐term cost reductiion in wastew water treatm ment operatio ons. The folloowing summ mary illustratees the impact of the Capital Imprrovement Pro ogram on the District’s current and futuure operation nal budgets.

www.msdbcc.org

Capital Im mprovementt Program | P Page 117

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

INTERCEPTOR AND WET WEATHER REHABILITATION Christian Creek Int.: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

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 Int.: 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.

West French Broad M.P. 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.

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.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

GENERAL SEWER REHABILITATION

Campus Drive @ UNCA: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

2012‐2013 BUDGET DOCUMENT

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

Bear Creek Road at School Road: 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.

Broadview Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Broadway St. at Bordeau Place: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program | Page 118

Haw Creek WW (CDM #6): 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

$0

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

GENERAL SEWER REHABILITATION $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program | Page 119

Central Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance 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.

East State Street @ West St.: 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. (SS): No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Elkwood Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

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

Fair Oaks Rd @ Green Road: 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 ‐ Dry Ridge 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 ‐ Oakland Dr. @ Pine: 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 Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Givens Estates: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary (continued)

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

GENERAL SEWER REHABILITATION (continued) Hendersonville Road at Mills Gap Road: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Hendersonville Road @ Rosscraggon: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Hilliard Avenue @ Aston Park: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

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$0

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$0

$0

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$0

$0

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$0

$0

$0

$0

$0

$0

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$0

$0

$0

$0

$0

$0

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$0

$0

$0

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$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program | Page 120

Horizon Hill Road (Hy‐Vu Drive): 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.

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

Long Shoals Road @ Allen Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Louisiana Avenue @ Brucemont Circle: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Macon Avenue at Sunset Parkway: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Meadowbrook Drive (SS): 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 Avenue at Clearview Terrace: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Merrimon Avenue at Stratford: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Mountainbrook Road @ Chunns Cove: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Mount Vernon Place: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

$0

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary (continued)

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

GENERAL SEWER REHABILITATION (continued)

Sweeten Creek Road @ Busbee View: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

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

Wendover Drive: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

2012‐2013 BUDGET DOCUMENT

Shadowlawn Drive: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Short Coxe at Southside: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Sunset Drive at Bee Tree Road: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program | Page 121

Old Haywood Road @ Starnes Cove: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Old US 70 at Grovemont Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Old US 70 at Grovestone Quarry: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance 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.

Panola Street Rehab.: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Patton Avenue @ Parkwood Road: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Rash Road Rehab. (SS): No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Riverside Dr. @ Silverline Plastic: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Roberts St. @ Haywood Road Bridge (SS): No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Robinwood Avenue: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Sandhill @ Russell/Davenport: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary (continued)

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

GENERAL SEWER REHABILITATION (continued) Woodfin Avenue @ US 19‐23: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

$0

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.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

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

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

PIPE RATED PROJECTS

Scenic View Drive ‐ PRP 29020: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Pipe Rated Project Contract #7 (Lining): No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Pipe Rated Projects ‐ Future Lining: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total Pipe Rated Projects

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

PRIVATE SEWER REHABILITATION Douglas Place PSR: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

2012‐2013 BUDGET DOCUMENT

Sycamore Terrace ‐ PRP 34012: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Capital Improvement Program | Page 122

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.

Crockett Road ‐ PRP 36002: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

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.

Royal Pines Drive ‐ PRP 47009: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary (continued)

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

FY 14‐15 BUDGET

FY 15‐16 BUDGET

FY 16‐17 BUDGET

FY 17‐18 thru FY 21‐22 BUDGET

PRIVATE SEWER REHABILITATION Freno Drive PSR (Lower): No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program. $0

$0

$0

$0

$0

$0

Transfer of Private Sewers to MSD: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Future Projects ‐ PSR: No Impact to Operating Budget ‐ efficiencies gained will be used in the District's collector system preventative maintenance program.

Total Private Sewer Rehabilitation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Building and Facility Rehabilitation: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Electrical Improvements: No Impact to Operating Budget.

$0

$0

$0

$0

$0

TREATMENT PLANT, PUMP STATIONS & GENERAL CAPITAL IMPROVEMENTS $0 Final Microscreen Replacement: Impact to Operating Budget ‐ efficiencies gained $ (95,067) $ (97,919) $ (100,857) $ (103,882) $ (106,999) $ (585,113) willl reduce energy costs.

Flow Monitoring: No Impact to Operating Budget. $0 $0 $0 $0 $0 $0 Headworks Odor Control: No Impact to Operating Budget.

$0

$0

$0

$0

$0

Hydro Facility Repairs: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Incinerator Sys. Evaluation & Repairs: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

$0

Influent Pump Replacement: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Nitrogen Removal: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Plant Security Upgrades: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

RBC Replacement: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Weaverville Force Main Ph. 3 (SS): No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

Weaverville Pump System Rehab.: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

New Communications Equipment: No Impact to Operating Budget.

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Work Order Management Software: No Impact to Operating Budget.

Total Treatment Plant, Pump Stations & General Capital Improvements

$ (95,067) $ (97,919) $ (100,857) $ (103,882) $ (106,999) $ (585,113)

DESIGN, ROW, & CONSTRUCTION MANAGEMENT EXPENSES Design, ROW, & Const. Mgmt. Exp.: No Impact to Operating Budget.

Total Design, ROW, & Construction Management Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

OPERATIONAL IMPACT SUMMARY Interceptor & Wet Weather Rehabilitation

$0

$0

$0

$0

$0

$0

General Sewer Rehabilitation

$0

$0

$0

$0

$0

$0

Pipe Rated Projects

$0

$0

$0

$0

$0

$0

Private Sewer Rehabilitation

$0

$0

$0

$0

$0

$0

Treatment Plant, Pump Station and General Capital Improvements

$ (95,067) $ (97,919) $ (100,857) $ (103,882) $ (106,999) $ (585,113)

Design, ROW, & Construction Management Expenses

$0 $0 $0 $0 $0 $0 $ (95,067) $ (97,919) $ (100,857) $ (103,882) $ (106,999) $ (585,113)

TOTAL

2012‐2013 BUDGET DOCUMENT

Capital Improvement Program | Page 123

Slide Gate Repair: No Impact to Operating Budget.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

FY 13‐14 BUDGET

Operational Impact Summary (continued)

www.msdbc.org

PROJECT NAME: OPERATING EFFECT

FY 12‐13 BUDGET

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

This page intentionally left blank.

www.msdbc.org

Capital Improvement Program | Page 124

Â

Debt Financing

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

Standard & Poor's

Fitch Ratings Aa2 AA 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.

www.msdbc.org

Debt Financing | Page 125

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 bonds. 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, 2012, the District will have $96.2 million par value of outstanding revenue bond debt. During FY13, over $4.4 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, 2012 and anticipated principal repayment during FY13 are on the following two (2) pages.

www.msdbc.org

Debt Financing | Page 126

2012‐2013 BUDGET DOCUMENT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Debt Financing (continued) Outstanding Debt as of June 30, 2012

Original Issue Amount

Balance 6/30/2012

Additions

Retirements

Balance 6/30/2013

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 $ 706,000 $ ‐ $ 55,000 $ 651,000 Total Bonds–Enka Candler Series

$ 1,500,000 $

706,000 $

‐

$ 55,000 $

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.

651,000

‐ $ 14,205,000

$ 1,920,000 $ 1,900,000 $

‐ $

10,000 $ 1,890,000

4.00% term bonds issued April 3, 2003, at 99.096%, due July 1, 2014; interest payable semi‐annually. $ 1,875,000 $ 1,805,000 $

‐ $

25,000 $ 1,780,000

‐

$

35,000 $ 17,875,000

‐ $

170,000 $ 32,925,000

‐

$

170,000 $ 32,925,000

‐ $

790,000 $ 19,145,000

‐

790,000 $ 19,145,000

Total Bonds–Series 2003

$ 26,970,000 $ 17,910,000

$

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 $ 33,095,000 $ Total Bond–Series 2008A $ 33,635,000 $ 33,095,000 $

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 $ 19,935,000 $ Total Bond–Series 2008B

$ 22,165,000 $ 19,935,000

$

$

www.msdbc.org

Debt Financing | Page 127

2012‐2013 BUDGET DOCUMENT

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

Debt Financing (continued) Outstanding Debt as of June 30, 2012

Original Issue Amount

Balance 6/30/2012

Additions

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 $ 7,105,000 $

Retirements

Balance 6/30/2013

‐ $

430,000 $ 6,675,000

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

Total Bond, Series 2009A $ 17,205,000 $ 16,390,000 $

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 $ 7,870,000 $

‐

$

430,000 $ 15,960,000

‐ $ 2,925,000 $ 4,945,000

Total Bond, Series 2009B $ 13,360,000 $ 7,870,000 $ ‐ $ 2,925,000 $ 4,945,000

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. $ 336,490 $ 302,842 $ ‐ $ 16,824 $ 286,018 Total ARRA Revolving Loan

$

336,490

$

302,842

$

‐

$

16,824 $

286,018

Total Bonds–All Series

$ 115,171,490 $ 96,208,842 $

‐ $ 4,421,824 $ 91,787,018

www.msdbc.org

Debt Financing | Page 128

2012‐20 013 BUDGET DOCUMENT

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

Aggreegate Debt D Serrvice Year Enka‐ Se eries Series Serie es 2003 Ending Candler C 20 008B 2008A Refu unding June 30 Bonds Refu unding Refu unding 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Serries 20009A

Serries 20009B Refun nding

90,300 8 856,923 1,47 73,986 1,298,363 1,1880,700 3,1995,925 90,550 8 855,548 1,48 80,363 1,852,202 1,1882,575 3,235,800 90,650 4,3 383,038 1,48 81,115 1,851,743 1,1882,850 773,800 90,600 4,3 377,916 1,48 80,660 1,850,168 1,1880,300 773,800 87,400 3,1 161,366 1,48 84,247 1,857,849 1,1880,900 773,800 84,200 1,4 479,001 1,48 86,123 1,858,620 1,1880,700 656,900 81,000 1,4 475,136 1,48 87,208 1,859,120 1,1779,700 652,700 77,800 1,4 469,261 1,49 91,852 1,863,272 1,1882,800 6447,700 ‐ 74,600 1,4 470,386 1,49 90,339 2,967,245 1,1880,000 ‐ 71,400 1,4 466,811 1,49 92,109 2,979,356 1,1883,150 ‐ 68,200 1,4 462,993 1,49 97,735 2,979,445 1,1880,200 ‐ 21,000 ‐ 1,50 01,691 2,986,599 1,1880,875 ‐ ‐ ‐ 1,50 04,198 2,986,194 1,1881,750 ‐ ‐ ‐ 1,50 04,821 2,987,324 1,1880,875 ‐ ‐ ‐ 1,50 09,020 3,000,803 1,1778,250 ‐ ‐ ‐ 1,51 11,413 3,010,738 1,1778,750 ‐ ‐ ‐ 1,51 12,149 3,017,451 1,1882,125 ‐ ‐ ‐ 1,51 15,849 3,025,226 1,1779,000 ‐ ‐ ‐ ‐ 1,304,929 1,1778,250 ‐ ‐ ‐ ‐ 1,306,777 1,1779,875 ‐ ‐ ‐ ‐ 1,1778,250 ‐ ‐ ‐ ‐ ‐ 1,1779,875 ‐ ‐ ‐ ‐ ‐ 1,1778,750 ‐ 927,700 9 22,4 458,379 26,90 04,877 46,843,424 27,1553,125 8,610,425

www.msdbcc.org

AR RRA Agggregate Revo olving Debt Service Lo oan 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 16,825 ‐ ‐ ‐ ‐ ‐ 302,841

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 1,178,750 133,747,474

Debt Financing | P Page 129

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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www.msdbc.org

Debt Financing | Page 130

Â

Statistical Information

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Generral Reveenue by b Sourrce Fiscal Year Ended June 30

Industria al Sewer Chargess

Domestic Se ewer Ch harges

Facility & & Tap Fees

2002 2,539,868 8 17,8 848,396 2003 3,169,870 0 18,1 113,556 2,858,675 5 19,2 287,996 2004 2,912,188 8 19,2 257,393 2005 2,617,298 8 20,3 363,671 2006 2,693,328 8 22,0 077,774 2007 1,510,669 9 23,3 385,025 2008 1,386,132 2 22,9 904,587 2009 1,498,529 9 23,8 871,289 2010 1,565,402 2 25,3 329,492 2011

Note: Doess not include Capital Contrributions.

FFY 2002~FY 2 2011

Misceellaneous

1,518,940 1,557,990 2,050,380 1,769,620 2,481,850 3,054,950 3,005,184 2,959,115 1,654,010 2,238,171

Totaal

1,0042,874 1,2298,681 1,0042,025 2,4436,753 2,4447,394 3,3384,897 2,4444,885 1,5578,976 1,3348,691 1,1147,955

22,950,078 24,140,097 25,239,076 26,375,954 27,910,213 31,210,949 30,345,763 28,828,810 28,372,519 30,281,020

www.msdbcc.org

SStatistical Infformation | P Page 131

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Expen nses by Functiion Fiscal Year Operating Capital C Ended Expensess Imprrovement (1) (2) June

30

FFY 2002~FY 2 2011 Capittal Contribu utions (3)

Debt Service (4)

Tottal

2002

10,647,19 93

1 12,553,858

2,8774,738

5,497,793

31,573,582

2003

10,798,60 09

8,441,950

4,9224,338

4,691,040

28,855,937

2004

10,575,87 73

1 11,816,018

3,3440,566

4,754,836

30,487,293

2005

11,169,14 48

1 14,055,591

3,0553,623

6,179,174

34,457,536

2006

11,853,66 63

1 11,213,052

4,1884,135

7,071,308

34,322,158

2007

11,977,24 41

1 12,574,902

8,4004,343

7,650,737

40,607,223

2008

12,070,19 95

1 12,471,794

6,2444,304

8,419,405

39,205,698

2009

12,808,34 49

1 12,447,791

5,8556,798

6,413,405

37,526,343

2010

12,754,72 27

9,173,231

1,1228,684

7,212,980

30,269,622

2011

13,522,46 68

1 16,226,145

2,8441,859

7,255,856

39,846,328

1

Includes gen neral operation ns

Excludes depreciation exp pense.

3

This include es collection system infrastructure contributed by developpers.

4 Includes Bon nd Principal Exxpense and Bon nd Interest Lesss Capitalized Innterest Portion n and excludess early retirement of long‐term d debt.

2

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SStatistical Infformation | P Page 132

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Wasteewater Flow Table T

FFY 2002~FY 2 2011

Fiscal Year Ended June 30 0

ADF (A) (mgd)

2002 2003

19.2 21.8

$ 10,64 47,193 $ 10,79 98,609

2004

21.9

$ 10,57 75,873

2005

23.9

$ 11,16 69,148

2006

21.0

$ 11,85 53,663

2007

18.2

$ 11,97 77,241

2008

15.8

2009

16.5

$ 12,07 70,195 $ 12,80 08,349

2010

21.3

$ 12,75 54,727

2011

18.0

$ 13,52 22,468

TTotal Operatting Expensees (B)

(A) ADF=Avverage Daily Flo ow (B) Includess Collection Sysstem Operations and Administrative Expennses in addition n to Wastewater Treatment Expense es but excludess depreciation.

www.msdbcc.org

SStatistical Infformation | P Page 133

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

www.msdbc.org

Statistical Information | Page 134

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Demographic & Economic Statistics FY 2002~FY 2011

Civilian Labor Force 3

Population Estimates 1

Per Capita Income 2

Median Age 1

Employed

Unemployed

2002

210,717

27,798

39.44

105,733

6,023

5.4%

2003

213,210

27,770

39.70

108,133

6,038

5.3%

2004

215,867

29,932

39.96

109,231

5,249

4.6%

2005

216,684

31,166

40.23

109,666

5,454

4.7%

2006

223,012

33,293

40.39

114,899

4,751

4.0%

2007

225,555

34,838

40.49

116,997

4,510

3.7%

2008

229,373

35,721

40.65

118,235

5,849

4.7%

2009

231,452

34,744

40.84

108,177

10,944

9.2%

2010

239,179

Unavailable

41.01

110,464

10,032

8.3%

2011

242,509

Unavailable Unavailable

111,161

9,882

8.2%

Unemployment Rate

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

www.msdbc.org

Statistical Information | Page 135

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Principal Commercial Users

FY 2002~FY 2011 2002

Commercial User

Type of Business

Total Charges

Rank

2011 Percentage of Total Charges

Rank

$ 507,417

1

Percentage of Total Charges

Milkco, Inc.

Dairy Products & Juices

$ 420,433

3

Mission Health System

Health & Emergency Services

153,341

5

0.75 243,939

2

0.91

Ridgecrest Baptist Conference Center

Christian Conference Center

‐

‐

‐

168,202

3

0.63

Givens Estates

Retirement Community

‐

‐

‐

130,550

4

0.49

Jacob Holms Industries

Textile Manufacturing

‐

‐

‐

118,375

5

0.44

VA Medical Center ‐ Asheville Department of Veterans Affairs

Veterans Hospital

97,612

7

0.48 116,196

6

0.43

Colbond, Inc.

Chemical Manufacturer

‐

‐

‐

101,740

7

0.38

Day International

Textile Machine Parts

28,279

10

0.14 99,335

8

0.37

Arcadia Dairy Farm

Dairy Products & Juices

‐

‐

‐

73,876

9

0.27

The Biltmore Company

Tourist Attraction/Winery/Resort Services

‐

‐

‐

64,574

10

0.24

Lustar Dyeing & Finishing

Textile Manufacturing

706,850

1

3.47 ‐

‐

‐

Anvil Kintwear ‐ (formerly Asheville Dyeing & Finishing)

Textile Manufacturing

429,980

2

2.11

‐

‐

Owen Manufacturing Company, Inc.

Textile Manufacturing

217,216

4

1.07 ‐ ‐

‐

Grove Park Inn

Resort/Spa/Convention Services

129,507

6

0.64

‐

‐

‐

Beacon Blankets

Textile Manufacturing

44,914

9

0.22

‐

‐

‐

Uniform Rental Service

Uniform Rental

50,091

8

0.25

‐

‐

‐

TOTAL

Source: District Billing Records

www.msdbc.org

$ 2,278,223

2.06%

Total Charges

11.17%

‐

$ 1,624,204

1.89%

6.04%

Statistical Information | Page 136

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Principal Employers

FY 2002~FY 2011 FY 2002

FY 2011

Employees

Rank

% of Total County Employment

Employees

Rank

% of Total County Employment

Mission Health System & Hospitals

5,125

1

4.85%

6,994

1

6.29%

Buncombe County Public Schools

3,650

2

3.45%

4,000

2

3.60%

Buncombe County Government

1,835

3

1.74%

1,673

3

1.51%

The Biltmore Company

900

7

0.85%

1,583

4

1.42%

VA Medical Center ‐ Asheville

991

6

0.94%

1,139

5

1.02%

Ingles Markets, Inc.

900

8

0.85%

1,137

6

1.02%

The Grove Park Inn Resort & Spa

891

9

0.84%

1,100

7

0.99%

1,010

8

0.91%

Employer

Eaton Corporation ‐ Electrical Division City of Asheville

1,237

4

1.17%

1,000

9

0.90%

CarePartners

1,200

5

1.13%

917

10

0.82%

830

10

0.78%

Sonopress, LLC Total for Principal Employers

17,559

16.61%

20,553

18.49%

Note: The information above is for Buncombe County, N.C. The District believes that the above information is

representative of the entire service area, which extends over approximately 80% of the County.

Sources: Asheville Area Chamber of Commerce, Economic Development Department

NC Employment Security Commission

www.msdbc.org

Statistical Information | Page 137

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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Statistical Information | Page 138

Â

Appendix

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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.

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. www.msdbc.org

Appendix | Page 139

METROPOLITA AN SEWERAGE DISTRICT OF BUNCOMBE U COUN NTY, NC

2012‐20 013 BUDGET DOCUMENT

Districct Boun ndary Map M

www.msdbcc.org

Appendix | P Page 140

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

About City of Asheville & Buncombe County (continued) 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

Buncombe County

Henderson County

1970 1980 1990 2000 2009 2010

145,056 160,934 174,436 206,330 230,450 236,179

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, 115,689 people were employed in Buncombe County as of April 2012. The number of persons in the labor force has increased by 4,722 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.

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, www.msdbc.org

Appendix | Page 141

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

About City of Asheville & Buncombe County (continued) 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.

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.

www.msdbc.org

Appendix | Page 142

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Job Classification by Grade Order (effective July 1, 2012)

Annual Salary Range ‐ July 1, 2012

Grade

Minimum

Mid‐Point

Maximum

5

8

9

11

12

13

14

15

16

17

18

19

20

$ 26,512

$ 28,550

$ 29,261

$ 30,744

$ 31,511

$ 32,299

$ 33,106

$ 33,934

$ 34,784

$ 35,653

$ 36,545

$ 37,457

$ 38,394

$ 32,501

$ 35,001

$ 35,875

$ 37,692

$ 38,633

$ 39,598

$ 40,590

$ 41,602

$ 42,645

$ 43,709

$ 44,804

$ 45,923

$ 47,072

$ 38,465 Construction Crew Worker I

www.msdbc.org

Title

$ 41,423 Public Relations Representative $ 42,458 Construction Crew Worker II

Technical Services Worker II $ 44,608 Construction Worker III

Industrial Waste Technician

$ 45,724 Construction Operator I Dispatcher II Office Assistant II Technical Services Operator I $ 46,866 Environmental, Safety & Health Administrative Assistant $ 48,039 Construction Administrative Assistant

Construction Operator II

Right of Way Administrative Assistant

Technical Services Operator II

$ 49,240 Accounting Technician I

Purchasing Agent I

$ 50,469 Accounting Technician II Construction Operator III System Coordinator III Technical Services Operator III $ 51,731 Purchasing Agent II

Special Services Operator

$ 53,024 Executive Secretary/GM & Board $ 54,351 Engineering Support Technician

Payroll/Benefits Manager Technical Services Data Manager

$ 55,711 Fleet Mechanic III WWTP Operator Appendix | Page 143

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Job Classification by Grade Order (effective July 1, 2012) (continued)

Annual Salary Range ‐ July 1, 2012

Grade

Minimum

Mid‐Point

Maximum

21

22

23

24

25

26

28

29

30

32

$ 39,354

$ 40,337

$ 41,349

$ 42,380

$ 43,440

$ 44,528

$ 46,781

$ 47,949

$ 49,148

$ 51,638

$ 48,248

$ 49,456

$ 50,693

$ 51,960

$ 53,259

$ 54,591

$ 57,355

$ 58,787

$ 60,259

$ 63,309

$ 57,104 First Responder Industrial Waste Chemist

www.msdbc.org

Title

$ 58,532 Construction Crew Leader

Construction Inspector II

Engineering Technician II

HR Programs Manager

IT Technician I

Private Development Inspector

$ 59,997 Budget Analyst I Engineering Office Manager $ 61,496 Construction Inspector III

GIS Technician II

Purchasing Supervisor

$ 63,034 Construction & Repair Supervisor

IT Technician II

Preventative Maintenance Supervisor

SSD Administrator

Technical Services Supervisor

$ 64,610 Engineering Technician IV $ 67,881 Engineering Associate

Industrial Waste Coordinator

Private Development Project Manager Right of Way Agent $ 69,577

Database Analyst Environmental, Health & Safety Manager Lead GIS Technician SCADA/PLC Technician

$ 71,319 Construction Manager

Design/Drafting Manager $ 74,928 Private Development Coordinator/Plan Review

Appendix | Page 144

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Job Classification by Grade Order (effective July 1, 2012) (continued)

Annual Salary Range ‐ July 1, 2012

Grade

Minimum

33

35

36

38

40

43

45

47

50

53

$ 52,928

$ 55,610

$ 56,998

$ 59,886

$ 62,918

$ 67,754

$ 71,187

$ 74,790

$ 80,538

$ 86,731

Mid‐Point

$ 64,890

$ 68,176

$ 69,881

$ 73,419

$ 77,135

$ 83,068

$ 87,274

$ 91,690

$ 98,738

$ 106,332

contract

Maximum

Title

$ 76,800 Right of Way Manager $ 80,688 Database Administrator/Developer $ 82,705 Accounting Manager

Building Trades Manager

Engineer II

Field Operations Manager

Fleet/Mechanical Maintenance Supervisor

System Maintenance Coordinator

Utility Maintenance Manager

$ 86,893 IT Network Manager

GIS Manager

$ 91,290 Engineer III $ 98,311 WRF Superintendent $ 103,289 Director of Administrative Services $ 108,517 Director of Finance

Director of Human Resources

Director of SS Construction

Director of SS Maintenance

$ 116,860 Director of Water Reclamation Facility $ 125,846 Director of CIP Director of Planning & Development

Skill‐Based 13 ‐ 24 $ 32,299 $ 43,340 $ 54,351

13 ‐ 24 $ 32,299 $ 43,340 $ 61,496

24 $ 42,380 $ 51,960 $ 61,496 www.msdbc.org

General Manager

Building Trades Mechanical Maintenance Foreman Electrical Maintenance Foreman Maintenance Specialists Electrical Maintenance Technicians Appendix | Page 145

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Staffing History (FTE’s) Approved Positions 10‐11

Budgeted Positions 11‐12

Budgeted Positions 12‐13

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

1 1 1 1 1 1 1 7

1 1

1 1

1 1 1 1 1 1 1 7

1 1

1 1

1 1 1 1 1 1 1 7

1 1

1 1

Division & Position

www.msdbc.org

1 1 1

1 1 1

1 1 1

3

1 1 2

1 1 1 3

3

1 1 2

1 1 1 3

3

1 1 2

1 1 1 3

Appendix | Page 146

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

www.msdbc.org

Approved Positions 10‐11

Budgeted Positions 11‐12

Budgeted Positions 12‐13

1 1 2

3 1 4

1 1 2

3 1 4

1 1 2

3 1 4

1 0

1 0

0 1

1

1

1 1 1

1 1 1 3

1 1 1 3

1 2 1 1 1 1 7

1

2 1 1

3

1 1 1

5

3

1 2 1 1 1 1

3

7

1 1 1

0 2 1 1 0 1 5

Appendix | Page 147

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Staffing History (FTE’s) (continued) 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

www.msdbc.org

Approved Positions 10‐11

Budgeted Positions 11‐12

Budgeted Positions 12‐13

1

1

1

1

1

1 2 1 1

1 2 1 1 5

1

1 2 1 1

5

1 1 1

1 1 1 3

5

1 1 1 3

1 1 1

3

1 1 1

3

3

3

1 1 1 1 4

1 1 1

1 1 1

1 1 1 1 4

1 1 1

1 1 1 1 4

1 1 1

3

3

3

Appendix | Page 148

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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 (Construction & Maintenance) Office Support: Dispatcher Office Assistant II SSD Administrator Total Office Support

www.msdbc.org

Approved Positions 10‐11

Budgeted Positions 11‐12

Budgeted Positions 12‐13

12 1

12 1

13

13

12 1 13

6 1 1

6 1 1

8

8

6 1 1 8

1 5 1 1

1 5 1 1

8

8

1 5 1 1 8

4 1

4 1

4 1

5

5

5

1 1 1 1

1 1 1 1

0 1 1 1

4

4

3

1 2 1

1 2 1

4

4

1 2 1 4

Appendix | Page 149

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

Staffing History (FTE’s) (continued)

Division & Position Department of System Services (Construction & Maintenance) 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 10‐11

Budgeted Positions 11‐12

Budgeted Positions 12‐13

1 4 1 1 4 3 2 4 3 2 3 2 3 2 1 1 5 2 2 1 3 1

1 4 1 1 3 5 2 3 4 2 3 2 3 2 1 1 5 2 2 1 3 1

1 4 1 1 3 5 2 3 4 2 3 2 3 2 1 1 5 2 2 1 3 1

52

150

52

150

52 148

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Glossary

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NC

2012‐2013 BUDGET DOCUMENT

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

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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.

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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.

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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.

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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. www.msdbc.org

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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.

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