SS Construction Department

Operation & Maintenance Fund (continued)

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

1. Repairs and Maintenance—A majority of the Districts' approximately 1,133 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 well as for in-house sewer line

repair and maintenance budgeted significant amounts for maintenance of equipment, buildings, and grounds as well as for inhouse sewer line repair and maintenance.

2. Salaries and Benefits—A 7.0% salary adjustment as well as a 6.5% increase for the Self-Funded

Health Insurance Plan.

Personnel costs represent over 63% of the Operating and Maintenance budget.

3. Post-Employment Health

Benefit—Starting in FY2009,

GASB45 required the recognition of cost for Post-Employment Health Benefits. Current funding represents 1.4% of total operations.