Operation & Maintenance Fund (continued)

Themajorfactors thatimpact ouroperatingandmaintenance budgetinclude:

1.Repairs and Maintenance—A majority of the Districts' approximately 1,140 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 budgetedsignificant amounts for maintenance ofequipment, buildings,andgrounds as well as for inhousesewerlinerepair andmaintenance.

2.Salaries and Benefits—A 6.3% 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 Maintenancebudget.

3. Post-Employment Health Benefit—Starting in FY2009, GASB45required the recognition of cost for Post-Employment Health Benefits. Current funding represents 1.4% of total operations.