Capital Improvement Program (continued)

Proposed Budget

The proposed Capital Budget for FY2024 is $26,377,993 which includes a contingency of $1,000,000. The $1,000,000 contingency line item is used for the entire program rather than having a separate contingency for each project. This is more efficient and continues to provide sufficient reserves for the District’s capital program. Additionally, a proposed budget for Reimbursement Projects totaling $142,950. For these types of projects, the District will reimburse a developer for constructing a system, which will serve larger areas upstream oftheir development.

Totalprojectcostsovertheten-yearwindowareestimatedat$531.8million.Costsareupdatedeachyearduring budget preparation to accurately reflect current bid pricing and market conditions. Included in future years’ is an inflation factor of 3.42%, which is a ten-year average of the annual increases in the ENR Construction Cost Index. This factor is alsoupdatedeach year.

Approximately 62 infrastructure projects are included in the CIP for FY2024, ranging in length from 121 linear feet to over 36,000 linear feet. Five (5) new Collection System Projects have been added to the CIP for FY2024 and beyond. In-house forces, as well as, outside contractors will be used to rehabilitate or replace approximately 40,000linearfeet per year.

Current Year Highlights

 CollectionSystemCapitalImprovements:

MSD initiated and maintains a major program to rehabilitate its Wastewater Collection System. This programwillconformtotheNorthCarolinaDepartmentofEnvironmentalandNaturalResources(NCDENR) Collection System Permit requirements and will improve the operational performance and extend the life ofthecollection system.

TheDistrict’sfocushasbeentorehabilitateofapproximately400,000linearfeetofsewerlineeveryten(10) years and other projects identified in the Master Plan. The estimated cost over a 10-year period is approximately $254.2 million outofatotal CIPbudget of$531.8 million.