FY 2025

2024-2025 Budget Document

PRINCIPAL OFFICIALS

BoardMember Representativeof

M. Jerry VeHaun, Chairman Town of Woodfin

Jackie W. Bryson, Secretary/Treasurer

Woodfin Sanitary Water & Sewer District

Matt Ashley, Jr, Town of Montreat

BoardMember Representativeof

Esther Manheimer City of Asheville

Chris Pelly City of Asheville

Martin Moore Buncombe County

Sheila Franklin Henderson County Douglas Dearth Town of Weaverville

Nathan Pennington Buncombe County

Robert C. Watts Town of Black Mountain

E. Glenn Kelly Town of Biltmore Forest Al Whitesides Buncombe County

William G. Lapsley Henderson County Gwen Wisler City of Asheville

Roberts & Stevens, P.A. LegalCounsel

Thomas E. Hartye, P.E. General Manager

McGill & Associates EngineerofRecord W. Scott Powell, CLGFO Director ofFinance

Certificate of Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished BudgetPresentationAwardtotheMetropolitanSewerageDistrictofBuncombeCounty,NorthCarolina(MSD)for its annual budgetfor thefiscalyearbeginning July1,2023.Thisis thetwenty-sixth(26) consecutiveyear thatthe MSD has receivedthis award.

Inordertoreceivethisaward,agovernmentalunitmustpublishabudgetdocumentthatmeetsprogramcriteria as apolicy document, as anoperationsguide, as afinancial plan, andas acommunication device.

This award is valid for a period on one year only. We believe our FY2025 budget continues to conform to the program requirements,andwe are submittingit to theGFOA to determine its eligibility foranotheraward.

 Introduction 

June 12, 2024

Members of the Finance Committee

Metropolitan Sewerage District of Buncombe County, North Carolina

W. H. Mull Building

2028 Riverside Drive Asheville, North Carolina 28804

Subject: FY2025 Budget and Proposed Sewer Rates

Dear Members of the Board,

We respectfully present the FY2025 Budget for the Metropolitan Sewerage District of Buncombe County, NorthCarolina.ThebudgetincorporatesstaffrecommendationspresentedtoandacceptedbythePersonnel Committee, which met on April 23, 2024, the Capital Improvement Program Committee, which met on April 25, 2024.

We have developed the FY2025 Budget to advance the organization’s mission “toprovidewastewater collectionandtreatmenttoitsuserswhichpromotesthehealthandsafetyofaffectedcitizensinthemost effectiveandefficientmannerpossibletodayandinthefuture” . The following Operational and Capital budget isdesignedtoprovideservicesmeetingorexceedingallstateregulationsandBondOrder covenants with which the District must comply, with any rate changes to be at the lowest responsible level.

Current Year Highlights

In FY2024, the District’s domestic and industrial revenue are expected to meet budgeted projections. The District has proposed 5.00% rate increase for the upcoming year. Additionally, the District’s long-range business plan incorporates this change and projects that future rate increases will be between approximately 5.0% for the remaining nine (9) years.

This budget continues several recent initiatives to maintain the District’s overall strategy of keeping collection lines and the plant functioning effectively while rehabilitating significant portions of aging infrastructure. The most important goal remains meeting all regulatory permit requirements.

The SS Construction Department continues to expand its participation in sewer line rehabilitation and replacement efforts to maximize service and minimize SSOs. Goals for FY2025 include utilizing Infrastructure Rehabilitation System (IRS) lining, pipe bursting, and dig-and-replacement construction to rehabilitate and replace at least 15,000 linear feet, while providing preventative maintenance for approximately600,000 linear feet of thesystem byemploying in-housejet washcleaning and both chemical and mechanical root control. In addition, the SS Maintenance Department will manage the District’s Rightof-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 Plan. In 2023, the District completed the construction of the $17.2 million High Rate Primary Treatment system and continues operationalperformance testing of the system so that it may be optimized for use with the upcoming biological improvements. In addition, the District has rebuilt sections of the Incinerator including the Dome, Tuyeres, the Gas Feed System and the Heat Exchanger.

Operating Budget

The proposed $21.8 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 3.7% salary adjustment—CPI for the Southern Urban Wage Earners increased 3.7% for the last twelve-month period; Division Directors in conjunction with Employee Advisory Committee have requested a cost-of-living increase to keep pace with industry salary increases as well as to encourage retention of valued employees. On April 23, 2023, the Personnel Committee has recommended a wage increase, which has an approximate $576,000 impact.

 A 5.8% increase in funding for North Carolina retirement cost—In 2016, the Local Governmental Employees’ Retirement Systems (LGERS) adopted a rate stabilization policy to allow for predictabilityandstabilityinthecontribution rates,whilecontinuing keeping thelocalretirement system one of the best-funded systems in the country. Subsequently, LGERS raised the District’s contribution rate from 7.75% to 8.95% of total salary and wages. Over the next five years, contribution rates are projected to increase to an amount slightly over 13.64%. This has an approximate $81,000 impact on current year expenditures.

 A 0.0% increase in funding for Self-Insured Medical Plan—During FY2016, staff worked with its consultant and initiated a top to bottom review of our medical insurance plan. The effort was to ensure the District had a medical plan in line with our sister agencies as well as to limit certain benefits and increase cost sharing by employees in the amount of $175,000. The Employee Advisory Committee endorsed these changes. The two groups continue to work on a long-term strategic plan to address controllable medical issues. Staff has been able to hold employer contributionsto FY2024 levelsto cover estimated medicalexpensesof theplan whilemaintaining prudent reserves for future claims. This has a $0 impact on current year expenditures.

 Funding for Post-Employment Health Benefit—Starting in FY2009, GASB 45/75 required recognition of cost for Post-Employment Health Benefits. An actuarial study was done in the current year, staff is recommending FY2025 funding should remain at approximately $283,000. Current funding has been implemented into the proposed FY2025 budget, in addition to the current business plan, and represents 1.24% of total operations.

Materials, Supplies, and Service expenditures increased 2.5% 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 and continued expansion of the District. The District has increased specific line items to address regulatory and operational needs. Discretionary expenditures have been limited where practicable. This has an approximate $222,000 impact on 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 FY2025 is $38.2

million, which is comprised of an estimated $37.0 million in construction, $150,000 of reimbursement, and $1 million in contingency. The total 10-year CIP budget is $610.7 million.

A detailed list of individual projects and planned expenditures by year was presented at the April 25, 2024 CIP meeting. This signifies a large increase in the 10-year CIP due largely to major improvements at the Plant along with upgrades to the interceptor network. MSD will be positioned to meet future regulations and to provide capacity to serve the estimated growth for the next 50 years.

The Board has consistently financed its Capital Improvement Program through revenue bonds and pay-asyou-go moneys. As of June 30, 2024, the District will have $76.4 million in outstanding revenue bond debt, with total debt service of $8.7 million due before the end of the fiscal year. 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.

Collection System Capital Improvements:

MSD initiated and maintains an aggressive program to rehabilitate its Wastewater Collection System. Thisprogram willconform totheNorth Carolina Department of Environmentaland NaturalResources (NCDENR) Collection System Permit requirements, will improve the operational performance, and extend the life of the collection system. The estimated cost over a 10-year period is approximately $221.7 million.

MSD’s focus to rehabilitate over 356,000 feet of sewer lines for the next 10 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 GISdatabase, actualmaintenancehistory toview,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, severity of defects, record of overflows on that segment, and are combined to yield a rating useful for prioritizing rehabilitation efforts.

Pipe Rating minimizescostsbyhelping theDistrict focus rehabilitation dollarswheretheyare 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 FY2025 include Elk Mountain Place with 4,137 linear feet $1.5 million, Sand Hill Road at Baker Place 1,582 linear feet $822,500, Joyner Avenue at Amboy Road 1,000 linear feet $317,000. In FY2025, MSD will incur $1.2 million on the Incinerator Rehabilitation Project, $1.4 million on the Intermediate Clarifier Trough Rehabilitation Project, $1.4 million RBC Removal and Replacement Project and $15.8 million on the Weaverville Pump Station Replacement. 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.

TheDistrict’sCollectionSystemMasterPlanaddressestheorderlyextensionoftheDistrict’scollection 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 corporateor jurisdictional limits, Buncombe County’s Zoning Ordinance hasplayed an integralrole 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.

Wastewater Treatment Plant Capital Improvements:

During FY2015, the Treatment Facilities Plan was updated for the Water Reclamation Facility. This Plan provides short, medium, and long-term recommendations for each specific process and facility.

This update primarily expanded on several of the original plan’s longer-term recommendations. It focused specifically on improvements to the WRF Headwork’s (i.e. bar screens, influent pumping station, and the problematic grit & grease removal system), including surge control for short-term peak flows. It also investigated in detail the installation of a primary clarification process and has evaluated alternatives for the biological treatment process.

Another key aspect of the Facility Plan Update was to gain a solid understanding of regulatory issues that may influence (impact) future treatment requirements and identify long-term biological treatment alternatives to comply with anticipated future regulation changes.

Near-term and mid-term project recommendations from the Plan include:

 Plant Headworks Project—This $9.6 million project spanned 2 years and consisted of a new grit removalsystem toreplace theexisting problematicsystem,a finescreening facilitywhich will supplement the WRF’s existing bar screens, and equalization storage at the plant using existing decommissioned tanks to provide more effective treatment during peak flow events. The project was completed in FY2019.

 High Rate Primary Treatment Project—This $17.2 million project willprovide primary settling of solids to enhance the downstream biological process which will be upgraded starting in FY2028. Construction was completed in 2022 and is currently undergoing performance testing.

 Biological System Upgrades—This $226.7 million project is being driven by the future water quality regulations as set forth in MSD’s NPDES permit (effluent discharge permit). Compliance with effluent ammonia levels must be achieved by December 2037 and will require significant upgrades to the existing biological treatment system. Design will begin in FY2027 with construction starting in FY2031.

Impact of CIP on Operations

For most municipal and county governments, capital improvements often result in higher operating costs. New buildings typically result in higher utility cost as well as cost for additional personnel.

The CIP for the District is largely made up of upgrades to existing facilities such as pump stations, sewer mains, and treatment plant facilities. Although some new chemicals may be added to treatment methods on occasion, the overall net effect of the CIP is actually one of reduced cost. The marginal increase in the size of replacement facilities (seen as up-front capital cost) is offset by increases in efficiencies of the new mechanical and electrical equipment replacements. In addition, as the level of service of the sewer mains

increase with the new replacements, the operational cost will decrease for general maintenance and for emergency spill response.

Sewer Rate Increase

Staff recommends a 5.0% increase in domestic and industrial sewer rates and meter fees for FY2025.

We believe this rate increase is prudent under the current economic situation and is necessary to provide for the following District responsibilities and objectives:

 Meet current and future regulations at the Water Reclamation Facility and for the Collection System

 Replace and rehabilitate approximately 36,000 linear feet of sewer mains a year

 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 increases in future years

 Adequate current funding and maintenance of prudent reserves for Self-Insured Medical/DentalPlan

 Continue with necessary Treatment Plant upgrades

In the past, the MSD Board has endeavored to keep rate increases to a minimum. The District’s Bond Order requiressewer ratesbeset to ensure that theexcessof revenues over current expenditures isat least 120% of debt service.

Additionally,theBoardbalancesthebondorderrequirementswhilemaintaining allregulatoryand fiduciary responsibilities.

Domestic sewer rates for the past five years as well as a projection for FY2025 are shown below:

Distinguished Budget Award

The Government Finance Officers Association of the United States and Canada (GFOA) presented a DistinguishedBudgetPresentationAwardtotheMetropolitanSewerageDistrictofBuncombeCounty,North Carolina for its annual budget for the fiscal year beginning July 1, 2023. This is the twenty-sixth (26) 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 asa policy document, as an operationsguide, as a financial plan, and as a communication device.

This award is valid for a period of one year only. We believe our FY2025 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 effortsand guidance of the Board, itsCommittees, and staff. A special thanks to Jody Germaine/Budget Analyst for assembling the budget documents, Pam Thomas/HR Director, Hunter Carson/CIP Director, and Cheryl Rice/Accounting Manager for assembling the CIP Section of the Budget. 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

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 publicandessentialgovernmentalfunctionsandorganizedundertheprovisionsoftheNorthCarolina Metropolitan Sewerage Districts Act, being Article 5, Chapter 162A of the General Statutes of North Carolina, as amended. The District was established in 1962 by the North Carolina State Stream Sanitation Committee toconstruct and operate facilities for sewage treatment for municipalitiesand sanitary districts withinBuncombeCounty.

In 1967, the District completed the construction of a 25 million gallon per day (MGD) wastewater treatmentplantadjacenttotheFrenchBroadRiver.Nineteenmilesofinterceptorsewerwereinitially built, connecting the collector sewer systems located within the municipalities and other political subdivisions,whichcomprisedtheDistrict.Then,inthelate1980’s,theDistrictexpandedthecapacity of the Water Reclamation Facility to its current capacity of 40 MGD, rehabilitated the hydroelectric damandpowerhouse tomitigateenergy costs,andbuilt athermalconverter for sludgedisposal.

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 affectthe operationalefficiency of thewastewater plant.

About MSD, City of Asheville & Buncombe County(continued)

About MSD (continued)

Buncombe County is located in the Blue Ridge Mountains of Western North Carolina. The District is comprisedof the following politicalsubdivisionslocatedwithinBuncombeCounty:

City of Asheville

County of Buncombe

Town of Biltmore Forest

Town of Black Mountain

Town of Montreat

Town of Weaverville

Town of Woodfin

Woodfin Sanitary Water&Sewer District

BeaverdamWater &Sewer District

BusbeeSanitary Sewer District

Caney Valley Sanitary Sewer District

CrescentHillSanitary Sewer District

Enka-Candler Water & Sewer District

FairviewSanitary SewerDistrict

SkylandSanitary Sewer District

Swannanoa Water&Sewer District

Venable Sanitary District

The District Board consists of fourteen (14) 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 & SewerDistrict,andtheTownsofBiltmoreForest,BlackMountain,Montreat,Woodfin,andWeaverville.

With the acquisitionof the Cane CreekWater &Sewer Districtin northern Henderson County effective July1,2020,theDistrictincreasedbytwo(2)thenumber ofappointedmembersthatarerepresenting HendersonCounty.

Under the NorthCarolina MetropolitanSewerageDistrictsAct, the District isauthorized,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.

About MSD, City of Asheville & Buncombe County(continued)

District Boundary Map

About MSD, City of Asheville & Buncombe County(continued)

Population and Growth Statistics

Population growth in Buncombe County has occurred largely in a linear fashion along major transportationroutes,whichisreflectedintheconfigurationoftheDistrict’sservicearea.TheDistrict is approximately a 260-square mile service area, comprised of approximately 32% of the total land area of Buncombe County and 13% of the land area of Henderson County. The District’s service area correspondsgenerallywiththeurbanizedcoreofBuncombeCountyandstretchesdownintonorthern HendersonCounty.

The populationof thearea hassteadily increased,asillustratedin the following chart:

Located in the geographic center of Buncombe County, the City of Ashevilleisthe major populationcenter intheDistrict. About 35% of the County’s residents live in Asheville. Five (5) incorporated towns in Buncombe County-Black Mountain, Biltmore Forest, Weaverville, Woodfin, and Montreat are included in the District’s service area. Weaverville and Woodfinarenorthof Asheville,BlackMountainandMontreat are in eastern Buncombe County, and Biltmore Forest is contiguous to the City of Asheville on its southern boundary. Approximately eightpercent (8%)of the county’spopulation livesinthese five towns.

About MSD, City of Asheville & Buncombe County(continued)

Population and Growth Statistics

(continued)

Buncombe County’s topography ranges from fertile valleys to rugged mountains. Mt. Mitchell, the highestpointineasternNorth America (6,684 feet),isfound35milesnortheast of the City of Asheville in adjacent Yancey County. The topography of Buncombe County’s urbanized core is, however, a long flat plain, which has allowed Buncombe County to develop differently from the more mountainous countiesof Western NorthCarolina.

The plain, with an elevation of 2,000 feet, averages about 45 miles in width. It is bisected from south to north by the French Broad River and from east to west by the Swannanoa River and Hominy Creek, two major tributaries of the French Broad. Because of extremes in elevation, the climate varies significantly from one section of Buncombe County to another. The mean elevation of the City of Ashevilleisabout2,300feet,thesummersarecool,andthewintersaremoderatewithsmallamounts of snow. The higher elevations in Buncombe County receive considerable amounts of snow and the summers are cooler.The average January temperature is43°for the City of Asheville andthe average temperature in July is 76°. The City of Asheville receives an average of 45 inches of precipitation per year.

However, because the City of Asheville is found within a “rain shadow” caused bythe shielding effect of the nearby mountain barriers, other areas of Buncombe County, especially to the south and southwest, receive significantly higheramountsofprecipitation.

Employment and Major Industries

Buncombe County serves as a regional economic center for Western North Carolina. Its diverse commercialandindustrialbase includesmanufacturing,distribution,travelandtourism,retailtrade, health care and governmental services. According to the N. C. Department of Commerce-Labor & Economic AnalysisDivision,139,355peoplewere employedin BuncombeCountyasofJune2024. The number of personsinthe labor force hasdecreased by2,155 from the previousyear.

About MSD, City of Asheville & Buncombe County(continued)

Employment and Major Industries (continued)

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 parkingspace.

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 andpublishing,rubberandplastic products, fabricatedmetalproducts,industrialmachinery and equipment, electrical equipment, and transportation equipment. Health care, retail sales, education, and government services are the principal employers in the growing service sector of Buncombe County’s labor force. Buncombe County serves as a regional medical center for most of western NorthCarolina.

TherearetwomajorhospitalcomplexeslocatedinBuncombeCounty:MissionHospital,anacutecare medicalcenter licensedfor 853beds with 94 ERbedswhich includes the region’sonly LevelIItrauma center, NICU and children’s hospital, and the federally funded Veteran’s Administration Medical Center, Charles George VA Medical Center consisting of a 119-bed acute care hospital and 120-bed nursingfacilityservingveteransfromfour(4)locationsina23-countyareainWesternNorthCarolina, partsof EasternTennessee,andupstate SouthCarolina andGeorgia.

Also located in Buncombe County is CarePartners Health Services, a private nonprofit acute care 80bed rehabilitation facility for the treatment of stroke and ambulation dysfunction victims, traumatic brain/headinjuries, and amputation. In addition,CarePartners provides home health, adult care, and hospicecare (27-beds).

About MSD, City of Asheville & Buncombe County(continued)

Employment and Major Industries (continued)

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 includesconventioneers,commercialvisitors,andtouriststakingadvantageofthemountainscenery, moderate climate,andcraft skills ofpersons livinginthe area.Closely relatedtothe tourism industry is the growth of discount malls and outlet stores. The seasonal influx of persons from outside the regionisstrengtheningBuncombeCounty’spositionastheprimaryregionalretailcenterforareaand touristcommerce.

Toprovideasourceoffundsforpromotingtherecreational,cultural,andotherattractionsofthearea, BuncombeCountyhasimposedanoccupancytaxonhotelandmotelroomsinBuncombeCounty.The revenues from this tax are used by Buncombe County’s Tourism Development Authority to promote the growth of tourism andconventionbusiness.

Western North Carolina is known as a recreational area, which makes tourism and the hospitality industry a major contributing force to the economic vitality of Buncombe County. The Great Smoky MountainsNationalParkis found70mileswestof the City of Asheville.

Approximately 160 miles of the Blue Ridge Parkway are in western North Carolina, and the Parkway bisects BuncombeCounty from east to west. Two national forests, Pisgahand Nantahala, are located within an easy drive of the City of Asheville. These outdoor recreational resources attract thousands of visitors each year to the area for such activities as camping, hiking, canoeing, white-water rafting, fishing, and hunting. Also, south of the City of Asheville is the 255-room “chateau” known as the Biltmore House. Constructed from 1889 to 1895 by George Vanderbilt, the Biltmore House is one of North Carolina’s most visited tourist attractions, which includes self-guided tours of the House & Gardens, Antler Hill Village, featuring the Winery, The Biltmore Legacy, Village Green, and Farm. Another attraction is The Omni Grove Park Inn with 510 guest rooms, 42 meeting rooms, an 18-hole, 6,720-yard, par 70 Donald Ross designed golf course, a 43,000 square-foot spa with 31 treatment rooms and over 60 treatment selections which has augmented its appeal to the tourism and hospitality industry.

About MSD, City of Asheville & Buncombe County(continued)

Employment and Major Industries (continued)

This favorable economic environment has resulted in lower unemployment rates for Buncombe County thanacrossthe state andnation.Accordingto the U.S.Departmentof Commerce,for the year 2022, median household income in the City of Asheville was $64,538 and in Buncombe County was $66,531. This compares with $66,186 for the State of North Carolina and $75,149 for the nation as a whole.

Education

BuncombeCountyhastwopublicschoolsystems:theAshevilleCityAdministrativeUnit,whichserves about 3,990 students, consisting of (5) elementary schools, (2) middle schools, (1) high school, and several alternative classrooms/programs including a preschool program; and the Buncombe County Administrative Unit, which serves about 22,069 students, consisting of (23) elementary schools, (4) intermediate schools, (7)middle schools,(6)highschools,and(5)unit-wide specialhighschools.

Asheville-Buncombe Technical Community College is a public, two-year college, serving approximately 23,000 students in a variety of business, technical, and health care curricula. In addition,communityenrichmentclasses,suchasart,languages,andpracticalskillsareofferedyearroundatfive campus locationsthroughoutthe College’s service area.

Warren Wilson College is a private, four-year liberal arts college with an enrollment of about 825 studentsofferingacademicsin50programsofstudywithworkfortheschool(15hoursperweek)and service tothecommunity(100hoursover four years).

MontreatCollegeisaprivatefour-yearliberalartscollegewithanenrollmentof991studentsfrom25 states and 20 countries at (4) campuses which strives to be Christ-centered, student-focused, and service-driven.Inaddition,MontreatCollegeoffersacceleratedprogramsforadultstudents,including graduate,professional,andonline degreeprograms.

About MSD, City of Asheville & Buncombe County(continued)

Education (continued)

TheUniversityofNorthCarolinaatAsheville(“UNCA”)isanundergraduate,state-supportedliberalarts college with an enrollment of about 3,000 students from 39 states and 23 countries. UNCA is one of the nation'stoppublicliberalarts universitiesandone of the 17 institutionsinthe University of North Carolinasystemofferingmorethan65majors,minors,certificates,concentrations,andonegraduate program.

Transportation

An integrated network of highway, rail, and air services serves Buncombe County. Interstate Highway 40,InterstateHighway26,Interstate240(BillyGrahamFreeway),U.S.Highway19-23andU.S.Highway 74 link Buncombe County to the Piedmont area of North Carolina (including the cities of Charlotte, Greensboro,Raleigh,andWinston-Salem),thePiedmont areaof SouthCarolina(includingthecitiesof GreenvilleandSpartanburg),andtheTennessee-OhioValley area.

RailservicetoBuncombeCountyisservedbytheNorfolkSouthernRailroadCorporationprovidingrail linesthroughKnoxville,TennesseetothewestandGreenville,SouthCarolinatothesouth.Totheeast, raillinesadjoinNorthCarolina’s3,600-mile railnetwork anhour away inGreer,SouthCarolina.

Major air passenger and cargo services are available through the Asheville Regional Airport and served byAllegiant, American Airlines, Delta, jetBlue, Sun Country Airlines, and United. These carriers offer many daily non-stop flights to 30 popular destinations and enplaned 541,299 (1,077,477) passengersasof calendar year todate ending June 2024.

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 Policies & Budget Process 

Financial Plan

Guide to the Budget Document

ThisBudgetpresentationhasfourmajorobjectives:

Policy Document—To show how resources have been allocated in response to the mission statementandsupportinggoals/objectivessetforthbytheBoardofDirectors.

FinancialPlan—TopresenttheDistrict'sFinancialPlanforthefiscalyear,showingwherethemoney willcomefromandhowitwillbespent.

Operations Guide—To describe services provided along with goals and objectives for each unit withintheDistrict,andamethodformeasuringprogresstowardstheDistrict’smissionofproviding cost-effectiveandefficientwastewatercollectionandtreatment.Inaddition,aBudgetisarequired management tool for compliance with state wastewater management licensure and local governmentfiscalcontrolregulations.

CommunicationsDevice—ToexplaintheDistrictbudgetaryproceduresandinteractionswithother District planning processes and within the larger context of local and regional economic and environmentalconditions.

This document has been divided into sections as follows to assist the reader’s understanding and abilitytoeasilylocateinformation:

Introduction—Thetransmittalletterprovidescurrentyeartrendsandhighlights.

Policies&BudgetProcess—Presentsthepoliciesformingthebasisforallmanagementdecisions,a narrativeoftheoverallbudgetprocess,theunderlyingfundstructure,andadiscussionofrevenue.

Operation & Maintenance Fund—Provides detail of departmental expenditure budgets including underlyinggoalsandobjectives,aswellasaccomplishmentsandperformancemeasures.

Financial Plan

(continued)

Guide to the Budget Document (continued)

InsuranceFunds—Describesinternalservice-typefundsusedtoallocatepremiumsandassociated expensesamongvariousdepartments.

ReplacementFunds—Providesfundingstatusofvariousreplacementandreservefunds.

CIPProgram—DetailstheCapitalImprovementProgram,includingbudgetaryprocess,currentyear highlights,andsummarizesplannedprojectsfortheupcoming10years.

DebtFinancing—Providesfurtherdetailondebtphilosophyandmanagement,includingcurrentand futuredebtservice.

Statistical Information—Includes historical summaries of District financial information, plant operationaldata,andlocaldemographicandeconomicstatistics.

Appendix—Provides a description of the line item accounts that are currently used and staffing informationfortheprevious(4)yearsplustheupcomingbudgetyear.

Glossary—Definitionsoftechnicaltermsandacronyms.

Background of Entity

The Metropolitan Sewerage District of Buncombe County, North Carolina (the District), established underanactofthestatelegislature,isalocalgovernmentalagencyprovidingwastewatercollection and treatment services to approximately 59,000 residences and businesses located in several municipalities and certain unincorporated areas in Buncombe County. The governing board is comprised of fourteen members appointed by nine local governments who serve three-year overlappingterms.

The District owns a 40 million gallon per day (MGD) wastewater treatment plant and the associated collectionnetworkofapproximately1,157milesofcollectorsewers,34,700manholes,and38pump stations. The District is responsible for current operation and maintenance of this infrastructure, as wellasforplanningforfutureoperationsandcapacity.

Financial Plan (continued)

Background of Entity (continued)

The budgetary process starts with the mission statement promulgated by the District Board. To achievethepurposearticulatedinthemissionstatement,staffischargedwithdevelopinglong-term goals and the short-term objectives designed to achieve these goals. Using this framework, annual operatingandconstructionbudgetsareproposedtofulfilltheseshort-termobjectivesandthusmeet orreachtowardlong-termgoals.

Therefore,anunderstandingofthemissionstatementandtheunderlyinggoalsandobjectivesprovide a context for the decisions made in developing the annual budget. Each departmental goal and objectivearetiedtooneormoreofthenon-financialorfinancialpoliciestocoordinateandprioritize theDistrict’sfocus,initiatives,andefforts.

Mission Statement—To provide wastewater collection and treatment to its users which promotes thehealthandsafetyofaffectedcitizensinthemosteffectiveandefficientmannerpossibletoday andinthefuture.

Long-TermGoals—StaffhasdevelopedfourgoalstobepursuedinsupportoftheMissionStatement adoptedbytheBoard:

1. Protectionofhealth,safety,andtheenvironment

2. Excellenceincustomerservice

3. Cost-effectiveness

4. Continuousimprovement

Managers and employees use these goals to determine appropriateness of and to enhance coordinationandconsistencyofdecisions,activities,andinitiativesthroughouttheDistrict.

Financial Plan (continued)

Background of Entity (continued)

Short-TermObjectives—Objectivesarespecificachievementsorstrategies,whichsupportorleadto long-termgoalsandareusedtodeterminehowresourcesareallocatedinthisbudget.

1. MaintainCollectionSystemPermit. (Goal #1)

2. MaintainDischargePermittoFrenchBroadRiverforWaterReclamationFacility. (Goal #1)

3. Maintainaqualifiedandmotivatedworkforce. (Goals #1-4)

4. Coordinate, to the extent practicable, with other governmental and private entities for cooperative provision ofsewer service to gain optimum economies of scale, reducedcapital cost,andimprovedefficiency. (Goals # 1-4)

5. Participate in two-way communications with customers, elected officials, and other stakeholdersinmattersofmutualconcernsuchasregulations,policies,andfees. (Goals #1-4)

6. Provisionofinformationandeducationconcerningstewardshipofwaterresources. (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 EnvironmentandNaturalResources,Divisionof WaterQuality.Therefore, themajor emphasisofthe District’s 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 expectsteadyprogresstowardsrehabilitationofagedlinesandplannedreplacementofplantassets.

The remaining four objectives are strategies designed to complement the efforts to fulfill the requirementsofthepermitsinachievingtheDistrict’sgoals.Obviously,acompetent,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 resourceswithotherscanimproveservicedeliveryandreducecosts.

Financial Plan (continued)

Background of Entity (continued)

Finally, communication with and education of stakeholders is designed to result in wide-ranging improvementstoservicedelivery,customerrelations,andcostcontainment.

Using key objectives identified as critical to the District’s mission, Departments develop their individualinitiativesandobjectives,andtheperformancemeasuresbywhichtoassessprogress.As thebudgetsforeachdivisionordepartmentarepresentedinthenextsection,eachdepartmentalgoal willreferencethenumberoftheoverallDistrict’sgoal,objective,orthefiscalpolicysupported.Inthis way,eachdepartmentestablishesitsaccountabilityanddemonstratesthelinkagebetweenactivities andtheachievementoftheDistrict’sobjectives.

The Systems Services Division bears responsibility for maintaining the Collection System Permit (Objective#1)andtheWaterReclamationFacilityformaintainingtheDischargePermit(Objective#2). Details oftherequirementsofthesepermitsandrelatedperformancemeasurementsmaybefound in these respective departmental budgets in the “Operation & Maintenance Fund” section of this BudgetDocument.Theotherobjectiveshavenolegalorregulatorybasisbutareunderlyingprinciples of how the Board intends the District to carry out the primary mission and are referenced as appropriateinthedepartmentalgoalsandobjectives.

Rate Projections & Budgetary Forecast

TheDistrictisrequiredbyitsBondOrdertosetratesatsuchalevelthattheexcessofrevenuesover currentexpendituresequalsatleast120%ofdebtservice.TheBoardestablishedarevenuepolicythat thegoalfordebtcoverageratiobe150%or1.5,andsufficienttomeetalloperatingandcapitalneeds withmodestlevelincreases.

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 timingofdebtissuancebasedoncashflowlevelsanddebtcoverageratios.

Consumerrevenueprojectionsarebasedonconsumptionrates,growthinnumberoftapsduringthe previous year, and projected rate increase. Industrial revenue is developed from anticipated fees of actualindividualcompanies,sincetherearerelativelyfewindustrialcustomersandthechargesare determined by effluent strength, as well as volume, which may vary greatly depending on the particularentity.Astherearealimitednumberoflargecustomers,anymajorchangetoaparticular facility such as announced layoffs or closings, may be immediately factored into the industrial revenuecomputation.

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 aboveprevailingrates.Asthisforecastisupdatedatleastsemiannually,managementisabletoadjust timingofcapitalprojectsanddiscussinadvancewithBoardmembersproposedtimingandlevelsof rateincreases.

Usingconsumption dataprojectedfromtherecenthistoricalpopulationgrowth statisticswithinthe Asheville-BuncombeCountyarea,theDistrictanticipatesannualrateincreasesofapproximately5% forthenextnineyears.

Rate Projections & Budgetary Forecast (continued)

Construction costs are fairly level reflecting the District’s Master Plan to consistently rehabilitate approximately 40,000linear feet of pipe per year. TheCIP expenditure forecast for FY2025 reflectsa continuationofamajorrehabilitationprojectattheWastewaterTreatmentPlant.

Thislong-rangebudgetaryprojectionalsoshowshowtheDistrictplanstofinancetheseprojectswith acombinationofbondproceedsandpay-as-you-gofundingfromsewerrevenues.Overall,theten-year projection indicates theDistrict’s continuing ability to provide wastewater collection and treatment for customers,infrastructuremaintenancein accordancewithstateregulations,anddebtservicein compliancewithBondOrder,allwithminimal,uniformrateincreases.

Budgetary Forecast Based on Current Business Plan

Fiscal Policies

Overview

The Metropolitan Sewerage District of BuncombeCounty, North Carolina (the District) fiscal policies compiledbelowcomprisesthebasicframeworkfortheoverallfinancialmanagementoftheDistrict. ThesepoliciesassistBoardandManagement decision-makingandprovideguidelinesforevaluating bothcurrentandlong-rangeactivitiesandprograms.Theyarereviewedannuallyinconjunctionwith thebudgetaryprocesstoverifycontinuedapplicabilityandbenefittotheDistrict.

Theprimaryobjectivesofthesepoliciesare toensurethatmoderaterateincreaseswillbeadequate to provide current and future funds to support the District’s mission and goals; and to provide accountability for cost-effective stewardship of ratepayer’s funds to stakeholders through fairly presentedfinancialinformationsupportedbyfulldisclosures.

Revenue Policy

1. RevenueRecognition—Revenuesshallberecordedonthefullaccrualbasisinaccordancewith GenerallyAcceptedAccountingPrinciples(GAAP)forproprietarygovernmentalentities.

2. Setting User Charges—Charges for domestic and industrial sewer users shall be set at such a leveltoprovidesufficientrevenuestocoverallannualoperatinganddebtserviceexpenditures, toaccumulatefundsfortimelyacquisitionandreplacementofcapitalequipmentandfacilities, andtofinancethepay-as-you-goportionofthelong-termCapitalImprovementPlanasapproved bytheBoard.

3. Revenue Projections—To assist in setting annual user rate charges, District staff will prepare projectionsofrevenuesandexpendituresforaminimumoffiveyears.

4. Daily Deposits—Inaccordance withNCGeneralStatuesSection159-32,theBoardshall require daily deposits of receiptsonly when themoneys on hand amount to at least two hundredfifty dollars($250.00).Anyfundsnotimmediatelydepositedshallbeappropriatelysafeguarded.

Fiscal Policies

(continued)

Revenue Policy (continued)

5. Monitoring Revenue—District staff shall monitor revenues as billed and collected by participatingentitiesforreasonablenessandcompletenessandshallreporttotheBoardnoless thanquarterly.

6. Direct Billing—For those users who are billed directly by District staff, such bills shall be computedaccurately,recordedproperly,anddistributedinatimelymanner.

7. Billing Adjustments—The Billing Coordinator shall be authorized to create and post credit memorandafor adequately documented adjustments incurred by customers billeddirectly by theDistrict.TheBillingCoordinatormayalsomakeadjustmentsofupto$10tocorrecterrorsor removedisputedcharges.

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 accountsbilleddirectlybytheDistrictshallbesubjecttoreasonablecollectionefforts.

Aftersucheffortshavebeenexhausted,writingoffuncollectibleaccountsshallbeauthorizedas 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 shallprepareanannualreportingofbaddebtstobesubmittedtotheFinanceCommittee.

9. Authority for RevenueProcedures—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 compliancewithGAAPandStatelaw.Anychangestorevenueprocedureswillbereportedtothe FinanceCommitteeattheirnextmeeting.

Fiscal Policies (continued)

Operating Budget Policy

1. Funding—Debtorbondfinancingwillnotbeusedtofinancecurrentexpenditures.

2. Service Efforts and Accomplishments—The District will integrate performance measures and productivityindicatorsintoitsbudgetaryprocess.

3. Planning—The District will prepare a ten-year operating budget projection, which will include projectionsofannualgrowthplusallowancesforoperatingcostsofnewcapitalfacilities.

4. RiskManagement—TheDistrictwillutilizeariskmanagement programto protect againstloss 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. AuthorityforBudgetProcedures—TheDistrictwillpreparethebudgetinaccordancewithGAAP and the Local Government Budget and Fiscal Control Act (LGBFCA) established by the state legislature.

6. Periodic Reporting—TheFinance Department shall submit quarterly budget to actual financial reportstotheBoardofDirectorsandmonthlytoDivisionHeads.

7. BalancedBudget—TheDistrictshallsubmitabalancedbudgetwhereinbudgetedexpenditures 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 accumulatedfromprioryearsthatarepresentintheformofcashatthebeginningofthefiscal year.

Fiscal Policies (continued)

Asset Management Policy

1. Planning for Operational and Maintenance Assets—The District shall utilize an Equipment ReplacementReviewCommitteetoplanmajoroperationalandmaintenanceassetacquisitions onasystematic,comprehensive,andentity-widebasis.

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 processwillbecoordinatedwiththeplanningintheCapitalImprovementProgram.

Capital Improvement Policy

1. Planning—The District 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 SystemPermit.

2. Capitalization—The District willcharge engineering division salaries and relatedcosts usedto planforandoverseeconstructionofmajorinfrastructuretotheCapitalImprovementProgram.

3. Reporting—The District will provide annual reports of expenditures by project to the Capital ImprovementProgramCommittee.

4. Funding—The District will fund the construction program from revenue bonds and current revenuesincludinggrantsasavailable.

Accounting Policy

1. Authority for Accounting Procedures—The District will establish and maintain the accounting system according to the North Carolina Local Government Budget and Fiscal Control Act (LGBFCA),generallyacceptedaccountingprinciples(GAAP)forgovernments,andincompliance withapplicableprovisionsintheBondOrder.

Fiscal Policies (continued)

Accounting Policy (continued)

2. Annual Audit—An annual audit will be performed by an independent public accounting firm, whichwillissueanofficialopinionontheannualfinancialstatements,andamanagementletter indicatinganysuggestionsforimprovementorareasofconcern.

3. Transparency—Full disclosure will be provided in the financial statements and bond representations.

4. DueDiligence—TheDistrict will monitortheauditedfinancialstatementsof memberagencies andcomparewithreportsofrevenuesremittedtotheDistrictandaccountsreceivablebilledby membergovernments.

5. FinancialReporting—TheDistrictshallprepareanannualcomprehensivefinancialreport(ACFR) 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 Reportingaward.

6. WrittenAccountingProcedures—TheDistrictwillmaintaincurrentlyupdatedwrittenaccounting procedures

Debt Policy

1. Duration—Capitalprojectsfinancedthroughtheissuanceofbondsshallbefinancedforaperiod nottoexceedthelesseroftheexpectedusefullifeoftheprojectorthirtyyears.

2. Capitalization—Interest, operating, and/or maintenance expenses will be capitalized only for facilities of enterprise activities and will bestrictly limitedto thoseexpensesincurredprior to actualoperationofthefacilities.

3. Ratings—TheDistrictwillendeavortomaintainitsfinancialconditionatnolowerthanMoody’s “A1”andStandard&Poor’s“AA-”bondrating.

Fiscal Policies

(continued)

Debt Policy

(continued)

4. Unfunded Liabilities—The District’s debt policy extends beyond capital financing and includes notknowinglyenteringintoanycontractscreatingsignificantunfundedliabilities.

5. CoverageRatio—TheDistrictshallprepareanannualbudgettomaintainadebtratio(coverage) ofatleast1.5net revenuestobonded debt. This exceedstheminimum1.2 ratioassetforthin theBondOrder.

6. Compliance—The District shall follow terms and conditions of its Bond Order and any requirementsoftheLocalGovernmentCommission.

Cash Management and Investment Policy

1. Written Policy—The District Board’s investment policy, written to be in compliance with NC GeneralStatutesanditsBondOrder,shallbereviewedonanannualbasisbytheBoard’sFinance Committee.

2. Objectives—The primary objectives of investment activities, in priority order, shall be preservationofprincipal,liquidity,andyield.

3. Periodic Reporting—The District shall provide monthly investment reports to its Board and submitsemi-annualreportstotheNorthCarolinaLocalGovernmentCommission.

4. Treasury Services—The District shall consider the advisability of preparing a Request for Proposal(RFP)forbankingserviceseverythree(3)years.

Reserve Policy

1. Capital Reserves—The District 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 theBondOrder.Thisfundmaybeusedonlyfordebtservicepaymentsintheeventofinadequate revenuesorforunusualandextraordinaryrepairandmaintenanceexpenses.

Fiscal Policies

(continued)

Reserve Policy (continued)

2. Fleet & Heavy Equipment—The District shall maintain a Fleet & Heavy Equipment Fund for vehicles and rolling stock with avalue greater than $10,000. Periodic budgeted transfers from theoperatingfundalongwithproceedsfromsaleofequipmentshallbedepositedinsaidfund along with interest earnings to provide funding to replace vehicles on a systematic basis as required.

3. PlantEquipment—TheDistrictshallmaintainaWastewaterTreatmentEquipmentReplacement Fundforcapitalexpendituresof$10,000ormorewithausefullifeofatleast(3)years.Periodic budgetedtransfersfromoperationsareintendedtostabilizerateincreasesbyplanningfunding formajorrepairsandrehabilitations.

Purchasing Policy

1. Authority for Purchasing Procedures—The District will follow procedures and guidelines as prescribedbyNorthCarolinaGeneralStatutesandBoardapprovedresolutions.

2. Centralized Procurement—The District shall operate centralized purchase and warehouse functions to obtain materials, supplies, and services in the most cost-efficient manner for the District.

Budget Process

Budgetary Adoption

TheDistrict’sbudgetprocessmustcomplywithNorthCarolinaGeneralStatutesandtheMSDRevenue BondOrderasamendedtodate.TheBondOrderrequiresthattheDistrictadoptitsfinalbudgetonor 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 governingboardnolaterthanJune1andmandatesapublichearingbeheld.TheBondOrdercallsfor 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 systematicanddeliberateprocess.

For the Operations and Maintenance Budget, the process begins with the mission statement as approvedbytheBoard.EachDivisionorsectionoftheDistrictdevelopsaspecificmissionstatement 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 measuresareidentifiedandtrackedforthepreviousthreeyears.OncetheDistrictstaffdevelopsthe operationalactivitiesrequiredtoimplementthemission-directedstrategies,necessaryresourcescan bequantifiedandpresentedinabudgetaryformat.

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’smission,extraeffortismadetoensuresalariesandbenefitsarecompetitivewithoutbeing excessive.Tothisend,ahumanresourcesconsultantpreparesasalarysurveyeverythreetofiveyears that compares District pay scales with other utilities and governmental entities in the area. During thoseyears a consultant isnot retained,theHumanResourcesDirectorandotherstafftakesurveys among regional governments and wastewater utilities of intended increases and types/levels of benefitsconsidered.

Budget Process (continued)

Budgetary Adoption

(continued)

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 otheremployeebenefitprograms.Beforeapprovalofanynewpositions,theBoardmustbeconvinced ofthecost-benefit,efficiency,andprogrammaticbenefit.

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 treatmentplant,andtopreparethesystemtohandleexpectedfuturewastewaterflows.Engineering staff prepare annual estimates of expenditures over the life of projects in a proposed timetable for constructionina10-yearCapitalImprovementPlan(CIP).

Meanwhile,AdministrativestaffpreparesanupdateoftheDistrict’sten-yearfinancialforecastbased on estimated revenues, expenditures, and debt issuance, which is integrated with the 10-year CIP, alongwithprojectionsforfleetandwastewaterplantreplacementfunds.

Theeffect ofcurrent expendituresoncashflowsanddebtcoverageratiosareverifiedforadequacy, andanyindicatedadjustments toexpendituresaremadeto sustain serviceswithinthedesireduser ratelevels,whicharesetannuallyinconnectionwithbudgetadoption.

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 carryoveramounts.Authorityformodifyingtheseallocationsvaries.

Budget Process (continued)

Budget Administration (continued)

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 theirdepartmentswithoutlimitation.

Theentireallocationisavailableatthebeginningoftheyear,andtheunexpendedbalancewillremain available during the year, unless otherwise limited by the General Manager and Director of Finance duetocashflowconsiderations.

Several strategies are used to monitor expenditures throughout the year. The General Manager and DivisionDirectorsreceivemonthlyexpenditurereports,whichcompareactualtobudgetedamounts fortheperiodandfortheyeartodate.

In addition, the procurement software is designedto require approval from the General Manager or DirectorofFinanceifthelineitemhasinsufficientfundstocovertherequisitionoriftheexpenditure is over a certain amount. Purchasing staff make periodic reviews of outstanding inventory levels, requisitions,andpurchaseorderstoupdateavailableline-itembalances.

Budget Amendment

Budget Amendments require approval by the Board of Directors and as such are submitted through theagendaprocessforconsiderationataregularlyscheduledBoardmeeting.

Budget Calendar

Budgetary Basis of Accounting

The District accounts for its activities as an Enterprise Fund, which is similar to that of a private businesswherethecostsofprovidingwastewatercollectionandtreatmentonacontinuingbasisare recoveredprimarilyfromusercharges.Therefore,theaccrualbasisofaccountingisusedforfinancial reportingpurposes,whererevenuesare recognizedassoonastheyare earnedandexpenses atthe timetheliabilityisincurred.

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 currentperiod.Similarly,debtservicepaymentsandotherliabilitiesarerecognizedwhenpaymentis due because it is only at that time that they normally are liquidated with expendable available financialresources.

There are no significant differences between the full and modified accrual basis of budgeting for Districtrevenues,becausethemajorityofrevenuesarecollectedshortlyafterbilling,andassuch,are availabletopayperiodliabilities.Themajordifferenceresultingfromthemodifiedaccrualmethodis notedinbudgetingdebtserviceandcapitalexpenditures.

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, theTrusteewill have time to securepaymentforthebondholdersfromtheDebtServiceReserveFundforpaymentontheduedate. Therefore,theDistrictbudgetsfortheamountofprincipaldueonJuly1ofthesubsequentfiscalyear, butreportstheprincipalreductionpaidonJuly1ofthecurrentyearasreducingloanspayableinthe auditedfinancialstatements.

Capitaloutlays,whicharedefinedasequipmentorconstructionwithanacquisitionvalueover$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,andequipmentover$15,000arecapitalizedanddepreciatedoverfutureyears.

Budgetary Basis of Accounting

(continued)

The District does not budget for barter transactions such as the exchange of building space for laboratoryservices,butthefairmarketvalueofsuchtransactionsisreflectedasincomeandexpense intheauditedfinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples.

Theten-yearCapitalImprovementPlanpresentedinthisbudgetmanualdocumentstheDistrict’slongterm asset management strategy to achieve and maintain compliance with state environmental permitconditionsbutdoesnotauthorizeexpendituresforanyyearsbeyondthecurrentbudgetyear.

TheCapitalImprovementPlanidentifiesspecificprojectswithanticipatedexpendituresbrokendown by each year but based on the best estimates of the District. The General Manager is authorized to accelerate or postpone thestart 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 ConstructionFundforthatfiscalyear.

However,anyprojectsincludedinaCapitalProjectsOrdinancemayhaveexpendituresauthorizedfor theentireprojectcrossingfiscalyears,regardlessofwhencontractsaresigned,orcostsareincurred orpaid.

In accordance with the District’s Bond Order, separate accounts for debt service and extraordinary maintenancereserveshavebeenestablished.TheDistrictutilizesotherreserveaccountstominimize or moderate the effect of unanticipated largeexpenditures and substantial equipment replacement onrateincreases.

Fund Structure

For financial statement purposes, all the District’s transactions are reported in one enterprise fund. However,tobeincompliancewiththeDistrict’sBondOrder,whichprescribescertainproceduresfor financialplanningandbudgetaryprocess,theenterprisefundisdividedintoseveralfunds.

Appropriatedmajorfundswhoseexpendituresexceed10%ofthebudgetinclude: theRevenueFund 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, theInsuranceFundsthatprovidesfundingforSelf-fundedEmployeeMedical,General Liability, Worker’s Compensation, and Post-Employment, the Replacement Funds that provides fundingforFleet/HeavyEquipment, WRFequipment,andPumpMaintenance,theDebtServiceFunds.

Financialplansarepreparedforothernon-appropriatedfundswhoseexpendituresaredeterminedby external parties and contractual agreements, namely the insurance funds, debt reserve, and the capitalreservefund.

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,andmaintainingtheseweragesystemandwastewatertreatmentplant,which arepaiddirectlyfromtherevenuefund.Remainingrevenuesmaybetransferredasbudgetedtoother fundsforuseindebtservice,construction,oranyotherlawfulpurpose.

General Fund—The District may use funds from the General Fund for any lawful purpose. Due to theprovisionsofthe1985and1999BondOrders,theformerwhichprovidedthatoperatingexpenses 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 financingforconstruction.

Construction Fund—Thisfundwasestablishedin accordance with thebondordertoaccountfor construction projects funded by sewer revenue bonds. The fund is currently used to record expendituresofcapitalconstruction,regardlessoffundingsource.

Fund Structure (continued)

Insurance Funds—Financial plans for the four insurance funds–Self-Funded Employee Medical, General Liability, Worker’s Compensation, and Post Employment are includedin the FY2024 budget document. Each Department 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 overestimated cost. To ameliorate the effect of large unanticipatedlossesontheannualratesettingprocess,anyexcessofcostassessedoverclaimspaid isretainedbythefundasdesignatedforanydeficitinfutureyears.Therearenotrustdocumentsor other legal restrictions on these funds, and they are combined with other funds and accounts into oneenterprisefundforfinancialreportingpurposes.

Abriefdiscussionofeachfollow.

Self-FundedEmployee Medical—Revenuesconsistofbothemployeeandemployercontributions. Expenditures includecharges 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 incurredduringtheyearbutpaidaftertheyear-endoutsideoftheaggregatecoverage.

General Liability—The District purchases commercial coverage for Automobile, General Liability, PublicOfficialsLiability,andEmployeeBlanketBond.Eachyear,theEngineerofRecordreviewsthe adequaciesoftheDistricts’insurancecoveragetocomplywiththeDistrict’sBondOrder.

Reimbursementforeachlossisreducedbytheamountoftheparticularcoveragedeductible,sothe budgetedexpenditureincludesbothcontractualpremiumsandanestimateofthepotentialliability tobeincurredfrompayingthedeductibleamountoneachclaim.Anyexcessofamountstransferred fromtheOperationsandMaintenanceFundoverpremiumsanddeductiblesexpenseisretainedin thefundtobeappropriatedinafutureyearwithunanticipatedlosses.

Fund Structure (continued)

Insurance Funds (continued)

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 eventofunanticipatedlosses.

Post-Employment

—TheDistricthasestablishedapost-employmentinsurancefundtoaccumulate fundsnow,whichwillreducefutureoperationalexpenditureswhenretireesbegintakingadvantage ofthisbenefit.TheDistrictwillannuallyfundtheequivalentoftheannualrequiredcontributionless expensesasdeterminedbyanactuarialstudyasrequiredbyGASB45.

Equipment Replacement Funds—Three(3)equipmentreplacementfundsareincludedwiththe budget.Responsibledepartmentsareassessedproportionalamountstoprovideplannedfundingfor the systematic replacement of assets and to moderate the impact in any one year on sewer rates frommajorcapitalacquisitions.

Any excess of revenues over expenditures are retained in fund equity to provide for large future capitalexpenditures,andforreplacementorrepairofanymission-criticalequipmentresultingfrom anaccident,naturaldisaster,orotherunforeseeableevent.

Fleet & Heavy Equipment—The District owns a variety of vehicles including pickup trucks, specializedvans,dumptrucks,tankers,andexcavatingequipment,somecostingupto$250,000.The Fleet Supervisor and WRF Director are responsible for maintaining an inventory of all equipment including anticipated replacement dates and cost for all items. Departments are assessed determinedamountsintheannualbudget,whichareestimatedtoprovidefundingfornewvehicles whenthoseintheirusemaynolongerbeefficientlymaintained.

Fund Structure (continued)

Equipment Replacement Funds (continued)

Wastewater Treatment Plant—Various specialized machinery require replacement from time to time, usually at costs well in excess of what may be budgeted as routine maintenance. The WRF Director prepares 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.

Pump Maintenance—Variouslargepumpsrequirereplacementfromtimetotime,usuallyatcosts well in excess of what may be budgeted as routine maintenance. The SS Maintenance Director preparesa schedulebyyearofanticipatedmajorprojects neededtorefurbishorreplaceobsolete equipment.

Debt Service Funds—ThesefundsarerequiredundertheDistrict’sBondOrdertoaccumulateand transmitallDistrictdebtservicepayments.

Revenue Bond Fund—Thisfundisusedtoaccumulateperiodicdepositsfromtherevenuefundto payprincipalandinterestasscheduled.

Capital Reserve Fund—Whiletechnicallynotadebtservicefund,thisfundismandatedbytheBond Order to contain six percent (6%) or such greater percentage, as may be determined from time to timebytheBoard,oftheamountshownbytheannualbudgettobenecessaryforcurrentexpenses forthecurrentfiscalyear.Asthisfundistobekeptforunusualandunforeseenexpenditures,none isincludedinthefinancialplanascomingfromthisaccount.

Flow of Funds – Bond Order

Budget Summary

TheDistrictutilizesafundstructuredevelopedtoaccommodatemandatesoftheDistrict’sBondOrder 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 whichoperationalandmaintenanceexpendituresaremade, theGeneralFundthattransferspay-asyou-go funding authorized for construction, the Construction Fund that incorporates CIP expenditures, the Replacement Funds providing funding for Fleet, WRF, and Pump Stations equipment,and DebtServiceFunds.

Financial plans are approved for those other funds whose expenditures are determined by external partiesorcontractualagreementssuchastheinsurance,debtreserve,andcapitalreservefunds.

The budget summary chart below shows total activity for all funds and consolidates the effect of transfersbetweenfunds.

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

Component Fund Chart

Thefollowingchartshowsrevenues,expenditures,andtransfersbyindividualfundandprovidesthe detailsupportingthesummaryamounts.

Funding comes primarily from the Revenue Fund, from which Operations and Maintenance expenditures are paid. Revenues are transferred to other funds, including construction, insurance internalfunds,debtserviceandreplacementreservefunds.Infrastructureover$15,000iscapitalized andbudgetedthroughtheConstructionFund.Capitalizedequipmentsuchastrucksandrollingstock are budgeted through the Fleet Replacement Fund and capitalized equipment such as pumps and plantmachinery arebudgetedthroughtheWaterReclamation FacilityReplacementFund.Whilethe O&Mbudgetcontainslineitemsentitled“CapitalEquipment,”whilesuchexpendituresarebelowthe capitalization threshold, they are in excess of $1,000 and budgeted and tracked internally for managerialpurposes.

Component Fund Chart (continued)

Thefollowingchartshowsrevenues,expenditures,andtransfersbyindividualfundandprovidesthe detailsupportingthesummaryamounts.

NowthattheDistricts’financialoverviewhasbeenpresented,wewillexaminerevenuesandvarious expendituresindetail.

Revenue

Overview

The District has the authority to establish rates and charges for service to be approved by a budget resolutionoftheDistrictBoardofDirectors.TheDistricthasestablishedseparateratesfordomestic andindustrialcustomers,adopted aschedule offacilityandsewerconnectionfeesapplyingto new customers, and receives minor amounts of income from rental of real property and investment of surpluscash.Thevarioustypesofrevenuesandotherfinancingsourcesaredescribedindetailonthe followingpages.

Agraphofhistoricalrevenuesbytyperevealstheoverwhelmingpercentageof theDistrict’s income derives from domestic (residential & commercial) customers and has increased for the past ten consecutive years. Industrial user fees clearly show the effect of the shrinking textile industry in BuncombeCountyandarediminishingaslargerindustrieswinddownandarereplacedwithsmaller new enterprises. Facility and tap fees testify to the growth fueled by population in-migration and expansion of non-industrial type businesses. Overall, income for FY2024 is estimated to be slightly higherthaninFY2023.

Revenue (continued)

Revenue Summary

When projecting FY2025 revenues, a 5.00% domestic customer rate increase was considered in conjunctionwithaprojected.75%increaseindomesticconsumption.Inaddition,thebudgetreflects nogrowthinindustrialusers.Conservativeassumptionsbasedonrecentincometrendsunderlieother budgetedincomeamountsasexplainedbelow.

Domestic User Charges

TheprimarysourceofDistrictrevenuesaredomesticcharges.TheDistricthasapproximately59,000 accounts.TheDistrictdirectbillsapproximately600ofthesedomesticusersallofwhichareonprivate well systems but are connected to MSD’s sewer collector system. Billing and collection of the remainderofDistrictdomesticcustomersisperformedbythememberagenciesprovidingwater,who chargeafeeforthisservice,whichisaddedtothemonthlybillandpaidbyMSDcustomers.

Revenue

(continued)

Industrial User Charges

PriortoFY2001,industrialuserswerechargeddecreasingtieredratesbasedontotalvolumesothat 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 upcomingtwentyyears.Theannualincreasesfromthisparityplanareincorporatedinadoptedrates.

Fortunately, the number of new residential customers continues to increase which is anticipated to mitigatetheimpactfromthedeclineofindustrialrevenue.

Investment Interest

ThisrevenuesourcereflectsinterestearnedonpublicfundsheldbytheDistrictandtheRevenueBond Trustee. Investment income is determined by interest rates and cash balances available for investment. Interest rates increased rapidly during the current year due to adverse economic conditions.Theprojectedyieldforthecurrentfiscalyearwillbe4.00%.

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.

Sewer System Development Fee

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, theboarddeterminedtoimplement20%ofthisincreaseovereachofthesubsequentfiveyears.

OnJuly20,2017theNorthCarolinaGeneralAssemblypassedintolawNorthCarolinaGeneralStatute 162A Article 8 (“Article 8”). Article 8 provides for the uniform authority to implement system developmentfeesforpublicwaterandsewersystems.InFY2024,RaftelisFinancialConsultants,Inc. wasengagedtoperformastudywhichconformstotheconditionsandlimitationsofArticle8.

Revenue (continued)

Sewer System Development Fee (continued)

EffectiveinFY2025,sewerfacilityfeesrangedfrom$844to$3,568forresidentialusersbasedonsize ofstructure,andfrom$3,568to$945,452fornonresidentialcustomersbasedonmetersize.

Sewer Connection Fees

Thisrevenuesourcerepresentsthecostofphysicallyinstallingnewconnectionstothesewersystem. Thecostforinstallingatapthatdoesnotinvolvepaymentrestorationis$1,300. Thisfeeistoprovide connections to the MSD system where the public main is on the same side of the street as the residence.

TheSewerConnectionFeewillapplytonewhomeconstruction,aswellasexistinghomes,whichhave beendemolishedorremodeled,andsewerserviceisreinstatedundernewpropertyownership.MSD requires that a licensed utility contractor install any sewer connection/service line within public rights-of-wayextendingover75feetorthatrequirespavementdisturbanceorboringtoreachacross apavedthoroughfare.TheinstallationshallbeconstructedtoMSDStandards. Allworkwillbesubject toMSDinspection.

Billings & Collections

TheDistrictwillpaythemunicipalities$2.93percustomerbillformeterreading,billing,andcollection services.

Rental Income

Pace Analytical Services, Inc. has entered into a lease to utilize a portion of a building in the WastewaterTreatmentPlantfacilitiesalongwithlaboratoryequipment.TheDistrictalsoleasesland toaprivatecompanyforacelltower.

Thispageintentionallyleftblank.

 Operation & Maintenance 

Operation & Maintenance Fund

Organizational Chart

Operation & Maintenance Fund (continued)

Overview

TheOperation&MaintenanceFundbudgetfinancestheprogramandadministrativeactivitiesforthe wastewater treatment plant, pump stations, and collection system. The FY2025 Operation & MaintenanceFundbudgettotals$22,787,889.Thisrepresentsa3.87%increaseoverthepreviousyear.

TheDistrictbudgetstotheDepartmentallevelandareasfollows:

Less: Capitalized in Construction Funds (5,607,204)

Operation & Maintenance Fund (continued)

Themajorfactorsthatimpactouroperatingandmaintenancebudgetinclude:

1. RepairsandMaintenance—AmajorityoftheDistricts'approximately1,155milesofcollection linesarebetweenthirtyandonehundredyearsold.Whilemanycapitalprojectsareplanned 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 formaintenance of equipment, buildings, and grounds aswell asfor inhousesewerlinerepairandmaintenance.

2. SalariesandBenefits—A3.7%salaryadjustmentaswellasa0%increasefortheSelf-Funded Health Insurance Plan. Personnel costs representover63%ofthe Operating and Maintenancebudget.

3. Post-EmploymentHealth Benefit—Startingin FY2009,GASB45required therecognitionofcostfor Post-EmploymentHealthBenefits.Currentfundingrepresents1.4%oftotaloperations.

FY2025 Budget – All Departments Summary

Salaries&Wages

51100Salaries&Wages8,838,699$8,812,963$9,784,130

$10,505,074$100.00%11,081,260$5.48% 51150Overtime228,385236,235255,895351,600351,600100.00%351,6000.00%

TotalSalaries&Wages9,067,0849,049,19810,040,02410,856,67410,856,674100.00%11,432,8605.31%

Benefits

51200NorthCarolinaRetirement945,2431,036,0561,222,6201,399,4261,399,426100.00%1,559,44211.43% 51250PayrollTaxes666,404671,220752,625830,534830,534100.00%874,6155.31% 51300Medical,Dental&Life2,478,4412,639,5402,811,1102,993,8402,993,840100.00%2,993,8400.00% 51325PostRetirementInsurance283,000276,555283,000283,000283,000100.00%283,0000.00% 51350Worker'sCompensation273,000273,000273,000273,000273,000100.00%273,0000.00% 51360StateUnemploymentBenefits2,15032332,56032,560100.00%32,5600.00% 51450AutomobileAllowance3,6003,6004,5103,6003,600100.00%3,6000.00%

51500401-K/457Plan403,299411,949441,422525,260525,260100.00%554,0705.48% TotalBenefits5,055,1385,312,2445,788,2876,341,2206,341,220100.00%6,574,1273.67% TotalSalaries,Wages&Benefits14,122,22214,361,44215,828,31117,197,89417,197,894100.00%18,006,9874.70%

Materials,Supplies&Services

52010Advertising12,15727,69212,93538,00037,70099.21%33,000-13.16% 52050Dues&Subscriptions54,88348,44155,60468,85966,55996.66%65,601-4.73% 52100Postage13,97810,07710,73914,00014,000100.00%14,0000.00% 52150Travel,Mtgs&Training60,590114,963151,292222,310221,31099.55%236,0536.18% 52160TuitionAssistance6832,7383,7049,0009,000100.00%5,000-44.44% 52170DirectorsFees&Expenses19,85818,39917,61222,00022,000100.00%22,0000.00% 52180LiabilityInsurance547,746602,521662,775662,775662,775100.00%662,7750.00% 52200Telephone/Telefax43,94524,50925,83130,20030,200100.00%30,3000.33% 52210Communications112,951124,267127,473156,496146,77693.79%157,3200.53% 52240Uniforms67,99167,75680,03394,29294,13599.83%97,6603.57% 52250OfficeSupplies16,51715,74815,43623,20022,85098.49%23,7002.16% 52260SpecialDeptSupplies369,374368,678372,241499,116494,92099.16%495,590-0.71% 52270SafetyEquip/Supplies52,06765,39380,69691,10090,50099.34%90,500-0.66% 52280MaintSupp/SmallTools121,363116,553115,444154,650154,50099.90%154,200-0.29% 52290ChemicalSupplies408,502341,289623,0581,513,887904,00059.71%1,320,500-12.77% 52300LineCleaningSupplies49,67544,20752,61455,75055,750100.00%55,7500.00% 52330LegalFees24,59314,86020,32738,10038,100100.00%38,5001.05% 52350Prof/ContractualSvcs478,081462,439596,003695,706666,36895.78%852,50922.54% 52410Maint-Buildings&Grounds191,120208,337238,012277,500277,500100.00%291,5005.05% 52420Maintenance-Equipment463,812357,184385,331516,500516,500100.00%518,5000.39% 52430LandscapeRestoration8,5028,14711,90713,70113,70099.99%13,700-0.01% 52440PumpMaintenance82,51987,00584,855112,500112,500100.00%112,5000.00% 52450EquipmentRental16,6338,7036,75841,50041,500100.00%41,5000.00% 52460MotorFuel&Lubricants127,190217,277233,475290,000290,000100.00%310,0006.90% 52470OutsideVehicleMaint16,35123,23745,56230,00025,00083.33%30,0000.00% 52500Rents/Leases44,42948,15947,40556,00056,000100.00%56,0000.00% 52510Permits/Fees/SoftwareLicenses283,688290,853310,286406,654385,65494.84%427,9615.24% 52650Utilities958,1841,308,4411,484,6631,515,0001,515,000100.00%1,680,00010.89% 52690Freight5,3917,9269,85110,00010,000100.00%10,0000.00% 52715SafetyIncentiveProgram1,3932,1661,7052,5002,500100.00%2,5000.00% 52725WellnessProgram4423,0198,6427,5007,500100.00%7,5000.00% 52730EmployeeAsstProgram4,3554,3555,0005,5005,500100.00%6,0009.09% 52900OtherOperatingExpenses4,8103901,0832,0001,50075.00%2,0000.00% 52910Non-CapitalEquipment77,04165,693101,907126,085106,08584.14%113,397-10.06% 52915CopiersPrinters&Faxes-5,0005,000100.00%5,0000.00% 52920Billing&Collections983,0581,021,4571,060,4761,157,4741,157,474100.00%1,203,7734.00% TotalMaterials,Supplies&Services5,723,8776,132,8817,060,7348,964,8558,260,35692.14%9,186,7892.48% InterfundTransfers

52340DebtAdministrationExpenses132,255122,582110,847141,063141,063100.00%133,492-5.37% 53040FleetReplacementCharges500,000595,000595,000595,000595,000100.00%595,0000.00% 53050WWTPReplacementCharges200,000200,000200,000250,000250,000100.00%250,0000.00% 53070PumpReplacementCharges50,00055,00055,00060,00060,000100.00%60,0000.00% TotalInterfundTransfers882,255972,582960,8471,046,0631,046,063100.00%1,038,492-0.72% CapitalOutlay

54010CapitalEquipment-New63,65829,13847,24144,95044,950100.00%67,60050.39% 54020CapitalEquip-Software54030CapitalEquip-Replacement64,14340,341100,02066,24866,248100.00%95,22543.74% TotalCapitalOutlay127,80069,479147,261111,198111,198100.00%162,82546.43%

Sub-TotalO&MFund20,856,154

59200LESS: ChargebackstoGeneralFundforCIP(2,655,960)(2,659,532)(2,875,271)(3,281,040)(3,261,952)99.42%(3,404,838)3.77% ChargebackstoGeneralFundforSSD(1,782,378)(1,702,644)(1,943,292)(2,099,230)(2,099,230)100.00%(2,202,366)4.91%

NetOperation&MaintenanceFund16,417,816

Office of the General Manager

Organizational Chart

Office of the General Manager (continued)

Mission Statement

The mission of Office of the General Manager is to provide overall direction, leadership and coordinationoftheDistrict andDepartmentactivitiestoensurethatthemostefficientandeffective servicespossibleareprovidedwithinthepoliciesestablishedbytheDistrict’sBoardofDirectorsand theresourcesauthorized.

Key Responsibilities

CarryoutpoliciesanddirectivesoftheBoard.MonitorandcontrolresourcestoensurethattheDistrict isoperatedina responsibleand cost-efficient manner.Operateand maintain areliablewastewater, collection,andtreatmentsystem.Maintaineffectivecommunicationsandrelationshipswithmember 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.Overseeintermediateandlong-rangeplanning.Reviewandsubmittheboardandcommittee agenda items; prepare minutes for board meetings; coordinate travel arrangements for board membersandstaff;providepublicrelationsassistance.

Staffing History

Office of the General Manager

(continued)

Accomplishments for FY 2023-2024

 Incorporated$610Million10-yearCIPforMSDwhilekeepingrateestimatesat5%.

 CIP includes $388 million for Treatment Plan/Pump Station to meet future regulations and growthfornext50years.

 FinalDesignofCarrierBridgePumpStation($85million)underwaynowthatenvironmental permittingofrivercrossingsiscomplete.

 Replacedorrehabbedapproximately40,000feetofsewerline

 Incorporated$100millionInterceptor&Storageimprovementsfor50-yearplanningperiod

 Keptresponsetimetoallcustomercallstolessthan35minutes

 ISORecertificationforentireorganization

Budget Highlights/Changes for FY 2024-2025



 5.0%rateincreaseforcustomers.



 3.7%wageincreaseforemployeesforCostofLivingAdjustment(COLA).



 AdjustmentstolowerpaidemployeestokeeppacewiththeLivingWageforBuncombeCounty.



 Keeprateincreaseslowandconsistentbasedonlong-termfinancialmodel



 IncludescompletingCapitalImprovementsofapproximately$37.5Million



 Reflects0%increaseinmedicalplancontributions



 Includes5.8%increaseinstaterequiredcontributionsfortheNCRetirement

Goals & Objectives

 Goal:OverseecompliancewithallState&Federalrequirementsforcollection,treatment,and disposalofwastewater.(MSDObjectives#1&2)

 Goal:ManageDistrictinafinanciallysoundmanner.(MSDGoal#3)

 Goal:ImplementDistrictprogramsinaccordancewithBoardapprovedschedules,asmodified fromtimetotimeasappropriatetoprovideprojectflexibilityandaccommodateongoing changesinthecommunity.(MSDGoal#4)

 Goal:Managecommunityrelationsandeducationefforts.(MSDObjective#5)

 Goal:Establishdepartmentalgoals&objectives.(MSDGoal#4)

Office of the General Manager (continued)

Performance Measures

1. Oversightofcompliancematters—seeperformancemeasuresforSystemsServicesandWater Reclamationfacilitydepartments

2. Fiscalmanagement—seeperformancemeasuresforFinanceDepartment

FY2025 Budget – Office of the General Manager

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages213,238$204,179

TotalSalaries&Wages213,238204,179241,235239,556239,556100.00%248,4193.70%

Benefits

51200NorthCarolinaRetirement22,20224,67328,18830,87930,879100.00%33,8859.73%

51250PayrollTaxes11,04011,65613,88918,32618,326100.00%19,0053.71%

51300Medical,Dental&Life16,30617,36618,49319,69619,696100.00%19,6960.00%

51325PostRetirementInsurance1,8621,8621,8621,8621,862100.00%1,8620.00%

51350Worker'sCompensation1,7961,7961,7961,7961,796100.00%1,7960.00% 51360StateUnemploymentBenefits14-215215100.00%2150.00%

51500401-K/457Plan10,11910,49111,35611,97811,978100.00%12,4213.70%

TotalBenefits63,34067,84375,58484,75284,752100.00%88,8804.87%

TotalSalaries,Wages&Benefits276,578272,023316,819324,308324,308100.00%337,2994.01%

Materials,Supplies&Services

52010Advertising4,86110,75712712,00012,000100.00%12,0000.00% 52050Dues&Subscriptions12,4007,37810,01912,00010,00083.33%10,000-16.67% 52100Postage13,97810,07710,73914,00014,000100.00%14,0000.00% 52150Travel,Mtgs&Training426152,4766,0006,000100.00%6,0000.00% 52170DirectorsFees&Expenses19,85818,39917,61222,00022,000100.00%22,0000.00% 52180LiabilityInsurance105,099115,609127,170127,170127,170100.00%127,1700.00% 52210Communications2,5501,8701,8782,0002,000100.00%2,20010.00% 52250OfficeSupplies568132190080088.89%9000.00% 52260SpecialDeptSupplies595172646300300100.00%40033.33% 52270SafetyEquip/Supplies824------52330LegalFees14,1448,52413,16027,00027,000100.00%27,0000.00% 52350Prof/ContractualSvcs21,75621,10238,30424,00024,000100.00%29,00020.83% 52410Maint-Buildings&Grounds144,391159,085175,762201,000201,000100.00%215,0006.97% 52420Maintenance-Equipment-------52500Rents/Leases4,1483,2893,3425,0005,000100.00%5,0000.00% 52510Permits/Fees/SoftwareLicenses184192364400400100.00%4000.00% 52650Utilities74,21690,537101,208115,000115,000100.00%130,00013.04% 52690Freight5,3917,9269,85110,00010,000100.00%10,0000.00% 52900OtherOperatingExpenses4,8103901,0832,0001,50075.00%2,0000.00% 52910Non-CapitalEquipment-------52920Billing&Collections983,0581,021,4571,060,4761,157,4741,157,474100.00%1,203,7734.00% TotalMaterials,Supplies&Services1,412,3091,478,0611,574,5391,738,2441,735,64499.85%1,816,8434.52%

InterfundTransfers

53040FleetReplacementCharges8,71510,37110,37110,37110,371100.00%10,3710.00% TotalInterfundTransfers8,71510,37110,37110,37110,371100.00%10,3710.00%

CapitalOutlay

54010CapitalEquipment-New-------TotalCapitalOutlay--------

Sub-TotalO&MFund1,697,6011,760,4541,901,7292,072,9232,070,32399.87%2,164,5134.42%

Human Resources

Organizational Chart

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-orientedworkforce.

The mission of the Payroll and Employee Benefits Division is to process bi-weekly payroll for the Districtemployeesandtoprovideanattractiveemployeebenefitspackageatareasonablecosttothe Districtandemployees.

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 governingenvironmentalhealthandsafety.

Key Responsibilities

Human Resources—Includes compliance with all Federal/State regulations and MSD Personnel Policies; coordinate recruitment process and new employee orientation; coordinate employee sixmonthandannualevaluations;maintainemployeepersonnelfiles;coordinateupdatestopersonnel pay plan & job descriptions; maintain positive employer-employee relations and develop training programforsupervisors.

Payroll & Benefits—Includes bi-weekly processing of payroll and related reports; administering the followingbenefits:groupmedical,dentalandlifeinsurance;socialsecurity,NorthCarolinaRetirement Defined Benefit Plan, 401(k) and 457 Defined Contribution Plans, Section 125 Cafeteria Plan, and voluntaryemployeedeductionssuchascancer,disability,andlifeinsurance.

EnvironmentalSafety—ToensureDistrictcompliancewithlawsofregulatoryagenciessuchasOSHA, theNorthCarolinaDepartmentofTransportation,andEPA;toreducelossestotheDistrictsuchashigh worker’s compensation premiums, lost production time, damage to property, etc.; and to promote awarenessofandparticipationinenvironmental,healthandsafetyamongallemployees.

Human Resources (continued)

Staffing History

Accomplishments for FY 2023-2024

 ChangedourHRISsystemfromSagetoNavision.

 Changedvendorforpre-employmentbackgroundchecks.

 Providedtrainingonretirementandsocialsecurity.

 Re-vampedourWellnessProgram.

 Startedacommunityserviceprogram.

 ReplacedoldAEDinMullbuildingandadded6AEDstoMSDfacilities.

 ELDT(CDL)programupandrunningasof08/23.

 NewFlaggerInstructor,ForkliftInstructor,andCPR/AED/FirstAidInstructorsaddedtoMSD’s TrainingStaff.

 NoFederal/StateOSHA/DOTViolations.

 ModifiedandupdatedsomewrittenprogramsbasedonOSHAchanges.

Human Resources (continued)

Budget Highlights for FY 2024-2025



 UpdateEmployeeHandbook.



 DevelopandtrainemployeesonActiveShooterDrillthroughoutthedistrict.



 ObtainanewTPA(ThirdPartyAdministrator).



 Updatetoanewsafetydatabaseforeasiertrackingoftraining.

Goals & Objectives

 Goal:Providesupervisoryleadershipdevelopmenttraining(MSDObjective#3)

 Objective: Provideappropriatetrainingsessionsforemployees

 Goal:Trainsupervisorsinimprovingemployeerelationsandmanagingemployeepersonnel issues(MSDObjective#3)

 Goal:Keeppersonnelpoliciesuptodate(MSDObjective#3)

 Objective: Review20%ofpoliciesperyear

 Goal:Keepjobdescriptionsuptodate(MSDObjective#3)

 Objective: Review20%ofjobdescriptionsperyear

 Goal:Processpayrollinatimelyandaccuratemanner(MSDObjective#3)

 Objective: Noerrorsinpaychecks

 Goal:Promoteefficientutilizationofemployeebenefits(MSDObjective#3)

 Objective: Providequarterlyeducationorupdatestoemployeesconcerningdifferenttypes ofbenefitsorotherpersonalfinancialissues

 Goal:Promoteefficientutilizationofemployeebenefits(MSDObjective#3)

 Objective: Resolveemployeepayrollandbenefitconcernswithintwobusinessdays

Human

Resources (continued)

Goals & Objectives (continued)

 Goal:ToguardtheoccupationalhealthandsafetyofMSD’sworkforce(MSDGoal#1)

 Objective:Maintainan“IncidentRate”belowindustrystandardsof5.30per100employees.

 Objective: Toensurecompliancewiththefollowing: Federal/StateOSHA,NFPA,NCDOT, EPAandFMCA.Promotesafetyfocusedtrainingandcomplianceinspections.HaveZero(O) OSHAviolations.

 Objective: Continuouslyevaluatecurrentsafetypracticesandimprove/changeasneeded.

 Objective: Focusonplantinvolvementinallareas

 Objective: StayabreastofchangesandregulationsandhowtheyapplywithMSD

 Objective: Managesafetyrelatedcontractualeffortsincludingdrugtesting,hoisttesting, fireprotection,andgaslineinspections.

 Goal:Maintainfullcompliancewithallapplicablelegalrequirementsandgovernmental standards.

 Objective:Havezero(0)OSHAviolations

 Objective:Stayabreastofchangesandregulationsandhowtheyapplytothedistrict

Human Resources (continued)

FY2025 Budget – Human Resources

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages385,458$384,326$411,015$485,200$485,200$100.00%531,074$9.45%

51150Overtime--14-----

TotalSalaries&Wages385,458384,326411,029485,200485,200100.00%531,0749.45%

Benefits

51200NorthCarolinaRetirement40,14444,12649,82262,54362,543100.00%72,43815.82%

51250PayrollTaxes28,87230,77434,16137,11837,118100.00%40,6279.45%

51300Medical,Dental&Life114,139121,558129,460137,876137,876100.00%137,8760.00%

51325PostRetirementInsurance13,03313,03313,03313,03313,033100.00%13,0330.00% 51350Worker'sCompensation12,57312,57312,57312,57312,573100.00%12,5730.00% 51360StateUnemploymentBenefits99--1,4991,499100.00%1,4990.00% 51500401-K/457Plan18,96418,74019,67524,26124,261100.00%26,5549.45%

TotalBenefits227,824240,803258,724288,903288,903100.00%304,6005.43%

TotalSalaries,Wages&Benefits613,282625,129669,752774,103774,103100.00%835,6747.95%

Materials,Supplies&Services

52010Advertising3,90710,0468,01215,00015,000100.00%10,000-33.33% 52050Dues&Subscriptions4,2494,4014,7906,5056,505100.00%6,6001.46% 52150Travel,Mtgs&Training7,5989,73717,31023,00022,00095.65%23,4752.07% 52160TuitionAssistance6832,7383,7049,0009,000100.00%5,000-44.44% 52180LiabilityInsurance1,6951,8642,0502,0502,050100.00%2,0500.00% 52210Communications21,17418,01619,42826,06026,060100.00%26,0600.00% 52240Uniforms7721,5787801,3851,385100.00%1,4857.22% 52250OfficeSupplies2,6812,6692,8223,4503,450100.00%3,4500.00% 52260SpecialDeptSupplies2,0041,8741,0333,8003,800100.00%3,8000.00% 52270SafetyEquip/Supplies9,28114,16820,99723,00023,000100.00%23,0000.00% 52280MaintSupp/SmallTools-------52330LegalFees10,0195,7704,2508,0008,000100.00%8,0000.00% 52350Prof/ContractualSvcs46,28350,986118,287125,630125,630100.00%129,1752.82% 52410Maint-Buildings&Grounds---500500100.00%5000.00% 52420Maintenance-Equipment112,6192,7116,0006,000100.00%6,0000.00% 52510Permits/Fees/SoftwareLicenses676739100100100.00%1000.00% 52715SafetyIncentiveProgram1,3932,1661,7052,5002,500100.00%2,5000.00% 52725WellnessProgram4423,0198,6427,5007,500100.00%7,5000.00% 52730EmployeeAsstProgram4,3554,3555,0005,5005,500100.00%6,0009.09% 52910Non-CapitalEquipment18,32310,0769,05415,82815,828100.00%22,17740.11%

TotalMaterials,Supplies&Services134,939146,149230,616284,808283,80899.65%286,8720.72%

InterfundTransfers

53040FleetReplacementCharges2,2542,6832,6832,6832,683100.00%2,6830.00%

TotalInterfundTransfers2,2542,6832,6832,6832,683100.00%2,6830.00%

CapitalOutlay

54010CapitalEquipment-New-2,499----6,000TotalCapitalOutlay-2,499----6,000-

Sub-TotalO&MFund750,474776,460903,0511,061,5941,060,59499.91%1,131,2296.56%

Information Technology

Organizational Chart

Information Technology (continued)

Mission Statement

Toprovideinformationtechnologysupport,training,management,anddevelopmentthatwillbenefit the District divisions by facilitating completion of work objectives, improving communication, and creatingbetterandeasieraccesstoinformation.

Key Responsibilities

Information Technology (IT)—Support new systems development based on the plans of the District divisions.Provideongoingsupportandenhancementstomajoron-lineoperationalandadministrative systems. Maintain the existing computer equipment and data communications network. Plan and manage the acquisition and installation of new computer equipment, software, and peripherals. Providecomputerequipmentsupport,includinginstallations,moving,andtroubleshooting.Develop newsoftwareapplicationstomeetspecificMSDneeds.Providedailyoperationsandproductsupport. Develop long-range goals for computer systems development. Support responsibilities also include the telephone system, radio system, and process control equipment at the Plant. Offer computer softwaretrainingprogramsforDistrictstaff.AllITworkdone100%in-house.Novendororcontractors usedforITsupport.

GeographicalInformationSystems(GIS)—Develop,manage,andmaintaindatasetsanddigitalmaps relatedtotheoperationsoftheDistrict.Providedataaccessanddataanalysisservicesforalldivisions.

Coordinate the acquisition of updated information from the field, external sources (such as other governmental agencies), and the Engineering Division and incorporate it into the GIS data sets. Develop,maintain,andtrainothersintheuseoftoolsforaccessingspatialinformationtosupportall Districtactivities.

Information Technology (continued)

Staffing History

Accomplishments for FY 2023-2024

 Providedon-goingtraining,support,andapplicationcustomizationtoalldivisions.

 Increased CityWorks report library for multiple divisions, SQL automation processes, and numeroussoftwarecustomizationsforMSD.

 ReplacedBoardRoomTVandvideoconferenceequipmentduringrenovation.

 CompletedrolloutofAdvancedMulti-FactorAuthentication(MFA)forallservers.

 SecuredwirelessaccessonMSDcampuswithrotatingpassphrases.

 ImplementedIrthsystemtoreplaceWebTMSfor811Locatesservice.

 ImplementedBeyondTrustremoteaccess softwareforsecurevendorconnectionstotheMSD network.

Information Technology (continued)

Accomplishments for FY 2023-2024 (continued)

 ReplacedTeledyneTCemissionsmonitoringsystematthePlant.

 Migratedtoanencrypted,cloud-basedpasswordmanagerforITsystems.

 ITledtrainingforbeginning/intermediateclassesinExcelforMSDemployees.

 Over1000ITHelpDeskassistsforMSDemployees.

 Upgradedmultipleservers,backupschedules,storagevolumesandtheirassociatedsoftware. 25+laptops,tabletsandPCsconfiguredanddeployedforMSDemployees.

 AssistedwithselectionandprovisioningofnewNC811ticketingsystem.

 UpdatedNC811mapdata.

 AdaptationofI-26projectdataforusebyMSD.

 OngoingconversionfromArcMaptoArcGISProfordesktopusers.

 Began adaptation of MSD’s custom application library and automated systems to work with ArcGISProdevelopmentenvironment.

 DevelopmaplayersforMSDrevenuesharingprograms.

 Participatedinpresentationsformapapplicationuseandin-housegeneralinstructionclasses.

 Mapped changes to subterranean infrastructure, such as new fiber optic and telephone lines, aroundMSDcampus.

 Made improvements to GIS system to accommodate changes in data acquired from other agencies.

 Conducted system-wide accuracy verification and improvement using high-accuracy GNSS measurements.

 Photographicinspectionofsewerinfrastructure.

 Updated MSD’s information on population served using 2020 US Census Bureau data, as modifiedbyUSCensusBureauprojectionforthefiscalyear.

 Improved the quality and accuracy of billed service locations through improved coordination withCityofAshevilleandTownofWeavervilleITstaff.

 Providedusersupportfordesktop,internet,andmobileapplications.

 ProvidedstafftrainingonMSDGISsystemsanddataproducts.

Information Technology (continued)

Goals & Objectives

 Goal:ProvideallMSDstaffwithoutstandingcustomerservice.

 Goal:Toprovideon-goingtraining,support,andapplicationcustomizationtoalldivisions

 Objective:ContinueimplementationandsupportofCityWorkssoftwareintoalldivisions

 Objective:ContinueusersupportforMSDWeb,Mobile,andDesktopGISusers

 Objective: Expand web and mobile solutions to help streamline field navigation and workflowswhereneeded

 Objective: Staff training to enable GIS work order submittal through CityWorks (things like fieldeditsandtapmaprequests;thishasbeenanunderutilizedpossibilitysinceCityWorks wasinuse)

 Objective:Participateinpresentationsformappinguseinwastewaterclassesandin-house generalinstructionclasses.

 Goal:Maintaintheservers,network,email,websites,publicmapaccess,phones,copiers,fax machines,printers,andsecuritysystems

 Objective:Replaceagingserversanddesktophardwareasneeded

 Objective:Continuetestingandresearchinginpreparationforupgrades,includingWindows, Server,CloudComputing,andStorage

 Goal:ImprovereportingstructureforexistingCityWorksimplementation

 Objective:ContinueimplementingmobilesolutionforCityWorkstoaidinpaperreductionas wellexpandinguseofFlex/ESRIMappingsystems.

 Goal:Upgradeexistingserversandsoftware.

 Objective:ImplementDragosSCADACDPprogram.

 Objective:UpgradeWebspacetonewversionandserver.

 Objective:UpgradeCityWorkstolatestmajorrelease.

 Goal:Completenetworksegregation.

 Separatenetworksforworkstations,internal-onlyservers,andpublic-facingservers.

Information Technology (continued)

Goals & Objectives (continued)

 Goal:ConversionofCCTVinspectionsystemfromArcMaptoArcGISPro.

 Objective: Installationofnewsoftwareonallcameravans.

 Goal: Participate in presentations for map application use and in-house general instruction classes.

 Objective: Prepareanddelivertrainingprogramsasneeded.

 Goal:Dataentryofas-builtsewermaps.

 Objective:OngoingdataentryofexistingrecorddrawingsintotheGISsystem.

 Goal:ImprovedatasharingbetweenMSDandourbillingpartners.

 Objective:Streamlineinformationsharingofaddressandbillingdatawithallorganizations whoperformbillingservicesonbehalfofMSD.

 Objective: Improve quality and accuracy of information produced and shared with MSD billingstaff.

 Objective:ImprovethefeedbackloopbetweenMSDandbillingpartnerswheninaccuracies arediscovered.

 Goal:Toinputgeospatialdatachangesasrequestedbyusers.

 Objective:ContinueapplicationandgeospatialdatasupportforCityWorks,GraniteXP,Flex, ArcGISDesktop,andARforTruckssoftwareandprocesses.

 Goal:Continuesystem-wideaccuracyverificationandimprovementproject.

 Objective:Locateunmappedinfrastructure.

 Objective:Verificationthatmappeddataphysicallyexists.

 Objective: Improve horizontal accuracy of mapped infrastructure using high-accuracy GPS measurements.

 Objective:Improveverticalaccuracyofmappedinfrastructureusingphysicalmeasurement.

 Objective:Photographinfrastructuretorecordexistenceandcondition.

 Objective:Addtoobservationalcapacityoftechnician,includingpushcameracapacityand potentiallydroneusetocapturenewdevelopmentinreal-time.

 Objective:ReportobservationstoGISforsystemupdate.

 Objective:ReportinfrastructureconditiontoSystemServicesDivision.

Information Technology (continued)

Goals & Objectives (continued)

 Goal:Improveefficiencyofsystem-wideaccuracyverificationandimprovementproject.

 Objective:Developimprovedfieldworkplanningmethodologiestominimizetripsneededfor mapimprovementprojects.

 Objective: Addadvancedqueriesandvisualaidstoplacefocusontheareasinmostneedof mapaccuracyimprovements.

 Goal:Processingmaprequestsandcustomerdatainquiries.

 Objective:MapWastewaterReclamationFacilitystructuresastheyarechangedand exposedbyconstructionprojects.

 Objective:AssessmentofMSDhardcopymaps,survey,andstandalonedigitaldatathat havenotbeenenteredintotheGISsystem.

 Objective:Allsubmittedfieldlocateswillbemeasuredandenteredusinghigh-accuracyGPS.

 Goal:UpgradeArcGISdatabaseanddesktoptoArcGISPro

 Objective:ConvertdesktopapplicationsfromArcMaptoArcGISPro.

 Objective:UpgradeEnterpriseGeodatabasestothemostcurrentversionofArcGIS.

 Objective: Convert automated operations to work with ArcGIS Pro programming environment.

 Objective: UpgradeArcGISEnterpriseserverandprovisioningenvironment.

 Objective:Developand delivertrainingclassesforusersconvertingfromArcMaptoArcGIS Pro.

 Objective: Preservealegacyenvironmentforuserswhoarenearretirement.

FY2025 Budget – Information Technology

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages736,836$719,973$808,843$849,062$849,062$100.00%880,469$3.70% 51150Overtime--------

TotalSalaries&Wages736,836719,973808,843849,062849,062100.00%880,4693.70%

Benefits

51200NorthCarolinaRetirement76,85583,45297,623109,444109,444100.00%120,0969.73%

51250PayrollTaxes54,02453,66160,15864,95364,953100.00%67,3563.70%

51300Medical,Dental&Life163,055173,653184,940196,962196,962100.00%196,9620.00% 51325PostRetirementInsurance18,61818,61818,61818,61818,618100.00%18,6180.00% 51350Worker'sCompensation17,96017,96017,96017,96017,960100.00%17,9600.00% 51360StateUnemploymentBenefits141--2,1422,142100.00%2,1420.00% 51500401-K/457Plan36,67136,20239,97442,45442,454100.00%44,0253.70%

TotalBenefits367,325383,546419,273452,533452,533100.00%467,1593.23% TotalSalaries,Wages&Benefits1,104,1611,103,5191,228,1161,301,5951,301,595100.00%1,347,6283.54%

Materials,Supplies&Services

52050Dues&Subscriptions762598498574574100.00%65013.24% 52150Travel,Mtgs&Training2,005-741,9001,900100.00%13,636617.68% 52180LiabilityInsurance10,55711,61312,77512,77512,775100.00%12,7750.00% 52200Telephone/Telefax43,94524,50925,83130,20030,200100.00%30,3000.33% 52210Communications6,2947,9487,13510,98410,38494.54%11,6205.79% 52240Uniforms93323334950750098.62%1,550205.73% 52250OfficeSupplies61328223500500100.00%1,000100.00% 52260SpecialDeptSupplies464521447500500100.00%75551.00% 52270SafetyEquip/Supplies38-411,00090090.00%400-60.00% 52280MaintSupp/SmallTools--71,6501,50090.91%1,200-27.27% 52350Prof/ContractualSvcs9,2834,3573,90512,50010,00080.00%12,5000.00% 52500Rents/Leases39,48144,07043,26450,00050,000100.00%50,0000.00% 52510Permits/Fees/SoftwareLicenses200,596216,024218,045298,254298,254100.00%299,5610.44% 52910Non-CapitalEquipment38,81129,10864,07956,52756,527100.00%55,000-2.70% 52915CopiersPrinters&Faxes---5,0005,000100.00%5,0000.00% TotalMaterials,Supplies&Services353,230339,308376,671482,871479,51499.30%495,9472.71%

CapitalOutlay

54010CapitalEquipment-New10,3472,6108,40413,50013,500100.00%3,000-77.78% 54020CapitalEquip-Software-------54030CapitalEquip-Replacement14,97021,91014,94226,32326,323100.00%46,00074.75% TotalCapitalOutlay25,31724,52023,34639,82339,823100.00%49,00023.04%

Sub-TotalO&MFund1,482,708

59200LESS:

Financial Services

Organizational Chart

Financial Services (continued)

Mission Statement

ThemissionoftheFinance,Accounting,andBudgetDivisionistoprovidetimely,useful,andaccurate 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.

ThemissionofthePurchasingandWarehouseDivisionistoprovideprocurementservicestoDistrict 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 supplyofpartsandmaterialsrequiredforDistrictoperationsandassetmaintenance.

The mission of Facilities Management Division is to provide professional, crafted, and highly productivetradepersonstoproperlymaintaineachoftheDistrict’s(90)structuresandfacilities.They continuously seek out new and improved products and methods of operation for inclusion into the processofprojectcompletioninthelongest-term,cost-effectivemanner.

ThemissionoftheFleetMaintenanceDivisionistooverseethemaintenanceofallDistrictrollingstock inatimelyandcost-efficientmanner.

Key Responsibilities

Finance, Accounting, and Budget—Coordinates and manages the District’s Operating and Capital budget preparation; monitors the annual budget through pre-audit of purchase orders and invoice payment;preparesmonthlyoperationandcapitalprojectsfinancialreportsformanagementandthe 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 professionaladvisors;overseestheInsurancePrograms;preparesbillingforindustriesandcustomers usingwellwater.

Financial Services (continued)

Key Responsibilities (continued)

Purchasing and Warehouse—To provide a proper system of internal control for all District acquisitions;toensurecompliancewiththeNorthCarolinaGeneralStatutesandtheBoard-approved District Purchasing Policy; to assist and train division requisitioners as required; to effect timely acquisitionsanddisposalsofproperty.

Facilities Management—Provides masonry (stone, brick, block) concrete (plaster, refractory, resurface, slab), carpentry (form, frame, finish), industrial painting, tile (quarry, vinyl, ceramic), cabinetry (in-house built), glass installation and glazing, signage (engraving, layout), mechanical installation, in-house fabrication, locksmith (unified master system), and drywall. Prepares Annual District facility/structural evaluations and oversees contract work (i.e., plumbing, roofing, etc.).

Periodically compares in-house estimates with estimates from the private sector to ensure cost effectiveandqualityservices.

Fleet Maintenance—Toprovidefleetmaintenanceandmanagement;coordinate FleetReplacement; write specifications for new and replacement vehicles and equipment; manage fueling facilities; inspectionsatDistrictownedfacilities;maintainfleetinventory;servicevehiclesonaregularbasis.

Staffing History

Services (continued

Accomplishments for FY 2023-2024

 Received the GFOA “Excellence in Financial Reporting” award for the Annual Comprehensive FinancialReport(ACFR)forFYendingJune30,2023.

 Received the GFOA “Distinguished Budget” award for the Budget Document prepared for FY endingJune30,2024.

 Continue to offer high level of Customer Service to all customers internal and external to the District.

 PurchasingandFinanceTeamcontinuetoimplementandenhanceitsE-Payablesprogramwith BankofAmerica.

Financial Services (continued)

Accomplishments for FY 2023-2024 (continued)

 SuccessfullyauctionedMSDsurplusmaterials.

 Enhancedpaperreductioninitiativebyscanningandattachingreceipts,quotations,emails,and other pertinent information and documentation to purchase orders and the vendor database. AlsoincreaseduseofemailandpdfforRequestforQuotations(RFQ)andothercommunications withvendors.

Goals & Objectives

 Goal:Prepareandadministerbudget,whicheffectivelymeetstheshortandlong-termneedsof theDistrict(OperatingBudgetPolicy#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 BudgetDocument

 Objective: Maximize accuracy of budgeted revenues and expenditures by striving for variancesbetweenbudgetandactualamountsoflessthan5%

 Objective:Maintainaffordabilityofrateincreasesbylimitingrateincreasetosouthernurban costoflivingpercentage

 Goal: Prepare ACFR and other financial information, which effectively meet manager, investor, regulator,andotheruserneeds

 Objective:ObtainoutsideverificationoftheeffectivenessoftheACFRbyearningGovernment FinanceOfficers’AssociationAwardofExcellence

 Objective : Maximize availability of financial information to all users by offering CAFR and budgetdocumentsonDistrictWebsite

 Goal:ManagetheDistrict’sdebtratingtoobtainthelowestcostofborrowing(DebtPolicy#3)

 Objective:AchievecompliancewithallprovisionsofBondOrder(DebtPolicy#6)

 Objective:MaintainorimproveDistrict’sdebtrating

 Objective:Makeefficientuseofdistrictfundsusedfordebtservice

Financial Services (continued)

Goals & Objectives (continued)

 Goal:Provideservicesandsuppliesinatimelymanner(LT6andPurchasingPolicy#2)

 Objective:Placepurchaseorderswithinthreebusinessdaysofrequisition

 Objective:Bidcapitalequipmentwithintwoweeksofrequisition

 Goal:OperateFinanceDepartmentinanefficientmanner

 Objective:Minimizefinancedepartmentexpendituresinrelationtototalexpenditures

 Goal: Manage District’s investments to maximize rate of return while maintaining safety and meetingcashflowneeds

 Objective:Achieveatotalrateofreturnatleastthatofa6-MonthT-bill

 Goal:Preparesewagetreatmentbills,whichareaccurateandcollectedinatimelymanner

 Objective:Limitrebillingduetoerrorstolessthan1%oftotalbills

 Objective:Collectaminimumof98%ofallresidentialfeesand90%ofindustrialfeesbilled

 Goal: Pay for all servicesrendered and goodsdeliveredto the District in atimely and accurate manner

 Objective:NotbeassessedanylatechargesonanyDistrictaccounts

 Objective:Limitvoidedaccountspayablechecksto10%oftotalcheckswritten

 Goal:Maintaincost-effectiveandsufficientinventorylevels

 Objective:Tomaintainaninventorylosslevelbelow3%(PurchasingPolicy#2)

 Objective:Tominimizeemergencypurchases

 Goal:Timelyandcost-efficientmaintenanceandrehabilitationofplantbuildingsandequipment (Goals#1&3)

 Objective: Maintain annual rehab and replacement of key Building systems according to long-rangeplan(roofs,Mechanicalsystems,exteriors,etc.)

 Goal:FortheMSDfleettohaveminimalenvironmentalimpacttotheservicearea(Goal#1)

 Objective: Monitor all vehicles use of biodiesel (B20) and ethanol (E10) for any fuel related problemsorrepairs

Financial Services (continued)

Goals & Objectives (continued)

 Goal:Providehighlevelofqualityofserviceandproficiency

 Objective: Continuous improvement and training on software upgrades, diesel engine maintenance,andrepairs

 Goal: Maintain and replace only vehicles and equipment required for efficient and effective operation

 Objective: Continue to evaluate heavy-duty vehicles essential for sewer line preventative maintenance

Performance Measures

2. ReceiptofGFOAExcellenceinFinancialReporting AwardforACFR

3. ACFRandbudgetdocumentavailableonwebsite

4. DistrictdebtratingMoody’s/Standard& Poor’s/Fitch

Comments: Assesses affordability of sewer rate increases when compared to overall regional price increases.

Comments: These illustrate the accuracy of financial projections and adequacy of revenues to meet expenditures.

11. Interestanddebtmanagementcostsasa percentageofoutstandingdebt

NCCashManagementTrust(MoneyMarket)

14. 6-MonthT-BillSecondaryMarket(Calendar)

Comments: Rates of return reflect overall declining interest rates in the fixed income market.

Financial Services (continued)

Performance Measures (continued)

15. Collectionofinternallybilledresidentialaccounts

16. Collectionofinternallybilledindustrialaccounts

17. Percentageofvoidedaccountspayablechecks

Comments: This ratio illustrates the effectiveness of the cash disbursement process.

18. PercentageoftotalO&Mcostsexpendedon Financefunction

19. Purchaseordersplacedwithin3businessdays

20. Requisitionsforcapitalequipmenttobebidwithin two(2)weeksfromreceiptofdetailed specificationsfromdivision

21. MaintainlossofinventoryatWarehousebelow3% invalue(Goal2)

22. Obtainthe12%goalforpurchaseswithminority owned/operatedbusinesses

FY2025 Budget – Financial Services

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages1,127,965$1,113,764$1,182,595$1,253,384$1,253,384$100.00%1,268,863$1.23%

51150Overtime13,1184,3627,67728,50028,500100.00%28,5000.00%

TotalSalaries&Wages1,141,0831,118,1261,190,2721,281,8841,281,884100.00%1,297,3631.21%

Benefits

51200NorthCarolinaRetirement119,286128,337143,833165,235165,235100.00%176,9607.10%

51250PayrollTaxes84,65482,57589,30598,06498,064100.00%99,2481.21%

51300Medical,Dental&Life277,194295,212314,401334,838334,838100.00%334,8380.00% 51325PostRetirementInsurance31,65031,65031,65031,65031,650100.00%31,6500.00% 51350Worker'sCompensation30,53230,53230,53230,53230,532100.00%30,5320.00% 51360StateUnemploymentBenefits240--3,6413,641100.00%3,6410.00%

51500401-K/457Plan54,16954,05053,45562,67062,670100.00%63,4441.24% TotalBenefits597,726622,356663,176726,630726,630100.00%740,3131.88% TotalSalaries,Wages&Benefits1,738,8091,740,4821,853,4482,008,5142,008,514100.00%2,037,6761.45%

Materials,Supplies&Services

52050Dues&Subscriptions1,7761,7593,1323,5003,20091.43%3,200-8.57% 52150Travel,Mtgs&Training1,2024,81211,66023,00023,000100.00%25,0008.70% 52180LiabilityInsurance132,144145,359159,895159,895159,895100.00%159,8950.00% 52210Communications7,1217,4066,8927,7007,700100.00%7,7000.00% 52240Uniforms5,9885,6066,1767,2507,250100.00%7,2500.00% 52250OfficeSupplies3,5043,3053,1243,7503,750100.00%3,7500.00% 52260SpecialDeptSupplies325,124318,644317,283433,346429,15099.03%431,150-0.51% 52270SafetyEquip/Supplies1,0849561,2081,3501,350100.00%1,3500.00% 52280MaintSupp/SmallTools3,4795,7664,23418,50018,500100.00%18,5000.00% 52290ChemicalSupplies1,1702,0791,4004,0004,000100.00%4,0000.00% 52350Prof/ContractualSvcs73,99970,56776,89396,18090,43094.02%96,5000.33% 52410Maint-Buildings&Grounds-------52450EquipmentRental---10,00010,000100.00%10,0000.00% 52460MotorFuel&Lubricants127,190217,277233,475290,000290,000100.00%310,0006.90% 52470OutsideVehicleMaint16,35123,23745,56230,00025,00083.33%30,0000.00% 52500Rents/Leases-------52510Permits/Fees/SoftwareLicenses4,7724,9644,7594,4004,400100.00%4,4000.00% 52910Non-CapitalEquipment4,0931,2309951,5001,500100.00%1,5000.00% TotalMaterials,Supplies&Services708,998812,965876,6881,094,3711,079,12598.61%1,114,1951.81%

InterfundTransfers

53040FleetReplacementCharges6,0587,2097,2097,2097,209100.00%7,2090.00% TotalInterfundTransfers6,0587,2097,2097,2097,209100.00%7,2090.00%

CapitalOutlay

54010CapitalEquipment-New-7,047-----54030CapitalEquip-Replacement2,894------TotalCapitalOutlay2,8947,047------

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

Wastewater Treatment Plant

Organizational Chart

Wastewater Treatment Plant (continued)

Mission Statement

The mission of the Wastewater Treatment Facility Division is to maintain the highest level of wastewaterqualitybymeetingFederalandStateenvironmentregulations;operatingandmaintaining facilitiesinaproductiveandcost-effectivemanner;andabovealltoprotecttheenvironment.

Key Responsibilities

Include the operation of the District’s regional water reclamation facility and maintain 24-hour shift operation;assurethatalltreatedwastewatermeetsalldischargerequirements;assurethatallTitleV airqualitypermitsmeetFederal,StateandLocalrequirements;assurethat Statestormwaterpermit requirementsaremet;assurethatallFederalandStatePretreatmentprogramrequirementsaremet.

Staffing History

Wastewater Treatment Plant (continued)

Staffing History (continued)

Accomplishments for FY 2023-2024

 MaintainedcompliancewithallStormwaterPermitandAsheville-BuncombeAirQualityAgency &EPAAirQualityTitleVpermitandstandardsduringFY2024.

 RecognizedforaPeakPerformanceAwardbytheNationalAssociationofCleanWaterAgencies (NACWA)attheSilverLevelAwardforcalendar2023.

 Estimatedtotalgallonstreated:7,388milliongallons.

 Estimatedtotalsolidsincinerated:6,237tons.

 Estimatedtotalsolidshauled:2,217tons.

 Estimatedtotalcubicyardsremovedbyfinescreens:194cubicyards.

 Estimatedtotalcubicyardsremovedbybarscreens:207cubicyards.

 Estimatedtotalcubicyardsremovedbygritvortex:345cubicyards.

 CompliantStationarySourceTesting(StackTest)forFluidizedBedIncinerator(FBI)TitleVpermit

 Treatmentplantstaffconductedguidedtoursofthefacilitywithapproximately176studentand adultindividualsattending.

 FBIheatexchangerreplacement.

 BrokenRBCremoval.

 FBIpre-heatburnerassemblyreplacement.

Wastewater Treatment Plant (continued)

Budget Highlights/Changes for FY 2024-2025



 MaintaincompliancewithallStormwaterPermitandAsheville-BuncombeAirQualityAgency& EPAAirQualityTitleVpermitandstandards.



 FBIrehabilitation.



 Incineratorsandtransportsystem.



 Clarifiereffluenttroughsrehab.



 PlantNPWfiltersystem.



 RBCreplacement.



 AddasecondGreaseProgramInspectorposition.



 AutomateHRPTinfluentvalve.

Goals & Objectives

 Goal:OperatetheWaterReclamationFacilityinthemostefficientandeffectivemannerandin compliancewithallrequirementsoftheDischargePermit(NPDES)(Objective#2)

 Objective:Achieveacarbonaceousbiochemicaloxygendemand(CBOD)removalefficiency ofatleast85%

 Objective:Achieveatotalsuspendedsolids(TSS)removalefficiencyof85%

 Objective:HaveNPDESpermitnon-complianceoccurrenceofzero(0)

 Objective:Limitodorcomplaintsbymaintainingdissolvedhydrogensulfide(H2S)levels below0.5mg/L

 Objective:Maintaintreatmentcosts(cost/MG)at/belowNACWAaverage

 Goal:Continualimprovementofoperations

 Objective:Effectivelymanagedivisionalobjective(s)identifiedintheISO14001 EnvironmentalManagementSystem

 Objective:AssistindevelopmentofWRFSCADA–integrationofcontrols,reviewsofstandard operatingproceduresaffectingOperationsandPretreatment.

 Continuetoadvanceoperatorbiologicalcertifications.

Wastewater Treatment Plant (continued)

FY2025 Budget – Wastewater Treatment Plant

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages1,059,702$1,121,169$1,242,287$1,299,173$1,299,173$100.00%1,423,690$9.58%

51150Overtime73,00876,83188,62489,10089,100100.00%89,1000.00%

TotalSalaries&Wages1,132,7111,198,0001,330,9111,388,2731,388,273100.00%1,512,7908.97%

Benefits

51200NorthCarolinaRetirement118,095135,889163,032178,948178,948100.00%206,34415.31%

51250PayrollTaxes83,97689,033100,098106,202106,202100.00%115,7288.97% 51300Medical,Dental&Life309,805329,942351,388374,229374,229100.00%374,2290.00% 51325PostRetirementInsurance35,37535,37535,37535,37535,375100.00%35,3750.00% 51350Worker'sCompensation34,12534,12534,12534,12534,125100.00%34,1250.00%

51360StateUnemploymentBenefits269--4,0704,070100.00%4,0700.00%

51450AutomobileAllowance3,6003,6004,5103,6003,600100.00%3,6000.00% 51500401-K/457Plan47,39151,87156,73664,95964,959100.00%71,1869.59% TotalBenefits632,635679,836745,264801,508801,508100.00%844,6575.38%

TotalSalaries,Wages&Benefits1,765,3461,877,8362,076,1752,189,7812,189,781100.00%2,357,4477.66%

Materials,Supplies&Services

52010Advertising3,3893,1494,0356,0005,70095.00%6,0000.00%

52050Dues&Subscriptions21,91421,97622,86127,85027,850100.00%29,7216.72% 52150Travel,Mtgs&Training9,28322,81435,43357,95057,950100.00%49,250-15.01% 52180LiabilityInsurance101,454111,599122,759122,759122,759100.00%122,7590.00% 52210Communications9,8938,24212,67614,6205,50037.62%14,6200.00% 52240Uniforms8,9877,41411,34515,45015,30099.03%18,25018.12% 52250OfficeSupplies3,5712,5862,4433,1002,85091.94%3,1000.00% 52260SpecialDeptSupplies35,99841,42247,93753,83053,830100.00%52,145-3.13% 52270SafetyEquip/Supplies8,08311,58111,58313,00012,50096.15%13,0000.00% 52280MaintSupp/SmallTools1,4491,4602,8043,4003,400100.00%3,4000.00% 52290ChemicalSupplies407,332339,210621,6581,509,887900,00059.61%1,316,500-12.81% 52350Prof/ContractualSvcs225,457231,998261,736280,408278,40899.29%427,88452.59% 52510Permits/Fees/SoftwareLicenses14,87528,43341,13151,50030,50059.22%71,50038.83% 52650Utilities883,9681,217,9051,383,4541,400,0001,400,000100.00%1,550,00010.71% 52910Non-CapitalEquipment3,7673,8143,88825,0005,00020.00%6,000-76.00% TotalMaterials,Supplies&Services1,739,4202,053,6152,585,7443,584,7542,921,54781.50%3,684,1292.77%

InterfundTransfers

53040FleetReplacementCharges28,20233,56033,56033,56033,560100.00%33,5600.00%

TotalInterfundTransfers28,20233,56033,56033,56033,560100.00%33,5600.00%

CapitalOutlay

54010CapitalEquipment-New14,0508,98128,35415,00015,000100.00%24,00060.00% 54030CapitalEquip-Replacement1,969-51,741-----

TotalCapitalOutlay16,0198,98180,09515,00015,000100.00%24,00060.00%

Sub-TotalO&MFund3,548,987$3,973,992$4,775,573$5,823,095$5,159,888$88.61%6,099,136$4.74% NetOperation&MaintenanceFund3,548,987$3,973,992$4,775,573$5,823,095

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

System Services - Maintenance

Organizational Chart

System Services - Maintenance (continued)

Mission Statement

The mission of the System Services Maintenance Division is to maintain MSD’s Collection System, Pump Stations, and Water Reclamation Facility in such a way as to protect the health, safety, and environment. In short, our mission is to “Keep it Flowing”throughmore than one thousand miles of piping,39pumpstations,andthetreatmentprocessuntildischargedintotheFrenchBroadRiver.

Key Responsibilities

Includemaintenanceandinspectionof1,157milesofsanitarysewerline,operation,andmaintenance of38remote pumpstations,maintenanceof 40MGDWaterReclamationFacility, andoperationand maintenance of 2.5-megawatt Hydro Electric Generation Facility. Provide customer service and emergency response 24 hours/day, 365 days/year. Provide preventive, proactive, and corrective maintenanceofallmechanical,electrical,pneumatic,HVAC,instrumentation/controls,andScada communication throughout the District. Maintain compliance with MSD’s Collection System Permit andprovidesupporttoplantoperationsinmaintainingHPDSdischargepermit.

Staffing History

System Services - Maintenance (continued)

System Services - Maintenance (continued)

Accomplishments for FY 2023-20234

 Cleanedover1,307,000LFofpipelinewithin-housecrews.

 CCTV’dover160,000LFofsanitarysewerlines.

 Mechanicallyroddedover30,800LFofpipelineforrootremoval.

 Achieved an average 38-minute response time to Collections System customer service calls duringworkinghours,nights,andweekends.

 Performedover178,000LFofacousticinspectionontheCollectionSystem.

 Smoketestedover9,100LFofCollectionSystem.ContinuingtodecreaseI&Ialongwithassisting Engineeringinflowmonitoringstudies.

 Inspectedover700,000LFofHighPriority/CreekCrossings.

 Continuepublicawarenesseducation/FOGbyhandingoutinformationpacketswhenapplicable. Increaseawarenessoftheproblemwithdisposablewipesthroughpubliceducation.

 Recoveryofover$265,000inelectricpowersavingsfromtheHydroElectricGenerationFacility.

 CoatedandreplacedallimpellersatCarrierBridgeandallthreeRawPumps.

 RebuiltDimminutoratCarrierBridge.

 InstalledsecuritycamerasatCarrierBridgeandsecuredthebuildingwithsteelbars.

 RepairedBackflowatplant.

 FERCinspectiononAugust17,2023

 Rebuilt#2and#3turbinesandgot#3backonline. Readytoinstall#2turbinewhenwaterlevels drop.

 AssistedinHATCHhydroevaluation.

 UpgradedpumpsatAshleyWoodspumpstation.

 TCheatexchangerrepairinDecember2023.

 FanningBridgeGodwinpumprepaired.

 Weaverville#1pumprebuiltandreinstalled.

 InstalledhotpressurewasheratTCbuildingandinstallednewgassystem.

 Builtpumptransportationracksforpumptrucks.

 BuiltabelttensioningsystemandarollerliftingdeviceforBFP’s.

 RemovedcrackedvalveatWeaverville#1.

System Services - Maintenance (continued)

Accomplishments for FY 2023-2024 (continued)

 Rebuiltmuffin(south)atCarrierBridge

 Installed2setsofcarpetsatfilterbuilding.

 Removedallairlancesinbasin1andrepairedandreplaced.

 Replacedbearingsin#2forcedairblowerandRBCblower#2.

 Installedanew480Vtransformerandserviceatmaintenanceshop.

 Gotallbackflowsmovedinsideofpumpstationsandinstalledpowerforheattape.

 BoilersystemunderinstallationatMullBuilding.

 InstallednewserviceatLakeJulianpumpstation.

 Assistedwithandinstalledallelectricalandnetworkcableforboardroomrenovations.

 Purchasednewshopsaw.

 Reorganizedshoptobemoreproductive.

 InstalledtemporarydosingstationatTCbuildingatthescrubberforPHcontrol.

 Installednewpotablewaterbackflowattheheadoftheplant.

 ParticipatedinfivecareerdayeventsforBuncombeCountySchools.

 ParticipatedinAshevilleParksandRecreation’sTruckCityAshevilleshowandtheJunior LeagueofAsheville’sTouchATruckfestivalgivingkidsandadultsachancetogetanup-close lookattrucksandequipment.

 BypassedWaightstillMountain,Weaverville#1,andITTpumpstationtwiceforpumpstation maintenance.

 Vacuumedincineratorsoutforinspections.

 LocatedmanholesforNCDOTI-26project.

 AssistedcontractorsonRBCprojectwithvacuumtrucks.

 Vacuumedouttestbedtankforhighratefiltrationbuilding.

 DewateredRBCbasins.

 RemovedflowablebackfillatWrightsToolinSwannanoa.

 Assistedconstructioncrewmultipletimeswithhydroexcavation.

 VacuumedPistagrittsystemtwice.

 Assistedcontractorswithgatesatplant.

System Services - Maintenance

(continued)

Accomplishments for FY 2023-2024 (continued)

 BypassedErwinHillsforvalverepair.

 Located and CCTV’d all manholes at TC Roberson HighSchool ball field for a joint venture with Construction,BuncombeCountySchools,andsurveyingcompanyforculvertreplacementatthe ballfield.

 Continued to improve customer service and interdepartmental feedback to improve overall service.

Budget Highlights/Changes for FY 2024-2025



 CompleteallIRscansforpumpstations.



 BeginperformingIRscansatWRF.



 Installturbine#2atpowerhouse.



 InstallnewMCCattheClarifierandlawnmowerbuilding.



 InstallabypassandupgradeNewBernpumpstation.



 InstallisolationvalvesatErwinHillsandFerryRoadpumpstations.



 RehabilitatesouthwestClarifier.



 InstallapermanentPHdosingstationatTCscrubber.

Goals & Objectives

 Goal:Promotesafetyfirst(Goals#1-4)

 Objective:Training

 PersonalProtectiveEquipment

 TrafficControl

 ConfinedSpace

 Vehicle/EquipmentOperation

 ArcFlash

 Rigging,Chains,andHoists

System Services - Maintenance (continued)

Goals & Objectives (continued)

 Goal:ReducenumberofSanitarySewerOverflows(Goals#1-4)

 Objective:ContinuetoidentifyareaswithheavyInflowandInfiltration(I&I)

 FlowMonitoringInvestigation

 SmoketestingInvestigation

 Identifymajor/minorsourcesofI&I

 Objective:MaintainanaggressivePreventiveMaintenanceProgram

 Cleanaminimumof600,000LFofsanitarysewerlines

 Utilizeacousticinspectiontohelpstrengthenimpactoflinescleaned

 Objective : Evaluate/update priorities for increased preventive maintenance areas and recommendationsofareasforrehabilitation

 CCTVInspection/score400,000LFsewerpipeline

 Continuetoexpandpiperatingprogram

 UtilizeSL-RATtoprioritizepreventivemaintenanceprogramtogainoptimalperformance andsaveresources

 Completion of CCTV’ing and re-scoring of all current CIP lines in Collection System into newPACPformat

 Goal:Provideexcellentcustomerserviceinternal/external(Goals#1–4)

 Objective:Maintainoncallstatus24hours/day,7days/week

 Objective:Respondtoallcustomerservicerequestswithinonehour

 Objective:Maintaingreatrelationshipwithoutsideentitiesandinternaldivisions

 Goal:Maintainaqualifiedandmotivatedworkforce(Goals#1–4)

 Objective:Crosstraintopromotepositiveemployeerelationshipsandteamwork

 Objective:Provideopportunitiesforadditionaltrainingsthatpromoteincreased knowledgeandabilitiesforallSSMaintenancestaff

 Objective:Explorationofnewtechnologiesforcontinuousimprovement

System Services - Maintenance (continued)

Goals & Objectives (continued)

 Goal:DecreaseinEquipmentFailure(Goals#1–4)

 Objective:Increasepredictive/preventivemaintenanceprogram.

 Objective : ContinuetodevelopequipmentmaintenanceSOP’sonallequipment.

 Objective : Continuetodevelopelectricalpreventivemaintenanceprogram.

Performance Measures

FY2025 Budget – System Services - Maintenance

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages2,400,595$2,457,655

$5.18%

51150Overtime111,276118,206129,481159,000159,000100.00%159,0000.00%

TotalSalaries&Wages2,511,8702,575,8622,922,5463,095,1423,095,142100.00%3,247,2484.91%

Benefits

51200NorthCarolinaRetirement261,643293,323356,730398,964398,964100.00%442,92511.02%

51250PayrollTaxes185,237190,871220,025236,778236,778100.00%248,4154.91%

51300Medical,Dental&Life766,360816,173869,225925,726925,726100.00%925,7260.00%

51325PostRetirementInsurance87,50781,06287,50787,50787,507100.00%87,5070.00% 51350Worker'sCompensation84,41684,41684,41684,41684,416100.00%84,4160.00% 51360StateUnemploymentBenefits665--10,06810,068100.00%10,0680.00% 51500401-K/457Plan104,118110,118119,043146,808146,808100.00%154,4135.18%

TotalBenefits1,489,9461,575,9631,736,9461,890,2671,890,267100.00%1,953,4703.34%

TotalSalaries,Wages&Benefits4,001,8164,151,8244,659,4924,985,4094,985,409100.00%5,200,7184.32%

Materials,Supplies&Services

52010Advertising-3,7407614,5004,500100.00%4,5000.00% 52050Dues&Subscriptions5,1074,6585,8877,1307,130100.00%7,1300.00% 52150Travel,Mtgs&Training20,89428,74153,05157,47057,470100.00%64,70012.58% 52180LiabilityInsurance74,05081,45589,60189,60189,601100.00%89,6010.00% 52210Communications42,43352,35951,42964,50064,500100.00%64,5000.00% 52240Uniforms28,75830,08536,46739,60039,600100.00%39,6000.00% 52250OfficeSupplies3,6402,8313,2435,5005,500100.00%5,5000.00% 52260SpecialDeptSupplies1,2151,4861,0322,0002,000100.00%2,0000.00% 52270SafetyEquip/Supplies19,86019,93125,23529,00029,000100.00%29,0000.00% 52280MaintSupp/SmallTools66,64576,20367,49375,00075,000100.00%75,0000.00% 52290ChemicalSupplies--------

52300LineCleaningSupplies49,44943,28452,41655,00055,000100.00%55,0000.00% 52350Prof/ContractualSvcs86,16378,46989,637112,400112,400100.00%131,50016.99% 52410Maint-Buildings&Grounds46,72949,25262,25076,00076,000100.00%76,0000.00% 52420Maintenance-Equipment463,250354,475382,619509,000509,000100.00%511,0000.39% 52430LandscapeRestoration8422771,6102,0002,000100.00%2,0000.00% 52440PumpMaintenance82,51987,00584,855112,500112,500100.00%112,5000.00% 52450EquipmentRental1,6834,2036,75812,50012,500100.00%12,5000.00% 52510Permits/Fees/SoftwareLicenses34,95819,43525,39926,30026,300100.00%26,3000.00% 52910Non-CapitalEquipment3,7607,8885,48912,02512,025100.00%15,75030.98% TotalMaterials,Supplies&Services1,031,957945,7771,045,2311,292,0261,292,026100.00%1,324,0812.48%

InterfundTransfers

53040FleetReplacementCharges247,935295,042295,042295,042295,042100.00%295,0420.00%

53050WWTPReplacementCharges200,000200,000200,000250,000250,000100.00%250,0000.00% 53070PumpReplacementCharges50,00055,00055,00060,00060,000100.00%60,0000.00%

TotalInterfundTransfers497,935550,042550,042605,042605,042100.00%605,0420.00%

CapitalOutlay

54010CapitalEquipment-New28,5068,0003,37716,45016,450100.00%34,600110.33%

54030CapitalEquip-Replacement19,802-16,54819,87519,875100.00%19,000-4.40%

TotalCapitalOutlay48,3078,00019,92436,32536,325100.00%53,60047.56%

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

System Services - Construction

Organizational Chart

System Services - Construction

(continued)

Mission Statement

ThemissionstatementoftheSystemServicesConstructionDivisionistoundertakeconstructionand repair activities in the MSD Sewer System as “Good Stewards of the Environment,” to provide constructionrelatedsupporttootherdepartmentsoftheDistrictandtodemonstratethehighestlevel ofcustomerserviceandprofessionalisminallinternalandexternalinteractions.

Key Responsibilities

Include timely, quality, and cost effective connections, repairs, and rehabilitation to the MSD Sewer System while protecting the waters of the state and the environment of Buncombe County and the District;workingcloselywiththeMSDSystemServicesMaintenanceDivisioninmaintainingaproperly operating collection system; providing guidance to local contractors, developers, and other construction personnel installing sewer lines, and being exceptional public servants in all activities andinteractionswithothers.

Staffing History

System Services - Construction (continued) Staffing History

(continued)

Accomplishments for FY 2023-2024

 Completedover915workorderrequestsduringtheyear. Throughtheseworkorders, approximately9,200LFofsewerrehabilitation,430pointrepairs,and260sewertapswere undertaken. Theseactivitieswerecompletedwithreducedstaffinglevelsduetothecurrent laborshortageissuesintheconstructionfield.

 Coordinated(5)jointventureprojectswithotherpublicagenciestofacilitatecostsavingsfor pavementrestoration,areductionintimeofdisturbance,and/orotherbenefitsforeach agency. ThesepartneragenciesincludetheTownofBiltmoreForest,COAStreetsDepartment, COAWaterDepartment,andCOAStorm-Water.

 MSDin-Housecrewsinstalledanapproximatecombinedtotalof381tonsofripraparmament toprotectexposedinterceptorseweronthebankofHominyCreekattheBuncombeCounty SportsParkinEnkaandat220HominyCreekRoadinWestAsheville. InbothlocationstheMSD interceptorseweris27”indiameterandhadastrongpotentialforwash-outpriortoriprap installation.

System Services - Construction (continued)

Accomplishments for FY 2023-2024 (continued)

 In teamwork efforts, assisted other MSD departments with various projects. This includes working closely with MSD Technical Services Maintenance staff and Pump staff to make two repairs to the Weaverville Pumping System Force Main, making multiple repairs to the 4-inch forcemainthattransportsashtothelagoonfromtheWaterReclamationFacility,creatingand maintainingtwodisposalanddryingcontainmentareasadjacenttothelagoon,andhauling49 loads/688 tons of sludge/sand to the Buncombe County landfill during basin cleaning and incineratorrepairprojects,attheWaterReclamationFacility.

 UtilizingTrenchlessTechnologiestomaintainapproximately2,669LFofexisting asphalt/concretesurfaces.

 AlongwithMSDTechnicalServices,ourIn-HouseDipUpandRepairCrewsspentmultipledays onAmboyRoadassistingNCDOTinlocating,exposing,andraisingmanholestogradethatwill beaffectedbytheupcomingInterstateImprovementProject.

 MSDInspectionstaffandIn-Housecrewsworkedcloselytogethertofacilitateemergencypipeburstingandpipe-liningrepairsontheMSDsewerlocatedadjacenttoMcDowellStreetand AshelandAvenue. Thiscoordinationavoidedextendeddowntimeforadjacentbusinessesand costlyexcavationandsiterestorationinthetwolocations.

 Continued 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. Re-bid the non-city paving contract for FY24-25, which resulted in significant cost savingsascomparedtotheFY23-24Contract.

 ContinuedparticipationintheCityofAshevillejointtaskforceforInfrastructureCommittee.This committee plans and coordinates projects to facilitate cost savings for multiple utility departments. These efforts contributed to several joint venture activities throughout the year betweenMSDandvariousCitydepartments.

 TheConstructionAdministrationgroupprovidedinspectionservicesforsix(6)CollectionSystem CIPprojects,three(3)WaterReclamationFacilityrelatedprojects,sixty-three(63)Planningand Developmentrelatedsewerextensions,andthirty-seven(37)contractorinstalledsewertaps.

 OurConstructionAdministrationGroupbegancrosstrainingandassistingourMSD’sIndustrial WasteSectionwithgreasetrapserviceabilityreviewsandinspections.

 Aspartof our ISOprogram,wecontinuedutilizingrecycledasphaltandconcretematerialsfor selectbackfillandotherneedsoncurrentsewerrehabilitationprojectswherepossible.

System Services - Construction (continued)

Accomplishments for FY 2023-2024 (continued)

 ThreeSystemServicesConstruction employeesparticipatedin leadership trainingthroughthe WCISupervisoryDevelopmentInstitute. TwelveemployeesmaintainedtheirNCDOTWorkZone SupervisorCertification,7employeesmaintainedtheirNCDOTWorkZoneInstallerCertification, 26employeesmaintainedtheirWastewaterOperatorsCertification,1employeemaintainedhis NC Professional Engineer Certification, 1 employee maintained his Professional Geologist Certification, 1 employee maintained his NCDOT Certifications for Roadway Construction Inspection,and12employeesmaintainedtheirCPRandFirstAidCertification.

Budget Highlights/Changes for FY 2024-2025



 Purchaseofdoubledrumsmoothasphaltrollertoassistourcrewswithtimelyandefficient restorationsinlocationswherewehavelengthytrenchexcavationsinroadways.



 Purchaseofhydraulicverticalshoringcomponentstofurtherassistthesafetyofour constructionemployees.

System Services - Construction (continued)

Goals & Objectives

 Goal:OperatecollectionsystemincompliancewithallprovisionsofStatePermit(Goal#1)

 Objective:Clearaminimumof20,000LFofsewerlineeasementeachyear.

 Objective:Rehabilitate 15,000 LF of sewer line with in-house staff utilizing dig-and-replace, IRS,andothertrenchlesstechnologyrehabilitationmethods.

 Objective: Provide inspection services to ensure new sewer extensions and sewer rehabilitationprojectsmeetstandardsandpermitrequirements.

 Goal:Promotea“SafetyFirst”workenvironment(Goal#1).

 Objective:ContinueworkingcloselywiththeMSDSafetyDivisiontoensuresafetypolicies andproceduresarefollowed.

 Objective: Provide safety training classes to advance employee safety knowledge on the variousequipmentusedandactivitiesundertakenwithinourconstructiondivision.

 Objective:Provideequipmentandresourcesneededtopromoteasafeworkenvironment.

 Goal:Maintainaqualifiedandmotivatedworkforce(Goal#1-4).

 Objective:Continuecrosstrainingscheduleforemployees.

 Objective:Continue step training and promotion programs for operator and excavator employees.

 Objective:Provideopportunitiesforadditionaltrainingsthatpromoteincreasedknowledge andabilitiesforallconstructionstaffincludingCollectionSystemOperatorCertifications.

 Goal:Work with City ofAshevilleStreet,Storm Water,andWaterDepartments aswellasother agencieswherepossibleonstrategicplanningandjointprojects(Goal#3-4).

 Objective:ParticipateinquarterlyCityofAshevilleInfrastructureTaskForcemeetings.

 Objective:Participate in monthly NC811 Buncombe County Utility Coordinating Committee meetings.

 Objective:Work with field representatives for municipalities and other utility agencies to promotejointeffortsandimproveprojectefficiencyattimeofconstruction.

 Objective:Removeservicelinesfromwatermeterboxes.

 Objective:Establish specific joint ventures for pavement overlays and other beneficial activities.

System Services - Construction (continued)

Goals & Objectives (continued)

 Goal:Explorevariouscostsavingsoptionsforthedivision(Goal#3).

 Objective:Continueexploringanddevelopingpipe-bursting,boring,andothertrenchless technologyoptions.

 Objective:Facilitatecostsavingsthroughtherecyclingandreuseofexcavatedconcrete andasphaltmaterials.

 Objective:Performconstructabilityreviewsduringprojectdesigntopromotecostsavings duringconstruction.

 Objective: Competitively bid asphalt/concrete restoration work on in-house sewer rehabilitationCIPprojects.

Performance Measures

FY2025 Budget – System Services - Construction

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages1,791,990$1,705,199

$5.24%

51150Overtime30,98336,83730,09973,00073,000100.00%73,0000.00%

TotalSalaries&Wages1,822,9731,742,0361,941,4082,225,7522,225,752100.00%2,338,4785.06%

Benefits

51200NorthCarolinaRetirement189,900199,411238,114286,899286,899100.00%318,96811.18%

51250PayrollTaxes135,185130,068146,581170,270170,270100.00%178,8945.06%

51300Medical,Dental&Life586,999625,155665,791709,068709,068100.00%709,0680.00%

51325PostRetirementInsurance67,02767,02767,02767,02767,027100.00%67,0270.00%

51350Worker'sCompensation64,65764,65764,65764,65764,657100.00%64,6570.00%

51360StateUnemploymentBenefits509323-7,7117,711100.00%7,7110.00%

51500401-K/457Plan78,89377,19483,120107,639107,639100.00%113,2755.24%

TotalBenefits1,123,1701,163,8351,265,2901,413,2711,413,271100.00%1,459,6003.28%

TotalSalaries,Wages&Benefits2,946,1432,905,8703,206,6983,639,0233,639,023100.00%3,798,0784.37%

Materials,Supplies&Services

52010Advertising---500500100.00%5000.00% 52050Dues&Subscriptions3,7532,9383,8415,5005,500100.00%5,5000.00% 52150Travel,Mtgs&Training12,04724,04820,95928,50028,500100.00%29,0001.75% 52180LiabilityInsurance88,00696,807106,488106,488106,488100.00%106,4880.00% 52210Communications18,98723,87422,24924,00024,000100.00%24,0000.00% 52240Uniforms20,67321,26322,21926,20026,200100.00%26,2000.00% 52250OfficeSupplies5668041,0432,9002,900100.00%2,9000.00% 52260SpecialDeptSupplies2953815441,0001,000100.00%1,0000.00% 52270SafetyEquip/Supplies12,85918,71821,58223,45023,450100.00%23,4500.00% 52280MaintSupp/SmallTools49,78733,12440,90756,10056,100100.00%56,1000.00% 52300LineCleaningSupplies226923198750750100.00%7500.00% 52350Prof/ContractualSvcs1,1201,8883,80813,00013,000100.00%13,4503.46% 52420Maintenance-Equipment55190-1,5001,500100.00%1,5000.00% 52430LandscapeRestoration7,6607,85710,29711,70111,70099.99%11,700-0.01% 52450EquipmentRental14,9504,500-19,00019,000100.00%19,0000.00% 52510Permits/Fees/SoftwareLicenses28,23621,73820,55025,70025,700100.00%25,7000.00% 52910Non-CapitalEquipment8,28713,5789,27812,95512,955100.00%12,9700.12% TotalMaterials,Supplies&Services268,003272,531283,962359,244359,243100.00%360,2080.27%

InterfundTransfers

52340DebtAdministrationExpenses132,255122,582110,847141,063141,063100.00%133,492-5.37% 53040FleetReplacementCharges206,836246,135246,135246,135246,135100.00%246,1350.00% TotalInterfundTransfers339,091368,717356,982387,198387,198100.00%379,627-1.96%

CapitalOutlay

54010CapitalEquipment-New10,755-7,107-----

54030CapitalEquip-Replacement24,50818,43116,79020,05020,050100.00%30,22550.75%

TotalCapitalOutlay35,26418,43123,89720,05020,050100.00%30,22550.75%

Sub-TotalO&MFund3,588,501

59200LESS:

ChargebackstoGeneralFundforCIP(744,979)(736,484)(800,260)(991,723)(991,723)100.00%(1,011,561)2.00%

ChargebackstoGeneralFundforSSD(1,782,378)(1,702,644)(1,943,292)(2,099,230)(2,099,230)100.00%(2,202,366)4.91%

NetOperation&MaintenanceFund1,061,145$1,126,421$1,127,986$1,314,562$1,314,561

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

Engineering

Organizational Chart

Engineering (continued)

Mission Statement

ThemissionoftheEngineeringDivisionistoproduce,manage,andcompleteengineeringprojectsfor the planning, repair, and rehabilitation of the District’s Collection System and Water Reclamation Facility (WRF), and to ensure that new extensions to the Collection System are designed and constructedtoDistrictStandards.Thisshallbeundertakeninthemostefficientandeffectivemanner necessarytoensurethereliabledeliveryandtreatmentofwastewateratanequitablepriceandinan environmentallysensitivemanner.

Key Responsibilities

Prepare a complete budget and schedule for all Capital Improvement Projects each fiscal year and adhere to it. For all capital projects: Produce quality, timely, and cost-effective engineering designs, plans,andspecifications;acquirenecessaryrights-of-way;andadministerconstructionthrougheach 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 and analyses, including master planning of the collection system and treatment facilities, evaluation of projected flow allocations, plan review, and quality control of developer-constructed extensions; perform specialized related duties;andserveasatechnicalresourcefortheDistrict.

Staffing History

Engineering

(continued)

Accomplishments for FY 2023-2024

 33,874 Linear Feet (LF) of collection system were rehabilitated during FY2024. This included 22,533 LF rehabilitated through contract construction and development projects, plus 9,645 LF rehabilitatedin-housebySystemServices. (ActualasofJune2024)

 Managedover85projectsandlineitemswithintheCIP.Projectsarewithinthevariousstagesof lifecycles-frompreliminarydesign,toactiveconstruction,tocomplete/closeout.

 Designed and sealed 12 of the 35 projects completed in-house by System Services. These are designedandthenconstructedbyin–houseforces.(EstimatedasofJune2024.)

 Processed1,184applicationsandreviewed67plansfornewconnectionsandextensionstothe collectionsystem.(EstimatedasofJune2024)

 AcquiredRights-of-Wayacross57properties.(EstimatedasofJune2024.)

 CompletedCIPPLiningContract#9,rehabilitatingapproximately22,969LFofexistingsewerline utilizing trenchless technology. Trenchless installations reduce impacts to surface features suchaslandscapingandasphalt.

 CompletedconstructionoftheChristianCreekInterceptor,a12,200LFprojectthathasspanned multiplefiscalyears.

 ContinuedtheSolidsHandlingPERandBiologicalTreatmentAlternativesEvaluation,twomultiyearengineeringstudiesthatwillhelpguidethefutureoftheWaterReclamationFacility.

 Successfully negotiated the extension of MSD’s Ammonia Compliance Schedule with NCDEQ. Compliancewasshiftedfrom2030to2037toprovidetheproperamountoftimetocompletethe complexdesignandconstruction.

 RemovedanddisposedofallfailedRBCunitsandcleanedRBCBasinNo.1,restoringitsoriginal treatmentvolume.

 Continued design of the Carrier Bridge Pump Station Replacement project, and successfully permitted two “open cut” pipeinstallations across theFrench Broad River. The project will be readyforconstructioninFY2024-2025.

 Completed design and publicly bid the Weaverville Pump Station replacement project. ConstructionwilloccurinFY2024-2025andFY2025-2026.

 CompletedtheHydroelectricPowerPlantRehabilitationstudytodeterminenecessaryupgrades toMSD’shydroelectricfacility.

 Implementedtherequiredarc-flashlabelingprogramforallMSD-ownedelectricalpanels.

 ReplacedtheheatexchangerandpreheatburnersystemonMSD’ssewagesludgeincinerator.

Engineering (continued)

Accomplishments for FY 2023-2024 (continued)

 CompletedthefinalphaseofMSD’sMullBuildingHVACSystemRehabilitationproject.

 CompletedconstructionoftheOdorControlDosingStationonHominyCreek.

 InitiateddesignoftheITTPumpStationReplacementproject.

Budget

Highlights/Changes for FY 2024-2025



 Rehabilitateapproximately37,683LFofMSD’scollectionsystemthroughcontractconstruction and in-house System Services. Approximately 15,174 LF of next year’s footage includes replacementoftheWeavervillePumpStationforcemain.



 AcquirepropertyforthefutureSwannanoaEqualizationStorageTank.



 CompletetheSolidsHandlingPERandBiologicalTreatmentAlternativesEvaluation.



 CompletedesignandpermittingforthereplacementofCarrierBridgePumpStation,tobeready forconstructioninFY2024-2025.



 CompleteROWacquisitionandbeginconstructionoftheWeavervillePumpStationReplacement project.



 CompletePhase1installationoftheIntermediateClarifierEffluentTroughReplacementproject.



 CompletedesignandpermittingandpubliclybidtheITTPumpStationReplacementproject.

Goals & Objectives

 Goal: Rehabilitate approximately 40,000 feet of the collection system each year, in close collaborationwithSystemServicesConstructionDivision.(MSDObjective#1)

 Goal: Verify adequate capacity of lines prior to authorizing construction of new lines or connection of any new facility, and ensure that all developer-constructed projects conform to MSDrequirements(MSDGoal#1)

 Goal: MeetthetimeandbudgetpredictionsestablishedintheCIPforFY2024.(MSDGoal#3)

 Goal: Utilize consulting engineers for unexpected rehabilitation projects, or those requiring specializedexpertise,asnecessarytoproduceatimelyresponseforotherDivisions’engineering requests.(MSDGoal#2)

 Goal: Coordinate projects with member agencies whenever possible. This is accomplished by sharinginformationonupcomingprojects.

 Goal: PreparespecialstudiesanddesignsasnecessaryforotherDivisions.(MSDGoal#2)

Engineering (continued)

Goals & Objectives (continued)

 Goal: Safeguard the structural integrity and accessibility of MSD sewer lines against damage fromgradingactivitiesbyotherjurisdictionsandprivateparties(MSDObjective#4)

 Goal: ObtainfeedbackfromdevelopersandengineersconcerningtheDistrict'sregulationsand processforsewerlinestobeacceptedforpublicuse.(MSDObjective#5)

 Goal: Reduceuseofpaperwhenpossibleandminimizefilespaceneeds.

Performance Measures

Valueofacceptedsystems

(*) Percentages include Contingency and Developer Reimbursements.

FY2025 Budget – Engineering

No.NameACTUALACTUALACTUALADOPTEDESTIMATEDPercentPROPOSEDInc(Dec) 2020-20212021-20222022-20232023-2024ActualExpended2024-2025Over Budget6/30/2024ToTotalBudgetPriorYear Budget

Salaries&Wages

51100Salaries&Wages1,122,914$1,106,698$1,193,782$1,289,805$1,289,805$100.00%1,375,019$6.61% 51150Overtime---2,0002,000100.00%2,0000.00%

TotalSalaries&Wages1,122,9141,106,6981,193,7821,291,8051,291,805100.00%1,377,0196.60%

Benefits

51200NorthCarolinaRetirement117,118126,845145,279166,514166,514100.00%187,82612.80%

51250PayrollTaxes83,41782,58388,40898,82398,823100.00%105,3426.60% 51300Medical,Dental&Life244,583260,481277,412295,445295,445100.00%295,4450.00% 51325PostRetirementInsurance27,92827,92827,92827,92827,928100.00%27,9280.00% 51350Worker'sCompensation26,94126,94126,94126,94126,941100.00%26,9410.00% 51360StateUnemploymentBenefits212--3,2143,214100.00%3,2140.00% 51500401-K/457Plan52,97453,28358,06364,49164,491100.00%68,7526.61% TotalBenefits553,173578,062624,030683,356683,356100.00%715,4484.70%

TotalSalaries,Wages&Benefits1,676,0871,684,7601,817,8131,975,1611,975,161100.00%2,092,4675.94%

Materials,Supplies&Services

52050Dues&Subscriptions4,9234,7344,5765,8005,800100.00%2,800-51.72% 52150Travel,Mtgs&Training7,52024,19710,32924,49024,490100.00%24,9922.05% 52180LiabilityInsurance34,74138,21542,03742,03742,037100.00%42,0370.00% 52210Communications4,4994,5535,7866,6326,632100.00%6,620-0.18% 52240Uniforms1,8791,5762,6973,9003,900100.00%3,325-14.74% 52250OfficeSupplies2,4892,5432,2163,1003,100100.00%3,1000.00% 52260SpecialDeptSupplies3,6784,1793,3194,3404,340100.00%4,3400.00% 52270SafetyEquip/Supplies403950300300100.00%3000.00% 52330LegalFees4305662,9173,1003,100100.00%3,50012.90% 52350Prof/ContractualSvcs14,0213,0723,43231,58812,50039.57%12,500-60.43% 52420Maintenance-Equipment-------52500Rents/Leases8008008001,0001,000100.00%1,0000.00% 52910Non-CapitalEquipment--9,1242,2502,250100.00%--100.00% TotalMaterials,Supplies&Services75,02184,47487,284128,537109,44985.15%104,514-18.69% CapitalOutlay

Sub-TotalO&MFund1,751,1091,769,2341,905,0972,103,6982,084,61099.09%2,196,9814.43%

59200LESS:

ChargebackstoGeneralFundforCIP(1,588,404)(1,626,849)(1,727,247)(1,918,346)(1,899,258)99.00%(2,006,431)4.59%

 Insurance Funds 

Insurance Funds

Overview

TheInsuranceFundsarefundedthroughannualappropriationsfromtheOperationsandMaintenance FundBudget.TheDistricthasestablishedfour(4)InsuranceFundsaspartofitssewerratestabilization strategy. Background information and current year budget highlights of the insurance funds are discussedonthefollowingpages.

Insurance Funds (continued)

Self-funded Employee Medical Program

The District offers medical, dental, and life insurance to all employees. Employees may purchase optionaldependentcoveragethroughpayrolldeduction.Thesebenefitsarefundedbyacombination ofDistrictcontributionsaswellascommercialinsurancepremiums.

TheDistricthasestablishedaself-insuredgrouphealthanddentalinsuranceprogram,withpremiums 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 administeredthroughaprivatecontractor.

Employeespayanominalamountforindividualmedicalanddentalcoverageandpayapproximately 30%to36%ofthecostfordependentcoverage.Afteremployeepaymentofspecifieddeductiblesand co-payments for medical and dental services, the Plan covers the remaining authorized charges in total. The budget for FY2025 includes an employer contribution increase of 0% to cover anticipated expendituresneeds.

Funds (continued) Self-funded Employee Medical Program (continued) FY2025Self-fundedEmployeeMedicalProgramBudget

Insurance Funds (continued)

Post-Employment Insurance

TheDistricthasestablishedapost-employmentinsurancefundtoaccumulatefundsnow,whichwill 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 determinedbyanactuarialstudyasrequiredbyGASB75.Theaccumulatedfundswillonlybeusedfor post-employment insurance. However, the District’s Board does reserve the right to use the reserve funds for unforeseen emergencies. FY2025 funding of $283,000represents 1.3% of total operations. AsofJuly2023,theDistricthaseighteen(18)eligibleparticipantsinthepost-employmentinsurance plan.

FY2025Post-EmploymentInsuranceBudget

Insurance Funds (continued)

Worker's Compensation

The District established a separate insurance fund for worker’s compensation, which will facilitate allocationofcoststorespectivedepartment,division,andsectionbudgets.TheSafetyOfficeractsas liaison with the insurance carrier to administer claims and to minimize future claims by providing trainingandequipmentdesignedtopreventinjuries.Thebudgetfor FY2025doesnotincludeanincrease in contributions

Insurance Funds (continued)

General Liability

The District’s general liability insurance fund was established to allocate insurance costs to all departments, divisions, and sectional budgets, provide funds for payment of no-fault sewer backups and establish reserves to offset future unanticipated increases in sewer back-up liabilities in excessofbudgetedamounts.Thebudgetfor FY2025does notincludean increasein contributions.

FY2025GeneralLiabilityFinancialPlan

 Replacement Funds 

Replacement & Equipment Funds

Overview

The replacement funds are funded through annual appropriations from the Operations and MaintenanceFundBudget.TheDistricthasestablishedthree(3)replacementandequipmentfundsas part of its sewerrate stabilization strategy, with fourth reservefund required under the Bond Order. Backgroundinformationandcurrentyearbudgethighlightsofthereplacementandequipmentfunds arediscussedonthefollowingpages.

Replacement & Equipment Funds (continued)

Fleet & Heavy Equipment Fund

TheDistricthasprojectedreplacement datesand estimatedpricesforallvehiclesandconstructiontype 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 equipmentasindicatedintheplan’stimetable.TheFY2025contributionis$595,000,withanticipated expendituresof$716,432,including(1)Full-sizePickup,(1)1/2-TonPickup, (1)1-TonUtilityPickup,(1) AWDSportUtilityVehicle,(1)CCTVVan,and(1)MidsizeExcavator.

FY2025Fleet&HeavyEquipmentFundBudget

Replacement & Equipment Funds (continued)

Wastewater Treatment Plant Replacement

Thereplacementfundforthewastewatertreatmentplantwassetuptodevelopareservetoaddress 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 FY2025 contribution is $250,000 with anticipated expenditures of $303,500 including General Rehab, Atlas Compressors and Dryers, Atlas Purge Air Blowers, Vortec Grit System at Headworks, Raw Pumps, RBC System, Intermediate Pumps, Solids Thickening and Dewater, Incineration, Chlorination/Dechlor, RBC Blower Motor Rebuild, Electrical MCC,BeltFilterPressandHydro.

FY2025WastewaterTreatmentPlantFundBudget

Replacement & Equipment Funds (continued)

Pump Maintenance Replacement Fund

The replacement fund for the pump stations was set up to develop a reserve to address general equipment replacement cost at thesefacilities. A similar strategy of periodic, uniform contributions fromtheOperationsandMaintenanceFundandwithdrawalsforplannedequipmentrehabilitationor replacement are employed. The FY2025 contribution is $60,000 with anticipated expenditures of $107,500, which includes General Pump Station Rehab and Equipment; and rehab at the following pump stations: Biltmore Lake #2, Black Mountain, Carrier Bridge, Reems Creek, and Waightstill Mountain.

FY2025PumpMaintenanceReplacementFundBudget

Replacement & Equipment Funds (continued)

Capital Reserve Fund

This fund is mandated by the Bond Order to contain six percent (6%)or suchgreater percentage, as maybedeterminedfromtimetotimebytheBoard,oftheamountshownbytheAnnualBudgettobe necessaryforcurrentexpensesforthecurrentFiscalYear.Asthisfundistobetappedonlyforunusual and unforeseen expenditures, none is budgeted. As this fund is to be tapped only for unusual and unforeseenexpenditures,noneisbudgeted.TherewillbenotransferstothefundtomeettheFY2025 requirements.

FY2025CapitalReserveFund

NOTE: Ending balancemustbeatleast6% ofthe annualO&Mcurrent expenses. FY2024-2025 O&MBudget ($22,787,889- $905,000transfer to reserves - $162,825capital equipment) x6%= $1,303,204)

This pageintentionally leftblank.

 Capital Improvement Program

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 constructingthesecapitalprojectsincludereplacingandrehabbingstructurallydefectivesewerlines, handlingwet-weatherflowconditions,improvingtheperformanceatthewastewatertreatmentplant, 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. 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, meet to review the costs, locations, and necessity of proposed projects and make a recommendation totheDistrict’sBoard.AcopyoftheCIPsummarysheetsfollowsinthesucceedingpagesofthisbudget document. A separate document compiling individual pages for each project with detailed costs and location map as presented to the CIP Committee is posted on the MSD website at www.msdbc.org.

The District maintains a Ten-Year CIP and rehabilitates approximately 40,000 Linear Feet (LF) of the collection system every year. The ten-year CIP prioritizes projects identified by the Board as fulfilling the District’s mission butdoesnot obligate Districtresources for their constructionpast the end ofthe current budget year.

Capital Improvement Program

(continued)

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.

The Board has consistently financed its Capital Improvement Program through revenue bonds and pay-as-you-go moneys. As of June 30, 2024, the District will have $76.4 million in outstanding revenue bond debt, with total debt service of $8.7 million due before the end of the fiscal year. 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 chargesso that income available for debt service will not be less than 120% of fiscal year debt service requirement.

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 plants.

As part of this comprehensive evaluative process, the District developed and implemented a program tomonitorwastewaterflowsfromthevariouspartsoftheseweragesystem. Theflowmonitoringdata was used to develop a computer hydraulic model of the flows of the seweragesystem to help identify and remediate the worst areas of inflow and infiltration.

Capital Improvement Program

(continued)

Background (continued)

In1999,MSDbegananaggressivelinecleaningandtelevisioninspectionprogramwhereintheDistrict contractedwithoutsidecompaniestocleanthepipeswithwaterunderhighpressureandthentosend 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. Staff recently updated the District’s Pipe Rating Program to include additional parameters over previous versions. Each line project now has an objective numerical rating based upon overflow history, structural issues, customer service requests, and impacts to surface waters. This rating is then used to objectively prioritize collection system projects within the CIP each fiscal year.

Pipe Rating minimizes costs byhelpingthe Districtfocus 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 Planning

 Facilities Plan

The District completed an update to this Facilities Plan in 2015. This significant, comprehensive study examined the various unit processeswithin theplant, with a focus on headworks, biological treatment alternatives, and the future regulatory requirement. After extensive research of various options, the Plan recommends Plant Headworks Improvementsaddingnewgrit removal, afinescreeningsystem,storageforpeakflows(using existing decommissioned digesters), and chemically enhanced primary clarification.

Capital Improvement Program (continued)

Background (continued)

Wastewater System Master Planning (continued)

 Facilities Plan (continued)—

Construction of the High-Rate Primary Treatment project was completed earlier this year and the system is still being optimized by the process manufacturer, Veolia. The Plant Headworks (completed inearly 2019)andHigh-RatePrimaryprojectsaretheshortandmid-termrecommendationsofthePlant Facility Plan. These two projects totaled approximately $28 million and will significantly improve the plant’s treatment process.

Another major project in the ten-year CIP is the Solids Handling Capacity Improvements project. This project will replace the existing fluidizing bed incinerator which is over thirty years old and has undergone multiplerebuilds. Theproject will increasecapacity ofthe solidshandlingprocessesatthe plant to accommodate future growth and solids generation. The Solids Handling Preliminary Engineering Report (currently in progress) will provide a phased plan and CIP recommendations for solids handling processes at the plant, including the replacement of MSD’s fluidizing bed incinerator.

 Collection System Master Plan—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 providesfor orderly growth of the sewer system to meet the needs of the region as a whole for the future. This plan was updated in 2021 to include the Cane Creek Water and Sewer District.

Types of Projects

The projects in the CIP are classified into several types, based on the objective of the project. The projects are determined and scheduled based on the Master Plan, the pipe-rating score, and other factors impacting the overall well-being of the District.

Capital Improvement Program (continued)

Types of Projects

(continued)

The District’s Capital Improvement Program is divided into the following six areas, generally based upon type of project or expense category:

 Interceptor & Wet Weather Rehabilitation

 General Sewer Rehabilitation

 Private Sewer Rehabilitation

 Treatment Plant, Pump Stations, and General Capital Improvements

 Design, ROW, and Construction Management Expenses

 Reimbursement Projects

In accordance with the State Collection System Permit, the District maintains a CIP, which details necessary system improvements. The state permit requires a minimum of three years in the CIP; however, the District utilizes a ten-year window for better planning and financial projections. The District rehabilitates approximately 40,000 LF of the collection system each year.

The Interceptor and Wet Weather Rehabilitation projects address the third prong of the Master Plan by providing increased system conveyance. The General Sewer Rehabilitation projects combine the first and second prongs by surveying all lines to plan maintenance activities and to improve the structuralconditionofthesystem.ThePrivateSewerRehabilitationprojectshavethe sameobjectives astheGeneralbutareseparatelypresentedtoaddressenvironmentalconcernsresultingfromsewers that were not publicly maintained at the time the District was formed. A limited amount of funding is budgeted annually to address the problem locations on a “worst first” basis as identified.

Capital Improvement Program

(continued)

Types of Projects

(continued)

Proposed FY2024-2025 Budget

The proposed Capital Budget for FY2025 is $37,475,712 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 contingencyforeachproject. Thisismoreefficientandcontinuestoprovidesufficientreservesforthe District’s capital program. Additionally, a proposed budget for Reimbursement Projects totaling $183,000.Forthesetypesofprojects,theDistrictwillreimburseadeveloperforconstructingasystem, which will serve larger areas upstream of their development.

Capital Improvement Program (continued)

Proposed FY2024-2025 Budget (continued)

Total project costs over the ten-year window are estimated at $610.7 million. Costs are updated each year during budget preparation to accurately reflect current bid pricing and market conditions. Included in future years’ is an inflation factor of 3.35%, which is a ten-year average of the annual increases in the ENR Construction Cost Index. This factor is also updated each year.

Approximately 80infrastructureprojectsareincludedin theCIPforFY2025,rangingin lengthfrom150 linear feet to over 18,000 linear feet. Four (4) new Collection System Projects have been added to the CIP for FY2025 and beyond. In-house forces as well as outside contractors will beused to rehabilitate or replace approximately 40,000 linear feet per year.

Current Year Highlights

 Collection System Capital Improvements:

Significant collection system projects currently underway or completed over the past year are Cherokee Road, Buchanan Avenue, CIPP Lining Contract No. 9, and Christian Creek Interceptor. Combined with in-house and developer-constructed rehabilitation projects, the total rehabilitated footage anticipated for FY2023-2024 is approximately 34,090 LF.

Capital Improvement Program

(continued)

Current Year Highlights (continued)

 Collection System Capital Improvements: (continued)

The Carrier Bridge Pump Station (the District’s largest) will also be replaced in the near future. Carrier Bridge is a regional pump station which serves large areas of Buncombe County and Northern Henderson County. This significant $85 million project will replace an aging pump station first constructed in the 1960’s and upgraded multiple times over the years. Final design is underway and construction is expected to begin Fall 2025.

Design of the new Weaverville Pump Station and force main was completed this fiscal year and the project was publicly bid in December 2023. The project is currently in a 6-month “Construction Administration” period designed to procure long-lead time equipment and materials prior to mobilizing construction equipment to the site. The Construction Administration period is running in parallel with right-of-way acquisition which is anticipated to be complete early in FY2024-2025. The pump station serves Weaverville and the Reems Creek Valley and is being replaced and upsized to accommodate anticipated growth through the year 2070. Total project costs exceed $24 million.

Capital Improvement Program (continued)

Current Year Highlights (continued)

 Wastewater Treatment Plant Capital Improvements:

 Plant Headworks Project: This $9.6 million project consists of a new grit removal system to replace the existing problematic system, a fine screening facility which supplements the WRF’s existing bar screens, and storageatthe Plant using existingdecommissionedtanksto provide more effective treatment during peak flow events. In addition, by removing more gritthanthepreviousprocess,itwill helptobetterprotect downstreamprocesseswithinthe plant and will significantly improve the plant’s treatment process. The project was completed in FY2019.

 High-Rate Primary Treatment Project: This $17.2 million project will provide primary settling of solids to enhance the downstream biological process which will be upgraded starting in FY2028. Construction was completed in 2022 and is currently undergoing performance testing.

 Biological System Upgrades: This $226.7 million project is being driven by the future water quality regulations as set forth in MSD’s NPDES permit (effluent discharge permit). Compliance with effluent ammonia levels must be achieved by December 2037 and will requiresignificant upgradestotheexistingbiologicaltreatment system.Designwillbegin in FY2027 with construction starting in FY2031.

Capital Improvement Program (continued)

Program Summary

FY24-25FY25-26FY26-27FY27-28FY28-29

Interceptor&WetWeatherRehabilitation BeaverdamCreekWW(CDM#10)

Thiswasidentifiedasapotentialrehabilitationproject toimprovewetweatherflowconveyance,asspecified intheMasterPlandevelopedbyCDM.Itislocatedin theNorthAshevilleareaandiscomprisedof5,500LF of8-inchthrough12-inchdiameterpipe.

BiltmoreWW(CDM#3) ----15,4001,177,000

Thiswasidentifiedasapotentialrehabilitation projecttoimprovewetweatherflowconveyance,as specifiedintheMasterPlandevelopedbyCDM.Itis locatedintheBiltmoreareaneartheSwannanoa Interceptor,andiscomprisedof2,200LFof18-inch diameterpipe

ChristianCreekInterceptor

ThisprojectislocatedalongChristianCreek,between US70HwyandI-40,eastofAsheville.Theproject includesthereplacementofapproximately12,226LF ofexisting8-inchVCPsewerpipewithnew8",12"and 16"DIP.Theexistinglinesservealargecollectionarea andareundersized.Additionally,theyareinpoor structuralconditionandhaveexperiencedmultiple SSO's.

375,392-----

DingleCreekInterceptor -----3,028,000

ThisprojectislocatedalongDingleCreekbetween theBlueRidgeParkwayandtheRambleSubdivision. Theexisting18-inchvitrifiedclaypipemainwillbe replacedwithanew18-inchductileironpipemain. Theapproximatelengthofthisprojectis7,871LF.

LowerSwannanoaInterceptor

Thisprojectistoeliminateproblemsassociatedwith thesplitterboxandthedownstreamtwin36-inch lines.Portionsofthelinewereidentifiedfor replacement/upsizinginthe2001CDMMasterPlan. The2019CDMPERidentifiedapprox.6,980LFof existing36-inchlinetobereplacedwithnew60-inch pipetoimproveconveyancearoundtheconfluenceof theSwannanoagravitymainandCarrierBridgeforce main.

47,000436,25030,000100,0008,850,2068,871,206

SouthSwannanoaWW(CDM#4) -57,0006,000-1,529,0004,319,000

Thiswasidentifiedasapotentialrehabilitationproject toimprovewetweatherflowconveyance,asspecified intheMasterPlandevelopedbyCDM.Itislocatedin theBiltmoreareanearSweetenCreek,andis comprisedof8,040LFof18-inchthrough42-inch diameterpipe.

Capital Improvement Program (continued)

Program Summary (continued)

Thisprojectislocatedinthe“SouthSlope”areaof Asheville.TheprojectbeginsattheintersectionofS. FrenchBroadAveandRalphSt.,runsnortheast crossingChoctawSt.andMcDowellSt.,andending neartheintersectionofSouthsideAve.andCoxeAve. Theexistingpipesareinpoorconditioncontributing toI/Ithatsurchargesthelineduringheavyrains.

SUBTOTAL

422,392493,25036,000138,50010,412,60622,571,706 InflationperENRConst.CostIndex1.00001.03351.06811.10391.14091.23256 SUBTOTALwithinflation 422,392509,77438,452152,89111,879,58727,820,914

Capital Improvement Program (continued)

Program Summary (continued)

ThisprojectisintheStarnesCoveareaofwest Asheville.TheprojectrunsalongCanieCreekand northtoPisgahViewRoadandsouthtoStarnesCove Drivethroughresidentialproperty.Theexisting6-inch and8-inchclaypipeshavenumerousjointand structuraldefectsthathasledtorootproblems, infiltration,andoverflows.

ArlingtonStreet -----1,452,500

ThisprojectrunsalongArlingtonSt.indowntown Asheville.TheprojectbeginsonFurmanAve.and endsatTownMountainRd.Therearenumerous structuralproblemswithinthelineswhichcontribute toI/Iissues.

AshevilleRd@USHwy70 ----43,7602,412,750

ThisprojectislocatedinSwannanoabetweenI40and US70.Consistsof6"and8"VCPthathasheavyI&Iand rootinstrusion.Couldbeconsideredaspartofalining contract.

AtkinsStreet --2,60052,000714,000-

ThisprojectislocatedinArdenjustnorthofLake Julian.Approximately1,833LFofexisting6-inch vitrifiedclaypipewillbereplacedwithnew8-inch ductileironpipe.Theexistingsewerlineisinpoor conditionduetoroots,fractures,andsagsintheline. Thelineisundersizedandhasfloodedhousesinthe area.

AvonAvenue@HaywoodRoad

ThisprojectislocatedinWestAshevillenearAvon Ave,approximately0.25milewestoftheHaywoodRd. bridge.Approximately218LFofexisting6-inchand8inchvitrifiedclaypipewillbereplacedwithnew8-inch ductileironpipe.Theexistingsewerlineisinpoor conditionduetorootsandcannotbewashedor roddedduetolackofaccess.

BealeRoadatCopneyLane

ThisprojecttiesintotheLakeJulianPhase4project justwestofGlennBridgeRoad,extendingnorthward toDuckerRoad,andLowerGlennBridgeRoad.It servesseveralmajormanufacturingsites.Thelines areinpoorconditionwithbrokensegmentsand leakingjoints,haveresultedinSSO's,andaredifficult toaccessformaintenanceandrepairs.

53,500161,100----

20,000217,50047,0002,019,000--

Capital Improvement Program (continued)

Program Summary (continued)

ThisprojectislocatedinSouthAshevillealong propertiesonBellevueRoadandwillreplace1,100LF of6-inchVCPandPVC.Theexistinglineisinpoor conditionandhastoomanypointrepairs.

BentTreeRd@OldTollRd

ThisprojectislocatedinAshevilleintheTown Mountainarea.TheprojectrunsalongOldTollRd througharesidentialpropertyandendsatBentTree Rd.Theexisting4-inchclaysewerlineisundersized andinpoorstructuralcondition.

BraddockWay-PRP20002

Thisprojectwillreplace,line,andpipeburstseveral existingsewermainsinParkAvenueandBraddock Waysubdivisions.Problemswiththeselinesinclude leakingjoints,brokenpipes,highinflowand infiltration.Insomeareas,theexistinglineswillbe relocatedfromprivatepropertytopublicrightsofway forbetteraccessandmaintenance.

CalvinTrail@GreybeardTrail

ThisprojectislocatedinMontreatandconsistsof replacingtheexisting780LFof6”VCPlineonCalvin TrailtotheintersectionofGreybeardTrailwith8”DIP. Theexistinglineisinseverelypoorstructural conditionwithmultiplefracturedsections.

-7,0204,40034,000335,450-

CentralAvenue@I-240 6,00027,000-423,000--

ThisprojectislocatedindowntownAshevillenear WoodfinStreetandiscomprisedof990LFof12-inch ductileironpipe.Theexistinglineis6,10,and12-inch vitrifiedclaypipe.

ChathamRoad

ThisprojectislocatedinNorthAshevillenearW.T. WeaverBoulevardandiscomprisedof1,330LFof8inchductileironpipe.Theexistinglineis6-inch vitrifiedclaypipeinpoorconditionwithheavyroot intrusion.

-44,5001,000-547,625-

CovewoodTrail@ChunnsCoveRoad -----453,500

Thisprojectwillreplacetheexisting6-inchsewermain fromChunnsCoveRdthroughresidentialproperty alongCovewoodRd.Thelineisoldvitrifiedclaypipeis undersizedandinpoorcondition.Thecurrent locationofthelinesarehardtoaccesswhichmake repairsdifficult.

Capital Improvement Program (continued)

Program Summary (continued)

ThisprojectislocatedsouthofElkMountainRoad betweenI-26andtheFrenchBroadRiver.Itis comprisedofapproximately1,204LFof8-inchductile ironpipe.Theexistingvitrifiedclaysewerlineisin poorconditionandhasexperiencedSSO's.

DoverStreet@MerrimonAvenue

ThisprojectislocatedinAshevilleacrossMerrimon AveofBearverdamLake.Thelineisan8"VCPthat laysflatwithstructuraldefects.Iflineisbeing replacedthenwouldmakesensetoreplacethenext5 upstreamsegmentsandplaceintheroadwithamore desirableslopethanexisting.

DruidDrive -----204,000

ThisprojectislocatedinWestAshevilleandis comprisedof500LFof8-inchductileironpipe.The existinglineisaging6and8-inchvitrifiedclaypipe, withmuliplestructuraldefects,bendsthatcannot passaCCTVcamera,andheavyrootintrusion.

EastChestnutAvenue@FivePoints 3,500-72,000147,3002,5001,836,750

ThisprojectislocatedinNorthAshevilleandis comprisedof5,225LFof8-inchductileironpipe.The existinglineisaging6,8,and10-inchVCPinpoor shapewithmultiplestructuraldefectspersegment.

EdwardsAvenue@US70Hwy 16,800-6,80039,000905,600-

ThisprojectislocatedinSwannanoa,approximately 0.5mileeastofthePattonCoveRdexit(I-40exit59). TheprojectincludespipereplacementonEdwards Ave,RichmondAve,andYoungSt.Approximately 2,400LFofexisting6-inchand8-inchvitrifiedclaypipe willbereplacedwith8-inchductileironpipe.Thisline wasconstructedinthe1920sandhasnumerous structuraldefectswhichcontributedtooneflooded structure.

ElkMountainPlace

ThisprojectislocatedsouthofElkMountainRd. betweenI-26andtheFrenchBroadriver.Itis comprisedofapproximately4,137LFof8-inchductile ironpipe.Theexistingvitrifiedclaysewerlineisin poorconditionandhasexperiencedSSO's.

1,503,345-----

Capital Improvement Program (continued)

Program Summary (continued)

GeneralSewerRehabilitation

ElkParkDrive-PRP35001

ThisprojectislocatedinWoodfinandiscomprisedof 2,242LFof8-inchductileironpipe.Theexistinglineis 6-inchvitrifiedclaypipeandPVCwithnumeroussags androotproblems,aswellasaPVCcreekcrossing, whichwillbereplacedduringconstructionofthenew line.

FairmontRoad -25,000-10,000162,5001,516,000

ThisprojectislocatedinNorthAsheville approximately0.25mileseastofCharlotteStreet.The projectwillrunalongroadsandpropertiesfrom GlendaleRoadtoSunsetDrive.The6-inchclaylines areinpoorconditionwhichhavecausedmanhole overflowsandSSOs.

ForestdaleDrive

ThisprojectbeginsatCarnellStreetandendsat CaribouRoad.Thesystemrunsalongsideroadsand propertiesparalleltoHendersonvilleRoad.System Servicescrewshavereportednumerousproblems includingmultipleSSO's.Theexistingpipeswillbe replacedwith8-inchductileironpipe.

-30,500228,00010,0001,012,000-

FourInchMain-CollegeStreet --6,0008,000300,000426,750

ThisprojectislocatedindowntownAshevillenear BeaucatcherTunnelandiscomprisedof8-inchductile ironpipe.Theexistinglineis4-inchOrangeburgand6inchvitrifiedclaypipeinpoorcondition,withseveral buildingsovertheexistingline.

HarmonyLane -3,000-303,000--

ThisprojectrunsalongHarmonyLaneinAsheville's Oakleyarea.Theexistingsystemhastwoparallellines thatcollectonbothsideofthestreet.Problemswith thesystemconsistofrootintrusion,pooraccessfor maintenance,andcloseproximitytohouses.

HazelMillRoad@RichlandStreet

ThisprojectislocatedinWestAsheville,nearthe BowenBridgeandconsistsof4,400LFof8-inch ductileironpipe.Thecurrentpipeis6-inch,8-inch clay,andPVC.Linesareundersizedandinpoor conditionwithmultiplepipesags,cracks,and fractures.

281,0001,920,000----

Capital Improvement Program (continued)

Program Summary (continued)

GeneralSewerRehabilitation

HillStreet@CrossPlace -2,200261,080--

ThisprojectrunsalongHillStreettotheintersection ofCrossPlaceabuttingtheI-240&I-26Interchange.It consistsofreplacingapproximately641LFofexisting 6-inchVCPwith8-inchDIP.Thelinehasnumerous structuralissues,experiencedfrequentstoppages, andfloodedstructuresovertheyears.

HowlandRoad@SunsetTrail 5,00066,000404,000---

Thisprojectwillreplaceanexisting8-inchmainfrom5 HowlandRoaduptotherearof371SunsetDrive. SystemServicesrecentlycompletedanotherportion ofthissystemduetoSSO'sandlinecondition.

InnsbrookRd@GPI

ThisprojectislocatedinNorthAshevillenear InnsbrookDrandtheGroveParkInn.5,730feetof8", 6",and4"VCPlinewillbereplacedwithductileiron. ThelinehasexperiencedseveralSSOs,flooded structures,rootissues,structuraldefects,andI&I.

40,100-30,000453,0001,945,575-

JohnstonBoulevard@ProvidenceRoad -12,00071,000823,000--

ThisprojectislocatedinWestAsheville, approximately0.6mileswestofNewLeicester Highway.Theprojectconsistsofreplacing2,000LFof existing6-inchvitrifiedclayandPVCpipewithnew8inchductileironpipe.Theexistinglinecontainsmany offsetjointsandbendsandisinpoorstructural condition.

JonestownRoad@RiversideDrive

ThisprojectislocatedupstreamfromMSD'sWWTP alongRiversideDriveonJonestownRoad.Itconsists ofapproximately1,992LFofexisting6-inchVCPtobe replacedwith8-inchDIP.Thissystemisfullof structuraldefects,hasheavyI&Iissues,and deterioratingmanholes.

50,500680,0006,500---

JoynerAvenue@AmboyRoad 317,000-----

ThisprojectislocatedinWestAshevilleandis comprisedof1,000LFof8-inchductileironpipe.The existinglineisaging8"VCPandPVCinpoorcondition, exposedinahillsidewitherosionissues.

Capital Improvement Program (continued)

Program Summary (continued) FY24-25FY25-26FY26-27FY27-28FY28-29

KimberlyAvenue@SedleyAvenue

ThisprojectislocatedinNorthAshevillealong KimberlyAvenue.Theexisting6-inchVCPwillbe replacedwith2,947LFof8-inchHDPEthroughpipe burstingoperations.This6-inchVCPlineisinpoor structuralcondition,rootspresentthroughout,misalignedjoints,andproblematicspurlines.

Lakeview@GlenFallsRoad

ThisprojectisjustsouthofBeaverLakeonLakeview Rd.,GlenFallsRd.,andthroughpropertiesonGlen FallsRd.Theexisting6-inchclaypipewillbereplaced with8-inchductileironpipe.SystemServiceshas experiencednumerousproblemswiththisline. Approximately1,450LFalongLakewviewRdwas removedfromthisprojectandwillbeconstructedby In-Housecrew.

LincolnAvenue

ThisprojectislocatedintheOakleyneighborhoodin southeastAsheville,justnorthofI-40.Itconsistsof replacingapproximately1,415LFofexisting6-inch vitrifiedclaypipewith8-inchductileironpipe.The existinglineisinverypoorstructuralcondition.

LiningContractNo.10 --3,000,000---

VariouslininglocatoinsthroughoutMSDsewerdistrict totalingto10,000linearfeet.

LoganAvenue 149,500930,300----

ThisprojectislocatedinWestAshevillenearCraven Streetandconsistsof2,150LFof8"DIP.Theexisting claypipeisundersizedandhasalargenumberof pipedefects.

LowerGlendaleAvenue ----16,8001,425,400

ThisprojectislocatedinS.E.AshevilleneartheOakley neighborhood.Itconsistsofreplacingapproximately 2,716LFofexisting10-inchand12-inchvitrifiedclay pipealongGlendaleAve.Theexistinglineissubjectto inflowandinfiltration,isinpoorcondition,and undersized.

ManettaRoad@JohnsonDrive

ThisprojectislocatedinNorthAshevillenear MerrimonAvenueandconsistsof6,500LFof8-inch ductileironpipe.Theexistingclaypipeisundersized, hasvoids,fractures,androotintrusionswhichhave contributedtomultipleSSO's.PortionsofOttariRd wereconstructedinFY22inconjunctionwithaCoA pavingproject.Theprojecthasapproximately5,340LF remaining.

1,000350,65014,0002,152,343--

Capital Improvement Program (continued)

Program Summary (continued)

ThisprojectislocatedindowntownAsheville,along McDowellStnearMissionHospital'smaincampus. Theexistinglineis6and8-inchvitrifiedclaypipe,with manystructuraldefects,requiringextensive maintenance.Thislinewillbereplacedwith approximately1,660LFof8-inchDIP.

MeadowRoad@TrainYard

ThisprojectislocatedinAshevilleonMeadowRoad betweentheBiltmoreEstateandAsheville-Buncombe TechnicalCommunityCollege.Itconsistsofreplacing 2,001LFofexisting6-inchVCPwithnew8-inchDIP. Theexistinglineisinpoorcondition,isundersized, andrunsunderneathvariousstructures.

MerrimonAve.@ClearviewTerrace -----307,906

ThisprojectislocatedalongMerrimonAvenue,inthe areaofClearviewTerraceandFarrwoodAvenue.The existinglineisanold4-inchmainthatisinverypoor conditionandwillbereplacedwithapproximately 500LFof8-inchDIP.

MontfordAvenue@MontfordPark 99,000564,500----

ThisprojectislocatedjustsouthofMontfordParkand includesthereplacementofapproximately1,129LFof existing8-inchVCPwithnew8-inchDIP.Theexisting pipehassags,multiplestructuraldefects,andareas wherethepipeisalmostnon-existent.

NewHawCreekRd@DogwoodGrove

ThisprojectisinEastAshevillenearHawCreekRoad andconsistsof3,000LFof8-inchductileironpipe. Existing4-inchand6-inchclaypipeisundersized,with fractures,rootintrusion,andmisalignedjoints. Existing8-inchductileironpipehascorrosionissues andexistingmanholesareinpoorcondition.

NewStockRoad

ThisprojectrunsalongNewStockRoadinWoodfin, beginningatNicholsHillDrive&NewStockRoad, runningunderI-26,andendingatWeavervilleRoad. Theexisting8-inchlineshavestructuralissueswhich haveledtorootintrusionandmultipleSSOs.

3,60050,75016,0001,000-904,500

37,00049,5003,037,000---

Capital Improvement Program (continued)

Program Summary (continued)

GeneralSewerRehabilitation

ThisprojectislocatedindowntownAshevilleand consistsof1,064LFof8-inchductileironpipe.The existing6-inchclaylineisundersized,hasmultiple structuralissues,andhascausedfloodedstructures.

OaklandDrive@ChurchStreet

ThisprojectislocatedinBlackMountainrunning throughpropertiesfromPineStreettoOaklandDrive. Theprojectwillreplace575LFof4-inchorangeburg and6-inchVCP.Theexistinglinesareinpoor conditionandhavetoomanypointrepairs.

OldTollRd.@BlueBriarRd.

ThisGeneralSewerRehabilitationprojectislocatedin NorthAshevillestretchingbetweenBlueBriarRd.and OldTollRd.Currentlythispublicsystemplannedfor rehabilitationconsistsofapproximately185LFof existing6-inchVCPtobereplacedwith8-inchDIP. This6-inchVCPsystemisfullofstructuraldefectsand bendsthatpreventpropermaintenance.

OldTurnpikeRd.@Azalea 10,00065,00011,000359,000--

ThisprojectislocatedinArdenoffofSwetenCreekRd andconsistsofreplacing6"VCPwith8"PVCand relocatingthelineaminimumof10'fromtopof streambank.Existing6"VCPisaknownsourceof heavyI/I,andcrossesthecreekmultipletimeswith potential ofSSO.

ParkwoodAvenue ---11,48585,350354,500

ThisprojectislocatedinWoodfin.Theexistinglineis approximately1,165LFof6"VCPwithknownSSO's andI/Iduetostructuraldefects.

RiversideDr.@WoodfinAve. ---7,00021,000264,500

ThisprojectislocatedinWoodfinandiscomprisedof 684LFof8"DIP.Existinglineis6"VCPisinpoor structuralconditionwithcracksandmisalignedjoints, givingahighpotentialoverflows.

RiverviewDrive --985,100---

ThisprojectislocatedinAshevilleneartheHaywood Rd.bridge.Theprojectconsistsofreplacingapprox. 2,302LFofexisting6-inchvitrifiedclaypipewith8inchductileironpipe.Theexistinglineisinpoor conditionandhasexperiencedmultipleoverflows.

Capital Improvement Program (continued)

Program Summary (continued)

ThisprojectislocatedoffofRosewoodAvenuein Montford,adjacenttoRiversideCemetery.This projectincludesthereplacementofapproximately 180LFof6-inchVCPpipewithnew8-inchDIP.The existinglineisinpoorstructuralconditionandis locatednexttoabrokenstormdrain,causingheavyI &I.

RoyalPinesDrive-PRP47009

ThisprojectislocatedinSouthAshevilleandis comprisedof2,888LFof8-inchductileironpipe.The existinglineis8-inchvitrifiedclaypipewhichhashad ahistoryofrootproblems.

SandHillRoad@BakerPlace 822,500-----

ThisprojectislocatedinWestAshevilleandis comprisedof1,582LFof8-inchductileironpipe.The existinglineisa6-inchVCPwithmultiplestructural defectsandaccessissuesduetobeinglocatedunder severalhouses.

StarmountDr. -6,00014,10020,000-234,500

ThisprojectislocatedinWestAshevillenearN. LouisianaAveandiscomprisedof775LFof8"ductile ironpipe.Theexistingsewerlineis8"VCPandsteel, withheavyrootinstrusionandsignificantstructural defects.TherehavebeennoSSO's,butthelinehasa highpotentialforleaks,whichwillgoundetecteddue totheheavilywoodedlocation.

StratfordRoad ----12,500878,500

ThisprojectislocatedinN.AshevillealongStratford Road.TheprojectisacontinuationofStratfordRd.@ OxfordCourt.Thelinesrunthoughproperties alongsideastream.Theexisting6-inchvitrifiedclay pipeisinpoorstructuralconditionwhichhasallowed heavyinfiltration.

SulphurSpringsRoad@CovingtonStreet 18,000180,00032,000606,000--

ThisprojectbeginsintheareaoftheSulphurSprings Road/DelawareAvenueintersectionandrunsthrough thebackpropertiesalongBelmontAvenue.The existing6-inchclaypipewillbereplacedwith8-inch ductileironpipe.The6-inchclaylinehashad numerousproblemsandrunsunderahouse.

Capital Improvement Program (continued)

Program Summary (continued)

GeneralSewerRehabilitation

SweetenCreekRoad@BuckShoalsRoad

ThisprojectislocatedinRoyalPinesonBuckShoals RoadbetweenHendersonvilleRoad(US25)and SweetenCreekRoad(US25A).Approximately790LF ofexisting6-inchvitrifiedclaypipewillbereplaced with8-inchductileironpipe.Theexistinglineisin poorconditionandisundersized.

SweetenCreekRoad@HolidayDrive

ThisprojectisinsouthAshevilleoffofSweetenCreek Road.TheprojectatSweetenCreekRoadbetween HolidayDriveandCarringtonPlaceandrunsnorthto CedarLanethroughresidentialproperty.Theexisting 6-inchand8-inchclaypipeshavenumerousjointand structuraldefectsthathasledtorootproblems, infiltration,andoverflows.

TunnelRoad@PleasantRidgeDrive --1,5001,000-61,750

ThisprojectislocatedinEastAshevilleandis comprisedof150linearfeetof8-inchDIP.The existingsewerlineis4-inchOrangeburgpipethat cannotbemaintained.

US70@JordanRoad

ThisprojectislocatedinSwannanoaalongUS70.The projectbeginsatMcBrayerAve.,crossesunderUS70 atMartinRd.,andendsatBurginsChapelRd.The existing8-inchvitrifiedclaypipeisinpoorcondition. Thisisapotentialliningproject.

WalnutStreet@N.LexingtonAvenue -8,000-606,000--

ThisprojectrunsalongWalnutStreetindowntown Asheville.TheprojectbeginsatN.LexingtonAvenue, runsalongWalnutStreetanddownthesideroadsof LangrenAlley,MarketStreet,LawyersWalk,andends nearthecornerofE.WalnutStreet.Theexisting6inchand8-inchclaypipeshavestructuralissuesand yearlymaintenanceisneeded.

WaynesvilleAvenue@BrownwoodAvenue -19,50028,000467,500-914,500

ThisprojectislocatedinWestAshevillebetween HaywoodRoadandCravenStreetandiscomprisedof 3,022LFof8-inchductileironpipe.Theexistinglineis 8-inchvitrifiedclaypipethatisinpoorconditionwith heavyrootintrusion,structuraldefects,andI&I problems,resultinginalonghistoryofSSO's.

Capital Improvement Program (continued)

Program Summary (continued)

GeneralSewerRehabilitation

ThisprojectbeginsonthewestsideofRiversideDrive, runseastcrossingRiversideDriveandcontinueson W.CityViewDrive.Theexisting6-inchclaypipewillbe replacedwith8-inchductileironpipeand8-inch HDPE.The6-inchclaylineisundersizedandhashad numerousproblemsthathasleadtoaSSO.

WildwoodPark

ThisprojectislocatedinWeavervilleatthecornerof NMainSt.andWildwoodPark.ItrunsalongN.Main StreetfromWildwoodParktoColemanStandalong CherrySt.Theexistingpipehasmultiplefractures, rootproblems,andrunsunderneathmultiple structuresmakingmaintenancedifficult.

WoodAvenue@ParkerRoad

ThisprojectislocatedinAshevillebetweenFairview Rd.andTunnelRd.andiscomprisedof1,050LFof8inchductileironpipe.Theexistinglineis8-inch vitrifiedclaypipethathasaccessissuesduetobeing builtover.Backupsonthislinehaveresultedina floodedhouse.

SSDRehabilitation&Replacement

Thislineitemisforthereplacementofcapitalassets usingin-houseconstructioncrewsandmaterials.This includesnewtaps,smallrepairs,lining,aswellas largerrehabilitationprojects.Alsoincludedispaving whenrequiredfortheserepairsandrehabilitation projects.Thetotalestimatedprojectcostshownisthe totalwithinthetenyearwindow.

SurveysforDesign

Newrehabilitationprojectsaregenerated continuouslythroughouttheyear.Thislineitem providesthesurveyingneedsforthesenewprojects, inorderthatpreliminaryworkmaybeginpriorto beingformallyincorporatedintothenextyear'sCIP. Thishelpstoensureprojectsarecompleted efficiently.

50,00050,00050,00050,00050,000250,000

SUBTOTAL $9,348,19512,953,420$13,675,117$17,692,928$14,685,210$50,831,451 $ InflationperENRConst.CostIndex1.00001.03351.06811.10391.14091.2550

Capital Improvement Program (continued)

Program Summary (continued)

PRIVATESEWERREHABILITATION

CarverAvenue@OwenbyLane

ThisprojectislocatedinBlackMountainjustnorthof US70Highway.TheprojectrunsalongCarverAve throughresidentialproperties.Theexisting4-inchand 6-inchclayprivatesewerisundersizedandinpoor structuralcondition.Theseissueshavecreated numerouscustomerservicecalls.

HomelandPark

ThisprojectislocatedinEastAshevillejustsouthof theintersectionofSwannanoaRiverRoadandTunnel RoadinHomelandPark.Thisprojectconsistsof921 LFofexisting4-inchVCPreplacingwithnew8-inch DIP.Theexisting4-inchprivateseweristhemainline forthissubdivisionandisfullofroots,whichhas triggerednumerousservicecalls.

FY24-25FY25-26FY26-27FY27-28FY28-29

25,000164,50040,000388,630--

OldCountyHomeRoadPSR 49,0002,413,000----

ThisprojectislocatedinWestAshevilleandis comprisedof507LFof18-inchductileironpipe,2,004 LF12-inchductileironpipe,and1,603LF8-inch ductileironpipe.Additionally,85LFof8"PVCforce mainwillbeinstalledtoredirectflowfromErwinHills PumpStationintothetopofthisrehabilitatedsystem. Theexistinglineisaproblematic4"and8"sewerline composedofPVCandVCPwithmanydefects.

InflationperENRConst.CostIndex1.00001.03351.06811.10391.1409-

Thisitemisforthereplacementofarcflashlabelson allMSD-ownedelectricalpanelswithintheDistrict (locatedatvariousMSDbuildings,pumpstationsand treatmentplant).Arcflashlabelsarerequiredbythe NationalFireProtectionAssoc.(NFPA)andwarnof potentialarcflashhazards.Labelingmustbeupdated everyfive(5)yearsperNFPA70,Section1160.16.

Capital Improvement Program (continued)

Program Summary (continued)

Thisprojectisthefinalandmostsignificant recommendationfromthePlantFacilitiesPlan.Itwill replacetheRotatingBiologicalContactors(RBC's)with analternativebiologicaltreatmenttechnology.This projectwillbedrivenbyregulatoryrequirements.

BuildingandFacilityRehabilitation

Thisitemisforthereplacementoflargercapitalitems suchasroofingsystems,HVAC,andsubcontractson buildingsandstructureswithintheMSDcampusand treatmentplantfacility.Totalestimatedprojectcost shownisthetotalwithinthetenyearwindow.

CarrierBridgePumpStationReplacement

ThisprojectwillincreasethecapacityoftheCarrier BridgePumpStationto40MGDtoaccommodate futuregrowthinsouthandwestAsheville,aswellas CCWSD.Thisprojectincludesreplacementofthe pumpstation,screening,odorcontrol,electrical building,andanemergencygenerator.Theproject alsoincludestwonew36-inchforcemainsanda60inchinfluentgravitylinecomingintothepump station.

CollectionSystemMasterPlanUpdate

TheDistrict'sCollectionSystemMasterPlanwas completedin2008andneedstobeupdated.The MasterPlanUpdatewillincludethemergerwithCane CreekWater&SewerDistrictandanyupdatesfrom MSDmemberagencies.

FlowMonitoring

Thisprojectisforexpensesrelatedtothecontinued operation,maintenance,andimprovementsofthe District'sflowmonitoringprogram.

HVACRehabilitation

ThisitemisforreplacementofHVACsystemswithin theMSDcampus,treatmentplantfacility,andpump stations.Totalestimatedprojectcostshownisthe totalwithinthetenyearwindow.

FY24-25FY25-26FY26-27FY27-28FY28-29

60,00060,00060,00060,00060,000300,000

611,50010,839,08031,000,00031,000,00010,530,000-

250,000-----

75,00050,00050,00050,00050,000250,000

70,00010,00010,00010,00010,00050,000

Capital Improvement Program (continued)

Program Summary (continued) FY24-25FY25-26FY26-27FY27-28FY28-29

HydroelectricPowerPlantRehabilitation

Thisprojectincludesanevaluationoftheexisting hydroelectricplantanditsaginginfrastructure.The studywillconsiderthecostbenefitofreplacing variouscomponentswithmoreefficienttechnology. Theprojectalsoincludesrehabilitationoftheinfluent barscreenstructure.

IncineratorRehabilitationFY24

Thisprojectisfortherehabilitationoftheincinerator andincludesreplacementoftheheatexchanger, preheatburnersystem,andhightemperature refractorylininginsidethefluidizingbedincinerator. Therefractorywaslastreplacedin2004andprotects thesteelshelloftheincineratorfromhightempsand corrosivegases.Theheatexchangerandpreheat burnerbothshowsignsofsignificantwearandneed tobereplaced.

IncineratorSandTransportSystem

Existingsystemisundersizedandreequiresroutine mainanencevisits.ReplacementoftheIncinerator SandTransportSystemwillconisistofreplacingthe sandsilo,newdustcollector,transportsystemand integratedcontrols,andsandreclaimingsystem.

Int.ClarifierEff.TroughRehab

Theintermediateclarifierwasplacedintoservicein 1990.Clarifiedwaterflowsupwardthroughoneof fourclarifierbasinsandoverflowsintoaseriesof aluminumeffluenttroughs.Thesetroughsareinpoor conditionandareleaking.Thisprojectincludes surfacepreparationandcoatingapplicationtomake theexistingtroughswatertightandresistantto furthercorrosion.

ITTPumpStationUpgrade

TheITTpumpstationislocatedintheBroadpointe IndustrialParkinsouthAsheville.Thestationis generallyinfairtopoorcondition.Additionalwetwell capacityandpumpingcapacitywillbenecessaryin thefuture.Theexistingaccesstothepumpstationis locatedinafloodplainareaandisunaccessablewith aflushertruck.Theprojectshouldinvolvethe negotiationofanewaccessroutethroughthe BroadpointeInd.ParkinadditiontothePSupgrade.

1,210,0001,200,0001,800,000---

275,000-----

1,490,0001,412,400----

299,8874,460,000----

Capital Improvement Program (continued)

Program Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

MCCReplacement 524,000-----

Thisprojectistoreplacetwoobsoletemotorcontrol centers(MCC),oneatthePlantOperations MaintenanceBldg.(#48)andanotherattheClarifier SwitchgearBldg.(#33).BothMCCareover30yrsold andinpoorcondition.ThePlantOpsMCCcontrolsthe constantpressurepumpsandother480Vloads,while theClarififerMCCcontrolstheintermediateclarifier drivesandsludgepumps.

MudCreekPumpStationReplacement

ThisprojectistoincreasefirmcapacityoftheMud CreekPumpingSystemandtoconsolidatethetwo existingpumpstationsintoasinglestation.The replacementprojectwillalsoincludeupgradesto pumpcontrolsandemergencybackuppowersupply.

PlantNPWFilterSystem

Thisprojectwillinstallafiltrationsystemaheadofthe non-potablewaterpumpsattheWaterReclamation Facility,andisintendedtomitigateproblemswithsilt anddebriscloggingindividualfiltersatvarious processesthroughouttheWRF.

15,000605,000----

100,000225,000----

RBCRemovalandReplacement 1,350,300-----

Thisprojectisfortheremovalofmuliptlebroken,nonfunctionalRBCunitsatthetreatmentplant.The brokenunitsdonotprovideanybiologicaltreatment andcreateadammingeffectinthebasinthat negativelyimpactsoperation.

SolidsHandlingCapacityImprovements

Thisprojectwillincreasethecapacityofthesolids handlingprocessesatthetreatmentplant.Additional capacityisneededtoaccomodatefutureflowrates andincreasedsludgegenerationfromtheHighRate PrimaryTreatmentprocess.APrelim.Engineering Reportwillconfirmexacttimingandcostsofthese capitalinvestments.Theprojectwillincludeanew incineratoranddewateringequipment.

SolidsHandlingPER 75,000-----

ThisprojectisforaPliminaryEngineeringReport(PER) thatwillevaluateandrecommendimprovementsof thesolidshandlingprocessesattheWater ReclamationFacility(WRF).ThePERwillincludea phasedplanforWRFupgradesnecessarytoreplace agingequipmentandtomeetcapacitydemansovera 30-yearhorizon.ThePERwillfocusonsolids thickeningandpumping,dewatering,anddisposal.

Capital Improvement Program (continued)

Program Summary (continued)

SouthStorageBuilding

ThisbuildingwillbelocatedatMSD'ssouthstorage facilityinArden.Thesiteusedtobethelocationofan oldwastewatertreatmentplantthatwasabandoned inthe1990's.Theexistingbuildingonthesiteis unusableinit'scurrentcondition.Thenewbuilding willbe800-1,000SF

WeavervillePumpStationReplacement 15,882,5005,851,450----

ThisprojectisforthereplacementofWeaverville PumpStationsNo.1&No.2.Heavygrowthhasledto anincreaseddemandforsewerallocationsin Weavervilleandasaresultbothstationsarelowon availablecapacity.Thisprojectincludesreplacing pumpstationNo.1,replacingtheexisting12"force mainwith18",andconvertingpumpstationNo.2into asmallerresidentialstation.PumpStationNo.1will bedesignedtopumpdirectlytotheWRF.

GeneralCapitalEquipment

Thisisforthepurchaseofcapitalequipmentinexcess of$15,000.Examplesincludepumps,plant equipment,computerservers,largeconcretesaws, etc.

SUBTOTAL

150,000150,000150,000150,000150,000750,000

Capital Improvement Program (continued)

Program Summary (continued)

Design,Row,&ConstructionManagement Expenses

ThislineitemisforexpensesrelatedtotheDistrict's CapitalImprovementProgram(CIP).Includedare salariesfortheCIPDivision,capitalequipment,and bonddebtexpensesrelatedtothefinancingoftheCIP program.

Thisisforreimbursementsforextensionsthatqualify undertheDistrict'sExtensionPolicy.Refertothe "PolicyandProceduresfortheExtensionofSewer Service"forfurtherinformation.FY24-25includes $100kforunanticipatedreimbursementsplus reimbursement/easementacquisitionforDulce Lomita-FailingSepticAgreement($33,000)and MeribelAffordableHousingReimbursement ($50,000.00).

Capital Improvement Program (continued)

Impact of CIP on Operations

One of the purposes of a budget document is to describe the impact of significant non-routine capital expendituresonagovernment’scurrentandfutureoperatingbudgets.Formostmunicipal andcounty governments, non-routine capital improvements consist of expansion of facilities, which often result in higher operating costs. For example, larger buildings increase utility expenses, and new structures suchaslibrariesorswimmingpoolsinvolvehiringadditionalstaff. Inaddition,formostmunicipaland county governments, non-routine capital improvements are, for the most part, based upon the decisions of the local governing authority.

The District’s CIP is different in two respects. First, almost all non-routine capital expenditures involve rehabilitation of already existing sewer pipe infrastructure, and secondly, the District’s capital improvements to infrastructure are mandated by the state environmental regulatory department, imposing limits on discretionary action and cost. Through major capital improvements to the sewer collection system, the District expects to realize long-term cost reduction in wastewater treatment operations.

DuethenatureofupcomingCapitalImprovements attheWWTP,impactson operationshavenotbeen identified in the early staged of planning. The District hopes tohave aclearer picture in the next fiscal year, after Solids Handling and Biological PER’s have been completed.

Thefollowingdetailillustratestheknown impactof theCapitalImprovementProgramontheDistrict’s current and future operational budgets.

Capital Improvement Program (continued)

Operational Impact Summary

FY24-25FY25-26FY26-27FY27-28FY28-29

Interceptor&WetWeather

Rehabilitation

BeaverdamCreekWW(CDM#10) ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

BiltmoreWW(CDM#3) ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ChristianCreekInterceptor ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

DingleCreekInterceptor ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

LowerSwannanoaInterceptor ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SouthSwannanoaWetWeather ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

TownBranchInt-PhaseIII ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Interceptor&WetWeather

Rehabilitation ------

GeneralSewerRehabilitation

AntiqueLane@CanieStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ArlingtonStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

AshevilleRd@USHwy70 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

AtkinsStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

AvonAvenue@HaywoodRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

BealeRoad@CopneyLane ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

BellevueRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

BentTreeRd@OldTollRd ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

BraddockWay-PRP20002 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

CalvinTrail@GreybeardTrail ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

CentralAvenue@I-240 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ChathamRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

CovewoodTrail@ChunnsCoveRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

CubRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

DoverStreet@MerrimonAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

DruidDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

EastChestnutAvenue@FivePoints ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

EdwardsAvenue@US70Hwy ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ElkMountainPlace ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ElkParkDrive-PRP35001 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

FairmontRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ForestdaleDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

FourInchMain-CollegeStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

HarmonyLane ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

HazelMillRoad@RichlandStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

HillStreet@CrossPlace ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

HowlandRoad@SunsetTrail ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

InnsbrookRd@GPI ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

JohnstonBoulevard@ProvidenceRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

JonestownRoad@RiversideDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

JoynerAvenue@AmboyRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

KimberlyAvenue@SedleyAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

Lakeview@GlenFallsRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

LincolnAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

LiningContract#10 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

LoganAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

LowerGlendaleAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ManettaRoad@JohnsonDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

McDowellStreet@LilyCarmichaelDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

MeadowRoad@TrainYard ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

MerrimonAve@ClearviewTerrace ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

MontfordAvenue@MontfordPark ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

NewHawCreekRoad@DogwoodGrove ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

NewStockRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

NorthMarketStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

OaklandDrive@ChurchStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

OldTollRoad@BlueBriarRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

OldTurnpikeRoad@Azalea ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

ParkwoodAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

RiversideDrive@WoodfinAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

RiverviewDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

RosewoodAvenue@RiversideCemetery ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation

RoyalPinesDrive-PRP47009 ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SandHillRoad@BakerPlace ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

StarmountDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

StratfordRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SulphurSpringsRoad@CovingtonStreet ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SweetenCreekRoad@BuckShoalsRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SweetenCreekRoad@HolidayDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

TunnelRoad@PleasantRidgeDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

US70@JordanRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

WalnutStreet@N.LexingtonAvenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

GeneralSewerRehabilitation WaynesvilleAvenue@Brownwood Avenue ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

W.CityViewDrive@RiversideDrive ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

WoodAvenue@ParkerRoad ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SSDRehabilitation&Replacement ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

SurveysforDesign ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

GeneralSewerRehabilitation

PrivateSewerRehabilitation CarverAvenue@OwenbyLane

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

HomelandPark ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

OldCountyHomeRoadPSR ------

NoImpacttoOperatingBudget-efficiencies gainedwillbeusedintheDistrict'scollector systempreventativemaintenanceprogram.

PrivateSewerRehabilitation

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

TreatmentPlant,PumpStations& GeneralCapitalImprovements

ARCFlashLabeling -----ImpacttoOperatingBudgetwillbenegligible.

BiologicalTreatment -----ImpacttoOperatingBudgetwillbenegligible.

BuildingandFacilityRehabilitation -----ImpacttoOperatingBudgetwillbenegligible.

CarrierBridgePumpStation Replacement -----ImpacttoOperatingBudgetwillbenegligible.

CollectionSystemMasterPlanUpdate -----ImpacttoOperatingBudgetwillbenegligible.

FlowMonitoring ------

ImpacttoOperatingBudgetwillbenegligible.

HVACRehabilitation -----ImpacttoOperatingBudgetwillbenegligible.

HydroelectricPowerPlantRehabilitation -----ImpacttoOperatingBudgetwillbenegligible.

IncineratorRehabilitationFY24 -----ImpacttoOperatingBudgetwillbenegligible.

IncineratorSandTransportSystem -----ImpacttoOperatingBudgetwillbenegligible.

IntermediateClarifierEffluentTrough Rehabilitatoin -----ImpacttoOperatingBudgetwillbenegligible.

ITTPumpStationUpgrade ------

ImpacttoOperatingBudgetwillbenegligible.

MCCReplacement -----ImpacttoOperatingBudgetwillbenegligible.

MudCreekPumpStationReplacement -----ImpacttoOperatingBudgetwillbenegligible.

PlantNPWFilterSystem ------

ImpacttoOperatingBudgetwillbenegligible.

Capital Improvement Program (continued)

Operational Impact Summary (continued)

FY24-25FY25-26FY26-27FY27-28FY28-29

TreatmentPlant,PumpStations& GeneralCapitalImprovements RBCRemovalandReplacement

ImpacttoOperatingBudgetwillbenegligible.

SolidsHandlingCapacityImprovements -----ImpacttoOperatingBudgetwillbenegligible.

SolidsHandlingPER -----ImpacttoOperatingBudgetwillbenegligible.

SouthStorageBuilding

ImpacttoOperatingBudgetwillbenegligible.

WeavervillePumpStationReplacement -----ImpacttoOperatingBudgetwillbenegligible.

GeneralCapitalEquipment

ImpacttoOperatingBudgetwillbenegligible. TreatmentPlant,PumpStations& GeneralCapitalImprovements

NoImpacttoOperatingBudget

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 Debt Financing 

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 debtfinancingactivities,theDistrictBoarddevelopedalong-rangeplantoutilizebondsandpay-as-you-go inacoordinatedcapitalimprovementplan.

Thiscombinedstrategyallowsformoreequitybetweenlong-termandnewratepayerswhileproviding the necessary funding for an adequately functioning system. Issuing debt provides the capital to rehabilitatecrumblinginfrastructurewhileallowingpresentandfutureratepayerswhowillenjoythe 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 adequateamountsformulti-million-dollarprojects.

TheDistrict’sbondsareratedbynationalratingagenciesasfollows:

In October 2021, the District received a ratings upgrade from AA+ to AAA from Fitch Ratings. Fitch Ratings recognized the District’s sound financial performance characterized by ample liquidity, healthydebtservicecoverage,andcomprehensivefiscalplanning.

Debt Financing

(continued)

Debt Management (continued)

The rating also incorporates MSD’s regional customer base, adequate system capacity, manageable debtlevels,andsatisfactoryprotectionsforbondholders.ThesehighratingsenabletheDistricttopay alowerrateofinterestthanmanyotherutilities,whichhasapositiveeffectonthecurrentandfuture budgets.

UnlikeNorthCarolina’scitiesandcounties,MSDdoesnothaveadebtlimit.However,provisionsinthe District’sBondOrderrequireminimumdebtcoverageof120%ofnetrevenuestobondeddebtservice.

TheBoardestablishedarevenuepolicy,whichsetsagoalfordebtcoverageratiotobeapproximately 150%forforecastingandplanningpurposes,realizingtheimpactoftheincreaseddebtcoverageratio onbondratings.

TheDistrictmaintainsaten-year forecasttobudgetcapitalimprovementsfinancedbyacombination of debt and current fees. Based on projections using modest, consistent rate increases and capital improvementprojectsasoutlinedintheDistrict’s10-yearCapitalImprovementPlan,anadditional$80 millionindebtisanticipatedtobeissuedinFY2027withoutaffectingtheplannedrateofusercharge increases.

Capital Projects Funding

Fundingforcapitalprojectscomesfromacombinationofrevenuebondsandpay-as-you-gofinancing. DetailsmaybefoundinthePolicies&BudgetProcesstabofthisbudgetdocumentwhereDebtPolicy is presented and, in the schedule, “Budget/Rate Forecast” which illustrates the timing of debt issues andaccumulationofrevenuesoverexpendituresanticipatedtobeavailable forcapitalfinancing.

Generally speaking, half of the funds for capital improvements come from debt financing, with the otherhalffundedbytheexcessofrevenuesoverexpenditures(pay-as-you-go).

Debt Financing

(continued)

Capital Projects Funding (continued)

During FY2018, the District issued $37.5 million fixed rate revenue bonds. $11.4 million was used to refund portions of the 2009A Series bonds. The remaining $26.1 million has been expended. The District will accumulate funding from operations to finance a portion of the capital budget until the nextdebtissuance,anticipatedtobeinFY2027.

As of June 30, 2024, the District will have $76 million par value of outstanding revenue bond debt. During FY2025, over $5.8 million in principal will be repaid. The District anticipates issuing an additional $80 million in revenue bonds in FY2027.Debt service fromthis future bondissuehas been includedintheDistrict’slong-termbusinessplanandsewerrateincreases.Asummaryofoutstanding debt at June 30, 2024 and anticipated principal repayment during FY2025 begin below and continue onthefollowingtwo(2)pages.

Debt Financing (continued)

Outstanding Debt as of June 30, 2024

Enka-Candler Water and Sewer District Bonds liability assumed by Metropolitan Sewerage District ofBuncombeCounty,NorthCarolinaon July2,1990asstatedinthesewerconsolidated agreement:

5.00%serialbondsassumedJuly2, 1990withmaturitiesoneachJune1 through2024varyingfrom$19,000to $64,000,interestpayableannually. $

RevenueBonds,Series2008AissuedtorefundSeries2005RevenueBonds Interestatvariableratesintheweekly mode,payablemonthly,dueserially until2031.

2009NorthCarolinaWaterPollutionControlRevolvingFundusedtoconstructcertainsewerage projects:

$672,980revolvingloanissuedAugust 18, 2009 unpaid principal sum is reduced by one-half as "Principal Forgiveness",interestaccruesat0%,20 annual installments May 1, 2011 to 2030.

RevenueBondsSeries2013issuedtorefundSeries2003andSeries2008BRevenueRefunding Bonds:

2.0%to5.00%serialbondsissuedMay 1,2013,withmaturitiesoneachJuly1, 2014 through 2029 varying from $1,065,000 to $4,255,000; interest payablesemi-annually

Debt Financing (continued)

Outstanding Debt as of June 30, 2024

RevenueBondsSeries2014issuedtoconstructcertainsewerageprojects:

2.0%to5.00%serialbondsissuedMay 21,2014,withmaturitiesoneachJuly1, 2015 through 2039 varying from $535,000to$1,430,000;interestpayable

5.00%termbondsissuedMay21,2014, at112.950%,dueJuly1,2039;interest payablesemi-annually.

RevenueBondsSeries2017issuedtorefundSeries2009Aandtoconstructcertainsewerage projects:

3.0%to5.00%serialbondsissuedJuly 11,2017,withmaturitiesoneachJuly1, 2018 through 2039 varying from $620,000to$2,260,000;interestpayable semi-annually

5.00%termbondsissuedJuly11,2017, at97.704%,dueJuly1,2042;interest

Aggregate Debt Service

Current Debt Service Structure as of June 30, 2024

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 Statistical Information 

Introduction

ThispartofMSD’scomprehensiveannualfinancialreportpresentsdetailedinformationasacontext for understanding what the information in the financial statements, note disclosures, and required supplementaryinformationsaysabouttheDistrict’soverallfinancialhealth.

Financial Trends

TheseschedulescontaintrendinformationtohelpthereaderunderstandhowtheDistrict’sfinancial performanceandwell-beinghavechangedovertime.



 Net Position by Component



 General Revenue by Source



 Expenses by Function

Revenue Capacity

These schedules contain information to help the reader assess the District’s most significant revenuesources.

  Principal Commercial Users

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environmentwithinwhichtheDistrict’sfinancialactivitiestakeplace.

  Demographic & Economic Statistics



 Principal Employers

Source: Unless otherwise noted, the information in theses schedules is derived from the annual comprehensive financial reports for the relevant year.

FiscalYear Ended June30 NetInvestedin CapitalAssetsRestrictedUnrestrictedTotalNetPosition

2014273,702,8246,238,64850,388,726330,330,198

2015290,329,7006,930,28647,164,270344,424,256

2016310,277,9656,087,64944,227,370360,592,984

2017324,826,1915,169,66748,827,214378,823,072 2018318,591,1326,045,51669,374,003394,010,651 2019337,729,29011,860,48164,530,210414,119,981 2020360,881,0716,747,58264,850,064432,478,717 2021399,621,9017,016,96467,107,474473,746,339 2022412,955,3637,288,27273,822,362494,065,997 2023435,348,0216,857,21477,297,995519,503,230

GeneralRevenuesbySource

Note:DoesnotincludeCapital Contributions. FiscalYear Ended June30

20141,758,81828,528,6224,430,475972,39735,690,312 20153,725,58428,892,3024,311,259984,09737,913,242 20163,344,07430,335,4866,324,596895,53540,899,691 20173,909,92531,611,2956,977,097744,89443,243,211 20184,159,76732,731,2335,357,0081,715,43143,963,439 20193,687,70333,705,9066,343,8422,125,73245,863,183 20203,426,10333,945,4595,737,6111,826,34744,935,520 20213,497,07035,094,8315,092,0602,123,37445,807,335 20223,816,10337,668,6375,966,0121,166,45148,617,203 20233,805,06439,617,0605,343,2613,888,14152,653,526

ExpensesbyFunction(Non-GAAP)

Fiscal Year Ended June30 Adjusted Operating Expenses(1) Capital Improvement(2)

201414,081,69712,701,8101,396,3856,464,58334,644,475 201514,468,18416,455,6533,078,5208,154,35042,156,707 201615,204,11719,201,5012,392,7818,722,49545,520,894 201715,767,82414,631,1553,478,3378,069,90241,947,218 201816,536,83022,528,7403,222,0317,841,62650,129,227 201916,315,76020,860,3634,354,0718,505,56050,035,754 202016,158,23923,629,7144,281,7228,558,10752,627,782 202116,441,11618,377,09327,495,5668,966,31271,280,087 202216,698,18514,984,6863,348,1099,070,33444,101,314 202318,451,22621,084,8276,399,9059,126,19755,062,155

1Includes general operations.

2Excludes depreciation expense.

3This includes collection system infrastructure contributed by developers and Cane Creek Water and Sewer District asset contribution from Henderson County.

4Includes Bond Principal Expense and Bond Interest Less Capitalized Interest Portion and excludes early retirement of long-term debt.

PrincipalCommercialUsers

JacobHolmIndustriesAmericaTextileManufacturer390,79220.90%

NewBelgiumBrewingMicro-BreweryManufacturer296,51930.68%

SierraNevadaMicro-BreweryManufacturer275,49040.63%

RidgecrestBaptistConferenceCenterChristianConferenceCenter177,69030.59%209,40250.48%

UniversityofNorthCarolina-AshevilleUniversity197,73160.46%

ArcadiaBeverageBeverageSupplierforlocal/globalretailers99,77170.33%193,64170.45%

MissionHealthSystemHealth&EmergencyServices268,37220.89%175,15180.40%

DukeEnergyProgressEnergyProvider173,56790.40%

TheBiltmoreCompanyTouristAttraction/Winery/ResortServices159,346100.37%

GivensEstates,Inc.ContinuingCareRetirementCommunity145,69940.48%

BonarChemicalManufacturer133,40650.44% -(formerlyColbond)

VAMedicalCenterVeteransHospital125,43360.41% -AshevilleDepartmentofVeteransAffairs

ContinentalAutomotiveSystemsAutomotivePartsManufacturer94,61080.31%

MissionHospitalLaundryLaundryServicesProvider92,80290.31% -formerlyCooperativeLaundryServices

BlackMountainCenterHealthCare91,734100.30%

Source: District Billing Records

Demographic&EconomicStatistics

FiscalYear EndedJune 30

CivilianLaborForce3

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:

1U.S. Census Bureau

2Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce; Last updated: November 16, 2022-- new statistics for 2020; revised statistics for 1998-2021.

3U.S. Department of Labor - Bureau of Labor Statistics; Local Area Unemployment Statistics PopulationPerCapitaMedianUnemployment Estimates1Income2Age1EmployedUnemployedRate 2014249,26540,79741.0122,4805,8984.6% 2015252,16042,99641.1125,3556,1314.7% 2016255,22244,40341.7129,3245,4124.0% 2017257,40846,32341.9130,4184,8013.6% 2018259,72648,81942.1133,7104,5013.3% 2019262,04950,80442.2135,7494,5543.2% 2020263,47753,30942.3116,65816,81712.6% 2021271,53457,89542.2129,6556,6484.9% 2022UnavailableUnavailableUnavailable136,8194,6823.3% 2023UnavailableUnavailableUnavailable141,0464,0252.8%

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 Appendix 

Classification of Accounts

51100-Salaries & Wages—This includes salaries & wages for 153 department personnel. Also includesaCostofLivingincreaseof3.7%.

51150-Overtime—Thisincludescompensationasnecessaryfornon-exemptpersonnel.

51200-NC Retirement—The District contributes 13.60% of gross salaries and wages to the North Carolina Local Government Employees' Retirement System. The employees contribute an additional 6.00%throughpayrolldeduction,buttheemployeeportionisnotbudgeted,asitisnotanexpenseof theDistrict.Theabovecontributionincludes0.05%deathbenefit.

51250-Payroll Taxes—TheDistrictcontributes6.20%ofgrosssalariesandwagestoSocialSecurity and 1.45% for Medicare as the employer share. The employees contribute equal amounts through payrolldeduction,butthisisnotincludedinthebudgetedamount.

51300-Medical,Dental& Life—Thisincludestheemployerallocationoftheself-fundedemployee medicalanddentalprogram.

51325-Post-Employment Insurance—The District implemented GASB Statement No. 45: AccountingandFinancialReportingbyEmployersforPostemploymentBenefitsOtherThanPensions. Includedarepostretirementbenefitsotherthanpension,forexample,medical,dental,andvision.

51350-Worker’s Compensation—This includes the allocation of worker's compensation premiumsanddeductiblecosts.

Classification of Accounts (continued)

51360-State Unemployment Benefits—Beginning FY14, the District was required to maintain a reserveequaling1%ofunemploymentinsurancetaxablewages.InAugustof2014,andeveryAugust subsequent, the Division of Employment Security (DES) calculates the amount that each employer shouldhavein its reserve.Unemployment claimswillbedeductedfromthereservein thefallof that year.EmployerswillthenreceiveabillfromtheDESindicatingtheamounttheymustpaytoreplenish their reserve to the 1% level. This payment will cover both the costs of unemployment claims and increasesintheemployer’stotalnumberofemployeesortotaltaxablewages.

51500-401(k)—TheDistrictcontributesupto5.0%ofmatchingcontributionsbaseduponthelevelof employee participation in the 401(k)-retirement plan. A professional investment institution administersthisascontractedwiththeNorthCarolinaRetirementSystem.

52010-Advertising—This includes newspaper ads for vacant positions, quarterly informational reports,andmandatorypublicSSOnotices.Inaddition,theadvertisingaccountcoversAnnualReport and System Performance Annual Report distribution, door hangers and any other miscellaneous communicationsfromtheDistricttothepublic.

52050-Dues & Subscriptions—This includes memberships to professional organizations and subscriptionstowaterutilityperiodicals,localnewspapers,etc.

52100-Postage—Thisincludesthechargesformailingofallofficialcorrespondence.

52150-Travel, Meetings & Training—This includes attendance at regional, state, and national professional associations and various continuing education requirements including supervisory training,skill-basedpaytraining,operator’sseminar,etc.

Classification of Accounts (continued)

52160-Tuition Assistance—This includes pre-authorized monetary assistance to employees who takeeducationalcoursesthatdirectlyrelatetotheirpositionsattheDistrict.

52170-Director’s Fees & Expenses—This includes all costs pertaining to the Board of Directors suchasstipends,meetingexpenses,andtraveltonationalwaterandwastewaterconferences.

52180-Insurance—Thisrepresentsallocationofgeneralliabilityinsurancepremiumanddeductible costs.

52210-Communications (other than landline telephone)—This includes charges for cellular telephones,mobileradios,andpagers.

52240-Uniforms—This includes charges for the purchase of work shirts, pants, outerwear, safety bootsandotherrelateditems,aswellastherentalandcleaningofcertainuniforms.

52250-Office Supplies—This includes paper, printing charges, and other miscellaneous officerelatedsupplies.

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, andvellum.

52270-SafetyEquipment/Supplies—Thisincludesgoggles,vests,trench-shoringequipment,gas monitors,andrelateditemstopreventwork-relatedinjuries.

52280-Supplies/Small Tools—This includes chainsaw blades, drill bits, gloves, miscellaneous handtools,axes,shovels,batteries,sewertape,paint,andpaintbrushes,etc.

Classification of Accounts

(continued)

52290-Chemicals—Thisincludesallchemicalsusedinthetreatmentofwastewater.

52300-Line Cleaning & Supplies—This includes chemicals, rat bait, nozzles, hose, root cutters & replacementrods,rootkiller,degreaser,etc.

52330-Legal Fees—ThisincludesprofessionalservicesoftheDistrict’sattorneyforvariousmatters notrelatedtocapitalprojects.

52340-Debt Administration Fees—This includes trustee fees, liquidity facility fees for variable debt,arbitragecalculationfees,andincidentalexpendituresincurredbytheBondTrustee.

52350-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 annualsupportfees,andotheroutsourcedservices.

52400-Repairs (OfficeEquipment)—Thisincludeschargesforrepairsofvariousofficeequipmentnot underamaintenanceagreement.

52410-Maintenance (Bldgs.&Grounds)—Thisincludesjanitorialfees,outsourcedrepairs,mowing services,landscapingsupplies,andelevatorinspections.

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 variousothermaintenanceofnon-vehicularequipment.

Classification of Accounts (continued)

52430-Landscape Restoration—Thisincludesmanholes,rims&lids,blacktoppatchandconcrete materials,asphalt&concretework,pipe,couplings,adapters,straw,grassseed,mulch,pineneedles andplantsrequiredtorecoverexcavatedareas,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 andbulldozers.

52460-Motor Fuel and Lubricants—Thisincludesgasoline,dieselfuel,motoroil,brakefluid,and similarsuppliestooperateandmaintaintheDistrictfleetoftrucks,vans,andheavyequipment.

52470-Outside Vehicle Maintenance—This includes expenditures paid to factory-authorized dealer service departments or similar enterprises to perform needed repairs to vehicles beyond the capabilitiesoftheDistrict’sin-housefleetmaintenanceemployees.

52500-Rents & Leases—This includes the rental of any equipment for the treatment plant, and operatingleasesforcopiersandotherofficeequipment.

52510-Permits, Fees, & Software Licenses—Thisincludeschargesforannualradiation 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 waterusagebypreventativemaintenancetrucks.

52650-Utilities—Thisincludeschargesforelectricity,gas,water,andtrashcollection.

Classification of Accounts (continued)

52690-Freight—Thisincludes freightchargesONLY foritems that arenotclearly andeasily defined aspertainingtoacertaindivisionand/orlineitem(s).

52715-Safety Incentive Program—Rewards to employees for compliance with safety rules and proceduresaredistributedbytheSafetyOfficerbaseduponobservationsduringroutineandsurprise inspections.

52725-Wellness Program—OneofthewaystheDistrict attemptsto managecostsforself-funded healthinsuranceplanistoencourageemployeestoachieveandmaintainhealthylifestyles.Wellness programcostsincludeeducation,fitnessequipment,andauxiliarysupplies.

52730-Employee Assistance Program—The District contracts with an agency to provide resourcesfordealingwithemployeeperformance issuestoassistmanagement.

52910-Non-Capital Equipment—This includes any item under $1,000 consisting of various tools andassortedinformationtechnologycomponentssuchascomputersormonitors.

52915-Copiers,PrintersandFaxes—Thisincludesroutinesuppliesandpurchaseofanymachines under$1,000.

52920-Billing & Collections—This represents the billing and collection of sewer charges by the memberagencies.

53040-Fleet Equipment Replacement Fund—Thisincludestheproposedannualfundingforthe future acquisition of vehicles, trucks, and trailers. Current acquisition of replacement vehicles is budgetedinthereplacementfunditself.

Classification of Accounts

(continued)

54010-Capital Equipment (New)—Thisincludesrequestsfornewequipmentover$1,000ormore andhavingausefullifeofthreeyearsorlonger.

54020-Capital Equipment (Software)—This includes license and other nonrecurring software chargesofatleast$1,000andhavingausefullifeofthreeyearsorlonger.

54030-Capital Equipment (Replacement)—This includes requests for replacement equipment over$1,000ormoreandhavingausefullifeofthreeyearsorlonger.

59200-Chargebacks toConstruction Fund—Directlaborandmaterialscostsincurredtoacquire right-of-ways, design, plan, and monitor construction projects budgeted in the Systems Services and Engineering Services departments are transferred to the capital projects fund to be included in the capitalizedcostofself-constructedassets.

Classification

Classification

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

24

25

26

29

EngineeringSupportTechnician

EngineeringTechnicianII

FleetMechanicIII

WWTPLeadOperator

ConstructionInspectorIII

ElectricalMaintenanceCrewLeader

EngineeringTechnicianIII

GISSpecialist

IndustrialInfrastructureInspector

ITTechnicianII

MechanicalMaintenanceCrewLeader

Payroll/BenefitsManager

PointRepair/DigUpManager

PumpStationMaintenanceCrewLeader

PurchasingSupervisor

SSDAdministrator

SSMaintenanceSupervisor

SSRehab/SewerTapManager

GISAnalyst

HRProgramsManager

IndustrialPretreatmentCoordinator

InspectionsManager

RightofWayAgent

PLCTechnician

Job Classification by Grade Order (effective July 1, 2024) (continued)

Staffing History (FTE’s)

Management

Staffing History (FTE’s) (continued)

Staffing History (FTE’s) (continued)

Staffing History (FTE’s) (continued)

Staffing History (FTE’s) (continued)

Staffing History (FTE’s) (continued)

Staffing History (FTE’s) (continued)

DepartmentofSystemServices–

Maintenance (continued)

Budget Resolution

Budget Resolution (continued)

Budget Resolution (continued)

Budget Resolution (continued)

Schedule of Rates, Fees, and Charges – FY2025

Effective July 1, 2024

Schedule of Rates, Fees, and Charges – FY2025

(continued)

Effective July 1, 2024

Schedule of Rates, Fees, and Charges – FY2025

(continued)

Effective July 1, 2024

 Glossary 

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 often with business-type governmentalfunds.

Actuary—Aprofessionaltrainedin mathematics,statistics andeconomictechniquesthatallow them toputafinancialvalueonfutureevents.TheDistrictretainsaconsultingactuarialfirmtoperformthe regularannualactuarialvaluationsofthepost-retirementplan.

Actuarial Report—A report performed annually by the actuary to examine whether the contributions madetoapost-retirementplanisadequate.

Adopted Budget—The budget approved by District Board of Directors and enacted via a budget resolution,onorbeforeJune15ofeachyear.

AMSA (American Metropolitan Sewerage Association)—Nationwide organization established to help improveoperations.

AnnualBudget—TheDistrict'sadoptedbudgetforafiscalyear.

BasisofAccounting—Thecriteriagoverningthetimingoftherecognitionoffinancialtransactionsand events.Therearethreemajormethodsofaccounting—cash,accrual,andmodifiedaccrual.

Billing Fee—Charge assessed by member agencies that collect sewer user fees from ratepayers to recovertheadministrativecostofcollection.

BOD (Biochemical Oxygen Demand)—A measure of the amount of oxygen used up in the anaerobic decomposition of organic matter. The BOD test uses the oxygen from air dissolved in water and reflects treatability or stage of decomposition. It gives a direct measurement of the strength of wastewater,usuallyexpressedinmg/l(milligramsperliter).

Glossary of Terms

(continued)

Bond—Awrittenpromisetopayaspecificsumofmoney(theprincipal)atadateordatesinthefuture (thematurity)togetherwithperiodicinterestataspecifiedrate.

BondRating—Ratingforbondstobeissuedthatprimarilyreflectstheabilityoftheissuertorepaythe bonds. Better bond ratings result in lower interest rates for the bonds issued. Current bond rates for theDistrictareAaabyMoody’s,AA+byStandard&Poor’s,andAAAbyFitchRatings.

Budget—Aplanoffinancialoperationcomprisedofanestimateofproposedexpendituresforafiscal yearandtheproposedmeansoffinancingthoseexpenditures(revenueestimates).

Budget Calendar—The schedule of key dates or milestones, which the District follows in the preparationandadoptionofthebudget.

BudgetDocument—TheofficialwrittenstatementpreparedbytheDistrict'sDirectorofFinance,which presentstheproposedbudgettotheDistrictBoardofDirectors.

Budget Resolution—The official statement by the District Board of Directors establishing the legal authorityfortheDistrictBudgetadministrativestafftoobligateandexpendfunds.

Budget Transmittal—A general discussion of the proposed budget presented to the Board by the GeneralManagerandthe DirectorofFinance asa partofthebudgetdocument. Thebudgetmessage explains principal budget issues against the background of financial experience in recent years and presentsrecommendationsmadebytheGeneralManager.

Glossary of Terms

(continued)

Capital Budget—The capital budget is responsible for all infrastructure projects in excess of the $15,000infrastructurecapitalizationthreshold.Projectsincludereplacingandrehabbing structurally defective sewer lines, handling wet-weather flow conditions, improving the performance at the wastewatertreatmentplant,andpreparingthesystemtohandleexpectedfuturewastewaterflows over the upcoming decade. A capital budget appropriation is limited to the cost of a project and may bespentoveralongperioduntiltheprojectiscompleted.

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 usablefor thepurposes for which it is acquired. Ancillarycharges such as taxes,duty, and protective intransitinsurance,freight,andinstallationarealsoincludedinthetotalpurchaseprice.

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 constructionor rehabilitation ofinfrastructure such asmajor interceptorsand pumpstations aswell asmajorrenovationsandadditionstothehydroelectricandwastewatertreatmentplantfacilities.

CapitalReserveFund—TheMetropolitanSewerageDistrictofBuncombeCountyCapitalReserveFund, a special fund created by the provisions the District’s Bond Order established to provide funding for unusualandextraordinaryexpendituresanddebtserviceintheeventofinsufficientrevenues.

Cash Basis of Accounting—Under cash basis, all transactions is recognized when cash is received or spent.Thismethodisnotacceptableforusebygovernmentalentities.

Glossary of Terms

(continued)

Collector Sewers—That portion of the collection and transportation system, which gathers wastewater from individual buildings and transports it through a network of sanitary sewers to interceptorsewers.

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 requiredforcurrentoperationsanddebtpayments.

Current Expenses—The Districts'reasonable and necessary annual expensesof maintenance,repair, andoperationoftheSewerageSystem.

DebtService—Paymentofinterestandrepaymentofprincipalonbondedindebtedness.

Department—Amanagementunit.

District—TheMetropolitanSewerageDistrictofBuncombeCounty,NorthCarolina,apublicbody,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 andwelfare.

District Board—The sewerage district board established under the provisions of the Enabling Act as thegoverningbodyoftheDistrict.

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 residencesandsmallbusinesses.

Glossary of Terms

(continued)

EnablingAct—TheNorthCarolinaMetropolitanSewerageDistrictsAct(Article5,Chapter162A,General Statutes of North Carolina, 1982 Replacement Volume, as amended) and, pursuant to the provisions thereof,TheStateandLocalGovernmentRevenueBondAct(Article5,Chapter159,GeneralStatutesof NorthCarolina,1982Replacement).

Encumbrance—Commitmentofmoneytomeetanobligationthatisexpectedtobeincurredtopayfor goodsorservicesreceivedbytheDistrict.

Enterprise Fund—A type of proprietary fund set up to account for the financing of services to the generalpublicwhereallormostoftheoperatingexpensesinvolvedarerecoveredintheformofuser charges.

Environmental ProtectionAgency (EPA)—The federal agency responsible for regulating water quality andtheFederalCleanWaterAct.

Expansion—Expenditurestoenlargecapacityoffacilitiesorextendsystemtonewareas.

Expenditures—Thecostof goodsreceivedorservicesrenderedwhetherpayment forsuchgoodsand serviceshasbeenmadeornot.

Federal Energy Regulatory Commission (FERC)—An independent government agency, officially organized as part of the Department of Energy, and is responsible for regulating the interstate transmissionofnaturalgas,oil,andelectricity.

Fiscal Year—The calendar on which the District operates for financial and budget purposes. The District’sfiscalyearbeginsonJuly1andendsonJune30.Thecurrentfiscalyear,2024,beginsonJuly 1,2023,andwillcontinueuntilJune30,2024.

Flow—Volumeofdomesticorindustrialwastewater.

Glossary of Terms

(continued)

Full-Time Equivalent (FTE)—A method of calculating employment and enrollment to adjust for parttimeorpart-yearparticipation.OneFTEisequivalenttoonefull-timeemployeewhoworks40perweek for52weeks,foratotalof2,080workhours.

Fund—A fiscal entity with a self-balancing set of accounts used to account for an activity(s) with commonobjectives.

Fund Equity—The excess of revenues over expenditures accumulated from prior years within a fund thatarepresentintheformofcashatthebeginningofthefiscalyear.

GAAP (Generally Accepted Accounting Principles)—These are standards for measuring and reporting financialdatapromulgatedbyanauthoritativebody.

GIS (Geographical Information System)—An organized collection of computer hardware, software, geographic data, and personnel designed to efficiently capture, store, update, manipulate, analyze, anddisplayallformsofgeographicallyreferencedinformation.

Goal—Theunderlyingreason(s)fortheprovisionofessentialDistrictservices.

Improvements—Bettermentsorupgradestoincreasevalue,quality,orusefulness.

Industrial User—Any user of the Sewerage System who discharges industrial waste (the liquid and waterbornepollutantsresultingfromprocessesoroperationsemployedinindustrialestablishments).

Chargesbasedonflow,BODandTSS.

I/I (Inflow/Infiltration)—Water entering the collection system from rain, water table, streams, and othernon-usersources,unnecessarilydrivingupcostoftreatmentandlikelihoodofSSOs.

Influent—Thewastewaterenteringthereclamationfacility.

Glossary of Terms

(continued)

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 byin-housestaff,atalowercostthanhiringcontractors.

Interceptor—A sewer that carries sanitary waste that is built by the District. These are large sewers thatcollectwastewaterfromlocaltrunksewersandconveyittothewaterreclamationfacility.

Laterals—Privately owned building sewer lines and smaller collection system lines (4-6 inch in diameter)whichconnecttolargerpublicmainsewerlines.

LiftStation—Afacilityinasewersystemconsistingofareceivingchamber,pumpingequipment, and associateddriveandcontroldeviceswhichcollectandliftwastewatertoahigherelevationwhenthe continuanceoftheseweratreasonableslopeswouldinvolveexcessivetrenchdepths;orthatcollects and raises wastewater through the use of force mains from areas too low to drain into available sewers.

Line-item Budget—A budget detailing categories of expenditure for goods and services that the Districtintendstopurchaseduringthefiscalyear.

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 CarolinaGeneralStatutes.

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 governmentand public authorities, monitoring the repayment oftheirdebt, and overseeingthe fiscalactivitiesandfinancialsoundnessofalllocalgovernmentsandpublicauthorities.

Glossary of Terms

(continued)

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 recognizedasexpenditureswhenpaymentisduebecauseitisonlyatthattimethattheynormallyare liquidatedwithexpendableavailablefinancialresources.

NetAssets—Thedifferenceoftotalassetsandtotalliabilitiesforanyperiod.

Net Position—The difference between assets and deferred outflows of resources, and liabilities and deferredinflowsofresources.

NetRevenues—Theexcessofrevenuesovercurrentexpensesforanyperiod.

NPDES (National Pollutant Discharge Elimination System)—Permit to operate wastewater treatment issuedbytheEPA.

Objective—Ameasurablestatementoftheactualservice(s),whichtheDistrictexpectstoachieve.

Operations and Maintenance (O&M) Budget—The annual budget for activities related to controlling, operating, managing, and maintaining the sewerage system. Operating costs include such expenses as personal services(salaries and benefits forclassified employeesand hourly workers), contractual services,andsupplies.

Order—TheAmendedandRestated1999BondOrder.Torequestacopy,contacttheDirectorofFinance attheaddressonthecoverofthisdocument.

OSHA (Occupational Safety and Health Administration)—Federal agency responsible for issuing and monitoringstandardstominimizeworkplacedeaths,injuries,andillnesses.

Glossary of Terms

(continued)

PLC (Programmable Logic Controller)—Instrumentation hardware used for automated control of equipment. PreliminaryBudget—BudgetthatBoardapprovespriortoadoptionofFinalBudget.

Pretreatment—Any process used by local industries to reduce pollution load before wastewater is introducedintoamainsewersystemordeliveredtoareclamationfacility.

Proprietary Fund—A type of fund that accounts for governmental operations that are financed and operated in a manner similar to private businessenterprises.It isfinanced primarily fromcharges to usersofservicesprovided.

PumpingStation—A relatively largesewage pumping installation designednot only to lift sewage to a higher elevation but also to convey it through force mains to gravity flow points located relatively longdistancesfromthepumpingstation.

Recommended Budget—The budget proposed by the General Manager and Director of Finance to DistrictBoardforadoption.

Rehabilitation—Expenditures for repair due to damage, wear, or decay to restore facilities to normal oroptimumcondition.

Replacements—Expendituresforcomponentsreplacingexistingunits.

Glossary of Terms

(continued)

Revenue(forpurposesofBondOrdercoverage)—Allpayments,proceeds,fees,charges,andallother incomederivedbyorfortheaccountoftheDistrictfromitsownershipandoperationoftheSewerage System, excluding all acreage, connection, front-footage, tap-on, assessment and similar fees and charges and grants derivedby 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 leviedbytheDistrict.

RotatingBiologicalContactor(RBC)—Largerotatingplateshousingbacteria,whichconsumedissolved solidsinwastewater.

Satellite System—Any sewer system maintained by another entity without a state-issued discharge permit, but which is connected to an 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 onereportablesatellitesystem.

Sewage—Sewage refers to the wastewater flow from residential, commercial, and industrial establishments,whichflowsthroughthepipestoareclamationfacility.

Sewerage—Sewerage refers to the system of sewers and physical facilities employed to transport, treat,anddischargesewage.

SCADA (Supervisory control and data acquisition)—A computer system for gathering and analyzing realtimedata.SCADAsystemsareusedtomonitorandcontrolaplantorequipmentinindustriessuch astelecommunications,waterandwastecontrol,energy,oilandgasrefiningandtransportation.

Sludge—The accumulatedsettledsolids depositedfromsewageorindustrialwastes,rawortreated, intanksandbasins,andcontainingmoreorlesswaterformingasemi‐liquidmass.

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

Glossary of Terms (continued)

SS(SuspendedSolids)—Solidmatterthateitherfloatsonthesurfaceoforissuspendedinwastewater andwhichisremovablebylaboratoryfiltration.

SSO(SanitarySystemOverflow)—Untreatedwastewaterescapesfromthecollectionsystem.

User Charge—Fees levied upon residential, commercial, and industrial users of a wastewater treatmentsystembaseduponthevolumeandcharacteristicsofthewaste.

WaterReclamationFacility(WRF)—WastewaterTreatmentPlantoftheDistrict.

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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