City of Marco Island, Florida

City of Marco Island, Florida

Revenue Sufficiency Analysis Assumptions & Results Workbook

Burton & Associates

5/4/2012

City of Marco Island - FY 2012 RSA

Prepared by Burton & Associates - 5/4/2012

Assumptions

Schedule 1

Capital Spending: Annual Capital Budget (Future Year Dollars) Annual Percent Executed

Plant Capacity Charges: Marco Island Service Area Water Marco Island Service Area Sewer

Wholesale Expense Rate Assumptions Water*

Average Annual Interest Earnings Rate: Water & Sewer Enterprise Fund:

Effective Date of Assumed Rate Increases Water, Sewer, and Reclaimed Water Rates

Operating/Revenue Fund (400) Reserve Target: Number of Months of O&M Expenses

Operating Budget Execution Percentage: Personal Services Operations and Maintenance Expenses

Debt Service Coverage & Future Borrowing Assumptions Rate Covenant Test 1 (Net Revenues) - Req. Rate Covenant Test 1 (Net Revenues) - Target Rate Covenant Test 2 (Net Rev. & Capacity Chg) - Req. Rate Covenant Test 2 (Net Rev. & Capacity Chg) - Target State Revolving Fund Loan Coverage - Req. State Revolving Fund Loan Coverage - Target

Bond Term Interest Cost of Issuance Underwriter's Discount Bond Insurance Capitalized Interest Debt Service Reserve Surety Debt Service Reserve Bundle Bonds for

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

$3,739,500 $9,593,250 $3,125,000 $13,280,000 $4,520,000 $6,851,550 $7,473,960 $7,050,102 $7,835,122 $6,746,147 $7,191,376

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3,740 $4,610

$3.54

$3.64

$3.79

$3.94

$4.10

$4.26

$4.43

$4.61

$4.79

$4.98

$5.18

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

4/1/2012 1/1/2013 10/1/2013 10/1/2014 10/1/2015 10/1/2016 10/1/2017 10/1/2018 10/1/2019 10/1/2020 10/1/2021

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

100% 90%

1.10 1.50 1.05/1.20 1.50 1.15 1.50

30 6.00% 2.50% $0.00 0.0 0.0 0.00% 1.0 2.0

years rate of par per $1,000 times total debt service years interest of debt service years of debt service year

* Projected rate for water purchases from Collier County for Marco Shores service area Burton & Associates

5/4/2012

Financial Management Plan

City of Marco Island - FY 2012 RSA

Prepared by Burton & Associates - 5/4/2012

Cost Escalation Factors

Operating Expense Category

ADMINISTRATIVE CHARGES-GE AUDITING SERVICES BAD DEBT EXPENSE BANK FEES BENEFITS BOND CLOSING COST BOND CLOSING COSTS BUILDING REPAIR & MAINT BUILDING REPAIRS & MAINTENANCE CAPITALIZABLE PERSONNEL CAPITALIZABLE PERSONNEL COSTS CHEMICALS CHEMICALS-LIME PLANT CHEMICALS-RAW WATER COLLECTION EXPENSE CONT TO LIABILITY INSURANCE FUND CONTRACTUAL SERVICES CONTRACTUAL SERVICES-SLUD CONTRACTUAL SERVICES-SLUGE HAULING ELECTRICITY ELECTRICITY-LIME PLANT ELECTRICITY-RAW WATER EMERGENCY REPAIRS EQUIP REPAIR & MAINT EQUIPMENT PURCHASES EQUIPMENT REPAIR & MAINTENANCE EQUIPMENT REPAIR & MAINTENANCES FDEP LICENSE OPERATING FEES FICA FICA TAXES FUEL HAZARDOUS WASTE DISPOSAL I.T. SUPPLIES/SERVICES INSURANCE JANITORIAL SUPPLIES LONGEVITY PAY MECHANICAL INTEGRITY TESTING MISC CHARGES MISCELLANEOUS EXPENSE OFFICE SUPPLIES OPEB EXPENSE OPERATING SUPPLIES OTHER CONTRACTUAL SERVICES OTHER OPERATING EXPENSES OTHER REPAIR & MAINTENANCE OVERTIME POSTAGE PRINTING PROFESSIONAL SERVICES PUBLICATIONS & MEMBERSHIP PUBLICATIONS & MEMBERSHIPS R & R REPAIRS RENEWAL & REPLACEMENT RENTALS & LEASES RENTALS AND LEASES REPAIR SUPPLIES RETIREMENT ROAD REPAIRS SAFETY SLUDGE HAULING SMALL TOOLS SPECIAL TOOLS TELEPHONE & COMMUNICATION TELEPHONE & COMMUNICATIONS TRAINING TRASH / DUMPSTER SERVICES TRAVEL & PER DIEM TRAVEL PER DIEM UNEMPLOYMENT COMPENSATION UNIFORMS UNPAID COMPENSATED ABSENCES VEHICLE REPAIR & MAINT VEHICLE REPAIRS & MAINTENANCE VEHICLES REPAIRS & MAINTENANCE WAGES

Burton & Associates

Schedule 2

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

4.00% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 3.00% 3.00% 3.50% 3.50% 7.00% 7.00% 7.00% 2.50% 3.00% 4.00% 5.00% 5.00% 6.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 10.00% 4.00% 3.00% 4.00% 2.50% 3.50% 2.50% 2.50% 2.50% 2.50% 5.00% 3.50% 4.00% 4.00% 4.00% 3.50% 3.00% 2.50% 4.00% 2.50% 2.50% 3.50% 3.50% 2.50% 2.50% 2.50% 3.50% 5.00% 2.50% 5.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 3.50% 3.00% 3.00% 3.00% 3.50%

Financial Management Plan

City of Marco Island - FY 2012 RSA

Prepared by Burton & Associates - 5/4/2012

Customer History

Fiscal Year Ending: Water

Source: Series 2010 OS (FY 04 - FY 09) and City Billing Data (FY 10 & FY 11)

2004

2005

2006

2007

2008

2009

2010

2011

Total Accts Growth % Change

9,198

9,265 67

0.73%

9,491 226

2.44%

9,514 23

0.24%

9,563 49

0.52%

9,611 48

0.50%

9,631 20

0.21%

9,689 58

0.60%

Usage (Annual 1,000 Gals)

Billed Use

2,836,669

Mo. Usage per Acct

25.70

% Change

2,740,545 24.65

-3.39%

2,769,264 24.31 1.05%

2,578,953 22.59

-6.87%

2,316,828 20.19

-10.16%

2,409,056 20.89 3.98%

2,275,171 19.69

-5.56%

2,317,893 19.94 1.88%

Wastewater

Avg. Annual Accts Growth % Change

4,562

Usage (Annual 1,000 Gals)

Billed Use

627,419

Mo. Usage per Acct

11.46

% Change

4,697 135

2.96%

613,087 10.88

-2.28%

4,750 53

1.13%

654,922 11.49 6.82%

5,006 256

5.39%

645,568 10.75

-1.43%

5,332 326

6.51%

669,497 10.46 3.71%

6,262 930

17.44%

703,697 9.36

5.11%

6,887 625

9.98%

728,100 8.81

3.47%

7,967 1,080 15.68%

786,368 8.23

8.00%

Schedule 3 Trend Line

Note: Table includes data for water, sewer, irrigation, bulk, and fire protection services. Excludes reclaimed water service. Burton & Associates

5/4/2012

Financial Management Plan

City of Marco Island - FY 2012 RSA

Prepared by Burton & Associates - 5/4/2012

Customer and Demand Growth

Schedule 4

Annual Growth: Water: Average Number of Accounts Growth Percent Increase

Average Monthly Usage per Account Change in Average Usage per Account*

Annual Billed Consumption (1,000 Gals) Percent Increase

Sewer: Average Number of Accounts Growth** Percent Increase

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

9,689 N/A N/A

9,714 25

0.26%

9,739 25

0.26%

17.99 -9.75% 2,091,964

N/A

17.99 0.00% 2,097,362 0.26%

17.99 0.00% 2,102,760 0.26%

9,774 35

0.36%

17.99 0.00% 2,110,316 0.36%

9,824 50

0.51%

9,874 50

0.51%

9,924 50

0.51%

9,974 50

0.50%

10,024 50

0.50%

10,074 50

0.50%

10,124 50

0.50%

17.99 0.00% 2,121,112 0.51%

17.99 0.00% 2,131,908 0.51%

17.99 0.00% 2,142,703 0.51%

17.99 0.00% 2,153,499 0.50%

17.99 0.00% 2,164,294 0.50%

17.99 0.00% 2,175,090 0.50%

17.99 0.00% 2,185,885 0.50%

7,967 N/A N/A

8,214 247 3.10%

8,560 346 4.22%

8,893 333 3.89%

8,943 50

0.56%

8,993 50

0.56%

9,043 50

0.56%

9,093 50

0.55%

9,143 50

0.55%

9,193 50

0.55%

9,243 50

0.54%

Average Monthly Usage per Account Change in Average Usage per Account*

Annual Billed Consumption (1,000 Gals) Percent Increase

Reclaimed: Average Number of Accounts Growth Percent Increase

Average Monthly Usage per Account Change in Average Usage per Account*

Annual Billed Consumption (1,000 Gals) Percent Increase

7.98 -3.00% 762,794

N/A

7.98 0.00% 786,443 3.10%

7.98 0.00% 819,594 4.22%

7.98 0.00% 851,453 3.89%

7.98 0.00% 856,240 0.56%

7.98 0.00% 861,028 0.56%

7.98 0.00% 865,815 0.56%

7.98 0.00% 870,602 0.55%

7.98 0.00% 875,389 0.55%

7.98 0.00% 880,176 0.55%

7.98 0.00% 884,964 0.54%

154 N/A N/A

323.02 -2.43% 596,937

N/A

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

154 0

0.00%

323.02 0.00% 596,937 0.00%

*FY 2012 calibrated to reflect elasticity and demand associated with rates of M54 analysis **Includes remaining schedule for STRP completion of Goldenrod (253) & Copperfield (191) properties split equally over FY 13 & FY 14 and Estates (397) properties split 25% in FY 14, 75% in FY 15. Burton & Associates

5/4/2012

Financial Management Plan

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