TOHO WATER AUTHORITY OPERATING

BUDGETFISCAL YEAR 2021 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

(This page intentionally left blank) TOHO WATER AUTHORITY TABLE OF CONTENTS

Overview ...... 1‐8

Water & Wastewater System ...... 9‐14

Planning Summary ...... 15‐20

Budget Summary ...... 21‐30

Personnel Summary ...... 31‐38

Chart of Accounts ...... 39‐44

Debt Summary ...... 45‐48

System Development Funds ...... 49‐56

Summary Schedules ...... 57‐74 Schedule 1 Professional Services ...... 59 Schedule 2 Other Contract Services ...... 61 Schedule 3 Software Maintenance & Licenses ...... 63 Schedule 4 General Insurance ...... 65 Schedule 5 Capital Outlay ...... 66

Statistical Information ...... 75‐88 Schedule 1 ‐ Balance Sheet ‐ Assets Last Five Years ...... 77 Schedule 1 ‐ Balance Sheet ‐ Liabilities Last Five Years ...... 78 Schedule 2 ‐ Revenues & Expenses Last Five Years ...... 79 Schedule 3 ‐ Major Contract Services ...... 80 Schedule 4 ‐ Employees Last Five Years ...... 81 Schedule 5 ‐ Customer Usage Last Five Years ...... 82 Schedule 6 ‐ Usage Rate Comparison ...... 83 Schedule 7 ‐ System Development Charge Comparison ...... 84 Schedule 8 ‐ Top Ten Water Customers ...... 85 Schedule 9 ‐ Top Ten Wastewater Customers ...... 86 Schedule 10 – Authority Debt per Account ...... 87

Osceola County Data ...... 89‐102 Osceola County History & Geography ...... 91 Osceola County Climate, Economic, & Government Information ...... 92 Osceola County Statistics ...... 99 Osceola County Map ...... 102

Glossary ...... 103‐110 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

(This page intentionally left blank) Serving Osceola

Established in October 2003 by a special act of the Florida legislature, Toho Water Authority (TWA) is the largest provider of water, wastewater & reclaimed water services in Osceola County. Toho currently serves approximately 111,900 water, 17,200 irrigation, 105,600 wastewater and 20,100 reclaimed water customers in Kissimmee, Poinciana and unincorporated areas of Osceola County.

Toho owns and operates thirteen water plants and eight water reclamation facilities. With a workforce of over 330 employees, Toho treats and distributes approximately 40.3 million gallons of potable water a day and reclaims 25.8 million gallons of wastewater every day.

Toho is governed by a five-member board of supervisors responsible for approving all its policies and its’ $139 million operating budget. Toho was established for the sole purpose of providing regional stewardship over water resources in Osceola County.

I Mission, Vision and Values

OUR MISSION: Provide reliable, cost effective and responsive water services to our customers while protecting public health and the environment.

OUR VISION: Toho Water Authority: The standard of excellence for responsible water supply stewardship.

OUR VALUES: Work as a team utilizing the diverse strengths of our community to achieve a common goal.

Act with integrity, accept responsibility for performance and be worthy of trust.

Treat everyone as a customer, always giving your best.

Excellence through innovation and continuous improvement.

Respect everyone because our employees are our most valuable assets.

II Board of Supervisors

Hector Lizasuain is the Director of Government Affairs & Planning for Magic Development LLC, providing critical strategy, leadership, and execution working with local government and community organizations promoting and advancing Magic Development’s multiple projects. Hector came to Magic Development with close to 20 years government and community leadership experience.

HECTOR LIZASUAIN Chair

Domingo Sanchez has deeply woven his passions into the fabric of the Central Florida community as a successful entrepreneur in government affairs, land management, consulting, development, and a brokerage business. After quickly learning the ropes through the mentorship of many successful business leaders, Domingo went on to build three thriving and respected real estate businesses, Birdsong Housing Partners, NPSG Electric and Titan Management which is one of the fastest growing management companies in Central Florida with over one hundred real estate properties under management in just 5 years. He has a proven aptitude to successfully analyze current government affairs, real estate market trends and values, as well as identify deficiencies and potential opportunities. While meeting with government officials, government staff, department heads, and clients, Domingo has been the critical link to many successful transactions. DOMINGO SANCHEZ Vice-Chair

Bill Land comes from a 38-year career with General Electric and Cognis Chemical where, as a member of the executive management team he was responsible for finance, accounting and information technology. During his career he led and participated in restructurings, mergers and acquisitions, joint ventures, six sigma and SAP implementation projects. His experience includes business consolidations, cost reduction programs, planning and budgeting, and organizational development.

WILLIAM “BILL” L AND Secretary

III Board of Supervisors CONTINUED

Jim Swan is a former elected official having served three terms as an Osceola County Commissioner for a total of 12 years and two terms as Kissimmee’s Mayor for a total of 10 years. In between elected offices, he spent a decade in the private sector working for engineering and solid waste firms. His interest in fishing and in protecting water resources, especially Lake Toho, prompted him and his wife Linda to move to Kissimmee in 1972 from their native Illinois. It is his passion for keeping lakes clean that drove Jim’s long political career. ​

JIM SWAN Board Supervisor

Henry Thacker is a lifelong resident of Osceola County whose family goes back generations in this community. He graduated from the University of Florida with a BS in Construction Management in 2014 and is currently a Commercial Construction Project Manager with Balfour Beatty. He has served on several boards in Osceola County, including City of Kissimmee – Board of Advisory, Osceola County – Library Advisory, Kissimmee/Osceola Young Professionals, Osceola Arts, Silver Spurs, and ACE Mentoring. ​​

HENRY THACKER Board Supervisor

IV Meet Our Executive Director

Todd Swingle became the Executive Director of Toho Water Authority in September 2018. He has more than 25 years of experience serving in various environmental and utility roles. Some of his experience includes serving as the Deputy Director of Utilities for Orange County Government, Director of Environmental Strategy with global manufacturing company Cummins Incorporated and Director of Environmental Utilities and Public Services Administrator for the City of St. Cloud.

Todd holds Bachelor’s and Master’s Degrees in Environmental Engineering TODD SWINGLE from the University of Central Florida and an M.B.A. from the University of Executive Director Florida. He is also a registered Professional Engineer.

V Community Partners

FLORIDA Soldier City 1911

East Central Florida Services

VI Overview

10.01.20 1 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 2

The Authority’s financial plan is a key element of its overall strategic focus. The financial plan supports the strategic direction of the Authority; it helps to ensure that the organization is financially sound and that the strategic plan is being appropriately implemented. The strategic planning process establishes the Authority’s long-term goals and identifies the best approach for achieving those goals in alignment with the Authority’s vision, mission and values. This necessary guide requires a high level of preparation and interaction from both within and outside of the organization to make decisions for allocating the Authority’s resources. Sound approaches to financial planning are imperative for ensuring long-term success in today’s complex funding environment. It also acts as a type of “scorecard” on how the organization is performing and, if necessary, make corrective modifications to ensure its long-term viability.

Strategic Focus Areas

Recognized by our customers and stakeholders for excellent Customer & Community customer experience

Maximize customer value through long term integrated water Water Resources resource strategies

Manage infrastructure to meet stakeholder’s needs now and in Infrastructure the future

A motivated, healthy and engaged workforce delivering Workforce exceptional outcomes

Communication Effective communication strengthens and grows relationships

Provide an outstanding level of service quality products and Technology innovative solutions to our employees

Maintain financial health to achieve the expected level of return Financial Performance to customers, stakeholders, and investors

Budget Process The budget process is an essential part of the Authority’s financial plan. It is structured to integrate key decision makers throughout the organization in order to incorporate their experience and recommendations into producing the budget document. Prior to creating the budget, the strategic plan is reviewed and updated, if necessary. The strategic plan guides the Authority’s decisions on resource allocation, first through a long term, high- level view in the 5-year Capital Budget, followed by the more tactical focus outlined in the annual Operating Budget. Both planning documents are presented to the Authority’s Board of Supervisors in annual workshops for consultation and feedback. The process is completed with the final approval of the Operating Budget through a budget resolution.

10.01.20 3 The Operating Budget process begins in February when department managers prepare budget documents to submit their preliminary requests to division directors. The managers use a zero-based budgeting method in which each budgeted expense line item is justified by an explanation. These requests take into account routine operating costs, personnel changes, and previously unidentified issues. Major capital purchases and projects as well as new personnel requests are identified and presented to the Board during the capital budget workshop and are reintroduced in the proposed Operating Budget for consideration by the Board.

Planning for capital improvements and equipment purchases is an essential function of good financial management. The Authority is responsible for the efficient expenditure of monies received from ratepayers. The Capital Improvements Plan (CIP) is designed to assist in that function and is developed each year to project what the organization's capital needs will be and how such expenditures will be funded over the next five (5) years.

The Capital Budget is not a "wish list". It is intended to be a schedule of needed projects or equipment with realistic cost estimates. The Capital Budget lists capital outlay and capital improvement projects, together with cost estimates and proposed methods of funding. However, it does not lock the Authority into any specific expenditure over the next five (5) years. Each year, the Authority will update the Capital Budget incorporating any adjusted priorities, unforeseen events, unique opportunities, or changing cost estimates which have arisen over the course of the previous year.

The Capital Budget process requires focus on the Authority's future needs and funding requirements. It aligns long-term fiscal forecasts with our overall strategic goals and objectives.

Definition For accounting purposes, capital assets include property, plant and equipment and are capitalized at cost when purchased. The capitalized expenditure is then depreciated using the straight-line method with the useful lives of the various depreciable assets estimated at 4 – 25 years for buildings and improvements and 5 - 100 years for machinery, equipment, and underground infrastructure. The Authority’s current capitalization threshold is $5,000. This excludes certain information technology equipment (i.e. desktop, laptops, and tablet computers), metering devices, and SCADA equipment (i.e. radios) which have components that fall below capital threshold but are of significant value in aggregate.

10.01.20 4 A capital project is requested for a newly purchased capital asset or an investment that improves the useful life of an existing capital asset (as opposed to merely maintaining the value of that existing asset). If, however, the expense only serves to maintain the asset at its current condition, the cost is deducted fully in the year of the expense and charged against the Authority’s operating budget.

The operating budget looks at the non-capital items and the annual cost of operations. It includes charges to provide services to the Authority’s customers as well as personnel cost. These requests take into account routine operating costs, personnel changes, and previously unidentified issues. Major capital purchases and projects as well as new personnel requests are identified and presented to the Board during the capital budget workshop as mentioned above and are reintroduced in the proposed Operating Budget for consideration by the Board.

Budget Control After the budget is approved by the Board of Supervisors, staff prepares and presents a monthly financial report to the Board starting in January. This allows key decision makers to compare actual results to projections, and, if necessary, to re- adjust the plan. The overall budget total and the personnel budget component may not be changed during the fiscal year without specific action by the Board. Other line item budget adjustments or transfers that do not alter the total budget are allowed and managed through the Authority’s internal budget controls.

Budget Format The Authority’s budget is separated into specific funds: the Operating Fund, the Water System Development Charges (SDC) Fund, and the Wastewater SDC Fund. The Operating Fund is accounted for as an enterprise fund. Rates, fees and charges are established by the Board of Supervisors. The revenue generated by rates and other operating revenues are used to fund the Authority’s operations. The Water and Wastewater SDC Funds are accounted for as restricted system development funds. System development charges are established by the Board of Supervisors. Only those capital costs specifically attributed to new development or growth-related impacts can be legally funded with system development revenue.

The budget summary presents budgeted sources and uses so that the reader can see all aspects of the budget in a single view. It shows the beginning reserves for each category, sources and uses of revenue, and the final reserve estimated balances for each fund. The goal of the budget submittal is to meet all of the Authority’s reserve requirements including maintaining the renewal & replacement fund, debt reserve, emergency operating reserves, and an overall minimum reserve of 15% of operating expenses plus debt and payment in lieu of taxes (PILOT) fees.

10.01.20 5

Basis of Accounting & Budgeting The Authority operates and reports as an enterprise utilizing the accrual method of accounting. Revenues are recognized when earned and expenses are recognized when incurred. The Authority incorporates all applicable Government Accounting Standards Board (GASB) pronouncements in accounting and reporting for its operations.

The Authority’s annual budget and five-year forecast are based on the accrual method of accounting and are structured to reflect the same format as the Authority’s audited financial statements.

The budget summary presents budgeted sources and uses so the reader can see all aspects of the budget in a single view. It shows the beginning reserves for each category, sources and uses of revenue, and the final reserve estimated balances for each fund. The goal of the budget submittal is to meet all of the Authority’s reserve requirements including maintaining the renewal & replacement fund, debt reserve, emergency operating reserves, and an overall minimum reserve of 15% of operating expenses plus debt and payment in lieu of taxes (PILOT) fees.

A balanced budget is when the Authority’s operating revenues exceed the operating expenses plus debt, payments in lieu of taxes (PILOT) and required reserves. Since its inception in 2003 the Authority has presented a balance budget.

Long-Term Overall Assumptions When making any financial forecast, certain assumptions are made. Unanticipated events or circumstances could change over the period of the forecast and will affect the assumptions. In some forecasts, best case and worst case models can be presented to show the upper and lower range of possibilities. However, with the infinite number of variables facing the Authority, this would be very difficult to summarize. To simplify the process of preparing and presenting this forecast, some general assumptions are applied to all funds unless unique factors warrant an exception. It should be noted that the long- range forecast does not reflect the future acquisition of any utility systems or the potential capital improvement projects associated with those systems. Specific category assumptions are located in the Planning section later in the operating budget.

10.01.20 6 Financial Practices & Guidelines The Authority’s Financial Health is predicated on following sound financial practices that are designed to adhere to bond covenant requirements and achieve internal policy goals and objectives. Below are the financial practices that were followed when developing this year’s operating & capital budgets:

1. The direct cost of each of the Authority’s system should be accounted for separately. Common and joint costs will not be accounted for separately, but rather, when needed, allocated between each utility utilizing an equitable approach. 2. Rates should be established utilizing a “generally accepted” rate setting methodology 3. The Utility should be managed to maintain financial stability over time 4. Rates should be stable over time 5. The Authority shall maintain utility facilities at a level which will provide for the public well-being and safety of the residents 6. The Authority’s financial & operating needs shall be balanced against the rates and financial impacts to customers 7. Operating Margin should be stable over time

The above practices are reviewed annually and updated when necessary. Financial practices and guidelines may be revised, added, or removed to ensure the Authority maintains good stewardship over its resources and financial health into the future.

Overall Financial Policies 1. Debt Service – The Authority will maintain a debt service coverage ratio of above 150% or 1.5x to avoid funding an additional debt service reserve. The debt service coverage ratio will be no lower than 115% or 1.15x. In FY19 the ratio was 4.30x.

2. Reserve Requirements – The Authority will maintain the minimum reserve amounts as follows:

a. Minimum Operating Reserve will be equivalent to four weeks to total operating & maintenance expenses, excluding PILOT fees. Targeted for FY20 is $7.3 million. In FY19 this target was met at $6.9 million.

b. Minimum Capital Reserve will be no lower than 15% of operating & maintenance expenses, debt service, and PILOT fees. Targeted for FY20 is $14.2 million. In FY19 the reserve was 92.3% and was well over the target.

c. Required to maintain a Renewal & Replacement Reserve that will be increased each year by the Engineering News Record Construction Cost Index. The index used for FY20 was 3% and resulted in the reserve to be set at $3.4 million. In FY19 the target was met at $3.3 million.

3. Renewal & Replacement Funding - Require to fund the Renewal & Replacement capital each year in the amount of the average five year depreciated net asset value. Required funding for FY20 was $16.0 million. FY19 $33.5 million was transferred to the Renewal & Replacement fund, above the required target.

10.01.20 7 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 8 Water & Wastewater System

10.01.20 9 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 10

THE WATER SYSTEM

The Authority’s water facilities include thirteen (13) operating water treatment plants consisting of wells, ground storage tanks, high-service pumps, and water distribution systems. Florida Department of Environmental Protection (FDEP) water treatment plant permits regulate the amount of water (groundwater, surface water, etc.) that is treated by the water plants and distributed to the potable water distribution system for drinking water consumption. Water plant permitted capacities are based on the maximum daily flow processed by the water plant. The Authority’s water facilities currently rely exclusively on ground water derived from the upper Floridan aquifer. Water is distributed through 1,419 miles of water mains. Raw water supply wells currently pump an average of 40.3 million gallons per day (MGD) to the thirteen (13) water treatment plants strategically located throughout the service area. The combined permitted capacity for those plants is 72.7 MGD. Security Vulnerability Assessments and Emergency Response Plans have been developed for each water treatment facility in accordance with Federal requirements.

The following is a list of the existing TOHO Water System treatment plants that are in service:

Toho I (Kissimmee System) Richard McLaughlin (North Bermuda) Northwest Parkway Southwest Camelot West Spring Lake Village (Morningside East)

Toho II (Harmony System) Harmony

Toho III (Formerly Florida Water) Bay Lakes Estates Intercession City Buenaventura Lakes Hidden Glenn

Toho IV (Poinciana System) Peabody (WTP #2) Bella Lago (WTP #6) Huron (WTP #5) Pleasant Hill Lakes

Water Treatment Plants Permitted Average Max Day (MGD) Flow (MGD) Flow (MGD)

Toho I (Kissimmee System) 54.400 31.715 45.247 Toho II (Harmony System) 1.296 0.350 0.645 Toho III (Formerly Florida Water) 5.262 0.373 1.900 Toho IV (Poinciana System) 11.743 7.805 9.821 Total All Water Plants 72.701 40.342 57.613 Source: Engineering Department Sep 2020. Annual average and maximum day flows – Fiscal Year 2020

10.01.20 11

THE WASTEWATER SYSTEM

The Authority’s wastewater facilities include eight (8) water reclamation plants, sewage collection facilities, and wastewater effluent disposal facilities and sites. Each water reclamation facility (WRF) operates independently for set geographic areas throughout the service area. Together, they treat a consolidated average of 25.8 MGD of wastewater and are permitted for 33.3 MGD. The sum of the highest three-month treated average of all plants is 27.2 MGD. The wastewater is delivered to the various WRFs through a network of 1,217 miles of collection and transmission system piping with 433 wastewater pump stations and 352 miles of reclaimed water distribution mains. The highly treated reclaimed water produced by the WRFs is delivered to irrigation customers or routed to the system’s rapid infiltration basins to recharge the ground water. The waste solids from the treatment process, termed “bio-solids,” are processed to kill pathogens, and then spread over agricultural lands as a fertilizer. The wastewater system operates under the jurisdiction of the FDEP.

Permitted Average 3-Month* Utilization Wastewater Treatment Plants (MGD) Flow (MGD) Flow (MGD) Percentage

Toho I (Kissimmee System)

South Bermuda 14.000 11.615 12.505 83.0%

Sandhill 6.000 4.123 3.907 68.7%

Camelot 5.000 3.526 3.409 70.5%

Parkway 1.500 1.025 1.180 68.3%

Toho II (Harmony System) 0.499 0.222 0.219 44.5%

Toho IV (Poinciana System)

Cypress West 3.500 2.796 3.033 80.0%

Lake Marion 2.000 1.680 2.004 84.0%

Walnut Drive 0.850 0.814 0.952 95.8%

Total All Wastewater Plants 33.349 25.801 27.209 77.4%

Source: Engineering Department, September 2020 – Fiscal Year 2020 *Highest three-month average flow within 2020

10.01.20 12 µ ORANGE SJRWMD

NORTHWEST WTP ØÑ CAMELOT WEST WTP FALCON FIRE (RECLAIM) ØÑ ØÑ R. MCLAUGHLIN WTP ØÑ ØÑ

CAMELOT WRF !.

SAND HILL WRF !. INDIAN RIDGE (RECLAIM) TWA 1 - Kissimmee ØÑ

ØÑ SOUTH BERMUDA WRF !.

SOUTHWEST WTP ØÑ Ñ INTERCESSION CITY WTP HIDDEN GLEN WTP Ø ØÑ

SFWMD

SWFWMD

BELLALAGO WTP PEABODY WTP ØÑ ØÑ

TWA 4 - Poinciana

CYPRESS WEST WRF !.

WALNUT DRIVE WRF !.

Legend OSCEOLA

ØÑ Water Treatment Plants !. WRF

HURON WTP TWA Service Area ØÑ !. WMD Boundary LAKE MARION WRF

Urban Growth Boundary

Osceola County Boundary

TWA Operating Districts

TWA 1

TWA 2

TWA 3 0 1 20.5 Miles TWA 4

10.01.20 13 µ ORANGE

SPRING LAKE WTP TWA 3 - BVL ØÑ BUENAVENTURA LAKES WTP ØÑ

PARKWAY WRF !. SJRWMD

PARKWAY WTP ØÑ

BAY LAKE WTP ØÑ

HARMONY (RECLAIM) ØÑ HARMONY WTP HARMONY WRFØÑ!.

Legend OSCEOLA

ØÑ Water Treatment Plants !. WRF TWA Service Area

WMD Boundary

Urban Growth Boundary

Osceola County Boundary SFWMD

TWA Operating Districts

TWA 1

TWA 2

TWA 3 0 1 20.5 Miles TWA 4

10.01.20 14 Planning Summary

10.01.20 15 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 16 2020 BUDGET CALENDAR IMPORTANT DATES

NOVEMBER 2019 DECEMBER - 2019 CAPITAL BUDGET S M T W T F S S M T W T F S DEC 17 - 18, 2019 and JAN 9, 2020 1 2 1 2 3 4 5 6 7 Joint Budget Planning - Services focused workshops (New) 3 4 5 6 7 8 9 8 9 10 11 12 13 14 JAN 21 - MAR 6 7 wks 10 11 12 13 14 15 16 15 16 17 18 19 20 21 Staff Budget Preparation 17 18 19 20 21 22 23 22 23 24 25 26 27 28 JAN 28 - FEB 7 2 wks 24 25 26 27 28 29 30 29 30 31 Technology Project Review Meetings MAR 9 - 20 2 wks 2020 Compile and present budget submital packets JANUARY FEBRUARY MAR 23 - MAY 1 6 wks S M T W T F S S M T W T F S Leadership Team review period 1 2 3 4 1 MAY 4 - 15 2 wks 5 6 7 8 9 10 11 2 3 4 5 6 7 8 Update final changes 12 13 14 15 16 17 18 9 10 11 12 13 14 15 MAY 18 - 22 1 wk 19 20 21 22 23 24 25 16 17 18 19 20 21 22 Prepare Budget Workshop Draft Packets 26 27 28 29 30 31 23 24 25 26 27 28 29 MAY 25 - 29 1 wk Board Review Period - Distribute Final Draft JUN 5 or 12 [Subject to change] MARCH APRIL Board Workshop - Capital Budget S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 OPERATING BUDGET 15 16 17 18 19 20 21 12 13 14 15 16 17 18 FEB 24 - APR 3 6 wks 22 23 24 25 26 27 28 19 20 21 22 23 24 25 Staff Budget Preparation 29 30 31 26 27 28 29 30 APR 6 - 24 2 wks Compile and present budget submital packets APR 27 - JUN 5 6 wks MAY JUNE Leadership Team review period S M T W T F S S M T W T F S JUN 8 - 19 2 wks 1 2 1 2 3 4 5 6 Update final changes 3 4 5 6 7 8 9 7 8 9 10 11 12 13 JUN 22 - 26 1 wk 10 11 12 13 14 15 16 14 15 16 17 18 19 20 Prepare Budget Workshop Packets 17 18 19 20 21 22 23 21 22 23 24 25 26 27 JUL 29 - JUL 3 1 wk 24 25 26 27 28 29 30 28 29 30 Board Review Period - Distribute Final Draft 31 JUL 10 or 17 [Subject to change] Board Workshop – Operating Budget JULY AUGUST S M T W T F S S M T W T F S 1 2 3 4 1 PUBLIC HEARING AND ADOPTION OF RATES, FEES, AND THE BUDGET

5 6 7 8 9 10 11 2 3 4 5 6 7 8 JUL 28 - AUG 24 12 13 14 15 16 17 18 9 10 11 12 13 14 15 Notice of Public Hearing, if necessary 19 20 21 22 23 24 25 16 17 18 19 20 21 22 SEP 9 26 27 28 29 30 31 23 24 25 26 27 28 29 Public Hearing, if necessary 30 31 Adopt Budget Resolution

SEPTEMBER OCTOBER S M T W T F S Staff TBudgetW PreparationT F - CapitalS S 1 2 3 4 5 M 1 2 3 4 Staff Budget Preparation - Operating 6 7 8 9 10 11 12 6 7 8 9 10 11 13 14 15 16 17 18 19 5 13 14Holidays15 16 17 18 20 21 22 23 24 25 26 12 20 21 22 23 24 25 Bold denotes Board Meeting Dates 27 28 29 30 19 27 28 29 30 31 26

10.01.20 17 Long-Term Overall Assumptions Producing any financial forecast requires that certain assumptions be made. Unanticipated events or circumstances could change over the period of the forecast and may affect the assumptions. As in the case of the previous FY20 budget compared to the current FY21 budget submittal. In some forecasts, best case and worst case models can be presented to show the upper and lower range of possibilities. However, with the infinite number of variables facing the Authority, this would be very difficult to summarize. To simplify the process of preparing and presenting this forecast, some general assumptions are applied to all funds unless unique factors warrant an exception.

The underlying assumptions are as follows: 1. Overall economic conditions for the state and national scale presents a significant slowing of growth. We expect the local regional economy will be adversely affected as travel is expected to be reduced in the first half of the fiscal year. The recovery is estimated will be initially slow but to strengthen over the next twelve to eighteen months. In addition, the Authority has adopted water conservation policies and programs that we assume will reduce average water consumption during the forecast period thus reducing the per capita usage. Consequently, we have reduced our growth rates accordingly, and project a reduced customer growth in the first year that slowly increases over the five year planning period. An average of 2.1% over the five fiscal years of the capital plan is being used to recognize both the current economic condition and the continued per capita reduction in usage. The conservation behavior is not being applied to reclaimed water as its usage has not been affected by current water conservation methods and it continues to exceed growth expectations. The following table shows a summary of the forecasted customer growth assumptions: New Customer Growth Assumptions Service 2021 2022 2023 2024 2025

Water & Irrigation 1.5% 2.0% 2.0% 2.5% 2.5% Wastewater 1.5% 2.0% 2.0% 2.5% 2.5% Reclaimed Water 2.0% 2.5% 3.0% 3.5% 3.5%

*

2. Projected revenues from operations are based primarily on metered sales generated from user rates. Currently, usage rates are not scheduled to be adjusted in FY21 in response to the current economic situation. The amount of the adjustments for FY22 through FY24 is currently projected at 4.0%. This is an increase over last year’s projections of 3.0% to offset both the impact of the elimination of an adjustment in FY21 and the reduced revenue stemming from the recession. The final year is currently projected for a 2.5% adjustment. These future annual adjustments are necessary to account for inflation and to provide revenue sufficient to cover operating expenses, satisfy annual debt service obligations, meet coverage test requirements, fund required transfers, and meet financial policy thresholds.

10.01.20 18

Proposed Rate Adjustments % of Bills 2020 2021 2022 2023 2024 2025 Rate Adjustment Percentage Residential ¾” (4,000 Gallons)* 74% $43.88 $43.88 $45.60 $47.38 $49.24 $50.45 Year over Year Dollar Change $.00 $1.72 $1.78 $1.86 $1.21 Commercial 2” (30,000 Gallons) 52% $387.04 $387.04 $402.5 $418.62 $435.36 $446.24 Year over Year Dollar Change $.00 $15.48 $16.10 $16.74 $10.88 *Includes $1.00 backflow charge

3. Water & wastewater revenue growth is projected to increase at an average of 5.5% and reclaimed water revenue growth is projected to increase at an average of 5.6% over the five- year period. The following table shows a summary of the forecasted revenue growth:

Projected Usage Revenue Growth Service 2021 2022 2023 2024 2025

Water & Irrigation 1.2% 6.1% 6.1% 6.1% 6.1% Wastewater 2.7% 6.1% 6.1% 6.1% 6.1% Reclaimed Water 0.2% 6.6% 7.1% 7.1% 7.1%

4. The interest calculated on investments is based on an average annual return of 1.4% over the five years.

5. We estimate that a 90% annual capital plan execution rate will be achieved throughout the five year capital period in the operating fund.

6. We project that in FY20 overall revenues and expenses will be near or at 97% of current operating budget.

7. Forecasted operating costs vary with each division. The only operating expense categories projected to exceed the general inflation factor of 2.5% over the forecast period is personnel & health insurance. All other expense categories are expected to closely follow the general inflation factor.

Overall expenses are projected to increase at a five year average rate of 5.4% including increased personnel costs. That creates a higher rate of inflation when measured against the 2020 Consumer Price index (April to April) for water & wastewater services at 3.0%.

The table below lists the major inflation factors and categories: Escalation Factor Key 2021 2022 2023 2024 2025 General Inflation 2.5% 2.5% 2.5% 2.5% 2.5% Salary and Wages 5.0% 5.0% 5.0% 3.0% 3.0% Health Insurance 8.0% 8.0% 8.0% 8.0% 8.0% Utility Services – Electric 2.5% 2.5% 2.5% 2.5% 2.5% Chemical & Petroleum Supplies 2.0% 2.0% 2.0% 2.0% 2.0%

10.01.20 19 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 20 Budget Summary

10.01.20 21 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 22 The Authority’s financial condition has weathered the economic crisis brought on by the Pandemic. The Authority has been able to maintain a stable financial outlook through the first nine months of fiscal year 2020. Revenues are projected to fall under forecasted budget expectations during the year while expenditures have generally been under the budget. The net result is projected to maintain the Authority’s FY20 net revenue position or fall slightly under the budget forecast. Economic conditions continue to be strained and are not expected to change significantly for the remainder of this fiscal year as the service area is heavily dependent on the tourism industry.

The Orlando-Kissimmee Metropolitan Statistical Area (MSA) is comprised of Lake, Orange, Osceola, and Seminole Counties. Osceola County’s population was estimated at 370,500 for 2019 estimated by the United States Census Bureau. The MSA’s unemployment rate is 9.8% as of September 2020 (not seasonally adjusted) and is 2.6% higher than the Florida rate as this region has been affected at a disproportionate rate. Last year at that time, the rate was 3.0%. Excess home inventories have continued to hold steady, making room for new commercial activity to proceed at a steadily increasing pace throughout our service area. FY21 revenue and expenditure projections have been reduced based on the current economic climate and the decision to forgo rate adjustments.

2019 2020 2020 2021 Description Actual Budget Estimate Budget

Operating Revenues1 $131,824 $138,722 $135,780 $137,879

Operating Expenses 61,626 68,155 65,663 71,372

Net Operating Revenues 70,198 70,567 70,117 66,507

Debt Service 16,721 16,339 17,277 18,469

Net Revenues after Debt Service 53,477 54,228 52,840 48,038

Other Required Transfers (R&R) 14,788 15,901 15,901 16,115

Other Required Transfers (PILOT) 10,800 11,546 11,434 11,273

Net Revenues after Required Transfers $27,889 $26,781 $25,505 $20,650

Debt Service Coverage 3.86x 4.32x 4.06x 3.60x

Required Debt Service Coverage 1.15x 1.15x 1.15x 1.15x

Debt Service Coverage, after Required Transfers 2.55x 2.61x 2.42x 1.99x 1 Excluding non-operating revenues in calculating the DSCR

Staff has developed revenue projections for FY21 incorporating no rate adjustment and a 2.5% customer growth rate for a total projected water, wastewater, and reclaimed water revenue growth of 1.9%. The rate adjustment combined with the growth rate assumption together provide revenue to offset operating expenditures, satisfy debt service

10.01.20 23 requirements, make the necessary infrastructure $137,879 $141,000 $135,780 $131,834 investments, meet reserves targets, and continue to position the Authority for future Alternative Water Supply financing. The overall customer growth rates for over the twelve-month period, June 2019 to June $94,000 2020 was approximately 4.8%. The decrease in the projected growth rate for FY21 is to maintain a conservative approach to forecasting revenues for the next fiscal year based on current economic $47,000 conditions. The proposed FY21 budget reflects an 8.8% increase in operating expenditures compared to the $0 estimated expenditures for FY20 and shows an 2019 2020 2021 increase of 4.7% compared to the FY20 budget. Water Wastewater The projected increase is estimated to be 6.6% from Reclaimed Other Oper Rev FY19 to FY20. Operating Revenues (in 000s) Staff has attempted to prepare a balanced and responsible operating budget that reflects the needs of the Authority’s customers and stakeholders while continuing to be responsive to current economic conditions. A general inflation factor of 4.0% was utilized to increase some operating budget expenditures. Health insurance costs are projected to increase at a rate greater than general inflation; however, the continuing investment in and operation of Non Personnel the health clinic and in the Operating Cost (in 000s) FY20 FY21 $ % wellness program has Contracted Services $9,549 $11,310 $1,761 8.6% continued to help mitigate Travel & Training 322 472 150 18.4% health costs. While energy Utilities 6,484 6,843 359 46.7% costs remain in-line with Auto Maintenance 991 998 7 5.5% general inflation resulting in Other Maintenance 5,554 7,402 1,848 0.7% modest impacts on electric and Gas & Oil 633 699 66 33.3% chemical supply costs, overall Other Supplies 4,476 3,050 (1,426) 10.4% spending levels continue to Chemicals 2,042 2,093 51 (31.9%) outpace inflation primarily Other Operating Costs 5,900 6,239 339 2.5% driven by the steady growth in Total $35,951 $39,107 $3,156 8.8% customers that has remained above 3% over the past four years. Operating expenses in the budget are projected to increase by approximately $5.7 million or 8.8% over the estimate for FY20. Approximately $2.6 million or 45% of the increase in operating expenses is related to personnel expenses and $3.2 million or 55% of the increase is related to operating and maintenance expenses (O&M). Some of the increases in O&M expenses are driven by some new or increased program expenses or relate to the growth of the utility system. The operating margin is estimated to be 51.6% for FY20 then projected to decrease to 48.2% in FY21.

10.01.20 24 In addition to the regular O&M expense increase, the personnel budget includes approximately $612k for ten (10) new positions. The ten (10) new positions being added for FY2021 are primarily in response to the continued growth of the Authority’s customer base and responsibilities. Four (4) positions are being added in the Operations division, a Construction Utility Worker, a Contract Administrator, and two (2) Systems Mechanic Assistants for Maintenance. The Engineering division is adding two (2) positions; a Professional Engineer and Permit Coordinator. The Business Service Division is adding two (2) positions; a Budget Analyst and a Administration, Human Procurement Analyst. Two (2) positions are being Business 14.5 Resources, Services, 18.5 9.0 added to Information Technology, a Security Office of the Network Engineer and a Project Manager. General Information Counsel, 3.0 Technology, 21.5 Overall, the FY21 budget request increases total Operations, Engineering, authorized positions from 369.5 funded FTEs to 113.0 379.5 funded FTEs; the overall personnel budget is 44.0 projected to grow by 8.6% ($2.6 million) over the Field Customer current year-end estimate. Services, 82.0 Service, 74.0 The budget for personnel services also Personnel Expense (in 000s) includes funding proposals in two other $36,000 areas: health insurance and a proposed $32,264 cost of living/merit pay increase. Health $29,712 insurance cost for FY20 is projected to be $27,433 within the adjusted budget based on the current year’s medical claims through June. $24,000 Benefits Expenses for FY20 are estimated to Other Pay increase by 8.3% over the actual expenditures for FY19. The Authority is self- Overtime insured for health insurance; projected Salaries $12,000 adjustments are based upon actual year-to- date claims paid for the current fiscal year on a per employee basis. The actual final FY20 cost will not be known until the end of the fiscal year and could differ from the $0 projected level depending on claims activity. 2019 2020 2021 FY21 expenses are projected to increase from FY20’s estimate by 6.0%. The Authority’s investment in the organization-funded Wellness Center is expected to continue to mitigate health cost over an extended period of time as employees continue to utilize the services offered for preventive care.

The FY21 budget request contains a proposed 1.5% pay adjustment composed of a 1.0% across the board pay adjustment and a 0.5% merit adjustment available to employees based upon their annual evaluations. Currently there is a compensation survey being conducted and the results are expected to have several pay adjustments for personnel. Incorporated in the budget is approximately $410K to absorb the adjustments. If the total

10.01.20 25 adjustments exceed the anticipated amount the adjustments will be phased in over two to three years depending on the amount of the adjustment. The Authority expects the results to be presented in the first quarter of the fiscal year.

The budget submittal also includes funding to maintain the Authority’s contribution rate to the employee retirement Defined Contribution Plan (401a) at 6.5% of pay for those participating employees. The contribution for the defined benefit portion of the Authority’s retirement plan will be adjusted next year to meet the requirements of the actuarial analysis of modified funding needs based on the stock market’s performance over the past year.

Other compensation categories also include the Performance Bonus Program and sick and vacation leave buy back for employees with sick or vacation leave in excess of the maximum allowable at the end of the calendar year. The Performance Bonus Program awards employees for meeting their performance expectations.

Community Support (in 000's) The budget includes an allowance for unrestricted $300 sponsorships for FY21. The total amount budgeted for $264 the sponsorship allowance is still based on $1.00 per $248 billed water customer. The funding requested for the next fiscal year is approximately $113.8k. Additionally proceeds from sales of retired vehicles may be directed $200 to increase the sponsorship budget.

$126 Funding of the Toho Assistance Program (TAP) was initiated in FY17 and is being administered by the $100 Council on Aging. TAP assists customers with financial difficulty to pay their water and wastewater utility bills upon meeting certain criteria. A total of $150k has been set aside to fund TAP. This is an increase of $100k over $0 the FY20 budget. This increase is a result of the 2019 2020 2021 adverse economic effects that the Pandemic has caused. In FY20 the Board approved increasing the funding to assist those customers that have lost their jobs. Additionally it is projected that the TAP Donation Program, in which current Authority customers may donate through their bill to add help TAP funding, will be initiated in the first quarter of the fiscal year. The Authority has committed to match donations it collects throughout the year. Debt service is projected to be $18.5 million in FY21. The Operating Budget proposal includes a projected 1.9% increase in billed revenue as with no rate adjustment and an estimated 2.5% rate of customer growth for FY21. The billed revenue increase is projected to total $2.4 million. Based on the current FY20 estimates of actual revenue and expenditures and the corresponding projections for FY21 the projected capital reserve at the end of FY21 will be approximately $60 million, primarily the result of a combination of capital spending being off pace with the initial forecast.

10.01.20 26 Finally, this budget submittal meets all of the Authority’s reserve requirements, including the future capital outlay reserve. In addition, it has $3.4 million in the renewal and replacement fund and $7.7 million in minimum operating reserves. The projection of the minimum required reserve carryover of 15% of operating expenses is budgeted at approximately $14.2 million is expected to be well over that target.

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10.01.20 27 TOHOPEKALIGA WATER AUTHORITY 2021 Annual Budget Net Operating Revenue Summary (in 000's)

Tohopekaliga Water Authority's budget combines all the utility systems into one for budgeting & accounting purposes. The budgetary funds are combined for financial reporting purposes at the end of each fiscal year. The schedule below is a summary of the projected sources of revenues and the operating expenses, excluding depreciation & amortization.

Actual Budget Estimate Request $ Change FY2019 FY2020 FY2020 FY2021 from Estimate

Operating Revenues Metered Sales $ 119,842 $ 127,825 $ 125,928 $ 128,371 $ 2,443 Other Operating Revenues 11,982 10,897 9,852 9,508 (344) Non-Operating Revenues 1,043 1,031 705 705 - Total Revenues $ 132,867 $ 139,753 $ 136,485 $ 138,584 $ 2,099

Operation & Maintenance Personnel Services 27,433 30,367 29,712 32,264 2,552 Contracted Services 8,795 10,676 9,549 11,310 1,761 Travel & Training 504 680 322 472 150 Utilities 6,657 6,893 6,484 6,843 359 Auto Maintenance 1,136 826 991 998 7 Other Maintenance 4,626 5,504 5,554 7,402 1,848 Gas & Oil 719 747 633 699 66 Other Supplies 4,539 4,807 4,476 3,050 (1,426) Chemicals 1,720 1,740 2,042 2,093 51 Other Operating Costs 5,497 5,915 5,900 6,239 339 Contract Operations - - - - -

Total Operation & Maintenance $ 61,626 $ 68,155 $ 65,663 $ 71,372 $ 5,709

Net Revenues $ 71,241 $ 71,598 $ 70,822 $ 67,212 $ (3,610)

Pilot Fees 10,800 11,546 10,986 11,273 287

Annual Debt Service 16,721 16,339 17,277 18,469 1,192

Available for Capital & Reserves $ 43,720 $ 43,713 $ 42,559 $ 37,470 $ (5,089)

10.01.20 28 TOHOPEKALIGA WATER AUTHORITY 2021 Annual Budget Sources and Uses (in 000's)

Tohopekaliga Water Authority's budget is separated into three funds for budgeting and accounting purposes. The budgetary funds are combined for financial reporting purposes at the end of each fiscal year. The schedule below is a summary of the sources and uses of the total system's revenues.

System Development Funds Operating Total SOURCES & USES Fund Water Wastewater Annual Budget

SOURCES From Fund Balance Receivables & Inventory $ 25,610 $ 25,610 Bond Proceeds 27,500 27,500 Minimum Operating Reserve 7,293 7,293 Renewal & Repl Reserve 3,376 3,376 Capital Outlay Reserves 69,534 23,811 34,555 127,900

Revenues Metered Sales 128,371 128,371 Tap Fees 2,893 2,893 Operating Other Revenues 3,320 3,320 Non-Operating Other Revenues 704 704 Rents 689 689 System Development Charges - 11,106 16,500 27,606 Interest Earnings 2,607 1,615 1,377 5,599

TOTAL SOURCES$ 271,896 $ 36,532 $ 52,432 $ 360,860

USES: Operation & Maintenance $ 71,372 $ 71,372 PILOT Fees 11,273 11,273 Debt Service 18,469 18,469 Capital Outlay 49,365 $ 12,069 $ 4,312 65,746

Carryovers and Reserves: Receivables & Inventory 25,081 25,081 Minimum Operating Reserve 7,712 7,712 Renewal & Repl Reserve 3,477 3,477 Capital Outlay Reserves 85,147 24,463 48,120 157,730

TOTAL USES$ 271,896 $ 36,532 $ 52,432 $ 360,860

10.01.20 29 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 30 Personnel Summary

10.01.20 31 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 32 Toho Water Authority Management Structure Organizational Chart

Executive Director

Deputy Director

Executive Assistant

Organizational Team Assistant to the Communication Leader Director (PT) Manager

Public Information Communication Officer Specialist

Director of Director of Director of Customer Director of Director of Business Director of Human Information Operations Service Engineering Services Resources Technology

October 1, 2020

10.01.20 33

PERSONNEL AND BENEFITS

FTEs by Divisions 2019 2020 2021 Change

Operations 108.0 110.0 113.0 3.0

Field Services 80.0 81.0 82.0 1.0

Customer Service 67.5 74.0 74.0 -

Engineering 38.5 42.0 44.0 2.0

Information 18.5 19.5 21.5 2.0 Technology

Business Services 16.0 16.5 18.5 2.0

Administration 12.5 14.5 14.5 -

Human Resources 8.0 9.0 9.0 -

Office of the General 3.0 3.0 3.0 - Counsel

Total 352.0 369.5 379.5 10.0

10.01.20 34 Personnel Expenditure Highlights The FY21 personnel services budget includes a merit increase (0.5%) and a across the board adjustment (1.0%) overall totaling 1.5%. It also includes an additional 2% to accommodate the

results of the compensation survey. It incorporates a Administration, Human vacancy allowance that is equivalent to roughly 75% of Business 14.5 Resources, Services, 18.5 9.0 the salary and benefits of all the new and currently open Office of the General positions. The budget contains requests for ten (10) new Information Counsel, 3.0 Technology, 21.5 positions, and no re-classifications in anticipation of the Operations, compensation survey recommendations. The personnel Engineering, 113.0 budget includes 379.5 FTE; with 378 full-time positions and 44.0 three (3) part-time positions. A more detailed explanation for Field Customer each division that is requesting new positions is listed below. Services, 82.0 Service, 74.0 Operations Division (4 New): . Construction Utility Worker . Contract Administrator . System Mechanics (2)

A Construction Utility Worker is being requested to assist the Lift Station Construction Crew as more Lift Stations will be going through internal rehab. A Contract Administrator is requested to ensure compliance with tracking various vendors, assist in the procurement process, and to establish standardize procurement procedures. Two (2) System Mechanics are being requested to develop a proactive preventive maintenance program. An effective program will reduce reactive repairs which are more often more expensive than regular maintenance.

Engineering Services Division (2 New):

. Permit Coordinator . Professional Engineer

A new Permit Coordinator is being requested to assist the Development Project Managers with their workloads and helping them review the commercial private development projects. The Professional Engineer is needed to help with the proposed increase in capital projects for the Authority over the next several years, including plant expansions, sewer infrastructure rehabilitation, and alternative water supply projects.

Business Services (2 New):

. Budget Analyst . Procurement Analyst

A new Budget Analyst is being requested to accommodate the complexity of the budget process. This position would be responsible for coordinating with the division managers and the Business Service division in dealing with the budget. A Procurement Analyst is being requested to help maintain the level of service that the Operation’s divisions require. The

10.01.20 35 added functions & duties in conjunction with the increased processing time for requisitions, purchase orders, contract reviews, and documents. The Procurement Analyst will help to ensure compliance with state, & federal regulations.

Information Technology (2 New):

. Security Network Engineer . Program/Project Manager

A Security Network Engineer is needed to focus on the security capabilities including issue architectural design, issue identification and resolution. A Program/Project Manager is being requested to assist in the management of the numerous Information Technology projects that the division is responsible for. The approach to have a dedicated Manager will allow the Information Technology Division to evaluate various software options, establish project timelines, and focus on software implementation.

Miscellaneous Items:

The budget submittal also includes funding to maintain the Authority’s contribution to the Total Personnel Expense (in 000s) employee retirement Defined Contribution Plan, $36,000 401a, at 6.5% of pay for those participating $32,265 employees. The contribution for the defined $29,711 benefit portion of the Authority’s retirement plan $27,434 will be adjusted next year to meet the requirements of the actuarial analysis of modified $24,000 funding needs based on the stock market’s Benefits performance over the past year. Other Pay Other compensation categories also include the Overtime sick and vacation leave buy back for employees $12,000 Salaries with sick or vacation leave in excess of the maximum allowable at the end of the calendar year. The Performance Bonus quarterly award is scheduled to be transition partly into an annual $0 bonus awarded to all employees and to be 2019 2020 2021 incorporated into the employee’s salary. Performance will not be a factor with these bonuses. The $1,200 bonus amount available to each employee will be split and $600 will be awarded bi-annually and the other $600 will part of the employee’s salary. A new high performer bonus will be tied into the employee’s evaluation and will be awarded to the highest evaluated employees.

The Authority will also be implementing the recommendations of the compensation survey. Early discussions have indicated that the Authority is below market in several employee categories. Roughly $410k has been set aside to help offset the projected cost, however it is projected that

10.01.20 36 the cost for full implementation will exceed the budgeted amount. A multi-phase implementation spanning over a few fiscal years will most likely be the desired approach to achieve the survey’s recommendations.

The Authority will be focusing on reducing overtime across several divisions and has budgeted roughly $162k (8.5%) less than the FY20 estimate for FY21. Overtime has increased an average of over 7% a year since FY16 and the Authority management will be focusing on increasing efficiencies and introducing new programs to help achieve that goal.

The Authority’s health insurance benefit is a self-insurance plan that is managed and provided through the City of Kissimmee’s health plan. The budget includes expenses associated with the employee wellness center and incentive credits for non-smokers. Overall, insurance-related benefits are projected to be $1,145 per eligible FTE employee per month. This is a projected increase from the current year’s estimate of $1,125. It is based on claims experience for the past fiscal year and the expected wellness center benefit.

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10.01.20 37 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 38 Chart of Accounts

10.01.20 39 TOHOPEKALIGA WATER AUTHORITY 2020 OPERATING BUDGET

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10.01.20 40 Account Definitions

MAJOR REVENUE SOURCES Metered Water Sales Revenue derived from the delivery of treated, potable water to utility customers.

Metered Wastewater Sales Revenue derived from the collection of the utility customer’s effluent potable water in which the utility treats and makes it viable for either reclaimed water or to recharge the ground supply.

Metered Reclaimed Water Sales Revenue derived from the delivery of treated reused potable water for the purpose of outside irrigation for utility customers.

Meters & Taps Revenue associated from the selling of water meters, irrigation meters, reclaimed water meters, sewer connections, and water & sewer taps. This revenue source has been constructed as a cost recovery basis.

Investment Income Revenues produced from the Authority’s investing activities that include interest from long‐term investments, increase in the value of held investments, and interest from agreements with utility customers.

Rents Revenues derived from contracted leases held with private entities in which a portion of property owned by the Authority is being used by the entity.

Water & Sewer System Development Charges Restricted revenue derived from new utility customers’ purchasing water & sewer capacity based on the assessed amount of water & wastewater that will be used. These revenues are committed to capacity increasing activities.

PERSONNEL SERVICES Salaries and Wages Regular salaries and wages for permanent full‐time and part‐time employees.

Other Pay Compensation other than salaries & wages or overtime. Includes gain‐sharing and holiday bonuses, standby pay, and longevity pay.

Overtime For employees that work more than their regular 40 hours per week or 8 eight hours in a day.

Benefits Insurance, retirement, worker’s compensation, and related benefits offered by the Authority.

10.01.20 41 Account Definitions

CONTRACTED SERVICES Professional Services Outside consultants including legal, engineering, and financial.

Other Services Outside services rendered by consultants and contractors working on behalf of the Authority (Not including legal, engineering, customer service, or financial).

TRAVEL AND TRAINING Training Expense Expenses associated with seminars, conferences employee development (not including travel cost)

Travel Expense Expenses that are incurred when traveling on behalf of the Authority.

UTILITIES Utility Services ‐ Electric Expense Utilities required to operate the Authority including electric, water & sewer, waste disposal, and storm water.

AUTO MAINTENANCE Auto Maintenance and Repair Repair and annual maintenance of the Authority’s vehicle fleet.

OTHER MAINTENANCE Other Equipment ‐ Generator Maintenance Repair and annual maintenance of the Authority’s generators.

Other Equipment ‐ Planned Maintenance Periodic maintenance and repair which is scheduled and planned in advanced to the Authority’s treatment and infrastructure. Other Equipment ‐ Corrective Maintenance Maintenance & repair which was not planned and is required to avoid adverse consequences.

Building and Grounds Repair Maintenance & repair to the Authority’s buildings, facilities, and plants.

GAS & OIL Petroleum Supplies Fuel costs for vehicles and generators.

OTHER SUPPLIES Office Supplies Items such as pens, paper and other related desk accessories.

10.01.20 42 Account Definitions

Other Operating Supplies Materials & Supplies used in daily operations, repair, and maintenance including Tools used to perform repair and maintenance activities.

Uniforms Clothing required by the Authority for their employees to wear while at work.

Software Expense Expenses related to computer applications including the yearly maintenance and licensing fees.

CHEMICALS Chemicals Supplies Chemicals used for the treatment of water and wastewater.

OTHER OPERATING COSTS Radio Expense All expenses related to the operation and maintenance of two‐way radios.

Other Communication Expense Land lines, cellular phones, radio, and internet services.

Freight and Postage Expense Costs for mailing bills, publications, and special deliveries.

Rental Expense Rental and lease costs for buildings and equipment that are not owned by the Authority.

Insurance Expense General liability insurance for the Authority’s facilities and infrastructure.

Printing Expense Costs for printing and producing District publications.

Customer Education and Outreach Expenses related to Public information and informing the customers on promoting conservation.

Promotional Events and Sponsorships Contributions & sponsorships to local non‐profit groups.

Advertising Expense Expenses related to placing advertisements in local publications announcing public meetings, events, and announcements.

Safety Program Expense Program designed to promote safety and reduce work related injuries.

Employee Function Expense Expenses related to various functions provided for the Authority’s employees.

10.01.20 43 Account Definitions

Permit and License Expense Permit costs required by federal, state, and local regulatory agencies.

Bad Debt Expense Expenses related to uncollected customer items.

Books, Publications, Subscriptions, Memberships Subscriptions, memberships, and publications for associations and special groups.

CONTRACT OPERATIONS Customer Billing Services Contracted services provided for the billing, collections, and customer service of the Authority’s customers.

Administrative Service Contract Services provided by the City of Kissimmee for administrative functions that are performed on the behalf of the Authority, that includes risk management.

CAPITAL OUTLAY Capital Outlay Expenditures Capital items that are purchased and installed within one fiscal year.

OPERATING FUND Operating Fund Used for activities that a fee is charged for usage and services. All cost that are associated with providing these services are also accounted for in this fund including administration, debt services, & capital cost

SYSTEM DEVELOPMENT FUND (SDC) Water & Sewer System Development Fund A restricted fund for charges that are to assist with cost recovery for water & sewer infrastructure to provide additional service capacity.

10.01.20 44 Debt Summary

10.01.20 45 DEBT SERVICE INFORMATION

Outstanding Debt – $249M | Annual Debt Service – $18.4M Outstanding Debt (In 000s)

Fixed Rate Annual Debt Service

250,000 20,000

200,000 16,000

150,000 12,000

100,000 8,000

50,000 4,000

0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Debt Administration – The Authority issued two utility system revenue bonds during 2004. The Series 2003A bonds were issued for $76,275 million and the Series 2003B bonds were issued for $41,875 million. The proceeds from the Series 2003A bonds were used to acquire the City of Kissimmee’s water and wastewater system and provided additional monies to fund capital improvements. The proceeds from the Series 2003B bonds were used to acquire the Florida Water Services Corporation’s Osceola County water and wastewater system and provided additional monies for capital improvements. Both of those bonds have now been refunded with the 2012 bank loan.

On April 30, 2007, TWA issued utility system variable rate revenue bonds. The Series 2007 bonds were issued for $92,395 million for the acquisition costs of the Poinciana Utility System from the Florida Governmental Utility Authority and to fund new construction projects. Those bonds have now been refunded with the Series 2011A bonds.

On April 28, 2009, The Authority entered into a bank loan agreement with Bank of America for $16 million for the construction of the Administrative Complex. In June 8, 2010, the Authority entered into a bank loan agreement with SunTrust Bank in the amount of $10 million for Renewal & Replacement projects. On March 24, 2011, The Authority issued the Series 2011A bonds in

10.01.20 46 the amount of $93,495 million. The proceeds were used to refund the 2007 Series variable rate bonds, terminate the outstanding swap, and convert the debt to a fixed rate structure.

On April 19, 2012, the Authority issued the Series 2012 bank loan in the amount of $91,665 million. The proceeds were used to refund the 2003A&B bonds to take advantage of low interest rates and reduce the Authority’s annual debt service. In December 2012, the Authority retired $1,465 million of the 2010 bank loan principal early.

On July 2, 2013, the Authority issued the 2013 Series bonds in the amount of $33,590 million. The proceeds were used to refund a portion of the 2012 Series note to further reduce the annual debt service of the Authority.

On April 19, 2016, the Authority issued the Series 2016 Bonds to provide funds to finance the cost of current FY16 projects, to refund a portion of the Authority’s outstanding Series 2012 Bonds, to advance refund a portion of the Authority’s outstanding 2011A Bonds, and to pay the cost of issuance of the Series 2016 Bonds. The long range goal is to build capital reserves to help in the funding of the Alternative Water Supply project in FY20.

On March 31, 2020, the Authority issued the Series 2020 Utility System Revenue Bonds to provide funds to finance the rehabilitation and replacement of the wastewater collection system and lift stations. This bond will be an interim financing instrument until the WIFIA loan proceeds begin to be drawn down.

Debt Service Trends & Outlook The annual debt service requirement has Debt Service average $15.7 million and required 29% Coverage of net revenues over the last five years. Annual principal and interest payments 4.06 on the bonds and notes, relative to net 3.86 3.60 revenue, are currently expected to decrease to require approximately 24% of net revenues over the next five-year time period. TWA issued the Series 2020 Bond issue for approximately $38.2M to work in conjunction with the WIFIA loan in FY19 FY20 FY21 which it was approved. The bond proceeds have been earmarked to help fund renewal and replacement of the aging sewer infrastructure. TWA has systematically reduced the 2010 Note by retiring the debt early. Annual debt service is expected to be at $18.5 million for FY21.

10.01.20 47 Projected Five-Year Debt Service Coverage The Debt Service Coverage (DSC) is one FY2021 FY2022 FY2023 FY2024 FY2025 way in which TWA can measure the level of debt it can maintain. The DSC is calculated 3.60x 3.83x 4.13x 4.37x 5.16x by taking the net revenues and dividing it by the annual debt payment. The DSC, excluding required transfers and SDCs, is projected to be maintained above the minimum requirement of 1.15 times. The DSC is projected for FY20 and FY21 at 4.06x & 3.6x respectively. When required transfers are included, the DSC is still projected to average 2.21x for the forecast period. This forecast is based on continued stability of operating revenue and expenditures along with the proposed rate adjustments to offset inflationary pressures.

For the five years TWA has pledged the net revenues generated by the overall system for payment of the bond issues and notes listed below. The bonds and notes are payable solely from TWA’s customer-related operating net revenue. Annual principal and interest payments on the bonds and notes are currently expected to require approximately 24% of net revenues over the projected five-year time period from FY21 through FY25.

Debt Service (in 000s) FY19 FY20 FY21 Principal $8,921 $8,601 $8,789 Interest $7,800 $8,676 $9,680 Total $16,721 $17,277 $18,469

Future financing projections: TWA is reviewing future financing options to accelerate its sewer rehabilitation capital program. Financing options under consideration include applying for federal and state loan programs and participation in the municipal bond market.

Current Authority Outstanding Debt

Revenue Bonds & Amount Current Notes (in 000’s) Issued Outstanding Interest Structure Purpose of Issue

Series 2009 Note $16,000 $10,180 3.63% Fixed Admin Building & Construction Series 2010 Note 10,000 2,573 3.77% Fixed Capital Improvements Series 2011A Bond 93,495 1,815 3.00%-5.75% Fixed Refund Bonds (Series 2007) Series 2012 Note 91,665 14,265 2.69% Fixed Refund Bonds (Series 2003 A&B) Series 2013 Bond 33,590 10,725 3.00%-5.00% Fixed Refund portion of 2012 Note Refund portion 2011A & 2012, Series 2016 Bond 173,605 171,450 2.00%-5.00% Fixed Capital Improvements Series 2020 Bond 38,160 38,160 5.00% Fixed Capital Improvements

Total $249,168

10.01.20 48 System Development Funds

10.01.20 49 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 50

Funding - Water & Wastewater System Development Charges (Impact Fees) The Authority requires that all new and expanded capacity connections pay System Development Charges (SDCs), or Impact Fees, to assist with cost recovery for portions of the major water, wastewater and reclaimed water facilities providing service capacity. The System Development Charges (SDCs) are one-time charges that are required to be maintained in separate accounts and used solely for system expansions.

If system development funding does not materialize as quickly as anticipated, future projects may be postponed until projected growth is realized. Conversely, if development funding revenues exceed projections, then growth projects may be moved forward to accommodate the related growth. Projects listed as funded by system development charges have been updated based on improvements in development activity throughout the service area relative to the previous four years.

Transfers from the Operating Fund and/or bond financing may be necessary to finance some of the scheduled projects if funds are actually expended as quickly as indicated or if impact fee collections are not received in the amounts shown. SDC funds are not allowed to be used for operating items. Those funds are accounted for separately. Fund balances are shown below for the last four years.

Water SDC Reserves FY2016 – FY2019

(In 000s) FY16 FY17 FY18 FY19 Water SDC Fund Carryover $47,215 $47,977 $57,010 $61,936 Source – System Development Revenue 8,197 11,981 15,211 39,391 Use – Capital Additions (7,435) (2,948) (10,285) (24,880) Water SDC Fund Ending Balance $47,977 $57,010 $61,936 $76,447

Wastewater SDC Reserves FY2016 – FY2019 (In 000s) FY16 FY17 FY18 FY19 Wastewater SDC Fund Carryover $39,360 $40,832 $51,247 $58,382 Source – System Development Fees 12,857 18,238 22,428 34,861 Use – Capital Additions (11,385) (7,823) (15,293) (33,307) Wastewater SDC Fund Ending Balance $40,832 $51,247 $58,382 $59,936

As with the operating fund the water & wastewater system development funds are also separated and are assigned to receive system development charges (SDCs – impact fees) and the funds are committed to system expansion related uses. These funds are considered as different “buckets” and are restricted to those expenses and capital for each fund.

10.01.20 51 System Development Charges (SDC)

Water & Wastewater System Development revenue for FY21 is expected to drop off and is projected to essentially be lower from the estimated SDCs for FY20, which dropped from FY19. The pandemic has adversely affected both new residential & commercial service request. Projecting that the pandemic will continue to affect development through most of FY21 SDC revenues have been adjusted downwards to recognize that drop in activity. The estimated revenue for FY20 is approximately $32.5 million, approximately 90% of FY20 budget. Development peaked in FY19 and the Authority is projecting that development continue to fall in FY21. The revenue projection is approximately 84% of FY20 estimate.

Wastewater SDCs Water SDCs $42,000 39,207 SDC Revenue 35,260 32,815 (in 000s)

28,857 27,671 $28,000 $15,808 $13,964 $13,211 $11,377 $11,106 $14,000

$17,480 $21,296 $23,399 $19,604 $16,565 $0 2017 2018 2019 2020 2021 The Authority additionally will be reviewing the System Development Charge rates for FY2021 and has retained a rate consultant to assist in the process to analyze the sufficiency and applicability of the current system development charges. The consultant will focus on four major areas:

1. Current Capacity 2. Projected required capacity needs 3. Projected capital projects related to increasing capacity 4. Sufficiency of current capacity rates

The Authority expects to present the final report to the board no later than the capital budget workshop. At that time staff will request any adjustments, if necessary, to the system Development charges. The Authority will continue to monitor the rapid development and if increased capacity is required, that was not included in the earlier studies, and is added to the capital improvement plan then management will decide if future System Development Charge rate adjustments are warranted, although at this time we do not know if any adjustments will be required.

10.01.20 52 TOHOPEKALIGA WATER AUTHORITY For the Fiscal Period Covering 2015 to 2025

WATER SYSTEM DEVELOPMENT (000s) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

SOURCES:

CARRYOVER OF FUTURE CAPITAL OUTLAY 48,814 47,215 47,977 57,010 61,936 76,389 23,811 23,361 16,081 10,822 3,476 CURRENT YEAR REVENUE PROJECTIONS: Water System Development Charges 6,222 7,634 11,367 13,956 15,771 13,307 10,617 11,046 12,394 13,906 14,893

Hydraulic Shares 51 17 9 8 37 3000000

Partner Reimbursement & Balance Transfers 15 0 35 225 22,111000000

Interest Earnings 399 546 570 1,022 1,472 1,660 1,002 472 394 269 143

TOTAL PROJECTED REVENUES 6,687 8,197 11,981 15,211 39,391 14,997 11,619 11,518 12,788 14,175 15,036

TOTAL SOURCES & CARRYOVER 55,501 55,412 59,958 72,221 101,327 91,386 35,430 34,879 28,869 24,997 18,512

USES:

CAPITAL ADDITIONS 8,286 7,435 2,948 775 24,880 67,575 12,069 18,798 18,047 21,521 17,353

CAPITAL CONSIDERATIONS & CONTRIBUTIONS0009,51058000000

DEBT SERVICE ON BONDS-TRANSFER 00000000000

RESERVE FOR FUTURE CAPITAL OUTLAY 47,215 47,977 57,010 61,936 76,389 23,811 23,361 16,081 10,822 3,476 1,159

TOTAL USES AND CARRYOVER 55,501 55,412 59,958 72,221 101,327 91,386 35,430 34,879 28,869 24,997 18,512

10.01.20 53 Tohopekaliga Water Authority Capital Improvements Plan - Project Listing For the Fiscal Years Ending 2021 to 2025 System Development Charge Fund ‐ Water

Project 2021 2022 2023 2024 2025 Total

Engineering Services Projects: Replacement 16" Water Main Jack & Bore at Ruby Street 124,000 0 0 0 0 124,000

Poinciana System Water & Wastewater Main Extension MPs 150,000 0 0 0 0 150,000

Parkway WTP HSP Upgrades 449,000 0 0 0 0 449,000

Cyrils Drive Reuse Main 0 1,071,000 0 0 0 1,071,000

Bill Beck Blvd. (Osceola Pkwy to Woodcrest Blvd) ‐ County 1,114,000 0 0 0 0 1,114,000

Simpson Rd. Phase 1 (Myers Rd. to Boggy Creek Rd) ‐ County 180,000 1,436,000 0 0 0 1,616,000

30" WM Ext ‐ Simpson Rd ‐ Fortune Rd Intersection 0 0 2,000,000 0 0 2,000,000

Toho/Poinciana Interconnection ‐ Hoagland Blvd 16" WM Ext 2,700,000 0 0 0 0 2,700,000

GS, FM, WM, RM, & Lift Station Upsizing 1,595,660 250,000 250,000 501,000 250,000 2,846,660

Parkway WTP Ion Exchange System 203,000 1,300,000 0 0 1,365,000 2,868,000

FM & RM Extension ‐ NeoCity Offsite 0 2,306,000 1,537,000 0 0 3,843,000

County Rd. 532 (Old Lake Wilson Rd. to US 17‐92) ‐ County 0 298,000 3,060,000 1,530,000 0 4,888,000

SW WTP‐Well 3, Raw WM & Additional GST 3,803,000 1,267,000 0 0 0 5,070,000

Simpson Rd. Phases 2, 3, & 4 (US 192 to Myers Rd.) ‐ County 0 520,000 3,915,000 1,958,000 0 6,393,000

Boggy Creek Rd. (Simpson Rd to Narcoossee Rd) ‐ County 0 550,000 550,000 2,800,000 2,800,000 6,700,000

Process Upgrade & Expansion ‐ Harmony WTP 750,000 5,300,000 2,450,000 0 0 8,500,000

Sunbridge WTP & WRF 0 4,500,000 600,000 3,000,000 3,000,000 11,100,000

Judge Farms Raw Water Main 1,000,000 0 2,364,000 5,382,000 3,588,000 12,334,000

Poinciana Blvd. (Crescent Lakes Way to Pleasant Hill Rd.) ‐ County 0 0 1,321,000 6,350,000 6,350,000 14,021,000

Project Totals (19) 12,068,660 18,798,000 18,047,000 21,521,000 17,353,000 87,787,660

10.01.20 54 TOHOPEKALIGA WATER AUTHORITY For the Fiscal Period Covering 2015 to 2025

WASTEWATER SYSTEM DEVELOPMENT(00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

SOURCES:

CARRYOVER OF FUTURE CAPITAL OUTLAY 33,946 39,360 40,832 51,247 58,382 59,936 34,555 46,435 14,727 (8,193) 2,616 CURRENT YEAR REVENUE PROJECTIONS: Wastewater System Development Charges 8,437 12,348 17,239 21,245 23,277 19,010 15,167 15,780 17,705 19,865 21,276

Reimbursement 0 0 413 2450000000

Hydraulic Shares - Assessments 130 61 60 51 121 80 80 80 80 80 80

Interest Earnings 311 448 526 887 1,177 1,420 945 810 612 65 0

Partner Reimbursement & Balance Transfers 000010,286000000

TOTAL PROJECTED REVENUES 8,878 12,857 18,238 22,428 34,861 20,510 16,192 16,670 18,397 20,010 21,356

TOTAL SOURCES & CARRYOVER 42,824 52,217 59,070 73,675 93,243 80,446 50,747 63,105 33,124 11,817 23,972

USES:

CAPITAL ADDITIONS 3,464 11,385 7,823 15,293 33,307 45,891 4,312 48,378 41,317 9,201 2,250

DEBT SERVICE ON BONDS 00000000000

TRANSFER EFFLUENT FEE TO TOHO I OPERATIN 00000000000

RESERVE FOR FUTURE CAPITAL OUTLAY 39,360 40,832 51,247 58,382 59,936 34,555 46,435 14,727 (8,193) 2,616 21,722

TOTAL USES AND CARRYOVER 42,824 52,217 59,070 73,675 93,243 80,446 50,747 63,105 33,124 11,817 23,972

10.01.20 55 Tohopekaliga Water Authority Capital Improvements Plan - Project Listing For the Fiscal Years Ending 2021 to 2025 System Development Charge Fund ‐ Wastewater

Project 2021 2022 2023 2024 2025 Total

Engineering Services Projects: Poinciana System Water & Wastewater Main Extension MPs 150,000 0 0 0 0 150,000

Carroll St ‐ John Young Pkwy to Michigan Ave ‐ County 172,000 0 0 0 0 172,000

FM Replacement ‐ Renee Terrace 328,500 0 0 0 0 328,500

Bill Beck Blvd. (Osceola Pkwy to Woodcrest Blvd) ‐ County 432,000 0 0 0 0 432,000

Kissimmee LS#150 Forcemain Reroute 0 775,000 0 0 0 775,000

Simpson Rd. Phase 1 (Myers Rd. to Boggy Creek Rd) ‐ County 97,000 771,000 0 0 0 868,000

Lake Marion Expansion to 6 MGD 0 0 0 0 1,000,000 1,000,000

South Bermuda Expansion to 21 MGD 0 0 0 0 1,000,000 1,000,000

Cyrils Drive Reuse Main 0 1,071,000 0 0 0 1,071,000

LS 57 Parallel FMs 0 0 1,300,000 0 0 1,300,000

Simpson Rd. Phases 2, 3, & 4 (US 192 to Myers Rd.) ‐ County 0 145,000 1,140,000 570,000 0 1,855,000

GS, FM, WM, RM, & Lift Station Upsizing 1,332,000 250,000 250,000 501,000 250,000 2,583,000

Wheeler & Daniels RIBs 750,000 2,775,000 1,225,000 0 0 4,750,000

County Rd. 532 (Old Lake Wilson Rd. to US 17‐92) ‐ County 0 298,000 3,060,000 1,530,000 0 4,888,000

Sunbridge WTP & WRF 0 0 5,000,000 0 0 5,000,000

Expansion ‐ SH WRF 0 3,988,000 1,436,000 0 0 5,424,000

Harmony WRF Reuse GST & HSPs 600,000 7,900,000 0 1,000,000 0 9,500,000

South Bermuda WRF Expansion to 16 MGD 450,000 7,898,000 4,252,000 0 0 12,600,000

FM & RM Extension ‐ NeoCity Offsite 0 8,857,000 5,904,000 0 0 14,761,000

Camelot WRF Expansion & Central Reuse Storage Facility 0 13,650,000 17,750,000 5,600,000 0 37,000,000

Project Totals (20) 4,311,500 48,378,000 41,317,000 9,201,000 2,250,000 105,457,500

10.01.20 56 Summary Schedules

10.01.20 57 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 58 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 1 LISTING OF PROFESSIONAL SERVICES BY DEPARTMENT

Human Resources Records Management - Large Format Scanning 12,000 Retirement: 401A & Consulting 25,000 Secuirty Support 40,000 Subtotal - Human Resources $77,000

Administration Hurricane Annual Exercise 30,000 Strategic Planning 50,000 Process Flow Data Mapping 75,000 Subtotal - Administration $155,000

Business Services Continuing Disclosure Events Monitoring Services 2,000 Bank Service Fees 3,000 Custody Fees Operating, SDC, & Project Funds 7,500 Required Actuarial Services 15,000 Financial Advisor Services 35,000 Investment Advistory Service 74,400 Rate Consulting Services 51,000 Subtotal - Business Services $187,900

Information Technology LIMS Upgrade & Customization Software Consulting 15,000 TWA Site Design & Chat 50,000 IT Master Plan 200,000 Subtotal - Information Technology $265,000

Office of the General Counsel EE Relations/Employee Law 35,100 Lobbyist 40,500 Legal Services Outside Counsel 450,000 Subtotal - Office of the General Counsel $525,600

Operations & Field Services EMS Program 10,000 Water Quality Consulting - Harmony 15,000 Digester Evaluation 20,000 Wetlands Consultant 30,000 INFOR Improvements & Maintenance 33,800 Lab Testing Services 47,000 SCADA Security Services 50,000 Surveying & Misc Consulting Services 100,000 Misc Outside Consulting & Engineering Services 344,700 Subtotal - Operations & Field Services $650,500

10.01.20 59 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 1 LISTING OF PROFESSIONAL SERVICES BY DEPARTMENT

Engineering Services Consultant Services - CIP Preparation 10,000 Easement Acquistion & Correction Action Survey Services 15,000 Legislation Development & Impact Tracking 15,000 WUP Tracking 15,000 Surface Water Spill Testing 15,200 Davenport Swamp Mitigation 25,000 Irrigation & Landscapint Plan Development 30,000 SFWMD Related Task 30,000 Utility Analysis 37,000 CPH Plan & Hydraulic Caculation Review 70,000 STOPR Wetlands Monitoring & Reporting 96,120 PMO Gravity Sewer Management Program 330,000 Wastewater Master Plan 460,000 Professional Services FY20 Rollover 679,000 Condition Assessment 700,000 Subtotal - $2,527,320

Total Professional Services $4,388,320

10.01.20 60 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 2 LISTING OF OPERATIONAL CONTRACT SERVICES BY DEPARTMENT

Office of the General Counsel Recording Fees 5,000 Subtotal - Office of the General Counsel $5,000

Human Resources Employment Assistance Program 5,000 Records Management Services 8,280 Other Misc Services 43,008 COK Administrative Charge 71,712 Subtotal - Human Resources $128,000

Administration Fire Extinguisher Inspection 1,200 Elevator Inspection 2,200 ISO 14001 Annual Audit Fee 10,000 Marketing Services 10,000 Janitorial Cleaning Service 120,000 Subtotal - Administration $143,400

Information Technology Mood Media Services 2,000 FTP Hosting Services 4,000 Disaster Recovery Site 15,000 Online Information Services 24,000 Right There LLC Services 30,000 GPS - Fleet Management 70,000 ADP Payroll Processing 90,000 Subtotal - Information Technology $235,000

Business Services Temp Agency Services 30,000 Lockbox Services 59,100 ACH Transactions 234,000 Credit Card Processing & Site Maintenance 294,000 Subtotal - Business Services $617,100

Customer Service Misc Services 1,000 DCU Repairs & Battery Replacements 13,500 Weekly Customer Service Surveys 45,000 Translation Services 86,000 Bill Print & Collection Notice Services 232,600 Large Meter Testing & Repair 217,000 Dispatch Services - After Hours 305,600 Subtotal - Customer Service $900,700

10.01.20 61 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 2 LISTING OF OPERATIONAL CONTRACT SERVICES

Operations & Field Services Fire Alarm Monitoring 260 Sampling Analysis 600 Emergency Repairs - Lift Station 5,000 DI Water System Service & Maintenance 6,100 Meter Calibration Services 6,896 Diesel Tank Inspection 10,000 SBR Maintenance 10,000 SSOC Florida - Locate Tickets 34,000 SCADA Security Upgrades 35,000 Sewer Main Cleaning 50,000 Janitorial & Cleaning Services 54,676 Gravity Sewer Cleaning 71,000 CCTV Assessment Program 95,000 Temp Services 100,000 Vac Truck Services 110,100 Hydrant Maintenance & Painting 137,000 Force Main Pigging 220,000 Misc Other Servces 319,287 Water & Sewer Availability Program - Poinciana 400,000 Residential Backflow Program 1,000,000 Bio-Solids Disposal 2,166,500 Subtotal - Operations & Field Services $4,831,419

Total - Other Services $6,860,619

10.01.20 62 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 3 LISTING OF SOFTWARE MAINTENANCE & LICENSE EXPENSE

Administration FTR Gold Server 800 Keystone 600 5,000 Subtotal - Administration $5,800

Laboratory Balances Software Renewal 500 BOD Autoanalyzer Software Upgrade 3,200 Discrete Analyzer Software Upgrade 4,500 Lab Instrumentation Software (LIMS) 14,000 Balance Load Unit 16,000 Subtotal - Laboratory $38,200

Field Services Ganite Software Support 5,000 Wincam 18,000 SYNCTA - Watts Backflow Program 40,000 Subtotal - Field Services $63,000

Engineering Services AUTOCAD 6,000 Trimble - Collection Survey 7,000 Terra Flex 10,000 Innovyze 17,000 Watergems - Bentley 28,000 Subtotal - Engineering Services $68,000

Business Services AURSI - Warehouse Inventory Ordering Maintenance 5,500 GAR SYMPRO, HP BLADSERV 7,000 MS Power BI 25,000 MS Dynamics - Merkoma, Paramount, ALTEC, & CMS 50,000 Subtotal - Business Services $87,500

SCADA Support ESX Virtual Server Annual Software Support 1,000 Data Backup VEEAM Software Annual Support 1,000 Rockwell Software TechConnect Support 5,000 VMware Vsphere - SCADA Server 5,000 Alarm Paging WIN911 8,000 GE Proficy Software & IGlobal Care Tech Support 69,000 Subtotal - Application Support $89,000

Human Resources Technical Support Services 10,000 Lenel Support - Licensing 18,000 Genetec Support - Licensing 19,000 LaserFiche 66,000 Subtotal - Human Resources $113,000

10.01.20 63 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 3 LISTING OF SOFTWARE MAINTENANCE & LICENSE EXPENSE

Customer Service Call Manager - Phone System 37,000 Customer Engagement 60,000 Aclara One 122,000 CS - CIS Infinity 150,000 Subtotal - Customer Service $369,000

Information Technology GraniteNet 7,500 Crystal Maintenance 8,000 Enterprise - ZOOM - PRESIDIO 8,000 Logistics Software 10,000 CBT NUGGETS 10,000 Solarwinds Presidio 12,000 Enterprise - WIMS OPS 15,000 Email Archive Software 17,000 Footprints 18,000 Enterprise - Netmotion Mobility XE 20,000 Ironport SMTP, Web Filter, & Management 25,000 ArcGIS Standard & Advance 25,000 Contingency 40,000 VMware Backup 65,000 Enterprise - SMARTNET - Presidio 74,000 Enterprise- INFOR-EAM 80,000 GIS ESRI ARCGIS 81,000 MS Suites 202,000 Subtotal - Information Technology $717,500

Grand Total Software Expense $1,551,000

10.01.20 64 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 4 GENERAL INSURANCE SUMMARY

Tohopekaliga Water Authority is a self-insured organization. The authority spent $1,482,495 in FY19 and budgeted $1,600,000 for FY20. The Authority is projecting that future claims should be in line with the 3-year rolling average. The overall amount budgeted was estimated of what Toho's portion of the expected premium would be. In addition Toho will have to cover insurance claims that would be paid for in the upcoming fiscal year. Actual Worker's Compensation claims are expensed in the division in which the employee operates in and is included in the personnel expense. The amount expensed in FY19 was $187,048. Claims have historically been less than the amount budgeted. The Worker's Compensaton premium in excess of the self-insured amount is charged to general insurance. The other categories of insurances that fall under the general insurance umbrella include overall general liability, property (Building, etc.), automobiles, errors & omissions, crime and aggregate excess.

All Systems General Liability Premium 559,000 Worker's Comp Coverage 541,000 Automobile Liability Premium 336,000 Estimated Future Claims 428,000 Total General Insurance 1,864,000

10.01.20 65 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Water Plants 1300 Chlorine Analyzer - BVL WTP X 7,000 1400 Chlorine Analyzer - BL, PB & HN WTPs X 14,000 1200 High Service Pump X 15,000 1200 Chlorine Bulk Tank X 16,000 1400 Chlorine Bulk Tanks - Bellalago WTP X 20,000 1200 Harmony Ammonia Bulk Tank & Skid X 25,000 1100 Parkway Pre Chlorine Pump Skid X 30,000 1100 North Bermuda Well 5 Rehab X 40,000 1400 High Service Pump Peabody WTP X 45,000 1400 Bellalago Generator For Tanks X 50,000 1300 VMS Head End Relocation & ACS - BVL WTP X 100,000 Sub Total - Water Treatment Plants $362,000

Water Reclamation Facilities - South Bermuda 1110 Influent Gate Actuator X 8,000 1110 Switch Gear Blower - MCC Building X 20,000 1110 Non Cycling Refrigerated Air Dryer X 25,000 1110 U/V Shade Balls X 25,000 1110 Reuse Variable Frequency Drive (VFD) X 72,000 1110 Reclaim High Service Pumps (HSP) X 130,000 - Parkway 1111 Composite Samplers (2) X 10,000 1111 Flow Meters (2) X 10,000 1111 Jockey Pump X 30,000 - Sandhill 1112 Refrigerated Samplers X 10,000 1112 Grit Snail Belt X 11,000 - Camelot 1113 Sample Cart X 15,000 1113 IRQ Wall Pump X 40,000 1113 HVAC System - Office X 45,000 - Harmony 1210 Flow Meters (2) X 10,000 1210 Actuator Valves X 20,000 1210 Well Pump X 30,000 1210 Reject Pumps (2) X 40,000 - Cypress West 1410 Spare Parts for Centrifuge Conveyor X 25,000 1410 Dissolved Oxygen Analyzers & Probes X 40,000 1410 Aeration Diffusers in North Treatment Basin (Addt'l) X 70,000 1410 Weir Covers X 180,000 1410 Pretreatment Screen X 500,000 - Walnut Drive 1411 Influent Gates - Chlorine Contact Chamber (CCC) X 40,000 - Lake Marion 1412 Spare Lift Station Pump X 15,000 1412 Auma Valves X 25,000

10.01.20 66 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Water Reclamation Plants - Cont. 1412 Supernatant Pump X 25,000 1412 Mower Deck X 40,000 1412 DO Analyzers & Probes X 50,000 Sub Total - Water Reclamation Facilities $1,561,000

Maintenance 1245 Wet Well Riser,Pipes,Valves and Pump Bases X 15,000 1145 Spare Pump LS 60- Fourwinds X 20,000 1245 Pump Replacement X 25,000 1145 Automatic Transfer Switches (ATS) @ M Stations X 26,000 1445 Automatic Transfer Switch (ATS) X 26,000 1145 Pump- LS 61 Southbridge X 30,000 1345 Wet Well Riser, Pipes, Valves Pump Bases X 30,000 1345 Pump Replacement X 35,000 1145 Wet Well Riser, Pipes, Valves Pump Bases. X 40,000 1445 Wet Well Riser, Pipes, Valves Pump Bases X 40,000 1145 Spare Pump LS 35 Lakeshore X 50,000 1445 Pump Replacement X 50,000 1145 Pump Replacement X 70,000 1145 Emergency Portable Generators X 80,000 1145 Master Station Trolley Crane - LS 17 & LS 6 X 140,000 Sub Total - Maintenance $677,000

SCADA Support 1144 SCADA - Network Switch X 12,000 1144 Radio Transmission Units (RTUs) Spare Parts X 12,000 1244 Radio Transmission Units (RTUs) Spare Parts X 12,000 1344 Radio Transmission Units (RTUs) Spare Parts X 12,000 1444 Radio Transmission Units (RTUs) Spare Parts X 12,000 1344 Radio Transmission Units (RTUs) X 17,000 1144 SCADA - Wireless Network Bridges & Radios X 20,000 1144 Radio Transmission Units (RTUs) X 43,000 1444 Radio Transmission Units (RTUs) X 43,000 1144 Wireless Communications - WTP Wells & Fiber Optics X 50,000 1444 SCADA Equipment - Poinciana X 50,000 1144 SCADA Lift Station Server Decentralization X 55,000 1144 SCADA Communication Towers X 63,000 1144 SCADA WRF Server Decentralization X 118,000 Sub Total - SCADA Support $519,000 Support Service 1146 Reuse Meters AMR Conversion X 15,000 1146 Convert Reuse Meters to AMR X 30,000 1146 Check Valves - Imperial Pump Station (4) X 85,000 Sub Total - Support Service $130,000

Laboratory 1148 UPS Batteries X 7,000 Sub Total - Laboratory $7,000

10.01.20 67 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Transmission & Distribution 1325 Fire Hydrants X 20,000 1125 Fire Hydrants X 25,000 1425 Fire Hydrants X 30,000 1125 Ground Penetrating Radar Unit X 36,000 1125 Lift Station Backflow, Jumpers & Interconnect Backflow X 50,000 1125 Polybutalene Replacement Program X 50,000 1425 New Water Services & Taps X 50,000 1125 New Water Services & Taps X 75,000 1125 Cross Connection Control Backflow Units X 450,000 Sub Total - Transmission & Distribution $786,000

Sewer Collection 1335 New Sewer Service X 5,000 1335 Lateral Camera - Locator Sonar X 13,000 1435 Mudhog Pump X 18,000 1235 New Sewer Service X 20,000 1335 Force Main Air Release Valves X 50,000 1435 New Sewer Service X 50,000 1135 New Sewer Service X 65,000 1135 Mini Jetter X 90,000 1435 Mini Jetters X 90,000 1335 Collection System Lining & Sealing X 100,000 1435 Force Main Air Release Valve Maintenance Program X 100,000 1135 CCTV Camera and Equipment X 135,000 1135 Force Main Air Release Valve Maintenance Program X 150,000 1135 Collection System Lining & Sealing X 350,000 1435 Collection System Lining & Sealing X 450,000 Sub Total - Sewer Collection $1,686,000

Total Operations & Treatment $5,728,000

Engineering 2100 Logistics Radios X 7,400 Sub Total - Engineering $7,400

Business Services 3100 Copier X 10,000 3100 New Employee Radio X 12,000 3100 New Employee Furniture X 25,000 3100 Field Truck ‐ Engineering X 35,000 3100 Crane Truck ‐ F450 4x4 ‐ Field Services X 150,000 3100 Roll Off Truck - Field Services X 200,000 3100 New Emplyee Vehicles X 235,000 3100 Organization Replacement Vehicles X 2,210,000 Sub Total - Business Services $2,877,000

10.01.20 68 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Customer Service 5100 Motorola Radios X 11,000 5100 Meter Relocation Project - Poinciana X 50,000 5100 AMI Data Collector Units (DCUs) X 61,000 5100 Hydroguard Meters X 135,000 5100 Small Meters X 1,283,000 5100 Water Meters X 2,230,000 Sub Total - Customer Service $3,770,000

Information Technology 6100 ESRI Navigator X 10,000 6100 Conference Room - 3rd Floor Revamp X 20,000 6100 Call Back Feature X 24,000 6100 HP GIS NAS (2) X 25,000 6100 Inventory Control System X 50,000 6100 ArcGIS for Facilities X 50,000 6100 Envision Software Request - Work Force Management X 56,000 6100 Outbound Dialer X 75,000 6100 Organization Computers X 118,000 Sub Total - Information Technology $428,000

Total Administrative Support Services $7,082,400

Operating Fund - Projects 1435 Manhold Raising Program X 10,000 1235 Five Oaks Dr. Resurfacing Project - County X 14,000 1345 Lift Station Rehab - Toho III X 25,000 2000 Lift Station Rehab Design X 30,000 2000 Parkway Pre Design Flooding Mitigation X 35,000 2000 Energy Master Plan Implementation X 50,000 2000 Taylor Creek Levee Improvements X 50,000 6000 Infor Custom Reports X 50,000 1125 Simpson Rd. PH 1 Myers - Boggy Creek Rd - County X 56,000 1435 Manhole & Valve Can Adjustments - Toho IV X 56,000 6000 Security Assessment X 60,000 6000 Cohesity Expansion X 70,000 2000 Conservation Irrigation Conversion & Retrofit X 75,000 6000 Infor EAM & SCADA Integration X 75,000 1125 West Oak St & J Young Pkwy Intersection - City X 76,000 1125 Neptune Road-Partin Settlement Rd - US 192 - County X 80,000 1125 Bill Beck Blvd - Osc Pkwy - Woodcrest Blvd - County X 84,000 1125 16" Water Main Jack & Bore at Ruby Street X 93,000 1125 King's Highway Pipe Improvements X 100,000 1145 Lift Station Rehab - Toho I X 100,000 1445 Lift Station Rehab - Toho IV X 100,000 1135 US 192 from Conn Rd - Bamboo Ln - FDOT X 112,000 1325 Royal Palm Dr - Waters Edge Dr Resurfacing - County X 115,000 6000 Security Project X 120,000 1445 Stationary Emerg Generators/Bypass Pumps - Toho IV X 125,000

10.01.20 69 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Operating Fund - Projects 1445 By-pass pumps for - LS-39P, LS17P, LS-27P X 125,000 6000 Website Upgrade X 125,000 9000 Admin Bldg-Staff Accommodations & 2nd Fl Alterations X 150,000 1125 Engineering Hoagland Blvd Widending Project X 150,000 2000 Adminstration Building UPS Replacement X 150,000 6000 Email Storage - Record Retention X 160,000 1335 I/I Rehab - Toho III X 200,000 6000 DR Project X 200,000 1125 WM, SM, RM Relocation-192 & Hoagland Blvd - FDOT X 207,000 1135 Osc-Polk County Line Road 36" RM Relocation X 250,000 2000 Kiosk - Admin Building & Poinciana Area X 250,000 2000 Actiflo Rehabilitation-Full Capacity X 300,000 1135 FM Replacement - Renee Terrace X 328,500 1125 Carroll St - J Young Pkwy to Michigan Ave - County X 378,000 1125 OBT Resurfacing - US 192 - Old Dixie Hwy - FDOT X 414,000 1125 Church Street Improvements - City X 419,000 1100 Parkway WTP HSP Upgrades X 449,000 1110 South Bermuda WRF Expansion to 16 MGD X 450,000 1111 Parkway WRF-Lined Pond Replacement X 486,000 1135 Sewer Rehab - Hill Street (City of Kissimmee) X 499,000 1111 Parkway WRF-RAS/WAS Modifications & S Filter X 568,600 1125 Potable Service Connections - Toho I X 570,000 5000 MTU Upgrade X 750,000 1135 Force Main Rehab Program X 802,000 1112 Expansion - SH WRF X 841,000 1135 I/I Rehab - Toho I X 850,000 1411 Walnut WRF Decommissioning X 850,000 1435 I/I Rehab - Toho IV X 850,000 1425 Marigold Ave/Cypress Pkwy Improve - Polk County X 1,000,000 1135 Simpson Rd. & US192 FM Asbestos X 1,441,000 1113 Camelot WRF Exp & Cent Reuse Storage Facility X 1,700,000 1425 Poinciana Pkwy-Cypress Pkwy-17-92-Cent FL Exp X 1,760,000 1135 LS 57 Parallel FMs X 2,100,000 1125 Shady Lane Widening X 2,128,000 1125 I4-CR 532 Interchange Improve-Osc County & FDOT X 2,450,000 1125 I4 Osceola/Polk Line Rd - Osc Pkwy - FDOT X 3,600,000 2000 WIFIA - Accelerated Gravity Sewer Rehab Program X 11,574,000 Sub Total - Capital Project Expenditures $41,286,100

Total Operating Capital Expenditures $54,096,500

10.01.20 70 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 CAPITAL EXPENDITURES Division Budgeted Number Description New Repl Amount

Water System Development Fund Projects I 16" Water Main Jack & Bore at Ruby Street X 124,000 IV Poinciana Sys Water & Wastewater Main Ext MPs X 150,000 I Simpson Rd Ph 1 Myers Rd-Boggy Creek Rd-County X 180,000 I Parkway WTP Ion Exchange System X 203,000 I Parkway WTP HSP Upgrades X 449,000 I Process Upgrade & Expansion - Harmony WTP X 750,000 I Judge Farms Raw Water Main X 1,000,000 I Bill Beck Blvd-Osc Pkwy-Woodcrest Blvd-County X 1,114,000 I GS, FM, WM, RM, & Lift Station Upsizing X 1,595,660 IV Toho/Poinc Interconnect-Hoagland Blvd 16" WM Ext X 2,700,000 I SW WTP-Well 3, Raw WM & Additional GST X 3,803,000 Sub Total - Water System Capital Expenditures $12,068,660

Sewer System Development Fund Projects I Simpson Rd Ph 1 Myers Rd-Boggy Creek Rd-County X 97,000 IV Poinciana Sys Water & Wastewater Main Ext MPs X 150,000 I Carroll St-John Young Pkwy to Michigan Ave-County X 172,000 I FM Replacement - Renee Terrace X 328,500 I Bill Beck Blvd-Osc Pkwy-Woodcrest Blvd-County X 432,000 I South Bermuda WRF Expansion to 16 MGD X 450,000 II Harmony WRF Reuse GST & HSPs X 600,000 I Wheeler & Daniels RIBs X 750,000 I GS, FM, WM, RM, & Lift Station Upsizing X 1,332,000 Sub Total - Sewer System Capital Expenditures $4,311,500

New Items 6,025,400 Replacement & Rehab Items 48,071,100 Operating Capital Expenditures $54,096,500

Water Development Fund 12,068,660 Sewer Development Fund 4,311,500 System Development Capital Expenditures $16,380,160

Total Capital Expenditures $70,476,660

10.01.20 71 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 VEHICLE, FURNITURE, & COMPUTER CAPITAL Div Budgeted Tag Description Year No Amount Division

Replacement Vehicles WS515 Ford Explorer 2012 9100 30,000 Admin WS528 Toyota Sienna 2012 9100 30,000 Admin WS427 Toyota Highlander Hybrid 2008 9100 35,000 Admin WS468 Toyota Prius Hybrd 2010 9100 35,000 Admin WS258 Ford F650 2001 1165 110,000 Capitalized Sewer WS614 Toyota Tacoma Ext Cab 2015 5100 40,000 Customer Service WS618 Toyota Tacoma Ext Cab 2015 5100 40,000 Customer Service WS620 Toyota Tacoma 4x4 2014 5100 40,000 Customer Service WS319 Chevy Blazer 2004 2000 30,000 Engineering WS426 Ford F150 4X4 2008 2000 30,000 Engineering WS547 Ford F150 4X4 2013 2000 30,000 Engineering WS584 Ford F150 Supercb 4X4 2014 2000 30,000 Engineering WS630 Ford Escape 2015 4100 30,000 Human Resources WS447 Nissan Rogue 2009 6000 40,000 Information Tech WS501 Chev Silverado 2012 1145 35,000 Maintenance WS345 Ford Escape 2005 1145 35,000 Maintenance WS464 Chevrolet Colorado 2010 1110 40,000 S Bermuda WS579 Ford F150 2014 1110 40,000 S Bermuda WS536 Ford Explorer 4 2012 1144 35,000 SCADA WS450 Chevy Silverado 2009 1144 37,000 SCADA WS526 Ford E250 Van 2012 1144 38,000 SCADA WS473 Ford F-250 Supe 2011 1444 40,000 SCADA WS406 Ford F450 Camera Truck 2007 1135 310,000 Sewer Collection WS746 Ford F 550 CCTV Truck 2018 1135 310,000 Sewer Collection WS545 Freightliner Vac Truck 2014 1135 375,000 Sewer Collection WS514 Ford F150 2012 1125 45,000 Trans & Dist WS511 Ford F350 2012 1125 55,000 Trans & Dist WS512 Ford F350 2012 1125 55,000 Trans & Dist WS513 Ford F350 2012 1125 55,000 Trans & Dist WS516 Ford F250 4X4 2012 1125 55,000 Trans & Dist WS535 Ford Escape 2013 1100 30,000 WTP WS517 Ford F150 2012 1100 35,000 WTP WS534 Ford F150 2013 1100 35,000 WTP Sub Total - Replacement Vehicles 2,210,000

New Vehicle Request Field Truck 2021 2100 35,000 Engineering Crane Truck - F450 4x4 2021 1125 150,000 Field Services Roll Off Truck 2021 1125 200,000 Field Services 385,000 New Vehicle ‐ New Personnel LS Construction Worker 2021 1165 75,000 Maintenance System Mechanics (2) 2021 1145 160,000 Maintenance Sub Total - New Personnel Vehicles $235,000

Total Vehicles 2,830,000

10.01.20 72 TOHOPEKALIGA WATER AUTHORITY

2021 ANNUAL BUDGET

SCHEDULE 5 VEHICLE, FURNITURE, & COMPUTER CAPITAL Div Budgeted Tag Description Year No Amount Division

New Personnel - Radios LS Construction Worker 2021 1165 4,000 Maintenance System Mechanics (2) 2021 1145 8,000 Maintenance Sub Total - New Personnel Radios 12,000

New Furniture - New Personnel Contract Administrator 2021 1125 2,500 Field Services Lift Station Construction Technicians 2021 1165 2,500 Cap Labor-Sewer Permit Coordinator 2021 2100 2,500 Engineering Professional Engineer 2021 2100 2,500 Engineering Procurement Analyst 2021 3100 2,500 Business Services Budget Analyst 2021 3100 2,500 Business Services Program-Project Manager 2021 6100 2,500 Information Tech Security Network Engineer 2021 6100 2,500 Information Tech Systems Mechanics (2) 2021 1145 5,000 Maintenance Sub Total - New Personnel Furniture 25,000

New Personnel - Computers Contract Administrator 2021 1125 4,000 Field Services Lift Station Construction Technicians 2021 1165 4,000 Cap Labor-Sewer Permit Coordinator 2021 2100 1,000 Engineering Professional Engineer 2021 2100 1,000 Engineering Procurement Analyst 2021 3100 1,000 Business Services Budget Analyst 2021 3100 1,000 Business Services Program-Project Manager 2021 6100 4,000 Information Tech Security Network Engineer 2021 6100 2,000 Information Tech Systems Mechanics (2) 2021 1145 8,000 Maintenance Sub Total - New Personnel Computers 26,000

Replacement Computers Organizational Replacements 2021 6100 92,000 Information Tech Sub Total - Replacement Computers 92,000

10.01.20 73 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 74 Statistical Information

10.01.20 75 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 76 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 1

SCHEDULE OF NET POSITION (Dollars in Thousands)

For the Fiscal Year Ended September 30, 2019 with Comparative Amounts for Fiscal Years Ended September 30, 2015 through 2019 Last Five Fiscal Years

2019 2018 2017 2016 2015 ASSETS Current Assets Cash and cash equivalents $94,293 $84,861 $73,962 $52,242 $47,548 Restricted cash and cash equivalents 24,553 26,666 12,108 9,034 14,552 Accounts receivable, net 20,172 16,973 12,755 11,907 12,082 Due from other governments 203 2,540 518 226 73 Inventory 775 524 734 1,176 406

Total Current Assets $139,996 131,564 100,077 74,585 74,661

NON-CURRENT ASSETS Restricted cash and cash equivalents 58,120 61,854 43,568 42,835 31,159 Restricted investments 78,970 75,641 98,910 91,789 60,346 Restricted accounts receivable 1,368 3,964 1,003 1,339 1,368 Restricted construction deposits in escrow 320 330 1,408 2,519 4,774

Total Restricted Assets 138,778 141,789 144,889 138,482 97,647

Capital Assets Land 19,486 19,486 19,486 19,501 18,397 Water plant and equipment 391,148 372,994 365,216 354,716 337,713 Sewer plant and equipment 660,079 605,253 566,771 540,548 512,957 General plant and equipment 43,202 41,727 39,924 37,083 36,117 Construction-in-progress 56,353 42,276 29,691 21,539 23,573 Less: Accumulated depreciation (331,585) (300,047) (276,085) (247,658) (221,563)

Total Capital Assets (Net) 838,684 781,689 745,003 725,728 707,194

Deferred loss on refunding 10,956 11,582 12,208 12,834 12,189 Deferred outflows related to pensions & OPEB 4,303 1,631 1,529 2,341 1,461 Total Deferred Outflows of Resources 15,259 13,213 13,737 15,175 13,650

Total Assets and Deferrals $ 1,132,717 $ 1,068,255 $ 1,003,706 $ 953,970 $ 893,152

10.01.20 77 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 1

SCHEDULE OF NET POSITION (Dollars in Thousands)

For the Fiscal Year Ended September 30, 2019 with Comparative Amounts for Fiscal Years Ended September 30, 2015 through 2019 Last Five Fiscal Years

2019 2018 2017 2016 2015 LIABILITIES AND NET POSITION Current Liabilities Accounts payable $10,810 $21,225 $10,724 $7,036 $11,548 Accrued liabilities 640 547 481 400 232 Other liabilities 80 71 46 32 17 Contracts payable 1,824 896 214 413 679 Compensated absences payable 544 584 485 437 420 Current liabilities payable from restricted assets: Accounts payable - 2,220 1,971 965 - Contracts payable 1,386 1,665 1,223 541 283 Revenue bonds and note payable 8,601 8,404 1,175 1,365 7,123 Accrued interest payable 4,060 4,257 282 307 4,242 Deposits 10,506 10,120 7,457 5,856 2,904

Total Current Liabilities $38,451 $49,989 $24,058 $17,352 27,448

Non-Current Liabilities Compensated absences payable 1,298 1,143 1,108 1,034 961 OPEB payable 1,879 1,736 1,076 922 801 Net Pension Liability 9,019 7,422 7,495 9,457 6,277 Revenue bonds and note payables 202,407 211,008 219,412 227,662 186,932

Total Non-Current Liabilities 214,603 221,309 229,091 239,075 194,971

Total Liabilities 253,054 271,298 253,149 256,427 222,419

Deferred Inflows of Resources Deferred inflows of resources related to pensions 1,424 626 879 - 817 Deferred inflows of resources related to OPEB 60 50 - - - Total Deferred Inflows of Resources 1,484 676 879 - 817

Total Liabilities and Deferrals 254,538 271,974 254,028 256,427 223,236

Net Position Net investment in capital assets 638,632 573,859 536,624 509,535 525,328 Restricted - system development charges 135,434 122,469 110,298 92,125 92,099 Restricted - bond projects - 3,568 29,018 41,818 - Unrestricted 104,113 96,385 73,738 54,065 52,489

Total Net Position $ 878,179 $ 796,281 $ 749,678 $ 697,543 $ 669,916

10.01.20 78 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 2

SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (Dollars in Thousands) For the Fiscal Year Ended September 30, 2019 with Comparative Amounts for Fiscal Years Ended September 30, 2015 through 2019 Last Five Fiscal Years

2019 2018 2017 2016 2015

Operating Revenue Charges for services $126,799 $117,913 $110,911 $96,486 $87,150 Miscellaneous revenues 759 649 708 654 637

Total Operating Revenue 127,558 118,562 111,619 97,140 87,787

Operating Expenses Personnel services 27,433 25,537 24,323 24,697 21,002 Contracted services 10,477 8,965 8,518 10,036 7,470 Supplies and materials 5,136 4,484 4,657 4,091 4,041 Repairs and maintenance 7,605 6,784 6,688 7,006 6,068 Payments in lieu of taxes 10,800 9,990 9,478 8,264 7,456 Other services and charges 10,975 10,586 9,949 9,612 8,968 Depreciation 33,753 32,135 29,559 27,706 26,021 Amortization - - - - -

Total Operating Expenses 106,179 98,481 93,172 91,412 81,026

Operating Income 21,379 20,081 18,447 5,728 6,761

Non-Operating Revenues (Expenses) Investment income (loss) 8,832 2,281 1,695 1,424 1,263 Interest and fiscal charges expense (8,748) (9,113) (9,421) (9,308) (9,171) Other 334 (17,060) 555 410 131

Total Non-Operating Revenues (Expenses) 418 (23,892) (7,171) (7,474) (7,777)

Income/(Loss) Before Contributions 21,797 (3,811) 11,276 (1,746) (1,016)

Capital Contributions Federal, state, and local capital gains 20 725 448 - 165 Developers 60,081 50,310 40,411 29,373 21,615 Total Capital Contributions 60,101 51,035 40,859 29,373 21,780

Change in Net Position 81,898 47,224 52,135 27,627 20,764

Net Position Beginning of Year 796,281 749,678 697,543 669,916 656,583 Restatement - for Implementation of GASB 68 & 65 - (621) - - (7,431) Total Net Position - Beginning Restated 796,281 749,057 697,543 669,916 649,152

Net Position - Ending $878,179 $796,281 $749,678 $697,543 $669,916

10.01.20 79 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 3

SCHEDULE OF MAJOR CONTRACT SERVICES

For the Fiscal Year Ended September 30, 2019 CHANGES FROM YEAR TO YEAR - LAST FIVE FISCAL YEARS (Dollars in Thousands)

2019 2018 2017 2016 2015 Service Provider

City of Kissimmee$ 69 68$ 66$ 82$ $ 80

Severn Trent Environmental Services - - - - -

Kissimmee Utility Authority - - - 1,082 1,717

Total $ 69 68$ $ 66 $ 1,164 $ 1,797

10.01.20 80 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 4

SCHEDULE OF TOTAL ACTIVE EMPLOYEES BY DEPARTMENT

For the Fiscal Year Ended September 30, 2019 CHANGES FROM YEAR TO YEAR - LAST FIVE FISCAL YEARS

2019 2018 2017 2016 2015 Department

Operations: Field Services 73 73 71 67 70 Plant and Support Operations 97 97 98 95 95

Engineering Services 36 33 32 28 26

Business Services 16 16 15 15 16

Customer Service 59 60 60 51 41

Information Technology 15 15 14 12 12

Human Resources 8 8 7 8 6

Office of the General Counsel 2 1 2 2 1

Administration 13 14 13 15 16

Total 317 317 310 291 283

10.01.20 81 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 5

SCHEDULE OF HISTORICAL ANNUAL NUMBER OF RETAIL WATER

For the Fiscal Year Ended September 30, 2019 WASTEWATER & RECLAIMED WATER CUSTOMERS & USAGE - LAST FIVE FISCAL YEARS

2019 2018 2017 20161 2015 Water Service Residential Average Monthly Customers1 100,873 96,461 93,199 89,215 82,043 Average Monthly Consumption (000s) 464,681 450,455 412,215 404,663 380,303 Total Billed Usage 5,576,167 5,405,464 4,946,584 4,855,959 4,563,632 Average Monthly Use Per Customer 4,607 4,670 4,423 4,536 4,635

Commercial Average Monthly Customers1 6,925 6,704 6,740 7,540 11,167 Average Monthly Consumption (000s) 387,641 366,345 378,890 377,871 370,920 Total Billed Usage 4,651,686 4,396,134 4,546,674 4,534,448 4,451,045 Average Monthly Use Per Customer 55,977 54,646 56,215 50,115 33,216

Irrigation Service General Service Average Monthly Customers 17,201 16,957 16,636 16,460 16,251 Average Monthly Consumption (000s) 99,199 95,937 99,568 96,675 93,405 Total Billed Usage 1,190,388 1,151,245 1,194,811 1,160,094 1,120,858 Average Monthly Use Per Customer 5,767 5,658 5,985 5,873 5,748

Wastewater Service Residential Average Monthly Customers1 95,593 91,236 88,381 84,007 76,287 Average Monthly Consumption (000s) 435,995 421,377 380,652 379,958 346,883 Total Billed Usage 5,231,945 5,056,526 4,567,828 4,559,490 4,162,595 Average Monthly Use Per Customer 4,561 4,619 4,307 4,523 4,547

Commercial Average Monthly Customers1 6,129 5,945 5,832 6,809 10,533 Average Monthly Consumption (000s) 346,222 330,833 328,527 336,972 330,310 Total Billed Usage 4,154,669 3,969,996 3,942,323 4,043,664 3,963,725 Average Monthly Use Per Customer 56,489 55,649 56,332 49,489 31,360

Reclaimed Water Service General Service Average Monthly Customers 18,797 17,201 15,756 14,565 13,527 Average Monthly Consumption (000s) 531,948 444,639 386,532 332,068 298,480 Total Billed Usage 6,383,375 5,335,665 4,638,382 3,984,815 3,581,755 Average Monthly Use Per Customer 28,300 25,850 24,532 22,799 22,065 1 Short-Term Rental classification was transferred to Residential class from Commercial

10.01.20 82 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 6

SCHEDULE OF MONTHLY BILL RATE COMPARISON WITH OTHER FLORIDA MUNICIPAL UTILITY SYSTEMS For the Fiscal Year Ended September 30, 2019 with Comparative Usage At 4,000 Gallons

Water Wastewater Combined

Toho Water Authority $11.64 $30.61 $42.25

Orange County $12.79 $33.77 $46.56

City of Orlando $12.51 $39.46 $51.97

City of St. Cloud $18.88 $34.37 $53.25

Lakeland $19.01 $36.07 $55.08

Seminole County $19.14 $43.40 $62.54

10.01.20 83 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 7

SCHEDULE OF SYSTEM DEVELOPMENT CHARGES COMPARISON WITH OTHER FLORIDA MUNICIPAL UTILITY SYSTEMS For the Fiscal Year Ended September 30, 2019 with Comparative Per Equivalent Residential Connection (ERC)

Water Wastewater Combined

Toho Water Authority (1) $2,415 $3,450 $5,865

Lakeland $1,050 $1,916 $2,966

Seminole County $1,054 $2,229 $3,283

City of Orlando $1,637 $3,570 $5,207

Orange County $1,970 $3,570 $5,540

City of St. Cloud $3,041 $3,430 $6,471

Note: (1) Water $8.05 Per ERC @ 300 GPD and Wastewater $12.50Per ERC @ 276 GPD.

10.01.20 84 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 8 SCHEDULE OF TEN LARGEST WATER CUSTOMERS

For the Fiscal Year Ended September 30, 2019 Consumption Reported in 1,000 Gallons

%age of Water Customer Consumption Revenues Revenue

1 Enterprise Comm Dev Dist 435,256 $588,885 1.75%

2 Westgate Vacation Villas 229,120 439,113 1.30%

3 Holiday Inn Club Vacations Inc 181,382 356,173 1.06%

4 Opryland 144,943 278,740 0.83%

5 Quaker Oats 132,545 250,906 0.74%

6 Vacation Village at Parkway 92,069 182,375 0.54%

7 The Palms Country Club & Resort 79,353 155,662 0.46%

8 RIDA 76,126 156,154 0.46%

9 Good Samaritan Village 74,576 97,037 0.29%

10 Orange Co Utilities 60,191 78,489 0.23%

Total 1,505,561 $2,583,533 7.66%

10.01.20 85 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 9

SCHEDULE OF TEN LARGEST WASTEWATER CUSTOMERS

For the Fiscal Year Ended September 30, 2019 Consumption Reported in 1,000 Gallons

%age of Wastewater Customer Consumption Revenues Revenue

1 Enterprise Comm Dev Dist 348,936 $1,554,661 2.45%

2 Westgate Vacation Villas 221,011 $1,421,311 2.24%

3 Holiday Inn Club Vacations Inc 181,382 $1,194,782 1.88%

4 Opryland 144,943 $934,611 1.47%

5 Vacation Village at Parkway 92,069 $611,446 0.96%

6 The Palms Country Club & Resort Condo Assoc. 79,353 $522,407 0.82%

7 RIDA 70,505 $437,483 0.69%

8 Osceola Regional Medical Ctr 55,084 $354,427 0.56%

9 Dalcor Reef Club, Ltd 45,543 $317,739 0.50%

10 Blue Road, LLC 38,292 $242,587 0.38%

Total 1,277,118 $7,591,453 11.95%

10.01.20 86 TOHOPEKALIGA WATER AUTHORITY Osceola County, Florida Schedule 10

SCHEDULE OF PRINCIPAL PORTION OF OUTSTANDING DEBT (Dollars in Thousands) PER CUSTOMER BILLED SERVICE

For the Fiscal Year Ended September 30, 2019

Total Total Billed Per Billed Fiscal Year Revenue Bonds Revenue Notes State Loans Outstanding Services Service

2019 $183,990 $27,018 $0 $211,008 249,868 $844 2018 $190,630 $28,782 $0 $219,412 238,418 $920 2017 $190,630 $29,957 $0 $220,587 229,067 $963 2016 $196,990 $32,037 $0 $229,027 221,778 $1,033 2015 $120,550 $73,505 $0 $194,055 213,330 $910 2014 $125,250 $74,550 $0 $199,800 205,674 $971 2013 $129,430 $76,655 $0 $206,085 198,897 $1,036 2012 $100,265 $116,525 $0 $216,790 192,879 $1,124 2011 $190,275 $25,440 $0 $215,715 189,054 $1,141 2010 $191,060 $26,000 $73 $217,133 182,842 $1,188 2009 $194,995 $1,000 $0 $195,995 179,154 $1,094 2008 $198,975 $0 $0 $198,975 179,154 $1,111 2007 $202,040 $0 $0 $202,040 177,392 $1,139 2006 $112,630 $0 $0 $112,630 120,453 $935 2005 $115,550 $0 $0 $115,550 112,533 $1,027

10.01.20 87 TOHOPEKALIGA WATER AUTHORITY 2021 OPERATING BUDGET

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10.01.20 88 Osceola County Data

10.01.20 89 TOHOPEKALIGA WATER AUTHORITY 2020 OPERATING BUDGET

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10.01.20 90 HISTORY

Formed on May 12th, 1887 from portions of Orange County and Brevard County, Osceola County became Florida's 40th county. This area was a transportation hub in the late nineteenth century for riverboats and railroad. It readily began a cattle, sugar, and lumber-based economy. Osceola County derives its name from Billy Powell, son of British trader William Powell and his Creek wife Polly Copinger. Born in Alabama in 1804, Powell adopted the name Osceola, which means "black drink crier", at a tribal ceremony around 1820. Osceola was never a "Chief," but was a feared and respected leader nonetheless. Osceola County's 1,506 square miles include the cities of Kissimmee (incorporated in 1883) and St. Cloud (incorporated in 1911), as well as numerous communities. The city of Kissimmee has always had a strong historical association with the Florida cattle frontier, and the city of St. Cloud has roots that trace back to a northern land baron who began a sugar plantation in 1881. Osceola County's communities include Narcoossee & Kenansville. Narcoossee is one of Osceola County's oldest settlements and was home to numerous British immigrants who brought with them a love for the sport of polo. In fact, a team was created in 1888 and grew to more than 100 members just two years later. Kenansville is located in southeast Osceola County and was named for railroad mogul Henry Flagler's third wife, Mary Lily Kenan Flagler, once he donated five acres and $6,000 to build a school house in 1911.

CITIES & GEOGRAPHY

Osceola County was created in 1887. Osceola County is a 1,506 square mile area which includes 1,322 land square miles and 184 water square miles (12.24% of the state of Florida). The county sits on the south/central boundary of the Central Florida Region and the Greater Metropolitan Area. The City of Kissimmee, the County Seat, is 18 miles due south of Orlando. Osceola’s only other incorporated City, St. Cloud, is 9 miles east of Kissimmee, and approximately 45 miles west of the City of Melbourne on the Atlantic Coast.

10.01.20 91

Beyond this northwest quadrant and to the south and east with the exception of a few very small, rural towns, ranch lands and undeveloped prairie, woods and marsh dominate the County. These large regions include the Mormon Church owned Desert Ranches and a number of other large, privately operated ranch and agricultural lands. Also included are the State of Florida's wildlife management areas and preserves. As the "headwaters" of the South Florida Water Management district and the Lake Okeechobee/ Florida everglades ecosystem, Osceola County is bounded by the Kissimmee River, is crossed by a number of partially accessible creeks, and is home to the Kissimmee Chain-of-Lakes, that includes some of the State’s largest and finest fishing and recreational attractions. An urban and urbanizing area in the northwest quadrant of the County dominates Osceola County's geography. This area is adjoining to Polk and Orange County and includes most of Osceola's population. It includes the incorporated areas of Kissimmee and St. Cloud, the unincorporated communities of Poinciana and Buenaventura Lakes.

CLIMATE

The average temperature of Osceola County is 72.69°F, which is about the same as the Florida average temperature of 71.80°F and is much higher than the national average temperature of 54.45°F. The average annual precipitation of 51 inches is slightly under the state average of 54 inches of rain. The monthly average humidity level is 76%, and is in line with the state average of 77%.

ECONOMIC INFORMATION

Osceola's economic base is dominated by tourism, serving as a "gateway" to Disney World and other Central Florida attractions. The area's historical investments in ranching and citrus are still very strong, while light industry and service enterprises are growing due to Osceola's transportation advantages and proximity to the Greater Orlando area.

10.01.20 92 GOVERNMENT

Osceola County is a Charter county, and an administrative subdivision of the State of Florida. Osceola County Government is governed by three sets of elected officials, each of which independently directs separate branches of County Government. These include: the five- member County Commission which is responsible for funding the budgets of all Osceola County Government, including the independently elected Constitutional Officers and Judicial Officers, as well as the Commission's own departments.

INFRASTRUTURE

Kissimmee’s Gateway Airport provides service to business and leisure travelers and is strategically set from major highways, as well as being the closest general aviation facility to Walt Disney World, SeaWorld, Universal, and the Orange County Convention Center. The two runways can accommodate all corporate aircraft and many commercial airliners. Orlando’s first commuter rail transit system, SunRail is a light rail that stretches thirty-one miles from Debary, the north end of the train’s route, to south Orange County near the Orlando International Airport. The second phase, which is close to completion, will extend the line further north into Volusia County and south into Osceola County, which will include five more stations that cover an additional thirty miles. Other rail projects are on the horizon as the Brightline train will use the existing Florida East Coast Railway and will travel from Cocoa to Orlando. An additional route, the Miami to Orlando train, is scheduled for service in 2019. Roadways have always been the main focus of the region’s infrastructure plans to improve the local economy and enhance livability. The area’s main thoroughfare, Interstate four, is getting a twenty- one mile improvement.

10.01.20 93 BUSINESS COMMUNITY OVERVIEW

Employment by Industry

3.2% 1.9% 3.3% Leisure & Hospitality 3.5% Professional & Business Services Education & Health Services 20.4% 3.7% Retail Trade

5.7% Total Government Construction 6.6% Financial Activities Manufacturing 18.7% Wholesale Trade 9.8% Other Services Transportation, Warehousing, & Utilities 11.2% 11.9% Information Mining & Logging

Employees by Company Stage Companies are classified into stages based on the number of people they employ. Stage two companies employ anywhere from 10 to 99 people and are the most likely to expand. Almost as many people in Orlando are employed in stage-two companies as there are in stage-one or startup companies.

1,600,000

1,400,000 210,000 1,200,000 201,500 198,000 268,800 Four (500+) 1,000,000 256,100 Three (100 to 499) 242,400 800,000 Two (10 to 99) 449,400 One (2 to 9) 600,000 436,800 406,800 Self Employed

400,000 NUMBER EMPLOYEES OF NUMBER 453,600 200,000 338,400 390,000

0 2016 2017 2018

10.01.20 94 Fortune 1000 Companies Headquartered in Central Florida

Company Total Headcount Industry Publix Super Markets, Inc. 193,000 Retail Darden Restaurant, Inc. 178,729 Food Service Harris Corporation 17,000 Aerospace & Defense Wyndham Destinations, Inc. 39,200 Hospitality Tupperware Brands Corporation 12,000 Retail Marriot Vacations Worldwide Corporation 11,000 Hospitality

Business Owner Characteristics

Gender of Owner Percent Share (2016) Number of male-owned firms with paid employees 56.7% Number of female-owned firms with paid employees 21.5% Number of equally male-/female-owned firms with paid employees 14.4%

Minority Owners Number of minority- owned firms with paid employees 23.5% Number of nonminority-owned firms with paid employees 66.8%

Business Type

Ownership Type Number of Businesses Percent Share (2019)

Total 344,756 100.00% Private 327,580 95.00% Nonprofit 9,538 2.70% Public Sector 1,895 0.50% Public 43 0.01%

Sources: Florida Department of Economic Opportunity - Current Employment Statistics Sept. 2019, U.S. Census Bureau - 2016 Annual Survey of Entrepreneurs, Dun & Bradstreet 2019, YourEconomy.org 2019, Gazzel.AI 2019 Note: Sum of detail may not equal total due to rounding.

10.01.20 95 COMMERCIAL REAL ESTATE

Industrial Market Summary* Office Market Summary*

Total Inventory 6.84 million sq. ft. Total Inventory 5.57 million sq. ft. Under Construction 0 sq. ft. Under Construction 214,000 sq. ft. Vacancy Rate 1.5% Vacancy Rate 5.1% Average Asking Rate $8.61/sq. ft. Average Asking Rate (Class A) $24.12/sq. ft. Net Absorption (YTD) 132,097 sq. ft. Net Absorption (YTD) 63,500 sq. ft.

Source: CoStar - 4th Quarter 2019; only includes industrial & flex properties larger Source: CoStar - 4th Quarter 2019; only includes office properties larger than 5,000 sq. ft. than 10,000 sq. ft. INFRASTRUCTURE

Air Kissimmee Gateway Airport is the closest general aviation airport to the Orlando/Orange County Convention Center, the concentration of convention

hotel properties in the southwest Orlando metro area and the region’s 17 95 many attractions. The airport can accommodate up to Boeing 737 Business Jet aircraft, as well as Airbus 319 and A320 aircraft. The main runway has an FAA Category I precision 441 Lake County 4

approach (ILS) for all weather landings. The air traffic 429 1 control tower is staffed 7 a.m. to 10 p.m. daily. The airport 453

has a variety of sites for both aviation and commercial/light 27 417 17 Seminole 441 industrial development, with eligible companies having County access to the city’s Aerospace Advancement Initiative program which provides robust economic development 50 91 incentives. 408 408 50 City of 429 Orlando 17 417 Rail 528

27 4 Orange County Orlando’s first commuter rail transit system, SunRail is a Port Canaveral $800 million investment that stretches from Debary, the north end of the Orlando region, to south Osceola County 17 Osceola County in Poinciana. The northern expansion will extend the line further in north in Volusia County linking DeBary to Deland. There is also 192

the Virgin Trains, a $3.5 billion investment, which provides rapid intercity Port Tampa Bay 91 passenger rail service connecting Orlando International Airport and Miami with stations in Fort Lauderdale and West Palm Beach. Interstate Roads 441 Toll Road The core of the Orlando region’s unmatched infrastructure is strong roadways, providing invaluable connectivity to business. To improve Future Toll Road our economy and enhance livability even more, the region’s main Highway thoroughfare, Interstate 4, is getting a 21-mile makeover, a $2.3 Railroad 60 billion investment that will connect the Gulf of Mexico to the Virgin Train USA Atlantic Ocean. SunRail Station LIVE & PLAY Airport

Housing Cost of Living Index (COLI)

Jan Jan Composite Grocery % Change Housing Transportation 2019 2018 Index Items Median Orlando $216,000 $205,000 5.4% 99.4 117.4 90.9 94.8 Sale Price MSA

Source: Orlando Regional Realtors Association - February 2019 Source: The Council for Community & Economic Research (C2ER) - 2018 Annual Average; numbers less than 100 are below the national average

10.01.20 96 TAXES & INCENTIVES

Taxes/Finances County Incentives Tax Rate Committed to diversifying its economy and ensuring the future of its citizens, Osceola County has formed Personal Income Tax None partnerships with the State of Florida and other agencies Personal Property (millage rate) 13.8904-19.0032 to create and participate in many aggressive, targeted Corporate Income Tax 4.458% industry incentive programs. Sales Tax 7% Incentive Packages include: Source: Osceola County Property Appraiser & Tax Office - 2019 • Property Tax Abatement • 5-Day, Fast-Track Permitting • Manufacturing Equipment Investment Refund

State Incentives Industry-Specific Incentives Qualified Target Industry Tax Refund (QTI) is available for companies that create high wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. Pre-approved applicants receive tax refunds of $3,000 per net new Florida full-time equivalent job created, with Workforce Training Incentives additional monies available for meeting certain additional Quick Response Training provides grant funding for wage thresholds or locating in certain targeted economic customized training for new or expanding businesses. The zones. No more than 25 percent of the total refund business-friendly program is flexible to respond quickly to approved may be taken in any single fiscal year. corporate training objectives. Once approved, the business chooses what training is needed, who provides it, and how Capital Investment Tax Credit (CITC) is an annual credit, it is provided. provided for up to 20 years, against Florida corporate income tax. Eligible projects are those in designated Incumbent Worker Training Program (IWT) is a program high-impact portions creating a minimum of 100 jobs available to all Florida businesses that have been in and investing at least $25 million in eligible capital costs. operation for at least one year prior to application and Eligible capital costs include all expenses incurred in require skills upgrade training for existing employees. the acquisition, construction, installation and equipping Priority is given to businesses in targeted industries and of a project from the beginning of construction to the certain targeted economic zones. commencement of operations. Infrastructure Incentives High Impact Performance Incentive Grant (HIPI) is a Economic Development Transportation Fund or “Road negotiated grant used to attract and grow major high impact Fund” is designed to alleviate transportation problems facilities creating at least 50 new full-time equivalent jobs that adversely impact a specific company’s location (25 if an R&D facility) and making a cumulative investment or expansion decision. The award is made to the local in the state of at least $50 million ($25 million if an R&D government on behalf of a specific business for public facility) in a three-year period. transportation improvements.

ABOUT THE ORLANDO ECONOMIC PARTNERSHIP The Orlando Economic Partnership works to advance broad-based prosperity by strengthening Orlando’s economy, amplifying Orlando’s story, championing regional priorities, empowering community leaders and building a brilliant region. These five foundational objectives serve to improve the region’s competitiveness while responding to the needs of communities, residents and businesses.

Orlando Economic Partnership

Vice President, Business Development [email protected] C/ 407.587.6030

10.01.20 97 Labor Market Unemployment Rate, Orlando MSA Seasonally Adjusted 22 RECESSION

20

August 2020 18 United States: 8.4% Orlando MSA: 11.0% 16

14

12

10

8

6

4

2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Orlando MSA United States

orlando.org Source: U.S. Department of Labor, Bureau of Labor Statistics

10.01.20 98 Osceola County

Florida's 17th most populous county with 1.8% of Florida's population

Population Real Gross Domestic Product Real GDP Census Population Osceola County Florida (Thousands of Chained 2012 Dollars) Osceola County Florida 1980 Census 49,287 9,746,961 2015 GDP 7,709,041 839,124,321 1990 Census 107,728 12,938,071 Percent of the State 0.9% % change 1980-90 118.6% 32.7% 2016 GDP 7,896,106 866,730,997 2000 Census 172,493 15,982,824 Percent of the State 0.9% % change 1990-00 60.1% 23.5% 2017 GDP 8,143,986 896,117,037 2010 Census 268,685 18,801,332 Percent of the State 0.9% % change 2000-10 55.8% 17.6% 2018 GDP 8,374,889 924,873,329 Age Percent of the State 0.9% % Under 18 years of age 26.2% 21.3% % 65 years of age and over 11.0% 17.3% Housing Race & Ethnicity % White alone 71.0% 75.0% Housing Counts Osceola County Florida % Black or African American alone 11.3% 16.0% Housing units, 2000 Census 72,293 7,302,947 % Hispanic or Latino (of any race) 45.5% 22.5% Occupied 60,977 6,337,929 Owner-occupied 41,305 4,441,799 Estimates and Projections Renter-occupied 19,672 1,896,130 2019 Estimate 370,552 21,208,589 Vacant 11,316 965,018 % change 2010-19 37.9% 12.8% Housing units, 2010 Census 128,170 8,989,580 2020 Estimate 387,055 21,596,068 Occupied 90,603 7,420,802 % change 2019-20 4.5% 1.8% Owner-occupied 58,541 4,998,979 Based on 2019 Estimate Renter-occupied 32,062 2,421,823 2025 452,077 23,130,870 Vacant 37,567 1,568,778 2030 510,236 24,426,178 2035 558,939 25,497,950 Units Permitted 2040 602,162 26,428,726 1990 3,867 126,384 2045 642,615 27,266,909 2000 5,035 155,269 2019 Median Age 36.7 41.7 2010 892 38,679 2011 785 42,360 Density 2012 2,495 64,810 Persons per square mile 2013 2,731 86,752 2000 130.5 296.4 2014 3,414 84,075 2010 202.4 350.6 2015 6,760 109,924 2019 279.1 399.7 2016 4,297 116,240 2017 4,785 122,719 Population Characteristics 2018 9,759 144,427 Osceola County Florida 2019 7,937 154,302 Language spoken at home other than English Persons aged 5 and over 50.0% 29.1% Place of birth Foreign born 20.0% 20.5% Veteran status Civilian population 18 and over 6.5% 8.9%

Households and Family Households Residence 1 Year Ago Households Osceola County Florida Persons aged 1 and over Osceola County Florida Total households, 2000 Census 60,977 6,338,075 Same house 84.5% 84.3% Family households, 2000 Census 45,077 4,210,760 Different house in the U.S. 13.0% 14.6% % with own children under 18 49.3% 42.3% Same county in Florida 6.8% 8.7% Total households, 2010 Census 90,603 7,420,802 Different county in Florida 3.9% 3.1% Family households, 2010 Census 68,547 4,835,475 Different county in another state 2.3% 2.8% % with own children under 18 47.6% 40.0% Abroad 2.4% 1.1% Average Household Size, 2010 Census 2.93 2.48 Average Family Size, 2010 Census 3.30 3.01

According to Census definitions, a household includes all of the people who occupy a housing unit. The occupants may be a single family, one person living alone, two or more families living together, or any other group of related or unrelated people who share living quarters. A family includes a householder and one or more other people living in the same household who are related to the householder by birth, marriage, or adoption. Census counts may be corrected for Census Count Question Resolution (CQR).

10.01.20 99 Osceola County Page 2

Employment and Labor Force Number of Establishments Percent of All Establishments 2019 preliminary Osceola County Florida 2019 preliminary Osceola County Florida All industries 7,759 728,687 All industries 7,759 728,687 Natural Resource & Mining 41 5,301 Natural Resource & Mining 0.5% 0.7% Construction 1,004 75,725 Construction 12.9% 10.4% Manufacturing 141 20,782 Manufacturing 1.8% 2.9% Trade, Transportation and Utilities 1,533 140,766 Trade, Transportation and Utilities 19.8% 19.3% Information 98 11,897 Information 1.3% 1.6% Financial Activities 896 77,987 Financial Activities 11.5% 10.7% Professional & Business Services 1,359 174,242 Professional & Business Services 17.5% 23.9% Education & Health Services 898 77,515 Education & Health Services 11.6% 10.6% Leisure and Hospitality 885 59,068 Leisure and Hospitality 11.4% 8.1% Other Services 625 57,596 Other Services 8.1% 7.9% Government 56 6,044 Government 0.7% 0.8%

Average Annual Employment, Average Annual Wage % of All Industries, 2019 preliminary Osceola County Florida 2019 preliminary Osceola County Florida All industries 99,576 8,878,680 All industries $38,807 $51,761 Natural Resource & Mining 0.3% 0.8% Natural Resource & Mining $38,454 $35,649 Construction 6.8% 6.3% Construction $46,137 $52,926 Manufacturing 1.8% 4.3% Manufacturing $50,066 $63,883 Trade, Transportation and Utilities 20.4% 20.3% Trade, Transportation and Utilities $30,115 $46,237 Information 0.7% 1.6% Information $66,725 $86,109 Financial Activities 4.3% 6.6% Financial Activities $45,370 $77,030 Professional & Business Services 12.4% 15.7% Professional & Business Services $49,585 $63,747 Education & Health Services 15.8% 14.9% Education & Health Services $48,041 $52,050 Leisure and Hospitality 21.4% 14.2% Leisure and Hospitality $23,710 $26,681 Other Services 2.4% 3.2% Other Services $33,488 $37,972 Government 13.7% 12.1% Government $47,290 $55,897 Industries may not add to the total due to confidentiality and unclassified.

Labor Force as Percent of Population Aged 18 and Older Osceola County Florida Unemployment Rate Osceola County Florida 1990 73.5% 64.3% 1990 4.9% 6.1% 2000 70.9% 63.7% 2000 3.3% 3.7% 2010 69.3% 62.2% 2010 12.5% 11.1% 2019 65.9% 61.2% 2019 3.3% 3.1%

Income and Financial Health

Personal Income ($000s) Osceola County Florida Per Capita Personal Income Osceola County Florida 1990 $1,660,321 $257,571,430 1990 $15,050 $19,763 2000 $3,596,108 $472,238,563 2000 $20,650 $29,428 2010 $7,147,836 $725,074,023 2010 $26,489 $38,475 2011 $7,773,694 $764,633,664 2011 $27,899 $40,131 % change 2010-11 8.8% 5.5% % change 2010-11 5.3% 4.3% 2012 $8,003,851 $793,428,830 2012 $27,707 $41,115 % change 2011-12 3.0% 3.8% % change 2011-12 -0.7% 2.5% 2013 $8,356,566 $795,425,004 2013 $27,926 $40,696 % change 2012-13 4.4% 0.3% % change 2012-13 0.8% -1.0% 2014 $8,949,132 $856,161,773 2014 $28,771 $43,140 % change 2013-14 7.1% 7.6% % change 2013-14 3.0% 6.0% 2015 $9,798,998 $914,928,403 2015 $30,268 $45,273 % change 2014-15 9.5% 6.9% % change 2014-15 5.2% 4.9% 2016 $10,584,694 $949,717,988 2016 $31,296 $46,073 % change 2015-16 8.0% 3.8% % change 2015-16 3.4% 1.8% 2017 $11,438,134 $1,016,818,999 2017 $32,346 $48,504 % change 2016-17 8.1% 7.1% % change 2016-17 3.4% 5.3% 2018 $12,560,543 $1,082,702,187 2018 $34,090 $50,964 % change 2017-18 9.8% 6.5% % change 2017-18 5.4% 5.1% 2019 $13,248,144 $1,125,984,012 2019 $35,258 $52,426 % change 2018-19 5.5% 4.0% % change 2018-19 3.4% 2.9%

Earnings by Place of Work ($000s) Median Income 1990 $896,419 $161,135,722 Median Household Income $50,063 $53,267 2000 $1,853,729 $308,751,767 Median Family Income $55,221 $64,312 2010 $3,506,509 $438,991,235 2011 $3,835,309 $450,502,115 Percent in Poverty, 2018 % change 2010-11 9.4% 2.6% All ages in poverty 13.4% 13.7% 2012 $3,946,224 $468,412,894 Under age 18 in poverty 20.2% 20.0% % change 2011-12 2.9% 4.0% Related children age 5-17 in families in poverty 19.9% 18.8% 2013 $4,117,582 $482,900,406 % change 2012-13 Personal Bankruptcy Filing Rate 4.3% 3.1% (per 1,000 population) Osceola County Florida 2014 $4,389,700 $512,381,351 12-Month Period Ending Jun. 30, 2019 2.92 2.07 % change 2013-14 6.6% 6.1% 12-Month Period Ending Jun. 30, 2020 2.73 1.89 2015 $4,748,438 $544,423,234 State Rank 1 NA % change 2014-15 8.2% 6.3% NonBusiness Chapter 7 & Chapter 13 2016 $4,953,127 $568,848,341 % change 2015-16 4.3% 4.5% Health Insurance Status 2017 $5,287,155 $602,210,803 % change 2016-17 6.7% 5.9% Percent Insured by Age Group Osceola County Florida 2018 $5,679,971 $639,710,580 Under 65 years 84.9% 83.9% % change 2017-18 7.4% 6.2% Under 19 years 92.8% 92.4% 2019 $6,082,112 $672,454,824 18 to 64 years 81.7% 80.8% % change 2018-19 7.1% 5.1%

10.01.20 100 Osceola County Page 3

Reported County Government Revenues and Expenditures

Revenue 2017-18 Osceola County Florida* Expenditures 2017-18 Osceola County Florida* Total - All Revenue Account Codes Total - All Expenditure Account Codes ($000s) $773,245.4 $44,214,365.8 ($000s) $726,693.94 $41,792,449.68 Per Capita $ $2,193.63 $2,223.20 Per Capita $ $2,061.57 $2,101.42 % of Total 100.0% 100.0% % of Total 100.0% 100.0% Taxes General Government Services** ($000s) $309,192.6 $14,725,283.7 ($000s) $147,663.93 $7,105,044.04 Per Capita $ $877.15 $740.42 Per Capita $ $418.91 $357.26 % of Total 40.0% 33.3% % of Total 20.3% 17.0% Permits, Fee, and Special Assessments Public Safety ($000s) $94,657.9 $2,064,228.9 ($000s) $219,445.36 $10,202,428.55 Per Capita $ $268.54 $103.79 Per Capita $ $622.55 $513.00 % of Total 12.2% 4.7% % of Total 30.2% 24.4% Intergovernmental Revenues Physical Environment ($000s) $82,158.1 $4,552,371.7 ($000s) $19,397.82 $4,910,992.05 Per Capita $ $233.08 $228.90 Per Capita $ $55.03 $246.94 % of Total 10.6% 10.3% % of Total 2.7% 11.8% Charges for Services Transportation ($000s) $102,186.1 $13,745,670.4 ($000s) $83,685.34 $5,056,604.18 Per Capita $ $289.89 $691.16 Per Capita $ $237.41 $254.26 % of Total 13.2% 31.1% % of Total 11.5% 12.1% Judgments, Fines, and Forfeits Economic Environment ($000s) $2,543.2 $198,680.9 ($000s) $54,276.90 $1,566,748.75 Per Capita $ $7.21 $9.99 Per Capita $ $153.98 $78.78 % of Total 0.3% 0.4% % of Total 7.5% 3.7% Miscellaneous Revenues Human Services ($000s) $33,111.8 $1,189,350.3 ($000s) $16,570.88 $3,545,609.16 Per Capita $ $93.94 $59.80 Per Capita $ $47.01 $178.28 % of Total 4.3% 2.7% % of Total 2.3% 8.5% Other Sources Culture / Recreation ($000s) $149,395.6 $7,738,780.0 ($000s) $51,290.35 $1,704,980.28 Per Capita $ $423.82 $389.12 Per Capita $ $145.51 $85.73 % of Total 19.3% 17.5% % of Total 7.1% 4.1% Other Uses and Non-Operating ($000s) $112,899.18 $6,807,083.14 * All County Governments Except Duval - The consolidated City of Jacksonville / Duval County Per Capita $ $320.28 $342.28 figures are included in municipal totals rather than county government totals. % of Total 15.5% 16.3% Court-Related Expenditures ** (Not Court-Related) ($000s) $21,464.19 $892,959.54 Per Capita $ $60.89 $44.90 % of Total 3.0% 2.1%

Quality of Life

Crime Osceola County Florida Workers Aged 16 and Over Osceola County Florida Crime rate, 2019 (index crimes per 100,000 population) 2,212.4 2,551.1 Place of Work in Florida Admissions to prison FY 2018-19 438 28,782 Worked outside county of residence 51.2% 17.7% Admissions to prison per 100,000 Travel Time to Work population FY 2018-19 118.2 135.7 Mean travel time to work (minutes) 32.8 27.4

State Infrastructure State and Local Taxation

Transportation Osceola County Florida 2019 Ad Valorem Millage Rates Osceola County State Highway County-Wide Not County-Wide* Centerline Miles 202.7 12,128.1 County 6.8858 0.8638 Lane Miles 762.2 45,030.3 School 6.2400 State Bridges Municipal 1.0286 Number 145 7,044 Special Districts 0.3000 0.2806 *MSTU included in Not County-Wide "County" category State Facilities Buildings/Facilities (min. 300 Square Feet) Education Number 47 9,630 Public Education Schools Osceola County Square Footage 154,569 66,989,245 Traditional Setting (2019-20) School District Florida Total (state total includes special districts) 74 3,721 Conservation Land (land acres only) Elementary 29 1,878 State-Owned (includes partially-owned) 123,874 5,383,024 Middle 10 575 % of Total Conservation Land (CL) 70.0% 51.6% Senior High 17 713 % of Total Area Land 14.6% 15.7% Combination 18 555 % of Florida State-Owned CL 2.3% Educational attainment State-Managed 157,265 5,486,474 Persons aged 25 and older Osceola County Florida % of Total Conservation Land (CL) 88.8% 52.6% % HS graduate or higher 86.8% 88.0% % of Total Area Land 18.5% 16.0% % bachelor's degree or higher 20.5% 29.2%29.22299 % % of Florida State-Managed CL 2.9%

Prepared by: Florida Legislature Office of Economic and Demographic Research 111 W. Madison Street, Suite 574 Tallahassee, FL 32399-6588 (850) 487-1402 http://edr.state.fl.us November 2020

10.01.20 101 OSCEOLA COUNTY

KISSIMMEE

ST. CLOUD

Legend

City/County Boundary Interstate US Highway State and County

LAKE SEMINOLE

ORANGE

OSCEOLA

06.26.17 138 10.01.20 102 Glossary

10.01.20 103 TOHOPEKALIGA WATER AUTHORITY 2020 OPERATING BUDGET

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10.01.20 104 GLOSSARY

Biochemical Oxygen Demand (BOD) A chemical testing procedure for determining the uptake rate of dissolved oxygen by the biological organisms in a body of water. It is widely used as an indication of the quality of water.

Bond Is a promise to repay borrowed money by a specific date in the future including specific interest on the amount borrowed at predetermined intervals during the agreed term.

Capital Budget The Authority's plan for capital expenditures during a one‐year period.

Capital Expenditure An expenditure of $5,000 or more that is used to purchase or improve an asset with a useful life of one year or more.

Collection System That portion of the Authority's pipeline system that collects wastewater flow from the member agencies and transports it to the treatment plant.

Connection Fee The connection fee is referred to as a system development fee or capacity charge and is a one‐time fee paid at the time of connection to the system. The fee recovers a proportional share of capital costs incurred to provide service capacity for the new water & wastewater customers.

Debt Service Principal and interest payments on borrowed money

Debt Service Coverage Ratio of annual debt service relative to net revenues

Equivalent Residential Unit (ERU) Used to set assigned water & wastewater capacity rates based on the amount of water & wastewater generated from an average, single‐family residence, or ERU. Connections and ERUs may be used interchangeably to reference the number of single‐family households in the system or connecting to the system at any given time.

Fiscal Year (FY) The time frame in which the budget applies. This period is from October 1st through September 30th.

Full‐Time Equivalent (FTE) A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equaling 2,080 hours of work per year with the full‐ time equivalent of one position; thus, one position would have an FTE of 1.

10.01.20 105 GLOSSARY

Fund An independent fiscal and accounting entity with a self‐balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives.

Fund Balance The excess of an entity’s assets over its liabilities. A negative fund balance is sometimes called a deficit.

Generally Accepted Accounting Uniform minimum standards of, and guidelines for external Principles (GAAP) financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board (GASB) pronouncements and Financial Accounting Standards Board (FASB) pronouncements. GAAP provides a standard by which to measure financial presentations.

Geographic Information System An organized collection of computer hardware, software and (GIS) geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information.

GFOA Government Finance Officers Association

Inflow & Infiltration (I&I) A term used to describe the ways that groundwater and storm water enter into a sewer system. Inflow is storm water that enters into sanitary sewer systems and point of direct connection to the system. Infiltration is groundwater that enters sanitary sewer systems through cracks and/or leaks in the sanitary sewer pipes

Interlocal agreement A formal legal agreement between two or more public agencies that shows a common power and where the organizations want to jointly implement programs, build facilities, or deliver services. Officials from those public agencies formally approve a cooperative arrangement.

10.01.20 106 GLOSSARY

Internal Control a plan of organization for purchasing, accounting, and financial activities which, among other things, provides that:

 The duties of employees are subdivided so that no single employee handles a financial transaction from beginning to end  Proper authorizations from specific responsible officials are obtained before key steps in the processing of transactions are completed  Records and procedures are arranged appropriately to facilitate effective control

Key Performance Indicators These are used to evaluate divisions effectiveness and efficiency and if they are achieving the stated objectives and goals for the Authority.

Lift Station A pumping operation, usually located a long distance from the treatment plant that provides for the lifting and conveyance of sewage through the force main to gravity flow points. Also known as a pump station.

Master plan A long‐term plan which outlines and discusses the Authority's operations and capital plan for the period in review.

MGD Million gallons per day

OPEB Other post-employment benefits.

Operating Budget The Authority's plan for operating and maintenance expenses during a one‐year period.

Purchase Order A document issued to authorize a vendor or consultant to deliver specified merchandise or render a specified service for a stated estimated price.

Reclaimed Water Effluent water which has been treated and reused for irrigating purposes.

Reserve An account used to indicate that a portion of fund equity or (Fund Balance) is legally restricted for a specific purpose or not available for appropriation and subsequent spending.

Revenue Income generated by assessments, investments, connection fees, stand‐by fees, and user charges.

Revenue Bonds The payment for which, the future revenues of the issuing organization are pledged.

10.01.20 107 GLOSSARY

Revenue Requirements Amount of revenue required to cover operating and capital costs. Operating costs are usually routine and periodic costs incurred to provide service on an ongoing basis. Capital costs relate to capital items such as equipment or facilities that provide benefits over multiple years.

SCADA Supervisory Control and Data Acquisition (SCADA) is an automated system that uses programmable logic controls to monitor and control treatment processes and pump stations.

Sludge Refers to the residual, semi‐solid material left from industrial wastewater or sewage treatment processes.

Solids The material removed from sludge as grit, sand or debris

Transmission System That portion of the Authority's pipeline system that transmits potable water flow from the water treatment plants and transports it to the end users.

User Rates & Fees The rate charged per equivalent dwelling unit. This rate is set by the Authority and based on its revenue requirements and cost of providing service.

Wastewater Comprised of liquid waste discharged by domestic residences, commercial properties, industry, and/or agriculture. In the most common usage, it refers to the municipal wastewater that contains a broad spectrum of contaminants resulting from the mixing of wastewaters from different sources.

Wastewater Flow Flow from residential and commercial units connected to the sewer system.

Wastewater Infrastructure The infrastructure, including pipelines, drains, manholes, and other system facilities used to convey and treat sewage.

Water Potable water for residential & commercial customers used for drinking, industry or medicine.

Water Flow Flow to residential and commercial units connected to the water system.

Water Reclamation Facility (WRF) Treatment facility that removes the majority of the contaminants from wastewater or sewage and produces both a liquid effluent suitable for disposal to the natural environment and a sludge

Water Treatment Plant (WTP) Treatment facility in which makes water more acceptable for end- use, which may be drinking, industry, or medicine.

10.01.20 108 GLOSSARY

Listing of Abbreviations AM Asset Management AMR Automatic Meter Reading AWS Alternative Water Supply BOD Biochemical Oxygen Demand CIS Customer Information System COK City of Kissimmee CFWI Central Florida Water Initiative CW Camelot West DSC Debt Service Coverage ECFS East Central Florida Services ENRCCI Engineering News Record Construction Cost Index ERP Environmental Resource Permit ERU Equivalent Residential Unit FDOT Florida Department of Transportation FDEP Florida Department of Environmental Protection FY Fiscal Year FTE Full-Time Equivalent GAAP Generally Accepted Accounting Principles GIS Geographic Information System GFOA Government Finance Officers Association HR Human Resources I&I Inflow & Infiltration IPR Indirect Potable Reuse KPI Key Performance Indicator KUA Kissimmee Utility Authority LS Lift Station MG Million Gallons MGD Million Gallons Day NB North Bermuda NW Northwest PB Peabody PILOT Payment in Lieu of Taxes PW Parkway OPEB Other Post-Employment Benefits R&R Renewal & Replacement RIBS Rapid Infiltration Basin System RTU Radio Transmission Unit SCADA Supervisory Control & Data Acquisition SDC System Development Charge SB South Bermuda SH Sandhill SM Sewer Main SSO Single Sign On SW Southwest SWWMD Southwest Water Management District TAP Toho Assistance Program TWA Toho Water Authority WM Water Main WIFIA Water Infrastructure Financing & Innovation Authority WRF Water Reclamation Facility WS Water/Sewer WTP Water Treatment Plant WUP Water Use Permit

10.01.20 109 TOHOPEKALIGA WATER AUTHORITY 2020 OPERATING BUDGET

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10.01.20 110