FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

SPECIAL BOARD MEETING held at

FAIRBANKS RANCH CLUBHOUSE 17651 CIRCA DEL NORTE

RANCHO SANTA FE, CA 92067

BOARD MEETING AGENDA

for

Monday, September 11, 2017 6:00 p.m.

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FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Office Address: 750 Second Street, Encinitas, CA 92024 Telephone: (760) 942-5147 – Facsimile: (760) 942-5206

AGENDA

BOARD OF DIRECTORS SPECIAL MEETING Monday, September 11, 2017, 6:00 p.m.

Fairbanks Ranch Clubhouse, 17651 Circa Del Norte, Rancho Santa Fe

1. Call Meeting to Order and Roll Call. Board Members: President: Joleene Cannon Vice President: Rick Heymann Director: Rich Sparber Director: Julie Feld Director: Steve Charlton Staff: General Manager: Chuck Duffy District Administrator: Paula Melendrez 2. Public Comment.

Communication from the public concerning issues not listed on the agenda but which are within the subject matter jurisdiction of the District.

AGENDA

3. Consideration of Sewer Service Charge Rate and Capital 4-26 Reserve Study. Recommendation: To be made by the Board.

4. Consideration of Amendment to Fiscal Year 2017/2018 Budget. 27-30

Recommendation: Approve the amendment to the budget. 5. Adoption of a Resolution Reducing the District’s Annual 31-32

Sewer Service Charge. Recommendation: Approve the Resolution as presented.

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Fairbanks Ranch CSD Special Board Meeting Monday, September 11, 2017

Adjournment. This meeting is accessible to people with disabilities. Individuals who require special assistance to participate may request an alternative format of the agenda and packet materials. Notification in advance of the meeting will enable the District to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it. To request a disability-related modification or accommodation, please call (760) 479-4150.

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FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

GENERAL MANAGER BOARD OF DIRECTORS CHUCK DUFFY JOLEENE CANNON STEVE CHARLTON JULIE FELD RICK HEYMANN

RICHARD SPARBER

MEMORANDUM To: Board of Directors

From: Chuck Duffy, General Manager

Subject: Consideration of Sewer Service Charge Rate and Capital Reserve Study

Date: September 11, 2017

At our May board meeting, your board approved engaging a consultant to prepare a Sewer Service Charge and Capital Reserve Study. Wilson Engineering subsequently prepared the rate and reserve study, which the Board reviewed and discussed at our August board meeting prior to approving a reduction in the annual sewer service charge from $900 per EDU to $800 per EDU. The Sewer Service Charge and Capital Reserve Study is presented here for your further review and discussion.

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DEXTER WILSON ENGINEERING, INC. WATER ● WASTEWATER ● RECYCLED WATER

CONSULTING ENGINEERS

2234 FARADAY AVENUE ● CARLSBAD, CA ● (760) 438-4422

RATE AND RESERVE EVALUATION FOR THE

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

August 4, 2017

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FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 1 - Without inflation, no change to SSC, $220k annual capital

Annual Sewer Service Charge = 900$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 2 . Interest on Reserves 18,000$ D 8,500$ 7,900$ 7,400$ 6,800$ 6,300$ 5,700$ 5,100$ 4,600$ 4,000$ 3,400$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 624,000$ 623,400$ 622,900$ 622,300$ 621,800$ 621,200$ 620,600$ 620,100$ 619,500$ 618,900$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 2 . Power 115,000$ C 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 3 . Water 10,500$ B 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5 . Laboratory Services 8,000$ B 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 6 . Permit Fees 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 8 . Sludge Disposal 14,000$ B 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 9 . Chemicals and Consumables 6,000$ B 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$

10 . Equipment Repair and Maintenance 60,000$ B 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 11 . Landscape Maintenance 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 12 . Vehicle Expense 4,500$ B 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 13 . Contingency/Miscellaneous 1,000$ B 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$

SUB-TOTAL OPERATIONS 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 15 . Management 61,644$ B 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 16 . Publications, Notices, and Dues 3,000$ B 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 17 . Insurance 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 18 . Professional Services 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 19 . Auditing 12,000$ B 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 20 . Directors' Compensation 1,200$ B 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$

SUB-TOTAL ADMINISTRATION 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ TOTAL EXPENDITURES 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ 34,340$ 33,740$ 33,240$ 32,640$ 32,140$ 31,540$ 30,940$ 30,440$ 29,840$ 29,240$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,645,275$ 2,459,015$ 2,272,255$ 2,084,895$ 1,897,035$ 1,708,575$ 1,519,515$ 1,329,955$ 1,139,795$ 2 . Capital Projects (250,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ 3 . Transfer from/(to) Operating Budget 43,840$ 34,340$ 33,740$ 33,240$ 32,640$ 32,140$ 31,540$ 30,940$ 30,440$ 29,840$ 29,240$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,645,275$ 2,459,015$ 2,272,255$ 2,084,895$ 1,897,035$ 1,708,575$ 1,519,515$ 1,329,955$ 1,139,795$ 949,035$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 0 % increase annuallyC - 0 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201721

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 2 - With inflation, no change to SSC, $220k annual capital

Annual Sewer Service Charge = 900$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 2 . Interest on Reserves 18,000$ D 8,500$ 7,900$ 7,100$ 6,400$ 5,500$ 4,500$ 3,500$ 2,300$ 1,100$ (200)$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 624,000$ 623,400$ 622,600$ 621,900$ 621,000$ 620,000$ 619,000$ 617,800$ 616,600$ 615,300$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 182,532$ 188,008$ 193,649$ 199,458$ 205,442$ 211,605$ 217,953$ 224,492$ 231,227$ 238,163$ 2 . Power 115,000$ C 126,500$ 139,150$ 143,325$ 147,624$ 152,053$ 156,615$ 161,313$ 166,152$ 171,137$ 176,271$ 3 . Water 10,500$ B 10,815$ 11,139$ 11,474$ 11,818$ 12,172$ 12,538$ 12,914$ 13,301$ 13,700$ 14,111$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,665$ 5,835$ 6,010$ 6,190$ 6,376$ 6,567$ 6,764$ 6,967$ 7,176$ 7,392$ 5 . Laboratory Services 8,000$ B 8,240$ 8,487$ 8,742$ 9,004$ 9,274$ 9,552$ 9,839$ 10,134$ 10,438$ 10,751$ 6 . Permit Fees 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 41,200$ 42,436$ 43,709$ 45,020$ 46,371$ 47,762$ 49,195$ 50,671$ 52,191$ 53,757$ 8 . Sludge Disposal 14,000$ B 14,420$ 14,853$ 15,298$ 15,757$ 16,230$ 16,717$ 17,218$ 17,735$ 18,267$ 18,815$ 9 . Chemicals and Consumables 6,000$ B 6,180$ 6,365$ 6,556$ 6,753$ 6,956$ 7,164$ 7,379$ 7,601$ 7,829$ 8,063$

10 . Equipment Repair and Maintenance 60,000$ B 61,800$ 63,654$ 65,564$ 67,531$ 69,556$ 71,643$ 73,792$ 76,006$ 78,286$ 80,635$ 11 . Landscape Maintenance 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 12 . Vehicle Expense 4,500$ B 4,635$ 4,774$ 4,917$ 5,065$ 5,217$ 5,373$ 5,534$ 5,700$ 5,871$ 6,048$ 13 . Contingency/Miscellaneous 1,000$ B 1,030$ 1,061$ 1,093$ 1,126$ 1,159$ 1,194$ 1,230$ 1,267$ 1,305$ 1,344$

SUB-TOTAL OPERATIONS 476,716$ 499,067$ 514,040$ 529,461$ 545,345$ 561,705$ 578,556$ 595,913$ 613,790$ 632,204$ 651,170$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 103$ 106$ 109$ 113$ 116$ 119$ 123$ 127$ 130$ 134$ 15 . Management 61,644$ B 63,493$ 65,398$ 67,360$ 69,381$ 71,462$ 73,606$ 75,814$ 78,089$ 80,431$ 82,844$ 16 . Publications, Notices, and Dues 3,000$ B 3,090$ 3,183$ 3,278$ 3,377$ 3,478$ 3,582$ 3,690$ 3,800$ 3,914$ 4,032$ 17 . Insurance 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 18 . Professional Services 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 19 . Auditing 12,000$ B 12,360$ 12,731$ 13,113$ 13,506$ 13,911$ 14,329$ 14,758$ 15,201$ 15,657$ 16,127$ 20 . Directors' Compensation 1,200$ B 1,236$ 1,273$ 1,311$ 1,351$ 1,391$ 1,433$ 1,476$ 1,520$ 1,566$ 1,613$

SUB-TOTAL ADMINISTRATION 112,944$ 116,332$ 119,822$ 123,417$ 127,119$ 130,933$ 134,861$ 138,907$ 143,074$ 147,366$ 151,787$ TOTAL EXPENDITURES 589,660$ 615,400$ 633,862$ 652,878$ 672,464$ 692,638$ 713,417$ 734,820$ 756,864$ 779,570$ 802,957$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ 8,600$ (10,462)$ (30,278)$ (50,564)$ (71,638)$ (93,417)$ (115,820)$ (139,064)$ (162,970)$ (187,657)$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 220,000$ 226,600$ 233,398$ 240,400$ 247,612$ 255,040$ 262,692$ 270,572$ 278,689$ 287,050$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,619,535$ 2,382,474$ 2,118,798$ 1,827,834$ 1,508,584$ 1,160,127$ 781,616$ 371,979$ (69,680)$ 2 . Capital Projects (250,000)$ (220,000)$ (226,600)$ (233,398)$ (240,400)$ (247,612)$ (255,040)$ (262,692)$ (270,572)$ (278,689)$ (287,050)$ 3 . Transfer from/(to) Operating Budget 43,840$ 8,600$ (10,462)$ (30,278)$ (50,564)$ (71,638)$ (93,417)$ (115,820)$ (139,064)$ (162,970)$ (187,657)$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,619,535$ 2,382,474$ 2,118,798$ 1,827,834$ 1,508,584$ 1,160,127$ 781,616$ 371,979$ (69,680)$ (544,387)$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 3 % increase annuallyC - 10 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201722

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 3 - Without inflation, no change to SSC, $110k annual capital

Annual Sewer Service Charge = 900$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 2 . Interest on Reserves 18,000$ D 8,500$ 8,300$ 8,000$ 7,800$ 7,600$ 7,400$ 7,100$ 6,900$ 6,700$ 6,400$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 624,000$ 623,800$ 623,500$ 623,300$ 623,100$ 622,900$ 622,600$ 622,400$ 622,200$ 621,900$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 2 . Power 115,000$ C 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 3 . Water 10,500$ B 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5 . Laboratory Services 8,000$ B 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 6 . Permit Fees 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 8 . Sludge Disposal 14,000$ B 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 9 . Chemicals and Consumables 6,000$ B 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$

10 . Equipment Repair and Maintenance 60,000$ B 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 11 . Landscape Maintenance 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 12 . Vehicle Expense 4,500$ B 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 13 . Contingency/Miscellaneous 1,000$ B 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$

SUB-TOTAL OPERATIONS 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 15 . Management 61,644$ B 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 16 . Publications, Notices, and Dues 3,000$ B 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 17 . Insurance 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 18 . Professional Services 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 19 . Auditing 12,000$ B 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 20 . Directors' Compensation 1,200$ B 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$

SUB-TOTAL ADMINISTRATION 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ TOTAL EXPENDITURES 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ 34,340$ 34,140$ 33,840$ 33,640$ 33,440$ 33,240$ 32,940$ 32,740$ 32,540$ 32,240$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 110,000$ 110,000$ 110,000$ 110,000$ 110,000$ 110,000$ 110,000$ 110,000$ 110,000$ 110,000$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,755,275$ 2,679,415$ 2,603,255$ 2,526,895$ 2,450,335$ 2,373,575$ 2,296,515$ 2,219,255$ 2,141,795$ 2 . Capital Projects (250,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ (110,000)$ 3 . Transfer from/(to) Operating Budget 43,840$ 34,340$ 34,140$ 33,840$ 33,640$ 33,440$ 33,240$ 32,940$ 32,740$ 32,540$ 32,240$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,755,275$ 2,679,415$ 2,603,255$ 2,526,895$ 2,450,335$ 2,373,575$ 2,296,515$ 2,219,255$ 2,141,795$ 2,064,035$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 0 % increase annuallyC - 0 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201723

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 4 - With inflation, no change to SSC, $110k annual capital

Annual Sewer Service Charge = 900$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 615,500$ 2 . Interest on Reserves 18,000$ D 8,500$ 8,200$ 7,800$ 7,400$ 6,900$ 6,300$ 5,600$ 4,900$ 4,100$ 3,200$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 624,000$ 623,700$ 623,300$ 622,900$ 622,400$ 621,800$ 621,100$ 620,400$ 619,600$ 618,700$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 182,532$ 188,008$ 193,649$ 199,458$ 205,442$ 211,605$ 217,953$ 224,492$ 231,227$ 238,163$ 2 . Power 115,000$ C 126,500$ 139,150$ 143,325$ 147,624$ 152,053$ 156,615$ 161,313$ 166,152$ 171,137$ 176,271$ 3 . Water 10,500$ B 10,815$ 11,139$ 11,474$ 11,818$ 12,172$ 12,538$ 12,914$ 13,301$ 13,700$ 14,111$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,665$ 5,835$ 6,010$ 6,190$ 6,376$ 6,567$ 6,764$ 6,967$ 7,176$ 7,392$ 5 . Laboratory Services 8,000$ B 8,240$ 8,487$ 8,742$ 9,004$ 9,274$ 9,552$ 9,839$ 10,134$ 10,438$ 10,751$ 6 . Permit Fees 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 41,200$ 42,436$ 43,709$ 45,020$ 46,371$ 47,762$ 49,195$ 50,671$ 52,191$ 53,757$ 8 . Sludge Disposal 14,000$ B 14,420$ 14,853$ 15,298$ 15,757$ 16,230$ 16,717$ 17,218$ 17,735$ 18,267$ 18,815$ 9 . Chemicals and Consumables 6,000$ B 6,180$ 6,365$ 6,556$ 6,753$ 6,956$ 7,164$ 7,379$ 7,601$ 7,829$ 8,063$

10 . Equipment Repair and Maintenance 60,000$ B 61,800$ 63,654$ 65,564$ 67,531$ 69,556$ 71,643$ 73,792$ 76,006$ 78,286$ 80,635$ 11 . Landscape Maintenance 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 12 . Vehicle Expense 4,500$ B 4,635$ 4,774$ 4,917$ 5,065$ 5,217$ 5,373$ 5,534$ 5,700$ 5,871$ 6,048$ 13 . Contingency/Miscellaneous 1,000$ B 1,030$ 1,061$ 1,093$ 1,126$ 1,159$ 1,194$ 1,230$ 1,267$ 1,305$ 1,344$

SUB-TOTAL OPERATIONS 476,716$ 499,067$ 514,040$ 529,461$ 545,345$ 561,705$ 578,556$ 595,913$ 613,790$ 632,204$ 651,170$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 103$ 106$ 109$ 113$ 116$ 119$ 123$ 127$ 130$ 134$ 15 . Management 61,644$ B 63,493$ 65,398$ 67,360$ 69,381$ 71,462$ 73,606$ 75,814$ 78,089$ 80,431$ 82,844$ 16 . Publications, Notices, and Dues 3,000$ B 3,090$ 3,183$ 3,278$ 3,377$ 3,478$ 3,582$ 3,690$ 3,800$ 3,914$ 4,032$ 17 . Insurance 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 18 . Professional Services 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 19 . Auditing 12,000$ B 12,360$ 12,731$ 13,113$ 13,506$ 13,911$ 14,329$ 14,758$ 15,201$ 15,657$ 16,127$ 20 . Directors' Compensation 1,200$ B 1,236$ 1,273$ 1,311$ 1,351$ 1,391$ 1,433$ 1,476$ 1,520$ 1,566$ 1,613$

SUB-TOTAL ADMINISTRATION 112,944$ 116,332$ 119,822$ 123,417$ 127,119$ 130,933$ 134,861$ 138,907$ 143,074$ 147,366$ 151,787$ TOTAL EXPENDITURES 589,660$ 615,400$ 633,862$ 652,878$ 672,464$ 692,638$ 713,417$ 734,820$ 756,864$ 779,570$ 802,957$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ 8,600$ (10,162)$ (29,578)$ (49,564)$ (70,238)$ (91,617)$ (113,720)$ (136,464)$ (159,970)$ (184,257)$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 110,000$ 113,300$ 116,699$ 120,200$ 123,806$ 127,520$ 131,346$ 135,286$ 139,345$ 143,525$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,729,535$ 2,606,074$ 2,459,797$ 2,290,033$ 2,095,989$ 1,876,852$ 1,631,787$ 1,360,036$ 1,060,722$ 2 . Capital Projects (250,000)$ (110,000)$ (113,300)$ (116,699)$ (120,200)$ (123,806)$ (127,520)$ (131,346)$ (135,286)$ (139,345)$ (143,525)$ 3 . Transfer from/(to) Operating Budget 43,840$ 8,600$ (10,162)$ (29,578)$ (49,564)$ (70,238)$ (91,617)$ (113,720)$ (136,464)$ (159,970)$ (184,257)$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,729,535$ 2,606,074$ 2,459,797$ 2,290,033$ 2,095,989$ 1,876,852$ 1,631,787$ 1,360,036$ 1,060,722$ 732,939$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 3 % increase annuallyC - 10 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201724

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 5 - Without inflation, lower SSC, $220k annual capital

Annual Sewer Service Charge = 850$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 2 . Interest on Reserves 18,000$ D 8,500$ 7,800$ 7,200$ 6,500$ 5,800$ 5,200$ 4,500$ 3,800$ 3,200$ 2,500$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 590,300$ 589,600$ 589,000$ 588,300$ 587,600$ 587,000$ 586,300$ 585,600$ 585,000$ 584,300$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 177,216$ 2 . Power 115,000$ C 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$ 3 . Water 10,500$ B 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5,500$ 5 . Laboratory Services 8,000$ B 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 6 . Permit Fees 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 8 . Sludge Disposal 14,000$ B 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 14,000$ 9 . Chemicals and Consumables 6,000$ B 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$

10 . Equipment Repair and Maintenance 60,000$ B 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 11 . Landscape Maintenance 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 12 . Vehicle Expense 4,500$ B 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 13 . Contingency/Miscellaneous 1,000$ B 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$

SUB-TOTAL OPERATIONS 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ 476,716$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 15 . Management 61,644$ B 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 61,644$ 16 . Publications, Notices, and Dues 3,000$ B 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 17 . Insurance 20,000$ B 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 18 . Professional Services 15,000$ B 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 19 . Auditing 12,000$ B 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 20 . Directors' Compensation 1,200$ B 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$ 1,200$

SUB-TOTAL ADMINISTRATION 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ 112,944$ TOTAL EXPENDITURES 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ 589,660$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ 640$ (60)$ (660)$ (1,360)$ (2,060)$ (2,660)$ (3,360)$ (4,060)$ (4,660)$ (5,360)$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$ 220,000$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,611,575$ 2,391,515$ 2,170,855$ 1,949,495$ 1,727,435$ 1,504,775$ 1,281,415$ 1,057,355$ 832,695$ 2 . Capital Projects (250,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ (220,000)$ 3 . Transfer from/(to) Operating Budget 43,840$ 640$ (60)$ (660)$ (1,360)$ (2,060)$ (2,660)$ (3,360)$ (4,060)$ (4,660)$ (5,360)$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,611,575$ 2,391,515$ 2,170,855$ 1,949,495$ 1,727,435$ 1,504,775$ 1,281,415$ 1,057,355$ 832,695$ 607,335$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 0 % increase annuallyC - 0 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201725

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

Rate and Reserve Analysis

ANALYSIS 6 - With inflation, lower SSC, $220k annual capital

Annual Sewer Service Charge = 850$ Connected EDUs = 673.9

FY 2017/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28REVENUES Budget Notes

1 . Sewer Service and Standby Charges 615,500$ A 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 581,800$ 2 . Interest on Reserves 18,000$ D 8,500$ 7,800$ 6,900$ 6,100$ 5,100$ 4,000$ 2,900$ 1,600$ 300$ (1,100)$ 3 . Other Income -$ A -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUES 633,500$ 590,300$ 589,600$ 588,700$ 587,900$ 586,900$ 585,800$ 584,700$ 583,400$ 582,100$ 580,700$ EXPENDITURES

OPERATIONS1 . Treatment Plant and Pump Station Labor 177,216$ B 182,532$ 188,008$ 193,649$ 199,458$ 205,442$ 211,605$ 217,953$ 224,492$ 231,227$ 238,163$ 2 . Power 115,000$ C 126,500$ 139,150$ 143,325$ 147,624$ 152,053$ 156,615$ 161,313$ 166,152$ 171,137$ 176,271$ 3 . Water 10,500$ B 10,815$ 11,139$ 11,474$ 11,818$ 12,172$ 12,538$ 12,914$ 13,301$ 13,700$ 14,111$ 4 . Telephone and Alarm Monitoring 5,500$ B 5,665$ 5,835$ 6,010$ 6,190$ 6,376$ 6,567$ 6,764$ 6,967$ 7,176$ 7,392$ 5 . Laboratory Services 8,000$ B 8,240$ 8,487$ 8,742$ 9,004$ 9,274$ 9,552$ 9,839$ 10,134$ 10,438$ 10,751$ 6 . Permit Fees 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 7 . Sewer Cleaning & Dig Alert 40,000$ B 41,200$ 42,436$ 43,709$ 45,020$ 46,371$ 47,762$ 49,195$ 50,671$ 52,191$ 53,757$ 8 . Sludge Disposal 14,000$ B 14,420$ 14,853$ 15,298$ 15,757$ 16,230$ 16,717$ 17,218$ 17,735$ 18,267$ 18,815$ 9 . Chemicals and Consumables 6,000$ B 6,180$ 6,365$ 6,556$ 6,753$ 6,956$ 7,164$ 7,379$ 7,601$ 7,829$ 8,063$

10 . Equipment Repair and Maintenance 60,000$ B 61,800$ 63,654$ 65,564$ 67,531$ 69,556$ 71,643$ 73,792$ 76,006$ 78,286$ 80,635$ 11 . Landscape Maintenance 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 12 . Vehicle Expense 4,500$ B 4,635$ 4,774$ 4,917$ 5,065$ 5,217$ 5,373$ 5,534$ 5,700$ 5,871$ 6,048$ 13 . Contingency/Miscellaneous 1,000$ B 1,030$ 1,061$ 1,093$ 1,126$ 1,159$ 1,194$ 1,230$ 1,267$ 1,305$ 1,344$

SUB-TOTAL OPERATIONS 476,716$ 499,067$ 514,040$ 529,461$ 545,345$ 561,705$ 578,556$ 595,913$ 613,790$ 632,204$ 651,170$ ADMINISTRATION

14 . Bank Fees, printing, supplies & postage 100$ B 103$ 106$ 109$ 113$ 116$ 119$ 123$ 127$ 130$ 134$ 15 . Management 61,644$ B 63,493$ 65,398$ 67,360$ 69,381$ 71,462$ 73,606$ 75,814$ 78,089$ 80,431$ 82,844$ 16 . Publications, Notices, and Dues 3,000$ B 3,090$ 3,183$ 3,278$ 3,377$ 3,478$ 3,582$ 3,690$ 3,800$ 3,914$ 4,032$ 17 . Insurance 20,000$ B 20,600$ 21,218$ 21,855$ 22,510$ 23,185$ 23,881$ 24,597$ 25,335$ 26,095$ 26,878$ 18 . Professional Services 15,000$ B 15,450$ 15,914$ 16,391$ 16,883$ 17,389$ 17,911$ 18,448$ 19,002$ 19,572$ 20,159$ 19 . Auditing 12,000$ B 12,360$ 12,731$ 13,113$ 13,506$ 13,911$ 14,329$ 14,758$ 15,201$ 15,657$ 16,127$ 20 . Directors' Compensation 1,200$ B 1,236$ 1,273$ 1,311$ 1,351$ 1,391$ 1,433$ 1,476$ 1,520$ 1,566$ 1,613$

SUB-TOTAL ADMINISTRATION 112,944$ 116,332$ 119,822$ 123,417$ 127,119$ 130,933$ 134,861$ 138,907$ 143,074$ 147,366$ 151,787$ TOTAL EXPENDITURES 589,660$ 615,400$ 633,862$ 652,878$ 672,464$ 692,638$ 713,417$ 734,820$ 756,864$ 779,570$ 802,957$ NET GAIN/(LOSS) ON OPERATIONS 43,840$ (25,100)$ (44,262)$ (64,178)$ (84,564)$ (105,738)$ (127,617)$ (150,120)$ (173,464)$ (197,470)$ (222,257)$

CAPITAL PROJECTS1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$ B 220,000$ 226,600$ 233,398$ 240,400$ 247,612$ 255,040$ 262,692$ 270,572$ 278,689$ 287,050$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2,830,935$ 2,585,835$ 2,314,974$ 2,017,398$ 1,692,434$ 1,339,084$ 956,427$ 543,616$ 99,579$ (376,580)$ 2 . Capital Projects (250,000)$ (220,000)$ (226,600)$ (233,398)$ (240,400)$ (247,612)$ (255,040)$ (262,692)$ (270,572)$ (278,689)$ (287,050)$ 3 . Transfer from/(to) Operating Budget 43,840$ (25,100)$ (44,262)$ (64,178)$ (84,564)$ (105,738)$ (127,617)$ (150,120)$ (173,464)$ (197,470)$ (222,257)$

CAPITAL REPLACEMENT RESERVE (FY END) 2,830,935$ 2,585,835$ 2,314,974$ 2,017,398$ 1,692,434$ 1,339,084$ 956,427$ 543,616$ 99,579$ (376,580)$ (885,887)$

Minimum Reserve Target = 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ Ideal Reserve Target = 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$ 2,250,000$

Assumption Notes:A - No Change to base amount.B - 3 % increase annuallyC - 10 % increase annuallyD - 0.30 % on Prior FY Rsrv

Dexter Wilson Engineering, Inc.539-011 Appendix B August 4, 201726

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

GENERAL MANAGER BOARD OF DIRECTORS CHUCK DUFFY JOLEENE CANNON STEVE CHARLTON JULIE FELD RICK HEYMANN

RICHARD SPARBER

MEMORANDUM To: Board of Directors

From: Chuck Duffy, General Manager

Subject: Consideration of Amendment to Fiscal Year 2017/18 Budget

Date: September 11, 2017

At the District’s August board meeting, your Board reviewed the Sewer Service Charge and Capital Reserve Study prepared by Wilson Engineering. At that same meeting, the Board approved the reduction of the annual sewer service charge from $900 per EDU to $800 per EDU. The attached revised budget presented for your Board’s approval incorporates the following changes: 1) Revenues - the reduction in the sewer service charge from $900 to $800 per EDU; 2) Revenues - the expected interest rate on reserves has been increased to 1% to reflect the most recent LAIF interest rates; and 3) Capital Expenses - the revisions to the Capital Projects Budget made at the May board meeting, wherein the Rate and Reserve Study and the Re-build of Clarifiers 1 and 2 line items were added. I would recommend that your Board approve the amendment to the Fiscal Year 2017/18 Budget as presented.

27

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICTFISCAL YEAR 2017/18

BUDGET

FY 2017/18REVENUES Budget

1 . Sewer Service and Standby Charges 548,100$ 2 . Interest on Reserves 29,000$ 3 . Other Income -$

TOTAL REVENUES 577,100$

Assumption: 674 EDU's at $800 per EDU, and 15 Standby Charges

Page 1 of 3 28

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICTFISCAL YEAR 2017/18

BUDGET

EXPENDITURESFY 2017/18

OPERATIONS Budget 1 . Treatment Plant and Pump Station Labor 177,216$ 2 . Power 115,000$ 3 . Water 10,500$ 4 . Telephone and Alarm Monitoring 5,500$ 5 . Laboratory Services 8,000$ 6 . Permit Fees 20,000$ 7 . Sewer Cleaning & Dig Alert 40,000$ 8 . Sludge Disposal 14,000$ 9 . Chemicals and Consumables 6,000$

10 . Equipment Repair and Maintenance 60,000$ 11 . Landscape Maintenance 15,000$ 12 . Vehicle Expense 4,500$ 13 . Contingency/Miscellaneous 1,000$

SUB-TOTAL OPERATIONS 476,716$

ADMINISTRATION14 . Bank Fees, printing, supplies & postage 100$ 15 . Management 61,644$ 16 . Publications, Notices, and Dues 3,000$ 17 . Insurance 20,000$ 18 . Professional Services 15,000$ 19 . Auditing 12,000$ 20 . Directors' Compensation 1,200$

SUB-TOTAL ADMINISTRATION 112,944$

TOTAL EXPENDITURES 589,660$

NET GAIN/(LOSS) ON OPERATIONS (12,560)$

Page 2 of 3 29

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICTFISCAL YEAR 2017/18

BUDGET

FY 2017/18CAPITAL PROJECTS Budget

1 . Purchase of screw drive for clarifier #3 30,000$ 2 . Sewer Service Charge Rate and Reserve Study 20,000$ 3 . Complete re-build of clarifiers 1 and 2 150,000$ 4 . Portable Godwin Pump 50,000$

TOTAL CAPITAL PROJECTS 250,000$

CAPITAL REPLACEMENT RESERVE1 . Beginning Balance 3,037,095$ 2 . Capital Projects (250,000)$ 3 . Transfer from/(to) Operating Budget (12,560)$

CAPITAL REPLACEMENT RESERVE AT END OF FISCAL YEA 2,774,535$

Page 3 of 3 30

FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

GENERAL MANAGER BOARD OF DIRECTORS CHUCK DUFFY JOLEENE CANNON STEVE CHARLTON JULIE FELD RICK HEYMANN

RICHARD SPARBER

MEMORANDUM To: Board of Directors

From: Chuck Duffy, General Manager

Subject: Adoption of a Resolution Reducing the District’s Annual Sewer Service Charge

Date: September 11, 2017

At the District’s August board meeting, your Board reviewed the Sewer Service Charge and Capital Reserve Study prepared by Wilson Engineering. At that same meeting, the Board approved the reduction of the annual sewer service charge from $900 to $800 per equivalent dwelling unit (EDU). Therefore, attached for your Board’s approval is a resolution enacting the reduction to the annual sewer service charge. I would recommend that your Board approve the Resolution as presented.

31

605 Third Street • Encinitas, CA 92024 • (760) 942-5147 • FAX (760) 942-5206

Resolution R-2017-02

RESOLUTION OF THE BOARD OF DIRECTORS OF THE FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT

AMENDING AND ESTABLISHING THE ANNUAL SEWER SERVICE CHARGE WHEREAS, the Fairbanks Ranch Community Services District Board of Directors has previously approved and adopted the District’s Uniform Sewerage Ordinance; and WHEREAS, the District’s Uniform Sewerage Ordinance provides for the establishment of an annual sewer service charge for those properties connected to the District’s sewer system; and WHEREAS, said Ordinance also provides that the annual sewer service charge may be amended by a resolution of the District’s Board of Directors; and WHEREAS, the District’s annual sewer service charge is currently set at $900 per equivalent dwelling unit, and the District Board of Directors desires to reduce the annual sewer service charge to $800 per equivalent dwelling unit;

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE FAIRBANKS RANCH COMMUNITY SERVICES DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER THAT:

As established in Article V, Section 30 of the District’s Uniform Sewerage Ordinance, the annual sewer service charge for each equivalent dwelling unit as calculated by the District is hereby amended to $800. PASSED AND ADOPTED this 11th day of September 2017, by the following vote: AYES:

NOES: ABSENT:

_____________________________________ President of the Board of Directors Fairbanks Ranch Community Services District Attest: ________________________________ General Manager Fairbanks Ranch Community Services District

32