alexandria renew enterprises...alexandria renew has two major sources of revenue: wastewater...

ALEXANDRIA RENEW ENTERPRISES

ALEXANDRIA RENEW ENTERPRISES

FISCAL YEAR 2016 OPERATING & CAPITAL BUDGET

-FINAL-

October 1, 2015 – September 30, 2016

Public Hearing: September 15, 2015

Adopted: September 15, 2015

FY 2016 OPERATING & CAPITAL BUDGET Adopted September 15, 2015 2

Alexandria Renew Enterprises Board of Directors

John Hill, Chairman Thomas Van Wagner, Vice Chairman

William Dickinson, Secretary-Treasurer Matt Ries, Member

Bruce Johnson, Member

Alexandria Renew Staff

Karen Pallansch, Chief Executive Officer Lester Robinson, Chief Financial Officer

Cortlin Davidson, Chief Human Resources Officer Janelle Okorie, Chief Engineering and Technology Officer

David Brewster, Chief Operations & Maintenance Lisa Van Riper, Chief Enterprise Communications Officer

Robert Oshode, Controller


Table of Contents AlexRenew Board of Directors and Staff….. .........................................................................................................................2 Chief Executive Officer’s Message .......................................................................................................................................4 AlexRenew Board 2040 Vision .............................................................................................................................................5 Understanding the Budget .............................................................................................................................................. 6-7 Summary of Proposed FY 2016 Consolidated Budget .........................................................................................................8 AlexRenew Budget Development Process ...........................................................................................................................9 Forecast Scenarios .............................................................................................................................................................10 Consolidated Enterprise Budget FY 2016 ..........................................................................................................................11 Revenue Fund Budget FY 2016 ..........................................................................................................................................12 Revenue Fund Budget Ten-Year Forecast FY 2016 Ten-Year Plan .....................................................................................13 Revenue from Fairfax County FY 2016 ..............................................................................................................................14 AlexRenew Utility Rates Change ........................................................................................................................................15 Operating Fund Explanatory Notes ...................................................................................................................................16 Operating Fund Proposed Budget FY 2016 ........................................................................................................................17 Alexandria Renew Enterprises Organizational Chart .........................................................................................................18 Workforce Overview ..........................................................................................................................................................19 Parity Debt Service Fund Explanatory Notes .....................................................................................................................20 Parity Fund Budget FY 2016 ...............................................................................................................................................21 Joint Improvement, Renewal & Replacement Fund Explanatory Notes ...........................................................................22 Joint Improvement, Renewal & Replacement Proposed Budget FY 2016 .........................................................................23 General Fund Explanatory Notes .......................................................................................................................................24 General Fund Proposed Budget FY 2016 ...........................................................................................................................25 General Fund IR&R Proposed Budget FY 2016 ..................................................................................................................26 Project Fund Explanatory Notes ........................................................................................................................................27 Project Fund Proposed Budget FY 2016 ............................................................................................................................28 Project Fund Summary Sources for Joint CIP .....................................................................................................................29 FY 2016 Capital Improvement Program Overview ............................................................................................................30 Alexandria Only Capital Improvement Program (CIP) Details ..................................................................................... 31-35 Joint Capital Improvement Program (CIP) Details ....................................................................................................... 36-56 Ten-Year Capital Improvement Plan: Alexandria Only and Joint Use ...............................................................................57 FY 2016 Calculations of Reserves and Debt Coverage ......................................................................................................58


CEO’s Message to AlexRenew Board of Directors and Customers May 29, 2015 To the Board of Directors, Alexandria Renew Enterprises: The Fiscal Year 2016 budget is a reflection of the 2040 Board Vision and Strategic Outcomes that were developed during the past year. Our financial picture remains strong, and our practices of ensuring sustainable and stable finances and maintaining operational excellence continue. We are focusing on finding innovative solutions for our community in the coming years -- renewing our City through the transformational work we do, both in reusing the byproducts of our process, and in activating a new area of the Eisenhower Valley community – our West Site. With the multipurpose field atop our new nutrient management facility and our Environmental Center, which invites the community in to experience AlexRenew and all we have to offer, we are investing in community engagement and inspiring water stewardship like never before. From an organizational standpoint, we are reinforcing the talent in our workforce through cost-effective apprentice programs, which continue to attract the best and brightest to AlexRenew. Our apprentices, many of whom have advanced degrees when they enter one of our three apprentice programs, are studying for and passing their certification exams, continuing our emphasis on world class performance. We continue our focus on sustainable operations and finding ways to offset costs by using resources recovered from our water processing, such as using methane gas to help heat our campus, and reclaimed water to help run our equipment. Reclaimed water will also be used in the coming year to irrigate the development on our West Site, which will help reduce the nutrient load that is going into the Chesapeake Bay. We are also implementing mainstream Anammox this year, an innovative water cleaning process that will reduce energy costs, and save on the chemicals we use to remove nitrogen, since the Anammox microbes do it naturally. All of this work we are doing will only continue to strengthen our financial future. Thank you for your ongoing support and thank you to the AlexRenew team that helps us do the innovative, transformational, and sustainable work to clean Alexandria’s dirty water and ensure stable rates and finances for us. Respectfully Submitted, Karen L. Pallansch Chief Executive Officer Alexandria Renew Enterprises


Board 2040 Vision


Understanding the Budget What is Alexandria Renew’s Budget? Alexandria Renew’s budget is the documentation of the financial policy and capital investment decisions necessary to provide a clean, healthy water environment for our community. AlexRenew is charged with the responsibility to construct, operate, and maintain a Wastewater Treatment system in compliance with state and federal water pollution control laws. Current expenses and capital expenditures are estimates based on experience and judgment related to cost trends, labor, materials and services required to operate and maintain the facilities. Alexandria Renew has no options with respect to the level of service it must provide to meet the requirements of the law and no discretionary programs within its assigned scope of activity. The primary purpose of the budget is to ensure Alexandria Renew maintains its mandated level of service and satisfies the requirements of the Master Trust. Alexandria Renew has two major sources of revenue: wastewater treatment charges paid by Alexandria customers, and reimbursement of a proportion of expenses from Fairfax County. The County reimburses Alexandria Renew under an amended and restated Service Agreement dated October 1, 1998. Under this Agreement, Fairfax County pays a percentage of expenses based upon flow volume. The County also contributes to the Improvement, Renewal & Replacement (IRR) Fund at 60% and Capital Improvement Program (CIP) Project Fund, at the same percentage, to allow for the replacement and rejuvenation of capital assets as they depreciate, as well as asset additions associated with regulatory compliance. Flow of Funds Explained Under the Master Trust, the Revenue Fund is the depository for all revenues of Alexandria Renew. Alexandria Renew shall make transfers from the Revenue Fund in the following order of priority: I. To the Operating Fund, an amount that will cause the balance on deposit to be equal to one-sixth

of the current year’s budgeted amount for operating expenses. II. To the Parity Debt Service Fund, an amount that will cause the balance on deposit to be sufficient

to pay the principal and interest on the respective payment dates. III. To the Joint Improvement, Renewal & Replacement Fund (IRR), an amount equal to the Alexandria

portion (40%) of the annual calculation of the required contribution to the Fund. IV. To the General IRR, an amount equal to 0.5% of the total amount of the annual calculation to the

Fund. V. To the General Fund, any amount that remains after making the deposits required above.


Understanding the Budget – continued The following notes provide additional information for the budget: Beginning Balance: Alexandria Renew is required, by banking agreement, to maintain a minimum balance of $100,000. Receipts: Two main sources of income are the Wastewater Treatment charges (fees charged to City customers) and the Fairfax County contributions to the Operating Fund. The gallonage charge beginning on October 1, 2015, will be $6.77/1000 gallons used. In 2010, Alexandria Renew adopted a new fixed "Base Charge" to recover the fixed costs of operations associated with nutrient control. The Base Charge, as of October 1, 2015, is $8.38 per month for residential customers, and a monthly fee for commercial customers based on meter size. Investment income is expected to be minimal, given today’s investment climate. Disbursements: As noted above, the Master Trust requires certain monies to be transferred to each Fund to ensure appropriate levels of support. How is the Budget Organized? The Consolidated Enterprise Budget combines all of the resources of Alexandria Renew. The remaining Budget documents are organized in accordance with the “flow of funds” provisions included in the Master Trust. The major Funds of the budget are:

Revenue Fund; Operating Fund; Parity Debt Service Fund; Improvement, Renewal & Replacement (IRR) Fund; General Fund; and Project Fund.

A description of each fund is included with the related budget details in the pages that follow. Budgets are prepared for the Capital Projects basis and cover the life of the project.


Summary of Proposed FY16 Consolidated Budget The following is an overview of the major spending elements of the FY 2016 Alexandria Renew budget.

The FY 2016 proposed budget is $93.39 million, of which $43.35 million is in large infrastructure construction investment. The construction decrease of -43 % is driven primarily by the completion of the Nutrient Removal Compliance Program. Alexandria Renew’s operating expenses are projected to increase slightly. The General Fund decrease is primarily driven by the Four Mile Run Pump Station and the multi-purpose field completion.

Millions of DollarsFY 2014 FY 2015 FY 2016 $ Change % Change

Expenses Actual Final ProposedOperating Fund 24.22$ 25.07$ 25.83$ 0.76$ 3.02%Debt Service Fund 11.56 12.20 13.80 1.60 13.13%General Fund 3.56 7.47 3.85 (3.62) -48.49%Joint IR & R Fund 6.02 5.34 6.10 0.76 14.16%General Fund IR&R 0.18 0.33 0.48 0.15 46.15%Project Fund 69.29 76.16 43.35 (32.81) -43.08%

Total 114.83$ 126.56$ 93.39$ (33.17)$ -26.21%

BUDGET SUMMARY

Revised FY 15 vs. FY 16


AlexRenew Budget Development Process

Month Customer Board of Directors Staff February – April Proposed Budget

Development Departments prepare budget proposals; CEO develops a balanced proposed budget

May The CEO presents the proposed budget to the Board of Directors

June Budget Review (June-July) Board of Directors requests additional information on specific budget issues from staff.

July Public Notice Board authorizes staff to public notice proposed AlexRenew budget

Public Notice

August Public Notice Public Notice September Public Hearing Public Hearing & Final

Adoption Board of Directors makes final decisions and adopts the AlexRenew budget for the upcoming fiscal year

Execute adopted FY 2016 Budget starting 10/1/2015


Forecast Scenarios

Ten-Year Financial Plan AlexRenew has developed a 10-year plan for financial sustainability to identify future needs and revenue challenges and develop strategies for addressing them. AlexRenew is a capital intensive utility, driven first and foremost by Federal, State and local water related regulations. Revenue Growth Assumptions Ten year modeled revenue is assumed to grow slowly, at 2.0 %. This aligns with historical water revenue growth data. Fairfax operations and maintenance (O&M) costs are projected to grow at an annual rate of 2%. Expenditure Growth Assumptions Modeled expenditures are independently analyzed by line item. A range of inflation factors is used, from 2.00% to 3.50% based on historical CPI inflation factors.


CONSOLIDATED ENTERPRISE FY 2016 BUDGET

RevisedFY 2014 Mid-Year 2015 FY 2016 % Change OrigActual Budget Budget to Mid-year

Revenues and Other Sources:Wastewater Treatment Charges 37,606,611$ 37,500,000$ 38,250,000$ 2.00%Fairfax County: Operating 10,953,398 11,158,900 10,989,100 -1.52% IR&R 2,184,600 2,348,900 2,670,300 13.68%

Total 50,744,609$ 51,007,800$ 51,909,400$ 1.77%

Expenditures: Personnel services 13,063,195 13,511,987 13,138,385 -2.76%Fuel, Power & Utilities 3,224,653 3,057,508 3,172,751 3.77%Chemicals 1,660,137 1,500,000 1,480,000 -1.33%Operations Maintenance 2,225,072 2,390,500 2,436,500 1.92%Business Support 1,399,477 1,528,000 2,337,292 52.96%Professional Services 1,438,891 1,399,500 1,336,500 -4.50%Arlington Sewage Disposal 1,641,233 1,685,000 1,928,463 14.45%Improvement, Renewal & Replacement (Alex only) 36,364 325,000 475,000 46.15%Joint Improvement, Renewal & Replacment 4,063,720 5,945,000 6,096,000 2.54%Capital Projects (Alex only) 4,002,813 7,059,910 3,291,115 -53.38%Other Expenses (Alex only) - - 62,000 Joint Capital Projects 70,496,761 76,155,062 43,345,000 -43.08%

Total 103,252,316$ 114,557,467$ 79,099,006$ -30.95%

Non-operating Revenues (Expenditures):Investment Income 326,893 226,300 184,000 -18.69%Debt Principal Payments (7,810,804) (8,035,082) (9,287,662) 15.59%Debt Interest Expense (3,725,770) (4,161,523) (4,585,113) 10.18%Proceeds from Debt 14,094,979 15,500,000 10,000,000 -35.48%Finance Fees (43,620) (410,000) (420,000) 2.44%Grants 8,075,005 4,021,452 - -100.00%Fairfax County Capital Contributions 41,901,391 41,183,537 23,469,500 -43.01%Other income (Land Sale) 1,000,000 - -

Total 53,818,074$ 48,324,685$ 19,360,725$ -59.94%

Excess (Deficiency) of Revenues over Expenditures 1,310,367$ (15,224,983)$ (7,828,881)$

Fund Balance - Beginning 46,718,676$ 41,106,959$ 25,881,976$

Fund Balance - Ending 48,029,043$ 25,881,976$ 18,053,095$


FY 2014 2015 RevisedActual Budget FY 2016 Budget

Revenues and Other Sources:Wastewater Treatment Charges 37,606,611$ 37,500,000$ 38,250,000$ Fairfax County - Operating Expense Charge 10,953,398 10,822,700 11,206,000 Fairfax County - IRR 2,184,600 2,348,900 2,670,308 Interest Income 1,300 1,300 1,300 Other Income 3,480 - -

Total Revenues 50,749,389$ 50,672,900$ 52,127,608$

Expenditures: Transfer to Operating Fund 25,538,000$ 25,072,495$ 25,829,891$ Transfer to Operating Fund - Financial Policy - Transfer to Parity Debt Service Fund 11,934,335 12,212,564 13,050,500 Transfer to IRR Fund - Fairfax County 2,184,600 2,348,900 2,670,308 Transfer to IRR Fund 1,456,436 1,565,923 1,791,702 Transfer to IRR General Account (Alex Only) 356,700 356,700 260,000 Transfer to General Fund 9,220,500 9,029,918 8,445,137

Total Expenditures 50,690,571$ 50,586,500$ 52,047,538$

Excess (Deficiency) of Revenues over Expenditures 58,818$ 86,400$ 80,070$

Fund Balance - Beginning 100,000$ 100,000$ 186,400$

Fund Balance - Ending 158,818$ 186,400$ 266,470$

REVENUE FUND BUDGET FY 2016

Alexandria Renew Enterprises


REVENUE FUND BUDGET FY 2016 TEN-YEAR FORECAST

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025Revenues and Other Sources: Wastewater Treatment Charges 38,250,000$ 39,015,000$ 39,795,300$ 40,591,206$ 41,403,030$ 42,231,091$ 43,075,713$ 43,937,227$ 44,815,971$ 45,712,291$ Fairfax County - Operating Expense Charge 11,206,000$ 11,430,120$ 11,658,722$ 11,891,897$ 12,129,735$ 12,372,329$ 12,619,776$ 12,872,172$ 13,129,615$ 13,392,207$ Fairfax County - IRR 2,670,308$ 2,723,714$ 2,778,188$ 2,833,752$ 2,890,427$ 2,948,236$ 3,007,200$ 3,067,344$ 3,128,691$ 3,191,265$ Investment Income 1,300 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ Other Income - - - - - - - Transfer from General Fund - - - - - - - - - -

Total Revenues 52,127,608$ 53,170,134$ 54,233,511$ 55,318,155$ 56,424,492$ 57,552,956$ 58,703,989$ 59,878,043$ 61,075,578$ 62,297,063$

Expenditures: Transfer to Operating Fund 25,829,891$ 26,346,489$ 26,873,419$ 27,410,887$ 27,959,105$ 28,518,287$ 29,088,653$ 29,670,426$ 30,263,834$ 30,869,111$ Transfer to Operating Fund - Financial Policy - - - - - - - - - - Transfer to Parity Debt Service Fund 13,050,500 14,997,856 15,000,389 14,950,000 14,994,084 14,177,892 14,785,739 7,185,569 5,641,319 5,754,145 Transfer to IRR Fund - Fairfax County 2,670,308 2,820,781 3,034,880 3,136,331 3,199,058 3,263,039 3,328,299 3,394,865 3,462,763 3,532,018 Transfer to IRR Fund 1,791,702 1,944,650 1,905,587 1,973,221 2,012,685 2,052,939 2,093,997 2,135,877 2,178,595 2,222,167 Transfer to IRR General Account (Alex Only) 260,000 265,200 270,504 275,914 281,432 287,061 292,802 298,658 304,631 310,724 Transfer to General Fund 8,445,137 6,795,007 7,148,702 7,571,702 7,978,098 9,253,663 9,114,398 17,192,547 19,224,336 19,608,797 6850000

Total Expenditures 52,047,538$ 53,169,984$ 54,233,480$ 55,318,055$ 56,424,462$ 57,552,880$ 58,703,889$ 59,877,942$ 61,075,478$ 62,296,963$

Excess (Deficiency) of Revenues over Expenditures 80,070$ 150$ 30$ 100$ 30$ 75$ 100$ 100$ 100$ 100$

Fund Balance - Beginning 186,400$ 266,470$ 266,620$ 266,650$ 266,750$ 266,780$ 266,855$ 266,955$ 267,055$ 267,155$

Fund Balance - Ending 266,470$ 266,620$ 266,650$ 266,750$ 266,780$ 266,855$ 266,955$ 267,055$ 267,155$ 267,255$



REVENUE FROM FAIRFAX COUNTY FY 2016

FinalOperating Fund Contribution FY 2014 FY 2015 FY 2016

Actual Budget Budget FY 2017 FY 2018 FY 2019Total Estimated Operating Expenses 24,682,165$ 25,072,495$ 25,829,891$ 26,346,489$ 26,873,419$ 27,410,887$ Less Estimated "Alexandria Only" Expenses (3,649,089) (3,649,089) (3,649,089) (3,722,070) (3,796,512) (3,872,442)

Net Estimated Joint Operating Expense 21,033,076 21,423,407 22,180,803 22,624,419 23,076,907 23,538,445

Estimated Ratio of Net County Flow to Total Flow Received 50.6% 50.6% 50.6% 50.6% 50.6% 50.6%

Preliminary Estimate of County Share of O&M Expenses 10,642,737 10,840,244 11,223,486 11,447,956 11,676,915 11,910,453 Less Charges for Alexandria City flow (17,526) (17,526) (17,526) (17,526) (17,526) (17,526)

Net Fairfax County Share of O&M 10,625,200$ 10,822,700$ 11,206,000$ 11,430,400$ 11,659,400$ 11,892,900$

Improvement, Renewal & Replacement (IRR) Fund Contribution

Joint Use IRR Expenditures 559,260,479$ 559,260,479$ 637,429,923$ 680,775,923$ 705,780,923$ 729,935,923$

Funding Percentage from Agreement 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%

Fairfax County Eligible Share of Joint CIP at 49% - - 13,985 99,687 142,562 142,562 Fairfax County Eligible Share of Joint CIP at 26% - - 2,874 12,311 18,453 18,453 Fairfax County Share of Joint CIP at 60% - - 2,653,449 2,708,784 2,873,865 2,975,316 Fairfax County Total IR&R Share 2,348,900 2,348,900 2,670,308 2,820,781 3,034,880 3,136,331

Total Needs 3,914,823 3,914,823 4,462,009 4,765,431 4,940,466 5,109,551

Joint Capital Improvement Program (CIP) Capital Contribution

Estimated Joint Capital Improvements 68,109,949$ 45,980,062$ 27,320,000$ 23,655,000$ 22,655,000$ 21,730,000$ Fairfax County Share of Joint CIP at 60% 39,492,950 27,588,037 16,392,000 14,193,000 13,593,000 13,038,000 Estimated Joint Capital Improvements 50% - - 150,000 1,350,000 1,500,000 5,000,000 Fairfax County Share of Joint CIP at 50% - - 75,000 675,000 750,000 2,500,000 Estimated Joint Capital Improvements 49% 4,077,281 25,000,000 12,500,000 - - - Fairfax County Share of Joint CIP at 49% 1,997,867 12,250,000 6,125,000 - - - Estimated Joint Capital Improvements 26% 1,579,130 5,175,000 3,375,000 - - - Fairfax County Share of Joint CIP at 26% 410,574 1,345,500 877,500 - - - Fairfax Construction Contribution - 41,183,537 23,469,500 14,868,000 14,343,000 14,343,000

Total Contribution from Fairfax: 54,875,491$ 54,355,137$ 37,345,808$ 29,119,181$ 29,037,280$ 30,567,231$



Alexandria Renew Utility Rates Change

Monthly Rate Structure(1)

Description Meter size Effective EffectiveOctober 1, 2014 October 1, 2015

Per 1,000 Gallons Per 1,000 GallonsIndividually Meterest Residential Wastewater Treatment Charge(2) All Meters 6.64$ $6.77

Commercial Wastewater Treatment Charge All Meters 6.64$ $6.77

Description Meter size Effective EffectiveOctober 1, 2014 October 1, 2015

Monthly MonthlyResidential Base Charge All Meters 8.38$ No Change

Commercial Base Charge 5/8” 25.15$ No Change3/4” 25.15$ No Change1” 62.87$ No Change1-1/2” 125.75$ No Change2” 201.20$ No Change3” 377.25$ No Change4” 628.74$ No Change6” 1,257.50$ No Change8” 2,892.25$ No Change

Base Charge – a charge per account predicated on the size of the meter serving the customer premise, will be billed to all wastewater customers at the rates show below:

(1)Rates shown reflect charges for Alexandria Renew Enterprises and do not include any Sewer Service Charges or connection fees for the City of Alexandria.

(2)The individually metered residential (single-family) customer's monthly Wastewater Treatment Charges shall be based on water meter readings at the customer's premise. Individually-metered Residential Customers shall be billed the Wastewater Treatment Charges utilizing a monthly wastewater treatment billing cap that shall be determined annually. The wastewater treatment billing cap per customer shall be established based on the greater of: a) 4,000 gallons a month; or b) the customer's average monthly metered water consumption (gallons) recognized on bills rendered during the winter period which is defined as the months of December, January, and February. The monthly wastewater treatment billing cap is not effective for bills rendered during the winter period months. If no bills are rendered to the customer for water service during the winter period, then the monthly wastewater treatment billing cap shall be established at 4,000 gallons a month until a winter period average can be established.

This schedule shall apply to all individually metered residential customers and commercial customers discharging sewage to and/or requiring wastewater treatment service by Alexandria Renew Enterprises (wastewater customers). Commercial wastewater customers include all commercial, industrial, government and other public agencies, master-metered residential, and all other accounts or customers not classified as individually metered residential customers.

The wastewater customer's monthly bill for wastewater collection, treatment and disposal services (sewer service) shall be based upon the sum of: i) the base charge; and ii) the wastewater treatment charge calculated based on water meter readings at the customer premise. The base charge shall serve as the minimum monthly bill for sewer service for all customers receiving wastewater service from Alexandria Renew Enterprises.

Wastewater Treatment Charge - A charge per 1,-000 gallons of water consumption will be billed monthly for wastewater customers at the rates shown below.



Operating Fund Explanatory Notes Under the Master Trust, the Operating Fund shall pay operating expenses for administration and operation and maintenance of the Wastewater Treatment system as they become due and in accordance with the purposes and amounts provided in the Budget. The following notes provide additional information for the Budget: Beginning & Ending Balance “Reserve”:

The Financial Policy provides for an operating reserve equal to or greater than 120 days of the operating expenses budgeted for the current fiscal year.

Personnel Services:

Includes all compensation related items; health and welfare; personal safety shoes and other required personal protective equipment and clothing; training and professional development; licensing and dues. This element of the operating budget is about 51% of the total estimated expenditures.

Fuel, Power & Utilities:

Includes costs for the natural gas, electricity and water to run the plant. Equipment:

All preventative and corrective maintenance for infrastructure assets are included in this category as required by the Trust Indenture. This category also includes general safety equipment.

Process Chemicals:

All chemicals needed to control process and meet all regulatory compliance obligations. Product Support:

Ancillary services required to ensure clean, safe water. Laboratory testing, biosolids reuse, and grit disposal from the wastewater are included.

Business Support: This category includes software and licenses; billing collection fees; office supplies; telephone and communications; office equipment; property and liability insurance; and community education and outreach.

Professional Services:

Legal, financial, and engineering firms used to support annual program needs and support operational efficiency.

External Wastewater Services:

The cost of supporting the operations and maintenance associated with the City of Alexandria’s allocated capacity at the Arlington County Water Pollution Control Plant.



OPERATING FUND BUDGET FY 2016

FY 2014 FY 2015 % Change $ ChangeActual Final Budget FY 2016 Budget FY15 to FY16 FY15 to FY16

Revenues and Other Sources:Transfers from Revenue Fund 25,538,000$ 25,072,495$ 25,829,891$ 3.02% 757,396$ Transfers from Revenue Fund - Financial Policy - - - 100.00% - Investment Income 8,844 5,000 5,000 0.00% -

Total 25,546,844$ 25,077,495$ 25,834,891$ 3.02% 757,396$

Expenditures: Personnel Services 13,063,195$ 13,511,987$ 13,138,385 -2.76% (373,602)$ Fuel, Power & Utilities 3,224,653 3,057,508 3,172,751 3.77% 115,243 Operations Maintenance 806,783 787,500 839,000 6.54% 51,500 Chemicals 1,660,137 1,500,000 1,480,000 -1.33% (20,000) Product Support 1,447,796 1,603,000 1,597,500 -0.34% (5,500) Business Support 1,399,477 1,528,000 2,337,292 52.96% 809,292 Professional Services 1,438,891 1,399,500 1,336,500 -4.50% (63,000) Arlington Sewage Disposal 1,641,233 1,685,000 1,928,463 14.45% 243,463

Total 24,682,165$ 25,072,495$ 25,829,891$ 3.02% 757,396$

Excess (Deficiency) of Revenues over Expenditures 864,679$ 5,000$ 5,000$ 0.01% 0$

Fund Balance - Beginning 7,970,810$ 7,975,810$ 5,000$ Fund Balance - Ending 7,970,810$ 7,975,810$ 7,980,810$ 5,000$



Workforce Overview The FY 2016 proposed budget fully funds all filled positions and all vacant positions.

Department

FY 2014 Actual

FY 2015 Adopted

FY 2016 Proposed

Executive

11 6 2

Communications 0 3 6

Finance

8 8 7

Human Resources

5 5 5

Sustainability

7 6 9

Engineering & Technology

8 9 8

Process

5 7 8

Operations

24 27 35

Maintenance

42 36 30

TOTAL

110 106 110



Parity Debt Service Fund Explanatory Notes The Parity Debt Service Fund was created by the Master Trust to provide for the payment of principal and interest on outstanding debt. The Alexandria Renew Enterprises’ borrowing from the Virginia Revolving Loan Fund (VRLF), through its financial administrator the Virginia Resources Authority (VRA), is considered parity debt under the Master Trust. It is anticipated that Alexandria Renew will require additional financing to design and construct nitrogen removal called the State-of-the-Art Nitrogen Upgrade Program (SANUP). Design is underway on several projects within the program; construction projects began in FY 2011. The following notes provide additional information for the Budget: Transfers from the Revenue Fund are made to fund the required principal and interest

payments on March 1st and September 1st.



FY 2015 2014 Actual Final Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget

REVENUESTransfers from Revene Fund 11,934,335$ 12,212,564$ 13,050,500$ 14,997,856$ 15,000,389$ 14,950,000 Investment Income 88,684 60,000 10,000 20,000 10,000 5,000

Total Revenue 12,023,019$ 12,272,564$ 13,060,500$ 15,017,856$ 15,010,389$ 14,955,000

EXPENDITURESBANK FEES 462$ -$ -$ -$ -$ VRA BD SERIES 98A INTEREST 72,146 59,875 46,315 32,433 18,224 3,679 VRA BD SERIES 98A PRINCIPAL 560,430 573,677 587,238 601,119 615,328 313,098 VRA BD SERIES 00A INTEREST 343,266 296,322 243,950 189,728 133,592 75,474 VRA BD SERIES 00A PRINCIPAL 1,432,791 1,483,377 1,535,750 1,589,972 1,646,107 1,646,107 VRA BD SERIES 00B INTEREST 1,493,682 1,384,108 1,260,432 1,131,823 998,084 859,010 VRA BD SERIES 00B PRINCIPAL 3,058,915 3,180,936 3,307,823 3,439,773 3,576,985 4,040,116 VRA BOND SERIES 04 INTEREST 415,270 384,583 350,229 314,802 278,268 240,593 VRA BOND SERIES 04 PRINCIPAL 1,066,355 1,099,668 1,134,022 1,169,449 1,205,983 1,243,657 VRA BD SERIES 06 INTEREST 266,382 54,444 230,545 211,299 191,559 191,559 VRA BD SERIES 06 PRINCIPAL 725,510 155,676 762,573 781,819 801,559 801,559 VRA BOND SERIES 2008B INTEREST 490,270 194,867 34,109 412,297 402,047 402,047 VRA BOND SERIES 2008B PRINCIPAL 175,000 588,132 185,000 195,000 205,000 205,000 VRA BOND SERIES 2009 INTEREST 448,459 20,000 330,014 311,506 292,490 272,954 VRA BOND SERIES 2009 PRINCIPAL 622,286 - 675,863 694,372 713,388 732,924 VRA BOND SERIES 2011 INTEREST 174,997 455,323 176,813 168,679 160,346 151,808 VRA BOND SERIES 2011 PRINCIPAL 169,518 617,178 344,397 352,531 360,864 369,402 VRA BOND SERIES 2014A Interest 21,210 184,772 524,338 254,249 243,055 231,625 VRA BOND SERIES 2014A PRINCIPAL - 336,438 261,011 530,273 541,467 552,897 VRA BOND Reclaimed SERIES 2014B Interest 89 239,351 158 69,631 66,464 63,265 VRA BOND Reclaimed SERIES 2014B PRINCIPAL - - 156,747 150,035 153,208 156,407 VRA BOND SERIES 2014 C Interest - 37,878 888,210 887,591 886,897 886,127 VRA BOND SERIES 2014 C PRINCIPAL - 850,000 15,000 15,000 15,000 15,000 2016 bonds issued in last quarter 2016 INTEREST - - 425,000 829,312 800,742 770,945 2016 bonds issued in last quarter 2016 PRINCIPAL - - 322,238 665,163 693,732 723,529 TOTAL EXPENSES 11,537,036 12,196,605 13,797,775 14,997,856 15,000,389 14,948,781

Excess (Deficit) 485,983 75,959 (737,275) 20,000 10,000 6,219

Fund Balance - Beginning 1,779,700 2,265,683 2,341,642 1,604,367 1,624,367 1,634,367

Fund Balance - Ending 2,265,683 2,341,642 1,604,367 1,624,367 1,634,367 1,640,586

Parity Fund Budget FY 2016



Joint Improvement, Renewal & Replacement Explanatory Notes The Joint Improvement, Renewal & Replacement (IRR) Fund provides for payment of capital improvements, renewals and replacements for portions of the system and facility used jointly by the City of Alexandria and Fairfax County. Those improvements for portions of the system within the City of Alexandria only are budgeted in a separate category within the General Fund. The contribution to the IRR Fund is 0.7% of the total amount of capital expenditures made subsequent to October 1, 1997, for the joint portion of the system, as set forth by the service agreement with Fairfax County. A number of projects that Alexandria Renew will be working on during FY 2016 are identified. Projects include planned overhauls and maintenance on critical equipment, energy efficiency and alternative energy generation projects, information technology projects, and required asset replacements.



JOINT IR & R BUDGET FY 2016

Approved ProposedFY 2014 FY 2015 FY 2016 % Change $ ChangeActual Budget Budget FY15 to FY16 FY15 to FY16

Revenues and Other Sources: Transfer from Revenue Fund 1,382,000$ 1,456,433$ 1,791,702$ 23.02% 335,269$ Contribution from Fairfax County 2,073,000 2,184,600 2,670,308 22.23% 485,708 Investment Income 5,576 12,000 60,000 400.00% 48,000

Total 3,460,576$ 3,653,033$ 4,522,009$ 23.79% 868,976$

Expenditures:Interceptors, Pump Station, and Chemical Feed 1,486,973$ 388,000$ 955,000$ 146.13% 567,000 BRB's, Air Systems, UV 507,020 548,000 583,000 6.39% 35,000 Thickening, Prepast, Digester, Dewatering 593,873 594,000 1,378,000 131.99% 784,000 Campus - HVAC, Fire & Gas Detection 637,684 544,000 1,740,000 219.85% 1,196,000 Engineering - Non-nutrient Related 239,896 1,935,000 325,000 -83.20% (1,610,000) Information Systems 829,705 905,000 525,000 -41.99% (380,000) Human Resources/Laboratory - 117,000 320,000 173.50% 203,000 Processing - 309,000 270,000 0.00% (39,000) Security - Construction - - - 0.00% - Previous Year Carryover - 605,000 - 100.00% (605,000)

Total 4,295,151$ 5,945,000$ 6,096,000$ 2.54% 151,000$

Excess (Deficiency) of Revenues over Expenditures (834,575)$ (2,291,967)$ (1,573,991)$ -31.33% 717,976$

Fund Balance - Beginning 10,629,987$ 8,338,020$

Fund Balance - Ending 8,338,020$ 6,764,029$



General Fund Explanatory Notes The General Fund serves as reserve fund to be used for any lawful purpose of the Authority. Deposits to the General Fund are made from the Revenue Fund after all other fund expenditures and requirements have been satisfied. Alexandria Renew principally uses the General Fund to finance its specific capital improvements, provide sufficient reserves in order to maintain strong credit worthiness, and account for unanticipated expenditures experienced by Alexandria Renew in its normal course of operation. The General Fund is used by Alexandria Renew for the following main purposes:

Alexandria-only capital improvements (CIP);

Alexandria-only improvement, renewal and replacement (IRR);

Alexandria CIP commitments to the Arlington County Water Pollution Control Plant; and

As a resource for planning and future needs of a non-routine nature. For FY 2016, a contribution is made to the General IR&R category, equaling 4.87% of the total amount of expenditures for capital improvements within the City of Alexandria only.



GENERAL FUND BUDGET FY 2016

Approved ProposedFY 2014 FY 2015 FY 2016 % Change % ChangeActual Budget Budget FY14 to FY15 FY14 to FY15

Revenues and Other Sources: Transfers from Revenue Fund 9,615,500$ 8,847,918$ 8,445,137$ -4.55% (402,781)$ Investment Income 196,248 100,000 100,000 0.00% - PAYMENTS FROM FAIRFAX COUNTY 48,153 - - - PAYMENT FROM ALEXANDRIA CITY 146,105 - - - Grant Revenues - 4,021,452 - -100.00% (4,021,452) Debt Proceeds - - 20,000,000 20,000,000 Transfer to Parity (395,000) - - -

Total 9,611,006$ 12,969,370$ 28,545,137$ 120.10% 15,575,767$

Expenditures: Capital Improvement Program (CIP)

Potomac Interceptor Rehab -$ 250,000$ 250,000$ 0.00% -$ Four Mile Run Pump Station 2,660,467 4,100,000 1,400,000 -65.85% (2,700,000) Potomac Yard Interceptor Rehab - - 175,000 175,000 Collections Systems 93,029 - 6,000 0.00% 6,000 Collections Systems Repair 40,052 - - - Environmental Center 158,135 1,030,000 150,000 100.00% (880,000) Athletic Field 17,726 1,150,000 100,000 -91.30% (1,050,000) Meters 61,866 50,000 50,000 0.00% - Arlington County 848,192 641,410 1,391,115 116.88% 749,705 Flow Monitoring/GIS - 75,000 300,000 0.00% 225,000 Other Professional Studies - - 6,000 0.00% 6,000 Credit Line Interest 8,695 75,000 75,000 0.00% - Bank Fees 10,527 13,500 10,000 -25.93% (3,500) Finance Fees 32,361 410,000 410,000 0.00% -

Total 3,931,050$ 7,794,910$ 4,323,115$ -44.54% (3,471,795)$

Use of Fund BalanceUse of Land Proceeds 2,776,000$ 10,148,156$ -$ -100.00% (10,148,156)$

Transfer to Project Fund 1,050,777 13,000,000 20,375,500 56.73% 7,375,500 3,826,777$ 23,148,156$ 20,375,500$ -11.98% (2,772,656)$

Excess (Deficiency) of Revenues over Expenditures 1,853,179$ (17,973,696)$ 3,846,522$

Fund Balance - Beginning 22,721,747$ 4,748,051$

Fund Balance - Ending 4,748,051$ 8,594,573$



GENERAL FUND IR & R BUDGET FY 2016Approved Proposed

FY 2014 FY 2015 Fy 2016 % Change $ Change OrigActual Budget Budget FY15 to FY16 FY15 to FY16

Revenues and Other Sources: Transfer from Revenue Fund 233,400$ 356,700$ 356,700$ 0.00% -$

Total 233,400$ 356,700$ 356,700$ 0.00% -$

Expenditures:Commonwealth CCTV and Cleaning 2,840$ -$ -$ -$ Flow Monitoring/GIS - 75,000 300,000 225,000 Potomac Yards CCTV and Cleaning 18,284 - 175,000 175,000 Potomac Interceptor CCTV and Cleaning 18,928 250,000 - -100.00% (250,000)

Total 40,052$ 325,000$ 475,000$ 46.15% 150,000$

Excess (Deficiency) of Revenues over Expenditures 193,348$ 31,700$ (118,300)$ -473.19% (150,000)$

Fund Balance - Beginning 619,760$ 813,108$ 844,808$

Fund Balance - Ending 813,108$ 844,808$ 726,508$



Project Fund Explanatory Notes Capital Improvement Program (CIP) AlexRenew manages its Project Fund, both joint and City only, using a Capital Improvement Program (CIP). The plans for current and future capital projects, both joint and City only, at AlexRenew are summarized in a Ten-Year Plan. The CIP is a key element in planning and managing future compliance through large capital investments. This plan identifies cash needs as required by our Financial Policy, allowing for rate stability by forecasting future debt service. The Ten-Year Plan is an important tool used for formulating future project financing plans, maximizing federal and state grant opportunities, proactively planning for the replacement or reconstruction of essential assets that are nearing the end of their service life, and scheduling and coordinating execution of multiple projects to minimize operational impact. Only the first year of the Ten-Year CIP (FY 2015) represents a funding commitment for a project. Definition of Capital Projects A capital project involves expenditures to acquire or add assets of a relatively permanent nature such as property, plant and equipment. The CIP is typically used for large capital projects, new facilities, expansions and improvements requiring engineering and/or construction services such as:

Studies preceding or likely to result in new facilities; New administrative facilities, expansions, major improvements and major

renovations; New pump stations and major improvements; New pipelines, replacements and major rehabilitations; New treatment plants, expansions and major improvements; and Studies or projects which will take multiple years to complete.

Funding of Capital Improvement Projects The CIP for joint projects is funded through the Project Fund. It can be for joint projects (facilities that are joint use with Fairfax and Alexandria). Fairfax funds 60% of the cost of the project on a cash reimbursement basis unless negotiated separately. The remaining 40% is funded from the General Fund. The CIP for City only projects is fully funded out of the General Fund. It does not include day-to-day maintenance expenditures or routine renewal and replacement of assets. Funding sources into the General Fund for CIP projects include loans from the Virginia Department of Environmental Quality (VA DEQ) Wastewater Revolving Loan Fund (WRLF); the Virginia Water Quality Improvement Fund (VA WQIF) Point Source Grant; the United States Environmental Protection Agency (US EPA) Special Appropriations Grant; and AlexRenew discretionary funds.



Approved ProposedFY 2014 FY 2015 FY 2016Actual Budget Budget FY 2017 FY 2018 FY 2019

Revenues and Other Sources:Payments from Fairfax County 41,901,391$ 41,183,537$ 23,469,500$ 15,003,000$ 12,501,000$ 10,212,600$ Transfers from General Fund 1,050,777 13,000,000 375,500 10,500,000 11,600,000 16,000,000 Grant 8,075,005 - - - - - VRA Bonds Series 2011 14,079,979 - - - - - VRA -Reclaimed Water - 2,500,000 - - - - VRA - Package C - - - - - - Additional Bonds - Series 2015- Series 2016- Series 2017 - 13,000,000 20,000,000 - - - General Fund Land Sale Proceeds Alex Only 2,776,000 10,148,156 - - - - Total 67,883,152$ 79,831,693$ 43,845,000$ 25,503,000$ 24,101,000$ 26,212,600$

Expenditures:SANUP Package B - Centrate Pretreatment 2,000,863$ 1,518,000$ $420,000 -$ -$ -$ SANUP Package C - Nutrient Management Facility 52,038,816 34,981,317 3,725,000 - - - SANUP Package D - Biological Reactor Basin 6 1,368,813 5,000 800,000 - - - Mainstream Deammonification 259,728 2,700,000 4,595,000 - - - Reclaimed Water Disinfection, Booster Pump Station 5,669,093 2,825,000 - - - - Reclaimed Water Distribution Line - Eisenhower Ave. 79,524 5,000 - - 150,000 $150,000Raw Sewage Pump Station 784,426 490,000 - - - - UV Disinfection System Upgrade 93,078 500,000 3,900,000 4,000,000 - - Scum System Upgrade - - 250,000 1,500,000 1,500,000 - Supervisory Control and Data Acquisition System Upgrade - 250,000 1,250,000 - - - Switchgear C Replacement 2,245,466 150,000 - - - - Switchgear 1A Replacement 755,367 320,000 - - - - Plant Electrical Reliability - 125,000 1,500,000 1,500,000 500,000 - Process Automation Improvements - - - 500,000 750,000 2,000,000 Influent Screening System Upgrade - - - 250,000 3,000,000 3,000,000 Process Air Compressor (PAC) Blower Replacement - - 1,750,000 1,750,000 - - Emergency Notification System 290,000 660,000 500,000 - - - PLC Upgrade 182,531 500,000 500,000 500,000 500,000 - Information Technology - - 1,275,000 1,425,000 1,225,000 1,050,000 Facility Masterplan and Associated Improvements - 150,000 1,300,000 4,500,000 4,500,000 - Stormwater Rehabilitation Program - 150,000 750,000 250,000 - - Commonwealth Interceptor Pile Intrusion Repair - - 275,000 2,000,000 1,850,000 - Solids Master Plan Update and Associated Improvements 198,633 15,000 - 250,000 2,500,000 5,000,000 Long Range Plan Update and Associated Improvements - - 200,000 250,000 250,000 5,000,000 Wet Weather Management Strategy 1,964,550 450,000 4,200,000 6,050,000 7,150,000 10,250,000 Security During Construction 182,660 184,745 280,000 280,000 280,000 280,000 Bank Fees 416 1,000 1,000 - - -

Subtotal 68,113,963$ 45,980,062$ 27,471,000$ 25,005,000$ 24,155,000$ 26,730,000$ Environmental Center 4,063,180$ 25,000,000$ 12,500,000$ -$ -$ -$ Deck Connector 1,589,217 5,175,000 3,375,000 - - - Contra - Renew Environmental Center - - - - - -

Subtotal 5,652,397 30,175,000$ 15,875,000$ -$ -$ -$ Total Expenditures 73,766,360$ 76,155,062$ 43,346,000$ 25,005,000$ 24,155,000$ 26,730,000$

Excess (Deficiency) of Revenues over Expenditures (5,883,208)$ 3,676,631$ 499,000$ 498,000$ (54,000)$ (517,400)$

Fund Balance - Beginning 4,082,630$ 7,759,261$ 8,258,261$ 8,756,261$ 8,702,261$

Fund Balance - Ending 7,759,261$ 8,258,261$ 8,756,261$ 8,702,261$ 8,184,861$

Forecast

PROJECT FUND BUDGET FY 2016



Project Fund Summary Sources for Joint CIP The Alexandria Renew Enterprises proposed Joint Capital Improvement Plan for FY 2016 utilizes a combination of cash transfers from the General Fund, capital contributions from Fairfax County, Virginia Resources Authority loans, and bond proceeds.

ProposedProject Fund FY 2016 FY 2017 FY 2018 FY 2019 TotalSources of Funds

Contributions from Fairfax County 23,469,500$ 15,003,000$ 12,501,000$ 10,212,600$ 61,186,100$ Transfers from General Fund 375,500 10,500,000 11,600,000 16,000,000 38,475,500$ Grant - - - - -$ VRA- Reclaim Water - - - - -$ VRA - Package C - - - - -$ Additional Bonds - Series 2015, 2016, 2017 20,000,000 - - - 20,000,000$

Grand Total: All Capital Funding 43,845,000$ 25,503,000$ 24,101,000$ 26,212,600$ 119,661,600$

FY 2016 - 2019 Capital Improvement Plan Funding Sources:Summary By Fund

Forecasted



FY 2016 Capital Improvement Program Overview

The Alexandria Renew Enterprises proposed Joint Capital Improvement Plan for FY 2016 continues funding for the design and construction of nitrogen removal called the State-of-the-Art Nitrogen Upgrade Program (SANUP), which accounts for 55.23% of the total Capital Project Fund.



Alexandria Only Capital Improvement Program (CIP) Details Capital Improvement Program (CIP) Budget Detail Sheets The following pages contain Capital Improvement Program (CIP) detail sheets for each FY 2016 project. These detail sheets include a project description and summary of sources and uses of funds.

FY 2016 Capital Improvement Program – Alexandria Only

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Four Mile Run Pump Station Upgrade Project Potomac Interceptor Rehabilitation Project Environmental Center – Educational Areas and Public Restrooms

SANUP Package C – Nutrient Management Facility – Athletic Field



Four Mile Run Pump Station Upgrade Project

Managing Department Project Location Project Category Estimated Useful Life Engineering Arlandria, Del Ray Alexandria Only CIP Submersible Pumps: 10 years

Centrifugal Pumps: 20 years Planned Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $5,346,505 $1,400,000 Financing AlexRenew $1,400,000 Fairfax VRLF or VRA $3,375,532 Grant Line of Credit $1,970,973

Project Description and Justification Strategic Outcome Area

The Four Mile Run Pump Station was originally constructed in 1954 and has reached the end of its useful life. Improvements to the facility are needed to minimize wet weather impacts. In addition, the building requires electrical improvements to ensure compliance with current code requirements. Planned improvements include replacing two, non-submersible pumps; the installation of a new dimminutor (grinder) to screen solids and grind rags and other debris, and electrical upgrades. In addition, in response to community feedback, AlexRenew will design and construct an educational exhibit that will be displayed along the fence of the pump station and inform the public about what they can do to protect the environment and inspire water stewardship. Construction commenced in FY 2014 and will be completed in FY 2016.

This project supports the Board of Directors’ strategic outcomes for: • Operational Excellence

Impact on Operations

The operating and maintenance costs associated with this facility will remain the same.



Potomac Interceptor Rehabilitation Project

Managing Department Project Location Project Category Estimated Useful Life Engineering Old Town Alexandria Only CIP 30 years

Planned Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $250,000 $250,000 Financing AlexRenew $250,000 $250,000 Fairfax VRLF Grant Line of Credit


Constructed in the early 1950s, the Potomac Interceptor is one of the three, original large diameter sewers that were built to convey wastewater from the City of Alexandria to AlexRenew’s water resource recovery facility.

Rehabilitation of portions of the Potomac Interceptor is necessary to correct deficiencies in the pipeline and manholes. These deficiencies are identified through a combination of Closed Circuit Television (CCTV) inspection, hydraulic modeling, and/or field inspection reports. Potential rehabilitation strategies include point repair and cured-in-place-pipe (CIPP) lining, among other activities. Rehabilitation of the Potomac Interceptor will extend its useful life and improve conveyance capacity. This project will also protect against catastrophic failure, such as pipe collapse. CCTV inspection and cleaning of the Potomac Interceptor began in FY 2015 as part of the IRR program. The rehabilitation program will be implemented as part of the CIP in FY 2016.



This project will reduce annual maintenance costs.



Environmental Center – Educational Areas and Public Restrooms

Managing Department Project Location Project Category Estimated Useful Life Engineering West Plant Alexandria Only CIP 30 years


Total $29,063,180 $12,500,000 Financing AlexRenew $12,924,156 $2,342,522 Fairfax $14,420,958 $6,125,000 VRLF Grant Line of Credit $1,898,066 $4,032,478


In support of the Eisenhower East Small Area Plan and strategy for the South Carlyle area development, AlexRenew is designing and constructing a new Administration Building referred to as the “Environmental Center”. This project will result in a 60,000 square foot, LEED and Energy Star-certified, office building. The building will include office space and support amenities for various administrative functions, a visitor center, and public restrooms for the adjacent soccer field that is being constructed on top of the Nutrient Management Facility (NMF). This portion of the project pertains to the visitor center and public restrooms. Costs associated with these portions of the building will be borne by AlexRenew only. Design and permitting of the new Administration Building was completed during FY 2014. Construction commenced in FY 2014 under a Construction Manager at Risk (CMAR) contract. Construction will be completed in FY 2016.

This project supports the Board of Directors’ strategic outcomes for: • Community Engagement


The City of Alexandria will be responsible for the operations and maintenance costs associated with the Public Restroom area accessible to individuals using the soccer field.



SANUP Package C - Nutrient Management Facility – Athletic Field

Managing Department Project Location Project Category Estimated Useful Life Engineering West Plant Alexandria Only CIP Synthetic Turf: 8-10 years


Total $17,726 $1,150,000 Financing AlexRenew Fairfax VRLF Grant Line of Credit $1,150,000


In response to feedback provided by the City of Alexandria and various stakeholders during the Development Special Use Permit (DSUP) process for the Nutrient Management Facility (NMF), a synthetic turf soccer field will be placed on top of the NMF.

In the early phases of the NMF design, above ground, cylindrical tanks were proposed. This initial design concept was rejected by the City of Alexandria and various design review boards, because it was deemed incompatible with the Eisenhower East Small Area Plan. In response to the feedback that AlexRenew received from the City of Alexandria during the DSUP process, the NMF tanks were switched to rectangular and moved to a lower elevation with only a 10 foot projection of the overall structure above grade. In addition, a regulation soccer field was incorporated into the design.

Costs associated with the design and construction of the soccer field are allocated to AlexRenew only.



The soccer field will be operated and maintained by the City of Alexandria. The project will not increase operations or maintenance costs.



Joint Capital Improvement Program (CIP) Details Capital Improvement Program (CIP) Budget Detail Sheets The following pages contain Capital Improvement Program (CIP) detail sheets for each FY 2016 project. These detail sheets include a project description and summary of sources and uses of funds.

FY 2016 Capital Improvement Program – Joint Use Projects

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SANUP Package B - Centrate Pretreatment and Final Effluent Flow Measurement

SANUP Package C – Nutrient Management Facility SANUP Package D – Biological Reactor Basin 6 Mainstream Anammox Wet Weather Management Strategy UV Disinfection System Upgrade Environmental Center Deck Connector Scum System Upgrade Long Range Plan Update Process Air Compressor (Blower) Replacement Plant Electrical Service Reliability Improvements PLC Upgrade Supervisory Control And Data Acquisition System Upgrade

Emergency Notification System Information Technology Facilities Master Plan and Associated Improvements

Main Plant Stormwater Rehabilitation Program Main Plant Commonwealth Interceptor Pile



SANUP Package B - Centrate Pretreatment and Final Effluent Flow Measurement

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant (Building 69)

Joint CIP

Pumps: 4–6 years Hydrocyclones: 15-20 years

Structure: 30 years Planned Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $19,424,223 $420,000 Financing AlexRenew $766,599 $168,000 Fairfax $11,654,534 $252,000 VRLF $4,356,277 Grant $2,646,813 Line of Credit $0

Project Description and Justification Strategic Outcome Area(s)

In 2008, AlexRenew underwent a comprehensive, long-range planning process to develop a strategy for compliance with the regulatory requirements for Total Nitrogen and Total Phosphorous removal and to address other future drivers. The State-of-the-Art Nitrogen Upgrade Program (SANUP) emerged from this planning process.

SANUP Package B involves the construction of a new Centrate Pretreatment (CPT) facility, designed with the purpose of reducing nitrogen content in the dewatering centrate prior to flow being routed into the Biological Reactor Basins. The project also includes the installation of effluent flow monitoring.

This project will help AlexRenew meet its Total Nitrogen (TN) effluent concentration limits more reliably. In addition, the installation of effluent flow monitoring will support AlexRenew’s participation in the nutrient credit exchange program.

Commissioning activities will continue into FY 2016.

This project supports the Board of Directors’ strategic outcomes for: • Innovation Incubator


This project is expected to reduce operations and maintenance costs over time.



SANUP Package C – Nutrient Management Facility

Managing Department Project Location Project Category Estimated Useful Life Engineering West Plant Joint CIP Holding Tanks - 50+ years

Process Equipment - 25+ years Planned

Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $113,383,817 $3,725,000 Financing

AlexRenew $17,839,631 $1,490,000 Fairfax $68,030,290 $2,235,000 VRLF $12,500,000 Grant $13,046,895

Line of Credit $1,967,001


The Nutrient Management Facility (NMF) is an 18 million gallon storage facility designed to manage and balance ammonia nitrogen loads to the biological system. The facility will assist AlexRenew with meeting its permit limits for Total Nitrogen more reliably. The facility has four 4.5 MG tanks with associated pump, meters and controls to accept and return flows. It also includes an odor control system. Most of the tank area is below grade and the facility is topped off with a lighted athletic field that will be used by the City of Alexandria Parks and Recreation Department. The project will be commissioned and closed-out in FY 2016.



The project will reduce operations and maintenance costs, including reductions in methanol use and electric power consumption at the Main Plant site.



SANUP Package D – Biological Reactor Basin 6

Managing Department Project Location Project Category Estimated Useful Life Operations Main Plant

Joint CIP 30 Years


Total $16,376,023 $800,000 Financing AlexRenew $550,489 $320,000 Fairfax $9,825,614 $480,000 RLF $3,444,110 Grant $2,555,810 Line of Credit


This project involves adding new aeration grid at the end of Biological Reactor Basin 6 (BRB 6) and also incorporating additional foam control spray nozzles into BRB6. This work will add final ammonia polishing capability to BRB6 and will achieve better foam control. Design and construction is scheduled to be accomplished in FY 2016.



This project will reduce future operations and maintenance costs and improve process performance.



Mainstream Anammox

Managing Department Project Location Project Category Estimated Useful Life Operations Main Plant Joint CIP Diffuser Membrane 8-12 Years

Gravity Thickener 20-30 Years Primary Sludge Pumps 20-30

Years Planned Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $2,257,030 $4,595,000 Financing AlexRenew Fairfax $1,354,218 $2,757,000 VRLF Grant Line of Credit $902,812 $1,838,000


This project involves Phase II of Mainstream Deammonification project and consists of 1) Replacing diffuser membranes in Biological Reactor Basins (BRB) 2 – 5; 2) Gravity Thickener Upgrade; 3) Primary Sludge Pump Upgrade.

AlexRenew’s BRB diffuser membranes, gravity thickeners and primary sludge pumps are all approaching their useful lives, and require replacement to ensure efficiency and meet increased sludge processing requirements associated with implementation of our Mainstream Anammox project. Replacing diffuser membranes will greatly improve aeration efficiency. Gravity thickener and primary sludge pump upgrades will address solids processing challenges including ragging and increased solids production. Diffuser membrane replacement task should be accomplished in FY2016. Design for gravity thickener and primary sludge pump upgrades should also be accomplished in FY 2016.



This project will reduce future operations and maintenance costs, particularly in the area of energy savings, and improve process performance.



Wet Weather Management Strategy

Managing Department Project Location Project Category Estimated Useful Life Engineering Old Town Alexandria

Main Plant Joint CIP 30 years


Total $2,257,030 $4,200,000 $6,050,000 $7,150,000 $10,250,000 $12,250,000 $4,500,000 $4,000,000 $4,000,000 Financing AlexRenew $475,874 $2,420,000 $2,860,000 $2,860,000 $4,900,000 $1,800,000 $2,860,000 $1,600,000 Fairfax $1,354,218 $2,520,000 $3,630,000 $4,290,000 $4,290,000 $7,350,000 $2,700,000 $4,290,000 $2,400,000 VRLF $2,150,550 Grant Line of Credit $859,200


During wet weather events, flows in the collection system increase as a result of rainfall-derived inflows and infiltration into the combined and separate sewers located in AlexRenew’s service area. These flows have the potential to result in sewer backups and flooding of basements along some interceptors. Sanitary sewer overflows (SSOs) may also occur under these conditions. In 2010, AlexRenew, the City of Alexandria, and Fairfax County commissioned a study to develop feasible alternatives that could minimize SSOs and combined sewer overflows (CSOs), reduce basement backups, and provide conveyance and treatment capacity for future growth. That study recommended the design and construction of a wet weather pump station and storage tunnel, the elimination of the Hoof’s Run Junction Chamber SSO, and the relocation of the City of Alexandria’s CSO 004 from Duke Street to just outside AlexRenew’s treatment facility. This project provides a number of benefits, including reducing sanitary sewer backups in homes and businesses and reducing the impacts of SSOs and CSOs on the environment. In FY 2016, planning and coordination with other jurisdictions, as well as preliminary design, will occur. The final cost split between Fairfax County and AlexRenew/City of Alexandria is pending completion of the Wet Weather study, a decision on the final implementation of the strategy and negotiations on each jurisdiction’s share.

This project supports the Board of Directors’ vision for: • Watershed Partnerships Collectively Managed


The annual operations and maintenance costs associated with preliminary treatment will remain the same.



UV Disinfection System Upgrade

Managing Department Project Location Project Category Estimated Useful Life Engineering Building N Joint CIP 15 Years


Total $705,886 $3,900,000 $4,000,000 Financing AlexRenew Fairfax $423,532 $2,340,000 $4,000,000 VRLF $150,573 $1,600,000 Grant Line of Credit $1,560,000


This project involves the design and construction of a new UV disinfection system to replace the existing system, which is nearing the end of its useful life. The new UV system is intended to be retrofitted in existing channels replacing one channel at a time, while still maintaining adequate treatment and redundancy. This project will contribute to AlexRenew’s energy efficiency goals, as most UV models on the market are substantially more energy efficient than AlexRenew’s current UV system. In FY 2016, the project will be in construction.

This project supports the Board of Directors’ strategic outcomes: • Operational Excellence


This project will reduce operations and maintenance costs. It will result in less electrical usage for effluent disinfection. There are also fewer lamps to replace, reducing the maintenance of the system.



Environmental Center

Managing Department Project Location Project Category Estimated Useful Life Engineering West Plant Joint CIP Structure: 30 years

Interior Finishes: 10 – 15 years Planned Expenditure Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $29,063,180 $12,500,000 Financing AlexRenew $12,924,156 $2,342,522 Fairfax $14,240,958 $6,125,000 VRLF Grant Line of Credit $1,898,066 $4,032,478


In support of the Eisenhower East Small Area Plan and strategy for the South Carlyle area development, AlexRenew is designing and constructing a new Administration Building. This project will result in a 60,000 square foot, LEED and Energy Star-certified, office building. The building will include office space and support amenities for various administrative functions, a visitor center, and public restrooms for the adjacent soccer field that is being constructed on top of the Nutrient Management Facility (NMF). The costs associated with the joint use portions of the building will be allocated such that AlexRenew’s share will be 51% and Fairfax County’s share will be 49%. The final cost split between Fairfax County and AlexRenew is pending finalization of an agreement between the parties. The joint use portions of the new Administration Building do not include amenities associated with the visitor center and certain elements of the 6th floor. Construction commenced in FY 2014 under a Construction Manager at Risk (CMAR) contract. Construction and LEED commissioning will be completed in FY 2016.



The Environmental Center was designed to yield the lowest lifecycle costs in the long-term, as compared to alternative design scenarios. However, this project will result in a short-term increase in operations and maintenance, while both the Environmental Center and old administration building (Building J) remain operational.



Deck Connector

Managing Department Project Location Project Category Estimated Useful Life Engineering West Plant Joint CIP Structure: 30 years


Total $6,987,150 $3,375,000 Financing AlexRenew Fairfax $1,676,916 $810,000 VRLF $2,761,963 $3,113,271 Grant Line of Credit $2,000,000


In support of the development strategy for the South Carlyle area, AlexRenew is designing and constructing a connector deck that will contain garage parking for employees. An open space, landscaped deck will be constructed above the garage. The costs associated with this project will be allocated such that AlexRenew’s share will be 76% and Fairfax County’s share will be 24%. The final cost split between Fairfax County and AlexRenew is pending finalization of an agreement between the parties. Construction commenced in FY 2014 under a Construction Manager at Risk (CMAR) contract. Construction will be completed in FY 2016.



This project will result in a slight increase in operations and maintenance costs in the short term. These costs will be greater until such time that Carlyle Plaza II completes its development; afterward, operations and maintenance costs for the deck connector will be shared with an owner’s association that will be created to assume joint responsibility for long-term maintenance of this improvement.



Scum System Upgrade

Managing Department Project Location Project Category Estimated Useful Life Operations Main Plant Joint CIP 30 Years


Total $0 $250,000 $1,500,00 $1,500,000 Financing AlexRenew $100,000 $600,000 $600,000 Fairfax $150,000 $900,000 $900,000 VRLF Grant Line of Credit


This project involves an upgrade of the scum concentration system and secondary scum collection system. AlexRenew’s existing scum concentration and secondary scum collection system are insufficient to process current scum production and result in excessive accumulation of scum in our secondary treatment system. An upgrade of the scum system will increase scum processing capacity, improve scum collection and removal efficiency, and better meet our scum removal needs. Preliminary design for this project will be completed in FY 2016.



This project will reduce future operations and maintenance costs and improve process performance.



Long Range Plan Update

Managing Department Project Location Project Category Estimated Useful Life Operations Main Plant Joint CIP Major Equipment: 10-20 Years


Total $0 $200,000 $250,000 $250,000 $5,000,000 $5,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 Financing AlexRenew $80,000 $100,000 $100,000 $2,000,000 $2,000,000 $3,200,000 $3,200,000 $3,200,000 $3,200,000 $3,200,000 Fairfax $120,000 $150,000 $150,000 $3,000,000 $3,000,000 $4,800,000 $4,800,000 $4,800,000 $4,800,000 $4,800,000 VRLF Grant Line of Credit


AlexRenew initiated a long-range planning effort in 2008, in response to the need to upgrade its facilities to comply with changes in regulation that required that AlexRenew meet more stringent wasteload allocation requirements for Total Nitrogen and Total Phosphorous. The objective of the long-range planning effort was to ensure that the next phase of improvements not only complied with the changes in regulation, but also supported the organization’s mission and vision. The long-range plan is now more than five years old and requires. This project involves the initial planning effort required to facilitate an update of the long-range plan. In addition, this project includes an estimate of funding needed to facilitate future improvements to regulatory ensure compliance and continued commitment to AlexRenew’s mission, vision, and values.



This planning effort will help AlexRenew prioritize projects that will drive further efficiencies throughout the organization.



Process Air Compressor (Blower) Replacement

Managing Department Project Location Project Category Estimated Useful Life Operations Main Plant Joint CIP Major Equipment: 10-20 Years


Total $0 $1,750,000 $1,700,000 Financing AlexRenew $700,000 $680,000 Fairfax $1,050,000 $1,020,000 VRLF Grant Line of Credit


The current Process Air Compressor (Blower) system consists of five blowers designed to provide air to the Biological Reactor Basins (BRBs) for aeration and to the Secondary Settling Tanks (SSTs) for mixing. This project involves replacing two of the five blowers with High Speed Turbos over a two-year period. This project will improve energy efficiency and provide operational flexibility



This project will reduce operations and maintenance costs and provide significant energy-related savings.



Plant Electrical Service Reliability Improvements

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant

Remote Pump Stations Joint CIP 30 years


Total $125,000 $1,500,000 $1,500,000 $500,000 Financing AlexRenew $50,000 $0 $600,000 $200,000 Fairfax $75,000 $900,000 $900,000 $300,000 VRLF Grant Line of Credit $600,000


In FY 2015, AlexRenew initiated a Plant Electrical Service Reliability Assessment to provide condition and other critical information on the electrical power distribution system (including electrical equipment and feeders) at our Main Plant and remote pump stations. The evaluation will be completed at the end of FY 2015. In FY 2016, funds are needed for the design and construction of improvements associated with this study. Potential projects that may emerge from this analysis include additional switchgear upgrades, breaker replacement, and standby generator installation, among other activities focused on improving electrical service efficiency and reliability.



This project will result in more operational reliability. In addition, certain improvements will reduce the operations and maintenance costs, as the frequency of electrical service outages is reduced.



PLC UPGRADE

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant Joint CIP 15-20 Years


Total $0 $500,000 $500,000 $500,000 Financing AlexRenew $200,000 $200,000 Fairfax $300,000 $300,000 $300,000 VRLF or VRA $189,556 Grant Line of Credit $10,444


AlexRenew has about 20 Programmable Logic Controllers (PLCs) that will soon no longer be supported. This project involves the upgrade of our current control infrastructure and the replacement of the current Allen Bradly PLC 5 Processors. This project would include any upgrade of all associated hardware and software. This project will be implemented in a series of phases over the next three years to reduce impacts on current processes.



This project will result in more operational reliability.



SUPERVISORY CONTROL AND DATA ACQUISTION SYSTEM UPGRADE

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant Joint CIP 15 Years


Total $0 $1,250,000 $1,250,000 $1,250,000 Financing AlexRenew $500,000 $500,000 $500,000 Fairfax $750,000 $750,000 $750,000 VRLF Grant Line of Credit


AlexRenew’s SCADA system, which automates the monitoring and control of our treatment facility, requires an upgrade to resolve issues associated with certain custom features and to institute improvements in the data management, energy management, alarm/event management, and control logic. In addition, improvements in system access and security are needed. The development of Master Plan to guide SCADA upgrades and use commenced in FY 2015. In FY 2016, AlexRenew will finalize system requirements, analysis of SCADA alternatives, procure software, and complete the upgrade.



This project will result in more operational reliability. In addition, some savings will be achieved through a reduction in SCADA system maintenance-related costs.



Emergency Notification System

Managing Department Project Location Project Category Estimated Useful Life Human Resources Main Plant Joint CIP 10 years


Total $400,938 $500,000 Financing AlexRenew $160,375 $200,000 Fairfax $240,563 $300,000 VRLF Grant Line of Credit


This project involves the design and installation of an updated Emergency Alarm System that will notify employees campus wide (including in the tunnels) of various emergencies, such as natural disasters, chemical spills, etc. The alarm system is required per OSHA 1910.165. It will be comprised of speakers and strobes that will be installed throughout campus. In FY 2016, construction activity will continue in Building G and Building 69. This project will be completed in FY 2016.



This project will not impact operations or maintenance costs.



Information Technology

Managing Department Project Location Project Category Estimated Useful Life Human Resources Main Plant Joint CIP IT Equipment: 2-5 years

Planned Expenditure

Prior Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

Total $0 $1,275,000 $1,425,000 $1,225,000 $550,000 $500,000 $1,100,000 $675,000 $525,000 $750,000 $102,500 Financing AlexRenew $510,000 $570,000 $490,000 $220,000 $200,000 $440,000 $270,000 $210,000 $300,000 $410,000 Fairfax $765,000 $855,000 $735,000 $330,000 $300,000 $660,000 $405,000 $315,000 $450,000 $615,000 VRLF Grant Line of Credit


Network upgrades, security enhancements, and data management improvements are a continuing need for AlexRenew. Funds associated with the Information Technology category support these combined improvements in effort to enhance our information technology infrastructure. In FY 2016, funds will support network upgrades, database upgrades, disaster recovery plan implementation, and the implementation of an electronic records management system, among other activities.



Many of the projects associated with this area will provide operational efficiencies and improve the reliability of our information system.



Facilities Master Plan and Associated Improvements

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant Joint CIP Improvements: 20-30 years


Total $150,000 $1,300,000 $4,500,000 $4,500,000 $3,150,000 $3,000,000 Financing AlexRenew $60,000 $520,000 $1,800,000 $1,800,000 $1,260,000 $1,200,000 Fairfax $90,000 $780,000 $2,700,000 $2,700,000 $1,890,000 $1,800,000 VRLF Grant Line of Credit


A Facilities Master Plan is needed to guide further campus improvements, including the relocation of the laboratory. Our existing laboratory space was designed to accommodate a large staff of technicians and equipment that is either nearly obsolete or less efficient than modern versions of the technologies. In our pursuit of more sustainable and more accurate operations, there are opportunities for automation that can be enhanced by a suitably-designed workspace. The lab relocation provides an opportunity to optimize our resources and position AlexRenew for the future. In addition to the laboratory relocation, the Facilities Master Plan will include an evaluation of options for future capital investments that improve building energy efficiency and address structural defects. In FY 2015, initial planning commenced and a comprehensive survey of the East Plant was completed. In FY 2016, the Facilities Master Plan will be completed, improvement projects will be identified, and preliminary design will commence.

This project supports the Board of Directors’ strategic outcomes for: • Institutional Competency


This planning effort will help AlexRenew prioritize building-related improvement projects that have the potential to improve energy efficiency, implement sustainable design features throughout our campus, and reduce operations and maintenance costs.



Main Plant Stormwater Rehabilitation Program

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant Joint CIP 30 years


Total $0 $750,000 $250,000 Financing AlexRenew $300,000 $100,000 Fairfax $450,000 $150,000 VRLF Grant Line of Credit


AlexRenew’s facility has two, onsite stormwater systems: (1) to collect and divert runoff from the plant to Hoof’s Run and (2) to contain and convey process overflows back through the treatment process. This project focuses on an assessment of the condition of both systems, including a targeted evaluation to address ponding throughout the facility. In addition, during the evaluation staff will review stormwater runoff quality and identify alternate treatment facilities (e.g., rain gardens, bioretention ponds, roof gardens) to improve water quality and meet current and future stormwater permitting requirements. In FY 2015, the assessment was conducted using a CCTV inspection of the system piping and used to develop a rehabilitation plan. In FY2016, we will finalize the Stormwater Improvement Analysis Report. The report will be used to determine and implement rehabilitation project(s) and stormwater treatment improvement(s).



Improvements in on-site stormwater management will result in a reduction in operations and maintenance costs.



Main Plant Commonwealth Interceptor Pile Intrusion Repair

Managing Department Project Location Project Category Estimated Useful Life Engineering Main Plant Joint CIP 30 years


Total $275,000 $275,000 $2,000,000 $1,850,000 Financing AlexRenew $110,000 $110,000 $800,000 $740,000 Fairfax $165,000 $165,000 $1,200,000 $1,110,000 VRLF Grant Line of Credit


The Commonwealth Interceptor (CI) is one of the original intercepting sewers of the Alexandria Renew Enterprises (ARenew) interceptor system, construction of which commenced in 1954. The main portion of the Commonwealth Interceptor conveys flows from the Four Mile Run Pump Station and the contributing sewersheds along Commonwealth Avenue and in to ARenew’s Water Resources Recovery Facility (WRRF). The CI crosses through the WRRF site to Control Structure No. 1, located just upstream of the Screenings Facility and Raw Sewage Pump Station. Rehabilitation of this sewer is necessary due to an intrusion into the 72” pipe. The intrusion appears to be one of the 50-ton steel H piles supporting our odorous air system. Design and construction activities will occur in FY 2016.



This project will not affect operations or maintenance costs.



Ten-Year Capital Improvement Plan

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected

ALEXANDRIA ONLYFour Mile Run Pump Station Upgrade $1,400,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Potomac Interceptor Rehabilitation $250,000 $0 $0 $0 $0 $250,000 $0 $0 $0 $0Commonwealth Interceptor Rehabilitation $0 $50,000 $500,000 $0 $0 $0 $0 $0 $0 $0Potomac Yards Trunk Sewer Rehabilitation $0 $0 $50,000 $500,000 $0 $0 $0 $0 $0 $0Wet Weather Management Strategy $0 $1,500,000 $2,500,000 $2,500,000 $0 $0 $0 $0 $0 $0Environmental Center - Educational Areas and Public Restrooms $150,000 $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0Nutrient Management Facility - Athletic Field $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Arlington County Capital Contribution $1,134,000 $1,093,000 $1,066,000 $345,000 $355,000 $366,000 $377,000 $388,000 $399,000 $399,000Subtotal $3,034,000 $3,643,000 $4,116,000 $3,345,000 $355,000 $616,000 $377,000 $388,000 $399,000 $399,000

JOINT USESANUP Package B - Centrate Pretreatment Facility $420,000 $0 $0 $0 $0 $0 $0 $0 $0 $0SANUP Package C - Nutrient Management Facility $3,725,000 $0 $0 $0 $0 $0 $0 $0 $0 $0SANUP Package D - Biological Reactor Basin 6 $800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Mainstream Deammonification $4,595,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Wet Weather Management Strategy $4,200,000 $6,050,000 $7,150,000 $10,250,000 $12,250,000 $4,500,000 $4,000,000 $4,000,000 $0 $0Ultraviolet (UV) Disinfection System Upgrade $3,900,000 $4,000,000 $0 $0 $0 $0 $0 $0 $0 $0Reclaimed Water Disinfection, Booster Pump Station $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reclaimed Water Distribution Line - Eisenhower Ave. $0 $0 $150,000 $150,000 $500,000 $1,500,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000Environmental Center $12,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Deck Connector $3,375,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Raw Sewage Pump Station Discharge Line Repair $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Influent Screening System Upgrade $0 $250,000 $3,000,000 $3,000,000 $0 $0 $0 $0 $0 $0Scum System Upgrade $250,000 $1,500,000 $1,500,000 $0 $0 $0 $0 $0 $0 $0Biosolids Resource Recovery $0 $250,000 $2,500,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $0 $0 $0Long Range Plan Update and Associated Improvements $200,000 $250,000 $250,000 $5,000,000 $5,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000Process Air Compressor (PAC) Blower Replacement $1,750,000 $1,750,000 $0 $0 $0 $0 $0 $0 $0 $0Switchgear C Replacement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Switchgear 1A Replacement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Plant Electrical Reliability Improvements $1,500,000 $1,500,000 $500,000 $0 $0 $0 $250,000 $2,000,000 $2,000,000 $0PLC Upgrade $500,000 $500,000 $500,000 $0 $0 $0 $500,000 $500,000 $500,000 $0Supervisory Control and Data Acquisition System Upgrade $1,250,000 $0 $0 $0 $1,250,000 $0 $0 $0 $1,250,000 $0Process Automation Improvements $0 $500,000 $750,000 $2,000,000 $0 $0 $0 $0 $250,000 $2,500,000Emergency Notification System $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0Information Technology $1,275,000 $1,425,000 $1,225,000 $1,050,000 $500,000 $1,100,000 $675,000 $525,000 $750,000 $1,025,000Facility Master Plan and Associated Projects $1,300,000 $4,500,000 $4,500,000 $0 $0 $3,150,000 $0 $0 $3,000,000 $0Main Plant Stormwater System Rehabilitation Program $750,000 $250,000 $0 $0 $0 $0 $0 $0 $0 $0Main Plant Commonwealth Interceptor Pile Intrusion Repair $275,000 $2,000,000 $1,850,000 $0 $0 $0 $0 $0 $0 $0Security During Construction $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000Subtotal $43,345,000 $25,005,000 $24,155,000 $26,730,000 $24,780,000 $23,530,000 $22,705,000 $19,305,000 $20,030,000 $15,805,000

Total $46,379,000 $28,648,000 $28,271,000 $30,075,000 $25,135,000 $24,146,000 $23,082,000 $19,693,000 $20,429,000 $16,204,000


FY 2016 Calculations of Reserves and Debt Coverage The proposed FY 2016-2023 Capital Improvement Program assumes $29 million in borrowing to fund the capital infrastructure needs identified throughout this Capital Improvement Program document. It also includes $132.23 million in cost share from Fairfax County. The debt service on AlexRenew bonds is paid through the AlexRenew General Fund. This amount of investment will affect the Parity Fund. Over time, interest payments will reduce.

Financial Policy

Approved ProposedFY 2015 FY 2016Budget Budget

Financial Policy Compliance - Minimum Ending Balance120 Days of Current Year Budgeted Expenses 8,243,000 8,492,019 Transfers required of available cash for reserveProjected Fund Ending Balance 8,340,004 8,504,248 Excess of Requirement (Transfer Required) 97,004 12,229

Financial Policy Compliance - All-In Debt CoverageGross Revenues Available for Debt Service Coverage:Wastewater Treatment Charges - Alexandria 37,500,000 38,250,000 Fairfax County Operating Expense Charge 10,822,700 11,206,000 Investment Income 1,300 1,300 Total 48,324,000 49,457,300

Operating Expenses 25,072,495 25,829,891 Net Revenues 23,251,505 23,627,409 Annual Debt Service 12,196,605 13,797,775 Calculated All-In Debt Coverage 1.91 1.71 Financial Policy Minimum Target ≥150% ≥150%

alexandria renew enterprises...alexandria renew has two major sources of revenue: wastewater...

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