capital improvements budget · sc awwa/weasc best tasting water in south carolina– fourth year in...

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FY2019

Georgetown County Water and

Sewer District FY2019-FY2023

Capital Improvements Plan

Operating and Capital Improvements Budget

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Contents Introduction ............................................................................................................................................................................... 5 FY2019 – Organizational Structure ................................................................................................................................. 6 Mission Statement ................................................................................................................................................................ ... 7 Georgetown County Water and Sewer District – at a glance ................................................................................. 8 Awards ......................................................................................................................................................................................... 9 A Look Back at FY2018 – Significant Accomplishments ....................................................................................... 10 FY2019 – Personnel Request Summary ....................................................................................................................... 11 FY2019 – Departmental Requests .................................................................................................................................. 12 Executive Management ....................................................................................................................................................... 12 General Services ..................................................................................................................................................................... 12 Customer Services ................................................................................................................................................................ . 12 Information Technology ..................................................................................................................................................... 12 Accounting ................................................................................................................................................................................ 12 Billing ................................................................................................................................................................ .......................... 13 Engineering ................................................................................................................................................................ .............. 13 Construction ............................................................................................................................................................................ 13 Water Operations ................................................................................................................................................................ .. 13 Wastewater Operations ...................................................................................................................................................... 13 Maintenance ............................................................................................................................................................................ 14 Human Resources – Responsibilities, Goals and Objectives ................................................................................ 15 Finance/Administrative Services – Responsibilities, Goals, and Objectives ................................................. 16 Engineering – Responsibilities, Goals, and Objectives ........................................................................................... 18 Operations– Responsibilities, Goals, and Objectives .............................................................................................. 20 The Georgetown County Water and Sewer District ................................................................................................ 23 The History of Service 1970s to Present...................................................................................................................... 24 Current Economic Conditions .......................................................................................................................................... 26 Historical Customer Growth – By Service Area ........................................................................................................ 27 The District’s 10 Largest Customers.............................................................................................................................. 28 Budget Development ............................................................................................................................................................ 29 Determining Rates ................................................................................................................................................................ 30 Approved FY 2019 Rates .................................................................................................................................................... 31 History of Managing Rates ................................................................................................................................................. 32 Current Regional Rate Comparison ............................................................................................................................... 33

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FY2019 Financial Projections ........................................................................................................................................... 34 Budget Overview ................................................................................................................................................................ ... 35 Revenue Projections ............................................................................................................................................................. 36 Water Fund .............................................................................................................................................................................. 36 Wastewater Fund .................................................................................................................................................................. 37 General Fund: Billing and Collection ............................................................................................................................. 37 General Fund: General Administration ........................................................................................................................ 38 General Fund: Engineering ................................................................................................................................................ 39 General Fund: Restricted Income ................................................................................................................................... 39 Expenditure Projections ..................................................................................................................................................... 40 Personnel Services ................................................................................................................................................................ 40 Contractual Services ............................................................................................................................................................. 41 Supplies and Materials ........................................................................................................................................................ 42 Maintenance and Repairs ................................................................................................................................................... 43 Business and Travel .............................................................................................................................................................. 44 Capital Outlay .......................................................................................................................................................................... 45 Miscellaneous Expense ....................................................................................................................................................... 46 Debt Service ............................................................................................................................................................................. 47 Revenue and Expenditure Summaries ......................................................................................................................... 48 Summary of Projected Revenues: FY2019 Compared to FY2018 .................................................................... 49 FY2019 Projected Revenues …continued .................................................................................................................... 50 Summary of Projected Expenditures: FY2019 Compared to FY2018 ............................................................ 51 FY2019 Expenditures …continued ................................................................................................................................. 52 Debt Service Schedules ....................................................................................................................................................... 53 Long-Term Debt ..................................................................................................................................................................... 54 Capital Improvements Budget ......................................................................................................................................... 55 FY2019 Capital Projects – Budget Requests ............................................................................................................... 56 Water Main Rehabilitation Projects ............................................................................................................................... 56 North Murrells Inlet Water Tank & Distribution System Improvements ...................................................... 56 Sewer Main Rehabilitation Projects ............................................................................................................................... 56 Fire Hydrant Replacement ................................................................................................................................................. 56 Force Main Risk Analysis Project .................................................................................................................................... 56 PS 304 Bypass Engineering ............................................................................................................................................... 56 Parkersville Water Line Improvements ....................................................................................................................... 56 Carter’s Crossroads Water Improvements ................................................................................................................. 57 Clarifier Arm and Beach Repair ....................................................................................................................................... 57

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High Tank Painting................................................................................................................................................................ 57 ASR and Well Rehabilitation ............................................................................................................................................. 57 Murrells Inlet WWTP Grit Removal System ............................................................................................................... 58 Pawleys Island WWTP Sludge Press ............................................................................................................................. 58 New Well – West Georgetown (Planning Phase)...................................................................................................... 59 Waccamaw Neck Raw Water Variable Frequency Drive Upgrades .................................................................. 59 Filter Butterfly Valves Replacement .............................................................................................................................. 59 Pump Station Rehabilitation and Panel Replacement ............................................................................................ 60 Effluent Pump Rehabilitation ........................................................................................................................................... 60 Continuing Asset Maintenance Programs ................................................................................................................... 60 Sandy Island WTP High Efficiency Motors and Drives ........................................................................................... 60 FY2019 Funding Sources – Water System .................................................................................................................. 61 FY2019 Funding Sources – Wastewater System ...................................................................................................... 61 5-Year Capital Improvements Program ....................................................................................................................... 62 CIP FY2019- FY2023: Plan Summary by System Component ............................................................................ 63 CIP FY2019 - FY2023: Source of Funds Summary .................................................................................................. 63 CIP FY2019 - FY2023: Capital Equipment Purchases ........................................................................................... 64 CIP FY2019 - FY2023: Water Distribution Capital Projects ............................................................................... 65 CIP FY2019 - FY2023: Water Treatment and Storage Capital Projects ......................................................... 66 CIP FY2019 – FY2023: Wastewater Collection Capital Projects ....................................................................... 67 CIP FY2019 – FY2023: Wastewater Treatment Capital Projects ...................................................................... 68 CIP FY2019 – FY2023: Capital Repair and Replacement Fund ......................................................................... 69 CIP FY2019 – FY2023: Account 908 Contingency Fund ....................................................................................... 70 CIP FY2019 – FY2023: Water Impact Fees ................................................................................................................ 71 CIP FY2019– FY2023: Sewer Impact Fees ................................................................................................................. 72

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Introduction

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FY2019 – Organizational Structure

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Mission Statement

VISION: The Georgetown County Water and Sewer District is an environmental company here to protect the public health by providing safe water and sewer services in a cost effective manner.

MISSION: The mission of the District is to acquire, construct, maintain, and operate a water and sewer system for the maximum practical benefit of the citizens of Georgetown County.

VALUES: The District values integrity, diversity, teamwork, creativity, leadership, and customer service both in our employees and our business practices.

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Georgetown County Water and Sewer District – at a glance

• 23,364 Customers as of January 1, 2018

• 80 Employees

• 28 Wells

• 800 Miles of Water Main

• 6,956 Water Valves

• 2,151 Fire Hydrants

• 541 Post Hydrants

• 223 Miles of Sewer Force Main

• 280 Miles of Sewer Gravity Main

• 246 Sewer Pumping Stations

• 412 Grinder Units

• 215 Step Units

• 4 Wastewater Treatment Facilities

• 2 Water Treatment Facilities

• 12 Elevated Storage Tanks

• 6,787 Manholes

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Awards

The Georgetown County Water and Sewer District strives for excellence. The District employs highly skilled, creative, and conscientious individuals in an effort to provide the best possible service to our customers in an expeditious, fiscally responsible, and courteous manner.

The District’s employees have been successful! A partial list of our most recent awards from the industry’s trade and regulatory agencies, and professional organizations is provided below. A recent customer satisfaction survey also indicates a 94% level of overall satisfaction with the services provided by the District, and as of late, there have been a growing number of letters and calls in praise of our employees.

SC AWWA/WEASC Best Tasting Water in South Carolina – FOURTH YEAR IN A

ROW!!

Area Wide Optimization Award: Every year since 2002! (Award given by SC DHEC for

surface water treatment plants that produce drinking water that exceeds all state and federal

regulated standards.)

Partnership for Safe Water Directors Award 2018 - 19th Year in a Row!

SCDHEC Facility Excellence Award 2017: Debordieu Wastewater Treatment

Plant

SCDHEC Facility Excellence Award 2017: Murrells Inlet Wastewater Treatment

Plant

Rotarian of the Year Award 2018: Ray Gagnon

SCDHEC Facility Excellence Award 2017: North Santee Wastewater Treatment

Plant

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A Look Back at FY2018 – Significant Accomplishments

• 100% compliant with all primary regulatory requirements. • Satisfactory on Sanitary Surveys for all water systems and inspections for all

wastewater treatment plants.

• Completed a hydraulic model of the water system on the West side of the County. • Completed Pawleys Island gravity system repair/replacement.

• Completed Capital Good Neighbor water line extension on Tomahawk in Pleasant Hill.

• Completed inspection of all fire hydrants in the Midway service area.

• Replaced galvanized water mains and services serving S. Waccamaw Drive, Sea Level

Loop, and Shorebird Drive.

• Continued emphasis on training and employee responsibility for obtaining the skills, certifications, and licenses needed to advance within the District, which led to 11 internal promotions during the fiscal year, 1 position promotion, and 9 additional environmental license upgrades.

• Began a second Leadership Development Group preparing employees for further opportunities within the District.

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FY2019 – Personnel Request Summary

FY 2015 FY 2016 FY 2017 FY2018 FY 2019BUDGET BUDGET BUDGET BUDGET REQUESTED

MANAGEMENT 6 6 6 6 6

GENERAL ADMINISTRATIONAccounting 14 14 14 15 15General Services 1 1 1 1 1Customer Service 7 7 8 8 8IT Manager 1 1 1 1 1

ENGINEERING DIVISIONEngineering 6 6 6 7 7Construction 10 10 10 10 10

OPERATIONS DIVISIONWastewater Ops 6 6 6 6 6Water Ops 9 9 10 10 10Maintenance 15 15 16 16 16

TOTAL POSITIONS 75 75 78 80 80

POSITIONS ADDED/DELETED 0 0 3 2 0

DEPARTMENTS

8%

31%

21%

40%

Distribution by Department

MANAGEMENT

GENERAL ADMIN

ENGINEERING

OPERATIONS

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FY2019 – Departmental Requests

Executive Management

PAY TOTALPOSITION TITLE GRADES STATUS TARGET CURRENT DIFFERENTIALREQUESTED

Executive Director N/A RF 1 1 0 1Engineering Director 23 RF 1 1 0 1Operations Director 23 RF 1 1 0 1Finance/Adm Svcs Director 23 RF 1 1 0 1Human Resources Manager 19 RF 1 1 0 1HR Generalist/Exec. Assistant 10, 11, 12 RF 1 1 0 1

6 6 0 6TOTAL POSITIONS

POSITIONS

General Services

PAY TOTALPOSITION TITLE GRADES STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Administrative Assistant 6, 7, 8 RF 1 1 0 11 1 0 1TOTAL POSITIONS

POSITIONS

Customer Services


Customer Svcs Supervisor 15 RF 1 1 0 1Customer Svcs Associate 6, 7, 8 RF 6 6 0 6Customer Advocate 7, 8, 9 RF 1 1 0 1


POSITIONS

Information Technology


IT Manager 16 RF 1 1 0 11 1 0 1TOTAL POSITIONS

POSITIONS

Accounting


Finance Manager 19 RF 1 1 0 1Accounting Associate 7, 8, 9 RF 2 2 0 2Inventory Associate 4, 5, 6 RF 1 1 0 1


POSITIONS

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Billing


Accounting Supervisor 15 RF 1 1 0 1Accounting Asst. Supervisor 14 RF 1 1 0 1Bill ing Associates 6, 7, 8 RF 3 3 0 3Meter Readers 4, 5, 6 RF 6 6 0 6


POSITIONS

Engineering

PAY POSITIONS TOTAL POSITION TITLE GRADES STATUS TARGET CURRENT DIFFERENTIAL REQUESTED

Staff Engineer 16 RF 1 1 0 1 Engineering Technician 10, 11, 12 RF 3 3 0 3 Distribution Technician 5, 6, 7 RF 1 0 1 1 Cross Control Technician 8, 9, 10 RF 1 1 0 1 Administrative Associate 6, 7, 8 RF 1 1 0 1

TOTAL POSITIONS 7 6 1 7

Construction


Construction Supervisor 15 RF 1 1 0 1Crew Leader 9, 10, 11 RF 2 2 0 2Associate Construction Tech 1, 2 RF 0 5 0 5Construction Technician 5, 7, 8 RF 7 2 0 2

10 10 0 10

POSITIONS

TOTAL POSITIONS

Water Operations


Water Ops Supervisor 15 RF 1 1 0 1Water Operator Trainee 10 RF 0 1 0 1Water Operator 10, 11, 12 RF 8 7 0 7Lab Director 15 RF 1 1 0 1


POSITIONS

Wastewater Operations


Wastewater Ops Supervisor 15 RF 1 1 0 1Assoc Wastewater Tech 1, 2 RF 0 3 3 0Wastewater Operator 10, 11, 12 RF 5 2 3 5


POSITIONS

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Maintenance


Maintenance Supervisor 15 RF 1 1 0 1Asst Maintenance Supervisor 14 RF 1 1 0 1Associate Maintenance Tech 1, 2 RF 0 10 0 10Maintenance Technician 8, 9, 10 RF 14 4 0 4


POSITIONS

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Human Resources – Responsibilities, Goals and Objectives

It is the function of the Human Resource Department to provide human resource support to all District divisions and departments.

STATEMENT OF RESPONSIBILITIES:

• Assist and advise employees on career development, benefit issues, and all other personnel matters.

• Provide administration support to ensure compliance with District, State, and Federal policies

and guidelines regarding record retention, and compliance with regulations. • Develops, recommends and monitors the District’s personnel policies and guidelines including,

compensation plan, benefits, and employee relations. • Coordinate all human resource training and management activities including recruitment,

evaluations, job descriptions and classifications, and employee benefits.

• Assist and advise managers and supervisors on all employee related issues including hiring, performance management, training to ensure fairness and equity throughout the system and compliance with all federal and state regulations.

MAJOR GOALS AND OBJECTIVES:

• Develop and conduct or coordinate at least three supervisor or employee training sessions on topics such as hiring, employee evaluations, setting goals, employment legislation, safety, etc.

• Review all applicants for open positions to ensure that qualified candidates are provided equal opportunity for employment and provide assistance and guidance to the hiring supervisors and directors throughout the hiring process.

• Maintain, monitor, and report on District HR Metrics including, turnover, workers comp, evaluations, etc. Provide assistance, guidance, or recommendations for change for continual improvement.

• Conduct ongoing District screening including pre-employment background checks, drug screening, motor vehicle checks, and credit checks of employees in financially sensitive positions.

• Coordinate and monitor all personnel expenses including raises, promotions, benefits, training, screening, and other human resource expenses to be within the GCWSD budget guidelines.

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Finance/Administrative Services – Responsibilities, Goals, and Objectives

It is the function of the Finance/Administrative Services Division to coordinate and manage all activities of the Finance Department, Customer Services Department, Billing Department, Customer Advocate, and IT Management for both the Waccamaw Neck and Georgetown facilities.


• Provide the Board of Directors, Executive Director, Department Directors and supervisors with timely and accurate financial information and support.

• Ensure compliance with bond covenants, grant agreements and all financial reporting regulations.

• Development, maintenance and compliance assurance with the District’s Purchasing Policy.

• Monitor operating and capital revenues and expenditures against budget levels.

• Provide procurement support, accounts payable and payroll services for all departments.

• Establish internal controls ensuring proper safekeeping of all assets.

• Coordinate and implement Customer Services Department functions and activities.

• Ensure timely and accurate billing for all water and sewer accounts.

• Provide data retention, transfer, and processing for maintaining computer programs, reports and activities.

• Provide administrative coordination between all departments such as manpower, vehicular, material and equipment distribution.

• Maintain assessment records and update the annual assessment roll.

• Ensure appropriate levels of inventory and safeguards.


• Provide monthly combined and departmental financial reports to each Director that covers the departmental budgetary and expenditure activities by the 10th of the following month.

• Maintain bond coverage ratio of 150% or higher.

• Create capitalization of assets policy for Board of Directors presentation in FY2019.

• Evaluate alternatives to current Inventory System.

• Conduct inventory counts at the end of each trimester for reconciliation with the perpetual inventory system. Goal is less than 1% shrinkage in the Pawleys Island warehouse.

• Perform quarterly "spot" audits of petty cash and Customer Services/ Collection cash drawer balances.

• Create a meter replacement schedule. Goal is to replace all meters older than 25 years by FY2022.

• Administer the District's Good Neighbor Program with a goal of distributing 100% of funds

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donated in FY2019 and maintaining the current account balance.

• Ensure all meters are read accurately and failing meters are identified. Goal is less than 0.10% re-read meters and no meters reading zero for two consecutive months because of meter failure.

• Rotate meter reader cycles each October 1st.

• Maintain internal controls in the purchasing, payroll and accounts payable functions through periodical rotation between staff. Goal is rotation of duties on a quarterly basis.

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Engineering – Responsibilities, Goals, and Objectives

The Engineering Division is responsible to assist, coordinate, and facilitate developer, commercial and industrial interests in the planning, design, and construction of those water and sewer utility improvements essential to the orderly and timely completion of new water and sewer systems. In so doing, it is the responsibility of the division to give technical advice; review project plans; coordinate the issuance of construction and operating permits by other agencies; oversee utility construction and facilitate the conveyance to the District those utility systems to be accepted, operated and maintained by the District. The Division provides or coordinates the installation of all new customer water and wastewater connections. Assistance is provided to the Operations Division when heavy construction activities are required to operate, maintain, repair, or construct utility systems under the responsibility of the Operations Division. The Construction Division provides for the continuous maintenance and repair of the District’s water distribution system and completes the construction of “in-house” water and sewer Capital Improvement Projects as assigned.


• Provide planning, engineering, and construction in a cost effective manner for the betterment of the residents and customers of the District. Ensure the orderly expansion of District utilities through the standardization of materials and engineering design.

• Maintain contact with local, state, and federal agencies to ensure that the District complies with all regulations and operating procedures required by such agencies.

• Assist area developers and property owners in the extension of District utilities within developments being connected to the District’s utility systems.

• In conjunction with other divisions, update, implement, and monitor a District wide Capital Improvements Program/Capital Budget.

• Develop and design certain capital expansion projects to be completed by "in-house” staff.

• Make sanitary and effective water and sewer tap connections within 2 weeks of work order issuance.

• Provide timely repairs and assist with maintenance of the District’s water distribution systems within 5 days of notice and sewer collection systems within 12 hours of notice.

• Coordinate the District’s Capital Good Neighbor water utility program.

• Protect the water distribution system by installing and testing backflow devices.

• Support Operations and Maintenance Departments during major work activities such as new installations and maintenance of well, plant, and pump station facilities as assigned.

• Coordinate the orderly transfer of recently constructed water and wastewater systems to the appropriate, responsible, operating departments.

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• Coordinate engineering consultants retained by the District from initiation through to the completion of planning studies, project development, and construction design as assigned.

• Update and maintain a system of construction record drawings.

• Update and improve the District’s GIS, Work Order System and Asset Management system.

• Effectively administrate the Development Review Process using industry-approved standards always endeavoring to be responsive to the needs of the development community while using quality improvement methods.

• Provide utility location services in keeping with South Carolina utility locate statutes.


• Conduct an annual informational workshop(s) for real estate agencies, developers, architects, and engineers on the processes and procedures involved in the review and approval of developer projects in the community and county.

• Conduct/attend a bi-annual informational workshop with the County to discuss upcoming projects and our 5 year plans.

• Install an emergency discharge connection at a pump station to be determined by the Maintenance Department.

• Complete annual inspection of the Murrells Inlet/Garden City fire hydrants.

• Review and update the fire MOU for each department.

• Inspect 100% of the required testable backflow prevention devices for FY 2019.

• Submit a revised policy to SCDHEC to reduce backflow testing for residential irrigation.

• Collect current test results for 100% of identified large backflow devices.

• Repair water main breaks within 5 business days in a manner that protects public health.

• Repair force main breaks within 12 hours in an environmentally responsible way.

• Respond to 100% of the utility locates within the notice period as defined by PUPS.

• Install new water taps within 15 working days of receiving the work order.

• Update the distribution model for the sanitary survey.

• Complete all capital projects approved by the Board.

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Operations– Responsibilities, Goals, and Objectives

It is the function of the Operations Division to operate, maintain, and repair all water treatment facilities, all wastewater treatment facilities, and all wastewater pumping and transmission facilities. It is the function of the Division to provide all laboratory, operational, and compliance monitoring services for both the water and wastewater treatment systems. STATEMENT OF RESPONSIBILITIES:

• Responsible for ensuring 100% regulatory compliance with all water, wastewater, and sanitary sewer collection system.

• Responsible for the safety of all District employees.

• Ensure that all required laboratory tests are conducted in conformance with the U.S. EPA and the South Carolina Department of Health and Environmental Control (SCDHEC) standards.

• Maintain, inspect, and repair all gravity sewer systems.

• Protect the public health by providing clean, safe, water and sewer services.

• Provide for the proper maintenance and continuous operation of the District’s pumping stations and associated appurtenances.

• Provide mechanical and electrical construction, maintenance, and repair, as needed, throughout the District’s water and sewer system.


• Continuing efforts of operations personnel to ensure the successful operation and maintenance of the District’s surface water plant, wells, and wastewater treatment plants and continued compliance with all Federal, State, and local guidelines.

• Provide contract sampling and technical support to Georgetown County in the operation of the Georgetown County Leachate Treatment System.

• Ensure compliance with OSHA required work place hazard mitigation requirements. Ensure that all facilities and equipment within areas of responsibility are maintained and operated in accordance with OSHA standards.

• Eliminate safety incidents throughout the District.

• Implement effective mitigation and understand local risks and invest in long-term community well-being to increase our safety, financial security and self-reliance.

• Continue to update the District's system-wide sample site plans in keeping with the Revised Safe Drinking Water Act "Total Coliform Rule, Lead and Copper Rule, and Unregulated Contaminant Monitoring Rule”.

• Ensure compliance with all of the regulations and requirements of the Safe Drinking Water

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Act, with particular attention on compliance with the recently tightened requirements of the Stage Two Disinfection Byproducts Rule.

• Ensure the District’s wastewater facilities comply with all the requirements of the Clean Water Act including compliance with all NPDES permit and Compliance Evaluation Inspection requirements.

• Continue to certify, maintain, and operate the District's laboratory facility in accordance with USEPA and SCDHEC standards.

• Conduct a system wide free chlorine flush annually for all of required District’s water systems.

• Expand the training activities related to the District’s Emergency Response Team (Haz-Mat team) by working closely with local Emergency Response Team.

• Continue to locate and control sewer infiltration/inflow throughout the District’s service area and smoke test under our Gravity Sewer Assessment program. Televise and inspect at a minimum of 65,000 linear feet under the Routine Hydraulic Cleaning Program.

• Annually update the District’s “Water Quality” web site report to ensure that our customers are provided the water quality information they desire and deserve.

• Complete and distribute the District’s annual “Consumer Confidence Report” by the compliance deadline of June 30.

• Attention will be placed in attaining the Directors Award for the Partnership for Safe Water’s Treatment and Distribution Optimization Program.

• Attention will be placed in attaining the Directors Award for the Partnership for Clean Water Optimization Program.

• Continue to utilize AWWA methodology and self-audit water loss program to stay compliant with DHEC sanitary survey requirements.

• Continue to perform quarterly documented safety training meetings, expanded to include training exercises and drills for appropriate safety procedures, paying special attention to assure all OSHA requirements are being met.

• Continue to assess security systems throughout the District. Emphasis will continue to be placed on protecting the District’s water production and water distribution facilities and implementing vulnerability assessment recommendations.

• Continue the capital repair and replacement of critical components located at various water, wastewater and sewer pump stations.

• Maintain the District’s sanitary sewer collection system with additional manhole and pump station wet-well rehabilitations, and the complete mechanical rehabilitation during FY 2019.

• Review the elevated tank/clear-well cleaning and inspection schedule to plan short-term and long-term maintenance needs and capital budgeting requirements.

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• Identify the location of all the air release valves on force mains throughout the District and develop a scheduled maintenance program to test the valves and ensure their proper operation on a fixed schedule.

• Coordinate one Hurricane Response exercise in keeping with the District’s Emergency Response Plan.

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The Georgetown County Water and Sewer District

The Past and the Present

The Georgetown County Water and Sewer District was established on June 22, 1967 by Act 733 of the 1967 Session of the General Assembly of the State of South Carolina. The District has no taxing authority. The costs of operations and maintenance must be funded with user fees, and new system improvements are funded with capital donations from customers and developers, federal and/or state grants and loans, and general revenues. Today, Georgetown County Water & Sewer District provides water and/or sewer service to most of the more than 517 square miles as a Special Purpose District.

For Fiscal Year 2019, the District has in place a Capital Improvement Plan designed to build on the capital repair and replacement program in place as well as make system improvements. The District continues to expand the water and wastewater systems throughout Georgetown County in response to growth and to community need. During FY2018, the Sampit Water Project was funded through a Community Development Block Grant & a SC Rural Infrastructure Authority (RIA) Grant funded needed sewer system renewal. The District will continue to seek appropriate grant funding for additional improvements and renewal in FY2019. Modest increases in developer activity is expected to lead to contributions of completed water distribution and sewer collection systems from the development of both residential and commercial properties.

The Georgetown County Water and Sewer District’s focus in the past has been building the infrastructure necessary to support the industrial and population growth in Georgetown County. The District remains committed to supporting future growth and is now purposefully maintaining the existing system and planning for the capital repair and replacement of the aging infrastructure.

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The History of Service 1970s to Present

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Current Economic Conditions

The economy of Georgetown County and the entire Grand Strand is improving according to the Waccamaw Regional Council of Governments Economic Outlook Board’s Spring 2018 report. The unemployment rate has decreased this past year with the rate for Georgetown County forecast to be 4.8% as opposed to 4.9% in the spring of 2017 and 6.5% in the spring of 2016.

The tourism industry continues to grow with the Occupancy Rate with the summer of 2018 forecast to increase 2.3% over the summer of 2017 in the Grand Strand area inclusive of both Horry and Georgetown counties. Another significant indicator of economic recovery can be observed in the number of building permits issued by Horry and Georgetown Counties during that same time. There were 1,184 building permits issued in the first quarter of 2018, for the counties combined, representing an increase of 10.4% over the number of permits issued during the first quarter of 2017.

The District’s growth rate is reflective of the overall economic health of Georgetown County. Consequently, the average annual customer growth rate for the last five-year period is 1.50%. The overall customer growth rate for the twelve months ending January 2018 is 1.92%. By service area, the rate of growth experienced during the past three calendar years is as follows:

Jan 2016 Jan 2017 Jan 2018

Georgetown Service Area 1.13% 1.10% 2.45%

Waccamaw Neck Service Area 1.99% 1.57% 1.80%

Garden City Service Area -0.16% -0.47% -0.16%

The past five years have represented one of the lowest growth periods in the District’s history. However, there are several development projects in the service area as well as increased regional building activity at this time. As a result, the District is projecting growth in the 1.5-2.5% range for FY2019, yet maintaining a more conservative 1% expectation related to budgeting.

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Historical Customer Growth – By Service Area

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The District’s 10 Largest Customers

American Gypsum Manufacturing 147,468$ 3.53%SEFA Manufacturing 33,252 0.80%Tidelands Hospital Hospital 16,116 0.39%Tidelands Hospital Cooling Tower 13,698 0.33%Santee Cooper Utility 18,660 0.45%Tidelands Hospital Laundry 11,160 0.27%Georgetown County Landfill 27,156 0.65%Georgetown Co. Detention CJail Facility 13,596 0.33%Bridgewater HOA 10,680 0.26%Fresenius Healthcare 8,520 0.20%

Total 300,306$ 7.18%

Town of Andrews Municipality 175,704$ 3.70%Carolina Water Service Water Provider 68,160 1.43%Green Acres Mobile Home Pk 42,372 0.89%3V Chemical Manufacturing 19,164 0.40%Georgetown Co. Det. Ctr Jail Facility 23,424 0.49%K9 Cuisine Restaurant 8,232 0.17%Tidelands Hospital Hospital 20,688 0.44%Bridgewater HOA 17,040 0.36%Fresenius Healthcare 14,448 0.30%SC Department of Parks State Park 8,520 0.18%

Total 397,752$ 8.37%

10 Largest Water Customers - FY2017

10 Largest Sewer Customers - FY2017

BUSINESS TYPE

BUSINESS TYPE

% TOTAL BILLED

REVENUES

% TOTAL BILLED

REVENUES

BILLED REVENUES

FY2017 USER NAME

BILLED REVENUES

FY2017 USER NAME

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Budget Development

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Determining Rates

The FY2019 budgeting process included reviewing the rates and charges, then evaluating the ability of the revenue generated to support the operating and capital needs of the District. For FY2019, the operating needs of the District are expected to be met by operating revenues generated by the current rates. During the budget deliberations for FY2017, the Board of Directors determined that a methodical approach was needed to meet the cost to repair and replace the capital components of the system as the system has aged. As a result, the Board put in place to incrementally modify the water and sewer availability fees over a period of ten years to provide the funds required for planned repairs and maintenance of the capital components of the system. The plan is subject to annual review and approval by the Board. The Five Year Capital Improvement Plan, included as part of the budget document, details the initial plans and costs.

Generally, the annual budget process is:

• The District begins the budgeting process in December of each year at which time the individual departments request funding for the upcoming fiscal year. Administration reviews the requests and works with the departments to determine an appropriate budget. During that same period, the revenues of the District are estimated for the upcoming fiscal year based on historical trends and current rate structure.

• The funding requests and estimated revenues are then compared to determine any expected shortfall. The Administration then works with staff to determine if rate adjustments, spending reductions, or some combination is the appropriate method to attain a balanced budget.

• In March and April, the Board of Directors review the Executive Director’s recommendations in a series of Budget Workshops.

• A public hearing was held at the June Board of Director’s meeting. The Board of Directors adopted the budget at the regular June meeting.

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Approved FY 2019 Rates

As stated previously, the District reviewed the rates and charges during the preparation of the FY 2019 budget to determine the actual cost of providing services and provide funding for the Capital Improvement Plan. For the monthly billing charges, the only modifications are for the water availability fee and the sewer availability fee. The modifications of these two rates are to increase funding of the Depreciation and Capital Replacement Fund for capital renewals. Also, as part of the FY2019 rates and charges update, staff reviewed the actual cost of providing direct services such as the installation of a water meter tap, sewer tap or grinder unit. The review of these fees updated the cost of labor and materials as well as a review of the time spent to complete the task. The table below reflects the most common Rates and Charges and the changes, if any. For a complete list and explanation of the Rates and Charges of the District, please request a copy of the FY2019 Rates and Charges Resolution from our Customer Services Department.

FEE OR CHARGE FY 2018 FY 2019

Approved Increase

(Decrease) Monthly Billing Charges

Water Volume 1.98 1.98 - Sewer Volume 3.16 3.16 - Customer Charge 6.50 6.50 - Customer Charge - Sewer Only 5.27 5.27 - Water Availability Fee 4.67 5.03 0.36 Sewer Availability Fee 5.86 6.75 0.89 Bulk Water 1.55 1.55 - Bulk Sewer 1.99 1.99 - Unmetered Sewer Service (Changes with the Availability Fee) 30.32 31.21 0.89

Delinquent Disconnect/ReconnectSame Day 40.00 40.00 - Regular Hours Next Day 50.00 50.00 - After Hours 110.00 110.00 - Sewer Only 50.00 50.00 -

Miscellaneous Customer ChargesCustomer Service Charge 51.00 51.00 - Customer Service Charge Sewer Only 30.00 30.00 - Returned Check (State Law Maximum) 30.00 30.00 -

Customer DepositsOwner Occupied - Water 50.00 50.00 - Owner Occupied - Sewer 50.00 50.00 - Owner Occupied - Combined 100.00 100.00 - Rental - Water 100.00 100.00 - Rental - Sewer 100.00 100.00 - Rental - Combined 200.00 200.00 -

GEORGETOWN COUNTY WATER & SEWER DISTRICTFY2019 APPROVED RATES & CHARGES

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History of Managing Rates

The Georgetown County Water & Sewer District has a long history of controlling rates and service charges. The following graphic illustrates the District’s average (6,000 gallons, water & sewer) monthly charge since 1995. A recent rate survey of nearby water and sewer providers is included on the following page for comparison.

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Actual District Rates If Adjusted by Inflation

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Current Regional Rate Comparison

Water Only Sewer Only Water & Sewer

Grand Strand Water & Sewer 19.45 23.40 41.25

GCWSD (FY2018) 23.05 30.09 47.87

GCWSD (FY2019) 23.41 30.98 49.12

Rural (GCWSD Sewer)* 27.80 30.09 57.89

Browns Ferry (GCWSD Sewer)* 32.01 30.09 62.10

City of Georgetown (within City) 27.28 37.40 64.68

Andrews (within Town) 32.23 39.42 71.65

Williamsburg 34.60 44.22 74.89

Mt Pleasant (within Town) 35.82 47.82 83.64

Carolina Water (Rural Water)** 27.80 57.58 85.38

Andrews (outside of Town) 53.77 67.08 120.85

City of Georgetown (outside of City) 54.56 74.80 129.36

*Water only, sewer services provided by GCWSD**Sewer services only, water provided by Rural Water

From: Util ity Websites or direct contact with Util ity - Updated April, 2018

MONTHLY SERVICE CHARGE COMPARISONBased on 6,000 gallons usage

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FY2019 Financial Projections

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Budget Overview

The Fiscal Year 2019 Annual Operating Budget including debt service totals $17,401,736 in expenditures, an increase of $925,379, or 5.62%, from the Fiscal Year 2018 budget.

Total revenues are projected to be $17,401,736. This projection does not include non-operating impact fee revenues or revenues from the sale of surplus properties. Impact fees are not included because these revenues are specifically earmarked for capital improvements or related debt obligations and are not considered for operating purposes. The total revenues increase is based on a modest projected growth rate of 1% and the proposed rate changes.

Availability fees are designed to pay for the capital repair and replacement as well as the debt service associated with the infrastructure required to provide the core services of the District, the treatment and transmission of water, and the collection and treatment of wastewater. The debt service requirements, as budgeted, are based on the existing debt structure of the District as of June 30, 2018. The District refunded a substantial portion of the debt structure in August 2016. The refunding of the majority of the USDA related debt generated significant long-term savings and stability in the annual debt services costs. FY2019 will see a $521 decrease in annual debt service. This year also includes a modification of the availability fees to fund the renewal and replacement of existing infrastructure, specifically for paying for increasing capital repair and replacement needs.

A Capital Improvements Budget for FY2019 is also included. The Capital Budget total is $8,003,000, with $430,000 planned for capital equipment, $5,400,000 planned for water improvements and $2,173,000 planned for wastewater improvements.

Operating and restricted revenue and expenditure projections are presented in the next section of this document.

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Revenue Projections

Revenues projected in this report are based upon the monthly service fees recommended in a rate study prepared by staff this past budget year. For the FY2019 budget, the Board approved a rate change to the availability fees to fund ongoing capital repairs and replacements. Total revenues are projected to increase 5.62% due to the rate change and customer growth.

During the last few years, the District has experienced minimal growth in the customer base, except for those customers added to the system because of water and sewer utility extensions serving existing communities. Revenue projections for FY2019 are based upon this current trend of limited growth, estimated at 1%, and the recommended rate schedule. For comparison, the total FY2018 revenue budget was $16,476,357 while the total FY2019 revenue projected is $17,401,737. This is an increase of $925,380 or 5.62%.

Water Fund

WATER FUND revenues, as approved, will increase from the FY2018 budget of $5,036,440 to $5,397,207, an increase of $360,767.

Water Volume Charge income is predicted at $4,359,160, which is $175,160 more than the FY2018 budget. This increase reflects the modest projected customer growth and the addition of an industrial customer.

Water Service Connection income is expected to increase $14,000 compared to FY2018. The principal source of revenue in this category is the purchase of new residential sized water taps. Water Service Connection income is predicted to be $214,000.

Backflow Inspection Charge income is associated with the state requirement that all backflow devices be tested to ensure their proper operation and prevent contamination of the public water supply. The FY2019 budget for this budget category is $113,500 or $13,500 more than the FY2018 budgeted amount of $100,000.

Other Operating Reimbursements income is associated with contract services provided to other agencies, internal engineering reimbursements, as well as line extensions, meter relocations, and reimbursements for repairs made to the system resulting from damages by others such as utility

FY 2018 FY 2019 FY 2019 FY 2019 BUDGET % INCREASEBUDGET (REV) DEPT REQ. CEO REC. BOARD APPR. INC./(DECR.) (DECREASE)

WATER FUNDWater Volume Charge 4,184,000 4,270,000 4,359,160 4,359,160 175,160 4.19%Water Service Connection 200,000 214,000 214,000 214,000 14,000 7.00%Meter Placement Charge 2,000 2,000 2,000 2,000 - 0.00%Backflow Inspection Charge 100,000 113,500 113,500 113,500 13,500 13.50%Water DECAP Charge 490,440 648,547 648,547 648,547 158,107 32.24%Other Operating Reimb. 60,000 60,000 60,000 60,000 - 0.00%

5,036,440 5,308,047 5,397,207 5,397,207 360,767 7.16%

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construction companies. Other Operating Reimbursements is projected at $60,000, unchanged from the amount budgeted for this category in FY2018.

Wastewater Fund

WASTEWATER FUND revenues are predicted to be $6,400,319. This is an increase of $504,779 from the FY2018 budget and reflects increased DECAP funding through the sewer availability fees.

The Sewer Volume Charge income projection will increase from the FY2018 budget of $5,009,500 to $5,119,479, an increase of $109,979. This increase reflects the modest projected customer growth.

Other revenue sources within the Wastewater Fund are Sewer Service Connection currently estimated at $1,000, Sewer Tap/Step Unit which is forecasted at $100,000, and Sewer Service Inspection income that is estimated at $21,476. Sewer service and tap income is difficult to predict and is generally budgeted based on the projected actual of the previous year and adjusted projected growth. A sewer tap is typically charged when a sewer tap is required for a new single-family lot or subdivision. This revenue is primarily related to new residential grinder pump stations and STEP unit installations, which are expected to be relatively stable in FY2019.

Other Operating Reimbursements within the Wastewater Fund is expected to generate $65,000 for FY2019, unchanged from FY2018.

General Fund: Billing and Collection

The BILLING AND COLLECTION Department revenues are estimated at $2,157,750. This is an increase of $52,750 from the FY2018 projection of $2,105,000.

Customer Charge income is projected to increase from the FY2018 projection by $44,750 or 2.50%. This monthly charge recovers costs associated with such expenses as personnel and postage for utility billing purposes, meter reading personnel costs, customer service and computer and personnel costs related to the processing and collection of monthly utility bills. The increase in the projected revenue is related to the modest projected customer growth and FY2018 actual results.


WASTEWATER FUND Sewer Volume Charge 5,009,500 5,060,000 5,119,479 5,119,479 109,979 2.20%Sewer Service Connection 1,000 1,000 1,000 1,000 - 0.00%Sewer Tap / Step Unit 75,000 100,000 100,000 100,000 25,000 33.33%Sewer Service Inspection 20,000 21,476 21,476 21,476 1,476 7.38%Sewer Reconnect - - - - - n/aSewer DECAP Charge 725,040 1,093,365 1,093,365 1,093,365 368,325 50.80%Other Operating Reimb. 65,000 65,000 65,000 65,000 - 0.00%

5,895,540 6,340,841 6,400,319 6,400,319 504,779 8.56%

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Service Charge income is predicted at $120,000 for FY2019. This charge is related to the costs of processing new accounts and transfers.

Delinquent Customer Fee and Late Payment Processing are associated with delinquent accounts and are difficult to predict. The combined total revenues from these sources are predicted to be $194,000 which decreased from FY2018 by $4,000.

Returned Check Fees are predicted to be $9,000, which increased from FY2018 by $2,000.

General Fund: General Administration

GENERAL ADMINISTRATION revenues are expected to increase during FY2019. Revenues in this category are forecasted to be $127,450, while the FY2018 budgeted amount was projected at $73,500. The primary source of income in this category is interest earned on various investments. Interest Income for FY2019 is estimated to increase $60,000 to $138,000 on earnings due to higher interest rates. The remaining income categories including Discounts Earned, Finance Charges, Net Credit Card Fees and Miscellaneous Income produce very little income in proportion to the District’s total income.

The District, because of bond covenants and legislative mandates, must invest only in U. S. Federal Government collateralized investments. The budgeted rate of return on funds available for investment is 2.00%.


BILLING & COLLECTION Customer Charge 1,790,000 1,816,850 1,834,750 1,834,750 44,750 2.50%Service Charge 110,000 120,000 120,000 120,000 10,000 9.09%Reconnect Charge 120,000 110,000 110,000 110,000 (10,000) -8.33%Late Payment Processing 78,000 84,000 84,000 84,000 6,000 7.69%Returned Check Fees 7,000 9,000 9,000 9,000 2,000 28.57%

2,105,000 2,139,850 2,157,750 2,157,750 52,750 2.51%


GENERAL ADMINISTRATION Interest Income 78,000 138,000 138,000 138,000 60,000 76.92%Discounts Earned 1,000 1,000 1,000 1,000 - 0.00%Finance Charge 500 500 500 500 - 0.00%Credit Card Fees 19,000 19,950 19,950 19,950 950 5.00%Credit Card Charges (65,000) (70,000) (70,000) (70,000) (5,000) 7.69%Miscellaneous Income 40,000 38,000 38,000 38,000 (2,000) -5.00%

73,500 127,450 127,450 127,450 53,950 73.40%

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General Fund: Engineering

Based upon the number of separate development projects to be evaluated, it is expected that Engineering Department revenues from fees for services will decrease slightly compared with the projected revenues for FY2018. It should be pointed out that the District recovers only a portion of the actual cost of providing engineering support services for developer initiated projects and extensions to the District's utility systems. The FY2019 Engineering Income is projected to be $76,100, down from $80,617 budgeted in FY2018.

General Fund: Restricted Income

RESTRICTED INCOME includes all income from various sources that are pledged to fund a specific non-operating District function. A substantial portion of these revenues are for the purpose of off-setting long term debt service obligations of the District and are directly related to a specific fee or charge. This being the case, these revenues are presented in the budget as Restricted Income.

Availability Charge-Water revenue is projected to be $1,416,132, which is an increase of 2.37% above the FY2018 projection of $1,383,280. This charge is levied on a residential equivalent unit basis and recovers all debt service cost associated with treatment and major transmission components of the water system in addition to funding a portion of the Capital Repair and Replacement Program.

Availability Charge-Sewer is forecasted at $1,234,778, which is $75,202 less than the FY2018 estimate. This fee pays for all debt associated with the treatment and interceptor components of the wastewater system in addition to funding a portion of the Capital Repair and Replacement Program.

Interest on Restricted Accounts is projected at $2,000, which is equal the amount budgeted in FY2018.

Water and Sewer Assessments income is projected to remain unchanged during FY2019. Assessment revenues pay for the debt service cost associated with various bonds issued for financing water


ENGINEERING Engineering Income 80,617 76,100 76,100 76,100 (4,517) -5.60%


RESTRICTED INCOMEAvailability Charge - Water 1,383,280 1,416,132 1,416,132 1,416,132 32,852 2.37%Availability Charge - Sewer 1,309,980 1,234,778 1,234,778 1,234,778 (75,202) -5.74%Water & Sewer Assessments 400,000 400,000 400,000 400,000 - 0.00%Interest Income 2,000 2,000 2,000 2,000 - 0.00%Demand Charge - Water 85,000 85,000 85,000 85,000 - 0.00%Demand Charge - Sewer 105,000 105,000 105,000 105,000 - 0.00%

3,285,260 3,242,910 3,242,910 3,242,910 (42,350) -1.29%

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transmission and sewer collection improvements within existing communities. The actual income earned in any one year may vary due to penalties that are levied on late payments and property owners that choose to pay their assessment principal in its entirety rather than in equal annual installment payments. The combined Sewer Assessment revenue and Water Assessment revenue is expected to be $400,000.

Expenditure Projections

FY2019 expenses were approved at $17,401,736 which is $925,379 higher than FY2018. The FY2019 expense budget contains a contingency of $350,000 for use in the event of revenue shortfall or cost overages.

Personnel Services

The PERSONNEL SERVICES budget category was approved to total $5,908,059, an increase of $144,387 or 2.51% as compared to the revised FY2018 personnel services budget.

In recent years, funding for cost-of-living and merit increases have not been included as part of the personnel services budget, but were absorbed by contingency funds upon Board approval. The allocation for FY2019 Salaries and Wages - Regular of $3,829,339 reflects the FY2018 COLA and merit increases awarded in January 2018 and promotions earned by employees during FY2018. The total allocation represents a 0.59% increase over the revised FY2018 budget in the Salaries and Wages category. It is again recommended that the Board complete an annual review of the District’s salaries and wages to determine if it is appropriate to award cost-of-living and/or merit salary increases to the District’s employees. As before, salary adjustments would be funded by a transfer from the contingency account to the appropriate personnel services account.

Salaries & Wages Overtime has been approved to increase $10,140 from the FY2018 appropriation to $124,800. Costs here are traditionally related to after-hour and weekend scheduled work duties as well as responses to after-hour emergency repairs as needed.

Personnel Insurance, related to employee health insurance and other fringe benefit coverage, increased to $843,856 as compared to the $823,257 appropriated for FY2018 based on anticipated increases from the insurance carrier.


PERSONNEL SERVICESSalaries & Wages - Regular 3,807,057 3,829,339 3,829,339 3,829,339 22,282 0.59%Salaries & Wages - Overtime 114,660 124,800 124,800 124,800 10,140 8.84%FICA Tax Expense 301,982 304,308 304,308 304,308 2,326 0.77%Health Insurance 823,257 843,856 843,856 843,856 20,599 2.50%Retirement 502,537 580,010 580,010 580,010 77,473 15.42%Workman's Compensation 65,000 75,000 75,000 75,000 10,000 15.38%Other Payroll Expenses 149,179 150,746 150,746 150,746 1,567 1.05%

TOTAL PERSONNEL SERVICES 5,763,672 5,908,059 5,908,059 5,908,059 144,387 2.51%

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Retirement contributions for FY2019 are funded at $580,010, representing an increase of $77,473 over the FY2018 budget allocation. State mandated contribution rate increases are the primary drivers of this 15.42% increase.

Worker’s Compensation premiums will increase $10,000 for FY2019 to $75,000. The South Carolina Division of General Services provides Worker’s Compensation insurance for the District. Premiums are pro-rated to all agency participants based upon projected gross salaries and claims filed.

Budget item Other Payroll Expenses were approved to increase by $1,567 to $150,746. As a political subdivision of the state, the District does not pay unemployment insurance but pays directly for all claims.

Contractual Services

A total of $3,063,143 is approved for CONTRACTUAL SERVICES for FY2019. This represents a decrease of 1.73% from the FY2018 budget.

The item account Rents and Leases - Vehicles increased from FY2018 by $300. Although the transition from leasing of District vehicles to the purchasing of vehicles has been completed, this account also includes employee car allowances. Staff is budgeting $7,200 to fund this account.

Costs incurred in the account item Rents and Leases - Other Equipment include the rental of office equipment and specialized equipment for construction or maintenance activities. The proposed budget remains unchanged at $47,900 for FY2019.

The object account Utilities is budgeted at $1,390,303 for FY2019, representing a decrease of $18,878 compared to the FY2018 budget. The approved budget is 1.34% below the FY2018 budgeted expenditure. The District anticipated rate increases from Santee Cooper and Santee Electric Cooperative in FY2018 that were more modest than budgeted.

Sewer Service Charge expense will decrease due to lower than anticipated pass through costs from the City of Georgetown for contract services as part of the Regional Wastewater Treatment


CONTRACTUAL SERVICESRents & Leases - Vehicles 6,900 7,200 7,200 7,200 300 4.35%Rents & Leases - Other Equip. 47,900 47,900 47,900 47,900 - 0.00%Utilities 1,409,181 1,403,861 1,390,303 1,390,303 (18,878) -1.34%Sewer Service Charges 586,455 586,455 476,782 476,782 (109,673) -18.70%Telephone & Commun. Lines 116,940 116,940 116,940 116,940 - 0.00%Insurance - Operations 152,366 170,925 170,925 170,925 18,559 12.18%Professional Services - Legal 15,000 15,000 15,000 15,000 - 0.00%Professional Services - Consultants - - - - - 0.00%Professional Services - Other 76,325 78,350 78,350 78,350 2,025 2.65%Employee Uniforms 15,015 17,515 17,515 17,515 2,500 16.65%Service & Maint. Contracts 690,870 742,228 742,228 742,228 51,358 7.43%

TOTAL CONTRACTUAL SERVICES 3,116,952 3,186,374 3,063,143 3,063,143 (53,809) -1.73%

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Partnership. For this account, $476,782 has been approved. All wholesale or bulk contract sewer treatment service provided by the City of Georgetown and the Grand Strand Water and Sewer Authority is charged to this item account. The budgeted decrease is $109,673 or 18.70%.

The item account Telephone & Communication Lines is expected to remain unchanged from the FY2018 budget. The account “Telephone Communication Lines” includes operating expenses related to general office telephone services, computer communication leased lines, and the remotely controlled telephone monitoring systems located at various well and pumping station sites. The Board has approved $116,940 for this budget item.

Insurance Operations is projected to increase by 12.18% from the FY2018 budget due to a substantial premium increases across the board for automotive, tort, inland marine & building and property insurance. This classification accounts for all flood, fire, auto liability, inland marine, fidelity, and building and personal property insurance premiums paid by the District. The FY2019 amount is for $170,925, representing an increase of $18,559 over the FY2018 budget.

The funding approved for Professional Services – Legal, of $15,000 is unchanged from the FY2018 budget.

Professional Services – Consultants has $0 for FY2019, remaining unchanged from FY2018.

Professional Services – Other includes professional, financial, and audit services. For FY2019, $78,350 has been approved.

The allowance for Employee Uniforms remains stable for FY2019 at $17,515. Uniforms are provided to all field and engineering employees. Employees are allocated a uniform budget from which they can purchase District approved uniforms as needed.

During FY2019, Service and Maintenance Contracts will be funded at $742,228 as compared to $690,870 in FY2018. Bio-solids disposal costs, computer software licensing, contract maintenance costs, janitorial services, and contractual lawn care are charged to this account.

Supplies and Materials

SUPPLIES AND MATERIALS is approved at $1,323,541, which is a decrease of $7,131 from the FY2018 budget.

Operating Supplies and Materials includes small tools that are not capitalized, janitorial supplies, diesel fuel for generators and bypass pumps, and miscellaneous maintenance and repair supplies and materials. For FY2019, Operating Supplies and Materials, $163,237 has been approved, which is an increase of $118 from the FY2018 budget.

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It is anticipated that Water Purchased for Resale will increase somewhat. Charged to this account is wholesale or bulk water purchased from Grand Strand Water and Sewer Authority. The amount approved for this cost item in FY2019 is $326,472, up by $7,107, for an increase of 2.23%.

Auto Supplies are limited to fuel purchases only. With wildly fluctuating fuel prices, a reasonable target for FY2019 is difficult, at best. Staff has cautiously forecast an increase of 7.82% in fuel costs based on forecasts, making the approved funding level $156,100, or $11,321 more than the FY2018 budget.

It has been approved that Printing and Office Supplies will require $50,947, a slight decrease of $1,757 from the FY2018 budget. Funded here are such items as paper products, printed materials, office supplies, computer supplies, and engineering supplies and materials.

The approved budgeted amount for Lab Treatment Supplies and Materials decreased by $23,920 for FY2019 from the revised FY2018 budget of $650,704. Charged here are water treatment chemicals such as chlorine, ferric chloride, ammonia, potassium permanganate, lime, caustic, and wastewater treatment chemicals used in the wastewater treatment process. In addition, all laboratory chemicals and supplies are expensed to this account. For FY2019, $626,785 has been approved for this item.

Maintenance and Repairs

MAINTENANCE AND REPAIRS, as approved, will be funded for $1,464,455 for a 5.84% increase over the FY2018 budget.

The allocation for budget item Maintenance and Repair - Buildings and Grounds is $124,715, up 100.83%, or $62,615, from the FY2018 budget. Included in this category are miscellaneous repairs to the District’s administrative offices and the repairs to certain small buildings that house water and sewer equipment.


SUPPLIES and MATERIALSOperating Supplies & Material 163,119 165,842 163,237 163,237 118 0.07%Water Purchased for Resale 319,365 326,472 326,472 326,472 7,107 2.23%Auto Supplies 144,779 156,100 156,100 156,100 11,321 7.82%Printing & Office Supplies 52,704 57,489 50,947 50,947 (1,757) -3.33%Lab Treatment Supplies & Mat. 650,704 626,785 626,785 626,785 (23,920) -3.68%

TOTAL SUPPLIES and MATERIALS 1,330,671 1,332,688 1,323,541 1,323,541 (7,131) -0.54%


MAINTENANCE and REPAIRMaint & Repair-Bldgs & Ground 62,100 124,715 124,715 124,715 62,615 100.83%Maint & Repair-Facilities 1,010,138 1,080,128 1,004,073 1,004,073 (6,065) -0.60%Maint & Repair-Equipment 150,510 187,760 174,760 174,760 24,250 16.11%Maint & Repair-Vehicles 160,907 160,907 160,907 160,907 - 0.00%

TOTAL MAINTENANCE and REPAIR 1,383,655 1,553,510 1,464,455 1,464,455 80,800 5.84%

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The budget item Maintenance and Repair - Facilities is the principal account for which maintenance materials are expensed. Items typically included in this classification are pipe line repair materials as well as maintenance and repair items needed for approximately 236 sewer pumping stations, 648 grinder and step pumping stations, 28 wells and 6 treatment plants operated and maintained by the District. Preventative maintenance activities in addition to routine repairs are funded through this account. Staff extensively reviewed the departmental requests for this account as part of the overall preventative maintenance plan and the capital repair and replacement program. Items that were deemed capital repairs that extended the useful life of the asset were budgeted as part of the Capital Improvement Plan (CIP). A decrease of $6,065 is approved for this budget item, for a total of $1,004,073.

Expenditures for Maintenance and Repair - Equipment are expected to increase by $24,250 over the FY2018 budget for this category. This item account allocates costs for the repair and maintenance of operational equipment such as laboratory equipment, backhoes, track hoes, and various pieces of maintenance and construction equipment. The budget is $174,760.

The object account Maintenance and Repair - Vehicles appropriates funding for the maintenance of the District’s vehicles. For FY2019, the approved budget for this category remains unchanged at $160,907.

Business and Travel

The allocation for the budget category BUSINESS AND TRAVEL represents a decrease of $2,659 for an FY2019 budget authorization of $294,905.

Travel Expense includes travel to state and national conferences and overnight, out-of-town travel for business related activities. For FY2019, $29,540 is approved, a decrease of $75 from the FY2018 allocation.

Private Vehicle Expense is approved at $5,280 for FY2019. This line item serves to reimburse the Board for mileage expense to and from District-related meetings or events, and for employees that


BUSINESS and TRAVEL EXPENSETravel Expense 29,615 29,840 29,540 29,540 (75) -0.25%Private Vehicle Expense 5,184 5,270 5,280 5,280 96 1.85%Postage & Delivery 118,640 117,020 117,020 117,020 (1,620) -1.37%Employee Training 53,050 53,000 51,250 51,250 (1,800) -3.39%Memberships & Meetings 37,875 38,165 37,715 37,715 (160) -0.42%Board Member Per Diem 10,000 10,000 10,000 10,000 - 0.00%Prof. Books & Periodicals 4,700 3,650 3,650 3,650 (1,050) -22.34%Public Information 11,250 11,400 11,400 11,400 150 1.33%Miscellaneous Expenses 27,250 28,800 29,050 29,050 1,800 6.61%

TOTAL BUSINESS and TRAVEL EXP 297,564 297,145 294,905 294,905 (2,659) -0.89%

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use personal vehicles to conduct District business when a District vehicle is not available for their use.

Postage and Delivery is projected to decrease by 1,620 or 1.37%. Funding of $117,020 has been approved for this account.

The District has continued to emphasize the need to provide its employees with valuable skills training and education. For FY2019, the Employee Training budget is $625 per employee or $51,250. Costs here are associated with ongoing professional training, operator certification, and safety training including training for hazardous materials handling.

The allocation for funding Memberships and Meetings is $37,875 for FY2019.

Board Member Per Diem is expected to remain constant.

Professional Books/Periodicals is budgeted to decrease from $4,700 in FY2018 to $3,650 in FY2019.

The approved funding amount for Public Information is $11,400, an increase of $150 from FY2018. The budget for this line item provides for the advertising costs for job postings, and various legal notices required of the District such as advertisements for Public Hearings, or the publication of the annual Board Meeting schedule.

Miscellaneous Expense is used for those expenses that do not readily “fit” in another expense category. Examples include employee Christmas gifts, various employee committee expenses and service awards. The approved budget for FY2019 is $29,050.

Capital Outlay

CAPITAL OUTLAY is approved at $744,007. This is an increase of $39,820 compared to the budget for FY2018. All capital replacement of rolling stock (such as trucks and excavators), computers and furniture is budgeted in Capital Outlay.

For Buildings and Fixed Equipment, no expenses are budgeted for FY2019.


CAPITAL OUTLAYLand & Land Improvements - - - - - n/aBldg. & Fixed Equipment - - - - - n/aAutomotive Equipment 220,000 200,000 200,000 200,000 (20,000) -9.09%Operational & Constr. Equip. 211,050 314,550 281,250 281,250 70,200 33.26%Furniture & Fixtures 9,200 15,200 15,500 15,500 6,300 68.48%Construction Material 263,937 263,937 247,257 247,257 (16,680) -6.32%Professional Services - - - - - 0.00%

TOTAL CAPITAL OUTLAY 704,187 793,687 744,007 744,007 39,820 5.65%

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For Automotive Equipment, $200,000 is approved for FY2019 from the operating budget. The District anticipates spending $180,000 to replace existing vehicles and $20,000 for a new truck for the Meter Reader position approved in FY2018.

The category Operations and Construction Equipment, is funded in the amount of $281,250, which is $70,200 above the FY2018 budget. This object item is a capital account for the purchase of new operations and construction equipment. Most of the increase is to purchase a rubber tire backhoe.

The object item account Furniture and Fixtures is a capital account designated for the purchase of furniture and fixtures for operational facilities and offices. For FY2019, $15,500 is approved for office furniture, computer equipment and a meter reader handheld.

The budget item Construction Materials accounts for a major portion of the planned expenditures for this expense category. For FY2019, $247,257 is approved, a decrease of $16,680 from FY2018. Expenditures in this budget item relate to the purchase of construction materials for the installation of new water and sewer connections, installation of wet taps, minor line extensions and valves.

Miscellaneous Expense

MISCELLANEOUS EXPENSE is budgeted at $2,146,912. This cost category includes the budget for Contingency, Depreciation and Capital Replacement, and Bad Debts. With the exception of Bad Debts, these accounts fund restricted cash accounts held for a variety of reasons.

Contingency can be used to compensate for overages in other budgetary areas or shortfalls in revenue. The contingency account is approved at $350,000 for FY2019.

Depreciation and Capital Replacement is a budgeted cash transfer to a restricted cash account with a budget of $50,000 for FY2019 from the Operating Fund. In addition, the water and sewer availability fees have been increased to provide an additional $1,741,912 in transfers for a total of $1,791,912 in funding for FY2019. The purpose of the account is to fund capital repairs of the system as approved in the Capital Improvement Plan (CIP), as well as unplanned capital repairs as approved by the Board of Directors. The cost category Bad Debts is funded at $5,000 again for FY2019.


MISCELLANEOUSContingency 151,940 350,000 350,000 350,000 198,060 130.35%Deprec. & Capital Replacement 1,265,480 1,791,912 1,791,912 1,791,912 526,432 41.60%Bad Debts 5,000 5,000 5,000 5,000 - 0.00%Miscellaneous Other - 0.00%

TOTAL MISCELLANEOUS 1,422,420 2,146,912 2,146,912 2,146,912 724,492 50.93%

47

Debt Service

DEBT SERVICE is approved for an amount of $2,456,715, relatively unchanged from the FY2018 budget.


DEBT SERVICEBond & Interest Payments 2,457,236 2,456,715 2,456,715 2,456,715 (521) -0.02%Cushion Fund Contributions - - - - - 0.00%

TOTAL DEBT SERVICE 2,457,236 2,456,715 2,456,715 2,456,715 (521) -0.02%

48

Revenue and Expenditure Summaries

49

Summary of Projected Revenues: FY2019 Compared to FY2018

FY 2018 FY 2019 BUDGET % INCREASE

BUDGET (REV) APPROVED INC./(DECR.) (DECREASE)WATER FUND

Water Volume Charge 4,184,000 4,359,160 175,160 4.19%Water Service Connection 200,000 214,000 14,000 7.00%Meter Placement Charge 2,000 2,000 - 0.00%Backflow Inspection Charge 100,000 113,500 13,500 13.50%Water DECAP Charge 490,440 648,547 158,107 32.24%Other Operating Reimb. 60,000 60,000 - 0.00%

5,036,440 5,397,207 360,767 7.16%WASTEWATER FUND

Sewer Volume Charge 5,009,500 5,119,479 109,979 2.20%Sewer Service Connection 1,000 1,000 - 0.00%Sewer Tap / Step Unit 75,000 100,000 25,000 33.33%Sewer Service Inspection 20,000 21,476 1,476 7.38%Sewer Reconnect - - - n/aSewer DECAP Charge 725,040 1,093,365 368,325 50.80%Other Operating Reimb. 65,000 65,000 - 0.00%

5,895,540 6,400,319 504,779 8.56%BILLING & COLLECTION

Customer Charge 1,790,000 1,834,750 44,750 2.50%Service Charge 110,000 120,000 10,000 9.09%Reconnect Charge 120,000 110,000 (10,000) -8.33%Late Payment Processing 78,000 84,000 6,000 7.69%Returned Check Fees 7,000 9,000 2,000 28.57%

2,105,000 2,157,750 52,750 2.51%GENERAL ADMINISTRATION

Interest Income 78,000 138,000 60,000 76.92%Discounts Earned 1,000 1,000 - 0.00%Finance Charge 500 500 - 0.00%Credit Card Fees 19,000 19,950 950 5.00%Credit Card Charges (65,000) (70,000) (5,000) 7.69%Miscellaneous Income 40,000 38,000 (2,000) -5.00%

73,500 127,450 53,950 73.40%

50

FY2019 Projected Revenues …continued

ENGINEERING Engineering Income 80,617 76,100 (4,517) -5.60%

TOTAL OPERATING REVENUES 13,191,097 14,158,826 967,729 7.34%

FY 2018 FY 2019 BUDGET % INCREASEBUDGET (REV) APPROVED INC./(DECR.) (DECREASE)

RESTRICTED INCOMEAvailability Charge - Water 1,383,280 1,416,132 32,852 2.37%Availability Charge - Sewer 1,309,980 1,234,778 (75,202) -5.74%Water & Sewer Assessments 400,000 400,000 - 0.00%Interest Income 2,000 2,000 - 0.00%Demand Charge - Water 85,000 85,000 - 0.00%Demand Charge - Sewer 105,000 105,000 - 0.00%

3,285,260 3,242,910 (42,350) -1.29%

TOTAL REVENUES 16,476,357 17,401,736 925,379 5.62%

51

Summary of Projected Expenditures: FY2019 Compared to FY2018

FY 2018 FY 2019 BUDGET % INCREASEBUDGET (REV) APPROVED INC./(DECR.) (DECREASE)

PERSONNEL SERVICESSalaries & Wages - Regular 3,807,057 3,829,339 22,282 0.59%Salaries & Wages - Overtime 114,660 124,800 10,140 8.84%FICA Tax Expense 301,982 304,308 2,326 0.77%Health Insurance 823,257 843,856 20,599 2.50%Retirement 502,537 580,010 77,473 15.42%Workman's Compensation 65,000 75,000 10,000 15.38%Other Payroll Expenses 149,179 150,746 1,567 1.05%

TOTAL PERSONNEL SERVICES 5,763,672 5,908,059 144,387 2.51%

CONTRACTUAL SERVICESRents & Leases - Vehicles 6,900 7,200 300 4.35%Rents & Leases - Other Equip. 47,900 47,900 - 0.00%Utilities 1,409,181 1,390,303 (18,878) -1.34%Sewer Service Charges 586,455 476,782 (109,673) -18.70%Telephone & Commun. Lines 116,940 116,940 - 0.00%Insurance - Operations 152,366 170,925 18,559 12.18%Professional Services - Legal 15,000 15,000 - 0.00%Professional Services - Consultants - - - 0.00%Professional Services - Other 76,325 78,350 2,025 2.65%Employee Uniforms 15,015 17,515 2,500 16.65%Service & Maint. Contracts 690,870 742,228 51,358 7.43%

TOTAL CONTRACTUAL SERVICES 3,116,952 3,063,143 (53,809) -1.73%

SUPPLIES and MATERIALSOperating Supplies & Material 163,119 163,237 118 0.07%Water Purchased for Resale 319,365 326,472 7,107 2.23%Auto Supplies 144,779 156,100 11,321 7.82%Printing & Office Supplies 52,704 50,947 (1,757) -3.33%Lab Treatment Supplies & Mat. 650,704 626,785 (23,920) -3.68%

TOTAL SUPPLIES and MATERIALS 1,330,671 1,323,541 (7,131) -0.54%

MAINTENANCE and REPAIRMaint & Repair-Bldgs & Ground 62,100 124,715 62,615 100.83%Maint & Repair-Facilities 1,010,138 1,004,073 (6,065) -0.60%Maint & Repair-Equipment 150,510 174,760 24,250 16.11%Maint & Repair-Vehicles 160,907 160,907 - 0.00%

TOTAL MAINTENANCE and REPAIR 1,383,655 1,464,455 80,800 5.84%

52

FY2019 Expenditures …continued FY 2018 FY 2019 BUDGET % INCREASE

BUDGET (REV) APPROVED INC./(DECR.) (DECREASE)BUSINESS and TRAVEL EXPENSE

Travel Expense 29,615 29,540 (75) -0.25%Private Vehicle Expense 5,184 5,280 96 1.85%Postage & Delivery 118,640 117,020 (1,620) -1.37%Employee Training 53,050 51,250 (1,800) -3.39%Memberships & Meetings 37,875 37,715 (160) -0.42%Board Member Per Diem 10,000 10,000 - 0.00%Prof. Books & Periodicals 4,700 3,650 (1,050) -22.34%Public Information 11,250 11,400 150 1.33%Miscellaneous Expenses 27,250 29,050 1,800 6.61%

TOTAL BUSINESS and TRAVEL EXP 297,564 294,905 (2,659) -0.89%

CAPITAL OUTLAYLand & Land Improvements - - - n/aBldg. & Fixed Equipment - - - n/aAutomotive Equipment 220,000 200,000 (20,000) -9.09%Operational & Constr. Equip. 211,050 281,250 70,200 33.26%Furniture & Fixtures 9,200 15,500 6,300 68.48%Construction Material 263,937 247,257 (16,680) -6.32%Professional Services - - - 0.00%

TOTAL CAPITAL OUTLAY 704,187 744,007 39,820 5.65%

MISCELLANEOUSContingency 151,940 350,000 198,060 130.35%Deprec. & Capital Replacement 1,265,480 1,791,912 526,432 41.60%Bad Debts 5,000 5,000 - 0.00%Miscellaneous Other - 0.00%

TOTAL MISCELLANEOUS 1,422,420 2,146,912 724,492 50.93%

TOTAL OPERATING EXPENDITURES 14,019,121 14,945,022 925,901 6.60%

DEBT SERVICEBond & Interest Payments 2,457,236 2,456,715 (521) -0.02%Cushion Fund Contributions - - - 0.00%

TOTAL DEBT SERVICE 2,457,236 2,456,715 (521) -0.02%

TOTAL EXPENDITURES 16,476,357 17,401,737 925,380 5.62%

53

Debt Service Schedules

54

Long-Term Debt

The District began the process of refunding the majority of its debt held by the U.S. Department of Agriculture in June 2016. In July 2016, the District completed the preliminary offering statement and was rated A1 by Moody’s Investor Services. The District issued $21,050,000 on August 26, 2016 in the form of the Series 2016 Water and Sewer Revenue Refunding Bonds to a receptive market. The bonds refunded had an interest rate range of 6.50% to 2.125% with terms of up to 40 years. The 2016 Refunding Bond was issued with interest rates ranging 5.00% to 2.00% with terms of up to 18 years. The District anticipates savings of $4,000,000 over the term of the 2016 Series Bond.

The following chart is the annual debt service over the next ten years for the District’s outstanding bonds, not including contractually obligated “debt service” related to the Regional Wastewater Treatment Plant agreement with the City of Georgetown.

TOTAL DEBTFY Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest SERVICE

FY2019 186,719 65,344 102,619 36,692 265,000 76,865 73,314 76,770 865,000 653,169 1,492,652 908,840 2,401,492FY2020 190,956 61,107 104,948 34,363 275,000 69,471 74,887 75,197 835,000 609,919 1,480,791 850,057 2,330,848FY2021 195,289 56,774 107,329 31,982 285,000 61,799 76,494 73,590 760,000 576,519 1,424,112 800,664 2,224,776FY2022 199,720 52,343 109,764 29,547 295,000 53,847 78,135 71,949 800,000 538,519 1,482,619 746,205 2,228,824FY2023 204,252 47,812 112,255 27,056 305,000 45,617 79,812 70,272 860,000 514,519 1,561,319 705,276 2,266,595FY2024 208,886 43,177 114,802 24,509 315,000 37,107 81,525 68,559 1,075,000 488,719 1,795,213 662,071 2,457,284FY2025 213,626 38,437 117,407 21,904 325,000 28,319 83,274 66,810 1,105,000 456,469 1,844,307 611,939 2,456,246FY2026 218,473 33,590 120,071 19,240 340,000 19,251 85,061 65,023 1,135,000 420,556 1,898,605 557,660 2,456,265FY2027 223,431 28,633 122,796 16,515 350,000 9,765 86,886 63,198 1,180,000 375,156 1,963,113 493,267 2,456,380FY2028 228,500 23,563 125,582 13,729 0 0 88,750 61,334 1,590,000 327,956 2,032,832 426,582 2,459,414

TOTALSRF 2011A SRF 2011B BB&T 2012A Refunding 2015AUSDA 2012B

55

Capital Improvements Budget

FY2019

Throughout the years, the District has responded to communities in need of water and wastewater services throughout Georgetown County. In existing communities, the District has obtained state and federal grant and/or low interest loan monies to fully fund system development or finance residential systems through assessment loans. Millions of dollars in water and wastewater assets have been conveyed to the District and integrated into the systems as development flourished, particularly on the Waccamaw Neck.

For the relatively short time that the District has been in existence, the focus has rested, largely, upon system growth. As the system has aged, the need for emergency and proactive repairs has increased. The District will continue to seek funding to bring needed services to the areas of the County needed water and sewer services. However, the District recognizes the need to maintain the existing system to continue the level of service expected by our customers. District staff has taken action to confront this issue aggressively, rather than allow possible problem areas to become environmental or fiscal emergencies. A comprehensive asset management plan is in the final stages of completion. This includes processes to evaluate the condition of various assets, thereby allowing for more informed prioritization and forecasting of capital needs.

Staff has prepared the FY2019 Capital Improvements budget with care. The Board has approved funding as indicated in the following summary for FY2019, while considering the 5-Year Capital Improvements Plan as a live document, for guidance and planning purposes.

56

FY2019 Capital Projects – Budget Requests

Water Main Rehabilitation Projects The FY2019 waterline rehabilitation projects consist of re-tapping all water services to the existing 12” PVC water main and abandoning the 2” and 4” mains. The estimated cost of this project is $550,000.

North Murrells Inlet Water Tank & Distribution System Improvements The North Murrells Inlet tank will improve system pressure and system sustainability. DHEC recommended the tank as an effective way to reduce the disinfection by-product, HAA5. Engineering and design has started with construction to begin late in FY2019. The estimated cost of this project is $2.8 Million.

Sewer Main Rehabilitation Projects The FY2019 sewer rehabilitation projects consist of 4 major gravity sewer repairs and pipe lining using CIPP. The first major repair will be replacing a damaged section of sewer pipe at Flagg St. in Murrells Inlet. The second major repair will be replacing the damaged sewer line on Sunfish St. in Murrells Inlet. The third major repair will be replacing the damaged sewer line on Springs Ave. in Pawleys Island. The fourth major repair will be replacing the damaged truss sewer line on 2nd Avenue in Kensington. The lining projects will restore structure to pipes that have not failed but are compromised and have a high risk of failure. The locations are determined by ranking the pipe’s condition, which is based on our TV crew’s assessment when inspecting. The estimated cost of these projects is $1 Million.

Fire Hydrant Replacement The project will provide for the replacement of approximately 10 hydrants that are not repairable and in desperate need of replacing. Staff will continue to evaluate the hydrants and recommend replacement every year as needed. The estimated cost of this project is $50,000 to be funded through the Capital Repair and Replacement Fund.

Force Main Risk Analysis Project The FY2019 force main analysis will focus on the pump station 290 sewer basin. This basin consists mostly of ductile and cast iron mains with limited record drawings. The project will evaluate the hydraulic capabilities as well as the remaining life expectancy of the pipe. The estimated cost of this will be $100,000 funded through Sewer Impact Fees.

PS 304 Bypass Engineering Continued growth in Murrells Inlet has prompted a need to re-evaluate the bypassing of pump station 304 in Murrells Inlet. As new flows come online, the existing pumping system is nearing capacity. The bypass project will re-route some of the flow currently going to the pumping system on business 17 and sending it to the plant via a new route. The estimated engineering cost is $90,000. Parkersville Water Line Improvements The project consists of approximately 4,000’ of 8” water main that will connect the Stables Park, Ford Rd, Parkersville Rd., and Petigru Dr. together which will improve system pressure, reliability, and water quality. The estimated cost of construction is $200.000.

57

Carter’s Crossroads Water Improvements This project consists of installing water mains on a portion of Choppee Rd. and Dennis Dr. in the Carter’s Crossroads Community. This project would provide water and fire protection to 44 homes. This project would be funded by a Community Development Block Grant. The estimated cost of the project is $550,000. Clarifier Arm and Beach Repair The skimmer arm is starting to run out of plane and begin to miss floating solids on the clarifier and hanging up on the scum beach. Estimated cost for the project is $40,000 funded by Depreciation and Capital Replacement.

High Tank Painting The District scheduled the Litchfield water storage tank for cleaning and painting in FY 2019. Estimated cost for the project is $250,000 funded by Capital Repair and Replacement.

ASR and Well Rehabilitation Water Operations operates a total of 4 ASR wells and 17 groundwater wells. ASR and Well Rehabilitation restores its most efficient condition by various treatments or reconstruction methods. ASR and Well Rehabilitation significantly reduce poor and deteriorating output performance due to well design, construction, and environmental factors. The estimated rehabilitation project cost is $70,000.

58

Murrells Inlet WWTP Grit Removal System Removal of grit prevents unnecessary abrasion and wear of mechanical equipment. The system will prevent grit deposition in pipelines and channels, and accumulation of grit in anaerobic digesters and aeration basins. Estimated cost of the project is $90,000 to be funded by Depreciation and Capital Replacement.

Pawleys Island WWTP Sludge Press The upgraded PIWWTP Sludge Press provides low Maintenance to the system due to less moving parts. It is an energy efficient system that produces a “drier cake”, which equals to less trips to the landfill. Pilot test indicates a $26,000 savings in tipping fees. Estimated cost of the project is $250,000 to be funded by Depreciation & Capital Replacement.

59

New Well – West Georgetown (Planning Phase) The New Well will be for the Kilsock Water System (Santee, Sampit, and Industrial Park). Currently, wells are running at least 18 hours a day (75% of total hours run per day). DHEC recommends adding additional capacity. Estimated cost of the project is $200,000 funded by Water Impact Fees for FY2019 and $1.5 million for FY2020 New Well – West Georgetown (Planning Phase).

Waccamaw Neck Raw Water Variable Frequency Drive Upgrades The raw water station will be converted from regular drives to Variable Frequency Drives (VFDs), which will reduce energy cost. Raw Water VFDs will be used to regulate constant Flow. The payback will be in 4 years with estimated savings of over $10,000 per year. The cost of the project is estimated to be $40,000 funded by Water Impact Fees.

Filter Butterfly Valves Replacement Seats on the filter butterfly valves are deteriorating. Pneumatic actuators are in need of replacement. Four sets of valves will be replaced each year for four (4) years. The cost of project is estimated to be $30,000 each year funded by Depreciation and Capital Replacement.

60

Pump Station Rehabilitation and Panel Replacement As part of the District’s ongoing Management Operations and Maintenance Program (MOM), the maintenance department will perform complete mechanical rehabilitations of the identified pump stations and panels in our Wastewater Collection Transmission System (WCTS). All of the internal piping, valves, pump bases, guide rails, etc. will be replaced. The cost of this effort is expected to be $120,000 to be funded by the Capital Repair and Replacement fund. Effluent Pump Rehabilitation

As part of the District’s asset maintenance plan, three effluent pumps are scheduled to be rebuilt this year. Total cost of the project is estimated to be $80,000 to be funded with Depreciation and Capital Replacement.

Continuing Asset Maintenance Programs The Maintenance Department was approved funding for $170,000 to continue the effort, begun several years ago, in the rehabilitation of manholes and wet wells throughout the sewer collection system. FY2019 will be a continuation from FY 2018 for Garden City Manhole/Wetwell Rehab for the program to be funded with Capital Repair and Replacement funds. Sandy Island WTP High Efficiency Motors and Drives High efficiency motors and drives will provide better control of the water quality, increased process automation, and reduce energy cost. Two (2) motors and drives will be installed to provide constant pressure for the water system. Cost of project is estimated to be $90,000 funded by Depreciation and Capital Replacement.

61

FY2019 Funding Sources – Water System

FY2019 Funding Sources – Wastewater System

FY2019 Capital Good Neighbor

Hydrant & Meter

Replace.

Hydrant Additions

Water Main

Rehab

Parkers ville Water

Line

Murrells Inlet Water

Tank

Carters Cross Road Water Line

West Georgetown

Well

Tank Repairs & Painting

Water Plant

Repairs/UpGrades

ASR & Well Rehab

TOTALS

Construction 40,000$ -$ -$ 550,000$ 200,000$ 2,800,000$ 550,000$ -$ -$ 320,000$ -$ 4,460,000$ Engineering 200,000 200,000 Equipment 100,000 25,000 125,000 Maintenance 310,000 265,000 40,000 615,000

TOTAL 40,000$ 100,000$ 25,000$ 550,000$ 200,000$ 2,800,000$ 550,000$ 200,000$ 310,000$ 585,000$ 40,000$ 5,400,000$

Water Impact Fees -$ -$ 25,000$ -$ 200,000$ -$ -$ 200,000$ -$ 300,000$ -$ 725,000$ DECAP Fund 100,000 550,000 - - 310,000 285,000 40,000 1,285,000 SRF Loan 2,800,000 2,800,000 USDA Loan - Other Grants 20,000 550,000 570,000 Pay As You Go 20,000 20,000

TOTAL 40,000$ 100,000$ 25,000$ 550,000$ 200,000$ 2,800,000$ 550,000$ 200,000$ 310,000$ 585,000$ 40,000$ 5,400,000$

SOURCE OF FUNDING

EXPENDITURES

FY2019 SewerMain

Rehab

Wetwell &

Manhole Rehab

Force Main Risk Analysis

Murrells Inlet

Bypass System

PS Rehab & Panel Replace

Clarifier Arm & Beach

Rehab PI WWTP

Grit Removal System

MI WWTP

Effluent Pumps PI

WWTP

Sludge Press PI WWTP

TOTALS

Construction -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Engineering 100,000 250,000 350,000 Equipment - Maintenance 1,000,000 170,000 213,000 40,000 90,000 60,000 250,000 1,823,000

TOTAL 1,000,000$ 170,000$ 100,000$ 250,000$ 213,000$ 40,000$ 90,000$ 60,000$ 250,000$ 2,173,000$

Impact Fees -$ -$ 100,000$ 250,000$ -$ -$ -$ -$ -$ 350,000$ DECAP Fund 1,000,000 170,000 213,000 40,000 90,000 60,000 250,000 1,823,000 Other Grants - Pay As You Go -

TOTAL 1,000,000$ 170,000$ 100,000$ 250,000$ 213,000$ 40,000$ 90,000$ 60,000$ 250,000$ 2,173,000$

SOURCE OF FUNDING

EXPENDITURES

62

5-Year Capital Improvements Program

63

CIP FY2019- FY2023: Plan Summary by System Component

CIP FY2019 - FY2023: Source of Funds Summary

Capital Program 2019 2020 2021 2022 2023 Total

Capital Equipment 430,000$ 285,000$ 325,000$ 225,000$ 225,000$ 1,490,000$ Water Distribution 4,265,000 715,000 765,000 815,000 865,000 7,425,000 Water Treatment/Storage 1,135,000 2,285,000 455,000 275,000 2,695,000 6,845,000 Wastewater Collection 1,733,000 3,263,000 1,563,000 1,663,000 1,763,000 9,985,000 Wastewater Treatment 440,000 305,000 305,000 125,000 - 1,175,000

TOTALS 8,003,000$ 6,853,000$ 3,413,000$ 3,103,000$ 5,548,000$ 26,920,000$

Projected Uses 2019 2020 2021 2022 2023 Total

Depreciation & Capital Replacement 3,108,000$ 2,728,000$ 2,973,000$ 2,763,000$ 2,708,000$ 14,280,000$ Water Impact Fees 725,000 2,050,000 25,000 25,000 2,525,000 5,350,000 Sewer Impact Fees 350,000 1,750,000 50,000 50,000 50,000 2,250,000 CDBG & RIA Grants 550,000 550,000 SRF Loans 2,800,000 2,800,000 USDA LoansUSDA GrantsFoundation Grants 20,000 20,000 20,000 20,000 20,000 100,000 O&M Operating Budget 450,000 305,000 345,000 245,000 245,000 1,590,000

TOTALS 8,003,000$ 6,853,000$ 3,413,000$ 3,103,000$ 5,548,000$ 26,920,000$

Carter's Crossroads Waterline

MI Elevated Water Storage Tank & Distribution Lines

64

CIP FY2019 - FY2023: Capital Equipment Purchases

Project/Item 2019 2020 2021 2022 2023 5-Yr Plan Total

Backhoe 100,000$ 100,000$

Generator 50,000 50,000

Generator PIWWTP 80,000 80,000

Vehicle Replacement 200,000 200,000

Generator 50,000 50,000

Mini-Excavator 60,000 60,000


Bypass Pump 50,000 50,000

Mack Truck 100,000 100,000


Generator 50,000 50,000


Generator 50,000 50,000


O & M BUDGET TOTALS 430,000$ 285,000$ 325,000$ 225,000$ 225,000$ 1,490,000$

65

CIP FY2019 - FY2023: Water Distribution Capital Projects


Capital Good Neighbor 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 200,000$ Fire Hydrant Replacement 50,000 50,000 50,000 50,000 50,000 250,000 Fire Hydrant Additions 25,000 25,000 25,000 25,000 25,000 125,000 Meter Replacement 50,000 50,000 50,000 50,000 50,000 250,000 Murrells Inlet Water Tank (SRF) 2,800,000 2,800,000 Watermain Rehab 550,000 550,000 600,000 650,000 700,000 3,050,000 Parkersville Waterline 200,000 200,000 Carters CR Waterline (Grant) 550,000 550,000

TOTALS 4,265,000$ 715,000$ 765,000$ 815,000$ 865,000$ 7,425,000$

66

CIP FY2019 - FY2023: Water Treatment and Storage Capital Projects


Altitude Valve Replace.-Debordieu 60,000$ 60,000$ Chemical Pump Controls - SI WTP 25,000 20,000 45,000 Effluent Pump Rehab - SI WTP 20,000 20,000 Filter Control Panels - SI WTP 60,000 60,000 High Efficiency Motors - SI WTP 90,000 90,000 Isolation Valve Replace - SI WTP 30,000 30,000 30,000 30,000 120,000 New Well - West Georgetown 200,000 1,500,000 1,700,000 Tank Painting 250,000 125,000 125,000 125,000 625,000 VFD SI WTP Raw Water 40,000 40,000 VT SCADA Upgrade 20,000 20,000 Well Rehab 40,000 40,000 45,000 45,000 170,000 WTP Sludge System - SI WTP (SRF) 300,000 300,000 Raw Water Intake Solution SI WTP 500,000 500,000 Filter Media Replace. SI WTP 45,000 45,000 45,000 45,000 180,000 Tank Mixers (New) 25,000 25,000 ASR Rehab 40,000 40,000 Primary Clarifier Repairs - SI WTP 50,000 50,000 Sludge Rake Replace - SI WTP 20,000 20,000 Weir Gasket Replacement SI WTP 100,000 100,000 Chemical Tank Replace - SI WTP 30,000 30,000 SED Basin Lining - SI WTP 150,000 150,000 Upgrade to 10 MGD SI WTP 2,500,000 2,500,000

TOTALS 1,135,000$ 2,285,000$ 455,000$ 275,000$ 2,695,000$ 6,845,000$

67

CIP FY2019 – FY2023: Wastewater Collection Capital Projects


Force Main Risk Analysis 100,000$ 50,000$ 50,000$ 50,000$ 50,000$ 300,000$ Manhole & Wetwell Rehab 170,000 138,000 138,000 138,000 138,000 722,000 PS 304 Bypass 250,000 1,700,000 1,950,000 PS 208 Panel 48,000 48,000 PS Panels 45,000 45,000 45,000 45,000 45,000 225,000 PS Rehab 120,000 130,000 130,000 130,000 130,000 640,000 Sewer Main Replace/Improve 1,000,000 1,100,000 1,200,000 1,300,000 1,400,000 6,000,000 Influent Line Replace - PIWWTP 100,000 100,000

TOTALS 1,733,000$ 3,263,000$ 1,563,000$ 1,663,000$ 1,763,000$ 9,985,000$

68

CIP FY2019 – FY2023: Wastewater Treatment Capital Projects


Clarifier Arm and Beach Rehab 40,000$ 40,000$ Effluent Pump Rebuilds 60,000 45,000 105,000 Grit Removal System - MI WWTP 90,000 90,000 Sludge Press - PI WWTP 250,000 275,000 525,000 Coat Launder Rings 25,000 30,000 55,000 Clarifier Drive - Secondary PI WWTP 80,000 80,000 160,000 Bar Screen - MI WWTP 100,000 100,000 Bar Screen - PI WWTP 100,000 100,000

TOTALS 440,000$ 305,000$ 305,000$ 125,000$ -$ 1,175,000$

69

CIP FY2019 – FY2023: Capital Repair and Replacement Fund


Manhole & Wetwell Rehab (170,000)$ (138,000)$ (138,000)$ (138,000)$ (138,000)$ (722,000)$

PS 208 Panel (48,000) (48,000)

PS Panels (45,000) (45,000) (45,000) (45,000) (45,000) (225,000)

PS Rehab (120,000) (130,000) (130,000) (130,000) (130,000) (640,000)

Sewer Main Replace/Improve (1,000,000) (1,100,000) (1,200,000) (1,300,000) (1,400,000) (6,000,000)

Clairifier Arm & Beach Rehab - PI WWTP (40,000) (40,000)

Coat Launder Rings PI WWTP (25,000) (30,000) (55,000)

Effluent Pump Rebuilds (60,000) (45,000) (105,000)

Grit Removal System - MI WWTP (90,000) (90,000)

Sludge Press - PI WWTP (250,000) (275,000) (525,000)

Bar Screen - MI WWTP (100,000) (100,000)

Bar Screen - PI WWTP (100,000) (100,000)

Clarifier Drive - Secondary PI WWTP (80,000) (80,000) (160,000)

Influent Line Replace - PI WWTP (100,000) (100,000)

Fire Hydrant Replacement (50,000) (50,000) (50,000) (50,000) (50,000) (250,000)

Meter Replacement (50,000) (50,000) (50,000) (50,000) (50,000) (250,000)

Water Main Rehab (550,000) (550,000) (600,000) (650,000) (700,000) (3,050,000)

Altitude Valve - Debordieu Tank (60,000) (60,000)

Chemical Pump Controls SI WTP (25,000) (20,000) (45,000)

Effluent Pump Rehab - SI WTP (20,000) (20,000)

Filter Control Panels SI WTP (60,000) (60,000)

High Efficiency Motors - SI WTP (90,000) (90,000)

Isolation Valve Replace - SI WTP (30,000) (30,000) (30,000) (30,000) (120,000)

Tank Painting (250,000) (125,000) (125,000) (125,000) (625,000)

VFD SI WTP Raw Water (40,000) (40,000)

VT SCADA Upgrade (20,000) (20,000)

Well Rehab (40,000) (40,000) (45,000) (45,000) (170,000)

Filter Media Replace. SI WTP (45,000) (45,000) (45,000) (45,000) (180,000)

ASR Rehab (40,000) (40,000)

Primary Clarifier Repairs - SI WTP (50,000) (50,000)

Slude Rake Replace. SI WTP (20,000) (20,000)

Weir Gasket Replacement SI WTP (100,000) (100,000)

Chemical Tank Replacement SI WTP (30,000) (30,000)

SED Basin Lining SI WTP (150,000) (150,000)

Total (3,108,000)$ (2,728,000)$ (2,973,000)$ (2,763,000)$ (2,708,000)$ (14,280,000)$

Projected Additions (From O&M) 50,000 50,000 50,000 50,000 50,000 250,000

Additions from Availability Surcharge* 1,659,652 2,112,586 2,574,413 3,045,265 3,525,277 12,917,194 Projected Balance July 1, 2018 4,300,000 2,901,652 2,336,238 1,987,652 2,319,917

Balance at End of Year 2,901,652$ 2,336,238$ 1,987,652$ 2,319,917$ 3,187,194$

Ending Balance as of : 06/30/19 06/30/20 06/30/21 06/30/22 06/30/23

*Assumes 10 Year Funding Plan with incremental increases

70

CIP FY2019 – FY2023: Account 908 Contingency Fund


- Projected Additions (From O&M) 25,000 25,000 25,000 25,000 25,000 125,000 Projected Balance July 1, 2018 825,000 850,000 875,000 900,000 925,000

Balance at End of Year 850,000$ 875,000$ 900,000$ 925,000$ 950,000$ Ending Balance as of : 06/30/19 06/30/20 06/30/21 06/30/22 06/30/23

71

CIP FY2019 – FY2023: Water Impact Fees


Fire Hydrant Additions (25,000)$ (25,000)$ (25,000)$ (25,000)$ (25,000)$ (125,000)$ Parkersville Waterline (200,000) (200,000) Tank Mixers (New) (25,000) (25,000) Upgrade to 10 MGD SI WTP (2,500,000) (2,500,000) Raw Water Intake Solution - SIWTP (500,000) (500,000) New Well - West Georgetown (200,000) (1,500,000) (1,700,000) WTP Sludge System - SI WTP (300,000) (300,000)

SRF Debt Service - MI Water Tower (171,800) (171,800) (171,800) (171,800) (171,800) (859,000)

Projected Additions (Impact Fees) 200,000 225,000 250,000 275,000 300,000 1,250,000 Projected Balance July 1, 2018 3,350,000 2,653,200 656,400 709,600 787,800

Balance at End of Year 2,653,200$ 656,400$ 709,600$ 787,800$ (1,609,000)$ Ending Balance as of : 06/30/19 06/30/20 06/30/21 06/30/22 06/30/23

72

CIP FY2019– FY2023: Sewer Impact Fees


Force Main Risk Analysis (100,000)$ (50,000)$ (50,000)$ (50,000)$ (50,000)$ (300,000)$ PS 304 Bypass (250,000) (1,700,000) (1,950,000)

Projected Additions (Impact Fees) 300,000 325,000 350,000 375,000 400,000 1,750,000 Projected Balance July 1, 2018 3,700,000 3,650,000 2,225,000 2,525,000 2,850,000

Balance at End of Year 3,650,000$ 2,225,000$ 2,525,000$ 2,850,000$ 3,200,000$ Ending Balance as of : 06/30/19 06/30/20 06/30/21 06/30/22 06/30/23

capital improvements budget · sc awwa/weasc best tasting water in south carolina– fourth year in...

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