www.cwwga.org

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I am pleased to present Columbus Water Works’ 2013 Annual Report to the Columbus and Fort Ben-ning communities. In striving to provide excep-tional water and sewer service to our region, CWW progresses through ongoing cycles of planning, analysis and construction with a highly regulated and infrastructure intensive business. Follow-ing a cycle of extensive construction based on Base Realignment and Closure (BRAC), 2013 was dominated by planning activities that prepare for the next round of Capital Upgrades. These plans included an updated Facilities Master Plan, IT Master Plan, Emergency GAP Analysis, Financial Plan, and Strategic Plan.

With the advent of the Whitewater, CWW ana-lyzed numerous river samples indicating excel-lent water quality. Also, in conjunction with the Inflow and Infiltration Reduction Program, CWW has stepped up its efforts in stream investigations seeking out and correcting sources of water qual-ity degradation. CWW staff continues to encour-age growing participation from our customers in recycling of Fats, Oils, and Grease (FOG) to go even greener in production of electricity at the South Columbus Water Resources Facility.

Our Chairman of the Board of Water Commis-sioners, Philip Thayer’s term came to a close this year. Columbus Water Works greatly appreciated his leadership while serving on the Board. We are looking forward to Billy Blanchard’s leadership as our new Chairman of the Board. Columbus Water Works also welcomes a new member to the Board, Reynolds Bickerstaff.

Columbus Water Works is pleased to have a new partner, Dr. Michael Dentzau, the new Execu-tive Director at Oxbow Meadows Environmental Learning Center. We look forward to ongoing sup-port for Dr. Dentzau and Columbus State Univer-sity in their environmental education endeavors.

Despite the ongoing tri-state water conflict and the recent Florida suit against Georgia, Columbus is in good shape to meet future drinking water needs. The U.S. Army Corps of Engineers is on schedule to revise the water control manual for the ACF and CWW continues to assert the need for sustainability of the 1350 cubic feet per second flow through Columbus. As Mark Twain is quoted, “Whiskey is for drinking, and water is for fight-ing.” I’m looking forward to a successful outcome, celebrated with a toast of Clean Wholesome Water.

Steven R. DavisPresident, Columbus Water Works

COLUMBUS WATER WORKSLEADERSHIP COLUMBUS WATER WORKS

BOARD OF WATER COMMISSIONERS

COLUMBUS WATER WORKS SENIOR MANAGEMENT

right to left (seated) Billy Blanchard and Philip Thayer, right to left (standing) Dr. Carole Rutland, Honorable Mayor Teresa Tomlinson and Karl Douglass

Columbus Water Works Executive Management Team right to left: Steven Davis, President Columbus Water Works; Timothy J. “Joey” Murphy, Senior Vice President Division of Customer and Financial Service; GwenDolyn H. Ruff, SPHR, Senior Vice President Division of Strategic Planning and Employee Services; Emory Blount, Executive Vice President; Cliff Arnett, Executive Vice President; Billy C. Cobb Jr., Senior Vice President Division of Communications, Engineering and Field Services; John T. Peebles, Senior Vice President Division of Water Resource Operations

Improving Water QualityWhitewater rafting has brought

another level of awareness to the quality and appearance of water in the Chat-tahoochee River and Columbus Water Works is doing its part to enhance this regional attraction.

Numerous river samples were col-lected and analyzed by CWW confirming our expectations…the water quality in the Chattahoochee is exceptionally good exceeding standards set by the Environ-mental Protection Agency.

A gauge to measure river flow was moved to the 14th Street Bridge to supply more accurate readings, and a webcam installed provides real-time video.

To ensure the health of streams flow-ing into the river, a new CWW program has been established to walk the creeks, discovering water quality problems and correcting them.

Fats, Oils and Grease Recycling Recycling of Fats, Oils and Grease

(FOG) is not only reducing the instances

of clogged sewers it is also helping to power the South Columbus Water Resource Facility (SCWRF). In 2013, CWW collected 1,950,000 gallons of grease from restaurants, apartment com-plexes and public recycling events. This is an increase of 100,000 gallons from last year’s collection. That waste is converted into methane and saves thousands of dol-lars in energy used to power the SCWRF.

In an effort to stem the contaminants that can make their way into the river. CWW is also collecting expired and unused pharmaceuticals during its annual recycling event with the Musco-gee County Sheriff’s Department and Keep Columbus Beautiful Commission.

Energy SavingsCWW has developed an Energy Man-

agement Roadmap to serve as a guide to increase efficiencies and continue to lower power consumption. Among the programs that have been implemented is the methane powered generators at the South Columbus Water Resources Facil-ity. This project uses household grease

and wastewater digestion to fuel the generators, allowing CWW to supple-ment the power needed to operate the wastewater treatment plant. CWW’s energy reduction activities have eased the effects of rising operational costs. As the Fats, Oils, and Grease (FOG) program grows through increased cus-tomer participation and commercial disposal, so goes the increase in on-site power generation with a corresponding demand decrease on the Georgia Power grid, especially during peak demand periods.

Oxbow MeadowsOxbow Meadows Environmental

Learning Center is committed to being the leader in environmental stewardship and sustainability through dynamic educa-tional programming and applied research.

Columbus Water Works, in conjunction with Columbus State University and the City of Columbus, created the Center in 1995. During 2013 CWW worked with the City of Columbus to build a pavilion and dog park.

GOING EVENGREENER

GREENFACT

G R E E N F A C TA webcam on the 14th street

bridge provides a real-time view

of river conditions. ga.water.usgs.gov/rivercam

Columbus Water Works is leading the way with projects that remove harmful sub-

stances from the water and sewer system, reduce energy use, increase efficiency and thus ultimately protect the environment.

The 2013 recycling event brought in 475 pounds of pharmaceuticals and 400

gallons of fats, oil and grease.

Inflow and InfiltrationThe project to identify and then reduce

storm water inflow and infiltration (I&I) into our sanitary sewer system began in 2011. Since this program began, CWW has consistently been ahead of schedule and continues to remain under budget. To date, CWW has investigated over 165,000 linear feet of sewer lines through smoke or dye testing as well as videoing techniques. These testing processes help identify places for storm water to enter the system. After areas were identified, CWW made hundreds of repairs to pipes and connections on public property, while reaching out to private property owners to eliminate direct connec-tions, such as gutter down spouts. It is extremely important to eliminate these connections, to properly maintain the sanitary sewer systems’ capacity.

Since 2011, in areas where repair work has been completed, CWW has seen the levels of I&I reduced by approximately 55% during peak rain events. The level of success achieved thus far could not have been done without the cooperation of residents and businesses in the commu-nity. There is still more work to be done and CWW continues to work on I&I with plans to begin work in the Lindsay Creek Basin and Main Post area of Fort Benning.

Efficiency UpgradesOver the course of 2013, CWW has

continued to actively improve our operational efficiency through capital projects. There are several projects that have provided an opportunity to avoid significant costs that otherwise would have accrued without these upgrades. The aeration system at the South Colum-bus Water Resources Facility (SCWRF)was replaced, which reduced the power

requirement, while improving the level of treatment. This also reduced the amount of chemicals needed to reduce foaming. Another upgrade that was completed at the SCWRF was a new grit removal system. This system has nearly doubled the amount of grit that can be removed monthly; thereby reducing the sandblast-ing effect grit has on the equipment.

Upgrades were also made at the North Columbus Water Resources Facility (NCWRF). The installation of a new and more efficient filter backwash system reduced the amount of water needed to clean the filters. Other operational improvements at the NCWRF include new sedimentation covers that have reduced the need for Powdered Acti-vated Carbon, which is used to control the taste and odors associated with algae. CWW also purchased a new piece of water quality monitoring equipment that provides real time analysis of incoming river water allowing for faster, more effi-cient reaction to potential taste and odor producing compounds.

As an organization, CWW has worked to increase efficiency in other areas of the organization as well. One example

is the implementation of new mobile devices used in the field allowing for better communication. These devices allow departments such as our Managed Maintenance Department to respond to work orders and update the status of these orders while still in the field. This improvement has shown significant improvements in the amount of work that is able to be completed in each day as well as improving the communication of project status.

Partnership with Fort Benning

Columbus Water Works continues to enjoy a strong partnership with Fort Benning in addressing water supply and water quality needs. Throughout 2013, CWW completed several construction projects on Fort Benning: installation of water and sewer mains in the Uchee Creek Campground area, rehabilitation of several water tanks, and the installation of water and sewer services for a new hotel facility. CWW looks forward to working on more projects in the future, expanding service areas, as well as maintaining the sound infrastructure and reliability cur-rently provided. CWW is proud to serve Fort Benning soldiers, families and their support personnel with safe and reliable drinking water.

GOING EVENGREENER

The strategic planning schedule was fast tracked in 2013 in order to place operation

plans on the same schedule ensuring better alignment and interface.

Strategic PlanningColumbus Water Works places an

emphasis on strategic planning at all levels in order to provide the highest quality of customer service today and into the future. Such system wide planning also focuses efforts on meeting organizational perfor-mance goals and evaluating progress.

CWW sets strategies, goals, and objec-tives supported by tactics, actions, and responsibilities with targeted measurable performance. Six individual, organized teams made up of diverse groups of CWW employees implement and manage each strategy.

A retreat facilitated by the Cunning-ham Center for Leadership Development at Columbus State University was an integral part of the process to update the Strategic Plan. As a result, CWW has identified 27 benchmarks designed to track performance in specific areas with regards to six strategies.

The updated plan has been distributed and the strategic initiatives are being com-municated throughout the organization.

Capital Improvement PlanThe Master Plan serves as a foundation

for the Capital Improvement Plan (CIP) which spans five years. Seventy have been identified, costing an estimated $95 million. The CIP must balance economic, social and environmental impacts. Since the economic impact of the entire list of projects is not feasible, projects will be prioritized based on the Strategic Plan for $65 million in bond issues.

COMPREHENSIVEPLANNING FOR THE

FUTURE

IT Master PlanAn assessment determined the current

state of CWW information systems and applications and identified gaps recom-mending solutions to address them. An assessment of staffing levels and ability to support information technology was also made. The result is a Technology Roadmap of key projects recommended for the Capital Improvement Program.

Community InvolvementOnce again the Columbus Water Works

has been recognized at the highest levels for its excellence and community involve-ment. Among the 80 honors in 2013 were: national awards for management and financial planning and state awards for facilities as well as the Keep Georgia Beautiful award for waste reduction and recycling. In addition, through 100% employee participation and numerous fundraisers CWW exceeded its United Way goal, donating more than $72,000. CWW continues to help students at all levels and remains active with Partner in Education Richards Middle School.

G R E E N F A C TThe cost of a 12 ounce

bottle of water = 833 gallons of

CWW tap water delivered to your house

2013 Initiatives and Related

Strategy Teams• Enhance Customer

Satisfaction• Strengthen Regional

Partnerships • Leverage Information

Technology• Optimize Infrastructure

Performance• Develop Sustainable

Workforce• Maintain Financial

Stability

Effective Utility

Management (EUM)

Initiative

StakeholderUnderstanding

and Support

ProductQuality

Customer Satisfaction

OperationalOptimization

FinancialViabilityInfrastructure

Stability

Operational Resiliency

Community Sustainability

WaterResourceAdequacy

Employee and Leadership

Development

FINANCIALSUMMARY

The Columbus Water Works financial condition remained strong at year end with reliable plants and systems to meet demands. A solid liquidity position, conservative budgeting, and programmed annual rate increases continue. Projected rate increases over the next five years are slightly below the national average. Columbus Water Works maintains one of the lowest rates among South-eastern cities.

During the fiscal year ended June 25, 2013, CWW delivered 10.48 bil-lion gallons of water and treated 9.4 billion gallons of wastewater. The water distribution system includes more than 6 million feet of pipe in Columbus and more than one mil-lion feet of pipe in Fort Benning. The water distribution system served 66,426 metered accounts. The sewage collection system included more than 5 million feet of pipe in Columbus and almost a million feet of pipe in Fort Benning.

Total combined Columbus and Ft. Benning operating revenues were $57.86 million, an increase over FY 2012 of $2.48 million.

Operating expenses before depre-ciation/amortization increased $2 million as compared to Fiscal Year 2012. Operating expenses, including depreciation/amortization, increased $2.5 million, up 4.81% from the Fiscal Year ended 2012.

Operating income for the year was $3.50 million, as compared to $3.50 million for FY 2012. This amount includes activities related to Fort Benning contractual operations.

Columbus Water Works expended $22 million for capital improvements in FY13.

Total liabilities and net assets at year-end were $613 million. Unrestricted reserves were within goals for 90 to 120 days of opera-tion and coverage for annual capital improvements.

For complete details of the Com-prehensive Annual Financial Report visit: cwwga.org/plaintext/reports/reports.aspx

Fiscal Year Ended June 25 2012 2013 $ Change % ChangeAssetsCurrent Assets and other Assets $ 101,509,429 93,873,968 (7,635,461) -7.52%Capital Assets 515,610,939 519,118,893 3,507,954 0.68%Total Assets 617,120,368 612,992,861 (4,127,507) -0.67% Liabilities Other Liabilities 18,185,663 16,868,692 (1,316,971) -7.24%Long-term Liabilities 204,900,209 194,350,660 (10,549,549) -5.15%Total Liabilities 223,085,872 211,219,352 (11,866,520) -5.32% Net Position Net investments in Capital Assets 330,758,829 341,983,921 11,225,092 3.39%Restricted for Capital Activities and Debt Service 22,937,391 20,994,501 (1,942,890) -8.47%Unrestricted 40,338,276 38,795,087 (1,543,189) -3.83%Total Net Position 394,034,496 401,773,509 7,739,013 1.96% Total Liabilities and Net Position $ 617,120,368 612,992,861 (4,127,507) -0.67%

CONDENSED STATEMENTS OF NET POSITION

$2 M$4 M$6 M$8 M

$10 M$12 M

2009 2010 2011 2012 2013$0

CHANGE IN NET POSITION

$14 M$16 M

MONTHLY WATER & SEWER RATES PER 20 CCFATLANTA

BIRMINGHAMCHARLESTON

CHATTANOOGARALEIGH

CHARLOTTEJACKSONVILLE

TAMPANASHVILLE

MOBILEGREENVILLE

AUGUSTAMONTGOMERY

SAVANNAHMACON

COLUMBUSHARRIS CO. WATER*

PHENIX CITYTALBOT CO. WATER*

$79.04

$81.69

$101.82$94.00

$103.18

$62.73

$80.47

$0 $100 $200 $300 $400$50 $150 $250 $350 $450

$112.02$111.20

$144.66

$171.56$154.23

$185.20$178.87

$244.88

$152.58$151.47

$153.66

$415.92

*water only Rates as of October 2013, with CWW proposed 2014 rates. Columbus rate excludes CSO charge.

$18 M$20 M

SERVING OURCUSTOMERSFiscal Year Ended June 25 2012 2013 $ Change % Change

Operating RevenuesWater Sales $24,490,188 $26,559,392 $2,069,204 8.45%Sewer Charges 27,327,820 27,848,244 520,424 1.90%Tapping, CSO fees and miscellaneous charges 3,557,976 3,456,615 (101,361) -2.85% Total Operating Revenue 55,375,984 57,864,251 2,488,267 4.49%

Operating ExpensesSystem Services 5,426,688 6,792,375 1,365,687 25.17%South Columbus Water Resources Facility 4,532,121 4,280,253 (251,868) -5.56%North Columbus Water Resources Facility 4,772,404 4,429,056 (343,348) -7.19%CSO Plants 1,027,584 1,144,192 116,608 11.35%Managed Maintenance 2,492,426 2,651,699 159,273 6.39%Engineering 1,349,543 1,356,374 6,831 0.51%Information Services 957,938 1,071,430 113,492 11.85%Water Quality Monitoring 1,556,156 1,729,145 172,989 11.12%Fort Benning 4,148,896 4,734,344 585,448 14.11%Customer Services 1,502,714 1,557,062 54,348 3.62%Meter Service Department 655,617 712,210 56,593 8.63%Finance, Employee Services and Administration 4,232,226 4,154,804 (77,422) -1.83%Meter Reading 881,937 925,108 43,171 4.90%Depreciation and amortization 18,332,548 18,827,841 495,293 2.70% Total operating expenses 51,868,798 54,365,893 2,497,095 4.81% Operating Income 3,507,186 3,498,358 (8,828) -0.25%

Non-operating Revenue (expenses)Interest Revenue 164,561 88,619 (75,942) -46.15%Ft Benning Financing Contract - 2009 Bond Issuance 4,860,492 4,860,492 - 0.00%Administrative fees and other revenue 792,138 586,336 (205,802) -25.98%Interest Expense (3,463,050) (1,981,914) 1,481,136 -42.77%City of Columbus participation expense (2,743,373) (2,718,589) 24,784 -0.90%Gain (loss) on disposal of assets 77,716 137,206 59,490 76.55% Total non-operating revenue (expenses) (311,516) 972,150 1,283,666 -412.07% Income before capital grants and contributions 3,195,670 4,470,508 1,274,838 39.89%

Capital grants and contributions 4,868,656 3,268,505 (1,600,151) -32.87%Change in Net Position 8,064,326 7,739,013 (325,313) -4.03%

Net Assets at Beginning of Year 385,970,170 394,034,496 8,064,326 2.09%Ending Net Position $394,034,496 $401,773,509 $7,739,013 1.96%

CONDENSED STATEMENT OF REVENUE, EXPENSES & CHANGES IN NET POSITION

OPERATING REVENUES BY SOURCE

2013

EXPENSES BY

FUNCTIONS

TAPPING FEES & MISC.

6%

SEWER CHARGES

48%

WATER SALES46%

WASTEWATER44%

WATER44%

OTHER12%

Columbus Water Works employees go above

and beyond for customer satisfaction.

The Customer Satisfaction Index (CSI) has been conducted monthly since its inception in 2004. The survey is admin-istered to a random telephone sample of about 100 customers per month. It measures customer’s perceptions of: reliability, water quality, value/price, customer service and information.

Information from the survey assists in development and implementation of operational improvements. One ongoing initiative is to focus attention specifically on how “everything we say and do” sends a message to customers.

Our Mission Provide our community a

safe and dependable drinking water supply, enhance our water resources by collecting and treat-ing wastewater, and promote a legacy of responsible economic and environmental stewardship.

Our VisionTo be an outstanding provider

of utility services, dedicated to protecting the environment, aspiring to new opportunities and compelled to excel in service to our community.

Our ValuesIntegrity, Customer Focused,

Employee Oriented, Environ-mental Stewardship, Innovation and Community Leadership.

AND THENSOME

Monthly Customer Satisfaction Score

CSI Target (825/FY)

Cumulative Average Score

Margin of Error ± 25

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915878

Main Office (706) 649-3400

www.cwwga.org

1421 Veterans ParkwayP.O. Box 1600

Columbus, GA 31902-1600