2015-2016 GCWA Approved Operating Budgets

Gulf Coast Water Authority

Serving Industrial, Municipal and Agricultural interests across Galveston, Brazoria and Fort Bend counties.

Offices in Texas City and Alvin, Texas

APPROVED OPERATING BUDGETS

FOR FISCAL YEAR ENDING AUGUST 31, 2016 AS PRESENTED TO THE BOARD OF DIRECTORS

GULF COAST WATER AUTHORITY

Approved Operating Budget

For Fiscal Year September 1, 2015 to August 31, 2016

TABLE OF CONTENTS

Operating Budget Summary 1

Proposed Budget (all Funds - Summary) 14

Canal Operations (Fund 08) 17

Industrial Operations (Fund 02) 24

Thomas S. Mackey Water Treatment Plant (Fund 06) 31

1997 Galveston Projects (Fund 12) 38

Chocolate Bayou Operations (Fund 21) 43

League City Southeast Water Purification Plant (Fund 04) 50

Pearland Southeast Water Purification Plant (Fund 22) 55

Galveston County WCID #12 (Fund 10) 60

1998 A-B Series Projects (Fund 14) 63

1998 C Series Texas City Projects (Fund 15) 66

1998 D Series La Marque Projects (Fund 16) 69

2002 Galveston Projects (Fund 19) 72

Northline Group (Fund 23) 75

Southline Group (Fund 24) 78

Appendix A-1

Profile of the Government Agency The Gulf Coast Water Authority (then named Galveston County Water Authority) was created in 1965 by the 59th regular session of the Texas Legislature. The Authority is a conservation and reclamation district, body politic and corporate, and a governmental agency of the State of Texas created and operating under the provisions of a series of acts compiled as Vernon’s Annotated Texas Civil Statutes, Article 8280-1, enacted pursuant to the provisions of Section 59 of Article XVI of the Texas Constitution. The Authority provides surface water for industry, agriculture and municipalities in Brazoria, Fort Bend and Galveston counties. The Authority is governed by a ten (10) member Board of Directors. They are appointed in the following manner:

Five (5) by Galveston County Commissioners Court with two (2) being representatives of Industry, one (1) being a representative of Municipalities and two (2) being representatives at-large;

Three (3) members by Brazoria County Commissioners Court with one (1) being a representative of Industry, one (1) being a representative of Municipalities and one (1) being a representative of Agriculture;

Two (2) members by Fort Bend County Commissioners Court with one (1) being a representative of Municipalities and one being a representative at-large.

Appointees serve two year terms, staggered five one year, and five the next year. Term of office coincides with the Authority’s fiscal year, beginning September 1st. Three Operating Divisions The Authority’s operations are divided in three (3) separate divisions as described below: Canal Operations – The Authority’s Canal Operations is headquartered in Alvin, Texas. Canal Operations are further divided into two separate systems or Operating Funds, as designated by customer contracts. The American/Briscoe Canal System and the Juliff/Chocolate Bayou System. Combined, these two systems include approximately 400 miles of main-line canals and laterals, and 380,000 acre-feet of surface water rights on the lower basin of the Brazos River. Historically, surface water is delivered to: Approximately 18,000 acres of commercial and hybrid seed rice are irrigated annually in

Brazoria and Galveston counties as well as a Rice Research Facility located outside Alvin, Texas, providing world-wide technology for the rice industry when not in drought conditions,

Industrial customers served directly by the Canal Operations including INEOS Olefins and Polymers (INEOS) and Ascend Performance Materials (Ascend),

Municipal customers directly served include the cities of Sugar Land, Pearland and Missouri City, as well as Fort Bend WCID #2 and Pecan Grove MUD,

The Industrial and Municipal customers in Galveston County, who are further identified in the Industrial and Thomas Mackey Water Treatment Plant Operations below.

Galveston County Industrial Operations System – Prompted by land subsidence caused by the over withdrawal of groundwater, a private venture by Texas City industries in the late 1940’s constructed an extension of the Briscoe and American Canal System to provide surface water to the rapidly growing industrial complex in Texas City following World War II. Through

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acquisitions and exchanges, the Galveston County Industrial Operations System was acquired by the Authority in 1971. Galveston County Industrial Operations System operates an 8,700 acre-feet off-channel reservoir, the industrial/municipal canal delivery system and an industrial pump station contracted for 60 million gallons of surface water per day to Texas City industries. Industrial customers served include DOW/Union Carbide Corp., Marathon Galveston Bay Refinery, Marathon Texas Refining Division, Valero Texas City Refinery, Eastman Chemical Company, Ashland Specialty Chemicals, and the City of Texas City raw water system. The Thomas S. Mackey Water Treatment Plant facility is also a customer of the Galveston County Industrial Operations System as further described below. Thomas S. Mackey Water Treatment Plant – The Authority owns and operates the Thomas S. Mackey Water Treatment Plant located in Texas City. The plant was originally constructed by the City of Texas City in 1978, acquired by the Authority in 1983, and expanded in 2000 to its present capacity. This 50 million gallon per day (MGD) conventional surface water plant serves (13) thirteen water utilities in Galveston County. Those customers include the cities of Texas City, La Marque, Galveston, Hitchcock, League City, Galveston County WCID #1 (Dickinson), Galveston County WCID #8 (Santa Fe), Galveston County WCID #12 (Kemah/Clear Lake Shores), Galveston County MUD #12 (Bayou Vista), Galveston County Fresh Water District #6 (Tiki Island), Bacliff MUD, Bayview MUD, and San Leon MUD. The Authority’s Administrative Office is located in Texas City where all management, financial, human resources, purchasing and land administration are provided. General Statement of Economic Conditions and Outlook The Texas Economy. According to the Texas Comptroller of Public Accounts June 2015 issue of “The Texas Economy-Economic Outlook,” Texas added jobs in all of the 11 major industries. “Pre-recession Texas employment peaked at 10,638,100 in August 2008, a level that was surpassed in November 2011, and by February 2015 Texas added an additional 1,129,800 jobs. Job growth, sales tax collections and building permits all signal that the Texas economy continues to outpace the national economy…Texas’ unemployment was 4.2 percent for April 2015, down from 5.2 percent in April 2014. The Texas unemployment rate has been at or below the national rate for 100 consecutive months.” The Local & Regional Economy. The Authority and its customers are part of the Greater Houston Metropolitan Area. According to the Texas Workforce Commission, the Houston Metro Area lost 400 jobs in April ’15. This marks the beginning of the anticipated downturn in nonfarm employment precipitated by the drop in oil prices that began last fall. For the 12-months ending April ’15, the region created 69,100 jobs. As the Houston region moves deeper into ’15, the 12-month total will continue to decline. On the brighter side, The Houston-Galveston Area Council (HGAC) is projecting the eight county region will add more than 1.4 million jobs over the next 25 years, with the fastest growing area to be Fort Bend County. Continued population growth within the Authority’s service area will necessitate the demand for more water. GCWA’s Revenue Source The Authority does not receive money from the State of Texas, Regional, or County government; nor does it collect any type of taxes. Income is derived from the sale of surface water. This revenue covers the cost of operation, maintenance, and capital improvements as

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well as repayment of outstanding bond debt. Revenue bonds are sold to finance large, capital improvement projects needed to maintain the Authority’s vast investment in infrastructure to insure reliable delivery of water to its customers. Impact of the Texas Drought and Recovery No budget report on any Texas surface water provider would be complete without a discussion of the recent Texas drought and recovery. For the Authority, recognition of the drought began in 2009. Each year since, the Authority has struggled with securing enough stored water commitments from the Brazos River Authority to insure a reliable water supply for its customers whenever the Authority’s ‘run of the river’ water rights were not available due to extreme low flows in the lower Brazos River. Purchase of that additional stored water supply as insurance against low river flows has sustained the Authority’s ability to meet customer’s demands. In January 2014, the Brazos River Authority notified the Authority that the low water levels in their eleven reservoirs would prevent them from making additional stored water available for 2014. As a result, the Authority could not make a firm commitment to its agricultural customers that water would be available for the first time in the Authority’s 50 year history. Thus, the Authority was only able to irrigate 3,100 acres of rice instead of its average 18,000 acres. The drought ended with the rainfalls that began in late April, 2015. According to the National Center of Environmental Information (formerly the National Climate Data Center), precipitation total for the contiguous U.S. was the wettest May and month of any month in the 121-years of recording keeping. State wise it was the wettest May in Texas. As of June 2015, only 0.53% of the state of Texas remains in a Moderate Drought condition. The state’s reservoirs are 83.8% full. Thus, the Authority anticipates the ability to purchase 30,000 acre/feet of stored water from the Brazos River Authority to insure we can meet anticipated demand from our entire customer base. Budget Construction The Texas Water Code Section 49.057(b) requires the Board of Directors of the Gulf Coast Water Authority (GCWA) to adopt an annual operating budget. This budget document contains the summaries and details of the operating & maintenance funds, and capital improvement funds, and bond funds for Fiscal Year 2016 (FY2016) for the fourteen (14) active Funds and two (2) inactive Funds within GCWA. These funds are identified as:

Operation & Maintenance Funds:

Fund 02 - Texas City Industrial Operations - includes raw water storage, pump station, and raw water distribution system to serve the Industrial and Municipal customers in Texas City. Participants are all Texas City industrial customers as well as the TMWTP customers.

Fund 04 - League City Southeast Water Purification Plant (SEWPP) – the Authority is the City of League City’s agent as a co-participant in the Southeast Water Purification Plant located near Ellington Field, in Houston; currently contracting for 21.5 MGD.

Fund 06 - Thomas S. Mackey Water Treatment Plant (TMWTP) - includes the 50 MGD water plant and potable water distribution system to 13 participating communities across Galveston County.

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Fund 08 - American/Briscoe (A & B) Canal Operations - includes water rights, pump stations and two parallel open channel, clay lined canals stretching across three counties from the Brazos River to Texas City. Participants are all of the Authority’s customers with the one exception of INEOS.

Fund 21 - Juliff/Chocolate Bayou Operations – originally designated to finance the purchase of this system, including water rights, pump stations and two separate open channel, clay lined canals stretching across Fort Bend and Brazoria counties. Participants in the purchase are cities of Texas City, Galveston, and Pearland, as well as INEOS. Participants in the O&M of this system are INEOS and interruptible, annual contracts with rice farmers.

Fund 22 - Pearland Southeast Water Purification Plant (SEWPP) – the Authority is the City of Pearland’s agent as a co-participant in the Southeast Water Purification Plant located near Ellington Field, in Houston; currently contracting for 10 MGD.

Bond Funds:

Fund 15 - 1998 C Series Texas City Projects - financed construction of potable water distribution lines within Texas City; the City of Texas City being the only participant.

Fund 16 - 1998 D Series La Marque Projects - financed the construction of potable water distribution lines within La Marque; the City of La Marque being the only participant.

Fund 19 - 2002 Galveston Projects - financed the construction of potable water distribution lines on Galveston Island; the City of Galveston being the only participant.

Bond/Capital Improvement/Maintenance Funds:

Fund 10 - Galveston County WCID #12 - originally a bond fund since retired and is now used for O&M of the transmission line north of Bacliff to Kemah Only WCID#12 is a participant.

Fund 12 - 1997 Galveston Projects - originally designated to finance the construction of various potable water distribution lines on Galveston Island including the new causeway crossing line; and now includes to operation and maintenance of the causeway line; the City of Galveston is the only participant.

Fund 14 - 1998 A-B Series South Projects - originally designated to finance the construction of the expansion of the Thomas Mackey WTP and potable water transmission lines running southward to connect to existing lines on Galveston Island and Hwy 6; and but now includes the O&M cost of the South Project Lines. Participants include all TMWTP customers except San Leon MUD, Bacliff MUD, Bayview MUD, and WCID#12.

Fund 23 - TMWTP Northline Group - a new fund for O&M of the transmission line from the TMWTP to Dickinson Bayou; established per customer contracts. Participants include La Marque, Texas City, WCID#1, WCID#12, Bacliff MUD, San Leon MUD and Bayview MUD.

Fund 24 - TMWTP Bayshore Group - a new fund for O&M of the transmission line from the Dickinson Bayou to Bacliff; established per customer contracts. Participants include WCID#1, San Leon, Bayview MUD, Bacliff MUD, and WCID#12.

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Other Special Funds (Inactive):

Fund 01 - Administrative Special Projects Fund - originally created to separately track administrative costs for startup of new funds and projects; is now established as a self-insurance reserve fund. (not active)

Fund 20 - Thomas Mackey Water Treatment Plant Expansion - originally created to expand the water plant to 70 MGD in 2011, however the participants withdrew due to the economic downturn in 2009. Fund to be closed out with Board approval.

Administrative Office Cost Allocation: The Authority’s Administrative Office costs are allocated amongst seven (7) funds: Industrial Operations (9.88%), League City Southeast Water Purification Plant (1.16%), Water Treatment Plant (32.77%), Canal Operations (35.93%), 1997 Galveston Projects (1.10%), Chocolate Bayou Operations (18.43%), and Pearland Southeast Water Purification Plant (0.73%). The allocation methodology is based on three (3) categories: number of employees, number of purchase orders and number of invoices for the current fiscal year as it pertains to each of the above mentioned funds.

Each Fund’s Budget Notes section provides additional details of revenues and expenses for FY2016. Detailed schedules, worksheets, notes and other documentation support the summary budget presented here and are included as elements of the proposed budgets by reference. The summary and detailed schedules within this report are presented using the cash basis of accounting. General Elements of the Budget Total Operating Revenues for all Divisions for FY2016 are projected to be $50,376,006.64. Other Revenues totaling $5,918,861.48 add to create total projected revenues of $56,294,868.13. Total O&M Expenses for all Funds are projected to total $37,142,148.73. Non-debt funded capital improvements total $11,502,500.00 and debt funded capital improvements total $13,765,000.00, comprised of $11,165,000.00 in bond proceeds for the Industrial Operations and $2,600,000.00 in note proceeds for the Water Treatments Plant Operations. GCWA wide bond payments and other uses total $9,120,152.16. The remaining net balance will be used to fund capital reserves and operating reserves. Key assumptions for budgeted wages, salaries and employee benefits are stated below:

Salaries and wages were budgeted with 3% for continuation of the Board approved Pay for Performance Plan, which allows for promotions, market equalizations and performance based salary increases, as well as a COLA of 1.94%.

Staff continues to develop a long term strategic plan to improve the overall health of GCWA employees and limit future health insurance costs increases to GCWA. The proposed FY2016 budget includes an increase of 15% in group health insurance rates. Staff continues to look at other options to be considered in the strategic plan for future years including self-insurance, employee wellness programs, Health Savings Accounts, and other cost savings measures.

Group retirement expenses were budgeted at a rate of 12.67% of payroll. This is the same rate utilized by staff for the FY2015 budget.

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Summary of Each Major Fund Water Contracts, Revenues and Water Rates American/Briscoe Canal Operations Fund The American/Briscoe Canal Operations Fund includes contracts for delivery of 159.980 MGD- wholesale surface water supply.

The American/Briscoe Canal Operations Fund water contracts, by County, they are: Galveston County-

o Galveston County Industrial Operations - 110.762 MGD, Brazoria County-

o Ascend Performance Materials - 17.866 MGD, Fort Bend County -

o Fort Bend WCID #2 4.000 MGD o Missouri City 15.000 MGD o Pecan Grove MUD 2 2.354 MGD o The City of Sugar Land 10.000 MGD

The Authority also has Option Water Agreements; by County, they are:

Galveston County – o Future Thomas Mackey Water Treatment Plant Expansion – 8.00 MGD

Brazoria County – o City of Pearland - 10.000 MGD,

Fort Bend County – o City of Sugar Land – 10.000 MGD o Fort Bend WCID #2 - 6.500 MGD

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There are three (3) key elements to the American/Briscoe Canal Operations Fund FY2016 budget, as highlighted below:

Increases to the wholesale water rates are proposed for FY2016, Purchase of an additional 30,000 acre feet of interruptible water, and Increases to the total Full Time Equivalent (FTE) number of employees.

The proposed FY2016 wholesale water rate charged to the customers is proposed to increase to $192.47 per MG for all customers with the exception of Pecan Grove MUD. The wholesale water rate for Pecan Grove MUD is proposed to increase to $365.33 per MG. Pecan Grove MUD has their own stored water contract, managed by GCWA, with BRA and is thus entitled to 3,100 acre feet of stored water of the American/Briscoe Canal Operations Fund’s 73,208 acre feet of stored water; (firm and interruptible). As proposed, Total Water Sales will increase to $12,234,270.17. The purchase of an additional 30,000 acre feet of interruptible water from the Brazos River Authority is the single largest cost increase, $2,115,000.00, for GCWA. As a result of the abnormally wet months of May and June 2015, this water is anticipated to be available. During the recent drought this interruptible water was not available for purchase from the Brazos River Authority and subsequently not budgeted in FY2015. Budgeted Operations & Maintenance (O&M) expenses total $5,462,399.85, Raw Water totaling $4,917,736.82 and Capital Improvements totaling $1,854,133.50.

Raw Water cost expenses total $4,917,736.82 less Pecan Grove MUD Raw Water costs of $218,550.00 for a net Raw Water Cost of $4,699,186.82. Based on 157.628 MGD, yields a Raw Water Rate $81.68 per MG.

O&M rates are based on 159.9804 MGD, at a rate of $79.04 per MG. Capital Improvements rates are based on 159.9804 MGD, at a rate of $31.75 per MG.

Galveston County Industrial (and Municipal) Operations Fund The Galveston County Industrial (and Municipal) Operations Fund provides 110.762 (MGD wholesale surface water supply to their customer base in Texas City:

Marathon Galveston Bay Refinery (GBR) 28.600 MGD DOW/Union Carbide Corp. 12.931 MGD Eastman Chemical Company 8.542 MGD Valero Refining Texas 6.510 MGD Marathon Texas Refining 4.000 MGD City of Texas City 0.019 MGD Thomas S. Mackey Water Treatment Plant 49.700 MGD Ashland Specialty Chemicals 1.000 MGD

There are six (6) elements to the Galveston County Industrial Operations Fund FY2016 Budget, highlighted as follows:

Anticipated decrease in electrical power cost, Projected increase to Raw Water cost from the American/Briscoe Canal Operations

Fund, Increase to O&M,

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Increase to Capital Improvement cost, Decrease to Applied cash to offset expenses, and Increase Bond cost.

As proposed, Total Water Sales will increase to $15,285,731.23. Budgeted Power Cost expenses total $734,682.06. Raw Water cost expenses total $7,781,171.16. Operations & Maintenance (O&M) expenses total $630,683.47 at the Texas City Reservoir and $227,000.00 at the Industrial Pump Station. Related Capital Improvements of $4,972,000.00 for the Texas City Reservoir and $10,270,000.00 for the Industrial Pump Station, which are offset with Bond Proceeds of $11,165,000.00 plus $800,000.00 in cash to offset capital expenditures. Anticipated Bond Payments totaling $2,724,031.54 are offset with $98,223.00 cash applied from FY2014 Bond Revenue.

Power cost at the Industrial Pump Station is based on 42.792 MGD, $47.04 per MG based on Estimated Metered Sales. The City of Texas City, the Thomas S. Mackey Water Treatment Plant and Ashland Specialty Chemicals to not pay power costs as they are not fed off the Industrial Pump Station.

Raw water cost is based on 110.762 MGD, $192.47 per MG. O&M costs are split amongst the Texas City Reservoir is based on 110.762 MGD and

Industrial Pump Station based on 60.062 MGD: o Reservoir costs are $15.83 per MG, o Industrial Pump Station costs are $10.35 per MG.

Capital improvement costs are split amongst the Texas City Reservoir and Industrial Pump Station less any cash reserves or bond proceeds:

o Reservoir costs are based on 110.762 MGD, at a rate of $43.34 per MG.

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o Industrial Pump Station costs are based on 60.062 MGD, at a rate of $69.56 per MG. The Thomas S. Mackey Water Treatment Plant and Ashland Specialty Chemicals do not pay for Capital Improvement costs associated with the Industrial Pump Station.

Bond cost are split in same manner as the Capital Improvements. Additionally, the Thomas S. Mackey Water Treatment Plant is receiving a $98,223.00 cash credit to offset bond costs receipts in 2014.

o Reservoir costs are based on 110.762 MGD, at a rate of $19.99 per MG for Water Treatment Plant customers with a 12-Year Bond payment and $18.54 per MG for Industrial customers based on a 21-Year Bond payment.

o Industrial Pump Station costs are based on 60.062 MGD, at a rate of $84.38 per MG. The Thomas S. Mackey Water Treatment Plant and Ashland Specialty Chemicals do not pay for Bond Costs associated with the Industrial Pump Station.

Thomas S. Mackey Water Treatment Plant Fund

The Thomas S. Mackey Water Treatment Plant (WTP) is contracted to provide 49.70 MGD treated water supply to the following Galveston County customers:

City of Texas City 11.5050 MGD City of La Marque 2.7800 MGD Galveston County WCID #1 4.1650 MGD Bacliff MUD 1.1900 MGD Bayview MUD 0.3880 MGD Galveston Cnty WCID #12 1.0430 MGD

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San Leon MUD 1.7850 MGD City of League City 2.5440 MGD City of Galveston 20.9900 MGD City of Hitchcock 1.5000 MGD Gal. Cnty WCID #8 1.0000 MGD Galveston Cnty MUD #12 0.4500 MGD Gal. Cnty FWD #6 0.3600 MGD

There are four (4) key elements to the WTP FY2016 budget highlighted as follows:

Increase to Raw Water cost, Increase to Capital Improvement cost, Increase to Notes Payable for Capital Improvement cost, and Decrease to O&M.

The proposed FY2016 Reserved Capacity Water Rate (Raw Water, Capital & Note Payment) charged to customers is proposed to increase to $459.56 per MG. The Operations & Maintenance (O&M) Rate, based on estimated water usage, is $556.39 per MG. The proposed water rate changes for WTP customers will result in total revenues of $14,439,832.95. Budgeted Operations & Maintenance (O&M) expenses total $6,103,055.52, Raw Water totaling $4,927,550.44, Proposed 5-Yr Note Payable $574,595.49 and Capital Improvements totaling $5,434,631.50, which is offset by $2,600,000.00 in note proceeds.

Raw water cost is based on 49.700 MGD, at a rate of $271.63 per MG. Capital Improvements rates are based on 49.700 MGD, at a rate of $156.26 per MG.

The Capital Improvements rate excludes $2,600,000.00 in capital projects for which the Authority will secure a 5-Year Note.

The 5-Year Note rates are based on 49.700 MGD, at a rate of $31.67 per MG. The annual debt service on this note is estimated to be $574,595.49.

O&M rates are based on estimated usage of 30.052 MGD, at a rate of $556.39 per MG. O&M expenses are based on anticipate usage with a true-up adjustment at the end of the fiscal year.

Juliff/Chocolate Bayou Operations Fund The Juliff/Chocolate Bayou Operations provide 15.00 MGD of wholesale surface water supply in Brazoria County to INEOS. The Authority also has Option Water Agreements with INEOS for an additional 9.00 MGD. When available, the Authority has the ability to provide Interruptible Water for Agricultural Customers in Brazoria County; until the recent drought, this equated to 85,000 ac-ft diverted per year based on a 5-year average as self-reported to TCEQ. There are four (4) key elements to the Chocolate Bayou Operations FY2016 budget, highlighted as follows:

Decrease to applied cash to offset expenses, Decrease to capital improvement cost, Increase to raw water cost and Decrease to Interruptible Water, Irrigation customers.

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The proposed FY2016 wholesale water rate charged to the customers is proposed to increase to $465.235 per MG. The proposed FY2016 Option Water Agreement water rate is proposed to increase to $93.05 per MG. The proposed water rate changes for Chocolate Bayou Operations customers will result in total revenues of $2,935,085.23. Budgeted Operations and Maintenance (O&M) expenses of $2,002,792.11 are offset by cash applied of $670,393.56 and revenues from other water supply agreements of $387,923.65, net O&M of $944,474.90. Capital Improvements of $1,082,508.50. Raw Water cost expenses total $520,178.18.

Raw water cost is based on 15.00 MGD, $95.00 per MG. O&M rates are based on 15.00 MGD, at a rate of $172.51 per MG. Capital Improvements rates are based on 15.00 MGD, at a rate of $197.72 per MG.

1997 Galveston Projects Fund Galveston Projects provides wholesale water supply to the City of Galveston. There is one (1) key element to the Galveston Projects FY2016 budget, as highlighted below:

Increase to capital improvements.

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As proposed, Total Water Sales will increase to $312,166.00. Budgeted Operations and Maintenance (O&M) expenses $61,121.00 and Capital Improvements of $251,045.00. The City of Galveston is the sole participant. League City Southeast Water Purification Plant The Authority has a contract with the City of Houston, Southeast Water Purification Plant (SEWPP) located near Ellington Field, on behalf of the City of League City. The Authority is a co-participant of 21.50 MGD of the capacity of SEWPP’s 200.00 MGD facility. The City of League City receives their water from the SEWPP from two (2) transmission lines:

42” Transmission Line adjacent to State Highway 3 for 16.50 MGD, and 36” Transmission Line adjacent to Beamer Road for 5.00 MGD.

As proposed, Total Water Sales will increase to $3,581,928.55. Budgeted water cost from City of Houston and City of South Houston total $2,691,954.12. Budgeted Operations and Maintenance (O&M) expenses $26,872.43. Capital Improvements of $863,102.00, which includes $862,000.00 for an engineering study for the replacement of the Highway 3 Line. General and Administrative (G&A) expenses represent their pro-rata share of 1.16%. Pearland Southeast Water Purification Plant The Authority has a contract with the City of Houston, Southeast Water Purification Plant

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(SEWPP) located near Ellington Field, on behalf of the City of Pearland. The Authority is a co-participant of 10.00 MGD of the capacity of SEWPP’s 200.00 MGD facility. The City of Pearland receives their water from the SEWPP from one (1) 96” transmission line west of the SEWPP. As proposed, Total Water Sales will increase to $1,056,992.51. Budgeted water cost from City of Houston total $1,041,186.62. Budgeted Operations and Maintenance (O&M) expenses $15,112.39. Capital Improvements of $693.50. General and Administrative (G&A) expenses represent their pro-rata share of 0.073% Northline Group, Bayshore Group, WCID #12 and 1998 A-B Series South Projects Thomas S. Mackey Water Treatment Plant customers benefit from these distribution lines for the delivery of treated water for their customers. In a change from prior years the maintenance cost, (capitalized cost) is now divided in to separate funds as noted earlier as required by their contracts with the Authority. This capitalized maintenance cost to each group for FY2016 budget, is highlighted as follows:

Increase to capital improvements. As proposed, Total Water Sales will increase to $140,000.00 for the Northline Group, $40,000.00 for the Bayshore Group, $25,000.00 for WCID #12 and $325,000.00 for 1998 A-B Series South Projects. Budgeted Capital Improvements for the Northline Group is $140,000.00, the Bayshore Group is $40,000.00, WCID #12 is $25,000 and the 1998 A-B Series South Projects is $325,000.00.

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FISCAL YEAR 2015 - 2016 BUDGET

Budget Year Budget Year

2014-2015 2015-2016

OPERATING REVENUES 37,326,672.23 50,376,006.64

OTHER REVENUES 6,637,359.18 5,918,861.48

TOTAL REVENUES 43,964,031.41 56,294,868.13

SALARIES & WAGES 4,142,351.22 4,694,261.60

PROFESSIONAL FEES 1,127,500.00 1,121,000.00

PURCHASED & CONTRACTED SERVICES 15,992,443.93 22,528,490.35

SUPPLIES, MATERIALS & UTILITIES 6,486,649.27 4,899,784.20

MAINTENANCE, REPAIRS & PARTS 1,095,908.41 1,386,020.40

EMPLOYEE BENEFITS 1,521,733.29 1,729,842.62

GENERAL & ADMINISTRATIVE EXPENSES 856,586.11 782,749.56

TOTAL EXPENSES 31,223,172.23 37,142,148.73

NET REVENUES OVER EXPENSES 12,740,859.18 19,152,719.40

LESS: CAPITAL IMPROVEMENTS 40,182,500.00 25,267,500.00

LESS: OTHER USES 5,823,421.89 9,120,152.16

ADD: OTHER SOURCES 34,079,000.00 15,333,616.56

NET CASH BASIS SOURCES (USES) 813,937.29 98,683.80

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FISCAL YEAR 2015 - 2016 BUDGET2015 - 2016 Budget

FUND 02 FUND 04 FUND 06 FUND 08 FUND 10 FUND 12 FUND 14 FUND 15

OPERATING REVENUES 15,285,731.23 3,581,928.55 14,439,832.95 12,234,270.17 25,000.00 312,166.00 325,000.00 -

OTHER REVENUES 26,181.44 269,511.97 17,840.35 54,985.46 - 813,635.39 1,935,818.48 619,040.34

TOTAL REVENUES 15,311,912.67 3,851,440.52 14,457,673.30 12,289,255.63 25,000.00 1,125,801.40 2,260,818.48 619,040.34

SALARIES & WAGES 292,401.57 10,405.16 1,693,207.64 1,790,287.74 - 34,397.72 - -

PROFESSIONAL FEES 24,952.00 5,464.00 118,108.00 864,372.00 - 440.00 - -

PURCHASED & CONTRACTED SERVICES 7,832,055.16 2,691,954.12 5,027,882.44 5,271,348.82 - - - -

SUPPLIES, MATERIALS & UTILITIES 783,835.66 1,864.51 2,854,007.37 1,030,015.56 - 2,138.47 - -

MAINTENANCE, REPAIRS & PARTS 268,509.91 58.86 456,901.41 454,484.05 - 3,555.82 - -

EMPLOYEE BENEFITS 94,446.77 - 623,992.18 688,386.73 - 11,978.76 - -

GENERAL & ADMINISTRATIVE EXPENSES 77,335.62 9,079.89 256,506.91 281,241.77 - 8,610.24 - -

TOTAL EXPENSES 9,373,536.69 2,718,826.55 11,030,605.96 10,380,136.67 - 61,121.00 - -

NET REVENUES OVER EXPENSES 5,938,375.98 1,132,613.97 3,427,067.34 1,909,118.96 25,000.00 1,064,680.39 2,260,818.48 619,040.34

LESS: NON-OPERATING EXPENSES - - - - - - - -

LESS: CAPITAL IMPROVEMENTS 15,251,386.00 863,102.00 5,434,631.50 1,854,133.50 25,000.00 251,045.00 325,000.00 -

LESS: OTHER USES 2,724,031.54 274,512.50 574,595.49 - - 815,302.08 1,945,600.00 620,966.67

ADD: OTHER SOURCES 12,063,223.00 - 2,600,000.00 - - - - -

NET CASH BASIS SOURCES (USES) 26,181.44 (5,000.53) 17,840.35 54,985.46 - (1,666.69) (9,781.52) (1,926.33)

15


FISCAL YEAR 2015 - 2016 BUDGET2015 - 2016 Budget

OPERATING REVENUES

OTHER REVENUES

TOTAL REVENUES

SALARIES & WAGES

PROFESSIONAL FEES

PURCHASED & CONTRACTED SERVICES

SUPPLIES, MATERIALS & UTILITIES

MAINTENANCE, REPAIRS & PARTS

EMPLOYEE BENEFITS

GENERAL & ADMINISTRATIVE EXPENSES

TOTAL EXPENSES

NET REVENUES OVER EXPENSES

LESS: NON-OPERATING EXPENSES

LESS: CAPITAL IMPROVEMENTS

LESS: OTHER USES

ADD: OTHER SOURCES

NET CASH BASIS SOURCES (USES)

FUND 16 FUND 19 FUND 21 FUND 22 FUND 23 FUND 24 TOTAL

- - 2,935,085.23 1,056,992.51 140,000.00 40,000.00 50,376,006.64

248,101.66 863,444.30 1,070,302.09 - - - 5,918,861.48

248,101.66 863,444.30 4,005,387.32 1,056,992.51 140,000.00 40,000.00 56,294,868.13

- - 867,013.69 6,548.08 - - 4,694,261.60

- - 107,372.00 292.00 - - 1,121,000.00

- - 664,063.18 1,041,186.62 - - 22,528,490.35

- - 226,749.27 1,173.36 - - 4,899,784.20

- - 202,473.31 37.04 - - 1,386,020.40

- - 311,038.18 - - - 1,729,842.62

- - 144,260.67 5,714.46 - - 782,749.56

- - 2,522,970.29 1,054,951.56 - - 37,142,148.73

248,101.66 863,444.30 1,482,417.03 2,040.95 140,000.00 40,000.00 19,152,719.40

- - - - - - -

- - 1,082,508.50 693.50 140,000.00 40,000.00 25,267,500.00

248,150.00 862,827.81 1,052,818.62 1,347.45 - - 9,120,152.16

- - 670,393.56 - - - 15,333,616.56

(48.34) 616.48 17,483.47 (0.00) - - 98,683.80

16

CANAL OPERATIONS (08)



SUMMARY BUDGET


Ending Actual Final

Balance YTD Annualized FY 2015 FY 2016

8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES 8,849,733.81 4,975,024.65 9,950,049.30 9,622,896.04 12,234,270.17

OTHER REVENUES 191,243.77 30,367.60 60,735.20 68,730.47 54,985.46

TOTAL REVENUES 9,040,977.58 5,005,392.25 10,010,784.50 9,691,626.51 12,289,255.63

SALARIES & WAGES 1,360,886.87 758,001.28 1,516,002.56 1,488,249.53 1,790,287.74

PROFESSIONAL FEES 921,666.06 165,249.56 330,499.12 761,658.90 864,372.00

PURCHASED & CONTRACTED SERVICES 4,922,710.47 2,548,879.46 4,239,495.92 3,224,474.09 5,271,348.82

SUPPLIES, MATERIALS & UTILITIES 921,111.13 433,181.54 788,745.67 1,110,953.92 1,030,015.56

MAINTENANCE, REPAIRS & PARTS 336,398.92 157,403.28 314,806.56 444,827.29 454,484.05

EMPLOYEE BENEFITS 542,546.25 302,172.17 604,344.34 615,495.12 688,386.73

GENERAL & ADMINISTRATIVE EXPENSES 210,944.11 113,390.40 226,780.80 298,380.29 281,241.77

MISCELLANEOUS EXPENSES 6,491.81 - - - -

TOTAL EXPENSES 9,222,755.62 4,478,277.69 8,020,674.97 7,944,039.14 10,380,136.67

NET REVENUES OVER EXPENSES (181,778.04) 527,114.56 1,990,109.53 1,747,587.37 1,909,118.96

LESS: NON-OPERATING EXPENSES 1,413,849.45 787,304.52 1,574,609.04 - -

LESS: CAPITAL IMPROVEMENTS 2,584,318.32 299,851.64 1,105,991.56 1,678,856.90 1,854,133.50

LESS: OTHER USES - - - - -

ADD: OTHER SOURCES 1,454,636.04 - - - -

NET CASH BASIS SOURCES (USES) (2,725,309.77) (560,041.60) (690,491.07) 68,730.47 54,985.46

17




Ending Actual Final


Description 8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERTATING REVENUES

METERED WATER SALES 8,539,671.65 4,972,354.89 9,944,709.78 9,379,793.37 11,979,823.00

IRRIGATION INCOME 310,062.16 2,669.76 5,339.52 243,102.67 254,447.17

TOTAL OPERATING REVENUES 8,849,733.81 4,975,024.65 9,950,049.30 9,622,896.04 12,234,270.17

OTHER REVENUES

OTHER INCOME 179,119.28 28,670.02 57,340.04 60,000.00 40,000.00

INTEREST INCOME-GENERAL FUND 11,996.28 1,609.66 3,219.32 8,730.47 14,985.46

INTEREST INCOME-GENERAL SWEEP 128.21 87.92 175.84 - -

TOTAL OTHER REVENUES 191,243.77 30,367.60 60,735.20 68,730.47 54,985.46

SALARIES & WAGES

OPERATIONS 220,763.58 102,049.38 204,098.76 244,166.31 215,689.51

MAINTENANCE 553,916.20 292,227.40 584,454.80 638,773.45 724,792.27

ADMIN-OFFICE 237,822.79 125,597.53 251,195.06 283,051.00 299,387.82

PAYROLL TAXES 91,891.96 53,701.27 107,402.54 21,653.40 127,224.35

OFFICE MANAGEMENT 256,492.34 184,425.70 368,851.40 300,605.37 423,193.79

TOTAL SALARIES & WAGES 1,360,886.87 758,001.28 1,516,002.56 1,488,249.53 1,790,287.74


CONTRACT WATER COST 4,711,997.00 2,396,126.58 3,933,990.16 2,955,974.09 4,917,736.82

SERVICE AGREEMENTS 8,013.60 3,696.20 7,392.40 8,500.00 8,500.00

CONTRACT SERVICE OPERATIONS 202,699.87 149,056.68 298,113.36 260,000.00 345,112.00

TOTAL PURCHASED & CONTRACTED SERVICES 4,922,710.47 2,548,879.46 4,239,495.92 3,224,474.09 5,271,348.82


POWER - ELECTRIC 578,313.41 267,082.00 534,164.00 728,982.93 578,313.41

MISCELLANEOUS CHEMICALS 97,215.90 2,306.30 4,612.60 100,000.00 100,000.00

SUPPLIES OPERATIONS 6,208.40 1,002.53 2,005.06 5,000.00 5,000.00

RIGHT OF WAY EASEMENT 17,045.88 4,538.75 9,077.50 60,000.00 60,000.00

DATA PROCESSING 17,914.55 11,948.38 23,896.76 27,594.67 42,950.46

RECORDS MANAGEMENT 5,148.35 4,051.55 8,103.10 31,592.09 7,293.79

MANAGEMEMT EXPENSE 7,851.38 5,564.27 11,128.54 7,000.00 7,000.00

CONTRIBUTIONS/DONATIONS 361.80 - - - -

INSURANCE EXPENSE 41,273.44 23,685.60 47,371.20 47,696.36 50,457.90

JANITORIAL SERVICES & SUPPLIES 1,942.51 1,977.83 3,955.66 1,500.00 2,000.00

STATIONERY & OFFICE SUPPLIES 8,133.74 4,341.70 8,683.40 3,000.00 5,000.00

TELEPHONE 14,952.01 3,608.80 7,217.60 10,044.00 14,000.00

18




Ending Actual Final



DUES/SUBSCRIPTIONS 153.00 7.50 15.00 - -

TCEQ PERMITS 43,168.00 43,168.00 43,168.00 43,168.00 113,000.00

TRAINING 52,157.65 41,329.75 60,000.00 20,000.00 20,000.00

SAFETY EQUIPMENT 24,549.41 16,082.89 20,375.87 20,375.87 20,000.00

HEAT, LIGHT & WATER 4,721.70 2,485.69 4,971.38 5,000.00 5,000.00

TOTAL SUPPLIES, MATERIALS & UTILITIES 921,111.13 433,181.54 788,745.67 1,110,953.92 1,030,015.56


SHOP SUPPLIES 10,714.86 5,518.23 11,036.46 11,000.00 10,000.00

RESERVOIRS & CANALS 41,721.81 26,630.64 53,261.28 50,000.00 50,000.00 FEE TO BRA OVER 180,500 ACRE FEET UNDER

CONTRACT - - - 76,908.40 76,908.40

BUILDINGS - MAINT 13,506.23 5,576.19 11,152.38 15,000.00 15,000.00

VEHICLES - REPAIRS & MAINT 39,938.36 19,554.04 39,108.08 42,000.00 40,000.00

EQUIPMENT - HEAVY 51,439.96 25,321.65 50,643.30 33,000.00 40,000.00

EQUIPMENT - LIGHT 5,314.39 1,653.70 3,307.40 5,000.00 5,000.00

EQUIPMENT GROUNDS - MAINT 59.00 - - - -

GROUNDS - MAINTENANCE 4,958.72 1,719.24 3,438.48 5,000.00 5,000.00

MECHANICAL 7,186.11 5,868.98 11,737.96 7,000.00 7,000.00

ELECTRICAL 11,379.90 3,704.19 7,408.38 8,000.00 8,000.00

PIPING (DISTRIBUTION) 5,027.68 690.00 1,380.00 6,000.00 6,000.00

INSTRUMENTS 9,679.47 2,202.80 4,405.60 15,000.00 15,000.00

PAINT & INSULATION 444.18 217.56 435.12 1,000.00 1,000.00

ROAD REPAIRS 1,149.87 - - - -

MAINT - OFFICE BLDG & GROUNDS 407.83 79.00 158.00 1,500.00 1,500.00

RADIO/COMMUNICATIONS 9,557.76 6,596.38 13,192.76 14,418.89 22,575.65

MAINT - TOOLS 16,940.96 9,369.92 18,739.84 17,000.00 17,000.00

OFFICE EQUIPMENT 1,055.85 572.95 1,145.90 5,000.00 2,500.00

GASOLINE & OIL EXPENSE 105,915.98 42,127.81 84,255.62 132,000.00 132,000.00

TOTAL MAINTENANCE, REPAIRS & PARTS 336,398.92 157,403.28 314,806.56 444,827.29 454,484.05

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS - HEALTH INS 273,898.16 155,938.12 311,876.24 318,504.35 453,019.04

EMPLOYEE BENEFITS DENTAL 17,692.11 9,446.87 18,893.74 20,573.39 14,645.42

EMPLOYEE BENEFITS VISION 4,882.03 2,583.55 5,167.10 5,677.10 5,033.35

EMPLOYEE BENEFITS - LIFE INS 17,879.62 8,230.93 16,461.86 10,770.26 8,642.80

EMPLOYEE BENEFITS - TC&DRS 166,227.45 88,895.96 177,791.92 177,862.52 118,230.67

19




Ending Actual Final



EMPLOYEE BENEFITS-401(K) 37,309.43 19,687.72 39,375.44 47,341.81 54,547.02

WORKERS COMPENSATION INSURANCE 24,657.45 17,389.02 34,778.04 34,765.69 34,268.43

TOTAL EMPLOYEE BENEFITS 542,546.25 302,172.17 604,344.34 615,495.12 688,386.73


ADMIN -GASOLINE & OIL EXPENSE 280.52 109.51 219.02 1,766.50 1,796.50

ADMIN-DATA PROCESSING 11,467.14 9,989.45 19,978.90 60,995.48 36,124.02

ADMIN-DIRECTOR'S EXPENSE 17,824.19 5,067.34 10,134.68 23,741.76 36,648.60

ADMIN-MANAGEMENT EXPENSE 13,387.16 7,921.54 15,843.08 15,191.90 15,449.90

ADMIN-EMPL BENEFIT HEALTH INS 37,121.70 21,106.34 42,212.68 45,508.38 54,525.63


EMPLOYEE BENEFITS VISION 647.10 353.70 707.40 793.30 723.93

ADMIN-EMPL BENEFIT LIFE INS 3,739.71 1,679.40 3,358.80 2,575.76 1,617.04

ADMIN-EMPL BENEFIT TC & DRS 40,106.61 20,643.29 41,286.58 42,536.75 25,956.92

ADMIN - 401 (K) 9,503.15 5,023.43 10,046.86 11,322.04 11,975.51

ADMIN-WORKERS COMP INSURANCE 670.74 475.86 951.72 951.39 944.33

ADMIN-CONSULTANTS 30,881.82 21,007.03 42,014.06 45,434.38 46,205.98

ADMIN-LEGAL EXPENSE 9,854.83 2,937.89 5,875.78 9,892.40 10,060.40

ADMIN-MAINT OFFICE BLDG & GRND 1,523.08 634.42 1,268.84 2,826.40 2,874.40

ADMIN-CONTRACT SERVICES 4,756.74 222.75 445.50 1,059.90 1,087.81

ADMIN-JANITORIAL SERVICE & SUP 1,373.03 653.98 1,307.96 1,823.03 1,853.99

ADMIN-STATIONARY & OFFICE SUPP 9,014.13 2,975.42 5,950.84 9,362.45 9,521.45

ADMIN-TELEPHONE 2,190.37 888.19 1,776.38 2,119.80 2,155.80

ADMIN-TRAINING 5,605.40 784.19 1,568.38 7,066.00 7,186.00

ADMIN-DUES/SUBSCRIPTIONS 1,843.30 3,619.66 7,239.32 2,473.10 2,515.10

ADMIN-SAFETY EQUIPMENT 877.38 2,237.16 4,474.32 706.60 718.60

ADMIN-HEAT,LIGHT,WATER 133.85 58.14 116.28 176.65 179.65

ADMIN-VEHICLE REPAIRS & MAINT 617.58 1,240.11 2,480.22 1,059.90 1,077.90

ADMIN-SERVICE AGREEMENTS 4,941.25 2,264.43 4,528.86 5,829.45 7,904.60

TOTAL GENERAL & ADMINISTRATIVE EXPENSES 210,944.11 113,390.40 226,780.80 298,380.29 281,241.77

PROFESSIONAL FEES

ENGINEERING 445,551.85 143,202.77 286,405.54 250,000.00 350,000.00

LEGAL EXPENSE 462,308.82 11,751.66 23,503.32 500,000.00 500,000.00

AUDITING EXPENSE (OUTSIDE) 13,805.39 10,295.13 20,590.26 11,658.90 14,372.00

TOTAL PROFESSIONAL FEES 921,666.06 165,249.56 330,499.12 761,658.90 864,372.00

20




Ending Actual Final



MISCELLANEOUS EXPENSES

BAD DEBT EXPENSE 6,491.81 - - - -

TOTAL MISCELLANEOUS EXPENSES 6,491.81 - - - -

NON-OPERATING EXPENSES

DEPRECIATION 1,413,849.45 787,304.52 1,574,609.04 - -

TOTAL NON-OPERATING EXPENSES 1,413,849.45 787,304.52 1,574,609.04 - -

CAPITAL IMPROVEMENTS

CAPITAL 2,502,278.09 291,697.56 1,089,683.40 1,646,000.00 1,820,000.00

ADMIN-CAPITAL 82,040.23 8,154.08 16,308.16 32,856.90 34,133.50

TOTAL CAPITAL IMPROVEMENTS 2,584,318.32 299,851.64 1,105,991.56 1,678,856.90 1,854,133.50

TOTAL EXPENSES 13,220,923.39 5,565,433.85 10,701,275.57 9,622,896.04 12,234,270.17

OTHER SOURCES

CASH USED 1,454,636.04 - - - -

TOTAL OTHER SOURCES 1,454,636.04 - - - -

NET CASH BASIS SOURCES (USES) (2,725,309.77) (560,041.60) (690,491.07) 68,730.47 54,985.46

21

FY2016 Budget Notes –Canal Operations June 26, 2015

1. Operating Revenues – Operating Revenues for FY2016 for Canal Operations are

projected to total $12,234,270.17, based on fees collected for the following: Firm Contract Customers- All Firm Contract customers pay $192.47 per MG with

the exception of Pecan Grove MUD, which pays $365.33 per MG. Based on projected water use, the estimated revenue is $11,387,245.83.

Option Water Agreement Customers- All Option Water Contract Customers pay $38.49 per MG. Based on projected water use, the estimated revenue is $372,331.67.

Interruptible Water Agreement Customers- All Interruptible Water Contract Customers pay varying rates based on availability. Based on projected water use, the estimated revenue is $474,692.67.

2. Salaries & Wages – Staffing for FY2016 includes 25.8241 Full Time Employees (FTE’s) as follows:

Canal Operations Staff- Utilizes 22.77 FTE’s for a total cost of $1,467,996.76. General & Administration Staff- Utilizes 3.0541 FTE’s, allocated by time, to

support the management and implementation of the Canal Operations for a total cost of $322,290.98.

3. Professional Fees- Include expenses such as attorneys, auditors, engineers, etc., for a total of $864,372.00. Legal Fee and Auditing are projected to be $500,000.00 and $14,372.00, respectively. Engineering fees are projected to be $350,000.00 for non-capital related engineering and other professional services to support the Canal Operations.

4. Purchased & Contracted Services – Services purchased and contracted from third party providers totaling $5,271,348.82. Included in the total is $4,917,736.82 for expenses related to contract water cost purchases from the Brazos River Authority. Contract water cost purchases includes the additional 30,000 acre feet of interruptible water at a cost of $2,115,000.00 for FY2015. Additionally, $345,112.00 for expenses related to contract mowing, clearing and mechanical services.

5. Supplies, Materials & Utilities – Includes expenses for supplies for: office, employees, facilities, and equipment, in addition to electric, water, gas, telephone and other utilities, totaling $1,030,015.56. The single largest expense is power costs in the amount of $578,313.41. Additionally, $113,000.00 for various permits and $100,000.00 for miscellaneous chemicals-herbicide.

6. Maintenance, Repairs & Parts – Includes expenses for routine maintenance, building and grounds maintenance, and security monitoring, totaling $454,484.05. Also included in the total is $50,000.00 for reservoirs and canals, $132,000.00 for gasoline and oil expense and $76,908.40 for Payment to BRA for per 1988 Canal Purchase Agreement.

22

7. Employee Benefits – Includes expenses for group health insurance, TCDRS retirement, 401(k) retirement savings, and Worker’s compensation insurance for the staff previously noted, totaling $688,386.73.

8. General & Administration Expenses – Includes $281,241.77 for expenses incurred by General & Administration (G&A) to support the work performed by the G&A staff to support the Canal Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, rentals, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted.

9. Capital Improvements – Costs totaling $1,854,133.50. Major projects include: Brooks Lane Diversion Weir ($500,000.00), Lateral 10 Land Purchase ($200,000.00), Pump Set at Briscoe Pump Station ($225,000.00) and SCADA Improvements ($200,000.00).

23

INDUSTRIAL DIVISION

(02)



SUMMARY BUDGET

INDUSTRIAL DIVISION (02)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 721,121.51 5,645.50 11,291.00 619,984.16 26,181.44

TOTAL REVENUES 10,244,396.93 4,857,268.20 9,714,536.40 10,314,835.89 15,311,912.67

SALARIES & WAGES 308,602.76 150,583.09 301,166.18 342,636.38 292,401.57



SUPPLIES, MATERIALS & UTILITIES 1,082,175.33 524,758.55 1,049,517.10 1,213,170.44 783,835.66




TOTAL EXPENSES 6,490,404.40 3,687,111.69 7,374,223.38 7,662,185.13 9,373,536.69

NET REVENUES OVER EXPENSES 3,753,992.53 1,170,156.51 2,340,313.02 2,652,650.76 5,938,375.98

LESS: NON-OPERATING EXPENSES 460,940.23 546,908.04 1,093,816.08 - -

LESS: CAPITAL IMPROVEMENTS 4,291,273.34 2,464,086.64 3,380,742.90 30,857,666.60 15,251,386.00

LESS: OTHER USES - - - - 2,724,031.54

ADD: OTHER SOURCES 8,507,423.04 2,312,500.02 4,625,000.04 28,825,000.00 12,063,223.00

NET CASH BASIS SOURCES (USES) 7,509,202.00 471,661.85 2,490,754.08 619,984.16 26,181.44

24




Ending Actual Final



OPERTATING REVENUES



OTHER REVENUES

OTHER INCOME 697,866.33 1,112.47 2,224.94 602,000.00 2,000.00




SALARIES & WAGES

OPERATIONS 96,411.33 47,263.23 94,526.46 99,560.00 105,245.56

MAINTENANCE 27,442.55 10,137.10 20,274.20 44,317.40 49,699.24

ADMIN-OFFICE 87,748.83 48,488.32 96,976.64 109,118.44 82,325.40

PAYROLL TAXES 20,946.68 10,739.95 21,479.90 24,348.99 20,779.12


TOTAL SALARIES & WAGES 308,602.76 150,583.09 301,166.18 342,636.38 292,401.57







POWER - ELECTRIC 1,024,422.06 492,428.72 984,857.44 1,159,589.79 734,682.06

MISCELLANEOUS CHEMICALS 14,895.00 - - 5,000.00 5,000.00

SUPPLIES OPERATIONS 1,267.09 291.79 583.58 700.00 700.00

RIGHT OF WAY EASEMENT 1,873.40 - - - 1,873.40

DATA PROCESSING 12,019.56 9,420.65 18,841.30 9,364.32 14,349.69


MANAGEMEMT EXPENSE 491.07 236.59 473.18 750.00 750.00



JANITORIAL - SUPPLIES 136.40 - - 100.00 100.00

STATIONERY & OFFICE SUPPLIES 653.57 69.05 138.10 1,000.00 500.00

TELEPHONE 999.19 198.73 397.46 1,100.00 1,100.00

DUES/SUBSCRIPTIONS - 250.00 500.00 - 400.00

TRAINING 6,351.39 7,924.30 15,848.60 2,000.00 5,000.00


TOTAL SUPPLIES, MATERIALS & UTILITIES 1,082,175.33 524,758.55 1,049,517.10 1,213,170.44 783,835.66

25




Ending Actual Final




SHOP SUPPLIES 326.44 90.21 180.42 100.00 100.00

RESERVOIRS & CANALS 13,121.00 16,678.88 33,357.76 22,000.00 22,000.00

BUILDING - PUMP STATION 3,236.73 2,806.44 5,612.88 3,000.00 3,000.00


EQUIPMENT - HEAVY - - - - -

EQUIPMENT - LIGHT 118.31 143.00 286.00 1,000.00 1,000.00

GROUNDS - MAINTENANCE 35.99 59.98 119.96 5,000.00 1,000.00

MECHANICAL 3,385.39 1,335.87 2,671.74 5,000.00 5,000.00

ELECTRICAL 7,925.66 2,774.65 5,549.30 11,000.00 10,000.00

PIPING (PUMP STATION) 598.13 - - 1,000.00 1,000.00

PIPING (DISTRIBUTION) 75.19 1,788.22 3,576.44 6,000.00 6,000.00

INSTRUMENTS 10,418.68 259.17 518.34 10,000.00 10,000.00

PAINT & INSULATION 27.29 - - - 250.00


MAINTENANCE - TOOLS 3,078.40 1,044.07 2,088.14 3,000.00 3,000.00

RENTAL - EQUIPMENT - - - - 192,000.00

OFFICE EQUIPMENT - - - 1,000.00 1,000.00



EMPLOYEE BENEFITS










ADMIN -GASOLINE & OIL EXPENSE 95.31 42.23 84.46 681.00 494.00





ADMIN EMPLOYEE BENEFITS DENTAL 947.65 536.43 1,072.86 1,220.35 587.82


26




Ending Actual Final



ADMIN-EMPL BENEFIT LIFE INS 1,377.79 648.33 1,296.66 992.98 444.65


ADMIN - 401 (K) 3,506.28 1,939.37 3,878.74 16,398.26 3,293.02

ADMIN-INSURANCE EXPENSE - 41.54 83.08 - -




ADMIN-MAINT OFFICE BLDG & GRND 556.82 244.58 489.16 1,089.60 790.40

ADMIN-CONTRACT SERVICES 1,744.69 85.86 171.72 408.60 299.13

ADMIN-JANITORIAL SERVICE & SUP 503.60 252.12 504.24 702.79 509.81


ADMIN-TELEPHONE 803.38 341.04 682.08 817.20 592.80

ADMIN-TRAINING 2,069.38 300.96 601.92 2,724.00 1,976.00

ADMIN-DUES/SUBSCRIPTIONS 676.09 1,262.59 2,525.18 953.40 691.60

ADMIN-SAFETY EQUIPMENT 372.59 854.39 1,708.78 272.40 197.60


ADMIN-VEHICLE REPAIRS & MAINT 227.04 610.41 1,220.82 408.60 296.40

ADMIN-SERVICE AGREEMENTS 1,812.42 867.32 1,734.64 2,247.30 2,173.60


PROFESSIONAL FEES

ENGINEERING 15,883.92 - - 16,000.00 16,000.00

LEGAL EXPENSE 33,013.17 2,609.14 5,218.28 5,000.00 5,000.00




DEPRECIATION 460,940.23 546,908.04 1,093,816.08 - -

TOTAL NON-OPERATING EXPENSES 460,940.23 546,908.04 1,093,816.08 - -


CAPITAL 4,261,054.76 2,461,206.81 3,373,318.43 30,845,000.00 15,242,000.00

ADMIN-CAPITAL 30,218.58 2,879.83 7,424.47 12,666.60 9,386.00

TOTAL CAPITAL IMPROVEMENTS 4,291,273.34 2,464,086.64 3,380,742.90 30,857,666.60 15,251,386.00

OTHER USES

PROPOSED BOND PAYMENT - - - - 2,724,031.54

TOTAL OTHER USES - - - - 2,724,031.54

TOTAL EXPENSES 11,242,617.97 6,698,106.37 11,848,782.36 38,519,851.73 27,348,954.23

27




Ending Actual Final



OTHER SOURCES

BOND PROCEEDS USED - - - 24,200,000.00 11,165,000.00

BOND FUNDS COLLECTED FY2014 - - - - 98,223.00

CASH USED 8,507,423.04 2,312,500.02 4,625,000.04 4,625,000.00 800,000.00

TOTAL OTHER SOURCES 8,507,423.04 2,312,500.02 4,625,000.04 28,825,000.00 12,063,223.00

NET CASH BASIS SOURCES (USES) 7,509,202.00 471,661.85 2,490,754.08 619,984.16 26,181.44

28

FY2016 Budget Notes –Industrial Operations June 26, 2015

1. Operating Revenues - Operating Revenues for Industrial totals $15,285,731.23 and are

based on fees collected from Industrial participants for the following:

GBR is contracted for 28.600 MGD with a revenue total of $4,946,556.50; Union Carbide is contracted for 8.542 MGD with a revenue total of

$2,148,913.93; Eastman Chemical is contracted for 8.542 MGD with a revenue total of

$1,385,040.20; Valero is contracted for 6.510 MGD with a revenue total of $1,069,542.88; Marathon Petroleum is contracted for 4.000 NGD with a revenue total of

$706,497.90; Texas City is contracted for 0.019 MGD with a revenue total of $3,013.10; Water Treatment Plant is contracted for 49.700 MGD with a revenue total of

$4,927,550.40; Ashland is contracted for 1.000 MGD with a revenue total of $98,616.28.

2. Salaries & Wages – Staffing for FY2016 includes 3.8898 Full Time Equivalents (FTEs)

as follows: Industrial Operations Staff – utilize 3.05 FTEs (Operations, Maintenance & Office

Management) at a total cost of $203,778.28. General & Administration staff – by allocated time, utilizes 0.8645 FTEs to

support the management and implementation of the Industrial Operations for a total cost of $88,623.29.

3. Professional Fees – Professional Fees for FY2016 total $24,952.00, including the following highlighted expenses:

Legal Services & Auditing - $5,000.00 & $3,952.00 respectively Engineering - $16,000.00 for non-capital related engineering and other

professional services to support the Industrial Operations.

4. Purchased & Contracted Services – Services purchased and contracted from third party providers totaling $7,832,055.16. Included in the total is $7,781,171.16 for expenses related to contract water cost purchases from the Canal A & B System. Additionally, $45,884.00 for expenses related to contract mowing and mechanical services.

5. Supplies, Materials & Utilities – Includes expenses for supplies for: office, employees, facilities, and equipment, in addition to electric, water, gas, telephone and other utilities, totaling $783,835.66. Included in the total is $734,682.06 for expenses for electricity. Additionally, $14,349.69 for expenses for data processing.

6. Maintenance, Repairs & Parts – Includes expenses for routine maintenance, building

and grounds maintenance, and security monitoring, totaling $268,509.91. Included in the

29

total is $192,000.00 for Rental Equipment related annual generator rental expenses and $22,000.00 for expenses related to Reservoirs and Canals.

7. Employee Benefits – Includes $94,446.77 for group health insurance, TCDRS

retirement, 401(k) retirement savings, and Worker’s Compensation expenses for the staff previously identified.

8. General & Administration Expenses – Includes $77,335.62 for expenses incurred by General & Administration (G&A) to support the work performed by the staff within G&A noted above who support the Industrial Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted.

9. Capital Improvements – Costs totaling $15,251,386.00. Major projects include: Drainage Improvements East Levee ($600,000.00), Reservoir Intake & Discharge Pipe and Gate Improvements ($3,220,000.00), Industrial Pump Station ($7,945,000.00-anticipated capital expenditure for year 1

of this project), Rehabilitate Pipes, Gates and Meters from Main Canal to By-Pass Canal

($180,000.00), Canal Levee Improvements ($200,000.00) and Meter Installation ($125,000.00)

10. Bond Principal – Payment of $2,724,031.51 for the Reservoir Intake & Discharge Pipe

and Gate Improvements ($9,200,000.00) and Industrial Pump Station ($22,700,000.00).

11. Cash Used-Utilized $800,000.00 from FY2015 carryforward of cash funds.

30

WATER TREATMENT PLANT OPERATIONS

(06)



SUMMARY BUDGET

WATER TREATMENT PLANT (06)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 17,660.65 4,504.37 9,008.74 120,905.92 17,840.35

TOTAL REVENUES 9,993,192.54 5,241,718.34 10,483,436.68 10,595,333.77 14,457,673.30

SALARIES & WAGES 1,426,219.08 672,074.37 1,344,148.74 1,543,903.77 1,693,207.64



SUPPLIES, MATERIALS & UTILITIES 2,524,517.66 1,139,362.13 2,273,143.48 3,679,646.82 2,854,007.37




TOTAL EXPENSES 7,605,842.88 3,957,092.47 7,908,604.16 9,893,217.05 11,030,605.96

NET REVENUES OVER EXPENSES 2,387,349.66 1,284,625.87 2,574,832.52 702,116.72 3,427,067.34

LESS: NON-OPERATING EXPENSES 1,417,484.50 1,075,952.10 2,151,904.20 - -

LESS: CAPITAL IMPROVEMENTS 3,054,579.95 679,812.69 1,533,031.64 3,585,210.80 5,434,631.50

LESS: OTHER USES - - - - 574,595.49

ADD: OTHER SOURCES 1,942,667.04 1,501,999.98 3,003,999.96 3,004,000.00 2,600,000.00

NET CASH BASIS SOURCES (USES) (142,047.75) 1,030,861.06 1,893,896.64 120,905.92 17,840.35

31



WATER TREATMENT PLANT OPERATIONS (06)

Ending Actual Final



OPERTATING REVENUES



OTHER REVENUES

OTHER INCOME 3,065.35 1,238.89 2,477.78 111,000.00 1,000.00




SALARIES & WAGES

OPERATIONS 604,667.85 297,077.91 594,155.82 646,479.09 596,336.03

MAINTENANCE 267,035.31 109,088.74 218,177.48 379,329.74 378,315.43

ADMIN-OFFICE 221,006.45 119,380.91 238,761.82 268,870.41 273,057.02

PAYROLL TAXES 98,069.66 47,009.75 94,019.50 109,715.41 120,325.49


TOTAL SALARIES & WAGES 1,426,219.08 672,074.37 1,344,148.74 1,543,903.77 1,693,207.64







POWER - ELECTRIC 820,183.18 514,856.91 1,029,713.82 1,150,566.34 820,183.18

PHOSPHATE 104,068.16 36,392.32 72,784.64 130,000.00 130,000.00

CHLORINE 103,905.30 41,585.00 83,170.00 130,000.00 130,000.00

CATIONIC POLYMER 331,509.86 124,684.36 249,368.72 360,000.00 356,000.00

POWDERED ACTIVATED CARBON 79,040.00 37,200.00 74,400.00 180,000.00 180,000.00

GRANULAR ACTIVIATED CARBON 135,078.00 - - 160,000.00 160,000.00

FLUORIDE 43,874.59 15,560.27 31,120.54 60,000.00 60,000.00

AMMONIA 73,481.49 32,796.40 65,592.80 80,000.00 80,000.00


COPPER SULFATE 159,000.00 45,725.00 91,450.00 200,000.00 190,000.00

FERRIC SULFATE 152,956.65 51,822.65 103,645.30 150,000.00 160,000.00

SODIUM CHLORITE 182,644.48 68,617.25 137,234.50 190,000.00 190,000.00

SUPPLIES OPERATIONS 5,053.22 8,837.58 17,675.16 3,000.00 6,000.00

LAB SUPPLIES 72,378.79 41,671.53 83,343.06 80,000.00 92,000.00

LABORATORY GASES 3,504.97 3,194.01 6,388.02 4,000.00 6,500.00

32




Ending Actual Final



RIGHT OF WAY EASEMENTS 754.65 - - - 754.65

SEDIMENT 53,409.65 42,381.21 84,762.42 600,000.00 85,000.00

PUBLIC COMMUNICATIONS - - - - -

DATA PROCESSING 14,459.84 9,569.16 19,138.32 31,964.32 45,797.04


MANAGEMEMT EXPENSE 10,610.65 6,290.77 12,581.54 7,000.00 8,000.00

CONTRIBUTIONS/DONATIONS 27,831.30 - - 28,000.00 28,000.00


JANITORIAL - SUPPLIES 5,207.99 2,211.95 4,423.90 5,500.00 6,000.00

STATIONERY & OFFICE SUPPLIES 7,652.35 874.95 1,749.90 8,600.00 8,000.00

TELEPHONE 5,941.46 2,631.90 5,263.80 5,500.00 6,000.00

DUES/SUBSCRIPTIONS 2,109.00 196.00 392.00 1,500.00 2,500.00

TNRCC ASSESSMENT 100.00 100.00 200.00 200.00 100.00

TRAINING 55,989.26 13,790.39 22,000.00 22,000.00 25,000.00


HEAT, LIGHT & WATER 1,261.85 206.70 413.40 1,500.00 1,500.00

TOTAL SUPPLIES, MATERIALS & UTILITIES 2,524,517.66 1,139,362.13 2,273,143.48 3,679,646.82 2,854,007.37


SHOP SUPPLIES 3,575.67 2,619.18 5,238.36 5,000.00 5,000.00

RESERVOIRS & CANALS - - - - -

BUILDINGS - MAINTENANCE 30,798.99 7,554.35 15,108.70 30,000.00 30,000.00


EQUIPMENT - LIGHT - REPAIRS & 1,062.52 312.22 624.44 2,500.00 5,000.00

GROUNDS - MAINTENANCE 1,249.49 3,173.91 6,347.82 12,000.00 10,000.00

MECHANICAL 101,106.00 29,379.62 58,759.24 120,000.00 120,000.00

ELECTRICAL 35,989.91 13,399.59 26,799.18 50,000.00 50,000.00

PIPE - MAINTENANCE 1,000.00 1,458.45 2,916.90 3,000.00 3,000.00

PIPING (DISTRIBUTION) 9,090.97 17,967.77 35,935.54 10,000.00 9,000.00

INSTRUMENTS 52,731.26 20,423.57 40,847.14 53,000.00 53,000.00

PAINT & INSULATION 257.83 177.62 355.24 5,000.00 5,000.00

ROAD REPAIRS - - - 12,000.00 8,000.00


MAINT - TOOLS 12,832.78 5,638.25 11,276.50 17,000.00 17,000.00

RENTAL - EQUIPMENT - - - 96,000.00

OFFICE EQUIPMENT - - - 1,000.00 1,000.00



33




Ending Actual Final



EMPLOYEE BENEFITS



EMPLOYEE BENEFITS VISION 2,854.65 1,471.77 2,943.54 3,668.27 4,229.61







ADMIN -GASOLINE & OIL EXPENSE 260.74 104.06 208.12 1,678.00 1,638.50





ADMIN EMPLOYEE BENEFITS DENTAL 2,400.12 1,320.51 2,641.02 3,007.05 1,949.69


ADMIN-EMPL BENEFIT LIFE INS 3,474.97 1,595.76 3,191.52 2,446.72 1,474.82


ADMIN - 401 (K) 8,831.18 4,774.96 9,549.92 10,754.82 10,922.28





ADMIN-MAINT OFFICE BLDG & GRND 1,415.83 602.62 1,205.24 2,684.80 2,621.60

ADMIN-CONTRACT SERVICES 4,421.53 211.59 423.18 1,006.80 992.14

ADMIN-JANITORIAL SERVICE & SUP 1,276.30 621.22 1,242.44 1,731.71 1,690.94


ADMIN-TELEPHONE 2,436.53 842.18 1,684.36 2,013.60 1,966.20

ADMIN-TRAINING 5,211.83 743.41 1,486.82 6,712.00 6,554.00

ADMIN-DUES/SUBSCRIPTIONS 1,713.44 3,438.41 6,876.82 2,349.20 2,293.90

ADMIN-SAFETY EQUIPMENT 821.23 2,105.14 4,210.28 671.20 655.40


ADMIN-VEHICLE REPAIRS & MAINT 574.65 1,177.45 2,354.90 1,006.80 983.10

ADMIN-SERVICE AGREEMENTS 4,592.93 2,144.95 4,289.90 5,537.40 7,209.40


34




Ending Actual Final



PROFESSIONAL FEES

ENGINEERING 68,276.85 14,425.00 28,850.00 200,000.00 100,000.00

LEGAL EXPENSE 4,717.00 3,679.30 7,358.60 3,500.00 5,000.00




DEPRECIATION 1,417,484.50 1,075,952.10 2,151,904.20 - -

TOTAL NON-OPERATING EXPENSES 1,417,484.50 1,075,952.10 2,151,904.20 - -


CAPITAL 2,978,321.97 672,214.60 1,514,189.84 3,554,000.00 5,403,500.00

ADMIN-CAPITAL 76,257.98 7,598.09 18,841.80 31,210.80 31,131.50

TOTAL CAPITAL IMPROVEMENTS 3,054,579.95 679,812.69 1,533,031.64 3,585,210.80 5,434,631.50

OTHER USES

PROPOSED 5 YR NOTE @ 4.00% - - - - 574,595.49

TOTAL OTHER USES - - - - 574,595.49

TOTAL EXPENSES 12,077,907.33 5,712,857.26 11,593,540.00 13,478,427.85 17,039,832.95

OTHER SOURCES

NOTE PROCEEDS USED - - - - 2,600,000.00

CASH USED 1,942,667.04 1,501,999.98 3,003,999.96 3,004,000.00 -

TOTAL OTHER SOURCES 1,942,667.04 1,501,999.98 3,003,999.96 3,004,000.00 2,600,000.00

NET CASH BASIS SOURCES (USES) (142,047.75) 1,030,861.06 1,893,896.64 120,905.92 17,840.35

35

FY2016 Budget Notes – Thomas S. Mackey Water Treatment Plant June 26, 2015

1. Operating Revenues - Operating Revenues for the Water Treatment Plant (WTP) are

projected to be $14,439,832.95 based on fees collected from WTP participants for the following:

Mainland Customer Group – Based on water use, the estimated revenue is $6,793,925.61. Estimated revenue by customer is as follows:

o Texas City ($3,019,304.05) o La Marque ($848,210.58) o WCID #1 ($968,350.18) o Bacliff ($311,273.40) o Bayview ($89,529.98) o WCID #12 ($324,594.93) o San Leon ($399,768.52) o League City ($832,893.97)

South Project Customer Group – Based on water use, the estimated revenue is $7,645,907.34. Estimated revenue by customer is as follows:

o Galveston ($6,457,617.62) o Hitchcock ($390,204.27) o WCID #8 ($266,463.04) o MUD #12 ($136,474.61) o La Marque ($130,018.73) o FWSD #6 ($100,271.80) o Texas City ($50,322.60) o WCID #1 ($114,534.66)

2. Salaries & Wages – Staff salaries for FY2016 includes 21.3855 Full Time Equivalents

(FTEs) as follows: WTP Operations Staff – utilizes 18.60 FTEs for a total cost of $1,399,261.76,

which is a 2.0529 FTE increase from FY2015 due to the addition of (1) GIS and (2) Operator/Maintenance positions.

General & Administration staff – by allocated time, utilizes 2.7855 FTEs to support the management and implementation of the WTP Operations for a total cost of $293,945.88.

3. Professional Fees – Include expenses such as attorneys, auditors, engineers, etc., for a total of $118,108.00. Legal Fee and Auditing are projected to be $5,000.00 and $13,108.00, respectively. Engineering fees are projected to be $100,000.00 for non-capital related engineering and other professional services to support the WTP Operations.

4. Purchased & Contracted Services – Services purchased and contracted from third party providers totaling $5,027,882.44. Included in the total is $4,927,550.44 for expenses related to contract water cost purchases from the Texas City Industrial Operations. Additionally, $75,332.00 for expenses related to contract mowing and mechanical services.

36

5. Supplies, Materials & Utilities – Includes expenses for supplies for: office, employees, facilities, and equipment, in addition to electric, water, gas, telephone and other utilities, totaling $2,854,007.37. The single largest expense is power costs in the amount of $820,183.18. Other large expenses are associated with the various chemicals needed to treat the water for consumption, which range in cost from $60,000.00 to $356,000.00 annually.

6. Maintenance, Repairs & Parts – Includes expenses for routine maintenance, building and grounds maintenance, and security monitoring, totaling $456,901.41. Also included in the total is $96,000.00 for rental equipment related to annual generator rental expenses, $120,000.00 for mechanical repairs, and $53,000.00 for instruments.


8. General & Administration Expenses – Includes $256,506.91 for expenses incurred by General & Administration (G&A) to support the work performed by the G&A staff to support the WTP Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, rentals, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted.

9. Capital Improvements – Costs totaling $5,434,631.50. Major projects include: Powdered Activated Carbon (PAC) Feed System Replacement ($450,000.00), Low Lift Pump Station ($125,000.00), Piping Refurbishments ($150,000.00) and Additionally, the Authority is planning to issue $2,600,000.00 of bank debt with a

5 year term at 4.00% for two capital projects: Distribution Pump Station ($1,100,000.00) and Sludge Management Fields ($1,500,000.00).

10. Debt Service – Payment of $574,595.49 for anticipated debt issued for the Distribution Pump Station ($1,100,000.00) and Sludge Management Fields ($1,500,000.00). This debt service is anticipated to be repaid on a 5 year term at 4.00%.

37

1997 GALVESTON PROJECTS (12)



SUMMARY BUDGET


Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES 40,613.40 26,405.70 52,811.40 52,811.39 312,166.00

OTHER REVENUES 640,789.65 407,457.54 814,915.08 813,949.04 813,635.39

TOTAL REVENUES 681,403.05 433,863.24 867,726.48 866,760.43 1,125,801.40

SALARIES & WAGES 26,733.72 13,727.91 27,455.82 28,228.02 34,397.72

PROFESSIONAL FEES 352.51 291.88 583.76 320.10 440.00

PURCHASED & CONTRACTED SERVICES - 0.04 0.08 - -

SUPPLIES, MATERIALS & UTILITIES 1,531.26 850.59 1,701.18 2,522.27 2,138.47




TOTAL EXPENSES 45,646.64 23,984.72 47,969.44 51,909.29 61,121.00

NET REVENUES OVER EXPENSES 635,756.41 409,878.52 819,757.04 814,851.14 1,064,680.39

LESS: NON-OPERATING EXPENSES 840,320.94 447,462.78 894,925.56 - -

LESS: CAPITAL IMPROVEMENTS 41,522.89 205.22 410.44 902.10 251,045.00

LESS: OTHER USES 818,883.34 51,513.00 828,026.00 832,276.04 815,302.08

ADD: OTHER SOURCES - - - - -

NET CASH BASIS SOURCES (USES) (1,064,970.76) (89,302.48) (903,604.96) (18,327.00) (1,666.69)

38




Ending Ending Actual Final

Balance Balance YTD Annualized FY 2015 FY 2016

Description 8/31/2013 8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERTATING REVENUES

METERED WATER SALES 56,703.84 40,613.40 26,405.70 52,811.40 52,811.39 312,166.00

TOTAL OPERATING REVENUES 56,703.84 40,613.40 26,405.70 52,811.40 52,811.39 312,166.00

OTHER REVENUES

BOND PAYMENT REVENUE 819,567.24 637,742.83 406,377.12 812,754.24 812,754.22 811,825.28

OTHER INCOME 28.16 1.94 - - - -

INTEREST INCOME GENERAL FUND 557.62 144.79 20.53 41.06 - -

INTEREST INCOME-SWEEP 4.79 - - - - -

INTEREST INCOME DEBT SERVICE 1,078.05 825.12 23.10 46.20 - 902.92

INTEREST INCOME RESERVE 2,046.53 2,074.97 1,036.79 2,073.58 1,194.82 907.20

TOTAL OTHER REVENUES 823,282.39 640,789.65 407,457.54 814,915.08 813,949.04 813,635.39

SALARIES & WAGES

OPERATIONS 16,220.35 16,274.04 7,842.75 15,685.50 15,839.08 19,352.28

MAINTENANCE 442.03 - - - - -

ADMIN-OFFICE 16,758.42 6,214.54 3,457.98 6,915.96 7,771.28 9,165.78

PAYROLL TAXES 2,416.66 1,805.16 966.50 1,933.00 2,005.98 2,444.43

OFFICE MANAGEMENT 1,847.37 2,439.98 1,460.68 2,921.36 2,611.68 3,435.22

TOTAL SALARIES & WAGES 37,684.83 26,733.72 13,727.91 27,455.82 28,228.02 34,397.72


SERVICE AGREEMENTS - - 0.04 0.08 - -

TOTAL PURCHASED & CONTRACTED SERVICES - - 0.04 0.08 - -


DATA PROCESSING 109.09 282.61 43.41 86.82 240.38 265.40

RECORDS MANAGEMENT 565.35 128.07 110.35 220.70 867.37 223.30

MANAGEMEMT EXPENSE 54.69 20.23 - - - -

CONTRIBUTIONS/DONATIONS 41.25 9.00 - - - -

INSURANCE EXPENSE 2,873.96 1,024.67 650.28 1,300.56 1,309.52 1,544.77

JANITORIAL SERVICES & SUPPLIES - 0.94 - - - -

STATIONERY & OFFICE SUPPLIES 21.05 2.38 0.33 0.66 - -

TRAINING 6.80 14.47 12.38 24.76 30.00 30.00

SAFETY EQUIPMENT 272.17 48.89 33.84 67.68 75.00 75.00

TOTAL SUPPLIES, MATERIALS & UTILITIES 3,944.36 1,531.26 850.59 1,701.18 2,522.27 2,138.47

39








VEHICLES - REPAIRS & MAINT - - 1.30 2.60 - -

PIPING (DISTRIBUTION) - 3,060.08 976.00 1,952.00 3,500.00 3,000.00

INSTRUMENTS - - 198.00 396.00 - 500.00

RADIO/COMMUNICATIONS 302.20 238.28 41.55 83.10 50.00 55.82

GASOLINE & OIL EXPENSE - 2.09 0.05 0.10 - -

TOTAL MAINTENANCE, REPAIRS & PARTS 302.20 3,300.45 1,216.90 2,433.80 3,550.00 3,555.82

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS - HEALTH INS 3,699.79 4,050.38 2,553.37 5,106.74 4,547.12 7,950.75

EMPLOYEE BENEFITS DENTAL 97.84 222.11 129.43 258.86 249.35 260.12

EMPLOYEE BENEFITS VISION 26.28 57.44 33.82 67.64 64.48 88.27

EMPLOYEE BENEFITS - LIFE INS 265.44 292.69 127.81 255.62 167.90 136.13

EMPLOYEE BENEFITS - TC&DRS 2,907.13 2,709.66 1,350.18 2,700.36 2,772.77 1,975.68

EMPLOYEE BENEFITS-401(K) 702.89 728.31 345.30 690.60 738.03 911.50

WORKERS COMPENSATION INSURANCE 452.89 359.78 278.64 557.28 557.10 656.32

TOTAL EMPLOYEE BENEFITS 8,152.26 8,420.37 4,818.55 9,637.10 9,096.75 11,978.76


ADMIN -GASOLINE & OIL EXPENSE 24.24 6.97 3.01 6.02 48.50 55.00

ADMIN-DATA PROCESSING 1,097.96 287.40 274.14 548.28 1,674.66 1,105.94

ADMIN-DIRECTOR'S EXPENSE 1,016.75 446.94 139.50 279.00 651.84 1,122.00

ADMIN-MANAGEMENT EXPENSE 936.62 334.56 205.67 411.34 417.10 473.00

ADMIN-EMPL BENEFIT HEALTH INS 2,267.52 928.19 582.72 1,165.44 1,250.38 1,669.31

EMPLOYEE BENEFITS DENTAL 88.24 63.93 38.02 76.04 86.12 65.45

EMPLOYEE BENEFITS VISION 22.78 16.09 9.76 19.52 21.68 22.16

ADMIN-EMPL BENEFIT LIFE INS 245.59 96.70 46.36 92.72 70.72 49.51

ADMIN-EMPL BENEFIT TC & DRS 1,901.41 1,023.54 542.44 1,084.88 1,167.86 794.67

ADMIN - 401 (K) 670.75 248.58 138.36 276.72 310.85 366.63

ADMIN-INSURANCE EXPENSE - - 2.96 5.92 - -

ADMIN-WORKERS COMP INSURANCE 12.51 14.15 13.08 26.16 26.12 28.91

ADMIN-CONSULTANTS 3,077.04 768.21 576.78 1,153.56 1,247.42 1,414.60

ADMIN-LEGAL EXPENSE 585.18 245.15 80.67 161.34 271.60 308.00

ADMIN-MAINT OFFICE BLDG & GRND 75.42 37.90 17.42 34.84 77.60 88.00

ADMIN-CONTRACT SERVICES 329.71 118.34 6.12 12.24 29.10 33.30

ADMIN-JANITORIAL SERVICE & SUP 90.24 34.16 17.96 35.92 50.05 56.76

ADMIN-STATIONARY & OFFICE SUPP 594.54 232.56 81.14 162.28 257.05 291.50

40







ADMIN-TELEPHONE 264.86 54.51 24.18 48.36 58.20 66.00

ADMIN-TRAINING 84.21 139.77 21.34 42.68 194.00 220.00

ADMIN-DUES/SUBSCRIPTIONS 144.78 45.90 99.40 198.80 67.90 77.00

ADMIN-SAFETY EQUIPMENT 83.44 23.04 60.86 121.72 19.40 22.00

ADMIN-HEAT,LIGHT,WATER 9.17 3.34 1.60 3.20 4.85 5.50

ADMIN-VEHICLE REPAIRS & MAINT 59.54 15.46 33.98 67.96 29.10 33.00

ADMIN-SERVICE AGREEMENTS 241.70 122.94 61.38 122.76 160.05 242.00

TOTAL GENERAL & ADMINISTRATIVE EXPENSES 13,924.20 5,308.33 3,078.85 6,157.70 8,192.15 8,610.24

PROFESSIONAL FEES

ENGINEERING 48.68 - - - - -

LEGAL EXPENSE 3.16 9.10 - - - -

AUDITING EXPENSE (OUTSIDE) 1,626.24 343.41 291.88 583.76 320.10 440.00

TOTAL PROFESSIONAL FEES 1,678.08 352.51 291.88 583.76 320.10 440.00


DEPRECIATION 76,448.15 840,320.94 447,462.78 894,925.56 - -

TOTAL NON-OPERATING EXPENSES 76,448.15 840,320.94 447,462.78 894,925.56 - -


CAPITAL 37,211.60 39,482.10 - - - 250,000.00

ADMIN-CAPITAL 7,518.75 2,040.79 205.22 410.44 902.10 1,045.00

TOTAL CAPITAL IMPROVEMENTS 44,730.35 41,522.89 205.22 410.44 902.10 251,045.00

OTHER USES

CURRENT REVENUE BONDS 680,000.00 700,000.00 - 725,000.00 725,000.00 755,000.00

INTEREST EXPENSE 134,175.00 113,458.34 51,513.00 103,026.00 103,026.04 56,052.08

BOND HANDLING FEE 2,500.00 4,175.00 - - 4,250.00 4,250.00

BOND ISSUANCE EXPENSE - 1,250.00 - - - -

TOTAL OTHER USES 816,675.00 818,883.34 51,513.00 828,026.00 832,276.04 815,302.08

TOTAL EXPENSES 1,003,539.43 1,746,373.81 523,165.72 1,771,331.44 885,087.43 1,127,468.09

OTHER SOURCES

CASH USED 144,999.96 - - - - -

TOTAL OTHER SOURCES 144,999.96 - - - - -

NET CASH BASIS SOURCES (USES) 21,446.76 (1,064,970.76) (89,302.48) (903,604.96) (18,327.00) (1,666.69)

41

FY2016 Budget Notes-Galveston Projects June 26, 2015

1. Operating Revenues – Operating Revenues for FY2016 for are projected to total

$312,166.00, based on fees collected from the City of Galveston.

2. Other Revenues - For FY2016 are projected to total $813,635.39, consisting mostly of Bond Payment Revenue $811,825.28.


Galveston Projects Operations Staff-Utilizes 0.37 FTE’s for a total cost of $24,530.75

General & Administration Staff- Utilizes .0935 FTE’s, allocated by time, to support the management and implementation of the 1997 Galveston Projects Operations for a total cost of $9,866.97.

4. Supplies, Materials & Utilities – Includes expenses for supplies for data processing, records management, insurance expense, training and safety equipment totaling $2,138.47.


6. General & Administration Expenses - – Includes $8,610.24 for expenses incurred by General & Administration (G&A) to support the work performed by the G&A staff to support the 1997 Galveston Projects Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, rentals, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted.

7. Capital Improvements – Costs totaling $251,045.00. Major projects include: Replacement of Old Galveston Line($100,000.00) and Feasibility Study-Galveston Bay Line ($150,000.00).

8. Bond Principal-Payment of $755,000.00 for 1997 Galveston Projects.

42

CHOCOLATE BAYOU OPERATIONS

(21)



SUMMARY BUDGET

CHOCOLATE BAYOU OPERATIONS (21)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES 1,717,897.98 768,339.13 1,536,678.26 3,163,519.02 2,935,085.23

OTHER REVENUES 1,194,704.80 1,061,822.18 1,089,653.44 1,064,244.26 1,070,302.09

TOTAL REVENUES 2,912,602.78 1,830,161.31 2,626,331.70 4,227,763.28 4,005,387.32

SALARIES & WAGES 621,220.85 343,053.49 686,106.98 726,310.49 867,013.69


PURCHASED & CONTRACTED SERVICES 305,299.87 249,924.47 499,848.94 458,860.41 664,063.18

SUPPLIES, MATERIALS & UTILITIES 187,338.70 141,654.23 283,308.46 476,967.03 226,749.27




TOTAL EXPENSES 1,657,589.52 1,029,583.33 2,059,166.66 2,355,059.72 2,522,970.29

NET REVENUES OVER EXPENSES 1,255,013.26 800,577.98 567,165.04 1,872,703.56 1,482,417.03

LESS: NON-OPERATING EXPENSES 3,507,295.92 2,223,672.96 4,447,345.92 - -

LESS: CAPITAL IMPROVEMENTS 1,794,053.90 128,937.39 566,902.49 3,058,459.30 1,082,508.50

LESS: OTHER USES 1,043,097.92 11,409.30 1,032,818.60 1,032,818.62 1,052,818.62

ADD: OTHER SOURCES 1,917,900.00 1,125,000.00 2,250,000.00 2,250,000.00 670,393.56

NET CASH BASIS SOURCES (USES) (3,171,534.48) (438,441.67) (3,229,901.97) 31,425.64 17,483.47

43




Ending Actual Final



OPERATING REVENUES

METER WATER SALES 1,507,757.91 733,758.90 1,467,517.80 1,387,736.65 2,854,320.98

IRRIGATION INCOME 210,140.07 34,580.23 69,160.46 1,775,782.37 80,764.25

TOTAL OPERATING REVENUES 1,717,897.98 768,339.13 1,536,678.26 3,163,519.02 2,935,085.23

OTHER REVENUES

BOND PAYMENT REVENUE 1,046,101.03 1,033,990.92 1,033,990.92 1,055,174.22 1,057,349.74

OTHER INCOME 137,581.91 22,450.00 44,900.00 - -

INTEREST INCOME-GENERAL 9,392.12 4,539.50 9,079.00 - 12,095.94

INTEREST INCOME AIM 54.91 6.29 12.58 - -

INTEREST INCOME-DEBT SERVICE 859.50 14.06 28.12 9,070.04 11.40

INTEREST INCOME-CONSTRUCTION 715.33 821.41 1,642.82 - 845.01

TOTAL OTHER REVENUES 1,194,704.80 1,061,822.18 1,089,653.44 1,064,244.26 1,070,302.09

SALARIES & WAGES

OPERATIONS 133,457.74 63,935.74 127,871.48 142,297.41 195,824.70

MAINTENANCE 217,321.64 121,154.01 242,308.02 278,696.52 267,014.66

ADMIN-OFFICE 97,136.80 53,427.18 106,854.36 120,254.61 153,568.54

PAYROLL TAXES FICA 43,241.27 24,384.72 48,769.44 51,614.26 61,613.14




CONTRACT WATER COST 176,638.15 196,168.78 392,337.56 318,260.41 520,178.18

SERVICE AGREEMENTS 728.22 426.19 852.38 600.00 600.00


TOTAL PURCHASED & CONTRACTED SERVICES 305,299.87 249,924.47 499,848.94 458,860.41 664,063.18


POWER - ELECTRIC 112,991.60 94,779.61 189,559.22 367,947.94 112,991.60

POWER - NATURAL GAS 23,313.82 16,571.42 33,142.84 40,000.00 36,000.00


SUPPLIES OPERATIONS 1,630.84 521.08 1,042.16 700.00 700.00

RIGHT OF WAY EASEMENT - - - - -

DATA PROCESSING 6,461.79 1,677.64 3,355.28 4,248.29 11,549.41


MANAGEMEMT EXPENSE 1,020.17 737.07 1,474.14 2,500.00 2,500.00


44




Ending Actual Final




JANITORIAL SERVICES & SUPPLIES 250.77 78.69 157.38 100.00 100.00

STATIONERY & OFFICE SUPPLIES 1,702.02 12.65 25.30 100.00 100.00

TELEPHONE 922.94 728.16 1,456.32 800.00 800.00

TNRCC ASSESSMENT 385.00 385.00 770.00 385.00 3,385.00

TRAINING 12,081.15 13,728.25 27,456.50 500.00 4,000.00

SAFETY EQUIPMENT 3,353.76 664.25 1,328.50 5,000.00 5,000.00

TOTAL SUPPLIES, MATERIALS & UTILITIES 187,338.70 141,654.23 283,308.46 476,967.03 226,749.27


SHOP SUPPLIES 2,167.43 1,042.17 2,084.34 2,000.00 2,000.00

RESERVOIRS & CANALS 39,187.34 64,154.92 128,309.84 87,000.00 85,000.00

BUILDINGS - MAINT 11,572.89 2,379.83 4,759.66 3,500.00 3,500.00


EQUIPMENT - HEAVY 106.71 - - - -

EQUIPMENT - LIGHT 689.91 561.21 1,122.42 - -

GROUNDS - MAINTENANCE 769.17 368.27 736.54 550.00 500.00

MECHANICAL 12,982.49 3,734.65 7,469.30 2,500.00 5,000.00

ELECTRICAL 1,917.55 4,596.22 9,192.44 11,000.00 10,000.00

PUMPING PLANTS -MOTORS&CONTROL - - - 1,000.00 -

PIPING (DISTRIBUTION) 393.46 - - 10,000.00 10,000.00

INSTRUMENTS 8,476.85 4,693.01 9,386.02 2,500.00 2,500.00

PAINT & INSULATION 191.95 64.66 129.32 250.00 250.00

MAINT - OFFICE BLDG & GROUNDS 217.79 - - 1,500.00 1,000.00


MAINT - TOOLS 680.44 775.57 1,551.14 1,500.00 1,500.00

RENTAL EQUIPMENT - - - - -

OFFICE EQUIPMENT 426.32 - - 100.00 100.00



EMPLOYEE BENEFITS



EMPLOYEE BENEFITS VISION 1,713.22 916.97 1,833.94 2,067.51 2,212.31



45




Ending Actual Final












EMPLOYEE BENEFITS DENTAL 1,051.13 591.01 1,182.02 1,345.08 1,096.52


ADMIN-EMPL BENEFIT LIFE INS 1,525.99 714.20 1,428.40 1,094.32 829.45


ADMIN - 401 (K) 3,881.37 2,136.97 4,273.94 4,810.18 6,142.74





ADMIN-MAINT OFFICE BLDG & GRND 619.71 269.52 539.04 1,200.80 1,474.40

ADMIN-CONTRACT SERVICES 1,935.29 94.63 189.26 450.30 557.98



ADMIN-TELEPHONE 891.17 376.04 752.08 900.60 1,105.80

ADMIN-TRAINING 2,292.34 331.84 663.68 3,002.00 3,686.00

ADMIN-DUES/SUBSCRIPTIONS 749.99 1,537.87 3,075.74 1,050.70 1,290.10

ADMIN-SAFETY EQUIPMENT 401.33 941.58 1,883.16 300.20 368.60


ADMIN-VEHICLE REPAIRS & MAINT 251.77 526.36 1,052.72 450.30 552.90

ADMIN-SERVICE AGREEMENTS 2,010.35 956.64 1,913.28 2,476.65 4,054.60


PROFESSIONAL FEES

ENGINEERING 40,115.72 7,256.25 14,512.50 50,000.00 50,000.00

LEGAL EXPENSE 42,691.34 1,078.00 2,156.00 50,000.00 50,000.00



46




Ending Actual Final




DEPRECIATION 3,507,295.92 2,223,672.96 4,447,345.92 - -

TOTAL NON-OPERATING EXPENSES 3,507,295.92 2,223,672.96 4,447,345.92 - -


CAPITAL CHOCOLATE BAYOU 1,760,675.44 125,603.36 558,545.45 3,044,500.00 1,065,000.00

ADMIN-CAPITAL 33,378.46 3,334.03 8,357.04 13,959.30 17,508.50

TOTAL CAPITAL IMPROVEMENTS 1,794,053.90 128,937.39 566,902.49 3,058,459.30 1,082,508.50

OTHER USES

CURRENT REVENUE BONDS 990,000.00 - 1,010,000.00 1,010,000.00 1,030,000.00

INTEREST EXPENSE 51,757.92 11,409.30 22,818.60 22,818.62 22,818.62

BOND HANDLING FEE 1,340.00 - - - -

TOTAL OTHER USES 1,043,097.92 11,409.30 1,032,818.60 1,032,818.62 1,052,818.62

TOTAL EXPENSES 8,002,037.26 3,393,602.98 8,106,233.67 6,446,337.64 4,658,297.41

OTHER SOURCES

CASH USED 1,917,900.00 1,125,000.00 2,250,000.00 2,250,000.00 670,393.56

TOTAL OTHER SOURCES 1,917,900.00 1,125,000.00 2,250,000.00 2,250,000.00 670,393.56

NET CASH BASIS SOURCES (USES) (3,171,534.48) (438,441.67) (3,229,901.97) 31,425.64 17,483.47

47

FY2016 Budget Notes – Chocolate Bayou Operations June 26, 2015

1. Operating Revenues – Operating Revenues for FY2016 for the Chocolate Bayou

Operations are based on fees collected for the following participants: Firm Contract Customers- Based on water use, the estimated revenue is

$2,547,161.68. Firm Contract customers pay $465.2350 per MG. Option Water Contract Customers- Based on water use, the estimated revenue is

$305,659.40.Option Water Contract Customers pay $93.05 per MG. Interruptible Water Agreement Customers- Based on water use, the estimated

revenue is $82,264.25, of which $80,764.25 is Irrigation Income. Interruptible Water Agreement Customers pay varying rates based on availability.

2. Other Revenues – For FY2016 are anticipated to be $1,070,302.09, consisting mostly of Bond Payment Revenue $1,057,349.74.


Chocolate Bayou Operations Staff- Utilizes 10.71 FTE’s for a total cost of $701,697.16.

General & Administration Staff- Utilizes 1.5666 FTE’s, allocated by time, to support the management and implementation of the Canal Operations for a total cost of $165,316.53.

4. Professional Fees- Include expenses such as attorneys, auditors, engineers, etc., for a total of $107,372.00. Legal Fee and Auditing are projected to be $50,000.00 and $7,372.00, respectively. Engineering fees are projected to be $50,000.00 for non-capital related engineering and other professional services to support the Chocolate Bayou Operations.

5. Purchased & Contracted Services – Services purchased and contracted from third party providers totaling $664,063.18. Included in the total is $520,178.18 for expenses related to contract water cost purchases from the Brazos River Authority. Additionally, $143,285.00 for expenses related to contract mowing and mechanical services.

6. Supplies, Materials & Utilities – Includes expenses for supplies for: office, employees, facilities, and equipment, in addition to electric, water, gas, telephone and other utilities, totaling $226,749.27. The single largest expense is power costs in the amount of $112,991.60.

7. Maintenance, Repairs & Parts – Includes expenses for routine maintenance, building and grounds maintenance, and security monitoring, totaling $202,473.31. Also included in the total is $85,000.00 for reservoirs and canals and $70,000.00 for gasoline and oil expense.

48


9. General & Administration Expenses – Includes $144,260.67 for expenses incurred by

General & Administration (G&A) to support the work performed by the G&A staff to support the Chocolate Bayou Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, rentals, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted.

10. Capital Improvements – Costs totaling $1,082,508.50. Major projects include: House Improvements ($100,000.00), Pump Station Support Piling Rehabilitation ($100,000.00), Siphon under RR Tracks at DR 169 ($400,000.00) and Mustang Bayou Reservoir Equalizer Pipes ($100,000.00).

11. Bond Principal-Payment of $1,030,000.00 for the Chocolate Bayou System.

12. Cash Used-Utilized $670,393.56 from FY2015 carryforward of cash funds.

49

LEAGUE CITY SE WATER PURIFICATION

PLANT (SEWPP) (04)



SUMMARY BUDGET

LEAGUE CITY SE WATER PURIFICATION PLANT (SEWPP) (04)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 2,965,375.62 150,848.92 301,697.84 267,810.56 269,511.97

TOTAL REVENUES 5,638,393.44 1,318,397.71 2,636,795.42 3,771,588.16 3,851,440.52

SALARIES & WAGES 4,922.57 3,293.23 6,586.46 6,899.62 10,405.16

PROFESSIONAL FEES 8,671.99 794.33 1,588.66 20,264.00 5,464.00

PURCHASED & CONTRACTED SERVICES 2,639,759.43 925,817.64 1,851,635.28 2,467,282.07 2,691,954.12

SUPPLIES, MATERIALS & UTILITIES 933.94 654.95 1,309.90 1,795.39 1,864.51

MAINTENANCE, REPAIRS & PARTS 173.63 32.41 64.82 36.11 58.86

EMPLOYEE BENEFITS 120.48 129.19 258.38 - -


TOTAL EXPENSES 2,658,431.77 933,232.91 1,866,465.82 2,503,033.60 2,718,826.55

NET REVENUES OVER EXPENSES 2,979,961.67 385,164.80 770,329.60 1,268,554.56 1,132,613.97

LESS: NON-OPERATING EXPENSES 449,955.29 592,611.96 1,185,223.92 - -

LESS: CAPITAL IMPROVEMENTS 2,673,491.85 16,937.34 33,874.68 1,000,744.00 863,102.00

LESS: OTHER USES 276,707.14 27,912.48 265,824.96 270,825.00 274,512.50


NET CASH BASIS SOURCES (USES) (420,192.61) (252,296.98) (714,593.96) (3,014.44) (5,000.53)

50




Ending Actual Final



OPERTATING REVENUES



OTHER REVENUES

BOND PAYMENT REVENUE 274,129.68 133,653.84 267,307.68 267,307.63 268,748.29

OTHER INCOME 2,688,224.79 16,578.65 33,157.30 - -

INTEREST INCOME-GENERAL FUND 198.92 48.92 97.84 - -

INTEREST INCOME- DEBT SERVICE 1.12 19.63 39.26 - 291.19

INTEREST INCOME-1999B DEBT 250.82 7.14 14.28 - -

INTEREST INCOME-99B RESERVE 1,080.71 540.00 1,080.00 502.93 472.49

INTEREST INCOME-RESERVE FUND 0.23 0.74 1.48 - -

OTHER INCOME 1,489.35 - - - -

TOTAL OTHER REVENUES 2,965,375.62 150,848.92 301,697.84 267,810.56 269,511.97

SALARIES & WAGES

OPERATIONS 2.08 1.00 2.00 - -

ADMIN-OFFICE 4,278.64 2,861.33 5,722.66 6,409.31 9,665.74

PAYROLL TAXES 317.86 250.42 500.84 490.31 739.43

OFFICE MANAGEMENT 323.99 180.48 360.96 - -



CONTRACT WATER COST 2,639,759.43 925,817.60 1,851,635.20 2,467,282.07 2,691,954.12

SERVICE AGREEMENTS - 0.04 0.08 - -

TOTAL PURCHASED & CONTRACTED SERVICES 2,639,759.43 925,817.64 1,851,635.28 2,467,282.07 2,691,954.12


DATA PROCESSING 30.20 - - - -

RECORDS MANAGEMENT 92.50 91.00 182.00 715.37 235.48

MANAGEMEMT EXPENSE 14.61 - - - -


INSURANCE EXPENSE 742.77 536.34 1,072.68 1,080.02 1,629.03

JANITORIAL - SUPPLIES 0.68 - - - -

STATIONERY & OFFICE SUPPLIES 0.95 - - - -

TRAINING 10.45 - - - -

SAFETY EQUIPMENT 35.28 27.61 55.22 - -

TOTAL SUPPLIES, MATERIALS & UTILITIES 933.94 654.95 1,309.90 1,795.39 1,864.51

51




Ending Actual Final




VEHICLES - REPAIRS & MAINT - - - - -

RADIO/COMMUNICATIONS 172.11 32.38 64.76 36.11 58.86

GASOLINE & OIL EXPENSE 1.52 0.03 0.06 - -

TOTAL MAINTENANCE, REPAIRS & PARTS 173.63 32.41 64.82 36.11 58.86

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS - HEALTH INS 68.36 100.69 201.38 - -

EMPLOYEE BENEFITS DENTAL 4.40 2.51 5.02 - -

EMPLOYEE BENEFITS VISION 1.10 0.62 1.24 - -

EMPLOYEE BENEFITS - LIFE INS 5.24 2.41 4.82 - -

EMPLOYEE BENEFITS - TC&DRS 28.30 15.72 31.44 - -

EMPLOYEE BENEFITS-401(K) 13.08 7.24 14.48 - -

TOTAL EMPLOYEE BENEFITS 120.48 129.19 258.38 - -



ADMIN-DATA PROCESSING 203.84 225.99 451.98 1,381.16 1,166.26

ADMIN-DIRECTOR'S EXPENSE 321.49 114.63 229.26 537.60 1,183.20

ADMIN-MANAGEMENT EXPENSE 304.10 163.97 327.94 344.00 498.80

ADMIN-EMPL BENEFIT HEALTH INS 666.86 483.67 967.34 1,030.78 1,760.36

EMPLOYEE BENEFITS DENTAL 46.20 31.63 63.26 71.41 69.02


ADMIN-EMPL BENEFIT LIFE INS 67.66 38.35 76.70 58.32 52.21

ADMIN-EMPL BENEFIT TC & DRS 721.12 423.35 846.70 963.19 838.02

ADMIN - 401 (K) 170.88 114.48 228.96 256.37 386.63



ADMIN-CONSULTANTS 554.84 475.66 951.32 1,028.80 1,491.76

ADMIN-LEGAL EXPENSE 177.06 66.53 133.06 224.00 324.80

ADMIN-MAINT OFFICE BLDG & GRND 27.40 14.36 28.72 64.00 92.80

ADMIN-CONTRACT SERVICES 85.46 5.05 10.10 24.00 35.12


ADMIN-STATIONARY & OFFICE SUPP 159.97 66.34 132.68 212.00 307.40

ADMIN-TELEPHONE 39.35 19.75 39.50 48.00 69.60

ADMIN-TRAINING 100.34 17.42 34.84 160.00 232.00

ADMIN-DUES/SUBSCRIPTIONS 33.14 81.96 163.92 56.00 81.20

ADMIN-SAFETY EQUIPMENT 14.33 50.19 100.38 16.00 23.20

52




Ending Actual Final




ADMIN-VEHICLE REPAIRS & MAINT 11.23 27.96 55.92 24.00 34.80

ADMIN-SERVICE AGREEMENTS 88.78 49.90 99.80 132.00 255.20


PROFESSIONAL FEES

CONSULTANTS 4,464.39 - - - -

ENGINEERING - - - - -

LEGAL EXPENSE 3,959.57 544.50 1,089.00 20,000.00 5,000.00

AUDITING EXPENSE (OUTSIDE) 248.03 249.83 499.66 264.00 464.00

TOTAL PROFESSIONAL FEES 8,671.99 794.33 1,588.66 20,264.00 5,464.00


DEPRECIATION 449,955.29 592,611.96 1,185,223.92 - -

TOTAL NON-OPERATING EXPENSES 449,955.29 592,611.96 1,185,223.92 - -


CAPITAL 2,672,017.92 16,786.55 33,573.10 1,000,000.00 862,000.00

ADMIN-CAPITAL 1,473.93 150.79 301.58 744.00 1,102.00

TOTAL CAPITAL IMPROVEMENTS 2,673,491.85 16,937.34 33,874.68 1,000,744.00 863,102.00

OTHER USES

CURRENT REVENUE BONDS 210,000.00 - 210,000.00 210,000.00 220,000.00


BOND HANDLING FEE 4,095.00 - - 5,000.00 5,000.00

BOND ISSUANCE EXPENSE 2,500.00 - - - -

TOTAL OTHER USES 276,707.14 27,912.48 265,824.96 270,825.00 274,512.50

TOTAL EXPENSES 6,058,586.05 1,570,694.69 3,351,389.38 3,774,602.60 3,856,441.05


53

FY2016 Budget Notes – League City Southeast Water Purification Plant June 26, 2015

1. Operating Revenues – Operating Revenues for FY2016 for League City SEWPP are

projected to total $3,581,928.55 based on fees collected.

2. Other Revenues – For FY2016 are projected to total $269,511.97, consisting mostly of Bond Payment Revenue $268,748.29.

3. Salaries & Wages – Staffing for FY2016 includes 0.0986 Full Time Equivalents (FTEs), which is comprised solely of G&A Staff. Total cost for services is $10,405.16.

4. Purchase & Contracted Services – Services purchased and contracted from third party providers totaling $2,691,954.12 which is comprised of contract water cost purchases from the City of Houston $2,505,804.12 and the City of South Houston fee of $186,150.00.

5. General & Administrative Expenses – Includes $9,079.89 for expenses incurred by General & Administration to support the work performed by the staff within G & A noted above who support the League City SEWPP Operations. These costs include such operational expense items as professional fee, purchased & contracted services, supplies, materials, utilities, maintenance/repairs & parts, and employee benefits associated with the support provided by G & A staff previously noted.

6. Capital Improvements – Costs totaling $863,102.00.

Engineering Study to replace Highway 3 Line ($862,000.00)

7. Bond Principal – Payment of $220,000.00 for the League City SEWPP.

54

PEARLAND SE WATER PURIFICATION

PLANT (SEWPP) (22)



SUMMARY BUDGET

PEARLAND SE WATER PURIFICATION PLANT (SEWPP) (22)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES 926,729.59 479,175.41 958,350.82 814,388.60 1,056,992.51

OTHER REVENUES - - - - -

TOTAL REVENUES 926,729.59 479,175.41 958,350.82 814,388.60 1,056,992.51

SALARIES & WAGES 4,922.57 2,931.44 5,862.88 6,123.41 6,548.08

PROFESSIONAL FEES 254.60 759.01 1,518.02 234.30 292.00

PURCHASED & CONTRACTED SERVICES 844,971.99 374,027.15 748,054.30 799,744.36 1,041,186.62

SUPPLIES, MATERIALS & UTILITIES 949.88 581.25 1,162.50 1,593.40 1,173.36

MAINTENANCE, REPAIRS & PARTS 173.61 30.26 60.52 36.12 37.04

EMPLOYEE BENEFITS 120.48 120.44 240.88 - -


TOTAL EXPENSES 855,180.03 380,700.89 761,401.78 813,728.30 1,054,951.56

NET REVENUES OVER EXPENSES 71,549.56 98,474.52 196,949.04 660.30 2,040.95


LESS: CAPITAL IMPROVEMENTS 1,473.93 148.46 296.92 660.30 693.50

LESS: OTHER USES - - - - 1,347.45


NET CASH BASIS SOURCES (USES) (313,427.65) (157,301.24) (314,602.48) 0.00 (0.00)

55




Ending Actual Final



OPERATING REVENUES

METER WATER SALES 926,729.59 479,175.41 958,350.82 814,388.60 1,056,992.51

TOTAL OPERATING REVENUES 926,729.59 479,175.41 958,350.82 814,388.60 1,056,992.51

OTHER REVENUES

OTHER INCOME - - - - -

INTEREST INCOME-GENERAL - - - - -

INTEREST INCOME-GENERAL SWEEP - - - - -

TOTAL OTHER REVENUES - - - - -

SALARIES & WAGES

OPERATIONS 2.08 0.98 1.96 - -

ADMIN-OFFICE 4,278.64 2,531.86 5,063.72 5,688.26 6,082.75

PAYROLL TAXES 317.86 222.94 445.88 435.15 465.33

OFFICE MANAGEMENT 323.99 175.66 351.32 - -



CONTRACT WATER COST 844,971.99 374,027.12 748,054.24 799,744.36 1,041,186.62

SERVICE AGREEMENTS - 0.03 0.06 - -

TOTAL PURCHASED & CONTRACTED SERVICES 844,971.99 374,027.15 748,054.30 799,744.36 1,041,186.62


DATA PROCESSING 30.20 - - - -

RECORDS MANAGEMENT 92.50 80.76 161.52 634.88 148.19

MANAGEMEMT EXPENSE 14.61 - - - -


INSURANCE EXPENSE 758.71 475.98 951.96 958.52 1,025.17

JANITORIAL - SUPPLIES 0.68 - - - -

STATIONERY & OFFICE SUPPLIES 0.95 - - - -

TRAINING 10.45 - - - -

SAFETY EQUIPMENT 35.28 24.51 49.02 - -

TOTAL SUPPLIES, MATERIALS & UTILITIES 949.88 581.25 1,162.50 1,593.40 1,173.36


VEHICLES - REPAIRS & MAINT - - - - -

RADIO/COMMUNICATIONS 172.09 30.23 60.46 36.12 37.04

GASOLINE & OIL EXPENSE 1.52 0.03 0.06 - -

TOTAL MAINTENANCE, REPAIRS & PARTS 173.61 30.26 60.52 36.12 37.04

56




Ending Actual Final



EMPLOYEE BENEFITS

EMPLOYEE BENEFITS - HEALTH INS 68.36 92.63 185.26 - -

EMPLOYEE BENEFITS DENTAL 4.40 2.46 4.92 - -

EMPLOYEE BENEFITS VISION 1.10 0.61 1.22 - -

EMPLOYEE BENEFITS - LIFE INS 5.24 2.38 4.76 - -

EMPLOYEE BENEFITS - TC&DRS 28.30 15.30 30.60 - -

EMPLOYEE BENEFITS-401(K) 13.08 7.06 14.12 - -

TOTAL EMPLOYEE BENEFITS 120.48 120.44 240.88 - -



ADMIN-DATA PROCESSING 203.71 200.66 401.32 1,225.78 733.94

ADMIN-DIRECTOR'S EXPENSE 321.38 102.18 204.36 477.12 744.60

ADMIN-MANAGEMENT EXPENSE 241.43 150.07 300.14 305.30 313.90

ADMIN-EMPL BENEFIT HEALTH INS 666.86 426.78 853.56 914.81 1,107.81

EMPLOYEE BENEFITS DENTAL 46.20 27.96 55.92 63.38 43.43


ADMIN-EMPL BENEFIT LIFE INS 67.66 33.82 67.64 51.76 32.85

ADMIN-EMPL BENEFIT TC & DRS 721.12 394.76 789.52 854.83 527.37

ADMIN - 401 (K) 170.88 101.29 202.58 227.53 243.31



ADMIN-CONSULTANTS 554.84 422.18 844.36 913.06 938.78

ADMIN-LEGAL EXPENSE 177.06 59.04 118.08 198.80 204.40

ADMIN-MAINT OFFICE BLDG & GRND 27.37 12.74 25.48 56.80 58.40

ADMIN-CONTRACT SERVICES 85.46 4.48 8.96 21.30 22.10


ADMIN-STATIONARY & OFFICE SUPP 159.82 59.36 118.72 188.15 193.45

ADMIN-TELEPHONE 39.35 17.68 35.36 42.60 43.80

ADMIN-TRAINING 100.34 15.62 31.24 142.00 146.00

ADMIN-DUES/SUBSCRIPTIONS 33.14 72.75 145.50 49.70 51.10

ADMIN-SAFETY EQUIPMENT 14.33 44.55 89.10 14.20 14.60


ADMIN-VEHICLE REPAIRS & MAINT 11.16 24.86 49.72 21.30 21.90

ADMIN-SERVICE AGREEMENTS 88.78 44.87 89.74 117.15 160.60


57




Ending Actual Final



PROFESSIONAL FEES


LEGAL EXPENSE 6.57 544.50 1,089.00 - -

AUDITING EXPENSE (OUTSIDE) 248.03 214.51 429.02 234.30 292.00

TOTAL PROFESSIONAL FEES 254.60 759.01 1,518.02 234.30 292.00


DEPRECIATION 383,503.28 255,627.30 511,254.60 - -

TOTAL NON-OPERATING EXPENSES 383,503.28 255,627.30 511,254.60 - -


ADMIN-CAPITAL 1,473.93 148.46 296.92 660.30 693.50

TOTAL CAPITAL IMPROVEMENTS 1,473.93 148.46 296.92 660.30 693.50

TOTAL EXPENSES 1,240,157.24 636,476.65 1,272,953.30 814,388.60 1,055,645.06

OTHER USES

CASH USED - - - - 1,347.45

TOTAL OTHER USES - - - - 1,347.45

NET CASH BASIS SOURCES (USES) (313,427.65) (157,301.24) (314,602.48) (0.00) (0.00)

58

FY2016 Budget Notes- Pearland Southeast Water Purification Plant June 26, 2015

1. Operating Revenues – Operating Revenues for FY2016 for Pearland SEWPP

Operations are projected to total $1,056,992.51.

2. Salaries & Wages – Staffing for FY2016 includes 0.0621 Full Time Equivalents (FTEs), which is comprised solely of G&A Staff. Total cost for services is $6,548.08.

3. Purchased & Contracted Services – Services purchased and contracted from third party providers totaling $1,041,186.62. The total $1,041,186.62 is for contract water cost purchases from the City of Houston.

4. Supplies, Materials & Utilities – – Includes expenses for supplies for records management and insurance expense totaling $1,173.36.

5. General & Administrative Expenses – Includes $5,714.46 for expenses incurred by General & Administration (G&A) to support the work performed by the G&A staff to support the Pearland SEWPP Operations. These costs include such operational expense items as professional fees, purchased & contracted services, supplies, materials, utilities, rentals, maintenance repairs & parts, and employee benefits associated with the support provided by G&A staff previously noted

6. Capital Improvements – Costs totaling $693.50. Including the Pearland SEWPP Operations share of costs for the purchase of Administrative Projects.

7. Other Uses – Cash of $1,347.45 from FY2015 carryforward of cash funds.

59

GALVESTON COUNTY WCID #12

(10)



SUMMARY BUDGET

GALVESTON COUNTY WCID # 12 (10)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES - - - - 25,000.00


TOTAL REVENUES - - - - 25,000.00

SALARIES & WAGES - - - - -

PROFESSIONAL FEES - - - - -

PURCHASED & CONTRACTED SERVICES - - - - -

SUPPLIES, MATERIALS & UTILITIES - - - - -

MAINTENANCE, REPAIRS & PARTS - - - - -

EMPLOYEE BENEFITS - - - - -

GENERAL & ADMINISTRATIVE EXPENSES - - - - -

TOTAL EXPENSES - - - - -

NET REVENUES OVER EXPENSES - - - - 25,000.00

LESS: NON-OPERATING EXPENSES - - - - -

LESS: CAPITAL IMPROVEMENTS - - - - 25,000.00



NET CASH BASIS SOURCES (USES) - - - - -

60



Galveston County WCID # 12 (10)

Ending Actual Final



OPERTATING REVENUES

METERED WATER SALES - - - - 25,000.00

TOTAL OPERATING REVENUES - - - - 25,000.00

PROFESSIONAL FEES


TOTAL PROFESSIONAL FEES - - - - -


DEPRECIATION - - - - -

TOTAL NON-OPERATING EXPENSES - - - - -


CAPITAL - - - - 25,000.00

ADMIN-CAPITAL - - - - -

CAPITAL OFFSET - - - - -

TOTAL CAPITAL IMPROVEMENTS - - - - 25,000.00

TOTAL EXPENSES - - - - 25,000.00


61

FY2016 Budget Notes-Galveston County WCID #12 June 26, 2015

1. Operating Revenues- Operating Revenues for FY2016 for are projected to total $25,000.00, based on fees collected from Galveston County WCID #12.

2. Capital Improvements- Costs totaling $25,000.00: Pipeline Rehabilitation ($25,000.00).

62

1998 A-B SERIES SOUTH PROJECTS

(14)



SUMMARY BUDGET

1998 A-B SERIES SOUTH PROJECTS (14)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 1,781,122.53 977,640.91 1,955,281.82 1,948,332.82 1,935,818.48

TOTAL REVENUES 1,781,122.53 977,640.91 1,955,281.82 1,948,332.82 2,260,818.48









NET REVENUES OVER EXPENSES 1,781,122.53 977,640.91 1,955,281.82 1,948,332.82 2,260,818.48

LESS: NON-OPERATING EXPENSES 1,599,457.15 856,698.84 1,713,397.68 - -


LESS: OTHER USES 1,947,097.50 996,845.82 1,943,691.64 1,949,691.67 1,945,600.00


NET CASH BASIS SOURCES (USES) (1,765,432.12) (875,903.75) (1,701,807.50) (1,358.85) (9,781.52)

63



1998 A-B SERIES SOUTH PROJECTS (14)

Ending Actual Final



OPERTATING REVENUES



OTHER REVENUES

BOND PAYMENT REVENUE 1,799,576.87 972,076.24 1,944,152.48 1,944,132.27 1,929,486.45

OTHER INCOME (31,632.84) - - - -

INTEREST INCOME REVENUE FUND 1,162.74 57.14 114.28 - 1,480.00

INTEREST INCOME RESERVE 11,718.27 5,494.97 10,989.94 4,200.55 4,460.67

INTEREST INCOME INT & SINKING 297.49 12.56 25.12 - 391.36

TOTAL OTHER REVENUES 1,781,122.53 977,640.91 1,955,281.82 1,948,332.82 1,935,818.48

NON-OPERATING EXPENSESDEPRECIATION 1,599,457.15 856,698.84 1,713,397.68 - -

TOTAL NON-OPERATING EXPENSES 1,599,457.15 856,698.84 1,713,397.68 - -


CAPITAL - - - - 325,000.00


OTHER USES

CURRENT REVENUE BONDS 1,170,000.00 630,000.00 1,210,000.00 1,210,000.00 1,260,000.00

INTEREST EXPENSE-1998A 665,056.29 318,698.94 637,397.88 637,397.92 591,862.50

INTEREST EXPENSE-1998B 104,556.21 48,146.88 96,293.76 96,293.75 87,737.50



TOTAL OTHER USES 1,947,097.50 996,845.82 1,943,691.64 1,949,691.67 1,945,600.00

TOTAL EXPENSES 3,546,554.65 1,853,544.66 3,657,089.32 1,949,691.67 2,270,600.00

NET CASH BASIS SOURCES (USES) (1,765,432.12) (875,903.75) (1,701,807.50) (1,358.85) (9,781.52)

64

FY2016 Budget Notes – 1998 A-B Series South Projects June 26, 2015

1. Operating Revenues- Operating Revenues for FY2016 for are projected to total

$325,000.00, based on fees collected from customers.

2. Other Revenues - For FY2016 for 1998 A-B Series South Projects are projected to total $1,935,818.48, consisting mostly of Bond Payment Revenue $1,929,486.45.

3. Capital Improvements- Costs totaling $325,000.00. Major projects include:

Pipeline Rehabilitation ($125,000.00) and Pipeline Study-10,000 Linear Foot ($200,000.00).

4. Bond Principal-Payment of $1,260,000.00 for the 1998 A-B Series South Projects.

65

1998 C SERIES TEXAS CITY PROJECTS

(15)



SUMMARY BUDGET

1998 C SERIES TEXAS CITY PROJECTS (15)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget

OPERATING REVENUES - - - - -

OTHER REVENUES 628,066.02 313,526.84 627,053.68 625,454.35 619,040.34

TOTAL REVENUES 628,066.02 313,526.84 627,053.68 625,454.35 619,040.34









NET REVENUES OVER EXPENSES 628,066.02 313,526.84 627,053.68 625,454.35 619,040.34


LESS: CAPITAL IMPROVEMENTS - - - - -

LESS: OTHER USES 240,978.75 111,366.66 622,733.32 626,983.33 620,966.67



66



1998 C SERIES TEXAS CITY PROJECTS (15)

Ending Actual Final



OTHER REVENUES


INTEREST INCOME DEBT SERVICE 441.97 20.24 40.48 - 601.72

INTEREST INCOME RESERVE 5,336.39 1,382.40 2,764.80 1,205.96 1,209.60

INTEREST INCOME CONSTRUCTION (2,137.74) - -



DEPRECIATION 678,255.63 382,538.94 765,077.88 - -


OTHER USES


INTEREST EXPENSE-1998 C 234,468.75 111,366.66 222,733.32 222,733.33 206,716.67



OTHER USES 240,978.75 111,366.66 622,733.32 626,983.33 620,966.67

TOTAL EXPENSES 919,234.38 493,905.60 1,387,811.20 626,983.33 620,966.67


67

FY2016 Budget Notes – 1998 C Series Texas City Projects June 26, 2015

1. Other Revenues- Other Revenues for FY2016 for 1998 A-B Series Texas City Projects

are projected to total $619,040.34, consisting mostly of Bond Payment Revenue $617,229.02.

2. Bond Principal-Payment of $410,000.00 for the 1998 C Series Texas City Projects.

68

1998 D SERIES LA MARQUE PROJECTS

(16)



SUMMARY BUDGET

1998 D SERIES LA MARQUE PROJECTS (16)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 256,827.45 124,881.87 249,763.74 249,199.43 248,101.66

TOTAL REVENUES 256,827.45 124,881.87 249,763.74 249,199.43 248,101.66











LESS: CAPITAL IMPROVEMENTS - - - - -

LESS: OTHER USES 256,268.33 33,750.00 247,500.00 251,750.00 248,150.00


NET CASH BASIS SOURCES (USES) (158,834.99) 5,029.29 (169,941.42) (2,550.57) (48.34)

69



1998 D SERIES LA MARQUE PROJECTS (16)

Ending Actual Final



OTHER REVENUES


OTHER INCOME - - - - -

INTEREST INCOME DEBT SERVICE 193.33 2.85 5.70 - 249.52

INTEREST INCOME RESERVE 1,027.88 513.60 1,027.20 468.61 449.40



DEPRECIATION 159,394.11 86,102.58 172,205.16 - -

NON-OPERATING EXPENSES 159,394.11 86,102.58 172,205.16 - -

OTHER USES





TOTAL OTHER USES 256,268.33 33,750.00 247,500.00 251,750.00 248,150.00

TOTAL EXPENSES 415,662.44 119,852.58 419,705.16 251,750.00 248,150.00

NET CASH BASIS SOURCES (USES) (158,834.99) 5,029.29 (169,941.42) (2,550.57) (48.34)

70

FY2016 Budget Notes – 1998 D Series La Marque Projects June 26, 2015

1. Other Revenues- Other Revenues for FY2016 for 1998 A-B Series La Marque Projects

are projected to total $248,101.66, consisting mostly of Bond Payment Revenue $247,402.74.

2. Bond Principal-Payment of $180,000.00 for the 1998 C Series La Marque Projects.

71




SUMMARY BUDGET


Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget


OTHER REVENUES 862,743.72 427,721.13 855,442.26 858,748.17 863,444.30

TOTAL REVENUES 862,743.72 427,721.13 855,442.26 858,748.17 863,444.30











LESS: CAPITAL IMPROVEMENTS 116,508.35 - - - -

LESS: OTHER USES 702,330.00 70,088.64 855,177.28 859,077.23 862,827.81


NET CASH BASIS SOURCES (USES) (566,934.17) 3,393.21 (708,213.58) (329.06) 616.48

72




Ending Actual Final



OTHER REVENUES

2002 GAL BOND PAYMENT 860,643.48 428,644.80 857,289.60 857,289.56 861,487.90

INTEREST INCOME-GENERAL FUND - 83.80 167.60 - -

INTEREST INCOME-INT & SINK 989.24 20.02 40.04 1,458.61 1,956.40

INTEREST INCOME-PROJECT FUND 1,111.00 (1,027.49) (2,054.98) - -



DEPRECIATION 610,839.54 354,239.28 708,478.56 - -



CAPITAL 116,508.35 - - - -

TOTAL CAPITAL IMPROVEMENTS 116,508.35 - - - -

OTHER USES


INTEREST EXPENSE - 70,088.64 140,177.28 140,177.23 123,927.81



TOTAL OTHER USES 702,330.00 70,088.64 855,177.28 859,077.23 862,827.81

TOTAL EXPENSES 1,429,677.89 424,327.92 1,563,655.84 859,077.23 862,827.81

NET CASH BASIS SOURCES (USES) (566,934.17) 3,393.21 (708,213.58) (329.06) 616.48

73

FY2016 Budget Notes – 2002 Galveston Projects June 26, 2015

1. Other Revenues- Other Revenues for FY2016 for 2002 Galveston Projects are projected

to total $863,444.30, consisting mostly of Bond Payment Revenue $861,487.90.

2. Bond Principal-Payment of $735,000.00 for the 2002 Galveston Projects.

74

NORTHLINE GROUP (23)



SUMMARY BUDGET


Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget



TOTAL REVENUES - - - - 140,000.00















75




Ending Actual Final



OPERTATING REVENUES



PROFESSIONAL FEES







CAPITAL - 140,000.00


TOTAL EXPENSES - - - - 140,000.00


76

FY2016 Budget Notes – Northline Group June 26, 2015

1. Operating Revenues- Operating Revenues for FY2016 are projected to total

$140,000.00, based on anticipated fees collected.

2. Capital Improvements- Costs totaling $140,000.00. Major projects include: Pipeline Rehabilitation ($40,000.00) and, Pipeline Study-5,000 Linear Foot ($100,000.00).

77

BAYSHORE GROUP (24)



SUMMARY BUDGET

BAYSHORE GROUP (24)

Ending Actual Final


8/31/2014 2/28/2015 FY 2015 Budget Budget



TOTAL REVENUES - - - - 40,000.00















78



BAYSHORE GROUP (24)

Ending Actual Final



OPERTATING REVENUES



PROFESSIONAL FEES







CAPITAL - 40,000.00

ADMIN-CAPITAL - -


TOTAL EXPENSES - - - - 40,000.00


79

FY2016 Budget Notes – Bayshore Group June 26, 2015

1. Operating Revenues- Operating Revenues for FY2016 are projected to total $40,000.00,based on anticipated fees collected.

2. Capital Improvements- Costs totaling $40,000.00. Including for Pipeline Rehabilitation($40,000.00).

80

APPENDIX

Exhibit A

2016 WATER RATES PER MILLION GALLONS

CANAL- System A & B O&M Capital Raw WaterRaw Water -

Pecan GroveOption Water

Rates 79.04 31.75 81.68 365.33 38.49

CANAL- Chocolate Bayou O&M Capital Raw Water Option Water

Rates 172.51 197.72 95.00 93.05

INTERRUPTIBLE WATER Interruptible

Rates

Silvercreek Country Club 309.00

Sugar Creek Country Club 353.09

Texas Brine Corporation 343.10

Mainland Concrete 196.65

First Colony Community Services (Fluor) 268.77

First Colony Commons 196.65

Riverbend Country Club 196.65

Diamond K 196.65

Mag Creek Country Club 196.65

Texas City Golf Course 196.65

THOMAS MACKEY WATER TREATMENT PLANT Raw Water Capital 5 Year Note O&M

Rates 271.63 156.26 31.67 556.39

Pump Station

INDUSTRIAL RATES (subject to final 2016 Bond

Issuance cost)Power Raw Water Reservoir Pump Station Reservoir Pump Station

Water

Treatment

Plant 12

Years

Industrial 21

Years

Industrial-

Less Ashland

Rates 47.04 192.47 15.83 10.35 43.34 69.56 19.99 18.54 84.38

SPOT RAW WATER-(TRUCKED)

$1,000 minimum up to first million and $500 per half million thereafter.

Bond Payment

ReservoirO&M Capital

A-1

2015-2016 GCWA Approved Operating Budgets

Documents