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09-27-2016 HUCM
MINUTES Special Meeting — Hutchinson Utilities Commission Tuesday, September 27, 2016 Call to order — 2:00 p.m. President Luhring called the meeting to order. Members present: President Donna Luhring; Vice President Monty Morrow; Secretary Mark Girard; Commissioner Anthony Hanson; Commissioner Robert Wendorff; General Manager Jeremy Carter. Others present: Jared Martig, Randy Blake, Dave Hunstad, John Webster, and Dan Lang. The purpose of the special meeting was to discuss capital expenditures and to receive feedback from the Board on creating a financial reserve policy. A preliminary draft of a financial reserve policy, a five year budget forecast, and capital projects were presented by GM Carter (Documents attached.) President Luhring requested the Board provide feedback to GM Carter before the next regular commission meeting. There being no further business, a motion was made by Commissioner Hanson, seconded by Commissioner Wendorff to adjourn the meeting at 3:29 p.m. Motion was unanimously carried. WMar�/G-irard,'S'b/c�retary� ATTEST:4k.a'advll&�c Donna Luhring, President r CNIN * HUTCHINSON UTILITIES FINANCIAL RESERVE POLICY A. PURPOSE: In order to maintain stable rates and provide reliable service, Hutchinson Utilities Commission (HUC) must have various tools in place to deal with changes in costs or operational performance. Maintaining appropriate financial reserves is one such tool that ensures sufficient funding is available for current operating, capital and debt service needs. Financial reserves absorb short-term financial variability resulting from unexpected operational changes or can reduce the need for large amounts of debt. This policy establishes a Capital Reserve (CR), which is used to cover acquisition of capital assets, including replacement of existing assets, and an Operating Reserve (OR), which addresses short-term financial volatility. HUC will establish a Capital Reserve and Operating Reserve for each of the two utilities — Electric and Gas. B. DEFINITIONS: Hutchinson Utilities Commission reserves can be classified into three broad categories that include Restricted Cash Reserves, Capital Reserve Funds, and Operating Reserve Funds. A "fund" is a segregation within the Utility's accounting system to keep sources and uses for a particular purpose easily identifiable and reportable. C. GENERAL PROVISIONS In the context of funding future capital equipment or facilities or replacing existing assets with substantial value HUC will analyze the most cost effective and efficient method to finance a project, be it through debt financing, pay -as -you go financing, use of reserves, use of contractual agreements, or through some combination of those various sources or others that may present themselves. At a minimum, reserve balances will be reviewed on an annual basis at, or near, the end of the fiscal year during preparation of the Capital & Operating Spending Plans to ensure adequate compliance with policy and intended funding targets. The minimum funding requirements established for each fund represents the baseline financial condition that is acceptable to the Commission from a risk and long-range financial planning perspective. Maintaining reserves at appropriate levels is a prudent, ongoing business process that consists of an assessment and application of various revenue generating alternatives. These alternatives (either alone or in combination with each other) include, but are not limited to: fees & charges, capital financing, investment of funds, contractual commitments, and levels of capital expenses. I. RESTRICTED RESERVES (RRJ - Restrictions on these monies are imposed by an outside source such as creditors, grantors, contributors, laws or regulations governing use. An example of restricted funds is bond reserve covenants required as a part of debt issuance. The funds are legally protected by bond covenants and can only be used in the event of default by HUC or to pay down principal at maturity. A. Funding Amount — The bond reserve requirements are established at the time of bond issuance. B. The sources of funds for the (RR) come from the undesignated fund balance of each utility which can change annually based on yearly operating performance and accumulated net revenues and, when appropriate, available short-term liquidity arrangements. It. CAPITAL RESERVES (CR) - This reserve is established by action of the board to fund capital projects including electric and gas distribution & transmission system infrastructure, production facilities, and fleet that are a part of the 5 -year capital improvement plan so HUC can avoid issuing bonds to pay for maintaining normal operations. This reserve is not intended to fund large major capital purchases. (he ... Fleet, infrastructure replacement or acquisitions) A. Funding Amount —Minimum funding shall be targeted at the estimated current replacement costs of assets expected to be replaced within the next five years. B. Funding Sources —The sources of funds for the (CR) come from the undesignated fund balance of each utility which can change annually based on yearly operating performance and accumulated net revenues and, when appropriate, available short-term liquidity arrangements. lll. OPERATING RESERVES (ORI—This reserve is established by action of the board to address short- term financial risk or variability resulting from unexpected operating results and to address those financial risks that have a more immediate potential impact on the existing organization cost structure. (i.e... Rate Stabilization Reserve Funds, Catastrophic Reserve Funds, PILOT Reserve Funds, Operating Reserves) A. Risk Exposures —Potential sources of cash flow variability addressed by the (OR) include the following risk exposures: 1. Reductions in overall customer demand, 2. Changes in total system load resulting from the actions of large customers, 3. Failure to achieve the budgeted level of net income, 4. Changes in the costs of purchased power, 5. Catastrophic disasters or community events 6. General operation exposures, such as timing mismatch between revenue receipts and expense payment, unforeseen maintenance costs, regulatory compliance costs, and other unexpected increases in the operating budget B. Funding Amount—Target (OR) level has been set at a minimum of 90 days and a maximum of 120 days of total budgeted operating expenses for both the Electric Division and Gas Division. Since the (OR) changes annually for each division based on the following years budget, the (OR) will be adjusted annually. The (OR) target is in addition to the other operating reserve funds listed above. C. Funding Sources —The sources of funds for the (OR) come from the undesignated fund balance of each utility which can change annually based on yearly operating performance and accumulated net revenues and, when appropriate, available short-term liquidity arrangements. IV. FINANCIAL RESERVES HIERARCHY OF FUNDING —The following lists the priorities applied to HUC's reserves. A. Since normal capital expenditures are known and budgeted, and it is not the intent of HUC to borrow money to cover these types of expenditures, excess cash generated by the utility shall first be used to fund the (CR) to the Target Level. B. Once the Target (CR) level is achieved, excess cash shall be applied to the (OR) C. Once the (OR) Target level is achieved, excess cash shall be as described in the section titled, OPTIONAL USES OF CASH. V. FINANCIAL RESERVES REPLENISHMENT—The above section describes the hierarchy of funding of the reserves. The following describes what actions may be taken to generate the cash and replenish the reserves under different scenarios of each of the two utilities. A. If the (CR) and (OR) are at the Target Level: Take no action B. If the (CR) is at the Target Level and the (OR) is below the Target Level: Take no action during the current year. If the (OR) does not increase to the Target Level during the calendar year, reevaluate the following year and reduce expenses and/or increase revenues, if necessary, to reach the Target Level within the next three years. C. If both the (CR) and (OR) are below the Target Level: Take no action during the current calendar year, reevaluate the following year and reduce expenses and/or increase revenues, if necessary, to reach the Target level for both reserves with the next five years. D. If both the (CR) and (OR) are above the Target Level: If projected to remain above the Target reserves level for the next three years, address with one of the OPTIONAL USES OF CASH. VI. OPTIONAL USES OF CASH - If financial reserves are above the Target Levels (both CR & OR) for any of the two utilities and are projected to remain above the Target reserves level for the next three years, the Commission will consider the following options for uses of cash: A. Debt Management: Debt reduction through defeasance of bonds B. Retain for Longer-term Rate Stabilitv: This option has the practical effect of increasing reserves in the rate stabilization funds. These reserves would then be available for future years either to delay/reduce future rate increases or for capital or debt management. C. Sustained Rate Reduction: Reduce rates if it is projected that the rate reduction could be sustained for a specified period. D. Transfer Excess Funds for a Specific Proiect: This option allows funding of a particular project or priority. VII. FINANCIAL RESERVES FUNDING LEVEL AND FUND BALANCE REVIEWS — The Target levels and fund balance are to be reviewed as follows: A. Target Level Review: Although the actual monetary values are reviewed annually and adjusted to reflect target goals when approving budgets, the Target (CR) and (OR) funding levels are to be evaluated at least every three years. For example, the Commission could revise (reduce or increase) the (CR) or (OR) reserves based on future external factors and forward looking cost drivers. B. Financial Reserves Fund Balance Review: The (CR) and (OR) fund balances are to be monitored monthly by the Finance Department and reviewed annually during the budget review process by the Commission or if an event were suddenly to reduce the fund balance. Detailed 5 Year Budget Forecast Combined Divisions (Electric & Gas) 2015 Actual I 2015 Budget 2016 Budget ! 2017 Budget + 2018 Budget 12019 Budget 1 2020 Budget 12021 Budget OPERATING REVENUES Electric Energy Sales $ 26,505,059 $ 25,564,604 $ 26,252,058 $ 26,405,542 $ 26,693,042 $ 26,980,292 $ 27,138,542 $ 27,156,042 Natural Gas Sales $ 9,923,501 $ 12,014,907 $ 12,190,666 $ 11,557,591 $ 11,557,591 $ 11,557,591 $ 11,557,591 $ 11,557,591 Other Operating Revenues $ 1,715,004 $ 1,647,133 $ 1,658,002 $ 1,666,778 $ 1,671,350 $ 1,679,375 $ 1,688,245 $ 1,710,863 Total Operating Revenues $ 38,143,564 $ 39,226,644 $ 40,100,726 $ 39,629,911 $ 39,921,983 $ 40,217,258 $ 40,384,378 $ 40,424,496 OPERATING EXPENSES Production Operations $ 2,602,580 $ 3,590,522 $ 3,693,254 $ 3,553,390 $ 3,648,160 $ 3,746,496 $ 3,848,550 $ 3,954,482 Maintenance Operations $ 464,184 $ 458,538 $ 498,230 $ 530,496 $ 552,253 $ 574,989 $ 598,749 $ 623,578 Purchased Power/Gas $ 20,695,451 $ 22,443,031 $ 21,089,783 $ 20,927,187 $ 21,277,908 $ 21,634,965 $ 21,771,852 $ 21,459,387 Other Power Supply $ 361,553 $ 482,005 $ 514,668 $ 495,821 $ 518,133 $ 541,449 $ 565,814 $ 591,276 Transmission Operations $ 2,045,209 $ 1,843,251 $ 2,193,760 $ 2,322,256 $ 2,408,946 $ 2,499,104 $ 2,592,868 $ 2,690,383 Maintenance $ 27,567 $ 49,037 $ 36,793 $ 36,724 $ 38,048 $ 39,438 $ 40,898 $ 42,431 Distribution Expense. Operations $ 1,054,088 $ 1,813,627 $ 1,824,470 $ 1,828,134 $ 1,907,254 $ 1,989,813 $ 2,075,960 $ 2,165,850 Maintenance $ 479,000 $ 618,255 $ 618,191 $ 654,233 $ 681,503 $ 709,915 $ 739,514 $ 770,353 Customer Accounts Expense $ 417,219 $ 470,479 $ 493,378 $ 517,950 $ 418,797 $ 432,958 $ 447,628 $ 462,825 Sales Expense $ 294,625 $ 603,112 $ 540,657 $ 540,911 $ 540,911 $ 540,911 $ 540,911 $ 540,911 Administrative & General $ 3,299,819 $ 1,819,145 $ 1,715,462 $ 1,866,775 $ 1,776,273 $ 1,836,888 $ 1,899,734 $ 1,964,897 Depreciation $ 3,824,434 $ 3,756,000 $ 3,756,000 $ 3,808,000 $ 3,808,000 $ 3,808,000 $ 3,808,000 $ 3,808,000 Contribution to the City of Hutchinson $ 738,110 $ 738,110 $ 1,305,256 $ 1,196,331 $ 1,200,003 $ 1,203,711 $ 1,207,456 $ 1,211,239 Total Operating Expenses $ 36,303,838 $ 38,685,111 $ 38,279,902 $ 38,278,208 $ 38,776,189 $ 39,558,637 $ 40,137,934 $ 40,285,612 Operating Income (Loss) $ 1,839,725 $ 541,533 $ 1,820,824 $ 1,351,703 $ 1,145,794 $ 658,621 $ 246,444 $ 138,884 NONOPERATING REVENUES (EXPENSES) Interest Income $ 31,956 $ 65,000 $ 115,000 $ 100,000 $ 100,000 $ 100,000 $ 100,0!X) $ 100,000 Merchandise & Contract Work, Net $ 6,765 $ 27,000 $ 27,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 Miscellaneous Income $ 158,282 $ - $ - $ - $ $ _ $ $ Miscellaneous Expense $ $ $ $ $ $ $ $ Gain (Loss) on Disposal of Assets $ $ $ $ $ $ $ $ Bond Service Fees $ $ (2,400) $ (2,400) $ (2,400) $ (2,400) $ (2,400) $ (2,400) $ (2,400) Bond Premium $ 185,608 $ 185,608 $ 185,608 $ 185,608 $ 185,608 $ 185,608 $ 185,608 $ 185,608 Amortization of Development Study $ (262,972) $ (262,972) $ - $ - $ $ _ $ $ . Amortization of Bond Discount and Issuance Costs $ - $ - $ _ $ _ $ $ _ $ $ Interest Expense - Customer Deposits $ (96) $ (1,000) $ (200) $ (100) $ (100) $ (100) $ (100) $ (100) Interest Expense - Bonds $ (857,029) $ (861,113) $ (812,113) $ (760,588) $ (704,713) $ (634,838) $ (561,088) $ (511,175) Total Nonoperating Revenus (Expenses) $ (737,486) $ (849,876) $ (487,104) $ (444,479) $ (388,605) $ (318,730) $ (2441980) $ (195,067) Net Income (Loss) COGS $ 26,196,544 $ 28,866,383 $ 28,026,488 $ 27,865,874 $ 28,443,448 $ 29,036,441 $ 29,418,731 $ 29,361,537 Gross Profit $ 11,947,020 $ 10,360,261 $ 12,074,238 $ 11,764,037 $ 11,478,535 $ 11,180,817 $ 10,965,647 $ 11,062,959 Gross Margin 31% 26% 30% 30% 29% 28% 27% 27% Operating Margin (%) 5% 1% 5% 3% 3% 2% 1% 0% Net Income (%) of Operating Sales 3% -1% 3% 2% 2% 1% 0% 0% Net Income (%) of Oper. Sales (after cap labor) 0% 0% 0% 4% 4% 3% 2% 2% Net Income $ 907,224 $ 757,189 $ 339,891 $ 1,464 $ (56,183) PCA $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Capitalized Labor -Energy Services $ - $ . $ - $ - $ Capitalized Labor- Production $ 32,000 $ 55,000 $ 15,000 $ 10,000 $ Capitalized Labor- Distribution $ 158,500 $ 177,500 $ 177,500 $ 177,500 $ 177,500 Capitalized Labor- Natural Gas $ 67,000 $ 69,000 $ 45,000 $ 41,500 $ 38,500 Net Income w/Adjustments $ 1,714,724 $ 1,608,689 $ 1,127,391 S 780,464 $ 709,817 w q M7339,891 Net Income $ 907,224 $ 757,189 $ $ 1,464 $ (56,183) PCA $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Depreciation $ 3,808,000 $ 3,808,000 $ 3,808,000 $ 3,808,000 $ 3,808,000 Future Cap Exp $ (2,230,000) $ (7,444,180) $ (748,241) $ (681,740) $ (475,102) 2017 Cap Exp Reimbursed $ 215,000 $ 320,000 $ . $ - $ Principal Debt Payments $ (1,345,000) $ (1,420,000) $ (1,495,000) $ (1,580,000) $ (1,655,000) Combined Cash Flow _ $ 1,905,224 $ (3,428,991) $ 2,454,650 $ 2,097,724 $ , 2,171,715. ,_.._,.,,...._....,,... As necessary $ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 201,000 Actuals I Adopted #'s I Preliminary #'s I 4 Year Electric Division Budget Forecast Assumptions I 2014 Actual I 2015 Actual I 2016 Budget I 2017 Budget 12018 Budget ( 2019 Budget 12020 Budget ( 2021 Budget OPERATING REVENUES Energy Sales Revenue 270,200 $ 270,200 $ 270,200 $ 270,200 Sales - Electric Energy (440, 442, 444) 0% $ 25,090,910 $ 25,390,141 $ 24,344,238 Sales for Resale (447) 0% $ 598,293 $ - $ 1,232,320 Capacity Sales (447) Actual $ 80,000 $ 1,114,918 $ 675,500 Total Energy Sales Revenue (440, 442, 444, 447) $ 25,769,203 $ 26,505,059 $ 26,252,058 Revenue From Other Sources $ 27,260,492 $ 27,418,742 $ 27,436,242 $ Revenue From Other Sources (450,451) 0% $ 292,778 $ 285,738 $ 270,200 Security Lights (454.01) 0% $ 11,301 $ 11,269 $ 10,000 Pole Rental (454.02, 454.03) 0% $ 16 $ - $ - Total Revenue From Other Sources (450, 451, 454) $ 304,095 $ 297,007 $ 280,200 TOTAL OPERATING REVENUES $ 26,073,298 $ 26,802,066 $ 26,532,258 OPERATING EXPENSES Production Operations Operation Supervison & Engineering (546) 4.5% $ 1,037,894 $ 1,045,830 $ 1,678,384 Fuel (547) 1.0% $ 1,918,251 $ 1,390,880 $ 1,859,370 Operating Supplies and Expense (550) 2.5% $ 146,501 $ 165,871 $ 155,500 Total Production Operations (546, 547, 550, 554) $ 3,102,646 $ 2,602,580 $ 3,693,254 Maintenance Operations Structures (554) 0% $ 6,165 $ 3,184 $ 7,000 Generating Units (554) 4.5% $ 375,626 $ 339,876 $ 451,230 Other Equipment (554) 0% $ 118,081 $ 121,123 $ 40,000 Total Maintenance Operations (554) $ 499,872 $ 464,184 $ 498,230 Other Power Supply Expense Purchased Power (555) 2% $ 13,850,238 $ 14,706,630 $ 13,875,028 System Control & Load Dispatch (556) 4.5% $ 328,571 $ 353,405 $ 514,668 Engineering Services (557) 0% $ 9,162 $ 8,148 $ - Total Other Power Supply Expense (555, 556, 557) $ 14,187,971 $ 15,068,183 $ 14,389,696 Transmission Expense Transmission Expense Operation (560) 0% $ 144,106 $ 144,105 $ 145,000 Transmission Expense Operation (565) 4.0% $ 1,512,071 $ 1,785,988 $ 1,875,000 Transmission Expense Operation (567) 0% $ - $ - $ 10,000 Transmission Expense Maintenance (574) 5% $ 28,361 $ 23,231 $ 26,622 Total Transmission Expense (560, 567, 574) $ 1,684,538 $ 1,953,325 $ 2,056,622 Distribution Expense: Distribution Operation (580) 4.5% $ 107,249 $ 119,979 $ 524,820 Distribution Operation (581) 3.5% $ 64,471 $ 61,641 $ 67,567 Distribution Operation (586) 3.5% $ 71,393 $ 68,177 $ 20,872 Distribution Operation (588) 4.5% $ 363,430 $ 380,901 $ 610,965 Distribution Operation (589) 0% $ - $ - $ - Distribution Maintenance (592) 4.0% $ 16,327 $ 10,086 $ 11,893 Distribution Maintenance (594) 4.0% $ 123,852 $ 100,165 $ 118,176 Distribution Maintenance (595) 4.0% $ 12,207 $ 10,571 $ 13,411 Distribution Maintenance (596) 4.0% $ 53,582 $ 90,272 $ 70,659 Distribution Maintenance (598) 4.0% $ 50,586 $ 52,351 $ 42,737 Total Distribution Expense (580 ,581, 586, 588, 589, 592, 594, 595, 596, 598) $ 863,097 $ 894,144 $ 1,481,100 $ 24,095,432 $ 24,095,432 $ 24,095,432 $ 24,095,432 $ 24,095,432 $ 1,305,610 $ 1,305,610 $ 1,305,610 $ 1,305,610 $ 1,305,610 $ 1,004,500 $ 1,292,000 $ 1,579,250 $ 1,737,500 $ 1,755,000 $ 26,405,542 $ 26,693,042 $ 26,980,292 $ 27,138,542 $ 27,156,042 $ 270,200 $ 270,200 $ 270,200 $ 270,200 $ 270,200 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ - $ - $ - $ - $ $ 280,200 $ 280,200 $ 280,200 $ 280,200 $ 280,200 $ 26,685,742 $ 26,973,242 $ 27,260,492 $ 27,418,742 $ 27,436,242 $ 1,625,789 $ 1,698,950 $ 1,775,403 $ 1,855,296 $ 1,938,784 $ 1,772,101 $ 1,789,822 $ 1,807,720 $ 1,825,797 $ 1,844,055 $ 155,500 $ 159,388 $ 163,373 $ 167,457 $ 171,643 $ 3,553,390 $ 3,648,160 $ 3,746,496 $ 3,848,550 $ 3,954,482 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 483,496 $ 505,253 $ 527,989 $ 551,749 $ 576,578 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 530,496 $ 552,253 $ 574,989 $ 598,749 $ 623,578 $ 14,144,963 $ 14,427,862 $ 14,716,419 $ 14,784,120 $ 14,401,778 $ 495,821 $ 518,133 $ 541,449 $ 565,814 $ 591,276 $ 14,640,784 $ 14,945,995 $ 15,257,868 $ 15,349,934 $ 14,993,054 $ 145,000 $ 145,000 $ 145,000 $ 145,000 $ 145,000 $ 2,000,000 $ 2,080,000 $ 2,163,200 $ 2,249,728 $ 2,339,717 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 26,483 $ 27,807 $ 29,197 $ 30,657 $ 32,190 $ 2,181,483 $ 2,262,807 $ 2,347,397 $ 2,435,385 $ 2,526,907 $ 483,099 $ 504,838 $ 527,556 $ 551,296 $ 576,104 $ 72,388 $ 74,922 $ 77,544 $ 80,258 $ 83,067 $ 1,688 $ 1,747 $ 1,808 $ 1,871 $ 1,936 $ 652,965 $ 682,348 $ 713,054 $ 745,141 $ 778,672 $ 12,307 $ 12,799 $ 13,311 $ 13,843 $ 14,397 $ 127,181 $ 132,268 $ 137,559 $ 143,061 $ 148,783 $ 13,908 $ 14,464 $ 15,043 $ 15,645 $ 16,271 $ 75,764 $ 78,795 $ 81,947 $ 85,225 $ 88,634 $ 45,006 $ 46,806 $ 48,678 $ 50,625 $ 52,650 $ 1,484,306 $ 1,548,987 $ 1,616,500 $ 1,686,965 $ 1,760,514 Actuals Adopted #'s I Preliminary #'s 4 Year Electric Division Budget Forecast Assumptions 1 2014 Actual 1 2015 Actual 1 2016 Budget I 2017 Budget 1 2018 Budget 1 2019 Budget 1 2020 Budget 1 2021 Budget Customer Service and Collection Meter Reading (902) Collection Expense (903) Bad Debt Write offs (904) Customer Services (906) Total Customer Service and Collection (902, 903, 904, 906) Sales Expense Supervison (911) Misc. Selling Expense (916) Total Sales Expense (911, 916) Administrative and General Adminstrative and General Labor (920) Office Supplies and Expenses (921) Outside Services (923) Property Insurance (924) Employee Pension & Benefits (926) Regulatory Expense (928) Misc. General Expense (930) Maint. Of General Plant (935) Total Administrative and General (920, 921, 923, 924, 926, 928, 930, 935) Other Expenses Depreciation Expense (403) Payment in Lieu of Taxes (408) Contribution To City - Roadway Lighting (408) Total Other Expenses (403, 407, 408) TOTAL OPERATING EXPENSES - WITH ALLOCATION %'s OPERATING INCOME (LOSS) - WITH ALLOCATION %'s NONOPERATING REVENUES/(EXPENSES) Merchandise 8 Contract Work, Net Interest Income Misc. Income Bond Service Fees Interest Expense - Bonds Gain (Loss) On Disposal Amortization of Bond Discount and Issuance Costs Amortization --Development Study TOTAL NONOPERATING REVENUES/EXPENSES NET INCOME COGS Gross Profit Gross Margin Operating Margin (%) Net Income (%) of Operating Sales Net Income (%) of Operating Sales (after cap labor) 4% $ 17,153 $ 23,258 $ 21,331 $ 10,361 $ 10,775 $ 11,206 $ 11,654 $ 12,120 3% $ 115,324 $ 152,037 $ 186,095 $ 210,933 $ 153,261 $ 157,859 $ 162,595 $ 167,473 0% $ 10,875 $ 4,658 $ 8,250 $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 5,500 4.5% $ 47,286 $ 49,517 $ 55,682 $ 58,078 $ 60,692 $ 63,423 $ 66,277 $ 69,259 $ 48,247 $ 190,638 $ 229,470 $ 271,358 ! $ 284,873 $ 230,228 $ 237,988 $ 246,026 $ 254,352 0% $ 5,010 $ - $ - 0 % $ 339,637 $ 220,968 $ 360,851 $ 344,647 $ 220,968 $ 360,851 4.5°% $ 467,125 $ 452,383 $ 417,549 3% $ 254,183 $ 248,368 $ 222,750 3% $ 109,766 $ 106,060 $ 80,306 3% $ 91,736 $ 88,869 $ 105,000 2% $ 1,266,411 $ 1,355,579 $ 189,134 3°% $ 24,305 $ 23,322 $ 30,000 3% $ 87,491 $ 67,948 $ 119,636 3% $ 63,752 $ 46,508 $ 46,850 $ 2,364,769 $ 2,389,037 $ 1,211,225 0% $ 2,744,769 $ 2,816,301 $ 2,700,000 0% $ 1,123,897 $ 384,391 $ 754,469 0% $ - $ 146,739 $ 144,535 $ 3,868,666 $ 3,347,431 $ 3,599,004 $ 27,106,844 $ 27,169,322 $ 27,561,340 $ (1,033,546) $ (367,256) $ (1,029,082) $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 357,201 $ 439,059 $ 458,817 $ 479,464 $ 501,040 $ 523,587 $ 322,664 $ 247,343 $ 254,763 $ 262,406 $ 270,278 $ 110,306 $ 83,615 $ 86,123 $ 88,707 $ 91,368 $ 88,200 $ 90,846 $ 93,571 $ 96,378 $ 99,269 $ 193,205 $ 197,069 $ 201,010 $ 205,030 $ 209,131 $ 30,000 $ 30,900 $ 31,827 $ 32,782 $ 33,765 $ 102,836 $ 105,921 $ 109,099 $ 112,372 $ 115,743 $ 46,842 $ 48,247 $ 49,694 $ 51,185 $ 52,721 $ 1,333,112 $ 1,262,758 $ 1,305,551 $ 1,349,900 $ 1,395,862 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 681,816 $ 681,816 $ 681,816 $ 681,816 $ 681,816 $ 147,384 $ 147,384 $ 147,384 $ 147,384 $ 147,384 $ 3,629,200 $ 3,629,200 $ 3,629,200 $ 3,629,200 $ 3,629,200 $ 27,994,844 $ 28,437,589 $ 29,073,190 $ 29,501,910 $ 29,495,150 $ (1,309,102) $ (1,464,347) $ (1,812,698) $ (2,083,168) $ (2,058,908) 0% $ 41,724 $ (49,243) $ - $ _ $ $ _ $ 0% $ 14,860 $ 15,978 $ 57,500 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 0% $ 35,408 $ 129,966 $ - $ - $ _ $ - $ _ $ - 0% $ (450) $ - $ (2,400) $ (2,400) $ (2,400) $ (2,400) $ (2,400) $ (2,400' Actual $ (40,082) $ (35,196) $ (30,613) $ (25,488) $ (30,613) $ (25,488) $ (20,238) $ (28,525; 0% $ 23,159 $ $ $ $ $ $ $ 0% $ - $ $ $ $ $ $ $ Actual $ (525,943) $ (262,972) $ $ $ $ $ $ - $ (451,324) $ (201,466) $ 24,488 $ 22,113 $ 16,987 $ 22,112 $ 27,362 $ 19,075 $ (1,484,869) $ (568,722) $ (1,004,594)) $ (1,286,989) $ (1,447,360) $ (1,790,586) $ (2,055,806) $ (2,039,833) $ 19,475,027 $ 20,088,271 $ 20,637,802 $ 20,906,153 $ 21,409,215 $ 21,926,750 $ 22,232,618 $ 22,098,021 $ 6,598,271 $ 6,713,795 $ 5,894,456 $ 5,779,589 $ 5,564,027 $ 5,333,742 $ 5,186,124 $ 5,338,221 25.3% 25.0% 22.2% 21.7% 20.6% 19.6% 18.9% 19.5% -4.0% -1.4% -3.9% -4.9% -5.4% -6.6% -7.6% -7.5% -5.7% -2.1% -3.8% -4.8% -5.4% -6.6% -7.5% -7.4% -2.0% -2.5% -3.8% -4.8% -4.8% Actuals Adopted #'s I Preliminary #'s 1 4 Year Electric Division Budget Forecast Assumptions I 2014 Actual 1 2015 Actual 2016 Budget 1 2017 Budget 1 2018 Budget 1 2019 Budget 1 2020 Budget 1 2021 Budget NET INCOME Net Income $ (1,286,989) $ (1,447,360) $ (1,790,586) $ (2,055,806) $ (2,039,833) PCA $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Cap. Labor - Energy Services $ - $ - $ - $ - $ - Cap.Labor- Production $ 32,000 $ 55,000 $ 15,000 $ 10,000 $ - Cap. Labor -Distribution $ 158,500 $ 177,500 $ 177,500 $ 177,500 $ 177,500 Net Income $ (546,489) $ (664,860) $ (1,048,086) $ (1,318,306) $ (1,312,333) CASH FLOW STATEMENT Net Income $ (1,286,989) $ (1,447,360) $ (1,790,586) $ (2,055,806) $ (2,039,833) PCA $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Depreciation $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Future Cap Exp $ (880,000) $ (1,042,100) $ (548,212) $ (527,054) $ (405,102) 2003B Principal $ (125,000) $ (125,000) $ (125,000) $ (125,000) $ (90,000) Electric Cash Flow $ 1,058,011 $ 735,540 $ 886,202 $ 642,140 $ 815,065 As necessary $ 116,000 $ 116,000 $ 116,000 $ 116,000 $ 116,000 OPERATING REVENUES Sales - Natural Gas -Retail Contract Sale to Large Customer (Inc. 3M & HTI transport) New Ulm Transportation Transportation -Electric Division TOTAL OPERATING REVENUES OPERATING EXPENSES Purchased Gas Purchased Gas for Retail (807) 1% $ 5,385,632 $ 3,545,049 $ 4,161,898 Contract Gas for Large Customer 1% $ 5,074,637 $ 2,443,772 $ 3,052,857 Total Purchased Gas $ 10,460,268 $ 5,988,821 $ 7,214,755 Transmission Gas Transmission Operations (856) Actuals Gas Transmission Maintenance (863) I Adopted #'s I Preliminary #'s I 4 Year Gas Division Budget Forecast Assumptions I 2014 Actual I 2015 Actual I 2016 Budget ' 2017 Budget 12018 Budget 12019 Budget 12020 Budget' 2021 Budget 0% $ 8,559,893 $ 6,812,881 $ 8,612,023 $ 8,357,151 $ 8,357,151 $ 8,357,151 $ 8,357,151 $ 8,357,151 0% $ 6,066,290 $ 3,110,620 $ 3,578,643 $ 3,200,440 $ 3,200,440 $ 3,200,440 $ 3,200,440 $ 3,200,440 Actual $ 808,575 $ 776,164 $ 730,636 $ 734,878 $ 739,450 $ 742,809 $ 748,262 $ 765,380 Actual $ 700,000 $ 641,833 $ 647,166 $ 651,700 $ 651,700 $ 656,366 $ 659,783 $ 665,283 $ 16,134,757 $ 11,341,498 $ 13,568,468, $ 12,944,169 $ 12,948,741 $ 12,956,766 $ 12,965,636 $ 12,988,254 Purchased Gas Purchased Gas for Retail (807) 1% $ 5,385,632 $ 3,545,049 $ 4,161,898 Contract Gas for Large Customer 1% $ 5,074,637 $ 2,443,772 $ 3,052,857 Total Purchased Gas $ 10,460,268 $ 5,988,821 $ 7,214,755 Transmission Gas Transmission Operations (856) 4% 9 Gas Transmission Maintenance (863) 0% g Total Transmission (856, 863) ! Distribution Operations $ 159,849 $ Supervision and Engineering (870) 4% $ Mains and Services (874) 4% $ Meters (878) 4% $ Misc. (880) 4.5% $ Total Distribution Operation (870, 874, 878, 880) $ Distribution Maintenance $ 55,594 Lines -Services and Mains (892) 4% $ Meters and House Regulators (893) 4.5% $ Maintenance of Other Plant (895) 4.5% $ Total Distribution Maintenance (892, 893, 895) $ Customer Service and Collection $ 22,511 Meter Reading (902) 4.5% $ Collection Expense (903) 3% $ Bad Debt Write offs (904) 0% $ Customer Services (906) 4.5% $ Total Customer Service and Collection (902, 903, 904, 906) $ Sales Expense $ 513,515 Supervison (911) 0% $ Misc. Selling Expense (916) 0% $ Total Sales Expense (911, 916) $ Administrative and General Adminstrative and General Labor (920) 5% $ Office Supplies and Expenses (921) 30/ $ Outside Services (923) 3% $ Property Insurance (924) 3% $ Employee Pension & Benefits (926) 2% $ Regulatory Expense (928) 3% $ Misc. General Expense (930) 3% $ Maint. Of General Plant (935) 3% $ Total Administrative and General (920, 921, 923, 924, 926, 928, 930, 935) $ 106,984 $ 115,115 $ 163,760 23,535 $ 4,337 $ 10,171 130,520 $ 119,452 $ 173,931 145,915 $ 166,328 $ 104,425 $ 87,715 $ 2,921 $ 9,497 $ 184,837 $ 159,849 $ 438,098 $ 423,389 $ 99,918 $ 156,591 $ 22,554 $ 9,322 $ 53,973 $ 49,641 $ 176,445 $ 215,554 $ 14,034 $ 19,029 $ 94,356 $ 124,394 $ 8,898 $ 3,811 $ 38,689 $ 40,514 $ 155,976 $ 187,748 $ 1,670 $ - $ 113,212 $ 73,656 $ 114,882 $ 73,656 $ 358,088 109,692 835 131,631 600,246 148,837 24,228 188,250 361,315 17,453 152,259 6,750 45,558 222,020 179,806 179,806 155,708 $ 155,341 $ 139,183 84,728 $ 82,789 $ 74,250 36,589 $ 35,353 $ 26,769 75,057 $ 72,711 $ 70,000 422,137 $ 451,860 $ 63,045 19,886 $ 19,082 $ 20,000 71,584 $ 55,594 $ 79,758 52,160 $ 38,052 $ 31,233 917,849 $ 910,782 $ 504,237 $ 4,102,910 $ 4,143,939 $ 4,185,378 $ 4,227,232 $ 4,269,504 $ 2,679,314 $ 2,706,107 $ 2,733,168 $ 2,760,500 $ 2,788,105 $ 6,782,224 $ 6,850,046 $ 6,918,546 $ 6,987,732 $ 7,057,609 $ 167,256 $ 173,946 $ 180,904 $ 188,140 $ 195,666 $ 10,241 $ 10,241 $ 10,241 $ 10,241 $ 10,241 $ 177,497 $ 184,187 $ 191,145 $ 198,381 $ 205,907 $ 367,205 $ 381,893 $ 397,169 $ 413,056 $ 429,578 $ 112,864 $ 117,379 $ 122,074 $ 126,957 $ 132,035 $ 871 $ 906 $ 942 $ 980 $ 1,019 $ 137,054 $ 143,221 $ 149,666 $ 156,401 $ 163,439 $ 617,994 $ 643,399 $ 669,851 $ 697,394 $ 726,071 $ 159,657 $ 166,043 $ 172,685 $ 179,592 $ 186,776 $ 25,251 $ 26,387 $ 27,574 $ 28,815 $ 30,112 $ 195,159 $ 203,941 $ 213,118 $ 222,708 $ 232,730 $ 380,067 $ 396,371 $ 413,377 $ 431,115 $ 449,618 $ 8,477 $ 8,859 $ 9,258 $ 9,675 $ 10,110 $ 172,582 $ 125,553 $ 129,320 $ 133,200 $ 137,196 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 47,519 $ 49,657 $ 51,892 $ 54,227 $ 56,667 $ 233,078 $ 188,569 $ 194,970 $ 201,602 $ 208,473 $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,511 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 183,710 $ 146,353 $ 153,671 $ 161,355 $ 169,423 $ 177,894 $ 107,555 $ 82,339 $ 84,809 $ 87,353 $ 89,974 $ 36,769 $ 27,872 $ 28,708 $ 29,569 $ 30,456 $ 58,800 $ 60,564 $ 62,381 $ 64,252 $ 66,180 $ 64,402 $ 65,690 $ 67,004 $ 68,344 $ 69,711 $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,511 $ 68,558 $ 70,614 $ 72,732 $ 74,914 $ 77,161 $ 31,228 $ 32,165 $ 33,130 $ 34,124 $ 35,148 $ 533,663 $ 513,515 $ 531,337 $ 549,834 $ 569,035 Actuals Assumptions 1 2014 Actual 1 2015 Actual Other Expenses 1 $ 367,131 $ 370,803 $ 374,511 Depreciation Expense (403) 0% $ 1,002,804 $ 1,008,133 $ Payment in Lieu of Taxes (408) 1 % $ 605,176 $ 206,980 $ Total Other Expenses (403, 408) $ 1,607,980 $ 1,215,113 $ TOTAL OPERATING EXPENSES - WITH ALLOCATION Ws $ 14,002,017 $ 9,134,516 $ OPERATING INCOME (LOSS) - WITH ALLOCATION %'s $ 2,132,740 $ 2,206,982 $ NONOPERATING REVENUES/(EXPENSES) 69,000 $ 45,000 $ 41,500 $ 38,500 Merchandise & Contract Work, Net 0% $ 31,269 $ 56,008 $ Interest Income 0% $ 14,860 $ 15,978 $ Misc. Income 0% $ 5,235 $ 28,316 $ Bond Premium 0% $ 185,608 $ 185,608 $ Misc. Expense 0% $ - $ - $ Interest Expense - Bonds Actual $ (864,000) $ (821,833) $ Interest Expense - Customer Deposits 0% $ (434) $ (96) $ Gain (Loss) On Disposal 0% $ 22,100 $ - $ Amortization of Bond Discount and Issuance Costs 0% $ - $ $ Amortization -Development Study 0% $ - $ $ TOTAL NONOPERATING REVENUES/EXPENSES $ (605,361) $ (536,019) $ NET INCOME $ 1,527,379 $ 1,670,963 $ COGS Gross Profit Gross Margin Operating Margin (%) Net Income (%) of Operating Sales Net Income (%) of Operating Sales (after cap labor) Adopted #'s I Preliminary #'s 4 Year Gas Division Budget Forecast 2016 Budget ' 2017 Budget 12018 Budget 12019 Budget 12020 Budget 12021 Budget 1,056,000 1 $ 1,008,000 $ 1,008,000 $ 1,008,000 $ 1,008,000 $ 1,008,000 406,252 1 $ 367,131 $ 370,803 $ 374,511 $ 378,256 $ 382,039 1,462,252 $ 1,375,131 $ 1,378,803 $ 1,382,511 $ 1,386,256 $ 1,390,039 10,718,563 $ 1 10,283,364 $ 10,338,600 $ 10,485,447 $ 10,636,024 $ 10,790,462 2,849,906 $ 2,660,805 $ 2,610,141 $ 2,471,319 $ 2,329,612 $ 2,197,792 27,000 32,500 185,608 (781,500) (1,000) (537,392) 2,312,514 $ 10, 590, 788 $ 6,108, 273 $ 7,388,686 $ $ 5,543,970 $ 5,233,225 $ 6,179,782 $ 34% 46% 46% 13% 19% 21% 9% 15% 17% 17% Net Income $ 16% Capitalized Labor - Natural Gas $ NET INCOME Net Income $ Net Income Depreciation HUC Cap Expenditures Cap Expenditures Reimbursed 2012A Principal Gas Cash Flow 33,000 $ 33,000 $ 33,000 $ 33,000 $ 33,000 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 185,608 $ 185,608 $ 185,608 $ 185,608 $ 185,608 (735,100) $ (674,100) $ (609,350) $ (540,850) $ (482,650) (100) $ (100) $ (100) $ (100) $ (100) (466,592) $ (405,592) $ (340,842) $ (272,342) $ (214,142) 2,194,213 $ 2,204,549 $ 2,130,477 $ 2,057,270 $ 1,983,650 6,959,721 $ 7,034,233 $ 7,109,691 $ 7,186,113 $ 7,263,516 5,984,448 $ 5,914,508 $ 5,847,075 $ 5,779,523 $ 5,724,738 46% 46% 45% 45% 44% 21% 20% 19% 18% 17% 17% 17% 16% 16% 15% 17% 18% 17% 16% 16% NET INCOME 2,194,213 $ 2,204,549 $ 2,130,477 $ 2,057,270 $ 1,983,650 67,000 $ 69,000 $ 45,000 $ 41,500 $ 38,500 2,261,213 $ 2,273,549 $ 2,175,477 $ 2,098,770 $ 2,022,150 CASH FLOW STATEMENT $ 2,194,213 $ 2,204,549 $ 2,130,477 $ 2,057,270 $ 1,983,650 $ 1,008,000 $ 1,008,000 $ 1,008,000 $ 1,008,000 $ 1,008,000 $ (1,350,000) $ (6,402,080) $ (200,029) $ (154,686) $ (70,000) $ 215,000 $ 320,000 $ - $ - $ - $ (1,220,000) $ (1,295,000) $ (1,370,000) $ (1,455,000) $ (1,565,000) $ 847,213 $ (4,164,531) $ 1,568,448 $ 1,455,584 $ 1,356,650 As necessary $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 85,000 COMBINED RESERVES ELECTRIC CASH BALANCE GAS CASH BALANCE COMBINED CASH BALANCE RESTRICTED RESERVES 1 YR (P&I) OPERATING RESERVES NOTES $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 Bond Covenants Operating Cash (min. 90 days) 5 YEAR PROJECTED YEAR-END CASH BALANCE/RESERVES 8,834,604 Aug -16 2017 2018 2019 2020 2021 $ 7,090,785 $ 8,148,796 $ 8,884,436 $ 9,770,638 $ 10,412,778 $ 11,227,843 $ 10,670,599 $ 11,517,812 $ 7,353,281 $ 8,921,729 $ 10,377,313 $ 11,733,963 $ 17,761,384 $ 19,666,608 $ 16,237,717 $ 18,692,367 $ 20,790,091 $ 22,961,806 NOTES $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 Bond Covenants Operating Cash (min. 90 days) $ 8,834,604 $ 8,808,299 $ 8,918,826 $ 9,096,969 $ 9,223,356 $ 9,247,797 Crt YE reserve, subsequent yrs bud Catastrophic $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Deductible Rate Stabalization (min.) $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 Min. thresholds PILOT $ 1,305,256 $ 1,196,331 $ 1,249,769 $ 1,236,822 $ 1,244,854 $ 1,252,974 2.75% & Street Lighting CAPITAL RESERVES Fleet $ 950,000 $ 950,000 $ 950,000 $ 950,000 $ 950,000 $ 950,000 5 year CIP (Annual Funding $190K) Infrastructure (on-going maint.) $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 5 year CIP (Annual Funding $500K) Infrastructure (large projects.) $ - $ - $ - $ - $ - $ - Funding Options??? TOTAL RESERVES $ 16,878,554 $ 16,743,324 $ 16,907,289 $ 17,072,485 $ 17,206,904 $ 17,239,465 EXCESS/(DEFICIT) CASH BALANCE $ 882,830 $ 2,923,284 $ (669,572) $ 1,619,882 $ 3,583,187 $ 5,722,341 5 YEAR PROJECTED YEAR-END CASH BALANCE/RESERVES ELECTRIC RESERVES Aug -16 2017 2018 2019 2020 2021 NOTES ELECTRIC CASH BALANCE $ 7,090,785 $ 8,148,796 $ 8,884,436 $ 9,770,638 $ 10,412,778 $ 11,227,843 OPERATING RESERVES Operating Cash (min. 90 days) $ 6,223,588 $ 6,305,683 $ 6,417,651 $ 6,575,270 $ 6,681,137 $ 6,681,519 Crt YE reserve, subsequent yrs bud Catastrophic $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Deductible Rate Stabalization (min.) $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Min. thresholds PILOT $ 899,004 $ 829,200 $ 863,800 $ 855,384 $ 860,605 $ 865,883 2.75% & Street Lighting CAPITAL RESERVES Fleet $ 710,000 $ 710,000 $ 710,000 $ 710,000 $ 710,000 $ 710,000 5 year CIP (Annual Funding $190K) Infrastructure (on-going maint.) $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 5 year CIP (Annual Funding $400K) Infrastructure (large projects.) $ - $ - $ - $ - $ - $ - Funding Options??? TOTAL RESERVES $ 10,632,592 $ 10,644,883 $ 10,791,451 $ 10,940,654 $ 11,051,742 $ 11,057,402 EXCESS/(DEFICIT) CASH BALANCE $ (3,541,807) $ (2,496,087) $ (1,907,015) $ (1,170,016) $ (638,964) $ 170,441 GAS RESERVES GAS CASH BALANCE RESTRICTED RESERVES 1 YR (P&I) OPERATING RESERVES 5 YEAR PROJECTED YEAR-END CASH BALANCE/RESERVES Aug -16 2017 2018 2019 2020 2021 $ 10,670,599 $ 11,517,812 $ 7,353,281 $ 8,921,729 $ 10,377,313 $ 11,733,963 NOTES $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 $ 2,188,694 Bond Covenants Operating Cash (min. 90 days) $ 2,611,016 $ 2,502,616 $ 2,501,175 $ 2,521,699 $ 2,542,219 $ 2,566,278 Crt YE reserve, subsequent yrs bud Catastrophic $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Deductible Rate Stabalization (min.) $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Min. thresholds PILOT $ 406,252 $ 367,131 $ 385,969 $ 381,438 $ 384,249 $ 387,091 2.75% & Street Lighting CAPITAL RESERVES Fleet $ 240,000 $ 240,000 $ 240,000 $ 240,000 $ 240,000 $ 240,000 5 year CIP (Annual Funding $190K) Infrastructure (on-going maint.) $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 5 year CIP (Annual Funding $100K) Infrastructure (large projects.) $ - $ - $ - $ - $ - $ - Funding Options??? TOTAL RESERVES $ 6,245,962 $ 6,098,441 $ 6,115,838 $ 6,131,831 $ 6,155,162 $ 6,182,063 EXCESS/(DEFICIT) CASH BALANCE $ 4,424,637 $ 5,419,371 $ 1,237,443 $ 2,789,898 $ 4,222,151 $ 5,551,900 r Electric Production Capital Projects Brief description for projects 2017 Acct 341 -windows on west end of plant 1 need to be replaced Acct 343 - Acct 344 - Acct 345- Unit #1 batteries due to be replaced (>15yrs). Plant #1 electrical panel update/consolidation. Acct 346- 9/26/2016 Cap -Ex: 2017-2021 Page 1 of 11 Annual Account # Description of Account Number Depreciation Depreciation Expense next five vears 340 Land and Land Rights (Generation Plant) $ - $ - 341 Structures & Improvements (Building and Equipment) $ 118,937.00 $ 594,685.00 342 Fuel Holders, Producers & Accessories $ 11,973.00 $ 59,865.00 343 Prime Movers $ 344 Generators $ 1,022,275.00 $ 5,111,375.00 345 Accessory Electric Equipment $ 46,903.00 $ 234,515.00 346 Misc. Power Plant Equipment $ 28,730.00 $ 143,650.00 Benchmark for Capital Expenditures(to maintain what we have) j $ 1,228,818.00 1 $ 6,144,090.00 Electric Production Capital Expenditure Programming Over/(Under) Account # 2017 1 2018 1 2019 1 2020 1 2021 Totals I Benchmark 340 $ - $ - $ - $ - $ $ $ 341 $ 170,000.00 $ 35,000.00 $ 85,000.00 $ $ $ 290,000.00 $ (304,685.00) 342 $ - $ - $ - $ $ $ - $ (59,865.00) 343 $ - $ 300,000.00 $ - $ $ $ 300,000.00 $ 344 $ 138,000.00 $ 350,000.00 $ 160,000.00 $ 185,000.00 $ $ 833,000.00 $ (4,278,375.00) 345 $ 34,500.00 $ - $ - $ - $ - $ 34,500.00 $ (200,015.00) 346 $ $ - $ - $ - $ $ - $ (143,650.00) Totals 1 $ 342,500.00 1 $ 685,000.00 1 $ 245,000.00 I $ 185,000.00 I $ I $ 1,457,500.00 I $ (4,986,590.00) Production Capital Budget F -Acct rolect ist atena La or ota 340 I 1$ I$ 1$ Plant 1 window replacement - phase 2 $ 150,000.00$ 20,000.00 $ 170,000.00 I 341 Total Account 3411 $ 150,000.00 $ 20,000.00 $ 170,000.00 34:1 1 i I$ 1$ I 1$ ($ 343 Total Account 3431 $ - - - Unit # 8 generator field breaker/voltage control replacement $ 95,000.00 $ 5,000.00 $ 100,000.00 1 Towerwater pump #1 replacement -units 3 & 4 $ 7,000.00 $ 1,000.00 unit # 8 boiler non-retum valve - $ 37,000.00 $ 1,000.00 $ 38,000.00 344 Total Account 344 $ 132,000.00 $ 6,000.00 $ 138,000.00 Plant 1 alarm panel upgrade $ 10,000.00 $ 6,000.001$ 16,000.00 Unit #1 control system batteries $ 8,500.00 $ 8,500.00 Plant #1 electrical panel updates $ 10,000.00 $ - $ 10,000.00 345 Total Account 345 $ 28,500.00 $ 6,000.$ 00 34,500.00 346 1 I I Total Production Capital Budget 2017 $ 310,500.00 1 $ 32,000.00 I $ 342,500.00 Brief description for projects 2017 Acct 341 -windows on west end of plant 1 need to be replaced Acct 343 - Acct 344 - Acct 345- Unit #1 batteries due to be replaced (>15yrs). Plant #1 electrical panel update/consolidation. Acct 346- 9/26/2016 Cap -Ex: 2017-2021 Page 1 of 11 340 1 1$ $ I$ -- - 341 I Roof replacement plant 1 1 $ 30,000.00 1 $ 5,00000 1 $ 35,000.00 342 1 1$ I$ I$ Plant 1 cooling tower piping replacement - phase 2 $ 300,000.00 $ $ 300,000.00 I 1 343 Total Account 343 $ 300,000.00 $ $ 300,000.00 Unit # 8 boiler retube $ 300,000.00 $ 50,000.00 $ 350,000.00 + I I 344 Total Account 344 $ 300,000.00 $ 50,000.00 $ 350,000.00 1 345 1 Total Account 345 $ 345 $ Total Account 345 $ $ !l $ 1 $ 346 1 �$ Total Production Capital Budget 2019 � $ 1$ 1$ 245,000.00 Total Production Capital Budget 2018 $ 630,000.00 1 $ 55,000.00 1 $ 685,000.00 Acct 341 - Brief description for projects 2018 Acct 343 - Acct 344- Acct 44Acct 345 - Acct 346- 340 I I$ I$ -- 1$ -- - 341 I Plant 2 parking lot asphalt replacement 1 $ 80,000.00 1 $ 5,000.00 1 $ 85,000.00 342 $ I$ 1$ 1 343 Total Account 343 $ $ $ _ Unit # 8 hot gas path inspection $ 150,000.00 $ 10,000.00 $ 160,000.00 + I I 344 Total Account 3441 $ 150,000.00 $ 10,000.00 $ 160,000.00 345 Total Account 345 $ $ $ 346 1 !l 1 1 $ Total Production Capital Budget 2019 � $ 230,000.00 1 $ 15,000.00 1$ 245,000.00 Acct 341 - Acct 343 - Acct 344- Acct 44Acct 345 - Acct 346 - Brief description for projects 2019 9/26/2016 Cap -Ex: 2017-2021 Page 2 of 11 340 341 342 343 344 345 346 Acct 341 - Acct 343 - Acct 344 - Acct 345 - Acct 346- 340 341 342 343 344 345 346 Acct 341 - Acct 343 - Acct 344- Acct 44Acct 345 - Acct 346- I$ I$ I$ - I$ - II$ I$ I$ $ $ $ $ $ Total Account 343 $ $ $ Unit # 8 steam turbine inspection/overhaulii $ 175,000.00 $ 10,000.00 $ 185,000.00 Total Account 344 $ 175,000.00 $ 10,000.00 $ 185,000.00 - I$ �$ I$ - 1 1 Total Account 345 $ $ $ �$ 1$ 1$ - Tota/ Production Capital Budget 2020 j $ 175,000.00 I $ 10,000.00 I $ 185,000.00 Brief description for projects 2020 1$ �$ I$ $ Total Account 343 $ I$ Total Account 344 $ Total Account 345 $ 1 �$ Total Production Capital Budget 2021 $ Brief description for projects 2021 i$ I$ I$ - I$ I$ $ $ $ $ $ $ $ $ I$ - I$ �$ I$ - 9/26/2016 Cap -Ex: 2017-2021 Page 3 of 11 Electric Transmission Capital Projects 350 I !Electric Transmission Capital Expenditure ProgrammingTotals Annual Depreciation 352 1 Benchmark Depreciation Expense (next five I Account # Descnotion of Account Number Exoense vears) 350 Land and Land Rights $ - $ - 352 Structures and Improvements $ 17,785.96 $ 88,929.80 353 Station Equipment $ 114,611.00 $ 573,055.00 354 Towers and Fixtures $ 31,979.93 $ 159,899.65 355 Poles and Fixtures $ 35,741.00 $ 178,705.00 356 Overhead Conductor $ 14,857.45 $ 74,287.25 357 Underground Conduit & Manholes $ 3,022.58 $ 15,112.90 358 Underground Conductor $ 2,044.83 $ 10,224.15 $ 60,000.00 Benchmark for Capital Expenditures(to maintain what we have) 1 $ 220,042.75 1 $ 1,100,213.75 350 I !Electric Transmission Capital Expenditure ProgrammingTotals I $ - 1 352 1 Benchmark Account# 1 2017 1 2018 I 2019 I 2020 I 2021 1 I 350 $ $ $ $ $ I $ - $ $ 352 $ $ $ $ $ 1$ - $ $ (88,929.80) 353 $ $ $ $ $ 75,000.00 $ 75,000.00 $ (498,055.00) 354 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ $ 60,000.00 $ (99,899.65) 355 $ - $ - $ - $ - $ $ - $ (178,705.00) 356 $ $ $ $ $ $ $ (74,287.25) 357 $ $ $ $ $ $ $ (15,112.90) 3581$ $ $ - $ $ $ $ (10,224.15) Total 1 $ 15,000.00 1 $ 15,000.00 1 $ 15,000.00 1 $ 15,000.00 1 $ 75,000.00 1 $ 135,000.00 1 $ (965,213.75) 350 I I $ I $ - 1 352 1 1 $ I $ I $ 353 I 1 $ I $ 1$ - 354 1 Pole Repair or Replacement 1 $ 15,000.00 1 $ 1 $ 15,000.00 355 1 I $ - I $ I $ - 356 1 i $ 1 $ 1 $ - 357 1 I$ I$ 1$ - 358 1 I$ - I$ I$ - Total Electric 'Transmission Capital Budqet 2014 1 $ 15,000.00 1 $ 1 $ 15,000.U0 350 1 I $ I $ I $ 352 1 1 $ I $ I $ 353 1 1 $ I $ I $ - 354 1 Pole Repair Replacement 1 $ 15,000.00 I $ I $ 15,000.00 355 1 I $ - I $ 1 $ - 356 1 I$ I$ I$ 357 1 I$ I$ I$ - 358 1 1$ - I$ 1$ - Total Electric Transmission Capital Budget 2015 1 $ 15,000.00 1 $ 1 $ 15,000.00 350 1 352 1 353 1 Total 353 354 1 Pole Repair Replacment 355 1 356 1 357 1 358 1 I Total Electric Transmission Capital Budget 2016 1$ I$ I$ - 1$ I$ 1$ 1$ 1$ 1$ 1 $ 15,000.001 $ - 1 $ 15,00U.00 I$ I$ I$ 1 $ - I $ I$ - I$ I$ I$ i$ 1$ I$ - 1 $ 15,000.00 1 $ 1 $ 15,000.00 9/26/2016 Cap -Ex: 2017-2021 Page 4 of 11 350 1 I$ $ I$ - 352 I $ 1 $ 1$ 1$ 1$ Engineering for transmission loop HTII I 75,000.001 j I I 353 Total 353 $ $ $ 354 I Pole Repair Replacment i $ 15,000.00 1 $ 1 $ 15,000.00 355 1 I$ 1$ I$ 356 1 $ I $ I $ 357 1 I$ I$ 1$ 358 1 �$ I$ - I$ Total Electric Transmission Capital Budget 201 $ 15,000.00 I $ 1 $ 15,000.00 350 I I $ 1 $ I $ - 352 1 i$ 1$ 1$ Engineering for transmission loop HTII $ 75,000.001 j $ 75,000.00 - I 353 Total 353 $ 75,000.00 $ $ 75,000.00 354 I Pole Repair Replacment $ _ I $ I $ _ 355 ( I $ I $ I $ 356 1 i$ I$ I$ 357 1 i$ 1$ 1$ - 358 1 is - I$ I$ - Total Electric Transmission Capital Budget 201 1 $ 75,000.00 I $ 1 $ 75,000.00 9/26/2016 Cap -Ex: 2017-2021 Page 5 of 11 Electric Distribution Capital Projects 360 1 361 1 Roof Replacment Hutch Sub Station Equipment 362 1 Total Account 362 Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) 364 - Annual Depreciation 366 I Install Duct 1 $ Re -conductor Fdr#17 1 $ Depreciation Expense (next I Hutchinson High School $ New Developments Account # Descrnotion of Account Number Expense five vears) Transformer Replacements 360 Land and Land Rights $ - $ - 1 Meters 361 Structures and Improvements $ 8,257.31 $ 41,286.56 373 1 $ 362 Station Equipment $ 56,710.00 $ 283,550.00 15,000.00 364 Poles, Towers and Fixtures $ 8,604.00 $ 43,020.00 $ $ 365 Overhead Conductor $ 3,486.00 $ 17,430.00 15,000.00 1 $ - 366 Underground Conduit/Manholes $ 18,468.00 $ 92,340.00 $ 30,000.00 1 $ 367 Underground Conductor $ 278,667.00 $ 1,393,335.00 35,000.00 $ 35,000.00 368 Transformers $116,032.00 $ 580,160.00 $ 30,000.00 $ 369 Services $ - $ - 10,000.00 1 $ 55,000.00 370 Meters $ 58,098.00 $ 290,490.00 $ 50,000.00 $ 371 Installation on Customer Premises (Security Lights) $ 433.57 $ 2,167.85 235,000.00 $ 25,000.00 373 Street Liqhtinq $ 1,260.00 $ 6,300.00 $ 40,000.00 $ Benchmark for Capital Expenditures(to maintain what we have) $550,015.88 1 $ 2,750,079.41 50,000.00 $ - is Electric Distribution Capital Expenditure Programminq $ - $ - Over/(Under) Account # 2017 1 2018 1 2019 1 2020 I 2021 I Total $ Benchmark 360 $ - $ $ $ - $ - $ - $ - 361 $ 10,000.00 $ - $ - $ - $ - $ 10,000.00 $ (31,286.56) 362 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 40,000.00 $ (243,550.00) 364 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 60,000.00 $ 16,980.00 365 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 10,000.00 $ (7,430.00) 366 $ 95,000.00 $ 80,000.00 $ 80,000.00 $ 80,000.00 $ 80,000.00 $ 335,000.00 $ 242,660.00 367 $ 235,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 145,000.00 $ 985,000.00 $ (408,335.00) 368 $ 126,000.00 $ 100,000.00 $ 100,000.00 $100,000.00 $ 100,000.00 $ 426,000.00 $ (154,160.00) 369 $ - $ - $ - $ - $ $ - $ 370 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 120,000.00 $ (170,490.00) 371 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 4,000.00 $ 1,832.15 373 $ - $ - $ - $ - $ - $ - $ (6,300.00) Total 1 $ 524,500.00 1 $ 488,500.00 1 $ 488,500.00 1 $488,500.00 1 $ 383,500.00 1 $ 1,990,000.00 1 $ (760,079.41) 360 1 361 1 Roof Replacment Hutch Sub Station Equipment 362 1 Total Account 362 Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) 364 - 365 ( Right Of wav Clearinq 366 I Install Duct 1 $ Re -conductor Fdr#17 1 $ Re -conductor Fdr#15 1 $ Hutchinson High School $ New Developments 367 Total account 367 Hutchinson High School Transformer Replacements Transformer New Developments 368 Total Account 368 369 1 Meters 370 Total Account 370 371 1 Installation on Customer Premises (Security Liqhts) 373 1 $ Total Electric Distribution Capital Budget 2017 1$ - 1$ - 1$ 1 $ 10,000.00 1 $ - 1 $ 10,000.00 $ 10,000.00 $ 10,000.00 Is $ 10.000.00 $ $ 10,000.00 15,000.00 $ $ 10.000-001 $ 5'000.001$ $ 15,000.00 1 $ - 1 $ 2,500.001$ 2,500.00 $ 30,000.00 1 $ 65,000.00 1 $ 95,000.00 $ 35,000.00 $ 35,000.00 $ 70,000.00 $ 30,000.00 $ 30,000.00 $ 60,000.00 $ 45,000.001 $ 10,000.00 1 $ 55,000.00 $ 50,000.00 $ $ 50,000.00 $ 160,000.00 $ 75,000.00 $ 235,000.00 $ 25,000.00 $ 1,000.00 $ 26,000.00 $ 40,000.00 $ 10,000.00 $ 50,000.00 $ 50,000.00 $ - is 50,000.00 $ - $ - $ - $ 115,000.00 $ 11,000.00 $ 126,000.00 Is - 1$ - 1$ - $ 30,000.00 $ $ 30,000.00 $ 30,000.00 $ - $ 30,000.00 $ 1.000.001 $ 1 $ 1,000.00 Is - 1$ 1$ - J $ 366,000.00 1 $ 158,500.00 1 $ 524,500.00 Potential 9/26/2016 Cap -Ex: 2017-2021 Page 6 of 11 vcct ; I Project List I Material I Labor Total 360 I I$ I$ I$ 361 I I $ I $ Station Equipment $ 10,000.00 $ 10,000.00 362 Total Account 362 $ 10„000.00 $ $ 10,000.00 Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) j $ 10,000.00 $ 5,000.00 $ 15,000.00 I I 364 $ 10,000.00 $ 5,000.00 $ 15,000.00 365 I Right of way Clearing 1 $ - 1 $ 2,500.001$ 2,500.00 366 I Install Duct $ 15,000.00 1 $ 65,000.00 1 $ 80,000.00 Energy Park $ 75,000.00 $ 25,000.00 $ 100,000.00 Reconductor Fdr#15 and #14 $ 30,000.00 $ 70,000.00 $ 100,000.00 New Developments $ 50,000.00 1 $ - Is$ 50,000.00 367 Total account 367 $ 155,000.00 $ 95,000.00 $ 250,000.00 Transformer Replacements $ 40,000.00 $ 10,000.00 $ 50,000.00 Transformer New Developments $ 50,000.00 $ - $ 50,000.00 368 Total Account 368 $ 90.000.00 $ 10.000.00 $ 100,000.00 369 1 Is - I$ - I$ - Meters $ 30,000.00 $ - $ 30,000.00 370 Total Account 370 $ 30,000.00 $ - $ 30,000.00 371 I Installation on Customer Premises (Security Liqhts) $ 1,000.00 I $ - I $ 1,000.00 373 1 Is - $ - 1$ - Total Electric Distribution Capital Budget 2018 $ 311,000.00 1 $ 177,500.00 1 $ 488,500.00 DISTRIBUTIONELECTRIC i tcct # Project List I Material Labor Total 360 1 I$ I$ I$ - 361 I i $ - 1$ - Station Equipment j $ 10,000.00 $ - $ 10,000.00 I I 362 Total Account 362 $ 10,000.00 $ $ 10,000.00 Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) j $ 10,000.001 $ 5,000-001$ 15,000.00 364 $ 10,000.00 $ 5,000.00 $ 15,000.00 365 1 Right of way Clearing 1 $ - 1 $ 2,500.001$ 2,500.00 366 ( Install Duct 1 $ 15,000.00 1 $ 65,000.00 1 $ 80,000.00 Frd#19 Loop $ 75,000.00 $ 25,000.00 $ 100,000.00 Feeder # 22 loop $ 30,000.00 $ 70,000.00 $ 100,000.00 $ - $ $ - New Developments $ 50,000.00$ $ 50,000.00 367 Total account 367 $ 155,000.00 $ 95,000.00 $ 250,000.00 Transformer Replacements $ 40,000.00 $ 10,000.00 $ 50,000.00 Transformer New Developments $ 50,000.00 $ - $ 50,000.00 368 Total Account 368 $ 90,000.00 $ 10,000.00 $ 100,000.00 369 Is $ - $ - Meters $ 30,000.00 $ $ 30,000.00 370 Total Account 370 $ 30,000.00 $ - $ 30,000.00 371 I Installation on Customer Premises (Security Liqhts) j $ 1.000.00 1 $ - I $ 1,000.00 373 1 Is - I$ - I$ - Tota/ Electric Distribution Capita/ Budqet 2019 1 $ 311,000.00 I $ 177,500.00 I $ 488,500.00 9/26/2016 Cap -Ex: 2017-2021 Page 7 of 11 360 I I$ I$ i$ Station Equipment 361 I I$ I $ 1 $ 365 Station Equipment $ 10,000_00 $ $ 10,000.00 367 Total account 367 I$ Transformer Replacements ($ Transformer New Developments 362 Total Account 362 $ 10,000 00 $ $ 10,000.00 370 Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) + $ 10,000.00 $ 5,00000 $ 15,000.00 364 10,000.00 $ 10,000.00 $ 5,000.00 $ 15,000.00 365 I Right of way Clearing 1 $ - 1 $ 2,500.00 I $ 2,500.00 366 ( Install Duct j $ 15,000.00 I $ 65,000.00 I $ 80,000.00 $ Frd#19 Loop $ 75,000.00 $ 25,000.00 $ 100,000.00 $ Feeder # 22 loop $ 30,000.00 $ 70,000.00 $ 100,000.00 $ New Developments $ 50,000.00 $ - Is$ 50,000.00 367 Total account 367 $ 155,000.00 $ 95„000.00 $ 250,000.00 $ Transformer Replacements $ 40,000.00 $ 10,000.00 $ 50,000.00 $ Transformer New Developments $ 50,000.00 $$ $ 1 50,000.00 $ - $ - Is - 368 Total Account 368 $ 90.000.00 $ 10,000.00 $ 100,000.00 369 I Is - I$ - I$ - $ Meters $ 30,000.00 $ - $ 30,000.00 1 1 370 Total Account 370 $ 30,000.00 $ - $ 30,000.00 371 I Installation on Customer Premises (Security Lights) j $ 1,000.00 I $ - I $ 1,000.00 373 - $ - I$ I$ - $ Total Electric Distribution Capital Budqet 2020 j $ 311,000.00 I $ 177,500.00 I $ 488,500.00 360 1 361 - 1$ Station Equipment 362 Total Account 362 I$ I Poles, Towers and Fixtures(change out poles N. Hwy 15 Fdr 12A) 364 365 I Right of way Clearing 366 ( Install Duct $ New Developments 367 Total account 367 I$ Transformer Replacements ($ Transformer New Developments 368 Total Account 368 369 1 $ Meters 370 Total Account 370 371 I Installation on Customer Premises (Security Lights) 373 I Total Electric Distribution Capital Budget 2021 �$ I$ - 1$ - I$ I$ $ 10,000.00 $ $ 10,000.00 $ I$ ($ $ 10,000.00 $ - $ 10,000.00 $ 10,000.001 $ 5,000.001$ 15,000.00 $ 10,000.00 $ 5„000.00 1 $ 15,000.00 $ - I $ 1500.00 1 $ 2,500.00 1 $ 15,000.001 $ 65,000.00 1 $ 80,000.00 $ - $ 25,000.00 $ 25,000.00 $ - $ 70,000.00 $ 70,000.00 $ 50,000.00 $ - 1$$ 50,000.00 $ 50.000.00 $ 95.000.00 $ 145,000.00 $ 40,000.00 $ 10,000.00 $ 50,000.00 $ 50,000.00 $ - $ 1 50,000.00 $ 90,000.00 $ 10,000.00 $ 100,000.00 j$ - I$ - I$ - $ 30,000.00 $ - $ 30,000.00 1 $ 30,000.00 $ $ 30,000.00 1 $ 11000.001 $ - I $ 1,000.00 �$ - 1$ - I$ - $ 206,000.00 1 $ 177,500.00 I $ 383,500.00 Potential 9/26/2016 Cap -Ex: 2017-2021 Page 8 of 11 General Plant Capital Projects 389 General Plant Capital Annual Depreciation 1$ 390 Depreciation Expense (next five Account # Description of Account Number Expense vears) 389 Land and Land Rights (Center) $ - $ - 390 Structures and Improvements(Buildings--Industnal Park) $ 108,026.00 $ 540,130.00 391 Office Furniture and Equipment $ 91,675.00 $ 458,375.00 392 Transportation Equipment $ 105,577.00 $ 527,885.00 393 Stores Equipment $ 5,571.00 $ 27,855.00 394 Tools, Shop & Garage Equipment $ 50,484.00 $ 252,420.00 395 Laboratory Equipment (Meter Test Room) $ 8,587.00 $ 42,935.00 396 Power Operated Equipment $ 74,447.00 $ 372,235.00 397 Communication Equipment (Radio) $ 17,064.00 $ 85,320.00 399 Other Tangible Property $ - $ _ Benchmark for Capital Expenditures(to maintain what we have) $ 461,431.00 $ 2,307,155.00 389 General Plant Capital Expenditure Programming I $ 1$ 390 I New Roof over Office Area Over/(Under) Account # 2017 1 2018 1 2019 1 2020 I 2021 I Totals Benchmark 389 $ $ $ $ $ $ - $ 390 $ $ $ $ $ $ $ (540,130.00) 391 $ $ $ $ $ $ $ (458,375.00) 392 $ 305,000.00 $ 202,100.00 $ 108,212.00 $ 142,054.00 $ 225,102.00 $ 982,468.00 $ 454,583.00 393 $ - $ - $ - $ - $ - $ - $ (27,855.00) 394 $ $ $ $ $ $ $ (252,420.00) 395 $ $ $ $ $ $ $ (42,935.00) 396 $ $ $ $ $ $ $ (372,235.00) 397 $ $ $ $ $ $ $ (85,320.00) 399 $ $ $ $ $ $ 397 1 Total I $ 305,000.00 1 $ 202,100.00 1 $ 108,212.00 1 $ 142,054.00 I $ 225,102.00 1 $ 982,468.00 1 $ (1,324,687.00) 389 I $ I $ 1$ 390 I New Roof over Office Area 1 1 1 I I I 391 Total Account 3911 $ $ _ Vactron w/heater $ 60,000.00 $ 60,000.00 F550 Dump Truck $ 30,000.00 $ 30,000.00 Dodge Dakota $ 25,000.00 $ 25,000.00 F550 Super Duty Bucket Truck $ 130,000.00 $ 130,000.00 Tractor Backhoe $ 60,000.00 $ 60,000.00 392 Total Account 392 $ 305,000.00 $ 305,000.00 IRacks and Bins $ 1 $ 1 393 1 Total Account 3931 $ $ Misc. Tools --Gas Division $ $ Misc. Tools --Electric Division 1 $ 1 394 Total Account 394 $ $ 395 396 1 $ N 1 $ 397 1 Radios $ 1 $ 399 1 ! $ I $ Total General Cap/ta/ Budget 20171 $ 305,000.00 I $ 1 $ 305,000.00 9/26/2016 Cap -Ex: 2017-2021 Page 9 of 11 389 390 1 391 I 392 393 I 394 I 395 396 1 397 1 399 1 acct # 389 390 1 391 I 392 1 393 I 394 395 396 397 399 9/26/2016 Cap -Ex: 2017-2021 Page 10 of 11 1$ I I$ I I$ I I$ I I 1 I Total Account 391 $ $ $ $ 2008 Super Duty Bucket Truck (572) $ 130,000.00 $ $ 130,000.00 2007 Metering Van $ 25,750.00 $ $ 25,750.00 2006 Production Dodge Dakota (410) $ 20,600.00 $ $ 20,600.00 2006 Ford F-150 (650) $ 25,750.00 $ 25,750.00 Total Account 392 $ 202,100.00 $ $ 202,100.00 I I Total Account 3931 $ $ 1 $ Misc. Tools --Gas Division $ $I $ $ Misc. Tools --Electric Division $ $ I $ I Total Account 394 $ $ $ $ I$ 1 I$ I$ I I$ Radios $ $ I I $ �$ I I$ Total General Capita/ Budget 20181 $ 202,100.00 1 $ I $ 202,100.00 9/26/2016 Cap -Ex: 2017-2021 Page 10 of 11 I$ I I$ I$ I I I I Total Account 3911 $ $ - 2008 Silverado (542) $ 26,523.00 $ 26,523.00 2008 Super Duty Service Truck (573) $ 53,045.00 $ 53,045.00 2008 Tahoe (827) $ 28,644.00 $ 28,644.00 Total Account 392 $ 108.212.00 $ 108,212.00 1 1 Total Account 393 $ $ Misc. Tools --Gas Division $I $ - Misc. Tools --Electric Division $ $ I Total Account 394 $ $ _ 1$ I 1$ - I$ I I$ Radios 1 $ 1 I $ I$ I 1$ Total General Capital Budget 20191 $ 108,212.00 1 $ 1 $ 108,212.00 9/26/2016 Cap -Ex: 2017-2021 Page 10 of 11 389 I I$ I$ I$ - 390 I I + I I Total Account 391 $ - I I 391 Total Account 3911 $ - $ 67,531.00 $ 2014 Directional Drill $ 157,571.00 2006 31OJD Backhoe Tractor $ 87,418.00 $ 87,418.00 2008 F350 Super Duty Service Truck $ 54,636.00 $ 54,636.00 392 Total Account 392 $ 225,102.00 $ 225,102.00 392 Total Account 392 $ 142,054.00 Total Account 393 $ - $ 142,054.00 $ Misc. Tools --Gas Division $ $ Misc. Tools --Electric Division $ 1 1 1 1 393 Total Account 393 $ 395 I $ I Misc. Tools --Gas Division $$ $ I I I Misc. Tools --Electric Division $ 1 I $ 394 Total Account 394 $ $ $ 395 I $ I $ I I $ 396 I j $ I I $ 397 Radios ! $ I $ 399 I $ I I $ Total General Capital Budget 20201 $ 142,054.00 I $ I $ 142,054.00 389 I I $ — - I $ - I $ _ 390 I I I + I 391 Total Account 391 $ - $ 2014 Vactron (270E) $ 67,531.00 $ 67,531.00 2014 Directional Drill $ 157,571.00 $ 157,571.00 392 Total Account 392 $ 225,102.00 $ 225,102.00 1 I 393 Total Account 393 $ - $ Misc. Tools --Gas Division $ $ Misc. Tools --Electric Division $ 1 1 $ 394 Total Account 394 $ $ 395 I $ I I $ 396 I $ I I $ 397 I Radios $ I I $ 399 I $ I I $ Total General Capital Budget 20211 $ 225,102.00 $ I $ 225,102.00 9/26/2016 Cap -Ex: 2017-2021 Page 11 of 11 Gas Transmission Capital Projects 503,000 HUC Project Transmission lateral to HCP J 503,000 HUC Project Transmission lateral to HCP 210,000 Reimbursable 41,000 HUC Project 251,000 20,000 Reimbursable 1,277,000 50% Chance of completion Metering Correction - Final Meter 509/6 Chance of completion GAS TRANSMISSION PLANT Annual Depreciation Account # Material Labor Description of Account Number ROW Easements - Transmission Lateral to HCP Depreciation Expense next five 365 366 Land and Land Rights(Transmission Plant Gas) 1$ $ $ 366 $ 500,000 $ Structures and Improvements 368 $ $ _ 367 Is Mains $ $ 555,854.30 $ 2,779,271.50 368 Specific Gravity Meter - Hutchinson $ Compressor Station Equipment 1,000 $ $ _ $ _ 369 240,0001$ 11,0001$ M & R Station Equipment SCADA Equip - Hanska $ 22,010.12 $ 110,050.60 370 371 Communication Equipment I $ 18,116.59 $ 90,582.95 371 is 1,255,000 1 $ Other Equipment $ - $ _ Benchmark for Capital Expenditures(to maintain what we have) $ 595,981.01 $ 2,979,905.05 Gas Transmission Capital Expenditure Programming Over/(Under) Account # 2017 2018 ' 2019 ' 2020 2021 Totals I Benchmark 365 $ 503,000 $ 303,000 $ $ 303,000 $ $ 1,109,000.00 $ 1,109,000.00 366 $ - $ - $ $ - $ $ - $ 367 $ 503,000 $ 5,506,000 $ $ 5,506,000 $ $ 11,515,000.00 $ 8,735,728.50 368 $ - $ - $ $ - $ $ - $ - 369 $ 251,000 $ 460,000 $ $ 460,000 $ $ 1,171,000.00 $ 1,060,949.40 370 $ 20,000 $ 25,000 $ $ 25,000 $ $ 70,000.00 $ (20,582.95) 371 $ - $ - $ $ - $ $ - $ - Total $ 1,277,000 $ 6,294,000 $ $ 6,294,000 $ $ 13,865,000.00 $ 10,885,094.95 503,000 HUC Project Transmission lateral to HCP J 503,000 HUC Project Transmission lateral to HCP 210,000 Reimbursable 41,000 HUC Project 251,000 20,000 Reimbursable 1,277,000 50% Chance of completion Metering Correction - Final Meter 509/6 Chance of completion GAS TRANSMISSION PLANT Acct k Project List Material Labor 365 ROW Easements - Transmission Lateral to HCP is 500,000 is 3,000 $ 366 1 1$ 367 Transmission Lateral to HCP - Materials, Engineering and Permitting $ 500,000 $ 3,000 I $ 368 ( I Is Interconnect Station - Hanska $ 200,000 $ 10,0001 $ Specific Gravity Meter - Hutchinson $ 40,000 $ I 1,000 $ 369 Total $ 240,0001$ 11,0001$ 370 SCADA Equip - Hanska I $ 15,0001$ 5,0001$ 371 l I is Total Gas Transmission Capital Budget 2017 is 1,255,000 1 $ 22,0001$ 503,000 HUC Project Transmission lateral to HCP J 503,000 HUC Project Transmission lateral to HCP 210,000 Reimbursable 41,000 HUC Project 251,000 20,000 Reimbursable 1,277,000 50% Chance of completion Metering Correction - Final Meter 509/6 Chance of completion 3,000 1 $ GAS TRANSMISSION PLANT HUC Project Transmission lateral to HCP Acct # Project List Material 365-0100 ROW Easements (Damages) - Transmission Lateral to HCP Is 300,000 1 $ 366-0100 + I 367-0100 I Transmission Lateral to HCP - Materials, Engineering and Permitting + $ 5,500,000 $ 368-0100 460,000 + I 369-0100 I Interconnect Station, Pig Launching Station $ 450,000 I $ 370-0100 SCADA Equipment - HCP Interconnect Station is 20,000 I $ 371-0100 + I Total Gas Transmission Capital Budget 2018 $ 6,270,000 I $ GAS TRANSMISSION PLANT Acct # Project List Material 365 NA is _I$ 366 NA is I $ 367 NA is I $ 368 NA is I $ 369 NA is I $ 370 NA is I $ 371 NA is I $ Total Gas Transmission Capital Budget 2019 i $ - I $ GAS TRANSMISSION PLANT Acct # I Project List Material 365 NA is I $ 366 NA is I $ 367 NA i $ $ 368 I NA is $ 369 NA is I $ 370 NA + $ I $ 371 NA + $ I $ Total Gas Transmission Capital Budget 2020 is I $ GAS TRANSMISSION PLANT Acct # Project List Material 365 NA is I $ 366 NA + $ I $ 367 NA is I $ 368 NA is ' $ 369 ( NA is I $ 370 NA is I $ 371 NA is I $ Total Gas Transmission Capital Budget 2021 is I $ 3,000 1 $ 303,000 HUC Project Transmission lateral to HCP is - 6,000 $ 5,506,000 HUC Project Transmission lateral to HCP I$ 150,000 HUC 10,000 $ 460,000 Project, 300,000 Transmission lateral to HCP Reimbursable 5,000 I $ 25,000 Reimbursable Transmission lateral to HCP I$ 24,000 1 $ 6,294,000 Account # 376 378 379 380 381 383 385 386 387 Account # 376 378 379 380 381 383 385 386 387 Total Acct # 376 378 379 380 381 383 385 386 387 Gas Distribution Capital Projects IAnnual I Depreciation Expense next Description of Account Number Material I Gas Distribution Capital Expenditure Programming Depreciation five years Mains $45,000.0( $ 82,177.82 $ 410,889.10 M & R Station Equipment --General $30,000.00 $ 15,220.76 $ 76,103.80 M & R Station Equipment City Gate Stations, Telemetering Benchmark $ 15,600.27 $ 78,001.35 Services $ $ 15,812.05 $ 79,060.25 Meters and All Fittings 45,000 $ 22,375.78 $ 111,878.90 House Regulators and All Fittings $ $ 2,357.61 $ 11,788.05 Industrial M & R Station Equipment 18,000 $ 2,203.48 $ 11,017.40 Other Property on Customers' Premises $ $ - $ - Other Equipment (CO Tester, Gas Analyzer, Recorders) - $ 7,167.06 $ 35,835.30 Benchmark for Capital Expenditures(to maintain what we have) $ $ 162,914.83 $ 778,738.85 GAS DISTRIBUTION PLANT Project List Misc Developments & System Improvements Total Improvements to Regulator Stations Service Lines Meters, AMI and All Fittings Industrial Metering and Regulation Gas Detection Equipment Total Gas Distribution Capital Budget 2017 Material I Gas Distribution Capital Expenditure Programming Total $30,000.00 $15,000.00 $45,000.0( $0.00 $0.00 $0.0( $30,000.00 $15,000.00 $45,000.0( $ Totals Over/(Under) Benchmark 2017 2018 2019 2020 2021 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 225,000 $ (185,889.10) $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ - $ 72,000 $ (4,103.80) $ - $ - $ - $ - $ - $ - $ (78,001.35) $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 $ 295,939.75 $ 73,500 $ 73,500 $ 73,500 $ 73,500 $ 73,500 $ 367,500 $ 255,621.10 $ - $ - $ - $ - $ - $ - $ (11,788.05) $ 23,500 $ 23,500 $ 23,500 $ $ $ 70,500 $ 59,482.60 $ 5,000 $ 5,000 $ 5,000 $ $ $ 15,000 $ (20,835.30) $ 240,000 $ 240,000 $ 240,000 $ 211,500 $ 193,500 $ 1,125,000 $ 310,425.85 GAS DISTRIBUTION PLANT Project List Misc Developments & System Improvements Total Improvements to Regulator Stations Service Lines Meters, AMI and All Fittings Industrial Metering and Regulation Gas Detection Equipment Total Gas Distribution Capital Budget 2017 As Required As Required As Required Material I Labor 1 Total $30,000.00 $15,000.00 $45,000.0( $0.00 $0.00 $0.0( $30,000.00 $15,000.00 $45,000.0( $ 15,000.00 $ 3,000.001 $ 18,000.00 1 1$ - $ 55,000.00 $ 20,000.00 1 $ 75,000.00 $ 70,000.00 $ 3,500.001 $ 73,500.00 1 1$ is 20,000.00 1 $ 3,500.001$ 23,500.00 1 1 1$ - is 1 5,000.00 1 is 5,000.00 1 $ 195,000.00 1 $ 45,000.00 1 $ 240,000.00 As Required As Required As Required Acct # 376 378 379 380 381 383 385 386 387 Acct # 376 378 379 380 381 383 385 386 387 Acct # 376 378 379 380 381 383 385 386 387 GAS DISTRIBUTION PLANT Project List Misc Developments & System Improvements Total Improvements to Regulator Stations Service Lines Meters, AMI and All Fittings Industrial Metering and Regulation Gas Detection Equipment Total Gas Distribution Capital Budget 2018 GAS DISTRIBUTION PLANT Project List Misc. Developments & System Improvements Total Improvements to Regulator Stations Service Lines Meters, AMI and All Fittings Industrial Metering and Regulation Gas Detection Equipment Total Gas Distribution Capital Budget 2019 GAS DISTRIBUTION PLANT Project List Misc. Developments & System Improvements Total Improvements to Regulator Stations Service Lines Meters, AMI and All Fittings Total Gas Distribution Capital Budget 2020 $30,000.001 $15,000.00 1 Material I Labor 1 1$ $30,000.00 $15,000.00 1 $0.00 $0.00 1$ $30,000.00 $15,000.00 $ 15,000.00 $ 3,000.00 $ 1 1 is $ 55,000.00 $ 20,000.00 1 $ $ 70,000.00 $ 3,500.001$ Is I Is $ 20,000.00 1 $ 3,500.001$ I Is Is 5,000.00 1 I $ 1 $ 195,000.00 1 $ 45,000.00 1 $ $30,000.001 $15,000.00 1 $30,000.001 $15,000.001 1$ 15,000.00 1 $ 3,000.001 $ 1 1 Is 1$ 55,000.00 1 $ 20,000.00 1 $ is 70,000.00 1 $ 3,500.001 $ 1 1 is 1 $ 20,000.00 1 $ 3,500.001$ I$ Is 5,000.001$ - I $ 1 $ 195,000.00 1 $ 45,000.00 1 $ $30,000.001 $15,000.00 1 $30,000.001 $15,000.001 1$ 15,000.00 1 $ 3,000.00 ( $ 1 1 I$ 1 $ 55,000.00 1 $ 20,000.00 1 $ 1 $ 70,000.00 ( $ 3,500.00 1 $ 1 I Is I I$ is 1 is $ 170,000.00 1 $ 41,500.00 1 $ S Total $45,000.00 As Required 18,000.00 75,000.00 73,500.00 23,500.00 5,000.00 240,000.00 Required Required $45,000.00 As Required $0.00 $45,000.00 18,000.00 As Required 75,000.00 As Required 73,500.00 23,500.00 5,000.00 240,000.00 $45,000.00 As Required $0.00 $45,000.00 18,000.00 As Required 75,000.00 As Required 73,500.00 211,500.00 Acct # GAS DISTRIBUTION PLANT Project List Material Labor Total Misc. Developments & System Improvements $30,000.00 $15,000.00 $45,000.00 $0.00 376 Total $30,000.00 $15,000.00 $45,000.00 378 , I Is 379 i is _ 380 Service Lines $ 55,000.00 $ 20,000.00 1 $ 75,000.00 381 Meters, AMI and All Fittings $ 70,000.00 1 $ 3,500.001$ 73,500.00 383 1 is _ 385 $ 386 $ 387 + Is _ Total Gas Distribution Capital Bridget 2021 $ 155,000.00 $ 38,500.00 1 $ 193,500.00 As Required As Required Administrative Account x I Description of Account Number 389 Land and Land Rights (Center) 390 Structures & Improvements (Buildings - Industrial Park) 391 Office Furniture & Equipment 392 Transportation Equipment 393 Stores Equipment 394 Tools, Shop & Garage Equipment 395 Laboratory Equipment (Meter Test Room 396 Power Operated Equipment 397 Communication Equipment (Radio) 1$ 461,431.00 is Benchmark for Capital Expenditures(to maintain what we have) Account k 389 390 391 392 393 394 395 396 397 Total Annual Depreciation Depreciation Expense next 1 Expense five vears Over/(Under) Benchmark 2017 $ 108,026.00 $ 540,130.00 $ 91,675.00 $ 458,375.00 $ 105,577.00 $ 527,885.00 $ 5,571.00 $ 27,855.00 $ 50,484.00 $ 252,420.00 $ 8,587.00 $ 42,935.00 $ 74,447.00 $ 372,235.00 $ 17,064.00 $ 85,320.00 1$ 461,431.00 is 1,849,600.00 Administration Capital Expenditure Programming Totals Over/(Under) Benchmark 2017 2018 2019 2020 2021 392 $ $ Annual Vehicle Budget 393 $ $ $ $ $ $ $ $ (540,130.00) $ $ - $ $ $ $ $ (458,375.00) $ - $ 37,080.00 $ 105,029.00 $ 84,686.00 $ - $ 226,795.00 $ (301,090.00) $ $ - $ - $ - $ $ - $ (27,855.00) $ $ $ $ $ $ $ (252,420.00) $ $ $ $ $ $ $ (42,935.00) $ $ $ $ $ $ $ (372,235.00) $ $ is I $ is $ $ (85,320.00) is Is 37,080.00 1 is 84,686.00 1 $ $ 226,795.00 S (2,080,360.00) ADMINISTRATION Acct k Project List 389 Total Account 389 390 Total Account 390 391 Total Account 391 392 $ $ Annual Vehicle Budget 393 $ Total Account 393 394 Total Account 394 395 Total Account 395 396 Total Account 396 397 Total Administration Capital Budget 2017 Electric Natural $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ +q$ Hca In 392 393 394 395 396 397 Acct # 389 390 391 I 392 393 394 395 ADMINISTRATION Project List Electric Natural Gas Total Total Acccount 389 $ - $ _ $ _ Total Account 390 $ $ $ Total Account 391 $ $ _ $ Replace Vehicle #433 (Per Replacement Schedule) $ 37,080.00 $ 37,080.00 Total Account 392 $ $ 37,080.00 $ 37,080.00 Total Account 393 $ - $ _ $ _ Total Account 394 $ $ $ Total Account 395 $ - $ _ $ _ Total Account 396 $ - $ _ $ _ Total Account 397 $ $ $ Total Administration Capital Budget 2018 Is $ 37,080.00 1 $ 37,080.00 ADMINISTRATION 1 2019 Project List I Electric I Natural Gas I Total Total Acccount 389 $ $ $ Total Account 390 $ $ $ Total Account 391 $ - $ _ $ _ Replace vehicle #651 (Per Replacement Schedule) $ 38,192.00 $ 38,192.00 Replace vehicle #623 (Per Replacement Schedule) $ 66,837.00 $ 66,837.00 Total Account 392 $ $ 105,029.00 $ 105,029.00 Total Account 393 $ $ $ Misc. Tools $ Total Account 394 $ $ $ Total Account 395 $ $ $ Total Administration Capital Budget 2019 1 $ - I $ 105,029.00 1 $ 105,029.00 ADMINISTRATION Acct # Project List + Electric Natural Gas Total 389 $ Total Acccount 389 $ $ $ 390 $ Total Account 390 $ $ $ 391 $ Total Account 391 $ $ - $ Replace vehicle #357 (Per Replacement Schedule) $ 84,686.00 $ 84,686.00 392 $ - Total Account 392 $ - $ 84,686.00 $ 84,686.00 393 $ Total Account 393 $ $ $ 394 $ $ $ Total Account 394 $ $ $ 395 $ Total Account 395 $ $ $ 396 $ Total Account 396 $ $ $ 397 $ Total Account 397 $ $ - $ Total Administration Capital Budget 2020 $ Is 84,686.00 1 $ 84,686.00 ADMINISTRATION 2021 Acct # Project List Electric Natural Gas Total 389 $ Total Acccount 389 $ $ $ 390 $ Total Account 390 $ $ $ 391 $ Total Account 391 $ $ $ 392 $ Total Account 392 $ $ $ 393 $ Total Account 393 $ $ $ 396 $ Total Account 396 $ $ $ 397 $ Total Account 397 $ $ $ Total Administration Capital Budget 2021 $ is is