KLWTD Budget

Wastewater Service Revenue ($7,800,000)

The District’s revenues, charges for wastewater services represent the largest source of budgeted revenues for the District. This revenue is derived by providing sewer collection and treatment services to the public. Users are charged for this service on their monthly water bill from the Florida Keys Aqueduct Authority (“FKAA”). Customers are charged a base service charge and a usage charge, which is based on their monthly water consumption.

Non Ad Valorem Assessments ($3,540,865)

Non ad valorem assessments revenue is the annual assessments of system development charges to customers for providing the sewer infrastructure. Initially, assessments were levied in phases and customers were given the option to prepay the assessment in full, or to have the assessment spread over 20 years as a non ad valorem assessment on their tax bill from Monroe County. The assessment charge is calculated on the number of equivalent dwelling units (“EDU”) for the serviced parcel. An EDU represents the equivalent to a single family unit and is based on 167 gallons per day of potable water usage.

Monroe County ILA ($2,125,000)

The District successfully negotiated an interlocal agreement with Monroe County to exchange the $17,000,000 of Stan Mayfield funding that the State allocated to the District in FY13/14. In FY15/16 the District exchanged $1,250,000 of Stewardship funding in return for annual payments from the County of funds that have an unrestricted use.

Islamorada Wastewater Service & Insurance Surcharge Revenue ($1,365,302)

The District and Islamorada, Village of Islands (“Village”) have an interlocal agreement for the use of 32% of the District’s plant capacity. The Village is charged a base rate of $4.65 per 1,000 gallon of influent, not including any rate surcharges, at the District’s advanced wastewater treatment plant. That rate is calculated at $4.30 for treatment cost and $0.35 for repair and replacement funding. The District began receiving flows from the Village on June 16, 2014.

The Interlocal agreement with the Village requires them to pay 32% of the insurance expense for the advanced treatment plant. The District invoices the Village annually for this surcharge.

System Development Charge Advance Payoff Revenue ($100,000)

Customers have the option to pay off their system development charge at any time.Although substantially all of the serviced parcels have been assessed, customers may choose to either pay down or pay off their assessment in advance.

Interest Income ($36,000)

The District is projected to earn interest income in FY21/22 from its interest bearing accounts.

Expenditure Overview

The total projected appropriations of this budget are $18,373,467.The following chart shows a summary of the budgeted appropriations by category:

Where the Money Goes

Personnel Services ($2,914,376)

Personnel Services includes all salaries and benefits (including workers compensation insurance) for District employees. This represents a $143,198 increase from the FY20/21 budgeted amount.

Operating Expenses ($4,515,212)

Operating expenditures increased by $326,637.FY21/22 will be the twelfth year of full operations.

Capital Outlay ($4,400,193)

The FY21/22 budget includes appropriations for capital outlay.The following chart provides the details on the specific capital outlay items requested.

Capital Outlay Items

These projects, while budgeted, are still subject to board approval

Debt Service ($4,283,686)

The FY21/22 budget includes appropriations for debt service on the District’s two State Revolving Fund (SRF) loans.The SRF loans are paid semi‐annually.This includes appropriations of $1,265,310 for extra debt payments.

Transfers ($2,260,000)

The FY21/22 budget includes transfers to the District’s following reserve accounts: repair and replacement, self‐insurance and insurance deductible.$1,200,000 is projected to be transferred to the reserve for future repairs and replacements.The ILA with the Village also requires that $0.35 of the $4.65 flow charge be set aside for future repairs and replacements. The District is also going to reserve $1,060,000 for insurance deductibles and for self‐insurance.FY21/22 is the fourth year a contribution will be made to the self insurance & insurance deductible fund.At the end of FY21/22, the District expects to have $7,625,450 in funding designated for repairs and replacements, $2,360,000 for insurance deductibles and self‐insurance.

Excess reserve funding is required to meet the actual reserve and replacement funding necessary based on the engineering estimates.These reserve categories are important due to the District’s unique island location.The District’s goal is to maintain twelve months of operating expenses in unassigned cash as a reserve balance.