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HomeMy WebLinkAboutUmbaugh -Sewage Works2012-2015 C I T Y O F J E F F•E R S O N V I L L E 812 - 285 -6400 Y Off. (6 •, Jeffersonville City Hall ' 11%`, N 500 Quartermaster Court , Q09 _ W Jeffersonville, Indiana 47130 T FR N S0 H. J. Umbaugh & Associates Certified Public Accountants In connection with your compilation of the projected operating revenues, cash operation and maintenance expenses, non - operating revenues, debt service, debt service coverage and summaries of significant assumptions and accounting policies of the Jeffersonville Municipal Sewage Works for the years ending December 31, 2012, 2013, 2014 and 2015, we make the following representations: 1. The financial projections present our assumptions and, to the best of our knowledge and belief, the Sewage Works' expected operating revenues, cash operation and maintenance expenses, non - operating revenues and debt service for the periods in conformity with the generally accepted accounting principles expected to be used by the Sewage Works during the projection periods, which are consistent with the principles that the Sewage Works uses in preparing its historical financial statements. 2. The financial projections are based on our judgment, considering present circumstances, of the expected conditions and our expected course of action. 3. We have made available to you all significant information that we believe is relevant to the projections. 4. We believe that the assumptions underlying the projections are reasonable and appropriate. 5. To the best of our knowledge and belief, the documents and records supporting the assumption. are appropriate. Alla/: Signed: LIIIIVA Name: o lJ t��L P,te -Ntot Title: 4.O LLE(L Date: " 1+ 3 1WtZ An equal opportunity employer. DAFT Accounting Report On Proposed Project and Bond Issue Jeffersonville, Indiana Municipal Sewage Works November 9, 2012 Umbaugh Certified Public Accountants Indianapolis, Indiana TABLE OF CONTENTS Page(s) ACCOUNTANTS' PROJECTION AND COMPILATION REPORT PROJECTED OPERATING REVENUES, CASH OPERATION AND MAINTENANCE EXPENSES, NON - OPERATING REVENUES AND DEBT SERVICE COVERAGE 3 Projected Operating Revenues, Cash Operation and Maintenance Expenses, Non - Operating Revenues and Debt Service Coverage 4 — 8 Summary of Significant Accounting Policies, Assumptions and Notes PROJECTED SUPPLEMENTAL FINANCIAL INFORMATION 9 General Comments 10 Schedule of Project Cost and Funding I 1 Schedule of Amortization of $11,865,000 Principal Amount of Proposed Sewage Works Revenue Bonds of 2012 12 — 14 Schedule of Combined Bond Amortization 15 Schedule of Present and Future Sewage Rates and Charges SUPPLEMENTAL DATA 16 — 17 Comparative Statement of Net Assets 18 Comparative Statement of Revenues, Expenses and Changes in Net Assets 19 — 20 Comparative Statement of Cash Flows 21 — 22 Comparison of Account Balances With Minimum Balances Required 23 Schedule of Amortization of $1,764,773 Principal Amount of Outstanding Sewage Works Revenue Bonds, Series 1999 24 Schedule of Amortization of $2,225,000 Principal Amount of Outstanding Sewage Works Revenue Bonds, Series 2003 25 Schedule of Amortization of $6,445,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2005, Series A 26 Schedule of Amortization of $9,547,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2008 27 Schedule of Amortization of $1,346,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2009, Series A 28 Schedule of Amortization of $2,995,000 Principal Amount of Outstanding Sewage Works Refunding Revenue Bonds of 2009 TABLE OF CONTENTS (Cont'd) Page(s) SUPPLEMENTAL DATA (Cont'd) 29 Schedule of Amortization of $2,395,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2010, Series A 30 Schedule of Amortization of $17,355,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2010, Series B 31 Schedule of Amortization of $3,485,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2010, Series C 32 Schedule of Amortization of $22,350,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2011, Series A 33 Schedule of Amortization of $772,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2011, Series B 34 Schedule of Amortization of $20,550,000 Principal Amount of Outstanding Sewage Works Revenue Bonds of 2011, Series C ACCOUNTANTS' PROJECTION AND COMPILATION REPORT November 9, 2012 Honorable Mike Moore, Mayor and Members of the Sewer Board City of Jeffersonville 500 Quartermaster Court, Suite 300 Jeffersonville, IN 47130 We have compiled the accompanying projections of operating revenues, cash operation and maintenance expenses, non - operating revenues, debt service and debt service coverage and related schedules for the calendar years ending December 31, 2012, 2013, 2014 and 2015 in accordance with attestation standards established by the American Institute of Certified Public Accountants. The accompanying projection presents for the projection period to the best of management's knowledge and belief, the Jeffersonville Municipal Sewage Works (the "Sewage Works ") projected revenues, cash operation and maintenance expenses, non - operating revenues, debt service, and debt service coverage that would result from the construction and financing of the proposed improvement projects described in this report. The accompanying projection of debt service coverage and this report were prepared for presentation to the Indiana State Revolving Fund for the purpose of negotiating the sale of proposed $11,865,000 par amount of Sewage Work Revenue Bonds of 2012 to finance expected costs for the proposed improvements to the Sewage Works and should not be used for any other purpose. A compilation is limited to presenting projected financial information that is the representation of management and does not include evaluation of the support for the assumptions underlying such information. We have not examined the projection of debt service coverage, and, accordingly, do not express an opinion or any other form of assurance on the accompanying projection or assumptions. Furthermore, even if the Sewage Works finances and constructs the proposed improvement projects, there will usually be differences between projected and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update our report for events and circumstances occurring after the date of this report. We have also compiled the accompanying comparative statement of net assets of the Sewage Works as of December 31, 2009, 2010, 2011 and June 30, 2012, and the related comparative statements of revenues, expenses, and changes in net assets, and cash flows for the periods then (Continued on next page) 1 • Honorable Mike Moore, Mayor Sewer Board Date: November 9, 2012 Page 2 ended and supplementary data. We have not audited or reviewed the accompanying historical financial statements and supplementary data, and accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Sewage Works' financial position, results of operations and its cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Jeffersonville Municipal Sewage Works. DRA FT • JEFFERSONVILLE SEWAGE WORKS Jeffersonville, Indiana PROJECTED OPERATING REVENUES, CASH OPERATION AND MAINTENANCE EXPENSES, NON — OPERATING REVENUES AND DEBT SERVICE COVERAGE JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS PROJECTED OPERATING REVENUES, CASH OPERATION AND MAINTENANCE EXPENSES, NON- OPERATING REVENUES, AND DEBT SERVICE COVERAGE (Amounts rounded to the nearest $100) Calendar Year Ending 2012 2013 2014 2015 Operating Revenues: Sewer $12,533,500 $13,736,700 $15,055,400 $16,515,800 Drainage 1,299,900 1,299,900 1,299,900 1,299,900 Penalties 359,200 390,400 424,600 462,500 Total Operating Revenues 14,192,600 15,427,000 16,779,900 18,278,200 Cash Operating Expenses: Salaries and wages 2,502,100 2,577,200 2,654,500 2,734,100 Employee benefits 1,146,400 1,180,800 1,216,200 1,252,700 Purchased power 571,300 588,400 806,100 830,300 Materials and supplies 563,000 579,900 622,300 641,000 Transportation 200,400 206,400 212,600 219,000 Repairs and maintenance 463,000 476,900 541,200 557,400 Sludge removal 101,900 105,000 108,200 111,400 Contractual services 505,100 520,300 560,900 577,700 Office supplies 279,700 288,100 296,700 305,600 Insurance 185,300 190,900 196,600 202,500 Other 149,200 153,700 158,300 163,000 Total Cash Operating Expenses 6,667,400 6,867,600 7,373,600 7,594,700 Net Operating Revenues 7,525,200 8,559,400 9,406,300 10,683,500 Other Income: Interest income 29,500 37,500 45,800 58,400 Inspection/tap /availability fees 561,400 561,400 561,400 561,400 BAB debt service subsidy payment 352,600 352,600 352,600 352,600 Other Income 209,700 209,700 209,700 209,700 Total Other Income 1,153,200 1,161,200 1,169,500 1,182,100 Net Revenues Available for Debt Service $8,678,400 $9,720,600 $10,575,800 $11,865,600 Debt Service Payments $5,399,600 $7,125,000 $7,124,700 $7,120,800 Debt Service Coverage 161% 136% 148% 167% Note: An assumed reduction of 7.6% in the BAB subsidy payments would result in a 0.5% reduction in the debt service coverage percentage. (The Accountants' Compilation Report and the summary of significant accounting policies, assumptions and notes are an integral part of this statement.) 3 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES See Accountants' Compilation Report These financial projections present, to the best of the management of the Jeffersonville Municipal Sewage Works ( "Management') knowledge and belief, the Jeffersonville Municipal Sewage Works ( "Sewage Works ") expected operating revenues, cash operation and maintenance expenses, non - operating revenues and debt service coverage for the projection period. Accordingly, the projection reflects the Management's judgment of the expected conditions and its expected course of action as of November 9, 2012, the date of this projection. The financial projection is based on Management's assumptions concerning future events and circumstances. The assumptions disclosed herein are those which Management believes are significant to the projection or are key factors upon which the financial results of the enterprise depend. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur subsequent to November 9, 2012, the date of this projection. Therefore, the actual results achieved during the projection period could vary from the projection, and the variations may be material. Management does not intend to revise this projection to reflect changes in present circumstances or the occurrence of unanticipated events. The financial projection has been prepared in conjunction with the issuance of $11,865,000 Sewage Works Revenue Bonds of 2012, Series (the "Proposed Bonds "), to construct the south pump station and force main, north pump station and force main - phase I and other wastewater improvements. Significant Accounting Policies Reporting Entity: The financial statements of the Sewage Works, a component unit (Enterprise Fund) of the City of Jeffersonville, Indiana, conform to generally accepted accounting principles for state and local governments. The Sewage Works provides sewer services for the greater Jeffersonville area. These services primarily consist of providing sewage collection and treatment services to residential and commercial customers. The Sewage Works had 14,018 customers as of June 30, 2012. Basis of Accounting: The Sewage Works reports its financial statements using the economic resources measurement focus and the accrual basis of accounting as prescribed by the Governmental Accounting Standards Board. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Capital Assets: Property and equipment are recorded at actual or estimated historical cost. Maintenance and repairs are charged to operating expense as incurred; major renewals and betterments are capitalized. Contributed or donated assets are reported at estimated fair value at the time received. (Continued on next page) 4 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES See Accountants' Compilation Report Basis of Accounting: (Continued) Depreciation: Depreciation is computed on the straight -line method, using a composite depreciation rate based on the estimated useful service lives of various classes of property. Operating revenue: Operating revenues are based on monthly billings and are recorded when billed. Prepaid items: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Accounts Receivable: Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for uncollectible accounts. Unamortized Bond Issuance Costs: Costs associated with the issuance of bonds are capitalized as bond issuance costs and amortized over the life of the related bonds. Basis of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates Significant Assumptions and Notes (1) Proposed Improvement Project and Related Bond Issue The Sewage Works, acting through the City Council, has proposed certain improvements to its sewage works system. The proposed project being funded by the Proposed Bonds is the construction of the South Pump Station and Force Main, North Pump Station and Force Main — Phase I and Divert Utica Pump Station Force Main to LC Pump Station along with associated design and issuance costs. The project to be financed with the Proposed Bonds is anticipated to cost $11,865,000 based on construction bids and engineering fees of approximately $10,961,508, and other non - construction costs of approximately $903,492. Construction is anticipated to commence shortly after bond closing and be substantially complete by November 2013. The Projects will be financed from the proceeds of $11,865,000 principal amount of the Proposed Bonds. (2) Operating Revenues • (A) Projected annual operating revenues for the projected periods are based upon the recorded results of operations for the twelve months ended June 30, 2012 and the following adjustments: (Continued on next page) 5 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES See Accountants' Compilation Report (2) Operating Revenues (continued) Sewer billings: Reflects the revenues from the twelve months ended June 30, 2012 plus the 9.6% phased -in rate increases that were adopted by the City Council on December 22, 2009 and effective for collection on January 1, 2012, January 1, 2013, January 1, 2014 and 9.7% increase effective on January 1, 2015. Drainage billings: Reflects the revenues from the twelve months ended June 30, 2012. Penalties: Reflects the revenues from the twelve months ended June 30, 2012 increased by the same percentage increase as the aggregate sewer and drainage billings each year. (3) Operation and Maintenance Expenses (A) Projected year 2012 operating expenses are based upon the recorded results of operations for the twelve months ended December 31, 2011 adjusted to reflect the Sewage Works' 2012 budget and for fixed, known and measurable changes as listed below. Projected years 2013, 2014 and 2015 assume an annual inflationary adjustment of 3 %. (i) Salaries and wages are adjusted to reflect the 2012 pay rates. Projected years 2013, 2014 and 2015 are assumed to increase by 3 %. (ii) Employee pensions and benefits are adjusted to reflect the current health insurance premium, payroll taxes and PERF rates. (iii) Contractual services and other are adjusted to eliminate nonrecurring expenditures. (iv) Based on information from the consulting engineer the cash operation and maintenance expenses will increase by $300,000 per year upon completion of the project beginning in year 2014. (4) Non - Operating Revenues Interest income for projected years 2012, 2013, 2014 and 2015 are based on 80% of the projected cash balances available to invest at the current estimated composite investment interest rate of 0.5%. (Continued on next page) 6 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES See Accountants' Compilation Report (4) Non - Operating Revenues (continued) Availability, tap and inspection fees are based on the average of 2009 through 2011 amounts. The BAB debt service subsidy payment is based on 35% of annual interest due assumed to be collected in the month prior to the interest payment due date. Other income is based on calendar year 2011 income adjusted for non - recurring type receipts. (5) Debt Service The Proposed Bonds have been amortized over a 20 -year period at an interest rate of 1.78% on the bonds as detailed on page 11. It is anticipated that the bonds will be dated the day of closing assumed to be December 13, 2012. The first principal payment is scheduled to be made on January 1, 2014. Principal is to be paid annually thereafter on January 1st. Interest payments are scheduled to be made semi - annually January 1st and July 1st beginning July 1, 2013. Long -term debt consists of Sewage Works Revenue Bonds secured by the net revenues of the Sewage Works. The amortization schedules of the outstanding bonds are shown on pages 23 — 34. The Proposed Bonds will be issued on parity with the outstanding bonds. (6) Capital Leases Payable The City has entered into several capital leases for a camera truck, two combination sewer cleaning trucks, stand -by generators, dump trucks, Caterpillar shed loader and several pickup trucks. The total annual payment on these leases is approximately $275,600 annually. (7) Consent Decree The City of Jeffersonville entered into a legally binding consent decree with The United States Department of Justice ( "DOJ ") and Indiana Department of Environmental Management ( "IDEM ") in November of 2009 concerning its Combined Sewer Overflows ( "CSOs "). The sewer system in Jeffersonville is combined, sanitary, and storm sewers. As a result of the combined sewer portion of the system, precipitation events lead to combined sewer overflows into the Ohio River and Cane Run, a tributary to the Ohio River, thus violating the Clean Water Act. The DOJ is assessing the affordability of the proposed improvements. The amount of the improvements in addition to the current CSO projects is anticipated to be approximately $80,000,000, based on construction estimates from the City's consulting engineers. These improvements and related bond issues will require future increases in sewer rates and charges in order to provide adequate additional revenues for the resulting debt service requirements and the additional increases in sewer rates could be significant; however, it is not currently anticipated that additional rate increases will be required prior to 2015. Continued on next page) 7 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES See Accountants' Compilation Report (8) Build America Bonds 35% Interest Subsidy Payment These forecasted financial statements and the debt service coverage calculations assume a subsidy payment from the U.S. Treasury equal to 35% of the interest payments due on the Build America Bonds ( "Subsidy Payments ") displayed on page 32. Federal tax law contains a number of requirements that apply to the 2010 B Bonds in order for them to be and remain qualified as "Build America Bonds" under Section 54AA(d) of the Code and "qualified bonds" under Section 54AA(g) of the Code (any bonds which are so qualified, "Qualified Build America Bonds "), including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. Failure to comply with certain requirements could cause the 2010 B Bonds to not be Qualified Build America Bonds retroactively to the date of issuance of the 2010 B Bonds. If for any reason the 2010 B Bonds are not Qualified Build America Bonds, the City will not be entitled to receive a Subsidy Payment. To receive a Subsidy Payment on or before any date on which any interest is due on the 2010 B Bonds, the City is required, under currently existing procedures, to file a tax return between 90 and 45 days prior to such date. Under such procedures, the City may expect to receive such Subsidy Payment within 45 days of filing such return. Depending on the timing of such filing, such Subsidy Payment may be received before or after the date on which such interest is due. No assurances are provided that the City will receive any Subsidy Payments. The amount of any Subsidy Payment is subject to legislative changes by Congress. There are currently no procedures for requesting a Subsidy Payment after the 45th day prior to an interest payment date; therefore, if the City fails to file the necessary tax return in a timely fashion, it is possible that the City will never receive such Subsidy Payment. Also, such Subsidy Payments are subject to offset against certain amounts that may, for unrelated reasons, be owed by the City to an agency of the United States of America. 8 JEFFERSONVILLE SEWAGE WORKS Jeffersonville, Indiana PROJECTED SUPPLEMENTAL FINANCIAL INFORMATION JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS PROJECTED SUPPLEMENTAL FINANCIAL INFORMATION GENERAL COMMENTS Schedule of Estimated Project Costs and Funding — Page 10 This schedule p project roject costs and sources of funding. The Utility project costs are based on a construction bids as provided by the Utility's consulting engineer. The J roject consists of the South Pump Station and Force Main, North Pump Station along F o th p Main — Phase I and Divert Utica Pump Station Force Main to LC Pump to associated design and issuance costs The rimar funding sources for the projects is revenue bonds totaling $11,865,000. The p Y Sewage Works is entering into an agreement with the State of Indiana to obtain proceeds through the State Revolving Fund Loan Program. The bonds are to be amortized interest r ate a period of not more than 20 years, beginning after completion of the project, at an for the Proposed Bonds. Schedule of Amortization of $11,865,000 Principal Amount of Sewage Works Revenue Bonds of2012 —Page 11 The schedule on page 12 summarizes the estimated debt service on the $11,865,000 Bowing by the Sewage Works from the State of Indiana through the State Revolving Fu that the Program. Interest is 1.78% based on the current subsidized 3 and therefore the first principal improvement project will be completed � y The bond ordinance adopted by the Sewage Works payment is assumed to be January 1, 201 requires that principal payments be made annually on January 1st and interest payments be made e semi - annually on January 1st and July 1st. The Bonds are to be secured byte net Sewage Works. Proposed Schedule of Combined Bond Amortization — Pages 12 - 14 Pages 14 through 16 present the proposed schedule of combined bond amortizationd schedule includes of all outstanding debt as well as the Proposed Bonds. Page 16 presents and the Proposed Bonds. combined bond amortization that includes both the outstanding debt Schedule of Present and Future Rates and Charges — Page - 15 This schedule presents the present and future adopted rates and charges 9 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF PROJECT COSTS AND FUNDING (Per Consulting Engineer) PROJECT COSTS Construction Costs and Contingencies: Lentzier Creek PS and FM $7,653,000 Bore and jack addition 776,000 North Pump Station and Force Main - Phase 1 1,535,900 Construction contingency (10 %) 996,608 Total Construction Costs and Contingencies 10,961,508 • Non - Construction Costs: Engineering Planning and Design: North & South PS and force main (1) Construction Administration: South pump station and force main 685,000 North pump station and force main 100,000 Allowance for legal, bond counsel, financial advisory, bond issuance costs, general contingencies and rounding 118,492 Total Non - Construction Costs 903,492 Total Project Costs $11,865,000 PROJECT FUNDING Proposed SRF Sewage Works Revenue Bonds, Series 2012 $11,865,000 (1) Engineering, planning and design for the North and South Pump Station and Force Main projects are being paid from the 2005 Bond proceeds. (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 10 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $11,865,000 PRINCIPAL AMOUNT OF PROPOSED SEWAGE WORKS REVENUE BONDS OF 2012 Principal payable annually on January 1st, beginning January 1, 2014. Interest payable semiannually on January 1st and July 1st, beginning July 1, 2013. Assumes bonds dated December 13, 2012. Assumed interest rates as indicated. Assumed Payment Principal Interest Debt Service Bond Year Date Balance Rate(s) * Principal Interest Total Total (In $1,000's) ( %) (In $1.000's) ( In Dollars ) 07/01/13 $116,158.35 $116,158.35 01/01/14 $11,865 1.78 $490 105,598.50 595,598.50 $711,756.85 07/01/14 101,237.50 101,237.50 01/01/15 11,375 1.78 509 101,237.50 610,237.50 711,475.00 07/01/15 96,707.40 96,707.40 01/01/16 10,866 1.78 518 96,707.40 614,707.40 711,414.80 07/01/16 92,097.20 92,097.20 01/01/17 10,348 1.78 528 92,097.20 620,097.20 712,194.40 07/01/17 87,398.00 87,398.00 01/01/18 9,820 1.78 536 87,398.00 623,398.00 710,796.00 07/01/18 82,627.60 82,627.60 01/01/19 9,284 1.78 546 82,627.60 628,627.60 711,255.20 07/01 /19 77,768.20 77,768.20 01/01/20 8,738 1.78 555 77,768.20 632,768.20 710,536.40 07/01/20 72,828.70 72,828.70 01/01/21 8,183 1.78 565 72,828.70 637,828.70 710,657.40 07/01/21 67,800.20 67,800.20 01/01/22 7,618 1.78 576 67,800.20 643,800.20 711,600.40 07/01/22 62,673.80 62,673.80 01/01/23 7,042 1.78 585 62,673.80 647,673.80 710,347.60 07/01/23 57,467.30 57,467.30 01/01/24 6,457 1.78 595 57,467.30 652,467.30 709,934.60 07/01/24 52,17I.80 52,171.80 01/01/25 5,862 1.78 606 52,171.80 658,171.80 710,343.60 07/01/25 46,778.40 46,778.40 O1 /01/26 5,256 1.78 617 46,778.40 663,778.40 710,556.80 07/01 /26 41,287.10 41,287.10 01/01/27 4,639 1.78 628 41,287.10 669,287.10 710,574.20 07/01/27 35,697.90 35,697.90 01/01/28 4,011 1.78 639 35,697.90 674,697.90 710,395.80 07/01/28 30,010.80 30,010.80 01/01/29 3,372 1.78 650 30,010.80 680,010.80 710,021.60 07/01/29 24,225.80 24,225.80 01/01/30 2,722 1.78 662 24,225.80 686,225.80 710,451.60 07/01 /30 18,334.00 18,334.00 01/01/31 2,060 1.78 675 18,334.00 693,334.00 711,668.00 07/01/31 12, 326.50 12,326.50 . 01/01/32 1,385 1.78 687 12,326.50 699,326.50 711,653.00 07/01/32 6,212.20 6,212.20 01/01/33 698 1.78 698 6,212.20 704,212.20 710,424.40 Totals $11,865 $2,353,057.65 $14,218,057.65 $14,218,057.65 * Assumes the blended SRF subsidized interest rate of 2.0% on $10,000,000 and 3.25% on $1,830,000 less .5% eligible credit. (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 11 ■ JEFFERSONVILLF, (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF COMBINED BOND AMORTIZATION 2008 2009 2009 Payment 1999 2003 2005 SRF SRF Refunding Date Bonds Bonds Bonds Bonds Bonds Bonds Subtotal 01/01/13 $183,778.21 $195,488.75 $192,780.63 $403,546.45 $78,362.60 $435,043.75 $1,489,000.39 07/01/13 23,295.47 47,443.75 131,655.63 142,601.50 23,385.20 45,231.25 413,612.80 01/01/14 182,497.47 197,443.75 196,655.63 405,601.50 79,385.20 445,231.25 1,506,814.80 07/01/14 20,987.04 44,256.25 130,355.63 138,564.45 22,371.60 39,731.25 396,266.22 01/01/15 187,130.04 199,256.25 195,355.63 413,564.45 80,371.60 449,731.25 1,525,409.22 07/01/15 18,577.97 40,923.75 129,055.63 134,343.20 21,321.80 33,581.25 377,803.60 01/01/16 182,539.97 205,923.75 194,055.63 417,343.20 82,321.80 458,581.25 1,540,765.60 I 07/01/16 16,200.52 37,335.00 127,755.63 129,999.15 20,217.70 26,675.00 358,183.00 01/01/17 184,042.52 207,335.00 197,755.63 420,999.15 83,217.70 466,675.00 1,560,025.00 07/01/17 13,766.81 33,595.00 126,355.63 125,532.30 19,077.40 18,700.00 337,027.14 01/01/18 181,500.81 213,595.00 196,355.63 426,532.30 84,077.40 473,700.00 1,575,761.14 07/01/18 11,334.67 29,545.00 124,955.63 120,911.95 17,900.90 9,600.00 314,248.15 01/01/19 180,082.67 214,545.00 204,955.63 426,911.95 84,900.90 489,600.00 1,600,996.15 07/01/19 8,887.82 25,336.25 123,355 63 116,214.85 16,688.20 290,482.75 01/01/20 621,840.82 220,336.25 278,355.63 436,214.85 86,688.20 1,643,435.75 07/01/20 20,851.25 120,255.63 111,302.85 15,421.20 267,830.93 01/01/21 225,851.25 915,255.63 437,302.85 87,421.20 1,665,830.93 07/01/21 16,033.75 104,355.63 106,298.75 14,118.00 240,806.13 01/01/22 231,033.75 929,355.63 443,298.75 89,118.00 1,692,806.13 07/01/22 10,927.50 87,855.63 101,125.80 12,760.50 212,669.43 01/01/23 235,927.50 952,855,63 441,125.80 90,760.50 1,720,669.43 07/01/23 5,640.00 70,015.00 95,906.80 11,348.70 182,910.50 01/01/24 240,640.00 970,015.00 447,906.80 91,348.70 1,749,910.50 07/01/24 51,340.00 90,503.60 9,900.70 151,744.30 01/01/25 1,241,340.00 447,503.60 92,900.70 1,781,744.30 07/01/25 26,350.00 85,023.65 8,398.40 119,772.05 01/01/26 1,266,35000 453,023.65 94,398.40 1,813,772.05 07/01/26 79,374.85 6,841.80 86,2 16.65 01/01/27 1,751,374.85 95,841.80 1,847,216.65 07/01/27 53,709.65 5,230.90 58,940.55 01/01/28 1,776,709.65 98,230.90 1,874,940.55 07/01/28 27,261.60 3,547.60 30,809.20 01/01/29 1,803,261.60 99,547.60 1,902,809.20 07/0 1 /29 1,8 10.00 1 ,810.00 01/01/30 101,810.00 101,810.00 07/01/30 01/01/31 07/01/31 01/01/32 07/01/32 01/01/33 Totals 52,016,462.81 $2,899,263.75 $9,285,103.23 $13,010,896.35 $1,831,043.80 $3,392,081.25 532,434,851.19 (Continued on next page) (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 12 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SCHEDULE OF COMBINED BOND AMORTIZATION 2010 Payment Prior SRF 2010 B 2010 C 2011 A 2011 B 2011 C Outstanding Date Subtotal Bonds Bonds • Bonds SRF Bonds SRF Bonds SRF Bonds Total (BAB) 01/01/13 $1,489,000.39 $127,992.00 $327,449.69 S886,950.00 $864,490.00 $39,000.00 $158,235.00 $3,893,117.08 07/01113 413,612.80 21,984.00 327,449.69 33,500.00 291,919.00 58,235.00 1,246,700.49 01/01/14 1,506,814.80 126,984.00 327,449.69 893,500.00 876,919.00 39,000.00 1,043,235.00 4,813,902.49 07/01/14 396,266.22 20,976.00 327,449.69 24,040.00 284,080.00 151,420,50 1,204,232.41 01/01 /15 1,525,409.22 130,976.00 327,449.69 904,040.00 879,080.00 39,000.00 1,050,420.50 50,420.50 1,856,378.4 07/01/15 377,803.60 19,920.00 327,449.69 12,600.00 276,107.00 01/01/16 1,540,765.60 129,920.00 327,449.69 912,600.00 891,107.00 39,000.00 1,057,498.20 4,898,340.49 07/01/16 358,183.00 18,864.00 327,449.69 267,866.00 137,468.10 1,109,830.79 01/01/17 1,560,025.00 133,864.00 1,252,449.69 897,866.00 39,000.00 1,064,468.10 4,947,672.79 07/01/17 331,027.14 17,760.00 316,927.81 259,424.00 130,330.20 1,061,469.15 01/01/18 1,575,761.14 132,760.00 1,266,927.81 909,424.00 39,000.00 1,071,330.20 4,995,203.15 07/01/18 314,248.15 16,656.00 304,577.81 250,714.00 123,084.50 1,009,280.46 01/01/19 1,600,996.15 136,656.00 1,274,577.81 920,714.00 39,000.00 1,079,084.50 5,051,028.46 07/01/19 290,482.75 15,504.00 290,391.56 241,736.00 115,723.30 953,837.61 01 /01 /20 1,643,435.75 135,504.00 1,290,391.56 911,736.00 39,000.00 1,085,723,30 5,105,790.61 07/01/20 267,830.93 14,352.00 274,791.56 232,758.00 108,254.30 897,986.79 01/01/21 1,665,830.93 139,352.00 1,304,791.56 917,758.00 39,000.00 1,093,254.30 5,159,986.79 07/01/21 240,806.13 13, 1 52.00 258,054.06 223,579.00 100,669.80 836,260.99 01/01/22 1,692,806.13 138,152.00 1,318,054.06 933,579.00 39,000.00 1,100,669.80 5,222,260.99 07/01/22 212,669.43 11,952.00 239,967,81 214,065.00 92,969.80 771,624.04 01/01/23 1,720,669.43 141,952.00 1,334,967.81 944,065.00 39,000.00 1,108,969.80 5,289,624.04 07/01/23 182,910.50 10,704.00 220,394.69 204,283.00 85,146.60 703,438.79 01/01/24 1,749,910.50 140,704.00 1,355,394.69 954,283.00 39,000.00 1,116,146,60 5,355,438.79 07/01/24 151,744.30 9,456.00 199,184.37 1 94,233.00 77,207.90 631,825.57 01/01/25 1,781,744.30 139,456.00 1,374,184.37 969,233.00 38,000.00 1,124,207.90 5,426,825.57 07/01/25 119,772.05 8,208.00 176,271.87 183,848.00 69,146.00 557,245.92 01/01/26 1,813,772.05 143,208.00 1,391,271.87 983,848.00 38,000,00 1,132,146.00 5,502,245.92 07 /01 /26 86,216.65 6,912.00 151,592.19 173,128.00 60,960.90 478,809.74 01/01/27 1,847,216.65 146,912.00 1,411,592.19 993,128.00 38,000.00 1,140,960.90 5,577,809.74 07/01/27 58,940.55 5,568.00 124,974.69 162,140.00 52,644.90 404,268.14 01/01/28 1,874,940.55 145,568.00 1,429,974.69 1,017,140.00 38,000.00 1,148,644.90 5,654,268.14 07/01/28 30,809.20 4,224.00 96,346.25 150,683.00 44,205.70 326,268.15 01/01/29 1,902,809.20 149,224.00 1,451,346.25 1,030,683.00 38,000.00 1,157,205.70 5,729,268.15 07/01/29 1,810.00 2,832.00 65,520.00 138,891.00 35,635.60 244,688.60 01/01/30 101,810.00 147,832.00 1,475,520.00 2,883,891.00 38,000.00 1,165,635.60 5,812,688.60 07/01/30 1,440.00 33,442.50 102,108.00 26,934.60 163,925.10 01/01/31 151,440.00 1,503,442.50 3,027,108.00 38,000.00 1,174,934.60 5,894,925.10 07/01/31 62,913.00 18,095.00 81,008,00 01/01/32 4,757,913.00 38,000.00 1,184,095.00 5,980,008.00 9,116.80 9,116.80 011 /01 /33 07/01/32 1,193,116.80 /01/33 1 Totals $32,434,851.19 $2,858920.00 $25,806,921.55 $3,667,230.00 $30,478,440.00 $772,000.00 824,191,730.40 $120,210 Shown net of 35% subsidy payment from the United States Treasury. (Continued on next page) (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 13 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) SCHEDULE OF COMBINED BOND AMORTIZATION (Outstanding and Proposed Bonds) Outstanding Proposed Net Add Back: Gross Payment Prior Outstanding Bond Year 2012 Net Bond Year BAB Debt Service Bond Year Date Subtotal Total Total SRI; Bonds Total Total Subsidy Payment Totals 01/01/13 S3,893,I 17.08 $3,893,117.08 3,893,117.08 $3,893,117.08 $3,893,117.08 $176,319.06 $4,069,436.14 07/01/13 1,246,700.49 1,246,700.49 $ 1 16,158.35 1,362,858.84 01/01/14 4,813,902.49 4,813,902.49 6,060,602.98 595,598.50 5,409,500.99 6,772,359.83 352,638.12 7,124,997.95 07/01/14 1.204,232.41 1,204,232.41 101,237.50 1,305,469.91 01/01/15 4,856,375.41 4,856,375.41 6,060,607.82 610,237.50 5,466,612.91 6,772,082.82 352,638.12 7,124,720.94 07/01 /15 1,158,378.49 1,158,378.49 96,707.40 1,255,085.89 01/01/16 4,898,340.49 4,898,340.49 6,056,718.98 614,707.40 5,513,047.89 6,768,133.78 352,638.12 7,120,771.90 07/01/16 1,109,830.79 1,109,830.79 92,097.20 1,201,927.99 01/01/17 4,947,672.79 4,947,672.79 6,057,503.58 620,097 20 5,567,769.99 6,769,697.98 352,638.12 7,122,336.10 07/01/17 1,061,469.15 1,061,469.15 87,398.00 1,148,867.15 01 /01 /18 4,995,203.15 4,995,203.15 6,056,672.30 623,398.00 5,618,601.I5 6,767,468.30 341,306.88 7,108,775.18 07/01/18 1,009,280.46 1,009,280.46 82,627.60 1,091,908.06 01/01/19 5,051,028.46 5,051,028.46 6,060,308.92 628,627.60 5,679,656.06 6,771,564.12 328,006.88 7,099,571.00 07/01/19 953,837.61 953,837.61 77,768,20 1,031,605.81 01/01/20 5,105,790.61 5,105,790.61 6,059,628.22 632,768.20 5,738,558.81 6,770,164.62 312,729.38 7,082,894.00 07/01/20 897,986.79 897,986.79 72,828.70 970,815.49 01/01/21 5, 159,986.79 5,159,986.79 6,057,973.58 637,828.70 5,797,815.49 6,768,630.98 295,929.38 7,064,560.36 07/01/21 836,260.99 836,260.99 67,800.20 904,061.19 01/01/22 5,222,260.99 5,222,260.99 6,058,521.98 643,800.20 5,866,061.19 6,770,122.38 277,904.38 7,048,026.76 07/01/22 771,624.04 771,624.04 62,673 80 834,297.84 01/01/23 5,289,624.04 5,289,624.04 6,061,248.08 647,673.80 5,937,297.84 6,771,595.68 258,426.88 7,030,022.56 07/01/23 703,438.79 703,438.79 57,467.30 760,906.09 01/01/24 5,355,438.79 5,355,438.79 6,058,877.58 652,467.30 6,007,906.09 6,768,812.18 237,348.12 7,006,1 60.30 07/01/24 631,825.57 631,825.57 52,171.80 683,997.37 01/01/25 5,426,825.57 5,426,825.57 6,058,651.14 658,171.80 6,084,997.37 6,768,994.74 214,506.26 6,983,501.00 07/01/25 557,245.92 557,245.92 46,778.40 604,024.32 01/01/26 5,502,245.92 5,502,245.92 6,059,491.84 663,778.40 6,166,024.32 6,770,048.64 189,831.26 6,959,879.90 07/01/26 478,809.74 478,809.74 41,287.10 520,096.84 01/01/27 5,577,809.74 5,577,809.74 6,056,619.48 669,287.10 6,247,096.84 6,767,193.68 163,253.12 6,930,446.80 07/01/27 404,268.14 404,268.14 35,697.90 439,966.04 01/01/28 5,654,268.14 5,654,268.14 6,058,536.28 674,697.90 6,328,966.04 6,768,932.08 134,588.12 6,903,520.20 07/01/28 326,268.15 326,268.15 30,010.80 356,278.95 01/01/29 5,729,268.15 5,729,268.15 6,055,536.30 680,010.80 6,409,278.95 6,765,557.90 103,757.50 6,869,315.40 07/01/29 244,688.60 244,688.60 24,225.80 268,914.40 01/01/30 5,812,688.60 5,812,688.60 6,057,377.20 686,225.80 6,498,914.40 6,767,828.80 70,560.00 6,838,388.80 07/01/30 163,925.10 163,925.10 18,334.00 182,259.10 01/01/31 5,894,925.10 5,894,925.10 6,058,850.20 693,334.00 6,588,259.10 6,770,518.20 36,015.00 6,806,533.20 07/01/31 81,008.00 81,008.00 12,326.50 93,334.50 01/01/32 5,980,008.00 5,980,008.00 6,061,016.00 699,326.50 6,679,334.50 6,772,669.00 6,772,669.00 07/01/32 9,1 16.80 9,1 16.80 6,212.20 15,329.00 01/01/33 1,193,1 16.80 1,193,1 16.80 1,202,233.60 704,212.20 1,897,329.00 1,912,658.00 1,912,658.00 Totals 5120,210,093.14 $120,210,093.14 $120,210,093.14 $14,218,057.65 $134,428,150.79 $134,428,150.79 $4,551,034.70 $138,979,185.49 Average annual debt service for the five bond years ending January 1, 2018. $6,769,948.54 $7,120,320.41 (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 14 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF PRESENT AND FUTURE SEWAGE RATES AND CHARGES Phase II Phase 11I Phase IV Phase V Effective (Current Rates) (1/1/2013) (1/1/20I4) (1 /1/2015) Across - The -Board Rate increase 9.6% 9.6% 9.6% 9.7% All Users (1) Metered Consumption: (Monthly Rate per 100 Cubic Feet) First 1,000 Cubic Feet $7.63 $8.36 $9.16 $10.05 Next 10,000 Cubic Feet 7.10 7.78 8.53 9.36 Over 11,000 Cubic Feet 6.55 7.18 7.87 8.63 Minimum Charge Per Month: $26.48 $29.01 $31.79 $34.87 Unmetered Water Consumption: Single family residential users $55.24 $60.53 $66.32 $72.76 STORMWATER RATES AND CHARGES (2) Residential $3.50 Non - Residential $3.50 * The charge for non - residential users shall be $3.50 times the number of equivalent drainage units, impervious area of the user and set forth in a schedule adopted by the Board prior determined by the to the effective date of the rate ordinance. (1) Current rates and charges were approved pursuant to Ordinance No. 2009 -OR-43 and became effective on January 1, 2012. (2) Current rates and charges were approved pursuant to Ordinance No. 2000 -OR -40 and became effective on July I, 2001. (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 17 JEFFERSONVILLE SEWAGE WORKS Jeffersonville, Indiana SUPPLEMENTAL DATA JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) COMPARATIVE STATEMENT OF NET ASSETS As of As of LIABILITIES: 12/31 /09 12/31 /10 12/31 /11 06/30/12 Current Liabilities: Accounts payable $393,005 $1,132,173 $739,163 S733,244 Contracts payable 333,362 333,362 313,587 303,979 Interfund payable 10,995 - 349 497 Capital lease payable (due within one year) - 222,789 233,705 233,705 Retainage payable 180,021 134,378 118,691 93,052 Accrued interest payable - 232,346 - - Bond anticipation notes payable 4,000,000 - - - Bonds payable (due within one year) 1,371,417 1,962,415 2,009,189 2,009,189 Total Current Liabilities 6,288,800 4,017,463 3,414,684 3,373,666 Noncurrent Liabilities: Bonds payable 24,024,345 44,234,350 53,345,704 64,796,917 Deferral of loss on refunding (299,765) (236,628) (172,376) (137,957) Capital lease obligations 755,864 918,574 684,868 535,354 Total Noncurrent Liabilities 24,480,444 44,916,296 53,858,196 65,194,314 Total Liabilities $30,769,244 $48,933,759 $57,272,880 $68,567,980 NET ASSETS Invested in Capital Assets, Net of Related Debt $18,110,226 $9,910,188 $20,765,273 $22,137,404 Restricted 7,780,181 21,880,740 13,964,510 14,905,163 Unrestricted 1,907,937 1,917,706 3,789,592 4,099,023 Total Net Assets $27,798,344 $33,708,634 $38,519,375 $41,141,590 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 17 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Calendar Year 6 Months Ended 2009 2010 2011 6/30/12 Operating Revenues: Sewer $5,533,275 $10,129,578 $11,578,682 $5,678,984 1,267,511 1,292,849 1,316,379 619,762 Drnaee 98 236,315 287,766 173,155 Penalties Total Operating Revenues 6,899,668 11,658,742 13,182,827 6,471,901 Operating Expenses: 1,424,526 2,335,633 2,520,242 1,251,875 Employee and wages 322,569 1,060,033 1,500,298 213,479 Employee benefits 534,521 510,316 554,659 329,548 Purchased power Materials and supplies 509,214 512,054 546,573 360,89 67,246 114,669 194,649 101,975 Transportation 449,489 248,320 Repairs and maintenance 529,889 637,844 Sludge removal 94,509 99,638 98,858 86,729 Contractual services 462,426 643,121 851,366 398,5 Office supplies 283,634 133,996 271,649 112,175 Insurance 1, I34 65,990 120,737 575 Other 224,096 194,308 343,287 106,173 Sub - totals 4,453,764 6,307,602 7,451,807 3,210,307 Depreciation expense 1,467,625 1,067,061 1,086,867 543,434 Total Operating Expenses 5,921,389 7,374,663 8,538,674 3,753,741 Net Operating Income 978,279 4,284,079 4,644,153 2,718,160 Nonoperating Income: 68,208 39,235 79,402 16,332 Interest income 398,130 Inspection /tap /availability fees 702,954 392,979 697,839 389,861 194,93 31 I BAB debt service subsidy payment 448,754 38 29 Other income Total nonoperating income 771,162 880,968 1,574,248 894,896 Nonoperating Expenses: 1,183,857 1,269,116 2,229,968 1,217,069 Interest expense 33,383 51,670 149,363 74,681 Amortization expense Total nonoperating expenses 1,217,240 1,320,786 2,379,331 1,291,750 Net Income Before Contributions and Transfers 532,201 3,844,261 3,839,070 2,321,306 Capital Contributions and (Transfers): Contributed capital 254,736 1,081,064 640,741 300,909 Totals 254,736 1,081,064 640,741 300,909 Change In Net Assets 786,937 4,925,325 4,479,811 2,622,215 Net Assets - Beginning 27,007,541 27,798,344 33,708,634 38,519,375 Net Assets - Adjustment* 3,866 984,965 330,930 , Total Net Assets - Ending $27,798,344 $33,708,634 $38,519,375 $41,141,590 * Comprised of transfers, reimbursements and prior year corrections. (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 18 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS COMPARATIVE STATEMENT OF CASH FLOWS Increase (Decrease) in Cash 6 Months Calendar Year Ended 2009 2010 2011 6/30/12 Cash flows from operating activities: Cash received from customers $7,823,047 $10,267,967 $12,679,045 $7,137,191 Cash paid to suppliers, employees and others (4.300,570) (5,717,536) (7,879,930) (3,251,247) Net cash from operating activities 3.522,477 4,550,431 4,799,1 15 3,885,944 Cash flows from capital and related financing activities: Additions to capital assets (9,542,166) (8,855,942) (21,249,443) (13,441,458) Principal paid on revenue bonds (1.440,835) (1,947,640) (1,867,683) - Revenue bond proceeds from 1998 Bond refinancing 3,725,000 - - - Revenue bond proceeds from 2010 Bonds - 20,840,000 - - SRF Bond drawdowns 74,157 1,908,643 1 1,025,81 1 11,451,213 BAN proceeds 4.000,000 (4,000,000) - - Refinancing of 1998 Bonds (3.660,000) - - - Additions to Capital (Capital Lease) 755,864 557,583 - - Capital Lease Payments - (172,084) (222,790) (149,514) Interest paid on bonds (1,423,256) (1,036,770) (2,462,314) (1,217,069) Deferred debits (112,614) (500,852) 64,252 34,418 Net asset adjustment 3,866 984,965 330,930 - Other, tap, inspection and availability fee income 702,954 841,733 1,104,985 683,633 BAB subsidy credit - - 389,861 194,931 Contributions 254,736 1,081,064 640,741 300,909 Net cash from capital and related financing activities (6,662,294) 9,700,700 (1 2,245,650) (2,142,937) Cash flows from investing activities: Interest income 68,208 39,235 79,402 16,332 Cash and Cash Equivalents: Increase (decrease) (3,071,609) 14,290,366 (7,367,133) 1,759,339 Beginning balance 12,912,641 9,841,032 24,131,398 16,764,265 Ending balance $9,841,032 $24,131,398 $16,764,265 $18,523,604 (Continued on next page) (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 19 NNW JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) COMPARATIVE STATEMENT OF CASH FLOWS Increase (Decrease) in Cash 6 Months Calendar Year Ended 2009 2010 2011 6/30/12 Reconciliation of net operating revenues to cash provided from operations: Net operating revenues $978,279 $4,284,079 $4,644,153 $2,718,160 Adjustments to reconcile net operating revenue to net cash provided from operating activities: Depreciation expense 1,467,625 1,067,061 1,086,867 543,434 Change in assets and liabilities Decrease (increase) in: Accounts receivable 923,379 (976,523) (750,930) 498,186 Lien receivable - (414,252) 247,148 167,104 Interfund receivable - (78) - 78 Prepaid expenses - (92,386) - - Increase (decrease) in: Accounts payable 148,764 739,168 (393,010) (5,919) Contracts payable 67,518 - (19,775) (9,608) Retainage payable (51,630) (45,643) (15,687) (25,639) Interfund payable (I 1 ,458) (10,995) 349 148 Net cash provided from operations $3,522,477 $4,550,431 $4,799,115 $3,885,944 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 20 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS COMPARISON OF ACCOUNT BALANCES WITH MINIMUM BALANCES REQUIRED Account Minimum Balance at Balance Accounts: 6/30/2012 Required (1) Ref. Variance Operation and maintenance fund $3,618,441 $1,111,456 (2) $2,506,985 Sinking fund: Bond and interest account 2,298,410 1,306,595 (3) 991,815 Reserve account 3,083,471 3,078,348 (4) 5,123 Construction Account 9,523,282 9,523,282 (5) - Totals $18,523,604 $15,019,681 $3,503,923 (1) Minimum balance required by Bond Ordinance No. 2011- OR -73, as amended. (2) The balance maintained in this fund shall be sufficient to pay the expenses of operation, repair and maintenance of the then next succeeding two calendar months. Projected operating expenses for calendar year 2012 $6,667,400 Times two month factor 0.1667 Minimum balance required $1,111,456 (Continued on next page) (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 21 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS (Cont'd) COMPARISON OF ACCOUNT BALANCES WITH MINIMUM BALANCES REQUIRED (3) The balance of this account should be equal to the accrued monthly transfers of 1/6 of the interest on all outstanding bonds payable on the then next succeeding interest payment date and 1 /12th of the principal on all outstanding bonds payable on the then next succeeding principal payment date. Months Amount Factor Balance Principal due 1/1/13 I999 Revenue Bonds $158,189 6/12 $79,095 2003 Revenue Bonds 145,000 6/12 72,500 2005 Revenue Bonds 60,000 6/12 30,000 2008 SRF Revenue Bonds 257,000 6/12 128,500 2009 SRF Revenue Bonds 54,000 6/12 27,000 2009 Refunding Bonds 385,000 6/12 192,500 2010 SRF Revenue Bonds 105,000 6/12 52,500 v 2010 B Revenue Bonds - 6/12 - 2010 C Revenue Bonds 845,000 6/12 422,500 2011 A Revenue Bonds 565,000 6/12 282,500 2011 B Revenue Bonds 39,000 6/12 19,500 2011 C Revenue Bonds - 6/12 - Sub -total 1,306,595 Interest due 1/1/13 1999 Revenue Bonds 25,589 0/6 - 2003 Revenue Bonds 50,489 0/6 - 2005 Revenue Bonds 132,781 0/6 - 2008 SRF Revenue Bonds 146,546 0/6 - 2009 SRF Revenue Bonds 24,363 0/6 - 2009 Refunding Bonds 50,044 0/6 - 2010 SRF Revenue Bonds 22,992 0/6 - 2010 B Revenue Bonds 503,769 0/6 - 2010 C Revenue Bonds 41,950 0/6 - 2011 A Revenue Bonds 299,490 0/6 - 2011 B Revenue Bonds - 0/6 - 2011 C Revenue Bonds 158,235 0/6 - Sub -total 0 Minimum balance required $1,306,595 (4) The Reserve Account should be equal to the maximum annual principal and interest requirement . of all the outstanding bonds or $6,413,246 when fully funded by November 30, 2016. Minimum balance required $3,078,348 (5) Construction account is restricted for sewage improvement projects. (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 22 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF S1,764,773 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS, SERIES 1999 Principal payable annually January 1st. Interest payable semi - annually January 1st and July 1st. Interest rates as indicated Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In Dollars) ( %) ( In Dollars ) 01/01/13 $1,764,773 2.90 $158,189 $25,589.21 $183,778.21 $183,778.21 07/01/13 23,295.47 23,295.47 01/01/14 1,606,584 2.90 159,202 23,295.47 182,497.47 205,792.94 07/01/14 20,987.04 20,987.04 01/01/15 1,447,382 2.90 166,143 20,987.04 187,130.04 208,117.08 07/01/15 18,577.97 18,577.97 01/01/16 1,281,239 2.90 163,962 18,577.97 182,539.97 201,117.94 07/01/16 16,200.52 16,200.52 01/01/17 1,117,277 2.90 167,842 16,200.52 184,042.52 200,243.04 07/01/17 13,766.81 13,766.81 01/01/18 949,435 2.90 1 67,734 13,766.81 181 ,500.81 195,267.62 07/01/18 11,334.67 11,334.67 01/01/19 781,701 2.90 1 68,748 11,334.67 180,082.67 191,417.34 07/01/19 8,887.82 8,887.82 01/01/20 612,953 2.90 612,953 8,887.82 621,840.82 630,728.64 Totals $1,764,773 $251 ,689.81 $2,01 6,462.81 $2,016,462.81 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 23 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $2,225,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS, SERIES 2003 Principal payable annually January 1st. Interest payable semi - annually January 1st and July 1st. Interest rates as indicated Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 01/01/13 $2,225 4.20 $145 $50,488.75 $195,488.75 $195,488.75 07/01/13 47,443.75 47,443.75 01/01/14 2,080 4.25 150 47,443.75 197,443.75 244,887.50 07/01/14 44,256.25 44,256.25 01/01/15 1,930 4.30 155 44,256.25 199,256.25 243,512.50 07/01/15 40,923.75 40,923.75 01/01/16 1,775 4.35 165 40,923.75 205,923.75 246,847.50 07/01/16 37,335.00 37,335.00 01/01/17 1,610 4.40 170 37,335.00 207,335.00 244,670.00 07/01/17 33,595.00 33,595.00 01/01/18 1,440 4.50 180 33,595.00 213,595.00 247,190.00 07/01/18 29,545.00 29,545.00 01/01/19 1,260 4.55 185 29,545.00 214,545.00 244,090.00 07/01/19 25,336.25 25,336.25 01/01/20 1,075 4.60 195 25,336.25 220,336.25 245,672.50 07/01/20 20,851.25 20,851.25 01/01/21 880 4.70 205 20,851.25 225,851.25 246,702.50 07/01/21 16,033.75 16,033.75 01/01/22 675 4.75 215 16,033.75 231,033.75 247,067.50 07/01/22 10,927.50 10,927.50 01/01/23 460 4.70 225 10,927.50 235,927.50 246,855.00 07/01/23 5,640.00 5,640.00 01/01/24 235 4.80 235 5,640.00 240,640.00 246,280.00 Totals $2,225 $674,263.75 $2,899,263.75 $2,899,263.75 w (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 24 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF' AMORTIZATION OF $6,445,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2005, SERIES A Principal payable annually January 1st. Interest payable semi - annually January 1st and July 1st. Interest rates as indicated Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 01/01/13 $6,445 3.750 $60 $132,780.63 $192,780.63 $192,780.63 07/01/13 131,655.63 131,655.63 01/01/14 6,385 4.000 65 131,655.63 196,655.63 328,311.26 07/01/14 130,355.63 130,355.63 01/01/15 6,320 4.000 65 130,355.63 195,355.63 325,711.26 07/01/15 129,055.63 129,055.63 01/01/16 6,255 4.000 65 129,055.63 194,055.63 323,111.26 07/0 1 /16 1 27,755.63 1 27,755.63 01/01/17 6,190 4.000 70 127,755.63 197,755.63 325,511.26 07/01 /17 1 26,355.63 1 26,355.63 01/01/18 6,120 4.000 70 126,355.63 196,355.63 322,711.26 07/01/18 124,955.63 124,955.63 01/01/19 6,050 4.000 80 124,955.63 204,955.63 329,911.26 07/01/19 123,355.63 123,355.63 01/01/20 5,970 4.000 155 123,355.63 278,355.63 401,711.26 07/01/20 120,255.63 120,255.63 01/01/21 5,815 4.000 795 120,255.63 915,255.63 1,035,511.26 07/0 1 /21 1 04,355.63 104,355.63 01/01/22 5,020 4.000 825 104,355.63 929,355.63 1,033,711.26 07/01/22 87,855.63 87,855.63 01/01/23 4,195 4.125 865 87,855.63 952,855.63 1,040,711.26 07/01/23 70,015.00 70,015.00 01/01/24 3,330 4.150 900 70,015.00 970,015.00 1,040,030.00 07/01/24 51,340.00 51,340.00 01/01/25 2,430 4.200 1,190 51,340.00 1,241,340.00 1,292,680.00 07/01/25 26,350.00 26,350.00 01/01/26 1,240 4.250 1,240 26,350.00 1,266,350.00 1,292,700.00 Totals $6,445 $2,840,103.23 $9,285,103.23 $9,285,103.23 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 25 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $9,547,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2008 Principal payable annually January 1st. Interest payable semi- annually, January 1st and July 1st. Interest rates as indicated Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In 1,000's) ( %) (In 1,000's) ( In Dollars ) k 01 /01/13 $9,547 3.07 $257 $146,546.45 $403,546.45 $403,546.45 07/01/13 142,601.50 142,601.50 01/01/14 9,290 3.07 263 142,601.50 405,601.50 548,203.00 07/01/14 138,564.45 138,564.45 01/01/15 9,027 3.07 275 138,564.45 413,564.45 552,128.90 - 07/01/15 134,343.20 134,343.20 01/01/16 8,752 3.07 283 134,343.20 417,343.20 551,686.40 07/01/16 129,999.15 129,999.15 01 /01/17 8,469 3.07 291 129,999.15 420,999.15 550,998.30 07/01/17 125,532.30 125,532.30 01 /01/18 8,178 3.07 301 125,532.30 426,532.30 552,064.60 07/01/18 120,911.95 120,911.95 01/01/19 7,877 3.07 306 120,911.95 426,911.95 547,823.90 07/01/19 116,214.85 116,214.85 01 /01/20 7,571 3.07 320 116,214.85 436,214.85 552,429.70 07/01/20 111,302.85 111,302.85 01/01/21 7,251 3.07 326 111,302.85 437,302.85 548,605.70 07/01/21 106,298.75 106,298.75 01/01/22 6,925 3.07 337 106,298.75 443,298.75 549,597.50 07/01/22 101,125.80 101,125.80 01/01/23 6,588 3.07 340 101,125.80 441,125.80 542,251.60 07/0I/23 95,906.80 95,906.80 01/01/24 6,248 3.07 352 95,906.80 447,906.80 543,813.60 07/01 /24 90,503.60 90,503.60 01/01/25 5,896 3.07 357 90,503.60 447,503.60 538,007.20 07/01/25 85,023.65 85,023.65 01/01/26 5,539 3.07 368 85,023.65 453,023.65 538,047.30 07/01/26 79,374.85 79,374.85 01/01/27 5.171 3.07 1.672 79,374.85 1,751,374.85 1,830,749.70 07/01/27 53,709.65 53,709.65 01/01/28 3,499 3.07 1,723 53,709.65 1,776,709.65 1,830,419.30 07/01/28 27,261.60 27,261.60 01/01/29 1,776 3.07 1,776 27,261.60 1,803,261.60 1,830,523.20 Totals $9,547 $3,463,896.35 $13,010,896.35 $13,010,896.35 • (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 26 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $1,346,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2009, SERIES A Principal payable annually January 1st. Interest payable semiannually, January 1st and July 1st. Interest rate as indicated. Payment Principal Interest Principal Debt Service Bond Year Date Balance Rate Balance Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 1/1/2013 $1,346 3.62 $54 $24,362.60 * $78,362.60 $78,362.60 7/1/2013 23,385.20 23,385.20 1/1/2014 1,292 3.62 56 23,385.20 79,385.20 102,770.40 7/1/2014 22,371.60 22,371.60 1/1/2015 1,236 3.62 58 22,371.60 80,371.60 102,743.20 7/1/2015 21,321.80 21,321.80 ®. 1/1/2016 1,178 3.62 61 21,321.80 82,321.80 103,643.60 7/1/2016 20,217.70 20,217.70 1/1/2017 1.117 3.62 63 20,217.70 83,217.70 103,435.40 7/1/2017 19,077.40 19,077.40 1/1/2018 1.054 3.62 65 19,077.40 84,077.40 103,154.80 7/1/2018 17,900.90 17,900.90 1/1/2019 989 3.62 67 17,900.90 84,900.90 102,801.80 7/1/2019 16,688.20 16,688.20 1/1/2020 922 3.62 70 16,688.20 86,688.20 103,376.40 7/1/2020 15,421.20 15,421.20 1/1/2021 852 3.62 72 15,421.20 87,421.20 102,842.40 7/1/2021 14,118.00 14,118.00 1/1/2022 780 3.62 75 14,11 8.00 89,118.00 103,236.00 7/1/2022 12,760.50 12,760.50 1/1/2023 705 3.62 78 12,760.50 90,760.50 103,521.00 7/1/2023 11,348.70 11,348.70 1/1/2024 627 3.62 80 11,348.70 91,348.70 102,697.40 7/1/2024 9,900.70 9,900.70 1/1/2025 547 3.62 83 9,900.70 92,900.70 102,801.40 7/1/2025 8,398.40 8,398.40 1/1/2026 464 3.62 86 8,398.40 94,398.40 102,796.80 7/1/2026 6,841.80 6,841.80 1/1/2027 378 3.62 89 6,841.80 95,841.80 102,683.60 7/1/2027 5,230.90 5,230.90 1/1/2028 289 3.62 93 5,230.90 98,230.90 103,461.80 7/1/2028 3,547.60 3,547.60 1/1/2029 196 3.62 96 3,547.60 99,547.60 103,095.20 7/1/2029 1,810.00 1,810.00 1/1/2030 100 3.62 100 1,810.00 101,810.00 103,620.00 Totals $1,346 $485,043.80 $1,831,043.80 $1,831,043.80 * Subject to actual draws. (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 27 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $2,995,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REFUNDING REVENUE BONDS OF 2009 Principal payable annually January lst. Interest payable semi - annually January 1st and July 1st. Interest rates as indicated. Payment Principal Interest Debt Service Bond Year Date Outstanding Rate Principal Interest Total Total (In $1,000's) ( %) (In $ 1,000's) ( In Dollars ) 01/01/13 $2,995 2.500 $385 $50,043.75 $435,043.75 $435,043.75 07/01/13 45,231.25 45,231.25 01/01/14 2,610 2.750 400 45,231.25 445,231.25 490,462.50 07/01/14 39,731.25 39,731.25 01/01/15 2,210 3.000 410 39,731.25 449,731.25 489,462.50 07/01/15 33,581.25 33,581.25 r , 01/01/16 I,800 3.250 425 33,581.25 458,581.25 492,162.50 07/01 /16 26,675.00 26,675.00 01/01/17 1,375 3.625 440 26,675.00 466,675.00 493,350.00 07/01/17 18,700.00 18,700.00 01/01/18 935 4.000 455 18,700.00 473,700.00 492,400.00 07/01/18 9,600.00 9,600.00 01/01/19 480 4.000 480 9,600.00 489,600.00 499,200.00 Totals $2,995 S397,081.25 $3,392,081.25 $3,392,081.25 • (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 28 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $2,395,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2010, SERIES A Principal payable annually January 1st. Interest payable semiannually, January 1st and July 1st. Interest rates as indicated. Payment Principal Interest Debt Service Bond Year Date Balance Rates Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 1/1/2013 $2,395 1.92 $105 $22,992.00 $127,992.00 $127,992.00 7/1/2013 21,984.00 21,984.00 1/1/2014 2,290 1.92 105 21,984.00 126,984.00 148,968.00 7/1/2014 20,976.00 20,976.00 1/1/2015 2,185 1.92 110 20,976.00 130,976.00 151,952.00 7/1/2015 19,920.00 19,920.00 t 1/1/2016 2,075 1.92 110 19,920.00 129,920.00 149,840.00 7/1/2016 18,864.00 18, 864.00 1/1/2017 1,965 1.92 115 18,864.00 133,864.00 152,728.00 7/1/2017 17,760.00 17,760.00 1/1/2018 1,850 1.92 115 17,760.00 132,760.00 150,520.00 7/1/2018 16,656.00 16,656.00 1/1/2019 1,735 1.92 120 16,656.00 136,656.00 153,312.00 7/1/2019 15,504.00 15, 504.00 1/1/2020 1,615 1.92 120 15,504.00 135,504.00 151,008.00 7/1/2020 14,352.00 14,352.00 1/1/2021 1,495 1.92 125 14,352.00 139,352.00 153,704.00 7/1/2021 13,152.00 13,152.00 1/1/2022 1,370 1.92 125 13,152.00 138,152.00 151,304.00 7/1/2022 11,952.00 11,952.00 1/1/2023 1,245 1.92 130 11,952.00 141,952.00 153,904.00 7/1/2023 10,704.00 10, 704.00 1/1/2024 1,115 1.92 130 10,704.00 140,704.00 151,408.00 7/1/2024 9,456.00 9,456.00 1/1/2025 985 1.92 130 9,456.00 139,456.00 148,912.00 7/1/2025 8,208.00 8,208.00 1/1/2026 855 1.92 135 8,208.00 143,208.00 151,416.00 7/1/2026 6,912.00 6,912.00 1/1/2027 720 1.92 140 6,912.00 146,912.00 153,824.00 7/1/2027 5,568.00 5,568.00 1/1/2028 580 1.92 140 5,568.00 145,568.00 151,136.00 7/1/2028 4,224.00 4,224.00 1/1/2029 440 1.92 145 4,224.00 149,224.00 153,448.00 7/1/2029 2,83 2.00 2,832.00 1/1/2030 295 1.92 145 2,832.00 1 47,832.00 150,664.00 7/1/2030 1,440.00 1,440.00 1/1/2031 150 1.92 150 1,440.00 151,440.00 152,880.00 Totals $2,395 $463,920.00 $2,858,920.00 $2,858,920.00 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 29 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $22,350,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2011, SERIES A Principal payable annually on January 1st. Interest payable semiannually on January 1st and July 1st. Interest rate as indicated. Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 01/01/13 $22,350 2.68 $565 $299,490.00 * $864,490.00 $864,490.00 07/01/13 291,919.00 291,919.00 01/01/14 21,785 2.68 585 291,919.00 876,919.00 1,168,838.00 07/01 /14 284,080.00 284,080.00 01/01/15 21,200 2.68 595 284,080.00 879,080.00 1,163,160.00 q- 07/01/15 276,107.00 276,107.00 01/01/16 20,605 2.68 615 276,107.00 891,107.00 1,1 67,214.00 07/01/16 267,866.00 267,866.00 01/01/17 19,990 2.68 630 267, 866.00 897, 866.00 1,165,732.00 07/01/17 259,424.00 259,424.00 01/01/18 19,360 2.68 650 259,424.00 909,424.00 1,168,848.00 07/01 /18 250,714.00 250,714.00 01/01/19 18,710 2.68 670 250,714.00 920,714.00 1,171,428.00 07/01/19 241,736.00 241,736.00 01/01/20 18,040 2.68 670 241,736.00 91 1 ,736.00 1,153,472.00 07/01/20 232,758.00 232,758.00 01/01/21 17,370 2.68 685 232,758.00 917,758.00 1,150,516.00 07/01 /21 223,579.00 223,579.00 01/01/22 16,685 2.68 710 223,579.00 933, 579.00 1,157,158.00 07/01/22 214,065.00 214,065.00 01/01/23 15,975 2.68 730 214,065.00 944,065.00 1 ,158,130.00 07/01/23 204,283.00 204,283.00 01/01/24 15,245 2.68 750 204,283.00 954,283.00 1,158,566.00 07/01 /24 1 94,233.00 194,233.00 01/01/25 14,495 2.68 775 194,233.00 969,233.00 1,1 63,466.00 07/01/25 183,848.00 183,848.00 01/01/26 13,720 2.68 800 183,848.00 983,848.00 1,167,696.00 07/01 /26 173,1 28.00 173,128.00 01/01/27 1 2,920 2.68 820 173,128.00 993,1 28.00 1,166,256.00 07/01/27 162,140.00 162,140.00 01/01/28 12,100 2.68 855 162,140.00 1,017,140.00 1,179,280.00 07/01/28 150,683.00 150,683.00 01/01/29 11,245 2.68 880 150,683.00 1,030,683.00 1,181,366.00 07/01/29 13 8,891.00 138,891.00 01/01/30 10,365 2.68 2,745 138,891.00 2,883,891.00 3,022,782.00 07/01/30 102,108.00 102,108.00 01/01/31 7,620 2.68 2,925 102,108.00 3,027,108.00 3,129,216.00 07/01/31 62,913.00 62,913.00 ` 01/01/32 4,695 2.68 4,695 62,913.00 4,757,913.00 4,820,826.00 Totals $22,350 $8,128,440.00 $30,478,440.00 $30,478,440.00 '' * Subject to actual draws (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 32 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $3,485,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2010, SERIES C Principal payable annually on January 1st. Interest payable semiannually on January 1st and July 1st. Interest rates as indicated. Assumed Payment Principal Interest Debt Service Bond Year Date Balance Rate(s) Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 01/01/13 $3,485 2.00 $845 $41,950.00 $886,950.00 $886,950.00 07/01/13 33,500.00 33,500.00 01/01/14 2,640 2.20 860 33,500.00 893,500.00 927,000.00 07/01/14 24,040.00 24,040.00 01/01/15 1,780 2.60 880 24,040.00 904,040.00 928,080.00 07/01/15 12,600.00 12,600.00 01/01/16 900 2.80 900 12,600.00 912,600.00 925,200.00 Totals $3,485 $182,230.00 $3,667,230.00 $3,667,230.00 (See Accountants' Compilation Report and the accompanying summary of accounting policies.) 31 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $20,550,000 PRINCIPAL AMOUNT OF PROPOSED SEWAGE WORKS REVENUE BONDS OF 2011, SERIES C Principal payable annually on January 1st. Interest rate as indicated. Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Interest Total Total (In $1,000's) ( %) (In $1,000's) ( In Dollars ) 01/01/13 $158,235.00 * $158,235.00 $158,235.00 07/01/13 158,235.00 * 158,235.00 01/01/14 $20,550 1.54 $885 158,235.00 * 1,043,235.00 1,201,470.00 07/01 /14 15 1,420.50 15 1,420.50 01/01/15 19,665 1.54 899 151,420.50 1,050,420.50 1,201,841.00 07/01/15 144,498.20 144,498.20 ir 01/01/16 18,766 1.54 913 144,498.20 1,057,498.20 1,201,996.40 07/01/16 137,468.10 137,468.10 01/01/17 17,853 1.54 927 137,468.10 1,064,468.10 1,201,936.20 `t 07/01/17 I30,330.20 130,330.20 01/01/18 16,926 1.54 941 130,330.20 1,071,330.20 1,201,660.40 07/01/18 123,084.50 123,084.50 01/01/19 15,985 1.54 956 123,084.50 1,079,084.50 1,202,169.00 07/01/19 115,723.30 115,723.30 01/01/20 15,029 1.54 970 115,723.30 1,085,723.30 1,201,446.60 07/01/20 108,254.30 108.254.30 01/01/21 14,059 1.54 985 108,254.30 1,093,254.30 1,201,508.60 07/01/21 100,669.80 100,669.80 01/01/22 13,074 1.54 1,000 100,669.80 1,100,669.80 1,201, 339.60 07/01/22 92,969.80 92,969.80 01/01/23 12,074 1.54 1,016 92,969.80 1,108,969.80 1,201,939.60 07/01/23 85,146.60 85,146.60 01/01/24 11,058 1.54 1.031 85,146.60 1,116,146.60 1,201,293.20 07/01/24 77,207.90 77,207.90 01/01/25 10,027 1.54 1,047 77, 207.90 1,124,207.90 1,201,415.80 07/01/25 69,146.00 69,146.00 01/01/26 8,980 1.54 1,063 69,146.00 1,132,146.00 1,201,292.00 07/01/26 _ 60,960.90 60,960.90 01/01/27 7,917 1.54 1,080 60,960.90 1,140,960.90 1,201,921.80 07/01/27 52,644.90 52,644.90 01/01/28 6,837 1.54 1,096 52,644.90 1,148,644.90 1,201,289.80 07/01/28 44,205.70 44,205.70 01/01/29 5,741 1.54 I ,113 44,205.70 1,157,205.70 1,201,411.40 07/01/29 35,635.60 35,635.60 01/01/30 4,628 1.54 1,130 35,635.60 1,165,635.60 1,201,271.20 07/01/30 26,934.60 26,934.60 01/01/31 3,498 1.54 1.148 26,934.60 1,174,934.60 1,201,869.20 07/01/31 18,095.00 18,095.00 01/01/32 2,350 1.54 1.166 18,095.00 1,184,095.00 1,202,190.00 07/01 /32 9,116.80 9,116.80 01/01/33 1,184 1.54 1,184 9,116.80 1,193, 1 16.80 1,202,233.60 vl Totals $20,550 $3,641,730.40 $24,191,730.40 $24,191,730.40 * Subject to actual draws (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 34 JEFFERSONVILLE (INDIANA) MUNICIPAL SEWAGE WORKS SCHEDULE OF AMORTIZATION OF $772,000 PRINCIPAL AMOUNT OF OUTSTANDING SEWAGE WORKS REVENUE BONDS OF 2011, SERIES B Principal payable annually on January 1st. Interest rate as indicated. Payment Principal Interest Debt Service Bond Year Date Balance Rate Principal Total Total (In $1,000's) ( %) (In $1,000's) 01/01/13 $772 0.00 $39 $39,000.00 $39,000.00 07/01/13 - 01/01/14 733 0.00 39 39,000.00 39,000.00 07/01/14 - 01/01/15 694 0.00 39 39,000.00 39,000.00 07/01/15 - 01/01/16 655 0.00 39 39,000.00 39,000.00 07/01 /16 - 01/01/17 616 0.00 39 39,000.00 39,000.00 07/01/17 - 01/01/18 577 0.00 39 39,000.00 39,000.00 07/01/18 01/01/19 538 0.00 39 39,000.00 39,000.00 07/01/19 01/01/20 499 0.00 39 39,000.00 39,000.00 07/01/20 - 01/01/21 460 0.00 39 39,000.00 39,000.00 07/01/21 01/01/22 421 0.00 39 39,000.00 39,000.00 07/01/22 - 01/01/23 382 0.00 39 39,000.00 39,000.00 07/01/23 - 01/01/24 343 0.00 39 39,000.00 39,000.00 07/01/24 - 01/01/25 304 0.00 38 38,000.00 38,000.00 07/01/25 - 01/01/26 266 0.00 38 38,000.00 38,000.00 07/01/26 - 01/01/27 228 0.00 38 38,000.00 38,000.00 07/01/27 - 01/01/28 190 0.00 38 38,000.00 38,000.00 07/01/28 - 01/01/29 152 0.00 38 38,000.00 38,000.00 07/01/29 - 01/01/30 114 0.00 38 38,000.00 38,000.00 07/01/30 - 01/01/31 76 0.00 38 38,000.00 38,000.00 07/01/31 - 01/01/32 38 0.00 38 38,000.00 38,000.00 Totals $772 $772,000.00 $772,000.00 (The Accountants' Compilation Report and the accompanying comments are an integral part of this statement.) 33