Major Factors to the FY08 Budget: #1. A 5% Revenue Increase based on - - PDF document

03/28/2007 Page 1

Major Factors to the FY08 Budget:

#1. A 5% Revenue Increase based on existing rates. #2. A 6% Labor increase. #3. Meter Replacement Lease; FY 08 cost: $434,200. #4. Moderate growth in O & M to keep pace with inflationary prices, especially electric, chemicals, equipment repairs & maint. and insurance. #5. Program enhancements of $715,400. Includes 4 new positions and Salary Market Adjustment. #6. The use of Fund Balance (accumulated savings) as a rate stabilizer is not recommended.

$18,466,600 $20,780,800

Expenses Revenues $5 $10 $15 $20 $25 Millions Revenues Prgm-Enh Baseline Exp. Budget is out of balance by $2.3 Million. A rate increase of 14.4% would balance the budget.

FY08 Water & Sewer Fund Summary

03/28/2007 Page 2

FY04 FY05 FY06 FY07 FY08 100 200 300 400 500 600 700 800 Thousands

The use of Fund Balance (accumulated savings) as a rate stabilizer is not recommended for FY 08. It is estimated by the end of fiscal year 2007, the unrestricted cash will be $843,600 or 4.7% of operating revenues.

Fund Balance Appropriation

26% 21% 14% 11% 4% 4%

FY03 FY04 FY05 FY06 FY07 FY08 Est. $0.0 $5.0 $10.0 $15.0 $20.0

• Est. Liquid Fund Balance

Operating Budget Fund Balance has been budgeted as a rate stabilizer in recent years due to it's strong relationship to operating revenues. The % represents the est. cash reserves to operating revenues.

Water &Sewer Operating Fund Balance

03/26/2007 Page 3

Labor

48.8%

Operating Costs

37.0%

Debt Service

13.4%

Other

0.9%

FY 08 Baseline Operating Budget

5% 13% 29%

• 20%

Labor Operating Debt Other $0 $2 $4 $6 $8 $10 $12 Millions FY07 Budget FY08 Proposed

The percentage over FY 08 Proposed reflects the percent increase for FY 08 compared to FY 07 Budget.

Budget Comparison by Classification

03/28/2007 Page 4

Utilities

34%

Chemicals

13%

Repairs & Maint.

10%

Sludge

13%

Insurance

4%

Supplies

7%

Indirect Cost

5%

Fuel

5%

Contract Services

3%

Other

8%

Breakdown of FY 08 Operating Budget

$ 2 , 5 5 3 , 2 $ 7 4 6 , 5 $ 9 5 8 , $ 9 3 3 , 4 $ 2 6 3 , $ 1 , 9 7 2 , 8 $ 2 , 8 7 , 4 $ 6 4 8 , $ 8 3 5 , $ 8 9 7 , 5 $ 1 6 6 , $ 1 , 9 6 , 2

Utilities Repairs & Maint. Chemicals Sludge Insurance Other $0 $1 $2 $3 Millions FY07 Budget FY08 Budget

Operating Budget Comparision

03/28/2007 Page 5

$1,937,100 $1,812,000 $1,789,800 $2,082,800 $2,679,300

FY04 FY05 FY06 FY07 FY08 500 1,000 1,500 2,000 2,500 3,000 Thousands Meter Replacement BNR Loan Leases Bonds

The Meter Replacement Lease was implemented mid-year FY07. FY 07 Bonds will increase Bond Principal & Interest by $200,900

History of Debt Budget

03/28/2007 Page 6

Breakdown of Rate Increase

Starting Rate Sewer: Increase $4.10

Personal Services $143,850 $0.061 Fringe Benefits 140,150 0.059 Utilties 238,500 0.101 Equipment Repairs & Maint. 108,200 0.046 Sludge 35,900 0.015 Chemicals 85,000 0.036 Insurance 63,600 0.027 Other Operating (5,800) (0.002) Debt 247,900 0.105 Capital (22,900) (0.010)

Baseline Expenditures

$1,034,400 0.438 Elimination of Fund Balance (545,700) 0.231 Increase in Revenues: 523,700 (0.222)

Baseline Revenues

($22,000) 0.009

Total Baseline

$1,056,400 0.448 New Rate: $4.55 Percent Inc.: 10.9% Program Enhancements 473,700 0.201

Proposed Increase

$1,530,100 $0.65 New Rate: $4.75 Percent Inc.: 15.8%

03/28/2007 Page 7

Breakdown of Rate Increase

Starting Rate Water Increase $2.30

Personal Services $72,350 $0.031 Fringe Benefits 61,850 0.026 Utilties 227,300 0.096 Insurance 33,200 0.014 Chemicals 38,000 0.016 Other Operating (7,100) (0.003) Debt 198,500 0.084 Capital (14,800) (0.006)

Baseline Expenditures

$609,300 0.258 Elimination of Fund Balance (140,700) 0.060 Increase in Revenues 308,600 (0.131)

Baseline Revenues

$167,900 (0.071)

Total Baseline

$441,400 0.187 New Rate: $2.49 Percent Inc.: 8.1% Program Enhancements 172,200 0.073

Proposed Increase:

$613,600 $0.26 New Rate: $2.56 Percent Inc.: 11.3%

02/14/2007 WSFlowest.123 Page 8

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 est. FY08 est.

22,000 23,000 24,000 25,000 26,000 27,000 28,000

# of customers

The # of It is estim

WATER CUSTOMERS SEWER CUSTOMERS # of # of New % # of # of New % Customers Accounts Increase Customers Accounts Increase 21,532 774 3.7% 21,538 808 3.9% 22,287 755 3.5% 22,309 772 3.6% 23,215 928 4.2% 23,267 958 4.3% 24,002 787 3.4% 24,040 773 3.3% 24,570 568 2.4% 24,612 572 2.4% 25,129 559 2.3% 25,130 518 2.1% 25,695 566 2.3% 25,720 590 2.3% 26,665 970 3.8% 26,688 968 3.8% 27,635 970 3.6% 27,658 970 3.6% 4.3% 3.3% 2.4% 2.1% 2.3% 3.8% 3.6% 4.2% 3.4% 2.4% 2.3% 2.3% 3.8% 3.6%

FY02 FY03 FY04 FY05 FY06 FY07 est. FY08 est.

WATER SEWER

customers added to the system is estimated to grow by 14.8% between FY02 and FY07. mated that 970 accounts will be added in FY08, a 3.6% increase.

Growth in System Growth in System

03/28/2007 Page 9

FY08 Water & Sewer Fund Summary

FY06 FY07 FY07 Jan. FY08 Change from Budget Actual Budget

• Yr. End Est.

Proposed in: $ %

TOTAL OPERATIONS

Revenues $15,932,268 $18,235,900 $18,207,600 $18,466,600 $230,700 1.3% Expenditures 16,360,958 18,235,900 18,429,100 20,780,700 2,544,800 14.0% Surplus/(Deficit) ($428,690) $0 ($221,500) ($2,314,100) ($2,314,100)

Proposed Rate Increases to balance budget: Sewer Rate Increase per 1,000 gallons $0.65 Water Rate Increase per 1,000 gallons $0.26 Total Water & Sewer Rate Increase $0.91 Change in Customer Account Fee per Quarterly Bill: $1.52

One Cent Rate Adjustment = $23,600

Proposed Rate Adj: $0.91 Increase over existing rate: 14.2% $3.34 $3.33 $3.37 $3.73 $4.10 $4.75 $1.79 $1.84 $1.96 $2.09 $2.30 $2.56 $5.13 $5.17 $5.33 $5.82 $6.40 $7.31 FY03 FY04 FY05 FY06 FY07 FY08 requested

$1 $2 $3 $4 $5 $6 $7 $8

Rate

Total Water Sewer

A $.91 Water & Sewer rate increase in FY08 would increase the rate $2.18 cents over the last five years; an average of 8.3% per year.

Charles County Water & Sewer Rate History

03/28/2007, 08:34:19 AM Ws5yr.123 Page 10

WATER AND SEWER USER CHARGES WATER AND SEWER USER CHARGES

Proposed Charles County rate includes a $1.52 increase in the quarterly billing fee and a 26 cent/65 cent per thousand gallons increase for Water and Sewer respectively. WATER ONLY CUSTOMER SEWER ONLY CUSTOMER Existing Proposed Existing Proposed Rate Rate Variance Rate Rate Variance

Quarterly Bill

$44.10 $50.04 $5.94 $74.70 $87.27 $12.57 (based on 17,000 gallons) FY07 est. FY07 est. Total # of customers 1,088 1,115

$190.18 $180.03 $175.86 $171.50 $144.40 $141.64 $117.20 $115.55 $114.46 $113.80 $109.00 $106.95 $97.65 C a r r

• l

l K i n g G e

• r

g e F r e d e r i c k I n d i a n H e a d S t a f f

• r

d L a P l a t a C a l v e r t W S S C A n n e A r u n . C h a r l e s ( e x i s t i n g ) C i t y

• f

B

• w

i e S t . M a r y ' s H a r f

• r

d

60 80 100 120 140 160 180 200

in $

Note: Rates for other Counties/Jurisdictions are as of January 2007.

Average Residential Quarterly Bill

(based on 17,000 gallons)

Proposed: $130.79

03/28/2007 Page 11

OPERATING REVENUE DETAIL

FY06 FY07 FY07 Jan. FY08 Change from Budget Actual Budget

• Yr. End Est.

Proposed in: $ %

SEWER

Revenues * User Charges $8,388,040 $9,430,600 $9,306,800 $9,873,600 $443,000 4.7% Other 1,857,622 1,857,300 1,806,300 1,938,000 80,700 4.3% Total Operating $10,245,662 $11,287,900 $11,113,100 $11,811,600 $523,700 4.6% Fund Balance Approp. 247,300 545,700 545,700 (545,700)

• 100.0%

Total Revenues $10,492,962 $11,833,600 $11,658,800 $11,811,600 ($22,000)

• 0.2%

WATER

Revenues * User Charges $4,653,316 $5,288,600 $5,202,300 $5,534,200 $245,600 4.6% Other 179,761 231,700 417,100 294,700 63,000 27.2% Total Operating $4,833,077 $5,520,300 $5,619,400 $5,828,900 $308,600 5.6% Fund Balance Approp. 247,300 140,700 140,700 (140,700)

• 100.0%

Total Revenues $5,080,377 $5,661,000 $5,760,100 $5,828,900 $167,900 3.0%

BILLING

Revenues User Charges $493,716 $557,500 $553,200 $571,200 $13,700 2.5% Other 209,813 183,800 235,500 254,900 71,100 38.7% Total Operating $703,529 $741,300 $788,700 $826,100 $84,800 11.4% *Calculated based on 3 year average of flows and an estimated growth of 970 new customers.

$ 1 8 , 2 3 5 , 9 $ 1 8 , 2 7 , 6 $ 1 8 , 4 3 1 , 6

FY07 Budget FY07 Est. FY08 Requested $5.0 $10.0 $15.0 $20.0 Millions Fund Balance Other User Charges

Total Revenues

03/28/2007 Page 12

$18,235,900 $18,429,100 $20,780,700 FY07 Budget FY07 Est. FY08 Requested

$5.0 $10.0 $15.0 $20.0 $25.0 Millions

Labor Operating New Personnel Costs New Operating

Total Expenditures

03/28/2007 Page 13

FY08 Water & Sewer Fund Summary

FY06 FY07 FY07 Jan. FY08 Change from Budget Actual Budget

• Yr. End Est.

Proposed in: $ %

SEWER OPERATION

Revenues $10,346,162 $11,833,600 $11,658,800 $11,811,600 ($22,000)

• 0.2%

Expenditures 10,343,177 11,833,600 11,824,500 13,341,600 1,508,000 12.7% Surplus/(Deficit) $2,985 $0 ($165,700) ($1,530,000) ($1,530,000)

One Cent Rate Adjustment = $23,600

Proposed Rate Adj $0.65 Increase over existing rate: 15.8%

SEWER RATE INCREASE:

(effect on rate) Total Baseline Shortfall: $1,056,400 0.448 Program Enhancements/Expansion Salary Market Adjustment: 259,700 0.110 WW Operator I (Operations) 51,300 0.022 Lab Tech I (Operations) 35,100 0.015 WW Operator Supervisor II 56,300 0.024 Electrical Test Bench (split 3 ways) 4,000 0.002 Additional Training Funds 12,300 0.005 Equipment Lubrication Management Evaluation & Audit 17,400 0.007 Gang Boxes 2,500 0.001 Specialty Tools 6,600 0.003 Replacement Tools 2,000 0.001 SCADA Server (50%) - Alarm System 2,200 0.001 Laptop (50%) 800 0.000 Paving Breaking (Jack Hammer, MX90) Kit 500 0.000 5x8 Cargo Trailer 3,200 0.001 5x8 Cargo Trailer 3,200 0.001 Two Portable Spectrophotometers 6,700 0.003 Two Spare Gas Ejector Assemblies 900 0.000 Tools - Operations 5,000 0.002 Jar Tester 1,900 0.001 Digital Camera 400 0.000 Project Manager Software 1,200 0.001 AutoCad Lite 500 0.000 Subtotal 473,700 0.201

Total Shortfall

$1,530,100 $0.65 current rate $4.10 proposed rate $4.75 % rate increase 15.8%

03/28/2007 Page 14

FY08 Water & Sewer Fund Summary

FY06 FY07 FY07 Jan. FY08 Change from Budget Actual Budget

• Yr. End Est.

Proposed in: $ %

WATER OPERATION

Revenues $4,882,577 $5,661,000 $5,760,100 $5,828,900 $167,900 3.0% Expenditures 5,324,591 5,661,000 5,875,300 6,442,500 781,500 13.8% Surplus/(Deficit) ($442,014) $0 ($115,200) ($613,600) ($613,600)

One Cent Rate Adjustment = $23,600

Proposed Rate Adj $0.26 Increase over existing rate: 11.3%

WATER RATE INCREASE:

(effect on rate) Total Baseline Shortfall: $441,400 0.187 Program Enhancements/Expansion: Salary Market Adjustment: 131,600 0.056 Lab Tech I 18,700 0.008 Electrical Test Bench (split 3 ways) 2,000 0.001 Additional Training Funds 6,700 0.003 Specialty Tools (split 3 ways) 3,300 0.001 Replacement Tools (split 3 ways) 1,000 0.000 SCADA Server - Alarm System 2,100 0.001 Laptop 700 0.000 Paving Breaking (Jack Hammer, MX90) Kit 500 0.000 Caustic Soda Scale 1,900 0.001 Fence Repair 2,300 0.001 Public Education Materials 300 0.000 Digital Camera 200 0.000 Project Manager Software (split 3 ways) 600 0.000 AutoCad Lite (split 3 ways) 300 0.000 Subtotal 172,200 0.073

Total Shortfall:

$613,600 $0.26 current rate $2.30 proposed rate $2.56 % rate increase 11.3%

03/28/2007 Page 15

FY08 Water & Sewer Fund Summary

FY06 FY07 FY07 Jan. FY08 Change from Budget Actual Budget

• Yr. End Est.

Proposed in: $ %

BILLING & METER OPERATION

Revenues $703,529 $741,300 $788,700 $826,100 $84,800 11.4% Expenditures 693,190 741,300 729,300 996,600 255,300 34.4% Surplus/(Deficit) $10,339 $0 $59,400 ($170,500) ($170,500)

ONE CENT ON QUARTERLY FEE= $1,121

$1.52 Increase over existing rate: 30.4%

BILLING RATE INCREASE:

(effect on rate) Baseline Changes: Baseline Revenues in Excess of Expenditures (32,000) (0.286) Account Set Up Fee (36,000) (0.321) Debt Service for Meter Replacements 160,600 1.433

• Equip. Repairs & Mnt. for new Meter Reading system

8,300 0.074 Increase in Baseline: $100,900 0.900 Program Enhancements: Salary Market Adjustment: 29,300 0.261 Utility Specialist Position 40,300 0.360 Increase in Program Enhancements $69,600 0.621 Total Increase: $170,500 1.52 current rate $5.00 proposed rate $6.52 % rate increase 30.4%

03/28/2007 Page 16

Water & Sewer Fund

FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $6,308,712 $7,144,300 $7,380,700 $7,380,700 $236,400 3.3% Fringe Benefits 2,007,106 2,200,000 2,406,400 2,406,400 206,400 9.4% Operating Costs 6,175,128 6,594,100 7,426,900 7,426,900 832,800 12.6% Operating Contingency 145,000 140,000 140,000 (5,000)

• 3.4%

Debt Service 1,764,891 2,082,800 2,679,300 2,679,300 596,500 28.6% Capital Outlay 15,536 36,200 15,500 15,500 (20,700)

• 57.2%

Capital Projects 36,090 16,500 16,500 16,500 NEW Capital Maintenance 53,495 33,500 (33,500) N\A Total Baseline $16,360,958 $18,235,900 $20,065,300 $20,065,300 $1,829,400 10.0% Program Enhancement/Expansion 715,400 715,400 $715,400 NEW Total Expenditures $16,360,958 $18,235,900 $20,780,700 $20,780,700 $2,544,800 14.0% FTE Program Enhancement/Expansion FY08

Priority: NEW REQUEST

Request

Salary Market Adjustment:

Utility Billing Specialist $40,300 Wastewater Operator I 51,300 Lab Tech I 53,800 WW Operator Supervisor II 56,300 Salary Enhancement: 420,600 Billing 17,100 Meters 12,200 Satellite Sewer Systems 148,900 Mattawoman Treatment Plant 97,300 Water 118,100 PGM Admin 12,900 Development Services 14,100 $622,300

New Operating Enhancements:

Equipment Lubrication Management Evaluation & Audit 17,400 Two Portable Spectrophotometers 6,700 Electrical Test Bench 5,900 Caustic Soda Scale 1,900 Fence Repair 2,300 Supervisory Control and Data Acquisition (SCADA) server 4,300 Paving Breaking (Jack Hammer, MX90) Kit 1,000 5x8 Cargo Trailer 3,200 5x8 Cargo Trailer 3,200 Gang Boxes 2,500 Laptop 1,500 Public Education Materials 300 Specialty Tools 9,900 Two Spare Gas Ejector Assemblies 900 Digital Camera 600 Project Manager Software 1,800 Additional Training Funds 19,000 Replacement Tools 3,000 Tools 5,000 Jar Tester 1,900 AutoCad Lite 800 $93,100 Total Program Enhancement/Expansion: $715,400

03/28/2007 Page 17

Water & Sewer

Departments: Fiscal Services & Utilities Account: 30.04/25.60 Division \ Program: Billing & Meters Fund: Enterprise Program Administrator: Tracy Willett, Billing Manager/James Hutchins, Meter Tech. Supervisor FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $437,942 $463,600 $483,800 $483,800 $20,200 4.4% Fringe Benefits 138,181 151,200 155,600 155,600 4,400 2.9% Operating Costs 93,830 99,300 115,300 115,300 16,000 16.1% Contingency 5,000 (5,000) N\A Debt Service 23,237 22,200 172,300 172,300 150,100 676.1% Total Baseline $693,190 $741,300 $927,000 $927,000 $185,700 25.1% Program Enhancement/Expansion 69,600 69,600 $69,600 NEW Total Expenditures $693,190 $741,300 $996,600 $996,600 $255,300 34.4% Total Revenues $703,529 $741,300 $826,100 $826,100 $84,800 11.4%

4.4% 2.9% 16.1% N\A 676.1% NEW

P P e r s

• n

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• n

a a l S l S e e r v r v i i c c e e s s F r i F r i n n g g e e B B e n e n e e f f i t i t s s O O p e p e r r a t a t i n g i n g C C

• s

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• s

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r a r a m m E n E n h a h a n n c c e e . .

$0 $50 $100 $150 $0 $0 Thousands

Billing & Meter Expenditures Cost Variance to FY07

03/28/2007 Page 18

Water & Sewer

Departments: Fiscal Services & Utilities Account: 30.04 Division \ Program: Billing Fund: Enterprise Program Administrator: Tracy Willett, Billing Manager FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $257,932 $275,900 $286,100 $286,100 $10,200 3.7% Fringe Benefits 72,861 81,300 78,400 78,400 (2,900)

• 3.6%

Operating Costs 64,938 70,900 72,600 72,600 1,700 2.4% Operating Contingency 5,000 (5,000) N\A Debt Service 8,888 5,400 4,300 4,300 (1,100)

• 20.4%

Total Baseline $404,619 $438,500 $441,400 $441,400 $2,900 0.7% Program Enhancement/Expansion 57,400 57,400 57,400 NEW Total Expenditures $404,619 $438,500 $498,800 $498,800 $60,300 13.8% Total Revenues $422,117 $444,800 $495,700 $495,700 $50,900 11.4% Program Enhancement/Expansion Grade Hire Date Salary Fringe Operating Capital Total 1)

Utility Billing Specialist

TBD September 28,800 9,400 2,100 40,300 TOTAL REQUEST: 28,800 9,400 2,100 40,300 2) Salary Market Adjustemtn 14,100 3,000 17,100 TOTAL REQUEST: 14,100 3,000 17,100 JUSTIFICATION: 1) Utility Billing Specialist needed to handle work load demands and customer inquiries. The constant growth of the last few years of the County and the demand it has placed on the expected customer service has reached its maximum levels of expectation of current staff. Any change related to the quarterly billing system now in place as a result of the JCI contract will require additional staff support. 2) Cost of the salary enhancement. TOTAL PROGRAM ENHANCEMENT: $57,400

Water & Sewer

Departments: Fiscal Services & Utilities Account: 30.04 Division \ Program: Billing Fund: Enterprise Program Administrator: Tracy Willett, Billing Manager Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Chief of Accounting 0.25 0.25 0.25 0.25 0.25 Billing Manager 1.00 1.00 1.00 1.00 1.00 Senior Utilities Billing Specialist 1.00 1.00 1.00 1.00 1.00 Utilities Billing Specialist 3.00 3.00 3.67 3.67 4.67 Total Full Time Equivalent 5.25 5.25 5.92 5.92 6.92 Description The Billing Division is responsible for customer billing on a quarterly basis, assessing penalties on delinquent accounts, and termination of service, if so warranted. Customer service and assistance are top priorities for our system. Customer bills are created by the electronic transfer of meter readings from handheld units to a data base that is used to calculate water and sewer invoices based on water consumption.

03/28/2007 Page 19 FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated Objective: To process invoices for water/sewer services provided each quarter and follow-up with collection efforts as needed to ensure revenue recovery. # of invoices per year 102,674 106,567 104,782 109,089 110,864 113,081

• per FTE (5)

20,535 21,313 20,956 21,818 22,173 18,847* # of regular invoices 98,043 101,639 99,884 104,157 10,634 108,491 # of finals 4,631 4,928 4,818 4,932 4,500 4,590 #returned checks processed 334 353 350 405 430 455 # of delinquent invoices per quarter 24,057 24,169 24,868 31,422 32,050 29,401

• % of total billed

24% 23% 24% 29% 29% 26%

• per FTE (4)

6,014 6,042 6,217 7,856 8,012 5,880*

• # of service cut-offs for failure to pay

6,669 8,234 7,353 8,598 8,728 8,902 # of services actually cut off 2,767 4,443 3,015 4,952 4,713 4,807 # of new accounts set up 587 541 357 587 557 664 Objective: To follow up on past due accounts/ improve collection efforts # of final notice letters 1,303 866 1,122 645 418 658 # of liens 267 160 225 156 180 229 # of liens released 87 175 67 226 84 86

Objective: To process Special bills for misread or unread accounts during billing cycles and provide Refunds to customers with credit balances

# of Special Bills 248 340 350

• per FTE(5)

49 68 70 Objective: To provide customer service through phone communication

Average FY 06

# of Phone Calls 48,782 52,770 57,667 624 line 5,172 4,800 4,900 870 line 30,936 34,029 37,432 Messages Returned 12,674 13,941 15,335

• per FTE (4)

12,196 13,193 11,533 * Note: By adding an additional Utility Billing Specialist the amount of invoices and the amount of delinquent invoices per FTE will return to the FY01 level.

03/28/2007 Page 20

Water & Sewer

Departments: Fiscal Services & Utilities Account: 30.25.60.146 Division \ Program: Meters Fund: Enterprise Program Administrator: James Hutchins, Meter Superintendent FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $180,010 $187,700 $197,700 $197,700 $10,000 5.3% Fringe Benefits 65,320 69,900 77,200 77,200 7,300 10.4% Operating Costs 28,892 28,400 42,700 42,700 14,300 50.4% Debt Service 14,350 16,800 168,000 168,000 151,200 900.0% Total Baseline $288,572 $302,800 $485,600 $485,600 $182,800 60.4% Program Enhancement/Expansion 12,200 12,200 $12,200 NEW Total Expenditures $288,572 $302,800 $497,800 $497,800 $195,000 64.4% Total Revenues $281,412 $296,500 $330,400 $330,400 $33,900 11.4% Program Enhancement/Expansion Salary Fringe Operating Capital Total Salary Market Adjustment 9,800 2,400 12,200 TOTAL REQUEST: 9,800 2,400 Total Program Enhancement/Expansion 12,200 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Meter Superintendent 0.00 0.50 0.50 0.50 0.50 Meter Reader Supervisor 1.00 0.00 0.00 0.00 0.00 Meter Technicians 3.67 4.00 4.00 4.00 4.00 Total Full Time Equivalent 4.67 4.50 4.50 4.50 4.50 Description The Meter Division is responsible for installing, repairing, and reading meters for water and sewer billing purposes. More than 1,400 meters are installed or replaced annually, with the goal of more aggressive replacement program in the near future. Meter readings are transferred from hand-held units to a data base that is used by the Billing Division to invoice customers based

• n consumption. Prompt, accurate readings and customer service are top priorities for the Division.

FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated Objective: To have a system inventory of meters less than 15 years old and to insure the accuracy and timeliness of readings # of meters installed

• # of meters replaced

897 818 900 665 200 200

• # of new installations

552 525 550 544 550 567

• # of meters installed per FTE

362 336 363 302 188 192

• # of leak tests

9 8 9 17 12 10 # of meters read

• # of meters read

99,728 104,036 108,888 104,369 108,716 111,977

• # of meters read per FTE

21,355 26,009 27,222 26,092 27,179 27,994 # of service cutoffs for non-payment 2,767 4,661 4,700 4,919 5,000 5,200 Replacements meters declined during FY06 pending the County-wide replacement program which is not reflected above. FY07 and FY08 also reflect this change.

03/28/2007 Page 21

Water & Sewer

Department: Utilities Division \ Program: Sewer Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $3,705,087 $4,319,900 $4,459,700 $4,459,700 $139,800 3.2% Fringe Benefits 1,179,995 1,315,300 1,451,100 1,451,100 135,800 10.3% Operating Costs 4,173,995 4,647,600 5,172,600 5,172,600 525,000 11.3% Debt Service 972,668 1,158,900 1,406,800 1,406,800 247,900 21.4% Capital Outlay 7,768 23,300 10,400 10,400 (12,900)

• 55.4%

Capital Maintenance 37,070 10,000 (10,000)

• 100.0%

Total Baseline $10,076,583 $11,475,000 $12,500,600 $12,500,600 $1,025,600 8.9% Program Enhancement/Expansion 460,100 460,100 460,100 NEW Total Expenditures $10,076,583 $11,475,000 $12,960,700 $12,960,700 $1,485,700 12.9%

3.2% 10.3% 11.3% 21.4%

• 55.4%-100.0%

N/A

P e r s

• n

a l S e r v i c e s F r i n g e B e n e f i t s O p e r a t i n g C

• s

t s D e b t S e r v i c e C a p i t a l O u t l a y C a p i t a l M a i n t e n a n c e P r

• g

r a m E n h a n c e m e n t s

($100) $0 $100 $200 $300 $400 $500 $600 Thousands

Sewer Expenditures Cost Variance to FY07

03/28/2007 Page 22

Water & Sewer

Department: Utilities Account: 30.25.71 Division \ Program: Satellite Sewer Systems Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $2,144,181 $2,430,400 $2,516,400 $2,516,400 $86,000 3.5% Fringe Benefits 697,569 748,500 831,700 831,700 83,200 11.1% Operating Costs 1,254,656 1,387,000 1,510,000 1,510,000 123,000 8.9% Debt Service 972,668 1,158,900 1,406,800 1,406,800 247,900 21.4% Capital Outlay 7,768 12,900 5,200 5,200 (7,700)

• 59.7%

Capital Projects 183 N\A Total Baseline $5,077,025 $5,737,700 $6,270,100 $6,270,100 $532,400 9.3% Program Enhancement/Expansion 256,800 256,800 256,800 NEW Total Expenditures $5,077,025 $5,737,700 $6,526,900 $6,526,900 $789,200 13.8% Program Enhancement/Expansion

New Position Request:

Grade Hire Date Salary Fringe Operating Capital Total 1 WW Operator I is needed for the opening of the new BNR plant at Swan Point to handle new/additional testing requirements and day to day operations and preventive maintenance. WW Operator I (Operations) TBD July 34,600 11,300 2,800 2,600 51,300 2 TPs and additional drinking water regulations pending implementation as a result of new "Safe Water Drinking Act" provisions. Lab Tech I TBD July 13,400 4,400 1,000 18,800

Salary Market Adjustment

121,800 27,100 148,900

03/28/2007 Page 23

New Request for Operating/Capital Outlay:

Grade Hire Date Salary Fringe Operating Capital Total Electrical test bench for electrical motors, electrical apparatus, components Electrical Test Bench (split 3 ways) Equip Maint. 2,000 2,000 Replacement, but keeping old one for storage SCADA Server - Equip Maint (50%) 2,200 2,200 Additional training funds for Electricians and Mechanical Maint staff Additional Training Funds - Equip Maint. 6,700 6,700 Gang boxes for storage of flow diversion equipment Gang Boxes - Equip Maint (50%). 1,200 1,200 Laptop for SCADA system for remote maintenance. Laptop (split 2 ways) - Equip Maint. 800 800 Specialty tools for Equipment Maintenance Division Specialty Tools (split 3 ways) Equip Maint. 3,300 3,300 Replacement tools (already budget for this in the baseline; request is for additional) Replacement Tools (split 3 ways) - Equip Maint. 1,000 1,000 Paving Breaking (jack hammer, MX90) kit Paving Breaking (Jack Hammer, MX90) Kit - Line Maint. (50%) 500 500 For transporting sewer cleaning Eqpmt too heavy to lift onto back of pickups 5x8 Cargo Trailer - Line Maint. 3,200 3,200 For safely transporting sensitive sewer TV eqpmt 5x8 Cargo Trailer - Line Maint. 3,200 3,200 Portable spectrophotometers (2) for Bel Alton, Mt Carmel Two Portable Spectrophotometers - Operations 6,700 6,700 Spare gas ejector assemblies (2) for use when existing ones aren't operational Two Spare Gas Ejector Assemblies - Operations 900 900 Tools for preventive maintenance/repairs by Operations' staff Tools - Operations 5,000 5,000 Digital camera for Project Manager Digital Camera (split 3 ways) - Support Services 200 200 For multi-project tracking Project Manager Software (split 3 ways) - Support Services 600 600 management AutoCad Lite (split 3 ways) - Support Services 300 300 Total Request: $169,800 $42,800 $41,600 $2,600 $256,800 Total Program Enhancement/Expansion $256,800

03/28/2007 Page 24 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Director of Utilities 0.34 0.34 0.34 0.34 0.34 Chief of Maintenance 0.34 0.34 0.34 0.34 0.34 Chief of Operations/Utilities 0.34 0.34 0.34 0.34 0.34 Utilities Engineer 0.25 0.25 0.25 0.25 0.25 Assistant to Director of Utilities 0.34 0.34 0.34 0.34 0.34 Laboratory Supervisor 0.33 0.33 0.33 0.33 0.33 W/S Equipment Maintenance Supt. 0.34 0.34 0.34 0.34 0.34 Line Maintenance Superintendent 0.50 0.50 0.50 0.50 0.50 Wastewater Operations Supt. 1.00 1.00 1.00 1.00 1.00 Line Maintenance Supervisor 2.50 2.00 2.00 2.00 2.00 W/S Equipment Maintenance Supervisor 1.36 1.36 1.36 1.36 1.36 Wastewater Operations Supervisor I 3.00 3.00 4.00 4.00 4.00 Electrician II 1.19 1.19 1.02 1.02 1.02 Laboratory Technician II 0.34 0.34 0.34 0.34 0.34 Fleet Maintenance Technician III 0.34 0.34 0.34 0.34 0.34 Equipment Maintenance Technician II 1.36 1.36 1.36 1.36 1.36 Painter 0.34 0.34 0.34 0.34 0.34 Facilities Maintenance Technician II 0.34 0.34 0.34 0.34 0.34 Meter Technician Supervisor 0.00 0.25 0.25 0.25 0.25 Administrative Associate 1.02 1.02 1.02 1.02 1.02 Laboratory Technician I 1.02 1.02 0.67 0.67 1.00 Electrician I 0.17 0.17 0.34 0.34 0.34 Equipment Operator III 6.50 6.50 6.50 6.50 6.50 Supply Clerk II 0.34 0.34 0.34 0.34 0.34 Fleet Maintenance Technician II 0.34 0.34 0.34 0.34 0.34 Wastewater Operator / Trainee 10.00 10.00 12.00 12.00 13.00 Equipment Maintenance Technician I 1.70 1.70 2.38 2.38 2.38 Electrician Assistant 0.68 0.68 1.02 1.02 1.02 Facilities Maintenance Technician I 0.34 0.34 0.34 0.34 0.34 Grounds Maintenance Worker I 1.00 1.00 1.00 1.00 1.00 Line Maintenance Worker 8.50 6.50 6.50 6.50 6.50 Personnel Administrator 0.34 0.34 0.34 0.34 0.34 Utility Locator 1.00 1.00 1.00 1.00 1.00 Office Associate II 0.34 0.34 0.34 0.34 0.34 Meter Technician 0.00 2.00 2.00 2.00 2.00 Total Full Time Equivalent 47.84 47.59 51.26 51.26 52.59

03/28/2007 Page 25

Water & Sewer

Department: Utilities Account: 30.25.71 Division \ Program: Satellite Sewer Systems Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities Description The Sewer Division of the Department of Utilities exists to operate and maintain all County owned sewer lines, pump stations and treatment plants in an effort to insure a healthy environment for Charles County residents. Included are 58 pump stations, 6 wastewater treatment plants, and hundreds of miles of sewer lines throughout the County. Facilities are monitored by staff daily everyday of the year, with radio telemetry alarm units and an emergency telephone system providing for around the clock responses as needed. The Sewer Division also includes the holding tank program (administered by the Department of Community Services) which provides for the pumping of 22 holding tanks for those who qualify, and the Sewer Division pumps these tanks

• n a regular basis. As is the case with the remainder of the Department, the program goal is to comply with all

Federal, State, and County laws and regulations on a consistent basis and to meet or exceed all permit conditions. FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated SEWER OPERATIONS Sites monitored/visited daily 57 58 59 59 60 61

• sites monitored/visited daily per FTE

4.04 4.14 4.21 4.21 4.29 4.07 Gallons treated per day (All plants) 12,970,193 11,958,961 12,500,000 11,068,058 11,500,000 12,000,000

• GPD per FTE

381,476 351,734 367,647 325,531 338,235 333,333 Objective: To minimize unwanted inflow of ground water into sewer collection system. Cost of l & l per gallon per minute reduce $125.06 $271.82 $200.00 $95.85 $200.00 $200.00

• # of connections saved

313 194 250 669 250 250

• cost savings per 1,000 gallons treated

$99,184 $62,214 $88,494 $236,811 $97,273 $97,273 LINE MAINTENANCE - SEWER Holding Tank Pumping Program

• Gallons Pumped

1,081,300 1,004,600 1,100,000 830,500 860,000 860,000

• Total Miles

27,998 26,190 29,000 22,021 24,000 24,000

• Total Loads

666 620 670 534 550 550

ALL DIVISIONS

ADMINISTRATION Objective: To monitor and track activities of staff in the department Accidents per Year

• vehicle accidents

12 8 3 9 3 3

• general liability incidents

14 8 3 11 6 6

• workers comp incidents

6 14 5 21 5 5

• total incidents per FTE

0.28 0.26 0.09 0.36 0.12 0.12 # of vacant positions to be filled 17 14 15 30 20 20 # of personnel actions administered 27 11 12 12 5 5 # of accounts per total FTE 222.20 229.96 227.93 235.10 244.50 249.14 # of customer complaints logged 984 819 808 670 800 750 ratio of complaints to accounts 0.040 0.031 0.030 0.025 0.029 0.026 LINE MAINTENANCE DIVISION Objective: To minimize broken lines caused by digging activities of contractors and utility companies.

• Number of Water and Sewer Locates

9,541 11,450 14,888 14,984 17,000 17,000 EQUIPMENT MAINTENANCE DIVISION Objective: To keep all equipment operational for process stability.

• # of Work Order Responses

340 255 200 268 260 260

• # of Emergency Equipment Repairs

234 217 208 174 100 100

• # of PMs Performed

1,866 2,012 2,940 1,730 1,200 1,500

03/28/2007 Page 26

Water & Sewer

Department: Utilities Account: 30.25.72 Division \ Program: Mattawoman Treatment Plant Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $1,560,906 $1,889,500 $1,943,300 $1,943,300 $53,800 2.8% Fringe Benefits 482,426 566,800 619,400 619,400 52,600 9.3% Operating Costs 2,919,339 3,260,600 3,662,600 3,662,600 402,000 12.3% Capital Outlay 10,400 5,200 5,200 (5,200)

• 50.0%

Capital Maintenance 37,070 10,000 (10,000)

• 100.0%

Total Baseline $4,999,741 $5,737,300 $6,230,500 $6,230,500 $493,200 8.6% Program Enhancement/Expansion 203,300 203,300 203,300 NEW Total Expenditures $4,999,741 $5,737,300 $6,433,800 $6,433,800 $696,500 12.1% WSSC Contribution $593,050 $522,100 $578,800 $578,800 $56,700 10.9% Program Enhancement/Expansion

New Position Request:

Grade Hire Date Salary Fringe Operating Capital Total 1 TPs and additional drinking water regulations pending implementation as a result of new "Safe Water Drinking Act" provisions. Lab Tech I TBD July $13,800 $4,400 $1,000 $19,200 Less WSSC Share: (2,100) (700) (100) (2,900) 2 WW Operator Supervisor II is needed for the midnight shift which does not currently have a supervisor. With the new workload placed on staff due to the facility upgrade, all shifts need certified supervisors. WW Operator Supervis TBD July 47,500 15,500 2,900 65,900 Less WSSC Share: (7,100) (2,300) (200) (9,600)

Salary Market Adjustment

Salary Market Adjustment 93,500 20,900 114,400 Less WSSC Share: (14,000) (3,100) (17,100)

03/28/2007 Page 27

New Request for Operating/Capital Outlay:

Grade Hire Date Salary Fringe Operating Capital Total Electrical test bench for electrical motors, electrical apparatus, components Electrical Test Bench (split 3 ways) - Equip. Maint. 2,000 2,000 Less WSSC Share: (100) (100) Equipment lubrication management evaluation and audit Equipment Lubrication Management Evaluation & Audit 18,000 18,000 Less WSSC Share: (600) (600) Additional training funds for Electricians and Mechanical Maint staff Additional Training Funds- Equip. Maint. 6,600 6,600 Less WSSC Share: (1,000) (1,000) Gang boxes for storage of flow diversion equipment Gang Boxes (50%) - Equip. Maint. 1,300 1,300 Less WSSC Share: Specialty tools for Equipment Maintenance Division Specialty Tools (split 3 ways) - Equip. Maint. 3,400 3,400 Less WSSC Share: (100) (100) Replacement tools (already budget for this in the baseline; request is for additional) Replacement Tools (split 3 ways) - Equip Maint. 1,000 1,000 Less WSSC Share: Jar Tester for determining optimal dosing rates for chemicals (laboratory) Jar Tester - Operations 2,000 2,000 Less WSSC Share: (100) (100) Digital camera for Project Manager Digital Camera (split 3 ways) - Support Services 200 200 Less WSSC Share: For multi-project tracking Project Manager Software (split 3 ways) 600 600 Less WSSC Share: For Project Management AutoCad Lite (split 3 ways) - Support Services 200 200 Less WSSC Share: Total New Request $131,600 $34,700 $37,000 $0 $203,300 Total Program Enhancement/Expansion $203,300

03/28/2007 Page 28 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Director of Utilities 0.33 0.33 0.33 0.33 0.33 Chief of Operations/Utilities 0.33 0.33 0.33 0.33 0.33 Chief of Maintenance 0.34 0.34 0.34 0.34 0.34 Assistant to Director of Utilities 0.33 0.33 0.33 0.33 0.33 Utilities Engineer 0.25 0.25 0.25 0.25 0.25 Laboratory Supervisor 0.33 0.33 0.33 0.33 0.33 W/S Equipment Maintenance Supt. 0.33 0.33 0.33 0.33 0.33 Wastewater Operations Superintendent 1.00 1.00 1.00 1.00 1.00 Wastewater Operations Supervisor II 5.00 5.00 5.00 5.00 6.00 Pretreatment Specialist 1.00 1.00 1.00 1.00 1.00 W/S Equipment Maintenance Supervisor 1.32 1.32 1.32 1.32 1.32 Electrician II 1.16 1.16 2.16 2.16 2.16 Laboratory Technician II 0.33 0.33 0.33 0.33 0.33 Personnel Administrator 0.33 0.33 0.33 0.33 0.33 Painter 0.33 0.33 0.33 0.33 0.33 Fleet Maintenance Technician III 0.33 0.33 0.33 0.33 0.33 Equipment Maintenance Technician II 1.33 1.33 1.33 1.33 1.33 Facilities Maintenance Technician II 0.33 0.33 0.33 0.33 0.33 Administrative Associate 0.99 0.99 0.99 0.99 0.99 Laboratory Technician I 1.00 1.00 0.67 0.67 1.00 Wastewater Operator II 5.00 5.00 5.00 5.00 5.00 Electrician I 0.17 0.17 0.17 0.17 0.17 Supply Clerk II 0.33 0.33 0.33 0.33 0.33 Fleet Maintenance Technician II 0.33 0.33 0.33 0.33 0.33 Equipment Maintenance Technician I 1.65 1.65 3.31 3.31 3.31 Electrician Assistant 0.66 0.66 0.99 0.99 0.99 Facilities Maintenance Technician I 0.33 0.33 0.33 0.33 0.33 Wastewater Operator Trainee 10.00 10.00 10.00 10.00 10.00 Office Associate II 0.33 0.33 0.33 0.33 0.33 Assistant Superintendent 0.00 1.00 1.00 1.00 1.00 Total Full Time Equivalent 35.49 36.49 39.15 39.15 40.48

03/28/2007 Page 29

Water & Sewer

Department: Utilities Account: 30.25.72 Division \ Program: Mattawoman Treatment Plant Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities Description The Mattawoman Wastewater Treatment Plant is an advanced facility capable of treating 15 million gallons of wastewater daily. It is staffed and monitored around the clock and has phosphorous removal and sludge handling capabilities, accepting septic tank & holding tank wastes, as well as sludge, from other sources throughout the County. A sludge contract with a private vendor provides for a proactive approach to sludge management that benefits not only the user community and the agricultural community, but the environment as a whole since we are able to conserve landfill space and assist in the Chesapeake Bay restoration effort. Construction is underway for a Biological Nutrient Removal upgrade to the Plant as part of a Chesapeake Bay initiative. There is also an expansion included in this project which will increase the plant's capacity to 20 million gallons per day. The Plant has an in-house laboratory that provides analytic services for quality control. The goal of the facility is to comply with all Federal, State , and County laws and regulations on a consistent basis and to meet or exceed all permit conditions. FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated TREATMENT PLANT Objective: To track sludge production under contract for stabilization and disposal. Sludge tons treated 3,687.0 3,433.0 3,600.0 3,268.0 3,500.0 3,700.0

• cost per ton*

$230.32 $242.76 $245.00 $241.00 $248.00 $255.00

• tons from other gov't agencies

118.09 118.05 120.00 96.47 110.00 115.00

• cost per ton from other gov't agencies

$240.00 $240.00 $240.00 $240.00 $240.00 $240.00 (cost per ton from other gov't agencies is recouped when the Billing Office invoices them monthly) LABORATORY Objective: To monitor laboratory function requirements, as laws and regulations change and the system grows. # of analyses in-house 10,267 10,557 12,067 12,500 # analyses in-house per FTE 3,422 3,519 4,022 3,125 # of analyses contracted out 151 1,068 708 410 A new Lab supervisor was hired at the beginning of FY07 and 2 technicians were hired shortly after that. Prior to that time, the lab sent out most of the samples for testing due to understaffing. Additionally, a different technique is being used to account for the number of analyses being conducted. Consequently, certain figures are not shown since they are not comparable/relevant to the current system. PRETREATMENT Objective: To monitor activities of wastewater contributors to insure that no discharge to system will cause a process upset. # of pretreatment permits 360 377 395 318 350 350 # of pretreatment inspections 259 277 280 288 275 275 # of lab samples collected 22 21 38 19 25 25

03/28/2007 Page 30

Water & Sewer

Department: Utilities Account: 30.25.76 Division \ Program: Water Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $1,762,850 $1,926,900 $1,995,200 $1,995,200 $68,300 3.5% Fringe Benefits 569,576 601,700 659,200 659,200 57,500 9.6% Operating Costs 1,896,668 1,835,700 2,126,700 2,126,700 291,000 15.9% Debt Service 768,986 901,700 1,100,200 1,100,200 198,500 22.0% Capital Outlay 7,768 12,900 5,100 5,100 (7,800)

• 60.5%

Capital Projects 35,907 16,500 16,500 16,500 NEW Capital Maintenance 16,425 23,500 (23,500) N\A Total Baseline $5,058,180 $5,302,400 $5,902,900 $5,902,900 $600,500 11.3% Program Enhancement/Expansion 158,700 158,700 158,700 NEW Total Expenditures $5,058,180 $5,302,400 $6,061,600 $6,061,600 $759,200 14.3%

4% 10% 16% 22%

• 60%

NEW N\A N/A

P e r s

• n

a l S e r v i c e s F r i n g e B e n e f i t s O p e r a t i n g C

• s

t s D e b t S e r v i c e C a p i t a l O u t l a y C a p i t a l P r

• j

e c t s C a p i t a l M a i n t e n a n c e P r

• g

r a m E n h a n c e m e n t

($50) $0 $50 $100 $150 $200 $250 $300 $350 Thousands

Water Expenditures Cost Variance to FY07

03/28/2007 Page 31 Program Enhancement/Expansion

New Position Request:

Grade Hire Date Salary Fringe Operating Capital Total Lab Tech I is needed for the additional workload associated with changes in NPDES permits for Mattawoman and Swan Point TPs and additional drinking water regulations pending implementation as a result of new "Safe Water Drinking Act" provisions. Lab Tech I TBD July 13,400 $4,400 $900 $18,700

Salary Market Adjustment:

96,700 21,400 118,100

New Request for Operating/Capital Outlay:

Electrical test bench for electrical motors, electrical apparatus, components Electrical Test Bench (split 3 ways) - Equip. Maint. 2,000 2,000 Replacement, but keeping old one for storage SCADA Server - Equip. Maint. (50%) 2,100 2,100 Laptop for SCADA system for remote maintenance. Laptop (split 2 ways) - Equip Maint. 700 700 Additional training funds for Electricians and Mechanical Maint staff Additional Training Funds- Equip. Maint. 6,700 6,700 Specialty tools for Equipment Maintenance Division Specialty Tools (split 3 ways) - Equip. Maint. 3,300 3,300 Replacement tools (already budget for this in the baseline; request is for additional) Replacement Tools (split 3 ways) - Equip Maint. 1,000 1,000 Paving Breaking (jack hammer, MX90) kit Paving Breaking (Jack Hammer, MX90) Kit - Line Maint. (50%) 500 500 Caustic soda scale for Chapel Point Caustic Soda Scale 1,900 1,900 Fence repair - Chapel Point Woods Fence Repair 2,300 2,300 Public education materials for Cross Connection Program (to be given away at County Fair) Public Education Materials 300 300 Digital camera for Project Manager Digital Camera (split 3 ways) - Support Services 200 200 For multi-project tracking Project Manager Software (split 3 ways) - Support Services 600 600 For Project Management AutoCad Lite (split 3 ways) - Support Services 300 300 Total Request $110,100 $25,800 $22,800 $0 $158,700 Total Program Enhancement/Expansion 158,700

03/28/2007 Page 32 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Director of Utilities 0.33 0.33 0.33 0.33 0.33 Chief of Operations 0.33 0.33 0.33 0.33 0.33 Chief of Maintenance 0.32 0.32 0.32 0.32 0.32 Assistant to Director of Utilities 0.33 0.33 0.33 0.33 0.33 Utilities Engineer 0.25 0.25 0.25 0.25 0.25 Laboratory Supervisor 0.33 0.33 0.33 0.33 0.33 Water Operations Superintendent 1.00 1.00 1.00 1.00 1.00 W/S Equipment Maintenance Supt. 0.33 0.33 0.33 0.33 0.33 Line Maintenance Superintendent 0.50 0.50 0.50 0.50 0.50 Line Maintenance Supervisor 2.50 2.00 2.00 2.00 2.00 Water Operations Supervisor 3.00 3.00 3.00 3.00 3.00 W/S Equipment Maintenance Supervisor 1.32 1.32 1.32 1.32 1.32 Electrician II 1.15 1.15 1.15 1.15 1.15 Laboratory Technician II 0.33 0.33 0.33 0.33 0.33 Fleet Maintenance Technician III 0.33 0.33 0.33 0.33 0.33 Personnel Administrator 0.33 0.33 0.33 0.33 0.33 Painter 0.33 0.33 0.33 0.33 0.33 Cross Connection Control Specialist 1.00 1.00 1.00 1.00 1.00 Meter Superintendent 0.00 0.25 0.25 0.25 0.25 Equipment Maintenance Technician II 1.32 1.32 1.32 1.32 1.32 Facilities Maintenance Technician II 0.33 0.33 0.33 0.33 0.33 Administrative Associate 0.99 0.99 0.99 0.99 0.99 Laboratory Technician I 0.99 0.99 0.66 0.66 1.00 Electrician I 0.16 0.16 0.16 0.16 0.16 Equipment Operator III 1.50 1.50 1.50 1.50 1.50 Supply Clerk II 0.33 0.33 0.33 0.33 0.33 Fleet Maintenance Technician II 0.33 0.33 0.33 0.33 0.33 Water Operator 8.00 8.00 9.00 9.00 9.00 Equipment Maintenance Technician I 1.65 1.65 2.31 2.31 2.31 Electrician Assistant 0.66 0.66 0.99 0.99 0.99 Facilities Maintenance Technician I 0.33 0.33 0.33 0.33 0.33 Line Maintenance Worker 4.50 2.50 2.50 2.50 2.50 Utility Locator 1.00 1.00 1.00 1.00 1.00 Office Associate II 0.33 0.33 0.33 0.33 0.33 Meter Technician 0.00 2.00 2.00 2.00 2.00 Total Full Time Equivalent 36.43 36.18 37.84 37.84 38.18

03/28/2007 Page 33

Water & Sewer

Department: Utilities Account: 30.25.76 Division \ Program: Water Fund: Enterprise Program Administrator: Jerry Michael, Director of Utilities Description The Water Division of the Department of Utilities provides water service to more than 26,000 customer accounts throughout the County, striving to insure a safe drinking water supply for all. As a result of growth throughout the County, rather than

• perating as one integrated system, the Division operates and maintains 19 separate community water systems, 4 Wastewater

Treatment Plant water systems, 5 County Park water systems, and 5 privately owned water systems. FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated WATER OPERATIONS Sites monitored/visited daily 64 70 70 70 71 71

• sites monitored/visited daily per FTE

5.82 6.36 6.09 6.36 5.92 6.45 Gallons pumped per day 5,985,650 6,143,951 6,300,000 6,580,995 6,300,000 6,500,000

• Gallons Per Day per FTE

544,150 558,541 547,826 598,272 572,727 541,667

• Ratio of water pumped to water billed

1.076 1.075 1.077 1.080 1.033 1.032 Gallons of free water 154,764,930 156,987,230 164,250,000 178,362,725 73,000,000 73,000,000

• Value of free water @ current rate

$284,767 $307,695 $343,283 $372,778 $167,900 $167,900 NOTE: In the above calculations, water pumped is from April through March to coincide with billing dates. Objective: To monitor quality of water supply per state and federal requirements. # of water samples processed 42,834 76,116 76,456 56,822 58,000 58,000 # of water samples contracted out 661 230 300 1,247 300 300 # of water samples per FTE 3,954 6,941 6,674 5,279 5,300 4,858 LINE MAINTENANCE Objective: To maintain water supply, and distribution equipment to insure an uninterrupted supply of water to all customers. Water Main Breaks Repaired

• # of incidents

28 22 25 32 35 40

03/28/2007 Page 34

Water & Sewer

Department: Planning and Growth Management Account: 30.07.06 Division \ Program: Water & Sewer Administration Fund: Enterprise Program Administrator: Chuck Beall, Jr. Acting Director of Planning & Growth Management FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services 210,398 $219,600 $212,900 $212,900 ($6,700)

• 3.1%

Fringe Benefits 65,540 69,400 72,200 72,200 2,800 4.0% Operating Costs 1,877 2,400 2,600 2,600 200 8.3% Operating Contingency 140,000 140,000 140,000 0.0% Total Baseline $277,815 $431,400 $427,700 $427,700 ($3,700)

• 0.9%

Program Enhancement/Expansion 12,900 12,900 $12,900 NEW Total Expenditures $277,815 $431,400 $440,600 $440,600 $9,200 2.1% Revenues 7,225 7,000 7,000 7,000 $0 0.0% Program Enhancement/Expansion Grade Hire Date Salary Fringe Operating Capital Total Salary Market Adjsutment 10,400 2,500 12,900 Total Request: 10,400 2,500 12,900 TOTAL PROGRAM ENHANCEMENTS $12,900 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Director of Planning Growth & Mgmt 0.20 0.20 0.20 0.20 0.20 Planner IV 0.10 0.10 0.10 0.10 0.10 Planner I - III 0.50 0.50 0.50 0.50 0.50 Assistant to Director of PGM 0.50 0.50 0.50 0.50 0.50 Water/Wastewater Permit Technician 1.00 1.00 1.00 1.00 1.00 Administrative Associate 0.20 0.20 0.20 0.20 0.20 Permits Specialist 1.00 1.00 1.00 1.00 1.00 Office Associate 0.20 0.20 0.20 0.20 0.20 Total Full Time Equivalent 3.70 3.70 3.70 3.70 3.70 Description The mission statement of the Department of Planning and Growth Management is: "To provide the citizens of Charles County an effective and economical infrastructure through planning, design and construction of facilities, roadways, water and waste water systems as described in the County's Master Plan. This shall be accomplished in a timely, efficient and courteous manner with dedication and quality service in cooperation with various departments within Charles County Government". Supporting the mission statement are various policies which provide a comprehensive approach to the orderly planning and development of infrastructure within Charles County. Using these policies, the Administration Division provides continuous evaluation of infrastructure needs and implement standards through updates to comprehensive plans, ordinances, policies, and procedures; maintain high standards of personnel efficiency and expertise to guarantee performance consistent with specialized obligations; develop and maintain a continuous program of education, promoting the most efficient use of the resources of the County pertaining to planning and growth management, the land necessary for roads, water and sewer, and facilities improvements, while emphasizing the socio-economic values of comprehensive land development and programming; improve recruitment and retention as another area of emphasis in developing a top flight staff. The responsibilities of the Administration Division include: bonds and developer agreements; budget administration; customer relations; dedication of roads, water and sewer systems; develop programs and procedures; grants administration; personnel administration; short and long range planning, sign record plats, utility permit approvals, Patapsco water supply; water conservation program; water and sewerage plan: technical support; WSSC water interconnection negotiations; allocation; consent orders; pretreatment program; sludge management program; Mattawoman failing septic areas; new facilities feasibility; Inflow and Infiltration program; recycling program; residential solid waste drop off stations; Pisgah residential well installations; hydrogeological study of Pisgah landfill; landfill closure plan; solid waste management plan: technical support. FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated Utility Permits Objective: to assure that fees are collected and that line sizing, length, type and meter size are in accordance with the Water and Sewer ordinance. Utility Permits Applications 454 657 630 839 700 700 Utility Permits Issued 568 541 570 775 750 650 (1 full time Utilities Technician)

03/28/2007 Page 35

Water & Sewer

Department: Planning and Growth Management Account: 30.07.61 Division \ Program: Development Services Fund: Enterprise Program Administrator: Michael Hinchy, Chief of Development Services FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $192,435 $214,300 $229,100 $229,100 $14,800 6.9% Fringe Benefits 53,814 62,400 68,300 68,300 5,900 9.5% Operating Costs 8,758 9,100 9,700 9,700 600 6.6% Total Baseline $255,007 $285,800 $307,100 $307,100 $21,300 7.5% Program Enhancement/Expansion 14,100 14,100 14,100 NEW Total Expenditures $255,007 $285,800 $321,200 $321,200 $35,400 12.4% Program Enhancement/Expansion Grade Hire Date Salary Fringe Operating Capital Total Salary Enhancement 11,500 2,600 14,100 Total Request: 11,500 2,600 14,100 TOTAL PROGRAM ENHANCEMENTS $14,100 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Chief of Development Services 0.25 0.40 0.40 0.40 0.40 Engineer I / II / III 1.20 1.20 1.20 1.20 1.20 Property Acquisition Officer 0.50 0.50 0.50 0.50 0.50 Right-of-Way Agent I 0.50 0.00 0.00 0.00 0.00 Right-of-Way Agent II 0.00 0.50 0.50 0.50 0.50 Administrative Associate 0.50 0.50 0.50 0.50 0.50 Office Associate 0.50 0.50 0.50 0.50 0.50 Total Full Time Equivalent 3.45 3.60 3.60 3.60 3.60 Description The policies of the Development Services Division provide for adequate stormwater management, stormwater conveyance facilities, water and sewer facilities, roads, and grading, through development and implementation of ordinances, standard specifications for construction, standard details and execution of plan review and inspections. The services performed by this department include: providing plan review and inspection for all subdivisions, building permits, capital improvements management, for grading, qualitative and quantitative stormwater maintenance, road, storm drainage and water and sewer construction to insure compliance with County ordinance standards; grading and drainage plan reviews of the site plans for building permits and responding to citizen's drainage concerns; providing plan reviews for private water and sewer projects as well as technical assistance for private water systems and review designs for the new county water and sewer projects.

03/28/2007 Page 36

Water & Sewer

Department: Planning and Growth Management Account: 30.07.61 Division \ Program: Development Services Fund: Enterprise Program Administrator: Michael Hinchy, Chief of Development Services FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated Division - Development Services: Development Services Review Inspections (all funds) Objective: to process in a timely manner all submittals to assure compliance with the Road, Grading, Stormwater Management, Flood plain, Water and Sewer Ordinances; Standard Specifications for Construction and Standard Detail Manuals. # of active projects reviewed: Roads 204 238 250 318 275 275 Water 157 220 175 296 250 250 Sewer 136 215 175 280 250 250 Stormdrain/Stormwater Mgt. 267 300 275 388 325 325 Grading 260 336 275 417 375 375 Equivalent FTE per Fiscal Year 10.77 10.62 12.00 11.67 14.0 15.0 # of projects inspected per FTE 95.1 123.2 95.8 145.6 105.4 98.3 Equivalent Length: Stormdrain/Stormwater Mgt. 385,468 553,138 543,276 499,264 540,693 450,000

• per FTE

123,547 177,288 174,127 160,021 173,299 144,231 Road 156,627 200,116 225,281 184,594 215,914 200,000

• per FTE

50,201 64,140 72,205 59,165 69,203 64,103 Water & Sewer 378,598 461,372 436,328 336,524 370,135 355,000

• per FTE

121,346 147,876 139,849 107,860 118,633 113,782 Total Equivalent Length 920,693 1,214,626 1,204,885 1,020,382 1,126,742 1,005,000

• per FTE

295,094 389,303 386,181 327,046 361,135 322,115 Dedications 207 209 230 256 200 200 Property Acquisition Requests(other than PGM) 23 22 25 39 25 40

03/28/2007 08 Capital Request.123 Capital: Page 37

TOTAL UTILITIES CAPITAL OUTLAY LISTING & NEW PERSONNEL IMPACT

Proposed Proposed Debt Proposed Direct Total Item Capital Lease Service( 1/2 year) Purchases DESCRIPTION Cost Meters Sewer Matta Water Meters Sewer Matta Water Meters Sewer Matta Water

Baseline:

Sewer tank truck U62; 1991 w/ 296,000 miles 135,000 135,000

15,200

Portable push camera (sewer lines) purchased FY93; tag 481 12,000 12,000

1,400

1/2 4WD pickup w/ snow equipment (50%) U96; 1998 w/ 190,000 miles 22,000 11,000 11,000

1,300

1,300 Portable light tower (50%) U79; purchased 1990 8,000 4,000 4,000

500

500 Glassware Washer/Dryer (33% ) purchased FY02 7,500 2,500 2,500 2,500 1/2 4WD pickup U88; 1996 w/ 220,000 miles 19,000 19,000 2,200 Refrigerator purchased FY98 8,000 2,700 2,700 2,600 1/2 4WD pickup U89; 1996 w/ 190,000 miles 19,000 19,000 2,200 Block digestor (33%) purchased FY98 5,500 1,800 1,800 1,900 200 200 200 1/2 4WD pickup (33%) U50; 1994 w/ 123,000 miles 19,000 6,300 6,300 6,400 700 700 700 1/2 4WD pickup (33%) U58; 1996 w/ 196,000 miles 19,000 6,300 6,400 6,300 700 700 700 1/2 4WD pickup U5; 1997 w/ 187,000 miles 19,000 19,000 2,200 1/2 4WD pickup w/ hydraulic lift U97; 1998 w/ 183,000 miles 25,000 25,000 2,800 Sub Totals 318,000 214,400 14,500 73,600 0 24,400 1,600 8,400 5,200 5,200 5,100

New Personnel Impact/Enhancements:

3/4 ton 4WD p/u

Wastewater Operator I

23,000 23,000 2,600 Supplies, Uniforms, Training, Radio 2,800 2,800 Tools, Supplies, Uniforms,

Lab Tech I

2,900 1,000 1,000 900 Tools, Supplies, Uniforms,

WW Operator Supervisor II

2,900 2,900 Equipment Lubrication Management Evaluation & Audit 18,000 18,000 Two Portable Spectrophotometers 6,700 6,700 Electrical Test Bench 6,000 2,000 2,000 2,000 Caustic Soda Scale 1,900 1,900 Fence Repair 2,300 2,300 SCADA Server 4,300 2,200 2,100 Paving Breaking (Jack Hammer, MX90) Kit 1,000 500 500 5x8 Cargo Trailer 3,200 3,200 5x8 Cargo Trailer 3,200 3,200 Gang Boxes 2,500 1,200 1,300 Laptop 1,500 800 700 Public Education Materials 300 300 Specialty Tools 10,000 3,300 3,400 3,300 Two Spare Gas Ejector Assemblies 900 900 Digital Camera 600 200 200 200 Project Manager Software 1,800 600 600 600 Additional Training Funds 20,000 6,700 6,600 6,700 Replacement Tools 3,000 1,000 1,000 1,000 Tools 5,000 5,000 Jar Tester 2,000 2,000 AutoCad Lite 800 300 200 300 Sub Totals

126,600 23,000

2,600 41,600 39,200 22,800 TOTAL

444,600

237,400 14,500 73,600 0 27,000 1,600 8,400 46,800 44,400 27,900

03/28/2007 Page 38

Capital Projects

Department: Planning & Growth Management Account: 30.07.32 Division \ Program: Capital Services Fund: Capital Program Administrator: Melvin (Chuck) Beall, Jr., Chief of Capital Services FY06 FY07 FY08 FY08 $ Change % Expenditure Category Actual Budget Request Proposed From FY07 Chg. Personal Services $640,488 $736,500 $780,100 $780,100 $43,600 5.9% Fringe Benefits 191,702 211,800 245,600 245,600 33,800 16.0% Operating Costs 1,475,500 1,361,500 1,552,400 1,552,400 190,900 14.0% Debt Service 3,000 5,800 5,800 2,800 93.3% Transfers Out (charged to capital projects) (2,303,006) (2,312,800) (2,630,100) (2,651,300) (338,500) 14.6% Total Baseline $4,684 $0 ($46,200) ($67,400) ($67,400) N\A Program Enhancement/Expansion 46,200 67,400 67,400 NEW Total Expenditures $4,684 $0 $0 $0 $0 0.0% Program Enhancement/Expansion Salary Fringe Operating Capital Total Salary Enhancement 37,700 8,500 46,200 4-door, 4x4 SUV to replace PGM 8 21,200 21,200 TOTAL PROGRAM ENHANCEMENT: $67,400 Personnel Summary: FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Title FTE FTE FTE FTE FTE Chief of Capital Services 0.50 1.00 1.00 1.00 1.00 Engineer IV 2.00 2.00 2.00 2.00 2.00 Engineer II 1.00 1.00 1.00 1.00 1.00 Right of Way Agent I 2.00 2.00 2.50 2.50 2.50 Utilities Engineer 0.13 0.13 0.13 0.13 0.13 Project Administrative Specialist 2.00 2.00 2.00 2.00 2.00 Office Associate II 1.00 1.00 1.00 1.00 1.00 Office Associate I 1.00 1.00 1.00 1.00 1.00 Paralegal 0.00 0.00 1.00 1.00 1.00 Part Time 0.15 0.15 0.15 0.15 0.15 Total Full Time Equivalent 9.78 10.28 11.78 11.78 11.78 Description implementation of infrastructure improvements within Charles County. These projects include roads, water, waste water, facilities, and environmental projects. The CIP Division is responsible for managing the capital improvements projects from the conceptual stages, onto design, through construction and start up. The CIP Division develops project estimates for budget purposes. The division coordinates design and construction with the user agency, Utilities, and Public Facilities to incorporate the user agency's operating requirements into the design of the facility while providing material and equipment that is compatible with the maintenance requirements of Utilities and Public Facilities. The Division administers construction projects to ensure that schedules are met and quality standards are achieved by contractors performing work for the county. The goals of the Capital Improvement Projects Division are to provide economical designs that satisfy the requirements of the end users while incorporating materials and equipment that enhance the maintenance of the systems, provide construction

• versight to ensure that projects are delivered on time and within budget, and meet the quality standards set forth in the

construction documents. FY04 FY05 FY06 FY06 FY07 FY08 Objectives & Measurements Actual Actual Projected Actual Projected Estimated Objective: to provide infrastructure planning, design and construction for roadways, water and waste water system, facilities and environment, as adopted in the County Master Plan. # of active projects. 65 72 71 72 73 73 Projects per FTE 4.33 4.36 3.55 4.00 4.30 4.30 $'s expended for A&E. 1,988,636 1,211,645 3,139,098 1,471,410 1,557,230 1,500,000 $'s expended for ROW 1,917,497 5,367,978 15,626,205 2,970,165 3,000,000 1,774,800 $'s expended for Construction 12,450,776 18,845,880 52,541,281 15,978,938 20,000,000 35,000,000 $'s expended for Inspection 1,132,296 1,639,216 3,670,141 1,700,047 2,000,000 1,921,143 $'s expended for Administration 601,707 562,980 1,200,000 724,388 1,200,000 2,600,000 $'s expended for Other 1,046,652 202,594 1,200,000 719,325 950,000 1,000,000 Change orders as % of construction costs 4.0% 11.0% 10.0% 12% 10% 10% # of contracts administered. 131 131 150 152 160 160 # of ROW transactions executed 60 64 150 65 65 80

• Avg. days to acquire ROW

365 365 365 365 365 365