january 2015 financial report - msd

Louisville and Jefferson County Metropolitan Sewer District

Financial ReportJanaury 2015

MSDM e t r o p o l i t a n S e w e r D i s t r i c t

A publication of MSD Finance Department

METROPOLITAN SEWER DISTRICT MONTHLY FINANCIAL REPORT

JANUARY 2015

Table of Contents

Performance Metrics: ...................................................................................................................................... 1

Financial Statements: Financial Overview ..................................................................................................................................... 2-3 Statement of Revenue, Expense & Change in Net Position ........................................................................... 4 Statement of Net Position .............................................................................................................................. 5

Operating and Capital Expenses: Operating Budget Performance YTD............................................................................................................. 6 Monthly Operating Expenditures ................................................................................................................... 7 Summary of MSD Operating Expenses ......................................................................................................... 8 Detail of MSD Operating Expenses ........................................................................................................ 9 - 10 MSD Staffing ............................................................................................................................................... 11 MSD Overtime Analysis .............................................................................................................................. 12 MSD Bid Variance ....................................................................................................................................... 13 MSD Maple Street Project Expense Summary ........................................................................................... 14 MSD Capital Budget Performance .............................................................................................................. 15 MSD Monthly Capital Spending by Type ................................................................................................... 16 MSD Annual Capital Spending by Type ..................................................................................................... 17

Customers: MSD’s Operating Revenue .......................................................................................................................... 18 Wastewater Customer Count ....................................................................................................................... 19 New Customer Count ................................................................................................................................... 20

Capital Markets: Market Rates ......................................................................................................................................... 21 - 22 Kentucky Municipal Market Update ............................................................................................................ 23 MSD Investment by Category ...................................................................................................................... 24 Muni Bond Investments ............................................................................................................................... 25 MSD Commercial Paper .............................................................................................................................. 26 MSD Current Investment Model .................................................................................................................. 27 Mark to Market Valuation of SWAPS ......................................................................................................... 28

Performance Metrics Details: Operating Budget Expenditures ................................................................................................................... 29 Capital Expenditures .................................................................................................................................... 30 Regulatory .................................................................................................................................................... 31 Safety ........................................................................................................................................................... 32 Diversity ....................................................................................................................................................... 33

Miscellaneous: Monthly P-Card Spending ........................................................................................................................... 34 Top 10 Goods & Services Purchasing Contracts ......................................................................................... 35 MBE/WBE Expenditure Report ................................................................................................................... 36 Board Approvals for Operating and Capital Expenditures .......................................................................... 37 Board Approvals for Operating and Capital Expenditures - Monthly ......................................................... 38 Board Approvals for Operating and Capital Expenditures - YTD ............................................................... 39

FY 2015 MSD Performance Metrics

Data Supplied by: Saundra GibsonJanuary 16, 2015

July August September October November December January February March April May June

FY14 YTD Performance Goal 103.2% 91.4% 93.2% 94.1% 92.3% 92.9% 92.3% 92.9% 92.9% 92.8% 91.2% 93.4%

FY15 YTD Performance Goal 80.4% 84.7% 86.3% 85.9% 87.3% 90.7% 89.2%

78.0%

83.0%

88.0%

93.0%

98.0%

103.0%

108.0%

% of Goal Target

95.1 - 100%

Operational Expense




50.0%

70.0%

90.0%

110.0%

130.0%

150.0%

% of Goal Target

75% - 84.9%

Capital Expense FY15 $117,859,314

FY15 $115,975,014




85.0%

91.0%

97.0%

103.0%

% of Goal Target

92.1% - 94.9%

Regulatory Violation Free Months




67.0%

80.5%

94.0%

107.5%

121.0%

% of Goals Target

90.1% - 100%

Safety Lost Time/Prevent Acc /OSHA




75.0%

85.0%

95.0%

105.0%

115.0%

125.0%

135.0%

% of Goals Target

95.1% - 114.9%

Diversity MBE/WBE Expenditures

1

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MSD FINANCIAL OVERVIEW

REVENUE & EXPENSE ANALYSIS JANUARY 2015

REVENUES:

Revenue YTD YTD Variance % FYTD 2015 FY 2015 %(thousands) FY 2015 FY 2014 Change Budget Budget Var

Wastewater 100,729 98,417 2,312 2.35% 101,712 (983) -0.97%Stormwater 29,329 28,364 965 3.40% 30,611 (1,282) -4.19%Other 2,763 2,603 160 6.15% 4,295 (1,532) -35.66%Total Operating Revenue 132,821$ 129,384$ 3,437$ 2.66% 136,618$ (3,797)$ -2.78%

• Total Operating Revenue for FY 2015 was $132.8 million compared to $129.4 million for the same period last year, an increase of $3.4 million or 2.7% and is $3.8 million or 2.8% less than budgeted revenues.

• Wastewater Service Charges totaled $100.7 million for the year. This is an increase of $2.3

million or 2.4% from last year and $1.0 million or 1.0% less than budget.

• Stormwater service charges were $29.3 million for the year, an increase of $1.0 million or 3.4% from last year and 4.2% less than budget.

• Other income was $2.8 million or 6.2% more than the amount recorded one year ago and is $1.5

million or 35.7% less than budget

OPERATING EXPENSES:

Expenses YTD YTD Variance % FYTD 2015 FY 2015 %(thousands) FY 2015 FY 2014 Change Budget Budget Var

Service & Admin Costs 40,450 41,249 (799) (1.94%) 45,132 (4,682) -10.37%Depreciation 37,450 37,226 224 0.60% 37,333 117 0.31%Total Operating Expenses 77,900$ 78,475$ (575) (0.73%) 82,465$ (4,565)$ -5.54%

• Service & Administrative Costs of $40.5 million for FY 2015 were $0.8 million or 2.0% less than the same period last year and $4.7 million or 10.8% less than FYTD budget.

• Total Operating Expense for FY 2015 was $77.9 million which is 0.7% or $0.6 million less than the same period last year and 5.5% or $4.6 million less than FYTD budget.

Submitted by: Maria Mullaney February 12, 2015

2

MSD FINANCIAL OVERVIEW NET INCOME ANALYSIS

JANUARY 2015

NET INCOME:

YTD YTD Variance % FYTD 2015 FY 2015 %(thousands) FY 2015 FY 2014 Change Budget Budget Var

Net Operating Income 54,921 50,909 4,012 7.88% 54,153 768 1.42%Investment Income 13,151 9,812 3,339 34.03% 11,074 2,077 18.76%Interest Expense (42,106) (36,036) (6,070) 16.84% (47,103) 4,997 (10.61%)Other Non-operating (7) 1,901 (1,908) (7) Net Income before Swaps 25,959 26,586 (627) (2.36%) 18,124 7,835 43.23%Change in Fair Value/Swap (24,831) 4,228 (29,059) (687.30%) (24,831) Total Net Income 1,128$ 30,814$ (29,686)$ (96.34%) 18,124$ (16,996)$ (93.78%)

• Net Operating Income for FY 2015 is $54.9 million compared to $50.9 million for the same period last year, an increase of $4.0 million or 7.9% and is $0.8 million or 1.4% more than budget for this period.

• Investment Income for FY 2015 of $13.2 million is $3.3 million or 34.0% more than the same period last year. This increase is primarily due to an un-realized market value gain of $3.3 million on municipal securities in FY 2015 versus an un-realized loss of $0.2 million in fiscal year 2014. FYTD investment income is $2.1 million or 18.8% more than budget.

• Interest Expense for FY 2015 is $6.1 million or 16.8% more than the same period last year. This

increase is due to a decrease to capitalized interest of $4.2 million in FY 2015 and additional interest expense of $2.0 million for the 2013C Revenue Bonds. FYTD interest expense is $5.0 million or 10.6% less than budget.

• Net Income before Swaps totaled $26.0 million compared to $26.6 million for the same period last year, a decrease of $0.6 million or 2.4% and is $7.8 million or 43.2% more than budget for this period.

• Total Net Income/(loss) including non-operating revenue and MTM change on swaps totaled $1.1 million compared to $30.8 million for the same period last year, a decrease of $29.7 million or 96.3% and is $3.7 million or 26.0% less than budget for this period. These results are primarily due to a MTM loss in FY 2015 on swaps of $24.8 million vs. a MTM gain in FY 2014 of $4.2 million.

Submitted by: Maria Mullaney February 12, 2015

3

STATEMENT OF REVENUE, EXPENSE & CHANGE IN NET POSITION, JANUARY 31, 2015YTD YTD

JANUARY 2015 JANUARY 2014 VARIANCE % JANUARY 2015 JANUARY 2014 VARIANCE % Sewer Charges

6,983,122 8,253,164 (1,270,041) (0.15) Residential 54,611,737 52,957,918 1,653,819 0.03

6,136,460 5,701,469 434,991 0.08 Commercial 39,052,548 36,013,501 3,039,047 0.08

1,472,007 1,659,429 (187,422) (0.11) Industrial 10,388,971 11,296,190 (907,219) (0.08)

(635,547) 264,489 (900,035) (3.40) Other 791,754 1,577,854 (786,100) (0.50)

(644,283) (320,948) (323,335) 1.01 Free Sewer Charges (4,115,998) (3,429,110) (686,888) 0.20

13,311,759 15,557,602 (2,245,843) (0.14) Total Sewer Charges 100,729,012 98,416,352 2,312,660 0.02

3,855,374 4,382,518 (527,144) (0.12) Drainage Charges 29,328,607 28,364,323 964,284 0.03

17,167,133 19,940,120 (2,772,987) (0.14) Total Service Charges 130,057,619 126,780,675 3,276,943 0.03

558,757 408,302 150,455 0.37 Other Operating Income 2,763,123 2,603,312 159,811 0.06

17,725,890 20,348,422 (2,622,532) (0.13) Total Operating Revenue 132,820,741 129,383,987 3,436,754 0.03

Operating Expenses3,267,305 3,403,030 (135,725) (0.04) Salaries & Wages 22,462,944 22,826,681 (363,737) (0.02)

1,184,357 1,328,931 (144,574) (0.11) Labor Related Overhead 9,107,592 9,597,741 (490,149) (0.05)

1,206,065 1,129,271 76,794 0.07 Utilities 7,003,791 7,879,772 (875,981) (0.11)

615,392 642,393 (27,001) (0.04) Materials & Supplies 4,817,215 4,484,934 332,281 0.07

1,450,837 1,752,194 (301,358) (0.17) Contractual Services 9,940,255 10,632,516 (692,261) (0.07)

286,386 372,412 (86,026) (0.23) Chemicals 2,042,628 1,877,779 164,849 0.09

107,328 134,884 (27,556) (0.20) Fuel 945,659 1,042,017 (96,358) (0.09)

109,843 180,215 (70,373) (0.39) Insurance Premiums & Claims 894,652 973,649 (78,997) (0.08)

221,100 170,296 50,803 0.30 Bad Debt 1,241,796 1,045,361 196,435 0.19

36,788 77,677 (40,890) (0.53) Other Operating Expense 361,953 431,495 (69,542) (0.16)

(465,137) - (465,137) Mapping Recovery (465,137) (447,685) (17,452) (2,600,406) (2,804,456) 204,050 (0.07) Capitalized Overhead (17,903,500) (19,095,244) 1,191,744 (0.06)

- - - Capital Expenses (over)/under applied - - - 5,419,857 6,386,849 (966,992) (0.15) Total Service and Administrative Costs 40,449,849 41,249,016 (799,167) (0.02)

5,176,138 5,158,070 18,069 0.00 Depreciation 36,684,425 36,385,872 298,553 0.01108,756 128,174 (19,418) (0.15) Amortization 765,616 840,200 (74,584) (0.09)

5,284,895 5,286,244 (1,349) (0.00) Total Depreciation/Amortization 37,450,041 37,226,073 223,969 0.01

10,704,751 11,673,093 (968,341) (0.08) Total Operating Expenses 77,899,890 78,475,089 (575,198) (0.01)

7,021,139 8,675,329 (1,654,191) (0.19) Net Operating Income 54,920,851 50,908,898 4,011,953 0.08

Non-Operating Revenue (Expenses)(6,691) - (6,691) Gain/Loss Disposal of Assets (6,691) - (6,691)

3,282,229 3,517,992 (235,762) (0.07) Investment Income 13,151,458 9,811,600 3,339,857 0.34(6,227,307) (5,368,794) (858,513) 0.16 Interest Expense (42,106,607) (36,035,716) (6,070,891) 0.17

(2,951,769) (1,850,803) (1,100,966) 0.59 Total Non-Operating Revenue (Expenses) (28,961,841) (26,224,116) (2,737,725) 0.10

- - - Contributions - 1,901,463 (1,901,463) (1.00) 4,069,369 6,824,526 (2,755,157) (0.40) Change in Net Position before change in Swaps 25,959,011 26,586,245 (627,235) (0.02)

(13,406,357) (7,586,761) (5,819,597) 0.77 Change in Fair Value of Swaps (24,830,788) 4,227,918 (29,058,706) (6.87)(9,336,988) (762,234) (8,574,753) 11.25 Change in Net Position after change in Swaps 1,128,223 30,814,164 (29,685,941) (0.96)

4

STATEMENT OF NET POSITION, JANUARY 31, 2015Reporting period Reporting period

JANUARY 2015 JUNE 2014 VARIANCE Current Assets Unrestricted Cash & Cash Equivalents 77,256,348 84,879,792 (7,623,444) (0.09) Sewer & Drainage Receivable 16,500,000 14,323,549 2,176,452 0.15 Assessment Warrants Receivable 883,100 1,830,268 (947,168) (0.52) Miscellaneous Receivables 6,168,564 5,655,371 513,194 0.09 Inventories 3,850,809 3,808,106 42,703 0.01 Prepaid Expenses 1,340,592 1,437,389 (96,797) (0.07) Restricted Funds 234,696,801 160,723,431 73,973,370 0.46 Accrued Interest Receivable 1,198,685 1,198,685 - 0.00 Total Current Assets 341,894,900 273,856,590 68,038,310 0.25

Non-Current Assets Utility Plant in Service 2,764,905,297 2,753,761,748 11,143,549 0.00 Accumulated Depreciation (983,148,947) (946,426,412) (36,722,535) 0.04 Construction in Progress 527,370,761 463,166,825 64,203,936 0.14 Net Fixed Assets 2,309,127,111 2,270,502,161 38,624,950 0.02

Non-Current Receivables 33,310,249 33,500,266 (190,017) (0.01)

Total Assets 2,684,332,260 2,577,859,017 106,473,243 0.04

Total Deferred Outflow of Resources 16,655,667 17,810,582 (1,154,915) (0.06)

Total Assets & Deferred Outflow of Resources 2,700,987,927 2,595,669,599 105,318,328 0.04

Current Liabilities Miscellaneous Accounts Payable 5,522,908 8,496,109 (2,973,201) (0.35) Accounts Payable - Construction 2,262,349 8,543,026 (6,280,677) (0.74) Contract Retainage 6,349,692 6,168,611 181,081 0.03 Accrued Interest Payable 18,426,872 12,833,726 5,593,146 0.44 Current Maturities of Bonds Payable 28,525,000 28,525,000 - 0.00 Bond Anticipation Notes 228,554,457 228,600,605 (46,149) (0.00) Deposits Payable 1,583,042 1,568,449 14,594 0.01 Accrued Salaries & Wages 918,486 1,266,993 (348,506) (0.28) Accrued Workers' Comp Insurance 1,728,014 1,728,014 - 0.00 Employee Comp Absences Payable 2,329,833 2,162,070 167,763 0.08 Total Current Liabilities 296,200,653 299,892,604 (3,691,950) (0.01)

Non-Current Liabilities Long-Term Debt Payable 1,629,700,000 1,549,700,000 80,000,000 0.05 Unamortized Debt Premium 64,752,918 61,023,830 3,729,088 0.06 Total Non-Current Liabilities 1,694,452,918 1,610,723,830 83,729,088 0.05

Total Liabilities 1,990,653,571 1,910,616,434 80,037,137 0.04

Total Deferred Inflow of Resources 106,446,251 82,293,284 24,152,968 0.29

Total Liabilities & Deferred Inflow of Resources 2,097,099,823 1,992,909,717 104,190,105 0.05

Net Position 603,888,104 602,759,882 1,128,223 0.005

Submitted by: Patrick Meador

2/13/2015

MSD Operating Budget Performanceas of 1/31/15

FY 2015

$103,945 $107,607

$111,795

$117,433 $115,281 $115,975

$100,353

$106,783 $106,587 $108,535 $107,650

$58,353 $56,826 $60,010

$61,512 $60,127 $60,344

5,750

25,750

45,750

65,750

85,750

105,750

125,750

YTD FY 2010 YTD FY 2011 YTD FY 2012 YTD FY 2013 YTD FY 2014 YTD FY 2015

Dol

lars

(th

ousa

nds)

Full Year Budget Full Year Actual YTD Current Month

6

Submitted by: Patrick Meador2/13/2015

BUDGET July August September October November December January February March April May June Total

FY09 Budget Performance 98,836,900 7,159,223 7,587,494 7,873,654 8,275,113 7,195,068 8,635,986 7,491,173 6,690,664 7,971,547 8,437,125 7,781,021 9,048,130 94,146,197






FY15 Budget Performance 115,975,014 6,671,498 8,194,713 8,687,684 8,082,296 8,685,086 10,012,260 8,019,812 0 0 0 0 0 0

( February Average & Actual results lower due to short period's impact on Salary & Labor Related Overhead expenses. )

ACTUALS

Actual Results versus Six Year Average

FY 2015MSD Operating Performance

as of 1/31/15

July August September October November December January February March April May June AVERAGE 7,512,033 8,312,353 8,728,940 8,629,238 8,311,246 8,554,450 8,791,233 7,516,293 9,017,905 8,720,765 8,841,739 10,990,471 FY15 Budget Performance 6,671,498 8,194,713 8,687,684 8,082,296 8,685,086 10,012,260 8,019,812

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

Dolla

rs

7


Operating Expenses FY15 Budget FY15 YTD Actual FY14 YTD ActualVariance Actual

to BudgetVariance Actual

to Prior Year

Salaries & Wages 23,499,202 22,462,644 22,826,681 (1,036,558) (364,037)Labor Related Overhead 10,466,605 9,108,503 9,597,741 (1,358,101) (489,238)Utilities 7,682,625 6,994,917 7,879,928 (687,708) (885,011)Materials & Supplies 4,686,713 3,976,295 7,169,486 (710,418) (3,193,191)Contractual Services 12,419,102 10,321,234 7,925,553 (2,097,868) 2,395,681Chemicals 2,420,243 2,042,523 1,875,856 (377,720) 166,667Fuel 1,136,492 946,059 1,042,017 (190,433) (95,958)Insurance Premiums & Claims 1,020,874 896,234 973,649 (124,640) (77,415)Bad Debt 1,166,667 1,241,796 1,045,361 75,130 196,435Other Operating Expense 929,871 346,349 410,899 (583,523) (64,551)System Roll-up Variance 0 16,794 (402,911) 16,794 419,705

TOTAL 65,428,393 58,353,348 60,344,260 (7,075,045) (1,990,912)

DIVISIONS FY15 Budget FY15 YTD Actual FY14 YTD ActualVariance Actual


to Prior Year

Engineering 5,005,607 4,572,663 n/a (432,944) n/aExecutive 1,678,091 1,379,233 n/a (298,858) n/aFinance 6,326,554 5,934,316 n/a (392,238) n/aHuman Resources 3,797,695 3,692,374 n/a (105,321) n/aInformation Technology 3,722,033 2,945,415 n/a (776,619) n/aLegal Services 1,138,379 853,783 n/a (284,596) n/aOPERATIONS GROUP 43,760,033 38,958,770 n/a (4,801,263) n/aSystem Roll-up Variance 0 16,794 n/a 16,794 n/a

TOTAL 65,428,393 58,353,348 0 (7,075,045) 0

OPERATIONS GROUP FY15 Budget FY15 YTD Actual FY14 YTD ActualVariance Actual


to Prior Year

COLLECTIONS - (Metro) 10,235,744 8,833,011 n/a (1,402,734) n/a DRAINAGE & FP - (I&FP) 8,414,045 6,583,577 n/a (1,830,467) n/a PERFORMANCE 56,412 736,795 n/a 680,383 n/a SUPPORT - (Phy Assets) 5,504,698 4,297,534 n/a (1,207,164) n/a TREATMENT - (MFWTP) 19,549,134 18,507,853 n/a (1,041,281) n/a

Operations Group Total 43,760,033 38,958,770 0 (4,801,263) 0

Summary of MSD Operating Expenseas of 1/31/15

FY 2015

8

Submitted by:Patrick Meador

2/13/2015

Operating Expenses FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act

Salaries & Wages 3,444,092 3,265,285 164,277 935,012 984,263 1,002,515 944,958 1,174,472Labor Related Overhead 1,363,457 1,152,690 404,957 120,920 397,727 348,299 1,411,580 1,220,497Utilities 0 18,813 1,050 0 0 7 387,259 325,133Materials & Supplies 92,792 71,865 55,016 3,343 40,673 38,548 122,264 116,266Contractual Services 54,717 42,377 715,425 43,472 2,808,268 2,661,523 877,952 834,885Chemicals 0 0 0 0 0 0 0 0Fuel 0 0 0 0 0 0 0 0Insurance Premiums & Claims 0 0 0 113,734 877,044 632,758 0 0Bad Debt 0 0 0 0 1,166,667 1,241,796 0 0Other Operating Expense 50,550 21,633 337,366 162,751 51,912 8,871 53,683 21,121Settlement Accounts 0 0 0 0 0 0 0 0System Roll-up Variance 0 0 0 0 0 0 0 0Total 5,005,607 4,572,663 1,678,091 1,379,233 6,326,554 5,934,316 3,797,695 3,692,374

Operating Expenses FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act

Salaries & Wages 1,449,057 1,165,719 378,406 355,979 16,134,149 14,563,663 23,499,202 22,462,644Labor Related Overhead 559,550 401,116 129,175 106,887 6,200,159 5,758,093 10,466,605 9,108,503Utilities 272,328 261,181 0 0 7,021,988 6,389,782 7,682,625 6,994,917Materials & Supplies 227,309 181,738 17,829 13,680 4,130,830 3,550,854 4,686,713 3,976,295Contractual Services 1,125,595 899,936 413,465 317,256 6,423,681 5,521,785 12,419,102 10,321,234Chemicals 0 0 0 0 2,420,243 2,042,523 2,420,243 2,042,523Fuel 0 0 0 0 1,136,492 946,059 1,136,492 946,059Insurance Premiums & Claims 0 0 143,830 36,659 0 113,083 1,020,874 896,234Bad Debt 0 0 0 0 0 0 1,166,667 1,241,796Other Operating Expense 88,195 35,724 55,674 23,321 292,491 72,927 929,871 346,349Settlement Accounts 0 0 0 0 0 0 0 0System Roll-up Variance 0 0 0 0 0 0 0 16,794Total 3,722,033 2,945,415 1,138,379 853,783 43,760,033 38,958,770 65,428,393 58,353,348

ENGINEERING

INFORMATION TECHNOLOGY OPERATIONS GROUPLEGAL TOTAL

EXECUTIVE FINANCE HUMAN RESOURCES

Detail of MSD Operating Expenseas of 1/31/15

9

Submitted by:Patrick Meador

2/13/2015

Operating Expenses FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act

Salaries & Wages 5,661,633 4,790,895 2,967,672 2,211,718 33,876 532,533Labor Related Overhead 2,247,262 1,846,384 1,220,141 1,155,096 16,487 203,195Utilities 58,333 51,985 1,498,670 970,677 0 0Materials & Supplies 1,211,131 1,007,018 302,795 286,514 2,550 282Contractual Services 966,508 803,622 2,057,890 1,947,238 0 0Chemicals 1,050 203,032 313,826 0 0 0Fuel 4,667 0 18,000 3,812 0 0Insurance Premiums & Claims 0 107,203 0 5,880 0 0Bad Debt 0 0 0 0 0 0Other Operating Expense 85,160 22,873 35,050 2,643 3,500 785Settlement Accounts 0 0 0 0 0 0System Roll-up Variance 0 0 0 0 0 0Total 10,235,744 8,833,011 8,414,045 6,583,577 56,412 736,795

Operating Expenses FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act FY15 Budget FY15 YTD Act

Salaries & Wages 2,263,456 1,731,252 5,207,512 5,297,265 16,134,149 14,563,663Labor Related Overhead 875,154 664,223 1,841,115 1,889,196 6,200,159 5,758,093Utilities 72,460 54,277 5,392,525 5,312,844 7,021,988 6,389,782Materials & Supplies 915,725 719,151 1,698,630 1,440,346 4,130,830 3,453,310Contractual Services 216,213 169,800 3,183,069 2,699,070 6,423,681 5,619,729Chemicals 0 0 2,105,366 1,839,491 2,420,243 2,042,523Fuel 1,110,900 941,447 2,925 400 1,136,492 945,659Insurance Premiums & Claims 0 0 0 0 0 113,083Bad Debt 0 0 0 0 0 0Other Operating Expense 50,790 17,384 117,991 29,243 292,491 72,927Settlement Accounts 0 0 0 0 0 0System Roll-up Variance 0 0 0 0 0 0Total 5,504,698 4,297,534 19,549,134 18,507,853 43,760,033 38,958,770

Detail of MSD Operating Expenseas of 1/31/15

DRAINAGE & FP

TREATMENT

PERFORMANCE MATRIX

OPERATIONS GROUP

COLLECTIONS

SUPPORT

10


UNION NON-UNION HEADCOUNT FY15 BUDGET

ENGINEERING 0.0 81.0 81.0 83.0EXECUTIVE 0.0 24.0 24.0 28.0FINANCE 0.0 25.0 25.0 29.0HUMAN RESOURCES 0.0 18.0 18.0 24.0INFORMATION TECH 0.0 23.0 23.0 35.0LEGAL 0.0 7.0 7.0 9.0OPERATIONS 285.0 127.0 412.0 447.0

ALL DIVISIONS 285.0 305.0 590.0 655.0

Prior Month - July 286.0 314.0 600.0 655.0Prior Month - August 283.0 313.0 596.0 655.0Prior Month - September 284.0 311.0 595.0 655.0Prior Month - October 283.0 311.0 594.0 655.0Prior Month - November 281.0 312.0 593.0 655.0

FY 2015

JANUARYMSD STAFFING

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN

FY14 BUDGET HEADCOUNT UNION NON-UNION

11

MSD's Overtime AnalysisJanuary, 2015

Total Overtime % of Total OvertimeHome Office 61,637.77$ 2.41%Infrastructure and Flood Proc. Div. 804,514.51$ 31.44% Fiscal Year 2014MFWTP Oper. and Maintenance 976,302.51$ 38.16% Total Overtime 2,558,570.39$ Metro Oper. and Maintenance 462,140.08$ 18.06% Total Salary 38,344,348.42$

Physical Assets Div. 40,224.38$ 1.57%Overtime Percentage of Total Salary 6.67%

Regulatory Services Div. 90,096.03$ 3.52%Engineering Div. 123,655.11$ 4.83%

Jan YTD FY'15 Jan YTD FY'14 VarianceHome Office 44,732.23$ Home Office 40,585.03$ Drainage and Flood Protection 87,883.04$ Infra. and Flood Proc. Div. 492,776.15$

Treatment 676,215.27$ MFWTP Op. and Maintenance 609,564.87$

Collections 145,734.53$ Metro Oper. and Maintenance 257,674.26$ Support 348,707.87$ Physical Assets Div. 12,702.85$ Engineering 65,062.56$ Engineering Div. 77,139.00$

Regulatory Services Div. 67,099.30$

Total Overtime 1,368,335.50$ Total Overtime 1,557,541.46$ -$189,205.96

Total Overtime vs. Total Salary for Fiscal Year 2014Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 YTD 2015

Total Overtime 190,123.37$ 195,203.03$ 175,543.12$ 159,605.23$ 214,961.96$ 209,372.49$ 223,526.30$ -$ -$ -$ -$ -$ 1,368,335.50$

Total Salary 2,890,030.91$ 4,283,297.53$ 2,931,363.22$ 3,551,663.71$ 2,942,926.45$ 3,182,507.08$ 3,674,274.31$ -$ -$ -$ -$ -$ 23,456,063.21$ Overtime % of Total Salary 6.58% 4.56% 5.99% 4.49% 7.30% 6.58% 6.08% 5.83%

Submitted by Chris Prentice 2/13/2015

Cannot Compute Variance for individual departments, as MSD's restructuing and reorganization altered depatments

MSD's Total Overtime for Fiscal Year 2014

Total OT/ Total Salary

MSD's Overtime Comparision YTD

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

MSD's Overtime for Fiscal Year 2013 Home Office Infrastructure and Flood Proc. Div. MFWTP Oper. and Maintenance Metro Oper. and Maintenance Physical Assets Div. Regulatory Services Div. Engineering Div.

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00


MSD's Overtime - June YTD FY 2014 Home Office Infrastructure and Flood Proc. Div. MFWTP Oper. and Maintenance Metro Oper. and Maintenance Physical Assets Div. Regulatory Services Div. Engineering Div.

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00


MSD's Overtime for Fiscal Year 2014 Home Office Infrastructure and Flood Proc. Div. MFWTP Oper. and Maintenance Metro Oper. and Maintenance Physical Assets Div. Regulatory Services Div. Engineering Div.

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00


MSD's Overtime Jan YTD FY 2015 Home Office Drainage and FP Treatment Collections Support Engineering

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00


MSD's Overtime -Jan YTD FY 2014 Home Office Infrastructure and Flood Proc. Div. MFWTP Oper. and Maintenance Metro Oper. and Maintenance Physical Assets Div. Regulatory Services Div. Engineering Div.

12

MSD's Bid Variance through January 2015

Created By: Kevin Schmidt2/12/2014

FY 14 Over/Under Total Variance

FY 15 Over/Under Total Variance

Mth FY14 Mth FY15 # OVER 56 39Jul-13 (82,293.00)$ Jul-14 11,751,042.78$ $ OVER 6,462,192.00$ 27,425,467.08$

Aug-13 (730,597.00)$ Aug-14 2,434,520.56$ % 16.87% 28.21%Sep-13 1,964,123.00$ Sep-14 5,545,906.15$

Oct-13 (694,813.00)$ Oct-14 (859,748.36)$

Nov-13 (831,491.00)$ Nov-14 325,921.74$ # UNDER 91 39Dec-13 571,817.00$ Dec-14 430,941.28$ $ UNDER (30,364,559.00)$ (6,608,626.09)$ Jan-14 (1,088,452.00)$ Jan-15 (1,188,870.53)$ % -32.51% -24.07%Feb-14 (5,269,826.00)$ Feb-15

Mar-14 (929,372.00)$ Mar-15 (23,902,367.00)$ 20,816,840.99$ Apr-14 (15,039,409.00)$ Apr-15

May-14 (1,645,566.00)$ May-15

Jun-14 (126,488.00)$ Jun-15

(23,902,367.00)$ 18,439,713.62$ TOTAL FY14 TOTAL FY15

Total variance reflects the difference of Estimate Cost vs. Board Approval by month for all service types.

FY 14 Variance by Month

FY 15 Variance by Month

Total YTD

$(20,000,000.00)

$(15,000,000.00)

$(10,000,000.00)

$(5,000,000.00)

$-

$5,000,000.00

$10,000,000.00

$15,000,000.00

BID

VA

RIA

NC

E

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 FY14 $(82,293.00) $(730,597.00) $1,964,123.00 $(694,813.00) $(831,491.00) $571,817.00 $(1,088,452.0 $(5,269,826.0 $(929,372.00) $(15,039,409. $(1,645,566.0 $(126,488.00) FY15 $11,751,042.7 $2,434,520.56 $5,545,906.15 $(859,748.36) $325,921.74 $430,941.28 $(1,188,870.5

Month to Month by Fiscal Year

13

MSD Maple Street ProjectExpense Reconcilliation

as of 01/31/2015

Prepared by:Christina Corley

02/09/2015

Purchase Price $4,683,518Closing Costs 84,892Appraisals 141,9352013 Property Taxes 8,072 *Fines 600 *Subtotal $4,919,016.04

Moving Costs $42,851Displacement Costs 154,322Subtotal $197,173.55

Lead & Asbestos $81,684Abatement 82,430Board up Homes 5,600 *Demolition 509,810Demolition - Retainage 51,425Subtotal $628,099.49

Project Management $245,414Legal Services 95,930Archaeological Study 106,700Subtotal $448,043.63

Project Total $6,192,332.71* Not a reimbursable expense

Maple Street Project Expense Breakdown

Property Acquisition Expenses

Demolition Expenses

Project Management/Services Expenses

Moving/Displacement Expenses

80%

3%10%

7%

Maple Street Project Expense SummaryProperty Moving/DisplacementDemolition Project Management/Legal

2

59

32

93

0

20

40

60

80

100

120

140

FY13 FY14 FY15 Total

Properties PurchasedTarget: 127

75%

12%

13%

Reimbursements for Approved Expenses Total Project Amount Submitted for Reimbursement

$3,674,135Total Reimbursed Expenses to Date

$3,674,135

Federal State MSD$440,896 $477,638$2,755,601

14

Submitted by: Patrick Meador 2/13/2015

$135,617 $163,823 $156,194 $150,662

$108,670 $117,859 $116,179 $138,311

$102,508 $90,283

$85,978

$46,300 $33,912 $68,557 $57,000 $45,964 $46,588

0

50,000

100,000

150,000

200,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Dol

lars

(th

ousa

nds)

FY 2015 MSD Capital Budget Performance

YTD as of 1/31/15

Full Year Budget Full Year Actual YTD Current Month

Planning/Design 14.95%

Easements -0.03%

Construction 77.87%

Equipment 6.55%

Labor 0.00%

Other 0.66%

MSD Capital Expenditures by Category Total Expenditures to Date:

$46,300,430

15


2015 July August September October November December January February March April May June Total Percentage

IOAP 6,096,532 6,975,721 1,186,858 11,130,272 6,371,146 9,918,927 4,608,741 0 0 0 0 0 46,288,197 72%Sanitary 529,795 2,475,179 617,925 2,987,929 1,891,324 2,054,147 5,084,817 0 0 0 0 0 15,641,116 24%Drainage 960,363 725,992 43,287 45,925 45,394 183,790 216,972 0 0 0 0 0 2,221,723 3%Floodwall 38,722 4,937 (7,193) (4,308) (1,345) 19,536 2,545 0 0 0 0 0 52,894 0%

Total 7,625,412 10,181,829 1,840,877 14,159,818 8,306,519 12,176,400 9,913,075 0 0 0 0 0 64,203,930 100%(Negative September / October spending caused by reversal of FY14 Capital accruals.)


IOAP 9,806,841 (90,026) 4,852,546 7,439,649 3,927,151 6,267,677 8,255,257 5,075,129 5,238,275 4,214,331 7,915,747 11,070,744 73,973,321 62%Sanitary 2,136,563 1,286,277 1,872,499 5,342,248 3,952,920 2,946,309 3,544,634 3,939,437 2,770,161 2,924,565 3,316,175 4,733,260 38,765,047 32%Drainage 194,007 (237,925) 2,153,213 807,252 506,540 194,867 58,480 175,636 249,928 461,670 209,747 1,455,555 6,228,970 5%Floodwall 55,682 27,550 43,579 71,149 13,126 158,398 33,108 (403) 82,838 100,153 8,834 80,523 674,536 1%

Total 12,193,092 985,876 8,921,837 13,660,298 8,399,737 9,567,252 11,891,478 9,189,799 8,341,201 7,700,719 11,450,503 17,340,083 119,641,875 100%


IOAP 5,700,370 529,406 4,051,546 5,870,303 5,262,884 2,175,617 4,671,571 3,396,553 4,419,463 4,563,843 6,574,245 11,034,956 58,250,756 49%Sanitary 3,235,418 1,428,950 1,804,255 8,523,240 3,556,014 8,192,277 5,036,608 5,779,540 2,852,605 3,118,845 3,168,210 7,788,675 54,484,636 46%Drainage 113,239 316,922 778,787 45,510 665,524 365,326 302,461 240,850 250,362 306,725 323,745 600,448 4,309,900 4%Floodwall 55,677 243,449 354,021 323,742 166,345 233,328 137,504 56,447 55,114 4,254 122,882 118,725 1,871,488 2%

Total 9,104,704 2,518,727 6,988,609 14,762,794 9,650,766 10,966,548 10,148,143 9,473,391 7,577,544 7,993,667 10,189,082 19,542,804 118,916,780 100%

IOAP: Integrated Overflow Abatement Plan

As of 1/31/15(Includes Capitalized Overhead)

MSD MONTHLY CAPITAL SPENDING BY TYPE

(2,000,000)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

July August Sept October November December January February March April May June

IOAP Sanitary Drainage Floodwall

16



IOAP 6,096,532 13,072,253 14,259,111 25,389,383 31,760,529 41,679,456 46,288,197 0 0 0 0 0 46,288,197 72%Sanitary 529,795 3,004,974 3,622,899 6,610,828 8,502,152 10,556,298 15,641,116 0 0 0 0 0 15,641,116 24%Drainage 960,363 1,686,355 1,729,642 1,775,567 1,820,961 2,004,751 2,221,723 0 0 0 0 0 2,221,723 3%Floodwall 38,722 43,659 36,466 32,158 30,813 50,349 52,894 0 0 0 0 0 52,894 0%

Total 7,625,412 17,807,241 19,648,118 33,807,936 42,114,455 54,290,855 64,203,930 0 0 0 0 0 64,203,930 100%


IOAP 9,806,841 9,716,815 14,569,361 22,009,010 25,936,161 32,203,838 40,459,095 45,534,224 50,772,499 54,986,830 62,902,577 73,973,321 73,973,321 62%Sanitary 2,136,563 3,422,840 5,295,339 10,637,587 14,590,507 17,536,817 21,081,450 25,020,887 27,791,048 30,715,612 34,031,787 38,765,047 38,765,047 32%Drainage 194,007 (43,918) 2,109,295 2,916,546 3,423,086 3,617,954 3,676,434 3,852,070 4,101,998 4,563,667 4,773,414 6,228,970 6,228,970 5%Floodwall 55,682 83,232 126,811 197,960 211,086 369,484 402,592 402,189 485,026 585,180 594,014 674,536 674,536 1%

Total 12,193,092 13,178,969 22,100,806 35,761,104 44,160,841 53,728,093 65,619,571 74,809,369 83,150,570 90,851,289 102,301,792 119,641,875 119,641,875 100%


IOAP 5,700,370 6,229,776 10,281,322 16,151,625 21,414,508 23,590,125 28,261,696 31,658,249 36,077,712 40,641,555 47,215,800 58,250,756 58,250,756 49%Sanitary 3,235,418 4,664,368 6,468,623 14,991,863 18,547,877 26,740,153 31,776,761 37,556,301 40,408,907 43,527,752 46,695,962 54,484,636 54,484,636 46%Drainage 113,239 430,161 1,208,948 1,254,458 1,919,982 2,285,308 2,587,769 2,828,620 3,078,982 3,385,706 3,709,452 4,309,900 4,309,900 4%Floodwall 55,677 299,126 653,147 976,889 1,143,234 1,376,562 1,514,066 1,570,513 1,625,627 1,629,881 1,752,763 1,871,488 1,871,488 2%

Total 9,104,704 11,623,431 18,612,040 33,374,834 43,025,601 53,992,149 64,140,292 73,613,683 81,191,227 89,184,894 99,373,976 118,916,780 118,916,780 100%

IOAP: Integrated Overflow Abatement Plan

MSD ANNUAL CAPITAL SPENDING BY TYPE(Includes Capitalized Overhead)

Years 2000 through 2014

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

IOAP SANITARY DRAINAGE FLOODWALL

17

MSD's Operating RevenueFY 2015

in 000'sResidental Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun YTD Totals %Sewer

Service Charge 2,581$ 2,518$ 2,596$ 2,975$ 2,147$ 2,815$ 2,425$ 18,057$ 27.53%Volume Charges 3,221 3,360 3,161 3,571 2,423 3,165.58 2,637 21,538 32.84%Quality Charges - - 0 - 0 - - 0 0.00%Meter Reading Charge 0 - 0 - 0 - - 1 0.00%Consent Decree Charge 2,164 2,117 2,120 2,469 1,880 2,345 1,921 15,016 22.90%

DrainageDrainage Fees 1,384 1,681 1,635 1,768 1,463 1,854 1,180 10,966 16.72%

9,350$ 9,677$ 9,512$ 10,783$ 7,912$ 10,180$ 8,164$ -$ -$ -$ -$ -$ 65,578$ 100.00%CommercialSewer

Service Charge 698$ 449$ 726$ 518$ 656$ 491$ 748$ 4,285$ 7.65%Volume Charges 4,161 2,999 4,542 3,216 3,824 2,968 3,966 25,675 45.82%Quality Charges 80 76 94 87 93 83 108 622 1.11%Meter Reading Charge 18 14 18 15 10 6 7 87 0.16%Consent Decree Charge 1,366 968 1,481 1,043 1,257 960 1,308 8,384 14.96%

DrainageDrainage Fees 2,357 2,498 2,323 2,757 2,112 2,537 2,398 16,984 30.31%

8,680$ 7,003$ 9,184$ 7,636$ 7,952$ 7,046$ 8,535$ -$ -$ -$ -$ -$ 56,036$ 100.00%IndustrialSewer

Service Charge 47$ 39$ 48$ 41$ 43$ 39$ 49 306$ 2.51%Volume Charges 562 554 666 773 613 641 650 4,459 36.45%Quality Charges 560 602.58 702 653 560 553 565 4,196 34.30%Meter Reading Charge 6 7 6 7 6 7 6 45 0.37%Consent Decree Charge 172 173 208 240 189 199 201 1,383 11.30%

DrainageDrainage Fees 281 233 293 253 259 230 295 1,844 15.07%

1,628$ 1,608$ 1,923$ 1,968$ 1,671$ 1,669$ 1,767$ -$ -$ -$ -$ -$ 12,233$ 100.00%Other Charges

(202)$ (84)$ 1,021$ (796)$ 1,226$ 262$ (636)$ 792$ Free ChargesFree Sewer (704)$ (504)$ (903)$ (430)$ (561)$ (370)$ (644)$ (4,116)$ Free Drainage (83)$ (113)$ (84)$ (120)$ (40)$ (7)$ (19)$ (465)$

14,729$ 13,290$ 16,485$ 14,383$ 14,366$ 14,165$ 13,312$ -$ -$ -$ -$ -$ 100,729$ 77.45%3,940 4,298 4,168 4,658 3,794 4,614 3,855 - - - - - 29,329 22.55%

18,670$ 17,588$ 20,653$ 19,041$ 18,160$ 18,779$ 17,167$ -$ -$ -$ -$ -$ 130,058$ 100.00%

Prepared By Chris Prentice 2/13/2015

Total Service Charges

Total Residental

Total Commercial

Total Industrial

Total SewerTotal Drainage

$(200,000.00)

$(150,000.00)

$(100,000.00)

$(50,000.00)

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$(5,000.00)

$-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

$40,000.00

$45,000.00

Jul FY14

Jul FY15

Aug FY14

Aug FY15

Sept FY14

Sept FY15

Oct FY14

Oct FY15

Nov FY14

Nov FY15

Dec FY14

Dec FY15

Jan FY14

Jan FY15

Feb FY14

Feb FY15

Mar FY14

Mar FY15

Apr FY14

Apr FY15

May FY14

May FY15

Jun FY14

Jun FY15

YTD Operating Revenue (000s)

Mon

thly

Ope

ratin

g Re

venu

e (0

00s)

Revenue Comparison - FY 2014 to FY 2015 Total Residental Total Commercial Total Industrial Other Charges Free Sewer/Drainage YTD 2014 YTD 2015

18

Louisville and Jefferson County Metropolitan Sewer District

Wastewater Customer Count

Plant Code Active Off Active Off Active Off Active Off80 LWC 49 0 29 0 0 0 78 0

140 LWC 60,151 1,323 3,691 140 23 0 63,865 1,463151 LWC 67,157 5,725 8,998 776 258 42 76,413 6,543152 LWC 49,502 514 4,782 134 49 3 54,333 651153 LWC 7,474 36 517 1 5 0 7,996 37158 LWC 22 1 2 0 0 0 24 1160 LWC 232 6 19 0 0 0 251 6164 LWC 389 6 0 0 0 0 389 6197 LWC 144 1 18 0 0 0 162 1206 LWC 5,849 6 888 2 12 0 6,749 8235 LWC 266 0 0 0 0 0 266 0237 LWC 10,760 69 231 6 0 0 10,991 75238 LWC 202 0 0 0 0 0 202 0239 LWC 1,509 9 31 1 0 0 1,540 10240 LWC 320 0 16 0 0 0 336 0244 LWC 166 0 0 0 0 0 166 0294 LWC 7,337 34 320 7 0 0 7,657 41

211,529 7,730 19,542 1,067 347 45 231,418 8,842

Submitted by: Adonis HendersonDate: 02/05/2015

Moser FarmFloyds Fork

JeffersontownGlen Oaks - Sec. 5 Only

Industrial Total

Grand Total

Service Area

Cedar CreekBancroftHunting CreekTimberlake

Hite Creek

Residential

Ken CarlaBerrytownMcNeely LakeStarview

Commercial

January, 2015

Shadow WoodDerek GuthrieMorris Forman - CityMorris Forman - County

19

New Customers Count

Submitted by: Adonis HendersonDate: 2/10/2015

Account Type JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL

86 58 85 23 119 92 3 0 0 0 0 0 4668 14 38 8 3 24 9 0 0 0 0 0 104

527 619 532 620 472 422 151 0 0 0 0 0 334317 12 25 18 25 9 6 0 0 0 0 0 112

638 703 680 669 619 547 169 0 0 0 0 0 4025

MSDSW-ADD SEWER TO WATER ACCOUNTMSDDR-DRAIN ONLY ACCOUNTMSDDA-ADD DRAIN TO WATER ACCOUNTMSDAC-CUSTOMER DRAIN/SEWER

MSDSWMSDDRMSDDAMSDAC

0

100

200

300

400

500

600

700

800

JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE

MSDSW

MSDDR

MSDDA

MSDAC

20

MARKET RATES

Data Supplied by: Saundra GibsonFebruary 12, 2015

21

http://www.fedprimerate.com/libor/libor_rates_history.htm#liborpreviousmonth�


MARKET RATES

Data Supplied by: Saundra GibsonFebruary 12, 201522


Kentucky Municipal Market Update

Market Commentary

Prepared by the Public Finance Department of Hilliard Lyons for the Louisville & Jefferson Metropolitan Sewer District

February 2015

Alex RorkeSenior Managing Director of Municipal Securities [email protected]

Greg PhillipsManaging [email protected]

Chip SutherlandSenior V.P. - Public Finance [email protected]

Brian ShawV.P. - [email protected]

Mark RawlingsV.P. - Head of Quantitative [email protected]

Kelly FlechlerPublic Finance [email protected]

Michael OldigesPublic Finance [email protected]

Andrew WebbPublic Finance Analyst [email protected]

Interest Rate Indexes (January 2014-Present)

Thomson Reuters Municipal Market Data (MMD) AAA Curve is a proprietary yield curve that provides the offer-side of “AAA” rated state general obligation bonds, as determined by the MMD analyst team. The “AAA” scale (MMD Scale) is published by Municipal Market Data every day at 3:00 p.m. eastern standard time with earlier indications of market movement provided throughout the trading day.

This index consists of 25 various revenue bonds that mature in 30 years. The average rating is roughly equivalent to Moody’s “A1” and S&P’s “A+.” This index provides an estimation of the yield that would be offered on 30-year revenue bonds. The 25 bonds used for this index cover a broad range of types of issues (transportation, housing, hospital, water and sewer, pollution control, etc.).

This index represents the return on investment of the U.S. government's debt obligations. Treasury rates determine the cost the Federal Government pays to borrow money for different lengths of time. Treasuries are considered a relatively low risk investment, as they are backed by the full faith and credit of the U.S. government.

0

1

2

3

4Y

ield

10 Year Treasury

33.5

44.5

55.5

6

Yie

ld

25 Year Revenue Index

0.1

0.12

0.14

0.16

0.18

0.2

Yie

ld

1 Year MMD Index

23

MSD Investments by CategoryJanuary 31, 2015

Total Cash & Market Face Cost Accrued MarketInvestments by Category Yield Value Value Value Interest Gain/Loss

Cash 36,133,465 36,133,465 36,133,465 - - FED HOME LN MTG CORP DEB 25,328,802 25,328,000 25,312,996 10,928 15,807 Municipal Obligations 4.3 - 4.7% 96,093,734 86,090,000 86,663,732 832,662 9,430,002 Commercial Paper 64,946,123 65,000,000 64,916,017 - 30,106 Fed Gov Oblig Fund (money mkt) .00 - .01% 48,854,869 48,854,869 48,854,869 - - Dreyfus Cash Mgmt (money mkt) .00 - .01% 17,855,779 17,855,779 17,855,779 - - FED NATL MTGE ASSN DISC NOTE 22,640,377 22,644,000 22,082,003 - 558,374 Certificate of Deposit 1.75% 100,000 100,000 100,000 - -

311,953,149$ 302,006,113$ 301,918,860$ 843,590$ 10,034,290$

Total earnings on investments FYTD 2015: 13,151,458$

Prepared by: Maria MullaneyFebruary 10, 2015

24

MSD's Muni Bond Investments JanuaryFY 2015

Maturity Date Market Value Par Value Cost Rating (Moody's) Market Yield Coupon Rate Yield to Maturity DurationAUSTIN TEX WTR & WASTEWATER 11/15/2040 5,857,750.00$ 5,000,000.00$ 5,087,981.25$ Aa2 4.49% 5.125% 4.22% 15.1BAY AREA TOLL AUTH CALIF TOLL 4/1/2034 3,413,340.00$ 3,000,000.00$ 3,060,416.67$ Aa3 4.45% 5.00% 4.07% 12.7BEAVERCREEK OHIO CITY SCH DIST 12/1/2036 1,412,497.80$ 1,260,000.00$ 1,232,343.00$ Aa2 4.47% 5.00% 4.17% 13.9CHICAGO ILL 1/1/2039 5,931,970.20$ 5,160,000.00$ 5,220,322.23$ Aa3 4.71% 5.00% 4.58% 14.4DALLAS TEX AREA RAPID TRAN 12/1/2036 2,148,720.00$ 2,000,000.00$ 1,983,888.89$ Aa3 4.46% 5.00% 4.15% 13.9FLORIDA ST BRD ED PUB ED 6/1/2037 1,494,084.60$ 1,380,000.00$ 1,309,373.13$ Aa1 4.33% 4.75% 4.09% 14.3HARRIS CNTY TEX FLOOD CTL DIST 10/1/2039 5,818,950.00$ 5,000,000.00$ 5,094,694.44$ Aa1 4.39% 5.00% 4.10% 14.9JEA FLA WTR & SWR SYS REV 10/1/2039 1,103,855.85$ 955,000.00$ 960,172.92$ Aa2 4.41% 5.00% 4.12% 14.8JEA FLA WTR & SWR SYS REV 10/1/2039 1,051,841.70$ 910,000.00$ 914,929.17$ Aa2 4.41% 5.00% 4.12% 14.8KING CNTY WASH SWR REV 1/1/2039 5,256,543.60$ 5,265,000.00$ 5,383,358.91$ Aa2 4.39% 5.00% 4.08% 14.8LAS VEGAS VALLEY NEV WTR DIST 2/1/2037 3,305,130.00$ 3,000,000.00$ 2,988,573.33$ Aa2 4.62% 5.00% 4.41% 13.9LOS ANGELES CALIF DEPT ARPTS 5/15/2040 5,731,800.00$ 5,000,000.00$ 4,791,850.00$ Aa3 4.46% 5.00% 4.21% 15.1LOS ANGELES CALIF DEPT WTR 7/1/2038 6,727,800.00$ 6,000,000.00$ 6,199,120.00$ Aa3 4.61% 5.25% 4.30% 14.3LOUISIANA ST GAS & FUELS TAX 5/1/2040 5,724,000.00$ 5,000,000.00$ 5,029,861.11$ Aa2 4.38% 5.00% 4.09% 15.1METROPOLITAN ATLANTA RAPID 7/1/2039 5,688,750.00$ 5,000,000.00$ 5,076,883.33$ A1 4.45% 5.00% 4.18% 14.9NEW YORK N Y CITY MUN WTR FIN 6/15/2037 4,468,844.10$ 4,110,000.00$ 4,110,000.00$ Aa2 4.43% 5.00% 4.11% 14.1NEW YORK N Y CITY MUN WTR FIN 6/15/2039 1,523,835.00$ 1,500,000.00$ 1,533,125.00$ Aa2 4.59% 5.00% 4.40% 14.7NEW YORK N Y CITY MUN WTR FIN 6/15/2039 2,252,160.00$ 2,000,000.00$ 1,975,480.00$ Aa2 4.39% 5.00% 4.10% 14.9PALM BEACH CNTY FLA PUB IMPT 5/1/2038 3,326,940.00$ 3,000,000.00$ 3,047,916.67$ Aa1 4.57% 5.00% 4.36% 14.2SALT RIVER PROJ ARIZ AGRIC 1/1/2038 2,196,660.00$ 2,000,000.00$ 2,030,331.11$ Aa1 4.51% 5.00% 4.25% 14.3SALT RIVER PROJ ARIZ AGRIC 1/1/2038 5,491,650.00$ 5,000,000.00$ 5,008,650.00$ Aa1 4.51% 5.00% 4.25% 14.3TEXAS ST 4/1/2018 484,446.60$ 430,000.00$ 462,984.69$ 4.14% 4.75% 0.08% 2.9TEXAS ST 4/1/2037 5,036,825.50$ 4,570,000.00$ 4,558,144.48$ Aaa 4.47% 4.75% 3.94% 14.2TRIBOROUGH BRDG & TUNL AUTH N 11/15/2037 887,112.00$ 800,000.00$ 794,403.56$ Aa3 4.41% 5.00% 4.09% 14.3TRIBOROUGH BRDG & TUNL AUTH N 11/15/2037 1,940,557.50$ 1,750,000.00$ 1,748,541.67$ Aa3 4.41% 5.00% 4.09% 14.3TRIBOROUGH BRDG & TUNL AUTH N 11/15/2038 7,817,670.00$ 7,000,000.00$ 7,060,386.67$ Aa3 4.42% 5.00% 4.13% 14.6

Totals: 96,093,734.45$ 86,090,000.00$ 86,663,732.23$ Average Years to Maturity: 23.38

Prepared By Chris Prentice 2/13/2015

4.19323% 14.51792

Asset Description

5.03224%Total Weighted Average Coupon Rates

4.49994%Total Weighted Average Market Yield

Total Weighted Average Yield to Maturity

Unrealized Gain in Total (Market Value - Cost)$9,430,002.22

Total Weighted Average Duration

25

MSD's Commercial Paper

MSD 0.1836AA Nonfinancial 0.114A2/P2 Nonfinancial 0.3725AA Financial 0.0949AA Asset-Backed 0.2143

Company Purchase Amount Maturity Amount Rate1

Institutional SF 24,990,833.33 25,065,833.32 0.300%Swedbank 9,994,286.00 10,011,276.29 0.170%Credit Agricole 9,981,831.00 10,013,273.77 0.315%Natixis 9,978,844.00 10,011,275.24 0.325%Abbey National 9,970,222.00 10,010,800.80 0.407%Total: 64,916,016.33 65,112,459.42 0.3026%

1 Total rate shown is MSD's weighted average CP rate at month's end

Prepared by Chris Prentice 2/13/2015

YTD Average Rate as of 4/5/2013

Outstanding as of 1/31/2015

0.0000%

0.1000%

0.2000%

0.3000%

0.4000%

0.5000%

0.6000%

MSD's Spread - Corporate Commercial Paper MSD Avg. CP Rate AA Nonfinancial CP A2/P2 Nonfinancial CP AA Financial CP AA Asset-Backed

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

Federal Funds Rate Fed Fund Target Rate Effective Fed Fund Rate

**Effective Fed Fund rate is a weighted average of rates on brokered trades

FOMC Meetings April 30 June 18 July 30 September 17 October 29 December 17

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

MSD's CP Purchases, Balance and 1 Mo. Buyer Rate vs. 1 Mo. LIBOR Purchases Maturities Outstanding CP Libor - 1 month MSD Avg. CP Rate

26

MSD's Current Investment Model - Jan FY 2015

Series Revenue Fund Debt Service Fund Debt Reserve Fund Construction Fund Cost of Issuance Totals2005A -$ 1,645,162.21$ -$ -$ -$ 1,645,162.21$ 2006A -$ 2,337,391.48$ -$ -$ -$ 2,337,391.48$ 2007A -$ 2,105,795.28$ -$ -$ -$ 2,105,795.28$ 2008A -$ 1,664,809.98$ 4,968,957.08$ -$ -$ 6,633,767.06$ 2009A -$ 4,402,154.05$ 11,617,945.82$ -$ -$ 16,020,099.87$ 2009B -$ 11,531,976.35$ 28,829,139.00$ -$ -$ 40,361,115.35$ 2009C -$ 2,243,593.19$ 24,873,989.08$ -$ -$ 27,117,582.27$ 2010A -$ 4,290,330.92$ 37,797,531.29$ -$ -$ 42,087,862.21$ 2011A -$ 3,975,196.66$ -$ -$ -$ 3,975,196.66$ 2013 BAN -$ 491,268.71$ -$ -$ -$ 491,268.71$ 2013A&B -$ 1,650,527.80$ 25,722,548.58$ -$ -$ 27,373,076.38$ 2013C -$ 984,735.89$ 5,344,030.02$ 9,083,245.68$ -$ 15,412,011.59$ 2014A -$ 336,895.55$ -$ 87,881,974.42$ -$ 87,807,012.00$ Cash 36,133,465.04$ -$ -$ -$ -$ 36,133,465.04$ Certificate of Deposit 100,000.00$ -$ -$ -$ -$ 100,000.00$ Money Market 5/3 1,940,485.19$ -$ -$ -$ -$ 1,940,485.19$ Commercial Paper -$ -$ -$ -$ -$ -$ Totals 38,173,950.23$ 37,659,838.07$ 139,154,140.87$ 96,965,220.10$ -$ 311,953,149.27$

Asset Description Revenue Fund Debt Service Fund Debt Reserve Fund Construction Fund Cost of Issuance TotalsCash 36,133,465.04$ -$ -$ -$ -$ 36,133,465.04$ Certificate of Deposit 100,000.00$ -$ -$ -$ -$ 100,000.00$ Money Market- 5/3 1,940,485.19$ -$ -$ -$ -$ 1,940,485.19$ Money Market-Dreyfus -$ 12,155,313.00$ 5,700,465.70$ -$ -$ 17,855,778.70$ Money Market-Federated PRM -$ 11,531,976.35$ 2,073,943.10$ -$ -$ 13,605,919.45$ Money Market-Federated Govt. Ob -$ 13,972,548.72$ 7,314,718.34$ 12,021,197.30$ -$ 33,308,464.36$ Muni-Bonds -$ -$ 96,093,734.45$ -$ -$ 96,093,734.45$ Fannie Mae-MBS -$ -$ 22,753,358.88$ -$ -$ 22,753,358.88$ Treasury - Agency -$ -$ 5,217,920.40$ 19,997,900.00$ -$ 25,215,820.40$ Commercial Paper -$ -$ -$ 64,946,122.80$ -$ 64,946,122.80$ Totals 38,173,950.23$ 37,659,838.07$ 139,154,140.87$ 96,965,220.10$ -$ 311,953,149.27$

Prepared by Chris Prentice 2/13/2015

12%

12%

45%

31%

0%

MSD's Fund Totals

Revenue Fund

Debt Service Fund

Debt Reserve Fund

Construction Fund

Cost of Issuance

16% 1%

8%

6%

15% 44%

10%

MSD's Asset Breakdown

Cash

Certificate of Deposit

Money Market- 5/3

Money Market-Dreyfus

Money Market-Federated PRM

Money Market-Federated Govt. Ob.

Muni-Bonds

Fannie Mae-MBS

27

Ccy Credit Support Provider Maturity Date

USD Wells Fargo Bank, NA 05/15/2033

USD Bank of America, NA 05/15/2033

Prepared by: Maria Mullaney

February 10, 2015

237,149,000 226,000,000 (98,065,222.09) (405,924.46) (98,471,146.55)

180,716,000 180,716,000 (78,430,598.13) (324,587.03) (78,755,185.16)

56,433,000

MTM VALUATION AS OF CLOSE 1/31/2015 Louisville and Jefferson County Metropolitan Sewer District

Initial Notional Current Notional Base Value* Accrued Net Value**

45,284,000 (19,634,623.96) (81,337.43) (19,715,961.39)Series 1999 - 2 -$56.433 67% LIBOR Fixed Payer Swap - Amended - 6/12/2013

Total USD Currency

Series 1999 - 1 -$225.732M 67% LIBOR Fixed Payer Swap - Amended - 6/12/2013

Description

28


Year to Date Totals O&M Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

FY10 YTD Total 103,944,700 7,386,999 15,535,638 24,022,056 33,116,630 41,400,328 48,348,949 56,825,847 64,345,408 72,885,864 81,860,785 90,191,344 100,353,399FY11 YTD Total 107,606,600 7,587,390 16,589,206 25,439,315 33,290,656 42,330,974 51,078,187 60,010,374 67,671,833 77,239,193 84,917,031 95,156,703 106,782,666FY12 YTD Total 111,795,300 6,938,802 16,201,752 24,902,770 33,479,442 42,814,484 51,935,981 61,511,843 69,073,118 78,407,069 87,058,106 96,507,485 106,587,246FY13 YTD Total 117,433,000 7,542,927 15,776,654 24,954,227 33,728,389 41,767,405 50,599,259 60,126,918 67,751,390 77,558,936 87,107,342 96,712,322 108,535,303FY14 YTD Total 115,280,596 8,456,854 16,096,345 25,381,204 34,584,770 42,559,114 51,600,642 60,344,260 68,384,591 77,766,147 86,691,675 94,446,233 107,650,171FY15 YTD Total 115,975,014 6,671,498 14,866,211 23,553,895 31,636,191 40,321,276 50,333,536 58,353,348 0 0 0 0 0

Percent Expended to Date

FY10 YTD Total 7.36% 15.48% 23.94% 33.00% 41.25% 48.18% 56.63% 64.12% 72.63% 81.57% 89.87% 100.00%FY11 YTD Total 7.11% 15.54% 23.82% 31.18% 39.64% 47.83% 56.20% 63.37% 72.33% 79.52% 89.11% 100.00%FY12 YTD Total 6.51% 15.20% 23.36% 31.41% 40.17% 48.73% 57.71% 64.80% 73.56% 81.68% 90.54% 100.00%FY13 YTD Total 6.95% 14.54% 22.99% 31.08% 38.48% 46.62% 55.40% 62.42% 71.46% 80.26% 89.11% 100.00%FY14 YTD Total 7.86% 14.95% 23.58% 32.13% 39.53% 47.93% 56.06% 63.52% 72.24% 80.53% 87.73% 100.00%

5 YEAR AVERAGE 7.16% 15.14% 23.54% 31.76% 39.82% 47.86% 56.40% 63.65% 72.44% 80.71% 89.27% 100.00%

Performance Matrix Results - FY 2014

FY14 Budget comparative on 5 YEAR AVERAGE 8,191,960 17,618,674 27,239,264 36,769,649 46,113,834 55,563,106 65,369,171 73,644,801 83,727,383 93,413,051 103,527,850 115,280,596FY14 YTD Total 8,456,854 16,096,345 25,381,204 34,584,770 42,559,114 51,600,642 60,344,260 68,384,591 77,766,147 86,691,675 94,446,233 107,650,171Variance of Actual to 5 YEAR AVERAGE 264,894 (1,522,329) (1,858,060) (2,184,879) (3,554,720) (3,962,464) (5,024,911) (5,260,210) (5,961,236) (6,721,376) (9,081,617) (7,630,425)

FY 2014 Performance Level Matrix Results 103.23% 91.36% 93.18% 94.06% 92.29% 92.87% 92.31% 92.86% 92.88% 92.80% 91.23% 93.38%


FY15 Budget comparative on 5 YEAR AVERAGE 8,299,641 17,559,846 27,299,114 36,831,210 46,177,221 55,503,893 65,407,366 73,816,875 84,017,635 93,606,126 103,535,674 115,975,014FY15 YTD Total 6,671,498 14,866,211 23,553,895 31,636,191 40,321,276 50,333,536 58,353,348 0 0 0 0 0Variance of Actual to 5 YEAR AVERAGE (1,628,143) (2,693,635) (3,745,219) (5,195,020) (5,855,945) (5,170,357) (7,054,018) 0 0 0 0 0


Results: 2013 92.42% Exceptionally Achieves 2014 93.38% Commendably Achieves

Performance Matrix Performance Matrix Results FY14 FY15 Budget Actual Percentage 5 Yr Average

Exceptionally Achieves < 92.5% < 92.5% FY10 103,944,700 100,353,399 96.54% 95.38%Commendably Achieves 92.6% - 95% 92.6% - 95% FY11 107,606,600 106,782,666 99.23%

Fully Achieves 95.1% - 100% 95.1% - 100% FY12 111,795,300 106,587,246 95.34%Minimally Achieves 100.1% - 104.9% 100.1% - 104.9% FY13 117,433,000 108,535,303 92.42%

Fails to Achieve > 105% > 105% FY14 115,280,596 107,650,171 93.38%

ASSUMPTIONS: Matrix results assume a typical weather year and no extraordinary events exceeding contingency reserve.

PERFORMANCE MATRIX - OPERATING EXPENSEFY 2015

ACTUALS

"Manage the operating units of MSD within the FY2015 budget, delivering reliable and responsive services to customers."

29


Year to Date Totals Capital Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

FY10 YTD Total 135,617,250 5,107,355 8,980,895 13,418,407 17,945,904 23,761,371 27,787,028 33,911,981 81,147,742 87,391,692 91,850,194 97,984,785 116,178,847FY11 YTD Total 163,822,500 1,262,958 16,276,036 24,056,876 34,447,381 43,008,365 54,167,734 68,556,733 79,586,957 93,448,740 103,934,678 114,823,264 138,311,288FY12 YTD Total 156,193,500 12,013,202 10,264,823 19,837,145 30,303,709 38,307,940 47,269,999 57,000,249 65,618,465 70,335,835 78,096,420 85,409,667 102,508,269FY13 YTD Total 150,661,500 6,689,211 6,471,367 10,658,314 22,862,055 30,238,249 38,543,925 45,964,426 53,351,679 58,217,541 63,726,904 70,740,663 90,283,467FY14 YTD Total 108,669,797 9,048,107 8,106,866 14,158,444 24,827,164 30,545,485 37,501,927 46,587,639 53,259,836 58,635,402 63,367,536 72,427,292 85,978,375FY15 YTD Total 117,859,314 5,346,882 12,716,942 11,632,363 23,038,258 29,921,263 38,987,761 46,300,430 0 0 0 0 0

FY10 Actual Monthly Spending 5,107,355 3,873,540 4,437,512 4,527,497 5,815,467 4,025,657 6,124,953 47,235,761 6,243,950 4,458,502 6,134,591 18,194,062 FY11 Actual Monthly Spending 1,262,958 15,013,078 7,780,840 10,390,505 8,560,984 11,159,369 14,388,999 11,030,224 13,861,783 10,485,938 10,888,586 23,488,024 FY12 Actual Monthly Spending 12,013,202 (1,748,379) 9,572,322 10,466,564 8,004,231 8,962,059 9,730,250 8,618,216 4,717,370 7,760,585 7,313,247 17,098,602 FY13 Actual Monthly Spending 6,689,211 (217,844) 4,186,947 12,203,741 7,376,194 8,305,676 7,420,501 7,387,253 4,865,862 5,509,363 7,013,759 19,542,804 FY14 Actual Monthly Spending 9,048,107 (941,241) 6,051,578 10,668,720 5,718,321 6,956,442 9,085,713 6,672,197 5,375,566 4,732,134 9,059,756 13,551,083

FY10 Actual Monthly Spending as % of Total 4.40% 3.33% 3.82% 3.90% 5.01% 3.47% 5.27% 40.66% 5.37% 3.84% 5.28% 15.66% FY11 Actual Monthly Spending as % of Total 0.91% 10.85% 5.63% 7.51% 6.19% 8.07% 10.40% 7.97% 10.02% 7.58% 7.87% 16.98% FY12 Actual Monthly Spending as % of Total 11.72% -1.71% 9.34% 10.21% 7.81% 8.74% 9.49% 8.41% 4.60% 7.57% 7.13% 16.68% FY13 Actual Monthly Spending as % of Total 7.41% -0.24% 4.64% 13.52% 8.17% 9.20% 8.22% 8.18% 5.39% 6.10% 7.77% 21.65% FY14 Actual Monthly Spending as % of Total 10.52% -1.09% 7.04% 12.41% 6.65% 8.09% 10.57% 7.76% 6.25% 5.50% 10.54% 15.76%

5 YEAR AVERAGE by Month 6.99% 2.23% 6.09% 9.51% 6.76% 7.51% 8.79% 14.60% 6.33% 6.12% 7.72% 17.35%YTD 6.99% 9.22% 15.31% 24.82% 31.59% 39.10% 47.89% 62.49% 68.82% 74.94% 82.65% 100.00%


FY14 Budget comparative on 5 YEAR AVERAGE 6,396,006 9,141,946 16,705,702 26,276,947 33,884,840 42,520,757 50,965,782 66,683,990 73,488,102 80,989,612 88,480,947 108,669,797FY14 YTD Total 9,048,107 8,106,866 14,158,444 24,827,164 30,545,485 37,501,927 46,587,639 53,259,836 58,635,402 63,367,536 72,427,292 85,978,375Variance of Actual to 5 YEAR AVERAGE 2,652,100 (1,035,080) (2,547,258) (1,449,783) (3,339,355) (5,018,830) (4,378,142) (13,424,155) (14,852,700) (17,622,076) (16,053,655) (22,691,422)



FY15 Budget comparative on 5 YEAR AVERAGE 8,241,033 10,868,600 18,048,423 29,255,811 37,228,890 46,084,036 56,444,827 73,648,201 81,106,410 88,318,428 97,415,509 117,859,314FY15 YTD Total 5,346,882 12,716,942 11,632,363 23,038,258 29,921,263 38,987,761 46,300,430 0 0 0 0 0Variance of Actual to 5 YEAR AVERAGE (2,894,151) 1,848,342 (6,416,060) (6,217,553) (7,307,627) (7,096,275) (10,144,397) 0 0 0 0 0


Results: 2013 59.92% Minimally Achieves 2014 79.12% Fully Achieves

Performance Matrix Performance Matrix Results FY14 FY15 Budget * Actual * Percentage Average

Exceptionally Achieves >92.5% >92.5% FY10 135,617,250 116,178,847 85.67% 74.95% Old New 2014Commendably Achieves 85% - 92.4% 85% - 92.4% FY11 163,822,500 138,311,288 84.43% Capital Plan 200,882 200,882 108,670

Fully Achieves 75% - 84.9% 75% - 84.9% FY12 156,193,500 102,508,269 65.63% Force Acct - (50,221) -Minimally Achieves 65.1% - 74.9% 65.1% - 74.9% FY13 150,661,500 90,283,467 59.92% Financial Adj (40,176) - -

Fails to Achieve <65% <65% FY14 108,669,797 85,978,375 79.12% Budget Amnt 160,706 150,661 108,670

* Does not include Force Account.

PERFORMANCE MATRIX - CAPITAL EXPENSEFY 2015

ACTUALS

"Effectively manage the FY2015 Capital Program to assure projects are completed on time and within budget."

2013RECONCILIATION

30

Treatment Plant 2008 2009 2010 2011 2012 2013 2014 July August Sept. October November December January February March April May June

Bancroft 0 1 0 0 0 0 0 0 0 0 0 0 0 0 *2015Berrytown 0 0 0 0 1 0 1 0 0 0 0 0 0 0 *2015Cedar Creek 4 0 0 0 0 0 0 0 0 0 0 0 0 0Chenoweth Hills 1 1 0 0 0 0 7 0 1 1 *2014Derek R.Guthrie 1 2 0 0 0 0 0 0 0 0 0 0 0 0Floyds Fork 4 2 0 1 0 0 0 0 0 0 0 0 0 0Glenview Bluff 0 0 6 0 0 0 0 q q 0 q q 0 *2015Hite Creek 0 2 0 4 0 0 0 0 0 0 0 0 0 0Hunting Creek North 1 0 2 0 0 3 0 0 0 0 0 0 0 0 *2015Hunting Creek South 3 2 10 5 3 4 0 0 0 0 0 0 0 0 *2015J-Town 13 1 0 0 0 1 1 0 0 0 0 0 0 0 *2015Ken Carla 1 1 0 0 0 1 0 0 0 0 0 0 0 0 *2015Lake Forest 2 1 0 0 0 0 0 *2013Lake of the Woods 4 0 0 2 0 1 0 *2013McNeely Lake 0 1 0 0 1 3 2 0 0 0 0 0 0 0 *2015Morris Forman 0 0 3 2 0 0 0 0 0 0 0 3 0 0Shadow Wood 1 0 5 8 0 3 0 0 0 0 0 0 0 0 *2015Silver Heights 1 0 0 2 1 2 2 *2014Starview Estates 1 0 0 0 0 0 0 0 0 0 0 0 0 0 *2015Timberlake 5 2 0 2 0 4 0 0 0 0 0 0 0 0 *2015

Total Violations 42 16 26 26 6 22 13 0 1 1 1 4 4 4

Violation Months 30 15 9 15 4 12 8 0 1 1 1 2 2 2

Violation Free Months (a) 87.50% 93.75% 96.25% 93.75% 98.33% 95.00% 96.30% 100.00% 97.06% 98.04% 98.51% 97.59% 97.98% 98.25%(a) each month per treatment plant without one or more NOVs

Results: 2013 95.00% Commendable Achieves2014 96.30% Commendable Achieves

August - Weekly e ColiExceptional Achieves > 97% > 97% > 97% Nov. - 7-day & monthly TSS, monthly BODCommendable Achieves 95% to 96.9% 95% to 96.9% 95% to 96.9%Fully Achieves 92.10% to 94.9% 92.10% to 94.9% 92.10% to 94.9%Minimal Achieves 89.10% to 92.0% 89.10% to 92.0% 89.10% to 92.0%Fails to Achieve < 89% < 89% < 89%

q reports quarterly* year taken out of service Regional Treatment Plants

FY 2013 FY 2014 FY 2015

Performance Matrix - RegulatoryNotice to EPA

"Effectively operate wastewater plants to assure compliance with water quality regulations and improve the quality of area waterways."

Violation Cause:

Violations FY 2015 Violations

Performance Goals

31

Performance Matrix - SafetyOSHA Recordable Injuries

Lost Time due to InjuryPreventable Vehicular Accidents

FY 2015

"Develop a comprehensive Safety and Health program plan and provide a safe work environment for employees and the community."


OSHA Recordable Injuries

Cumulative Number 3 3 4 9 14 17 20

Annualized 36 18 16 27 34 34 34 0 0 0 0 0

Percentage 90% 45% 40% 68% 84% 85% 86% 0% 0% 0% 0% 0%

Lost Time due to Injury


Annualized 36 18 16 18 24 24 22 0 0 0 0 0

Percentage 144% 72% 64% 72% 96% 96% 89% 0% 0% 0% 0% 0%

Preventable Accidents


Annualized 0 42 48 51 55 56 53 0 0 0 0 0

Percentage 0% 60% 69% 73% 79% 80% 76% 0% 0% 0% 0% 0%

Weighted Average 81% 56% 53% 70% 86% 87% 84% 0% 0% 0% 0% 0%

OSHA Lost Preventable Results: 2013 122% Minimal AchievesActual Rec. Inj. Time Accidents 2014 86% Commendable Achieves

2011 55 21 832012 60 21 872013 44 28 602014 38 30 46

Average 49 25 69Exceptional Achieves < 79% < 80% < 80%

Weight 50% 25% 25% Commendable Achieves 79.1% to 87% 80.1% to 89% 80.1% to 90%Fully Achieves 86.9% to 119.9% 89.1% to 100.0% 90.1% to 100%Minimal Achieves 120% to 141.9% 100.1% to 120.9% 100.1% to 119.9%

Exceptional < 32 80% < 20 80% < 56 80% Fails to Achieve > 142% > 121% > 120%Commendable < 36 90% < 22.5 90% < 63 90% * Included Lost Time @ 70% and Preventable Accidents @ 30%Fully = 40 100% = 25 100% = 70 100%Minimal > 44 110% > 27.5 110% > 77 110%Fails > 48 120% > 30 120% > 84 120%

FY 2013* FY 2014 FY 2015

Weighted Average Performance Goals

32

Data supplied by: Joy Walker9/17/14

Performance Matrix - DiversityMBE/WBE Expenditures

FY 2015

Goals 2013 2014 July August September October November December January February March April May JuneMBE

Construction 15.00% 16.42% 18.77% 9.98% 7.79% 7.15% 8.30% 9.24% 10.75% 9.97%

Professional Services 15.00% 10.37% 13.69% 16.90% 14.60% 12.07% 13.68% 13.10% 13.35% 12.57%

Purchases 5.00% 9.30% 7.10% 5.60% 5.60% 5.58% 5.41% 5.24% 5.64% 5.45%

WBEConstruction 6.00% 7.67% 9.14% 7.06% 7.25% 6.65% 6.55% 6.00% 6.23% 6.27%

Professional Services 6.00% 9.77% 8.46% 13.14% 9.72% 9.58% 9.61% 9.92% 9.80% 9.61%

Purchases 3.00% 6.31% 5.95% 2.64% 3.13% 6.94% 7.55% 6.78% 5.78% 5.26%

Weighted Average* 10.33% 11.74% 13.17% 9.30% 7.99% 7.55% 8.19% 8.33% 9.00% 8.55% 0.00% 0.00% 0.00% 0.00% 0.00%

Percent of Weighted Average Goal 90.02% 77.31% 73.11% 79.25% 80.65% 87.09% 82.75% 0.00% 0.00% 0.00% 0.00% 0.00%

Dollar Weighting* Results: 2013 113.68% Commendable AchievesMBE WBE Totals 2014 127.52% Exceptional Achieves

Construction 42% 28% 69%Professional Services 10% 8% 17%Purchases 7% 7% 13%

Totals 58% 42% 100%Exceptional Achieves > 125% > 125%Commendable Achieve 110% to 124.9% 115% to 124.9%Fully Achieves 90.10% to 109.9% 95.1% to 114.9%Minimal Achieves 80.10% to 90.0% 85.10% to 95.0%Fails to Achieve < 80% < 85%

FY 2015 Expenditures

Performance Goals

FY 2014 FY 2015

Actual

33

$53,323.51

$54,847.11

$62,807.23

$54,587.11

$49,478.76

$59,988.97

$67,255.37

$61,616.06

$65,573.21

$33,366.86

$43,988.90

$37,231.59

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

P-CARD TOTAL SPEND DATE RANGE: FEBRUARY 28, 2014 TO JANUARY 31, 2015

P-cards issued= 122 P-card By Division Total violation = 16 - Executive Office= 2 Operations Information Technology Division - Sales Tax = 1 - Legal=3 - Administration = 1 - Information Technology= 7 - Split charges = 0 - Human Resources=4 - Collections Systems = 16 - Lack of Receipts = 0 - Finance=7 - Drainage & Flood Protection = 10 - Personal expense = 0 - Treatment Facilities (Maintenance) = 12 - Late receipt = 15 Engineering Division - Collections System (Sanitary) = 6 - Unauthorized purchase = 0 - Regulaory & GIS = 2 - Support Services = 15 - Prepay = 0 - Development = 5 - Treatment Facilities = 17

- Design & Construction=10 - Performance = 5 Created by: Kevin Schmidt 2/6/15

34

MBE

WBE

All Others

Total Expense

12.57%

9.61%

77.82%

$11,926,755.00

9.97%

6.27%

83.76%

$34,748,368.00

5.45%

5.26%

89.29%

$13,114,673.00

MBE/ WBE Expenditure Report YTD July 1, 2014 - January 31, 2015

Goods & Services

Construction Services

Professional Services

CHART CREATED BY: K.SCHMIDT 2.9.15

35

TOTAL SPEND BY CONTRACT EFFECTIVE AND EXPIRATION DATE

CONTRACT DATE RANGE7/1/2014 - 06/30/2015

7/1/2014 - 3/31/2015

11/1/2014 - 6/30/2015

1/1/2015-12/31/2015

06/23/2014 - 06/30/2015

7/1/2014 - 6/30/2015 7/1/2014 - 6/30/2015

7/1/2014 - 6/30/2015

8/1/2014 - 7/31/2015

3/1/2014 - 2/28/2015

PURCHASE ORDER VALUE 1,683,330.42$ $ 1,369,134.00 975,234.00$ 937,500.00$ 894,440.00$ $ 773,004.69 695,000.00$ $ 674,529.00 $ 550,000.00 527,002.00$

Contract Title / Company Name

*Polymer Emulsion /Mannich

(Polydyne, Inc.)Wex, Inc.

(FleetOne)

Removal, Hauling & Dumping of

Biosolids (C&J Waste Mgmt Inc)

Collection Systems Tele-Inspection &

Cleaning (Robinson Pipe

Cln)

FY15 Consulting Services

(TekSystems, Inc.)

Sodium Hypochlorite (Chemical

Resources)

Districtwide Svc- Mechanical Svc (Merrick Co.)

Commercial Vacuum &

Waterblasting (C&J Waste

Mgmt)

Chemical Root Control (Dukes

Root Crl)

Ultility Locating Services (USIC

Locating Service)

TOTAL SPEND BY CONTRACT EFFECTIVE AND EXPIRATION DATE 972,897.44$ 953,287.02$ 373,679.65$ -$ 696,631.79$ 413,644.21$ 223,813.24$ 125,143.44$ 226,680.75$ 421,046.95$ % SPEND 57.8% 69.6% 38.3% 0.0% 77.9% 53.5% 32.2% 18.6% 41.2% 79.9%TOTAL SPEND BY FISCAL YEAR 2015EFFECTIVE JULY 1, 2014 972,897.44$ 953,287.02$ 373,679.65$ -$ 696,631.79$ 413,644.21$ 223,813.24$ 125,143.44$ 226,680.75$ 421,046.95$

REVIEW PERIOD: CONTRACT EFFECTIVE DATE THROUGH 1/31/2015TWELVE MONTH TOTAL SPEND BY PURCHASE ORDERPURCHASING TOP 10 GOODS & SERVICES CONTRACTS

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

Polymer Emulsion /Mannich

FleetOne Removal, Hauling & Dumping of

Biosolids

Collection Systems Tele-Inspection &

Cleaning

FY15 IT Consulting Services

Sodium Hypochlorite

Districtwide Svc- Mechanical Svc

Commercial Vacuum &Waterblasting

Chemical Root Control

Utility Locating Services

CONTRACT VALUE TOTAL SPEND SPEND BY FY15

Chart Created by: KEVIN SCHMIDT 2/9/2015

36

BOARD APPROVALS FOR OPERATING AND CAPITAL EXPENDITURES


BOARD MEETING ACTIONS 1 - 26 - 15DESCRIPTION DEPARTMENT ACCOUNT OPERATING CAPITAL

HDR Engineering / Nightingale Pump Station & CSO Storage Basin H09140 - Eng Design / Construction 56216 - Construction $286,747Smith Contractors / Hite Creek WQTC Interim Hydraulic Improvements H14125 - Eng Design / Construction 56216 - Construction $8,602,000TSI Paving / Jtown Interceptor Project & WQTC Decommissioning H07293 - Eng Design / Construction 56216 - Construction $4,137,852Pace Contracting / Muddy Fork Interceptor A13179 - Eng Design / Construction 56216 - Construction $6,567,000

JANUARY TOTALS $0 $19,593,599

Y-T-D TOTALS $5,316,592 $123,137,966


Operating 524,000 0 4,036,001 334,790 0 421,801 0 0 0 0 0 0 5,316,592 4%Capital 29,727,349 7,848,025 13,500,248 6,486,602 5,971,443 40,010,700 19,593,599 0 0 0 0 0 123,137,966 96%

Total 30,251,349 7,848,025 17,536,249 6,821,392 5,971,443 40,432,501 19,593,599 0 0 0 0 0 128,454,558 100%

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

Operating

Capital

FY 2015 - Monthly Approvals

37




Operating 2,302,983 550,000 4,551,800 2,980,411 432,070 165,481 138,900 2,012,553 0 5,962,221 990,473 3,937,929 24,024,821 16%Capital 2,113,288 13,943,361 18,736,868 9,631,679 7,536,570 6,546,055 5,581,419 3,163,120 2,201,305 38,532,000 13,480,504 2,076,865 123,543,034 84%

Total 4,416,271 14,493,361 23,288,668 12,612,090 7,968,640 6,711,536 5,720,319 5,175,673 2,201,305 44,494,221 14,470,977 6,014,794 147,567,855 100%


Operating 8,401,404 0 629,646 125,000 1,840,075 113,750 355,563 2,603,498 420,014 5,956,454 563,258 2,051,234 23,059,896 25%Capital 3,080,181 8,787,007 10,081,966 9,317,696 19,300,516 8,300,000 384,492 2,661,294 3,266,098 3,556,384 1,235,534 886,861 70,858,029 75%

Total 11,481,585 8,787,007 10,711,612 9,442,696 21,140,591 8,413,750 740,055 5,264,792 3,686,112 9,512,838 1,798,792 2,938,095 93,917,925 100%

-4,000,000

1,000,000

6,000,000

11,000,000

16,000,000

21,000,000


Operating

Capital


0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000


Operating

Capital


38




Operating 524,000 524,000 4,560,001 4,894,791 4,894,791 5,316,592 5,316,592 0 0 0 0 0 5,316,592 4%Capital 29,727,349 37,575,374 51,075,622 57,562,224 63,533,667 103,544,367 123,137,966 0 0 0 0 0 123,137,966 96%

Total 30,251,349 38,099,374 55,635,623 62,457,015 68,428,458 108,860,959 128,454,558 0 0 0 0 0 128,454,558 100%


Operating 2,302,983 2,852,983 7,404,783 10,385,194 10,817,264 10,982,745 11,121,645 13,134,198 13,134,198 19,096,419 20,086,892 24,024,821 24,024,821 16%Capital 2,113,288 16,056,649 34,793,517 44,425,196 51,961,766 58,507,821 64,089,240 67,252,360 69,453,665 107,985,665 121,466,169 123,543,034 123,543,034 84%

Total 4,416,271 18,909,632 42,198,300 54,810,390 62,779,030 69,490,566 75,210,885 80,386,558 82,587,863 127,082,084 141,553,061 147,567,855 147,567,855 100%


Operating 8,401,404 8,401,404 9,031,050 9,156,050 10,996,125 11,109,875 11,465,438 14,068,936 14,488,950 20,445,404 21,008,662 23,059,896 23,059,896 25%Capital 3,080,181 11,867,188 21,949,154 31,266,850 50,567,366 58,867,366 59,251,858 61,913,152 65,179,250 68,735,634 69,971,168 70,858,029 70,858,029 75%

Total 11,481,585 20,268,592 30,980,204 40,422,900 61,563,491 69,977,241 70,717,296 75,982,088 79,668,200 89,181,038 90,979,830 93,917,925 93,917,925 100%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000


FY13 Operating

FY14 Operating

FY15 Operating

FY13 Capital

FY14 Capital

FY15 Capital

FY13 Operating

FY14 Operating

FY13 Capital

FY14 Capital

Fiscal Year Comparison - YTD Approvals

39

MSDM e t r o p o l i t a n S e w e r D i s t r i c t

A publication of MSD Finance Department700 West Liberty Street

Louisville, KY 40203-1911

LouisvilleMSD.org

24/7 Customer Relations502-587-0603

Achieving Clean, Safe Waterwaysfor a Healthy and Vibrant Community

january 2015 financial report - msd

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