Feasibility Report Series 2024 Bonds
St. Lucie West Services District July 8, 2024

Scenario – Bond Projects

Cost of Expansion

Key Assumptions

Description	Estimated Cost	
Design Engineering	$1,910,000	
Construction Cost	33,628,000	
Construction Engineering		1,357,500	
Total Cost of Expansion	$36,895,500	

Estimates Provided By District’s Consulting Engineer - June 2024
Construction Schedule = FY-2025 – FY-2026
Portion of Design Engineering Funded From Connection Fees
Remaining Funding From Proposed Series 2024 Bonds

Forecast Assumptions

Key Assumptions
Proposed Trust Indenture
Modified “Debt Service Coverage” Test
Modified R&R Minimum Funding Requirement
Modified Definition of Gross Revenues
FY-2024 YTD Growth Estimates (May ERCs / Sales)
Reserve CDD Assumed to Extend Existing Agreement (No Disconnection in 2029)
FY-2025 Proposed Operating Budget
Current WTP Expansion Project Cost Estimate
Bond Estimate (Provided By Financial Advisor [MBS]) (April 2024)
Proposal for 20-Year Repayment Schedule
Refinancing of Existing Bonds
Provides Funding for Capital Projects

Trust Indenture Requirements

Key Requirements
Revised Debt Service Coverage Calculation
Single Test (Previously 2 Part Test) – Removed Redundant Provisions
Net Revenues = 110% of Annual Debt Service + Required Transfers (R&R, Reserve Account, Conn. Fee Repayments)
Modified R&R Funding Calculation (Excluded Connection Fee Revenues)
Inclusion of AFPI Revenues in Gross Revenues
Test Prepared For Historical Period (FY2019-FY2023) & Forecast Period (FY2024-FY2029)

Historical Debt Service Coverage

Description	2019	2020	2021	2022	2023	
Gross Revenues	$9,287,214	$9,720,659	$9,726,356	$9,898,996	$10,926,278	
Less: Operating Expenses	($5,029,030)	($5,119,016)	($5,268,735)	($5,490,203)	($6,322,738)	
Net Revenues	$4,258,184	$4,601,643	$4,457,621	$4,408,793	$4,603,540	
						
Annual Debt Service	$2,600,454	$2,605,326	$2,597,445	$2,588,049	$2,582,146	
Debt Coverage Allowance	260,045	260,533	259,745	258,805	258,215	
Required Transfers (R&R)	464,098	477,261	483,435	492,179	537,817	
Requirement – Trust Indenture	$3,324,597	$3,343,120	$3,340,625	$3,339,033	$3,378,178	
						
Calculated Ratio	128.08%	137.65%	133.44%	132.04%	136.27%	
Required Ratio	100.00%	100.00%	100.00%	100.00%	100.00%	

Recommended Rate Adjustments

Fiscal Year	
Price Index	
Additional	Total Rate Adjustment	
2025	2.5%	6.5%	9.0%	
2026	2.5%	6.5%	9.0%	
2027	2.2%	1.3%	3.5%	
2028	2.2%	1.3%	3.5%	
2029	2.2%	1.3%	3.5%	
Cumulative	12.1%	17.9%	31.7%	
Current Recommendation Includes Fiscal Year 2029 (Previous Scenarios Ended with FY2028)
Potential To Reduce Future Rate Adjustments From Reserve CDD Negotiations, Additional Growth, & Reduced Expenses After WTP Upgrades

Projected Debt Service Coverage

Description	2024	2025	2026	2027	2028	2029	
Gross Revenues	$12,131,354	$13,242,311	$16,405,568	$14,570,822	$15,099,913	$15,655,156	
Less: Operating Expenses	($7,514,991)	($8,024,839)	($8,248,579)	($8,470,980)	($8,736,562)	($8,940,950)	
							
Net Revenues	$4,616,363	$5,217,471	$8,156,989	$6,099,842	$6,363,352	$6,714,207	
							
Annual Debt Service	$2,574,555	$2,552,786	$4,607,005	$4,608,180	$4,610,530	$4,609,530	
Debt Coverage Allowance	257,456	255,279	460,701	460,818	461,053	460,953	
Required Transfers (R&R)	537,817	551,704	611,356	718,758	726,954		753,241	
								
Requirement – Trust Indenture	$3,369,828	$3,359,768	$5,679,062	$5,787,756	$5,798,537	$5,823,724	
							
Calculated Ratio	136.99%	155.29%	143.63%	105.39%	109.74%	115.29%	
Required Ratio	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	

Future Goals To Improve Debt Coverage

Areas of Focus
Continue Reserve CDD Negotiations
Resiliency Projects Included in Bonds without Reserve CDD Revenue Funding
Continue Monitoring Growth
Forecast Based on Known Capacity Requests / Limited Future Growth
Monitor Operating Expense Reductions Post Project Completion
No Reductions Assumed in Forecast
Monitor WTP and Resiliency Project Costs
Potential Savings (e.g., Design Estimate vs. Actual Bids)

Rate Comparison – Residential Service

Thank you!
Ryper Water Analytics Ryan Smith Ryan@Ryperwater.com
(407) 537-9878