The URL can be used to link to this page

Special Program Bonds Series 2016 NEW ISSUE Rating: S&P Global Ratings A+ Book-Entry-Only In the opinion of Barnes & Thornburg LLP, Indianapolis, Indiana (Bond Counsel), under existing laws, interest on the Series 2016 Bonds is excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended and in effect on the date of issuance of the Series 2016 Bonds (the Code). In the opinion of Bond Counsel, under existing laws, interest on the Series 2016 Bonds is exempt from income taxation in the State of $53,735,000 THE CITY OF CARMEL LOCAL PUBLIC IMPROVEMENT BOND BANK Carmel, Indiana SPECIAL PROGRAM BONDS, SERIES 2016 (Waterworks Revenue Bonds) Original Date: Date of Delivery (November 10, 2016)Due: June 1, as shown on inside cover page The City of Carmel Local Public Improvement Bond Bank (the Bond Bank) is issuing $53,735,000 of its Special Program Bonds, Series 2016 (Waterworks Revenue Bonds) (the Series 2016 Bonds) for the purpose of providing funds to (a) purchase Requirement of the Bond Bank Reserve Account, and (c) pay the costs of issuance of the Series 2016 Bonds, together with certain together with certain related expenses, all as more fully described herein. The Series 2016 Bonds are authorized by a resolution adopted by the Board of Directors of The City of Carmel Local Public Improvement Bond Bank on September 15, 2016, and are issued under and secured by the Trust Indenture dated as of November 1, 2016 (the Indenture) between the Bond Bank and The Huntington National Bank, in Indianapolis, Indiana, as trustee, registrar and paying agent (the Trustee) all in accordance with the laws of the State of Indiana, particularly Indiana The Series 2016 Bonds are limited obligations of the Bond Bank payable solely out of the revenues and funds established and pledged therefor under the Indenture, as more fully described herein, which includes the revenues and funds received from the credit or pledge of the faith and credit of the State of Indiana (the State) or any political subdivision thereof, including the are more fully described herein. The Bond Bank has no taxing power. Bonds when due. The Series 2016 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity. See SERIES 2016 BONDSTerms of Redemption herein. The Series 2016 Bonds will be issued only as fully registered bonds, and when issued, will be registered in the name of interests in the Series 2016 Bonds. Interest on the Series 2016 Bonds will accrue at the rates per annum set forth on the inside cover and will be payable semiannually on June 1 and December 1 of each year, beginning June 1, 2017. See SERIES 2016 BONDS. Principal and interest will be disbursed on behalf of the Bond Bank by the Trustee. Interest on the Series 2016 Bonds will be paid by check, mailed one business day prior to the interest payment date or by wire transfer to depositories. The principal of and premium, if any, on the Series 2016 Bonds shall be payable in lawful money of the United States of America at the designated Participants. See BOOK-ENTRY-ONLY SYSTEM. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must Limited Obligations The Qualified Obligations Authorization and Purpose QE Debt Service Reserve Account Bond Bank Reserve Account Bond Bank Reserve Account City Appropriation. City Appropriation Optional Redemption. Mandatory Sinking Fund Redemption. Notice of Redemption. Discontinuation of Book-Entry System General. Authorization and Purpose. Security and Sources of Payment of Qualified Obligations. QE Debt Service Reserve Account. Bond Bank Reserve Account. City Appropriation. (Waterworks Revenue Bonds) Money Magazine Limited Obligations. Sources of Payment for the Qualified Obligations. City Appropriation Limited Remedies. Adverse Legislative Action. \[Remainder of page intentionally left blank\] /s/ Christine S. Pauley The City of Carmel (the City) operates a municipal water utility, the Carmel Municipal Water Utility (the Utility), providing services to over 29,000 users. The utility began operations in 1929 with a single well. Over the years, expansions have been made so that today the system has twenty-two (22) wells. The Utility operates and maintains four (4) treatment plants. The first treatment plant was built in 1964 and expanded in 1965 to approximately 1.0 million gallons per day (MGD). A second plant was built in 1971 and expanded to approximately 3.0 MGD in 1975 and a third 2.0 MGD plant was purchased from Indianapolis Water Company, Inc. in 1981. A fourth plant was constructed in 1995. In 2012, the Utility replaced the first treatment plant which expanded the capacity to 14 MGD. The system can currently produce approximately 34 MGD and distributes water through approximately 600 miles of water main. Water treatment includes iron removal, softening, disinfection and fluoridation. The City purchased a portion of the Hamilton Western Utilities in April 2002. The purchase included 2,300 additional customers and the potential for an estimated 4,000 new customers as the area develops. On June 30, 2006, the City finalized its agreement to purchase certain assets, including customers, with the Indianapolis Waterworks Department. The purchase included approximately 9,300 customers and the potential for an estimated 11,000 new customers as the area develops. The Common Council acts as the legislative body of the City and passes the ordinances and resolutions. The management of the Utility is under the direction of the three-member Board of Public Works. The Utilitys manager oversees the day-to-day operations of the system, including water treatment, distribution, billing and collections as well as administration. Based upon information provided by the Utilitys personnel, the number of water utility customers is reported as follows. Number ofPercent YearConnectionsGrowth 2015 29,0861.11% 2014 28,7680.17% 2013 28,7182.33% 201228,0641.56% 201127,6340.94% Source: Carmel Utilities A-1 According to the utility records, the following is a list of the ten (10) largest users of the Water Utility as of June 30, 2016. Usage NameType of Business(Gallons)Revenue Carmel Clay SchoolsEducation8,612$78,441 Mohawk HillsApartments11,84850,251 Clarian NorthHealthcare9,25540,150 McKinleyApartments6,05231,725 Simon Property GroupReal Estate8,71730,134 St. VincentHealthcare5,34937,393 Providence - Old MeridianApartments6,32722,911 Crew Car WashCar Wash7,04819,311 Woodland SpringsApartments4,57917,829 RiverviewAssisted Living6,156 16,645 Total73,943$344,790 Source: Carmel Utilities The following is a summary of the outstanding revenue debt of the Utility as of August 30, 2016. OriginalAmount DescriptionAmountOutstanding Junior Waterworks Revenue Bonds of 2008 Current Interest Bonds (1) $63,770,000$54,165,000 Capital Appreciation Bonds (2) 20,547,74076,240,000 Junior Waterworks Revenue Bonds of 201221,625,00018,665,000 Total$105,942,740$149,070,000 (1) Upon issuance of the proposed financing, the Junior Waterworks Revenue Bonds of 2008 (Current Interest Bonds) will be net of call right waiver credits. See Consultants Report, Schedule E-1. (2) The Amount Outstanding for the Junior Waterworks Revenue Bonds of 2008 (Capital Appreciation Bonds) is the accreted value. A-2 The tabulation below sets forth the combined annual debt service requirements for all outstanding indebtedness of the Utility. (1) Year2008 2012Total 2016$3,807,778$1,475,150$5,282,928 20174,091,4561,468,2505,559,706 20184,390,4561,473,3505,863,806 20194,695,7061,468,0506,163,756 20204,995,9561,469,8006,465,756 20215,344,1691,469,8006,813,969 20225,699,4441,470,2007,169,644 20237,124,3191,471,4008,595,719 20247,523,6251,336,2008,859,825 20259,386,0001,335,00010,721,000 20269,818,5001,337,60011,156,100 202710,274,2501,338,80011,613,050 (2) 202811,365,0001,338,60012,703,600 (2) 202911,870,0001,337,00013,207,000 (2) 203012,395,0001,339,00013,734,000 (2) 203112,950,0001,334,40014,284,400 (2) 203213,530,0011,338,40014,868,401 (2) 203314,130,0001,335,60015,465,600 203401,337,8751,337,875 203501,337,7001,337,700 203601,335,0751,335,075 Totals$153,391,660$29,147,250$182,538,910 (1) Maturities May 1, 2017 through and including May 1, 2028 are net of call rights waiver credits. See Consultants Report, Schedule E-1. (2) Capital Appreciation Bonds. Note: Principal payments are due annually each May 1 with semi-annual interest payments due each May 1 and November 1. A-3 The Indianapolis Star Plan Description: Funding Policy: Annual Pension Cost: Plan Description: Funding Policy On Behalf Payments: Plan Description Funding Policy On Behalf Payments Plan Description Funding Policy Annual Pension Cost: Current reports are available at http://www.in.gov/sboa/resources/reports/audit/. Current reports are available at http://www.in.gov/sboa/resources/reports/audit/. Current reports are available at http://www.in.gov/sboa/resources/reports/audit/. Current reports are available at http://www.in.gov/sboa/resources/reports/audit/. https://gateway.ifionline.org/report_builder/ /s/ James Brainard /s/ Christine S. Pauley Carmel, Indiana Table of Contents Transmittal Letter EXHIBIT A Balance Sheets as of December 31, 2015, 2014, 2013 and 2012 EXHIBIT B Statement of Income for the 12 months ended December 31, 2015, 2014, 2013 and 2012 EXHIBIT CAnnual Cash Revenue Requirements for Debt Coverage SCHEDULE CRevenue Requirement Calculations EXHIBIT DPro Forma Net Operating Revenues and Expenses Statement SCHEDULE D Test Year Adjustments Summary Debt Amortization Schedule EXHIBIT E SCHEDULE E-1Waterworks Revenue Bonds of 2008, Series B SCHEDULE E-2Junior Waterworks Revenue Bonds of 2012 SCHEDULE E-3Annual Debt Coverage Calculations EXHIBIT FOperational Analysis - Rate Increase first billed in May 2016 (Year 1 Beginning) EXHIBIT GMonthly Base Charges and Monthly Consumption Rates for Residential, Commercial and Fire Protection CITY OF CARMEL MUNICIPAL WATER UTILITY Carmel, Indiana TRANSMITTAL LETTER London Witte Group, LLC (LWG) has prepared this Consultants Report (Report) which uses the operating reports, financial reports and other data pertaining to and provided by the Carmel Municipal Water Utility (the Utility). The purpose of this Report is to demonstrate the Utilitys financial capability to meet its on-going revenue requirements for operation and maintenance expenses, current and proposed debt service payments, and to make capital improvements and/or additions to the Utilitys system. The Report includes the historical data taken from the books and records of the Utility (Exhibits A and B) for the twelve months ended December 31, 2015 (the Test Year). The Utility Director provided information in order to adjust actual revenues to a normal Test Year for: (i) consumption; (ii) to incorporate the expected increase in revenues resulting from the rate increase adopted by the Carmel City Council on January 4, 2016 (Ordinance No. D-2268-16); and (iii) to adjust to the Test Year operational expenditures for changes that are fixed, known and measurable and will occur in the subsequent twelve (12) months and are included in the Utilitys 2016 Budget. Additionally, the Report includes the impact of the call rights waiver credit on the 2008 Current Interest Bonds impacted by this financing. In the course of preparing the Report, LWG did not conduct an audit of any financial or supplemental data used nor does it place any assurance thereon. Certain projections and adjustments have been made which may vary over time from actual results. We have no responsibility to update this Report for events and circumstances occurring after October 18, 2016. Exhibit A Carmel, Indiana Balance Sheet as of December 31, 2015, 2014, 2013, and 2012 1 2Utility Plant 3Utility Plant in Service$ 204,739,630$ 202,148,514$ 198,909,809$ 173,588,225 4Land and Land Rights 2,993,628 2,981,508 3,464,195 2,496,299 5Less: Accumulated Depreciation (38,946,951) (34,740,626) (30,311,504) (27,502,698) 6Net Utility Plant in Service 168,786,307 170,389,396 172,062,500 148,581,826 7Add: Construction Work in Progress 10,393,586 9,688,865 7,032,714 27,381,789 8Net Utility Plant 179,179,893 180,078,261 179,095,214 175,963,615 9Restricted Assets 10Depreciation Fund - 0 0 2 11Bond & Interest 1,381,147 1,300,573 1,226,714 1,146,140 12Meter Deposits 42,600 40,650 39,190 37,565 13Water Main Extensions (Availability) (1,986,530) (1,347,943) 13 - 14Waterworks Sinking 59 419 327,756 922,466 15Petty Cash & Working Fund 400 400 400 400 16Total Restricted Assets (562,324) (5,901) 1,594,072 2,106,572 17Current and Accrued Assets 18Operating Fund (3,500,078) (1,365,985) 19,258 222,298 19Facilities Expansion (Connection) 2,609,057 958,810 90 16,609 20Accounts Receivable - Customer 216,178 240,324 248,906 247,401 21Uncollectible A/R (51,017) (51,017) (89,626) (70,886) 22Receivable from Sewer Utility - - - 398,510 23Other Accounts Receivable 2,732,354 2,448,588 877,817 1,195,272 24Container Inventory 6,155 5,955 5,105 4,510 25Materials and Supply Inventory 248,577 239,777 251,851 185,772 26Prepaid Expenses and Postage 81,924 75,722 98,248 75,044 27Total Current and Accrued Assets 2,343,150 2,552,173 1,411,650 2,274,530 28Deferred Debits 29Deferred Debits - Rate Case 24,562 44,462 66,693 88,924 30Unamortized Debt Discount & Expense - - - 1,494,972 31Mains for Indianapolis - - - 3,102,998 32Total Deferred Debits 24,562 44,462 66,693 4,686,893 33Total Assets and Other Debits$ 180,985,281$ 182,668,996$ 182,167,629$ 185,031,611 SEE TRANSMITTAL LETTERFOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 1 - Exhibit A (continued) Carmel, Indiana Balance Sheet as of December 31, 2015, 2014, 2013, and 2012 1 2Equity Capital 3Unappropriated - Retained Earnings$ 26,548,247$ 26,504,946$ 26,204,879$ 28,476,916 4Long-Term Debt 5Waterworks Revenue Coupon Bonds of 2008 60,920,000 61,795,000 62,400,000 62,790,000 6Less: Current Portion (1,175,000) (875,000) (605,000) (390,000) 7Waterworks Revenue Capital Appreciation Bonds 2008 31,114,647 29,409,010 27,796,859 26,273,075 8Junior Waterworks Revenue Bonds of 2012 19,395,000 20,105,000 20,805,000 21,455,000 9Less: Current Portion (730,000) (710,000) (700,000) (650,000) 10Long Term 2012 Bonds Premium 547,656 574,589 601,523 628,457 11Other Long-Term Debt (More than 1 Year) 14,062,978 15,035,153 15,956,594 16,829,948 12Less: Current Portion (1,025,702) (972,175) (921,441) (873,354) 13Total Long Term Debt 123,109,579 124,361,577 125,333,535 126,063,126 14Current and Accrued Liabilities 15Vouchers Payable 221,653 397,753 402,856 263,467 16Construction Contracts Payable 116,391 160,800 155,542 610,236 17Accrued Wages Payable 107,003 96,922 78,497 60,363 18Accrued Vacation & Compensation 236,568 221,952 263,746 209,988 19Accounts Payable - Associated Companies 778,599 1,306,599 770,057 553,627 20Other Long Term Debt (Due 1 Year) 1,025,702 972,175 921,441 873,354 21Due to Other Funds - - - 3,050 22IWC Contracts - 47,290 47,290 23Accrued Taxes 57,725 54,399 51,669 53,365 24Accrued Interest Payable 616,896 626,554 634,181 638,948 25Prepaid Turkey Hill - 20,170 20,170 20,170 26Republic - Trash 136,626 223,936 124,898 95,764 27Storm water 268,015 280,888 - - 28Bonds Payable (Due 1 year) 1,905,000 1,585,000 1,305,000 1,040,000 29Customer Deposits 42,600 40,650 39,190 37,565 30Total Current and Accrued Liabilities 5,512,778 5,987,796 4,814,537 4,507,189 31Contributions in Aid of Construction 32Advances for Construction - - - 169,703 33Contributions-Aid of Construction 25,814,677 25,814,677 25,814,677 25,814,677 34Total Contributions in Aid of Construction 25,814,677 25,814,677 25,814,677 25,984,380 35Total Liabilities and Other Credits$ 180,985,281$ 182,668,996$ 182,167,629$ 185,031,611 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 2 - Exhibit B Carmel, Indiana Statement of Income for the 12 months Ended December 31, 2015, 2014, 2013, and 2012 1Operating Revenues 2Residential Sales$ 9,992,734$ 9,603,421$ 11,045,498$ 12,519,323 3Commercial Sales 3,079,331 3,023,827 2,864,893 3,049,541 4Unmetered Sales 27,962 34,753 26,860 57,890 5Private Fire Protection 144,692 135,639 130,108 125,357 6Sales for Resale - - 12,522 7Misc. Service Revenue 107,294 112,395 92,310 84,754 8Other Water Revenue 84,905 108,782 147,918 140,637 9NSF Charge 3,168 2,706 4,257 4,059 10Reconnection Charges 60,843 61,304 56,656 58,628 11Total Operating Revenues 13,500,929 13,082,827 14,368,500 16,052,712 12Operating Expenses 13Operation and Maintenance Expenses 14Source Supply - Operations 15Purchased Water 697,021 301,401 324,585 2,396,513 16Purchased Power 488,233 17Total Source of Supply Operations Expense 1,185,254 301,401 324,585 2,396,513 18Source Supply - Maintenance 19Chemicals 2,400 3,840 1,757 - 20Materials & Supplies 60,161 22,602 41,738 30,510 21Contractual Service - Other 66,617 167,426 92,406 41,315 22Miscellaneous Expense 110 60 - 200 23Total Source of Supply Maintenance Expense 129,288 193,928 135,901 72,025 24Water Treatment - Operations 25Salary-Wage-Employee 951,155 739,427 785,612 730,675 26Employee Pension/Benefit 353,543 255,583 279,658 250,927 27Purchase Power 578,678 908,842 1,091,857 878,465 28Fuel for Power Production 824 3,770 - 19,148 29Chemicals 951,717 676,012 734,393 766,860 30Materials & Supplies 45,219 33,792 49,913 35,669 31Contractual Service - Testing 43,722 22,875 25,040 24,034 32Contractual Service - Other 86,851 75,283 64,385 38,891 33Insurance - Vehicle 9,882 10,327 9,818 8,331 34Insurance - General Liability 7,128 7,449 7,081 6,471 35Insurance - Workman's Compensation 16,355 16,355 14,868 14,868 36Insurance - Other 23,554 24,614 23,399 14,459 37Miscellaneous Expense - - 350 69 38Total Water Treatment Operations Expense 3,068,628 2,774,329 3,086,372 2,788,867 39Water Treatment - Maintenance 40Materials & Supplies 95,947 83,280 97,618 64,221 41Contractual Service - Other 50,321 76,893 50,903 47,181 42Transportation Expense 30,724 57,388 63,005 49,987 43Insurance - General Liability 950 993 944 863 44Insurance - Other 1,884 1,969 1,872 1,157 45Total Water Treatment Maintenance Expense 179,826 220,523 214,342 163,409 46Trans. & Distribution - Operation 47Employee Pension/Benefit 5,460 5,980 2,750 1,244 48Transportation Expense 70,841 104,042 95,484 72,614 49Insurance - Vehicle 13,175 13,768 13,088 11,106 50Insurance - Other 1,415 1,478 1,405 869 51Total Trans. & Distribution Operation Expense 90,891 125,267 112,727 85,833 1Trans. & Distribution - Maintenance 2Salary-Wage-Employee$ 1,686,033$ 1,877,185$ 1,818,027$ 1,521,098 3Employee Pension/Benefit 771,563 822,102 781,950 670,213 4Purchased Power 87,516 88,890 89,189 68,693 5Materials & Supplies 104,583 125,587 79,218 72,223 6Contractual Service - Testing 3,976 2,560 1,803 1,283 SEE TRANMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 3 - Exhibit B (continued) Carmel, Indiana Statement of Income for the 12 months Ended December 31, 2015, 2014, 2013, and 2012 7Contractual Service - Other 162,551 222,475 170,804 212,734 8Insurance - General Liability 7,128 7,449 7,081 11,471 9Insurance - Workman's Compensation 15,611 15,611 14,192 14,192 10Insurance - Other 2,448 2,558 2,432 1,503 11Total Trans. & Distribution Maintenance Expense2,841,409 3,164,417 2,964,695 2,573,410 12Customer Accounts 13Salary-Wage-Employee 336,087 327,904 310,117 277,049 14Employee Pension/Benefit 159,162 146,626 133,960 123,424 15Materials & Supplies 16,781 22,158 27,716 21,770 16Contractual Service - Other 131,386 128,402 126,062 147,844 17Transportation Expense 10,630 14,596 15,012 14,007 18Insurance - Vehicle 3,112 3,252 3,092 2,624 19Insurance - General Liability 2,852 2,981 2,834 2,590 20Insurance - Workman's Compensation 2,530 2,530 2,300 2,300 21Insurance - Other 1,225 1,280 1,216 752 22Bad Debt Expense - - 18,739 21,683 23Miscellaneous Expense 5,423 2,301 - 475 24Total Customer Accounts Expense 669,188 652,029 641,048 614,518 25Administration & General 26Salary-Wage-Employee 218,816 217,297 212,264 206,040 27Employee Pension/Benefit 95,777 89,488 88,071 81,329 28Materials & Supplies 2,675 1,357 2,739 1,797 29Contractual Service - Engineering 3,593 49,764 64,940 188,701 30Contractual Service - Accounting 13,841 1,248 6,392 5,945 31Contractual Service - Legal 6,962 4,406 19,374 16,900 32Contractual Service - Other 32,536 25,420 27,067 42,084 33Common Costs - Administration - 270,667 406,000 - 34Rental Building 50,737 38,854 92,919 97,057 35Transportation Expense 396 1,045 - 362 36Insurance - Vehicle 779 814 774 657 37Insurance - General Liability 1,903 1,989 1,890 1,727 38Insurance - Workman's Compensation 429 429 390 390 39Insurance - Other 16,014 16,735 15,909 9,831 40Advertising Expense - - - - 41Regulatory Commission - Rate Case 22,231 22,231 22,231 19,963 42Regulatory Commission - Other 12,752 - 4,308 3,857 43Miscellaneous Expense 46,189 35,219 36,488 49,907 44Total Administrative & General Expense 525,630 776,962 1,001,756 726,546 45Total Operation and Maintenance Expenses 8,690,114 8,208,856 8,481,426 9,421,120 46Depreciation Expense 4,470,616 4,476,212 3,092,031 3,028,239 47Taxes Other than Income Taxes 48Payroll Taxes 230,747 234,764 220,683 199,010 49Utilities Receipts Tax 191,188 184,846 202,820 226,446 50Tax Other Than Income - 51Total Taxes Other than Income 421,935 419,610 423,503 425,456 52Total Operating Expenses 13,582,665 13,104,678 11,996,961 12,874,815 53Net Operating Income$ (81,736)$ (21,851)$ 2,371,539$ 3,177,896 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 4 - Exhibit B (continued) Carmel, Indiana Statement of Income for the 12 months December 31, 2015, 2014, 2013, and 2012 1Other Income 2Interest Earnings$ 38,076$ 37,030$ 45,285$ 52,192 3Connection Charges 76,080 76,460 80,830 74,660 4Installation Charges 80,288 45,021 38,792 48,353 5Non-utility Income 152,821 98,409 100,850 90,478 6Amortization Debt Premium 26,934 26,934 26,934 33,887 7Total Other Income 374,199 283,854 292,691 299,571 8Other Expenses 9Interest Expense 6,185,122 6,064,908 6,159,461 5,714,418 10Call Premium - - - 82,350 11Amortization Debt Discount & Expense - - 1,494,972 272,856 12Loss on Disposal of Assets 85,539 181 17,341 183,896 13Total Other Expenses 6,270,661 6,065,089 7,671,774 6,253,520 14Capital Contributions 6,021,788 6,103,535 2,735,639 2,476,571 15Transfer Out - Payment In Lieu of Property Taxes 288 383 133 - 16Net Income$ 43,302$ 300,066$ (2,272,037)$ (299,482) SEE TRANMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 5 - Exhibit C Carmel, Indiana Line No. 1Operating Disbursements$ 8,690,114$ 8,137,971$ 8,137,971 2Taxes other than Income 421,935 440,360 483,832 3Extensions/Replacements 261,365 222,000 222,000 4Working Capital 982,071 982,071 5Indianapolis Obligation 1,800,000 1,800,000 1,800,000 6 - - - Maximum Annual Debt Service 7 5,606,376 5,276,028 - Actual 2015/2016 Debt Service 8 - - 7,844,059 Average Annual Debt Service through 2028 9Total Cash Revenue Requirements$ 16,779,790$ 16,858,430$ 19,469,933 10Residential Revenues$ 9,992,734 - - 11Commercial Revenues 3,079,331 - - 12 -$ 11,123,540$ 13,803,940 Residential Customer Revenues 13Commercial Customer Revenues - 3,079,331 3,499,033 14Misc. Rate Revenues 172,654 191,464 196,494 15Other Operating Revenues 1,656,210 1,673,340 1,673,340 (Assumes $1,400,000 of Connection fees used to pay IWC Obligation) 16 309,189 309,189 309,189 Non-Operating Revenues 17Earned Interest Revenues38,07638,07638,076 18Total Actual/Projected Revenues$ 15,248,194$ 16,414,940$ 19,520,072 Additional Revenues Required 19 (Line (9) minus Line (18))$ 1,531,596$ 443,490$ (50,139) 20Utilities Receipts Tax on Additional Revenues 21,747 6,297 21Gross Additional Revenues Required$ 1,553,343$ 449,787$ (50,139) 22Revenue Increase/ (Decrease)10.19%2.74% 23 1.09 Test Year Debt Coverage Prior to Any Increase 24 1.49 2016 Debt Payment Coverage Prior to Any Increase 25Projected Coverage - Average Annual Debt Service through 2028 1.39 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE -6- Schedule C Carmel, Indiana Line No. 1 2Expenditures subject to working capital calculation$ 8,578,331 3Multiply by: 60 Day Factor 0.1644 4Working Capital Requirement 1,410,278 LESS: Operating Cash Balance at December 31, 2015 5 (3,500,078) 6Funding Needed to restore working capital to calculated level$ 4,910,356 7Divide by: Funding Period in Years 5.0 8Annual Working Capital Requirement$ 982,071 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. -7- Exhibit D Carmel, Indiana 1Operating Revenues 2Residential Sales$ 9,992,734$ 1,130,806(1)11,123,540$ $ 2,680,400(5)13,803,940$ 3Commercial Sales 3,079,331 3,079,331 419,702(5)3,499,033 4Unmetered Sales 27,962 27,962 (5)5,030 32,992 5Private Fire Protection 144,692 (2)18,810 163,502 163,502 6Sales for Resale - - - 7Misc. Service Revenue 107,294 (2)10,729 118,023 118,023 8Other Water Revenue 84,905 84,905 84,905 9NSF Charge 3,168 (2)317 3,485 3,485 10Reconnection Charges 60,843 (2)6,084 66,927 66,927 11Total Operating Revenues 13,500,929 1,166,746 14,667,675 3,105,132 17,772,807 12Operating Expenses 13Source of Supply - Operations 1,185,254 1,185,254 1,185,254 14Source of Supply - Maintenance 129,288 129,288 129,288 15Water Treatment - Operations 3,068,628 3,068,628 3,068,628 16Water Treatment - Maintenance 179,826 179,826 179,826 17T & D - Operations 90,891 90,891 90,891 18T & D - Maintenance 2,841,409 2,841,409 2,841,409 19Customer Accounts 669,188 669,188 669,188 20Administrative & General 525,630 525,630 525,630 21Adjustment to the 2016 Budget$ (552,143)(3)(552,143) (552,143) 22Total Operating Expenses 8,690,114 8,137,971 8,137,971 23Taxes 24Payroll Taxes 230,747 (4)2,091 232,838 232,838 25Utility Receipts Tax 191,188 (4)16,334 207,522 (6)43,472 250,994 26Other Taxes - - - 27Total Operating Expenses 9,112,049 (533,718) 8,578,331 43,472 8,621,803 28Net Operating Revenues $ 4,388,880$ 1,700,464$ 6,089,344$ 3,061,660$ 9,151,004 SEE TRANMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. -8- Schedule D Carmel, Indiana 1 Additional Residential Revenues resulting from adjusting to 2 normal weather consumption plus customer growth $ 1,130,806 3Adjustment - Increase (Decrease)1,130,806$ 4 5Multiply By: 6Test Year Non-Recurring Revenues:% Increase 7Misc. Service Revenue$ 107,29410%10,729$ Private Fire Protection 144,69213%18,810 8NSF Charge 3,16810% 317 9Reconnection Charges 60,84310%6,084 10 Adjustment - Increase (Decrease)35,940$ 11 122016 Operating Budget excluding Taxes$ 8,137,971 13Less: Test Year Expenditures excluding Taxes (8,690,114) 14Adjustment - Increase (Decrease)(552,143)$ 15 162016 Budget Year Total Taxes$ 424,026 17Less: Test Year Total Taxes (421,935) 18Additional 2016 Budgeted Taxes$ 2,091 19Add: Additional Utility's Receipts Taxes due to Revenue Increases 20Additional Revenues subject to tax 1,166,746 21Multiply by: Tax Rate 1.4% 22Additional Utility's Receipts Tax due to Revenue Adjustment 16,334 23Adjustment - Increase (Decrease)18,425$ 24 25Additional Pro Forma Residential Revenues due to rate increase and removal of 5/8 inch meter step usage rates2,680,400$ 26Additional Pro Forma Commercial Revenues due to rate increase$ 419,702 27Additional Pro Forma Unmetered Revenues due to rate increase$ 5,030 28 29Additional Revenues$ 3,105,132 30Multiply By: Tax Rate1.4% 31Adjustment - Increase (Decrease)43,472$ SEE TRANMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. -9- Exhibit E Carmel, Indiana Summary Debt Amortization Schedule 12017$ 3,807,778 -$ 1,468,250$ 5,276,028 22018 4,091,456 - 1,473,350 5,564,806 32019 4,390,456 - 1,468,050 5,858,506 42020 4,695,706 - 1,469,800 6,165,506 52021 4,995,956 - 1,469,800 6,465,756 62022 5,344,169 - 1,470,200 6,814,369 72023 5,699,444 - 1,471,400 7,170,844 82024 7,124,319 - 1,336,200 8,460,519 92025 7,523,625 - 1,335,000 8,858,625 102026 9,386,000 - 1,337,600 10,723,600 112027 9,818,500 - 1,338,800 11,157,300 122028 10,274,250 - 1,338,600 11,612,850 132029 -$ 11,365,000 1,337,000 12,702,000 142030 - 11,870,000 1,339,000 13,209,000 152031 - 12,395,000 1,334,400 13,729,400 162032 - 12,950,000 1,338,400 14,288,400 172033 - 13,530,001 1,335,600 14,865,601 182034 - 14,130,000 1,337,876 15,467,876 192035 - - 1,337,700 1,337,700 202036 - - 1,335,076 1,335,076 21Total$ 77,151,659$ 76,240,001$ 27,672,102$ 181,063,762 22Average Annual Debt Service for 2017 - 20287,844,059$ 23Maximum Annual Debt Service15,467,876$ 1) Due to the savings achieved through the Carmel Bond Bank. SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 10 - Schedule E-1 11,365,00011,870,00012,395,00012,950,00013,530,00114,130,000 153,391,660 $ $ - ----- 1,445,800 153,391,660 $ $ 939,659939,659939,6596,184,6597,124,319811,813811,813811,8136,711,8137,523,625668,000668,000668,0008,718,0009,386,000466,750466,750466,7509,351,7509,818,500244,625244,625244,62510,029,62510,274,250 1,445,8001,285,7281,285,7281,247,7281,247,7281,200,3531,200,3531,142,9781,142,9781,087,0841,087,0841,019,7221,019,722 78,582,180 $ $ 5.000%1,311,9782,361,9783,807,778 1,050,0003,275,8995.790%10,854,10114,130,000 3,633,9595.610%7,731,04111,365,0003,553,5225.660%8,316,47811,870,0003,463,2875.720%8,931,71312,395,0003,388,7565.760%9,561,24412,950,0003,329,0575.780%10,200,94413,530,001 74,809,480 $ $ ------------ 94,44785,47575,91365,63153,80941,50028,37514,500 598,822122,197472,1971,520,0005.000%1,285,7282,805,7284,091,456113,447483,4471,895,0005.000%1,247,7283,142,7284,390,456104,197494,1972,295,0005.000%1,200,3533,495,3534,695,706529,4472,710,0004.125%1, 142,9783,852,9784,995,956 535,4753,170,0004.250%1,087,0844,257,0845,344,169545,9123,660,0004.375%1,019,7224,679,7225,699,444550,6315,245,0004.875%558,8095,900,0004.875%566,5008,050,0005.000%583,3758,885,0005.000%594,5009,785, 0005.000% 7,312,803 $ $ - 11 - Carmel, Indiana------ Amortization Schedule 865,622709,500495,125259,125 1,445,8002,960,8001,407,9253,277,9251,361,1753,626,1753,989,550 1,304,5501,237,4254,382,4251,172,5594,792,5591,095,6345,225,6341,005,2916,735,2917,270,6229,284,5009,935,125 13,530,00114,130,000 10,624,12511,365,00011,870,00012,395,00012,950,000 160,704,463 $ $ Waterworks Revenue Bonds of 2008, Series B ---- 865,622709,500495,125259,125 1,445,8001,407,9251,361,175 1,304,5501,237,4251,172,5591,095,6341,005,291 80,314,983 $ $ SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. 5.000%1,445,800 5.000%1,407,9255.000%1,361,1755.000%1,304,5504.125%1,237,4254.250%1,172,5594.375%1,095,6344.875%1,005,2914.875%865,6225.000%709,5005.000%495,1255.000%259,1255.610%7,731,0415.660%8,316,4785.720%8,931, 7135.760%9,561,2445.780%10,200,9445.790%10,854,101 1,515,0001,870,0002,265,0002,685,0003,145,0003,620,0004,130,0005,730,0006,405,0008,575,0009,440,0003,633,9593,553,5223,463,2873,388,7563,329,0573,275,899 80,389,480 10,365,000 $ $ 9,993,7129,993,7126,604,9566,604,9563,275,8993,275,899 80,389,48078,874,48077,004,48074,739,48072,054,48068,909,48065,289,48061,159,48055,429,48040,449,48017,010,52113,456,999 49,024,48031,009,48020,644,480 $ 111/1/1680,389,48025/1/17311/1/1778,874,48045/1/18511/1/1877,004,48065/1/19711/1/1974,739,48085/1/20911/1/2072,054,480 105/1/211111/1/2168,909,480125/1/221311/1/2265,289,480145/1/231511/1/2361,159,480165/1/241711/1/2455,429,480185/1/251911/1/2549,024,480205/1/262111/1/2640,449,480225/1/272311/1/2731,009,480245/1/2825 11/1/2820,644,480265/1/292711/1/2917,010,521285/1/302911/1/3013,456,999305/1/313111/1/31325/1/323311/1/32345/1/333511/1/33365/1/3437Total NOTE: The Waiver Credit for the 2008 Current Interest Bonds is due to the savings achieved resulting from the Carmel Bond Bank purchase of the 2008 Current Interest Bonds from the Indiana Bond Bank. Schedule E-2 Carmel, Indiana Junior Waterworks Revenue Bonds of 2012 Amortization Schedule 111/1/16$ 361,625$ 361,625 25/1/17$ 745,0002.000% 361,625 1,106,625$ 1,468,250 311/1/17 354,175 354,175 45/1/18 765,0002.000% 354,175 1,119,175 1,473,350 511/1/18 346,525 346,525 65/1/19 775,0003.000% 346,525 1,121,525 1,468,050 711/1/19 334,900 334,900 85/1/20 800,0002.500% 334,900 1,134,900 1,469,800 911/1/20 324,900 324,900 105/1/21 820,0003.000% 324,900 1,144,900 1,469,800 1111/1/21 312,600 312,600 125/1/22 845,0004.000% 312,600 1,157,600 1,470,200 1311/1/22 295,700 295,700 145/1/23 880,0004.000% 295,700 1,175,700 1,471,400 1511/1/23 278,100 278,100 165/1/24 780,0004.000% 278,100 1,058,100 1,336,200 1711/1/24 262,500 262,500 185/1/25 810,0004.000% 262,500 1,072,500 1,335,000 1911/1/25 246,300 246,300 205/1/26 845,0004.000% 246,300 1,091,300 1,337,600 2111/1/26 229,400 229,400 225/1/27 880,0004.000% 229,400 1,109,400 1,338,800 2311/1/27 211,800 211,800 245/1/28 915,0004.000% 211,800 1,126,800 1,338,600 2511/1/28 193,500 193,500 265/1/29 950,0004.000% 193,500 1,143,500 1,337,000 2711/1/29 174,500 174,500 285/1/30 990,0004.000% 174,500 1,164,500 1,339,000 2911/1/30 154,700 154,700 305/1/31 1,025,0004.000% 154,700 1,179,700 1,334,400 3111/1/31 134,200 134,200 325/1/32 1,070,0004.000% 134,200 1,204,200 1,338,400 3311/1/32 112,800 112,800 345/1/33 1,110,0004.730%*112,800 1,222,800 1,335,600 3511/1/33 86,438 86,438 365/1/34 1,165,0004.723%*86,438 1,251,438 1,337,876 3711/1/34 58,850 58,850 385/1/35 1,220,0004.717%*58,850 1,278,850 1,337,700 3911/1/35 30,038 30,038 405/1/36 1,275,0004.712%*30,038 1,305,038 1,335,076 41Total18,665,000$ $ 9,007,102$ 27,672,102$ 27,672,102 *Interest Rate depicted is the average rate based on the following: PaymentPrincipal @Principal @ Date4.25% Interest5.00% Interest 5/1/2033370,000$ $ 740,000 5/1/2034410,000 755,000 5/1/2035450,000 770,000 5/1/2036490,000 785,000 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE - 12 - Schedule E-3 Carmel, Indiana Annual Debt Coverage Calculations NetDebt ServiceRemaining Debt Service LineNetOperating Coverage forNet OperatingJuniorCoverage for No.Year2008 BondsIncome2008 BondsIncome2012 Bonds2012 Bonds 120173,807,778$ $ 8,560,752 2.25$ 4,752,974 1,468,250 3.24 220184,091,456 9,741,459 2.38 5,650,003 1,473,350 3.83 320194,390,456 10,244,959 2.33 5,854,502 1,468,050 3.99 420204,695,706 10,772,279 2.29 6,076,572 1,469,800 4.13 520214,995,956 11,324,495 2.27 6,328,539 1,469,800 4.31 620225,344,169 11,902,729 2.23 6,558,560 1,470,200 4.46 720235,699,444 12,508,151 2.19 6,808,707 1,471,400 4.63 820247,124,319 13,141,982 1.84 6,017,663 1,336,200 4.50 920257,523,625 13,805,496 1.83 6,281,871 1,335,000 4.71 1020269,386,000 14,500,026 1.54 5,114,026 1,337,600 3.82 1120279,818,500 15,226,960 1.55 5,408,460 1,338,800 4.04 12202810,274,250 15,987,748 1.56 5,713,498 1,338,600 4.27 13202911,365,000 16,783,902 1.48 5,418,902 1,337,000 4.05 14203011,870,000 17,617,000 1.48 5,747,000 1,339,000 4.29 15203112,395,000 18,488,689 1.49 6,093,689 1,334,400 4.57 16203212,950,000 19,400,690 1.50 6,450,690 1,338,400 4.82 17203313,530,001 20,354,793 1.50 6,824,792 1,335,600 5.11 18203414,130,000 21,352,874 1.51 7,222,874 1,337,876 5.40 192035 - 22,396,882N/A22,396,882 1,337,700 16.74 202036 - 23,068,789N/A23,068,789 1,335,076 17.28 1) 2016 Rate Increase not effective until May billings. 2) 1.09% Annual Customer Growth Factor. 3) 3.00% Automatic Annual Increase in Rates after May 2, 2016 increase. 4) 3.00% Annual Expense Increase. 5) Annual Indianapolis Obligation of $1.8 Million ends on 12/31/2025. 6) CAB payments begin in 2029. 7) 2008 Debt Final Payment 2034. SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. -13- Exhibit F -- 1.77 1.09%3.00%3.00% 19,038 234,625553,133525,813154,595 7 (888,440) Year2,718,4375,408,4301,769,990 (1,750,000) $ $10,938,540 -- 1.78 1.09%3.00%3.00% 19,038 227,791537,022510,498154,595 6 Year2,668,3865,228,7571,718,437 (1,250,000)(1,260,320) $5,261,993 $2,769,990$ $10,619,942 -- 1.78 1.09%3.00%3.00% 19,038 221,156521,381495,629154,595 5 Year2,619,7925,028,1971,668,386 (1,250,000)(1,109,811) $5,032,371 $2,718,437$ -- 1.78 1.09%3.00%3.00% 19,038 214,715506,195481,193154,595 (656,000) 4 5,060,2247,348,3091,619,792 Year(4,072,517) $4,780,405 $2,668,386$ ---- 1.78 1.09%3.00%3.00% 19,038 3 208,461491,451467,178154,595 Year 2,881,9385,060,2241,689,280 $4,560,085 $2,619,792$ -14- --- 1.68 1.09%3.00%3.00% 19,038 202,389477,137453,571309,189202,887 2 2,881,9381,429,722 Year $4,350,286 $5,060,224$ $18,016,907$18,760,298$19,534,362$20,340,365$21,179,624$22,053,511 --- 1.74 1.09%0.00%0.00% 38,076 196,494463,240440,360309,189202,887 (222,000)(272,000)(372,000)(472,000)(572,000)(672,000)(772,000) (102,494) 8,137,9719,682,110(1)9,251,5739,529,1209,814,99410,109,44410,412,7271,438,078 Year (1,800,000)(1,800,000)(1,800,000)(1,800,000)(1,800,000)(1,800,000)(1,800,000) (3,597,884) 11,531,64110,027,0799,915,09210,418,59110,945,91111,498,12812,076,361 $5,276,028$5,564,806$5,858,506$6,165,506$6,465,756$6,814,369 $4,751,051 $2,881,938$ Carmel, Indiana (1) Year 2 Operation and Maintenance Expense includes an additional $700,000 for tank painting. This additional cost for tank painting will be funded from Availability and Connection Fees. $17,302,973$17,962,707$18,696,433$19,460,210$20,255,272$21,082,902$21,944,437$22,841,269$8,578,331$10,135,681$9,718,751$10,010,313$10,310,623$9,384,376$8,560,752$9,741,459$10,244,959$10,772,279$11,32 4,495$11,902,729$5,606,376$5,925,265$202,887 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. ASSUMPTIONS: (excluding line 16 Fees) Customer Growth % Yearly Rate Increase % Annual Increase % to Expenses DESCRIPTION Actual Debt Service Coverage 1234516Operating Revenues:7Carmel Rate Revenues8Misc Rate Revenues9Non Recurring Fees 32O&M Ending Cash Balance33Minimum Required O&M Cash Balance 10Total Operating Revenues11Operating Expenses:12 Operation and Maintenance Expense 13 Taxes 14Total Operating Expenses15Operating Margin16Availability/Connection Fees for IWC Obligation1,800,0001, 138,100(1)17Usage of Previously Accumulated Debt Funds18Interest Earnings19Misc Non-Operating Revenues20 Total Cash Flow Available for Debt Service21LESS:22Total Debt Service Requirement2324Cash Flow after Debt Service25Indianapolis Obligation26Normal Annual Capital Expenditures27Debt Service Reserve28Beginning Cash29Ending Cash Balance30Less: Transfer for Future Debt Payments31Less: Transfer to Depreciation Fund No. Line Exhibit F - 1.34 1.09%3.00%3.00% 19,038 288,559680,284646,684154,595 (920,131) 14 3,113,4615,896,9952,176,865 Year (1,800,000) $ $13,453,024 - 1.39 1.09%3.00%3.00% 19,038 280,154660,469627,848154,595 13 3,051,9046,228,4352,113,461 Year (1,800,000)(1,314,974) $4,255,535 $3,176,865$ $13,061,188 - 1.38 1.09%3.00%3.00% 19,038 271,994641,232609,561154,595 12 2,992,1405,963,4322,051,904 Year (1,800,000)(1,111,529) $4,548,531 $3,113,461$ $12,680,765 - 1.37 1.09%3.00%3.00% 19,038 264,072 622,556591,807154,595 (920,035) 11 2,934,1165,712,1741,992,140 Year (1,800,000) $4,243,293 $3,051,904$ $12,311,423 - 1.58 1.09%3.00%3.00% 19,038 256,381604,423574,570154,595 10 (442,170) Year1,934,116 2,877,7835,126,286 (1,750,000) $2,992,140$ $3,950,058 -15- $11,952,838 -- 1.57 1.09%3.00%3.00% 19,038 248,914586,819557,835154,595 9 (478,403) Year2,823,0904,906,1851,877,783 (1,550,000) $5,120,504 $2,934,116$ $11,604,697 -- 1.77 1.09%3.00%3.00% 19,038 241,664569,727541,587154,595 8 (872,000)(972,000)(1,072,000)(1,172,000)(1,272,000)(1,372,000)(1,472,000) Year2,769,9905,608,9301,823,090 (1,800,000)(1,800,000)(1,800,000)(1,750,000)(1,035,840) 10,725,10911,046,86211,378,26811,719,61612,071,20412,433,34012,806,34012,681,78313,315,61413,979,12914,673,65815,400,59316,161,38116,957,535 $4,855,095 $2,877,783$ Carmel, Indiana $22,963,456$23,910,946$24,897,530$25,924,821$26,994,499$28,108,313$29,268,083$23,774,847$24,746,679$25,758,334$26,811,449$27,907,725$29,048,936$30,236,926$11,266,696$12,508,151$13,141,982$13,805,496$ 14,500,026$15,226,960$15,987,748$16,783,902$7,170,844$8,460,519$8,858,625$10,723,600$11,157,300$11,612,850$12,702,000$5,510,939$2,823,090 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. ASSUMPTIONS: (excluding line 16 Fees) Customer Growth % Yearly Rate Increase % Annual Increase % to Expenses DESCRIPTION Normal Annual Capital ExpendituresLess: Transfer for Future Debt PaymentsLess: Transfer to Depreciation FundO&M Ending Cash BalanceMinimum Required O&M Cash Balance Operating Revenues:Carmel Rate RevenuesMisc Rate RevenuesNon Recurring FeesTotal Operating RevenuesOperating Expenses: Operation and Maintenance Expense Taxes Total Operating ExpensesOperating MarginAvailability/Connection Fees for IWC ObligationUsage of Previously Accumulated Debt FundsInterest EarningsMisc Non-Operating Revenues Total Cash Flow Available for Debt ServiceLESS:Total Debt Service RequirementActual Debt Service Coverage Cash Flow after Debt ServiceIndianapolis ObligationDebt Service ReserveBeginning CashEnding Cash Balance Exhibit F -- 0.00%3.00%3.00%17.41 19,038 354,891836,663795,339154,595 21 3,599,2902,677,269 Year 23,334,635 (19,657,367) $ $16,545,521$21,907,345 -- 0.00%3.00%3.00%16.87 19,038 344,554812,294772,174154,595 20 3,523,5832,599,290 Year 22,684,397 (19,085,107) $3,677,269$ $16,063,613$21,232,815 -- 2.39 1.09%3.00%3.00% 19,038 334,518788,635749,683154,595 19 3,450,0802,523,583 Year 23,004,586 (19,481,004) $3,599,290$ $21,526,506 $15,595,740 -- 1.86 1.09%3.00%3.00% 19,038 324,775765,665727,848154,595 18 7,088,12415,467,8763,378,7192,450,080 Year 14,257,667 (10,807,587) $3,523,583$ $15,141,496 - 1.37 1.09%3.00%3.00% 19,038 315,316743,364706,649154,595 17 3,309,4366,823,3582,378,719 Year (1,800,000)(1,644,639) $12,750,949 $3,450,080$ -16- $14,700,482 - 1.36 1.09%3.00%3.00% 19,038 306,132721,713686,067154,595 16 3,242,1716,503,0922,309,436 Year (1,800,000)(1,393,657) $5,285,922 $3,378,719$ $14,272,313 - 1.35 1.09%3.00%3.00% 19,038 297,216154,595 700,692666,084 15 2,242,171 3,176,8656,186,497 Year (1,572,000)(1,672,000)(1,772,000)(1,872,000)(1,972,000)(2,072,000)(2,172,000)(1,800,000)(1,144,327) 13,190,53013,586,24613,993,83314,413,64814,846,05715,291,43915,750,18217,790,63318,662,32219,574,32227,616,55036,994,38222,570,51523,242,421 $4,932,922 $3,309,436$ Carmel, Indiana $30,475,706$31,733,157$33,042,491$34,405,849$35,825,461$37,303,647$38,422,756$31,473,614$32,761,002$34,101,171$35,496,289$36,948,614$38,460,495$39,614,310$13,856,614$17,617,000$18,488,689$19,400,690$ 20,354,793$21,352,874$22,396,882$23,068,789$13,209,000$13,729,400$14,288,400$14,865,601$15,467,876$1,337,700$1,335,076$4,581,633$3,242,171 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. ASSUMPTIONS: (excluding line 16 Fees) Customer Growth % Yearly Rate Increase % Annual Increase % to Expenses DESCRIPTION Normal Annual Capital ExpendituresLess: Transfer for Future Debt PaymentsLess: Transfer to Depreciation FundO&M Ending Cash BalanceMinimum Required O&M Cash Balance Operating Revenues:Carmel Rate RevenuesMisc Rate RevenuesNon Recurring FeesTotal Operating RevenuesOperating Expenses: Operation and Maintenance Expense Taxes Total Operating ExpensesOperating MarginAvailability/Connection Fees for IWC ObligationUsage of Previously Accumulated Debt FundsInterest EarningsMisc Non-Operating Revenues Total Cash Flow Available for Debt ServiceLESS:Total Debt Service RequirementActual Debt Service Coverage Cash Flow after Debt ServiceIndianapolis ObligationDebt Service ReserveBeginning CashEnding Cash Balance Exhibit G Carmel, Indiana Monthly Base Charges and Monthly Consumption Rates Meter SizeNew Charge 5/8$ 11.76 3/4 14.83 1 16.29 1.5 28.10 2 39.11 3 76.34 4 119.12 6 184.13 8 272.11 Current/New UsagePer 1,000 Gallons First 9,000$ 2.68 Next 739,000 3.55 Over 748,000 4.38 UsagePer 100 Cubic Feet First 1,200 2.00 Next 98,500 2.66 Over 99,700 3.29 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 17 - Exhibit G Carmel, Indiana Monthly Base Charges and Monthly Consumption Rates Meter SizeCharge 5/8$ 11.76 3/4 14.83 1 16.29 1.5 28.10 2 39.11 3 76.34 4 119.12 6 184.13 8 272.11 10 360.11 UsagePer 1,000 Gallons First 11,000$ 2.92 Next 139,000 2.85 Over 150,000 2.70 UsagePer 100 Cubic Feet First 1,500$ 2.20 Next 18,500 2.16 Over 20,000 2.03 Cubic Feet Meter SizeGallons AllowedAllowed Current Charge 5/8$ 12.31 0 0 3/4 14.8300 1 25.03 2,000 300 1 1/2 57.25 9,000 1,300 2 93.59 18,000 2,400 3 196.68 41,000 4,000 4 285.02 57,000 7,600 6 625.52 153,000 20,400 8 1,142.91 305,000 40,200 10 1,524.5100 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 18 - Exhibit G Carmel, Indiana Monthly Charges Connection Size (inch)Charge 2$ 7 .40 3 1 6.40 4 2 1.80 6 3 6.80 8 7 2.39 10 1 39.40 Customer private fire protection service per month per hydrant per inch of hydrant size: Charge $ 9 .32 SEE TRANSMITTAL LETTER FOR INFORMATION SOURCE AND ASSUMPTIONS MADE. - 19 - The following is a summary of certain provisions of the Bond Bank Indenture not otherwise discussed in this Official Statement. This summary is qualified in its entirety by reference to the Bond Bank Indenture. During the period of this offering, a copy of the entire Bond Bank Indenture is available without charge from London Witte Group LLC, One Independence Center, 1776 North Meridian Street, Suite 500, Indianapolis, Indiana 46202. Unless otherwise defined in this Appendix or the context clearly indicates otherwise, the following are definitions of certain key terms used in this Appendix and elsewhere in the Official Statement. When used in this Appendix, such key terms refer to Bonds of the Bond Bank which terms may also be used in the Bond Bank Indenture. Any capitalized terms used in this Appendix and not otherwise defined herein will have the meanings set forth in the Bond Bank Indenture. Capitalized terms used elsewhere in the Official Statement, including other appendices hereto, shall have the meanings ascribed thereto, which meanings may be different than the definitions of such capitalized terms used in this Appendix. General Account Reserve Account Redemption Account Bond Issuance Expense Account Upon the delivery of the Series 2016 Bonds, the City proposes to execute and deliver a continuing disclosure undertaking agreement in substantially the following form: H-1 H-2 W ATER W ORKS R EVENUE B ONDS