SUSTAINING WHAT MATTERS: Public Health, Community Responsibility,

the Environment and Economic Development

2 0 1 6 R E P O R T TO T H E C O M M U N I T Y

SENIOR MANAGEMENT

BOARD OF COMMISSIONERS

Standing (L-R):Gwen Ruff, SVP, Division of Strategic Planning, Employee Services and Corporate Relations; Joey Murphy, SVP, Division of Customer and

Financial Services; Billy Cobb, SVP, Division of Engineering and Field Services; John Peebles, SVP, Division of Water Resource Operations and Maintenance Sitting (L-R): Emory Blount, Executive Vice-President; Steve Davis, President

Dear Customers and Stakeholders,In 2016, the Columbus Water Works (CWW) team continued to work hard to improve water and sewer service to our customers through safe, cost effective and environmentally protective means. It seems that Mother Nature, aging infrastructure and accelerating technology are always keeping us on our toes.

A year that began with flooding ended in a drought. Droughts tend to raise concerns about the resilience of Columbus’ water supply. Historically, the CWW service area is very fortunate to have a high quality and drought tolerant water supply from Lake Oliver. However, droughts can lead to reduced flows in the river that can have unfavorable impacts on water uses in our area. For decades, Columbus has been striving to insure the sustainability of historical flows (i.e.1350 cubic feet per second, minimum daily flow) by having the Army Corps of Engineers manage releases from federal reservoirs to meet this target. This effort is ongoing.

As we plan for the future, our vision is to remain committed to protecting our community by providing essential drinking water of superb quality and quantity to support public health, economic development and environmental sustainability. CWW also recognizes that the quality of life in our community improves with active engagement of caring employees who strive to exceed customer expectations.

On behalf of the CWW team, it is a privilege to serve you.

Sincerely,

Steve Davis President of Columbus Water Works

(L-R) Reynolds Bickerstaff, Treasurer; Mayor Teresa Tomlinson; Sanders Griffith; Becky Rumer; and Karl Douglass, Chair.

2016 COLUMBUS WATER WORKS

For more information on our corrosion control

program visit: www.cwwga.org

CWW water is safe and meets all the

requirements under the EPA lead and copper regulations

CWW has

NO LEAD service lines

The Good News about Lead and Corrosion ControlColumbus Water Works (CWW) has no lead service lines in the CWW system and our corrosion control is effective and monitored closely. CWW’s compliance with the Environmental Protection Agency’s lead and copper rule has remained within regulatory limits since analysis began in 1992. In addition, we perform quarterly testing to measure metal corrosion rates to confirm optimal corrosion control.

GAWARN Hurricane Matthew AssistanceCWW is a proud member of the Georgia Water/Wastewater Agency Response Network (GAWARN), a group designed to unite water and wastewater utilities in Georgia. This network of utilities helps speed up the process of coordinating assistance during natural disasters by knowing who is willing to help and what kind of help each utility can provide. These time-saving measures are critical to providing clean and safe drinking water to our respective communities, as well as, protecting the environment from harmful sanitary sewer overflows.

In the wake of Hurricane Matthew, CWW was notified that several utilities in Savannah, Ga. needed assistance. A crew of five CWW employees: Troy Minkanic, Daniel Willet, Shane Stevenson, Buford Sasser and John Balkum answered the call.

PUBLIC HEALTHFort Benning is the only strategic national defense asset on the Chattahoochee River. The Columbus Water Works has greatly improved Fort Benning’s security and environmental stewardship through privat-izing our drinking water and wastewater systems. Before privatization, Fort Benning used to lose over one million gallons of water per day from failing infrastructure, but it now has one of the best water conservation records in the Army. Our state-of-the-art water treatment plant enables Fort Benning to be totally self-sufficient in an emergency, thus improving our resource security, and our wastewater treatment facility has signifi-cantly improved our wastewater discharge, making the Chattahoochee River a cleaner water resource for everyone.

George Steuber, Fort Benning • Deputy Garrison Commander

United Way of the Chattahoochee ValleyEach year, Columbus Water Works (CWW)employees raise money and volunteer their time to help the less fortunate through United Way of the Chattahoochee Valley. This staff of only 280 employees raised $89,300 in 2016 through employee donations and fundraisers.

Students Taking Action Towards the Environment University (S.T.A.T.E. U.)Educating our youth about the environment and the impact their actions have on it is very important to our community. Columbus Water Works, Oxbow Meadows Environmental Learning Center, Chattahoochee River Warden and Keep Columbus Beautiful Commission have developed an environmental awareness program called S.T.A.T.E. U. The program is aimed at students in middle and high school. Participating students, under the guidance of their science teachers, create a science project. At the end of their experiment, each group presents their findings to a panel of volunteer judges. The winning groups are awarded funds for their schools’ science departments.

COMMUNITY RESPONSIBILITY

S.T.A.T.E. U. project submitted by Carver High School students.

Lucas Hammock (left) and Joey Dickson were two of many Columbus Water Works employees who assisted at Easterseals West Georgia.

Customer Communications• Increased presence on Facebook• Community notifications for work

that may impact customers• Monthly bill inserts• Announcements on water bills• Public service announcements on

local TV• Blog messages posted on CWW website

(cwwga.org)

‘Imagine a Day without Water’ CampaignOn September 15, Columbus Water Works (CWW) joined more than 300 other water professionals, elected officials, nonprofit organizations and water providers across the Nation to raise awareness about the importance of water. Clean drinking water plays an important role in our nation’s public health and economic foundation. The “Imagine a Day without Water” campaign recognized water’s importance through social media and other communication platforms and promoted conversations on how water is essential, invaluable and worthy of investment.

Sustainability is not only about the environment of our community, but also maintaining quality of life for the people that live and work here. Columbus Water Works helps sustain those in need by supporting the United Way of the Chattahoochee Valley. Their team gives generously to the annual campaign, but they also volunteer throughout the year to help us and many other nonprofit organizations meet the needs of our community. Thank you to the entire Columbus Water Works team for doing all you do to help the United Way and our community!

Scott Ferguson, President, United Way of the Chattahoochee Valley

STEM and STEAM ProgramsCWW is proud to be a part of the local Science, Technology, Engineering and Math (STEM) and Science, Technology, Engineering, Art and Math (STEAM) programs designed to promote elementary student interest in science by exposing them to careers utilizing math and science.

This display in the Columbus Water Works' lobby explains the value of water to customers.

Creek Walk and Inspection ProgramThe Columbus Water Works (CWW) initiated the Creek Walk and Inspection Program to help reduce the impact of the sanitary sewer system on creeks and streams in Muscogee County. Creek Walk and Inspection Program team members walk the creeks, streams and zones in Columbus to ensure sanitary sewer infrastructure is working correctly, inspecting manholes, creek crossings and sewer lines. They also work with the Columbus Consolidated Government’s Rainwater Division to inspect select areas of the stormwater system and test suspected illicit discharges to the creeks and streams. To date, this program has led to over 137 corrective actions eliminating potential impacts to the streams in Muscogee County.

Inflow & InfiltrationIn 2009, CWW initiated a systematic, long-term program to identify and eliminate sources of rain-induced inflow and infiltration (I&I) into the sanitary sewer system. Using multiple inspection methods, including smoke testing, dye testing and CCTV inspection, CWW makes the necessary corrections to the public sanitary system and works with homeowners to make repairs to eliminate I&I from the private sewer laterals. During 2016, our Field Services I&I staff located and made 145 repairs to sewer lines, as result of the 67,291 linear feet of sewer lines smoke tested, the 56,544 linear feet of sewer lines CCTV’d and other investigative measures taken to secure our sanitary sewer system.

Internal Recycling ProgramCWW’s recycling program began in 1991, recycling 600 pounds of paper. In 2016, CWW recycled 100,730 pounds of recyclable materials including: printer cartridges, aluminum cans, electronics and paper.

THE ENVIRONMENT

137 Corrective Actions

35 Miles

Walked

Grease Recycling ProgramUsed cooking grease can wreak havoc on sanitary sewer lines because when grease cools it creates a thick coating inside the walls of the pipes. This coating can completely clog sewer lines, preventing wastewater from flowing to our wastewater treatment plant, leading to sanitary sewer overflows and backups into homes and businesses. To help combat this problem, CWW holds two free collection events each year, allowing the community to dispose of cooking grease. There are also eight (8) stationary collection sites where people can drop off their used kitchen grease to be recycled any day of the year.

In addition, a partnership was formed with commercial companies to recycle their cooking grease. In 2016, CWW collected 58,155 gallons of used cooking grease. This grease is converted into methane gas, helping to power our wastewater treatment plant.

Help-the-Hooch and Watershed Festival

Since the inception of Help-the-Hooch in the early ‘90s, CWW has been

directly involved in the river clean-up event. Our staff serves on the planning

committee and is actively involved in every aspect of the event from

organizing our own clean-up crews, distributing lunches to volunteers and

working at the Watershed Festival.

Since the inception of the Keep Columbus Beautiful Commission (KCBC), Columbus Water Works (CWW) has demonstrated their dedication to protecting our environment by providing stellar support to KCBCs’ on-going projects and programs. There is no doubt that the success of our efforts to engage, and educate individuals to take greater responsibility for protecting our environment would not be a success without CWW. Therefore, we are truly appreciative of CWW business partnership!

Gloria Westin-Smart, Executive Director, Keep Columbus Beautiful Commission

8,000+ Volunteers

133,120 Pounds of Trash

Collected

Apartments 46Commercial, Industrial, Institutional 72

Facilities with Fryer Grease 12Saturday Events –Total Participants 690 Stationary Sites 8

Recycling Program Partners

January 4,917February 4,550March 4,267April 4,296May 4,536June 4,986July 4,666August 5,296September 5,361October 5,022November 5,012December 5,246TOTAL 58,155

Gallons of Grease Recycled in 2016

Capital Improvement Program (CIP)The CIP, Columbus Water Works’ (CWW)plan for improvements for public facilities, infrastructure and assets is vital to the city and surrounding area. Projects in the 2014-2018 CIP are designed to bring efficiency, reliability and sustainability, enabling CWW to better serve customers.

Geographic Information SystemsThe Geomatics Department at CWW focuses on the spatial aspect of the water and sewer infrastructure, consisting of the Geographic Information System (GIS) and Surveying groups. Geomatics is a key component in collecting, analyzing and mapping assets such as manholes, hydrants, valves and mains. GIS helps analyze the current state of the underground assets, identify critical assets and determine the best long-term funding strategies based on data analysis. Geomatics provides mapping information regarding age, diameter, material, condition and spatial location. Every department at CWW utilizes GIS, whether it is through a printed map or a mobile application on an iPhone.

WATER SYSTEM ASSETS Columbus & Fort Benning

1,393 MILESWater Mains

9,042Hydrants

19,579Valves

20Tanks

17Booster Pump

Stations

2Water

Treatment Plants

SEWER SYSTEM ASSETS Columbus & Fort Benning

1,133 MILES Gravity Mains

40 MILESForce Mains

28,294 Manholes

84Lift Stations

1 Treatment Plant

The City of Columbus and our region is fortunate to have such a strong economic development partner in Columbus Water Works. With its commitment to planning and sustainability, the organization has demonstrated to us that we can count on them to help grow our economy. Given recent negative water quality events in other cities, we are fortunate to have a partner that delivers safe and clean water for the citizens it serves and works equally as hard to sustain the promise of always having vital and high quality water.

Brian Anderson, President & CEO, Greater

Columbus Georgia Chamber of Commerce

ECONOMIC DEVELOPMENT

2014-2016 Capital Improvements ProgramOPERATIONAL AREA COST PROJECTS

North Columbus Water Resources Facility

$12.84 Million

14

South Columbus Water Resources Facility

$29.58 Million

10

Distribution (water) System

$10.45 Million

6

Collection (wastewater) System

$10.27 Million

6

Miscellaneous $11.86 Million

5

Total $75 Million 41

Our Mission Provide our community a safe and dependable drinking water supply, enhance our water resources by collecting and treating wastewater and promote a legacy of responsible economic and environmental stewardship.

Our VisionTo be an outstanding provider of utility services, dedicated to protecting the environment, aspiring to new opportunities and compelled to excel in service to our community.

Our Values• Integrity• Customer Focused• Employee Oriented• Environmental

Stewardship• Innovation• Community Leadership

United Way Large Company of the Year Award

United Way Platinum Award

Georgia Association of Water Professionals (GAWP) Top Operator Award (Louis Smith)

GAWP Platinum Awards for Compliance – NCWRF

GAWP Plant of the Year –Camp Darby Well (FB)*

GAWP Gold Awards for Compliance – Fort Benning WTP

GAWP Gold Awards for Compliance – Tri Color Well (FB)*

GAWP Gold Awards for Compliance – Leyte (FB)*

GAWP Gold Awards for Compliance – Malone 17 (FB)*

GAWP Gold Awards for Compliance – McKenna 2 (FB)*

GAWP Gold Awards for Compliance – Good Hope (FB)*

GAWP Platinum Awards for Compliance – Hastings (FB)*

GAWP Platinum Awards for Compliance – Griswold (FB)*

GAWP Platinum Awards for Compliance – McKenna 1 (FB)*

GAWP Platinum Awards for Compliance – Carmouche (FB)*

GAWP Platinum Awards for Compliance – Camp Darby (FB)*

GAWP Certificate of Achievement – Tricolor Range (FB)*

GAWP Certificate of Achievement – McKenna Mount Range (FB)*

GAWP Certificate of Achievement – Malone 17 Range (FB)*

GAWP Certificate of Achievement – Good Hope Range (FB)*

GAWP Collection System of Excellence Award

GAWP Distribution System of Excellence Award

GAWP Laboratory Quality Assurance Wastewater Award – Certificate of Merit

GAWP Laboratory Quality Assurance Water Award – Certificate of Merit

GAWP Ira C. Kelley Award – Ken Mendenhall

Government Finance Officers Association (GFOA) – Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ended June 30, 2015

GFOA – Award of Financial Reporting Achievement (Individual Award – J. Murphy)

Employer Support of the Guard and Reserve – Patriotic Employer Award – Kevin White

US Army – Unit Challenge Coin Award – Brittany Jenkins

US Army – Unit Challenge Coin Award– Kevin White

US Army – Unit Challenge Coin Award– Howard Shiver

2016 AWARDS & RECOGNITIONS

*Fort Benning (FB)

The Columbus Water Works financial condition remained strong at year end with reliable plants and systems to meet demands. A solid liquidity position, conservative budgeting, and programmed annual rate increases continue. Projected rate increases over the next five years are projected to be below the national average. Columbus Water Works maintains one of the lowest rates among Southeastern cities.

During the fiscal year ended June 25, 2016, CWW delivered 8.88 billion gallons of water and treated 12.01 billion gallons of wastewater. The water distribution system includes more than 6 million feet of pipe in Columbus and more than 1 million feet of pipe in Fort Benning. The water distribution system served 65,847 metered accounts. The sewage collection system included more than 5 million feet of pipe in Columbus and almost 1 million feet of pipe in Fort Benning.

Total combined Columbus and Fort Benning operating revenues were $65.10 million, an increase over Fiscal Year 2015 of $3.15 million.

Operating expenses before depreciation/amortization increased $146 thousand, as compared to Fiscal Year 2015. Operating expenses, including depreciation/amortization, increased $1.57 million, up 2.71% from the Fiscal Year 2015.

Operating income for the year was $5.38 million, as compared to $3.81 million for Fiscal Year 2015. This amount includes activities related to Fort Benning contractual operations.

Columbus Water Works expended $25.43 million for capital improvements in Fiscal Year 2016.

Total Assets at year-end were 687 million. Reserves were maintained within established goals of 90 to 120 days for operational and coverage of capital improvements/depreciation for capital reserves.

For complete details of the Comprehensive Annual Financial Report visit: cwwga.org/plaintext/reports/reports.aspx

FINANCIAL SUMMARY

Condensed Statements of Net PositionFISCAL YEAR 2015 TO 2016 COMPARISON

For FY ended June 25, 2015 2016 $ Change % ChangeAssetsCurrent Assets And Other Assets $ 107,589,235 151,172,063 43,582,828 40.51%Capital Assets 532,677,130 535,904,410 3,227,280 0.61%Total Assets 640,266,365 687,076,473 46,810,108 7.31%

Deferred OutflowsDeferred Amount of Bond Refunding 6,271,375 6,702,580 431,205 6.88%Deferred Amount From Pensions 2,117,955 2,774,200 656,245 30.98%Total Deferred Outflows 8,389,330 9,476,780 1,087,450 12.96%

LiabilitiesOther Liabilities 17,404,598 18,480,282 1,075,684 6.18%Long-Term Liabilities 215,864,201 254,955,345 39,091,144 18.11%Total Liabilities 233,268,799 273,435,627 40,166,828 17.22%

Deferred InflowsDeferred From Pension Plan Investments 1,317,688 1,544,573 226,885 0.00%

Net PositionNet Investments In Capital Assets 362,066,987 368,582,857 6,515,870 1.80%Restricted For Capital Activities and Debt Service 15,253,741 18,865,351 3,611,610 23.68%Unrestricted 36,748,480 34,124,845 (2,623,635) -7.14%Total Net Position 414,069,208 421,573,053 7,503,845 1.81%

Rate Comparison System Average(20 CCF)ATLANTA

CHARLESTONRALEIGH

BIRMINGHAMCHATTANOOGA

CHARLOTTEJACKSONVILLE

TAMPANASHVILLE

MOBILEGREENVILLE

AUGUSTAMACON

MONTGOMERYSAVANNAH

COLUMBUSPHENIX CITYHARRIS CO.*TALBOT CO.* $62.73

$0 $100 $200 $300 $400$50 $150 $250 $350 $450

$415.92

*water onlyAssumes 20 ccf = 2,000 cubic feet = 15,000 gallonsRates as of April 2016: Columbus rate excludes CSO change

$80.47

$89.11

$109.44$92.36

$110.60

$86.49

$121.44$117.99

$132.75

$176.77$169.29

$189.30$182.19

$196.12

$152.58$151.47

$165.19

CHAN

GE IN

NET P

OSITI

ON

$7.5 M

2012 20142013 2015 2016

$10 M

$15 M

$5 M

$0

$4.8 M

$15.9 M

$7.3 M

$11.2 M

42%WATER

45%SEWER

13%OTHER

EXPENSES BY FUNCTION

Condensed Statements of Revenues, Expenses and Changes in Net Position

For FY ended June 25, 2015 2016 $ Change % Change

Operating Revenues

Water Sales $21,718,357 $22,961,046 $1,242,689 5.72%

Sewer Charges 23,917,336 25,388,760 1,471,424 6.15%

Fort Benning Water and Sewer Charges 7,026,101 7,036,223 10,122 0.14%

Fort Benning CM100 O&M Services 5,563,339 5,869,479 306,140 5.50%

Tapping, CSO fees and Miscellaneous Charges 3,732,865 3,848,169 115,304 3.09%

Total Operating Revenue 61,957,998 65,103,677 3,145,679 5.08%

Operating Expenses

System Services 7,190,561 7,494,474 303,913 4.23%

South Columbus Water Resources Facility 4,161,531 4,018,875 (142,656) -3.43%

North Columbus Water Resources Facility 4,142,140 4,319,753 177,613 4.29%

CSO Plants 992,213 1,018,617 26,404 2.66%

Managed Maintenance 2,921,780 2,838,810 (82,970) -2.84%

Engineering 1,431,265 1,446,900 15,635 1.09%

Information Services 1,370,108 1,563,593 193,485 14.12%

Water Quality Monitoring 2,026,323 1,979,474 (46,849) -2.31%

Fort Benning 4,649,812 4,435,279 (214,533) -4.61%

Customer Services 1,697,951 1,662,309 (35,642) -2.10%

Finance, ES and Administration 4,864,862 4,835,937 (28,925) -0.59%

Meter Maintenance 1,927,165 1,907,793 (19,372) -1.01%

Depreciation 20,773,415 22,200,954 1,427,539 6.87%

Total Operating Expenses 58,149,126 59,722,768 1,573,642 2.71%

Operating Income 3,808,872 5,380,909 1,572,037 41.27%

Non-operating Revenue (expenses)

Interest Revenue 136,245 232,343 96,098 70.53%

Ft Benning Financing Contract - 2009 Bond Issuance 4,860,492 4,860,492 - 0.00%

Administrative Fees and Other Revenue 1,138,833 (41,665) (1,180,498) -103.66%

Interest Expense (814,702) (850,935) (36,233) 4.45%

City of Columbus Participation Expense (3,243,185) (3,462,720) (219,535) 6.77%

Gain (loss) on Disposal of Assets 255,816 193,139 (62,677) -24.50%

Total Non-operating Revenue (expenses) 2,333,499 930,654 (1,402,845) -60.12%

Income Before Capital Grants and Contributions 6,142,371 6,311,563 169,192 2.75%

Capital Grants and Contributions 5,038,660 1,192,282 (3,846,378) -76.34%

Change in Net Position 11,181,031 7,503,845 (3,677,186) -32.89%

Net Position at Beginning of Year 402,888,177 414,069,208 11,181,031 2.78%

Ending Net Position $414,069,208 $421,573,053 $7,503,845 1.81%

OPERATING REVENUE BY SOURCE

35%WATER

39%SEWER

26%OTHER

Columbus Water Works 1421 Veterans Parkway

P.O. Box 1600Columbus, GA 31902

Main Office: (706) 649-3400 www.cwwga.org