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� (��r`����� /� �� IIII (� EXHIBIT C <br />II�AWI?ilk U�AU <br />H. J. Umbaugh 2 Associates <br />canned Public Accountants. LLP <br />11211 Avenue <br />Suite C <br />Mishawaka, IN 46544 <br />Phone: 574 935 5178 October 21, 2015 <br />Fax: 574-935-5928 <br />www.umbaugb.com <br />Mr. Eric C. Horvath, Director <br />Ms. Kara M. Boyles <br />City of South Bend <br />1316 County -City Building <br />South Bend, Indiana 46601 <br />Re: South Bend (Indiana) Municipal Wastewater Utility - Carriage Hills Customer Bill Calculation <br />Dear Eric and Kara: <br />Below is a table calculating proposed monthly Carriage Hills sewage bills at various flow levels. The <br />calculation includes a monthly credit for the assumed collection system asset net value remaining after the <br />proposed Rural Development Bonds are retired. Additional detail for the calculation is provided in the <br />footnotes below. <br />Gross Net <br />Monthly South Bend Debt Monthly Less: Monthly <br />Flow Retail Rates Service DSR Bill Credit Bill <br />(in gallons) (1) (2) (2) (3) <br />3,000 $41.16 $66.67 $6.67 $114.50 ($18.45) $ 96.05 <br />5,000 48.67 66.67 6.67 122.01 (18.45) 103.56 <br />9,000 63.70 66.67 6.67 137.04 (18.45) 118.59 <br />(1) Effective I 7 I i2016 <br />(2) Proposed Carriage Hills Debt Service $140,000 <br />Proposed Debt Service Reserve $14,000 <br />Divided by Carriage Hills customer count - 175 - 175 <br />Subtotal $800 $80 <br />Divided by 12 months - 12 12 <br />Monthly charge $66.67 r $6.67 <br />Based on $3,100,000 Bond amortized at 3.25%. over 40 years (Rural Development). <br />pP Assumes the debt service reserve is funded over 10 years. <br />(3) Asset original value $3,100,000 <br />Divided by asset useful life (years) 80 <br />Subtotal 1$38,750 <br />Multiplied by bond life (years) x 40 <br />Net value of asset remaining $1,550,000 <br />Divided by Carriage Hills customer count - 775 <br />Net value per customer $8,857.14 <br />Divided by number of monthly bills <br />(40 years + 12 months) - 480 <br />Monthly credit per customer $18.45 <br />1e" Per information provided by Bume Miller on 10/21/2015. <br />If you have any questions, please feel free to contact John Julien or myself. <br />Very truly yours, <br />UMBA�UGs <br />Eric <br />EJW:jb <br />