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ChangeModernizationCollaborationandProgress.8FINANCIALSTABILITYTheYearinReviewWSSCbytheNumbersWell-informedfinancialdecisionsarebasedonavarietyofsometimescompetingfactors.Considerationmustbegiventotheeconomyregulatoryobligationsmarketconditionscustomeraffordabilityandtheenvironmenttonameafew.Byadheringtoawell-thought-outstrategicplanandbalancingthesefactorsWSSCovertheyearshassuccessfullybuiltandpreservedourstablefinancialfoundation.Atthesametimeweprovidedsoundcustomerserviceprotectedtheenvironmentandmeasurablequality-of-lifechangesfortheresidentsofMontgomeryandPrinceGeorgescounties.Keepinginmindthatouroperatingexpensesarefundedalmostentirelybychargesforwaterandsewerservicespaidbyourcustomersweworkhardtomanageourfundsinafiscallyresponsiblemanner.AsproofofthispointWSSCmaintaineditsAAAbondratingin2013fromthetopthreeratingagenciesFitchRatingsMoodysInvestorsServiceandStandardPoors.Theseratingscontributetolowercostsforourratepayers.DebtManagementInApril2013WSSCtookadvantageofitsAAAratingandfavorableinterestratestorefinance101560000ofexistingbondsresultingindebtservicesavingsof9200000totheCommissionsratepayersoverthenext13years.FinancialSummaryThefollowingarehighlightsofWSSCsfinancialaspectsinFY13eMaintainedAAAbondratingsfromtopthreeratingagencies.eIssued400millionofbondstofundnewconstructiononrehabilitationandreplacementofwaterandsewermains.eTookadvantageofhistoricallylowinterestratesandsavedratepayers8.5millionbyrefinancingolddebt.InNovember2012andApril2013WSSCissued250millionand150millionrespectivelyofConsolidatedPublicImprovementBondstofundnewconstructiononrehabilitationandreplacementofwaterandsewermains.FY13BudgetOverallFY13OperatingBudgetOverviewCapitalExpendituresbyCategoryCAPITAL788005000OPERATING661733000WATEROPERATING269337000SEWEROPERATING350941000BONDDEBTSERVICE41455000SystemImprovements240107000Environmental527194000Growth19984000