2016 MMSD Budget

Milwaukee Metropolitan
Sewerage District
2016 Proposed
Operations and Maintenance
&
Capital Budgets

Milwaukee Metropolitan Sewerage District
2016 Proposed Budget
Commissioners
Ben Gramling
Chair
John R. Hermes
Vice Chair
Lyle A. Balistreri
Eugene Manzanet
Carl Krueger
Jim Bohl
Kris Martinsek
Kathy Ehley
Milele Coggs
Nikiya Harris Dodd
Michael A. West
Executive Director
Kevin L. Shafer, P.E.
Division Directors
Susan B. Anthony
Legal Services
Mark T. Kaminski, CPA
Finance
Timothy R. Bate, P.E.
Planning, Research and Sustainability
Michael J. Martin, P.E.
Technical Services
Jeff Spence
Community Outreach and Business
Engagement
Sharon Mertens
Water Quality Protection
Managing and Contributing Staﬀ
Mark T. Kaminski, Director of Finance/Treasurer
Mickie Pearsall, Deputy Director of Finance
Theresa Zwieg, Management & Budget Analyst
Christine Durkin, Management & Budget Analyst
Don Nehmer, Controller
Rick Niederstadt, Capital Program Business Manager
Starr Pentek-Schuetz, Graphic Designer
RJ Pire, Budget Intern

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to
the Milwaukee Metropolitan Sewerage District, Milwaukee, WI for its annual budget for the fiscal year beginning January 1, 2015. In
order to receive this award, a governmental unit must publish a budget that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device.
This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and
we are submitting it to GFOA to determine its eligibility for another award.

2010
NACWA Public Information and Education Award
2010 Wisconsin APA Award - Planning Category, Kinnickinnic River Corridor Neighborhood Plan
Distinguished Public-Private Partnership Service Award from the National Council for Public Private Partnerships
GFOA Certificate of Achievement for Excellence in Financial Reporting
GFOA Distinguished Budget Presentation Award
2011
Daily Reporter Newsmakers of the Year Award-2011 Green Innovator of the Year
Earn and Learn Award
2012
ACEC Awards for Milwaukee County Grounds and 27th Street ISS (Deep Tunnel) Extension Projects
NACWA Peak Performance Award
NACWA Public Information and Education Award
Honor from the Housing Authority of the City of Milwaukee
2012 United States Water Prize – US Water Alliance
Community Partner Award
2013
Business Council – Strategic Partner of the Year Award
APWA – Environment Project of the Year Award
2014
American Public Works Association 2014 Project of the Year Award
2014 Public/Private Partnership Award
2014 Governmental Partner of the Year Award
2015
NACWA Water Resources Utility of the Future Award
2015 ACEC Engineering Excellence Award
Recent District Awards and Honors

2016 Proposed Operations & Maintenance and Capital Budgets
Table of Contents
Budget Message from the Executive Director................................................................................................ i
Combined Summary for Operations & Maintenance and Capital Budgets....................................1
Background, Statistical, and Supplemental Information.........................................................................1
Financial Planning Process..................................................................................................................................9
Budget Review and Adoption Calendar ......................................................................................................10
The District’s Financial Performance.............................................................................................................11
District Fund Structure and Comparison of Budgets..............................................................................12
Combined Summary of Expenses and Revenues.....................................................................................14
Strategic Plan................................................................................................................................................................17
Operations & Maintenance Budget Summary.............................................................................................25
Overview of the 2016 Operations & Maintenance Budget..................................................................25
District-wide Organization Chart ...................................................................................................................27
Staffing Summary.................................................................................................................................................28
Revenues and Expenditures.............................................................................................................................30
Sources of Funds ........................................................................................................................................................33
Funding Summary................................................................................................................................................33
User Charge Billings............................................................................................................................................34
Milorganite®
Sales ..............................................................................................................................................35
Other Income.........................................................................................................................................................36
Household Hazardous Waste Collection Program..................................................................................37
Industrial Waste Pretreatment Program......................................................................................................38
Surplus Returned..................................................................................................................................................39
Interest Income.....................................................................................................................................................39
Equipment Replacement Fund........................................................................................................................40
User Charge Stabilization Fund ......................................................................................................................40
Divisions
Commission............................................................................................................................................................41
Office of the Executive Director......................................................................................................................45
Legal Services ........................................................................................................................................................49
Finance.....................................................................................................................................................................53
Technical Services ................................................................................................................................................57
Planning, Research, and Sustainability.........................................................................................................61
Water Quality Protection...................................................................................................................................65
Community Outreach and Business Engagement...................................................................................69
Other Expenditures....................................................................................................................................................73
Fringe Benefits.......................................................................................................................................................73
Charges to Capital ...............................................................................................................................................74
Unallocated Reserve............................................................................................................................................75
Capital Budget
Capital Budget Summary ...........................................................................................................................................77

Table of Contents
Capital Budget Overview............................................................................................................................................77
2016 Capital Budget Summary of Revenues and Expenditures .........................................................80
Long-range Financing Plan ..............................................................................................................................81
Uses of Funds ........................................................................................................................................................82
Capital Sources of Funds............................................................................................................................................87
Actual and Projected Tax Levies.....................................................................................................................88
Water Reclamation Facilities
Jones Island Water Reclamation Facility Project Descriptions
Primary Treatment...............................................................................................................................................95
Secondary Treatment .........................................................................................................................................96
Advanced Treatment...........................................................................................................................................98
Solids Processing..................................................................................................................................................99
Solids Manufacturing.......................................................................................................................................101
General Projects.................................................................................................................................................105
South Shore Water Reclamation Facility Project Descriptions
Primary Treatment............................................................................................................................................116
Secondary Treatment ......................................................................................................................................118
Advanced Treatment........................................................................................................................................120
Solids Processing...............................................................................................................................................121
Solids Manufacturing.......................................................................................................................................125
General Projects.................................................................................................................................................125
Interplant Pipeline Project Descriptions
Interplant Pipeline.............................................................................................................................................132
Landfill Gas Pipeline Project Descriptions
Energy Gas Pipeline..........................................................................................................................................135
Conveyance Facilities
Conveyance Facilities Overview...................................................................................................................137
Conveyance Facilities Project Descriptions
MIS Subsystem 1 – South Shore Main Branch.......................................................................................139
MIS Subsystem 2 – Southwest Branch......................................................................................................139
MIS Subsystem 3 – Northwest Branch......................................................................................................140
MIS Subsystem 4- Northeast Branch.........................................................................................................142
MIS Subsystem 5 – North Side High Level Branch...............................................................................143
MIS Subsystem 6- South Side High Level Branch.................................................................................144
MIS Subsystem 7 – Low Level Branch .......................................................................................................145
General Interceptor Sewer System.............................................................................................................146
Inline Storage System Project Descriptions
Drop Shafts..........................................................................................................................................................150
Near-surface Collector Sewers.....................................................................................................................150
Combined Sewer Overflow Structures......................................................................................................150

Table of Contents
Central Control Room Project Descriptions
Conveyance System Central Control .........................................................................................................152
Watercourse and Flood Management Projects
Watercourse and Flood Management Overview ..................................................................................155
Milwaukee River Watershed..........................................................................................................................160
Menomonee River Watershed .....................................................................................................................162
Root River Watershed......................................................................................................................................169
Kinnickinnic River Watershed.......................................................................................................................169
Oak Creek Watershed......................................................................................................................................172
Lake Michigan Drainage.................................................................................................................................173
General Watercourse Projects......................................................................................................................173
Other Projects
Other Projects Overview.................................................................................................................................179
Other Projects Project Descriptions
Facilities Management ....................................................................................................................................180
Facilities Planning..............................................................................................................................................183
Workforce & Business Development Resource Program ..................................................................193
Information Technology Software Systems ............................................................................................194
Financial Planning.............................................................................................................................................196
Risk Management Program...........................................................................................................................197
Debt Service
Debt Service Overview....................................................................................................................................199
Debt Service Payments Compared to Total Capital Expenditures in the Six-year Forecast .201
District Bonds......................................................................................................................................................202
State Loans ..........................................................................................................................................................203
Appendices
Glossary.................................................................................................................................................................207
Pay Grade, Salary, and Wage Information...............................................................................................216
Budget Policies...................................................................................................................................................219
Proposed Capital Budget Line Item ...........................................................................................................224

i
September 5, 2015
Commissioners
260 West Seeboth Street
Milwaukee, Wisconsin 53204-1446
Commissioners:
I am pleased to submit the Milwaukee Metropolitan Sewerage District’s Proposed 2016 Operations &
Maintenance and Capital Budgets for which the primary goal is to ensure clean water. The goal of clean
water is espoused at all levels of government from federal, state to local; however, the burden of clean water
financing has shifted over the last several decades from federal to local sources. In the 1980s and 1990s, the
Water Pollution Abatement Program was supported by significant grant funding resulting from the Clean
Water Act. Today, federal financial resources for clean water are limited and face significant challenges to
expanding further funding in the future, although the needs for clean water continue to grow. This means
that, at least in the near-term, the District will continue to rely on local sources. The District remains engaged
in promoting expansions to federal funding for clean water. Until that time, the budgets balance and
prioritize limited financial resources against unlimited demands and continue to support the District’s mission
to cost-effectively protect the quality of the region’s water resources.
Financial planning has always been a strength of the District. Both budgets have long-range planning
incorporated into the process so that the impact of decisions made for the current year can be seen in future
years. There are several unknown factors that could impact the long-range planning on the Capital Budget
and the O&M Budget, so as the District proceeds through the next several years and gains more information,
a better understanding of the impact of these factors will be critical.
For the Capital Budget, the capital improvements program for 2018 and beyond is being developed by the
current facilities planning process. The Facilities Plan is taking a broad look at District facilities and will make
recommendations based on a needs analysis, innovations and prioritization. This will be completed in 2017
and the results will first be included in the 2018 budget. Currently the capital long-range financing plan
encompasses 2021, and the District is aware that changes could be forthcoming.
For the O&M Budget, the largest expenditure is the operating contract with Veolia Water-Milwaukee. This
contract expires in 2018. The District is evaluating options for the future which include a possible contract

ii
extension, a Request for Proposals process, or a return to public sector. This determination will also be done
in 2017 and will be included in the 2018 budget.
Moreover, the District continues its internal planning processes and has completed its Strategic Plan for 2016-
2018. The plan focuses on needs to better position itself and the region for success by 2018. Some of the
focus areas are addressing significant expected workforce transitions, planning for future information
technology needs and managing the rapid pace of change in technology, developing outreach plans to
promote District messaging, as well as developing financial planning scenarios to address future budget
challenges.
Highlights of the 2016 Capital Budget
The 2016 Capital Budget is $216,265,000. The 2016 tax levy increases 2.5 percent from the 2015 level. This
compares to a 4 percent increase projected for 2016 one year ago. The long-range financing plan includes a
tax levy increase of 4 percent for each year from 2017 through 2021. This is consistent with tax levy
projections for that period from one year ago.
Highlighted projects include:
CAPACITY: South Shore Capacity Improvements, Mill/Green Bay/Green Tree MIS Relief
ASSET MANAGEMENT: Jones Island and South Shore Building Roof Replacement, Milorganite Facilities
Improvement Phase III, Aeration Basin Concrete Rehabilitation, Conveyance Gate Rehabilitation,
Interplant Pipeline Improvements
SUSTAINABILITY: Fresh Coast Green Solutions, Green Solutions
WATERCOURSE AND FLOOD MANAGEMENT: 30th
Street Corridor, Underwood Creek Phase II,
Kinnickinnic River Flood Management, and the Greenseams®
program
Highlights of the 2016 Operations & Maintenance Budget
The 2016 Operations & Maintenance (O&M) Budget is $89,765,197. In the O&M Budget, the 2016 user
charge billings increase is 2.5 percent, which is on target with the projected 2.5 percent user charges billings
increase as forecast in the 2015 budget.
In the 2016 O&M Budget, user charge billings are $73.3 million, a 2.5 percent change from the 2015
budgeted level.
In addition to user charge billings, the District has other operating revenue sources. The District’s second
largest O&M revenue source is from Milorganite®
net revenue. The Milorganite®
net revenue in the 2016
O&M Budget is projected to be $7,830,000, a 0.7 percent increase from the 2015 O&M Budget. The District
continues to evaluate strategies to increase the current level of sales to address production levels. Other
District revenues, including Interest Income and Other Income, collectively decrease approximately $389,000.
The District administers an additional two cost recovery programs: the Industrial Waste Pretreatment Program
(IWPP) projected at $956,000 and the Household Hazardous Waste Collection Program (HHW) projected at

iii
$1.3 million. In addition to the above mentioned revenue sources, the District returns any available surplus
from prior fiscal years and has available reserves on an as-needed basis. In 2016, the $4.7 million surplus
from the 2014 budget which is applied to the 2016 budget is $747,000 greater than the 2015 budgeted level.
Total expenditures are increasing 1.0 percent, or $864,000, compared to the 2015 Operations & Maintenance
Budget.
In closing, the District’s 2016 budgets continue strong financial management, support operational needs,
provide needed capital improvements, and promote new initiatives. I look forward to working with you and
partners in the region as we move forward protecting water quality together.
Respectfully submitted,
Kevin L. Shafer, P.E.
Executive Director
"When we work together as a Region, we succeed as a Region”

Background, Statistical and Supplemental Information
The Milwaukee Metropolitan Sewerage
District is a state chartered,
governmental agency providing
wastewater services for 28 municipalities
with a population of about 1.1 million
people. The District’s chief
responsibilities are to provide water
reclamation services and to maintain
and improve watercourses for nearly all
of Milwaukee County, Wisconsin, and
portions of municipalities in surrounding
counties. While Milwaukee is the 31
st
largest city in the United States, its
regional wastewater system is among
the largest, most sophisticated, and
well run in the country. The District’s
411-square-mile planning area includes
all cities and villages (except the City of
South Milwaukee) within Milwaukee
County and 10 municipalities in the
surrounding counties of Ozaukee,
Washington, Waukesha, and Racine.
About 25 square miles, or six percent of
the District’s planning area, has
combined sewers. Approximately 385
square miles, or 94 percent of the
planning area, is separate sewer area.
A 3,813-mile system of collector sewers
and a 292-mile system of intercepting
and main sewers convey wastewater to
the two District-owned water
reclamation facilities. Additionally, there
are six miles of combined sewers, 23
miles of near surface collector systems,
as well as, 23 miles of Inline Storage that
conveys and stores wastewater for the
region.
Wastewater treatment within the
District’s service area is provided at two
District-owned water reclamation
facilities. One is the Jones Island Water
Reclamation Facility, which began operations in 1925. The other is the South Shore Water Reclamation Facility, which began
operations in 1968. On average, the two water reclamation facilities collect and treat more than 200 million gallons of
wastewater each day, and, with a daily capacity of 600 million gallons, they return clean, clear water to Lake Michigan.
In 1926, Jones Island was the first wastewater facility to recycle biosolids by producing an organic fertilizer known as
Milorganite
®
. This commercial fertilizer is sold throughout the United States and Canada for home lawn care as well as for
golf courses, country clubs, and other professional grounds.

The District is the
largest wastewater
treatment system under
private operations in the
United States.
Governance
The District’s governing body is the Milwaukee Metropolitan Sewerage Commission,
which is composed of 11 members. Seven commissioners are appointed by the Mayor
of the City of Milwaukee, and are subject to confirmation by the Common Council.
Four commissioners are appointed by the Intergovernmental Cooperation Council of
elected officials of cities and villages in the District other than the City of Milwaukee.
The Commission establishes and enforces District policies in compliance with statutory
responsibility and directs and controls budgetary, administrative, procedural,
operational and informational support for the District.
The Commission has two standing committees: the Policy, Finance and Personnel Committee and the Operations Committee. In
general, the Policy, Finance and Personnel Committee has jurisdiction over establishment of District policy, financial planning,
budget recommendations, award of contracts not related to conveyance, storage and treatment, reporting and audits,
personnel matters, labor relations, legal matters and legislation, and public information policies. The Operations Committee
has jurisdiction over the operation of the wastewater collection and treatment systems, industrial pretreatment, and contract
and bid awards for the District’s conveyance, storage and treatment projects.
Operations
The District is the largest wastewater treatment system under private operations in the United States. In early 1998, the
District approved a ten-year agreement with United Water Services (UWS) for operating the District’s two water reclamation
facilities, bio-solids management, and field operations. The agreement with UWS saved District ratepayers more than $164
million over the term of the contract. On December 3, 2007, a second ten-year contract was executed with Veolia Water
Milwaukee (VWM) effective March 1, 2008. The VWM contract provides the District with the lowest cost option to maintain,
operate, and manage the District’s water reclamation facilities, collection, and conveyance system.

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
Cargil Meat Solutions
Chris Hansen Maple
Jonas Advanced Waste Hi-Mar
Gehl Guernesey Farms Inc.
Wisconsin Paperboard
Milwaukee Water Works
Patrick Cudahy
Malteurop North America
D.R. Diedrich & Co.
MillerCoors
Revenue Collected (in thousands)
Customer
Top Ten Sewer Users in 2014
Fundingthe OperatingBudget
District operating expenses are primarily recovered from District customers through a sewer service charge. T h e sewer service
charge is billed to each municipality within the District’s service area based on waste strength, flow volume, and the number of
connections. The Environmental Protection Agency (EPA) and Wisconsin Department of Natural Resources (DNR) have
approved the District’s user charge system. The following table shows a listing of the ten largest sewer users within the District’s
service area in 2013 by revenue collected.
Source: 2014Comprehensive Annual Financial Report

.M
20.M
40.M
60.M
80.M
100.M
120.M
140.M
160.M
180.M
1994 2014
TotalWasteloadVolumes
1994 to 2014 Changes in Volume of Wasteload Parameters
Billable Flow (1,000 gallons) Biochemical Oxygen Demand (Pounds) Total Suspended Solids (Pounds)
0%
10%
20%
30%
40%
50%
1994 2014
%ofTotalWasteloadVolume
1994 to 2014 Percent Change in Type of Wasteload
Contribution
Residential Non-certified Commercial Certified Industrial Certified Commercial
Wasteloadsandthe CustomerBase
The District calculates user charges based on four billing parameters: flow ($/1,000 gallons), biochemical oxygen demand
(BOD lbs.), total suspended solids (TSS lbs.), and connections to the sewer system. Since 1994, the District has seen an overall
drop in the volume of flow, TSS, and BOD. According to the 2014 Comprehensive Annual Financial Report (CAFR), from 1994 to
2014, the wasteload parameters show a 26 percent decline in flow, a 28 percent decline in BOD, and a 24 percent decline in TSS
among all customers.
Source: 2014 Comprehensive Annual Financial Report
The billing parameters for each of the four customer classes: residential, industrial, commercial and non-certified, has continued to
decline over the last two decades. However, among all categories of customers, the sharpest decline in wasteloads has been from
industrial customers.
The proportionate contribution from each of the categories of customers has changed over the last two decades. The contribution
of residential and non-certified commercial has increased whereas industrial and certified commercial wasteload contribution has
diminished. As seen in the chart below, in 2014, only 24 percent of the total wasteload was contributed by industrial customers,
down from 31 percent in 1994. This decrease is attributable not only to a decline in the number of wet industries in the
Milwaukee area, but also to water conservation efforts by all categories of users.

$.M $100.M $200.M $300.M $400.M
Forest County Potawatomi Community
Marcus Corp./Milw. City Center/Pfister
Metropolitan Associates
Wal-Mart/Sam's Club
Mandel Group
BRE Southridge Mall LLC
US Bank Corp.
Northwestern Mutual Life Insurance Co.
Bayshore Town Center LLC
Mayfair Property Inc.
Equalized Value
2014 Top Ten Tax Payers for Milwaukee County
$-
$0.50
$1.00
$1.50
$2.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tax Rate per $1,000 Equalized Value
Fundingthe CapitalBudget
The District finances its capital budget through an ad valorem tax upon the taxable property within the District’s boundary. In
addition to debt service, the tax levy primarily funds acquisition and improvement of land, property or facilities to enhance
sewerage services to the District’s service area.
In general, a tax levy requires a two-thirds vote of all District Commissioners and is uniformly levied based on equalized value.
The following chart shows tax rate per $1,000 equalized property values from 2004 to 2014
If resolutions authorizing full funding of the local share of the District’s Capital Budget are not adopted by the Commission by
October 15 of any year, then the Commission may, by simple majority, raise up to $40 million by direct tax levy in addition to any
amount required to meet the District’s general obligation indebtedness.
Wisconsin statutes authorize the District to finance capital improvements through the issuance of debt including general
obligation bonds or notes, bond anticipation notes, and revenue anticipation notes. Issuance of bonds and notes requires a vote
of two-thirds of all Commissioners. However, a vote of three-fourths of all Commissioners is required for emergency borrowing.

DistrictPerformance
In order to ensure the District is meeting its mission
to cost-effectively protect the quality of the region’s
water resources, the District measures and monitors
its performance in the percent of wastewater that is
captured and treated. The percent capture measures
how much wastewater the District captures and treats
by year, versus the amount that the District releases
from its sewers to area waterways untreated during
heavy rain storms to prevent basement backups. The
table to the right shows the District’s past
performance in capturing and treating wastewater.
In2014, the Districtcapturedand
treated99.5%of wastewater
before returningitto the waterways.
Year
Percent captured
and treated
2014 99.50%
2013 98.50%
2012 99.90%
2011 99.50%
2010 96.20%
2009 98.30%
2008 95.10%
2007 99.20%
2006 99.70%
2005 99.70%

OtherStatisticalInformation
The District annually evaluates local and national economic trends including price indices, property values, unemployment
rates, personal income, and industrial growth rates. The economic trends help the District determine what a feasible user
charge rate is for its customers and in turn, future revenue and expenditures.
Price Indices
ConsumerPriceIndex
The District uses price indices to establish or
benchmark annual contractual rate increases for
some multi-year contracts. The Consumer Price
Index (CPI), measures the change in the cost of a
bundle of goods and services paid by consumers.
In 2014, the national CPI increased 1.6 percent
over 2013, and in Milwaukee CPI increased 1.2
percent. National CPI for the first half of 2015 is -0.2 percent. The Milwaukee - Racine CPI for the first half of 2015 is -0.7
percent. Both the national and the state economy show signs of improvement through improved consumer spending, a
recovering housing sector, and healthy exports growth. Global Insight expects the CPI to remain nearly flat in 2015, before
increasing at a 2.3 percent pace in 2016 and 2.4 percent in 2017.
ConstructionCostIndexandBuildingCostIndex
The District also uses construction price
indices to plan its capital expenditures.
The Engineering News Record (ENR) is a
magazine that publishes cost data for 20
major U.S. cities. The Construction Cost
Index (CCI) and the Building Cost Index
(BCI) measure the change in construction
costs. Both indices have a materials and
labor component. The CCI can be used
where labor costs are in high proportion of total costs, whereas the BCI is useful for structures. The District uses the cost index
data for both the City of Chicago and the City of Minneapolis when forecasting its capital budget.
PropertyValues
Property values are one of the region’s most critical indicators of economic health. According to The PNC Financial Services
Group, Milwaukee has a stable and improving housing market and existing home prices are growing at a pace similar to the
national average at the end of the first half of 2015. Home values remain below the pre-recession levels, but are stabilizing.
Year US Milwaukee-Racine
2014-2015 (1st
half) -0.2% -0.7%
2013-2014 1.6% 1.2%
Source: United States Department of Labor, Bureau of Labor Statistics
Chicago Minneapolis Average
CCI BCI CCI BCI CCI
2014 5.84% 4.09% 8.28% 1.53% 2.71%
2013 0.34% 1.24% 0.67% 3.64% 3.87%
2012 2.77% 0.70% 5.10% 0.85% 3.80%

-6%
-1%
4%
9%
14%
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
%ChangeinEqualizedValue
TotalEqualizedValue(inmillions)
Equalized Value and Percent Change
District Non-Member District % Change Non-Member % Change
The District levies taxes on households based on equalized property values to fund its capital projects. Equalized values
are calculated annually to ensure statewide fairness and equity in distributions based on property values. In 2016, the
total equalized values in the District’s service area are estimated to increase approximately 0.74 percent for member
communities and increase 2.85 percent for non-member communities.
UnemploymentRate
Wisconsin’s slow economic recovery continues to
impact District constituents. The unemployment
rate in the Milwaukee-Waukesha-West Allis
metropolitan statistical area remains higher than
the state and national rate. The PNC Financial
Services Group projects a decrease in the
unemployment rate in both the US and the
Milwaukee area in 2016.
PersonalIncome
Personal income is the total income of all persons from all sources. The following table shows annual changes in personal income
for the United States, Wisconsin, and the Milwaukee Area.
According to the US Bureau of Economic Analysis,
earnings increased 1.3 percent in the first quarter of
2015. Global Insight expects personal income growth to
accelerate to 5.0 percent in 2016 and 5.7 percent in
2017.
Annual Unemployment Rate
Year US WI
Milwaukee-Waukesha-
West Allis MSA
2015 5.3% 4.4% 5.5%
2014 5.8% 5.6% 5.4%
2013 7.4% 6.8% 6.5%
Source: For national data: U.S. Bureau of Labor Statistics (June 2015). For Wisconsin and
Milwaukee-Waukesha-West Allis MSA data: U.S. Bureau of Labor Statistics (July 2015).
Personal Income Percent Change (Annual)
Year US WI
Milwaukee-Waukesha-West
Allis
2015 1.3%
2014 3.8% 3.1% 3.3%
2013 3.1% 2.7% 2.5%
Source: US Bureau of Economic Analysis.

Financial Planning
Just as strategic planning identifies objectives and strategies, financial planning identifies
financing scenarios and alternatives for the strategic programs and other action items. A
long-term forecast is prepared for both the Operations and Maintenance (O&M) and the
Capital Budgets.
The Budgeting Process
First, the Budget staff begin financial planning by developing preliminary scenarios for anticipated revenues and expenditures
and make a recommendation to the Executive Director regarding funds that will be available in the upcoming year for
expenditures funded through the O&M Budget. At the same time, projections of capital spending and new capital project
requests are identified by the requesting divisions. These capital expenditures are incorporated into a similar process to ensure
that priorities are identified and financial goals are achieved. Both the O&M and Capital budgets are analyzed over the
summer, and proposed budgets are developed for the Executive Director to present to the Commission for adoption.
Requested amendments to the proposed documents are reviewed and incorporated if the Commission approves them. The
budgets and tax levy are adopted in October or November. The user charges are adopted in November. The following
graphic depicts the District’s budget planning process and shows the linkage between strategic planning and financial
planning.
Jan-Mar Apr-June June-Aug Aug-Sept Oct-Nov
District mission
Statement
reviewed
District-wide
objectives and
strategies
reviewed and
revised, if
necessary
Division goals,
objectives,
strategies, and
performance
measures
updated to
reflect
organizational
changes in
strategies and
challenges
1
2
3
Division
Budget materials
distributed
4
Budget staff
meet with
Divisions to aid
in budget
preparation
Divisions submit
budget requests
to Budget staff
Budget staff
analyze budget
submissions from
Divisions
Are
budget
requests
complete
; issues
resolved?
Budget staff
develops
proposed O&M
and Capital
Budget
Budget staff
present proposed
budget to the
Executive Director
& Commissioners
O&M and Capital
Budgets and Tax
Levy adopted by
the Commission
meeting
Are
Executive
Director &
Commission
issues
addressed?
9
Yes
Yes
Budget presented
at public input
meetings
8
User Charge Rates
approved
5
6
7
No
No
11
12
13
14
10

Budget Review & Adoption Calendar
DATE TIME ACTIVITY
Tuesday,
April 28, 2015
11:00 a.m. Budget Kick-Off
Friday,
May 22, 2015
5:00 p.m. Budget Requests Due
Throughout May
and June
Staff analyze requests and begin to
develop long-range financing plan and
forecast
Monday,
June 22, 2015
9:00 a.m.
Capital and Operations & Maintenance
Budget update to Commission
Monday,
July 6, 2015
9:00 a.m.
Capital and Operations & Maintenance
Budget update to Commission
Friday,
September 4, 2015
9:00 a.m. Distribute Budget to Commissioners
Monday,
September 28, 2015
6:00 p.m. Public Hearing on Budgets
Monday,
October 5, 2015
5:00 p.m. Budget Amendments Due
Monday,
October 12, 2015
8:30 a.m. Public Hearing on Budgets
Monday,
October 26, 2015
8:30 a.m.
Commission Adopts Budgets
Tax Levy Adopted
To Be Determined 1:00 p.m. User Charge Ad Hoc Committee meets
Monday,
November 23, 2015
8:30 a.m. User Charge Billing Rates Set

The District’s Financial Performance
Credit rating agencies repeatedly award high ratings to the District. Such highly acclaimed financial performance is the result
of developing and adhering to financial policies geared toward ensuring the District’s continued financial strength. Each bond
rating agency has published guidelines and examples of sound financial practices normally associated with strong credit quality.
One example of such a list is the Standard and Poor’s Top 10 Management Characteristics. The table below demonstrates the
District’s achievement of these standards.
Top Ten Management Characteristics District Performance
1
An established rainy day/budget stabilization reserve.
The District maintains two reserve funds: the User Charge
Stabilization Fund and the Equipment Replacement Fund
2
Regular economic and revenue reviews to identify
shortfalls early.
Cost center managers review monthly variance reports
Quarterly variance reviews are prepared and discussed for
both the O&M and Capital Budgets
Quarterly financial statements are prepared and distributed
3
Prioritized spending plans and established
contingency plans for operating budgets.
Annual budget process prioritizes needs.
Annual operating contingency established through the
Unallocated Reserve.
4
A formalized capital improvement plan in order to
assess future infrastructure requirements.
Annual budget includes a six-year capital improvement
program, including a long-range financing plan.
5
Long-term planning for all liabilities of a government,
including pension obligations, other post-employment
benefits and other contingent obligations would be
optimal and allow for assessment of future budgetary
risks.
Financial statements are presented on the accrual basis of
accounting.
Expenses are recorded when liabilities are incurred.
Since 1993, the District has recorded and disclosed its
unfunded obligations for retiree health and life insurance.
6
A debt affordability model in place to evaluate future
debt profile.
The District’s intent is to keep outstanding debt to no more
than 2.5 percent of its equalized property value. The 2.5
percent limit is half of the amount allowed by Wisconsin Law.
No more than 15 percent of its outstanding general obligation
bonds are in variable rate form.
Advance refunding for economic savings is undertaken only
when net present value savings of at least two percent of
refunded debt can be achieved.
7
A pay-as-you-go financing strategy as part of the
operating and capital budget.
Capital Budget complies with a 25 percent cash financing
objective.
The District has never issued debt to fund its O&M
expenditures.
8
A multiyear financial plan in place that considers the
affordability of actions or plans before they are part
of the annual budget.
The Capital Budget includes a Long-Range Financing Plan.
Budget staff prepare a six-year forecast of revenues and
expenditures for internal decision making.
9
Effective management and information systems.
The District uses an integrated core financials management
system and other program-specific systems that capture and
report critical operating information.
10
A well-defined and coordinated economic
development strategy.
The District regularly communicates with member
communities and the top 20 industrial users regarding the
District’s financial decisions and the impact on District
customers.
The District’s user charge and tax rates are competitive on a
national basis.
The District fully supports its Small, Women-, and Minority
Owned Business Enterprise procurement policy.
The District provides and Workforce and Business
Development Resource Program.
The District uses a local workforce preference policy whenever
applicable.

District Fund Structure
The District prepares its financial statements and budgets on an enterprise fund basis. The District’s operating expenses are
funded within the Operations and Maintenance (O&M) Budget, and the long-term capital expenditures are funded within the
Capital Budget. The funding sources for the two budgets are different.
The District’s enterprise fund is used to account for operations that are 1) financed and operated in a manner similar to a
private business enterprise – where costs of providing public goods or services on a continuing basis are financed or recovered
primarily through user charges and cost recovery programs, and 2) for which the District relies on taxes, non-member billings,
federal and state aid, loans, and District-issued bonds which support the capital improvements program.
The District, in accordance with Generally Accepted Accounting Principles (GAAP), reports categories of net position that
indicates the accessibility of funds. As it does not use governmental funds, there is no fund balance as this term does not
apply to enterprise funds. The equity of full-accrual statements, as an enterprise fund, is referred to as net assets, or per GASB
63, Net Position.
The District’s net position consists of restricted and unrestricted balances. Restricted balances consist of constraints placed on
net position that are legally restricted by outside parties or by law through constitutional provisions or enabling legislation.
Unrestricted balances consist of net position that does not meet the definition of restricted or net investment in capital assets.
As of December 31, 2014, per the District’s most recent audited Comprehensive Annual Financial Report, the District has a total
net position for its enterprise fund of $2.6 billion. Of this amount:
• $2.5 billion is investment in capital assets net of accumulated depreciation and reduced by outstanding debt that is
attributable to the acquisition, construction, and improvement of those assets; debt related to the unspent proceeds or
other restricted cash and investments is excluded from the determination.
• $34.5 million is restricted for capital projects and programs (see capital budget for further explanation on capital programs);
• $25.5 million is restricted for debt service sinking funds, and
• $14.4 million is restricted for qualified equipment replacement and is required to be maintained by federal and state
regulatory agencies.
• ($4.4) million is in unrestricted. The negative amount for unrestricted is the result of the District electing to fund its long-
term liability related to post-retirement health and life insurance as it comes due rather than when it is incurred. The total
long-term liability related to this benefit was $41.9 million at December 31, 2014 with an unfunded actuarial accrued
liability of $178.6 million, amortized as a level dollar amount and over 20 years.
* Milorganite®
revenue is reported net of discounts, rebates, fees, discount, freight, etc.
** Net operating expenses are reported after charges to the capital budget have been subtracted.
Capital Expenditures
Water Reclamation Facilities
Conveyance System
Watercourse & Flood Management Projects
Facilities Planning and Other Projects
Net Debt Service
Operating Expenses
Net Division Expenses**
Net Fringe Benefit Expenses**
Capital Funding
Tax Levy
Non-Member Billings
State Loans
Federal and State Aid
Interest Income
District Issued General Obligation Bonds
Operating Funding
User Charges
Industrial Waste Pretreatment Program
Household Hazardous Waste Program
Milorganite
®
Sales (Net)*
Interest Income
Other Income
Enterprise Fund Accounting for Budgets
Operations & Maintenance Budget Capital Budget

Operations and Maintenance & Capital Budgeting
Item Operations and Maintenance Capital
Sources of Funds
User Charges, Net Revenue from
Milorganite
®
sales, Interest Income, Surplus
Applied, User Charge Stabilization Fund
Applied, and other operating income.
Tax Levy and Nonmember Billings, Loans and
Bonds, Federal and State Aid, Interest and
Other, Uses of Funds on Hand, and all other
capital income.
Use of Funds
Net Division Expenses and All Other
Operating Expenses.
Total Project Expenses and Net Debt Service.
Budgetary Basis of
Accounting
Actual revenues and expenses are recorded
on a full accrual basis in accordance with
Generally Accepted Accounting Principles.
Revenues and expenses are budgeted on a
full accrual basis, with the exception of
capital outlays. These are budgeted as an
expense in the year incurred, but
capitalized and depreciated for financial
reporting purposes.
For financial reporting, actual revenues and
expenses are recorded on a full accrual basis
in accordance with Generally Accepted
Accounting Principles. Revenues are
budgeted on a cash basis. Because the
Capital Budget serves as a financing plan, it
is important to plan when revenues are
received rather than when they are earned.
Basis for Expenses
Costs of controlling, operating, managing
or maintaining the sewerage system. Costs
also include replacement costs of
obtaining and installing equipment,
accessories or appurtenances that are
necessary during the service life of the
District’s sewerage system to maintain the
capacity and performance for which the
sewerage system was designed and
constructed.
Costs of acquiring, purchasing, adding to,
leasing, planning, designing, construction,
extending and improving all or any part of a
sewerage system and of paying principal,
interest or premiums on any indebtedness
incurred for these purposes.
Project Costs Less than $25,000 Greater than or equal to $25,000
Service Life Less than 10 years.
Ten or more years (must represent an
identifiable addition to facilities or extend the
service life of existing facilities).
Equipment
Replacement
Cost less than $25,000 or service life equal to
or less than 20 years.
Cost greater than or equal to $25,000 and a
service life greater than 20 years.
Green
Infrastructure
The District does not need a conservation
easement for the property on which the
project will be installed. The cost is less than
$25,000.
The District has a minimum 10-year
conservation easement on the property on
which the project will be installed. The cost is
greater than or equal to $25,000.

2016 Combined Summary of Revenues and Expenditures
(Dollars in Thousands)
2014 Actual
2015
Adopted
Budget
2015
Amended
Budget
2015
Estimate
2016
Proposed
Budget
Change from
2015 Adopted
Budget
% Change
from 2015
Adopted
Operations & Maintenance
User Charge Billings $67,852 $71,490 $71,490 $71,490 $73,280 $1,790 2.5%
Milorganite® Sales (Net) 7,993 7,775 7,775 7,895 7,830 55 0.7%
All Other Operating Income 3,161 3,718 3,718 3,718 3,289 (429) -11.5%
User Charge Stabilization Fund Applied (or
Contribution) (1,000) 1,000 1,000 1,000 1,000 0 0.0%
Equipment Replacement Fund Applied (or Contribution) 0 1,000 1,000 0 (300) (1,300) -130.0%
Surplus Applied 7,758 3,919 3,919 3,919 4,666 747 19.1%
Total Operations & Maintenance Funding 85,765 88,902 88,902 88,021 89,765 864 1.0%
Carryover Funds from previous year* 1,500 0 0 0 0 0 0.0%
Total Amended Operations & Maintenance Funding 87,265 88,902 88,902 88,021 89,765 864 1.0%
Capital
Tax Levy 91,222 93,639 93,639 93,639 95,980 2,341 2.5%
Non-member Billings 27,095 30,222 30,222 29,795 30,550 328 1.1%
Federal and State Aid 4,174 3,612 3,612 2,248 2,154 (1,458) -40.4%
State Loans 37,193 22,100 22,100 15,785 23,600 1,500 6.8%
Interest and Other Income 5,183 3,680 3,680 1,399 4,991 1,311 35.6%
District Bonds 0 100,000 100,000 100,000 0 (100,000) -100.0%
Bond Premium 0 0 0 7,449 0 0 0.0%
Use of (Additions to) Available Funds 20,538 (38,478) (38,478) (40,500) 58,990 97,468 -253.3%
Total Capital Funding 185,405 214,775 214,775 209,815 216,265 1,490 0.7%
Total Funding $272,670 $303,676 $303,676 $297,836 $306,030 $2,354 0.8%
Expenditures
Operations & Maintenance
Net Division Expenditures $74,930 $78,446 $78,594 $77,360 $78,955 $509 0.6%
Net Fringe Benefit Expenditures 8,105 8,288 8,288 7,628 8,701 413 5.0%
Unallocated Reserve 0 2,168 2,020 0 2,110 (59) -2.7%
Total Operations & Maintenance Expenditures $81,487 $88,902 $88,902 $84,989 $89,765 $864 1.0%
Capital
Water Reclamation Facilities 21,560 29,651 29,651 33,331 30,175 524 1.8%
Conveyance Facilities 20,221 13,997 13,997 11,961 10,615 (3,382) -24.2%
Watercourse & Flood Mgmt Projects 11,496 20,816 20,816 18,263 24,493 3,677 17.7%
Other Projects & Programs 14,792 28,950 28,950 24,790 24,288 (4,662) -16.1%
Debt Service 114,998 121,360 121,360 121,470 126,694 5,334 4.4%
Total Capital Expenditures 183,066 214,775 214,775 209,815 216,265 1,490 0.7%
Total Expenditures $264,553 $303,676 $303,676 $294,804 $306,030 $2,354 0.8%
*Actual and estimated expenditures from carryovers are included in the Division expenditures
Note, totals may not appear to add due to rounding.

$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Tax Levy &
Nonmember
Charges
All Other Income User Charge Billings State Loans Bonds Issued,
Federal & State Aid
2016 Combined Summary of Revenue
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Net Debt
Service
Net
Divisional
Expenditures
Water
Reclamation
Facilities
Watercourse
& Flood
Mgmt
Projects
Other
Projects &
Programs
Conveyance
Facilities
Net Fringe
Benefit
Expenditures
Unallocated
Reserve
2016 Combined Summary of Expenditures
The District’s 2016 combined budget totals approximately $306.0 million. As seen in the following chart, the primary
sources of funds in the 2016 combined budgets are the tax levy, non-member billings, State Clean Water Fund
program loans, and bonds.
On the expenditure side, the Capital Budget again comprises the majority of the 2016 combined budget with net debt service,
water reclamation facilities, conveyance, watercourse and flood management, and other projects project expenditures totaling
70.1 percent. The net divisional expenditures, which include operations of the District facilities, are 26.3 percent of the
combined expenditures.

P A R T N E R S F O R A
C L E A N E R E N V I R O N M E N T
MILWAUKEE
METROPOLITAN
SEWERAGEDISTRICT
2 0 1 6 — 2 0 1 8 S T R A T E G I C
P L A N
The Milwaukee Metropolitan Sewerage District’s 2016-2018 Strategic Plan
creates a CLEAR path to cleaner waters. The continuous improvement methods
and tools included in the 2016-2018 CLEAR plan help position the District to
meet any future challenges and opportunities, stay true to the 2035 Vision, and
provide customers with an innovative environmental and economic leader in
the region. Furthermore, it ensures that the District is prepared to enhance the
quality of life in the region and protect our water resources for years to come.
The Milwaukee Metropolitan Sewerage District (MMSD or the District) is recognized
internationally as a leader in the municipal sewerage industry because of the District’s
commitment to protecting local watersheds as well as the District’s innovative
solutions to storm water management. The District has earned its reputation through
effective planning, construction and operation of the District’s systems. Beginning
with the creation of Milorganite® in 1926, continuing through to MMSD’s current
Green Infrastructure initiative FreshCoast 740, MMSD continues to lead the industry
in the development and implementation of innovative watershed protections. The
District’s success in the technical abilities to control flooding and treat wastewater,
coupled with the Milwaukee region’s commitment to becoming an international hub
for water technology, provides a unique opportunity to be a tremendous asset to the
communities the District serves.
MMSD will build on our technical expertise to continue to achieve permit compliance
through our 2050 Facilities Plan. We recognize that above all else, the continued
planning, construction and operation of our systems ensures compliance with our
WPDES permit and remains the District’s most important function.
The following Strategic Plan, which includes reporting for current planning efforts like
the 2050 Facilities Plan, will provide a CLEAR path for MMSD. Completion of the
action steps included in the CLEAR plan will ensure permit compliance, enhance the
District’s efficiencies and increase the beneficial services the District offers to the
region. Additionally, the CLEAR plan allows MMSD to report on the strides made
towards achieving our 2035 Vision of a healthier region and a cleaner Lake Michigan.

M I S S I O N
T O C O S T
E F F E C T I V E L Y
P R O T E C T T H E
R E G I O N ’ S
W A T E R
R E S O U R C E S .
M I S S I O N & V I S I O N
This mission guides the core activities at the District,
specifically water reclamation and flood management.
The District operates two water reclamation facilities
through a private contract operator that serve 411
square miles and 1.1 million people in 28 communities.
Additionally, the District manages several programs
designed to mitigate local waterway pollution and
improve water quality such as the Industrial Waste
Pretreatment Program and the Household Hazardous
Waste Collection Program. The District routinely
collects data and monitors its activities to ensure
efficient, sustainable operations. As a steward of public
funds and a major player in ensuring the health of the
area’s waterways, the District values accountability and
uses the objectives laid out in the Strategic Plan to
direct individual and division activities.
MMSD envisions a healthier Milwaukee region and a cleaner Lake Michigan
accomplished through its leadership in attaining zero overflows, zero basement
backups, and improved storm water management. MMSD will be a model in its
management of climate change impacts on wet weather and its focus on energy
efficient and sustainable operations.
The 2035 Vision, adopted in 2010, has two elements: integrated water-shed management and
climate change adaptation with an emphasis on energy efficiency. Using the guiding principles of
the sustainable bottom line and water quality leadership and collaboration, the District has set
forth this vision:
The 2035 Vision contains strategic goals and objectives. The goals focus on using green
infrastructure, reducing the District’s carbon footprint by 90 percent from its 2005 baseline, and
working with local organizations, nonprofits, and universities to further water industry knowledge
and environmental stewardship. The 2016-2018 Strategic Plan helps direct District efforts to
accomplish the 2035 Vision and builds a foundation for future efforts to meet the organization’s
mission.

Economic Development
The Milwaukee region is experiencing a renaissance of its industrial heritage. With numerous initiatives underway
to attract wet industries, emerging companies in water and energy technologies, food and beverage clusters and
green infrastructure, the Milwaukee Area is a vastly changing landscape at a dizzying pace. For the work to
continue, it is imperative that the region continues to develop a skilled and knowledgeable workforce, a thriving
entrepreneurial ecosystem, engaged community and high quality infrastructure. Beyond the infrastructure we build
and maintain to protect the regions water resources, the District holds a unique role in the region’s economic
development through our SWMBE and WDTP programs and the support of M7’s regional economic development
plan. The 2016-2018 Strategic Plan includes the evaluation of our current programs, helps create channels to
engage business leaders, emerging companies, and the skilled workers required for the region to meet its goals.
Goals
Be proactive in providing Milwaukee-area economic development leaders information that helps to support
economic growth and development
Ensure the local workforce is trained to implement future District Capital Improvements Projects.
Using the acronym CLEAR, which stands for Collaborative, Lean and Efficient, Accountable, and Resilient,
the 2016-2018 Strategic Plan will continue the District on the path towards achieving the 2035 Vision. The
new CLEAR plan will ensure the District is true to its mission and help highlight MMSD as an industry
leader.
Outreach
The District is a multi-faceted organization, with many operations, programs, services, and goals. Together,
these facets of the organization combine to support one common goal: to improve water quality and protect
Lake Michigan. The District relies heavily on community members to accomplish our overarching goal, making
the community outreach an essential function. Moving forward, it is imperative that the District help the
communities we serve understand the challenges our waterways face and the District’s role in addressing those
challenges.
Goals
Develop clear and consistent messages
Identify target audiences and best practices for engagement
Evaluate and incorporate feedback from outreach activities
Collaborative
Mobilizing significant regional resources requires effective partnerships.
Improving valued relationships with government agencies and the
academic universities and partnering with businesses and community
organizations to facilitate the achievement of District objectives and
addressing local needs is a critical strategy. The District will focus its
efforts on building a unified understanding of the District’s mission,
creating visibility, and developing partnerships. The collaboration strategy
is intended to ensure the region is building relationships with its partners,
providing timely and accurate information to constituents, maintaining a
clear and consistent message, and increasing awareness and visibility of
who we are, what we do, and how it benefits the region as a whole.

Systems Thinking
Systems thinking is a key tenet of lean government. It is a holistic approach to analysis that focuses on
interrelationships, systems over time, and evaluating and incorporating feedback. The District can use systems
thinking for two critical areas of its operations: Information Technology and Milorganite® sales.
Information Technology
Systems thinking will benefit information technology strategies as the relationship with users and the rapid pace of
technology changes could become a harmonious one. MMSD relies on the use of information technology in every
aspect of its operations. This heavy reliance on so expensive of an infrastructure and on such a changing realm
equates to meticulous planning and forward thinking. As the scope of District functions have expanded from simple
water reclamation to include new environmental initiatives, so too have the IT systems been asked to expand to
support these new functions. The District now creates new data at a fast pace which places strain on our server
storage space and outages and security pose new threats. Every day new opportunities arise with advanced software
solutions on the market but with these come a myriad of issues including ongoing maintenance, costly upgrades,
and permissions barriers. Prospects must be carefully scrutinized and weighed to ensure adequate staff, funds, and
storage space are available to support both current existing software and any new additions. The 2016-2018
Strategic Plan includes the evaluation of life cycle software management, a multi-year plan to address software and
hardware capabilities and needs, and the development of policies and procedures. All of these will aid in ensuring
the District has a sustainable and forward thinking IT department it can depend on.
Goals
Develop a procedure that addresses each aspect of a new acquisition and prioritizes with user needs and budget
constraints
Create a strategy for current and future storage allocation to address handling growing data sets
Create a procedure and schedule for the total life cycle management of software and hardware within the District
Evaluate and develop plan for end user equipment and hardware
Lean government strives for continuous improvement and reducing waste. As a
governmental agency, MMSD prides itself on providing the most efficient service
possible to the communities we serve. In order to be good stewards, the District
is constantly looking for innovative solutions to provide efficient, value-added
services at the lowest cost possible. We continuously examine what, why and
how we work as a way to reduce waste and unnecessary procedures. As part of
the Strategic Plan the District will launch initiatives to document processes,
reduce redundancies and enhance operating and maintenance cost offsets
provided by Milorganite®
. Ultimately, our lean and efficient strategy will ensure
the District remains an industry leader both in effective services and financial
stability.
Lean &
Efficient

Milorganite®
Systems thinking will benefit Milorganite® sales as understanding trends over time, customer feedback and
relationships, and evolving distribution channels are critical to maintaining and improving sales strategy and
performance. Milorganite® sales has a significant impact on the District’s ability to minimize user charge billings, so
effective strategy is essential. MMSD has always been lauded for its ability to turn challenges into opportunities.
One such instance is the production of the fertilizer Milorganite® from the microscopic organisms that clean
wastewater. Since its development in the 1920s MMSD stood out as a leader in sustainability by reusing these
microbes instead of landfilling them. For 85 years the District has relied upon the revenue gained from the sale of
Milorganite® to aid in keeping our user charges rates low. The impact of Milorganite® sales is significant to the
District’s O&M Budget. As a niche in a commodity market, effective strategy is important. There are many
opportunities for growth in the sale of the product and through the initiatives in the 2016-2018 Strategic Plan the
District plans to capitalize on these opportunities.
Goals
Expand in current markets and break into new ones
Create communications plan that strategizes the message
Ensure the District is proactive and ready for any regulatory issues regarding Milorganite®
Explore all avenues available and the potential outcomes of each regarding to changes in product specifications
Lean &
Efficient

Reporting Streamlining
The District aims to understand the real needs of its stakeholders and customers in order to eliminate non-value-
added activities, and better deploy human and financial resources to higher-priority activities. The District’s goal is
to review and right-size the number of reports it generates and presents each year. As part of the lean and
efficient strategy, the District will work to streamline the required reports, ensuring compliance with administrative
requirements and reducing the redundancies in information and resources.
Goals
Publish meaningful and useful reports and information
Process Improvements
The District is at the pinnacle of change as a significant portion of its workforce has begun to retire. This creates an
opportunity to review organizational processes and seek efficiencies. Identifying redundancies, inefficiencies or
obstacles, and using problem solving techniques and data based decision making will be essential as we move
forward.
Capital Budgeting Estimating
Each year the Budget Office staff and the Technical Services Division staff review new and existing capital projects.
Requests are prioritized and adjustments made to balance infrastructure needs with debt obligations and tax rates.
The more accurate the budget requests are to actual expenditures the more accurate future financial plans can be.
The District’s efforts in past financial planning have helped the District remain on solid financial footing through
times of economic uncertainty. In order to continue to meet the District’s goals, the District will rely on sound
financial planning to ensure that the District continues to enjoy high debt ratings and has the resources necessary
to build the infrastructure required for efficient operations. The initiative will evaluate whether there are
opportunities to improve this process.
Goals
Efficiently allocate resources and prioritize projects
Lean &
Efficient

Accountable
Open Data
The District constantly generates a vast amount of data. More and more governmental entities are providing “open
data” or publicly available data structured in a way that enables the data to be fully discoverable and usable by end
users. This shift to a more transparent government has risen to a level that impacts all branches from federal to local.
Recognizing the growing trend in information sharing and the potential for the District to be more transparent and
accountable, the 2016-2018 Strategic Plan includes a review of the potential for the District to provide more data
resources to the public. Our goal in reviewing open data policies and trends is to identify useful information and
determine cost effective methods in providing the data to the public.
Goals
Improve accountability and transparency District-wide, as possible
Performance Metrics
Performance reporting helps the District stay focused on the quality of services and the benefits those services
provide to the region. Monitoring and measuring performance also improves management practices and the
public’s confidence in the District’s ability to achieve high quality program and operating results. For the past
several years, the District has maintained a performance dashboard on the intranet, which includes program
performance, strategic goals, objectives, and progress towards meeting those goals, and division director annual
accountabilities and performance. With this Strategic Plan process, an improved performance management
system that encompasses District planning and core processes will be created. Going forward, instead of
including information in the dashboard because someone thought it might be interesting, the District aims to first
ask, “Will the information drive productive action?”
Goals
Meaningful and timely information from which to extract trends and improve performance

Resilient
Workforce
There are many internal and external challenges facing public sector employers including: increasing and changing
needs for services from the public; new and changing technology; an aging workforce; significant limits on financial
resources; new and changing job skills and knowledge requirements; and greater demands for accountability and
transparency. A high-performing, committed and engaged workforce has a direct positive impact on the quality of
services delivered and the perception of public trust towards public service. Focused investment in our employees
will help ensure the effective, efficient, and high quality delivery of services and programs to the public. With
changing workforce demographics, it is imperative that the District stay current and flexible in its workforce policies
to attract and retain the best and the brightest. Over 30 percent of District employees are eligible for retirement in
the next three years. As such, the District must be prepared to fill the positions and continue to deliver high quality
services.
Goals
Attract and retain high-quality employees
Foster seamless turnovers and transitions
Promote District values
Budgets
The District prides itself on strong and prudent financial management. Currently the District develops long-range
financial plans for both its capital and O&M budgets. The current capital long-range plan is based primarily on
the District’s 2020 Facilities Plan. As the 2050 Facilities Plan is developed, the District will need to put forth a
financing plan that captures new requirements plus affordability. The current O&M forecast is limited by the term
of the Veolia Water (VW) Milwaukee operating contract, which is over fifty percent of expenditures. As the VW
contract expires in 2018, the District needs to prepare strategies to address new expenditure needs for a new
decade.
Goals
Structural budget balance for 2018-2028
Continue achievement of District’s Long Range Financing Plan goals while incorporating 2050
recommendations
Minimize user charge billings and levy volatility

2016 Operations & Maintenance Budget
The Operations & Maintenance (O&M) Budget provides a framework to implement and accomplish District priorities that
support its mission of environmental stewardship and sustainability. The majority of the Operations & Maintenance Budget is
targeted towards operations of wastewater reclamation facilities and controlling point and non-point sources of pollution.
This budget enables the District to continue its high standard of performance in protecting water resources at levels higher
than permit requirements.
REVENUES
In the 2016 Proposed O&M Budget, the District
anticipates $84.4 million in sources of funds. This
includes user charge billings, net revenue from
Milorganite
®
fertilizer sales, interest and other
income, two cost recovery programs, the return of
a 2014 surplus, and the use of reserves. The
primary source of revenue for O&M expenditures is
the user charge billings. In 2016, user charge
billings are budgeted at $73.3 million, a 2.5 percent
increase from the 2015 budget.
In the 2016 O&M Budget, total revenue increased
$863,675 or 1.0 percent from the 2015 budget.
For additional information on the District’s
revenues and reserves, refer to the Sources of
Funds section.
EXPENDITURES
A majority of the District’s expenditures are related to
the Veolia Water Milwaukee (VWM) contract for
operations and maintenance of District water
reclamation facilities and conveyance system. The
VWM operations and maintenance fee comprises
approximately 49.5 percent of the 2016 Proposed
O&M Budget. In addition to the contract cost, the
District is also responsible for 75 percent of all energy
costs under this contract. Combined with the utility
fee paid to VWM, energy expenditures are
approximately 13.7 percent of the O&M Budget.
For further detail on the division’s expenditures, refer
to the division and Other Expenditures sections.

Capital Expenditures Impact on the Operating Budget
The District undertakes life-cycle costing in the analysis of capital projects. This includes identifying, when possible, what the
change in O&M costs will be following the completion of each capital project, and carefully considering those costs in
deciding which projects move forward in the Capital Improvement Program (CIP). These analyses are useful not only for
decision-making to select the lowest life-cycle cost option among competing alternatives, but also for properly forecasting
expenditure changes to be included in future O&M budgets.
The majority of the District’s CIP is focused on the replacement, rehabilitation or improvement of existing water reclamation
and conveyance infrastructure rather than the construction of new facilities to expand capacity. As such, it is often the case
that replacements do not result in changes from the current level of budgeted O&M expenditures. In project summaries, the
O&M impact will be stated as “no significant impact”.
When the District CIP undertakes new initiatives or new technologies, it is more likely to result in new O&M expenditures or
incremental changes to ongoing O&M expenditures. In CIP project summaries, the O&M impact section will describe the
changed condition, start date, and annual budget impact.
In addition, the District’s capital budget includes capital programs which support the District’s capital infrastructure and
mission through improvements to municipal or privately owned infrastructure. In such cases, the District’s capital expenditures
would generally not result in changes to the current level of O&M expenditures as the resulting improvements are not
operated or maintained by the District but instead help to preserve the capacity and long-term cost-effective operation of the
District’s System.
O&M expenditures resulting from the completion of capital projects may be budgeted in expenditures for the Veolia Water
Milwaukee contract or in District division budgets.
Guide to the 2016 O&M Budget
Concluding the O&M Summary are a series of charts and graphs providing an overview of the 2016 O&M Budget’s
organizational structure and staffing levels, District revenues and expenditures, and division and cost center expenditures.
The Sources of Funds section discusses each of the District’s O&M revenues. The Budget describes each revenue source’s
historical data, changes in funding levels, and trends that affect the revenue source.
The Division Summaries discuss the District’s operating divisions: the Commission, the Office of the Executive Director; Legal
Services; Finance Division; Technical Services Division; Planning, Research, & Sustainability Division; Water Quality Protection
Division; and the Division of Community Outreach and Business Engagement. These summaries provide the detail of the
division’s structure, mission and services, budgeted expenditures, and staffing levels. Any recent accomplishments by the
division are also included.
The final section, Other Expenditures, provides detailed information about the District’s Fringe Benefits, Division Expense
Adjustments, and the Unallocated Reserve.

Commission
Legal Services
Records
Management
Technical Services
Engineering
Services
Capital Program
Support
Office of Contract
Compliance
Planning, Research, and
Sustainability
Water Quality
Protection
Central Laboratory
Industrial Waste,
Freshwater Resources &
Conveyance
System Monitoring
Finance
Community Outreach &
Business Engagement
Graphics
Marketing &
Milorganite®
Procurement &
Supplier
Development
Office of the Executive Director
Executive Director
Cost Center
Information
Technology Services
Human Resources
Facilities
Management
Milwaukee Metropolitan Sewerage District Organizational Chart
Public Information,
Intergovernmental
Affairs, and
Educational
Outreach
27

Summary of Authorized Staffing by Division
Divisions 2014 Budget 2015 Budget
2016
Budget
Change from
2015
Commission 0 0 0 0
Office of the Executive Director 5 5 2 (3)
Human Resources 4 4 4 0
Information Technology Services 20 20 20 0
Facilities 0 4 3 (1)
Executive Director 29 33 29 (4)
Legal Services 8 8 8 0
Records 0 4 4 0
Legal Services 8 12 12 0
Finance 16 17 19 2
Finance 16 17 19 2
Office of Contract Compliance 8 8 8 0
Capital Program Support 13 14 42 28
Engineering Services 47 47 22 (25)
Technical Services 68 69 72 3
Planning, Research & Sustainability 18 19 19 0
Planning, Research & Sustainability 18 19 19 0
Industrial Waste & Conveyance Monitoring 40 40 38 (2)
Central Laboratory 22 22 22 0
Water Quality Protection 62 62 60 (2)
Marketing and Milorganite 7 7 6 (1)
Graphics 3 2 2 0
Facilities 4 0 0 0
Procurement & Supplier Development 9 9 8 (1)
Public Information, Intergovernmental Affairs, and Educational
Outreach 0 0 5 5
Records 4 0 0 0
Community Outreach & Business Engagement 27 18 21 3
Total District 228 230 232 2
Total Management 44 44 44 0
Total Non-Represented 78 82 87 5
Total Represented (Bargaining Unit) 106 104 101 (3)
Total District 228 230 232 2
Note: Commissioners are not included in this table
The District’s current workforce consists of two broad categories of employees: represented, and management and non-
represented. All new positions and vacancies are analyzed to ensure need and manage staffing levels.
28

There is a net increase of two position authorizations in the 2016 Budget from the 2015 Budget.
Position Changes
To help streamline and coordinate the District’s outreach efforts, three employees moved from the Office of the
Executive Director to the Public Information, Intergovernmental Affairs, and Educational Outreach cost center.
The Facilities cost center eliminated one vacant Facilities Lead position.
In mid-2015, the real estate functions previously budgeted in the Capital Program Support cost center moved to the
Finance division. The Finance Division increased by three positions, one Real Estate Specialist, one new position, Real
Estate Generalist, and one Secretary. To offset the increase in position count, the Division eliminated one vacant
Account Clerk position.
The Office of Contract Compliance eliminated one vacant Contract Compliance Administrator – Limited Term
Employee position. The cost center also added one authorized but unfunded MCRR Project Engineer position.
The Capital Program Support cost center added one new Computer Aided Design (CAD) Technician, one new Data
Coordinator position, and authorized but unfunded one new Project Engineer position. As part of a District
reorganization, the field staff who work on construction and survey projects is budgeted under the Capital Program
Support cost center rather than the Engineering Services cost center.
The Engineering Services cost center added one new Senior Project Manager II – Limited Term Employee position.
The cost center also added one authorized but unfunded Project Engineer position.
The Planning, Research and Sustainability Division funded one previously authorized but unfunded Asset
Management Analyst position.
The Administrative Coordinator - Water Quality Protection/Planning, Research, and Sustainability position authorized
and funded in the Industrial Waste, Freshwater Resources, and Conveyance Monitoring cost center is funded in the
Planning, Research and Sustainability cost center in the 2016 budget.
The Industrial Waste, Freshwater Resources, and Conveyance Monitoring cost center eliminated one vacant Sample
Boat Operator position.
The Marketing and Milorganite cost center eliminated one vacant Shipping Clerk position.
The Procurement and Supplier Development cost center eliminated one Administrative Coordinator – Procurement
position and one Buyer/Data Clerk position. The cost center created a second Procurement Specialist position. The
cost center also authorized but unfunded one Procurement and Supplier Development Manager position.
The Educational Outreach Program Coordinator position was retitled Outreach Program Coordinator and moved
from the Planning, Research and Sustainability Division to the Public Information, Intergovernmental Affairs, and
Educational Outreach cost center.
The Public Information, Intergovernmental Affairs, and Educational Outreach cost center created a new Outreach
Program Coordinator in the 2016 budget.
29

Revenues and Expenditures
2014 Actual
2015 Adopted
Budget 2015 Estimate 2016 Budget
Change
from 2015
Adopted
Budget
% Change
from
2015
Adopted
Budget
Revenues
User Charge Billings $67,852,354 $71,489,982 $71,489,982 $73,280,017 $1,790,035 2.50%
Milorganite
®
Sales (Net) 7,993,267 7,775,000 7,894,811 7,830,000 55,000 0.7%
Interest Income 236,296 500,000 500,000 250,000 (250,000) -50.0%
Other Income 748,170 963,082 963,082 823,998 (139,084) -14.4%
Household Hazardous Waste 1,236,353 1,311,054 1,311,054 1,258,892 (52,162) -4.0%
Industrial Waste Pretreatment 940,205 943,810 943,810 956,290 12,479 1.3%
Total Operating Revenue 79,006,644 82,982,929 83,102,740 $84,399,197 1,416,268 1.7%
Reserves and Surplus
Equipment Replacement Fund
Applied (or Contribution) 0 1,000,000 0 (300,000) (1,300,000) -
User Charge Stabilization Fund
Applied (or Contribution) (1,000,000) 1,000,000 1,000,000 1,000,000 0 0.0%
Surplus or Deficit Applied 7,757,896 3,918,593 3,918,593 4,666,000 747,407 19.1%
Total Reserves and Surplus 6,757,896 5,918,593 5,918,593 5,366,000 (552,593) -9.3%
Total Funding $85,764,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0%
Carryover Funds from previous year 1,500,000
Total Amended Funding $87,264,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0%
Expenditures
Divisions
Commission 203,746 251,082 231,124 281,582 30,500 12.1%
Office of the Executive Director 6,022,468 7,004,889 6,882,035 5,927,429 (1,077,461) -15.4%
Legal Services 1,109,151 1,374,215 1,188,014 1,483,718 109,502 8.0%
Finance 1,800,134 1,811,939 1,803,268 2,686,432 874,493 48.3%
Technical Services 63,075,678 65,072,358 64,419,541 65,494,669 422,311 0.6%
Planning, Research & Sustainability 1,728,443 2,795,738 2,450,768 2,479,944 (315,794) -11.3%
Water Quality Protection 5,349,580 5,495,650 5,646,749 5,536,017 40,366 0.7%
Community Outreach &
Business Development 6,272,928 5,002,935 5,144,432 5,722,259 719,324 14.4%
Fringe Benefits 10,994,436 10,994,436 10,994,436 11,947,124 501,939 4.4%
Charges to Capital (14,297,348) (13,520,802) (13,771,850) (13,903,707) (382,905) 2.8%
Net Division Expenditures $83,035,193 $86,733,189 $84,988,518 $87,655,466 $922,277 1.1%
Unallocated Reserve 0 2,168,330 1,775,260 2,109,731 (58,599) -2.7%
Total Expenditures $83,035,193 $88,901,519 $86,763,778 $89,765,197 $863,675 1.0%
30

0.3%
1.2%
1.2%
2.7%
4.3%
6.0%
6.7%
10.0%
67.6%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Commission
Legal Services
Planning, Research & Sustainability
Finance
Water Quality Protection
Community Outreach and Business Engagement
Office of the Executive Director
Fringe Benefits
Technical Services
2016 Expenditures by Division
The District’s 2016 O&M Budget totals approximately $89.8 million. As seen in the following chart, user charge
billings comprise the majority of O&M revenues, followed by net Milorganite
®
sales, the surplus applied from 2014,
and other income. Additional details on the revenues by category may be found in the Sources of Funds section.
On the expenditure side, the Technical Services Division accounts for 68 percent of the 2016 O&M Budget. The
Technical Services Division includes the Veolia Water Milwaukee contract for operations and maintenance of the
District and reclamation facilities.
-0.3%
0.3%
0.9%
1.1%
1.1%
1.4%
5.2%
8.7%
81.6%
-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Applied
Interest Income
Other Income
Industrial Waste Pretreatment
User Charge Stabilization Fund Applied
Household Hazardous Waste
Surplus Applied
Milorganite® Sales (Net)
User Charge Billings
2016 Operating Revenue by Category

Operations and Maintenance Long-Range Forecast
The O&M forecast projects a 2.5 percent increase in User Charge Billings in 2017. The District’s operating contract with
Veolia Water Milwaukee expires in 2018. Because a decision on operations pursuant to this contract has not yet been
made, the District does not publish a forecast for 2018 and beyond.
2015 Budget 2015 Estimate 2016 Budget 2017 Forecast
Revenues
User Charge Billings $71,489,982 $71,489,982 $73,280,017 $75,105,985
Milorganite
®
Sales (Net) 7,775,000 7,894,811 7,830,000 7,830,000
Interest Income 500,000 500,000 250,000 252,500
Other Income 963,082 963,082 823,998 $955,000
Household Hazardous Waste 1,311,054 1,311,054 1,258,892 1,271,481
Industrial Waste Pretreatment 943,810 943,810 956,290 965,853
Total Operating Revenue 82,982,929 83,102,740 $84,399,197 $86,380,791
Reserves and Surplus
Applied (or Contribution) 1,000,000 0 (300,000) ($254,000)
User Charge Stabilization Fund
Applied (or Contribution) 1,000,000 1,000,000 1,000,000 2,358,285
Surplus or Deficit Applied 3,918,593 3,918,593 4,666,000 3,032,815
Total Reserves and Surplus 5,918,593 4,918,593 5,366,000 5,137,099
Total Funding $88,901,522 $88,021,333 $89,765,197 $91,517,891
Expenditures
Divisions
Commission 251,082 231,124 281,582 287,213
Office of the Executive Director 7,004,889 6,882,035 5,927,429 6,045,977
Legal Services 1,374,215 1,188,014 1,483,718 1,513,392
Finance 1,811,939 1,803,268 2,686,432 2,740,161
Technical Services 65,072,358 64,419,541 65,494,669 66,745,912
Planning, Research & Sustainability 2,795,738 2,450,768 2,479,944 2,529,543
Water Quality Protection 5,495,650 5,646,749 5,536,017 5,646,737
Community Outreach and Business Engagement 5,002,935 5,144,432 5,722,259 5,836,704
Fringe Benefits 11,445,185 10,994,436 11,947,124 12,365,274
Charges to Capital (13,520,802) (13,771,850) (13,903,707) ($13,987,491)
Net Division Expenditures $86,733,189 $84,988,518 $87,655,466 $89,723,422
Unallocated Reserve 2,168,330 0 2,109,731 1,794,468
Total Expenditures $88,901,519 $84,988,518 $89,765,197 $91,517,891

Sources of Funds
In 2016, the District’s estimated revenue is $89.7 million compared to the 2015 budgeted level of $88.9 million. The
$863,675 increase represents a 1.0 percent increase from the 2015 budget.
The District’s primary source of funds is user charge billings. The District also has other sources of funds for the O&M Budget:
- Net sales of Milorganite
®
fertilizer
- Interest Income
- Other Income
- Cost recovery programs: Household Hazardous Waste and Industrial Waste Pretreatment Program
- Reserves
- Prior year’s surplus
Each source of funds is further explained in the following pages. The table below presents a summary of the sources of
funds the District expects in the 2016 O&M Budget.
2016 Funding Summary
Revenues 2014 Actual
2015
Adopted
Budget
2015
Estimate
2016
Proposed
Budget
Change
from 2015
Budget
% Change
from 2015
Budget
Milorganite
®
Sales (Net) 7,993,267 7,775,000 7,894,811 7,830,000 55,000 0.7%
Interest Income 236,296 500,000 500,000 250,000 (250,000) -50.0%
Other Income 748,170 963,082 963,082 823,998 (139,084) -14.4%
Household Hazardous Waste 1,236,353 1,311,054 1,311,054 1,258,892 (52,162) -4.0%
Industrial Waste Pretreatment 940,205 943,810 943,810 956,290 12,479 1.3%
Total Operating Revenues $79,006,644 $82,982,929 $83,102,740 $84,399,197 $1,416,268 1.7%
Equipment Replacement Fund 0 1,000,000 0 (300,000) (1,300,000) -130.0%
User Charge Stabilization Fund (1,000,000) 1,000,000 1,000,000 1,000,000 0 0.0%
Surplus or Deficit Applied 7,757,896 3,918,593 3,918,593 4,666,000 747,407 19.1%
Carryover Funds from previous year 1,500,000 0 0 0 0 0.0%
Total Reserves and Surplus $8,257,896 $5,918,593 $4,918,593 $5,366,000 ($552,593) -9.3%
Total Funding $87,264,540 $88,901,522 $88,021,333 $89,765,197 $863,675 1.0%

Source of Funds 2014 Actual 2015 Budget 2015 Estimate
2016
Proposed
Budget
Change from
2015 Budget
% Change
From 2015
Budget
User charge billings are the primary source of revenue for the District’s operating budget. The District bills each of the 28
municipalities within its service area based on waste strength, quantity, and number of connections of its users. The
municipalities, in turn, directly bill their residential, commercial and industrial users. The municipalities are required to
settle with the District within 45 days from the date the municipality receives the wholesale bill from the District regardless
of collections. The District’s user charge system has been approved by the Environmental Protection Agency and the
Wisconsin Department of Natural Resources. Such approval is a condition for grants and loans from these agencies.
How Rates Are Set
Sewer user charge rates are developed annually as part of O&M Budget preparation. As the Executive Director’s proposed
O&M Budget is prepared, Finance staff determine proposed sewer user charge rates in accordance with District Rules and
Regulations as described in the Cost Recovery Procedures Manual. The user charge billing system allocates the total user
charge billings to users based on their usage of the conveyance system. This allocation is based on total wasteload
received and four billing parameters: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), billable flow, and
connections. Over the last two decades, there has been a significant decline in total wasteload, largely due to the loss of
industrial users and the increase in water conservation efforts by residential and industrial users.
An Ad Hoc User Charge Committee meets to review the proposed user charge rates and recommends rates for adoption by
the Commission. The District’s Commission approves an O&M Budget in October and user charge rates in November, to
be reflected in municipal billings for the following fiscal year, beginning in January.
In 2016, the District budget includes a 2.5 percent increase over the 2015 budgeted user charge billings.
$67.4M $67.9M
$71.5M
$73.3M
$75.1M
$50.M
$60.M
$70.M
$80.M
$90.M
2013 2014 2015 2016 2017
Budget Forecast
TotalRevenue
(inmillions)
2013 Actual - 2019 Forecast

25,000
30,000
35,000
40,000
45,000
50,000
55,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Budget
2015
Estimate
2016
Budget
Tons
Production and Sales Tonnage
Production (tons) Sales (tons)
Milorganite®
Sales (Net)
2016
Proposed
Budget
Change from
2014 Budget
% Change
From 2015
Budget
Milorganite ® Sales $7,993,267 $7,775,000 $7,894,811 $7,830,000 $55,000 0.7%
Milorganite
®
is a premier organic fertilizer on the market offering a line of all-natural,
pesticide-free products. Milorganite
®
production is currently the most cost-effective solution
for disposal of biosolids from the wastewater treatment process at the Jones Island and
South Shore Water Reclamation Facilities. The Milorganite
®
market consists of a professional
class of customers, including golf courses around the country, and a retail class of
customers, including popular “big box” and warehouse stores that sell to homeowners and
gardeners. To address the needs of each market, Milorganite
®
fertilizer comes in several
particle size formulations, including Greens Grade and Classic, and is sold in a variety of
packaging sizes to accommodate the needs of both professional golf courses and residential
gardeners.
In 2016, the budgeted net Milorganite
®
revenue is $7.83 million, and budgeted at the fiscal
2015 level. In 2016, the budgeted weighted-average net sales price per ton including donations, discounts, and agriculture
application is $198.64, a decrease from $217.58 in the 2015 Budget. The actual average sale price may be higher or lower
than the budgeted price depending on actual product sales. Sales in 2016 are estimated to be approximately 39,418, with
10,150 tons assumed for donations and agriculture land application tons. The following chart provides a historical
perspective of production and sales tonnage of Milorganite
®
.
To dispose of product that does not meet specifications, or when the District has excess product, the District has entered
into agreement with several agricultural distributors to place product in non-competitive markets.

0
500
1,000
1,500
2,000
2,500
3,000
3,500
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Budget
2015
Estimate
2016
Budget
Actual
UnitsSold
Revenue(Thousands)
Rain Barrel Sales Program
Other Income
2016
Proposed
Budget
Change from
2015 Budget
% Change From
2015 Budget
Other Income $748,170 $963,082 $963,082 $823,998 ($139,084) -14.4%
Other Income is budgeted at approximately $823,998 in the 2016 Budget. This is a decrease of $139,084 from the 2015
budgeted level. Other Income includes the following sources of funds:
- District Lease revenue
- Contributions from VWM for Material Capital Repairs & Replacements
- Reimbursements from VWM for laboratory services
- Gain or Loss from sale of fixed assets
- Rain Barrel sales revenue
- Insurance premium refunds
- Claims and settlements
- Miscellaneous
LEASES The District is currently leasing eleven properties throughout the
service area. These lease agreements will generate approximately $344,000 in 2016, similar to the anticipated 2015 level.
MATERIAL CAPITAL REPAIRS & REPLACEMENTS Veolia Water Milwaukee contributes funding for certain purchases or repairs
to machinery and equipment in accordance with the operating contract. In 2016, the District estimates $513,000 in
contributions.
LAB SERVICES The Central Laboratory provides analytical services to Veolia Water Milwaukee. In the 2016 budget, this
revenue is estimated to be $107,434, similar to the anticipated 2015 level.
RAIN BARRELS Collecting rain with rain barrels is an environmentally friendly way of collecting rain water that would
otherwise end up in the District’s conveyance system during wet weather events, contributing to overflows and basement
backups. In 2016, the District expects the Rain Barrel program to generate close to $32,000 in barrel sales. The following
chart provides a historical perspective of this program and anticipated revenue in 2016.

2016 MMSD Budget

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