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<br />70
<br />Projected Operating Results and Debt Service Coverage. Livermore’s estimated
<br />projected operating results for the Sewer System for the fiscal years ending June 30, 2022 through
<br />June 30, 2026, are set forth below, reflecting certain significant assumptions concerning future
<br />events and circumstances. The financial forecast represents Livermore’s estimate of projected
<br />financial results based upon its judgment of the probable occurrence of future events. Certain
<br />assumptions underlying the forecast are set forth in part in the footnotes to the chart set forth
<br />below; in addition, the projections assume (i) an increase in sewer rate revenue due to
<br />preapproved rate increases for fiscal years 2021-22 through 2021-25, (ii) investment earnings are
<br />left flat at fiscal year 2020-21 level, and (iii) annual expense increases of 2.5% to 5%. The
<br />assumptions are material in the development of Livermore’s financial projections, and variations
<br />in the assumptions may produce substantially different financial results. Actual operating results
<br />achieved during the projection period may vary from those presented in the forecast and such
<br />variations may be material.
<br />
<br />Table 24
<br />Livermore Sewer System
<br />Summary of Projected Operating Results (1)
<br />Fiscal Year Ended June 30
<br />
<br /> 2021-22 2022-23 2023-24 2024-25 2025-26
<br />Gross Revenues (1)
<br />Charges for services $27,435,606 $28,828,564 $30,226,539 $31,710,114 $31,867,239
<br />Connection Fees (2) 2,082,000 2,016,000 2,009,000 2,009,000 2,009,000
<br />Interest Income 259,671 259,671 259,671 259,671 259,671
<br />Other Revenue 27,750 27,750 27,750 27,750 27,000
<br />Total Member Gross Revenues 29,805,027 31,131,985 32,522,960 34,006,535 34,162,910
<br />
<br />Maintenance & Operation Costs (1) (17,397,507) (17,617,124) (18,172,977) (18,748,036) (19,343,032)
<br />
<br />Member Net Revenues (1) 12,407,520 13,514,861 14,349,983 15,258,499 14,819,878
<br />
<br />
<br />Share of LAVWMA Debt Service*(3)
<br />Rehabilitation Project 898,555 826,491 826,539 826,856 826,795
<br />Expansion Project 1,156,381 1,063,639 1,063,702 1,064,109 1,064,031
<br />Total LAVWMA Debt Service 2,054,936 1,890,130 1,890,241 1,890,965 1,890,826
<br />
<br />LAVWMA Debt Service Coverage* 6.04x 7.15x 7.59x 8.07x 7.84x
<br />
<br />Net Revenues Available after
<br />Obligations/LAVWMA*
<br />$10,352,584 $11,624,731 $12,459,742 $13,367,534 $12,929,052
<br />
<br />* Preliminary; subject to change. Based on estimated current market conditions.
<br />(1) Per definition in Sewer Service Contract; Excludes depreciation and debt service. Includes Payments to LAVWMA for
<br />LAVWMA Maintenance and Operation Costs. See “SECURITY FOR THE 2021 BONDS.”
<br />(2) Livermore’s connection fee revenue projections are based on connection projections per Livermore’s General Plan and
<br />the most recent connection fee study.
<br />(3) Debt service shown on a fiscal year basis.
<br />Source: City of Livermore.
<br />
<br />Outstanding Long-Term Debt Obligations
<br />
<br />As of the date of this Official Statement, Livermore has no outstanding long-term debt
<br />obligations for its wastewater system.
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