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2.5. Projected Revenues
<br /> Table 2-12 shows the utility's projected revenues for both water and recycled water for the Study period. City staff
<br /> provided budgeted revenues for FY 2023 and FY 2024 (Column B and Q. Water and recycled water rate revenues
<br /> (Lines 2 and 8) are equal to the calculated rate revenues at current rates for FY 2023 and beyond.
<br /> Miscellaneous, non-rate revenues are considered other revenue(Lines 3 and 9) and are inflated using the
<br /> corresponding revenue escalation factor(Table 2-1). Interest income(Lines 4 and 10) is calculated based on the
<br /> reserve interest rate(Table 2-1, Line 4) and projected fund balances.
<br /> Table 2-12: Projected Revenue Summary
<br /> Line Revenue Summary Current FY 2024 FY 2025
<br /> 1 Water
<br /> 2 Rate Revenues $26,000,000 $26,918,811 $27,734,889 $28,578,405
<br /> 3 Other Revenues $2,383,041 $2,720,041 $1,021,041 $1,047,000
<br /> 4 Interest Income $275,000 $275,000 $84,406 $85,804
<br /> 5 Total-Water $28,658,041 $29,913,852 $28,840,336 $29,711,209
<br /> 6
<br /> 7 Recycled Water
<br /> 8 Rate Revenues $3,100,000 $3,255,500 $3,216,401 $3,256,700
<br /> 9 Other Revenues $930,330 $969,462 $987,962 $1,036,462
<br /> 10 Interest Income $0 $0 ($3,225) $20,085
<br /> 11 Total-Recycled Water $4,030,330 $4,224,962 $4,201,137 $4,313,248
<br /> 2.6. Estimated Purchased Water Costs
<br /> The City purchases most of its water supply from the Zone 7 Water Agency. The water utility's annual purchased
<br /> water cost includes an annual fixed charge and a variable rate per ccf of water. Zone 7 rates are set based on the
<br /> calendar year, so fined and variable rates for the FY are an average between the calendar year rates for July-
<br /> December and January-June of the following year.
<br /> Table 2-13 shows the purchased water cost calculations for the Study period. The City estimates 10% water loss for
<br /> the system (Line 1). Water demand (Line 19) is equal to the total water demand for all customers. The amount of
<br /> water produced (Line 20) is based on water demand accounting for water loss.
<br /> City staff provided current Zone 7 fixed and variable water costs for FY 2019 through FY 2023. These rates are
<br /> inflated for future years using the water escalation factor(Table 2-2, Line 5). Zone 7 water costs(Line 30) are
<br /> calculated by multiplying the water produced (Line 20) by the variable water cost(Line 12) plus the annual fixed
<br /> charge for each year(Line 7).
<br /> 20 CITY OF PLEASANTON
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