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factor for capital(Table 2-2, Line 7).The City expects to fully fund its water and recycled water capital program
<br /> using cash from rate revenues and reserves.
<br /> Table 2-17: Projected CIP
<br /> Line Capital Improvement Plan
<br /> 1 Water Replacement
<br /> 2 Emergency Power Improvements $0 $0 $0
<br /> 3 Water Capacity Evaluation $50,000 $56,250 $61,875
<br /> 4 Water System Management Plan $0 $0 $0
<br /> 5 Annual Water Distribution System Improvements $1,000,000 $1,125,000 $1,237,500
<br /> 6 SCADA and Controls Master Plan $0 $0 $0
<br /> 7 Santa Rita&Hopyard Piping Impv $0 $0 $0
<br /> 8 Foothill and Sycamore RCS $0 $0 $0
<br /> 9 West Las Positas Boulevard Reconstruction $205,000 $0 $0
<br /> 10 Infrastructure Improvements $2,000,000 $2,250,000 $4,950,000
<br /> 11 Water Supply Alternatives Design Phase $2,000,000 $2,250,000 $2,475,000
<br /> 12 Total-Water Replacement $5,255,000 $5,681,250 $8,724,375
<br /> 13
<br /> 14 Water R&R
<br /> 15 Machinery And Equipment $0 $0 $0
<br /> 16 Buildings&Structures $0 $0 $0
<br /> 17 CIP Projection $700,000 $787,500 $866,250
<br /> 18 Total-Water R&R $700,000 $787,500 $866,250
<br /> 19
<br /> 20 Recycled Water
<br /> 21 Annual Recycled Water System Repairs and Improvements $50,000 $56,250 $61,875
<br /> 22 Recycled Water System Management Plan $0 $0 $0
<br /> 23 Regional Fill Station $0 $0 $0
<br /> 24 Total-Recycled Water $50,000 $56,250 $61,875
<br /> 25
<br /> 26 Total-Capital Projects $6,005,000 $6,525,000 $9,652,500
<br /> 2.10. Status Quo Financial Plan
<br /> Table 2-18 shows the projected financial plan based on revenues at existing rates with no adjustments,or the
<br /> "status quo" scenario. Revenues(Line 10)are derived from Table 2-12.Note that the revenues from interest
<br /> income in the status quo scenario is lower due to a decrease in fund balances. O&M expenses(Line 18)are derived
<br /> from Table 2-15.Existing and proposed debt service(Lines 21 and 22)and cash funded CIP(Lines 23 and 24)are
<br /> derived from Table 2-16 and Table 2-17,respectively.
<br /> Net revenue is equal to total revenues(Line 10)less O&M expenses(Line 18).Net cash flow(Line 27)is equal to
<br /> net revenue less debt service and cash funded CIP(Line 25). Debt coverage(Line 31)is calculated by dividing net
<br /> revenue by debt service. The water utility will default on debt coverage starting in FY 2024. City staff provided
<br /> projected beginning fund balances for FY 2024(Column B,Lines 35 and 40).Ending balances(Lines 36,41,and
<br /> 46)are calculated by adding beginning balances to net cash flow. The reserve targets of 35%of annual water and
<br /> recycled water O&M expenses are derived from the City's existing reserve policies. Under the status quo scenario,
<br /> the water utility as a whole will not meet reserve targets in any year of the Study period.
<br /> 24 CITY OF PLEASANTON
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