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Table 3-2: FY 2024 Recycled Water Revenue Requirement
<br /> Line RW Revenue Requirement1 Operating
<br /> 1 Revenue Requirements
<br /> 2 O&M Expenses $2,452,078 $2,452,078
<br /> 3 Debt Service $1,415,535 $1,415,535
<br /> 4 Rate Funded Capital Projects $50,000 $50,000
<br /> 5 Total-Revenue Requirements $2,452,078 $1,465,535 $3,917,613
<br /> 6
<br /> 7 Revenue Offsets
<br /> 8 Other Revenues ($969,462) ($969,462)
<br /> 9 Interest Income $0 $0
<br /> 10 Total-Revenue Offsets ($969,462) $0 ($969,462)
<br /> 11
<br /> 12 Adjustments
<br /> 13 Adjustment for Cash Balance ($382,631) ($382,631)
<br /> 14 Adjustment to Annualize Rate Increase $488,325 $488,325
<br /> 15 Total-Adjustments $105,694 $0 $105,694
<br /> 16
<br /> 17 Revenue Required From Rates $1,588,310 $1,465,535 $3,053,845
<br /> Table 3-3 shows the revenue requirement for Zone 7 fixed and variable charges. Since these costs are recovered
<br /> through a separate passthrough rate,their revenue requirement is excluded from the other water and recycled water
<br /> revenue requirements. The revenue requirements are composed of the Zone 7 Fixed Charges(Column D,Line 2)
<br /> and the Zone 7 Variable Charges(Column D,Line 3),which are placed into the corresponding fixed and variable
<br /> cost components.The total passthrough revenue requirement is shown in Line 4.
<br /> Table 3-3: FY 2024 Passthrough Revenue Requirement
<br /> Line Passthrouah - FY 2024 Fixed Variable To
<br /> 1 Revenue Requirements
<br /> 2 Zone 7 Fixed Charges $9,314,331 $9,314,331
<br /> 3 Zone 7 Variable Charges $12,795,669 $12,795,669
<br /> 4 Total-Revenue Requirements $9,314,331 $12,795,669 $22,110,000
<br /> 3.3• Water System Functions
<br /> After determining the water utility's revenue requirement,the next step in a COS analysis is to categorize operating
<br /> and capital costs into system functions. Raftelis worked with City staff to determine the appropriate functions for
<br /> the operating and capital.The functions for O&M include labor,electricity, other expenses, and attrition savings.
<br /> The function for capital costs is water capital costs related to the City's water distribution system.
<br /> Operating costs are functionalized based on actual costs and spreading costs between base,max day,and max
<br /> hour. For Labor,Electricity,and Other Expenses,actual cost estimates provided by City staff'were allocated to
<br /> Meter and Customer functions. The remaining costs were allocated based on average max day/max hour
<br /> proportions since the water system is primarily transmission and distribution.This is seen in Table 34.
<br /> 34 CITY OF PLEASANTON
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