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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 Su nij FY 2024
<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 fixed 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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