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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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