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Table 2-18: Status Quo Financial Plan <br />Line Financial Plan FY 2024 FY 2025 FY 2026 <br />1 Revenues <br />2 Rate Revenues <br />3 Water 26,918,811 $27,734,889 $28,578,405 <br />4 Recycled Water 3,255,500 3,216,401 3,256,700 <br />5 Revenue Adjustments 0 0 0 <br />6 Other Revenues-Water 2,720,041 1,021,041 1,047,000 <br />7 Other Revenues-Recycled Water 969,462 987,962 1,036,462 <br />8 Interest Income-Water 275,000 0 0 <br />9 Interest Income-Recycled Water 0 0 0 <br />10 Total-Revenues 34,138,814 $32,960,292 $33,918,568 <br />11 <br />12 O&M Expenses <br />13 Purchased Water Fixed-Water 9,314,331 9,873,191 $10,465,582 <br />14 Purchased Water Variable-Water $12,795,669 $13,735,207 $12,747,969 <br />15 Purchased Water-Recycled Water $1,690,021 1,809,337 1,937,076 <br />16 O&M Expenses-Water 10,842,999 $11,358,431 $11,863,986 <br />17 O&M Expenses-Recycled Water 762,057 796,631 828,990 <br />18 Total-O&M Expenses 35,405,077 $37,572,796 $37,843,602 <br />19 <br />20 Debt and Capital <br />21 Debt Service-Water 1,385,849 1,385,849 1,385,849 <br />22 Debt Service-Recycled Water 1,415,535 1,415,535 434,895 <br />23 Rate Funded CIP-Water 3,955,000 4,468,750 7,590,625 <br />24 Rate Funded CIP-Recycled Water 50,000 56,250 61,875 <br />25 Total-Debt and Capital 6,806,384 7,326,384 9,473,244 <br />26 <br />27 Net Cash Flow 8,072,648) ($11,938,888) ($13,398,278) <br />28 Net Revenue 1,266,264) ($4,612,504) ($3,925,035) <br />29 <br />30 Debt Coverage <br />31 Calculated 0.89) 3.26) 9.03) <br />32 Required 1.25 1.25 1.25 <br />33 <br />34 Water Operating and Capital <br />35 Beginning Balance 9,852,554 5,472,557 ($8,592,940) <br />36 Ending Balance 5,472,557 ($8,592,940) ($25,021,546) <br />37 Reserve Target 11,533,550 $12,238,390 $12,277,138 <br />38 <br />39 Recycled Water Operating <br />40 Beginning Balance 1,873,039) ($1,565,690) ($1,439,080) <br />41 Ending Balance 1,565,690) ($1,439,080) 408,753) <br />42 Reserve Target 918,997 962,858 1,007,642 <br />43 <br />44 Combined Financial Plan <br />45 Beginning Balances 7,979,515 3,906,867 ($10,032,020) <br />46 Ending Balances 3,906,867 ($10,032,020) ($25,430,299) <br />47 Reserve Target 12,452,547 $13,201,248 $13,284,780 <br />Figure 2-1 and Figure 2-2 show the projected status quo financial plans for water and recycled water in graphical <br />format,respectively. The bars represent the water utility's cash needs: O&M expenses(light gray),debt service <br />dark gray),rate funded capital(yellow), reserve funding(green), and purchased water(blue).The solid line <br />represents the current revenues,which is below the stacked bars for each for water, signifying that the City's <br />current water revenues are not sufficient to fund its costs. <br />WATER AND RECYCLED WATER RATE STUDY REPORT 25