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Page 7 of 10 <br />percent debt coverage ratio. By front-loading critical capital projects, the Enhanced Scenario <br />helps mitigate unplanned emergency repairs and enhances system resilience, reducing <br />operational risks over the long term. This scenario also allows for a more balanced staff <br />approach to operating the system and managing implementation of the capital projects. <br /> <br />The results are presented in Figure 3 below and in Attachment 3. <br /> <br />Figure 3 – Enhance Scenario Model Results <br /> <br /> <br />Accelerate Scenario <br />The Accelerated Scenario frontloads capital investments, completing all WSMP Priority A <br />projects within the first five years. While this scenario requires the highest near-term <br />investment, it also delivers the greatest reduction in long-term infrastructure costs and provides <br />the highest level of service to customers. However, the aggressive project timeline places <br />significant demands on resources and will impact residents by increasing traffic and other <br />disruptions due to simultaneous large-scale infrastructure work. <br /> <br />Under this scenario, the minimum recommended water revenue increases to meet the needs <br />are: <br />• 24 percent in FY 2025/26 and FY 2026/27 <br />• 7 percent in FY 2027/28 and FY 2028/29 <br /> <br />The City would also issue $45 million in new debt over the four-year study period: <br />• $5 million in FY 2025/26 <br />• $20 million in FY 2026/27 <br />• $20 million in FY 2027/28 <br />• No new debt in FY 2028/29 <br /> <br />This combination of rate adjustments and debt issuance ensures the City meets all financial <br />Page 9 of 27