ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton 2025 Water Rate Study Water Resources Economics 7 Figure 1-2: Projected Potable and Recycled Debt Coverage (Status Quo Financial Plan) PROPOSED REVENUE ADJUSTMENTS AND DEBT ISSUANCES Overall annual increases in potable and recycled water rate revenues resulting from rate increases are referred to as “revenue adjustments.” WRE worked with City Council, PWAG, and City staff to determine the most appropriate financial plan scenario, which is shown in Table 1-5. The proposed financial plan scenario includes four years of revenue adjustments, which are required to maintain financial sufficiency and resiliency, and three debt issuances in FY 2026 through FY 2028 to fund $35 million worth of capital projects. Significant projects in the WSMP include approximately $24.7 million in water supply project costs to recover use of groundwater wells and improve Zone 7 turnouts and approximately $16.7 million in distribution pipeline improvement costs from FY 2026 to FY 2029. Table 1-5: Proposed Financial Plan Scenario Line Fiscal Year Revenue Adjustments Debt Issuance Debt Proceeds for CIP 1 FY 2026 15.0% $15,306,122 $15,000,000 2 FY 2027 15.0% $10,204,082 $10,000,000 3 FY 2028 8.0% $10,204,082 $10,000,000 4 FY 2029 8.0% $0 $0 PROPOSED FINANCIAL PLAN The proposed financial plan applies the revenue adjustments and debt issuance, shown in Table 1-5, to reevaluate financial performance based on the same two metrics: fund balance and debt coverage. Figure 1-3 shows the projected potable and recycled water fund balances under the proposed scenario. In this scenario, the City will meet its reserve targets each year of the planning period.