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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />33 <br />Table 2-19: Status Quo Financial Plan Scenario <br />Line Fiscal Year Revenue <br />Adjustments Debt Issuance Debt Proceeds <br />for CIP <br />1 FY 2026 0.0% $0 $0 <br />2 FY 2027 0.0% $0 $0 <br />3 FY 2028 0.0% $0 $0 <br />4 FY 2029 0.0% $0 $0 <br /> <br />STATUS QUO CASH FLOW PROJECTIONS <br />Table 2-20 shows the cash flow projections for the status quo financial plan. Revenues16 (Lines 1-6) are <br />from Table 2-11. Operating expenses (Lines 8-18) are from Table 2-14. Net operating revenue (Line 20) is <br />equal to the difference between total revenues (Line 6) and total expenses (Line 18). Debt service (Lines <br />22-24) is from Table 2-15. Rate funded CIP (Line 29) is calculated from total CIP (Table 2-18, Line 4) less <br />grant funded CIP (Table 2-18, Line 1). The status quo scenario assumes no new debt; all CIP is expected <br />to be rate or grant funded. Net cash flow (Line 32) is equal to the net operating revenue (Line 20) less debt <br />service (Line 24) and rate funded CIP (Line 29). Grant proceeds, debt proceeds, grant funded CIP and <br />debt funded CIP are not included in the cash flow projections. <br /> <br />The net operating revenue in this scenario is negative starting at the end of FY 2027, meaning that the <br />City’s current revenues are not sufficient to fund its operating expenses. The net cash flow in the status <br />quo scenario is negative for all years, meaning that the City’s current revenues are not sufficient to fund <br />its debt service and annual CIP. <br /> <br />16 Interest income (Line 5) is different in the status quo financial plan scenario because it is based on projected fund <br />balances. The status quo scenario results in lower fund balances; therefore, the City has less interest income. <br />Table 2-12 shows the interest income for the proposed financial plan scenario.