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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />35 <br />STATUS QUO FUND BALANCE PROJECTIONS <br />Table 2-21 shows the fund balance projections for the status quo financial plan. Based on the sources (revenues) and uses (operating expenses, <br />debt service, and capital expenditures) of funds, the City’s fund balances will be negative by the end of FY 2027. At the end of the study period, <br />the City’s fund balances will be approximately negative $60 million in FY 2029, from a starting balance of approximately $23 million in FY 2025. <br />This represents a net loss of approximately $83 million in five years. <br /> <br />Table 2-21: Projected Potable and Recycled Fund Balances (Status Quo Financial Plan) <br />Line Fund Balance Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 <br />1 Beginning Fund Balance 17 $23,412,694 $16,218,532 $8,956,009 ($11,774,714) ($35,033,193) <br />2 <br />3 Sources of Funds <br />4 Rate Revenues $39,300,688 $41,555,742 $41,555,742 $41,555,742 $41,555,742 <br />5 Rate Revenue Adjustments $0 $0 $0 $0 $0 <br />6 Non-Rate Revenue $635,541 $635,541 $635,541 $635,541 $635,541 <br />7 Interest Income $275,000 $218,367 $0 $0 $0 <br />8 Grant Proceeds $1,000,000 $0 $0 $0 $0 <br />9 Debt Proceeds $0 $0 $0 $0 $0 <br />10 Subtotal $41,211,229 $42,409,649 $42,191,283 $42,191,283 $42,191,283 <br />11 <br />12 Uses of Funds <br />13 Expenses $36,350,797 $39,880,596 $44,129,945 $45,742,662 $46,862,972 <br />14 Debt Service $1,547,489 $1,548,645 $1,550,145 $1,550,895 $1,550,895 <br />15 Grant Funded CIP $1,000,000 $0 $0 $0 $0 <br />16 Debt Funded CIP $0 $0 $0 $0 $0 <br />17 Rate Funded CIP $9,507,105 $8,242,931 $17,241,915 $18,156,205 $19,038,590 <br />18 Subtotal $48,405,391 $49,672,172 $62,922,006 $65,449,762 $67,452,457 <br />19 <br />20 Ending Fund Balance $16,218,532 $8,956,009 ($11,774,714) ($35,033,193) ($60,294,367) <br /> <br /> <br /> <br />17 Beginning fund balances for FY 2025 include approximately $13.9 million in funds from the City’s prior debt issuance (2024 Bonds).