ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton 2025 Water Rate Study Water Resources Economics 50 Table 3-2: Operating Costs by System Functions Line Cost Functions Operating Expenses Percent of Total 1 Meter Maintenance $144,182 0.4% 2 Customer Service $927,634 2.7% 3 Water Supply $24,194,417 70.5% 4 Pumping 19 $0 0.0% 5 Storage $24,464 0.1% 6 T&D $624,386 1.8% 7 Conservation $287,879 0.8% 8 General 20 $8,115,909 23.6% 9 Revenue Offset $0 0.0% 10 Total $34,318,871 100.0% CAPITAL ASSET FUNCTIONALIZATION WRE worked with City staff to evaluate and allocate the City’s current capital assets to the most closely associated functional categories within the water system, as shown in Table 3-3. The detailed allocation of the current capital assets to the functional categories is included in the Appendix (Table 8-6). It is standard practice in most water cost-of-service studies to functionalize current capital assets rather than planned CIP costs, since the latter can fluctuate more significantly from year to year. The current capital asset base provides a more stable representation of long-term capital needs and their associated costs. The asset valuation methodology used in this study is Replacement Cost Less Depreciation (RCLD), which takes both inflation and depreciation of the City’s water system into account. Table 3-3: Capital Assets by System Functions Line Cost Functions Capital Assets (RCLD) Percent of Total 1 Meter Maintenance $5,299,811 5.1% 2 Customer Service $0 0.0% 3 Water Supply $1,210,415 1.2% 4 Pumping $35,914,378 34.8% 5 Storage $32,322,940 31.3% 6 T&D $23,929,932 23.2% 7 Conservation $0 0.0% 8 General $4,555,263 4.4% 9 Revenue Offset $0 0.0% 10 Total $103,232,739 100.0% 19 Electricity costs related to pumping are included in the T&D line item. 20 General costs include all business and administrative costs.