ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton 2025 Water Rate Study Water Resources Economics 51 REVENUE OFFSET FUNCTIONALIZATION Table 3-4 shows the revenue offsets allocated by functional categories. Based on the definition of Revenue Offsets in the beginning of this subsection of the report, all non-rate revenues including interest income, meter sales, and administration fees can be allocated toward this function except for non-rate revenues related to internal transfers (Line 9; from Table 3-1, Line 10). Table 3-4: Revenue Offsets by System Functions Line Cost Functions Revenue Offsets Percent of Total 1 Meter Maintenance $0 0.0% 2 Customer Service $0 0.0% 3 Water Supply $0 0.0% 4 Pumping $0 0.0% 5 Storage $0 0.0% 6 T&D $0 0.0% 7 Conservation $0 0.0% 8 General $0 0.0% 9 Revenue Offset ($470,000) 100.0% 10 Total ($470,000) 100.0% 3.4 COST CAUSATION COMPONENTS COST COMPONENT DEFINITIONS While the functional categories represent the costs of system functions, cost causation components represent the reasons for why and how those costs are incurred within the system (thus, cost causation). Cost causation components will be referred to as cost components in this report. The next step of the cost-of-service analysis is to allocate the Operating, Capital, and Revenue Offsets in the functional categories between the cost components, most of which directly correspond to a single functional category. The cost components in this study include the following: • Meter: directly corresponds to the Meter Maintenance functional category • Customer: directly corresponds to the Customer Service functional category • Water Supply: directly corresponds to the Water Supply functional category • Delivery: costs associated with delivering and distributing water to customers • Conservation: directly corresponds to the Conservation functional category • Revenue Offset: directly corresponds to the Revenue Offset functional category • General: directly corresponds to the General functional category