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36 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25
<br />Enterprise Fund
<br />Water Fund
<br />Revenues from water sales are expected to increase by 14.9 percent in FY 2023/24 and increase
<br />by an additional 9.5 percent in FY 2024/25. Large increases are due to the City-owned wells, which
<br />accounted for approximately 20.0 percent of the City’s water supply needs, having been taken
<br />offline while selection of a viable solution to remove contaminants is being explored. In addition, the
<br />City’s water rates have not been adjusted since 2020, which has resulted in revenues not keeping
<br />up with increasing costs for operation and maintenance of the infrastructure.
<br />Staff is preparing to conduct a comprehensive water rate study into which the water supply
<br />solution and potential cost increase, together with anticipated capital needs, will be incorporated.
<br />The first phase of the rate study is scheduled to be completed in the fall. As such, numbers
<br />included in the FY 2023/24 and FY 2024/25 budget, summarized in Table 9 below, reflect estimates
<br />based on preliminary analysis. Once the rate study is completed, any recommended budget
<br />amendments, as necessary, and proposed rate adjustments, will be presented to the City Council
<br />for consideration.
<br />General Fund
<br />Fund Balance
<br />Project Ending
<br />Fund Balance at
<br />06/30/2023
<br />Recommended
<br />Adjustments
<br />Project Ending
<br />Fund Balance at
<br />06/30/2024
<br />Recommended
<br />Adjustments (2)
<br />Project Ending
<br />Fund Balance at
<br />06/30/2025
<br />Unrestricted General Fund Reserve (1)$29,060,659 $4,112 $29,064,771 $293,889 $29,358,660
<br />COVID Response & Recovery 399,150 (80,000) 319,150 (319,150) -
<br />Crisis Response Program 400,000 (400,000) - - -
<br />Mobile Outreach Vehicle 280,000 (280,000) - - -
<br />Restricted General Fund Reserve 17,625,110 - 17,625,110 - 17,625,110
<br />Total $47,764,919 ($755,888)$47,009,031 ($25,261)$46,983,770
<br />Table 8: General Fund Projected Reserves
<br />1 Projected Unrestricted General Fund Reserve of $29,060,659 excludes GASB 31 fair value adjustments, a loss of $3,592,581.
<br />2 Recommend converting the COVID Response & Recovery Reserve to the Unrestricted General Fund Reserve.
<br />Table 9: Water & Recycled Water Operating Fund Projected Fund Balance
<br />Water/Recycled Water (O&M)Actual
<br />FY 21/22
<br />Modified
<br />FY 22/23
<br />Projected
<br />FY 23/24
<br />Projected
<br />FY 24/25
<br />Beginning Balance, July 1 $12,898,883 $11,321,650 $7,979,515 $9,219,139
<br />Revenues 30,346,818 30,010,541 34,468,041 37,757,041
<br />Net Transfers (3,523,735) (762,245) 2,504,018 605,018
<br />Expenses
<br />Zone 7 Purchased Water (17,825,483) (17,660,000) (22,110,000) (23,310,000)
<br />All other expenses (10,574,833) (14,930,431) (13,622,435) (13,797,342)
<br />Total Expenses (28,400,316) (32,590,431) (35,732,435) (37,107,342)
<br />Net Income ($1,577,233)($3,342,135)$1,239,624 $1,254,717
<br />Ending Balance, June 30 $11,321,650 $7,979,515 $9,219,139 $10,473,856
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