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City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/2537
<br />Sewer Fund
<br />Sewer revenues are expected to increase by 2.7 percent in FY 2023/24 and additional 4.2 percent
<br />in FY 2024/25 reflecting the annual Consumer Price Index (CPI) increase in local city sewer fees.
<br />However, a majority of the customers’ sewer fees are the regional sewer fees charged by DSRSD.
<br />The Budget assumes DSRSD fees will increase by three percent in FY 2023/24 and two percent in FY
<br />2024/25.
<br />Due to operating expenses increasing at a rate faster than corresponding revenue increases
<br />in recent years, the Sewer Utility program reserve has been diminishing. As reported to the City
<br />Council on February 21, 2023, FY 2022/23 projected ending funding balance is less than the
<br />minimum 30.0 percent required under the City’s reserve policy. To restore the reserve to a level
<br />above 30.0 percent, a series of reductions have been incorporated, including removal of annual
<br />transfers to the sewer capital fund for capital improvement projects and reducing repair and
<br />replacement funding.
<br />As a result of these reductions, the Sewer Utility program’s operating expenditures in FY 2023/24
<br />are $17.7 million, which is a 6.5 percent decrease from the FY 2022/23 Modified Budget, and $17.4
<br />million in FY 2024/25, which is a 1.6 percent decrease. Table 10 below summarizes revenues and
<br />expenditures for the four years ending FY 2024/25.
<br />Sewer (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 $8,908,234 $9,155,248 $6,213,964 $6,179,047
<br />Revenues 16,071,498 16,092,658 16,529,500 17,222,500
<br />Net Transfers (447,036) (95,277) 1,134,000 135,000
<br />Expenses
<br />DSRSD (10,980,118) (11,000,000) (11,670,000) (12,020,000)
<br />All other expenses (4,397,330) (8,062,616) (6,028,417) (5,403,410)
<br />Total Expenses (15,377,448) (18,938,665) (17,698,417) (17,423,410)
<br />Net Income $247,014 ($2,941,284)($34,917)($65,910)
<br />Ending Balance, June 30 $9,155,248 $6,213,964 $6,179,047 $6,113,137
<br />Table 10: Sewer Operating Fund Projected Fund Balance
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