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Table 3-2: FY 2024 Recycled Water Revenue Requirement
<br />Line RW Revenue Requirement1 Operating
<br />1 Revenue Requirements
<br />2 O&M Expenses 2,452,078 2,452,078
<br />3 Debt Service 1,415,535 $1,415,535
<br />4 Rate Funded Capital Projects 50,000 50,000
<br />5 Total-Revenue Requirements 2,452,078 $1,465,535 $3,917,613
<br />6
<br />7 Revenue Offsets
<br />8 Other Revenues 969,462) 969,462)
<br />9 Interest Income 0 0
<br />10 Total-Revenue Offsets 969,462) 0 ($969,462)
<br />11
<br />12 Adjustments
<br />13 Adjustment for Cash Balance 382,631) 382,631)
<br />14 Adjustment to Annualize Rate Increase 488,325 488,325
<br />15 Total-Adjustments 105,694 0 105,694
<br />16
<br />17 Revenue Required From Rates 1,588,310 $1,465,535 $3,053,845
<br />Table 3-3 shows the revenue requirement for Zone 7 fixed and variable charges. Since these costs are recovered
<br />through a separate passthrough rate,their revenue requirement is excluded from the other water and recycled water
<br />revenue requirements. The revenue requirements are composed of the Zone 7 Fixed Charges(Column D,Line 2)
<br />and the Zone 7 Variable Charges(Column D,Line 3),which are placed into the corresponding fixed and variable
<br />cost components.The total passthrough revenue requirement is shown in Line 4.
<br />Table 3-3: FY 2024 Passthrough Revenue Requirement
<br />Line Passthrouah - FY 2024 Fixed Variable To
<br />1 Revenue Requirements
<br />2 Zone 7 Fixed Charges 9,314,331 9,314,331
<br />3 Zone 7 Variable Charges 12,795,669 12,795,669
<br />4 Total-Revenue Requirements 9,314,331 12,795,669 22,110,000
<br />3.3• Water System Functions
<br />After determining the water utility's revenue requirement,the next step in a COS analysis is to categorize operating
<br />and capital costs into system functions. Raftelis worked with City staff to determine the appropriate functions for
<br />the operating and capital.The functions for O&M include labor,electricity, other expenses, and attrition savings.
<br />The function for capital costs is water capital costs related to the City's water distribution system.
<br />Operating costs are functionalized based on actual costs and spreading costs between base,max day,and max
<br />hour. For Labor,Electricity,and Other Expenses,actual cost estimates provided by City staff'were allocated to
<br />Meter and Customer functions. The remaining costs were allocated based on average max day/max hour
<br />proportions since the water system is primarily transmission and distribution.This is seen in Table 34.
<br />34 CITY OF PLEASANTON
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