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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />98 <br />The cash balances are equal to the operating and capital fund balance in FY 2025 (Appendix, Table 8-4). <br />The outstanding debt principal is based on the remaining balance on the City’s 2024 water revenue bond <br />(Table 2-15). <br /> <br />Table 7-1: System Value (Buy-In Component) <br />Line Buy-In Component System Value <br />1 Water Asset Value (RCLD) $103,232,739 <br />2 Plus Cash Balances $16,382,209 <br />3 Less Outstanding Debt Principal ($17,275,000) <br />4 Total $102,339,948 <br /> <br /> <br />7.3 INCREMENTAL COMPONENT <br />The Incremental component calculates the value of the future water system and its associated capacity, <br />which includes the future expansion-related CIP shown in Table 7-2. <br /> <br />The future system value is determined based on the twenty-year expansion CIP (capital projects related <br />to increasing capacity for future users) from the City’s WSMP. CIP costs are shown in today’s dollars, <br />since connection fees will increase based on CPI each year. <br /> <br />Table 7-2: System Value (Incremental Component) <br />Line Incremental Component (20 Year Total) System Value <br />1 Water Supply, Transmission & Quality $6,777,458 <br />2 Water Distribution Piping $3,380,000 <br />3 Water Facilities $13,016,200 <br />4 Total $23,173,658 <br /> <br />7.4 PROPOSED WATER CONNECTION FEES <br />Table 7-3 shows the water connection fee calculation based on the Hybrid Method. Buy-in costs are <br />allocated to the current system (Table 7-1) and incremental costs are allocated to the future system <br />(Table 7-2). The equivalent meters used in the current system are from Table 3-9 and equivalent meters <br />for the future system are derived from estimates provided in the Water System Management Plan. The <br />Buy-In costs are divided by the estimated EMUs (Equivalent Meter Units) served for the current system; <br />the Incremental costs are divided by the estimated EMUs served for the future system. An EMU is the <br />same as an EDU (most customers have a 5/8” meter). The proposed water connection fee per EDU is the <br />sum of the current system and future system unit costs (Line 4). <br /> <br />Table 7-3: Water Connection Fee Calculation <br />Line Connection Fee Calculation Current <br />System <br />Future <br />System Total <br />1 Existing System Value (Buy-In) $102,339,948 $0 $102,339,948 <br />2 Future User CIP (Incremental) $0 $23,173,658 $23,173,658 <br />3 Equivalent Meters Served 41,880 8,205 50,085 <br />4 Connection Fee per EMU $2,444 $2,825 $5,269