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Page 7 of 10 <br />Figure 3 shows the results of the Prioritize scenario in four graphs: <br />• The Revenue Requirement graph compares the revenues (lines) and expenses <br />(stacked bars). In this scenario, the City’s revenues will be sufficient to meet all <br />expenses from FY 2028 and onward. <br />• The Fund Balance graph compares the projected ending balances for the combined <br />sewer enterprise fund (green bars) and the reserve policy targets (dashed line). In this <br />scenario, the City will meet its combined sewer enterprise fund balance targets by the <br />end of FY 2030. <br />• The Debt Coverage graph compares the calculated debt coverage (blue line) and the <br />required debt coverage (dashed black line). In this scenario, the City meets its debt <br />coverage requirements for the new debt issued to fund CIP. <br />• The Capital Projects graph shows the total CIP funding by funding source. In this <br />scenario, the City will fund its sewer CIP with rates/cash (green bars) and new debt <br />(blue bars). <br /> <br />Figure 3: Projected Financial Plan (Prioritize) <br /> <br />Scenario 3 - Defer <br />The Defer scenario defers some near-term improvements to reduce spending, but as a result, <br />increases program risk. In this scenario, O&M improvements are the same as the Maintain <br />scenario, as additional deferments are not recommended for regulatory compliance. For <br />capital improvements, this scenario includes the same near-term projects as the Maintain <br />scenario, with the exception that it defers the four lift-station rehabilitations and a portion of the <br />emergency generator improvements. Although keeping the improvements in the near term, it <br />also defers one pipeline capacity improvement and the Amberwood Siphon improvement by <br />two years. <br /> <br />Table 4 shows the current and additional sewer collection rate revenues, O&M expense <br />program, and proposed CIP funding for the Defer scenario. Total City O&M expenses over five <br />years are equal to $48.9 million. Total CIP costs over five years are equal to $34.0 million, and <br />$24.0 million of those costs are projected to be funded through new debt issuances. <br />Page 103 of 144