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City of Pleasanton
<br />Sewer Rate Study Report
<br />
<br />Water Resources Economics
<br />28
<br />Table 2-8: Projected Expenses
<br />Line Expenses FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
<br />1 Source Staff Projected Projected Projected Projected
<br />2 Sewer O&M (Fund 430) $5,628,249 $6,936,645 $10,149,177 $9,615,079 $9,772,094
<br />3 Base Expenses $5,628,249 $5,829,395 $6,038,189 $6,254,944 $6,479,981
<br />4 New Expense Programs $0 $901,250 $1,883,098 $1,939,590 $2,166,604
<br />5 Staffing Related to CIP Scenarios $0 $206,000 $2,227,890 $1,420,545 $1,125,509
<br />6 Sewer Replacement (Fund 434) $2,475,000 $572,000 $1,032,509 $618,675 $1,228,351
<br />7 Base Expenses $2,475,000 $0 $0 $0 $0
<br />8 New Expense Programs $0 $572,000 $1,032,509 $618,675 $1,228,351
<br />9 Sewer CIP (Fund 431) $331,134 $341,068 $175,600 $180,900 $186,300
<br />10 Base Expenses (Interfund Expense) $331,134 $341,068 $175,600 $180,900 $186,300
<br />11 Total $8,434,383 $7,849,713 $11,357,286 $10,414,654 $11,186,746
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<br />2.4 DEBT SERVICE
<br />EXISTING AND PROPOSED DEBT SERVICE
<br />Table 2-9 shows the proposed annual debt service based on the proposed financial plan
<br />scenario. The City has no existing sewer debt service. The proposed financial plan scenario
<br />includes three new debt issuances in FY 2028 through FY 2030 (Line 7) assuming a 6% interest
<br />rate, 30-year term, and 2% issuance cost each year (Lines 2-4). This results in a range of annual
<br />debt service payments over the study period from approximately $444.8K to $2.1M by FY 2030 and
<br />an additional $28.0M of debt proceeds to fund CIP. The study assumes that the City will capitalize
<br />the issuance costs, which means that the debt issuance will be higher than the debt proceeds
<br />used to fund CIP.
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<br />Page 180 of 923
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