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City of Pleasanton
<br />Sewer Rate Study Report
<br />
<br />Water Resources Economics
<br />33
<br />STATUS QUO FUND BALANCE PROJECTIONS
<br />Table 2-13 shows the O&M and Replacement fund balance projections for the status quo
<br />financial plan. Based on the sources (revenues) and uses (operating expenses, debt service, and
<br />transfer) of funds, the City’s fund balances will be negative by the end of FY 2028. At the end of the
<br />study period, the City’s fund balances will be approximately negative $41.9M in FY 2030, from a
<br />starting balance of approximately $9.3M in FY 2026. This represents a net loss of approximately
<br />$51.2M in five years.
<br />
<br />Table 2-13: Projected O&M and Replacement Fund Balances (Status Quo)
<br />Line Fund Balance
<br />(O&M and Replacement) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
<br />1 Beginning Fund Balance $9,300,929 $6,961,548 $5,314,384 ($6,490,116) ($28,753,984)
<br />2
<br />3 Sources of Funds
<br />4 Rate Revenues at Existing Rates $5,482,035 $5,725,286 $5,725,286 $5,725,286 $5,725,286
<br />5 Revenue Adjustments $0 $0 $0 $0 $0
<br />6 Interest Income $240,332 $181,418 $0 $0 $0
<br />7 Other Revenues $41,500 $45,500 $45,500 $45,500 $45,500
<br />8 Total $5,763,868 $5,952,204 $5,770,786 $5,770,786 $5,770,786
<br />9
<br />10 Uses of Funds
<br />11 Expenses
<br />(Excluding Interfund Expense) $8,103,249 $7,508,645 $11,181,686 $10,233,754 $11,000,446
<br />12 Debt Service $0 $0 $0 $0 $0
<br />13 Transfer to CIP Fund $0 $90,723 $6,393,600 $17,800,900 $7,873,300
<br />14 Total $8,103,249 $7,599,367 $17,575,286 $28,034,654 $18,873,746
<br />15
<br />16 Ending Fund Balance $6,961,548 $5,314,384 ($6,490,116) ($28,753,984) ($41,856,944)
<br />
<br />Table 2-14 shows the CIP fund balance projections for the status quo financial plan. Existing
<br />reserves are used to fund rate funded CIP and interfund expenses through FY 2027. Once existing
<br />reserves are depleted, transfers from the O&M and Replacement funds are used to fund the
<br />remaining expenses. The City’s fund balances are projected to maintain a zero ending balance
<br />from FY 2027 onward as annual transfers from O&M and Replacement funds are adjusted to meet
<br />annual funding needs in each year of the study period.
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<br />Page 185 of 923
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