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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. <br /> <br />Page 185 of 923