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City of Pleasanton
<br />Sewer Rate Study Report
<br />
<br />Water Resources Economics
<br />34
<br />Table 2-14: Projected CIP Fund Balances (Status Quo)
<br />Line Fund Balance (CIP) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
<br />1 Beginning Fund Balance $8,351,582 $2,860,345 $0 $0 $0
<br />2
<br />3 Sources of Funds
<br />4 Debt Proceeds $0 $0 $0 $0 $0
<br />5 Transfer from O&M Fund $0 $90,723 $6,393,600 $17,800,900 $7,873,300
<br />6 Total $0 $90,723 $6,393,600 $17,800,900 $7,873,300
<br />7
<br />8 Uses of Funds
<br />9 Interfund Expense $331,134 $341,068 $175,600 $180,900 $186,300
<br />10 Debt Funded CIP $0 $0 $0 $0 $0
<br />11 Rate Funded CIP $5,160,103 $2,610,000 $6,218,000 $17,620,000 $7,687,000
<br />12 Total $5,491,237 $2,951,068 $6,393,600 $17,800,900 $7,873,300
<br />13
<br />14 Ending Fund Balance $2,860,345 $0 $0 $0 $0
<br />
<br />STATUS QUO FINANCIAL PERFORMANCE
<br />The City’s financial performance is evaluated based on the reserve targets and debt coverage
<br />requirements, as shown in Table 2-15. Under the status quo financial plan, the City will not meet
<br />its reserve targets starting in FY 2026 and debt coverage requirements will not apply.
<br />
<br />Table 2-15: Projected Financial Performance (Status Quo)
<br />Line Financial Performance FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
<br />1 Adopted Reserve Policy
<br />2 Operating Reserve Target $7,367,794 $7,599,432 $9,209,563 $9,224,797 $9,770,583
<br />3 Ending O&M and Replacement
<br />Fund Balance $6,961,548 $5,314,384 ($6,490,116) ($28,753,984) ($41,856,944)
<br />4 Meets Target? No No No No No
<br />5
<br />6 Debt Coverage
<br />7 Required Debt Coverage 125% 125% 125% 125% 125%
<br />8 Calculated Debt Coverage No Debt No Debt No Debt No Debt No Debt
<br />9 Meets Target? No Debt No Debt No Debt No Debt No Debt
<br />
<br />Figure 2-1 shows the projected fund balances under the status quo scenario. The green bars
<br />represent the ending fund balances for the O&M and Replacement reserves (Funds 430 and 434),
<br />and the dashed line represents the operating reserve policy target. In this scenario, the City will
<br />not meet its operating reserve target starting in FY 2026, indicated by the alert balance (red
<br />circles). Projected fund balances will be negative starting in FY 2028.
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