CITY COUNCIL REGULAR MEETING AGENDA PACKET 7-21-26

City of Pleasanton Sewer Rate Study Report Water Resources Economics 36 2.8 PROPOSED FINANCIAL PLAN PROPOSED FINANCIAL PLAN SCENARIO The proposed financial plan includes four years of revenue adjustments and three debt issuances in FY 2028 through FY 2030, shown in Table 2-16. The proposed revenue adjustment for the first year (FY 2027) is effective in January. Proposed revenue adjustments for all subsequent years are effective in July. These adjustments are needed to maintain the City’s financial sufficiency and were developed based on input from City staff and City Council. Table 2-16: Financial Plan Scenario (Proposed) Line Fiscal Year Effective Date Revenue Adjustments Debt Issuance Debt Proceeds for CIP 1 FY 2027 1/1/2027 100.0% $0 $0 2 FY 2028 7/1/2027 10.0% $6,122,449 $6,000,000 3 FY 2029 7/1/2028 10.0% $16,326,531 $16,000,000 4 FY 2030 7/1/2029 10.0% $6,122,449 $6,000,000 PROPOSED CASH FLOW PROJECTIONS Table 2-17 shows the cash flow projections for the proposed financial plan excluding treatment pass-throughs. Revenues (Lines 1-6) are from Table 2-6. Revenue from revenue adjustments is based on the proposed financial plan scenario (Table 2-16). Operating expenses (Lines 8-13) are from Table 2-8. Net operating revenue (Line 15) is equal to the difference between total revenues (Line 6) and total expenses (Line 13). The City has no existing sewer debt service (Line 18), and proposed debt service is from Table 2-9 (Line 16). Rate funded CIP (Line 23) is from Table 2-10 (Line 8). Net cash flow (Line 26) is equal to the net operating revenue (Line 15), less debt service (Line 20) and rate funded CIP (Line 24). Debt proceeds and debt funded CIP are not included in the cash flow projections. The net operating revenue and cash flow in this scenario is positive by the end of the study period in FY 2030, meaning that the City’s proposed revenues are sufficient to fund its operating expenses, debt service, and CIP. Page 188 of 923