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7.A. - Page 81
<br /> The following table summarizes Redwood City's total projected annual payments to SVCW for
<br /> operating and maintenance expenses, debt service, and other non-operating costs. The amounts
<br /> shown are based on the latest update of SVCW's Long Term Financial Plan dated January 2016.
<br /> Note that the debt estimates developed in SVCW's Financial Plan exclude projected interest
<br /> payments for SVCW's line of credit and therefore differ slightly from the independent debt service
<br /> projections calculated by BWA.
<br /> Table S5: 10-Year SVCW Funding Requirements
<br /> 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
<br /> SVCW Operating Expenses $9,471,662 $9,818,691 $10,178,518 $10,551,623 $9,946,603 $10,383,835 $10,699,334 $10,996,974 $11,273,763 $11,526,460 $11,781,398
<br /> Change 3.7% 3.7% 3.7% -5.7% 4.4% 3.0% 2.8% 2.5% 2.2% 2.2%
<br /> SVCW Debt Service
<br /> Existing Bonds 4,379,937 5,469,446 5,156,767 5,149,125 5,152,137 4,835,651 4,833,021 4,831,378 4,827,828 4,832,561 4,821,846
<br /> Existing SRF Loans 398,278 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198 1,429,198
<br /> New Bonds - - - 729,109 729,109 1,119,452 1,119,452 1,119,452 1,119,452 1,119,452 1,119,452
<br /> New SRF Loans - - 296,009 3,695,583 5,261,404 8,271,797 10,794,385 11,182,081 12,540,606 12,540,606 12,540,606
<br /> Subtotal 4,778,215 6,898,644 6,881,974 11,003,015 12,571,848 15,656,098 18,176,056 18,562,109 19,917,084 19,921,817 19,911,102
<br /> SVCW Non-Operating Expenses
<br /> Revenue-Funded Capital 277,764 388,560 388,560 388,560 437,130 437,130 437,130 485,700 485,700 485,700 485,700
<br /> Operating Reserves 86,940 38,729 40,158 41,639 (67,522) 48,796 35,210 33,217 30,890 28,202 28,452
<br /> New Cash Reserves(SRF/aP) 350,264 2,225,571 2,591,785 2,339,643 2,758,877 1,498,279 436,555 339,631 - - -
<br /> Subtotal 714,968 2,652,860 3,020,503 2,769,842 3,128,485 1,984,205 908,895 858,548 516,590 513,902 514,152
<br /> TOTAL 14,964,845 19,370,195 20,080,995 24,324,480 25,646,936 28,024,138 29,784,285 30,417,631 31,707,437 31,962,179 32,206,652
<br /> %Change 29.4% 3.7% 21.1% 5.4% 9.3% 6.3% 2.1% 4.2% 0.8% 0.8%
<br /> 3.6.2 Rehabilitation of Aging Sewer System Infrastructure
<br /> Many of the City's sewer collection system pipelines are over 50 years old and are in need of
<br /> rehabilitation and replacement as they reach the end of their useful lives. The financial projections
<br /> include $6 to $7 million per year for ongoing repairs and replacements to the City's sewer collection
<br /> system pipelines and other miscellaneous capital improvements. Many regional agencies are facing
<br /> similar challenges.
<br /> 3.6.3 Ongoing Operating Cost Inflation
<br /> In addition to other financial needs, small annual rate adjustments are needed to keep revenues in
<br /> line with ongoing operating cost inflation, both for City operating expenses as well as SVCW
<br /> operations. For financial planning purposes, the financial projections developed in this report
<br /> assume that City operating costs escalate at an annual rate of 4%. The City's share of future SVCW
<br /> funding requirements is based on SVCW's updated Long-Term Financial Plan.
<br /> B Sewer Utility Finances& Rates 54
<br /> W Water&Sewer Financial Plans&Rate Studies
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