Res18 15642 - Laserfiche WebLink

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Projected Revenues, Expenses, and Debt Service Coverage Assumptions Related to Revenue 1.The City's sewer service charges are based on actual revenues received in fiscal year 2016- 17 and increase due to adopted and projected rate increases and growth. 2. Contract agencies charges are based on payments calculated for each agency according to their individual contracts with the City, and assume a 6 - month lag in payments. 3. Interest earnings are based on the City's 2017-18 budget and are subsequently projected based on the annual beginning fund balance multiplied by projected interest rate shown for each year, with interest rates projected to increase from 1 % to 2% over the next three years. (LAIF currently yields approximately 1.14% as of October 2017). 4.Revenues from the City's sewer facilities fees and connection fees are estimated at $100,000 per year, although they have been substantially higher during the prior 3 years. 5.Other Revenues are projected at $50,000 per year based on the City's 2017-18 budget. Assumptions Related to Expenses 1. Operating and maintenance expenses are mostly based on the City's 2017-18 budget and escalate at the annual rate of 4% to account for future operating cost inflation. 2.SVCW wastewater treatment operations are based the City's share of allocated costs according to SVCW's 2017-18 budget with future costs escalating at the annual rate of 3%. 3.The City's share of debt service for SVCW's capital program are based on updated projections provided by SVCW as shown in Table A8. 4.City sewer system capital improvements are projected $7 million most years, with funding temporarily reduced to $6 million and will be funded on a pay - as - you - go basis without the need for debt financing. 5.SVCW pay - go capital funding is based on SVCW's 2017-18 budget and assume a constant level of funding in future years, in line with SVCW projections. 6. SVCW SRF reserve contributions are based on SVCW projections shown on Table A8 and are based on the assumption that each of the SVCW member agencies make annual contributions toward their respective share of the reserve requirement for SVCW's SRF loans. Actual SRF reserve requirements are required to be met approximately 90 days prior to the project completion date for SRF loan. A-18