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8.A. - Page 43 of 51 <br />TABLE A10 <br />CITY OF REDWOOD CITY SEWER UTILITY FUND <br />PROJECTED OPERATING RESULTS AND DEBT SERVICE COVERAGE <br />FISCAL YEAR ENDING JUNE 30 <br />Parity SVCW Obligations and Subordinate Debt <br />Coverage 2.07 1.77 1.77 1.86 1.51 <br />SVCW Non -Operating Obligations <br />SVCW JPA Obligations $ 485,000 $ 1,162,170 $ 971,400 $ 1,214,250 $ 1,457,100 <br />SVCW Pay -Go Capital Funding 874,000 629,220 728,550 728,550 728,550 <br />Total SVCW Non -Operating Obligations $ 1,359,000 $ 1,791,390 $ 1,699,950 $ 1,942,800 $ 2,185,650 <br />Surplus/(Deficiency) $ 10,272,616 $ 6,344,014 $ 6,935,405 $ 7,679,532 $ 5,163,989 <br />Beginning Working Capital Balance(12) $ 38,204,822 $ 42,185,006 $ 44,404,020 $ 42,034,425 $ 40,853,957 <br />Plus (Less) Surplus/(Deficiency) $ 10,272,616 $ 6,344,014 $ 6,935,405 $ 7,679,532 $ 5,163,989 <br />(Less) Collection System Capital improvements $ (6,292,432) $ (4,125,000) $ (9,305,000) $ (8,860,000) $ (8,780,000) <br />Ending Working Capital Balance $ 42,185,006 $ 44,404,020 $ 42,034,425 $ 40,853,957 $ 37,237,946 <br />(1) Includes revenues from City sewer accounts and Contract Agencies. Fiscal year 2019-20 amount is based on unaudited actual results. <br />Subsequent years reflect a rate increase of 4.5% for fiscal year 2021-22 and projected rate increases thereafter of 4% per year. See the caption <br />—Wastewater Rates" herein. <br />(2) Fiscal year 2019-20 amount is based on unaudited actual results. Projected to remain level through Fiscal Year 2023-24. <br />(3) Includes interest income and other miscellaneous revenues. Interest income assumes an annual earnings rate of 1.0%. <br />c4 Includes sanitary sewer maintenance, storm water collection and disposal, revenue and administrative support services, right-of-way rental <br />and SVCW wastewater treatment operations. Fiscal year 2019-20 amount is based on unaudited actual results, with subsequent years <br />assuming annual increases of 4%. <br />cs Represents Redwood City's SBSA Bond Payments due under the Redwood City Financing Agreement with respect to the Authority's <br />outstanding Parity Debt, which are senior to the pledge of and lien upon the Net Revenues for the payment of Subordinate Debt under the <br />Redwood City Financing Agreement. Amounts shown are gross of any reserve and interest credits that may be received by Redwood City. <br />(Footnotes continued on following page) <br />ATTY/AGR/2020.264/PRELIMINARY OFFICIAL STATEMENT– WASTEWATER <br />REV: 11-18-2020 EI <br />Page 21 of 29 <br />709 <br />2020 <br />2021 <br />2022 <br />2023 <br />2024 <br />GROSS REVENUES <br />Sewer Service Charges(') <br />$ 42,000,211 <br />$ 41,373,022 <br />$ 43,027,943 <br />$ 44,749,061 <br />$ 46,539,023 <br />Connection Fees(2) <br />369,543 <br />100,000 <br />100,000 <br />100,000 <br />100,000 <br />Investment Earnings and Other Revenues(3) <br />536,868 <br />258,000 <br />401,986 <br />399,668 <br />405,518 <br />Total Gross Revenues <br />$ 42,906,622 <br />$ 41,731,022 <br />$ 43,529,929 <br />$ 45,248,729 <br />$ 47,044,541 <br />OPERATION AND MAINTENANCE COSTS <br />Operating Expenses <br />$ 7,674,369 <br />$ 9,968,969 <br />$ 10,282,549 <br />$ 10,608,673 <br />$ 10,947,841 <br />SVCW Operating Expenses <br />12,715,203 <br />13,023,504 <br />13,414,210 <br />13,816,636 <br />14,231,135 <br />Total Operation and Maintenance Costs(4) <br />$ 20,389,572 <br />$ 22,992,473 <br />$ 23,696,759 <br />$ 24,425,309 <br />$ 25,178,976 <br />NET REVENUES <br />$ 22,517,050 <br />$ 18,738,549 <br />$ 19,833,170 <br />$ 20,823,420 <br />$ 21,865,565 <br />Financing Agreement Supported SVCW Debt(5) <br />SVCW 2009 Bonds() <br />$ 1,481,133 <br />$ <br />$ <br />$ <br />$ <br />SVCW 2014 Bonds(') <br />2,071,801 <br />709,240 <br />SVCW 2015 Bonds(7) <br />1,455,279 <br />1,961,375 <br />SVCW 2018 Bonds <br />4,561,894 <br />4,559,769 <br />4,559,269 <br />4,560,144 <br />4,562,144 <br />SVCW 2020 Bonds <br />2,057,435 <br />4,581,977 <br />4,584,375 <br />4,573,806 <br />WIFIA Loan(') <br />Total Financing Agreement Supported SVCW Debt <br />$ 9,570,107 <br />$ 9,287,819 <br />$ 9,141,246 <br />$ 9,144,519 <br />$ 9,135,949 <br />Parity Debt Coverage(9) <br />2.35 <br />2.02 <br />2.17 <br />2.28 <br />2.39 <br />City Share of Other SVCW Obligations(10) <br />SRF Loan <br />$ 1,315,327 <br />$ 1,315,327 <br />$ 2,056,569 <br />$ 2,056,569 <br />$ 2,056,569 <br />Anticipated Future SRF Loans <br />3,323,408 <br />Total City Share of Other SVCW Obligations <br />$ 1,315,327 <br />$ 1,315,327 <br />$ 2,056,569 <br />$ 2,056,569 <br />$ 5,379,977 <br />Subordinate Debt" <br />Series 2019 Notes]') <br />Total Subordinate Debt <br />Parity SVCW Obligations and Subordinate Debt <br />Coverage 2.07 1.77 1.77 1.86 1.51 <br />SVCW Non -Operating Obligations <br />SVCW JPA Obligations $ 485,000 $ 1,162,170 $ 971,400 $ 1,214,250 $ 1,457,100 <br />SVCW Pay -Go Capital Funding 874,000 629,220 728,550 728,550 728,550 <br />Total SVCW Non -Operating Obligations $ 1,359,000 $ 1,791,390 $ 1,699,950 $ 1,942,800 $ 2,185,650 <br />Surplus/(Deficiency) $ 10,272,616 $ 6,344,014 $ 6,935,405 $ 7,679,532 $ 5,163,989 <br />Beginning Working Capital Balance(12) $ 38,204,822 $ 42,185,006 $ 44,404,020 $ 42,034,425 $ 40,853,957 <br />Plus (Less) Surplus/(Deficiency) $ 10,272,616 $ 6,344,014 $ 6,935,405 $ 7,679,532 $ 5,163,989 <br />(Less) Collection System Capital improvements $ (6,292,432) $ (4,125,000) $ (9,305,000) $ (8,860,000) $ (8,780,000) <br />Ending Working Capital Balance $ 42,185,006 $ 44,404,020 $ 42,034,425 $ 40,853,957 $ 37,237,946 <br />(1) Includes revenues from City sewer accounts and Contract Agencies. Fiscal year 2019-20 amount is based on unaudited actual results. <br />Subsequent years reflect a rate increase of 4.5% for fiscal year 2021-22 and projected rate increases thereafter of 4% per year. See the caption <br />—Wastewater Rates" herein. <br />(2) Fiscal year 2019-20 amount is based on unaudited actual results. Projected to remain level through Fiscal Year 2023-24. <br />(3) Includes interest income and other miscellaneous revenues. Interest income assumes an annual earnings rate of 1.0%. <br />c4 Includes sanitary sewer maintenance, storm water collection and disposal, revenue and administrative support services, right-of-way rental <br />and SVCW wastewater treatment operations. Fiscal year 2019-20 amount is based on unaudited actual results, with subsequent years <br />assuming annual increases of 4%. <br />cs Represents Redwood City's SBSA Bond Payments due under the Redwood City Financing Agreement with respect to the Authority's <br />outstanding Parity Debt, which are senior to the pledge of and lien upon the Net Revenues for the payment of Subordinate Debt under the <br />Redwood City Financing Agreement. Amounts shown are gross of any reserve and interest credits that may be received by Redwood City. <br />(Footnotes continued on following page) <br />ATTY/AGR/2020.264/PRELIMINARY OFFICIAL STATEMENT– WASTEWATER <br />REV: 11-18-2020 EI <br />Page 21 of 29 <br />709 <br />