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<br />Table 16
<br />Projection of Revenues, Expenses and Debt Service Coverage
<br />(for the Fiscal Years Ending June 30)
<br />Estimated Actual Budget Forecast
<br />2024 2025 2026 2027 2028 2029
<br />Gross Revenues
<br />Basic Service Charges (1)$16,192,048 $17,488,928 $18,713,153 $19,835,942 $21,026,099 $22,287,665
<br />Connection Fees (2)149,470 160,000 160,000 160,000 160,000 160,000
<br />Miscellaneous Revenues 152,185 145,000 145,000 145,000 145,000 145,000
<br />Water Capacity Fees (2)2,471,171 2,994,062 2,163,033 1,219,878 1,271,056 1,271,056
<br />Water Sales (1)28,235,707 31,365,295 33,560,866 35,574,518 37,708,989 39,971,528
<br />Total Operating Income $47,200,581 $52,153,285 $54,742,052 $56,935,338 $60,311,143 $63,835,249
<br />Other Revenue 279,392 10,000 10,000 10,000 10,000 10,000
<br />Interest Income 1,295,280 1,676,776 540,699 239,007 239,007 239,007
<br />Total Gross Revenues $48,775,253 $53,840,061 $55,292,750 $57,184,344 $60,560,150 $64,084,255
<br />M&O Expenses (3)
<br />Customer Support $2,535,325 $2,619,246 $3,055,231 $3,177,440 $3,304,538 $3,436,720
<br />Water System Maintenance 8,947,409 9,470,550 9,880,787 10,276,018 10,687,059 11,114,542
<br />Water Purchases (4)20,851,323 26,655,000 27,028,170 28,460,663 30,566,752 31,667,155
<br />Water Resource Management 1,617,985 1,711,550 1,785,902 1,857,338 1,931,632 2,008,897
<br />Recycled Water (5) 1,850,667 2,987,695 2,721,466 2,830,324 2,943,537 3,061,279
<br />Total M&O Expenses $35,802,708 $43,444,041 $44,471,556 $46,601,783 $49,433,518 $51,288,593
<br />Net Revenues Available for Debt Service $12,972,545 $10,396,020 $10,821,194 $10,582,561 $11,126,632 $12,795,662
<br />2013 Installment Payments 2,061,000 397,875 ----
<br />2015 Installment Payments 1,418,444 1,420,644 1,421,244 1,420,244 1,418,294 1,418,294
<br />2017 Installment Payments 490,419 495,419 484,419 497,669 494,919 494,919
<br />2024 Installment Payments - 1,505,325 1,950,000 1,899,250 1,900,000 1,902,500
<br />Total Debt Service $3,969,863 $3,819,263 $3,855,663 $3,817,163 $3,813,213 $3,815,713
<br />Estimated Debt Service Coverage 3.27 2.72 2.81 2.77 2.84 3.19
<br />________________________
<br />Source: City of Redwood City, Administration.
<br />(1)Charges for Service (Basic Service and Water Sales) include those charges shown in Table 10 and other miscellaneous charges for Service. Charges for Services
<br />includes an 8.0% water rate increase for the period February 1, 2024 to December 31, 2024 and a 7.0% water rate increase for the calendar year 2025 which
<br />was approved and adopted by the City Council on December 18, 2023. Charges for Services for calendar year 2026 includes a rate increase sufficient to increase
<br />revenues 7%, followed by rate increases sufficient to increase revenues 6% annually through 2029, but these increases have not been approved by the City
<br />Council. Such increases, if approved, could be higher or lower. These projections also assume certain increases in revenues from new planned developments
<br />and stable water demand from existing customers.
<br />(2)The City consolidated its one-time fees into two categories starting in Fiscal Year 2023-24. A “connection fee” is charged for new meters and installation. A
<br />“capacity fee” is also charged to reimburse the Enterprise for the increased capital and supply costs associated with new development. In prior fiscal years the
<br />City charged separate connection fees, facility fees, and capacity charges. Water capacity fees are projected to increase temporarily in Fiscal Years 2024-25
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