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City of Redwood City Water Rate Study4. ReservesRate Adj.7.0%6.0%5.0%5.0%4.0%4.5%4.5%4.0%4.0%4.0%From Table 1AFY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 NotesOperating ReservesBeginning Balance$42,935,256 $34,992,735 $27,325,747 $22,334,323 $19,376,857 $17,262,600 $14,886,798 $13,875,974 $12,504,333 $12,328,755$13,255,130Surplus/Deficit($8,330,223) ($1,713,914) ($5,238,489) ($3,164,985) ($2,296,542) ($2,535,749) ($1,153,922) ($1,502,887) ($299,126)$799,092 $2,298,468 From Table 3Revenue Requirement($6,263,116)To Table 2To Capital ReservesFund Subtotal$0 $34,605,033 $27,015,705 $22,087,258 $19,169,338 $17,080,315 $14,726,851 $13,732,876 $12,373,087 $12,205,207 $13,127,847 $15,553,598Estimated Interest Earnings$0 $387,701 $310,042 $247,065 $207,518 $182,286 $159,947 $143,098 $131,245 $123,548 $127,283 $144,044Ending Balance$42,935,256$34,992,735 $27,325,747 $22,334,323 $19,376,857 $17,262,600 $14,886,798 $13,875,974 $12,504,333 $12,328,755 $13,255,130 $15,697,641YTD estimate from finance fund reserve balanceTarget Balance $9,419,144 $10,800,253 $10,316,534 $10,451,108 $10,673,985 $11,167,855 $11,898,359 $12,291,228 $12,697,548 $13,117,806 $13,552,507 $14,002,176 25% of annual operating expensesCapital ReservesBeginning Balance$2,000,000 $2,020,000 $6,585,479 $7,074,801 $6,582,245 $3,791,043 $2,280,536 $2,942,169 $3,193,659 $3,017,327 $2,394,873Net Cash Funded CIP($8,638,538) ($8,638,601) ($12,739,906) ($13,721,767) ($16,004,078) ($14,701,980) ($12,227,577) ($12,642,262) ($13,070,459) ($13,512,607) ($13,780,313)From Table 5From Revenue Requirements$8,638,538 $13,161,266 $13,161,266 $13,161,266 $13,161,266 $13,161,266 $12,863,226 $12,863,226 $12,863,226 $12,863,226 $12,863,226 To Table 2From Operating Reserves$0$0$0$0$0$0$0$0$0$0$0$0 From AboveFund Subtotal$0 $2,000,000 $6,542,665 $7,006,839 $6,514,300 $3,739,434 $2,250,329 $2,916,185 $3,163,133 $2,986,427 $2,367,946 $1,477,785Estimated Interest Earnings$0 $20,000 $42,813 $67,962 $67,946 $51,608 $30,207 $25,984 $30,527 $30,900 $26,926 $19,363Ending Balance$2,000,000$2,020,000 $6,585,479 $7,074,801 $6,582,245 $3,791,043 $2,280,536 $2,942,169 $3,193,659 $3,017,327 $2,394,873 $1,497,149Target Balance $2,000,000 $2,000,000 $2,065,165 $2,132,452 $2,201,932 $2,273,676 $2,347,758 $2,424,253 $2,503,241 $2,584,802 $2,669,021 $2,755,984 $2 million escalated using CCI (proposed)HF&H Consultants, LLC 6/16/2025 1:45 PMRWC_Water_Model_6Jun2025.xlsx4. ReservesATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A REV: 11-05-25 MI
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