Laserfiche WebLink
7.1.F. - Page 28 <br /> Projected Revenues, Expenses, and Debt Service Coverage <br /> The following tables show cash flow assumptions and projections of the City's revenues, <br /> expenses, and net revenues. The projections include the City's estimated share of debt service <br /> for the Authority's CIP. The projections were developed by Bartle Wells Associates based on <br /> information provided by the City and the Authority, and a number of assumptions including those <br /> listed below. While the City believes the estimates and projections shown are reasonable, no <br /> assurance can be given that the results shown will be achieved. <br /> General Assumptions <br /> 1. Beginning fund balance as of June 30, 2013 based on the City's fund balance <br /> analysis and excluding rollover CIP funds (budgeted in prior years for projects that are not yet <br /> complete), encumbrances, and restricted reserves. <br /> 2. Growth in sewer service connections is estimated at 0.25% per year or <br /> approximately 1% every four years. <br /> 3. City cost escalation is projected at 4% per year. <br /> 4. SVCW wastewater treatment costs are projected based on SCVW projections, <br /> which account for roughly 5% operating cost escalation per year on average. <br /> Revenues <br /> 1. Sewer Service Charges within the City are projected based on fiscal year 2012- <br /> 13 actual revenues adjusted for adopted and projected rate increases and growth; revenues for <br /> fiscal year 2013-14 assume the fiscal year 2013-14 rate increase becomes effective August 1, <br /> with future rate increases effective July 1 of each year. Sewer Service Charge revenues <br /> projected for fiscal year 2012-13 differ from the City's budget because they are based on more <br /> up-to-date information. <br /> 2. Sewer Service Charges from the contract agencies are projected based on <br /> agreements with each agency and assume a 6-month lag in payments due for each fiscal year. <br /> 3. Facilities and connection fee revenues are projected at $200,000 in fiscal year <br /> 2013-14 and future years. <br /> 4. Interest income is estimated based on beginning fund balances multiplied by the <br /> projected interest rate shown for each year. <br /> Expense Assumptions <br /> 1. Operating expenses are based on the fiscal year 2013-14 budget and escalate at <br /> the annual rate of 4%. <br /> 2. Sanitary Sewer Maintenance expenses include $165,000 in potential additional <br /> staffing costs starting fiscal year 2017-18. <br /> 3. SVCW payments are based on SVCW's fiscal year 2013-14 Budget with <br /> operating and maintenance costs broken out separately from SCVW debt service and capital <br /> A-20 <br />