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<br /> SIX-YEAR FORECAST: ENTERPRISE FUNDS
<br /> WATER POLLUTION CONTROL PLANT ENTERPRISE FUND
<br /> The Water Pollution Control Plant (WPCP) Enterprise Fund provides the funding for the regulation,
<br /> collection, treatment and disposal of wastewater from all residential and commercial sources. This
<br /> includes operation and maintenance of the Water Pollution Control Plant, 125 miles of sanitary sewer
<br /> pipelines, 15 remote sewage pump stations and the inspection and maintenance of the City's storm
<br /> water collection system.
<br /> Analysis
<br /> The WPCP rehabilitation project boasts a total project cost of approximately $55 million. The City
<br /> was approved for a $43 million project loan (term of 20 years at a 2.6% interest rate) from the State
<br /> Revolving Loan Fund with the State Water Resources Control Board (SWRCB). Fund balance will
<br /> fund a portion of the project and approved rates will fund the project debt service.
<br /> In accordance with Prop 218 procedures, the Council approved a 5% maximum rate increase for
<br /> residential rate payers beginning 2010-11 and ending 2014-15. The rate increases ranged from 3%
<br /> to 4%. For the new fiscal year and subsequent years, revenue is projected to grow by 1% to 2%.
<br /> Another rate study was conducted in 2019, and San Leandro residents will be voting on whether to
<br /> approve increased rates in 2020.
<br /> Water Pollution 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
<br /> Control Fund 593 Actual Actual Adopted Projected Projected Projected Projected Projected Projected
<br /> Beginning Fund Balance 47,885,502 50,067,753 50,564,652 49,384,788 48,996,411 47,197,336 45,177,837 43,020,023 40,667,177
<br /> Revenue
<br /> Sewer Service Charges 11,907,468 11,890,380 11,695,000 12,234,800 12,534,800 12,630,800 12,728,720 12,828,598 12,930,474
<br /> Other Revenues 1,161,512 684,343 760,000 760,000 760,000 765,000 770,100 775,302 780,608
<br /> SWRCB Loan - - 850,587 504,812 504,812 504,812 504,812 504,812 504,812
<br /> General Fund Loan Repayment - - - - - - - - -
<br /> Interest Income 174,794 260,365 174,460 360,000 360,000 310,000 310,000 260,000 260,000
<br /> Total Revenues 13,243,774 12,835,088 13,480,047 13,859,612 14,159,612 14,210,612 14,313,632 14,368,712 14,475,894
<br /> Expenditures
<br /> Personnel 3,761,757 5,025,371 5,591,154 5,510,536 5,879,454 6,061,267 6,211,716 6,369,646 4,446,619
<br /> Non-Personnel/Transfers 4,605,013 4,439,928 6,239,093 5,817,629 7,194,220 7,283,830 7,374,717 7,466,900 7,466,899
<br /> Debt Service 1,110,538 1,067,499 2,765,864 2,765,864 2,765,864 2,765,864 2,765,864 2,765,864 2,765,864
<br /> Capital 1,584,214 1,805,390 63,800 153,960 119,149 119,149 119,149 119,149 119,149
<br /> Total Expenditures 11,061,523 12,338,189 14,659,911 14,247,989 15,958,687 16,230,110 16,471,446 16,721,559 14,798,531
<br /> Annual Surplus/(Shortfall) 2,182,251 496,899 (1,136,366) (333,333) (1,799,075) (2,019,498) (2,157,316) (2,352,343) (322,636)
<br /> Ending Fund Balance 50,067,753 50,564,652 49,384,788 48,996,411 47,197,336 45,177,837 43,020,023 40,667,177 40,344,540
<br /> Debt Service Reserve 0 0 0 0 0 0 0 0 0
<br /> Ending Fund Balance(adjusted 50,067,753 50,564,652 49,384,788 48,996,411 47,197,336 45,177,837 43,020,023 40,667,177 40,344,540
<br /> Assumptions
<br /> • Assumes all WPCP revenues projected to be relatively flat, 1% growth.
<br /> • 2016-17 reflects commencement of annual debt service for state revolving loan (SWRCB) debt
<br /> reserve established in 2013-14.
<br /> • WPCP available Fund Balance was reduced by $6,000,000 in 2011-12 from the loan to the
<br /> General Fund for refinancing the CalPERS Public Safety Side Fund.
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