75A - PH - WATER AND SEWER RATES

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2019 Water, Recycled Water, and Sewer Rate Study 2. Financial Plan 2.2.4 Non -Rate Revenues In addition to rate revenue, the Water and Sewer Enterprises receive a limited amount of non -rate revenue. The Water Enterprise collects revenues related to miscellaneous service fees, fire line service, cell tower rental revenues, rental of property, and interest revenue on investments. The Sewer Enterprise collects a very small amount of revenue from penalties and service charges and other miscellaneous recoveries. Projections of all non -rate revenues were based on FY 2018/19 budgeted revenues, with the exception of interest income which was calculated annually based upon projected average fund balances and assumed interest rates (see Section 2.2.8). Budgeted and projected non -rate revenues are listed in detail in Schedule 2 of Appendix A for the Water Enterprise and Schedule 7 of Appendix B for the Sewer Enterprise. 2.2.5 Operation, Maintenance and Existing Debt Service Expenditures The Water & Sewer Enterprises' operating expenses include all salaries, benefits, maintenance, internal transfers, utility costs and other miscellaneous costs. The Water Enterprise also incurs water purchases costs and debt service expenses on an existing, outstanding loan (see Section 2.2.9). For both the Water and Sewer Enterprises the financial plan started with actual expenditures from FY 2017-18 (as opposed to budget values) and escalated those costs for future years (see Section 2.2.6). Current and projected operating and debt expenses are provided in detail in Schedule 3 of Appendix A for the Water Enterprise and Schedule 8 of Appendix B for the Sewer Enterprise. Actual expense categories for FY 2017/18 are depicted in Figure 2-1 and Figure 2-2. Debt Service 2% Clean Water Compliance 2% Other Variable O&M 1% Fixed Operations & Maintenanoe Costs 17% Figure 2-1: FY 2017/18 Water Expense Categories City of Santa Ana Stantec 19