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24 <br />sf,4Vt:R w, rE s iuo t I City of Santa Ana, CA <br />Black & Veatch notes that the revenues on Table 4 reflect gross sewer receipts and are 5 percent higher <br />than those figures reported in the City's Comprehensive Financial Annual Report (CAFR). It is the City's <br />policy to direct 5 percent of gross revenues to the National Pollutant Discharge Elimination System <br />(NPDES) Fund to pay for the Sewer Enterprise's share of cost recovery. This transfer of revenues has first <br />priority on all Sewer Enterprise obligations. The total revenues less this 5 percent charge foot to the <br />City's reported CAFR numbers. <br />Table 4: Revenues under Existing Rates <br />Single Family Residential <br />Multi - Family Residential <br />Commercial <br />Industrial <br />Institutional <br />2,143.0 <br />2,103.7 <br />2,103.7 <br />2,103.7 <br />2,103.7 <br />2,143.0 <br />1,660.6 <br />1,631.9 <br />1,631.9 <br />1,631.9 <br />1,631.9 <br />1,660.6 <br />974.0 <br />987.5 <br />987.5 <br />987.5 <br />987.5 <br />974.0 <br />224.2 <br />227.2 <br />227.2 <br />227.2 <br />227.2 <br />224.2 <br />271.7 <br />275.6 <br />275.6 <br />275.6 <br />275.6 <br />271.7 <br />Irrigation <br />3.7 <br />10.7 <br />10.7 <br />10.7 <br />10.7 <br />3.7 <br />Outside City <br />0.9 <br />0.9 <br />0.9 <br />0.9 <br />0.9 <br />0.9 <br />Reclaim Water <br />2.8 <br />30.5 <br />30.5 <br />30.5 <br />30.5 <br />2.8 <br />Total Revenues <br />$5,280.9 <br />$5,268.0 <br />$5,268.0 <br />$5,268.0 <br />$5,268.0 <br />$5,280.9 <br />Operation and Maintenance Projections <br />In order to adequately adjust rates, it is necessary to <br />project operation and maintenance (0 &M) expenses. <br />Summarized in Table 5 are Sewer's projected 0 &M <br />expenditures. These expenditures include costs related to <br />personnel (including additional staff), contract services, <br />operating supplies, utilities and general administrative. The <br />forecasted expenditures are based Black & Veatch and City <br />staff's expertise and knowledge. The table to the right <br />summarizes key assumptions for inflation rates used in the <br />0 &M expense projections. The levels of adjustment <br />illustrated on the right are consistent with recent increases <br />seen throughout the area. There are two one -time increases in FY 15/16 under machinery to cover <br />vehicle and heavy equipment needs and under contract services. This latter adjustment reflects the <br />City's move to comply with the Prevailing Wage laws in order to qualify for grants and low- interest loans <br />administered by the State. The projected impact to contract services to address the Prevailing Wage <br />laws is 10 percent. <br />Total C &M (including routine capital outlay) is projected to increase from $4,622,700 in FY 14/15 to <br />$5,126,300 in FY 18/19. <br />65B -183 <br />NOVEMBER 2014 <br />