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<br />SEWER RATE STUDY I City of Santa Ana, CA
<br />The Sewer Enterprise's CIP includes recommendations for expenditures totaling $18.4 million over the
<br />next 5 years. As part of the financial plan analyses, an annual inflation allowance of 3 percent was
<br />included in the above capital improvement project costs.
<br />Capital Fund Financing
<br />A proposed financing plan for the Sewer Enterprise's CIP is shown in Table 9 and Table 10. Table 9
<br />summarizes the plan in the event that the City elects to forego revenue adjustments and cash finance all
<br />activities (Status Quo Scenario). Table 10 is the proposed financing under the assumption that the City
<br />will elect to propose revenue adjustments (Scenario 1). Financing for the CIP is anticipated to come from
<br />a combination of funds on hand, transfers from water sales revenues derived from rates, grants, and
<br />bond proceeds. The Sewer Enterprise currently maintains a capital fund that is used to finance CIP
<br />projects as well as to separate the commingling of rate and connection funds. The capital fund generates
<br />revenue from developer connection fees, transfers and debt proceeds (as appropriate). With new
<br />development in the City slowing dramatically, the Sewer Enterprise will depend on rate revenue and
<br />bond proceeds (as necessary) to execute planned CIP projects.
<br />Table 9: CIP Financing Plan - Status Quo Scenario
<br />Beginning Balance
<br />1,792.3
<br />1,518.1
<br />1,109.7
<br />1,397.5
<br />2,448.8
<br />2,360.7
<br />Sources of Funds
<br />1,530.8
<br />2,674.8
<br />3,477.9
<br />2,722.7
<br />3,868.2
<br />5,706.3
<br />Debt Proceeds
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />Transfers from Operating Fund
<br />1,246.8
<br />2,250..0
<br />3,750.0
<br />3,750.0
<br />3,750.0
<br />3,750.0
<br />Interest Income
<br />9.8
<br />16.4
<br />15.7
<br />24.0
<br />30.1
<br />17.4
<br />Total Sources of Funds
<br />$1,256.6
<br />$2,266.4
<br />$3,765.7
<br />$3,774.0
<br />$3,780.1
<br />$3,767.4
<br />Uses of Funds
<br />Capital Improvements
<br />1,530.8
<br />2,674.8
<br />3,477.9
<br />2,722.7
<br />3,868.2
<br />5,706.3
<br />Debt Issuance Expenses
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />0.0
<br />Total Uses of Funds
<br />$1,530.8
<br />$2,674.8
<br />$3,477.9
<br />$2,722.7
<br />$3,868.2
<br />$5,706.3
<br />Ending Balance
<br />1,518.1
<br />1,109.7
<br />1,397.5
<br />2,448.8
<br />2,360.7
<br />421.8
<br />[INTENTIONALLY LEFT BLANK]
<br />65B -191
<br />NOVEMBER ;1014
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