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Table 22. Annual Other Operating Revenue by Source, FY 2026 to FY 2031
<br />53709
<br />Connection Charge
<br />$409,630
<br />$409,630
<br />$409,630
<br />$409,630
<br />$409,630
<br />$409,630
<br />53715
<br />Re -Connection Charge
<br />$28,300
<br />$28,300
<br />$28,300
<br />$28,300
<br />$28,300
<br />$28,300
<br />53716
<br />After Hours Service Charge
<br />$8,900
<br />$8,900
<br />$8,900
<br />$8,900
<br />$8,900
<br />$8,900
<br />53717
<br />Tag Fee
<br />$17,000
<br />$17,000
<br />$17,000
<br />$17,000
<br />$17,000
<br />$17,000
<br />53720
<br />Penalties & Service Charge
<br />$3,013,060
<br />$3,013,060
<br />$3,013,060
<br />$3,013,060
<br />$3,013,060
<br />$3,013,060
<br />Recycled
<br />Water Rates
<br />$397,490
<br />$397,490
<br />$397,490
<br />$397,490
<br />$397,490
<br />$397,490
<br />Total
<br />$3,874,380
<br />$3,874,380
<br />$3,874,380
<br />$3,874,380
<br />$3,874,380
<br />$3,874,380
<br />Table 23. Annual Non -Operating Revenue by Source, FY 2026 to FY 2031
<br />53722 NPDES Water $1,238,000
<br />$1,238,000
<br />$1,238,000
<br />$1,238,000
<br />$1,238,000
<br />$1,238,000
<br />57010 Miscellaneous Recoveries $250,000
<br />$250,000
<br />$250,000
<br />$250,000
<br />$250,000
<br />$250,000
<br />57363 Cell Tower Lease Agreement $20,000
<br />$20,000
<br />$20,000
<br />$20,000
<br />$20,000
<br />$20,000
<br />Total $1,508,000
<br />$1,508,000
<br />$1,508,000
<br />$1,508,000
<br />$1,508,000
<br />$1,508,000
<br />The system's total revenue for the study period is estimated to be approximately $76.8 to $77.5 million
<br />annually under the current rates. Table 24 shows the projected revenue flow for the study period (FY
<br />2026 - FY 2031) without any revenue adjustments, projections are based on water use and customer
<br />growth projections as well as other operating and non -operating revenue estimates provided by City staff.
<br />Table 24. Water Utility Operating Forecast, FY 2026 to FY 2031
<br />Revenue from Rates
<br />Fixed Charges $25,768,099 $25,826,098 $25,862,734 $25,921,161 $25,981,905 $26,018,714
<br />Variable Charges $45,648,870 $45,759,818 $45,833,145 $45,945,700 $46,062,761 $46,134,404
<br />Rate Revenue Total $71,416,969 $71,585,915 $71,695,879 $71,866,862 $72,044,666 $72,153,118
<br />Other Operating Revenues $3,874,380 $3,874,380 $3,874,380 $3,874,380 $3,874,380 $3,874,380
<br />Non -operating Revenues $1,508,000 $1,508,000 $1,508,000 $1,508,000 $1,508,000 $1,508,000
<br />Total $76,799,349 $76,968,296 $77,078,259 $779249,242 $77,427,046 $779535,498
<br />Operating and Maintenance (O&M) Expense
<br />The water utility's budget includes $73.5 million in operating expenses for FY 2026. Total operating
<br />expenses are expected to increase approximately 4.0 percent per year based on the application of
<br />specific inflation factors to each budget line item. By the end of the five-year rate setting period, total
<br />operating expenses are expected to reach $89.4 million. Table 25 shows projected operating expenses
<br />for the rate setting period by budget category.
<br />City of Santa Ana - 2026 Water and Sewer Rate Study
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