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Financial Plan
<br />Based on the projected total revenue and necessary costs to be recovered during the study period, RDN
<br />built a financial plan that will generate sufficient revenues for the day-to-day operation and annual
<br />PAYGO and make appropriate contributions to reserves. The City currently has a projected ending cash
<br />balance of $18.3 million in FY 2025, which is the beginning balance for FY 2026. Table 80 shows the
<br />status quo sewer pro forma with no revenue adjustments and the resulting ending balances based on
<br />the revenues and expenses outlined in this section.
<br />Table 80. Status Quo Financial Pro Forma for City of Santa Ana Sewer System,
<br />FY 2026 to FY 2031
<br />Rate Increase
<br />0.0%
<br />0.0%
<br />0.0%
<br />0.0%
<br />0.0%
<br />0.0%
<br />Rate Month Implemented
<br />Cash Position Opening Balance
<br />$
<br />FY 2026
<br />18,318,613
<br />FY 2027
<br />$ 15,146,513
<br />FY 2028
<br />$ 10,729,669
<br />FY 2029
<br />$ 5,939,611
<br />FY 2030
<br />$ 790,008
<br />FY 2031
<br />$ (4,734,745)
<br />Revenues
<br />Sewer Rate Revenue
<br />$
<br />8,922,314
<br />$ 8,939,774
<br />$ 8,951,412
<br />$ 8,969,036
<br />$ 8,986,813
<br />$ 8,999,084
<br />Adjusted Sewer Rate Revenue
<br />Other Operating Revenue
<br />$
<br />$
<br />-
<br />450,000
<br />$ -
<br />$ 450,000
<br />$ -
<br />$ 450,000
<br />$ -
<br />$ 450,000
<br />$ -
<br />$ 450,000
<br />$ -
<br />$ 450,000
<br />Non -Operating Revenue
<br />$
<br />400,000
<br />$ 400,000
<br />$ 400,000
<br />$ 400,000
<br />$ 400,000
<br />$ 400,000
<br />Investment Revenue
<br />Property Tax Revenue
<br />$
<br />-
<br />$ -
<br />$ -
<br />$ -
<br />$ -
<br />$ -
<br />Total Revenues
<br />$
<br />9,772,314
<br />$ 9,789,774
<br />$ 9,801,412
<br />$ 9,819,036
<br />$ 9,836,813
<br />$ 9,849,084
<br />Operating Expenses
<br />Net Operating Revenue
<br />$
<br />$
<br />8,759,440
<br />1,012,874
<br />$ 9,132,875
<br />$ 656,898
<br />$ 9,517,728
<br />$ 283,684
<br />$ 9,894,897
<br />$ (75,861)
<br />$ 10,287,824
<br />$ (451,011)
<br />$ 10,671,969
<br />$ (822,885)
<br />.......................................................................................................................
<br />Current Debt Service
<br />Proposed Debt Service
<br />$
<br />$
<br />73,742
<br />-
<br />$ 73,742
<br />$ -
<br />$ 73,742
<br />$ -
<br />$ 73,742
<br />$ -
<br />$ 73,742
<br />$ -
<br />$ 73,742
<br />$ -
<br />Total Operating and Debt Service
<br />$
<br />8,833,182
<br />$ 9,206,618
<br />$ 9,591,470
<br />$ 9,968,639
<br />$ 10,361,566
<br />$ 10,745,711
<br />Net Revenues Before CIP
<br />$
<br />939,132
<br />$ 583,156
<br />$ 209,942
<br />$ (149,603)
<br />$ (524,753)
<br />$ (896,627)
<br />Capital Expenditure
<br />$
<br />4,111,232
<br />$ 5,000,000
<br />$ 5,000,000
<br />$ 5,000,000
<br />$ 5,000,000
<br />$ 5,000,000
<br />........................................................................................................................
<br />Net Income
<br />Ending Balance
<br />$
<br />$
<br />(3,172,100)
<br />15,146,513
<br />$ (4,416,844)
<br />$ 10,729,669
<br />$ (4,790,058)
<br />$ 5,939,611
<br />$ (5,149,603)
<br />$ 790,008
<br />$ (5,524,753)
<br />$ (4,734,745)
<br />$ (5,896,627)
<br />$ (10,631,371)
<br />_ 52
<br />ity ounce 23 - 79 3/17/2026
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