City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00426 2/11/2025 Consent Item 3.
Department of Utilities Annual Development Fee Report for Fiscal Year 2024 File ID: 2025-00426
Location: Citywide
Recommendation: Receive and file the Department of Utilities Annual Development Fee Report for Fiscal Year 2024.
Contact: Pravani Vandeyar, Director (916) 808-3765; [email protected]; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, [email protected]; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected]; Linh Tuyen, Senior Accountant Auditor, (916) 808-5988, [email protected]; Department of Utilities
Presenter: None
Attachments:
1 - Description Analysis
2 - DOU Development Fee Report for Fiscal Year 2023/24
Description/Analysis
Issue Detail: The DOU Development Fee Report for the Water and Sewer (Separated and Combined) Systems is a requirement under the Mitigation Fee Act California Government Code Section 66013 and for the Storm Drainage System under the Mitigation Fee Act California Government Code Section 66006. An annual report for this development fee is required to be prepared and presented to the City Council. The report is to include information on the amount of the fees collected, expenditures and the remaining balance. The City of Sacramento Utilities Department and Development Fee Report for Fiscal Year 2024 are attached.
Policy Considerations: Providing information regarding development fees collected and expenses incurred for projects associated with Water and Sewer development fees is required pursuant to the Mitigation Fee Act.
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that do not constitute a "project" as defined by the California Environmental Quality Act (CEQA) Guidelines Section 15378 (b)(2) and is therefore not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
File ID: 2025-00426 2/11/2025 Consent Item 3.
Sustainability: Assess fees on all projects that require a new water tap or increase in size of an existing tap and on new sewer services within City service areas.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This is an annual development fee report to City Council in compliance with the Mitigation Fee Act.
Financial Considerations: The report provides a comprehensive accounting of the revenues, expenditures, and budgets of the DOU Development Fee for Fiscal Year 2024.
Local Business Enterprise (LBE): Not applicable.
Development Fees Report
Fiscal Year
2024
Adopted by City Council: February 11, 2025
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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TABLE OF CONTENTS
Executive Summary …………………………………………………………………………… 3
Annual Report Requirement for the Water and Sewer Development Funds ..……………. 5
Annual Report Requirement for the Storm Development Fund …………………………… 6
Water Development Fee Fund:
Fund Balance Sheet for fiscal year ending June 30, 2024 ……………………………… 7 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2024………………………………………………….………… 8
Capital Improvement Project Report ………………………………………………….... 9
Sewer Development Fee Fund:
Fund Balance Sheets for fiscal year ending June 30, 2024 ……………………………. 12 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2024 ...…………..…………………………………….………. 13
Capital Improvement Project Report …………………………………………………... 14
Storm Drainage Development Fee Fund:
Fund Balance Sheets for fiscal year ending June 30, 2024 ……………………………. 15 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2024 ...…………..…………………………………….………………. 16 Capital Improvement Project Report …………………………………………………....16
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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EXECUTIVE SUMMARY
The DOU Development Fee Report for the Water and Sewer (Separated and Combined) Systems is a requirement under the Mitigation Fee Act California Government Code Section 66013 and for the Storm Drainage System under the Mitigation Fee Act California Government Code Section 66006. The Report requirements for the Water and Sewer Systems are located on page 6 of this document and Storm Drainage is located on page 7. Supplemental reports have been included to detail the revenues collected and expenditure made on each fund. All financial information is shown for the fiscal year ending June 30, 2024. There are four categories of fees subject to reporting in the DOU 1) Water Development Fee 2) Sewer and Combined Sewer System Development Fee and 3) Storm Drainage Development Fee. The Water Development Fee is assessed on all projects that require a new water tap or increase in size of an existing tap. The Sewer System Development Fee is based on new sewer service tap size in City sewer service areas, excluding the Combined Sewer System. The Combined Sewer Development fee is assessed on every customer requesting a connection to the combined sewer system and is based on Equivalent Single Family Dwelling Units (ESD). Projects which are subject to the Combined Sewer Development Fee are not subject to the Sewer System Development Fee. The Storm Drainage Development fee is based on the increased impervious area that drains to the City gravity or pumped Storm Drainage System. The revenue collected for the Water Development Fee Fund (6001), the Sewer System Development Fee Fund (6002), and the Storm Drainage Fee Fund (6003) consisted of interest earned and fees collected. Below is a breakdown of each development revenue by fiscal year: Fiscal Year Water Development Fee Sewer and Combined Sewer Development Fee Storm Drainage Development Fee 2024 $3,255,831 $1,463,509 $906
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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Below is the list of Water, Sewer and Storm Drainage Development Fees used to calculate fees from July 1st, 2023, through June 30, 2024.
Water Development Fees
Domestic and Irrigation Water Services
¾" meter $4,898.50
1" meter $6,195.89
1 ¼" meter $9,218.01
1 ½" meter $12,207.38
2" meter $22,194.76
3" meter $55,867.80
4" meter $114,362.62
6" meter $214,967.90
8" meter $344,592.68
10" meter $870,633.32
Sewer Development Fees
Wastewater System Development Fees
Based on Equivalent Single Family Dwelling Units (ESD)
Based on ESDs $902.63 per each ESD
1 ESD = 310 gallons per day
Combined Sewer Service Area
Based on Equivalent Single Family Dwelling Units (ESD)
Development Size Fee Amount
First 25 ESDs $2,066.46 per each ESD
26 or more ESDs $5,260.31 per each ESD exceeding 25
Drainage Development Fee
Based on Impervious Area
Drainage Basin Type Fee Amount
Combined Sewer Service Area $1.37 per square foot of increased imperviousness (offset by the Combined
Sewer Service Area Sewer Development Fee)
Pumped Basin* $0.06 per square foot increased
imperviousness
Gravity Basin* $0.04 per square foot of increased
imperviousness
*Applies to areas of the Combined Sewer System with separated City drainage basins.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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ANNUAL REPORT REQUIREMENTS FOR WATER AND SEWER FEES
An annual report for the Water and Sewer (Separated and Combined Sewer) Development Fees are required under the Mitigation Fee Act California Government Code Section 66013. The Water Development Fee revenue and expenditures are accounted for in Fund 6001. The Sewer and Combined Sewer Development Fee revenue and expenditures are accounted for in Fund 6002. The information required is presented below and includes the referenced attachments:
Al. A description of the charges deposited in the fund (Page 3).
A2. The beginning and ending balance of the fund and the interest earned from investment of money in the fund and Balance Sheets for fiscal year ending June 30, 2024 (Pages 7 and 12); Statement of Revenues, Expenditures, and Changes in Fund Balance for the fiscal year ending June 30, 2024 (Pages 8 and 13).
A3. (A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used (Pages 9-11 and 14) for expenditures from the DOU Development Funds (Water) 6001 and (Sewer) 6002. (B) Each public improvement on which charges were expended that was completed during that fiscal year (Pages 9-11 and 14). (C) Each public improvement that is anticipated to be undertaken in the following fiscal year (Pages 11 and 14).
A4. A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. There were no interfund transfers or loans for the fiscal year ending June 30, 2024 (Water) fund 6001 and (Sewer) 6002.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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ANNUAL REPORT REQUIREMENTS FOR STORM DRAINAGE FEES
An annual report on the Storm Drainage Development Fees is required under the Mitigation Fee Act California Government Code Section 66006. The Storm Drainage Development Fee revenue and expenditure are accounted for in Fund 6003. The information required is presented below and includes the reference attachments:
A1. A brief description of the type of fee in the account or fund (Page 3).
B1. The amount of the fee (Page 15 and Page 16).
C1. The beginning and ending balance of the account or fund (Page 15 and Page 16) D1. The amount of the fees collected, and the interest earned (Page 15 and Page 16) E1. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. There were no fees expended in the fiscal year ending June 30, 2024.
F1. 1) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. There were no construction improvements in the fiscal year ending June 30, 2024.
2) An identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction began on the approximate date noted in the previous report. There were no construction improvements in the fiscal year ending June 30, 2024.
3) For a project identified pursuant to clause (ii) for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction. There were no construction improvements in progress for the fiscal year ending June 30, 2024.
G1. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. There were no interfund transfers or loans for the fiscal year ending June 30, 2024 (Storm Drainage) fund 6003.
H1. The amount of refunds made pursuant to subdivision (e) of Section 66001, the number of persons or entities identified to receive those refunds, and any allocations pursuant to subdivision (f) of Section 66001. There were no refunds issued in the fiscal year ending June 30, 2024.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
2024ASSETSCurrent Assets Receivables, net Accounts 455$ Loans - Interest - Total Current Assets 455$ Non Current Assets Cash and Investments held by the City 49,617$ Loans Receivable - Capital Assets: Land 1,729 Buildings and improvements 820 Machinery and equipment 680 Transmission and Distribution Systems 3,429 Construction in Progress 21,458 Less: Accumulated depreciation/amortization (646) Total Non-Current Assets 77,087$ Total Assets 77,542$ LIABILITIESCurrent Liabilities Accounts Payable 38$ Unearned Revenue - Total Current Liabilities 38$ Noncurrent Liabilities Water fee credits 12$ Total Noncurrent Liabilities 12$ NET POSITION Net investment in capital assets 27,432$ Capital Projects 50,060 Total Net Position 77,492$ Total Liabilities and fund balances 77,542$
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DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2024 (in thousands)
Operating Revenue -$ Total Operating Revenue -$ Operating Expenses Depreciation and Amortization 168$ Total Operating Expenses 168$ Operating Income (loss)(168)$ Non-Operating Revenue Interest and Investment Revenue 836$ Total Nonoperating Revenue 836$ Income (loss) before capital contributions, transfers, and special item668$ Capital Contributions 3,989$ Transfers in 1,118 Change in Net Position 5,775$ Total Net position, beginning of the year 71,717$ Total Net position, end of year77,492$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 2024
For the fiscal year ending June 30, 2024, the following open projects incurred expenses:
Project Name: Water Master Plan Program – Project ID I14510200 –
Project Description - The Water Master Plan Program is an on-going program that includes the planning of the major transmission mains pumping and storage facilities and water supply. The project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2024 $0 $0
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$26,847 $6,679 $0 $20,168 25%
Project Name: RiverArc Project– Project ID I14510205
Project Description - The River Arc Project is also known as the Sacramento River Regional Water Reliability Project. The purpose of this project is to divert water through existing or new intake(s) from the Sacramento River to offset water currently diverted from the American River. The water will be delivered through new raw water pipelines to a new regional water treatment plant and distribute the treated surface water through new and existing pipelines to the Parties. The project is scheduled to be completed in the fiscal year 2030.
Fiscal Year Budget Expenses
2024 $0 $0
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$63,248 $56,250 $0 6,998 89%
Project Name: Shasta Park 4MG Reservoir and Pump Station Project - Project ID Z14005400
Project Description –The Shasta Park 4MG Reservoir and Pump Station project is the construction, operation, and maintenance of an above-ground 4 million-gallon (MG) water reservoir, two groundwater wells, a water treatment system, and a pump station. The project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2024 $0 $0
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2024
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$4,366,918 $4,366,918 $0 $0 100%
Project Name: Shasta Park Water Facility - Project ID Z14005402
Project Description –The Shasta Park Water Facility project is the construction of Shasta Park’s 4MG reservoir and the pump station. The project was completed in the fiscal year 2024.
Fiscal Year Budget Expenses
2024 $0 $13,331.58
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$745,241 $16,710,951 $13,331.58 $198,454 99%
Project Name: Wholesale Wheeling Connection Fee Improvements - Project ID Z14006700
Project Description –Design and construct needed for pipelines and meter vaults to provide wholesale surface water to agencies within the City of Sacramento’s Place of use. The project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2024 $0 $0
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$745,241 $ 391,826 $0 $ 353,415 53%
Project Name: Water+ Program Project ID: Z14190100
Project Description: The Sacramento River Water Treatment Plant (SRWTP) was constructed in the 1920s and 1930s and will require ongoing rehabilitation and replacement of older components at the plant, in addition to expanding existing capacity to meet future water demands. The project will improve water treatment reliability, the development for necessary improvements and to provide treatment capacity to meet future water demands.
Fiscal Year Budget Expenses
2024 $1,498,606 $0
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2024
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$1,498,606 $0 $0 $1,498,606 0%
Project Name: Water Sup Expansion Pre-Design - Project ID: Z14190102
Project Description: The Water Supply Expansion Pre-Design project is the conceptual design, CEQA, permitting support services, and public outreach for the Sacramento River Water Treatment Plant Expansion Project (SRWTP). The initial Council award is limited to conceptual design and draft EIR (Phase 1). Phase 2 will complete the EIR and provide 10% of the design. The project is scheduled to be completed in the fiscal year 2028.
Fiscal Year Budget Expenses
2024 $0 $666,032
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$8,159,000 $3,819,809 $666,032 $3,673,159 55%
Project Name: Water + Property Acquisition- Project ID: Z14190103
Project Description: The Water Supply Expansion Pre-Design project is the conceptual design, CEQA, permitting support services, and public outreach for the Sacramento River Water Treatment Plant Expansion Project (SRWTP). The initial Council award is limited to conceptual design and draft EIR (Phase 1). Phase 2 will complete the EIR and provide 10% of the design. The project is scheduled to be completed in the fiscal year 2026.
Fiscal Year Budget Expenses
2024 $1,394 $1,784
Total
Budget
Prior
Expenses
FY24 Budget
Remaining
% Funded
$2,256,246 $2,072,849 $1,784 $181,613 92%
Future Projects anticipated for the Water Development Fee Fund (Fund 6001) for the Fiscal Year ending June 30, 2025 include the Water+ Program (Z14190100) estimated at $5,400,000.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
2024ASSETSCurrent Assets Receivables, net Accounts 1,025$ Loans - Interest - Total Current Assets 1,025$ Non Current Assets Cash and Investments held by the City 6,898$ Loans Receivable - Capital Assets: Land - Building and improvements - Machinery and equipment - Transmission and Distribution Systems 23,686 Construction in Progress - Less: Accumulated depreciation/amortization (850) Total Non-Current Assets 29,734$ Total Assets 30,759$ LIABILITIESCurrent Liabilities Accounts Payable 692$ Unearned Revenue - Total Current Liabilities 692$ Noncurrent Liabilities Wastewater fee credits 7,764$ Total Noncurrent Liabilities 7,764$ NET POSITION Net investment in capital assets 14,386$ Restricted Capital projects 7,917 Total Net Position 22,303$ Total Liabilities and fund balances 30,759$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
2024Revenues: Operating Revenue -$ Total Operating Revenue -$ Operating Expenses Services and supplies 200$ Depreciation and Amortization 237$ Total Operating Expenses 437$ Operating Income (loss)(437)$ Non-Operating Revenue Interest and Investment Revenue 167$ Total Nonoperating Revenue 167$ Income (loss) before capital contributions and transfers(270)$ Capital Contributions 1,295 Transfers in 325 Change in Net Position 1,350$ Total Net position, beginning of the year 20,953$ Total Net position, end of year22,303$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEES PROJECT EXPENSES FOR FISCAL YEAR ENDING JUNE 30, 2024
For the fiscal year ending June 30, 2024, the following open projects incurred expenses:
Project Name: 3rd St Relief Sewer Project - Project ID: X14010107
Project Description: This project is to provide relief for increased sanitary sewer flows from major planned development in the Richards Area and Downtown Railyards. The City has determined that these additional flows require mitigation through the construction of a relief in 3rd Street. The project was completed in August 2023.
Fiscal Year Budget Expense
2024 $15,005 $0
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$22,687,805 $22,687,805 $0 $0 100%
Project Name: 21st St Relief Sewer Project - Project ID: X14120306
Project Description: This project will remove 235 LF of 8-inch combined sewer main on 21st Street between Rice Alley and S Street (MH908EE15 to MH904EE15) and replace it with 18-inch combined sewer main in the reverse direction. It also includes replacing 5 sewer manholes and performing a slurry seal over the entire street due to this work needing to be performed within the City’s 5-year paving moratorium. The project is scheduled to be completed in September 2024.
Fiscal Year Budget Expense
2024 $449,999 $197,855
Total
Budget
Prior
Expenses
FY24
Expenses
Budget
Remaining
% Funded
$449,999 $0 197,855 $252,144 34%
Future projects anticipated for the Sewer Development Fee Fund (Fund 6001) for the Fiscal Year ending June 30, 2025 include the Combined Collection System Rehabilitation and Replacement Program (X14170100) estimated at $500,000.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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STORM DRAINAGE DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
2024ASSETSCurrent Assets Receivables, net Accounts -$ Loans -$ Interest -$ Total Current Assets -$ Non Current Assets Cash and Investments held by the City 1$ Loans Receivable Capital Assets: Land - Building and improvements - Machinery and equipment - Transmission and Distribution Systems - Construction in Progress - Less: Accumulated depreciation/amortization - Total Non-Current Assets 1$ Total Assets 1$ LIABILITIESCurrent Liabilities Accounts Payable - Unearned Revenue - Total Current Liabilities -$ Noncurrent Liabilities Sewer fee credits -$ Total Noncurrent Liabilities -$ NET POSITION Net investment in capital assets -$ Restricted Capital projects -$ Other programs 1 Total Net Position 1$ Total Liabilities and fund balances 1$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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STORM DRAINAGE DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2024
(in thousands)
2024Revenues: Operating Revenue -$ Total Operating Revenue -$ Operating Expenses Depreciation and Amortization Total Operating ExpensesOperating Income (loss)Non-Operating Revenue Interest and Investment Revenue Total Nonoperating Revenue Income (loss) before capital contributions and transfers-$ Capital Contributions 1 Transfers in Change in Net Position 1$ Total Net position, beginning of the year Total Net position, end of year1$
As of the fiscal year ending June 30, 2024, there were no capital improvements or construction in progress for Storm Drainage Fund 6003. The fee was implemented in January of 2024 with only $906.00 collected in revenue for the fiscal year.