Study Year Number Current
Budget1 1 2 3 4 5 6 7 8 9 10
Calendar Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Rate ($ per EDU -Monthly) 5.45$ 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 18.05$ 18.41$ 18.78$ 19.16$ 19.54$ 200.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% EDUs 60,558 60,558 61,164 61,776 62,393 63,017 63,647 64,284 64,927 65,576 66,232 Operations
Operating Revenue
City of Salinas Rate Revenue 3,960,518$ 11,881,554$ 12,240,377$ 12,610,037$ 12,990,860$ 13,383,184$ 13,787,356$ 14,203,734$ 14,632,687$ 15,074,594$ 15,529,847$ Investment Interest
Net Income Carry Forward from Prior Year 0 0 0 0 0 0 0 0 0 0 0 Inspection Fees
Total Operating Revenue 3,960,518$ 11,881,554$ 12,240,377$ 12,610,037$ 12,990,860$ 13,383,184$ 13,787,356$ 14,203,734$ 14,632,687$ 15,074,594$ 15,529,847$ 136,334,229$ Operational Expenses
Salaries and Benefits 1,954,090$ 2,100,647$ 2,258,195$ 2,427,560$ 2,609,627$ 2,805,349$ 3,015,750$ 3,241,931$ 3,485,076$ 3,746,457$ 4,027,441$ Supplies and Materials 241,000$ 259,075$ 278,506$ 299,394$ 321,848$ 345,987$ 371,936$ 399,831$ 429,818$ 462,055$ 496,709$ Outside Services 388,000$ 417,100$ 448,383$ 482,011$ 518,162$ 557,024$ 598,801$ 643,711$ 691,989$ 743,889$ 799,680$ Other Charges 397,500$ 427,313$ 459,361$ 493,813$ 530,849$ 570,663$ 613,462$ 659,472$ 708,932$ 762,102$ 819,260$ NPDES Allocation 536,920$ 577,189$ 620,478$ 667,014$ 717,040$ 770,818$ 828,629$ 890,777$ 957,585$ 1,029,404$ 1,106,609$ Total Operational Expenses 3,517,510$ 3,781,323$ 4,064,922$ 4,369,792$ 4,697,526$ 5,049,841$ 5,428,579$ 5,835,722$ 6,273,401$ 6,743,906$ 7,249,699$ 53,494,711$ Net Operating Income before Debt Service 443,008$ 8,100,231$ 8,175,455$ 8,240,245$ 8,293,334$ 8,333,343$ 8,358,777$ 8,368,012$ 8,359,286$ 8,330,688$ 8,280,148$ 82,839,518$ Debt Service
Current Debt Service 856,080$ 865,385$ 863,002$ 859,384$ 863,658$ 862,054$ 864,951$ 861,608$ 862,093$ 856,582$ 860,170$ 8,618,887$ First Issuance -$ -$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ Second Issuance -$ -$ -$ -$ - $ 1,017,404$ 1,017,404$ 1,017,404$ 1,017,404$ 1,017,404$ Third Issuance -$ -$ -$ -$ - $ -$ -$ -$ 1,892,346$ 1,892,346$ Total Debt Service 856,080$ 865,385$ 863,002$ 3,692,374$ 3,696,648$ 3,695,044$ 4,715,346$ 4,712,002$ 4,712,487$ 6,599,323$ 6,602,911$ Debt Service Ratio (1.25 Minimum) 0.52 9.36 9.47 2.23 2.24 2.26 1.77 1.78 1.77 1.26 1.25 Net Operating Income After Debt Service (413,072)$ 7,234,846$ 7,312,453$ 4,547,871$ 4,596,685$ 4,638,299$ 3,643,432$ 3,656,010$ 3,646,799$ 1,731,365$ 1,677,237$ 42,684,997$ .
Transfer to Operating Reserve (2,000,000)$ -$ -$ - $ -$ -$ -$ -$ -$ Transfer to Capital Replacement Program (7,234,846)$ (5,312,453)$ (4,547,871)$ (4,596,685)$ (4,638,299)$ (3,643,432)$ (3,656,010)$ (3,646,799)$ (1,731,365)$ (1,677,237)$ (40,684,997)$ Net Year End Balance in Operating Account -$ -$ -$ -$ - $ -$ -$ -$ -$ -$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Operating Reserve Fund Balance
Carry Forward from Prior Year - $ -$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Interest Earnings on Fund Balance 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Transfer Interest Earnings to Capital Fund 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Outlay - $ -$ -$ -$ -$ - $ -$ -$ -$ -$ -$
Year End Balance -$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Capital Replacement Fund Balances
Carry Forward from Prior Year 0 -$ 1,071,724$ 32,208,550$ 16,578,055$ 52,013$ 8,906,534$ 3,513,557$ 52,494$ 19,623,900$ 11,590,980$ Transfer In from Operating Account 0 7,234,846$ 5,312,453$ 4,547,871$ 4,596,685$ 4,638,299$ 3,643,432$ 3,656,010$ 3,646,799$ 1,731,365$ 1,677,237$ 40,684,997$ Interest Earnings on Fund Balance 0 21,434$ 644,171$ 331,561$ 1,040$ 178,131$ 70,271$ 1,050$ 392,478$ 231,820$ 1,871,956$ Interest Earnings from Operating Reserve -$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 320,000$ Bond Issuance -$ 39,192,760$ -$ -$ 14,075,196$ -$ -$ 26,179,504$ -$ -$ Less: Capital Outlay for Projects -$ 6,163,122$ 13,389,822$ 20,862,537$ 21,494,288$ 9,900,014$ 9,254,539$ 7,227,344$ 10,295,947$ 10,196,763$ 6,037,883$ 114,822,258$ Year End Balance -$ 1,071,724$ 32,208,550$ 16,578,055$ 52,013$ 8,906,534$ 3,513,557$ 52,494$ 19,623,900$ 11,590,980$ 7,502,154$ Notes:
1. The current monthly rate per EDU of $5.45 is insufficient to meet operating expenses and debt service requirements. A monthly rate of $9.54 per EDU would be required to breakeven.
5.00% 5.00% 5.00%
30 30 30
3.50% 3.50% 3.50%
0.00% 0.00% 0.00%
6.51% 6.51% 6.51%
$43,550,000 $15,640,000 $29,090,000
Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 2,832,990$ 1,017,404$ 1,892,346$
BOND PROCEEDS 39,192,760$ BOND PROCEEDS 14,075,196$ BOND PROCEEDS 26,179,504$ 2 5 8
Assumptions: Criteria:
O&M Inflation Factor = 7.5% 1. Minimal year end balance at 10th year Total CIP Bond Proceeds PayGo Annual Rate Escalation= 2% 2. CIP funded through 31% rates and 69% bonds 114,822,258$ 79,447,459$ 35,374,799$ Annual EDU Growth Rate= 1% 3. Bonds Issued in Years 2,5 and 8 100.00% 69.19% 30.81% Minimum Debt Service Ratio= 1.25% 4. CIP based on costs and timeline provided by Wallace and adjusted by City Rate Stabilization Fund not required 5. Transfer of $2,000,000 to O&M reserve fund
ISSUANCE IN STUDY YEAR
BOND TERM (YEARS)
COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
ISSUANCE IN STUDY YEAR
Totals
Totals
Years 1-10
City of Salinas - Sewer Rates/Max Bonding Capacity with minimum 125% coverage (31% PayGo with 69% Bonds) Calendar Years 2025-2034
AVERAGE COUPON
SECOND ISSUANCE
AVERAGE COUPON
THIRD ISSUANCE
AVERAGE COUPON
CIP Allocation
ISSUANCE IN STUDY YEAR
FIRST ISSUANCE
BOND TERM (YEARS)
COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
BOND TERM (YEARS)
Study Year Number Current
Budget1 1 2 3 4 5 6 7 8 9 10
Fiscal Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Rate ($ per EDU -Monthly) 5.45$ 15.00$ 15.60$ 16.22$ 16.87$ 17.55$ 18.25$ 18.98$ 19.74$ 20.53$ 21.35$ Annual Rate Escalation 175.23% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% EDUs 60,558 60,558 61,164 61,776 62,393 63,017 63,647 64,284 64,927 65,576 66,232 Operations
Operating Revenue
City of Salinas Rate Revenue 3,960,518$ 10,900,509$ 11,449,894$ 12,026,969$ 12,633,128$ 13,269,838$ 13,938,638$ 14,641,145$ 15,379,059$ 16,154,163$ 16,968,333$ Investment Interest
Net Income Carry Forward from Prior Year 0 0 0 0 0 0 0 0 0 0 0 Inspection Fees
Total Operating Revenue 3,960,518$ 10,900,509$ 11,449,894$ 12,026,969$ 12,633,128$ 13,269,838$ 13,938,638$ 14,641,145$ 15,379,059$ 16,154,163$ 16,968,333$ 137,361,675$ Operational Expenses
Salaries and Benefits 1,954,090$ 2,100,647$ 2,258,195$ 2,427,560$ 2,609,627$ 2,805,349$ 3,015,750$ 3,241,931$ 3,485,076$ 3,746,457$ 4,027,441$ Supplies and Materials 241,000$ 259,075$ 278,506$ 299,394$ 321,848$ 345,987$ 371,936$ 399,831$ 429,818$ 462,055$ 496,709$ Outside Services 388,000$ 417,100$ 448,383$ 482,011$ 518,162$ 557,024$ 598,801$ 643,711$ 691,989$ 743,889$ 799,680$ Other Charges 397,500$ 427,313$ 459,361$ 493,813$ 530,849$ 570,663$ 613,462$ 659,472$ 708,932$ 762,102$ 819,260$ NPDES Allocation 536,920$ 577,189$ 620,478$ 667,014$ 717,040$ 770,818$ 828,629$ 890,777$ 957,585$ 1,029,404$ 1,106,609$ Total Operational Expenses 3,517,510$ 3,781,323$ 4,064,922$ 4,369,792$ 4,697,526$ 5,049,841$ 5,428,579$ 5,835,722$ 6,273,401$ 6,743,906$ 7,249,699$ 53,494,711$ Net Operating Income before Debt Service 443,008$ 7,119,185$ 7,384,972$ 7,657,177$ 7,935,602$ 8,219,997$ 8,510,059$ 8,805,423$ 9,105,658$ 9,410,257$ 9,718,634$ 83,866,964$ Debt Service
Current Debt Service 856,080$ 865,385$ 863,002$ 859,384$ 863,658$ 862,054$ 864,951$ 861,608$ 862,093$ 856,582$ 860,170$ 8,618,887$ First Issuance -$ -$ 3,060,670$ 3,060,670$ 3,060,670$ 3,060,670$ 3,060,670$ 3,060,670$ 3,060,670$ 3,060,670$ Second Issuance -$ -$ -$ -$ - $ 1,034,968$ 1,034,968$ 1,034,968$ 1,034,968$ 1,034,968$ Third Issuance -$ -$ -$ -$ - $ -$ -$ -$ 1,685,483$ 1,685,483$ Total Debt Service 856,080$ 865,385$ 863,002$ 3,920,054$ 3,924,328$ 3,922,724$ 4,960,590$ 4,957,246$ 4,957,731$ 6,637,703$ 6,641,291$ Debt Service Ratio (1.25 Minimum) 0.52 8.23 8.56 1.95 2.02 2.10 1.72 1.78 1.84 1.42 1.46 Net Operating Income After Debt Service (413,072)$ 6,253,800$ 6,521,970$ 3,737,123$ 4,011,274$ 4,297,273$ 3,549,470$ 3,848,177$ 4,147,927$ 2,772,554$ 3,077,343$ 42,216,910$ .
Transfer to Operating Reserve (2,000,000)$ -$ -$ - $ -$ -$ -$ -$ -$ Transfer to Capital Replacement Program (6,253,800)$ (4,521,970)$ (3,737,123)$ (4,011,274)$ (4,297,273)$ (3,549,470)$ (3,848,177)$ (4,147,927)$ (2,772,554)$ (3,077,343)$ (40,216,910)$ Net Year End Balance in Operating Account -$ -$ -$ -$ - $ -$ -$ -$ -$ -$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025
Operating Reserve Fund Balance 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Carry Forward from Prior Year - $ -$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Interest Earnings on Fund Balance 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Transfer Interest Earnings to Capital Fund 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Outlay - $ -$ -$ -$ -$ - $ -$ -$ -$ -$ -$
Year End Balance -$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Capital Replacement Fund Balances
Carry Forward from Prior Year 0 -$ 90,678$ 33,567,220$ 17,153,151$ 53,199$ 8,809,704$ 3,320,828$ 48,078$ 17,258,686$ 10,219,651$ Transfer In from Operating Account 0 6,253,800$ 4,521,970$ 3,737,123$ 4,011,274$ 4,297,273$ 3,549,470$ 3,848,177$ 4,147,927$ 2,772,554$ 3,077,343$ 40,216,910$ Interest Earnings on Fund Balance 0 1,814$ 671,344$ 343,063$ 1,064$ 176,194$ 66,417$ 962$ 345,174$ 204,393$ 1,810,424$ Interest Earnings from Operating Reserve -$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 320,000$ Bond Issuance -$ 42,342,580$ -$ -$ 14,318,182$ -$ -$ 23,317,667$ -$ -$ Less: Capital Outlay for Projects -$ 6,163,122$ 13,389,822$ 20,862,537$ 21,494,288$ 9,900,014$ 9,254,539$ 7,227,344$ 10,295,947$ 10,196,763$ 6,037,883$ 114,822,258$ Year End Balance -$ 90,678$ 33,567,220$ 17,153,151$ 53,199$ 8,809,704$ 3,320,828$ 48,078$ 17,258,686$ 10,219,651$ 7,503,504$ Notes:
1. The current monthly rate per EDU of $5.45 is insufficient to meet operating expenses and debt service requirements. A monthly rate of $9.54 per EDU would be required to breakeven.
5.00% 5.00% 5.00%
30 30 30
3.50% 3.50% 3.50%
0.00% 0.00% 0.00%
6.51% 6.51% 6.51%
$47,050,000 $15,910,000 $25,910,000
Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 3,060,670$ 1,034,968$ 1,685,483$
BOND PROCEEDS 42,342,580$ BOND PROCEEDS 14,318,182$ BOND PROCEEDS 23,317,667$ 2 5 8
Assumptions: Criteria:
O&M Inflation Factor = 7.5% 1. Minimal year end balance at 10th year Total CIP Bond Proceeds PayGo Annual Rate Escalation= 4% 2. CIP funded through 30% rates and 70% bonds 114,822,258$ 79,978,429$ 34,843,830$ Annual EDU Growth Rate= 1% 3. Bonds Issued in Years 2,5 and 8 100.00% 69.65% 30.35% Minimum Debt Service Ratio= 1.25% 4. CIP based on costs and timeline provided by Wallace and adjusted by City Rate Stabilization Fund not required 5. Transfer of $2,000,000 to O&M reserve fund COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR
BOND TERM (YEARS)
COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
City of Salinas - Sewer Rates/Max Bonding Capacity with minimum 125% coverage (30% PayGo with 70% Bonds) Fiscal Years 2025-2026 through 2034-2035
AVERAGE COUPON
SECOND ISSUANCE
AVERAGE COUPON
THIRD ISSUANCE
AVERAGE COUPON
Totals
Totals
Years 1-10
CIP Allocation
ISSUANCE IN STUDY YEAR
FIRST ISSUANCE
BOND TERM (YEARS)
COST OF ISSUANCE (%)
BOND PREMIUM
RESERVE FUND
BOND AMOUNT
ANNUAL PAYMENT
BOND TERM (YEARS)