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Projected Operating Results Existing Rates <br /> <br /> <br /> <br />Fiscal Year 2020 2021 2022 2023 2024 <br />Operating Revenues $2,313,881 $2,313,881 $2,313,881 $2,313,881 $2,313,881 <br />Less Operating <br />(3,075,390) (3,182,069) (3,305,696) (3,405,814) (3,510,340) <br />Expenses <br />Plus Non -Operating <br /> 269,356 179,293 121,150 145,188 146,987 <br />Revenue <br />Plus Fees and <br /> 223,370 198,370 198,370 198,370 198,370 <br />Transfers <br />Change in Net Position $(268,783) $(490,525) $(672,295) $(748,374) $(851,101) <br />Net Position as <br />-11.6% -21.2% -29.1% -32.3% -36.8% <br />Percent of Revenues <br /> <br />Cash Reserves <br />A summary of the impact of the projected operating results on ERMUunrestricted cash <br />reserves for the Study Period is shown at the end of Exhibit 2-A and in Table 2-3 below. <br />As shown below, under existing retail rates and estimated revenue requirements over the <br />Study Period, the unrestricted cash reserves for the water utility are projected to decrease <br />from $7.7 million to $3.9 million by the end of the Study Period. ERMU has a reserve <br />policy that sets a minimum target for reserves equal to 6 months operating expenses less <br />though the overall reserves decrease during the Study Period, they are consistently <br />above 340% of the ERMU minimum goal. <br />- 5 - <br />