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2. Revenue Sufficiency Analysis • 2.2 SOURCE DATA The following sub -sections present the key source data relied upon in updating the RSA. 1.2.1 Beginning Fund Balances The County's FY 2023 Annual Comprehensive Financial Report (ACFR) and supporting trial balance were used to establish IRCDUS' beginning FY 2024 (October 1, 2023) balances. Schedule 2 of Appendix A presents a summary of the beginning fund balances for each of IRCDUS' funds. 2.2.2 Revenues IRCDUS' generates revenues primarily through monthly user rates from retail and bulk customers, impact fees, other miscellaneous fees, and interest on fund balances. Rate revenue projections were based upon actuals for FY 2023 and an evaluation of FY 2024 year-to-date revenue collected, adjusted annually to reflect assumed customer growth, changes in demand, and assumed rate revenue adjustments. Service availability (fixed charges) rate revenue for water, sewer, and reclaimed water service were projected based on growth in ERUs within the system, while volumetric rate revenue was projected based on associated growth of water demand and associated billed sewer volumes from new customer connections. • Impact fees are one-time charges paid by a new customer for their share of system capacity. Such fees are the mechanism by which growth can "pay its own way" and minimize the extent to which existing customers must bear the cost of facilities that will be used to serve new customers or customers requiring additional capacity. Projected impact fee revenues reflect the assumed growth in new customers and associated ERUs growth along with the recommended changes to IRCDUS' water and sewer impact fees as documented in the impact fee study performed by Stantec in parallel with this Study. Projections of all other non -rate revenues were based upon IRCDUS estimates for FY 2024 and reflect the amounts within the preliminary FY 2025 Budget8, excluding interest income, which was calculated annually based upon projected average fund balances and assumed interest rates. The projection of revenues is provided on Schedule 3 of Appendix A. IRCDUS' expenditures during the projection period consist of all operating and maintenance (O&M) expenses, minor capital outlays, debt service expenses, and cash funding of capital improvements. Operating Expenses 8 Developed by IRCDUS staff to include proposed changes to miscellaneous services charges as described herein. 0 a M