Red Hook WatchIndependent Community Resource

Sewer cashflow

Day-by-day cash projection for FY FY26/27 under the adopted budget, run separately for the two real repayment paths for the $206K budget note authorized May 11, 2026. The EFC bond payment of $205,430 is due March 18, 2027. The Board chooses whether to pay the note in one year (cheaper, larger cash hit) or two (more expensive, level burden).
Pay off in FY 26-27
One-year cash hit
Total cost
$213,952
Rate hike / EDU / quarter
+$186.90
level over 1 year
Min balance
−$342,910
on May 31, 2027
Renew + pay off in FY 27-28
Two-year stretch
Total cost
$221,903
Rate hike / EDU / quarter
+$96.92
level over 2 years
Min balance
−$557,528
on May 31, 2028

Daily cash balance — both repayment scenarios

Red = pay off in FY 26-27 (one year). Blue = renew + pay off in FY 27-28 (two years, FY 27-28 budget proxied from FY 26-27). Quarterly billings as gray dashes; EFC bond payments and budget-note repayments as red marker lines; zero line in red.

Scenario comparison

Same starting point ($76,472 opening cash, adopted FY 26-27 budget). The Board chooses between paying the note in one year or stretching it across two. The rate-increase math assumes the village raises the additional dollars through the Capital Charge, which currently bills 286.19 EDUs at $179/quarter ($204,912 per year).

DimensionPay off in FY 26-27Renew to FY 27-28Notes
Lifetime cost$213,952$221,903Renew costs $7,952 more (second year of interest)
FY 26-27 cash hit$213,952$7,952Principal + interest vs. interest only
FY 27-28 cash hit$213,952Principal + year-2 interest (renew only)
FY 26-27 min balance−$342,910−$162,048Daily-low cash position
FY 27-28 min balance−$557,528Renew scenario only; proxied FY 27-28 budget
Rate hike per EDU per quarter (level)+$186.90+$96.92$179 → $366 vs. $179 → $276 / quarter
Rate-increase math

Capital Charge billing base. 286.19 EDUs × $179/quarter × 4 quarters = $204,912 of annual debt-service revenue. Source: data/extracts/sewer_rates.json.

Pay off in FY 26-27. Raise $213,952 in one year = $213,952 ÷ 286.19 EDUs ÷ 4 quarters = +$186.90 per EDU per quarter (≈ $748/year per EDU on top of the current $716).

Renew + pay off in FY 27-28. Raise $221,903 across two years = $221,903 ÷ 2 ÷ 286.19 EDUs ÷ 4 quarters = +$96.92 per EDU per quarter (level for two fiscal years).

These figures assume the additional dollars are collected entirely through the Capital Charge structure (per-EDU) rather than O&M (per-BU). A blended increase that also touches the O&M rate or that pulls from new fund balance is feasible but not modeled here.

Required opening cash to stay above each floor (FY 26-27)

For each floor, the inverter answers: what opening cash would the sewer fund need on June 1, 2026 to keep its FY 26-27 minimum daily balance above this floor, under each scenario? Both columns compare to the actual $76,472 starting balance.

FloorFloor valueRequired · payoffRequired · renewRationale
Solvent$0$419,434+$342,962$238,525+$162,053Lowest possible target — fund doesn't run negative and avoids needing an emergency advance
GFOA 45d$55,663(45d)$475,098+$398,626$294,189+$217,717GFOA recommended minimum working-capital reserve for enterprise funds
90 days$111,326(90d)$530,762+$454,290$349,854+$273,382Common target for small water/sewer utilities; clears one full billing cycle
120 days$148,435(120d)$567,871+$491,399$386,963+$310,491Upper-end for small utilities without diversified revenue or stable industrial base

The renew column is smaller for FY 26-27 because only the $8K of interest hits — but the principal load shifts into FY 27-28, where the fund would still need additional opening cash to absorb a −$557,528 low. See the FY 27-28 column on the issue page for that side of the picture.

Methodology. Daily cash position simulated from 2026-06-01 through 2027-05-31 for both scenarios. The renew scenario extends a second simulation through May 31, 2028. Inflows: quarterly billings collected with a U-decay pattern (1−U in the due month, 60%/30%/10% of U in the next three). Unpaid rate U = 12.8% from AFR FY 24-25 accounts receivable. Outflows: annual opex spread evenly per day; EFC bond principal as a single Mar 18 event; budget-note interest and/or payoff on May 31 of each year.

Opening cash (FY 26-27). The fund carried $76,472 in cash at end of FY 24-25. FY 25-26 had a $205K General Fund advance in February that was paid back in May via the budget note proceeds — net zero on sewer cash for that roundtrip, modulo timing. Sludge ran ~$55K over budget for the year. If FY 25-26 closes within the AFR baseline range, opening cash for FY 26-27 is approximately the AFR baseline. Update the in_flight_adjustment field when a Treasurer projection or audited AFR becomes available.

FY 27-28 assumption (renew scenario only). No adopted FY 27-28 budget exists yet. The FY 27-28 simulation assumes the same revenue and appropriation totals as FY 26-27 (including the ~$205K EFC bond principal embedded in opex) and the same billing cadence, shifted by one year. Opening cash for FY 27-28 is the FY 26-27 ending balance from the same scenario.

Budget note. Resolution 20-2026 (May 11, 2026) authorized up to $206,000 in budget notes at 3.86% callable from Bank of Greene County, with a 1-year term plus optional 1-year renewal. Annual interest is $7,951.6. Payoff scenario total cost: $213,951.6 (1 year of interest). Renew scenario total cost: $221,903.2 (2 years of interest).

Canonical simulator: analysis/build_sewer_cashflow.py. Config: analysis/configs/sewer_cashflow.yaml. Adopted budget figures pulled from site/data/fiscal_lines.json; EDU count and rate from data/extracts/sewer_rates.json at build time. Schema version 3.0.0.