07/11/1988 Meeting - Laserfiche WebLink

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e In response to questions, Mr. Mounts said the forecasts for the sewer fund were based on projects listed in the CIP; this does not necessarily mean, however, that the sewer fund is the only potential source for these capital projects. He said the forecasts were simply meant to illustrate what the financial impact would be if the CIP projects were funded through the sewer fund. Ms. Schue asked how larger sewer projects have been funded in the past. Christine Andersen, Public Works Director, said serial levies and general obligation bonds have been used. Recently, a number of financing sources have been used, including some Federal funds. Ms. Andersen said the forecasts indicate that the maintenance and operating systems currently in place are going well; significant improvements have been made in these areas over the past years. On the capital side, however, policy decisions will have to be made about how to meet major funding needs. Ms. Ehrman asked what plans were made for major capital projects ten years ago or so. City Manager Mike Gleason said this issue was not really addressed in a comprehensive way. Mr. Bennett asked about the increase in users and sewer fee revenues that would occur if investments were made in the sewer system, and whether the increased revenue would meet the cost of the investments. Mr. Gleason said the second financial forecast indicates that the current rate system would not generate enough revenue to fund major capital investments in the sewer - system. Mr. Miller asked about the impact of River Road/Santa Clara annexations on the sewer fund. Ms. Andersen said that if the annexations occurred less incrementally, the sewer improvements could be planned and made more cost-effectively. Mr. Gleason added that the operational costs of the sewer system would be spread out over more users. In response to a question from Mayor Obie, Ms. Andersen said Springfield provides administrative services to the regional sewer system (MWMC), and Eugene provides the operational services. Mr. Jessie said the total administrative cost for MWMC is $450,000. He said this represents a decrease due to a staff reduction plan. He said a performance audit recommended that between 1 and 1.5 FTE remain as administrative liaisons for MWMC. Mr. Jessie added that this gives Springfield a partnership role in the regional sewer system. Mr. Bennett said the audit gave good marks to the administrative side of MWMC. He said the political reality is that Springfield wants to playa role in the regional system. Mayor Obie asked if the administrative contract was just a buy-off meant to insure Springfield's cooperation in the regional system. Mr. Bennett did not think so. He believed that Springfield makes a strong effort to be administratively efficient. . MINUTES--Eugene City Council July 11, 1988 Page 3