Item 2C: Ratification of MWMC Budget

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Metropolitan Wastewater Management Commission Budget and Program Summary Staffing During mid-year budget review in FY 05-06 Springfield added 6 FTE to support the MWMC Construction Management program, and reduced staffmg by .2 FTE in accounting. No new changes in staffing levels are proposed for FY 06-07. Regular Wages - Budget Request $1,105,564 [Increase of $306,383 or 38% over original adopted FY 05-06 budget; $157,988 or 17% over the amended FY 05-06 budget] · Salaries for FY 06-07 increase by 2.0% per an estimate of the contract agreement between the City of Springfield and the local union (OPEU). Merit increases for some employees are also budgeted. Most of the increase in regular wages is from the full-year impact of the six positions that were added to the FY 05-06 budget at mid-year. Employee Benefits - Budget Request $466,091 [Increase $124,520 or 36%. over original adopted FY 05-06 budget; $44,175 or 10% over the amended FY 05-06 budget] · The overall increase in employee benefits is primarily due to the increased FTEs, but on a per FTE basis, it is due to a 3.5% increase in the cost of health insurance for a typical employee (two-party coverage). The PERS rate did not change for FY 06-07. Materials and Services The proposed Materials and Services budget represents a total FY 06-07 increase of $13,421 or 1 % over the originally adopted FY 05-06 budget; it is a $297,071 or 14% reduction from the amended FY 05-06 budget. The major changes are in the following budget categories: Billing and Collection Expenses - Budget Request $382,000 [Decrease of $13,000 or 3%] · Billing and Collection expenses are projected to decrease by 3%. This reduction is primarily due to the fact that the adopted FY 05-06 budget reflected anticipated billing rate increases from both the Springfield Utility Board (SUB) and Eugene Water and Electric Board (EWEB), neither of which took place. Further, SUB will not be imposing a rate increase for FY 06-07. Contractual Services - Budget Request $226,000 [Decrease of $66,500 or 230/0 from the originally adopted FY 05-06 budget; it is a $127,802 or 36% reduction from the amended FY 05-06 budget] · The Contractual Services budget contains budgeted funds for consultant support to ongoing MWMC administration activities. The anticipated reductions in contractual services needs are attributed primarily to two things: taking on regional flow monitoring activities in-house (a reduction of $50,000); and reducing the back log of data archiving that is out-sourced (a reduction of $12,500). Page 12 PROPOSED FY 06-07 BUDGET AND CIP