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charges (SDCs). The proposed changes to the IGA do not directly affect these rates, but they improve and strengthen the agreement for the bond market and give the MWMC the ability to offer revenue bonds that will be competitive in the market. The most cost-effective financing for the regional wastewater projects is a combination of user fees, SDCs, and bond proceeds. Without the ability to obtain competitive bond rates, the commission would have to raise user rates by about 65% in the next fiscal year to generate the necessary revenues. Timing The 2004 Facilities Plan outlines a schedule for the capital improvements necessary to continue to maintain the needed wastewater treatment capacity and capability. This schedule is based upon the anticipated future needs of the community, and the need to comply with a deadline of 2010 set by the State Department of Environmental Quality to prevent wastewater overflows during specified storm events. The Capital Improvement Program (CIP) schedule starts in 2005, and includes an extensive list of projects and activities that must be undertaken to meet the objectives. The changes proposed to the IGA are needed now to enable the MWMC to issue revenue bonds in the summer of 2005, to ensure that sufficient revenues are available to support the CIP. Council Goals The proposed amendments to the regional wastewater IGA are supported by, and promote progress towards achievement of, several of the Council's goals. HEALTHYNATURAL AND BUILTENVIRONMENT: The regional wastewater program protects public health and the environment through the efficient collection and treatment ofwastewater generated by the community. Changes are proposed that are necessary to enable the issuance of revenue bonds that are needed to support the 2004 Facilities Plan capital improvement projects. The Facilities Plan identified the capital needs necessary to maintain protection of public health and the environment, to prevent wastewater overflows, and to provide adequate treatment to comply with Federal and State pollution control limitations. An inability to raise revenues necessary to implement the 2004 Facilities Plan, as approved by the Eugene City Council as well as the elected officials of Springfield and Lane County, will result in a high likelihood of environmental impacts and threats to public health. SUSTAINABLE COMMUNITY DEVELOPMENT: Wastewater collection and treatment are essential community services, and the ability of a community to grow and prosper depends upon adequate treatment capacity and capability. The projects contained in the approved Facilities Plan are necessary to ensure that there continues to be adequate capacity to handle the wastewater flows, and sufficient capability to control pollutants, for the anticipated future growth and development needs of the community. EFFECTIVE, ACCOUNTABLE MUNICIPAL GOVERNMENT; and FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES: The intergovernmental agreement for the regional wastewater program has operated effectively for over 25 years, and the proposed amendments will help the program continue to be a model of effective, cooperative efforts among the local governments for provision of this essential service. The changes also give the MWMC the ability to cost-effectively generate the revenues necessary to provide wastewater services that meet the needs of regional sewer users. (MWMC's only customers, however, are the governing bodies.) L:\CMO\2005 Council Agendas\M050209\S050209B.doc