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approximately $35,000,000 in revenue bonds in September of 2005, and a total of about $100,000,000 over a five-year period. The regional wastewater sewer user rate established by MWMC to cover operations, capital improvements and debt service is proposed to increase by 6% in fiscal year 2005-2006, an increase which equates to about 70 cents per month on an average residential sewer bill. Without the timely issuance of revenue bonds it would require at least a 65% increase in user rates to generate sufficient funds to support the CIP, which equates to an increase of over $7.00 per month on the average residential user's monthly bill. RELATED CITY POLICIES 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 to 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 are the governing bodies.) OTHER BACKGROUND INFORMATION The proposed amendments to the intergovernmental agreement for the Metropolitan Wastewater Management Commission are presented in Attachment A (which is in legislative format) and Attachment B (which is a clean copy for better readability). These amendments are the culmination of several years of work reviewing the agreement. The scope of the review initially included only changes to align the IGA with changes in operational and physical sewerage system conditions and public L:\CMO\2005 Council Agendas\M050411\S050411B.doc