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Metropolitan Wastewater Management Commission Capital Improvement Program <br />lifecycleusing asset management tracking software. Based on this information, the three AMCP <br />program annual budgets are established and projected for the 5-Year Capital Plan. <br />For planning purposes, the MWMC must consider market changes that drive capital project <br />expenditures. Specifically, the MWMC capital plan reflects projected price changes over time <br />that affect the cost of materials and services. Until about 2003, the 20-cityaverage Engineering <br />News RecordConstruction Cost Index(ENRCCI) served as a good predictor for future inflation <br />and was used for projecting the MWMC’s construction costs. Accordingly, construction cost <br />projections considered in the 2004 FP were based on January 2004, 20-city average ENRCCI. <br />However, in the period 2004 through 2008, construction inflation accelerated nationally with <br />local construction cost inflation accelerating even faster thanthe nationalaverage. City of <br />Springfield staff identified this trend in 2005 and subsequently modified theirinflationary <br />projection methodology accordingly. <br />In early 2006, the MWMC hired the consulting firm CH2M to perform a comprehensive update <br />of project cost estimates. Following the 2006 update, the RWP’sCIP assumed a general price <br />increase of 5% per-year over the planning period. However, the MWMC continues to monitor <br />inflationary trends to inform our forecasting of capital improvement costs. Accordingly, based on <br />historical inflationary rates from 2006 through 2016, capital project budgets now reflect a 4% <br />annual inflationary factor in the FY 17-18 Budget and 5-year Capital Plan. <br />Regional Wastewater Capital Program Status and Budget <br />CIP Project Status and Budget <br />The FY 17-18 CIP Budget is comprised of the individual budgets for each of the active <br />(carryover) or starting (new) projects in the first year of the 5-Year Capital Plan. The total of <br />these FY 17-18 project budgets is $33,641,000. Each capital project represented in the FY 17-18 <br />Budget is described in detail in a CIP project sheet that can be found at the end of this document. <br />Each project sheet provides a description of the project, the project’s purpose and driver (the <br />reason for the project), the funding schedule for the project, and the project’s expected final cost <br />and cash flow. For those projects that are in progress, a short status report is included on the <br />project sheet. <br />Page39FY 17-18BUDGET AND CIP <br /> <br />