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Metropolitan Wastewater Management Commission Budget Message <br /> <br />· Current National Pollutant Discharge Elimination System (NPDES) discharge permit <br /> requirements will be addressed operationally and in planning/development of CIP projects, <br /> and all permit conditions are intended to be met. <br /> <br />· New environmental challenges (e.g. Clean Water Act regulations) will be monitored and <br /> responded to. <br /> <br />· The Commission's first sale of revenue bonds, and use of other potential cost-beneficial <br /> financing tools, require a Debt Service line item, a Debt Service Reserve, and budgeted <br /> expenses associated with the bond sale. <br /> <br />· Proposed annual cost of living wage adjustments include a 2.9% increase in base salaries for <br /> Eugene union members, a 2% increase in base salaries for Eugene non-represented <br /> employees, and a 2.6% increase in base salaries for Springfield. <br /> <br /> · Property and liability insurance costs are expected to increase at a slower rate for FY 05-06, <br /> and the budget has been reduced from prior years to recognize this slower-than-expected <br /> growth. <br /> <br /> · Contractual Services costs will increase to fund ongoing Commission activities such as <br /> regional flow monitoring, increased public outreach and public documents associated with <br /> the MWMC Facilities Plan, technical assistance needed for NPDES permit compliance, and a <br /> review of MWMC's user rate cost centers. <br /> <br /> · Litigation Expense is again budgeted to address legal suits and appeals filed by the Home <br /> Builders Association of Lane County. <br /> <br /> · Working Capital remains budgeted at $200,000 for Springfield and $500,000 for Eugene. <br /> <br /> · The Commission targets for funding the Operating Reserve, Capital Reserve and Equipment <br /> Replacement Reserve are met. <br /> <br /> · CIP projects budgeted in FY 04-05 will be partially completed in that timeframe; however, <br /> approximately $15,900,000 in carryovers to FY 05-06 are anticipated as a result of <br /> contractual commitments spanning both fiscal years. <br /> <br /> · Projected FY 05-06 revenues are as follows: User fees - $16,150,000; Interest -$606,900; <br /> and System Development Charges (SDC) - $1,774,800. <br /> <br /> · The revenues and projects budgeted for FY 05-06 assume that the MWMC SDC <br /> methodology and the Facilities Plan will be upheld in the courts. However, a contingency <br /> reserve has been established within the Capital Reserve in the event the SDC methodology is <br /> remanded. <br /> <br /> Review Draft April 21, 2005 Page 3 FY 05-06 BUDGET AND CIP <br /> <br /> <br />