Item B: MWMC Budget and CIP - Laserfiche WebLink

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Ratification of the annual regional wastewater program budget and CIP is necessary to maintain provision ofwastewater collection and treatment services to the Eugene/Springfield community. Failure to ratify by any of the governing bodies that are signatory to the MWMC intergovernmental agreement results in the current year regional wastewater operating budget being rolled forward until any disputes over the proposed budget or CIP are resolved. During the dispute resolution period, shortfalls in the revenue necessary to meet increased expenses that might occur in FY05-06, such as those related to increased energy and chemical expenses and higher labor costs, may increase the risk of noncompliance with regulatory requirements or create other operational or maintenance restrictions thereby resulting in decreased efficiencies and higher longer-term costs resulting from deferred activities. Capital expenditures by MWMC are also prohibited unless the budget is ratified by all of the governing bodies. The budget presented herein for ratification is for the regional wastewater program only as MWMC contracts with the City of Eugene for operation and maintenance of the regional facilities and with the City of Springfield for administration and capital program management. The City of Eugene's budget for providing these services is included within the Public Works Department Budget. Funding for the operations and maintenance of the local wastewater system, including sewer lines and pump stations, is addressed separately within the Public Works Department budget. Ratification of the FY05-06 MWMC budget and CIP by the City of Eugene Council needs to occur prior to the end of June, 2005, in order to avoid interruption in operation as of July 1, 2005. The MWMC is scheduled to meet on June 23, 2005 to adopt the ratified budget. If the City of Eugene Council elects to pursue Option 2 below and return the budget to MWMC with specific requests for modification, the ratification process would begin again with all three governing bodies. RELATED CITY POLICIES MWMC's regional wastewater program budget and CIP is related to the council goal of: · Fair, Stable and Adequate Financial Resources A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services COUNCIL OPTIONS 1. Approve the motion to ratify the FY05-06 MWMC regional wastewater program budget and CIP. 2. Return the FY05-06 MWMC Regional Wastewater Program Budget and CIP to MWMC for reconsideration, with specific requests for modification. CITY MANAGER RECOMMENDATION The City Manager recommends ratification of the proposed FY05-06 MWMC Regional Wastewater Program Budget and CIP. SUGGESTED MOTION Move to ratify the FY05-06 MWMC Regional Wastewater Program Budget and CIP. L:\CMO\2005 Council Agendas\M050509\S050509B.doc