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Metropolitan Wastewater Management Commission Reserves <br /> <br /> REGIONAL WASTEWATER PROGRAM <br /> RESERVES <br /> <br />The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a buffer <br />against substantial fluctuations in revenues and expenditures, resulting in the ability to maintain <br />stable rates while fully funding operating and capital needs. Further details on the FY 05-06 <br />reserves are provided below. <br /> <br />WORKING CAPITAL RESERVE <br /> <br />The Working Capital Reserve acts as a revolving account that is drawn down and replenished on <br />a monthly basis to provide funds for payment of Springfield Administration and Eugene <br />Operations costs prior to the receipt of user fees from the Springfield Utility Board and Eugene <br />Water and Electric Board. The Administration Working Capital Reserve is $200,000, and the <br />Operations Working Capital Reserve is $500,000. <br /> <br />OPERATING RESERVE <br /> <br />The Operating Reserve is used to account for accumulated operating revenues net of operating <br />expenditures. The Commission has adopted a policy of budgeting an Operating Reserve balance <br />approximately equal to 10% of the adopted operating budget. <br /> <br />The Operating Reserve For FY 05-06 is budgeted at 10% of the total of Personal Services, <br />Materials and Services, and Capital Outlay in accordance with Commission policy. Additional <br />budget detail for the Operating Reserve is provided below. <br /> <br /> AMENDED <br /> OPERATING RESERVE BUDGET <br /> FY 04-05 <br /> Beginning Balance $1,053,472 <br /> User Revenue 14,973,000, <br /> Septage Revenue 343,000 <br /> Other Revenue 456,494 <br /> Interest 69,000 <br /> Transfer From Capital Reserve 0 <br /> Expenditures (11,918,840) <br /> Debt Service 0 <br /> Transfer to Reserves (4,679,273) <br /> Ending Balance $296,853~ : ~ ,~ <br /> <br /> Review Draft April 21, 2005 Page 38 FY 04-05 BUDGET AND C2 <br /> <br /> <br />