Item B: MWMC Budget and CIP - Laserfiche WebLink

Home Browse Search

Metropolitan Wastewater Management Commission Reserves RATE STABLITY RESERVE The Rate Stability Reserve was established to implement the Commission's objective of maintaining stable rates. It is intended to hold revenues in excess of the current year's operating and capital requirements, in order to avoid "rate spikes" in future years. AMENDED RATE STABILITY RESERVE BUDGET FY 04-05 Beginning Balance $0 Transfer From Operating Reserve 1,289,168 Transfer to Operating Reserve 0 Ending Balance $1,289,168 BOND RESERVE In order to sell revenue bonds, an bond covenants are established as part of the sales agreements that provide assurances to the bond holders that adequate revenue coverage will be provided for future debt service payments. A Bond Reserv,e in which 10 percent of bond proceeds is placed, is a commonly used method found in Bond Covenants. AMENDED BOND RESERVE BUDGET FY 04-0 Beginning Balance $0 Transfer From Operating Reserve $0 Ending Balance $0 CAPITAL RESERVE The Capital Reserve accumulates funds transferred from the Operating Reserve for the purpose of funding the CIP, Major Capital Outlay and Major Rehabilitation Program costs. The intent is to minimize rate impacts associated with fluctuating Capital Program costs in any given year. The FY 05-06 Budget includes a contribution from the Operating Reserve of $ 3,137,500 to maintain this reserve and to cover CI? and Major Rehabilitation Program costs. The beginning balance on July 1, 2005 is projected to be $7,574,210. Additional budget detail on the CIP, Major Capital Outlay and Major Rehabilitation Program reserves is provided on the following page. Review Draft April 21, 2005 Page 39 FY 04-05 BUDGET AND CF