Item B: MWMC Budget and CIP - Laserfiche WebLink

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Metropolitan Wastewater Management Commission Budget Message with ongoing administration and operations are for non-discretionary costs such as fees, utilities and employee benefits, as well as one-time contractual expenses. The proposed FY 05-06 RWP Operating Budget maintains the Commission's Financial Plan and capital financing strategies, including funding all reserves at the Commission's and the MWMC Financial Advisor's stated targets. The combined RWP FY 05-06 Operating Budget includes increases of 13% in Personnel Services, 6% in Materials and Services, and 47% in contributions to reserves over the originally adopted FY 04-05 budget. The FY 05-06 RWP Operating Budget also includes a new Debt Service budget of $762,500. The significant increase in reserves and debt service requirements relate to meeting CIP financing requirements. The revenues required to fund the FY 05-06 Operating Budget will necessitate a 6% user rate increase which is consistent with the Commission's three year rate strategy. This new rate will result in an average residential billing of $11.96 per month, based on a typical residential water consumption of 5,000 gallons, which is about a $.68 increase. Budget Highlights FY 05-06 staffing allocations to the RWP have increased modestly, in order to accommodate the expanded workload associated with the operation of the Biosolids Management Facility and Biocycle Farm, and to address shifting priorities and funding allocations. The total FTE for the RWP in FY 05-06 is budgeted at 86.85 as compared to 84.41 in FY 04-05. This includes a 0.3 FTE increase in Springfield FTE associated with distribution of staff time between regional and local programs, and a minor reorganization of RWP and Pretreatment Program functions. This also includes an increase of 2.14 FTE in Eugene staffing to support increased workload at the Biosolids Management Facility and to allocate stafftime properly between regional and local programs. · Including changes in staffing, RWP Personnel Services costs will increase by about 13% overall which reflects the combined effects of a projected 2.0-2.9% cost of living adjustment for Eugene, and a 2.6% cost of living adjustment for Springfield. The remainder of the increase is due primarily to higher rates for health insurance and PERS cost increases. · The FY 05-06 Materials and Services budget will increase 6%, reflecting staff's efforts to maintain the overall RWP budget as flat as possible, while accommodating unavoidable increases in areas such as utilities and chemicals, and one-time contractual services expenses. Budget Assumptions The following assumptions and/or projections form the basis of the FY 05-06 RWP Operating Budget: · The MWMC Key Outcomes and corresponding performance measures for FY 05-06, along with the MWMC Services Agreement, and the capital financing requirements of the MWMC Facilities Plan, form the basis for the RWP Work Plan and Operating Budget. Review Draft April 21, 2005 Page 2 FY 05-06 BUDGET AND C[P