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e e e less money than anticipated, and in order to pay for that difference, it had used available reserves in the Sewer Fund, which now were virtually gone. Mr. Rutan asked about the amount of reserves used to make up unreceived revenue. Ms. Andersen referred members to the last page of the memos, containing Table 4 on the subject of Rate Period Comparisons: Revenue Requirements and User Characteristics. She said reserve amounts were shown as Offsetting Revenue for Storm and Sanitary Sewer estimates, for an average amount of about $270,000 per year. She added that remaining reserves now were about $100,000. Mr. Holmer asked about the beginning balance on June 30, 1987. Mr. Jessie said the chart showing MWMC Rate Stability Reserve Projection represented the regional portion of sewer charges, while the Rate Period Comparisons represented local charges. Mr. Rutan recommended including those labels on the information. Mayor Obie noted the two-year charges for wastewater flow and asked about the cost of treating that amount of water. Ms. Andersen said the cost of treatment was a regional cost that was not directly related to the local rate structure. She added that the local system included collection and transport piping to the regional carrying system and treatment facilities. Mr. Jessie reviewed Page 2 of the memo, describing service level changes as contributing to the need for changing the sewer user rates. Ms. Andersen added that the service level had not been increased and that no new positions had been added, but that funding had been shifted from the General Fund to the Sewer Utility for more specific identification. Mr. Holmer asked what happened to the $100,000 remalnlng in reserves. Mr. Whitlow said that had been used to help balance the General Fund budget. He said similar actions had been taken with regard to the ambulance fund, adding that those actions were included in the Cityls fiscal management policies. Mr. Rutan asked whether the shift to the Sewer Fund would not compound the fundls instability. Mr. Whitlow said it would unless rates were increased. He added that other alternatives included continuing a General Fund subsidy or cutting the level of service. Responding to questions, Ms. Andersen said the position for Public Works Administration included a half-time public information coordinator and a half-time finance coordinator, both doing work largely related to sewer systems and programs. She also said the engineering and design position would involve front-counter work dealing with sewers, and the position for pump station maintenance was needed in order to maintain pump stations in residential areas. Mr. Miller asked about the impact on rates if the current yearls status quo were maintained. Ms. Andersen said the proposed rate increase was expected to result in about $510,000 in revenue. Mr. Miller noted that the fund then would have a $200,000 shortfall. Mayor Obie asked about the total budget for the local system. Mr. Jessie said the total budget was about $3 million for one year and about $5 million for a two-year period. Staff said the fund was reviewed by Budget Subcommittees B, MINUTES--Eugene City Council Dinner/Work Session May 11, 1987 Page 3