Item 4: MWMC Ord.and Res. - Laserfiche WebLink

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approximately the amount needed to finance the first five years of construction projects, as included in the Facilities Plan, taking into account inflation. The first issuance of approximately $35,000,000 in revenue bonds is planned for September 2005. Subsequent issuances would occur over approximately a five-year period, and would be planned strategically under the advisement of MWMC's Financial Advisor. The regional wastewater sewer user rate established by MWMC to cover operations, capital improvements and debt service is proposed to increase by 6% in fiscal year 2005-2006, an increase which equates to about 70 cents per month on an average residential sewer bill. The proposed FY06 budget for MWMC has been ratified by the City of Eugene and Lane County; the City of Springfield will address this budget on June 20, 2005. Without the timely issuance of revenue bonds it would require at least a 65% increase in user rates to generate sufficient funds to support the CIP, which equates to an increase of over $7.00 per month on the average residential user's monthly bill. Other Background Information The proposed amendments to the intergovernmental agreement for the Metropolitan Wastewater Management Commission are presented in Attachment A (which is in legislative format) and Attachment B (which is a clean copy for improved readability). These amendments are the culmination of several years of work reviewing the agreement. The scope of the review initially included only changes to align the IGA with changes in operational and physical sewerage system conditions and public policies, which have evolved over the past 25 years. With the adoption of the 2004 MWMC Facilities Plan, review of the IGA was necessarily expanded to support implementation of the Facilities Plan and enable the use of low-cost financing mechanisms needed to serve the metropolitan area for the next twenty years. The majority of the changes proposed in the IGA are related to the need for periodic updates to reflect current operational practices, adopted plans, and metro-wide policy documents. These modifications do not reflect or implement any changes in the relationship or authorities between the governing bodies and the MWMC. The modifications will result in an agreement that is aligned with administrative and operational practices and that is consistent with current regional planning policies and terminologies. Proposed modifications to this end include: · Update the language to reflect adopted Metro Plan terms and policies. · Update the financing guidance by deleting Exhibit B (which refers to the 1992 Financial Plan, the County Service District and General Obligation bonding) and replace it with MWMC's 2003 Financial Plan (including the financial policies and revenue bonding strategy). Move relevant financial management guidance from Exhibit B into the main body of the IGA. · Change the directive from "compensating" the cities for the regional facilities to "facilitating timely transfer of ownership," with the same consideration of funding equity among all sewer users that currently exists. · Eliminate provisions referencing triggers for planning to expand capacity (Section 9 of the IGA), because the 2004 Facilities Plan and its updates replace the need for this provision. As recommended, the changes continue the requirement of obtaining governing body approval for the partial and comprehensive facility plan updates that are scheduled at five-year intervals during the planning period. The recommended changes also allow MWMC to make other relatively minor revisions to the facility plan, such as the annual updates to the regional CIP, without governing body approval. Notwithstanding these recommended changes to the IGA, however, the governing bodies L:\CMO\2005 Council Agendas\M050523\S0505234.doc