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Metropolitan Wastewater Management Commission Reserves <br />REGIONAL WASTEWATER PROGRAM <br />RESERVES <br />The RWP maintains reserve funds for the dedicated purpose to sustain stable rates while fully <br />funding operating and capital needs. Commission policies and guidance, which direct the amount <br />of reserves appropriated on an annual basis, are found in the 2005 MWMC Financial Plan. <br />Further details on the FY 18-19 reserves are provided below. <br />OPERATING RESERVES <br />The MWMC Operating Budget includes six separate reserves: the Working Capital Reserve, <br />Rate Stability Reserve, Rate Stabilization Reserve, State Revolving Fund (SRF) Reserve, <br />Insurance Reserve and the Operating Reserve. Revenues are appropriated across the reserves in <br />accordance with Commission policy and expenditure needs. Each reserve is explained in detail <br />below. <br />WORKING CAPITAL RESERVE <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 Working Capital Reserve is set at $900,000 for FY 18-19, <br />$200,000 of which is dedicated to Administration and $700,000 is dedicated to Operations. <br />RATE STABILITY RESERVE <br />The Rate Stability Reserve was established to implement the Commission’s objective of <br />maintaining stable rates. It is intended to hold revenues in excess of the current year’s operating <br />and capital requirements for use in future years, in order to avoid potential rate spikes. The <br />amount budgeted on an annual basis has been set at $2 million, with any additional net revenues <br />being transferred to the capital reserve for future projects. <br />RATE STABILIZATION RESERVE <br />The Rate Stabilization Reserve contains funds to be used at any point in the future when net <br />revenues are insufficient to meet the bond covenant coverage requirement. The Commission <br />shall maintain the Rate Stabilization account as long as bonds are outstanding. In FY 18-19 no <br />additional contribution to this reserve is budgeted and the balance at June 30, 2019, will remain <br />at $2 million. <br />CLEAN WATER STATE REVOLVING FUND (SRF) RESERVE <br />The Clean Water SRF Reserve was established to meet revenue coverage requirements for SRF <br />loans. The SRF Reserve is set at $670,908 for FY 18-19. <br />Page 19FY 18-19 BUDGET AND CIP <br /> <br />