CC Agenda Packet 05-14-18 Work Session

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Metropolitan Wastewater Management Commission Eugene Budget Detail SIGNIFICANT CHANGES IN THE O & M BUDGET FOR FY 18-19 The budget for Operations and Maintenance of the regional wastewater treatment facilities (personnel, materials and services, and capital outlay) for FY 18-19 totals $14,149,751. The amount represents a decrease of $196,549 or 1.4% from the FY 17-18 budget. The significant cost centers for the budget include personnel costs, contractual services, utilities, materials, maintenance, fleet, and chemicals. Details of significant items and changes for the FY 18-19 Operations and Maintenance budget as compared to the FY 17-18 budget include: Personnel Services Personnel Services totaling $9,204,678 represents a FY 18-19 increase of $212,493 or 2.4%. The major changes are in the following budget categories: Staffing The FY 18-19 budget includes a 0.96 Full Time Equivalent (FTE) increase in staffing level from FY 17-18 budget. This increase was a mid-year FY17-18 FTE increase using ongoing appropriation approved in FY 15-16 for landscape maintenance services. Current staffing is at 78.36 Full Time Equivalent (FTE). Regular Wages - $5,395,708, an increase of $105,427 or 2.0% Salaries are based upon the negotiated management/labor contracts between the City of Eugene and the local union (AFSCME). The current AFSCME contract is effective through June 20, 2020. Employee Benefits - $2,105,756, an increase of $91,316 or 4.5% The employee benefits consist mainly of PERS/OPSRP retirement system costs, FICA, and Medicare contributions. Health Insurance - $1,545,853, an increase of $18,908 or 1.2% The increase is based on group claims experience and cost projections. Costs are calculated based on the number of employees. Materials and Services The Materials and Services budget totaling $4,781,367 represents an FY 18-19 decrease of $464,888 or 8.9%. The major changes are in the following budget categories: Indirect Charges - $992,285, a net decrease of $40,415 or 3.9% This expenditure category includes costs for payroll processing, human resources services, information technology services, and budget and financial services provided by the City of Eugene to the Wastewater Division. Contractual Services - $477,997, a net decrease of $276,016 or 36.6% This account includes services for outside lab testing, USGS water monitoring, seasonal temporary help, and grit waste disposal. The decrease for this item is mostly due from budgeting one-time projects in FY 17-18 and an expected reduction in temporary help and professional services for FY 18-19. Page 34FY 18-19 BUDGET AND CIP