05/13/19 City Council Agenda Packet - meeting

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Metropolitan Wastewater Management Commission Eugene Budget Detail CHANGES IN THE O & M BUDGET FOR FY 19-20 The FY 19-20 budget for Operations and Maintenance of the regional wastewater treatment facilities (personnel, materials and services, and capital outlay) totals $14,484,457. The amount represents an increase of $334,706 or 2.4% from the FY 18-19 budget (or an increase of 2.0% from the amended FY 18-19 budget). The significant cost centers for the budget include personnel costs, chemicals, materials, maintenance, contractual services, fleet, and utilities. Significant items and changes for the FY 19-20 Operations and Maintenance budget as compared to the FY 18-19 budget include: Personnel Services Personnel Services totaling $9,736,062 represents a FY 19-20 increase of $531,384 or 5.8%. There are no requested changes in the current staffing level of 78.36 Full Time Equivalent (FTE) positions. The notable changes are in the following budget categories: Employee Benefits - $2,411,197, an increase of $305,441 or 14.5% For FY 19-20 there will be an increase of PERS/OPSRP retirement system costs, the largest portion of employee benefits, in addition to FICA and Medicare contributions. Health Insurance - $1,612,273, an increase of $66,420 or 4.3% The increase is based on group claims experience and cost projections. Costs are calculated based on the number of employees. Regular Salaries - $5,566,093, an increase of $170,385 or 3.2% 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. Materials and Services The Materials and Services budget totaling $4,728,395 represents an FY 19-20 net decrease of $52,972 or 1.1%. The notable changes are in the following budget categories: Chemicals - $350,850, an increase of $20,850 or 6.3% The price agreement for sodium hypochlorite expired recently and a new five-year price agreement has been entered into. The increase for costs in this line item are mainly due to increases in the new price agreement. Contractual Services - $402,511, a net decrease of $75,486 or 15.8% 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 owing to the conclusion of one-time projects in FY 18-19 and an expected reduction in professional services for FY 19-20. Computer Equipment, Supplies, Maintenance - $270,919, a net decrease of $84,515 or 23.8% The decrease is due mostly to the completion in FY 18-19 of budgeted one-time items related to the Building Improvements project. Page 34 FY 19-20 BUDGET AND CIP - ¸ ΐΒǾ ΑΏΐΘǾ 7®±ª 3¤²²¨® ȟ )³¤¬ Β#