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8. FINANCIAL STRATEGY 8.3 Future Costs and Revenues 8,3.1 Operation and Maintenance Costs An estimate of O&M costs, including personnel, materials, and service costs, is presented in Table 8.2.1. As new facilities are placed on-line throughout the 20-year planning period, these costs will be further refined. TABLE 8.2.1 MWMC Projected Personnel, Materials and Service Costs For Study Period MWMC Facilities Plan, Eugene-Springfield Personal Services $181,400,000 Materials & Services $169,840,000 Capital Outlay $700,000 Total $351,940.000 8.3.2 Replacement Cost of Proposed System Equipment replacement purchases were budgeted at $1,026,630 in FY 03-04; rehabilitation was budgeted at $182,000 in FY 03-04. Annual Equipment replacement purchases and rehabilitation expenditures are projected to average $1,100,000 and $400,000, respectively, over the study period. 8.3.3 Capital Project Needs As recommended in Chapter 7.0, MWMC intends to proceed with implementation of the $144 million Alternative 5 - Parallel Primary/Secondary Treatment. If DEQ does not approve Alternative 5, then MWMC intends to proceed with implementation of the $157 million Alternative 4 - High-Rate Clarification (assuming that DEQ is willing to approve Alternative 4 as the next best alternative). 8.3.4 Sources of Revenue In the past, MW-MC has generated revenues from monthly sewer rates, SDCs, and special assessments on property taxes associated with the general obligation bonds that were issued for the construction of the original regional system in the 1980s. As was mentioned in section 8.2, the general obligation bonds have been paid off and the current sources of revenue are monthly sewer user fees and SDCs. It is assumed that these two methods will continue to be the primary sources of revenue through the study period. MWMC_8.0_REV5. DOC 8-5