|
Metropolitan Wastewater Management Commission Reserves
<br />
<br /> REGIONAL WASTEWATER PROGRAM
<br /> RESERVES
<br />
<br />The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a
<br />buffer against substantial fluctuations in revenues and expenditures, resulting in the
<br />ability to maintain stable rates while fully funding operating and capital needs. Further
<br />details on the FY 04-05 reserves are provided below.
<br />
<br />WORKING CAPITAL RESERVE
<br />
<br />The Working Capital Reserve acts as a revolving account that is drawn down and
<br />replenished on a monthly basis to provide funds for payment of Springfield
<br />Administration and Eugene Operations costs prior to the receipt of user fees fi.om the
<br />Springfield Utility Board and Eugene Water and Electric Board. The Administration
<br />Working Capital Reserve is $200,000, and the operations Working Capital Reserve is
<br />$500,000.
<br />
<br />OPERATING RESERVE
<br />
<br />The Operating Reserve is used to account for accumulated operating revenues net of
<br />operations expenditures. The Commission has adopted a policy of maintaining a
<br />minimum Operating Reserve balance approximately equal to 10% of the adopted
<br />operating budget.
<br />
<br />The Operating Reserve For FY 04-05 is budgeted at 10% of the total of personal services,
<br />materials and services, and capital outlay in accordance with Commission policy.
<br />Additional budget detail for the Operating Reserve is provided below.
<br />
<br /> ADOPTED AMENDED PROPOSED
<br /> BUDGET BUDGET BUDGET
<br /> FY 03-04 FY 03-04 FY 04-05
<br /> OPERATING RESERVE
<br /> Beginning Balance $451,870 $1,264,188 $1,617,216
<br /> User Revenue 11,265,000 11,265,000 14,973,000
<br /> Septage Revenue 377,000 377,000 343,000
<br /> Other Revenue 277,765 277,765 456,494
<br /> Interest 23,600 23,600 69,000
<br /> Expenditures (10,149,817) (10,547,012) (11,616,707)
<br /> Transfer to Reserves (1,231,098) (1,646,221) (4,684,793)
<br /> Ending Balance $1,014,320 $1,014,320 $1,157,210
<br />
<br />RATE STABLITY RESERVE
<br />
<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
<br />operating and capital requirements, in order to avoid "rate spikes" in future years.
<br />
<br /> April, 2004 DRAFT Page 34 FY 04-05 BUDGET AND CIP
<br />
<br />
<br />
|