Item 2C - MWMC Budget/CIP - Laserfiche WebLink

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Metropolitan Wastewater Management Commission Budget Message BUDGET MESSAGE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION MEMBERS: Introduction Consistent with the Intergovernmental Agreement, I am presenting a proposed budget for FY 04- 05 that funds operations, administration, and capital projects planned for the Regional Wastewater Program (RWP). The Metropolitan Wastewater Management Commission (MWMC) administration and Capital Improvements Program (CIP) components of the budget are reflected in the regionally funded portions of the City of Springfield's Environmental Services Division, Public Works Administration and Finance Department budgets. The operations, maintenance, equipment replacement, and major rehabilitation components are reflected in the regionally funded portions of the City of Eugene's Wastewater, Engineering and Maintenance Divisions' budgets. The Cities' Industrial Pretreatment Programs, managed locally in compliance with the MWMC Model Ordinance, also are included in the RWP budget. The CD portion of the budget for FY 04-05 includes funding for several ongoing capital projects, including: development of the Biocycle Farm and associated reclaimed water distribution infrastructure, and completion of the MWMC Facility Plan for the Regional Wastewater Facilities. Unexpended funds for these projects, which were budgeted in FY 03-04, are being carded forward into FY 04-05 to support actual project schedules. New capital projects in the FY 04-05 CIP and budget include improvements to the primary clarifiers, secondary clarifiers, and the south aeration basins, among others. Other Capital Programs, including Major Rehabilitation, Equipment Replacement, and Major Capital Outlay also are fully funded in the proposed FY 04-05 CIP and budget. The proposed FY 04-05 RWP Operating Budget includes a 5.65 FTE increase in the City of Springfield staffing necessary to begin the coordination, design and construction management for the new capital projects identified in the MWMC Facility Plan. City of Eugene staffing also will increase by 2.22 FTE to account for reallocation of staff in regional versus local programs and a modest increase in new personnel in the Wastewater Division. Except for staffing levels, RWP managers prepared budgets that absorb unavoidable cost increases where possible. Most of the proposed budget increases associated with ongoing administration and operations are for non- discretionary costs such as fees, utilities and employee benefits. The proposed FY 04-05 RWP Operating Budget increases the user fee contribution to the Capital Reserve to $3,000,000, after a one-year reduction. This action was in keeping with Commission direction and the 200,~ MWMC Financial Plan, and will be needed to help fired upcoming capital projects. Together, these actions result in a 39% increase in the FY 04-05 Operation Budget as compared to the originally .adopted FY 03-04 Operating Budget. The revenues required to fund the FY 04- 05 Operating Budget will necessitate a 24% user rate increase. This new rate will result in an average residential billing of $11.28 per month, based on a typical residential water consumption of 5,000 gallons. April, 2004 DRAFT Page 1 FY 04-05 BUDGET AND CIP