Item B - MWMC Budget and CIP - Laserfiche WebLink

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At the May 24, 2004, City Council meeting, ratification was deferred to the June 14, 2004, meeting following a request for additional information in response to questions raised by councilors concerning efforts toward public outreach and involvement activities. The Agenda Item Summary (ALS) for the June 14 City Council meeting included 1) a historical chart of the plans reflected in the budget process over the years with corresponding outreach and involvement activities; 2) a summary table of the regional wastewater program's public awareness, education, and involvement efforts; and 3) a comprehensive memorandum with detailed explanations of this history with appropriate, representative samples of outreach and involvement activities. At its June 14, 2004, meeting the council was unable to address the MWMC Regional Wastewater Program Budget and CIP due to time constraints. The item was postponed until June 28, 2004, and is scheduled for action at the work session prior to the council meeting. Policy Issues Ratification of the annual regional wastewater program budget is necessary to maintain provision of wastewater collection and treatment services to the Eugene/Springfield community. Failure to ratify by any of the governing bodies that are signatory to the MWMC intergovernmental agreement results in the current year regional wastewater budget being rolled forward until any disputes over the budget are resolved. Shortfalls in revenue necessary to meet increased expenses in FY04-05, such as those related to increased energy and chemical expenses and higher labor costs, may increase the risk of noncompliance with regulatory requirements or other operational or maintenance restrictions thereby resulting in decreased efficiencies and higher, longer-term costs from deferred activities. Capital expenditures by MWMC are also prohibited if the budget is not ratified. Council Goals The MWMC Regional Wastewater Program Budget and CIP are related to the City Council goal of: · FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services Financial and/or Resource Considerations The budget presented herein for ratification is for the regional wastewater program only as MWMC contracts with the City of Eugene for operation and maintenance of the regional facilities and with the City of Springfield for administration and capital program management. The City of Eugene's budget for providing these services is included in the Public Works Department Budget. Funding for the operations and maintenance of the local wastewater system, including sewer lines and pump stations, is addressed separately within the Public Works Department budget. Timing Ratification of the FY04-05 MWMC budget by the City of Eugene Council needs to occur prior to the end of June 2004, in order to avoid interruption in operation as of July 1, 2004. The MWMC is scheduled to meet on June 30 to adopt the ratified budget. If the Eugene City Council elects to pursue Option 2 below and return the budget to MWMC with specific modification requests, the ratification process would begin again with all three governing bodies. L:\CMO\2004 Council Agendas\M040628\S040628B.doc