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Metropolitan Wastewater Management Commission Reserves
<br />Operating Reserve is budgeted at $1,585,136,which is 10% of total Personal Services, Materials
<br />and Services, and Capital Outlay in accordance with Commission policy.
<br />EXHIBIT 7
<br />ADOPTED AMENDED PROPOSED
<br />BUDGET BUDGET BUDGET
<br />OPERATING RESERVES
<br />FY 09-10FY 09-10FY 10-11
<br />Beginning Balance6,894,1548,301,98510,584,063
<br />User Fee Revenue24,550,34324,550,34325,940,795
<br />Septage Revenue116,208116,20880,000
<br />Other Revenue1,634,5001,634,5001,634,500
<br />Interest335,000335,000125,000
<br />Personal Services(8,660,632)(8,660,632)(8,609,080)
<br />Materials & Services(6,542,280)(6,602,780)(6,538,359)
<br />Capital Outlay(29,460)(29,460)0
<br />Interfund Transfers(7,413,743)(7,413,743)(10,839,845)
<br />Transfer to Bond Debt Service Fund(2,880,957)(2,880,957)(5,301,288)
<br />Debt Service - SRF Loan00(590,650)
<br />WORKING CAPITAL
<br />(900,000)(900,000)(900,000)
<br />RATE STABILITY RESERVE
<br />(3,560,850)(4,908,181)(2,000,000)
<br />RATE STABILIZATION RESERVE
<br />(2,000,000)(2,000,000)(2,000,000)
<br />OPERATING RESERVE1,542,2831,542,2831,585,136
<br />CAPITAL RESERVES
<br />The MWMC Capital Budget includes five reserves: the Equipment Replacement Reserve, SDC
<br />Reserves (i.e. Reimbursement and Improvement), the Capital Reserve and the Bond Reserve.
<br />These reserves accumulate revenue to help fund capital projects including equipment
<br />replacement and major rehabilitation. They are funded by annual contributions from user rates,
<br />SDCs, bond proceeds, and SRF loans. Each reserve is explained in detail below.
<br />EQUIPMENT REPLACEMENT RESERVE
<br />The Equipment Replacement Reserve accumulates replacement funding for three types of
<br />equipment: 1) major/stationary equipment items costing less than $200,000 with useful lives of
<br />20 years or less; 2) fleet vehicles maintained by the Eugene Wastewater Division; and 3)
<br />computers that serve the Eugene Wastewater Division. Contributions to the Equipment
<br />Replacement Reserve in the FY 10-11 budget total $796,000, additional budget details are
<br />provided below.
<br />The Equipment Replacement Reserve is intended to accumulate funds necessary to provide for
<br />the timely replacement or rehabilitation of equipment, and may also be borrowed against to
<br />provide short-term financing of capital improvements. An annual analysis is performed on the
<br />Equipment Replacement Reserve. The annual contribution is set so that all projected
<br />Page 21 DRAFT FY 10-11 BUDGET AND CIP
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