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Metropolitan Wastewater Management Commission Budget Message
<br />BUDGET MESSAGE
<br />To the Metropolitan Wastewater Management Commission:
<br />I am pleased to present the Metropolitan Wastewater Management Commission’s (MWMC) budget for
<br />fiscal year (FY) 2011-12. This budget funds operations, administration, and capital projects planned for
<br />the Regional Wastewater Program (RWP). The MWMC administration and Capital Improvements
<br />Program (CIP) components of the budget are reflected in the City of Springfield’s RWP budget. The
<br />operations, maintenance, equipment replacement, and major rehabilitation components are reflected in
<br />the City of Eugene’s RWP budget. The Cities’ Industrial Pretreatment Programs, managed locally in
<br />compliance with the MWMC Model Ordinance, also are included in the RWP budget.
<br />This year’s budget reflects a continued focus on design and construction of capital improvements
<br />planned to ensure that operation of the Regional Wastewater Facilities meets environmental regulations,
<br />and that adequate capacity will be provided to meet the needs of a growing service area. The FY 11-12
<br />capital budget and FY 11-12 – FY 15-16 capital improvements work plan, which are included in this
<br />budget document, are derived from the 2004 MWMC Facilities Plan. The budgeted amount for FY 11-
<br />12 Facilities Plan capital improvement projects is $25,932,282; $4,345,577 is carryover from unfinished
<br />projects budgeted in FY 10-11, and $1,586,7054, is new funding programmed in FY 11-12. The FY 11-
<br />12 capital budget also includes Equipment Replacement, Major Rehabilitation and Major Capital Outlay
<br />capital projects, budgeted at $720,355, $507,400 and $275,000 respectively. The total capital budget for
<br />FY 11-12 is approximately $27,435,037. Approximately $10 million of the total capitalbudget will not
<br />be spent in FY 11-12, but is included to enable contracts for construction that will occur in FY 11-12.
<br />Unspent funds will be carried forward to the FY 12-13 budget as appropriate. In order to fund the actual
<br />cash flow requirements of the FY 11-12 CIP, the Commission will use State Revolving Fund (SRF)
<br />loans as well as strategic draw downs of capital reserves.
<br />The FY 11-12 RWP Operating Budget for Personnel Services, Materials and Services and Capital
<br />Outlay expense is $15,722,799. Consistent with the Commission’s Financial Plan and policies, the FY
<br />11-12 budget maintains and uses several reserves, which are fully described in this budget document.
<br />Finally, the FY 11-12 budget includes debt service payments totaling $8,518,080 as scheduled for
<br />repayment of $47.3 million of revenue bonds issued in November 2006, and an additional $52.7 million
<br />in borrowing in FY 08-09 to fund the Facilities Plan capital improvements.
<br />Revenue sources necessary to fund Operations, Capital programs, debt service requirements and
<br />reserves include user charges, system development charges (SDCs), interest earnings and a small
<br />amount of miscellaneous revenues. For FY 11-12 user fee revenues (including septage service and SDC
<br />Compliance Charge) are projected at $27,160,427. This level of revenue is projected based on a 4%
<br />increase in regional wastewater user fees, as recommended by the MWMC financial advisor in order to
<br />meet the Commission’s Financial Plan policies and net revenue objectives. Projected SDC revenues are
<br />projected at approximately $589,281.
<br />In summary, the projected FY 11-12 budget funds operations and administration sufficiently to maintain
<br />existing levels of service, and to meet the environmental performance and other legal obligations of the
<br />Commission. It funds Capital Programs at a level necessary to implement the 2004 Facilities Plan
<br />Page 1 DRAFT FY 11-12 BUDGET AND CIP
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