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MetropolitanWastewaterManagementCommissionBudgetandProgramSummary <br />4.TheEquipmentReplacementContributionisabudgetedtransferofoperatingrevenuesto“sinkingfunds” <br />(reserves)forscheduledfuturereplacementofmajorequipment,vehicles,andcomputers.Seetableonpage <br />22foryear-endbalance. <br />5.TheCapitalReserveContributionisabudgetedtransferofoperatingrevenuesto“sinkingfunds”(reserves). <br />CapitalispassedthroughtheSpringfieldAdministrationBudget.Seetableonpage24foryear-endbalance. <br />6.TheWorkingCapitalReserveactsasarevolvingaccountwhichisdrawndownandreplenishedona <br />monthlybasistofundEugene’sandSpringfield’scashflowneeds. <br />7.TheRateStabilityReserveisusedtosetasiderevenuesavailableatyear-endafterthebudgetedOperating <br />Reservetargetismet.Internalpolicyhasestablishedalevelof$2,000,000fortheRateStabilityReserve. <br />SeeExhibit7onpage21foryear-endbalance. <br />8.TheOperatingReserveisusedtoaccountfortheaccumulatedoperatingrevenuesnetofoperations <br />expenditures.TheCommissionhasadoptedapolicyofmaintainingaminimumOperatingReservebalance <br />approximatelyequalto10%oftheadoptedOperatingBudget.Thistargetedleveloffundingprovidesfor <br />contingencyfundsintheeventunanticipatedexpensesorrevenueshortfallsoccurduringthebudgetyear. <br />9.TheDebtServicelineitemisthesumofannualinterestandprincipalpaymentsontheRevenueBondsand <br />SRFloansmadefromtheOperatingBudget(derivedfromuserrates).ThetotalamountofDebtService <br />budgetedinFY12-13is$8,846,615,thebalanceofwhichisbudgetedfromSDCs. <br />10.TheRateStabilizationReservewasestablishedat$2millionasaresultofthe2006MWMCRevenueBond <br />DeclarationandCovenants.Itholdsfundsthatareavailableifneeded,toensureDebtServicepaymentscan <br />bemade. <br />11.TheSRFloanreserveisbudgetedasrequiredperloanagreements. <br />12.TheRevenueBondReservesbudgetedat$8.1million,includes$4millionestablishedtocoverthe2006 <br />bond,and$4.1millionestablishedtocoverthe2008bond. <br />Page11PreliminaryFY12-13BUDGETANDCIP <br />