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MetropolitanWastewaterManagementCommissionBudgetandProgramSummary <br />OPERATINGBUDGETANDRATEHISTORY <br />Thegraphsonpages15and16showtheRegionalResidentialSanitarySewercostsovera5-year <br />period,anda5-yearRegionalOperatingBudgetComparison.BecausetheEquipment <br />ReplacementandMajorInfrastructureRehabilitationprogramsaremanagedintheEugene <br />OperatingBudget,basedonthesize,typeandbudgetamountoftheprojecttheseprogramsare <br />incorporatedintoeitherthe5-yearRegionalOperatingBudgetComparisongraphorthe5-Year <br />CapitalProgramsgraphonpage16.TheRegionalWastewaterCapitalImprovementPrograms <br />graphonpage16showstheexpendituresovertherecentfiveyearsintheMWMC’sCapital <br />ProgramandincludingAssetManagementprojects.AlistofcapitalprojectsislocatedinExhibit <br />13onpage45. <br />AsshownontheRegionalResidentialSanitarySewerRategraphonpage15,regionalseweruser <br />chargeshaveincrementallyinceasedtomeettherevenuerequirementsnecessarytofundfacility <br />improvementsasindentifiedinthe2004MWMCFacilitiesPlan.ThisPlandemonstratedthe <br />needforasignificantcapitalinvestmentinnewandexpandedfacilitiestomeetenvironmental <br />performancerequirementsandcapacitytoservethecommunitythrough2025.Althougha <br />portionofthesecapitalimprovementscanbefundedthroughsystemdevelopmentcharges <br />(SDCs),muchofthefundingforapproximately$196million(in2006dollars)incapital <br />improvementsoverthe20-yearperiodwillcomefromusercharges.Since2004,thishasbecome <br />themajordriveroftheMWMC’sneedtoincreaseseweruserratesonanannualbasis. <br />InFY08-09,therewasan11%userrateincreaseoverFY07-08ratesapplieduniformlyacross <br />alluserclasses.Thisrateincreaseprovidedadequaterevenuetomeetcurrentbondcovenants <br />andmeetrequirementstoissue$50.7millioninbondsinFY08-09.Additionally,inOctoberof <br />2008,theCommissionadoptedaninterimuserrateincreaseof7%duetotheclosureofHynix <br />Semiconductor.Thisincreasewasnecessarytoissuenewrevenuebondsandmaintainbond <br />covenantsforexistingbonds.Thetypicalresidentialmonthlywastewaterbill(basedon5,000 <br />gallonsofusage)increasedanadditional$1.10permonthandwentintoeffectonDecember1, <br />2008. <br />InFY09-10,therewasan18%userrateincreaseoverFY08-09ratesapplieduniformlyacross <br />alluserclasses.ThisrateprovidedforOperations,Administration,Capitalprograms,reserves <br />anddebtservicetobefundedatsufficientlevelstomeetFY09-10requirements.Itmetthe <br />capitalandoperatingrequirements,theCommission’sFinancialPlanpolicies,andcovenants <br />associatedwiththeMWMC’s2006and2008revenuebondsaswellasprovidedadequatedebt <br />servicecoverageratiosforanadditional$20millionbondsaleinFY09-10. <br />InFY10-11,therewasa5%userrateincreaseovertheFY09-10ratesprovidingforOperations, <br />Administration,Capitalprograms,reservesanddebtservicetobefundedatsufficientlevelsto <br />meetFY10-11requirements. <br />InFY11-12,therewasa4%userrateincreaseovertheFY10-11ratesprovidingforOperations, <br />Administration,Capitalprograms,reserves,debtservice,anddebtcoveragerequirementstobe <br />fundedatsufficientlevelstomeetFY11-12requirements. <br />Page14PreliminaryFY12-13BUDGETANDCIP <br />