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MetropolitanWastewaterManagementCommissionReserves <br />REGIONALWASTEWATERPROGRAM <br />RESERVES <br />TheRWPmaintainsreservefundsfordedicatedpurposetosustainstablerateswhilefully <br />fundingoperatingandcapitalneeds.Commissionpoliciesandguidance,whichdirectthe <br />amountofreservesappropriatedonanannualbasis,arefoundinthe2005MWMCFinancial <br />Plan.FurtherdetailsontheFY12-13reservesareprovidedbelow. <br />OPERATINGRESERVES <br />TheMWMCOperatingBudgetincludessixseparatereserves:theWorkingCapitalReserve, <br />RateStabilityReserve,RateStabilizationReserve,RevenueBondReserve,SRFReserve,and <br />theOperatingReserve.Revenuesareappropriatedacrossthereservesinaccordancewith <br />Commissionpolicyandexpenditureneeds.Eachreserveisexplainedindetailbelow. <br />WORKINGCAPITALRESERVE <br />TheWorkingCapitalReserveactsasarevolvingaccountthatisdrawndownandreplenishedon <br />amonthlybasistoprovidefundsforpaymentofSpringfieldAdministrationandEugene <br />OperationscostspriortothereceiptofuserfeesfromtheSpringfieldUtilityBoardandEugene <br />WaterandElectricBoard.TheWorkingCapitalReserveissetat$900,000forFY12-13, <br />$200,000ofwhichisdedicatedtoAdministrationand$700,000isdedicatedtoOperations. <br />RATESTABILITYRESERVE <br />TheRateStabilityReservewasestablishedtoimplementtheCommission’sobjectiveof <br />maintainingstablerates.Itisintendedtoholdrevenuesinexcessofthecurrentyear’soperating <br />andcapitalrequirementsforuseinfutureyears,inordertoavoid“ratespikes.”Theamount <br />budgetedonanannualbasishasbeensetat$2,000,000,withanyadditionalnetrevenuesbeing <br />transferredtothecapitalreserveforfutureprojects. <br />RATESTABILIZATIONRESERVE <br />TheRateStabilizationReservecontainsfundstobeusedatanypointinthefuturewhennet <br />revenuesareinsufficienttomeetthebondcovenantcoveragerequirement.TheCommission <br />shallmaintaintheRateStabilizationaccountaslongasbondsareoutstanding.InFY12-13no <br />additionalcontributiontothisreserveisbudgetedandthebalanceatJune30,2013,willremain <br />at$2,000,000. <br />Page20PreliminaryFY12-13BUDGETANDCIP <br />