Laserfiche WebLink
MetropolitanWastewaterManagementCommissionReserves <br />EQUIPMENTREPLACEMENTRESERVE <br />TheEquipmentReplacementReserveaccumulatesreplacementfundingforthreetypesof <br />equipment:1)major/stationaryequipmentitemscostinglessthan$200,000withusefullivesof <br />20yearsorless;2)fleetvehiclesmaintainedbytheEugeneWastewaterDivision;and3) <br />computersthatservetheEugeneWastewaterDivision.ContributionstotheEquipment <br />ReplacementReserveintheFY12-13budgettotal$843,339,additionalbudgetdetailsare <br />providedbelow. <br />TheEquipmentReplacementReserveisintendedtoaccumulatefundsnecessarytoprovidefor <br />thetimelyreplacementorrehabilitationofequipment,andmayalsobeborrowedagainstto <br />provideshort-termfinancingofcapitalimprovements.Anannualanalysisisperformedonthe <br />EquipmentReplacementReserve.Theannualcontributionissetsothatallprojected <br />replacementswillbefundedovera20-yearperiodandattheendofthe20-yearperiod,the <br />reservewillcontainreplacementfundsforallequipmentprojectedtobeinuseatthattime. <br />Estimatesusedintheanalysisincludeinterestearnings,inflationratesandusefullivesforthe <br />equipment. <br />SYSTEMDEVELOPMENTCHARGE(SDC)RESERVES <br />SDCsarerequiredaspartoftheMWMCIGA.Theyareconnectionfeeschargedtonewusersto <br />recoverthecostsrelatedtosystemcapacity,andarelimitedtofundingCapitalPrograms.The <br />purposeoftheSDCReservesistocollectandaccountforSDCrevenuesseparatelyfromother <br />revenuesources,inaccordancewithOregonstatutes.TheCommission’sSDCstructureincludes <br />acombinationof“Reimbursement”and“Improvement”feecomponents.EstimatedSDC <br />revenuesforFY12-13areapproximately$651,500.Budgetedexpendituresinclude$1,200,000 <br />fromImprovementFeestofundportionsoftheannualdebtservicepaymentsonthe2006and <br />2008revenuebonds.TheprojectedbeginningSDCReservebalanceonJuly1,2012is <br />$1,698,594. <br />Page22PreliminaryFY12-13BUDGETANDCIP <br />