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Item 3: Action - Ratification of FY13 MWMC Budget
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Item 3: Action - Ratification of FY13 MWMC Budget
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5/14/2012
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MetropolitanWastewaterManagementCommissionSpringfieldBudgetDetail <br />$25,000computersoftwarelicensefeerepresentstheMWMC’sproportionateshareofthe <br />City’sAssetManagementSystemReplacementProject. <br />The$25,000sharereflects2.5%oftheoverallprojectbudget($994,000).Theasset <br />managementsystemupgradeincludesintegrationwithothersystemssuchaspipeddrainage <br />andsurfacewaterwayfacilitiestosupportflowmonitoringandinfiltration/inflowprograms <br />andintegrationwiththeCity’sfacilitiesmanagementsystem.Thesystemsupports <br />engineeringdesigninprogramssuchasAutoCADandfacilitiesplanninginArcGIS.As <br />systemimplementationoccursoverthenexttwoyears,integratedsupportfordeveloping <br />capitalplans,andschedulesandimplementationplansforfacilitiesimprovementand <br />expansionwillresultfromtheAssetManagementSystemReplacementProject.MWMC’s <br />$25,000shareisone-timeinnatureaspartofthesystemacquisitionandimplementation. <br />On-goingcostsarecurrentlyprojectedatabout$5,300annually,aftersystem <br />implementation,foraproportionateshareofthetechnicalservicesupportandmaintenance <br />agreement. <br />Regulatory(WPCF/NPDES)Permits-$128,100,anincreaseof$9,286or8% <br />TheregulatorypermitfeeamountinFY12-13fortheWaterPollutionControlFacility <br />includingPretreatmentisprojectedabovetheFY11-12budgetamount. <br />InternalFacilityRent-$39,775 <br />InternalFacilityRentisbudgetedat$39,775inFY12-13andrepresentsaproportionate <br />shareofCityfacilitiesthatareutilizedinsupportoftheMWMC.TheInternalFacilities <br />RentisdesignedtoenabletheCity’sGeneralFundtocaptureareasonablereturnonthe <br />investmentitmadeinpurchasingtheCityHallbuilding.Thischargeiscalculatedforall <br />funds,butisonlychargedtocertainenterpriseandspecialrevenuefunds.Historically, <br />chargeshavebeenappliedtotheMWMCbudgetwiththeexceptionofFY11-12andFY <br />10-11(asdisplayedinExhibit9),whentheCity’sbudgetprocessdidnotincludeInternal <br />FacilityRents.ForcomparisonpurposesInternalFacilityRentactualcostswere$34,897in <br />FY09-10and$42,592inFY08-09.ThecurrentFY12-13rateassumes$1persquarefoot, <br />permonth,whichisestimatedtobeatypicalrateofofficespaceindowntownSpringfield. <br />IndirectCosts-$322,103,anincreaseof$110,383or52% <br />The$110,383increaseinIndirectCostsinFY12-13,whencomparedtoFY11-12isdueto <br />achangeinmethodologyusedincalculatingIndirectCostsbasedonamethodology <br />approvedbythefederalgovernmentandisinlinewiththeMWMCIntergovernmental <br />Agreement(IGA).SpecificallytheIGAOperations,MaintenanceandAdministrative <br />ServicesAgreement(April19,2001)Section2PaymentofServices,subsection2.1. <br />Page28PreliminaryFY12-13BUDGETANDCIP <br />
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