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HomeMy WebLinkAboutItem 2C: Ratification of MWMC FY09 Budget and CIP ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Ratification of the Metropolitan Wastewater Management Commission (MWMC) FY09 Regional Wastewater Program Budget and Capital Improvements Program Meeting Date: April 28, 2008 Agenda Item Number: 2C Department: Public Works Staff Contact: Peter Ruffier www.eugene-or.gov Contact Telephone Number: 682-8606 ISSUE STATEMENT This agenda item relates to the ratification of the FY09 budget for the regional wastewater program serving the Eugene/Springfield metro area, as established under the 1977 Intergovernmental Agreement (IGA) between the City of Eugene, the City of Springfield, and Lane County. The regional wastewater program is managed by the Metropolitan Wastewater Management Commission (MWMC) pursuant to the provisions of the IGA. The regional wastewater budget provides funds for all operations, maintenance, administration, and capital project management and implementation for the Eugene/Springfield Water Pollution Control Facility, the Biosolids Management Facility, the Biocycle Farm, the Reclaimed Water Facility, and regional wastewater pump stations. BACKGROUND The purpose of the regional wastewater program is to protect public health and safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and the regional partners are committed to providing these services in a manner that is effective, efficient, and which meets legal requirements and customer service expectations. Since the mid-1990s the commission and the regional wastewater program staff have worked together to identify the following key outcomes which focus on what the fiscal budget will serve to accomplish: 1.High environmental standards; 2.Fiscal management that is effective and efficient; 3.A successful intergovernmental partnership; 4.Maximum reliability and useful life of regional assets and infrastructure; 5.Public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives for maintaining water quality and a sustainable environment. These key outcomes, or goals, are in direct alignment with the City of Eugene Council Goals. Every year the MWMC develops a budget that covers resource needs of the operations, maintenance, and capital improvement activities for the regional wastewater program. The budget combines the portions of the City of Eugene and City of Springfield budgets that are dedicated to the regional F:\CMO\2008 Council Agendas\M080428\S0804282C.doc wastewater program. The commission conducted a public hearing on the proposed draft budget for FY09 and subsequently adopted the budget on March 27, 2008. The commission’s adopted budget is attached for council consideration (see Attachment A). The budget reflects the continuing focus on design and construction of capital improvements in the approved 2004 Facilities Plan, needed to ensure that the operation of the Regional Wastewater Facilities meets increasing environmental regulations and that collection and treatment capacity will be available to provide for growth in the service area. The adopted budget includes the financial resources necessary to support a 5% increase in administrative costs and a 6% increase in operations and maintenance expenses. During the March 27th meeting, the commission approved an overall 11% increase in the regional wastewater user rates to generate revenue for the proposed budget and, pursuant to the recommendations of the MWMC financial advisor, to address needs for future CIP financing consistent with the commission’s Financial Plan policies and net revenue objectives. RELATED CITY POLICIES This work session topic is related to the City Council goals of "Sustainable Development" and "Effective, Accountable, Municipal Government." COUNCIL OPTIONS 1. Approve motion to ratify budget. 2. Return the FY09 MWMC Regional Wastewater Program Budget and Capital Improvements Program to MWMC with specific requests for modification and reconsideration. CITY MANAGER’S RECOMMENDATION The City Manager recommends ratification of the proposed FY09 MWMC Budget and Capital Improvements Program. SUGGESTED MOTION Move to ratify the FY09 MWMC Budget. ATTACHMENTS A. Transmittal letter and MWMC FY09 Proposed Regional Wastewater Program Budget and Capital Improvements Program FOR MORE INFORMATION Staff Contact: Peter Ruffier Telephone: 682-8606 Staff E-Mail: Peter.J.Ruffier@ci.eugene.or.us F:\CMO\2008 Council Agendas\M080428\S0804282C.doc