HomeMy WebLinkAboutItem 3C: Ratification of MWMC FY14 Budget
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UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Ratification of the Metropolitan Wastewater Management Commission (MWMC)
FY14 Regional Wastewater Program Budget and Capital Improvements Program
Meeting Date: May 13, 2013 Agenda Item Number: 3C
Department: Public Works Staff Contact: John Huberd
www.eugene-or.gov Contact Telephone Number: 541-682-8603
ISSUE STATEMENT
This agenda item relates to the ratification of the FY14 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 regional operations, maintenance, administration, and
capital project management and implementation for regional facilities. These include 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 will achieve, sustain, and promote balance between
community, environmental, and economic needs while meeting customer service expectations.
The commission and the regional wastewater program staffs have worked together to identify the
following key outcomes:
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 and goals are in direct alignment with the City of Eugene Council goals.
Every year MWMC develops a budget that covers resource needs of the operations, maintenance,
and capital improvement activities for the regional wastewater program. These activities are
divided between Eugene and Springfield. The regional budget combines the portions of the City of
Eugene and City of Springfield budgets that are dedicated to the regional wastewater program.
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The commission conducted a public hearing on the proposed draft budget for FY14 and
subsequently adopted the budget on April 12, 2013. The commission’s adopted budget is
available at the City Manager’s Office and online at http://www.eugene-
or.gov/DocumentCenter/View/12058 . The budget reflects the continuing focus on design and
construction of capital improvements in the approved 2004 Facilities Plan. The Plan identified
improvements needed to ensure the operation of the Regional Wastewater Facilities meets
increasing environmental regulations. The improvements identified in the Plan also ensure the
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 the regional program. The
personnel, operations and maintenance, and capital budget increases by 1.1 percent from the
FY13 budget.
During the April 12 meeting, the commission approved an overall three percent 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 Capital
Improvement Program (CIP) financing consistent with the Commission’s Financial Plan policies
and net revenue objectives. The revenues generated by the user rate increase are consistent with
the MWMC's approved financial plan to maintain an unenhanced credit rating of A and adequately
fund operations, administration, capital financing, debt service, and reserves.
RELATED CITY POLICIES
This action item is related to the City Council goals of "Sustainable Development," "Effective,
Accountable, Municipal Government" and “Fair, Stable and Adequate Financial Resources.”
COUNCIL OPTIONS
1. Approve motion to ratify the FY14 MWMC budget.
2. Return the FY14 MWMC Regional Wastewater Program Budget and Capital Improvements
Program to MWMC with specific requests for modification and reconsideration.
CITY MANAGER’S RECOMMENDATION
Ratify the proposed FY14 MWMC Budget and Capital Improvements Program.
SUGGESTED MOTION
Move to ratify the FY14 MWMC Budget.
ATTACHMENTS
A.Transmittal Letter
B.MWMC FY14 Proposed Regional Wastewater Program Budget and Capital Improvements
Program – Copy Available in City Manager’s Office and online at http://www.eugene-
or.gov/DocumentCenter/View/12058
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FOR MORE INFORMATION
Staff Contact: John Huberd, Finance and Administration Manager, Wastewater Division
Telephone: 541-682-8603
Staff E-Mail: john.c.huberd@ci.eugene.or.us
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PARTNERS IN
WASTEWATER
MANAGEMENT
www.mwmcpartners.org_
MWMC
Commission
Marilee Woodrow
Springfield City Councilor
MWMC President
Faye Stewart
Lane County Commissioner
MWMC Vice- President
George Brown
Eugene City Councilor
Bill Inge
Lane County Citizen
Hilary Loud
Eugene Citizen
Doug Keeler
Springfield Citizen
Walt Meyer
Eugene Citizen
Administration
Ron Bittler
MWMC General Manager
City of Springfield
225 Fifth Street
Springfield, Oregon 97477
(541) 726 -3694
FAX (541) 726 -2309'
Operations
Michelle Cahill
Director of Wastewater Div
City of Eugene
410 River Avenue
Eugene, Oregon 97404
(541) 682 -8600
FAX (541) 682 -8601
Metropolitan Wastewater Management Commission
A M SPRINGFIELD
OREGON
partners in wastewater management
May 2, 2013
Mr. Jon Ruiz, City Manager
City of Eugene
777 Pearl Street
Eugene, OR 97401
Subject: Metropolitan Wastewater Management Commission (MWMC)
2013 -14 Regional Wastewater Program (RWP) Budget and
Capital Improvements Program (CIP)
Dear Mr. Ruiz:
On April 12, 2013 the MWMC held a public hearing on the fiscal year (FY) 2013 -14
Regional Wastewater Program (RWP) Budget and Capital Improvements Program
(CIP). At this meeting, the FY 2013 -14 RWP Budget and CIP were approved. The
RWP Budget funds operating and capital project requirements, and maintains
targeted contributions to reserves.
Consistent with the Intergovernmental Agreement, the RWP Budget and CIP need
to be ratified by the governing bodies of Eugene, Springfield and Lane County prior
to final adoption by MWMC. Please forward the enclosed budget and CIP
documents to the Eugene City Council for their consideration on May 13, 2013. If I
can be of any additional assistance, please contact me at 726 -3694.
Thank you for your consideration and assistance in this matter.
Sincerely,
Ron Bittler
MWMC General Manager