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City Manager's Office <br /> Ciry of Eugene <br /> 777 Pearl Street Room 105 <br />MLMO~L~LL~l'\ 1~UM Eugene, Oregon 97401-2793 <br />(541) 682-5010 <br /> (541) 682-5414 FAX <br /> www.eugene-or.gov <br />Date: October 2, 2008 <br />To: Mayor Piercy and City Council <br />From: Jon R. Ruiz, City Manager <br />682-5510 <br />Subject: MWMC Potential Regional Wastewater Fee Rate Increase <br />The Metropolitan Wastewater Management Commission (MWMC) is considering a mid-year <br />rate increase to the regional wastewater fee. MWMC is in the midst of a major capital <br />improvement program estimated to cost approximately $200 million, which will be funded in <br />part by revenue bonds. The requirements of the bonds, coupled with recent significant loss of <br />revenue due to the closure of tfie Hynix manufacturing facility, have resulted in the need to <br />evaluate options to address the overall financial support of the regional wastewater facility. <br />Several options related to managing wastewater expenses and revenues were presented to the <br />MWMC at their September 25 meeting including scenarios for wastewater user rate increases. <br />The impact of the rate increases presented range from 63 cents to $1.10 per month on the average <br />residential sewer bill. A public hearing was held in conjunction with the September Commission <br />meeting and MWMC is scheduled to make their final recommendation on October 2. <br />For your information, we are not presently contemplating a mid-year rate increase for the local <br />wastewater service component as we will instead address any associated revenue and service <br />level issues as part of the FY10 budget building process. <br />