New Search
Metropolitan Wastewater Management Commission Budget and Program Summary <br />®PEI2ATII®TG ~ITDGET Al~I)12ATE IIIST®It~' <br />The graphs on the following page show afive-year Regional Operating Budget comparison, and <br />Regional Residential Sanitary Sewer costs over afifteen-year period. Because the Equipment <br />Replacement and Major Infrastructure Rehabilitation programs are managed in the Eugene <br />Operating Budget, these programs are incorporated into both the five-year Regional Operating <br />Budget comparison graph (on the following page) and the Five-Year Capital Programs <br />comparison graph on page 44. <br />As shown on the following graph, regional sewer user charges remained highly stable from 1992 <br />through 2004. During the late 1990s, considerable efforts were made by MWMC to absorb <br />increased costs due to inflation and service level increases through improvements in <br />organizational efficiency and effectiveness. However, as the Regional Wastewater Facilities <br />approached the end of their original design lives, and increased regulatory requirements <br />emerged, MWMC completed a comprehensive update to its Facilities Plan in 2004. <br />This Plan demonstrated the need for a significant capital investment in new and expanded <br />facilities to meet environmental performance requirements and capacity to serve the community <br />through 2025. Although a portion of these capital improvements can be funded through system <br />development charges (SDCs), much of the funding for approximately $196 million (in 2006 <br />dollars) in capital improvements over the twenty-year period will come from user charges. Since <br />2004, this has become the major driver of MWMC's need to increase sewer user rates on an <br />annual basis. <br />The FY 07-08 RWP operating budget is based on an 8% user rate increase over FY 06-07 rates <br />applied uniformly across all user classes. This rate recommendation was provided by the <br />MWMC Financial Advisor in 2006. It is intended to meet capital and operating requirements, <br />the Commission's Financial Plan policies, and covenants associatedwith MWMC's 2006 sale of <br />revenue bonds. <br />An 8% increase in the MWMC user charge will increase the typical residential monthly. <br />wastewater bill (based on 5,000 gallons of usage) from $13.15 in FY 06-07 to $14.21in FY 07- <br />08. This is an increase of about $1.06 per month. <br />Page 13 FY 07-08 BUDGET AND CIP <br />