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Metropolitan Wastewater Management Commission Reserves
<br />transferred to the operating reserves from the capital fund. This is removed in the FY 07-08
<br />budget because the State Department of Justice determined that MWMC is not an eligible
<br />borrower.
<br />OPERATING RESERVE
<br />The Operating Reserve is used to account for accumulated operating revenues net of operating
<br />expenditures (including other reserves). The Commission has adopted a policy of budgeting an
<br />Operating Reserve balance approximately equal to 10% of the adopted operating budget.
<br />The Operating Reserve for FY 07-08 is budgeted at 10% of total Personal Services, Materials
<br />and Services, and Capital Outlay in accordance with Commission policy. Additional budget
<br />detail for the Operating Reserve is provided below.
<br />EXHIBIT 7
<br />
<br />
<br />OPERATING RESERVES ADOPTED
<br />BUDGET
<br />FY 06-07 AMENDED
<br />BUDGET
<br />FY 06-07 ADOPTED
<br />BUDGET
<br />FY 07-08
<br />Beginning Balance 4,552,144 5,247,283 7,133,629
<br />.User Fee Revenue 16,854,000. 16,854,000 18,635,400
<br />Septage Revenue 420,000 420,000 453,600
<br />Other Revenue 544,615 834,614 1,591;635
<br />Interest 271,000 271,000 221,000
<br />Transfer from Capital Reserve 4,000,000 0 0
<br />Personal Services (7,687,904) (7,687,904) (8,089,011)
<br />Materials & Services (5,261,130) (5,536,552) (5,624,295)
<br />Capital Outlay (86,000) (86,000) (54,500)
<br />Interfund Transfers (3,829,646) (3,829,646) (4,705,968)
<br />Transfer to Bond Debt Service Fund 0 0 (1,234,029)
<br />Debt Service (1,473,431) (1,200,000) 0
<br />WORKING CAPITAL (700,000) (700,000) (900,000)
<br />RATE STABILITY RESERVE (1,650,405) (1,350,405) (4,052,461)
<br />RATE STABILIZATION RESERVE 0 (2,000,000) (2,000,000)
<br />BOND RESERVE (4,000,000) 0 0
<br />STATE REVOLVING FUND LOAN RESERVE (590,000) 0 0
<br />OPERATING RESERVE 1,363,243 1,236,390 1,375,000
<br />CAPITAL RESERVES
<br />The MWMC Capital Budget includes five reserves: the Equipment Replacement Reserve, SDC
<br />Reserves (Reimbursement, Improvement, and Contingency), and the Capital Reserve. These
<br />reserves accumulate revenue to help fund capital projects including equipment replacement and
<br />Page 20 FY 07-08 BUDGET AND CIP
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