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Metropolitan Wastewater Management Commission Budget Message
<br />BUDGET MESSAGE
<br />To the Metropolitan Wastewater Management Commission:
<br />I am pleased to present the Metropolitan Wastewater Management Commission's (MWMC)
<br />budget for fiscal year (FY) 2007-08. This budget funds operations, administration, and capital
<br />projects planned for the Regional Wastewater Program (RWP). The MWMC administration and
<br />Capital Improvements Program (CIP) components of the budget are reflected in the City of
<br />Springfield's RWP budget. The operations, maintenance, equipment replacement, and major
<br />rehabilitation components are reflected in the City of Eugene's RWP budget.. The Cities'
<br />Industrial Pretreatment Programs, managed locally in compliance with the MWMC Model
<br />Ordinance, also are included in the RWP budget.
<br />This year's adopted budget reflects a continued focus on design and construction of capital
<br />improvements planned to ensure that operation of the Regional Wastewater Facilities meets
<br />environmental regulations, and thatincreased capacity will be provided to meet the needs of a
<br />growing service area. The one- and five-year CIP, which are included in this budget document,
<br />have been derived from the MWMC Facilities Plan, which was adopted by MWMC and the
<br />Eugene, Springfield and Lane County governing bodies in 2004. The budgeted amount for FY
<br />07-08 Facilities Plan projects total $76,226,346. The FY 07-08 CIP also includes Major
<br />Rehabilitation and Equipment Replacement capital projects, budgeted at $270,000 and $486,534,
<br />respectively. For FY 07-08, the combination of new projects and continuing projects carried
<br />forward from FY 06-07 results in a total CIP budget of $76,982,880.
<br />The FY 07-08 RWP Operating Budget for Personnel Services, Materials and Services and
<br />Capital Outlay expense is $13,773,806. Consistent with the Commission's Financial Plan and
<br />.~ policies, the FY 07-08 includes budgeted contributions to several reserves totaling $4,696,823.
<br />.Finally, the FY 07-08 budget includes debt service payments totaling $3,702,088 as scheduled
<br />for repayment of $50 million of revenue bonds issued in November 2006, to fund the Facilities
<br />I Plan capital improvements.
<br />Revenue sources necessary to fund Operations, Capital programs, debt service requirements and
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<br />reserves include user charges, system development charges (SDCs), interest earnings and a small
<br />amount of miscellaneous revenues. For FY 07-08, user fee revenues. (including septage service)
<br />,~ are projected at $19,089,000. This level of revenue is projected based. on an 8% increase in
<br />:! regional wastewater user fees, as recommended by the MWMC financial advisor in order to meet
<br />the Commission's Financial Plan policies and net revenue objectives. Revenues from SDCs are
<br />projected at $1,770,000, which incorporate a 4.2% inflationary factor.
<br />Iri summary, the adopted FY 07-08 budget funds operations and administration sufficiently to
<br />maintain existing levels of service, and to meet the environmental and other legal obligations of
<br />the Commission. It funds Capital Programs at a level necessary to implement the 2004 Facilities
<br />Plan objectives for compliance with the National Pollutant Discharge Elimination System
<br />(NPDES) permit issued to MWMC and the two Cities. Finally, this budget implements the
<br />Commission's adopted Financial Plan policies regarding reserves, asset management, and capital
<br />financing.
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<br />,__, ~ Page 1 FY 07-08 Budget
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