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Metropolitan Wastewater Management Commission Capital Improvement Program <br />For each fiscal planning cycle, only one year of budget authority is appropriated. The remaining <br />four years of the CIP are important and useful for fiscal and work planning purposes, but the <br />funds in the outer years of the CIP are only planned for, not appropriated. The full amount of <br />obligated multi-year project costs is typically appropriated in the first year of the project; unless a <br />smaller subset of the project, such as project design, can be identified and funded without <br />budgeting the full projected project cost. For these multi-year contracts, unspent funds from one <br />fiscal year will be carried over to subsequent fiscal years until the project is completed. <br />The RWP CIP reflects projected price changes over time that affect the cost of materials and <br />services. Until about 2003, the 20-year average Engineering News Record inflationary factor for <br />construction served as a good predictor for future inflation and was used for projecting MWMC <br />costs. In recent years however, local construction cost inflation has exceeded the ENR average <br />and MWMC has modified its inflationary projections accordingly. The RWP CIP assumes <br />general prices change at five percent per year over the planning period. This does not reflect a <br />projection of any single inflation index but was developed by CH2M-Hill to reflect a reasonable <br />aggregate rate of increases for the next five years, based on the historical activity of both <br />construction and non-construction price indices. Indices tracked include the Engineering News <br />Record Construction Cost Index, the Turner Building Cost Index, and the Consumer Price Index. <br />Regional Wastewater Program Capital Projects Budget <br />The following is a summary of the status of capital projects which are currently budgeted in the <br />FY 06-07 Regional Wastewater Program Capital Budget and those included in the FY 07-08 <br />Capitai Budget. <br />The Regional Wastewater Program Capital Projects budget consists of the projects in the first <br />year of the FY 07-12 five-year CIP, totaling $76,226,346, plus the Capital Projects managed by <br />Eugene staff at the Wastewater Facility (consisting of Equipment Replacement, Major Capital <br />Outlay, and Major Rehabilitation), totaling $756,534. <br />Information regarding each project included in the FY 07-08 Capital Projects budget is included <br />in the CIP project summary sheets included in this document. Each summary sheet provides a <br />description of the project, the project purpose and what is driving the timing of the project, the <br />funding schedule, and the expected final cost and cash flow for the project. For those projects <br />which are in progress, a short status report is included on the summary sheet. <br />Completed Capital Projects (Scheduled Completion by June 30, 2007) <br />In FY 06-07, several on-going capital projects are being completed and closed out. Those. <br />projects projected to be closed out in FY 06-07 are listed below. No CIP summary sheets are <br />included in this document for these projects because there is no expected carryover of project. <br />funds to FY 07-08, and therefore no requested budget for these projects in FY 07-08. All <br />projects completed in FY 06-07 have been completed within the Commissiorrapproved capital <br />budgets for each project. <br />All components of the first phase of the Biocycle Farm Poplar Plantation were successfully <br />completed and accepted in FY 06-07, including the Biocycle Farm Pump Station Modifications- <br />Page 39 FY 07-08 BUDGET AND CIP <br />