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Metropolitan Wastewater Management Commission Reserves
<br />I i
<br />REGIONAL WASTEWATER PROGRAM
<br />RESERVES
<br />The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a buffer
<br />against substantial fluctuations in revenues and expenditures, resulting in the ability to maintain
<br />stable rates while fully funding operating and capital needs. Further details on the FY OS-06
<br />reserves are provided below.
<br />WORKING CAPITAL RESERVE
<br />The Working Capital Reserve acts as a revolving account that is drawn down and replenished on
<br />a monthly basis to provide funds for payment of Springfield Administration and Eugene
<br />Operations costs prior to the receipt of user fees from the Springfield Utility Board and Eugene
<br />Water and Electric Board. The Administration Working Capital Reserve is $200,000, and the
<br />Operations Working Capital Reserve is $500,000.
<br />OPERATING RESERVE
<br />The Operating Reserve is used to account for accumulated operating revenues net of operating
<br />'!. : expenditures. The Commission has adopted a policy ofbudgeting an Operating Reserve balance
<br />approximately equal to 10% of the adopted operating budget.
<br />The Operating Reserve For FY OS-O6 is budgeted at 10% of the total of Personal Services, '
<br />Materials and Services, and Capital Outlay in accordance with C ommission policy. Additional
<br />- budget detail for the Operating Reserve is provided below.
<br />ADOPTED AMENDED ADOPTED
<br />~ OPERATING RESERVE BUDGET' BUDGET BUDGET
<br />~: ~ ~ ~ FY~04-O5 FY 04-OS FY~OS-06
<br />Beginning Balance $1,617,216 $1,053,472 $2,722,618
<br />'~ User Revenue 14,973,000 14,973,000 15,700,000
<br />Septage Revenue .343,000 ' 343,000 450,000
<br />-, Other Revenue 456,494 456,494 46,809
<br />`; Interest 69,000. 69,000 64,900
<br />Transfer From Capital Reserve 0 0 3,150,000
<br />~ i res 1 07
<br />i , Expend to (1,616,7 ) 11 18 840
<br />( ,9 ) 12 664 568
<br />( )
<br />.Debt Service 0 0 (762,500)
<br />Transfer to Reserves (4,684,793) (4,679,273) (7;486,440)
<br />'', ~ '~ Ending Balance $1,157,210
<br />,;
<br />;. $296,853 $1,220,819
<br />Page 38 FY OS-06 BUDGET AND CIP
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