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i <br />' '; <br />Metropolitan Wastewater Management Commission Budget Message <br />ongoing administration and operations are for non-discretionary costs such as fees, utilities and <br />employee benefits, as well as one-time contractual expenses. The adopted FY OS-06 RWP " , <br />Operating Budget maintains the Commission's Financial Plan and capital financing strategies, <br />including funding all reserves at the Commission's and the MWMC Financial Advisor's stated <br />targets. <br />The combined RWP FY OS-06 Operating Budget includes increases of 14% in Personnel <br />Services, 6% in Materials and Services, and 47% in contributions to reserves over the originally <br />adopted FY 04-OS budget. The FY OS-06 RWP Operating Budget also includes a new Debt <br />Service budget of $762,500. The significant increase in reserves and debt service requirements <br />relate to meeting CIP financing requirements. The revenues required to fund the FY OS-06 <br />Operating Budget will necessitate a 6% user rate increase which is consistent with the <br />Commission's three year rate strategy. This new rate will result in an average residential billing <br />of $11.96 per month, based on a typical residential water consumption of 5,000 gallons, which is <br />about a $.68 increase. <br />Budget Highlights <br />• FY OS-06 staffing allocations to the RWP have increased modestly, in order to accommodate <br />the expanded workload associated with the operation of the Biosolids Management Facility <br />and Biocycle Farm, and to address shifting priorities and funding allocations. The total FTE <br />for the RWP in FY OS-06 is budgeted at 86.85 as compared to 84.41 in FY 04-05. This <br />includes a 0.3 FTE increase ~in Springfield FTE associated with distribution of staff time <br />between regional and local programs, and a minor reorganization of RWP and Pretreatment <br />Program functions. This also includes an increase of 2.14 FTE in Eugene staffing to support <br />increased workload at the Biosolids Management Facility and to allocate staff time properly <br />between regional and local programs. <br />• Including changes in staffing, RWP Personnel Services costs will increase by about 14% <br />overall which reflects the combined effects of a projected 2.0-2.9% cost of living adjustment <br />for Eugene, and a 2.6% cost of living adjustment for Springfield. The remainder of the <br />increase is due primarily to higher rates for health insurance and PERS cost increases. <br />• The FY OS-06 Materials and Services budget will increase 6%, reflecting staff s efforts to <br />maintain the overall RWP budget as flat as possible, while accommodating unavoidable <br />increases in areas such as utilities and chemicals, and one-time contractual services expenses <br />Budget Assumptions <br />The following assumptions and/or projections form the basis of the FY OS-06 RWP Operating <br />Budget: <br />The MWMC Key Outcomes and corresponding performance measures for FY OS-06, along <br />with the MWMC Services Agreement; and the capital financing requirements of the MWMC <br />Facilities Plan, form the basis for the RWP Work Plan and Operating Budget. <br />Page 2 FY OS-06 BUDGET AND CIP <br />