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'' Metropolitan Wastewater Management Commission Reserves
<br />i
<br />I
<br />~ REGIONAL WASTEWATER PROGRAM
<br />RESERVES
<br />The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a
<br />buffer against substantial fluctuations in revenues and expenditures, resulting in the
<br />ability to maintain stable rates while fully funding operating and capital needs. Further
<br />details on the FY 04-05 reserves are provided below.
<br />WORKING CAPITAL RESERVE
<br />-, The Working Capital Reserve acts as a revolving account that is drawn down and
<br />replenished on a monthly basis to provide funds for payment of Springfield
<br />`~:
<br />Administration and Eugene Operations costs prior to the receipt of user fees from the
<br />-, Springfield Utility Board and Eugene Water and Electric Board. The Administration
<br />Working Capital Reserve is $200,000, and the operations Working Capital Reserve is
<br />I _ : $500,000.
<br />OPERATING RESERVE
<br />The Operating Reserve is used to account for accumulated operating revenues net of
<br />operating expenditures. The Commission has adopted a policy of maintaining a
<br />minimum Operating Reserve balance approximately equal to 10% of the adopted
<br />operating budget.
<br />The Operating Reserve For FY 04-OS is budgeted at 10% of the total of Personal
<br />Services, Materials and Services, and Capital Outlay in accordance wi th Commission
<br />i ' policy. Additional budget detail for the Operating Reserve is provided below.
<br />I I ADOPTED AMENDED ADOPTED
<br />(I
<br />~- OPERATING RESERVE
<br />BUDGET
<br />BUDGET
<br />BUDGET
<br /> FY 03-04 FI' 03-04 FY 04-OS
<br />Beginning Balance $451,870 $1,264,188 $1,617,216
<br />-' User Revenue 11,265,000 11,265,000 14,973,000
<br />Septage Revenue 377,000 377,000 343,000
<br />Other Revenue 277,765 277,765. 456,494
<br />`-' Interest 23,600 23,600 69,000
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<br />Expenditures
<br />~._!
<br />(10,149,817)
<br />(10,547,012)
<br />(11,616,707)
<br />', Transfer to Reserves (1,231,098) (1,646,221) (4,684,793)
<br />Ending Balance $1,014,320 $1,014,320 $1,157,210
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<br />Page 34 FY 04-05 BUDGET AND CIP
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