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Metropolitan Wastewater Management Commission Reserves
<br />" RATE STABLITY RESERVE
<br />The Rate Stability Reserve was established to implement the Commission's objective of
<br />maintaining stable rates. It is intended to hold revenues in excess of the current year's
<br />operating and capital requirements, in order to avoid "rate spikes" in future years .
<br />RATE STABILITY RESERVE
<br />ADOPTED AMENDED ADOPTED
<br />BUDGET BUDGET BUDGET
<br />FY 03-04 FY 03-04 FY 04-OS
<br />Beginning Balance
<br />$0 $0 $0
<br />Transfer From Operating Reserve 0 415,123 1,294,688
<br />Transfer to Operating Reserve 0 0 0
<br />Ending Balance $0 $415,123 $1,294,688
<br />CAPITAL RESERVE
<br />The Capital Reserve accumulates funds transferred from the Operating Reserve for the
<br />purpose of funding the CIP, Major Capital Outlay and Major Rehabilitation Program
<br />costs. The intent is to minimize rate impacts associated with fluctuating Capital Program
<br />costs in any given year. The FY 04-OS Budget includes a contribution from the
<br />Operating Reserve of $3,000,000 to maintain this reserve and to cover CIP and Major
<br />Rehabilitation Program costs. The beginning balance on July 1, 2004 is projected to be
<br />$2,131,159. Additional budget detail on the CIP, Major Capital Outlay and Major
<br />Rehabilitation Program reserves is provided below.
<br />CAPITAL RESERVE "
<br />ADOPTED AMENDED ADOPTED
<br />BUDGET BUDGET BUDGET
<br /> FY 03-04 FY 03-04 FY 04-OS
<br />Beginning Balance $9,403,610 $9,846,742 $7,250,248
<br />Transfer From Operating Reserve 750,000 750,000 3,000,000
<br />Transfer From CSD 142,000 142,000 0
<br />Interest 200,830 200,830 200,911
<br />Revenue Bond Proceeds
<br />Xfer to Fund 12
<br />0 0 6,500,000
<br />0 0 0
<br />Funding For Capital Outlay 0 0 (250,000)
<br />Funding For Major Rehab (182,000) (458,078) (350,000)
<br />Funding For CIP (4,510,000) (5,030,416) (14,220,000)
<br />Ending Balance $5,804,440, $5,451,078 $2,131,159
<br />* Revenue bond proceeds are indicated in order to balance budget expenditures. Because projected
<br />expenditures are less than the budgeted amount, no bond sale is planned for FY 04-05.
<br />EQUIPMENT REPLACEMENT RESERVE
<br />The Equipment Replacement Reserve accumulates replacement funding for three types of
<br />equipment: 1) major/stationary equipment items costing less than $200,000 with useful
<br />lives of 20 years or less; 2) fleet vehicles maintained by the Eugene Wastewater
<br />Division; and 3) computers that serve the Eugene Wastewater Division. Contributions to
<br />Page 35 FY 04-OS BUDGET AND CIP
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