Metropolitan Wastewater Management Commission Budget Message ' ' <br />Budget Highlights <br />• FY 04-OS staffing allocations to the RWP have increased, in order to accommodate the ; 1 <br />increased workload associated with the management, design and funding, of new capital <br />projects. The total FTE for the RWP in FY 04-05 is budgeted at 84.41 as compared to 76.54 <br />in FY 03-04; this includes 5.65 FTE for Springfield associated with capital projects and <br />document archiving. The Eugene Wastewater Division also added 2.22 FTE to address <br />shifting priorities and funding allocations. <br />• With the exception of new staff, RWP personnel services costs will increase by about 3.8% <br />overall which reflects the combined- effects of prof ected 1 % cost of living adjustment for <br />Eugene, and a 2.5% cost of living adjustment for Springfield. The remainder of the increase <br />is largely due to higher rates for health insurance. ~' _! <br />• The proposed FY 04-OS materials and services budget reflects staff's efforts to maintain the ;- , <br />overall RWP budget as flat as possible, while accommodating new staff and unavoidable ' <br />increases in areas such as insurance premiums. <br />Budget Assumptions <br />The following assumptions and/or projections form the basis of the FY 04-05 RWP Operating <br />Budget: <br />• The MWMC Key Outcomes and corresponding performance measures for FY 04-05, along <br />with the MWMC Services Agreement, form the basis for the RWP Work Plan and Operating <br />Budget. <br />• New National Pollutant Discharge Elimination System (NPDES) discharge permit <br />requirements will be addressed operationally and in planning/development of CIP projects, <br />and all permit conditions are intended to be met. <br />• New environmental challenges (e.g. Clean Water Act regulations) will be monitored and <br />responded to. <br />• The addition of new staff will lead to increased expenditures in some materials and services <br />categories. Where possible, ongoing expenses are held flat or reduced to offset unavoidable <br />increases in some budget categories. <br />• For budget purposes, utility costs at the RWP facilities are assumed to increase by 6%. <br />Actual cost increases will be a function of weather and potential additional increases in <br />Eugene Water and Electric Board's wholesale power costs. Supplemental budget actions in <br />FY 04-OS may be needed to fully fund actual utility expenses. <br />• Proposed annual cost of living wage adjustments include a 1 % increase in base salaries for <br />Eugene, and a 2.5% increase in base salaries for Springfield. <br />• Property and liability insurance costs are expected to increase up to 20% over FY 03-04 <br />amended budget levels, due to inflation and the addition of new MWMC capital assets. <br />Page 2 FY 04-OS BUDGET AND CIP <br />