New Search
Metropolitan Wastewater Management Commission Reserves <br />~' .REGIONAL WASTEWATER PROGRAM <br />RESERVES <br />The Regional Wastewater.Program maintains reserve funds for dedicated purposes. Generally, <br />reserves provide for a buffer against substantial fluctuations in revenues and expenditures, <br />resulting in the ability.to maintain stable rates while fully funding operating and capital needs. <br />The Commission has established a financial policy to maintain operating reserves at <br />approximately 10% of the operating budget. Capital reserves provide for legal accounting of <br />various funding sources and the ability to cover major one-time expenditures and maintain stable <br />rates. The FY 02-03 budget includes both contributions to and expenditures from the dedicated <br />Capital and Equipment Replacement Reserves. Further detail on the proposed FY 02-03 reserves <br />is provided below. <br />WORKING CAPITAL RESERVES <br />The Working Capital Reserves provide funds for Springfield Administration and Eugene <br />Operations costs paid prior to the receipt of user fees from Springfield Utility Board and Eugene <br />Water and Electric Board. These reserves act as revolving accounts which are drawn down and <br />replenished on a monthly basis. Eugene's Working Capital Reserve is $500,000, and <br />Springfield's Working Capital Reserve is $200,000. <br />CAPITAL RESERVES <br />The Capital Reserves accumulate funds to cover CII' and Major Rehabilitation Program costs so <br />that rate impacts can be minunized. These capital programs are tracked separately because the <br />CIP is administered by Springfield and the Major Rehabilitation Program is administered by <br />Eugene. The FY 02-03 proposed budget includes a contribution from the Operating Reserve of <br />$1;869,671 to maintain this reserve and to cover costs related to the five-year CIP and Major <br />Rehabili <br />tation Programs. Interest earnin s estimated at $134 746 will be credited to this account <br />g , <br />'; and the ending balance on June 30, 2003 is proposed at $5,490,756. Additional budget detail on <br />j:' _' the CIP and Major Rehabilitation Program reserves is provided below. <br />Adopted Amended Proposed <br />Budget Budget Budget <br />FY 01-02 FY 01-02 FY 02-03 <br />_. <br />CIP. RESERVE _ <br />.-; Beginning Balance $6,825,811 $6,974,888 $7,390,773 <br />', Xfr From Operating Reserve 1,971,000 1,971,000 1,869,671 <br />` Xfr From CSD 0 0 0 <br />Interest 178,000 178,000 134,746 <br />Funding For Major Rehab (456,000) (586,000) (495,338) <br />Funding For CIP (3,527,032) (4,175,440) (3,409,096) <br />Ending Balance $4,991,779 $4,362,448 $5,490,756 <br />Page 33 FY 02-03 BUDGET <br />