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Metropolitan Wastewater Management Commission Reserves
<br />EQUIPMENT REPLACEMENT RESERVES
<br />The Equipment Replacement Reserve incorporates replacement funding for three types of
<br />equipment: 1) major/stationary. equipment items costing less than $200,000 with useful lives of
<br />20 years or less; 2) fleet vehicles maintained by-the Eugene Wastewater Division; and 3)
<br />computers at the Water Pollution Control Facility. Contributions to Equipment Replacement
<br />Reserves in the proposed FY 02-03 budget total $473,910. Proposed expenditures from
<br />EquipmentReplacement Reserves in FY 02-03 total $609,299. Additional budget detail is
<br />provided below.
<br /> Adopted Amended Proposed
<br /> Budget Budget Budget
<br /> FY .O 1-02 FY O 1-02 FY ~02-03
<br />EQUIPMENT REPLACEMENT RESERVE
<br />Beginning Balance $8,156,925 $8,181,741 $8,948,590
<br />Annual Equipment Contribution 547,000 547,000 310,290
<br />Annual Vehicle Contribution 106,000 106,000 133,620
<br />Annual Computer Contribution 23,500 23,500 30;000
<br />Interest 438,000 438,000 226,513
<br />Equipment Purchases (880,072) (880,072) (609,299)
<br />Ending Balance $8,391,353 $8,416,169 $9,039,714
<br />SYSTEM DEVELOPMENT CHARGE (SDC) RESERVE
<br />SDC's (formerly described as "equalization charges") are required as part of the MWMC
<br />Intergovernmental Agreement. They are connection fees charged to new users to recover costs
<br />associated with construction of plant capacity, and are limited to funding Capital Programs. The
<br />purpose of the SDC Reserve is to collect and account for SDC revenues separately from other
<br />revenue sources, in accordance with statutory requirements. Since 1997, the Commission has
<br />maintained an SDC structure that is a combination of"Reimbursement" and "Improvement" fee
<br />components. Estimated SDC revenues for FY 02-03 total $540,000. Capital costs to be paid
<br />with SDC's were budgeted at $2,920,310 for FY 01-02; and are proposed at $1,788,000 for FY
<br />02-03. The projected total SDC Reserve balance on June 30, 2003 is $4,062,603. Additional
<br />budget detail is provided below.
<br /> Adopted Amended Proposed
<br />SDC RESERVES - ~ Budget Budget Budget --
<br /> FY 01-02 FY 01-02 FY 02-03
<br />IMPROVEMENT SDC's
<br />Beginning Balance $224,972 $224,972 $288,792 '!
<br />SDC's Collected 56,820 56,820 51,138
<br />Interest 7,000 7,000 5,563
<br />Funding For Capital (7;000) (7,000) (37,000) I, ';
<br />Ending Balance $281,792 $281,792 $308,493
<br />REIMBURSEMENT SDC's
<br />Beginning Balance $3,812,903 $4,233,906 $4,963,068
<br />SDC's Collected 543,180 543,180 488,862
<br />Interest 188,000 188,000 53,180 y:
<br />Transfer To CSD 0 0 0
<br />Funding For Capital (2,649,700) (2,913,310) (1,751,000)
<br />Ending Balance $1,894,383 $2,051,776 $3,754,110
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<br /> Page 34 FY 02-03 BUDGET , --
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