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 <br /> <br /> Page 34 FY 02-03 BUDGET , -- <br />