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Metropolitan Wastewater Management Commission Reserves
<br />,;
<br />RATE STABILITY RESERVE
<br />The Rate Stability Reserve was established to implement the Commission's objective to maintain
<br />stable rates. It is intended to hold revenues in excess of current year's operating and capital
<br />requirements. Due to revenue shortfalls experienced in FY 01-02, and projected revenues in FY
<br />02-03, this reserve will remain unfunded at year-end FY 02-03.
<br />Adopted Amended Proposed
<br />Budget Budget Budget
<br />FY 01-02 FY 01-02 FY 02-03
<br />RATE STABILITY RESERVE
<br />Beginning Balance $0 $0 $0
<br />" ~ Xfr From Operating Reserve 443,000 99,067 0
<br />Xfr to Operating Reserve 0 0 0
<br />Ending Balance $443,000 $99,067 $0
<br />OPERATING RESERVE
<br />The Operating Reserve is used to account for the accumulated operating revenues net of
<br />operations expenditures. The Commission has adopted a policy of maintaining a minimum
<br />Operating Reserve balance approximately equal to 10% of the adopted operating budget.
<br />For FY 02-03, the proposed operating reserve budget includes components for operations, ,
<br />.maintenance, administration and equipment replacement reserve contributions, as well as an
<br />amount dedicated to continue funding the Capital and Equipment Replacement Reserves. The
<br />amount of the Operating Reserve on June 30, 2003 is proposed at $991,432 which approximates
<br />the 10% operating reserve target. Additional budget detail for the Operating Reserve is provided
<br />below.
<br /> Adopted Amended Proposed
<br /> Budget Budget Budget
<br /> FY 01-02 FY 01-02 FY 02-03
<br />OPERATING RESERVE ~ ~ --
<br />Beginning Balance $1,461,787 $1,110,788 51,427,327
<br />User Revenue 12,131,079 12,131,079 11,200,000
<br />Other Revenue 332,550 332,550 ~ 282,960
<br />Interest 55,000 55,000 43,400
<br />Expenditures (9,971,526) (9,970,424) (9,618,674)
<br />Xferto Reserves (3,090,500) (2,746,567) (2,343,581)
<br />Ending Balance $918,390 $912,426 $991,432
<br />Page 35 FY 02-03 BUDGET
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