Metropolitan Wastewater Management Commission Reserves <br />EQUIPMENT REPLACEMENT RESERVE <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 the Equipment Replacement <br />Reserve in the proposed FY 03-04 budget total $481,098. Proposed expenditures from the <br />Equipment Replacement Reserve in FY 03-04 total $1,026,630. Additional budget detail is <br />provided below. <br /> Adopted Amended Adopted <br /> Budget Budget Budget <br /> FY 02-03 FY 02-03 FY 03-04 <br />EQUIl'MENT REPLACEMENT RESERVE <br />Beginning Balance $8,948,590 $9,015,480 $8,876,727 <br />Annual Equipment Contribution 310,290 310,290 325,805 <br />Annual Vehicle Contribution 133,620 133,620 136,693 <br />Annual Computer Contribution 30,000 30,000 18,600 <br />Interest 226,513 226,513 158,302 <br />Equipment Purchases (609,299) (755,663) (1,026,630) <br />Ending Balance $9,039,714 $8,960,240 $8,489,497 <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 03-04 total $850,000. Capital costs to be paid <br />with SDC's were budgeted at $1,936,646 for FY 02-03, and are proposed at $2,125,000 for FY <br />03-04. The projected total SDC Reserve balance on June 30, 2004 is $4,077,070. Additional <br />budget detail is provided below. <br /> Adopted Amended Adopted <br />SDC RESERVE Budget Budget Budget <br /> FY 02-03 FY 02-03 FY 03-04 <br />IMPROVEMENT SDC's <br />Beginning Balance $323,862 $343,563 $363,264 <br />SDC's Collected 51,138 51,138 80,495 <br />Interest 5,563 5,563 7,383 <br />Funding For Capital (37,000) (37,000) 0 <br />Ending Balance $343,563 $363,264 $451,142 <br />REIlVIBURSEMENT SDC's <br />Beginning Balance $4,927,998 $5,290,199 $4,934,401 <br />SDC's Collected 488,862 488,862 769,505 <br />.Interest 53,180 53,180 47,022 <br />Transfer To CSD 0 0 0 <br />Funding For Capital (1,751,000) (1,899,646) (2,125,000) <br />Ending Balance $3,719,040 $3,932,595 $3,625,928 <br />Page 31 FY 03-04 BUDGET <br />