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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
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