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Metropolitan Wastewater Management Commission Budget Message <br />BUDGET MESSAGE <br />METROPOLITAN WASTEWATER MANAGEMENT COMMISSION MEMBERS: <br />Introduction <br />Consistent with the Intergovernmental Agreement, I am presenting a proposed budget for FY 03- <br />04 that funds operations, administrative services, and capital projects planned for the Regional <br />Wastewater Program (RWP). The Metropolitan Wastewater Management Commission <br />(MWMC) administration and capital improvement program components of the budget are <br />reflected in the regionally funded portions of the City of Springfield's Environmental Services <br />Division, Public Works Administration and Finance Department budgets. The operations, <br />maintenance, equipment replacement, and major rehabilitation components are reflected in the <br />regionally funded portions of the City of Eugene's Wastewater, Engineering and Maintenance <br />Divisions' budgets. The Cities' Industrial Pretreatment Programs, managed in compliance with <br />the MWMC Model Ordinance, also are included in the RWP budget. <br />The Capital Improvement Program (CIl') portion of the budget for FY 03-04 includes funding <br />for several ongoing capital projects, including: Design and construction of the Biocycle Farm <br />and associated reclaimed water distribution infrastructure, completion of the Predesign Study and <br />Facility Master Plan update for the Water Pollution Control Facility (WPCF), and continued <br />implementation of the Wet Weather Flow Management Plan. Funds for each of these projects <br />that were budgeted in FY 02-03 are being carried forward into FY 03-04 to support actual project <br />schedules. New capital projects in the FY 03-04 budget include installation of a new biosolids <br />.lagoon dredge movement system and an electronic archival storage system for MWMC project <br />!_ records and drawings. Other Capital Programs, including Major Rehabilitation and Equipment <br />Replacement, also are fully funded in the proposed FY 03-04 budget. <br />The proposed FY 03-04 RWP Operating Budget includes actions taken to mitigate the <br />cumulative impacts of two successive years of revenue shortfalls that occurred because of <br />declining economic conditions in the community and ramped up water conservation activities. <br />First, RWP managers prepared "flat" budgets that absorb unavoidable cost increases where <br />possible. Most of the proposed budget increases are for non-discretionary costs such as fees, <br />utilities and employee benefits. Budget reductions in some areas have been incorporated where <br />possible~to partially offset increases in other areas. The proposed FY 03-04 RWP Operating <br />Budget also includes aone-time reduction in user fee funding of the Capital Reserves. After <br />significant review and deliberation of the 2003 MWMC Financial Plan and the 2003-2004 <br />MWMC Rate Study, the Commission directed staff to take this one-time action to moderate the <br />user rate impact. <br />` ' Together; these actions result in a 4% reduction in the FY 03-04 Operation Budget as compared <br />,- -, to the originally adopted FY 02-03 Operating Budget. The revenues required to fund the FY 03- <br />j 'i 04 Operating Budget will necessitate a 6.5% user rate increase. This new rate will result in an <br />`" ' average residential billing of $9.09 per month, based on a typical residential water consumption <br />~ of 5,000 gallons. <br />i <br />~, <br />,- Page 1 FY 03-04 BUDGET <br />E ~+, <br />