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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 01-02 budget total $676,500. Proposed expenditures from
<br />Equipment Replacement Reserves in FY 01-02 total $823,372. Additional budget detail is
<br />provided below.
<br />Adopted Amended Proposed
<br />Budget Budget Budget
<br />FY 00-01 FY 00-01 FY O 1-02
<br />EQUIPMENT REPLACEMENT RESERVE
<br />Beginning Balance $7,104,984 $7,276,050 $8,100,225
<br />Annual Equipment Contribution 551,608 551,608 547,000
<br />Annual Vehicte Contribution 123,300 123,300 106,000
<br />Annual Computer Contribution 0 0 .23,500
<br />Interest 450,000 450,000 438,000
<br />Equipment Purchases (422,846) (563,199) (823,372)
<br />Ending Balance $7,807,046 $7,837,759 $8,391,353
<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 01-02 total $600,000. Capital costs to be paid
<br />with SDC's were budgeted at $1,215,000 for FY 00-01, and are proposed at $2,649,700 for FY
<br />01-02. The projected total SDC Reserve balance on June 30, 2002 is $2,176,175. Additional
<br />budget detail is provided below.
<br /> Adopted Amended Proposed
<br />SDC RESERVES Budget Budget Budget
<br /> FY 00-01 FY 00-01 FY O 1-02 ~
<br />IMPROVEMENT SDC's
<br />Beginning Balance $202,688 $309,626 $363,802
<br />SDC's Collected 84,630 84,630 46,800
<br />Interest 22,308 22,308 7,000
<br />Funding For Capital 0 0 (92,500)
<br />Ending Balance $309,626 $416,564 $325,102
<br />REIMBURSEMENT SDC's i
<br />,:
<br />Beginning Balance $3,607,453 $3,310,749 $3,759,573
<br />SDC's Collected 1,000,370 1,000,370 553,200
<br />Interest 263,692 263,692 188,000
<br />Transfer To CSD 0 0 0
<br />Funding For Capital (1,215,000) (2,299,700) (2,649,700)
<br />Ending Balance $3,656,515 $2,275,111 $1,851,073
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<br /> Page 32 FY 01-02 Budget
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