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 <br /> <br /> Page 32 FY 01-02 Budget <br />