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Metropolitan Wastewater Management Commission Budget Message <br />FTE also due to staff reallocations. No reductions in services or levels of service are <br />proposed. Overall, Eugene and Springfield personnel services costs will increase 6% over <br />FY 00-01. <br />• The proposed FY 01-02 materials and services budget reflects a 2% increase over the FY 00- <br />01 budget. The proposed Eugene Wastewater Division FY 01-02 materials and services <br />budget is 1% above FY 00-01. The proposed Springfield Environmental Services Division <br />materials and services budget reflects an 5% increase over FY 00-01. <br />The proposed FY 01-02 budget includes several contributions to MWMC reserves. The <br />contribution to Equipment Replacement Reserves will include $676,500 for major stationary <br />equipment, vehicles and computers. The allocation is intended to build reserves over the <br />projected life of equipment sufficient to provide full replacement funding. The allocation to the <br />Capital Reserves will be $1,971,000. This contribution is an increment of user rates that. will be <br />directly allocated to the 5-year Capital Improvements Program. The allocation to the Operating <br />Reserve, consistent with the Commission's policy, to set this amount approximately equal to <br />10% of the operating budget, is $918,380. The estimated allocation to the new Rate Stability <br />Reserve is $443,000, which will support increased operational costs and the CIl' in future years. <br />The actual amount that can be transferred to the reserve at year-end will depend on actual <br />revenue collected for the year. <br />Budget Assumptions <br />• Existing levels of service are funded. <br />• Permit requirements are met. <br />• New environmental challenges (e.g. ESA, CWA regulations), are monitored, planned for and <br />responded to. <br />• No changes in operational conditions or regulatory requirements are anticipated. <br />• Proposed annual cost of living wage adjustments include an increase of 3% for Eugene and ~ <br />3.5% (union) and 3.5% (non-union) for Springfield personnel <br />• Operational costs for start up of the dewatering facility are included ($103,850). <br />• Operational costs for start up of the poplar farm are not included. <br />• Working capital remains budgeted at $200,000 for Springfield, and $500,000 for Eugene. <br />• Capital reserve contribution will be $1,971,000 . <br />• Equipment replacement reserve contribution will be $676,500. <br />Page 2 FY O 1-02 Budget <br />