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Metropolitan Wastewater Management Commission Reserves
<br /> ' REGIONAL WASTEWATER PROGRAM
<br /> RESERVES
<br /> The Regional Wastewater Program maintains reserve funds for dedicated purposes. Generally,
<br /> reserves provide for a buffer against substantial fluctuations in revenues and expenditures, resulting
<br /> in the ability to maintain stable rates while fully funding operating and capital needs. The
<br /> Commission has established a financial policy to maintain operating reserves at a minimum of 10%
<br /> of the o eratin bud et. Ca ital reserves rovide for le al accoun
<br /> p g tm of various
<br /> g fundin
<br /> p p sources and
<br /> g
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<br />
<br /> ' ; the ability to cover mayor one-time expenditures and maintain stable rates. The FY 00-01 budget
<br /> ' ` includes both contributions to and expenditures from the dedicated Capital and Equipment
<br /> Replacement Reserves. Further detail on the proposed FY 00-01 reserves is provided below.
<br /> WORKING CAPITAL RESERVES
<br /> The Working Capital Reserves provide funds for Springfield Administration and Eugene Operations .
<br /> costs paid prior to the receipt of user fees from SUB and EWEB. These reserves act as revolving
<br /> accounts which are drawn down and replenished on a monthly basis. Eugene's Working Capital. is
<br /> ` $500,000, and Springfield's Working Capital is $200,000.
<br /> CAPITAL RESERVES
<br /> The Capital Reserves accumulate funds to cover CIP and Major Rehabilitation Program costs so that
<br /> rate impacts can be minimized. These capital programs are tracked separately because the CIP is
<br /> administered by Springfield and the Major Rehabilitation Program is administered b Eu ene: On
<br /> Y g
<br /> - June 30, 2000, the balance of the combined Capital Reserve is projected to be $6,342,514. For FY
<br /> 00-01, the proposed budget includes contributions from the Operating Reserve of $2,949,659
<br /> maintain this reserve to cover costs related to the five-year CIP and Major. Rehabilitation Programs.
<br /> Interest earnin s estimated at
<br /> $350 900 will be credited
<br /> g to this. account and the ending balance on
<br /> ..June 30, 2001 is proposed at $4,959,573. Additional budget detail on the CIP and Major
<br /> ~ ~ Rehabilitation Program reserves is provided below.
<br /> ._i
<br /> Adopted Amended Proposed
<br /> Budget Budget Budget
<br /> FY 99-00 FY 99-00 FY 00-01
<br /> CIP RESERVE
<br /> Beginning Balance 384,703 9,307,702 6,315,312
<br /> j Xfr From Operating Reserve 4,198,070 2,550,664 2,449,660
<br /> ` Xfr From CSD 0 2,759,345 0
<br /> Xfer to Fund 12 0 (113,400) A
<br /> Funding For CIP (1,450,000) (10,533,430) (4,160,000)
<br /> Interest 50,000 50,000 350,000
<br /> Ending Balance 3,182,773 4,020,881 4,954,972
<br /> MAJOR REHAB RESERVE
<br /> Beginning Balance 287,597 325,864 27,202
<br /> Xfr From Operating Reserve 142,000 142,000 499,999
<br /> Fund Major Rehab (449,000) (455,662) (523,500)
<br /> Interest 20,000 20,000 900
<br /> Ending Balance 597 32,202 4,601
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<br /> Page 30 FY 00-01 BUDGET
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