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Metropolitan Wastewater Management Commission Budget and Program Summary <br /> 6. The Working Capital Reserve acts as a revolving account which is drawn down and replenished on a <br /> <br /> :I monthly basis to fund Eugene's and Springfield's cash flow needs. <br /> 7. The Rate Stability Reserve is used to accumulate revenues available at year-end after the budgeted <br /> i Operating Reserve target is met. It is budgeted based on projected revenues and expenditures and is <br /> intended to lessen the size of needed rate increases over time. <br /> 8. The Operating Reserve is used to account for the accumulated operating revenues net of operations <br /> expenditures. The Commission has adopted a policy of maintaining a minimum Operating Reserve <br /> balance approximately equal to 10% of the adopted Operating Budget. This targeted level of funding <br /> provides for contingency funds in the event unanticipated expenses or revenue shortfalls occur during the <br /> ~ .budget year. ~ ~ <br /> 9. The Revenue Bond Reserve was established in FY OS-06 to recognize and record reserves required by <br /> revenue bond covenants. <br /> 10. The Debt Service line item is the sum of interest and principal payments on the Revenue Bonds. <br /> i <br /> i <br /> i <br /> j <br /> i <br /> ~ ; <br /> i <br /> 1''; <br /> I <br /> 1 F__ i <br /> i <br /> ~ <br /> I , <br /> r <br /> f <br /> 4 <br /> ~ ; <br /> Page 12 FY OS-06 BUDGET AND CIP <br /> <br />