FY 2005-06 MWMC Budget & CIP - Laserfiche WebLink

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Metropolitan Wastewater Management Commission Reserves i REGIONAL WASTEWATER PROGRAM RESERVES The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a buffer against substantial fluctuations in revenues and expenditures, resulting in the ability to maintain stable rates while fully funding operating and capital needs. Further details on the FY OS-06 reserves are provided below. WORKING CAPITAL RESERVE The Working Capital Reserve acts as a revolving account that is drawn down and replenished on a monthly basis to provide funds for payment of Springfield Administration and Eugene Operations costs prior to the receipt of user fees from the Springfield Utility Board and Eugene Water and Electric Board. The Administration Working Capital Reserve is $200,000, and the Operations Working Capital Reserve is $500,000. OPERATING RESERVE The Operating Reserve is used to account for accumulated operating revenues net of operating expenditures. The Commission has adopted a policy ofbudgeting an Operating Reserve balance approximately equal to 10% of the adopted operating budget. The Operating Reserve For FY OS-06 is budgeted at 10% of the total of Personal Services, Materials and Services, and Capital Outlay in accordance with Commission policy. Additional budget detail for the Operating Reserve is provided below. ADOPTED AMENDED ADOPTED OPERATING RESERVE BUDGET BUDGET BUDGET FY 04-05 FY 04-OS FY OS-06 Beginning Balance $1,617,216 $1,053,472 $2,722,618 User Revenue 14,973,000 14,973,000 15,700,000 Se to a Revenue .343 000 343,000 450,000 p g 45 4 4 46 809 enue 45 4 4 6 9 Other Rev 6 9 Interest 69,000. 69,000 64,900 Transfer From Capital Reserve 0 0 3,150,000 Expenditures (11,616,707)- (11,918,840) (12;664,568) Debt Service 0 0 (762,500) Transfer to Reserves (4,684,793) (4,679,273) (7;486,440) Ending Balance $1,157,210 $296,853 $1,220,819 Page 38 FY OS-06 BUDGET AND CIP _