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Metropolitan Wastewater Management Commission Budget Message <br /> ~ <br /> ongoing administration and operations are for non-discretionary costs such as fees, utilities and <br /> i employee benefits, as well as one-time contractual expenses. The adopted FY OS-06 RWP ` <br /> Operating Budget maintains the Commission's Financial Plan and capital financing strategies, <br /> ~ including funding all reserves at the Commission's and the MWMC Financial Advisor's stated <br /> targets. <br /> ~ ~ <br /> The combined RWP FY OS-06 Operating Budget includes increases of 14% in Personnel <br /> Services, 6% in Materials and Services, and 47% in contributions to reserves over the originally ' <br /> adopted FY 04-OS budget. The FY OS-06 RWP Operating Budget also includes a new Debt <br /> Service budget of $762,500. The significant increase in reserves and debt service requirements <br /> relate to meeting CIP financing requirements. The revenues required to fund the FY OS-06 <br /> Operating Budget will necessitate a 6% user rate increase which is consistent with the <br /> Commission's three year rate strategy. This new rate will result in an average residential billing <br /> of $11.96 per month, based on a typical residential water consumption of 5,000 gallons, which is ' <br /> ~ about a $.68 increase. <br /> Budget Highlights <br /> • FY OS-06 staffing allocations to the RWP have increased modestly, in order to accommodate <br /> the expanded workload associated with the operation of the Biosolids Management Facility <br /> and Biocycle Farm, and to address shifting priorities and funding allocations. The total FTE <br /> for the RWP in FY OS-06 is budgeted at 86.85 as compared to 84.41 in FY 04-05. This <br /> includes a 0.3 FTE increase ~in Springfield FTE associated with distribution of staff time <br /> between regional and local programs, and a minor reorganization of RWP and Pretreatment <br /> Program functions. This also includes an increase of 2.14 FTE in Eugene staffing to support <br /> <br /> ' increased workload at the Biosolids Management Facility and to allocate staff time properly <br /> between regional and local programs. <br /> 0 <br /> • Including changes in staffing, RWP Personnel Services costs will increase by about 14 /o <br /> overall which reflects the combined effects of a projected 2.0-2.9% cost of living adjustment <br /> for Eugene, and a 2.6% cost of living adjustment for Springfield. The remainder of the <br /> increase is due primarily to higher rates for health insurance and PER5 cost increases. <br /> • The FY OS-06 Materials and Services budget will increase 6%, reflecting staff's efforts to <br /> maintain the overall RWP budget as flat as possible, while accommodating unavoidable <br /> increases in areas such as utilities and chemicals, and one-time contractual services expenses. <br /> Budget Assumptions <br /> The following assumptions and/or projections form the basis of the FY OS-06 RWP Operating <br /> Budget: <br /> L' <br /> • The MWMC Key Outcomes and corresponding performance measures for FY OS-06, along <br /> with the MWMC Services Agreement; and the capital financing requirements of the MWMC i <br /> Facilities Plan, form the basis for fhe RWP Work Plan and Operating Budget. <br /> Page 2 FY OS-06 BUDGET AND CIP <br /> ~i <br /> <br />