Enclosed are the FY 06-07 operating and capital project budgets for the Wastewater Enterprise as recommended by the Mayor and approved by the Board of Supervisors.

The projected revenues to support the operating budget and capital projects total $228.0 million: $187.4 million from sewer service charges; $38.6 million from the sale of bonds and $2.0 million from interest income and other miscellaneous income.

The operating budget totals $188.8 million; an increase of $44.1 million over last year's budget of $144.7 million. The net change primarily includes $33.0 million for debt service; $4.6 million for salary standardization; $2.5 million for services of other City Departments, and $4.0 million to support new programs such as a comprehensive regulatory compliance plan, reduction for the maintenance backlog, reduction of cycle time for sewer inspections, and implementation of fats, oils and grease (FOG) Biofuel program. Twenty-two (22) new positions were added to support the new programs.

Wastewater's capital budget totals $55.4 million: $16.8 million for the Repair and Replacement Program and $38.6 million for infrastructure repairs and replacement.