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The Board of Directors approves MWRA expenditures for the upcoming fiscal year, which begins each July 1, after budget review and comment by the MWRA Advisory Board.
The Board approves two different budgets:
| • | The Current Expense Budget (CEB) includes all of the "out-of-pocket" expenses for the upcoming year. Approximately 40% of the budget is for direct costs like employee wages and benefits, chemicals, electricity, diesel fuel, payments to operate the sludge pellet plant, and other day-to-day expenses. The remaining 60% supports MWRA’s extensive repair and new construction activities, primarily through principal and interest payments on the bonds that have been sold to finance the capital program. |
| • | The Capital Improvement Program (CIP) outlines the upcoming ten year spending plan for rehabilitation and new construction -- the pipes, pump stations, interceptors, treatment facilities, and other components of MWRA’s physical assets. The money to provide these infrastructure improvements comes largely from the sale of various types of bonds, although some federal grants and current year revenues cover a small share of these costs. |
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| WHERE THE MONEY COMES FROM | |
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Three-quarters
of the revenue necessary to support the annual CEB (and indirectly the
CIP) comes from MWRA customer communities. The balance comes from appropriations
from the Commonwealth, income from various MWRA invested funds, other
fees and charges, and prior year surpluses.
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