Metropolitan St.

Louis
Sewer District
Rate Proposal Overview

MSD

First sewers built in the 1850s in

response to the 1849 cholera
outbreak
Prior to 1954, the area was
covered by 79 separate sewer
systems
MSD is a public/government
agency, created in 1954
MSD annexed the area of St. Louis
County west of I-270 at voters
request and began to provide
wastewater service in 1977
MSD began to provide
stormwater service to this area in
1989

Rate Commission

Established in 2000 to provide

public input into how MSD sets its
rates
15 organizations representing a
broad cross-section of the
community MSD serves
Reviews all proposed rate
changes under charter-defined
parameters, and renders a
recommendation to the Board
of Trustees
The 2015 Rate Commission will
consider a proposal for MSD
rates for fiscal years 2017-2020
(July 1, 2016-June 30, 2020)

Two Utilities
Wastewater Service

Stormwater Service

Collecting and treating the

"used" water from sinks,
toilets and floor drains
Travels through miles of
pipes to one of seven
treatment plants
Treated to high standards
before being returned to
our regions waterways.
Wastewater service is
currently funded by rates
based upon water usage
and account type

Collecting the rain and

other water drainage that
is not naturally absorbed in
the soil on your property
Addressing regulatory
requirements regarding
impacts of stormwater
runoff on receiving stream
water quality
Stormwater service is
currently funded by a flat
fee and small property
taxes, based upon
geographic location
3

Rate Change Proposal

Four year rate plan, FY17-FY20
Wastewater rate change
Wastewater: current
Wastewater: proposed

Stormwater revenue change

Stormwater: current
Stormwater: proposed
4

Current Rates, Progress under FY13-16 rate cycle

CURRENT
WASTEWATER RATES
5

WASTEWATER: current

2013-2016 Rate Proposal Status

Capital Improvement & Replacement Program:

Schedule and cost of needed repairs and

improvements
Maintain the system and ensure compliance with all
State and Federal Regulatory requirements
$971,015,0001 identified in FY13-16 Rate Proposal

On time and under budget:

Plan to appropriate $889,632,0001 (95%) of amount

identified in FY13-16 Rate Proposal
80% of projects appropriated within 2 months of
planned date through FY15
1

Appendix 7.7.1

WASTEWATER: current

2013-2016 Rate Proposal Status

Operations & Maintenance

$716 M included in Rate Proposal1

$700 M appropriated [projected]1

Wastewater Operations Accomplishments

Brought CCTV program in-house

61,737 manholes inspected
6,651 manholes rehabilitated
1,910 miles of sewer line inspected
66% (2/3) reduction in basement backups since
cleaning program began
1

Appendix 7.7.1

Proposed Rate Changes

PROPOSED
WASTEWATER RATES
8

WASTEWATER: proposed

Wastewater Rate Change

Drivers
MSD Project Clear: Regulatory
Requirements
Get the Rain Out
Repair & Maintain
Build System Improvements
Financial Stability and Responsibility
Maintain AA Bond Rating

WASTEWATER: proposed

Wastewater Rate Proposal

Key Financial Components
$1.5B Capital Program1
Wastewater Capital Improvement &
Replacement Program

$736M Operations & Maintenance

Cost2
$477M Total Debt Service Cost3
1
2
3

Table 4-7
Table 4-6
Table 4-9

10

WASTEWATER: proposed

Proposed Wastewater
Capital Improvement &
Replacement Program1
Fiscal Year
2017
2018
2019
2020
Total 4 Year Program
1Planning,

projects.

Program Level2
$332,511,688
$347,297,471
$373,664,090
$439,398,796
$1,492,872,045

engineering, and construction of wastewater

2

Table 4-7

11

WASTEWATER: proposed

Additional Use of Debt

Fund next four years through a combination of

cash and bonds
Total Cash Financing: $415M1
Total Bond Financing: $1.11B1
Assumes $900 M additional bond authorization
Total debt authorized $2.6202 Billion
100% of debt is used to fund the Capital
Improvement & Replacement Program

1
2

Table 4-8
12
Total Bonds FY2004-2020

WASTEWATER: proposed

Proposed FY17-20
Wastewater Projects

598

Wastewater Planning,
Design, &
Construction Projects

226

Wastewater
Construction Projects

39

Sanitary Sewer
Overflows (SSOs)
removed1

24

Miles of Storage &

Conveyance Tunnels
designed

1One

CSO will be removed during this rate cycle, in addition to the design
and planning for future removals. The Green Infrastructure (Rainscaping)
program is also designed to alleviate CSOs to the Mississippi.

13

WASTEWATER: proposed

Proposed FY17-20
Wastewater
Projects

Appendix 7.2.2

14

WASTEWATER: proposed

Stable Wastewater Operating

Costs
FY15
FY16
FY17
FY18
FY19
FY20

[projected]
[projected]

Total
$169 M
$178 M
$176 M
$180 M
$186 M
$193 M

% Change
N/A
5.4 %
-1.2 %
2.1 %
3.5 %
3.6 %

Table 4-6

15

WASTEWATER: proposed

Proposed Wastewater
Operations & Maintenance

60,000

Manholes Inspected1

6,000
Manhole
Rehabilitations

12%

per year, once per 50 year schedule

Meets Consent Decree requirements for
inspection, cleaning, and rehabilitation

1,600

Miles of sewer
inspected with CCTV

3,814

Miles of sewer cleaned

360

Miles of sewer
rehabilitation

16

WASTEWATER: proposed

Proposed Wastewater Rate Increase

Average Residential Monthly Bill1
[with bond financing]

Fiscal Year

Monthly Bill

$ Change

% Change

FY162

$ 40.72

$ 4.73

13.1 %

FY17

$ 44.72

$ 4.00

9.8 %

FY18

$ 49.56

$ 4.84

10.8 %

FY19

$ 54.91

$ 5.35

10.8 %

FY20

$ 60.86

$ 5.95

10.8 %

1based
2already

on 7 Ccfs per month

approved in 2012 as part of FY13-16 Rate Commission Process

1Table

ES-4

17

WASTEWATER: proposed

Wastewater Funding Options

Voters Approve Bonds
Option A
Funded by Cash & Debt

$900 M additional bonds

$1.5 Billion 4-Year
Wastewater Capital Projects
Avg. Single Family
Wastewater Sewer Bill1
$$$
% Chg.
FY16
$40.72
13.1%
FY17
$44.72
9.8%
FY18
$49.56
10.8%
FY19
$54.91
10.8%
FY20
$60.86
10.8%
Table ES-4
7 Ccfs/month
1

Voters Reject Bonds

Option B
Funded by Cash

Zero use of additional bonds

$1.5 Billion 4-Year
Wastewater Capital Projects
Avg. Single Family
Wastewater Sewer Bill2
$$$
% Chg.
FY16
$40.72
13.1%
FY17
$44.72
9.8%
FY18
$73.80
65.0%
FY19
$83.46
13.1%
FY20
$96.01
15.0%
Table 4-25
7 Ccfs/month

18

Stormwater service, funding, and geographic disparities

CURRENT STORMWATER
SERVICE
19

STORMWATER: current

Current Stormwater
Service & Funding Overview
MSD assumed stormwater management generally inside of
I-270 in 1954, and took over the stormwater management
for the remainder of our service area in St. Louis County in
1989
Stormwater service has differed dramatically among parts
of the service area due to differences in funding for
stormwater system maintenance and system improvement
Stormwater is currently funded through a combined fee and
tax system
Three zones of stormwater funding overlap in MSDs service
area

20

STORMWATER: current

Stormwater Fee and

Administrative Tax

2014 Stormwater Fee total:

$1,338,000 ($0.24/$0.18)
$2.88 or $2.16 per year
for all residential
customers
2014 Total Tax Levy:
$5,047,624
($0.0197/$100)
Service Level:

21

STORMWATER: current

Stormwater Tax
2014 Total Tax Levy:
$10,211,630
($0.0682/$100)
Service Level:

PLUS:

22

STORMWATER: current

Taxing Sub-districts

Total 2014 Tax Levy:

$8,840,941
(Up to $0.10/$100 )

Service Level:

PLUS

23

STORMWATER: current

Current Stormwater
Services & Funding

$0.241 fee + $0.0197 + $0.0682 + up to $0.10

$0.241 fee + $0.0197 + $0.0682

$0.241 fee + $0.0197

24
1for

customers also receiving wastewater sewer service

STORMWATER: current

Average Cost per Customer

$0.241 fee + $0.0197 + $0.0682 + up to $0.10

$0.241 fee + $0.0197 + $0.0682

$0.241 fee + $0.0197

1for
2for

customers also receiving wastewater sewer service

a single-family home appraised value of $142,100, at

19% Residential assessment rate

25

STORMWATER: current

Stormwater Regulatory
Compliance Activities
MSD ensures compliance with all
local, state, and federal
stormwater regulations, including:
Plan Review and Permitting
Complaint Investigation and Data
Collection
Emergency Response in critical
health and safety situations
26

STORMWATER: current

Creeks and BMPs/Basins

in Red Area

1154 Miles of
Creeks in Red
Area
2638
BMPs/Basins in
Red Area
Currently funded

27

STORMWATER: current

Public Storm System

in Red Area

1362.99 Miles of
Storm Sewers in
the Red Area

Currently not
funded

28

Proposed Revenue Changes

STORMWATER SERVICE
29

STORMWATER: proposed

Stormwater Revenue
Proposal
Key Financial Components
4-year Operations & Maintenance
cost of $90.8M1
6-year $97.6M Capital program2

1
2

Table 5-2, FY17-20

Table 5-5, FY15-20

30

STORMWATER: proposed

Stormwater Revenue Change

Drivers
Necessary maintenance of public
storm sewer system
Initiate limited funding for
necessary 6-year District-wide
stormwater capital improvements

31

STORMWATER: proposed

Proposed Stormwater
Operating Costs
FY16
FY17
FY18
FY19
FY20

[projected]

Total
$16.0
$20.7
$23.7
$22.8
$23.5

M
M
M
M
M

% Change
6.3%
30.0%
14.5%
-3.9%
3.1%

Table 5-2

32

STORMWATER: proposed

Proposed FY17-20
Stormwater Projects

Green Area:

Yellow Area:

Projects: 64
Cost: $24,968,200
Projects: 47
Cost: $17,450,000

Red Area:

Projects: 59
Cost: $7,485,000

Appendix 7.5.2

33

STORMWATER: proposed

Proposed Stormwater
Revenue Structure

Type of Charge

Current

Proposed

OMCI Sub-district Taxes

(Green area per $100 Assessed Value)

$0.05-0.10

$0

Stormwater O&M Tax

(Yellow area per $100 Assessed Value)

$0.0682

$0

District-wide Regulatory Tax

(Red area per $100 Assessed Value)

$0.0197

$0.0197

District-wide Stormwater Tax (proposed)

(Red area per $100 Assessed Value)

N/A

$0.100

$0.01970.1879

$0.1197

Fixed Monthly Charge Single-Family Residential

($/unit)

$.24

$0

Fixed Monthly Charge Multi-Family Residential

($/unit)

$.18

$0

$.18-.24

$0

Total Tax

Total Fees

Table 5-1

34

STORMWATER: proposed

Proposed Revenue Change

Green Area

Current

Tax Rate

Avg. Annual
Cost1

$.0197 +
$.0682 +
$.10 (up to)

$61.67/year

Proposed $.10

-$19.75/year

Total

$41.92/year

$.1197

Change in total tax: -0.5%

1per

$100 of assessed valuation, based upon average

appraisal in green area of $184,500

Table ES-6

35

STORMWATER: proposed

Proposed Revenue Change

Yellow Area
Tax Rate

Avg.
Annual
Cost1

Current

$.0197 +
$.0682

$12.50/year

Proposed

$.10

+$3.60/year

Total

$.1197

$16.10/year

Change in total tax: 0.3%

1per

$100 of assessed valuation, based upon average

appraisal in yellow area of $70,800

Table ES-6

36

STORMWATER: proposed

Proposed Revenue ChangeRed Area

Tax Rate

Avg.
Annual
Cost1

Current

$0.0197

$10.52/ye
ar

Proposed

$0.10

+$50.08/
year

Total

$.1197

$60.60/ye
ar

Change in total tax: 1.2%

1per

$100 of assessed valuation, based upon average

appraisal in red area of $266,700

Table ES-6

37

Annualized impact of Wastewater and Stormwater revenue

changes

TOTAL CUSTOMER COST

WASTEWATER + STORMWATER
38

WASTEWATER + STORMWATER: proposed

Total Proposed
Annual Customer Cost
Single-Family Residential

Average Annual Cost

without Bonds2

Proposed Average
Annual Cost1
Total Annual
Cost

Percent
Change

Total Annual
Cost

Percent
Change

FY16

$522.54

N/A

$522.54

N/A

FY17

$577.92

+10.6%

$577.92

+10.6%

FY18

$636.00

+10.0%

$926.88

+60.4%

FY19

$700.20

+10.0%

$1,042.80

+12.5%

FY20

$771.60

+9.2%

$1,193.40

+14.4%

1Table

ES-4, Table ES-6

2 Table 4-25, Table ES-6

39

WASTEWATER + STORMWATER: proposed

Total Proposed
Annual Customer Cost
Low-Income Residential

Proposed Average
Annual Cost1
Total Annual
Cost

Percent
Change

Average Annual Cost

without Bonds2
Total Annual
Cost

Percent
Change

FY16

$261.83

N/A

$261.83

N/A

FY17

$283.77

+8.4%

$283.77

+8.4%

FY18

$312.81

+10.2%

$458.25

+61.5%

FY19

$344.97

+10.3%

$516.21

+12.6%

FY20

$380.61

+10.3%

$591.57

+14.6%

1Table

ES-4, Table ES-6

2 Table 4-25, Table ES-6

40

WASTEWATER + STORMWATER

Anticipated Revenue Change

Process
Proposal submitted to MSD Rate Commission February 26, 2015
Final wastewater rate increase of April 2012 rate plan
implemented July 1, 2015
Rate Commission Recommendation due to Board by August 2015
MSD Board Approves Revenue Plan October-December 2015
Tentative Bond Authorization and Stormwater Elections
Calendar 2016
MSD Board Adopts Revenue plan after elections

41

WASTEWATER + STORMWATER

Rate Commission
Formal Comments
To submit formal comments to the
Rate Commission for consideration in
their process, please address to:

Email: jfenton@stlmsd.com
Mail: 2350 Market Street, St. Louis MO 63103

Attn: Annette Slack, Secretary to Rate Commission

Intervener Application

Available at www.stlmsd.com/RateCommission
Deadline: March 20
42