Metropolitan St. Louis Sewer District. Rate Proposal Overview

Transcription

1 Metropolitan St. Louis Sewer District Rate Proposal Overview

2 MSD Rate Commission First sewers built in the 850s in response to the 849 cholera outbreak Prior to 954, the area was covered by 79 separate sewer systems MSD is a public/government agency, created in 954 MSD annexed the area of St. Louis County west of I-270 at voters request and began to provide wastewater service in 977 MSD began to provide stormwater service to this area in 989 Established in 2000 to provide public input into how MSD sets its rates 5 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 205 Rate Commission will consider a proposal for MSD rates for fiscal years (July, 206-June 30, 2020) 2

3 Two Utilities Wastewater 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 region s waterways. Wastewater service is currently funded by rates based upon water usage and account type Stormwater Service 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

4 Rate Change Proposal Four year rate plan, FY7-FY20 Wastewater rate change Wastewater: current Wastewater: proposed Stormwater revenue change Stormwater: current Stormwater: proposed 4

5 Current Rates, Progress under FY3-6 rate cycle CURRENT WASTEWATER RATES 5

6 WASTEWATER: current 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 $97,05,000 identified in FY3-6 Rate Proposal On time and under budget: Plan to appropriate $889,632,000 (95%) of amount identified in FY3-6 Rate Proposal 80% of projects appropriated within 2 months of planned date through FY5 Appendix

7 WASTEWATER: current Rate Proposal Status Operations & Maintenance $76 M included in Rate Proposal $700 M appropriated [projected] Wastewater Operations Accomplishments Brought CCTV program in-house 6,737 manholes inspected 6,65 manholes rehabilitated,90 miles of sewer line inspected 66% ( 2 / 3 ) reduction in basement backups since cleaning program began Appendix

8 Proposed Rate Changes PROPOSED WASTEWATER RATES 8

9 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 9

10 WASTEWATER: proposed Wastewater Rate Proposal Key Financial Components $.5B Capital Program Wastewater Capital Improvement & Replacement Program $736M Operations & Maintenance Cost 2 $477M Total Debt Service Cost 3 Table Table Table 4-9 0

11 WASTEWATER: proposed Proposed Wastewater Capital Improvement & Replacement Program Fiscal Year Program Level $332,5, $347,297, $373,664, $439,398,796 Total 4 Year Program $,492,872,045 Planning, engineering, and construction of wastewater projects. 2 Table 4-7

12 WASTEWATER: proposed Additional Use of Debt Fund next four years through a combination of cash and bonds Total Cash Financing: $45M Total Bond Financing: $.B Assumes $900 M additional bond authorization Total debt authorized $ Billion 00% of debt is used to fund the Capital Improvement & Replacement Program Table Total Bonds FY

13 WASTEWATER: proposed Proposed FY7-20 Wastewater Projects 598 Wastewater Planning, Design, & Construction Projects 226 Wastewater Construction Projects 39 Sanitary Sewer Overflows (SSOs) removed 24 Miles of Storage & Conveyance Tunnels designed One 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. 3

14 WASTEWATER: proposed Proposed FY7-20 Wastewater Projects Appendix

15 WASTEWATER: proposed Stable Wastewater Operating Costs Total FY5 [projected] $69 M N/A % Change FY6 [projected] $78 M 5.4 % FY7 $76 M -.2 % FY8 $80 M 2. % FY9 $86 M 3.5 % FY20 $93 M 3.6 % Table 4-6 5

16 WASTEWATER: proposed Proposed Wastewater Operations & Maintenance,600 60,000 Manholes Inspected 6,000 Manhole Rehabilitations 2% per year, once per 50 year schedule Meets Consent Decree requirements for inspection, cleaning, and rehabilitation Miles of sewer inspected with CCTV 3,84 Miles of sewer cleaned 360 Miles of sewer rehabilitation 6

17 WASTEWATER: proposed Proposed Wastewater Rate Increase Average Residential Monthly Bill [with bond financing] Fiscal Year Monthly Bill $ Change % Change FY6 2 $ $ % FY7 $ $ % FY8 $ $ % FY9 $ 54.9 $ % FY20 $ $ % based on 7 Ccfs per month 2 already approved in 202 as part of FY3-6 Rate Commission Process Table ES-4 7

18 WASTEWATER: proposed Wastewater Funding Options Voters Approve Bonds Option A Funded by Cash & Debt $900 M additional bonds $.5 Billion 4-Year Wastewater Capital Projects Avg. Single Family Wastewater Sewer Bill $$$ % Chg. FY6 $ % FY7 $ % FY8 $ % FY9 $ % FY20 $ % Voters Reject Bonds Option B Funded by Cash Zero use of additional bonds $.5 Billion 4-Year Wastewater Capital Projects Avg. Single Family Wastewater Sewer Bill 2 $$$ % Chg. FY6 $ % FY7 $ % FY8 $ % FY9 $ % FY20 $ % Table ES-4 7 Ccfs/month 2 Table Ccfs/month 8

19 Stormwater service, funding, and geographic disparities CURRENT STORMWATER SERVICE 9

20 STORMWATER: current Current Stormwater Service & Funding Overview MSD assumed stormwater management generally inside of I-270 in 954, and took over the stormwater management for the remainder of our service area in St. Louis County in 989 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 MSD s service area 20

21 STORMWATER: current Stormwater Fee and Administrative Tax 204 Stormwater Fee total: $,338,000 ($0.24/$0.8) $2.88 or $2.6 per year for all residential customers 204 Total Tax Levy: $5,047,624 ($0.097/$00) Service Level: 2

22 STORMWATER: current Stormwater Tax 204 Total Tax Levy: $0,2,630 ($0.0682/$00) Service Level: PLUS: 22

23 STORMWATER: current Taxing Sub-districts Total 204 Tax Levy: $8,840,94 (Up to $0.0/$00 ) Service Level: PLUS 23

24 STORMWATER: current Current Stormwater Services & Funding $0.24 fee + $ $ up to $0.0 $0.24 fee + $ $ $0.24 fee + $ for customers also receiving wastewater sewer service

25 STORMWATER: current Average Cost per Customer $0.24 fee + $ $ up to $0.0 $0.24 fee + $ $ $0.24 fee + $0.097 for customers also receiving wastewater sewer service 2 for a single-family home appraised value of $42,00, at 9% Residential assessment rate 25

26 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

27 STORMWATER: current Creeks and BMPs/Basins 54 Miles of Creeks in Red Area 2638 BMPs/Basins in Red Area Currently funded in Red Area 27

28 STORMWATER: current Public Storm System Miles of Storm Sewers in the Red Area in Red Area Currently not funded 28

29 Proposed Revenue Changes STORMWATER SERVICE 29

30 STORMWATER: proposed Stormwater Revenue Proposal Key Financial Components 4-year Operations & Maintenance cost of $90.8M 6-year $97.6M Capital program 2 Table 5-2, FY Table 5-5, FY

31 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 3

32 STORMWATER: proposed Proposed Stormwater Operating Costs Total % Change FY6 [projected] $6.0 M 6.3% FY7 $20.7 M 30.0% FY8 $23.7 M 4.5% FY9 $22.8 M -3.9% FY20 $23.5 M 3.% Table

33 STORMWATER: proposed Green Area: Proposed FY7-20 Stormwater Projects Projects: 64 Cost: $24,968,200 Yellow Area: Projects: 47 Cost: $7,450,000 Red Area: Projects: 59 Cost: $7,485,000 Appendix

34 STORMWATER: proposed Proposed Stormwater Revenue Structure Type of Charge Current Proposed OMCI Sub-district Taxes (Green area per $00 Assessed Value) Stormwater O&M Tax (Yellow area per $00 Assessed Value) District-wide Regulatory Tax (Red area per $00 Assessed Value) District-wide Stormwater Tax (proposed) (Red area per $00 Assessed Value) Fixed Monthly Charge Single-Family Residential ($/unit) Fixed Monthly Charge Multi-Family Residential ($/unit) Total Tax $ $ $0 $ $0 $0.097 $0.097 N/A $0.00 $.24 $0 $.8 $0 Total Fees $ $0 $0.97 Table 5-34

35 STORMWATER: proposed Proposed Revenue Change Green Area Tax Rate Current $ $ $.0 (up to) Proposed $.0 Avg. Annual Cost $6.67/year -$9.75/year Total $.97 $4.92/year Change in total tax: -0.5% per $00 of assessed valuation, based upon average appraisal in green area of $84,500 Table ES-6 35

36 STORMWATER: proposed Proposed Revenue Change Yellow Area Tax Rate Current $ $.0682 Avg. Annual Cost $2.50/year Proposed $.0 +$3.60/year Total $.97 $6.0/year Change in total tax: 0.3% per $00 of assessed valuation, based upon average appraisal in yellow area of $70,800 Table ES-6 36

37 STORMWATER: proposed Proposed Revenue Change- Red Area Tax Rate Avg. Annual Cost Current $0.097 $0.52/ye ar Proposed $0.0 +$50.08/ year Total $.97 $60.60/ye ar Change in total tax:.2% per $00 of assessed valuation, based upon average appraisal in red area of $266,700 Table ES-6 37

38 Annualized impact of Wastewater and Stormwater revenue changes TOTAL CUSTOMER COST WASTEWATER + STORMWATER 38

39 WASTEWATER + STORMWATER: proposed Total Proposed Annual Customer Cost Single-Family Residential Proposed Average Annual Cost Total Annual Cost Percent Change Average Annual Cost without Bonds 2 Total Annual Cost FY6 $ N/A $ N/A Percent Change FY7 $ % $ % FY8 $ % $ % FY9 $ % $, % FY20 $ % $, % Table ES-4, Table ES-6 2 Table 4-25, Table ES-6 39

40 WASTEWATER + STORMWATER: proposed Total Proposed Annual Customer Cost Low-Income Residential Proposed Average Annual Cost Total Annual Cost Percent Change Average Annual Cost without Bonds 2 Total Annual Cost FY6 $26.83 N/A $26.83 N/A Percent Change FY7 $ % $ % FY8 $ % $ % FY9 $ % $ % FY20 $ % $ % Table ES-4, Table ES-6 2 Table 4-25, Table ES-6 40

41 WASTEWATER + STORMWATER Anticipated Revenue Change Process Proposal submitted to MSD Rate Commission February 26, 205 Final wastewater rate increase of April 202 rate plan implemented July, 205 Rate Commission Recommendation due to Board by August 205 MSD Board Approves Revenue Plan October-December 205 Tentative Bond Authorization and Stormwater Elections Calendar 206 MSD Board Adopts Revenue plan after elections 4

42 WASTEWATER + STORMWATER Rate Commission Formal Comments To submit formal comments to the Rate Commission for consideration in their process, please address to: jfenton@stlmsd.com Mail: 2350 Market Street, St. Louis MO 6303 Attn: Annette Slack, Secretary to Rate Commission Intervener Application Available at Deadline: March 20 42