HomeMy Public PortalAboutFY19 Budget Public Hearing SlidesPublic HearingFiscal Year 2019 Budget, Taxes, User Charges and Capital Improvement & Replacement ProgramMay 10, 2018
The Charter of the Metropolitan St. Louis Sewer District requires the development and maintenance of a continuing five-year Strategic and Operating Plan.SECTION 5.110. Strategic plan. --A continuing five-yearstrategic and operating plan for the District shall beadopted on an annual basis by the Board. The strategic andoperating plan shall state the District’s objectives for thesucceeding five years and include objective targets bywhich to measure the District’s performance in meetingthese objectives.Strategic Business and Operating Plan2
VISION STATEMENTQuality Service Always Strategic Business and Operating Plan3
MISSION STATEMENTTo protect the public’s health, safety, and water environment by responsibly providing wastewater and stormwater management.Strategic Business and Operating Plan4
VALUESIntegrity– Acting ethically at all times, treating everyone with honesty, fairness, and respect.Teamwork– Working together to accomplish our mission with open communication, trust, respect, and diversityInnovation – Embracing continuous improvement and new solutions to achieve excellence. Strategic Business and Operating Plan5
VALUES(Continued)Employees– Developing successful, responsible, and safety conscious employees and acknowledging their contributions. Customers– Building strong relationships by keeping our commitments, providing excellent service and being transparent in everything we do. Strategic Business and Operating Plan6
A. Deliver consistent, high quality customer service;B. Comply with all legal and regulatory requirements and schedules;C. Minimize customer rate increases; andD. Be accountable to the St. Louis community. GOALS7
STRATEGIES1. Educate and partner with stakeholders to build support; 2. Manage the District’s costs and revenues to optimize financial impacts;3. Integrate and improve the District’s business processes;8
STRATEGIES(Continued)4. Promote appropriate standards through proactive regulatory and legislative involvement;5. Address customer and regulatory needs through a comprehensive infrastructure management program;6. Create a learning and business oriented culture based on competency and accountability.9
FY18 Highlights•MSD Received Multiple Awards from NACWA and the GFOA•Diversity by the Numbers•Stormwater Capital Rate Proposal10
Key Initiatives for FY19•Update Disparity Study•Stormwater Capital Rate Timeline•Wastewater Rate Proposal for fiscal years 2021 – 2024.11
FY19 District Funded Positions12969878981981936956963976 500 600 700 800 900 1,000 1,100FY15 FY16 FY17 FY18 FY19992 1,000 1,019 1,011 1,021
13FY19 Proposed Budget ExpensesOperating Budget$210.4 30%CIRP$381.6 53%Debt Service$122.1 17%OperatingBudgetCIRPDebt Service($s in millions)Total = $714.1
Schedule ofResidential User Rates14Effective Date 7/1/17 7/1/1849.31$ 54.63$ 11%Average Monthly Residential Bill (7 Ccf)
Fiscal Year 2019 General Fund Expenditures15
FY19 General Fund BudgetBy Department 16FY19 FY18 $ % Civil Service Commission 10,000$ 10,000$ -$ 0.0%Rate Commission 595,508 594,304 1,204 0.2%Secretary-Treasurer (includes Board of Trustees)3,318,517 1,899,735 1,418,782 74.7%Executive Director3,596,589 3,403,911 192,678 5.7%General Counsel 3,153,946 2,601,943 552,003 21.2%Human Resources 8,286,447 8,799,956 (513,509) -5.8%Finance 20,977,478 20,300,675 676,803 3.3%Information Systems 14,927,653 13,963,301 964,352 6.9%Engineering 26,834,837 26,063,223 771,614 3.0%Operations 115,483,973 112,280,592 3,203,381 2.9%Total Departments 197,184,947$ 189,917,640$ 7,267,308$ 3.7%2,212,765 (0) 2,212,765Total General Fund Operating Budget 199,397,712$ 189,917,639$ 9,480,073$ 5.0%Energy Loan Debt Service 36,000 35,900 (100)199,433,712$ 189,953,539$ 9,479,973$ 5.0%CHANGEIncrementalsTotal General Fund Operating Budget with Energy Loan
Contractual Services23%Capital Outlay3%Utilities9%Supplies8%Personnel Services57%FY19 General Fund Operating Budget by Expense CategoryPersonnel Services $113.1Supplies 16.5Utilities 17.6Contractual Services 45.3Capital Outlay 6.9TOTAL $199.417($s in millions)
Comparison: Current Projection to Rate Plan18O&M ExpenseFiscal Year Rate Plan Projection Change% Change2017 $ 203,302,999 $ 189,757,428 $ (13,545,571) -6.7%2018 209,390,236 190,656,379 (18,733,857) -8.9%2019 214,218,193 211,124,853 (3,093,340) -1.4%2020 221,119,437 215,641,228 (5,478,209) -2.5%4 Year Total $ 848,030,866 $ 807,179,888 $ (40,850,978) -4.8%
Fiscal Year 2019Debt Service19
FY19 Debt Service($s in millions)20AuthorizationAmount Date Issued500$ Feb 2004 500$ 275$ Aug 2008 275$ 945$ Jun 2012 945$ 900$ Apr 2016 153$ Remaining Authorization 748$ Bond AuthorizationsFY18 FY19 VariancePrincipal 45.1$ 51.7$ 6.6$ Interest 59.2$ 66.4$ 7.2$ Agency Fee 4.8$ 4.0$ (0.8)$ Debt Service ExpenseTotal Debt Service Expense 109.1$ 122.1$ 13.0$
Comparison: Current Projection to Rate Plan 21Debt ServiceFiscal Year Rate Plan Projections Change % Change2017 $95,140,966 $89,414,453 $ (5,726,513) -6.0%2018 $109,595,199 $101,997,735 $ (7,597,464) -6.9%2019 $126,382,173 $120,364,058 $ (6,018,115) -4.8%2020 $146,103,295 $138,328,850 $ (7,774,445) -5.3%4 Year Total $477,221,633 $450,105,096 $ (27,116,537) -5.7%
Fiscal Year 2019Capital Improvement & Replacement Program22
FY 2019 Final CIRP Program Summary23Type of Project Number BudgetWastewater Construction 61 257,438,000Wastewater Engineering 81 65,602,000Stormwater Construction 39 19,436,000Stormwater Engineering 7 5,230,000New Project Appropriations Subtotal: 188 347,706,000Wastewater Continued 6 32,600,000Stormwater Continued 2 1,330,000Continued Project Appropriations Subtotal: 8 33,930,000PROJECT APPROPRIATION TOTALS: 196 381,636,000
FY 2019 CIRPFinal vs. Preliminary Summary• 188 New vs. 188 New in preliminary• $347,706,000 vs. $362,113,000 in draftNew ProjectsContinued Projects• 8 Continued vs. 10 Continued in preliminary• $33,930,000 vs. $35,150,000 in draft24
51%9%FY 2019 CIRPNew Projects15%• FEE FEE TRUNK SEWER RELIEF (SKME-002, LONG LEAF CIRCLE TO THAMES COURT). Design services for the construction of 2,900 feet of 21-inch diameter sanitary sewer.• LOWER MERAMEC WWTF CORROSION AND HUMIDITY CONTROL IMPROVEMENTS. Additional design costs needed for correction of corrosion problems at the Lower Meramec treatment facility.• SUMMERHAVEN DRIVE #11656 STORM SEWER. Construct 375 feet of 12-inch to 24-inch storm sewer.25
FY 2019 CIRP Continued ProjectsWastewater• Coordination with others 4• Construction phasing / scheduling 2Stormwater• Scope Change/Design Revisions 2Total 826
Type of Project Number BudgetWastewater 26 $154,256,000Stormwater 12 7,398,000Total: 38 $161,654,000FY 2019 CIRP Contingency Projects27
51%9%FY 2019 CIRP New Contingency Projects15%• FORDER SANITARY INTERCONNECTION (FORDER RD TO RINGER RD). Construct 100 feet of 10-inch sanitary sewer.• MACKENZIE I/I REDUCTION (RESURRECTION CEMETERY, WEHNER PARK, KENRICK SEMINARY, AND NERINX HALL). Perform private I/I reduction at 78 properties.• RIVERPORT 6 PUMP STATION (P-781) REPLACEMENT. Rehabilitate Pump Station P-781.• STONINGTON PLACE SANITARY RELIEF (CLAYTON RD TO GEORGIAN ACRES ST). Construct 238 feet of 12-inch sanitary sewer.28
51%9%FY 2019 CIRP New Contingency Projects15%• CHERRY TREE LANE STORM IMPROVEMENT. Construct 1,190 feet of 12-inch to 36-inch storm sewer, and concrete box culvert.• KAYSER AVE. - WALLER AVE. STORM SEWER. Construct 625 feet of 12-inch to 15-inch storm sewer.29
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STORM MAP• Continue Consent Decree compliance efforts• Continue CSO Volume Reduction Green Infrastructure Program• Address building backups and system surcharging• Remove 11 sanitary sewer overflow structures• Construct 80,000 feet of sanitary and storm sewers• Continue construction of the Deer Creek Sanitary Tunnel• Continue construction of the Maline Creek CSO Storage Facility• Address stormwater issues at 134 locationsCapital Program Benefitsfor FY 201931
Fiscal Year 2019 Sources and Uses of Funding32
FY19 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5$403.333
FY19 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $23.8334
FY19 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $23.83Unmetered (volume)Per Room $/mo. 2.61Per Water Closet $/mo. 9.70Per Bath/Shower $/mo. 8.0835
FY19 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $23.83Unmetered (volume)Per Room $/mo. 2.61Per Water Closet $/mo. 9.70Per Bath/Shower $/mo. 8.08Metered Volume $/ccf 4.4036
FY19 Wastewater User ChargesCommercial/Industrial Customers Only. Tier based on number of sampling & test points.37Compliance Charge Wastewater User ChargeTier 1 $ 3.05Tier 2 60.89Tier 3 133.96Tier 4 197.91Tier 5 258.79
FY19 Wastewater User ChargesExtra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $277.03greater than 300 mg/lCommercial/Industrial Customers Only.38
FY19 Wastewater User ChargesExtra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $277.03greater than 300 mg/lBOD’s $/ton $691.50greater than 300 mg/lCommercial/Industrial Customers Only.39
FY19 Wastewater User ChargesExtra Strength SurchargeWastewater User Charge Suspended Solids $/ton $277.03greater than 300 mg/lBOD’s $/ton $691.50greater than 300 mg/lCOD’s $/ton $345.76greater than 600 mg/lCommercial/Industrial Customers Only.40
FY19 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5 $403.3Revenue Bonds 0.0 0.0 190.0 190.041
FY19 Sources and Uses of FundingSources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5 $403.3Revenue Bonds 0.0 0.0 190.0 190.0Taxes 13.5 0.0 19.8 33.342($s in millions)
FY19 Sources and Uses of Funding($s in millions)Sources of Funding Uses of FundingOPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5 $403.3Revenue Bonds 0.0 0.0 190.0 190.0Taxes 13.5 0.0 19.8 33.3Investment Income & Other5.6 0.5 5.8 11.943
FY19 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5 $403.3Revenue Bonds 0.0 0.0 190.0 190.0Taxes 13.5 0.0 19.8 33.3Investment Income & Other 5.6 0.5 5.8 11.9Fund Balance 29.8 1.3 44.5 75.6*44*(Increase) decrease in fund balance
FY19 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $161.5 $120.3 $121.5 $403.3Revenue Bonds 0.0 0.0 190.0 190.0Taxes 13.5 0.0 19.8 33.3Investment Income & Other 5.6 0.5 5.8 11.9Fund Balance 29.81.344.575.6*TOTAL $210.4 $122.1 $381.6 $714.245
Fiscal Year 2019Tax Levies46
District-Wide Tax Levies2018TAX RATEADMINISTRATIVE TAX:CityCountyTotal Administrative TaxSTORMWATER TAX:CityCounty (Excluding Levee Districts)Total Stormwater TaxTOTAL DISTRICT-WIDE TAX9.71¢ per $1009.71¢ per $100$ 4,158,96522,793,461$ 26,952,426$ 32,332,1771.88¢ per $1001.88¢ per $100472018TAX LEVY$ 805,2374,574,514$ 5,379,751
Recommended OMCI Tax Levies 2018SUBDISTRICTS 2018 Proposed Tax LevyResidential Agricultural Commercial Personal PropertyTax Rate Per $100 Assessed Value BLACK CREEK $ - 0.0000 0.0000 0.0000 0.0000 CLAYTON-CENTRAL $ - 0.0000 0.0000 0.0000 0.0000 COLDWATER CREEK $ - 0.0000 0.0000 0.0000 0.0000 CREVE COEUR $ - 0.0000 0.0000 0.0000 0.0000 DEER CREEK $ - 0.0000 0.0000 0.0000 0.0000 FOUNTAIN CREEK $ - 0.0000 0.0000 0.0000 0.0000 GRAVOIS CREEK $ - 0.0000 0.0000 0.0000 0.0000 LORETTA-JOPLIN $ - 0.0000 0.0000 0.0000 0.0000 MALINE CREEK $ - 0.0000 0.0000 0.0000 0.0000 MERAMEC RIVER BASIN $ - 0.0000 0.0000 0.0000 0.0000 MISSOURI RIVER-BONFILS $ - 0.0000 0.0000 0.0000 0.0000 NORTH AFFTON AREA $ - 0.0000 0.0000 0.0000 0.0000 SEMINARY BRANCH - RDP $ - 0.0000 0.0000 0.0000 0.0000 SHREWSBURY - RDP $ - 0.0000 0.0000 0.0000 0.0000 SUGAR CREEK $ - 0.0000 0.0000 0.0000 0.0000 UNIV. CITY BRANCH - RDP $ - 0.0000 0.0000 0.0000 0.0000 WATKINS CREEK $ - 0.0000 0.0000 0.0000 0.0000 WELLSTON $ - 0.0000 0.0000 0.0000 0.0000 48
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