HomeMy Public PortalAboutFY20 Budget - Public Hearing PresentationPublic HearingFiscal Year 2020 Budget, Taxes, User Charges and Capital Improvement & Replacement ProgramMay 9, 2019
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
FY19 Highlights•MSD Received Multiple Awards from NACWA, the GFOA, and WEF•Diversity by the Numbers•Stormwater Capital Rate Proposal10
Key Initiatives for FY20•Update Disparity Study•Wastewater Rate Proposal for fiscal years 2021 – 2024.11
FY20 District Funded Positions12969878981981936956963976 500 600 700 800 900 1,000 1,100FY16 FY17 FY18 FY19 FY201,000 1,019 1,011 1,021 1,027
13FY20 Proposed Budget ExpensesOperating Budget$215.9 32%CIRP$350.1 51%Debt Service$118.7 17%OperatingBudgetCIRPDebt Service($s in millions)Total = $684.7
Schedule ofResidential User Rates14Effective Date 7/1/18 7/1/1950.23$ 55.57$ 11%Average Monthly Residential Bill (6 Ccf)
Fiscal Year 2020 General Fund Expenditures15
FY20 General Fund BudgetBy Department 16FY20 FY19 $ % Civil Service Commission 10,000$ 10,000$ -$ 0.0%Rate Commission 110,850 595,508 (484,658) -81.4%Secretary-Treasurer (includes Board of Trustees)2,264,610 3,318,517 (1,053,907) -31.8%Executive Director3,916,401 3,918,653 (2,252) -0.1%General Counsel 3,377,530 3,153,946 223,584 7.1%Human Resources 8,658,542 8,386,447 272,095 3.2%Finance 21,250,139 21,376,078 (125,939) -0.6%Information Systems 16,995,349 15,735,089 1,260,260 8.0%Engineering 27,596,009 27,350,871 245,138 0.9%Operations 118,765,379 115,552,604 3,212,775 2.8%Total Departments 202,944,809$ 199,397,713$ 3,547,096$ 1.7%1,441,081 (0) 1,441,081Total General Fund Operating Budget 204,385,890$ 199,397,713$ 4,988,177$ 2.5%Energy Loan Debt Service 16,400 36,000 (19,600)204,402,290$ 199,433,713$ 4,968,577$ 2.5%CHANGEIncrementalsTotal General Fund Operating Budget with Energy Loan
Contractual Services23%Capital Outlay3%Utilities8%Supplies9%Personnel Services57%FY20 General Fund Operating Budget by Expense CategoryPersonnel Services $115.8Supplies 17.3Utilities 17.3Contractual Services 47.2Capital Outlay 6.8TOTAL $204.417($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 209,390,236 188,663,405 (20,726,831) -9.9%2019 214,218,193 198,440,445 (15,777,748) -7.4%2020 221,119,437 215,809,115 (5,310,322) -2.4%4 Year Total $ 848,030,866 $ 792,670,393 $ (55,360,473) -6.5%
Fiscal Year 2020Debt Service19
FY20 Debt Service($s in millions)20AuthorizationAmount Date Issued500$ Feb 2004 500$ 275$ Aug 2008 275$ 945$ Jun 2012 945$ 900$ Apr 2016 225$ Remaining Authorization 675$ Bond AuthorizationsFY19 FY20 VariancePrincipal 51.7$ 52.6$ 0.9$ Interest 66.4$ 63.0$ (3.4)$ Agency Fee 4.0$ 3.1$ (0.9)$ Debt Service ExpenseTotal Debt Service Expense 122.1$ 118.7$ (3.4)$
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 $102,168,959 $ (7,426,240) -6.8%2019 $126,382,173 $120,263,925 $ (6,118,248) -4.8%2020 $146,103,295 $118,705,619 $ (27,397,676) -18.8%4 Year Total $477,221,633 $430,552,956 $ (46,668,677) -9.8%
Fiscal Year 2020Capital Improvement & Replacement Program22
FY 2020 Final CIRP Program Summary23Type of Project Number BudgetWastewater Construction 52 255,740,000Wastewater Engineering 68 59,323,000Stormwater Construction 21 11,156,000Stormwater Engineering 3 700,000New Project Appropriations Subtotal: 144 326,919,000Wastewater Continued 3 20,000,000Stormwater Continued 6 3,214,000Continued Project Appropriations Subtotal: 9 23,214,000PROJECT APPROPRIATION TOTALS: 153 350,133,000
FY 2020 CIRPFinal vs. Preliminary Summary• 144 New vs. 154 New in preliminary• $326,919,000 vs. $353,821,000 in draftNew ProjectsContinued Projects• 9 Continued vs. 18 Continued in preliminary• $23,214,000 vs. $40,549,000 in draft24
51%9%FY 2020 CIRPNew Wastewater Projects15%• LANGLEY AND PHILO SANITARY STORAGE – design and acquisition for the construction of an 80,000 gallon storage tank and related sewers• MC-02 WATSON TO EDGAR RD SANITARY RELIEF (SKME-580A) –design for the construction of 5,700 feet of 27-36 inch sanitary sewer, and elimination of constructed SSO outfall BP-557• LOWER MERAMEC WWTF FITTING REPLACEMENT – construction to replace 60-inch and 48-inch fittings and isolation valves on primary influent and effluent lines• UNIVERSITY CITY I/I REDUCTION - EAST (UR-08 AND UR-09) PHASE II – construct 3,000 feet of storm sewer, and perform private I/I reduction at 22 properties25
51%9%FY 2020 CIRPNew Stormwater Projects15%• STORMWATER QUALITY GREEN INFRASTRUCTURE - SMALL GRANT RAINSCAPING PROGRAM – small grant program to encourage use of green infrastructure by homeowners• BROOKVALE TERRACE - PARKFIELD TERRACE STORM IMPROVEMENTS – new carryover project; cooperative effort with the City of Manchester, continued per the City’s current project schedule26
FY 2020 CIRP Continued ProjectsWastewater• Coordination with others 2• Construction phasing / scheduling 1Stormwater• Coordination with others 4• Scope change/design revisions 1• Property Acquisition 1Total 927
Type of Project Number BudgetWastewater 25 $140,427,000Stormwater 7 1,562,000Total: 32 $141,989,000FY 2020 CIRP Contingency Projects28
51%9%FY 2020 CIRP New Contingency Projects15%• BISSELL POINT WWTF MAIN SUBSTATION SWITCHGEAR AND MCC REPLACEMENT – supplemental funding for this project to replace switchgear and motor control center units• CSO VOLUME REDUCTION GREEN INFRASTRUCTURE – construction of green source control devices to reduce stormwater volumes entering the combined sewer system• DC-02 & DC-03 SANITARY RELIEF (BRENTWOOD BLVD TO CONWAY RD) PHASE III AND IV – engineering during construction services for this project that is constructing 16,200 feet of 8-54 inch sanitary sewer, and eliminating 7 sanitary sewer overflows29
51%9%FY 2020 CIRP New Contingency Projects15%• LANGLEY AND PHILO SANITARY STORAGE – construction of an 80,000 storage tank and related sewers• SOUTH COUNTY SANITARY RELIEF (P-419 TO CRIPPLE CREEK DR) – construction of 8,900 feet of 12-21 inch sanitary sewer• WOODS MILL SANITARY RELIEF (I-64 TO BROOK MILL LN) –construction of 2,790 feet pf 8-15 inch sanitary sewer • KENNY DR. – BOUNDARY RD. STORM SEWER – construction of 390 feet of 12-15 inch storm sewer 30
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STORM MAP• Continue Consent Decree compliance efforts• Continue CSO Volume Reduction Green Infrastructure Program• Address building backups and system surcharging• Remove 10 sanitary sewer overflow structures• Construct 77,000 feet of sanitary and storm sewers• Continue construction of the Deer Creek Sanitary Tunnel• Continue construction of the Maline Creek CSO Storage Facility• Address stormwater issues at 111 locationsCapital Program Benefitsfor FY 202032
Fiscal Year 2020 Sources and Uses of Funding33
FY20 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5$437.134
FY20 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $26.3535
FY20 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $26.35Unmetered (volume)Per Room $/mo. 2.89Per Water Closet $/mo. 10.72Per Bath/Shower $/mo. 8.9336
FY20 Wastewater User ChargesType of Charge Wastewater User Charge Base Charge $/mo. $26.35Unmetered (volume)Per Room $/mo. 2.89Per Water Closet $/mo. 10.72Per Bath/Shower $/mo. 8.93Metered Volume $/ccf 4.8737
FY20 Wastewater User ChargesCommercial/Industrial Customers Only. Tier based on number of sampling & test points.38Compliance Charge Wastewater User ChargeTier 1 $ 3.14Tier 2 62.61Tier 3 137.75Tier 4 203.49Tier 5 266.10
FY20 Wastewater User ChargesExtra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $283.87greater than 300 mg/lCommercial/Industrial Customers Only.39
FY20 Wastewater User ChargesExtra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $283.87greater than 300 mg/lBOD’s $/ton $708.56greater than 300 mg/lCommercial/Industrial Customers Only.40
FY20 Wastewater User ChargesExtra Strength SurchargeWastewater User Charge Suspended Solids $/ton $283.87greater than 300 mg/lBOD’s $/ton $708.56greater than 300 mg/lCOD’s $/ton $354.30greater than 600 mg/lCommercial/Industrial Customers Only.41
FY20 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5 $437.1Revenue Bonds 0.0 0.0 139.4 139.442
FY20 Sources and Uses of FundingSources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5 $437.1Revenue Bonds 0.0 0.0 139.4 139.4Taxes 22.2 0.0 12.5 34.743($s in millions)
FY20 Sources and Uses of Funding($s in millions)Sources of Funding Uses of FundingOPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5 $437.1Revenue Bonds 0.0 0.0 139.4 139.4Taxes 22.2 0.0 12.5 34.7Investment Income & Other5.6 0.4 4.4 10.444
FY20 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5 $437.1Revenue Bonds 0.0 0.0 139.4 139.4Taxes 22.2 0.0 12.5 34.7Investment Income & Other 5.6 0.4 4.4 10.4Fund Balance -20.9 0.7 83.3 63.1*45*(Increase) decrease in fund balance
FY20 Sources and Uses of Funding($s in millions)Sources of Funding Uses of Funding OPER DEBT CIRP TOTALWastewater User Charges $209.0 $117.6 $110.5 $437.1Revenue Bonds 0.0 0.0 139.4 139.4Taxes 22.2 0.0 12.5 34.7Investment Income & Other 5.6 0.4 4.4 10.4Fund Balance -20.90.783.363.1*TOTAL $215.9 $118.7 $350.1 $684.746
Fiscal Year 2020Tax Levies47
District-Wide Tax Levies2019TAX RATEADMINISTRATIVE TAX:CityCountyTotal Administrative TaxSTORMWATER TAX:CityCounty (Excluding Levee Districts)Total Stormwater TaxTOTAL DISTRICT-WIDE TAX8.67¢ per $1008.67¢ per $100$ 4,123,17023,834,867$ 27,958,037$ 33,538,3021.68¢ per $1001.68¢ per $100482019TAX LEVY$ 798,9534,781,312$ 5,580,265
Recommended OMCI Tax Levies 2019SUBDISTRICTS 2019 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 49
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