HomeMy Public PortalAboutFY15-budget-hearing-presentation1
Public Hearing
Fiscal Year 2015 Budget, Taxes,
User Charges and Capital
Improvement & Replacement
Program
May 8, 2014
2
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-year
strategic and operating plan for the District shall be
adopted on an annual basis by the Board. The strategic and
operating plan shall state the District’s objectives for the
succeeding five years and include objective targets by
which to measure the District’s performance in meeting
these objectives.
Strategic Business and Operating Plan
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3
VISION STATEMENT
Quality Service Always
Strategic Business and Operating Plan
3
4
MISSION STATEMENT
To protect the public’s health, safety, and
water environment by responsibly providing
wastewater and stormwater management.
Strategic Business and Operating Plan
4
5
VALUES
Integrity – 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
diversity
Innovation – Embracing continuous improvement and
new solutions to achieve excellence.
Strategic Business and Operating Plan
5
6
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 Plan
6
7
A.Deliver consistent, high quality customer
service;
B.Comply with all legal and regulatory
requirements and schedules;
C.Minimize customer rate increases; and
D.Be accountable to the St. Louis
community.
GOALS
7
8
STRATEGIES
1.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;
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9
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.
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10
FY14 Highlights
•Implementation of Consent Decree
•Supreme Court Hearing of Impervious
Stormwater Rate
•Completion of Disparity Study
•Continuation of Project Clear
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0
11
Key Initiatives for FY15
•Continue Project Clear Related Activities
•Submit New Wastewater and Stormwater Rates to
Rate Commission
•Initiate Activities Under Community Benefits
Agreement
•Issue of $165 Million in Bonds
•Technology System Upgrades
•Develop FY15 Budget to Align with the Rate Report
through FY16
1
1
FY15 District Funded Positions
1
2
969
878
981 981
936 956 963 976
500
600
700
800
900
1000
1100
FY10 FY11 FY12 FY13 FY14 FY15
981 936 956 963 976 987
1
3
FY15 Proposed Budget Expenses
Operating
Budget
$204.1
37%
CIRP
$284.2
51%
Debt Service
$66.7
12%
Operating Budget
CIRP
Debt Service
($s in millions)
Total = $555.0
Schedule of
Residential User Rates
1
4
Wastewater FY14 FY15
%
Change
Effective Date 7/1/13 7/1/14
Rate: Base Charge 14.85$ 16.25$ 9%
Volume Charge per ccf 2.50$ 2.82$ 13%
(1)34.85$ 38.81$ 11%
Stormwater
Effective Date 8/1/10 8/1/10
Single Family & Commercial per Month 0.24$ 0.24$
Multi-Family-Charge per Unit per Month 0.18$ 0.18$
(1)Based on 8 ccfs / Month
Average Monthly Residential Bill
15
Fiscal Year 2015
General Fund Expenditures
1
5
FY14 FY15 $%
Civil Service Commission 20,000$ 10,000$ (10,000)$ -50.0%
Secretary-Treasurer 1,690,025 1,650,422 (39,603) -2.3%
Executive Director (1)1,182,755 1,096,279 (86,476) -7.3%
General Counsel 3,043,794 2,558,204 (485,590) -16.0%
Human Resources 11,509,593 12,850,462 1,340,869 11.7%
Finance (2)19,550,659 22,491,850 2,941,191 15.0%
Information Systems 11,796,768 12,086,038 289,270 2.5%
Engineering 23,752,832 23,789,400 36,568 0.2%
Operations 94,598,768 101,345,855 6,747,087 7.1%
167,145,194$ 177,878,509$ 10,733,315$ 6.4%
4,901,155 4,901,155
167,145,194$ 182,779,664$ 15,634,470$ 9.4%
Non-operating Other 38,232$ 560,000$ 521,768$
Total 167,183,426$ 183,339,664$ 16,156,238$ 9.7%
Includes Board of Trustees
Includes Rate Commission
CHANGE
Total Departments
Incrementals
Total General Fund
Operating Budget
FY15 General Fund Budget
By Department
1
6
17
Personnel
Services
58%
Supplies
9%
Capital
Outlay
2%
Utilities
9%
Contractual
Services
22%
FY15 General Fund Budget
by Expense Category
Personnel Services $ 98.7
Supplies 18.1
Utilities 16.2
Contractual Services 46.0
Capital Outlay 3.8
TOTAL $182.8
1
7
($s in millions)
18
Comparison:
FY15 Budget to Rate Report
1
8
O&M Expense
Fiscal Year RC Budget Projections Change
%
Change
2013 $ 166,212,200 $ 156,798,448 $ (9,413,752)-5.7%
2014 174,817,600 172,145,795 (2,671,805)-1.5%
2015 184,977,900 187,845,904 2,868,004 1.6%
2016 190,120,000 191,524,475 1,404,475 0.7%
4 Year Total $ 716,127,700 $ 708,314,622 $ (7,813,078)-1.1%
19
Fiscal Year 2015
Debt Service
1
9
20
FY15 Debt Service
($s in millions)
Outstanding Debt Outstanding Debt Outstanding Debt
Issued Service Issued Service Issued Service
Amount Date $Expense $Expense $Expense %
$500 Feb 2004 500.0$ 28.9$ 500.0$ 22.7$ -$ (6.2)$ -21.5%
$275 Aug 2008 275.0 14.1 275.0 13.8 - (0.3) -1.9%
$945 Jun 2012 427.0 14.5 592.0 30.2 165.0 15.7 108.8%
Total Current 1,202.0$ 57.5$ 1,367.0$ 66.7$ 165.0$ 9.2$ 16.1%
FY14 FY15 Change
Authorization
2
0
21
Comparison:
FY15 Budget to Rate Report
2
1
Debt Service
Fiscal Year RC Budget Projections Change % Change
2013 $58,051,000 $53,055,659 $ (4,995,341)-8.6%
2014 $72,338,500 $56,213,171 $ (16,125,329)-22.3%
2015 $84,504,100 $66,713,040 $ (17,791,060)-21.1%
2016 $96,885,700 $84,358,734 $ (12,526,966)-12.9%
4 Year Total $311,779,300 $260,340,604 $ (51,438,696)-16.5%
22
Fiscal Year 2015
Capital Improvement &
Replacement Program
2
2
23
2
3
24
Type of Project Number Cost
• Wastewater Construction 68 $ 181,742,000
• Wastewater Engineering 91 66,548,000
• Stormwater Construction 25 6,538,000
• Stormwater Engineering 0 0
Proposed Projects Subtotal: 184 $254,828,000
• Continued Wastewater 8 $ 28,600,000
• Continued Stormwater 1 180,000
Continued Projects Subtotal: 9 $ 28,780,000
Project Totals: 193 $283,608,000
FY 2015 Final CIRP
Program Summary
2
4
25
FY 2015 CIRP
Final vs. Draft Summary
• 184 New vs. 179 New in draft
• $254,828,000 vs. $262,687,000 in draft
New Projects
Continued Projects
• 9 Continued vs. 10 Continued in draft
• $28,780,000 vs. $31,550,000 in draft
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5
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51% 9%
FY 2015 CIRP
New Wastewater Projects
15%
• Construction Management Services – Missouri WWTP
Secondary Expansion & Disinfection. Continuation of
construction management services for ongoing construction at
the Missouri River treatment facility.
• Lemay Watershed Public I/I Removal – North Hampton Creek.
Design of the rehabilitation of public sewers and manholes, and
service connections repairs, to reduce public I/I.
• Suburban Public I/I Reduction (Harrison Dr and Suburban
Ave). Design of the rehabilitation of public sewers and manholes,
and service connections repairs, to reduce public I/I.
2
6
27
51% 9%
FY 2015 CIRP
New Wastewater Projects (cont)
15%
• Cedarcrest Private I/I Reduction (SKME-561). Construct
private I/I reduction, a supplemental phase of work to this
currently ongoing construction project.
• Oakland Combined Sewer Detention and Storage (Clayton Ave
and Oakland Ave). Construct detention and storage
improvements, which are to be made in conjunction with
redevelopment of the Forest Park Hospital Grounds.
• Ridgemoor Drive I/I Reduction & Storm Improvements (SKME-
574). Construct private I/I reduction, and an underground
detention system. Project includes stormwater improvements,
which are budgeted separately out of the Black Creek OMCI.
2
7
28
51% 9%
FY 2015 CIRP
New Stormwater Projects
15%
• Ridgemoor Drive I/I Reduction & Storm Improvements (SKME-
574). Construct 1,000 feet of 12-inch to 24-inch storm sewer.
Project includes wastewater improvements, which are budgeted
separately out of the Sanitary Replacement Fund.
• Stormwater Infrastructure Repair / Replacement – Maline
Creek OMCI. Construct infrastructure repair projects as needed
in the Maline Creek OMCI area.
• Stormwater Infrastructure Repair / Replacement – Seminary
Branch OMCI. Construct infrastructure repair projects as needed
in the Seminary Branch OMCI area.
2
8
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FY 2015 CIRP
Continued Projects
Wastewater
• Coordination With Others 1
• Easement Acquisition/ Condemnation 7
Stormwater
• Projects in Design/ Scope Changes 1
Total 9
2
9
30
Type of Project Number Budget
• Wastewater 27 $100,375,000
• Stormwater 9 1,203,000
Total: 36 $101,578,000
FY 2015 CIRP
Contingency Projects
3
0
31
51% 9%
FY 2015 CIRP New Wastewater
Contingency Projects
15%
• Ballas Road Subtrunk South Public I/I Reduction. Rehabilitate
60,000 feet of sewers. This is a supplemental appropriation.
• Bissell – Coldwater – Missouri – Meramec Public I/I Reduction
(2015) Contract D. Rehabilitate 67,000 feet of sewers. This is a
supplemental appropriation.
• Bissell – Coldwater – Missouri – Meramec Public I/I Reduction
(2015) Contract G. Rehabilitate 50,000 feet of sewers. This is a
supplemental appropriation.
• Bissell & Lemay WWTP Incinerator Scrubber Replacement.
Construct incinerator scrubber replacement to meet new Clean
Air Act regulations. This is a supplemental appropriation.
3
1
32
51% 9%
FY 2015 CIRP New Wastewater
Contingency Projects (cont)
15%
• CSO – Gingras Creek and I/I Reduction (BP-059). Construct
7,500 feet of 66-inch combined sewer in tunnel, and 1,300 feet
of 8-inch to 30-inch sewer. This is a supplemental appropriation.
• DC-02 & DC-03 Sanitary Relief (Brentwood Blvd to Conway Rd)
Phase I). Construct 5,400 feet of 78-inch public sewer. This
project would be a new start if appropriated in FY15.
• Harlem – Baden Relief Phase IV (Hebert) (Detention Basin).
Construct detention basin. This is a supplemental appropriation.
• Infrastructure Repair #087P Caulks Creek A (P-750) Phase VI.
Construct 11,400 feet of force main. This is a supplemental
appropriation.
3
2
33
51% 9%
FY 2015 CIRP New Wastewater
Contingency Projects (cont)
15%
• Lemay Public I/I Reduction (2015) Contract B. Rehabilitate
63,000 feet of sewers. This is a supplemental appropriation.
• Lower Meramec Watershed I/I Removal. Rehabilitate the Lower
Mattese Trunk Sewer. This is a supplemental appropriation.
• Upper Maline Trunk Sanitary Relief Phase IV Section A.
Construct 7,300 feet of sanitary sewer. This is a supplemental
appropriation.
• UR-10 Mendell and Wolter Sanitary Relief (SKME-595).
Construct 7,800 feet of sanitary sewer. This is a supplemental
appropriation.
3
3
34
51% 9%
FY 2015 CIRP New Stormwater
Contingency Projects
15%
• Stormwater Infrastructure Repair/Replacement – Watkins
Creek OMCI. Construct stormwater infrastructure repairs as
needed in the Watkins Creek OMCI area. This is a supplemental
appropriation.
3
4
35
3
5
36
OMCI MAP
23 TAXING
SUBDISTRICTS
3
6
37
STORM MAP
•Continue Consent Decree compliance efforts
•Remove 18 sanitary sewer overflow structures
•Remove 4 combined sewer overflow structures
•Address building backups and system surcharging
•Rehabilitate existing infrastructure
•Continue CSO Volume Reduction Green Infrastructure
Program
•Characterization and assessment of 140 miles of sewers
and related structures
•Address stormwater issues at 40 locations
Capital Program Results
for FY 2015
3
7
38
Capital Program Projections over 4 Year
Rate Commission Period – FY 2013 to 2016
•Program savings through scope optimization, design efficiencies, and
favorable bid results have enabled the program to absorb changes without
negatively impacting rate payers.
•The 4 year program is expected to remain within and under budget.
•MSD anticipates meeting all Consent Decree and wastewater regulatory
requirements expected through 2016.
FY
2011 Uninflated
Budget
Rate Commission
Adjusted and
Inflated Budget
Projections From
Finance Budget
Presenatation
Yearly
Variance
% Yearly
Variance
2013 $ 255,819,000 $215,188,000 $170,441,034 -$44,746,966 -20.79%
2014 $ 203,777,000 $239,245,000 $206,136,312 -$33,108,688 -13.84%
2015 $ 227,534,500 $247,017,000 $275,240,000 $28,223,000 11.43%
2016 $ 197,607,750 $269,565,000 $301,703,000 $32,138,000 11.92%
4 Year Total 884,738,250$ $971,015,000 $953,520,346 -$17,494,654 -1.80%
3
8
39
Fiscal Year 2015
Sources and Uses of Funding
3
9
40
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 66.8 28.7 278.0
4
0
41
FY15 Wastewater User Charges
Type of Charge Wastewater User Charge
Base Charge $/mo. $16.25
4
1
42
FY15 Wastewater User Charges
Type of Charge Wastewater User Charge
Base Charge $/mo. $16.25
Unmetered (volume)
Per Room $/mo. 1.83
Per Water Closet $/mo. 6.88
Per Bath/Shower $/mo. 5.73
4
2
43
FY15 Wastewater User Charges
Type of Charge Wastewater User Charge
Base Charge $/mo. $16.25
Unmetered (volume)
Per Room $/mo. 1.83
Per Water Closet $/mo. 6.88
Per Bath/Shower $/mo. 5.73
Metered Volume $/ccf 2.82
4
3
44
FY15 Wastewater User Charges
Commercial/Industrial Customers Only. Tier based on number of sampling & test points.
4
4
Compliance Charge Wastewater User Charge
Tier 1 9.00
Tier 2 43.55
Tier 3 92.75
Tier 4 136.00
Tier 5 179.25
45
FY15 Wastewater User Charges
Extra Strength Surcharge Wastewater User Charge
Suspended Solids $/ton $244.03
greater than 300 mg/l
Commercial/Industrial Customers Only.
4
5
46
FY15 Wastewater User Charges
Extra Strength Surcharge Wastewater User Charge
Suspended Solids $/ton $244.03
greater than 300 mg/l
BOD’s $/ton $620.14
greater than 300 mg/l
Commercial/Industrial Customers Only.
4
6
47
FY15 Wastewater User Charges
Extra Strength Surcharge Wastewater User Charge
Suspended Solids $/ton $244.03
greater than 300 mg/l
BOD’s $/ton $620.14
greater than 300 mg/l
COD’s $/ton $310.07
greater than 600 mg/l
Commercial/Industrial Customers Only.
4
7
48
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
4
8
49
FY15 Stormwater User Charges
Type of Charge Stormwater User Charge
Single Family &
Commercial
24 ¢ per account
Multi-unit Residential 18 ¢ per unit per account
4
9
50
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
Revenue Bonds 0.00 13.9 153.0 166.9
5
0
51
FY15 Sources and Uses of Funding
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
Revenue Bonds 0.0 13.9 153.0 166.9
Taxes 15.2 0.0 8.8 24.0
5
1
($s in millions)
52
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
Revenue Bonds 0.0 13.9 153.0 166.9
Taxes 15.2 0.0 8.8 24.0
Investment Income & Other 6.1 0.2 18.5 24.8*
5
2
* Includes $16.2 million interfund revenue for Stormwater services.
53
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
Revenue Bonds 0.0 13.9 153.0 166.9
Taxes 15.2 0.0 8.8 24.0
Investment Income & Other 6.1 0.2 18.5 24.8
Fund Balance (0.7) (14.2) 75.0 60.1*
5
3
* (Increase) decrease in fund balance
54
FY15 Sources and Uses of Funding
($s in millions)
Sources of Funding Uses of Funding
OPER DEBT CIRP TOTAL
Wastewater User Charges $182.5 $66.8 $28.7 $278.0
Stormwater User Charges 1.0 0.0 0.2 1.2
Revenue Bonds 0.0 13.9 153.0 166.9
Taxes 15.2 0.0 8.8 24.0
Investment Income & Other 6.1 0.2 18.5 24.8
Fund Balance (0.7) (14.2) 75.0 60.1
TOTAL $204.1 $66.7 $284.2 $555.0
5
4
55
Fiscal Year 2015
Tax Levies
5
5
56
District-Wide Tax Levies
2014
TAX RATE
ADMINISTRATIVE TAX:
City
County
Total Administrative Tax
STORMWATER TAX:
City
County (Original MSD Boundaries)
Total Stormwater Tax
TOTAL DISTRICT-WIDE TAX
6.7¢ per $100
6.7¢ per $100
$ 2,750,530
7,469,713
$ 10,220,243
$ 15,255,044
1.9¢ per $100
1.9¢ per $100
5
6
2014
TAX LEVY
$ 795,139
4,239,662
$ 5,034,801
57
Recommended OMCI Tax Levies 2014
5
7
SUBDISTRICTS 2014
Proposed
Tax Levy
Residential Agricultural Commercial Personal
Property
Tax 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 $ 1,794,695 0.1000 0.1000 0.1000 0.1000
CREVE COEUR $ - 0.0000 0.0000 0.0000 0.0000
DEER CREEK $ 3,419,713 0.0860 0.1000 0.0840 0.0930
FOUNTAIN CREEK $ - 0.0000 0.0000 0.0000 0.0000
GRAVOIS CREEK $ 1,327,136 0.0820 0.0600 0.0860 0.0860
LORETTA -JOPLIN $ 21,540 0.0790 0.0000 0.0780 0.0900
MALINE CREEK $ 644,885 0.1000 0.1000 0.1000 0.1000
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 $ 59,429 0.0820 0.0000 0.0660 0.0850
SEMINARY BRANCH - RDP $ 221,524 0.0710 0.0000 0.0780 0.0760
SHREWSBURY - RDP $ 19,588 0.0660 0.0000 0.0650 0.0820
SUGAR CREEK $ 260,012 0.0550 0.0000 0.1000 0.0690
UNIV. CITY BRANCH - RDP $ 829,408 0.0930 0.0000 0.0950 0.0940
WATKINS CREEK $ 148,254 0.1000 0.1000 0.1000 0.0990
WELLSTON $ 31,615 10 0.0000 0.1000 0.1000
TOTAL $ 8,777,799
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