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Home My Public Portal AboutPublic Hearing May 11 2017 - PresentationPublic Hearing Fiscal Year 2018 Budget, Taxes, User Charges and Capital Improvement & Replacement Program May 11, 2017 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 2 VISION STATEMENT Quality Service Always Strategic Business and Operating Plan 3 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 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 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 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 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; 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 FY17 Highlights •MSD Received Multiple Awards from NACWA and the GFOA •MSD Continued Implementation of Project Clear •Diversity by the Numbers – Innovative Vendor and Reporting Tools •Proposition S Approval Equalizes Stormwater Services and Funds Some Projects 1 0 Key Initiatives for FY18 •Continue Project Clear Activities •Continue Working with Regulators to Improve Efficiency and Cost Effectiveness of Consent Decree Requirements •Begin Stormwater Rate Case Development and Rate Commission Process 1 1 FY18 District Funded Positions 1 2 969 878 981 981 936 956 963 976 500 600 700 800 900 1,000 1,100 FY14 FY15 FY16 FY17 FY18 976 992 1,000 1,019 1,011 1 3 FY18 Proposed Budget Expenses Operating Budget $200.1 31% CIRP $339.1 52% Debt Service $109.1 17% Operating Budget CIRP Debt Service ($s in millions) Total = $648.3 Schedule of Residential User Rates 1 4 Effective Date 7/1/16 7/1/17 44.59$ 49.31$ 11%Average Monthly Residential Bill (7 Ccf) Fiscal Year 2018 General Fund Expenditures 1 5 FY18 General Fund Budget By Department 1 6 FY17 FY18 $% Civil Service Commission 10,000$ 10,000$ -$ 0.0% Rate Commission 0 594,304 594,304 N/A Secretary-Treasurer (includes Board of Trustees)1,809,168 1,899,735 90,567 5.0% Executive Director 1,933,508 3,403,911 1,470,403 76.0% General Counsel 2,552,379 2,601,943 49,564 1.9% Human Resources 10,299,833 8,799,956 (1,499,877)-14.6% Finance 20,533,378 20,300,675 (232,703)-1.1% Information Systems 13,773,149 13,880,415 107,266 0.8% Engineering 26,210,016 26,063,223 (146,793)-0.6% Operations 110,124,289 110,955,902 831,613 0.8% Total Departments 187,245,720$ 188,510,064$ 1,264,345$ 0.7% 76,893 0 (76,893) 1,407,576 1,407,576 Total General Fund Operating Budget 187,322,613$ 189,917,640$ 2,595,028$ 1.4% Energy Loan Debt Service 35,900 35,900 0 187,358,513$ 189,953,540$ 2,595,029$ 1.4% CHANGE Incrementals Total General Fund Operating Budget with Energy Loan Tax Commission Fee Contractual Services 22% Capital Outlay 3% Utilities 9% Supplies 9% Personnel Services 57% FY18 General Fund Operating Budget by Expense Category Personnel Services $109.5 Supplies 16.5 Utilities 17.5 Contractual Services 41.3 Capital Outlay 5.1 TOTAL $189.9 1 7 ($s in millions) Comparison: Current Projection to Rate Plan 1 8 O&M Expense Fiscal Year Rate Plan Projection Change % Change 2017 $ 203,302,999 $ 193,806,119 $ (9,496,880)-4.7% 2018 209,390,236 200,015,112 (9,375,125)-4.5% 2019 214,218,193 208,114,051 (6,104,143)-2.8% 2020 221,119,437 212,008,079 (9,111,358)-4.1% 4 Year Total $ 848,030,866 $ 813,943,361 $ (34,087,506)-4.0% Fiscal Year 2018 Debt Service 1 9 FY18 Debt Service ($s in millions) 2 0 Authorization Amount Date Issued 500$ Feb 2004 500$ 275$ Aug 2008 275$ 945$ Jun 2012 898$ 900$ Apr 2016 -$ Remaining Authorization 948$ Bond Authorizations FY17 FY18 Variance Principal 40.9$ 45.1$ 4.2$ Interest 52.5$ 59.2$ 6.7$ Agency Fee 5.4$ 4.8$ (0.6)$ Debt Service Expense Total Debt Service Expense 98.8$ 109.1$ 10.3$ Comparison: Current Projection to Rate Plan 2 1 Debt Service Fiscal Year Rate Plan Projections Change % Change 2017 $95,140,966 $90,061,790 $ (5,079,176)-5.3% 2018 $109,595,199 $107,965,250 $ (1,629,949)-1.5% 2019 $126,382,173 $128,611,046 $ 2,228,873 1.8% 2020 $146,103,295 $145,623,882 $ (479,413)-0.3% 4 Year Total $477,221,633 $472,261,968 $ (4,959,665)-1.0% 22 Fiscal Year 2018 Capital Improvement & Replacement Program 2 2 23 FY 2018 Final CIRP Program Summary 2 3 Type of Project Number Budget Wastewater Construction 70 240,503,000 Wastewater Engineering 80 58,274,000 Stormwater Construction 13 8,595,000 Stormwater Engineering 1 100,000 New Project Appropriations Subtotal: 164 307,472,000 Wastewater Continued 7 30,441,000 Stormwater Continued 2 1,199,000 Continued Project Appropriations Subtotal: 9 31,640,000 PROJECT APPROPRIATION TOTALS: 173 339,112,000 24 FY 2018 CIRP Final vs. Preliminary Summary • 164 New vs. 167 New in preliminary • $307,472,000 vs. $320,172,000 in draft New Projects Continued Projects • 9 Continued vs. 7 Continued in preliminary • $31,640,000 vs. $21,736,000 in draft 2 4 25 51% 9% FY 2018 CIRP New Projects 15% • Caulks Creek Forcemain (Waterworks Road to River Valley). Construct 3,070 feet of 30-inch diameter forcemain. • Coldwater Upstream Pump Station (P-180) Forcemain Replacement. Construct 2,900 feet of 10-inch diameter replacement forcemain. • Collingwood Drive Consolidation Sewer. Construct 1,750 feet of 18- inch to 21-inch diameter sanitary sewer. • Infrastructure Repairs (Facilities) (2018). Construct as needed repairs, replacement, & improvements at facilities as part of asset management. 2 5 26 51% 9% FY 2018 CIRP New Projects 15% • General Services Agreement – Facility and Sewer Design (2018) (Contract B). Design as needed repairs, replacement, & improvements at facilities as part of asset management. • Private Inflow and Infiltration Reduction Program. Continue program to eliminate private inflow and infiltration sources from the sanitary sewer system. • RDP Tributaries (Deer Creek) CSO Tunnel. Purchase land needed for tunnel construction. 2 6 27 FY 2018 CIRP Continued Projects Wastewater • Rebid required due to bid withdrawal 1 • Easement Acquisition/ Condemnation 3 • Scope Change/Design Revisions 3 Stormwater • Coordination With Others 1 • Scope Change/Design Revisions 1 Total 9 2 7 28 Type of Project Number Budget Wastewater 35 $222,599,000 Stormwater 3 2,815,000 Total: 38 $225,414,000 FY 2018 CIRP Contingency Projects 2 8 29 51% 9% FY 2018 CIRP New Contingency Projects 15% • Infrastructure Repairs (Facilities) (2019). Construct as needed repairs, replacement, & improvements at facilities as part of asset management. • Harlem – Baden Relief Phase IV (Hebert) (Goodfellow to Hamilton). Construct 7,200 feet of 12-inch to 48-inch sewer, and 3,000 feet of sewer lining, in the City of St. Louis. 2 9 30 3 0 31 STORM MAP •Continue Consent Decree compliance efforts •Continue CSO Volume Reduction Green Infrastructure Program •Address building backups and system surcharging •Remove 4 sanitary sewer overflow structures •Construct 50,000 feet of sanitary and storm sewers •Rehabilitate and reconstruct 6 pump stations •Continue construction of the Maline Creek CSO Storage Facility •Address stormwater issues at 44 locations Capital Program Benefits for FY 2018 3 1 Fiscal Year 2018 Sources and Uses of Funding 3 2 FY18 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 3 3 FY18 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $21.52 3 4 FY18 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $21.52 Unmetered (volume) Per Room $/mo. 2.35 Per Water Closet $/mo. 8.76 Per Bath/Shower $/mo. 7.30 3 5 FY18 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $21.52 Unmetered (volume) Per Room $/mo. 2.35 Per Water Closet $/mo. 8.76 Per Bath/Shower $/mo. 7.30 Metered Volume $/ccf 3.97 3 6 FY18 Wastewater User Charges Commercial/Industrial Customers Only. Tier based on number of sampling & test points. 3 7 Compliance Charge Wastewater User Charge Tier 1 $ 2.95 Tier 2 58.94 Tier 3 129.67 Tier 4 191.56 Tier 5 250.50 FY18 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $269.07 greater than 300 mg/l Commercial/Industrial Customers Only. 3 8 FY17 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $269.07 greater than 300 mg/l BOD’s $/ton $671.63 greater than 300 mg/l Commercial/Industrial Customers Only. 3 9 FY17 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $269.07 greater than 300 mg/l BOD’s $/ton $671.63 greater than 300 mg/l COD’s $/ton $335.82 greater than 600 mg/l Commercial/Industrial Customers Only. 4 0 FY17 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 Revenue Bonds 0.0 0.0 220.0 220.0 4 1 FY17 Sources and Uses of Funding Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 Revenue Bonds 0.0 0.0 220.0 220.0 Taxes 25.8 0.0 5.6 31.4 4 2 ($s in millions) FY17 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 Revenue Bonds 0.0 0.0 220.0 220.0 Taxes 25.8 0.0 5.6 31.4 Investment Income & Other 3.7 0.4 3.5 7.6 4 3 FY17 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 Revenue Bonds 0.0 0.0 220.0 220.0 Taxes 25.8 0.0 5.6 31.4 Investment Income & Other 3.7 0.4 3.5 7.6 Fund Balance (23.6) 0.8 51.7 28.9* 4 4 * (Increase) decrease in fund balance FY17 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $194.2 $107.9 $58.3 $360.4 Revenue Bonds 0.0 0.0 220.0 220.0 Taxes 25.8 0.0 5.6 31.4 Investment Income & Other 3.7 0.4 3.5 7.6 Fund Balance (23.6) 0.8 51.7 28.9* TOTAL $200.1 $109.1 $339.1 $648.3 4 5 Fiscal Year 2018 Tax Levies 4 6 District-Wide Tax Levies 2017 TAX RATE ADMINISTRATIVE TAX: City County Total Administrative Tax STORMWATER TAX: City County (Excluding Levee Districts) Total Stormwater Tax TOTAL DISTRICT-WIDE TAX 10.0¢ per $100 10.0¢ per $100 $ 4,059,339 22,108,070 $ 26,167,409 $ 31,378,166 1.96¢ per $100 1.96¢ per $100 4 7 2017 TAX LEVY $ 795,631 4,415,126 $ 5,210,757 Recommended OMCI Tax Levies 2017 SUBDISTRICTS 2016 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 $ - 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 4 8 4 9