HomeMy Public PortalAboutExhibit MSD 76 - Proposed Stormwater Small Grant ProgramSt. Louis Metropolitan Sewer District. 2350 Market Street, St. Louis, MO 63103 – 2555. 314-768-6200
Memo To: MSD Rate Commission
From: Brian L. Hoelscher, P.E. Executive Director and CEO MSD
Re: Enhanced Credit Program for Stormwater Rate – Alternative Proposal
Date: July 2, 2018
____________________________________________________________________________________
The Rate Commission has discussed the need for an enhanced credit program for the proposed
Stormwater Rate Proposal currently under consideration. MSD sees issues with the options being
discussed so far:
1. The credit programs being discussed focus on addressing water quality instead of flooding and erosion.
It has been noted in testimony, that there is an overall Stormwater benefit to the use of green
infrastructure practices. Stormwater water quality issues are currently funded through MSD’s two-cent
Regulatory Stormwater Tax and are not part of the current Rate Proposal.
2. As noted, it will be very difficult and in MSD’s opinion - not possible, to develop an enhanced
stormwater credit program, as part of the proposed Stormwater Rate, that does not require an increase in
rates to pay for the program or offers results in a benefit equal to the value of the credit. Thus reducing
the revenue needed for the development of infrastructure to address flooding and erosion.
As an alternative, we have addressed what we believe is the main focus of the Rate Commission
comments below:
1. MSD will develop a Stormwater Grant Program to address water quality issues in the
separate sewer system, similar to the program currently used in the Combined Sewer
System as part of the Consent Decree (see general details below). This program will be
paid for out of the revenues currently generated by the two-cent Regulatory Stormwater
property tax.
2. MSD will commit to proposing this program to its Board of Trustees upon a successful
vote on the proposed Stormwater Rate, currently in front of the Rate Commission.
2. MSD staff will consider proposing this program to its Board of Trustees, even if the current
Stormwater Rate proposal vote is not successful. The consideration will require an evaluation
of our Stormwater financing position after the vote of the public.
Stormwater Grant Program details:
MSD proposes to dedicate $300,000 of expenditures from the MSD two-cent regulatory property tax for
an additional “Rainscaping Small Grant Program” to incentivize green infrastructure projects within the
separate storm sewer system. The program will be similar to other initiatives within the District, such as
the wastewater funded CSO Green Infrastructure “Rainscaping Small Grant Program” and the 319 grant
funded “Deer Creek Water Quality Initiative Grant Program”.
St. Louis Metropolitan Sewer District. 2350 Market Street, St. Louis, MO 63103 – 2555. 314-768-6200
MSD’s main objective for the grant program is to encourage the use of simple green infrastructure or
“rainscaping” techniques by individual landowners for the primary purpose of helping the public to
understand how stormwater impacts the sewer system and the environment and how the public can be a
part of the solution through the use of rainscaping on their properties.
With the $300,000 funding amount, we anticipate funding the construction of approximately 75-100
projects, as well as, cover costs for homeowner workshops, technical assistance, final inspection and
maintenance workshops. A portion of the funding would be used for third party administration of the
program and the method for administration currently being utilized. The cost of the program was
determined by the general interest from the public the District has received from our other programs and
an evaluation of available funding balance within the Stormwater Regulatory Fund.
This type of Rainscaping Small Grant Program allows MSD to allocate funds, expendable to the separate
sewer system, to encourage these types of projects. Creating another small grants program now allows us
to take advantage of the momentum we are seeing for “rainscaping” projects. Once this program is
available, literally every property owner within MSD will have access to a Rainscaping Small Grants
Program, whether in the Bissell combined sewer area, the Lemay combined sewer area or the rest of the
District served by a separate storm sewer system.
Thank you for the opportunity to make this proposal. The District looks forward to further discussion as
we proceed with Rate Proposal deliberations.