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HomeMy Public PortalAboutExhibit MSD 2 - Rate Change Public NoticeExhibit MSD 2 Metropolitan St. Louis Sewer District 1 E- 11 MSD RATE CHANGE NOTICE The Metropolitan St. Louis Sewer District (MSD) has submitted to its Rate Commission a proposal for a Stormwater Capital Rate. These proposed changes would apply to all public and private property within the MSD service area, including properties owned by governmental or nonprofit entities, and those not receiving MSD wastewater sewer service. Levee Districts currently under agreements with MSD would be exempt from the proposed stormwater capital rate. RATE COMMISSION PROCESS: In 2000, changes to MSD's Charter were approved by area voters that required the creation of an independent Rate Commission. Composed of 15 member organizations representing a broad cross-section of MSD's customers and the community it serves, the Rate Commission is designed to provide public input into how rates are set. The Rate Commission process includes multiple public hearings and can last up to 165 days. This process began when a rate change proposal was formally referred to the Rate Commission by MSD staff on Monday, February 26, 2018. Over the next several months, the Rate Commission will review these rates and hold hearings to gather public input. STORMWATER CAPITAL PROGRAM: In 2016, District voters approved Proposition S, which resolved the issue of unequal storm sewer operations and maintenance funding across the MSD service area. While Proposition S was a significant step in improving stormwater services, it does not provide an ongoing funding source for addressing future capital improvements. MSD is proposing a stormwater capital rate that will generate revenues of $30 million annually to address localized flooding and erosion issues that are currently unfunded. The stormwater capital program would be funded by a charge based upon the amount of impervious surface, such as concrete, blacktop, and the footprint of the home, that does not absorb rainwater. The proposed rate was determined based on the recommended capital improvement program divided by the estimated units of impervious surface in the District's service area. Single family residential customers' impervious area will be measured and charged on a tiered basis. Non-residential customers' impervious area will be measured and customers will be charged based on units of 2,600 square feet, which is the amount of impervious area on a typical single-family residential lot or Equivalent Residential Unit (ERU). The proposed rate will be $2.25 per ERU. The proposed financial plan assumes that the proposed stormwater capital rate would be set at two-thirds of the approved level during MSD's Fiscal Years (FY) 2020 and 2021. This ramp -up is based on the lower revenue requirement of the first two years as the program is imple- mented and necessary personnel and projects are added before the rate is charged at approved levels beginning in FY 2022. The charts below depict a typical monthly MSD billing for wastewater, stormwater taxes, and the proposed stormwater capital rate. For more information on the rate proposal or the Rate Commission Process, please visit MSD's website at www.stlmsd.com/ratecommission or contact Marion Gee, Director of Finance, at (314) 768-6299. RESIDENTIAL IMPACT Il+.O:iE .']biutTalai FY 2020 Typical Monthly Wastewa:::. Rase Charge Volume Charge (7 Cc)) Total WastewaterBBl AM 5 26.35 34.09 $ 60.44 Stormwater Tortes/Charges (Typical Assessed Property Value = S42,000) OMCI (set to zero) Regulatory (2 cent tax) O&M (10 cent tax) Proposed Stormwater Capital Rate (1 ERU/Tler2) Monthly Stormwater Tax/Charge Total Monthly MSD Customer Revenues *Percentages do not add up mac* doe to roundlet; $ 0.66 3.40 2.25 39 5% 51 1% 90 5%* 0.0% 1.016 5 1% 3.4% $ 631 95% $ 66.75 100.0% NON-RESIDENTIAL IMPACT 11. 28= Typical i iL-u-w:y lase Charge Volume Charge (75 Ccf) Tier 1 Compliance Charge Total Wastewater Bill 26 35 365.25 3.14 $ 394 74 Stormwater Taxes/Charges (Typical Assessed Property Value = $223,000) OMCI (set to zero) $ Regulatory (2 cent tax) 3 50 O&M (10 cent tax) 18.05 Proposed Stormwater Capital Rate (16 ERUs) Monthly Stormwater Tam/Charges Total Monthly MSD Customer Revenues "Percentages de not add up exactly clue to rounding 36 00 $ 57.55 $ 452 29 58% 80 8% 079fi 87.3% 0 0% 0 8% 40% 80% 127%* 100.0% RESIDENTIAL STORMWATER CAPITAL RATE TIERS Square Pt of knlptrliuus Aria 2,001-3,600 lull Rase rii r 0.63 $U.95 51.4Z 1.00 T.50 2.25 Square r LP Impervious Mum :i,bU 1-6,000 EilUs 1,66 NY2M-Z1 WA/2 2.4 3 4 Above 6,000 3.04 4.56 Pull kite 3.74 6.84