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