HomeMy Public PortalAboutExhibit MSD 30A - Informational Memo Regarding MSD’s Response to the RC’s 1st Discovery RequestMEMORANDUM
To: Rate Commission
From: Brian Hoelscher t
Re: MSD's Rate Change Proposal for Stormwater Rates
Date: March 19, 2018
Dear Rate Commission,
Staff has started developing responses to the Rate Commission's first discovery
request. Based on some of the requests, it appears I may not have done a
complete job in presenting the purpose of the Rate Proposal you are currently
considering. I would like to take this opportunity to provide additional information
that hopefully will clarify the purpose of this Rate Proposal and also support some
of staffs responses to the Rate Commission's first discovery request.
Per Section 7.040 of the MSD Charter, the Rate Commission is to "...review and
make recommendations to the Board regarding all proposed changes in
wastewater rates, stormwater rates and tax rates or change in the structure
of the foregoing." The current Rate Proposal before you proposes a new rate to
be used to fund a program to address the following stormwater issues; flooding
and erosion. We will answer all questions in the Rate Commission's first discovery
request based on this topic.
Probably more importantly, is to understand which MSD rates and taxes are not
being changed, with regard to rate or structure, and therefore are not part of the
current Rate Proposal.
There are three revenue sources and services that are not part of this Rate
Proposal
1. Wastewater Rates- MSD's wastewater rates and services are not being
changed in any way and therefore are not included in the current Rate
Proposal. They will be the subject of a future rate proposal scheduled to be
delivered in 2019. Since the Consent Decree only involves wastewater
issues, and is funded by wastewater rates, the Consent Decree
requirements or funding is not relevant to the current Rate Proposal.
Confidential & Privileged Attorney -Client Communications
2. Stormwater Taxes for Regulatory Issues- MSD's 2 cent property tax
used to fund stormwater regulatory services and the services themselves
are not being changed in any way and therefore are not part of the current
Rate Proposal. The current funding and structure should be sufficient for
the foreseeable future.
3. Stormwater Taxes for the Operation and Maintenance of the Public
Stormwater System- MSD's 10 cent property tax used to fund stormwater
operation and maintenance services and the services themselves are not
being changed in any way and therefore are not part of the current Rate
Proposal. The current funding and structure should be sufficient for the
foreseeable future. This is the tax recently passed as Proposition S.
I hope the Rate Commission finds this information useful.
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