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HomeMy Public PortalAboutExhibit MSD 57 - Rate Commission Orientation and SummaryMSD Rate Commission March 4, 2019 1 Orientation MSD Governance 2 MSD Board of Trustees •Six members: Three appointed by the Mayor of St. Louis Three appointed by the St. Louis County Executive •Current Members City: Jim Faul - Chairman Annette Mandel Freddie Dunlap County: Rev. Ronald Bobo – Vice Chairman Michael Yates James Singer 3 MSD History 4 MSD Created •MSD was created in 1954 pursuant to the State Constitution. 5 Article VI Section 30(a). Powers conferred with respect to intergovernmental relations - The people of the City of St. Louis and the people of the county of St. Louis shall have power… to establish a metropolitan district or districts for the functional administration of services common to the area included therein. District Charter •Charter created pursuant to the Missouri Constitution, Article VI Section 30(b) •Missouri Constitution explicitly states that such a Charter adopted by the voters shall become the organic law of the territory and shall take the place of and supersede all laws, charter provisions and ordinances inconsistent therewith. •Immune from legislative interference 6 District Charter •Amended in November 2000: -Established the Rate Commission -Allowed the District to issue revenue bonds as authorized by District voters •Amended in 2012 with minor updates •Can be found on MSD’s website at: http://www.stlmsd.com/our- organization/organization-overview/our-charter 7 Charter Decision Criteria Applicable to Rate Commission and MSD Board Assure any proposed change in rate or rate structure: (1)is consistent with constitutional, statutory or common law as amended from time to time; (2)enhances the District’s ability to provide adequate sewer and drainage systems and facilities, or related services; (3)is consistent with and not in violation of any covenant or provision relating to any outstanding bonds or indebtedness of the District; (4)does not impair the ability of the District to comply with applicable Federal or State laws or regulations as amended from time to time, and (5)imposes a fair and reasonable burden on all classes of ratepayers. 8 Wastewater Rates 9 Key Issues for Consideration 10 •Complies with Charter requirements •Level of bonding vs cash (“PAYGO”) •Voter support of additional bonding •Impact of “No Bonding” scenario •Generational implications •Affordability •Equitability •Underlying rate assumptions: -Customer growth -Water Usage -Inflation -Consent Decree Compliance -Low income access Typical Residential Monthly Bill in Existing Proposal compared to 2015 Proposal 11 $ 0.00 $ 10.00 $ 20.00 $ 30.00 $ 40.00 $ 50.00 $ 60.00 $ 70.00 $ 80.00 $ 90.00 $ 100.00 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Typical Monthly Bill for Residential Metered Customer Using 6 Ccf's FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 2015 Rate Proposal $ 55.57 $ 61.47 $ 67.96 $ 75.13 $ 83.11 $ 85.63 $ 92.10 $ 93.09 $ 94.08 Percent Change 10.6% 10.6% 10.6% 10.6% 3.0% 7.6% 1.1% 1.1% 2019 Rate Proposal $ 55.57 $ 56.63 $ 58.78 $ 61.02 $ 63.36 $ 67.97 $ 70.43 $ 72.91 $ 75.25 Percent Change 1.9% 3.8% 3.8% 3.8% 7.3% 3.6% 3.5% 3.2% Elements of 2019 Proposal compared to 2015 Proposal 12 •Impact of 2018 Consent Decree Amendment •Operation and Maintenance Expense •Cost of the Capital Program •Financing Cost (Debt vs. PAYGO) Future Milestones 13 •Scheduling of Wastewater Rate Design Workshop (optional) •Submission of District’s Rate Proposal and testimony by March 4, 2019 •RC Rate Recommendation Report submitted to Board by August 16, 2019 meeting (assuming 45 day extension) •Changes to rates become effective July 1, 2020 Informational Packet 14 Informational Packet Contents •Rate Commission Budget •MSD Support Staff Roster •Professional Services Contracts •MSD Charter requirements specific to Rate Commission responsibilities •WiFi and Document Management 15 WiFi and Document Management 16 WiFi will be available for the Rate Commission throughout the rate review process while at 2350 Market. Document Management: •Similar to the most recent Rate Commission proceeding, MSD will manage the recording and collection of all exhibits and provide easy access to all information via MSD’s website. •Information will be posted to https://www.stlmsd.com/msd-rate- commission. Instructions for accessing WiFi and the exhibits are contained in your information packet. Public Communication with Rate Commission 17 •In addition to Rate Commission meetings and public hearings, the public has access to the Rate Commission via e-mail at ratecommission@stlmsd.com. •Emails sent to this address go directly to the Rate Commission’s Chair, Vice-Chair, Secretary, and Legal Counsel. Questions? 18