HomeMy Public PortalAboutExhibit MSD 9 - 2015 Comprehensive Annual Financial Report (CAFR)1 YEAR AGO - OLD N O R T H R A I NGARDEN
THE METROPOLITANST. LOUIS SEWER DISTRICT
COMPREHENSIVE ANNUALFINANCIALREPORT
FISCAL YEAR ENDING JUNE 30, 2015
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
JUNE 30, 2015 AND 2014
Report prepared and submitted by the
Department of Finance
Marion M. Gee
Director of Finance
Contents
Page
Part I - Introductory Section:
Letter Of Transmittal ............................................................................................. i - xii
Organizational Chart ................................................................................................. xiii
Certificate Of Achievement For Excellence In Financial Reporting .......................................................................................... xiv
Part II - Financial Section:
Independent Auditors’ Report .......................................................................... 1 - 3
Management’s Discussion And Analysis - Required
Supplementary Information ........................................................................ 4 - 16
Basic Financial Statements
Statements Of Net Position............................................................................ 17 - 18
Statements Of Revenues, Expense And Changes In Net Position ..................... 19
Statements Of Cash Flows ............................................................................. 20 - 21
Notes To Financial Statements ...................................................................... 22 - 79
Required Supplementary Information - Schedule Of Changes
In Net Pension Liability And Related Ratios, Schedule Of
Employer Contributions - Employees’ Pension Plan And
Other Post-Employment Benefit Plan ..................................................... 80 - 81
Part III – Statistical Section:
Net Position By Component .................................................................................. 82
Changes In Net Position ........................................................................................ 83
Operating Revenues By Source ............................................................................. 84
Operating Expenses ............................................................................................... 85
Non-Operating Revenues And Expenses .............................................................. 86
User Charge Rates ................................................................................................. 87
Sewer User Charges (Composite-Annual) ............................................................ 88
Number Of Customers By Type ............................................................................ 89
Ten Largest Customers ......................................................................................... 90
Ratios Of Outstanding Debt By Type ................................................................... 91
Computation Of Overlapping Debt ....................................................................... 92
Pledged Revenue Coverage ................................................................................... 93
Demographic And Economic Statistics ................................................................. 94
Principal Employers (St. Louis Metropolitan Area) ............................................ 95
Employment Level ................................................................................................. 96
Average Flow .......................................................................................................... 97
Operating And Capital Indicators ........................................................................ 98
Introductory Section
Vision Statement
Quality Service Always
Mission Statement
To protect the public’s health, safety, and water
environment by responsibly providing wastewater
and stormwater management
Values
Integrity
Teamwork
Excellence and Innovation
The District Employees
Customer Satisfaction
Mission, Vision, Value statements are important elements of a
strategic business plan. The Mission statement keeps the
District focused on its essential activity, the Vision statement
points to its ideal purpose, and the Value statement conveys the
principles that must shape our actions.
i
October 13, 2015
The Board of Trustees
The Metropolitan St. Louis Sewer District
The Comprehensive Annual Financial Report (“CAFR”) of The Metropolitan St. Louis
Sewer District (“MSD” or the “District”) for the fiscal year ended June 30, 2015, is
submitted herewith. The District’s Finance Department prepared this report. The
District is responsible for the accuracy of the data and the completeness and fairness of
the presentation of the financial statements and other information presented herein.
We believe the presentation is accurate in all material respects and includes all
disclosures necessary to enable the reader to gain a reasonable understanding of the
District’s financial activities. In the CAFR, the District’s financial activities are
measured on a single enterprise fund basis where all funds of the District and its sub-
districts are consolidated.
The District’s CAFR includes an Introductory Section, a Financial Section, and a
Statistical Section. The Introductory Section includes this transmittal letter, lists of the
District’s Board of Trustees, Rate Commission Chair, members of the Civil Service
Commission, management staff, and an organization chart as of June 30, 2015. The
Financial Section includes the independent auditors’ report, management’s discussion
and analysis, and the District’s basic financial statements. The Statistical Section
includes financial, economic, and demographic information, generally presented on a
multi-year basis.
The CAFR includes all funds of the District. The operations of these funds, as reflected
in the financial statements, are under the control of the District’s governing body. The
District has determined there were no other agencies or entities that met the
established criteria for inclusion in the reporting entity.
The Board of Trustees
The Metropolitan St. Louis Sewer District
ii
Organization
MSD was created in 1954 to provide a metropolitan-wide sewer system to serve the City
of St. Louis and most of the more heavily populated areas of St. Louis County. Before
MSD’s creation, the City of St. Louis, various municipalities, and private sewer
companies provided sewer service that primarily included only collecting and
transporting sewage from small geographic areas to nearby rivers and streams with
little or no treatment. Most of the municipalities or private sewer companies serving
the area did not have the jurisdictional authority or financial resources needed to
eliminate health hazards from untreated sewage.
When the District began operations, it took over the publicly owned wastewater and
stormwater drainage facilities within its jurisdiction and began the construction of an
extensive system of collector and interceptor sewers and treatment facilities. In 1977,
voters approved the District’s annexation of a 270 square mile area of the lower
Missouri River and lower Meramec River watersheds. The District purchased the
Fee Fee Trunk Sewer Company and the Missouri Bottoms Sewer Company in 1978.
MSD has since acquired other investor-owned or municipally operated systems.
The District’s service area now encompasses 525 square miles including all 62 square
miles of the City of St. Louis and 463 square miles of St. Louis County. The current
population served by the District is approximately 1.3 million.
MSD is organized pursuant to Article VI, Section 30 of the Missouri State Constitution
that empowers the people of St. Louis County and the City of St. Louis “to establish a
metropolitan district for functional administration of services common to the area.”
MSD is the only district established pursuant to that section of the Missouri State
Constitution.
The Charter of MSD (“Plan”), approved by voters in 1954 and amended in 2000 and
2012, established the District. The Plan describes the District as “a body corporate, a
municipal corporation, and a political subdivision of the state.” As a political
subdivision of the state, MSD is comparable to a county or city, such as St. Louis
County or the City of St. Louis.
The Plan established the governing body of the District as a six-member Board of
Trustees (“Board”) with three members appointed by the Mayor of St. Louis and three
members appointed by the St. Louis County Executive. No more than two trustees from
each area can be of the same political affiliation.
The Board of Trustees
The Metropolitan St. Louis Sewer District
iii
Unlike a corporation’s board of directors that is responsible solely to the stockholders
who choose to invest in the corporation, MSD’s Board members are trustees of public
property and public funds. They are responsible to all citizens within the District.
According to the Plan, the Board enacts District ordinances, determines policies, and
appoints the Executive Director, the Secretary-Treasurer, and the Internal Auditor.
The Executive Director appoints all other District officials. Among its duties, the Board
makes all appropriations, approves contracts for improvements, and engages an
accounting firm to perform the annual independent audit of the District.
The Plan prescribes other duties of the Board and grants numerous broad powers,
subject to federal and state laws, to the District and the Board of Trustees. Among
other things, the Plan outlines the following requirements or provisions:
• Requires that MSD operate with a balanced budget;
• Details how MSD can tax property and requires an annual public hearing
on all taxes levied by the District;
• Details how MSD can establish user charges;
• Requires MSD to establish civil service rules and regulations governed by
a Civil Service Commission;
• Provides how the original boundaries of the District may be extended to
include any area in St. Louis County; and
• Requires MSD to approve all plans and designs for proposed construction,
alteration, or reconstruction of sewer or drainage facilities within the
District’s boundaries.
The District is also governed by the Missouri State Constitution and various federal and
state laws that among other requirements mandate the following:
• MSD must hold permits for all sanitary discharges. These permits require
a minimum of secondary treatment.
• MSD must provide wastewater treatment in an area-wide manner to
qualify for federal and state grants.
• MSD must operate, maintain, and replace facilities to provide proper
wastewater treatment or be subject to penalties and fines.
• MSD must set user charge rates in compliance with the Federal Clean
Water Act. These rates must be submitted to the Missouri Department of
Natural Resources to receive future construction grants and to avoid the
possibility of refunding past grants.
The Board of Trustees
The Metropolitan St. Louis Sewer District
iv
During fiscal 2015 the primary source of funding for the operation and maintenance of
MSD’s wastewater system was a user charge averaging $431.88 per year or $35.99 per
month for a single-family residence. The District’s charges for residential wastewater
service are tied to the amount of measured water usage during a winter quarter. For
residential properties without water meters, the charges are based on housing
attributes (such as the number of rooms, baths, and toilets) that correlate to water
usage. That methodology is the same billing methodology used by the City of St. Louis
Water Division for their non-metered properties. Multi-family residential and non-
residential rates are proportionate to the single-family charge and are based on water
consumption and the strength of the discharge.
In Fiscal Year 2015, the operation and maintenance of the District’s stormwater system
was funded by a combination of property taxes and flat fee billing of 24¢ per month for
residential and commercial properties and 18¢ cents per month per unit for multi-unit
properties.
MSD also receives some federal, state, and local grants to help defray the cost of
constructing sewage treatment and drainage facilities and improvements. The District
also charges fees for plan review, permits, construction inspection of new system
development, and special discharges. The District charges a uniform connection fee in
all service areas.
The District, itself, may issue general obligation bonds and revenue bonds to finance the
cost of improvements and extensions to the sewer system. The District also may issue,
on behalf of each of its sub-districts, general obligation bonds, revenue bonds, or special
assessment bonds.
Major Initiatives Affecting The Financial Resources Of The District
In June 2007 the District was sued by the Department of Justice on behalf of the
United States Environmental Protection Agency (“EPA”) and the Missouri Department
of Natural Resources (“DNR”) for various alleged violations of the Clean Water Act.
The Missouri Coalition for the Environment joined the suit as an intervener in August
2007. After a lengthy mediation, a Consent Decree (“CD”) was entered by the Federal
Court on April 27, 2012. This entry resolved all alleged violations. Compliance with
the CD requires the District to implement a multi-decade, multi-billion dollar capital
improvement program and rehabilitate significant portions of the existing wastewater
sewer system. This effort will continue to be funded by a combination of rate increases
and issuance of additional debt based on the completion of milestones defined in the
CD.
The Board of Trustees
The Metropolitan St. Louis Sewer District
v
Integral to helping MSD’s rate payers understand the Consent Decree is MSD’s
initiation of Project Clear. MSD Project Clear is a long-term effort by MSD, undertaken
as part of the Consent Decree agreement with the U.S. Environmental Protection
Agency and the Missouri Coalition for the Environment. Project Clear’s aims are to:
• Improve water quality for everyone;
• Solve problems for some of our customers created by the very nature and design
of St. Louis’ wastewater system;
• Provide clear, up-to-date information to the public about Consent Decree
activities.
MSD Project Clear focuses on three categories of work: Get the rain out; Repair and
maintain; and Build system improvements. Get the rain out focuses on preventing
excess stormwater from entering the sewer system through a variety of project types,
including downspout disconnections, and rainscaping. Repair and maintain continues
the work MSD has done to repair, maintain, and renew the existing sewer system, on a
faster timeline. Build system improvements involves new construction of wastewater
management structures, including deep underground tunnels and above-ground storage
tanks.
The District’s Board of Trustees implemented an impervious based stormwater rate on
March 1, 2008, replacing its prior funding mechanism of property taxes and user fees.
On July 9, 2010, a circuit court of St. Louis County found this impervious rate to be
unconstitutional under Missouri law. In response to this ruling, the Board suspended
the impervious based stormwater rate and reinstituted the District’s stormwater
property taxes and user fees, previously rolled back on a voluntary basis, as part of the
stormwater rate plan. The District lost both of its subsequent appeals to the Appellate
and Missouri Supreme Court negating the culmination of a 20-year effort to adequately
fund much needed stormwater services for District rate payers. The impact of this
court decision has resulted in a dramatic reduction in stormwater services being
provided across the District with many customers receiving little or no stormwater
services until an alternative funding source is identified.
The Board of Trustees
The Metropolitan St. Louis Sewer District
vi
The District submitted a rate change proposal to the MSD Rate Commission on
February 26, 2015. The proposal recommended an increase in MSD’s wastewater rates
in order to adequately fund the work required by the Consent Decree. The proposal also
recommended the establishment of a new District-wide tax structure to replace the
multi-layered taxes now assessed on the real estate value of our customers’ property.
These taxes have traditionally been used to fund stormwater services, including
operations, maintenance, very limited capital projects, and regulatory compliance.
However, this system of funding stormwater service has proven itself to be inequitable
and does not cover the current costs of maintaining and operating a significant portion
of the stormwater infrastructure MSD owns. The Rate Commission’s recommendation
to the District’s proposal was received by the Board on August 5, 2015. On October 8,
2015, the Rate Commission’s recommendation was adopted by the Board of Trustees.
The Rate Commission was established in the District’s Plan by amendment in 2000.
Beginning in 2002, the District began submitting rate increase proposals to the MSD
Rate Commission to fund its operations and multi-decade capital infrastructure
improvement program. The District submits rate increase proposals to the Rate
Commission as needed in accordance with the Plan. As stated above, the District
submitted a rate change proposal to the MSD Rate Commission in February 2015.
Since February 2004, the voters of St. Louis have authorized the District to issue a total
of $1.7 billion in wastewater revenue bonds. As of June 30, 2015, the District has
issued $1.2 billion of the total authorization. The District’s long-term wastewater
capital improvement program will continue to be funded through a combination of
additional bonds and wastewater rate increases.
The District is also upgrading its extensive billing and collection system to incorporate
the latest utility technology. The new system will result in more efficient processes and
the ability to continue to expand its customer outreach efforts. The new technology will
provide state of the art capabilities to utilize the multiple ways now available to better
communicate with its customers, understand their needs, and continue to align the
District’s responsiveness accordingly. Full implementation of the system occurred on
September 1, 2015.
In 2013, MSD completed a Disparity Study to identify any disparities in the District’s
expenditure of public funds when compared to the availability of minority and women
owned firms. The study also examined the number of minorities and women working
on MSD projects compared to the racial and gender composition of workers available to
work on MSD projects. Procurement and contractual changes based on the study’s
findings were put into place in August 2013.
The Board of Trustees
The Metropolitan St. Louis Sewer District
vii
The Disparity Study also made recommendations for other activities the District should
consider as part of a successful Diversity Program.
To help implement some of the recommendations, MSD developed a Community
Benefits Agreement (“CBA”). A CBA is a formal agreement between MSD and
community organizations that establishes a framework for addressing issues in
workforce training, business development, and other areas that often act as obstacles in
developing a diverse labor pool and contracting community. (In short, it’s one thing to
have inclusion goals, but it’s another to have a program that helps develop the capacity
to the meet those goals.) The CBA will support the development of initiatives that
address these issues, both in terms of workforce and business ownership. To our
knowledge, the CBA is the only one of its kind in the St. Louis region.
Operations
The Executive Director and his staff administer the operation and maintenance of the
District’s collection and treatment systems. The District’s sanitary, stormwater, and
combined sewer collection system includes more than 9,500 miles of pipe and channel
and will grow larger over the long term due to new development. Some years may
actually see a reduction in total miles of pipe. This is due to the replacement of
inefficiently placed pipe with shorter, more direct lines of pipe. The District’s
responsibilities for stormwater drainage range from cleaning and maintaining street
inlets to operating and maintaining the floodwall pump stations along the Mississippi
River.
MSD currently operates 7 wastewater treatment facilities. These facilities treated an
average flow of 327.5 million gallons per day (“MGD”) in fiscal 2015 compared to 273.8
MGD in fiscal 2014. The design capacity and average flow, by watershed, in MGD was
as follows in fiscal 2015:
MAJOR
WATERSHED
LEVEL OF
TREATMENT
NUMBER
OF
FACILITIES
DESIGN
CAPACITY
AVERAGE FLOW
FISCAL 2015
Mississippi River Secondary Two 417.00 245.0
Missouri River Secondary Two 78.00 51.3
Meramec River Secondary Three 42.75 31.2
Total Seven 537.75 327.5
The Board of Trustees
The Metropolitan St. Louis Sewer District
viii
In addition to construction initiated by the District to protect the public’s health and
property from raw sewage and flooding, the District also provides various engineering-
related design review and inspection services for the construction of sanitary and
stormwater sewers by individuals, businesses, and municipalities in the community.
Economic Conditions In The St. Louis Metropolitan Area
As a rule, the District’s major revenue sources do not fluctuate with the local and
national economy as much as local governments that depend on sales or income taxes
for their major sources of revenue. The combined unemployment rate for the City of
St. Louis and St. Louis County was 5.9 percent in June 2015 and higher than the
national unemployment rate of 5.5 percent for the same time period.
MSD has its own internal barometers for measuring economic development within the
District. These are listed below for fiscal 2015 and 2014:
2015 2014
Sewer Plan Reviews:
Number of Plans Approved 529 487
Number of Miles of Sewers 22 36
Sewer Construction Permits:
Number of Permits Issued 3,447 3,472
Number of Miles of Sewers 33 29
Customer Connections:
Number of Connection Permits Issued 2,017 1,764
Connection Fee Revenue (in millions) $1.8 $1.5
Value of Sewers Dedicated to
MSD by Developers (in millions) $12.3 $6.9
Over the years, the St. Louis economy has undergone a transformation from reliance on
traditional manufacturing industries to those industries based on advanced technology
and services. The St. Louis area is a center for health care, biotechnology, banking,
finance, transportation, tourism, and education and has a strong and diverse
manufacturing economy. The area has an abundance of energy, water, and sewerage
facilities and can sustain future economic growth.
The Board of Trustees
The Metropolitan St. Louis Sewer District
ix
Financial Information
Proprietary Operations. The current financial condition of MSD remains stable. The
District realized a net operating income of $33.9 million in fiscal 2015 compared to a net
operating income of $24.5 million the prior year. The increase is explained by an
increase in sewer service revenue (as a result of rate increases) offset by an increase in
operating expenses (primarily utility costs and depreciation). A more in depth analysis
of the District’s financial position and the magnitude of the capital improvement and
replacement program (“CIRP”) is provided in the Management’s Discussion and
Analysis section that appears later in this report.
Budgetary Controls. The District’s Plan requires MSD to submit a proposed budget to
the Board by March 15th each year. After Board review, a final budget is approved in
June. The District’s Plan also requires MSD to maintain budgetary controls and to
adopt a balanced budget. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the appropriation process approved by the
Board. The annual appropriated budget includes activities of the District’s operating
and debt service funds. The Board adopts ordinances to appropriate funds for capital
improvement expenditures at the time of the contract award and acceptance of any
grant offers.
Budgetary control is by Division and major expenditure category within the General
Fund, each Debt Service Fund, and each capital improvement contract. The District
utilizes an encumbrance accounting system in conjunction with internal variance and
projection analysis to maintain budgetary control. Certain encumbrances carry over
from one year to the next as approved by the Board during the budget process.
Monthly and year-end financial reports are prepared in accordance with United States
generally accepted accounting principles for Enterprise Funds. Adjustments are made
to the accounting records, where necessary, to reflect the full accrual method of
accounting. Under the full accrual method of accounting, revenues are recognized when
earned and expenses are recorded as liabilities when incurred. Encumbrances and
unearned capital and operating grants are eliminated under the full accrual method of
accounting. These amounts are disclosed as commitments in the footnotes to the
financial statements.
Cash Management. In compliance with its Plan, the District invests temporarily idle
funds in cash, cash equivalents and investments such as collateralized certificates of
deposit, collateralized repurchase agreements, obligations of any agency of the United
States, and United States Treasury instruments. The District utilizes competitive
bidding for investment purchases and monitors market conditions daily.
The Board of Trustees
The Metropolitan St. Louis Sewer District
x
Risk Management. In-house staff and consultants jointly conduct risk management
activities. MSD maintains third-party commercial insurance coverage for various risks
while self-insuring for other risks and liabilities at levels customary for similar
enterprises. The District maintains replacement cost property and casualty insurance
with a policy limit of $1.25 billion on certain facilities and equipment that have an
estimated replacement cost of $1.5 billion. The District assumes the risk of loss
(including payment of water backup claims to its customers) on the majority of its
underground pumping facilities and collection system. MSD is one of the few sewer
districts in the country known to provide water backup claim coverage to its customers.
The underground pumping facility and collection system assets have an estimated
replacement cost of $9.9 billion. To minimize exposure to loss, the District inspects its
facilities regularly, performs preventative maintenance on them, and maintains excess
liability coverage.
MSD maintains automobile and general liability insurance. The District is self-insured
for workers’ compensation and funds those costs through annual appropriations from
the District’s general insurance fund. The District maintains reinsurance for workers’
compensation liabilities in excess of specified limits up to the statutory limit. Risk
control activities include using a third-party claims administrator, maintaining a
computerized claim tracking system, and annually reevaluating medical insurance
claims and health benefit costs. The District also has programs designed to promote
safety in the workplace and employee wellness.
The District provides group medical coverage for its employees and offers dependent
medical coverage on a contributory basis through a self-insured plan. Effective
February 1, 2014, the District maintained stop loss coverage for specific claims
exceeding $175,000 per year and for total annual claims greater than 125 percent of the
annual claims estimate. The District provides its employees with contributory group
dental insurance coverage and non-contributory life insurance and contributory
optional life insurance coverage. The District also contributes $100 every fiscal year, up
to a maximum of $300, to a vision care program for employees. Effective July 1, 2013,
spouses were eligible to use the benefits; however, the amount could not exceed the
maximum amount of $300. The District reevaluates insurance coverage and providers
annually.
For most construction projects, insurance is obtained by the individual contractor and
included in the contract price.
The Board of Trustees
The Metropolitan St. Louis Sewer District
xi
Internal Controls. District Management is responsible for designing, establishing, and
maintaining an internal control system that protects District assets from loss, theft, or
misuse and ensures that adequate accounting data is compiled to prepare financial
statements in conformity with United States generally accepted accounting principles.
Internal control systems are designed to provide reasonable, but not absolute,
assurance that these objectives are met. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived
and that the evaluation of costs and benefits requires estimates and judgments by
management. The District’s internal control system is subject to periodic evaluation by
Management, the Board and the District’s independent accountants.
Other Information
Audit Requirements. The District’s Plan requires an annual audit by independent
certified public accountants. The District’s CAFR includes a report on the District’s
financial statements by the accounting firm of RubinBrown LLP.
Besides meeting the requirements set forth in the Plan, the annual audit is also
designed to meet the requirements of the 1996 amendments to the Federal Single Audit
Act and the United States Office of Management and Budget (“OMB”) Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations. A Single Audit
Report was issued for the year ended June 30, 2015.
The financial statements of the Metropolitan St. Louis Sewer District Employees’
Pension Plan, Deferred Compensation Plan and Defined Contribution Plan are also
audited annually. These audits were issued as of December 31, 2014 and are available
to interested parties upon request.
Awards. The Government Finance Officers Association of the United States and
Canada (“GFOA”) awarded a Certificate of Achievement for Excellence in Financial
Reporting to MSD for its CAFR for the fiscal year ended June 30, 2014. The Certificate
of Achievement is a prestigious national award that recognizes conformance with the
highest standards for preparation of state and local government financial reports.
To be awarded the Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized CAFR, the contents of which conform to
program standards. The CAFR must satisfy both U.S. generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for
one year only. The District has received a Certificate of Achievement for the last
twenty-seven consecutive years. We believe the current CAFR continues to conform to
the GFOA’s high standards, as reflected in the Certificate of Achievement program
requirements, and are submitting it again this year for consideration.
The Board of Trustees
The Metropolitan St. Louis Sewer District
xii
The District also received the GFOA’s Distinguished Budget Presentation award for its
fiscal 2015 annual budget. The District has received this award for twenty-eight
consecutive years. We believe the FY16 budget presentation continues to meet the
GFOA’s high standards and submitted it August 26, 2015, for consideration.
Marion M. Gee
Director of Finance
xiii
ORGANIZATION
(as of June 30, 2015)
BOARD OF TRUSTEES
Michael Yates, Chair; James Faul, Vice Chair; Bob Berry;
Annette Mandel; Valerie Patton; Ruby Bonner
OFFICE OF INTERNAL AUDITOR
RATE COMMISSION
Leonard P. Toenjes, Chair
OFFICE OF SECRETARY TREASURER
Tim R. Snoke
Secretary/Treasurer
CIVIL SERVICE COMMISSION
William C. Duffe
Tara Buckner
Annette Adams
EXECUTIVE DIRECTOR
Brian L. Hoelscher/CEO
FINANCE
Marion M. Gee
Director
(Effective 9.8.15)
OFFICE OF GENERAL COUNSEL
Susan M. Myers General Counsel
OPERATIONS
Jonathon C. Sprague
Director
ENGINEERING Rich Unverferth
Director
OFFICE OF HUMAN RESOURCES
Vicki L. Taylor Edwards
Director
INFORMATION SYSTEMS
Barbara E. Mohn
Director
xiv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
In Financial
Reporting
Presented to
Metropolitan St. Louis
Sewer District, Missouri
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2014
Executive Directors/CEO
Financial Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
SERVICE AREAS
Independent Auditors’ Report
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report On The Financial Statements
We have audited the accompanying financial statements of the business-type activities of
The Metropolitan St. Louis Sewer District (the District) as of and for the years ended
June 30, 2015 and 2014, and the related notes to the financial statements, which
collectively comprise the District’s financial statements as listed in the table of contents.
Management’s Responsibility For The Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audits. We conducted our audits in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Controller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Board of Trustees
The Metropolitan St. Louis Sewer District
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of the business-type activities of the District as of June 30,
2015 and 2014, and the changes in financial position and cash flows thereof for the years
then ended, in accordance with accounting principles generally accepted in the United
States of America.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, the District adopted the provisions of
Governmental Accounting Standards Board Statement No. 68, Accounting and
Financial Reporting for Pensions – An Amendment of GASB Statement No. 27, as
amended by GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date in fiscal year 2015. Our opinion is not modified
with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
the Management’s Discussion and Analysis, Schedule of Employer Contributions and
Schedule of Changes in Net Pension Liability and Related Ratios for the Employees’
Pension Plan, and Schedule of Funding Progress for the Other Post-Employment
Benefit Plan, as listed in the table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Board of Trustees
The Metropolitan St. Louis Sewer District
Page 3
Other Information
Our audit was conducted for the purpose of forming an opinion on the District’s basic
financial statements. The introductory section and statistical section are presented for
purposes of additional analysis and are not a required part of the financial statements.
These sections have not been subjected to the auditing procedures applied in the audit
of the financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required By Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 13, 2015, on our consideration of the District’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal
control over financial reporting and compliance.
October 13, 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Years Ended June 30, 2015 And 2014
The annual report of The Metropolitan St. Louis Sewer District (“District”) includes the
independent auditors’ report, management’s discussion and analysis (“MD&A”), and the
financial statements accompanied by notes essential to the user’s understanding of the
financial statements.
Management of the District has provided this MD&A to be used in combination with
the District’s financial statements. This narrative is intended to provide the reader
with more insight into management’s knowledge of the transactions, events, and
conditions reflected in the accompanying financial statements and the fiscal policies
that govern the District’s operations.
2015 Financial Highlights
The District increased capital assets by $128 million as a result of an increase in
construction in process for $108.5 million and capital assets net of depreciation
for $18.7 million.
The District placed $100.1 million of capital assets into service during fiscal year
2015. The continued high level of capitalization reflects the District’s work to
meet long-term plans. Capitalized assets included:
Collection and pumping plant $62.9 million
Treatment and disposal plant and equipment $33.8 million
General plant and equipment $2.4 million
Land $1.0 million
In conjunction with the new assets, accumulated depreciation increased by $65.1
million.
During the year, the District implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions (Employer Reporting) (“GASB 68”). The primary
objective of this Statement is to improve accounting and financial reporting by state and
local governments for pensions, in particular updates to the financial statements
pension-related liabilities and corresponding deferred outflows and inflows and these
effects on net position. Non-current liabilities increased by $43.8 million or 3.9% as the
District implemented GASB 68 resulting in recognizing the District’s net pension
liability. Net deferred outflows and inflows increased $15.8 million or 156.2% primarily
due to the implementation of GASB 68 resulting in various pension-related
transactions.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 5
2014 Financial Highlights
The District increased current, restricted and other assets by $101.2 million as a
result of inflows from bond proceeds and increased receivables from rising sewer
rates.
The District placed $243.9 million of capital assets into service during fiscal year
2014. The continued high level of capitalization reflects the District’s work to
meet long-term plans. Capitalized assets included:
Treatment and disposal plant and equipment $173.5 million
Collection and pumping plant $60.8 million
Land $5.5 million
General plant and equipment $4.1 million
In conjunction with the new assets, accumulated depreciation increased by $59.8
million and construction in progress decreased $60.6 million.
The District issued one new senior bond for $150 million.
Required Financial Statements
The financial statements presented by the management of the District include the
Statements of Net Position; Statements of Revenues, Expenses, and Changes in Net
Position; and Statements of Cash Flows. These statements are prepared using the
accrual basis of accounting. This method of accounting recognizes revenue at the time
it is earned and expenses when the related liability is incurred. As a result of using this
method of accounting, the District’s performance over the time period being reported is
more easily determinable.
The Statements of Net Position provide a report of the District’s current, restricted, and
other non-current assets such as cash, investments, receivables, and property. Also, the
Statements of Net Position provide a summary of the District’s current, restricted, and
non-current liabilities, including contracts and accounts payable, deposits and accrued
expenses, net pension liability, and bonds and notes payable. Deferred outflows and
inflows, where applicable, are also included. The final section of the Statements of Net
Position, the net position section, contains earnings retained for use by the District.
Increases or decreases in the net position section may be indicative of an improving or
declining financial position. These statements provide the basis for computing rate of
return, evaluating the capital structure of the District, and assessing the liquidity and
financial flexibility of the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 6
The Statements of Revenues, Expenses, and Changes in Net Position summarize all of
the year’s revenue and expense. These statements indicate how successful the District
was at maintaining expenses below the level of revenue earned.
The Statements of Cash Flows account for the net change in cash and cash equivalents
by summarizing cash receipts and cash disbursements resulting from operating
activities, non-capital financing activities, capital and related financing activities, and
investing activities. These statements assist the user in determining the sources of
cash coming into the District, the items for which cash was expended, and the
beginning and ending cash balance.
Financial Analysis
The District’s financial position improved in the current year, as evidenced by the
increase in net position of $10.2 million after the effect of GASB 68. The improvement
is due to the increases in unrestricted funds of $17.6 million and restricted funds of $8.5
million. Unrestricted funds increased due to an increase in the change in net position
or positive operating results. This increase was driven primarily by operating revenues
increasing due to rate changes; however, this was offset by recognizing a net pension
impact of $23.6 million. Restricted funds increased due to maintaining higher reserves
in anticipation of increased debt service payments for FY16. These increases were
offset by a decrease in net investment in capital assets of $16.0 million as more debt
was incurred than capital created during 2015.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 7
Condensed Financial Statements and Analysis
2015 Analysis
Current, restricted and other assets decreased $76.0 million or 10.8% in the current
year. The decrease is predominately due to lower amounts of unrestricted and
restricted cash and investments relative to 2014 when the District issued debt. This
was offset slightly as unrestricted receivables increased due to higher sewer rates.
Capital assets net of accumulated depreciation increased by $128.2 million or 4.6% in
the current year as the result of continued high levels of construction and acquisition of
assets by the District.
Current liabilities increased by $14.0 million or 14.7%, due to an increase in the current
portion of bonds and notes payable and deposits and accrued expenses.
Increase Increase
(Decrease) 2013 (Decrease)
2015 2014 2015-2014 As Restated 2014-2013
Assets:
Current, restricted, and other assets 628,246$ 704,266$ (76,020)$ 603,104$ 101,162$
Capital assets (net of accumulated
depreciation)2,891,569 2,763,413 128,156 2,659,806 103,607
Total Assets 3,519,815 3,467,679 52,136 3,262,910 204,769
Deferred Outflow of Resources:
Bonds and Notes Payable-Deferred Loss 9,599 10,108 (509) 10,618 (510)
Pension-related Outflows 19,210 — 19,210 — —
Total Deferred Outflow of Resources 28,809 10,108 18,701 10,618 (510)
Liabilities:
Current liabilities 109,153 95,196 13,957 89,432 5,764
Non-current liabilities 1,158,445 1,114,639 43,806 944,038 170,601
Total Liabilities 1,267,598 1,209,835 57,763 1,033,470 176,365
Deferred Inflow of Resources:
Pension-related Inflows 2,910 — 2,910 — —
Total Deferred Inflow of Resources 2,910 — 2,910 — —
Net Position:
Net investment in capital assets 1,829,394 1,845,394 (16,000) 1,877,692 (32,298)
Restricted 151,292 142,764 8,528 111,066 31,698
Unrestricted 297,430 279,794 17,636 251,300 28,494
Total Net Position 2,278,116$ 2,267,952$ 10,164$ 2,240,058$ 27,894$
Condensed Statements of Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 8
Non-current liabilities increased by $43.8 million or 3.9% as the District implemented
GASB 68 resulting in recognizing the District’s net pension liability.
Net deferred outflows and inflows increased $15.8 million or 156.2% due to the
implementation of GASB 68 resulting in various pension-related transactions.
2014 Analysis
Current, restricted and other assets increased $101.2 million or 16.8% in the current
year. The increase is predominately due to unrestricted and restricted cash and
investments received as part of the issuance of debt in 2014. In addition, unrestricted
receivables increased due to higher sewer rates and a lower allowance for sewer service
charges.
Capital assets net of accumulated depreciation increased by $103.6 million or 3.9% in
the current year as the result of continued high levels of construction and acquisition of
assets by the District.
Current liabilities increased by $5.8 million or 6.4%, as the result of increases for new
debt interest accrual and the accounting change related to accrued interest, as
discussed in the Reclassification section of Footnote 1.
Non-current liabilities increased by $170.6 million or 18.1% as the District issued $150
million in new senior debt with a premium.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 9
Increase Increase
(Decrease) 2013 (Decrease)
2015 2014 2015-2014 As Restated 2014-2013
Operating Revenues:
Sewer service charges 284,367$ 250,133$ 34,234$ 238,635$ 11,498$
Recovery (provision) for doubtful
sewer service charge accounts (2,096) 7,210 (9,306) (2,655) 9,865
Licenses, permits, and other fees 6,657 6,563 94 2,731 3,832
Other 1,460 1,867 (407) 3,235 (1,368)
Total Operating Revenues 290,388 265,773 24,615 241,946 23,827
Non-operating Revenues:
Property taxes levied by the district 24,764 27,450 (2,686) 26,016 1,434
Investment income 3,001 2,967 34 1,057 1,910
Rent and other income 37 302 (265) 293 9
Total Non-operating Revenues 27,802 30,719 (2,917) 27,366 3,353
Total Revenues 318,190 296,492 21,698 269,312 27,180
Operating Expenses:
Pumping and treatment 60,766 54,126 6,640 54,526 (400)
Collection system maintenance 40,162 39,988 174 37,877 2,111
Engineering 10,954 12,184 (1,230) 12,020 164
General and administrative 48,551 45,661 2,890 41,485 4,176
Water backup claims 3,862 2,713 1,149 3,503 (790)
Depreciation 78,641 74,087 4,554 70,030 4,057
Asset management 13,586 12,539 1,047 10,717 1,822
Total Operating Expenses 256,522 241,298 15,224 230,158 11,140
Non-operating Expenses:
Net loss on disposal and sale of
capital assets 1,421 5,248 (3,827) 796 4,452
Non-recurring projects and studies 12,317 3,493 8,824 4,676 (1,183)
Interest expense 27,139 25,661 1,478 21,062 4,599
Total Non-operating Expenses 40,877 34,402 6,475 26,534 7,868
Total Expenses 297,399 275,700 21,699 256,692 19,008
Income Before Capital
Grants And Contributions 20,791 20,792 (1) 12,620 8,172
Capital Grants And Contributions 12,997 7,102 5,895 17,535 (10,433)
Change in Net Position 33,788 27,894 5,894 30,155 (2,261)
Net Position - Beginning of Year 2,267,952 2,240,058 27,894 2,209,903 30,155
Effect of Adoption of GASB 68 (23,624) — (23,624) — —
Net Position - Beginning of Year, As Restated 2,244,328 2,240,058 4,270 2,209,903 30,155
Net Position - End of Year 2,278,116$ 2,267,952$ 10,164$ 2,240,058$ 27,894$
Statements of Revenues, Expenses, and Changes in Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 10
2015 Analysis
Net position increased $10.2 million after the restatement of net position due to GASB
68 or 0.4% over the prior year. Sewer service revenue increased as a result of rate
increases. In Fiscal Year 2014 the methodology for calculating the provision for doubtful
sewer service charges changed which resulted in an adjustment not repeated in Fiscal
Year 2015. Operating expenses also increased primarily from various increases in
operating costs and depreciation. Non-operating expenses also increased due to
expenses related to non-recurring projects and studies.
Total revenue increased by $24.6 million or 9.3%. Sewer service charges increased
$34.2 million or 13.7% with the provision for doubtful accounts increasing by $9.3
million or 129.1% as explained above. Property tax revenue decreased by $2.7 million
or 9.8% due to revenue recorded net of commission fees for collection from the County in
FY15 compared to FY14.
Total expenses increased by $21.7 million or 7.9%.
Operating expenses increased by $15.2 million or 6.3%. This increase is a result of the
following:
• $6.6 million or 12.3% increase in pumping and treatment primarily related to
increase in utility costs resulting from excessive rain. In addition, there was an
increase in chemicals and supplies for the FY15 completion of in-house
disinfection;
• $4.6 million or 6.1% in additional depreciation due to new asset capitalization;
• $2.9 million or 6.3% increase in general and administrative costs resulting from
professional fees associated with the implementation of the new billing system,
and IS professionals and associated costs related to an increase in collection
efforts;
• $1.2 million or 42.4% increase in water backup costs due to overcharged mains
claims resulting from excessive rain in FY15;
Non-operating expenses increased by $6.5 million or 18.8%. This increase is a result of
the following:
• $8.8 million or 252.6% increase in non-recurring projects and studies due
primarily to Green Infrastructure projects;
• $1.5 million or 5.8% increase in interest expense due primarily to the first full
fiscal year for Series 2013B interest payments;
• Offset by a decrease of $3.8 million or 72.9% in net loss on disposal and sale of
capital assets due to an asset demolition in FY14 not repeated in FY15.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 11
2014 Analysis
Net position increased $27.9 million or 1.2% over the prior year. Sewer service revenue
increased as a result of rate increases. The provision for doubtful sewer service charges
decreased due to the District’s use of new analytical tools leading the District to change
its methodology in determining doubtful accounts. Operating expenses also increased
primarily from various increases in operating costs. Interest expense also increased, as
well as the loss on disposal.
Total revenue increased by $27.2 million or 10.1%. Sewer service charges increased
$11.5 million or 4.8% and the provision for doubtful accounts decreased by $9.9 million
or 371.6% as explained above. Licenses, permits and other fees increased $3.8 million
or 140.3% due primarily to an increase in waste haul permits. Investment income
increased $1.9 million or 180.7% due to favorable market conditions. Property tax
revenue increased by $1.4 million or 5.5% due to taxes collected from the prior year.
Other revenue had a decrease of $1.4 million.
Total expenses increased by $19.0 million or 7.4%.
Operating expenses increased by $11.1 million or 4.8%. This increase is a result of the
following:
• $4.2 million or 10.1% increase in general administrative costs due to higher
professional services primarily related to the upgrade in the District’s extensive
billing and collection system. In addition, there were increases in worker’s
compensation and general liability judgments and claims;
• $4.1 million or 5.8% increase in depreciation costs due to new asset
capitalization;
• $2.1 million or 5.6% increase in collection system maintenance costs as a result of
increased personnel costs, as well as inventory. The increase related to inventory
included new process implemented for inventory obsolescence;
• $1.8 million or 17.0% increase in asset management as the capital improvement
fund was increased;
• Offset by a decrease of $0.8 million or 22.6% in water backup due to a reduction
in the claim reserve.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 12
Non-operating expenses increased by $7.9 million or 29.7%. This increase is a result of
the following:
• $4.6 million or 20.4% increase in interest expense due to the issuance of new
senior and subordinate bonds;
• $4.5 million or 559.7% increase in the loss on disposals due to the MO River
Waste Water Treatment Plant expansion that included demolition of some plant
assets resulting in a loss for those demolished assets;
• Offset by a decrease of $1.2 million or 25.3% in non-recurring projects and
studies.
2015 Analysis
The District ended the year with $149.5 million in cash and cash equivalents or a
decrease of $29.5 million from the prior year. Cash flows from operating activities
increased by $34.6 million or 42.2% as a result of increased receipts from customers.
Cash flows from non-capital financing activities decreased by $1.6 million or 6.0% due
to less tax revenue collected. Cash flow from capital and related financing activities
decreased by $200.2 million or 781.9% as the result of decreased bond proceeds and
premiums received in FY15 compared to FY14 and payments for capital assets. Cash
flows from investing activities increased by $140.5 million or 162.4%. The increase
primarily stems from a net inflow of cash related to purchases and proceeds in
investments in FY15, whereas FY14 had a net outflow.
Increase Increase
(Decrease)(Decrease)
2015 2014 2015-2014 2013 2014-2013
Cash flows from operating
activities 116,430$ 81,864$ 34,566$ 84,882$ (3,018)$ Cash flows from non-capital
financing activities 25,824 27,468 (1,644)23,014 4,454
Cash flows from capital
and related financing
activities (225,778) (25,597) (200,181)83,449 (109,046)
Cash flows from investing
activities 53,980 (86,487) 140,467 (168,410) 81,923
Net increase (decrease) in
cash and cash equivalents (29,544) (2,752)(26,792) 22,935 (25,687)
Cash and cash equivalents
at beginning of year 179,003 181,755 (2,752)158,820 22,935
Cash And Cash Equivalents
At End Of Year 149,459$ 179,003$ (29,544)$ 181,755$ (2,752)$
Condensed Statements of Cash Flows
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 13
2014 Analysis
The District ended the year with $179.0 million in cash and cash equivalents or a
decrease of $2.8 million from the prior year. Cash flows from operating activities
decreased by $3.0 million or 3.6% as the result of increased outflows to suppliers for
goods and services. Cash flows from non-capital financing activities increased by $4.5
million or 19.4% due to greater tax revenue collected, mainly from the prior year. Cash
flow from capital and related financing activities decreased by $109.0 million or 130.7%
as the result of decreased bond proceeds and premiums received in 2014 compared to
2013. Cash flows from investing activities increased by $81.9 million or 48.6%. The
increase primarily stems from a decrease in the purchase of investments and an
increase in the volume of maturities of investments.
Capital Assets
2015 Analysis
Total capital assets, net of depreciation, increased by $128.2 million or 4.6% over the
prior year. Construction in progress contained the majority of the increase with net
additions of $108.5 million or 36.2% consisting of $191.5 million in additions offset by
$83.0 million placed into service. Collection and pumping plant increased $21.9 million
or 1.3% with $62.9 million in additions offset by $39.6 million in additional depreciation
and net disposals of $1.4 million. Treatment and disposal plant and equipment
increased a net $1.7 million or 0.2% with $33.8 million in additions offset by $31.6
million in additional depreciation and net disposals of $.5 million. Land increased $1.0
million or 1.8% from the acquisition of easements and other land. General plant and
equipment decreased $5.0 million or 15.3% primarily due to depreciation of existing
assets. For more detailed information, see Note 4, Capital Assets, in the accompanying
notes to the financial statements.
Increase Increase
(Decrease)(Decrease)
2015 2014 2015-2014 2013 2014-2013
Land 56,521$ 55,538$ 983$ 50,077$ 5,461$
Construction in progress 408,464 299,945 108,519 360,508 (60,563)
Treatment and disposal plant
and equipment 739,563 737,833 1,730 599,178 138,655
Collection and pumping plant 1,659,321 1,637,375 21,946 1,614,112 23,263
General plant and equipment 27,700 32,722 (5,022) 35,931 (3,209)
Total 2,891,569$ 2,763,413$ 128,156$ 2,659,806$ 103,607$
Condensed Statements of Capital Assets
(000's)
Net of Depreciation
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 14
2014 Analysis
Total capital assets, net of depreciation, increased by $103.6 million or 3.9% over the
prior year. Treatment and disposal plant and equipment contained the majority of the
increase with a net $138.7 million or 23.1% with $173.6 million in additions offset by
$29.8 million in additional depreciation and net disposals of $5.1 million. Collection
and pumping plant increased $23.3 million or 1.4% with $60.8 million in additions
offset by $37.1 million in additional depreciation and net disposals of $.4 million. Land
increased $5.5 million or 10.9% from the acquisition of thirteen different properties.
General plant and equipment decreased $3.2 million or 8.9% primarily due to
depreciation of existing assets. Construction in progress decreased $60.6 million or
16.8% consisting of $172.1 million in additions offset by $232.7 million placed into
service. For more detailed information, see Note 4, Capital Assets, in the accompanying
notes to the financial statements.
Long-Term Debt
Increase Increase
(Decrease)(Decrease)
2015 2014 2015-2014 2013 2014-2013
Senior Revenue Bonds:
Series 2004A —$ —$ —$ 2,375$ (2,375)$
Series 2006C 60,000 60,000 — 60,000 —
Series 2008A 30,000 30,000 — 30,000 —
Series 2010B 85,000 85,000 — 85,000 —
Series 2011B 47,170 48,925 (1,755) 50,610 (1,685)
Series 2012A 225,000 225,000 — 225,000 —
Series 2012B 139,605 141,730 (2,125) 141,730 —
Series 2013B 150,000 150,000 — — 150,000
Subordinate Revenue Bonds:
Series 2004B 97,520 105,155 (7,635) 108,780 (3,625)
Series 2005A 4,440 4,750 (310) 4,750 —
Series 2006A 29,915 32,085 (2,170) 32,085 —
Series 2006B 10,260 10,945 (685) 10,945 —
Series 2008AB 29,320 31,140 (1,820) 32,040 (900)
Missouri DNR:
Series 2009A 18,564 19,589 (1,025) 20,093 (504)
Series 2010A 6,947 7,299 (352) 7,472 (173)
Series 2010C 31,644 33,224 (1,580) 33,999 (775)
Series 2011A 38,974 39,769 (795) 31,963 7,806
Series 2013A 52,000 16,043 35,957 — 16,043
Energy Loan Program 151 166 (15) 225 (59)
Total 1,056,510$ 1,040,820$ 15,690$ 877,067$ 163,753$
Condensed Statements of Long-Term Debt
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 15
2015 Analysis
The District ended fiscal year 2015 with $1.1 billion in long-term debt outstanding. The
District did not issue any new senior bonds or new State Revolving Fund (“SRF”)
Program bonds in FY15. For more detailed information, see Note 6, Long-Term
Liabilities, in the accompanying notes to the financial statements.
2014 Analysis
The District ended fiscal year 2014 with $1.0 billion in long-term debt outstanding. The
District had one senior revenue bond addition this year, (Series 2013B) for $150.0
million. In addition, the District added a new SRF bond (Series 2013A) for $16.0
million and added $7.8 million to SRF Series 2011A. For more detailed information, see
Note 6, Long-Term Liabilities, in the accompanying notes to the financial statements.
Decisions Impacting the Future
Integral to helping MSD’s rate payers understand the Consent Decree (“CD”) with the
U.S. Environmental Protection Agency and the Missouri Coalition for the Environment,
which settled a lawsuit for alleged violations of the Clean Water Act, was the initiation
of Project Clear. See Note 12, Commitments and Contingencies, for additional
information regarding this litigation. The goal of Project Clear is to help MSD’s rate
payers have a clear understanding of MSD’s goals and objectives. Project Clear consists
of three main components:
• Getting The Rain Out which is focused on reducing the flow into the sewer
system infrastructure to help reduce basement back-ups and overflows;
• Performing Repair and Maintenance to the existing infrastructure to ensure it
operates as well as possible for as long as possible, and
• Building System Improvements where needed to increase the capacity of the
system.
Unlike previous MSD programs, Project Clear will greatly affect the daily lives of many
of our rate payers. Project Clear is needed to help the rate payer understand the
individual and regional, as well as the immediate and long-term, benefits of the
program.
Since February 2004, the voters of St. Louis have authorized the District to issue a total
of $1.7 billion in wastewater revenue bonds. As of June 30, 2015, the District has
issued $1.2 billion of the total authorization. The District’s long-term wastewater
capital improvement and replacement program will continue to be funded through a
combination of additional bonds and wastewater rate increases.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 16
The District is also upgrading its extensive billing and collection system to incorporate
the latest utility technology. The new system will result in more efficient processes and
the ability to continue to expand its customer outreach efforts. The new technology will
provide state of the art capabilities to utilize the multiple ways now available to better
communicate with its customers, understand their needs, and continue to align the
District’s responsiveness accordingly. Full implementation of the system occurred on
September 1, 2015.
Requests For Information
This financial report is designed to provide a general overview of the District’s finances
for all those with an interest in the District’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information
should be addressed or e-mailed to:
Marion M. Gee, Director of Finance
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
mgee@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements. Page 17
STATEMENTS OF NET POSITION
Ended June 30,
Assets 2015 2014
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 73,930,739$ 95,037,786$
Investments 66,540,341 105,100,875
Sewer service charges receivable, less allowance of
$52,847,355 in 2015 and $51,689,211 in 2014 49,975,078 46,563,727
Unbilled sewer service charges receivable, less allowance of
$442,012 in 2015 and $404,638 in 2014 22,169,181 20,231,912
Property taxes receivable, less allowance of
$44,595 in 2015 and $515,097 in 2014 1,413,045 2,136,300
Accrued income on investments 618,436 756,384
Other receivables 1,650,498 1,057,452
Supplies inventory 6,360,539 6,223,099
Total Unrestricted Current Assets 222,657,857 277,107,535
Restricted Current Assets
Cash and cash equivalents 5,096,953 6,086,299
Investments 5,433,350 7,568,587
Total Restricted Current Assets 10,530,303 13,654,886
Total Current Assets 233,188,160 290,762,421
Non-Current Assets
Restricted Assets
Cash and cash equivalents 70,430,852 77,878,696
Investments 63,639,384 181,161,245
Long-term investments 70,493,703 66,104,134
Property taxes receivable, less allowance of
$21,956 in 2015 and $623,994 in 2014 511,835 848,360
Accrued income on investments 308,455 309,140
Total Restricted Non-Current Assets 205,384,229 326,301,575
Other Assets
Notes receivable 13,563,540 14,116,801
Long-term investments 176,110,060 73,085,475
Total other assets 189,673,600 87,202,276
Capital Assets
Depreciable:
Treatment and disposal plant and equipment 1,214,483,762 1,184,278,860
Collection and pumping plant 2,341,025,509 2,286,108,470
General plant and equipment 92,198,891 93,600,648
3,647,708,162 3,563,987,978
Less: Accumulated depreciation 1,221,123,113 1,156,057,471
Net depreciable assets 2,426,585,049 2,407,930,507
Non-depreciable:
Land 56,520,708 55,537,816
Construction in progress 408,463,554 299,944,922
Net capital assets 2,891,569,311 2,763,413,245
Total Non-Current Assets 3,286,627,140 3,176,917,096
Total Assets 3,519,815,300 3,467,679,517
Deferred Outflow of Resources
Bonds and Notes Payable-Deferred Loss on Refunding 9,599,096 10,108,350
Pension-related Outflows 19,210,323 —
Total Deferred Outflow of Resources 28,809,419 10,108,350
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements. Page 18
STATEMENTS OF NET POSITION (Continued)
Ended June 30,
Liabilities 2015 2014
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 34,082,818$ 30,795,756$
Deposits and accrued expenses 37,559,072 33,336,518
Retainage payable 6,952,750 9,566,082
Current portion of bonds and notes payable 29,620,359 20,268,080
Total Current Liabilities-Payable From Unrestricted Assets 108,214,999 93,966,436
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 736,658 1,015,380
Retainage payable 201,441 214,063
Total Current Liabilities-Payable From Restricted Assets 938,099 1,229,443
Total Current Liabilities 109,153,098 95,195,879
Non-Current Liabilities
Deposits and accrued expenses 13,067,791 11,811,608
Net pension liability 39,895,991 —
Bonds and notes payable 1,105,481,067 1,102,827,585
Total Non-Current Liabilities 1,158,444,849 1,114,639,193
Total Liabilities 1,267,597,947 1,209,835,072
Deferred Inflow of Resources
Pension-related Inflows 2,910,142 —
Total Deferred Inflow of Resources 2,910,142 —
Net Position
Net investment in capital assets 1,829,394,892 1,845,394,270
Restricted for:
Debt service 73,177,341 71,843,246
Subdistrict construction and improvement 78,114,762 70,920,910
Unrestricted 297,429,635 279,794,369
Total Net Position 2,278,116,630$ 2,267,952,795$
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements. Page 19
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
2015 2014
Operating Revenues
Sewer service charges 284,366,564$ 250,133,022$
Recovery (provision) of doubtful sewer service charge accounts (2,096,371) 7,210,322
Licenses, permits and other fees 6,656,831 6,562,607
Other 1,459,565 1,866,902
Total Operating Revenues 290,386,589 265,772,853
Operating Expenses
Pumping and treatment 60,765,831 54,125,550
Collection system maintenance 40,160,207 39,987,811
Engineering 10,953,900 12,184,007
General and administrative 48,551,121 45,661,041
Water backup claims 3,862,390 2,713,168
Depreciation 78,641,259 74,087,207
Asset management 13,586,440 12,538,851 Total Operating Expenses 256,521,148 241,297,635
Operating Income 33,865,441 24,475,218
Non-Operating Revenues
Property taxes levied by the District 24,764,324 27,450,319
Investment income 3,000,591 2,966,549
Rent and other income 37,321 302,506
Total Non-Operating Revenues 27,802,236 30,719,374
Non-Operating Expenses
Net loss on disposal and sale of capital assets 1,420,902 5,248,443
Non-recurring projects and studies 12,317,488 3,492,667
Interest expense 27,138,546 25,661,127 Total Non-Operating Expenses 40,876,936 34,402,237
Income Before Capital Grants And Contributions 20,790,741 20,792,355
Capital Grants And Contributions
Utility plant contributed 12,304,126 6,873,732
Grant revenue 692,628 228,748
Total Capital Grants And Contributions 12,996,754 7,102,480
Change In Net Position 33,787,495 27,894,835
Net Position - Beginning Of Year, As Previously Stated 2,267,952,795 2,240,057,960
Effect of Adoption of GASB 68 (23,623,660) —
Net Position - Beginning Of Year, As Restated 2,244,329,135 2,240,057,960
Net Position - End Of Year 2,278,116,630$ 2,267,952,795$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements. Page 20
STATEMENTS OF CASH FLOWS
2015 2014
Cash Flows From Operating Activities
Received from customers 285,114,625$ 251,198,137$
Paid to employees for services (94,150,602) (91,425,385)
Paid to suppliers for goods and services (74,533,975) (77,909,148)
Net Cash Provided By Operating Activities 116,430,048 81,863,604
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 25,824,104 27,468,024
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 692,920 233,450
Proceeds from issuance of debt 35,956,725 173,411,628
Premium on sale of bonds — 9,937,121
Interest received on bond proceeds to be used for capital improvements 291,725 348,476
Principal paid on debt (20,268,080) (10,071,556)
Interest and fees paid on debt (43,213,255) (37,522,184)
Payments for capital assets (201,243,603) (163,882,733)
Proceeds from sale of capital assets 390,173 345,039
Build America bond tax credit 1,614,982 1,603,658 Net Cash Provided By (Used In) Capital And Related
Financing Activities (225,778,413) (25,597,101)
Cash Flows From Investing Activities
Purchase of investments (427,750,008) (627,117,753)
Proceeds from sale and maturity of investments 475,727,441 535,352,043
Investment income 5,965,270 4,976,853
Proceeds from rents 37,321 302,506 Net Cash Provided By (Used In) Investing Activities 53,980,024 (86,486,351)
Net Decrease In Cash And Cash Equivalents (29,544,237) (2,751,824)
Cash And Cash Equivalents At Beginning Of Year 179,002,781 181,754,605
Cash And Cash Equivalents At End Of Year 149,458,544$ 179,002,781$
Non-Cash Capital And Investing Activities
Capital asset additions included in accounts payable 19,226,222$ 18,928,794$
Utility plant contributed by other governments and developers 12,304,126 6,873,732
Fair value investment adjustment gain (loss)249,364 147,773
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements. Page 21
STATEMENTS OF CASH FLOWS (Continued)
2015 2014
Reconciliation Of Operating Income (Loss) To Net Cash Flows
Provided By Operating Activities
Operating Income (Loss) 33,865,441$ 24,475,218$
Adjustments to reconcile operating income (loss) to net cash
provided by operating activities:
Depreciation 78,641,259 74,087,207
Change in operating assets and liabilities:
(Increase) decrease in billed and unbilled sewer service
charges receivable (5,348,620) (15,006,001)
(Increase) decrease in other receivables (593,338) (97,560)
(Increase) decrease in supplies inventory (137,440) 398,793
Increase (decrease) in contracts and accounts payable 4,100,708 (6,122,709)
Increase (decrease) in deposits and accrued expenses 5,929,890 4,128,656
Net increase (decrease) in pension-related liability, inflows & outflows (27,852) —
Net Cash Provided By Operating Activities 116,430,048$ 81,863,604$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 22
NOTES TO THE FINANCIAL STATEMENTS
1. Organization And Summary Of Significant Accounting Policies
Organization
The Metropolitan St. Louis Sewer District (“District”) was authorized by the
voters, established and chartered under the provisions of the Constitution of
Missouri, as a municipal corporation and a political subdivision of the State of
Missouri. Upon creation in 1954, the District assumed responsibilities to provide
for the construction, operation, and maintenance of the sewer facilities within its
defined boundaries. The District’s service area now comprises all of the City of
St. Louis and most of St. Louis County. Subdistricts within the District’s total
service area represent separate geographic areas within which specific taxes are
levied for the retirement of indebtedness issued to finance construction of
sanitary or stormwater facilities within the area or to operate, maintain, or
construct improvements within the subdistrict. The District also maintains all of
the publicly owned stormwater sewers within its original boundaries and is
continuing to accept maintenance of the stormwater sewers in the remainder of
its service area.
Pursuant to provisions of its Charter and subject to limitations imposed by the
Constitution of Missouri, all powers of the District are vested in a six-member
Board of Trustees (“Board”), three of whom are appointed by the Mayor of the
City of St. Louis and three of whom are appointed by the County Executive of
St. Louis County.
Reporting Entity
The District defines its financial reporting entity to include all component units
for which the District’s governing body is financially accountable. To be
considered financially accountable, the component unit must be fiscally
dependent on the District and the District must either 1) be able to impose its
will on the component unit or 2) the relationship must have the potential for
creating a financial benefit or imposing a financial burden on the District.
Based on the foregoing, the District’s financial statements include all funds that
are established under the authority of the District’s charter. There are no
agencies, boards, commissions, or authorities that are controlled by or dependent
on the District.
KEMP COMPANY I, L.L.C.
Notes To Financial Statements (Continued)
See the accompanying notes to financial statements. Page 23
Measurement Focus, Basis Of Accounting And Financial Statement
Presentation
Throughout the year, the District maintains its detailed accounting records on
the modified accrual basis of accounting. In order to account for the transactions
related to certain subdistricts and restricted resources, separate fund accounting
records are maintained. For financial reporting purposes, the District reports its
operations as a single enterprise fund. Accordingly, the accounting records are
converted to the accrual basis of accounting and all interfund transactions are
eliminated. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recognized when the related liability is incurred. The
District’s measurement focus is on the flow of economic resources.
Revenues and expenses are divided into operating and non-operating items.
Operating revenues generally result from providing services in connection with
the District’s principal ongoing operations. The principal operating revenues of
the District are user fees, licenses, and permits for wastewater treatment
services. Operating expenses include the costs associated with the conveyance
and treatment of wastewater, stormwater, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting these
definitions are reported as non-operating revenues and expenses.
The District follows GASB Statement No. 33, Accounting and Financial
Reporting for Nonexchange Transactions (“GASB 33”), which establishes
accounting and financial reporting standards for nonexchange transactions
involving financial or capital resources.
GASB 33 groups nonexchange transactions into the following four classes, based
upon their principal characteristics: derived tax revenues, imposed nonexchange
revenues, government-mandated nonexchange transactions, and voluntary
nonexchange transactions.
The District recognizes assets from imposed nonexchange revenue transactions in
the period when an enforceable legal claim to the assets arises or when the
resources are received, whichever occurs first. Revenues are recognized in the
period when the resources are required to be used for the first period that use is
permitted. The District recognizes revenues from property taxes, net of estimated
refunds and estimated uncollectible amounts, in the period for which the taxes are
levied. Imposed nonexchange revenues also include licenses, permits, and other
fees.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 24
Intergovernmental revenues, representing grants and assistance received from
other governmental units, are generally recognized as revenues in the period
when all eligibility requirements, as defined by GASB 33, have been met. Any
resources received where all requirements are met with the exception of the time
requirement are recorded as deferred outflows. All other resources received
before any other eligibility requirements are met are reported as unearned
revenues.
When both restricted and unrestricted resources are available for use, it is the
District’s policy to use restricted resources first, and then unrestricted resources
as they are needed.
Cash And Cash Equivalents
The District considers all highly liquid investments that are immediately
available to the District to be cash equivalents.
Investments
The District accounts for its investments at fair value. Fair value is determined
using quoted market prices. Changes in unrealized gain (loss) on the carrying
value of investments are reported as a component of investment income in the
Statements of Revenues, Expenses and Changes in Net Position.
Restricted Cash, Cash Equivalents And Investments
Cash, cash equivalents and investments that are externally restricted are
classified as restricted assets. These assets are used to make debt service
payments, maintain sinking or reserve funds, purchase or construct capital or
other non-current assets or for other restricted purposes.
Adoption Of New Accounting Standards
During the year, the District implemented GASB Statement No. 68, Accounting
and Financial Reporting for Pensions (Employer Reporting) (“GASB 68”). This
Statement replaces the requirements of Statement No. 27, Accounting for
Pensions by State and Local Governmental Employers, as well as the
requirements of Statement No. 50, Pension Disclosures. The primary objective of
this Statement is to improve accounting and financial reporting by state and local
governments for pensions, in particular bringing to the financial statements
pension-related liabilities and corresponding deferred outflows and inflows and
these effects on net position. In addition, the District implemented GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date in fiscal year 2015. This statement establishes accounting
requirements related to certain pension contributions made by employers.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 25
The District’s adoption of GASB 68 in fiscal year 2015 resulted in restating the
beginning balance of net position due to the recognition of a beginning net
pension liability net of any deferred outflows of resources. The impact of this
change on the District’s Statement of Net Position is as follows:
July 1, July 1,
2014 2013
Net Position - Beginning Of Year,
As Previously Stated 2,267,952,795$ 2,240,057,960$
Effect of Adoption of GASB 68:
establishing a beginning net pension liability (23,623,660) —
Net Position - Beginning Of Year, As Restated 2,244,329,135$ 2,240,057,960$
Restatement consists of:
Net pension liability reported as a noncurrent liability
at July 1, 2014 (29,409,433)$
Contributions made subsequent to the beginning net
pension liability's measurement date of December 31,
2013 are reported as deferred outflows of resources 5,785,773
(23,623,660)$
Accounts Receivable
Accounts receivable is composed primarily of charges to customers for
wastewater and stormwater services. Receivables are reported at their gross
values net of an allowance for uncollectible amounts. Unbilled sewer service
charge revenues are accrued by the District based on estimated billings for
services provided through the end of the current fiscal year.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 26
Capital Assets
Capital assets are valued at historical cost or estimated historical cost based in
part upon a study performed in 1981. Donated capital assets are recorded at fair
value at the time the asset is considered operational. Interest cost is capitalized
as part of the historical cost of acquiring certain assets when the effect of such
capitalization is material to the financial statements. Interest is not capitalized
on assets constructed with contributions from other governmental sources.
Depreciation is calculated on a straight-line basis over the following estimated
useful lives:
Treatment and disposal plant and
equipment 16 to 100 years
Collection and pumping plant 20 to 100 years
General plant and equipment 3 to 10 years
When developing user charge rates, the District includes funding for replacement
cost of assets, which may differ from depreciation expense recorded for financial
reporting purposes.
Normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Betterments are capitalized
and depreciated over the remaining useful lives of the related assets, as
applicable. Previously, the District defined capital assets as assets with an
initial, individual cost of more than $1,000 and an estimated useful life in excess
of three years. In April of 2010 the District updated this policy and as a result,
an asset must now have an individual cost of more than $5,000 to be considered a
capital asset. This change in policy does not have a retroactive effect on capital
assets put in place before April 2010.
Capitalization Of Interest
Interest costs are capitalized as part of the costs of capital assets during the
period of construction based on the related weighted average net borrowing costs
incurred. Interest earned on temporary investments acquired with the proceeds
of such borrowed funds from the date of the borrowing until the assets are ready
for their intended use is used to reduce the interest costs capitalized on the
constructed assets. Interest is not capitalized for outlays financed by capital
grants (or other outside parties) externally restricted for the acquisition of
specified assets. In 2015 and 2014, the District capitalized $11,502,639 and
$10,838,482, respectively, of net interest expense.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 27
Supplies Inventory
Supplies inventory consists of parts and supplies to be used to operate and
maintain treatment facilities and various treatment-related equipment at the
District. This inventory figure is netted against those materials and supplies
deemed to be obsolete. All inventory is stated at cost and expenses are
recognized when the inventory is consumed.
Net Position
The District’s net position is calculated as follows: the net investment in capital
assets component of net position consists of capital assets, including restricted
capital assets, net of accumulated depreciation and reduced by the net
outstanding debt that is attributable to the acquisition, construction, or
improvement of those assets.
The restricted component of net position consists of assets and liabilities
regulated by external constraints imposed by creditors, grantors, contributors,
laws, or regulations of other governments or constraints imposed by law through
constitutional provisions or enabling legislation. Property taxes levied by the
various subdistricts and other revenues received for construction in those sub-
districts have also been restricted for that use. Sewer extension and connection
fees, grants, and other revenues received for construction within certain sub-
districts have been restricted for that use. In addition, a portion of sanitary
sewer charges have been restricted for the payment of principal and interest on
certain debt of the District.
The unrestricted net position component of net position consists of net position
that does not meet the definition of restricted or net investment in capital assets.
The District first applies restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net position is available.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 28
Deferred Outflow Of Resources And Deferred Inflow Of Resources
In addition to assets, financial statements may report a separate section for
deferred outflow of resources. Deferred outflow of resources consists of the
consumption of net position that is applicable to a future reporting period and so
will not be recognized as an outflow of resources until then. Deferred outflow of
resources related to refunding long-term debt is reported in the statement of net
position. A deferred bond refunding amount results from the difference in the
carrying value of refunded debt and its reacquisition price, and is amortized over
the shorter of the life of the refunded or refunding debt. The pension related
items represent contributions made to the plan between the measurement date of
the pension obligations and the end of the fiscal year as well as certain actuarial
differences and changes that are amortized over future periods.
In addition to liabilities, financial statements may report a separate section for
deferred inflow of resources. Deferred inflow of resources consists of the
acquisition of net position that is applicable to a future reporting period and so
will not be recognized as inflow of resources until then. Deferred inflow of
resources related to receivables, when the corresponding revenues are
unavailable, is reported in the governmental funds balance sheets. Deferred
inflows of resources include federal reimbursements, cost reimbursements and
other miscellaneous receivables and relate to certain changes in pension
obligations that are amortized over future periods.
Capital Contributions
Capital contributions to the District represent government grants and other aid
used to fund capital projects. In accordance with GASB 33, capital contributions
are recognized as revenue when the expenditure is made and the amount
becomes subject to claim for reimbursement.
Bond Premiums, Discounts And Issuance Costs
In the District’s financial statements, bond premiums and discounts are
amortized over the life of the bonds using the effective interest method. Bond
issuance costs are expensed when incurred. Bonds and notes payable are
reported net of the applicable bond premium or discount.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 29
Compensated Absences
Vacation
Under the terms of the District’s personnel policies, employees are allowed to
carry a maximum of 30 to 45 days of vacation (depending on length of service)
from one calendar year to the next. Since vacation accrued at year-end is
expected to be used by the employee during the following fiscal year, the accrual
is reported as a component of current deposits and accrued expenses payable.
Sick Leave
Employees earn sick pay benefits at accrual rates ranging from 10 days per year
to 12 days per year (depending on length of service). Unused sick leave can be
carried over at year-end without limitation. An employee retiring from the
District with five or more years of service will be compensated for any unused
accrued sick leave at the rate of 1.25% for each year of District service multiplied
by the unused accrued sick leave remaining at the employee’s current rate of pay.
The District has recorded a liability which has been actuarially determined to be
equal to the accumulated expense charge that will amortize the employees’
benefits over their period of District service. The liability, included in current
deposits and accrued expenses payable, includes vested accumulated rights to
receive sick leave benefits estimated to be paid within one year. The portion of
sick leave expected to be paid after one year is recorded as a component of non-
current deposits and accrued expenses payable.
Pensions
For purposes of measuring the net pension liability, deferred outflows of
resources and deferred inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of The Metropolitan
St. Louis Sewer District’s Employee Pension Plan (the Plan) and additions
to/deductions from the Plan’s fiduciary net position have been determined on the
same basis as they are reported by the Plan. For this purpose, benefit payments
are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Use Of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts in the financial statements. Actual
results could differ from those estimates.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 30
2. Deposits And Investments
Deposits
At June 30, 2015 the reported amount of the District’s deposits was $42,838,260
and the bank balance was $50,312,948. Of the bank balance, $762,049 was
covered by federal depository insurance; $49,550,899 was collateralized with
securities held by a third party financial institution in the District’s name. In
addition, the District has money market mutual funds of $13,971,481 held in a
trusted escrow account for the State that will be used to make future bond
payments.
At June 30, 2014 the reported amount of the District’s deposits was $46,969,658
and the bank balance was $50,725,661. Of the bank balance, $537,812 was
covered by federal depository insurance; $50,187,849 was collateralized with
securities held by a third party financial institution in the District’s name. In
addition, the District had money market mutual funds of $12,030,165 held in a
trusted escrow account for the State that will be used to make future bond
payments.
Custodial credit risk for deposits is the risk that, in the event of bank failure, the
District’s deposits may not be returned to the District. The District’s investment
policy complies with the provisions of state laws and requires collateralization on
repurchase agreements, time certificates of deposit and deposits with banking
institutions with a market value of 103%.
Deposits in each bank are insured by the Federal Deposit Insurance Corporation
(“FDIC”) in the amount of $250,000 for interest bearing accounts and noninterest
bearing accounts.
Investments
With the approval of the District’s Board of Trustees, the Secretary-Treasurer is
authorized to invest excess cash in any investment authorized by the District’s
Charter. The District’s investment policy conforms to the investment policy
guidelines for the State of Missouri. The District’s investment policy authorizes
the District to invest in the following instruments: U.S. Treasury obligations,
certificates of deposit, obligations of any agency or instrumentality of the U.S.,
repurchase agreements, bankers’ acceptances, and commercial paper, all
according to terms specified in the policy. The District also has investments in
money market mutual funds that hold securities approved by the District’s
investment policy. At June 30, 2015 and 2014, all of the District’s investments
were in compliance with the District’s investment policy and charter.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 31
A summary of deposits and investments as of June 30, 2015 and 2014 is as
follows:
Reconciliation to the financial statements:
Investment Type Cost Fair Value Cost Fair Value
Deposits 42,838,260$ 42,838,260$ 46,969,658$ 46,969,658$
Money market mutual funds 13,971,481 13,971,481 12,030,165 12,030,165
Certificates of deposit 100,000 100,000 100,000 100,000
U.S. Treasury and agency
obligations 404,229,430 402,931,741 456,905,358 455,362,626
Commercial paper 71,781,633 71,833,900 97,513,315 97,560,650
Total 532,920,804$ 531,675,382$ 613,518,495$ 612,023,098$
2015 2014
2015 2014
Cash and Cash Equivalents
Unrestricted current 73,930,739$ 95,037,786$
Restricted current 5,096,953 6,086,299
Restricted non-current 70,430,852 77,878,696
Investments
Unrestricted current 66,540,341 105,100,875
Restricted current 5,433,350 7,568,587
Restricted non-current 63,639,384 181,161,246
Long-term Investments
Restricted non-current 70,493,703 66,104,134
Other 176,110,060 73,085,475
531,675,382$ 612,023,098$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 32
Interest Rate Risk
As of June 30, 2015 and 2014, the District had the following investments and
maturities:
In accordance with the District’s investment policy, the District will minimize the
risk that the fair value of debt securities in the portfolio will fall due to increases
in general interest rates by:
1. Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity.
2. Investing operating funds primarily in short-term securities.
3. State law limits the maximum stated maturities to five years on any
investment from the date of purchase.
Long-Term Investments
While the majority of the District’s portfolio is made up of short-term
investments, the District also categorizes a sizeable amount as long-term under
the categories discussed in Note 1, Organization and Summary of Significant
Accounting Policies. The District is allowed to purchase long-term callable
securities. These callable securities give the issuer the right to redeem at
predetermined prices at a specific time prior to maturity. When a security is
called, the District reflects an immediate reclass from long-term investment to
cash.
Weighted Weighted
Average Average
Maturity Maturity
Investment Type Fair Value (Years) Fair Value (Years)
Money market mutual funds 13,971,481$ 0.00 12,030,165$ 0.00
Certificates of deposit 100,000 1.72 100,000 2.72
U.S. Treasury obligations 287,004,218 1.30 285,468,272 1.33
U.S. agency obligations 115,927,523 1.38 169,894,354 1.40
Commercial paper 71,833,900 0.19 97,560,650 0.24
Total 488,837,122$ 1.15 565,053,441$ 0.96
20142015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 33
Custodial/Credit Risk
The District will minimize credit risk for investments, the risk of loss due to
failure of the security issuer or backer, by:
1. Prequalifying the financial institutions, broker/dealers, intermediaries,
and advisors with which the District will do business.
2. Diversifying the portfolio so that potential losses on individual securities
will be minimized.
In accordance with its investment policy, the District limits its investments in
these investment types to the top rating issued by Nationally Recognized
Statistical Rating Organizations. As of June 30, 2015 and 2014, the District’s
investments in commercial paper were rated A-1 by Standard & Poor’s (“S&P”)
and P-1 by Moody’s Investors Service (“Moody’s”). The District’s investments in
U.S. agency obligations that do not carry the explicit guarantee of the U.S.
Government all carry a rating assigned by S&P of “AA+” besides one short-term
U.S. agency obligation that carried a rating of “A-1”+, with a value of $11,099,030
in FY14. Money market investments are rated as AAAm and Aaa-mf by S&P and
Moody’s, respectively.
Concentration Of Credit Risk
The District’s investment policy places no limit on the amount the District may
invest in any one issuer with respect to U.S. Treasury obligations and
collateralized time and demand deposits. U.S. agency obligations and
government-sponsored enterprises are limited to 60% of the portfolio, with no
more than 30% of the total portfolio invested in securities of any one agency; and
collateralized repurchase agreements are limited to 50% of the portfolio. U.S.
agency callable securities are limited to 30% of the portfolio, and commercial
paper and bankers’ acceptances are limited to 25% each, with no more than 5% of
the total portfolio invested in any one issuer. The following table lists
investments in issuers that represent 5% or more of total investments at June 30,
2015 and 2014:
Issuer 2015 2014
Treasury Notes 58.8 50.7
Federal Home Loan Bank 9.3 6.1
Federal National Mortgage Association 3.6 10.1
Federal Home Loan Mortgage Corporation 11.0 9.7
Percent Of
Total Investments
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 34
3. Note Receivable
The District has a note receivable with the City of Arnold, Missouri (“City”) for its
portion of the capital costs related to the Lower Meramec Wastewater Treatment
Plant. The original loan bears interest at 4.35%, while the two new loans added
during the 2013 fiscal year bear interest at 4.50% and 3.52%. The current
portion of this note is contained in the other receivables line on the Statements of
Net Position. The note receivable will mature in fiscal year 2033. At June 30,
2015, future payments are as follows:
On July 16, 2015 the City of Arnold sold its sewer system to Missouri American
Water Company (“MOAM”). As part of the sales agreement, MOAM agreed to
pay the quarterly loan payments starting with the payment due June 30, 2015.
This quarterly payment was paid by MOAM on July 9, 2015.
2016 1,443,370$
2017 1,154,696
2018 1,154,696
2019 1,154,696
2020 1,154,696
2021-2025 5,773,479
2026-2030 5,773,479
2031-2033 2,873,190
20,482,302
Less: Amount representing interest 6,230,860
14,251,442$
Classification in Statement of Net Position:
Current 687,901$
Non-current 13,563,541
Total 14,251,442$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 35
4. Capital Assets
The following is a summary of capital assets changes for the fiscal years ended
June 30, 2015 and 2014:
Balance Balance
June 30, 2014 June 30, 2015
Capital assets not being depreciated:
Land 55,537,816$ 982,892$ —$ 56,520,708$
Construction in progress 299,944,922 191,548,710 83,030,078 408,463,554
Total capital assets not being depreciated 355,482,738 192,531,602 83,030,078 464,984,262
Capital assets being depreciated:
Treatment and disposal plant
and equipment 1,184,278,860 33,797,176 3,592,274 1,214,483,762$
Collection and pumping plant 2,286,108,470 62,947,593 8,030,554 2,341,025,509
General plant and equipment 93,600,648 2,365,107 3,766,864 92,198,891
Total capital assets being depreciated 3,563,987,978 99,109,876 15,389,692 3,647,708,162
Less: Accumulated depreciation:
Treatment and disposal plant
and equipment (446,446,188) (31,634,323) (3,159,807) (474,920,704)$
Collection and pumping plant (648,732,430) (39,645,122) (6,673,636) (681,703,916)
General plant and equipment (60,878,853) (7,361,814) (3,742,174) (64,498,493)
Total accumulated depreciation (1,156,057,471) (78,641,259) (13,575,617) (1,221,123,113)
Total capital assets being depreciated, net 2,407,930,507 20,468,617 1,814,075 2,426,585,049
Total Capital Assets 2,763,413,245$ 213,000,219$ 84,844,153$ 2,891,569,311$
Balance Balance
June 30, 2013 June 30, 2014
Capital assets not being depreciated:
Land 50,076,644$ 5,461,172$ —$ 55,537,816$
Construction in progress 360,507,521 172,185,110 232,747,709 299,944,922
Total capital assets not being depreciated 410,584,165 177,646,282 232,747,709 355,482,738
Capital assets being depreciated:
Treatment and disposal plant
and equipment 1,027,055,525 173,558,583 16,335,248 1,184,278,860
Collection and pumping plant 2,226,256,235 60,764,222 911,987 2,286,108,470
General plant and equipment 92,176,648 4,066,119 2,642,119 93,600,648
Total capital assets being depreciated 3,345,488,408 238,388,924 19,889,354 3,563,987,978
Less: Accumulated depreciation:
Treatment and disposal plant
and equipment (427,877,724) (29,816,528) (11,248,064) (446,446,188)
Collection and pumping plant (612,142,650) (37,117,725) (527,945) (648,732,430)
General plant and equipment (56,245,762) (7,152,954) (2,519,863) (60,878,853)
Total accumulated depreciation (1,096,266,136) (74,087,207) (14,295,872) (1,156,057,471)
Total capital assets being depreciated, net 2,249,222,272 164,301,717 5,593,482 2,407,930,507
Total Capital Assets 2,659,806,437$ 341,947,999$ 238,341,191$ 2,763,413,245$
Additions Deletions
Additions Deletions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 36
5. Property Tax
On or before October 1 of each year, the District levies ad valorem taxes on all
taxable tangible property, real and personal, within its boundaries based on
assessed valuations established by the City of St. Louis and St. Louis County
Assessors. Tax rates vary by sub-district and purpose. Taxes levied are used for
operations and stormwater maintenance, debt service, and construction. Taxes
are recorded as non-operating revenues. Property tax bills are typically mailed
in October. They become delinquent and represent a lien on the related property
if not paid by December 31. All property taxes are billed and collected by the
City of St. Louis and St. Louis County Collectors’ of Revenue and are remitted to
the District monthly.
In fiscal years 2015 and 2014, the District recorded revenue from property taxes
in the amount of $24,764,324 and $27,450,319, respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 37
6. Long-Term Liabilities
The following is a summary of changes in the District’s long-term liabilities for
the year ended June 30, 2015:
Original Balance Balance
Issuance June 30,June 30,Current
Amounts 2014 Additions Retirements 2015 Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds:
Series 2006C 60,000,000$ 60,000,000$ —$ —$ 60,000,000$ —$
Series 2008A 30,000,000 30,000,000 — — 30,000,000 —
Series 2010B 85,000,000 85,000,000 — — 85,000,000 —
Series 2011B 52,250,000 48,925,000 — 1,755,000 47,170,000 1,845,000
Series 2012A 225,000,000 225,000,000 — — 225,000,000 5,000,000
Series 2012B 141,730,000 141,730,000 — 2,125,000 139,605,000 2,325,000
Series 2013B 150,000,000 150,000,000 — — 150,000,000 1,000,000
Water Pollution Control and Drinking Water Subordinate Revenue Bonds (State Revolving Funds Program):
Series 2004B 161,280,000 105,155,000 — 7,635,000 97,520,000 7,870,000
Series 2005A 6,800,000 4,750,000 — 310,000 4,440,000 315,000
Series 2006A 42,715,000 32,085,000 — 2,170,000 29,915,000 1,965,000
Series 2006B 14,205,000 10,945,000 — 685,000 10,260,000 695,000
Series 2008A/B 40,000,000 31,140,000 — 1,820,000 29,320,000 1,845,000
Missouri Department of Natural Resources:
Energy Loan Program — — — — — —
Energy Loan Program 223,793 166,445 — 15,880 150,565 32,359
Series 2009A 23,000,000 19,589,300 — 1,025,700 18,563,600 1,049,400
Series 2010A 7,980,700 7,298,500 — 351,500 6,947,000 358,600
Series 2010C 37,000,000 33,224,000 — 1,580,000 31,644,000 1,620,000
Series 2011A 39,769,300 39,769,300 — 795,000 38,974,300 1,620,000
Series 2013A 52,000,000 16,043,275 35,956,725 — 52,000,000 2,080,000
1,168,953,793$ 1,040,820,820$ 35,956,725$ 20,268,080$ 1,056,509,465 29,620,359$
Add:
Unamortized premium, net 78,591,961
Total Bonds and Notes Payable 1,135,101,426$
Net Pension Liability —$ 39,895,991$ —$ 39,895,991$ —$
Deposits and Accrued Expenses
Landfill closure and
post-closure costs 756,936$ 26,537$ —$ 783,473$ —$
Compensated absences 7,983,223 856,080 418,275 8,421,028 2,105,257
Net OPEB obligation 5,067,254 2,474,689 1,573,400 5,968,543 —
Total Deposits and Accrued Expenses 13,807,413$ 3,357,306$ 1,991,675$ 15,173,044$ 2,105,257$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 38
The following is a summary of changes in the District’s long-term liabilities for
the year ended June 30, 2014:
Wastewater System Revenue Bonds Payable
In February 2004, the District received voter authorization for $500,000,000 of
revenue bonds. In August 2008, the District received voter authorization for an
additional $275,000,000 of revenue bonds. In June 2012, the District received
voter authorization for another $945,000,000 of revenue bonds. From the total
voter authorization of $1,720,000,000, $518,000,000 has not been issued as of
June 30, 2015. These funds were sought to enable the District to comply with
federal and state clean water requirements.
Original Balance Balance
Issuance June 30,June 30, Current
Amounts 2013 Additions Retirements 2014 Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds:
Series 2004A 175,000,000$ 2,375,000$ —$ 2,375,000$ —$ —$
Series 2006C 60,000,000 60,000,000 — — 60,000,000 —
Series 2008A 30,000,000 30,000,000 — — 30,000,000 —
Series 2010B 85,000,000 85,000,000 — — 85,000,000 —
Series 2011B 52,250,000 50,610,000 — 1,685,000 48,925,000 1,755,000
Series 2012A 225,000,000 225,000,000 — — 225,000,000 —
Series 2012B 141,730,000 141,730,000 — — 141,730,000 —
Series 2013B 150,000,000 — 150,000,000 — 150,000,000 2,125,000
Water Pollution Control and Drinking Water Subordinate Revenue Bonds (State Revolving Funds Program):
Series 2004B 161,280,000 108,780,000 3,625,000 7,250,000 105,155,000 7,635,000
Series 2005A 6,800,000 4,750,000 305,000 305,000 4,750,000 310,000
Series 2006A 42,715,000 32,085,000 2,140,000 2,140,000 32,085,000 2,170,000
Series 2006B 14,205,000 10,945,000 675,000 675,000 10,945,000 685,000
Series 2008A/B 40,000,000 32,040,000 900,000 1,800,000 31,140,000 1,820,000
Missouri Department of Natural Resources:
Energy Loan Program 98,595 1,312 — 1,312 — —
Energy Loan Program 223,793 223,793 — 57,348 166,445 15,880
Series 2009A 23,000,000 20,093,400 498,400 1,002,500 19,589,300 1,025,700
Series 2010A 7,980,700 7,471,600 171,400 344,500 7,298,500 351,500
Series 2010C 37,000,000 33,999,000 765,000 1,540,000 33,224,000 1,580,000
Series 2011A 39,769,300 31,962,553 7,806,747 — 39,769,300 795,000
Series 2013A 52,000,000 — 16,043,275 — 16,043,275 —
1,344,052,388$ 877,066,658$ 182,929,822$ 19,175,660$ 1,040,820,820 20,268,080$
Add:
Unamortized premium, net 82,274,845
Total Bonds and Notes Payable 1,123,095,665$
Deposits and accrued
expenses:
Landfill closure and
postclosure costs 735,800$ 21,136$ —$ 756,936$ —$
Compensated absences 7,524,797 873,144 414,718 7,983,223 1,995,805
Net OPEB obligation 4,018,709 2,442,145 1,393,600 5,067,254 —
Total Deposits and Accrued Expenses 12,279,306$ 3,336,425$ 1,808,318$ 13,807,413$ 1,995,805$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 39
In December 2013, the District issued $150,000,000 of Wastewater System
Revenue Bonds Series 2013B (“Series 2013B”). These bonds were issued
pursuant to the June 2012 authorization; in this case for the purpose of
constructing, repairing, replacing, and equipping new and existing District
wastewater facilities. These senior bonds have interest rates ranging from 2.0%
to 5.0% and are payable in semiannual installments at varying amounts through
May 1, 2043.
In November 2012, the District issued $141,730,000 of Wastewater System
Refunding Bonds Series 2012B (“Series 2012B”). These bonds were issued to
advance refund the Series 2004A Bonds maturing in fiscal years 2015 and
thereafter. These 2012B senior bonds have interest rates ranging from 1.3% to
5.0% and are payable in semiannual installments at varying amounts through
May 1, 2034. The Series 2012B’s net proceeds of $169,991,297 (including a
premium of $29,613,138 and after payments of $761,593 in underwriting fees and
$590,247 in issuance costs) were used to purchase U.S. government securities.
These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the bonds. As a result, Series
2004A bonds were partially defeased and the liability for those bonds related to a
date after May 1, 2014 were removed from the financial statements. This
refunding decreased total debt service payments over the next 22 years by
$28,601,189, resulting in an economic gain (difference between the present values
of the debt service payments on the old and new debt) of $22,439,375.
In August 2012, the District issued $225,000,000 of Wastewater System Revenue
Bonds Series 2012A (“Series 2012A”). These bonds were issued pursuant to the
June 2012 authorization: in this case for the purpose of constructing, repairing,
replacing, and equipping new and existing District wastewater facilities. These
senior bonds have interest rates ranging from 2.5% to 5.3% and are payable in
semiannual installments at varying amounts through May 1, 2042.
In December 2011, the District issued $52,250,000 of Wastewater System
Revenue Bonds Series 2011B (“Series 2011B”). These bonds were issued
pursuant to the August 2008 authorization; in this case for the purpose of
constructing, repairing, replacing, and equipping new and existing District
wastewater facilities. These senior bonds have interest rates ranging from 3.0%
to 5.0% and are payable in semiannual installments at varying amounts through
May 1, 2032.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 40
In January 2010, the District issued $85,000,000 of Taxable Wastewater System
Revenue Bonds (Build America Bonds – Direct Pay) Series 2010B (“Series
2010B”). These bonds were issued pursuant to the August 2008 authorization; in
this case for the purpose of constructing, repairing, replacing, and equipping new
and existing District wastewater facilities. These senior bonds have an interest
rate of 5.9% and are payable in semiannual installments at varying amounts
through May 1, 2039. As Build America Bonds under The American Recovery
and Reinvestment Act (“ARRA”) of 2009, the District receives a subsidy payment
from the Federal government equal to a percentage of the interest paid. In fiscal
year 2013, the rate was 35%. On August 6, 2013, the District was notified that
the subsidy percentage would be reduced to 32% for the 2013 fall payment and
would be reduced to 32.5% after that.
In November 2008, the District issued $30,000,000 of Wastewater System
Revenue Bonds Series 2008A (“Series 2008A”) from the August 2008
authorization for the purpose of providing funds to finance the capital
improvement and replacement program. These senior bonds have interest rates
ranging from 5.1% to 5.3% and are payable in semiannual installments at
varying amounts through May 1, 2038.
In November 2006, the District authorized and issued $60,000,000 of Wastewater
System Revenue Bonds Series 2006C (“Series 2006C”) from the February 2004
authorization for the purpose of providing funds to finance the initial phase of its
capital improvement and replacement program, including constructing,
repairing, and replacing new wastewater facilities. These senior bonds have
interest rates ranging from 4.1% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2036.
In May 2004, the District authorized and issued $175,000,000 of Wastewater
System Revenue Bonds Series 2004A (“Series 2004A”) from the February 2004
authorization for the purpose of providing funds to finance the initial phase of its
capital improvement and replacement program, including constructing,
repairing, and replacing new wastewater facilities. These senior bonds had
interest rates ranging from 2.0% to 5.0% and were payable in semiannual
installments at varying amounts through May 1, 2034; however, in November
2012, there was a partial refunding of the Series 2004A bonds. As a result of this
refunding, Series 2004A bonds were considered to be partially defeased and the
semiannual installments were through May 1, 2014. The liability related to
Series 2004A after May 1, 2014 has been paid. See the explanation for Series
2012B above for further information.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 41
The revenue bonds do not constitute a legal debt or liability for the District, the
State of Missouri, or for any political subdivision thereof and do not constitute
indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction. Revenue derived from the operations of the Wastewater
System is pledged for the retirement of the outstanding Wastewater System
Revenue Bonds listed above. Under the provisions of the bond indentures, the
District covenants to establish rates for the services of the Wastewater System
sufficient to fund operations, maintain reserves, and provide revenues to apply
principal and interest on these bonds.
The issuance of the revenue bonds does not obligate the District to levy any form
of taxation or to make any appropriation for their payments in any fiscal year.
The principal and interest on the bonds are expected to be paid from future
wastewater revenues. The scheduled payment of the principal of and interest on
the outstanding Series 2006C and previously the 2004A Bonds are guaranteed
under a financial guaranty insurance policy.
Water Pollution Control And Drinking Water Revenue Bonds Payable
In October 2008, the State Environmental Improvement and Energy Resources
Authority (the Authority) authorized and issued $69,435,000 of Water Pollution
Control and Drinking Water Revenue Bonds (State Revolving Funds Programs)
Series 2008A/B (“Series 2008A/B”). The Series 2008A/B bonds provided funds to
issue loans to 14 Missouri political subdivisions that used the funds to finance
water pollution control and drinking water projects. A portion of the proceeds of
the Series 2008A/B bonds issued by the Authority were used to purchase
subordinate Participant Revenue Bonds (“Participant Bonds”) authorized and
issued by the District in the aggregate principal amount of $40,000,000, the
proceeds of which were used for constructing, repairing, and equipping new and
existing wastewater facilities. The District’s Participant Bonds have interest
rates ranging from 4.0% to 5.7% and are payable in semiannual installments at
varying amounts through January 1, 2029.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 42
In November 2006, the Authority authorized and issued $22,105,000 of State
Revolving Funds Programs Series 2006B (“Series 2006B”). The Series 2006B
bonds provided funds to issue loans to 7 Missouri political subdivisions that used
the funds to finance water pollution control and drinking water projects. A
portion of the proceeds of the Series 2006B bonds issued by the Authority were
used to purchase Participant Bonds authorized and issued by the District in the
aggregate principal amount of $14,205,000, the proceeds of which were used for
constructing, repairing, and equipping new and existing wastewater facilities.
The District’s Participant Bonds have interest rates ranging from 4.0% to 5.0%
and are payable in semiannual installments at varying amounts through July 1,
2027.
In May 2006, the Authority authorized and issued $87,505,000 of State Revolving
Funds Programs Series 2006A (“Series 2006A”). The Series 2006A bonds
provided funds to issue loans to 13 Missouri political subdivisions that used the
funds to finance water pollution control and drinking water projects. A portion of
the proceeds of the Series 2006A bonds issued by the Authority were used to
purchase subordinate Participant Bonds authorized and issued by the District in
the aggregate principal amount of $42,715,000, the proceeds of which were used
for constructing, repairing, and equipping new and existing wastewater facilities.
The District’s Participant Bonds have interest rates ranging from 3.5% to 4.5%
and are payable in semiannual installments at varying amounts through July 1,
2026.
In May 2005, the Authority authorized and issued $53,060,000 of State Revolving
Funds Programs Series 2005A (“Series 2005A”). The Series 2005A bonds
provided funds to make loans to 10 Missouri political subdivisions and 1 Missouri
non-profit corporation that were used to finance water pollution control and
drinking water projects. A portion of the proceeds of the Series 2005A bonds
issued by the Authority were used to purchase subordinate Participant Bonds
authorized and issued by the District in the aggregate principal amount of
$6,800,000, the proceeds of which were used for constructing, repairing, and
equipping new and existing wastewater facilities. The District’s Participant
Bonds have interest rates ranging from 3.0% to 5.0% and are payable in
semiannual installments at varying amounts through July 1, 2026.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 43
In May 2004, the Authority authorized and issued $179,780,000 of State
Revolving Funds Programs Series 2004B (“Series 2004B”). The Series 2004B
bonds provided funds to make loans to 7 Missouri political subdivisions that were
used to finance water pollution control projects. A portion of the proceeds of the
Series 2004B bonds issued by the Authority were used to purchase subordinate
Participant Bonds authorized and issued by the District in the aggregate
principal amount of $161,280,000, the proceeds of which were used to finance the
District’s three water pollution control construction projects outlined in the
agreement. The District’s Participant Bonds have interest rates ranging from
2.0% to 5.3% and are payable in semiannual installments at varying amounts
through January 1, 2027.
The Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds do not constitute a
legal debt or liability for the District, the State of Missouri, or for any political
subdivision thereof and do not constitute indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction. The issuance of the
Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds and the Series 2009A,
2010A, 2010C, 2011A, and 2013A direct loans (pages 45-50) do not obligate the
District to levy any form of taxation or to make any appropriation for their
payments in any fiscal year. The principal and interest on the bonds are
expected to be paid from future wastewater revenues.
In connection with the District’s issuance of the Participant Bonds, which were
purchased with the proceeds of the Series 2004B, 2005A, 2006A, 2006B, and
2008A/B bonds, the District participates in the State Revolving Loan Program
established by the DNR. Monies from federal capitalization grants and state
matching funds are used to fund a reserve account for each participant.
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits in a
bond reserve fund in the District’s name an additional 60% of the expenditure
amount for the Series 2004B bonds or 70% for the Series 2005A, 2006A, and
2006B bonds or 100% for the Series 2008A/B bonds. Interest earned from this
reserve fund can be used by the District to fund interest payments on the bonds.
On the date of each payment of the principal amount of the District’s Participant
Bonds, the trustee transfers from this reserve account to the master trustee an
amount equal to 60% of the principal payment for the Series 2004B bonds or 70%
for the Series 2005A, 2006A, and 2006B bonds or 100% for the series 2008A/B
bonds. The costs of operation and maintenance of the wastewater treatment and
sewerage facilities and the debt service is payable from wastewater revenues.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 44
In accordance with the Series 2004A, 2004B, 2005A, 2006A, 2006B, and 2008A/B
bonds, the District’s annual net operating revenues from wastewater activities,
as defined in the agreement, coupled with investments earnings must be at least
125% of the current year’s principal and interest due on all senior bonds and at
least 115% of the current year’s principal and interest due on all bonds. At
June 30, 2015 and 2014, the District was in compliance with this covenant.
Principal And Interest Requirements On Revenue Bonds Payable
The annual principal and interest requirements to maturity on revenue bonds
payable outstanding as of June 30, 2015 are as follows:
Energy Efficiency Leveraged Note Payable
In April 2004, the DNR loaned $98,595 to the District. The Energy Efficiency
Leveraged Note Payable bore interest at a rate of 3.2% per annum and was
payable through August 1, 2013. The purpose of this note was to finance the
design, acquisition, installation, and implementation of energy conservation
measures. The principal and interest on this note was paid from the energy
savings from the projects or avoided costs resulting from the projects. There is no
outstanding balance for principal and interest at June 30, 2015 or 2014.
Years ending June 30,Principal Interest Total
2016 22,860,000$ 37,693,092$ 60,553,092$
2017 26,140,000 37,047,706 63,187,706
2018 26,685,000 36,263,250 62,948,250
2019 27,475,000 35,553,513 63,028,513
2020 28,510,000 34,707,502 63,217,502
2021-2025 157,355,000 158,613,608 315,968,608
2026-2030 162,645,000 128,740,245 291,385,245
2031-2035 169,120,000 90,661,766 259,781,766
2036-2040 189,795,000 50,974,670 240,769,670
2041-2043 97,645,000 8,091,500 105,736,500
Total 908,230,000$ 618,346,852$ 1,526,576,852$
Wastewater System Revenue Bonds Payable/
Water Pollution Control and Drinking Water
Revenue Bonds Payable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 45
Energy Efficiency Leveraged Note Payable
In February 2012, the DNR loaned $223,793 to the District. The Energy
Efficiency Leveraged Note Payable bears interest at a rate of 2.5% per annum
and is payable through February 1, 2020. The purpose of this note was to finance
the design, acquisition, installation, and implementation of energy conservation
measures. As of June 30, 2015, the District completed the specific energy
conservation projects and spent $199,489 of the $223,793 loan amount. The
remaining $24,203 was returned to the DNR as a principal payment. The
principal and interest on this note will be paid from the energy savings from the
projects or avoided costs resulting from the projects.
Principal And Interest Requirements On Energy Efficiency Leveraged
Note Payable
The annual principal and interest requirements to maturity on the Energy
Efficiency Leveraged Note Payable outstanding as of June 30, 2015 are as
follows:
State Of Missouri Direct Loan Series 2013A
In October 2013, the State of Missouri Direct Loan Program issued to the District
an amount totaling $52,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future
wastewater revenues. The District’s interest rate is 1.6% and is payable in
semiannual installments at varying amounts through July 1, 2034.
Years ending June 30, Principal Interest Total
2016 32,359$ 3,563$ 35,922$
2017 33,173 2,749 35,922
2018 34,007 1,915 35,922
2019 34,863 1,059 35,922
2020 16,163 202 16,365
Total 150,565$ 9,488$ 160,053$
Energy Efficiency Leveraged Note Payable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 46
Principal And Interest Requirements On State Of Missouri Direct Loan
Series 2013A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.6% based on the amount that has been borrowed. All funds
have been drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2013A outstanding as of June 30, 2015 are as
follows:
State Of Missouri Direct Loan Series 2011A
In November 2011, the State of Missouri Direct Loan Program issued to the
District an amount totaling $39,769,300 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future
wastewater revenues. The District’s interest rate is 1.5% and is payable in
semiannual installments at varying amounts through January 1, 2034.
Principal And Interest Requirements On State Of Missouri Direct Loan
Series 2011A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.5% based on the amount that has been borrowed. All funds
have been drawn on this loan.
Years ending June 30,Principal Interest Total
2016 2,080,000$ 747,697$ 2,827,697$
2017 2,134,000 765,545 2,899,545
2018 2,190,000 732,251 2,922,251
2019 2,247,000 698,089 2,945,089
2020 2,305,000 663,036 2,968,036
2021-2025 12,459,000 2,756,660 15,215,660
2026-2030 14,171,000 1,732,761 15,903,761
2031-2035 14,414,000 568,199 14,982,199
Total 52,000,000$ 8,664,238$ 60,664,238$
State of Missouri Direct Loan Series 2013A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 47
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2011A outstanding as of June 30, 2015 are as
follows:
State Of Missouri Direct Loan Series 2010C
In December 2010, the State of Missouri Direct Loan Program issued to the
District an amount totaling $37,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future
wastewater revenues. The District’s interest rate is 1.7% and is payable in
semiannual installments at varying amounts through January 1, 2031.
Principal And Interest Requirements On State Of Missouri Direct Loan
Series 2010C
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.7% based on the amount that has been borrowed. All funds have
been drawn on this loan.
Years ending June 30,Principal Interest Total
2016 1,620,000$ 586,273$ 2,206,273$
2017 1,662,000 561,508 2,223,508
2018 1,704,000 536,086 2,240,086
2019 1,747,000 510,025 2,257,025
2020 1,792,000 483,304 2,275,304
2021-2025 9,668,000 1,991,116 11,659,116
2026-2030 10,962,000 1,213,127 12,175,127
2031-2034 9,819,300 340,749 10,160,049
Total 38,974,300$ 6,222,188$ 45,196,488$
State of Missouri Direct Loan Series 2011A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 48
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010C outstanding as of June 30, 2015 are as
follows:
State Of Missouri Direct Loan Series 2010A
In January 2010, the State of Missouri’s Direct Loan Program - ARRA issued to
the District an amount totaling $7,980,700 for the construction, improvement,
renovation, repair, replacement and equipping of its wastewater system, under
the authority of and in full compliance with the District’s Charter (“Plan”). The
District’s interest rate is 1.5% and is payable in semiannual installments at
varying amounts through July 1, 2031.
Principal And Interest Requirements On State Of Missouri Direct Loan
Series 2010A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.5% based on the amount that has been borrowed. All funds
have been drawn on this loan.
Years ending June 30,Principal Interest Total
2016 1,620,000$ 515,466$ 2,135,466$
2017 1,663,000 488,582 2,151,582
2018 1,705,000 460,969 2,165,969
2019 1,750,000 432,655 2,182,655
2020 1,795,000 403,590 2,198,590
2021-2025 9,701,000 1,554,968 11,255,968
2026-2030 11,027,000 706,563 11,733,563
2031 2,383,000 29,560 2,412,560
Total 31,644,000$ $ 4,592,353 $ 36,236,353
State of Missouri Direct Loan Series 2010C
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 49
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010A outstanding as of June 30, 2015 are as
follows:
State Of Missouri Direct Loan Series 2009A
In October 2009, the DNR loaned $23,000,000 to the District. The State of
Missouri Direct Loan Series 2009A bears interest at a rate of 1.5% per annum
and is payable through January 1, 2030. The purpose of this note was to finance
the designing, constructing, improving, renovating, repairing, replacing and
equipping new and existing sewer facilities within the District. The principal
and interest on the bonds are expected to be paid from future wastewater
revenues.
Principal And Interest Requirements On State Of Missouri Direct Loan
Series 2009A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.5% based on the amount that has been borrowed. All funds have
been drawn on this loan.
Years ending June 30,Principal Interest Total
2016 358,600$ 101,492$ 460,092$
2017 366,000 96,161 462,161
2018 373,300 90,717 464,017
2019 380,900 85,164 466,064
2020 388,700 79,498 468,198
2021-2025 2,065,200 308,380 2,373,580
2026-2030 2,283,300 148,424 2,431,724
2031-2032 731,000 10,856 741,856
Total 6,947,000$ 920,692$ 7,867,692$
State of Missouri Direct Loan Series 2010A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 50
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2009A outstanding as of June 30, 2015 are as
follows:
In accordance with the Direct Loan Series 2009A, 2010A, 2010C, 2011A, and
2013A, the District’s annual net operating revenues from wastewater activities,
as defined in the agreement, coupled with investments earnings must be at least
115% of the current year’s principal and interest due on all bonds. At June 30,
2015 and 2014, the District was in compliance with this covenant.
Wastewater System Cash And Investments
The following accounts have been established in accordance with bond ordinances
and financing agreements that require receipts generated from operations be
segregated and certain reserve accounts be established:
Revenue Fund
The Revenue Fund will be used for the purpose of depositing wastewater and
stormwater operating revenues, providing funds to pay for expenses related to
the operation and maintenance of the District, and fulfilling Sinking Fund
requirements in accordance with the bond ordinances.
Sinking Fund
The bond ordinances provide for deposits to and the use of monies in the Sinking
Fund to be used for the sole purpose of principal and interest payments on the
bonds. Sufficient monies shall be paid in periodic installments from the Revenue
Fund.
Debt Service Fund
The Debt Service Fund shall be used by the Trustee for the sole purpose of
paying the principal and interest on the bonds, as and when the same become
due.
Years ending June 30,Principal Interest Total
2016 1,049,400$ 267,206$ 1,316,606$
2017 1,073,700 251,811 1,325,511
2018 1,098,500 236,045 1,334,545
2019 1,123,900 219,915 1,343,815
2020 1,149,900 203,411 1,353,311
2021-2025 6,161,000 755,831 6,916,831
2026-2030 6,907,200 282,079 7,189,279
Total 18,563,600$ 2,216,298$ 20,779,898$
State of Missouri Direct Loan Series 2009A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 51
Debt Service Reserve Fund
After initial deposit of the amount required pursuant to the bond ordinances and
financing agreements of the Series 2004A, 2006C, 2008A, 2010B, 2011B, 2012A,
and 2013B bonds, monies in the Debt Service Reserve Fund shall be disbursed
and expended by the District solely for the payment of the principal and interest
on the bonds and notes to the extent of any deficiency in the Debt Service Fund
for such purpose. The District may disburse and expend monies from the Debt
Service Reserve Fund for such purpose immediately. As of June 30, 2015 and
2014, cash and investments in the Debt Service Reserve Fund totaled
$57,664,537 and $55,911,516, respectively.
Special Participant Bond Reserve Account
For the Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds, the District
shall deposit into the Special Participant Bond Reserve Account amounts in
accordance with the bond ordinances, which shall be disbursed and expensed by
the District solely for the payment of the principal and interest on the
Participant Bonds to the extent of any deficiency in the Sinking Fund for such
purpose. At June 30, 2015 and 2014, cash and investments in the Special
Participant Bond Reserve Account held on behalf of the District totaled
$113,155,635 and $121,443,013, respectively. Monies in this account are not
considered to be District funds. However, interest earnings on this account may
be used by the District to reduce interest payments on the bonds outstanding.
Renewal And Extension Fund
All sums accumulated and retained in the Renewal and Extension Fund shall be
first used to prevent default in the payment of principal and interest on the
bonds when due and shall then be applied by the District for purposes pursuant
to the trust indenture. No monies have been deposited into this account at
June 30, 2015.
Project Fund
The Project Funds for all bond issuances outstanding will be used for the purpose
of providing monies to pay project costs. The proceeds from the bonds and notes,
after a deposit into the Debt Service Reserve Fund for the amounts required
pursuant to the bond ordinances and note agreements of Series 2004A, 2006C,
2008A, 2010B, 2011B, 2012A, and 2013B bonds, shall be deposited into the
Project Fund. At June 30, 2015 and 2014, cash and investments in the Project
Fund totaled $63,327,909 and $194,968,331, respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 52
Rebate Fund
The bond ordinances provide for the creation of a Rebate Fund into which shall
be deposited such amounts as are required to be deposited therein pursuant to
the arbitrage instructions regarding the calculation and payment of rebate
amounts due. The District does not have any rights in or claims to such money;
provided, however, any funds remaining in the Rebate Fund after redemption
and payment of all bonds and payment of any rebatable arbitrage amount, or
provision having been made therefore, shall be remitted to the District. At
June 30, 2015 and 2014, cash and investments in the Rebate Fund totaled
$230,318 and $231,909, respectively.
Administrative Fee Fund
The Administrative Fee Fund will be used for the payment of the Trustee’s fees
and other administrative fees pursuant to the note agreement. The Trustee has
the ability to immediately withdraw the fee amounts when due. Monies held in
this account shall not be invested.
Pledged Revenues
The District pledges revenues to ensure the repayment of all outstanding revenue
bonds. These bonds’ proceeds are used for the District’s capital improvement and
replacement program and their repayment comes from, and is collateralized by,
the District’s wastewater revenues. These revenues are pledged through 2043 at
an approximate amount of $1.5 billion. The proportion of future pledged revenues
to future wastewater revenues is not estimable as annual total revenues
fluctuate. Principal and interest paid out during FY15 was $61.8 million with
pledged revenues of $128.1 million. This provided a coverage ratio of 2.1 and
represented 44.4% of all net operating revenues.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 53
7. Pension Plan
General Information About The Pension Plan
Pension Plan description. The Metropolitan St. Louis Sewer District Employees’
Pension Plan (Pension Plan) is a noncontributory single employer defined benefit
plan providing retirement benefits as well as death and disability benefits. As a
condition of employment, all full-time employees of the District commencing
service prior to December 31, 2010, were eligible to be covered by the Pension
Plan. As of January 1, 2011, the Pension Plan was frozen to new employees.
Instead, new employees of the District may participate in the Defined
Contribution Plan and/or the Deferred Compensation Plan. Current employees
with less than ten years of service on this date could also voluntarily elect to
transfer from the Pension Plan and enter the Defined Contribution Plan.
Benefits provided. All benefits vest after five years of credited service. Members
retiring at or after age 65 with five or more years credited service are entitled to
a pension benefit. The Pension Plan permits early retirement with reduced
benefits beginning at age 55 if the member has completed five years of
employment. Ordinance No. 10664 provides for unreduced retirement benefits to
any member whose combined age and term of service is equal to 75.
Effective August 1, 2004, Ordinance No. 11781 amended the Pension Plan to
change the benefit formula to 1.7% of final average earnings plus 0.4% of final
average earnings that are in excess of covered earnings multiplied by the period
of years and months of credited service not to exceed 35 years without including
accrued sick leave. Sick leave is paid out at 1.25% per year of service times the
amount of leave accrued. Also, the Pension Plan was amended to provide the
retiring member with a 10% partial lump sum payment option. The balance of
the distribution will be paid in accordance with any one of the other payment
options available under the Pension Plan.
The retirement benefit payable to a member who retires after the normal
retirement date is the greater of a) the benefit that would have been payable on
the normal retirement date plus a special annual retirement benefit provided by
the accumulated value, at 4% per annum interest, of the monthly benefit that
would have been received prior to the postponed retirement date or b) the benefit
determined as of the postponed retirement date under the normal formula.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 54
Effective August 27, 2011, Ordinance No. 13288 amended the Pension Plan to
include the following: “Upon termination or complete discontinuance of
contributions under the Plan, the rights of all Members to benefits accrued to the
date of such termination or discontinuance shall be non-forfeitable, to the extent
then funded.”
Amounts in participants’ accounts are distributed upon retirement, death,
disability, or termination of employment. The normal form of retirement benefit
is either a lump sum payment or equal monthly installments.
The Pension Plan issues a publicly available financial report that includes
financial statements and Required Supplementary Information. That report may
be obtained by writing: The Metropolitan St. Louis Sewer District, 2350 Market
Street, St. Louis, MO 63103-2555.
Employees covered by benefit terms. At December 31, 2014 and 2013, the
following employees were covered by the benefit terms:
Required Employer Contributions. The District’s employees do not contribute to
the Pension Plan. Ordinances establishing the Pension Plan provide for
actuarially determined annual contributions, paid solely by the District, that are
sufficient to pay benefits when due. The Entry Age Normal actuarial funding
method is used to determine contributions.
Contributions of $10,359,139 and $11,850,000, excluding certain professional fees
paid by the District, were made to the Pension Plan during the District’s fiscal
years ended June 30, 2015 and 2014, respectively. These contributions were
made in accordance with actuarially determined contribution requirements based
on actuarial valuations performed at December 31, 2014 and 2013, respectively.
Increase
2014 2013 (Decrease)
Active plan members 710 761 (51)
Retirees and beneficiaries currently receiving benefits 660 636 24
Terminated members entitled to receive benefits 180 179 1
Total 1,550 1,576 (26)
For the Years Ended
December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 55
Net Pension Liability
The net pension liability was measured as of December 31, 2014 and the total
pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date.
Actuarial Assumptions. The total pension liability in the December 31, 2014
actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement:
Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table
for Males or Females, as appropriate, with adjustments for mortality
improvements based on Scale AA.
The actuarial assumptions are based on prior and current year experiences.
The long-term expected rate of return is determined by adding expected inflation
to expected long-term real returns and reflecting expected volatility and
correlation. The capital market assumptions as of December 31, 2014 are as
follows:
Inflation 2.50 percent
Salary Increases 4.25 percent, average, including inflation
Investment Rate of Return 7.00 percent, net of pension plan investment expense,
including inflation
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
Domestic Equity 27% 7%
International Equity 10% 8%
Emerging Market Equities 3% 11%
Global Fixed Income 35% 1%
Absolute Return/HFOF 15% 6%
Real Estate 5% 5%
Real Assets 5% 5%
Total 100%
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 56
Discount rate. The discount rate used to measure the total pension liability was
7.00 percent. The Pension Plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current active and
inactive employees. Therefore, the discount rate for calculating the total pension
liability is equal to the long-term expected rate of return.
Sensitivity of the net pension liability to changes in the discount rate. The
following presents the net pension liability calculated using the 7.00 percent
discount rate, as well as what the District’s net pension liability would be if it
were calculated using a discount rate that is 1-percentage-point lower (6.00
percent) or 1-percentage-point higher (8.00 percent) than the current rate:
Changes in Net Pension Liability
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2013 $275,656,711 $246,247,278 $29,409,433
Changes for the year:
Service cost 5,409,485 5,409,485
Interest 19,900,507 19,900,507
Effect of economic/demographic gains or losses (3,667,991) (3,667,991)
Effect of assumption changes or inputs * 6,500,227 6,500,227
Benefit payments (13,387,127) (13,387,127) —
Employer contributions 10,675,321 (10,675,321)
Net investment income 6,980,349 (6,980,349)
Balances as of December 31, 2014 $290,411,812 $250,515,821 $39,895,991
* In order to better reflect anticipated future experience, the discount rate was decreased from 7.25%
to 7.0% effective December 31, 2014 and the salary increase assumption was changed from 10.0%
grading down to 4.50% over the first three years of service to 4.25% for all years.
1%Current 1%
Decrease Discount Rate Increase
(6.00%) (7.00%) (8.00%)
Net pension liability 72,651,593$ 39,895,991$ 11,897,781$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 57
Pension plan fiduciary net position. Fiduciary net position is the market value of
all plan assets. Total net pension liability is the plan’s pension liability less its
fiduciary net position, i.e., the plan’s unfunded accrued liability.
Pension Expense And Deferred Outflows Of Resources And Deferred
Inflows Of Resources Related To Pensions
For the year ended June 30, 2015, the District recognized pension expense of a
negative $27,850 after all deferred inflows and outflows of resources were
accounted for. At June 30, 2015, the District reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following
sources:
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Other amounts currently reported as deferred outflows of resources ($5,469,591)
related to the District’s contributions subsequent to the measurement date will
be recognized as a reduction of the net pension liability in the year ended
June 30, 2016.
Payable To The Pension Plan
At June 30, 2015, the District did not have outstanding contributions to the
pension plan required for the year ended June 30, 2015.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience —$ 2,910,142$
Changes of assumptions 5,157,205 —
Net difference between projected and actual earnings 8,583,527 —
Contributions made subsequent to measurement date 5,469,591 —
Total 19,210,323$ 2,910,142$
Net Deferred Outflows
of Resources
Year ended June 30,:
2016 2,731,055$
2017 2,731,055
2018 2,731,055
2019 2,637,425
10,830,590$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 58
8. Other Pension Plans
Deferred Compensation Plan
The District offers its employees a Deferred Compensation Plan created in
accordance with Internal Revenue Code Section 457. The Deferred
Compensation Plan, available to all District employees, permits them to defer a
portion of their salary up to Internal Revenue Code limits. The District does not
contribute to the Plan. The deferred compensation is not available to employees
until termination, retirement, death, disability or due to financial hardship as
defined by the Deferred Compensation Plan.
The Deferred Compensation Plan was amended and restated to comply with the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“Act”). The Act
made significant changes to Section 457(b) of the Internal Revenue Code of 1986,
as previously amended. The Deferred Compensation Plan assets are held in
trust for the exclusive benefit of participants and their beneficiaries under
Section 1448 of the Small Business Job Protection Act of 1996. As a result, the
assets and liabilities of the Deferred Compensation Plan are not included in the
accompanying financial statements.
The Deferred Compensation Plan issues a publicly available financial report that
includes financial statements and required supplementary information. That
report may be obtained by writing: The Metropolitan St. Louis Sewer District,
2350 Market Street, St. Louis, MO 63103-2555.
Defined Contribution Plan
The Defined Contribution Plan was established by the District’s Board of
Trustees, through Ordinance 13180, which became effective January 1, 2011.
The following employees are eligible to participate in the Plan: (i) employees first
hired on or after January 1, 2011, and (ii) employees hired prior to January 1,
2011 who elect to terminate participation in the Pension Plan, effective as of
April 1, 2011, in accordance with the provisions of such Pension Plan, and (iii)
employees rehired on or after January 1, 2011 who are not eligible to accrue
benefits under the Pension Plan. An employee shall become a participant in the
Defined Contribution Plan (“DC Plan”) on the first day on which he performs an
hour of service for the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 59
The District’s Board of Trustees, primarily to improve benefits to members,
amends the DC Plan in all its respects. A pension committee consisting of two
members of the District’s Board of Trustees, two elected employee members and
four members of the District’s management staff administer the DC Plan. A
committee of the District’s Board of Trustees, with the aid of an investment
advisor, reviews and evaluates the DC Plan’s investments and the related rates
of return on a periodic basis.
This DC Plan is intended to provide a means whereby the District may provide
retirement benefits to eligible employees and encourage such employees to
establish a regular method of savings, thereby providing a measure of financial
security for such employees and their beneficiaries upon retirement or in the
event of death or disability.
Employer Basic Contributions: For each payroll period, the District contributes
an amount equal to 7% of the covered compensation earned during such period by
each participant entitled to an allocation of such contribution.
Employer Matching Contributions: For each payroll period, the District
contributes an amount equal to 50% of the covered compensation of such
participant withheld as an annual deferral (as defined in the Deferred
Compensation Plan); provided that, before-tax contributions in excess of 4% of
the covered compensation of the participant for the payroll period shall not be
considered for purposes of Employer Matching Contributions. Employer
Matching Contributions shall be up to the maximum amount of compensation
that may be taken into account for the DC Plan year.
In no event shall the sum of the employer contributions and employee
contributions allocated to the account of a participant for the DC Plan year
exceed the lesser of:
(a) The amount specified in the applicable Internal Revenue Code, as
adjusted annually for any applicable increases in the cost of living.
(b) 100% of the participant’s compensation for such year.
The compensation limit referred to in (b) shall not apply to any contribution from
medical benefits after separation from service.
The District’s contributions to the plan amounted to $1,003,944 and $742,851 for
the years ended June 30, 2015 and 2014, respectively. Forfeitures were $108,383
and $3,974 for the years ended June 30, 2015 and 2014, respectively, and there
were no liabilities outstanding as of June 30, 2015.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 60
Vesting: As of any time before the normal retirement age of a participant, the
first day of the month coinciding with or next following a person’s sixty-fifth
birthday and completion of sixty months of continuous service (other than upon
death or permanent disability), the vested percentage of the amounts credited to
the participant’s employer basic contributions account shall be determined in
accordance with the following schedule:
Months Of
Continuous Service
Vested(Non-
Forfeitable)
Percentage
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The Defined Contribution Plan issues a publicly available financial report that
includes financial statements and required supplementary information. That
report may be obtained by writing: The Metropolitan St. Louis Sewer District,
2350 Market Street, St. Louis, MO 63103-2555.
9. Post-Employment Benefits Other Than Pensions
Plan Description
As part of a total compensation package, effective August 1, 2004 for general
employees and, with respect for union members, the later of August 1, 2004 or
the date of union ratification of a Memorandum of Understanding with respect to
this Plan modification, the District provides a single-employer defined benefit
health care plan to employees who retire from the District on or after age 62 and
with five years of service or whose age plus years of service equal 75 points (“Rule
of 75”). The District pays the monthly group health insurance premium for the
individual until the retiree becomes eligible for Medicare at age 65. In addition,
there is a closed group of disabled former employees who receive life insurance
coverage from the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 61
While the actuarial report has prior version rates, updated rates received from
the Human Resources Department for retirees beginning February 2015 are as
follows:
Coverage Tier Monthly Premium
Retiree* $552.67
Retiree + Spouse $1,177.33
Retiree + Child $1,069.73
Family (1 child) $1,631.72
*The District pays the retiree’s premium for a retiree who retires after age 62 or after attaining
75 points. Eventually, affected retirees will have to pay up to 10% of the above premium.
The District’s annual other post-employment benefit (“OPEB”) cost (expense) is
calculated based on the annual required contribution (“ARC”) of the employer, an
amount actuarially determined in accordance with the parameters of GASB 45
and in conjunction with Plan benefits currently in force. The actuarial valuations
have been determined using estimated data provided by the District in
combination with assumptions on the probability of future events, while also
keeping an eye on long-term viability. These valuations are subject to continual
revision as future actuarial measurements may differ significantly from current
measurements due to the realization of new estimates and factors.
The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities. The District’s annual OPEB cost for the current year and the related
information are as follows:
Amortization of past service cost 908,300$
Normal cost 1,462,200
Interest to end of fiscal year 88,900
Annual Required Contribution (ARC) 2,459,400
Interest on net OPEB obligation 190,022
Adjustment to ARC (174,733)
Annual OPEB cost 2,474,689
Contributions made (1,573,400)
Increase in net OPEB obligation 901,289
Net OPEB obligation - beginning of year 5,067,254
Net OPEB obligation - end of year 5,968,543$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 62
The Plan was established by District Ordinance, which assigned the authority to
establish and amend plan benefit provisions to the District.
The contribution requirements of the District and plan members are established
and may be amended by the District. The Plan does not issue a publicly available
report.
Trend Information
As of June 30, 2015, the Plan was not funded. The actuarial accrued liability for
benefits as of July 1, 2013, the latest actuarial valuation, was approximately
$26,264,000, and there were no assets, resulting in an unfunded actuarial
accrued liability (“UAAL”) of approximately $26,264,000. The covered payroll
(annual payroll of active employees covered by the plan) in 2013 was
approximately $60,238,000, and the ratio of the UAAL to covered payroll was
43.6%.
The Schedule of Funding Progress, presented as RSI following the notes to the
financial statements, presents trend information about whether the actuarial
accrued liability for benefits is increasing or decreasing over time.
Actuarial funding calculations of the Plan reflect a long-term perspective. The
Plan’s actuarial valuations involve estimates of the value of reported amounts
and assumptions about the probability of events far into the future. Determined
amounts are subject to continual revision as results are compared to past
expectations and new estimates are made about the future.
Significant actuarial assumptions used in the valuation are as follows:
Latest valuation date July 1, 2013
Actuarial cost method Projected Unit Credit
Discount rate 3.75% per annum
Amortization method Level percentage of payroll amount, open
Amortization period 30-year period
Inflation rate 2.5%
Investment Rate of Return 3.75% annual returns net of both administrative and
investment expenses Health cost trend assumption Getzen Trend Model – 6.9% graded to 4.5% over 70
years
Percentage of
Fiscal Net OPEB Net OPEB Cost Net OPEB
Year Cost Contributed Obligation
2015 2,474,689$ 63.6 5,968,543$
2014 2,442,145 57.1 5,067,254
2013 2,132,454 71.0 4,018,709
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 63
Medical Trend:
The healthcare trends used in this valuation are based on long-term healthcare
trends generated by the Getzen Trend Model (“Model”). The Model is the result
of research sponsored by the Society of Actuaries and completed by a committee
of economists and actuaries. This model is the current industry standard for
projecting long term medical trends. Inputs to the model are consistent with the
assumptions used in deriving the discount rate used in the valuation.
Payroll inflation 3.75% per annum
Mortality RP 2000 Mortality Table (employee and healthy
annuitant tables), projected 5 years from the
valuation date using Scale AA.
Year Medical Year Medical
2013 2040
2014 5.7 2045 5.8
2015 5.4 2050 5.7
2016 5.4 2055 5.5
2017 5.6 2060 5.4
2018 5.5 2065 5.3
2020 5.5 2070 5.2
2025 5.5 2075 5.0
2030 6.5 2080 4.7
2035 6.7 4.5
6.9%6.1%
2083+
Years Of Attained
Service Rate Age Rate
020
1 12.0 30 3.7
2 7.5 40 1.1
50+0.0
Select rates based on service.
Ultimate rates based on attained age.
Ultimate rates are from the Sarason T-1 Table above.
20.0%5.5%
Termination Of Employment:
Select Rates Ultimate Rates
(0 to 4 years of service)(after 4 years of service)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 64
Future Retiree Coverage: 90.0% of eligible employees retiring prior to age 65 are assumed to
elect medical coverage
Future Dependent Care: 25.0% elect spousal coverage, 0.0% elect dependent children
coverage
10. Self-Insurance Programs
The District is exposed to various risks of loss related to torts; theft of, damage
to, and destruction of assets; errors and omissions; injuries to employees; and
natural disasters. The District has established a risk management program and
retains the risk related to its obligation to provide workers' compensation and
medical and hospitalization benefits to its employees; and to pay water backup
claims to its customers. The estimated liabilities for payment of incurred (both
reported and unreported) but unpaid claims relating to these matters are
included as a component of current deposits and accrued expenses, and as such
are expected to be paid within one year of the date of the Statement of Net
Position. At June 30, 2015 and 2014, these liabilities amounted to $4,317,384 and
$2,923,884, respectively.
Age Before 75 Points After 75 Points
55
56 2.0 10.0
57 2.0 10.0
58 2.0 10.0
59 3.0 10.0
60 4.0 15.0
61 5.0 15.0
62 20.0 35.0
63 10.0 25.0
64 20.0 25.0
65 100.0 100.0
Retirement - Rates Vary By Age
1.0% 10.0%
Percent
Becoming
Age Disabled
20
30 0.064
40 0.102
50 0.311
Disability
0.056%
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 65
The claims liabilities reported are based on the requirements of GASB Statement
No. 10, which requires that a liability for claims be reported if information
obtained prior to the issuance of the financial statements indicates it is probable
that a liability has been incurred and the amount of the liability can be
reasonably estimated. Changes in the balance of claims liabilities during fiscal
2015 and 2014 were as follows:
The District obtains periodic funding valuations from the third-party
administrators managing the self-insurance programs and adjusts the charges as
required to maintain the appropriate level of estimated claims liability. The
District also maintains excess liability insurance coverage for workers'
compensation and medical and hospitalization claims; general liability; and
water backup damage to customers’ property.
The District purchases commercial insurance for all other risks of loss. Settled
claims have not exceeded this commercial coverage in any of the past three years.
11. Closure And Post-Closure Care Costs
State and federal laws and regulations require the District to place a final cover
on its Prospect Hill Reclamation Project landfill site when it stops accepting
waste and to perform certain maintenance and monitoring functions at the site
for 30 years after closure. Although closure and post-closure care costs will be
paid only near or after the date that the landfill stops accepting waste, the
District reports a portion of these closure and post-closure care costs as an
operating expense in each period based on landfill capacity used as of the end of
the fiscal year. The $783,473 and $756,936 reported as landfill closure and post-
closure care liabilities at June 30, 2015 and 2014, respectively, represent the
cumulative amounts reported at fiscal year-end based on the use of 96.7% and
94.7% of the estimated capacity of the landfill for fiscal years ended 2015 and
2014, respectively. The District will recognize the remaining estimated cost of
closure and post-closure care of $26,536 at June 30, 2016 as the facility nears
capacity. These amounts are based on what it would cost to perform all closure
and post-closure care in 2015.
2015 2014
Liability - Beginning of Year 2,923,884$ 3,041,045$
Current year claims and changes in estimates 15,852,729 12,455,966
Claim payments (14,459,229) (12,573,127)
Liability - End of Year 4,317,384$ 2,923,884$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 66
The District is required to demonstrate that it has the financial capability to
close the landfill to the State of Missouri through the use of a financial test as
specified in 10 CSR 80-2.030(4)(D)6 of the Missouri Solid Waste Management
Rules. The District has complied with the State’s requirement. The District
recognizes that estimates of closure costs may change as a result of inflation,
deflation, and/or changes in technology and applicable laws and regulations. If
closure cost estimates change, the liability currently reported on the Statement of
Net Position will be adjusted accordingly.
12. Commitments And Contingencies
United States And State Of Missouri V. Metropolitan St. Louis Sewer
District; In The United States District Court For The Eastern District Of
Missouri; Case No. 07-1120.
A lawsuit was filed by the Department of Justice on behalf of the United States
Environmental Protection Agency (“EPA”) for various alleged violations of the
Clean Water Act. The suit was based on violations of the Clean Water Act as a
result of overflows in the combined and sanitary sewer systems causing
pollutants to reach waters of the United States. There were other counts
involving violations of permit conditions. The District had been the subject of
several investigatory actions by EPA over the past several years. Negotiations
had been ongoing with the EPA and the Missouri Department of Natural
Resources (“DNR”) regarding the sewer collection system, both the combined
system and the sanitary system, for several years. The Missouri Coalition for the
Environment (“MCE”) gave Notice of Intent to Sue the District under the citizen
suit provisions of the Clean Water Act. EPA and the DNR then brought the suit
in June 2007, and MCE moved to intervene. Intervention was granted in August
2007. In October 2007, the Court granted the District’s motion to dismiss all of
the plaintiffs’ claims for civil penalties attributable to any and all of the District’s
alleged violations of the Clean Water Act that occurred before June 11, 2002.
Also, the suit alleged that the District did not have an approved Long-Term
Control Program (“LTCP”) for the combined system. The District had been
working on these issues for several decades and had asked voters to approve
bonds and rate increases to rehabilitate and maintain the collection system. As
required by its Charter, the District had increased rates which continued to fund
the improvements sought by the EPA and the DNR. In September 2008, the
Judge put in place a Stay while the parties mediated the issues. Pursuant to
MSD Ordinance No. 13277, MSD executed the Consent Decree (“CD”) on July 15,
2011. The CD was lodged with the court on August 4, 2011. An extended public
comment period ended October 10, 2011.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 67
On April 27, 2012, the Court approved and entered the decree, thus concluding
the litigation of this lawsuit. Although this litigation matter has concluded, MSD
continues to work diligently to implement the CD.
The CD requires the District to spend approximately $4.7 billion, in 2010 dollars,
over a 23-year implementation period. Throughout this period improvements
will be made to the District’s separate sewer system, combined sewer system, and
wastewater treatment plants. The District continues to comply with the CD. On
June 1, 2011, the State of Missouri approved Chapter 11, Chapter 12, and
Appendix Q of the District’s Combined Sewer Overflow Long-Term Control Plan
Updated Report, dated February 2011.
Flooding Cases
The District was originally a defendant in five (5) different flooding cases related to
the September 14, 2008, rain event precipitating from remnants of Hurricane Ike.
These cases consisted of three (3) property damage cases and two (2) wrongful death
cases. The defense costs associated with these cases has been covered by the
District’s insurance carrier, with a reservation of rights. Of the five (5) cases, one (1)
involves flooding of Maline Creek and the others involve flooding of the River Des
Peres. All five (5) original cases are now closed; with the last one (a property
damage case) settled in July 2015. In summation, two (2) of the four (4) cases
resolved were voluntarily dismissed by the plaintiffs, another case was a property
damage case which settled prior to 2015, and the wrongful death case settled prior
to trial. Two new cases relating to flooding from Hurricane Ike were filed in July
2015. The District’s insurance carrier is again covering defense costs, with a
reservation of rights. The District does not believe these two cases pose a significant
liability. In addition to the above discussed flooding cases, on September 13, 2013,
five (5) new property damage cases were filed against the District. These cases have
yet to be served on the District.
The District is a defendant in various other matters of litigation. Of these
matters, management and District’s legal counsel do not anticipate any material
effect on the June 30, 2015 and 2014 financial statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 68
Contingencies
The District has entered into construction and other contracts amounting to
$302,603,787 and $247,737,650 at June 30, 2015 and 2014, respectively. Grants
to be received from various governmental agencies and entities to partially offset
the cost of the contract commitments amounted to $34,228 and $726,856 at
June 30, 2015 and 2014, respectively. The District had $518,000,000 in revenue
bonds authorized by the voters but unissued as of both June 30, 2015 and 2014.
These funds were sought to enable the District to comply with federal and state
clean water requirements.
13. Restricted Net Position
The Statements of Net Position report $151,292,103 and $142,764,156 of
restricted net position at June 30, 2015 and 2014, respectively, of which
$78,114,762 and $70,920,910 are restricted due to enabling legislation, as of
June 30, 2015 and 2014, respectively.
14. Segment Information
The District issued wastewater revenue bonds to finance wastewater
infrastructure projects. The District accounts for both wastewater and
stormwater activities in a single enterprise fund, but investors in those bonds
rely solely on the revenue generated by the wastewater activities for repayment.
Fiscal year 2015 and 2014 summary financial information for each business
segment is presented below.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 69
The District’s adoption of GASB 68 in fiscal year 2015, as noted in the Adoption
of New Accounting Standards section of Note 1, resulted in restating the
beginning balance of net position due to the recognition of a beginning net
pension liability. The impact of this change on the District’s Wastewater and
Stormwater Segments’ Statements of Net Position, as presented in the
Statements of Revenues, Expenses and Changes in Net Position is as follows:
In fiscal year 2015 there was one restatement between Wastewater and
Stormwater Segments. Stormwater Best Management Practices (“BMP”)
deposits are collected to ensure proper BMP construction. In prior years these
BMP deposits were presented on the Wastewater Segment Statements. In fiscal
year 2015, the BMP deposits and corresponding cash and investment accounts
were restated as Stormwater liabilities and assets. These restatements have no
impact on the enterprise wide statements.
FY 2015
Wastewater Stormwater Total
Net Position - Beginning Of Year,
As Previously Stated 1,721,395,422$ 546,557,373$ 2,267,952,795$
Effect of Adoption of GASB 68:
establishing a beginning
net pension liability (20,045,508) (3,578,152) (23,623,660)
Net Position - Beginning Of Year,
As Restated 1,701,349,914$ 542,979,221$ 2,244,329,135$
Old Presentation of FY 2014 New Presentation of FY 2014
Statements of Net Position Statements of Net Position
Wastewater Stormwater Total Wastewater Stormwater Total
Current Assets:Current Assets: Unrestricted Current Assets Unrestricted Current Assets
Cash and cash equivalents 91,820,149$ 3,217,637$ 95,037,786$ Cash and cash equivalents 89,968,468$ 5,069,318$ 95,037,786$
Investments 100,878,371 4,222,504 105,100,875 Investments 98,575,723 6,525,152 105,100,875
Total Unrestricted Current Assets 192,698,520$ 7,440,141$ 200,138,661$ Total Unrestricted Current Assets 188,544,191$ 11,594,470$ 200,138,661$
Other Assets:Other Assets: Long-term investments 70,161,237$ 2,924,238$ 73,085,475$ Long-term investments 68,573,902$ 4,511,573$ 73,085,475$
Current Liabilities:Current Liabilities: Deposits and accrued expenses 33,336,518$ -$ 33,336,518$ Deposits and accrued expenses 27,594,854$ 5,741,664$ 33,336,518$
Statements of Cash Flow Statements of Cash Flow
Wastewater Stormwater Total Wastewater Stormwater Total
Cash Flows From Operating Activities: Cash Flows From Operating Activities:
Paid to suppliers for goods and services (60,318,262)$ (17,590,886)$ (77,909,148)$ Paid to suppliers for goods and services (62,169,943)$ (15,739,205)$ (77,909,148)$
Net Increase (Decrease) In Cash Net Increase (Decrease) In Cash
And Cash Equivalents (1,405,263)$ (1,346,561)$ (2,751,824)$ And Cash Equivalents (3,256,944)$ 505,120$ (2,751,824)$
Cash And Cash Equivalents At End Of Year 154,405,496$ 24,597,285$ 179,002,781$ Cash And Cash Equivalents At End Of Year 152,553,815$ 26,448,966$ 179,002,781$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 70
A segment is an identifiable activity reported as a stand-alone entity for which
one or more revenue bonds are outstanding. A segment has a specifically
identifiable revenue stream pledged in support of the revenue bonds and has
related expenses, gains and losses and assets and liabilities that are required by
external parties to be accounted for separately. The wastewater system is the
only reportable segment that meets the requirements of GASB Statement No. 34,
Basic Financial Statements - and Management’s Discussion and Analysis - for
State and Local Governments. The stormwater system is reported on for
informational purposes only.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 71
Financial information as of and for the years ended June 30, 2015 and 2014 of
the District’s Wastewater Segment is as follows:
2014
Assets 2015 (As Restated)
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 70,358,397$ 89,968,468$
Investments 62,592,570 98,575,723
Sewer service charges receivable, less allowance of
$52,696,320 in 2015 and $51,398,281 in 2014 49,642,870 46,390,489
Unbilled sewer service charges receivable, less allowance of
$440,129 in 2015 and $402,335 in 2014 22,049,122 20,116,744
Accrued income on investments 601,855 746,795
Other receivables 1,650,498 1,057,452
Supplies inventory 6,360,539 6,223,099
Total Unrestricted Current Assets 213,255,851 263,078,770
Non-Current Assets
Restricted Assets
Cash and cash equivalents 59,953,973 62,585,347
Investments 53,220,698 162,975,839
Long-term investments 28,088,302 48,391,812
Property taxes receivable, less allowance of $634 in 2015
and $13,382 in 2014 (126,463) 26,294
Accrued income on investments 216,287 259,601
Total Restricted Non-Current Assets 141,352,797 274,238,893
Other Assets
Notes receivable 13,563,540 14,116,801
Long-term investments 165,781,358 68,573,902
Total other assets 179,344,898 82,690,703
Capital Assets
Depreciable:
Treatment and disposal plant and equipment 1,214,483,762 1,184,278,860
Collection and pumping plant 1,727,606,247 1,678,492,307
General plant and equipment 75,667,913 77,101,471
3,017,757,922 2,939,872,638
Less: Accumulated depreciation 1,041,916,229 986,568,052
Net depreciable assets 1,975,841,693 1,953,304,586
Non-depreciable:
Land 50,292,691 49,317,549
Construction in progress 399,987,281 291,894,365
Net capital assets 2,426,121,665 2,294,516,500
Total Non-Current Assets 2,746,819,360 2,651,446,096
Total Assets 2,960,075,211 2,914,524,866
Deferred Outflow of Resources:
Bonds and Notes Payable-Deferred Loss 9,599,096 10,108,350
Pension-related Outflows 16,300,636 —
Total Deferred Outflow of Resources 25,899,732 10,108,350
WASTEWATER SEGMENT
STATEMENTS OF NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 72
2014
Liabilities 2015 (As Restated)
Current Liabilities
Contracts and accounts payable 34,058,044$ 30,764,638$
Deposits and accrued expenses 30,338,248 27,594,854
Retainage payable 6,952,750 9,566,082
Current portion of bonds and notes payable 29,620,359 20,268,080
100,969,401 88,193,654
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable — 273,006
Retainage payable 156,538 131,941
156,538 404,947
Total Current Liabilities 101,125,939 88,598,601
Non-Current Liabilities
Deposits and accrued expenses 13,067,791 11,811,608
Net Pension Liability 33,853,154 —
Bonds and notes payable 1,105,481,067 1,102,827,585
Total Non-Current Liabilities 1,152,402,012 1,114,639,193
Total Liabilities 1,253,527,951 1,203,237,794
Deferred Inflow of Resources:
Pension-related Inflows 2,469,358 —
Total Deferred Inflow of Resources 2,469,358 —
Net Position
Net investment in capital assets 1,363,947,246 1,376,497,525
Restricted for:
Debt service 73,177,341 71,843,246
Subdistrict construction and improvement 4,334,588 6,027,838
Unrestricted 288,518,459 267,026,813
Total Net Position 1,729,977,634$ 1,721,395,422$
For The Years
Ended June 30,
WASTEWATER SEGMENT
STATEMENTS OF NET POSITION (Continued)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 73
2015 2014
Operating Revenues
Sewer service charges 282,957,325$ 248,762,503$
Recovery of (Provision for) doubtful sewer service charge accounts (2,229,949) 7,230,389
Licenses, permits, and other fees 6,656,831 6,562,607
Other 1,451,670 1,866,902
Total Operating Revenues 288,835,877 264,422,401
Operating Expenses
Pumping and treatment 60,765,831 54,125,550
Collection system maintenance 32,141,159 32,721,633
Engineering 4,589,048 5,569,007
General and administrative 48,555,339 45,661,041
Water backup claims 3,862,390 2,713,168
Depreciation 68,289,230 63,757,854
Asset management 13,373,795 12,431,515
Total Operating Expenses 231,576,792 216,979,768
Operating Income 57,259,085 47,442,633
Non-Operating Revenues
Property taxes levied by the District (152,757) 16,629
Investment income 2,555,654 2,670,333
Rent and other income 37,321 302,506
Total Non-Operating Revenues 2,440,218 2,989,468
Non-Operating Expenses
Net loss on disposal and sale of capital assets 1,026,567 5,203,319
Non-recurring projects and studies 10,579,078 2,115,233
Interest expense 27,138,546 25,661,127
Total Non-Operating Expenses 38,744,191 32,979,679
Income Before Capital Grants And Contributions 20,955,112 17,452,422
Capital Grants And Contributions
Utility plant contributed 6,979,980 3,390,795
Grant revenue 692,628 228,748
Total Capital Grants And Contributions 7,672,608 3,619,543
Change In Net Position 28,627,720 21,071,965
Net Position - Beginning Of Year, As Previously Stated 1,721,395,422 1,700,323,457
Effect of Adoption of GASB 68 (20,045,508) —
Net Position - Beginning Of Year, As Restated 1,701,349,914 1,700,323,457
Net Position - End Of Year 1,729,977,634$ 1,721,395,422$
WASTEWATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 74
2014
2015 (As Restated)
Cash Flows From Operating Activities
Received from customers 283,741,361$ 249,853,960$
Paid to employees for services (94,150,602) (91,425,385)
Paid to suppliers for goods and services (66,614,057) (62,169,943)
Net Cash Provided By Operating Activities 122,976,702 96,258,632
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 692,920 233,450
Proceeds from issuance of debt 35,956,725 173,411,628
Premium and (discounts) on sale of bonds — 9,937,121
Interest received on bond proceeds to be used for capital improvements 291,725 348,476
Principal paid on debt (20,268,080) (10,071,556)
Interest and fees paid on debt (43,213,255) (37,522,184)
Payments for capital assets (196,100,162) (158,323,507)
Proceeds from sale of capital assets 301,443 273,138
Build America bond tax credit 1,614,982 1,603,658
Net Cash Provided By (Used In) Capital And Related
Financing Activities (220,723,702) (20,109,776)
Cash Flows From Investing Activities
Purchase of investments (338,845,071) (544,430,180)
Proceeds from sale and maturity of investments 408,929,979 460,116,950
Investment income 5,383,326 4,604,924
Proceeds from rents 37,321 302,506
Net Cash Provided By (Used In) Investing Activities 75,505,555 (79,405,800)
Net Increase (Decrease) In Cash And Cash Equivalents (22,241,445) (3,256,944)
Cash And Cash Equivalents At Beginning Of Year 152,553,815 155,810,759
Cash And Cash Equivalents At End Of Year 130,312,370$ 152,553,815$
Ended June 30,
WASTEWATER SEGMENT
STATEMENTS OF CASH FLOWS
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 75
Financial information as of and for the years ended June 30, 2015 and 2014 of
the District’s Stormwater Segment is as follows:
2014
Assets 2015 (As Restated)
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 3,572,342$ 5,069,318$
Investments 3,947,771 6,525,152
Sewer service charges receivable, less allowance of
$151,035 in 2015 and $290,930 in 2014 332,208 173,238
Unbilled sewer service charges receivable, less allowance of
$1,883 in 2015 and $2,303 in 2014 120,059 115,168
Property taxes receivable, less allowance of $44,595 in 2015
and $515,097 in 2014 1,413,045 2,136,300
Accrued income on investments 16,581 9,589
Total Unrestricted Current Assets 9,402,006 14,028,765
Restricted Current Assets
Cash and cash equivalents 5,096,953 6,086,299
Investments 5,433,350 7,568,587
Total Restricted Current Assets 10,530,303 13,654,886
Total Current Assets 19,932,309 27,683,651
Non-Current Assets
Restricted Assets
Cash and cash equivalents 10,476,879 15,293,349
Investments 10,418,686 18,185,406
Long-term investments 42,405,401 17,712,322
Property taxes receivable, less allowance of $21,322 in 2015
and $610,612 in 2014 638,298 822,066
Accrued income on investments 92,168 49,539
Total Restricted Non-Current Assets 64,031,432 52,062,682
Other Assets
Long-term investments 10,328,702 4,511,573
Total other assets 10,328,702 4,511,573
Capital Assets
Depreciable:
Collection and pumping plant 613,419,262 607,616,163
General plant and equipment 16,530,978 16,499,177
629,950,240 624,115,340
Less: Accumulated depreciation 179,206,884 169,489,419
Net depreciable assets 450,743,356 454,625,921
Non-depreciable:
Land 6,228,017 6,220,267
Construction in progress 8,476,273 8,050,557
Net capital assets 465,447,646 468,896,745
Total Non-Current Assets 539,807,780 525,471,000
Total Assets 559,740,089 553,154,651
Deferred Outflow of Resources:
Pension-related Outflows 2,909,687 —
Total Deferred Outflow of Resources 2,909,687 —
STORMWATER SEGMENT
STATEMENTS OF NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 76
2014
Liabilities 2015 (As Restated)
Current Liabilities
Contracts and accounts payable 24,774$ 31,118$
Deposits and accrued expenses 7,220,824 5,741,664
7,245,598 5,772,782
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 736,658 742,374
Retainage payable 44,903 82,122
781,561 824,496
Total Current Liabilities 8,027,159 6,597,278
Non-Current Liabilities
Net Pension Liability 6,042,837 —
Total Non-Current Liabilities 6,042,837 —
Total Liabilities 14,069,996 6,597,278
Deferred Inflow of Resources:
Pension-related Inflows 440,784 —
Total Deferred Inflow of Resources 440,784 —
Net Position
Net investment in capital assets 465,447,646 468,896,745
Restricted for:
Subdistrict construction and improvement 73,780,174 64,893,072
Unrestricted 8,911,176 12,767,556
Total Net Position 548,138,996$ 546,557,373$
For The Years
Ended June 30,
STORMWATER SEGMENT
STATEMENTS OF NET POSITION (Continued)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 77
2015 2014
Operating Revenues
Sewer service charges 1,409,239$ 1,370,519$
Recovery of (Provision for) doubtful sewer service charge accounts 133,578 (20,067)
Other 7,895 —
Total Operating Revenues 1,550,712 1,350,452
Operating Expenses
Collection system maintenance 8,019,048 7,266,178
Engineering 6,364,852 6,615,000
General and administrative (4,218) —
Depreciation 10,352,029 10,329,353
Asset management 212,645 107,336
Total Operating Expenses 24,944,356 24,317,867
Operating Income (Loss) (23,393,644) (22,967,415)
Non-Operating Revenues
Property taxes levied by the District 24,917,081 27,433,690
Investment income 444,937 296,216
Total Non-Operating Revenues 25,362,018 27,729,906
Non-Operating Expenses
Net loss on disposal and sale of capital assets 394,335 45,124
Non-recurring projects and studies 1,738,410 1,377,434
Total Non-Operating Expenses 2,132,745 1,422,558
Income (Loss) Before Capital Grants And Contributions (164,371) 3,339,933
Capital Grants And Contributions
Utility plant contributed 5,324,146 3,482,937
Grant revenue — —
Total Capital Grants And Contributions 5,324,146 3,482,937
Change In Net Position 5,159,775 6,822,870
Net Position - Beginning Of Year, As Previously Stated 546,557,373 539,734,503
Effect of Adoption of GASB 68 (3,578,152) —
Net Position - Beginning Of Year, As Restated 542,979,221 539,734,503
Net Position - End Of Year 548,138,996$ 546,557,373$
STORMWATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 78
15. Subsequent Events
In preparing these financial statements, the District has evaluated events and
transactions for potential recognition or disclosure through October 17, 2015, the
date the financial statements were available to be issued.
On August 5, 2015, the IRS announced a decrease in the sequestration rate for
refundable credit amounts submitted on IRS Form 8038-CP for qualified bonds
from 7.3% to 6.8%. This will be effective for all refund payments processed from
October 1, 2015 to September 30, 2016. Since the District participates in Build
America Bonds, the District will receive 93.2% of the amount requested during
its fiscal year of 2016. The District received 92.7% of the amount requested
during fiscal year 2015.
2014
2015 (As Restated)
Cash Flows From Operating Activities
Received from customers 1,373,264$ 1,344,177$
Paid to suppliers for goods and services (7,919,918) (15,739,205)
Net Cash Provided By Operating Activities (6,546,654) (14,395,028)
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 25,824,104 27,468,024
Cash Flows From Capital And Related Financing Activities
Payments for capital assets (5,143,441) (5,559,226)
Proceeds from sale of capital assets 88,730 71,901
Net Cash Provided By (Used In) Capital And Related
Financing Activities (5,054,711) (5,487,325)
Cash Flows From Investing Activities
Purchase of investments (88,904,937) (82,687,573)
Proceeds from sale and maturity of investments 66,797,462 75,235,093
Investment income 581,944 371,929
Net Cash Provided By (Used In) Investing Activities (21,525,531) (7,080,551)
Net Increase (Decrease) In Cash And Cash Equivalents (7,302,792) 505,120
Cash And Cash Equivalents At Beginning Of Year 26,448,966 25,943,846
Cash And Cash Equivalents At End Of Year 19,146,174$ 26,448,966$
Ended June 30,
STORMWATER SEGMENT
STATEMENTS OF CASH FLOWS
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes To Financial Statements (Continued)
Page 79
On August 20, 2015, the State of Missouri Direct Loan Program issued to the
District an amount totaling $75,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future
wastewater revenues. The District’s interest rate is 1.22% and is payable in
semiannual installments at varying amounts through January 1, 2035.
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account and deposits the
approved amount in a bond reserve fund. The District repays the loan at an
interest rate of 1.22% based on the amount that has been borrowed. As of the
date of this report, the outstanding loan balance was $553,500. The payment
requirements to maturity will be determined after the debt is fully issued.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 80
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
AND RELATED RATIOS
June 30, 2015
Schedule of Changes in Net Pension Liability and Related Ratios
In (000's)
Fiscal Year Ending
June 30, 2015
Total Pension Liability
Service cost $5,409
Interest on total pension liability 19,901
Effect of plan changes 0
Effect of economic/demographic gains or (losses) (3,668)
Effect of assumption changes or inputs 6,500
Benefit payments (13,387)
Net change in total pension liability 14,755
Total pension liability - beginning 275,657
Total pension liability - ending (a) 290,412
Fiduciary Net Position
Employer contributions $10,676
Member contributions 0
Investment income net of investment expenses 6,980
Benefit payments (13,387)
Administrative expenses 0
Net change in plan fiduciary net position 4,269
Fiduciary net position - beginning 246,247
Fiduciary net position - ending (b) 250,516
Net pension liability - ending = (a) - (b) $39,896
Fiduciary net position as a % of total pension liability 86.26%
Covered payroll $44,664
Net pension liability as a % of covered payroll 89.32%
1. Changes of Assumptions. In 2014, amounts reported as changes of assumptions
resulted primarily from adjustments to the discount rate and employee rate increases.
2. This schedule will ultimately present ten years of information when available.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 81
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
EMPLOYEES’ PENSION PLAN AND POST-EMPLOYMENT BENEFIT PLAN
June 30, 2015
Employees' Pension Plan
Schedule of Employer Contributions
Plan Year Actuarially Contribution Covered Contribution
Ending Determined Annual Deficiency Employee as a % of
December 31, Contribution Contribution (Excess) Payroll* Covered Payroll
2005 $7,184,531 $7,184,531 — $40,144,000 17.90%
2006 6,847,278 6,847,278 — 42,113,000 16.26%
2007 7,673,240 7,673,240 — 43,640,000 17.58%
2008 7,425,602 7,425,602 — 48,077,000 15.45%
2009 8,859,535 8,859,535 — 52,267,000 16.95%
2010 10,306,739 10,306,739 — 51,703,000 19.93%
2011 10,969,154 10,969,154 — 49,432,000 22.19%
2012 11,737,168 11,737,168 — 48,333,000 24.28%
2013 11,391,287 11,391,287 — 46,600,000 24.44%
2014 10,675,321 10,675,321 — 44,663,896 23.90%
* Payroll as of prior December 31 Measurement Date
Notes to Schedule
Valuation date:
Actuarially determined contribution rates are calculated as of January 1 of the fiscal year in which the contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level dollar layered, 20 year periods
Asset valuation method 3-year smoothing period
Inflation 2.50%
Salary increases 4.25%, average, including inflation
Investment rate of return 7.00%, net of pension plan investment expense, including inflation
Mortality In the 2015 actuarial valuation, assumed life expectancies were
calculated using the RP-2000 Healthy Annuitant Mortality Table.
Other Post-Employment Benefit Plan
Schedule of Funding Progress
In (000's)
Unfunded
Actuarial UAAL As A
Actuarial Actuarial Accrued Percentage
Actuarial Value Accrued Liability Funded Covered Of Covered
Valuation Of Assets Liability (UAAL) Ratio Payroll Payroll
Date (1)(2) (1)-(2) (1)/(2) (3) (1)-(2)/(3)
7/1/2013 —$ 26,264$ 26,264$ 0% 60,238$ 43.6 %
7/1/2011 — 24,103 24,103 0% 52,649 45.8
7/1/2009 — 24,412 24,412 0% 50,230 48.6
7/1/2007 — 21,938 21,938 0% 43,640 50.3
The Metropolitan St. Louis Sewer District
Statistical Section
This part of the District’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
District’s overall financial health.
Contents
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
Page
Financial Trends
These schedules contain trend information to help the
reader understand how the District’s financial performance
and well-being have changed over time…………………………………….............82 - 83
Revenue Capacity
These schedules contain information to help the reader assess
the District’s most significant local revenue sources, the user charge….………84 - 90
Debt Capacity
These schedules present information to help the reader assess
the affordability of the District’s current levels of outstanding debt
and the District’s ability to issue additional debt in the future…………….…...91 - 93
Demographic And Economic Information
These schedules offer demographic and economic indicators
to help the reader understand the environment within which
the District’s financial activities take place………………………….……………..94 - 96
Operating Information
These schedules contain service and infrastructure data to
help the reader understand how the information in the
District’s financial report relates to the services the District
provides and the activities it performs……………………………………….……..97 - 98
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 82
2006 2007 2008 2009 2010
Net Position
Net investment in
capital assets 1,651,792$ 1,682,063$ 1,704,322$ 1,798,914$ 1,868,974$
Restricted 66,973 85,447 97,422 94,769 80,782
Unrestricted 247,958 278,803 324,218 293,934 257,894
Total Net Position 1,966,723$ 2,046,313$ 2,125,962$ 2,187,617$ 2,207,650$
2011 2012 2013 2014 2015
Net Position
Net investment in
capital assets 1,915,233$ 1,928,200$ 1,877,692$ 1,845,394$ 1,829,394$
Restricted 94,926 106,693 111,066 142,764 151,292
Unrestricted 186,860 175,010 251,300 279,794 297,430
Total Net Position 2,197,019$ 2,209,903$ 2,240,058$ 2,267,952$ 2,278,116$
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(000's)
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 83
Non-operating Income/(Loss)Change
Fiscal Operating Operating Operating Revenue/ before Capital Capital in Net
Year Revenues Expenses Income/(Loss) (Expense) Contributions Contributions Position
2006 206,803,022$ 175,889,536$ 30,913,486$ 25,966,334$ 56,879,820$ 53,069,364$ 109,949,184$
2007 202,205,532 183,810,507 18,395,025 36,885,268 55,280,293 24,309,430 79,589,723
2008 221,925,048 225,145,882 (3,220,834) 37,259,517 34,038,683 45,609,805 79,648,488
2009 249,725,358 212,177,779 37,547,579 (2,885,959) 34,661,620 26,993,385 61,655,005
2010 246,587,174 228,778,874 17,808,300 (17,560,670) 247,630 19,786,012 20,033,642
2011 219,444,257 244,503,099 (25,058,842) 4,329,032 (20,729,810) 10,098,552 (10,631,258)
2012 225,999,720 216,307,965 9,691,755 1,370,329 11,062,084 9,658,857 20,720,941
2013 241,946,337 230,158,434 11,787,903 832,056 12,619,959 17,534,919 30,154,878
2014 265,772,853 241,297,635 24,475,218 (3,682,863) 20,792,355 7,102,480 27,894,835
2015 290,386,589 256,521,148 33,865,441 (13,074,700) 20,790,741 12,996,754 33,787,495
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 84
Fiscal Sewer Service Licenses, Permits,
Year Charges, Net and Other Fees Other
2006 200,719,348$ 5,210,321$ 873,353$ 206,803,022$
2007 194,798,878 6,030,583 1,376,071 202,205,532
2008 216,618,417 4,345,961 960,670 221,925,048
2009 244,699,964 3,475,283 1,550,111 249,725,358
2010 241,495,357 3,084,552 2,007,265 246,587,174
2011 214,653,310 2,976,253 1,814,694 219,444,257
2012 220,765,581 2,683,823 2,550,316 225,999,720
2013 235,980,065 2,731,497 3,234,775 241,946,337
2014 257,343,344 6,562,607 1,866,902 265,772,853
2015 282,270,193 6,656,831 1,459,565 290,386,589
OPERATING REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Total
Operating
Revenues
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 85
Fiscal Employment Materials and Contracted Chemical
Year Costs Utilities Supplies Services Supplies
2006 56,817,238$ 11,963,002$ 11,602,773$ 38,472,414$ 1,089,564$
2007 58,731,260 11,362,805 12,335,366 40,879,286 1,260,789
2008 60,787,548 12,837,998 14,081,785 64,192,143 1,387,122
2009 70,475,293 12,587,699 14,855,989 48,783,447 1,589,650
2010 85,030,456 12,355,232 13,297,892 39,561,050 1,478,605
2011 84,264,583 14,170,680 11,010,962 42,854,613 1,415,826
2012 87,148,397 12,612,858 13,942,690 29,585,028 1,355,113
2013 91,939,437 14,533,557 10,355,992 31,133,523 1,455,725
2014 93,634,080 14,986,388 11,835,900 40,148,088 2,440,843
2015 96,832,265 16,500,052 17,596,766 46,020,308 3,964,165
Fiscal
Year Insurance Other
2006 2,816,795$ 9,147,931$ 131,909,717$ 43,979,819$ 175,889,536$
2007 2,915,236 10,604,787 138,089,529 45,720,978 183,810,507
2008 2,939,390 13,986,037 170,212,023 54,933,859 225,145,882
2009 2,746,119 13,769,203 164,807,399 47,370,379 212,177,779
2010 3,062,439 19,981,424 174,767,098 54,011,776 228,778,874
2011 2,578,316 21,353,854 177,648,834 66,854,265 244,503,099
2012 2,470,343 2,451,472 149,565,901 66,742,064 216,307,965
2013 2,696,416 8,013,944 160,128,594 70,029,840 230,158,434
2014 2,737,491 1,427,638 167,210,428 74,087,207 241,297,635
2015 2,791,622 (5,825,289) 177,879,889 78,641,259 256,521,148
OPERATING EXPENSES
LAST TEN FISCAL YEARS
Subtotal,
Expenses before
Depreciation Depreciation
Total Operating
Expenses
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 86
2006 2007 2008 2009 2010
Non-operating revenues
Property taxes levied by the District 23,210,982$ 24,401,167$ 27,512,070$ 2,129,475$ 1,401,100$
Investment income 7,610,461 16,946,145 17,476,621 13,115,519 6,553,760
Rent and other income 1,026,547 878,319 529,983 214,674 265,004
Total non-operating revenues 31,847,990 42,225,631 45,518,674 15,459,668 8,219,864
Non-operating expenses
Interest expense — — — 9,079,269 13,189,283
Clean Water Capital Improvement refund 95,372 15,000 4,313,973 — —
Net loss on disposal and sale
of capital assets 95,064 96,630 686,459 2,161,862 2,719,163
Non-recurring projects and studies 5,563,301 5,228,733 3,258,725 7,104,496 9,872,088
Total non-operating expenses 5,753,737 5,340,363 8,259,157 18,345,627 25,780,534
Net non-operating revenue (expense) 26,094,253$ 36,885,268$ 37,259,517$ (2,885,959)$ (17,560,670)$
2011 2012 2013 2014 2015
Non-operating revenues
Property taxes levied by the District 27,125,451$ 24,604,173$ 26,016,135$ 27,450,319$ 24,764,324$
Investment income 3,847,324 2,407,485 1,056,966 2,966,549 3,000,591
Rent and other income 442,968 294,591 293,159 302,506 37,321
Total non-operating revenues 31,415,743 27,306,249 27,366,260 30,719,374 27,802,236
Non-operating expenses
Interest expense 7,971,088 16,365,309 21,062,474 25,661,127 27,138,546
Net loss on disposal and sale
of capital assets 3,485,952 3,162,723 795,527 5,248,443 1,420,902
Non-recurring projects and studies 10,800,843 6,402,888 4,676,203 3,492,667 12,317,488
Legal claims 4,828,828 5,000 — — —
Total non-operating expenses 27,086,711 25,935,920 26,534,204 34,402,237 40,876,936
Net non-operating revenue (expense) 4,329,032$ 1,370,329$ 832,056$ (3,682,863)$ (13,074,700)$
Fiscal Year
NON-OPERATING REVENUES AND EXPENSES
LAST TEN FISCAL YEARS
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 87
Type of Monthly Charge Unmetered c Residential c Non-Residential
Wastewater User Charge
Base Charge 16.25$ 16.25$ 16.25$
Compliance Charge a
Tier 1 9.00
Tier 2 43.55
Tier 3 92.75
Tier 4 136.00
Tier 5 179.25
Volume Charges
per Ccf b — 2.82 2.82
per room 1.83 — —
per water closet 6.88 — —
per bath 5.73 — —
per separate shower 5.73 — —
Extra Strength Surcharges a
SS over 300 ppm per ton — — 244.03
BOD over 300 ppm per ton — — 620.14
COD over 600 ppm per ton — — 310.07
Stormwater Service Charge
per account: single residential unit 0.24 0.24 0.24
per account: multi-residential unit 0.18 0.18 0.18
Notes:
a Applicable only to non-residential customers.
b Ccf = Hundred cubic feet.
c User charges for certain low income residential users will be
50 percent of the regular user charge.
Source: Finance Department
Metered
USER CHARGE RATES
As Of June 30, 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 88
2006 a 2007 2008 b 2009 2010 c
Residential:
Single Family/Unit a 271.44$ 271.44$ 344.88$ 1 344.88$ 1 351.12$
Multi-Family/Unit a 228.00 228.00 299.76 299.76 305.04
Commercial/Industrial:
Service Charge/Unit 248.28 248.28 457.20 457.20 486.60
Sanitary Sewer Usage Charge/100 CCF 1.81 1.81 1.88 1.88 1.92
Storm Sewer Usage Charge/100 sq. feet of impervious area — — — 0.12 0.14
Extra Strength Surcharges:
Suspended Solids ("SS") over 300 parts per million/ton 218.90 218.90 218.90 218.90 218.90
Biological Oxygen Demand ("BOD") over 300 parts per million/ton 461.44 461.44 529.90 529.56 551.52
Chemical Oxygen Demand ("COD") over 600 parts per million/ton 230.72 230.72 264.85 264.78 275.76
2011d 2012 2013 e 2014 2015
Residential:
Single Family/Unit a 333.60$ 347.64$ 379.56$ 421.08$ 434.76$
Multi-Family/Unit a 285.12 296.28 324.12 360.36 434.04
Commercial/Industrial:
Service Charge/Unit 507.00 525.60 593.35 414.59 352.87
Sanitary Sewer Usage Charge/100 CCF 2.02 2.11 2.28 2.50 2.82
Storm Sewer Usage Charge/100 sq. feet of impervious area — — — — —
Extra Strength Surcharges:
Suspended Solids ("SS") over 300 parts per million/ton 222.62 231.35 231.35 231.35 244.03
Biological Oxygen Demand ("BOD") over 300 parts per million/ton 596.72 620.14 620.14 620.14 620.14
Chemical Oxygen Demand ("COD") over 600 parts per million/ton 298.36 310.07 310.07 310.07 310.07
Notes:1 Years 2008-2010 saw an impervious rate charge that averaged $36 per year per customer. This was discontinued in 2011.a Ordinance 12019, effective July 1, 2005, changed wastewater rates.b Ordinance 12561, effective January 1, 2008, changed wastewater rates. Ordinance 12560, changed stormwater rates, effective March 1, 2008.c Ordinance 12754, effective July 1, 2009, changed wastewater rates.d Ordinance 13021, effective July 1, 2010, changed wastewater rates through FY 2012.e Ordinance 13402, effective July 1, 2012, changed wastewater rates through FY 2016.
Source: Finance Department
Fiscal Year
Fiscal Year
SEWER USER CHARGES (COMPOSITE-ANNUAL)
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 89
Single Multi-
Fiscal Family Family Non-Total
Year Residential Residential Residential Accounts
2006 362,043 44,700 25,700 432,443
2007 362,569 44,875 25,647 433,091
2008 391,181 54,862 32,336 478,379 a
2009 388,791 51,441 32,161 472,393 a
2010 387,670 50,867 31,939 470,476 a
2011 362,739 43,471 24,702 430,912 b
2012 360,354 41,648 24,568 426,570
2013 359,243 41,117 24,441 424,801
2014 358,928 40,951 24,297 424,176
2015 359,317 41,131 24,389 424,837
Source: Finance Department
a Due to the implementation of the impervious area charge in 2008,
approximately 46,000 additional stormwater only accounts were
billed each month. This charge was challenged and a court
decision was entered on 7/9/10. Based on that decision the
impervious charge was discontinued in FY '11.
b The number of accounts were revised as stormwater accounts were underreported.
NUMBER OF CUSTOMERS BY TYPE
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 90
Customer Amount %
InBev Anheuser-Busch 5,320,535$ 1.88%
Washington University 1,833,320 0.65%
City of St. Louis 1,639,923 0.58%
Mallinckrodt 1,140,542 0.40%
Boeing Co.1,025,583 0.36%
Sigma-Aldrich 1,018,054 0.36%
GKN Aerospace N America Inc.874,295 0.31%
Jost Real Estate 817,766 0.29%
BJC HealthCare 729,819 0.26%
Monsanto 708,875 0.25%
Subtotal (10 largest)15,108,712 5.35%
Balance from other customers 267,161,481 94.65%
Grand totals 282,270,193$ 100.00%
Customer Amount %
Anheuser-Busch 8,192,292$ 4.08%
Mallinckrodt 1,488,243 0.74%
Washington University 1,350,620 0.67%
City of St. Louis 1,077,451 0.54%
Zoological Gardens 694,355 0.35%
Chrysler Corporation 661,330 0.33%
Sigma-Aldrich 609,368 0.30%
ABC Dairy, Inc.546,200 0.27%
Rockwood Pigments NA, Inc.545,495 0.27%
St. Louis Coca-Cola Bottling Co.545,079 0.27%
Subtotal (10 largest)15,710,433 7.83%
Balance from other customers 185,008,915 92.17%
Grand totals 200,719,348$ 100.00%
Source: Budget Division after data is accumulated for the GFOA report
Fiscal Year 2006
User Charges
TEN LARGEST CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
User Charges
Fiscal Year 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 91
Unamortized As a Share
Fiscal Subordinate Capital Premium, Debt of Personal
Year Senior Subordinate Direct Loans Lease Loss, Net Amount Per Capita Income
2006 173,500,000$ 205,760,000$ 680,538$ —$ 1,597,984$ 381,538,522$ 282 0.37
2007 231,995,000 213,652,500 337,730 — 4,189,928 450,175,158 330 0.42
2008 230,485,000 206,522,500 269,299 — 3,974,435 441,251,234 324 0.67
2009 258,965,000 235,932,500 215,790 4,130,000 2,640,838 501,884,128 373 0.81
2010 342,370,000 224,505,000 31,017,371 7,263,687 1,457,910 606,613,968 446 1.00
2011 340,590,000 212,655,000 25,259,899 6,095,981 862,654 585,463,534 431 0.97
2012 390,880,000 200,692,500 63,727,722 3,096,139 5,805,206 664,201,567 484 1.09
2013 594,715,000 188,600,000 93,751,658 — 56,252,401 933,319,059 660 1.45
2014 740,655,000 184,075,000 116,090,820 — 82,274,845 1,123,095,665 852 1.86
2015 736,775,000 171,455,000 148,279,465 — 78,591,961 1,135,101,426 860 1.83
Notes:
Calculation of "Per Capita" for 2011 through 2013 is based on estimated population levels.
Calculation of "As a Share of Personal Income" for 2011 through 2013 is based on estimated income levels.
In fiscal year 2012, a decision was made to discontinue considering SRF receivable amounts as liabilities.
The liability is now recorded when the funds are received.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce,
and the U.S. Census Bureau
LAST TEN FISCAL YEARS
Revenue Bonds
Total
RATIOS OF OUTSTANDING DEBT BY TYPE
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 92
Amount of Debt Percentage of Debt
Governmental Unit Debt Outstanding within District Boundary within District Boundary
City of St. Louis 23,010,000$ 23,010,000$ 100.0%
St. Louis County 105,615,000 104,770,080 99.2
Municipalities 105,845,275 102,495,275 96.8
City of St. Louis School District 301,701,622 301,701,622 100.0
St. Louis County School Districts 1,300,921,604 1,285,891,204 98.8
Fire Districts 112,865,484 106,910,484 94.7
1,949,958,985$ 1,924,778,665 98.7%
Total Direct Debt 1,135,101,426
Total Direct and Overlapping Debt 3,059,880,091$
Sources:
City of St. Louis, Office of Comptroller
St. Louis County, Department of Revenue
St. Louis Public Schools, Financial/Treasurer Office
Missouri Department of Education, School Finance
Polled Governments
Polled Fire Districts
Note: Although the District comprises all of the St. Louis City and most of St. Louis County, it does not entirely match the County's boundaries.
The calculation of overlapping debt is based on the percentage that a political jurisdiction's territory lies within the District's territory.
These percentages are weighted against the debt outstanding thus providing the amount of debt within District Boundary.
COMPUTATION OF OVERLAPPING DEBT
As Of June 30, 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 93
Less:
Operating
Non- Expenses Net
Fiscal Operating operating Gross (excluding Available
Year Revenues Revenues Revenues depreciation) Revenues
2006 205,554,460$ 6,135,347$ 211,689,807$ 131,909,717$ 79,780,090$
2007 200,963,085 13,501,751 214,464,836 138,089,529 76,375,307
2008 208,981,377 13,281,919 222,263,296 142,725,186 79,538,110
2009 209,972,662 10,283,104 220,255,766 138,971,881 81,283,885
2010 204,697,929 4,908,296 209,606,225 145,598,505 64,007,720
2011 217,011,360 3,202,219 220,213,579 160,572,145 59,641,434
2012 224,882,086 2,058,300 226,940,386 135,232,302 91,708,084
2013 240,597,715 956,664 241,554,379 146,372,419 95,181,960
2014 264,422,401 2,670,333 267,092,734 153,221,914 113,870,820
2015 288,835,877 2,555,654 291,391,531 163,287,562 128,103,969
Fiscal Coverage
Year Principal Interest Total Ratio
2006 5,407,500$ 13,835,332$ 19,242,832$ 4.1
2007 7,817,500 16,512,429 24,329,929 3.1
2008 8,640,000 17,694,791 26,334,791 3.0
2009 12,110,000 17,503,892 29,613,892 2.7
2010 13,022,500 20,187,151 33,209,651 1.9
2011 14,576,800 20,140,021 34,716,821 1.7
2012 16,540,200 22,517,473 39,057,673 2.3
2013 18,749,700 31,191,190 49,940,890 1.9
2014 10,037,200 34,399,261 44,436,461 2.6
2015 20,252,200 41,596,192 61,848,392 2.1
Fiscal Coverage
Year Principal Interest Total Ratio
2006 1,500,000$ 8,165,734$ 9,665,734$ 8.3
2007 1,505,000 9,369,084 10,874,084 7.0
2008 1,510,000 11,067,634 12,577,634 6.3
2009 1,520,000 11,677,272 13,197,272 6.2
2010 1,595,000 13,396,341 14,991,341 4.3
2011 1,780,000 15,467,269 17,247,269 3.5
2012 1,960,000 16,488,587 18,448,587 5.0
2013 3,805,000 24,451,656 28,256,656 3.4
2014 4,060,000 30,161,408 34,221,408 3.3
2015 3,880,000 34,472,415 38,352,415 3.3
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Senior and Subordinate Debt Service
Senior Debt Service
Note: The methodology used to calculate the net available revenues and the coverage ratio was adjusted during fiscal year 2013
and all previous years were restated for comparative purposes. The 2013 change in methodology consisted of removing agency
fees, previously reflected as a deduction from net available revenues, and now combining them with interest in the debt service
section. Additionally, in fiscal years 2010 and 2011, the change in methodology consisted of removing the Build America Bond Tax
Credit from the pledged revenue section and reapplying the credit to interest expense in the debt service section. This was made
to ensure consistency with fiscal years 2012 and 2013.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 94
Per
Personal Capita Total
Fiscal Income Personal Labor Number of
Year Populations (millions) Income City County State Force Households (1)
2006 1,347,691 57,660$ 42,784$ 7.5 5.1 5.0 723,627 551,388
2007 1,349,778 59,200 43,859 7.5 5.1 5.0 723,627 551,388
2008 1,348,462 62,135 46,079 7.9 5.9 6.0 690,006 551,388
2009 1,339,011 61,947 46,263 11.5 9.7 9.5 681,801 551,388
2010 1,356,289 60,792 44,822 12.3 9.4 9.3 682,165 551,388
2011 1,357,035 60,420 44,523 11.8 8.9 9.0 692,071 546,744
2012 1,360,085 60,283 44,323 9.7 6.9 7.0 672,945 546,744
2013 1,328,610 60,399 45,460 10.5 7.3 7.1 665,086 543,851
2014 1,318,610 60,968 46,237 9.6 6.9 6.6 666,200 543,991
2015 1,319,295 61,910 46,926 7.1 5.5 5.8 703,317 543,945
Notes:
(1) The number of households was taken from http://quickfacts.census.gov/qfd/states/29000.html. The 2015 figure is based
on 2013 data. The 2011-2012 figures are based on the 2010 census. Information for prior years are unavailable; therefore,
the 2000 census information is used for the other years in this table.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce,
and Missouri Economic Resource and Information Center (MERIC)
Footnotes- http://www.bea.gov/regional/reis/scb.cfm
http://www.missourieconomy.org/indicators/LAUS/default.aspx
http://quickfacts.census.gov/qfd/states/29000.html
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment Rate
Saint Louis
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 95
Percentage Percentage
Employer Employees (1)of Total Rank Employees (1)of Total Rank
BJC HealthCare 24,082 4% 1 21,814 3%1
Boeing, Integrated Defense Systems 15,000 2% 2 16,259 2%2
Washington University in St. Louis 14,170 2% 3 12,505 2%3
Scott Air Force Base 13,000 2% 4
SSM Healthcare 12,697 2% 5 11,905 2%4
Mercy 12,013 2% 6 8,699 1%7
Schnuck Markets, Inc.11,008 2% 7 10,700 2%5
Wal-Mart Stores Inc.10,550 2% 8
McDonald's Restaurants of St. Louis 9,500 1% 9
City of St. Louis 7,463 1% 10 7,632 1%9
United States Postal Service 7,916 1%8
SBC Southwestern Bell Missouri 9,920 2%6
Saint Louis University 7,108 1% 10
129,483 20%114,458 17%
Notes:
(1) Employees are for the St. Louis area which includes several counties not served by the District.
Sources:
St. Louis Business Journal's Book of Lists 2015
St. Louis Business Journal's Book of Lists 2006
Fiscal Year 2006Fiscal Year 2015
PRINCIPAL EMPLOYERS (ST. LOUIS METROPOLITAN AREA)
CURRENT YEAR AND NINE YEARS AGO
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 96
Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Administrative 118 125 131 133 131 124 129 124 122 129
Office/Clerical 88 86 92 94 89 84 85 86 82 84
Plant Operation & Laboratory 233 234 239 237 249 241 244 249 252 236
Engineering & Technical 119 122 133 144 151 147 153 148 151 155
Sewer Construction
& Maintenance 258 271 276 301 315 296 311 324 328 345
Total Employees 816 838 871 909 935 892 922 931 935 949
Source: Human Resources Department
EMPLOYMENT LEVEL
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 97
Average Sewage
Fiscal Treatment in Millions
Year of Gallons per Day
2006 291.3
2007 313.4
2008 363.7
2009 394.7
2010 395.5
2011 370.6
2012 300.0
2013 326.7
2014 273.8
2015 327.5
Source: Operations Department
AVERAGE FLOW
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 98
2006 2007 2008 2009 2010
Miles of sewers 9,630 9,764 9,723 9,812 9,900
Number of treatment plants 8 8 7 7 7
Treatment capacity (MGD) a 413 426 428 423 423
Annual engineering maximum plant capacity
(millions of gallons)150,745 155,490 154,395 154,395 154,395
Amount treated annually (millions of gallons)106,339 114,391 132,751 144,066 144,358
Unused capacity (millions of gallons)44,406 41,099 21,644 10,329 10,037
Percentage of capacity utilized 71% 74% 86% 93% 93%
2011 2012 2013 2014 2015
Miles of sewers 9,843 9,738 9,578 9,563 9,531
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 528 528 528 533 538
Annual engineering maximum plant capacity
(millions of gallons)192,629 192,629 192,629 194,454 196,279
Amount treated annually (millions of gallons)135,269 109,518 119,253 99,945 119,547
Unused capacity (millions of gallons)57,360 83,111 73,376 94,509 76,732
Percentage of capacity utilized 70% 57% 62% 51% 61%
Sources: Operations Department and Engineering Department
Note:
a Million gallons per day.
Fiscal Year
Fiscal Year
OPERATING AND CAPITAL INDICATORS
LAST TEN FISCAL YEARS