HomeMy Public PortalAboutExhibit MSD 16O April 2011 Finance Committee MinutesExhibit MSD 160
Journal of the 147th Meeting of the
Finance Committee of the
Metropolitan St. Louis Sewer District
April 12, 2011
The 147th meeting of the District's Finance Committee called to order at 8:20 A.M. at
District's Headquarters located at 2350 Market Street, St. Louis, MO 63103, Room
109. In attendance were the following individuals:
District Trustees Staff & Attendees
Mr. Bob Berry, Chair
Mr. James Buford, Trustee
Mr. David Visintainer, Trustee
Mr. Eddie Ross, Trustee
Mr. Jeff Theerman (MSD)
Mr. Karl Tyminski (MSD)
Mrs. Jan Zimmerman (MSD)
Ms. Barbara Mohn (MSD)
Mr. Brian Hoelscher (MSD)
Mr. Jonathon Sprague (MSD)
Ms. Vickie Edwards (MSD)
Ms. Susan Myers (MSD)
Ms. Janice Fenton (MSD)
Mr.
Mr.
Mr.
Mr.
Ms.
Ms.
Mr.
Mr.
Mr.
Paul Leightner (MSD)
Bart Hager (MSD)
Lance LeComb (MSD)
Bob Breig (MSD)
Theresa Bellville (MSD)
Kathleen Langevin (MSD
Mike Gindler (MSD)
Ralph Wafer (MCE)
Tom Ratzki (B&V)
The Finance Committee met on April 12, 2011. In attendance were Trustees Berry, Buford
Ross and Visintainer. The Committee approved the minutes from the March 8th Committee
Meeting.
Mr. Theerman introduced Mr. Ralph Wafer from the Missouri Coalition for the
Environment (The Coalition). Mr. Wafer attended the meeting on behalf of The
Coalition as an applicant to fill an existing vacancy on the District Rate Commission.
Mr. Wafer was interviewed by the Trustees present. Mr. Wafer stated he also serves
on the Coalition's Board and welcomed the opportunity to participate in the rate
setting process. Mr. Buford moved that Mr. Wafer's appointment be presented to the
full Board for consideration. The motion was unanimously approved. This is Item # 44
on tonight's agenda.
Ms. Zimmerman presented the FY12 District Budget. Ms. Zimmerman indicated a
$161 million Total Operating Budget is proposed for FY12 and represents a $5 million
or 3.2% increase over the current FY11 budget. This proposed Operating Budget
consists of $156 million for District operations, $3.5 million for the water back-up
insurance program and $1.5 million for the Improvement Fund. Ms. Zimmerman
explained the $5 million increase primarily reflects a $2.3M increase in the District
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employee pension contribution, a 1.5% Staff wage increase totaling $1.6 million and
$1 million to fund a force main asset management program to address anticipated
regulatory requirements. Ms. Zimmerman explained, however, that these increases
are offset by all other components of the Operating Budget remaining relatively
unchanged from FY11. Ms Zimmerman indicated the 3.2% increase in the proposed
FY12 Operating Budget is consistent with recent inflation which has averaged 3.0%
over the last 3 years.
Ms. Zimmerman reported the proposed FY12 Operating Budget consists of $89
million in Personnel Services which represents 55% of the District's total Operating
Budget. The majority of this expense includes employee wages and benefits,
temporary help, overtime and pension costs. The FY12 Operating Budget also
includes a proposed 1.5% wage increase costing $3 million. This cost, however, is
partially offset by $1.8 million associated with the elimination of 37 unfilled positions.
The proposed FY12 Supplies and Utilities budgets are $12 million and $14 million,
respectively. The proposed Contractual Services budget is $40 million. This budget
primarily funds sewer charge billing and collection services, litigation costs and
services and repairs associated with the sewer cleaning program.
Mr. Hoelscher presented the FY12 Preliminary Budget Supplement that detailed the
Capital Improvement and Replacement Projects (CIRP). The proposed total FY12
CIRP is $154 million, a $21 million or 17% increase over FY11. The proposed CIRP
consists of $146 million for wastewater projects and $9 million for stormwater.
Ms. Zimmerman then presented a summary of the Total FY12 District Budget. The
total proposed District Budget is $378 million and consists of the following: a $161
million Operating Budget, $46 million for the District's Debt Service obligations, $18
million for Stormwater Operations and Maintenance and a CIRP of $154 million. The
proposed Total District Budget is $25 million or 7% over the current year and primarily
reflects the $21 million increase in the CIRP, the $5 M increase associated with the
proposed wage increase and related employee benefits and a $4 million increase in
Debt Service. These increases are partially offset by a $5 million decrease in
stormwater services associated with the loss of the impervious charge revenue.
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Ms. Zimmerman reported the proposed FY12 Total District Budget will again be
primarily funded by wastewater sewer charge revenue projected to be $224 million or
71% of the District's total revenue. Projected FY12 Tax revenue of $25 million, will be
used to fund the District's stormwater program and $40 million in bond proceeds are
dedicated to funding the CIRP. Investment income is projected to be $20 million and
used to fund various other District operations. Total District revenue is expected to be
$42 million or 12% below the current year. This decrease solely represents the
issuance of fewer bonds than in prior years as the District's total voter approved debt
authorization is exhausted. The District also anticipates using $62 million in available
fund balance for CIRP projects.
Ms. Zimmerman indicated a complete copy of the FY12 District Budget is available on
the MSD website.
A public hearing to present the proposed FY12 District Budget will be held at 7:00
p.m. on May 5, 2011. The hearing will be in Room 109 at the District's 2350 Market
Street location. The budget is scheduled for introduction at the May 12th Board of
Trustee Meeting.
The meeting adjourned at 9:50 a.m.
This concludes the Finance Committee Report.
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