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HomeMy Public PortalAboutExhibit MSD 140 - Rate Proposal OverviewExhibit MSD 140 Metropolitan St. Louis Sewer district Rate Proposal Overview MSD is Two Utilities Wastewater Service O Collecting and treating the "used" water from sinks, tii its and floor drains O Travels through miles of pipes to one of seven treatment plants o Treated to high standards b-fore being rturned to our region's waterways. ® • astewater service is currently funded by r.tes bas d upon water usage and account type Stormwater Service • Collecting the rain and other water drainage that is not naturally absorbed in the soil on your property • Addressing regulatory requirements regarding impacts of stormwater runtff on receiving stream water quality • Stormwater service is currently funded by a flat fee and small property taxes, based upon geographic location 2 MSD's Rate Commission Established in 2000 to provide public input into how ; S i sets its rates • 15 organizations representing a brsad cross- section of the community MSD serves #"reviews ail proposed rate changes under charter - defined parameters, and renders a recommendation to the Board of Trustees • The 2015 Rate Commission will consider a proposal for MSD rates for fiscal years 2017-2020 (July 1, 2016-June 30, 2020) 3 Current Rates, Progress under FY13-16 rate cycle v_ ENT WAS TEWATER RATES 1 11 WASTEWATER: current 2O132O16 Ratf P'oposal Statu' • Capital Improvement & Repiacement Program - On time and under budget: $971,015,0001 identified in FY13-16 Rate Proposal 0 Plan to appropriate $889,63210001 (95%) of amount identified in FY13-16 Rate Proposal Operations & Maintenance ® on time and under budget $716 M included in Rate Proposals $700 M appropriated [projected]' Wastewater Operations Accomplishments • 61,737 manholes inspected O 6,651 manholes rehabilitated 1,910 miles of sewer line inspected • 66% (2/3) reduction in basement backups since cleaning program began 1 Appendix 7.7.1 5 Proposed Rate Changes PROPOSED WASTEWATER RATES rim E-:T is I 6 WASTEWATER: proposed Wa ewater Rate Change Drivers MSD Project Clear: Regulatory Requirements Get the Rain Out Repair & Maintain Build System Improvements 9 Financial Stability and Responsibility a Maintaol AA Bond Rating WASTEWATER: proposed Wa ewater Rate Proposal Key Financial Components $1.5B Capital Program' WISED Fisca . ear Program Level' 2017 $332,511,688 2018 2019 $ 347, 297,471 $373,664,090 $439,398,796 Total 4-Year Program $1,492,872,045 • $736M Operations & Maintenance Cost2 • $477M Total Debt Service Cost3 Table 4-7 2 Table 4-6 3 Table 4-9 8 WASTEWATER: proposed Additional Use of Deb? Fund next four years through a combination of cash and bonds • Total Cash Financing: $415M' • Total Bond Financing: $1.11131 ▪ ;►Sssumes $900 M additional bond authorization • Total debt authorized $2.6202 Billion • 100% of debt is used to fund the Capital Improvement & Replacement Program IIT/ `l 17 1 Table 4-8 g 2 Total Bonds FY2004-2020 WASTEWATER: proposed Proposed FY17-20 Wastewater Projects 502 �Q Wastewater Planning, Sanitary Sewer Design, & Overflows (SSOs) Construction Projects removed1 Wastewater Construction Projects Miles of Storage & Conveyance Tunnels designed 'One CSO will be removed during this rate cycle, in addition to the design and planning for future removals. The Green Infrastructure (Rainscaping) program is also designed to alleviate CSOs to the Mississippi. 10 WAST EWATE Ra proposed Proposed FY17-20 Wastewater Projects Legend • Wastewater Project Location J 1 Appendix 7.2.2 Combined Sewer Area 11 WASTEWATER: proposed _ imposed Wastewater Operations & Maintenance 6en .000 Manholes Inspected) I.OV0 Manhole Rehabilitations Miles of sewer inspected with CCTV 3,81 Miles of sewer cleaned 50 Miles of sewer 12% per year, once per 50 year schedule rehabilitation Meets Consent Decree requirements for inspection, cleaning, and rehabilitation WASTEWATER: proposed Wr 'water Funding Options Option A Funded by Cash & Debt • $900 M additional bonds © $1.5 Billion 4-Year Wastewater Capital Projects vg. Single Family Wastewater Sewer Bill' $$$ % Chg. FY16 $40.72 13.1% FY17 $44.72 9.8% FY18 $49.56 10.8% FY19 $54.91 10.8% -FY20 $60.86 10. °/® Table ES-4 7 Ccfs/month Voters Reject Bonds Option B Funded by Cash • Zero use of additional bonds ® $1.5 Billion 4-Year Wastewater Capital Projects • Avg. Single Family Wastewater Sewer Bill2 $$$ % Chg. FY16 $40.72. 13.1% FY17 $44.72 9.8% FY18 $73.80 65.0% FY19 $83.46 1 3.1 FY20 $96.01 15.0% 2 Table 4-25 7 Ccfs/month 13 Stormwater service, funding, and geographic disparities c„Furvci r STORM 1ATER SERVICE STORMWATER: current Current Stormwater Services & Funding $0.241 fee + $0.01 !NAL Abbasid Capita $0.241 fee + $0.0197 + $0.0682-7. AR t thgr Own p@irstial operation* and prliaintqinance /-/ O Local, State/ ad Federal $0.241 fee + $0.0197,,C regulatory compliance O Data Collection and Tracking o Emergency reapon Se 0.10 15 'for customers also receiving wastewater sewer service STORM ATER: current Average Cost per Customer $0.241 fee Average Ann $2.88 + $5.05 + . ,6.99 • $53.322 ©o10 $0.241 fee + $0.0197 + • Average Annual Residential Fee +Tax: $2.88 + $5.05 + $18.40 =$26.332 $0.2 1 fee ± $0.0197 Average Annual' sideflti i Fee + QX 2.88 + $5.06 RI7.32 ifor customers also receiving wastewater sewer service 2for a single-family home appraised value of $142,100, at 19% Residential assessment rate 16 STORMWATER: current fd I] Compliance Activities MSD ensures compliance with all focal, state, and federal stormwater regulations, including o 0 Plan Revew and Permitting • Complaint Investigaon and Data Collection 0 Emergency Response in critical heafth and safety situations Stogy Iliwater Regulatory ri=i _�; 17 STORMWATER: current Creeks and BMPs/Ba in Re re 1154 Miles of Creeks in Red Area • 263 BPs/ Basins in Red Area Currently fended ST. CHARLES COUNTY LIED shi. (2838) Creaks (1154 ram) r ..PotI Amour Bou4sry St Lout County SON U MAOXQN COUNTY ST. C4AIRCOUNTY 18 STORMWATER: current iblic St: -m Syste in Re Are • 1362.99 Mies of Storm Sewers in the Red Area 0 Currently not funded LOWED • • PANG Storm System (1381 miles) L- WSJ Boundary -,� Annexed Boundary 8L Louis Carly Sr. CLAM COUNTY 19 Proposed Revenue Changes ST( kMW? 'slt SEIt . ICE V%1. 20 STORMWATER: proposed Stormwater Revenue Proposal iirgau Financial Components • 4-year Operations & Maintenance cost of $90 18M' 6-year $97.6M Capital program2 Table 5-2, FY17-20 2 Table 5-5, FY15-20 21 STORMWATER: proposed Stormwater Revenue Chance Drivers Necessary maintenance of public storm sewer system Initiate limited funding for necessary 6-year District -wide stormwater capital mprovements 22 STORMWATER: proposed Proposed Stormwater Operating Costs P Total 0/0 Change FY16 16 [projected] FY17 FY18 FY19 FY20 $16O M $20.7 M $23.7 M $22.8 M $23.5 M 6.3% 30.0% 14.5% 3.9° 3.1% 1 Table 5-2 23 STORMWATER: proposed Propos FYI7-2( Storm r Projels Green Area: O Projects: 64 O Cost: $24,968,200 ® Y 0Iow Area: • Projects: 47 O Cost: $17,450,000 ® Red Area: ® Projects: 59 ® Cost: $7,485 0 D Co a o. Legend • Stormwater Service Level: Green O Stormwater Service Level: Yellow Q Stormwater Service Level: Red 1 Append €;: 7.5.2 OMCI Tax Districts Annexed Area Original Area t St. Lams City 24 STORM TER: proposed ropused Stormwater Revenue Structure Type of Charge OMCI Sub -district Taxes (Green area per $100 Assessed Value) Stormwater O&M Tax (Yellow area per $100 Assessed Value) District -wide Regulatory Tax (Red area per $100 Assessed Value) District -wide Stormwater Tax (proposed) (Red area per $100 Assessed Value) 11:=1WE $0.0682 $0.0197 N/A Fixed Monthly Charge Single -Family Residential $.24 ($/unit) Fixed Monthly Charge - Multi -Family .Residential $.18 ($/unit) $0 $0..0197 $0.100 $0 Total Fees $.18-.24 $0 1 Table 5-1 25 STORMWATER: proposed Proposed en Green A Tax Rate Current $.0197 + $.0682 + $.10 (up to) Proposed $.10 Total $.1197 C -$19. 75/year 41.92/year Change in total t.� -0.5% leer $100 of assessed valuation, based upon average ' 26 a raisal in green area of $184,500 1 Table. PP STORMWATER: proposed proposed Re.venu Yellow LAI Current Proposed $.10 Total $.1197 Tax Rate $ . 0197 + $12 ..5 Vyea r $.0682 Change in total tat: 1 3% 1per $100 of assessed valuation, based upon average appraisal in yellow area of $70,800 1 Tabl 27 Proposed R'Tvenu Red Are 41111111. Tax Rate $0.0197 STORMWATER: proposed Current $10.52/ year Proposed $0.10 +$50.08) year Total $.1197 $60.60/ year Change in total tax: 1 2% ktki, I fr/ 'per $100 of assessed valuation, based upon average 2E appraisal in red area of $266,700 1 Table ES-6 Annualized impact of Wastewater and Stormwater revenue changes TO CAL CUSTOMER COST WASTEWATER + STORMWATER 7 29 WASTEWATER + STORMVV'ATER: proposed Total Propose' Annual Customer Cost Single -Family Residential FY16 Proposed Average Annual Costl Total Annual Cost $522.54 Percent Change N/A Average Annual Cost without Bonds2 Total Annual Cost $522.54 Percent Change N/A FY17 $577.92 +10.6% $577.92 +10.6% FY18 $636.00 +10.0% $926.88 +60.4% FY19 $700.20 +10.0% $1,042.80 +12.5% FY20 $771.60 +9.2% $1,193.40 +14.4% 1Table ES-4, Table ES-6 2 Table 4-25, Table ES-6 30 WASTEWATER + STORMWATER: proposed Total Proposed Annual Customer Cost Low -Income Residential Proposed Average Annual Costl Total Annual Cast FY16 $261.83 Percent Change N/A Average Annual Cost Without Bonds2 Total Annual Cost $261.83 Percent Change FY17 FY18 FY19 FY20 Pirov-Awil $283.77 $312.81 $344.97 $380.61 +8.4% +10.2% +10.3% +10.3% 1Table ES-4, Table ES-6 2 Table 4-25, Table ES-6 $283.77 $458.2.5 $516.21 $591.57 +8.4% +61.5% +12.6% + 14, 6% 31 WASTEWATER + STORMWATER Anticipated Rate Process P cic 3s • Proposal submitted to MSD Rate Commission February 26, 2015 • Final wastewater rate increase of April 2012 rate plan implemented July 1, 2015 . Rate Commission Recommendation due to Board by August 2015 MSD Board Approves Revenue Plan - October - December 2015 Rate Commission • To submit formal comments to the Rate Commission for consideration in their process, please address to: • Email: jfenton@stlmsd.com ® Mail: 2350 Market Street, St. Louis MO 63103 Attn: Eric. Schneider, Secretary to Rate Commission