HomeMy Public PortalAboutExhibit MSD 2 - Rate Change Public NoticeMetropolitanSt. LouisSewer District
MSD RATE CHANGE NOTICE
The Metropolitan St. Louis Sewer District (MSD) has referred to its Rate Commission a proposal for wastewater rates and stormwater taxes for fiscal year 2017
through fiscal year 2020 (July 1, 2016 through June 30, 2020). The proposal addresses increases in wastewater rates and a change in stormwater taxes. These pro-
posed changes would apply to all MSD customers.
RATE COMMISSION PROCESS: In 2000, changes to MSD’s Charter were approved by area voters that required the creation of an independent Rate Commission. Com-
posed of 15 member organizations representing a broad cross-section of MSD’s customers and the community it serves, the Rate Commission is designed to provide public input into how rates are set.
The Rate Commission process includes multiple public hearings and can last up to 165 days. This process began when a rate change proposal was formally referred to the Rate Commission by MSD staff
on Thursday, February 26, 2015. Over the next several months, the Rate Commission will review these rates and hold hearings to gather public input.
WASTEWATER RATES: Wastewater rates must be sufficient to continue MSD’s ongoing multi-billion dollar, multi-decade capital construction program. From fiscal year 2017 through fiscal
year 2020, MSD proposes spending approximately $1.5 billion on construction and related work. Largely driven by state and federal regulatory requirements, this work will reduce overflows
into area waterways, alleviate basement backups, and help ensure water quality in the St. Louis area’s rivers and streams.
As of July 1, 2015, the average customer owning a single-family home will pay $40.72 per month for wastewater services. MSD is proposing four rate increases between July 2016 and July
2019 to fund its operations and capital construction program. These increases will raise the average single-family wastewater rate to $60.86 per month.
STORMWATER TAXES: MSD provided stormwater services are funded by a
patchwork of various property tax levies and a flat stormwater fee. The amount of
an individual tax levy ranges from $.0197 to $.1879 per $100 of assessed value. The
exact levy is dependent on where a property is located within MSD’s service area. In
addition to the tax levies, there is a flat $.24 or $.18 per unit for multi-family storm-
water fee charged monthly to each MSD customer. This funding structure does not
provide for consistent and equal stormwater service amongst all MSD customers, and
is not sustainable in the long-term.
MSD proposes a change to this funding structure that would require voter approval.
The change involves continuation of an existing $.0197 levy that covers the entire
service area;
a reduction to
$.0000 of all
other tax levies;
the elimination
of the monthly
$.24/$.18 storm-
water fee; and the
implementation
of a $.10 levy for
all property with-
in MSD’s service
area. The $.0197
levy would fund
compliance ac-
tivities called for by state and federal
regulatory requirements. The $.10
levy would provide a uniform level of
stormwater service for all MSD cus-
tomers, regardless of where they live
in the service area.
For more information on the rate
proposal or the Rate Commission
Process, please visit MSD’s website
at www.stlmsd.com or contact Jan
Zimmerman, Director of Finance, at
(314) 768-6299.
Comparison of Existing and Proposed Wastewater Rates
Type of Monthly Charge (per Bill)Existing FY2016 (1)FY2017 FY2018 FY2019 FY2020
Base Charge
Billing & Collection Charge 3.55$ 3.70$ 5.47$ 6.06$ 6.72$ 7.45$
System Availability 12.70 14.55 14.05 15.57 17.25 19.11
Total Base Service Charge 16.25$ 18.25$ 19.52$ 21.63$ 23.97$ 26.56$
Compliance Charge (2)
Tier 1 9.00$ 2.15$ 2.86$ 2.95$ 3.05$ 3.14$
Tier 2 43.55 44.50 57.20 58.94 60.89 62.61
Tier 3 92.75 94.80 125.84 129.67 133.96 137.75
Tier 4 136.00 139.00 185.90 191.56 197.90 203.49
Tier 5 179.25 183.15 243.10 250.50 258.79 266.10
Volume Charge
Metered - $/Ccf 2.82$ 3.21$ 3.60$ 3.99$ 4.42$ 4.90$
Unmetered
Each Room 1.83$ 2.09$ 2.13$ 2.36$ 2.62$ 2.91$
Each Water Closet 6.88 7.83 7.94 8.80 9.75 10.80
Each Bath 5.73 6.53 6.62 7.34 8.13 9.01
Each Separate Shower 5.73 6.53 6.62 7.34 8.13 9.01
Extra Strength Surcharges - $/ton (2)
Suspended Solids > 300 mg/l 244.03$ 251.88$ 262.00$ 269.97$ 278.90$ 286.78$
BOD > 300 mg/l 620.14 632.38 658.00 678.01 700.43 720.20
COD > 600 mg/l 310.07 316.19 329.00 339.01 350.22 360.11
Ccf - Hundred Cubic Feet (1) Final rate increase of Rate Change Plan approved December 2011
mg/l - milligram per liter (2) Applicable only to non-residential customers.
COMPARISON OF EXISTING AND PROPOSED RATES
Proposed Wastewater Charges Effective July 1
Type of Charge Current
Rate
Proposed
Rate
Regulatory Tax (District-wide per $100 Assessed Value) $.0197 $.0197
Stormwater O&M Tax (City and Near County per $100 Assessed Value) $.0682 $0
OMCI Specific Subdistrict Taxes (per $100 Assessed Value) $0.05 - $0.10 $0
Fixed Monthly Charge – Multi-Family Residential ($/unit) $0.18 $0
Fixed Monthly Charge – Single Family & Non-Res ($/account) $0.24 $0
District-wide Stormwater Tax (proposed) (per $100 Assessed Value) N/A $.1000
Rate Type
S/F M/F Comm.S/F M/F Comm.S/F M/F Comm.S/F M/F Comm.S/F M/F Comm.
Wastewater 40.72$ 146.65$ 341.40$ 44.72$ 163.52$ 382.38$ 49.56$ 181.23$ 423.58$ 54.91$ 200.77$ 469.02$ 60.86$ 222.56$ 519.70$
Stormwater 0.24 1.08 0.24 - - - - - - - - - - - -
Total Monthly Bill 40.96$ 147.73$ 341.64$ 44.72$ 163.52$ 382.38$ 49.56$ 181.23$ 423.58$ 54.91$ 200.77$ 469.02$ 60.86$ 222.56$ 519.70$
Customer Assistance
Program Bill 20.48 73.87 N/A 22.36 81.76 N/A 24.78 90.62 N/A 27.46 100.39 N/A 30.43 111.28 N/A
Single Family (S/F) - based on average 7 Ccf volume.
Multi Family (M/F) - based on average 40 Ccf volume/average 6 Units.
Commercial (Comm) - based on Normal strength with average 100 Ccf volume. Tier 2 Compliance Charge.
Customer Class
FY2016 (1)FY2017
Customer Class
Proposed Typical Monthly Bill Comparison
FY2018
Customer Class
FY2019
Customer Class
FY2020
Customer Class
Exhibit MSD 2