HomeMy Public PortalAboutExhibit MSD 26 - Popular Annual Financial Report 2014P OPULAR A NNUAL F INANCIAL R EPORT
F Y E J 30, 2014
METROPOLITAN ST. LOUIS SEWER DISTRICT
ST. LOUIS, MISSOURI
Exhibit MSD 26
MSD MISSION
“To protect the public’s health, safety,
and water environment by responsibly providing
wastewater and stormwater management.”
MSD provided financial assistance to the Cortex development for construction of several
rainscaping Best Management Practices (BMPs) as a control measure for reducing
storm flow to the combined sewer system, thereby reducing combined sewer overflows to
the Mississippi River. The first-year rain garden plantings on the cover will mature and
blossom, converting a blighted industrial area into a brand-new urban district centered on
research, technology, and entrepreneurial exchange.
ON THE COVER
TABLE OF CONTENTS
D’ L ...........................................................................................................3
S Y S ..........................................................................................4-5
W W D.....................................................................................................................6-7
MSD W C ..............................................................8-9
Y R ...............................................................................................................10
L A ...............................................................................................................11
C S N P ..............................................12
MSD A L-T O ..........................................13
I S.......................................................................................................14
R E .........................................................................................15
C F S ............................................................................................16
P A B C R ..................17
POPULAR ANNUAL FINANCIAL REPORT FY 14 |1
T h e G o v e r n m e n t F i n a n c i a l O c e r s A s s o c i a t i o n o f t h e U n i t e d S t a t e s a n d C a n a d a ( G F O A ) h a s g i v e n a n
A w a r d f o r O u t s t a n d i n g A c h i e v e m e n t i n P o p u l a r A n n u a l F i n a n c i a l R e p o r t i n g t o t h e M e t r o p o l i t a n S t . L o u i s
S e w e r D i s t r i c t f o r i t s P o p u l a r A n n u a l F i n a n c i a l R e p o r t f o r t h e �s c a l y e a r t h a t e n d e d J u n e 3 0 , 2 0 1 3 . T h e A w a r d f o r
O u t s t a n d i n g A c h i e v e m e n t i n P o p u l a r A n n u a l F i n a n c i a l R e p o r t i n g i s a p r e s t i g i o u s n a t i o n a l a w a r d r e c o g n i z i n g
c o n f o r m a n c e w i t h t h e h i g h e s t s t a n d a r d s f o r p r e p a r a t i o n o f s t a t e a n d l o c a l g o v e r n m e n t p o p u l a r r e p o r t s .
I n o r d e r t o r e c e i v e a n A w a r d f o r O u t s t a n d i n g A c h i e v e m e n t i n P o p u l a r A n n u a l F i n a n c i a l R e p o r t i n g , a
g o v e r n m e n t u n i t m u s t p u b l i s h a P o p u l a r A n n u a l F i n a n c i a l R e p o r t , t h e c o n t e n t s o f w h i c h c o n f o r m t o p r o g r a m
s t a n d a r d s o f c r e a t i v i t y , p r e s e n t a t i o n , u n d e r s t a n d a b i l i t y a n d r e a d e r a p p e a l .
W e b e l i e v e o u r c u r r e n t r e p o r t c o n t i n u e s t o c o n f o r m t o t h e P o p u l a r A n n u a l F i n a n c i a l R e p o r t i n g
r e q u i r e m e n t s , a n d w e a r e s u b m i t t i n g i t t o t h e G F O A .
2 | M E T R O P O L I T A N S T . L O U I S S E W E R D I S T R I C T
Welcome. We appreciate your interest in the St. Louis Metropolitan Sewer District (MSD).
The work of the District includes both meeting the day-to-day needs of residents through basic sewer
services, while also planning for and implementing large-scale improvements that benefit the region in the
long term.
The rain garden on the cover of this report is not only visually appealing but also serves a critical function of
managing neighborhood-scale stormwater runo. This project is reflective of our ongoing collaboration with
regional partners to plan for and create infrastructure improvements which provide ecient, natural water
drainage while beautifying our community.
While our work is multifaceted, it is also singular in focus: to protect the public’s health, safety, and water
environment through responsible wastewater and stormwater management.
This annual report is designed to provide an overview of MSD’s work. Using non-technical language, it
provides a snapshot of our activities from our most recent fiscal year, July 1, 2013 to June 30, 2014. As you read
it, you will learn how we are carefully investing the funds we receive to improve operations and services.
This report also contains financial information for this past fiscal year that summarizes the much more
detailed information found in our Comprehensive Annual Financial Report. While the summary information
you will find here uses principles and guidelines consistent with Generally Accepted Accounting Principles
(GAAP), it has been simplified for general audiences and is not a GAAP-compliant publication.
If you are interested in a more in-depth financial review of our operations, our Comprehensive Annual
Financial Report and audited financial statements are available online at www.stlmsd.com/our-organization/
fiscal-investor-relations/annual-reports. You may also request a printed copy of this information by contacting
MSD at 314-768-6260.
We hope you find the information contained in the following pages useful. We welcome your comments and
suggestions on how we might improve future reports to better meet your interests and needs.
Respectfully submitted,
Brian Hoelscher Janice Zimmerman
Executive Director Director of FinanceDirector of Finance
DIRECTORS’ LETTER
POPULAR ANNUAL FINANCIAL REPORT FY 14 |3
The Metropolitan St. Louis Sewer
District (MSD) was created in 1954
to provide regional wastewater and
stormwater management services
to 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.
SIXTY YEARS OF SERVICE
MSD ocials, including Pete
Mattei (in glasses) Executive
Director from 1960-1978, examine
operations plans.
4 |METROPOLITAN ST. LOUIS SEWER DISTRICT
When MSD began operations, it
assumed operation of the numerous
sewer agencies within its jurisdiction
and began the construction of an
extensive system of collection and
interceptor sewers and treatment
facilities. In its 60 years of service,
MSD has vastly improved the sewer
systems in the St. Louis area. This
critical system improvement work
continues today.
MSD is governed by a six-person
Board of Trustees appointed by
the Mayor of the City of St. Louis
and the St. Louis County Executive.
MSD’s Executive Director reports
to this Board, which sets policy and
approves the annual budget. MSD’s
Rate Commission, established in
2000 and made up of representatives
from 15 local organizations, makes
recommendations to the Board
regarding all proposed wastewater and
stormwater funding structures.
When MSD first began operations, only about five percent of the population in the MSD service area was receiving wastewater treatment.
MSD employee Laurence “Red” Laughlin behind the wheel of the service truck he drove for twenty years.
Did you know?
of sewers predate 1890, and another 524 miles of sewer are more than 80 years old.
Over 311 miles
POPULAR ANNUAL FINANCIAL REPORT FY 14 |5
WHAT WE DO
MSD’s Dual Function
The St. Louis Metropolitan Sewer District is actually two separate utilities with
related functions:
MSD owns, operates, and maintains the St. Louis region’s sewer systems, which
consist of wastewater, stormwater, and combined collection sewers, pumping
stations and wastewater treatment facilities. Wastewater sewers accommodate
household and commercial waste. Storm sewers carry stormwater and surface
water runo. Combined sewers carry both wastewater and stormwater.
Additionally, MSD is responsible for wastewater and stormwater sewer
maintenance, monitoring of industrial wastewater quality, rehabilitation of sewer
lines, plan review and approvals, and issuance of connection permits.
Wastewater – collect “used” water
disposed of in sinks, toilets, and floor
drains by households and businesses,
and then treat it to high standards before
returning it to the region’s waterways.
Stormwater – operate and maintain
the separate storm sewer systems that
serve approximately 90% of St. Louis
County area municipalities, and help
coordinate regional eorts to address
pollution carried in or caused by
stormwater runo.
MSD workers prepare a slip lining to repair cracks in a sewer line.
278
pumping stations7
wastewater
treatment plants5
watersheds
MSD’s FacilitiesFootprint:
6 |METROPOLITAN ST. LOUIS SEWER DISTRICT
MSD has several public outreach initiatives to inform and educate
residents about wastewater and stormwater issues, as well as MSD
programs and services.
Storm Drain Marking – a youth service project that involves marking
storm drains, providing a visible reminder to area residents of the
consequences of improper waste disposal in storm drains
EnviroScape® – a hands-on teaching tool used to raise awareness of non-
point source pollution, watersheds, and stormwater management
Stream and Neighborhood Cleanups – river cleanup programs
organized in conjunction with local community and environmental
groups
Customer Assistance Program – support for area residents who need
help in paying their monthly sewer bill
Public Outreach
An MSD ocial speaks with residents and homeowners about Project
Clear and how to maintain rainscaping features on their property.
* MSD Comprehensive Annual
Financial Report, fiscal year
ending June 30, 2014
average number of gallons of wastewater treated every day by MSD in FY 14*
270 million+
POPULAR ANNUAL FINANCIAL REPORT FY 14 |7
MSD AT WORK IN THE COMMUNITY
Coldwater
Grand Glaize
Fenton
Missouri River
Lemay
Bissell Point
Lower Meramec
I-270
I-270
I-270
I-44
I-44
I-64
I-64
I-255
I-55
I-170
I-70
I-70
An MSD dig crew repairing
underground pipes.
MSD Wastewater Treatment Plants Service Area
MSD’s service area encompasses approximately
525 square miles, including all 62 square miles of
the City and 462 square miles – 90 percent – of the
County. The current population served by MSD is
approximately 1.3 million, representing more than
424,000 accounts.
of MSD wastewater sewers; 3,000+ miles of stormwater sewers*
*As of March 2014
8 |METROPOLITAN ST. LOUIS SEWER DISTRICT
6,550 miles
Below are some key programs of MSD at work
in the community:
MSD Project Clear
MSD Project Clear is the initiative to improve
water quality and alleviate many wastewater
concerns in the St. Louis region. It will
invest billions of dollars over a generation in
planning, designing, and building community
rainscaping, system improvements,
and through an ambitious program of
maintenance and repair. Work already
underway is on track and under budget.
One aspect of MSD Project Clear is the
rainscaping and green infrastructure program.
MSD will be installing $100 million in
rainscaping projects throughout the Bissell
Point watershed area over a generation.
Rainscaping is any combination of plantings,
water features, catch basins, permeable
pavement, and other activities that manage
stormwater as close as possible to where it
falls. Below ground level, improved soils store
and filter stormwater, allowing the surrounding
area to slowly absorb it over time. Above
ground level, native plants, basins, and water
features create green spaces that also help
store water. Used eectively, rainscaping can
reclaim stormwater naturally, reduce sewer
overflows, and minimize basement backups.
Perhaps the most important part of MSD’s
mission today is the execution of the Capital
Improvement and Replacement Program
(CIRP). The long-term goals of the CIRP
are to protect the health and safety of our
St. Louis community through the renewal and
improvement of MSD’s existing wastewater
collection and treatment capabilities.
1. Anheuser-Busch InBev
2. Mallinckrodt
3. Washington University
4. City of St. Louis
5. Sigma-Aldrich
6. Saint Louis Zoo
7. Saint Louis University
8. The Dial Corporation
9. Sensient Colors Inc.
10. Trigen-Energy Corporation
Largest MSDCustomersin 2014
MSD has the fourth largest wastewater collection system in the U.S., behindNew York, Chicago and Los Angeles.
Did you know?
MSD employees review plans
for future projects.
POPULAR ANNUAL FINANCIAL REPORT FY 14 |9
Capital Improvement
MSD addressed 164 new or continuing wastewater
and stormwater design and construction projects in
FY 14, totaling $217.7 million.
Sanitary Sewer Overflow (SSO) Control Master Plan
In FY 14, MSD received final approval from the
Environmental Protection Agency (EPA) on the
SSO Control Master Plan submitted on December
31, 2013. This plan describes the projects that
will be implemented to remove the remaining
146 constructed SSOs by 2033. Since 2009, MSD
has removed 76 of the constructed SSOs, six of
them in FY 14. The estimated cost of this work is
approximately $2.0 billion over the next two decades.
Diversity
MSD has had a well-recognized diversity program
in place for several years, marked by its success
in helping build minority and women-owned
businesses in our St. Louis community. Minority/
Women Business Enterprise (MWBE) firms have
had extensive participation in MSD’s Capital
Improvement and Replacement Program (CIRP).
In FY 14, MWBE participation in construction
projects was 19.98%, MWBE participation in
professional services projects was 25.40%, and
MWBE participation in other capital vendor services
was 25.14%. In addition, MWBE participation in
general purchasing transactions was 17.65%. These
expenditures resulted in a cumulative MWBE
utilization percentage of 22.04%.
Peak Performance Awards
MSD was recognized with seven Peak Performance
Awards by the National Association of Clean Water
Agencies (NACWA). Peak Performance recognizes
public wastewater treatment facilities for their
outstanding compliance records.
Public Outreach Initiatives
Storm Drain Marking - Storm drain marker
installation projects were conducted by a number
of volunteers, including community groups, private
citizens, and municipalities. MSD provided kits
containing over 1,000 markers that were utilized in
five planned projects. In addition to the markers,
4,100 door hangers were distributed to households
in the areas marked. The door hangers explain
the marking project and provide households with
stormwater best management practices.
EnviroScape® – MSD sta delivered EnviroScape®
presentations to elementary, middle school, and
college students; boy and girl scouts and their leaders;
professional and technical groups; civic organizations;
watershed planning groups; and neighborhood
associations. In fiscal year 2014, 128 EnviroScape®
presentations were made to nearly 3,000 people.
Stream and Neighborhood Cleanups – MSD
continued to support partners and volunteers to
make stream and neighborhood cleanups successful
events. In fiscal year 2014, partners and volunteers
conducted 48 events, resulting in the collection of
approximately 59 tons of trash, six tons of recycled
metal, and more than 1,100 tires.
Customer Assistance Program (CAP) –
MSD has restructured its Customer Assistance
Program (formerly known as the Low-Income
Program) to increase the number of customers who
are able to take part in it. In FY 14, approximately
2,200 MSD customers participated in the CAP. In an
eort to increase awareness of the CAP and reach
more residents who need assistance in paying their
bill, MSD has developed an outreach campaign
which includes participating in major community
events such as the Susan G. Komen Race for the
Cure and Sista Strut.
YEAR IN REVIEW
10 |METROPOLITAN ST. LOUIS SEWER DISTRICT
LOOKING AHEAD
MSD Project Clear
MSD Project Clear will continue its work across the
St. Louis area to get the rain out, repair and maintain,
and build system-wide improvements. Future
projects range in scale from massive storage tunnels
to retain stormwater during heavy rain events before
sending to the treatment plants, to the disconnection
of residential downspouts from the wastewater sewer
lines, and rainscaping improvements to manage
stormwater as close as possible to where it falls.
In FY 15, MSD has plans for 76 new or continuing
wastewater projects, located throughout its service
area, totaling $210.3 million. These projects are
funded primarily from the Sanitary Replacement
Fund and represent $28.6 million in continued
projects and $181.7 million in new projects.
MSD will complete the $3 million Green
Infrastructure Pilot Program and submit the
final report to the EPA by the end of the calendar
year 2015. The final report will lay out how MSD
will use the remainder of the $100 million green
infrastructure program to reduce combined sewer
overflows (CSOs) within the Bissell watershed.
Stormwater
MSD, St. Louis County, and 58 St. Louis County
Municipalities are regulated under a Missouri
Department of Natural Resources Phase II
Stormwater permit. Under the provisions of this
permit, MSD is the St. Louis Coordinating Authority
for the small municipal separate storm sewer system.
In addition to the regulatory permit functions, MSD
plans 26 stormwater projects in FY 15 within specific
taxing districts, including continuing projects from
FY 14, totaling $6.7 million.
Armative Action Program (AAP)
An AAP is an internal program implemented to
establish guidelines for recruiting and selection
processes in a good faith eort to promote and
maintain a fair and equal workforce within MSD.
MSD’s annual AAP review, expected to be completed
by December 31, 2014, will analyze the results of
existing hiring processes to determine if adjustments
need to be made to prevent potential discrimination
or adverse impact against women and minorities.
Community Benefits Agreement (CBA)
The CBA is a formal agreement between MSD and
community organizations to establish a framework
for addressing diversity issues in workforce training,
business development, and other areas that often
act as obstacles in developing an inclusive labor
pool and contracting community. All CBA activities
should be completed and in place in 2015.
Accela Software
MSD entered into a cost-saving software sharing
agreement with St. Louis County to streamline
electronic plan submission, mobile inspections, and
document tracking. St. Louis County currently uses
the software in its permitting programs. The software
integration is expected to be completed in 2015.
POPULAR ANNUAL FINANCIAL REPORT FY 14 |11
FY2014 FY2013
ASSETS:
Current, restricted, and other assets $ 704,266 $ 603,104
Capital assets (net of accumulated depreciation) 2,763,413 2,659,806
Total Assets 3,467,679 3,262,910
DEFERRED OUTFLOW OF RESOURCES:
Bonds and Notes Payable-Deferred Loss on Refunding 10,108 10,618
Total Deferred Outflow of Resources 10,108 10,618
LIABILITIES:
Current liabilities 95,196 89,432
Non-current liabilities 1,114,639 944,038
Total Liabilities 1,209,835 1,033,470
NET POSITION:
Net investment in capital assets 1,845,394 1,877,692
Restricted 142,764 111,066
Unrestricted 279,794 251,300
Total Net Position $ 2,267,952 $ 2,240,058
Definitions:
Current, restricted, and other assets: all assets other than fixed assets, that are owned or due to the District.Capital assets (net of accumulated depreciation): the total value of all fixed assets, including all sanitary infrastructure, general plant and
equipment, and land.Current liabilities: money owed by the District and due within 12 months.
Non-current liabilities: money owed by the District that is due more than 12 months in the future.Net investment in capital assets: the value or net worth of all fixed assets after related liabilities are deducted.
Restricted: the value or net worth of all assets designated for specific purposes after related liabilities are deducted.Unrestricted: the value or net worth of all remaining assets after remaining liabilities are deducted.
WHAT IT TELLS YOU
A Statement of Net Position, also known as a balance sheet, is a financial statement that summarizes what MSD owns and owes at a
given point in time. It also shows our net worth at that specific point in time.
OUR FY BALANCE SHEET SHOWS THAT:
• MSD’s assets exceed liabilities by $2.27 billion.
• Overwhelmingly, MSD’s assets are in the form of capital assets. The $2.76 billion in net capital assets is split into the five categories
depicted in the pie chart (page 13).
• Of the $1.21 billion in liabilities, $1.11 billion are in the form of bonds and notes payable. An historic depiction of MSD’s debt
level is below.
HISTORIC DEBT LEVEL
FISCAL YEAR .….….….….….….….….….….….….….….….…AMOUNT
2005 ........................................................................................$ 342,723,599
2006 ......................................................................................... 379,940,538
2007 ........................................................................................... 445,985,230
2008 ......................................................................................... 437,276,799
2009 ......................................................................................... 499,243,290
FISCAL YEAR .….….….….….….….….….….….….….….….…AMOUNT
2010 .........................................................................................$ 605,156,058
2011 .......................................................................................... 584,600,880
2012 .......................................................................................... 658,396,362
2013 .......................................................................................... 877,066,658
2014 ..................................................................................... 1,040,820,820
KEY FINANCIAL INFORMATION
CONDENSED STATEMENT OF NET POSITION (in thousands)
12 |METROPOLITAN ST. LOUIS SEWER DISTRICT
KEY
Other (see detail)
Construction In Progress
Treatment, Disposal Plant
and Equipment
Collection and Pumping Plant
Detail
Land
General Plant and Equipment
MILLIONSWHAT WE OWN: MSD ASSETS
WHAT WE OWE: MSD LONG-TERM OBLIGATIONS
CONDENSED STATEMENT OF CAPITAL ASSETS LESS NET OF DEPRECIATION (in millions)
BONDS AND NOTES PAYABLE
MILLIONSBONDS AND NOTES PAYABLE
POPULAR ANNUAL FINANCIAL REPORT FY 14 |13
NOTE: Revenue Bonds and Direct Loan balances only
2014 2013 2012 2011 2010OPERATING REVENUES:
Sewer service charges $ 250,133 $ 238,635 $ 227,677 $ 223,276 $ 251,683
Provision for doubtful sewer service
charge accounts 7,210 (2,655) (6,911) (6,249) (10,188)
Provision for uncollected stormwater
charge accounts —— — (2,374) —
Licenses, permits, and other fees 6,563 2,731 2,684 2,976 3,085
Other 1,867 3,235 2,550 1,815 2,007
Total Operating Revenues 265,773 241,946 226,000 219,444 246,587
NONOPERATING REVENUES:
Property taxes levied by the district 27,450 26,016 24,604 27,126 1,401
Investment income 2,967 1,057 2,407 3,847 6,554
Rent and other income 302 293 295 443 265
Total Non-Operating Revenues 30,719 27,366 27,306 31,416 8,220
Total Revenues 296,492 269,312 253,306 250,860 254,807
OPERATING EXPENSES:
Pumping and treatment 54,126 54,526 49,005 50,532 47,266
Collection system maintenance 39,988 37,877 36,695 33,152 36,082
Engineering 12,184 12,020 8,544 12,486 15,773
General and administrative 45,661 41,485 33,180 36,078 39,237
Water backup claims 2,713 3,503 2,050 8,912 3,951
Depreciation 74,087 70,030 66,742 66,854 54,012
Asset management 12,539 10,717 20,092 36,492 32,458
Total Operating Expenses 241,298 230,158 216,308 244,503 228,780
NONOPERATING EXPENSES:
Net (gain) loss on disposal and sale of
capital assets 5,248 796 3,163 3,486 2,719
Non-recurring projects and studies 3,493 4,676 6,403 10,801 9,872
Legal claims ——5 4,829 —
Interest expense 25,661 21,062 16,365 7,971 13,189
Total Non-Operating Expenses 34,402 26,534 25,936 27,087 25,780
Total Expenses 275,700 256,692 242,244 271,590 254,560
INCOME BEFORE CAPITAL GRANTS AND CONTRIBUTION 20,792 12,620 11,062 (20,730) 247
Capital grants and contributions 7,102 17,535 9,659 10,099 19,786
CHANGE IN NET POSITION 27,894 30,155 20,721 (10,631) 20,033
Net position - beginning of year 2,240,058 2,209,903 2,189,182 2,207,650 2,187,617
NET POSITION END OF YEAR $ 2,267,952 $ 2,240,058 $ 2,209,903 $ 2,197,019 $ 2,207,650
INCOME STATEMENT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (in thousands)
Definitions:
Operating revenues: all income received from the District’s daily normal business.Operating expenses: all expenses related to the District’s daily normal business.
Non-operating revenues: all income not related to the District’s daily normal business.
Non-operating expenses: all expenses not related to the District’s daily normal business activities.
WHAT IT TELLS YOU
An income statement tells you where MSD gets its funds and how they are spent. It also shows how much money MSD made or lost
over a specific period of time.
OUR INCOME STATEMENT SHOWS THAT:
• Sewer service charge revenue increased as a result of the scheduled rate increase that occurred in FY 14.
• Operating expenses increased due to upgrading the billing and collection system, increased personnel costs, and new assets being
depreciated.
14 |METROPOLITAN ST. LOUIS SEWER DISTRICT
REVENUES
WHERE THE MONEY COMES FROM (in thousands)
EXPENSES
WHERE THE MONEY GOES (in thousands)
KEY
Other (see detail)
Property Taxes Levied by
the District
Sewer Service Charges, Net
Detail
Licenses, Permits, and Other Fees
Rent and Other Income
Investment Income
Other Operating
KEY
Other (see detail)
Employment Costs
Utilities
Contracted Services
Depreciation
Detail
Non-Recurring Projects
and Studies
Net Loss on Sale of Assets
Materials and Supplies
Chemical Supplies
Insurance
Other Operating Expenses
POPULAR ANNUAL FINANCIAL REPORT FY 14 |15
FY2014 FY2013
Cash flows from operating activities $ 81,864 $ 84,882
Cash flows from non-capital financing activities 27,468 23,014
Cash flows from capital activities (25,597)83,449
Cash flows from investing activities (86,487)(168,410)
Net increase (decrease) in cash and cash equivalents (2,752)22,935
Cash and cash equivalents at beginning of year 181,755 158,820
Cash and Cash Equivalents at End of Year $ 179,003 $ 181,755
Definitions:
Cash flows from operating activities: all cash received or spent related to MSD’s daily normal business activities.
Cash flows from non-capital financing activities: all cash received related to taxes.
Cash flows from capital and related financing activities: cash received or spent related to construction of MSD’s infrastructure.
Cash flows from investing activities: cash received or spent related to investing MSD’s cash reserves.
WHAT IT TELLS YOU
A cash flow statement summarizes both the cash and the net cash coming in and going out of MSD during a given period.
OUR CASH FLOW STATEMENT SHOWS THAT:
• Cash flows from operating activities decreased due to increased outflows to suppliers for goods and services.
• Cash flows from capital and related financing activities decreased as a result of fewer bond proceeds and premiums
received during FY 14.
• Cash flows from investing activities increased due to an increase in the volume of maturities of investments.
CASH FLOW STATEMENT
OPERATING ACTIVITIES COMPARISON
CONDENSED STATEMENT OF CASH FLOWS (in thousands)
OPERATING ACTIVITIES COMPARISON
KEY
2014
2013 Thousands16 |METROPOLITAN ST. LOUIS SEWER DISTRICT
WHAT IT TELLS YOU
A performance against budget statement shows the link between the
funds used to serve the public and the outcomes of those services.
In our case, it shows that MSD has been good stewards of the funds
allocated to us:
• FY 14 Actual spending was $431M vs. $493M Budget.
• Unfilled positions contributed approximately $2.8 million to savings
in our operating budget.
• Capital project expenditures were under budget by $46 million due
to favorable bid prices and some schedule delays.
• A change in accounting procedure resulted in recognition of
debt payments in fiscal year 2014-2015 when they were due. This
resulted in savings to budget of approximately $12 million during
the 2013-2014 fiscal year.
• Finally, operation and maintenance costs related to our stormwater
system were less than expected by $1.9 million.
PERFORMANCE AGAINST BUDGET
CREDIT RATING
WHAT IT TELLS YOU
A credit rating provides an assessment of an organization’s credit worthiness, based on its history of borrowing and repayment of
funds, as well as its assets and liabilities. A poor credit rating makes it more dicult to find financing and often results in higher
interest rates.
As the chart below illustrates, MSD has premium credit. We have demonstrated to creditors and credit rating agencies our ability to
manage large annual capital plans. Our solid financial management, including close monitoring of our financial performance, strong
debt coverage, and liquidity also contribute to these ratings, which have remained constant the past two years.
FY2012 FY2013 FY2014
Moody’s Aa1 Aa1 Aa1
Standard & Poors (S&P) AAA AAA AAA
Fitch AA+ AA+ AA+
POPULAR ANNUAL FINANCIAL REPORT FY 14 |1 7
METROPOLITAN ST. LOUIS SEWER DISTRICT
ST. LOUIS, MISSOURI
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