The URL can be used to link to this page

Home My Public Portal AboutExhibit MSD 79B - Rate Model GuideMetropolitan St. Louis Sewer District ZĂƚĞWƌŽƉŽƐĂů&zϮϬϭϳ ʹ &zϮϬϮϬ&ŝŶĂŶĐŝĂůWůĂŶŶŝŶŐΘZĂƚĞDŽĚĞů dŚĞZĂƚĞWƌŽƉŽƐĂůƐƵďŵŝƚƚĞĚƚŽƚŚĞZĂƚĞŽŵŵŝƐƐŝŽŶďǇƚŚĞDĞƚƌŽƉŽůŝƚĂŶ^ƚ͘>ŽƵŝƐ^ĞǁĞƌŝƐƚƌŝĐƚ;D^Ϳ ƚŽŝŶƚƌŽĚƵĐĞĂŶĚƌĞĐŽŵŵĞŶĚƐĞǁĞƌĂŶĚƐƚŽƌŵǁĂƚĞƌ ƌĂƚĞƐĂŶĚĐŚĂƌŐĞƐĨŽƌ&zϮϬϭϳƚŚƌŽƵŐŚ&zϮϬϮϬŝƐ ƐƵƉƉŽƌƚĞĚďǇĂĐŽŵƉƌĞŚĞŶƐŝǀĞĨŝŶĂŶĐŝĂůƉůĂŶŶŝŶŐ͕ĐŽƐƚŽĨƐĞƌǀŝĐĞ͕ĂŶĚƌĂƚĞŵŽĚĞů;DŽĚĞůͿ͘dŚĞDŽĚĞůǁĂƐ ĚĞǀĞůŽƉĞĚďǇZĂĨƚĞůŝƐ&ŝŶĂŶĐŝĂůŽŶƐƵůƚĂŶƚƐ;Z&ͿǁŝƚŚŝŶƉƵƚĂŶĚŐƵŝĚĂŶĐĞĨƌŽŵD^^ƚĂĨĨ͘dŚĞĚĞƚĂŝůĂŶĚ ƐƵƉƉŽƌƚĨŽƌƚŚĞƚĂďůĞƐ͕ĨŝŐƵƌĞƐ͕ĂŶĚƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞZĂƚĞWƌŽƉŽƐĂůĐĂŶďĞĨŽƵŶĚŝŶƚŚĞ ĞůĞĐƚƌŽŶŝĐŵŽĚĞů͘ŝƐĐƵƐƐŝŽŶƌĞŐĂƌĚŝŶŐƚŚĞĐŽŶƚĞŶƚĂŶĚŬĞǇǀĂƌŝĂďůĞƐĐĂŶďĞĨŽƵŶĚŝŶƚŚĞZĂƚĞWƌŽƉŽƐĂů͘ dŚĞĨŽůůŽǁŝŶŐ ƚĂďůĞƐĚĞƐĐƌŝďĞƚŚĞƐƚƌƵĐƚƵƌĞĂŶĚĐŽŶƚĞŶƚĨŽƵŶĚŽŶĞĂĐŚǁŽƌŬƐŚĞĞƚŝŶƚŚĞDŽĚĞů͘WŽƌƚŝŽŶƐ ŽĨƚŚĞDŽĚĞů ǁŝƚŚŬĞǇĚĂƚĂŝŶƉƵƚƐŚĂǀĞ ďĞĞŶƉƌŽƚĞĐƚĞĚƚŽĞŶƐƵƌĞƚŚĂƚŶŽĐŚĂŶŐĞƐĂƌĞŵĂĚĞǁŚŝĐŚ ĂĚǀĞƌƐĞůǇŝŵƉĂĐƚƚŚĞŝŶƚĞŐƌŝƚǇĂŶĚĨƵŶĐƚŝŽŶĂůŝƚǇŽĨƚŚĞDŽĚĞů͘ůůĨŽƌŵƵůĂƐĐĂŶďĞƐĞĞŶŝŶƚŚĞDŽĚĞů͘dŚĞ ŵŽĚĞůŚĂƐďĞĞŶƐĞƚƵƉƚŽĂůůŽǁĨŽƌŵŽĚĞůŝŶŐŽĨĂůƚĞƌŶĂƚŝǀĞĨŝŶĂŶĐŝĂůƉůĂŶŶŝŶŐƌĂƚĞĂĚũƵƐƚŵĞŶƚƐ͕ĐĂƉŝƚĂů ƉůĂŶŝŶǀĞƐƚŵĞŶƚĂŶĚĨƵŶĚŝŶŐŵĞĐŚĂŶŝƐŵƐ͕ĂŶĚŽƉĞƌĂƚŝŶŐĐŽƐƚĞƐĐĂůĂƚŽƌƐ͘/ŶŽƌĚĞƌƚŽƵƚŝůŝǌĞƚŚĞZ&DŽĚĞů WƌŽ ĨƵŶĐƚŝŽŶĂůŝƚǇ ƚŚĂƚ ŝƐ ďƵŝůƚ ŝŶƚŽ ƚŚĞ DŽĚĞů͕ ƵƐĞƌƐ ŵƵƐƚ ŝŶƐƚĂůů ƚŚĞ ŝŶĐůƵĚĞĚ ǆĐĞů ĚĚͲŝŶ ͞Z&ͺDŽĚĞůͺWƌŽͺϮ͘ϬͺϮϬϬϳ͘͟ 'ƵŝĚĞůŝŶĞƐĨŽƌ DĂŬŝŶŐ ŚĂŶŐĞƐƚŽƚŚĞ DŽĚĞů ϭ͘dŚƌŽƵŐŚŽƵƚƚŚĞŵŽĚĞů͕ĐĞůůƐƚŚĂƚĂƌĞƐŚĂĚĞĚŝŶďůƵĞŝŶĚŝĐĂƚĞůŽĐĂƚŝŽŶƐĨŽƌĐŽŶƚƌŽůƐĂŶĚͬŽƌŝŶƉƵƚƐ͘ Ϯ͘dŚĞ ͚^ĂŶŝƚĂƌǇĂƐŚďŽĂƌĚ͛ƉƌŽǀŝĚĞƐĂƉůĂĐĞƚŽĂĚũƵƐƚĂŶƚŝĐŝƉĂƚĞĚďĂƐĞĂŶĚǀŽůƵŵĞĐŚĂƌŐĞƌĂƚĞ ŝŶĐƌĞĂƐĞƐ͘ǇƐĞůĞĐƚŝŶŐĂĐĞůůĨŽƌ&zϭϳͲ&zϮϰĂŶĚƵƐŝŶŐƚŚĞƵƉͬĚŽǁŶĂƌƌŽǁƐ͕ƵƐĞƌƐĐĂŶĂĚũƵƐƚƚŚĞ ƉƌŽƉŽƐĞĚƌĂƚĞƐĂŶĚƐĞĞƚŚĞĂƉƉƌŽǆŝŵĂƚĞŝŵƉĂĐƚŝŶƚŚĞĐŚĂƌƚƐĂďŽǀĞ;ĐĞůůƐ<ϱϱ͗ZϱϲͿ͘ ϯ͘dŚĞ ͚^ĂŶŝƚĂƌǇĂƐŚďŽĂƌĚ͛ƉƌŽǀŝĚĞƐĂƉůĂĐĞƚŽĂĚũƵƐƚĂŶƚŝĐŝƉĂƚĞĚ ĐƵƐƚŽŵĞƌĂŶĚǀŽůƵŵĞŐƌŽǁƚŚ ƌĂƚĞƐ͘ǇƐĞůĞĐƚŝŶŐĂĐĞůůĨŽƌ&zϭϳͲ&zϮϰĂŶĚƵƐŝŶŐƚŚĞƵƉͬĚŽǁŶĂƌƌŽǁƐ͕ƵƐĞƌƐĐĂŶĂĚũƵƐƚƚŚĞ ƉƌŽƉŽƐĞĚ ĞƐĐĂůĂƚŝŽŶ ĂŶĚƐĞĞƚŚĞĂƉƉƌŽǆŝŵĂƚĞŝŵƉĂĐƚŝŶƚŚĞĐŚĂƌƚƐĂďŽǀĞ;ĐĞůůƐ<ϲϯ͗ZϲϱͿ͘ ϰ͘ŽƚƚŽŵůŝŶĞĂĚũƵƐƚŵĞŶƚƐƚŽŽƉĞƌĂƚŝŶŐĐŽƐƚƐĐĂŶĂůƐŽďĞĂŶĂůǇǌĞĚŽŶƚŚĞ ͚^ĂŶŝƚĂƌǇĂƐŚďŽĂƌĚ͛͘ ŶƚĞƌƉŽƐŝƚŝǀĞŽƌŶĞŐĂƚŝǀĞĂĚũƵƐƚŵĞŶƚƐŝŶƚŚŽƵƐĂŶĚƐŽĨĚŽůůĂƌƐ͘ ϱ͘dŚĞ ͚/ZWĂƐŚďŽĂƌĚ͛ĂůůŽǁƐĨŽƌĂŶĂůǇƐŝƐŽĨ/ZWƐƉĞŶĚŝŶŐĂŶĚĨŝŶĂŶĐŝŶŐŽƉƚŝŽŶƐ͘ Ă͘ĚũƵƐƚŝŶŐƐƉĞŶĚŝŶŐŝƐĂĐĐŽŵƉůŝƐŚĞĚĂƐĂƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞďĂƐĞůŝŶĞ/ZWƐƵďŵŝƚƚĞĚŝŶƚŚĞ ZĂƚĞWƌŽƉŽƐĂů͘ZŽǁϱϵĂŶĚZŽǁϲϮƉƌŽǀŝĚĞ ƐƉĂĐĞĨŽƌ ϮĂůƚĞƌŶĂƚŝǀĞƐĐĞŶĂƌŝŽƐ͖ĐŚĂŶŐŝŶŐƚŚĞ ƉĞƌĐĞŶƚĂŐĞĂĚũƵƐƚƐƚŚĞĂŶŶƵĂůƐƉĞŶĚŝŶŐĂŵŽƵŶƚ͘^ĞůĞĐƚŝŽŶŽĨĂůƚĞƌŶĂƚŝǀĞƐĐĞŶĂƌŝŽƐĐĂŶ ďĞĚŽŶĞǀŝĂĚƌŽƉͲĚŽǁŶŵĞŶƵŝŶ ĂƉŝƚĂů^ƉĞŶĚŝŶŐĐŚĂƌƚŽƌǀŝĂƚŚĞZ&DŽĚĞůWƌŽ^ĐĞŶĂƌŝŽ ƵŝůĚĞƌǁŝŶĚŽǁ͘;EŽƚĞ͗ĐŚĂŶŐŝŶŐƚŚĞ/ZWƐĞůĞĐƚŝŽŶĐĂŶĐŽƌƌƵƉƚƚŚĞůŝŶŬƐŝŶƚŚĞŵŽĚĞů ďĂƐĞĚŽŶŚŽǁƐǇƐƚĞŵƐĂƌĞĐŽŶĨŝŐƵƌĞĚ ĂŶĚǁŚĞƚŚĞƌŽƌŶŽƚ ƚŚĞ Z&DŽĚĞůWƌŽ ĚĚͲŝŶŚĂƐ ďĞĞŶŝŶƐƚĂůůĞĚ͘/ĨƚŚŝƐŽĐĐƵƌƐ͕ĨŝƌƐƚƚƌǇƚŽŽƉĞŶƚŚĞ^ĐĞŶĂƌŝŽDĂŶĂŐĞƌǁŝŶĚŽǁĨƌŽŵZ& DŽĚĞůWƌŽƚŽƐĞůĞĐƚƚŚĞƐĐĞŶĂƌŝŽ͘/ĨƉƌŽďůĞŵƉĞƌƐŝƐƚƐ͕ĐůŽƐŝŶŐĂŶĚƌĞŽƉĞŶŝŶŐƚŚĞĨŝůĞƐŚŽƵůĚ ƌĞƐĞƚĂŶĚĨŝǆƚŚĞŝƐƐƵĞ͖ƵƐĞƚŚĞ^ĐĞŶĂƌŝŽDĂŶĂŐĞƌ ǁŝŶĚŽǁƚŽƐĞůĞĐƚ/ZWŝŶƚŚŝƐŝŶƐƚĂŶĐĞͿ ď͘/ZW&ŝŶĂŶĐŝŶŐ ĐĂŶďĞĂŶĂůǇǌĞĚďǇĐŚĂŶŐŝŶŐWz'K ĂŶĚĚĞďƚ ĨƵŶĚŝŶŐůĞǀĞůƐ͘dŽ ŵĂŶƵĂůůǇ ĂĚũƵƐƚWz'KĨƵŶĚŝŶŐůĞǀĞůƐ͕ĐŚĂŶŐĞƚŚĞĞŶƚƌŝĞƐŝŶƌŽǁϲϴ͘ůƚĞƌŶĂƚŝǀĞůǇ͕ƌŽǁϲϴĞŶƚƌŝĞƐ ĐĂŶďĞĚĞůĞƚĞĚĂŶĚĚƌŝǀĞŶĨƌŽŵƚŚĞƉĞƌĐĞŶƚĂŐĞƐŝŶĚŝĐĂƚĞĚŝŶƌŽǁϲϳǁŚŝĐŚĐĂůĐƵůĂƚĞĂ ƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞĂŶŶƵĂů/ZWƐƉĞŶĚŝŶŐŶĞĞĚ͘ ([KLELW06'% XdZ D}o ]� �� ]�Z � ��}i�]}v� ��}�] � W&DX tZv ZvP]vP /ZW &]vv]vPU]�]�]u�}��v��} (]�� ]�Z�Zv��]v�}��(�}u ^W&D_�} ^D}o_~�Z]� �]��Z�o�o�]}vu}�o]v�ZD}oXh��v�Zvi��}v]��v u}�v�� v (]vv]vP ��u��]}v�~��uU��U�XX �XdZZ&D}oW�}r]v]v��oo��}}o�}v�Z�oZ]}vX&�}u�Z]��}}o�U��v ��v�]P�]}voUv�v�]}uvPuv��]v}��X Metropolitan St. Louis Sewer District Cost of Service and Financial Planning Model Schedule X: Worksheet and Schedule Guide Description Update Frequency Source / Process Model Inputs Inputs:Controls key escalation, growth, and cost allocation variables.Review annually and update as necessary.Management input Named Schedules:Operating Expense Escalation Revenue Assumptions Miscellaneous Revenue Escalation Customer Demand Growth Rates Demand-Input:Input schedules for customer bills, accounts, and volumes Review annually and update with each additional year of data. Bill Volume Reports, GIS Named Schedules:Input: WW Accounts Input: Plant Loadings Input: WW Bills Input: SW Parcels Input: WW Volumes Input: Impervious Area Input: WW Low Income Input: IA per Parcel Input: Extra Strength Loadings Input: Assessed Value CIRP_Input Input schedule for baseline CIRP costs, split between design and construction. Review annually and update as necessary.Engineering-generated report for WW and SW Named Schedules:CIRP Base Scenario_WW CIRP Base Scenario_SW Budget_Input Input schedules for budgeted and actual expenses from Oracle system. Update when new information is available or as necessary.Budget report from Oracle system, combined by O&M group. Named Schedules:Operating Budget Separate instructions available. Actual Operating Costs Revenue_Input Input schedule for budgeted and actual revenues from Oracle system. Update when new information is available or as necessary.Budget report from Oracle system, combined by O&M group. Named Schedules:Misc. Revenue Budget Separate instructions available. Actual Misc Revenue St Louis MSD Rate Financial Plan Model_Rate Proposal Final_Secure Draft 2/26/2015 Metropolitan St. Louis Sewer District Cost of Service and Financial Planning Model Schedule X: Worksheet and Schedule Guide Description Update Frequency Source / Process Data Forecasts & Development Demand Projection Takes historical customer demand information and applies growth rates to forecast demand throughout planning horizon. Review annually and update growth rates as necessary.After new historical data is entered on 'Input' sheet, 'Actual' must be selected here to use in model.Named Schedules:WW Accounts Plant Loadings WW Bills SW Parcels WW Volumes Impervious Area WW Low Income IA per Parcel Extra Strength Loadings Assessed Value O&M Summary Summarizes, allocates and forecasts opearting costs based on budget or actual input Review annually and update as necessary. Named Schedules:Operating Costs (Combined)Operating Costs (Indirect Allocation) Operating Costs (WW Allocation)Operating Costs (Detail & Source) Operating Costs (SW Allocation) CIRP Pulls Selected CIRP costs into schedule, summarizes funding mechanisms (from Dashboard), and projects construction fund balance Review annually and update as necessary. Named Schedules:CIRP Financing_WW CIRP Financing_SW CIRP Financing Details_WW CIRP Financing Details_SW Debt Detailed amortization schedules for all existing debt and estimated payments for projected future debt Update when new information is available or as necessary. Named Schedules:Existing Debt Debt Summary Proposed Debt Misc. Rev Summarizes, allocates and forecasts opearting costs based on budget or actual input Review annually and update as necessary. Named Schedules:Other Revenues (Combined)Other Revenue (SW Allocation) Other Revenue (WW Allocation) After new historical data is entered on 'Input' sheet, 'Actual' must be selected here to use in model. Can switch between model projection and budgeted costs here as well. After new historical data is entered on 'Input' sheet, 'Actual' must be selected here to use in model. Can switch between model projection and budgeted revenues here as well. WW controlled from CIRP Dashboard, with exception of Credit Line payments. SW CIRP financing is controlled on this worksheet. Debt amortization from FA. Changing timing and/or utilization of capitalized interest for future debt controlled on this worksheet. St Louis MSD Rate Financial Plan Model_Rate Proposal Final_Secure Draft 2/26/2015 Metropolitan St. Louis Sewer District Cost of Service and Financial Planning Model Schedule X: Worksheet and Schedule Guide Description Update Frequency Source / Process Model Dashboards CIRP Dashboard Summary charts and financing plan information for Selected CIRP program. Review annually and update as necessary. Named Schedules:Dashboard: CIRP Named Charts:CIRP Spending Debt Service CIRP Financing Outstanding Principal CIRP Financing Pie Sanitary Dashboard Summarizes Sanitary Financial Plan, rate impacts, reserves, and other key metrics of financial forecast. Review annually and update as necessary. Named Schedules:Dashboard: Rates Named Charts:Financial Plan Reserves Debt & Coverage Customer Bills Storm Dashboard Summarizes Storm Water Financial Plan, rate impacts, reserves, and other key metrics of financial forecast. Review annually and update as necessary. Named Schedules:Dashboard: Rates Named Charts:Financial Plan Reserves Debt & Coverage Customer Bills Ratings Generates key metrics and operating statistics used to develop a profile for credit-worthiness by the rating agencies Review annually or as bonds are issued. Named Schedules:Dashboard: Ratings Allows for control of selected CIRP scenario, adjustment of scenario costs, financing sources and variables. Allows for control of anticipated rate increases and growth projection assumptions. Source of data is published criteria from rating agencies. FA can provide additional commentary of appropriate targets for MSD. Allows for control of anticipated rate increases and growth projection assumptions. St Louis MSD Rate Financial Plan Model_Rate Proposal Final_Secure Draft 2/26/2015 Metropolitan St. Louis Sewer District Cost of Service and Financial Planning Model Schedule X: Worksheet and Schedule Guide Description Update Frequency Source / Process Summary Results and Tables Revenue Requirements Summarizes, allocates and forecasts total costs based on budget or actual input and capital financing plan. Review annually or as needed. Named Schedules:Revenue Requirements (Combined)Revenue Requirements (SW Allocation) Revenue Requirements (WW Allocation) Revenue Proof Calculates user charge revenue based on estimated demand and forecasted customer rates. Projects miscellaneous revenue based on budget or actual data and assumed revenue escalation. Presents basic comparison to revenue requirements for revenue sufficiency forecast Review annually and update as necessary. Named Schedules:Revenue Proof (WW)Revenue Proof (SW) Financial Plan Presents system revenues and expenditures to develop an annual cashflow estimate. Shows high level impact to reserves and calculates debt coverage levels annually. Review annually and update as necessary. Named Schedules:WW Financial Plan Reserves Estimates the annual change in operating and construction funds for the WW and SW utilities Review annually and update as necessary. Named Schedules:Reserves (Fund Balances) Cost of Service Module Rev-Alloc Allocation of miscellaneous revenue items to cost of service components Review as needed as part of cost of service update Named Schedules:COS: Revenue Offset Allocation OM-Funct Allocates test year operating costs to their functional cost components Review as needed as part of cost of service update Named Schedules:COS: O&M Functionalization OM-Alloc Allocates the functional operating cost components to their cost drivers Review as needed as part of cost of service update Named Schedules:COS: O&M Functional to Cost Driver Plant Presents detailed fixed asset data, projection of the plant in service net book value, estimates of CWIP and CWIP OCLD Review as needed as part of cost of service update Named Schedules:Plant: Plant in Service Plant: CWIP The beginning balance of the operating funds is input here, based on fund balance report from MSD St Louis MSD Rate Financial Plan Model_Rate Proposal Final_Secure Draft 2/26/2015 Metropolitan St. Louis Sewer District Cost of Service and Financial Planning Model Schedule X: Worksheet and Schedule Guide Description Update Frequency Source / Process Plant-Funct Allocates test year plant OCLD to functional cost components Review as needed as part of cost of service update Named Schedules:COS: Asset Functionalization Plant-Alloc Allocates the functional asset components to their cost drivers Review as needed as part of cost of service update Named Schedules:COS: Asset Functional to Cost Driver COS-Units Develops the test year units of service for the wastewater and storm water systems. Data pulls from the demand projection worksheet Review as needed as part of cost of service update Named Schedules:COS: WW Units COS: SW Units COS-Dist Distributes the O&M and capital costs that have been allocated to cost drivers to customer classes based on the units of service Review as needed as part of cost of service update Named Schedules:COS: Distribution COS-Results Summarizes the results of the COS analysis. Includes total district operating v. capital; total district sanitary v. storm; sanitary customer classes Review as needed as part of cost of service update Named Schedules:COS: District Cost Comparison COS: District COS by Utility COS: Wastewater COS Results Rate Design Designs and calculates the proposed rates based on the COS results and units of service Review as needed as part of cost of service update Named Schedules:COS: WW Rate Design COS: SW Rate Design COS Rate Summary Summarizes the COS-based rates that have been developed for the sanitary and storm systems Review as needed as part of cost of service update Named Schedules:COS: WW Rate Summary COS: SW Rate Summary COS Impacts Calculates and summarized customer bill impacts based on adopted and COS calculated rate increases. Review annually and update as necessary. Named Schedules: Allows for control of usage and customer information used in estimated bill impact . St Louis MSD Rate Financial Plan Model_Rate Proposal Final_Secure Draft 2/26/2015