HomeMy Public PortalAbout201802-26 - RC Rate Presentation - Public - FINALFebruary 26, 2018
Rate Commission Meeting
Overview of Stormwater Capital Funding
Proposal
Current Status
Proposition S: April 2016
•Voters passed Proposition S in April 2016.
•The issue addressed by Proposition S was unequal storm sewer
operations and maintenance funding across our service area.
•Proposition S simplified and equalized these services with regard
to operations and maintenance in the public storm sewer
system.
•Now, MSD is exploring options to fund District-wide capital
projects addressing erosion and flooding.
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Current District Funding:
$0.0197 regulatory tax
+ $0.10 stormwater tax
= $0.1197 total tax rate
•Includes regulatory
compliance
•Includes complete
operations and
maintenance
•Includes limited funding
for necessary capital
improvements:
−FY17-20 = ~$67M
Stormwater Capital
Program (FINITE
PROGRAM)
Current Status
Proposition S: Outcomes
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Localized
Flooding
Regional
Flooding Erosion
STORMWATER PROPOSAL:
Unfunded Stormwater Issues
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" ~ 5 0 0 u n f u n d e d e r o s i o n
a n d f l o o d i n g i s s u e s
" ~ $ 5 6 2 M t o t a l e s t i m a t e d
c o s t
* B a s e d o n N o v e m b e r 2 0 1 7
d a t a
S T O R M W A T E R P R O P O S A L : U n f u n d e d
S t o r m w a t e r I s s u e s
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* M a p l o c a t i o n s a r e a p p r o x i m a t e
" M S D w i l l i m p l e m e n t a S t o r m w a t e r C a p i t a l R a t e t o f u n d a $ 3 0 m i l l i o n p e r
y e a r s t o r m w a t e r c a p i t a l p r o g r a m .
"T h e S t o r m w a t e r C a p i t a l R a t e w i l l b e b a s e d o n t h e a m o u n t o f
i m p e r v i o u s a r e a o n e a c h c u s t o m e r s p r o p e r t y .
"A v e r a g e c h a r g e f o r a s i n g l e f a m i l y h o m e w i l l b e $ 2 . 2 5 p e r m o n t h o r
$ 2 7 . 0 0 p e r y e a r .
"T a x e x e m p t e n t i t i e s w i l l b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
" S t o r m w a t e r C a p i t a l P r o g r a m w i l l a d d r e s s u n f u n d e d s t o r m w a t e r i s s u e s
( i . e . , l o c a l i z e d f l o o d i n g , e r o s i o n , a n d r e g i o n a l f l o o d i n g ) .
"E s t i m a t e s a r e t h a t a l l c u r r e n t l y i d e n t i f i e d i s s u e s c o u l d b e a d d r e s s e d
i n ~ 3 0 y e a r s .
"C r e e k s , s t r e a m s , e t c . r e m a i n p r i v a t e l y o w n e d .
"F l o o d p l a i n m a n a g e m e n t r e s p o n s i b i l i t i e s r e m a i n w i t h m u n i c i p a l i t i e s .
" L e v e e D i s t r i c t s u n d e r a g r e e m e n t s w / M S D e x e m p t f r o m p r o p o s e d
S t o r m w a t e r C a p i t a l R a t e , a s s e r v i c e s a r e p r o v i d e d t h r o u g h t h e D i s t r i c t s .
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S t o r m w a t e r C a p i t a l F u n d i n g P r o p o s a l
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" T h e p r o p o s e d r a t e w a s d e t e r m i n e d b a s e d o n t h e r e c o m m e n d e d c a p i t a l
i m p r o v e m e n t p r o g r a m ( ~ $ 3 0 m i l l i o n a n n u a l l y ) d i v i d e d b y t h e e s t i m a t e d n u m b e r
o f E q u i v a l e n t R e s i d e n t i a l U n i t s ( E R U ) w i t h i n M S D s s e r v i c e a r e a .
" A n E R U i s a u n i t o f i m p e r v i o u s s u r f a c e a r e a .
"E a c h E R U e q u a l s 2 , 6 0 0 s q u a r e f e e t .
"E a c h E R U c h a r g e d a t $ 2 . 2 5 p e r m o n t h .
" M u l t i - f a m i l y , c o m m e r c i a l c u s t o m e r s , a n d o t h e r n o n - r e s i d e n t i a l c u s t o m e r s w i l l b e
c h a r g e d b a s e d o n p r o p e r t y s i z e d i v i d e d i n t o E R U s .
"E x a m p l e : C o m m e r c i a l c u s t o m e r w i t h 1 0 , 0 0 0 s q u a r e f e e t o f i m p e r v i o u s a r e a
e q u a l s 4 E R U s .
" S i n g l e - f a m i l y r e s i d e n t i a l c u s t o m e r c h a r g e s w i l l b e c a l c u l a t e d u s i n g a 4 - t i e r
s y s t e m t h a t d i f f e r e n t i a t e s b e t w e e n c u s t o m e r p r o p e r t y s i z e s .
"T i e r r a n g e s w e r e d e v e l o p e d u s i n g E R U a s r e f e r e n c e p o i n t .
"T i e r s a r e a n a c c e p t a b l e a n d c o m m o n i n d u s t r y p r a c t i c e .
"U s i n g 4 t i e r s s h a r e s t h e c o s t o f t h e s e s e r v i c e s m o r e e q u i t a b l y a m o n g s t
c u s t o m e r s .
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S t o r m w a t e r C a p i t a l R a t e C a l c u l a t i o n
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Note: Fiscal Year 2022 revenue is shown as the full rate that will be charged at
the beginning of MSD’s Fiscal Year 2022 (July 1, 2021, through June 30, 2022).
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Stormwater Capital Rate Calculation
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Properties/ERUs
Monthly
Rate
FY22 Annual Billed
Revenue
Residential Properties
Tier 1: 200 - 2,000 Sq. Ft 120,523 1.42$ 2,050,096$
Tier 2: 2,001 - 3,600 Sq. Ft 218,750 2.25$ 5,906,250$
Tier 3: 3,601 - 6,000 Sq. Ft. 80,469 3.74$ 3,606,621$
Tier 4: >6,000 Sq. Ft. 27,122 6.84$ 2,226,174$
Customer Assistance Program Accounts 6,328 1.13$ 85,428$
Subtotal: Residential Properties 453,192 properties 13,874,569$
Non Residential & Multi-Family ERUs 601,353 ERUs 2.25$ 16,236,531$
30,111,100$
Customers
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Billing Frequency
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•The Stormwater Capital Rate will be appear on the
monthly bill of MSD customers that are also billed for
wastewater.
•Customers not billed for wastewater with properties containing
more than 20 ERUs will be billed monthly.
•All other customers not receiving MSD wastewater services will
be billed on a quarterly basis.
Impervious Based Rate Rationale
•Aug 2007: Rate Commission recommended various MSD taxes and 24¢ fee be replaced by
stormwater impervious fee.
•Dec 2007: MSD Board approved Rate Commission recommendation to implement
impervious fee.
•Mar 2008: Impervious fee implemented.
•July 2008: Zwieg vs MSD lawsuit, challenging the impervious fee, is filed.
•Aug 2010: MSD suspended impervious fee and reinstituted various taxes and 24¢ fee.
•July 2008 - Nov 2013: Circuit, Appellate, and Missouri Supreme Courts declared the
impervious fee unconstitutional without voter approval.
•July 2008 - Nov 2013: Courts unanimously agreed MSD not required to refund
impervious fee revenue that was collected and spent on stormwater services.
•Aug 2015: Rate Commission recommended MSD consider an impervious based
stormwater fee in the future.
•Jan - June 2017: Public outreach and surveying shows that an impervious based rate is
the preferred method for funding a stormwater capital program.
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" I m p e r v i o u s a r e a i s a h a r d e n e d s u r f a c e s u c h a s c o n c r e t e , b l a c k t o p , a
r o o f t o p , c o m p a c t e d g r a v e l t h a t d o e s n o t a b s o r b s t o r m w a t e r ; a n d w h i c h
g e n e r a t e s s t o r m w a t e r r u n o f f .
" F l o o d i n g a n d e r o s i o n s e r v i c e s b e i n g p r o p o s e d u n d e r t h e n e w S t o r m w a t e r
C a p i t a l R a t e a r e d i r e c t l y i m p a c t e d b y t h e v o l u m e o f s t o r m w a t e r r u n o f f
c r e a t e d b y i m p e r v i o u s a r e a o n e a c h p r o p e r t y .
" F a i r e s t w a y t o d e t e r m i n e r e v e n u e c o n t r i b u t i o n o f e a c h p r o p e r t y i s
t h r o u g h a n i m p e r v i o u s a r e a m e a s u r e m e n t m e t h o d .
" A l l p u b l i c a n d p r i v a t e p r o p e r t y , i n c l u d i n g p r o p e r t i e s o w n e d b y
g o v e r n m e n t a l a n d n o n p r o f i t e n t i t i e s , w i l l b e s u b j e c t t o t h e S t o r m w a t e r
C a p i t a l R a t e .
" F u n d i n g w o u l d b e r e d u c e d b y ~ 1 5 % i f i t i s l a t e r d e t e r m i n e d t h a t
g o v e r n m e n t a l a n d n o n p r o f i t e n t i t i e s s h o u l d n o t b e s u b j e c t t o t h e
S t o r m w a t e r C a p i t a l R a t e .
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I m p e r v i o u s B a s e d R a t e R a t i o n a l e ( c o n t )
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•MSD staff will begin Rate Proposal development in July 2018
•Rate Commission meetings are scheduled to begin in September
2018
•Rate Proposal will be submitted to the Rate Commission in
February/March 2019
•MSD Board will consider the Rate Proposal in October 2019
•If applicable, new rates will be effective July 2020
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Wastewater Rate Commission Timeline
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Lance LeComb
Manager of Public Information & Spokesperson
(314) 768-6237
llecomb@stlmsd.com
www.stlmsd.com/ratecommission
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More Information / Questions