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HomeMy Public PortalAbout2019 Wastewater Presentation - WebOverview of Wastewater Rate Proposal MSD Rate Commission Public Hearings May – July 2019 MSD Overview & Details •Government Utility •State Constitution •Voter Approved Charter •6 Member Board of Trustees (3 City & 3 County) •Two utilities: Wastewater & Stormwater •520 square mile service area •All of St. Louis City •87% of St. Louis County •~1,300,000 customers •88 municipalities served •7 Treatment Plants •350+ million gallons per day of wastewater treated •4,700+ miles of sanitary sewers •1,800+ miles of combined sewers •3,000+ miles of stormwater sewers •4th largest sewer system in the United States (as measured by miles of sewers handling wastewater) 3 Wastewater Rates " Eliminate 50 wastewater sewer overflows from sewer pipes " Build 60 miles of new wastewater sewers " Inspect 64,000 manholes " Replace incinerators at Bissell and Lemay treatment plants " Build tunnel from Fenton treatment plant to Lower Meramec treatment plant to eliminate Fenton plant. Wastewater Proposal Objective Proposal Objective: Fund a four-year $1.58B, 300+ project, capital improvement program to meet regulatory and system improvement needs MSD proposes authorization of $500M in additional bonds to fund this four-year capital program, in order to make needed rate increases more manageable. FY2021-2024 Wastewater Benefits 5 Key Issues for Consideration •Charter requirements •Bonding v. Cash (“Paygo”) •Affordability •Equitability •Underlying rate assumptions: •Customer growth •Water Usage •Inflation •Consent Decree compliance •Customer Assistance Program access 6 Typical Residential Monthly Bill in 2019 Proposal - Bond Financing v. Paygo FY21 FY22 FY23 FY24 2019 Bonds $ 56.63 $ 58.78 $ 61.02 $ 63.36 Percent Change 1.9% 3.8% 3.8% 3.8% 2019 Paygo $ 56.63 $ 65.17 $ 76.30 $ 86.29 Percent Change 1.9% 15.1% 17.1% 13.1% Typical Monthly Bill for Residential Metered Customer using 6 Ccf’s. 7 Cost Savings Benefits •Impact of 2018 Consent Decree amendment •Operation and maintenance expense •Cost of the capital program •Financing Cost (Debt v. Paygo) 8 Wastewater Rate Commission Timeline •Submission of District’s Rate Proposal and testimony – March 4, 2019 •Rate Commission Recommendation Report submitted to Board by August 19, 2019 •Changes to rates effective July 1, 2020 •Potential bond vote dates: Spring 2020 – Spring 2021 9 Rate Commission Public Hearings •Tuesday, May 14, 6 p.m. - St. Louis County Library, Grant’s View Branch, 9700 Musick Road, St. Louis, MO 63123 •Wednesday, May 22, 6 p.m. - Manchester Parks, Recreation and Arts Center, 359 Old Meramec Station Road 63021 •Tuesday, June 4, 6 p.m. - Richmond Heights Community Center, 8001 Dale Avenue 63117 •Thursday, June 27, 6 p.m. - Maryland Heights Community Center, 2300 McKelvey Road 63043 •Wednesday, July 10, 6 p.m. - UMSL Wellness & Recreation Center, 1 University Blvd. 63121 •Wednesday, July 24, 9 a.m. - Metropolitan St. Louis Sewer District headquarters, 2350 Market Street 63103 10 More Information/ Questions www.stlmsd.com/ratecommission Email: ratecommission@stlmsd.com Follow us: @msdratecommission @RateCommission Sean Hadley Manager of Public Affairs 314.768.6240 shadley@stlmsd.com MSD Questions 24/7 Customer Service: 314.768.6260 Billing: 866.281.5737 (toll free) Customer Assistance Program: 866.281.5737 Email: www.billingquest@stlmsd.com