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Home My Public Portal About08658 O R D I N A N C E NO. 8658 An Ordinance providing for the establishment of a Sanitary Replacement Fund; providing for the transfer of a portion of the Wastewater User Charge revenues to such fund; providing for the use of monies in the Sanitary Replacement Fund to meet the costs of repairing, rehabilitating and replacing the District's Wastewater System; and establishing the policy of the Board with regard thereto. WHEREAS, the Board does hereby find and determine that the funding of replacements and depreciation of the District's Wastewater System through the District's Wastewater User Charges is fair and reasonable, is consistent with good accounting and rate-making principles, will satisfy the requirements of the Clean Water Act, the Missouri Clean Water Law, the District's Grant Agreements and the Rules and Regulations of the United States Environmental Protection Agency, and is necessary, proper and advisable to assure that the District's Wastewater System is adequately repaired, rehabilitated, and replaced so that the Wastewater System will not deteriorate and will remain operable for current and future customers of the District; and WHEREAS, as a part of the District's annual audit, the District's auditors include, as an operating expense of the District, depreciation of the District's "utility plant in service" calculated on a straight-line basis over the estimated useful life of the District's System, which depreciation is not presently being funded by the District; and 2 WHEREAS, the State Auditor of Missouri issued an audit report dated August 31, 1988, setting forth the results of an audit of the District for the year ended June 30, 1986 (the "State Audit") which notes that the District does not include depreciation expense when setting Wastewater User Charges. The State Audit also includes the following statement: "The District is not providing funds to be used for the future maintenance and/or replacement of the treatment works as it deteriorates over its useful life. This could place great financial burdens on future customers. The use of depreciation in the rate setting process could provide funds for future maintenance and/or replacement of the treatment works." The State Audit recommends that the District consider using depreciation expense in addition to replacement costs in calculating Wastewater User Charges; and WHEREAS, the Board has caused a study of its Wastewater User Charges to be prepared by its rate consultants, which recommends modification of the District's Wastewater User Charges to provide the District sufficient revenues to operate and maintain the District's sewer facilities and to provide funds for needed replacement projects; and WHEREAS, the Board is desirous of establishing a policy for funding a portion of the cost of replacement and depreciation of the Wastewater System through the Wastewater User Charge and of creating a fund for such purpose. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: 3 Section One. Definitions of Words and Terms. In addition to words and terms defined elsewhere in this Ordinance, the following words and terms as used in this Ordinance shall have the following meanings, unless some other meaning is plainly intended: "Board" means the Board of Trustees of the District. "District" means The Metropolitan St. Louis Sewer District. "Property" means an improved lot or parcel of real property, whether public or private, which is Served by the System. "Served" means Property connected, either directly or indirectly, to a sanitary or drainage facility owned or operated by the District, or to Property which otherwise discharges Wastewater directly or indirectly into such facilities, or if the discharge of such substances therefrom ultimately enters said facilities. "Wastewater" means the water-borne wastes emanating from Property together with such groundwater, surface water, or Stormwater as cannot be avoided. "Wastewater System" means the entire sewer and drainage systems and facilities owned and operated by the District for the collection, storage, handling, and treatment of Wastewater and combined sewers for the collection, storage, treatment and handling of Wastewater and Stormwater to serve the needs of the District and its inhabitants and others, including all 4 appurtenances and facilities connected therewith or relating thereto, together with all extensions, improvements, additions and enlargements thereto hereafter made or acquired by the District. Section Two. Replacement Fund. That there is hereby created a fund to be known as the Sanitary Replacement Fund. The monies in the Sanitary Replacement Fund shall be maintained by the Secretary-Treasurer of the District, shall be invested in accordance with applicable provisions of the District's Plan relating to the investment of other District funds, and the net earnings on such investments shall be deposited in the Sanitary Replacement Fund. Funds in the Sanitary Replacement Fund shall be used only to meet the costs of repairing, rehabilitating and replacing the District's Wastewater System. Funds in the Sanitary Replacement Fund shall be expended as authorized by ordinance adopted by the Board. Should a balance remain in the Sanitary Replacement Fund at the end of any fiscal year, then said balance shall be carried forward in the Sanitary Replacement Fund and used for the purposes of such fund in the following year. Section Three. Transfers to Sanitary Replacement Fund. The Board shall transfer annually a portion of the funds collected from the Wastewater User Charge to the Sanitary Replacement Fund. The amount of funds to be transferred shall be determined by the Board as a part of its annual budget. Section Four. Replacement Policy. The Board conducts a review of its schedule of Wastewater User Charges, not less often than every two years, to assure that such schedule of Wastewater User Charges maintains the proportionate distribution 5 of cost of service among users and user classes and generates sufficient revenue to pay the total costs of operation and maintenance (including replacement) of the Wastewater System. The Board, as a part of such review, shall include in the Wastewater User Charge funds for the repair, rehabilitation and replacement of the Wastewater System as required by the Clean Water Act, the Missouri Clean Water Act, the District's Grant Agreements and the rules and regulations of the United States Environmental Protection Agency, as is consistent with good accounting and rate-making principles, and as is necessary, proper and advisable to assure that the Wastewater System will remain operable for current and future customers of the District. The foregoing Ordinance was adopted May 13, 1992. 6 REDLINED REVISION INSTRUCTIONS FROM: Thomas DELIVER THIS JOB TO: WP OPER. Julie WP DOC. NO. 0661m PROOFREADING REDLINE CLIENT REDLINE ADDITIONS = Double Underscored ADDITIONS = Double Underscored DELETIONS = ànumberà (à1à) DELETIONS = Only à appears PLACEMENT = Deleted text at end PLACEMENT = No deleted text prints of document preceded by ànumberà ARCHIVE BEFORE AFTER or BOTH REVISIONS ARE MADE WOULD LIKE PROOFREADING PRINTOUT COMPARING REDLINE # to or CLIENT REDLINE COMPARING REDLINE # to WP REV # DATE REDLINE NUMBER ATTORNEY HANDWRITTEN NOTES 1 None 2 None 3 11/03/86 001 4 11/06/89 003 5 11/07/89 None 6 11/07/89 4 7 11/20/89 5 8 11/20/89 None CLIENT #1351 CLIENT NAME:Missouri Sewer District MATTER #55311 MATTER NAME:General Financing 7 WHAT IS JOB ABOUT? Replacement Fund Ordinance We can print a single spaced document to appear double spaced. Is this what you want? Yes No WP DOCUMENT - PRINTOUT ONLY: FINAL or DRAFT WP DOCUMENT - PRINT ALL PAGES: ONLY REVISED PAGES: HOW WP DOC WILL BE FINALIZED Short (8-1/2 x 11) Copy Paper 10 pitch Courier Long (8-1/2 x 13) Bond Paper 10 pitch Artisan Opinion Letterhead 10 pitch Landscape Single spaced Letterhead 12 pitch Courier Double spaced T&M Memo 12 pitch Letter Gothic Safety Paper - 12 pitch Landscape RIGHT MARGIN Color 15 pitch Portrait Justified Envelopes 15 pitch Landscape Unjustified Labels Proportional Space SPECIAL HEADER/FOOTER (DRAFT NO., DATE, ETC.): WP OPERATOR COMMENTS: Scan job; spell and 0159 run JUSTIFIED/SPELL: [D]istrict is O.K. Rev 1-cem; rev 2-spell all/dlb; Rev 3-spell p.1/nes; Rev 4-spell 8 all/hmd; Rev 5/spell p.3-cc; rev 6-no spell delete/dlb; Rev 7/MINOR-no spell/pj; Rev 8, spell-all, jac;