HomeMy Public PortalAboutFiscal Year 2021 Annual Comprehensive Financial Report (ACFR)THE METROPOLITAN ST. LOUIS SEWER DISTRICT • ST. LOUIS, MISSOURI
ANNUAL COMPREHENSIVEFINANCIAL REPORT
FISCAL YEARS ENDED JUNE 30, 2021 AND 2020
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THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
ST. LOUIS, MISSOURI
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED JUNE 30, 2021 AND 2020
Report Prepared And Submitted By The
Department of Finance
Marion M. Gee
Director Of Finance
Contents
Page
Part I –Introductory Section:
Letter of Transmittal ....................................................................................................................i
Organization Chart ....................................................................................................................xii
Certificate Of Achievement For Excellence In Financial Reporting ......................................xiii
Part II –Financial Section:
Independent Auditors’ Report .....................................................................................................1
Management’s Discussion And Analysis ....................................................................................3
Basic Financial Statements
Statements Of Net Position .................................................................................................18
Statements Of Revenues, Expenses, And Changes In Net Position .................................20
Statements Of Cash Flows ..................................................................................................21
Statements of Fiduciary Net Position .................................................................................23
Statements of Changes in Fiduciary Net Position .............................................................24
Notes To Financial Statements ...........................................................................................25
Required Supplementary Information
Schedule Of Changes In Net Pension Liability And Related Ratios ..............................110
Schedule Of Employer Contributions –Employees’ Pension Plan .................................111
Schedule Of Changes in Total OPEB Liability ................................................................112
Part III – Statistical Section:
Net Position By Component .....................................................................................................113
Changes In Net Position ..........................................................................................................114
Operating Revenues By Source ...............................................................................................115
Operating Expenses .................................................................................................................116
Non-Operating Revenues And Expenses ................................................................................117
User Charge Rates ...................................................................................................................118
User Charge Revenues .............................................................................................................119
Sewer User Charges (Composite-Annual)..............................................................................120
Number Of Customers By Type...............................................................................................121
Ten Largest Customers ............................................................................................................122
Ratios of Outstanding Debt By Type.......................................................................................123
Computation Of Overlapping Debt .........................................................................................124
Pledged Revenue Coverage ......................................................................................................125
Demographic And Economic Statistics ...................................................................................126
Principal Employers (St. Louis Metropolitan Area)...............................................................127
Employment Level....................................................................................................................128
Average Flow ............................................................................................................................129
Operating And Capital Indicators ...........................................................................................130
Introductory Section
Vision Statement
Quality Service Always
Mission Statement
To protect the public’s health, safety, and water
environment by responsibly providing wastewater
and stormwater management
Values
Integrity
Teamwork
Excellence and Innovation
The District Employees
Customer Satisfaction
Mission, Vision, Value statements are important elements of a
strategic business plan. The Mission statement keeps the
District focused on its essential activity, the Vision statement
points to its ideal purpose, and the Value statement conveys the
principles that must shape our actions.
i
October 21, 2021
The Board of Trustees
The Metropolitan St. Louis Sewer District
The Annual Comprehensive Financial Report (“ACFR”) of The Metropolitan St. Louis
Sewer District (“MSD” or the “District”) for the fiscal year (“FY”)ended June 30, 2021 is
submitted herewith. The District’s Finance Department prepared this report. The
District is responsible for the accuracy of the data and the completeness and fairness of
the presentation of the financial statements and other information presented herein. We
believe the presentation is accurate in all material respects and includes all disclosures
necessary to enable the reader to gain a reasonable understanding of the District’s
financial activities. In the ACFR, the District’s financial activities are measured on a
single enterprise fund basis where all funds of the District and its sub-districts are
consolidated.
The District’s ACFR includes an Introductory Section, a Financial Section, and a
Statistical Section. The Introductory Section includes this transmittal letter, an
organization chart as of June 30, 2021 which lists the District’s Board of Trustees, Rate
Commission Chair,members of the Civil Service Commission,and management staff and
the Government Finance Officers Association’s Certificate of Achievement For Excellence
In Financial Reporting presented to the District for its Annual Comprehensive Financial
Report for the fiscal year ended June 30, 2020. The Financial Section includes the
independent auditors’ report, management’s discussion and analysis, the District’s basic
financial statements and required supplementary information. The Statistical Section
includes financial, economic, and demographic information, generally presented on a
multi-year basis.
The ACFR includes all funds of the District. The operations of these funds, as reflected
in the financial statements, are under the control of the District’s governing body. The
District has determined there were no other agencies or entities that met the established
criteria for inclusion in the reporting entity. Separate from the District’s enterprise
financial statements, the District’s fiduciary component unit’s financial statements for
The Metropolitan St. Louis Sewer District Employees’ Pension Plan are also included in
the ACFR.
Metropolitan St. Louis
Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
www.msdprojectclear.org
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The Metropolitan St. Louis Sewer District
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Organization
MSD was created in 1954 to provide a metropolitan-wide sewer system to serve 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.
When the District began operations, it took over the publicly owned wastewater and
stormwater drainage facilities within its jurisdiction and began the construction of an
extensive system of collector and interceptor sewers and treatment facilities. In 1977,
voters approved the District’s annexation of a 270 square mile area of the lower Missouri
River and lower Meramec River watersheds. The District purchased the Fee Fee Trunk
Sewer Company and the Missouri Bottoms Sewer Company in 1978. MSD has since
acquired other investor-owned or municipally operated systems.
The District’s service area now encompasses 520 square miles including all 66 square
miles of the City of St. Louis and 454 square miles of St. Louis County. The current
population served by the District is approximately 1.3 million representing
approximately 428,000 accounts.
MSD is organized pursuant to Article VI, Section 30 of the Missouri State Constitution
that empowers the people of St. Louis County and the City of St. Louis “to establish a
metropolitan district for functional administration of services common to the area.” MSD
is the only district established pursuant to that section ofthe Missouri State Constitution.
The Charter of MSD (“Plan”),approved by voters in 1954 and amended in 2000, 2012 and
2021, established the District. The Plan describes the District as “a body corporate,a
municipal corporation, and a political subdivision of the state.” As a political subdivision
of the state, MSD is comparable to a county or city, such as St. Louis County or the City
of St. Louis.
The Plan established the governing body of the District as a six-member Board of
Trustees (“Board”) with three members appointed by the Mayor of St. Louis and three
members appointed by the St. Louis County Executive. Each Trustee shall be appointed
for a term of four years. No Trustee shall serve more than two full consecutive terms plus
any portion of an unexpired term; provided,however,that each Trustee shall serve until
his/her successor shall be appointed and qualified. No more than two trustees appointed
from the City or County shall be a member of the same political party.
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The Metropolitan St. Louis Sewer District
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Unlike a corporation’s board of directors that is responsible solely to the stockholders who
choose to invest in the corporation,MSD’s Board members are trustees of public property
and public funds. They are responsible to all citizens within the District.
According to the Plan, the Board enacts District ordinances, determines policies, and
appoints the Executive Director, the Secretary-Treasurer, and the Internal Auditor. The
Executive Director appoints all other District officials. Among its duties, the Board makes
all appropriations, approves contracts for improvements, and engages an accounting firm
to perform the annual independent audit of the District.
The Plan prescribes other duties of the Board and grants numerous broad powers,subject
to federal and state laws, to the District and the Board of Trustees. Among other things,
the Plan outlines the following requirements or provisions:
Requires that MSD operate with a balanced budget;
Details how MSD can tax property and requires an annual public hearing
on all taxes levied by the District;
Details how MSD can establish user charges;
Requires MSD to establish civil service rules and regulations governed by a
Civil Service Commission;
Provides how the original boundaries of the District may be extended to
include any area in St. Louis County;and
Requires MSD to approve all plans and designs for proposed construction,
alteration, or reconstruction of sewer or drainage facilities within the
District’s boundaries.
The District is also governed by the Missouri State Constitution and various federal and
state laws that, among other requirements,mandate the following:
MSD must hold permits for all sanitary discharges. These permits require a
minimum of secondary treatment;
MSD must provide wastewater treatment in an area-wide manner to qualify
for federal and state grants;
MSD must operate, maintain, and replace facilities to provide proper
wastewater treatment or be subject to penalties and fines;and
MSD must set user charge rates in compliance with the Federal Clean Water
Act. These rates must be submitted to the Missouri Department of Natural
Resources to receive future construction grants and to avoid the possibility
of refunding past grants.
During fiscal 2021 the primary source of funding for the operation and maintenance of
MSD’s wastewater system was a user charge averaging $674.31 per year or $56.20 per
month for a single-family residence. The District’s charges for residential wastewater
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service are tied to the amount of measured water usage during a winter quarter. For
residential properties without water meters,the charges are based on housing attributes
(such as the number of rooms, baths, and toilets) that correlate to water usage. That
methodology is the same billing methodology used by the City of St.Louis Water Division
for their non-metered properties. Multi-family residential and non-residential rates are
proportionate to the single-family charge and are based on water consumption and the
strength of the discharge. During fiscal year 2021, District personnel continued to closely
monitor the impact of COVID-19 on our revenue streams, particularly volume-based
wastewater charges related to commercial customers, and made the needed adjustments
such as reducing discretionary spending to ensure that District expenditures were
supported by the reduced revenues.Similar efforts will occur again in fiscal year 2022.
During fiscal 2021 the District’s stormwater system was funded through property taxes
of 1.8¢ per one hundred dollars assessed valuation for stormwater regulatory activities
and 9.0¢ per one hundred dollars assessed valuation for operations and maintenance of
the District’s stormwater utility. The District also performs limited capital improvements
with the revenues generated by the 9.0¢ tax.
Prior to fiscal year 2017, the operation and maintenance of the District’s stormwater
system was funded by a combination of property taxes and a flat fee billing of 24¢ per
month for residential and commercial properties and 18¢ per month per unit for multi-
unit properties. On April 5, 2016, over 62% of voters in MSD’s service area approved
Proposition S which placed all MSD customers under the same property tax rates to fund
stormwater services. The flat fee billings were eliminated.
MSD also receives some federal, state, and local grants to help defray the cost of
constructing sewage treatment and drainage facilities and improvements. The District
also charges fees for plan review, permits, construction inspection of new system
development, and special discharges. The District charges a uniform connection fee in all
service areas.
The District, itself, may issue general obligation bonds and revenue bonds to finance the
cost of improvements and extensions to the sewer system. The District also may issue, on
behalf of each of its subdistricts, general obligation bonds, revenue bonds, or special
assessment bonds.
Major Initiatives Affecting the Financial Resources of the District
Throughout MSD’s service area, there are hundreds of points where a combination of
rainwater and wastewater discharges into local waterways from the wastewater sewer
system during moderate to heavy rainstorms. These sewer overflow points act as relief
valves when too much rainwater enters the sewer system, and without them, our
community could experience thousands of basement backups and/or extensive street
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flooding. (Even with these overflow points, basement backups can easily number in the
dozens or hundreds during particularly heavy rains). Depending on where sewer
overflows are located within MSD’s system, they are classified as combined sewer
overflows or constructed separate sewer overflows.Many of these overflows are a legacy
of the way our wastewater systems were first built. Though most overflows predate the
District’s creation in 1954, they are still MSD’s responsibility and efforts to address the
problem must continue.
Sewer overflows have been a significant focus of MSD’s work for many years. From 1992
to 2012, MSD spent approximately $2.7 billion to eliminate over 380 overflows. Today,
our work to address sewer overflows and improve water quality continues through a
Consent Decree that stems from a lawsuit filed against MSD by the State of Missouri and
the United States Environmental Protection Agency (“EPA”) in June 2007. The State of
Missouri and the EPA were later joined in the lawsuit by the Missouri Coalition for the
Environment.
After lengthy mediation, the EPA announced a settlement agreement in August 2011. On
April 27, 2012, the United States District Court for The Eastern District of Missouri
entered a Consent Decree, thus concluding the litigation. The Consent Decree calls for
more than $6 billion in upgrades to the existing wastewater sewer system (in 2018
dollars). Also known as MSD Project Clear, this work was originally scheduled to take
place over 23 years and addresses our community’s wastewater collection and treatment
capabilities on a system-wide basis. The work is a mammoth undertaking that will benefit
St. Louisans –and our environment –for generations to come.
On June 22, 2018, a United States District Judge approved an amendment to the Consent
Decree that extends the schedule from 23 years to 28 years. Necessary approvals were
also received from the State of Missouri on August 13, 2018. The motivation behind the
amendment is regulatory changes that compel MSD to accelerate certain projects that do
not fall within the scope of the Consent Decree. The time extension will allow MSD to
address new regulatory requirements in a fiscally responsible way, while better
projecting and controlling needed rate increases.
MSD submits rate proposals to an independent Rate Commission. The Rate Commission
was established in 2000 through voter approved amendments to MSD’s Charter. The
commission is composed of 15 member organizations representing a broad cross-section
of MSD customers and is meant to provide the public with a formal role in MSD’s rate
setting process.
On April 6, 2021, voters in St. Louis City and St. Louis County overwhelmingly approved
Proposition Y—81.6% —to fund MSD’s four-year, $1.58 billion capital improvement
program to meet regulatory and system improvement needs. By approving Proposition Y,
voters are allowing MSD to borrow $500 million in bonds to design and build nearly 300
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The Metropolitan St. Louis Sewer District
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projects over the next three years to improve the wastewater system by eliminating
overflows, reduce basement backups, repair and rehabilitate the system, make upgrades
at the Bissell Point and Lemay Wastewater Treatment Plants, and retire the Fenton
Wastewater Treatment Plant. Wastewater rates will increase 3.4% in FY 2022, 3.5% in
FY 2023, and 3.7% in FY 2024.
Combined with similar bond elections held in 2004, 2008, 2012 and 2016, voters residing
within MSD’s service area have authorized a total issuance of $3.12 billion in wastewater
revenue bonds. As of June 30, 2021, MSD has issued $2.27 billion of the total
authorization. Consistent with past financing strategies, MSD anticipates funding future
Consent Decree and other work related to the wastewater collection and treatment
system through a combination of rate increases and voter approved bond issuances.
As the pandemic continues, our vigilance and commitment to our employees and our
community has helped to curb the spread of COVID-19. We continued weekly employee
communications, with additional updates as needed. Reduced density of employees in the
building continued. The District added additional sanitizer stations and high-touch
surfaces remain covered with Nano-Septic coverings. Face-to-face internal meetings are
kept to a minimum, and social distancing and masks are required throughout all of MSD
facilities, according to local laws.
In-person community outreach was no longer possible, so MSD shifted to virtual spaces
to continue communication with stakeholders. Project meetings and outreach to
municipal partners and contractors are now all done virtually. Plans to remain virtual
will continue until it is once again safe to return to in-person meetings.
Operations
The Executive Director and his staff administer the operation and maintenance of the
District’s collection and treatment systems. The District’s wastewater, stormwater, and
combined sewer collection system includes approximately 9,400 miles of pipe and channel
and will grow larger over the long term due to new development. Some years may see a
reduction in total miles of pipe. This is due to the replacement of inefficiently placed pipe
with shorter,more direct lines of pipe. The District’s responsibilities for stormwater
drainage range from cleaning and maintaining street inlets to operating and maintaining
the floodwall pump stations along the Mississippi River.
MSD currently operates seven wastewater treatment facilities. These facilities treated
an average flow of 300.6 million gallons per day (“MGD”)in fiscal 2021 compared to 367.5
MGD in fiscal 2020. Flows were lower in fiscal year 2021 due to fewer rain events than
occurred in fiscal 2020. The design capacity and average flow, by watershed, in MGD was
as follows in fiscal 2021:
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The Metropolitan St. Louis Sewer District
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MAJOR
WATERSHED
LEVEL OF
TREATMENT
NUMBER
OF
FACILITIES
DESIGN
CAPACITY
(MGD)
AVERAGE FLOW
FISCAL 2021
(MGD)
Mississippi River Secondary Two 472.00 222.00
Missouri River Secondary Two 78.00 50.60
Meramec River Secondary Three 42.75 28.00
Total Seven 592.75 300.60
In addition to construction initiated by the District to protect the public’s health and
property from raw sewage and flooding, the District also provides various engineering-
related design review and inspection services for the construction of wastewater and
stormwater sewers by individuals, businesses, and municipalities in the community.
Economic Conditions In The St. Louis Metropolitan Area
As a rule, the District’s major revenue sources do not fluctuate with the local and national
economy as much as local governments that depend on sales or income taxes for their
major sources of revenue. The combined unemployment rate for the City of St.Louis and
St. Louis County was 5.8 percent in June 2021 and lower than the national
unemployment rate of 5.9 percent for the same time period.The June 2021
unemployment rate of 5.8 percent is lower than the June 2020 rate of 9.6 percent due to
the diminishing impact of the COVID-19 pandemic.
MSD has its own internal barometers for measuring economic development within the
District. These are listed below for fiscal 2021 and 2020:
2021 2020
Sewer Plan Reviews:
Number of Plans Approved 525 435
Number of Miles of Sewers 44 41
Sewer Construction Permits:
Number of Permits Issued 2,130 2,277
Number of Miles of Sewers 21 23
Customer Connections:
Number of Connection Permits Issued 1,621 1,742
Connection Fee Revenue (in millions)$1.6 $0.9
Value of Sewers Dedicated to
MSD by Developers (in millions) $12.9 $6.5
Over the years, the St. Louis economy has undergone a transformation from reliance on
traditional manufacturing industries to those industries based on advanced technology
and services. The St. Louis area is a center for health care, biotechnology, banking,
finance, transportation, tourism, and education and has a strong and diverse
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The Metropolitan St. Louis Sewer District
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manufacturing economy. The area has an abundance of energy, water, and sewerage
facilities and can sustain future economic growth.
Financial Information
Proprietary Operations. The current financial condition of MSD remains stable. The
District realized a net operating income of $136.7 million in fiscal 2021 compared to a net
operating income of $141.2 million the prior year. The decrease in net operating income
was driven by a decline in other income of $6.7 million. O ther income in FY 2020 included
$6.6 million received as a result of a lawsuit settlement. Operating expenses decreased
$6.3 million due primarily to a $10.9 million decrease in general and administrative
expenses which consisted of a $12.3 million decline in Governmental Accounting
Standards Board Statement No.68 related pension expense and a reduction of $2.4
million in litigation and claim expenses; offset by a $3.8 million increase in other
administrative expenses such as benefits and compensation and property insurance. A
more in-depth analysis of the District’s financial position and the magnitude ofthe capital
improvement and replacement program (“CIRP”)is provided in the Management’s
Discussion and Analysis section that appears later in this report.
Budgetary Controls. The District’s Plan requires MSD to submit a proposed budget to the
Board by March 15th each year. After Board review, a final budget is approved in June.
The District’s Plan also requires MSD to maintain budgetary controls and to adopt a
balanced budget. The objective of these budgetary controls is to ensure compliance with
legal provisions embodied in the appropriation process approved by the Board. The
annual appropriated budget includes activities of the District’s operating and debt service
funds. The Board adopts ordinances to appropriate funds for capital improvement
expenditures at the time of the contract award and acceptance of any grant offers.
Budgetary control is by Division and major expenditure category within the General
Fund, each Debt Service Fund, and each capital improvement contract. The District
utilizes an encumbrance accounting system in conjunction with internal variance and
projection analysis to maintain budgetary control. Certain encumbrances carry over from
one year to the next as approved by the Board during the budget process.
Monthly and year-end financial reports are prepared in accordance with United States
generally accepted accounting principles for Enterprise Funds. Adjustments are made to
the accounting records,where necessary,to reflect the full accrual method of accounting.
Under the full accrual method of accounting, revenues are recognized when earned and
expenses are recorded as liabilities when incurred. Encumbrances and unearned capital
and operating grants are eliminated under the full accrual method of accounting. These
amounts are disclosed as commitments in the notes to financial statements.
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The Metropolitan St. Louis Sewer District
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Cash Management. In compliance with its Plan, the District invests temporarily idle
funds in cash, cash equivalents and investments such as collateralized certificates of
deposit, collateralized repurchase agreements, obligations of any agency of the United
States, and United States Treasury instruments. The District utilizes competitive
bidding for investment purchases and monitors market conditions daily.
Risk Management. In-house staff and consultants jointly conduct risk management
activities. MSD maintains third-party commercial insurance coverage for various risks
while self-insuring for other risks and liabilities at levels customary for similar
enterprises. The District maintains replacement cost property and casualty insurance
with a policy limit of $1.0 billion on certain facilities and equipment that have an
estimated replacement cost of $935 million.The District assumes the risk of loss
(including payment of water backup claims to its customers) on most of its underground
pumping facilities and collection system. MSD is one of the few sewer districts in the
country known to provide water backup claim coverage to its customers. To minimize
exposure to loss, the District inspects its facilities regularly and performs preventative
maintenance on them.
MSD maintains automobile, general liability and excess liability insurance. The District
is self-insured for workers’ compensation and funds those costs through annual
appropriations from the District’s general insurance fund. The District maintains
reinsurance for workers’ compensation liabilities in excess of specified limits up to the
statutory limit. Risk control activities include using a third-party claims administrator,
maintaining a computerized claim tracking system, and annually reevaluating workers’
compensation cost. The District also has programs designed to promote safety in the
workplace and employee wellness.
The District provides group medical coverage for its employees and offers dependent
medical coverage on a contributory basis through a self-insured plan. Effective February
1,2014,the District maintained stop loss coverage for specific claims exceeding $175,000
per year and for total annual claims greater than 125 percent of the annual claims
estimate.The District provides its employees with contributory group dental insurance
coverage and non-contributory life insurance and contributory optional life insurance
coverage. The District also contributes $125 every fiscal year, up to a maximum of $500,
to a vision care program for employees.Effective July 1,2013,spouses were eligible to use
the benefits; effective July 1, 2016, dependent children up to age 26 were eligible to use
the benefits; however, the amount could not exceed the maximum amount of $500. The
District reevaluates insurance coverage and providers annually by reevaluating medical
insurance claims and health benefit costs.
For most construction projects, insurance is obtained by the individual contractor and
included in the contract price.
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The Metropolitan St. Louis Sewer District
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Internal Controls. District Management is responsible for designing, establishing, and
maintaining an internal control system that protects District assets from loss, theft, or
misuse and ensures that adequate accounting data is compiled to prepare financial
statements in conformity with United States generally accepted accounting principles.
Internal control systems are designed to provide reasonable, but not absolute,assurance
that these objectives are met. The concept of reasonable assurance recognizes that the
cost of a control should not exceed the benefits likely to be derived and that the evaluation
of costs and benefits requires estimates and judgments by management. The District’s
internal control system is subject to periodic evaluation by Management, the Board and
the District’s independent accountants.
Other Information
Audit Requirements. The District’s Plan requires an annual audit by independent
certified public accountants. The District’s ACFR includes a report on the District’s
financial statements by the accounting firm of CliftonLarsonAllen LLP.
Besides meeting the requirements set forth in the Plan,the annual audit is also designed
to meet the requirements of the 2013 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) that was
issued by the Office of Management and Budget (“OMB”).A Single Audit Report will be
issued for the year ended June 30,2021.
The financial statements of The Metropolitan St. Louis Sewer District Employees’
Pension Plan, The Metropolitan St. Louis Sewer District Deferred Compensation Plan
and Trust and The Metropolitan St. Louis Sewer District Defined Contribution Plan are
also audited annually. These audit reports were issued for the periods ending December
31, 2020 and 2019 and are available to interested parties upon request.
Awards. The Government Finance Officers Association of the United States and Canada
(“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to
MSD for its ACFR for the fiscal year ended June 30, 2020. The Certificate of Achievement
is a prestigious national award that recognizes conformance with the highest standards
for preparation of state and local government financial reports.
To be awarded the Certificate of Achievement,a government unit must publish an easily
readable and efficiently organized ACFR, the contents of which conform to program
standards. The ACFR must satisfy both U.S. generally accepted accounting principles
and applicable legal requirements. A Certificate of Achievement is valid for one year only.
The District has received a Certificate of Achievement for the last thirty-three
consecutive years. We believe the current ACFR continues to conform to the GFOA’s high
standards, as reflected in the Certificate of Achievement program requirements, and are
submitting it again this year for consideration. The District also received the GFOA’s
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The Metropolitan St. Louis Sewer District
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Distinguished Budget Presentation award for its fiscal 2021 annual budget. The District
has received this award for thirty-four consecutive years. We believe the fiscal year 2022
budget presentation continues to meet the GFOA’s high standards and have submitted it
for consideration. The District also received the GFOA’s Award for Outstanding
Achievement in Popular Annual Financial Reporting (“PAFR”) for its fiscal year 2020
PAFR. W e have received this award for every year since the publication of our first PAFR
for FY 2012 and intend to submit the FY 2021 PAFR for consideration.
Marion M. Gee
Director of Finance
xii
ORGANIZATION
(As of June 30, 2021)
BOARD OF TRUSTEES
Michael Evans, Chair; Amy Fehr, Vice Chair;
Ret. Col. Richard Wilson; Greg Nicozisin; Brian K. Watson; Brian Wahby
OFFICE OF INTERNAL AUDITOR RATE COMMISSION
Leonard P. Toenjes, Chair
OFFICE OF SECRETARY
TREASURER
Tim R. Snoke
Secretary/Treasurer
CIVIL SERVICE COMMISSION
Rev. Michael F. Jones
Marylynn Sims
Michael Harvey
EXECUTIVE DIRECTOR
Brian L. Hoelscher/CEO
FINANCE
Marion M. Gee
Director
OFFICE OF GENERAL COUNSEL
Susan M. Myers
General Counsel
OPERATIONS
Bret A. Berthold
Director
ENGINEERING
Rich Unverferth
Director
OFFICE OF HUMAN RESOURCES
Tracey Coleman
Director
INFORMATION TECHNOLOGY
Jonathon C. Sprague
Director
xiii
Government Finance Officers Association
Certificate Of
Achievement
For Excellence
In Financial
Reporting
Presented to
Metropolitan St. Louis Sewer District
Missouri
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
Financial Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
SERVICE AREAS
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(1)
INDEPENDENT AUDITORS’ REPORT
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities and the
aggregate remaining fund information of The Metropolitan St. Louis Sewer District (the District), as of
and for the years ended June 30, 2021 and 2020, and the related notes to the financial statements,
which collectively comprise the District’s financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the business-type activities and the aggregate remaining fund information
of the District as of June 30, 2021 and 2020, and the respective changes in its financial position and,
where applicable, its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Board of Trustees
The Metropolitan St. Louis Sewer District
(2)
Emphasis of Matter
During fiscal year ended June 30, 2021, the District adopted GASB Statement No. 84, Fiduciary
Activities. As a result of the implementation of this standard and the change in accounting principle (see
Note 1), the District added new fiduciary financial statements. In addition, the District adopted GASB
Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period (see
Note 1). Our auditors’ opinions were not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, Schedule of Changes in Net Pension Liability and Related
Ratios for the Employees’ Pension Plan, Schedule of Employer Contributions to Employees’ Pension
Plan and Schedule of Changes in Total OPEB Liability, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements. The introductory section and statistical
section are presented for purposes of additional analysis and are not a required part of the basic
financial statements. These sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 21, 2021, on our consideration of the District’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the District’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the District’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
St. Louis, Missouri
October 21, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Years Ended June 30, 2021 and 2020
The annual report of The Metropolitan St. Louis Sewer District (“MSD” or the “District”)
includes the independent auditors’ report, management’s discussion and analysis
(“MD&A”), and the financial statements accompanied by notes essential to the user’s
understanding of the financial statements.
Management of the District has provided this MD&A to be used in combination with the
District’s financial statements. This narrative is intended to provide the reader with
more insight into management’s knowledge of the transactions, events, and conditions
reflected in the accompanying financial statements and the fiscal policies that govern the
District’s operations.
2021 Financial Highlights
The District increased capital assets by $230.5 million as a result of increases in
construction in progress ($181.1 million), land ($1.2 million)and depreciable
capital assets net of depreciation ($48.1 million).
The District placed $141.8 million of capital assets into service during fiscal year
2021. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $120.3 million
Treatment and disposal plant and equipment $14.2 million
General plant and equipment $6.1 million
Land $1.2 million
The net increase to accumulated depreciation was $86.7 million which takes into
consideration the recording of depreciation relating to new assets in addition to
depreciation on existing assets offset by the accumulated depreciation relieved for assets
retired during the year.
During the 2021 fiscal year the District implemented three Governmental Accounting
Standards Board (“GASB”) Statements and two Implementation Guides. See Note 1,
Summary of Significant Accounting Policies, in the accompanying notes to the financial
statements for more detailed information.
2020 Financial Highlights
The District increased capital assets by $216.2 million as a result of increases in
construction in progress ($56.6 million), land ($4.1 million)and depreciable capital
assets net of depreciation ($155.5 million).
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 4
The District placed $248.3 million of capital assets into service during fiscal year
2020. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $225.8 million
Treatment and disposal plant and equipment $13.9 million
General plant and equipment $4.5 million
Land $4.1 million
The net increase to accumulated depreciation was $83.0 million which takes into
consideration the recording of depreciation relating to new assets in addition to
depreciation on existing assets offset by the accumulated depreciation relieved for assets
retired during the year.
During the 2020 fiscal year the District did not implement any Governmental Accounting
Standards Board Statements.
Required Financial Statements
The basic financial statements presented by the management of the District include the
Statements of Net Position; Statements of Revenues, Expenses,and Changes in Net
Position; Statements of Cash Flows; Statements of Fiduciary Net Position; and
Statements of Changes in Fiduciary Net Position. These statements are prepared using
the accrual basis of accounting in conformity with generally accepted accounting
principles in the United States of America as applied to government units. This method
of accounting recognizes revenue at the time it is earned and expenses when the related
liability occurs. As a result of using this method of accounting, the District’s performance
over the time period being reported is more easily determinable. The District’s basic
financial statements also include the Notes to the Financial Statements and Required
Supplementary Information. In addition, certain statistical supplementary information
is presented for additional analysis but is not a required part of the basic financial
statements.
The District implemented GASB Statement No. 84, Fiduciary Activities (“GASB
Statement No. 84”) in fiscal 2021 and included the financial statements of the District’s
fiduciary activities in conformity with generally accepted accounting principles in the
United States of America. The fiduciary activities of the District include The Metropolitan
St. Louis Sewer District Employees’ Pension Plan (“Pension Plan”).
The Statements of Net Position provide a report of the District’s current, restricted, and
other non-current assets such as cash, investments, receivables, and capital assets. Also,
the Statements of Net Position provide a summary of the District’s current, restricted,
and non-current liabilities, including contracts and accounts payable, deposits and
accrued expenses, pension and OPEB liabilities and bonds and notes payable. Deferred
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 5
outflows and inflows of resources, where applicable, are also included. The final section
of the Statements of Net Position, the net position section, contains earnings retained for
use by the District. Increases or decreases in the net position section may be indicative
of an improving or declining financial position. This statement provides the basis for
computing rate of return, evaluating the capital structure of the District, and assessing
the liquidity and financial flexibility of the District.
The Statements of Revenues, Expenses, and Changes in Net Position summarize the
years’revenues and expenses. These statements indicate how successful the District was
at maintaining expenses below the level of revenue earned.
The Statements of Cash Flows account for the net change in cash and cash equivalents
by summarizing cash receipts and cash disbursements resulting from operating
activities, non-capital financing activities, capital, and related financing activities, and
investing activities. These statements assist the user in determining the sources of cash
coming into the District, the items for which cash was expended, and the beginning and
ending cash balances.
The Notes to the Financial Statements provide additional information that is essential to
obtain a full understanding of the data provided in the basic financial statements, such
as the District’s significant accounting policies, investment instruments, outstanding
debt, employee benefit plans, segment information and subsequent events to name a few.
The Required Supplementary Information section provides detail in support of the
changes in the net pension liability and the total other postemployment benefits
(“OPEB”) liability and information pertaining to the District’s actuarially determined
contributions to the Pension Plan.
The Statistical Section provides significant data that afford the reader a better historical
perspective and assist in assessing the current financial status and trends of the District
for which ten years of data is generally provided.
Financial Analysis
The District’s financial position improved in the current year, as evidenced by the
increase in net position of $127.3 million. The improvement is due primarily to an
increase in net investment in capital assets, subdistrict construction and improvement
funds, and unrestricted funds of $114.6 million, $5.0 million, and $11.8 million,
respectively; offset by a decrease in debt service funds of $4.1 million. The increase in
net investment in capital assets net position is comprised of a $230.5 million increase in
net capital assets and a $31.6 million increase in unspent bond proceeds and is decreased
by a $139.6 million increase in debt related to capital assets.In addition to these changes
to net investment in capital assets net position, the increase in construction-related
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 6
liabilities of $6.1 million, the recognition of a deferred gain on debt refunding (net of
amortization) of $1.4 million and the $0.4 million amortization of deferred losses
decreased net investment in capital assets. The sum of these six components nets to the
$114.6 million increase in net investment in capital assets net position. The $4.1 million
decrease in the debt service funds net position is due primarily to the $4.0 million cash
reserves paid out in fiscal 2021 to current refund certain debt.
Condensed Financial Statements and Analysis
2021 Analysis
Current,non-current,restricted, and other assets increased $40.6 million or 5.2% in the
current year. The increase is predominately due to an increase in investments and cash
due to increased unspent bond proceeds and more taxes levied and collected.
Increa se Increase
June 30,June 30,(Decrease)Ju ne 30,(Decrease)
2021 2020 2021-2020 2019 2020-2019
As sets:
Curre nt, non-current, re stricte d, an d o the r asse ts 827,663$ 787,043$ 40,620$ 821,030$ (33,987)$
Capital asse ts (net of accumulated de preciatio n)4,078,342 3,847,889 230,453 3,631,716 216,173
Total Assets 4,906,005 4,634,932 271,073 4,452,746 182,186
Defer red Ou tflows of Res ources :
Bonds an d n otes payable -Deferred lo ss o n re fundin g 5,469 5,889 (420)11,343 (5,454)
Pensio n-relate d o utflows 10,476 15,673 (5,197) 34,238 (18,565)
OPEB-relate d o utflows 3,537 2,843 694 1,246 1,597
Total Deferred Ou tflows of Res ources 19,482 24,405 (4,923)46,827 (22,422)
Liabilities :
Current liabilitie s 165,821 153,611 12,210 149,991 3,620
Non-current liabilitie s 1,832,387 1,722,223 110,164 1,723,830 (1,607)
Total Liabilities 1,998,208 1,875,834 122,374 1,873,821 2,013
Defer red Inflows of Res ources :
Bonds an d n otes payable -Deferred gain o n refundin g 2,793 1,393 1,400 —1,393
Pensio n-relate d inflows 22,671 7,150 15,521 4,341 2,809
OPEB-re late d inflows 3,888 4,331 (443)887 3,444
Tot al Deferred In fl ows of R es ources 29,352 12,874 16,478 5,228 7,646
Net Po sition:
Ne t investm ent in capital asse ts 2,299,308 2,184,736 114,572 2,063,519 121,217
Restr ic te d 97,920 97,034 886 127,414 (30,380)
Un re stricte d 500,699 488,859 11,840 429,591 59,268
Tot al Net Po sition 2,897,927$ 2,770,629$ 127,298$ 2,620,524$ 150,105$
Co nden sed St atements of Net Po sition
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 7
Capital assets net of accumulated depreciation increased by $230.5 million or 6.0% in the
current year as the result of continued high levels of construction and acquisition of assets
by the District.
Current liabilities increased by $12.2 million or 7.9% due primarily to an increase in
contracts and accounts payable, current portion of bond and notes payable and retainage
held on capital projects.
Non-current liabilities increased by $110.2 million or 6.4% primarily due to net increases
in bonds and notes payable, total OPEB liability and deposits and accrued expenses of
$135.1 million, $1.8 million, and $1.6 million, respectively; offset by a decrease in net
pension liability of $28.3 million. The net increase in bonds and notes payable is related
to the $178.6 million new senior and subordinate debt issued in fiscal year 2021 and a
net increase in premiums received on debt issuances of $37.4 million due to premiums on
the fiscal 2021 new debt exceeding the premium retired resulting from the fiscal 2021
direct placement refunding;offset by $61.2 million for fiscal 2022 senior and subordinate
debt payments reclassified to current liabilities, $11.4 million current refunding of
existing debt,$6.4 million amortization of premiums, net of discount, and $1.9 million for
fiscal 2021 senior debt payment reclassified to current liabilities payable on new fiscal
2021 debt.
Net deferred outflows and inflows decreased $21.4 million or 185.6% due primarily to
updates to various information provided by the District’s actuary such as
economic/demographic gains or losses, assumption changes or inputs, and investment
gains or losses related to the District’s net pension liability or total OPEB liability.
2020 Analysis
Current, non-current, restricted, and other assets decreased $34.0 million or 4.1% in
fiscal year 2020. The decrease is predominately due to a decrease in investments offset
by an increase in cash due to higher sewer rates charged and maturity of investments.
Capital assets net of accumulated depreciation increased by $216.2 million or 6.0% in
fiscal year 2020 as the result of continued high levels of construction and acquisition of
assets by the District.
Current liabilities increased by $3.6 million or 2.4% due primarily to an increase in
current portion of bond and notes payable and retainage held on capital projects, offset
by a decrease in deposits and accrued expenses.
Non-current liabilities decreased by $1.6 million or 0.1% primarily due to a $17.6 million
decrease in net pension liability and total OPEB liability; offset by $15.8 million net
increase in bonds and notes payable. The net increase in bonds and notes payable is
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 8
related to the $373.8 million new senior and subordinate debt issued in fiscal year 2020;
offset by $273.4 million advance refunding of existing debt, $56.6 million for fiscal 2021
senior and subordinate debt payments reclassified to current liabilities, a net decrease in
premiums received on debt issuances of $21.4 million due to premiums retired resulting
from the fiscal 2020 refunding exceeding the premium on the fiscal 2020 new debt and
$6.6 million amortization of premiums, net of discount.
Net deferred outflows and inflows decreased $30.1 million or 72.3% due primarily to
updates to various information provided by the District’s actuary such as
economic/demographic gains or losses, assumption changes or inputs, and investment
gains or losses related to the District’s net pension liability or total OPEB liability.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 9
For the Fiscal For the Fiscal Increase For the Fiscal Incr ea se
Year En ded Year Ended (Decrease)Year Ended (Decrease)
Ju ne 30, 2021 June 30, 2020 2021-2020 Ju ne 30, 2019 2020-2019
Oper ating Revenues:
Sewer service charges 425,248$ 430,398$ (5,150)$ 399,929$ 30,469$
Provisio n for doubtful sewer
service charge acco unts (5,347) (5,612) 265 (4,349) (1,263)
Licenses, permits, and other fees 3,754 3,012 742 3,063 (51)
Oth er 3,497 10,193 (6,696) 2,478 7,715
Total Operating Revenues 427,152 437,991 (10,839) 401,121 36,870
Non-operating Revenues:
Prope rty taxe s levied by the District 43,624 35,439 8,185 34,108 1,331
Investm ent income 1,392 16,259 (14,867) 16,699 (440)
Re nt and o ther income 324 302 22 301 1
Total Non-operating Revenues 45,340 52,000 (6,660) 51,108 892
Total Revenues 472,492 489,991 (17,499) 452,229 37,762
Operating Expen ses:
Pumpin g and treatment 64,475 62,030 2,445 63,197 (1,167)
Co lle ction system mainte nance 48,113 47,652 461 45,617 2,035
Engineering 11,501 11,628 (127)11,447 181
General and administrative 55,011 65,947 (10,936) 67,462 (1,515)
Water backup claims 3,985 4,653 (668)5,600 (947)
Depreciation 91,352 87,633 3,719 83,640 3,993
Asse t management 16,024 17,195 (1,171) 13,755 3,440
Total Operating Expen ses 290,461 296,738 (6,277) 290,718 6,020
Non-operating Expen ses:
Net lo ss on dispo sal and sale of capital asse ts 990 962 28 971 (9)
Non-recurring projects and studie s 11,828 12,458 (630)15,628 (3,170)
Inte rest expense 56,616 36,119 20,497 33,082 3,037
Total Non-operating Expenses 69,434 49,539 19,895 49,681 (142)
Total Expen ses 359,895 346,277 13,618 340,399 5,878
Income B efo re Capital
Grants An d Contribu tions 112,597 143,714 (31,117) 111,830 31,884
Capital G rants And Contributio ns 14,701 6,391 8,310 17,378 (10,987)
Ch ange in Net Position 127,298 150,105 (22,807) 129,208 20,897
Net Positio n - Beginning of Year 2,770,629 2,620,524 150,105 2,491,316 129,208
Net Po sition - En d o f Yea r 2,897,927$ 2,770,629$ 127,298$ 2,620,524$ 150,105$
St atements of Rev en ues, Expen ses, a nd Changes in Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 10
2021 Analysis
Net position increased $127.3 million or 4.6% over the prior year which was a $22.8
million or 15.2% decrease from last year’s net position increase. The largest impacts to
net position were the decrease in investment income and the increase in interest expense.
Total revenue decreased by $17.5 million or 3.6%resulting primarily from the decrease
in investment income. Sewer service charges decreased $5.2 million or 1.2%due to the
impact of the COVID 19 pandemic on commercial customers’ charges.Other operating
revenue decreased $6.7 million or 65.7% primarily due to a lawsuit settlement received
on a sewer construction project in fiscal year 2020. Property taxes increased $8.2 million
or 23.1% due primarily to higher property valuation assessments and re-instatement of
tax rates for several of the stormwater subdistricts. Investment income decreased $14.9
million or 91.4% due to an unrealized loss on investments recorded in fiscal 2021
compared to an unrealized gain recognized in fiscal 2020.
Total expenses increased by $13.6 million or 3.9% resulting primarily from the increase
in interest expense. Operating expenses decreased $6.3 million or 2.1% with decreases in
general and administrative, asset management and water backup claims of $10.9 million,
$1.2 million, and $0.7 million, respectively; offset by increases in depreciation expense of
$3.7 million or 4.2% and pumping and treatment expenses of $2.4 million or 3.9%.
General and administrative decreased primarily due to a decrease in net pension expense
based on the actuarial calculation resulting from favorable market values for pension
assets. Non-operating expenses increased $19.9 million or 40.2% due to a large increase
in interest expense of $20.5 million or 56.7%due to the early implementation in fiscal
2021 of GASB Statement No.89, Accounting for Interest Cost Incurred Before the End of
a Construction Period (“GASB Statement No. 89”) which discontinued the practice of
considering interest costs as one of the ancillary charges necessary to place assets into
their intended location and condition for use. Early implementation of GASB Statement
No. 89 resulted in 100 percent of the interest costs being expensed in fiscal year 2021
compared to approximately 63 percent being expensed in fiscal year 2020.
Capital grants and contributions increased $8.3 million or 130.0% with the majority of
the increase resulting from capital contributions as the value of capital projects
contributed to the District increased in fiscal 2021.
2020 Analysis
Net position increased $150.1 million or 5.7% over the prior year which was a $20.9
million or 16.2% increase over fiscal year 2019’s net position increase. The largest impact
to net position was the increase in sewer service charges revenue which increased due to
rate increases.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 11
Total revenue increased by $37.8 million or 8.3%. Sewer service charges increased $30.5
million or 7.6% and the provision for doubtful accounts increased correspondingly by $1.3
million or 29.0%. Property taxes increased $1.3 million or 3.9% due primarily to higher
property valuation assessments. Other operating revenue increased $7.7 million or
311.3% primarily due to a lawsuit settlement received on a sewer construction project.
Investment income decreased $0.4 million or 2.6% due to the decrease in unrealized gain,
offset by an increase in purchased interest and less interest revenue capitalized in fiscal
2020.
Total expenses increased by $5.9 million or 1.7% resulting primarily from the increase in
operating expenses. Operating expenses increased $6.0 million or 2.1% with the largest
increases in depreciation of $4.0 million or 4.8% and asset management of $3.4 million or
25.0%due to increased sewer inspection costs.Non-operating expenses decreased $0.1
million or 0.3% due to a large decrease in non-recurring projects and studies of $3.1
million or 20.3%, offset by a large increase in interest expense of $3.0 million or 9.2% due
to more projects being capitalized thereby reducing capitalized interest.
Capital grants and contributions decreased $11.0 million or 63.2% with the majority of
the decrease resulting from capital contributions as the value of capital projects
contributed to the District decreased significantly in fiscal 2020.
For the F isc al For the F isc al Inc rease For the F isc al Inc rease
Year End ed Year Ended (Decrease)Year Ended (Decrease)
June 3 0, 2 021 June 30, 2020 2021-2020 June 3 0, 2019 2020-2019
Cash flows from operating
a ctivities 210,674$ 216,970$ (6,2 96)$ 185,226$ 31,744$
Cash flows from non-ca pital
financi ng a ctivities 42,689 34,983 7,706 33,850 1,133
Cash flows from ca pital
a nd rela ted fina ncing
a ctivities (211,637)(305,361)93,724 (3 10,046)4,685
Cash flows from i nves ting
a ctivities (1 6,586)93,779 (110,365) 113,338 (19,559)
Net i ncre ase (decrease) in
ca sh a nd ca sh e quivalents 25,140 40,371 (15,231)22,368 18,003
Cash a nd ca sh eq uivalent s
a t begi nni ng of year 97,125 56,754 40,371 34,386 22,368
Cas h And Cash Equivalents
At End Of Y ear 122,265$ 97,125$ 25,140$ 56,754$ 40,371$
Conde nsed Statements of Cash F low s
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 12
2021 Analysis
The District ended the year with $122.3 million in cash and cash equivalents for an
increase of $25.1 million or 25.9% from the prior year.Cash flows from operating
activities decreased by $6.3 million or 2.9% as a result of decreased receipts from
customers and increased payments to employees for services and to suppliers for goods
and services.Cash flows from non-capital financing activities increased by $7.7 million
or 22.0%due to higher taxes receipts. Cash flows from capital and related financing
activities increased by $93.7 million or 30.7% due primarily to a $99.2 million increase in
bond proceeds and premiums received in fiscal year 2021 compared to fiscal year 2020, a
decrease of $16.2 million in principal, interest and fees paid on bonds due primarily to
the $26.0 million debt service reserves paid out to advance refund debt in fiscal 2020
compared to the $4.0 million paid out in fiscal 2021 to current refund debt, and increases
of $2.4 million in capital grant proceeds and $1.1 million in insurance proceeds; offset by
a $25.2 million increase in spending for capital assets. Cash flows from investing
activities decreased by $110.4 million or 117.7%. The decrease primarily stems from the
fact that the difference between investments maturing decreased $69.1 million while
investments purchased increased $40.5 million in fiscal 2021 compared to fiscal year
2020.
2020 Analysis
The District ended the year with $97.1 million in cash and cash equivalents for an
increase of $40.4 million or 71.1% from the prior year.Cash flows from operating
activities increased by $31.7 million or 17.1% as a result of increased receipts from
customers and decreased payments to suppliers for goods and services;offset by an
increase in payments to employees. Cash flows from non-capital financing activities
increased by $1.1 million or 3.3%. Cash flows from capital and related financing activities
increased by $4.7 million or 1.5% due primarily to a $74.8 million increase in bond
proceeds and premiums received in fiscal year 2020 compared to fiscal year 2019;offset
by a $25.2 million increase in principal, interest and fees paid on bonds and a $46.5
million increase in spending for capital assets. Cash flows from investing activities
decreased by $19.5 million or 17.3%. The decrease primarily stems from the fact that the
difference between investments maturing and investments purchased was less in fiscal
2020 compared to fiscal year 2019 as more investments matured than were purchased in
both years.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 13
Capital Assets
2021 Analysis
Total capital assets, net of accumulated depreciation, increased by $230.5 million or 6.0%
over the prior year.Construction in progress contained the majority of the increase of
$181.1 million or 17.9% consisting of $299.6 million in additions offset by $118.5 million
of assets placed into service.Collection and pumping plant assets increased with net
additions of $68.5 million or 3.3%, primarily for capitalization of assets including new
and improved sewers, dedicated assets, and infrastructure repairs. Land increased $1.2
million or 1.6% due to the acquisition of easements and other land and general plant and
equipment increased $1.1 million or 5.0%. These increases are offset by net treatment
and disposal plant and equipment decrease of $21.5 million or 3.4% due to no large
projects being capitalized in fiscal 2021 to offset the depreciation charge for the year. For
more detailed information, see Note 4, Capital Assets, in the accompanying notes to the
financial statements.
2020 Analysis
Total capital assets, net of accumulated depreciation, increased by $216.2 million or 6.0%
over the prior year.Collection and pumping plant assets contained the majority of the
increase with net additions of $177.9 million or 9.3%, primarily for capitalization of assets
including new and improved sewers, dedicated assets and infrastructure repairs.
Construction in progress increased $56.6 million or 5.9% consisting of $289.3 million in
additions offset by $232.7 million of assets placed into service.Land increased $4.1
million or 5.5% due to the acquisition of easements and other land. These increases are
Inc rease Inc re ase
June 3 0,June 30,(Decrease)June 3 0,(Decrease)
2021 2020 2021-2020 2019 2020-2019
Land 79,569$ 78,334$ 1,235$ 74,274$ 4,060$
Construct ion i n p ro gres s 1,194,033 1,012,926 181,107 956,321 56,605
Treatment and disposal plant
and equi pment 617,238 638,730 (21,492) 660,732 (22,002)
Collection a nd p um ping p lant 2,163,327 2,094,866 68,461 1,916,993 177,873
Gene ra l plant and equipment 24,175 23,033 1,142 23,396 (363)
T otal 4,078,342$3,847,889$230,453$ 3,631,716$216,173$
Conde nsed Statem ents of Capit al As sets
Net of Depreciation
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 14
offset by net treatment and disposal plant and equipment decrease of $22.0 million or
3.3% due to no large projects being capitalized in fiscal 2020 to offset the depreciation
charge for the year and general plant and equipment decrease of $0.4 million or 1.6%.
For more detailed information, see Note 4, Capital Assets, in the accompanying notes to
the financial statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 15
Long-Term Debt
Inc rease Inc rease
June 3 0,June 3 0,(Decrease)June 3 0,(Decrease)
2021 2020 2021-2020 2019 2020-2019
Senior Revenue Bonds:
S eries 2010B 85,000$ 85,000$ —$ 85,000$ —$
S eries 2011B —13,725 (13,725) 15,945 (2,220)
S eries 2012A 40,320 45,620 (5,300) 154,040 (108,420)
S eries 2012B 37,800 41,525 (3,725) 128,840 (87,315)
S eries 2013B 38,990 42,380 (3,390) 113,615 (71,235)
S eries 2015B 166,030 168,950 (2,920) 190,135 (21,185)
S eries 2016C 138,740 141,695 (2,955) 144,535 (2,840)
S eries 2017A 305,580 309,240 (3,660) 312,760 (3,520)
S eries 2019B 51,295 52,130 (835)—52,130
S eries 2019C (Taxa ble)274,745 276,260 (1,515) —276,260
S eries 2020B 118,055 —118,055 ——
Water Infrastructure F inanc e &
Innovation Ac t (WIFIA) Senior Bonds:
S eries 2018A 262 262 —262 —
Senior Refunding R evenue Bonds,
Direct Placement:
S eries 2021C 5,620 —5,620 ——
Subordinate R evenue Bonds
(State Revolving Funds Program):
S eries 2004B 46,625 55,730 (9,105) 64,590 (8,860)
S eries 2005A 2,400 2,765 (365)3,120 (355)
S eries 2006A 16,075 18,550 (2,475) 20,965 (2,415)
S eries 2006B 5,890 6,650 (760)7,400 (750)
S eries 2008AB 17,790 19,795 (2,005) 21,765 (1,970)
Missouri Department of
Natural Resources:
Energy Loan Program ———16 (16)
S eries 2009A 11,892 13,068 (1,176) 14,218 (1,150)
S eries 2010A 4,683 5,080 (397)5,468 (388)
S eries 2010C 21,269 23,111 (1,842) 24,906 (1,795)
S eries 2011A 28,611 30,449 (1,838) 32,241 (1,792)
S eries 2013A 38,679 41,044 (2,365) 43,349 (2,305)
S eries 2015A 58,973 62,478 (3,505) 65,902 (3,424)
S eries 2016A 17,001 17,158 (157)13,129 4,029
S eries 2016B 65,850 61,285 4,565 45,583 15,702
S eries 2018B 24,303 18,228 6,075 2,880 15,348
S eries 2019A 22,012 6,292 15,720 —6,292
S eries 2020A 9,983 —9,983 ——
S eries 2021A 5,333 —5,333 ——
S eries 2021B 7,260 —7,260 ——
T otal 1,667,066$ 1,558,470$ 108,596$ 1,510,664$ 47,806$
Condensed Statem ents of L ong-Term Debt
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 16
2021 Analysis
The District ended fiscal year 2021 with $1.7 billion in long-term debt outstanding. The
District had one senior revenue bond addition this year,Series 2020B, totaling $120.0
million and one senior refunding revenue bond direct placement addition,Series 2021C,
totaling $5.6 million which was used to refund $11.4 million of the Series 2011B senior
revenue bond. These amounts represent new borrowings and do not reflect the principal
payment made in fiscal 2021 on Series 2020B. In addition, the District added three new
Missouri Department of Natural Resources bonds,Series 2020A, 2021A and 2021B,
totaling $10.0 million, $5.3 million and $7.3 million, respectively. The District also
received $0.7 million, $7.9 million,$6.1 million,and $15.7 million in loan proceeds from
the Series 2016A, Series 2016B,Series 2018B, and Series 2019A Missouri Department of
Natural Resources bonds,respectively.These amounts represent new borrowings and do
not reflect the principal payments made in fiscal 2021 on Series 2016A and Series 2016B.
Total principal payments of $58.6 million, excluding the refunding referenced above,
reduced outstanding debt in fiscal year 2021.For more detailed information, see Note 6,
Long-Term Liabilities, in the accompanying notes to the financial statements.
2020 Analysis
The District ended fiscal year 2020 with $1.6 billion in long-term debt outstanding. The
District had one tax-exempt senior revenue bond addition this year,Series 2019B,
totaling $52.1 million and one taxable senior revenue bond addition,Series 2019C,
totaling $276.3 million which was used to partially advance refund $273.4 million of the
Series 2012A, Series 2012B, Series 2013B and Series 2015B senior revenue bonds.In
addition, the District added one new Missouri Department of Natural Resources bond,
Series 2019A,totaling $6.3 million and the District received $4.9 million, $18.9 million,
and $15.3 million in loan proceeds from the Series 2016A, Series 2016B, and Series 2018B
Missouri Department of Natural Resources bonds,respectively.These amounts
represent new borrowings and do not reflect the principal payments made in fiscal 2020
on Series 2016A and Series 2016B. Total principal payments of $52.6 million, excluding
the refunding referenced above, reduced outstanding debt in fiscal year 2020.For more
detailed information, see Note 6, Long-Term Liabilities, in the accompanying notes to the
financial statements.
Decisions Impacting the Future
Integral to helping MSD’s rate payers understand the District’s Consent Decree (“CD”)
with the U.S. Environmental Protection Agency, the State of Missouri,and the Missouri
Coalition for the Environment,which settled a lawsuit for alleged violations of the Clean
Water Act,was the initiation of MSD Project Clear.See Note 12, Commitments and
Contingencies, for additional information regarding this litigation.The goal of MSD
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 17
Project Clear is to help MSD’s rate payers have a clear understanding of MSD’s goals and
objectives.MSD Project Clear consists of three main components:
Getting the Rain Out which is focused on reducing excess stormwater from
entering the sewer system infrastructure to help reduce basement back-ups and
overflows;
Performing Repair and Maintenance to the existing infrastructure to ensure it
operates as well as possible for as long as possible;and
Building System Improvements where needed to increase the capacity of
the system.
MSD Project Clear will greatly affect the daily lives of many of our rate payers and is
needed to help the rate payer understand the individual and regional, as well as the
immediate and long-term, benefits of the program.
Since February 2004, the voters in the District’s service area have authorized the District
to issue a total of $3.1 billion in wastewater revenue bonds. As of June 30, 2021, the
District has issued $2.3 billion of the total authorization. The District’s long-term
wastewater capital improvement program will continue to be funded through a
combination of additional bonds and wastewater rate increases.
Requests for Information
This financial report is designed to provide a general overview of the District’s finances
for all those with an interest in the District’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should
be addressed or e-mailed to:
Marion M. Gee, Director of Finance
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
mgee@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 18
STATEMENTS OF NET POSITION
Continued on Next Page
Ju ne 30,
As sets 2021 2020
Cu rrent As sets
Unrestricted Cu rrent As sets
Cash and cash equivale nts 91,337,843$ 67,802,872$
Investments 210,940,744 264,322,528
Se wer se rvice charges receivable, less allo wance of $70,666,088 in 2021 and
$66,061,154 in 2020 66,387,300 67,498,533
Unbille d se wer service charges rece iv able 34,970,247 33,342,430
Prope rty taxe s re ceivable , le ss allo wance of $7,430 in 2021 and $8,604 in 2020 363,496 421,059
Accrued income on investm ents 1,434,887 1,891,034
Other re ceivables, less allo wance of $60,373 in 2021 an d $58,209 in 2020 2,340,234 5,168,412
Supplie s inventory 8,475,419 8,013,597
To tal Unrestrict ed Cu rrent As sets 416,250,170 448,460,465
Res tricted Cu rrent As sets
Cash and cash equivale nts 4,629,689 3,580,818
Investments 12,587,475 17,921,368
Other re ceivables 43,590 48,273
To tal Restricted Cu rrent As sets 17,260,754 21,550,459
Total Cu rrent As sets 433,510,924 470,010,924
Non-Current As sets
Res tricted As sets
Cash and cash equivale nts 26,297,303 25,741,021
Investments 125,637,074 90,301,459
Long-term investments 32,199,117 30,682,863
Prope rty taxe s re ceivable , le ss allo wance of $36,447 in 2021 and $29,497 in 2020 1,750,616 1,389,975
Accrued income on investm ents 169,177 375,676
To tal Restricted Non-Cu rrent As sets 186,053,287 148,490,994
Other As sets
Note s re ce iv able 9,694,702 10,410,729
Long-term investments 198,404,102 158,130,241
To tal Other Assets 208,098,804 168,540,970
Capital Assets
Depreciable:
Treatment and dispo sal plant an d e quipm ent 1,303,648,712 1,289,884,442
Co lle ction and pu mping plan t 3,093,068,764 2,974,542,039
General plant an d equipment 103,516,644 100,949,737
4,500,234,120 4,365,376,218
Le ss: Accumulate d de pr eciatio n 1,695,494,536 1,608,746,607
Net de preciable assets 2,804,739,584 2,756,629,611
Non-depreciable:
Land 79,569,310 78,333,629
Co nstruction in pro gress 1,194,033,441 1,012,925,929
Net Capital As sets 4,078,342,335 3,847,889,169
Total Non-Current As sets 4,472,494,426 4,164,921,133
Tot al As sets 4,906,005,350 4,634,932,057
Defer red Ou tflows of Res ources
Bonds and note s payable-De ferred loss o n refundin g 5,469,323 5,888,796
Pensio n-related o utflows 10,476,420 15,673,652
OPEB-relate d o utflows 3,536,916 2,842,869
Tot al Defer red Ou tflows of Resources 19,482,659 24,405,317
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 19
STATEMENTS OF NET POSITION (Continued)
Ju ne 30,
Liabilities 2021 2020
Cu rrent Liabilities
Current Liabilities -Payable From Un restricted As sets
Co ntracts and acco unts payable 40,797,422$ 36,317,712$
Deposits an d ac crued expenses 42,276,571 42,172,527
Re tain age payable 20,326,492 16,736,184
Current portio n of bo nds and notes payable 61,157,300 56,629,100
Total Cu rrent Liabilities-Payable Fr om Un restrict ed As sets 164,557,785 151,855,523
Current Liabilities -Payable From Restrict ed As sets
Co ntracts and acco unts payable 702,175 912,704
Re tain age payable 561,310 843,548
Total Cu rrent Liabilities-Payable Fr om Restricted As sets 1,263,485 1,756,252
Total Cu rrent Liabilities 165,821,270 153,611,775
No n-Current Liabilities
Deposits an d ac crued expenses 9,202,567 7,559,792
Ne t pe nsio n liability 29,495,178 57,792,913
To tal OPEB liability 24,920,628 23,164,618
Bo nds and notes payable 1,768,769,051 1,633,705,811
Total Non-Current Liabilities 1,832,387,424 1,722,223,134
Total Liabilities 1,998,208,694 1,875,834,909
Deferred Inflows of Resources
Bo nds and notes payable-Deferred gain on refundin g 2,793,162 1,393,209
Pe nsion-relate d in flows 22,671,398 7,149,698
O PEB-rela te d in flows 3,888,085 4,330,667
Total Defer red I nflows of Res ources 29,352,645 12,873,574
Net Po sition
Ne t in vestment in capital asse ts 2,299,307,589 2,184,736,432
Re stricte d for:
Debt se rvice 29,706,793 33,856,568
Subdistrict constr uctio n and improve ment 68,212,821 63,177,454
Unrestricted 500,699,467 488,858,437
Total Net Position 2,897,926,670$ 2,770,628,891$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 20
STATEMENTS OF REVENUES, EXPENSES,AND
CHANGES IN NET POSITION
2021 2020
Operating Revenues
Se wer se rvice charge s 425,247,783$ 430,398,092$
Provision for doubtful se wer service charge acco unts (5,347,419)(5,611,549)
Licenses, pe rmits and other fe es 3,753,797 3,012,368
O th er 3,497,401 10,193,128
To tal Oper ating Rev en ues 427,151,562 437,992,039
Operating Ex pen ses
Pumpin g and tre atm ent 64,475,064 62,030,454
Colle ctio n system maintenance 48,112,996 47,652,258
Engine ering 11,500,796 11,628,086
G eneral and adm in istrative 55,011,533 65,946,684
Wate r backup claims 3,984,849 4,653,281
Depre ciatio n 91,352,269 87,633,312
Asse t m an age ment 16,023,983 17,195,321
To tal Oper ating Ex pen ses 290,461,490 296,739,396
Operating Inco me 136,690,072 141,252,643
No n-Operating Revenues
Property taxes levied by the Dis tric t 43,624,302 35,439,441
Investment income 1,392,278 16,259,182
Rent and othe r income 323,662 301,631
To tal Non-Oper ating Revenues 45,340,242 52,000,254
No n-Operating Ex pen ses
Net lo ss on dispo sal and sale of capital asse ts 990,108 961,476
Non-recurring projects an d stu die s 11,827,723 12,458,231
Interest expense 56,615,868 36,119,362
To tal Non-Oper ating Ex pen ses 69,433,699 49,539,069
In come Befo re Capit al Gr ants An d Co ntributions 112,596,615 143,713,828
Capital Grants An d Contribu tions
Capital asse ts co ntributed 12,943,095 6,491,961
G rant re venue 1,758,069 (101,054)
To tal Ca pi tal Gr ants An d Co ntribu tions 14,701,164 6,390,907
Change In Net Po sition 127,297,779 150,104,735
Net Po sition - Beginning Of Year 2,770,628,891 2,620,524,156
Net Po sition - En d Of Year 2,897,926,670$ 2,770,628,891$
For Th e Years
En ded Ju ne 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 21
STATEMENTS OF CASH FLOWS
Continued on Next Page
2021 2020
Cash F low s F rom O perating Ac tivities
Received from cus tomers 425,929,012$ 429,203,588$
Paid to employees for s ervices (105,930,520) (104,218,386)
Paid to suppliers for go ods a nd s ervi ce s (109,324,477) (108,014,954)
Net Cas h Provide d By O perating Ac tivities 210,674,015 216,970,248
Cash F low s Provided By Non-Capital F inanc ing Activities
Taxes levied and collected 42,688,546 34,983,525
Cash F low s From Capital And Related Financing Ac tivities
Proceeds from ca pital gra nt s 3,537,577 1,099,045
Proceeds from i ssuance of debt 172,012,156 97,928,346
Premium on s ale of bonds 37,194,201 12,059,976
Principa l paid on d ebt (62,599,880) (5 2,603,763)
Interest and fees paid on debt (62,785,703) (8 8,951,050)
Payments for ca pital assets (303,040,026) (277,790,939)
Proceeds from s ale of capital assets 158,652 105,228
Proceeds received from other organi zation for their cont ribution t o
construct ion of treatment plant 1,154,696 1,154,696
Proceeds from i ns urance on des troyed capital assets 1,088,835 —
Build America B ond t ax credit 1,642,857 1,636,759
Net Cas h (Used In) Capital And Related
Financ ing Ac tivitie s (211,636,635) (305,361,702)
Cash F low s F rom Investing Ac tivities
Purcha se of investment s (633,675,492) (593,156,734)
Proceeds from s ale and maturi ty of investment s 606,554,500 675,698,385
Investment i ncome 10,297,068 10,995,758
Proceeds from rent s 238,122 241,167
Net Cas h Provide d By (Used In) Investing Activities (16,585,802) 93,778,576
Ne t Inc re ase In Cash And Cash Eq uivalents 25,140,124 40,370,647
Cash And Cas h Eq uivale nts At Beginning Of Y ear 97,124,711 56,754,064
Cash And Cash Equivalents At End Of Year 122,264,835$ 97,124,711$
Statem ents of N et Position Classific at ion
C urrent A ssets - Unres tricted Cash and cash equivalents 91,337,843$ 67,802,872$
C urrent A ssets - Restricted Cash a nd cash equivalent s 4,629,689 3,580,818
N on-Current A ssets - Restricted Cash and ca sh equiva lent s 26,297,303 25,741,021
Statements of Net Position T otal Cash And Cash Equivalents 122,264,835$ 97,124,711$
Non-Cash Capital And Investing Activities
Net proceeds f rom debt issuance placed into escrow to refund b onds 7,371,752$ 275,196,961$
Principa l amount reduced and placed in escrow a nd related
deferred loss/ga in and premium (7,371,752) (300,519,359)
Proceeds from d ebt issuance us ed to pay underwri ters directly 932,589 374,256
Capital asset additions included in account s payable 23,958,166 20,074,250
Capital assets co nt ributed by ot her governments and developers 12,943,095 6,491,961
Fair va lue investment adjus tment (gain) los s 7,406,329 (7,431,145)
Grant revenue (expense)288,446 (1 78,002)
For The Y ears
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 22
STATEMENTS OF CASH FLOWS (Continued)
2021 2020
Reconciliation Of Operating Income To Net Cash Flows
Provided By Operating Activities
Operating Income 136,690,072$ 141,252,643$
Adjustments to reconcile oper ating incom e to net cash
provided by operating activities:
Depr ec iation 91,352,269 87,633,312
Non-recurring projects and studies (11,827,723)(12,458,231)
Tax commission fees 637,362 507,762
Change in oper ating assets and liabilities:
(Increase) in billed and unbilled sewer service
charges receivable (516,584)(3,035,050)
Dec rease in other receivables 75,499 97,828
Dec rease (increase) in supplies inventory (461,822)292,918
Dec rease in pension-related outflows 5,197,232 18,564,618
(Increase) in OPEB-related outflows (694,047)(1,596,542)
(Decrease) increase in contracts and accounts payable 693,426 (1,099,779)
(Decrease) increase in deposits and accrued expen ses 990,938 (1,838,193)
(Decrease) in net pen sion liability (28,297,735)(16,603,824)
(Decrease) increase in total OPEB liability 1,756,010 (999,777)
Increase in pen sion-related inflows 15,521,700 2,808,582
(Decrease) increase in OPEB-r elated inflows (442,582)3,443,981
Net Cash Provided By Operating Activities 210,674,015$ 216,970,248$
For The Years
En ded June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 23
STATEMENTS OF FIDUCIARY NET POSITION
EMPLOYEES’PENSION PLAN
2020 2019
Assets
In ves tment s at Fair V alue:
Collective Inve stment Funds 171,767,753$ 136,062,084$
Mutual Funds 60,179,174 70,580,513
Real Es tate Investment s 30,265,219 32,566,168
Corporate Ob ligations 27,630,867 21,981,050
Dom estic C ommon S tocks 18,552,256 14,868,772
US Treasury a nd A gency Ob ligations 13,994,724 16,428,797
Money M arket Funds 3,237,837 3,110,257
Muni ci pal Ob ligations 1,292,527 554,136
Total In ve stment s 326,920,357 296,151,777
Receiva bles
Interest and Divi dends Receiva ble 236,729 333,726
Total Receivables 236,729 333,726
Total Assets 327,157,086 296,485,503
Liab ilitie s
Accrued Exp enses 244,402 282,856
Total Liabilities 244,402 282,856
Fuduciary Net Position Restricted for Pension Benef its 326,912,684$ 296,202,647$
December 3 1,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.Page 24
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
EMPLOYEES’PENSION PLAN
2020 2019
Additions to F iduciary Net Position Attrib uted to:
In ves tment Incom e:
Net Appreci ation i n Fair V alue of Inves tment s 32,083,437$ 38,919,875$
Interest and Divi dends 5,514,283 3,542,825
Total In ve stment Income 37,597,720 42,462,700
Les s - Investment M anagers ' a nd Advisors ' F ees 922,422 831,216
Net Inves tment Incom e 36,675,298 41,631,484
Em ployer C ont ri butions 13,416,065 12,740,406
Total Additions 50,091,363 54,371,890
Deductions from F iduc iary Net Position Attrib uted to:
Benefits Paid to Retirees a nd B eneficiaries 19,273,097 18,626,890
Administrative Exp ens es 108,229 102,929
Total Ded uct ions 19,381,326 18,729,819
Net Inc re ase 30,710,037 35,642,071
Fiduc iary N et Position Restricted for
Pension Bene fits, January 1 296,202,647 260,560,576
Fiduc iary N et Position Restricted for
Pension Bene fits, Dec em ber 31 326,912,684$ 296,202,647$
For the Y ears
Ended December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 25
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 AND 2020
1.Summary of Significant Accounting Policies
Organization
The Metropolitan St. Louis Sewer District (“District”) was authorized by the
voters, established and chartered under Article VI, Section 30 of the Constitution
of Missouri as a municipal corporation and a political subdivision of the State of
Missouri. Upon creation in 1954, the District assumed responsibilities to provide
for the construction, operation, and maintenance of the sewer facilities within its
defined boundaries. The District’s service area now comprises all of the City of St.
Louis and most of St. Louis County. Subdistricts within the District’s total service
area represent separate geographic areas within which specific taxes can be levied
to operate and maintain wastewater or stormwater facilities within the area or
construct improvements within the subdistrict. The District also maintains all of
the publicly owned stormwater sewers within its original boundaries and is
continuing to accept maintenance of the stormwater sewers in the remainder of its
service area.
Pursuant to provisions of its Charter and subject to limitations imposed by the
Constitution of Missouri, all powers of the District are vested in a six-member
Board of Trustees (“Board”), three of whom are appointed by the Mayor of the City
of St. Louis and three of whom are appointed by the County Executive of St.Louis
County. Not more than two Trustees appointed from said City or County, as the
case may be, shall be a member of the same political party.
Reporting Entity
The District defines its financial reporting entity to include all component units
for which the District’s governing body is financially accountable. To be considered
financially accountable, the component unit must be fiscally dependent on the
District and the District must either 1) be able to impose its will on the component
unit or 2) the relationship must have the potential for creating a financial benefit
or imposing a financial burden on the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 26
The District sponsors a single employer defined benefit pension plan and trust for
which the District contributes the actuarially determined contribution each year.
Pursuant to the adoption in fiscal year 2021 of Statement No. 84 of the
Governmental Accounting Standards Board, Fiduciary Activities, it was
determined that the defined benefit pension plan and trust qualifies as a fiduciary
component unit that meets the criteria of a fiduciary activity and the Statements
of Fiduciary Net Position and the Statements of Changes in Fiduciary Net Position
for The Metropolitan St. Louis Sewer District Employees’ Pension Plan are
presented following the District’s basic financial statements. The District issues a
publicly available report for the defined benefit pension plan and trust with
audited financial statements that is available upon request and is also available
on the District’s msdprojectclear.org website. While included in the separately
issued report, the Cash and Investments and the Fair Value Measurement and
Application note disclosures for the fiduciary activity are presented herein as
Notes 16 and 17.
Based on the foregoing, the District’s financial statements include all funds that
are established under the authority of the District’s charter. There are no agencies,
boards, commissions, or authorities that are controlled by or dependent on the
District.
Measurement Focus, Basis of Accounting and Financial Statement
Presentation
The Governmental Accounting Standards Board (“GASB”) is the accepted
standard-setting body for establishing accounting and financial reporting
standards for U.S. state and local governments that follow generally accepted
accounting principles (“GAAP”). As a political subdivision of the State of Missouri,
the District follows GASB Pronouncements.
Throughout the year, the District maintains its detailed accounting records on a
modified accrual basis of accounting. In order to account for the transactions
related to certain subdistricts and restricted resources, separate fund accounting
records are maintained. For financial reporting purposes, the District reports its
operations as a single enterprise fund and the financial statements are prepared
in conformity with accounting principles generally accepted in the United States
of America as applied to government units. Accordingly, the accounting records are
converted to the accrual basis of accounting and all interfund transactions are
eliminated. The District’s fiduciary financial statements are also presented in
conformity with accounting principles generally accepted in the United States of
America on an accrual basis of accounting. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recognized when the
related liability is incurred. The District’s measurement focus for both the basic
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 27
financial statements and the financial statements of the District’s fiduciary
activity is on the flow of economic resources.
Revenues and expenses are divided into operating and non-operating items.
Operating revenues generally result from providing services in connection with the
District’s principal ongoing operations. The principal operating revenues of the
District are user fees, licenses, and permits for wastewater treatment services.
Operating expenses include the costs associated with the conveyance and
treatment of wastewater and stormwater, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting these
definitions are reported as non-operating revenues and expenses. Non-recurring
projects and studies (shown as non-operating expenses) consist of expenses related
to unusual charges or losses that are unlikely to occur again in the formal course
of business such as work related to federally declared disasters, projects originally
intended to be capitalized that changed scope when a decision was made to no
longer build an asset, and any non-reimbursed work performed on assets not
owned or maintained by the District but is necessary to protect District owned
assets or to mitigate a threat to the health and safety of the general public.
The District follows GASB Statement No. 33, Accounting and Financial Reporting
for Nonexchange Transactions, which establishes accounting and financial
reporting standards for nonexchange transactions involving financial or capital
resources. GASB Statement No. 33 groups nonexchange transactions into the
following four classes, based upon their principal characteristics: derived tax
revenues, imposed nonexchange revenues, government-mandated nonexchange
transactions, and voluntary nonexchange transactions.
The District recognizes assets from imposed nonexchange revenue transactions in the
period when an enforceable legal claim to the assets arises or when the resources are
received, whichever occurs first. Revenues are recognized in the period when the
resources are required to be used for the first period that use is permitted. The District
recognizes revenues from property taxes, net of estimated refunds and estimated
uncollectible amounts, in the period for which the taxes are levied. Imposed
nonexchange revenues also include licenses, permits, and other fees.
Intergovernmental revenues, representing grants and assistance received from
other governmental units, are generally recognized as revenues in the period when
all eligibility requirements, as defined by GASB Statement No. 33, have been met.
Any resources received where all requirements are met with the exception of the
time requirement are recorded as deferred inflows. All other resources received
before any other eligibility requirements are met are reported as unearned
revenues.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 28
Cash and Cash Equivalents
The District considers highly liquid investments that have original maturity of less
than 91 days to the District to be Cash Equivalents.
Investments
The District accounts for its investments at fair value. The District categorizes its
fair value measurements within the fair value hierarchy established by generally
accepted accounting principles pursuant to GASB Statement No. 72, Fair Value
Measurement and Application. The hierarchy is based on the valuation inputs used
to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. Changes in unrealized gain
(loss) on the carrying value of investments are reported as a component of
investment income in the Statements of Revenues, Expenses and Changes in Net
Position.
Restricted Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments that are externally restricted are
classified as restricted assets. These assets are used to make debt service
payments, maintain sinking or reserve funds, purchase or construct capital or
other non-current assets or for other restricted purposes.
Accounts Receivable
Accounts receivable is composed primarily of charges to customers for wastewater
services. Accounts are considered past due 30 days from the invoice date.
Receivables are reported at their gross values net of an allowance for uncollectible
amounts. This allowance for uncollectible amounts is based on historical collection
experience. Throughout the fiscal year unbilled sewer service charge revenues are
accrued by the District based on estimated billings for services provided and then
actual unbilled sewer service charge revenue is accrued at the end of the fiscal year
as all ratepayers are billed in the following month for the previous calendar
month’s services with the billings spread over twenty-three different billing cycles.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 29
Capital Assets
Acquired capital assets are recorded at historical cost on the acquisition date. In
accordance with GASB Statement No. 72, donated capital assets are recorded at
their estimated acquisition value at the acquisition date. Depreciation is calculated
on a straight-line basis over the following estimated useful lives:
When developing user charge rates, the District includes funding for replacement
cost of assets, which may differ from depreciation expense recorded for financial
reporting purposes.
Normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Betterments are capitalized and
depreciated over the remaining useful lives of the related assets, as applicable. The
District defines capital assets as assets with a minimum initial, individual cost
between $5,000 and $15,000, depending on the class of assets as detailed above,
and an estimated useful life of at least three years. At the time of retirement or
disposal of capital assets, the related cost and accumulated depreciation are
removed from the accounts and the resulting net gain or loss on disposal and sale
of capital assets is reflected in non-operating expenses.
A portion of the prior fiscal years’ interest on debt was capitalized as part of the
costs of capital assets during construction based on the related weighted average
net borrowing costs incurred. In fiscal year 2021 the District early implemented
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a
Construction Period, resulting in all interest cost incurred in fiscal year 2021 being
charged to interest expense in the period in which it was incurred. The amount of
interest cost incurred in 2021 totaled $53,151,605 of which $44,846,148 was
incurred on tax-exempt borrowings and $8,305,457 was incurred on taxable
borrowings. This $53,151,605 excludes debt issuance cost, agent fees and
amortization of deferred gains and losses of $3,464,263. In fiscal year 2020, the
District’s total interest cost incurred on borrowings during the fiscal year was
$50,688,152 and of the fiscal year 2020 total, $45,917,407 was incurred on tax-
exempt borrowings and $4,770,745 was incurred on taxable borrowings. Of this
total interest cost, $19,252,310 was capitalized and $31,435,842 was expensed in
Cl ass of Assets
Useful Life
in years
Buildings (rec or ded within other categories)20 to 50
Collection System 20 to 100
Pumping System 5 to 50
Treatmen t & Dispos al Plant 5 to 50
Vehicles 7 to 10
Gener al Suppor t Equipm ent & Furniture 3 to 10
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 30
fiscal 2020. This $31,435,842 excludes debt issuance cost, agent fees and
amortization of deferred gains and losses of $4,683,520. T o offset the interest costs
capitalized in fiscal year 2020, interest revenue on unspent bond proceeds of
$1,636,310 was netted with the interest expense resulting in a net capitalized
interest of $17,616,000 in fiscal year 2020.
Costs incurred for capital construction and acquisition are carried in construction
in progress until completion of the related projects. The major components of
construction in progress are the costs incurred to construct new tunnels, storage
facilities and sewer lines, rehabilitate and separate existing sewer lines, and to
make improvements to pump stations and treatment plants. Costs related to
projects not pursued are expensed when terminated.
Supplies Inventory
Supplies inventory consists of parts and supplies to be used to operate and
maintain treatment facilities and various treatment-related equipment at the
District. This inventory figure is netted against those materials and supplies
deemed to be potentially obsolete. All inventory is stated at weighted average cost
and expenses are recognized when the inventory is consumed.
Net Position
One component of the District’s net position is the net investment in capital assets
which consists of capital assets, net of accumulated depreciation,reduced by the
net outstanding debt and construction-related liabilities, including premiums and
discounts on such debt,which is attributable to the acquisition, construction, or
improvement of those assets. The outstanding debt is net of the cash and
investments from the debt that has not yet been expended. Deferred gains and
losses on refundings are also included in the net investment in capital assets net
position.
The restricted component of net position consists of assets and liabilities regulated
by external constraints imposed by creditors, grantors, contributors, laws, or
regulations of other governments or constraints imposed by law through
constitutional provisions or enabling legislation. Property taxes levied by the
various subdistricts and other revenues received for construction in those sub-
districts have also been restricted for that use. Sewer extension and connection
fees, grants, and other revenues received for construction within certain sub-
districts have been restricted for that use. In addition, a portion of wastewater
sewer charges have been restricted for the payment of principal and interest,
including accrued interest,on outstanding debt of the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 31
The unrestricted net position component of net position consists of net position that
does not meet the definition of restricted or net investment in capital assets. The
District first applies restricted resources when an expense is incurred for purposes
for which both restricted and unrestricted net position is available.
Deferred Outflows of Resources and Deferred Inflows of Resources
In addition to assets, financial statements may report a separate section for
deferred outflows of resources. Deferred outflows of resources consist of the
consumption of net position that is applicable to a future reporting period and so
will not be recognized as an outflow of resources until then. Deferred outflows of
resources related to refunding long-term debt is reported in the Statements of Net
Position. A deferred bond refunding amount results from the difference in the
carrying value of refunded debt and its reacquisition price which is amortized over
the shorter of the life of the refunded or refunding debt. The pension related
deferred outflows of resources represent contributions made to the plan between
the measurement date of the pension liability and the beginning of the next fiscal
year as well as certain actuarial differences and changes that are amortized over
future periods. The other postemployment benefit (“OPEB”)related deferred
outflows of resources represent benefit payments made between the measurement
date of the total OPEB liability and the beginning of the fiscal year following the
measurement date and certain actuarial differences and changes that are
amortized over future periods.
In addition to liabilities, financial statements may report a separate section for
deferred inflows of resources. Deferred inflows of resources consist of the
acquisition of net position that is applicable to a future reporting period and so will
not be recognized as an inflow of resources until then. Deferred inflows of resources
related to refunding long-term debt is also reported in the Statements of Net
Position due to the recognition of a deferred gain resulting from the difference in
the carrying value of refunded debt and its reacquisition price and this gain is
amortized over the shorter of the life of the refunded or refunding debt.The District
also has deferred inflows of resources related to certain changes in pension and
OPEB obligations that are amortized over future periods.
Capital Contributions
Capital contributions to the District represent government grants and other aid
used to fund capital projects and are reported at their estimated acquisition value.
In accordance with GASB Statement No. 33, capital contributions are recognized
as revenue when the expenditure is made and the amount becomes subject to claim
for reimbursement.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 32
Bonds, Bond Premiums, Discounts and Issuance Costs
Bonds and notes payable are recorded at the principal amount outstanding and
are reported net of any applicable bond premium or discount. In the District’s
financial statements, bond premiums and discounts are amortized over the life of
the bonds using the effective interest method. Bond issuance costs are expensed
when incurred pursuant to GASB Statement No. 65, Items Previously Reported as
Assets and Liabilities.
Bonds which have been advance refunded and in substance defeased are not
included in long-term debt and the related assets deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the
refunded debt are not included in investments.
Compensated Absences
Vacation
Under the terms of the District’s personnel policies, employees are allowed to carry
a maximum of 30 to 45 days of vacation (depending on length of service) from one
calendar year to the next. Since vacation accrued at year-end is expected to be used
by the employee during the following fiscal year, the accrual is reported as a
component of current deposits and accrued expenses payable.
Sick Leave
Employees earn sick pay benefits ranging from 10 days per year to 12 days per
year (depending on length of service). Unused sick leave can be carried over at
year-end without limitation. An employee retiring from the District with five or
more years of service will be compensated for any unused accrued sick leave at the
rate of 1.25% for each year of District service multiplied by the unused accrued
sick leave remaining at the employee’s current rate of pay up to a maximum of
$50,000. The District has recorded a liability which has been actuarially
determined to be equal to the accumulated expense charge that will amortize the
employees’ benefits over their period of District service. The liability, included in
current deposits and accrued expenses payable, includes vested accumulated
rights to receive sick leave benefits estimated to be paid within one year. The
portion of sick leave expected to be paid after one year is recorded as a component
of non-current deposits and accrued expenses payable.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 33
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, the
fiduciary net position of The Metropolitan St.Louis Sewer District Employees’
Pension Plan (“Pension Plan”) and additions to/deductions from the Pension Plan’s
fiduciary net position have been determined on the same basis as they are reported
by the Pension Plan, which has a December 31 reporting period. For this purpose,
benefit payments are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
Income Tax Status
The District is exempt from federal income tax under the Internal Revenue Code
as a political subdivision of the State of Missouri.
Adoption of New Accounting Standards
During fiscal year 2021 the District implemented GASB Statement No. 84,
Fiduciary Activities (“GASB Statement No. 84”), originally effective for reporting
periods beginning after December 15, 2018. GASB Statement No. 95,
Postponement of the Effective Dates of Certain Authoritative Guidance (“GASB
Statement No. 95”), postponed the effective date to reporting periods beginning
after December 15, 2019. GASB Statement No. 84 describes four fiduciary funds
that should be reported, if applicable: (1) pension (and other employee benefit)
trust funds;(2) investment trust funds;(3) private-purpose trust funds;and (4)
custodial funds. The criteria for identifying fiduciary activities are established and
the focus for the criteria is on (1) whether a government is controlling the assets of
the activity and (2) the beneficiaries with whom a fiduciary relationship exists.
The objective of this Statement is to improve guidance regarding the identification
of fiduciary activities for accounting and financial reporting purposes and how
those activities should be reported. After adoption of GASB Statement No. 84, the
District began reporting the fiduciary activities of The Metropolitan St. Louis
Sewer District Employees’ Pension Plan in the financial statements.
The District early implemented GASB Statement No. 89, Accounting for Interest
Cost Incurred Before the End of a Construction Period (“GASB Statement No. 89”),
originally effective for reporting periods beginning after December 15, 2019,and
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 34
subsequently postponed to reporting periods beginning after December 15, 2020,
by GASB Statement No. 95. The requirements of this Statement are applied
prospectively and discontinue the practice of considering interest costs as one of
the ancillary charges necessary to place the asset into its intended location and
condition for use. This authoritative guidance states that decisions regarding how
to finance the acquisition of capital assets do not impact the service capacity of
those assets and the requirements of this Statement will improve financial
reporting by providing more relevant information about capital assets and the cost
of borrowing for a reporting period and simplify accounting for interest cost
incurred before the end of a construction period. In financial statements prepared
using the economic resources measurement focus, which is the District’s
measurement focus, interest cost incurred before the end of a construction period
should be recognized as an expense in the period in which the cost is incurred and
should not be capitalized as part of the historical cost of a capital asset. In fiscal
year 2021 interest during construction is now expensed whereas interest costs
related to the construction of capital assets incurred prior to fiscal year 2021 were
included as a cost of those assets and will be capitalized when construction is
completed and the assets are placed in service.
During fiscal year 2021 the District reviewed GASB Statement No. 97, Certain
Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans –An Amendment of GASB
Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32
(“GASB Statement No. 97), for which certain requirements were effective
immediately while other requirements were effective for fiscal years and reporting
periods beginning after June 15, 2021,(earlier application of these requirements
was encouraged and permitted by requirement as specified within this Statement).
The primary objectives of this Statement are to (1) increase consistency and
comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a governing
board and the primary government performs the duties that a governing board
typically would perform; (2) mitigate costs associated with the reporting of certain
defined contribution pension plans as fiduciary component units in fiduciary fund
financial statements; and (3) enhance the relevance, consistency and comparability
of the accounting and financial reporting for Internal Revenue Code Section 457
deferred compensation plans (“Section 457 plan”) that meet the definition of a
pension plan and for benefits provided through those plans. Based on the
requirements in this Statement, the District’s defined contribution plan and
Section 457 plan do not qualify as fiduciary activities and their financial
statements are not required to be reported with the District’s basic financial
statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 35
During fiscal year 2021 the District implemented all applicable and relevant
sections of Implementation Guide No. 2019-1, Implementation Guidance Update-
2019, for which the objective is to provide guidance that clarifies, explains, or
elaborates on various GASB Statements and Implementation Guide No. 2019-2,
Fiduciary Activities, for which the objective is to provide guidance that clarifies,
explains, or elaborates on the requirements of Statement No. 84, Fiduciary
Activities.
During fiscal year 2020 the District did not implement any new GASB Statements.
The following GASB Statements which became effective during fiscal year 2021
and 2020 are not applicable to the District and there is no implementation impact
on the District’s financial reporting at this time.
•Statement No. 90, Majority Equity Interests, an amendment of GASB
Statements No. 14 and No. 61 (fiscal 2021)
•Statement No. 83, Certain Asset Retirement Obligations (fiscal 2020)
Recent Accounting Standards
GASB has issued additional guidance that is not yet effective. In addition, GASB
Statement No. 95, Postponement of the Effective Dates of Certain Authoritative
Guidance, was issued in May 2020 which postponed several of the GASB
Statements listed below. The new effective dates are indicated below. The District
is currently reviewing the provisions of the following GASB Statements to
determine the impact of implementation in future periods.
•Statement No. 87, Leases (fiscal 2022)
•Statement No. 91, Conduit Debt Obligations (fiscal 2023)
•Statement No. 92, Omnibus 2020 (fiscal 2022)
•Statement No. 93, Replacement of Interbank Offered Rates (fiscal 2022)
•Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements (fiscal 2023)
•Statement No. 96, Subscription-Based Information Technology
Arrangements (fiscal 2023)
• Implementation Guide No. 2019-3, Leases (fiscal 2022)
Reclassifications
Prior period financial statement amounts may have been reclassified to conform to
current period presentation. These reclassifications, if any, had no effect on the
changes in net position or total net position.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 36
2.Deposits and Investments
Deposits
At June 30, 2021,the reported amount of the District’s deposits was $97,274,120
and the bank balance was $104,666,278. Of the bank balance, $935,107 was
covered by the Federal Deposit Insurance Corporation (“FDIC”); $103,731,171 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$19,990,860 held in a trusted escrow account for the State that will be used to
make future bond payments.
At June 30, 2020,the reported amount of the District’s deposits was $75,013,119
and the bank balance was $80,405,147. O f the bank balance, $873,413 was covered
by the Federal Deposit Insurance Corporation (“FDIC”); $79,531,734 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$19,589,363 held in a trusted escrow account for the State that will be used to
make future bond payments.
Custodial credit risk for deposits is the risk that, in the event of bank failure, the
District’s deposits may not be returned to the District. Deposits in each bank are
insured by the FDIC in the amount of $250,000 for interest bearing accounts and
noninterest bearing accounts. The District’s investment policy complies with the
provisions of state laws and requires collateralization on repurchase agreements,
time certificates of deposit and deposits with banking institutions that are not
covered by the FDIC, and the collateralization level shall be 103% and shall be
based on the fair value of the pledged collateral.
Investments
The Secretary-Treasurer is authorized to invest, with the approval of the Board,
funds not immediately needed for the purpose to which said funds are applicable,
in the same manner as the state treasurer may invest funds of the State of
Missouri pursuant to Section 15, Article IV of the Constitution of Missouri,as
amended from time to time. The District’s investment policy conforms to the
investment policy guidelines for the State of Missouri. The District’s investment
policy authorizes the District to invest in the following instruments: U .S. Treasury
obligations, certificates of deposit, obligations of any agency or instrumentality of
the U.S., repurchase agreements, bankers’ acceptances, and commercial paper, all
according to terms specified in the policy.The District also has investments in
money market mutual funds that hold securities approved by the District’s
investment policy. At June 30, 2021,and June 30, 2020, all of the District’s
investments were in compliance with the District’s investment policy and Charter.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 37
A summary of deposits and investments as of June 30, 2021,and June 30, 2020 is
as follows:
A reconciliation to the Statements of Net Position is as follows:
Investment Type Cost Fair Value Cost Fair Value
Deposits 97,274,120$ 97,274,120$ 75,013,119$ 75,013,119$
Money M arket Mutual Funds 19,990,860 19,990,860 19,589,363 19,589,363
U.S. Treasury a nd
A gency Ob ligations 539,097,325 538,632,467 506,727,851 513,292,985
Commercial Paper 46,126,622 46,135,900 50,443,589 50,587,703
Total 702,488,927$ 702,033,347$ 651,773,922$ 658,483,170$
2021 2020
2021 2020
Cash and C ash Equivalent s
Unrestricted Current 91,337,843$ 67,802,872$
Restricted Current 4,629,689 3,580,818
Restricted Non-Current 26,297,303 25,741,021
In vestments
Unrestricted Current 210,940,744 264,322,528
Restricted Current 12,587,475 17,921,368
Restricted Non-Current 125,637,074 90,301,459
Long-Term Inve stment s
Restricted Non-Current 32,199,117 30,682,863
Ot he r 198,404,102 158,130,241
Total 702,033,347$ 658,483,170$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 38
Interest Rate Risk
As of June 30, 2021,and 2020, the District had the following investments and
maturities:
In accordance with the District’s investment policy, the District will minimize the
risk that the fair value of debt securities in the portfolio will fall due to increases
in general interest rates by:
1.Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity;
2.Investing operating funds primarily in short-term securities;
3.Complying with state law which limits the maximum stated maturities to
five years on any investment from the date of purchase.
Long-Term Investments
While the majority of the District’s portfolio is made up of short-term investments,
the District also categorizes a sizeable amount as long-term under the categories
discussed in Note 1, Summary of Significant Accounting Policies. The District is
allowed to purchase long-term callable securities. These callable securities give the
issuer the right to redeem at predetermined prices at a specific time prior to
maturity. When a security is called, the District reflects an immediate
reclassification from long-term investment to cash.
Weighted Weighted
Average Average
Maturity Maturity
Inve stment Type Fair Value (Years)Fair Value (Years)
U.S. Treasury Ob ligations 338,993,883$ 1.16 157,710,696$ 1.58
U.S. A gency Ob ligations 199,638,584 1.13 355,582,289 0.86
Commerci al Paper 46,135,900 0.24 50,587,703 0.13
Total 584,768,367$ 1.07 563,880,688$ 1.00
2021 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 39
Custodial/Credit Risk
The District will minimize credit risk for investments, the risk of loss due to failure
of the security issuer or backer, by:
1.Prequalifying the financial institutions, broker/dealers, intermediaries, and
advisors with which the District will do business;
2.Diversifying the portfolio so that potential losses on individual securities
will be minimized.
In accordance with its investment policy, the District limits its investments in
these investment types to those investments with the top rating issued by
Nationally Recognized Statistical Rating Organizations. As of June 30, 2021,and
June 30, 2020, the District’s investments in commercial paper were rated A-1 by
Standard & Poor’s (“S&P”) and P-1 by Moody’s Investors Service (“Moody’s”). The
District’s investments in U.S. Agency obligations that do not carry the explicit
guarantee of the U.S. Government all carry a rating assigned by S&P of AA+ or
higher. Money market investments are rated as AAAm and Aaa-mf by S&P and
Moody’s, respectively.
Concentration of Credit Risk
The District’s investment policy places no limit on the amount the District may
invest in any one issuer with respect to collateralized time and demand deposits.
U.S. Treasury obligations are not limited. U.S. Agency obligations and
government-sponsored enterprises are limited to 60% of the portfolio, with no more
than 30% of the total portfolio invested in securities of any one agency; and
collateralized repurchase agreements are limited to 50% of the portfolio. U.S.
Agency callable securities are limited to 30% of the portfolio, and commercial paper
and bankers’ acceptances are limited to 25% each, with no more than 5% of the
total portfolio invested in any one issuer. The following table lists investments in
issuers that represent 5% or more of total investments at either June 30, 2021, or
June 30, 2020:
Is suer 2021 2020
Treasury Notes 58.0 28.0
Federal Home Loan B ank 13.3 19.3
Federal Farm C re dit Funding C orp 10.7 14.0
Federal Home Loan B ank Discount Note 2.7 7.7
Federal Agricul ture M ort gage A ssoci ation 1.4 7.5
Tennes see Valley A ssoci ation 0.0 6.4
Total Investm ents
Percent Of
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 40
Fair Value Measurement and Application
The District categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles pursuant to
GASB Statement No. 72,Fair Value Measurement and Application. T he hierarchy
is based on the valuation inputs used to measure the fair value of the asset. Level
1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
The District has the following recurring fair value measurements as of June 30,
2021, and June 30, 2020:
Money Market Mutual Funds of $20.0 million and $19.6 million,
respectively, are valued using a market approach to measuring fair
value prices that considers relevant information generated by market
transactions involving identical or similar assets or groups of assets.
(Level 2 inputs)
U.S. Treasury and Agency Obligations of $538.6 million and $513.3
million, respectively, are valued using a market approach to
measuring fair value prices that considers relevant information
generated by market transactions involving identical or similar
assets or groups of assets.(Level 2 inputs)
Commercial Paper of $46.1 million and $50.6 million, respectively, is
valued using a market approach to measuring fair value prices that
considers relevant information generated by market transactions
involving identical or similar assets or group of assets. (Level 2
inputs)
See Notes 16 and 17 for information regarding the cash and investments held by
the Fiduciary Pension Trust Fund.
3.Notes Receivable
The District has a note receivable with Missouri American Water Company
(“MOAM”)for its portion of the capital costs related to the Lower Meramec
Wastewater Treatment Plant. The original loan established in fiscal year 2008
bears interest at 4.35%, while the two loans added during fiscal year 2013 bear
interest at 4.50% and 3.52%. The current portion of this note is included in the
Unrestricted Other receivables line on the Statements of Net Position. The note
receivable will mature in fiscal year 2033.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 41
At June 30, 2021, future payments are as follows:
At June 30, 2020, future payments were as follows:
The District also had a note receivable due to its participation in the Contractor
Loan Fund, a consortium of local organizations desiring to pool bank loans, private
investment, and new market tax credits to provide access to capital for Minority
and Women-owned Business Enterprise companies that are certified through a
City of St. Louis agency. In fiscal 2020, the Contractor Loan Fund consortium
elected to transfer the existing loans and future responsibility to a successor entity.
The District’s remaining cash balance in the Contractor Loan Fund of $123,413
was conveyed to the successor entity in fiscal 2021. At June 30, 2021 and 2020,
MSD’s note receivable related to the Contractor Loan Fund was $0 for both fiscal
years.
2022 1,154,696$
2023 1,154,696
2024 1,154,696
2025 1,154,696
2026 1,154,696
2027-2031 5,773,479
2032-2033 1,718,494
13,265,453
Less: Amount repr es en ting interest 2,854,724
Total Notes Rec ei vable 10,410,729$
Cl assification in Statement of Net Position:
Current - Other receivables 716,027$
Non-current - Notes receivable 9,694,702
Total Notes Rec eivable 10,410,729$
2021 1,154,696$
2022 1,154,696
2023 1,154,696
2024 1,154,696
2025 1,154,696
2026-2030 5,773,479
2031-2033 2,873,190
14,420,149
Less: Amount repr es en ting interest 3,323,520
Total Notes Rec ei vable 11,096,629$
Cl assification in Statement of Net Position:
Current - Other receivables 685,900$
Non-current - Notes receivable 10,410,729
Total Notes Rec eivable 11,096,629$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 42
4.Capital Assets
The following is a summary of capital assets changes for the fiscal years ended
June 30, 2021 and 2020:
Balance Balance
June 30, 2020 Ju ne 30, 2021
Capital assets not being depr ec iated:
Land 78,333,629$ 1,235,681$ —$ 79,569,310$
Construction in progress 1,012,925,929 299,650,837 (118,543,325) 1,194,033,441
Total capital assets not being depr ec iated 1,091,259,558 300,886,518 (118,543,325) 1,273,602,751
Capital assets being depr ec iated:
Treatm ent and disposal plant
and equipment 1,289,884,442 14,244,282 (480,012) 1,303,648,712
Collection and pum ping plant 2,974,542,039 120,283,066 (1,756,341) 3,093,068,764
Gener al plant and equipment 100,949,737 6,083,654 (3,516,747) 103,516,644
Total capital assets being depr ec iated 4,365,376,218 140,611,002 (5,753,100) 4,500,234,120
Less: Accumulated depreciation:
Treatm ent and disposal pl an t
and equipm en t (651,154,735) (35,699,307) 443,044 (686,410,998)
Collection and pumping pl an t (879,675,620) (50,729,803) 663,491 (929,741,932)
Gener al plant an d equipment (77,916,252) (4,923,159) 3,497,805 (79,341,606)
Total ac cumulated depr ec iation (1,608,746,607) (91,352,269) 4,604,340 (1,695,494,536)
Total capital assets being depr ec iated, net 2,756,629,611 49,258,733 (1,148,760) 2,804,739,584
Tot al Capit al Assets 3,847,889,169$ 350,145,251$ (119,692,085)$ 4,078,342,335$
Addi tions Deletions
Balance Balance
June 30, 2019 Ju ne 30, 2020
Capital assets not being depr ec iated:
Land 74,274,584$ 4,059,045$ —$ 78,333,629$
Construction in progress 956,321,065 289,293,915 (232,689,051) 1,012,925,929
Total capital assets not being depr ec iated 1,030,595,649 293,352,960 (232,689,051) 1,091,259,558
Capital assets being depr ec iated:
Treatm ent an d di sposal plant
and equipment 1,277,635,246 13,871,749 (1,622,553) 1,289,884,442
Collection and pum ping plant 2,749,946,498 225,843,281 (1,247,740) 2,974,542,039
Gener al plant and equipment 99,318,349 4,493,834 (2,862,446) 100,949,737
Total capital assets being depr ec iated 4,126,900,093 244,208,864 (5,732,739) 4,365,376,218
Less: Accumulated deprec iation:
Treatm ent and disposal pl an t
and equipm en t (616,903,498) (35,588,610) 1,337,373 (651,154,735)
Collection and pumping pl an t (832,953,875) (47,278,724) 556,979 (879,675,620)
Gener al plant an d eq uipment (75,921,957) (4,765,978) 2,771,683 (77,916,252)
Total ac cumulated depr ec iation (1,525,779,330) (87,633,312) 4,666,035 (1,608,746,607)
Total capital assets being depr ec iated, net 2,601,120,763 156,575,552 (1,066,704) 2,756,629,611
Tot al Capit al Assets 3,631,716,412$ 449,928,512$ (233,755,755)$ 3,847,889,169$
Addi tions Deletions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 43
5.Property Tax
On or before October 1 of each year, the District levies ad valorem taxes on all
taxable tangible property, real and personal, within its boundaries based on
assessed valuations established by the City of St. Louis and St. Louis County
Assessors. Taxes levied are used for stormwater operations,maintenance, and
construction. T axes are recorded as non-operating revenues and recognized, net of
estimated refunds and estimated uncollectible amounts, in the period for which
the taxes are levied. Property tax bills are typically mailed in October. They
become delinquent and represent a lien on the related property if not paid by
December 31. All property taxes are billed and collected by the City of St.Louis
and St.Louis County Collectors of Revenue and are remitted to the District
monthly.
In fiscal years 2021 and 2020, the District recorded revenue from property taxes
in the amount of $43,624,302 and $35,439,441,respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 44
6.Long-Term Liabilities
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2021:
Original Balance Balance
Issuance June 30,June 30,Current
Amounts 2020 Additions Retirements 2021 Portion
Bonds and Notes Payable:
W astewater Sys tem Senior Revenue Bonds:
S eries 2010B 85,000,000$ 85,000,000$ —$ —$ 85,000,000$ —$
S eries 2011B 52,250,000 13,725,000 —(13,725,000)——
S eries 2012A 225,000,000 45,620,000 —(5,300,000)40,320,000 5,300,000
S eries 2012B 141,730,000 41,525,000 —(3,725,000)37,800,000 4,050,000
S eries 2013B 150,000,000 42,380,000 —(3,390,000)38,990,000 3,520,000
S eries 2015B 223,855,000 168,950,000 —(2,920,000)166,030,000 3,070,000
S eries 2016C 150,000,000 141,695,000 —(2,955,000)138,740,000 3,070,000
S eries 2017A 316,175,000 309,240,000 —(3,660,000)305,580,000 5,490,000
S eries 2019B 52,130,000 52,130,000 —(835,000)51,295,000 880,000
S eries 2019C (Taxable)276,260,000 276,260,000 —(1,515,000)274,745,000 1,545,000
S eries 2020B 120,000,000 —120,000,000 (1,945,000)118,055,000 1,895,000
W ater Infrastructure Finance and Innovation Act (WIFIA) Senior Bonds:
S eries 2018A 47,722,204 261,480 — — 261,480 —
Wastewater System Senior Refunding Revenue Bonds, Direct Placement:
S eries 2021C 5,620,000 — 5,620,000 — 5,620,000 —
Water Pollution Control and Drinking Water Subordinate Revenue Bonds (State Revolvi ng Funds Program):
S eries 2004B 161,280,000 55,730,000 —(9,105,000)46,625,000 9,540,000
S eries 2005A 6,800,000 2,765,000 —(365,000)2,400,000 375,000
S eries 2006A 42,715,000 18,550,000 —(2,475,000)16,075,000 2,530,000
S eries 2006B 14,205,000 6,650,000 —(760,000)5,890,000 780,000
S eries 2008A/B 40,000,000 19,795,000 —(2,005,000)17,790,000 2,050,000
M issouri Department of Natural Resources:
S eries 2009A 23,000,000 13,068,200 —(1,176,500)11,891,700 1,203,700
S eries 2010A 7,980,700 5,079,500 —(396,600)4,682,900 404,600
S eries 2010C 37,000,000 23,111,000 —(1,842,000)21,269,000 1,890,000
S eries 2011A 39,769,300 30,449,300 —(1,838,000)28,611,300 1,884,000
S eries 2013A 52,000,000 41,044,000 —(2,365,000)38,679,000 2,427,000
S eries 2015A 75,000,000 62,478,000 —(3,505,000)58,973,000 3,589,000
S eries 2016A 20,000,000 17,158,430 722,570 (880,000)17,001,000 899,000
S eries 2016B 75,500,000 61,285,085 7,850,915 (3,286,000)65,850,000 3,358,000
S eries 2018B 25,267,000 18,228,388 6,074,524 —24,302,912 533,000
S eries 2019A 23,952,000 6,291,992 15,719,694 —22,011,686 —
S eries 2020A 22,000,000 —9,983,418 —9,983,418 —
S eries 2021A 63,101,000 —5,333,065 —5,333,065 —
S eries 2021B 40,201,000 —7,260,558 —7,260,558 874,000
2,615,513,204$ 1,558,470,375$ 178,564,744$ (69,969,100)$ 1,667,066,019$ 61,157,300$
Add:
Unamortized premium, net of discount 162,860,332
Total Bonds and Notes Payable 1,829,926,351$
Current Portion of Bonds and Notes Payable 61,157,300$
Non-Current Bonds and Notes Payable 1,768,769,051
Total Bonds and Notes Payable 1,829,926,351$
Net Pension Liability 57,792,913$ (28,297,735)$ —$ 29,495,178$ —$
Total OPEB Liability 23,164,618$ 1,756,010$ —$ 24,920,628$ —$
Deposits and Accrued Expenses
622,913$ 64,055$ —$ 686,968$ —$
Compensated absences 9,249,172 799,410 (586,805) 9,461,777 946,178
Total Deposits and Accrued Expenses 9,872,085$ 863,465$ (586,805)$ 10,148,745$ 946,178$
Current Portion (Compensated absences) in Current Deposits and Accrued Expenses 946,178$
Non-Current Deposits and Accrued Expenses 9,202,567
Total Deposits and Accrued Expenses 10,148,745$
Landfill closure and postclosure costs
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 45
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2020:
Original Balance Balance
Issuance June 30,June 30,Current
Am ounts 2019 Additions Retirements 2020 Portion
Bonds and Notes Payable:
Wa stewater Sys tem Senior Revenue B onds:
S eries 2010B 85,000,000$ 85,000,000$ —$ —$ 85,000,000$ —$
S eries 2011B 52,250,000 15,945,000 —(2 ,2 20,000)13,725,000 2,330,000
S eries 2012A 225,000,000 154,040,000 —(108,420,000)45,620,000 5,300,000
S eries 2012B 141,730,000 128,840,000 —(87,315,000)41,525,000 3,725,000
S eries 2013B 150,000,000 113,615,000 —(71,235,000)42,380,000 3,390,000
S eries 2015B 223,855,000 190,135,000 —(21,185,000)168,950,000 2,920,000
S eries 2016C 150,000,000 144,535,000 —(2 ,8 40,000)141,695,000 2,955,000
S eries 2017A 316,175,000 312,760,000 —(3 ,5 20,000)309,240,000 3,660,000
S eries 2019B 52,130,000 —52,130,000 —52,130,000 835,000
S eries 2019C (Taxable)276,260,000 —276,260,000 —276,260,000 1,515,000
Wa ter Infra structure Finance and Innovation A ct (WIFIA) Senior Bonds:
S eries 2018A 47,722,204 261,480 — — 261,480 —
Water Pollution Control and Drinking Wa ter Sub ordinate Revenue Bonds (S tate Revolving Funds Program):
S eries 2004B 161,280,000 64,590,000 —(8 ,8 60,000)55,730,000 9,105,000
S eries 2005A 6,800,000 3,120,000 —(355,000)2,765,000 365,000
S eries 2006A 42,715,000 20,965,000 —(2 ,4 15,000)18,550,000 2,475,000
S eries 2006B 14,205,000 7,400,000 —(750,000)6,650,000 760,000
S eries 2008A/B 40,000,000 21,765,000 —(1 ,9 70,000)19,795,000 2,005,000
M issouri Department of Natura l Resources:
Energy Loan Program 223,793 16,163 —(16,163)——
S eries 2009A 23,000,000 14,218,100 —(1 ,1 49,900)13,068,200 1,176,500
S eries 2010A 7,980,700 5,468,200 —(388,700)5,079,500 396,600
S eries 2010C 37,000,000 24,906,000 —(1 ,7 95,000)23,111,000 1,842,000
S eries 2011A 39,769,300 32,241,300 —(1 ,7 92,000)30,449,300 1,838,000
S eries 2013A 52,000,000 43,349,000 —(2 ,3 05,000)41,044,000 2,365,000
S eries 2015A 75,000,000 65,902,000 —(3 ,4 24,000)62,478,000 3,505,000
S eries 2016A 20,000,000 13,129,064 4,890,366 (861,000)17,158,430 880,000
S eries 2016B 75,500,000 45,582,626 18,919,459 (3 ,2 17,000)61,285,085 3,286,000
S eries 2018B 25,267,000 2,880,349 15,348,039 —18,228,388 —
S eries 2019A 23,952,000 —6,291,992 —6,291,992 —
2,364,814,997$ 1,510,664,282$ 373,839,856$ (326,033,763)$ 1,558,470,375$ 56,629,100$
A dd:
Una mortized premium, net of discount 131,864,536
Total Bonds and Notes Payable 1,690,334,911$
Current Portion of Bonds and Notes Payable 56,629,100$
Non-Current Bonds and Notes Payable 1,633,705,811
Total Bonds and Notes Payable 1,690,334,911$
Net Pension L iabilit y 74,396,737$ (1 6,603,824)$ —$ 57,792,913$ —$
Total OPEB Liability 24,164,395$ (999,777)$ —$ 23,164,618$ —$
Deposits and Accrued Expenses
619,384$ 3,529$ —$ 622,913$ —$
Compensated absences 8,977,517 788,826 (517,171)9,249,172 2,312,293
Total Deposits and Accrued Expenses 9,596,901$ 792,355$ (517,171)$ 9,872,085$ 2,312,293$
Current Portion (Compensated absences) in Current Deposits and Ac crued Expenses 2,312,293$
Non-Current Deposits and Accrued Expenses 7,559,792
Total Deposits and Accrued Expenses 9,872,085$
Landfill closure and postclosure cos ts
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 46
Voter Approved Bond Authorizations
The District has received voter authorization for revenue bonds on the dates and
in the amounts presented below. These funds were sought to enable the District
to comply with federal and state clean water requirements. Only new bond
issuances count against these authorizations while none of the refunding issuances
count against them. From the total voter authorization of $3,120,000,000,
$853,126,796 has not been issued as of June 30, 2021.
Wastewater System Senior Refunding Revenue Bonds Payable, Direct
Placement
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $5,620,000 of Wastewater System Senior Refunding Revenue
Bonds Series 2021C (“Series 2021C”) which closed in May 2021 to coincide with
the call date of the outstanding Series 2011B bonds. These Series 2021C bonds,
which were previously identified as Series 2021A but were subsequently renamed
due to the timing of their issuance, were issued to refund the Series 2011B bonds
maturing in fiscal years 2030 through 2032 totaling $11,395,000. Proceeds of
$7,371,752, including a premium of $1,751,752, and $4,025,780 in excess debt
service reserves the District contributed were used to refund all the remaining
outstanding Series 2011B bonds and the $2,532 interest accrued thereon. The
related liability for the Series 2011B bonds refunded were removed from the
District’s financial statements in fiscal 2021.
This direct placement refunding decreased total debt service payments over the
next 11 years by $7,527,111, resulting in an economic gain (difference between the
present values of the debt service requirements on the old and new debt adjusted
for the additional cash paid) of $2,553,241. These Series 2021C senior direct
placement bonds have interest rates of 5.00% and are payable in semiannual
installments at varying amounts through May 1, 2032.
Date of Authorization
Voter Authorized
Am ount
February 2 004 500,000,000$
Augus t 2008 275,000,000
June 2 012 945,000,000
April 2016 900,000,000
April 2021 500,000,000
Total 3,120,000,000$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 47
Principal and Interest Requirements on Senior Refunding Revenue
Bonds Payable, Direct Placement
The annual principal and interest requirements to maturity on direct placement
senior refunding revenue bonds payable outstanding as of June 30, 2021, are as
follows:
Wastewater System Revenue Bonds Payable
In December 2020, the District issued $120,000,000 of Wastewater System Senior
Revenue Bonds Series 2020B (“Series 2020B”). T hese bonds were issued pursuant
to the April 2016 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities
and as of June 30, 2021, $64,112,703 has been expended. A premium of
$37,194,201 was received on the issuance of Series 2020B. These Series 2020B
senior bonds have an interest rate of 5.0%and are payable in semiannual
installments at varying amounts through June 1, 2050.
In December 2019, the District issued $52,130,000 of Wastewater System Senior
Revenue Bonds Series 2019B (“Series 2019B”). These bonds were issued pursuant
to the April 2016 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. A premium of $12,059,977 was
received on the issuance of Series 2019B. These Series 2019B senior bonds have
an interest rate of 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2049.
Years ending J une 3 0,Princ ipal Interest Total
2022 —$ 279,439$ 279,439$
2023 —281,000 281,000
2024 —281,000 281,000
2025 —281,000 281,000
2026 —281,000 281,000
2027-2031 3,625,000 1,317,500 4,942,500
2032 1,995,000 99,750 2,094,750
Total 5,620,000$ 2,820,689$ 8,440,689$
Direc t Plac ement 2021C
Wastew ater System Senior R ef unding Revenue Bonds Payab le
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 48
In December 2019, the District issued $276,260,000 of Taxable Wastewater System
Senior Refunding Revenue Bonds Series 2019C (“Series 2019C”). These bonds were
issued to partially advance refund the Series 2012A bonds maturing in fiscal years
2040 through 2042 totaling $103,120,000,the Series 2012B bonds maturing in
fiscal years 2028 through 2034 totaling $83,925,000 (excludes $940,000 of the May
2031 principal payment due), the Series 2013B bonds maturing in fiscal years 2031
and 2032, 2036 through 2038, and 2040 through 2043 totaling $67,985,000 and the
Series 2015B bonds maturing in fiscal years 2044 through 2045 totaling
$18,400,000.
The Series 2019C refunding net proceeds of $274,474,218 (after payments of
$1,063,039 in underwriter fees and $722,743 in issuance costs) and the
$26,045,142 in excess debt service reserves the District contributed were used to
purchase U.S. government securities. These securities were deposited in an
irrevocable trust with an escrow agent to provide for the future debt service
payments defined above on the Series 2012A, Series 2012B, Series 2013B and
Series 2015B bonds. The sum of the $300,519,360 deposited into escrow and the
earnings on the U.S. government securities will fund the $273,430,000 advanced
refunded principal payments on their call dates (May 1, 2022 for Series 2012A and
Series 2012B, May 1, 2023 for Series 2013B and May 1, 2025 for Series 2015B) and
the interest thereon. Interest only payments of $13,671,500 were made from the
escrow account in fiscal year 2021. All $273,430,000 debt defeased in substance to
be paid from the escrow account remains outstanding as of June 30, 2021. As a
result of placing the cash with an escrow agent in a trust, Series 2012A, Series
2012B, Series 2013B, and Series 2015B bonds were partially defeased and the
related liability for those bonds were removed from the District’s financial
statements in fiscal year 2020. This advance refunding decreased total debt
service payments over the next 25 years by $98,737,402, resulting in an economic
gain (difference between the present values of the debt service requirements on the
old and new debt adjusted for the additional cash paid) of $42,691,317. These
Series 2019C senior bonds have interest rates ranging from 1.824% to 3.259% and
are payable in semiannual installments at varying amounts through May 1, 2045.
In December 2017, the District issued $316,175,000 of Wastewater System Senior
Revenue Bonds Series 2017A (“Series 2017A”). These bonds were issued for two
purposes: $116,175,000 was issued to partially advance refund the Series 2011B
bonds maturing in fiscal years 2022 through 2029 totaling $23,345,000, the Series
2012A bonds maturing in fiscal years 2023 through 2032 totaling $50,060,000
(excludes $240,000 of the May 2030 principal payment due), the Series 2013B
bonds maturing in fiscal years 2024 through 2029 totaling $26,385,000, and the
Series 2015B bonds maturing in fiscal years 2026 through 2029 totaling
$25,970,000. The remaining $200,000,000 was issued for the purpose of
constructing, repairing, replacing, and equipping new and existing District
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 49
wastewater facilities. All funds from this issuance have been expended.
Approximately $47,500,000 was issued pursuant to the June 2012 authorization
and $152,500,000 was issued pursuant to the April 2016 authorization. A premium
of $37,823,556 was received on the $200,000,000 portion of the Series 2017A. These
Series 2017A senior bonds have interest rates ranging from 2.0% to 5.0% and are
payable in semiannual installments at varying amounts through May 1, 2047.
The Series 2017A refunding net proceeds of $141,343,662 (including a premium of
$25,967,878 and additional proceeds of $1,220 and after payments of $428,483 in
underwriting fees and $371,953 in issuance costs) and the $934,325 in excess debt
service reserves the District contributed were used to purchase U.S. government
securities. These securities were deposited in an irrevocable trust with an escrow
agent to provide for the future debt service payments defined above on the Series
2011B, Series 2012A, Series 2013B, and Series 2015B bonds. The sum of the
$142,277,987 deposited into escrow and the earnings on the U.S. government
securities will fund the $125,760,000 advanced refunded principal payments on
their call dates (May 1, 2021 for Series 2011B, May 1, 2022 for Series 2012A, May
1, 2023 for Series 2013B, and May 1, 2025 for Series 2015B) and the interest
thereon. Interest payments of $6,017,025 and principal payments of $23,345,000
were made from the escrow account in fiscal year 2021. Of the $125,760,000 debt
defeased in substance to be paid from the escrow account, $102,415,000 remains
outstanding as of June 30, 2021. As a result of placing the cash with an escrow
agent in a trust, Series 2011B, Series 2012A, Series 2013B, and Series 2015B
bonds were partially defeased and the related liability for those bonds were
removed from the District’s financial statements in fiscal 2018. This advance
refunding decreased total debt service payments over the next 14 years by
$12,623,385,resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $9,481,147.
In December 2016, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2016C (“Series 2016C”). T hese bonds were issued pursuant
to the June 2012 authorization: in this case for the purpose of construction,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. A premium of $17,678,054 was
received on the issuance of Series 2016C.These Series 2016C senior bonds have
interest rates ranging from 2.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2046.
In December 2015, the District issued $223,855,000 of Wastewater System Senior
Revenue Bonds Series 2015B (“Series 2015B”). These bonds were issued for two
purposes: $73,855,000 was issued to advance refund the Series 2006C and Series
2008A bonds and $150,000,000 was issued pursuant to the June 2012
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 50
authorization:in this case for the purpose of constructing, repairing, replacing, and
equipping new and existing District wastewater facilities. All funds from this
issuance have been expended.These Series 2015B senior bonds have interest rates
ranging from 3.0% to 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2045; however,in December 2017, there was an advance
refunding of the non-refunding Series 2015B bonds for the fiscal years 2026
through 2029 totaling $25,970,000. As a result of this advance refunding, Series
2015B bonds are considered partially defeased. See the explanation for Series
2017A above for further information. In December 2019, there was a taxable
advance refunding of the Series 2015B bonds for the fiscal years 2044 through 2045
totaling $18,400,000. As a result of this advance refunding, Series 2015B bonds
are considered partially defeased. See the explanation for Series 2019C above for
further information.
The Series 2015B refunding net proceeds of $86,848,034 (including a premium of
$13,623,487 and after payments of $337,848 in underwriting fees and $292,605 in
issuance costs) and the $8,945,557 in excess debt service reserves the District
contributed were used to purchase U.S. government securities. These securities
were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the Series 2006C and Series 2008A bonds. All principal
and interest payments on the advance refunded Series 2006C and Series 2008A
bonds have been paid from escrow and no amounts remain outstanding on these
bonds. As a result of placing the cash with an escrow agent in a trust, Series 2006C
and Series 2008A bonds were defeased and the liability for those bonds were
removed from the District’s financial statements in fiscal 2016. The original
$60,000,000 Series 2006C bonds were issued pursuant to the February 2004
authorization and the original $30,000,000 Series 2008A bonds were issued
pursuant to the August 2008 authorization. This refunding decreased total debt
service payments over the next 22 years by $33,032,176, resulting in an economic
gain (difference between the present values of the debt service requirements on the
old and new debt adjusted for additional cash paid) of $14,544,866.
In December 2013, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2013B (“Series 2013B”). These bonds were issued pursuant
to the June 2012 authorization:in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2013B senior bonds
have interest rates ranging from 2.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2043; however, in December
2017, there was an advance refunding of the Series 2013B bonds for the fiscal years
2024 through 2029 totaling $26,385,000. As a result of this advance refunding,
Series 2013B bonds are considered partially defeased. See the explanation for
Series 2017A above for further information. In December 2019, there was a taxable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 51
advance refunding of the Series 2013B bonds for nine years within a span of 12
years from 2031 through 2043 totaling $67,985,000. As a result of this advance
refunding, Series 2013B bonds are considered partially defeased. See the
explanation for Series 2019C above for further information.
In November 2012, the District issued $141,730,000 of Wastewater System Senior
Refunding Bonds Series 2012B (“Series 2012B”). These bonds were issued to
advance refund the Series 2004A bonds maturing in fiscal years 2015 and
thereafter. T hese Series 2012B senior bonds have interest rates ranging from 1.3%
to 5.0% and are payable in semiannual installments at varying amounts through
May 1, 2034. The Series 2012B’s net proceeds of $169,991,298 (including a
premium of $29,613,138 and after payments of $761,593 in underwriting fees and
$590,247 in issuance costs) were used to purchase U.S. government securities.
These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the bonds. All principal and
interest payments on the advance refunded Series 2004A bonds have been paid
from escrow and no amounts remain outstanding on these bonds. As a result of
placing the cash with an escrow agent in a trust, Series 2004A bonds were partially
defeased and the liability for those bonds related to a date after May 1, 2014,were
removed from the District’s financial statements in fiscal 2013. The original
$175,000,000 Series 2004A bonds were issued pursuant to the February 2004
authorization. This refunding decreased total debt service payments over the next
22 years by $28,601,189, resulting in an economic gain (difference between the
present values of the debt service requirements on the old and new debt) of
$22,439,375. In December 2019, there was a taxable advance refunding of the
Series 2012B bonds for the fiscal years 2028 through 2034 totaling $83,925,000
(excludes $940,000 of the May 2031 principal payment due). As a result of this
advance refunding, Series 2012B bonds are considered partially defeased. See the
explanation for Series 2019C above for further information.
In August 2012, the District issued $225,000,000 of Wastewater System Senior
Revenue Bonds Series 2012A (“Series 2012A”). T hese bonds were issued pursuant
to the June 2012 authorization:in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2012A senior bonds
have interest rates ranging from 2.5% to 5.3% and are payable in semiannual
installments at varying amounts through May 1, 2042; however, in December
2017, there was an advance refunding of the Series 2012A bonds for the fiscal years
2023 through 2032 totaling $50,060,000 (excludes $240,000 of the May 2030
principal payment due). As a result of this advance refunding, Series 2012A bonds
are considered partially defeased. See the explanation for Series 2017A above for
further information.In December 2019, there was a taxable advance refunding of
the Series 2012A bonds for the fiscal years 2040 through 2042 totaling
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 52
$103,120,000. As a result of this advance refunding, Series 2012A bonds are
considered partially defeased. See the explanation for Series 2019C above for
further information.
In December 2011, the District issued $52,250,000 of Wastewater System Senior
Revenue Bonds Series 2011B (“Series 2011B”). T hese bonds were issued pursuant
to the August 2008 authorization:in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2011B senior bonds
have interest rates ranging from 3.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2032; however, in December
2017, there was an advance refunding of the Series 2011B bonds for the fiscal years
2022 through 2029 totaling $23,345,000. See the explanation for Series 2017A
above for further information. In May 2021 there were direct placement senior
refunding revenue bonds issued to refund the remaining fiscal years 2030 through
2032 totaling $11,395,000. See the explanation for Series 2021C above for further
information. As a result of the advance refunding and direct placement, Series
2011B bonds are considered fully defeased.
In January 2010, the District issued $85,000,000 of Taxable Wastewater System
Senior Revenue Bonds (Build America Bonds –Direct Pay) Series 2010B (“Series
2010B”). These bonds were issued pursuant to the August 2008 authorization:in
this case for the purpose of constructing, repairing, replacing, and equipping new
and existing District wastewater facilities. All funds from this issuance have been
expended. These Series 2010B senior bonds have an interest rate of 5.9% and are
payable in semiannual installments at varying amounts through May 1, 2039. As
Build America Bonds under The American Recovery and Reinvestment Act
(“ARRA”) of 2009, the District receives a subsidy payment from the Federal
government equal to a percentage of the interest paid. In fiscal years 2013 and
prior the rate was 35%. Beginning with refund payments processed on March 1,
2013,and annually beginning on October 1, 2013, the IRS has adjusted this rate
as part of the sequestration. In fiscal year 2021 the subsidy percentage was 33.0%
while for 2020 the subsidy percentage was 32.9%. In fiscal year 2022 the subsidy
percentage is expected to be 33.0%.
The revenue bonds do not constitute a legal debt or liability for the District, the
State of Missouri, or for any political subdivision thereof and do not constitute
indebtedness within the meaning of any constitutional or statutory debt limitation
or restriction. Revenue derived from the operations of the Wastewater System is
pledged for the retirement of the outstanding Wastewater System Senior Revenue
Bonds listed above. Under the provisions of the bond indentures, the District
covenants to establish rates for the services of the Wastewater System sufficient
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 53
to fund operations, maintain reserves, and provide revenues to apply principal and
interest on these bonds.
The issuance of the revenue bonds does not obligate the District to levy any form
of taxation or to make any appropriation for their payments in any fiscal year. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues.
Water Pollution Control and Drinking Water Revenue Bonds Payable
In October 2008, the State Environmental Improvement and Energy Resources
Authority (“Authority”) authorized and issued $69,435,000 of Water Pollution
Control and Drinking Water Revenue Bonds (State Revolving Funds Programs)
Series 2008A/B (“Series 2008A/B”). The Series 2008A/B bonds provided funds to
issue loans to 14 Missouri political subdivisions that used the funds to finance
water pollution control and drinking water projects. A portion of the proceeds of
the Series 2008A/B bonds issued by the Authority were used to purchase
subordinate Participant Revenue Bonds (“Participant Bonds”) authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $40,000,000, the proceeds of which were used for constructing,
repairing, and equipping new and existing wastewater facilities. All funds from
this issuance have been expended.The District’s Series 2008A/B Participant
Bonds originally had interest rates ranging from 4.0% to 5.7% but effective April
1, 2021, the District’s interest rate on all outstanding principal was modified to
0.83% but are still payable in semiannual installments at varying amounts
through January 1, 2029.
In November 2006, the Authority authorized and issued $22,105,000 of State
Revolving Funds Programs Series 2006B (“Series 2006B”). The Series 2006B
bonds provided funds to issue loans to seven Missouri political subdivisions that
used the funds to finance water pollution control and drinking water projects. A
portion of the proceeds of the Series 2006B bonds issued by the Authority were
used to purchase Participant Bonds authorized and issued by the District from the
February 2004 authorization in the aggregate principal amount of $14,205,000,
the proceeds of which were used for constructing, repairing, and equipping new
and existing wastewater facilities. All funds from this issuance have been
expended. The District’s Series 2006B Participant Bonds have interest rates
ranging from 4.0% to 5.0% and are payable in semiannual installments at varying
amounts through July 1, 2027.
In May 2006, the Authority authorized and issued $87,505,000 of State Revolving
Funds Programs Series 2006A (“Series 2006A”). The Series 2006A bonds provided
funds to issue loans to 13 Missouri political subdivisions that used the funds to
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 54
finance water pollution control and drinking water projects. A portion of the
proceeds of the Series 2006A bonds issued by the Authority were used to purchase
subordinate Participant Bonds authorized and issued by the District from the
February 2004 authorization in the aggregate principal amount of $42,715,000,
the proceeds of which were used for constructing, repairing, and equipping new
and existing wastewater facilities. All funds from this issuance have been
expended. The District’s Series 2006A Participant Bonds have interest rates
ranging from 3.5% to 4.5% and are payable in semiannual installments at varying
amounts through July 1, 2026.
In May 2005, the Authority authorized and issued $53,060,000 of State Revolving
Funds Programs Series 2005A (“Series 2005A”). The Series 2005A bonds provided
funds to issue loans to 10 Missouri political subdivisions and one Missouri non-
profit corporation that were used to finance water pollution control and drinking
water projects. A portion of the proceeds of the Series 2005A bonds issued by the
Authority were used to purchase subordinate Participant Bonds authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $6,800,000, the proceeds of which were used for constructing,
repairing, and equipping new and existing wastewater facilities. All funds from
this issuance have been expended. The District’s Series 2005A Participant Bonds
have interest rates ranging from 3.0% to 5.0% and are payable in semiannual
installments at varying amounts through July 1, 2026.
In May 2004, the Authority authorized and issued $179,780,000 of State Revolving
Funds Programs Series 2004B (“Series 2004B”). The Series 2004B bonds provided
funds to issue loans to seven Missouri political subdivisions that were used to
finance water pollution control projects. A portion of the proceeds of the Series
2004B bonds issued by the Authority were used to purchase subordinate
Participant Bonds authorized and issued by the District from the February 2004
authorization in the aggregate principal amount of $161,280,000, the proceeds of
which were used to finance the District’s three water pollution control construction
projects outlined in the agreement. All funds from this issuance have been
expended. The District’s Series 2004B Participant Bonds have interest rates
ranging from 2.0% to 5.3% and are payable in semiannual installments at varying
amounts through January 1, 2027.
The Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds do not constitute a
legal debt or liability for the District, the State of Missouri, or for any political
subdivision thereof and do not constitute indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction. The issuance of the Series
2004B, 2005A, 2006A, 2006B, and 2008A/B bonds and the Series 2009A, 2010A,
2010C, 2011A, 2013A, 2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and
2021B direct loans (pages 56-65) do not obligate the District to levy any form of
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 55
taxation or to make any appropriation for their payments in any fiscal year. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues.
In connection with the District’s issuance of the Participant Bonds, which were
purchased with the proceeds of the Series 2004B, 2005A, 2006A, 2006B, and
2008A/B bonds, the District participates in the State Revolving Loan Program
established by the Missouri Department of Natural Resources (“DNR”). Monies
from federal capitalization grants and state matching funds are used to fund a
bond reserve account for the participants.
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account and deposited in a
bond reserve account,in the District’s name,an additional 60% of the expenditure
amount for the Series 2004B bonds and 70% for the Series 2005A, 2006A, and
2006B bonds. For the Series 2008A/B bonds, 70% of the entire anticipated
borrowed amount was deposited into this bond reserve account at the beginning of
the loan versus as the expenditures were reimbursed. Interest earned from this
bond reserve account can be used by the District to fund interest payments on the
bonds.
On the date of each payment of the principal amount of the District’s Participant
Bonds, the trustee transfers from this bond reserve account to the master trustee
account an amount equal to 60% of the principal payment for the Series 2004B
bonds and 70% for the Series 2005A, 2006A, 2006B and 2008A/B bonds.
In accordance with the District’s Master Bond Ordinance No. 11713, adopted April
22, 2004, the District’s annual net operating revenues from wastewater activities,
as defined in the agreement, coupled with investments earnings,must be at least
125% of the current year’s principal and interest due on all senior bonds and at
least 115% of the current year’s principal and interest due on all bonds. On
June 30, 2021 and 2020, the District was in compliance with this covenant.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 56
Principal and Interest Requirements on Revenue Bonds Payable
The annual principal and interest requirements to maturity on revenue bonds
payable outstanding as of June 30, 2021,are as follows:
Water Infrastructure Finance and Innovation Act (WIFIA) Series 2018A
In December 2018, the Environmental Protection Agency (“EPA”) issued to the
District an amount totaling $47,722,204 for the purpose of constructing the Deer
Creek Sanitary Tunnel Pump Station and Sanitary Sewers Project. The principal
and interest on the bonds are expected to be paid from future wastewater revenues
and the bonds are issued from the April 2016 authorization. The Series 2018A
bonds are not subordinated. The District’s interest rate is 3.06% and is payable in
semiannual installments at varying amounts through May 1, 2053.
Principal and Interest Requirements on Water Infrastructure Finance
and Innovation Act (WIFIA) Series 2018A
As the District incurs approved capital expenditures, the EPA reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 3.06% based on the amount that has been borrowed.
As of June 30, 2021, the outstanding loan balance was $261,480. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2021B
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $40,201,000 for the purpose of improving, renovating,
repairing, replacing, and equipping the District’s Wastewater System. The
Years e nding J une 30,Princ ip al Intere st Total
2022 44,095,000$ 56,752,922$ 100,847,922$
2023 45,560,000 55,024,170 100,584,170
2024 46,960,000 53,403,686 100,363,686
2025 48,795,000 51,683,990 100,478,990
2026 50,490,000 49,836,979 100,326,979
2027-2031 240,315,000 218,854,834 459,169,834
2032-2036 270,650,000 166,519,042 437,169,042
2037-2041 335,055,000 102,605,928 437,660,928
2042-2046 213,865,000 37,885,111 251,750,111
2047-2050 49,550,000 5,119,250 54,669,250
Total 1,345,335,000$ 797,685,912$ 2,143,020,912$
Wastewater System R evenue Bonds Payab le/
Water Pollution Control and Drinking W ater
Revenue Bonds Payab le
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 57
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the April 2016 authorization. The
District’s interest rate is 0.78%and is payable in semiannual installments at
varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021B
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.78%based on the amount that has been borrowed.
As of June 30, 2021, the outstanding loan balance was $7,260,558. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2021A
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $63,101,000 for the purpose of constructing the Lower
Meramec Tunnel. The principal and interest on the bonds are expected to be paid
from future wastewater revenues and the bonds are issued from the April 2016
authorization. The District’s interest rate is 0.78%and is payable in semiannual
installments at varying amounts through July 1, 2044.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.78%based on the amount that has been borrowed.
As of June 30, 2021, the outstanding loan balance was $5,333,065. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2020A
In September 2020, the State of Missouri Direct Loan Program issued to the
District an amount totaling $22,000,000 for the purpose of constructing the Deer
Creek Tunnel Pump Stations. The principal and interest on the bonds are expected
to be paid from future wastewater revenues and the bonds are issued from the
April 2016 authorization. The District’s interest rate is 0.80%and is payable in
semiannual installments at varying amounts through July 1, 2042.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 58
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2020A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.80%based on the amount that has been borrowed.
As of June 30, 2021, the outstanding loan balance was $9,983,418. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2019A
In September 2019, the State of Missouri Direct Loan Program issued to the
District an amount totaling $23,952,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the April 2016 authorization. The
District’s interest rate is 0.98%and is payable in semiannual installments at
varying amounts through July 1, 2042.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2019A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.98% based on the amount that has been borrowed.
As of June 30, 2021, the outstanding loan balance was $22,011,686. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2018B
In December 2018, the State of Missouri Direct Loan Program issued to the District
an amount totaling $25,267,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the April 2016 authorization. The
District’s interest rate is 1.38%and is payable in semiannual installments at
varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2018B
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 1.38% based on the amount that has been borrowed.
As of June 30, 2021,the outstanding loan balance was $24,302,912. The payment
requirements to maturity will be determined after the debt is fully issued.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 59
State of Missouri Direct Loan Series 2016B
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,500,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through July 1, 2037.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016B
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016B outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2016A
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $20,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through January 1, 2037.
Years ending J une 3 0,Princ ipal Interest Total
2022 3,358,000$ 780,180$ 4,138,180$
2023 3,432,000 739,662 4,171,662
2024 3,507,000 698,256 4,205,256
2025 3,583,000 655,944 4,238,944
2026 3,661,000 612,714 4,273,714
2027-2031 19,540,000 2,381,382 21,921,382
2032-2036 21,766,000 1,150,080 22,916,080
2037-2038 7,003,000 84,342 7,087,342
Total 65,850,000$ 7,102,560$ 72,952,560$
State of M issouri Dire ct L oan Serie s 2016B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 60
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016A outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2015A
In August 2015, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through January 1, 2035.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2015A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending J une 3 0,Princ ipal Interest Total
2022 899,000$ 201,330$ 1,100,330$
2023 919,000 190,482 1,109,482
2024 939,000 179,394 1,118,394
2025 959,000 168,066 1,127,066
2026 981,000 156,492 1,137,492
2027-2031 5,233,000 599,736 5,832,736
2032-2036 5,829,000 270,012 6,099,012
2037 1,242,000 11,196 1,253,196
Total 17,001,000$ 1,776,708$ 18,777,708$
State of M issouri Dire ct L oan Serie s 2016A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 61
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2015A outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2013A
In October 2013, the State of Missouri Direct Loan Program issued to the District
an amount totaling $52,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. Effective
April 1, 2021, the District’s interest rate on all outstanding principal was modified
to 0.83% from 1.6% but is still payable in semiannual installments at varying
amounts through July 1, 2034.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2013A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending J une 3 0,Princ ipal Interest Total
2022 3,589,000$ 708,502$ 4,297,502$
2023 3,674,000 664,546 4,338,546
2024 3,762,000 619,455 4,381,455
2025 3,852,000 573,284 4,425,284
2026 3,943,000 526,015 4,469,015
2027-2031 21,237,000 1,879,691 23,116,691
2032-2035 18,916,000 526,302 19,442,302
Total 58,973,000$ 5,497,795$ 64,470,795$
State of M issouri Dire ct L oan Serie s 2015A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 62
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2013A outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2011A
In November 2011, the State of Missouri Direct Loan Program issued to the
District an amount totaling $39,769,300 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.5% and is payable in semiannual installments at
varying amounts through January 1, 2034.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2011A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2011A outstanding as of June 30, 2021, are as follows:
Years ending J une 3 0,Princ ipal Interest Total
2022 2,427,000$ 385,592$ 2,812,592$
2023 2,490,000 295,758 2,785,758
2024 2,555,000 274,958 2,829,958
2025 2,622,000 253,611 2,875,611
2026 2,691,000 231,707 2,922,707
2027-2031 14,540,000 809,487 15,349,487
2032-2035 11,354,000 190,933 11,544,933
Total 38,679,000$ 2,442,046$ 41,121,046$
State of M issouri Dire ct L oan Serie s 2013A
Years ending J une 3 0,Princ ipal Interest Total
2022 1,884,000$ 427,758$ 2,311,758$
2023 1,932,000 398,959 2,330,959
2024 1,982,000 369,403 2,351,403
2025 2,032,000 339,086 2,371,086
2026 2,083,000 308,010 2,391,010
2027-2031 11,242,000 1,045,448 12,287,448
2032-2034 7,456,300 200,418 7,656,718
Total 28,611,300$ 3,089,082$ 31,700,382$
State of M issouri Dire ct L oan Serie s 2011A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 63
State of Missouri Direct Loan Series 2010C
In December 2010, the State of Missouri Direct Loan Program issued to the District
an amount totaling $37,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.7% and is payable in semiannual installments at
varying amounts through January 1, 2031.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010C
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010C outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2010A
In January 2010, the State of Missouri’s Direct Loan Program -ARRA issued to
the District an amount totaling $7,980,700 for the construction, improvement,
renovation, repair, replacement and equipping of its Wastewater System, under
the authority of and in full compliance with the District’s Charter (“Plan”)and the
bonds were issued from the August 2008 authorization. T he District’s interest rate
is 1.5% and is payable in semiannual installments at varying amounts through
July 1, 2031.
Years ending J une 3 0,Princ ipal Interest Total
2022 1,890,000$ 343,172$ 2,233,172$
2023 1,939,000 311,809 2,250,809
2024 1,989,000 279,609 2,268,609
2025 2,041,000 246,576 2,287,576
2026 2,094,000 212,685 2,306,685
2027-2031 11,316,000 523,438 11,839,438
Total 21,269,000$ 1,917,289$ 23,186,289$
State of M issouri Dire ct L oan Serie s 2010C
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 64
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010A outstanding as of June 30, 2021, are as follows:
State of Missouri Direct Loan Series 2009A
In October 2009, the DNR loaned $23,000,000 to the District. The State of Missouri
Direct Loan Series 2009A note bears interest at a rate of 1.5% per annum and is
payable through January 1, 2030. The purpose of this note was to finance the
designing, constructing, improving, renovating, repairing, replacing and equipping
of new and existing sewer facilities within the District. The principal and interest
on the note are expected to be paid from future wastewater revenues and the note
was issued from the August 2008 authorization.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2009A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account.All funds have been
drawn on this loan.
Years ending J une 3 0,Princ ipal Interest Total
2022 404,600$ 67,814$ 472,414$
2023 412,900 61,799 474,699
2024 421,300 55,657 476,957
2025 429,800 49,391 479,191
2026 438,500 42,998 481,498
2027-2031 2,329,600 114,460 2,444,060
2032 246,200 1,822 248,022
Total 4,682,900$ 393,941$ 5,076,841$
State of M issouri Dire ct L oan Serie s 2010A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 65
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2009A outstanding as of June 30, 2021, are as follows:
In accordance with the Direct Loan Series 2009A, 2010A, 2010C, 2011A, 2013A,
2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and 2021B ordinances, the
District’s annual net operating revenues from wastewater activities, as defined in
the agreement, coupled with investments earnings must be at least 115% of the
current year’s principal and interest due on all bonds. At June 30, 2021 and 2020,
the District was in compliance with this covenant.
Wastewater System Cash and Investments
The following accounts have been established in accordance with bond ordinances
and financing agreements that require receipts generated from operations be
segregated and certain reserve accounts be established:
Revenue Fund
The Revenue Fund will be used for the purpose of depositing wastewater and
stormwater operating revenues, providing funds to pay for expenses related to the
operation and maintenance of the District, and fulfilling Sinking Fund
requirements in accordance with the bond ordinances.
Sinking Fund
The bond ordinances provide for deposits to and the use of monies in the Sinking
Fund to be used for the sole purpose of principal and interest payments on the
bonds. Sufficient monies shall be paid in periodic installments from the Revenue
Fund.
Debt Service Fund
The Debt Service Fund shall be used by the Trustee for the sole purpose of paying
the principal and interest on the bonds, as and when the same become due.
Years ending June 30, Principal Interest Total
2022 1,203,700$ 169,216$ 1,372,916$
2023 1,231,600 151,575 1,383,175
2024 1,260,000 133,491 1,393,491
2025 1,289,200 114,989 1,404,189
2026 1,319,000 96,059 1,415,059
2027-2030 5,588,200 186,020 5,774,220
Total 11,891,700$ 851,350$ 12,743,050$
State of Missouri Direct Loan Series 2009A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 66
Debt Service Reserve Fund
After initial deposit of the amount required pursuant to the bond ordinances and
financing agreements of the Series 2010B, 2011B, 2012A, 2012B and 2013B bonds,
monies in the Debt Service Reserve Fund shall be disbursed and expended by the
District solely for the payment of the principal and interest on the bonds and notes
to the extent of any deficiency in the Debt Service Fund for such purpose. The
District may disburse and expend monies from the Debt Service Reserve Fund for
such purpose immediately. As of June 30, 2021, and 2020, cash and investments
in the Debt Service Reserve Fund totaled $21,045,454 and $25,000,722,
respectively.
Series 2015B was issued without a debt service reserve fund requirement and at
that time $8,945,557 in excess debt service reserves along with part of the Series
2015B proceeds were used to advance refund Series 2006C and Series 2008A
bonds.
Series 2016C was issued without a debt service reserve fund requirement.
Series 2017A was issued without a debt service reserve fund requirement and at
that time $934,325 in excess debt service reserves along with part of the Series
2017A proceeds were used to partially advance refund Series 2011B, Series 2012A,
Series 2013B and Series 2015B.
Series 2018A was issued without a debt service reserve fund requirement.
Series 2019B was issued without a debt service reserve fund requirement.
Series 2019C was issued without a debt service reserve fund requirement and at
that time $26,045,142 in excess debt service reserves along with the Series 2019C
proceeds were used to partially advance refund Series 2012A, Series 2012B, Series
2013B and Series 2015B.
Series 2020B was issued without a debt service reserve fund requirement.
Series 2021C was issued without a debt service reserve fund requirement and at
that time $4,025,780 in excess debt service reserves along with the Series 2021C
proceeds were used in a current refunding of Series 2011B.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 67
Special Participant Bond Reserve Account
For the Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds, the DNR
deposited into the Special Participant Bond Reserve Account, amounts in
accordance with the bond ordinances, which shall be disbursed and expensed by
the District solely for the payment of the principal and interest on the Participant
Bonds to the extent of any deficiency in the Sinking Fund for such purpose. At
June 30, 2021 and 2020, cash and investments in the Special Participant Bond
Reserve Account held on behalf of the District totaled $58,050,189 and
$67,598,530, respectively. Monies in this account are not considered to be District
funds. However, interest earnings on this account are used by the District to
reduce interest payments on the bonds outstanding.
Renewal and Extension Fund
All sums accumulated and retained in the Renewal and Extension Fund shall be
first used to prevent default in the payment of principal and interest on the bonds
when due and shall then be applied by the District for purposes pursuant to the
trust indenture. No monies have been deposited into this account at June 30, 2021.
Project Fund
The Project Funds for all bond issuances outstanding will be used for the purpose
of providing monies to pay project costs. The proceeds from the bonds and notes,
after a deposit into the Debt Service Reserve Fund for the amounts required
pursuant to the bond ordinances and note agreements of Series 2010B, 2011B,
2012A, 2012B and 2013B bonds, shall be deposited into the Project Fund. At June
30, 2021 and 2020, cash and investments in the Project Funds totaled $92,415,533
and $60,765,125, respectively.
Rebate Fund
The bond ordinances provide for the creation of a Rebate Fund into which shall be
deposited such amounts as are required to be deposited therein pursuant to the
arbitrage instructions regarding the calculation and payment of rebate amounts
due. The District does not have any rights in or claims to such money; provided,
however, any funds remaining in the Rebate Fund after redemption and payment
of all bonds and payment of any rebatable arbitrage amount, or provision having
been made therefore, shall be remitted to the District. At June 30, 2021 and 2020,
cash and investments in the Rebate Fund totaled $228,349 and $229,909,
respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 68
Administrative Fee Fund
The Administrative Fee Fund will be used for the payment of the Trustee’s fees
and other administrative fees pursuant to the note agreement. The Trustee has
the ability to immediately withdraw the fee amounts when due. Monies held in
this account shall not be invested.
Pledged Revenues
The District pledges revenues to ensure the repayment of all outstanding revenue
bonds. These bonds’ proceeds are used for the District’s capital improvement and
replacement program and their repayment comes from, and is collateralized by,
the District’s wastewater revenues. These revenues are pledged through 2050 at
an approximate amount of $2.2 billion. The proportion of future pledged revenues
to future wastewater revenues is not estimable as annual total revenues fluctuate.
Principal and interest paid out during fiscal year 2021 was $119.3 million with
pledged revenues of $252.0 million. This provided a coverage ratio of 2.1 and
pledged revenues represented 59.0%of all net operating revenues.
Direct Borrowings and Direct Placements
The District did not have any bonds and notes from direct borrowings in the fiscal
years ending June 30, 2021 and 2020. As stated previously, the District had direct
placement bonds of $5,620,000 and $0 in the fiscal years ending June 30, 2021 and
2020, respectively. In addition, the District had no unused lines of credit and had
no assets pledged as collateral for bonds from direct placements in the fiscal years
ending June 30, 2021 and 2020.
The District has authorized the issuance of Wastewater System Senior Refunding
Revenue Bonds,Direct Placement Series 2022A,Series 2023A and Series 2025A
to be issued on May 3, 2022, May 1, 2023,and May 1, 2025, respectively.The par
amount of the bonds will total $196,445,000 and the bonds will be purchased by
Morgan Stanley Municipal Funding, Inc. pursuant to the Amended and Restated
Forward Delivery Bond Purchase Agreement dated March 23, 2020. Upon
issuance, the District plans to use the proceeds of the bonds to refund a portion of
the outstanding Wastewater System Senior Revenue Bonds Series 2012B, Series
2013B, and Series 2015B. Wastewater System Senior Refunding Revenue Bonds,
Direct Placement Series 2021A, renamed Series 2021C due to the timing of their
issuance, was included in the original authorization, and was issued on May 3,
2021,and the $5,620,000 proceeds were used to refund the outstanding
Wastewater System Senior Revenue Bonds Series 2011B. See the explanation for
Series 2021C above for further information.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 69
The Amended and Restated Forward Delivery Bond Purchase Agreement for the
Series 2022A, Series 2023A, and Series 2025A Bonds contains terms regarding
events of default between closing and settlement with finance-related
consequences that are classified as (1) an event of default under other debt
instruments, (2) repudiation of the District’s obligations under the Agreement, (3)
dissolution, (4) bankruptcy, (5) consolidation or merger into another entity
resulting in materially weaker creditworthiness, (6) misrepresentation, (7)
significant rating downgrade or rating withdrawal or (8) refusal or inability of bond
counsel to deliver an opinion that the interest on the Bonds is excludable from
gross income for federal income tax purposes under the Internal Revenue Code of
1986, as amended, and is exempt from income taxation by the State of Missouri.
Upon the occurrence of an event of default the District may be required to make a
termination payment to the purchaser of the Bonds equal to fees and expenses,
and on demand of the purchaser, a make-whole termination payment.
7.Pension Plan
General Information About the Pension Plan
Pension Plan Description. The Metropolitan St. Louis Sewer District Employees’
Pension Plan (“Pension Plan”) is a noncontributory single employer defined benefit
plan providing retirement benefits as well as death and disability benefits. As a
condition of employment, all full-time employees of the District commencing
service prior to January 1, 2011, were eligible to be covered by the Pension Plan.
As of January 1, 2011, the Pension Plan was frozen to new employees. Instead,
new employees of the District may participate in The Metropolitan St. Louis Sewer
District Defined Contribution Plan (“DC Plan”)and/or The Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust. Current employees with
less than ten years of service on January 1, 2011,could also voluntarily elect to
transfer from the Pension Plan and enter the DC Plan.
Benefits Provided. All benefits vest after five years of credited service. Members
retiring at or after age 65 with five or more years credited service are entitled to a
pension benefit. The Pension Plan permits early retirement with reduced benefits
beginning at age 55 if the member has completed five years of employment.
Ordinance No. 10664 provides for unreduced retirement benefits to any member
whose combined age and term of service is equal to 75.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 70
Effective August 1, 2004, Ordinance No. 11781 amended the Pension Plan to
change the benefit formula to 1.7% of final average earnings plus 0.4% of final
average earnings that are in excess of covered earnings multiplied by the period of
years and months of credited service not to exceed 35 years without including
accrued sick leave. For vested employees who retire or die while in active service,
sick leave is paid out at 1.25% per year of service multiplied by the amount of the
unused accrued sick leave remaining at the employee’s current rate of pay, up to a
maximum of $50,000. Also, the Pension Plan was amended to provide the retiring
member with a 10% partial lump sum payment option. The balance of the
distribution will be paid in accordance with any one of the other payment options
available under the Pension Plan.
The retirement benefit payable to a member who retires after the normal
retirement date is the greater of a) the benefit that would have been payable on
the normal retirement date plus a special annual retirement benefit provided by
the accumulated value, at 4% per annum interest, of the monthly benefit that
would have been received prior to the postponed retirement date or b) the benefit
determined as of the postponed retirement date under the normal formula.
Effective August 27, 2011, Ordinance No. 13288 amended the Pension Plan to
include the following: “Upon termination or complete discontinuance of
contributions under the Pension Plan, the rights of all Members to benefits accrued
to the date of such termination or discontinuance shall be non-forfeitable, to the
extent then funded.”
Effective September 14, 2017, Ordinance No. 14776 amended the Pension Plan to
require enrollment in Medicare Parts A and B when Members first become eligible
for such Medicare programs due to disability in order to receive, or continue to
receive, retiree medical benefits under the Pension Plan and to clarify that any
retiree medical benefits under the Pension Plan will be secondary to Medicare
disability benefits in accordance with the Medicare secondary payor rules.
Effective February 14, 2019, Ordinance No. 15110 amended the Pension Plan to
update the language of Pension Plan benefits for death of a member after
retirement and retiree medical coverage.
Amounts in participants’ accounts are distributed upon retirement, death,
disability, or termination of employment. The normal form of retirement benefit
is either a lump sum payment or equal monthly installments.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 71
The Pension Plan reports financial data on a calendar year basis and issues a
publicly available financial report that includes audited financial statements and
required supplementary information. That report is available on the District’s
website at msdprojectclear.org and may be obtained by writing: The Metropolitan
St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
Employees Covered by Benefit Terms. At December 31, 2020, and 2019, the
financial reporting period of the Pension Plan, the following employees were
covered by the benefit terms:
Required Employer Contributions. The District’s employees do not contribute to
the Pension Plan. Ordinances establishing the Pension Plan provide for
actuarially determined annual contributions, paid solely by the District, that are
sufficient to pay benefits when due. The Entry Age Normal actuarial funding
method is used to determine contributions.
Contributions of $12,771,525 and $13,062,014, excluding certain professional fees
paid by the District, were made to the Pension Plan during the District’s fiscal
years ended June 30, 2021, and 2020, respectively. These contributions were made
in accordance with actuarially determined contribution requirements based on
actuarial valuations performed at December 31, 2020, and 2019, respectively.
Net Pension Liability
The net pension liability was measured as of December 31, 2020, and 2019 and the
total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of that date.
Increase
2020 2019 (Decrease)
Active plan members 450 493 (43)
Retirees and beneficiaries currently receiving benefits 800 771 29
Terminated members entitled to receive benefits 172 180 (8)
Total 1,422 1,444 (22)
As of December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 72
Actuarial Assumptions. The total pension liability in the December 31, 2020, and
2019 actuarial valuations were determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Effective December 31, 2020, and December 31, 2019, for current employees,
healthy retirees, disabled retirees and contingent survivors, mortality rates were
based on the Pub-2010 General Amount-Weighted Mortality Tables, male and
female rates, with generational projection from 2010 using MP-2020 and MP-2019
improvement scale (improvement scale updates published annually), respectively.
The actuarial assumptions are based on prior and current year experiences.
Long-Term Expected Rate of Return. The long-term expected rate of return is
determined by adding expected inflation to expected long-term real returns and
reflecting expected volatility and correlation. The capital market assumptions at
December 31, 2020, and 2019 are as follows:
Inflation 2.50 percent
Salary Increases 4.25 percent, average, including inflation
Investment Rate of Return 6.75 percent, net of pension plan investment expense,
including inflation for years ended December 31, 2020 and 2019
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
Large Cap US Equity 25.0% 4.2%
Domestic Core Bonds 14.0% 0.1%
Core "Plus" Bonds 13.0% 0.7%
Real Estate 12.0% 2.9%
Developed International Equity 12.0% 5.0%
Small Cap US Equity 10.0% 4.7%
Global Fixed Income 8.0% 3.5%
Emerging Markets Equity 6.0% 5.2%
Total 100.0%
December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 73
Discount Rate. The discount rate used to measure the total pension liability at
December 31, 2020,and 2019, was 6.75 percent. The Pension Plan’s fiduciary net
position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of
return.
Lon g-Term
Expe cted
Arithme tic
Target Real Rate
Asset Class Allocation of Return
Domestic Fixe d Income 27.0% **
Lar ge Cap US Equity 25.0%4.2%
Develo ped Internat io nal Equit y 12.0%5.0%
Re al Estate 12.0%3.4%
Small Cap US Equit y 10.0%4.7%
Glo bal Fixe d Income 8.0%2.9%
Emerging Markets Equit y 6.0%5.6%
To tal 100.0%
** Expected to earn less than inf latio n
December 31, 2019
Increase (Decrease)
Total Pension Plan Fidu ciary Net Pension
Liability Net Position Liability
Ch ange s in Net Pension Liability (a)(b)(a) - (b)
Balanc es as of December 31, 2019 353,995,560$ 296,202,647$ 57,792,913$
Change s for the year:
Servic e cost 4,832,125 —4,832,125
Interest 23,581,022 —23,581,022
Effect of economic /demographic gains or losses (6,727,748)—(6,727,748)
Effect of assumptions changes or inputs ———
Be ne fit payme nt s (19,273,097)(19,273,097)—
Emplo yer contribut io ns —13,398,565 (13,398,565)
Net inve stment inc ome —36,584,569 (36,584,569)
Balanc es as of December 31, 2020 356,407,862$ 326,912,684$ 29,495,178$
Changes in Net Pens ion Liability for th e Year Ending December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 74
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The
following presents the net pension liability calculated using the 6.75 percent
discount rate for December 31, 2020,and December 31, 2019, as well as what the
District’s net pension liability would be if it were calculated using a discount rate
that is 1-percentage-point lower or 1-percentage-point higher than the current rate
for each year:
Pension Plan Fiduciary Net Position. Fiduciary net position is the fair value of all
plan assets. Net pension liability is the plan’s total pension liability less its
fiduciary net position, i.e., the plan’s unfunded accrued liability.
Increase (Decrease)
Total Pension Plan Fidu ciary Net Pension
Liability Net Position Liability
Ch ange s in Net Pension Liability (a)(b)(a) - (b)
Balanc es as of Decembe r 31, 2018 334,957,313$ 260,560,576$ 74,396,737$
Change s for the year:
Service cost 4,902,474 —4,902,474
Interest 22,818,417 —22,818,417
Effect of economic/demographic gains or losses (1,966,640)—(1,966,640)
Effect of assumptions change s or input s 11,910,886 —11,910,886
Be nefit payments (18,626,890)(18,626,890)—
Emplo yer contributio ns —12,725,462 (12,725,462)
Net inve stment inc ome —41,543,499 (41,543,499)
Balanc es as of Decembe r 31, 2019 353,995,560$ 296,202,647$ 57,792,913$
Changes in Net Pension Liability for the Year Ending December 31, 2019
1%Cu rrent 1%
Decrease Discou nt Rate Increase
(5.75%)(6.75%)(7.75%)
Net Pension Liabilit y 68,384,716$ 29,495,178$ (3,623,239)$
December 31, 2020
1%Cu rrent 1%
Decrease Discou nt Rate Increase
(5.75%)(6.75%)(7.75%)
Net Pension Liabilit y 97,289,377$ 57,792,913$ 24,254,799$
December 31, 2019
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 75
Pension Expense and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
For the years ended June 30, 2021,and 2020, the District recognized pension
expense of $5,192,722 and $17,831,390, respectively, after accounting for all
deferred outflows and inflows of resources. The District reported pension-related
deferred outflows of resources and deferred inflows of resources from the following
sources:
In the years ending June 30, 2021,and 2020, amounts currently reported as
deferred outflows of resources, $6,506,124 and $7,133,164, respectively, related to
the District’s contributions subsequent to the measurement date will be recognized
as a reduction of the net pension liability in the years ended June 30, 2022,and
2021, respectively.
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Payable to The Pension Plan
At June 30, 2021,and 2020, the District did not have outstanding required
contributions to the Pension Plan.
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Dif ferences between expected and actual experience —$ 5,077,158$ —$ 3,031,605$
Changes of assumptions 3,970,296 —8,540,488 —
Net difference between projected and actual earnings —17,594,240 —4,118,093
Contribut io ns made subsequent to measurement date 6,506,124 —7,133,164 —
Total 10,476,420$ 22,671,398$ 15,673,652$ 7,149,698$
June 30, 2021 June 30, 2020
Net Deferrals of
Resources
Year ended June 30,:
2022 (3,717,338)$
2023 (3,482,577)
2024 (8,132,308)
2025 (3,368,879)
(18,701,102)$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 76
8.Other Retirement Plans
Deferred Compensation Plan and Trust
The District offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust (“DF Plan”), available to all
District employees, permits them to defer a portion of their salary up to Internal
Revenue Code limits. T he District does not contribute to the DF Plan except where
mandated by the Internal Revenue Service to compensate participants for lost
deferral contributions. The deferred compensation is not available to employees
until termination, retirement, death, disability or due to financial hardship as
defined by the DF Plan.
At June 30, 2021,and 2020, the District had outstanding liabilities owed to the DF
Plan of $176,954 and $150,307, respectively.
The DF Plan was amended and restated to comply with the Economic Growth and
Tax Relief Reconciliation Act of 2001 (“Act”). The Act made significant changes to
Section 457(b) of the Internal Revenue Code of 1986, as previously amended. The
DF Plan assets are held in trust for the exclusive benefit of participants and their
beneficiaries under Section 1448 of the Small Business Job Protection Act of 1996.
As a result, the assets and liabilities of the DF Plan are not included in the
accompanying financial statements.
The Metropolitan St. Louis Sewer District Deferred Compensation Plan and Trust
issues a publicly available financial report that includes audited financial
statements and supplementary information. That report is available on the
District’s website at msdprojectclear.org and may be obtained by writing: The
Metropolitan St. Louis Sewer District, 2350 Market Street, St.Louis, MO 63103-
2555.
Defined Contribution Plan
The Metropolitan St. Louis Sewer District Defined Contribution Plan (“DC Plan”)
was established by the District’s Board of Trustees, through Ordinance 13180,
which became effective January 1, 2011. The following full time employees are
eligible to participate in the DC Plan: (i) employees first hired on or after January
1, 2011, and (ii) employees hired prior to January 1, 2011,who elected to terminate
participation in The Metropolitan St. Louis Sewer District Employees’ Pension
Plan (“Pension Plan”), effective as of April 1, 2011, in accordance with the
provisions of such Pension Plan, and (iii) employees rehired on or after January 1,
2011,who are not eligible to accrue benefits under the Pension Plan. An employee
shall become a participant in the DC Plan on the first day on which he or she
performs an hour of service for the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 77
The District’s Board of Trustees, primarily to improve benefits to members,
amends the DC Plan in all its respects. A pension committee consisting of two
members of the District’s Board of Trustees, two elected employee members and
four members of the District’s management staff administer the DC Plan. A
committee of the District’s Board of Trustees, with the aid of an investment
advisor, reviews and evaluates the DC Plan’s investment options and the related
rates of return on a periodic basis.
This DC Plan is intended to provide a means whereby the District may provide
retirement benefits to eligible employees and encourage such employees to
establish a regular method of savings, thereby providing a measure of financial
security for such employees and their beneficiaries upon retirement or in the event
of death or disability. All assets of the DC Plan are the sole property of the DC
Plan and are not subject to the claims of creditors of the District and the assets
and liabilities of the DC Plan are not included in the accompanying financial
statements.
Employer Basic Contributions: For each payroll period, the District contributes an
amount equal to 7% of the covered compensation earned during such period by
each participant entitled to an allocation of such contribution. Upon a participant’s
severance from service, the unvested amount credited to his/her individual account
shall be forfeited and credited to the Employer Basic Contributions account and
shall be used to reduce future Employer Basic Contributions. If a participant is
rehired before incurring two consecutive years break in service, the amount
previously forfeited will be restored. If rehired after two consecutive years of break
in service, the amounts previously forfeited will not be restored.
Employer Matching Contributions: For each payroll period, the District
contributes an amount equal to 50% of the covered compensation of such
participant withholding as an annual deferral (as defined in The Metropolitan
St. Louis Sewer District Deferred Compensation Plan and Trust) pursuant to The
Metropolitan St. Louis Sewer District Deferred Compensation Plan and Trust;
provided that, before-tax contributions in excess of 4% of the covered compensation
of the participant for the payroll period shall not be considered for purposes of
Employer Matching Contributions. Employer Matching Contributions shall be up
to the maximum amount of compensation that may be taken into account for the
DC Plan year and the amount credited to the participant’s Employer Matching
Contributions Account shall be fully vested at all times.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 78
In no event shall the sum of the employer contributions and employee
contributions allocated to the account of a participant for the DC Plan year exceed
the lesser of:
(a) The amount specified in the applicable Internal Revenue Code, as
adjusted annually for any applicable increases in the cost of living;
(b) 100% of the participant’s compensation for such year.
The compensation limit referred to in (b) shall not apply to any contribution from
medical benefits after separation from service.
The District’s contributions to the DC Plan amounted to $2,816,157 and $2,483,566
for the years ended June 30, 2021, and 2020, respectively. Forfeitures were
$99,855 and $61,807, for the years ended June 30, 2021, and 2020, respectively,
and the balances in the prepaid forfeitures account as of June 30, 2021, and 2020
were $6,097 and $4,073, respectively. At June 30, 2021, and 2020, the District had
outstanding liabilities owed to the DC Plan of $101,147 and $81,163, respectively.
Vesting: As of any time before the normal retirement age of a participant, the first
day of the month coinciding with or next following a person’s sixty-fifth birthday
and completion of sixty months of continuous service (other than upon death or
permanent disability), the vested percentage of the amounts credited to the
participant’s Employer Basic Contributions account shall be determined in
accordance with the following schedule:
Months Of
Continuous Service
Vested (Non-
Forfeitable)
Percentage
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The Metropolitan St. Louis Sewer District Defined Contribution Plan issues a
publicly available financial report that includes audited financial statements and
supplementary information. That report is available on the District’s website at
msdprojectclear.org and may be obtained by writing: The Metropolitan St. Louis
Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 79
9. Postemployment Benefits Other Than Pensions (“OPEB”)
General Information About The OPEB Plan
Plan Description. The District’s defined benefit OPEB plan, The Metropolitan St.
Louis Sewer District Retiree Medical Coverage Plan (“OPEB Plan”), provides
retiree medical coverage for all permanent full-time employees who retire from the
District on or after age 62 with five years of service or whose age plus years of
service equal 75 points (“Rule of 75”) as part of a total compensation package
effective August 1, 2004 for general employees and, with respect for union
members, the later of August 1, 2004 or the date of union ratification of a
Memorandum of Understanding with respect to this Plan modification. The OPEB
Plan is a single employer defined benefit OPEB plan administered by the District.
The OPEB Plan was established by Ordinance No. 9826 and became effective
January 1, 1996. This ordinance has been repealed and new ordinances enacted
in lieu thereof with Ordinance No. 15109 covering defined contribution retirees
and Ordinance No. 15110 covering defined benefit retirees, both of which were
adopted on February 14, 2019, being the most current ordinances covering the
OPEB Plan in its entirety. The District offers two medical plan options, a
traditional open access plan and a high deductible health plan, and both plans offer
wellness rates for those employees who qualify. No assets are accumulated in a
trust that meets the criteria in paragraph 4 of GASB Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pension (“GASB
Statement No. 75”).
Benefits Provided. The OPEB Plan provides healthcare for qualified retirees and
their dependents. The District pays the same amount of the monthly group health
insurance premium for the qualified retiree as it would for an active single
employee until the retiree becomes eligible for Medicare at age 65.
In the last six months of fiscal year 2021 the monthly amount the District paid
towards the retiree’s premium was $610.52 for retirees qualifying for the wellness
incentive ($621.36 for retirees with wellness qualified spouse). The $610.52 paid
by the District equates to 86% of the traditional plan’s premium and 93% of the
high deductible plan’s premium. For retirees not qualifying for the wellness
incentive, the District paid $567.19 of the premium which equates to 80% for the
traditional plan and 86% for the high deductible plan. The retiree paid 100% of the
spousal, children or family premium incremental increases in addition to the
remaining 7-20% of the retiree’s total monthly premium. The OPEB Plan also
provided life insurance coverage for a very small closed group of disabled former
employees.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 80
The monthly premiums for calendar year 2021 plans and coverage tiers are as
follows:
In fiscal year 2020, and in the first six months of fiscal year 2021,the monthly
amount the District paid towards the retiree’s premium was $580.25 for retirees
qualifying for the wellness incentive. The $580.25 paid by the District equates to
85% of the traditional plan’s premium and 91% of the high deductible plan’s
premium. For retirees not qualifying for the wellness incentive, the District paid
$547.75 of the premium which equates to 80% for the traditional plan and 86% for
the high deductible plan. The retiree paid 100% of the spousal, children or family
premium incremental increases in addition to the remaining 9-20% of the retiree’s
total monthly premium. The OPEB Plan also provided life insurance coverage for
a very small closed group of disabled former employees.
Total Retiree OPEB Benefit Net Cos t
Coverage Tier Premium Paid by Dis trict to Retiree
Tr ad itio nal Plan wi th wellne ss inc entive
Retiree 708.99$ 610.52$ 98.47$
Retiree + Spouse 1,510.35 621.36 888.99
Retiree + Child (ren)1,372.31 610.52 761.79
Retiree + Family 2,093.26 621.36 1,471.90
Tr ad itio nal Plan wi th no wellne ss inc entive
Retiree 708.99 567.19 141.80
Retiree + Spouse 1,510.35 567.19 943.16
Retiree + Child (ren)1,372.31 567.19 805.12
Retiree + Family 2,093.26 567.19 1,526.07
High Deductible Plan with wellne ss inc entive
Retiree 659.68 610.52 49.16
Retiree + Spouse 1,405.26 621.36 783.90
Retiree + Child (ren)1,276.83 610.52 666.31
Retiree + Family 1,947.61 621.36 1,326.25
High Deductible Plan with no we llne ss inc entive
Retiree 659.68 567.19 92.49
Retiree + Spouse 1,405.26 567.19 838.07
Retiree + Child (ren)1,276.83 567.19 709.64
Retiree + Family 1,947.61 567.19 1,380.42
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 81
The monthly premiums for calendar year 2020 plans and coverage tiers are as
follows:
The ordinance establishing the OPEB Plan assigned the authority to establish and
amend Plan benefit provisions to the District. The contribution requirements of
the District and Plan members are established by the District and may be amended
by the District. The OPEB Plan does not issue a publicly available report.
Employees Covered by Benefit Terms. At June 30, 2021 and 2020, the following
employees were covered by the benefit terms:
Total Retiree OPEB Benefit Net Cost
Coverage Tier Premium Paid by District to Retiree
Tr aditional Plan wi th wellne ss ince ntive
Retiree 684.69$ 580.25$ 104.44$
Retiree + Spouse 1,458.58 580.25 878.33
Retiree + Child(ren)1,325.27 580.25 745.02
Retiree + Family 2,021.51 580.25 1,441.26
Tr aditional Plan wi th no wellness inc entive
Retiree 684.69 547.75 136.94
Retiree + Spouse 1,458.58 547.75 910.83
Retiree + Child(ren)1,325.27 547.75 777.52
Retiree + Family 2,021.51 547.75 1,473.76
High De ductible Plan wi th wellness incentive
Retiree 637.05 580.25 56.80
Retiree + Spouse 1,357.08 580.25 776.83
Retiree + Child(ren)1,233.05 580.25 652.80
Retiree + Family 1,880.84 580.25 1,300.59
High De ductible Plan wi th no wellne ss inc entive
Retiree 637.05 547.75 89.30
Retiree + Spouse 1,357.08 547.75 809.33
Retiree + Child(ren)1,233.05 547.75 685.30
Retiree + Family 1,880.84 547.75 1,333.09
Ju ne 30, 2021 Ju ne 30, 2020
Inactive employees or ben eficiaries currently receiving benefit paym en ts 117 122
Ac tive employees 956 955
Tot al 1,073 1,077
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 82
Total OPEB Liability
The District’s total OPEB liability measured as of December 31, 2020,and
December 31, 2019,was $24,920,628 and $23,164,618, respectively. The District’s
total OPEB liabilities for both years were determined based on an actuarial
valuation as of June 30, 2019,and both were calculated based on the discount rates
and actuarial assumptions below and were then projected forward to the
measurement dates. There have been no significant changes between the
valuation date of June 30, 2019,and the reporting fiscal year end dates of June 30,
2021,and June 30, 2020.
Actuarial Assumptions and Other Inputs. The total OPEB liabilities based on the
June 30, 2019 actuarial valuation were determined using the following actuarial
assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
The discount rate was based on the 20 Year Bond General Obligation Index.
Mortality rates were based on the Pub-2010 General Amount-Weighted Mortality
Tables for Employees, Healthy Retirees, Disabled Retirees and Contingent
Survivors, male and female rates, with generational projection from 2010 using
the MP-2020 scale for the measurement date of December 31, 2020,and using the
MP-2019 scale for the measurement date of December 31, 2019.
The actuarial assumptions are based on prior and current year experiences. The
plan has not had a formal actuarial experience study performed.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 83
Changes in the Total OPEB Liability
The plan change reflected in the calculation of the December 31, 2019 total OPEB
liability is due to providing a $5,000 death benefit to defined contribution retirees.
For defined benefit retirees, this benefit is paid by the Pension Plan.
Likewise, the economic/demographic gains reflected in the calculation of the
December 31, 2019,total OPEB liability are due to the repeal of the Affordable
Care Act excise tax for high cost health plans and removal of the Health Insurer
Fee beginning in 2021, both resulting from the Further Consolidated
Appropriations Act, 2020 which became law on December 20, 2019,and a large
experience gain primarily due to medical claims and premiums staying relatively
level since the June 30, 2017 valuation.
Changes of assumptions or other inputs reflect a change in the discount rate from
2.74 percent in 2019 to 2.12 percent in 2020 and from 4.10 percent in 2018 to 2.74
percent in 2019 and the change in mortality assumptions referenced above.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 84
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The
following presents the total OPEB liability of the District as of December 31, 2020,
calculated using the discount rate of 2.12%, as well as what the District’s total
OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (1.12%) or 1-percentage-point higher (3.12%) than the
current discount rate.
The following presents the total OPEB liability of the District as of December 31,
2019, calculated using the discount rate of 2.74%, as well as what the District’s
total OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (1.74%) or 1-percentage-point higher (3.74%) than the
current discount rate.
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend
Rates. The following presents the total OPEB liability of the District as of
December 31, 2020, calculated using the current range of healthcare cost trend
rates,as well as what the District’s total OPEB liability would be if it were
calculated using the range of healthcare cost trend rates that were 1-percentage-
point lower (3.90% decreasing to 2.70%) or 1-percentage-point higher (5.90%
decreasing to 4.70%) than the current range of healthcare cost trend rates of 4.90%
decreasing to 3.70%.
Current
Healthcare
Cos t Trend
1% Decrease Rates 1% Increa se
(3.90% (4.90% (5.90%
decreasing decreasing decreasing
to 2.70%)to 3.70%)to 4.70%)
Total OPEB Liability 22,177,915$ 24,920,628$ 28,178,622$
December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 85
The following presents the total OPEB liability of the District as of December 31,
2019, calculated using the current range of healthcare cost trend rates,as well as
what the District’s total OPEB liability would be if it were calculated using the
range of healthcare cost trend rates that were 1-percentage-point lower (5.40%
decreasing to 2.70%) or 1-percentage-point higher (7.40% decreasing to 4.70%)
than the current range of healthcare cost trend rates of 6.40% decreasing to 3.70%.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to OPEB
For the years ended June 30, 2021 and 2020, the District recognized OPEB expense
of $2,343,501 and $2,266,677,respectively. A t June 30, 2021 and 2020, the District
reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
In the years ending June 30, 2021 and 2020, amounts currently reported as
deferred outflows of resources, $862,060 and $769,270, respectively, related to the
District’s benefit payments subsequent to the measurement date will be recognized
as a reduction of the total OPEB liability in the years ended June 30, 2022 and
2021, respectively.
Current
Healthcare
Cos t Trend
1% Decrease Rates 1% Increa se
(5.40% (6.40% (7.40%
decreasing decreasing decreasing
to 2.70%)to 3.70%)to 4.70%)
Total OPEB Liability 20,892,086$ 23,164,618$ 25,844,165$
December 31, 2019
Deferred Deferred Deferred Defer red
Outflows of In flows of Outflows of In flows of
Resources Resources Resources Resources
Differences between expected and actual experience —$ 3,201,103$ —$ 3,543,833$
Changes of assumptions or other inputs 2,674,856 686,982 2,073,599 786,834
Benefit paym ents made subsequent to measurement date 862,060 — 769,270 —
Total 3,536,916$ 3,888,085$ 2,842,869$ 4,330,667$
June 30, 2021 June 30, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 86
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
10.Self-Insurance Programs
The District is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The District has established a risk management program and retains
the risk related to its obligation to provide workers' compensation and medical and
hospitalization benefits to its employees; and to pay water backup claims to its
customers. The estimated liabilities for payment of incurred (both reported and
unreported) but unpaid claims relating to these matters are included as a
component of current deposits and accrued expenses, and as such,are expected to
be paid within one year of the date of the Statement of Net Position. At June 30,
2021 and 2020, these liabilities amounted to $5,148,770 and $4,755,168,
respectively.
The claims liabilities reported are based on the requirements of GASB Statement
No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if
information obtained prior to the issuance of the financial statements indicates it
is probable that a liability has been incurred and the amount of the liability can be
reasonably estimated. Changes in the balance of claims liabilities during fiscal
2021, 2020,and 2019 were as follows:
2021 2020 2019
Liability - Beginning of Year 4,755,168$ 7,920,684$ 4,026,003$
Cu rrent year claims and changes in estimates 17,588,499 18,916,140 19,320,396
Cl aim paymen ts (17,194,897)(22,081,656)(15,425,715)
Liability - End of Year 5,148,770$ 4,755,168$ 7,920,684$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 87
The District obtains periodic funding valuations from the third-party
administrators managing the self-insurance programs and adjusts the charges as
required to maintain the appropriate level of estimated claims liability. The
District also maintains excess liability insurance coverage for workers'
compensation and medical and hospitalization claims; general liability; and water
backup damage to customers’ property.
The District purchases commercial insurance for all other risks of loss. Settled
claims have not exceeded this commercial coverage in any of the past three years.
11.Closure and Post-Closure Care Costs
State and federal laws and regulations require the District to place a final cover
on its Prospect Hill Reclamation Project landfill site when it stops accepting waste
and to perform certain maintenance and monitoring functions at the site for 30
years after closure. Although closure and post-closure care costs will be paid only
near or after the date that the landfill stops accepting waste, the District reports
a portion of these closure and post-closure care costs as an operating expense in
each fiscal year. The $686,968 and $622,913 reported as landfill closure and post-
closure care liabilities at June 30, 2021 and 2020, respectively, represent the
cumulative amounts reported at fiscal year-end and represent 75.5%and 71.2%of
the estimated closure and post-closure care costs of the landfill for fiscal years
ended June 30, 2021 and 2020, respectively, and the financial assurance
requirements will be paid from unrestricted net position. T hese amounts are based
on what it would cost to perform all closure and post-closure care in 2021 and 2020,
respectively.
The remaining disposal life estimate was calculated in 2009 and was estimated at
eight years factoring in a future annual average disposal rate of 96,500 cubic yards.
It was noted in the 2009 Black and Veatch study that this life could be extended
further if the actual disposal rate is less than projected or alternative uses and off-
site beneficial options for the incinerator ash are later developed. Since the actual
average disposal rate has been less than 96,500 cubic yards, the landfill is not at
capacity and MSD expects the landfill to be in use for another 8-11 years and the
total capacity of the landfill and the available space as of 2017 was adjusted in
2017. In addition, a new survey of the landfill was performed in December of 2017
which increased the remaining capacity due to settlement and minor vehicle
compaction. The District will continue to accrue annually the remaining $222,963
and $251,537 of estimated cost of closure and post-closure care as of June 30, 2021
and 2020, respectively, based on capacity used in future years. The landfill
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 88
capacity used to date for fiscal years ended June 30, 2021 and 2020 are 75.5% and
71.2%, respectively.
The District is required to demonstrate that it has the financial capability to close
the landfill to the State of Missouri through the use of a financial test as specified
in 10 CSR 80-2.030(4)(D)6 of the Missouri Solid Waste Management Rules. The
District has complied with the State’s requirement. The District recognizes that
estimates of closure costs may change as a result of inflation, deflation, and/or
changes in technology and applicable laws and regulations. If closure cost
estimates change, the liability currently reported on the Statements of Net
Position will be adjusted accordingly.
12.Commitments And Contingencies
United States And State Of Missouri V. Metropolitan St. Louis Sewer
District; In The United States District Court For The Eastern District Of
Missouri; Case No. 07-1120.
On April 27, 2012, the Court entered the consent decree (“CD”) involving the
Environmental Protection Agency, Missouri Department of Natural Resources,
Missouri Coalition for the Environment and The Metropolitan St. Louis Sewer
District (“MSD”). At the time the District entered into the CD, the CD required the
District to spend approximately $4.7 billion, in 2010 dollars, over a 23-year
implementation period. Throughout this period improvements will be made to the
District’s separate sewer system,combined sewer system, and wastewater
treatment plants. On June 1, 2011, the State of Missouri approved Chapter 11,
Chapter 12, and Appendix Q of the District’s Combined Sewer Overflow Long-Term
Control Plan Updated Report, dated February 2011.
On June 22, 2018, a United States District Judge approved an amendment to the
CD to extend it by five years from a 23-year program to a 28-year program. The
amount the District is required to spend in 2018 dollars pursuant to the CD is $6
billion. Recent regulatory changes have compelled MSD to accelerate certain non-
consent decree work. This amendment will allow MSD to meet these new
regulatory requirements in a fiscally responsible way while better controlling rate
increases over the coming years. The District continues to comply with the CD.
Other Commitments and Contingencies
The District is a defendant in various other matters of litigation. Of these matters,
management and District’s legal counsel do not anticipate any material effect on
the June 30, 2021 and 2020 financial statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 89
The District has entered into construction and other contracts amounting to
approximately $470,000,000 and $521,000,000 at June 30, 2021 and 2020,
respectively, and through the respective audit report date. The District had
$853,126,796 and $598,428,796 in revenue bonds authorized by the voters but
unissued as of June 30, 2021 and 2020, respectively. The voters authorized an
additional $500,000,000 in revenue bonds in April 2021 and like the four preceding
authorizations, these funds were sought to enable the District to comply with
federal and state clean water requirements.
13.Restricted Net Position
The Statements of Net Position report $97,919,614 and $97,034,022 of restricted
net position at June 30, 2021 and 2020, respectively, of which $68,212,821 and
$63,177,454 are restricted due to enabling legislation, as of June 30, 2021 and
2020, respectively.
14.Segment Information
The District issued wastewater revenue bonds to finance wastewater
infrastructure projects. T he District accounts for both wastewater and stormwater
activities in a single enterprise fund, but investors in those bonds rely solely on the
revenue generated by the wastewater activities for repayment. Fiscal year 2021
and 2020 summary financial information for each business segment is presented
below.
A segment is an identifiable activity reported as a stand-alone entity for which one
or more revenue bonds are outstanding. A segment has a specifically identifiable
revenue stream pledged in support of the revenue bonds and has related expenses,
gains and losses and assets, deferred outflows,liabilities and deferred inflows that
are required by external parties to be accounted for separately. The wastewater
system is the only reportable segment that meets the requirements of GASB
Statement No. 34, Basic Financial Statements -and Management’s Discussion and
Analysis -for State and Local Governments. The stormwater system is reported
on for informational purposes only.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 90
Financial information as of and for the years ended June 30, 2021 and 2020 of the
District’s Wastewater Segment is as follows:
2021 2020
Assets
Cu rrent As sets
Un restricted Cu rrent As sets
Cash and cash equivalents 88,014,051$ 65,310,175$
In vestme nts 201,964,355 251,848,341
Se wer se rvice charges re ceivable, less allo wance of
$70,561,791 in 2021 and $65,949,200 in 2020 66,333,963 67,437,606
Unbille d se wer service charges receivable 34,970,247 33,342,430
Accrued income on in vestments 1,386,438 1,826,954
O th er receivables, less allo wance of $60,373 in 2021
and $58,209 in 2020 2,340,234 5,168,412
Supplie s inventory 8,475,419 8,013,597
Total Un restricted Cu rrent Assets 403,484,707 432,947,515
Restricted Cu rrent As sets
O th er receivables 43,590 48,273
Total Res tricted Cu rrent Assets 43,590 48,273
Total Current Assets 403,528,297 432,995,788
No n-Cu rrent As sets
Restricted As sets
Cash and cash equivalents 20,680,722 22,700,689
In vestments 110,366,490 75,085,334
Lo ng-term in vestments 5,996,719 10,850,625
Pr operty taxes re ceivable (17,971)(17,972)
Accrued in co me on investments (120,562)8,088
Total Restricted Non-Current Assets 136,905,398 108,626,764
Other As sets
Notes receivable 9,694,702 10,410,729
Lo ng-term in vestments 189,961,198 150,664,647
Total Other As sets 199,655,900 161,075,376
Capital As sets
Depreciable:
Treatment and dispo sal plan t and e quipment 1,303,648,712 1,289,884,442
Co lle ction and pumpin g plant 2,411,802,786 2,308,600,323
G eneral plant and e quipm ent 86,303,314 84,157,157
3,801,754,812 3,682,641,922
Less: Accumulate d de pre ciation 1,459,412,219 1,382,418,916
Net de pre ciable assets 2,342,342,593 2,300,223,006
Non-depreciable:
Land 71,102,122 70,404,826
Co nstruction in progress 1,163,985,241 981,883,959
Net Capital Assets 3,577,429,956 3,352,511,791
Total Non-Current As sets 3,913,991,254 3,622,213,931
Total As sets 4,317,519,551 4,055,209,719
Deferred Ou tflows of Resources :
Bo nds and notes payable-Deferred loss on refundin g 5,469,323 5,888,796
Pensio n-relate d o utflows 9,199,570 13,677,832
O PEB-re late d o utflows 3,049,400 2,451,365
Total Defer red Outflows of Res ources 17,718,293 22,017,993
WASTEWATER SEGMENT
STATEM ENTS OF NET POSITION
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 91
2021 2020
Li abilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 40,758,309$ 36,287,980$
Deposits and accrued expenses 33,961,774 32,216,981
Retainage payable 20,326,492 16,728,922
Current por tion of bonds and notes payable 61,157,300 56,629,100
Total Current Liabilities-Payable From Unrestricted Assets 156,203,875 141,862,983
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 510 —
Total Current Liabilities-Payable From Restricted Assets 510 —
Total Current Liabilities 156,204,385 141,862,983
Non-Current Liabilities
Deposits and accrued expenses 9,202,567 7,559,792
Net pension liability 24,550,973 48,934,083
Total OPEB liability 21,498,182 19,985,093
Bonds and notes payable 1,768,769,051 1,633,705,811
Total Non-Current Liabilities 1,824,020,773 1,710,184,779
Total Liab ilities 1,980,225,158 1,852,047,762
Deferred Infl ows of Resources :
Bon ds and Notes payable - Defer red gain on refunding 2,793,162 1,393,209
Pension-related inflows 20,238,170 6,863,696
OPEB-r elated inflows 3,328,967 3,710,324
Total Deferred In flows of Resources 26,360,299 11,967,229
Net Position
Net investment in capital assets 1,799,548,193 1,690,960,722
Restricted for:
Debt service 29,706,793 33,856,568
Subdistrict construction and improvement 1,957,758 1,965,621
Unrestricted 497,439,643 486,429,810
Total Net Position 2,328,652,387$ 2,213,212,721$
June 30,
WASTEW ATER SEGMENT
STATEMEN TS OF NET POSITION (Continued)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 92
2021 2020
Operating Revenues
Sewer service charges 425,250,174$ 430,399,893$
Recovery of (provision for) doubtful sewer service charge accounts (5,353,771) (5,623,090)
Licenses, per mits, and other fees 3,753,797 3,012,368
Other 3,495,172 10,192,865
Total Operating Revenues 427,145,372 437,982,036
Operating Exp enses
Pumping and treatment 64,475,064 62,030,454
Collection system maintenance 35,006,085 34,416,498
Engineer ing 902,282 937,892
General and adm inistrative 55,337,571 64,650,994
Water backup claims 3,984,849 4,653,281
Depr ec iation 80,604,140 77,279,885
Asset management 15,141,153 13,998,739
Total Operating Exp ens es 255,451,144 257,967,743
Operating Income 171,694,228 180,014,293
Non-Operating Revenues
Property taxes levied by the District — 47
Investment income 1,304,545 14,210,947
Rent and other income 323,662 301,631
Total Non-Operating Revenues 1,628,207 14,512,625
Non-Operating Exp enses
Net loss on disposal and sale of capital assets 608,073 781,346
Non-recurring projects and studies 10,555,396 8,887,933
Interest expen se 56,615,868 36,119,362
Total Non-Operating Exp enses 67,779,337 45,788,641
Income Before Capital Grants And Contributions 105,543,098 148,738,277
Capital Grants And Contributions
Capital assets contributed 8,608,123 3,081,055
Grant revenue 1,288,445 (101,054)
Total Capital Grants And Contributions 9,896,568 2,980,001
Change In Net Position 115,439,666 151,718,278
Net Position - Begi nning Of Year 2,213,212,721 2,061,494,443
Net Position - End Of Year 2,328,652,387$ 2,213,212,721$
WASTEW ATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIO N
For The Yea rs
En ded June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 93
2021 2020
Cash Flows From Operating Activities
Received from customers 427,556,320$ 427,486,543$
Paid to employees for services (105,930,520) (104,218,386)
Paid to suppliers for goods and services (83,426,791) (77,443,593)
Net Cash Provided By Operating Activities 238,199,009 245,824,564
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 4,032 37,227
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 3,067,953 1,099,045
Proceeds from issuance of debt 172,012,156 97,928,346
Premium on sale of bonds 37,194,202 12,059,976
Principal paid on debt (62,599,880) (52,603,763)
Interest and fees paid on debt (62,785,704) (88,951,050)
Payments for capital assets (290,256,122) (265,681,966)
Proceeds from sale of capital assets 158,652 83,130
Proceeds from note receivable for other organization's contribution to — —
construction of treatment plant 1,154,696 1,154,696
Proceeds from insurance on destroyed capital assets 1,088,835 —
Build America Bond tax credit 1,642,857 1,636,759
Net Cash (Used In) Capital And Related Financing Activities (199,322,355) (293,274,827)
Cash Flows From Investing Activities
Purchase of investments (557,806,139) (526,749,101)
Proceeds from sale and maturity of investments 530,033,856 600,558,868
Investment income 9,337,384 9,727,441
Proceeds from rents 238,122 241,167
Net Cash (Used In) Provided By Investing Activities (18,196,777) 83,778,375
Net Increase In Cash And Cash Equivalents 20,683,909 36,365,339
Cash And Cash Equivalents At Beginning Of Year 88,010,864 51,645,525
Cash And Cash Equivalents At End Of Year 108,694,773$ 88,010,864$
Ended June 30,
WASTEWATER SEGMENT
STATEMENTS OF CASH FLOWS
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 94
Financial information as of and for the years ended June 30, 2021 and 2020 of the
District’s Stormwater Segment is as follows:
2021 2020
Assets
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 3,323,792$ 2,492,697$
Investments 8,976,389 12,474,187
Sewer service charges receivable, less allowance of
$104,297 in 2021 and $111,954 in 2020 53,337 60,927
Proper ty taxes receivable, les s allowance of $7,430 in 2021
and $8,604 in 2020 363,496 421,059
Accrued income on investments 48,449 64,080
Total Unrestricted Current Assets 12,765,463 15,512,950
Restricted Current Assets
Cash and cash equivalents 4,629,689 3,580,818
Investments 12,587,475 17,921,368
Total Restricted Current Assets 17,217,164 21,502,186
Total Current Assets 29,982,627 37,015,136
Non-Current Assets
Restricted Assets
Cash and cash equivalents 5,616,581 3,040,332
Investments 15,270,584 15,216,125
Long-term investments 26,202,398 19,832,238
Property taxes receivable, less allowance of $36,447 in 2021
and $29,497 in 2020 1,768,587 1,407,947
Ac crued income on investments 289,739 367,588
Total Restricted Non-Current Assets 49,147,889 39,864,230
Other Assets
Long-term investments 8,442,904 7,465,594
Total Other Assets 8,442,904 7,465,594
Capital Assets
Deprec iable:
Collection and pumping plant 681,265,978 665,941,716
General plant and equipm ent 17,213,330 16,792,580
698,479,308 682,734,296
Less: Accumulated depr eciation 236,082,317 226,327,691
Net depr ec iable assets 462,396,991 456,406,605
Non-depr ec iable:
Land 8,467,188 7,928,803
Construction in progress 30,048,200 31,041,970
Net Capital Assets 500,912,379 495,377,378
Total Non-Current Assets 558,503,172 542,707,202
Total Assets 588,485,799 579,722,338
Defer red Out flows of Resources :
Pension-related outflows 1,276,850 1,995,820
OPEB-related outflows 487,516 391,504
Total Deferred Outflows of Resources 1,764,366 2,387,324
STORMWATER SEGMENT
STATEMENTS OF NET POSITION
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 95
2021 2020
Li abilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 39,113$ 29,732$
Deposits and accrued expenses 8,314,797 9,955,546
Retainage payable — 7,262
Total Current Liab ilities-Payable From Unrestricted Assets 8,353,910 9,992,540
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 701,665 912,704
Retainage payable 561,310 843,548
Total Current Liab ilities-Payable From Restricted Assets 1,262,975 1,756,252
Total Current Liab ilities 9,616,885 11,748,792
Non-Current Liabilities
Net pension liability 4,944,205 8,858,830
Total OPEB liability 3,422,446 3,179,525
Total Non-Current Liabilities 8,366,651 12,038,355
Total Liabilit ies 17,983,536 23,787,147
Defer red Inflows of Resources :
Pension-r elated inflows 2,433,228 286,002
OPEB-r el ated inflows 559,118 620,343
Total Deferred Inflows of Resources 2,992,346 906,345
Net Position
Net investment in capital assets 499,759,396 493,775,710
Res tricted for:
Subdistrict construction and im provement 66,255,063 61,211,833
Unrestricted 3,259,824 2,428,627
Total Net Position 569,274,283$ 557,416,170$
June 30,
STORMWATER SEGMENT
STATEM EN TS OF NET POSITION (Con tinued)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 96
2021 2020
Operating Revenues
Sewer service charges (2,391)$ (1,801)$
Rec over y of (provision for)doubtful sewer service charge accounts 6,352 11,541
Other 2,229 263
Total Operating Revenues 6,190 10,003
Operating Exp en ses
Collection system maintenance 13,106,911 13,235,760
En gineer ing 10,598,514 10,690,194
Gener al and administrative (326,038)1,295,690
Depr ec iation 10,748,129 10,353,427
Asset managem ent 882,830 3,196,582
To tal Operating Exp en ses 35,010,346 38,771,653
Operating (Loss)(35,004,156)(38,761,650)
Non-Operating Revenues
Property taxes levied by the District 43,624,302 35,439,394
Investment income 87,733 2,048,235
To tal Non-Operating Revenues 43,712,035 37,487,629
Non-Operating Exp enses
Net loss on disposal and sale of capital assets 382,035 180,130
Non-recurring projects and studies 1,272,327 3,570,298
Total Non-Operating Exp enses 1,654,362 3,750,428
In come (Loss)Before Capital Contributions 7,053,517 (5,024,449)
Capital Contributions
Capital assets contributed 4,334,972 3,410,906
Grant revenue 469,624 —
To tal Capital Contributions 4,804,596 3,410,906
Change In Net Position 11,858,113 (1,613,543)
Net Position - Beginning Of Year 557,416,170 559,029,713
Net Position - En d Of Year 569,274,283$ 557,416,170$
STORMWATER SEGMENT
STATEM EN TS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 97
2021 2020
Cash Flows From Operating Activities
Rec eived from customers (1,627,308)$ 1,717,045$
Paid to suppl ier s for goods and ser vices (25,897,686) (30,571,361)
Net Cash (Us ed In ) Operating Activities (27,524,994) (28,854,316)
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 42,684,514 34,946,298
Cash Flows From Capital And Related Fi nancing Activities
Proceeds from capi tal grants 469,624 —
Paymen ts for capi tal assets (12,783,904) (12,108,973)
Proceeds from sale of capital assets —22,098
Net Cash (Us ed In ) Capital And Related Fi nancing Activities (12,314,280) (12,086,875)
Cash Flows From Investing Activities
Purchase of investments (75,869,353) (66,407,633)
Proceeds from sale and maturity of investments 76,520,644 75,139,517
Investment income 959,684 1,268,317
Net Cash Provided By Investing Act ivities 1,610,975 10,000,201
Net Increase In Cash And Cash Equi valents 4,456,215 4,005,308
Cash And Cash Equivalent s At Begi nning Of Yea r 9,113,847 5,108,539
Cash And Cash Equivalent s At End Of Year 13,570,062$ 9,113,847$
En ded June 30,
STORMWATER SEGMENT
STATEMENTS OF CASH FLO WS
For The Yea rs
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 98
15.Tax Abatements
Tax abatements, as defined by Governmental Accounting Standards Board
(“GASB”) Statement No. 77, Tax Abatement Disclosures (“GASB Statement No.
77”), are agreements between a government and an individual or entity in which
the government promises to forgo tax revenues and the individual or entity
promises to subsequently take a specific action that contributes to economic
development or otherwise benefits the government or its citizens. This Statement
requires disclosure of tax abatement information about (1) a reporting
government’s own tax abatement agreements and (2) those that are entered into
by other governments and that reduce the reporting government’s tax revenues.
Since the District does not and has not entered into tax abatement agreements
directly with any individuals or entities, the following estimates are from tax
abatements entered into by other governments, specifically the county and
municipalities within the District’s boundary, that have reduced the District’s tax
revenues.
Tax Abatements entered into by St. Louis County and Cities located in St. Louis
County
The District’s property tax revenues were reduced through four programs that are
utilized by cities located in St. Louis County and the County itself. Summaries of
these four programs are as follows:
Enhanced Enterprise Zone: provides real property tax abatements to new or
expanding businesses in certain specified geographic areas designated by
local governments and certified by the Missouri Department of Economic
Development.
Industrial Development Bonds: finances industrial development projects for
private corporations, partnerships and individuals.
Land Clearance for Redevelopment Authority: assists with the
redevelopment of blighted or insanitary areas for residential, recreational,
commercial, industrial or public uses.
Urban Redevelopment Corporations:provides real property tax abatements
to encourage the redevelopment of blighted areas by an eligible city or
county.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 99
The amount of the District’s tax revenues that were abated by the county and cities
initiating the programs are reported in the following tables.
Land
Enhanced Industrial Clearance for Urban
St. Louis County Enterprise Developm ent Redevelopment Redevelopment Total Tax
or City Zones Bonds Authority Corporation s Abate me nts
St Louis County —$188,439$—$13,375$201,814$
Bellerive —3,239 ——3,239
Berkeley 692 ———692
Brentwood ———17,459 17,459
Bridgeton —549 —5,934 6,483
Clayton —38,950 —3,844 42,794
Edmundson ———23,493 23,493
Eureka —309 ——309
Ferguson —6,357 —1,047 7,404
Frontenac ———8,780 8,780
Hazelwood 8,287 39,089 —99,767 147,143
Kinloch ———45,862 45,862
Je nnings —151 ——151
Map lewood ———13,617 13,617
Maryland Heights —404 —7,406 7,810
Normand y ———3,025 3,025
Olivette ———2,566 2,566
Ove rland ———9,067 9,067
Richmond Heights ———18,263 18,263
Rock Hill ———2,749 2,749
St . Ann —700 ——700
Su nset Hills ———495 495
University City ——10,276 —10,276
Wellston ———713 713
Woodson Terrace ———199 199
Total Tax Abatements 8,979$278,187$10,276$277,661$575,103$
For the Year Ended June 30, 2021
Land
Enhanced Industrial Clearance for Urban
St. Louis County Enterprise Developm ent Redevelopment Redevelopment Total Tax
or City Zones Bonds Authority Corporations Abatements
St Louis County —$155,197$—$3,545$158,742$
Bellerive —1,898 ——1,898
Berkeley 398 ———398
Brentwood ———10,770 10,770
Bridgeton —718 —3,627 4,345
Clayton —21,357 —2,352 23,709
Edmundson ———9,723 9,723
Eureka —320 ——320
Ferguson —3,756 —614 4,370
Hazelwood 4,848 24,107 —72,066 101,021
Kinloch ———26,858 26,858
Je nnings —153 ——153
Map lewood ———7,092 7,092
Maryland Heights —406 —7,470 7,876
Normand y ———3,022 3,022
Ove rland ———5,165 5,165
Richmond Heights ———11,463 11,463
Rock Hill ———3,219 3,219
Su nset Hills ———494 494
University City ——5,397 216 5,613
Wellston ———551 551
Total Tax Abatements 5,246$207,912$5,397$168,247$386,802$
For the Year Ended June 30, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 100
Tax Abatements entered into by St. Louis City
The City of St. Louis offers a real estate tax abatement program as a development
tool designed to assist developers, businesses and individuals with renovation and
new construction projects. The tax abatement freezes the tax assessment in
improvements to property at the pre-development level. To be eligible for tax
abatement, a significant investment must be made in the property; generally
either new construction on vacant land or gut rehabilitation of an existing building.
The application must be made before construction begins and the usual term for
tax abatement is five to ten years.
The amount of the District’s tax revenues calculated at the District’s tax rates of
$.1078 and $.1077 per $100 of assessed value for fiscal 2021 and 2020, respectively,
that were abated by St. Louis City are reported in the following tables.
Tax Increment Financing utilized by St. Louis County, Cities located in St. Louis
County and St. Louis City
Missouri’s Real Property Tax Increment Allocation Redevelopment Act enables
cities to finance certain redevelopment costs with the revenue generated from (i)
payments in lieu of real estate taxes, as measured by the net increase in assessed
valuation resulting from redevelopment and (ii) a portion of the increase in other
local tax revenue associated with new economic activity. When a tax increment
financing (“TIF”) plan is adopted, real estate taxes in the redevelopment are frozen
at their current level. By applying the real estate tax rate of all taxing districts
Reduced
Unabated Tax Abated Tax Tax
St. Louis City Values Revenue Values Revenue Revenue
Residential 147,239,040$ 158,724$ 110,822,179$ 22,706$ 136,018$
Comme rcial 190,333,200 205,179 148,956,196 51,336 153,843
Total 337,572,240$ 363,903$ 259,778,375$ 74,042$ 289,861$
For th e Year Ended June 30, 2021
Reduced
Un abate d Tax Abated Tax Tax
St. Lou is City Values Revenue Values Revenue Revenue
Residential 178,760,490$ 192,525$ 35,055,120$ 37,754$ 154,771$
Comme rcial 292,550,470 315,077 127,193,830 136,988 178,089
Total 471,310,960$ 507,602$ 162,248,950$ 174,742$ 332,860$
For the Year Ended June 30, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 101
having taxing power within the redevelopment area to the increased assessed
valuation resulting from redevelopment, a tax “increment” is produced. The real
estate tax increments are referred to as payments in lieu of taxes, or “PILOTs”,
and are deposited in a special allocation fund.
The estimated TIF incremental values and the District’s net reduced tax revenue
resulting from the TIFs adopted in St. Louis County and the cities located in the
County and adopted in the City of St. Louis are as follows:
In summary, the District’s total tax revenues reduced during fiscal 2021and 2020
as a result of the programs of other governments are as follows:
TI F TIF
Incremental Reduced Incremental Reduced
St. Louis County or City Values Tax Revenues Values Tax Revenues
St . Louis County and Citie s Located
in St. Louis County 541,545,970$ 583,787$ 580,156,870$ 624,829$
St . Louis County PILOTs Received —(55,007)—(34,565)
St . Louis City 1,309,205,243 401,965 1,308,525,243 334,873
St . Louis City PILOTs Received —(44,808)—(42,175)
Total 1,850,751,213$ 885,937$ 1,888,682,113$ 882,962$
June 30, 2021
For the Years Ended
June 30, 2020
Reduced Reduced
St. Louis County or City Tax Revenues Tax Revenues
St . Lo uis County and Cities Located
in St. Louis Co unty - Tax Abate me nts 575,103$ 386,802$
St . Lo uis City - Tax Abate me nts 289,861 332,860
St . Lo uis County and Cities Located
in St. Louis Co unty - TIFs 528,780 590,264
St . Lo uis City - TIFs 357,157 292,698
Total Reduced Tax Revenues 1,750,901$ 1,602,624$
For the Years Ended
June 30, 2021 June 30, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 102
16.Fiduciary Pension Trust Fund Cash and Investments
The Metropolitan St. Louis Sewer District Employees’ Pension Plan (“Pension
Plan”) is reported as a Fiduciary Pension Trust Fund. The Pension Plan reports
financial data on a calendar year basis and issues a publicly available financial
report with audited financial statements which can be found on the District’s
www.msdprojectclear.org website or may be obtained by writing: The
Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-
2555. The cash and investment information for this plan is included below and the
fair value measurement and application is included in Note 17.
Categories of Asset Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the
Pension Plan’s investment in a single issuer. Pursuant to Resolution 3597, the
Pension Plan is authorized to invest in the following;
Equity Investments: Common stocks of corporations, mutual funds, or co-
mingled equity funds (Domestic and International, target range 6% to 25%,
allowable range 2% to 30% ).
Fixed Income Investments: U.S. government and agency securities,
corporate bonds, debentures, notes, or other evidence of indebtedness
assumed or guaranteed by corporations (Domestic and International, target
range 8% to 14%, allowable range 3% to 19%).
Short-term Securities: Commercial paper, treasury bills, certificates of
deposit, and/or money market funds.
Real Estate Investments: R eal estate investment trusts and multi-employer
property trusts (Target range 12%, allowable range 0% to 15%).
Hedge Funds, Global Tactical, Real Assets, Market Neutral, and Absolute
Return Investments; these investment strategies help diversify the
investment portfolio.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 103
The fair value of investments managed consisted of the following:
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. The Pension Plan does not have a formal investment
policy that limits investment maturities as a means of managing its exposure to
interest rates. The Pension Plan had the following debt securities and maturities:
As of December 31,
2020 2019
Investm ents, at F air Value
Collective In ve stment Funds 171,767,753$ 136,062,084$
Mutual Funds 60,179,174 70,580,513
Real Es tate Investment s 30,265,219 32,566,168
Corp ora te Ob ligations 27,630,867 21,981,050
Domestic C om mon S tocks 18,552,256 14,868,772
US Treasury a nd A gency Ob ligations 13,994,724 16,428,797
Money M arket Funds 3,237,837 3,110,257
Municipal Ob ligations 1,292,527 554,136
Total Investments 326,920,357$ 296,151,777$
As of D ecember 3 1, 2 020
Weighted
Average
Maturity
Inve stm ent Type Fair Value (in Y ears)
Corporate Obligations 27,630,867$3.92
U.S. Treasury and A gency Obligations 13,994,724 5.46
Municipal Obligations 1,292,527 3.57
Total 42,918,118$
Portf olio Weighted Average M aturity in Y ears 4.42
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 104
The Pension Plan will minimize the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates by:
Structuring the investment portfolio so that securities mature to meet cash
requirements for benefit payments, thereby avoiding the need to sell
securities on the open market prior to maturity; and
Monitoring fixed income investment managers’ performances to be sure the
fixed income portion of the investment portfolio is managed to
predetermined indexes.
Credit Risk
Investment credit risk is the risk that the issuer or other counterparty to an
investment will not fulfill its obligations. The Pension Plan does not have a formal
credit risk policy. The Pension Plan will minimize credit risk by:
Pre-qualifying the financial institutions, broker/dealers, intermediaries,
and advisors with which the Pension Plan will do business; and
Diversifying the portfolio so that potential losses on individual securities
will be minimized.
As of D ecember 3 1, 2 019
Weighted
Average
Maturity
Investment Type Fair Value (in Y ears)
Corporate Obligations 21,981,050$3.67
U.S. Treasury and A gency Obligations 16,428,797 5.34
Municipal Obligations 554,136 2.72
Total 38,963,983$
Portf olio Weighted Average M aturity in Y ears 4.36
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 105
The following tables provide information on the credit ratings associated with the
Pension Plan’s investments in debt securities:
U.S. Treasury
S & P & Agenc y Munic ipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ —$ 3,328,025$ 3,328,025$
AA 13,994,724 1,039,765 876,954 15,911,443
A —221,605 5,645,923 5,867,528
BBB —31,157 12,531,702 12,562,859
BB ——221,720 221,720
Not Rated ——5,026,543 5,026,543
Total 13,994,724$ 1,292,527$ 27,630,867$ 42,918,118$
Credit R ating b y Inve stm ent as of D ecember 3 1, 2 020
U.S. Treasury
S & P & Agenc y Munic ipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ —$ 3,322,315$ 3,322,315$
AA 16,428,797 524,046 795,055 17,747,898
A ——4,013,879 4,013,879
BBB —30,090 9,862,765 9,892,855
Not Rated ——3,987,036 3,987,036
Total 16,428,797$ 554,136$ 21,981,050$ 38,963,983$
Credit R ating b y Inve stm ent as of D ecember 3 1, 2 019
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 106
Investments Greater Than 5% of Net Position Restricted for Pension
Benefits or Total Investments
Investments that exceed 5% of net position restricted for pension benefits or total
investments at December 31, 2020 or 2019 are as follows:
2020 %2019 %
BlackRock R us sell 1000 In dex Fund N on-Lending 83,783,652$ 26%73,563,571$ 25%
Prudential Core Plus B ond Fund 40,461,722 12%36,944,488 12%
Morga n S tanley Int erna tional Eq ui ty Fund I 40,216,372 12%35,694,985 12%
UBS Trumbull Property Fund 30,265,219 9%32,566,282 11%
Brandywine Global Bond Opportuni stic Fixed Incom e 27,297,538 8%24,337,678 8%
Morga n S tanley Emergi ng M arkets Fund I 19,962,802 6%18,621,570 6%
TimesSquare Small Cap Growth Fund 19,005,439 6%16,325,240 6%
Ke nnedy M id Cap V alue 18,571,060 6%14,892,847 5%
December 3 1,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 107
17.Fiduciary Pension Trust Fund Fair Value Measurement and
Application
The Pension Plan categorizes its fair value measurements within the fair value
hierarchy established by U.S. generally accepted accounting principles. The
hierarchy is based on the valuation inputs used to measure the fair value of the
asset and give the highest priority to unadjusted quoted process in active markets
for identical assets or liabilities and the lowest priority to unobservable inputs. The
Pension Plan had the following fair value measurements of invested assets as of
December 31, 2020 and December 31, 2019:
In vestments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Market s for Other Significant
Identical Observable Unobservab le
Assets In puts In puts
In vestments by Fair Value Lev el 12/31/2020 (Lev el 1)(Level 2)(Level 3)
Debt Securities:
Cor porate Obligations 27,630,867$ —$ 27,630,867$ —$
US Treasury Notes and Bonds 8,491,150 8,491,150 ——
US Gover nment Agency Obligations 5,503,574 —5,503,574 —
Municipal Obligations 1,292,527 —1,292,527 —
Total Debt Securities 42,918,118 8,491,150 34,426,968 —
Equ ity Securities:
Dom estic Equities 18,552,256 18,552,256 ——
International Equities 40,216,372 —40,216,372 —
Emerging Markets Fund 19,962,802 —19,962,802 —
Total Equity Securities 78,731,430 18,552,256 60,179,174 —
Total Investm en ts by Fair Value Level 121,649,548 27,043,406$ 94,606,142$ —$
Unfunded Redem ption Redem ption
In vestments Measured at the Net Asset Value (NAV)Com mitments Frequency Notice Period
Domestic Equities (1)102,789,091 —Daily Varies
Core Plus Bond Commingled Trust Fund (2)40,461,722 —Daily 5 Days
Real Estate Funds (3)30,265,219 —Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)27,297,538 —Daily 10 Days
Diversified Hedg e Fund of Fund (5)1,219,402 —Quarterly 90 Days
Total Investm en ts Measured at the Net Asset Value 202,032,972
Money Market at Amor tized Cost 3,237,837
Total Investm en ts at Fair Value 326,920,357$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 108
(1)Domestic Equities –These funds seek long-term capital appreciation through passive or active
management of equity securities listed on U.S. stock exchanges. Redemption is daily and the
notice period is two days or less.
(2)Core Plus Bond Commingled Trust Fund –Seeks to outperform the Barclays Capital U.S.
Aggregate Bond Index by investing primarily in fixed income securities in the U.S. investment
grade sectors, as well as U.S. fixed income securities below investment grade, the debt of
developed international markets, and the debt of emerging markets. Redemption is daily with a
1-day notice.
(3)Real Estate Funds –The portfolio assets in this investment consist primarily of high-quality
real estate investments located in major markets throughout the U.S. and are diversified by
property type, geographic region and economic sector. The majority of the investments are
stable, primarily income-oriented properties. The fair values of the investments in this type have
In vestments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Market s for Other Significant
Identical Observable Unobservab le
Assets In puts In puts
In vestments by Fair Value Lev el 12/31/2019 (Lev el 1)(Level 2)(Level 3)
Debt Securities:
Cor porate Obligations 21,981,050$ —$ 21,981,050$ —$
US Treasury Notes and Bonds 13,242,420 13,242,420 ——
US Gover nment Agency Obligations 3,186,377 —3,186,377 —
Municipal Obligations 554,136 —554,136 —
Total Debt Securities 38,963,983 13,242,420 25,721,563 —
Equ ity Securities:
Dom estic Equities 31,132,731 14,868,772 16,263,959 —
International Equities 35,694,984 —35,694,983 —
Emerging Markets Fund 18,621,570 —18,621,570 —
Total Equity Securities 85,449,285 14,868,772 70,580,512 —
Total Investm en ts by Fair Value Level 124,413,267 28,111,192$ 96,302,075$ —$
Unfunded Redem ption Redem ption
In vestments Measured at the Net Asset Value (NAV)Com mitments Frequency Notice Period
Domestic Equities (1)73,563,551 —Daily Varies
Core Plus Bond Commingled Trust Fund (2)36,944,488 —Daily 5 Days
Real Estate Funds (3)32,566,168 —Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)24,337,678 —Daily 10 Days
Diversified Hedg e Fund of Fund (5)1,216,368 —Quarterly 90 Days
Total Investm en ts Measured at the Net Asset Value 168,628,253
Money Market at Amor tized Cost 3,110,257
Total Investm en ts at Fair Value 296,151,777$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 109
been determined using the NAV per share (or its equivalent) of the investments. The District
has elected to liquidate holdings in the UBS Trumbull Property Fund. Redemption requests
from fund investors currently exceed the amount available for redemption. Redemptions are
calculated on a pro rata basis according to the ratio of the requesting investor's units to the total
of all investors then requesting redemptions. Any redemption request that is not fully honored
will be deemed effective in following quarters until completed.
(4)Global Fixed Income Collective Trust Fund –This fund invests in sovereign debt and
currencies of countries in its benchmark index, the investment-grade corporate bond and
mortgage-backed securities markets in those countries, as well as, to limited degrees, emerging
market, high yield debt, and securities of countries rated A or better by a nationally recognized
statistical rating organization. Redemption is daily with a 10-day notice.
(5)Diversified Hedge Fund of Fund –Seeks return, long-term capital growth and diversification
through a combination of Managers trading a range of strategies, including, but not limited to,
hedging, distressed securities, arbitrage and special situations. The fair values of the
investments in this type have been determined using the NAV per share (or its equivalent) of
the investments. The District’s remaining investment in this fund is limited to its pro rata
interest in Peruvian sovereign bonds held through an investment in the Fund, whose advisor
has endeavored to sell said interest, on a best efforts’ basis, and distribute any proceeds to
shareholders.
18.Subsequent Events
In preparing these financial statements the District has evaluated events and
transactions for potential recognition or disclosure through October 21, 2021, the
date the financial statements were available to be issued.
The District has authorized the issuance of Wastewater System Refunding
Revenue Bonds, Series 2026A to be issued on May 1, 2026. The par amount of the
bonds will total $106,930,000 and the bonds will be purchased by Barclays Capital
Inc. pursuant to the Forward Delivery Bond Purchase Agreement dated October 6,
2021. Upon issuance, the District plans to use the proceeds of the bonds to refund
the outstanding Wastewater System Revenue Bonds, Series 2016C.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 110
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
AND RELATED RATIOS
June 30, 2021
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THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 111
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO EMPLOYEES’ PENSION
PLAN
June 30, 2021
Schedule of Em ployer Contributions
To E mployees' Pension Plan
Fiscal Y ear Actuarially Contribution Contribution
Ending Determined Annual Deficiency Covered as a % of
June 30,Contribution Contribution (Excess)Payroll Covered Payroll
2015 10,359,139$ 10,359,139$ —$ 46,584,987$ 22.24%
2016 10,096,075 10,096,075 —44,996,070 22.44%
2017 11,236,828 11,236,828 —43,818,487 25.64%
2018 12,411,005 12,411,005 —42,751,918 29.03%
2019 12,609,689 12,609,689 —38,166,848 33.04%
2020 13,062,014 13,062,014 —37,757,169 34.59%
2021 12,771,525 12,771,525 —35,509,063 35.97%
Notes to Schedule:
1.This schedule will ultimately present ten ye ars of inform ation when a va ilable.
2.V aluation Da te: A ct ua ri ally determined contribution rates are ca lculated as of January 1 of the fiscal year i n whi ch
the cont ributions are reported.
M ethods and assumptions us ed to determine contri bution ra tes:
A ctua rial Cost Method:Entry A ge Normal
A mortization M ethod:Level dollar layered, 20 ye ar periods
A sset Valuation M ethod:3-year s moothing p eriod
Inflation:2.50%
S alary Increa ses:4.25%, a ve ra ge, including inflation
Inves tment Rate of Return:6.75%, net of pens ion p lan inves tment expens e, incl uding i nflation for 2020 and 2 021
6.90%, net of pens ion p lan inves tment expens e, incl uding i nflation for 2018 and 2 019
7.00%, net of pens ion p lan inves tment expens e, incl uding i nflation for all years prior
to 2018
M ortality:In the 2 021 and 2 020 actuarial va luations, a ssumed life expectanci es were ca lculated us ing
the Pub-2010 Genera l Amount -Weight ed M ortality T ables wi th genera tional projection
based on S cale M P-2020 and 2019, res pectively. In t he 2019, 2018 and 2017 actuarial
valuations , assumed life expectancies were calculated us ing t he R P-2014 Em ployee and
Healthy A nnuitant Mortality Table (with genera tional proj ect ions from 2006 based on the
most current M P improvem ent scale which i s updated annua lly) and t he R P-2014 Di sabled
Mort ality Table. In t he 2 016 and 2015 actuarial va luations, a ssumed life expectancies were
ca lculated us ing t he RP-2000 Healthy A nnuitant Mort ality Table and t he R P-2000
Disabled Mort ality Ta ble.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 112
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY
June 30, 2021
2020 2019 2018 2017
Total OPEB Liab ility
Servi ce cost 1,827$ 1,397$ 1,781$ 1,622$
Interest on total OPEB l iability 663 1,017 865 895
Ef fect of plan changes — 86 — —
Ef fect of econom ic/demogra phic ga ins or (losses)— (3,887) — —
Changes of assumptions or other inp uts 898 1,926 (987)438
Benefit paym ents (1,6 31)(1,539)(1,689)(1,600)
Net cha nge in total OPEB liability 1,757 (1,000)(30)1,355
Total OPEB Liability - Beginning 23,165 24,164 24,194 22,839
Total OPEB Liability - End ing 24,921$ 23,165$ 24,164$ 24,194$
Notes to Schedule:
1.C ha nges of a ssumptions and other input s reflect t he effects of changes in the discount ra te each p eriod.
The following a re the discount ra tes us ed in each period:
2020 2.12%
2019 2.74%
2018 4.10%
2017 3.44%
2016 3.78%
2.N o assets are accumul ated in a trus t that meets t he criteria in paragraph 4 of GA SB Statement N o. 7 5
t o pay related benefits.
3.Thi s schedul e wi ll ul timately pres ent ten years of information when a va ilable.
4.C ontributions to the OPEB plan a re not b ased on a m easure of pa y s o accordingl y, no measure of payroll
i s pres ented.
Calendar Year Ending Dec ember 31,
Schedule of Changes in T otal OPEB Liab ility
In (000's)
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
Statistical Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
This part of the District’s annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
District’s overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the
reader understand how the District’s financial
performance and well-being have changed over time ......................................113 –114
Revenue Capacity
These schedules contain information to help the reader
assess the District’s most significant local revenue
source, the user charge ......................................................................................115 – 122
Debt Capacity
These schedules present information to help the reader
assess the affordability of the District’s current levels of
outstanding debt and the District’s ability to issue
additional debt in the future .............................................................................123 – 125
Demographic And Economic Information
These schedules offer demographic and economic
indicators to help the reader understand the
environment within which the District’s financial
activities take place ...........................................................................................126 – 128
Operating Information
These schedules contain service and infrastructure data
to help the reader understand how the information in the
District’s financial report relates to the services the
District provides and the activities it performs ...............................................129 –130
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 113
2012 2013 2014 2015 a 2016 a
Net Position
Net investmen t in
capi tal assets 1,928,200$ 1,877,692$ 1,845,394$ 1,805,453$ 1,809,386$
Restricted 106,693 111,066 142,764 142,445 136,547
Unrestricted 175,010 251,300 279,794 330,218 381,124
Total Net Position 2,209,903$ 2,240,058$ 2,267,952$ 2,278,116$ 2,327,057$
2017 a 2018 a 2019 a 2020 a 2021 a
Net Position
Net investmen t in
capi tal assets 1,876,249$ 1,968,740$ 2,063,519$ 2,184,736$ 2,299,308$
Restricted 135,259 129,579 127,414 97,034 97,920
Unrestricted 379,660 392,997 429,591 488,859 500,699
Total Net Position 2,391,168$ 2,491,316$ 2,620,524$ 2,770,629$ 2,897,927$
a Years 2015 to current include a change in the calculation of the net pos ition componen ts which is
not reflected in years prior.
NET POS IT ION BY COM PONENT
LAST TEN FISCAL YEARS
(000's)
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 114
In come before
Non-operating Capital Capital Change
Fiscal Operat ing Operat ing Operat ing Revenue/Grants and Grants and in Net
Year Revenues Exp ens es In come (Exp ens es )Contributions Contributions Pos ition
2012 225,999,720$ 216,307,965$ 9,691,755$ 1,370,329$ 11,062,084$ 9,658,857$ 20,720,941$
2013 241,946,337 230,158,434 11,787,903 832,056 12,619,959 17,534,919 30,154,878
2014 265,772,853 241,297,635 24,475,218 (3,682,863) 20,792,355 7,102,480 27,894,835
2015 290,386,589 256,521,148 33,865,441 (13,074,700) 20,790,741 12,996,754 33,787,495
2016 319,857,731 273,095,705 46,762,026 (9,858,327) 36,903,699 12,036,784 48,940,483
2017 333,490,989 275,077,675 58,413,314 (3,916,119) 54,497,195 9,613,746 64,110,941
2018 368,311,477 273,765,206 94,546,271 (6,416,661) 88,129,610 26,077,674 114,207,284
2019 401,121,139 290,717,509 110,403,630 1,426,419 111,830,049 17,377,919 129,207,968
2020 437,992,039 296,739,396 141,252,643 2,461,185 143,713,828 6,390,907 150,104,735
2021 427,151,562 290,461,490 136,690,072 (24,093,457) 112,596,615 14,701,164 127,297,779
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 115
OPERATING REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Li censes,
Fi scal Sewer Service Permits, and
Yea r Ch arges , Net Other Fees Ot her
2012 220,765,581$ 2,683,823$ 2,550,316$ 225,999,720$
2013 235,980,065 2,731,497 3,234,775 241,946,337
2014 257,343,344 6,562,607 1,866,902 265,772,853
2015 282,270,193 6,656,831 1,459,565 290,386,589
2016 302,011,893 3,620,240 14,225,598 319,857,731
2017 328,359,526 4,036,362 1,095,101 333,490,989
2018 361,175,224 3,777,200 3,359,053 368,311,477
2019 395,579,903 3,063,458 2,477,778 401,121,139
2020 424,786,543 3,012,368 10,193,128 437,992,039
2021 419,900,364 3,753,797 3,497,401 427,151,562
Total
Operating
Revenues
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 116
Fi scal Em ployment Materials and Contracted Chemical
Year Costs Utilities Supplies Services Supplies
2012 87,098,037$ 12,634,274$ 12,737,240$ 26,056,481$ 1,355,113$
2013 91,960,314 14,534,075 12,249,397 33,670,887 1,455,725
2014 93,542,222 14,986,387 11,097,857 36,875,093 2,440,843
2015 96,759,245 16,499,964 12,651,008 41,500,864 3,964,165
2016 102,458,574 16,624,434 11,838,551 48,450,272 3,498,796
2017 106,441,619 16,783,922 12,170,738 46,502,512 3,569,449
2018 105,555,411 16,154,516 11,005,087 48,390,986 2,501,712
2019 114,570,104 16,896,093 12,446,227 52,496,518 3,667,207
2020 115,575,521 15,770,882 12,045,016 52,776,346 3,123,434
2021 106,790,672 14,948,574 13,089,179 51,735,701 2,793,263
Fi scal
Year In surance Other
2012 2,470,343$ 7,214,413$ 149,565,901$ 66,742,064$ 216,307,965$
2013 2,696,416 3,561,780 160,128,594 70,029,840 230,158,434
2014 2,737,491 5,530,535 167,210,428 74,087,207 241,297,635
2015 2,791,622 3,713,021 177,879,889 78,641,259 256,521,148
2016 3,218,041 3,023,288 189,111,956 83,983,749 273,095,705
2017 3,293,267 5,121,777 193,883,284 81,194,391 275,077,675
2018 3,371,910 5,459,242 192,438,864 81,326,342 273,765,206
2019 3,819,449 3,182,068 207,077,666 83,639,843 290,717,509
2020 4,158,280 5,656,605 209,106,084 87,633,312 296,739,396
2021 4,410,048 5,341,784 199,109,221 91,352,269 290,461,490
Note: Balances in FY18 and prior were restated in FY19 to accurately reflect expen ses in the
appropr iate category. The majority of the changes were increases to Employment Cos ts and Other and
decreases to Materials and Supplies and Con tracted Ser vices.
OPERATING EX PENS ES
LAST TEN FISCAL YEARS
Subtotal,
Exp enses
before
Depreciation
Total
Operating
Exp en sesDepreciation
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 117
2012 2013 2014 2015 2016
Non-oper ating revenues
Property taxes levied by the District 24,604,173$ 26,016,135$ 27,450,319$ 24,764,324$ 25,671,058$
Investment income 2,407,485 1,056,966 2,966,549 3,000,591 4,635,866
Rent and ot her income 294,591 293,159 302,506 37,321 102,865
Total non-oper ating revenues 27,306,249 27,366,260 30,719,374 27,802,236 30,409,789
Non-operating expenses
Interest expense 16,365,309 21,062,474 25,661,127 27,138,546 28,943,200
Net loss on disposal and sale
of capital assets 3,162,723 795,527 5,248,443 1,420,902 324,513
Non-recurring projects and studies 6,402,888 4,676,203 3,492,667 12,317,488 11,000,403
Legal claims 5,000 — — — —
Total non-oper ating expenses 25,935,920 26,534,204 34,402,237 40,876,936 40,268,116
Net non-operating revenue (expense)1,370,329$ 832,056$ (3,682,863)$ (13,074,700)$ (9,858,327)$
2017 2018 2019 2020 2021
Non-operating revenues
Property taxes levied by the District 32,458,054$ 33,748,932$ 34,107,619$ 35,439,441$ 43,624,302$
Investment income 2,902,624 7,405,957 16,699,153 16,259,182 1,392,278
Rent and ot her income 106,562 253,799 301,446 301,631 323,662
Total non-oper ating revenues 35,467,240 41,408,688 51,108,218 52,000,254 45,340,242
Non-operating expenses
Interest expense 31,250,777 36,695,083 33,082,384 36,119,362 56,615,868
Net loss on disposal and sale
of capital assets 673,044 1,833,908 970,825 961,476 990,108
Non-recurring projects and studies 7,459,538 9,296,358 15,628,590 12,458,231 11,827,723
Total non-oper ating expenses 39,383,359 47,825,349 49,681,799 49,539,069 69,433,699
Net non-operating revenue (expense)(3,916,119)$ (6,416,661)$ 1,426,419$ 2,461,185$ (24,093,457)$
NON-OPERAT ING REVENUES AND EXPENSES
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
Note: Interest expense increased in FY21 due to the implementation of GASB Statement No. 89, Accountin g for Interest Cost Incurred
Be fo re the End of a Construction Period , resulting in all interest cost incurred in FY21 being charged to interest expense in the period
in which it was incurred.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 118
Ty pe of Monthly Charge Unmeter ed c Residential c Non-Residential
Wastewater User Charge
Base Charge 26.40$ 26.40$ 26.40$
Com pliance Charge a
Tier 1 ——4.44
Tier 2 ——62.16
Tier 3 ——133.20
Tier 4 ——177.60
Tier 5 ——222.00
Vol ume Char ges
per Ccf b —5.00 5.00
per room 2.95 ——
per water closet 11.02 ——
per bath 9.19 ——
per separate shower 9.19 ——
Extra Strength Surcharges a
Suspen ded Solids ("SS") over 300 milligram s per liter ——302.67
Biochemical Oxygen Dem and ("BOD") over 300 ——812.94
milligrams per liter
Chemical Oxygen Demand ("COD") ov er 600 milligrams ——406.47
per liter
Notes:
a Applicable only to non-residential customers, Extra Stren gth Surcharges pr iced per ton
b Ccf = Hundred cubic feet
c User charges for certain low income residen tial users will be 50 per cent of the regular user charge
Source: Finance Departmen t
US ER CHARGE RAT ES
As of June 30, 2021
Metered
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 119
Fi scal
Yea r
Wastewater
Charges Billed1
Wastewater
Charges Collect ed2
Collect ions as a %
of Wastewater
Charges Billed
2012 222,425,957$ 217,396,623$ 97.74%
2013 233,882,795 233,877,875 99.99%
2014 245,555,628 241,549,548 98.37%
2015 279,555,881 275,049,684 98.39%
2016 300,803,084 299,932,808 99.71%
2017 326,663,167 322,829,334 98.83%
2018 359,628,200 351,107,233 97.63%
2019 394,518,583 386,033,225 97.85%
2020 425,147,702 419,918,978 98.77%
2021 420,781,206 417,788,153 99.29%
Note: The table shows the amount of wastewater user charge revenues which were
billed and collected by the District for the last ten fiscal years.
1 Wastewater Charges Billed includes wastewater user charge revenues billed and
accrued for the year.
2 Wastewater Charges Collected includes wastewater user charge revenues collected
for the current year and previous years billings.
US ER CH ARGE REVENUES
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 120
2012 a 2013 b 2014 2015 2016
Residential:
Single-Family/Unit 1 347.64$ 379.56$ 421.08$ 434.76$ 491.52$
Multi-Family/U nit 296.28 324.12 360.36 434.04 490.80
Commercial/Industrial:
Ser vice Charge/Unit 2 525.60 478.56 412.56 348.12 296.80
Sanitary Sewer Usage Charge per Ccf 2.11 2.28 2.50 2.82 3.21
Extra Str en gth Surcharges:
SS ov er 300 milligrams per liter (pr ice per ton)231.35 231.35 231.35 244.03 251.88
BOD over 300 milligrams per liter (pr ice per ton)620.14 620.14 620.14 620.14 632.38
COD over 600 milligrams per liter (pr ice per ton)310.07 310.07 310.07 310.07 316.19
2017 c 2018 2019 2020 2021 d,e
Residential:
Single-Family/Unit 1 535.08$ 591.72$ 602.76$ 666.84$ 674.31$
Multi-Family/U nit 492.00 544.08 602.76 666.84 674.31
Commercial/Industrial:
Ser vice Charge/Unit 2 336.69 363.53 395.42 428.90 435.83
Sanitary Sewer Usage Charge per Ccf 3.59 3.97 4.40 4.87 4.97
Extra Str en gth Surcharges:
SS ov er 300 milligrams per liter (pr ice per ton)262.00 269.07 277.03 283.87 297.97
BOD over 300 milligrams per liter (pr ice per ton)654.00 671.63 691.50 708.56 786.85
COD over 600 milligrams per liter (pr ice per ton)327.00 335.82 345.76 354.30 393.43
Notes:
1 Based on average usage of a typical single-fam ily during the fiscal year listed.
2 Service Charge/Unit for Commercial/Industrial is calculated by using the sum of annualized base charge and compliance charge.
Starting FY 2013, MSD im plem ented 5-tier Compliance Charge Rate Model, so the Service Charge/Unit is based on calculated weighted
average com pliance charge. FY 2013, FY 2014 & FY 2015 Service Charge/Unit were adj usted to reflect the weighted average compliance
charge calculations. Prior to FY 2013, there was on ly one tier compliance charge.
a Ordinance 13021, effective July 1, 2010, changed wastewater rates through FY 2012.
b Ordinance 13402, effective July 1, 2012, changed wastewater rates through FY 2016.
c Ordinance 14395, effective July 1, 2016, changed wastewater rates through FY 2020.
d Ordinance 15418, effective October 1, 2020, changed wastewater rates through June 30, 2021. The FY21 rates are blen ded rates du e to the
Board approving a delay fr om July to October for the FY21 rate increase due to the COVID-19 pandemic.
e Ordinance 15669, effective July 1, 2021, changed wastewater rates through FY 2024.
Source: Finance Departmen t
SEWER USER CHARGES (COM POSITE-ANNUAL)
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 121
Single-Multi-
Fi scal Family Family Non-Total
Year Residen tial Residential Residential Account s
2012 360,354 41,648 24,568 426,570
2013 359,243 41,117 24,441 424,801
2014 358,928 40,951 24,297 424,176
2015 359,317 41,131 24,389 424,837
2016 356,926 41,585 24,001 422,512
2017 360,534 41,697 24,253 426,484
2018 360,957 41,355 24,296 426,608
2019 361,288 41,288 24,095 426,671
2020 361,545 41,365 24,066 426,976
2021 362,803 41,533 23,960 428,296
Source: Finance Depar tm en t
Note: Total ac counts listed above are as of June 30 for eac h fisc al year listed.
NUM BER OF CUS TOMERS BY TYPE
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 122
Cus tomer Am ount %
InBev Anheuser-Busch 5,329,515$ 1.25%
City of St. Louis 2,088,772 0.49%
Sigm a-Aldrich 1,839,263 0.43%
Missouri-Am er ican Water Co.1,728,302 0.41%
Washington University 1,688,185 0.40%
GKN Aeros pac e N America Inc.1,064,644 0.25%
Jost Real Estate LLC 1,064,622 0.25%
The Boei ng Com pany 1,051,546 0.25%
BJC Health System 1,034,101 0.24%
St Louis University 948,931 0.22%
Subtotal (10 largest)17,837,881 4.19%
Balance fr om other customers 407,409,902 95.81%
Gr and totals 425,247,783$ 100.00%
Cus tomer Am ount %
An heuser-Bu sch 4,142,554$ 1.82%
Washington University 1,384,757 0.61%
Mallinck rodt 1,117,808 0.49%
City of St. Louis 811,729 0.36%
Cott Bev er ages 744,933 0.33%
Zoolog ical Gardens 727,895 0.32%
Boeing 693,364 0.30%
The Dial Cor por ation 546,024 0.24%
Sigm a-Aldrich 540,757 0.24%
BJC Health Systems 528,696 0.23%
Subtotal (10 largest)11,238,517 4.94%
Balance fr om other customers 216,438,913 95.06%
Gr and totals 227,677,430$ 100.00%
User Charges
TEN LARGEST CUS TOMERS
CUR RENT YEAR AND NINE YEARS AGO
Fi scal Year 2021
User Charges
Fi scal Year 2012
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 123
Unamortized
Fi scal Subordinate Capital Premium, Net
Year Senior Subordinate Direct Loans Lease of Discount Amount Per Capita
2012 390,880,000$ 200,692,500$ 63,727,722$ 3,096,139$ 5,805,206$ 664,201,567$ 488$ 1.66
2013 594,715,000 188,600,000 93,751,658 — 56,252,401 933,319,059 702 2.26
2014 740,655,000 184,075,000 116,090,820 — 82,274,845 1,123,095,665 852 2.84
2015 736,775,000 171,455,000 148,279,465 — 78,591,961 1,135,101,426 860 2.69
2016 860,460,000 158,765,000 184,141,916 — 112,035,478 1,315,402,394 997 3.07
2017 995,175,000 145,410,000 210,851,827 — 124,465,181 1,475,902,008 1,127 3.44
2018 1,167,225,000 131,810,000 227,240,106 — 166,900,626 1,693,175,732 1,297 3.83
2019 1,145,131,480 117,840,000 247,692,802 — 159,855,883 1,670,520,165 1,285 3.46
2020 1,176,786,480 103,490,000 278,193,895 — 131,864,536 1,690,334,911 1,305 3.51
2021 1,262,436,480 88,780,000 315,849,539 — 162,860,332 1,829,926,351 1,417 3.64
Notes:
Calculation of "Per Capita" for 2012 through 2013 is based on estimated popu lation levels.
Calculation of "As a Share of Personal Income (%)" for 2012 through 2013 is based on estimated income levels.
Fiscal years 2012 through 2019 "Per Capita" and "As a Share of Personal Income (%)" were restated to conform to the calculation used for fiscal year 2020.
In FY 2012, a dec ision was made to discontinue consider ing SRF receivable amounts as liabilities. The liability is now recorded when the funds are received.
Sources: Regional Economic Infor mation System, Bureau of Econom ic Analysis, U.S. Department of Commerce, and the U.S. Census Bureau
Income (%)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Total
Revenue Bonds As a Share
of Personal
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 124
Amount of Debt Percentage of Debt
within within
Governmental Unit Debt Outstanding District Boundary District Boundary
City of St. Louis 74,895,000$ 74,895,000$ 100.0%
St. Louis Cou nty 68,775,000 68,224,800 99.2
Municipalities 127,401,115 124,996,115 98.1
City of St. Louis School District 210,359,000 210,359,000 100.0
St. Louis Cou nty School Districts 1,675,769,095 1,660,594,375 99.1
Fire Districts 151,258,773 143,182,290 94.7
2,308,457,983$ 2,282,251,580 98.9%
Total Dir ec t Debt 1,829,926,351
Total Dir ec t and Overlapping Debt 4,112,177,931$
Sou rces:
City of St. Louis, Office of Com ptr ol ler
St. Louis Cou nty, Depar tm en t of Rev en ue
St. Louis Public Schools, Financ ial/Treasurer Offic e
Missouri Depar tm en t of Edu cation, School Finance
Polled Governments
Polled Fire Districts
Note: Although the District comprises all of the St. Louis City and most of St. Louis Cou nty, it does not en tirely
match the Cou nty's boundaries. The calculation of over lapping debt is based on the per centage that a political
jurisdiction's territory lies within the District's territory. These per centages are weighted against the debt
ou tstanding thus pr ov iding the amount of debt within District Bou ndary.
COM PUT AT ION OF OVERL APPING DEBT
As Of June 30, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 125
Les s:
Operating
Exp en ses
(exc luding
Non-dep reciation,Net
Fi scal Operating operating Gross GASB 68 &Available
Year Revenues Revenues Revenues GASB 75)Revenues
2012 224,882,086$ 2,058,300$ 226,940,386$ 135,232,302$ 91,708,084$
2013 240,597,715 956,664 241,554,379 146,372,419 95,181,960
2014 264,422,401 2,670,333 267,092,734 153,221,914 113,870,820
2015 288,835,877 2,555,654 291,391,531 163,311,194 128,080,337
2016 318,463,297 3,894,305 322,357,602 168,258,133 154,099,469
2017 333,469,677 2,456,677 335,926,354 168,835,676 167,090,678
2018 368,292,762 6,356,029 374,648,791 163,026,313 211,622,478
2019 401,109,124 14,438,669 415,547,793 170,585,143 244,962,650
2020 437,982,036 14,210,947 452,192,983 175,848,764 276,344,219
2021 427,145,372 5,740,323 432,885,695 180,843,680 252,042,015
Fi scal Coverage
Year Principal In terest Total Ratio
2012 16,540,200$ 22,517,473$ 39,057,673$ 2.3
2013 18,749,700 31,191,190 49,940,890 1.9
2014 10,037,200 34,399,261 44,436,461 2.6
2015 20,252,200 41,596,192 61,848,392 2.1
2016 29,588,000 44,171,592 73,759,592 2.1
2017 38,026,700 51,333,869 89,360,569 1.9
2018 42,716,800 57,682,698 100,399,498 2.1
2019 50,907,800 63,224,915 114,132,715 2.1
2020 52,587,600 59,932,607 112,520,207 2.5
2021 58,574,100 60,727,474 119,301,574 2.1
Fi scal Coverage
Year Principal In terest Total Ratio
2012 1,960,000$ 16,488,587$ 18,448,587$ 5.0
2013 3,805,000 24,451,656 28,256,656 3.4
2014 4,060,000 30,161,408 34,221,408 3.3
2015 3,880,000 34,472,415 38,352,415 3.3
2016 10,170,000 36,211,319 46,381,319 3.3
2017 15,285,000 42,897,077 58,182,077 2.9
2018 18,365,000 49,558,285 67,923,285 3.1
2019 22,355,000 55,586,363 77,941,363 3.1
2020 23,305,000 52,355,403 75,660,403 3.7
2021 28,575,000 53,110,268 81,685,268 3.1
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Senior and Subordinate Debt Service
Senior Debt Service
Note: The methodology used to calculate the net available reve nues and the coverage ratio was adjusted during fiscal
ye ar 2013 and all previo us years were re state d for comparative purposes. The 2013 change in methodology consiste d of
removing agency fees, previously reflected as a deduction from net available reve nues, and now combining them with
in te rest in the de bt service section. In fiscal year 2017 th e methodology was changed to exclude GASB non-cash
transactions from the debt se rvice co ve rage calculatio n. Fiscal years 2015 and 2016 have be en adjusted to also exclude
the GASB 68 non-cash pensio n expe nse. In fiscal year 2021 the methodology was changed to exclude non-cash
unrealized gain/loss o n investments from the de bt se rvice co verage calc ulatio n.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 126
Per
Personal Capita Total Medi an
Fiscal In come Personal Number of Househ old Labor
Year Populations (millions)1 In come 1 Households 2 In come 3 City County State Force
2012 1,360,085 40,109 29,490 546,744 51,402 9.7 6.9 7.0 672,945
2013 1,328,610 41,365 31,105 543,851 52,407 10.5 7.3 7.1 665,086
2014 1,318,610 39,593 30,026 543,991 55,573 9.6 6.9 6.6 666,200
2015 1,319,295 42,176 31,969 543,945 52,619 7.1 5.5 5.8 703,317
2016 1,319,047 42,845 32,482 542,223 53,156 5.9 4.6 4.9 718,821
2017 1,309,985 42,844 32,705 541,394 53,528 4.7 3.7 4.9 692,644
2018 1,305,352 44,248 33,897 541,832 54,821 4.3 3.3 3.5 699,882
2019 1,299,783 48,287 37,150 542,048 59,063 4.3 3.3 3.3 699,494
2020 1,294,781 48,113 37,159 544,002 59,054 12.0 8.9 7.9 677,261
2021 1,291,665 50,269 38,918 547,936 61,326 7.4 5.3 5.1 687,043
Notes:
1The data in fiscal years 2012-2019 were restated to conform to the calculation used for fiscal year 2020.
2 The number of households was taken from http://www.census.gov/quickfacts/fact/table/US-MO: 2021 figure is based on
2015-2019 data; 2020 figure is based on 2014-2018 data; 2019 is based on 2013-2017 data; 2018 is based on 2012-2016 data;
2017 is based on 2011-2015 data; 2016 is based on 2010-2014 data; 2015 is based on 2013 data; 2014 is based on 2012 data;
2012-2013 are based on 2010 census.
3 Median Household Income added to this schedu le in fiscal year 2020 and all prior years updated to include this data.
Sources: Regional Econom ic Information System, Bureau of Econom ic An alysis, U.S. Depar tment of Com merce,
and Missouri Economic Resource and Information Cen ter (MERIC)
http://www.bea.gov/regional/reis/scb.cfm
Footnot es-http://www.meric.mo.gov/regional-profiles/st-louis
https://www.census.gov/quickfacts/fact/table/US/PST045217
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment Rate
Saint Louis
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 127
Percentage Percentage
Em ployer Em ployees of Total Rank Em ployees of Total Rank
BJC HealthCare 29,660 5%1 24,882 4%1
Washington University in St. Louis 18,488 3%2 13,483 2%3
Mercy 15,587 2%3 8,926 1%8
Boeing Defense, Spac e & Sec urity 15,418 2%4 15,600 3%2
Scott Air Force Base 13,000 2%5 12,344 2%5
SSM Health 11,446 2%6 12,548 2%4
Schnuck Mar kets Inc 9,576 1%7 10,951 2%6
Saint Louis University 6,636 1%8 N/A N/A
City of St. Louis 6,625 1%9 N/A N/A
Spec ial School District of St. Louis Cou nty 6,151 1%10 N/A N/A
Wal-Mart Stores Inc.N/A N/A 10,800 2%7
AT &T N/A N/A 8,900 1%9
United Postal Ser vice N/A N/A 7,872 1%10
132,587 20%126,306 20%
Total Em ploymen t 647,437 100%622,629 100%
Note: Employees are for the St. Louis area which includes several counties not ser ved by the District.
Sources:
St. Louis Business Journal's Bo ok of Lists 2021 as of June 2021
St. Louis Business Journal's Bo ok of Lists 2012
PRINCIPAL EMPLOYERS (ST. LOUIS METROPOL ITAN AREA)
CURRENT YEAR AND NINE YEARS AGO
Fi scal Yea r 2021 Fiscal Year 2012
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 128
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Adm inistrative 129 124 122 129 126 131 129 127 117 121
Offic e/Cler ical 85 86 82 84 82 82 75 73 84 78
Plant Operation & Laboratory 244 249 252 236 226 227 222 228 231 237
Engineer ing & Technical 153 148 151 155 152 151 150 166 174 176
Sewer Con struction
& Maintenance 311 324 328 345 358 360 365 341 349 344
Total Em pl oyees 922 931 935 949 944 951 941 935 955 956
Note: The total em ployees listed above ar e as of June 30 for eac h respec tive year.
Sour ce: Human Resources Depar tm en t
EMPL OY MENT LEVEL
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 129
Average Sewage
Fi scal Tr ea tment in Millions
Yea r of Gal lons per Day
2012 300.0
2013 326.7
2014 273.8
2015 327.5
2016 335.2
2017 328.9
2018 270.1
2019 396.4
2020 367.5
2021 300.6
Source: Oper ations Depar tm ent
AVERAGE FLOW
LA ST TEN FIS CAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 130
2012 2013 2014 2015 2016
Miles of sewers 9,738 9,578 9,563 9,531 9,700
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 528 528 533 538 538
Annual engineer ing maxim um plant capac ity
(millions of gallons)192,629 192,629 194,454 196,279 196,279
Am ount treated annually (millions of gallons)109,518 119,253 99,945 119,547 122,366
Unused capacity (m illions of gallons)83,111 73,376 94,509 76,732 73,913
Percentage of capacity utilized 57% 62% 51% 61% 62%
2017 2018 2019 2020 2021
Miles of sewers 9,400 9,400 9,400 9,400 9,400
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 593 593 593 593 811
Annual engineer ing maxim um plant capac ity
(millions of gallons)216,354 216,354 216,354 216,354 216,354
Am ount treated annually (millions of gallons)120,033 96,534 144,754 134,502 109,195
Unused capacity (m illions of gallons)96,321 119,820 71,600 81,852 107,159
Percentage of capacity utilized 55% 45%67% 62% 50%
Sources: Oper ations Depar tm en t and En gineer ing Department
Note:
a Million gallons per day - treatment capacity changed in fiscal year 2021 to reflec t pr imar y treatment capacity. Prior
years reflect per mitted secondary aver age treatment capac ity.
Fiscal Year
Fiscal Year
OPERAT ING AND CAPITAL INDICAT ORS
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT2350 MARKET STREET, ST. LOUIS, MISSOURI 63103WWW.MSDPROJECTCLEAR.ORG • 314-768-6200