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HomeMy Public PortalAboutFY2023 Adopted BudgetMetropolitan St. Louis Sewer District St. Louis, Missouri JULY 1, 2022 - JUNE 30, 2023 BUDGETADOPTED FISCAL YEAR20232023 METROPOLITAN ST. LOUIS SEWER DISTRICT AT A GLANCE INCORPORATION/GOVERNMENT Established .............................. February 9, 1954 Form of government ............................................ Political subdivision of the State of Missouri The Plan of the District was drafted by a Board of Freeholders and approved by the voters in 1954 and amended in 2000, 2012 and 2021. A six-member Board of Trustees -- three appointed by the Mayor of the City of St. Louis and three appointed by the County Executive of St. Louis County, sets the policy governing MSD. Board Member Term Expires Michael Evans, Chair, (City) ................ 3/15/2025 Ret. Col. Richard Wilson, (City) ........... 3/15/2022 Brian Wahby, (City) ............................. 3/15/2024 Amy Fehr, Vice Chair, (County) ........... 3/15/2024 Greg Nicozisn, (County) ...................... 3/15/2025 Brian K. Watson, (County) ................... 3/16/2026 Board meetings are held the second Thursday of the month and are open to the public. Various citizen groups are formed to submit comments on ballot propositions and key District initiatives. The voters in the community must approve all debt issues and tax issues. Bond Ratings Series 2022B* S&P ............................................................ AAA Moody’s ...................................................... Aa1 *Overall Outstanding Rating is consistent with 2022B Series. FY23 BUDGET Operating Budget ......................... $235.6 million CIRP .............................................. $418.5 million Debt Service ................................. $168.8 million Total FY22 Budget ........................ $822.9 million MAJOR SERVICES PROVIDED BY MSD Wastewater Treatment Sanitary & Stormwater Maintenance Floodwater Control Pump Station Operation & Maintenance Monitoring of Industrial Waste Issuance of Pretreatment Discharge Permits Engineering Design and Specification Construction of Sewer Lines Plan Reviews and Approvals Issuance of Connection Permits FY21 SERVICE STATISTICS OPERATIONS Sewer Lines ....................................... 9,400 Miles Treatment Plants .................................... 7 Plants Sewage Treatment: Average flow in million gallons per day (MGD) .......................................... 300.6 Treatment Capacity (MGD) ............................ 811 Annual engineering maximum plant capacity (millions of gallons) ............................... 216,354 Amount treated annually (millions of gallons) .............................. 109,195 Unused Capacity (millions of gallons) ... 107,159 Percentage of capacity utilized .................... 50% ENGINEERING Engineering Services: Sewer Plans Approved ............................... 525 Sewer Construction Permits Issued ........ 2,130 Sewer Connection Permits Issued .......... 1,621 BILLING Single Family Accounts .......................... 362,803 Multi-Family Accounts .............................. 41,533 Commercial-Industrial Accounts ............... 23,960 Total Accounts ...................................... 428,296 DEMOGRAPHICS Land Area ................................. 520 square miles Population ............................................ 1.3 million No. of Households - City & County ......... 553,224 No. of Registered Voters ........................ 981,832 Median Age of Residents-City ............... 36.0 yrs. Median Age of Residents-County .......... 40.4 yrs. Median Household Income-City ............. $45,782 Median Household Income-County ........ $68,661 Median value of housing-City ............... $143,700 Median value of housing-County .......... $206,700 Persons below poverty level: - St. Louis City .......................................... 20.4% - St. Louis County ........................................ 9.1% Unemployment St. Louis City ..................... .7.4% Unemployment St. Louis County ................. 5.3% Unemployment Missouri Average ............... 5.1% Unemployment National Average ................ 3.9% Cultural Institutions & Attractions: -Gateway Arch -St. Louis Art Museum -Missouri History Museum -Science Center -Saint Louis Symphony -Missouri Botanical Garden -Busch Stadium – St. Louis Cardinals Baseball -Enterprise Center – St. Louis Blues Hockey Major employers include (local employees): BJC HealthCare (29,660), Washington University in St. Louis (18,488), Mercy (15,587), Boeing Defense, Space & Security (15,418), Scott Air Force Base (13,000), and SSM Health (11,446). Fortune 500 companies include: Centene, Emerson Electric, Ameren, Post Holdings, Reinsurance Group of America, Edward Jones Investments, Olin, and Graybar Electric. AT A GLANCE TABLE OF CONTENTS I. INTRODUCTION A. Introduction Description .......................................................... 3 B. How to Use this Budget Document .......................................... 4 C. MSD 2023 Organization Chart ................................................ 6 D. MSD History and Demographics ............................................. 7 E. Linked Documents ................................................................... 9 F. District Watersheds Map ........................................................ 10 II. EXECUTIVE DIRECTOR’S BUDGET MESSAGE ............... 11 III. BUDGET SUMMARY A. Budget Summary Descriptions .............................................. 19 B. Budget and Financial Policies ................................................ 20 C. Financial Structure ................................................................. 30 D. Strategic Business & Operating Plan (SBOP) ........................ 33 E. FY21 Accomplishments ......................................................... 35 F. Ten Year Trend ...................................................................... 39 G. Budget Process ....................................................................... 40 H. Summary of Changes from Preliminary Budget .................... 43 I. Sources and Uses of Funding ................................................. 45 J. Revenue & User Charges ....................................................... 52 K. Issued Revenue Bonds & Debt Service .................................. 59 L. Expenditures and Interfund Expense Transfer Summary ....... 6 5 M. Allocated Positions ............................................................... 69 N. Long-Term Liabilities Pension & Post-Employee Benefits ... 70 O. List of Funds .......................................................................... 71 P. Fund Balances ........................................................................ 73 Q. Consolidated Statement of Changes in Fund Balance ............ 75 R. Fund Basis vs. GAAP Basis Statement of Operations ........... 77 IV. CAPITAL IMPROVEMENT AND REPLACEMENT PROGRAM A. Capital Improvement and Replacement Description ............. 79 B. Summary ................................................................................ 80 C. CIRP Projects with Impact on Operating Costs ..................... 84 D. Wastewater Construction Projects ......................................... 86 E. Wastewater Engineering Projects .......................................... 90 F. Stormwater Construction Projects ......................................... 93 G. Stormwater Engineering Projects .......................................... 96 H. Continued Wastewater Projects ............................................. 98 I. Continued Stormwater Projects .......................................... 100 J. CIRP Funding Timeline ....................................................... 102 K. Multi-decade CIRP Needs ................................................... 103 V. GENERAL FUND A. General Fund Description .................................................... 105 B. Revenue Trends and Changes in Fund Balance ................... 106 C. Significant Budget Changes ................................................ 110 D. General Fund Operating Expense Budget and Variances ... 111 E. General Fund Budget by Natural Account Group ............... 115 F. General Fund Budget and Two-Year Projection.................. 118 G. General Fund Expenditures by Organization 1. Board of Trustees ......................................................... 123 2. Rate Commission ......................................................... 129 3. Civil Service Commission ............................................ 135 4. Executive Director ........................................................ 141 5. Secretary-Treasurer ...................................................... 149 6. Human Resources ......................................................... 157 7. Finance ......................................................................... 165 8. Information Technology ............................................... 175 9. General Counsel ........................................................... 183 10. Operations .................................................................... 191 11. Engineering .................................................................. 205 METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 2023 BUDGET TABLE OF CONTENTS __________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________ 1 VI. REVENUE FUNDS A. Revenue Funds Description ................................................. 217 B. Revenue Trend ..................................................................... 218 C. Changes in Fund Balance - Consolidated ............................ 219 D. Projected User Charge Revenue-WW .................................. 221 VII. CONSTRUCTION FUNDS A. Construction Funds Description ........................................... 223 B. Revenue Trend ..................................................................... 224 C. Changes in Fund Balance - Individual Fund Statement 1. Sanitary Replacement Fund (6660) ....................... 225 D. Project Listing ...................................................................... 226 VIII. STORMWATER FUNDS A. Stormwater Funds Description ............................................. 229 B. Revenue Trend ..................................................................... 230 C. Changes in Fund Balance – Consolidated ............................ 231 D. Project Listing ...................................................................... 233 IX. OPERATION, MAINTENANCE and CONSTRUCTION IMPROVEMENT FUNDS A. OMCI Funds Description ..................................................... 235 B. Revenue Trend ..................................................................... 236 C. Changes in Fund Balance – Consolidated ............................ 237 D. Project Listing ...................................................................... 241 X. DEBT SERVICE FUNDS A. Debt Service Funds Description ........................................... 243 B. Revenue Trend ..................................................................... 244 C. Changes in Fund Balance – Consolidated ............................ 245 D. Wastewater Debt Service Graph & Amortization Schedule 251 XI. SPECIAL FUNDS A. Special Funds Description ................................................... 253 B. Revenue Trend ..................................................................... 254 C. Changes in Fund Balance - Consolidated ............................ 255 D. Project Listing ..................................................................... 257 XII. ORDINANCES A. Proposed Budget Ordinance #15904 ................................... 259 B. Proposed Tax Ordinance #15905 ......................................... 273 XIII. GLOSSARY A. Glossary ............................................................................... 285 GFOA DISTINGUISHED BUDGET AWARD METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 2023 BUDGET TABLE OF CONTENTS (continued) __________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________ 2 The Introduction Section contains the information regarding how to use this document, a District Organizational Chart, a brief history of Greater St. Louis and the District, services provided by the District, significant demographic information, links to supplement budget documents and a map of the service area. INTRODUCTION 3   HOW TO USE THIS BUDGET DOCUMENT The Metropolitan St. Louis Sewer District’s Annual Budget is comprised of three separate documents: The Annual Budget, the Budget Supplement (Capital Improvement and Replacement Program budget), and the Strategic Business and Operating Plan. This budget document is designed to communicate to the public concise and readable information about District policies, financial structure, operations, and its organizational framework. It displays the District's goals, strategies, and budget for the 2023 Fiscal Year (July 1, 2022 to June 30, 2023) and analyzes the District's revenues and expenditures. Throughout this book, rounding within reports may cause sub-totals or totals to appear off by a few dollars in either direction. In addition, this year there is a separate Detail Fund Book which provides details regarding expenses, revenue and appropriations for the funds used by the District to fund a variety of projects. The document is broken down into the following sections: Introduction: The introductory section contains the “How to Use This Budget Document” and the District Watershed Map. Also included is a District Organizational Chart with a listing of appointed Board members and key personnel followed by a brief history of Greater St. Louis and the District, services provided by the District, significant demographic information, a list of links to supplemental budget information and a service area map. Budget Message: The Executive Director's Budget Message provides an outline of the major assumptions relating to the annual budget, a general indication of the status of the District's finances and service levels, short and long-term goals, and other significant information. Budget Summary: This section includes a recap of the District’s Strategic Planning Process, Vision Statement, Mission, Values, Goals, and Strategies. A Gantt chart that lists each department’s objectives as they relate to the District’s overall Strategic Business and Operating Plan and performance against prior year’s objectives is also included. Each department’s objectives coincide with MSD’s goals and strategies. As each department works toward achieving their objectives, it will support the District in its mission to protect the public’s health, safety, and water environment by responsibly providing wastewater and stormwater management. The Budget Summary section presents the budgeted revenues and expenditures of the District along with Budget Policies and Procedures, Budget Calendar, and Allocated Positions. Capital Improvement & Replacement Program Summary: This section provides an overview of the upcoming and continued capital projects. These projects are funded from a variety of sources, including user charges, fund balance reserves, taxes, State Revolving Fund (SRF) and revenue bonds. In addition, a multi-decade CIRP needs table and a proposed five-year timeline is presented. 4   General Fund: The General Fund section begins with an overview of the fund followed by sections for individual departmental expenses. Each department’s section includes their mission, recent accomplishments, department objectives, budget, and staffing. Following the General Fund department expense sections, the document is broken down into other fund groups Revenue Funds: All user charge revenue is recorded in the Wastewater Revenue Fund. This fund represents actual, budgeted, and projected wastewater user charge revenue with projected service levels. A portion of the revenue is allocated to the General Fund for daily operating and maintenance costs and a portion to the Debt Service Funds to retire outstanding revenue bonds issued for capital improvements. The balance of the revenue is transferred to the Sanitary Replacement Fund, the General Insurance Fund, the Water Backup Fund, and the Emergency Fund. Stormwater user charges, previously reported in this section, have been discontinued starting with Fiscal Year 2017. Construction Funds: This section provides actual, budgeted, and projected revenues, capital improvement expenditures and fund balances including a detailed listing of planned projects and costs. Stormwater Funds: These funds were established to account for ad valorem taxes. Additionally, the Stormwater Regulatory Fund, Districtwide Stormwater Fund and the Stormwater Operations and Maintenance Funds are reported in this section and receive, or at one time received, property tax revenues. These funds are primarily stormwater dedicated funds for projects and stormwater operations and maintenance. Operations, Maintenance, and Construction Improvement (OMCI) Funds: These funds were established to account for ad valorem taxes. The primary source of revenue is generated from ad valorem tax levies. This revenue is restricted for stormwater operations and maintenance and related capital improvement projects within the individual taxing district, except for the Bonfils and Meramec subdistricts, which are dedicated to wastewater projects. Debt Service Funds: This group of funds presents actual, budgeted, and projected debt service obligations for revenue bonds issued by the District. Special Funds: This section details actual, budgeted, and projected revenues, expenditures, and fund balances of the various special funds such as the Water Back-up Insurance Fund and the Emergency Funds. Ordinances: The last few sections contain the text of the ordinances concerning the revenues and expenditures, taxes and user charges covered in this document. Glossary: A list of the terminology and acronyms used in this document that is either technical in nature or unique to the Metropolitan St. Louis Sewer District. Each term is given a short description that defines it within the context it is used. 5 Citizens – City of St. Louis   Citizens – St. Louis County   Tishaura Jones Mayor Dr. Sam Page County Executive Elects Brian Wahby  Trustee Term Expires:  3/15/24 Michael Evans Chair Term Expires:  3/15/25 Ret. Col. Richard Wilson Trustee Term Expires: 3/15/22 Greg Nicozisin Trustee Term Expires:  3/15/25 Amy Fehr Vice Chair Term Expires:  3/15/24 Brian Watson Trustee Term Expires:  3/16/26 Board of Trustees Brian Hoelscher Executive Director Budget ‐ $6,869,175 Page 141 FTE ‐ 21 Internal Auditor Budget included in  Secretary‐Treasurer Department Rate Commission Budget ‐ $702,000 Page 129 FTE ‐ 0 Timothy R. Snoke Secretary‐Treasurer Budget ‐ $2,392,924 Page 149 FTE ‐ 7 Civil Service Commission Budget ‐ $11,500 Page 135 FTE ‐ 0 Marion Gee Director Finance Budget ‐ $25,516,681 Page 165 FTE ‐ 65 Richard Unverferth Director Engineering Budget ‐ $29,243,024 Page 205 FTE ‐ 237 Susan Myers General Counsel Budget ‐ $3,495,479 Page 183 FTE ‐ 8 Tracey Coleman Director Human Resources Budget ‐ $9,153,602 Page 157 FTE ‐ 22 Bret Berthold Director Operations Budget ‐ $125,156,776 Page 191 FTE ‐ 608 Jonathon Sprague Director Information Technology Budget ‐ $17,185,663 Page 175 FTE ‐ 52 Page 123 Budget ‐ $10,350 Metropolitan St. Louis Sewer District Elects Note:  Appointments to the Board of Trustees may continue beyond the term expiration date if a new appointee is not named. Appoints Board of Trustees Non Employees Select GroupEmployee Appoints 6 St. Louis Metropolitan Area The City of St. Louis is an independent city, meaning it is not part of a county, founded in 1766, located on the eastern border of Missouri and covers an area of approximately 62 square miles. Before Europeans moved west, the St. Louis area was the center of the Native American Mississippian culture. European exploration began in 1673; five years later the area was claimed as part of French Louisiana. In 1764 control of the area was assumed by the Spanish as part of the Viceroyalty of New Spain. During the American Revolution, the Battle of St. Louis was waged by the British using Native American forces. In 1800 St. Louis was transferred to the Republic of France. In 1803, St. Louis was sold by France to the U.S. as part of the Louisiana Purchase. Steamboats arrived in St. Louis in 1818, improving connections to New Orleans and eastern markets. Missouri became a state in 1821 with St. Louis continuing to grow due to its port connections. In 1904 St. Louis hosted the first Olympics held outside of Europe and the World’s Fair, Louisiana Purchase Exhibition. Today’s Forest Park, which contains the St. Louis Zoo, St. Louis Art Museum and Missouri History Museum, was built as part of the Fair. St. Louis expanded in the early 20th century with the peak population in 1950. Suburbanization from the 50’s through the 90’s reduced the City’s population drastically. Revitalization efforts began in the 1980’s and resulted in St. Louis receiving the World Leadership Award for urban renewal in 2006. Today’s City of St. Louis has a population of 301,578. According to the 2020 U.S. Census estimates; 43.9% is White, 45.7% is Black or African American, 4.1% is Hispanic, 3.4% is Asian, 0.3% is American Indian/Alaska Native and 3.1% report two or more races. St. Louis County is comprised of 88 municipalities with some unincorporated areas, encompassing 508 square miles. The population estimate as of 2020 was 1,004,125 with a median age of 40.4 years. As of the 2020 Census data estimates, the racial makeup of the County is 65.3% White, 25.0% Black or African American, 4.7% Asian, 3.0% Hispanic, 0.2% American Indian/Alaska Native and 2.2% from two or more races. The County was organized in 1812 with the City of St. Louis voting to become independent in 1877. At the time there were 350,000 residents in the City and 30,000 in the County. The City residents wanted to be, “rid of county taxes and state influence over county government.” In 1970 the population of the County was 951,353 and the City’s population was 750,026. In the 2020 Census both the City and the County experienced a reduction in population. The combined City and County is known as Greater St. Louis and is the 20th largest metropolitan area in the U.S. The average annual temperature is 55 degrees Fahrenheit with an average precipitation of 43 inches per year. The City of St. Louis is also known as the Gateway to the West with the iconic St. Louis Arch rising 630 feet above downtown with the city at 465 feet above sea level. 7 Metropolitan St. Louis Sewer District The Metropolitan St. Louis Sewer District was created in 1954 to provide a metropolitan-wide sewer system and drainage facility 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 annexed other property and 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. 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 of the Missouri State Constitution. The Proposed Plan of the Metropolitan St. Louis Sewer District (the Plan), approved by the 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 the City of St. Louis or St. Louis County, only with powers and responsibilities limited to wastewater collection and treatment and stormwater management. 8 Annual Comprehensive Financial Report FY21 *Click arrow “About Us” to “Fiscal & Investor Relations” to “Annual Reports” Capital Improvement and Replacement Program *Click arrow “About Us”.  Click on “Fiscal & Investor Relations” to “Overview” to  “Capital Improvement Replacement Program (CIRP) Funding” Links to Supplement Detail Documents to the Budget Detail Individual Non-Major Fund Statements *Click arrow “About Us” to “Fiscal & Investor Relations” to “Budget” Strategic Business and Operating Plan FY 2023 – 2027 *Click arrow “About Us” to “Our Organization” to “Strategic Business & Operating Plan” The District’s Charter *Click arrow “About Us” to “Our Organization” to “Our Charter” *Hard Copy Readers can find Supplement Detail Documents to the Budget on the District’s Website at https://msdprojectclear.org/ 9 10 BUDGET MESSAGE The Executive Director's Budget Message provides an outline of the major assumptions relating to the annual budget, a general indication of the status of the District's finances and service levels, short and long-term goals and other significant information. 11 June 9, 2022 Board of Trustees Metropolitan St. Louis Sewer District 2350 Market Street St. Louis, MO 63103 Dear Trustees: The mission of the Metropolitan St. Louis Sewer District (MSD) is to protect the public’s health and safety, and the region’s water environment, by responsibly providing wastewater and stormwater management, even during a pandemic. In fulfilling our mission, we focus on delivering sound fiscal management and fostering a business-focused culture throughout the organization, while keeping our employees and customers safe. As MSD enters the 10th year of a multi-decade Consent Decree, we continue to build upon our progress over the past several years. In fiscal year 2023 (FY23), we will remain focused on several key areas of overall operations, while being fiscally responsive to the needs of the St. Louis region: STRATEGIC BUSINESS AND OPERATING PLAN – MSD’s management is committed to running this utility like a business. A key aspect of this effort is MSD’s Strategic Business and Operating Plan (SBOP). The FY23 SBOP is easily understood, the goals and resulting strategies are actionable, and the impact of the strategies is measurable. It is a business-focused blueprint for serving our customers now and into the future. It is a plan that puts the customers and the St. Louis community first. The SBOP goals are clear:  Deliver consistent, high-quality customer service,  Comply with all legal and regulatory requirements and schedules,  Minimize customer rate increases; and  Be accountable to the St. Louis community. The FY23 SBOP continues a philosophy that intimately links budgetary expenditures and strategic goals. Under this philosophy, the goals and strategies of the SBOP drive budgetary expenditures and succinctly support the SBOP’ s success. Further, the budgetary expenditures for the SBOP are business focused and ultimately serve the ratepayer. These goals build on the public input and feedback that the District has received. 12 BUDGET DEVELEOPMENT – Each department prepares a base budget that covers funding for its day-to-day operations, and an incremental budget for strategic activities that are to be implemented throughout the budget year. A detailed budget review process ensures an in-depth review of all budgetary requests. If fiscal constraints require reduced funding, the costs of strategic objectives are identified so that proper decisions can be made. BUDGET SUMMARY – As the Executive Director of MSD, I affirm that rates and charges as currently implemented will generate sufficient revenues to meet all expenditures as proposed in the FY23 budget, providing adequate operating liquidity as directed in MSD's Debt Management Policy. Furthermore, current rates and charges are adequate to ensure MSD’s compliance with all obligations as provided in the Master Bond Ordinance, adopted by the Trustees on April 22, 2004. The proposed FY23 operating budget includes $235.6 million for day-to-day operations, reflecting a $11.3 million or 5.0% increase over the FY22 budget. The total District budget for FY23 is $822.9 million, which includes the operating budget, Capital Improvement and Replacement Program (CIRP), and debt service. The proposed budget includes an increase of three full-time employees (FTE). Proposed expenditures for the FY23 are summarized as follows: Operating $235.6 million CIRP $418.5 million Debt Service $168.8 million TOTAL EXPENSE BUDGET $822.9 million Versus costs presented to and approved by the FY21 – FY24 Rate Commission, the operating budget for FY23 is projected to be 0.4% more than originally planned; and the CIRP budget for FY23 is projected to be 8.3% less than originally planned. The proposed FY23 budget for wastewater user charges is approximately $460.2 million, which is $24.9 million or 5.1% less than the amount presented and approved by the FY21 – FY24 Rate Commission. Relative to the Rate Commission approved projections, the debt service expenses will be higher as a result of $28.5 million in principal payments for refunded bonds, partially offset by lower annual principal and interest payments on the remainder of the District’s debt due to favorable financing terms. Total FY23 revenue bonds of $462.0 million represent a significant increase compared to FY22 of $119 million. The $119 million dollar proceeds from the issuance of revenue bonds may happen in June FY22. 13 KEY BUDGET FACTORS AND UPDATES PHASE II STORMWATER PERMIT – Per the Phase II Storm Water Management Plan, MSD has again committed significant resources to this important effort. Not only does this work help MSD meet its legal obligations as a stormwater permit holder and as the St. Louis Coordinating Authority, but it significantly reduces the overall compliance burden incurred by MSD’s co-permittees. Such an approach allows for a comprehensive and meaningful direction to our community’s Phase II Stormwater efforts. Effective November 1, 2021 – September 30, 2026, The Missouri Department of Natural Resources has re-issued a Phase II Stormwater permit to MSD, St. Louis County, and 59 county municipalities. Under the provisions of this permit, MSD is the St. Louis Coordinating Authority for our separate municipal stormwater sewer system. St. Louis County and the municipalities are co-permittees. MSD PROJECT CLEAR® – In 2007, the State of Missouri and the United States Environmental Protection Agency filed a lawsuit against MSD regarding overflows. The Missouri Coalition for the Environment later joined the lawsuit as an intervener. Throughout MSD’s service area, there are hundreds of points where a combination of rainwater and wastewater discharges into local waterways from the sewer system during moderate to heavy rainstorms. Sewer overflow points act as relief valves when too much rainwater enters the sewer system, and without them, communities could experience thousands of basement backups and/or extensive street flooding. In April 2012, the United States Federal Court approved an agreement known as a Consent Decree bringing the lawsuit to a close. This was amended by the United States District Court for the Eastern District of Missouri on June 22, 2018. The agreement calls for $6.0 billion (in 2018 dollars) in improvements to the wastewater system over the next two decades. The FY23 capital budget continues MSD’s ongoing execution of the Consent Decree. Knowing that robust and simplified communications would be critical to the success of the Consent Decree, MSD launched MSD Project Clear (MSDPC). MSDPC covers all Consent Decree activities and communications with stakeholders. Therefore, MSDPC is a multi-billion-dollar, multi-decade initiative to plan, design, and build system-wide improvements to address water quality and alleviate many wastewater concerns in the St. Louis region. MSDPC focuses on system-wide improvements to get the rain out, repair and maintain, and build system improvements. Projects range in scale from massive underground tunnels that carry the volume of stormwater needed in a growing region, to the disconnection of residential downspouts from the sanitary sewer lines, and rainscaping improvements to manage stormwater runoff. MSD Project Clear Updates – During calendar year 2021 MSD installed new sewers (13.7 miles) and rehabilitated (44.6 miles) over 58 miles of sewer. To date over the life of the consent decree, MSD has repaired, rehabilitated and/or replaced 1,220 miles of sewer. MSD has removed 17 SSOs (sanitary sewage overflow or mixed with stormwater, to a stream) in 2021, and has a total of 56 remaining. Since 2014, MSD has eliminated 93 constructed SSOs. 14 Total appropriations for consent decree compliance in 2021 was $187,360,000. Since 2012 MSD has spent $2.4 billion on consent decree compliance. RAINSCAPING / GREEN INFRASTRUCTURE – As part of the amendment of the Consent Decree, MSD also agreed to invest at least $20 million in green infrastructure in the Lemay Service Area/River Des Peres Watershed, reducing untreated overflow volume to the River Des Peres. This is in addition to the existing $100 million program within the Bissell Point watershed, which is predominantly served by the combined sewer system (sewers that collect rainwater and wastewater). The rainscaping program includes:  Up to $13.5 million ($1.5 million was spent in the pilot phase) is being used to demolish hundreds of abandoned, structurally condemned buildings that present a threat to public health and safety in the City of St. Louis. These demolitions reduce impervious surface area, which lessens the burden placed on the combined sewer system during moderate to heavy rainstorms. In FY21, approximately $3.5 million was spent. As of January 2022, nearly $630 thousand has been spent.  The Large-Scale Rainscaping Program continues to build partnerships with municipalities, schools, community development organizations, private developers, and others. These partnerships help identify joint opportunities to incorporate rainscaping into ongoing development and other activities in the Bissell Point watershed. The program plans to spend $8,000,000 in FY22 and the same amount in FY23.  The Small Grants Rainscaping Program encourages homeowners, neighborhood groups, and other organizations to apply for grants, recently increased to up to $4,000. These grants are designed to help MSD customers utilize raingardens, bioretention cells, pervious pavement, green roofs, and other rainscaping techniques at their home or business. Previously, the Small Grants Rainscaping Program relied on in-person meetings to explain the program requirements and answer questions. Now, interested participants can find the information in a series of videos that can be viewed online and take a quiz at the end to fulfill the program requirements. The program has planned to spend $800,000 in FY22, and $600,000 in FY23 because the River Des Peres area funds will be depleted by that time. WASTEWATER PROJECTS – In FY21, MSD planned 140 new or continuing wastewater projects, throughout the service area, totaling $338 million. 127 went to the Board, the rest were either cancelled or continued to FY22. In FY23, MSD has plans for 104 new or continuing wastewater projects, throughout the service area, totaling $394 million. These projects are funded primarily from the Sanitary Replacement Fund and bond sales. The work represents $9 million in continued projects and $384 million in new projects STORMWATER PROJECTS - In FY21, MSD planned 38 stormwater projects, totaling $20 million. 35 went to the Board, the rest were either cancelled or continued to FY22. In FY23, MSD tentatively plans 29 stormwater projects, including continuing projects from FY22, totaling $24 million. 15 BOND UTILIZATION & RATINGS – Since FY04, MSD has utilized voter approved bonds to lessen the steepness of necessary rate increases. While bonds must be repaid with interest, the dollars raised through their issuance has helped maintain the relative affordability of MSD rates. Proceeds from the issuance of bonds must be – and can only be – used to finance wastewater projects that are a part of MSD’s Capital Improvement and Replacement Program (CIRP). Through bond elections in 2004, 2008, 2012, 2016, and 2021 area voters have approved a total of $3.12 billion in bond authorizations. As of December 31, 2021, MSD has utilized $2.27 billion of the voter approved bond authorizations. Of that amount, $1.67 billion in bonds is outstanding. That leaves $853.1 million in bond authorization remaining to be utilized. On April 6, 2021, voters authorized an additional $500 million of bonds. Thanks to strong financial operations; an experienced management staff; strong management and planning capabilities for the CIRP; and strong voter support for the bond authorizations, MSD enjoys some of the highest bond ratings received by any sewer utility in the United States. The current ratings are: Moody’s - Aa1; Standard & Poor’s – AAA; Fitch – AA+. These strong ratings allow MSD to issue bonds at lower interest rates, which in-turn lowers the costs that are passed on to MSD customers. RATE COMMISSION – The independent MSD Rate Commission was established in 2000 through voter approved amendments to MSD’s Charter. Composed of 15 member organizations that represent a broad cross-section of MSD’s customers and the community it serves; the Rate Commission is designed to provide public input into how rates are set. By Charter, MSD staff is required to submit all rate proposals to the Rate Commission. In turn, the Rate Commission independently reviews rate proposals and makes recommendations to MSD’s Board of Trustees. Only under parameters defined in MSD’s Charter can Rate Commission recommendations be changed, modified, or rejected. In April 2021, voters authorized an additional bonding of $500 million. In FY23, the Rate Commission will convene to recommend rates for the FY 25 - 28 wastewater rates and to determine how stormwater rates will be presented to rate payers. DIVERSITY – Diversity efforts at MSD continue to focus on helping develop and grow minority- and women-owned business enterprises (MWBE); and to develop a diverse workforce from which contractors can hire workers for MSD projects. In FY21, minority firms performed $38.6 million in capital work, which represents 16.8% of MSD’s capital program. Women-owned firms performed $22.1 million in capital work, representing 9.63% of MSD’s capital program. Within the same timeframe, minority construction workforce participation was 196,699 hours, or 27.28% of the total hours worked on capital projects. Women construction workforce participation was 53,339 hours, or 7.4% of total hours worked on capital projects. For capital program professional services (design) with workforce participation goals, minorities represented 16.35% and women represented 36.61% of the workforce. As MSD continues the important work, we are doing to protect our environment and serve our St. Louis community, we strive to ensure that our efforts reflect the diverse citizenry that we serve. 16 In FY23, there are no major changes in service levels, fees, or taxes. We will continue to monitor the impact of COVID-19 on our revenue streams, and constantly scrutinize our business practices, deliver sound fiscal management, and be fully accountable to the public for the ways in which we spend their money. We will continue to improve our customer service levels and inform the community of our operations and needs. We will persist in addressing the health, safety, and environmental needs we face today and years into the future. Sincerely, Brian Hoelscher, P.E. Executive Director & Chief Executive Officer 17 FY23 BUDGET 18 BUDGET SUMMARY The Budget Summary section contains policies, processes, graphs and charts related to budget development. This section also contains information regarding staffing and a summary of the Capital Improvement and Replacement Program and the Strategic Business and Operating Plan. 19 Note:  "√" = Compliant "X" = Not Compliant Balanced Budget Policy Compliance Performance Against Policy Section 7.130 of the District’s Charter requires a balanced budget be submitted to The Board for approval. It mandates the following requirements: √  In no event shall the total amount of proposed expenditures for the budget year from any fund exceed the estimated revenues to be actually received plus any unencumbered balance or less any deficit estimated for the beginning of the budget year. √“Changes in Fund Balance” pages are included in this book to demonstrate compliance with this policy.  The Annual Budget must be balanced. All funds, Department operations and services, supported by the financial resources of the District, must function within the limits of these resources identified or available specifically to them. A balance must be struck between revenues and expenditures so that the public can realize the benefits of a strong and stable utility. By law, budgets cannot exceed available resources, defined as revenues generated in the current period added to balances carried forward from prior years. √“Source of Funding” pages are included in this book to demonstrate compliance with this policy. BUDGET & FINANCIAL POLICIES The Metropolitan St. Louis Sewer District's budget & financial policies set forth the basic framework for the District’s overall management of operations considering changing circumstances and conditions. These policies assist the decision-making process of the Board and provide guidelines for evaluating both current activities and proposals for future programs. The District regularly reviews and revises a comprehensive set of Financial Policies to govern the overall financial management and health of the District. 20 Note:  "√" = Compliant "X" = Not Compliant Balanced Budget Policy (continued)Compliance Performance Against Policy  Pursuant to the Metropolitan St. Louis Sewer District Charter, Section 7.130, not later than the fifteenth day of March in each year, the Executive Director will submit to The Board a budget for the ensuing fiscal year, an explanatory budget message, and a general appropriation ordinance conforming with such budget. The budget shall provide a financial plan for the budget year for all District and subdistrict funds. √The Board of Trustees received all of the required documents on March 10, 2022. Operating Budget Policies Compliance Performance Against Policy Historical levels of funding and expenditures shall be included in the budget to provide comparisons. Financial forecasting of future requirements shall be included to provide estimates of future financial and operating conditions. √“Changes in Fund Balance” pages are included in this book to demonstrate compliance with this policy. Per Section 7.150 of the District’s Charter Transfer of appropriations.Whenever approved by The Board, the Executive Director may transfer any unencumbered appropriation balances or portions from one classification of expenditure to another. √The District complies with this policy. BUDGET & FINANCIAL POLICIES (continued) 21 Note:  "√" = Compliant "X" = Not Compliant Operating Budget Policies (continued)Compliance Performance Against Policy Per Section 7.160 of the District's Charter,at any time during the budget year, upon recommendation of the Executive Director, The Board may, by ordinance, make supplementary appropriations if (1) the Executive Director estimates that such appropriations will not result in a deficit at the end of the budget, or (2) The Board shall adopt an ordinance or ordinances consistent with the requirements in Section 7.140 providing additional revenues and the Executive Director estimates that the amount to be actually received there from during the budget year will equal or exceed the amount of such supplementary appropriations. √The District complies with this policy. The District will maintain a budgetary control system to ensure adherence to the budget and will prepare regular reports comparing actual revenues and expenditures to budgeted amounts. √ The District’s accounting system has controls to ensure compliance with the budget. Managers receive daily reports that show financial performance against budget. Monthly reports comparing actual revenues and expenditures are prepared for Senior Management and highlights of these reports are presented quarterly to the Finance Committee of the Board of Trustees. Revenue Policies Compliance Performance Against Policy The District will seek to maintain a diversified and stable revenue system to minimize short-run fluctuations in any one revenue source. √ User Charge Fees are the District’s primary source of funding for wastewater operations. While some of these fees are also used for capital improvements, the District also uses revenue bonds to finance a large portion of the CIRP. BUDGET & FINANCIAL POLICIES (continued) 22 Note:  "√" = Compliant "X" = Not Compliant Revenue Policies (continued)Compliance Performance Against Policy The District will follow an aggressive policy of collecting revenues.√ The District uses a multi-layered approach to collecting past due accounts. It employs a series of automated reminder calls to accounts that are 25 days delinquent. Accounts that remain delinquent then progress to being placed with collection agencies, second placement agencies and eventually law firms for collection. The District will establish wastewater user charges and stormwater user charges, fees and tax rates at a level related to the full cost (operating, direct, indirect and capital) of providing the service. Voter approval is required to implement tax rate increases. √ The District is required to submit rate change proposals to a Rate Commission. During this rate setting process, the District’s rate consultant performed a detailed cost of service analysis using industry standard principles endorsed by the Water Environment Federation which allows the District to demonstrate that rates have been set at a level to recover the full cost, without excess, of providing service. The District will review wastewater fees and stormwater user charges, and fees annually to determine if the revenues support the cost of the service. Rate increases to generate needed revenues are required, per Charter Section 7.040, to be submitted to the District’s Rate Commission for review and recommendation to The Board. √ The District reviews fee revenue annually as part of the budget process to ensure it is adequate to meet the District’s balanced budget requirement. BUDGET & FINANCIAL POLICIES (continued) 23 Note:  "√" = Compliant "X" = Not Compliant Investment Policies Compliance Performance Against Policy The District will maximize the return on all cash available for investment without sacrifice of safety or necessary liquidity. √The District complies with this policy. The Secretary-Treasurer will develop and maintain a comprehensive, well-documented investment reporting system. This system will provide The Board with appropriate investment performance information. √ The Secretary-Treasurer reports monthly to the Finance Committee of The Board on the performance and make-up of the investment portfolio. Debt Policies Compliance Performance Against Policy The Board shall authorize and approve all debt issued for the purpose of financing portions of the District’s CIRP as well as debt that may be issued for the purpose of refunding any outstanding District debt. √ In the previous budget year, the District’s Board approved Ordinance 15746 authorizing and directing the issuance, sale, and delivery of Wastewater System Refunding Revenue Bonds through June 30, 2022. Under this Ordinance, the District executed a Forward Delivery Bond Purchase Agreement with Barclays Capital on 10/6/21 to refund a portion of the 2016C Revenue Bonds scheduled to close on 5/1/26. The 2022A refunding revenue bonds authorized under Ordinance 15350 will close 5/3/2022. The District will confine long-term borrowing to finance authorized capital improvement projects or to refund, on a current or advanced basis, outstanding debt obligations. Any bond issues to refund on an advanced basis would be taxable debt. √The District complies with this policy. BUDGET & FINANCIAL POLICIES (continued) 24 Note:  "√" = Compliant "X" = Not Compliant Debt Policies (continued)Compliance Performance Against Policy The District may issue long-term debt (general obligation or revenue bonds) where it is deemed that capital improvements should not be financed from current revenues. Long-term borrowing will not be used to finance current operations or normal maintenance. Long-term debt will be self-supporting and structured such that the weighted average maturity of the debt does not exceed the expected useful life of the capital project. √ The District’s use of revenue bonds during FY22 was consistent with use of debt outlined in the Rate Change Report accepted by The Board in October 2019. The proceeds from these bonds were used solely for capital improvements, where the assets gained have a useful life greater than the weighted average maturity of the debt. The District may issue (1) general obligation bonds to finance capital improvement projects that result in community-wide benefits (2) revenue bonds to finance capital improvement projects serviced from the net revenues from a particular enterprise, such as sewer service. √ The District’s use of revenue bonds in FY22 for capital improvement projects will be serviced with pledged revenues from sanitary sewer user charges. Issuance of general obligation bonds requires 57% approval of those voting at primary and general elections and a 67% approval at other elections. Issuance of revenue bonds requires simple majority approval of those voting. √ The District issued $100 million in new money revenue bonds (2022B) in FY22 requiring voter authorization. As of 6/30/2022, the District will have $253 million in remaining bonding authorization approved by voters through the 4/5/16 special election and $500 million in remaining bonding authorization approved by voters through he 4/6/21 special election. No general obligation bonds shall be issued in an amount, which together with existing indebtedness of the District or a subdistrict exceeds in the aggregate 5% of the value of all taxable tangible property in the District and its subdistricts. √The District has no outstanding general obligation bonds. BUDGET & FINANCIAL POLICIES (continued) 25 Note:  "√" = Compliant "X" = Not Compliant Debt Policies (continued)Compliance Performance Against Policy Any general obligation bonds issued under the District charter shall mature over a period not exceeding 20 years from the date contracted, while revenue bond maturities may extend to 30 years. √The District has no outstanding general obligation bonds. For the purpose of refunding, extending, or unifying the whole or any part of its valid bonded indebtedness, the District may issue refunding bonds not exceeding the principle amount of the outstanding indebtedness to be refunded and the accrued interest to the date of such refunding bonds. √ During FY21 the District has executed the 2021C refunding revenue bonds authorized under Ordinance 15350 on 5/3/2021. Short-term borrowing may be utilized as authorized by District Charter, Section 3.020(13), for the temporary funding of capital projects or for operational cash flow deficits subject to the following policies:  District may issue short-term debt when there is a defined and adequate repayment source.  Lines of Credit may be considered as an alternative to other short-term borrowing options if it is determined to be more cost-effective.  Other short-term debt, including commercial paper notes, may be used when it provides an interest rate advantage or as interim financing until market conditions are more favorable for long-term debt issuance. √The District did not utilize short-term borrowing in FY22. BUDGET & FINANCIAL POLICIES (continued) 26 Note:  "√" = Compliant "X" = Not Compliant Debt Policies (continued)Compliance Performance Against Policy Reserve Policies Compliance Performance Against Policy Operating Reserves for: FY21 – Actual – 155 FY22 – Projected – 190 days The District will maintain a Stormwater Emergency Fund with a minimum balance of $250,000 and a Wastewater Emergency Fund with a minimum balance of $500,000. √ The District is in compliance with these minimum balance requirements. Please refer to the “Changes in Fund Balance” tables for these funds in the Debt Service & Special Funds section of this book for exact fund balances. The District will maintain a Wastewater Backup Insurance and Reimbursement Fund with a minimum balance of $1 million dollars. √ The District is in compliance with this minimum balance requirement. Please refer to the “Changes in Fund Balance” tables for these funds in the Debt Service & Special Funds section of this book for exact balances. The District will maintain a General Insurance Fund with a minimum balance of $500,000 dollars. √ The District is in compliance with this minimum balance requirement. Please refer to the “Changes in Fund Balance” tables for these funds in the Debt Service & Special Funds section of this book for exact balances. √ Per Charter Section 3.020, the District may use short-term debt to provide for the borrowing of money in anticipation of the collection of taxes and revenues for the fiscal year. The amount of such loans shall at no time exceed 90% of the estimated collectible taxes and revenues for the year yet uncollected. The District did not utilize short-term borrowing in FY22. BUDGET & FINANCIAL POLICIES (continued) √ The operating reserve is a balance maintained in the General Fund, Construction Funds and Special Funds combined to accommodate fluctuations in annual revenues and expenditures. The District currently maintains a minimum fund balance of 60 days or 16.4% of the next year’s annual operating expenditures for working capital. 27 Note:  "√" = Compliant "X" = Not Compliant Reserve Policies (Continued)Compliance Performance Against Policy The Master Bond Document contains a 45-day reserve requirement. Operating reserves for: FY21 – Actual – 155 days FY22 – Projected – 190 days Property taxes levied by the District and other revenue received for construction, operations and maintenance in particular taxing subdistricts will be reserved for that use. √The District maintains separate funds to account for each of the taxing subdistricts it manages. Capital Improvement and Replacement Policies Compliance Performance Against Policy The District shall prepare a long-term plan for wastewater infrastructure projects to relieve backup complaints and/or for the correction of identified sanitary sewer capacity inadequacies and deficiencies and/or for the correction of bypasses and overflows. This plan shall include stormwater projects to prevent flooding and erosion threatening homes and property. This plan shall be used to develop a five-year CIRP and make all capital improvements accordingly. This five-year plan shall be updated annually. √ The Board of Trustees received the five-year CIRP on March 10, 2022. This plan is updated annually and is consistent with the District’s long-term plan for wastewater and stormwater projects. The Board adopts the CIRP as a planning document but does not appropriate the identified multi-year expenditures. These expenditures are legally authorized during the year at the time a fixed contract is awarded. √The District complies with this policy. Funds will be reserved to comply with the terms and conditions of the debt instruments used to finance capital improvement projects. √ BUDGET & FINANCIAL POLICIES (continued) 28 Note:  "√" = Compliant "X" = Not Compliant Capital Improvement and Replacement Policies (continued)Compliance Performance Against Policy Financial and Accounting Policies Compliance Performance Against Policy An independent audit shall be made of all accounts of the District at least annually by a certified public accounting firm that shall be engaged by The Board. √ CliftonLarsonAllen LLP issued their Independent Auditors’ Report for the financial statements as of and for the year ended June 30, 2021 on October 21, 2021. Financial reports will be submitted to The Board and District Staff.√The District complies with this policy. District financial information will be available through monthly financial statements, the Comprehensive Annual Financial Report and Annual Budget. √ The District prepares monthly financial statements and publishes quarterly statements on its website. The Annual Comprehensive Financial Report, the Annual Budget, and Popular Annual Financial Report are also available on the District’s website. The District will produce annual financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board (GASB). √ The District’s Annual Comprehensive Financial Report is prepared in accordance with GAAP as outlined by the GASB. Strategic and Operating Plan Policies Compliance Performance Against Policy The District’s Charter requires a continuing five-year strategic and operating plan (SBOP) to be adopted on an annual basis by the Board of Trustees. The SBOP shall state the District’s objectives for the succeeding five years and include targets by which to measure the District’s performance in meeting these objectives. √The Strategic and Operating Plan was completed for FY23-FY27. The District will maintain its physical assets at a level adequate to protect the District's capital investment and to minimize future maintenance and replacement costs. The District complies with this policy.√ BUDGET & FINANCIAL POLICIES (continued) 29 FINANCIAL STRUCTURE The District’s financial structure is organized based on funds, each of which is considered a separate accounting entity with fund specific balancing accounts that comprise its assets, liabilities, fund balances, revenues, and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The District uses both Governmental Funds and Proprietary Funds. The District uses a Modified Accrual method of budgeting, and both Modified Accrual and Accrual bases of accounting. In the table below, each fund type and group are identified. The purpose of the fund is stated, and the Budgeting Basis and Accounting Basis are also reported for each fund group. Modified Accrual Accounting or Budgeting recognizes revenues when they are  both available and measurable.  Most expenditures are recognized when an  obligation to pay is established, except in the case of interest on long‐term debt.   That interest expense is recognized when it is due.    Full Accrual Accounting is very similar to Modified Accrual Accounting.  Under Full  Accrual revenues are recognized when earned, and expenditures are recognized  when an obligation to pay is established.    However, the major ways in which Modified Accrual is different than Full Accrual is  the recognition of Capital expenditures.  Under the Modified Accrual method,  Capital expenditures are recognized when the entity has an obligation to pay.   Under the Full Accrual method, Capital expenditures are recognized over the life of  the asset.  30 FINANCIAL STRUCTURE (continued) Fund Type/Fund Title Purpose Budgeting Basis Accounting Basis GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Modified Accrual Modified Accrual Revenue Funds The Revenue Funds account for all wastewater user charges billed to customers. User Charge proceeds are recorded in the Revenue Funds and allocated to the various other funds to cover operation and maintenance costs and capital improvement expenditures. Modified Accrual Modified Accrual Stormwater Funds These funds were established to account for ad valorem taxes. Additionally, the Stormwater Regulatory Fund, Districtwide Stormwater Fund and the Stormwater Operations and Maintenance Funds are reported in this section and receive, or at one time received, property tax revenues. These funds are primarily stormwater dedicated funds for projects and stormwater operations and maintenance. Modified Accrual Modified Accrual Operations, Maintenance and Construction Improvement (OMCI) Funds These funds were established to account for ad valorem taxes. The primary source of revenue is generated from ad valorem tax levies. These are primarily stormwater dedicated subdistrict assessments which fund projects, stormwater operations and maintenance specific to each subdistrict’s geographic area. Effective in Fiscal Year 2017, tax levies for all OMCI subdistricts were suspended. Remaining fund balances will be used for maintenance and operation of facilities in the respective subdistricts until balances are depleted. However, in Fiscal Year 2021 Coldwater Creek Trunk Subdistrict, Maline Creek Trunk Subdistrict, Subdistrict No. 366 (University City Branch of River des Peres Stormwater Subdistrict), Subdistrict No. 367 (Deer Creek Stormwater Subdistrict) Subdistrict No. 369 (Sugar Creek Stormwater Subdistrict) and Subdistrict No. 454 (Seminary Branch of River des Peres) reinstated the tax levies to provide funding for stormwater capital improvements. In the FY23 budget Gravois Creek was reinstated. Modified Accrual Modified Accrual Construction Funds The Construction Funds are established to receive and disburse proceeds from revenue sources and restricted for construction of improvements to sewerage and drainage collection systems and treatment facilities. The Sanitary Replacement Fund is dedicated to sanitary projects. Modified Accrual Modified Accrual 31 FINANCIAL STRUCTURE (continued) Fund Type/Fund Title GOVERNMENTAL FUNDS (continued) Purpose Budgeting Basis Accounting Basis Debt Service Funds The Debt Service Funds are established for bond issues sold by the District. These funds provide for the accounting of receipt and disbursement of monies designated for payment of principal and interest and redemption of outstanding bond issues. A distinct fund is established for each of the District’s bond issues. Modified Accrual Modified Accrual Special Funds The Special Funds are established to: 1) account for and report financial resources related to the proceeds of specific revenue sources designated for specific purposes, or 2) account for and report financial resources related to funds required to maintain a minimum balance. The District’s current Special Funds consist of the following: 1. Improvement Fund – to account for the cost of any improvements and special tax bills issued for any improvement. 2. Water Backup Insurance and Reimbursement Fund – to account for customer water backup insurance claims resulting from over charged lines or blocked mains. 3. General Insurance Fund – to be used to pay the cost of workers’ compensation claims, property insurance, general liability, auto liability, flood insurance and all expenses (i.e., premiums, claims, claim expenses, claim recoveries, and claim accruals) related to these coverages. 4. Two Emergency Funds – to account for monies needed to address Wastewater and Stormwater emergencies. Such emergencies require immediate District response. Examples are sewer repairs and replacements to immediately address severe disruption in the operations and maintenance of the District, weather related disruption of District operations, and other disruptions of District services caused by dramatic unforeseen events. Modified Accrual Modified Accrual PROPRIETARY FUNDS Enterprise Funds Account for operations financed and operated in a manner like the private sector. The District utilizes these funds to convert the accounting records from a modified accrual to an accrual basis. The District performs this conversion so that it may produce financial statements as a single enterprise fund. These funds are not budgeted. Accrual 32 Strategic Business and Operation Plan Process (SBOP)  An overarching consideration during this process is the District’s ability to fund this plan within the constraints of the rate  revenue and other financing sources as determined by the Rate Commission process.  Directors Meet •Identify employees to assist with revisions to SBOP •Develop schedule •Each Strategy is assigned to one or more Directors •One Director is identified to compile the SBOP Directors Meet With Their Teams •Teams review objectives in current SBOP to determine.... •if any objectives will not be completed and need to be included in next SBOP •if any future year objectives in current SBOP should be in next SBOP •if any new objectives are needed based on stakeholder feedback Directors Compile •Each director compiles the objectives for their assigned strategy •Each compiled strategy is sent to the director in charge of combining the strategies into a single document •The draft SBOP is compiled Review •The Directors review the draft document and make any necessary changes •Managers and supervisors review the revised document and make recommendations for changes. •Revised SBOP is sent to Director of Finance for review and inclusion in the preliminary budget book. Public Hearing •The SBOP is presented as part of the budget presentation to the Board's Finance Committee •The SBOP is presented as part of the required public hearing •District ratepayers and other stakeholders are given an opportunity to provide feedback Finalized •If necessary, the SBOP is modified based on feedback from the Board, ratepayers or other stakeholders •The final SBOP is included in the District's final budget document and is posted on the District's website. 33 Strategic Business & Operating Plan FY23-FY27 MissionVision ValuesQuality Service Always To protect the public’s health, safety, and water environment by responsibly providing wastewater and stormwater management. Strategies 1. Inform, educate and partner to build stakeholder understanding. 2. Manage the District’s cost and revenues to optimize financial impacts. 3. Integrate and improve the District’s business processes. 4. Promote appropriate standards through proactive regulatory and legislative involvement. 5. Address customer and regulatory needs through a comprehensive infrastructure management program. 6. Create a learning and business- oriented culture based on competency and accountability. CUSTOMERS EMPLOYEES INNOVATION TEAMWORK INTEGRITY *Go to the Linked Documents page to get the link to view the entire Strategic Operating & Business Plan FY23-FY27, 34 Executive General Human Information Secretary Objectives Strategy Obj Description Engineering Director Finance Counsel Resources Technology Operations Treasurer % Completed 1 1.Execute Community Outreach and Engagement Programs 80% 2.Execute Outreach Programs for Elected Representatives & Other Municipal Officials 100% 3.Execute Diversity and Associated Outreach Programs 100% 2 1.Increase Collection of Delinquent Revenue 65% 2.Identify and Implement Cost Savings Initiatives 50% 3. Maximize Long-Term Financial Plans for District Needs 100% 3 1 Implement Information Governance Program That Meets the District's Records & Information Discovery, Compliance and Information Security Policies 70% 2 Integrate Asset Information Across Systems (Oracle, Maximo and GIS)40% 3 Implement Updated Laboratory Information Management System (LIMS)100% 4.Oracle EBS Upgrade 90% 5.Mobile Technology Standard 25% 4 Promote Appropriate Standards Through Proactive Regulatory & Legislative Involvement 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues  100% 2.Promote Appropriate Regulatory and Legislative Initiatives that Impact All Areas of District Operations 100% 5 Address Customer and Regulatory Needs Through a Comprehensive Infrastructure Management Program 1. Implement Stormwater Operating and Capital Improvement Program 100% 2.Implement Wastewater Operating and Capital Improvement Program 100% 3.Implement Asset Management Program 90% 4. Enhance Reliability of Information Technology Infrastructure 80% 5. Implement Smart Utility Technologies and Data Driven Solutions to Reduce Capital Costs and Increase Utility Performance.30% 6 Create a Learning and Business-Oriented Culture Based on Competency and Accountability 1.Increase Organizational Performance through Improved Communications 80% 2. Improve Organizational Effectiveness through Leadership Development and Succession Management 50% 3. Increase Individual Accountability & Job Satisfaction Through Continual Performance Coaching & Training 70% 4 Restructure a Recruitment Strategy that Promotes and retains a Talented and Diversified Workforce 80% 5 "Show Me MSD" - Business Partnership to Meet the Needs of the Communities that Support Them 20% 6. Identify and Implement Safety & Security Training to Support a Safe Work Environment 60%  Indicates Department Lead for Objective  0%-24% of goal completed 25%-75% of goal completed 76%-100% of goal completed Eliminated Note: Refer to Department Budgets for additional details Manage the District's Costs and Revenues to Optimize Financial Impacts Integrate and Improve the District's Business Processes STRATEGIC BUSINESS AND OPERATING PLAN FY21 OBJECTIVES AND ACCOMPLISHMENTS DEPARTMENTS IMPACTED Inform, Educate and Partner to Build Stakeholder Understanding 35 In the budget process, the business cases are a means of linking the Budget and the Strategic Business and Operating Plan. 02540 - Benefits & Compensation 04024 - Market Street Building 04051 - Billings & Collections Administration 08030 - Planning 08050 - Environmental Compliance Approved BC1 Human Resources Department Total BC2 BC1 Finance Department Total BC1 BC1 Engineering Department Total Total Description Outsource Payroll Functions Convert Contracted Positions Back to MSD Positions Billings & Collections Accounting and Analysis Linear Asset Management Decision Support Tool WIMS/PIMS replacement Strategy STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS STRATEGY 2: MANAGE THE DISTRICT’S COSTS AND REVENUES TO OPTIMIZE FINANCIAL IMPACTS STRATEGY 2: MANAGE THE DISTRICT’S COSTS AND REVENUES TO OPTIMIZE FINANCIAL IMPACTS STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective Objective 3: ORACLE EBS UPGRADE AND OUTSOURCED PAYROLL & BENEFITS Objective 2: IDENTIFY AND IMPLEMENT COST SAVINGS INITIATIVES Objective 1: INCREASE COLLECTION OF DELINQUENT REVENUE & Objective 2: IDENTIFY AND IMPLEMENT COST SAVINGS INITIATIVES Objective 3: Implement Asset Management Program Objective 6: IMPLEMENT INTEGRATED WASTEWATER OPERATIONS & COMPLIANCE SOFTWARE SOLUTION (WIMS/PIMS) 51011 Regular Salaries --$99,642 $58,071 $157,713 --- $157,713 51210 FICA Taxes --7,623 4,442 12,065 --- 12,065 51221 Health Insurance --22,248 10,197 32,445 --- 32,445 51222 Dental Insurance --360 165 525 ---525 51223 Life Insurance --146 67 213 ---213 51224 Disability --354 162 516 ---516 51225 Vision --250 115 365 ---365 51231 Pension Contributions-Defined Contribution Plan --12,800 5,867 18,667 --- 18,667 52300 Safety Footwear --400 -400 ---400 52330 Computer Supplies -----350,000 - 350,000 350,000 54520 Professional Service 250,000 250,000 ----200,000 200,000 450,000 Total Incremental $250,000 $250,000 $143,823 $79,086 $222,908 $350,000 $200,000 $550,000 $1,022,908 FTE Impact --2 1 3 -- - 3 FY23 Business Case Summary 36 Executive General Human Information Secretary Strategy Obj Description Engineering Director Finance Counsel Resources Technology Operations Treasurer Q1 Q2 Q3 Q4 2024 2025 2026 2027 1 Inform, educate and partner to build stakeholder understanding. 1.Execute community outreach programs and engagement programs. 2.Execute outreach programs for elected representatives and other municipal officials. 3.Execute diversity and associated outreach programs. 2 Manage the District's costs and revenues to optimize financial impacts. 1.Increase collection of delinquent revenue. 2.Identify and implement cost savings initiatives. 3.Maximize long-term financial plans for District needs. 3 Integrate and improve the District's business processes. 1. Implement Information Governance Program that meets the District's Records & Information Discovery, Compliance and Information Security Policies.  2.Integrate capital asset information across systems (Oracle, Maximo and GIS)   3.Oracle EBS upgrade and outsourced payroll & benefits. 4.Mobile technology strategy. 5.CIS System Replacement  6.Implement integrated wastewater operations & compliance software solutions (WIMS/PIMS) 7.Implement updated construction document management system (Prolog) 4 Promote appropriate standards through proactive regulatory and legislative involvement. 1.Participate in stakeholder groups to develop sound technical basis for regulatory issues. 2.Promote appropriate regulatory and legislative initiatives that impact all areas of District operations. 5 Address customer and regulatory needs through a comprehensive infrastructure management program. 1. Implement stormwater operating and capital improvement program. 2.Implement wastewater operating and capital improvement program. 3.Implement Asset Management Program. 4.Enhance reliability of Information Technology infrastructure. 5.Implement technologies and data driven solutions to reduce capital costs and increase utility performance. 6 Create a learning and business-oriented culture based on competency and accountability. 1.Increase organizational performance through improved communications. 2. Improve organizational effectiveness through leadership development and succession management. 3.Increase individual accountability and job satisfaction through continual performance coaching. 4.Implement safety and security training to support training to support a safe work environment.  Note: Refer to Department Budgets for additional details STRATEGIC BUSINESS AND OPERATING PLAN FISCAL YEARS 2023 - 2027 OBJECTIVES DEPARTMENTS IMPACTED Years of Additional FY23 Milestones Indicates Department Lead for Objective Start Finish 37 Category Subject FY19 Performance FY20 Performance FY21 Goal FY21 Performance FY22 Goal Department Customer Service Overall Quality of Service 8.0 8.0 ≥8 out of 10 8.0 ≥8 out of 10 Operations On-Time Emergency Response (1)89%82%> 90%86%> 90%Operations Mission Treatment Plant Compliance Rate (2)100%100%100%99.9%100%Operations Sewer Overflows-Dry Weather 215 177 <162 annually (2.5 per 100 miles of pipe)167 <162 annually (2.5 per 100 miles of pipe)Operations Maintenance Related Backups 267 296 <424 annually (<1 in 1000 customers)283 <424 annually (<1 in 1000 customers)Operations CIRP Schedule Compliance (3)82%77%>80%82%>80%Engineering Financial CIRP Budget Performance (4)82%78%>95%92%>95%Engineering Organizational Effectiveness Non-Capital Competitive Purchasing (5) 99%99%>95%99%>95%Finance Note: (1)Performance is measured by 4-hour window for emergency response. If our response time is longer than 4 hours we do not meet our goal. Note: (2) Note: (3) Note: (4) Note: (5) Performance Meets or Exceeds FY21 Goal Performance Does Not Meet FY21 Goal Competitive vs. Non Competitive Spend as a Percentage of Total Year to Date at June 30. Our compliance rate is measured against the requirements outlined in our NPDES Permits which are issued by the Department of Natural Resources. The permits have a number of measurements that we must do to insure our treatment plants are in compliance. There are hundreds of tests we must perform on daily, weekly, and monthly basis throughout the year. Our goal is 100% compliance. If we fail a test for some reason, it lowers our percentage. METROPOLITAN ST. LOUIS SEWER DISTRICT PERFORMANCE SCORECARD As of June 30, 2021 The planned Board Introduction month for each project in the CIRP is locked in June of the previous fiscal year. Performance is then measured by % of projects that were included on the Board agenda for introduction by that date (on time or earlier). Total appropriations vs. budgets for the projects scheduled each month per the Board Introduction Schedule. 38 ‐$100,000,000 $100,000,000 $300,000,000 $500,000,000 $700,000,000 $900,000,000 $1,100,000,000  FY16  FY17  FY18  FY19  FY20  FY21  FY22  FY23  FY24  FY25 10 Years of Revenues and Expenses O&M Expense Debt Expenditures Capital Improvement Program  Revenue FY16‐FY21 Actuals  ‐ FY 22 Forecast ‐ FY 23‐ FY25 Projected 39 BUDGET PROCESS FY23 The District’s SBOP is the key to the development of the Annual Budget. The SBOP process begins in July when all Departments are given the opportunity to reassess goals, strategies and objectives and the means for accomplishing them. The budget serves as the tool to communicate the District’s long-term plans and policies to the public, details the costs of services and programs and becomes the plan to accomplish the District’s goals and objectives during the next fiscal year. The budget process begins in early October with the projection of revenues (wastewater and stormwater user charges, investment & other income). District- wide imperatives and budgetary parameters are established by Executive Management and The Board of Trustees (“The Board”). The imperatives for this fiscal year include: IMPERATIVES FOR FY23 STRATEGIC BUSINESS PLAN STRATEGY OBJECTIVE Base budgets, except for salaries, wages, and benefits, should remain at FY22 levels. All increases to current service levels should be delayed if possible. Any proposed cost increases to accounts other than salaries, wages, and benefits need to be justified as part of base budget submittals. 2 2 All business cases will require extended justification as to why new initiatives need to be done this year and cannot wait until future budget requests. 2 2 No planned acceleration of Consent Decree projects. Acceleration of any projects during fiscal year only allowed after fiscal review by senior management. 5 2 Department Directors and Managers begin budget development by providing an updated expenditure forecast for the remainder of FY22. A two step, zero- based budgeting method is used to develop the FY23 budget. This method requires written justification as to need and purpose for all expenditures. The first step is the preparation of a base budget that reflects the ongoing day-to-day operations of each Department. The second step is the preparation of an incremental budget, which reflects costs associated with initiatives outlined in the SBOP. Throughout the budget development process, departmental staff is required to evaluate programs and identify possible changes in services and staff positions. The Department Directors forward their proposed base budgets to the Director of Finance for analysis. Cost benefit business cases are used to support incremental budgets submitted to the Executive Director for review. The base budgets and requests for incremental funding are then compiled and further analyzed to ensure the preliminary budget meets the District’s needs, priorities, goals and objectives without exceeding forecasted resources. Any unresolved issues are presented to the Executive Director for a final decision. The recommended budget reductions and adjustments are then incorporated. Per Charter a preliminary budget is delivered to the Board for review by March 15th. A series of budget presentations are given to the Board’s Finance Committee to allow for more in-depth review by the Trustees. 40 BUDGET PROCESS FY23-continued The Board’s recommended budget adjustments are incorporated into a final budget document. A proposed financial plan and an Executive Summary of the budget are communicated to the general public in the form of a public hearing. The public hearing is advertised in the newspapers at least three weeks before the scheduled hearing in order to allow sufficient time for the public to review and ask questions. The Board is then required to adopt the budget, tax and rate ordinances (if applicable) consistent with the District’s Charter and state law. The District’s fiscal year begins on July 1st. Departments are accountable for budgetary control throughout the fiscal year. Expenditure patterns are examined and compared to budget plans with variances reported. Responses to significant variances are required quarterly from each Department and reviewed by the Director of Finance. Budget status is reviewed with senior staff monthly and is reported quarterly to The Board at its monthly Finance Committee meeting. The Director of Finance reviews the District’s monthly financial statements and budget variance report ensuring the District’s actual revenue is sufficient to support budgeted expenditures. Forecasted expenses are also compared to budget. The District’s operating budget is adopted at the Department level as detailed in the District’s Budget Ordinance. Any transfers between Funds require Board approval. Budget transfers are made on an as-needed basis. Expenditures for the CIRP are presented on an appropriated basis as opposed to a cash flow basis. The District’s accounting procedures require an adequate budget to pay for planned Ordinances in the period in which an Ordinance is appropriated. All outstanding CIRP encumbrances remain open until a project is completed. There were no major changes from FY22 compared to FY23 in service levels, wastewater user charges fees, or taxes. Revenue bonds increased from FY22 by $343 million totaling $462 million in FY23 budget. A budget is developed for both revenues and expenses: 1. Revenue expectations are developed from trend analysis, incorporating upcoming rate increases and significant economic and policy factors.  FY23 Total Revenue: (shown in million $) Wastewater User Charges: $460.2 Revenue Bonds: 462.0 Taxes: 45.2 Investment and Other Income: 11.3 Increase of Fund Balances: -155.8 TOTAL DISTRICT REVENUE: $822.9 2. Operating Expenses are developed using a zero-based budgeting method with written justification for all expenditures. The CIRP is developed by the District’s Engineering Department based on the revenues forecasted for the coming year. Projects prioritized for the coming year are outlined in a supplemental report in conjunction with the Operating Budget. Debt service for the District’s existing and forecasted use of bonds is developed by the District’s Secretary-Treasurer’s Department and incorporated into the Operating Budget.  FY23 Total Expense: (shown in million $) Operating Budget: $235.6 CIRP: 418.5 Debt Service: 168.8 TOTAL DISTRICT EXPENSES: $822.9 41 7/1/222/17/22 4/5/2211/2/21 12/22/21 2/1/22 MSD Calendar for Fiscal Year 2023 Budget Development Presentation of  Proposed Budget  and CIRP to Finance  Committee Introduce Budget , Tax,  and Rate Ordinances.   Hold Public Hearing on  Expense Budget, CIRP  and Taxes. Adopt Budget  and Tax  Ordinance Begin Fiscal  Year 2023 Publish Notice of Public  Hearing on Budget, CIRP, Taxes  and User Charges Departmental  Budget  Requests  Submitted to  Budget Office Executive  Director’s Review  of Draft  Consolidated  Budget Distribute FY23  Budget Packets  and Provide  Training Budget Analysis by  Director of Finance  and Budget Office  Completed 6/9/223/10/22 4/18/22 5/12/22 Submit preliminary  Budget, Budget  Message and  Appropriation  Ordinance to the  Board of Trustees 42 FY23 Total Revenue Preliminary Budget Book Net Change Final Budget WW User Charges (1)$460.2 $0.0 $460.2 Revenue Bonds 573.0 (111.0)462.0 Taxes 45.2 0.0 45.2 Investment Income and Other 11.3 0.0 11.3 Fund Balances -256.1 100.3 -155.8 Total District Revenue $833.6 $(10.7)$822.9 FY23 Total Expenses Operating Budget $235.6 $0.0 $235.6 Debt Service 166.2 2.6 168.8 CIRP 431.8 (13.3)418.5 Total District Expense $833.6 $(10.7)$822.9 (1) Includes sewer service charges from the Wastewater Revenue Fund net of the bad debt provision and late charges from the General Fund. 43 Type of Project Preliminary Revised Change Preliminary Revised Change Wastewater Engineering 53 52 -1 53.2$ 53.5$ 0$ Wastewater Construction 46 50 4 330.6 333.3 (3) Stormwater Engineering 9 9 0 6.9 6.9 - Stormwater Construction 20 19 -1 16.8 17.2 (0) New Project Appropriations Subtotal:128 130 2 410.5$ 407.7$ (3)$ Wastewater Continued 6 3 -3 19.5$ 9.1$ (10)$ Stormwater Continued 1 1 0 0.2 0.2 - Continued Project Appropriations Subtotal:7 4 -3 19.7$ 9.3$ (10)$ Project Appropriation Totals:135 134 -1 430.3$ 417.0$ (13)$ The above does not include the General Fund Project of $1.5 million dollars for grand total of $418.5 million FY23 CIRP Number Budget Revised Program Summary $s in millions 44 $s in millions Taxes $45.2 5.5% User Charges $460.2 56.0%Capital Improvement & Replacement Program $418.5 50.9% Operating $235.6 28.6% Sources and Uses of Funding Debt Service $168.8. 20.5% TOTAL FY23 BUDGET $822.9 Revenue Bonds $462.0 56.1% Increase Fund Balance $(155.8) (19.0)% Where does the money come from?Where does the money go? Investment and Other Income $11.3 1.4% 45 WW User Charges (1) Revenue Bonds Taxes Investment Income & Other Fund Balances (2)Total Operating $195.7 $0.0 $23.8 $5.8 $10.3 $235.6 Debt Service $136.5 $28.5 $0.0 $0.4 $3.4 $168.8 CIRP $128.0 $433.5 $21.4 $5.1 -$169.5 $418.5 Total $460.2 $462.0 $45.2 $11.3 -$155.8 $822.9 1) Included in sewer service charges from Wastewater Revenue Fund net of the bad debt porvision and late charges from General Fund. 2) A positive number represnts the use of fund balance as a revenue source while a negative means MSD is increasing to Fund Balance. $23.8 $3.4$21.4 $5.1 $5.8 $10.3 $28.5 46 FY23 SOURCES OF FUNDING USER CHARGES The District has a Wastewater User Charge which is recorded in the Wastewater Revenue Fund. A portion of the revenue is transferred to the General Fund to cover daily operating, maintenance and replacement costs; a portion is allocated to the Water Backup Insurance and Reimbursement Fund to provide assistance to homeowners with damages resulting from blocked main and basement backups, a portion is allocated to the General Insurance Fund to provide for workers’ compensation, property, general liability and other insurance expenditures, and a portion is allocated to the Debt Service Funds to meet debt service requirements on outstanding bonds issued for capital improvements. The remainder of the revenue is transferred to the Capital Improvement and Replacement Fund for construction projects and emergencies. A chart detailing the flow of funds is also included in the following pages of the Budget Summary section. Wastewater: Residential customers with metered water service will pay a billing and collection charge, a system availability charge and a volume charge based on the most recent winter quarter water usage. Unmetered customers will pay the same charges except for a volume charge. Unmetered volume is based on housing attributes such as the number of rooms and plumbing fixtures. Non-residential customers will pay the same charges plus an additional compliance charge. Some non-residential customers will pay extra strength surcharges for the treatment of wastewater containing suspended solids, biochemical oxygen demand or chemical oxygen demand exceeding normal wastewater strengths. User Charges in the Wastewater Revenue Fund for FY23 is estimated at $459.3 million. Other User Charges: Other User Charge revenue such as Late Fees, Lien Interest, Refunds and Account Adjustments are estimated to be $0.95 million. This amount is net of a provision for doubtful accounts, or past-due customer bills that might go uncollected. TOTAL WASTEWATER USER CHARGE REVENUE: The District’s total FY23 User Charge revenue is estimated to be $460.2 million. The District provides an assistance program to customers who meet the eligibility requirements of income, age or disability. Those customers who are eligible will receive a credit equal to 50% of their sewer service charge bill. A composite schedule of the budgeted Wastewater and Stormwater user charge revenue by customer class can be found in the pages of the Revenue Funds Section. 47 FY23 SOURCES OF FUNDING-continued REVENUE BONDS The District plans to receive approximately $433.5 million in bond and loan proceeds in FY23. These proceeds are expected to be derived from $278 million from the Water Infrastructure Finance and Innovation Act (WIFIA) and $155.5 million from the State of Missouri SRF for capital improvement projects. Additional bond proceeds of $23.0 million from Proposed Direct Purchase of Refunding Bonds will be used to refund 2013B Wastewater System Senior Revenue. There are premiums associated with the proposed direct purchase in the amount of $5.5 million. Prior to a November 2000 Charter change, the District was unable to issue revenue bonds as a source of funding its CIRP. Almost all the District’s capital expenditures were funded from annual cash flow, known as Pay-As-You-Go (PAYGO) funding. Continuation of a PAYGO approach as the District’s sole funding option would have required significant rate increases to generate the necessary annual capital funding. PAYGO is the lowest cost funding source due to its avoidance of the financing and interest costs associated with long term debt. The primary negatives associated with PAYGO funding include: 1) the short-term impact on customer rates, and 2) the mismatch between the cost and benefit of the District’s capital infrastructure to the users. In the case of capital projects that have a long-life expectancy, PAYGO funding causes today’s customers to pay for an asset that will be used by tomorrow’s customers for many years. Financing a portion of the capital program with bonds is an excellent way to distribute the cost of long-term assets to the future customers who will benefit from the use of the assets and lessen the impact of short-term rate increases. It is typically considered good public policy to allocate a portion of the cost of long-term assets to future users by the use of debt. At the same time, prudent fiscal policy would not allow 100% debt financing. The goal is to strike the correct balance between the distribution of the cost of long-term assets to the users that benefit from them and maintaining healthy financial ratios. 48 FY23 SOURCES OF FUNDING-continued AD VALOREM TAXES The District’s budget for tax revenue in FY23 totals $45.2 million. During FY23 all taxpayers within the District’s boundaries will be assessed a $0.0169 (one point sixty-nine cents) per $100 of assessed valuation tax levy to pay primarily for stormwater services required by State and Federal regulations. Except for taxpayers living in certain levy districts, all taxpayers within the District will also be assessed a $0.0872 (eight point seventy-two cents) per $100 of assessed valuation tax levy to pay for the District’s non-regulatory stormwater costs. This tax revenue of approximately $35.4 million is recorded in the Stormwater Regulatory Fund ($5.9 million) and the Districtwide Stormwater Fund ($29.5 million) of the District. Other property tax rates were suspended within the District’s boundaries beginning in FY17. All subdistrict taxes previously collected within these boundaries are held in the OMCI fund balances and must be used primarily for stormwater capital improvements and stormwater operating expenses within the specific subdistrict boundaries in which the taxes were collected. However, in FY21 the District reinstated six of the tax levies and one additional in FY22 totaling $9.8 million in FY23 to provide funding for stormwater capital projects for Coldwater Creek Trunk Subdistrict in the amount of $2.0 million, Maline Creek Trunk Subdistrict in the amount of $0.7 million, Subdistrict No. 366 (University City Branch of River des Peres Stormwater Subdistrict) in the amount of $1.0 million, Subdistrict No. 367 (Deer Creek Stormwater Subdistrict) in the amount of $4.0 million, Subdistrict No. 369 (Sugar Creek Stormwater Subdistrict) in the amount of $0.3 million, Subdistrict No. 454 (Seminary Branch of River des Peres) in the amount of $0.3 million and the newly added Gravois Creek Trunk Subdistrict in the of $1.5 million. The detailed taxes rates are included in the tax ordinance section. 49 FY23 SOURCES OF FUNDING-continued INVESTMENT INCOME & OTHER FEES Investment Income and Other Fees will fund $11.3 million of the Budget. Investment income of approximately $5.3 million is anticipated. Connection fees are expected to generate $3.4 million based on a flat rate per connection to the sanitary system. These revenue estimates are based on previous experience, current economic conditions and anticipated new home construction. Miscellaneous income of approximately $2.0 million is expected, $1.3 million relating to court awarded court costs and attorney fees, reimbursement of district costs totaling $153 thousand, $47 thousand pertaining to forfeited construction deposits, $15 thousand for sale of scrap and the remainder consists of $451 thousand of miscellaneous income. Rental income is expected to generate $0.4 million. Finally, $0.2 million is expected to be generated from the sale of property. FUND BALANCES These sources of funding will result in a fund balance increase of $155.8 million during FY23. 50  $‐  $200,000  $400,000  $600,000  $800,000  $1,000,000  $1,200,000 Fund Balance Interest, Fees, Misc. Taxes Revenue Bonds Stormwater User Charges Wastewater User Charges CONSOLIDATED REVENUE SOURCES Revenue Trends ($s in thousands) This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for FY24 and FY25.   The District normally submits a Rate Change Proposal to the Rate Commission every four years. The analysis required to complete this proposal includes impacts  of historical tends, the local economy,  housing development and projected  inflation factors.  A Rate Commission Report, accepted by the Board of Trustees,  recommended a four‐year Wastewater User Charge rate with annual increases from FY21 through FY24.  Revenue growth from rate increases has been  mitigated by a declining trend in billed volumes resulting in a  compounded annual wastewater revenue growth rate of approximately 2.2% from FY20 to FY24.   Taxes which fund MSD's stormwater services fluctuate little from year‐to‐year and are expected to be  approximately $45.2 million in FY23.  For FY25, the District  will go back to the Rate Commission with a rate change proposal in February of 2023.  For now, the FY24 approved rates are used to project FY25 revenue. In April 2016, the voters approved the authorization of $900 million in bonds and voters approved another $500 million authorization  in April 2021.  The  District continues to utilize that authorization  with $553  million remaining at the end of May FY22.  In FY20, bond proceeds of $352 million were utilized against  the April 2016 authorization.  Planned issuances in FY22 ‐ FY25 will further utilize the April 2016 and portion of April 2021 authorizations.  It is estimated an  authorization of $0 will remain after FY25.  The proposed bond proceeds take into consideration the required CIRP, the cost of issuance, and the rate of return. Interest, fees, and miscellaneous includes interest on investments, connection and other fees.  The impact of these revenue sources does not change significantly  in most years.  Finally, Fund Balance appears on the graph as a revenue source in years where fund balance declines as it is used to fund operations, debt service,  or the CIRP. 51 Projected Revenue WASTEWATER USER CHARGE Metered Single Family $201,926,876 Unmetered Single Family 51,895,348 Metered Multi-Family 46,517,159 Unmetered Multi-Family 28,350,253 Non-residential 122,298,088 Extra Strength Surcharges 6,636,607 Customer Assistance Program 1,655,260 Subtotal WASTEWATER USER CHARGE $459,279,591 GENERAL FUND USER CHARGES Bad Debt Provision ($5,735,040) Adjustments, Late Charges & Other 6,683,222 $948,182 USER CHARGE REVENUE $460,227,773 METROPOLITAN ST. LOUIS SEWER DISTRICT Projected User Charge Revenue FY23 BUDGET COMPOSITE Residential $330.3M 72% Non Residental $128.9M 28% Wastewater User Charge Revenue Dollars Total Revenue $459.3M Residential 405,280 94% Non Residental 24,001 6% Wastewater User Accounts Total Accounts 429,281 The pie chart shows the distribution of revenue and accounts expected to be billed between residential and non-residential accounts. The smaller class of accounts (non-residential) contributes a proportionately greater amount of the user charge revenues. 52 FY23 MSD FLOW OF USER CHARGE FUNDS MSD has two separate and distinct self-supporting services: wastewater service and stormwater service. In order to recover the cost of providing these services in a fair and equitable manner, there are two distinct pricing methods. The wastewater service charge is based on the volume and strength of wastewater discharged into the sewer. The stormwater services are paid for with ad valorem taxes instead of a user charge. Wastewater User Charges are recorded in the Wastewater Revenue Fund. The details of the Wastewater revenue can be found in the revenue section of this document. The entire balance of this fund is transferred each month to other function-specific funds. From the Wastewater Revenue Fund, the largest amounts are allocated to the General Fund for the operation and maintenance of existing facilities and the Sanitary Replacement Fund for the replacement of existing facilities. Smaller amounts are transferred to the Wastewater Emergency Fund to cover the cost of emergency work that may occur during this fiscal year, the Water Backup Insurance & Reimbursement Fund to cover the cost of water backup insurance and reimbursement, the General Insurance Fund to cover the cost of all other insurance premiums and related costs, and the Debt Service Fund to cover the cost of principal and interest on revenue bonds. The overall budget for the General Fund, whose resources are only partially made up of the sewer service charge allocation from the revenue fund, can be found in the General Fund section. The proposed budget for the Sanitary Replacement Fund can be found in the Construction Funds section. The revenue derived from the applicable user charge is listed as an Interfund Transfer in the column labeled FY23 BUDGET. The pages immediately following the table show the projects currently planned for that fund. The proposed budget for the Wastewater Revenue Bond Service Fund can be found in the Debt Service Funds section. The revenue transferred from the Wastewater Revenue Fund is listed as an Interfund Transfer in the column labeled FY23 BUDGET. The proposed budget for the Water Backup Insurance and Reimbursement Fund, the General Insurance Fund, and the Wastewater Emergency Fund can be found in the Special Funds section. The revenue transferred from the Wastewater Revenue Fund is listed as an Interfund Transfer in the columns labeled FY23 BUDGET. Please refer to the following chart that graphically depicts the MSD flow of funds. 53 Wastewater Revenue Fund $459,279,591 GENERAL FUND $180,795,582 $125,000,000 SANITARY REPLACEMENT FUND $3,000,000 WASTEWATER EMERGENCY FUND $3,000,000 WATER BACK- UP INSUR. & REIMB. FUND MSD Flow of User Charges FY23 $11,000,000 GENERAL INSURANCE FUND $136,484,009 DEBT SERVICE FUND 54 Wastewater Revenue Fund $475,048,501 GENERAL FUND $164,912,614 $150,000,000 SANITARY REPLACEMENT FUND $5,000,000 WATER BACK- UP INSUR. & REIMB. FUND MSD Flow of User Charges FY24 $10,000,000 GENERAL INSURANCE FUND $145,135,887 DEBT SERVICE FUND 55 Wastewater Revenue Fund $471,984,219 GENERAL FUND $194,807,445 $105,000,000 SANITARY REPLACEMENT FUND $5,000,000 WATER BACK-UP INSUR. & REIMB. FUND MSD Flow of User Charges FY25 $10,000,000 GENERAL INSURANCE FUND $157,176,774 DEBT SERVICE FUND 56 FY23 MONTHLY USER CHARGE STRUCTURE WASTEWATER USER CHARGE RATES (Monthly) FY24 FY23 FY22 FY21***FY20 Unmetered: Billing, Collection & System Availability Charge $29.29 $28.26 $27.31 $26.40 $26.35 Per Room 3.29 3.17 3.06 2.95 2.89 Per Water Closet 12.23 11.80 11.40 11.02 10.72 Per Bath 10.20 9.84 9.51 9.19 8.93 Per Separate Shower 10.20 9.84 9.51 9.19 8.93 Metered--Residential and Non-Residential: Billing, Collection & System Availability Charge $29.29 28.26$ $27.31 $26.40 $26.35 Volume Charge - $/100 Cubic Ft.5.55 5.35 5.17 5.00 4.87 Metered--Non-Residential: Compliance Charge Tier 1 $5.85 $4.71 $4.55 $4.44 $3.14 Compliance Charge Tier 2 67.67 65.80 62.64 62.16 62.61 Compliance Charge Tier 3 144.98 140.99 136.37 133.20 137.75 Compliance Charge Tier 4 193.30 187.98 181.83 177.60 203.49 Compliance Charge Tier 5 241.63 234.98 227.29 222.00 266.10 Extra Strength Surcharge - $/Ton: Suspended Solids over 300 mg/l*$329.43 $320.36 $309.88 $302.67 $283.87 BOD over 300 mg/l 884.78 860.43 832.28 812.94 708.56 COD over 600 mg/l 442.40 430.22 416.14 406.47 354.30 *mg/l: milligrams per liter *** Rates are effective October 1, 2020. Note: In FY23, St. Louis MSD Single Family bill for 10 Ccf's will be $81.76. Source: https://customerservice.neorsd.org/s/sewer‐rates‐and‐stormwater‐fees    https://publicworks.baltimorecity.gov/Water‐Bill‐Rates‐and‐Fees  https://www.sandiego.gov/public‐ utilities/customer‐service/water‐and‐sewer‐rates/sewer  https://www.nashville.gov/Water‐ Services/Customers/Rates.aspx https://www.saws.org/service/water‐sewer‐rates/residential‐water‐service/   https://www.kcwater.us/  Rates based on 10 CCF. Monthly Average for a Typical Single Family Residence Based on 10 CCF’s A cost of service model is used to project revenues and revenue requirements for four fiscal years, recognizing anticipated growth in number of customers and increased wastewater flows throughout the service area. The study of revenue requirements recognizes projected operation and maintenance expense, capital improvement requirements met from revenues, principal and interest payments on current and proposed revenue bond issues, and recommended reserve fund requirements. Allocated costs of service are developed for each class of customer and type of service based on considerations of utility revenue needs and projected customer service requirements. User charge rate adjustments are designed for customers in accordance with allocated costs of service and local policy and practical considerations. Residential Wastewater User Charge St. Louis and Other Municipalities $116.20 $100.93 $79.01 $75.10 $69.26 $51.31 $49.36 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 Cl eveland Balt im ore St. L o ui s Ka nsas Ci ty Na shvi ll e San D ieg o S an A nt onio 57 FY24 FY23 FY22 FY21***FY20 WASTEWATER USER CHARGE RATES (Annual) Unmetered: Billing, Collection & System Availability Charge $351.48 $339.12 $327.72 $316.80 $316.20 Percent of Per Room 39.48 38.04 36.72 35.40 34.68 Total User Per Water Closet 146.76 141.60 136.80 132.24 128.64 Customer User Charge Charges Per Bath 122.40 118.08 114.12 110.28 107.16 Per Separate Shower 122.40 118.08 114.12 110.28 107.16 InBev Anheuser-Busch $5,329,515 1.27% Metered--Residential and Non-Residential:CITY OF ST LOUIS $2,088,772 0.50% Billing, Collection & System Availability Charge $351.48 $339.12 $327.72 $316.80 $316.20 Sigma-Aldrich $1,839,263 0.53% Volume Charge - $ per 100 Cubic Feet 5.55 5.35 5.17 5.00 4.87 Missouri-American Water Co. $1,728,302 0.41% Metered--Non-Residential: Compliance Charge Tier 1 $70.20 $56.52 $54.60 $53.28 $37.68 Washington University $1,688,185 0.40% Compliance Charge Tier 2 812.04 789.60 751.68 745.92 751.32 Compliance Charge Tier 3 1,739.76 1,691.88 1,636.44 1,598.40 1,653.00 GKN Aerospace N America Inc. $1,064,644 0.25% Compliance Charge Tier 4 2,319.60 2,255.76 2,181.96 2,131.20 2,441.88 Compliance Charge Tier 5 2,899.56 2,819.76 2,727.48 2,664.00 3,193.20 Jost Real Estate LLC $1,064,622 0.25% Extra Strength Surcharge-$/Ton:The Boeing Company $1,051,546 0.25% Suspended Solids over 300 mg/l*$3,953.16 $3,844.32 $3,718.56 $3,632.04 $3,406.44 BOD over 300 mg/l 10,617.36 10,325.16 9,987.36 9,755.28 8,502.72 BJC Health System $1,034,101 0.25% COD over 600 mg/l 5,308.80 5,162.64 4,993.68 4,877.64 4,251.60 * ml/g: milligrams per liter St. Louis University $948,931 0.23% STORMWATER SERVICE CHARGE (Annual)Total Top Ten by User Charges $17,837,881 4.24% Per Single Family/Commercial Account $0.00 $0.00 $0.00 $0.00 $0.00 Total User Charges FY21 $420,781,206 Per Unit of Multi-Unit Residential Account 0.00/unit 0.00/unit 0.00/unit 0.00/unit 0.00/unit *** Rates are effective October 1, 2020. Ten Largest Customers' User Charges For the Year Ended June 30, 2021 MSD ANNUAL USER CHARGE STRUCTURE 58 Bond Date Series Type Refunding - Not Applied Against Authorization 2/1/2004 8/1/2008 6/1/2012 4/1/2016 (1) Grand Total May-04 2004A Wastewater System Refunding Bond 175.0$ 175$ May-04 2004B State Revolving Loan - Subordinte Revenue Bonds and Direct Loan 161.3 161.3 May-05 2005A State Revolving Loan - Subordinte Revenue Bonds and Direct Loan 6.8 6.8 Apr-06 2006A State Revolving Loan - Subordinte Revenue Bonds and Direct Loan 42.7 42.7 Oct-06 2006B State Revolving Loan - Subordinte Revenue Bonds and Direct Loan 14.2 14.2 Nov-06 2006C Wastewater Senior Revenue Bond 60.0 60.0 Nov-08 2008A Wastewater Senior Revenue Bond 30.0 30.0 Oct-08 2008A/B State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 40.0 40.0 Oct-09 2009A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 23.0 23.0 Jan-10 2010A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 8.0 8.0 Jan-10 2010B Wastewater Senior Revenue Bond 85.0 85.0 Dec-10 2010C State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 37.0 37.0 Nov-11 2011A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 39.8 39.8 Dec-11 2011B Wastewater Senior Revenue Bond 52.3 52.3 Aug-12 2012A Wastewater Senior Revenue Bond 225.0 225.0 Nov-12 2012B Wastewater System Refunding Bond 141.7 141.7 Date of Voters Bond Authorizations Fully Utilized Bond Authorizations ($s in millions) 59 Bond Date Series Type Refunding - Not Applied Against Authorization 2/1/2004 8/1/2008 6/1/2012 4/1/2016 (1) Grand Total Oct-13 2013A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 52.0 52.0 Dec-13 2013B Wastewater Senior Revenue Bond 150.0 150.0 Aug-15 2015A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 75.0 75.0 Dec-15 2015B Wastewater System Senior Revenue Bonds 2006C and 2008A were refunded by 2015B. 2015B Also included new money of $150 million. Only the $150 million counts against the District's authorization. 73.9 150.0 223.9 Dec-16 2016A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 20.0 20.0 Dec-16 2016B State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 75.5 75.5 Dec-16 2016C Wastewater Senior Revenue Bond 150.0 150.0 Nov-17 2017A Wastewater Sytem Senior Revenue Bonds 2011B, 2012A, 2013B and 2015B were partially refunded by 2017A. 2017A also included new money of $200 million. Only the $200 million counts against the District's authorization 116.2 47.5 152.5 316.2 Grand Total 331.8$ 500.0$ 275.0$ 945.0$ 152.5$ 2,204.3$ Authorized Amount N/A 500.0$ 275.0$ 945.0$ 900.0$ 2,620.0$ Outanding Amount N/A - - - 747.5$ 747.5$ Note1: Not fully utilized but required to include the entire Nov-FY17 which partically utilizes an outstanding authorization. 60 Bond Date Series Type Refunding - Not Applied Against Authorization Full Authorization - Carried Forward (3) 6/1/2012 (2) 4/1/2016 4/1/2021 Grand Total Carry Forward from Fully Utilized (2) 215.6$ 775.0$ 897.5$ 1,888.1$ Nov-17 2017A Wastewater Sytem Senior Revenue Bonds 2011B, 2012A, 2013B and 2015B were partially refunded by 2017A. 2017A also included new money of $200 million. Only the $200 million counts against the District's authorization 116.2 47.5 152.5 316.2 Dec-18 2018A Water Infrastructure Finance and Innovation Act (WIFIA) bonds. 47.7 47.7 Dec-18 2018B State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 25.3 25.3 Dec-19 2019A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 24.0 24.0 Dec-19 2019B Wastewater Senior Revenue Bond 52.1 52.1 Dec-19 2019C Wastewater System Refunding Bond 276.3 276.3 Sep-20 2020A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 22.0 22.0 Dec-20 2020B Wastewater System Refunding Bond 120.0 120.0 Jan-21 2021A State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 63.1 63.1 Jan-21 2021B State Revolving Loans Program including both Subordinate Revenue Bonds and Direct Loans. 40.2 40.2 May-21 2021C Wastewater System Refunding Bond 5.6 5.6 May-22 2022A Proposed Wastewater System Refunding Revenue Bond 39.8 39.8 Date of Voters Bond Authorizations Partial Utilized and Projected Authorizations ($s in millions) 61 Bond Date Series Type Refunding - Not Applied Against Authorization Full Authorization - Carried Forward (3) 6/1/2012 (2) 4/1/2016 4/1/2021 Grand Total Jun-22 2022B Proposed Wastewater System Senior Revenue Bonds. 100.0 100.0 Sep-22 2022D Proposed State Revolving Loans Program debt. 119.0 119.0 Dec-22 2022E Proposed State Revolving Loans Program debt. 26.0 26.0 Sep-22 2022C Proposed State Revolving Loans Program debt. 10.5 10.5 May-23 2023A Proposed State Revolving Loans Program debt- Direct Purchase. 23.0 23.0 Jun-23 2023B Proposed Water Infrastructure Finance and Innovation Act (WIFIA) bonds. 97.6 180.0 277.6 Jul-23 2023C Proposed State Revolving Loans Program debt. 290.0 290.0 Dec-24 2024B Proposed Wastewater System Senior Revenue Bonds. 30.0 30.0 May-25 2025A Proposed State Revolving Loans Program debt- Direct Purchase. 133.6 133.6 - Grand Total 810.1$ 775.0$ 945.0$ 900.0$ 500.0$ 3,930.1$ Authorized Amount N/A 775.0$ 945.0$ 900.0$ 500.0$ 3,120.0$ Outanding Amount N/A - - 0 - 0 Note2: Include full utilized authorization to show the entire Nov-FY17 Bond. Balances adjusted to ensure dollars were not duplicated. Note3: Includes only 2/1/2004 & 8/1/2008 to account for bond authorizations not included on this page but in the full utilized. Projected 62 63 The District's Master Bond Ordinance provides Debt Service Coverage Ratio minimums for both Senior and Total Debt Service Expense. These amounts are 1.25x and 1.15x, respectively. The District targets Senior Debt Coverage ratios of 2.5x or higher. This coverage ratio target is one component of the District's plan to maintain at least a AA credit rating. 64 Total Expenditures FY23 ($s in millions) Note: Operations includes: General Fund, Water Backup Insurance & Reimbursement Fund, General Insurance Fund and Stormwater Operation & Maintenance in OMCI funds. Detail Operating Expenses Total Operating Budget = $235.6, 29% of Total including: Wastewater Operating, $211.3 & Stormwater Operating $24.3 Presented in Grey on charts Total Operating Budget $235.6, 29% Detail below Total Expenditures $822.9 Presented in Pie Chart Wastewater CIRP,  $393.2, 48% Stormwater CIRP,  $23.8, 3% General  Fund CIRP,  $1.5, 0% Debt Service,  $168.8, 20% Wastewater   Operating, $211.3,  26% Stormwater  Operating, $24.3,  3% 52.2%, Personnel, $123.1 8.3%, Supplies, $19.5 7.6%, Utilities, $18.0 30.0%, Contracted Services, $69.6 2.3 %, Capital Outlay, $5.4 65  1000 ‐ General  Funds   2000 ‐ Principal  and Interest  Funds   4000 ‐ Special  Funds   5000 ‐  Stormwater &  OMCI Funds   6000 ‐  Construction  Funds   Grand Total  00102 ‐ Property Insurance ‐$                      ‐$                      3,858,453$          ‐$                      ‐$                     3,858,453$          00103 ‐ General Liability Insurance ‐                        ‐                         3,656,480           ‐                        ‐                        3,656,480            00104 ‐ Worker's Compensation ‐                        ‐                         2,811,213           ‐                        ‐                        2,811,213            00105 ‐ Water Backup ‐                        ‐                         4,827,688           ‐                        ‐                        4,827,688            00202 ‐ Interest Expense ‐                         164,970,920       ‐                        ‐                         3,790,750           168,761,670        00205 ‐ Tax Fees ‐                        ‐                        ‐                        678,337               ‐                        678,337                SW100 ‐ Stormwater O&M Total (36,121,608)        ‐                        50,638                 28,521,608         7,549,362           0.00                      T1010 ‐ Board of Trustees Total 10,350                 ‐                        ‐                        ‐                        ‐                        10,350                  T1100 ‐ Secretary Treasurer Department Total 2,392,924           ‐                        ‐                        ‐                        ‐                        2,392,924            T1410 ‐ Rate Commission Total 702,000               ‐                        ‐                        ‐                        ‐                        702,000                T2020 ‐ Civil Service Commission Total 11,500                 ‐                        ‐                        ‐                        ‐                        11,500                  T2500 ‐ Human Resources Department Total 9,153,602           ‐                        ‐                        ‐                        ‐                        9,153,602            T3000 ‐ Executive Director Department Total 6,869,175           ‐                        ‐                        ‐                        ‐                        6,869,175            T4000 ‐ Finance Department Total 25,516,681         ‐                        ‐                        ‐                        ‐                        25,516,681          T4500 ‐ Information Technology Department To 17,185,663         ‐                        ‐                        ‐                        ‐                        17,185,663          T5500 ‐ General Counsel Department Total 3,495,479           ‐                        ‐                        ‐                        ‐                        3,495,479            T6000 ‐ Operations Department Total 125,156,776       ‐                        ‐                        ‐                        ‐                        125,156,776        T8000 ‐ Engineering Department Total 29,243,024         ‐                        ‐                        ‐                        ‐                        29,243,024          Grand Total 183,615,567$   164,970,920$   15,204,472$      29,199,945$      11,340,112$      404,331,016$    Appropriations by Department and Fund 66 Department Expense Type General Fund Improvement  Fund Sanitary  Replacement  Fund Stormwater  Regulatory  Fund Districtwide  Stormwater  Fund Proposed SW  Capital Fund OMCI Funds  Total TOTAL Operations Department Stormwater Labor (4,330,800)$       ‐$                  ‐$                  ‐$                   4,330,800$       ‐$                   ‐$                  ‐$                    Operations Department Stormwater Equipment (3,004,197)         ‐                   ‐                   ‐                    3,004,197         ‐                     ‐                   ‐                     Operations Department Stormwater Supplies (1,697,191)         ‐                   ‐                   ‐                    1,697,191         ‐                     ‐                   ‐                     Operations Department Stormwater Overhead (5,886,299)         ‐                   ‐                   ‐                    5,886,299         ‐                     ‐                   ‐                     (14,918,487)      ‐                  ‐                  ‐                   14,918,487      ‐                    ‐                  ‐                    Engineering Department Stormwater Labor (3,757,958)         ‐                   ‐                    2,642,618       1,115,340          ‐                     ‐                   ‐                     Engineering Department Stormwater Overhead (5,107,709)         ‐                   ‐                    3,591,770       1,515,939          ‐                     ‐                   ‐                     Engineering Department SW CIRP Interfund Labor (4,737,370)         ‐                   ‐                   ‐                    3,571,482         ‐                     1,165,887        ‐                     (13,603,037)       ‐                  ‐                   6,234,388       6,202,761         ‐                     1,165,887       ‐                    (28,521,524)$    ‐$                 ‐$                  6,234,388$     21,121,248$    ‐$                   1,165,887$     ‐$                   (7,600,000)        50,638            7,549,362       ‐                  ‐                   ‐                    ‐                  ‐                    Total Interfund Labor (36,121,524)$    50,638$            7,549,362$      6,234,388$      21,121,248$     ‐$                    1,165,887$      ‐$                    Metropolitan Saint Louis Sewer District FY23 Interfund Transfer Activity Operations Department Stormwater Subtotal Engineering Department Stormwater Subtotal Stormwater Subtotal Engineering Department Wastewater Subtotal 67 Department Expense Type General Fund Improvement  Fund Sanitary  Replacement  Fund Stormwater  Regulatory  Fund Districtwide  Stormwater  Fund Proposed SW  Capital Fund OMCI Funds  Total TOTAL Operations Department Stormwater Labor (4,460,724)$       ‐$                  ‐$                  ‐$                   4,460,724$       ‐$                   ‐$                  ‐$                    Operations Department Stormwater Equipment (3,094,323)         ‐                   ‐                   ‐                    3,094,323         ‐                     ‐                   ‐                     Operations Department Stormwater Supplies (1,748,107)         ‐                   ‐                   ‐                    1,748,107         ‐                     ‐                   ‐                     Operations Department Stormwater Overhead (6,062,888)         ‐                   ‐                   ‐                    6,062,888         ‐                     ‐                   ‐                     (15,366,041)      ‐                  ‐                  ‐                   15,366,041      ‐                    ‐                  ‐                    Engineering Department Stormwater Labor (3,870,697)         ‐                   ‐                    2,721,896       1,148,801          ‐                     ‐                   ‐                     Engineering Department Stormwater Overhead (5,260,940)         ‐                   ‐                    3,699,524       1,561,417          ‐                     ‐                   ‐                     Engineering Department SW CIRP Interfund Labor (4,870,375)         ‐                   ‐                   ‐                    3,646,929         ‐                     1,223,446        ‐                     (14,002,013)       ‐                  ‐                   6,421,420       6,357,146         ‐                     1,223,446       ‐                    (29,368,054)$    ‐$                 ‐$                  6,421,420$     21,723,188$    ‐$                   1,223,446$     ‐$                   (7,904,000)        24,671            7,879,329       ‐                  ‐                   ‐                    ‐                  ‐                    Total Interfund Labor (37,272,054)$    24,671$            7,879,329$      6,421,420$      21,723,188$     ‐$                    1,223,446$      ‐$                    Department Expense Type General Fund Improvement  Fund Sanitary  Replacement  Fund Stormwater  Regulatory  Fund Districtwide  Stormwater  Fund Proposed SW  Capital Fund OMCI Funds  Total TOTAL Operations Department Stormwater Labor (4,594,545)$       ‐$                  ‐$                  ‐$                   4,594,545$       ‐$                   ‐$                  ‐$                    Operations Department Stormwater Equipment (3,187,153)         ‐                   ‐                   ‐                    3,187,153         ‐                     ‐                   ‐                     Operations Department Stormwater Supplies (1,800,550)         ‐                   ‐                   ‐                    1,800,550         ‐                     ‐                   ‐                     Operations Department Stormwater Overhead (6,244,774)         ‐                   ‐                   ‐                    6,244,774         ‐                     ‐                   ‐                     (15,827,023)      ‐                  ‐                  ‐                   15,827,023      ‐                    ‐                  ‐                    Engineering Department Stormwater Labor (3,986,818)         ‐                   ‐                    2,803,553       1,183,265          ‐                     ‐                   ‐                     Engineering Department Stormwater Overhead (5,418,769)         ‐                   ‐                    3,810,509       1,608,259          ‐                     ‐                   ‐                     Engineering Department SW CIRP Interfund Labor (4,999,832)         ‐                   ‐                   ‐                    3,983,162         ‐                     1,016,671        ‐                     (14,405,419)       ‐                  ‐                   6,614,063       6,774,685         ‐                     1,016,671       ‐                    (30,232,442)$    ‐$                 ‐$                  6,614,063$     22,601,708$    ‐$                   1,016,671$     ‐$                   (8,220,160)        14,459            8,205,701       ‐                  ‐                   ‐                    ‐                  ‐                    Total Interfund Labor (38,452,602)$    14,459$            8,205,701$      6,614,063$      22,601,708$     ‐$                    1,016,671$      ‐$                    Metropolitan Saint Louis Sewer District FY25 Interfund Transfer Activity Metropolitan Saint Louis Sewer District FY24 Interfund Transfer Activity Operations Department Stormwater Subtotal Engineering Department Stormwater Subtotal Stormwater Subtotal Engineering Department Wastewater Subtotal Engineering Department Wastewater Subtotal Stormwater Subtotal Operations Department Stormwater Subtotal Engineering Department Stormwater Subtotal 68 Budgeted INCREASE/ Budgeted $ Salary, Overtime, and FICA (In Thousands) DEPARTMENT FY20 FY21 FY22 FY23 (DECREASE)FY23 EXPLANATION Secretary - Treasurer 8 7 7 7 0 756 Position count remains the same as previous year Executive Director 20 20 20 21 1 1,849 Added Security Supervisor General Counsel 8 8 8 8 0 1,016 Position count remains the same as previous year Human Resources 23 23 23 22 -1 1,976 Removed Security Supervisor Finance 62 62 62 65 3 4,082 Added Account I, Central Services Coordinator, Office Associate Information Technology 51 51 52 52 0 5,321 Position count remains the same as previous year Engineering 244 244 237 237 0 20,036 Position count remains the same as previous year Operations 611 611 608 608 0 51,740 Position count remains the same as previous year Total Available Positions 1,027 1,026 1,017 1,020 3 $ 86,777 Net positions added Metropolitan St. Louis Sewer District A LLOCATED POSITIONS FY23 0 200 400 600 800 1000 1200 FY20 FY21 FY22 FY23 Allocated Positions History Secretary - Treasurer Executive Director General Counsel Human Resources Finance Information Technology Engineering Operations 1,027 1,026 1,017 1,020 77 116 202 96 405 124 0 100 200 300 400 500 FY23 Allocated Positions by Category 69 Long-Term Liabilities for Pension Plans and Other Postemployment Benefits Other Than Pensions (OPEB) Plans The charts below includes liabilities and related ratios for the Pension: Calendar Year Ending December 31, 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability - Ending (a) 356,407$ 353,994$ 334,957$ 326,365$ 318,049$ 296,812$ 290,412$ Plan Fiduciary Net Position - Ending (b) 326,912 296,201 260,560 277,976 251,010 244,212 250,516 Net Pension Liability - Ending = (a) - (b)29,495$ 57,793$ 74,397$ 48,389$ 67,039$ 52,600$ 39,896$ Fiduciary Net Position as a % of Total Pension Liability 91.72% 83.67% 77.79% 85.17% 78.92% 82.28% 86.26% Covered Payroll 34,391$ 36,793$ 39,437$ 41,869$ 42,055$ 43,345$ 44,664$ Net Pension Liability as a % of Covered Payroll 85.76% 157.08% 188.65% 115.57% 159.41% 121.35% 89.32% Notes to Schedule: 1. This schedule will ultimately present ten years of information when available. 2020 2019 2018 2017 2016 Total OPEB Liability - Ending 24,921$ 23,165$ 24,164$ 24,194$ 22,839$ Schedule of Changes in Net Pension Liability and Related Ratios As many other Governmental Organizations across the country, the District faces large-scale, long-term liabilities associated with retiree Pension and OPEB plans. Actuaries determine the amount of the assets that should be set aside now to ensure adequate resources are available in the future. The District’s contributions were made and will continue to be made in accordance with the actuarially determined contribution requirements based on actuarial valuations. In (000's) 2. The District FY21 and FY20 Comprehensive Annual Financial Report in Footnote 7 Pension (starting on page 69) and RSI (page 110 ) will provide more details. Schedule of Changes in Net OPEB Liability In (000's) 1. The District FY21 and FY20 Comprehensive Annual Financial Report in Footnote 9 Pension (starting on page 79) will provide more details. 70 METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 2023 LIST OF FUNDS1 Fund No. Fund Name Fund No. Fund Name 1101 *$ 2804 $ 2812 $ 2816 2817 $ 2818 $ 2819 $ 2820 $ 2821 $ 2822 $ 2823 $ 2824 $ 2825 $ 2826 $ 2827 $ 2828 $ 2829 $ 2830 $ 2831 $ 2832 $ 2833 $ 2834 $ 2835 $ 2836 $ General Fund Board of Trustees Rate Commission Civil Service Commission Executive Director Secretary - Treasurer Human Resources Finance Information Technology General Counsel Operations Engineering Debt Funds 2004B SRF-Principal and Interest-WW 2010B SR Rev Bond-Principal and Interest-WW 2011B SR Rev Bond-Principal and Interest-WW 2012A SR Rev Bond-Principal and Interest-WW 2012B SR Rev Bond-Principal and Interest-WW 2013B SR Rev Bond-Principal and Interest-WW 2013A SRF-Principal and Interest-WW 2015A SRF-Principal and Interest-WW 2015B SR Rev Bond-Principal and Interest-WW 2016A SRF-Principal and Interest-WW 2016B SRF-Principal and Interest-WW 2016C SR Rev Bond-Principal and Interest-WW 2017A SR Rev Bond-Principal and Interest-WW 2018A WIFIA-Principal and Interest-WW 2018B SRF-Principal and Interest-WW 2019A SRF-Principal and Interest-WW 2019B Rev Bond-Principal &Interest-WW 2019C SR Ref Taxable Rev Bond-P&I-WW 2020A SRF-Principal and Interest-WW 2020B SR Rev Bond-Principal and Interest-WW 2021A SRF-Principal and Interest-WW 2021B SRF-Principal and Interest-WW 2021C SR DP Ref Rev Bond-P&I-WW 2837 2838 $ 2846 $ $ 3306 * 3307 4102 $ 4104 $ 4105 $ 4122 4123 5110 $ 5120 $ 5130 5401 5563 5564 $ 5565 5566 $ 5571 $ 5574 5576 $ 5583 $ 5584 $ 5587 $ 5589 Debt Funds (continued) 2021D SRF–Principal and Interest - WW 2022A SR DP Ref Rev Bond-P&I-WW 2026A SR DP Ref Rev Bond-P&I-WW Proposed Principal and Interest Bond 1 Proposed Principal and Interest Bond 2 Revenue Funds Wastewater Revenue Stormwater Revenue Special Funds Improvement Water Back-up Insurance & Reimbursement General Insurance Fund Wastewater Emergency Fund Stormwater Emergency Fund Stormwater Funds Stormwater Regulatory Fund Districtwide Stormwater Fund Stormwater Operations and Maintenance Fund Operation, Maintenance and Construction Improvement Fund Bond Place Special Taxing Subdistrict Clayton-Central Coldwater Creek Creve Coeur-Frontenac Deer Creek Gravois Creek Loretta-Joplin Maline Creek Sugar Creek University City Watkins Creek Wellston   Notes: 1) The District uses modified accrual basis of budgeting for each fund. 2) * - Denotes major funds. 3) $ - Denotes funds with appropriations. 71 METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 2023 LIST OF FUNDS1 (continued) Fund No. Fund Name 5590 5591 5593 $ 5594 6660 *$ Operations, Maintenance and Construction Improvement Funds (continued) MO River Bonfils Subd. #448 Meramec River Basin Subd. #449 Seminary Br. Of RDP Subd. #454 Black Creek Subd. #455 Construction Funds Sanitary Replacement   Notes: 1) The District uses modified accrual basis of budgeting for each fund. 2) * - Denotes major funds. 3) $ - Denotes funds with appropriations. 72 Projected Ending Fund Balances FY23 ($s in millions) Note: Revenue funds are not included in graph since fund balance is $0.00 GENERAL FUND 9% REVENUE FUNDS 0% STORMWATER 10%OMCI 3% CONSTRUCTION FUNDS 70% DEBT SERVICE FUNDS 8% SPECIAL FUNDS 8% General Fund $ 49.7 Revenue Funds 0.0 Stormwater Funds 25.1 OMCI Funds 16.7 Construction Funds 385.6 Debt Service Funds 44.2 Special Funds 26.3 73 Explanation of Changes in Fund Balance Greater Than Ten Percent    Fund Explanation  1101 – General Fund This fund balance is expected to decrease by 25% or $16.7 million during FY23. The main reason for this  decrease is due to reallocation of sewer service charges. The General Fund receives much of its funding  from the sewer service charges originally received into the revenue funds and later transferred to various  funds. This source of funding fluctuates based on balancing the needs of the General Fund against the needs  of Construction Funds and Special Funds. In FY23 the Construction Fund received more of the sewer service  allocation in order to better follow the District’s rate model pay‐go projections.        6660 – Sanitary  Replacement Fund  This fund balance is expected to increase by 88% or $180.9 million during FY23.  The main reason for this  increase is the timing of revenue bond proceeds and project expenditures.  During FY23, the District is  projecting to receive $433 million in revenue bonds. Some of the bond proceeds are WIFIA or SRF loans  which means these funds are related to specific projects. The WIFA loan will fund the Lemay Fluidized Bed  Incinerators Project estimated at about $100 million in construction cost. Therefore, the District still needs  senior bond proceeds to fund all other capital projects not covered by WIFA, SRF or pay‐go funding.    74 FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Projected Projected FUND BALANCE B.O.P.$389,207,835 $382,426,480 $426,395,850 $457,232,896 $391,805,879 $547,609,777 $435,836,341 Revenues: Revenue Bonds 364,401,977 289,867,954 119,000,000 119,000,000 461,986,911 290,000,000 163,560,000 Wastewater User Charge 424,788,345 419,902,755 436,897,342 446,959,770 460,227,773 476,232,101 473,442,457 Stormwater User Charge (1,801)(2,391)-(321)--- Taxes 35,439,441 43,624,302 43,173,943 42,616,631 45,222,479 45,222,479 45,222,479 Interest on Investments 17,895,386 1,392,278 3,609,400 1,456,743 5,251,995 5,747,911 3,242,823 Connection and Other Fees 3,012,368 3,753,797 3,048,000 4,040,940 3,429,000 3,429,000 3,429,000 Proceeds from Sale of Property 105,228 158,653 202,000 179,413 198,000 198,000 198,000 Rental Income 301,631 323,662 311,000 344,125 346,000 346,000 346,000 Miscellaneous 12,875,168 4,785,846 3,208,000 4,040,659 2,000,000 15,900,000 2,000,000 Total Revenues 858,817,742 763,806,856 609,449,685 618,637,961 978,662,159 837,075,491 691,440,759 Expenditures: Personnel Services 110,127,362 113,442,494 117,881,104 110,896,039 123,041,344 126,369,914 130,383,792 Supplies 15,442,618 16,716,261 19,025,236 19,182,523 19,526,467 19,935,094 20,353,730 Utilities 15,762,631 14,964,455 16,937,966 16,854,308 18,024,322 18,522,222 19,036,290 Contractual Services 55,306,684 57,470,006 64,733,652 63,789,431 69,581,013 72,059,046 72,779,028 Capital Outlay 8,619,175 7,600,174 5,764,600 4,980,357 5,396,200 5,509,520 5,625,220 Construction and Engineering 245,032,587 346,759,470 359,340,522 342,031,423 418,527,244 559,432,244 417,646,459 Principal Payments 52,587,600 62,599,880 61,157,300 61,157,300 70,419,500 76,658,300 89,906,000 Interest Payments 84,045,981 58,831,730 63,285,283 62,031,334 64,201,009 66,302,087 63,539,374 Agency and Other Debt Expenses 278,674,459 10,615,969 2,802,904 3,142,262 34,141,161 4,060,500 137,591,400 Total Expenditures 865,599,097 689,000,439 710,928,567 684,064,977 822,858,260 948,848,927 956,861,294 Net Operating Income (Loss) (6,781,355)74,806,417 (101,478,882) (65,427,017) 155,803,898 (111,773,436) (265,420,535) Interfund Transfers ------- Increase (Decrease) in Fund Bal.(6,781,355)74,806,416 (101,478,882)(65,427,017)155,803,898 (111,773,436)(265,420,535) Percentage of Change -2%20%-24%-14%40%-20%-61% FUND BALANCE E.O.B.$382,426,480 $457,232,896 $324,916,968 $391,805,879 $547,609,777 $435,836,341 $170,415,806 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN TOTAL FUND BALANCE CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCE 75 GENERAL FUND REVENUE FUNDS OPER. MAINT. & CONST. IMPR FUNDS CONSTRUCTION FUNDS DEBT SERVICE FUNDS SPECIAL FUNDS TOTAL FUND BALANCE B.O.P.$66,397,458 $- $49,837,948 $204,701,832 $43,732,474 $27,136,169 $391,805,880 Revenue Bonds ---433,500,000 28,486,911 -461,986,911 Stormwater O&M Interfund Revenue ------ - Wastewater User Charge 948,182 459,279,591 ----460,227,773 Stormwater User Charge ------- Taxes --45,222,479 ---45,222,479 Interest on Investments 672,056 - 456,662 3,425,613 437,325 260,339 5,251,995 Connection and Other Fees 2,305,000 ----1,124,000 3,429,000 Proceeds from Sale of Property 198,000 -----198,000 Rental Income 346,000 -----346,000 Miscellaneous 2,000,000 -----2,000,000 Total Revenues 6,469,238 459,279,591 45,679,142 436,925,613 28,924,236 1,384,339 978,662,159 Personnel Services 121,734,231 ----1,307,113 123,041,344 Supplies 19,526,467 -----19,526,467 Utilities 18,024,322 -----18,024,322 Contractual Services 55,055,955 -678,337 --13,846,721 69,581,013 Capital Outlay 5,396,200 -----5,396,200 Construction and Engineering 20,330,000 -24,486,244 369,711,000 -4,000,000 418,527,244 Principal Payments ----70,419,500 -70,419,500 Interest Payments ----64,201,009 -64,201,009 Agency and Other Debt Expense ---3,790,750 30,350,411 -34,141,161 SSC Allocation ------ - Interfund Labor Transfers (36,121,608)-28,521,608 7,549,362 -50,638 - Total Expenditures 203,945,567 -53,686,189 381,051,112 164,970,920 19,204,472 822,858,260 Net Operating Income (Loss) (197,476,329) 459,279,591 (8,007,048) 55,874,501 (136,046,684) (17,820,133) 155,803,898 Interfund Transfers 180,795,582 (459,279,591) -125,000,000 136,484,009 17,000,000 - Increase (Decrease) in Fund Bal. (16,680,747) -(8,007,048) 180,874,501 437,325 (820,133) 155,803,898 Percentage of Change -25%--16%88%1%-3%40% FUND BALANCE E.O.P.$49,716,711 $-$41,830,900 $385,576,333 $44,169,799 $26,316,036 $547,609,778 METROPOLITAN ST. LOUIS SEWER DISTRICT CONSOLIDATED STATEMENT OF CHANGE IN FUND BALANCE FOR FY23 BUDGET 76 Adjustments Adjustment Explanation Operating Revenues: Sewer service charges 465,962,813$ -$ 465,962,813$ Recovery of (provision for) doubtful sewer service charge (5,735,040) - (5,735,040) Licenses, permits, and other fees 3,429,000 - 3,429,000 Other 2,000,000 - 2,000,000 Total operating revenues 465,656,773 - 465,656,773 Operating Expenses: Pumping and treatment 74,502,038 (1,546,500) 72,955,538 Capital outlay Collection system maintenance 56,691,560 (3,196,700) 53,494,860 Capital outlay Engineering 23,206,203 (8,291,114) 14,915,089 Capital labor General and administrative 76,341,858 (3,455,955) 72,885,903 Capital labor overhead Water backup claims 4,827,688 - 4,827,688 Prepaid Insurance Depreciation - 91,352,269 91,352,269 Depreciation Expense Asset Management 9,030,000 680,801 9,710,801 Labor allocated from Engineering Total operating expenses 244,599,346 75,542,801 320,142,148 Operating Income 221,057,427 (75,542,801) 145,514,626 Non-operating Revenues: Property taxes levied by the District 45,222,479 - 45,222,479 Investment income 5,251,995 - 5,251,995 Capital interest revenue Rent and other income 346,000 - 346,000 Total non-operating revenues 50,820,474 - 50,820,474 Non-operating Expenses: Net gain on disposal and sale of capital assets (198,000) 1,148,760 950,760 Asset disposals with remaining book value Non-recurring projects and studies 9,800,000 696,207 10,496,207 Labor allocated from Engineering Interest expense 98,342,170 547,940 98,890,110 Capital interest expense and loan amortizations Total non-operating expenses 107,944,170 2,392,907 110,337,077 Income before Capital Contributions 163,933,731 (77,935,708) 85,998,023 Capital Contributions: Utility plant contributed - 12,943,095 12,943,095 Contributed assets Grant revenue - 469,624 469,624 Grant revenue Total capital contributions - 13,412,719 13,412,719 Change in Net Position 163,933,731$ (64,522,990)$ 99,410,742$ Balance Sheet Adjustments: Revenue Bonds 461,986,911$ (461,986,911)$ -$ Recorded as an asset on the Balance Sheet Principle Payments (70,419,500) 70,419,500 - Reduces the liability on the Balance Sheet Construction in Progress (399,697,244) 399,697,244 - Recorded as an asset on the Balance Sheet Net Operating Income (Loss)155,803,898$ (56,393,157)$ 99,410,742$ Note:  All capital and asset related items are recorded on the Balance Sheet for GAAP Statements FY23 Fund Basis vs. GAAP Basis Statement of Operations FY23 Budget Fund Basis Statement of Operations GAAP Basis Statement of Operations 77 FY23 BUDGET 78 CIRP The Capital Improvement and Replacement Program identifies, prioritizes, establishes scope of work, and oversees completion of wastewater and stormwater related projects. Capital projects are funded via sewer service charges, revenue bonds and tax receipts. Non-capital related projects are funded through the General Fund. 79 CAPITAL IMPROVEMENT AND REPLACEMENT PROGRAM SUMMARY The identification and prioritization of projects to be included in the Capital Improvement and Replacement Program (CIRP) is a multi-step process, requiring continuous monitoring and updating to ensure that the highest priority problems within the District are addressed in a timely manner, given funding limitations. These stages include project identification with conceptual solution, preliminary study, final design and construction. New projects are identified on an ongoing basis to ensure that the District complies with the regulatory requirements of the United States Environmental Protection Agency and Missouri Department of Natural Resources, to address customer problems, remedy deficiencies and implement required collection system and wastewater treatment plant upgrades. At each step in the process the project scope is reevaluated to verify that it continues to meet regulatory requirements and customers’ needs. The project cost is updated based on available information, and the project’s priority is assessed to ensure that the highest priority projects are funded first. Upon the initial identification of the regulatory issues, localized problems, or system deficiencies, a conceptual solution is developed, which includes a project scope, cost estimate and priority ranking relative to similar projects. The District creates a project based on this conceptual solution, and the project may then be incorporated into the CIRP based on priority. Before the year in which funding of the project is anticipated, a preliminary study is performed. In this study, scope is reevaluated in greater detail. A project may be rescheduled to a later fiscal year within the CIRP, should priority ranking be reduced due to increased project cost or modification of its scope. Project cost estimates used in the budget preparation process are usually based on the preliminary study stage of the process. Preliminary study cost estimates are based on incomplete information but are intended to be within thirty percent of the design engineer’s final estimates. The final design of a project is performed by either the District’s Engineering Department staff or by an engineering consultant hired via a qualifications- based selection process. For projects of significant scope and impact, coordination with property owners who will benefit or who will be affected by the construction of the project is achieved at “open-line” meetings hosted by the District. A project is advertised for public bidding a minimum of 30 days, followed by a formal public bid opening. Bids are evaluated to determine the lowest responsive, responsible bidder. A construction contract is then awarded to the lowest responsible, responsive bidder. Wastewater projects are funded via revenue from the wastewater user charge paid by ratepayers. The user charge also supports the sale of revenue bonds to fund the wastewater program. The Sanitary Replacement Fund is used to pay for capital wastewater work, while the General Fund is used to pay for non-capital wastewater related work. The allocation of a given project’s costs between these two funds is an accounting function necessary to facilitate capitalization of District assets. Wastewater projects may also be funded by various Operation, Maintenance, Construction and Improvement (OMCI) Funds, Construction Funds, Special Funds, or the Improvement Fund. Stormwater projects may be f unded via the General Fund, Construction Funds, Special Funds, the Improvement Fund, the Districtwide Stormwater Fund, or from various OMCI Funds. The CIRP for the FY23 budget year is summarized by project type on the following pages. For additional information on the stages of identification and prioritization of projects, please refer to the Program Summary section of the FY23 Budget Supplement. 80 Wastewater Engineering  $53.5 M 13% Wastewater Construction $330.6 M 79% Continued Wastewater $9.1 M 2% Continued Stormwater $0.2 M 0% Stormwater Construction $16.8 M 4% Stormwater Engineering $6.9 M 2% Capital Improvement and Replacement Program FY23 Total $417.0 M The above does not include the General Fund Project of $1.5 Million dollars for the Oracle Cloud Project for a grand total of $418.5 million.81 TYPE OF PROJECT PROJECT COST CONSTRUCTION Wastewater Engineering 51 $53,515,000 Wastewater Construction 50 330,576,000 Stormwater Engineering 9 6,850,000 Stormwater Construction 19 16,786,244 TOTAL:129 $407,727,244 CONTINUED Wastewater Continued 3 $9,100,000 Stormwater Continued 1 200,000 TOTAL:4 $9,300,000 TOTAL CIRP:133 $417,027,244 The above does not include the General Fund Project of $1.5 Million dollars for Oracle Cloud Project for grand total of $418.5 million. METROPOLITAN ST. LOUIS SEWER DISTRICT CAPITAL IMPROVEMENT AND REPLACEMENT PROGRAM SUMMARY - FY23 NUMBER OF PROJECTS 82 Operating Expense Impact of CIRP    Many of the CIRP projects have minor impacts on the O&M costs of the District.  Some of these impacts related to additional feet of pipe and I/I  removal are quantified in the following pages.  Some projects have more significant impacts and are discussed below.    Deer Creek Sanitary Tunnel  This sanitary tunnel extends more than four miles from Clayton Road to Interstate  44, the tunnel will collect and temporarily store peak wastewater overflows along  the Deer Creek sewer system. The 22,800‐foot‐long tunnel will provide relief to  several communities including Clayton, Richmond Heights, Brentwood,  Maplewood, Webster Groves, and Shrewsbury, where basement backups and  sewer overflows historically occur when heavy rains overcharge the existing  system. This sanitary tunnel is expected to contribute an additional $27 thousand  per year to the District’s utilities costs beginning with the FY23 budget year.                   83 Cost/Foot (0.30)0.7742 $0.00040 PROJECT DESCRIPTION Feet Pipe Added Cost Impact Project Budget for I/I Removal Cost Impact WASTEWATER CONSTRUCTION PROJECTS MC-02 WATSON TO EDGAR RD SANITARY RELIEF (SKME-580A)9,050 7,007$ -$ -$ 97 WEBSTER GROVES TRUNK E SANITARY REHABILITATION AND I/I REDUCTION PHASE IV - - 1,300,000 (520) Carryover, no page HARLEM - BADEN RELIEF PHASE IV (HEBERT) (GOODFELLOW TO HAMILTON)7,200 5,574 - - 78 CAULKS CREEK FORCEMAIN (RIVER VALLEY RD TO L-52)17,000 13,161 - - 67 HARLEM BADEN RELIEF PHASE IV (HEBERT) - HAMILTON TO DARVER TRUNK SEWER 3,660 2,834 - - Carryover, no page HARLEM BADEN RELIEF PHASE IV (HEBERT) - TRUNK SEWER REHABILITATION - - 50,000 (20) 37 BLACK CREEK - HADDINGTON COURT RELIEF SEWERS 7,995 6,190 - - 65 JEFFERSON BARRACKS TUNNEL CONSOLIDATION SEWERS 5,700 4,413 - - 88 AMBLEWOOD SANITARY RELIEF (WATERFORD DR TO BIRCHBARK DR)2,400 1,858 - - 55 BANFF SANITARY RELIEF (CAITHNESS RD TO LANARK RD)342 265 - - 57 BC-01 PHASE III AND BC-02 PHASE II SANITARY RELIEF (I-170 TO HEATHERWOOD DR)12,915 9,999 - - 1 CSO - MARY AVENUE SOUTH OF MANCHESTER CSO INTERCEPTOR (I-132)/OUTFALL (L-106) ELIMINATION PHASE II 10,500 8,129 - - 12 FF-15 AND FF-16 SANITARY RELIEF PHASE II REHABILITATION 4,500 3,484 - - 74 GEYER SANITARY RELIEF (W. MONROE AVE TO W. ESSEX AVE)3,400 2,632 - - 31 GLEN ECHO SANITARY RELIEF (ENGELHOLM AVE TO HENDERSON AVE)6,220 4,816 - - 32 FLORISSANT/DUNN SANITARY RELIEF (ST. ANTHONY LN TO I-270)6,170 4,777 - - 75 S BRENTWOOD BLVD SANITARY RELIEF (DAYTONA DR TO WALINCA TERRACE)2,800 2,168 - - 50 SAYLESVILLE SANITARY RELIEF (SAYLESVILLE DR TO S GREENTRAILS DR)3,920 3,035 - - 106 GLENFIELD SANITARY RELIEF (WATSON WOODS CT TO S LINDBERGH BLVD)2,400 1,858 - - 76 WHITE PLAINS SANITARY RELIEF (SALTBOX DR TO CEDAR CREEK RD)2,785 2,156 - - 107 GREENBRIAR #2 PUMP STATION (P-448) ELIMINATION 1,080 836 - - 77 LINDSAY - ST. ALBERT PRIVATE I/I REDUCTION - - 500,000 (200) 94 HAMPTON CREEK SANITARY RELIEF (DEER CREEK TRUNK TO OXFORD DR) PHASE I 7,500 5,807 - - 35 NEWPORT LANDING PUMP STATION (P-480) ELIMINATION 1,555 1,204 - - 98 PRICE TO PIONEER SANITARY RELIEF 5,665 4,386 - - 100 GENERAL SERVICES AGREEMENT - SEWER AND CHANNEL DESIGN (2021) CONTRACT A 305 236 - - 26 NORTH FEE FEE CREEK PUBLIC I/I REDUCTION - - 6,000,000 (2,400) 99 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT D - - 3,594,000 (1,438) 61 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT E - - 4,251,000 (1,700) 62 BADEN CITYSHED MITIGATION BASINS (CALVARY, FREDERICK, PARTRIDGE AND TILLIE) - SEPARATION SEWERS 11,000 8,516 - - 56 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT A - - 2,500,000 (1,000) 83 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT B - - 2,500,000 (1,000) 84 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT C - - 2,663,000 (1,065) 60 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT F - - 2,360,000 (944) 63 CROSS TIMBERS #705 SANITARY REPLACEMENT 410 317 - - 69 HATHAWAY DRIVE SANITARY RELIEF 10,402 8,053 - - 81 LINDSAY LANE SANITARY RELIEF (LINDSAY LANE TO LINDBERGH BLVD)3,200 2,477 - - 41 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT C - - 3,310,000 (1,324) 85 Total Wastewater Construction Projects 150,074 116,187$ 29,028,000$ (10,287)$ Budget Supplement Page Number CIRP PROJECTS WITH IMPACT ON OPERATING COSTS FISCAL YEAR 2023 CIRP Impact on Operating Costs 84 Cost/Foot (0.30)0.7742 $0.00040 PROJECT DESCRIPTION Feet Pipe Added Cost Impact Project Budget for I/I Removal Cost Impact Budget Supplement Page Number CIRP PROJECTS WITH IMPACT ON OPERATING COSTS FISCAL YEAR 2023 CIRP Impact on Operating Costs STORMWATER CONSTRUCTION PROJECTS HALLSTEAD STORM CHANNEL PHASE IV (MCBJ-230)1,220 945$ -$ -$ 143 HALL STREET STORM SEWERS 5,500 4,258 - - 142 DEARBORN DR STORM SEWER 355 275 - - 149 LONGFORD DRIVE 1851 STORM SEWER 134 104 - - 156 BALLMAN DRIVE 300 BLOCK STORM SEWER 670 519 - - 146 NORTH NEW FLORISSANT - FOX RUN STORM SEWER 1,230 952 - - 158 LARIMORE STORM SEWER 4,880 3,778 - - 154 MEADOW CREEK LN 508 STORM SEWER 200 155 - - 157 LITZSINGER #10412 STORM SEWER IMPROVEMENTS 250 194 - - 155 STORMWATER INFRASTRUCTURE REPAIRS (REHABILITATION) (2023)- - 3,000,000 (1,200) 161 Total Stormwater Construction Projects 14,439 11,179$ 3,000,000$ (1,200)$ TOTAL 164,513 $ 127,366 $32,028,000 $ (11,487) NOTES: 2. Projects that include rehabilitation or replacement will result in a savings in operating costs due to reduced need for preventive maintenance and possible basement back-ups. Inflow and Infiltration (I/I) projects results in less wastewater being processed at treatment facilities. Sewer separation and relief projects result in added sewer pipe so an added cost is expected in maintenance of those structures. 1. Only projects with an impact on operating costs are included here. For a full list of projects, please see the FY23 Budget Supplement located in the appendix. 85 WASTEWATER CONSTRUCTION PROJECTS The projects described in this section are related to construction, rehabilitation or maintenance repair of sanitary or combined sewers, pump stations and force mains improvements to existing treatment plants, and the reduction of inflow and infiltration into the sewer system. These t ypes of projects help alleviate building backups, address regulatory issues, enable the removal of sanitary and combined sewer overflows, and rebuild part of our aging infrastructure system. Fifty (50) projects are to be funded at a total estimated cost of $330,576,000. The District’s revenue sources for construction of most of these projects are the Sanitary Replacement Fund and the General Fund, which receive money from wastewater user charges and from the sale of revenue bonds. The remaining projects will be funded with revenues from various Operation, Maintenance, Construction, and Improvement (OMCI) Funds, Districtwide Stormwater Fund*, and Special Funds. The property taxes collected within the boundaries of the OMCI Taxing Districts must be spent for improvements within their specific areas of collection. The Improvement Fund also receives revenues from various connection fees. *The Districtwide Stormwater Fund is generally reserved for stormwater expenses, but the wastewater project planned for this fund is related to the wastewater consent decree and includes stormwater regulatory benefits. 86 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 1101 - General Fund CSO VOLUME REDUCTION GREEN INFRASTRUCTURE Various $5,000,000 70 CSO VOLUME REDUCTION GREEN INFRASTRUCTURE - RIVER DES PERES Various $3,000,000 71 $8,000,000 2 4102 - Improvement Fund LEMAY WWTF REPAIRS AND IMPROVEMENTS (2023) (GRIT TANKS AND SECONDARY CLARIFIER DUCT BANK)Unincorporated $4,000,000 93 $4,000,000 1 5120 - Districtwide Stormwater Fund LAMBERT AIRPORT RESTRICTED ACCESS ASSETS INSPECTION AND REPAIR Unincorporated $500,000 90 SAYLESVILLE SANITARY RELIEF (SAYLESVILLE DR TO S GREENTRAILS DR)Chesterfield $150,000 105 $650,000 2 6660 - Sanitary Replacement Fund BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $101,000,000 58 LOWER MERAMEC RIVER SYSTEM IMPROVEMENTS - BAUMGARTNER TO FENTON WWTF TUNNEL Various $48,000,000 95 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $30,000,000 96 BISSELL POINT WWTF FINE SCREEN, CONCRETE AND GATE IMPROVEMENTS St. Louis City $18,000,000 64 BLACK CREEK - HADDINGTON COURT RELIEF SEWERS Ladue $13,000,000 65 INFRASTRUCTURE REPAIRS (WASTEWATER) (2023)Various $9,000,000 87 NORTH FEE FEE CREEK PUBLIC I/I REDUCTION Various $6,000,000 99 MC-02 WATSON TO EDGAR RD SANITARY RELIEF (SKME-580A) Various $5,954,000 97 COLDWATER CREEK WWTF REPAIRS AND IMPROVEMENTS (2023) Unincorporated $5,000,000 68 FLORISSANT/DUNN SANITARY RELIEF (ST. ANTHONY LN TO I-270) Florissant $4,910,000 75 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT E Various $4,251,000 62 HARLEM CITYSHED MITIGATION BASINS (ASHLAND AND ESSEX) Various $4,000,000 80 PUMP STATION MANLIFT REPLACEMENT Various $4,000,000 102 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT D Various $3,594,000 61 PROJECT LISTING FY23 Subtotal: Number of Projects 2 WASTEWATER CONSTRUCTION PROJECTS Subtotal: Number of Projects 1 Subtotal: Number of Projects 2 87 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) PROJECT LISTING FY23 WASTEWATER CONSTRUCTION PROJECTS 6660 - Sanitary Replacement Fund - Continued EASEMENT ACQUISITION FOR WASTEWATER PROJECTS (2023) Various $3,500,000 72 JEFFERSON BARRACKS TUNNEL CONSOLIDATION SEWERS Unincorporated $3,400,000 88 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT C St. Louis City $3,310,000 85 CAULKS CREEK A PUMP STATION (P-750) IMPROVEMENTS Chesterfield $3,200,000 66 INFRASTRUCTURE REPAIRS (FACILITIES) (2023)Various $3,000,000 82 SAYLESVILLE SANITARY RELIEF (SAYLESVILLE DR TO S GREENTRAILS DR) Chesterfield $2,850,000 106 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT C Various $2,663,000 60 FF-15 AND FF-16 SANITARY RELIEF PHASE II REHABILITATION Maryland Heights $2,650,000 74 PRICE TO PIONEER SANITARY RELIEF Olivette $2,507,000 100 CAULKS CREEK FORCEMAIN (RIVER VALLEY RD TO L-52) Maryland Heights $2,500,000 67 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT A Various $2,500,000 83 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT B Various $2,500,000 84 AMBLEWOOD SANITARY RELIEF (WATERFORD DR TO BIRCHBARK DR) Florissant $2,453,000 55 BADEN CITYSHED MITIGATION BASINS (CALVARY, FREDERICK, PARTRIDGE AND TILLIE) - SEPARATION SEWERS St. Louis City $2,400,000 56 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT F Various $2,360,000 63 BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $2,000,000 59 HARLEM BADEN RELIEF PHASE IV (HEBERT) - SEWER REHABILITATION Various $2,000,000 79 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CORPS CSO PROGRAM Various $2,000,000 86 LAMBERT AIRPORT RESTRICTED ACCESS ASSETS INSPECTION AND REPAIR Unincorporated $2,000,000 89 WHITE PLAINS SANITARY RELIEF (SALTBOX DR TO CEDAR CREEK RD) Chesterfield $1,800,000 107 HARLEM - BADEN RELIEF PHASE IV (HEBERT) (GOODFELLOW TO HAMILTON) St. Louis City $1,279,000 78 GLENFIELD SANITARY RELIEF (WATSON WOODS CT TO S LINDBERGH BLVD)Sunset Hills $1,130,000 76 LEMAY 1 PUMP STATION (P-301) COOLING TOWER REPLACEMENT St. Louis City $1,130,000 91 HATHAWAY DRIVE SANITARY RELIEF Jennings $902,000 81 LEMAY WWTF AERATION BLOWER AND POWER DISTRIBUTION IMPROVEMENTS Unincorporated $900,000 92 ROBYN HILLS NUMBER 1 PUMP STATION (P-417) REPLACEMENT Sunset Hills $780,000 103 NEWPORT LANDING PUMP STATION (P-480) ELIMINATION Unincorporated $626,000 98 LINDSAY - ST. ALBERT PRIVATE I/I REDUCTION Florissant $500,000 94 PUMP STATION FALL PROTECTION UPGRADES - PHASE I Various $500,000 101 FABICK PUMP STATION (P-444) IMPROVEMENTS (SKME-404E) Fenton $460,000 73 88 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) PROJECT LISTING FY23 WASTEWATER CONSTRUCTION PROJECTS 6660 - Sanitary Replacement Fund - Continued CROSS TIMBERS #705 SANITARY REPLACEMENT Town and Country $425,000 69 GREENBRIAR #2 PUMP STATION (P-448) ELIMINATION Des Peres $425,000 77 ROXBURGH DR SANITARY RELIEF Clayton $400,000 104 BANFF SANITARY RELIEF (CAITHNESS RD TO LANARK RD) Unincorporated $167,000 57 $317,926,000 Subtotal: Number of Projects 47 47 $330,576,000 TOTAL: NUMBER OF PROJECTS 53 53 (1)  The Page refers to the page number in the Budget Supplement Appendix Note: Highted projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are  counted as one project . 89 WASTEWATER ENGINEERING PROJECTS The projects described in this section relate to the preliminary or final design of new or rehabilitated sanitary and combined sewer systems, pump stations, force mains, and treatment plants. Also included in this section are projects relating to combined and separate sewer overflow elimination and separation projects, additional appropriations for combined and separate sewer area inflow/infiltration assessments, combined and separate sewer area CCTV inspections and physical inspection of sewers, construction management services, and continued funding of the District’s Watershed Design efforts. The construction phase of design projects is planned in later fiscal years due to the complexity of the designs, the size of the projects, and the time required to obtain needed easements. Fifty-one (51) wastewater engineering projects are planned at a total estimated cost of $53,515,000. The cost estimates indicated are for only the required engineering work and do not include construction. The project scopes are fully described in the Budget Supplement document located in the appendix. The District’s revenue sources for the majority of these projects are from the Sanitary Replacement Fund and the General Fund. 90 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 1101 - General Fund CCTV INSPECTION AND PHYSICAL INSPECTION OF SEWERS (2023) Various $3,000,000 5 FLOW METERING AND MONITORING (2022)Various $2,500,000 13 CRITICAL INFRASTRUCTURE ASSESSMENT AND ASSET INVESTIGATION (2023) Various $1,700,000 11 WET WEATHER OPTIMIZATION STUDY Various $1,500,000 54 STREAM FLOW GAUGE OPERATION AND MAINTENANCE (USGS) Various $605,000 51 RDP TRIBUTARIES & UPPER RDP CSO CONTROLS & LOWER MERAMEC SYSTEM IMPROVEMENTS (WATERSHED Various $600,000 49 STREAM FLOW WATER QUALITY SAMPLING (2023)Various $350,000 52 RADAR RAINFALL DATA (2020)Various $150,000 48 LOWER & MIDDLE RDP CSO CONTROLS SYSTEM IMPROVEMENTS (WATERSHED CONSULTANT)Various $125,000 42 GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT A Various $75,000 22 GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT B Various $75,000 23 GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT C Various $75,000 24 GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT D Various $75,000 25 $10,830,000 13 6660 - Sanitary Replacement Fund BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $8,600,000 3 CONSTRUCTION MANAGEMENT SERVICES - TANK/TREATMENT/PUMP STATION FACILITIES Various $7,500,000 10 CONSTRUCTION MANAGEMENT SERVICES - LOWER MERAMEC AND DEER CREEK TUNNELS Various $5,000,000 9 CONSTRUCTION MANAGEMENT SERVICES - LOWER AND MIDDLE RDP TUNNEL FACILITIES Various $2,500,000 8 GENERAL SERVICES AGREEMENT - CONSTRUCTION MANAGEMENT (2022) Various $2,000,000 15 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $2,000,000 46 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $1,716,000 45 BC-01 PHASE III AND BC-02 PHASE II SANITARY RELIEF (I-170 TO HEATHERWOOD DR)Various $1,705,000 1 WEBSTER GROVES TRUNK E SANITARY RELIEF (SKME-628)Webster Groves $1,512,000 53 GASLIGHT SQUARE SEWER IMPROVEMENTS PHASE II St. Louis City $1,500,000 14 BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $1,000,000 2 GLEN ECHO SANITARY RELIEF (ENGELHOLM AVE TO HENDERSON AVE)Various $730,000 32 LEMAY NO. 3 PUMP STATION AND FORCE MAIN Unincorporated $575,000 39 LOWER MERAMEC RIVER SYSTEM IMPROVEMENTS - BAUMGARTNER TO FENTON WWTF TUNNEL Various $575,000 44 PROJECT LISTING FY23 WASTEWATER ENGINEERING PROJECTS Subtotal: Number of Projects 13 91 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) PROJECT LISTING FY23 WASTEWATER ENGINEERING PROJECTS 6660 - Sanitary Replacement Fund - Continued S BRENTWOOD BLVD SANITARY RELIEF (DAYTONA DR TO WALINCA TERRACE) Clayton $500,000 50 GEYER SANITARY RELIEF (W. MONROE AVE TO W. ESSEX AVE) Kirkwood $496,000 31 LINDSAY LANE SANITARY RELIEF (LINDSAY LANE TO LINDBERGH BLVD) Florissant $491,000 41 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2022) CONTRACT A Various $475,000 17 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2022) CONTRACT B Various $450,000 18 GRAND GLAIZE WWTF REPAIRS AND IMPROVEMENTS (2023)Valley Park $400,000 34 LEMAY WWTF REPAIRS AND IMPROVEMENTS (2023) (GRIT TANKS AND SECONDARY CLARIFIER DUCT BANK)Unincorporated $400,000 40 LOWER & MIDDLE RDP CSO CONTROLS SYSTEM IMPROVEMENTS (WATERSHED CONSULTANT)Various $270,000 43 GRAND GLAIZE WWTF GRAND GLAIZE CREEK BANK STABILIZATION Valley Park $260,000 33 CAULKS CREEK A PUMP STATION (P-750) IMPROVEMENTS Chesterfield $200,000 4 CSO - MARY AVENUE SOUTH OF MANCHESTER CSO INTERCEPTOR (I-132)/OUTFALL (L-106) ELIMINATION PHASE II Brentwood $200,000 12 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2020) CONTRACT A Various $200,000 16 GENERAL SERVICES AGREEMENT - SEWER AND CHANNEL DESIGN (2021) CONTRACT A Various $200,000 26 HAMPTON CREEK SANITARY RELIEF (DEER CREEK TRUNK TO OXFORD DR) PHASE I Various $200,000 35 COLDWATER CREEK WWTF REPAIRS AND IMPROVEMENTS (2023)Unincorporated $175,000 7 HARLEM - BADEN RELIEF PHASE IV (HEBERT) BUILDING DEMOLITION AND DESIGN St. Louis City $100,000 36 JEFFERSON BARRACKS TUNNEL CONSOLIDATION SEWERS Unincorporated $100,000 38 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT A Various $85,000 19 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT B Various $85,000 20 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT C Various $85,000 21 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT A Various $62,500 27 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT B Various $62,500 28 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT C Various $62,500 29 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT D Various $62,500 30 CITYSHED MITIGATION PROGRAM DESIGN (CONTRACT B)St. Louis City $50,000 6 HARLEM BADEN RELIEF PHASE IV (HEBERT) - TRUNK SEWER REHABILITATION Various $50,000 37 PUMP STATION REPLACEMENT PROJECTS (PHASE I)Various $50,000 47 $42,685,000 41 $53,515,000 54 (1)  The Page refers to the page number in the Budget Supplement Appendix Note: Highted projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are  counted as one project . TOTAL: NUMBER OF PROJECTS 54 Subtotal: Number of Projects 41 92 STORMWATER CONSTRUCTION PROJECTS The projects described in this section are related to constructing storm sewers, channels, and creek bank stabilization, which will help alleviate flooding and erosion problems. There are nineteen (19) projects planned at a total estimated cost of $16,786,244. The District’s revenue sources for these projects are from the Stormwater Regulatory Fund, Districtwide Stormwater Fund and from the property tax revenue in various Operation, Maintenance, Construction and Improvement (OMCI) Funds currently established throughout the District. 93 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 5110 - Stormwater Regulatory Fund GRAND GLAIZE CREEK WATERSHED INITIATIVE Various $200,000 152 STORMWATER QUALITY GREEN INFRASTRUCTURE - SMALL GRANT RAINSCAPING PROGRAM Various $200,000 162 $400,000 2 5120 - Districtwide Stormwater Fund STORMWATER INFRASTRUCTURE REPAIRS (2023)Various $4,000,000 160 STORMWATER INFRASTRUCTURE REPAIRS (REHABILITATION) (2023)Various $3,000,000 161 LARIMORE STORM SEWER Unincorporated $2,600,000 154 $9,600,000 3 5564 - Coldwater Creek OMCI Fund COLDWATER CREEK OMCI REIMBURSEMENTS PROGRAM Various $1,076,519 148 NORTH NEW FLORISSANT - FOX RUN STORM SEWER Florissant $600,000 158 $1,676,519 2 5566 - Deer Creek OMCI Fund DEER CREEK OMCI REIMBURSEMENTS PROGRAM Various $1,958,164 150 BEAUCAIRE DRIVE - MARK DRIVE - MONACO DRIVE STORM SEWER Warson Woods $325,000 147 DEARBORN DR STORM SEWER Warson Woods $320,000 149 LITZSINGER #10412 STORM SEWER IMPROVEMENTS Frontenac $115,000 155 DEER CREEK WATERSHED INITIATIVE Various $100,000 151 MEADOW CREEK LN 508 STORM SEWER Warson Woods $85,000 157 $2,903,164 6 5571 - Gravois Creek GRAVOIS CREEK OMCI REIMBURSEMENTS PROGRAM Various $742,722 153 $742,722 1 Subtotal: Number of Projects 1 Subtotal: Number of Projects 6 PROJECT LISTING FY23 STORMWATER CONSTRUCTION PROJECTS Subtotal: Number of Projects 2 Subtotal: Number of Projects 3 Subtotal: Number of Projects 2 94 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) PROJECT LISTING FY23 STORMWATER CONSTRUCTION PROJECTS 5576 - Maline Creek OMCI Fund BALLMAN DRIVE 300 BLOCK STORM SEWER Ferguson $600,000 146 LONGFORD DRIVE 1851 STORM SEWER Unincorporated $95,000 156 $695,000 2 5583 - Sugar Creek OMCI Fund SUGAR CREEK OMCI REIMBURSEMENTS PROGRAM Various $149,498 163 $149,498 $2 5584 - University City OMCI Fund UNIVERSITY CITY OMCI REIMBURSEMENTS PROGRAM Various $495,049 164 1 $495,049 0 5593 - Sem Br Of River Des Peres OMCI Fund SEMINARY OMCI REIMBURSEMENTS PROGRAM Various $124,292 159 1 $124,292 $16,786,244 19 (1)  The Page refers to the page number in the Budget Supplement Appendix 2 Subtotal: Number of Projects 1 TOTAL: NUMBER OF PROJECTS 19 Note: Indicated projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are counted as one project . Subtotal: Number of Projects 2 Subtotal: Number of Projects 2 Subtotal: Number of Projects 1 95 STORMWATER ENGINEERING PROJECTS There are nine (9) stormwater engineering projects planned at a total estimated cost of $6,850,000. The cost estimates indicated are for only the required engineering work and do not include construction. The scope of the projects is fully described in the budget supplement located in the appendix. The District’s revenue sources for these projects are from the Districtwide Stormwater Fund and from the property tax revenue in various Operation, Maintenance, Construction and Improvement (OMCI) Funds currently established throughout the District. 96 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 5110 - Stormwater Regulatory Fund GENERAL SERVICES AGREEMENT - WATER QUALITY SUPPORT SERVICES (2021) Various $150,000 140 $150,000 1 5120 - Districtwide Stormwater Fund GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT A Various $1,300,000 137 GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT B Various $1,300,000 138 GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT C Various $1,300,000 139 RIVER DES PERES CHANNEL REHABILITATION St. Louis City $1,000,000 144 STORMWATER ASSET INVESTIGATIONS (2022)Various $800,000 145 HALL STREET STORM SEWERS St. Louis City $600,000 142 HALLSTEAD STORM CHANNEL PHASE IV (MCBJ-230)Unincorporated $100,000 143 $6,400,000 7 5571 - Gravois Creek OMCI Fund GRAVOIS CREEK OMCI STORMWATER DESIGN (2023)Various $300,000 141 $300,000 1 $6,850,000 9 (1)  The Page refers to the page number in the Budget Supplement Appendix Note: Highted projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are counted as one  project . TOTAL: NUMBER OF PROJECTS 9 PROJECT LISTING FY23 STORMWATER ENGINEERIING PROJECTS Subtotal: Number of Projects 7 Subtotal: Number of Projects 1 Subtotal: Number of Projects 1 97 CONTINUED WASTEWATER PROJECTS Some of the District’s Wastewater Projects are continued from previous fiscal years due to difficulties in easement acquisition, the permit process from other agencies, design revisions or status, or other special requirements or issues. There are three (3) wastewater projects that were identified in previous budget supplements that are on the continued list. These projects have a total estimated cost of $9,100,000. The District’s revenues to construct these projects are from the Sanitary Replacement Fund. 98 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 6660 - Sanitary Replacement Fund HARLEM BADEN RELIEF PHASE IV (HEBERT) - HAMILTON TO DARVER TRUNK SEWER Various $6,000,000 Carryover, no page EARTH CITY UPS PUMP STATION (P-702) REPLACEMENT PHASE II Unincorporated $1,800,000 Carryover, no page WEBSTER GROVES TRUNK E SANITARY REHABILITATION AND I/I REDUCTION PHASE IV Webster Groves $1,300,000 Carryover, no page $9,100,000 3 PROJECT LISTING FY23 WASTEWATER CONTINUED PROJECTS TOTAL: NUMBER OF PROJECTS 3 99 CONTINUED STORMWATER PROJECTS Some of the District’s Stormwater Projects are continued from previous fiscal years due to difficulties in easement acquisition, the permit process from other agencies, design revisions or status, or other special requirements or issues. There are one (1) stormwater projects that were identified in previous budget supplements that are on the continued list. These projects have a total estimated cost of $200,000. The District’s revenues to construct these projects are from the appropriate Operation, Maintenance, Construction, and Improvement (OMCI) Funds, or the Districtwide Stormwater Fund. 100 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 5584 - University City OMCI Fund SIMS AVE STORM BUYOUT Overland $200,000 Carryover, no page $200,000 1 (1)  The Page refers to the page number in the Budget Supplement Appendix TOTAL: NUMBER OF PROJECTS 1 PROJECT LISTING FY23 STORMWATER CONTINUED PROJECTS 101 07/21 07/22 07/23 07/24 * *Represents a rate increase Note: The FY23 numbers do not include the General Fund Project of $1.5 Million dollars for the Oracle Cloud Project for a grand total of $418.5 million. The FY25 Construction and  Engineering expense has been adjusted by ‐12.0% for delays and ‐8.4% of the FY22 forecast for liquidations which is a process consistent with that used by MSD in its Rate Change  Proposals. As a result of these adjustments, the Construction and Engineering FY25 expense on this page is higher than what is shown on the Consolidated Statement of Change in  Fund Balance page. STORMWATER $5.5M $16.6M $11.3M $2.1M Stormwater Projects Stormwater Projects Stormwater Projects Stormwater Projects OMCI Projects OMCI Projects OMCI Projects OMCI Projects $10.9M $7.3M $22.8M FY22 FY23 FY24 FY25 $247.5M "Pay Go"$0M "Pay Go"$235.3M "Pay Go"$316.8M "Pay Go" $119M Issue Additional Bonds $462M Issue Additional Bonds $290.0M Issue Additional Bonds $166.6M Issue Additional Bonds Wastewater Projects $366.5M $393.1M 525.3M $483.4M MSD CIRP Proposed Funding Timeline Through June 30, 2025 WASTEWATER Wastewater Projects Wastewater Projects Wastewater Projects $16.4M "Pay Go"$23.9M "Pay Go"$34.1M "Pay Go"$21.5M "Pay Go" $19.4M 102 Total Total Total Program/Year 2003 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2003 2024 2003 Actuals Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast Budget -2023 -2028 -2028 Collection System Improvement $818.0 $160.3 $203.4 $230.7 $262.9 $258.5 $269.3 $283.7 $230.8 $313.1 $250.6 $196.9 $3,478.2 $1,245.4 $4,723.6 Treatment Plant Improvements 726.7 29.7 9.1 17.5 7.1 4.8 16.6 6.4 24.5 29.5 76.7 189.6 1,138.2 689.6 1,827.8 Stormwater 99.0 5.1 5.2 5.5 6.1 22.9 7.5 21.6 16.1 22.7 17.6 24.0 253.3 84.2 337.5 Other 12.4 0.0 0.0 0.0 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.9 0.0 13.9 TOTAL $1,656.2 $195.1 $217.7 $253.7 $277.6 $286.2 $293.4 $311.7 $271.4 $365.3 $344.9 $410.5 $4,883.7 $2,019.2 $6,902.9 Capital Improvement and Replacement Program represented in amounts appropriated or currently estimated amounts to be appropriated Multi-Decade Capital Improvement and Replacement Program Fiscal Year 2003 to Fiscal Year 2028 ($s in millions) 103 FY23 BUDGET 104 GENERAL FUND A fund established by administrative action to finance the ordinary operations of the District. It is used to account for all revenues and activities not provided for in any other fund. 105  $(10,000)  $‐  $10,000  $20,000  $30,000  $40,000  $50,000 GENERAL FUND ‐ FUND 1101 Revenue Trends ($s in thousands) Fund Balance Other Miscellaneous Connection and Other Fees Wastewater User Charge This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for FY24 and FY25.   As the budget and projected years are calculated, there are several factors that are analyzed when projecting general fund revenues such as historiclal trends,  the economy, and local impacts. Wastewater User Charges recorded in the General Fund include adjustments, late charges, and other fees associated with collection of the wastewater user  charge netted against the bad debt provision.  These net revenues are projected to be $948 thousand in FY23 which is up from $‐375 thousand in FY20.   Connection and Other Fees are consistently around $2.0 million over the reporting period.  Historically, connection and other fees remain very consistent, the  District assumes the pattern will continue. The Other Miscellaneous revenue category in FY20 includes one time lawsuit settelement, but that revenue source is expected to normalize around $3 million  going forward with projected FY25 revenue of $2.8 million.  Reimbursement of District Costs and court awarded Attorney's Fees make up the majority of that  revenue.  Historical trends are utilized in the projection due to the consistent pattern in the past with the exception of an one‐time anomaly such as FY20. When fund balances decline, the use of fund balance is represented in the graph as a source of revenue.  In FY20 there was a decline.  In FY23‐25, fund  balance in the General Fund is expected to decrease.   Finally, it should be noted that the General Fund receives much of its funding from the sewer service charges originally received into the revenue funds and later  transferred to the General Fund.  These revenues are left off of this graph because they are reported as revenues in the revenue funds.  This major source of  funding fluctuates based on balancing the needs of the General Fund against the needs of construction funds and special funds.   106 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 1101 - General Fund FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$56,099,523 $79,587,863 $41,408,513 $60,440,185 $66,397,458 $49,716,711 $14,102,382 Wastewater User Charge (375,315) (884,771) 299,342 (96,332) 948,182 1,183,600 1,458,237 Stormwater User Charge 15,961 6,321 ----- Taxes (42,518) (106,382)-897 --- Interest on Investments 1,079,585 64,654 356,600 315,323 672,056 457,034 254,352 Connection and Other Fees 2,087,882 2,090,923 2,054,000 2,647,808 2,305,000 2,305,000 2,305,000 Proceeds from Sale of Property 105,227 158,653 202,000 179,413 198,000 198,000 198,000 Rental Income 301,631 323,662 311,000 344,125 346,000 346,000 346,000 Miscellaneous 8,639,183 3,870,736 1,808,000 1,841,207 2,000,000 2,000,000 2,000,000 Total Revenues 11,811,636 5,523,795 5,030,942 5,232,442 6,469,238 6,489,634 6,561,589 Personnel Services 109,216,535 112,176,573 116,721,991 109,974,540 121,734,231 125,023,588 128,997,076 Supplies 15,442,618 16,716,261 19,025,236 19,182,523 19,526,467 19,935,094 20,353,730 Utilities 15,762,631 14,964,455 16,937,966 16,854,308 18,024,322 18,522,222 19,036,290 Contractual Services 44,662,388 46,873,332 52,071,643 53,421,190 55,055,955 57,243,206 57,666,301 Capital Outlay 8,619,175 7,600,174 5,764,600 4,980,357 5,396,200 5,509,520 5,625,220 Construction and Engineering 21,447,772 23,583,412 24,620,000 25,972,301 20,330,000 18,055,000 18,065,000 Interfund Labor Transfers (31,782,424) (31,334,944) (34,378,037) (31,130,800) (36,121,608) (37,272,054) (38,452,602) Total Expenditures 183,368,696 190,579,262 200,763,398 199,254,419 203,945,567 207,016,576 211,291,016 Net Operating Income (Loss) (171,557,059) (185,055,467) (195,732,456) (194,021,978) (197,476,329) (200,526,943) (204,729,426) Interfund Transfers 195,045,399 165,907,789 189,526,012 199,979,250 180,795,582 164,912,614 194,807,445 Increase (Decrease) in Fund Bal. 23,488,340 (19,147,678) (6,206,444) 5,957,272 (16,680,747) (35,614,329) (9,921,981) Percentage of Change 42%-24%-15%10%-25%-72%-70% FUND BALANCE E.O.P.$79,587,863 $60,440,185 $35,202,069 $66,397,458 $49,716,711 $14,102,382 $4,180,401 107 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 12804 - CCTV INSPECTION AND PHYSICAL INSPECTION OF SEWERS (2023)Various $3,000,000 5 12908 - CRITICAL INFRASTRUCTURE ASSESSMENT AND ASSET INVESTIGATION (2023)Various $1,700,000 11 12801 - FLOW METERING AND MONITORING (2022)Various $2,500,000 13 13087 - GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT A Various $75,000 22 13088 - GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT B Various $75,000 23 13089 - GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT C Various $75,000 24 13090 - GENERAL SERVICES AGREEMENT - PROPERTY APPRAISAL (2021) CONTRACT D Various $75,000 25 11109 - LOWER & MIDDLE RDP CSO CONTROLS SYSTEM IMPROVEMENTS (WATERSHED CONSULTAN Various $125,000 42 12006 - RADAR RAINFALL DATA (2020)Various $150,000 48 11153 - RDP TRIBUTARIES & UPPER RDP CSO CONTROLS & LOWER MERAMEC SYSTEM IMPROVEM Various $600,000 49 10766 - STREAM FLOW GAUGE OPERATION AND MAINTENANCE (USGS)Various $605,000 51 12806 - STREAM FLOW WATER QUALITY SAMPLING (2023)Various $350,000 52 13436 - WET WEATHER OPTIMIZATION STUDY Various $1,500,000 54 11146 - CSO VOLUME REDUCTION GREEN INFRASTRUCTURE Various $5,000,000 70 13078 - CSO VOLUME REDUCTION GREEN INFRASTRUCTURE - RIVER DES PERES Various $3,000,000 71 NUMBER OF PROJECTS: 15 FUND TOTAL:$18,830,000 (1) The Page refers to the page number in the Budget Supplement Appendix The above does not include the General Fund Project of $1.5 Million dollars for the Oracle Cloud Project. PROJECT LISTING 1101 - General Fund FY23 108 FY23 General Fund Budget by Expense Category Personnel Services $121.7 Supplies 19.5 Utilities 18.0 Contractual Services 55.1 Capital Outlay 5.4 TOTAL $219.7 ($s in millions) $121.7 $19.5 $18.0 $55.1 $5.4 FY23 Personnel Supplies Utilities Contracted Services Capital Outlay 109 FY23 SIGNIFICANT BUDGET CHANGES GENERAL FUND Personnel Services – 51000 Natural Account Group Personnel Services increased approximately $5 million or 4% from the FY22 Budget. This increase reflects a $2.7 million increase in Salaries & Wages including FICA, $1.6 million increase for the Defined Benefit and the Defined Contribution Plans, and $764 thousand for Group Insurance. All other changes are less significant. Supplies – 52000 Natural Account Group Supplies increased $501 thousand, or 3% compared to the FY22 Budget. Computer Supplies increased $345 thousand and Chemicals increased $257 thousand. All other changes are less significant. Utilities – 53000 Natural Account Group Utilities are anticipated to increase $1.1 million or 6% from the FY22 Budget. The largest contributor of this increase relates to Electricity. It is expected to increase by $865 thousand, and Natural Gas by $182 thousand at our treatment plants to continue to meet regulatory requirements. Contractual Services – 54000 Natural Account Group Contracted Services are anticipated to increase by $3.0 million or 6% from the FY22 Budget. Incremental budget increases of $1.0 million for business cases where $550 thousand related to systems to assist with Linear Asset Management Decisions and Integrated Wastewater Operations and Compliance Software, $223 thousand in the Finance area for three additional employees of which two relate to conversion of contracted staff to employees and another one in the Billing and Collections area to increase collection of delinquent revenue and $250 thousand related to outsourcing of payroll functions. In addition, an increase of $3.0 million largely related to the increase in Security added in the Executive Director department; $1.1 million for Collection Services and Bill Payment Services related to increase efforts for collection, and $702 thousand for Rate Commission relating to the upcoming rate commission process. The increases are offset by decreases of $671 thousand for Ash Hauling which generally happens every three years; $1.3 million for Building and Repair Services not expected to repeat in FY23; and $454 thousand for reduction in Janitorial primarily to reduction in ramped up COVID in FY22. All other changes are less significant. Capital Outlay – 55000 Natural Account Group Capital Outlay decreased $368 thousand or 6% from prior year. The decrease is the result of reductions related to various Processing and Auxiliary Equipment of $290 thousand, Motor Vehicles of $145 thousand, Instruments & Apparatus for $127 thousand and offset by increases in Structural Improvements of $115 thousand and Computer Equipment of $120 thousand. All other changes are less significant. 110 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Operating Expense Budget and Variances Budget Forecast $ Change from FY22 Budget % Change from FY22 Budget Total Budget $ Change from FY22 Budget % Change from FY22 BudgetFY22FY22FY23 51010 Salaries & Wages 75,505,260 69,743,967 (5,761,293)-8%78,030,809 2,525,549 3% 51020 Overtime 2,573,046 2,555,118 (17,928)-1%2,579,808 6,762 0% 51030 Compensatory Pay Accrual -42,866 42,866 100%-- - 51040 Sick Leave Accrual 804,360 808,356 3,996 0%828,480 24,120 3% 51050 Vacation Accrual 1,187,520 1,187,520 -0%1,223,160 35,640 3% 51060 Worker's Compensation Pay -113,990 113,990 100%-- - 51070 Board Member Fees 5,400 5,400 -0%3,750 (1,650)-31% 51080 Floating Holiday Accrual -73,579 73,579 100%-- - 51090 Civil Service Commision Fees 2,500 2,500 -0%2,500 -0% 51100 Emp Service & Incentive Awards 79,000 75,000 (4,000)-5%75,000 (4,000)-5% 51120 Membership & Licensing Fees 273,916 275,766 1,850 1%280,898 6,982 3% 51130 Education Assistance Program 175,000 175,000 -0%175,000 -0% 51210 FICA Taxes 5,972,992 5,250,951 (722,041)-14%6,166,712 193,720 3% 51220 Group Insurance 11,188,424 9,791,225 (1,397,199)-14%11,951,896 763,472 7% 51230 Pension Contributions-Defined Benefit Plan 11,990,000 11,990,000 -0%12,300,000 310,000 3% 51231 Pension Contributions-Defined Contribution Plan 1,906,723 2,583,088 676,365 26%3,074,487 1,167,764 61% 51233 DC Plan-Matching Contributions 768,926 613,963 (154,963)-25%873,092 104,166 14% 51240 Unemployment Insurance 25,000 25,000 -0%25,000 -0% 51300 Other Post Employment Benefits 1,900,000 1,724,120 (175,880)-10%1,725,000 (175,000)-9% 51510 Temporary Help 2,363,925 2,937,131 573,206 20%2,418,640 54,715 2% Total Personnel Services $116,721,991 $109,974,540 $(6,747,451)-6% $121,734,231 $5,012,240 4% 52010 Fuels,Lubricants,Gases 1,273,643 1,426,991 153,348 11%1,418,893 145,250 11% 52020 Motor Vehicle Parts & Equip 487,305 487,561 256 0%474,225 (13,080)-3% 52030 Machinery & Equipment Parts 4,657,844 4,794,674 136,830 3%4,618,140 (39,704)-1% 52040 Machinery & Equipment - Non- Capital 79,830 280,136 200,306 72%119,576 39,746 50% 52050 Construction & Bldg Supplies 2,868,965 2,715,868 (153,097)-6%2,773,250 (95,715)-3% 52070 Hardware 140,227 145,184 4,957 3%146,179 5,952 4% 52080 Hose Supplies 195,114 205,124 10,010 5%198,064 2,950 2% 52090 Electrical Supplies 1,412,005 1,192,398 (219,607)-18%1,331,510 (80,495)-6% 52100 Instrument Supplies 776,489 809,095 32,606 4%808,449 31,960 4% 52110 Chemical Supplies 3,735,476 3,716,033 (19,443)-1%3,992,150 256,674 7% 52120 Laboratory Supplies 133,281 134,281 1,000 1%139,970 6,689 5% 52130 Engineering & Drafting Supply 3,100 3,100 -0%3,100 -0% 111 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Operating Expense Budget and Variances Budget Forecast $ Change from FY22 Budget % Change from FY22 Budget Total Budget $ Change from FY22 Budget % Change from FY22 BudgetFY22FY22FY23 52150 Plumbing Supplies 434,204 464,392 30,188 7%456,054 21,850 5% 52160 Paint Supplies 55,563 63,931 8,368 13%63,075 7,512 14% 52170 Safety Supplies 610,832 534,787 (76,045)-14%503,994 (106,838)-17% 52220 Janitorial Supplies 165,655 165,525 (130)0%155,887 (9,768)-6% 52240 Hand Tools 386,546 456,992 70,446 15%390,115 3,569 1% 52280 Uniforms 333,281 336,620 3,339 1%354,067 20,786 6% 52300 Safety Footwear 187,200 186,847 (353)0%186,980 (220)0% 52310 Telephone/Communic Equip/Suppl 72,577 73,501 924 1%14,960 (57,617)-79% 52320 Office Supplies 111,904 111,032 (872)-1%108,340 (3,564)-3% 52330 Computer Supplies 232,800 241,361 8,561 4%577,787 344,987 148% 52340 Computer Equipment - Non- Capital 362,078 485,623 123,545 25%373,781 11,703 3% 52360 Grounds Supplies 27,495 27,645 150 1%27,320 (175)-1% 52370 Photo & Video Supplies 19,350 19,240 (110)-1%20,800 1,450 7% 52380 Publications/Training Supplies 155,117 154,617 (500)0%160,756 5,639 4% 52390 Administrative Supplies 77,480 75,130 (2,350)-3%80,470 2,990 4% 52400 Furniture & Office Equipment - Non-Capital 29,875 81,511 51,636 63%28,575 (1,300)-4% 52990 Inventory (I/D)-(201,943)(201,943)100%-- - 52991 Inventory Obsolence -(4,732)(4,732)100%-- - Total Supplies $19,025,236 $19,182,523 $157,288 1%$19,526,467 $501,232 3% 53060 Electric Usage 12,955,600 12,813,273 (142,327)-1%13,820,400 864,800 7% 53070 Natural Gas Usage 2,275,280 2,275,281 1 0%2,456,790 181,510 8% 53080 Water Usage 925,785 955,209 29,424 3%948,557 22,772 2% 53270 Telephone Usage 781,301 810,544 29,243 4%798,575 17,274 2% Total Usage $16,937,966 $16,854,308 $(83,658)0%$18,024,322 $1,086,356 6% 54010 Postage 2,075,330 2,086,170 10,840 1%2,223,330 148,000 7% 54050 Office System Services 4,404,730 4,390,587 (14,143)0%4,602,979 198,249 5% 54060 Printing Services 719,286 487,552 (231,734)-48%531,347 (187,939)-26% 54080 Advertising Services 378,800 368,800 (10,000)-3%591,300 212,500 56% 54100 Travel Expenses 260,267 261,618 1,351 1%291,209 30,942 12% 54120 Photo Services 7,500 6,000 (1,500)-25%7,500 -0% 54140 Training Programs/Seminar Fees 497,428 431,315 (66,113)-15%439,025 (58,403)-12% 54141 Required Training Programs 240,509 244,465 3,956 2%228,475 (12,034)-5% 54160 Data Imaging Services 37,300 32,300 (5,000)-15%52,000 14,700 39% 112 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Operating Expense Budget and Variances Budget Forecast $ Change from FY22 Budget % Change from FY22 Budget Total Budget $ Change from FY22 Budget % Change from FY22 BudgetFY22FY22FY23 54180 Courier And Freight 162,959 170,869 7,910 5%161,262 (1,697)-1% 54190 Property & Other Space Rental 61,620 63,620 2,000 3%104,420 42,800 69% 54350 Bill Payment Services 2,342,190 2,680,000 337,810 13%2,721,116 378,926 16% 54360 Banking Services Total 50,000 50,000 -0%50,000 -0% 54390 Hospital & Medical Services 203,000 203,000 -0%303,000 100,000 49% 54400 Judgments & Claims Settlements 25,000 25,000 -0%25,000 -0% 54420 Court Costs & Lien Fees 260,000 260,000 -0%260,000 -0% 54440 Easement Acquisitions/Fees 25,000 25,000 -0%34,000 9,000 36% 54450 Collection Services 6,900,000 6,850,000 (50,000)-1%7,602,000 702,000 10% 54455 Commission Fee - St. Louis County -37 37 100%-- - 54460 Commission Fee - St. Louis City -1 1 72%-- - 54470 Water Agency Data Services 610,000 520,000 (90,000)-17%550,000 (60,000)-10% 54520 Professional Service 13,647,445 14,317,585 670,140 5%17,108,554 3,461,109 25% 54530 Building Repairs & Services 2,813,190 3,122,426 309,236 10%1,501,415 (1,311,775)-47% 54540 Janitorial Services 1,659,794 1,565,719 (94,075)-6%1,205,800 (453,994)-27% 54550 Grounds Services 838,167 881,062 42,895 5%955,529 117,362 14% 54560 Motor Vehicle Services 356,228 393,566 37,338 9%369,428 13,200 4% 54570 Machinery & Equipment Services 3,385,030 3,123,726 (261,304)-8%3,338,935 (46,095)-1% 54580 Equipment Rental 482,423 425,579 (56,844)-13%483,448 1,025 0% 54590 Sewer Rep & Structure Cleaning 1,611,500 1,644,933 33,433 2%1,570,650 (40,850)-3% 54600 Electrical Repair Services 1,176,750 1,319,902 143,152 11%1,423,250 246,500 21% 54610 Instrument Repair Services 380,529 767,256 386,727 50%425,086 44,557 12% 54620 Plumbing Services 774,854 790,395 15,541 2%780,316 5,462 1% 54630 HVAC Services 550,004 778,702 228,698 29%439,562 (110,442)-20% 54640 Damage Repairs & Services 13,000 13,138 138 1%13,000 -0% 54650 Waste Hauling 1,632,266 1,627,016 (5,250)0%1,680,642 48,376 3% 54660 Ash Hauling 1,036,654 1,036,654 -0%365,222 (671,432)-65% 54670 Other Governmental Fees 1,189,834 1,190,054 220 0%1,160,866 (28,968)-2% 54680 Laboratory Testing Services 442,820 442,570 (250)0%635,490 192,670 44% 54690 Safety Services 112,737 117,322 4,585 4%114,050 1,313 1% 54700 Asbestos Removal Services 32,500 32,500 -0%30,000 (2,500)-8% 54710 Community Outreach Programs 216,500 216,250 (250)0%215,250 (1,250)-1% 54720 Tree Removal/Weed Spraying 458,500 458,500 -0%461,500 3,000 1% Total Contractual Services $52,071,643 $53,421,190 $1,349,547 3%$55,055,955 $2,984,312 6% 55030 Structural Improvements 125,000 222,787 97,787 44%240,000 115,000 92% 113 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Operating Expense Budget and Variances Budget Forecast $ Change from FY22 Budget % Change from FY22 Budget Total Budget $ Change from FY22 Budget % Change from FY22 BudgetFY22FY22FY23 55040 Processing Equipment 727,000 781,834 54,834 7%617,000 (110,000)-15% 55050 Auxiliary Equipment 188,000 195,271 7,271 4%8,500 (179,500)-95% 55060 Motor Vehicles 3,100,000 2,950,000 (150,000)-5%2,955,000 (145,000)-5% 55070 Machinery & Implements 512,000 203,000 (309,000)-152%472,000 (40,000)-8% 55080 Instruments & Apparatus 207,200 243,810 36,610 15%80,700 (126,500)-61% 55090 Furniture & Office Equipment 33,400 33,400 -0%31,500 (1,900)-6% 55110 Computer Equipment 872,000 350,255 (521,745)-149%991,500 119,500 14% Total Capital Outlay $5,764,600 $4,980,357 $(784,243)-16%$5,396,200 $(368,400)-6% Total General Fund Operating Expense $210,521,435 $204,412,919 $(6,108,516)-3% $219,737,175 $9,215,740 4% 114 Metropolitan St. Louis Sewer District General Fund Budget by Natural Account Group FY23 Budget Personnel Services Supplies Utilities Contractual Services Capital Outlay Budget FY23 Percent of Total Board of Trustees $4,350 $- $- $6,000 $- $10,350 0.0% Rate Commission - 1,000 - 701,000 - 702,000 0.3% Civil Service Commission 2,500 2,500 - 6,500 - 11,500 0.0% Secretary Treasurer Department 956,880 8,250 - 1,424,794 3,000 2,392,924 1.2% Executive Director Department 2,548,603 46,620 10,450 4,263,502 - 6,869,175 3.4% Human Resources Department 7,454,514 57,850 7,000 1,634,238 - 9,153,602 4.5% Finance Department 5,382,451 71,740 182,000 19,740,490 140,000 25,516,681 12.5% Information Technology Department 9,258,783 534,681 434,214 6,447,985 510,000 17,185,663 8.4% General Counsel Department 1,356,919 91,900 750 2,045,910 - 3,495,479 1.7% Operations Department 67,883,438 17,858,442 17,337,728 17,388,468 4,688,700 125,156,776 61.4% Engineering Department 26,885,794 853,484 52,180 1,397,067 54,500 29,243,024 14.3% Total General Fund Operating Expense $121,734,231 $19,526,467 $18,024,322 $55,055,955 $5,396,200 $219,737,174 107.7% Construction & Engineering ----- 20,330,000 10.0% Interfund Labor Transfers ----- (36,121,608) -17.7% Total General Fund Budget $121,734,231 $19,526,467 $18,024,322 $55,055,955 $5,396,200 $203,945,566 100.0% 115 Metropolitan St. Louis Sewer District General Fund Budget by Natural Account Group Variance - Increase (Decrease) FY23 Budget vs. FY22 Budget Personnel Services Supplies Utilities Contractual Services Capital Outlay Budget FY22 Budget FY23 Difference FY23 vs. FY22 Percent Change Board of Trustees $5,700 $- $- $4,000 $- $9,700 $10,350 $650 7% Rate Commission ------ 702,000 702,000 0% Civil Service Commission 2,500 2,500 - 6,500 - 11,500 11,500 - 0% Secretary Treasurer Department 918,695 8,500 - 1,570,884 6,000 2,504,079 2,392,924 (111,155) -4% Executive Director Department 2,330,436 39,920 12,000 1,267,571 - 3,649,928 6,869,175 3,219,248 88% Human Resources Department 7,352,183 56,850 8,600 2,350,412 - 9,768,045 9,153,602 (614,443) -6% Finance Department 5,033,539 66,940 201,100 18,792,399 400 24,094,378 25,516,681 1,422,303 6% Information Technology Department 9,010,694 509,965 417,472 6,462,687 414,000 16,814,818 17,185,663 370,845 2% General Counsel Department 1,278,225 88,750 600 2,044,717 - 3,412,292 3,495,479 83,186 2% Operations Department 64,867,397 17,745,907 16,245,166 18,445,343 5,238,200 122,542,013 125,156,776 2,614,764 2% Engineering Department 25,922,620 505,904 53,028 1,127,129 106,000 27,714,682 29,243,024 1,528,342 6% Total General Fund Operating Expense $116,721,991 $19,025,236 $16,937,966 $52,071,643 $5,764,600 $210,521,435 $219,737,174 $9,215,740 4% Construction & Engineering ----- 24,620,000 20,330,000 (4,290,000) -17% Interfund Labor Transfers ----- (34,378,037) (36,121,608) (1,743,571) 5% Total General Fund Budget $116,721,991 $19,025,236 $16,937,966 $52,071,643 $5,764,600 $200,763,398 $203,945,567 $3,182,169 2% 116 Metropolitan St. Louis Sewer District General Fund Budget by Natural Account Group Variance - Increase (Decrease) FY23 Budget vs. FY22 Forecast Personnel Services Supplies Utilities Contractual Services Capital Outlay Forecast FY22 Budget FY23 Difference FY23 vs. FY22 Percent Change Board of Trustees $5,700 $- $- $4,000 $- $9,700 $10,350 $650 7% Rate Commission - - - - - - 702,000 702,000 0% Civil Service Commission 2,500 2,500 - 6,500 - 11,500 11,500 - 0% Secretary Treasurer Department 877,488 8,500 - 1,577,745 6,000 2,469,733 2,392,924 (76,808) -3% Executive Director Department 2,309,267 39,520 12,100 1,268,014 - 3,628,901 6,869,175 3,240,275 89% Human Resources Department 6,942,972 56,850 8,600 3,395,652 - 10,404,074 9,153,602 (1,250,472) -12% Finance Department 4,701,700 65,915 202,690 18,428,303 400 23,399,008 25,516,681 2,117,673 9% Information Technology Department 8,424,734 609,465 417,472 6,354,394 314,000 16,120,066 17,185,663 1,065,598 7% General Counsel Department 1,299,771 88,750 600 2,044,717 - 3,433,838 3,495,479 61,640 2% Operations Department 61,615,285 17,791,039 16,159,818 19,258,390 4,544,502 119,369,034 125,156,776 5,787,742 5% Engineering Department 23,795,123 519,984 53,028 1,083,437 115,455 25,567,027 29,243,024 3,675,997 14% Total General Fund Operating Expense $109,974,540 $19,182,523 $16,854,308 $53,421,152 $4,980,357 $204,412,881 $219,737,174 $15,324,295 7% Construction & Engineering - - - - - 25,972,301 20,330,000 (5,642,301) -22% Interfund Labor Transfers - - - - - (31,130,800) (36,121,608) (4,990,808) 16% Tax Commission Fee - - - - - 38 - (38) -100% Total General Fund Budget $109,974,540 $19,182,523 $16,854,308 $53,421,152 $4,980,357 $199,254,419 $203,945,567 $4,691,148 2% 117 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection Total District Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 68,138,149 69,858,277 75,505,260 69,743,967 78,030,809 80,405,131 82,811,410 51020 Overtime 2,577,573 1,596,189 2,573,046 2,555,118 2,579,808 2,657,202 2,736,923 51030 Compensatory Pay Accrual (54,702)(908)-42,866 --- 51040 Sick Leave Accrual 788,826 799,410 804,360 808,356 828,480 853,334 878,934 51050 Vacation Accrual 1,259,699 3,289,246 1,187,520 1,187,520 1,223,160 1,259,855 1,297,650 51060 Worker's Compensation Pay 65,067 82,657 -113,990 --- 51070 Board Member Fees 1,525 1,600 5,400 5,400 3,750 3,750 3,750 51080 Floating Holiday Accrual 94,782 53,879 -73,579 --- 51090 Civil Service Commision Fees 1,023 1,745 2,500 2,500 2,500 2,552 2,606 51100 Emp Service & Incentive Awards 44,954 15,778 79,000 75,000 75,000 76,575 78,183 51120 Membership & Licensing Fees 182,756 237,081 273,916 275,766 280,898 286,761 292,747 51130 Education Assistance Program 111,037 73,700 175,000 175,000 175,000 178,675 182,427 51210 FICA Taxes 5,159,439 5,254,936 5,972,992 5,250,951 6,166,712 6,354,111 6,544,285 51220 Group Insurance 8,953,150 8,694,662 11,188,424 9,791,225 11,951,896 12,876,380 13,873,114 51230 Pension Contributions-Defined Benefit Plan 13,062,014 12,771,525 11,990,000 11,990,000 12,300,000 11,700,000 11,700,000 51231 Pension Contributions-Defined Contribution Plan 2,565,665 2,349,920 1,906,723 2,583,088 3,074,487 3,075,021 3,075,021 51233 DC Plan-Matching Contributions -583,922 768,926 613,963 873,092 873,092 873,092 51240 Unemployment Insurance 10,119 13,031 25,000 25,000 25,000 25,750 26,522 51300 Other Post Employment Benefits 1,419,015 1,724,120 1,900,000 1,724,120 1,725,000 1,863,000 2,012,040 51510 Temporary Help 4,836,444 4,775,801 2,363,925 2,937,131 2,418,640 2,532,399 2,608,371 Total Personnel Services $109,216,535 $112,176,573 $116,721,991 $109,974,540 $121,734,231 $125,023,588 $128,997,076 52010 Fuels,Lubricants,Gases 1,108,187 1,007,918 1,273,643 1,426,991 1,418,893 1,448,690 1,479,112 52020 Motor Vehicle Parts & Equip 404,398 382,539 487,305 487,561 474,225 484,184 494,352 52030 Machinery & Equipment Parts 3,108,711 4,524,405 4,657,844 4,794,674 4,618,140 4,715,121 4,814,138 52040 Machinery & Equipment - Non- Capital 59,830 109,341 79,830 280,136 119,576 122,087 124,651 52050 Construction & Bldg Supplies 2,007,224 2,304,179 2,868,965 2,715,868 2,773,250 2,831,488 2,890,950 52070 Hardware 111,871 132,111 140,227 145,184 146,179 149,249 152,383 52080 Hose Supplies 169,488 190,629 195,114 205,124 198,064 202,223 206,470 52090 Electrical Supplies 965,222 1,272,242 1,412,005 1,192,398 1,331,510 1,359,472 1,388,021 52100 Instrument Supplies 635,615 806,159 776,489 809,095 808,449 825,426 842,760 52110 Chemical Supplies 3,182,251 2,932,415 3,735,476 3,716,033 3,992,150 4,280,185 4,370,069 52120 Laboratory Supplies 156,472 102,357 133,281 134,281 139,970 142,909 145,910 52130 Engineering & Drafting Supply 741 579 3,100 3,100 3,100 3,165 3,232 118 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection Total District Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 52150 Plumbing Supplies 385,625 446,404 434,204 464,392 456,054 465,631 475,409 52160 Paint Supplies 39,769 41,421 55,563 63,931 63,075 64,400 65,752 52170 Safety Supplies 433,059 501,487 610,832 534,787 503,994 514,578 525,384 52220 Janitorial Supplies 141,610 120,356 165,655 165,525 155,887 159,161 162,503 52240 Hand Tools 419,211 441,308 386,546 456,992 390,115 398,307 406,672 52280 Uniforms 295,864 287,739 333,281 336,620 354,067 361,502 369,094 52300 Safety Footwear 130,595 164,842 187,200 186,847 186,980 190,498 194,499 52310 Telephone/Communic Equip/Suppl 26,467 23,622 72,577 73,501 14,960 15,274 15,595 52320 Office Supplies 87,472 86,926 111,904 111,032 108,340 110,105 112,417 52330 Computer Supplies 476,404 559,973 232,800 241,361 577,787 385,721 393,821 52340 Computer Equipment - Non- Capital 570,075 354,538 362,078 485,623 373,781 381,630 389,645 52360 Grounds Supplies 17,623 19,446 27,495 27,645 27,320 27,894 28,479 52370 Photo & Video Supplies 8,113 3,943 19,350 19,240 20,800 21,237 21,683 52380 Publications/Training Supplies 154,939 122,603 155,117 154,617 160,756 164,132 167,579 52390 Administrative Supplies 47,641 36,185 77,480 75,130 80,470 81,649 83,364 52400 Furniture & Office Equipment - Non-Capital 5,224 85,931 29,875 81,511 28,575 29,175 29,788 52990 Inventory (I/D)302,366 (341,096)-(201,943)--- 52991 Inventory Obsolence (9,448)(4,239)-(4,732)--- Total Supplies $15,442,618 $16,716,261 $19,025,236 $19,182,523 $19,526,467 $19,935,094 $20,353,730 53060 Electric Usage 12,238,301 11,521,974 12,955,600 12,813,273 13,820,400 14,138,269 14,463,449 53070 Natural Gas Usage 1,879,662 1,813,980 2,275,280 2,275,281 2,456,790 2,530,494 2,606,408 53080 Water Usage 728,958 882,766 925,785 955,209 948,557 1,014,956 1,086,003 53270 Telephone Usage 915,710 745,735 781,301 810,544 798,575 838,504 880,429 Total Usage $15,762,631 $14,964,455 $16,937,966 $16,854,308 $18,024,322 $18,522,222 $19,036,290 54010 Postage 1,983,222 1,974,668 2,075,330 2,086,170 2,223,330 2,270,020 2,317,690 54050 Office System Services 3,652,270 3,797,771 4,404,730 4,390,587 4,602,979 4,681,774 4,780,091 54060 Printing Services 537,003 442,401 719,286 487,552 531,347 544,241 555,670 54080 Advertising Services 293,641 252,912 378,800 368,800 591,300 348,467 355,785 54100 Travel Expenses 246,844 69,884 260,267 261,618 291,209 296,277 302,376 54120 Photo Services 6,000 -7,500 6,000 7,500 7,657 7,818 54140 Training Programs/Seminar Fees 338,390 266,523 497,428 431,315 439,025 426,496 435,059 54141 Required Training Programs 173,001 277,123 240,509 244,465 228,475 233,273 238,172 54160 Data Imaging Services 58,894 13,566 37,300 32,300 52,000 53,092 54,207 119 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection Total District Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 54180 Courier And Freight 117,891 123,667 162,959 170,869 161,262 163,627 167,064 54190 Property & Other Space Rental 107,214 84,104 61,620 63,620 104,420 106,613 108,852 54350 Bill Payment Services 1,951,825 2,399,398 2,342,190 2,680,000 2,721,116 2,778,259 2,836,603 54360 Banking Services Total 33,317 50,335 50,000 50,000 50,000 51,050 52,122 54370 Board Of Election Commission 82,510 647,438 ---1,500,000 - 54390 Hospital & Medical Services 123,084 119,194 203,000 203,000 303,000 309,363 315,860 54400 Judgments & Claims Settlements -1,810 25,000 25,000 25,000 25,525 26,061 54420 Court Costs & Lien Fees 155,378 (39,461)260,000 260,000 260,000 265,460 271,035 54440 Easement Acquisitions/Fees 35,438 32,749 25,000 25,000 34,000 34,714 35,443 54450 Collection Services 5,681,200 6,648,418 6,900,000 6,850,000 7,602,000 7,761,642 7,924,636 54455 Commission Fee - St. Louis County 201 (365)-37 --- 54460 Commission Fee - St. Louis City 6 (11)-1 --- 54470 Water Agency Data Services 514,888 517,856 610,000 520,000 550,000 561,550 573,343 54520 Professional Service 14,212,191 11,192,903 13,647,445 14,317,585 17,108,554 16,548,919 16,896,425 54530 Building Repairs & Services 1,517,433 1,750,506 2,813,190 3,122,426 1,501,415 1,532,945 1,565,137 54540 Janitorial Services 1,246,890 1,734,626 1,659,794 1,565,719 1,205,800 1,231,122 1,256,975 54550 Grounds Services 711,333 709,760 838,167 881,062 955,529 975,595 996,083 54560 Motor Vehicle Services 272,721 311,809 356,228 393,566 369,428 380,511 391,926 54570 Machinery & Equipment Services 1,619,474 3,884,258 3,385,030 3,123,726 3,338,935 3,415,731 3,494,292 54580 Equipment Rental 630,140 606,153 482,423 425,579 483,448 497,951 512,890 54590 Sewer Rep & Structure Cleaning 1,899,255 1,605,122 1,611,500 1,644,933 1,570,650 1,680,596 1,798,237 54600 Electrical Repair Services 766,838 1,064,250 1,176,750 1,319,902 1,423,250 1,494,413 1,569,133 54610 Instrument Repair Services 319,089 356,936 380,529 767,256 425,086 434,013 443,127 54620 Plumbing Services 919,311 1,026,392 774,854 790,395 780,316 796,702 813,433 54630 HVAC Services 394,206 494,790 550,004 778,702 439,562 448,793 458,217 54640 Damage Repairs & Services 3,366 3,566 13,000 13,138 13,000 13,273 13,552 54650 Waste Hauling 1,678,333 1,504,330 1,632,266 1,627,016 1,680,642 1,715,935 1,751,970 54660 Ash Hauling 338,375 541,696 1,036,654 1,036,654 365,222 985,492 1,618,787 54670 Other Governmental Fees 899,002 1,126,421 1,189,834 1,190,054 1,160,866 1,185,244 1,210,134 54680 Laboratory Testing Services 408,319 423,699 442,820 442,570 635,490 648,835 662,461 54690 Safety Services 83,239 70,704 112,737 117,322 114,050 116,445 118,890 54700 Asbestos Removal Services 103,761 57,306 32,500 32,500 30,000 30,630 31,273 54710 Community Outreach Programs 178,865 257,820 216,500 216,250 215,250 219,770 224,385 54720 Tree Removal/Weed Spraying 364,501 406,253 458,500 458,500 461,500 471,192 481,087 54810 I(D) Landfill Closure Cost 3,529 64,055 ----- 120 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection Total District Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 Total Contractual Services $44,662,388 $46,873,332 $52,071,643 $53,421,190 $55,055,955 $57,243,206 $57,666,301 55030 Structural Improvements 257,789 889,849 125,000 222,787 240,000 245,040 250,186 55040 Processing Equipment 3,305,464 2,247,882 727,000 781,834 617,000 629,957 643,186 55050 Auxiliary Equipment 366,018 1,382 188,000 195,271 8,500 8,678 8,861 55060 Motor Vehicles 2,957,527 3,053,681 3,100,000 2,950,000 2,955,000 3,017,055 3,080,413 55070 Machinery & Implements 491,848 667,745 512,000 203,000 472,000 481,912 492,032 55080 Instruments & Apparatus 523,095 82,966 207,200 243,810 80,700 82,395 84,125 55090 Furniture & Office Equipment (4,000)99,208 33,400 33,400 31,500 32,162 32,837 55110 Computer Equipment 579,894 557,462 872,000 350,255 991,500 1,012,321 1,033,580 55115 Intangible (Software)141,540 ------ Total Capital Outlay $8,619,175 $7,600,174 $5,764,600 $4,980,357 $5,396,200 $5,509,520 $5,625,220 Total General Fund Operating Expense $193,703,347 $198,330,795 $210,521,435 $204,412,919 $219,737,175 $226,233,630 $231,678,617 121 FY23 BUDGET 122 BOARD OF TRUSTEES Board of Trustees Executive Director General Counsel Rate Commission Internal Auditor Civil Service Commission Information Technology Operations Engineering Finance Human Resources Secretary-Treasurer 123 Board of Trustees Mission 1. Develop public policies through official action, to meet MSD’s responsibilities for sanitation, storm flow and protection of water resources. 2. Develop general strategies to direct and supervise the Executive Director in the implementation of official policies and programs. 3. Generally oversee the implementation of appropriate recommendations contained in various internal and contracted studies; i.e. the Independent Auditor’s Management Letter, Pension Fund Investment Consultant, Financial Advisors, and the Internal Auditor. 4. Direct and supervise the activities of the Secretary-Treasurer and the Internal Auditor. DESCRIPTION OF SERVICES Pursuant to the provisions of the Plan and subject to the limitations imposed by the Constitution of the State of Missouri, all powers of the District are vested in the Board of Trustees who enact District ordinances, adopt budgets, and determine policies (Section 1.020 of the Plan). The Board of Trustees appoints the Executive Director, who executes the ordinances and administers the government of the District and all subdistricts (Sect. 6.010 of the Plan), and the Secretary-Treasurer (Sect. 7.020 of the Plan), and the Internal Auditor (Sect. 7.030 of the Plan). 124 125 126 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T1010 - Board of Trustees Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51070 Board Member Fees 1,525 1,600 5,400 5,400 3,750 3,750 3,750 51120 Membership & Licensing Fees -18 300 300 600 600 600 Total Personnel Services $1,525 $1,618 $5,700 $5,700 $4,350 $4,350 $4,350 52390 Administrative Supplies 76 ------ Total Supplies $76 $ -$ -$ -$ -$ -$ - 54140 Training Programs/Seminar Fees --4,000 4,000 6,000 6,000 6,000 54180 Courier And Freight 89 ------ Total Contractual Services $89 $ -$4,000 $4,000 $6,000 $6,000 $6,000 Total General Fund Operating Expense $1,690 $1,618 $9,700 $9,700 $10,350 $10,350 $10,350 127 FY23 BUDGET 128 RATE COMMISSION Board of Trustees Executive Director General Counsel Secretary-Treasurer Internal Auditor Human Resources Operations Finance Engineering Information Technology Civil Service Commission Rate Commission 129 Rate Commission Mission Any change in a rate recommended to the Board by the Rate Commission shall be accompanied by a statement of the Rate Commission that the proposed rate change, and all portions thereof: 1. Is consistent with constitutional, statutory or common law as amended from time to time. 2. Enhances the District’s ability to provide adequate sewer and drainage systems and facilities, or related services. 3. Is consistent with and not in violation of any covenant or provision relating to any outstanding bonds or indebtedness of the District. 4. Does not impair the ability of the District to comply with applicable Federal or State laws or regulations as amended from time to time. 5. Imposes a fair and reasonable burden on all classes of ratepayers. DESCRIPTION OF SERVICES There shall be a rate commission (“Rate Commission”) to review and make recommendations to the Board regarding all proposed changes in wastewater rates, stormwater rates, and tax rates or change in the structure of any of the foregoing (“Rates”). 130 131 132 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T1410 - Rate Commission Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 52320 Office Supplies 17 ---500 -- 52390 Administrative Supplies 243 ---500 -- Total Supplies $260 $ -$ -$ -$1,000 $ -$ - 54080 Advertising Services 194 (16)--250,000 -- 54180 Courier And Freight ----1,000 -- 54520 Professional Service 4,342 ---450,000 -- Total Contractual Services $4,535 $16 $ -$ -$701,000 $ -$ - Total General Fund Operating Expense $4,795 $16 $ - $ -$702,000 $ -$ - 133 FY23 BUDGET 134 CIVIL SERVICE COMMISSION Board of Trustees Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Human Resources Operations Finance Civil Service Commission Information Technology Engineering 135 Civil Service Commission Mission The Civil Service Commission shall: 1. Advise the Board, Executive Director, and Human Resources Director on problems concerning personnel administration.   2. Make any investigation which it may consider desirable concerning personnel administration in the District service. 3. Recommend Civil Service Rules and revisions to the Civil Service Rules, to the Board. 4. Hear appeals from disciplinary action, administrative action, and other matters within the jurisdiction of the Commission. 5. Advise, assist, and cooperate in fostering the interest of institutions of learning and civic, professional, and employee organizations in the improvement of personnel standards and conditions in the District. DESCRIPTION OF SERVICES There shall be a civil service commission to hold public hearings upon proposed Civil Service Rules recommended by the Human Resources Director or by the Civil Service Commission. After such hearing, the Commission shall approve or reject the rules wholly or in part, or may modify them and approve them as so modified. The rules approved by the Commission shall then be submitted to the Board and shall become effective when adopted by ordinance. Such rules and ordinances shall include such provisions as may be necessary to establish a merit system for all positions in the classified service, and shall include a prohibition against the appointment, promotion, reduction, suspension, or removal of any officer or employee in the classified service, or seeking admission thereto, without just cause or because of his race, creed or color, or because of his political, religious, or union opinions or affiliations, except affiliations with any group or organization which seeks or advocates the overthrow of the government of the United States by force or violence or because of any other reason prohibited by law. 136 137 138 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T2020 - Civil Service Commission Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51090 Civil Service Commision Fees 1,023 1,745 2,500 2,500 2,500 2,552 2,606 Total Personnel Services $1,023 $1,745 $2,500 $2,500 $2,500 $2,552 $2,606 52090 Electrical Supplies -27 ----- 52390 Administrative Supplies -1,798 2,500 2,500 2,500 2,552 2,606 Total Supplies $ -$1,825 $2,500 $2,500 $2,500 $2,552 $2,606 54180 Courier And Freight --1,500 1,500 1,500 1,531 1,564 54520 Professional Service 3,242 3,683 5,000 5,000 5,000 5,105 5,212 Total Contractual Services $3,242 $3,683 $6,500 $6,500 $6,500 $6,636 $6,776 Total General Fund Operating Expense $4,265 $7,253 $11,500 $11,500 $11,500 $11,741 $11,988 139 FY23 BUDGET 140 EXECUTIVE DIRECTOR Public Affairs Board of Trustees General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Human Resources Operations Finance Executive Director Security Engineering Information Technology Executive Director Diversity District Administration 141 Executive Director Mission The Mission of the Executive Director’s Department is to ensure all affairs of the District are in accordance with the District’s Charter, the policies of the Board of Trustees, inform and engage stakeholders regarding the services they receive from MSD, and the District’s importance to the community. Fiscal Year 2021 Accomplishments 1. Develop draft employee talking points protocol for Stormwater Capital Program. (Strategy 1, Objective 1) 2. Gathered employee input for employee talking points protocol for Stormwater Capital Program. (Strategy 1, Objective 1) 3. Developed plan to engage stakeholder groups for specific deliverables for Stormwater Capital Program. (Strategy 1, Objectives 1 & 2) 4. Develop and execute communications plan for Wastewater Bond Election in April 2024. (Strategy 1, Objectives 1 & 2) 5. Develop and execute communications plan for Stormwater Bond Election in April 2024. (Strategy 1, Objectives 1 & 2) 6. Evaluate leveraging MSD’s 70th anniversary in 2024 in conjunction with the stormwater initiative. (Strategy 1, Objective 1) 142 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs d) Lead education and outreach activities among key stakeholders and community partners to advance public understanding and awareness of MSD's roles and initiatives in improving the environmental quality within MSD's service area. f) Implement communications platform (MSDPC Connect) to keep stakeholders informed of District related Capital Project activities. 3.Execute Diversity and associated Outreach Programs b) Continue collaboration and outreach with youth programs focused on early development of construction industry workers. c) Collaborate with area programs focused on increasing opportunities for hiring low income, unemployed and underemployed individuals for District projects. e) Leverage 10-year anniversary of Community Benefits Agreement to increase awareness of MSD programs and positive impacts in the community. 2 Manage the District's costs and revenues to optimize financial impacts. 3.Maximize Long-Term Financing Plans for District Needs d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 4 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues a) Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for an equitable fee structure. 2.Promote Appropriate Regulatory and Legislative Initiatives that Impact All Areas of District Operations a) Advocate for reasonable and affordable numeric nutrient wastewater effluent limits. b) Renew the regional General Permit 44 issued by the U.S. Army Corps of Engineers to streamline stormwater and sanitary sewer infrastructure maintenance and repair. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. 4.Implement safety and security training to support a safe work environment a) Assess security monitoring and access issues in the field and at all facilities. b) Identify gaps in security, safety and incident response and reporting. Department FY23 Strategic Business Plan Address customer and regulatory needs through a comprehensive infrastructure management program. Create a learning and business-oriented culture based on competency and accountability. FY23 Q1 Q2 Q3 Q4 Promote appropriate standards through proactive regulatory and legislative involvement. 143 144 145 146 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T3000 - Executive Director Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 1,427,362 1,464,163 1,574,435 1,567,954 1,717,551 1,769,077 1,822,150 51020 Overtime -8 ----- 51100 Emp Service & Incentive Awards -4,500 9,000 5,000 5,000 5,105 5,212 51120 Membership & Licensing Fees 127,137 117,862 131,755 131,755 134,468 137,292 140,175 51210 FICA Taxes 98,373 101,865 120,444 104,057 131,393 135,334 139,394 51220 Group Insurance 177,231 173,780 224,884 199,490 237,022 255,347 275,125 51230 Pension Contributions-Defined Benefit Plan 196,904 212,136 201,073 215,238 224,682 213,722 213,722 51231 Pension Contributions-Defined Contribution Plan 75,136 61,096 49,175 68,331 76,602 76,602 76,602 51233 DC Plan-Matching Contributions -15,005 19,670 17,442 21,886 21,886 21,886 Total Personnel Services $2,102,143 $2,150,414 $2,330,436 $2,309,267 $2,548,603 $2,614,366 $2,694,266 52070 Hardware 4 ------ 52090 Electrical Supplies 78 ------ 52100 Instrument Supplies 4 ------ 52170 Safety Supplies 164 ------ 52280 Uniforms 4,368 ------ 52300 Safety Footwear 1,725 2,302 3,000 3,000 3,250 3,318 3,388 52310 Telephone/Communic Equip/Suppl 605 288 ----- 52320 Office Supplies 2,200 3,920 2,770 2,470 3,270 3,339 3,409 52330 Computer Supplies 3,274 240 --1,500 1,531 1,564 52340 Computer Equipment - Non- Capital 919 1,562 --1,500 1,531 1,564 52370 Photo & Video Supplies 823 139 2,000 2,000 4,000 4,084 4,170 52380 Publications/Training Supplies 779 253 750 750 750 766 782 52390 Administrative Supplies 25,265 14,699 31,400 31,300 32,350 33,029 33,723 52400 Furniture & Office Equipment - Non-Capital 1,828 ------ Total Supplies $42,036 $23,403 $39,920 $39,520 $46,620 $47,599 $48,599 53270 Telephone Usage 13,425 13,002 12,000 12,100 10,450 10,973 11,521 Total Usage $13,425 $13,002 $12,000 $12,100 $10,450 $10,973 $11,521 54050 Office System Services 14,900 -450 370 450 459 469 54060 Printing Services 5,748 10,000 10,000 10,000 10,000 10,210 10,424 54080 Advertising Services 132,607 139,103 158,000 158,000 155,500 158,765 162,100 54100 Travel Expenses 12,571 230 5,221 5,994 18,432 18,819 19,214 147 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T3000 - Executive Director Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 54120 Photo Services 6,000 -7,500 6,000 7,500 7,657 7,818 54140 Training Programs/Seminar Fees 7,245 1,470 5,050 5,050 11,520 11,762 12,009 54180 Courier And Freight 400 -50 50 50 51 52 54520 Professional Service 1,120,377 584,020 878,800 878,800 3,859,200 3,940,243 4,022,988 54530 Building Repairs & Services 0 ------ 54560 Motor Vehicle Services 1,587 2,953 3,500 5,000 3,100 3,193 3,289 54710 Community Outreach Programs 174,368 228,185 199,000 198,750 197,750 201,903 206,143 Total Contractual Services $1,475,804 $965,961 $1,267,571 $1,268,014 $4,263,502 $4,353,063 $4,444,507 Total General Fund Operating Expense $3,633,409 $3,152,780 $3,649,928 $3,628,901 $6,869,175 $7,026,001 $7,198,892 148 SECRETARY- TREASURER Secretary Treasurer Information Governance Secretary- Treasurer Board of Trustees Executive Director General Counsel Rate Commission Internal Auditor Civil Service Commission Information Technology Operations Engineering Audit Finance Human Resources Secretary-Treasurer 149 Secretary-Treasurer Mission Secretary/Treasurer serves as Secretary to the Board of Trustees, manages District funds, provides administrative support and oversight to the Audit function and the Information Governance program, and provides service to all customers. Fiscal Year 2021 Accomplishments 1. Maintained FY21 department spend at levels outlined in the 2019 Rate Commission. (Strategy 2, Objective 2) 2. Secured approximately $157 million of Senior Bonds proceeds for capital improvements. (Strategy 2, Objective 3) 3. Secured approximately $125 million of Subordinated Debt for capital improvements. (Strategy 2, Objective 3) 4. Refunded $11.4 million of outstanding bonds with new tax-exempt bonds, reducing future debt service payments by $7.5 million. (Strategy 2, Objective 3) 5. Amended 2 Subordinated Debt loan agreements to reduce future debt service by $2.8 million. (Strategy 2, Objective 3) 6. Continued to maintain strong credit ratings with all three rating agencies: S & P (AAA rating), Moody’s (Aa1 rating), and Fitch (AA+ rating) (Strategy 2, Objective 3) 7. Updated policies and continued training and implementation of Electronic Records Cleanup and Enterprise Content Management solution pursuant to the Information Governance Plan. (Strategy 3, Objective 1) 150 District Strategies Objectives Milestones 2 Manage the District's costs and revenues to optimize financial impacts. 2.Identify and Implement Cost Savings Initiatives a) Continue implementation of integrated payables (i.e., e-payments) and evaluate results. 3.Maximize Long-Term Financing Plans for District Needs d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 1. Implement Information Governance Program That Meets the District's Records & Information Discovery, Compliance and Information Security Policies. a) Complete inaugural Information Governance audit. b) Address and mitigate risk identified by the District-wide Data Risk Assessment for data stored in IT Systems. 3.Oracle EBS Upgrade and Outsources Payroll & Benefits a) Continue implementation of HRMS, Finance, Treasury, Capital Projects and Purchasing. b) User Acceptance, Training, and Go Live. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. 4.Enhance Reliability of Information Technology Infrastructure b) Complete the development of the Technology Security Risk Program through the introduction of additional governance processes, policies and an employee security awareness program to further protect MSD hardware/software/information assets. c) Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Department FY23 Strategic Business Plan Address customer and regulatory needs through a comprehensive infrastructure management program. Create a learning and business-oriented culture based on competency and accountability. FY23 Q1 Q2 Q3 Q4 151 152 153 154 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T1100 - Secretary Treasurer Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 651,491 668,963 678,774 655,113 702,584 819,861 841,571 51020 Overtime 131 66 ----- 51120 Membership & Licensing Fees 2,609 2,216 3,279 3,279 3,895 3,954 4,014 51210 FICA Taxes 44,361 46,161 51,926 41,617 53,748 62,719 64,380 51220 Group Insurance 78,804 74,817 93,332 76,219 86,097 104,426 111,603 51230 Pension Contributions-Defined Benefit Plan 55,127 58,699 55,545 59,931 62,660 59,603 59,603 51231 Pension Contributions-Defined Contribution Plan 41,493 35,208 25,599 33,530 37,253 43,653 43,653 51233 DC Plan-Matching Contributions -7,725 10,239 7,799 10,644 10,644 10,644 Total Personnel Services $874,015 $893,855 $918,695 $877,488 $956,880 $1,104,861 $1,135,468 52020 Motor Vehicle Parts & Equip 8 ------ 52320 Office Supplies 785 571 1,800 1,800 1,300 1,327 1,355 52330 Computer Supplies 17 ------ 52380 Publications/Training Supplies 4,608 650 6,000 6,000 6,250 6,381 6,515 52390 Administrative Supplies 223 -700 700 700 715 730 52400 Furniture & Office Equipment - Non-Capital 4,000 ------ Total Supplies $9,642 $1,221 $8,500 $8,500 $8,250 $8,423 $8,600 54050 Office System Services 11,031 24,012 25,000 31,861 40,000 40,840 41,698 54080 Advertising Services 8,783 6,524 25,000 25,000 10,000 10,210 10,424 54100 Travel Expenses 5,069 5,272 3,375 3,375 7,994 8,191 8,350 54140 Training Programs/Seminar Fees 2,214 4,000 3,800 3,800 3,200 3,215 3,230 54160 Data Imaging Services -7,452 --15,000 15,315 15,637 54180 Courier And Freight 4,881 6,639 7,000 7,000 10,000 10,210 10,424 54190 Property & Other Space Rental 46,369 40,000 --42,000 42,882 43,783 54360 Banking Services Total 33,317 50,335 50,000 50,000 50,000 51,050 52,122 54370 Board Of Election Commission 82,510 647,438 ---1,500,000 - 54400 Judgments & Claims Settlements -47 ----- 54520 Professional Service 2,093,967 1,073,107 1,455,209 1,455,209 1,245,600 1,271,758 1,298,465 54530 Building Repairs & Services --1,500 1,500 1,000 1,021 1,042 Total Contractual Services $2,288,141 $1,864,826 $1,570,884 $1,577,745 $1,424,794 $2,954,691 $1,485,174 55090 Furniture & Office Equipment (4,000)-3,000 3,000 1,500 1,531 1,564 155 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T1100 - Secretary Treasurer Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 55110 Computer Equipment --3,000 3,000 1,500 1,531 1,564 Total Capital Outlay $4,000 $ -$6,000 $6,000 $3,000 $3,063 $3,127 Total General Fund Operating Expense $3,167,797 $2,759,903 $2,504,079 $2,469,733 $2,392,924 $4,071,038 $2,632,370 156 HUMAN RESOURCES Director of Human Resources Benefits & Compensation Insurance & Safety Talent Development Board of Trustees Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Information Technology Operations Human Resources Engineering Finance 157 Human Resources Mission The Human Resources Department is a professional services team supporting a learning and business-oriented culture based on accountability, such that we:  Assist the District and its employees to enhance skills, performance, and work satisfaction  Support the District to achieve the Strategic Business Operating Plan  Ensure fair, equitable employee treatment and recognition  Manage the District’s loss prevention programs We measure our success by our customers’ satisfaction with our performance in accomplishing mutual objectives. Fiscal Year 2021 Accomplishments: TALENT DEVELOPMENT   1. Utilized LMS as a communications tool (Legal Holds, Policies, Updates, etc.). (Strategy 6, Objective 1)  2. Developed online safety training (DEC). (Strategy 6, Objective 3)  3. Pre‐employment assessment utilization for various positions. (Strategy 6, Objective 1)  4. Revamped Training Agreements for MMT and Upward Mobility. (Strategy 6, Objective 3)  5. Interview training (for Interviewees). (Strategy 6, Objective 2)  6. Implemented Tuition Reimbursement (Educational Assistance Replacement). (Strategy 6, Objective 2)  7. Coordinated Training Program (CSTT, MMT, TPOT, Grade 13, and Upward Mobility). (Strategy 6, Objective 3)    BENEFITS & COMPENSATION   8. Reviewed Wellness Program which identified a need for a greater focus on preventive screenings. (Strategy 2, Objective 2)     9. Coordinated with Missouri Baptist to bring onsite mammogram screening for our employees. (Strategy 2, Objective 2)       INSURANCE & SAFETY  10. Contracted Hudson Security to conduct a risk/threats assessment with Operations Yard supervisors and employees.  (Strategy 6, Objective 6)  11. Utilized collected data to expand security services in high crime areas where crews perform work.  (Strategy 6, Objective 6)  12. Assessed and upgraded security monitoring equipment.  Adjusted employee access control at all District facilities. (Strategy 6, Objective 6)  13. Established a Safety Plan and Job Hazard Analysis approach for Operations’ Hazardous MHI Projects. (Strategy 2, Objective 2)  14. Utilized a TPA – TMG to conduct a safety audit and refine Safety Coordinator roles and responsibilities. (Strategy 2, Objective 2)  15. Met with all facility managers to discuss Worker’s Compensation statistics &recommendations to decrease. (Strategy 6, Objective 3)  158 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 3.Execute Diversity and associated Outreach Programs b) Continue collaboration and outreach with youth programs focused on early development of construction industry workers. d) Identify opportunities which incentivizes women and minorities to enter and participate in the sewer construction industry. 2 Manage the District's costs and revenues to optimize financial impacts. 2.Identify and Implement Cost Savings Initiatives b) If applicable, implement non-traditional benefits. c) Implement any changes needed to the Wellness Program. d) Conduct assessment of worker's compensation program and evaluate strategies for reducing cost. 3.Maximize Long-Term Financing Plans for District Needs e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 3.Oracle EBS Upgrade and Outsources Payroll & Benefits a) Continue implementation of HRMS, Finance, Treasury, Capital Projects and Purchasing. b) User Acceptance, Training, and Go Live. 7.Implement updated Construction Document Management System (PROLOG) b) Complete training on construction management system. 6 1.Increase Organizational Performance through Improved Communications a) Complete and establish mandatory compliance training for all employees. Training will include employee workplace safety protocols and professional development. 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. 3. Increase Individual Accountability and Job Satisfaction Through Continual Performance Coaching and Training a) Create training courses for the enhanced Performance Management module of the Human Resources Information Management (HRIS) software. Department FY23 Strategic Business Plan Create a learning and business-oriented culture based on competency and accountability. FY23 Q1 Q2 Q3 Q4 159 160 161 162 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T2500 - Human Resources Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 1,608,133 1,525,570 1,797,089 1,526,398 1,825,907 1,880,684 1,937,104 51020 Overtime 7,282 9,163 5,600 6,800 10,000 10,300 10,609 51030 Compensatory Pay Accrual (71,092)(1,986)-15,275 --- 51040 Sick Leave Accrual 788,826 799,410 804,360 808,356 828,480 853,334 878,934 51050 Vacation Accrual 1,259,699 3,289,246 1,187,520 1,187,520 1,223,160 1,259,855 1,297,650 51080 Floating Holiday Accrual 94,782 53,879 -73,579 --- 51100 Emp Service & Incentive Awards 43,997 11,278 70,000 70,000 70,000 71,470 72,971 51120 Membership & Licensing Fees 8,487 3,959 9,760 9,760 10,400 10,618 10,841 51130 Education Assistance Program 111,037 73,700 175,000 175,000 175,000 178,675 182,427 51210 FICA Taxes 117,048 117,179 137,906 112,420 140,447 144,660 149,000 51220 Group Insurance 827,811 837,518 1,032,101 1,036,524 1,215,310 1,311,844 1,416,084 51230 Pension Contributions-Defined Benefit Plan 149,553 100,652 104,561 52,707 54,920 52,241 52,241 51231 Pension Contributions-Defined Contribution Plan 99,618 86,047 73,776 95,625 117,359 117,359 117,359 51233 DC Plan-Matching Contributions -21,355 29,510 23,888 33,531 33,531 33,531 51240 Unemployment Insurance 10,119 13,031 25,000 25,000 25,000 25,750 26,522 51300 Other Post Employment Benefits 1,419,015 1,724,120 1,900,000 1,724,120 1,725,000 1,863,000 2,012,040 51510 Temporary Help -----41,200 42,436 Total Personnel Services $6,474,313 $8,664,121 $7,352,183 $6,942,972 $7,454,514 $7,854,521 $8,239,752 52030 Machinery & Equipment Parts (53)------ 52070 Hardware 8 ------ 52090 Electrical Supplies 41 ------ 52100 Instrument Supplies 23 ------ 52170 Safety Supplies 2,010 6,655 24,000 24,000 24,000 24,504 25,019 52220 Janitorial Supplies 8 ------ 52300 Safety Footwear 2,988 996 2,250 2,250 2,250 2,297 2,345 52310 Telephone/Communic Equip/Suppl 1,252 432 ----- 52320 Office Supplies 6,839 8,547 10,000 10,000 10,000 10,210 10,424 52330 Computer Supplies 2,852 77 ----- 52340 Computer Equipment - Non- Capital 9,157 3,288 ----- 52360 Grounds Supplies (159)------ 52370 Photo & Video Supplies 330 -10,000 10,000 10,000 10,210 10,424 52380 Publications/Training Supplies 1,249 1,214 1,600 1,600 1,600 1,634 1,668 52390 Administrative Supplies 3,021 4,297 9,000 9,000 10,000 10,210 10,424 163 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T2500 - Human Resources Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 Total Supplies $29,564 $25,505 $56,850 $56,850 $57,850 $59,065 $60,305 53270 Telephone Usage 8,775 10,407 8,600 8,600 7,000 7,350 7,718 Total Usage $8,775 $10,407 $8,600 $8,600 $7,000 $7,350 $7,718 54010 Postage 20 -100 100 100 102 104 54050 Office System Services 6,440 4,668 5,000 5,000 5,000 5,105 5,212 54060 Printing Services 254 2,602 6,600 6,600 5,700 5,820 5,942 54080 Advertising Services 12,536 25,219 30,000 30,000 30,000 30,630 31,273 54100 Travel Expenses 7,623 1,817 2,932 3,632 6,448 6,538 6,576 54140 Training Programs/Seminar Fees 40,933 50,285 150,300 70,000 152,590 155,644 158,700 54141 Required Training Programs 168,570 262,680 210,000 210,000 210,000 214,410 218,913 54160 Data Imaging Services 758 596 2,000 2,000 2,000 2,042 2,085 54180 Courier And Freight 148 80 1,680 1,680 1,700 1,736 1,772 54390 Hospital & Medical Services 123,084 119,194 203,000 203,000 303,000 309,363 315,860 54520 Professional Service 351,829 291,341 560,400 1,680,740 833,000 595,243 607,743 54530 Building Repairs & Services 363,467 627,928 1,165,200 1,165,200 70,000 71,470 72,971 54560 Motor Vehicle Services 1,178 1,295 2,700 2,700 2,700 2,781 2,864 54690 Safety Services 8,347 14,826 10,500 15,000 12,000 12,252 12,509 Total Contractual Services $1,085,187 $1,402,531 $2,350,412 $3,395,652 $1,634,238 $1,413,136 $1,442,525 Total General Fund Operating Expense $7,597,839 $10,102,565 $9,768,045 $10,404,074 $9,153,602 $9,334,072 $9,750,299 164 FINANCE Director of Finance Accounting Billings & Collections Engineering Board of Trustees Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Information TechnologyHuman Resources Purchasing Finance Operations 165 Finance Mission Manage the District’s costs and revenues to improve financial performance. Fiscal Year 2021 Accomplishments 1. Received the Government Finance Officers’ Association (GFOA) award for Distinguished Budget Presentation for the 34th consecutive year. Strategy 2, Objective 3 2. Received the GFOA award for Excellence in Financial Reporting for the 33rd consecutive year. Strategy 2, Objective 3 3. Received the GFOA award for Popular Annual Financial Reporting (PAFR). Strategy 2, Objective 3 4. Completed the FY20 Financial Close on time, with no audit findings and no audit adjustments noted by the District’s External Auditors. Strategy 2, Objective 3 5. Continued work to review, identify gaps and correct asset attributes post Oracle go-live compared to GIS and Maximo. Strategy 3, Objective 2 6. FY21 CAP enrollment totaled 4135, a decline of approximately 8% from FY20 due primarily to customers not re-enrolling. Strategy 2, Objective 1 7. Maintained an average of 99% District competitive spend rate. Strategy 2, Objective 2 8. Managed 316 blankets with 5,416 lines. Strategy 2, Objective 2 9. Issued invoices totaling $425 million to approximately 437,000 wastewater customers. Strategy 2, Objective 1 10. Implemented the rate adjustments approved by the MSD Board of Trustees. Strategy 2, Objective 3 166 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs a) Develop draft employee talking point protocol for Stormwater Capital Program. b) Gather employee input for employee talking point protocol for Stormwater Capital Program. c) Develop plan to engage stakeholder groups for specific deliverables for Stormwater Capital Program. 3.Execute Diversity and associated Outreach Programs a) Continue implementation of Disparity Study results and recommendations based on findings, evaluate need for workforce development grants and update diversity programs as necessary. 2 Manage the District's costs and revenues to optimize financial impacts. 1.Increase Collection of Delinquent Revenue a) Begin discussions with Board of Trustees and other parties regarding the implementation of a pilot water shut- off program for commercial customers. 2.Identify and Implement Cost Savings Initiatives a) Continue implementation of integrated payables (i.e., e-payments) and evaluate results. 3.Maximize Long-Term Financing Plans for District Needs a) Implement remaining Board approved rates resulting from the 2019 Wastewater Rate Commission Proposal. b) Update rate model to include results of Inflow and Infiltration (I/I) Allocation Study. c) Update rate model to include results of City Water Attribute Assumption Study. d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 2.Integrate Capital Asset Information Across Systems (Oracle, Maximo and GIS) a) Gaps/discrepancies resolved between GIS (system of record for Collection System linear capital assets) and Oracle (System of record for financial data) for pre-Oracle Go Live capital assets prior to the Oracle upgrade to the Cloud. 3.Oracle EBS Upgrade and Outsources Payroll & Benefits a) Continue implementation of HRMS, Finance, Treasury, Capital Projects and Purchasing. b) User Acceptance, Training, and Go Live. 4.Mobile Technology Strategy 5.CIS System Replacement - NOTE-NO TIMELINE IS GIVEN FOR THIS ONE 6.Implement Integrated Wastewater Operations & Compliance Software Solution (WIMS/PIMS) a) Complete project scope and requirements for a new software solution that meets the regulatory , operational, and financial needs of the District. b) Create RFP for new integrated software solution. 4 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues c) Participate in the Volkswagen Trust grant program stakeholder process, to help MSD affordably replace trucks with more emission friendly equipment. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. b) Administer OMCI Municipal Grant Program with funding from reinstated OMCI taxes to address the needs of the municipalities served by the OMCI's. 4.Enhance Reliability of Information Technology Infrastructure Address customer and regulatory needs through a comprehensive infrastructure management program. FY23 Q1 Q2 Q3 Q4 Promote appropriate standards through proactive regulatory and legislative involvement. Department FY23 Strategic Business Plan 167 District Strategies Objectives Milestones FY23 Q1 Q2 Q3 Q4 Department FY23 Strategic Business Plan c) Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Create a learning and business-oriented culture based on competency and accountability. 168 169 170 171 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T4000 - Finance Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 3,179,239 3,221,722 3,508,773 3,200,022 3,738,423 3,787,773 3,898,417 51020 Overtime 58,456 60,677 51,200 51,000 53,760 55,373 57,034 51030 Compensatory Pay Accrual -289 -8,424 --- 51120 Membership & Licensing Fees 9,416 8,686 9,153 10,448 8,966 9,154 9,346 51210 FICA Taxes 231,999 236,380 272,338 233,867 290,102 294,001 302,592 51220 Group Insurance 453,396 442,482 574,858 479,500 630,150 665,518 715,244 51230 Pension Contributions-Defined Benefit Plan 461,244 400,895 413,229 370,003 386,520 367,665 367,665 51231 Pension Contributions-Defined Contribution Plan 156,888 145,731 113,674 153,928 194,339 188,472 188,472 51233 DC Plan-Matching Contributions -35,328 45,470 34,378 50,192 50,192 50,192 51510 Temporary Help 78,633 111,926 44,845 160,131 30,000 30,900 31,827 Total Personnel Services $4,629,271 $4,664,116 $5,033,539 $4,701,700 $5,382,451 $5,449,049 $5,620,790 52010 Fuels,Lubricants,Gases 654 122 700 700 1,000 1,021 1,042 52090 Electrical Supplies 797 788 500 1,511 2,500 2,552 2,606 52110 Chemical Supplies 513 ------ 52170 Safety Supplies 231 ------ 52220 Janitorial Supplies 28,084 23,053 35,000 35,000 35,000 35,735 36,485 52300 Safety Footwear 1,174 -400 400 1,400 1,021 1,042 52310 Telephone/Communic Equip/Suppl -180 ----- 52320 Office Supplies 20,030 19,143 20,240 18,640 20,890 21,329 21,777 52330 Computer Supplies 146 190 500 564 500 510 521 52340 Computer Equipment - Non- Capital 2,572 232 ----- 52380 Publications/Training Supplies 4,413 2,815 5,000 5,000 4,850 4,952 5,056 52390 Administrative Supplies 6,575 2,209 4,600 4,100 5,600 5,718 5,838 Total Supplies $65,188 $48,732 $66,940 $65,915 $71,740 $72,838 $74,368 53060 Electric Usage 168,923 164,118 193,600 195,190 175,000 179,025 183,143 53080 Water Usage 5,595 3,267 6,000 6,000 6,000 6,420 6,869 53270 Telephone Usage 1,807 1,308 1,500 1,500 1,000 1,050 1,103 Total Usage $176,326 $168,693 $201,100 $202,690 $182,000 $186,495 $191,114 54010 Postage 1,982,935 1,974,571 2,075,100 2,085,940 2,223,200 2,269,887 2,317,555 54050 Office System Services ----17,500 -- 54060 Printing Services 517,967 417,271 673,866 443,730 490,000 502,026 512,568 172 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T4000 - Finance Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 54080 Advertising Services 121,819 83,271 123,000 113,000 103,000 105,163 107,371 54100 Travel Expenses 6,195 373 19,928 18,558 30,411 31,050 31,702 54140 Training Programs/Seminar Fees 6,077 6,013 19,165 17,565 20,645 21,079 21,521 54160 Data Imaging Services 19,253 -- ---- 54180 Courier And Freight 441 450 1,150 2,510 3,970 4,053 4,138 54190 Property & Other Space Rental 30,000 -30,000 30,000 30,000 30,630 31,273 54350 Bill Payment Services 1,951,825 2,399,398 2,342,190 2,680,000 2,721,116 2,778,259 2,836,603 54420 Court Costs & Lien Fees 149,148 (48,508)250,000 250,000 250,000 255,250 260,610 54450 Collection Services 5,681,200 6,648,418 6,900,000 6,850,000 7,602,000 7,761,642 7,924,636 54470 Water Agency Data Services 514,888 517,856 610,000 520,000 550,000 561,550 573,343 54520 Professional Service 5,161,004 5,364,722 5,325,000 4,994,000 5,341,000 5,453,146 5,567,641 54530 Building Repairs & Services 97,819 85,985 107,000 107,000 90,000 91,890 93,820 54540 Janitorial Services 152,672 218,466 230,000 230,000 170,000 173,570 177,215 54550 Grounds Services 25,132 35,303 15,000 15,000 25,000 25,525 26,061 54560 Motor Vehicle Services 352 139 ----- 54570 Machinery & Equipment Services 5,392 6,000 3,000 3,000 3,500 3,580 3,663 54600 Electrical Repair Services 1,081 2,354 5,000 5,000 6,000 6,300 6,615 54620 Plumbing Services 4,283 5,417 13,000 13,000 13,000 13,273 13,552 54630 HVAC Services 15,720 26,790 40,000 40,000 40,000 40,840 41,698 54650 Waste Hauling 4,251 3,973 4,000 4,000 4,148 4,235 4,324 54670 Other Governmental Fees 50 ------ 54690 Safety Services 2,274 2,213 6,000 6,000 6,000 6,126 6,255 Total Contractual Services $16,451,778 $17,750,473 $18,792,399 $18,428,303 $19,740,490 $20,139,075 $20,562,164 55030 Structural Improvements 5,000 534,750 --140,000 142,940 145,942 55090 Furniture & Office Equipment --400 400 --- Total Capital Outlay $5,000 $534,750 $400 $400 $140,000 $142,940 $145,942 Total General Fund Operating Expense $21,327,563 $23,166,764 $24,094,378 $23,399,008 $25,516,681 $25,990,397 $26,594,378 173 FY23 BUDGET 174 INFORMATION TECHNOLOGY ES Retooling Infrastructure Operations Board of Trustees Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Human Resources Operations Finance Information Technology Director of Information Technology Business Technology Engineering 175 Information Technology Mission Provide a reliable and secure technology foundation to support responsible wastewater and stormwater management. Fiscal Year 2021 Accomplishments 1. The IT Department continued to work on Disaster Recovery which is a Strategic Business Objective for the District. (Strategy 5, Objective 4) 2. The IT Department put great effort into mapping out the AS-IS and Improved TO-BE processes for implementing an Enterprise-wide Oracle upgrade to the Cloud environment. Staff met with HR, Finance and Engineering to map and document existing processes and work to streamline, and/or remove pain points from the processes. RFPs for the Oracle upgrade have been completed and will be bid in FY22. (Strategy 3, Objective 4) 3. The IT Department worked on security awareness through policies, KnowB4, awareness, and multiple other factors. 4. IT staff has been implementing exciting new automated software solutions referred to as Robotic Process Automation (RPA) which allows the automation of User Interface actions with software. The software can be taught mundane processes such as opening websites and cutting and pasting information between systems. IT has successfully implemented a process to move tax information from a County-provided PDF document to our billing system, QA/QC completed Operations work orders and release tax liens. 5. LIMS has been completed. 6. IT implemented Single Sign-On for Oracle, Maximo, and Hyperion. 176 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs f) Implement communications platform (MSDPC Connect) to keep stakeholders informed of District related Capital Project activities. 3.Execute Diversity and associated Outreach Programs 2 Manage the District's costs and revenues to optimize financial impacts. 2.Identify and Implement Cost Savings Initiatives 3.Maximize Long-Term Financing Plans for District Needs e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 2.Integrate Capital Asset Information Across Systems (Oracle, Maximo and GIS) a) Gaps/discrepancies resolved between GIS (system of record for Collection System linear capital assets) and Oracle (System of record for financial data) for pre-Oracle Go Live capital assets prior to the Oracle upgrade to the Cloud. 6.Implement Integrated Wastewater Operations & Compliance Software Solution (WIMS/PIMS) a) Complete project scope and requirements for a new software solution that meets the regulatory , operational, and financial needs of the District. b) Create RFP for new integrated software solution. c) Select and award the contract based on RFP responses. 5 1. Implement Stormwater Operating and Capital Improvement Program 2.Implement Wastewater Operating and Capital Improvement Program a) Continue procurement implementation and provide training for modeling software upgrades to take advantage of new technology that will increase engineering efficiencies in flow metering, modeling, and capacity assurance analysis. 3.Implement Asset Management Program a) Purchase and implement software tools necessary to support asset management plan that incorporates the monetized ratings process for the District's linear assets. 4.Enhance Reliability of Information Technology Infrastructure c) Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). 5. Implement technologies and data driven solutions to reduce capital costs and increase utility performance a) Develop Wet Weather Optimization Plan for Lemay Service Area. b) Design and execute SCADA system upgrade. c) Plan Wet Weather Operational Structure for Organization. 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Department FY23 Strategic Business Plan Address customer and regulatory needs through a comprehensive infrastructure management program. Create a learning and business-oriented culture based on competency and accountability. FY23 Q1 Q2 Q3 Q4 177 178 179 180 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T4500 - Information Technology Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 3,578,500 3,871,362 4,876,420 4,037,591 4,934,011 5,082,031 5,234,492 51020 Overtime 9,609 5,365 12,000 22,000 8,600 8,858 9,129 51030 Compensatory Pay Accrual 14,294 (2,676)-4,583 --- 51120 Membership & Licensing Fees 7,742 7,209 9,621 10,121 12,197 12,453 12,715 51210 FICA Taxes 269,330 295,945 373,966 297,936 378,110 389,295 400,974 51220 Group Insurance 313,350 343,260 522,652 429,206 572,866 616,986 664,597 51230 Pension Contributions-Defined Benefit Plan 798,704 707,448 686,673 661,528 690,335 656,660 656,660 51231 Pension Contributions-Defined Contribution Plan 103,716 131,119 154,659 153,828 213,130 213,130 213,130 51233 DC Plan-Matching Contributions -27,536 55,624 30,942 60,894 60,894 60,894 51510 Temporary Help 4,697,354 4,663,864 2,319,080 2,777,000 2,388,640 2,460,299 2,534,108 Total Personnel Services $9,792,599 $10,050,431 $9,010,694 $8,424,734 $9,258,783 $9,500,607 $9,786,699 52030 Machinery & Equipment Parts 1,231 ------ 52090 Electrical Supplies 257 -2,000 2,000 --- 52220 Janitorial Supplies -129 ----- 52300 Safety Footwear 170 769 ----- 52310 Telephone/Communic Equip/Suppl 5,127 5,363 6,909 6,909 7,500 7,657 7,818 52320 Office Supplies 1,994 6,590 2,000 2,000 2,400 2,450 2,502 52330 Computer Supplies 352,751 520,716 107,300 107,300 125,461 128,096 130,786 52340 Computer Equipment - Non- Capital 500,545 336,124 344,000 444,000 350,000 357,350 364,854 52380 Publications/Training Supplies 66,000 42,265 43,256 42,756 44,820 45,761 46,722 52390 Administrative Supplies 1,663 1,545 4,500 4,500 4,500 4,594 4,691 52400 Furniture & Office Equipment - Non-Capital (33,639)180 ----- Total Supplies $896,099 $913,681 $509,965 $609,465 $534,681 $545,909 $557,373 53270 Telephone Usage 552,130 365,066 417,472 417,472 434,214 455,925 478,721 Total Usage $552,130 $365,066 $417,472 $417,472 $434,214 $455,925 $478,721 54010 Postage 267 97 ----- 54050 Office System Services 3,590,929 3,728,027 4,347,897 4,336,138 4,512,751 4,607,519 4,704,277 54080 Advertising Services (34)------ 54100 Travel Expenses 38,993 (974)40,110 43,110 31,400 31,039 31,691 54140 Training Programs/Seminar Fees 97,800 69,944 80,144 80,110 57,830 37,624 38,414 54180 Courier And Freight 210 1,141 -500 --- 181 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T4500 - Information Technology Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 54520 Professional Service 1,472,687 1,498,988 1,974,536 1,854,536 1,826,004 1,864,350 1,903,501 54530 Building Repairs & Services 302,411 89,553 20,000 40,000 20,000 20,420 20,849 Total Contractual Services $5,503,264 $5,386,777 $6,462,687 $6,354,394 $6,447,985 $6,560,951 $6,698,731 55090 Furniture & Office Equipment -75,304 10,000 10,000 10,000 10,210 10,424 55110 Computer Equipment 589,099 487,462 404,000 304,000 500,000 510,500 521,220 Total Capital Outlay $589,099 $562,767 $414,000 $314,000 $510,000 $520,710 $531,645 Total General Fund Operating Expense $17,333,191 $17,278,721 $16,814,818 $16,120,066 $17,185,663 $17,584,103 $18,053,169 182 General Counsel General Counsel Administration District Administration Engineering Board of Trustees Executive Director Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Information Technology Litigation & Claims Operations General Counsel Human Resources Finance 183 General Counsel Mission The General Counsel’s office is responsible for all legal matters concerning the District. The Department provides legal services and guidance as requested or required by the Board of Trustees, Executive Director and District staff. Fiscal Year 2021 Accomplishments 1. Managed legal challenges associated with the implementation of the District's Consent Decree. (Strategy 5, Objective 2) 2. Successfully defended the District before the Civil Service Commission; Equal Employment Opportunity Commission; Civil Court and Federal Court in a wide variety of litigation matters. (Strategy 6, Objective 3) 3. Provided legal counseling to the District on various matters, including but not limited to, liability claims involving personal injury, wrongful death, breach of contract, nuisance, property damage and/or inverse condemnation; human resource claims arising under federal, state or local civil rights and employment laws or MSD’s Civil Service rules; real estate claims involving property rights including acquisition by eminent domain; environmental matters involving both state and federal laws; administrative claims associated with corporate governance matters such as Missouri Sunshine Law, MSD Charter Plan and MSD Ordinances/Resolutions; review of contracts; customer service level issues; regulatory compliance programs; and procurement issues. (Strategy 5, Objective 2) 4. Participated in stakeholders’ groups to develop sound technical basis for regulatory issues. (Strategy 4, Objectives 1 & 2) 184 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs d) Lead education and outreach activities among key stakeholders and community partners to advance public understanding and awareness of MSD's roles and initiatives in improving the environmental quality within MSD's service area. f) Implement communications platform (MSDPC Connect) to keep stakeholders informed of District related Capital Project activities. 3.Execute Diversity and associated Outreach Programs 2 Manage the District's costs and revenues to optimize financial impacts. 2.Identify and Implement Cost Savings Initiatives 3.Maximize Long-Term Financing Plans for District Needs d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 6.Implement Integrated Wastewater Operations & Compliance Software Solution (WIMS/PIMS) a) Complete project scope and requirements for a new software solution that meets the regulatory , operational, and financial needs of the District. b) Create RFP for new integrated software solution. 4 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues a) Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for an equitable fee structure. b) Participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. 2.Promote Appropriate Regulatory and Legislative Initiatives that Impact All Areas of District Operations a) Advocate for reasonable and affordable numeric nutrient wastewater effluent limits. b) Renew the regional General Permit 44 issued by the U.S. Army Corps of Engineers to streamline stormwater and sanitary sewer infrastructure maintenance and repair. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. 2.Implement Wastewater Operating and Capital Improvement Program b) Conduct quarterly meetings with Engineering and General Counsel staffs to monitor and adjust projects in order to ensure compliance with the Consent Decree performance measure for the elimination of 85% Constructed Sanitary Overflows by the end of calendar 2023. c) Complete development and implement Wastewater CIRP to comply with Consent Decree and Asset management needs based on approved District Rate Proposal. 3.Implement Asset Management Program 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Department FY23 Strategic Business Plan Address customer and regulatory needs through a comprehensive infrastructure management program. Create a learning and business-oriented culture based on competency and accountability. FY23 Q1 Q2 Q3 Q4 Promote appropriate standards through proactive regulatory and legislative involvement. 185 186 187 188 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T5500 - General Counsel Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 876,557 901,655 908,008 919,875 944,050 972,371 1,001,543 51020 Overtime -50 ----- 51120 Membership & Licensing Fees 6,185 6,245 6,730 6,730 6,865 7,009 7,156 51210 FICA Taxes 60,601 62,420 69,463 61,310 72,220 74,386 76,618 51220 Group Insurance 77,304 75,423 90,944 88,453 99,541 107,207 115,479 51230 Pension Contributions-Defined Benefit Plan 174,250 187,035 175,658 189,313 197,654 188,012 188,012 51231 Pension Contributions-Defined Contribution Plan 31,455 26,894 19,588 27,748 28,459 28,459 28,459 51233 DC Plan-Matching Contributions -6,330 7,835 6,342 8,131 8,131 8,131 Total Personnel Services $1,226,352 $1,266,052 $1,278,225 $1,299,771 $1,356,919 $1,385,575 $1,425,397 52090 Electrical Supplies 37 ------ 52300 Safety Footwear -250 ----- 52310 Telephone/Communic Equip/Suppl 328 ------ 52320 Office Supplies 3,601 4,951 5,150 5,150 5,300 5,411 5,525 52330 Computer Supplies 341 131 -250 --- 52340 Computer Equipment - Non- Capital 170 ------ 52370 Photo & Video Supplies --100 100 100 102 104 52380 Publications/Training Supplies 68,836 65,354 82,000 82,000 85,000 86,785 88,607 52390 Administrative Supplies 1,103 1,032 1,500 1,250 1,500 1,531 1,564 Total Supplies $74,416 $71,718 $88,750 $88,750 $91,900 $93,830 $95,800 53270 Telephone Usage 480 480 600 600 750 788 827 Total Usage $480 $480 $600 $600 $750 $788 $827 54060 Printing Services 4 -250 250 200 204 208 54100 Travel Expenses 4,392 428 4,237 4,237 5,610 5,728 5,848 54140 Training Programs/Seminar Fees 5,917 611 6,980 6,980 6,350 6,483 6,620 54180 Courier And Freight 426 257 750 750 750 766 782 54400 Judgments & Claims Settlements -1,764 25,000 25,000 25,000 25,525 26,061 54420 Court Costs & Lien Fees 5,336 7,260 7,500 7,500 8,000 8,168 8,340 54520 Professional Service 2,976,355 446,389 2,000,000 2,000,000 2,000,000 2,042,000 2,084,882 Total Contractual Services $2,992,430 $456,707 $2,044,717 $2,044,717 $2,045,910 $2,088,874 $2,132,740 189 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T5500 - General Counsel Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 Total General Fund Operating Expense $4,293,678 $1,794,957 $3,412,292 $3,433,838 $3,495,479 $3,569,067 $3,654,765 190 OPERATIONS Director of Operations Maintenance Yards Pump Stations Operations Administration Finance Operations Engineering Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Information TechnologyHuman Resources Treatment Plants Board of Trustees 191 Operations Department Mission To protect the public’s health, safety, and water environment by effectively operating and maintaining the District’s wastewater and stormwater infrastructure. Fiscal Year 2021 Accomplishments 1. NACWA Platinum Awards for Grand Glaize, Fenton, Meramec and Missouri River Treatment Plants. (Strategy 5, Objective 3) 2. NACWA Gold Award for Coldwater and Lemay Treatment Plants. (Strategy 5, Objective 3) 3. NACWA Silver Award for Bissell Treatment Plant. (Strategy 5, Objective 3) 4. Treated 109,996 thousand million gallons of wastewater. Averaged 293 Million Gallons/Day. (Strategy 5, Objective 3) 5. Reevaluated and defined hazard boundaries of Collections System Assets. (Strategy 5, Objective 3) 6. Asset Management implementation continued with updates of the Asset Guide Book. It defines the asset classes and standard maintenance performance. It also standardizes the difference between spare parts and actual assets. (Strategy 5, Objective 3) 7. Asset Management has implemented vehicle health monitoring using Gasboy fuel tracking and Roadside Systems. (Strategy 5, Objective 3) 192 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs d) Lead education and outreach activities among key stakeholders and community partners to advance public understanding and awareness of MSD's roles and initiatives in improving the environmental quality within MSD's service area. f) Implement communications platform (MSDPC Connect) to keep stakeholders informed of District related Capital Project activities. 3.Execute Diversity and associated Outreach Programs b) Continue collaboration and outreach with youth programs focused on early development of construction industry workers. c) Collaborate with area programs focused on increasing opportunities for hiring low income, unemployed and underemployed individuals for District projects. d) Identify opportunities which incentivizes women and minorities to enter and participate in the sewer construction industry. e) Leverage 10-year anniversary of Community Benefits Agreement to increase awareness of MSD programs and positive impacts in the community. 2 Manage the District's costs and revenues to optimize financial impacts. 2.Identify and Implement Cost Savings Initiatives d) Conduct assessment of worker's compensation program and evaluate strategies for reducing cost. 3.Maximize Long-Term Financing Plans for District Needs d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 2.Integrate Capital Asset Information Across Systems (Oracle, Maximo and GIS) a) Gaps/discrepancies resolved between GIS (system of record for Collection System linear capital assets) and Oracle (System of record for financial data) for pre-Oracle Go Live capital assets prior to the Oracle upgrade to the Cloud. 6.Implement Integrated Wastewater Operations & Compliance Software Solution (WIMS/PIMS) a) Complete project scope and requirements for a new software solution that meets the regulatory , operational, and financial needs of the District. b) Create RFP for new integrated software solution. c) Select and award the contract based on RFP responses. 4 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues a) Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for an equitable fee structure. b) Participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. c) Participate in the Volkswagen Trust grant program stakeholder process, to help MSD affordably replace trucks with more emission friendly equipment. 2.Promote Appropriate Regulatory and Legislative Initiatives that Impact All Areas of District Operations a) Advocate for reasonable and affordable numeric nutrient wastewater effluent limits. b) Renew the regional General Permit 44 issued by the U.S. Army Corps of Engineers to streamline stormwater and sanitary sewer infrastructure maintenance and repair. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. 2.Implement Wastewater Operating and Capital Improvement Program Department FY23 Strategic Business Plan Address customer and regulatory needs through a comprehensive infrastructure management program. FY23 Q1 Q2 Q3 Q4 Promote appropriate standards through proactive regulatory and legislative involvement. 193 District Strategies Objectives Milestones Department FY23 Strategic Business Plan FY23 Q1 Q2 Q3 Q4 a) Continue procurement implementation and provide training for modeling software upgrades to take advantage of new technology that will increase engineering efficiencies in flow metering, modeling, and capacity assurance analysis. b) Conduct quarterly meetings with Engineering and General Counsel staffs to monitor and adjust projects in order to ensure compliance with the Consent Decree performance measure for the elimination of 85% Constructed Sanitary Overflows by the end of calendar 2023. c) Complete development and implement Wastewater CIRP to comply with Consent Decree and Asset management needs based on approved District Rate Proposal. 3.Implement Asset Management Program a) Purchase and implement software tools necessary to support asset management plan that incorporates the monetized ratings process for the District's linear assets. 4.Enhance Reliability of Information Technology Infrastructure c) Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). 5. Implement technologies and data driven solutions to reduce capital costs and increase utility performance a) Develop Wet Weather Optimization Plan for Lemay Service Area. b) Design and execute SCADA system upgrade. c) Plan Wet Weather Operational Structure for Organization. d) Finalize CIRP based on Wet Weather Optimization Plan for Lemay Service Area. 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. 4.Implement safety and security training to support a safe work environment a) Assess security monitoring and access issues in the field and at all facilities. b) Identify gaps in security, safety and incident response and reporting. Create a learning and business-oriented culture based on competency and accountability. 194 195 196 197 198 199 200 201 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T6000 - Operations Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 40,056,730 41,700,604 44,127,321 41,408,754 45,655,354 47,025,015 48,435,765 51020 Overtime 2,424,493 1,466,468 2,401,806 2,372,278 2,407,883 2,480,119 2,554,523 51030 Compensatory Pay Accrual 56 1,774 -6,387 --- 51060 Worker's Compensation Pay 65,067 82,657 -113,990 --- 51100 Emp Service & Incentive Awards 957 ------ 51120 Membership & Licensing Fees 10,402 78,864 87,298 87,298 88,901 90,768 92,674 51210 FICA Taxes 3,091,552 3,168,694 3,559,478 3,184,661 3,676,838 3,787,143 3,900,757 51220 Group Insurance 5,075,551 4,899,443 6,186,207 5,444,696 6,555,971 7,062,774 7,609,733 51230 Pension Contributions-Defined Benefit Plan 7,679,340 7,600,362 7,003,095 7,067,791 7,213,686 6,861,799 6,861,799 51231 Pension Contributions-Defined Contribution Plan 1,502,057 1,393,043 1,064,238 1,553,234 1,777,071 1,777,071 1,777,071 51233 DC Plan-Matching Contributions -358,144 437,954 376,195 507,734 507,734 507,734 Total Personnel Services $59,906,208 $60,750,054 $64,867,397 $61,615,285 $67,883,438 $69,592,422 $71,740,056 52010 Fuels,Lubricants,Gases 1,103,998 1,004,131 1,266,643 1,419,991 1,411,593 1,441,236 1,471,502 52020 Motor Vehicle Parts & Equip 404,389 382,539 487,305 487,561 474,225 484,184 494,352 52030 Machinery & Equipment Parts 3,100,558 4,516,390 4,650,484 4,787,314 4,608,780 4,705,564 4,804,381 52040 Machinery & Equipment - Non- Capital 39,267 94,238 59,000 259,306 88,186 90,038 91,929 52050 Construction & Bldg Supplies 1,968,489 2,263,959 2,823,965 2,670,868 2,728,250 2,785,543 2,844,040 52070 Hardware 111,597 132,028 139,727 144,584 145,679 148,738 151,862 52080 Hose Supplies 165,479 190,629 191,584 201,594 194,534 198,619 202,790 52090 Electrical Supplies 959,804 1,267,628 1,404,955 1,184,337 1,323,810 1,351,610 1,379,994 52100 Instrument Supplies 616,392 789,953 755,529 788,135 787,489 804,026 820,911 52110 Chemical Supplies 3,089,661 2,843,372 3,625,126 3,605,683 3,876,350 4,161,953 4,249,354 52120 Laboratory Supplies 9,943 6,455 11,972 12,972 12,570 12,834 13,103 52150 Plumbing Supplies 385,625 446,404 434,204 464,392 456,054 465,631 475,409 52160 Paint Supplies 39,535 41,395 54,763 63,131 62,275 63,583 64,918 52170 Safety Supplies 412,793 483,969 566,526 490,481 459,688 469,341 479,198 52220 Janitorial Supplies 109,667 93,472 126,705 126,575 115,487 117,912 120,388 52240 Hand Tools 417,107 440,465 385,046 455,442 389,615 397,797 406,151 52280 Uniforms 272,268 269,209 309,383 312,369 329,264 336,179 343,238 52300 Safety Footwear 108,523 141,529 152,750 152,750 153,000 156,213 159,493 52310 Telephone/Communic Equip/Suppl 16,882 16,112 65,368 65,627 7,160 7,310 7,464 52320 Office Supplies 31,574 23,184 39,094 44,122 34,830 35,561 36,308 52330 Computer Supplies 77,880 35,060 94,100 100,347 99,972 102,071 104,215 202 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T6000 - Operations Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 52340 Computer Equipment - Non- Capital 45,199 8,713 17,118 23,398 14,881 15,194 15,513 52360 Grounds Supplies 17,782 19,446 27,495 27,645 27,320 27,894 28,479 52370 Photo & Video Supplies 6,960 3,805 7,250 7,140 6,700 6,841 6,984 52380 Publications/Training Supplies 2,143 1,761 8,180 8,180 8,555 8,735 8,918 52390 Administrative Supplies 5,954 9,690 17,760 18,260 17,300 17,663 18,034 52400 Furniture & Office Equipment - Non-Capital 28,593 74,929 23,875 75,511 24,875 25,397 25,931 52990 Inventory (I/D)302,366 (341,096)-(201,943)--- 52991 Inventory Obsolence (9,448)(4,239)-(4,732)--- Total Supplies $13,840,982 $15,255,130 $17,745,907 $17,791,039 $17,858,442 $18,437,669 $18,824,860 53060 Electric Usage 12,069,378 11,357,856 12,762,000 12,618,083 13,645,400 13,959,244 14,280,307 53070 Natural Gas Usage 1,879,662 1,813,980 2,275,280 2,275,281 2,456,790 2,530,494 2,606,408 53080 Water Usage 723,363 879,500 919,785 949,209 942,557 1,008,536 1,079,134 53270 Telephone Usage 285,135 302,145 288,101 317,244 292,981 307,630 323,012 Total Usage $14,957,538 $14,353,480 $16,245,166 $16,159,818 $17,337,728 $17,805,904 $18,288,860 54010 Postage --130 130 30 31 31 54050 Office System Services 25,894 16,859 17,083 12,218 20,978 21,419 21,868 54060 Printing Services 6,022 6,207 5,760 5,762 5,637 5,755 5,876 54100 Travel Expenses 63,510 30,134 87,631 86,131 101,213 103,329 105,488 54140 Training Programs/Seminar Fees 142,936 116,526 184,780 195,601 134,436 137,260 140,140 54141 Required Training Programs 4,431 14,443 30,509 34,465 18,475 18,863 19,259 54180 Courier And Freight 63,600 69,419 103,279 109,309 86,767 88,589 90,449 54190 Property & Other Space Rental 16,076 33,454 17,120 17,120 17,720 18,092 18,472 54520 Professional Service 781,453 933,260 944,500 945,300 769,750 785,915 802,419 54530 Building Repairs & Services 753,736 946,890 1,519,490 1,808,726 1,320,415 1,348,144 1,376,455 54540 Janitorial Services 1,043,350 1,430,310 1,344,594 1,290,719 995,800 1,016,712 1,038,063 54550 Grounds Services 686,201 674,457 823,167 866,062 930,529 950,070 970,022 54560 Motor Vehicle Services 257,807 290,142 329,700 365,538 337,300 347,419 357,842 54570 Machinery & Equipment Services 1,606,892 3,875,225 3,380,530 3,118,726 3,333,935 3,410,616 3,489,060 54580 Equipment Rental 629,684 604,767 480,923 424,079 481,848 496,303 511,193 54590 Sewer Rep & Structure Cleaning 1,899,255 1,605,122 1,611,500 1,644,933 1,570,650 1,680,596 1,798,237 54600 Electrical Repair Services 765,757 1,061,897 1,171,750 1,314,902 1,417,250 1,488,113 1,562,518 54610 Instrument Repair Services 263,124 297,022 323,929 710,656 352,936 360,348 367,915 54620 Plumbing Services 915,028 1,020,975 761,854 777,395 767,316 783,429 799,881 203 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T6000 - Operations Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 54630 HVAC Services 378,486 468,000 510,004 738,702 399,562 407,953 416,520 54640 Damage Repairs & Services 1,066 3,566 11,000 11,000 11,000 11,231 11,467 54650 Waste Hauling 1,650,327 1,486,969 1,600,566 1,595,316 1,648,794 1,683,419 1,718,770 54660 Ash Hauling 338,375 541,696 1,036,654 1,036,654 365,222 985,492 1,618,787 54670 Other Governmental Fees 896,427 1,123,422 1,186,834 1,187,054 1,157,866 1,182,181 1,207,007 54680 Laboratory Testing Services 374,420 299,247 377,820 377,570 560,490 572,260 584,278 54690 Safety Services 72,618 53,665 96,237 96,322 96,050 98,067 100,126 54700 Asbestos Removal Services 103,761 57,306 32,500 32,500 30,000 30,630 31,273 54720 Tree Removal/Weed Spraying 364,501 406,253 455,500 455,500 456,500 466,087 475,874 Total Contractual Services $14,104,735 $17,467,233 $18,445,343 $19,258,390 $17,388,468 $18,498,320 $19,639,291 55030 Structural Improvements 202,289 355,099 125,000 222,787 100,000 102,100 104,244 55040 Processing Equipment 3,305,464 2,247,882 727,000 781,834 617,000 629,957 643,186 55050 Auxiliary Equipment 366,018 1,382 188,000 195,271 8,500 8,678 8,861 55060 Motor Vehicles 2,957,527 3,053,681 3,100,000 2,950,000 2,955,000 3,017,055 3,080,413 55070 Machinery & Implements 491,848 667,745 512,000 203,000 472,000 481,912 492,032 55080 Instruments & Apparatus 495,176 28,867 101,200 116,610 26,200 26,750 27,312 55090 Furniture & Office Equipment -23,903 20,000 20,000 20,000 20,420 20,849 55110 Computer Equipment -55,000 465,000 55,000 490,000 500,290 510,796 Total Capital Outlay $7,818,323 $6,433,559 $5,238,200 $4,544,502 $4,688,700 $4,787,163 $4,887,693 Total General Fund Operating Expense $110,627,785 $114,259,457 $122,542,013 $119,369,034 $125,156,776 $129,121,478 $133,380,761 204 ENGINEERING Director of Engineering Planning Environmental Compliance Design Finance Board of Trustees Executive Director General Counsel Rate Commission Secretary-Treasurer Internal Auditor Civil Service Commission Information Technology Human Resources Construction Management Operations Engineering 205 Engineering Mission To responsibly deliver and regulate stormwater and wastewater facilities to protect the water environment. Fiscal Year 2021 Accomplishments 1. MSD implemented the stakeholder process for the MS4 application and Stormwater Management Plan. The application and Plan were completed after extensive public input opportunities in FY21 and was also submitted to DNR in FY21. DNR approved the plan in FY22. This milestone is complete. No VW grant funding opportunities were available in FY21. There is an opportunity in FY22. (Strategy 4, Objective 1) 2. The EPA approved the 208 Plan modification on 10/19/21. The Planning Division has removed from the capital program, the projects associated with the former 208 Plan. (Strategy N/A, Objective N/A) 3. Developed and submitted TMDL implementation plans for Gravois Creek and Maline Creek. The plan approach is consistent with other watershed plans that DNR already approved. Awaiting DNR approval. (Strategy 4, Objective 2) 4. Continued to implement projects related to Project Clear to reduce the constructed SSOs and improve the capacity of the sanitary and combined sewer systems. The Capital Construction Division kicked off a total of 93 new construction projects accounting for approximately $315 million in construction spending. During Fiscal Year 2021 approximately 54 miles of pipe ranging in size from 6-inch to 72-inch were rehabilitated using Cured-In-Place Pipe or other rehabilitation methods. In addition to rehabilitated pipe the Construction Division managed the construction of over 65,000 feet of new sanitary sewer ranging in size from 6-inch to 72-inch. Also projects were completed which made improvements at the Lemay 1 Pump Station, Lemay WWTF, Bissell WWTF, Grand Glaize WWTF and other existing pumps stations and treatment facilities and major new facility projects were completed such as the Gravois Wet Weather Storage Facility and Maline Creek CSO Local Storage Facility. In addition to the Capital Construction Division the Development Inspection Division of Construction Management completed over 270 BMP approvals and assisted in the inspection of 1,500 post construction BMP inspections. This group also inspected over 53 miles of private development sewer that will be dedicated to MSD upon final construction approval. (Strategy 5, Objective 2) 5. Continued ongoing State Revolving Fund low interest loan program administration. Submitted applications in FY21 to MDNR for $40.2 Million in loan funding and a $1 Million Grant for the MSD Public I/I Reduction Program Phase VI, and $182.5 Million for two phased SRF loans for the Lower Meramec Tunnel project. The $1 Million grant reimbursement was received from MDNR in FY21. Added 7 CIPP construction projects to the MSD Public I/I Reduction Program in FY21. Obtained $2.872 Million in supplemental Corps of Engineers funding, to enable the Corps to begin construction of the Harlem Baden Relief Phase IV (Hebert) – Goodfellow to Hamilton project. Continued ongoing program administration of a $2.783 Million stormwater grant from MDNR to provide 50% reimbursement of construction costs on 11 stormwater 206 projects, obtaining approval from MDNR to add a project constructed by the City of St. Louis to the program. Obtained MDNR plan/spec approval for all projects, which have all proceeded to bidding. (Strategy 2, Objective 3) 6. Transitioning the CIRP out of watershed consultants to meet the design needs. Continued to implement the design related to Project Clear and the Stormwater Program, with a total design appropriate of $34 million. Designed and contracted for 414 infrastructure repair projects totaling $5.6 million. Successfully acquired 223 easements and closed upon 1 resident relocations, to allow for capital construction project. Processed and administered consultant selection RFQs/RFPs for 17 engineering contracts/projects, 15 for wastewater and 2 for stormwater. As well, 2 general services providers were selected for various tasks. Completed the 2021-2022 Capital Improvement and Replacement (CIRP) budgeting process and published the Budget Supplement document. The program consists of 144 projects totaling $353 million in design and construction, planned for FY22. (Strategy 5, Objective 2) 7. Initiated the Inflow and Infiltration Allocation Study, selected a firm to perform the study and began data collection. Evaluated performance of inflow and infiltration projects using post construction flow monitoring and hydraulic modeling. This evaluation is needed for confirmation of the scope of future sanitary relief projects needed to eliminate constructed Sanitary Sewer Overflow Outfalls and provide capacity assurance. In FY21, this review was able to eliminate 2 projects, with $2 million eliminated in capital costs. Additionally, 3 constructed SSO outfalls were removed based on post construction flow monitoring and without the need for a future sanitary relief project. (Strategy 5, Objective 2) 8. Implemented the $8 million Stormwater CIRP from OMCI taxes for six OMCI subdistricts. Coordinated with all municipalities regarding the 50/50 split of funds in five of the six OMCIs. Initiated the municipal stormwater grant program for OMCI funding of municipal stormwater work, which allows for approximately $4 million in OMCI funds to be spent by municipalities within the OMCIs. (Strategy 5, Objective 1) 9. Began the Wet Weather Optimization Project (WWOP) (13436) and SCADA Upgrades Project (13467). WWOP recommended modeling and optimization software, as well as the selection of a pilot location to test control strategies that would reduce CSO volume. The project team updated the Lemay Service Area model in FY21, identifying data sources to incorporate into the pilot/program dashboard, and determining alternatives for different optimization scenarios. The SCADA Upgrades Project kicked off in March 2021, and has focused on data gathering, existing network evaluation, and workshops to identify business needs for the District. The SCADA Upgrades Project team is in close coordination with the WWOP team in order to identify the equipment required for communication between remote monitoring and control point locations. The Baden “pilot” optimization project at the North Pointe Detention Basin was designed, and construction plans and specifications were completed. The project was bid in early summer of 2021. (Strategy 5, Objective 5) 10. Participated in assessing core business processes and the functionality of Oracle EBS 12.2 regarding capital projects and related functions. Investigated, coordinated, and set up security and retention requirements for Laserfiche to address movement of Digital library, Project Archive, and consultant selection records from network drives. Worked directly with consultant in addition to IG and IT. (Strategy 3, Objective 4)    207 District Strategies Objectives Milestones 1 Educate and partner with stakeholders to build support 1.Execute Community Outreach Programs and Engagement Programs a) Develop draft employee talking point protocol for Stormwater Capital Program. b) Gather employee input for employee talking point protocol for Stormwater Capital Program. c) Develop plan to engage stakeholder groups for specific deliverables for Stormwater Capital Program. d) Lead education and outreach activities among key stakeholders and community partners to advance public understanding and awareness of MSD's roles and initiatives in improving the environmental quality within MSD's service area. e) Develop a robust communications plan around the overall Green Infrastructure (Rainscaping) Program. f) Implement communications platform (MSDPC Connect) to keep stakeholders informed of District related Capital Project activities. 2.Execute outreach programs for elected representatives and other municipal officials. a) Inform and engage officials on results of public's desire for a District-wide stormwater capital program. b) Gather information from Municipal Stakeholders on how to administer a stormwater capital program. c) Engage elected officials to help build their understanding and awareness of MSD's roles and initiatives in improving the environmental quality within their communities. 3.Execute Diversity and associated Outreach Programs a) Continue implementation of Disparity Study results and recommendations based on findings, evaluate need for workforce development grants and update diversity programs as necessary. b) Continue collaboration and outreach with youth programs focused on early development of construction industry workers. c) Collaborate with area programs focused on increasing opportunities for hiring low income, unemployed and underemployed individuals for District projects. d) Identify opportunities which incentivizes women and minorities to enter and participate in the sewer construction industry. e) Leverage 10-year anniversary of Community Benefits Agreement to increase awareness of MSD programs and positive impacts in the community. 2 Manage the District's costs and revenues to optimize financial impacts. 3.Maximize Long-Term Financing Plans for District Needs b) Update rate model to include results of Inflow and Infiltration (I/I) Allocation Study. d) Start Rate Commission process and convene the Commission. e) Prepare and submit the FY 25-28 Rate change Proposal to the Rate Commission. 3 Integrate and improve the District's business processes. 2.Integrate Capital Asset Information Across Systems (Oracle, Maximo and GIS) a) Gaps/discrepancies resolved between GIS (system of record for Collection System linear capital assets) and Oracle (System of record for financial data) for pre-Oracle Go Live capital assets prior to the Oracle upgrade to the Cloud. 3.Oracle EBS Upgrade and Outsources Payroll & Benefits a) Continue implementation of HRMS, Finance, Treasury, Capital Projects and Purchasing. b) User Acceptance, Training, and Go Live. 6.Implement Integrated Wastewater Operations & Compliance Software Solution (WIMS/PIMS) a) Complete project scope and requirements for a new software solution that meets the regulatory , operational, and financial needs of the District. b) Create RFP for new integrated software solution. c) Select and award the contract based on RFP responses. 7.Implement updated Construction Document Management System (PROLOG) a) Procure and implement replacement construction management software system needed for large facility projects. b) Complete training on construction management system. Department FY23 Strategic Business Plan FY23 Q1 Q2 Q3 Q4 208 District Strategies Objectives Milestones Department FY23 Strategic Business Plan FY23 Q1 Q2 Q3 Q4 4 1.Participate in Stakeholder Groups to Develop Sound Technical Basis for Regulatory Issues a) Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for an equitable fee structure. b) Participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. 2.Promote Appropriate Regulatory and Legislative Initiatives that Impact All Areas of District Operations a) Advocate for reasonable and affordable numeric nutrient wastewater effluent limits. b) Renew the regional General Permit 44 issued by the U.S. Army Corps of Engineers to streamline stormwater and sanitary sewer infrastructure maintenance and repair. 5 1. Implement Stormwater Operating and Capital Improvement Program a) Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion including the addition of the Gravois Creek OMCI. b) Administer OMCI Municipal Grant Program with funding from reinstated OMCI taxes to address the needs of the municipalities served by the OMCI's. c) Continue development of Stormwater CIRP to address flooding and erosion based on District Rate proposal. 2.Implement Wastewater Operating and Capital Improvement Program a) Continue procurement implementation and provide training for modeling software upgrades to take advantage of new technology that will increase engineering efficiencies in flow metering, modeling, and capacity assurance analysis. b) Conduct quarterly meetings with Engineering and General Counsel staffs to monitor and adjust projects in order to ensure compliance with the Consent Decree performance measure for the elimination of 85% Constructed Sanitary Overflows by the end of calendar 2023. c) Complete development and implement Wastewater CIRP to comply with Consent Decree and Asset management needs based on approved District Rate Proposal. 3.Implement Asset Management Program a) Purchase and implement software tools necessary to support asset management plan that incorporates the monetized ratings process for the District's linear assets. 4.Enhance Reliability of Information Technology Infrastructure c) Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). 5. Implement technologies and data driven solutions to reduce capital costs and increase utility performance a) Develop Wet Weather Optimization Plan for Lemay Service Area. b) Design and execute SCADA system upgrade. c) Plan Wet Weather Operational Structure for Organization. d) Finalize CIRP based on Wet Weather Optimization Plan for Lemay Service Area. 6 2. Improve Organizational Effectiveness through Leadership Development and Succession Management a) Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Address customer and regulatory needs through a comprehensive infrastructure management program. Create a learning and business-oriented culture based on competency and accountability. Promote appropriate standards through proactive regulatory and legislative involvement. 209 210 211 212 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T8000 - Engineering Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 51010 Salaries & Wages 16,760,138 16,504,238 18,034,440 16,428,259 18,512,930 19,068,318 19,640,368 51020 Overtime 77,601 54,393 102,440 103,040 99,565 102,552 105,629 51030 Compensatory Pay Accrual 2,040 1,690 -8,198 --- 51120 Membership & Licensing Fees 10,779 12,023 16,020 16,075 14,606 14,913 15,226 51210 FICA Taxes 1,246,176 1,226,293 1,387,471 1,215,085 1,423,856 1,466,572 1,510,569 51220 Group Insurance 1,949,703 1,847,940 2,463,446 2,037,137 2,554,939 2,752,279 2,965,250 51230 Pension Contributions-Defined Benefit Plan 3,546,893 3,504,297 3,350,165 3,373,489 3,469,544 3,300,298 3,300,298 51231 Pension Contributions-Defined Contribution Plan 555,301 470,783 406,015 496,863 630,275 630,275 630,275 51233 DC Plan-Matching Contributions -112,499 162,624 116,977 180,079 180,079 180,079 51510 Temporary Help 60,457 11 ----- Total Personnel Services $24,209,087 $23,734,166 $25,922,620 $23,795,123 $26,885,794 $27,515,284 $28,347,692 52010 Fuels,Lubricants,Gases 3,534 3,666 6,300 6,300 6,300 6,432 6,567 52030 Machinery & Equipment Parts 6,975 8,015 7,360 7,360 9,360 9,557 9,757 52040 Machinery & Equipment - Non- Capital 20,563 15,103 20,830 20,830 31,390 32,049 32,722 52050 Construction & Bldg Supplies 38,735 40,220 45,000 45,000 45,000 45,945 46,910 52070 Hardware 262 82 500 600 500 510 521 52080 Hose Supplies 4,009 -3,530 3,530 3,530 3,604 3,680 52090 Electrical Supplies 4,208 3,799 4,550 4,550 5,200 5,309 5,421 52100 Instrument Supplies 19,195 16,206 20,960 20,960 20,960 21,400 21,850 52110 Chemical Supplies 92,077 89,042 110,350 110,350 115,800 118,232 120,715 52120 Laboratory Supplies 146,529 95,901 121,309 121,309 127,400 130,075 132,807 52130 Engineering & Drafting Supply 741 579 3,100 3,100 3,100 3,165 3,232 52160 Paint Supplies 234 26 800 800 800 817 834 52170 Safety Supplies 17,862 10,863 20,306 20,306 20,306 20,732 21,168 52220 Janitorial Supplies 3,851 3,702 3,950 3,950 5,400 5,513 5,629 52240 Hand Tools 2,104 842 1,500 1,550 500 510 521 52280 Uniforms 19,228 18,530 23,898 24,251 24,803 25,324 25,856 52300 Safety Footwear 16,015 18,996 28,800 28,447 27,080 27,649 28,229 52310 Telephone/Communic Equip/Suppl 2,273 1,246 300 965 300 306 313 52320 Office Supplies 20,432 20,020 30,850 26,850 29,850 30,477 31,117 52330 Computer Supplies 39,143 3,560 30,900 32,900 350,354 153,511 156,735 52340 Computer Equipment - Non- Capital 11,513 4,619 960 18,225 7,400 7,555 7,714 52380 Publications/Training Supplies 6,912 8,291 8,331 8,331 8,931 9,119 9,310 213 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T8000 - Engineering Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 52390 Administrative Supplies 3,518 915 5,520 3,520 5,520 5,636 5,754 52400 Furniture & Office Equipment - Non-Capital 4,442 10,823 6,000 6,000 3,700 3,778 3,857 Total Supplies $484,356 $375,046 $505,904 $519,984 $853,484 $667,207 $681,219 53270 Telephone Usage 53,956 53,326 53,028 53,028 52,180 54,789 57,528 Total Usage $53,956 $53,326 $53,028 $53,028 $52,180 $54,789 $57,528 54050 Office System Services 3,076 24,205 9,300 5,000 6,300 6,432 6,567 54060 Printing Services 7,008 6,321 22,810 21,210 19,810 20,226 20,651 54080 Advertising Services 17,736 (1,189)42,800 42,800 42,800 43,699 44,616 54100 Travel Expenses 108,492 32,603 96,832 96,582 89,700 91,583 93,506 54140 Training Programs/Seminar Fees 35,267 17,674 43,209 48,209 46,454 47,430 48,426 54160 Data Imaging Services 38,883 5,518 35,300 30,300 35,000 35,735 36,485 54180 Courier And Freight 47,696 45,680 47,550 47,570 55,525 56,691 57,882 54190 Property & Other Space Rental 14,770 10,650 14,500 16,500 14,700 15,009 15,324 54420 Court Costs & Lien Fees 894 1,787 2,500 2,500 2,000 2,042 2,085 54440 Easement Acquisitions/Fees 35,438 32,749 25,000 25,000 34,000 34,714 35,443 54520 Professional Service 246,935 997,394 504,000 504,000 779,000 591,159 603,573 54530 Building Repairs & Services -150 ----- 54540 Janitorial Services 50,868 85,851 85,200 45,000 40,000 40,840 41,698 54560 Motor Vehicle Services 11,797 17,280 20,328 20,328 26,328 27,118 27,931 54570 Machinery & Equipment Services 7,190 3,033 1,500 2,000 1,500 1,534 1,570 54580 Equipment Rental 456 1,386 1,500 1,500 1,600 1,648 1,697 54610 Instrument Repair Services 55,965 59,914 56,600 56,600 72,150 73,665 75,212 54640 Damage Repairs & Services 2,300 -2,000 2,138 2,000 2,042 2,085 54650 Waste Hauling 23,755 13,388 27,700 27,700 27,700 28,282 28,876 54670 Other Governmental Fees 2,525 2,999 3,000 3,000 3,000 3,063 3,127 54680 Laboratory Testing Services 33,898 124,452 65,000 65,000 75,000 76,575 78,183 54710 Community Outreach Programs 4,497 29,635 17,500 17,500 17,500 17,867 18,243 54720 Tree Removal/Weed Spraying --3,000 3,000 5,000 5,105 5,212 Total Contractual Services $749,446 $1,511,478 $1,127,129 $1,083,437 $1,397,067 $1,222,459 $1,248,393 55030 Structural Improvements 50,500 ------ 55080 Instruments & Apparatus 27,919 54,099 106,000 127,200 54,500 55,644 56,813 55110 Computer Equipment (9,205)15,000 -(11,745)--- 214 METROPOLITAN ST. LOUIS SEWER DISTRICT FY23 General Fund Budget and Two Year Projection T8000 - Engineering Department Total Actual Actual Budget Forecast Budget Projected Projected FY20 FY21 FY22 FY22 FY23 FY24 FY25 55115 Intangible (Software)141,540 ------ Total Capital Outlay $210,754 $69,099 $106,000 $115,455 $54,500 $55,644 $56,813 Total General Fund Operating Expense $25,707,599 $25,743,115 $27,714,682 $25,567,027 $29,243,024 $29,515,384 $30,391,645 215 FY23 BUDGET 216 REVENUE FUNDS These funds were established to account for proceeds from the wastewater and stormwater user charges of the District. These revenues provide for the operation, maintenance and improvement of the District’s sewer infrastructure. Fund 3306 (Wastewater Revenue Fund) is a major revenue fund. 217  $380,000  $400,000  $420,000  $440,000  $460,000  $480,000 REVENUE FUNDS CONSOLIDATED Revenue Trends ($s in thousands) WW User Charge Revenue This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for  FY24 and FY25. All user charge revenue is initially recorded in the Revenue Funds.  A portion of the revenue is transferred to the General Fund to cover daily  operating, maintenance, and replacement costs. The remainder of the revenue is transferred to the Construction Funds for capital improvement  and replacement projects, the Special Funds for the Water Backup Insurance & Reimbursement Program; the General Insurance Fund to cover  any expenditure related to workers’ compensation, property, general liability, and flood insurance and related expenses; the Wastewater  Emergency Fund for possible emergencies; and the Debt Service Funds to retire bonds issued for capital improvements. FY22 forecast is showing an increase of 6% from FY21.  FY21 is the first year of a four year rate cycle of our current rate commission accepted  rate increases.  Rates for FY21 to FY24 were set by our Board of Trustees based on the Rate Commission Report.   The Rate Commission process  includes analyzing the historical trends, number of customer accounts and usage, the future requirement for capital and expenditures for  operation and maintenance, the debt coverage and the economy as well as possible regulatory requirements. Rate increases in the 3‐4% range  were recommended by that report for FY22 through FY24.  Declines in volumes and customers in FY21 kept revenues from growing at the same  pace as the rates.  However, FY22 is forecast to rebound, and FY23 and FY24 are expected to realize 3% increases.  For FY25, the District will go  back to the Rate Commission with a rate change proposal in February of 2023.  For now, the FY24 approved rates are used to project FY25  revenue. 218 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 3000 - Revenue Funds FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$-$-$-$-$-$- $- Wastewater User Charge 425,147,699 420,781,205 436,597,999 447,055,780 459,279,591 475,048,501 471,984,219 Stormwater User Charge (1,801) (2,391)----- Interest on Investments ------- Total Revenues 425,145,898 420,778,814 436,597,999 447,055,780 459,279,591 475,048,501 471,984,219 Total Expenditures ------- Net Operating Income (Loss) 425,145,898 420,778,814 436,597,999 447,055,780 459,279,591 475,048,501 471,984,219 Interfund Transfers (425,145,898) (420,778,814) (436,597,999) (447,055,780) (459,279,591) (475,048,501) (471,984,219) Increase (Decrease) in Fund Bal.------- Percentage of Change - - - - - - - FUND BALANCE E.O.P.$-$-$-$-$-$-$- 219 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 3306 - Wastewater Revenue Fund FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$-$-$-$-$-$- $- Wastewater User Charge 425,147,699 420,781,205 436,597,999 447,056,101 459,279,591 475,048,501 471,984,219 Interest on Investments ------- Total Revenues 425,147,699 420,781,205 436,597,999 447,056,101 459,279,591 475,048,501 471,984,219 Total Expenditures ------- Net Operating Income (Loss) 425,147,699 420,781,205 436,597,999 447,056,101 459,279,591 475,048,501 471,984,219 Interfund Transfers (425,147,699) (420,781,205) (436,597,999) (447,056,101) (459,279,591) (475,048,501) (471,984,219) Increase (Decrease) in Fund Bal.------- Percentage of Change - - - - - - - FUND BALANCE E.O.P.$-$-$-$-$-$- $- 220 Number of Accounts Billed (Annualized) Projected Annual Volume Base Charge$/service Volume Charge $/unit Compliance Charge $/service Projected Revenue Percent of Total RESIDENTIAL Metered Single Family 3,651,270 18,456,446 CCFs 28.26 5.35 $201,926,876 Low Income Assistance Credits - Metered 30,426 149,592 CCFs 14.13 2.68 830,078 Unmetered Single Family 669,732 28.26 18,926,626 Rooms Single Family 3,885,984 3.17 12,318,569 Water Closets Single Family 995,892 11.80 11,751,526 Baths Single Family 763,524 9.84 7,513,076 Separate Showers Single Family 140,808 9.84 1,385,551 Customer Assistance Program - Unmetered 15,246 129,552 580,910 Metered MultiFamily 245,328 7,398,914 CCFs 28.26 5.35 46,517,159 Customer Assistance Program - Metered 648 4,764 CCFs --21,900 Unmetered Multifamily 247,200 28.26 6,985,872 Rooms Multifamily 2,480,346 3.17 7,862,697 Water Closets Multifamily 634,260 11.80 7,484,268 Baths Multifamily 582,306 9.84 5,729,891 Separate Showers Multifamily 29,220 9.84 287,525 Customer Assistance Program - Unmetered 4,236 57,696 --222,371 $330,344,896 71.9% NON-RESIDENTIAL Base 287,880 28.26 8,135,489 Compliance 1 275,019 4.71 1,295,339 Compliance 2 2,814 65.80 185,161 Compliance 3 6,936 140.99 977,907 Compliance 4 1,908 187.98 358,666 Compliance 5 1,200 234.98 281,976 Total Non-residential Charges $11,234,538 Volume 20,759,542 CCFs 5.35 111,063,550 Extra Strength Surcharges Suspended Solids over 300 ppm 5,004 Tons 320.36 1,603,081 BOD's over 300 ppm 4,800 Tons 860.43 4,130,064 COD's over 600 ppm 2,100 Tons 430.22 903,462 $128,934,695 28.1% $459,279,591 100.0% Subtotal: RESIDENTIAL Subtotal: NON-RESIDENTIAL TOTAL WASTEWATER USER CHARGE REVENUE METROPOLITAN ST. LOUIS SEWER DISTRICT Projected User Charge Revenue WASTEWATER REVENUE FUND (3306) FY23 BUDGET 221 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 3307 - Stormwater Revenue Fund FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$-$-$-$-$-$-$- Wastewater User Charge ---(321)--- Stormwater User Charge ------- Total Revenues ---(321)--- Total Expenditures ------- Net Operating Income (Loss) (1,801) (2,391)-(321)--- Interfund Transfers 1,801 2,391 -321 --- Percentage of Change - - - - - - - FUND BALANCE E.O.P.$-$-$-$-$-$-$- 222 CONSTRUCTION FUNDS These funds were established to receive and disburse proceeds from revenue sources for construction of improvements to sewerage and drainage collection systems and treatment facilities. Capital improvement projects are continued from previous budget years due to difficulties in easement acquisitions, permit process, design revisions or special requirements. Funding sources for capital improvement projects are primarily from User Charges, Revenue Bonds, Grants and Investment Income. Fund 6660 (Sanitary Replacement Fund) is a major construction fund. 223  $‐  $50,000  $100,000  $150,000  $200,000  $250,000  $300,000  $350,000  $400,000  $450,000  $500,000 CONSTRUCTION FUNDS CONSOLIDATED Revenue Trends ($s in thousands)  Fund Balance  Interest, Fees, Misc.  Revenue Bonds & Short‐term Debt This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for FY24  and FY25. Since February 2004 the voters have authorized the issuance of  $3.12 billion in revenue bonds in order to continue the multi‐decade capital needs  program for construction of improvements to sewerage collection systems and treatment facilities.  The District has $853.1 million of this  authorization available including the recent authorization in FY21 for $500 million, with plans to issue $433.5 million in FY23. The changes to fund balance are the result of timing differences between the issuance of new bonds and the expenditure of those bond proceeds on  capital projects.   Use of fund balance is considered a revenue for presentation purposes and to balance the budget.   Another significant source of cash flows into this fund group is from the wastewater user charges.  This funding source is not represented in this  graph because it is originally received into the Wastewater Revenue Fund.  However, it is planned to provide financing of $155.8 million in FY23 for  capital project expenditures.    224 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 6660 Sanitary Replacement Fund FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$189,217,709 $186,225,765 $260,252,059 $283,617,891 $204,701,832 $385,576,333 $313,264,085 Revenue Bonds 88,143,466 282,496,201 119,000,000 119,000,000 433,500,000 290,000,000 30,000,000 Interest on Investments 12,313,505 1,120,058 2,006,500 692,140 3,425,613 4,246,081 2,007,485 Connection and Other Fees 50,600 69,273 - 104,459 --- Miscellaneous 45,122 1,000,000 - 421,804 --- Total Revenues 100,552,693 284,685,531 121,006,500 120,218,403 436,925,613 294,246,081 32,007,485 Construction and Engineering 205,321,064 296,517,308 317,932,000 298,090,014 369,711,000 506,794,000 377,611,459 Agency and Other Debt Expense 484,181 1,348,473 773,500 773,500 3,790,750 1,885,000 300,000 Interfund Labor Transfers 7,739,392 7,477,626 7,692,607 7,270,948 7,549,362 7,879,329 8,205,701 Total Expenditures 213,544,637 305,343,406 326,398,107 306,134,462 381,051,112 516,558,329 386,117,161 Net Operating Income (Loss) (112,991,944) (20,657,875) (205,391,607) (185,916,058) 55,874,501 (222,312,249) (354,109,675) Interfund Transfers 110,000,000 118,050,000 107,000,000 107,000,000 125,000,000 150,000,000 105,000,000 Increase (Decrease) in Fund Bal. (2,991,944) 97,392,125 (98,391,607) (78,916,058) 180,874,501 (72,312,249) (249,109,675) Percentage of Change -2%52%-38%-28%88%-19%-80% FUND BALANCE E.O.P.$186,225,765 $283,617,891 $161,860,453 $204,701,832 $385,576,333 $313,264,085 $64,154,409 225 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $101,000,000 58 LOWER MERAMEC RIVER SYSTEM IMPROVEMENTS - BAUMGARTNER TO FENTON WWTF TUNNEL Various $48,000,000 95 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $30,000,000 96 BISSELL POINT WWTF FINE SCREEN, CONCRETE AND GATE IMPROVEMENTS St. Louis City $18,000,000 64 BLACK CREEK - HADDINGTON COURT RELIEF SEWERS Ladue $13,000,000 65 INFRASTRUCTURE REPAIRS (WASTEWATER) (2023)Various $9,000,000 87 BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $8,600,000 3 CONSTRUCTION MANAGEMENT SERVICES - TANK/TREATMENT/PUMP STATION FACILITIES Various $7,500,000 10 HARLEM BADEN RELIEF PHASE IV (HEBERT) - HAMILTON TO DARVER TRUNK SEWER Various $6,000,000 Carryover, no page NORTH FEE FEE CREEK PUBLIC I/I REDUCTION Various $6,000,000 99 MC-02 WATSON TO EDGAR RD SANITARY RELIEF (SKME-580A)Various $5,954,000 97 CONSTRUCTION MANAGEMENT SERVICES - LOWER MERAMEC AND DEER CREEK TUNNELS Various $5,000,000 9 COLDWATER CREEK WWTF REPAIRS AND IMPROVEMENTS (2023)Unincorporated $5,000,000 68 FLORISSANT/DUNN SANITARY RELIEF (ST. ANTHONY LN TO I-270)Florissant $4,910,000 75 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT E Various $4,251,000 62 HARLEM CITYSHED MITIGATION BASINS (ASHLAND AND ESSEX)Various $4,000,000 80 PUMP STATION MANLIFT REPLACEMENT Various $4,000,000 102 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT D Various $3,594,000 61 EASEMENT ACQUISITION FOR WASTEWATER PROJECTS (2023)Various $3,500,000 72 JEFFERSON BARRACKS TUNNEL CONSOLIDATION SEWERS Unincorporated $3,400,000 88 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT C St. Louis City $3,310,000 85 CAULKS CREEK A PUMP STATION (P-750) IMPROVEMENTS Chesterfield $3,200,000 66 INFRASTRUCTURE REPAIRS (FACILITIES) (2023)Various $3,000,000 82 SAYLESVILLE SANITARY RELIEF (SAYLESVILLE DR TO S GREENTRAILS DR) Chesterfield $2,850,000 106 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT C Various $2,663,000 60 FF-15 AND FF-16 SANITARY RELIEF PHASE II REHABILITATION Maryland Heights $2,650,000 74 PRICE TO PIONEER SANITARY RELIEF Olivette $2,507,000 100 CONSTRUCTION MANAGEMENT SERVICES - LOWER AND MIDDLE RDP TUNNEL FACILITIES Various $2,500,000 8 CAULKS CREEK FORCEMAIN (RIVER VALLEY RD TO L-52)Maryland Heights $2,500,000 67 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT A Various $2,500,000 83 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CONTRACT B Various $2,500,000 84 AMBLEWOOD SANITARY RELIEF (WATERFORD DR TO BIRCHBARK DR)Florissant $2,453,000 55 BADEN CITYSHED MITIGATION BASINS (CALVARY, FREDERICK, PARTRIDGE AND TILLIE) - SEPARATION SEWERS St. Louis City $2,400,000 56 BISSELL - COLDWATER - MISSOURI - MERAMEC PUBLIC I/I REDUCTION (2023) CONTRACT F Various $2,360,000 63 GENERAL SERVICES AGREEMENT - CONSTRUCTION MANAGEMENT (2022)Various $2,000,000 15 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $2,000,000 46 BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $2,000,000 59 HARLEM BADEN RELIEF PHASE IV (HEBERT) - SEWER REHABILITATION Various $2,000,000 79 INFRASTRUCTURE REPAIRS (REHABILITATION) (2023) CORPS CSO PROGRAM Various $2,000,000 86 LAMBERT AIRPORT RESTRICTED ACCESS ASSETS INSPECTION AND REPAIR Unincorporated $2,000,000 89 EARTH CITY UPS PUMP STATION (P-702) REPLACEMENT PHASE II Unincorporated $1,800,000 Carryover, no page WHITE PLAINS SANITARY RELIEF (SALTBOX DR TO CEDAR CREEK RD)Chesterfield $1,800,000 107 LOWER MERAMEC WWTF EXPANSION PHASE II Unincorporated $1,716,000 45 BC-01 PHASE III AND BC-02 PHASE II SANITARY RELIEF (I-170 TO HEATHERWOOD DR) Various $1,705,000 1 WEBSTER GROVES TRUNK E SANITARY RELIEF (SKME-628)Webster Groves $1,512,000 53 GASLIGHT SQUARE SEWER IMPROVEMENTS PHASE II St. Louis City $1,500,000 14 WEBSTER GROVES TRUNK E SANITARY REHABILITATION AND I/I REDUCTION PHASE IV Webster Groves $1,300,000 Carryover, no page PROJECT LISTING 6660 - SANITARY REPLACEMENT FUND FY23 226 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) PROJECT LISTING 6660 - SANITARY REPLACEMENT FUND FY23 HARLEM - BADEN RELIEF PHASE IV (HEBERT) (GOODFELLOW TO HAMILTON)St. Louis City $1,279,000 78 GLENFIELD SANITARY RELIEF (WATSON WOODS CT TO S LINDBERGH BLVD)Sunset Hills $1,130,000 76 LEMAY 1 PUMP STATION (P-301) COOLING TOWER REPLACEMENT St. Louis City $1,130,000 91 BISSELL & LEMAY WWTF FLUIDIZED BED INCINERATORS Various $1,000,000 2 HATHAWAY DRIVE SANITARY RELIEF Jennings $902,000 81 LEMAY WWTF AERATION BLOWER AND POWER DISTRIBUTION IMPROVEMENTS Unincorporated $900,000 92 ROBYN HILLS NUMBER 1 PUMP STATION (P-417) REPLACEMENT Sunset Hills $780,000 103 GLEN ECHO SANITARY RELIEF (ENGELHOLM AVE TO HENDERSON AVE)Various $730,000 32 NEWPORT LANDING PUMP STATION (P-480) ELIMINATION Unincorporated $626,000 98 LEMAY NO. 3 PUMP STATION AND FORCE MAIN Unincorporated $575,000 39 LOWER MERAMEC RIVER SYSTEM IMPROVEMENTS - BAUMGARTNER TO FENTON WWTF TUNNEL Various $575,000 44 S BRENTWOOD BLVD SANITARY RELIEF (DAYTONA DR TO WALINCA TERRACE)Clayton $500,000 50 LINDSAY - ST. ALBERT PRIVATE I/I REDUCTION Florissant $500,000 94 PUMP STATION FALL PROTECTION UPGRADES - PHASE I Various $500,000 101 GEYER SANITARY RELIEF (W. MONROE AVE TO W. ESSEX AVE)Kirkwood $496,000 31 LINDSAY LANE SANITARY RELIEF (LINDSAY LANE TO LINDBERGH BLVD)Florissant $491,000 41 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2022) CONTRACT A Various $475,000 17 FABICK PUMP STATION (P-444) IMPROVEMENTS (SKME-404E)Fenton $460,000 73 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2022) CONTRACT B Various $450,000 18 CROSS TIMBERS #705 SANITARY REPLACEMENT Town and Country $425,000 69 GREENBRIAR #2 PUMP STATION (P-448) ELIMINATION Des Peres $425,000 77 GRAND GLAIZE WWTF REPAIRS AND IMPROVEMENTS (2023)Valley Park $400,000 34 LEMAY WWTF REPAIRS AND IMPROVEMENTS (2023) (GRIT TANKS AND SECONDARY CLARIFIER DUCT BANK)Unincorporated $400,000 40 ROXBURGH DR SANITARY RELIEF Clayton $400,000 104 LOWER & MIDDLE RDP CSO CONTROLS SYSTEM IMPROVEMENTS (WATERSHED CONSULTANT)Various $270,000 43 GRAND GLAIZE WWTF GRAND GLAIZE CREEK BANK STABILIZATION Valley Park $260,000 33 CAULKS CREEK A PUMP STATION (P-750) IMPROVEMENTS Chesterfield $200,000 4 CSO - MARY AVENUE SOUTH OF MANCHESTER CSO INTERCEPTOR (I-132)/OUTFALL (L-106) ELIMINATION PHASE II Brentwood $200,000 12 GENERAL SERVICES AGREEMENT - FACILITY & SEWER DESIGN (2020) CONTRACT A Various $200,000 16 GENERAL SERVICES AGREEMENT - SEWER AND CHANNEL DESIGN (2021) CONTRACT A Various $200,000 26 HAMPTON CREEK SANITARY RELIEF (DEER CREEK TRUNK TO OXFORD DR) PHASE I Various $200,000 35 COLDWATER CREEK WWTF REPAIRS AND IMPROVEMENTS (2023)Unincorporated $175,000 7 BANFF SANITARY RELIEF (CAITHNESS RD TO LANARK RD)Unincorporated $167,000 57 HARLEM - BADEN RELIEF PHASE IV (HEBERT) BUILDING DEMOLITION AND DESIGN St. Louis City $100,000 36 JEFFERSON BARRACKS TUNNEL CONSOLIDATION SEWERS Unincorporated $100,000 38 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT A Various $85,000 19 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT B Various $85,000 20 GENERAL SERVICES AGREEMENT - GEOTECHNICAL (2022) CONTRACT C Various $85,000 21 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT A Various $62,500 27 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT B Various $62,500 28 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT C Various $62,500 29 GENERAL SERVICES AGREEMENT - SURVEY SERVICES (2022) CONTRACT D Various $62,500 30 CITYSHED MITIGATION PROGRAM DESIGN (CONTRACT B)St. Louis City $50,000 6 HARLEM BADEN RELIEF PHASE IV (HEBERT) - TRUNK SEWER REHABILITATION Various $50,000 37 PUMP STATION REPLACEMENT PROJECTS (PHASE I)Various $50,000 47 NUMBER OF PROJECTS: 92 FUND TOTAL :$369,711,000 (1)  The Page refers to the page number in the Budget Supplement Appendix 92 227 FY23 BUDGET 228 STORMWATER FUNDS These funds were established to account for ad valorem taxes. The Stormwater Regulatory Fund, Districtwide Stormwater Fund and the Stormwater Operations and Maintenance Funds are reported in this section and receive, or at one time received, property tax revenues. These are primarily stormwater dedicated funds for projects and stormwater operations and maintenance. Fund balances will be spent on either projects or maintenance and operation expense primarily related to stormwater activities. STORMWATER FUNDS 229  $‐  $10,000  $20,000  $30,000  $40,000  $50,000  $60,000  Fund Balance  Interest, Fees, Misc.  Taxes STORMWATER ‐ FUNDS CONSOLIDATED Revenue Trends ($s in thousands) This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for  FY24 and FY25. The Stormwater funds acquired revenue through ad valorem taxes for operations of the District's stormwater utility, including stormwater system  operation and maintenance, rehabilitation and limited construction of infrastructure and other captial improvements, and an opeating reserve.   There are currently two of these funds (5110 ‐ Stormwater Regulatory Fund and 5120‐Distictwide Stormwater Fund)  either collecting tax revenue,  using or holding tax revenue balances.   Ad valorem taxes based on current property assessed valuation provided by the City of St. Louis and St.  Louis County are projected to remain flat through the projections period.  The Tax Ordinance found at the back of this book provides more detail  about this funding source. Interest and other miscellaneous revenue contributes small but consistent levels of  revenue in these funds with an estimatedincrease in the  projected years due to the expected grant funds for reimbursement for stormwater project. The reduction in fund balance in FY21 and FY23 through FY25 is due to planned spend down of balances in those funds mostly due to fluctuations  in capital projects.   230 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 5000 - Stormwater Funds FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$38,297,555 $39,636,266 $34,721,441 $34,258,618 $34,489,729 $25,088,656 $22,586,923 Taxes 35,502,655 35,475,118 35,065,067 34,369,278 35,388,418 35,388,418 35,388,418 Interest on Investments 1,507,265 65,061 336,000 81,885 296,972 210,284 130,774 Miscellaneous 2,783,095 - 1,400,000 1,400,000 - 13,900,000 - Total Revenues 39,793,014 35,540,178 36,801,067 35,851,163 35,685,390 49,498,702 35,519,192 Contractual Services 517,589 515,760 525,976 525,976 530,826 530,826 530,826 Construction and Engineering 14,525,641 17,164,401 11,245,000 11,853,060 17,200,000 23,325,000 19,870,000 Interfund Labor Transfers 23,437,995 23,218,108 25,473,570 23,245,559 27,355,637 28,144,608 29,215,771 Total Expenditures 38,481,225 40,898,269 37,244,546 35,624,595 45,086,463 52,000,434 49,616,597 Net Operating Income (Loss) 1,311,789 (5,358,091) (443,480) 226,567 (9,401,073) (2,501,732) (14,097,405) Interfund Transfers 26,922 (19,557)-4,543 --- Increase (Decrease) in Fund Bal.1,338,711 (5,377,648) (443,480) 231,111 (9,401,073) (2,501,732) (14,097,405) Percentage of Change 3%-14%-1%1%-27%-10%-62% FUND BALANCE E.O.P.$39,636,266 $34,258,618 $34,277,961 $34,489,729 $25,088,656 $22,586,923 $8,489,518 231 232 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 5110 - Stormwater Regulatory Fund GRAND GLAIZE CREEK WATERSHED INITIATIVE Various $200,000 152 STORMWATER QUALITY GREEN INFRASTRUCTURE - SMALL GRANT RAINSCAPING PROGRAM Various $200,000 162 GENERAL SERVICES AGREEMENT - WATER QUALITY SUPPORT SERVICES (2021)Various $150,000 140 $550,000 3 5120 - Districtwide Stormwater Fund STORMWATER INFRASTRUCTURE REPAIRS (2023)Various $4,000,000 160 STORMWATER INFRASTRUCTURE REPAIRS (REHABILITATION) (2023)Various $3,000,000 161 LARIMORE STORM SEWER Unincorporated $2,600,000 154 GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT A Various $1,300,000 137 GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT B Various $1,300,000 138 GENERAL SERVICES AGREEMENT - STORMWATER DESIGN FOR ARPA GRANT PROJECTS (2023) CONTRACT C Various $1,300,000 139 RIVER DES PERES CHANNEL REHABILITATION St. Louis City $1,000,000 144 STORMWATER ASSET INVESTIGATIONS (2022)Various $800,000 145 HALL STREET STORM SEWERS St. Louis City $600,000 142 LAMBERT AIRPORT RESTRICTED ACCESS ASSETS INSPECTION AND REPAIR Unincorporated $500,000 90 SAYLESVILLE SANITARY RELIEF (SAYLESVILLE DR TO S GREENTRAILS DR)Chesterfield $150,000 105 HALLSTEAD STORM CHANNEL PHASE IV (MCBJ-230)Unincorporated $100,000 143 $16,650,000 12 $17,200,000 15 (1)  The Page refers to the page number in the Budget Supplement Appendix 5 TOTAL: NUMBER OF PROJECTS 15 Note: Indicated projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are counted as one project . PROJECT LISTING FY23 STORMWATER FUND PROJECT Subtotal: Number of Projects 3 Subtotal: Number of Projects 12 233 FY23 BUDGET 234 OMCI FUNDS These funds were established to account for proceeds from tax levies. Expenditures are primarily for stormwater sewer improvements and stormwater maintenance and operation. Taxes collected in the various subdistricts must be spent within the subdistrict. Effective in 2016, all subdistrict tax rates were voluntarily set to zero. Beginning in FY21, tax rates in six of the subdistricts were reinstated, allowing stormwater projects to start. In addition, in the FY23 budget, an OMCI fund for the Gravois Creek Trunk Subdistrict will be reinstated. Fund balances will be spent on either projects or maintenance and operation expense in the respective subdistricts. OPERATION, MAINTENANCE and CONSTRUCTION IMPROVEMENT FUNDS 235  $(2,000)  $‐  $2,000  $4,000  $6,000  $8,000  $10,000  $12,000  $14,000  Fund Balance  Interest, Fees, Misc.  Taxes OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUNDS CONSOLIDATED Revenue Trends ($s in thousands) This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and projected for  FY24 and FY25. This graph only includes Operation, Maintenance and Construction Improvement funds, and they receive, or at one time received, property tax  revenues.  There are currently 16 of these funds either collecting tax revenue, using or holding tax revenue balances.  Stormwater capital projects  are largely funded through prior year taxes collected and held in fund balances.  Ad valorem taxes based on current property assessed valuation  provided by the City of St. Louis and St. Louis County are projected to remain flat through the projections period.  In FY17, the OMCI funds' tax rates  where set to zero, and a new Stormwater Operations and Maintenance Property Tax, approved by voters in April 2016, was levied to collect taxes in  the Districtwide Stormwater Fund for the first time.  In FY21 six of the subdistricts restarted tax assessment to assist with projects required in their  area.  In FY23 a seventh subdistrict will restart tax assessment. These seven subdistrict assessments will result in tax revenue amounting to $9.8  million dollars at varying rates from 1.4 to 10 cents per $100 assessed valuation.  The tax ordinance found at the back of this book provides more  detail about this funding source. Interest and other miscellaneous revenue contributes small but consistent levels of  revenue in these funds. The reduction in fund balance in FY20  is due to spend down of balances in those funds where tax rates were set to zero.  Actual FY21, Forecast FY22 and  the FY23 budget include an increase in fund balance due to restarting those 7 subdistrict assessments.  In FY24 construction and engineering budgets in  these funds exceed this additional revenue, but in FY25 an increase in fund balance is again anticipated.  236 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 5000 - OMCI Funds FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$11,681,406 $11,510,403 $13,705,685 $13,615,525 $15,348,219 $16,742,244 $14,097,518 Taxes (20,696) 8,255,566 8,108,876 8,246,456 9,834,062 9,834,062 9,834,062 Interest on Investments 531,301 22,152 135,700 41,124 159,690 150,413 172,832 Connection and Other Fees 16,818 1,550 ----- Miscellaneous 157,744 589 -1,085 --- Total Revenues 685,166 8,279,858 8,244,576 8,288,665 9,993,752 9,984,475 10,006,894 Contractual Services 157 120,951 121,633 121,636 147,511 147,511 147,511 Construction and Engineering 344,499 5,561,355 5,543,522 5,844,936 7,286,244 11,258,244 1,600,000 Interfund Labor Transfers 488,620 487,317 1,186,967 589,399 1,165,971 1,223,446 1,016,671 Total Expenditures 833,276 6,169,622 6,852,122 6,555,971 8,599,726 12,629,201 2,764,182 Net Operating Income (Loss) (148,110) 2,110,236 1,392,454 1,732,694 1,394,026 (2,644,726) 7,242,712 Interfund Transfers (22,892) (5,114)----- Increase (Decrease) in Fund Bal.(171,003) 2,105,121 1,392,454 1,732,694 1,394,026 (2,644,726) 7,242,712 Percentage of Change -1%18%10%13%9%-16%51% FUND BALANCE E.O.P.$11,510,403 $13,615,525 $15,098,139 $15,348,219 $16,742,244 $14,097,518 $21,340,230 237 238 239 240 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 5564 - Coldwater Creek OMCI Fund COLDWATER CREEK OMCI REIMBURSEMENTS PROGRAM Various $1,076,519 148 NORTH NEW FLORISSANT - FOX RUN STORM SEWER Florissant $600,000 158 $1,676,519 2 5566 - Deer Creek OMCI Fund DEER CREEK OMCI REIMBURSEMENTS PROGRAM Various $1,958,164 150 BEAUCAIRE DRIVE - MARK DRIVE - MONACO DRIVE STORM SEWER Warson Woods $325,000 147 DEARBORN DR STORM SEWER Warson Woods $320,000 149 LITZSINGER #10412 STORM SEWER IMPROVEMENTS Frontenac $115,000 155 DEER CREEK WATERSHED INITIATIVE Various $100,000 151 MEADOW CREEK LN 508 STORM SEWER Warson Woods $85,000 157 $2,903,164 6 5571 - Gravois Creek GRAVOIS CREEK OMCI REIMBURSEMENTS PROGRAM Various $742,722 153 GRAVOIS CREEK OMCI STORMWATER DESIGN (2023)Various $300,000 141 $1,042,722 2 5576 - Maline Creek OMCI Fund BALLMAN DRIVE 300 BLOCK STORM SEWER Ferguson $600,000 146 LONGFORD DRIVE 1851 STORM SEWER Unincorporated $95,000 156 $695,000 2 5583 - Sugar Creek OMCI Fund SUGAR CREEK OMCI REIMBURSEMENTS PROGRAM Various $149,498 163 $149,498 1 5584 - University City OMCI Fund UNIVERSITY CITY OMCI REIMBURSEMENTS PROGRAM Various $495,049 164 SIMS AVE STORM BUYOUT Overland $200,000 0-1 $695,049 2 5593 - Sem Br Of River Des Peres OMCI Fund SEMINARY OMCI REIMBURSEMENTS PROGRAM Various $124,292 159 $124,292 1 $7,286,244 16 (1)  The Page refers to the page number in the Budget Supplement Appendix 8 Note: Indicated projects have split funding, these projects include both wastewater and stormwater work. Those projects will have one budget lines for each budgeted fund but are counted as one project . PROJECT LISTING FY23 OMCI FUND PROJECT Subtotal: Number of Projects 2 Subtotal: Number of Projects 6 TOTAL: NUMBER OF PROJECTS 16 Subtotal: Number of Projects 2 Subtotal: Number of Projects 2 Subtotal: Number of Projects 1 Subtotal: Number of Projects 2 Subtotal: Number of Projects 1 241 FY23 BUDGET 242 DEBT SERVICE FUNDS These funds were established to account for and report principal and interest expenditures and a portion of bond proceeds representing required reserve amounts. In 2004, 2008 and 2012 St. Louis voters authorized the sale of Wastewater Revenue Bonds totaling $1.72 billion to fund the District’s wastewater capital improvement program. In April 2016, voters authorized an additional $900 million in revenue bonds. In addition, voters authorized an additional $500 million in revenue bonds in April 2021. 243  $‐  $50,000  $100,000  $150,000  $200,000  $250,000  $300,000  $350,000 DEBT SERVICE FUNDS CONSOLIDATED Revenue Trends ($s in thousands)  Fund Balance  Interest and Miscellaneous  Revenue Bonds This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23 and projected for FY24 and FY25. The issuance of districtwide revenue bonds is used to fund wastewater capital improvement projects. In FY23 Revenue Bonds represents the bond proceeds from an issuance $433.5 million against the authorized debt of which $278 million for Senior and $155.5 for Subordinate. An additional $28.5 million is expected to be used to refund existing debt which is included in the debt service fund (2000 Funds as shown above). Approximately 10% of the proceeds from senior bonds issued were previously required to be placed in reserve in accordance with MSD’s bond covenants. Future bond issuances are not expected to have this requirement, therefore anticipated reserve revenue to the Debt Service is not projected. In FY25 projection includes $133.9 million to be used to refund existing debt as shown above. Interest revenue in these funds is anticipated to be approximately $440 thousand per year, but is not significant to appear on the graph. While the major source of cash inflows to this fund group are from user charge revenue transferred from the Wastewater Revenue Fund to pay principal and interest as it comes due, those inflows are not reflected on this chart since they are originally received into the Wastewater Revenue Fund. The transfer of that money is planned to closely mirror the expenditures for principal and interest on the debt. 244 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 2000 - Principal and Interest Funds FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$71,177,710 $46,056,843 $51,533,513 $42,575,188 $43,732,474 $44,169,798 $44,607,123 Revenue Bonds 276,258,511 7,371,752 -- 28,486,911 - 133,560,000 Interest on Investments 1,747,835 87,653 522,600 241,425 437,325 437,325 437,325 Miscellaneous 110,728 12,349 -1,270 --- Total Revenues 278,117,074 7,471,754 522,600 242,695 28,924,236 437,325 133,997,325 Principal Payments 52,587,600 62,599,880 61,157,300 61,157,300 70,419,500 76,658,300 89,906,000 Interest Payments 84,045,981 58,831,730 63,285,283 62,031,334 64,201,009 66,302,087 63,539,374 Agency and Other Debt Expense 278,190,278 9,267,496 2,029,404 2,368,762 30,350,411 2,175,500 137,291,400 Total Expenditures 414,823,859 130,699,106 126,471,987 125,557,396 164,970,920 145,135,887 290,736,774 Net Operating Income (Loss) (136,706,785) (123,227,352) (125,949,387) (125,314,701) (136,046,684) (144,698,562) (156,739,449) Interfund Transfers 111,585,919 119,745,696 126,471,987 126,471,987 136,484,009 145,135,887 157,176,774 Increase (Decrease) in Fund Bal. (25,120,866) (3,481,656) 522,600 1,157,286 437,325 437,325 437,325 Percentage of Change -35%-8%1%3%1%1%1% FUND BALANCE E.O.P.$46,056,843 $42,575,188 $52,056,113 $43,732,474 $44,169,798 $44,607,123 $45,044,448 245 246 247 248 249 250 Debt Service On Existing Debt Principal  Payments  Net  Interest  and Fees   $‐  $20  $40  $60  $80  $100  $120  $140 Mi l l i o n s Fiscal Year Ended June 30, XXXX Total Payments including Projected Bond equals $164,970,920 FY23 ‐ $125,692,026 Principal payments made with bond proceeds as a result of an advanced refunding are not shown in this graph.  In addition Projected Payments for  Bonds after 12/31/21 are not included ‐ Proposed Principal and Interest Bond 1 and Proposed Principal and Interest Bond 2. 251 Principal Principal Interest  Ended June 30,(beginning of yr)Additions Retirements Payments Gross Debt Fees Subsidy Net Debt 2020 1,612,894,967 76,082,000 $49,773,763 63,967,490 113,741,252 2,030,686 (5,130,585) 110,641,353 2021 1,639,203,204 250,922,000 $69,969,100 64,086,726 134,055,826 1,864,649 (4,528,408) 131,392,067 2022 1,820,156,104 39,845,000 $61,157,300 65,256,175 126,413,475 1,872,651 (3,620,725) 124,665,400 2023 1,798,843,804 $64,442,500 62,707,618 127,150,118 1,863,440 (3,321,532) 125,692,026 2024 1,734,401,304 $68,283,300 60,250,764 128,534,064 1,913,099 (2,925,565) 127,521,598 2025 1,666,118,004 $68,656,000 54,183,132 122,839,132 1,720,021 (2,520,649) 122,038,504 2026 1,597,462,004 $73,556,500 56,937,366 130,493,866 1,846,625 (2,105,399) 130,235,091 2027 1,523,905,504 $72,033,900 54,385,119 126,419,019 1,642,552 (1,776,472) 126,285,099 2028 1,451,871,604 $73,905,200 52,005,155 125,910,355 1,486,055 (1,676,127) 125,720,284 2029 1,377,966,404 $75,351,400 49,743,252 125,094,652 1,333,401 (1,649,672) 124,778,381 2030 1,302,615,004 $76,111,500 47,419,718 123,531,218 1,177,346 (1,642,857) 123,065,707 2031 1,226,503,504 $76,921,800 45,034,640 121,956,440 1,036,102 (1,642,857) 121,349,685 2032 1,149,581,704 $76,679,200 42,644,134 119,323,334 904,100 (1,642,857) 118,584,577 2033 1,072,902,504 $76,112,000 40,220,129 116,332,129 774,520 (1,642,857) 115,463,791 2034 996,790,504 $78,676,300 37,710,926 116,387,226 642,479 (1,641,115) 115,388,591 2035 918,114,204 $76,200,000 35,113,907 111,313,907 522,055 (1,639,373) 110,196,590 2036 841,914,204 $72,249,000 32,119,396 104,368,396 436,191 (1,407,932) 103,396,654 2037 769,665,204 $74,097,000 29,135,855 103,232,855 355,514 (1,157,204) 102,431,165 2038 695,568,204 $73,302,000 26,061,438 99,363,438 284,677 (771,469) 98,876,645 2039 622,266,204 $76,290,000 22,929,019 99,219,019 233,335 (385,735) 99,066,620 2040 545,976,204 $82,917,670 19,450,678 102,368,348 181,124 - 102,549,472 2041 463,058,534 $85,897,789 16,537,607 102,435,396 128,032 - 102,563,428 2042 377,160,745 $84,990,513 13,519,728 98,510,241 79,937 - 98,590,178 2043 292,170,232 $48,961,921 10,337,468 59,299,389 45,820 - 59,345,209 2044 243,208,312 $39,658,095 8,276,911 47,935,006 23,093 - 47,958,099 2045 203,550,216 $39,493,121 6,608,576 46,101,697 4,648 - 46,106,344 2046 164,057,095 $33,293,085 4,884,384 38,177,469 - - 38,177,469 2047 130,764,010 $25,350,078 3,284,392 28,634,469 - - 28,634,469 2048 105,413,932 $13,400,191 2,083,528 15,483,719 - - 15,483,719 2049 92,013,741 $13,998,521 1,482,198 15,480,719 - - 15,480,719 2050 78,015,220 $11,185,166 853,054 12,038,219 - - 12,038,219 2051 66,830,054 $3,875,227 366,743 4,241,969 - - 4,241,969 2052 62,954,828 $3,993,809 248,161 4,241,969 - - 4,241,969 2053 58,961,019 $4,116,019 125,950 4,241,969 - - 4,241,969 2054 - - - - - - - Totals $366,849,000 $1,924,898,966 $1,029,971,337 $2,954,870,303 $24,402,150 -$42,829,389 $2,936,443,064 Includes DNR Fees and Trustee/Dissemination Fee Debt Service Reserve Fund Earnings Amortization schedule varies slightly due to rounding compared to the Fund Pages For more detail on the individual bonds see the Annual Comprehensive Financial Report FY21, Note 6 starting at page 44 to page 69. Metropolitan St. Louis Sewer District Existing Wastewater System Debt Service Amortization Schedule Principal payments made with bond proceeds as a result of an advance refunding are not shown in this graph. In addition, projected payments for bonds after 5/31/22 are not included - Proposed Principal and Interest Bond 1 and Proposed Principal and Interest Bond 2. Note: The majority of the Debt Service is to meet the obligation of the debt issued for the CIRP requirements most of which are related to the Consent Decree. 252 SPECIAL FUNDS IMPROVEMENT FUND: A fund to pay the cost of any improvements or to purchase any special tax bills issued for any improvement. The fund can receive monies from the General Fund, bond issues, collection of special benefit assessments or special tax bills, sale of special tax bills, or any other source provided by law. WATER BACKUP INSURANCE & REIMBURSEMENT FUND: A fund to be used to respond to water backups caused by overcharged lines or blocked mains. This fund will administer the Water Backup Insurance and Reimbursement Program. GENERALINSURANCE FUND: A fund to be used to pay the cost of workers’compensation claims, property insurance, general liability, auto liability, flood insurance and all expenses (i.e. premiums, claims, claim expenses, claim recoveries and claim accruals) related to these coverages. EMERGENCY FUNDS: Funds to be used for emergency sewer repairs and replacements in the operation and maintenance of the District that are of such a nature as to be non-measureable in the budgeting and appropriations of annual revenues. Special Funds of the District are comprised of the following: 253  $‐  $1,000  $2,000  $3,000  $4,000  $5,000  $6,000  $7,000 SPECIAL FUNDS CONSOLIDATED Revenue Trends ($s in thousands)  Fund Balance  Interest, Fees, Misc. This analysis of MSD’s revenue compares actual revenues received in FY20 and FY21, forecasted for FY22, budgeted for FY23  and  projected for FY24 and FY25. Budgeted and projected interest income is based on the average of beginning and ending fund balances unless cash balances are expected to be materially different from fund balances.  Connection Fees are recorded in the Improvement Fund and estimated  based on historical trends.  Excess funds are retained in fund balances until emergency or other funds are needed. In FY20, the General Insurance Fund had an increase for reimbursement of District's cost for an insurance claim settlement.  The budget FY23 and projected FY24 and FY25 are estimated to not include those one time events.  The most significant source of cash inflows to this fund group are from user charge revenue not shown in the graph because they  are originally received into the revenue funds and distributed in part to the Special Funds. These transfers are allocated to the  Water Backup fund, the General Insurance Fund, and the Wastewater Emergency fund for the purposes designated by ordinance  for each of these funds.  254 METROPOLITAN ST. LOUIS SEWER DISTRICT CHANGES IN FUND BALANCE 4000 - Special Funds FY20 FY21 FY22 FY22 FY23 FY24 FY25 Actual Actual Budget Forecast Budget Budget Budget FUND BALANCE B.O.P.$22,733,933 $19,409,339 $24,774,639 $22,725,490 $27,136,169 $26,316,036 $27,178,311 Interest on Investments 715,895 32,701 252,000 84,845 260,339 246,774 240,054 Connection and Other Fees 857,069 1,592,052 994,000 1,288,673 1,124,000 1,124,000 1,124,000 Miscellaneous 1,139,297 (97,828)- 375,294 --- Total Revenues 2,712,261 1,526,925 1,246,000 1,748,812 1,384,339 1,370,774 1,364,054 Personnel Services 910,828 1,265,922 1,159,113 921,499 1,307,113 1,346,326 1,386,716 Contractual Services 10,126,549 9,959,963 12,014,400 9,720,629 13,846,721 14,137,502 14,434,390 Construction and Engineering 3,393,610 3,932,995 - 271,112 4,000,000 - 500,000 Interfund Labor Transfers 116,417 151,893 24,893 24,893 50,638 24,671 14,459 Total Expenditures 14,547,404 15,310,773 13,198,406 10,938,134 19,204,472 15,508,499 16,335,565 Net Operating Income (Loss) (11,835,143) (13,783,849) (11,952,406) (9,189,321) (17,820,133) (14,137,725) (14,971,510) Interfund Transfers 8,510,550 17,100,000 13,600,000 13,600,000 17,000,000 15,000,000 15,000,000 Increase (Decrease) in Fund Bal. (3,324,594) 3,316,151 1,647,594 4,410,679 (820,133) 862,275 28,490 Percentage of Change -15%17%7%19%-3%3% - FUND BALANCE E.O.P.$19,409,339 $22,725,490 $26,422,233 $27,136,169 $26,316,036 $27,178,311 $27,206,801 255 256 PROJECT NAME MUNICIPALITY COST ESTIMATE PAGE (1) 4102 - Improvement Fund LEMAY WWTF REPAIRS AND IMPROVEMENTS (2023) (GRIT TANKS AND SECONDARY CLARIFIER DUCT BANK)Unincorporated $4,000,000 93 NUMBER OF PROJECTS: 1 FUND TOTAL :$4,000,000 (1)  The Page refers to the page number in the Budget Supplement Appendix 1 PROJECT LISTING FY23 SPECIAL FUNDS 257 FY23 BUDGET 258 BUDGET ORDINANCE An ordinance is a bill, resolution or order by means of which appropriations are given legal effect. It is the method by which the appropriation of the annual budget is enacted into law by the Board of Trustees. FY23 Budget Ordinance #15904 and Reconciliation 259 Revenue:Appropriations: Wastewater Revenue Fund 459,279,591 General Fund 183,615,567 Total Revenue Funds 459,279,591 Water Backup Insurance and Reimbursement Fund 4,827,688 General Insurance Fund 10,326,146 Fund Transfers Tax Commission Fees 678,337 Transfers from Wastewater Revenue Fund: Interfund Labor Transfers 36,121,608 General Fund 180,795,582 Total Operating Budget 235,569,346 Sanitary Replacement Fund 125,000,000 Wastewater Emergency Fund 3,000,000 Debt Service Funds 164,970,920 Water Backup Insurance and Reimbursement Fund 3,000,000 Construction Funds 3,790,750 General Insurance Fund 11,000,000 Total Other Appropriations 168,761,670 Debt Service Funds 136,484,009 Total Wastewater Revenue Transfers 459,279,591 Total Appropriations 404,331,016 PROPOSED BUDGET ORDINANCE FY23 260 PROPOSED FY23 BUDGET ORDINANCE NO. 15904 AN ORDINANCE, repealing and superseding Ordinance No. 15671, adopted June 10, 2021, and making appropriations for the current expenses of the District in the General Fund, the Water Backup Insurance and Reimbursement Fund, the General Insurance Fund, the Sanitary Replacement Fund, the Improvement Fund, the Stormwater Operations, Maintenance and Construction Improvement Funds, the Emergency Funds, and the Debt Service Funds for the fiscal year beginning July 1, 2022 and ending June 30, 2023, amounting in the aggregate to Four Hundred Four Million Three Hundred Thirty-one Thousand Sixteen Dollars ($404,331,016) to pay interest falling due on bonds issued, the costs of support, operation, and maintenance of the District and its various subdistricts, and emergencies, and shall adopt a five-year strategic operating plan as required by Charter which states the District’s objectives for the succeeding five years and includes objective targets by which to measure the district’s performance in meeting these objectives in accordance with the requirements of this Proposed Ordinance that was introduced May 12, 2022. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: REVENUE FUNDS Section One – Wastewater Revenue Fund. The total dollars collected in the Wastewater Revenue Fund is estimated to be Four Hundred Fifty-nine Million Two Hundred Seventy-nine Thousand Five Hundred Ninety-one Dollars ($459,279,591) and is hereby transferred from the Wastewater Revenue Fund to the General Fund of the District for the support, operation and maintenance of several departments, Board, 261 Civil Service Commission, the Water Backup Insurance and Reimbursement Fund, the General Insurance Fund, the Wastewater Emergency Fund, the Sanitary Replacement Fund, and the Wastewater Revenue Bond Service Funds for other lawful activities of the District including the payment of interest and principal falling due on bonds issued for the fiscal year beginning July 1, 2022, and ending June 30, 2023. WASTEWATER USER CHARGE REVENUE $459,279,591 EXPENSE APPROPRIATIONS Section Two – General Fund. There is hereby transferred from the Wastewater Revenue Fund the sum of One Hundred Eighty Million Seven Hundred Ninety-five Thousand Five Hundred Eighty-two Dollars ($180,795,582). There is hereby appropriated and set apart out of the General Fund of the District the sum of One Hundred Eighty-three Million Six Hundred Fifteen Thousand Five Hundred Sixty-seven Dollars ($183,615,567) for the support, operation and maintenance of several departments, Board, Civil Service Commission, Rate Commission and other lawful activities of the District. SECTION TWO APPROPRIATIONS $183,615,567 Section Three – Wastewater Backup Insurance and Reimbursement Fund. For the purpose of providing water backup insurance and reimbursement for basement backups, there is hereby transferred from the Wastewater Revenue Fund the sum of Three Million Dollars ($3,000,000) to the Water Backup Insurance and Reimbursement Fund. There is hereby appropriated and set apart out of the Water Backup Insurance and Reimbursement Fund the sum of Four Million Eight Hundred Twenty-seven Thousand Six Hundred Eighty-eight Dollars ($4,827,688). SECTION THREE APPROPRIATIONS $ 4,827,688 262 Section Four – General Insurance Fund. For the purpose of providing workers’ compensation, property insurance, general liability insurance, auto liability insurance and flood insurance there is hereby transferred from the Wastewater Revenue Fund the sum of Eleven Million Dollars ($11,000,000) to the General Insurance Fund. There is hereby appropriated and set apart out of the General Insurance Fund the sum of Ten Million Three Hundred Twenty-six Thousand One Hundred Forty-six Dollars ($10,326,146). SECTION FOUR APPROPRIATIONS $ 10,326,146 Section Five – Improvement Fund. For the purpose of providing for the cost of improvements there is hereby appropriated and set apart out of the Improvement Fund the sum of Fifty Thousand Six Hundred Thirty-eight Dollars ($50,638). SECTION FIVE APPROPRIATIONS $ 50,638 Section Six – For the purpose of providing Stormwater Operations, Maintenance, Administration, and Construction Improvements, there is hereby appropriated Twenty-nine Million One Hundred Ninety-nine Thousand Nine Hundred Forty-five Dollars ($29,199,945). Appropriations will be executed through the Stormwater and Operations, Maintenance, and Construction Improvement Funds as follows:  Section Six (1) – Stormwater Regulatory Fund (5110). For the purpose of providing for operations, maintenance, administration, and construction Improvement, there is hereby appropriated and set apart out of the Stormwater Regulatory Fund the sum of Six Million Three Hundred Twenty-two Thousand Six Hundred Fifteen Dollars ($6,322,615) for use by the Executive Director.  Section Six (2) – Districtwide Stormwater Fund (5120). For the purpose of providing for operations, maintenance, administration, and construction Improvement, there is hereby appropriated and set apart out of the Districtwide Stormwater Fund the sum of Twenty-one Million Five Hundred Sixty-three Thousand Eight Hundred Forty-eight Dollars ($21,563,848) for use by the Executive Director. 263  Section Six (3) – Coldwater Creek OMCI Fund (5564). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Coldwater Creek OMCI Fund the sum of Two Hundred Ninety-Eight Thousand Seven Hundred Ninety-nine Dollars ($298,799) for use by the Executive Director.  Section Six (4) – Deer Creek OMCI Fund (5566). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Deer Creek OMCI Fund the sum of Six Hundred Nine Thousand One Hundred Fifty Dollars ($609,150) for use by the Executive Director.  Section Six (5) – Gravois Creek OMCI Fund (5571). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Gravois Creek OMCI Fund the sum of One Hundred Twenty-five Thousand One Hundred Eight Dollars ($125,108) for use by the Executive Director.  Section Six (6) – Maline Creek OMCI Fund (5576). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Maline Creek OMCI Fund the sum of Sixty-nine Thousand Sixty-six Dollars ($69,066) for use by the Executive Director.  Section Six (7) – Sugar Creek OMCI Fund (5583). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Sugar Creek OMCI Fund the sum of Thirty-five Thousand Two Hundred Eighty-nine Dollars ($35,289) for use by the Executive Director. 264  Section Six (8) – University City Branch River Des Peres OMCI Fund (5584). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the University City Branch of River Des Peres OMCI Fund the sum of One Hundred Fifty-one Thousand One Hundred Two Dollars ($151,102) for use by the Executive Director.  Section Six (9) – Watkins Creek OMCI Fund (5587). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Watkins Creek OMCI Fund the sum of One Thousand Four Hundred Thirty-nine Dollars ($1,439) for use by the Executive Director.  Section Six (10) – Seminary Branch River Des Peres OMCI Fund (5593). For the purpose of providing for Operations, Maintenance, Administration, Construction Improvement, there is hereby appropriated and set apart out of the Seminary Branch of River Des Peres OMCI Fund the sum of Twenty-three Thousand Five Hundred Twenty-nine Dollars ($23,529) for use by the Executive Director. SECTION SIX APPROPRIATIONS $ 29,199,945 Section Seven – Wastewater Emergency Fund. For the purpose of providing for emergency work or repairs requiring prompt attention, there is hereby transferred from the Wastewater Revenue Fund to the Wastewater Emergency Fund the sum of Three Million Dollars ($3,000,000). There is hereby appropriated and set apart out of the Wastewater Emergency Fund the sum of Zero Dollars ($0) for use by the Executive Director in contracting for emergency work or repairs. SECTION SEVEN APPROPRIATIONS $ 0 265 Section Eight – Stormwater Emergency Fund. For the purpose of providing for emergency work or repairs requiring prompt attention, there is hereby appropriated and set apart out of the Stormwater Emergency Fund the sum of Zero Dollars ($0) for use by the Executive Director in contracting for emergency work or repairs. SECTION EIGHT APPROPRIATIONS $ 0 Section Nine – Debt Service Funds. For the purpose of providing for the support of the Wastewater Revenue Bond Debt Service of the Metropolitan St. Louis Sewer District for the fiscal year beginning July 1, 2022 and ending June 30, 2023, there is hereby transferred from the Wastewater Revenue Fund to the Debt Service Funds the total sum of One Hundred Thirty-six Million Four Hundred Eighty-four Thousand Nine Dollars ($136,484,009) to be reallocated between said funds and, if necessary, the General Fund by the Executive Director to meet the changing requirements of the Debt Service Funds. Appropriations will be executed through the Debt Service Funds as follows for total District principal and interest falling due on outstanding revenue bonds, including any new issues planned during the fiscal year, and banking fees relating to the debt with allowances for redistribution of these appropriations among the Debt Service Funds and, if necessary, the General Fund by the Executive Director to meet the changing requirements of the Debt Service Funds:  Section Nine (1) – 2004A SR Rev Bond Principal and Interest – WW – Fund (2804). There is hereby appropriated and set apart out of the Debt Service Fund Number 2804 the sum of Twenty-three Million Eight Hundred Seventeen Thousand One Hundred Dollars ($23,817,100). 266  Section Nine (2) – 2010B SR Rev Bond – Principal and Interest - WW – Fund (2812) There is hereby appropriated and set apart out of the Debt Service Fund Number 2812 the sum of Three Million Three Hundred Thirty-four Thousand Seven Hundred Dollars ($3,334,700).  Section Nine (3) – 2012A SR Rev Bond – Principal and Interest - WW – Fund (2817) There is hereby appropriated and set apart out of the Debt Service Fund Number 2817 the sum of One Hundred Twelve Thousand One Hundred Fifty Dollars ($112,150).  Section Nine (4) – 2012A SR Revenue Bond – Principal and Interest - WW – Fund (2818) There is hereby appropriated and set apart out of the Debt Service Fund Number 2818 the sum of Four Million Nine Hundred Forty Thousand Three Hundred Fifty Dollars ($4,940,350).  Section Nine (5) - 2013B SR Revenue Bond – Principal and Interest - WW – Fund (2819) There is hereby appropriated and set apart out of the Debt Service Fund Number 2819 the sum of Four Million Five Hundred Eighty-one Thousand Six Hundred Sixty-two Dollars ($4,581,662).  Section Nine (6) – 2013A SRF – Principal and Interest – Fund (2 820) There is hereby appropriated and set apart out of the Debt Service Fund Number 2820 the sum of Two Million Nine Hundred Sixty-eight Thousand Dollars ($2,968,000).  Section Nine (7) – 2015A SRF – Principal and Interest – Fund (2 821) There is hereby appropriated and set apart out of the Debt Service Fund Number 2821 the sum of Four Million Six Hundred Seventeen Thousand Five Hundred Dollars ($4,617,500). 267  Section Nine (8) – 2015B SR Revenue Bond – Principal and Interest - WW – Fund (2822) There is hereby appropriated and set apart out of the Debt Service Fund Number 2822 the sum of Eleven Million Three Hundred Sixteen Thousand Six Hundred Dollars ($11,316,600).  Section Nine (9) – 2016A SRF – Principal and Interest – Fund (2 823) There is hereby appropriated and set apart out of the Debt Service Fund Number 2823 the sum of One Million One Hundred Ninety-one Thousand Two Hundred Dollars ($1,191,200).  Section Nine (10) – 2016B SRF – Principal and Interest – WW Fund (2824) There is hereby appropriated and set apart out of the Debt Service Fund Number 2824 the sum of Four Million Four Hundred Eighty-nine Thousand Three Hundred Dollars ($4,489,300).  Section Nine (11) – 2016C SR Revenue Bond – Principal and Interest - WW – Fund (2825) There is hereby appropriated and set apart out of the Debt Service Fund Number 2825 the sum of Nine Million Five Hundred Forty-five Thousand Eight Hundred Dollars ($9,545,800).  Section Nine (12) – 2017A SR Revenue Bond – Principal and Interest - WW – Fund (2826) There is hereby appropriated and set apart out of the Debt Fund Number 2826 the sum of Twenty-five Million Eight Hundred Ninety-four Thousand Nine Hundred Dollars ($25,894,900).  Section Nine (13) – 2018A WIFIA – Principal and Interest - WW – Fund (2827) There is hereby appropriated and set apart out of the Debt Bond Service Fund Number 2827 the sum of Eight Hundred Twenty-seven Thousand Eight Hundred Forty-seven Dollars ($827,847). 268  Section Nine (14) – 2018B SRF – Principal and Interest – WW – Fund (2828) There is hereby appropriated and set apart out of the Debt Service Fund Number 2828 the sum of One Million Five Hundred Forty-nine Thousand One Hundred Dollars ($1,549,100).  Section Nine (15) – 2019A SRF – Principal and Interest – WW – Fund (2829) There is hereby appropriated and set apart out of the Debt Service Fund Number 2829 the sum of Two Hundred Thirty-four Thousand Seven Hundred Dollars ($234,700).  Section Nine (16) – 2019B SR Rev Bond – Principal and Interest – WW – Fund (2830) There is hereby appropriated and set apart out of the Debt Service Fund Number 2830 the sum of Three Million Four Hundred Forty Thousand Eight Hundred Dollars ($3,440,800).  Section Nine (17) – 2019C SR Ref Taxable Rev Bond – Principal and Interest – WW – Fund (2831) There is hereby appropriated and set apart out of the Debt Service Fund Number 2831 the sum of Nine Million Eight Hundred Twenty-two Thousand Eight Hundred Dollars ($9,822,800).  Section Nine (18) – 2020A SRF – Principal and Interest – WW – Fund (2832) There is hereby appropriated and set apart out of the Debt Service Fund Number 2832 the sum of One Hundred Seventy-six Thousand Dollars ($176,000).  Section Nine (19) – 2020B SR Rev Bond - Principal and Interest – WW – Fund (2833) There is hereby appropriated and set apart out of the Debt Service Fund Number 2833 the sum of Seven Million Seven Hundred Ninety-eight Thousand Dollars ($7,798,000).  Section Nine (20) – 2021A SRF – Principal and Interest – WW – Fund (2834) There is hereby appropriated and set apart out of the Debt Service Fund Number 2834 the sum of Four Hundred Ninety-two Thousand Two Hundred Dollars ($492,200)  Section Nine (21) – 2021B SRF – Principal and Interest – WW – Fund (2835) There is hereby appropriated and set apart out of the Debt Service Fund Number 2835 the sum of Two Million Two Hundred Seventy-nine Thousand One Hundred Dollars ($2,279,100) 269  Section Nine (22) – 2021C SR Rev Bond - Principal and Interest – WW – Fund (2836) There is hereby appropriated and set apart out of the Debt Service Fund Number 2836 the sum of Two Hundred Eighty-one Thousand Dollars ($281,000)  Section Nine (23) – 2022A SR Rev Bond - Principal and Interest – WW – Fund (2838) There is hereby appropriated and set apart out of the Debt Service Fund Number 2838 the sum of One Million Nine Hundred Eighty-one Thousand Two Hundred Dollars ($1,981,200)  Section Nine (24) – Proposed Principal and Interest Fund Bond 1 There is hereby appropriated and set apart out of the Debt Service Proposed Fund Bond 1 the sum of Two Hundred Fifteen Thousand Dollars ($215,000).  Section Nine (25) – Proposed Principal and Interest Fund Bond 2 There is hereby appropriated and set apart out of the Debt Proposed Fund Bond 2 the sum of Thirty-nine Million Sixty-three Thousand Nine Hundred Eleven Dollars ($39,063,911). SECTION NINE APPROPRIATIONS $164,970,920 Section Ten – Sanitary Replacement Fund. For the purpose of meeting the costs of repairing, rehabilitating, and replacing the District's Wastewater System, there is hereby transferred from the Wastewater Revenue Fund to the Sanitary Replacement Fund the sum of One Hundred Twenty-five Million Dollars ($125,000,000). There is hereby appropriated and set apart out of the Sanitary Replacement Fund the sum of Eleven Million Three Hundred Forty Thousand One Hundred Twelve Dollars ($11,340,112) for use by the Executive Director for internal labor costs associated with projects appropriated in this fund. SECTION TEN APPROPRIATIONS $ 11,340,112 TOTAL DISTRICT BUDGET APPROPRIATIONS $404,331,016 270 SUMMARY OF APPROPRIATIONS FY23 Fund(s) Appropriation General Fund $183,615,567 Water Backup Insurance and Reimbursement Fund 4,827,688 General Insurance Fund 10,326,146 Improvement Fund 50,638 Stormwater & OMCI Funds 29,199,945 Emergency Funds 0 Debt Service Funds 164,970,920 Sanitary Replacement Fund 11,340,112 Total District Appropriations $404,331,016 271 FY23 BUDGET 272 TAX ORDINANCE FY23 Tax Ordinance #15905 Taxes are based on voter-approved rates that are included on the tax bills issued by the City of St. Louis or St. Louis County. The tax bills are calculated based on the tax assessment information provided by the governing authority and the current tax rates. The tax revenue is realized in the first half of the fiscal year. 273 TAX ORD I NANCE NO.15905 AN ORDINANCE repealing Ordinance No. 15768, adopted September 27, 2022, and enacting a new Ordinance in lieu thereof, adjusting the previously fixed taxes by determining the amount of taxes which shall be levied, assessed, and collected in the year 2022 on all taxable tangible property in the District within the corporate limits of the City of St. Louis and St. Louis County, respectively, and in Subdistricts within the corporate limits of St. Louis County as follows: Coldwater Creek Trunk Subdistrict, Gravois Creek Trunk Subdistrict, Maline Creek Trunk Subdistrict, Watkins Creek Trunk Subdistrict, Subdistrict No. 89 (Loretta-Joplin), Subdistrict No. 342 (Clayton-Central), Subdistrict No. 366 (University City Branch of River des Peres Stormwater Subdistrict), Subdistrict No. 367 (Deer Creek Stormwater Subdistrict), Subdistrict No. 369 (Sugar Creek), Subdistrict No. 448 (Missouri River - Bonfils), Subdistrict No. 449 (Meramec River Basin - M.S.D. Southwest), Subdistrict No. 454 (Seminary Branch of River des Peres), Subdistrict No. 455 (Black Creek), Subdistrict No. 1 of the River des Peres Watershed (Creve Coeur-Frontenac Area) and Subdistrict No. 7 of the River des Peres Watershed (Wellston Area); and the Board of Trustees, in accordance with Charter Section 7.310 authorizes the Director of Finance to certify as to the amount of taxes which shall be levied, assessed and collected within the corporate limits of the City of St. Louis and St. Louis County and for the aforementioned Subdistricts; and WHEREAS, after notice of hearing as provided in the Charter, and after due consideration of all the statements made and the facts adduced at such hearing, the Board has found that it will be necessary in the calendar year 2022 to levy, 274 assess, and collect taxes on taxable tangible property in the District. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. For the fiscal year beginning July 1, 2022, The Metropolitan St. Louis Sewer District shall levy, assess, and collect taxes on all taxable tangible property within the boundaries of The Metropolitan St. Louis Sewer District. Section Two. For the general administration of The Metropolitan St. Louis Sewer District during the fiscal year beginning July 1, 2022, the amount of taxes which shall be levied, assessed, and collected in the year 2022 on all taxable tangible property within the boundaries of The Metropolitan St. Louis Sewer District shall be Five Million Eight Hundred Eighty-one Thousand Seven Hundred Seven-eight Dollars ($5,881,778), which will be produced by the rate of one point six nine cents (.0169) per one hundred dollars assessed valuation for residential property, one point six nine cents (.0169) per one hundred dollars assessed valuation for agricultural property, one point six nine cents (.0169) per one hundred dollars assessed valuation for commercial property and one point six nine cents (.0169) per one hundred dollars assessed valuation for personal property, and of which Nine Hundred Eleven Thousand Nine Hundred Sixty Dollars ($911,960), shall be levied, assessed, and collected on taxable tangible property in said District within the corporate limits of the City of St. Louis, and of which Four Million Nine Hundred Sixty-nine Thousand Eight Hundred Eighteen Dollars ($4,969,818), shall be levied, assessed, and collected on taxable tangible property within that part of the corporate limits of St. Louis County lying within said District. These funds are to be allocated to the Stormwater Regulatory Fund. Section Three. In The Metropolitan St. Louis Sewer District, for the purpose of providing revenue for the 275 operations of the District’s stormwater utility, including stormwater system operation and maintenance, rehabilitation and limited construction of infrastructure and other capital improvements, and an operating reserve, and for the anticipated tax delinquencies during the fiscal year beginning July 1, 2022, the amount of taxes which shall be levied, assessed, and collected in the year 2022 on all taxable tangible property in said District shall be Twenty-nine Million Five Hundred Six Thousand Six Hundred Thirty-nine Dollars ($29,506,639), which total sum will be produced by the rate of eight point seven two cents (.0872) per one hundred dollars assessed valuation for residential property, eight point seven two cents (.0872) per one hundred dollars assessed valuation for agricultural property, eight point seven two cents (.0872) per one hundred dollars assessed valuation for commercial property and eight point seven two cents (.0872) per one hundred dollars assessed valuation for personal property, and of which total sum Four Million Seven Hundred Five Thousand Four Hundred Ninety-six Dollars ($4,705,496), shall be levied, assessed, and collected on taxable tangible property in said District within the corporate limits of the City of St. Louis, and of which total sum Twenty-four Million Eight Hundred One Thousand One Hundred Forty-three Dollars ($24,801,143), shall be levied, assessed, and collected on taxable tangible property within that part of the corporate limits of St. Louis County lying within said District. These funds are to be allocated to the Districtwide Stormwater Fund. Section Four. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within the Coldwater Creek Trunk Subdistrict, as defined and delineated by District Ordinance No. 3755, adopted April 11, 1979, shall be Two Million Forty-eight Thousand Six Hundred Sixty-two Dollars ($2,048,662), which sum will be produced by the rate of seven point eight cents (.078) per one hundred 276 dollars assessed valuation for residential property, nine point five cents (.095) per one hundred dollars assessed valuation for agricultural property, nine point nine cents (.099) per one hundred dollars assessed valuation for commercial property and ten cents (.100) per one hundred dollars assessed valuation for personal property. Section Five. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within the Gravois Creek Trunk Subdistrict, as defined and delineated by District Ordinance No. 425, adopted July 14, 1960; and as enlarged by annexation thereto of the areas described in District Ordinance No. 1235, adopted November 12, 1964; No. 1451, adopted January 13, 1966; No. 1453, adopted January 13, 1966; No. 1485, adopted May 9, 1966; No. 1784, adopted September 12, 1968; No. 1884, adopted May 1, 1969; No. 1907, adopted June 12, 1969; No. 2012, adopted March 19, 1970; No. 2157, adopted April 22, 1971; No. 2175, adopted June 3, 1971; No. 177, adopted June 3, 1971; No. 2191, adopted July 15, 1971; No. 2272, adopted March 9, 1972; No. 2377, adopted January 26, 1973; and No. 2941, adopted October 29, 1975; shall be One Million Five Hundred Twenty-one Thousand Six Hundred Eighty-nine Dollars ($1,521,689), which sum will be produced by the rate of six point one cents (.061) per one hundred dollars assessed valuation for residential property, five point six cents (.056) per one hundred dollars assessed valuation for agricultural property, seven point six cents (.076) per one hundred dollars assessed valuation for commercial property and eight point six cents (.086) per one hundred dollars assessed valuation for personal property. Section Six. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within the Maline Creek Trunk Subdistrict, as defined 277 and delineated by District Ordinance No. 26, adopted June 30, 1955, and as enlarged by annexation thereto of the area described in District Ordinance No. 1962, adopted October 30, 1969, shall be Seven Hundred Fifteen Thousand Seven Hundred Ninety- five Dollars ($715,795), which sum will be produced by the rate of eight point one cents (.081) per one hundred dollars assessed valuation for residential property, ten cents (.100) per one hundred dollars assessed valuation for agricultural property, nine cents (.090) per one hundred dollars assessed valuation for commercial property and ten cents (.100) per one hundred dollars assessed valuation for personal property. Section Seven. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within the Watkins Creek Trunk Subdistrict, as defined and delineated by District Ordinance No. 1304, adopted April 8, 1965, and as enlarged by annexation thereto of the area described in Ordinance No. 2050, adopted June 18, 1970, and Ordinance No. 2236, adopted October 29, 1971, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Eight. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 89 (Loretta-Joplin), as defined and delineated by District Ordinance No. 383, adopted March 31, 1960, shall be Zero Dollars ($0.00), which sum will 278 be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Nine. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 342 (Clayton-Central), as defined and delineated by District Ordinance No. 1882, adopted May 1, 1969, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Ten. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 366 (University City Branch of River des Peres Stormwater Subdistrict), as defined and delineated by District Ordinance No. 2146, adopted April 14, 1971, shall be Nine Hundred Seventy-six Thousand Eight Hundred Ninety Dollars ($976,890), which sum will be produced by the rate of six point nine cents (.069) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, eight point nine cents (.089) per one hundred dollars assessed valuation for commercial property and nine point four cents (.094) per one hundred dollars assessed valuation for personal property. Section Eleven. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable 279 tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 367 (Deer Creek Stormwater Subdistrict), as defined and delineated by District Ordinance No. 2557, adopted March 27, 1974; and as enlarged by annexation thereto of the areas described in District Ordinance No. 2611, adopted June 26, 1974, shall be Four Million Twenty- one Thousand One Hundred Five Dollars ($4,021,105), which sum will be produced by the rate of six point six cents (.066) per one hundred dollars assessed valuation for residential property, one point four cents (.014) per one hundred dollars assessed valuation for agricultural property, eight point one cents (.081) per one hundred dollars assessed valuation for commercial property and nine point three cents (.093) per one hundred dollars assessed valuation for personal property. Section Twelve. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 369 (Sugar Creek Stormwater Subdistrict), as defined and delineated by District Ordinance No. 2552, adopted March 13, 1974, shall be Two Hundred Ninety-eight Thousand Six Hundred One Dollars ($298,601), which sum will be produced by the rate of four point four cents (.044) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, eight point eight cents (.088) per one hundred dollars assessed valuation for commercial property and six point nine cents (.069) per one hundred dollars assessed valuation for personal property. Section Thirteen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 448 (Missouri River - Bonfils), as defined and delineated by District Ordinance No. 3465, adopted March 22, 1978, shall be Zero Dollars ($0.00), 280 which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Fourteen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 449 (Meramec River Basin - M.S.D.Southwest), as defined and delineated by District Ordinance No. 3482, adopted March 29, 1978, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Fifteen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 454 (Seminary Branch of River Des Peres), as defined and delineated by District Ordinance No. 3485, adopted April 12, 1978, shall be Two Hundred Fifty- one Thousand Three Hundred Twenty Dollars ($251,320), which sum will be produced by the rate of five point four cents (.054) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, six point eight cents (.068) per one hundred dollars assessed valuation for commercial property and seven 281 point six cents (.076) per one hundred dollars assessed valuation for personal property. Section Sixteen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 455 (Black Creek), as defined and delineated by District Ordinance No. 3486, adopted April 12, 1978, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Seventeen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 1 of the River des Peres Watershed (Creve Coeur-Frontenac Area), as defined and delineated by District Ordinance No. 24, adopted June 20, 1955, and as enlarged by annexation thereto of the area described in District Ordinance No. 1719 adopted February 13, 1968, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Eighteen. The amount of taxes which shall be levied, assessed and collected in the year 2022 on all taxable 282 tangible property within that part of the corporate limits of St. Louis County lying within Subdistrict No. 7 of the River Des Peres Watershed (Wellston Area), as defined and delineated by District Ordinance No. 409, adopted June 16, 1960, and as such part was enlarged by District Ordinance No. 2497, adopted November 8, 1973, shall be Zero Dollars ($0.00), which sum will be produced by the rate of zero cents (.000) per one hundred dollars assessed valuation for residential property, zero cents (.000) per one hundred dollars assessed valuation for agricultural property, zero cents (.000) per one hundred dollars assessed valuation for commercial property and zero cents (.000) per one hundred dollars assessed valuation for personal property. Section Nineteen. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions hereof. 283 FY23 BUDGET 284 GLOSSARY 285 GLOSSARY Accrual Basis of Accounting: The basis of accounting under which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements. Actual Revenue or Expenditures: The revenue and expenditures incurred in previous fiscal years. Ad Valorem Tax: A tax based on value. Adopted Budget: Refers to the budget amounts as originally approved by the Board of Trustees at the beginning of the year. Amortization: The process of spreading expenses in regular installments over a specific period of time. Annual Budget: A budget applicable to a single fiscal year. Annual Budget Process or Budget Process: The annual budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets for the upcoming fiscal year. This process is strategic in nature, encompassing a multi- year financial and operating plan that allocates resources on the basis of identified goals. Appropriation: The legal authorization granted by the Board of Trustees to make expenditures and to incur obligations for purposes specified in the Budget. Assessed Valuation: A value set on real estate or other property as a basis for levying taxes within the boundaries of MSD service areas. The assessed valuation is set by the City and County Assessor, who are charged with determining the taxable value of property according to a formula set by the State of Missouri. Asset: Resources owned or held which have monetary value. Audit: An audit is an analysis or study of an accounting system that summarizes its finding with an opinion on the accuracy of the system and its reports. Balanced Budget: Refers to a budget in which revenues are equal to expenditures. Base Budget: The same level of funding as in the current year adopted budget with adjustments for one-time costs, merit, benefit and cost of living increases and general price adjustments. Basis of Accounting: A term referring to when revenues, expenditures, and transfers and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Beginning Fund Balance: Fund balance available in a fund from the end of the prior year, for use in the following year. Billing and Collection Charge: Monthly charge imposed by the District to recover the wastewater program’s share of the costs associated with issuing and collecting combined wastewater and stormwater bills. Blockage: Partial or complete interruption of flow as a result of some obstruction in a sewer. Also referred to as a stoppage. Board: Refers to the Board of Trustees of the District. The Board is comprised of six members, three of whom are appointed by the Mayor of the City of St. Louis and the remaining three are appointed by the County Executive of St. Louis County. BOD: Biochemical Oxygen Demand: the quantity of oxygen utilized in the biochemical oxidation of organic matter in five days as determined by Standard Methods and expressed in milligrams per liter. Bond Rating: The rating of bonds as a statement of a locality’s economic, financial and managerial condition. It represents the business community’s assessment of the investment quality of a local government. Highly rated bonds attract more competition in the marketplace, thereby lowering interest costs paid by MSD and its ratepayers. Bonds: A written promise to pay a specified sum of money at a specified date in the future together with periodic interest at a specified rate. B.O.P.: Beginning of Period Budget: A balanced financial plan for a given period of time, which includes an appropriation and tax levy ordinance for the various sources of revenue that finance the various funds. Budget Calendar: The schedule for completion of the various phases in the preparation and adoption of the annual budget. Budget Document: The instrument used by the budget-making authority to present a comprehensive financial program to the Board of Trustees and the public. 286 GLOSSARY Budget Message: The opening section of the budget which provides a general discussion of the most important aspects of the budget, accomplishments from previous years and new initiatives and challenges facing the District as presented by the Executive Director to the Board of Trustees. Budgetary Control: The control or management of a government or enterprise in accordance with an approved budget that keeps expenditures within the limitations of available appropriations and revenues. Budgeted Position: Those positions which have either been budgeted for and authorized in the past or which are being requested in the current year's budget. Budget Process: The annual budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets for the upcoming fiscal year. This process is strategic in nature, encompassing a multi- year financial and operating plan that allocates resources on the basis of identified goals. Bypass: A pipe, valve, gate, weir, trench or other device designed to permit all or part of a wastewater flow to be diverted from usual channels or flow. Sometimes refers to a special line which carries the flow around a facility or device that needs maintenance or repair. Capacity: The maximum rate of flow that can be carried by sewers or received by a treatment plant without causing an upset of the biological material contained in the treatment system. Capital Expenditures: An amount spent to acquire or construct a capital asset (tangible or intangible) or significantly improve the capacity or capabilities of a long-term asset. Examples of tangible assets are land, buildings, building improvements, infrastructure and infrastructure improvements, vehicles, machinery, equipment, and furniture. Examples of intangible assets are easement and software.. Capital Improvement and Replacement Program: A plan for capital expenditures to be incurred each year over a fixed period of years to meet the capital needs to maintain or replace the sewer infrastructure. It sets forth each project’s expenditures and specifies the resources estimated to be available to finance the projected expenditures. Capital Improvement Surcharge: A user charge to finance the construction of seven wastewater improvement projects required to comply with federal and state clean water laws. This monthly surcharge was last charged in April 1995 on customer bills for March 1995 service. Capital Project: A capital project is defined by the creation of a capital asset. Capital projects for the District often involve large monetary and time expenditures related to the construction of infrastructure assets for the collection and treatment of wastewater or stormwater. Capital Outlay: Items purchased utilizing departmental budgeted funds in the 55000 series of natural accounts for the purchase of land, buildings, structural improvements, equipment, vehicles, machinery, furniture, and computer equipment. Items purchased in this category generally become capital assets of the District. Cash Basis of Accounting: Under this basis of accounting, revenues are not recorded until cash is received; expenditures are recorded only when cash is disbursed. CBA: Community Benefits Agreement CCF: Hundred cubic feet: approximately 750 gallons. Channel: An improved (paved) watercourse. CIRP: Capital Improvement and Replacement Program Clean Water Act: Growing public awareness and concern for controlling water pollution led to enactment of the Federal Water Pollution Control Act Amendments of 1972. As amended in 1977, this law became commonly known as the Clean Water Act. The Act established the basic structure for regulating discharges of pollutants into the waters of the United States. It gave EPA the authority to implement pollution control programs such as setting wastewater standards for industry. The Clean Water Act also continued requirements to set water quality standards for all contaminants in surface waters. The Act made it unlawful for any person to discharge any pollutant from a point source into navigable waters, unless a permit was obtained under its provisions. It also funded the construction of sewage treatment plants under the construction grants program and recognized the need for planning to address the critical problems posed by nonpoint source pollution. CMOM: Capacity Management Operations & Maintenance: a program developed to ensure adequate capacity and proper management of the collection system to prevent sanitary sewer overflows (SSOs). COD: Chemical Oxygen Demand: the quantity of oxygen utilized in the chemical oxidation of organic and inorganic matter as determined by Standard Methods 287 GLOSSARY and expressed in milligrams per liter. COVID-19: The human infection caused by the new coronavirus strain SARS-CoV-2. Collection System: A network of pipes, manholes, cleanouts, traps, siphons, lift stations and other structures used to collect all wastewater, stormwater and combined waste water of an area and transport it a treatment plant or disposal system. The collection system includes land, public sewer lines and appurtenances, pumping stations and general property. Combined Sewers: A sewerage system that carries both sanitary sewage and stormwater runoff. Compliance Charge: Billed to non-residential customers only -- the costs related to the District's compliance activities for non- residential properties required to comply with federal and state environmental regulations. Connection Fees: One-time fees assessed when properties are connected to the sewerage system. Effective November 1, 1994, these fees are uniform throughout the District and are based on the size of the property's water tap. Construction Funds: Funds established to receive and disburse proceeds from revenue sources restricted for construction of improvements to sewerage and drainage collection systems and treatment facilities. Contractual Services: Expenses and encumbrances charged to the 54000 series of natural accounts. Expenses in this category usually involve an agreement with a particular vendor to provide a specific type of work. Contributed Wastewater Volume: The quantity of water-borne wastes emanating from residential property or non-residential property and, specifically: 1. For metered residential property, billed metered water usage during the best equated period; 2. For non-residential property, either billed metered water usage throughout the year with exemption allowances for any water that does not enter the sewer system or measured wastewater volume; and 3. For unmetered residential property, average indoor water usage characteristics of various housing attributes, as defined in the rate study, applied to each user's number of rooms and plumbing fixtures. Cross Connection: A connection between a storm drain system and a sanitary collection system. Less frequently used term to describe a connection between two sections of a collection system to handle anticipated overloads of one system. C.S.O.: Combined Sewer Overflows: discharges from a combined sewer in excess of the interceptor or regulator capacity, that are discharged into a receiving stream rather than going to a treatment plant. Customer Assistance Program: The Customer Assistance Program is available to eligible customers of the District who are billed for and pay a wastewater user charge and/or are billed for and pay a stormwater user charge. The benefit Customer Assistance Program will be a credit of fifty percent (50%) of the wastewater user charge and/or stormwater user charge billed to such customer for the applicable billing period and will be shown on bills of eligible customers which are issued on or after July 1, 1993. Debt: An obligation resulting from the borrowing of money or from the purchase of goods and services. Debt Service Funds: Funds to provide for the receipt and disbursement of monies designated for payment of interest and redemption of outstanding bond issues. Department: The Department is the primary unit in the District. Each unit is managed by a Department Director. Departments are generally composed of divisions which share a common purpose or which perform similar duties. Depreciation: The loss in service value, not restored by current maintenance, which occurs in utility plants in service due to decay, inadequacy and obsolescence. Depreciation accounting is usually based on an annual percentage allowance of plant investment equal to the original investment spread over the useful life of the facility. Detention: The delay or holding of the flow of water and water- carried wastes in a pipe system. This can be caused by a restriction in the pipe, a stoppage or a dip. Detention also means the time water is held or stored in a basin or a wet well. Sometimes called retention. Discharge Permits: Permit granted by the Missouri Department of Natural Resources (MDNR) allowing the discharge of effluent into a body of water. The point source must conform to specific water quality standards established for the receiving waters. District: Refers to The Metropolitan St. Louis Sewer District or MSD. The District is organized pursuant to Article VI, Section 30 of the Missouri State Constitution that empowers the people in the City of St. Louis and St. 288 GLOSSARY Louis County “to establish a metropolitan district for functional administration of services common to the area”. DNR: Department of Natural Resources: a Missouri state government agency responsible for the administration and enforcement of state water pollution control policies and laws. The DNR provides state grant funds to local communities for wastewater treatment and administers the EPA Construction Grants Program on behalf of the federal agency. Drainage Facility: Any system of artificially constructed drains, including open channels and separate stormwater sewers used to convey stormwater, surface water or groundwater, either continuously or intermittently to natural watercourses. Dry Weather Overflows: Discharges from a sanitary system in dry weather into a receiving stream rather than a treatment plant, usually as a result of a blockage or capacity limitation. Easement: Legal right to use the property of others for a specific purpose. EEOC: Equal Employment Opportunity Commission: a federal law enforcement agency that enforces laws against workplace discrimination. Effluent: Wastewater or other liquid – raw (untreated), partially or completely treated – flowing from a reservoir, basin, treatment process, or treatment plant. Encumbrances: Obligations incurred in the form of orders, contracts and similar items that will become payable when goods are delivered or services rendered. Enterprise Fund: A grouping of activities whose expenditures are wholly or partially offset by revenues collected from consumers in the form of fees or charges. E.O.P.: End of Period EPA: Environmental Protection Agency: a federal agency that is responsible for the administration and enforcement of national water pollution control policies and laws. The EPA provides federal grant funds to local governments for wastewater treatment under the provisions of the EPA Construction Grants Program. Expenditure: An amount of money disbursed or obligated. An expenditure is a decrease in net financial resources. This includes current operating expenses requiring the present or future use of current assets. FASB: Financial Accounting Standards Board: independent, private, non-governmental authority for the establishment of accounting principles in the United States. Fees: A general term used for any charge levied by government associated with providing a service. Fiscal Year: An annual period used for budgeting and reporting purposes. For the District, this period is from July 1 through June 30. Flood Protection Facilities: A facility that affects the flood conveyance capacity or flood management behavior of the System, usually designed to reduce flooding hazards. Flow: The volume of effluent expected to enter a treatment system over a given time period. Treatment systems are designed based upon estimates of peak and average flow for different segments of the system. FTE: Full-Time Equivalent positions Full-time Equivalent: A measure that converts a part-time employee into a fraction of a full-time employee based on a ratio of hours worked over the hours worked by a full-time employee. All MSD employees are full-time employees, so the term represents the number of employees budgeted. Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulation, restriction, or limitations. Fund Balance: The excess of the assets of a fund over its liabilities, reserves and carry-over. Fund Group: A category of various funds logically grouped on the basis of the purpose of each fund. At the present time, the District has the following fund groups: 1. General Fund 2. Revenue Funds 3. Operation, Maintenance and Construction Improvement (OMCI) Funds 4. Construction Funds 5. Debt Service Funds 6. Special Funds 289 GLOSSARY Note: Descriptions of each fund group are included in that group’s section of the Budget. GAAP: Generally Accepted Accounting Principles: uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the practice at a particular time; they include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provides a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GASB. GASB: Governmental Accounting Standards Board: an independent, private sector organization that establishes accounting and financial reporting standards for U.S. state and local governments that follow GAAP. General Fund: A fund established by administrative action to finance the ordinary operations of The Metropolitan St. Louis Sewer District. The General Fund may be used for any legally authorized purpose of the District. It is used to account for all revenues and activities of the District not provided for in any other fund. It may receive any and all revenues not specifically designated for other funds. All wastewater and stormwater user charges receivable, less allowances for uncollectible accounts, are recorded in the General Fund. General Obligation Bonds: Used to finance Capital Improvement Projects that result in community wide benefits. These bonds are backed by the full faith and credit of the issuer and can only be issued by governmental units with taxing authority. Issuance of General Obligation Bonds requires 67% approval of those voting. GFOA: Government Finance Officers Association: an independent organization that represents public finance officials throughout the United States and Canada, to advance excellence in public finance. Goal: General statements of public policy, purpose, and intent. Governmental Fund: Term used in governmental accounting to apply to all funds except the enterprise funds. Grant: A contribution of assets by one governmental unit to another unit. The contribution is usually made to aid in the support of a specified function, such as sewer construction, pollution control, etc. I/I: Infiltration/Inflow: the total quantity of water from both infiltration and inflow with no distinction of the source. Impervious Area: Areas of the land surface that by man's action become blocked or sealed from rainfall causing runoff in excess of the natural rain water runoff of undisturbed land. Examples are parking lots and rooftops. Impervious Charge: A system for assessing fees for stormwater runoff conveyances and controls, and the operation and maintenance of same based upon the amount of impervious area on the rate payer's property. In-House Contracts: Planning, design and engineering services provided by existing District staff in order to accomplish specific capital projects. Infiltration: The seepage of groundwater into a sewer system, including service connections. Seepage frequently occurs through defective or cracked pipes, pipe joints, connections or manhole walls. Inflow: Water discharged into a sewer system and service connections from such sources as, but not limited to, roof leaders, cellars, yard and area drains, foundation drains, cooling water discharges, drains from springs and swampy areas, around manhole covers or through holes in the covers, cross connections from storm and combined sewer systems, catch basins, storm waters, surface runoff, street wash waters or drainage. Inflow differs from infiltration in that it is a direct discharge into the sewer rather than a leak in the sewer itself. Inlet: A surface connection to a drain pipe. A chamber for collecting storm water with no well below the outlet pipe for collecting grit. Often connected to a catch basin or a “basin manhole” (“cleanout manhole”) with a grit chamber. Intercepting Sewer: A sewer that receives flow from a number of other large sewers or outlets and conducts the waters to a point for treatment or disposal. Often called an “interceptor”. Lateral Sewer: That portion of the sewer lying within a public street or easement connecting a building sewer service to the main sewer. Levy: The total amount of taxes, special assessments or service charges imposed by a government. Liabilities: Obligations incurred in past or current transactions requiring present or future settlement. 290 GLOSSARY Lift Station: A wastewater pumping station that lifts the wastewater to a higher elevation when continuing the sewer at reasonable slopes would involve excessive depths of trench. Also, an installation of pumps that raise wastewater from areas too low to drain into available sewers. Main Sewer: A sewer line that receives wastewater from many tributary branches and sewer lines and serves as an outlet for a large territory or is used to feed an intercepting sewer. Management Position: Any District position which is filled by an administrative, supervisory or professional employee and certain positions which are non-bargaining due to the nature of the duties performed. Manhole: An opening in a sewer provided for the purpose of permitting operators or equipment to enter or leave a sewer. Sometimes called an “access hole”, or “maintenance hole”. MDNR: Department of Natural Resources: a Missouri state government agency responsible for the administration and enforcement of state water pollution control policies and laws. The DNR provides state grant funds to local communities for wastewater treatment and administers the EPA Construction Grants Program on behalf of the federal agency. Metered Multi-Unit Residential/Non-Residential Property: All property connected to an approved water meter which is: 1. Used only for human residency and consists of two or more dwelling units connected to a single approved water meter; or 2. Used for commercial or industrial purposes and connected to an approved water meter(s). Metered Property: All property connected to an approved water meter through which the amount of water usage is measured. Metered Single-Unit Residential Property: Property used only for human residency, which consists of a single dwelling unit which is connected to an approved water meter which serves only such unit. MGD: Million gallons per day: standard measure of wastewater flow through treatment plants. mg/l: Milligrams per liter, commonly used to report results of laboratory analysis of wastewater samples and used as a parameter for wastewater extra strength user charge rate. Mission Statement: A brief description of the purpose and functions of an agency, department, etc. MSD: The Metropolitan St. Louis Sewer District. MSDPC: MSD Project Clear is a long-term effort undertaken by the Metropolitan St. Louis Sewer District (MSD) as part of an agreement with the U.S.E.P.A. and the Missouri Coalition for the Environment. The goals for this 28-year initiative are:  Improve water quality for the entire St. Louis Region  Resolve community issues caused by the nature and design of St. Louis’ legacy wastewater system  Keep the public informed with clear and timely updates. Multi-Unit Residence: Residential property which consists of a dwelling under one roof for occupancy by more than one family, including but not limited to, flats, apartments, condominiums. MWBE: Minority and Woman-owned Business Enterprises: a program to encourage the participation of Minority and Women's business concerns in the purchase of professional services and construction work. Natural Account: Detailed classification established to budget and account for the purchase of specific goods and services and the receipt of revenues from specific sources. Natural Account Group: A grouping of accounts based on the category of goods or services purchased; for example: Personnel Services. Non-Residential Property: Property other than Residential Property. Normal Wastewater: Waters or wastes having: 1. A five-day Biochemical Oxygen Demand (BOD) not greater than 300 milligrams per liter; and 2. Containing not more than 300 milligrams per liter of Suspended Solids (SS); and 3. Having a Chemical Oxygen Demand (COD) not greater than 600 milligrams per liter. O & M: Operational Maintenance & Repairs Objectives: The yearly organizational goals expected to be achieved, listed in order of priorities with their associated costs including estimates of salaries, equipment, supplies, etc. 291 GLOSSARY Obligations: Amounts which a government may be required legally to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. Obstruction: Any solid object in or protruding into a wastewater flow in a collection line that prevents a smooth or even passage of the wastewater. OMCI Funds: Operation, Maintenance and Construction Improvement Funds established to account for proceeds from tax levies in the various subdistricts and grants in aid of construction. Expenditures are primarily for stormwater operations and maintenance. Ordinance: A bill, resolution or order by means of which appropriations are given legal effect. It is the method by which the appropriation of the annual budget is enacted into law by the Board of Trustees. O.R.S.: Overflow Regulation System: the District's O.R.S. is focused on the facilities that evolved from the former direct discharges of sewage from trunk sewers into the Mississippi River. The system now includes the management, operation, maintenance and improvements to the integrated trunk sewer outfalls, riverfront interceptors, interceptor pump stations and flood protection facilities. The goal of the O.R.S. is to capture the maximum amount of sewage and wastewaters and convey these to wastewater treatment plants at Bissell Point and Lemay. Outlet: Downstream opening or discharge end of a pipe, culvert, or canal. Performance Scorecard Measures: A measure of the level of activity and service in the functional areas of the various departments. Permittee: An industrial user required to maintain an industrial waste permit due to the quality or quantity of their wastewater or point of discharge. Personnel Services: Expenditures and encumbrances charged to the 51000 series of natural accounts. This category of expenses includes items such as salaries, overtime and benefits. Pollutant: Any substance which, alone or in combination with other substances, if discharged to waters of the State in sufficient quantities, causes or is reasonably certain to cause any alteration of the physical, chemical or biological properties of such waters; or to create a nuisance; or to render such waters harmful, detrimental or injurious to public health, safety or welfare, or to domestic, industrial, agricultural, recreational, or other legitimate beneficial uses or to any organism, aquatic life, plant or animal. Preventive Maintenance: Regularly scheduled servicing of machinery or other equipment using appropriate tools, tests and lubricants. This type of maintenance can prolong the useful life of equipment and machinery and increase its efficiency by detecting and correcting problems before they cause a breakdown of the equipment. Professional Services: Expenditures for services rendered to the District under formal contract by "professionals" who have a high degree of skill and training in technical fields. Examples are: auditors, management consultants, lawyers, engineers, etc. Property: An improved lot or parcel of real property, whether public or private, which is served by the System. Property Tax: An annual tax on the values of certain types of personal or business wealth, represented by real or personal property. Property Tax Rate: The amount of tax stated in terms of a unit of the tax base expressed as dollars per $100 of assessed valuation. Proposed Budget: The recommended budget submitted by the District to the Board of Trustees. Proprietary Fund: A fund used in governmental accounting to account for activities that involve business-like interactions, either within the government (Internal Service Fund) or outside of it (Enterprise Fund). Pump Station: Installation of pumps to lift wastewater to a higher elevation in places where flat land would require excessively deep sewer trenches. Also used to raise wastewater from areas too low to drain into available collection lines. These stations may be equipped with air-operated ejectors or centrifugal pumps. Raw Sewage: Plant influent or wastewater before any treatment. Regulator: A device used in combined sewers to control or regulate the diversion of flow. Represented Position (Bargaining Unit): Any District position, which is filled by an employee represented by a labor union. Reserves: Funds set aside for a specific purpose or use. Residential Property: Property used only for human residency. 292 GLOSSARY Resolution: Resolutions are used to express opinions about a particular item of business. Unlike ordinances, resolutions are not laws and are not proposed to the MSD Board of Trustees prior to adoption. Resolutions are often used to honor public officials, recognize retiring employees for their years of service and acknowledge strategic business plans. Resources: The actual assets of a governmental unit, such as cash, grants receivable, land, buildings, etc. including estimated revenues applied to the current fiscal year, and bonds authorized and unissued. Retention: That part of the precipitation falling on a drainage area which does not escape as surface stream flow during a given period. It is the difference between total precipitation and total runoff during the period, and represents evaporation, transpiration, subsurface leakage, infiltration, and, when short periods are considered, temporary surface or underground storage on the area. The delay or holding of the flow of water and water-carried wastes in a pipe system. This can be due to a restriction in the pipe, a stoppage or a dip. Also, the time water is held or stored in a basin or wet well. This is also called detention. Revenue: Income generated by user charges, taxes, investment income, land rental, connection fees, as well as Federal, State, and local grants. Revenue Bonds: Debt used to finance Capital Improvement Projects serviced from the net revenues from a particular enterprise, such as sewer service. Issuance of Revenue Bonds requires 67% approval of those voting. Revenue Funds: Funds established to account for proceeds from user charges and connection and other fees within the subdistricts to provide for operations and maintenance within the user charge revenue subdistricts. Sanitary Sewer System: The sewer system that caries liquid and wastewater from residences, commercial buildings, industrial plants and institutions, together with minor quantities of ground, storm and surface waters that are not admitted intentionally. SBOP: The Strategic Business and Operating Plan is a business-focused blueprint for serving our ratepayers now and into the future. The SBOP’s goals are clear:  Deliver consistent, high quality customer service,  Comply with all legal and regulatory requirements and schedules,  Minimize customer rate increases; and  Be accountable to the St. Louis community. Separate Sewers: Sewers that carry only sanitary sewage or stormwater runoff. The separate sanitary sewers are ultimately connected to a treatment plant. Separate storm sewers discharge to streams. Served: Property with an active sewer connection, either directly or indirectly, to a sanitary or drainage facility owned or operated by the District and laying within the District, or to property which otherwise discharges wastewater directly or indirectly into such facilities, or if the discharges of such substances therefrom ultimately enter said facilities. Service Area: The geographic area where the District provides wastewater and stormwater services. This area includes St. Louis City and approximately 90% of St. Louis County, extending out to approximately Highway 109 at its western boundary. Sewage: The used water and water-carried solids from homes that flow in sewers to a wastewater treatment plant. The preferred term is wastewater. Sewer: A pipe or conduit that carries wastewater or drainage water. The term “collection line” is often used also. Sewer Main: A sewer pipe to which building laterals are connected. Also called a collection main. Sewerage: A comprehensive term that includes facilities collecting, pumping, treating and disposing of wastewater. Single Family: Residential Property used as a dwelling by one family only. Sludge: The solids removed from sewage during wastewater treatment. Special Funds: Special funds of the District are comprised of the following: 1. Improvement Fund 2. Workers’ Compensation Fund 3. Water Backup Fund 4. Wastewater Emergency Fund 5. Stormwater Emergency Fund SRF: State Revolving Fund: bonds or other obligations issued in accordance with the District’s participation in the Missouri State Revolving Fund Program of the Missouri Department of Natural Resources and the 293 GLOSSARY State Environmental Improvement and Energy Resources Authority, where SRF Bonds may be Senior SRF Bonds or Subordinate SRF Bonds. SS: Suspended solids that either float on the surface of or are suspended in wastewater as determined by analysis for non-filterable milligrams per liter. Storm Sewer: A separate pipe, conduit or open channel (sewer) that carries runoff from storms, surface drainage and street wash, but does not include domestic and industrial wastes. Storm sewers are often the recipients of hazardous or toxic substances due to the illegal dumping of hazardous wastes or spills created by accidents involving vehicles and trains transporting these substances. Also see sanitary sewer system. Stormwater: Any water resulting from precipitation that may or may not be mixed with an accumulation of dirt, soil, and other debris or substances collected from the surface on which such precipitation falls or flows. Stormwater Funds: These funds were established to account for ad valorem taxes. These are primarily stormwater dedicated funds for projects and stormwater operations and maintenance. Stormwater Runoff: The portion of rainfall, melted snow or irrigation water that flows across ground surfaces and eventually is returned to streams. Runoff can pick up pollutants from the air or land and carry them to the receiving waters. Stormwater Service Area: Any area where stormwater facilities have been dedicated to the District and the District has accepted dedication of said facilities or the District has adopted a resolution accepting the responsibility for operation and maintenance of stormwater facilities. Stormwater Service Charge: The user charge to generate the revenue to operate and maintain the stormwater system. Subdistrict: Separate taxing area of the District. Surcharge: The additional charge for the treatment of wastes containing suspended solids, biochemical oxygen demand or chemical oxygen demand exceeding normal wastewater strengths. System: The entire sewer and drainage system owned and operated by the District for the collection, storage, handling, and treatment of wastewater, for the collection, storage, handling and treatment of stormwater, and combined sewers for the collection, storage, treatment and handling of wastewater and stormwater to serve the needs of the District and its inhabitants and others, including all appurtenances and facilities connected therewith or relating thereto, together with all extensions, improvements, additions and enlargements thereto hereafter made or acquired by the District. Tax Levy: The total amount of taxes imposed by a government. Taxes: Mandatory charge levied by a governmental unit for the purpose of financing services performed for the common benefit. Toxic Substance: Any substance whether gaseous, liquid or solid which, when discharged to a wastewater system watercourse in sufficient quantities, interferes with or passes through any wastewater treatment process, or constitutes a hazard to human beings, animal life, plant life, or inhibits aquatic life. Treatment Plant: An arrangement of pipes, equipment, devices, tanks and structures for treating wastewater and industrial wastes. A water pollution control plant. Trunk Sewer: A sewer that receives wastewater from many tributary branches or sewers and serves a large territory and contributing population. Also see main sewer. Unmetered Residential Property: Property used only for human residency, which is not Metered Residential Property. Useful Life: The expected period of time during which a depreciating asset will be productive. User: The occupant or owner of the Property, the person holding a permit for water service to the property, or any person served by the system. User Charge: The major charges established by the District; Wastewater User Charge and Stormwater Service Charge. Utilities: Expense incurred for gas, electric, phone and water at all District locations. Volume Charge: Wastewater charge applied to each customer’s Contributed Wastewater Volume. It includes both OM&R and capital costs components. Wastewater: The water-borne wastes emanating from Residential Property or Non-residential Property, together with such groundwater, surface water, or stormwater as cannot be avoided. 294 GLOSSARY Wastewater User Charge: The costs related to the amount of wastewater discharged to the sanitary sewer system. Measured in hundred cubic feet (CCF’s) for customers with water meters and the number of rooms and indoor plumbing fixtures for customers without water meters. Water Backup Program: The District will review the total cost to a homeowner of repairs necessary after a sewer backup, provided the problem is found in a part of the sewer line maintained by MSD. Insurance coverage has been obtained to limit the District's total expense. Water Quality: The suitability of water for given uses as measured by the levels of pollutants it contains. Water use classification includes: public water supply; recreation; propagation of fish and other aquatic life, agricultural use and industrial use. Watershed: A region or area bounded peripherally by water parting and draining ultimately to a particular watercourse or body of water. Working Capital: Cash, materials and supplies, and other similar current assets necessary in the operation of the facility. WWTP: Wastewater Treatment Plant 295 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Metropolitan St. Louis Sewer District, Missouri for its annual budget for the fiscal year beginning July 1, 2021. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.