HomeMy Public PortalAboutFiscal Year 2022 Annual Comprehensive Financial Report (ACFR)THE METROPOLITAN ST. LOUIS SEWER DISTRICT • ST. LOUIS, MISSOURI
ANNUAL COMPREHENSIVEFINANCIAL REPORT
FISCAL YEARS ENDED JUNE 30, 2022 AND 2021
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
ST. LOUIS, MISSOURI
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED JUNE 30, 2022 AND 2021
Report Prepared And Submitted By The
Department of Finance
Marion M. Gee
Director Of Finance
Contents
Page
Part I – Introductory Section:
Letter of Transmittal .................................................................................................................... i
Organization Chart .................................................................................................................... xii
Certificate Of Achievement For Excellence In Financial Reporting ...................................... xiii
Part II – Financial Section:
Independent Auditors’ Report ..................................................................................................... 1
Management’s Discussion And Analysis .................................................................................... 4
Basic Financial Statements
Statements Of Net Position ................................................................................................. 19
Statements Of Revenues, Expenses, And Changes In Net Position ................................. 21
Statements Of Cash Flows .................................................................................................. 22
Statements of Fiduciary Net Position ................................................................................. 24
Statements of Changes in Fiduciary Net Position ............................................................. 25
Notes To Financial Statements ........................................................................................... 26
Required Supplementary Information
Schedule Of Changes In Net Pension Liability And Related Ratios .............................. 117
Schedule Of Employer Contributions – Employees’ Pension Plan ................................. 118
Schedule Of Changes in Total OPEB Liability ................................................................ 119
Part III – Statistical Section:
Net Position By Component ..................................................................................................... 120
Changes In Net Position .......................................................................................................... 121
Operating Revenues By Source ............................................................................................... 122
Operating Expenses ................................................................................................................. 123
Non-Operating Revenues And Expenses ................................................................................ 124
User Charge Rates ................................................................................................................... 126
User Charge Revenues ............................................................................................................. 127
Sewer User Charges (Composite-Annual) .............................................................................. 128
Number Of Customers By Type .............................................................................................. 129
Ten Largest Customers ............................................................................................................ 130
Ratios of Outstanding Debt By Type ...................................................................................... 131
Computation Of Overlapping Debt ......................................................................................... 132
Pledged Revenue Coverage ...................................................................................................... 133
Demographic And Economic Statistics ................................................................................... 134
Principal Employers (St. Louis Metropolitan Area)............................................................... 135
Employment Level .................................................................................................................... 136
Average Flow ............................................................................................................................ 137
Operating And Capital Indicators ........................................................................................... 138
Introductory Section
Vision Statement
Quality Service Always
Mission Statement
To protect the public’s health, safety, and water
environment by responsibly providing wastewater
and stormwater management
Values
Integrity
Teamwork
Excellence and Innovation
The District Employees
Customer Satisfaction
Mission, Vision, Value statements are important elements of a
strategic business plan. The Mission statement keeps the
District focused on its essential activity, the Vision statement
points to its ideal purpose, and the Value statement conveys the
principles that must shape our actions.
i
November 1, 2022
The Board of Trustees
The Metropolitan St. Louis Sewer District
The Annual Comprehensive Financial Report (“ACFR”) of The Metropolitan St. Louis
Sewer District (“MSD” or the “District”) for the fiscal year (“FY”) ended June 30, 2022 is
submitted herewith. The District’s Finance Department prepared this report. The
District is responsible for the accuracy of the data and the completeness and fairness of
the presentation of the financial statements and other information presented herein. We
believe the presentation is accurate in all material respects and includes all disclosures
necessary to enable the reader to gain a reasonable understanding of the District’s
financial activities. In the ACFR, the District’s financial activities are measured on a
single enterprise fund basis where all funds of the District and its sub-districts are
consolidated.
The District’s ACFR includes an Introductory Section, a Financial Section, and a
Statistical Section. The Introductory Section includes this transmittal letter, an
organization chart as of June 30, 2022 which lists the District’s Board of Trustees, Rate
Commission Chair, members of the Civil Service Commission, and management staff and
the Government Finance Officers Association’s Certificate of Achievement For Excellence
In Financial Reporting presented to the District for its Annual Comprehensive Financial
Report for the fiscal year ended June 30, 2021. The Financial Section includes the
independent auditors’ report, management’s discussion and analysis, the District’s basic
financial statements and required supplementary information. The Statistical Section
includes financial, economic, and demographic information, generally presented on a
multi-year basis.
The ACFR includes all funds of the District. The operations of these funds, as reflected
in the financial statements, are under the control of the District’s governing body. The
District has determined there were no other agencies or entities that met the established
criteria for inclusion in the reporting entity. Separate from the District’s enterprise
financial statements, the District’s fiduciary component unit’s financial statements for
The Metropolitan St. Louis Sewer District Employees’ Pension Plan are also included in
the ACFR.
Metropolitan St. Louis
Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
www.msdprojectclear.org
The Board of Trustees
The Metropolitan St. Louis Sewer District
ii
Organization
MSD was created in 1954 to provide a metropolitan-wide sewer system to serve the City
of St. Louis and most of the more heavily populated areas of St. Louis County. Before
MSD’s creation, the City of St. Louis, various municipalities, and private sewer
companies provided sewer service that primarily included only collecting and
transporting sewage from small geographic areas to nearby rivers and streams with little
or no treatment. Most of the municipalities or private sewer companies serving the area
did not have the jurisdictional authority or financial resources needed to eliminate health
hazards from untreated sewage.
When the District began operations, it took over the publicly owned wastewater and
stormwater drainage facilities within its jurisdiction and began the construction of an
extensive system of collector and interceptor sewers and treatment facilities. In 1977,
voters approved the District’s annexation of a 270 square mile area of the lower Missouri
River and lower Meramec River watersheds. The District purchased the Fee Trunk Sewer
Company and the Missouri Bottoms Sewer Company in 1978. MSD has since acquired
other investor-owned or municipally operated systems.
The District’s service area now encompasses 520 square miles including all 66 square
miles of the City of St. Louis and 454 square miles of St. Louis County. The current
population served by the District is approximately 1.3 million representing
approximately 429,000 accounts.
MSD is organized pursuant to Article VI, Section 30 of the Missouri State Constitution
that empowers the people of St. Louis County and the City of St. Louis “to establish a
metropolitan district for functional administration of services common to the area.” MSD
is the only district established pursuant to that section of the Missouri State Constitution.
The Charter of MSD (“Plan”), approved by voters in 1954 and amended in 2000, 2012 and
2021, established the District. The Plan describes the District as “a body corporate, a
municipal corporation, and a political subdivision of the state.” As a political subdivision
of the state, MSD is comparable to a county or city, such as St. Louis County or the City
of St. Louis.
The Plan established the governing body of the District as a six-member Board of
Trustees (“Board”) with three members appointed by the Mayor of St. Louis and three
members appointed by the St. Louis County Executive. Each Trustee shall be appointed
for a term of four years. No Trustee shall serve more than two full consecutive terms plus
any portion of an unexpired term; provided, however, that each Trustee shall serve until
his/her successor shall be appointed and qualified. No more than two trustees appointed
from the City or County shall be a member of the same political party.
The Board of Trustees
The Metropolitan St. Louis Sewer District
iii
Unlike a corporation’s board of directors that is responsible solely to the stockholders who
choose to invest in the corporation, MSD’s Board members are trustees of public property
and public funds. They are responsible to all citizens within the District.
According to the Plan, the Board enacts District ordinances, determines policies, and
appoints the Executive Director, the Secretary-Treasurer, and the Internal Auditor. The
Executive Director appoints all other District officials. Among its duties, the Board makes
all appropriations, approves contracts for improvements, and engages an accounting firm
to perform the annual independent audit of the District.
The Plan prescribes other duties of the Board and grants numerous broad powers, subject
to federal and state laws, to the District and the Board of Trustees. Among other things,
the Plan outlines the following requirements or provisions:
Requires that MSD operate with a balanced budget;
Details how MSD can tax property and requires an annual public hearing
on all taxes levied by the District;
Details how MSD can establish user charges;
Requires MSD to establish civil service rules and regulations governed by a
Civil Service Commission;
Provides how the original boundaries of the District may be extended to
include any area in St. Louis County; and
Requires MSD to approve all plans and designs for proposed construction,
alteration, or reconstruction of sewer or drainage facilities within the
District’s boundaries.
The District is also governed by the Missouri State Constitution and various federal and
state laws that, among other requirements, mandate the following:
MSD must hold permits for all sanitary discharges. These permits require a
minimum of secondary treatment;
MSD must provide wastewater treatment in an area-wide manner to qualify
for federal and state grants;
MSD must operate, maintain, and replace facilities to provide proper
wastewater treatment or be subject to penalties and fines; and
MSD must set user charge rates in compliance with the Federal Clean Water
Act. These rates must be submitted to the Missouri Department of Natural
Resources to receive future construction grants and to avoid the possibility
of refunding past grants.
During fiscal 2022 the primary source of funding for the operation and maintenance of
MSD’s wastewater system was a user charge averaging $699.96 per year or $58.33 per
month for a single-family residence. The District’s charges for residential wastewater
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The Metropolitan St. Louis Sewer District
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service are tied to the amount of measured water usage during a winter quarter. For
residential properties without water meters, the charges are based on housing attributes
(such as the number of rooms, baths, and toilets) that correlate to water usage. That
methodology is the same billing methodology used by the City of St. Louis Water Division
for their non-metered properties. Multi-family residential and non-residential rates are
proportionate to the single-family charge and are based on water consumption and the
strength of the discharge. During fiscal year 2022, District personnel continued to closely
monitor the impact of COVID-19 on our revenue streams, particularly volume-based
wastewater charges related to commercial customers. Fiscal year 2022 volume based
billing units measured in ccf’s (one hundred cubic feet of water) were approximately
98.5% and 94.4%, respectively, of the amount billed at the end of the District’s fiscal year
2020 and fiscal year 2019. In fiscal year 2022, volume based billing units were 4.3%
higher than fiscal year 2021 levels. This trend indicates that this revenue source is
returning to pre-pandemic levels.
During fiscal 2022 the District’s stormwater system was funded through property taxes
of 1.7¢ per one hundred dollars assessed valuation for stormwater regulatory activities
and 9.0¢ per one hundred dollars assessed valuation for operations and maintenance of
the District’s stormwater utility. The District also performs limited capital improvements
with the revenues generated by the 9.0¢ tax.
Prior to fiscal year 2017, the operation and maintenance of the District’s stormwater
system was funded by a combination of property taxes and a flat fee billing of 24¢ per
month for residential and commercial properties and 18¢ per month per unit for multi-
unit properties. On April 5, 2016, over 62% of voters in MSD’s service area approved
Proposition S which placed all MSD customers under the same property tax rates to fund
stormwater services. The flat fee billings were eliminated.
MSD also receives some federal, state, and local grants to help defray the cost of
constructing sewage treatment and drainage facilities and improvements. The District
also charges fees for plan review, permits, construction inspection of new system
development, and special discharges. The District charges a uniform connection fee in all
service areas.
The District, itself, may issue general obligation bonds and revenue bonds to finance the
cost of improvements and extensions to the sewer system. The District also may issue, on
behalf of each of its subdistricts, general obligation bonds, revenue bonds, or special
assessment bonds.
Major Initiatives Affecting the Financial Resources of the District
Throughout MSD’s service area, there are hundreds of points where a combination of
rainwater and wastewater discharges into local waterways from the wastewater sewer
The Board of Trustees
The Metropolitan St. Louis Sewer District
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system during moderate to heavy rainstorms. These sewer overflow points act as relief
valves when too much rainwater enters the sewer system, and without them, our
community could experience thousands of basement backups and/or extensive street
flooding. (Even with these overflow points, basement backups can easily number in the
dozens or hundreds during particularly heavy rains). Depending on where sewer
overflows are located within MSD’s system, they are classified as combined sewer
overflows or constructed separate sewer overflows. Many of these overflows are a legacy
of the way our wastewater systems were first built. Though most overflows predate the
District’s creation in 1954, they are still MSD’s responsibility and efforts to address the
problem must continue.
Sewer overflows have been a significant focus of MSD’s work for many years. From 1992
to 2012, MSD spent approximately $2.7 billion to eliminate over 380 overflows. Today,
our work to address sewer overflows and improve water quality continues through a
Consent Decree that stems from a lawsuit filed against MSD by the State of Missouri and
the United States Environmental Protection Agency (“EPA”) in June 2007. The State of
Missouri and the EPA were later joined in the lawsuit by the Missouri Coalition for the
Environment.
After lengthy mediation, the EPA announced a settlement agreement in August 2011. On
April 27, 2012, the United States District Court for The Eastern District of Missouri
entered a Consent Decree, thus concluding the litigation. The Consent Decree calls for
more than $6 billion in upgrades to the existing wastewater sewer system (in 2018
dollars). Also known as MSD Project Clear, this work was originally scheduled to take
place over 23 years and addresses our community’s wastewater collection and treatment
capabilities on a system-wide basis. The work is a mammoth undertaking that will benefit
St. Louisans – and our environment – for generations to come.
MSD is about 10 years into the project, a massive effort to upgrade the city’s aging sewer
system by separating areas with combined sewer and stormwater pipes that lead to
discharges of sewage into the Mississippi River and its tributaries.
In the 10 years since the project commenced, MSD has accomplished the following:
Spent $60.8 million on the Cityshed Mitigation Program to mitigate backups
in the sewer system that lead to basement backups and overland flooding.
Spent $30.5 million on a Green Infrastructure Program, which has resulted
in the reduction of an estimated 35.77 million gallons of combined sewer and
stormwater discharges into the Mississippi River watershed.
Continued construction of Maline Creek, Deer Creek, Gravois Creek, and
Jefferson Barracks storage tunnels/facilities; continued planning of Upper
River Des Peres and River Des Peres tributaries storage tunnels; and final
engineering of the Lower and Middle Des Peres storage tunnel.
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The Metropolitan St. Louis Sewer District
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Completed the Coldwater Sanitary Relief storage facility.
Completed the Lemay Treatment Plant primary and secondary treatment
capacity, with additional expansions in progress at the Lower Meramec
Wastewater Treatment Facility.
Eliminated 76 Sanitary Sewer Overflows, areas in the sewer system
designed to discharge combined sewer and stormwater during high rain
events.
Spent $1.6 million on closures of unauthorized sewer connections and septic
tanks.
On June 22, 2018, a United States District Judge approved an amendment to the Consent
Decree that extends the schedule from 23 years to 28 years. Necessary approvals were
also received from the State of Missouri on August 13, 2018. The motivation behind the
amendment is regulatory changes that compel MSD to accelerate certain projects that do
not fall within the scope of the Consent Decree. The time extension will allow MSD to
address new regulatory requirements in a fiscally responsible way, while better
projecting and controlling needed rate increases.
In fiscal year 2022, MSD proposed a modification to the project include replacing two
wastewater storage tunnels (Upper River Des Peres Storage Tunnel and River Des Peres
Tributaries Storage Tunnel) with a single storage tunnel (Upper River Des Peres and
River Des Peres Tributaries Storage Tunnel). This modification will lessen traffic and
reduce construction impacts in the Richmond Heights area, a community already
disproportionately affected by heavy traffic and pollution exposure. The revision will also
reduce the need for purchasing residential properties and easement acquisition, as well
as allowing for easier access in and out of construction areas. The new single tunnel is
anticipated to be fully operational by December 31, 2037. The proposed modification to
the Upper River Des Peres and River Des Peres Tributaries Storage Tunnel represents
good engineering practice. The single tunnel limits the impact on nearby communities,
further improves the environmental benefit, and allows MSD to maintain an acceptable
financial burden for its ratepayers. The U.S. Environmental Protection Agency must
approve the proposed modification.
Section 208 of the Clean Water Act, which was created to meet State water quality
standards throughout the St. Louis area, originally identified the Meramec River as the
region’s number one priority river, deserving protection as a drinking water source and
because it is biologically diverse and contains important habitat.
In fiscal year 2022, MSD amended the 208 Plan to bring it in alignment with the current
situation in the Lower Meramec Basin. The analyses justify the following amendments:
It is more cost-effective to maintain existing facilities ($182M) within the
Lower Meramec System than to construct a single regional Wastewater
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The Metropolitan St. Louis Sewer District
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Treatment Facility (WWTF) ($476M). A single regional WWTF is not
necessary to meet state water quality standards. Therefore, the Lower
Meramec system should instead be served by four WWTFs: Lower Meramec
WWTF, Grand Glaize WWTF, Saline Creek Regional WWTF, and
Kimmswick WWTF.
It is not feasible for the Lower Meramec WWTF to serve as a regional sludge
processing center. The plan now recognizes that sludge processing for MSD
facilities in the Lower Meramec System will be handled at Bissell Point or
Lemay WWTFs; the Northwest Public Sewer District and Rock Creek Public
Sewer District will continue their management activities.
Operations
The Executive Director and his staff administer the operation and maintenance of the
District’s collection and treatment systems. The District’s wastewater, stormwater, and
combined sewer collection system includes approximately 9,400 miles of pipe and channel
and will grow larger over the long term due to new development. Some years may see a
reduction in total miles of pipe. This is due to the replacement of inefficiently placed pipe
with shorter, more direct lines of pipe. The District’s responsibilities for stormwater
drainage range from cleaning and maintaining street inlets to operating and maintaining
the floodwall pump stations along the Mississippi River.
MSD currently operates seven wastewater treatment facilities. These facilities treated
an average flow of 289.5 million gallons per day (“MGD”) in fiscal 2022 compared to 300.6
MGD in fiscal 2021. Flows were lower in fiscal year 2022 due to fewer rain events than
occurred in fiscal 2021. The design capacity and average flow, by watershed, in MGD was
as follows in fiscal 2022:
MAJOR
WATERSHED
LEVEL OF
TREATMENT
NUMBER
OF
FACILITIES
DESIGN
CAPACITY
(MGD)
AVERAGE FLOW
FISCAL 2022
(MGD)
Mississippi River Secondary Two 472.00 214.90
Missouri River Secondary Two 78.00 47.10
Meramec River Secondary Three 42.75 27.50
Total Seven 592.75 289.50
In addition to construction initiated by the District to protect the public’s health and
property from raw sewage and flooding, the District also provides various engineering-
related design review and inspection services for the construction of wastewater and
stormwater sewers by individuals, businesses, and municipalities in the community.
The Board of Trustees
The Metropolitan St. Louis Sewer District
viii
Economic Conditions In The St. Louis Metropolitan Area
As a rule, the District’s major revenue sources do not fluctuate with the local and national
economy as much as local governments that depend on sales or income taxes for their
major sources of revenue. The combined unemployment rate for the City of St. Louis and
St. Louis County was 2.5 percent in June 2022 and lower than the national
unemployment rate of 3.6 percent for the same time period. The June 2022
unemployment rate of 2.5 percent is lower than the June 2021 rate of 5.8 percent due to
the diminishing impact of the COVID-19 pandemic.
MSD has its own internal barometers for measuring economic development within the
District. These are listed below for fiscal 2022 and 2021:
2022 2021
Sewer Plan Reviews:
Number of Plans Approved
446
525
Number of Miles of Sewers 52 44
Sewer Construction Permits:
Number of Permits Issued
2,125
2,130
Number of Miles of Sewers 18 21
Customer Connections:
Number of Connection Permits Issued 1,919 1,621
Connection Fee Revenue (in millions) $1.3 $1.6
Value of Sewers Dedicated to
MSD by Developers (in millions) $13.3 $12.9
Over the years, the St. Louis economy has undergone a transformation from reliance on
traditional manufacturing industries to those industries based on advanced technology
and services. The St. Louis area is a center for health care, biotechnology, banking,
finance, transportation, tourism, and education and has a strong and diverse
manufacturing economy. The area has an abundance of energy, water, and sewerage
facilities and can sustain future economic growth.
Financial Information
Proprietary Operations. The current financial condition of MSD remains stable. The
District realized a net operating income of $159.6 million in fiscal 2022 compared to a net
operating income of $136.7 million the prior year. The increase in net operating income
was driven by a $27.4 million increase in sewer service charges. Sewer charge revenues
grew due to a rate increase that was effective on July 1, 2021 and an increase in customer
usage. Operating expenses increased $8.2 million due primarily to a $4.2 million increase
in general and administrative expenses which consisted of a $3.1 million increase in
The Board of Trustees
The Metropolitan St. Louis Sewer District
ix
Governmental Accounting Standards Board (GASB) Statement No. 68 related pension
expense and a $0.7 million increase in GASB Statement No. 75 Other Post-Employment
Benefits. General and administration expenses were also impacted by an increase in
depreciation expenses of $4.1 million due to additional assets being capitalized. A more
in-depth analysis of the District’s financial position and the magnitude of the capital
improvement and replacement program (“CIRP”) is provided in the Management’s
Discussion and Analysis section that appears later in this report.
Budgetary Controls. The District’s Plan requires MSD to submit a proposed budget to the
Board by March 15th each year. After Board review, a final budget is approved in June.
The District’s Plan also requires MSD to maintain budgetary controls and to adopt a
balanced budget. The objective of these budgetary controls is to ensure compliance with
legal provisions embodied in the appropriation process approved by the Board. The
annual appropriated budget includes activities of the District’s operating and debt service
funds. The Board adopts ordinances to appropriate funds for capital improvement
expenditures at the time of the contract award and acceptance of any grant offers.
Budgetary control is by Division and major expenditure category within the General
Fund, each Debt Service Fund, and each capital improvement contract. The District
utilizes an encumbrance accounting system in conjunction with internal variance and
projection analysis to maintain budgetary control. Certain encumbrances carry over from
one year to the next as approved by the Board during the budget process.
Monthly and year-end financial reports are prepared in accordance with United States
generally accepted accounting principles for Enterprise Funds. Adjustments are made to
the accounting records, where necessary, to reflect the full accrual method of accounting.
Under the full accrual method of accounting, revenues are recognized when earned and
expenses are recorded as liabilities when incurred. Encumbrances and unearned capital
and operating grants are eliminated under the full accrual method of accounting. These
amounts are disclosed as commitments in the notes to financial statements.
Cash Management. In compliance with its Plan, the District invests temporarily idle
funds in cash, cash equivalents and investments such as collateralized certificates of
deposit, collateralized repurchase agreements, obligations of any agency of the United
States, and United States Treasury instruments. The District utilizes competitive
bidding for investment purchases and monitors market conditions daily.
Risk Management. In-house staff and consultants jointly conduct risk management
activities. MSD maintains third-party commercial insurance coverage for various risks
while self-insuring for other risks and liabilities at levels customary for similar
enterprises. The District maintains replacement cost property and casualty insurance
with a policy limit of $1.0 billion on certain facilities and equipment that have an
estimated replacement cost of $934.4 million. The District assumes the risk of loss
The Board of Trustees
The Metropolitan St. Louis Sewer District
x
(including payment of water backup claims to its customers) on most of its underground
pumping facilities and collection system. MSD is one of the few sewer districts in the
country known to provide water backup claim coverage to its customers. To minimize
exposure to loss, the District inspects its facilities regularly and performs preventative
maintenance on them.
MSD maintains automobile, general liability and excess liability insurance. The District
is self-insured for workers’ compensation and funds those costs through annual
appropriations from the District’s general insurance fund. The District maintains
reinsurance for workers’ compensation liabilities in excess of specified limits up to the
statutory limit. Risk control activities include using a third-party claims administrator,
maintaining a computerized claim tracking system, and annually reevaluating workers’
compensation cost. The District also has programs designed to promote safety in the
workplace and employee wellness.
The District provides group medical coverage for its employees and offers dependent
medical coverage on a contributory basis through a self-insured plan. Effective February
1, 2014, the District maintained stop loss coverage for specific claims exceeding $175,000
per year and for total annual claims greater than 125 percent of the annual claims
estimate. The District provides its employees with contributory group dental insurance
coverage and non-contributory life insurance and contributory optional life insurance
coverage. The District also contributes $125 every fiscal year, up to a maximum of $500,
to a vision care program for employees. Effective July 1, 2013, spouses were eligible to use
the benefits; effective July 1, 2016, dependent children up to age 26 were eligible to use
the benefits; however, the amount could not exceed the maximum amount of $500. The
District reevaluates insurance coverage and providers annually by reevaluating medical
insurance claims and health benefit costs.
For most construction projects, insurance is obtained by the individual contractor and
included in the contract price.
Internal Controls. District Management is responsible for designing, establishing, and
maintaining an internal control system that protects District assets from loss, theft, or
misuse and ensures that adequate accounting data is compiled to prepare financial
statements in conformity with United States generally accepted accounting principles.
Internal control systems are designed to provide reasonable, but not absolute, assurance
that these objectives are met. The concept of reasonable assurance recognizes that the
cost of a control should not exceed the benefits likely to be derived and that the evaluation
of costs and benefits requires estimates and judgments by management. The District’s
internal control system is subject to periodic evaluation by Management, the Board and
the District’s independent accountants.
The Board of Trustees
The Metropolitan St. Louis Sewer District
xi
Other Information
Audit Requirements. The District’s Plan requires an annual audit by independent
certified public accountants. The District’s ACFR includes a report on the District’s
financial statements by the accounting firm of CliftonLarsonAllen LLP.
Besides meeting the requirements set forth in the Plan, the annual audit is also designed
to meet the requirements of the 2013 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) that was
issued by the Office of Management and Budget (“OMB”). A Single Audit Report will be
issued for the year ended June 30, 2022.
The financial statements of The Metropolitan St. Louis Sewer District Employees’
Pension Plan, The Metropolitan St. Louis Sewer District Deferred Compensation Plan
and Trust and The Metropolitan St. Louis Sewer District Defined Contribution Plan are
also audited annually. These audit reports were issued for the periods ending December
31, 2021 and 2020 and are available to interested parties upon request.
Awards. The Government Finance Officers Association of the United States and Canada
(“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to
MSD for its ACFR for the fiscal year ended June 30, 2021. The Certificate of Achievement
is a prestigious national award that recognizes conformance with the highest standards
for preparation of state and local government financial reports.
To be awarded the Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized ACFR, the contents of which conform to program
standards. The ACFR must satisfy both U.S. generally accepted accounting principles
and applicable legal requirements. A Certificate of Achievement is valid for one year only.
The District has received a Certificate of Achievement for the last thirty-four consecutive
years. We believe the current ACFR continues to conform to the GFOA’s high standards,
as reflected in the Certificate of Achievement program requirements, and are submitting
it again this year for consideration. The District also received the GFOA’s Distinguished
Budget Presentation award for its fiscal 2022 annual budget. The District has received
this award for thirty-five consecutive years. We believe the fiscal year 2023 budget
presentation continues to meet the GFOA’s high standards and have submitted it for
consideration. The District also received the GFOA’s Award for Outstanding
Achievement in Popular Annual Financial Reporting (“PAFR”) for its fiscal year 2021
PAFR. We have received this award for every year since the publication of our first PAFR
for fiscal year 2012 and intend to submit the fiscal year 2022 PAFR for consideration.
Marion M. Gee
Director of Finance
Page xii
ORGANIZATION
(As of June 30, 2022)
BOARD OF TRUSTEES
Michael Evans, Chair; Amy Fehr, Vice Chair;
Ret. Col. Richard Wilson; Greg Nicozisin; Brian K. Watson; Brian Wahby
OFFICE OF INTERNAL AUDITOR
RATE COMMISSION
Leonard P. Toenjes, Chair
OFFICE OF SECRETARY
TREASURER
Tim R. Snoke
Secretary/Treasurer
CIVIL SERVICE COMMISSION
Rev. Michael F. Jones
Marylynn Sims
Michael Harvey
EXECUTIVE DIRECTOR
Brian L. Hoelscher/CEO
FINANCE
Marion M. Gee
Director
OFFICE OF GENERAL COUNSEL
Susan M. Myers
General Counsel
OPERATIONS
Bret A. Berthold
Director
ENGINEERING
Rich Unverferth
Director
OFFICE OF HUMAN RESOURCES
Tracey Coleman
Director
INFORMATION TECHNOLOGY
Jonathon C. Sprague
Director
Page xiii
Government Finance Officers Association
Certificate Of
Achievement
For Excellence
In Financial
Reporting
Presented to
Metropolitan St. Louis Sewer District
Missouri
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
Financial Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
SERVICE AREAS
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the business-type activities and the
aggregate remaining fund information of The Metropolitan St. Louis Sewer District (the District), as of
and for the years ended June 30, 2022 and 2021 (except for the aggregate remaining fund information,
which is as of and for the years ended December 31, 2021 and 2020), and the related notes to the
financial statements, which collectively comprise the District’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the business-type activities and the aggregate remaining fund
information of The Metropolitan St. Louis Sewer District, as of June 30, 2022 and 2021 (except for the
aggregate remaining fund information, which is as of and for the years ended December 31, 2021 and
2020), and the respective changes in financial position, and, where applicable, cash flows thereof for
the years then ended in accordance with accounting principles generally accepted in the United States
of America.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the District and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the District’s ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
1
Board of Trustees
The Metropolitan St. Louis Sewer District
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
2
Board of Trustees
The Metropolitan St. Louis Sewer District
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of changes in net pension liability and related ratios
for the employees’ pension plan, schedule of employer contributions to employees’ pension plan and
schedule of changes in total OPEB liability be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditors’ report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 28,
2022, on our consideration of The Metropolitan St. Louis Sewer District’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the effectiveness of The Metropolitan St. Louis Sewer District’s internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Metropolitan St. Louis Sewer District’s
internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
St. Louis, Missouri
October 28, 2022
3
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Years Ended June 30, 2022 and 2021
The annual report of The Metropolitan St. Louis Sewer District (“MSD” or the “District”)
includes the independent auditors’ report, management’s discussion and analysis
(“MD&A”), and the financial statements accompanied by notes essential to the user’s
understanding of the financial statements.
Management of the District has provided this MD&A to be used in combination with the
District’s financial statements. This narrative is intended to provide the reader with
more insight into management’s knowledge of the transactions, events, and conditions
reflected in the accompanying financial statements and the fiscal policies that govern the
District’s operations.
2022 Financial Highlights
The District increased net capital assets by $166.2 million as a result of increases
in land ($2.6 million) and depreciable capital assets net of depreciation ($178.3
million) offset by a decrease in construction in progress ($15.1 million).
The District placed $278.6 million of capital assets into service during fiscal year
2022. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $238.8 million
Treatment and disposal plant and equipment $29.2 million
General plant and equipment $7.5 million
Land $2.6 million
Lease Assets $0.5 million
The net increase to accumulated depreciation and amortization was $93.1 million which
takes into consideration the recording of depreciation and amortization relating to new
assets in addition to depreciation and amortization on existing assets offset by the
accumulated depreciation and amortization relieved for assets retired during the year.
During the 2022 fiscal year the District implemented two Governmental Accounting
Standards Board (“GASB”) Statements. See Note 1, Summary of Significant Accounting
Policies, in the accompanying notes to the financial statements for more detailed
information.
2021 Financial Highlights
The District increased capital assets by $231.3 million as a result of increases in
construction in progress ($181.1 million), land ($1.2 million) and depreciable
capital assets net of depreciation ($49.0 million).
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 5
The District placed $142.8 million of capital assets into service during fiscal year
2021. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $120.3 million
Treatment and disposal plant and equipment $14.2 million
General plant and equipment $6.1 million
Land $1.2 million
Lease Assets $1.0 million
The net increase to accumulated depreciation and amortization was $86.9 million which
takes into consideration the recording of depreciation and amortization relating to new
assets in addition to depreciation and amortization on existing assets offset by the
accumulated depreciation and amortization relieved for assets retired during the year.
During the 2021 fiscal year the District implemented three Governmental Accounting
Standards Board (“GASB”) Statements and two Implementation Guides. See Note 1,
Summary of Significant Accounting Policies, in the accompanying notes to the financial
statements for more detailed information.
Required Financial Statements
The basic financial statements presented by the management of the District include the
Statements of Net Position; Statements of Revenues, Expenses, and Changes in Net
Position; Statements of Cash Flows; Statements of Fiduciary Net Position; and
Statements of Changes in Fiduciary Net Position. These statements are prepared using
the accrual basis of accounting in conformity with generally accepted accounting
principles in the United States of America as applied to government units. This method
of accounting recognizes revenue at the time it is earned and expenses when the related
liability occurs. As a result of using this method of accounting, the District’s performance
over the time period being reported is more easily determinable. The District’s basic
financial statements also include the Notes to the Financial Statements and Required
Supplementary Information. In addition, certain statistical supplementary information
is presented for additional analysis but is not a required part of the basic financial
statements.
The District implemented GASB Statement No. 84, Fiduciary Activities (“GASB
Statement No. 84”) in fiscal 2021 and included the financial statements of the District’s
fiduciary activities in conformity with generally accepted accounting principles in the
United States of America. The fiduciary activities of the District include The Metropolitan
St. Louis Sewer District Employees’ Pension Plan (“Pension Plan”).
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 6
The Statements of Net Position provide a report of the District’s current, restricted, and
other non-current assets such as cash, investments, receivables, and capital assets. Also,
the Statements of Net Position provide a summary of the District’s current, restricted,
and non-current liabilities, including contracts and accounts payable, deposits and
accrued expenses, pension and OPEB liabilities and bonds and notes payable. Deferred
outflows and inflows of resources, where applicable, are also included. The final section
of the Statements of Net Position, the net position section, contains earnings retained for
use by the District. Increases or decreases in the net position section may be indicative
of an improving or declining financial position. This statement provides the basis for
computing rate of return, evaluating the capital structure of the District, and assessing
the liquidity and financial flexibility of the District.
The Statements of Revenues, Expenses, and Changes in Net Position summarize the
years’ revenues and expenses. These statements indicate how successful the District was
at maintaining expenses below the level of revenue earned.
The Statements of Cash Flows account for the net change in cash and cash equivalents
by summarizing cash receipts and cash disbursements resulting from operating
activities, non-capital financing activities, capital, and related financing activities, and
investing activities. These statements assist the user in determining the sources of cash
coming into the District, the items for which cash was expended, and the beginning and
ending cash balances.
The Notes to the Financial Statements provide additional information that is essential to
obtain a full understanding of the data provided in the basic financial statements, such
as the District’s significant accounting policies, investment instruments, outstanding
debt, employee benefit plans, segment information and subsequent events to name a few.
The Required Supplementary Information section provides detail in support of the
changes in the net pension liability and the total other postemployment benefits
(“OPEB”) liability and information pertaining to the District’s actuarially determined
contributions to the Pension Plan.
The Statistical Section provides significant data that afford the reader a better historical
perspective and assist in assessing the current financial status and trends of the District
for which ten years of data is generally provided.
Financial Analysis
The District’s financial position improved in the current year, as evidenced by the
increase in net position of $135.6 million. The improvement is due primarily to an
increase in net investment in capital assets, subdistrict construction and improvement
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 7
funds, and unrestricted funds of $108.4 million, $3.7 million, and $29.1 million,
respectively; offset by a decrease in debt service funds of $5.6 million. The increase in
net investment in capital assets net position is comprised of a $166.2 million increase in
net capital assets and a $20.4 million increase in unspent bond proceeds and $8.4 million
in construction-related liabilities and is decreased by a $75.6 million increase in debt
related to capital assets, $8.6 million increase in deferred gain on debt refunding, and the
$2.4 million amortization of deferred losses. The $5.6 million decrease in the debt service
funds net position is due primarily to the $6.8 million cash reserves paid out in fiscal
2022 to current refund certain debt.
Condensed Financial Statements and Analysis
June 30, Increase Increase
June 30, 2021 (Decrease) June 30, (Decrease)
2022 As Restated 2022-2021 2020 2021-2020
Assets:
Current, non-current, restricted, and other assets 879,975$ 831,541$ 48,434$ 787,043$ 44,498$
Capital assets (net of accumulated depreciation)4,245,478 4,079,233 166,245 3,847,889 231,344
Total Assets 5,125,453 4,910,774 214,679 4,634,932 275,842
Deferred Outflows of Resources:
Bonds and notes payable-Deferred loss on refunding 3,069 5,469 (2,400)5,889 (420)
Pension-related outflows 18,477 10,476 8,001 15,673 (5,197)
OPEB-related outflows 4,288 3,537 751 2,843 694
Total Deferred Outflows of Resources 25,834 19,482 6,352 24,405 (4,923)
Liabilities:
Current liabilities 165,921 165,962 (41) 153,611 12,351
Non-current liabilities 1,910,231 1,833,143 77,088 1,722,223 110,920
Total Liabilities 2,076,152 1,999,105 77,047 1,875,834 123,271
Deferred Inflows of Resources:
Bonds and notes payable-Deferred gain on refunding 11,427 2,793 8,634 1,393 1,400
Pension-related inflows 23,194 22,671 523 7,150 15,521
OPEB-related inflows 3,446 3,888 (442) 4,331 (443)
Lease inflows 3,426 3,773 (347) — 3,773
Total Deferred Inflows of Resources 41,493 33,125 8,368 12,874 20,251
Net Position:
Net investment in capital assets 2,407,702 2,299,302 108,400 2,184,736 114,566
Restricted 96,029 97,920 (1,891) 97,034 886
Unrestricted 529,911 500,804 29,107 488,859 11,945
Total Net Position 3,033,642$ 2,898,026$ 135,616$ 2,770,629$ 127,397$
Condensed Statements of Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 8
2022 Analysis
Current, non-current, restricted, and other assets increased $48.4 million or 5.8% in the
current year. The increase is predominately due to an increase in cash and long-term
investments due to increased unspent bond proceeds and more taxes levied and collected.
Capital assets net of accumulated depreciation increased by $166.2 million or 4.1% in the
current year as the result of continued high levels of construction and acquisition of assets
by the District.
Current liabilities decreased by $0.4 million or 0.02% due primarily to an decrease in
contracts and accounts payable and retainage held on capital projects, offset by increase
in current portion of bond and notes payable.
Non-current liabilities increased by $77.0 million or 4.2% primarily due to net increases
in bonds and notes payable, net pension liability and total OPEB liability of $70.4 million,
$4.4 million, and $1.9 million, respectively. The net increase in bonds and notes payable
is related to the $197.3 million new senior and direct placement debt issued in fiscal year
2022 and a net increase of $21.9 million in premiums received in fiscal 2022 on debt
issuances offset by $66.3 million for fiscal 2022 senior and subordinate debt payments
reclassified to current liabilities, $28.4 million current refunding of existing debt, and
$1.6 million amortization of premiums, net of discount.
Net deferred outflows and inflows increased $14.7 million or 28.0% due primarily to
updates to various information provided by the District’s actuary such as
economic/demographic gains or losses, assumption changes or inputs, and investment
gains or losses related to the District’s net pension liability or total OPEB liability.
2021 Analysis
Current, non-current, restricted, and other assets increased $44.5 million or 5.7% in fiscal
year 2021. The increase is predominately due to an increase in investments and cash due
to increased unspent bond proceeds and more taxes levied and collected.
Capital assets net of accumulated depreciation increased by $231.3 million or 6.0% in
fiscal year 2021 as the result of continued high levels of construction and acquisition of
assets by the District.
Current liabilities increased by $12.4 million or 8.0% due primarily to an increase in
contracts and accounts payable, current portion of bond and notes payable and retainage
held on capital projects.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 9
Non-current liabilities increased by $110.9 million or 6.4% primarily due to net increases
in bonds and notes payable, total OPEB liability and deposits and accrued expenses of
$135.1 million, $1.8 million, and $1.6 million, respectively; offset by a decrease in net
pension liability of $28.3 million. The net increase in bonds and notes payable is related
to the $178.6 million new senior and subordinate debt issued in fiscal year 2021 and a
net increase in premiums received on debt issuances of $37.4 million due to premiums on
the fiscal 2021 new debt exceeding the premium retired resulting from the fiscal 2021
direct placement refunding; offset by $61.2 million for fiscal 2022 senior and subordinate
debt payments reclassified to current liabilities, $11.4 million current refunding of
existing debt, $6.4 million amortization of premiums, net of discount, and $1.9 million for
fiscal 2021 senior debt payment reclassified to current liabilities payable on new fiscal
2021 debt.
Net deferred outflows and inflows decreased $21.4 million or 185.6% due primarily to
updates to various information provided by the District’s actuary such as
economic/demographic gains or losses, assumption changes or inputs, and investment
gains or losses related to the District’s net pension liability or total OPEB liability.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 10
For the Fiscal
For the Fiscal Year Ended Increase For the Fiscal Increase
Year Ended June 30, 2021 (Decrease) Year Ended (Decrease)
June 30, 2022 As Restated 2022-2021 June 30, 2020 2021-2020
Operating Revenues:
Sewer service charges 452,645$ 425,248$ 27,397$ 430,398$ (5,150)$
Provision for doubtful sewer
service charge accounts (5,076) (5,347) 271 (5,612) 265
Licenses, permits, and other fees 3,937 3,754 183 3,012 742
Other 6,763 3,497 3,266 10,193 (6,696)
Total Operating Revenues 458,269 427,152 31,117 437,991 (10,839)
Non-operating Revenues:
Property taxes levied by the District 44,480 43,624 856 35,439 8,185
Investment income (loss)(12,514) 1,392 (13,906) 16,259 (14,867)
Rent and other income 439 428 11 302 126
Total Non-operating Revenues 32,405 45,444 (13,039) 52,000 (6,556)
Total Revenues 490,674 472,596 18,078 489,991 (17,395)
Operating Expenses:
Pumping and treatment 65,550 64,475 1,075 62,030 2,445
Collection system maintenance 45,870 48,113 (2,243) 47,652 461
Engineering 11,674 11,501 173 11,628 (127)
General and administrative 59,094 54,868 4,226 65,947 (11,079)
Water backup claims 2,031 3,985 (1,954) 4,653 (668)
Depreciation 95,494 91,352 4,142 87,633 3,719
Lease amortization 158 142 16 — 142
Asset management 18,776 16,024 2,752 17,195 (1,171)
Total Operating Expenses 298,647 290,460 8,186 296,738 (6,277)
Non-operating Expenses:
Net loss on disposal and sale of capital assets 1,523 990 533 962 28
Non-recurring projects and studies 13,243 11,828 1,415 12,458 (630)
Interest expense 56,932 56,622 310 36,119 20,503
Total Non-operating Expenses 71,698 69,440 2,258 49,539 19,901
Total Expenses 370,345 359,900 10,444 346,277 13,623
Income Before Capital
Grants And Contributions 120,329 112,696 7,633 143,714 (31,018)
Capital Grants And Contributions 15,287 14,701 586 6,391 8,310
Change in Net Position 135,616 127,397 8,219 150,105 (22,708)
Net Position - Beginning of Year 2,898,026 2,770,629 127,397 2,620,524 150,105
Net Position - End of Year 3,033,642$ 2,898,026$ 135,616$ 2,770,629$ 127,397$
Statements of Revenues, Expenses, and Changes in Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 11
2022 Analysis
Net position increased $135.6 million or 4.7% over the prior year which was an $8.2
million or 6.4% increase from last year’s net position increase. The largest impacts to net
position were the increase in sewer service charge revenue and the decrease in
investment income.
Total revenue increased by $18.1 million or 3.8% resulting primarily from the increase in
sewer service charges. Other operating revenue increased $3.3 million or 7.3% primarily
due to a lawsuit settlement received on a sewer construction project in fiscal year 2020.
Property taxes increased $0.9 million or 2% due primarily to higher property valuation
assessments and re-instatement of tax rates for several of the stormwater subdistricts.
Investment income decreased $13.9 million or 998.8% primarily due to an $12.3 million
unrealized loss on investments recorded in fiscal 2022.
Total expenses increased by $10.4 million or 2.9% resulting primarily from the increase
in non-recurring projects and studies. Operating expenses increased $8.2 million or 2.8%
with increases in general and administrative, depreciation, asset management, and
pumping and treatment, of $4.2 million, $4.1 million, $2.7 million, and $1.1 million,
respectively; offset by decreases in collection system maintenance of $2.2 or 4.7%, and
water backup claims of $2.0 million or 49.0%. General and administrative increased $4.5
million due to an increase in pension expense based on an actuarial study, $1.2 million
increase in general liability insurance premiums, $1.0 million increase in overall
infrastructure operations, and $0.8 million increase in security invoices. The general and
administrative increases were offset by $2.8 million decrease in accrued vacation in fiscal
2022 compared to fiscal 2021. In fiscal year 2021, District employees began receiving
vacation days as a lump sum versus receiving these days on a prorated basis in prior
fiscal years. Non-operating expenses increased $2.3 million or 3.3% due to increases in
depreciation expense.
Capital grants and contributions increased $0.6 million or 4.0% with the majority of the
increase resulting from capital contributions as the value of capital projects contributed
to the District increased in fiscal 2022.
2021 Analysis
Net position increased $127.4 million or 4.7% over the prior year which was a $22.8
million or 15.2% decrease from fiscal year 2020’s net position increase. The largest
impacts to net position were the decrease in investment income and the increase in
interest expense.
Total revenue decreased by $17.4 million or 3.6% resulting primarily from the decrease
in investment income. Sewer service charges decreased $5.2 million or 1.2% due to the
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 12
impact of the COVID 19 pandemic on commercial customers’ charges. Other operating
revenue decreased $6.7 million or 65.7% primarily due to a lawsuit settlement received
on a sewer construction project in fiscal year 2020. Property taxes increased $8.2 million
or 23.1% due primarily to higher property valuation assessments and re-instatement of
tax rates for several of the stormwater subdistricts. Investment income decreased $14.9
million or 91.4% due to an unrealized loss on investments recorded in fiscal 2021
compared to an unrealized gain recognized in fiscal 2020.
Total expenses increased by $13.6 million or 3.9% resulting primarily from the increase
in interest expense. Operating expenses decreased $6.3 million or 2.1% with decreases in
general and administrative, asset management and water backup claims of $10.9 million,
$1.2 million, and $0.7 million, respectively; offset by increases in depreciation expense of
$3.7 million or 4.2% and pumping and treatment expenses of $2.4 million or 3.9%.
General and administrative decreased primarily due to a decrease in net pension expense
based on the actuarial calculation resulting from favorable market values for pension
assets. Non-operating expenses increased $19.9 million or 40.2% due to a large increase
in interest expense of $20.5 million or 56.7% due to the early implementation in fiscal
2021 of GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of
a Construction Period (“GASB Statement No. 89”) which discontinued the practice of
considering interest costs as one of the ancillary charges necessary to place assets into
their intended location and condition for use. Early implementation of GASB Statement
No. 89 resulted in 100 percent of the interest costs being expensed in fiscal year 2021
compared to approximately 63 percent being expensed in fiscal year 2020.
Capital grants and contributions increased $8.3 million or 130.0% with the majority of
the increase resulting from capital contributions as the value of capital projects
contributed to the District increased in fiscal 2021.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 13
2022 Analysis
The District ended the year with $134.5 million in cash and cash equivalents for an
increase of $12.2 million or 10.0% from the prior year. Cash flows from operating
activities increased by $26.0 million or 12.3% as a result of increased receipts from
customers. Cash flows from non-capital financing activities increased by $1.3 million or
3.0% due to higher taxes receipts. Cash flows from capital and related financing activities
decreased by $12.0 million or 5.7% due primarily to a $47.3 million decrease in bond
proceeds and premiums received in fiscal year 2022 compared to fiscal year 2021, an
increase of $8.0 million in principal, interest and fees paid on bonds due, a decrease of
$1.6 million in capital grant proceeds, and $1.1 million decrease in insurance proceeds,
offset by $45.6 million decrease in spending for capital assets. Cash flows from investing
activities decreased by $28.3 million or 170.4%. The decrease primarily stems from the
fact that the difference between investments maturing decreased $84.9 million while
investments purchased increased $59.2 million in fiscal 2022 compared to fiscal year
2021.
2021 Analysis
The District ended the year with $122.3 million in cash and cash equivalents for an
increase of $25.1 million or 25.9% from the prior year. Cash flows from operating
activities decreased by $6.3 million or 2.9% as a result of decreased receipts from
customers and increased payments to employees for services and to suppliers for goods
and services. Cash flows from non-capital financing activities increased by $7.7 million
For the Fiscal For the Fiscal Increase For the Fiscal Increase
Year Ended Year Ended (Decrease) Year Ended (Decrease)
June 30, 2022 June 30, 2021 2022-2021 June 30, 2020 2021-2020
Cash flows from operating
activities 236,671$ 210,674$ 25,997$ 216,970$ (6,296)$
Cash flows from non-capital
financing activities 43,983 42,689 1,294 34,983 7,706
Cash flows from capital
and related financing
activities (223,610) (211,637) (11,973) (305,361) 93,724
Cash flows from investing
activities (44,855) (16,586) (28,269) 93,779 (110,365)
Net increase (decrease) in
cash and cash equivalents 12,188 25,140 (12,952) 40,371 (15,231)
Cash and cash equivalents
at beginning of year 122,265 97,125 25,140 56,754 40,371
Cash And Cash Equivalents
At End Of Year 134,453$ 122,265$ 12,188$ 97,125$ 25,140$
Condensed Statements of Cash Flows
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 14
or 22.0% due to higher taxes receipts. Cash flows from capital and related financing
activities increased by $93.7 million or 30.7% due primarily to a $99.2 million increase in
bond proceeds and premiums received in fiscal year 2021 compared to fiscal year 2020, a
decrease of $16.2 million in principal, interest and fees paid on bonds due primarily to
the $26.0 million debt service reserves paid out to advance refund debt in fiscal 2020
compared to the $4.0 million paid out in fiscal 2021 to current refund debt, and increases
of $2.4 million in capital grant proceeds and $1.1 million in insurance proceeds; offset by
a $25.2 million increase in spending for capital assets. Cash flows from investing
activities decreased by $110.4 million or 117.7%. The decrease primarily stems from the
fact that the difference between investments maturing decreased $69.1 million while
investments purchased increased $40.5 million in fiscal 2021 compared to fiscal year
2020.
Capital Assets
2022 Analysis
Total capital assets, net of accumulated depreciation, increased by $166.2 million or 4.1%
over the prior year. Collection and pumping plant assets contained the majority of the
increase with net additions of $184.4 million or 8.5%, primarily for capitalization of assets
including new and improved sewers, dedicated assets, and infrastructure repairs. Land
increased $2.6 million or 3.3% due to the acquisition of easements and other land, general
plant and equipment increased $2.8 million or 11.5%, and lease assets increased $0.4
million or 40.1%. These increases are offset by construction in progress decrease of $15.1
million or 1.3% and net treatment and disposal plant and equipment decrease of $8.8
million or 1.4% due to no large projects being capitalized in fiscal 2022 to offset the
June 30, Increase Increase
June 30, 2021 (Decrease) June 30, (Decrease)
2022 As Restated 2022-2021 2020 2021-2020
Land 82,206$ 79,569$ 2,637$ 78,334$ 1,235$
Construction in progress 1,178,891 1,194,033 (15,143) 1,012,926 181,107
Treatment and disposal plant
and equipment 608,440 617,238 (8,798) 638,730 (21,492)
Collection and pumping plant 2,347,735 2,163,327 184,408 2,094,866 68,461
Lease right of use asset 1,248 891 357 — 891
General plant and equipment 26,958 24,175 2,783 23,033 1,142
Total 4,245,478$ 4,079,233$ 166,245 3,847,889$ 231,344$
Condensed Statements of Capital Assets
Net of Depreciation
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 15
depreciation charge for the year. For more detailed information, see Note 4, Capital
Assets, in the accompanying notes to the financial statements.
2021 Analysis
Total capital assets, net of accumulated depreciation, increased by $166.2 million or 4.1%
over the prior year. Collection and pumping plant assets contained the majority of the
increase with net additions of $184.4 million or 8.5%, primarily for capitalization of assets
including new and improved sewers, dedicated assets, and infrastructure repairs. Land
increased $2.6 million or 3.3% due to the acquisition of easements and other land, general
plant and equipment increased $2.8 million or 11.5%, and lease assets increased $0.4
million or 40.1%. These increases are offset by construction in progress decrease of $15.1
million or 1.3% and net treatment and disposal plant and equipment decrease of $8.8
million or 1.4% due to no large projects being capitalized in fiscal 2022 to offset the
depreciation charge for the year. For more detailed information, see Note 4, Capital
Assets, in the accompanying notes to the financial statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 16
Long-Term Debt
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 17
2022 Analysis
The District ended fiscal year 2022 with $1.7 billion in long-term debt outstanding. The
District had one senior revenue bond addition this year, Series 2022B, totaling $109.1
million and one senior refunding revenue bond direct placement addition, Series 2022A,
totaling $39.8 million. 2022A was used to refund $31.3 million of the Series 2012A senior
revenue bond and $23.5 million of the Series 2012B senior revenue bond. 2022B was
used to refund $9.3 million of senior revenue bond 2012B. The District also received $0.3
million, and $1.9 million, $10.9 million, $15.5 million, and $19.2 million in loan proceeds
from the Series 2018B, Series 2019A, Series 2020A, Series 2021A, and Series 2021B
Missouri Department of Natural Resources bonds, respectively. Total principal
payments of $51.8 million, excluding the refunding referenced above, reduced
outstanding debt in fiscal year 2022. For more detailed information, see Note 7, Long-
Term Liabilities, in the accompanying notes to the financial statements.
2021 Analysis
The District ended fiscal year 2021 with $1.7 billion in long-term debt outstanding. The
District had one senior revenue bond addition this year, Series 2020B, totaling $120.0
million and one senior refunding revenue bond direct placement addition, Series 2021C,
totaling $5.6 million which was used to refund $11.4 million of the Series 2011B senior
revenue bond. These amounts represent new borrowings and do not reflect the principal
payment made in fiscal 2021 on Series 2020B. In addition, the District added three new
Missouri Department of Natural Resources bonds, Series 2020A, 2021A and 2021B,
totaling $10.0 million, $5.3 million and $7.3 million, respectively. The District also
received $0.7 million, $7.9 million, $6.1 million, and $15.7 million in loan proceeds from
the Series 2016A, Series 2016B, Series 2018B, and Series 2019A Missouri Department of
Natural Resources bonds, respectively. These amounts represent new borrowings and do
not reflect the principal payments made in fiscal 2021 on Series 2016A and Series 2016B.
Total principal payments of $58.6 million, excluding the refunding referenced above,
reduced outstanding debt in fiscal year 2021. For more detailed information, see Note 7,
Long-Term Liabilities, in the accompanying notes to the financial statements.
Decisions Impacting the Future
Integral to helping MSD’s rate payers understand the District’s Consent Decree (“CD”)
with the U.S. Environmental Protection Agency, the State of Missouri, and the Missouri
Coalition for the Environment, which settled a lawsuit for alleged violations of the Clean
Water Act, was the initiation of MSD Project Clear. See Note 15, Commitments and
Contingencies, for additional information regarding this litigation. The goal of MSD
Project Clear is to help MSD’s rate payers have a clear understanding of MSD’s goals and
objectives. MSD Project Clear consists of three main components:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 18
Getting the Rain Out which is focused on reducing excess stormwater from
entering the sewer system infrastructure to help reduce basement back-ups and
overflows;
Performing Repair and Maintenance to the existing infrastructure to ensure it
operates as well as possible for as long as possible; and
Building System Improvements where needed to increase the capacity of
the system.
MSD Project Clear will greatly affect the daily lives of many of our rate payers and is
needed to help the rate payer understand the individual and regional, as well as the
immediate and long-term, benefits of the program.
Since February 2004, the voters in the District’s service area have authorized the District
to issue a total of $3.1 billion in wastewater revenue bonds. As of June 30, 2022, the
District has issued $2.4 billion of the total authorization. The District’s long-term
wastewater capital improvement program will continue to be funded through a
combination of additional bonds and wastewater rate increases.
Requests for Information
This financial report is designed to provide a general overview of the District’s finances
for all those with an interest in the District’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should
be addressed or e-mailed to:
Marion M. Gee, Director of Finance
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
mgee@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.
Page 19
STATEMENTS OF NET POSITION
Continued on Next Page
June 30,
2022 2021
Assets As restated
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 64,845,757$ 91,337,843$
Investments 187,145,188 210,940,744
Sewer service charges receivable, less allowance of $75,304,317 in 2022 and
$70,666,08 in 2021 69,517,193 66,387,300
Unbilled sewer service charges receivable 36,419,844 34,970,247
Property taxes receivable, less allowance of $6,023 in 2022 and $7,430 in 2021 294,552 363,496
Accrued income on investments 1,067,364 1,434,887
Other receivables, less allowance of $54,456 in 2022 and $60,373 in 2021 2,814,607 2,623,352
Supplies inventory 8,923,100 8,475,419
Total Unrestricted Current Assets 371,027,605 416,533,288
Restricted Current Assets
Cash and cash equivalents 2,978,669 4,629,689
Investments 9,896,863 12,587,475
Other receivables 28,747 43,590
Total Restricted Current Assets 12,904,279 17,260,754
Total Current Assets 383,931,884 433,794,042
Non-Current Assets
Restricted Assets
Cash and cash equivalents 66,628,666 26,297,303
Investments 98,773,850 125,637,074
Long-term investments 41,824,592 32,199,117
Property taxes receivable, less allowance of $35,016 in 2022 and $36,447 in 2021 1,680,621 1,750,616
Accrued income on investments 165,274 169,177
Total Restricted Non-Current Assets 209,073,003 186,053,287
Other Assets
Notes receivable 8,947,222 9,694,702
Long-term investments 274,713,717 198,404,102
Other Receivables - Non Current (Leases) 3,308,705 3,594,566
Total Other Assets 286,969,644 211,693,370
Capital Assets
Depreciable:
Treatment and disposal plant and equipment 1,332,498,020 1,303,648,712
Collection and pumping plant 3,329,457,199 3,093,068,764
General plant and equipment 109,585,527 103,516,644
Lease right of use asset 1,548,555 1,032,853
4,773,089,301 4,501,266,973
Less: Accumulated depreciation 1,788,407,446 1,695,494,536
Less: Accumulated amortization 300,309 142,204
Net depreciable assets 2,984,381,546 2,805,630,233
Non-depreciable:
Land 82,205,848 79,569,310
Construction in progress 1,178,890,914 1,194,033,440
Net Capital Assets 4,245,478,308 4,079,232,983
Total Non-Current Assets 4,741,520,955 4,476,979,640
Total Assets 5,125,452,839 4,910,773,682
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.
Page 20
STATEMENTS OF NET POSITION (Continued)
June 30,
2022 2021
As restated
Deferred Outflows of Resources
Bonds and notes payable-Deferred loss on refunding 3,068,689 5,469,323
Pension-related outflows 18,476,825 10,476,420
OPEB-related outflows 4,288,181 3,536,916
Total Deferred Outflows of Resources 25,833,695 19,482,659
Liabilities
Current Liabilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 36,703,337$ 40,797,900$
Lease liability 238,285 140,182
Deposits and accrued expenses 42,765,410 42,276,571
Retainage payable 18,224,079 20,326,492
Current portion of bonds and notes payable 66,337,500 61,157,300
Total Current Liabilities-Payable From Unrestricted Assets 164,268,611 164,698,445
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 828,414 702,175
Retainage payable 824,282 561,310
Total Current Liabilities-Payable From Restricted Assets 1,652,696 1,263,485
Total Current Liabilities 165,921,307 165,961,930
Non-Current Liabilities
Deposits and accrued expenses 9,375,268 9,202,567
Net pension liability 33,871,056 29,495,178
Lease liability 1,007,232 755,991
Total OPEB liability 26,793,582 24,920,628
Bonds and notes payable 1,839,184,214 1,768,769,051
Total Non-Current Liabilities 1,910,231,352 1,833,143,415
Total Liabilities 2,076,152,659 1,999,105,345
Deferred Inflows of Resources
Bonds and notes payable-Deferred gain on refunding 11,427,026 2,793,162
Pension-related inflows 23,194,024 22,671,398
OPEB-related inflows 3,445,503 3,888,085
Lease Inflows 3,425,569 3,772,962
Total Deferred Inflows of Resources 41,492,122 33,125,607
Net Position
Net investment in capital assets 2,407,701,626 2,299,301,587
Restricted for:
Debt service 24,146,279 29,706,793
Subdistrict construction and improvement 71,883,165 68,212,821
Unrestricted 529,910,683 500,804,188
Total Net Position 3,033,641,753$ 2,898,025,389$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 21
STATEMENTS OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
2022 2021
As restated
Operating Revenues
Sewer service charges 452,645,091$ 425,247,783$
Provision for doubtful sewer service charge accounts (5,076,402) (5,347,419)
Licenses, permits and other fees 3,937,368 3,753,797
Other 6,763,143 3,497,401
Total Operating Revenues 458,269,200 427,151,562
Operating Expenses
Pumping and treatment 65,549,965 64,475,064
Collection system maintenance 45,869,500 48,112,996
Engineering 11,674,101 11,500,796
General and administrative 59,094,744 54,869,068
Water backup claims 2,030,765 3,984,849
Depreciation 95,494,079 91,352,269
Lease amortization 158,105 142,204
Asset management 18,776,087 16,023,983
Total Operating Expenses 298,647,346 290,461,229
Operating Income 159,621,854 136,690,333
Non-Operating Revenues
Property taxes levied by the District 44,479,669 43,624,302
Investment income (loss) (12,513,973) 1,392,278
Rent and other income 439,491 428,384
Total Non-Operating Revenues 32,405,187 45,444,964
Non-Operating Expenses
Net loss on disposal and sale of capital assets 1,523,315 990,108
Non-recurring projects and studies 13,243,184 11,827,723
Interest expense 56,931,596 56,622,132
Total Non-Operating Expenses 71,698,095 69,439,963
Income Before Capital Grants And Contributions 120,328,946 112,695,334
Capital Grants And Contributions
Capital assets contributed 13,349,472 12,943,095
Grant revenue 1,937,946 1,758,069
Total Capital Grants And Contributions 15,287,418 14,701,164
Change In Net Position 135,616,364 127,396,498
Net Position - Beginning Of Year, as restated 2,898,025,389 2,770,628,891
Net Position - End Of Year 3,033,641,753$ 2,898,025,389$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 22
STATEMENTS OF CASH FLOWS
2022 2021
As restated
Cash Flows From Operating Activities
Received from customers 452,184,440$ 425,929,012$
Paid to employees for services (105,607,408) (105,930,520)
Paid to suppliers for goods and services (109,906,382) (109,324,477)
Net Cash Provided By Operating Activities 236,670,650 210,674,015
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 43,982,614 42,688,546
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 1,944,266 3,537,577
Proceeds from issuance of debt 148,531,457 172,012,156
Premium on sale of bonds 13,362,572 37,194,201
Principal paid on debt (67,915,074) (62,599,880)
Interest and fees paid on debt (65,442,437) (62,785,703)
Payments for capital assets (257,484,786) (303,040,026)
Proceeds from sale of capital assets 174,195 158,652
Proceeds received from other organization for their contribution to
construction of treatment plant 1,576,500 1,154,696
Proceeds from insurance on destroyed capital assets — 1,088,835
Build America Bond tax credit 1,642,857 1,642,857
Net Cash (Used In) Capital And Related
Financing Activities (223,610,450) (211,636,635)
Cash Flows From Investing Activities
Purchase of investments (574,463,863) (633,675,492)
Proceeds from sale and maturity of investments 521,629,000 606,554,500
Investment income 7,667,949 10,297,068
Proceeds from rents 312,357 238,122
Net Cash Provided By (Used In) Investing Activities (44,854,557) (16,585,802)
Net Increase In Cash And Cash Equivalents 12,188,257 25,140,124
Cash And Cash Equivalents At Beginning Of Year 122,264,835 97,124,711
Cash And Cash Equivalents At End Of Year 134,453,092$ 122,264,835$
Statements of Net Position Classification
Current Assets - Unrestricted Cash and cash equivalents 64,845,757$ 91,337,843$
Current Assets - Restricted Cash and cash equivalents 2,978,669 4,629,689
Non-Current Assets - Restricted Cash and cash equivalents 66,628,666 26,297,303
Statements of Net Position Total Cash And Cash Equivalents 134,453,092$ 122,264,835$
Non-Cash Capital And Investing Activities
Net proceeds from debt issuance placed into escrow to refund bonds 57,528,822$ 7,371,752$
Principal amount reduced and placed in escrow and related
deferred loss/gain and premium (57,939,536) (7,371,752)
Proceeds from debt issuance used to pay underwriters directly 388,277 932,589
Capital asset additions included in accounts payable 18,069,169 23,958,166
Capital assets contributed by other governments and developers 13,349,472 12,943,095
Fair value investment adjustment (gain) loss 20,249,148 7,406,329
Grant revenue (expense)479,585 288,446
For The Years
Ended June 30,
Continued on Next Page
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 23
STATEMENTS OF CASH FLOWS (Continued)
2022 2021
As restated
Reconciliation Of Operating Income To Net Cash Flows
Provided By Operating Activities
Operating Income 159,621,854$ 136,690,333$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 95,494,079 91,494,473
Non-recurring projects and studies (13,243,184) (11,827,723)
Tax commission fees 642,255 637,362
Change in operating assets and liabilities:
(Increase) in billed and unbilled sewer service
charges receivable (4,579,490) (516,584)
Decrease in other receivables (115,378) (3,839,928)
Decrease (increase) in supplies inventory (447,681) (461,822)
Decrease in pension-related outflows (8,000,405) 5,197,232
(Increase) in OPEB-related outflows (751,265) (694,047)
(Decrease) increase in contracts and accounts payable 1,244,071 693,426
(Decrease) increase in deposits and accrued expenses 824,311 990,938
(Decrease) in net pension liability 4,375,878 (28,297,735)
(Decrease) increase in total OPEB liability 1,872,954 1,756,010
Increase in pension-related inflows 522,626 15,521,700
(Decrease) increase in OPEB-related inflows (442,582) (442,582)
(Decrease) increase in Lease-related inflows (347,393) 3,772,962
Net Cash Provided By Operating Activities 236,670,650$ 210,674,015$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 24
STATEMENTS OF FIDUCIARY NET POSITION
EMPLOYEES’ PENSION PLAN
2021 2020
Assets
Investments at Fair Value:
Collective Investment Funds 185,031,152$ 171,767,753$
Mutual Funds 62,608,137 60,179,174
Real Estate Investments 29,021,383 30,265,219
Corporate Obligations 27,025,796 27,630,867
Domestic Common Stocks 21,934,156 18,552,256
US Treasury and Agency Obligations 19,727,449 13,994,724
Money Market Funds 3,666,492 3,237,837
Municipal Obligations 1,370,872 1,292,527
Total Investments 350,385,437 326,920,357
Receivables
Interest and Dividends Receivable 237,314 236,729
Total Receivables 237,314 236,729
Total Assets 350,622,751 327,157,086
Liabilities
Accrued Expenses 248,908 244,402
Total Liabilities 248,908 244,402
Fiduciary Net Position Restricted for Pension Benefits 350,373,843$ 326,912,684$
December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 25
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
EMPLOYEES’ PENSION PLAN
2021 2020
Additions to Fiduciary Net Position Attributed to:
Investment Income:
Net Appreciation in Fair Value of Investments 28,693,382$ 32,083,437$
Interest and Dividends 4,440,589 5,514,283
Total Investment Income 33,133,971 37,597,720
Less - Investment Managers' and Advisors' Fees 1,051,185 922,422
Net Investment Income 32,082,786 36,675,298
Employer Contributions 12,159,284 13,416,065
Total Additions 44,242,070 50,091,363
Deductions from Fiduciary Net Position Attributed to:
Benefits Paid to Retirees and Beneficiaries 20,665,530 19,273,097
Administrative Expenses 115,381 108,229
Total Deductions 20,780,911 19,381,326
Net Increase 23,461,159 30,710,037
Fiduciary Net Position Restricted for
Pension Benefits, January 1 326,912,684 296,202,647
Fiduciary Net Position Restricted for
Pension Benefits, December 31 350,373,843$ 326,912,684$
For the Years
Ended December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 26
NOTES TO FINANCIAL STATEMENTS
June 30, 2022 AND 2021
1. Summary of Significant Accounting Policies
Organization
The Metropolitan St. Louis Sewer District (“District”) was authorized by the
voters, established and chartered under Article VI, Section 30 of the Constitution
of Missouri as a municipal corporation and a political subdivision of the State of
Missouri. Upon creation in 1954, the District assumed responsibilities to provide
for the construction, operation, and maintenance of the sewer facilities within its
defined boundaries. The District’s service area now comprises all of the City of St.
Louis and most of St. Louis County. Subdistricts within the District’s total service
area represent separate geographic areas within which specific taxes can be levied
to operate and maintain wastewater or stormwater facilities within the area or
construct improvements within the subdistrict. The District also maintains all of
the publicly owned stormwater sewers within its original boundaries and is
continuing to accept maintenance of the stormwater sewers in the remainder of its
service area.
Pursuant to provisions of its Charter and subject to limitations imposed by the
Constitution of Missouri, all powers of the District are vested in a six-member
Board of Trustees (“Board”), three of whom are appointed by the Mayor of the City
of St. Louis and three of whom are appointed by the County Executive of St. Louis
County. Not more than two Trustees appointed from said City or County, as the
case may be, shall be a member of the same political party.
Reporting Entity
The District defines its financial reporting entity to include all component units
for which the District’s governing body is financially accountable. To be considered
financially accountable, the component unit must be fiscally dependent on the
District and the District must either 1) be able to impose its will on the component
unit or 2) the relationship must have the potential for creating a financial benefit
or imposing a financial burden on the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 27
The District sponsors a single employer defined benefit pension plan and trust for
which the District contributes the actuarially determined contribution each year.
Pursuant to the adoption in fiscal year 2021 of Statement No. 84 of the
Governmental Accounting Standards Board, Fiduciary Activities, it was
determined that the defined benefit pension plan and trust qualifies as a fiduciary
component unit that meets the criteria of a fiduciary activity and the Statements
of Fiduciary Net Position and the Statements of Changes in Fiduciary Net Position
for The Metropolitan St. Louis Sewer District Employees’ Pension Plan are
presented following the District’s basic financial statements. The District issues a
publicly available report for the defined benefit pension plan and trust with
audited financial statements that is available upon request and is also available
on the District’s msdprojectclear.org website. While included in the separately
issued report, the Cash and Investments and the Fair Value Measurement and
Application note disclosures for the fiduciary activity are presented herein as
Notes 9 and 10.
Based on the foregoing, the District’s financial statements include all funds that
are established under the authority of the District’s charter. There are no agencies,
boards, commissions, or authorities that are controlled by or dependent on the
District.
Measurement Focus, Basis of Accounting and Financial Statement
Presentation
The Governmental Accounting Standards Board (“GASB”) is the accepted
standard-setting body for establishing accounting and financial reporting
standards for U.S. state and local governments that follow generally accepted
accounting principles (“GAAP”). As a political subdivision of the State of Missouri,
the District follows GASB Pronouncements.
Throughout the year, the District maintains its detailed accounting records on a
modified accrual basis of accounting. In order to account for the transactions
related to certain subdistricts and restricted resources, separate fund accounting
records are maintained. For financial reporting purposes, the District reports its
operations as a single enterprise fund and the financial statements are prepared
in conformity with accounting principles generally accepted in the United States
of America as applied to government units. Accordingly, the accounting records are
converted to the accrual basis of accounting and all interfund transactions are
eliminated. The District’s fiduciary financial statements are also presented in
conformity with accounting principles generally accepted in the United States of
America on an accrual basis of accounting. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recognized when the
related liability is incurred. The District’s measurement focus for both the basic
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 28
financial statements and the financial statements of the District’s fiduciary
activity is on the flow of economic resources.
Revenues and expenses are divided into operating and non-operating items.
Operating revenues generally result from providing services in connection with the
District’s principal ongoing operations. The principal operating revenues of the
District are user fees, licenses, and permits for wastewater treatment services.
Operating expenses include the costs associated with the conveyance and
treatment of wastewater and stormwater, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting these
definitions are reported as non-operating revenues and expenses. Non-recurring
projects and studies (shown as non-operating expenses) consist of expenses related
to unusual charges or losses that are unlikely to occur again in the formal course
of business such as work related to federally declared disasters, projects originally
intended to be capitalized that changed scope when a decision was made to no
longer build an asset, and any non-reimbursed work performed on assets not
owned or maintained by the District but is necessary to protect District owned
assets or to mitigate a threat to the health and safety of the general public.
The District follows GASB Statement No. 33, Accounting and Financial Reporting
for Nonexchange Transactions, which establishes accounting and financial
reporting standards for nonexchange transactions involving financial or capital
resources. GASB Statement No. 33 groups nonexchange transactions into the
following four classes, based upon their principal characteristics: derived tax
revenues, imposed nonexchange revenues, government-mandated nonexchange
transactions, and voluntary nonexchange transactions.
The District recognizes assets from imposed nonexchange revenue transactions in the
period when an enforceable legal claim to the assets arises or when the resources are
received, whichever occurs first. Revenues are recognized in the period when the
resources are required to be used for the first period that use is permitted. The District
recognizes revenues from property taxes, net of estimated refunds and estimated
uncollectible amounts, in the period for which the taxes are levied. Imposed
nonexchange revenues also include licenses, permits, and other fees.
Intergovernmental revenues, representing grants and assistance received from
other governmental units, are generally recognized as revenues in the period when
all eligibility requirements, as defined by GASB Statement No. 33, have been met.
Any resources received where all requirements are met with the exception of the
time requirement are recorded as deferred inflows. All other resources received
before any other eligibility requirements are met are reported as unearned
revenues.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 29
Cash and Cash Equivalents
The District considers highly liquid investments that have original maturity of less
than 91 days to the District to be Cash Equivalents.
Investments
The District accounts for its investments at fair value. The District categorizes its
fair value measurements within the fair value hierarchy established by generally
accepted accounting principles pursuant to GASB Statement No. 72, Fair Value
Measurement and Application. The hierarchy is based on the valuation inputs used
to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. Changes in unrealized gain
(loss) on the carrying value of investments are reported as a component of
investment income in the Statements of Revenues, Expenses and Changes in Net
Position.
Restricted Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments that are externally restricted are
classified as restricted assets. These assets are used to make debt service
payments, maintain sinking or reserve funds, purchase or construct capital or
other non-current assets or for other restricted purposes.
Accounts Receivable
Accounts receivable is composed primarily of charges to customers for wastewater
services. Accounts are considered past due 30 days from the invoice date.
Receivables are reported at their gross values net of an allowance for uncollectible
amounts. This allowance for uncollectible amounts is based on historical collection
experience. Throughout the fiscal year unbilled sewer service charge revenues are
accrued by the District based on estimated billings for services provided and then
actual unbilled sewer service charge revenue is accrued at the end of the fiscal year
as all ratepayers are billed in the following month for the previous calendar
month’s services with the billings spread over twenty-three different billing cycles.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 30
Capital Assets
Acquired capital assets are recorded at historical cost on the acquisition date. In
accordance with GASB Statement No. 72, donated capital assets are recorded at
their estimated acquisition value at the acquisition date. Depreciation is calculated
on a straight-line basis over the following estimated useful lives:
When developing user charge rates, the District includes funding for replacement
cost of assets, which may differ from depreciation expense recorded for financial
reporting purposes.
Normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Betterments are capitalized and
depreciated over the remaining useful lives of the related assets, as applicable. The
District defines capital assets as assets with an initial, individual cost between
$5,000 and $15,000, depending on the asset category, and an estimated useful life
of at least three years. At the time of retirement or disposal of capital assets, the
related cost and accumulated depreciation are removed from the accounts and the
resulting net gain or loss on disposal and sale of capital assets is reflected in non-
operating expenses.
Costs incurred for capital construction and acquisition are carried in construction
in progress until completion of the related projects. The major components of
construction in progress are the costs incurred to construct new tunnels, storage
facilities and sewer lines, rehabilitate and separate existing sewer lines, and to
make improvements to pump stations and treatment plants. Costs related to
projects not pursued are expensed when terminated.
Supplies Inventory
Supplies inventory consists of parts and supplies to be used to operate and
maintain treatment facilities and various treatment-related equipment at the
District. This inventory figure is netted against those materials and supplies
deemed to be potentially obsolete. All inventory is stated at weighted average cost
and expenses are recognized when the inventory is consumed.
Class of Assets
Useful Life
in years
Buildings (recorded within other categories) 20 to 50
Collection System 20 to 100
Pumping System 5 to 50
Treatment & Disposal Plant 5 to 50
Vehicles 7 to 10
General Support Equipment & Furniture 3 to 10
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 31
Net Position
One component of the District’s net position is the net investment in capital assets
which consists of capital assets, net of accumulated depreciation, reduced by the
net outstanding debt and construction-related liabilities, including premiums and
discounts on such debt, which is attributable to the acquisition, construction, or
improvement of those assets. The outstanding debt is net of the cash and
investments from the debt that has not yet been expended. Deferred gains and
losses on refundings are also included in the net investment in capital assets net
position.
The restricted component of net position consists of assets and liabilities regulated
by external constraints imposed by creditors, grantors, contributors, laws, or
regulations of other governments or constraints imposed by law through
constitutional provisions or enabling legislation. Property taxes levied by the
various subdistricts and other revenues received for construction in those sub-
districts have also been restricted for that use. Sewer extension and connection
fees, grants, and other revenues received for construction within certain sub-
districts have been restricted for that use. In addition, a portion of wastewater
sewer charges have been restricted for the payment of principal and interest,
including accrued interest, on outstanding debt of the District.
The unrestricted net position component of net position consists of net position that
does not meet the definition of restricted or net investment in capital assets. The
District first applies restricted resources when an expense is incurred for purposes
for which both restricted and unrestricted net position is available.
Deferred Outflows of Resources and Deferred Inflows of Resources
In addition to assets, financial statements may report a separate section for
deferred outflows of resources. Deferred outflows of resources consist of the
consumption of net position that is applicable to a future reporting period and so
will not be recognized as an outflow of resources until then. Deferred outflows of
resources related to refunding long-term debt is reported in the Statements of Net
Position. A deferred bond refunding amount results from the difference in the
carrying value of refunded debt and its reacquisition price which is amortized over
the shorter of the life of the refunded or refunding debt. The pension related
deferred outflows of resources represent contributions made to the plan between
the measurement date of the pension liability and the beginning of the next fiscal
year as well as certain actuarial differences and changes that are amortized over
future periods. The other postemployment benefit (“OPEB”) related deferred
outflows of resources represent benefit payments made between the measurement
date of the total OPEB liability and the beginning of the fiscal year following the
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 32
measurement date and certain actuarial differences and changes that are
amortized over future periods.
In addition to liabilities, financial statements may report a separate section for
deferred inflows of resources. Deferred inflows of resources consist of the
acquisition of net position that is applicable to a future reporting period and so will
not be recognized as an inflow of resources until then. Deferred inflows of resources
related to refunding long-term debt is also reported in the Statements of Net
Position due to the recognition of a deferred gain resulting from the difference in
the carrying value of refunded debt and its reacquisition price and this gain is
amortized over the shorter of the life of the refunded or refunding debt. The District
also has deferred inflows of resources related to certain changes in pension, leases
and OPEB obligations that are amortized over future periods.
Lease-related amounts are recognized at the inception of leases in which the
District is the lessor. The deferred inflow of resources is recorded in an amount
equal to the corresponding lease receivable plus certain ancillary amounts received
from the lessee at or before the commencement of the lease term that relate to
future periods, less any lease incentives paid to, or on behalf of, the lessee at or
before the commencement of the lease term. Subsequently, the deferred inflow of
resources is recognized as revenue over the life of the lease term.
Capital Contributions
Capital contributions to the District represent government grants and other aid
used to fund capital projects and are reported at their estimated acquisition value.
In accordance with GASB Statement No. 33, capital contributions are recognized
as revenue when the expenditure is made and the amount becomes subject to claim
for reimbursement.
Bonds, Bond Premiums, Discounts and Issuance Costs
Bonds and notes payable are recorded at the principal amount outstanding and
are reported net of any applicable bond premium or discount. In the District’s
financial statements, bond premiums and discounts are amortized over the life of
the bonds using the effective interest method. Bond issuance costs are expensed
when incurred pursuant to GASB Statement No. 65, Items Previously Reported as
Assets and Liabilities.
Bonds which have been advance refunded and in substance defeased are not
included in long-term debt and the related assets deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the
refunded debt are not included in investments.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 33
Compensated Absences
Vacation
Under the terms of the District’s personnel policies, employees are allowed to carry
a maximum of 30 to 45 days of vacation (depending on length of service) from one
calendar year to the next. Since vacation remaining at year-end is expected to be
used by the employee during the following fiscal year, the value is reported as a
component of current deposits and accrued expenses payable.
Sick Leave
Employees earn sick pay benefits ranging from 10 days per year to 12 days per
year (depending on length of service). Unused sick leave can be carried over at
year-end without limitation. An employee retiring or an employee who dies while
in active service with five or more years of service with the District, will be
compensated for any unused accrued sick leave at the rate of 1.25% for each year
of District service multiplied by the unused accrued sick leave remaining at the
employee’s current rate of pay up to a maximum of $50,000. The District has
recorded a liability which has been actuarially determined to be equal to the
accumulated expense charge that will amortize the employees’ benefits over their
period of District service. The liability, included in current deposits and accrued
expenses payable, includes vested accumulated rights to receive sick leave benefits
estimated to be paid within one year. The portion of sick leave expected to be paid
after one year is recorded as a component of non-current deposits and accrued
expenses payable.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, the
fiduciary net position of The Metropolitan St. Louis Sewer District Employees’
Pension Plan (“Pension Plan”) and additions to/deductions from the Pension Plan’s
fiduciary net position have been determined on the same basis as they are reported
by the Pension Plan, which has a December 31 reporting period. For this purpose,
benefit payments are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 34
Income Tax Status
The District is exempt from federal income tax under the Internal Revenue Code
as a political subdivision of the State of Missouri.
Adoption of New Accounting Standards
During fiscal year 2022, the District implemented GASB Statement No. 87, Leases,
(“GASB Statement No. 87”). GASB Statement No. 87 requires recognition of
certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized inflows of resources or outflows of resources based
on the payment provisions of the contract. It established a single model for lease
accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. A lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a
lease receivable and deferred inflow of resources.
The District’s adoption of GASB Statement No. 87 in fiscal year 2022 resulted in
retroactively restating the beginning balance of net position due to the recognition
of lease receivable, right of use lease asset, lease liability, and deferred inflow of
resources. The cumulative effect of applying GASB Statement No. 87 and the
resulting restatement of beginning net position on the District’s Statement of
Revenues, Expenses, and Changes in Net Position is detailed as follows:
July 1,
2021
Net Position - Beginning Of Year, As Previously Stated 2,897,926,670$
Effect of Adoption of GASB 87 98,719
Net Position - Beginning Of Year, As Restated 2,898,025,389$
Effect of Adoption of GASB 87 - Restatement Consists Of
Total lease receivables 3,877,683$
Lease right of use asset, net of amortization 890,649
Recognition of interest payable reported as contracts and accounts payable (478)
Lease liability (896,473)
Deferred inflows related to leases (3,772,962)
Effect of Adoption of GASB 87 98,419$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 35
During fiscal year 2022, the District implemented GASB Statement No. 98, The
Annual Comprehensive Financial Report. This statement establishes the term
annual comprehensive financial report and its acronym, ACFR. That new term
and acronym replaces the prior name, comprehensive annual financial report, and
its acronym.
During fiscal year 2022, the District implemented portions of GASB Statement No.
99, Omnibus 2022. This statement clarified provisions in GASB Statement No. 87,
Leases, relating to the determination of the lease term, classification of a lease as
a short-term lease, recognition and measurement of lease liability and a lease
asset, and identification of lease incentives. This statement also clarified
provisions in GASB Statement No. 96, Subscription-Based Information Technology
Arrangements, related to the subscription-based technology arrangement (SBITA)
term, classification of a SBITA as a short-term SBITA, and recognition and
measurement of a subscription liability. The updates to GASB 96 will be reflected
when the District implements this statement in fiscal year 2023.
During fiscal year 2022, the District implemented all applicable and relevant
sections of Implementation Guide No. 2019-3, Leases, for which the objective of
this Implementation Guide is to provide guidance that clarifies, explains, or
elaborates on the requirements of Statement No. 87, Leases.
During fiscal year 2021 the District implemented GASB Statement No. 84,
Fiduciary Activities (“GASB Statement No. 84”), originally effective for reporting
periods beginning after December 15, 2018. GASB Statement No. 95,
Postponement of the Effective Dates of Certain Authoritative Guidance (“GASB
Statement No. 95”), postponed the effective date to reporting periods beginning
after December 15, 2019. GASB Statement No. 84 describes four fiduciary funds
that should be reported, if applicable: (1) pension (and other employee benefit)
trust funds; (2) investment trust funds; (3) private-purpose trust funds; and (4)
custodial funds. The criteria for identifying fiduciary activities are established and
the focus for the criteria is on (1) whether a government is controlling the assets of
the activity and (2) the beneficiaries with whom a fiduciary relationship exists.
The objective of this Statement is to improve guidance regarding the identification
of fiduciary activities for accounting and financial reporting purposes and how
those activities should be reported. After adoption of GASB Statement No. 84, the
District began reporting the fiduciary activities of The Metropolitan St. Louis
Sewer District Employees’ Pension Plan in the financial statements.
During fiscal year 2021 the District early implemented GASB Statement No. 89,
Accounting for Interest Cost Incurred Before the End of a Construction Period
(“GASB Statement No. 89”), originally effective for reporting periods beginning
after December 15, 2019, and subsequently postponed to reporting periods
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 36
beginning after December 15, 2020, by GASB Statement No. 95. The requirements
of this Statement are applied prospectively and discontinue the practice of
considering interest costs as one of the ancillary charges necessary to place the
asset into its intended location and condition for use. This authoritative guidance
states that decisions regarding how to finance the acquisition of capital assets do
not impact the service capacity of those assets and the requirements of this
Statement will improve financial reporting by providing more relevant information
about capital assets and the cost of borrowing for a reporting period and simplify
accounting for interest cost incurred before the end of a construction period. In
financial statements prepared using the economic resources measurement focus,
which is the District’s measurement focus, interest cost incurred before the end of
a construction period should be recognized as an expense in the period in which
the cost is incurred and should not be capitalized as part of the historical cost of a
capital asset. In fiscal year 2021 interest during construction is now expensed
whereas interest costs related to the construction of capital assets incurred prior
to fiscal year 2021 were included as a cost of those assets and will be capitalized
when construction is completed, and the assets are placed in service.
During fiscal year 2021 the District reviewed GASB Statement No. 97, Certain
Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB
Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32
(“GASB Statement No. 97), for which certain requirements were effective
immediately while other requirements were effective for fiscal years and reporting
periods beginning after June 15, 2021, (earlier application of these requirements
was encouraged and permitted by requirement as specified within this Statement).
The primary objectives of this Statement are to (1) increase consistency and
comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a governing
board and the primary government performs the duties that a governing board
typically would perform; (2) mitigate costs associated with the reporting of certain
defined contribution pension plans as fiduciary component units in fiduciary fund
financial statements; and (3) enhance the relevance, consistency and comparability
of the accounting and financial reporting for Internal Revenue Code Section 457
deferred compensation plans (“Section 457 plan”) that meet the definition of a
pension plan and for benefits provided through those plans. Based on the
requirements in this Statement, the District’s defined contribution plan and
Section 457 plan do not qualify as fiduciary activities and their financial
statements are not required to be reported with the District’s basic financial
statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 37
During fiscal year 2021 the District implemented all applicable and relevant
sections of Implementation Guide No. 2019-1, Implementation Guidance Update-
2019, for which the objective is to provide guidance that clarifies, explains, or
elaborates on various GASB Statements and Implementation Guide No. 2019-2,
Fiduciary Activities, for which the objective is to provide guidance that clarifies,
explains, or elaborates on the requirements of Statement No. 84, Fiduciary
Activities.
The following GASB Statements which became effective during fiscal year 2022
and 2021 are not applicable to the District and there is no implementation impact
on the District’s financial reporting at this time.
• Statement No. 90, Majority Equity Interests, an amendment of GASB
Statements No. 14 and No. 61 (fiscal 2021)
• Statement No. 92, Omnibus 2020 (fiscal 2022)
• Statement No. 93, Replacement of Interbank Offered Rates (fiscal 2022)
Recent Accounting Standards
GASB has issued additional guidance that is not yet effective. In addition, GASB
Statement No. 95, Postponement of the Effective Dates of Certain Authoritative
Guidance, was issued in May 2020 which postponed several of the GASB
Statements listed below. The new effective dates are indicated below. The District
is currently reviewing the provisions of the following GASB Statements to
determine the impact of implementation in future periods.
• Statement No. 101 Compensated Absences (fiscal 2024)
• Statement No. 100, Accounting Changes and Error Corrections – an
amendment of GASB 62 (fiscal 2023)
• Statement No. 91, Conduit Debt Obligations (fiscal 2023)
• Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements (fiscal 2023)
• Statement No. 96, Subscription-Based Information Technology
Arrangements (fiscal 2023)
Reclassifications
Prior period financial statement amounts may have been reclassified to conform to
current period presentation. These reclassifications had a $98,719 increase to
fiscal year 2021’s total net position.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 38
2. Deposits and Investments
Deposits
At June 30, 2022, the reported amount of the District’s deposits was $63,887,919
and the bank balance was $73,069,173. Of the bank balance, $936,976 was covered
by the Federal Deposit Insurance Corporation (“FDIC”); $72,132,197 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$21,617,850 held in a trusted escrow account for the State that will be used to
make future bond payments.
At June 30, 2021, the reported amount of the District’s deposits was $97,274,120
and the bank balance was $104,666,278. Of the bank balance, $935,107 was
covered by the Federal Deposit Insurance Corporation (“FDIC”); $103,731,171 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$19,990,860 held in a trusted escrow account for the State that will be used to
make future bond payments.
Custodial credit risk for deposits is the risk that, in the event of bank failure, the
District’s deposits may not be returned to the District. Deposits in each bank are
insured by the FDIC in the amount of $250,000 for interest bearing accounts and
noninterest bearing accounts. The District’s investment policy complies with the
provisions of state laws and requires collateralization on repurchase agreements,
time certificates of deposit and deposits with banking institutions that are not
covered by the FDIC, and the collateralization level shall be 103% and shall be
based on the fair value of the pledged collateral.
Investments
The Secretary-Treasurer is authorized to invest, with the approval of the Board,
funds not immediately needed for the purpose to which said funds are applicable,
in the same manner as the state treasurer may invest funds of the State of
Missouri pursuant to Section 15, Article IV of the Constitution of Missouri, as
amended from time to time. The District’s investment policy conforms to the
investment policy guidelines for the State of Missouri. The District’s investment
policy authorizes the District to invest in the following instruments: U.S. Treasury
obligations, certificates of deposit, obligations of any agency or instrumentality of
the U.S., repurchase agreements, bankers’ acceptances, and commercial paper, all
according to terms specified in the policy. The District also has investments in
money market mutual funds that hold securities approved by the District’s
investment policy. At June 30, 2022, and June 30, 2021, all of the District’s
investments were in compliance with the District’s investment policy and Charter.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 39
A summary of deposits and investments as of June 30, 2022, and June 30, 2021 is
as follows:
A reconciliation to the Statements of Net Position is as follows:
Investment Type Cost Fair Value Cost Fair Value
Deposits 63,887,919$ 63,887,919$ 97,274,120$ 97,274,120$
Money Market Mutual Funds 21,617,850 21,617,850 19,990,860 19,990,860
U.S. Treasury and
Agency Obligations 501,598,900 489,050,072 539,097,325 538,632,467
Commercial Paper 173,000,000 172,251,461 46,126,622 46,135,900
Total 760,104,669$ 746,807,302$ 702,488,927$ 702,033,347$
2022 2021
2022 2021
Cash and Cash Equivalents
Unrestricted Current 64,845,757$ 91,337,843$
Restricted Current 2,978,669 4,629,689
Restricted Non-Current 66,628,666 26,297,303
Investments
Unrestricted Current 187,145,188 210,940,744
Restricted Current 9,896,863 12,587,475
Restricted Non-Current 98,773,850 125,637,074
Long-Term Investments
Restricted Non-Current 41,824,592 32,199,117
Other 274,713,717 198,404,102
Total 746,807,302$ 702,033,347$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 40
Interest Rate Risk
As of June 30, 2022, and 2021, the District had the following investments and
maturities:
In accordance with the District’s investment policy, the District will minimize the
risk that the fair value of debt securities in the portfolio will fall due to increases
in general interest rates by:
1. Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity;
2. Investing operating funds primarily in short-term securities;
3. Complying with state law which limits the maximum stated maturities to
five years on any investment from the date of purchase.
Long-Term Investments
While the majority of the District’s portfolio is made up of short-term investments,
the District also categorizes a sizeable amount as long-term under the categories
discussed in Note 1, Summary of Significant Accounting Policies. The District is
allowed to purchase long-term callable securities. These callable securities give the
issuer the right to redeem at predetermined prices at a specific time prior to
maturity. When a security is called, the District reflects an immediate
reclassification from long-term investment to cash.
Weighted Weighted
Average Average
Maturity Maturity
Investment Type Fair Value (Years) Fair Value (Years)
U.S. Treasury Obligations 306,177,567$ 1.66 338,993,883$ 1.16
U.S. Agency Obligations 182,872,505 1.45 199,638,584 1.13
Commercial Paper 172,251,461 0.23 46,135,900 0.24
Total 661,301,533$ 1.23 584,768,367$ 1.07
2022 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 41
Custodial/Credit Risk
The District will minimize credit risk for investments, the risk of loss due to failure
of the security issuer or backer, by:
1. Prequalifying the financial institutions, broker/dealers, intermediaries, and
advisors with which the District will do business;
2. Diversifying the portfolio so that potential losses on individual securities
will be minimized.
In accordance with its investment policy, the District limits its investments in
these investment types to those investments with the top rating issued by
Nationally Recognized Statistical Rating Organizations. As of June 30, 2022, and
June 30, 2021, the District’s investments in commercial paper were rated A-1 by
Standard & Poor’s (“S&P”), F-1 by Fitch and P-1 by Moody’s Investors Service
(“Moody’s”). The District’s investments in U.S. Agency obligations that do not
carry the explicit guarantee of the U.S. Government all carry a rating assigned by
S&P of AA+, by Fitch AAA and Moody’s Aaa. Money market investments are rated
as AAAm and Aaa-mf by S&P and Moody’s, respectively.
Concentration of Credit Risk
The District’s investment policy places no limit on the amount the District may
invest in any one issuer with respect to collateralized time and demand deposits.
U.S. Treasury obligations are not limited. U.S. Agency obligations and
government-sponsored enterprises are limited to 60% of the portfolio, with no more
than 30% of the total portfolio invested in securities of any one agency; and
collateralized repurchase agreements are limited to 50% of the portfolio. U.S.
Agency callable securities are limited to 30% of the portfolio, and commercial paper
and bankers’ acceptances are limited to 25% each, with no more than 5% of the
total portfolio invested in any one issuer. The following table lists investments in
issuers that represent 5% or more of total investments at either June 30, 2022, or
June 30, 2021:
Issuer 2022 2021
Treasury Notes 46.3 58.0
Federal Home Loan Bank 8.3 13.3
Federal Agriculture Mortgage Association 5.9 1.4
Federal Home Loan Bank Discount Note 5.2 2.7
Federal Farm Credit Funding Corp 2.1 10.7
Percent Of
Total Investments
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 42
Fair Value Measurement and Application
The District categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles pursuant to
GASB Statement No. 72, Fair Value Measurement and Application. The hierarchy
is based on the valuation inputs used to measure the fair value of the asset. Level
1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
The District has the following recurring fair value measurements as of June 30,
2022, and June 30, 2021:
Money Market Mutual Funds of $21.6 million and $20.0 million,
respectively, are valued using a market approach to measuring fair
value prices that considers relevant information generated by market
transactions involving identical or similar assets or groups of assets.
(Level 2 inputs)
U.S. Treasury and Agency Obligations of $489.0 million and $538.6
million, respectively, are valued using a market approach to
measuring fair value prices that considers relevant information
generated by market transactions involving identical or similar
assets or groups of assets. (Level 2 inputs)
Commercial Paper of $172.3 million and $46.1 million, respectively,
is valued using a market approach to measuring fair value prices that
considers relevant information generated by market transactions
involving identical or similar assets or group of assets. (Level 2
inputs)
See Notes 9 and 10 for information regarding the cash and investments held by
the Fiduciary Pension Trust Fund.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 43
3. Notes Receivable
The District has a note receivable with Missouri American Water Company
(“MOAM”) for its portion of the capital costs related to the Lower Meramec
Wastewater Treatment Plant. The original loan established in fiscal year 2008
bears interest at 4.35%, while the two loans added during fiscal year 2013 bear
interest at 4.50% and 3.52%. The current portion of this note is included in the
Unrestricted Other receivables line on the Statements of Net Position. The note
receivable will mature in fiscal year 2033.
At June 30, 2022, future payments are as follows:
At June 30, 2021, future payments were as follows:
2023 1,154,696$
2024 1,154,696
2025 1,154,696
2026 1,154,696
2027 1,154,696
2028-2032 5,773,479
2033 563,799
12,110,758
Less: Amount representing interest 2,416,056
Total Notes Receivable 9,694,702$
Classification in Statement of Net Position:
Current - Other receivables 747,480$
Non-current - Notes receivable 8,947,222
Total Notes Receivable 9,694,702$
2022 1,154,696$
2023 1,154,696
2024 1,154,696
2025 1,154,696
2026 1,154,696
2027-2031 5,773,479
2032-2033 1,718,494
13,265,453
Less: Amount representing interest 2,854,724
Total Notes Receivable 10,410,729$
Classification in Statement of Net Position:
Current - Other receivables 716,027$
Non-current - Notes receivable 9,694,702
Total Notes Receivable 10,410,729$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 44
4. Capital Assets
The following is a summary of capital assets changes for the fiscal years ended
June 30, 2022 and 2021:
Balance
June 30, 2021 Balance
as restated June 30, 2022
Capital assets not being depreciated:
Land 79,569,310$ 2,636,538$ —$ 82,205,848$
Construction in progress 1,194,033,441 243,968,862 (259,111,388) 1,178,890,914
Total capital assets not being depreciated 1,273,602,751 246,605,399 (259,111,388) 1,261,096,762
Capital assets, being depreciated
Treatment and disposal plant
and equipment 1,303,648,712 29,236,363 (387,056) 1,332,498,020
Collection and pumping plant 3,093,068,764 238,812,299 (2,423,864) 3,329,457,199
General plant and equipment 103,516,644 7,536,642 (1,467,759) 109,585,527
Total capital assets being depreciated 4,500,234,120 275,585,305 (4,278,679) 4,771,540,746
Less Accumulated depreciation for
Treatment and disposal plant
and equipment (686,410,998) (37,884,475) 237,651 (724,057,822)
Collection and pumping plant (929,741,932) (52,881,431) 900,805 (981,722,558)
General plant and equipment (79,341,606) (4,728,173) 1,442,713 (82,627,066)
Total accumulated depreciation (1,695,494,536) (95,494,079) 2,581,169 (1,788,407,446)
Total capital assets being depreciated, net 2,804,739,584 180,091,226 (1,697,510) 2,983,133,300
Lease Assets, being amortized 1,032,853 515,702 — 1,548,555
Less Accumulated amortization (142,204) (158,105) — (300,309)
Total Lease Assets being amortized, net 890,649 357,597 — 1,248,246
Total Capital Assets 4,079,232,984$ 427,054,222$ (260,808,898)$ 4,245,478,308$
DeletionsAdditions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 45
A restatement of assets for FY21 is reflective of the GASB 87 implementation.
5. Leases
MSD, as a Lessee, has entered into lease agreements for fire hydrant keys &
reducers, order control chemical treatment equipment, printing and imaging
equipment, antenna, and equipment space. In fiscal years 2022 and 2021, the
district recorded lease assets in the amount of $1,032,853 and $515,702, less
accumulated amortization of $142,204 and $158,105, respectively.
Balance
Balance June 30, 2021
June 30, 2020 As Restated
Capital assets not being depreciated:
Land 78,333,629$ 1,235,681$ —$ 79,569,310$
Construction in progress 1,012,925,929 299,650,837 (118,543,325) 1,194,033,441
Total capital assets not being depreciated 1,091,259,558 300,886,518 (118,543,325) 1,273,602,751
Capital assets being depreciated:
Treatment and disposal plant
and equipment 1,289,884,442 14,244,282 (480,012) 1,303,648,712
Collection and pumping plant 2,974,542,039 120,283,066 (1,756,341) 3,093,068,764
General plant and equipment 100,949,737 6,083,654 (3,516,747) 103,516,644
Total capital assets being depreciated 4,365,376,218 140,611,002 (5,753,100) 4,500,234,120
Less: Accumulated depreciation:
Treatment and disposal plant
and equipment (651,154,735) (35,699,307) 443,044 (686,410,998)
Collection and pumping plant (879,675,620) (50,729,803) 663,491 (929,741,932)
General plant and equipment (77,916,252) (4,923,159) 3,497,805 (79,341,606)
Total accumulated depreciation (1,608,746,607) (91,352,269) 4,604,340 (1,695,494,536)
Total capital assets being depreciated, net 2,756,629,611 49,258,733 (1,148,760) 2,804,739,584
Lease Assets, being amortized — 1,032,853 — 1,032,853
Less Accumulated amortization — (142,204) — (142,204)
Total Lease Assets being amortized, net — 890,649 — 890,649
Total Capital Assets 3,847,889,169$ 351,035,900$ (119,692,085)$ 4,079,232,984$
Additions Deletions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 46
The future principal and interest lease payments as of June 30, 2022, were as
follows:
MSD, as a lessor, has entered into lease agreements with four companies involving
land usage and one company for building usage. The total amount of inflows of
resources, including lease revenue, interest revenue, and other lease related
inflows, recognized during the fiscal years 2022, and 2021 was $4,155,434 and
$731,194, respectively.
At June 30, 2022, the principle and interest requirements to maturity for the lease
receivable are as follows:
Fiscal Year Principal Interest Total
2023 238,285$ 15,614$ 253,899$
2024 241,903 12,517 254,420
2025 245,957 9,000 254,957
2026 247,369 5,411 252,780
2027 199,736 1,812 201,548
2028 - 2031 72,266 347 72,613
1,245,516$ 44,701$ 1,290,217$
Fiscal Year Principal Interest Total
2023 285,860$ 34,226$ 320,086$
2024 295,945 32,001 327,946
2025 321,965 29,444 351,409
2026 150,570 27,158 177,728
2027 163,173 25,290 188,463
2028 - 2032 886,636 95,374 982,010
2033 - 2037 892,563 38,069 930,632
2038 - 2042 157,914 12,455 170,369
2043 - 2047 166,200 8,564 174,764
2048 - 2052 196,697 4,281 200,978
2053 - 2055 77,042 350 77,392
3,594,565$ 307,212$ 3,901,777$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 47
6. Property Tax
On or before October 1 of each year, the District levies ad valorem taxes on all
taxable tangible property, real and personal, within its boundaries based on
assessed valuations established by the City of St. Louis and St. Louis County
Assessors. Taxes levied are used for stormwater operations, maintenance, and
construction. Taxes are recorded as non-operating revenues and recognized, net of
estimated refunds and estimated uncollectible amounts, in the period for which
the taxes are levied. Property tax bills are typically mailed in October. They
become delinquent and represent a lien on the related property if not paid by
December 31. All property taxes are billed and collected by the City of St. Louis
and St. Louis County Collectors of Revenue and are remitted to the District
monthly.
In fiscal years 2022 and 2021, the District recorded revenue from property taxes
in the amount of $44,479,669 and $43,624,302, respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 48
7. Long-Term Liabilities
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2022:
Original Balance Balance
Issuance June 30, June 30, Current
Amounts 2021 Additions Retirements 2022 Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds:
Series 2010B 85,000,000$ 85,000,000$ —$ —$ 85,000,000$ —$
Series 2012A 225,000,000 40,320,000 — (36,645,000) 3,675,000 —
Series 2012B 141,730,000 37,800,000 — (36,860,000) 940,000 —
Series 2013B 150,000,000 38,990,000 — (3,520,000) 35,470,000 3,695,000
Series 2015B 223,855,000 166,030,000 — (3,070,000) 162,960,000 3,220,000
Series 2016C 150,000,000 138,740,000 — (3,070,000) 135,670,000 3,195,000
Series 2017A 316,175,000 305,580,000 — (5,490,000) 300,090,000 11,040,000
Series 2019B 52,130,000 51,295,000 — (880,000) 50,415,000 920,000
Series 2019C (Taxable) 276,260,000 274,745,000 — (1,545,000) 273,200,000 1,570,000
Series 2020B 120,000,000 118,055,000 — (1,895,000) 116,160,000 1,990,000
Series 2022B 109,070,000 — 109,070,000 — 109,070,000 6,345,000
Water Infrastructure Finance and Innovation Act (WIFIA) Senior Bonds:
Series 2018A 47,722,204 261,480 — — 261,480 —
Wastewater System Senior Refunding Revenue Bonds, Direct Placement:
Series 2021C 5,620,000 5,620,000 — — 5,620,000 —
Series 2022A 39,845,000 — 39,845,000 — 39,845,000 —
Water Pollution Control and Drinking Water Subordinate Revenue Bonds (State Revolving Funds Program):
Series 2004B 161,280,000 46,625,000 — (9,540,000) 37,085,000 9,610,000
Series 2005A 6,800,000 2,400,000 — (375,000) 2,025,000 385,000
Series 2006A 42,715,000 16,075,000 — (2,530,000) 13,545,000 2,590,000
Series 2006B 14,205,000 5,890,000 — (780,000) 5,110,000 800,000
Series 2008A/B 40,000,000 17,790,000 — (2,050,000) 15,740,000 2,095,000
Missouri Department of Natural Resources:
Series 2009A 23,000,000 11,891,700 — (1,203,700) 10,688,000 1,231,600
Series 2010A 7,980,700 4,682,900 — (404,600) 4,278,300 412,900
Series 2010C 37,000,000 21,269,000 — (1,890,000) 19,379,000 1,939,000
Series 2011A 39,769,300 28,611,300 — (1,884,000) 26,727,300 1,932,000
Series 2013A 52,000,000 38,679,000 — (2,427,000) 36,252,000 2,490,000
Series 2015A 75,000,000 58,973,000 — (3,589,000) 55,384,000 3,674,000
Series 2016A 20,000,000 17,001,000 — (899,000) 16,102,000 919,000
Series 2016B 75,500,000 65,850,000 — (3,358,000) 62,492,000 3,432,000
Series 2018B 25,174,403 24,302,912 871,491 (533,000) 24,641,403 1,082,000
Series 2019A 23,952,000 22,011,686 1,940,314 — 23,952,000 —
Series 2020A 22,000,000 9,983,418 10,888,992 — 20,872,410 —
Series 2021A 63,101,000 5,333,065 15,520,285 — 20,853,350 —
Series 2021B 40,201,000 7,260,558 19,159,765 (874,000) 25,546,323 1,770,000
2,712,085,607$ 1,667,066,019$ 197,295,847$ (125,312,300)$ 1,739,049,566$ 66,337,500$
Add:
Unamortized premium, net of discount 166,472,148
Total Bonds and Notes Payable 1,905,521,714$
Current Portion of Bonds and Notes Payable 66,337,500$
Non-Current Bonds and Notes Payable 1,839,184,214
Total Bonds and Notes Payable 1,905,521,714$
Net Pension Liability 29,495,178$ 4,375,878$ —$ 33,871,056$ —$
Total OPEB Liability 24,920,628$ 1,872,954$ —$ 26,793,582$ —$
Deposits and Accrued Expenses
686,968$ 63,980$ —$ 750,948$ —$
Compensated absences 9,461,777 792,714 (671,912) 9,582,579 958,259
Total Deposits and Accrued Expenses 10,148,745$ 856,694$ (671,912)$ 10,333,527$ 958,259$
Current Portion (Compensated absences) in Current Deposits and Accrued Expenses 958,259$
Non-Current Deposits and Accrued Expenses 9,375,268
Total Deposits and Accrued Expenses 10,333,527$
Landfill closure and postclosure costs
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 49
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2021:
Original Balance Balance
Issuance June 30, June 30, Current
Amounts 2020 Additions Retirements 2021 Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds:
Series 2010B 85,000,000$ 85,000,000$ —$ —$ 85,000,000$ —$
Series 2011B 52,250,000 13,725,000 — (13,725,000) — —
Series 2012A 225,000,000 45,620,000 — (5,300,000) 40,320,000 5,300,000
Series 2012B 141,730,000 41,525,000 — (3,725,000) 37,800,000 4,050,000
Series 2013B 150,000,000 42,380,000 — (3,390,000) 38,990,000 3,520,000
Series 2015B 223,855,000 168,950,000 — (2,920,000) 166,030,000 3,070,000
Series 2016C 150,000,000 141,695,000 — (2,955,000) 138,740,000 3,070,000
Series 2017A 316,175,000 309,240,000 — (3,660,000) 305,580,000 5,490,000
Series 2019B 52,130,000 52,130,000 — (835,000) 51,295,000 880,000
Series 2019C (Taxable) 276,260,000 276,260,000 — (1,515,000) 274,745,000 1,545,000
Series 2020B 120,000,000 — 120,000,000 (1,945,000) 118,055,000 1,895,000
Water Infrastructure Finance and Innovation Act (WIFIA) Senior Bonds:
Series 2018A 47,722,204 261,480 — — 261,480 —
Wastewater System Senior Refunding Revenue Bonds, Direct Placement:
Series 2021C 5,620,000 — 5,620,000 — 5,620,000 —
Water Pollution Control and Drinking Water Subordinate Revenue Bonds (State Revolving Funds Program):
Series 2004B 161,280,000 55,730,000 — (9,105,000) 46,625,000 9,540,000
Series 2005A 6,800,000 2,765,000 — (365,000) 2,400,000 375,000
Series 2006A 42,715,000 18,550,000 — (2,475,000) 16,075,000 2,530,000
Series 2006B 14,205,000 6,650,000 — (760,000) 5,890,000 780,000
Series 2008A/B 40,000,000 19,795,000 — (2,005,000) 17,790,000 2,050,000
Missouri Department of Natural Resources:
Series 2009A 23,000,000 13,068,200 — (1,176,500) 11,891,700 1,203,700
Series 2010A 7,980,700 5,079,500 — (396,600) 4,682,900 404,600
Series 2010C 37,000,000 23,111,000 — (1,842,000) 21,269,000 1,890,000
Series 2011A 39,769,300 30,449,300 — (1,838,000) 28,611,300 1,884,000
Series 2013A 52,000,000 41,044,000 — (2,365,000) 38,679,000 2,427,000
Series 2015A 75,000,000 62,478,000 — (3,505,000) 58,973,000 3,589,000
Series 2016A 20,000,000 17,158,430 722,570 (880,000) 17,001,000 899,000
Series 2016B 75,500,000 61,285,085 7,850,915 (3,286,000) 65,850,000 3,358,000
Series 2018B 25,267,000 18,228,388 6,074,524 — 24,302,912 533,000
Series 2019A 23,952,000 6,291,992 15,719,694 — 22,011,686 —
Series 2020A 22,000,000 — 9,983,418 — 9,983,418 —
Series 2021A 63,101,000 — 5,333,065 — 5,333,065 —
Series 2021B 40,201,000 — 7,260,558 — 7,260,558 874,000
2,615,513,204$ 1,558,470,375$ 178,564,744$ (69,969,100)$ 1,667,066,019$ 61,157,300$
Add:
Unamortized premium, net of discount 162,860,332
Total Bonds and Notes Payable 1,829,926,351$
Current Portion of Bonds and Notes Payable 61,157,300$
Non-Current Bonds and Notes Payable 1,768,769,051
Total Bonds and Notes Payable 1,829,926,351$
Net Pension Liability 57,792,913$ (28,297,735)$ —$ 29,495,178$ —$
Total OPEB Liability 23,164,618$ 1,756,010$ —$ 24,920,628$ —$
Deposits and Accrued Expenses
622,913$ 64,055$ —$ 686,968$ —$
Compensated absences 9,249,172 799,410 (586,805) 9,461,777 946,178
Total Deposits and Accrued Expenses 9,872,085$ 863,465$ (586,805)$ 10,148,745$ 946,178$
Current Portion (Compensated absences) in Current Deposits and Accrued Expenses 946,178$
Non-Current Deposits and Accrued Expenses 9,202,567
Total Deposits and Accrued Expenses 10,148,745$
Landfill closure and postclosure costs
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 50
Voter Approved Bond Authorizations
The District has received voter authorization for revenue bonds on the dates and
in the amounts presented below. These funds were sought to enable the District to
comply with federal and state clean water requirements. Only new bond issuances
count against these authorizations while none of the refunding issuances count
against them. From the total voter authorization of $3,120,000,000, $744,149,393
has not been issued as of June 30, 2022.
Wastewater System Senior Refunding Revenue Bonds Payable, Direct
Placement
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $39,845,000 of Wastewater System Senior Refunding Revenue
Bonds Series 2022A (“Series 2022A”) which closed in May 2022. These Series
2022A bonds were issued to partially refund the Series 2012A bonds maturing in
fiscal years 2033 through 2039 totaling $31,345,000 and partially refund the Series
2012B bonds maturing in fiscal years 2025 through 2027 totaling $23,500,000.
Proceeds of $48,087,226, including a premium of $8,242,226 and $6,771,267 in
excess debt service reserves contributed by the District were used to partially
defease Series 2012A and 2012B and the related balances for those bonds were
reduced from the District’s financial statements in fiscal year 2022.
This direct placement refunding decreased total debt service payments by
$17,896,368, resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $8,201,500. These Series 2022A senior direct placement bonds have
interest rates of 5.00% and are payable in semiannual installments at varying
amounts through May 1, 2039.
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $5,620,000 of Wastewater System Senior Refunding Revenue
Date of Authorization
Voter Authorized
Amount
February 2004 500,000,000$
August 2008 275,000,000
June 2012 945,000,000
April 2016 900,000,000
April 2021 500,000,000
Total 3,120,000,000$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 51
Bonds Series 2021C (“Series 2021C”) which closed in May 2021 to coincide with
the call date of the outstanding Series 2011B bonds. These Series 2021C bonds,
which were previously identified as Series 2021A but were subsequently renamed
due to the timing of their issuance, were issued to refund the Series 2011B bonds
maturing in fiscal years 2030 through 2032 totaling $11,395,000. Proceeds of
$7,371,752, including a premium of $1,751,752, and $4,025,780 in excess debt
service reserves the District contributed were used to refund all the remaining
outstanding Series 2011B bonds and the $2,532 interest accrued thereon. The
related liability for the Series 2011B bonds refunded were removed from the
District’s financial statements in fiscal 2021.
This direct placement refunding decreased total debt service payments by
$7,527,111, resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $2,553,241. These Series 2021C senior direct placement bonds have
interest rates of 5.00% and are payable in semiannual installments at varying
amounts through May 1, 2032.
Principal and Interest Requirements on Senior Refunding Revenue
Bonds Payable, Direct Placement
The annual principal and interest requirements to maturity on direct placement
senior refunding revenue bonds payable outstanding as of June 30, 2022, are as
follows:
Wastewater System Revenue Bonds Payable
In June 2022, the District issued $109,070,000 of Wastewater System Senior
Refunding Revenue Bonds Series 2022B (“Series 2022B”). These bonds were issued
for two purposes: $9,070,000 to partially refund the Series 2012B bonds maturing
Years ending June 30, Principal Interest Total
2023 —$ 2,262,182$ 2,262,182$
2024 — 2,273,250 2,273,250
2025 3,360,000 2,273,250 5,633,250
2026 6,915,000 2,105,250 9,020,250
2027 7,110,000 1,759,500 8,869,500
2028-2032 5,620,000 6,751,250 12,371,250
2033-2037 8,285,000 4,700,750 12,985,750
2038-2039 14,175,000 1,213,750 15,388,750
Total 45,465,000$ 23,339,182$ 68,804,182$
Wastewater System Senior Refunding Revenue Bonds Payable
Direct Placement
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 52
in fiscal years 2023 through 2024 totaling $9,310,000. The remaining
$100,000,000 was issued pursuant to the April 2016 authorization for the purpose
of constructing, repairing, replacing, and equipping new and existing District
wastewater facilities. None of the funds from this issuance have been expended. A
premium of $13,362,572 was received on the $100,000,000 portion of the Series
2022B. These Series 2022B senior bonds have an interest rate of 5.0% and are
payable in semiannual installments at varying amounts through June 1, 2052.
The Series 2022B refunding net proceeds of $9,382,256 (including a premium of
$371,595 less payments of $20,617 in underwriter fees and $35,584 in issuance
costs) were used to purchase U.S. government securities. These securities were
deposited in an irrevocable trust with an escrow agent to provide for the future
debt service payments defined above on the Series 2012B, the sum of the
$9,382,256 deposited into escrow and the earnings on the U.S. government
securities refunded $9,070,000 in principal payments for call dates May 1, 2023
and May 1, 2024 for Series 2012B and the interest thereon, this leaves a principal
payment of $940,000 due on May 2031 and the related balance for Series 2012B
was reduced from the District’s financial statements in fiscal year 2022. This
refunding decreased total debt service payments by $303,860 resulting in an
economic gain (difference between the present values of the debt service
requirements on the old and new debt adjusted for the additional cash paid) of
$294,263. Interest payments of $72,256 and principal payments of $9,310,000
were made from the escrow account in fiscal year 2022.
In December 2020, the District issued $120,000,000 of Wastewater System Senior
Revenue Bonds Series 2020B (“Series 2020B”). These bonds were issued pursuant
to the April 2016 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities
and as of June 30, 2022, $156,829,736 has been expended. A premium of
$37,194,201 was received on the issuance of Series 2020B. These Series 2020B
senior bonds have an interest rate of 5.0% and are payable in semiannual
installments at varying amounts through June 1, 2050.
In December 2019, the District issued $52,130,000 of Wastewater System Senior
Revenue Bonds Series 2019B (“Series 2019B”). These bonds were issued pursuant
to the April 2016 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. A premium of $12,059,977 was
received on the issuance of Series 2019B. These Series 2019B senior bonds have
an interest rate of 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2049.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 53
In December 2019, the District issued $276,260,000 of Taxable Wastewater System
Senior Refunding Revenue Bonds Series 2019C (“Series 2019C”). These bonds were
issued to partially advance refund the Series 2012A bonds maturing in fiscal years
2040 through 2042 totaling $103,120,000, the Series 2012B bonds maturing in
fiscal years 2028 through 2034 totaling $83,925,000 (excludes $940,000 of the May
2031 principal payment due), the Series 2013B bonds maturing in fiscal years 2031
and 2032, 2036 through 2038, and 2040 through 2043 totaling $67,985,000 and the
Series 2015B bonds maturing in fiscal years 2044 through 2045 totaling
$18,400,000.
The Series 2019C refunding net proceeds of $274,474,218 (after payments of
$1,063,039 in underwriter fees and $722,743 in issuance costs) and the
$26,045,142 in excess debt service reserves the District contributed were used to
purchase U.S. government securities. These securities were deposited in an
irrevocable trust with an escrow agent to provide for the future debt service
payments defined above on the Series 2012A, Series 2012B, Series 2013B and
Series 2015B bonds. The sum of the $300,519,360 deposited into escrow and the
earnings on the U.S. government securities will fund the $273,430,000 advanced
refunded principal payments on their call dates (May 1, 2022 for Series 2012A and
Series 2012B, May 1, 2023 for Series 2013B and May 1, 2025 for Series 2015B) and
the interest thereon. Interest payments of $13,671,500 and principal payments of
$187,045,000 were made from the escrow account in fiscal year 2022. All
$273,430,000 debt defeased in substance to be paid from the escrow account with
an outstanding amount of $86,385,000 as of June 30, 2022. As a result of placing
the cash with an escrow agent in a trust, Series 2012A, Series 2012B, Series 2013B,
and Series 2015B bonds were partially defeased and the related liability for those
bonds were removed from the District’s financial statements in fiscal year 2020.
This advance refunding decreased total debt service payments by $98,737,402,
resulting in an economic gain (difference between the present values of the debt
service requirements on the old and new debt adjusted for the additional cash paid)
of $42,691,317. These Series 2019C senior bonds have interest rates ranging from
1.824% to 3.259% and are payable in semiannual installments at varying amounts
through May 1, 2045.
In December 2017, the District issued $316,175,000 of Wastewater System Senior
Revenue Bonds Series 2017A (“Series 2017A”). These bonds were issued for two
purposes: $116,175,000 was issued to partially advance refund the Series 2011B
bonds maturing in fiscal years 2022 through 2029 totaling $23,345,000, the Series
2012A bonds maturing in fiscal years 2023 through 2032 totaling $50,060,000
(excludes $240,000 of the May 2030 principal payment due), the Series 2013B
bonds maturing in fiscal years 2024 through 2029 totaling $26,385,000, and the
Series 2015B bonds maturing in fiscal years 2026 through 2029 totaling
$25,970,000. The remaining $200,000,000 was issued for the purpose of
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 54
constructing, repairing, replacing, and equipping new and existing District
wastewater facilities. All funds from this issuance have been expended.
Approximately $47,500,000 was issued pursuant to the June 2012 authorization
and $152,500,000 was issued pursuant to the April 2016 authorization. A premium
of $37,823,556 was received on the $200,000,000 portion of the Series 2017A. These
Series 2017A senior bonds have interest rates ranging from 2.0% to 5.0% and are
payable in semiannual installments at varying amounts through May 1, 2047.
The Series 2017A refunding net proceeds of $141,343,662 (including a premium of
$25,967,878 and additional proceeds of $1,220 and after payments of $428,483 in
underwriting fees and $371,953 in issuance costs) and the $934,325 in excess debt
service reserves the District contributed were used to purchase U.S. government
securities. These securities were deposited in an irrevocable trust with an escrow
agent to provide for the future debt service payments defined above on the Series
2011B, Series 2012A, Series 2013B, and Series 2015B bonds. The sum of the
$142,277,987 deposited into escrow and the earnings on the U.S. government
securities will fund the $125,760,000 advanced refunded principal payments on
their call dates (May 1, 2021 for Series 2011B, May 1, 2022 for Series 2012A, May
1, 2023 for Series 2013B, and May 1, 2025 for Series 2015B) and the interest
thereon. Interest payments of $5,058,775 and principal payments of $ $50,060,000
were made from the escrow account in fiscal year 2022. Of the $125,760,000 debt
defeased in substance to be paid from the escrow account, $52,355,000 remains
outstanding as of June 30, 2022. As a result of placing the cash with an escrow
agent in a trust, Series 2011B, Series 2012A, Series 2013B, and Series 2015B
bonds were partially defeased and the related liability for those bonds were
removed from the District’s financial statements in fiscal 2018. This advance
refunding decreased total debt service payments by $12,623,385, resulting in an
economic gain (difference between the present values of the debt service
requirements on the old and new debt adjusted for the additional cash paid) of
$9,481,147.
In December 2016, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2016C (“Series 2016C”). These bonds were issued pursuant
to the June 2012 authorization: in this case for the purpose of construction,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. A premium of $17,678,054 was
received on the issuance of Series 2016C. These Series 2016C senior bonds have
interest rates ranging from 2.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2046.
In December 2015, the District issued $223,855,000 of Wastewater System Senior
Revenue Bonds Series 2015B (“Series 2015B”). These bonds were issued for two
purposes: $73,855,000 was issued to advance refund the Series 2006C and Series
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 55
2008A bonds and $150,000,000 was issued pursuant to the June 2012
authorization: in this case for the purpose of constructing, repairing, replacing, and
equipping new and existing District wastewater facilities. All funds from this
issuance have been expended. These Series 2015B senior bonds have interest rates
ranging from 3.0% to 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2045; however, in December 2017, there was an advance
refunding of the non-refunding Series 2015B bonds for the fiscal years 2026
through 2029 totaling $25,970,000. See the explanation for Series 2017A above for
further information. In December 2019, there was a taxable advance refunding of
the Series 2015B bonds for the fiscal years 2044 through 2045 totaling
$18,400,000. See the explanation for Series 2019C above for further information.
As a result of the advance refundings, Series 2015B bonds are considered partially
defeased.
The Series 2015B refunding net proceeds of $86,848,034 (including a premium of
$13,623,487 and after payments of $337,848 in underwriting fees and $292,605 in
issuance costs) and the $8,945,557 in excess debt service reserves the District
contributed were used to purchase U.S. government securities. These securities
were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the Series 2006C and Series 2008A bonds. All principal
and interest payments on the advance refunded Series 2006C and Series 2008A
bonds have been paid from escrow and no amounts remain outstanding on these
bonds. As a result of placing the cash with an escrow agent in a trust, Series 2006C
and Series 2008A bonds were defeased and the liability for those bonds were
removed from the District’s financial statements in fiscal 2016. The original
$60,000,000 Series 2006C bonds were issued pursuant to the February 2004
authorization and the original $30,000,000 Series 2008A bonds were issued
pursuant to the August 2008 authorization. This refunding decreased total debt
service payments by $33,032,176, resulting in an economic gain (difference
between the present values of the debt service requirements on the old and new
debt adjusted for additional cash paid) of $14,544,866.
In December 2013, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2013B (“Series 2013B”). These bonds were issued pursuant
to the June 2012 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2013B senior bonds
have interest rates ranging from 2.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2043; however, in December
2017, there was an advance refunding of the Series 2013B bonds for the fiscal years
2024 through 2029 totaling $26,385,000. As a result of this advance refunding,
Series 2013B bonds are considered partially defeased. See the explanation for
Series 2017A above for further information. In December 2019, there was a taxable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 56
advance refunding of the Series 2013B bonds for nine years within a span of 12
years from 2031 through 2043 totaling $67,985,000. As a result of this advance
refunding, Series 2013B bonds are considered partially defeased. See the
explanation for Series 2019C above for further information.
In November 2012, the District issued $141,730,000 of Wastewater System Senior
Refunding Bonds Series 2012B (“Series 2012B”). These bonds were issued to
advance refund the Series 2004A bonds maturing in fiscal years 2015 and
thereafter. These Series 2012B senior bonds have interest rates ranging from 1.3%
to 5.0% and are payable in semiannual installments at varying amounts through
May 1, 2034. The Series 2012B bond’s net proceeds of $169,991,298 (including a
premium of $29,613,138 and after payments of $761,593 in underwriting fees and
$590,247 in issuance costs) were used to purchase U.S. government securities.
These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the bonds. All principal and interest
payments on the advance refunded Series 2004A bonds have been paid from escrow
and no amounts remain outstanding on these bonds. As a result of placing the cash
with an escrow agent in a trust, Series 2004A bonds were partially defeased and
the liability for those bonds related to a date after May 1, 2014, were removed from
the District’s financial statements in fiscal 2013. The original $175,000,000 Series
2004A bonds were issued pursuant to the February 2004 authorization. This
refunding decreased total debt service payments by $28,601,189, resulting in an
economic gain (difference between the present values of the debt service
requirements on the old and new debt) of $22,439,375. In December 2019, there
was a taxable advance refunding of the Series 2012B bonds for the fiscal years
2028 through 2034 totaling $83,925,000 (excludes $940,000 of the May 2031
principal payment due). See the explanation for Series 2019C above for further
information. In May 2022, there was direct placement senior refunding revenue
bonds issued to refund fiscal years 2025-2027 totaling $23,500,000. See the
explanation for Series 2022A above for further information. As a result of the
advance refunding, and the direct placement refunding, Series 2012B bonds are
considered partially defeased.
In August 2012, the District issued $225,000,000 of Wastewater System Senior
Revenue Bonds Series 2012A (“Series 2012A”). These bonds were issued pursuant
to the June 2012 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2012A senior bonds
have interest rates ranging from 2.5% to 5.3% and are payable in semiannual
installments at varying amounts through May 1, 2042. In December 2017, there
was an advance refunding of the Series 2012A bonds for the fiscal years 2023
through 2032 totaling $50,060,000 (excludes $240,000 of the May 2030 principal
payment due). See the explanation for Series 2017A above for further information.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 57
In December 2019, there was a taxable advance refunding of the Series 2012A
bonds for the fiscal years 2040 through 2042 totaling $103,120,000. In May 2022,
there was direct placement senior refunding revenue bonds issued to refund fiscal
years 2033-2039 totaling $31,345,000. See the explanation for Series 2022A above
for further information. As a result of the advance refundings, and direct
placement refunding Series 2012A bonds are considered partially defeased.
In December 2011, the District issued $52,250,000 of Wastewater System Senior
Revenue Bonds Series 2011B (“Series 2011B”). These bonds were issued pursuant
to the August 2008 authorization: in this case for the purpose of constructing,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. These Series 2011B senior bonds
have interest rates ranging from 3.0% to 5.0% and are payable in semiannual
installments at varying amounts through May 1, 2032; however, in December
2017, there was an advance refunding of the Series 2011B bonds for the fiscal years
2022 through 2029 totaling $23,345,000. See the explanation for Series 2017A
above for further information. In May 2021 there were direct placement senior
refunding revenue bonds issued to refund the remaining fiscal years 2030 through
2032 totaling $11,395,000. See the explanation for Series 2021C above for further
information. As a result of the advance refunding and direct placement, Series
2011B bonds are considered fully defeased.
In January 2010, the District issued $85,000,000 of Taxable Wastewater System
Senior Revenue Bonds (Build America Bonds – Direct Pay) Series 2010B (“Series
2010B”). These bonds were issued pursuant to the August 2008 authorization: in
this case for the purpose of constructing, repairing, replacing, and equipping new
and existing District wastewater facilities. All funds from this issuance have been
expended. These Series 2010B senior bonds have an interest rate of 5.9% and are
payable in semiannual installments at varying amounts through May 1, 2039. As
Build America Bonds under The American Recovery and Reinvestment Act
(“ARRA”) of 2009, the District receives a subsidy payment from the Federal
government equal to a percentage of the interest paid. In fiscal years 2013 and
prior the rate was 35%. Beginning with refund payments processed on March 1,
2013, and annually beginning on October 1, 2013, the IRS has adjusted this rate
as part of the sequestration. In fiscal year 2020 the subsidy percentage was 32.9%
while for 2021 the subsidy percentage was 33.0%. In fiscal year 2022 the subsidy
percentage was 33.0% and is expected to be 33.0% in fiscal year 2023.
The revenue bonds do not constitute a legal debt or liability for the District, the
State of Missouri, or for any political subdivision thereof and do not constitute
indebtedness within the meaning of any constitutional or statutory debt limitation
or restriction. Revenue derived from the operations of the Wastewater System is
pledged for the retirement of the outstanding Wastewater System Senior Revenue
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 58
Bonds listed above. Under the provisions of the bond indentures, the District
covenants to establish rates for the services of the Wastewater System sufficient
to fund operations, maintain reserves, and provide revenues to apply principal and
interest on these bonds.
The issuance of the revenue bonds does not obligate the District to levy any form
of taxation or to make any appropriation for their payments in any fiscal year. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues.
Water Pollution Control and Drinking Water Revenue Bonds Payable
In October 2008, the State Environmental Improvement and Energy Resources
Authority (“Authority”) authorized and issued $69,435,000 of Water Pollution
Control and Drinking Water Revenue Bonds (State Revolving Funds Programs)
Series 2008A/B (“Series 2008A/B”). The Series 2008A/B bonds provided funds to
issue loans to 14 Missouri political subdivisions that used the funds to finance
water pollution control and drinking water projects. A portion of the proceeds of
the Series 2008A/B bonds issued by the Authority were used to purchase
subordinate Participant Revenue Bonds (“Participant Bonds”) authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $40,000,000, the proceeds of which were used for constructing,
repairing, and equipping new and existing wastewater facilities. All funds from
this issuance have been expended. The District’s Series 2008A/B Participant Bonds
originally had interest rates ranging from 4.0% to 5.7% but effective April 1, 2021,
the District’s interest rate on all outstanding principal was modified to 0.83% but
are still payable in semiannual installments at varying amounts through January
1, 2029.
In November 2006, the Authority authorized and issued $22,105,000 of State
Revolving Funds Programs Series 2006B (“Series 2006B”). The Series 2006B bonds
provided funds to issue loans to seven Missouri political subdivisions that used the
funds to finance water pollution control and drinking water projects. A portion of
the proceeds of the Series 2006B bonds issued by the Authority were used to
purchase Participant Bonds authorized and issued by the District from the
February 2004 authorization in the aggregate principal amount of $14,205,000,
the proceeds of which were used for constructing, repairing, and equipping new
and existing wastewater facilities. All funds from this issuance have been
expended. The District’s Series 2006B Participant Bonds have interest rates
ranging from 4.0% to 5.0% and are payable in semiannual installments at varying
amounts through July 1, 2027.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 59
In May 2006, the Authority authorized and issued $87,505,000 of State Revolving
Funds Programs Series 2006A (“Series 2006A”). The Series 2006A bonds provided
funds to issue loans to 13 Missouri political subdivisions that used the funds to
finance water pollution control and drinking water projects. A portion of the
proceeds of the Series 2006A bonds issued by the Authority were used to purchase
subordinate Participant Bonds authorized and issued by the District from the
February 2004 authorization in the aggregate principal amount of $42,715,000,
the proceeds of which were used for constructing, repairing, and equipping new
and existing wastewater facilities. All funds from this issuance have been
expended. The District’s Series 2006A Participant Bonds have interest rates
ranging from 3.5% to 4.5% and are payable in semiannual installments at varying
amounts through July 1, 2026.
In May 2005, the Authority authorized and issued $53,060,000 of State Revolving
Funds Programs Series 2005A (“Series 2005A”). The Series 2005A bonds provided
funds to issue loans to 10 Missouri political subdivisions and one Missouri non-
profit corporation that were used to finance water pollution control and drinking
water projects. A portion of the proceeds of the Series 2005A bonds issued by the
Authority were used to purchase subordinate Participant Bonds authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $6,800,000, the proceeds of which were used for constructing,
repairing, and equipping new and existing wastewater facilities. All funds from
this issuance have been expended. The District’s Series 2005A Participant Bonds
have interest rates ranging from 3.0% to 5.0% and are payable in semiannual
installments at varying amounts through July 1, 2026.
In May 2004, the Authority authorized and issued $179,780,000 of State Revolving
Funds Programs Series 2004B (“Series 2004B”). The Series 2004B bonds provided
funds to issue loans to seven Missouri political subdivisions that were used to
finance water pollution control projects. A portion of the proceeds of the Series
2004B bonds issued by the Authority were used to purchase subordinate
Participant Bonds authorized and issued by the District from the February 2004
authorization in the aggregate principal amount of $161,280,000, the proceeds of
which were used to finance the District’s three water pollution control construction
projects outlined in the agreement. All funds from this issuance have been
expended. The District’s Series 2004B Participant Bonds have interest rates
ranging from 2.0% to 5.3% and are payable in semiannual installments at varying
amounts through January 1, 2027.
The Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds do not constitute a
legal debt or liability for the District, the State of Missouri, or for any political
subdivision thereof and do not constitute indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction. The issuance of the Series
2004B, 2005A, 2006A, 2006B, and 2008A/B bonds and the Series 2009A, 2010A,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 60
2010C, 2011A, 2013A, 2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and
2021B direct loans (pages 61-70) do not obligate the District to levy any form of
taxation or to make any appropriation for their payments in any fiscal year. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues.
In connection with the District’s issuance of the Participant Bonds, which were
purchased with the proceeds of the Series 2004B, 2005A, 2006A, 2006B, and
2008A/B bonds, the District participates in the State Revolving Loan Program
established by the Missouri Department of Natural Resources (“DNR”). Monies
from federal capitalization grants and state matching funds are used to fund a
bond reserve account for the participants.
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account and deposited in a
bond reserve account, in the District’s name, an additional 60% of the expenditure
amount for the Series 2004B bonds and 70% for the Series 2005A, 2006A, and
2006B bonds. For the Series 2008A/B bonds, 70% of the entire anticipated
borrowed amount was deposited into this bond reserve account at the beginning of
the loan versus as the expenditures were reimbursed. Interest earned from this
bond reserve account can be used by the District to fund interest payments on the
bonds.
On the date of each payment of the principal amount of the District’s Participant
Bonds, the trustee transfers from this bond reserve account to the master trustee
account an amount equal to 60% of the principal payment for the Series 2004B
bonds and 70% for the Series 2005A, 2006A, 2006B and 2008A/B bonds.
In accordance with the District’s Master Bond Ordinance No. 11713, adopted April
22, 2004, the District’s annual net operating revenues from wastewater activities,
as defined in the agreement, coupled with investments earnings, must be at least
125% of the current year’s principal and interest due on all senior bonds and at
least 115% of the current year’s principal and interest due on all bonds. On
June 30, 2022 and 2021, the District was in compliance with this covenant.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 61
Principal and Interest Requirements on Revenue Bonds Payable
The annual principal and interest requirements to maturity on revenue bonds
payable outstanding as of June 30, 2022, are as follows:
Water Infrastructure Finance and Innovation Act (WIFIA) Series 2018A
In December 2018, the Environmental Protection Agency (“EPA”) issued to the
District an amount totaling $47,722,204 for the purpose of constructing the Deer
Creek Sanitary Tunnel Pump Station and Sanitary Sewers Project. The principal
and interest on the bonds are expected to be paid from future wastewater revenues
and the bonds are issued from the April 2016 authorization. The Series 2018A
bonds are not subordinated. The District’s interest rate is 3.06% and is payable in
semiannual installments at varying amounts through May 1, 2053.
Principal and Interest Requirements on Water Infrastructure Finance
and Innovation Act (WIFIA) Series 2018A
As the District incurs approved capital expenditures, the EPA reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 3.06% based on the amount that has been borrowed.
As of June 30, 2022, the outstanding loan balance was $261,480. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2021B
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $40,201,000 for the purpose of improving, renovating,
repairing, replacing, and equipping the District’s Wastewater System. The
Years ending June 30, Principal Interest Total
2023 47,455,000$ 57,132,565$ 104,587,565$
2024 48,385,000 55,939,449 104,324,449
2025 45,145,000 54,147,503 99,292,503
2026 43,270,000 52,482,991 95,752,991
2027 41,095,000 50,809,456 91,904,456
2028-2032 252,645,000 224,723,894 477,368,894
2033-2037 280,845,000 168,844,864 449,689,864
2038-2042 349,590,000 103,118,252 452,708,252
2043-2047 181,965,000 39,032,661 220,997,661
2048-2052 55,760,000 7,222,375 62,982,375
Total 1,346,155,000$ 813,454,010$ 2,159,609,010$
Wastewater System Revenue Bonds Payable/
Water Pollution Control and Drinking Water
Revenue Bonds Payable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 62
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the April 2016 authorization. The
District’s interest rate is 0.78% and is payable in semiannual installments at
varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021B
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.78% based on the amount that has been borrowed.
As of June 30, 2022, the outstanding loan balance was $25,546,323. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2021A
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $63,101,000 for the purpose of constructing the Lower
Meramec Tunnel. The principal and interest on the bonds are expected to be paid
from future wastewater revenues and the bonds are issued from the April 2016
authorization. The District’s interest rate is 0.78% and is payable in semiannual
installments at varying amounts through July 1, 2044.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.78% based on the amount that has been borrowed.
As of June 30, 2022, the outstanding loan balance was $20,853,350. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2020A
In September 2020, the State of Missouri Direct Loan Program issued to the
District an amount totaling $22,000,000 for the purpose of constructing the Deer
Creek Tunnel Pump Stations. The principal and interest on the bonds are expected
to be paid from future wastewater revenues and the bonds are issued from the
April 2016 authorization. The District’s interest rate is 0.80% and is payable in
semiannual installments at varying amounts through July 1, 2042.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 63
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2020A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.80% based on the amount that has been borrowed.
As of June 30, 2022, the outstanding loan balance was $20,872,410. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2019A
In September 2019, the State of Missouri Direct Loan Program issued to the
District an amount totaling $23,952,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the April 2016 authorization. The
District’s interest rate is 0.98% and is payable in semiannual installments at
varying amounts through July 1, 2042.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2019A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2019A outstanding as of June 30, 2022, are as follows:
Years ending June 30, Principal Interest Total
2023 —$ 234,730$ 234,730$
2024 1,015,000 232,255 1,247,255
2025 1,035,000 222,259 1,257,259
2026 1,057,000 212,062 1,269,062
2027 1,078,000 201,655 1,279,655
2028-2032 5,724,000 844,657 6,568,657
2033-2037 6,321,000 551,279 6,872,279
2038-2042 6,985,000 227,189 7,212,189
2043 737,000 3,611 740,611
Total 23,952,000$ 2,729,697$ 26,681,697$
State of Missouri Direct Loan Series 2019A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 64
State of Missouri Direct Loan Series 2018B
In December 2018, the State of Missouri Direct Loan Program issued to the District
an amount totaling $25,267,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. In April
2022, the total loan amount was reduced to $25,174,403 due to the expiration of
the SRF loan. The principal and interest on the bonds are expected to be paid from
future wastewater revenues and the bonds are issued from the April 2016
authorization. The District’s interest rate is 1.38% and is payable in semiannual
installments at varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2018B
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn down on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2018B outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2016B
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,500,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through July 1, 2037.
Years ending June 30, Principal Interest Total
2023 1,079,403$ 335,409$ 1,414,812$
2024 1,100,000 321,381 1,421,381
2025 1,122,000 306,125 1,428,125
2026 1,144,000 290,566 1,434,566
2027 1,168,000 274,696 1,442,696
2028-2032 6,202,000 1,123,831 7,325,831
2033-2037 6,840,000 676,483 7,516,483
2038-2041 5,986,000 188,039 6,174,039
Total 24,641,403$ 3,516,530$ 28,157,933$
State of Missouri Direct Loan Series 2018B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 65
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016B
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016B outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2016A
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $20,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the June 2012 authorization. The District’s
interest rate is 1.2% and is payable in semiannual installments at varying amounts
through January 1, 2037.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending June 30, Principal Interest Total
2023 3,432,000$ 739,662$ 4,171,662$
2024 3,507,000 698,256 4,205,256
2025 3,583,000 655,944 4,238,944
2026 3,661,000 612,714 4,273,714
2027 3,741,000 568,548 4,309,548
2028-2032 19,966,000 2,145,630 22,111,630
2033-2037 22,242,000 887,466 23,129,466
2038 2,360,000 14,160 2,374,160
Total 62,492,000$ 6,322,380$ 68,814,380$
State of Missouri Direct Loan Series 2016B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 66
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016A outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2015A
In August 2015, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through January 1, 2035.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2015A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2015A outstanding as of June 30, 2022, are as follows:
Years ending June 30, Principal Interest Total
2023 919,000$ 190,482$ 1,109,482$
2024 939,000 179,394 1,118,394
2025 959,000 168,066 1,127,066
2026 981,000 156,492 1,137,492
2027 1,002,000 144,660 1,146,660
2028-2032 5,347,000 536,598 5,883,598
2033-2037 5,955,000 199,686 6,154,686
Total 16,102,000$ 1,575,378$ 17,677,378$
State of Missouri Direct Loan Series 2016A
Years ending June 30, Principal Interest Total
2023 3,674,000$ 664,452$ 4,338,452$
2024 3,762,000 619,455 4,381,455
2025 3,852,000 573,284 4,425,284
2026 3,943,000 526,015 4,469,015
2027 4,038,000 477,624 4,515,624
2028-2032 21,763,000 1,619,001 23,382,001
2033-2035 14,352,000 309,368 14,661,368
Total 55,384,000$ 4,789,199$ 60,173,199$
State of Missouri Direct Loan Series 2015A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 67
State of Missouri Direct Loan Series 2013A
In October 2013, the State of Missouri Direct Loan Program issued to the District
an amount totaling $52,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. Effective
April 1, 2021, the District’s interest rate on all outstanding principal was modified
to 0.83% from 1.6% but is still payable in semiannual installments at varying
amounts through July 1, 2034.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2013A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2013A outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2011A
In November 2011, the State of Missouri Direct Loan Program issued to the
District an amount totaling $39,769,300 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.5% and is payable in semiannual installments at
varying amounts through January 1, 2034.
Years ending June 30, Principal Interest Total
2023 2,490,000$ 295,698$ 2,785,698$
2024 2,555,000 274,958 2,829,958
2025 2,622,000 253,611 2,875,611
2026 2,691,000 231,707 2,922,707
2027 2,760,000 209,231 2,969,231
2028-2032 14,920,000 688,020 15,608,020
2033-2035 8,214,000 103,169 8,317,169
Total 36,252,000$ 2,056,394$ 38,308,394$
State of Missouri Direct Loan Series 2013A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 68
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2011A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2011A outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2010C
In December 2010, the State of Missouri Direct Loan Program issued to the District
an amount totaling $37,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.7% and is payable in semiannual installments at
varying amounts through January 1, 2031.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010C
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending June 30, Principal Interest Total
2023 1,932,000$ 398,939$ 2,330,939$
2024 1,982,000 369,403 2,351,403
2025 2,032,000 339,086 2,371,086
2026 2,083,000 308,010 2,391,010
2027 2,137,000 276,143 2,413,143
2028-2032 11,528,000 873,491 12,401,491
2033-2035 5,033,300 96,233 5,129,533
Total 26,727,300$ 2,661,305$ 29,388,605$
State of Missouri Direct Loan Series 2011A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 69
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010C outstanding as of June 30, 2022, are as follows:
State of Missouri Direct Loan Series 2010A
In January 2010, the State of Missouri’s Direct Loan Program - ARRA issued to
the District an amount totaling $7,980,700 for the construction, improvement,
renovation, repair, replacement and equipping of its Wastewater System, under
the authority of and in full compliance with the District’s Charter (“Plan”) and the
bonds were issued from the August 2008 authorization. The District’s interest rate
is 1.5% and is payable in semiannual installments at varying amounts through
July 1, 2031.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010A outstanding as of June 30, 2022, are as follows:
Years ending June 30, Principal Interest Total
2023 1,939,000$ 311,790$ 2,250,790$
2024 1,989,000 279,609 2,268,609
2025 2,041,000 246,576 2,287,576
2026 2,094,000 212,685 2,306,685
2027 2,148,000 177,911 2,325,911
2028-2031 9,168,000 345,527 9,513,527
Total 19,379,000$ 1,574,098$ 20,953,098$
State of Missouri Direct Loan Series 2010C
Years ending June 30, Principal Interest Total
2023 412,900$ 61,795$ 474,695$
2024 421,300 55,657 476,957
2025 429,800 49,390 479,190
2026 438,500 42,998 481,498
2027 447,400 36,475 483,875
2028-2032 2,128,400 79,807 2,208,207
Total 4,278,300$ 326,122$ 4,604,422$
State of Missouri Direct Loan Series 2010A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 70
State of Missouri Direct Loan Series 2009A
In October 2009, the DNR loaned $23,000,000 to the District. The State of Missouri
Direct Loan Series 2009A note bears interest at a rate of 1.5% per annum and is
payable through January 1, 2030. The purpose of this note was to finance the
designing, constructing, improving, renovating, repairing, replacing and equipping
of new and existing sewer facilities within the District. The principal and interest
on the note are expected to be paid from future wastewater revenues and the note
was issued from the August 2008 authorization.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2009A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2009A outstanding as of June 30, 2022, are as follows:
In accordance with the Direct Loan Series 2009A, 2010A, 2010C, 2011A, 2013A,
2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and 2021B ordinances, the
District’s annual net operating revenues from wastewater activities, as defined in
the agreement, coupled with investments earnings must be at least 115% of the
current year’s principal and interest due on all bonds. At June 30, 2022 and 2021,
the District was in compliance with this covenant.
Wastewater System Cash and Investments
The following accounts have been established in accordance with bond ordinances
and financing agreements that require receipts generated from operations be
segregated and certain reserve accounts be established:
Years ending June 30, Principal Interest Total
2023 1,231,600$ 151,537$ 1,383,137$
2024 1,260,000 133,491 1,393,491
2025 1,289,200 114,989 1,404,189
2026 1,319,000 96,059 1,415,059
2027 1,349,500 76,690 1,426,190
2028-2031 4,238,700 109,330 4,348,030
Total 10,688,000$ 682,096$ 11,370,096$
State of Missouri Direct Loan Series 2009A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 71
Revenue Fund
The Revenue Fund will be used for the purpose of depositing wastewater and
stormwater operating revenues, providing funds to pay for expenses related to the
operation and maintenance of the District, and fulfilling Sinking Fund
requirements in accordance with the bond ordinances.
Sinking Fund
The bond ordinances provide for deposits to and the use of monies in the Sinking
Fund to be used for the sole purpose of principal and interest payments on the
bonds. Sufficient monies shall be paid in periodic installments from the Revenue
Fund.
Debt Service Fund
The Debt Service Fund shall be used by the Trustee for the sole purpose of paying
the principal and interest on the bonds, as and when the same become due.
Debt Service Reserve Fund
After initial deposit of the amount required pursuant to the bond ordinances and
financing agreements of the Series 2010B, 2012A, 2012B and 2013B bonds, monies
in the Debt Service Reserve Fund shall be disbursed and expended by the District
solely for the payment of the principal and interest on the bonds and notes to the
extent of any deficiency in the Debt Service Fund for such purpose. The District
may disburse and expend monies from the Debt Service Reserve Fund for such
purpose immediately. As of June 30, 2022, and 2021, cash and investments in the
Debt Service Reserve Fund totaled $14,220,682 and $21,045,454, respectively.
Series 2015B was issued without a debt service reserve fund requirement and at
that time $8,945,557 in excess debt service reserves along with part of the Series
2015B proceeds were used to advance refund Series 2006C and Series 2008A
bonds.
Series 2016C was issued without a debt service reserve fund requirement.
Series 2017A was issued without a debt service reserve fund requirement and at
that time $934,325 in excess debt service reserves along with part of the Series
2017A proceeds were used to partially advance refund Series 2011B, Series 2012A,
Series 2013B and Series 2015B.
Series 2018A was issued without a debt service reserve fund requirement.
Series 2019B was issued without a debt service reserve fund requirement.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 72
Series 2019C was issued without a debt service reserve fund requirement and at
that time $26,045,142 in excess debt service reserves along with the Series 2019C
proceeds were used to partially advance refund Series 2012A, Series 2012B, Series
2013B and Series 2015B.
Series 2020B was issued without a debt service reserve fund requirement.
Series 2021C was issued without a debt service reserve fund requirement and at
that time $4,025,780 in excess debt service reserves along with the Series 2021C
proceeds were used in a current refunding of Series 2011B.
Series 2022A was issued without a debt service reserve fund requirement and at
that time $6,771,267 in excess debt service reserves along with the Series 2022A
proceeds were used in a current refunding of Series 2012A and 2012B.
Series 2022B was issued without a debt service reserve fund requirement.
Special Participant Bond Reserve Account
For the Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds, the DNR
deposited into the Special Participant Bond Reserve Account, amounts in
accordance with the bond ordinances, which shall be disbursed and expensed by
the District solely for the payment of the principal and interest on the Participant
Bonds to the extent of any deficiency in the Sinking Fund for such purpose. At
June 30, 2022 and 2021, cash and investments in the Special Participant Bond
Reserve Account held on behalf of the District totaled $48,137,652 and
$58,050,189, respectively. Monies in this account are not considered to be District
funds. However, interest earnings on this account are used by the District to
reduce interest payments on the bonds outstanding.
Renewal and Extension Fund
All sums accumulated and retained in the Renewal and Extension Fund shall be
first used to prevent default in the payment of principal and interest on the bonds
when due and shall then be applied by the District for purposes pursuant to the
trust indenture. No monies have been deposited into this account at June 30, 2022.
Project Fund
The Project Funds for all bond issuances outstanding will be used for the purpose
of providing monies to pay project costs. The proceeds from the bonds and notes,
after a deposit into the Debt Service Reserve Fund for the amounts required
pursuant to the bond ordinances and note agreements of Series 2010B, 2012A,
2012B and 2013B bonds, shall be deposited into the Project Fund. At June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 73
and 2021, cash and investments in the Project Funds totaled $112,835,735 and
$92,415,533, respectively.
Rebate Fund
The bond ordinances provide for the creation of a Rebate Fund into which shall be
deposited such amounts as are required to be deposited therein pursuant to the
arbitrage instructions regarding the calculation and payment of rebate amounts
due. The District does not have any rights in or claims to such money; provided,
however, any funds remaining in the Rebate Fund after redemption and payment
of all bonds and payment of any rebatable arbitrage amount, or provision having
been made therefore, shall be remitted to the District. At June 30, 2022 and 2021,
cash and investments in the Rebate Fund totaled $228,446 and $228,349,
respectively.
Administrative Fee Fund
The Administrative Fee Fund will be used for the payment of the Trustee’s fees
and other administrative fees pursuant to the note agreement. The Trustee has
the ability to immediately withdraw the fee amounts when due. Monies held in
this account shall not be invested.
Pledged Revenues
The District pledges revenues to ensure the repayment of all outstanding revenue
bonds. These bonds’ proceeds are used for the District’s capital improvement and
replacement program and their repayment comes from, and is collateralized by,
the District’s wastewater revenues. These revenues are pledged through 2052 at
an approximate amount of $2.2 billion. The proportion of future pledged revenues
to future wastewater revenues is not estimable as annual total revenues fluctuate.
Principal and interest paid out during fiscal year 2022 was $123.9 million with
pledged revenues of $283.0 million. This provided a coverage ratio of 2.3 and
pledged revenues represented 61.8% of all net operating revenues.
Direct Borrowings and Direct Placements
For the fiscal years ending June 30, 2022 and 2021, the District had bonds and
notes from direct borrowings of $769,678,403 and $769,771,000, respectively.
Each series of the District’s subordinate debt evidence a loan from the Missouri
Department of Natural Resources. The net revenues of the wastewater system are
pledged to the payment of the subordinate debt; however, payment of the
subordinate debt from pledged revenues are junior and subordinate to the Senior
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 74
Bonds. The subordinate debt contain terms regarding events of default with
finance-related consequences that are classified as (1) delinquent or non-payment
of principal and interest payment on the District’s bonds, (2) failure to perform
obligations under the agreement with the bond purchaser, (3) misrepresentation
to the bond purchaser, and (4) bankruptcy.
The District’s Series 2018 Bond evidences a loan from the United States
Environmental Protection Agency. The net revenues of the wastewater system are
pledged to the payment of the Series 2018 Bond, which was issued as a Senior
Bond. The Series 2018 Bond contains terms regarding events of default with
finance-related consequences that are classified as (1) delinquent or non-payment
of principal and interest payment on the District’s bonds, (2) failure to perform
obligations under the agreement with the bond purchaser, (3) misrepresentation
to the bond purchaser, (4) bankruptcy, (5) covenant default, (6) judgments in excess
of $50,000,000 and (7) failure to maintain existence.
The District had direct placement bonds of $45,465,000 and $5,620,000 in the fiscal
years ending June 30, 2022 and 2021, respectively. In addition, the District had no
unused lines of credit and had no assets pledged as collateral for bonds from direct
placements in the fiscal years ending June 30, 2022 and 2021.
The District has authorized the issuance of Wastewater System Senior Refunding
Revenue Bonds, Direct Placement Series 2023A, Series 2025A and 2026A to be
issued on May 1, 2023, May 1, 2025, and May 1, 2026, respectively. The par amount
of the bonds will total $263,530,000. The Series 2023A and Series 2025A bonds will
be purchased by Morgan Stanley Municipal Funding, Inc. pursuant to the
Amended and Restated Forward Delivery Bond Purchase Agreement dated March
23, 2020 and the Series 2026A bonds will be purchased by Barclays Capital
pursuant to the Forward Delivery Bond Purchase Agreement dated October 6,
2021. Upon issuance, the District plans to use the proceeds of the bonds to refund
a portion of the outstanding Wastewater System Senior Revenue Bonds Series
2013B, Series 2015B and Series 2016B. Wastewater System Senior Refunding
Revenue Bonds, Direct Placement Series 2022A, was issued May 3, 2022, and the
$39,845,000 proceeds were used to partially refund the outstanding debt issues
2012A and 2012B. See the explanation for Series 2022A above for further
information. Wastewater System Senior Refunding Revenue Bonds, Direct
Placement Series 2021A, renamed Series 2021C due to the timing of their issuance,
was included in the original authorization, and was issued on May 3, 2021, and the
$5,620,000 proceeds were used to refund the outstanding Wastewater System
Senior Revenue Bonds Series 2011B. See the explanation for Series 2021C above
for further information.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 75
The Amended and Restated Forward Delivery Bond Purchase Agreement for the
Series 2023A, Series 2025A and Series 2026A Bonds contain terms regarding
events of default between closing and settlement with finance-related
consequences that are classified as (1) an event of default under other debt
instruments, (2) repudiation of the District’s obligations under the Agreement, (3)
dissolution, (4) bankruptcy, (5) consolidation or merger into another entity
resulting in materially weaker creditworthiness, (6) misrepresentation, (7)
significant rating downgrade or rating withdrawal or (8) refusal or inability of bond
counsel to deliver an opinion that the interest on the Bonds is excludable from
gross income for federal income tax purposes under the Internal Revenue Code of
1986, as amended, and is exempt from income taxation by the State of Missouri.
Upon the occurrence of an event of default the District may be required to make a
termination payment to the purchaser of the Bonds equal to fees and expenses,
and on demand of the purchaser, a make-whole termination payment.
8. Pension Plan
General Information About the Pension Plan
Pension Plan Description. The Metropolitan St. Louis Sewer District Employees’
Pension Plan (“Pension Plan”) is a noncontributory single employer defined benefit
plan providing retirement benefits as well as death and disability benefits. As a
condition of employment, all full-time employees of the District commencing
service prior to January 1, 2011, were eligible to be covered by the Pension Plan.
As of January 1, 2011, the Pension Plan was frozen to new employees. Instead,
new employees of the District may participate in The Metropolitan St. Louis Sewer
District Defined Contribution Plan (“DC Plan”) and/or The Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust. Current employees with
less than ten years of service on January 1, 2011, could also voluntarily elect to
transfer from the Pension Plan and enter the DC Plan.
Benefits Provided. All benefits vest after five years of credited service. Members
retiring at or after age 65 with five or more years credited service are entitled to a
pension benefit. The Pension Plan permits early retirement with reduced benefits
beginning at age 55 if the member has completed five years of employment.
Ordinance No. 10664 provides for unreduced retirement benefits to any member
whose combined age and term of service is equal to 75.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 76
Effective August 1, 2004, Ordinance No. 11781 amended the Pension Plan to
change the benefit formula to 1.7% of final average earnings plus 0.4% of final
average earnings that are in excess of covered earnings multiplied by the period of
years and months of credited service not to exceed 35 years without including
accrued sick leave. For vested employees who retire or die while in active service,
sick leave is paid out at 1.25% per year of service multiplied by the amount of the
unused accrued sick leave remaining at the employee’s current rate of pay, up to a
maximum of $50,000. Also, the Pension Plan was amended to provide the retiring
member with a 10% partial lump sum payment option. The balance of the
distribution will be paid in accordance with any one of the other payment options
available under the Pension Plan.
The retirement benefit payable to a member who retires after the normal
retirement date is the greater of a) the benefit that would have been payable on
the normal retirement date plus a special annual retirement benefit provided by
the accumulated value, at 4% per annum interest, of the monthly benefit that
would have been received prior to the postponed retirement date or b) the benefit
determined as of the postponed retirement date under the normal formula.
Effective August 27, 2011, Ordinance No. 13288 amended the Pension Plan to
include the following: “Upon termination or complete discontinuance of
contributions under the Pension Plan, the rights of all Members to benefits accrued
to the date of such termination or discontinuance shall be non-forfeitable, to the
extent then funded.”
Effective September 14, 2017, Ordinance No. 14776 amended the Pension Plan to
require enrollment in Medicare Parts A and B when Members first become eligible
for such Medicare programs due to disability in order to receive, or continue to
receive, retiree medical benefits under the Pension Plan and to clarify that any
retiree medical benefits under the Pension Plan will be secondary to Medicare
disability benefits in accordance with the Medicare secondary payor rules.
Effective February 14, 2019, Ordinance No. 15110 amended the Pension Plan to
update the language of Pension Plan benefits for death of a member after
retirement and retiree medical coverage.
Amounts in participants’ accounts are distributed upon retirement, death,
disability, or termination of employment. The normal form of retirement benefit
is either a lump sum payment or equal monthly installments.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 77
The Pension Plan reports financial data on a calendar year basis and issues a
publicly available financial report that includes audited financial statements and
required supplementary information. That report is available on the District’s
website at msdprojectclear.org and may be obtained by writing: The Metropolitan
St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
Employees Covered by Benefit Terms. At December 31, 2021, and 2020, the
financial reporting period of the Pension Plan, the following employees were
covered by the benefit terms:
Required Employer Contributions. The District’s employees do not contribute to
the Pension Plan. Ordinances establishing the Pension Plan provide for
actuarially determined annual contributions, paid solely by the District, that are
sufficient to pay benefits when due. The Entry Age Normal actuarial funding
method is used to determine contributions.
Contributions of $12,243,539 and $12,771,525, excluding certain professional fees
paid by the District, were made to the Pension Plan during the District’s fiscal
years ended June 30, 2022, and 2021, respectively. These contributions were made
in accordance with actuarially determined contribution requirements based on
actuarial valuations performed at December 31, 2021, and 2020, respectively.
Net Pension Liability
The net pension liability was measured as of December 31, 2021, and 2020 and the
total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of that date.
Actuarial Assumptions. The total pension liability in the December 31, 2021, and
2020 actuarial valuations were determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Increase
2021 2020 (Decrease)
Active plan members 396 450 (54)
Retirees and beneficiaries currently receiving benefits 841 800 41
Terminated members entitled to receive benefits 164 172 (8)
Total 1,401 1,422 (21)
As of December 31,
Inflation 2.50 percent
Salary Increases 4.25 percent, average, including inflation
Investment Rate of Return 6.25 and 6.75 percent, net of pension plan investment expense,
including inflation for years ended December 31, 2021 and 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 78
Effective December 31, 2021, and December 31, 2020, for current employees,
healthy retirees, disabled retirees and contingent survivors, mortality rates were
based on the Pub-2010 General Amount-Weighted Mortality Tables, male and
female rates, with generational projection from 2010 using MP-2021 and MP-2020
improvement scale (improvement scale updates published annually), respectively.
The actuarial assumptions are based on prior and current year experiences.
Long-Term Expected Rate of Return. The long-term expected rate of return is
determined by adding expected inflation to expected long-term real returns and
reflecting expected volatility and correlation. The capital market assumptions at
December 31, 2021, and 2020 are as follows:
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
Large Cap US Equity 25.0% 4.0%
Domestic Core Bonds 14.0% -0.2%
Core "Plus" Bonds 13.0% 0.4%
Real Estate 12.0% 2.7%
Developed International Equity 12.0% 5.0%
Small Cap US Equity 10.0% 4.5%
Global Fixed Income 8.0% 3.4%
Emerging Markets Equity 6.0% 5.6%
Total 100.0%
December 31, 2021
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
Large Cap US Equity 25.0% 4.2%
Domestic Core Bonds 14.0% 0.1%
Core "Plus" Bonds 13.0% 0.7%
Real Estate 12.0% 2.9%
Developed International Equity 12.0% 5.0%
Small Cap US Equity 10.0% 4.7%
Global Fixed Income 8.0% 3.5%
Emerging Markets Equity 6.0% 5.2%
Total 100.0%
December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 79
Discount Rate. The discount rate used to measure the total pension liability at
December 31, 2021, and 2020, was 6.25 and 6.75 percent, respectively. The
Pension Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to
the long-term expected rate of return.
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2020 356,407,862$ 326,912,684$ 29,495,178$
Changes for the year:
Service cost 4,477,486 — 4,477,486
Interest 23,673,688 — 23,673,688
Effect of economic/demographic gains or losses 1,563,845 — 1,563,845
Effect of assumptions changes or inputs 18,787,548 — 18,787,548
Benefit payments (20,665,530) (20,665,530) —
Employer contributions — 12,144,484 (12,144,484)
Net investment income — 31,982,205 (31,982,205)
Balances as of December 31, 2021 384,244,899$ 350,373,843$ 33,871,056$
Changes in Net Pension Liability for the Year Ending December 31, 2021
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2019 353,995,560$ 296,202,647$ 57,792,913$
Changes for the year:
Service cost 4,832,125 — 4,832,125
Interest 23,581,022 — 23,581,022
Effect of economic/demographic gains or losses (6,727,748) — (6,727,748)
Effect of assumptions changes or inputs — — —
Benefit payments (19,273,097) (19,273,097) —
Employer contributions — 13,398,565 (13,398,565)
Net investment income — 36,584,569 (36,584,569)
Balances as of December 31, 2020 356,407,862$ 326,912,684$ 29,495,178$
Changes in Net Pension Liability for the Year Ending December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 80
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The
following presents the net pension liability calculated using the 6.25 and 6.75
percent discount rate for December 31, 2021, and December 31, 2020, respectively,
as well as what the District’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage-point lower or 1-percentage-point higher
than the current rate for each year:
Pension Plan Fiduciary Net Position. Fiduciary net position is the fair value of all
plan assets. Net pension liability is the plan’s total pension liability less its
fiduciary net position, i.e., the plan’s unfunded accrued liability.
Pension Expense and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
For the years ended June 30, 2022, and 2021, the District recognized pension
expense of $9,141,638 and $5,192,722, respectively, after accounting for all
deferred outflows and inflows of resources. The District reported pension-related
deferred outflows of resources and deferred inflows of resources from the following
sources:
1% Current 1%
Decrease Discount Rate Increase
(5.25%) (6.25%) (7.25%)
Net Pension Liability 76,413,375$ 33,871,056$ (2,259,652)$
December 31, 2021
1% Current 1%
Decrease Discount Rate Increase
(5.75%) (6.75%) (7.75%)
Net Pension Liability 68,384,716$ 29,495,178$ (3,623,239)$
December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 81
In the years ending June 30, 2022, and 2021, amounts currently reported as
deferred outflows of resources, $6,605,179 and $6,506,124, respectively, related to
the District’s contributions subsequent to the measurement date will be recognized
as a reduction of the net pension liability in the years ended June 30, 2023, and
2022, respectively.
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Payable to The Pension Plan
At June 30, 2022, and 2021, the District did not have outstanding required
contributions to the Pension Plan.
9. Fiduciary Pension Trust Fund Cash and Investments
The Metropolitan St. Louis Sewer District Employees’ Pension Plan (“Pension
Plan”) is reported as a Fiduciary Pension Trust Fund. The Plan reports financial
data on a calendar year basis and issues a publicly available financial report with
audited financial statements which can be found on the District’s
www.msdprojectclear.org website or may be obtained by writing: The
Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual experience 912,243$ 1,744,230$ —$ 5,077,158$
Changes of assumptions 10,959,403 — 3,970,296 —
Net difference between projected and actual earnings — 21,449,794 — 17,594,240
Contributions made subsequent to measurement date 6,605,179 — 6,506,124 —
Total 18,476,825$ 23,194,024$ 10,476,420$ 22,671,398$
June 30, 2022 June 30, 2021
Net Deferrals of
Resources
Year ended June 30,:
2023 2,944,605$
2024 (6,792,974)
2025 (5,421,444)
2026 (2,052,565)
(11,322,378)$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 82
2555. The cash and investment information for this plan is included below and the
fair value measurement and application is included in note 17.
Categories of Asset Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the
Plan’s investment in a single issuer. Pursuant to Resolution 3597, the Pension
Plan is authorized to invest in the following:
Equity Investments: Common stocks of corporations, mutual funds, or co-
mingled equity funds (Domestic and International, target range 6% to 25%,
allowable range 2% to 30%).
Fixed Income Investments: U.S. government and agency securities,
corporate bonds, debentures, notes, or other evidence of indebtedness
assumed or guaranteed by corporations (Domestic and International, target
range 8% to 14%, allowable range 3% to 19%).
Short-term Securities: Commercial paper, treasury bills, certificates of
deposit, and/or money market funds.
Real Estate Investments: Real estate investment trusts and multi-employer
property trusts (Target range 12%, allowable range 0% to 15%).
Hedge Funds, Global Tactical, Real Assets, Market Neutral, and Absolute
Return Investments; these investment strategies help diversify the
investment portfolio.
The fair value of investments managed consisted of the following:
As of December 31,
2021 2020
Investments, at Fair Value
Collective Investment Funds 185,031,152$ 171,767,753$
Mutual Funds 62,608,137 60,179,174
Real Estate Investments 29,021,383 30,265,219
Corporate Obligations 27,025,796 27,630,867
Domestic Common Stocks 21,934,156 18,552,256
US Treasury and Agency Obligations 19,727,449 13,994,724
Money Market Funds 3,666,492 3,237,837
Municipal Obligations 1,370,872 1,292,527
Total Investments 350,385,437$ 326,920,357$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 83
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. The Pension Plan does not have a formal investment
policy that limits investment maturities as a means of managing its exposure to
interest rates. The Pension Plan had the following debt securities and maturities:
The Pension Plan will minimize the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates by:
As of December 31, 2020
Weighted
Average
Maturity
Investment Type Fair Value (in Years)
Corporate Obligations 27,630,867$ 3.92
U.S. Treasury and Agency Obligations 13,994,724 5.46
Municipal Obligations 1,292,527 3.57
Total 42,918,118$
Portfolio Weighted Average Maturity in Years 4.42
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 84
Structuring the investment portfolio so that securities mature to meet cash
requirements for benefit payments, thereby avoiding the need to sell
securities on the open market prior to maturity; and
Monitoring fixed income investment managers’ performances to be sure the
fixed income portion of the investment portfolio is managed to
predetermined indexes.
Credit Risk
Investment credit risk is the risk that the issuer or other counterparty to an
investment will not fulfill its obligations. The Pension Plan does not have a formal
credit risk policy. The Pension Plan will minimize credit risk by:
Pre-qualifying the financial institutions, broker/dealers, intermediaries,
and advisors with which the Pension Plan will do business; and
Diversifying the portfolio so that potential losses on individual securities
will be minimized.
The following tables provide information on the credit ratings associated
with the Pension Plan’s investments in debt securities:
U.S. Treasury
S & P & Agency Municipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ —$ 3,746,560$ 3,746,560$
AA 19,727,449 981,242 998,815 21,707,506
A — 219,601 5,991,808 6,211,409
BBB — 30,684 11,176,202 11,206,886
BB — — 206,003 206,003
Not Rated — 139,345 4,906,408 5,045,753
Total 19,727,449$ 1,370,872$ 27,025,796$ 48,124,117$
Credit Rating by Investment as of December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 85
Investments Greater Than 5% of Net Position Restricted for Pension
Benefits or Total Investments
Investments that exceed 5% of net position restricted for pension benefits or total
investments at December 31, 2021 or 2020 are as follows:
10. Fiduciary Pension Trust Fund Fair Value Measurement and
Application
The Pension Plan categorizes its fair value measurements within the fair value
hierarchy established by U.S. generally accepted accounting principles. The
hierarchy is based on the valuation inputs used to measure the fair value of the
asset and give the highest priority to unadjusted quoted process in active markets
for identical assets or liabilities and the lowest priority to unobservable inputs. The
Pension Plan had the following fair value measurements of invested assets as of
December 31, 2021 and December 31, 2020:
U.S. Treasury
S & P & Agency Municipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ —$ 3,328,025$ 3,328,025$
AA 13,994,724 1,039,765 876,954 15,911,443
A — 221,605 5,645,923 5,867,528
BBB — 31,157 12,531,702 12,562,859
BB — — 221,720 221,720
Not Rated — — 5,026,543 5,026,543
Total 13,994,724$ 1,292,527$ 27,630,867$ 42,918,118$
Credit Rating by Investment as of December 31, 2020
2021 2020
BlackRock Russell 1000 Index Non-Lendable Fund 92,394,458$ 26.4 % 83,783,652$ 25.9 %
Prudential Core Plus Bond Fund 45,880,955 13.1 40,461,722 12.5
Morgan Stanley International Equity Fund I 41,919,939 12.0 40,216,372 12.4
UBS Trumbull Property Fund 29,022,521 8.3 30,265,219 9.3
Brandywine Global Opportunistic Fixed Income 25,976,417 7.4 27,297,538 8.4
Kennedy Mid Cap Value 22,776,255 6.5 18,571,060 5.7
Morgan Stanley Emerging Markets Fund I 20,688,321 5.9 19,962,802 6.2
TimesSquare Small Cap Growth Fund 19,581,409 5.6 19,005,439 5.9
December 31,
% %
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 86
Investments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level 12/31/2021 (Level 1) (Level 2) (Level 3)
Debt Securities:
Corporate Obligations 27,025,796$ —$ 27,025,796$ —$
US Treasury Notes and Bonds 13,576,666 13,576,666 — —
US Government Agency Obligations 6,150,783 — 6,150,783 —
Municipal Obligations 1,370,872 — 1,370,872 —
Total Debt Securities 48,124,117 13,576,666 34,547,451 —
Equity Securities:
Domestic Equities 21,934,156 21,934,156 — —
International Equities 41,919,816 — 41,919,816 —
Emerging Markets Fund 20,688,321 — 20,688,321 —
Total Equity Securities 84,542,293 21,934,156 62,608,137 —
Total Investments by Fair Value Level 132,666,410 35,510,822$ 97,155,588$ —$
Unfunded Redemption Redemption
Investments Measured at the Net Asset Value (NAV) Commitments Frequency Notice Period
Domestic Equities (1)111,961,752 — Daily Varies
Core Plus Bond Commingled Trust Fund (2)45,880,947 — Daily 1 Day
Real Estate Funds (3)29,021,383 — Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)25,976,417 — Daily 10 Days
Diversified Hedge Fund of Fund (5)1,212,036 — Quarterly 90 Days
Total Investments Measured at the Net Asset Value 214,052,535
Money Market at Amortized Cost 3,666,492
Total Investments at Fair Value 350,385,437$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 87
(1) Domestic Equities – These funds seek long-term capital appreciation through passive or active
management of equity securities listed on U.S. stock exchanges. Redemption is daily and the
notice period is two days or less.
(2) Core Plus Bond Commingled Trust Fund – Seeks to outperform the Barclays Capital U.S.
Aggregate Bond Index by investing primarily in fixed income securities in the U.S. investment
grade sectors, as well as U.S. fixed income securities below investment grade, the debt of
developed international markets, and the debt of emerging markets. Redemption is daily with a
1-day notice.
(3) Real Estate Funds – The portfolio assets in this investment consist primarily of high-quality
real estate investments located in major markets throughout the U.S. and are diversified by
property type, geographic region and economic sector. The majority of the investments are
Investments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level 12/31/2020 (Level 1) (Level 2) (Level 3)
Debt Securities:
Corporate Obligations 27,630,867$ —$ 27,630,867$ —$
US Treasury Notes and Bonds 8,491,150 8,491,150 — —
US Government Agency Obligations 5,503,574 — 5,503,574 —
Municipal Obligations 1,292,527 — 1,292,527 —
Total Debt Securities 42,918,118 8,491,150 34,426,968 —
Equity Securities:
Domestic Equities 18,552,256 18,552,256 — —
International Equities 40,216,372 — 40,216,372 —
Emerging Markets Fund 19,962,802 — 19,962,802 —
Total Equity Securities 78,731,430 18,552,256 60,179,174 —
Total Investments by Fair Value Level 121,649,548 27,043,406$ 94,606,142$ —$
Unfunded Redemption Redemption
Investments Measured at the Net Asset Value (NAV) Commitments Frequency Notice Period
Domestic Equities (1)102,789,091 — Daily Varies
Core Plus Bond Commingled Trust Fund (2)40,461,722 — Daily 5 Days
Real Estate Funds (3)30,265,219 — Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)27,297,538 — Daily 10 Days
Diversified Hedge Fund of Fund (5)1,219,402 — Quarterly 90 Days
Total Investments Measured at the Net Asset Value 202,032,972
Money Market at Amortized Cost 3,237,837
Total Investments at Fair Value 326,920,357$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 88
stable, primarily income-oriented properties. The fair values of the investments in this type have
been determined using the NAV per share (or its equivalent) of the investments. The District
has elected to liquidate holdings in the UBS Trumbull Property Fund. Redemption requests
from fund investors currently exceed the amount available for redemption. Redemptions are
calculated on a pro rata basis according to the ratio of the requesting investor's units to the total
of all investors then requesting redemptions. Any redemption request that is not fully honored
will be deemed effective in following quarters until completed.
(4) Global Fixed Income Collective Trust Fund – This fund invests in sovereign debt and
currencies of countries in its benchmark index, the investment-grade corporate bond and
mortgage-backed securities markets in those countries, as well as, to limited degrees, emerging
market, high yield debt, and securities of countries rated A or better by a nationally recognized
statistical rating organization. Redemption is daily with a 10-day notice.
(5) Diversified Hedge Fund of Fund – Seeks return, long-term capital growth and diversification
through a combination of Managers trading a range of strategies, including, but not limited to,
hedging, distressed securities, arbitrage and special situations. The fair values of the
investments in this type have been determined using the NAV per share (or its equivalent) of
the investments. The District’s remaining investment in this fund is limited to its pro rata
interest in Peruvian sovereign bonds held through an investment in the Fund, whose advisor
has endeavored to sell said interest, on a best efforts’ basis, and distribute any proceeds to
shareholders.
11. Other Retirement Plans
Deferred Compensation Plan and Trust
The District offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust (“Plan”), available to all
District employees, permits them to defer a portion of their salary up to Internal
Revenue Code limits. The District does not contribute to the Plan except where
mandated by the Internal Revenue Service to compensate participants for lost
deferral contributions. The deferred compensation is not available to employees
until termination, retirement, death, disability or due to financial hardship as
defined by the Plan.
2021 2020
BlackRock Russell 1000 Index Non-Lendable Fund 92,394,458$ 26.4 % 83,783,652$ 25.9 %
Prudential Core Plus Bond Fund 45,880,955 13.1 40,461,722 12.5
Morgan Stanley International Equity Fund I 41,919,939 12.0 40,216,372 12.4
UBS Trumbull Property Fund 29,022,521 8.3 30,265,219 9.3
Brandywine Global Opportunistic Fixed Income 25,976,417 7.4 27,297,538 8.4
Kennedy Mid Cap Value 22,776,255 6.5 18,571,060 5.7
Morgan Stanley Emerging Markets Fund I 20,688,321 5.9 19,962,802 6.2
TimesSquare Small Cap Growth Fund 19,581,409 5.6 19,005,439 5.9
December 31,
% %
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 89
At June 30, 2022 and 2021, the District had outstanding liabilities owed to the
Plan of $192,964 and $176,954, respectively.
The Plan was amended and restated to comply with the Economic Growth and Tax
Relief Reconciliation Act of 2001 (“Act”). The Act made significant changes to
Section 457(b) of the Internal Revenue Code of 1986, as previously amended. The
Plan assets are held in trust for the exclusive benefit of participants and their
beneficiaries under Section 1448 of the Small Business Job Protection Act of 1996.
As a result, the assets and liabilities of the Plan are not included in the
accompanying financial statements.
The Metropolitan St. Louis Sewer District Deferred Compensation Plan and Trust
issues a publicly available financial report that includes audited financial
statements and supplementary information. That report is available on the
District’s website at msdprojectclear.org and may be obtained by writing: The
Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-
2555.
Defined Contribution Plan
The Metropolitan St. Louis Sewer District Defined Contribution Plan (“DC Plan”)
was established by the District’s Board of Trustees, through Ordinance 13180,
which became effective January 1, 2011. The following full time employees are
eligible to participate in the DC Plan: (i) employees first hired on or after January
1, 2011, and (ii) employees hired prior to January 1, 2011 who elected to terminate
participation in The Metropolitan St. Louis Sewer District Employees’ Pension Plan
(“Pension Plan”), effective as of April 1, 2011, in accordance with the provisions of
such Pension Plan, and (iii) employees rehired on or after January 1, 2011 who are
not eligible to accrue benefits under the Pension Plan. An employee shall become
a participant in the DC Plan on the first day on which he or she performs an hour
of service for the District. The District’s Board of Trustees, primarily to improve
benefits to members, amends the DC Plan in all its respects. A pension committee
consisting of two members of the District’s Board of Trustees, two elected employee
members and four members of the District’s management staff administer the DC
Plan. A committee of the District’s Board of Trustees, with the aid of an
investment advisor, reviews and evaluates the DC Plan’s investment options and
the related rates of return on a periodic basis.
This DC Plan is intended to provide a means whereby the District may provide
retirement benefits to eligible employees and encourage such employees to
establish a regular method of savings, thereby providing a measure of financial
security for such employees and their beneficiaries upon retirement or in the event
of death or disability. All assets of the DC Plan are the sole property of the DC
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 90
Plan and are not subject to the claims of creditors of the District and the assets
and liabilities of the DC Plan are not included in the accompanying financial
statements.
Employer Basic Contributions: For each payroll period, the District contributes an
amount equal to 7% of the covered compensation earned during such period by
each participant entitled to an allocation of such contribution. Upon a participant’s
severance from service, the unvested amount credited to his/her individual account
shall be forfeited and credited to the Employer Basic Contributions account and
shall be used to reduce future Employer Basic Contributions. If a participant is
rehired before incurring two consecutive years break in service, the amount
previously forfeited will be restored. If rehired after two consecutive years of break
in service, the amounts previously forfeited will not be restored.
Employer Matching Contributions: For each payroll period, the District
contributes an amount equal to 50% of the covered compensation of such
participant withholding as an annual deferral (as defined in The Metropolitan
St. Louis Sewer District Deferred Compensation Plan and Trust) pursuant to The
Metropolitan St. Louis Sewer District Deferred Compensation Plan and Trust;
provided that, before-tax contributions in excess of 4% of the covered compensation
of the participant for the payroll period shall not be considered for purposes of
Employer Matching Contributions. Employer Matching Contributions shall be up
to the maximum amount of compensation that may be taken into account for the
DC Plan year and the amount credited to the participant’s Employer Matching
Contributions Account shall be fully vested at all times.
In no event shall the sum of the employer contributions and employee
contributions allocated to the account of a participant for the DC Plan year exceed
the lesser of:
(a) The amount specified in the applicable Internal Revenue Code, as
adjusted annually for any applicable increases in the cost of living;
(b) 100% of the participant’s compensation for such year.
The compensation limit referred to in (b) shall not apply to any contribution from
medical benefits after separation from service.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 91
The District’s contributions to the DC Plan amounted to $3,034,606 and $2,816,157
for the years ended June 30, 2022 and 2021, respectively. Forfeitures were
$214,069 and $99,855, for the years ended June 30, 2022 and 2021, respectively,
and the balances in the prepaid forfeitures account as of June 30, 2022 and 2021
were $17,508 and $6,097, respectively. At June 30, 2022 and 2021, the District
had outstanding liabilities owed to the DC Plan of $118,731 and $101,147,
respectively.
Vesting: As of any time before the normal retirement age of a participant, the first
day of the month coinciding with or next following a person’s sixty-fifth birthday
and completion of sixty months of continuous service (other than upon death or
permanent disability), the vested percentage of the amounts credited to the
participant’s Employer Basic Contributions account shall be determined in
accordance with the following schedule:
Months Of
Continuous Service
Vested (Non-
Forfeitable)
Percentage
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The Metropolitan St. Louis Sewer District Defined Contribution Plan issues a
publicly available financial report that includes audited financial statements and
supplementary information. That report is available on the District’s website at
msdprojectclear.org and may be obtained by writing: The Metropolitan St. Louis
Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
12. Postemployment Benefits Other Than Pensions (“OPEB”)
General Information About The OPEB Plan
Plan Description. The District’s defined benefit OPEB plan, The Metropolitan St.
Louis Sewer District Retiree Medical Coverage Plan (“OPEB Plan”), provides
retiree medical coverage for all permanent full-time employees who retire from the
District on or after age 62 with five years of service or whose age plus years of
service equal 75 points (“Rule of 75”) as part of a total compensation package
effective August 1, 2004 for general employees and, with respect for union
members, the later of August 1, 2004 or the date of union ratification of a
Memorandum of Understanding with respect to this Plan modification. The OPEB
Plan is a single employer defined benefit OPEB plan administered by the District.
The OPEB Plan was established by Ordinance No. 9826 and became effective
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 92
January 1, 1996. This ordinance has been repealed and new ordinances enacted
in lieu thereof with Ordinance No. 15109 covering defined contribution retirees
and Ordinance No. 15110 covering defined benefit retirees, both of which were
adopted on February 14, 2019, being the most current ordinances covering the
OPEB Plan in its entirety. The District offers two medical plan options, a
traditional open access plan and a high deductible health plan, and both plans offer
wellness rates for those employees who qualify. No assets are accumulated in a
trust that meets the criteria in paragraph 4 of GASB Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pension (“GASB
Statement No. 75”).
Benefits Provided. The OPEB Plan provides healthcare for qualified retirees and
their dependents. The District pays the same amount of the monthly group health
insurance premium for the qualified retiree as it would for an active single
employee until the retiree becomes eligible for Medicare at age 65.
In the last six months of fiscal year 2022 the monthly amount the District paid
towards the retiree’s premium was $647.22 for retirees qualifying for the wellness
incentive ($658.06 for retirees with wellness qualified spouse). The $647.22 paid
by the District equates to 86% of the traditional plan’s premium and 92% of the
high deductible plan’s premium. For retirees not qualifying for the wellness
incentive, the District paid $603.89 of the premium which equates to 80% for the
traditional plan and 86% for the high deductible plan. The retiree paid 100% of the
spousal, children or family premium incremental increases in addition to the
remaining 8-20% of the retiree’s total monthly premium. The OPEB Plan also
provided life insurance coverage for a very small closed group of disabled former
employees.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 93
The monthly premiums for calendar year 2022 plans and coverage tiers are as
follows:
In fiscal year 2021, and in the first six months of fiscal year 2022, the monthly
amount the District paid towards the retiree’s premium was $610.52 for retirees
qualifying for the wellness incentive ($621.36 for retirees with wellness qualified
spouse). The $610.52 paid by the District equates to 86% of the traditional plan’s
premium and 93% of the high deductible plan’s premium. For retirees not
qualifying for the wellness incentive, the District paid $567.19 of the premium
which equates to 80% for the traditional plan and 86% for the high deductible plan.
The retiree paid 100% of the spousal, children or family premium incremental
increases in addition to the remaining 7-20% of the retiree’s total monthly
premium. The OPEB Plan also provided life insurance coverage for a very small
closed group of disabled former employees.
Total Retiree OPEB Benefit Net Cost
Coverage Tier Premium Paid by District to Retiree
Traditional Plan with wellness incentive
Retiree 754.86$ 647.22$ 107.64$
Retiree + Spouse 1,608.07 658.06 950.01
Retiree + Child(ren) 1,461.10 647.22 813.88
Retiree + Family 2,228.70 658.06 1,570.64
Traditional Plan with no wellness incentive
Retiree 754.86 603.89 150.97
Retiree + Spouse 1,608.07 603.89 1,004.18
Retiree + Child(ren) 1,461.10 603.89 857.21
Retiree + Family 2,228.70 603.89 1,624.81
High Deductible Plan with wellness incentive
Retiree 702.36 647.22 55.14
Retiree + Spouse 1,496.18 658.06 838.12
Retiree + Child(ren) 1,359.44 647.22 712.22
Retiree + Family 2,073.62 658.06 1,415.56
High Deductible Plan with no wellness incentive
Retiree 702.36 603.89 98.47
Retiree + Spouse 1,496.18 603.89 892.29
Retiree + Child(ren) 1,359.44 603.89 755.55
Retiree + Family 2,073.62 603.89 1,469.73
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 94
The monthly premiums for calendar year 2021 plans and coverage tiers are as
follows:
The ordinance establishing the OPEB Plan assigned the authority to establish and
amend OPEB Plan benefit provisions to the District. The contribution
requirements of the District and OPEB Plan members are established by the
District and may be amended by the District. The OPEB Plan does not issue a
publicly available report.
Employees Covered by Benefit Terms. At June 30, 2022 and 2021, the following
employees were covered by the benefit terms:
Total Retiree OPEB Benefit Net Cost
Coverage Tier Premium Paid by District to Retiree
Traditional Plan with wellness incentive
Retiree 708.99$ 610.52$ 98.47$
Retiree + Spouse 1,510.35 621.36 888.99
Retiree + Child(ren) 1,372.31 610.52 761.79
Retiree + Family 2,093.26 621.36 1,471.90
Traditional Plan with no wellness incentive
Retiree 708.99 567.19 141.80
Retiree + Spouse 1,510.35 567.19 943.16
Retiree + Child(ren) 1,372.31 567.19 805.12
Retiree + Family 2,093.26 567.19 1,526.07
High Deductible Plan with wellness incentive
Retiree 659.68 610.52 49.16
Retiree + Spouse 1,405.26 621.36 783.90
Retiree + Child(ren) 1,276.83 610.52 666.31
Retiree + Family 1,947.61 621.36 1,326.25
High Deductible Plan with no wellness incentive
Retiree 659.68 567.19 92.49
Retiree + Spouse 1,405.26 567.19 838.07
Retiree + Child(ren) 1,276.83 567.19 709.64
Retiree + Family 1,947.61 567.19 1,380.42
June 30, 2022 June 30, 2021
Inactive employees or beneficiaries currently receiving benefit payments 118 117
Active employees 916 956
Total 1,034 1,073
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 95
Total OPEB Liability
The District’s total OPEB liability measured as of December 31, 2021, and
December 31, 2020, was $26,793,582 and $24,920,628, respectively. The District’s
total OPEB liabilities for both years were determined based on an actuarial
valuation dates, June 30, 2021 and June 30, 2019, respectively, and were
calculated based on the discount rates and actuarial assumptions below and were
then projected forward to the measurement dates. There have been no significant
changes between the valuation dates of June 30, 2021 and June 30, 2019,
respectively, and the reporting fiscal year end dates of June 30, 2022, and June 30,
2021.
Actuarial Assumptions and Other Inputs. The total OPEB liabilities based on the
June 30, 2021 and June 30, 2019 actuarial valuation were determined using the
following actuarial assumptions and other inputs, applied to all periods included
in the measurement, unless otherwise specified:
The discount rate was based on the 20 Year Bond General Obligation Index.
Mortality rates were based on the Pub-2010 General Amount-Weighted Mortality
Tables for Employees, Healthy Retirees, Disabled Retirees and Contingent
Survivors, male and female rates, with generational projection from 2010 using
the MP-2021 scale for the measurement date of December 31, 2021 and using the
MP-2020 scale for the measurement date of December 31, 2020.
The actuarial assumptions are based on prior and current year experiences. The
plan has not had a formal actuarial experience study performed.
Inflation 2.50 percent
Healthcare cost trend rates 5.70 percent for 2021, gradually decreasing to an ultimate rate of 3.70
percent for 2073 and beyond
Salary increases 4.25 percent, average, including inflation
Retiree's share of benefit-
related costs
8 - 20 percent and 7-20 percent of projected health insurance premiums
for retirees depending on plan selected (traditional or high deductible)
and wellness qualification for 2022 and 2021, respectively
Discount rate 2.06 percent for December 31, 2021
2.12 percent for December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 96
Changes in the Total OPEB Liability
Changes of assumptions or other inputs reflect a change in the discount rate from
2.12 percent in 2020 to 2.06 percent in 2021 and the change in mortality
assumptions referenced above.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The
following presents the total OPEB liability of the District as of December 31, 2021,
calculated using the discount rate of 2.06%, as well as what the District’s total
OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (1.06%) or 1-percentage-point higher (3.06%) than the
current discount rate.
The following presents the total OPEB liability of the District as of December 31,
2020, calculated using the discount rate of 2.12%, as well as what the District’s
total OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (1.12%) or 1-percentage-point higher (3.12%) than the
current discount rate.
Changes in the Total OPEB Liability for the Years Ending
Increase (Decrease)
December 31, 2021 December 31, 2020
Total OPEB Liability Beginning Balance 24,920,628$ 23,164,618$
Changes for the year:
Service cost 2,106,855 1,826,622
Interest on total OPEB liability 553,336 662,562
Effect of plan changes — —
Effect of economic/demographic gains or losses 533,798 —
Changes of assumptions or other inputs 542,115 898,156
Benefit payments (1,863,150) (1,631,330)
Net changes 1,872,954 1,756,010
Total OPEB Liability Ending Balance 26,793,582$ 24,920,628$
1% Current 1%
Decrease Discount Rate Increase
(1.06%) (2.06%) (3.06%)
Total OPEB Liability 28,436,953$ 26,793,582$ 25,217,639$
December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 97
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend
Rates. The following presents the total OPEB liability of the District as of
December 31, 2021, calculated using the current range of healthcare cost trend
rates, as well as what the District’s total OPEB liability would be if it were
calculated using the range of healthcare cost trend rates that were 1-percentage-
point lower (4.70% decreasing to 2.70%) or 1-percentage-point higher (6.70%
decreasing to 4.70%) than the current range of healthcare cost trend rates of 5.70%
decreasing to 3.70%.
The following presents the total OPEB liability of the District as of December 31,
2020, calculated using the current range of healthcare cost trend rates, as well as
what the District’s total OPEB liability would be if it were calculated using the
range of healthcare cost trend rates that were 1-percentage-point lower (3.90%
decreasing to 2.70%) or 1-percentage-point higher (5.90% decreasing to 4.70%)
than the current range of healthcare cost trend rates of 4.90% decreasing to 3.70%.
1% Current 1%
Decrease Discount Rate Increase
(1.12%) (2.12%) (3.12%)
Total OPEB Liability 26,426,249$ 24,920,628$ 23,475,956$
December 31, 2020
Current
Healthcare
Cost Trend
1% Decrease Rates 1% Increase
(4.70% (5.70% (6.70%
decreasing decreasing decreasing
to 2.70%) to 3.70%) to 4.70%)
Total OPEB Liability 24,033,084$ 26,793,582$ 30,064,474$
December 31, 2021
Current
Healthcare
Cost Trend
1% Decrease Rates 1% Increase
(3.90% (4.90% (5.90%
decreasing decreasing decreasing
to 2.70%) to 3.70%) to 4.70%)
Total OPEB Liability 22,177,915$ 24,920,628$ 28,178,622$
December 31, 2020
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 98
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to OPEB
For the years ended June 30, 2022 and 2021, the District recognized OPEB expense
of $2,606,467 and $2,343,501, respectively. At June 30, 2022 and 2021, the District
reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
In the years ending June 30, 2022 and 2021, amounts currently reported as
deferred outflows of resources, $926,270 and $862,060, respectively, related to the
District’s benefit payments subsequent to the measurement date will be recognized
as a reduction of the total OPEB liability in the years ended June 30, 2023 and
2022, respectively.
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual experience 488,174$ 2,858,373$ —$ 3,201,103$
Changes of assumptions or other inputs 2,873,737 587,130 2,674,856 686,982
Benefit payments made subsequent to measurement date 926,270 — 862,060 —
Total 4,288,181$ 3,445,503$ 3,536,916$ 3,888,085$
June 30, 2022 June 30, 2021
Net Deferrals of
Resources
Year ended June 30:
2023 (53,724)$
2024 (53,724)
2025 (53,724)
2026 (53,724)
2027 (53,724)
Thereafter 185,028
(83,592)$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 99
13. Self-Insurance Programs
The District is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The District has established a risk management program and retains
the risk related to its obligation to provide workers' compensation and medical and
hospitalization benefits to its employees; and to pay water backup claims to its
customers. The estimated liabilities for payment of incurred (both reported and
unreported) but unpaid claims relating to these matters are included as a
component of current deposits and accrued expenses, and as such, are expected to
be paid within one year of the date of the Statement of Net Position. At June 30,
2022 and 2021, these liabilities amounted to $5,057,417 and $5,148,770,
respectively.
The claims liabilities reported are based on the requirements of GASB Statement
No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if
information obtained prior to the issuance of the financial statements indicates it
is probable that a liability has been incurred and the amount of the liability can be
reasonably estimated. Changes in the balance of claims liabilities during fiscal
2022, 2021, and 200 were as follows:
The District obtains periodic funding valuations from the third-party
administrators managing the self-insurance programs and adjusts the charges as
required to maintain the appropriate level of estimated claims liability. The
District also maintains excess liability insurance coverage for workers'
compensation and medical and hospitalization claims; general liability; and water
backup damage to customers’ property.
The District purchases commercial insurance for all other risks of loss. Settled
claims have not exceeded this commercial coverage in any of the past three years.
2022 2021 2020
Liability - Beginning of Year 5,148,770$ 4,755,168$ 7,920,684$
Current year claims and changes in estimates 16,230,426 17,588,499 18,916,140
Claim payments (16,321,779) (17,194,897) (22,081,656)
Liability - End of Year 5,057,417$ 5,148,770$ 4,755,168$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 100
14. Closure and Post-Closure Care Costs
State and federal laws and regulations require the District to place a final cover
on its Prospect Hill Reclamation Project landfill site when it stops accepting waste
and to perform certain maintenance and monitoring functions at the site for 30
years after closure. Although closure and post-closure care costs will be paid only
near or after the date that the landfill stops accepting waste, the District reports
a portion of these closure and post-closure care costs as an operating expense in
each fiscal year. The $750,948 and $686,968 reported as landfill closure and post-
closure care liabilities at June 30, 2022 and 2021, respectively, represent the
cumulative amounts reported at fiscal year-end and represent 76.7% of the
estimated closure and post-closure care costs of the landfill for fiscal years ended
June 30, 2022 and 2021. These amounts are based on what it would cost to perform
all closure and post-closure care in 2022 and 2021, respectively.
The remaining disposal life estimate was calculated in 2009 and was estimated at
eight years factoring in a future annual average disposal rate of 96,500 cubic yards.
It was noted in the 2009 Black and Veatch study that this life could be extended
further if the actual disposal rate is less than projected or alternative uses and off-
site beneficial options for the incinerator ash are later developed. Since the actual
average disposal rate has been less than 96,500 cubic yards, the landfill is not at
capacity and MSD expects the landfill to be in use for another 8-11 years and the
total capacity of the landfill and the available space as of 2017 was adjusted in
2017. In addition, a new survey of the landfill was performed in December of 2017
which increased the remaining capacity due to settlement and minor vehicle
compaction. The District will continue to accrue the remaining estimated cost of
closure and post-closure care annually.
The District is required to demonstrate that it has the financial capability to close
the landfill to the State of Missouri through the use of a financial test as specified
in 10 CSR 80-2.030(4)(D)6 of the Missouri Solid Waste Management Rules. The
District has complied with the State’s requirement. The District recognizes that
estimates of closure costs may change as a result of inflation, deflation, and/or
changes in technology and applicable laws and regulations. If closure cost
estimates change, the liability currently reported on the Statements of Net
Position will be adjusted accordingly.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 101
15. Commitments And Contingencies
United States And State Of Missouri V. Metropolitan St. Louis Sewer
District; In The United States District Court For The Eastern District Of
Missouri; Case No. 07-1120.
On April 27, 2012, the Court entered the consent decree (“CD”) involving the
Environmental Protection Agency, Missouri Department of Natural Resources,
Missouri Coalition for the Environment and The Metropolitan St. Louis Sewer
District (“MSD”). At the time the District entered into the CD, the CD required the
District to spend approximately $4.7 billion, in 2010 dollars, over a 23-year
implementation period. Throughout this period improvements will be made to the
District’s separate sewer system, combined sewer system, and wastewater
treatment plants. On June 1, 2011, the State of Missouri approved Chapter 11,
Chapter 12, and Appendix Q of the District’s Combined Sewer Overflow Long-Term
Control Plan Updated Report, dated February 2011.
On June 22, 2018, a United States District Judge approved an amendment to the
CD to extend it by five years from a 23-year program to a 28-year program. The
amount the District is required to spend in 2018 dollars pursuant to the CD is $6
billion. Recent regulatory changes have compelled MSD to accelerate certain non-
consent decree work. This amendment will allow MSD to meet these new
regulatory requirements in a fiscally responsible way while better controlling rate
increases over the coming years. The District continues to comply with the CD.
Other Commitments and Contingencies
The District is a defendant in various other matters of litigation. Of these matters,
management and District’s legal counsel do not anticipate any material effect on
the June 30, 2022 and 2021 financial statements.
The District has entered into construction and other contracts amounting to
approximately $540,000,000 and $470,000,000 at June 30, 2022 and 2021,
respectively, and through the respective audit report date. The District had
$744,149,393 and $853,126,796 in revenue bonds authorized by the voters but
unissued as of June 30, 2022 and 2021, respectively.
16. Restricted Net Position
The Statements of Net Position report $96,029,444 and $97,919,614 of restricted
net position at June 30, 2022 and 2021, respectively, of which $71,883,165 and
$68,212,821 are restricted due to enabling legislation, as of June 30, 2022 and
2021, respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 102
17. Segment Information
The District issued wastewater revenue bonds to finance wastewater
infrastructure projects. The District accounts for both wastewater and stormwater
activities in a single enterprise fund, but investors in those bonds rely solely on the
revenue generated by the wastewater activities for repayment. Fiscal year 2022
and 2021 summary financial information for each business segment is presented
below.
A segment is an identifiable activity reported as a stand-alone entity for which one
or more revenue bonds are outstanding. A segment has a specifically identifiable
revenue stream pledged in support of the revenue bonds and has related expenses,
gains and losses and assets, deferred outflows, liabilities and deferred inflows that
are required by external parties to be accounted for separately. The wastewater
system is the only reportable segment that meets the requirements of GASB
Statement No. 34, Basic Financial Statements - and Management’s Discussion and
Analysis - for State and Local Governments. The stormwater system is reported
on for informational purposes only.
Financial information as of and for the years ended June 30, 2022 and 2021 of the
District’s Wastewater Segment is as follows:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 103
2022 2021
As Restated
Assets
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 62,741,070$ 88,014,051$
Investments 180,153,078 201,964,355
Sewer service charges receivable, less allowance of
$75,207,244 in 2022 and $70,561,791 in 2021 69,470,552 66,333,963
Unbilled sewer service charges receivable 36,419,844 34,970,247
Accrued income on investments 1,045,802 1,386,438
Other receivables, less allowance of $54,456 in 2022
and $60,373 in 2021 2,814,607 2,623,352
Supplies inventory 8,923,100 8,475,419
Total Unrestricted Current Assets 361,568,053 403,767,825
Restricted Current Assets
Other receivables 28,747 43,590
Total Restricted Current Assets 28,747 43,590
Total Current Assets 361,596,800 403,811,415
Non-Current Assets
Restricted Assets
Cash and cash equivalents 62,288,385 20,680,722
Investments 84,353,060 110,366,490
Long-term investments 5,152,944 5,996,719
Property taxes receivable (17,972) (17,971)
Accrued income on investments 22,769 (120,562)
Total Restricted Non-Current Assets 151,799,186 136,905,398
Other Assets
Notes receivable 8,947,222 9,694,702
Long-term investments 264,169,435 189,961,198
Other Receivables - Non Current (Leases) 3,308,705 3,594,566
Total Other Assets 276,425,362 203,250,466
Capital Assets
Depreciable:
Treatment and disposal plant and equipment 1,332,498,020 1,303,648,712
Collection and pumping plant 2,630,842,605 2,411,802,786
General plant and equipment 91,204,300 86,303,314
Lease right of use asset 1,548,555 1,032,853
4,056,093,480 3,802,787,665
Less: Accumulated depreciation 1,541,823,124 1,459,412,219
Less: Accumulated amortization 300,309 142,204
Net depreciable assets 2,513,970,047 2,343,233,242
Non-depreciable:
Land 72,328,276 71,102,122
Construction in progress 1,146,653,155 1,163,985,241
Net Capital Assets 3,732,951,478 3,578,320,605
Total Non-Current Assets 4,161,176,026 3,918,476,469
Total Assets 4,522,772,826 4,322,287,884
WASTEWATER SEGMENT
STATEMENTS OF NET POSITION
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 104
2022 2021
As Restated
Deferred Outflows of Resources:
Bonds and notes payable-Deferred loss on refunding 3,068,689 5,469,323
Pension-related outflows 16,090,775 9,199,570
OPEB-related outflows 3,696,507 3,049,400
Total Deferred Outflows of Resources 22,855,971 17,718,293
Liabilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 36,602,049$ 40,758,787$
Lease liability 238,285 140,182
Deposits and accrued expenses 33,265,734 33,961,774
Retainage payable 18,128,103 20,326,492
Current portion of bonds and notes payable 66,337,500 61,157,300
Total Current Liabilities-Payable From Unrestricted Assets 154,571,671 156,344,535
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable — 510
Total Current Liabilities-Payable From Restricted Assets — 510
Total Current Liabilities 154,571,671 156,345,045
Non-Current Liabilities
Deposits and accrued expenses 9,375,268 9,202,567
Net pension liability 28,320,167 24,550,973
Lease liability 1,007,232 755,991
Total OPEB liability 23,111,464 21,498,182
Bonds and notes payable 1,839,184,214 1,768,769,051
Total Non-Current Liabilities 1,900,998,345 1,824,776,764
Total Liabilities 2,055,570,016 1,981,121,809
Deferred Inflows of Resources:
Bonds and Notes payable - Deferred gain on refunding 11,427,026 2,793,162
Pension-related inflows 20,688,338 20,238,170
OPEB-related inflows 2,947,746 3,328,967
Lease-related Inflows 3,425,569 3,772,962
Total Deferred Inflows of Resources 38,488,679 30,133,261
Net Position
Net investment in capital assets 1,896,771,593 1,799,542,191
Restricted for:
Debt service 24,146,279 29,706,793
Subdistrict construction and improvement 1,930,828 1,957,758
Unrestricted 528,721,402 497,544,364
Total Net Position 2,451,570,102$ 2,328,751,106$
WASTEWATER SEGMENT
STATEMENTS OF NET POSITION (Continued)
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 105
2022 2021
As Restated
Operating Revenues
Sewer service charges 452,645,902$ 425,250,174$
Recovery of (provision for) doubtful sewer service charge accounts (5,082,815) (5,353,771)
Licenses, permits, and other fees 3,937,368 3,753,797
Other 6,748,206 3,495,172
Total Operating Revenues 458,248,661 427,145,372
Operating Expenses
Pumping and treatment 65,549,965 64,475,064
Collection system maintenance 32,688,059 35,006,085
Engineering 1,074,617 902,282
General and administrative 58,779,438 55,195,106
Water backup claims 2,030,765 3,984,849
Depreciation 84,210,777 80,604,140
Lease amortization 158,105 142,204
Asset management 17,202,182 15,141,153
Total Operating Expenses 261,693,908 255,450,883
Operating Income 196,554,753 171,694,489
Non-Operating Revenues
Investment income (10,800,614) 1,304,545
Rent and other income 439,491 428,384
Total Non-Operating Revenues (10,361,123) 1,732,929
Non-Operating Expenses
Net loss on disposal and sale of capital assets 832,835 608,073
Non-recurring projects and studies 11,351,959 10,555,396
Interest expense 56,931,596 56,622,130
Total Non-Operating Expenses 69,116,390 67,785,599
Income Before Capital Grants And Contributions 117,077,240 105,641,819
Capital Grants And Contributions
Capital assets contributed 5,262,151 8,608,122
Grant revenue 479,605 1,288,444
Total Capital Grants And Contributions 5,741,756 9,896,566
Change In Net Position 122,818,996 115,538,385
Net Position - Beginning Of Year 2,328,751,106 2,213,212,721
Net Position - End Of Year 2,451,570,102$ 2,328,751,106$
WASTEWATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 106
2022 2021
As Restated
Cash Flows From Operating Activities
Received from customers 450,977,641$ 427,556,320$
Paid to employees for services (105,607,408) (105,930,520)
Paid to suppliers for goods and services (82,702,143) (83,426,791)
Net Cash Provided By Operating Activities 262,668,090 238,199,009
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 15,215 4,032
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 485,924 3,067,953
Proceeds from issuance of debt 148,531,457 172,012,156
Premium on sale of bonds 13,362,572 37,194,201
Principal paid on debt (67,915,074) (62,599,880)
Interest and fees paid on debt (65,442,437) (62,785,703)
Payments for capital assets (243,034,353) (290,256,122)
Proceeds from sale of capital assets 713,306 158,652
Proceeds from note receivable for other organization's contribution to
construction of treatment plant 1,576,500 1,154,696
Proceeds from insurance on destroyed capital assets — 1,088,835
Build America Bond tax credit 1,642,857 1,642,857
Net Cash (Used In) Capital And Related Financing Activities (210,079,248) (199,322,355)
Cash Flows From Investing Activities
Purchase of investments (507,982,689) (557,806,139)
Proceeds from sale and maturity of investments 464,511,080 530,033,856
Investment income 6,889,877 9,337,384
Proceeds from rents 312,357 238,122
Net Cash (Used In) Provided By Investing Activities (36,269,375) (18,196,777)
Net Increase In Cash And Cash Equivalents 16,334,682 20,683,909
Cash And Cash Equivalents At Beginning Of Year 108,694,773 88,010,864
Cash And Cash Equivalents At End Of Year 125,029,455$ 108,694,773$
Ended June 30,
WASTEWATER SEGMENT
STATEMENTS OF CASH FLOWS
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 107
Financial information as of and for the years ended June 30, 2022 and 2021 of the
District’s Stormwater Segment is as follows:
2022 2021
Assets
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 2,104,687$ 3,323,792$
Investments 6,992,110 8,976,389
Sewer service charges receivable, less allowance of
$97,073 in 2022 and $104,297 in 2021 46,641 53,337
Property taxes receivable, less allowance of $6,023 in 2022
and $7,430 in 2021 294,552 363,496
Accrued income on investments 21,562 48,449
Total Unrestricted Current Assets 9,459,552 12,765,463
Restricted Current Assets
Cash and cash equivalents 2,978,669 4,629,689
Investments 9,896,863 12,587,475
Total Restricted Current Assets 12,875,532 17,217,164
Total Current Assets 22,335,084 29,982,627
Non-Current Assets
Restricted Assets
Cash and cash equivalents 4,340,281 5,616,581
Investments 14,420,790 15,270,584
Long-term investments 36,671,648 26,202,398
Property taxes receivable, less allowance of $35,016 in 2022
and $36,447 in 2021 1,698,593 1,768,587
Accrued income on investments 142,505 289,739
Total Restricted Non-Current Assets 57,273,817 49,147,889
Other Assets
Long-term investments 10,544,282 8,442,904
Total Other Assets 10,544,282 8,442,904
Capital Assets
Depreciable:
Collection and pumping plant 698,614,594 681,265,978
General plant and equipment 18,381,227 17,213,330
716,995,821 698,479,308
Less: Accumulated depreciation 246,584,322 236,082,317
Net depreciable assets 470,411,499 462,396,991
Non-depreciable:
Land 9,877,572 8,467,188
Construction in progress 32,237,759 30,048,200
Net Capital Assets 512,526,830 500,912,379
Total Non-Current Assets 580,344,929 558,503,172
Total Assets 602,680,013 588,485,799
STORMWATER SEGMENT
STATEMENTS OF NET POSITION
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 108
2022 2021
Deferred Outflows of Resources:
Pension-related outflows 2,386,050 1,276,850
OPEB-related outflows 591,674 487,516
Total Deferred Outflows of Resources 2,977,724 1,764,366
Liabilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 101,288$ 39,113$
Deposits and accrued expenses 9,499,676 8,314,797
Retainage payable 95,976 —
Total Current Liabilities-Payable From Unrestricted Assets 9,696,940 8,353,910
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 828,414 701,665
Retainage payable 824,282 561,310
Total Current Liabilities-Payable From Restricted Assets 1,652,696 1,262,975
Total Current Liabilities 11,349,636 9,616,885
Non-Current Liabilities
Net pension liability 5,550,889 4,944,205
Total OPEB liability 3,682,118 3,422,446
Total Non-Current Liabilities 9,233,007 8,366,651
Total Liabilities 20,582,643 17,983,536
Deferred Inflows of Resources:
Pension-related inflows 2,505,686 2,433,228
OPEB-related inflows 497,757 559,118
Total Deferred Inflows of Resources 3,003,443 2,992,346
Net Position
Net investment in capital assets 510,930,034 499,759,396
Restricted for:
Subdistrict construction and improvement 69,952,336 66,255,063
Unrestricted 1,189,281 3,259,824
Total Net Position 582,071,651$ 569,274,283$
STATEMENTS OF NET POSITION (Continued)
June 30,
STORMWATER SEGMENT
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 109
2022 2021
Operating Revenues
Sewer service charges (811)$ (2,391)$
Recovery of (provision for) doubtful sewer service charge accounts 6,413 6,352
Other 14,937 2,229
Total Operating Revenues 20,539 6,190
Operating Expenses
Collection system maintenance 13,181,441 13,106,911
Engineering 10,599,484 10,598,514
General and administrative 315,306 (326,038)
Depreciation 11,283,302 10,748,129
Asset management 1,573,905 882,830
Total Operating Expenses 36,953,438 35,010,346
Operating (Loss) (36,932,899) (35,004,156)
Non-Operating Revenues
Property taxes levied by the District 44,479,669 43,624,302
Investment income (1,713,359) 87,733
Total Non-Operating Revenues 42,766,310 43,712,035
Non-Operating Expenses
Net loss on disposal and sale of capital assets 690,480 382,035
Non-recurring projects and studies 1,891,225 1,272,327
Total Non-Operating Expenses 2,581,705 1,654,362
Income (Loss) Before Capital Contributions 3,251,706 7,053,517
Capital Contributions
Capital assets contributed 8,087,321 4,334,972
Grant revenue 1,458,341 469,624
Total Capital Contributions 9,545,662 4,804,596
Change In Net Position 12,797,368 11,858,113
Net Position - Beginning Of Year 569,274,283 557,416,170
Net Position - End Of Year 582,071,651$ 569,274,283$
STORMWATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 110
2022 2021
Cash Flows From Operating Activities
Received from customers 1,206,799$ (1,627,308)$
Paid to suppliers for goods and services (27,204,239) (25,897,686)
Net Cash (Used In) Operating Activities (25,997,440) (27,524,994)
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 43,967,398 42,684,514
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 1,458,342 469,624
Payments for capital assets (14,450,433) (12,783,904)
Proceeds from sale of capital assets (539,111) —
Net Cash (Used In) Capital And Related Financing Activities (13,531,202) (12,314,280)
Cash Flows From Investing Activities
Purchase of investments (66,481,174) (75,869,353)
Proceeds from sale and maturity of investments 57,117,920 76,520,644
Investment income 778,072 959,684
Net Cash Provided By Investing Activities (8,585,182) 1,610,975
Net Increase In Cash And Cash Equivalents (4,146,426) 4,456,215
Cash And Cash Equivalents At Beginning Of Year 13,570,062 9,113,847
Cash And Cash Equivalents At End Of Year 9,423,637$ 13,570,062$
Ended June 30,
STORMWATER SEGMENT
STATEMENTS OF CASH FLOWS
For The Years
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 111
18. Tax Abatements
Tax abatements, as defined by Governmental Accounting Standards Board
(“GASB”) Statement No. 77, Tax Abatement Disclosures (“GASB Statement No.
77”), are agreements between a government and an individual or entity in which
the government promises to forgo tax revenues and the individual or entity
promises to subsequently take a specific action that contributes to economic
development or otherwise benefits the government or its citizens. This Statement
requires disclosure of tax abatement information about (1) a reporting
government’s own tax abatement agreements and (2) those that are entered into
by other governments and that reduce the reporting government’s tax revenues.
Since the District does not and has not entered into tax abatement agreements
directly with any individuals or entities, the following estimates are from tax
abatements entered into by other governments, specifically the county and
municipalities within the District’s boundary, that have reduced the District’s tax
revenues.
Tax Abatements entered into by St. Louis County and Cities located in St. Louis
County
The District’s property tax revenues were reduced through four programs that are
utilized by cities located in St. Louis County and the County itself. Summaries of
these four programs are as follows:
Enhanced Enterprise Zone: provides real property tax abatements to new or
expanding businesses in certain specified geographic areas designated by
local governments and certified by the Missouri Department of Economic
Development.
Industrial Development Bonds: finances industrial development projects for
private corporations, partnerships and individuals.
Land Clearance for Redevelopment Authority: assists with the
redevelopment of blighted or insanitary areas for residential, recreational,
commercial, industrial or public uses.
Urban Redevelopment Corporations: provides real property tax abatements
to encourage the redevelopment of blighted areas by an eligible city or
county.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 112
The amount of the District’s tax revenues that were abated by the county and cities
initiating the programs are reported in the following tables.
Land
Enhanced Industrial Clearance for Urban
St. Louis County Enterprise Development Redevelopment Redevelopment Total Tax
or City Zones Bonds Authority Corporations Abatements
St Louis County —$ 166,659$ —$ 11,893$ 178,552$
Bellerive — 3,642 — — 3,642
Berkeley 2,717 — — — 2,717
Brentwood — — — 8,818 8,818
Bridgeton — 498 — 7,357 7,855
Clayton — 75,352 — 4,082 79,434
Edmundson — — — 14,047 14,047
Eureka — 344 — — 344
Ferguson — 6,610 — 975 7,585
Frontenac — — — 11,793 11,793
Hazelwood 9,054 55,453 — 129,542 194,049
Kinloch — — — 56,774 56,774
Jennings — 162 — — 162
Maplewood — — — 13,774 13,774
Maryland Heights — — — 5,304 5,304
Normandy — — — 1,343 1,343
Olivette — — — 2,516 2,516
Overland — — — 4,591 4,591
Richmond Heights — — — 22,253 22,253
Rock Hill — — — 2,370 2,370
St. Ann — 356 — — 356
Sunset Hills — — — 863 863
University City — — 12,532 — 12,532
Woodson Terrace — — — 204 204
Total Tax Abatements 11,771$ 309,076$ 12,532$ 298,499$ 631,878$
For the Year Ended June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 113
Tax Abatements entered into by St. Louis City
The City of St. Louis offers a real estate tax abatement program as a development
tool designed to assist developers, businesses and individuals with renovation and
new construction projects. The tax abatement freezes the tax assessment in
improvements to property at the pre-development level. To be eligible for tax
abatement, a significant investment must be made in the property; generally
either new construction on vacant land or gut rehabilitation of an existing building.
The application must be made before construction begins and the usual term for
tax abatement is five to ten years.
The amount of the District’s tax revenues calculated at the District’s tax rates of
$.1078 per $100 of assessed value for both fiscal 2022 and 2021 that were abated
by St. Louis City are reported in the following tables.
Land
Enhanced Industrial Clearance for Urban
St. Louis County Enterprise Development Redevelopment Redevelopment Total Tax
or City Zones Bonds Authority Corporations Abatements
St Louis County —$ 188,439$ —$ 13,375$ 201,814$
Bellerive — 3,239 — — 3,239
Berkeley 692 — — — 692
Brentwood — — — 17,459 17,459
Bridgeton — 549 — 5,934 6,483
Clayton — 38,950 — 3,844 42,794
Edmundson — — — 23,493 23,493
Eureka — 309 — — 309
Ferguson — 6,357 — 1,047 7,404
Frontenac — — — 8,780 8,780
Hazelwood 8,287 39,089 — 99,767 147,143
Kinloch — — — 45,862 45,862
Jennings — 151 — — 151
Maplewood — — — 13,617 13,617
Maryland Heights — 404 — 7,406 7,810
Normandy — — — 3,025 3,025
Olivette — — — 2,566 2,566
Overland — — — 9,067 9,067
Richmond Heights — — — 18,263 18,263
Rock Hill — — — 2,749 2,749
St. Ann — 700 — — 700
Sunset Hills — — — 495 495
University City — — 10,276 — 10,276
Wellston — — — 713 713
Woodson Terrace — — — 199 199
Total Tax Abatements 8,979$ 278,187$ 10,276$ 277,661$ 575,103$
For the Year Ended June 30, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 114
Tax Increment Financing utilized by St. Louis County, Cities located in St. Louis
County and St. Louis City
Missouri’s Real Property Tax Increment Allocation Redevelopment Act enables
cities to finance certain redevelopment costs with the revenue generated from (i)
payments in lieu of real estate taxes, as measured by the net increase in assessed
valuation resulting from redevelopment and (ii) a portion of the increase in other
local tax revenue associated with new economic activity. When a tax increment
financing (“TIF”) plan is adopted, real estate taxes in the redevelopment are frozen
at their current level. By applying the real estate tax rate of all taxing districts
having taxing power within the redevelopment area to the increased assessed
valuation resulting from redevelopment, a tax “increment” is produced. The real
estate tax increments are referred to as payments in lieu of taxes, or “PILOTs”,
and are deposited in a special allocation fund.
The estimated TIF incremental values and the District’s net reduced tax revenue
resulting from the TIFs adopted in St. Louis County and the cities located in the
County and adopted in the City of St. Louis are as follows:
Reduced
Unabated Tax Abated Tax Tax
St. Louis City Values Revenue Values Revenue Revenue
Residential 157,389,170$ 163,842$ 107,787,020$ 21,320$ 142,522$
Commercial 162,562,700 169,228 142,609,494 47,505 121,722
Total 319,951,870$ 333,070$ 250,396,514$ 68,825$ 264,245$
For the Year Ended June 30, 2022
Reduced
Unabated Tax Abated Tax Tax
St. Louis City Values Revenue Values Revenue Revenue
Residential 147,239,040$ 158,724$ 110,822,179$ 22,706$ 136,018$
Commercial 190,333,200 205,179 148,956,196 51,336 153,843
Total 337,572,240$ 363,903$ 259,778,375$ 74,042$ 289,861$
For the Year Ended June 30, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 115
In summary, the District’s total tax revenues reduced during fiscal 2022 and 2021
as a result of the programs of other governments are as follows:
TIF TIF
Incremental Reduced Incremental Reduced
St. Louis County or City Values Tax Revenues Values Tax Revenues
St. Louis County and Cities Located
in St. Louis County 571,648,520$ 616,237$ 541,545,970$ 583,787$
St. Louis County PILOTs Received — (97,358) — (55,007)
St. Louis City 1,301,447,243 321,587 1,309,205,243 401,965
St. Louis City PILOTs Received — (39,620) — (44,808)
Total 1,873,095,763$ 800,846$ 1,850,751,213$ 885,937$
June 30, 2022
For the Years Ended
June 30, 2021
Reduced Reduced
St. Louis County or City Tax Revenues Tax Revenues
St. Louis County and Cities Located
in St. Louis County - Tax Abatements 631,878$ 575,103$
St. Louis City - Tax Abatements 264,245 289,861
St. Louis County and Cities Located
in St. Louis County - TIFs 518,879 528,780
St. Louis City - TIFs 281,967 357,157
Total Reduced Tax Revenues 1,696,969$ 1,750,901$
For the Years Ended
June 30, 2022 June 30, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 116
19. Subsequent Events
In preparing these financial statements the District has evaluated events and
transactions for potential recognition or disclosure through November 1, 2022, the
date the financial statements were available to be issued.
The District experienced a major weather event at the end of July 2022 resulting
in extreme flooding due to heavy rainfall with totals upwards of 10 inches in some
areas. As of September 30, 2022, water backup claims and overcharged claims paid
to date are $1.7 million with outstanding reserves of $8.2 million for a total of $9.9
million. The District has a $6.5 million deductible with a $10 million policy limit
and is expected to recover any amount paid over the deductible up to $16.5 million.
In October 2022, the District entered into agreements with the State of Missouri’s
Direct Loan Program to receive amounts up to $125.0 million for the purpose of
improving, renovating, repairing, replacing and equipping the District’s
Wastewater System. Series 2022C, loan amount of up to $10.0 million, will have
principal repayments effective in 2024 with a maturity date of 2043. Series 2022D,
loan amount of up to $115.0 million will have principal repayments effective in
2025 (FY26) with the maturity date of 2044 (FY45). The principal and interest on
the bonds are expected to be paid from future wastewater revenues. The District’s
interest rate is projected at 1.25% and is payable in semiannual installments at
varying amounts through 2044 in addition to an annual administrative fee of .50%.
As the District incurs approved capital expenditures, the Department of Natural
Resources reimburses the District for the expenditures from the bond proceeds
account and deposits the approved amount in a bond reserve fund. The District
repays the loan at a projected interest rate of 1.25% based on the amount that has
been borrowed. The payment requirements to maturity will be determined after
the debt is fully issued.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 117
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
AND RELATED RATIOS
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THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 118
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO EMPLOYEES’ PENSION
PLAN
June 30, 2022
Schedule of Employer Contributions
To Employees' Pension Plan
Fiscal Year Actuarially Contribution Contribution
Ending Determined Annual Deficiency Covered as a % of
June 30, Contribution Contribution (Excess) Payroll Covered Payroll
2015 10,359,139$ 10,359,139$ —$ 46,584,987$ 22.24%
2016 10,096,075 10,096,075 — 44,996,070 22.44%
2017 11,236,828 11,236,828 — 43,818,487 25.64%
2018 12,411,005 12,411,005 — 42,751,918 29.03%
2019 12,609,689 12,609,689 — 38,166,848 33.04%
2020 13,062,014 13,062,014 — 37,757,169 34.59%
2021 12,771,525 12,771,525 — 35,509,063 35.97%
2022 12,243,540 12,243,540 — 32,315,839 37.89%
Notes to Schedule:
1. This schedule will ultimately present ten years of information when available.
2. Valuation Date: Actuarially determined contribution rates are calculated as of January 1 of the fiscal year in which
the contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method: Entry Age Normal
Amortization Method: Level dollar layered, 20 year periods
Asset Valuation Method: 3-year smoothing period
Inflation: 2.50%
Salary Increases: 4.25%, average, including inflation
Investment Rate of Return: 6.25%, net of pension plan investment expense, including inflation for 2022.
6.75%, net of pension plan investment expense, including inflation for 2020 and 2021
6.90%, net of pension plan investment expense, including inflation for 2018 and 2019
7.00%, net of pension plan investment expense, including inflation for all years prior
to 2018
Mortality: In the 2022, 2021 and 2020 actuarial valuations, assumed life expectancies were
calculated using the Pub-2010 General Amount-Weighted Mortality Tables with
generational projection based on Scale MP-2021, 2020 and 2019, respectively. In the 2019,
2018 and 2017 actuarial valuations, assumed life expectancies were calculated using the
RP-2014 Employee and Healthy Annuitant Mortality Table (with generational projections
from 2006 based on the most current MP improvement scale which is updated annually)
and the RP-2014 Disabled Mortality Table. In the 2016 and 2015 actuarial valuations,
assumed life expectancies were calculated using the RP-2000 Healthy Annuitant Mortality
Table and the RP-2000 Disabled Mortality Table.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 119
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY
June 30, 2022
2021 2020 2019 2018 2017
Total OPEB Liability
Service cost 2,107$ 1,827$ 1,397$ 1,781$ 1,622$
Interest on total OPEB liability 553 663 1,017 865 895
Effect of plan changes — — 86 — —
Effect of economic/demographic gains or (losses) 534 — (3,887) — —
Changes of assumptions or other inputs 542 898 1,926 (987) 438
Benefit payments (1,863) (1,631) (1,539) (1,689) (1,600)
Net change in total OPEB liability 1,873 1,757 (1,000) (30) 1,355
Total OPEB Liability - Beginning 24,921 23,165 24,164 24,194 22,839
Total OPEB Liability - Ending 26,794$ 24,921$ 23,165$ 24,164$ 24,194$
Notes to Schedule:
1. Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period.
The following are the discount rates used in each period:
2021 2.06%
2020 2.12%
2019 2.74%
2018 4.10%
2017 3.44%
2016 3.78%
2. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75
to pay related benefits.
3. This schedule will ultimately present ten years of information when available.
4. Contributions to the OPEB plan are not based on a measure of pay so accordingly, no measure of payroll
is presented.
Schedule of Changes in Total OPEB Liability
In (000's)
Calendar Year Ending December 31,
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
Statistical Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
This part of the District’s annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
District’s overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the
reader understand how the District’s financial
performance and well-being have changed over time ...................................... 120 – 121
Revenue Capacity
These schedules contain information to help the reader
assess the District’s most significant local revenue
source, the user charge ...................................................................................... 122 – 130
Debt Capacity
These schedules present information to help the reader
assess the affordability of the District’s current levels of
outstanding debt and the District’s ability to issue
additional debt in the future ............................................................................. 131 – 132
Demographic And Economic Information
These schedules offer demographic and economic
indicators to help the reader understand the
environment within which the District’s financial
activities take place ........................................................................................... 133 – 135
Operating Information
These schedules contain service and infrastructure data
to help the reader understand how the information in the
District’s financial report relates to the services the
District provides and the activities it performs ............................................... 136 – 138
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 120
2013 2014 2015 a 2016 a 2017 a
Net Position
Net investment in
capital assets 1,877,692$ 1,845,394$ 1,805,453$ 1,809,386$ 1,876,249$
Restricted 111,066 142,764 142,445 136,547 135,259
Unrestricted 251,300 279,794 330,218 381,124 379,660
Total Net Position 2,240,058$ 2,267,952$ 2,278,116$ 2,327,057$ 2,391,168$
2018 a 2019 a 2020 a 2021 a 2022 a
As restated
Net Position
Net investment in
capital assets 1,968,740$ 2,063,519$ 2,184,736$ 2,299,302$ 2,407,702$
Restricted 129,579 127,414 97,034 97,920 96,029
Unrestricted 392,997 429,591 488,859 500,804 529,911
Total Net Position 2,491,316$ 2,620,524$ 2,770,629$ 2,898,025$ 3,033,642$
a Years 2015 to current include a change in the calculation of the net position components which is
not reflected in years prior.
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(000's)
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 121
Income before
Non-operating Capital Capital Change
Fiscal Operating Operating Operating Revenue/ Grants and Grants and in Net
Year Revenues Expenses Income (Expenses) Contributions Contributions Position
2013 241,946,337$ 230,158,434$ 11,787,903$ 832,056$ 12,619,959$ 17,534,919$ 30,154,878$
2014 265,772,853 241,297,635 24,475,218 (3,682,863) 20,792,355 7,102,480 27,894,835
2015 290,386,589 256,521,148 33,865,441 (13,074,700) 20,790,741 12,996,754 33,787,495
2016 319,857,731 273,095,705 46,762,026 (9,858,327) 36,903,699 12,036,784 48,940,483
2017 333,490,989 275,077,675 58,413,314 (3,916,119) 54,497,195 9,613,746 64,110,941
2018 368,311,477 273,765,206 94,546,271 (6,416,661) 88,129,610 26,077,674 114,207,284
2019 401,121,139 290,717,509 110,403,630 1,426,419 111,830,049 17,377,919 129,207,968
2020 437,992,039 296,739,396 141,252,643 2,461,185 143,713,828 6,390,907 150,104,735
2021 427,151,562 290,461,229 136,690,333 (23,994,999) 112,695,334 14,701,164 127,396,498
2022 458,269,200 298,647,346 159,621,854 (39,292,908) 120,328,946 15,287,418 135,616,364
*2021 was restated due to implementation of GASB 87
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 122
OPERATING REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Licenses,
Fiscal Sewer Service Permits, and
Year Charges, Net Other Fees Other
2013 235,980,065 2,731,497 3,234,775 241,946,337
2014 257,343,344 6,562,607 1,866,902 265,772,853
2015 282,270,193 6,656,831 1,459,565 290,386,589
2016 302,011,893 3,620,240 14,225,598 319,857,731
2017 328,359,526 4,036,362 1,095,101 333,490,989
2018 361,175,224 3,777,200 3,359,053 368,311,477
2019 395,579,903 3,063,458 2,477,778 401,121,139
2020 424,786,543 3,012,368 10,193,128 437,992,039
2021 419,900,364 3,753,797 3,497,401 427,151,562
2022 447,568,689 3,937,368 6,763,143 458,269,200
Total
Operating
Revenues
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 123
OPERATING EXPENSES
LAST TEN FISCAL YEARS
Fiscal Employment Materials and Contracted Chemical
Year Costs Utilities Supplies Services Supplies
2013 91,960,314 14,534,075 12,249,397 33,670,887 1,455,725
2014 93,542,222 14,986,387 11,097,857 36,875,093 2,440,843
2015 96,759,245 16,499,964 12,651,008 41,500,864 3,964,165
2016 102,458,574 16,624,434 11,838,551 48,450,272 3,498,796
2017 106,441,619 16,783,922 12,170,738 46,502,512 3,569,449
2018 105,555,411 16,154,516 11,005,087 48,390,986 2,501,712
2019 114,570,104 16,896,093 12,446,227 52,496,518 3,667,207
2020 115,575,521 15,770,882 12,045,016 52,776,346 3,123,434
2021 106,790,672 14,948,574 13,089,179 51,735,701 2,793,263
2022 106,830,879 16,296,769 12,850,178 49,636,282 3,735,229
Fiscal
Year Insurance Other Amortization
2013 2,696,416 3,561,780 160,128,594 70,029,840 n/a 230,158,434
2014 2,737,491 5,530,535 167,210,428 74,087,207 n/a 241,297,635
2015 2,791,622 3,713,021 177,879,889 78,641,259 n/a 256,521,148
2016 3,218,041 3,023,288 189,111,956 83,983,749 n/a 273,095,705
2017 3,293,267 5,121,777 193,883,284 81,194,391 n/a 275,077,675
2018 3,371,910 5,459,242 192,438,864 81,326,342 n/a 273,765,206
2019 3,819,449 3,182,068 207,077,666 83,639,843 n/a 290,717,509
2020 4,158,280 5,656,605 209,106,084 87,633,312 n/a 296,739,396
2021 4,410,048 5,199,319 198,966,756 91,352,269 142,204 290,461,229
2022 5,806,596 7,839,230 202,995,163 95,494,079 158,105 298,647,346
Note: Balances in FY18 and prior were restated in FY19 to accurately reflect expenses in the
appropriate category. The majority of the changes were increases to Employment Costs and Other
and decreases to Materials and Supplies and Contracted Services.
Subtotal,
Expenses
before
Depreciation
Total
Operating
ExpensesDepreciation
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 124
2013 2014 2015 2016 2017
Non-operating revenues
Property taxes levied by the District 26,016,135$ 27,450,319$ 24,764,324$ 25,671,058$ 32,458,054$
Investment income 1,056,966 2,966,549 3,000,591 4,635,866 2,902,624
Rent and other income 293,159 302,506 37,321 102,865 106,562
Total non-operating revenues 27,366,260 30,719,374 27,802,236 30,409,789 35,467,240
Non-operating expenses
Interest expense 21,062,474 25,661,127 27,138,546 28,943,200 31,250,777
Net loss on disposal and sale
of capital assets 795,527 5,248,443 1,420,902 324,513 673,044
Non-recurring projects and studies 4,676,203 3,492,667 12,317,488 11,000,403 7,459,538
Legal claims — — — —
Total non-operating expenses 26,534,204 34,402,237 40,876,936 40,268,116 39,383,359
Net non-operating revenue (expense) 832,056$ (3,682,863)$ (13,074,700)$ (9,858,327)$ (3,916,119)$
2018 2019 2020 2021, As restated 2022
Non-operating revenues
Property taxes levied by the District 33,748,932$ 34,107,619$ 35,439,441$ 43,624,302$ 44,479,669$
Investment income 7,405,957 16,699,153 16,259,182 1,392,278 (12,513,973)
Rent and other income 253,799 301,446 301,631 428,384 439,491
Total non-operating revenues 41,408,688 51,108,218 52,000,254 45,444,964 32,405,187
Non-operating expenses
Interest expense 36,695,083 33,082,384 36,119,362 56,622,132 56,931,596
Net loss on disposal and sale
of capital assets 1,833,908 970,825 961,476 990,108 1,523,315
Non-recurring projects and studies 9,296,358 15,628,590 12,458,231 11,827,723 13,243,184
Total non-operating expenses 47,825,349 49,681,799 49,539,069 69,439,963 71,698,095
Net non-operating revenue (expense) (6,416,661)$ 1,426,419$ 2,461,185$ (23,994,999)$ (39,292,908)$
Note: Interest expense increased in FY21 due to the implementation of GASB Statement No. 89, Accounting for Interest Cost Incurred
Before the End of a Construction Period , resulting in all interest cost incurred in FY21 being charged to interest expense in the period in
which it was incurred.
Fiscal Year
NON-OPERATING REVENUES AND EXPENSES
LAST TEN FISCAL YEARS
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 125
Type of Monthly Charge Unmetered c Residential c Non-Residential
Wastewater User Charge
Base Charge $27.31 $27.31 $27.31
Compliance Charge a
Tier 1 — — $4.55
Tier 2 — — 62.64
Tier 3 — — 136.37
Tier 4 — — 181.83
Tier 5 — — 227.29
Volume Charges
per Ccf b — 5.17 5.17
per room 3.06 — —
per water closet 11.40 — —
per bath 9.51 — —
per separate shower 9.51 — —
Extra Strength Surcharges a
Suspended Solids ("SS") over 300 milligrams per liter — — $309.88
Biochemical Oxygen Demand ("BOD") over 300 — — 832.28
milligrams per liter
Chemical Oxygen Demand ("COD") over 600 milligrams — — 416.14
per liter
Notes:
a Applicable only to non-residential customers, Extra Strength Surcharges priced per ton
b Ccf = Hundred cubic feet
c User charges for certain low income residential users will be 50 percent of the regular user charge
Source: Finance Department
USER CHARGE RATES
As of June 30, 2022
Metered
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 126
Type of Monthly Charge Unmetered c Residential c Non-Residential
Wastewater User Charge
Base Charge $27.31 $27.31 $27.31
Com pliance Charge a
Tier 1 — — $4.55
Tier 2 — — 62.64
Tier 3 — — 136.37
Tier 4 — — 181.83
Tier 5 — — 227.29
Volume Charges
per Ccf b — 5.17 5.17
per room 3.06 — —
per water closet 11.40 — —
per bath 9.51 — —
per separate shower 9.51 — —
Extra Strength Surcharges a
Suspended Solids ("SS") over 300 milligrams per liter — — $309.88
Biochemical Oxygen Demand ("BOD") over 300 — — 832.28
milligrams per liter
Chemical Oxygen Demand ("COD") over 600 milligrams — — 416.14
per liter
Notes:
a Applicable only to non-residential customers, Extra Strength Surcharges priced per ton
b Ccf = Hundred cubic feet
c User charges for certain low income residential users will be 50 percent of the regular user charge
Source: Finance Department
USER CHARGE RATES
As of June 30, 2022
Metered
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 127
Fiscal
Year
Wastewater Charges
Billed1
Wastewater
Charges
Collected2
Collections as a % of
Wastewater Charges
Billed
2013 233,882,795$ 233,877,875$ 99.99%
2014 245,555,628 241,549,548 98.37%
2015 279,555,881 275,049,684 98.39%
2016 300,803,084 299,932,808 99.71%
2017 326,663,167 322,829,334 98.83%
2018 359,628,200 351,107,233 97.63%
2019 394,518,583 386,033,225 97.85%
2020 425,147,702 419,918,978 98.77%
2021 420,781,206 417,788,153 99.29%
2022 446,532,652 439,461,443 98.42%
Note: The table shows the amount of wastewater user charge revenues which were
billed and collected by the District for the last ten fiscal years.
1 Wastewater Charges Billed includes wastewater user charge revenues billed and
accrued for the year.
2 Wastewater Charges Collected includes wastewater user charge revenues collected
for the current year and previous years billings.
USER CHARGE REVENUES
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 128
2013 b 2014 2015 2016 2017 c
Residential:
Single-Family/Unit 1 379.56$ 421.08$ 434.76$ 491.52$ 535.08$
Multi-Family/Unit 324.12 360.36 434.04 490.80 492.00
Commercial/Industrial:
Service Charge/Unit 2 478.56 412.56 348.12 296.80 336.69
Sanitary Sewer Usage Charge per Ccf 2.28 2.50 2.82 3.21 3.59
Extra Strength Surcharges:
SS over 300 milligrams per liter (price per ton) 231.35 231.35 244.03 251.88 262.00
BOD over 300 milligrams per liter (price per ton) 620.14 620.14 620.14 632.38 654.00
COD over 600 milligrams per liter (price per ton) 310.07 310.07 310.07 316.19 327.00
2018 2019 2020 2021 d,e 2022
Residential:
Single-Family/Unit 1 591.72$ 602.76$ 666.84$ 674.31$ 699.96$
Multi-Family/Unit 544.08 602.76 666.84 674.31 699.96$
Commercial/Industrial:
Service Charge/Unit 2 363.53 395.42 428.90 435.83 452.32
Sanitary Sewer Usage Charge per Ccf 3.97 4.40 4.87 4.97 5.17
Extra Strength Surcharges:
SS over 300 milligrams per liter (price per ton) 269.07 277.03 283.87 297.97 $309.88
BOD over 300 milligrams per liter (price per ton) 671.63 691.50 708.56 786.85 832.28
COD over 600 milligrams per liter (price per ton) 335.82 345.76 354.30 393.43 416.14
Notes:
1 Based on average usage of a typical single-family during the fiscal year listed.
2 Service Charge/Unit for Commercial/Industrial is calculated by using the sum of annualized base charge and compliance charge.
Starting FY 2013, MSD implemented 5-tier Compliance Charge Rate Model, so the Service Charge/Unit is based on calculated weighted
average compliance charge. FY 2013, FY 2014 & FY 2015 Service Charge/Unit were adjusted to reflect the weighted average compliance
charge calculations. Prior to FY 2013, there was only one tier compliance charge.
a Ordinance 13021, effective July 1, 2010, changed wastewater rates through FY 2012.
b Ordinance 13402, effective July 1, 2012, changed wastewater rates through FY 2016.
c Ordinance 14395, effective July 1, 2016, changed wastewater rates through FY 2020.
d Ordinance 15418, effective October 1, 2020, changed wastewater rates through June 30, 2021. The FY21 rates are blended rates due to the
Board approving a delay from July to October for the FY21 rate increase due to the COVID-19 pandemic.
e Ordinance 15669, effective July 1, 2021, changed wastewater rates through FY 2024.
Source: Finance Department
SEWER USER CHARGES (COMPOSITE-ANNUAL)
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 129
Single- Multi-
Fiscal Family Family Non- Total
Year Residential Residential Residential Accounts
2013 359,243 41,117 24,441 424,801
2014 358,928 40,951 24,297 424,176
2015 359,317 41,131 24,389 424,837
2016 356,926 41,585 24,001 422,512
2017 360,534 41,697 24,253 426,484
2018 360,957 41,355 24,296 426,608
2019 361,288 41,288 24,095 426,671
2020 361,545 41,365 24,066 426,976
2021 362,803 41,533 23,960 428,296
2022 363,525 41,387 23,940 428,852
Source: Finance Department
Note: Total accounts listed above are as of June 30 for each fiscal year listed.
NUMBER OF CUSTOMERS BY TYPE
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 130
Customer Amount %
Anheuser-Busch 6,009,037$ 1.33%
Washington University 2,259,830 0.50%
City Of St Louis 2,119,128 0.47%
Missouri-American Water Co 2,109,851 0.47%
St Louis University 1,630,212 0.36%
BJC Health System 1,386,559 0.31%
Sensient Colors Inc 1,382,103 0.31%
Sigma-Aldrich 1,343,327 0.30%
Jost Real Estate LLC 1,257,051 0.28%
The Boeing Company 1,149,697 0.25%
Subtotal (10 largest) 20,646,796 4.56%
Balance from other customers 431,998,295 95.44%
Grand totals 452,645,091$ 100.00%
Customer Amount %
Anheuser-Busch 5,715,199$ 2.42%
Washington University The 1,475,706 0.62%
Mallinckrodt Nuclear 1,405,103 0.59%
City Of St Louis-Parks 1,030,029 0.44%
St Louis University Hospital 1,028,812 0.43%
Sigma-Aldrich 735,691 0.31%
McDonnell Aircraft Corp/Boeing 720,564 0.30%
Sensient Colors Inc 702,801 0.30%
Saint Louis Zoo 663,673 0.28%
Prairie Farms Dairy Inc 590,349 0.25%
Subtotal (10 largest) 14,067,927 5.95%
Balance from other customers 222,522,873 94.05%
Grand totals 236,590,800$ 100.00%
User Charges
TEN LARGEST CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2022
User Charges
Fiscal Year 2013
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 131
Unamortized
Fiscal Subordinate Capital Premium, Net
Year Senior Subordinate Direct Loans Lease of Discount Amount Per Capita
2013 594,715,000$ 188,600,000$ 93,751,658$ —$ 56,252,401$ 933,319,059$ 702$ 2.26
2014 740,655,000 184,075,000 116,090,820 — 82,274,845 1,123,095,665 852 2.84
2015 736,775,000 171,455,000 148,279,465 — 78,591,961 1,135,101,426 860 2.69
2016 860,460,000 158,765,000 184,141,916 — 112,035,478 1,315,402,394 997 3.07
2017 995,175,000 145,410,000 210,851,827 — 124,465,181 1,475,902,008 1,127 3.44
2018 1,167,225,000 131,810,000 227,240,106 — 166,900,626 1,693,175,732 1,297 3.83
2019 1,145,131,480 117,840,000 247,692,802 — 159,855,883 1,670,520,165 1,285 3.46
2020 1,176,786,480 103,490,000 278,193,895 — 131,864,536 1,690,334,911 1,305 3.51
2021 1,262,436,480 88,780,000 315,849,539 — 162,860,332 1,829,926,351 1,417 3.64
2022 1,318,376,480 73,505,000 347,168,086 — 166,472,148 1,905,521,714 1,477 3.67
Notes:
Calculation of "Per Capita" for 2012 through 2013 is based on estimated population levels.
Calculation of "As a Share of Personal Income (%)" for 2012 through 2013 is based on estimated income levels.
Fiscal years 2013 through 2019 "Per Capita" and "As a Share of Personal Income (%)" were restated to conform to the calculation used for fiscal year 2020.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce, and the U.S. Census Bureau
Income (%)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Total
Revenue Bonds As a Share
of Personal
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 132
Amount of Debt Percentage of Debt
within within
Governmental Unit Debt Outstanding District Boundary District Boundary
City of St. Louis 75,755,000$ 75,755,000$ 100.0%
St. Louis County 64,395,000 63,879,840 99.2
Municipalities 93,669,597 93,669,597 100.0
City of St. Louis School District 210,359,000 210,359,000 100.0
St. Louis County School Districts 1,675,769,095 1,660,594,375 99.1
Fire Districts 138,325,261 128,544,703 92.9
2,258,272,954$ 2,232,802,516 98.9%
Total Direct Debt 1,905,521,714
Total Direct and Overlapping Debt 4,138,324,230$
Sources:
City of St. Louis, Office of Comptroller
St. Louis County, Department of Revenue
St. Louis Public Schools, Financial/Treasurer Office
Missouri Department of Education, School Finance
Polled Governments
Polled Fire Districts
Note: Although the District comprises all of the St. Louis City and most of St. Louis County, it does not entirely
match the County's boundaries. The calculation of overlapping debt is based on the percentage that a political
jurisdiction's territory lies within the District's territory. These percentages are weighted against the debt
outstanding thus providing the amount of debt within District Boundary.
COMPUTATION OF OVERLAPPING DEBT
As Of June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 133
Less:
Operating
Expenses
(excluding
Non- depreciation, Net
Fiscal Operating operating Gross GASB 68 & Available
Year Revenues Revenues Revenues GASB 75) Revenues
2013 240,597,715$ 956,664$ 241,554,379$ 146,372,419$ 95,181,960$
2014 264,422,401 2,670,333 267,092,734 153,221,914 113,870,820
2015 288,835,877 2,555,654 291,391,531 163,311,194 128,080,337
2016 318,463,297 3,894,305 322,357,602 168,258,133 154,099,469
2017 333,469,677 2,456,677 335,926,354 168,835,676 167,090,678
2018 368,292,762 6,356,029 374,648,791 163,026,313 211,622,478
2019 401,109,124 14,438,669 415,547,793 170,585,143 244,962,650
2020 437,982,036 14,210,947 452,192,983 175,848,764 276,344,219
2021 427,145,372 5,740,323 432,885,695 180,843,680 252,042,015
2022 458,248,661 4,226,652 462,475,313 179,411,916 283,063,397
Fiscal Coverage
Year Principal Interest Total Ratio
2013 18,749,700$ 31,191,190$ 49,940,890$ 1.9
2014 10,037,200 34,399,261 44,436,461 2.6
2015 20,252,200 41,596,192 61,848,392 2.1
2016 29,588,000 44,171,592 73,759,592 2.1
2017 38,026,700 51,333,869 89,360,569 1.9
2018 42,716,800 57,682,698 100,399,498 2.1
2019 50,907,800 63,224,915 114,132,715 2.1
2020 52,587,600 59,932,607 112,520,207 2.5
2021 58,574,100 60,727,474 119,301,574 2.1
2022 61,157,300 62,728,378 123,885,678 2.3
Fiscal Coverage
Year Principal Interest Total Ratio
2013 3,805,000$ 24,451,656$ 28,256,656$ 3.4
2014 4,060,000 30,161,408 34,221,408 3.3
2015 3,880,000 34,472,415 38,352,415 3.3
2016 10,170,000 36,211,319 46,381,319 3.3
2017 15,285,000 42,897,077 58,182,077 2.9
2018 18,365,000 49,558,285 67,923,285 3.1
2019 22,355,000 55,586,363 77,941,363 3.1
2020 23,305,000 52,355,403 75,660,403 3.7
2021 28,575,000 53,110,268 81,685,268 3.1
2022 28,820,000 55,200,621 84,020,621 3.4
Note: The methodology used to calculate the net available revenues and the coverage ratio was adjusted during fiscal
year 2013 and all previous years were restated for comparative purposes. The 2013 change in methodology consisted of
removing agency fees, previously reflected as a deduction from net available revenues, and now combining them with
interest in the debt service section. In fiscal year 2017 the methodology was changed to exclude GASB non-cash
transactions from the debt service coverage calculation. Fiscal years 2015 and 2016 have been adjusted to also exclude
the GASB 68 non-cash pension expense. In fiscal year 2021 the methodology was changed to exclude non-cash
unrealized gain/loss on investments from the debt service coverage calculation.
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Senior and Subordinate Debt Service
Senior Debt Service
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 134
Per
Personal Capita Total Median
Fiscal Income Personal Number of Household Labor
Year Populations (millions) 1 Income 1 Households 2 Income 3 City County State Force
2013 1,328,610 41,365 31,105 543,851 52,407 10.5 7.3 7.1 665,086
2014 1,318,610 39,593 30,026 543,991 55,573 9.6 6.9 6.6 666,200
2015 1,319,295 42,176 31,969 543,945 52,619 7.1 5.5 5.8 703,317
2016 1,319,047 42,845 32,482 542,223 53,156 5.9 4.6 4.9 718,821
2017 1,309,985 42,844 32,705 541,394 53,528 4.7 3.7 4.9 692,644
2018 1,305,352 44,248 33,897 541,832 54,821 4.3 3.3 3.5 699,882
2019 1,299,783 48,287 37,150 542,048 59,063 4.3 3.3 3.3 699,494
2020 1,294,781 48,113 37,159 544,002 59,054 12.0 8.9 7.9 677,261
2021 1,291,665 50,269 38,918 547,936 61,326 7.4 5.3 5.1 687,043
2022 1,290,497 51,927 40,238 553,224 62,724 3.3 2.3 2.4 675,242
Notes:
1The data in fiscal years 2013-2019 were restated to conform to the calculation used for fiscal year 2020.
2 The number of households was taken from http://www.census.gov/quickfacts/fact/table/US-MO: 2021 figure is based on
2015-2019 data; 2020 figure is based on 2014-2018 data; 2019 is based on 2013-2017 data; 2018 is based on 2012-2016 data;
2017 is based on 2011-2015 data; 2016 is based on 2010-2014 data; 2015 is based on 2013 data; 2014 is based on 2012 data;
2013 is based on 2010 census.
3 Median Household Income added to this schedule in fiscal year 2020 and all prior years updated to include this data.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce,
and Missouri Economic Resource and Information Center (MERIC)
http://www.bea.gov/regional/reis/scb.cfm
Footnotes- http://www.meric.mo.gov/regional-profiles/st-louis
https://www.census.gov/quickfacts/fact/table/US/PST045217
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment Rate
Saint Louis
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 135
Percentage Percentage
Employer Employees of Total Rank Employees of Total Rank
BJC HealthCare 29,595 4% 1 25,374 4% 1
Washington University in St. Louis 18,805 3% 2 13,677 2% 3
Mercy Health 15,410 2% 3 10,247 2% 9
Boeing, Integrated Defense Systems 14,865 2% 4 14,730 2% 2
SSM Healthcare 14,600 2% 5 11,312 2% 5
Scott Air Force Base 13,000 2% 6 13,020 2% 4
Schnuck Markets, Inc.8,658 1% 7 10,553 2% 8
Saint Louis University 6,596 1% 8 0%
City of St. Louis 6,489 1% 9 0%
Special School District of St. Louis County 5,773 1% 10 0%
Archdiosese of St. Louis 0%11,207 2% 6
Wal-Mart Stores Inc.0%10,600 2% 7
McDonald's Restaurants of St. Louis 0%9,500 2% 10
133,791 20% 130,220 21%
Total Employment 658,160 100% 612,072 100%
Note: Employees are for the St. Louis area which includes several counties not served by the District.
Sources:
St. Louis Business Journal's Book of Lists 2022 as of August 2022
St. Louis Business Journal's Book of Lists 2013
PRINCIPAL EMPLOYERS (ST. LOUIS METROPOLITAN AREA)
CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2022 Fiscal Year 2013
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 136
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Administrative 124 122 129 126 131 129 127 117 121 113
Office/Clerical 86 82 84 82 82 75 73 84 78 79
Plant Operation & Laboratory 249 252 236 226 227 222 228 231 237 259
Engineering & Technical 148 151 155 152 151 150 166 174 176 173
Sewer Construction
& Maintenance 324 328 345 358 360 365 341 349 344 292
Total Employees 931 935 949 944 951 941 935 955 956 916
Note: The total employees listed above are as of June 30 for each respective year.
Source: Human Resources Department
EMPLOYMENT LEVEL
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 137
Average Sewage
Fiscal Treatment in Millions
Year of Gallons per Day
2013 326.7
2014 273.8
2015 327.5
2016 335.2
2017 328.9
2018 270.1
2019 396.4
2020 367.5
2021 300.6
2022 289.5
Source: Operations Department
AVERAGE FLOW
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 138
2013 2014 2015 2016 2017
Miles of sewers 9,578 9,563 9,531 9,700 9,400
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 528 533 538 538 593
Annual engineering maximum plant capacity
(millions of gallons) 192,629 194,454 196,279 196,279 216,354
Amount treated annually (millions of gallons) 119,253 99,945 119,547 122,366 120,033
Unused capacity (millions of gallons) 73,376 94,509 76,732 73,913 96,321
Percentage of capacity utilized 62% 51% 61% 62% 55%
2018 2019 2020 2021 2022
Miles of sewers 9,400 9,400 9,400 9,400 9,400
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 593 593 593 811 811
Annual engineering maximum plant capacity
(millions of gallons) 216,354 216,354 216,354 216,354 216,354
Amount treated annually (millions of gallons) 96,534 144,754 134,502 109,195 105,726
Unused capacity (millions of gallons) 119,820 71,600 81,852 107,159 110,628
Percentage of capacity utilized 45%67% 62% 50% 49%
Sources: Operations Department and Engineering Department
Note:
a Million gallons per day - treatment capacity changed in fiscal year 2021 to reflect primary treatment capacity. Prior
years reflect permitted secondary average treatment capacity.
Fiscal Year
Fiscal Year
OPERATING AND CAPITAL INDICATORS
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT2350 MARKET STREET, ST. LOUIS, MISSOURI 63103WWW.MSDPROJECTCLEAR.ORG • 314-768-6200