HomeMy Public PortalAboutExhibit MSD 61 Rate Model Guide- WastewaterMetropolitan St. Louis Sewer District
Rate Proposal FY 2025 – FY 2028 Financial Planning & Rate Model
The Rate Proposal submitted to the Rate Commission by the Metropolitan St. Louis Sewer District (MSD)
to introduce and recommend sewer and stormwater rates and charges for FY 2025 through FY 2028 is
supported by a comprehensive financial planning, cost of service, and rate model (Model). The model
was developed by Raftelis with input and guidance from MSD Staff. The detail and support for the
tables, figures and recommendations presented in the Rate Proposal can be found in the electronic
model. Discussion regarding the content and key variables can be found in the Rate Proposal.
This document describes content throughout the Model and the locations of key inputs and
assumptions. All formulas can be seen in the Model. The model has been setup to allow for modeling of
alternative financial planning rate adjustments, capital plan investment and funding mechanisms, and
operating cost escalators.
Guidelines for Making Changes to the Model
1.Throughout the model, cells that are outlined in blue indicate locations for controls and/or
inputs.
2.The ‘Dashboard’ provides inputs for cash financing of capital, SRF and revenue bond issues, and
rate increases alongside a display of performance metrics including operating reserve balance
and DSCR.
3.The ‘Cashflow’ sheet summarizes all revenues and expenses detailed on other sheets.
4.CIRP project costs and the CIRP financing plan can be found on the ‘CIRP’ sheet. Alternative
project costs could be entered on rows 45 to 53.
5.The Model is set up with debt projections provided by PFM. When changing CIRP Financing, it is
important to first switch the entries in column C of the ‘Debt Summary’ sheet from “PFM” to
“Raftelis” (this activates the debt calculations in the Model for the selected years). Users can
then adjust bond issuance amounts on the Dashboard and financing assumptions on the
‘Raftelis Proposed Rev. DS’ and ‘Raftelis Proposed SRF DS’ sheets (term, rate, etc.).
6.O&M forecasts by department are on the ‘O&M Summary’ sheet. Inflation rates for these
expenses can be changed on the ‘O&M & Rev Inflation Factors’ sheet.
7.Units of service and corresponding growth rates, including volume, customer bills, and
surcharged pollutants can be found on the ‘Demand’ sheet.
8.Cost of service and rate design calculations can all be found on the ‘COS’ sheet.
Exhibit MSD 61