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HomeMy Public PortalAboutExhibit MSD 2- MSD Rate Change Public NoticeMSD RATE CHANGE NOTICE The Metropolitan St. Louis Sewer District (MSD) has referred to its Rate Commission a proposal for fiscal year 2025 through fiscal year 2028 (July 1, 2024 through June 30, 2028) that addresses increases in wastewater rates and provides funding for a new Stormwater Capital Program. The proposed changes to wastewater rates would apply to all MSD customers. Changes as a result of the new Stormwater Capital Program would apply to all public and private property within the MSD service area, including properties owned by governmental or nonprofit entities, and those not receiving MSD wastewater sewer service. Levee Districts currently under agreements with MSD would be exempt from the proposed stormwater capital rates. RATE COMMISSION PROCESS: In 2000, changes to MSD’s Charter were approved by area voters that required the creation of an independent Rate Commission. Composed of 15 member organizations representing a broad cross-section of MSD’s customers and the community it serves, the Rate Commission is designed to provide public input into how rates are set. The Rate Commission process includes multiple public hearings and can last up to 165 days. This process began when a rate proposal was formally presented to the Rate Commission by MSD staff on Friday, March 24, 2023. Over the next several months, the Rate Commission will review the proposed rates and taxes and hold hearings to gather public input. WASTEWATER RATES: Wastewater rates must be sufficient to continue MSD’s ongoing multi-billion dollar, multi-decade capital construction program. From fiscal year 2025 through fiscal year 2028, MSD proposes spending nearly $1.65 billion on construction and related work. Largely driven by state and federal regulatory requirements, this work will reduce overflows into area waterways, alleviate basement backups, and help ensure water quality in the St. Louis area’s rivers and streams. Exhibit MSD 2 Comparison of Existing and Proposed Wastewater Rates Type of Monthly Charge (per Bill)Existing FY2024 (1)FY2025 FY2026 FY2027 FY2028 Base Charge Billing & Collection Charge 5.48$ 5.68$ 7.06$ 7.59$ 8.16$ 8.70$ System Availability 22.78 23.61 23.08 24.82 26.69 28.43 Total Base Service Charge 28.26$ 29.29$ 30.14$ 32.41$ 34.85$ 37.13$ Compliance Charge (2) Tier 1 4.71$ 4.85$ 7.44$ 7.76$ 8.00$ 8.22$ Tier 2 65.80 67.67 111.55 116.28 119.78 123.05 Tier 3 140.99 144.98 237.97 248.06 255.52 262.50 Tier 4 187.98 193.30 371.82 387.59 399.24 410.14 Tier 5 234.98 241.63 498.23 519.36 534.97 549.57 Volume Charge Metered - $/Ccf 5.35$ 5.55$ 6.18$ 6.65$ 7.15$ 7.62$ Unmetered Each Room 3.17$ 3.29$ 3.14$ 3.38$ 3.64$ 3.88$ Each Water Closet 11.80 12.23 11.74 12.63 13.58 14.47 Each Bath 9.84 10.20 10.05 10.81 11.63 12.39 Each Separate Shower 9.84 10.20 10.05 10.81 11.63 12.39 Extra Strength Surcharges - $/ton (2) Suspended Solids > 300 mg/l 320.36$ 329.43$ 675.38$ 726.04$ 780.50$ 831.24$ BOD > 300 mg/l 860.43 884.78 1,043.05 1,121.28 1,205.38 1,283.73 COD > 600 mg/l 430.22 442.40 521.53 560.65 602.70 641.88 Ccf - Hundred Cubic Feet (1) Final rate increase of Rate Change Plan approved October 2019 mg/l - milligram per liter (2) Applicable only to non-residential customers. COMPARISON OF EXISTING AND PROPOSED RATES Proposed Wastewater Charges Effective July 1 As of July 1, 2022, the typical customer owning a single-family home will pay $55.01 per month for wastewater services. MSD is proposing four rate increases between July 2024 and July 2027 to fund its operations and capital construction program. These increases will raise the typical single-family wastewater rate to $75.23 per month. STORMWATER CAPITAL FUNDING RATES: The Stormwater Capital Program consists of two funding mechanisms, an ad valorem tax rate of 7.45 cents per $100 of assessed valuation that will be charged to residential properties and an impervious area rate of $1.05 per 1,000 square feet that will be charged to all non-residential customers. The annual property tax assessment for the median single-family home will be approximately $25 or approximately $2.08 per month. The average non-residential customer is expected to pay approximately $36.00 per month or approximately $432.00 annually. For more information regard the Rate Change Proposal or the Rate Commission Process, please visit MSD’s website at www.msdprojectclear.org or contact Marion Gee, Director of Finance, at (314) 768-6299. Proposed Typical Monthly Wastewater Bill Single-family Multi-family Commercial FY2023 $55.01 $242.26 $629.06 FY2024 $57.04 $251.29 $651.96 FY2025 $61.04 $277.34 $759.69 FY2026 $65.66 $298.41 $813.69 FY2027 $70.60 $320.85 $869.63 FY2028 $75.23 $341.93 $922.18 Customer Class Customer Assistance Program participant bills would be 50% less than non-participants. Single-family - based on average 5 Ccf volume. Multi-family - based on average 40 Ccf volume/average 6 Units. Commercial - based on Normal strength with average 100 Ccf volume. Tier 2 Compliance Charge.