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HomeMy Public PortalAboutExhibit MSD 68B - 2022B Official Bond StatementNEW ISSUE Book-Entry Only Ratings S&P: AAA Moody’s: Aa1 See “RATINGS” herein $109,070,000 The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds Series 2022B Dated: Date of Delivery Due: As shown on the inside cover pages The Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B (the “Series 2022B Bonds”) will be issued by The Metropolitan St. Louis Sewer District (the “District certain revenues of the District as further described herein under the section captioned “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS.” As further described herein, the Series 2022B Bonds are not secured by a debt service reserve fund. “DTC”), New York, NY. See the section herein captioned “THE SERIES 2022B BONDS – Book-Entry Only System.” a general or moral obligation of the District nor a debt, indebtedness or obligation of, or a pledge of the faith and credit of, the District or the State whatsoever. Neither the faith and credit nor the taxing power of the District, the State or any political subdivision thereof is pledged to the payment of the principal of, premium, if any, or interest on the Series 2022B Bonds or other costs incident thereto. The District has no authority to levy any taxes to pay the Series 2022B Bonds. Neither the members of the Board of Trustees of the District nor any person executing the Series 2022B Bonds shall be personally liable on the Series 2022B Bonds by reason of the issuance thereof. “THE SERIES 2022B BONDS – Redemption Provisions.” Maturities, Principal Amounts, Interest Rates, Yields, Prices and CUSIP Numbers are shown on the inside cover pages. Statement, including the appendices hereto, to obtain information essential to the making of an informed investment decision. See “RISK FACTORS” herein for a discussion of certain risks and other considerations associated with an investment in the Series 2022B Bonds. “Underwriters” Code TAX MATTERS” and the form of opinion of Co-Bond Counsel attached hereto as Appendix E. BofA Securities, Inc. Loop Capital Markets Siebert Williams Shank & Co., LLC Wells Fargo Corporate & Investment Banking RBC Capital Markets Exhibit MSD 68B $109,070,000 The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds Series 2022B MATURITY SCHEDULE Series 2022B Serial Bonds Maturity (May 1) Principal Amount Interest Rate Yield Price CUSIP1 2023 $ 6,345,000 5.000% 1.850% 102.788% 592481 QK4 2024 6,285,000 5.000 2.130 105.306 592481 QL2 2025 1,650,000 5.000 2.340 107.406 592481 QM0 2026 1,730,000 5.000 2.400 109.615 592481 QN8 2027 1,820,000 5.000 2.500 111.453 592481 QP3 2028 1,910,000 5.000 2.650 112.749 592481 QQ1 2029 2,005,000 5.000 2.780 113.843 592481 QR9 2030 2,105,000 5.000 2.870 114.952 592481 QS7 2031 2,210,000 5.000 2.930 116.106 592481 QT5 2032 2,320,000 5.000 2.980 117.200 592481 QU2 2033 2,435,000 5.000 3.050c 116.547 592481 QV0 2034 2,555,000 5.000 3.090c 116.176 592481 QW8 2035 2,685,000 5.000 3.170c 115.438 592481 QX6 2036 2,820,000 5.000 3.210c 115.071 592481 QY4 2037 2,960,000 5.000 3.250c 114.706 592481 QZ1 2038 3,110,000 5.000 3.300c 114.251 592481 RA5 2039 3,265,000 5.000 3.340c 113.888 592481 RB3 2040 3,425,000 5.000 3.370c 113.618 592481 RC1 2041 3,600,000 5.000 3.380c 113.527 592481 RD9 2042 3,780,000 5.000 3.400c 113.347 592481 RE7 Series 2022B Term Bonds 2047 $ 21,930,000 5.000% 3.500%c 112.452% 592481 RF4 2052 28,125,000 5.250 3.550c 114.079 592481 RG2 _______________________________ 1CUSIP is a registered trademark of The American Bankers Association. CUSIP data is provided by CUSIP Global Services, and is included solely for the convenience of the registered owners. CUSIP Global Services is managed on behalf of The American Bankers Association by FactSet Research Systems Inc. Neither the District nor the Underwriters nor the Co-Municipal Advisors shall be responsible for the selection of CUSIP numbers nor do the District nor the Underwriters nor the Co-Municipal Advisors make any representation as to the correctness of such numbers on the Series 2022B Bonds or as indicated herein. cYield to the first optional par call date of May 1, 2032. THE METROPOLITAN ST. LOUIS SEWER DISTRICT BOARD OF TRUSTEES Michael Evans, Chair Amy Fehr, Vice Chair Brian Wahby, Member Greg Nicozisin, Member Ret. Col. Richard Wilson, Member Brian K. Watson, Member ADMINISTRATION Brian L. Hoelscher, P.E., Executive Director Tim R. Snoke, Secretary-Treasurer John Strahlman, Assistant Secretary-Treasurer Susan M. Myers, General Counsel Marion M. Gee, Director of Finance Richard Unverferth, P.E., Director of Engineering Tracey Coleman, Director of Human Resources Bret A. Berthold, P.E., Director of Operations Jonathon C. Sprague, P.E., Director of Information Systems ADVISORS AND CONSULTANTS Co-Bond Counsel Gilmore & Bell, P.C. White Coleman & Associates, LLC St. Louis, Missouri St. Louis, Missouri Co-Municipal Advisors PFM Financial Advisors LLC Independent Public Advisors, LLC Cleveland, Ohio Kansas City, Missouri Disclosure Counsel Armstrong Teasdale LLP St. Louis, Missouri Financial Feasibility Consultant Raftelis Financial Consultants, Inc. Kansas City, Missouri Co-Underwriters’ Counsel Thompson Coburn LLP Richard G. Hughes & Associates, LLC St. Louis, Missouri St. Louis, Missouri ____________________________ REGARDING USE OF THIS OFFICIAL STATEMENT ____________________________ THE SERIES 2022B BONDS HAVE NEITHER BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS ANY DOCUMENT BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATIONS OF THE DISTRICT AND THE TERMS OF THE OFFERING. THE SERIES 2022B BONDS HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with and as part of their respective responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. No dealer, broker, salesman or other person has been authorized by the District, the Underwriters or the Co-Municipal Advisors to give any information or to make any representations with respect to the Series 2022B Bonds other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement neither constitutes an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the Series 2022B Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been furnished by the District and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the Co-Municipal Advisors or the Underwriters. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of fact. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that the information herein is correct as of any time subsequent to its date. References to website addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement. ____________________________ CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT ____________________________ Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “anticipate,” “project,” “budget” or other similar words. Forward-looking statements include, but are not limited to, certain statements under the section in this Official Statement captioned “RISK FACTORS” and certain statements contained in the Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B in Appendix D hereto. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. NEITHER THE DISTRICT NOR ANY OTHER PARTY PLANS TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN THEIR EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES UPON WHICH SUCH STATEMENTS ARE BASED OCCUR EXCEPT AS DESCRIBED IN THE SECTION HEREIN CAPTIONED “CONTINUING DISCLOSURE.” i TABLE OF CONTENTS INTRODUCTION ..................................................... 1 Purpose of this Official Statement .......................................... 1 The District .............................................................................. 1 Purpose of and Authority for the Series 2022B Bonds .............................................................................. 2 Security and Sources of Payment for the Series 2022B Bonds .................................................................. 2 Other Indebtedness .................................................................. 5 Continuing Disclosure Information ........................................ 6 Additional Information ........................................................... 6 THE SERIES 2022B BONDS ................................... 7 General .................................................................................... 7 Redemption Provisions ........................................................... 7 Effect of Notice of Redemption .............................................. 9 Book-Entry Only System ........................................................ 9 Registration, Transfer and Exchange of Series 2022B Bonds ................................................................ 1 Persons Deemed Owners of Series 2022B Bonds ................ 12 SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS .......................... 12 General .................................................................................. 12 Pledged Revenues ................................................................. 13 Pro Forma Statement of Pledged Revenues and Debt Service Coverage................................................. 15 Flow of Funds ....................................................................... 17 Rate Covenant ....................................................................... 20 Senior and Subordinate Bonds .............................................. 21 Other Indebtedness ................................................................ 21 PLAN OF FINANCE .............................................. 21 Purpose of and Authority for the Series 2022B Bonds ............................................................................ 21 Estimated Sources and Uses of Funds .................................. 2 DEBT SERVICE SCHEDULE ............................... 23 THE DISTRICT ...................................................... 24 General .................................................................................. 24 Organization and Management ............................................. 25 Board of Trustees .................................................................. 26 Administration ....................................................................... 26 The System ............................................................................ 28 Employees and Employee Relations ..................................... 28 Economic Conditions in the District ..................................... 29 Security .................................................................................. 29 Insurance ............................................................................... 29 THE CIRP ............................................................... 30 General .................................................................................. 30 Historical Capital Improvement Expenditures ..................... 31 Financing Plans for the CIRP ............................................... 31 Total Capital Expenditures under CIRP ............................... 32 Capital Finance Plans Contemplated Under Consent Decree ............................................................ 32 FINANCIAL OPERATIONS OF THE DISTRICT 33 General .................................................................................. 33 Budget and Appropriation Process ....................................... 34 Finance Department .............................................................. 34 Fund Structure ....................................................................... 34 Basis of Accounting .............................................................. 35 Financial Statements ............................................................. 35 Cash and Investments ............................................................ 35 MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW ................................ 36 2021 Financial Audit ............................................................. 36 2020 Financial Audit ............................................................. 3 Sewer Rates and Revenues ................................................. 3 Other Sources of Revenue ..................................................... 39 Rate Commission and Rate Setting Process ......................... 40 Billing and Collections ......................................................... 42 Rate Increases ....................................................................... 42 Historical and Projected Sewer Rates and Charges .............. 43 Customer Accounts ............................................................... 45 Largest User Charge Customers ........................................... 45 User Charge Revenues .......................................................... 46 Outstanding Indebtedness ..................................................... 46 Employee Benefits ................................................................ 48 Other Post-Employment Benefits ......................................... 49 Tax Limitation Amendment – Hancock Amendment .................................................................. 49 REGULATORY REQUIREMENTS ...................... 49 General .................................................................................. 49 Regulatory Matters – Consent Decree .................................. 50 RISK FACTORS ..................................................... 51 Factors Affecting the District ............................................... 51 Summary Financial Information ........................................... 52 Certain Bankruptcy Risks ..................................................... 52 Secondary Markets and Prices .............................................. 52 Risk of Taxability of Series 2022B Bonds ........................... 53 Risk of Audit of Series 2022B Bonds .................................. 53 Limited Obligations .............................................................. 53 Loss of Premium Upon Early Redemption .......................... 53 Potential Risks Relating to COVID-19 ................................ 53 No Debt Service Reserve Account Securing the Series 2022B Bonds ..................................................... 54 Cybersecurity Risks .............................................................. 54 Global Climate Change ......................................................... 54 LITIGATION .......................................................... 55 TAX MATTERS ..................................................... 55 Opinion of Co-Bond Counsel ............................................... 55 Other Tax Consequences ...................................................... 56 LEGAL MATTERS ................................................ 57 RATINGS ................................................................ 57 CONTINUING DISCLOSURE ............................... 5 UNDERWRITING .................................................. 5 CERTAIN RELATIONSHIPS ................................ 60 FINANCIAL FEASIBILITY CONSULTANT ....... 60 CO-MUNICIPAL ADVISORS ............................... 60 INDEPENDENT AUDITORS ................................ 6 MISCELLANEOUS ................................................ 6 APPENDIX A - Independent Auditors’ Report, Management’s Discussion and Analysis and Basic Financial Statements of The Metropolitan St. Louis Sewer District for the Fiscal Years ended June 30, 2021 and 2020 APPENDIX B - Information Regarding the District’s Service Area APPENDIX C - Definitions and Summaries of Certain Provisions of the Bond Ordinance and the Continuing Disclosure Agreement APPENDIX D - Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B APPENDIX E - Form of Opinion of Co-Bond Counsel OFFICIAL STATEMENT $109,070,000 The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds Series 2022B INTRODUCTION The following introductory information is not a summary of this Official Statement. It is only a brief description of, and is qualified by and subject in all respects to more complete and detailed information contained elsewhere in, this Official Statement, including the cover page and appendices hereto and the documents described herein. The order and placement of materials in this Official Statement, including the appendices hereto, are not to be deemed a determination of relevance, materiality or relative importance. This Official Statement, including the cover page and appendices, should be considered in its entirety. The offering of the Series 2022B Bonds to potential investors is made only by means of the entire Official Statement. All capitalized terms used in this Official Statement and not otherwise defined herein, including in Appendix C – “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT,” have the meanings set forth in the Bond Ordinance, as defined below. Purpose of this Official Statement The purpose of this Official Statement is to set forth certain information concerning The Metropolitan St. Louis Sewer District (the “District”), a body corporate, municipal corporation and political subdivision organized and existing under the laws of the State of Missouri (the “State” or “Missouri”), and the District’s Charter (Plan), approved by the voters of The City of St. Louis, Missouri (the “City”) and St. Louis County, Missouri (the “County”) at a special election on February 9, 1954, as amended, and approved by the voters of the City and the County at special elections on November 7, 2000, June 5, 2012, and April 6, 2021 (collectively and as amended, the “Charter”), and the $109,070,000 principal amount of Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B (the “Series 2022B Bonds”) to be issued by the District. See the sections herein captioned “THE DISTRICT” and “THE SERIES 2022B BONDS.” The District The District was created in 1954 to provide a metropolitan-wide system of wastewater treatment and sanitary sewerage facilities for the collection, treatment and disposal of sewage to serve the City and most of the more heavily populated areas of the County. 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. The District’s service area now encompasses approximately 520 square miles, including approximately all 66 square miles of the City and approximately 454 square miles (approximately 87%) of the County. The current population served by the District is approximately 1.3 million. A map of the District’s service area is included on the back cover hereof. See the sections herein captioned “THE DISTRICT,” “THE CIRP,” “FINANCIAL OPERATIONS OF THE DISTRICT,” “MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW,” and “REGULATORY REQUIREMENTS.” 2 Purpose of and Authority for the Series 2022B Bonds At a special election held on April 5, 2016, District voters approved the issuance by the District of $900,000,000 in sewer system revenue bonds (the “Current Authorization”). The Current Authorization enables the District to comply with federal and State clean water requirements. The District may use the proceeds of such sewer system revenue bonds for the purpose of designing, constructing, improving, renovating, repairing, replacing and equipping new and existing District sewer and drainage facilities and systems. At an election held on April 6, 2021, the District voters authorized the issuance by the District of $500,000,000 in sewer system revenue bonds (the “2021 Authorization”). Like with the four proceeding authorizations, the 2021 Authorization will enable the District to comply with federal and State clean water requirements. The Series 2022B Bonds are not being issued under the 2021 Authorization. The District previously issued bonds in a par amount of $546,873,204 from the Current Authorization, consisting of $152,500,000 of the Series 2017A Bonds representing a portion of the project portion of the Series 2017A Bonds, $47,722,204 of the Series 2018A Bond (each as defined herein), $25,267,000 of the District’s Subordinate Wastewater System Revenue Bonds (State of Missouri – Direct Loan Program), Series 2018B, $23,952,000 of the District’s Subordinate Wastewater System Revenue Bonds (State of Missouri – Direct Loan Program), Series 2019A, $52,130,000 of the Series 2019B Bonds (as defined herein), $22,000,000 of the District’s Subordinate Wastewater System Revenue Bonds (State of Missouri – Direct Loan Program), Series 2020A, $120,000,000 of the District’s Wastewater System Revenue Bonds, Series 2020B, $63,101,000 of the District’s Subordinate Wastewater System Revenue Bonds (State of Missouri – Direct Loan Program), Series 2021A, and $40,201,000 of the District’s Subordinate Wastewater System Revenue Bonds (State of Missouri – Direct Loan Program), Series 2021B. After the issuance of the Series 2022B Bonds, the remaining amount of the Current Authorization will be $253,126,796. No other bonds have been issued from the Current Authorization. The District will issue the Series 2022B Bonds pursuant to the Current Authorization and the Master Bond Ordinance No. 11713 (the “Master Bond Ordinance”) that was adopted by the Board of Trustees of the District (the “Board”) on April 22, 2004, as supplemented by Ordinance No. 15906 adopted on May 12, 2022 (the “2022B Ordinance”, together with the Master Bond Ordinance being collectively referred to herein as, the “Bond Ordinance”). Pursuant to the Current Authorization and the Master Bond Ordinance, as supplemented by the 2022B Ordinance, the District will issue the Series 2022B Bonds to provide funds to (a) refund the Refunded Bonds (defined herein); (b) pay a portion of the costs of the Series 2022B Project (as defined herein), and (c) pay the Costs of Issuance (as defined in Appendix C to this Official Statement) of the Series 2022B Bonds. For more information, see the sections herein captioned “THE CIRP” and “PLAN OF FINANCE - Purpose of and Authority for the Series 2022B Bonds.” A description of the Series 2022B Bonds is contained in this Official Statement under the caption “THE SERIES 2022B BONDS.” All references to the Series 2022B Bonds are qualified in their entirety by the definitive form thereof and the provisions with respect thereto in the Bond Ordinance. Security and Sources of Payment for the Series 2022B Bonds General. The Series 2022B Bonds are sewer system revenue bonds secured by and payable from certain revenues of the District received from operation of its sanitary sewer system (as further defined herein, the “System”) on a parity with the prior outstanding series of bonds (the “Prior Senior Bonds”) issued by the District as shown in the following table. 3 Name of Issue Series Designation Issue Date Original Principal Amount Outstanding Principal Amount as of May 5, 2022 Taxable Wastewater System Revenue Bonds (Build America Bonds – Direct Pay), Series 2010B (“Series 2010B Bonds”) 01/28/2010 $85,000,000 $85,000,000 Wastewater System Revenue Bonds, Series 2012A (“Series 2012A Bonds”) 08/23/2012 $225,000,000 $3,675,000 Wastewater System Refunding Revenue Bonds, Series 2012B (“Series 2012B Bonds”)** 11/14/2012 $141,730,000 $10,250,000 Wastewater System Revenue Bonds, Series 2013B (“Series 2013B Bonds”) 12/18/2013 $150,000,000 $35,470,000 Wastewater System Improvement and Refunding Revenue Bonds, Series 2015B (“Series 2015B Bonds”) 12/15/2015 $223,855,000 $162,960,000 Wastewater System Revenue Bonds, Series 2016C (“Series 2016C Bonds”) 12/20/2016 $150,000,000 $135,670,000 Wastewater System Improvement and Refunding Revenue Bonds, Series 2017A (“Series 2017A Bonds”) 12/14/2017 $316,175,000 $300,090,000 Wastewater System Revenue Bond (WIFIA - Deer Creek Sanitary Tunnel Pump Station and Sanitary Relief Project), Series 2018A (“Series 2018A Bond”) 12/18/2018 $47,722,204* $261,480 Wastewater System Revenue Bonds, Series 2019B (“Series 2019B Bonds”) 12/4/2019 $52,130,000 $50,415,000 Taxable Wastewater System Refunding Revenue Bonds, Series 2019C (“Series 2019C Bonds”) 12/4/2019 $276,260,000 $273,200,000 Wastewater System Revenue Bonds, Series 2020B (“Series 2020B Bonds”) 12/17/2020 $120,000,000 $116,160,000 Wastewater System Refunding Revenue Bonds, Series 2021C (“Series 2021C Bonds”) 5/3/2021 $5,620,000 $5,620,000 Wastewater System Refunding Revenue Bonds, Series 2022A (“Series 2022A Bonds”) 5/3/2022 $39,845,000 $39,845,000 ______________________ * The Series 2018A Bond was issued in a principal amount of not to exceed $47,722,204 of which $261,479.86 has been drawn and remains outstanding as of May 5, 2022. The District anticipates applying for a new WIFIA loan in calendar year 2022, to be drawn down over time in an amount not to exceed approximately $250 million dollars. ** Denotes Prior Senior Bonds, of which the 2023 and 2024 maturities are to be refunded by the Series 2022B Bonds. Outstanding Principal amounts are as of May 5, 2022. 4 Collectively, the Series 2022B Bonds, any Outstanding Prior Senior Bonds and any additional Bonds then Outstanding issued with a right to payment and secured by a lien on a parity therewith are referred to herein as the “Senior Bonds.” The Senior Bonds are also secured by amounts in the Renewal and Extension Fund (as defined herein). See the section herein captioned “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS.” The District has authorized the issuance of $23,040,000 original principal amount of Wastewater System Refunding Revenue Bonds, Series 2023A (the “Series 2023A Bonds”) to be issued on May 1, 2023. The Series 2023A Bonds were purchased by Morgan Stanley Municipal Funding, Inc. pursuant to the Amended and Restated Forward Delivery Bond Purchase Agreement dated March 23, 2020. The District plans to use the proceeds of the Series 2023A Bonds to refund a portion of the Series 2013B Bonds, being those Series 2013B Bonds maturing on May 1 in the years 2030, 2033, 2034, 2035 and 2039 outstanding in the aggregate principal amount of $31,775,000 (the “Series 2013B Redeemed Bonds”). The Series 2013B Redeemed Bonds will be called for redemption at the option of the District on May 1, 2023 conditioned upon the receipt by the paying agent for the Series 2013B Bonds, on or before said redemption date, of sufficient funds to pay the redemption price of the Series 2013B Redeemed Bonds. The District has authorized the issuance of $133,560,000 original principal amount of Wastewater System Refunding Revenue Bonds, Series 2025A (the “Series 2025A Bonds”) to be issued on May 1, 2025. The Series 2025A Bonds were purchased by Morgan Stanley Municipal Funding, Inc. pursuant to the Amended and Restated Forward Delivery Bond Purchase Agreement dated March 23, 2020. The District plans to use the proceeds of the Series 2025A Bonds to refund a portion of the Series 2015B Bonds being those bonds maturing in the years 2030 through 2038, inclusive, outstanding in the aggregate principal amount of $113,945,000, and $38,860,000 principal amount of the $57,260,000 original principal amount of the Series 2015B Bonds scheduled to mature on May 1, 2045 (the “Series 2015B Redeemed Bonds”). The Series 2015B Redeemed Bonds will be called for redemption at the option of the District on May 1, 2025 conditioned upon the receipt by the paying agent for the Series 2015B Bonds, on or before said redemption date, of sufficient funds to pay the redemption price of the Series 2015B Redeemed Bonds. The District has authorized the issuance of $106,930,000 original principal amount of Wastewater System Refunding Revenue Bonds, Series 2026A (the “Series 2026A Bonds”) to be issued on May 1, 2026. The Series 2026A Bonds were purchased by Barclays Capital Inc., pursuant to the Forward Delivery Bond Purchase Agreement dated October 6, 2021. The District plans to use the proceeds of the Series 2026A Bonds to currently refund $122,100,000 of the Series 2016C Bonds (the “Series 2016C Redeemed Bonds”). All of the Series 2016C Redeemed Bonds will be called for redemption at the option of the District on May 1, 2026 conditioned upon the receipt by the paying agent for the Series 2016C Bonds, on or before said redemption date, of sufficient funds to pay the redemption price of the Series 2016C Redeemed Bonds. The Series 2022B Bonds and the interest thereon are limited obligations of the District, payable solely from the Pledged Revenues, as defined herein, on a parity with the other Senior Bonds. The Series 2022B Bonds and the interest thereon shall not constitute a general or moral obligation of the District nor a debt, indebtedness, or obligation of, or a pledge of the faith and credit of, the District, the State or any political subdivision thereof, within the meaning of any constitutional, statutory or charter provision whatsoever. Neither the faith and credit nor the taxing power of the District, the State, or any political subdivision thereof is pledged to the payment of the Principal of, premium, if any, or interest on the Series 2022B Bonds or other costs incident thereto. The District has no authority to levy any taxes to pay the Series 2022B Bonds. Neither the members of the Board nor any person executing the Series 2022B Bonds shall be liable personally on the Series 2022B Bonds by reason of the issuance thereof. 5 Pledged Revenues. The Series 2022B Bonds are sewer system revenue bonds secured by a pledge of certain revenues of the System, referred to herein as “Pledged Revenues.” See the sections herein captioned “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS – Pledged Revenues” and “ – Flow of Funds” and “FINANCIAL OPERATIONS OF THE DISTRICT” for further discussion of the specific District revenues constituting Pledged Revenues under the Bond Ordinance. Renewal and Extension Fund. The Bond Ordinance establishes a Renewal and Extension Fund into which the District may deposit a portion of the Pledged Revenues. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS – Flow of Funds - Deposits to and Uses of Moneys in the Renewal and Extension Fund.” Series 2022B Bonds Not Secured by the Debt Service Reserve Account. The Bond Ordinance also establishes a Debt Service Reserve Account for the Senior Bonds, excluding any Senior SRF Bonds (as defined in Appendix C to this Official Statement) and Senior Uncovered Bonds. “Senior Uncovered Bonds” means all series of Senior Bonds, other than Senior SRF Bonds, with respect to which the District has specified pursuant to a Series Ordinance (as defined in Appendix C to this Official Statement) that such series of Senior Bonds will not be secured by the Debt Service Reserve Account. The Series 2022B Bonds are Senior Uncovered Bonds and therefore are not secured by the Debt Service Reserve Account. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS Flow of Funds Deposits to and Uses of Moneys in the Debt Service Reserve Account.” Additional Bonds. The Bond Ordinance authorizes the District to issue additional Bonds thereunder which may be either “Senior Bonds” or “Subordinate Bonds,” subject to certain requirements of the Bond Ordinance. The Bond Ordinance defines “Senior Bonds” as Bonds that have a right to payment and are secured by a lien on a parity with the Outstanding Senior Bonds and any additional Bonds issued on a parity (except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except that Senior SRF Bonds and Senior Uncovered Bonds are not secured by the Debt Service Reserve Account) with respect to the Pledged Revenues. The Master Bond Ordinance defines “Subordinate Bonds” as Bonds, including Subordinate SRF Bonds (as defined in Appendix C to this Official Statement), issued with a right to payment from the Pledged Revenues and secured by a lien on the Pledged Revenues expressly junior and subordinate to the Senior Bonds. The Series 2022B Bonds and any other Senior Bonds or Subordinate Bonds issued by the District previously or in the future under the Master Bond Ordinance are referred to herein collectively as the “Bonds.” See “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto for a discussion of the requirements that must be satisfied under the Master Bond Ordinance prior to the issuance of additional Bonds thereunder. Other Indebtedness Not including the Series 2022B Bonds, there are thirty-one series of Outstanding Bonds previously issued by the District (including the Series 2012B Bonds, which will be refunded in part by the Series 2022B Bonds), which are payable from Pledged Revenues of the System for the purpose of financing or refinancing the cost of designing, constructing, improving, renovating, repairing, replacing and equipping new and existing District wastewater facilities. As of May 5, 2022, the aggregate principal amount of Senior Bonds Outstanding is $1,218,616,480. In addition to the thirteen series of outstanding Senior Bonds (not including the Series 2022B Bonds, but including the Series 2012B Bonds), the District has five additional series of outstanding Subordinate Bonds payable from Pledged Revenues on a subordinate basis to the Senior Bonds, which are outstanding as of May 5, 2022 in the aggregate principal amount of $73,505,000 that were purchased by the State Environmental Improvement and Energy 6 Resources Authority of the State of Missouri (the “Authority”) through the Missouri State Revolving Fund Program (the “SRF Program”) of the Authority and the Missouri Department of Natural Resources (“DNR”). The District also has thirteen additional series of Outstanding Bonds payable from Pledged Revenues on a subordinate basis to the Senior Bonds, which are outstanding as of May 5, 2022 in the aggregate principal amount of $342,009,581 under the State’s Direct Loan Program, which were issued as Subordinate Bonds under the Master Bond Ordinance and the applicable Series Ordinances. For additional information on the eighteen series of Subordinate Bonds (collectively, the “Subordinate SRF Bonds”), see the section herein captioned “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS – Other Indebtedness.” Continuing Disclosure Information At the time of issuance of the Series 2022B Bonds, the District will enter into a Disclosure Dissemination Agent Agreement dated as of June 1, 2022 (the “Continuing Disclosure Agreement”) with Digital Assurance Certification, L.L.C. (“DAC”), under which the District will designate DAC as Disclosure Dissemination Agent (as defined in Appendix C to this Official Statement). Pursuant to the Continuing Disclosure Agreement, the District will covenant to provide certain financial and operating information with respect to the District on an on-going basis and notice of certain events in accordance with Rule 15c2-12 promulgated by the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time (“Rule 15c2-12”). These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12. See the section herein captioned “CONTINUING DISCLOSURE” and “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto. Additional Information Appendix A to this Official Statement contains the Independent Auditors’ Report, Management’s Discussion and Analysis and Basic Financial Statements of the District for the Fiscal Years ended June 30, 2021 and 2020. Appendix B to this Official Statement contains certain information regarding the service area of the District. Appendix C to this Official Statement includes definitions of certain capitalized terms used in this Official Statement and summaries of certain provisions of the Bond Ordinance and the Continuing Disclosure Agreement. Appendix D to this Official Statement contains the Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B prepared on behalf of the District with respect to the Series 2022B Bonds (the “Feasibility Report”). Appendix E to this Official Statement contains the proposed form of the opinions that are anticipated to be rendered by Co-Bond Counsel at the time of delivery of the Series 2022B Bonds. Brief descriptions of the Series 2022B Bonds, the Bond Ordinance and the District are included in this Official Statement. Such descriptions, information and summaries provided herein do not purport to be comprehensive or definitive. All references herein to any documents are qualified by the terms of such documents in their entirety. Until the issuance and delivery of the Series 2022B Bonds, copies of the documents described herein may be obtained from the District. After delivery of the Series 2022B Bonds, copies of such documents will be available for inspection at the corporate trust office of UMB Bank, N.A. in St. Louis, Missouri, as the Paying Agent under the Bond Ordinance (the “Paying Agent”). 7 THE SERIES 2022B BONDS General The Master Bond Ordinance authorizes the issuance of Bonds thereunder from time to time in one or more series substantially in the form set forth in the related Series Ordinance. The 2022B Ordinance further authorizes the execution, issuance and delivery of a series of Bonds thereunder and under the Master Bond Ordinance to be designated as “The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B” in the aggregate principal amount of $109,070,000 which series of Bonds shall be executed, issued and delivered under, and secured by, the Master Bond Ordinance and the 2022B Ordinance. Additional Senior Bonds and Subordinate Bonds may also be issued from time to time as provided in, and subject to the limitations set forth in, the Master Bond Ordinance and the 2022B Ordinance. See “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto. The Series 2022B Bonds shall be issued in fully registered form in the denomination of $5,000 each or integral multiples thereof and shall be dated the date of delivery thereof. Each Series 2022B Bond shall be numbered in a convenient manner, established by UMB Bank, N.A. in St. Louis, Missouri (the “Bond Registrar”), and shown on the Bond Register. The Series 2022B Bonds shall bear interest at the rates per annum set forth on the inside cover page hereof, computed on the basis of a 360-day year consisting of twelve 30-day months, payable on November 1, 2022, and semiannually thereafter on May 1 and November 1 of each year and shall mature in the principal amounts as set forth on the inside cover page hereof, unless earlier called for redemption. So long as any of the Series 2022B Bonds are in book-entry form, the Principal, redemption premium, if any, and interest on such Series 2022B Bonds are payable by check or draft mailed, or wire transfer, to Cede & Co. as Registered Owner thereof and will be redistributed by DTC and the participants as described below under “Book-Entry Only System.” So long as Cede & Co. is the registered owner of the Series 2022B Bonds, as nominee of DTC, references herein to the Bondowners, Owners or Registered Owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (herein defined) of the Bonds. Redemption Provisions Optional Redemption of Series 2022B Bonds. At the District’s option, the Series 2022B Bonds or portions thereof maturing on May 1, 2033 and thereafter may be called for redemption and payment prior to their stated maturity on May 1, 2032, and thereafter, in whole or in part on any date in such order of maturity as shall be determined by the District at the redemption price of 100% of the principal amount thereof plus accrued interest thereon to the redemption date. Mandatory Redemption of Series 2022B Bonds. The Series 2022B Bonds maturing in the years 2047 and 2052 are Term Bonds and are subject to mandatory redemption prior to maturity on May 1 in each of the years set forth in the following tables (each a “mandatory redemption date”), at 100% of the principal amount thereof plus accrued interest to the redemption date, without premium: 8 Series 2022B Bonds Maturing May 1, 2047 Year Principal Amount 2043 $3,970,000 2044 4,165,000 2045 4,375,000 2046 4,595,000 2047+ 4,825,000 _____________ +Final maturity Series 2022B Bonds Maturing May 1, 2052 Year Principal Amount 2048 $5,065,000 2049 5,330,000 2050 5,610,000 2051 5,905,000 2052+ 6,215,000 _____________ +Final maturity The District shall redeem such an aggregate Principal amount of the Series 2022B Bonds that are Term Bonds at a redemption price equal to the Principal amount thereof plus the interest due thereon to the mandatory redemption date. Selection of Bonds to be Redeemed; Redemption Among Series. If less than all of the Bonds of like maturity of any series shall be called for redemption, the particular Bonds, or portions of Bonds, to be redeemed shall be selected by the Paying Agent in such equitable manner as the Paying Agent may determine. The portion of any Bond of a denomination of more than $5,000 to be redeemed shall be in the Principal amount of $5,000 or an integral multiple thereof, and, in selecting portions of such Bonds for redemption, the District shall treat each such Bond as representing that number of Bonds which is obtained by dividing the Principal of such Bond to be redeemed in part by $5,000. Subject to the redemption provisions of any Series Ordinance, the District in its discretion may redeem the Bonds of any series, or a portion of the Bonds of any such series, before it redeems the Bonds of any other series. Within any particular series, any redemption of Bonds shall be effected in the manner provided in the Master Bond Ordinance and in any Series Ordinance. Notice of Redemption. Unless waived by any registered owner of Bonds to be redeemed and except as may be otherwise provided in a Series Ordinance, official notice of any such redemption shall be given by the Bond Registrar on behalf of the District by mailing a copy of an official redemption notice by first class mail, at least 30 days and not more than 60 days prior to the date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All official notices of redemption shall be dated, shall contain the complete official name of the Bond issue, and shall state: (1) the redemption date; (2) the redemption price; (3) the interest rate and maturity date of the Bonds being redeemed; (4) if less than all the Outstanding Bonds are to be redeemed, the Bond numbers, and, when part of the Bonds evidenced by one Bond certificate are being redeemed, the respective Principal amounts of such Bonds to be redeemed; (5) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after such date; and (6) the place 9 where such Bonds are to be surrendered for payment of the redemption price (which place of payment shall be the principal payment office of the Paying Agent or at such other office designated by the Paying Agent for such purpose) and the name, address, and telephone number of a person or persons at the Paying Agent who may be contacted with respect to the redemption. Any notice of redemption of any Bonds may specify that the redemption is contingent upon the deposit of moneys with the Paying Agent in an amount sufficient to pay the redemption price (which price shall include the redemption premium, if any) of all the Bonds or portions of Bonds which are to be redeemed on that date. Prior to any redemption date, the District shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. For so long as DTC is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified in the Bond Ordinance to DTC. It is expected that DTC shall, in turn, notify its participants and that the participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, a participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. Any defect in any notice of redemption shall not affect the validity of proceedings for redemption of the Bonds. Effect of Notice of Redemption Official notice of redemption having been given in the manner and under the conditions provided in the Bond Ordinance and moneys for payment of the redemption price being held by the Paying Agent as provided in the Bond Ordinance, the Bonds or portions of Bonds called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption of such Bonds or portions of Bonds on such date, and from and after such date interest on the Bonds or portions of Bonds called for redemption shall cease to accrue, such Bonds or portions of Bonds shall cease to be entitled to any lien, benefit, or security under the Bond Ordinance, and the owners of such Bonds or portions of Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof. Upon surrender for partial redemption of any Bond, there shall be prepared for and delivered to the registered owner a new Bond or Bonds of the same series, maturity, and interest rate in the amount of the unpaid Principal. Book-Entry Only System The Series 2022B Bonds are available in book-entry only form. Purchasers of the Series 2022B Bonds will not receive certificates representing their interests in the Series 2022B Bonds. Ownership interests in the 2022B Bonds will be available to purchasers only through a book-entry system (the “Book-Entry System”) maintained by DTC, New York, NY. The information provided immediately below concerning DTC and the Book-Entry Only System, as it currently exists, has been obtained from DTC and is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the District. The District makes no assurances that DTC, Direct Participants, Indirect Participants or other nominees of the Beneficial Owners will act in accordance with the procedures described herein or in a timely manner. General. DTC, New York, NY, will act as securities depository for the Series 2022B Bonds. The Series 2022B Bonds will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of 10 DTC. One fully-registered Series 2022B Bond certificate will be issued for each maturity of the Series 2022B Bonds, each in the aggregate principal amount of such maturity, and will be deposited with the Paying Agent as DTC’s “FAST Agent.” DTC and Participants. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings’ rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Ownership Interests. Purchases of Series 2022B Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2022B Bonds on DTC’s records. The ownership interest of each actual purchaser of each Series 2022B Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2022B Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2022B Bonds, except in the event that use of the Book-Entry System for the Series 2022B Bonds is discontinued. Transfers. To facilitate subsequent transfers, all Series 2022B Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Series 2022B Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2022B Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Series 2022B Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Notices. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to 11 Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Series 2022B Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2022B Bonds, such as redemptions, tenders, defaults and proposed amendments to the Series 2022B Bond documents. For example, Beneficial Owners of the Series 2022B Bonds may wish to ascertain that the nominee holding the Series 2022B Bonds for their benefit has agreed to obtain and transmit notice to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Series 2022B Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Voting. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2022B Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Series 2022B Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of Principal, Redemption Price and Interest. Redemption proceeds, distributions, and dividend payments on the Series 2022B Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and corresponding detail information from the District or the Paying Agent on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor the Paying Agent, nor the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. Discontinuation of Book-Entry Only System. DTC may discontinue providing its services as depository with respect to the Series 2022B Bonds at any time by giving reasonable notice to the Paying Agent or the District. Under such circumstances, in the event that a successor depository is not obtained, Series 2022B Bond certificates are required to be printed and delivered. The Direct Participant holding a majority position in the Series 2022B Bonds may decide to discontinue use of the system of book-entry transfer through DTC (or a successor securities depository). In that event, Series 2022B Bond certificates will be printed and delivered to DTC. The information above concerning DTC and DTC’s book-entry system has been obtained from DTC and is not guaranteed as to accuracy or completeness by and is not to be construed as a representation by the District. The District does not make any assurance that DTC, Direct Participants, Indirect Participants or other nominees of the Beneficial Owners will act in accordance with the procedures described above or in a timely manner. 12 Registration, Transfer and Exchange of Series 2022B Bonds The Paying Agent has been appointed the Bond Registrar and as such shall maintain the Bond Register for the registration and transfer of Series 2022B Bonds as provided in the Bond Ordinance. Any Series 2022B Bond may be transferred only upon the books kept for the registration and transfer of Series 2022B Bonds upon surrender thereof to the Paying Agent duly endorsed for transfer or accompanied by a written instrument of transfer duly executed by the registered owner or his or her attorney or legal representative in such form as shall be satisfactory to the Paying Agent. Upon any such transfer, the District shall execute and the Paying Agent shall authenticate and deliver in exchange for such Series 2022B Bond a new fully registered Series 2022B Bond or Series 2022B Bonds, registered in the name of the transferee, of any denomination or denominations authorized by the Bond Ordinance. Any Series 2022B Bond, upon surrender thereof at the principal corporate trust office of the Paying Agent together with a written instrument of transfer duly executed by the registered owner or his or her attorney or legal representative in such form as shall be satisfactory to the Paying Agent, may at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Series 2022B Bonds of the same series and maturity and bearing interest at the same rate. In all cases in which Series 2022B Bonds shall be exchanged or transferred, the District shall execute and the Paying Agent shall authenticate and deliver, at the earliest practicable time, Series 2022B Bonds in accordance with the provisions of the Bond Ordinance. All Series 2022B Bonds surrendered in any such exchange or transfer shall forthwith be cancelled by the Paying Agent. The District or the Paying Agent may charge the Bondholder requesting the same for every such exchange or transfer of Series 2022B Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or transfer, and such charge shall be paid before any such new Series 2022B Bond shall be delivered. Persons Deemed Owners of Series 2022B Bonds The person in whose name any Series 2022B Bond shall be registered as shown on the Bond Register required to be maintained by the Paying Agent shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of and redemption premium, if any, and interest on any such Series 2022B Bond shall be made only to or upon the order of the Registered Owner thereof or his or her legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Series 2022B Bond, including the interest thereon, to the extent of the sum or sums so paid. SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS General The Series 2022B Bonds are sewer system revenue bonds secured by and payable from Pledged Revenues on a parity with the District’s Outstanding Senior Bonds and any other Senior Bonds issued under the terms of the Master Bond Ordinance. The Senior Bonds are also secured by amounts on deposit in the Renewal and Extension Fund and, except with respect to Senior Uncovered Bonds, the Debt Service Reserve Account. The Series 2022B Bonds are Senior Uncovered Bonds and therefore are not secured by the Debt Service Reserve Account. The Series 2022B Bonds and the interest thereon are limited obligations of the District payable solely from the Pledged Revenues on a parity with the other Senior Bonds. The Series 2022B Bonds and 13 the interest thereon shall not constitute a general or moral obligation of the District nor a debt, indebtedness or obligation of, or a pledge of the faith and credit of, the District or the State or any political subdivision thereof, within the meaning of any constitutional, statutory or charter provision whatsoever. Neither the faith and credit nor the taxing power of the District, the State or any political subdivision thereof is pledged to the payment of the Principal of, premium, if any, or interest on the Series 2022B Bonds or other costs incident thereto. The District has no authority to levy any taxes to pay the Series 2022B Bonds. Neither the members of the Board nor any person executing the Series 2022B Bonds shall be liable personally on the Series 2022B Bonds by reason of the issuance thereof. Pledged Revenues Pursuant to the Master Bond Ordinance, the District has pledged all Pledged Revenues to the payment of the Principal of, premium, if any, and interest on all Bonds issued thereunder. Such pledge is for the equal and proportionate benefit and security of the District’s Outstanding Senior Bonds and any other Senior Bonds issued under the terms of the Master Bond Ordinance regardless of the time or times of their issuance or maturity. In the Master Bond Ordinance, the District covenants that it will not issue obligations of any kind or nature payable from, or with a lien on, the Pledged Revenues or any part thereof having priority over or, except as permitted in the Master Bond Ordinance for the issuance of Senior Bonds, on a parity with the Series 2022B Bonds. Notwithstanding the foregoing, the Master Bond Ordinance permits the issuance of Subordinate Bonds secured by the Pledged Revenues on a subordinate basis to the Senior Bonds. “Pledged Revenues” means (a) Net Operating Revenues (as defined herein) of the System (as defined in the directly below paragraph), (b) Investment Earnings (as defined in the Bond Ordinance as all interest received on and profits derived from investments of moneys in all funds and accounts of the District other than investments derived from or with respect to (i) stormwater revenues, as described below, (ii) all funds and accounts established in connection with SRF Bonds and (iii) obligations issued by the District on behalf of any of its subdistricts), (c) Hedge Receipts and (d) all moneys paid or required to be paid into, and all moneys and securities on deposit from time to time in, the funds and accounts specified in the Bond Ordinance, but excluding any amounts required in the Bond Ordinance to be set aside pending, or used for, rebate to the United States of America government pursuant to Section 148(f) of the Internal Revenue Code of 1986, as amended (the “Code”), including, but not limited to, amounts in the Rebate Fund created in the Bond Ordinance. The Bond Ordinance defines the “System” as the sanitary sewer system of the District, as it now exists and as it may be added to, extended, improved and equipped, either from the proceeds of the Bonds or from any other sources at any time, including without limitation, (a) all sanitary sewers, all combined sewers, all pumping stations, all wastewater treatment plants, and all equipment used in connection therewith, all facilities for the collection, treatment and disposal of sewage and wastewater, including industrial wastes, and (b) all other facilities or property of any nature or description, real or personal, tangible or intangible, owned or used by the District in the collection, treatment and disposal of sewage. The Bond Ordinance defines “Net Operating Revenues” as all Operating Revenues, after provision for payment of all Expenses of Operation and Maintenance. The Bond Ordinance defines “Operating Revenues” as all income and revenue of any nature derived from the operation of the System, including periodic wastewater billings, service charges, other charges for wastewater service and the availability thereof (other than any special assessment proceeds), connection or tap fees (whether accounted for as revenues or as contributed capital), net proceeds from business interruption insurance, the principal of gifts, bequests, contributions, grants and donations available to pay debt service of Bonds, and any amounts deposited in escrow in connection with the acquisition, construction, remodeling, 14 renovation and equipping of facilities to be applied during the period of determination to pay interest on Bonds. The Bond Ordinance expressly excludes the following from the definition of Operating Revenues: (1) any profits or losses on the early extinguishment of debt or on the sale or other disposition, not in the ordinary course of business, of investments or fixed or capital assets, and local, state or federal grants or other moneys received for the payment of Expenses of Operation and Maintenance (See Appendix C for definition of “Expenses of Operation and Maintenance”), (2) local, state, or federal grants, loans (including Government Loans), capital improvement contract payments, or other moneys received for capital improvements to the System, (3) Investment Earnings, (4) any stormwater charges (referred to herein as the “Stormwater Service Charges”) and (5) any property tax revenues. Although revenues from the Stormwater Service Charge are not included in Operating Revenues and thus are not available for payment of debt service on any Bonds issued under the Bond Ordinance, including the Series 2022B Bonds, such revenues are accounted for and included in the amount of Operating Revenues identified in the Independent Auditor’s Report and Financial Statements included as Appendix A to this Official Statement. The schedule of Pledged Revenues shown on the following page was prepared to show the amount of Pledged Revenues available historically to pay debt service on the Bonds. [Remainder of page intentionally left blank] 15 WASTEWATER SEGMENT SCHEDULE OF PLEDGED REVENUES For the Fiscal Years Ended June 30, 2017 Through 20211 (In Thousands) 2017 2018 2019 2020 2021 Operating Revenues Sewer service charges2 $330,883 $364,171 $399,932 $430,400 $425,250 Recovery (provision) of doubtful sewer services charge account (2,534) (3,010) (4,361) (5,623) (5,354) Licenses, permits and other fees 4,036 3,777 3,063 3,012 3,754 Other 1,085 3,355 2,474 10,193 3,495 Total Operating Revenues $333,470 $368,293 $401,109 $437,982 $427,145 Nonoperating Revenues3 Investment income $2,457 $6,356 $14,439 $14,211 $5,740 Total Operating and Nonoperating Revenues $335,926 $374,649 $415,548 $452,193 $432,886 Operating Expenses Pumping and treatment $60,203 $60,735 $63,197 $62,030 $64,475 Collection system maintenance 33,477 29,266 29,309 34,416 35,006 Engineering 4,722 2,840 1,153 938 902 General and administrative 51,256 54,588 58,699 59,813 61,334 Water backup claims 5,035 1,548 5,436 4,653 3,985 Asset Management 14,143 14,048 12,791 13,999 15,141 Total Operating Expenses $168,836 $163,026 $170,585 $175,849 $180,844 Total Expenses $168,835 $163,026 $170,585 $175,849 $180,844 Pledged Revenues $167,091 $211,622 $244,963 $276,344 $252,042 Senior Bond Debt Service $58,182 $67,923 $77,941 $75,660 $81,685 Subordinate Bond Debt Service 31,178 32,476 36,192 36,860 37,616 Total Debt Service2 $89,361 $100,399 $114,133 $112,520 $119,301 Senior Bond Debt Coverage Ratio 2.9x 3.1x 3.1x 3.7x 3.1x Total Debt Service Coverage Ratio 1.9x 2.1x 2.1x 2.5x 2.1x ______________________ Source: District 1 For the purposes of this Official Statement figures have been rounded. 2 These numbers are based on the District’s year end audited financial statements and may differ from the historical numbers shown on Page 16 hereof and Table 9 of the Feasibility Report. These differences are due to presentation requirements for auditing purposes. 3 Audited figures exclude Build America Bond federal subsidy payments from non-operating revenues and reduce the total annual debt service figure by the corresponding amount. Pro Forma Statement of Pledged Revenues and Debt Service Coverage The following table shows actual wastewater revenues and expenditures and debt service coverage for Fiscal Year 2021 and pro forma statements(1) showing projected wastewater revenues and expenditures and debt service coverage on existing and anticipated revenue bonds during the current Fiscal Year and the next four Fiscal Years. 16 COMPARISON OF PROJECTED PLEDGED REVENUES AND PROJECTED DEBT SERVICE COVERAGE(1)(2) FY 2021 Actual FY 2022 Projected FY 2023 Projected FY 2024 Projected User Charge Revenue $ 419,326,522 $ 446,244,487 $ 459,279,591 $ 475,048,501 Other Miscellaneous Revenue Other Operating Revenue(3) $ 6,226,797 $ 8,452,003 $ 5,253,182 $ 5,488,600 Connection Fee Revenue 1,592,052 1,257,842 1,124,000 1,124,000 Subtotal Other Miscellaneous Revenue $ 7,818,849 $ 9,709,844 $ 6,377,182 $ 6,612,600 Interest Income – Operating and Capital(4) 5,740,324 7,435,003 8,616,024 11,264,405 Total Wastewater Revenue $ 432,885,695 $ 463,389,335 $ 474,272,797 $ 492,925,506 Gen. Fund Operating Expenses $ 165,055,194 $ 169,911,058 $ 184,014,455 $ 189,459,921 Other Operating Expenses 15,788,482 2,524,128 4,472,778 5,549,774 Subtotal Operating Expenses $ 180,843,676 $ 172,435,186 $ 188,487,233 $ 195,009,695 Net Revenue Available for Debt Service $ 252,042,019 $ 290,954,149 $ 285,785,564 $ 297,915,811 Actual and Projected Debt Service (Payments To Bondholders) Senior Bonds $ 81,376,563 $ 82,592,946 $ 96,192,773 $ 106,019,139 Subordinate SRF Bonds 38,397,368 39,508,542 42,970,499 47,784,109 Total Projected Debt Service $ 119,773,931 $ 122,101,488 $ 139,163,271 $ 153,803,249 Total Projected Senior Debt Coverage 3.09x 3.54x 2.96x 2.83x Total Projected Coverage for all Debt 2.11x 2.37x 2.06x 1.93x _________ Source: Feasibility Report (1) See Appendix D – Feasibility Report page D-33 for detailed discussion of principal assumptions upon which projections are based. (2) For the purposes of this Official Statement figures have been rounded. (3) Includes interest earned from the Missouri American Water Loan and City of Arnold, Missouri. (4) Does not match figures included in Appendix A, due to exclusion of $4,435,778 net unrealized losses. 17 Flow of Funds Funds and Accounts. The Bond Ordinance establishes or ratifies the establishment of the following funds and accounts and provides that the moneys deposited in such funds and accounts are held by U.S. Bank, N.A., St. Louis, Missouri, as the depository (the “Depository”) for the account of the District, in trust for the purposes set forth in the Bond Ordinance: (1) The Metropolitan St. Louis Sewer District Wastewater Revenue Fund (the “Revenue Fund”); (2) The Metropolitan St. Louis Sewer District Wastewater Sinking Fund (the “Sinking Fund”), and within such Sinking Fund a Payments Account and a Debt Service Reserve Account; (3) The Metropolitan St. Louis Sewer District Wastewater Renewal and Extension Fund (the “Renewal and Extension Fund”); (4) The Metropolitan St. Louis Sewer District Wastewater Rebate Fund (the “Rebate Fund”), and within such Rebate Fund a Series 2022B Rebate Account; and (5) The Metropolitan St. Louis Sewer District Wastewater Project Fund (the “Project Fund”), and within such Project Fund a Series 2022B Project Account. Deposits to and Uses of Moneys in the Revenue Fund. The Bond Ordinance requires that the District deposit all Operating Revenues into the Revenue Fund from time to time as and when received. The Bond Ordinance also requires that the District apply moneys in the Revenue Fund, prior to the occurrence and continuation of an Event of Default under the Bond Ordinance, in the following order of priority: (1) to pay Expenses of Operation and Maintenance; (2) to deposit into the Sinking Fund the amounts required by the Bond Ordinance, as described below under the heading captioned “Deposits to and Uses of Money in the Sinking Fund”; (3) to make Replenishment Payments (as defined herein) to the Debt Service Reserve Account and to pay to any Credit Facility Provider any amounts due under any Credit Facility Agreement, including Additional Interest; (4) to deposit into the Rebate Fund the amounts required by the Bond Ordinance; (5) to pay any amounts due any Reserve Account Credit Facility Provider pursuant to a Reserve Account Credit Facility Agreement; (6) to deposit the amounts required to be deposited into the funds and accounts created by any Series Ordinance authorizing the issuance of Subordinate Bonds, for the purpose of paying Principal of (whether at maturity, upon mandatory redemption or as otherwise required by a Series Ordinance relating to Subordinate SRF Bonds) and interest on Subordinate Bonds, making Hedge Payments under Subordinate Hedge Agreements, and accumulating reserves for such payments; (7) to make Accumulation Payments to the Debt Service Reserve Account in accordance with the Bond Ordinance; and 18 (8) to pay any amounts required to be paid with respect to any Other System Obligations. In addition to, and after, the deposits described above, the District may from time to time deposit into the Renewal and Extension Fund any moneys and securities held in the Revenue Fund in excess of 45 days’ estimated Expenses of Operation and Maintenance. If at any time the amounts in any account of the Sinking Fund are less than the amounts required by the Bond Ordinance, and there are not on deposit in the Renewal and Extension Fund available moneys sufficient to cure any such deficiency, as described herein under the subsection captioned “Deposits to and Uses of Moneys in the Renewal and Extension Fund,” then the District shall withdraw from the funds and accounts of the District relating to Subordinate Bonds which are not Subordinate SRF Bonds and deposit in such account of the Sinking Fund, as the case may be, the amount necessary (or all the moneys in such funds and accounts, if less than the amount required) to make up such deficiency. Deposits to and Uses of Moneys in the Sinking Fund. After the District deposits all Operating Revenues into the Revenue Fund and applies such moneys to pay Expenses of Operation and Maintenance, then the Master Bond Ordinance provides for deposits to and uses of moneys in the accounts and subaccounts in the Sinking Fund as follows: Payments Account – General. Sufficient moneys shall be paid in periodic installments from the Revenue Fund into the Payments Account for the purpose of paying the Principal of and interest (excluding Additional Interest) on the Senior Bonds as they become due and payable and for the purpose of making Hedge Payments under Senior Hedge Agreements. Amounts held in the Payments Account shall be used solely to pay interest (excluding Additional Interest) and Principal of the Senior Bonds as the same become due and payable (whether at maturity or upon redemption) and to pay Hedge Payments under Senior Hedge Agreements when due. As of the date of this Official Statement, there are no Senior Hedge Agreements or Subordinate Hedge Agreements in effect. Interest. Except as otherwise provided in any Series Ordinance authorizing Senior SRF Bonds, on or before the 30th day preceding each Interest Payment Date for Senior Bonds (or, in the case of Senior Bonds bearing interest at a Variable Rate, on or before the Business Day preceding each Interest Payment Date), the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment and, in the case of Senior SRF Bonds, anticipated investment earnings on reserve funds held by a bond trustee relating to such Senior SRF Bonds, is not less than the interest (excluding Additional Interest) coming due on such Senior Bonds on such Interest Payment Date. The District shall also deposit and continue to deposit all Hedge Receipts under Senior Hedge Agreements in the Payments Account from time to time as and when received. Principal. Except as otherwise provided in any Series Ordinance authorizing Senior SRF Bonds, on or before the 30th day preceding each Principal Maturity Date for Senior Bonds, the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than the Principal coming due on such Senior Bonds on such Principal Maturity Date. Hedge Payments. On or before the 30th day preceding each payment date for Hedge Payments under Senior Hedge Agreements, the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than such Hedge Payments coming due on such payment date. 19 Application of Moneys in Payments Account. No further payments need be made into the Payments Account whenever the amount available in the Payments Account, if added to the amount then in the Debt Service Reserve Account (without taking into account any amount available to be drawn on any Reserve Account Credit Facility), is sufficient to retire all Senior Bonds then Outstanding and to pay all unpaid interest accrued and to accrue prior to such retirement. No moneys in the Payments Account shall be used for or applied to the optional purchase or redemption of Senior Bonds prior to maturity unless: (i) provision shall have been made for the payment of all the Senior Bonds; or (ii) such moneys are applied to the purchase and cancellation of Senior Bonds which are subject to mandatory redemption on the next mandatory redemption date, which falls due within 12 months, such Senior Bonds are purchased at a price not more than would be required for mandatory redemption, and such Senior Bonds are cancelled upon purchase; or (iii) such moneys are applied to the purchase and cancellation of Senior Bonds at a price less than the amount of Principal which would be payable on such Senior Bonds, together with interest accrued through the date of purchase, and such Senior Bonds are cancelled upon purchase; or (iv) such moneys are in excess of the then required balance of the Payments Account and are applied to redeem a part of the Senior Bonds Outstanding on the next succeeding redemption date for which the required notice of redemption may be given. Deposits to and Uses of Moneys in the Debt Service Reserve Account. The Bond Ordinance provides that with respect to Senior Bonds which are not Senior Uncovered Bonds that the Debt Service Reserve Account will be funded in an amount equal to the Debt Service Reserve Requirement for the Senior Bonds which are not Senior Uncovered Bonds. The Bond Ordinance requires that the District deposit into the Debt Service Reserve Account the amounts specified in the Series Ordinances with respect to Senior Bonds. Notwithstanding the foregoing, there shall be no deposit into the Debt Service Reserve Account with respect to any SRF Bonds or Senior Uncovered Bonds nor shall the Debt Service Reserve Account secure any SRF Bonds or Senior Uncovered Bonds. The Series 2022B Bonds are Senior Uncovered Bonds and therefore are not secured by the Debt Service Reserve Account. Whenever for any reason the amount in the Payments Account is insufficient to pay all interest or Principal becoming due on the Senior Bonds within the next seven days (or, in the case of Senior Bonds bearing interest at a Variable Rate, on the next Business Day), the District shall make up any deficiency by transfers first from the Renewal and Extension Fund and second from the funds and accounts of the District relating to Subordinate Bonds which are not Subordinate SRF Bonds. Whenever, on the date that such interest or Principal is due, there are insufficient moneys in the Payments Account available to make such payment on Senior Bonds (except with respect to Senior SRF Bonds and Senior Uncovered Bonds which are not secured by the Debt Service Reserve Account), the District shall, without further instructions, apply so much as may be needed of the moneys in the Debt Service Reserve Account to prevent default in the payment of such interest or Principal, with priority to interest payments. Whenever by reason of any such application or otherwise (other than required Accumulation Payments, as required in the Bond Ordinance) the amount remaining to the credit of the Debt Service Reserve Account is less than the amount then required to be in the Debt Service Reserve Account, such deficiency shall be remedied by monthly deposits (“Replenishment Payments”) from the Revenue Fund, to the extent funds are available in the Revenue Fund for such purpose after all required transfers set forth above have been made. The District may elect to satisfy in whole or in part the Debt Service Reserve Requirement by means of a Reserve Account Credit Facility, subject to certain requirements as set forth in the Bond Ordinance. See “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto. Deposits to and Uses of Moneys in the Renewal and Extension Fund. All sums accumulated and retained in the Renewal and Extension Fund shall be used first to prevent default in the payment of 20 interest on or Principal of the Senior Bonds when due and then shall be applied by the District from time to time, as and when the District shall determine, to the following purposes and, prior to the occurrence and continuation of an Event of Default, in the order of priority determined by the District in its sole discretion: (a) for the purposes for which moneys held in the Revenue Fund may be applied pursuant to the Bond Ordinance and as described above; (b) to pay any amounts which may then be due and owing under any Hedge Agreement (including termination payments, fees, expenses, and indemnity payments); (c) to pay any governmental charges and assessments against the System or any part thereof which may then be due and owing; (d) to make acquisitions, betterments, extensions, repairs, or replacements or other capital improvements (including the purchase of equipment) to the System deemed necessary by the District (including payments under contracts with vendors, suppliers, and contractors for the foregoing purposes); (e) to acquire Senior Bonds by redemption or by purchase in the open market at a price not exceeding the callable price as provided and in accordance with the terms and conditions of the Bond Ordinance, which Senior Bonds may be any of the Senior Bonds, prior to their respective maturities, and when so used for such purposes the moneys shall be withdrawn from the Renewal and Extension Fund and deposited into the Payments Account for the Senior Bonds to be so redeemed or purchased; and (f) for any other purpose of the District. Rate Covenant The Bond Ordinance provides that the District shall continuously own, control, operate, and maintain the System in an efficient and economical manner and on a revenue producing basis and shall at all times prescribe, fix, maintain, and collect rates, fees, and other charges for the services, facilities, and commodities furnished by the System fully sufficient at all times to: (1) provide for 100% of the Expenses of Operation and Maintenance and for the accumulation in the Revenue Fund of a reasonable reserve therefor; and (2) produce Net Operating Revenues in each Fiscal Year which, together with Investment Earnings: (a) will equal at least 125% of the Debt Service Requirement on all Senior Bonds then Outstanding for the year of computation and 115% of the Debt Service Requirement on all Bonds then Outstanding for the year of computation; (b) will enable the District to make all required payments, if any, into the Debt Service Reserve Account and the Rebate Fund and to any Credit Facility Provider, any Reserve Account Credit Facility Provider, and any Qualified Hedge Provider; (c) will enable the District to accumulate an amount to be held in the Renewal and Extension Fund which, in the judgment of the District, is adequate to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System, necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction over the System; and (d) will remedy all deficiencies in required payments into any of the funds and accounts established under the Bond Ordinance from prior Fiscal Years. If the District fails to prescribe, fix, maintain, and collect rates, fees, and other charges, or to revise such rates, fees, and other charges, in accordance with these provisions of the Bond Ordinance, the owners of not less than 25% in aggregate Principal amount of the Bonds then Outstanding, without regard to whether any Event of Default shall have occurred, may institute and prosecute in any court of 21 competent jurisdiction an appropriate action to compel the District to prescribe, fix, maintain, or collect such rates, fees, and other charges, or to revise such rates, fees, and other charges, in accordance with the requirements of the Bond Ordinance. Senior and Subordinate Bonds Upon satisfaction of certain conditions, the Bond Ordinance permits the District, for specified purposes, to issue additional Senior Bonds without express limit as to principal amount, which will be equally and ratably secured on a parity basis with the Series 2022B Bonds and Outstanding Prior Senior Bonds under the Bond Ordinance. The Debt Service Requirement, as defined in the Bond Ordinance, which is used in the calculation of the additional bonds test, allows the District to take into account the anticipated receipt of U.S. Treasury Interest Subsidy payments to arrive at a net debt service figure with respect to the Series 2010B Bonds issued as “Build America Bonds.” The District may issue additional Senior Bonds in the future to finance part of the cost of capital improvements identified in the District’s Capital Improvement & Replacement Program (the “CIRP”). See the section herein captioned “THE CIRP.” The Bond Ordinance also permits the District to issue Subordinate Bonds which would be secured by a lien on the Pledged Revenues that would be junior and subordinate to the Series 2022B Bonds and any other Senior Bonds. See “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto. Other Indebtedness The Series 2022B Bonds are sewer system revenue bonds secured by and payable from Pledged Revenues on a parity with the Prior Senior Bonds. The District has also issued eighteen series of outstanding Subordinate Bonds. See the section herein captioned “MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW – Outstanding Indebtedness - Other Outstanding Debt” for a summary of the outstanding long-term debt of the District. For more information on the District’s long- term liabilities, see Note 6 in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. PLAN OF FINANCE Purpose of and Authority for the Series 2022B Bonds As previously discussed herein, at a special election held on April 5, 2016, voters within the District approved the Current Authorization. The Current Authorization enables the District to comply with federal and State clean water requirements. The District may use the proceeds of such sewer system revenue bonds for the purpose of designing, constructing, improving, renovating, repairing, replacing and equipping new and existing District wastewater facilities. The District will issue the Series 2022B Bonds to (a) refund the Refunded Bonds, (b) pay a portion of the costs of the Series 2022B Project as described below under the heading “THE CIRP Capital Finance Plans Contemplated Under Consent Decree”, and (c) pay the Costs of Issuance of the Series 2022B Bonds. The Refunded Bonds consist of the Outstanding Series 2012B Bonds maturing in the years 2023 and 2024 (the “Refunded Bonds”). The District has elected to refund the Refunded Bonds pursuant to the provisions of the Master Bond Ordinance, and Ordinance No. 13521 authorizing the issuance of the Series 2012B Bonds. The Refunded Bonds will be redeemed at a redemption price of par plus redemption premium, if any, and accrued interest to the redemption date of the Refunded Bonds pursuant 22 to the Master Bond Ordinance and the Series Ordinances authorizing the issuance of each series of Refunded Bonds. Estimated Sources and Uses of Funds The following table summarizes the anticipated sources and uses of funds in connection with the issuance of the Series 2022B Bonds. Sources of Funds Par amount of Series 2022B Bonds $109,070,000.00 Plus Original Issue Premium 13,734,167.15 Total: $122,804,167.15 Uses of Funds Deposit to Series 2022B Project Account** $113,013,017.71 Deposit for Series 2012B Refunded Bonds 9,382,255.56 Underwriters’ Discount 408,893.88 Total: $122,804,167.15 ______________________________ **Includes costs of issuance [Remainder of page intentionally left blank] 23 DEBT SERVICE SCHEDULE The following table sets forth the debt service requirements for all Outstanding Prior Senior Bonds, the Series 2022B Bonds, and the Subordinate Bonds and total debt service on all System revenue as set forth in the below table. At the time of issuance of the Series 2022B Bonds, no additional debt service payments will be made for Fiscal Year 2022. Year Ending June 30 Debt Service on Outstanding Prior Senior Bonds(1) Debt Service on Series 2022B Bonds Debt Service on Subordinate Bonds(2)(3) Total Debt Service 2023 $ 84,577,942 $ 11,301,087 $ 41,792,693 $ 137,671,722 2024 84,773,224 11,491,563 44,155,085 140,419,872 2025 82,948,510 6,542,313 44,284,780 133,775,603 2026 86,122,237 6,539,813 44,100,128 136,762,178 2027 88,707,363 6,543,313 37,562,595 132,813,271 2028 91,747,833 6,542,313 33,952,624 132,242,770 2029 91,523,502 6,541,813 33,230,012 131,295,327 2030 92,115,637 6,541,563 30,916,667 129,573,867 2031 91,635,172 6,541,313 29,588,759 127,765,244 2032 91,412,637 6,540,813 27,047,755 125,001,205 2033 88,417,242 6,539,813 26,929,755 121,886,810 2034 88,215,529 6,538,063 27,062,410 121,816,002 2035 87,186,986 6,540,313 22,894,070 116,621,369 2036 86,996,180 6,541,063 16,288,048 109,825,291 2037 85,997,894 6,540,063 16,340,978 108,878,935 2038 86,056,384 6,542,063 12,747,279 105,345,726 2039 88,620,299 6,541,563 10,394,255 105,556,117 2040 92,102,314 6,538,313 10,421,949 109,062,576 2041 92,089,663 6,542,063 10,451,270 109,082,996 2042 92,096,232 6,542,063 6,490,512 105,128,807 2043 54,226,828 6,543,063 5,117,278 65,887,169 2044 44,223,982 6,539,563 3,734,117 54,497,662 2045 44,235,447 6,541,313 1,870,898 52,647,658 2046 38,177,469 6,542,563 - 44,720,032 2047 28,634,469 6,542,813 - 35,177,282 2048 15,483,719 6,541,563 - 22,025,282 2049 15,480,719 6,540,651 - 22,021,370 2050 12,038,219 6,540,826 - 18,579,045 2051 4,241,969 6,541,301 - 10,783,270 2052 4,241,969 6,541,288 - 10,783,257 2053 4,241,969 - - 4,241,970 Totals(4) $ 2,038,569,539 $ 205,946,228 $ 537,373,917 $2,781,889,684 _________________ (1) Debt service figures are reduced by a 33% federal interest rate subsidy on the District’s Series 2010B Bonds for the years 2023 through 2030 and by a 35% federal interest rate subsidy thereafter. Such subsidy may be changed or eliminated at any point in the future. (2) Amounts include administrative and DNR fees, but are net of reserve fund earnings. (3) Assumes the full draw amount on all Subordinate Bonds. (4) For the purposes of this Official Statement figures have been rounded. 24 THE DISTRICT General The District is organized pursuant to Article VI, Section 30 of the Missouri Constitution which empowers the people of the County and the City “to establish a metropolitan district for functional administration of services common to the area included therein.” The District is the only special district in the State established pursuant to that section of the Missouri Constitution. The Charter established the District. The District was created to provide a metropolitan-wide system of wastewater treatment and sanitary sewerage facilities for the collection, treatment and disposal of sewage to serve the City and most of the more heavily populated areas of the County. Before the District’s creation, the City, various municipalities in the County 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 in 1956 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 in the County. The District purchased the Fee Fee Trunk Sewer Company and the Missouri Bottoms Sewer Company in 1978. The District has since acquired other investor-owned or municipally-operated systems. The District operates the fourth largest wastewater treatment system in the United States of America. The District’s service area now encompasses approximately 520 square miles including approximately all 66 square miles of the City and approximately 454 square miles (approximately 87%) of the County. Only the far western section of the County is not served by the District. The District provides sanitary sewer collection and treatment and stormwater management to a current population of approximately 1.3 million. As of June 30, 2021, the District served approximately 428,000 accounts, including approximately 362,803 single-family residences, approximately 41,533 multi-family apartments and condos, and approximately 23,960 commercial/industrial businesses. For further description of the District’s service area, see the service area map located on the back cover of this Official Statement. For certain economic and demographic information regarding the City and the County, see Appendix B to this Official Statement. The Charter describes the District as “a body corporate, a municipal corporation and a political subdivision of the state.” The District’s Charter was amended in 2000 in order to update the District’s procedures and improve its operations. The amendments provided additional flexibility and structure to several aspects of District operations, including (1) establishment of an independent 15-member Rate Commission to review adjustments to the District’s wastewater and stormwater charges before the Board acts on them; (2) authorization for the District to issue revenue bonds on a District-wide basis and lowering the margin required for passage of both revenue and general obligation bonds to be consistent with the Missouri Constitution; (3) requiring a mandatory rotation of outside auditors every five years and the appointment of an internal auditor; (4) requiring a periodic independent management audit; and (5) permitting the investment of the District’s funds in the same manner as authorized by the Missouri Constitution for the investment of State funds. Other amendments to the Charter include (1) limiting the term of (a) Board trustees to two full consecutive terms plus any portion of an unexpired term (provided, however, that a Board trustee shall serve until his/her successor shall be appointed and qualified), and (b) commissioners on the three-member civil service commission (the “Civil Service Commission”) to two terms plus any portion of an unexpired term (provided, however, that each commissioner shall serve 25 until his/her successor shall be appointed and qualified), (2) requiring the publication of Board vacancies, and (3) requiring the Board to make a written report to the Mayor and Board of Alderman of the City and to the County Executive and County Council of the County on an annual basis. Eight additional amendments to the Charter were approved by voters at the special election held on June 5, 2012. The approved changes (1) remove the actual boundaries of the District from the Charter so that boundary changes do not require Charter amendment and are kept by the Office of the Secretary- Treasurer; (2) streamline the process of forming subdistricts; (3) more clearly delineate the District’s responsibility for stormwater management; (4) allow use of electronic media, or such other form of communication as may be required by Missouri law; (5) provide that the budget include a list of capital projects to be undertaken; (6) allow the District to use the design-build approach for projects; (7) provide that each Rate Commission representative organization shall serve until its successor shall be appointed and qualified; and (8) support gender neutrality. Additional amendments to the Charter grouped into five propositions were approved by voters at the election held on April 6, 2021. The approved changes consist broadly of (1) updating language of the Charter and removing obsolete provisions, (2) rules governing the passage of ordinances, (3) the Rate Commission process, (4) increase compensation for Board members and the Civil Service Commission, and (5) the competitive bid process for auditors. The Charter requires the District to adopt a continuing five-year strategic and operating plan on an annual basis. The strategic and operating plan states the District’s objectives for the succeeding five years and includes objective targets against which the District’s performance in meeting these objectives is measured. The District is subject to the provisions of the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq. (commonly referred to and defined herein as the, “Clean Water Act”), the stated objective of which is to restore and maintain the chemical, physical, and biological integrity of the nation’s waters. The District is also subject to the Missouri Clean Water Law, Sections 644.006 through 644.141 of the Revised Statutes of Missouri, as amended (the “Missouri Clean Water Law”), and other laws and regulations. The regulatory requirements are administered by the United States Environmental Protection Agency (“EPA”) through the DNR. See the section herein captioned “REGULATORY REQUIREMENTS”. Organization and Management General. The Charter established the Board as the governing body of the District. The Board is composed of six members, with three members appointed by the Mayor of the City and three members appointed by the County Executive of the County. No more than two trustees from each area can be of the same political affiliation. According to the Charter, 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 officers. 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 Board’s standing committees include Audit, Finance, Pension, Program Management and Stakeholder Relations. Administration of district-wide operations is by the executive staff under the direct supervision of the Executive Director. The Civil Service Commission serves in an advisory position regarding personnel administration and civil service matters, and hears appeals of disciplinary actions. The 15-member Rate Commission, an advisory body established pursuant to the amendments to the Charter adopted on November 7, 2000 (the “Rate Commission”) makes recommendations to the Board regarding all 26 proposed changes in wastewater rates, stormwater rates and tax rates or regarding changes in structure to the foregoing. See the section herein captioned “MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW – Rate Commission and Rate Setting Process”. Board of Trustees The current members of the Board are as stated below. Currently, there are no vacancies on the Board. Name Current Term Expires Michael Evans, Chair March 15, 2025 Amy Fehr, Vice Chair March 15, 2024 Brian Wahby, Member March 15, 2024 Greg Nicozisin, Member March 15, 2025 Ret. Col. Richard Wilson, Member March 15, 2022 Brian K. Watson, Member March 16, 2026 Set forth below is certain biographical information on the members of the Board. Michael Evans, Chair (St. Louis City). Mr. Evans is an attorney at the law firm of Hartnett Reyes-Hones LLC. Mr. Evans has served on the Board since August 14, 2020. Amy Fehr, Vice Chair (St. Louis County). Ms. Fehr is an attorney with the law firm of Capes, Sokol, Goodman & Sarachan, P.C. She has served on the Board since September 6, 2019. Brian Wahby, (St. Louis City). Mr. Wahby is the President and CEO of Eximus Productions, an event production company. He has served on the Board since January 20, 2021. Greg Nicozisin, (St. Louis County). Mr. Nicozisin is a Pipefitter with Plumbers and Pipefitters Local Union 652. He has served on the Board since March 16, 2021. Ret. Col. Richard Wilson (St. Louis City). Ret. Col. Wilson is a retired colonel in the United States Army, and has served on the Board since February 10, 2020. Brian K. Watson (St. Louis County). Mr. Watson is the Business Agent/Recording Secretary for the Laborers’ International Union of North America, Local No. 42. He has served on the Board since March 16, 2021. Administration Management of the District is provided by a management team that reports to the Board, including an Executive Director, Secretary-Treasurer, Assistant Secretary-Treasurer, Internal Auditor, General Counsel, and Directors of Finance, Engineering, Human Resources, Operations and Information Systems. Set forth below is certain biographical information regarding selected members of the executive management staff of the District. Brian Hoelscher, P.E., Executive Director. Mr. Hoelscher served as the District’s Director of Engineering for more than nine years before his appointment as Executive Director on March 27, 2013. As the Director of Engineering, he was responsible for the delivery of the District’s CIRP as well as other environmental and regulatory duties. Mr. Hoelscher held several other management positions in the District’s engineering department prior to his tenure as Director of Engineering. Before joining the District in May 1995, Mr. Hoelscher served as the St. Louis area office manager for consulting engineers 27 Consoer, Townsend, Envirodyne Engineers of Missouri, Inc. (now AECOM). Mr. Hoelscher has a Bachelor of Science in Chemical Engineering from Washington University in St. Louis, and is licensed as a professional engineer in Missouri and Illinois. Tim R. Snoke, Secretary-Treasurer. Mr. Snoke joined the District as Secretary-Treasurer in May 2014. Before becoming Secretary-Treasurer, he spent 21 years at the former Ralcorp Holdings, Inc. in various finance and treasury management positions, most recently as Assistant Treasurer. Mr. Snoke holds a Bachelor of Science degree in Business Administration from Valparaiso University and a Masters of Business Administration from Saint Louis University. John Strahlman, Assistant Secretary-Treasurer. Mr. Strahlman was hired by the District in January 2015. His previous experience includes treasury management positions at Metropolitan Pier and Exposition Authority in Illinois, and at the Cook County, Illinois Treasurer’s office. He holds a Bachelor of Science degree in Public Finance from Indiana University and a Masters of Business Administration from DePaul University. Susan M. Myers, General Counsel. Ms. Myers has been employed by the District as in-house counsel since 2001 and was promoted to General Counsel in 2011. Prior to joining the District, she served as an environmental engineer for two years with EPA Region VII in RCRA Permitting and for nine years on a billion dollar Department of Energy Superfund clean-up project. Ms. Myers earned her law degree from the Saint Louis University School of Law and a Bachelor of Science in Geological Engineering from the University of Missouri-Rolla (currently Missouri University of Science and Technology). Marion M. Gee, Director of Finance. Mr. Gee was hired by the District in September 2015. Mr. Gee most recently served as Assistant Finance Director for the City of San Antonio, Texas. He previously served as the Finance Director for the Louisville Metropolitan Sewer District for 11 years. Mr. Gee is a certified public accountant and has a Bachelor of Science in Business Administration and a Masters of Business Administration, both from the University of Louisville. Richard Unverferth, P.E., Director of Engineering. Mr. Unverferth has served as the District’s Director of Engineering since May 2013. Prior to his current position, he held numerous positions in the District’s Engineering and Operations departments. Mr. Unverferth has a Bachelor of Science in Civil Engineering from the University of Missouri-Rolla (currently Missouri University of Science and Technology), and is a licensed professional engineer in Missouri. Tracey Coleman, Director of Human Resources. Ms. Coleman has served as the Director of Human Resources at the District since 2018. Before her promotion to her current position, Ms. Coleman was the Manager of Training and Organizational Development at the District. Before joining the District, she held positions at Laclede Gas, Edward Jones, HealthLink and A.G. Edwards. Ms. Coleman received her Master’s Degree from Webster University and a Chancellor’s Certification in Database Technology from the University of Missouri-St. Louis. Bret A. Berthold, P.E., Director of Operations. Mr. Berthold was named the District’s Director of Operations in December 2018. Mr. Berthold joined the District in April 2009 as the Operation Division Manager at the Bissell Point Wastewater Treatment Plant and transitioned to the Assistant Director of Operations position in September 2011. Before joining the District, Mr. Berthold held several positions at Spectrum Brands, Inc. Mr. Berthold received a Bachelor of Science in Mechanical Engineering from Missouri University of Science and Technology (formerly, University of Missouri – Rolla) and a Masters of Business Administration from Webster University. 28 Jonathon C. Sprague, P.E., Director of Information Systems. Mr. Sprague has been the Director of Information Systems for the District since December 2018. Before his promotion to his current position, he joined the District in May 2005 as Assistant Director of Operations and became the District’s Director of Operations in 2007. Mr. Sprague has a Bachelor of Science in Electrical Engineering from The University of Akron and a Masters of Business Administration from the College of William and Mary. The System The District owns and operates the System, which consists of sanitary, stormwater and combined collection sewers, pumping stations, and wastewater treatment facilities in its service area. The District provides sewer collection, pumping and treatment services within three major watersheds located within the District’s service area, including the Mississippi River watershed, the Missouri River watershed and the Meramec River watershed. In addition, the District provides a variety of other services, including sanitary sewer maintenance, stormwater sewer maintenance, floodwater control, monitoring of industrial waste, issuance of pretreatment discharge permits, engineering design and specification, construction of sewer lines, plan review and approvals, issuance of connection permits, public education and customer service. Collection and Trunk Sewers. As of October 1, 2021, the District owns and maintains 9,365 miles of collection and trunk sewers and force mains, ranging in size from six inches to 29 feet in diameter. They are classified as one of three types: wastewater, storm or combined. Sanitary sewers accommodate household and industrial waste. Storm sewers carry rainwater and surface water runoff. Combined sewers carry both types of waste. The System currently includes approximately 4,724 miles of wastewater sewers and force mains, approximately 2,980 miles of stormwater sewers and force mains, and approximately 1,661 miles of combined sewers that handle both wastewater and stormwater flows. Maintenance of the System is controlled and conducted out of three regional facilities. Pumping Stations and Force Mains. The District currently owns and maintains 282 pumping stations and 134 miles of force mains (which are included in the sewer system totals above). Pump station and force main support is divided into three geographic regions under a pump station manager. All pump stations are maintained regularly and monitored continuously by telemetry. Of the 282 stations, 40 are floodwall (overflow regulation and wet weather relief tank stations), 4 are stormwater and the remaining 238 are wastewater and combined sewage pump stations which move the flow of wastewater through the wastewater system and into District treatment plants. Wastewater Treatment Facilities. The District currently owns and operates seven wastewater treatment facilities. These facilities treated an average flow of 332.7 million gallons of wastewater per day for the District’s previous five Fiscal Years 2017 to 2021. The Bissell Point and Lemay wastewater treatment plants are the District’s two largest plants. Both of these plants serve the Mississippi River watershed. The Coldwater Creek and Missouri River wastewater treatment plants service the Missouri River watershed. The remaining wastewater treatment plants serve the Meramec River watershed. Employees and Employee Relations The District had 1,017 budgeted positions for Fiscal Year 2022, of which 930 are filled. Approximately 85.6% of the District’s employees within the Operations Department are represented by one of five unions: American Federation of State, County and Municipal Employees; Bricklayers; International Brotherhood of Electrical Workers; International Union of Operating Engineers; and Service Employees International. The District has entered into new collective bargaining agreements with all of its bargaining units in 2020, with contracts for each bargaining unit that extend through June 30, 29 2024. Salary increases between FY 2020 and FY 2024 average 3% annually. The District also retains private companies and consultants from time to time to supplement and expand its existing staffing resources. Economic Conditions in the District Generally, the District’s major revenue sources do not fluctuate with the local and national economies as much as local governments that depend on sales or income taxes for their major sources of revenue. The District uses several measures to forecast economic development in the District. Such factors are listed below for Fiscal Years 2017 through 2021: 2017 2018 2019 2020 2021 Sewer Plan Reviews: Number of Plans Approved 524 673 514 435 525 Number of Miles of Sewers 34 49 46 41 44 Sewer Construction Permits: Number of Permits Issued 4,523 3,769 3,792 2,277 2,130 Number of Miles of Sewers 23 25 24 23 21 Customer Connections: Number of Connection Permits Issued 2,490 2,178 2,384 1,742 1,621 Connection Fee Revenue $2,076,413 $1,249,104 $922,979 $919,405 $1,600,000 Value of Sewers Dedicated to the District by Developers $6,807,147 $24,800,000 $16,600,000 $6,500,000 $12,900,000 _________ Source: District Over the years, the City and County’s economies have each undergone a transformation from reliance on traditional manufacturing industries to those industries based on advanced technology and service. The St. Louis area is a center for health care, banking, finance, transportation, tourism, and education and has a strong and diverse manufacturing economy. The combined unemployment rate for the City and County was 5.8% in June 2021, which was lower than the national unemployment rate of 5.9% for the same time period. The June 2021 unemployment rate of 5.8% is lower than the June 2020 rate of 9.6% due to the diminishing impact of COVID-19 (as defined herein). For more information on economic and demographic trends in the City and the County, see Appendix B hereto. Security The System is subject to safety and security inspections on a continuing basis by the District. All treatment plants are maintained as secure facilities with fences, locked gates and electronic surveillance equipment. The District does not represent that any existing or additional safety or security measures will be adequate in the event that terrorist activities are directed at the System. Further, damage to components of the System could have a material adverse impact on the District’s expenditures for repairs to the System. Insurance The District maintains third-party commercial insurance coverage for various risks while self-insuring for other risks and liabilities. Presently commercial insurance coverage is maintained for 30 officers’, directors’ and general liability, property, boiler and machinery, excess flood and earthquake, combined liability, cyber liability, business auto liability, excess workers’ compensation, public entity fiduciary liability, crime, contractors equipment (inland marine), major facility pollution liability, employment practices liability, cleanup costs associated with the release of petroleum from covered storage tanks, and sewer backup (blocked line and overcharged line). Such policies contain liability limits, deductions and retentions that management of the District believes to be customary for similar enterprises. Total premiums for third-party insurance coverage for Fiscal Year 2021 were $5,880,367, an approximately 40.8% increase from Fiscal Year 2020. In addition, the District has established a risk management program and self-insures a portion of the risk related to its obligation to provide workers’ compensation and medical and hospitalization benefits to its employees and water backup claims of its customers. The estimated liabilities for payment of incurred (both reported and unreported) but unpaid claims relating to these matters are included in the District’s financial statements as a component of current deposits and accrued expenses. As of June 30, 2021 and 2020, these liabilities amounted to $5,148,770 and $4,755,168, respectively. 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. For more information regarding the District’s self-insurance program, see Note 10, Self- Insurance Programs, to the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. The District has taken several actions to mitigate cyber threats and the business disruptions associated therewith, including enhancing the District’s security in relation to cyber threats. The District has reorganized its Information Technology Department to include a security division with two full time security specialists and has hired a Chief IT Security Officer that is shared with other government service providers. The focus of these new hires is to improve the District’s cybersecurity tools, operating procedures and incident response protocols. The District also included security and disaster recovery initiatives to its Fiscal Year 2022 strategic plan. These actions provide for additional resources for monitoring and provide for disaster recovery to help prevent and minimize the risk of a cybersecurity incident. See “RISK FACTORS – Cybersecurity Risks” herein. THE CIRP General The District developed the CIRP in 2004 which identifies proposed expenditures by the District for capital improvements to the District’s sewer facilities over the next several decades. The general objectives of the CIRP are to meet federal and State requirements and District policy regarding water pollution control, to provide a satisfactory level of service to users of the District’s sewer system, including reduction of building back-ups, and to continue the District’s program to rehabilitate its infrastructure system. The CIRP addresses the District’s infrastructure capital improvement projects involving the construction, repair, replacement and upgrade of sanitary and combined sewers, force mains, pump stations, tanks, tunnels, treatment plants, and stormwater sewers. The District has designated the portion of the CIRP improvements agreed to under the Consent Decree (as defined herein), hereinafter defined, as “Project Clear.” This multi-decade Project Clear effort is estimated to cost $6 billion dollars (in 2018 dollars), with $2.1 billion dollars of capital improvement expenditures for improvements to the System being funded from Fiscal Year 2012 through the end of Fiscal Year 2021. As of May 5, 2022, the District has met all requirements related to Project Clear dictated by the Consent Decree within mandated deadlines and within budget. 31 Historical Capital Improvement Expenditures Before 2004, the District financed substantially all of the capital improvements to its facilities from available revenues on a “pay-as-you-go” basis. Since Fiscal Year 2004 the District has paid for more than $2.8 billion in capital improvements through a combination of debt financing and “pay-as-you-go” financing. Since the District began implementation of the CIRP in 2004, the District has completed project improvements in the following categories: increasing wastewater treatment capacity; increasing quality of treatment levels to meet new regulations; finishing construction of a new wastewater treatment plant; improving infrastructure to reduce combined sewer overflows; improving infrastructure to reduce and eliminate sanitary sewer overflows; and rehabilitating and replacing aging infrastructure. Financing Plans for the CIRP There are two primary funding sources for financing the capital improvements identified in the CIRP: (1) debt, including certain Bonds issued under the Bond Ordinance; and (2) available Operating Revenues on a “pay-as-you-go” basis. The District will use the proceeds of previously issued Bonds, a portion of the proceeds of the Series 2022B Bonds and any Bonds issued by the District in the future under the Bond Ordinance to finance the infrastructure projects identified in the CIRP. The voters approved the issuance of $1,720,000,000 of sewer system revenue bonds, all of which have been issued in furtherance of the CIRP, at special elections held on February 3, 2004, August 5, 2008 and on June 5, 2012 (the “Prior Authorizations,” together with the Current Authorization and the 2021 Authorization being referred to herein as, the “Authorizations”). As previously discussed herein, at a special election held on April 5, 2016, voters within the District approved the Current Authorization in furtherance of the CIRP. After the issuance of the Series 2022B Bonds, the remaining amount of the Current Authorization will be $253,126,796. As previously discussed herein, at an election held on April 6, 2021, voters within the District approved the 2021 Authorization in furtherance of the CIRP. The Series 2022B Bonds are not being issued under the 2021 Authorization. The following table sets forth approximate voter approval percentages at the special election for each Authorization. Year of Election Percentage in Favor of Each Authorization 2004 68% 2008 75% 2012 85% 2016 76% 2021 82% Some of the major projects constructed in part or in whole with proceeds of the Prior Authorizations were the Lower Meramec Treatment Plant, $177,000,000; Deer Creek Sanitary Tunnel (Clayton Road to RDP), $150,000,000; Maline Creek CSO BP 051 & 052 Local Storage Facility, 32 $86,000,000; Coldwater Creek Treatment Plant Improvements, $61,000,000; Missouri River Treatment Plant Rehab and Improvements, $52,000,000; Grand Glaize Plant Improvements, $35,000,000; CSO/SSO Collection System Improvements, $80,000,000; Lemay Treatment Plant Improvements, $40,000,000; Maline Creek CSO BP 051 & 052 Local Storage, $86,000,000; Lemay Pump Station No. 1 Redundant Force Main, $25,000,000; Coldwater Sanitary Relief Section B, C, and D Wet Weather Storage Facility Tank C, $20,000,000; Lemay WWTP Secondary Improvements, $15,000,000; Missouri River WWTP Secondary Treatment Expansion and Disinfection, $20,000,000; Maplewood – Blendon Combined Sewer Relief, $11,000,000; Bissell & Lemay WWTP Incinerator Scrubber Replacement, $8,000,000; and FF-11 Fee Fee Creek Sanitary Relief, $7,000,000. Some of the major projects to be constructed in part or in whole with the proceeds of the Current Authorization include: Bissell & Lemay Fluidized Bed Incinerators, $575,000,000; Lower Meramec WWTF Expansion Phase II, $117,000,000; MC-02 Watson to Edgar Rd Sanitary Relief, $9,954,000; Harlem Cityshed Mitigation Basins (Ashland and Essex), $5,500,000; and Florissant/Dunn Sanitary Relief (St. Anthony Ln to I-270), $4,910,000. Total Capital Expenditures under CIRP The following table sets forth the District’s historic capital improvement expenditures for improvements to the System for Fiscal Years 2012 through 2021, including expenditures funded both by Bond proceeds and on a “pay-as-you-go” basis: Fiscal Year Ending June 30 Capital Improvement Expenditures 2012 $ 134,909,742 2013 151,321,500 2014 158,323,507 2015 196,100,162 2016 216,933,464 2017 249,487,948 2018 225,481,370 2019 221,248,644 2020 265,681,966 2021 290,256,122 Total: $2,109,744,425 ___________________ Source: District Capital Finance Plans Contemplated Under Consent Decree The District is currently constructing a multi-billion dollar, multi-decade CIRP to update and rehabilitate the District’s aging wastewater collection and treatment system. The Board has approved a budget that identifies proposed appropriations by the District for wastewater capital improvements of approximately $336 million during the District’s Fiscal Year ending June 30, 2022, for a portion of the projects that are included in the CIRP. The District estimates that the cost of the CIRP for the period of Fiscal Year 2022 through Fiscal Year 2024 will be approximately $1.2 billion. Approximately 40% of the total major capital improvement expenditures for Fiscal Year 2022 to Fiscal Year 2024 are anticipated to be funded from operating revenues and the drawdown of available fund balances and the remaining approximately 60% is expected to be funded by the issuance of 33 additional debt, including the Series 2022B Bonds, pursuant to the Current Authorization as further described herein. The District’s capital program in Fiscal Year 2022 includes more than 120 projects, a portion of which will be financed with the proceeds of the Series 2022B Bonds (the “Series 2022B Project”), “pay-as-you-go” revenues of the System and future financings under the Bond Ordinance. Among these projects, some of which are multi-year efforts, are the following projects which are budgeted at $10 million or more in Fiscal Year 2022: Project Name Task Description Fiscal Year 2022 Budget LOWER MERAMEC RIVER SYSTEM IMPROVEMENTS - BAUMGARTNER TO FENTON WWTF TUNNEL Construction (Supplemental Appropriation) $48,000,000 JEFFERSON BARRACKS TUNNEL (LEMAY WWTP TO MARTIGNEY PS) Construction (Supplemental Appropriation) $35,000,000 LOWER MERAMEC WWTF EXPANSION PHASE II Construction $30,000,000 DC-02 & DC-03 SANITARY RELIEF (BRENTWOOD BLVD TO CONWAY RD) PHASE III AND PHASE IV Construction (Supplemental Appropriation) $17,500,000 LOWER MERAMEC WWTF - INFLUENT PUMP STATION IMPROVEMENTS Construction $17,500,000 DEER CREEK SANITARY TUNNEL (CLAYTON RD TO RDP) - PUMP STATION Construction (Supplemental Appropriation) $15,000,000 BISSELL POINT WWTF TRICKLING FILTER MEDIA REPLACEMENT Construction (Supplemental Appropriation) $11,000,000 Source: District Other planned CIRP improvements in Fiscal Years 2022 through 2024 expected to be included in the approximately $1.2 billion of capital projects during this timeframe include: • infrastructure improvements to reduce combined sewer overflows; • infrastructure improvements to eliminate sanitary sewer overflows; • wastewater treatment plant improvements and repairs at various facilities; • collection systems renewal and replacement activity; and • planning and capacity, management, operation and maintenance activity. See Appendix D – “FEASIBILITY REPORT – CIRP Financing” for a summary of the projected CIRP Financing Plan for Fiscal Years 2022 through 2024. FINANCIAL OPERATIONS OF THE DISTRICT General The District is supported by various taxes and user charges imposed on taxpayers and users of its facilities within its boundaries. The District has the power, subject to voter approval, to issue general obligation bonds, District-wide revenue bonds, sub-district revenue bonds, or special assessment bonds. The Executive Director is responsible for preparing the annual budget of the District and is responsible for drawing warrants to meet the financial obligations of the District. The Executive Director appoints the Director of Finance, who is responsible for assisting the Executive Director in preparing the annual budget, maintaining the accounting records of the District, and certifying that all warrants are proper and valid under the District’s Charter. The Secretary-Treasurer is appointed by the Board and is responsible for custody of the funds of the District and investing the funds of the District pursuant to the Charter of the District and State law. 34 Budget and Appropriation Process The Executive Director of the District is responsible for preparing the District’s annual budget. Not later than the fifteenth day of March in each year, the Executive Director must submit to the Board a budget for the ensuing year. The Charter requires that the Board adopt the budget no later than June 30. In the event that the Board does not pass a new budget by June 30, the prior year’s budget continues in force until the Board adopts a new budget. The proposed budget is available for public inspection and the District conducts public hearings on the proposed budget prior to its adoption. On or before the thirtieth day of June in each Fiscal Year the Board determines the amount of taxes that will be required during the next succeeding Fiscal Year to pay the principal of and interest on general obligation bonds issued and certain costs of operations, maintenance, construction and improvements. At this time, there are no general obligation bonds outstanding. The budget provides a complete financial plan for the budget year for all District funds. In no event can the total amount of expenditures for the budget year from any fund exceed the estimated revenues to be actually received plus any unencumbered balance or less any deficit estimated for the beginning of the budget year. After submittal of the budget to the Board, the Board must hold a public hearing at least 21 days before adoption of the budget in order to obtain public comment on the proposed budget. The Board instituted “zero-based budgeting” in the development of the District’s annual budget. This budgeting process breaks the District’s budget into two distinct sections: (i) a base budget representing the cost to run basic operations and (ii) an incremental budget representing initiatives that are tied directly to the District’s Strategic Business and Operating Plan. Both sections undergo multiple reviews to ensure that planned expenditures are justified and appropriate for the supported business activity. For the incremental budget, an expenditure cannot be justified solely by a like expenditure in a previous year; the expenditure has to clearly support a business objective from the District’s Strategic Business and Operating Plan. The use of zero-based budgeting has played a strong part in helping to keep key areas of the District’s budget at or below the rate of annual inflation. Finance Department The Finance Department is enhancing its efforts to substantially reduce its portfolio of accounts receivable, using a combination of internal collection efforts and liens. In addition, a portion of the District’s past-due collections has been outsourced to several outside vendors (collection agencies and law firms). These agencies and firms focus on collecting overdue sewer bills from rate payers and during Fiscal Year 2021 they collected approximately $38.8 million on behalf of the District. The Government Finance Officers Association of the United States of America and Canada has honored the District for excellence in budgeting, financial accounting and full disclosure. In 2021, for the 34th consecutive year, the District earned the Distinguished Budget Presentation Award, the highest form of recognition in governmental budgeting. In 2020, for the 33rd consecutive year, the District also received the Certificate of Achievement for Excellence in Financial Reporting, the highest recognition in governmental accounting and financial reporting. The District also received the Government Finance Officers Association of the United States and Canada Award for Outstanding Achievement in Popular Annual Financing Reporting in 2020. The District has received this award for every year since the publication of its first Popular Annual Financial Reporting for Fiscal Year 2012. Fund Structure The General Fund was established to provide for the ordinary operations of the District. Since 1978, all operation and maintenance has been funded out of the General Fund. The General Fund receives revenues from ad valorem property taxes levied on all property, real and personal, within the District’s 35 boundaries based on assessed valuations established by the City and County assessors. Tax rates vary by subdistrict and purpose, and are levied in accordance with the Charter of the District. The District discontinued levying real and personal property taxes after Fiscal Year 2008 as a result of the impervious stormwater charge which it began collecting in March 2008. The District rescinded its stormwater impervious charge as a result of a July 9, 2010 court decision which declared the charge unconstitutional. Property taxes were reinstated effective December 31, 2010, to partially replace this stormwater funding. On April 5, 2016, a special election was held in which 62% of voters in the District’s service area approved Proposition S. The approval of Proposition S put all District customers under the same property tax rates to pay for stormwater service and, in turn, all District customers would receive the same level of stormwater service. This process occurred gradually throughout Fiscal Year 2017. Proposition S allows the District to rollback and eliminate several existing taxes, eliminate the stormwater fee and, in lieu of these funding mechanisms, institute or leave in place two taxing districts that cover the District’s entire service area; however, stormwater revenues do not constitute Pledged Revenues securing and payable to the Series 2022B Bonds. Currently, a main source of income for the General Fund is a wastewater user charge. The General Fund also receives miscellaneous income from a number of sources, and reimbursement of engineering services provides other non-operating funds. The District’s Revenue Funds consist of the Wastewater Revenue Fund and the Stormwater Revenue Fund. Wastewater user charge revenues are deposited into the Wastewater Revenue Fund and revenues from the District’s stormwater service charge are deposited into the Stormwater Revenue Fund. The District also maintains two emergency funds the Wastewater Emergency Fund and the Stormwater Emergency Fund. These funds were created for the purpose of providing funding for emergency work or repairs requiring prompt attention in the operation and maintenance of the District. The work or repairs are of such a nature as to be non-measurable in the budgeting and appropriation of annual revenues. District policy requires minimum balances of $500,000 and $250,000 be maintained in the Wastewater Emergency Fund and the Stormwater Emergency Fund, respectively. As of June 30, 2021, the Wastewater Emergency Fund and the Stormwater Emergency Fund had fund balances of $797,579 and $2,332,664, respectively. Basis of Accounting Throughout a Fiscal 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 District’s 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. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. Financial Statements The accounts of the District are audited annually by an independent firm of certified public accountants. The accounting firm of CliftonLarsonAllen LLP served the District as auditor for the Fiscal Year ended June 30, 2021. The District’s audited financial statements for the Fiscal Year ended June 30, 2021, which includes audited financial statements for the Fiscal Year ended June 30, 2020, are attached hereto as Appendix A. Cash and Investments The following table shows the historic cash and investments for the previous five Fiscal Years. 36 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Unrestricted Cash & Investments (Current) $286,332,159 $300,591,076 $241,181,876 $317,158,516 $289,978,406 Total Unrestricted Cash & Investments $347,607,159 $367,855,784 $409,831,492 $467,823,163 $479,939,604 Days Cash on Hand (No Long-Term Unrestricted) 619 673 516 679 585 Days Cash on Hand(Adds Long-Term Unrestricted) 751 824 877 1001 969 MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW For the Years Ended June 30, 2021 and 2020 The Annual Comprehensive Financial Report of 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 the 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 the management’s knowledge of the transactions, events, and conditions reflected in the financial statements and certain of the fiscal policies that govern the District’s operations. 2021 Financial Audit The District’s financial position improved in Fiscal Year 2021, as evidenced by the increase in net position of $127.3 million. The improvement is due primarily to an increase in net investment in capital assets, subdistrict construction and improvement funds, and unrestricted funds of $114.6 million, $5.0 million, and $11.8 million, respectively; offset by a decrease in debt service funds of $4.1 million. The increase in net investment in capital assets net position is comprised of a $230.5 million increase in net capital assets and a $31.6 million increase in unspent bond proceeds and is decreased by a $139.6 million increase in debt related to capital assets. In addition to these changes to net investment in capital assets net position, the increase in construction-related liabilities of $6.1 million, the recognition of a deferred gain on debt refunding (net of amortization) of $1.4 million and the $0.4 million amortization of deferred losses decreased net investment in capital assets. The sum of these six components nets to the $114.6 million increase in net investment in capital assets net position. The $4.1 million decrease in the debt service funds net position is due primarily to the $4.0 million cash reserves paid out in Fiscal Year 2021 to current refund certain debt. Current, non-current, restricted, and other assets increased $40.6 million or 5.2% 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 levies and collected. Capital assets net of accumulated depreciation increased by $230.5 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 $12.2 million or 7.9% due primarily to an increase in contracts and accounts payable, current portion of bond and notes payable and retainage held on capital projects. Non-current liabilities increased by $110.2 million or 6.4% primarily due to net increases in bonds and notes payable, total OPEB liability and deposits and accrued expenses of $135.1 million, $1.8 million, and $1.6 million, respectively; offset by a decrease in net pension liability of $28.3 million. The net increase in bonds and notes payable is related to the $178.6 million new senior and subordinate debt issued in Fiscal Year 2021 and a net increase in premiums 37 received on debt issuances of $37.4 million due to premiums on the Fiscal Year 2021 new debt exceeding the premium retired resulting from the Fiscal Year 2021 direct placement refunding; offset by $61.2 million for Fiscal Year 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 Year 2021 senior debt payment reclassified to current liabilities payable on new Fiscal Year 2021 debt. Net deferred outflows and inflows decreased by $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. Net position increased $127.3 million or 4.6% over the prior year which was a $22.8 million or 15.2% decrease for the last year’s net position increase. The largest impacts to net position were the decrease in investment income and the increase in interest expense. Total revenue decreased by $17.5 million or 3.6% resulting primarily from the decrease in investment income. Sewer service charges decreased $5.2 million or 1.2% due to the impact of the COVID-19 pandemic on commercial customers’ charges. Other operating revenue decreased $6.7 million or 65.7% primarily due to a lawsuit settlement received on a sewer construction project in Fiscal Year 2020. Property taxes increased $8.2 million or 23.1% due primarily to higher property valuation assessment 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 Year 2021 compared to an unrealized gain recognized in Fiscal Year 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 decreased 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 Year 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% of the interest costs being expensed in Fiscal Year 2021 compared to approximately 63% 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 projected contributed to the District increased in Fiscal Year 2021. The District ended Fiscal Year 2021 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% s a result of decreased receipts from customers and increased payments to employees for services and to suppliers for goods and services. Cash flows from non-capital financing activities increased by $7.7 million or 22.0% due to higher taxes receipts. Cash flows from capital and related financing activities increased by 93.7% million or 30.7% due primarily to a $99.2 million increase in bond proceeds and premiums received in Fiscal Year 2021 compared to Fiscal Year 2020, a decrease of $16.2 million in principal, interest and fees paid on bonds due primarily to the $26.0 million debt service reserves paid out to advance refund debt in Fiscal Year 2020 compared to the $4.0 million paid out in Fiscal Year 2021 to current refund debt, and increases of $2.4 million in capital grants proceeds and $1.1 million 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 different between investments maturing decreased by $69.1 million while investments purchased increased $40.5 million in Fiscal Year 2021 compared to Fiscal Year 2020. 38 Total capital assets, net of accumulated depreciation, increased by $230.5 million or 6.0% over the prior year. Construction in progress contained the majority of the increase of $181.1 million or 17.9% consisting of $299.6 million in additions offset by $118.5 million of assets placed into service. Collection and pumping plant assets increased with net additions of $68.5 million or 3.3%, primarily for capitalization of assets including new and improved sewers, dedicated assets, and infrastructure repairs. Land increased $1.2 million or 1.6% due to the acquisition of easements and other land and general plant and equipment increased $1.1 million or 5.0%. These increases are offset by net treatment and disposal plant and equipment decrease of $21.5 million or 3.4% due to no large projects being capitalized in Fiscal Year 2021 to offset the depreciation charge for the year. For more, detailed information, see Note 4, Capital Assets, in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. See also Appendix A for a more in-depth analysis of the District’s financial position. 2020 Financial Audit The District’s financial position improved in Fiscal Year 2020, as evidenced by the increase in net position of $150.1 million. The improvement is due primarily to an increase in net investment in capital assets and unrestricted funds of $121.2 million and $59.3 million, respectively, offset by a decrease in debt service funds and subdistrict construction and improvement funds of $24.4 million and $6.0 million, respectively. Net capital assets increased $216.2 million offset by a $19.8 million increase in debt related to the capital assets and $65.7 million decrease in unspent bond issuance cash proceeds resulting in an overall $85.5 million decrease to net investment in capital assets. The increase in construction-related liabilities of $2.6 million, the retirement of previously recorded deferred loss on debt refunding due to the Fiscal Year 2020 refunding debt, net of amortization, of $5.5 million, and the recognition of a deferred gain on debt refunding, net of amortization and related deferred loss retirement, of $1.4 million also decreased net investment in capital assets. The $24.4 million decrease in the debt service funds net position is due primarily to the $26.0 million cash reserves deposited into an escrow account in Fiscal Year 2020 to partially advance refund certain debt. Current, restricted and other assets decreased $34.0 million or 4.1% in Fiscal Year 2020. The decrease is predominately due to a decrease in investments offset by an increase in cash due to higher sewer rates charged and maturity of investments. Capital assets net of accumulated depreciation increased by $216.2 million or 6.0% in Fiscal Year 2020 as the result of continued high levels of construction and acquisition of assets by the District. Current liabilities increased by $3.6 million or 2.4% due primarily to an increase in current portion of bond and notes payable and retainage held on capital projects, offset by a decrease in deposits and accrued expenses. Non-current liabilities decreased by $1.6 million or 0.1% primarily due to a $17.6 million decrease in net pension liability and total other OPEB liability, offset by $15.8 million net increase in bonds and notes payable. The net increase in bonds and notes payable is related to the $373.8 million new senior and subordinate debt issued in Fiscal Year 2020, offset by $273.4 million advance refunding of existing debt, $56.6 million for Fiscal Year 2021 senior and subordinate debt payments reclassified to current liabilities, a net decrease in premiums received on debt issuances of $21.4 million due to premiums retired resulting from the Fiscal Year 2020 refunding exceeding the premium on the Fiscal Year 2020 new debt and $6.6 million amortization of premiums, net of discount. The District ended Fiscal Year 2020 with $97.1 million in cash and cash equivalents for an increase of $40.4 million or 71.1% from Fiscal Year 2019. Cash flows from operating activities increased by $32.6 million or 17.6% as a result of increased receipts from customers and decreased payments to suppliers for goods and services, offset by an increase in payments to employees. Cash flows from non- capital financing activities increased by $1.1 million or 3.3%. Cash flows from capital and related financing activities increased by $3.8 million or 1.2% due primarily to $74.8 million increase in bond proceeds and premiums received in Fiscal Year 2020 compared to Fiscal Year 2019, offset by $25.2 39 million increase in principal, interest and fees paid on bonds and $46.5 million increase in spending for capital assets. Cash flows from investing activities decreased by $19.5 million or 17.3%. The decrease primarily stems from the fact that the difference between investments maturing and investments purchased was less in Fiscal Year 2020 compared to Fiscal Year 2019 as more investments matured than were purchased in both years. Total capital assets, net of accumulated depreciation, increased by $216.2 million or 6.0% from Fiscal Year 2019. Collection and pumping plant assets contained the majority of the increase with net additions of $177.9 million or 9.3%, primarily for capitalization of assets including new and improved sewers, dedicated assets and infrastructure repairs. Construction in progress increased $56.6 million or 5.9% consisting of $289.3 million in additions offset by $232.7 million of assets placed into service. Land increased $4.1 million or 5.5% due to the acquisition of easements and other land. These increases are offset by net treatment and disposal plant and equipment decrease of $22.0 million or 3.3% due to no large projects being capitalized in Fiscal Year 2020 to offset the depreciation charge for the year and general plant and equipment decrease of $0.4 million or 1.6%. Sewer Rates and Revenues The primary source of funding for the operation and maintenance of the System is a user charge. The following table shows the typical bill amount for a single family residence per month with the rates approved by the Board for the year indicated and the percentage increase in such charge over the prior year. Fiscal Year Monthly Rate Percentage Change 2018(1) $49.31 10.59% 2019(1) 54.63 10.79 2020(2) 55.57 1.72 2021(2) 56.40 1.50 2022(2) 58.33 3.42 ________________________________ (1) For Fiscal Years 2018 and 2019, a single family residence bill was calculated based on a use of 7 centum cubic feet per month. (2) Effective with Fiscal Year 2020, a single family residence bill was calculated based on a use of 6 centum cubic feet per month. The District’s charges for residential wastewater 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 its non-metered properties. Multi-family residential and commercial and industrial rates are proportionate to the single-family charge and are based on water consumption and the strength of the discharge. Other Sources of Revenue The District has other sources of revenue not securing and pledged to the repayment of the Series 2022B Bonds. Real and personal property taxes are levied by the District. The District discontinued levying real and personal property taxes after Fiscal Year 2008 as a result of the impervious stormwater charge which it began collecting in March 2008; however, the District suspended collection of the impervious stormwater charge and resumed collection of real and personal property taxes in Fiscal Year 2011 as a result of the July 9, 2010 court decision concerning the impervious stormwater charge in which the court determined that the impervious stormwater charge was in violation of the Hancock Amendment. (defined herein). In Fiscal Year 2021, the total real and personal property taxes levied for stormwater was $44 million. On April 5, 2016, a special election was held in which 62% of voters in the District’s service 40 area approved Proposition S. The approval of Proposition S put all District customers under the same property tax rates to pay for stormwater service and, in turn, all District customers would receive the same level of stormwater service. This process occurred gradually throughout Fiscal Year 2017. Proposition S allows the District to rollback and eliminate several existing taxes, eliminate the stormwater fee and, in lieu of these funding mechanisms, institute or leave in place two taxing districts that cover the District’s entire service area; however, stormwater revenues do not constitute Pledged Revenues securing and payable to the Series 2022B Bonds. The District 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 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 or revenue bonds. The issuance of general obligation bonds, payable from a general tax levy on all taxable property within the District or a subdistrict, requires the approval of either a four-sevenths or two-thirds majority of the voters voting at an election held in the District or subdistrict, as the case may be. General obligation bonds outstanding cannot exceed five percent of the assessed valuation of the area benefitted. At this time, there are no general obligation bonds outstanding. Subdistricts may also issue revenue bonds, payable from user charges (which do not constitute Pledged Revenues) after a similar procedure, but require only a simple majority vote. Rate Commission and Rate Setting Process General. The District’s Rate Commission reviews and makes recommendations to the Board regarding all proposed changes in wastewater rates, stormwater rates and tax rates or change in the structure of any of the foregoing. Upon receipt of a rate change notice from the District pursuant to the Charter, the Rate Commission recommends changes in rates to the Board that will be necessary to pay interest and principal falling due on bonds issued to finance assets of the District, the costs of operation and maintenance and such amounts as may be required to cover emergencies and anticipated delinquencies. The Rate Commission has reviewed and recommended all rate increases that were approved by the Board since August 2003. On March 4, 2019, the District submitted a rate change proposal for Fiscal Years 2021-2024 to go through the Rate Commission review process. The rate change proposal included recommended changes to the District’s revenues and expenses. The Board accepted the 2019 Rate Commission’s recommendation report on October 10, 2019. The rates for Fiscal Years 2022, 2023 and 2024 have been accepted, and approved by the Board. Membership. The Rate Commission consists of one representative from each of fifteen organizations within the District, each of which have been identified and designated by the Board as a “Rate Commission Representative Organization.” The organizations selected by the Board are diverse and represent residential customers, commercial and industrial customers, environmental interests, labor interests, community and neighborhood organizations and nonprofit organizations. The previous Rate Commission Representative Organizations were as follows: Missouri Coalition for the Environment Missouri Industrial Energy Consumers North County Incorporated St. Louis County Municipal League 41 Engineers Club of St. Louis League of Women Voters of St. Louis The Mound City Bar Association Missouri Botanical Garden Associated General Contractors of St. Louis Education Plus City of Ladue, Missouri Home Builders Association St. Louis Council of Construction Consumers Greater St. Louis Labor Council Lutheran Senior Services Term of Membership. Pursuant to Section 7.240 of the Charter, each Rate Commission Representative Organization selected by the Board shall have the right to designate a Rate Commission Delegate to the Rate Commission for a term of six years or completion of any unexpired term. The Board shall designate organizations within the District to succeed such Rate Commission Representative Organization, provided, however, that each Rate Commission Representative Organization shall serve until its successor shall be appointed and qualified. Nothing in the Charter shall bar a Rate Commission Representative Organization from being named to successive terms. Rate Setting Process. Pursuant to the Charter, whenever the District proposes or recommends a change in rates, it shall give written notice (“Rate Change Notice”) to the Board and the Rate Commission. Upon receipt of a Rate Change Notice and after review of same, the Rate Commission shall cause at least one public hearing to be held on the record regarding the proposed rate change. The Rate Commission shall issue its rate recommendation report (“Rate Commission Report”) to the Board and to the public no later than 165 days after receipt of a Rate Change Notice. If the Board accepts the Rate Commission Report or if the Board is deemed to have accepted a Rate Commission Report as set forth in the Charter, the Board enacts an ordinance consistent with the Rate Commission Report. The Board may reject, or fail to accept, the Rate Commission Report only upon a finding that such report does not conform to the requirements of the Charter. No ordinance to effect a change in rates shall be introduced for adoption under the Charter prior to the earlier of 45 days after receipt of the Rate Commission Report or 45 days after the date on which the Rate Commission Report is due. Pursuant to the Charter, any change in a rate recommended to the Board by the Rate Commission must be accompanied by a statement of the Rate Commission that the proposed rate change and all portions thereof: (1) is consistent with constitutional, statutory or common law as amended from time to time; (2) enhances the District’s ability to provide adequate sewer and drainage systems and facilities, or related services; (3) is consistent with and not in violation of any covenant or provision relating to any outstanding bonds or indebtedness of the District; (4) does not impair the ability of the District to comply with applicable Federal or State laws or regulations as amended from time to time; and (5) imposes a fair and reasonable burden on all classes of rate payers. 42 Billing and Collections The District bills residential and commercial customers monthly for sewer service charges. As previously described herein (See first paragraph under Sewer Rates and Revenues, above), sewer bills are calculated upon several different bases, including the amount of water used each quarter, the winter quarter usage only or, when water meters are not in use, the structure of the building. For customers whose bills are based upon water usage, the District purchases data from the three water agencies serving the metropolitan area: the St. Louis City Water Division, Missouri-American Water Company and Kirkwood Water. In the City, most single-family homes and smaller multi-unit buildings are not equipped with water meters. There are also a small number of properties in the County that use well water. When no water meter reading is available, the District calculates the bill based on the attributes of the structure, including the number of rooms, toilets, baths and separate showers. Single-family residential properties that have water meters are billed based on the winter quarter water usage. The winter quarter is defined as the 3-month water meter reading taken in January, February, or March. With each July sewer bill the service charges are calculated on a 91-day prorated amount using the previous winter quarter water meter reading. The monthly usage remains the same until the following July, when the process is repeated. For single-family customers who have limited income, the District offers a Customer Assistance program. For eligible customers, the monthly sewer bill is reduced by 50% each month. Commercial and multi-unit properties are billed based on the amount of water used each quarter or, in a few cases, each month. The District’s monthly bill is based on one-third of the prior quarter’s reading and this three-month average is recalculated each month. In the case of commercial properties, there is an additional compliance charge on each month’s bill and the bill may include a surcharge for difficult to treat industrial waste or there may be a reduction factor, based on water used in processing and not entering the sewer system. Multi-unit property owners also have the option of being billed on the winter quarter reading or on each quarter reading. Rate Increases Pursuant to the rate review and setting procedures discussed under the caption “Rate Commission and Rate Setting Process” above, the District submitted to the Rate Commission a request to increase wastewater user charge rates. A Wastewater Rate Change (the “Rate Change”) was presented to the Rate Commission on March 4, 2019. The Rate Commission then initiated proceedings to provide for the submission of written testimony, technical conferences, discovery procedures, a public hearing and post hearing briefs. Pursuant to the Charter, the Rate Commission is required to submit a rate recommendation to the District’s Board of Trustees upon conclusion of its deliberations. On August 16, 2019, the Rate Commission submitted its recommendation to the Board. In that report the Rate Commission found that the Rate Change is necessary to pay (i) interest and principal due on bonds issued to finance assets of the District, (ii) the costs of operation and maintenance of the System, and (iii) such amounts as may be required to cover emergencies and anticipated delinquencies. The Rate Commission recommended rates to the Board for Fiscal Years 2021, 2022, 2023, and 2024. The Board accepted the Rate Commission’s recommendation on October 10, 2019. On June 11, 2020, the Board adopted Ordinance No. 15418, approving the rate for Fiscal Year 2021, which rates were effective as of October 1, 2020. On June 10, 2021, the Board adopted Ordinance No. 15669, approving the rates for Fiscal Years 2022, 2023, and 2024, which rates were effective as of July 1, 2021. 43 Historical and Projected Sewer Rates and Charges The following table sets forth the wastewater sewer user charge rates for Fiscal Years 2018 through 2022. Effective Effective Effective Effective Effective Type of Monthly Charge July 1, 2017 (FY 2018) Actual July 1, 2018 (FY 2019) Actual July 1, 2019 (FY 2020) October 1, 2020 (FY 2021) July 1, 2021 (FY 2022) Base Charge ($/Bill) Billing & Collection Charge $ 6.02 $ 6.67 $ 7.38 $ 5.11 $ 5.29 System Availability Charge 15.50 17.16 18.97 21.29 22.02 Total Base Charge (Residential) $ 21.52 $ 23.83 $ 26.35 $ 26.40 $ 27.31 Compliance Charge ($/Bill) Tier 1 $ 2.95 $ 3.05 $ 3.14 $ 4.44 $ 4.55 Tier 2 58.94 60.89 62.61 62.16 63.64 Tier 3 129.67 133.96 137.75 133.20 136.37 Tier 4 191.56 197.91 203.49 177.60 181.83 Tier 5 250.50 258.79 266.10 222.00 227.29 Total Non-Residential Service Charge $ 24.47 $ 26.88 $ 29.49 $ 30.84 $ 31.86 Volume Charge Metered ($/Ccf) $ 3.97 $ 4.40 $4.87 $ 5.00 $5.17 Unmetered ($/Bill per fixture) Per Room 2.35 2.61 2.89 2.95 3.06 Per Water Closet 8.76 9.70 10.72 11.02 11.40 Per Bath 7.30 8.08 8.93 9.19 9.51 Per Separate Shower 7.30 8.08 8.93 9.19 9.51 Extra Strength Surcharges ($/ton) Suspended Solids over 300 mg/l $ 269.07 $ 277.03 $ 283.87 $ 302.67 $ 309.88 Biochemical Oxygen Demand over 300 mg/l $ 671.63 $ 691.50 $ 708.56 $ 812.94 $ 832.28 Chemical Oxygen Demand over 600 mg/l $ 335.82 $ 345.76 $ 354.30 $ 406.47 $ 416.14 ________________________ Source: Feasibility Report Key: Ccf = hundred cubic feet (approx. 748 gallons); mg/l = milligram per liter The Rate Commission recommended rates to the Board for Fiscal Years 2021, 2022, 2023, and 2024. The Board accepted the Rate Commission’s recommendation on October 10, 2019. On June 11, 2020, the Board adopted Ordinance No. 15418, approving the rates for Fiscal Year 2021, which rates were effective as of October 1, 2020. On June 10, 2021, the Board adopted Ordinance No. 15669, approving the rates for Fiscal Years 2022, 2023, and 2024, which rates were effective as of July 1, 2021. The following table shows the approved rates for Fiscal Years 2022, 2023 and 2024. 44 Type of Monthly Charge Effective July 1, 2021 (FY 2022) Current Effective July 1, 2022 (FY 2023) Proposed Effective July 1, 2023 (FY 2024) Proposed Base Charge ($/Bill) Billing & Collection Charge $ 5.29 $ 5.48 $ 5.68 System Availability Charge 22.02 22.78 23.61 Total Base Charge $ 27.31 $ 28.26 $ 29.29 Compliance Charge ($/Bill) Tier 1 $ 4.55 $ 4.71 $ 4.85 Tier 2 63.64 65.80 67.67 Tier 3 136.37 140.99 144.98 Tier 4 181.83 187.98 193.30 Tier 5 227.29 234.98 241.63 Volume Charge Metered ($/Ccf) $ 5.17 $ 5.35 $ 5.55 Unmetered ($/Bill) Per Room $ 3.06 $ 3.17 $ 3.29 Per Water Closet 11.40 11.80 12.23 Per Bath 9.51 9.84 10.20 Per Separate Shower 9.51 9.84 10.20 Extra Strength Surcharges ($/ton) Suspended Solids over 300 mg/l $ 309.88 $ 320.36 $ 329.43 Biochemical Oxygen Demand over 300 mg/l 832.28 860.43 884.78 Chemical Oxygen Demand over 600 mg/l 416.14 430.22 442.40 _________ Source: Feasibility Report Key: Ccf = hundred cubic feet (approx. 748 gallons); mg/l = milligram per liter [Remainder of page intentionally left blank] 45 Customer Accounts The District imposes a user charge on all customers that use its system of sewers, treatment plants and other facilities. The number of customers per category of accounts is as follows: Number of Customers by Type Last Ten Fiscal Years Fiscal Year Single Family Residential Multi- Family Residential Commercial/ Industrial Total Accounts1 2012 360,354 41,648 24,568 426,570 2013 359,243 41,117 24,441 424,801 2014 358,928 40,951 24,297 424,176 2015 359,317 41,131 24,389 424,837 2016 356,926 41,585 24,001 422,512 2017 360,534 41,697 24,253 426,484 2018 360,957 41,355 24,296 426,608 2019 361,288 41,288 24,095 426,671 2020 361,545 41,365 24,066 426,976 2021 362,803 41,533 23,960 428,296 _________________ Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020 citing to the District’s Finance Department Note: Total accounts listed above are as of June 30 for each Fiscal Year listed. 1 These numbers are based on the District’s year-end financial statements and may differ from the historical numbers shown on Table 4 of the Feasibility Report. These differences are due to presentation requirements for auditing purposes. Largest User Charge Customers The following table lists the District’s ten largest wastewater user charge customers for the Fiscal Year ended June 30, 2021: Customer User Charges Percent of Total InBev Anheuser-Busch $5,329,515 1.25% The City of St. Louis, Missouri 2,088,772 0.49% Sigma-Aldrich 1,839,263 0.43% Missouri-American Water Co. 1,728,302 0.41% Washington University 1,688,185 0.40% GKN Aeropsace N America Inc. 1,064,644 0.25% Jost Real Estate LLC 1,064,622 0.25% The Boeing Company 1,051,546 0.25% BJC Health System 1,034,101 0.24% St. Louis University 948,931 0.22% Subtotal (10 largest) $17,837,881 4.19% Balance from other customers $407,409,902 95.81% Grand Totals $425,247,783 100.00% __________________________ Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020 46 User Charge Revenues The following table shows the amount of wastewater user charge revenues which were billed and collected by the District for the Fiscal Years ended June 30, 2012 through June 30, 2021: Collections as a Fiscal Wastewater Wastewater % of Wastewater Year Charges Billed1 Charges Collected2 Charges Billed 2012 222,425,957 217,396,623 97.74% 2013 233,882,795 233,877,875 99.99% 2014 245,555,628 241,549,548 98.37% 2015 279,555,881 275,049,684 98.39% 2016 300,803,084 299,932,808 99.71% 2017 326,663,167 322,829,334 98.83% 2018 359,628,200 351,107,233 97.63% 2019 394,518,583 386,033,225 97.85% 2020 425,147,702 419,918,978 98.77% 2021 420,781,206 417,788,153 99.29% __________________________ Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020 1Includes wastewater user charge revenues billed and accrued for the year. 2Includes wastewater user charge revenues collected for the current year and previous years billings. Outstanding Indebtedness General Obligation Indebtedness. As of the date of this Official Statement, the District has no outstanding general obligation indebtedness on either a District-wide or subdistrict basis. [Remainder of page intentionally left blank] 47 Other Outstanding Debt. The District ended Fiscal Year 2021 with approximately $1.66 billion in long-term sewer system revenue bond debt outstanding. The following table summarizes the outstanding long-term debt for the District at the end of Fiscal Years 2019, 2020, and 2021: Total Long-Term Debt Outstanding (000s) 2019 2020 2021 Prior Senior Bonds: Series 2010B $85,000 $85,000 $85,000 Series 2011B 15,945 13,725 - Series 2012A 154,040 45,620 40,320 Series 2012B 128,840 41,525 37,800 Series 2013B 113,615 42,380 38,990 Series 2015B 190,135 168,950 166,030 Series 2016C 144,535 141,695 138,740 Series 2017A 312,760 309,240 305,580 Series 2018A1 261 261 261 Series 2019B - 52,130 51,295 Series 2019C - 276,260 274,745 Series 2020B - - 118,055 Series 2021C - - 5,620 Series 2022A - - - Subordinate SRF Bonds: Series 2004B 64,590 55,730 46,625 Series 2005A 3,120 2,765 2,400 Series 2006A 20,965 18,550 16,075 Series 2006B 7,400 6,650 5,890 Series 2008B 21,765 19,795 17,790 Series 2009A 14,218 13,068 11,892 Series 2010A 5,468 5,080 4,683 Series 2010C 24,906 23,111 21,269 Series 2011A 32,241 30,449 28,611 Series 2013A 43,349 41,044 38,679 Series 2015A2 65,902 62,478 58,973 Series 2016A3 13,129 17,158 17,001 Series 2016B4 45,583 61,285 65,850 Series 2018B5 2,880 18,228 24,303 Series 2019A6 - 6,292 22,012 Series 2020A7 - - 9,983 Series 2021A8 - - 5,333 Series 2021B9 - - 7,261 Non-Bond Related Debt: Energy Loan Program 16 - - TOTALS: $1,510,664 $1,558,470 $1,667,066 _______________________________ Source: District 1 This series was issued in an original principal amount of not to exceed $47,722,204, of which $261,479.86 has been drawn and remains outstanding as of May 5, 2022. 2 This series was issued in an original principal amount of not to exceed $75,000,000, of which $75,000,000 has been drawn and $55,384,000 remains outstanding as of May 5, 2022. 3 This series was issued in an original principal amount of not to exceed $20,000,000, of which $20,000,000 has been drawn and $16,102,000 remains outstanding as of May 5, 2022. 4 This series was issued in an original principal amount of not to exceed $75,500,000, of which $75,000,000 has been drawn and $62,492,000 remains outstanding as of May 5, 2022. 48 Employee Benefits The District currently maintains three pension plans for its employees: (i) a noncontributory single employer defined benefit plan (the “Defined Benefit Plan”) providing retirement benefits as well as death and disability benefits to all full-time District employees commencing services prior to December 31, 2010, (ii) a defined contribution plan (the “Defined Contribution Plan”) and (iii) a deferred compensation plan (the “Deferred Compensation Plan”). A Pension Committee (consisting of two members of the District’s Board, two elected employee members and four members of the District’s management staff) administers the Defined Benefit Plan. The Defined Benefit Plan is exempt from the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and, as such, is not subject to ERISA’s reporting requirements. As a noncontributory plan, the District’s employees do not contribute to the Defined Benefit Plan. Ordinances establishing the Defined Benefit Plan provide for actuarially determined annual contributions, paid solely by the District, that are sufficient to pay benefits when due. Contributions of $12,771,525 and $13,062,014, excluding certain professional fees paid by the District, were made to the Defined Benefit Plan during the District’s Fiscal Year ending June 30, 2021 and 2020, respectively. These contributions were made in accordance with actuarially determined contribution requirements based on actuarial valuations performed at December 31, 2020, and 2019, respectively. For 2020, the actuarially determined contribution consists of (a) $4,902,474 normal cost plus (b) $7,719,224 amortization of the actuarial accrued assets in excess of the actuarial accrued liability and prior changes (c) multiplied by an inflation factor of 2.50%, which totals $12,725,462. For 2019, the actuarially determined contribution consists of (a) $5,238,812 normal cost plus (b) $7,001,606 amortization of the actuarial accrued assets in excess of the actuarial accrued liability and prior changes (c) multiplied by an inflation factor of 1.02%, which totals $12,493,916. In the 2020 valuation, the number of active members included in the valuation decreased from 545 to 493 and the number of retirees and beneficiaries increased from 748 to 771. The Funded Ratio for December 31, 2019, is 82.2%, down 0.4% from the period ended December 31, 2018. The District provides certain professional fees, office space, utilities, and other services to the Defined Benefit Plan at no cost. Other costs of administering the Defined Benefit Plan are financed from plan net assets. For more information regarding the District’s Defined Benefit Plan, see Note 7, Pension Plan, in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. Effective January 1, 2011, the District started the Defined Contribution Plan for all new hires. Current employees with less than 10 years of service on December 31, 2010, could voluntarily elect to transfer from the Defined Benefit Plan into the Defined Contribution Plan. The Defined Contribution Plan provides a basic contribution of 7% of employee annual earnings and provides a matching contribution of 50% of the first 4% of earnings the employee defers into the Deferred Compensation Plan. (This is a maximum matching contribution of 2% of earnings.) Employees decide upon the investment of these contributions and investment earnings from funds offered by Vanguard. Initial participation consisted of twenty-three employees who transferred balances totaling $70,869 from the Defined Benefit Plan. At December 31, 2019, the Defined Contribution Plan consisted of 540 participants with account balances just over $13 million in net position. For more information regarding the District’s Defined Contribution Plan, see Note 8, Other Retirement Plans at Defined Contribution Plan, in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. 5 This series was issued in an original principal amount of not to exceed $25,267,000, of which $25,174,403 has been drawn and $24,641,403 remains outstanding as of May 5, 2022. 6 This series was issued in an original principal amount of not to exceed $23,952,000, of which $23,952,000 has been drawn and remains outstanding as of May 5, 2022. 7 This series was issued in an original principal amount of not to exceed $22,000,000, of which $19,003,476 has been drawn and remains outstanding as of May 5, 2022. 8 This series was issued in an original principal amount of not to exceed $63,101,000, of which $20,853,350 has been drawn and remains outstanding as of May 5, 2022. 9 This series was issued in an original principal amount of not to exceed $40,201,000, of which $23,130,752 has been drawn and $22,256,752 remains outstanding as of May 5, 2022. 49 The District also offers its employees the Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. The Deferred Compensation Plan, available to all District employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until separation from service, or in special approved circumstances due to financial hardship as defined by the Deferred Compensation Plan. Plan assets are held in trust for the exclusive benefit of participants and their beneficiaries. As a result, the assets and liabilities of the Deferred Compensation Plan are not included in the District’s financial statements. For more information regarding the District’s Deferred Compensation Plan, see Note 8 in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. Other Post-Employment Benefits The District pays 80% to 91% of the monthly group health insurance premium for the individual until the retiree becomes eligible for Medicare. During Fiscal Years 2020 and 2019, expenses of $2,266,677 and $2,586,148, respectively, were recognized for post-retirement health care premiums as those premiums were paid. The District’s total OPEB liability at June 30, 2020 and 2019, respectively, were $23,164,618 and $24,164,395. It is estimated that for the Fiscal Year ending June 30, 2020, the District’s unfunded accrued liability will be approximately $23 million assuming a 2.74% return on investment. For more information regarding the District’s OPEB plans, see Note 9 in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement. Also see the section herein captioned “FINANCIAL OPERATIONS OF THE DISTRICT – Selected Financial Data of the District.” Tax Limitation Amendment – Hancock Amendment An amendment to the Missouri Constitution (the “Hancock Amendment”) limits the rate of increase and the total amount of taxes on property which may be imposed in any year, and the limit may not be exceeded without voter approval. Provisions are included in the amendment for rolling back tax rates to produce an amount of revenues equal to that of the previous year if the definition of the tax base is changed or if property is reassessed. The tax levy on the assessed valuation of new construction is exempt from this limitation. The Hancock Amendment also requires a political subdivision of the State to seek voter approval in order to increase any “tax, license or fee” over existing rates. A Missouri court has held that the District’s current wastewater user charge structure does not constitute a “tax, license or fee” for purposes of the Hancock Amendment’s voter approval requirements. Since the Series 2022B Bonds are approved by the voters, the Hancock Amendment does not prohibit an increase in the District’s wastewater user charges to pay debt service on the Series 2022B Bonds. REGULATORY REQUIREMENTS General The District is subject to the provisions of the (a) Clean Water Act, the stated objective of which is to restore and maintain the chemical, physical, and biological integrity of the nation’s waters, (b) the Missouri Clean Water Law, and (c) other laws and regulations. The regulatory requirements are administered by the EPA through DNR. The District is currently not subject to the federal Safe Drinking Water Act, as amended, 42 U.S.C. 300f et seq., which is also administered by the EPA. The Clean Water Act imposes several permit and regulatory requirements on wastewater treatment systems. Public sewage treatment plant owners and operators such as the District are required to 50 provide secondary treatment as established by federal regulation for all wastewater discharge from treatment plants into waters of the United States of America. Under the Clean Water Act, states also establish water quality standards, classifying water body uses, and pollutant control criteria to protect those uses. All sewage system discharges require National Pollutant Discharge Elimination System (“NPDES”) permits specifying the permissible pollutant levels in wastewater effluent discharged from the plants. In addition to secondary treatment requirements for publicly-owned treatment plants, all discharges from plants and combined sewer overflows (“CSO”) may be subject to additional stringent controls (which are then incorporated into NPDES permits) if such discharges are required to achieve the water quality standards established by the state pursuant to federal regulations. Under State law, the State also requires treatment plants to obtain state surface water discharge permits, which, in the discretion of EPA and DNR, may be issued jointly with the NPDES permit. Major wastewater treatment systems also must adopt and enforce pretreatment regulations for industries and other non-domestic sources discharging into sewers. Treatment plants are also subject to Clean Water Act and State regulations governing sludge use and disposal. The Clean Water Act is enforced by EPA through administrative orders and procedures. Violations may be the basis for federal lawsuits brought on EPA’s behalf by the U.S. Department of Justice or by private citizens. Regulatory Matters – Consent Decree In 2007, the Department of Justice filed suit on behalf of the EPA against the District for various alleged violations of the Clean Water Act. The District had been the subject of several investigatory actions by EPA over the prior several years. The District, EPA, DNR, represented by the Missouri Attorney General, and an environmental group allowed to intervene in the lawsuit engaged in several years of litigation. In 2011, the District and the EPA negotiated the Consent Decree (the “Consent Decree”) that resulted in settlement and dismissal of the original lawsuit. See Note 12, Commitments and Contingencies, in the District’s Notes to Financial Statements contained in Appendix A to this Official Statement for additional information regarding this litigation. The District’s Board adopted Ordinance No. 13277 at its June 29, 2011 meeting that authorized the District’s Executive Director and General Counsel to sign the Consent Decree. Under the Consent Decree, the District agreed to spend over $6 billion dollars (in 2018 dollars) over the next 23 years to implement various system improvements and programs designed to eliminate or reduce overflows from the combined and separate sewer system in order to improve water quality and protect human health and the environment. Most of the improvements enumerated in the Consent Decree were already addressed in the District’s long-term over $6 billion dollars (in 2018 dollars) CIRP. The State did not agree to sign the Consent Decree in its present form. However, all parties, including the State, accepted language in a motion filed with the U.S. District Court for the Eastern District of Missouri (the “Court”) in August 2011, which indicated that there were no issues remaining to be resolved in the proceedings. On August 4, 2011, the Consent Decree was lodged with the Court. An extended public comment period ended October 10, 2011. On April 27, 2012, the Court entered the Consent Decree, thus concluding the litigation of this lawsuit. On that same day the Court entered a Memorandum and Order which realigned the State as a defendant and reaffirmed a 2009 decision by the Eighth Circuit Court of Appeals that the State had waived its sovereign immunity. Although this litigation matter has concluded, the District is working diligently to implement the Consent Decree on schedule. On June 22, 2018, the Court approved an amendment to the Consent Decree to extend it by five years from a 23-year program to a 28-year program. This amendment to the Consent Decree allows the District to deliver an accelerated schedule of regulatory required non-Consent Decree work without 51 placing an additional financial burden on the District’s ratepayers, and states that the amount the District is required to spend in 2018 dollars pursuant to the Consent Degree is $6 billion. RISK FACTORS The following is a discussion of certain risks and other considerations that should be considered in conjunction with all other information contained in this Official Statement, including the Appendices hereto, by prospective investors in evaluating the Series 2022B Bonds. Such discussion is not, and is not intended to be, exhaustive and should not be considered as a comprehensive or exhaustive discussion of risks or other considerations which may be relevant to an investment in the Series 2022B Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such considerations. There can be no assurance that other risk factors not discussed herein will not become material in the future. Factors Affecting the District One or more of the following factors or events, or the occurrence of other unanticipated factors or events, could adversely affect the District’s operations and financial performance to an extent indeterminable at this time. Changes in Management or Policies. Changes in key management personnel or policies of the District could adversely affect the financial performance of the District. Future Economic Conditions. Increased unemployment or other adverse economic conditions or changes in the demographics of the District; an inability to control expenses in periods of inflation and difficulties in increasing charges could adversely affect the District’s financial performance. For more information on the District’s rate setting process see “MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW – Rate Commission and Rate Setting Process.” Insurance Claims. Increases in the cost of the District’s insurance coverages and the amounts paid in settlement of claims not covered by insurance could adversely affect the financial performance of the District. Organized Labor Efforts. Certain employees of the District’s Operations Department are represented by collective bargaining units. Labor disputes with these collective bargaining units could result in adverse labor actions or increased labor costs. Environmental Regulation. Sewer utilities are subject to continuing environmental regulation. Federal, state and local standards and procedures that regulate the environmental impact of water or sewer utilities are subject to change. These changes may arise from continuing legislative, regulatory and judicial action regarding such standards and procedures. Consequently, there is no assurance that facilities in operation will remain subject to the regulations currently in effect, will always be in compliance with further regulations or will always be able to obtain all required operating permits. An inability to comply with environmental standards could result in reduced operating levels and fines. Legislative, regulatory, administrative or enforcement actions involving environmental controls could also adversely affect the operation of the System. For example, if property of the District is determined to be contaminated by hazardous materials, the District could be liable for significant clean-up costs even if it were not responsible for the contamination. 52 Natural Disasters/Climate. The occurrence of natural disasters, such as tornados, earthquakes, floods or droughts, could damage the facilities of the District, interrupt services or otherwise impair operations and the ability of the District to produce revenues. Terrorist Attacks. Although potential terrorist attacks could temporarily disrupt wastewater treatment service, the District has taken and continues to take precautions to minimize this risk, but does not represent that any existing or additional safety or security measures will be adequate in the event that terrorist activities are directed at the System. Miscellaneous Factors. The sewer industry in general has experienced, or may in the future experience, problems including (a) the effects of inflation on the costs of operation of facilities, (b) increased financing requirements coupled with the increased cost and uncertain availability of capital, and (c) compliance with rapidly changing environmental, safety and licensing regulations and requirements. Summary Financial Information Certain summarized historical financial information and certain projected revenues and expenditures of the District are summarized in this Official Statement and its appendices. There can be no assurance that the financial results achieved by the District in the future will be similar to historical results or the projections contained herein. Such future results will vary from historical results, and actual variations may be material. Information as to the projected figures and the assumptions upon which they are based are contained in this Official Statement and its appendices. No assurance can be given that assumptions used in preparing projected revenues are accurate including, but not limited to, those as to water usage volume, operating and maintenance expenses, and the stability of the customer base. Significant variations in such assumptions may affect the actual operating and financial results. Therefore, the historical operating results of the District’s System contained in this Official Statement cannot be viewed as a representation that the District will be able to generate sufficient revenues in the future to make timely payment of principal of, redemption premium, if any, and interest on the Series 2022B Bonds. Certain Bankruptcy Risks The remedies available to the owners of the Series 2022B Bonds upon an event of default under the Bond Ordinance are in many respects dependent upon judicial actions that are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically the United States Bankruptcy Code, 11 U.S.C. §§ 101, et seq. the remedies provided in the Bond Ordinance may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2022B Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by general principles of equity and by bankruptcy, reorganization, insolvency or other similar laws, affecting the rights of creditors generally. Secondary Markets and Prices The Underwriters will not be obligated to repurchase any of the Series 2022B Bonds and no representation is made concerning the existence of any secondary market for the Series 2022B Bonds. No assurance can be given that any secondary market will develop following the completion of the offering of the Series 2022B Bonds, and no assurance can be given that the initial offering prices for the Series 2022B Bonds will continue for any time period. 53 Risk of Taxability of Series 2022B Bonds For information with respect to events occurring subsequent to issuance of the Series 2022B Bonds that may require that interest on such Series 2022B Bonds be included in gross income for purposes of federal income taxation, see the caption “TAX MATTERS” in this Official Statement. Risk of Audit of Series 2022B Bonds The Internal Revenue Service (the “Service”) has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations should be included in gross income for federal income tax purposes. Owners of the Series 2022B Bonds are advised that, if the Service does audit such Series 2022B Bonds, under current Service procedures, at least during the early stages of an audit, the Service will treat the District as the taxpayer, and the owners of such Series 2022B Bonds may have limited rights to participate in the audit. Public awareness of any audit could adversely affect the market value and liquidity of Series 2022B Bonds during the pendency of the audit, regardless of the ultimate outcome thereof. Limited Obligations The Series 2022B Bonds are limited obligations of the District, payable solely from the Pledged Revenues generated from the operation of the System. The Series 2022B Bonds and the interest thereon shall not constitute a general or moral obligation of the District nor a debt, indebtedness, or obligation of, or a pledge of the faith and credit of, the District, the State or any political subdivision thereof, within the meaning of any constitutional, statutory or charter provision whatsoever. The taxing power of the District, the State or any political subdivision is not pledged to the payment of the Series 2022B Bonds or the interest thereon. The District has no authority to levy any taxes to pay the Series 2022B Bonds. Loss of Premium Upon Early Redemption Purchasers of the Series 2022B Bonds at a price in excess of their principal amount should consider the fact that the Series 2022B Bonds are subject to redemption at a redemption price equal to their principal amount plus accrued interest under certain circumstances. See “THE SERIES 2022B BONDS – Redemption Provisions.” Potential Risks Relating to COVID-19 Since December 2019, a novel strain of coronavirus (which leads to the disease known as “COVID-19”), has spread throughout the world and has been characterized by the World Health Organization as a pandemic. The impact of the COVID-19 pandemic on the U.S. economy has been and is expected to continue to be broad based and to negatively impact national, state and local economies. In response to such expectations, the President of the United States on March 13, 2020, declared a “national emergency,” which, among other effects, allowed the executive branch to disburse disaster relief funds to address the COVID-19 pandemic and related economic dislocation. On March 13, 2020, the Governor of the State of Missouri signed an Executive Order declaring a state of emergency in the State of Missouri in response to COVID-19. On August 27, 2021, the Governor of the State of Missouri terminated the Executive Order and signed Executive Order 21-09, which represented a more targeted state of emergency declaration that acknowledges the continued need of Missouri’s health care system. Executive Order 21-09 expired on December 31, 2021, currently, the State of Missouri is not under any state of emergency. 54 The spread of the strain of coronavirus and resulting disease is altering the behavior of businesses and people in a manner that is having negative effects on global, state and local economies. There can be no assurances that the spread of a pandemic, including a strain of coronavirus and resulting disease known as COVID-19, will not materially impact both local and national economies and, accordingly, have a materially adverse impact on the District’s operating and financial viability. The proliferation of COVID-19 throughout the District and the surrounding region may adversely impact the amount of Pledged Revenues the District generates from the operation of the System that are pledged to pay debt service on the Series 2022B Bonds if the economic ramifications of the spread of COVID-19 have a lasting impact on the economy in and around the District. Significant instances of late payment or nonpayment could result in Pledged Revenues that are insufficient to pay debt service on the Series 2022B Bonds. Developments regarding COVID-19 continue to occur on a daily basis and the extent to which COVID-19 will impact the general operations of the District, the operation of the System and the ability of the District to generate sufficient Pledged Revenues from the operation of the System is highly uncertain and cannot be predicted. The Series 2022B Bonds do not constitute a general or moral obligation of the District and do not constitute an indebtedness of the District within the meaning of any constitutional, statutory, or charter provision, limitation or restriction, and the taxing power of the District is not pledged to the payment of the Series 2022B Bonds or the interest thereon. See the section captioned “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS”. No Debt Service Reserve Account Securing the Series 2022B Bonds The Series 2022B Bonds are Senior Uncovered Bonds and therefore are not secured by the Debt Service Reserve Account. Cybersecurity Risks The District relies on its information systems to provide security for processing, transmission and storage of confidential and other credit information. It is possible that the District’s security measures will not prevent improper or unauthorized access or disclosure of personally identifiable information resulting from cyber-attacks. Security breaches, including electronic break-ins, computer viruses, attacks by hackers and similar breaches can create disruptions or shutdowns of the District and the services it provides, or the unauthorized disclosure of confidential and other credit information. If personal or otherwise protected information is improperly accessed, tampered with or distributed, the District may incur significant costs to remediate possible injury to the affected persons, and the District may be subject to sanctions and civil penalties if it is found to be in violation of federal or state laws or regulations. Any failure to maintain proper functionality and security of information systems could interrupt the District’s operations, delay receipt of revenues, damage its reputation, subject it to liability claims or regulatory penalties and could have a material adverse effect on its operations, financial condition and results of operations. The District has cybersecurity insurance. Global Climate Change Certain scientific studies on global climate change indicate that, among other potential effects on the global ecosystem, sea levels may rise, extreme temperatures may become more common and extreme weather events may become more frequent in connection with a possible increase in global temperatures attributable to atmospheric pollution. Over the next 25 to 100 years, such extreme events and conditions may increasingly disrupt and damage critical infrastructure and property as well as regional economies and industries that depend on natural resources and favorable climate conditions. Disruptions could include more frequent and longer-lasting power outages, fuel shortages and service disruptions. As a result, residents, businesses, and governmental operations could be negatively impacted and possibly 55 displaced, reducing the number of rate payers and users of the System. In addition, local public agencies and governmental entities could be required to mitigate these possible climate change effects at a potentially material cost. LITIGATION Except as described in the “REGULATORY REQUIREMENTS – Regulatory Matters – Consent Decree” above, as of the date hereof, to the knowledge of the District there is no legal action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, public board or body for which the District has been served with process or official notice or threatened against or affecting the District or any reasonable basis therefor, wherein an unfavorable decision, ruling or finding would adversely affect the transaction contemplated by this Official Statement or the validity of the Series 2022B Bonds, the Bond Ordinance, or any agreement or instrument to which the District is a party and which is used or contemplated for use in the transactions contemplated by this Official Statement, and no member, employee or agent of the District has been served with any legal process regarding such litigation or other proceeding. TAX MATTERS The following is a summary of the material federal and State of Missouri income tax consequences of holding and disposing of the Series 2022B Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of owners subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Series 2022B Bonds as a capital asset, tax- exempt organizations, individual retirement accounts and other tax deferred accounts and foreign taxpayers) and, except for the income tax laws of the State of Missouri, does not discuss the consequences to an owner under any state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2022B Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Series 2022B Bonds. Opinion of Co-Bond Counsel In the opinion of Gilmore & Bell, P.C. and White Coleman & Associates, LLC, Co-Bond Counsel to the District, under the law existing as of the issue date of the Series 2022B Bonds: Federal and State of Missouri Tax Exemption. The interest on the Series 2022B Bonds is excludable from gross income for federal income tax purposes and is exempt from income taxation by the State of Missouri. Alternative Minimum Tax. The interest on the Series 2022B Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bank Qualification. The Series 2022B Bonds have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code. Co-Bond Counsel’s opinions are provided as of the date of the original issue of the Series 2022B Bonds, subject to the condition that the District comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Series 2022B Bonds in order that interest thereon be, or 56 continue to be, excludable from gross income for federal income tax purposes. The District has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 2022B Bonds in gross income for federal and State of Missouri income tax purposes retroactive to the date of issuance of the Series 2022B Bonds. Co-Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Series 2022B Bonds but has reviewed the discussion under the heading “TAX MATTERS.” Other Tax Consequences Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Series 2022B Bond over its stated redemption price at maturity. The issue price of a Series 2022B Bond is generally the first price at which a substantial amount of the Series 2022B Bonds of that maturity have been sold to the public. Under Section 171 of the Code, premium on tax-exempt bonds amortizes over the term of the Series 2022B Bond using constant yield principles, based on the purchaser’s yield to maturity. As premium is amortized, the owner’s basis in the Series 2022B Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Series 2022B Bond prior to its maturity. Even though the owner’s basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of bond premium. Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Series 2022B Bond, an owner of the Series 2022B Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Series 2022B Bond (other than in respect of accrued and unpaid interest) and such owner’s adjusted tax basis in the Series 2022B Bond. To the extent a Series 2022B Bond is held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Series 2022B Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on the Series 2022B Bonds and to the proceeds paid on the sale of the Series 2022B Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner’s federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Series 2022B Bonds should be aware that ownership of the Series 2022B Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits tax, life insurance companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Co-Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Series 2022B Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Series 2022B Bonds, including the possible application of state, local, foreign and other tax laws. 57 LEGAL MATTERS Certain legal matters incident to the authorization, issuance, sale and delivery of the Series 2022B Bonds are subject to the approval of Gilmore & Bell, P.C., St. Louis, Missouri, and White Coleman & Associates, LLC, St. Louis, Missouri, Co-Bond Counsel, whose approving legal opinions will be delivered with the Series 2022B Bonds in substantially the form of Appendix E hereto. Certain other legal matters will be passed on for the District by its General Counsel. Certain legal matters relating to this Official Statement will be passed upon by Armstrong Teasdale LLP, St. Louis, Missouri, as Disclosure Counsel to the District. Certain legal matters will be passed upon for the Underwriters by their co-counsel, Thompson Coburn LLP, St. Louis, Missouri, and Richard G. Hughes & Associates, LLC, St. Louis, Missouri. The various legal opinions to be delivered concurrently with the delivery of the Series 2022B Bonds express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. By rendering a legal opinion, the opinion giver does not become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of parties to such transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. RATINGS S&P Global Ratings, a Standard & Poor’s Financial Services LLC business and Moody's Investors Service, Inc. (collectively, the “Rating Agencies”) have assigned the Series 2022B Bonds the ratings of “AAA” and “Aa1,” respectively, based on each Rating Agency’s evaluation of the creditworthiness of the District. Such ratings reflect only the views of the Rating Agencies at the time such ratings are given, and the Underwriters, Co-Municipal Advisors and the District make no representation as to the appropriateness of such ratings. An explanation of the significance of such ratings may be obtained only from the Rating Agencies. The District has furnished the Rating Agencies with certain information and materials relating to the Series 2022B Bonds and the District that have not been included in this Official Statement. Generally, rating agencies base their ratings on the information and materials so furnished and on investigations, studies and assumptions by the rating agencies. There is no assurance that a particular rating will be maintained for any given period of time or that it will not be lowered or withdrawn entirely if, in the judgment of the agency originally establishing such rating, circumstances so warrant. Neither the District, nor the Co-Municipal Advisors nor the Underwriters have undertaken any responsibility to bring to the attention of the holders of the Series 2022B Bonds any proposed revision or withdrawal of a rating of the Series 2022B Bonds, or to oppose any such proposed revision or withdrawal. Any revision or withdrawal of a rating could have an adverse effect on the market price and marketability of the Series 2022B Bonds. Securities ratings are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. CONTINUING DISCLOSURE Pursuant to the Continuing Disclosure Agreement, under which the District has designated DAC as Disclosure Dissemination Agent, the District has covenanted for the benefit of the holders and beneficial owners of the Series 2022B Bonds to provide, or cause to be provided, certain financial information and operating data relating to the District to certain parties by not later than 180 days following the end of the District’s Fiscal Year (the “Annual Report”), commencing with the report for the Fiscal Year ending June 30, 2022, and to provide notices of the occurrence of certain enumerated 58 events, if material. The Annual Report and any notices of material events will be submitted by the Disclosure Dissemination Agent on behalf of the District with the Municipal Securities Rulemaking Board (“MSRB”) through its Electronic Municipal Market Access system (“EMMA”) pursuant to Rule 15c2-12. EMMA is an internet-based, online portal for free investor access to municipal bond information, including offering documents, material event notices, real-time municipal securities trade prices and education resources available at www.emma.msrb.org. Nothing contained on EMMA relating to the District or the Series 2022B Bonds is incorporated by reference in this Official Statement. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12. The specific nature of the information to be contained in the Annual Report and in the notices of material events is summarized in “DEFINITIONS AND SUMMARIES OF CERTAIN PROVISIONS OF THE BOND ORDINANCE AND THE CONTINUING DISCLOSURE AGREEMENT” in Appendix C hereto. The District has continuing disclosure obligations in connection with the Subordinate Bonds. During the previous five years, the District believes it has materially complied with its continuing disclosure undertakings with respect to the Subordinate Bonds by timely filing the required financial information and operating information with the master trustee; however, certain audited financial statements and financial and operating information provided by the District to the master trustee in connection with the Subordinate Bonds was not linked to all of the required CUSIP numbers. Such information has been subsequently linked to such CUSIP numbers. The District has entered into continuing disclosure undertakings similar to the Continuing Disclosure Agreement to be entered into in connection with the issuance of the Series 2022B Bonds, with respect to other series of Senior Bonds. During the previous five years, the District believes it has materially complied with the continuing disclosure undertakings related to the other series of Senior Bonds, except the District did not timely file notices of certain financial obligations incurred. The financial obligations at issue were the issuance of certain series of Subordinate Bonds. The Disclosure Dissemination Agent has only the duties specifically set forth in the Continuing Disclosure Agreement. The Disclosure Dissemination Agent’s obligation to deliver the information at the times and with the contents described in the Continuing Disclosure Agreement is limited to the extent that the District has provided such information to the Disclosure Dissemination Agent as required by the Continuing Disclosure Agreement. The Disclosure Dissemination Agent has no duty with respect to the content of any disclosures or notice made pursuant to the terms of the Continuing Disclosure Agreement. The Disclosure Dissemination Agent has no duty or obligation to review or verify any information in the Annual Report, the District’s audited financial statements, a Notice Event (as defined in the Continuing Disclosure Agreement), or any other information, disclosures or notices provided to it by the District and shall not be deemed to be acting in any fiduciary capacity for the District, the holders of the Series 2022B Bonds or any other party. The Disclosure Dissemination Agent has no responsibility for the District’s failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to determine, or liability for failing to determine, whether the District has complied with the Continuing Disclosure Agreement. The Disclosure Dissemination Agent may conclusively rely upon certifications of the District at all times. UNDERWRITING The Series 2022B Bonds are being purchased for reoffering by the Underwriters, pursuant to a purchase contract between the District and BofA Securities, Inc., as representative of the Underwriters (the “Purchase Contract”). Pursuant to the Purchase Contract, the Series 2022B Bonds will be purchased at the aggregate purchase price of $122,395,273.27, which amount is equal to the principal 59 amount of the Series 2022B Bonds of $109,070,000.00, plus original issue premium of $13,734,167.15, less the underwriters’ discount of $408,893.88. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their respective responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. The Underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, principal investment, hedging, financing and brokerage activities. Certain of the Underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various investment banking services for the District, for which they received or will receive customary fees and expenses. In the ordinary course of their various business activities, the Underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities, which may include credit default swaps) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve securities and instruments of the District. The Underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect to such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments. BofA Securities, Inc., an underwriter of the Series 2022B Bonds, has entered into a distribution agreement with its affiliate Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”). As part of this arrangement, BofA Securities, Inc. may distribute securities to MLPF&S, which may in turn distribute such securities to investors through the financial advisor network of MLPF&S. As part of this arrangement, BofA Securities, Inc. may compensate MLPF&S as a dealer for their selling efforts with respect to the Series 2022B Bonds. Wells Fargo Corporate & Investment Banking (which may be referred to elsewhere as “CIB,” “Wells Fargo Securities” or “WFS”) is the trade name used for the corporate banking, capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Association (“WFBNA”), a member of the National Futures Association, which conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, N.A. Municipal Finance Group, a separately identifiable department of WFBNA, registered with the U.S. Securities and Exchange Commission as a municipal securities dealer pursuant to Section 15B(a) of the Securities Exchange Act of 1934, as amended. WFBNA, acting through its Municipal Finance Group, one of the underwriters of the Series 2022B Bonds, has entered into an agreement (the "WFA Distribution Agreement") with its affiliate, Wells Fargo Clearing Services, LLC (which uses the trade name “Wells Fargo Advisors”) ("WFA"), for the distribution of certain municipal securities offerings, including the Series 2022B Bonds. Pursuant to the WFA Distribution Agreement, WFBNA will share a portion of its underwriting or remarketing agent compensation, as applicable, with respect to the Series 2022B Bonds with WFA. WFBNA has also entered into an agreement (the “WFSLLC Distribution Agreement”) with its affiliate Wells Fargo 60 Securities, LLC (“WFSLLC”), for the distribution of municipal securities offerings, including the Series 2022B Bonds. Pursuant to the WFSLLC Distribution Agreement, WFBNA pays a portion of WFSLLC’s expenses based on its municipal securities transactions. WFBNA, WFSLLC, and WFA are each wholly-owned subsidiaries of Wells Fargo & Company. The Underwriters may offer and sell the Series 2022B Bonds to certain dealers (including dealers depositing the Series 2022B Bonds into investment trusts) and others at prices lower than the public offering price stated on the inside cover page hereof. The initial public offering price may be changed from time to time by the Underwriters. CERTAIN RELATIONSHIPS Armstrong Teasdale LLP, Thompson Coburn LLP, and White Coleman & Associates, LLC each represent the District in certain matters unrelated to the issuance of the Series 2022B Bonds. FINANCIAL FEASIBILITY CONSULTANT The District has retained Raftelis Financial Consultants, Inc., to serve as the Financial Feasibility Consultant to the District in connection with the issuance of the Series 2022B Bonds. See Appendix D – “Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B”. CO-MUNICIPAL ADVISORS PFM Financial Advisors LLC, Cleveland, Ohio, and Independent Public Advisors, LLC, Kansas City, Missouri, have served as Co-Municipal Advisors to the District in connection with the Series 2022B Bonds, relative to a plan of financing and assisting the District in drafting certain portions of this Official Statement for the sale of the Series 2022B Bonds. The Co-Municipal Advisors have participated in the compilation and editing of this Official Statement. The Co-Municipal Advisors have not, however, independently verified the factual information contained in this Official Statement nor have they conducted an investigation of the affairs of the District for the purpose of determining the accuracy or completeness of any of the information contained herein. The Co-Municipal Advisors have relied on the diligence and accuracy of the District which has certified that this Official Statement contains no material misstatement or omission of information. PFM Financial Advisors, LLC is an independent advisory firm and is not engaged in the business of underwriting, trading, or distributing municipal securities or other public securities. INDEPENDENT AUDITORS The Independent Auditors Report, Management’s Discussion and Analysis and Basic Financial Statements of the District for the Fiscal Years ended June 30, 2021 and 2020 included in Appendix A of this Official Statement has been audited by CliftonLarsonAllen LLP. MISCELLANEOUS The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and reference is made to all such documents for full and complete statements of all matters of fact relating to the Series 2022B Bonds, the security for the payment of the Series 2022B Bonds and the rights of the owners thereof. During the period of the offering, copies of drafts of such documents may be examined by requesting same from the Co-Municipal Advisors; following delivery of the Series 2022B Bonds, copies of such documents may be examined at 61 the corporate trust office of the Paying Agent in St. Louis, Missouri. The information contained in this Official Statement has been compiled from official and other sources deemed to be reliable, and while not guaranteed as to completeness or accuracy, is believed to be correct as of this date. It is anticipated that CUSIP identification numbers will be printed on the Series 2022B Bonds, but neither the failure to print such numbers on any Series 2022B Bonds nor any error in printing of such numbers will constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for any Series 2022B Bonds. The attached appendices are integral parts of this Official Statement and must be read together with all of the foregoing statements. The closing documents will include a certificate by the proper official or officer of the District that, to the best of his or her knowledge and belief at the time of the acceptance of the delivery of the Series 2022B Bonds, this Official Statement and any information furnished by the District supplementary thereto did not and do not contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made in light of the circumstances under which they were made, not misleading in any material respect. Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not expressly so stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the information presented herein since the date hereof. This Official Statement is not to be construed as a contract or agreement between the District, the Paying Agent, or the Underwriters and the purchasers or Owners of any Series 2022B Bonds. [Remainder of page intentionally left blank] 62 This Official Statement has been authorized and approved by the District. For purposes of compliance with Rule 15c2-12, this Official Statement constitutes an official statement of the District that has been deemed final by the District as of its date except for the omission of no more than the information permitted by Rule 15c2-12. This Official Statement has been duly executed and delivered on its behalf by the officials or officers signing below. By: /s/ Brian L. Hoelscher, P.E. Executive Director By: /s/ Tim R. Snoke Secretary-Treasurer APPENDIX A Independent Auditors’ Report, Management’s Discussion and Analysis and Basic Financial Statements of The Metropolitan St. Louis Sewer District for the Fiscal Years ended June 30, 2021 and 2020 [ THIS PAGE INTENTIONALLY LEFT BLANK ] D r Creek Tht rie9 wastewater +tor orate ANNUAL COMIPREHENSWL FINANCIAL REPORT FISCAL YEARS ENDEDJUNE 30, 2021 AND 2020 THE METROPOLITAN ST. LOUIS SEWER DISTRICT ST. LOUIS, MISSOURI THE METROPOLITAN T. LOUTS SEWER DISTRICT ST. LOUIS, MISSOURI ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEARS ENDED JUNE 30, 2021 AND 2020 Report Preplired And Submitted. By The. Department of Finance Marion M. Gee Director Of Finance Contents Part I tntroductor3' Section: LetterofTrans Tnr t ...,,,.,....,.............,...,...,...,...,.,...,..,.....,...... ...,.......,........,...,............,..,r,.......,..i Organization n CIrtirrt 141/11,11111. .11. I ..1.„J 1 _..,..r.,.,..anl a.x Certificate Of Achievement For Excellence a In Financial Reporting ....... .... ...........,..... _::..:sii Part Il - Financial Sections Independent }auditors' R.ep frt ..,: ,...:.. :.. ..: .::...:_ :....._.. _..,_....1 Management's Discussion And Analysis _.:... __.... • .. ... .....:.......... ..... .... :..._;1 Basic Financial Statements Statements Of N t. Position:,,.:;..:,. .: 11_.11,..... . 11.11..,...,..,.,..,,_ :.:_,1.,:..,...,.1J1. Statements Of Revenues% Expenses, And Chance in Net Position. L...." 20 Statements Of Cash Flows 21 Statements of Fiduciary Net Position..._.._ _._,,__..__..__..___.._..____..__.._..__.._....._.._...:__.___••-•- -..21 Statements of Change in Fiduciar., Net Position 24 Notes To Financial Statements_..: ............... .:__........ _:._ _.._.....:v..LF Required Supplementary Information Schedule Of Changes In Net Pension Liability And 'Related Ratios _______-______110 Schedule C}f Employer Contributions - Employees' Pension Plan .._...._.._._..._.:---- --••_•..-_111 Schedule Of Changes :in "Total OH L3 Liability __•-__-•__•-________________________•__1..1.__1.__1.,---•--1.1.1..1..._ 11 Pan 111- S'tatir:ticalSection: Net 130aition I3 f',mmpon+, t 113 Changes In NetPosition .: : 114 Operating Revenues By Source _ 1.1.1..1. :... ................, 111.1. 1.;1.11...._ ..._......_..._.115 Operating L per s _._...,._...___.._..:_..._ 116 Non -Operating IZevenues And Repense% 117 E. 3,41. -r Charge Kates .__,_,-..._..__..._-_ 1.1..1.1.__..__._---.._..,,,_. _ 118 Li r Charge Raven u __..._..___.__....._..__..._...__.._...__..__..__..,...,__..___.._..___..__..,,..__..__...___.._..---1.1.__1.1.._..__ 119 Sower J rscCharges ( mp t te-• y tr t) .. _ ,,.,,, ,..,,. r. ,,,r,.,_r.,,r,.,...- . ,..,,..,,.,,,r 120 Nu Ares C:Ft t'u-ar.;;tt7em Isjepe 121 2 'Teri Largest t{��,t+�r�er++„ , 111.1. . .1111 _, 111. 1. ., 1.1.1.1. .., .1111 , ., , .1111,., , , 1.111.,, ,_ .,,.1s.,2 {4Iko u(Qutatrrnding Debt F1'a'Type, ..__,_.__.._... . , r. .,,,r, , Comprytation Of Overlapping Debt Fledged Revenue Coverage , r. 123 124 rreurrulre.SE,11,,P,VSIFIIMIGAM.P../1,1.115,11•A 125 G Ottr()paphitr And Economic Statistics.,...,,..,, r.rrr,,r . ,...,....,.,,,..,,... Primined. Employers rs {fit_ Louis tilletropniitan Amoy,. ..... .,.,.,.,.,,P,,,.1. .... ,.....r.,.r.,_ 1.27 Averagr Flow ,r.,,r.,,,,,,rr,.-rY,arrieer°1,Mr.rrns,,,.reN+rni+,.rMeenny,•,Y s,sarefnrrl„rr.. r.,nrl. ,. er,,,,,,,ru tI„ nn r. rr ns -- 1W. Dtp4.1ratinit And Capital ...,.. ,.....,.,...,- Introductory Section 0C1 a ViS$o11 Statement Quaiity a r&v Mission Statement To protect the public's health, safety, and water environment by responsibly providing wastewater rend AbrinwEiter management Values Intggrity Ti,rAnnivelek Fxcclkeiiet arid Innovation i1h L}i tri�7 Employem Customer Satisfaction Affluoora, Fimon. Piai!r e lairiewtenOT rrrw errikraw frrlr viernent of p .yraraieztie birdsetcpi'kr . The Mission s!Wrcfratati LAO the nistrirl oru'il essern'ara' 44rlivoir, ihr N' 3narr Starr bra orr pillowor deal , ev& r, a A'M' .1161110.40lln'f'ullVrp Ilk' U1111111.)111 prTarc pkr*Ail a arwratia' Aveoar action); Metropolitan St, Louts Sewer District 23.50 Mamma 6!r e1 Sr.. Ltw,lis, MO 63103-255 314-768-6200 *View. msdprOjeaciear.Org October 21.2021. The Board of Trustees The Metropolitan St. Louis Sewer District The Annual Comprehensive Financial. Report ("ACFR") of The Metropolitan St, Louis Sewer District "MSD" or the -District") for Ole f k,'cal year ("Fr) ended June i.30!. 2021 is submitted herewith. The District's Finance Department prepared this report. The District is responsible for the accuracy of the data and the: compleienese and fairness of the pre en#-.ation of the financial statements end other information presentedherein. We believe the presentation is Accurate in all material respects and includes all disclosures necessary to enable the .reader- to gain a reasonable unciereta.nding of the Dietr et}e financial activities. In the ACFR, the District's financial activities are measured on a single enterprise fund bash; where all funde of the District sa l K L eub-dietriets are consolidated. The District's ACFR includes an Introductory Section, a Fin :Real Section, and a t ttistieai Section. The Introductory motion includes this transmittal letter. an. organization chart as of June 30, 2021 which lists the District's Board of Trustees, Rate C rmiseicFn Chair, members Of the Civil Service Commie ion, and management stair and the Government Finance Officers Association's Certificate of Achievement For Excellence in Financial Report -big presented to the District for its Annual Comprehensive Firnaricial Report for the fiscal year ended June 30. 2020. The Financial Vial Section includes the independent auditors' report, management's discussion and analysis., the Distri is basic firiencial statements and required supplementary informati-on. The Stetistical Section includes financial, economic, and demographic information, generally presented on a multi -year ba ets. 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 riiet the established criteria for inclusion in the reporting entity. Separate frern the District's enterprise financial statements, the District's fiduciary component unit's financial statements for The Metrupolit n St. Louis Sewer Dietriet Employees' Pension I'I rrn are also included in the ACFR. The Board of Trustees The Metropolitan St. Louis Sewer District l"r arii Lion :' lSD 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 M 1}"s creation, the City if St. Louis, various municipalities, and private sewer companies provided suer setvice that primarily included only collecting and transporting sewage from small geographic areas to nearby rivers and streams with little or no treatment_ Most 6r municipalities onir private sewer companies serving the area did not have the jurisdictional authority or financial resources needed to eliminate health hasarda from untreated sewage - 'hen i I ya4 District began operation, it took over the publicly owned wastewater arni stornosso sr drainage facilities within its jurisdiction and began the construction of an e tt,'t 3v,, :-;yotern m of collector and interceptor sewers and t.r.'eatrnerat facilities. In 1977. voters approved the District's annexation of a 270 square mile area of the lower Missouri River and lower Merarnec River- watersheds, The District. pureh r sell the Fee Fee Trunk Sewer Company and the Missouri I3ottoms Sewer Company in 1,978 SD has since acquired other investor -owned or municipally operated systems. The District's service area now escompasses 520 a3qua9 a miles including all 66 square miles of the City of St. Louis and 454 square miles of St. Louis County. The current. pop IA i101. :Al "ry 4:1 by the District i approximately 1.3 mil lien n prvAE.Intirtg appnmiIn; 11 !Ay W' ,(100 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 MS.l Man"), approved by voters in 1954 and amended in 2000.2012 and 2021, established the District. The Plan describes the District as °'a body c ,rporat , 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 t.. Louis. Thee Plan established the governing body of the District as a six -member Board of Trusteee (-Board") with three members appointed by the Mayor of St. Louis sad three members appointed by the St. Louis County Executive. Each Trustee shall be appointed fora term of four years, NoTrustee shall serve more than two full consecutive terms plus any portion of an unexpired term: provided, however, that each Trustee shall serve tin til 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 gam, political party. 97 The Board. of Trustees The Metropolitan St_ Louis Sewer District Unlike a corpora hoard of directors that is responsible solelv to the stockholders who choose to f--, -OW aairpiorrltia ra, MSD's Board members are trustees ofpublic property and public funds. 11w'.• are responsible to all citizens within the District.. According to the Plan, the Board en cts. District ordinances., determines policies, and appoints the Executive Director, tor, theSecretary-Treasurer, and the Internal Auditor. The Executive Director appoints all other District officials, Among its duties, the Board makes all appropriErtions. approves contracts for improvements and engages an accounting firm. to perform the annual independent audit of the District The Plan prescribes cribes other duties of the Board a aril grants numerous broad powers, su.tbject. 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 nual 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 bya Civil Service Commission; ▪ Pro vrides how the original boundaries of the District may be extended to include any area in St. Larli: County; and i Requires MSD to approve alt plans and designs for proposed construction, alteration. or reconstruction of.Sewer or drainage facilities within the District's boundaries_ The District is alo governed by the Missouri State Constitution a.rad v, rious federal and state laws that, among other requirements, mandate the following: * MSD must t hold permits far all sanitary a...SCh i rg4, . 'rhea* permits require a minimum of secondary treatment; ■ MST} must provide walitUWater irreatr it nt its an area -wide manner to qualify for federal and state grants; ■ \i I) mow, operate, maintain, and replace facilities to provide proper ti st' water treatmentor he subject to penalties and fifes; and • NISI) must set user charge rates in coospliant* with the Federal Clean W►' `or<'r Act. These rates must be submitted to the Missouri Department of Nat end Res urces to receive future construction grans and to avoid the !xis , of refunding past grants. During Nivel 2021 the primary tiou.ree of funding for the operation and maintenance of MSD's wastewater system was a user charge averaging lf674.31 per year or $56,20 per month for a single.faaniily residence_ The District's charges for residential wastewater ii i The Board . of Trustees The Metropolitan St_ Louis Sewer District service are tied to the oin uaaat of measured water usage during a winter quarter. For residential pr aperti .-. without. water r meters. the charges are bused on housing attributes. (such as the number of rooms, baths. and toilets) that correlate to waxter usage. That methodology is the same billing methodology used by the City of t_ Louie; Water- Division for their non -metered properties, lvluIti-family residential and ii in -residential rates are proportionate to the single•fami.ly charge and are based on watuT 45onsur pti:on and the strength of the discharge, During fiscal year 2021, District personnelcontinued to closely monitor the impact of CO ED•19 on our revenue streams, particularly volarrne•hased wastewater charges related ti :d i-aasWrrwr4., i.r#d made the needed �;d a,t tars nt such as reducing discretionary spending to ensure that District expenditures were supported by the reduced revenues. Similar efforts or-ts will accur again in fiscal year 022_ During fiscal 2021 the 1. istrictas stormwater system was :Funded through property taxes of I,t per one hundred dollars assessed ,valuation for stormwater regulatory activities and 9,00 per one hundred dollars ,:i:s e -rte. vHIu; then for- operation6 and maintenanCe or the District's storniwater utility. The District also performs limited capital improvements with the revenues. generated by the 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 fart fee billing of 2,10. per month for rieaidential narin nwricial properties and 180 per month per unit for rriulti- unit properties. On April 5a 2 ltaa over 62 of voters in MSD's service area approved. Proposition S which placed all MSI) custoiners 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 mist of constructing sewage treatment and drainage facilities i nd 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 bondsto finance the cast of impr wements and extensions to the sewer system. The District also rraay issue, on behalf of each of its. subdistrict,, general obligation bonds, revenue bonds, or special tasr snient bonds_ Majorinitiatives 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 •„ a during moderate to heavy rainstorms, These newer overflow pointy :al s ryht.r %Ayes when too much rainwater enters the sewer system, and without them. our Cum rrou ray could experience thousand., of basement backups and/or extensive stet -apt iv The Board of Trustees The Metropolitan St. Louis Sewer District flooding. (Even with these overflow points. basement backups can easily number in the dozens or hundreds, during particularly heavy mine). Depending on where sewer overflows are located within MSD's system, they are ci sified as combined sewer overflows or conetnieted separate &ewer overflows_ Many of these overflows area legacy of the war our wastewater systems were first built. Though most overflows predate the District's creation in 1954+ they are still. M I°S responsibility and efforts to address the problem trust Continue, Sewer overflows have been * significant foe .e of MSD's work for many years. From 199 to 2012, MSD spent approximately $2.7 billion to eliminate over 380 overflows. Today, our ' irk to address sewer overflows and improve water quality continues through a Consent, Decree that storms from a lawsuit filed against MSD by the State of Missouri and these United States Environrmental Protection Agency ( EPA") in June 2007. The State of Missouri farad the EPA wQr 1 later puled in the la r6a dt by the Missouri Coalition for the En v irorrnaent. After lengthy mediation, the EPA announced a settlement agreement in August 2011. On April 27, 2012, the Linked States Distr et Court for The Eastern District of Missouri entered a Corewnt Decree. thus concluding the litigation. The Consent 1>ecree calls for more than 6 billion in upgrades to the existing wastewater sewer system (in 2018 dollars). Also known as MSD Project Clem, this work was originally echeduled 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. Louisaa.ns — and our environment — for generations to come. rb Ipara a 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 ease. received from the State of Mie ouri ran Angela 13, 201g. The motivation behind the amendment is regulatory changes that compel MSD to accelerate certain proj ts thatdo not fall within the seope of the Consent De sk _ The time extension will allow MSD t� address new regulatory requirements in a fista:lly responsible way, while better prnojeeting and controlling needed rate increases. MSD submits rate, proposals to an independent Rate Commission. The Rate Commission was 4s14t:ti ]shed in 2000 through voter approved amendments to SD'e Charter. The commission is composed of 15 member organizations representing a broad cross-section of MSD customers and is meant to provide they public with a formal role in [ sD's rate setting process. On April 6, 2021. voters in St. Louift City and St, Louis County overwhelmingly approved Proposition Y-81.6% — to fund MSD's four•yeadre $1.58. billion capital improvement prcagr#teat to meet regulatory and wygeem improvement needs . By approving "reposition V. voters are allowing NISEI to borrow fler100 million in bonds to design and build nearly 300 V The Board . of Trustees The Metropolitan St. Louis Sewer District projects over the next three years to iinpro c the wastewater system by eliminating overflows, , reduee basement hrick a pa, re.pair and rehabilitate !.he system, make upgrades at the Bissell Petrie and Lemay Wastewater Treatment. Plants, and retire the Fenton Wastewater Treatment Plant. Wastewater gates will increase 3.4% in FY 2022_ 3.5'!. .6 FY 2023, and 3,7% in 10Y 2024. Combined with iSimilar' lend etectione held in 2004, 2008, 2012 and 2016, voters residing within SD's service area have authorized a total issuance of $3.12 billion in wastewater revenue ey bonds, $ or June .30, 2021, MST) has i :att iJ $2.27 Nihon i of the total authorization. Consilstent with past financing strategies, $ D anticipates funding future Consent Decree and other work related Ito the wastewater r collection and treatment, system through a combination of rate increases eas and voter approved bond issuatioes. As the pandemic continaee, our vigilance and commitment to our employees andour community his helped to curb the spread of COVED -19. We continued weekly employee corn r[mu n caai Lone, with adds tioraal. upd ru s a need.ecl. Reduced, density or truploy'ee8 in t Es.e building continued. The District added additional sanitizer stations arid high -touch surfaces remain covered with Nano -Septic coverings. Face-to-face internal meetings are kept to a minimum, and 5ociai distancing and masks are required throughout all of MEl> facilities, according to local laws. Inperson community outreachwas no longer possible, so MSD shifted to virtual spaces co continue earnnwnieatian with a �t-akeholder-s% Project meetings and outreach to municipal partners and contractors are now all done virtually, Pans to remain virtual will continue until it is once again safe to return to m -person meetings. Operations The Executive Director and his staff administer the operation and maintenance of the Diatrict's collection end treatment systems. The District's wastewater, storm, era ter, 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 }ears 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 stornmwater drainage range from cleaning and maintaining street inlets to operating and maintaining the floodwall pump stations along the Mississippi River. MSI3 currently operates seven wastewater treatment facilities.. These facilities treated tan, a \rerage flow of 300,6 million gallons per day C' l al in fiscal 2021 compared to 3675 MGD in fiscal 2020. Flows were lower in fiscal year 2021 due to fewer rain events than occurred in fiscal 2020, The design capacity and average !low, by watershed, in MD D] was as follows in :fiscal 2021: The Ord. of Trustees The Metropolitan St. Louis Sewer District MAJOR WATERSHED LEVEL OF TREATMENT NUMBER OF FACILITIES_ DESIGN CAPACITY (MGD) . .._. AVERAGE FLOW FISCAL 2021 GD1_ '41 i gRisaippi River Smondary TWO ,172.0CP 222.00 lis auuri River Secondary Two 78.00 .50. P t Meramee River Secondary Three 42.75 26.00 , Total Seven 392.75 R00.80 In addition to construction n initiated by the Dlatrict to protect the. public's health. and property from raw sewage and flooding, the District also provides various engineering. related design review a.nd inspection se.rvices for the ccanatrueti an of wastewater .and stormwater sewem by individuals, businesses, and municipalities in the community. ii. ' nns1it_iQnaki T ' 1,ou $ Metro1 o1 c As a rule_ the llistarict's major revenue :sources do not fluctuate with the local and national economy as much at local governmentrr that depend on sales or ire me taxes for this major sources of revenue. The combined unemployment rate for the City of St. Louis and St, Louie; County was 5.8 percent in June 2021 and lower than the national unemployment rate of 5.9 percent for the same time peed. The June 2021 unemployment rate of 5.8 percent is lower than the June 2020 rate of 9.6 percent due to the diminishing impact of the O ID -19 pandemic. MSD has its own internal barometers for measuring economic development within the District., Thee are listed below for fiscal 2021 and 2220 2021 2020 Sewer Plan R v*ww: Number of Plans Approved ed .52 .5 4435 Number of Miles of Sew srs 14 41 Number of Permits Issued d ,130 2,277 Number of Miles of Sewers 21 4i#i arliargs�- Number of Connection Permits !batted 1M21 L742 Connection Fee Revenue (in millions) S1.6 $0.9 Value of Sewers Dt.4.1imeted t -o MSD by I)eveloricr» (ire m,illat�rt 1 512.9 SC.5 Over the years, the St. Louis economy has undergone a transformation from reliance on traditional manufacturing industries to those irld.ustrieki bitted on advanced teeh.nnloRy and services. i . `he St. Louis area is a center for health care., biotechnology, banking, finance, transportation. tourism, and education and has a strong and diverse +rr The Ord. of Trustees The Metropolitan St. Louis Sewer District manufacturing economy. The area has anabundance of energy, water, and sewerage facilities.; and can sustain fu 4 lJ rie economic growth. Eiatuatiallaramati.rn Proprietary Operations. The current financial condition of M D remains stable. The District relied a net operating income of $136,7 million in Reel 2021 compared to a net operating income of $141.2 million the prior year. The decrease in net operating income was driven by a decline in other income of $6.7 million. Other income to FT 2020 included $6,6 million received as a result of a lawsuit. settlement.. Operating expenses decreased .a'3 million due primarily to a $10.9 million decrease in generel and administrative expenses which COnsisted of a $12.3 million decline i.n Governmental Accounting Standards Bard Statement No. &d related pension expense and a reduction of $2.4 million in Ii iE; ili jai o-Lrid OkiTri eXFat'rieekk; ofkaet by a $3-8 rniali t incJreax. e i . t her° administrative expenses such asbenefits and compensation and property insurance. A more set -depth anal sis of the Di itriet'e financial position and the magnitude ofth:capital improvement and replacement program ("CIRI ' is, provided in the Management's Discussion and Analysis section that appears later in this report. Buder't•ary Control The District's Plan requires MSD to submit a proposed budget to the Bad hy, March 15th each year. After Board review, a final budget is approved in June, The District's Men alee requires [) to maintain budgetary controls arid 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 a.ppropriated budget includes activities of the District's operating and debt service funds. The Board adopts ordinances to appropriate funds for capitalimprovement expenditures at the time of the contract award and a •cept :trc b 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 cam 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 genere lly aecepted accounting principles for Enterprise Funds. Adjuetr ents are evade to the accounting records, where necessary, to reflect the full accrual method of accounting. Under the full accrual method of accounting, revenue; arc recognized when earned and expenses ere recorded as liabilities when incurred, Encumbrances and unearned capital and operating grants are eliminated under the full accrual method of accounting. These amounts are disclofted as commitments in the notes rhI rin,iraciarl statements, The Board . of Trustees The Metropolitan St. Louis Sever District Cash Management, .l.. In compliance with its Plan, the District invests temporarily idle funds in cash, cash Fqui •rrlerats and investments tments sub ra i collateralized certificates tes of dept it., 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 itrl insurance coverage for various risks, while self•in.sc:aering for other risks and liabilities at levels customary for similar enterprises._ The District maintains replacement cost property and casualty ins ua.rice with a policy limit of $1.0 billion on certain facilities and. equipment that have an estimated replacement cost of $936 million. The District assumes the risk of loss (including payment of water backup claims to its customers) on most of its underground pumping facilities and collection system. MSD is one of the few sewer districts in the country ]crown to provide $.eater backup c=lam overage tea T ararrrrr'aare exposure to loss, the District inspects its facilities regularly airntt perftrms preventative maintenance on them, MSD maintains automobile, general liability and excess liability insurance. The District is self -insured for workers` compensation and funds those t through annual appropriations from the District's general insurance fund. The District maintains reinsurance for workers' ec mixli ,;tien liabilities in excess of specified limits up to the statutory limit. Risk control activities include using a thiird•party claims administrator, maintaining a computerized claim tracking system, and annually reevaluating workers" compensation cost.. The DDistrictalso has programs designed to promote safety in the workplace and employee wellrncss. The District provides group medical coverage for its Prrt4aloyees and offer.; 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 $1-75,000 per year and for total animal claims greater than 11:5 percent of the annual daims 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 visions care progrnm for employees, Effective July 1. 2O13.:rpouaes were eligible to use the benefits; effective Lily 1, 201.6, dependent children up to age 26 were eligible to use the benefits: however, ever, tile amount could not exceed the maximum amount of $AX. The District reevaluates insurance coverage and providers annually by reevaluating medical insurance claims and health benefit c! _ For most construction projects, insurance is obtained by the individual contractor and included in the contract price. ix. The Board of Trustees The Metropolitan St. Louis Sewer District In .'n'a1 (2Qptrrals. District Management: is responsible for designing, establis'hixig, and maintaining an internal control system. m. that protects District assets frurn logs, theft, or misuse and ensures that adequate accounting data is compiled to prepare financial statements in conformity with Urritod States genera.1iy accepted accounting principles_ .tnternaai control systems are designed to provide reesonable, but not absolute,assurance that these objectives arc met The concept of reasonable assurance recognizes that the cost of a control should not exc the benefits likely to he derived and that the evaluation of costs and benefits requires estimates and judgments by management. The District's internal control system ire 6ktbject to. periodic evaluation by Managetnerit, the Board and the District's independent accountants. Other Information. Audit Requirements_ The District's Plan req u H ves an annual audit by independent certified public. accountants. The District's ACFR includes a report on the District's financial arrcial statements by the amounting firma f CliftonLarsoriAllen Besides meeting the require.ments set forth in the Plan. the annual audit is also cl F4igra ti to meet the requirements of the 2013 Uniform Administrative Requirements. Cost Principles, Find Audit Requirements for Federal Awards (-UniformGuidance') that was issued by the Office of 'Management and Budget i" OM ). A Single Audit Report will be issued for the year ended June 30, 2021. The financial statements of The Metropolitan St. Luis Sewer District Employees' s' Pension Plan, The Metropolitan St. Louis Sewer District Deferred Compensation Plan and Trust and The Metropolitan St. Louis Sewer District fun d Contribution Plan are also audited annually. These audit reports were issued for the periods ending [ cena.ber 31. 2020 and 2019 and are available to interested parties upon request. Awards. The Government Finance Officers Association of the United States and Canada (CFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to MSD for its ACFR for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award that recognizes conformance with the higheststandards for preparation of state and kcal governirrwrit financial reportH, To be awarded the Certificate of Achievement, a government unit must publish an easily readable and 'efficiently organized AC -FR, the corttents 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 wear only.. The District has received a rtifrc°a to of A.chiewernent for the last thirty-three consecutive years_ We believe the current .ACFR continues to conform to the GFOKS high et: andards. ta. reileeted in the Certifieaes of Achievement program requirements, and r submitting it againthis year for consideration. The District also received the GFOA's M The Board. of Trustees The Metropolitan St. Louis Sewer District Distinguished Budget Presentation award for its fiscal 2021 annual budget, The District hai3 meived this award for thirty-four consecutive years, We believe the fiscal year 2022 budget presentation continues to meet. the .GFOA's high standards and have submitted it for consideration, n, The District also received the GFOA' ; Award fci- Outstanding Ach evenient in Popular Manual Financial Reporting ("MFR.). for its fiscal year 2020 pAFE. We have received this award ror every year since the publication of our first PAFR for FY 2012 and intend to stab snit the FY 2021 PAFR for consideration. Marion M. Glee Director of Fima ice xi ORGANTZATION (As of June 30,' u21j BOARD OF TRUSTEES Michw l EvanEvatia. Chair Army Fehr, Vico Chair. i irhnrt:l Wikon; (rip Nboorei in 'iris m K. Wirtrein; Brian Vemhhy OFFICE. OF INTERNAL AUDITOR OFFICE OF ...SECRETARY TREASURER Tim R. rkukr .b. ttiT.L'Idi r,„:fir4'rl`,ti r69r RATE 0014041SS1ON' I,c rd Twinies. Owe CIVIL SERVICE COMMIS ON RAN. Michael K &ow 1ary^l4-n;n Sinai Miehnrl Harvey EXECUTIVE DIRFL'TOR Brian l.. IirtiORchoriCEO Rich LInvulreTtli Direttor INFORMATION' TECIINOLOUN Jonathon r S1t i i�F Divergof OFFICE OF 111q1111q1AN RESOURCES p,in:1 (w s OFFICE 0l` GENERAL COI] KEI, .." SIASAII 011, Mporib Genoal Couria l r FINANCE Stitriudi M. Cev Director OPERATIONS Prot Berth'aild Dint tor GD Government Finance Officers Association Certificate f Achievement For Excellence In Financial Reporting Presented to Metropolitan St. Louis Sewer District Missouri For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30. 2020 Executive .Dir tsar/C k;O xi I Financial Section METROPOLITAN ST. LOUIS SEWER DISTRICT SERVICE AREAS CE.ftanIars!r AIlen LLP' CiAcar triert.€am INDEPENDENT AUDITORS' REPORT Board of Trustees The Metropolitan St. Lochs. Sewer District St Louis, fwIlissouri Report on the Financial Statements We have audited the accompanying crying financial statements of the business -type activities and the aggregate remaining fund information of The Metropolitan SI Lovls Sewer District (the pis.lra 1), as of and for the years ended June 30, 2021 and 2 020, and the related notes to the financial statements, which c 1Iectrwely comprise the District's financial stalemerrta as listed in the table Of contents Management's Responsibifity for the FfrranCie Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accoantirg principles generally accepted in the United States of America® this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of liriarlcial ateternenla that are free ftorri Material r issteternerl, whether due to fraud or error'_ Auditors' R+esporasibiUry Our responsibility Is to ei press opinions on these financial. statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable le to financial audits contained in Government Auditing Standards, ISSIJOCI by the Comptroller General of true United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and discivsures in the financial staterrents. The pr educes selected depend on the auditors' iudgment, Including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error_ In making arose risk, assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the finarocial statements in order to design audit procedures that area appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control, Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and t e reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we. have obtained is sufficient and appropriate to provide a basis for owrr audit opikrions. Opinions In our o►.pinion, the financial stater,{ r,is mferreri to aboVe present fairly, in, alt material resets, the financial position of the business -typo .activities and the aggregate remaining fund information of the District as of June al, 2021 and 2020, and the respective changes in its financial position and, where applicable, its cash flows for the years then ended In accordance with accounting principles gene tlyr accepted in the United States of America. 1149 Nexia Board of trustees The Metropolitan St. Louis Sewer District Emphasis of Matter During fiscal year ended June 30, 2021, the District adopted GASS Statement. No, 84; Fiduoiary Activities. As a result of the implerrrentatixrr of this standard and the change in accounting principle (see Nato 1), the District added new fiduciary financial statements. In addition, the District adopted GASB Statement No. 89, Accounting for interest Cost Incovred Before the End of a Construct "erred (see Note 1), Cur auditors' opinions were rIoI modilFred with respect to these r atters, Other Maters Rearanred SuSuppitermantaty 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 Coranbutions to Employees' Pension Plan and Schedule of Changes in Total OPES Liability, as listed in the table of contents, be presented to supplemerit the basic financial statements, nts, Such infornriation. although not a part of the basic financial statements, is requite by thie 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 1. economic, or historical context We haVe applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for c+ rsistertoyf 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 riot express an opinion or provide any assurance on the information because the limited prooedures do riot provide US with sufficient evidence to express an opinion or provide any assurance. hior inforrntefiiwi Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The introductory section and statistical section are prawited for purposes of additional analysis and are WI a required part of the basic financial statementh_ These sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements. and accordingly. we do riot express an opinion or provide any assurance on them. Other t epo rti ng Required by .co,fernrnerit Auditing Standards Ire aOciardariCre GOveramant A ditilrn9 Standar , we have also Issued our report detect October 21. 2021, on MN consideration of the District's internal control over financial reporting and on our tuts of its compliant 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, arid riot to provide an opinion on the effectiveness of the District's Internal control over flreancial reporlirsg or err compliance. That report is an integral part of an auklil performed in accordance with GoserantamtAuditing Standards in considering the District's Internal control over financial reporting and compliance. Zie/47e-zor-f- zzd.-v CliftortL3ir o tAllen LLP St Louis, MiSSocrfii October 21, 2021 THE METROPOLITAN ST. LOUIS SEWER DISTRICT MANAGEMENTS DISCUSSION AND ANALYSIS For the Years Ended June 30.2021 and 202-0' The annual report of The Metropolitan St. Louis Sewer District t" 1SD" or the "District") includes the independent auditors' report, management's discussion and analysis MD&A"), and the financial statements accompanied by note . essential to the user's understanding of the financial statements_ Management of the Distriet has provided this MDa A to be used in combinatiori with the District's financial statements. This .narrative is intended to provide the reader with more insight into management's knowledge of the trnnsa ctinns, events, and conditions reflected in the accompanying financial statements and the fiscal policies that govern the District's operations. 2021 Financial Highlights The District increased capital assets by $2:10_{ million as. a result of increaxses. h construction in progress ($.181.1 million), land ($1_2 million) and depreciable capital assets net of depreciation ($48,1 million). The Districtplaced $141.8 million of capital assets into a;erviee during fiscal year 2021. The continued high level of pitala zation reflects the Distriet's work to meet long-term plans. Capitalized assets included Colteeirel arid purraa,pir g pleat $120.3 million Treatment and disposal plant and equipment $14.2 million General plant and equipment $0.1 mi!Linn Arid $1."x rnilli1131 The net increase to actumulated depreciation was $86.7 ,million which takes into consideration the recording of depreciation relating to new assets in addition to depreciation on existing assets offset by the accumulated depreciation relieved for assets retired during the year. During the ` 021 fiscal year the District implemented three Governmental Accounting Standards Board (a'G D") Statements and two Implementation Guides_ See Note 1, Summary of Significant Accounting l' wlicies` in the accompanying notes to the financial statements for more detailed informert.i.on. 2U20 Financial Highlights The District increased capital assets by $216.2 million as. a result of increases in construction in progress (06.6 million), land ( 4.1 million) and depreciable capital assets net of depreciation ($155.5 million). Page a TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbrtt. aared) The District. placed $2,18.3 million of capital assets into service during fiscal year 20"0. The continued high level of capitalization reflects the District's work to meet longterm plans. Capitalized assets included; Collecti an and pumping plant $225 ration Trca,rrnonk :and di po l pent and. eSquip:mint E3.' r�iilloc�n phfnt aii d equipment $+I,5 million Land $1.1 Lti1I1tr a� The net increase to accumulated depreciation was $83,0 million which takes into consideration the recording of depreciation relating to new assets in addition th depreciation on existing assets offset by the accumulated depreciation relieved for assets retired during the year, During the 20.20 fiscal year the District did not implement any Governmental Accounting Standards Board Statements, Required Financial Statements The basic financial statements presented by the management of the District include the Statement 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 Fi latciar, Net Position. These statements are prepared using the accruti I basis of accounting in conformity with generally accepted accounting principles in the United States of America as applied to government units_ This method of act. oriting 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 linanciarl statements. The District implemented GASB Statement No, 84, Fiduciary Athuiiies .`CARS Statement o, 8.41*) in Neat 2021 and included the financial statements of the Districts fiduciary activities in conformity with generally accepted accounting principles in the linked States of America. The fiduciary activities of the District include The Metropolitan St. Louis Sewer District. Employees' Pension Plan ("Pension, ension Plan"). ThE' '1 a to mente of Net Position tion provide a report of the Diustrict'e. current, rewicted, and other noncurrent: assets such as cash, investments., receivables, and capital assets. Also, the. Staterrients of Net Position provide a surrim ry of the District's Cut•rcnt. restricted, and non - current liabilities, inducting contracts and amounts payable, deposits and accrueed expenses. pension and (7PEB liabilities and bonds and notes payable_ Deferred Fig 4 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Continrted outflows and inflows. of resources, where applicable, are also included, The fatal 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 ileation may be indicative. of an improving or declining financial position. This statement pr ides 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 SL tome nts of Revenues, Expenses, ern es, and Cl1 r nge- in .Net Position lqu attn a ri a 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 arid cash disbursements resulting from operating activities, non -capital financing activities, capital, and Mated financing activities, and investing activities, These statements, assist the us 'r irti determining the sources of cast 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 r full understanding in' of the data provided in the basic financial statements, such as the District's significant accounting policies, investment instruments, outstanding debt, emplioyoo benefit plans, segment information and subsequent everts to name a few, The Required Supplerb°entary Information section provides detail in support of the changes in the net pension liability and the total other postern plo rrient 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 bettor historical perspective and assist in assessing* the currentfinancial status and trends of the District for which ten years of data is generally provided. F°inanci.al. Analysis The District's financial position improved in the current year.,.. as evidenced by the inCreaBoe in net position of $127.3 million, The improvement is due primarily to an increase in net investment in capital assets, subdistrict construction and improvement funds, and unrestricted funds of $1.14.6 million, $5,0 million, and $11.8 million, respectively; offset by, a decrease in debt service fund of $4.1 million., The increase in net investment in capital assets net position is comprised of a $230.5 million increase in set capital assets and a $31,6 million increase in unspent bond proceeds and is docreasiod by a $139.6. million increase in debt related to capital assets, in addition to these chan to net investment in La pi.tal assets net position, the increase in construction -related Page 15 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (aintinu d) liabilities of $6.1 million, the recognition of deferred gain on debt refunding (net of amortization) of $1,4 million and the $0,4 million amortization of deferred losses demeaaschd twt investment in capital, assets.. he sum of these six components nets to the $114,6 million increase in net inve tinent in capital assets net position. The $4.1 million decrease in the debtservice funds net position is due primarily to the $4„0 million cash. reserves paid out in Fiscal 2021 tocurrent refund certain debt. Condensed Financial Statements and Analysis Condensed Setatlitat4`nta of Nes Pol,;ltlon (MVO l +ttta L!i ti nitL gain 1%44111.1r LL rairr ILLmerla 4:46410 yl100.1a(mid r1f cx I.I niuls^Irri[ rlirpcbr'gW#,t 1 4 I Assets Jurt e86, Flu 1L'. '6 et7,66i,1, I 767,1113 -1.91.706.11X14 -1,431,9:12 CYY itrrral ratite Iiccwsi, Inns oni rortiesili t 7h,46.'F ri ro..rowu•ra:rs9e c1 ccut7lkiwa Id 476 4ILwJ J •r. lid IA nu.lolU+u .437 Tert,l Levi vrt1 C3uEitfrwF relit •r;ularrani MAR I.LtbIlftler [.'c}tr rN I hlht .* n:fiyrre t'1 J ittiIti. TiN n 1."awlci lJr'trx lid4rr4`61 I!.•••.. ii rem: Bondi and DM. Jklferr d pritili no rr(undEng f nrwrt, velatsld utl6sw 4.1111 -tK-.liiiVili 1611ri %n+1erDerkrintd ReinnIFICOld Net Pi It.lam. 'tiei W444•After lilt len Eiip6,e6I Aset.^Cr Ilnrt Fir !nil 4smrTrlrrl.,�t NAOS I liet,Kle, 71:25,d19 1,31)3 7, USG 4,;ii1 I 2641. I,"2,ri-w TnrsI !Ault 1'rti.i1I un # 3,.5,91,9•27 I 2.7714.62!1 2021 An ;1ys s Increase JAI Ilr %Il. 2619 tt ga1.1 411 f 9M,7tl •t.51"l�* 7,1fl 4.4.827 %i.hSr;GI1 Increase [boom aul '.11-2tl41® $ trl'.Y l ,+1.1+3 'I 7.04.6 Curtlellt, non -cure` in, restricted. and other assets increased $-lth million or 5.2% in the current year. The increase. is predominately due to an increase in investments and cash due to increased unAix,nt bond nd proceeds and more taxes levied and collected. Fu.0 43 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Continrtzd) Capital an is net of :accumulated depteeiat .t n increased by $2;30,5 million or 6.0% in the current year as the result of continued high levels of construction and acquisition of assets by the District_ Current liabilities increased by $12.2 million or 7.9 due primarily to an increase in contracts and ,accounts payable, current portion ti:on of brad and notes payable furld reta :nape held on capital projects. Non -current liabilities increased by $110.2 million or 6..4% pr ma.rily due to net increases in bonds and notes payable. total OPER liability and deposits and accrued expenses of $136.1 million, $1.8 million, and $1.6 million. respectively offset by a decrease in net pensionliability of $28.3 million. The net increase in bonds and notes. payable is related to the $178.6 million new senior and 6obordirtate deist issued be 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 reeniting from the fiscal 2021 direct placement refunding; offset by $61.2 million for fiscal 2022 senior and subordinate debt payments recl.assit cd to current liabilities, $11.4 million currentrefunding of existing debt, $6.4 million amortization of prern iu nl r. nit of discount.. and $1,9 mil Lion for fiscal 2021 senior debt payment reclassified to current liabilities payable on new fiscal 2021 debt, Net deferred outflows and inflows deere.ased $21.4 million or 185.6% due primarily to updates to various information provided by the District's actuary such as economiddcmogra.phic gains or losses, assumption changes or inputs,, and investment gains or loses related to the District's net pension liability or total OPE liability. 2020 Analysis Current, non -current, restricted, and other assets decreased $34.0 million or 4.1% bi fiscal year 2020. The decrease is predominately due to a decrease in investments offset by an increase in cash due to higher sewer rates charged and maturity of investments. Capital assets net of accumulated depreciation increased by $216.2 million or fi.t} r, in fiscal year 2020 as the result & r ontinued high level; or ( netructian and acyuiaition of assets by the District. Current liabilities increaseed by $3.6 million or 2.4% due primarily to an increase in current portion of bond and notespayable and retainage held on capital projects, offset by a decrease' in deposits and :accrued expenees. Non -cur -rent lip, b i l i ties decreased by $1,6 million or 0,1% primarily due to a $17.,6rr illion decrease in net pension liability and total PEE Liability offset by $15,8 million net increase in bonds and notes payable. The net increase. in bonds and notes payable is Page TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbntinwzd related to the $373.8 million new senior and subordinate debit issued fiscal year 2020: offset by $273,4 million advance refunding of existing debt, $56.6 million for fiscal 202' 1 senior and subordinate debt payments recla.ssified to current liabilities, a net decrease in premiums received on debt is suarneees of $21.1 million due to premiums retired resulting from the fiscal #O20 refunding exceeding the premium on the fiscal 2020 new debt. and 6,6 mil lion amt'rti:iotiwn of premi urns, net: of d iscourit. Net deferred outflows arid i ifto ws decreased 3O_1 million. or 72.3% due primarily to updates to various information provided by the District's actuary. such as economic/demographic gains or losses, assumption changes or inputs, and investment gains or losses related to the District's net pension I ability or total OI''E B liability, rage IR TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Co tinned) Siatrmen,too'&a+ti`Qi71to. Ktpt•n.r'1,anti Ulla rtgett Sri Net 1 .ti an (gip°,;) 4 /IA riff iirve iiIR+R; *leer wry rhrtrlJ,r+m *. 111.5 &-so T e ma,QF' 1 P' avieirarm far dolt/Fitful raiser NIP elt.ner ,u.. aural' i,a tiJ�;i I 6 Li:, 9 Uitl 1,I+Yna�a p°t'ramr atLdir#F.rrfeer t.�Thi 3a1t 7A2 k11111 (Jabot ,4 d 30,19C1 IrS. 2,1 Tetal dVOILliLiLie Rtftv temtw 4123,151 437;_4911 0- i 7 .il ik For the Floral Fur 4!•tirFiartal rOrlb* m l Year Ended Year Laded Year Eadrd. JILL &4, x.'31 J•ti trig 30. i4i20' >(diil* 311E 4419 41Perrera1 24)21-M211 Nr n apc ra l l nI liry eruierlu Property taxo5.levied by'the alt trw,:t 1.3.152.1 244-430 Intixxrrnriit Lriediffiiii 1,132 1i63iVi1 ftC+nc said (Orr *Rural?. = 3163 Total ;+1orrperer,LUng F eTrwviImo S5-314 RAW Total 'Coven utii i'PL 12 400391 Opurpr Ind Forprinuere, Pu mpniyE and rr aRIe l!nL {"c,fh -t.iit myaLu i in.yin rrasao('. Enru,r-rrinu trk.filt-f mail calmaltar raw Wigur beau?rletml [)u pretl' iataaa Li .L mumiiar®i.rie Y eat W1 Y L1,7Lirsg iwpolkge Nog-coperiding I tptrcars Not k.muri olowiuki said kink. tortild Buret* I4"4 • rte a rr iui RrKa.W r as :Lr rl rl w rl lr1 hteturef* eXprnebe Total Nr}rrmprrritIr litc i rarer. natal Kepoeimor looping Before {'appal rpplit And lsartlriihrr4,toit■ {'abort Ibrarur And Cantritra xmtr. *AN* in Mk Potirlare tier f'cL.ii.inrr - Hum uric Wf wRF Net Position - Red at Year IMMO 48113 11,3011 91,E h5..4111 Okla 91 AU ft7,12.3 16,024 11,1036 'OW € ! I3 INS 17.4,x8 'RAO k P9 4.434 411.x:3 15.27 r 111391 14.1;,3:# I4..70i •'�iI 1$3,6$± 2,77017a _'.4720. dA I 2.ARUM I 2, 7702.2!4 i.F, Lee' 22 r2'.4455 461 4L2 :1T7:1:7P41,tl'Ii 44%.277P 111. 0341) 1 fula 4-111,UL7 ?4;3 tit atirr7F Liguori 404.121 I I1iI •.1.103 452,1129 ,:e, ;AS �1�Lrlkii. $M 12$,$411 2.4 L,11fl :1. 0.524 (4411,1 7 ;37,7: 11211-.24141 MI. 14)-N 1'u lr TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Continued) 2,IJ2I. Analysis Net position increased $127_3 million or 4.6 5,6 over the prior year which wag a $22.6 million or 15,2% decrease from last year's net position increase. The largest impaets to net position were the decrease in investment income and the increase in interest expense. Total revenue decreased. by $17.5 million or 3..6% resulting primarily from the decrease in investment income., Sewer service charges decreased $5,2 rrail'lion m- 1_2% duty Lc the impact of the C VIE) t9 pandemic on commercial customers'. charges. Other operating revenue d a €d $6.7 r :million or 6'5_7% primarily due to a lawsuit settlement received.. on a sewer construction project in fiscal year 2020. Propel -lee taxes incased 8.2 million or 23J% due primarily to higher property valuation assessments and re-instaterment of tax rates i'or several oft hi. src rtnwater sut lien riots. 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, assetmanagement and water backup claims of $10.9 million, ;a.l.,2 million, and a7 million, °r epetitively; offset by increases in depreciation. expense of $3.7 million or 4.2% and pumping and treatment expenses of 2.-t million or 3.9%. General and administrative decreased primarily due to a; decrease in no pension ion 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 e of $20.5 million or 56.7% due to the early implementation in fiscal 2021 of GAP Statement. No. 89, Accounting [or Interest Cost Incurred Before the End of a Construction Perm CGASB Statement No. 8r) whichdiscontinued the price of considering interest costs as one of the ancillary charges necessary to place assets into their intended location and condition for use. Early implemere e E CASH SH ti etn nit 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 front copii l rcrntribiuti•amc r thdj value of capital projeets contributed to the District increased in fiscal 2021. 2020 Analysis Net position increased. $150.1 rraillion or 5.7% over the prior year v'hi h was a $20.9 million or I(2% increase over fiscal year 2019's net position increase. The largest impact too het position was the increase a in ewer service charges revenue which increased due to rate increases. 3"sag& 1.11 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbntititied) Total revenue increas d by $3r.8 million or 8.3%. Sewer service charges increased $30.5 million or 7.6% and the provision for doubtful accounts increased correspondingly by $1,3. million or 29.0%. Property taxes increased $i,3 million or 3.9% due primerilh co higher property valuation assessments. Other operating revenue increased $7.7 million or 311.3% primarily due tea lawsuit • settlement received on a sewer construction project_ Investment nt income decreased $0,4 minion or 2M% due to the decrease in Unrealized gain, offset by an increase in purchased interest and less interest revenue capitalized in fiscal 200. Total expenses increased by $5.9 million or 1.7 resulting primarily from the increase in operating expenses. Operating expenses increased 36,0 million or 2.1 with the largest increases in depreciation 1 4,0 million or 4.S and asset management of $ 3.4 million or 25,0% due to increased sewer inspection costs. Non -operating expenses decreased 0. 1. million or 0,3 due to a large decrease in non.r ecurring projects and studies of $3.1 million or 20.3%, offset by a large increase in interest expense of $3.0 million or 9 2% due to more projects 'being capitalized thereby reducing capitalized interest. Capital grants and contributions decreased $11.0 million or 63.2% with the majority of the decrease resulting from capital contributions as the value of capital projects ecintr'ile,ited to the District tl rt},t-t3cl sivni' icantl\- fiscal 2020 'L.'L7ndrz9r.e41. 1aiR1' 1795'ita PII C % FiCrita ifloblo Far the Fiscal' Yeau: rebid aline 30, 21 1:'or €hr ded s�7i9it�30,2024 1.°:4A1; 111 Iwo film *pc:rakin acil irles $ 310 ,674 $ ?11S.g7t1 Cuir4 It flows front rum 6,1313i/el Elk PI.cttv1tCif 4'.2,669 Ca31sii f1oWW dr!ltn espoikal and pasted linancirs r ctrintir'm (2111,837) Caali 11tYW him investing ikftiVitlth '•drt i,t :naive Odourenael MA1 Yttni taah Cash and cash ollunni k nta ILt rare sr Cola Arad Cash Equivalents At Etid Of Year E16, .16+5 34 ss3 05,381 ) 25,140 403171 P7,125 56, 6.1 $ 1122,265 $ 97,12 Ent. rfias e ilierrr'a m) 1021 -Z712(.1 7,706 40)1 4i.. 41144017 Far t'hhP F'i: r.Il a;ir E.1!t(kd Jwite 30.0019 1111,IIwLiij 22,3194 3 ,186 4 66,7,54 191a.fi'.1i19e 2020-2(115 Page I 1 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Continued) 2U21 Analysis The District ended the year with $122.3 million in cash and cash equivalents for an increase of $25.] million or 25.9% from. the prior year. Cash flow" from operating activities decreased by $6.3 million or 2.9% as a result or decreased receipts from customers and increased payments to employees for services and to suppliers for goods and serve, Cash flows from non -capital rin dng activities increased by $7.7 rnrlikm or 22.0% due to higher taxes receipts. Cash flows from capital and related Financing activities increased by $933 a million i r 30,7% dues primarily to a $99.2 million increase in bond proceeds and premiums received in fiscal year 2021 compared to fiscal year 20201 a decrease of $16.2 million in principal. interestand fees paid on bonds due primarily to the $26.0 million debt ser+iiee reserves paid out to advance refund debt in fiscal 2020 compared to the $-4.[0 million paid out. in frssl 2021 to current refund delis., and increases of $2.4 million in capital grant proceeds and $1,1 million in insurance proceeds; ds; 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 202'1 compared to fiscal year 2020. 2020 Analysis The District ended the year with $971 million in cash and cash equivalents for an increase of $40,4 million or 71.1 from the prior year. Cash flows From operating activities increased by $x'11.7 million or 17.1% as a result of increased receipts from customers and decreased payments to suppliers for goods and services; offset by an increase iii y miCntz; tO employees, Cash flaws from non -capital financing ng activities increased by $1.1 million or 3.3%. Cash flows from capital and related financing activities increased by $4.7 million or 1.5 due primarily to a $74S millionincrease in bond proceeds and premiums received in fiscal year 2020 :ompared to fiscal year 2019; offset by 9a $25.2 million increase in principal, interest and fees paid on bonds and a $46.5 remtllt m increaseinerease in spending for capital at -010A. Cash flows from investing activities decreased by $19.5 million or 17.3%, e decrease primarily stems From the fact that the difference between investments maturing and investments purchased was less in fiscal 2020 compared to fiscal year 2019 as more investments matured than were purchased in both years. 3"angs..: 1 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbntinrted Capital Assets C'onde need $t.n;terneatrccf Capital Astoeta Netof Depreciation iation rand C nsemeinn in H1.167014 Treatment aria &spoo plant amt, esnipmeldi: (Ulxticrn and purmpingpkini n►er I lalnr,r lair CLIU13.1431rrsl Total 21121 Analysis s June 3tla 2021 junie 30_ 26.21) 6 79.661J $ 8"a{-1 1194,033 1,11114/Kb 2,0.94,80' 64,078,342 $3,847,84.11 iliMWMMOMMEi Increase 221-2020 1,235 181,107 (2/-192) 6.8,46.1 1.142 231:1_45 .J mie 3O_ •21/ 19 74,21'4 a.-56.121 3.(i.1 l,7 16 Increase Crie ) 2020.20/9 $ 2/6,173 Total capital assets, net of accumulated depreciation. increased lay 2.sd0,.5 million or 6.0% over the prior year, Construction in progress contained the majority of the increase of Mil 1.1 million or 17.9% consisting of $299.6 million in additions offset by $l18.5 ln,illion of assets placed into service, Collection and pumping plant assets increased with WA additions of $68.5 million or 3.3%, primarily for capitalizations of assets including new and imp -o ed tiewera, dedicated assets, and infraatructure r r JF,r rs. Land increased $1.2 million or 1.6% due to the acquisition of easements and other land, and general plant and equipment increased $1.1 million or 5.0%, The increase.s lire offset by net treatment and disposal plant and equipment decrease o $21.5 m illion or 3.4% due to no large projects being capitalized in fiscal 2021 to offsetthe depreciation charge for the vr. lr, For more detailed information, see Note 4 Capital Assets, in the accompanying no!. the financial statements. 2020 Analysis Total capitalassets, net ofaccumulated depreciation, increased by $216.2 million or 6. ► over the prior year. Collection and pumping plant assets contained the majority of the i nk rea with net additions ns f $177,9 million or 9,.3%, primarily fi r capitalization of assets including new and improved sewers, dedicated assets and infrastructure repairs. Construction in progress increased $66,6,. million or 5,9% consisting of $28E4,73 l iilli0rl to additions offset by $232.7 million of assets placed into service, Land increased 54.1 rrtill on 4. -pr ri :, due to the acquisition of easements arid other land, These increases are Page 13 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion ussion And Ana1 sis (Cbntinrtzd) offset by net treatment and disposal plant and equipment decrease or $22i) million or 3,3% daze to no large projects being cap takzed i,n Fiscal 2020 to offset the depreciation charge for the year and general plant and equipment decrease of 4.4 million or 1.%%. For more detailed information, Kee Note 4, Capital Assets, in the a.emirripanying notes to the financial statements. Page 14 TIC METROPOLITAN ST. LOUIS SEWER DISTRICT Management's Discussion And Analysis (CD tinned) Long-Terrn I)iibt Conderkwd L Latumenis of Lang-Tk+rrn, (0114'n) 4u©e 30, 202 I ,Tuna 941. 2020 Seelux Reico rmo Bands: Sprlimi 2.01 1.5(11 $ i96.C]ll{I° $ 0.5100 loos 201 I rI — I 3.725 c+riFa� NI EN. .451,85% 40, 00 :etos ..404 211 ;L1,80KI .55.425 Solos ' O1 1E1 ;4!#,956 42 ,290 Series 2055@ 1E4,0 €1 1.100,9 50 Serie!, 20113C 1;18,740 1.14 ,695 Series a'd'F77r1, 305,500 1 3#19,240 Series 201 913 151205 2.,1:30 Retieaa MIX 4745hSLtr,r 27x41, 4155 a5.3m Seri PH 21121114 1 TFI, I`n5 164�`ut�r tarwntruclur+e Vinaunre luouvrtni>K+ tti 4Ykr IFIA} Seniar &Indic Lierioo-; 2.8.2 Srrliiar• Ile -funding trirrvonun IlaL dN, 11)LivV3 PLAMkriltnix .Seik a 202 LC 5.020 a1••ubindlmoe Rrvenne Bondln 4 tote R vafving Funds Pr genrnl. :tiL FIL! I4.00,4R I4;,$,2l¢ i�r, r;SIF 0.0600 -mm 4,400 8.5rilp9! t.ItikA 1 rp11 ,Sclir r Wan ,. 11;1ff; ll I cries MOM. fl 17,711#1 ! 11,75114 M5f,sonr1 [ l*F0.4 ?i'nI r,at Nsumen1 :enure : tarter* Limn I'n'af gain — — gierttwr°200 55.A. 11,N9r2 It,.00R Risrikkm Tel014 4,I'ti#0 5.000 1 ►r■ 2i1,I0rC 21, 2055 *111 Saito* I A +tI, T 11,149 Ratios 4: :41,01g 4 L.,li4-1 C.zanies MBA [W4,97,1 6•2,;47k5 Series 201 17051 17'.151L & ri+es NIBS 05,950 451205 Eger en 2(51 0,8 21,103 I9,12k4 Reirws NI 9A 22,0112 6,29 P020,01, 11.51+_4 I•lonpN ih1F ri4 rs iT:3 I 1.11+ i,114iN 6 1.5,SIs,1dM Tor Ty am? (11;esreneri 20211-2020 r12I a Ili, 1 9F 47005. 11,600 t 11:13,x+ ,i une aIl, 2419 661011 An r14 i 124,4410 113.6 190F,1 XS :I4#5.15 12,,760 202 64 6 21.795 145 11314 5.460 244.9P 4,1441 1,51.1119 2.0545 1i T.11O.Ir6-1 Inrcreave i;Ike1:rtal ey 220--20.1.9 12.220I 00:4,4214 I4.7,30 (51 17],¢15I 12 L851' 412,1001 113,52 01 52,1:30 27$,21;117 ,I1' i rC ],.792p 2,34151 R.,4;'r4 4 ,5529 :5.7 it 5•:1,x1; 6,:11°2 3"an11E, 1 5 TILE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbnt.inwzd) 2921 Analysis The, District ended rascal year 2021 with $1.7 billion long-term debt outstanding. The District had one senior revenue bond addition this. year, Series 202013, totaling $120.0 million and one senior refunding revenue bond direct placement. addition, Series 20210, totaling S5.6 million which was used to refund $11A million of the Series 2011B senior revenue bond, These amounts represent new borrowings and do not reflect the principal payment made in Fiscal 2021 cm Series 2020B. In additFria, the District added three ri'.•W Missouri Department of Natural Resources bonds, Series 2020A, 2021A and 20'2113, totaling $10.0 million, $5,3 million and $7.3 million, respectively. The District ;lisp receive[ 30.7 iliican, $7.9 million, $6.1 million. and $1:6.7 million in loan proceLqk from the Series 2016A, Series 2016B, Series 20183, and Series 2019A Missouri Department of Natural ral Resources bonds. ids. a '#iveiy These a.mountsrepreseni nifw h 11 rr{Iwings and do not reflect the principal payments made in, fiscal 2021 on Series 2016, and Series 201 B. Total principal payments of $613.6 million, excluding the refunding referenced above, reduced outstanding debt in fiscal year 2021. For more detailed information, see Note 6, Long -Term Liabilities„ in the accompanying notes to the financial statements. 2020 Analysis The District ended fiscal year 2020 with S1.6 billion in longterm debt outstanding. The District hurl one tax-exempt senior revenue land addition this year, Series 2.111.93, totaling $52.1 million and one taxable Benior revenue bond addition. Series 2019C, totaling $276.3 million whichwas used to partially advance refund .73.4 mi.11.ran of the Series 2012A, Series 201211, Series 2111.';R and Series 2015B senior revenue bonds, In addition., the District added one .rig. 9. Missouri Department of :Natural Resources bond, Series 2019A, totaling . aril] ,: 07 :Hui the District received $ ,9 :ryai[liiaat, $1b.9 million, and $15.3 million in loan proceeds from the Series 2016A, Series 20lf3li,. and Series 2018B ,;is ouri Department of Natural Resources bonds, respectively, These amounts represent new borrowings and do not reflect the principal payments made in fiscal 2020 on Series 2016A and Series 20163. Total principal payments of $.b2.6 million, excluding the refunding references above. reduced a utstanding debt in fiscal year 21120. Fair more detailed information, see Note 6,Long•Terni 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 rCD") 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. Sea Note 12, Commitments and Contingencies, for additional information regarding this litigation. The goal of MSI1 3"ang' 1.13 THE METROPOLITAN ST. Lours SEWER DISTRICT Management's Discussion And Analysis (Cbrt.t. nw d) Project Clear is to help MS D's: rate payers have a clear understanding of lielSITs goals and objectives. ML) Project Clear consists of three main components: Getting the Rain Out which is focused on redlucing excessstorrriwater from entering the sewer system infrastructure to help red.uce bklEvelliQIIL hack -taps and overflows; • Performing Repair and Maintenance to the exiieting infrastructure ructure to ensure it operates as well as possible for as long as possible; and • Building System Improvements where needed to increase the Cava its cif the system. MSD Project Clear will ,fatly 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. Sim Fehrun:ry 204, the voters in the District's service area have ,iiiithoried the District to issue r, total of 3.1 billion in wastewater revenue bonds. As of June 30. 2021, the District has issued $2.3 billion of the total authorization_ The District's tr:ict's knig-term. wastewater capital improvement program will continue to be funded through a combination of additional bonds and iorastewatcr 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, Latin Sewer Diwiot 23&} Market Street St. Louis, MO 63103-2555 5.5 i 4-7 8.6200 mget°stl msd:rrin rage. 1 7 THE METROPOLITAN ST. LOUIS SEWER DISTRICT ST. T I-:.)1 F N T OF NET POSITION Jut *u, i4Yrr1F{N:F tOSIP 4 Y1i-Y,mn i. At.:344A Unit 4Lrbeted Clodsnl 2k.6,4-16 1:adhiinaG2ti41Y.tiluiwria•ni+ x11337,11.1:1 l• E371 7f'? kroridsni, 210,941,744 26-11,3 ?'.`2.: _,+wrl• enaiaisoaIlalaF rre,,la1'Ida. i rwAlloonLJ Vof5•79,BL6Flt him 2021 AMA Sk+4,r3il,I54m211133,1 1€,krij11i1 Fi;4'i*ysal.7t L'nldliril rrrt4rt 1 e'rby t-621.mms Inrernn.l:rin 334 .,..973,247 3,2i4'e 22,11±.4313 Prop irks= woo roe i lvilai, 11a1e1r a1:11UirntaCia of $.7,4:431 in 21121 And 51I,&li4 in 211917 3.(24,411141 423,11 J1ttruaniiI Ii11Y tin.nvwrtrrinn4. 3,47;I,1327 I tE13 1 I11Mira' rIrrrem IIIra , Ii,z. p I iwnnin kir ifik374 mim XiM 1 kited �5ri.:1119 in ZILIV2ii ! $1i2 1 11.1M462 prvlias .flirrnlnri. a3..4„Thir1I II $,111$;507 TgaLII tllnrreerlcrei {:urrmrs AlAeuiel 411)2,14b,1711 4113 41s FRsr+.trIrl di TrrtnIl r<WLAra., Irma" And.?irwlt r-qntesdPr1 . I:!kr,.I mr°nr}u 1111x., -r r•+•(,-ivLhloq T101461 1iistatictrti Cat+rr',r`l Aineti Total Curl -4134 :astrt ktzto. rim 31.M1.311* 12,..513+7.475 11:1121,1445 1 i,PeipI 4f31,1N3 17.2730,71.1 MI:11.410 .' 4r1610.31111 4111,3310) 72,4 SYPIL-tau I t-t•u L ih.mi t I>I ttleit,d AinG t1Y Una iYYLL't'nl.li ryllerlllr•n1a N,297,,i4.311 25,743. 23 12twoo tyr 1 .617.13,74 /341,203.469 IaenK•GLnYM nvr.LtnrnLi R1169,117 311,63/21 .64 9',igaa.hts, I Las>r r4, kli'ila1.. !NM JI.11rwntatd $36,A417di .'1)'21 ni'Ii M,411.7 we 7 1 7601,111.11 1.'+1 6 Attruod Irv-4mo Un lru l.9tliulnt& 16%177 225„676 Tidal R.Atroirtwl _Vrara-C.larrnnit .k31.11w» I MASA 7.13,7 1 , (1x61hrt J4.rattlr •Mlw o c,1 I aer.a-tr-rm, roI..M�p,kmrml. T.n rrl1,P11eR,rA.L IE Capitol ieti Taisas:mriPt said albEry.konl paint and r-•,111fl.nrnt Collection Ins punting Oust GERM' III. piar111 +sa u+ii eat Imo : .ScgImrflitldo divot incr-rn ki t dYcpnritilit igarto Lntii Caa 11.1 ruJ* p•1l Ise t nn,Laraki Nri 1 ipiuui M t. Total Nrtr+{IClerrgilt a1 %vtF T�IIf A 4rti, DerOrY:cd Mirth' U 1 oaf ILA-MOLYYrL4 s` I kr rY rMa. nil it 1111g4-1, II.v.6b • Iii4r l I r I I 1+++ .4 n; ° r r I n I, .311, k• ESal�.liln-�liYlai9a 17911 YVd t1 :'Isr.' it ol171Yt Teedal Ilinfrrroel lllua Ili wti rif I oouorr.i Continued on islexi. 1'tige 1'l+k.1041, I,IISI 1613,11044 108444,1/75— I • • I, ',° 12 L2141,04,442 ifs,1L 1111 11141.114 4.131 4,5000-54,L 111 3.36-5,:376 2514 1,1'1f5,19t1,5,11ii 1.,114141.T4C607 2,11414,T.39,5841 2',756,1 1.62 733,54143,I1 I dI 7Ii1,31,R I .104fAsi.1 I 6.11'1 Va,1► 1 1 Ll11 a.447,810141(0 4.1113.1 4,1211 4,11k+1;4F7k1.lk k #,t+Iwl,I 1;411 a,ll"lt.itax�9x* 1_469,32.1 11,88S.T'311 10,476,4211 1.5,513,61:1 't?rICEn•IE 2_44,#1+6 i, lit 4is.t,I'1&ll 14,4(G .117 See the s LcoanplonyitrLig 33111.1Iir+ 111, 1Li11i1)L:iial A1.1i10 r)ienta. 3"a ge 18 THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS F NET POSITION (Continued) Jane SO, 1yi>t.bklt.Les 3100i Current Liabilities Current Liebiiitte.arl". iiiiie Prom Unteastritt[+d Aussetn tact* and paya 0.7.11.1TAZ2 34.017.153 Ckposits and nrcrued expenses 012.,271S.571 42.172,527 NH:Niina& ri,Iya 34.1024.4512 16,73E.18 -1 Ciirrcn7t portion of bonds and notes puyable GI.157.3C4 x 629. LOi Total Current LlabLtltli*ii-Prins We From Unrestricted Assets ldri,4s`r?,`,h* 855.I'o-}; Curt-eat LL SIie s -P* - blsi Frotn Itiosiritted &o -silt.; Conitreata and t rixi snan psaFaitan 7412,17r. 912.7111 lirtenaape papule 6111,3.101 8,131.A.4.11 Total Current I.lablitLties. ayaOl,e From Reat,riel.a•sd.Assets 104,0lit 1.766,M4 'Da* I Cm rrt4tit I.Its�4llti+l NorelDurrtnt 1.FuhilitLea Fes' �4C✓•7ik±1 QifF S�, aiA:nP.r9i R`y7 r se pr ti ue r hint peso El lixieilstip 'Fred OPER Ii sllidity LiGanda amid notes pnynblr Total Nam-Catrreat Ltott kte Total Liabilities Ilifk821270 163,613,775 9,201,tisi 1.51,4192 29,4spd... s 87,79r2.91 .!lif4,fiz^ ash 1414,$1 ft 1,7 53 .4161 7,t a 7O :, 1 L 1.,412.3H-7,124 7,73 Ti ai,12-1 1,'#a1t€ jda71,F4na9 1,117F013-1,004 DefaxredIpflows Rosnuressa Lands andnews piroiblss-F ferrnd gain an refunding r,;11(S,I69. 1,U1,209, Fkri5niinit related inflows 2 ,s5 i 1.3.Etli 7,1,19,4i444 i)1'7111 -re o-titesl inflow,, 4,3:10,4167 7'aital f9� fi:srr=c7t liith ws cif Resciurrres 11,W73,15.7-1 Net Poaitlon Net inerestmeni iri capital ussicta 2. ,119,31171,5 2,18d,3Xd32 t#+ad [+fir. Debt i rwici 21k:746.793 a:1,850,568 FaUbtlistrieteortsirtietioo improw,inent kia,212,411 '1L] 77,4St (Janistrirted ri060.69P301137 .11483,54,4-37 Toted .Net Pooklon, $ 2.1q17,926.6:70 d 3,7 i0.s3:c�.ke91 ;ire Lii1 nCOO 11 pits " irtg 1ts51.& to, ftrismci&1 :anten]etiI5, Parse 19 THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS OF REVENUES, EXPENSES. M4 D CHANGES IN NET POSITION Far Tim Ended ,lone 306 262I 1130d:4 OperittinigRarkrefritJed Sewer sentare charger 5 42 .347,7 IS ,93 Provision for: dowatflpt sewer aiar , kr, chargo itivonnts C5,3-17.4101 G01,611.11.461 13ecnzPS. perrrritsI find caber feevic 3,7E3,797 3.0112,38S C tire. r 3,4117,401: 11],1 Yt,.1.'a Total Operating Revenues 427.151.562 437,062.639 Operating Erpena I'trrrnpitag.dnd Ire atme:ot C rlkeriiiun ayrt rn mzaanienerace+ Engineerang 1^�r ener d,tad aaelmian igrr i,t1v 1 Wa, t e r backup drams Dellfet-iri.ieri Aid rannagentont Thtel Oper ating Expense' Operatkag Income Non-Opernting Ittrotitmrittei Property [luxe* levied by the Cliatriet invetitrotat a8c'iirat- l'?i,nt and aurae income tutail Non-Oireraa Hewer'ners rtrd-Opierar1lag Expenses Net Ws Ma dia r}VaC and male of e:in t al amels ;an -T to Q Tarojcw tarrtnd wadies Intereet expend& Total Non -Operating 6 tpe:taek Income Berra Capital Grants And Vora ribuiions 61,415,064 4:°630As1 45,112,M 4 : ".' 154 T 1,6{M).7; 1 ` 4ii• 55;1511,Cr 2 0 ,kM-4it,6S1 3,148-4_1&19 10/ ,3S1Z.269 67,633.312 39312' 141,023,9a3 17, I I J. 121 290,401,490 LNG i 39:'396. 1:14,1560672 H 1-22,_643 43.624., 1.392116 naatit 3,1 1 I6.;269..162 1341.1,631 46,310,242 52. 1 . DSO, MB 11.1 7,7.3 56,815,868 6 1,,,4 76 12,4 6I ,i 19,362 66.433.660 40.530.069 1.2.116C.61:1 14;.719.626 Capital 6rania And C44ttrrkislutIwtn Capital. 1. rook -114 (-r,a trmlula°e 12, 1,R,'6bi15 6.491,1 151 Grant re venue 1.7-9.S,101 11111,050 Teti Capital 'grants And 1C'.nrntributlnna I .L.7(11.164i 6.;tSt11.110 Can .eke In Not Pealtien Net PooltJatr 4 Begin n I,i OtYeatr Net Poeation - End Orroair 1 '17,297,7110 t513,104.1:16: 2,770,629,b411 1 2.[20.524.1N See tile its_ "oknput33X"intg rruit•= to, financial itaten]eiii5. l'age 24-1 THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS OF CASH FLOWS Isar The Yenra. Enttr-a ,1ttn+r 86, 21:1121 (s*1i Plows. From Oper'ri'In11 Activltiea m:tin-i1 &um enot4mrra Pni,41 Lo 4'M IP tray nctl,tx'w Paid Lo mupplic a far xntx and nencirro Net Ca .la Ptvvfdd5d By Oprrat rig Artivitiem Call% i k w .PrOvided'By Non -Capital Flrrta wing Le* Tiixri l,au+d and eallc<ted C'ati Fl xa Venn; Capital Ana Related fitatnw:Ie A cti •itiel 1'rr_J ;:ala, fri1rn efLpitat! grants l'rec rrti; from ixsuancecif debt I1mrniiim I§rtridp. Principal p.nid antlt]v►, lnteroat And fi •ic pe.iri e n dirk 1 nyrn4 rI For chpitel rr tits. Prcceedt From isle of capital ass.cts Proceeds r€,ceiml Frm]r ci hrr i izatian fna t kr=i,r enntributin.n .ii minatnaetirrr,raf treatment phut firm:wall Frr,7n iT1J .1rrrnc ram d1941nx1;idZnlaiin1 't`iq 11rbi 1 d A rri a r_ ca Mind tat, Not Cabal Plirsied hij Capitals And Related F+ituttidlnE Atthiu 1 a1 Can}r Flown. Frttrn Irrve4tir At:1 vitL i . F'nrel tips crf invc*. t rnent from a14 n il mcr1ul ity Orwrtitimora,ii livontment ire anala I`romeris from ra`nttr Ntt ('arkh rrxaridedL y1Llyvd 11,0 Ihorr_ ctin dletfivit r Net Irke MUM` L In Coati And Caesh Icy tlix^Ilents i`sa41b And Ca h F,quivnlaants, At Beginning OF Yrar. 44,41 And (-**h F grtivaltatitd Al End OF Vr:pr tr wn-mntis n i midtinn Clog ifwrntipn, curfreitt A L.111t - UhrekiCittlA CiuSh rtI,d 0y1.1i4e4.16114f Ckfamiti, Aae'♦lra- Ileslt etcd 'rrAh 411M.ttalu tiblrttAra Non -Curb rn tr- tea -161-ztarlrcdk .l C:41:$11 lama c,ydh Olt trlti rl�li rt 1 tistlnoneAtit ni Nn1 Pinlitinrn Tt> T Comb And Cumb Evi4valrtr4L Nnn- nsh flotpltail And Investing Acia 1t1 s NeL ltecrt>aa&Ftla from t4kbt taaan INN ;dams! 1111110 a -WNW tee reJUrrul halide Pri ntioirl offunnrit reauced mind ltltrttxd it rainL and related tkrerr i lattlipahn mad Iatelmiau a Prixectia fruits turxl to pay itnal.ei—wrvtert' dirndl). Capital A t. add LLitrrtl!Arlo d nittourita Iiatpiih1r Cakitiil nnst:t.o eutttrtlniardby u} 1 -*titer roveitrtaitilita and dra sputa C°etlrvshie nve*t mend itli ustmt rr1 $1 in1Ins 1 r41,4311411 (1:5Lpenisg) Continued on Nina Paw 42G,9291,{tt 14 ,5130,5201 009.324.4771 09.32,1,4771 1101. l $. l+l++1 110.01•41:96411 40,174 .,114 42.685.545 3,537.577 1 JU+13"r101 172,012,156 97,92 1...316 37,19-4,2M L2.iM1rf1,976 t6S , E19,1 RO) (52,&1.:1,711-71 (162,765,7'x31 1.u8.1151, 01 13L O4.40,d)25) (27 7,700.0391 1513,552 105:228 1,154,51116 L.1fi-l61W 1;1713ig,E335 I.64;2.l Fi'7 1.6A6.759 1211,535.5351, 130 5, 61.7 121 M32,1575,1921 (593,156.7;14.1 606,554,500 675,696.365 10,297,06S 10,99S,'i343 23S. L 22 2.11.167 t 16,585,8021 '_'5,11.0,124 w7,124,74I 4111,370.647 /16,7f.4.064 4 122.251,535 S 117,124,711 !1t,127$42 $ 26,297,303 47.P44.872 .#172 ;I,fi-trO,Kl it 24,741,x1!21 S 1;2,26],895► '1• 97.124.7 II. $ 7,371,754 (7,371.742h 23458,166 12,943;13IIF► 7411~6,32} 2.r114,44.$ S 271196.941, See the rtr. •.ttsripainyi.rtR tetrlti t tip f i-i,tsss:ial 11.1910 nteiita. THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS OF CASH FLOWS (Continued) For. The Year Endue June 3i1. O2I 2020 Recorteils lon Of Operating Inc -are Tel Net Cash Flaws Provided By Operating etivitie Operating Cri nie 136,690.072 $ 141,2E2,StEl juatnumit.,, ri,concile opers `frig income to net c n h provided by npersttrig activities; ,91,352,269 11.m-4:vim .117M3,312 Nom. evrsr rimr Trojans and attidies l L R27, 72) 2,453„231) Tax coininihsion fess 037,362 5073E Change in operating ash and liabilit-ia. - �leat'ri'4.i i iai billed and trril'aillrad .sokver Ner-'. iictL c halep ►its: i lie •(ca 1 f6,5 ) (3,,i):15,050) Decrease in other receivables 5,4,]Ifb 97, 288 a)a rrc-asra {increase) in supplier inventory 1461,822) 292,918 1lerrl`aNe h p•.°TI,`;'i 1 'rr=an.t d ru47dcri,v# ■7,1. C,: , 2 18,464,614 (3ni:risi:t) OPEB,related outflows 094,04171 (1,596.1542) r et ) increase in contracts and accounts p iyabb1e 69'3,426 (1.099;779) (Decrease) increase b (ix -waits its and accrued rc cer 990,938. (1.,83EL.1.9J (Dee reae) in net pc!r1 Lln lialnliiy r' ,' 97, r,351 6,1303.V2,4) (riverotAtO increaso total 014,1I3litthility 1.7.16,010 '. 1 ) Inereax in pension - fated inflows 1.;x.521, OO 2 D& d k. rt.t4e) increase in dii I. F -relat i inflows t4.12,5F21 Net Caiib Provided By OperRt ing Activities $ 210,437.1,C115 216, 70,..248 See thc, ficoo iprri)r,inl; noL& to, ftnsmcisl Ar.3ten]eiita. 3 ige 22 THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS OF FIDUCIARY NET POSITION EMPLOYEES' PENSION PLAN Decembe 3021) Af4ar.ts, irive4ann4nstsk sd ' l t CaNt9sq Irr,w to iira EstiSLio 3 1 71,767,752 S 130.0+62,4 .I. Mur.uiil Fuuukc 15(.1. I 7Y. 71).91+ ,61s 11 1 RI* inwistments , 0I 2I i 32,566,1438 Cerpar ate Onnisations 27, 3 '1 .S€ i 1, 1, F. Darma.KiicCram .mob Siucr..5 EH k52_256 l+i,A+6S, s2 US Ts vaauryand r eearq O ]igmE,i;orsrs 12,09.1.72i 16,4'28,7117 M une% i*a G 1'uruka 323'4°,837 A, 1111,25 t 11a.rnrc]pnL biiRntiamx 129 ,527 54,144 °I'aVal. IttibviiirricILi! I vhles Irirrretst rarrd 11ivici srrls. Itevermhbri Rec iv ble a T'ttRf Asset '1.kiliil ti�� Accrued Expenses T1N.tgl I.0E111itYep T LL I LI rill r% "ati c+i 1'n i if n iti t1 ie � � f'cyr flipmerite 326,9241.3617 96,1.x1377 236.720- 23:1,7211 236,129 211S.7-2,16 327,157,086- 2914,-185,503 2:1.,1,402 282, , 2142,R56 326,919-1624 S 296.202.6.17 See tht riL5E"i.mpai yirL E tvi,& `CL`h f ii.ii]s:i al Auto r)ienta. lFac}.44. 23 THE METROPOLITAN ST. LOUIS SEWER DISTRICT STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION EMPLOYEES' PENSION PLAN For the Tears,. Entieci December 311, 202E tale Additional, to Fiduciary NiaPosition AttrebtitetI tic in it t raae^nt Inman e: Nvi Apprevia burl III nut of lures tnaiinttZ 32,lltia.4 ? $ St1,019.Kh role e -4t acrd Divides is 6yfs14;283 1.,5,121825 ei I.nvr^wt:rcra^ei1 I:nocrrOL 37$07.720, 412..1627 I] 1,t14 - m mot Marrag rL' and Athisene rett. 922.422 3I 1 "tit"r 1 itiViAkEnt tat Iribudne 331-k7a ZY 4 41.0,31,484 Einp]tiS€r Contributions. 13.41t3.0136 12340,-i06 'Fetal Aclrletici=r-. 5rt].d8t ] 3153 s ,: 71..6:Ja Deductions from Fiduciary Net 'P'usx1t un Attributed tu: 114:euat'ets: 1".iit! in Bet intc.4 .rnri I3a:nr"iiclar"dos; AeimmiJ FOICIA auc= Total Deduct Norm D.,273,01:317 113,025,M 108,,22a 102,g29 10,38132G I FC 29,:419 Net Incee se t1=71;C}0S? 35,64'Z.0r 1 Fiduciary r Net Position n BeHtri ted far Pension Beniefit& Jannfury 1 90,2 ,54? 43,E 6U,5 a tai b iduei it . Not PaNition Restricted for I`cn! iOn eneeft:r, 1}L 4^e3nl]err 3.1 $ 326:9I2-68.4 S 2913.202,6+17 Sae Ole ficooknpuli)y°intg tinti, to, fttiaiici&i italen]eiit& 1"a gt. 2.4 THE METROPOLITAN ST. LOUIS SEWER DISTRICT NOTES TO FINANCIAL STATEMENTS June, 30, 2021 ANE1 2020 I. Summary of Significant Accounting Policies Organization The Metropolitan -Si.. I )(ibis Sooweir District ("District") was Au.t prized by the voters established and chartered under Article VI, motion 30 of the Constitution. of ,Missouri as a rnrmicips.] corporation and a politic:,] subdiii►isiori of the State of Missouri, Upon creation in I954 the District assumed responsibilities to provide for the constri tier +oper}tic n, and maintenance of the ewer facilities within its. defined boundaries. The District's service area now comprises all of the City or t. Luis and most of St., Louis County, Subdistricts within the District's total Mice r a representseparate geographic areas s ithi. which specific taxes can. be levied to operate and maintain wastewater or stormwater facilities within the area or construct irnproveinents within the subdistrict_ The District also maintains all of the publicly owned .stormwater sewers within its original boundaries. and is ctmtinuing to accept .maintenance of the stormwatcr sewers in the remainder of its serve e area. itrsuant to provisions of its Charter and subject to /imitations imposed by the Constitution of Missouri, all powers of the District.tare vested in a six -member Beard of Trustees ("Board"), three of whom are appointed by till. 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 5s me political party. Reporting Entity The District defines its financial reporting entity to include all component units for which the District's governing body is finaricially accountable. To h • considered financially accountable., the component unit must be fiscally y dependent on the District and the District must either 1) he able to impose its will ort the component unit or 2) the relationship must have the potential for creating a iin,:u iH l benefit or imposing a financial burden on the District. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) The District sponsora a aingie employer defined benefit pension plats and trust for which the District contributes the actuarially determined contribution each year. P'u;r cant to the adoption in Neal year 2021 of Statement No. 84 of the Governmental Accounting Standards Board, Fid.riciGrry Ach hies, it was determined 'hat the define -d ben.edit pension plum 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 Change: 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 pnbliely 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 r3 adpr ectelear.orl webeite_ While included in the • separately issued report, t he Cash and Investments and the Fair Value Measurement and Application note disclosures for the fiduciary activity are presented herein a$ Notes 16 and 17, Bassed on the foregoing, the District's finaarreia] statements•include all funs that are established under the authority of the Districts. charter, There are no agencies. hoards, commissions, or ut horitiea that ire controlled lled by or &pc I -dent. on the District, Measurement Focus, Basis of Accounting and Financial cial tatement Presentation The Governr114'c rf�] Accounting Standar.rde Board C GA W) is. the set -Toed standard.,setting body for establishing aocounting and financial reporting etandard>y for US. state and local governments that follow generally accepted accounting principles CO . As a political subdivision of the State of l'itssouri, the District follows SBi Pronouncements. Throughout the year. the District maintains its detailed accounting records on a modified accrual basis or mtit . In order to account for the traneact•iona related to certain subdistricts and restricted resources, separate fund accounting records are niaint.airred. For financial reporting purposes, the District reports its operations as a single enterpri ee fund and the financial statements- are prepared in conformity with accounting principles generally accepted in the United States of America as applied to government unite, Accordingly, the accounting recoisie are converted to the accrual basis of accouriting and all interfund transactions are eliminated, The District's. fiduciary financial at ,ta rnertt are also presented in conformity withaccounting principles generally accepted in the United States of America on an accrual basis of accounting, Under the mese.Lail ] basis or accounting, reva.ie,5.i.es are recognized ed when earned and expenses ,ire reeognized when the related liability is incurred. The District's measurement focus for boththe basic I':L ,2 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes ttr Finencial Statements (Continued) financial statements and the financial it cial statements of the Dfstricee fiduciary activity is on the flow of e00110illic resources, Revenues hues and expenses are divided intrl operating and non -operating items. Operating revenues generally mule from providing sere►icoe 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 expaerisea include the casts associated with the conveyance and treatment of wastewater and stormwater., administrative expenses, and depreciation on capital aeeets, All revenues and expellees not meeting theee definitions are reported as non -operating revenues and expenses. Non -recurring projects and studies (shown as iron operating expenses) consist of expenses related to unusual charges or losses that are unlikely to occur again in the formal course of l urine s such es work related to federally declared disasters, projects originally intended to he capitalieed that changed scope when a, decision ion wee made to no longer build an asset., and any non -reimbursed work performed on assets not owned or maintained by the Di triet bat 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 Nu. 33, Accounting need Finnacuai Reporting for Nonexchange Transactions, which establishes accounting and financial reporting stand rrds for nonexeharage trsn: moos involving financiel or capital resource- GASB Statement No, 33 groups. rrnnexchange transactions into the folieweia reur claswee pored rapcata I laF it pri13d11PRf a tretOri tk : 1i1c°riVL• tax revenaiee, imposed nonexchange revenues, government. mandated nonexeh€ange transactions. and voluntary nonexchange transactions. The District recognizes assets from imposed nonexchange revenue transactions in the period when an enforceable legal eleirn to the aeeets AriEitii or when the msourceti are received, whichever occurs first Revenues are recognized in the period when the reanurcee 1,re required t ] be tweed for the lira period than use ire permitted. The Dietriet recognizes revenues from property taxes, net of estimated refunds and estimated uneollectible amounts, in the period, for which they tax; levied_ Imposed nonexchange revenues also include licenses, permits, other fees, Intergovernmental l 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. 3, have been met, Any resoureee received where all requirements are met with the axe:option or the. time requir r:,r•m►! are recorded ss deferred inflows. All other resources received href rr arm' Dl krr}r. eligibility requirements are met are relynted as unearned revenues, ]FaWg4' 27 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued), Cah and Cash Equivalents The District eon sidui's. highly liquid nvestroe tw Ir5 ig in 1 rit: I Liril.y ar less than 91 days to the District to be , h Equivalt•ni S. nveStme lets The District accounts for its investments at fps i s• 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, Farr Value Measurement and Application. The hierarchy is based on the valuation inputs used .o measure the rkiir value of the asset. Level 1 impute are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level i inputs are significant unobservable inputs. Changes hi unrealized gain (lost) on the carrying value of investments are reported as a component of inv tracrit 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 bon -current assets or for other restricted purposes, Accounts Receivable Accounts receivable is coinpose4 primarily of charges, to customer's for wastewater services. Accounts fire considered past due 30 day from the invoice date.. Receivablek5, are reported at their gro values net or an all swanek: I`c,►- u,r llectible -amo nts. This allowance for uncollectible amounts is based on historical, collection experience. Throughout the l seal year unbiiled sewer service charge revenues are €iuc nieti by the District based on estimated billings for services provided and then actual =billed sewer service charge revenue is accrued at the end ofthe fiscal year as all ratepayers are billed in the following month for the previous calendar month.'s services with the billings spread ov r twenty-three different billing cycles.. Page 2H THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Finencial Statements (Continued) Capital Assets Acquired capital assets are recordedat historical mast on the acquisition date, In acoorclanoe with GA T1 Statement. No, 72, donated capital aseets are recorded at their estimated acquisition value at the acquisition date. Depreciation iscalaculated. on a straight -lime basin older the following estimated useful lives: 11.1.sefel Lae Clefts eiMeets to Pestre taut€dings (recorded. within ot.her categories) 20 to 50 Conertion y m 20 to 100 Pktropnig S t4. 5 to a Treatroftot & iliopoo4AL Plant 5- to 50 Vehkko 7to10 General Support Equiprnei t & Furniture 3 to 10 When developing beer charge rates, the District ineludes funding for replacement cost or 488,ets, which may differ from deptwiation expense recorded for financial reporting purposes, Normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Betterments are capitalized and depreciated over the remaining useful lives of the related assets, as applicable. The District defines capital assets as assets with a minimum initial, individual cost between 85,.000 Hnd $15,000, depending on the class of assets as detailed above, and an estimated useful life of at least three years. At the time of retirement or diepose I of e'apital ae:-o s, rlyt, related cost and ;Lecurnolated depredation are removed frorm, the aunts and the resulting net gain or loss on disposal and sale of capital KIIIAS is reflected its non -operating a 2pennes. A portion of the prior fiscal years" interest on debt was capitali2ed as part of the costs of capital amts during, construction baeed an the related weighted average net borrowing costs incurred.. In fiscal year 2021 the District early implemented. GAS B Statement NI,. 89. Accounting for interest Cosi Incurred before to End of rt Construction Period, resulting in all interest cost incurred. in fiscal year 2021 being charged to interest expense in the period in which it was incurred. The amount of interest cost incurred in 2021 totaled $53,151.605 of which $44,846J4.8 was incurred on tax-exempt borrowings and $8,305,457 was incurred on taxable borrowings, This $53,./51.605 excludes deht issuance cost, agent fees and amortization of deferred gains and losses of $3,464 . 26 3. In fiscal year 2020. the flietrict ; total interest grant incurred on borrowings during the rr :ar I year W a s $50,16 88,152 and of the Fiscal year 2020 total, $415,917,107 was incurred on tax. exempt l car4rowinge and $.4,770„74t5 was incurred. On taxable- h, rre wir,.gs. Of this total interest st cost, $19,2,52,310 was capitalized and `d 1.,436, 2 was expensed in. 3"fit+` 9 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) llseal 2020. This $31.43.5,842 excludes debt issuance cost, agent fees artd amortization of deferred gains and Losses of $4,6a3„520. To offsetthe interest costs capitalized in fiscal year 2020, Critcr `At revenue on unspent band proceeds of $],636,310 was netted with the interest expense resulting in a net capitalized interest of $17,616,00E) in fiscal year 2020, COSILB incurred for capital construction and acquisition are carried in construction in progress until c rnplet on of the related projects. The major component; of construction in progress are the costs incurred to construct new tunnels, storage facilities and Sewer liners. rehabilitate snd separate existing sewer lines, and to make improvements to pump stations and treatment plants. Costs related to projects not pursued are expensed when terminated. Suppli es 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 inverit.ory figure is netted against those mat risk and supplies deemed to he potentially obsolete. All inventory is stated at weighted average cost arid expel, sins are recognized when the inventory is consumed, Net Position One component of the Distria:t'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 isisets. 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 not position. The restricted component of net position consists of assets and liabilities. regulated by external constraints imposed by creditors, grantors, contributors, laws, or regulation?, of other governments or constraints imposed by lnvir through constitutional provisions or enabling legislation, Property 'nixe=s levied by the various subd�istricts and other revenues received for canstructii.m in those sub. district have oleo been restricted for that use, Sewer extension and c i ,neeti,r n fees, grants, and other revenues received for construction within certain sub. districts have been restricted for that use, Its addition, a portion of wastewater sewer charges have been restricted for the payment of principal and interest, including accrued interests on outbtaisiciing debt of the District. Paige all; THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*l Statements (Continued) 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 asset's. The fli€etriet fiat applies restricted resources when an expense i incurred for purposes for which both restricted andunre.stricted 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 reeoarce5 consist of the consumption of net position that is applicable to a future reporting period and so will not he recognised as. an outflow of resources until then, Deferred d 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 wh ariiorti.zed over the shorter of the life of the refunded or refunding debt. The pension related deferred . utglows of x :source represent contributions made to tbi. plan between the measurement date of the pension liability and the beginning of the next fiscal year eti well eras i r t.iin aetilariial differences and changes that x amortized over future periods. The _ other posttempioyment benefit (OPEl3") related deferred outfle ws of resources represent present. benefit payments made between the measurement date of the total OPEll. liability and the beginning of the fiscal year. following the measurement date and certain actuarial differences and changes that are amortized over future periods. In addition tol bi1it ie €;, financial ti t rraents may report irt 9 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 Ito refunding long-teurni debt is also reported in the Statements of Net Position due to the recognition of rA deferred gain r.s ulcer frorn thedifferent* in the carrying value of refunded debt and its reacquisition price and this gain is amortized over the shorter of the life of they refunded or refunding debt.. The District also has deferred inflows of resources related to certain changes in pension and OP'ER obliga iorts that are amortized over future periods,. Capital Contributions Capital rutr'i ilk) ati tee the District represent guvernrnent grants ocunsi other aid used to fund capital projects and are reported at their estimated acquisition value. Iua accordance with GASB Statutnent No, 3a, capital contributions s are recognized as revenue when the expenditure enditure is made and the amount becomes subject to claim for reimbursement. Page 31 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Finenciai Statements (Continued) Bonds, good Premiums, Discounts .and issuance Costs Bonds and notes payable are recorded at the principal amount outstanding and are reported d 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 urging the effective itttert t method. Bond issuance costs are expensed when incurred pursuant to OASB Statement No. 65, Items 'revior.rsiy a reed .As Res 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 truet with an escrow agent to provide for all future debt service payments on the refunded debt are not included in investments. Compensated Absences Vacation Under the terms of the District's personnel policies, employees are allowed to carry m L i rrit ril of 30 to 45 darn of vacation (depending on length of se rice) from One calendar year to the next. Since vacation accrued at year-end is expected to be used byte employee e during the following fecal year, the accrual is reported n a3 component of current deposits and accrued expenses payable. Sick Live Empl+ees earn sick pay benefits ranging from 10 days per year to 12 days per year (depending on length of servicii9i Unused sick leave can be earrit,hd over, at Year'end without limitation. An employee retiring from the District with five or more years of service will be compensated for any unused accrued sick leave at. -the rate of L25% for each year of District service multiplied by the unused accrued sick leave remaining at the employee's current rate of pay lip to a maximum of $50,000- The Militia hoz .recorded tided a liability which holt been actuairially determined ined to be equal to the accumulated expense charge that will amortize the employee -s' benefits over their period Of WWI et Service. The liabiliry. 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 leave expected to be paid after one year is recorded as a component of norecurrent deposits and accrued expenses payable. 3"a 32 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Staigments (Continued) Pensions For purposes of measuring the net pension liability, deferred outflows of resources :Ind deferred inflows of resources related to pensions,and pension expense, the fiduciary net position of The Metropolitan St. L+cauis Sewer District Employees' Pension PIarr CaPirrr iarn Plan") and additions toldeduetiens 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 Dumber ;11 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 l 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 estirnates. income Tax Status The District is exempt from federal income tax under the Internal Revenue Code as a political subdivision of the State of Missouri. Adoption of New Accounting Standards During fiscal year 2021 the District implemented GASB Statement No, 84, Fiduciary Activities ("GASB Statement. No. 84"), originally effective for reporting period t a ing after December 1,5, 2018, GASH Statement N. 5, PosIprtrerrcnt of the Effectitv Dates of Certain Author-itatiue Ouidance ("GASB Statem.ent No_ 05'1 postponed the effective date to reporting periods beginning after December 15. 2019. GASI3 Statement Na 84 describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds; (2) iriv'estmetrt trust ft nds (3) `tr1. ''a;te-1 tlrpo*i_r trIWt fund$: and (4) custodial funds. The criteria for identifying fiduciary activities are established and i'Dt u45 fir the criteria is on( 1l whether a goveartrim nt is controlling the meta 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 fur accounting and financial reporting purposes and how those activities should be reported. After adoption of GASB Statement No. 84, the Marie began reporting the fiduciary :Leti.vitiea of The Metropolitan St, i)U,i4 Sewer District Employees' Pension Plan in the financial statements. The District early implemented GASB tatement No, 89.,. Accomirring for Interest Cost Incurred Before the End of a Construction Pried C GA $ Statement No. 8R"), originally effective for reporting periods beginning after December 15 2019, and 3'duke 33 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Finenelai Statements (Continued) subsequently postponed to relenting periods beginning after December 1,5, 2020. by GASB Statement No. 95, The requirements of this Statement are applied prospectively and diecontirroe the practice of c arosidering interest costs as one of the ancillary charges necessary to place the asset into its intended location and condition fear. use, This authoritative guida.rrace states thatdecisions regarding how to finance the acquisition of capital assets do not impact the service capacity of a hose 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 iricurred before the end of a coestruction period. In financial eta temente. prepared using t h e economic resources measurement focus, which is the District's measurement fnacus, interest, cost incurred before the end of a e nstruction period should he recognized as an expense in the period in which the cost is incurred and should not be capitalized as part of the historicel mist of ea capital asset. In fiscal year 2021 interest during construction is now expensed whereas interest wets related to the construction of capital assets incurred prior to fiscal year 2021 were included as a cost of time assets and will becapitalized when. construction is completed and the assets are placed in service. llurin . fiscal year 2021 the District reviewed GASH Statement N. 97, C'ertai'rr Component Unit Criteria, and Accounting and Financial Reporting for Internal aevento! Code. Section 457 Deferred Compensation Piano -An Amendment of GASB Statements No., 14 and No, 84, and a Supersession sion of GA B Statement No. 32 ("GASB Statement No_ 9 r )T for which Berta$ n 11 1,141 I ] C • r! I Lr]l'i.ti wore 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 spoecifiedwithin this Statement). The primary objectives of this Statement are to (1) increase consistency and comparability Mated to this reporting of fiduciary ary component rraitr+ ire circumstances in which a potential component unit does not have a governing board and the primary ga verremerot performs the duties that a governing hoerd typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans as fiduciary component units in fiduciary fund f'rraneinl statements; and (3) enhance the reievance, coneistencyand ctornpar•ahility of the accounting and financial reporting for Internal Revenue Code Section 457 deferred c mp .a tis}n plans ("Section 457 plan') that meet the definition of a pension planandfor benefits provided throughthose plans, Based on the requirements in this Statement, the District's defined contribution plen and Section 4M plan do not .qualify as fiduciary activities and their financial statements are not required to be reported with the District's basic financial stet e'rnente. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) During fiscal year 2021 the District implemented all applicable and relevant sections of implementation Guide No. ` 019,1, Impiapm n#o-tion Guidance Update. 201.9, for which the objective is to provide guidance that claa.rif , explains, or elaborates on various GASB Statements and implementation Guide No. 2019.2, Fiduciary Activities, for whichthe objective is to provide guidance that 'clarifies, explains. or elaborates on the requirements of Statement No. 84. Fiduciary Activities. During fiscal year 2020 the District did not implement any new GASB Statements. The following GASB Statements which became effective during fiscal year 2021 and 2020 Etre not applicable to the District and there is no implementation hriptact on the District's financial reporting at t.]ai:4. time. Statement No_ 90. Majority Equity uity kteresta, an a01'6'n mial of GASB Statements o. 14 and No.. '1 (fiscal 2021) Statement No. 83, Certain Asset Retirement Obligations (fiscal 2020) Recent Aocoustting Standards GASB has issued additional guidance that is not yet effective_ In addition. GASB Statement No. N. Postponement of the a "ffectir e alto of Cerlain t torGt iii Cheidance, was issued in. May 2020 which postponed several of the GASB Statements listed below, .e new effective dates are indicated below. The District is currently reviewing the provisions of the following GASS Statements to determine the impact of implementation in future periods. Statement No. 81, Leases (fiscal 2022) Statement No, 91, Conduit Debi Obligations (fiscal 2025) • Statement. No. 92Omnibus 2920 (fiscal 20 22) • Statement N. 93, Replacement of interbank Offered Roles. (roxal 2022 • Statement No. 94, Public -Private vate and a-ub1icrPublic Partnerships and Availability Payment Arrangements ngemen (fiscal. 2023 Statement No. 96. Subscription -Based af- far€nat. m Technology Arrangements (fiscal 2023) • TrropienieStation Guide No, 2019-3. £Rases (fiscal 2022) Prior period financial statement amounts may have liven reclassified to conform to currant period presentation. Those reclassifications, 11, any, had no effect en the changes in net position or total net position. Page 35 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 2. Deposits and Investments l epos i 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 hank balance, $93.5„107 wa$ coverers by the Federal Deposit Insurance Corporation ("FDltom" ); $103,731,171 was collateralized with securities held by a third -party financial institution in the District's naanw. In addition, the District has money market mutual funds of $19,990,860 held in a trusted escrow account for the State that will be used to make Future bond payments. At Manic 3% 2020, the reported amount of the District's deposits wa $75,013,119 and the bank balance Vii LS $80,405,1,17.. OFthe bank balance, $873,4l=3 was covered by the Federal Deposit Insurance Corporations ("FDIC'") $79„,531,734 was collaterali7eil with securities held by a third -party f n .nt z] institution in the District's name, 1.ri addition, the District has money market mutual funds of $19,589,30 held in as trusted escrow amount ount for the State that will he used to make future bond payments. Custodial credit risk for deposits is the risk that, in the ilAiTnit or bank failure, the District's deposits may not be returned to the District. .Deposits in each bank art insured by the FDIC in the amount of $250,000 for interest hearing aocotnnt.s and rtonlinterest bearing accounts. The :District's invem ment policy complies with the provisions of state laws and requires collaatcr; a h anon on repurchase agreements, tlrrie certificate!) of deposit and deposits will hz aatku g institutions that are not covered by the FDIC. and the collateralizatioaa 1 o vo I hat] be 103% and .shall be based on the fair value of the pledged eollat,erral. Investments The Secreta►ry•Treasurer is authorized. to invest, with the o 1 l».oval of the Board, .funds not immediately seeded for the purpose to which said tLJtlil are applicable, in the same manner as the state treasurer may invest hinds of the State of Missouri pursuant to motion 15, Article IV of the Constitution of Missouri, as amended from time to time. The District's inv tmenit policy conforms to the investment policy guidelines for the State of Missouri_ The District's investment. policy authoriv.es the District to invest in the following instruments; ; U.S. Treasury obligations.,. certificates of deposit, obligation's of any agency or instrumentality of the U,S.. repurchase ag�TN'mvntS. honkers' t ccep lAnces, and s ► atnerciarl paper, ell according to terms specified in the policy. The DistriEt also has investments in rfior ey market mutual funds tha;t hold. securities approved by the Dis.trift°H investment policy, At ,hire 30, 2021+ and June 30, 2020, all of the District's investments were in cornl li.rnee with the District's investment policy and Charter, Pane 3fl THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to FinAnciai Statements (Continuo* A summary. of de sits and investments as of J une 30, 2021., and June 30L 2020 is as follows: SOH I 1411a. 741iirt0y ld®r#at M rni�al FafMIll IJ 'I'Y+ ewld-l° weld i.ii clne Cl-hEiliputizom Commerrtg1Pallet Fear limlue Com{ '4alae $ 97274, 20 $ It72?4,[!g1 ThtF7L,1 L4! ffi 7il,dtk3.119 IS 010110 1991.11LISJ 113,f,F:g,31irl 6-39,11391 3YR EMEL12. : ,727,13.44 3.F! 3.214,51h 410211322 418..136.W 6 d ,fir 4kD:SA?,73.►'# /au] S 41:43,927 8 702A:141,317 t45I.7 1.q'fl I 848.#63,120 A reconciliation to the Statements of Net Position is as follows: QS] 2022 Gq*h Rind Cad, I'eQl1#tiVkl'4'nkt. 1Jtxtst:riftrtt Current S 91,331,343 $ 67,302,872 11,itirietpd Curt in 4.629,en 3,158.0.818 f}.818 I trittOd Nait..Cietrett 26,297,343 2'5,741,923 Ik,4 Yintinht* Llnretst Cent 210.941 ,744 14.2 .s2 RettrictodCur rA 12.687476 17X92I,S I rtiNetriott Istan,errr'ni 1 4,037,371 94),3011,4n9 I�arm�.'rLTrn lnwirtutlatt+.rii.r . t aKtrici.ed No Curl 14 32,1f49, I ]SMA04,1OI' Mud $ 102,033,347 154, 3EU4] ,483,170 Page 37 THE METROPOLITAN Tr LOUIS SEWER DISTRICT Notes to Financial Statements { ontinuc*? Interest Rate Risk As of Jun{ :l0, 202], and 2020, time. Dig trkt I htt f 111 `ittg i ttnerits and maturities: 21421 _"4ub[M itt.i ur , [ taltrt,rlan, MEL Agore U41tkaLiuiir; Grnt nnrclaii I ip yr Timid Fair'4.alur ; 99 1 Atil 441, L a4,911WF We re raxt rituplty li#M I Lc LL 11124 1 Jdb Fairy ht# t 51,71 11,6 366,5412,2 6171,347, 70.1 In accordance with the District's investment policy the District will minimize the riskthat the fair value o,Fdebt securities in the portfolio will fall due to in.creasos in general interest rotas 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 prim.aril in short.term securities; 3. Complying with Otte law which limits the m di4mtin 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 shex -term investments, the District also categorizes a sizeable amount as longterm under the categories dialysed in Note 1. Summary of Significant Accounting Policies. The District is allowed to purchase long -terns 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 i called, the District reflectb, an immediate reclassification from long-term inveFt rnent to cash" Pa kite 36 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements { ontinue:4? Cistoddabr redit Risk The Oisthet will eih irnv rJCirOdirt risk for invearnents, the ri&,l< jf k due to failure of the security i -m r or backer, by: 1, P'requalifying 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. 1 hvsa' investment typo's t:E) those in r stment.s with the top rating issued by Nationally R ogrrin•d. S'tatist.ical Rating Organizations. As of June 30, 2021, and June 30, 2020, tht► 111.1 rii•CA investments in cotromercial paper were rated A-1 by Standard & Poor's (-S&P') and P-1 by Mead 's Investors Service ("M dy's:'). The District's investments in U.S. Agency obligations that do not carry the explicit guarantee of the U.S. Government all carry a rating assigned by S&P of AA+ or higher. Money market investments are rifted as AAAm and Aaa•mf by S&P and Moody's, respectively. Concentration of Credit Risk The District's investment polio places no limit o17the amount the District may invest in any one issuer with respect to collateralized time and demand deposits, US. Treasury obligations ons are not limited. US, Agency obligations and government -sponsored enterprises are limited to % 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 3[}i'1; of the portfolio, and commercial paper and hackers' acceptances are limited to 25% each, with no more than 5% of the total portfolio invested inany one issuer. The following table lists investments in issuers that represent 5% or more of total investments at. either • IMe 30, 2021 or June 30, 2020: issuer Percent Of Totol Inventrrienta 1021 4 1 Treasury Naelk 52.1.4.3 2 F_r3 '+. rill 1 -Irvine Loran In 1a_;i L€F_3 [Wend Feu rm Credit FurnlinN Corp 11F_7 11.0 R&M Hume !Ain Brink D a gu L € ute y_7 7.7 Federal No -indium Mori 13e A t mtiuel 1_4 7.5 Tennessee V&BBe AmrcitnatLvit aLe G THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Stam 'menu (Continued) Fair Value Measurement and Application The District categorizes its fair value measw'ements within the fair value hierarchy established by generally accepted accounting principles pursuant to GASP Statement No, 72, Fair Value Meusuremeni and ApplicatioN,. The hierarchy is based on the- valuation inputs used to measure the fair value of the amt.- Level I inputs are rquotvd prices in aaive markets for identical assets; Level 2 inputs are,, significant ditha'r' IShsc,]`4able inputs: Level inputs are significant unobservable inputs, The District has the following recurring fair value measurements as of June ao, 202/, and June 30, 2020: • Money Market Mutual Funds of $20.0 million trod $196 mill i, respeidively, RAC v .l d 1,2sAng .Market Approach to measuring -ing fair value paces that considers relevant information generated by market transaautions involving identical or similar .assets or groups of ta.sr #s. (Level 2 inputs) • U.S. Treasury and Agency Obligations of $538.6 million and $511.3 million, respectively, are valued using a market approach to measuring kw. i. v:11..0.. prim; that considers relevant information generated by market transactions. involving identical or similar assets or groups of assets, (Level 2 imp1]r:;l • Commercial Paper of $46.1 million and $30.6 million, respectively, is valued using a market approach to measuring fair value prices that considers relevant information generated by market transactions 'involving identical or Similar ass is or grroup of assets_ (1.evel inputs) See Notes lfl aid 17 for information regarding the eas.l and n en,tR hems by the Fiduciary Pension Trust Fund. 3 Notes Receivable The District has a note receivable with Missouri American Wa.ter Company (M A I") for its portion of the capital costs related to the Lower Meramec Wastewater Treatment Plant. The original loan established in fiscal year 200 bears interest at 4.35%, while the two loans added during fiscal year 2013 bear interest at 4.50% nd 3,52%, The current portion of this note is included in the Unrestricted Other receivables line on the Statements of Net Position. The note receivable will mature in fiscal year 2033. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes ttr Finaneiai Statements (Continued) At June 30, 2021. future payments are as follows 2024 2ces 2032-2033 Le , h[ i.tnC e-eprraraii!tt}u tiiret edt USA Kan Etoctfrivab6r Cinai fnoiion ias Statement to Net Pcmatton: Current - 01111.1 recoivab1 ; i ureent - Nolen roe en -table Total NotetiRmtivabki At June 30, 2020, future payments were as follh ws: 1 2033 2025 26064X* 2/J31-2(03 Lc Armount, raprtxcmtine mnterevit $ 1,1E4, 1.1440696 1164.a 1,1 61.6% 544,C443 5,773, 4179 1, 1J'01I.1 2,_854.72.1 $ JU.4PO, 724 S 16. 'T 9-6 1.71x02 S 107.•11c .7." $ 1.154,41116 1,1 64,E 1.1E4,686 1..1541,+9 6.77:1,41'9 1 14,+130, t4® 3.323,520 Total Notes'Rmouivatik $ 'I 1,096,049 Elnaidirtemtino in Staten -runt DE Net Positmnn: rrrttie - h h' r tx+ v b1 Nurhcurngie Ncrt4m rut egtroblr Total r tKeb Ri4.1eivabl 7291 S 11.4156. '!1 The District also had a note receivable due to its participation in the Contractor Loan Fund, a consortium of loc11lorganizations desiring to pool bank loan -. Pr-ivate investment, And new market tax credits to provide access to capital for N.1inozity and Women.owned Business Enterprise companies that are €ertifi.edthrough a City of t. I ui t agency_ i (ic1 2020, the Coritractor Loan Fund eiotkiortiurn elected to transfer the existing loans and future responsibility to a stucco 4;or entity. The District's remaining cash balance in the Contractor Loan Fund d of $123,112 orris Conveconveyed to the successor entity in fiscal 2021. Pit June 30, 2021 and 2020! MOD`s not receivable related to the Contractor Loon Fund was $0 for both fiscal years. THE METROPOLITAN Te LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 4. Capital Assets The following is i summary- of capital assets changes for the fiscal years ended June 30, 2021 and 2020: edoigi a nY 6etrr *gee' Ruud Cann/maim in paagrs TaaLi rapi!nt nl€!a'eP119t bring ditunrritiWill Capital u beirt depreciate& ar�a'Iru iib n r1 cliffrowil plank PY,I Nuipre,L•nr erakkriturtk and owrui*s^; IKpet Genttral plant and LjyuiRama Total capita !tapa4 Ong depreciated Leak. ikeealarulnaell deprx%rint een Trr.+ntmrrt and drfp ll plant rand temp -meal Cdtlittion Prtd inienpne piAnk !itparanl Tined and o[IL,II rn4.n Taal net umLalneLd depeecintiuni nhkept..km.1,P;.'hi itacifilia, TUrt pL� Capital ■rrrt+ n,zt tang .37pr .intod: latnd Tend r3p1t11.1 Kuala not !wing gl.pkmalli r,al {'tSpdA41 Dia941=*.1X,1 pr L .Atiiu'I Tivoitev r,t and chaplain I plunk ■1MI egLiIpmlurr Cutkrtiun end parcrpieg pleat ureteral piing and r eptiprnnne Tema earipilni au, „rr, tarinig 4kipragh441441 l.eaaF riu n Inil d ,ilrpr,vsiakollra Tnr,rtrn,au tmil +le..pilen1 Diem* 4 tqJijaincni, {nillierbat nod pllinrang plant Gritty -id -plena find 4-quilana L 'hotel ttresnlikeldenek Likeprrrnntinn Toted r pibnl uw-Neti.hiint debtsrartsd, rirt Total l'.alklkal Assatet Balikeier plumeaa, Baaka1. Debi iar Ih h .aw„w 307 gni 4 'ap;l:lli. ff 1, dab 4' a $ 79,Stif,aaa I,o1'_6►z521} I;fa3T (118,542,3 25) 1.1 .4 ,4at1. 1.,085.25:1,558 alik1' .54!3 (11tkEei3,3 ) 1.273,662,78t 1,43, 1+0,644 .4.501).2,1i,1130 a, L L7;15i (35,691097) 4143,111,1 4$11944141,M1 , ctifil"rbi kW/MOM ti61,491 CM 741 ,w i a y�'a1K91. 33n2 fviry,'l._ la 9'iM}lSti11,, r479�• l I,fl Fi �I., L+m4..r'i Ijl!W'�i 1 1.x&12 4,150i.:140 i�e_�EI&'e .•]v+JI '.-., 629,4i1 L L!1 S'1_i1> dl,1-l','t,wt,11 2-4111,7 !ir' ,P1-17.1, 1!, I1 ' : ' J,1 R. fi2,l.s,,s0 s t,41-0,442,435 nalanea June N1,116111, a l 27.1,5-4-i $ W543.. 32 L,d:Wii• 1Ulkitll. °.l!k're A!k A lt lama 1.,IOryh.lFlrb M,293,914 A akeruae Odell len.. June 311L 1; ,ati i;ia�a l 1.411:1.c1241,$ D a.,/7t,11 Li 1,i,ki7a,7Il! 41, $2.2.M.3) 1_I },*K442 2,7431, 4&-i k 22-5, P4128/ 41,247,740 2,114,542,05S febAktU-lie 4.0.1 $3,1 2, 1,+14111 1 ,b4R, i 17 I, i2.L121101%3 +L+i]L1.11454 _ tin 477141 40%3741/18 Ok MAIM 1#?.,a 7$dj 2786.1)76) [1617, #3,91:10 2,tll}I 2.711,E 115r5.i75,5 LR!,7Li 1I a : 42f1.811 043,7 ;, i1 I J,M7,aIHI, ket Page 42 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 5 Property Tax On or before Ober 1 of each year. the District levies ad valorem taxes on all taxable tangible property, real n.nd personal, sonal, within ii boundaries, based on assessed valuations established by the City of St. Louis and St, Louis County ASSCSSCHrS, Taxes levied are used for stormwater operations, maintenance, and construction, Taxee. are recorded as non -operating revenues }ind recognixed, net of estimated refunds and estimated uncolketible amounts, in the period for which that taxes are levied. L -i psi rty tax bilbi ire typically tnaik€l in 0a0bc.r. They, become delinquent. and represent a lien on the related property if not paid by December 1.- rill property taxes are billed and collected by the City of St. Louis and St. Louis County Collectors of Revenue and are remitted to the District monthly. In fiscal years 2021 and 2[.20, the District recorded revenue from property taxes in the amount t of $43,624,302, and $35,439,441, respectively. 3' la 43 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Conlin bred) 6. Log -Team Liabilit. e$ The following is .a summary of changes in the Districts ]w .tern liabilities for the year ended Jura. 30, 2021! lilauda Lad Note•r L'rrlalrc Wiahr Irr IhtLi+o $tai &atom It; t& tsar 7897 :iddIiLnno Jl.mlrsemnia I AL 110U,DX. men Alois* I 1.110. 1110 LI,i3lh 11 51011 hies h4+ 1il.8s. SiVi#6,+111Q 54, IATil* MAIEVESIO 1146, 4V".a.I P1#satallsavr. 711 MOM u41 &ata+a164.1 Aas tR"Q 1A13 1 Hssr.4. Rrr.ar.waiUti ST 45w 7:71,1:4 'H aarratPr 1157'1: It %didi t 14444.1411$knerfei4e Augut4 tlrrav [rl.....r..�rn. Ikiioiltitte 101170.100 F Wear L'alloaco. rand! ant Iirtekagrikanrc Nalardrrtnn Roan u• llt9+ja rw.0 . 10,gm anmr KIM* Pfl I ril aAr. g000i itiwo+t++l.1+a .:+I,N,+•+ 4 I4.++a,rs7. =raLr,.11]: pit $1.4"1¢47774.175 Ada 11nanuraia.lpat r. Jra17.1 Jurrarrl T,iil 1k..iri. and ?It.le,n Poittfir C'srn.nt IMarttasa a# 11on/at anal Mabry 1ary ✓16111 'Jtr7.Al'rrrner ikrriI. Find "knot M.vehlr 'raw milli"... r4 N+w-. IRA , &tr. Ides I'arai rrr IJthilrrl 'hi E l 431'011 I.ah i Iur Drprnd arilAIM Mid Fbpa . Lai/11111 amine.adpixdais.:rn mal■ d`. arrlrrrral.rl ails tar„ Tatoll I F.+i.e+r1a1.airaaiµ F:slirmY. 1,03.0011 - del — 4a 73 I 11 050161,1 C.1I 1,12. 014 11 1404.01.7*. Juno pl. 26'91 I KS,tN 1 J X11 ,lry iziu 4t1 ASSuate laa I MaltlX11 441.16110 17#,74451100 111111:5,11@8 211,1171 tu.n.at I°arakm I 6,:7Pu1111, 1 UNION Ann .MID f,44[t*a AlichiCOD 1,7+1 raw 1. sis4ofso U2.1rO I1dr1 Ilatap 2,1510,016 7116,116 s 006,1106 404.0.41 I,llaafici8 Lai SOD t'1T, 1L4a0.1VIU VIA We 111,1146 A11;111]76 1117G7,Qf1+i,a19 311, 1.47.X16 1IAltr P11:-11 1 47.167.111 11 04.11114.011 4 11trkenLail - 1 rr.gxS,L ti 1 1 Atlr4,f,1 1 1.71&517 1 r} 01.111.111:j91! dt1ll;sti 44 81,31:,11 *1_100.1t2 1117,414 $ k 117 „,..1, I 1061.- 1S I I. N9:11:116211 C,itr.ur Far taan I L'nnlpnaaasa•d paste ricval a bamaaul aap.1raa Glad :1S+r.uaAl F41x.aa.:o-. Ni 4'urir;. 174pa••LIa and.Yrr.uI.d fapmara To 41 1opr1e4a mug Aitrre,dl lhaLo. now t[.r1,9e1 1.aar:PIT PF6. 111N I 1 I1, L 11,11 A I 1711.1711 1 11411. IA I 111, 440,7 45 Paie 44 AefEk THE METROPOLITAN T. LOUIS SEWER DISTRICT Note S to Fin noiai Si'a 'm tit$ (Cowin &-d) The follow -its is a summary of changes in the Diaries long-term liabilities for the year. ended June 30, 2020; Med. wed NEW 114,mblirt Yremli,iiriilrii Syitrm l44IU ? Eiorriwr FIr41,I.m I 2 ,1J+1FLi,t.}.N 4 •177.1JCPD.Crfili 5J`_SG41.( 14.,R4 M1.030 12-111{10)74r6 11.4 n.111.0 1 141.731.1 311, 12-1,11111,X0 1$4?,4 14:1.00 13 0111,-0430 :i is t1m 1110.1 UISPrNp I glivialliAto 144;33SP3li -17E,L715,$?1F 3119 , ;L311,034i Ackllirlaat %%irmr tnihnt uel F'iLlkilee wind Iiii ntillluii s4i! I'il4'1t31616inaur rr ie. S P r!01lly6 1.7 722 ±3.1 tai .4811 54,1. au Acts I 111'\1$1° F"i}Y1iil.liriri lain ll:t! I i IKi 1viC1 tihiiltjy° 1 mute SulYafJituaA I1Sk4wf, ur llow1 i nit Rst+4i5i3IR 14214E Frelpice9N *Immrn IYgpai:mrn 1 d Mound likrwm.r ri i ICle1 3+4,3119,91311. .030 x.211 ra+3'3 iaxiikeoth $11J0L 2.0ce 14_1n1.117$4 4204 /41, 2_101.11119Pil' II 1,610.,644= I 3•Fstii4f'Ja,iss• C1t543.5141,rt4 pr thitli_De OFrl, ,,:.iiy '.I'drI' 11.1.Hriff1 Mykormi Prtti•+hIn C4aribtniL lias%r rnyAbl, No1I 'utlriit pi1,I ,fir. lrelpMh7t TEAL BuoJr Firm] NrrLra Ririe -whir 7,444 Piirilini l.:;rliif T,3Irl aril; 1i 1111}IFP4110.11 Arid tlra rui•tl Eapemsilii l+,iuilfdlslr+ur mi,01 0:4 lekootto,rsrini Yarl 11pnslits us.i Area-usr1 1=..Rip nwri .Bahl once Ample 30, Non I. Currant d"4.a_UOli I __ l;1"i31.0.11 =10, 4 n .vicusisn 101'M1,C1441' 41.52,1JJilll 1.MA410 i111,0a111141 1.31/11,0411. 113611$0.141R1 ti_larIiE } !"11,8*5 iM.HI I�SS 112-.24O fifM1 SAN X4.10 5;2;1.3CJJ1W1 •111:15,0241 14 60.1.1011 1J515Ate' 561.41+0 111•.L04JJpap ii.5.77,41111111 It1IA p4' iM-5.1.KR31 2.7°55.1.111n 110.5, 151,#10,01411 10.$ ciINHI 2dIbPPri Ow i1414il I{,r,'.,}."a1!0111 700,170 EL scrojo 11 IIX NUNMI 1,UN11S1.i11, 11•t10,1I -- — 11,141fI.41Df 11 1', I kkitc21ii1 1,1 ? d ,]1114} 4 ."11114 1411101m 4118,+4 •N 11,7'95_0001 73_.1112N IIki2,010 II,7ft 1, ;71.,40liF170 1,2 138,010 12.,M.091.1 4'1,044:0110! 1._315, 1 ,+24.4iN11 13 .I?CPO 4J`0Q„OW 1114Lugo 1 1z,J4 1,I4U f 60,0 LN 4`1:N17,LNuiI d1.P-14.1)10 $ 1.0600. — L i1; 5. 101 - - 14,541.112 1 r. 11,41.11 431 $ '[Arlo,, j4t;17.1 r 4 ,,1111I.T47 I $11I.I03:xH 1 s 1 I Noah. 1 1119.1:11 ".1).77.117 I Sti. :+1 1111.111117) 4 7. 10172.11 I 7I13',7i,1 I 131.151154.213U 11.101,? 1-4 1 l OPEIIIMMEs IMrw 1- n r1;1iiy I IMI J4'L7,illi5:f111 1 1. Li./114.91 I 1 57. 7141 111:1 I J:i1d. I ii I 154.' 111!1,4!7411 I fet21111 I InIT 1-1I LI.S19.Li2 L3 Ism di TAIL' I X57:_0115 1 2.:1116J16:1 Uteri -in !NM 1!1.11 I4.:ikfl *II ibirtMPet+il L Cement DI1Min41a maid AT i:'i rinI FiSLFra'irWi, Witt L'iiireins 1prjri ( r[iiil Urkl E.peirlifi Togpif INr—pt.lisp ii 1 Atoll ueJl 1A ortn1#-e I 2 1't 111 AMY 7,1I2 $ W,0'T. iari Page 45 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Voter Approved Bond Authorizations The Districthas received voter authorization for revenue bonds on the dates and in the amounts presented below.. These runde were sought to enable the District to comply with federal and state clean water requirements, Only new bond issuances count against the authorizations while none of the refunding issuances nces count against them. Prom the total voter authorization of $3,120,000,000, $852,12(3,796 2,12(3,7.1% has not teen issued as of June ;#0,, 2021. Voter Authorized Dow y`Auih tion Amount FebaLt3rye 2OlO4 Aiwth I. ;Jt1.0-.?U].2, Apt sl `."[116' April 20121 Total $ X9,12[F,{104,ObU Wastewater System Senit r Refunding Revenue Bonds Payable, Direct Placement In March 2020, the District entered into a fo a:rd-delivery direct purchase agreement to issue 5,M20 of Wastewater System Senior Refunding Revenue .Bonds Series 2021C rSeries 2021C) which closed in May 2021 to coincide with the call date of the outstanding Seriee 2011B bonds. Thew rie 1 2021C bundle 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 ii premium of $1,751352, and $4,025,780 in eXCeAK debt service reserves the District contributed were used to refund ail the remaining outstanding Series 2011B bonds and the $2,532 interest accrued thereon. The related liability for the Series 201 1 bonds refunded were removed from the District's financial statements in fiscal 2021., This direct t placement refunding decreased total debt s rvi a payments over the next 11 years by w7,527,111, resulting in mim1 gnomic gain (difference between the present values of the debt service re.g7Iirvoirents on the old and new debt adjusted for the additional cash paid) of $2..553.2-11. These Series 20210 senior direct placement Wade have interest raffles of 5,00% and re payable bi in semiannual installments at varying amounts through May 1, 2032, 3"ai ti 411 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Statement's (Continued) Principal and interest Requirements on Senior Refunding Revenue Bonds Payable, Direct Placement The ,manual principal a, -rid interest requirements to maturity on direct placement senior refunding revenue bonds payable outstanding as of tune 30, 2021, are as follows: WAllikrwa tRir SyNtd1111 ni r Rvrarb tow nu r- Rands f'u}'aibk Direct Placertreht 2021C ratrxrmr unsJunfi 30, 20:2 2023 202-1 12025 2028 2027-2031 2032 Tgitli i rinripn1 intcrrusi 279%439 281.000 281.000 281,00 28,1.000 ;1_626_000 1.0 17,500 1_196_0Orr Elik,750 5_+7.2U_0ii0 $ $,620,'6#9 Tcroll 279,439 251,000 284.000 281,000 2g1,000 4,942,5 2.094,700 $ A.610,6891 '.ante ater System l vewe hands Payable In December 2020, the District issued $120,000,000 of Wastewater System Senior Revenue Bonds Seri,ttS 2020 ("Series 20201 11, . These rids were issued pursuant to the April 2016 authorization: in this case for the purpose of constructing, repairing, replacing, and equipping new and existing District wastewater facilities and as of June 30, 2021. $6,1,112,703 has been expended. A premium of $37_194,201 was received on the issu anti, of Series 2020B. These Series 2020E st7rli r 13onds have an interest est rate or ,i.O7 and are payable in a em'ianrivall installments at varying amounts through June 1, 2050. in December 2019, the District issued $52,130;000 of Wastewater System Senior RC Lrtue Bonds Series 20198 il`Series 2019B1. . Thts-e 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. Ail funds from this issuance have be-P-ra Xi ennti{:1al. A premium of $1.2,059.977 was received on the issuance of Series 2U1913. Thest Series 2019E senior bonds have an interest: rate ;ft 5,0% and firs payable m semin it u 41 installments at vanting amounts through May 1, 2049. Page 117 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) In December beu 2019, the District issued $276,260,000 of Taxable Wastewater System Senior Refunding Revenue Bonds Series 201)C ("Series 2019C".). These bonds were issued to partially advanee refund the Series 2012A lands maturing in fiscal years 2040 through 2042 totaling $103,120„000, the Series 20128 bonds maturing in fiscal years 2028 through 20.4 totaling $83,925,000 (excludes $940,000 of the May 2031 principal payment due). the Series 201,3131)0nds maturing in fis al years 2031 and 2032, 2016 through 2038, and 2040 through 2043 totaling $67,985,000 and the Series 201513 lsond.s maturing in fiscal years 2014 through 2015 totaling 18,4(1{],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, Aecurit esi were deposited in an irrevocable trust with an escrow agent. to provide for the future deht service payments defined above on the Series 2012A. Series 201211, Series 2013B and Series 201.5B bonds. . The sum of the $300,519,.160 depoeited into escrow and the earnings on the U.S. government securities will fund. the $273,430.000 advanced refunded principal payments on their call dat.PR. (May 1, 2022 for Series 2012A and Series 201213, May 1. 2023 for :Tries 201313 and May 1., 2025 for Series 2015N and the interest thereon. Interest. only payments of $13,671,500 were made from the escrow account in fiscal year 2021, lI $273,430.000 debt defea sect in substance to be paid from the escrow account remains outstanding as of June 30, `?021. As a result of plaeing the. ce h. with e; agent in a trust, }rie ; 21)12A, S rios 201213, Series 201313, and Series 201513 bonds were partially defetrsed and the related liability for those bonds were removed from the District's financial statements in fiscal year 2020. This advance refunding decreased total debt service payments over the next 25 years by $ 8.7,1,40 2 resulting in an economic Fein (difference between the present values of the debt rvice requirements on the old and new debtadjusted for the additional cash paid) of 842.6 '91,31'7. These Seriea 2019C senior bonds have interest mates ranging from L824% to 3.259% and are payable in semiannual installments at varying amounts through May 1, 2045. In 1)ecember 2017, th I listrict issued $316,175,000 of Wastewater System Senior Revenue Bonds Series '1017A ("Series 2017A").. These bonds were issued for two purposes $11 6,175,000 woe issued to partially advance mfund thy :series 20'1111 bonds maturing in fiscal years 2022 through 20'29 totaling $':23,345,tl00, the Series 2012A bonds maturing in Neal years 2023 through 2032 totaling $50.060,000 (excludes $240,000 of the May 2030 principal payment due), the Series 20138 bonds maturing in fiscal years. 2024 through 2029 totaling 6.385,000, and the Series 20158 bonds maturing in fiscal ors 2026 through 202) totaling $25.970,000.. The remaining $200,000,000 was issued for the purpose of .ri ryAtrU `tin . rfla i r ti g.. rtjpl-,1r4 n ;, o-i kid equipping new and altiating District isttrrict Page dB THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Finencial Statements (Continued) wastewater facilities, All fends from this iasuance have been expended. Approximately $47,5'00,000 was issued pursuant to the June 2012 authorization end 52,5oo,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 2017k These Series 2017A senior bonds have interest rates ranging from 1,0% to 5.{1% and are payable in semiannual installments at var ring amounts through May 1, 2047. The Series A refunding net proceeds or $141,343,662 (including' a premium of $25„967,878 and additional proceeds of $1,220 and after payments of X428,433 underwriting fees and $371,953 in leauance emits) 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 Seri 201 x B, Series 2012A, Series 2013B, and Series 2015B bonds, The sun of the $142,277.9g7 deposited into escrow and the, earrnin 's tin the U,S, government securities will fund the $125,760„000 advanced refunded principal payments on their cull dates (May 1, 2021 for Series 2011B. May 1. 2022 for Series 20114., May 1, 2023 for Series. 2013B. and L iee., 1, 2025 for Series 2015B) and the interest thereon, .Lnterest payments. of $6.0] 7.025 Fula principal ti rn nt , ref $23.:1-15,4)00 were made from the escrow aunt in ii.scel year 2021. 01 the 8125,760,00E1 debt defeased in substance to be paid from the escrow account. $102.415,000 remains outstanding as of June 30, 2021. Au a rer ult of placing, the ceeh with en escrow agent in a trust, Series 20113, Series 2012A, Series 2013% and Series 2015B bends were partielly defe ueed and the releted for theee bomb; wee removed from the District's financial statements in fiscal 2018. This advance refunding decreased total debt service payments over the next 1.4 year, by $12.623,385, resulting in an economic gain (difference between the present values of the debt service requirements on the old.a.nd new debt adjusted for the additional caisli paid) of $9,481,147. In December 2016, the District issued 1,50,000.0000 of Wastewater System Senior Revenue Bands Series 2013{. (-Series 2016C). These bonds were issued pursuant to the June 21312 aut:hori a t iu re in this ease for the purpose of constructio.u, repairing, repiacing. arid equipping new and exi 91 n a' District wastewater facilities. Ail funds from this issuance have been expended. .A premium of $17,678.054 was received on the issuance of Series 20160, 'theft Sertee 20160 ee ier 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 2{J15, the District issued $22'3,855 000 of Wastewater System Senior Revenue Bowie Series 201513 (.Series 2015B'). These aese bonds were issued for two purposes:.1 ,:3,8.5 .O J was issued to advance refund the Series 2008C and Series 200 A beinde and $150,0 00„000 was issued pursuant to the June 2012 rare 49 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) authorization; in this ca ie for the purpose ofconstrueting, repairing, r hieing. and equipping new and existing District wastewater facilities, All funds from this issuance have been expended, These Series 201513 senior bonds have interest rates ranging from 3.09.1 to 5.0% and are payable in semiannual installments at varying amounts through May 1.2O45; however. in December 2017. there. was an advance. refunding of the non -refunding Series 20168 bonds for the fiscal years 2026 through 2029 totaling $25,970,000. As a result of this advance refunding} Series 2016B 1 onds are considcared partially defeased, See, the explanation for Series 2017A above for further information. In December 2019, there was a taxable adva.nve refunding of the Serif s 2015B bonds for the fiscal years 2044 through 20'45 totaling $18,400.000. As a result of this advance refunding, Series 2015E bonds are considered partially defeased. See the explanation for Series 2019C above for further information. Theories 2015E 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 05 in issuance costs) and th 94 . 5b 7 in exem debt eerviee reserves the Dir met contributed were used to purchase U.S. government securities. These securities were deposited in an irrevocable trust with erg EfFiCrilW agent to provide for all future debt service payments on the .Series 2006C and Series 2008A bonds. ,Ali principal and interest payments on the advance refunded Series 20 C and Series 2008A bonds have been paid from escrow and no arn.ounte remain outstanding nding on then bonds, As a result of placing the cash with an escrow agent in a trust, Series 2006C and Series. 2008A bonds vivre defeased and the liability for those bends were removed from the District's rict's financial statements in fiscal 2016. The original $60.000,000 Series 2006C bonds were issued pursuantto the February 2004 authorization and the original $30,000,000 .Serves 2008A bends were issued pursuant to the August 2008 authorization_ This refunding decreased total debt servii.w payments over the neat 22 Years by . 33,.0112,176, resulting in r' econornir gain (difference between the present values of the debt service requirements on the old and new debt adjusted for tadd.itionel cash paid) of $14,54.4,g66_ In December 2013, the District issued $1,50,000,000 of Wastewater System Senior Revenue Bonds Series 2013B ''Series 2013131. These bonds were issued pm rsttEmt to the June '2012 authorization, in this case for the purpose of constructing, repairnng, replacing. axed equipping new and ex'yting District Wasrewttter All funds from this issuance a 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' 013B bonds for the fiscal veers 2024 through 2029 totaling S26.38.5,000, As a result of this advance refunding, Series 20113B bends are considered partially defused_ See the explanation for Series 2017A above for further information, In December 2019, there wao a taxable 3":ge p THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) advance refunding of the Series 2O1:3B holds for nine years within a span of 12 years from 20.E1 through 2043 totaling $67,985,000. As a result of this advance refunding, Series 2013B bonds are considered partial/5, defeased, See the explanation for Series 2019C above for further information, In November 2012, the District issued $141,730,000 cif Wastewater System Senior Refunding Bonds Series 2012B (-Series 2012B"). These bonds were issued to advance refund the Series 2004A bonds maturing in final years 2015 and thereafter_ These Series 2012B senior bonds have interest rates ranging from 1,3% to 5.M" and are pa►la,l le in gitkniannual installments at varying amounts through. May 1. 204. The Series 201213's net proceeds of $169,991,298 {including .a premium of $29,813,118 and after pay melts of $761,593 in underwriting fees and $590,247 in issuance costs) were used to purchase U.S.. government securities. These securities we -re deposited in an irrevocable trust with an escrow agent to provide for all future debt :service payment:, on the bonds All principal and interest payments on the advance refunded Series 2004A bonds have been paid from escrow and no amounts rerriain outstanding on these bonds. As a result of placing the cash with .an escrow agent in a trust, Series 24)04A bonds were partially defrayed and the Liability for those bands related to a dates a fter May 1, 2014, were removed from the District's financial statements in fiscal 2013. The original. 1175,000,000 Series 2004A bonds were issued pursuant to the February 2004 authorization, This refunding decreased total debt sktrvice payments over the next 22 years by $28,601,199, 01,199, resulting in an economic gain (difference between the present. values, of the debt .service requirements cents on the .old and ne w debt) of $22,439,375. .. In December 2019, there was a taxable advance refunding of the Series 2012B bonds for the f seal years 2028 through 20 41 totaling $83,925,000 (exclud.es $940000 of the May 2031 principal payment due). As a result of this advance refunding, Series 2012B bonds are considered partially defe-ased. See the explanation for Series, 2019C above for further inform In August 2012, the Di. trict 'issued $225,000„000 of Wastewater System Senior Revenue Bonds Series 2012A (Series r012A"). These bonds were issued pursuant to the June 2012 authorization: in this ease for the purpose of constructing, repairing, replacing. and equipping new and a iating District wastewater (acilitie All funds from this issuance a have been expended, These Series 2012A senior bonds have interest t rates ranging ; cirri 2,5% to ,3 and are payable in semiannual installments at varying amounts through May 1, 2042; however, in December 2017, there was an advance refunding of &ries 2012A bonds for the fiscal ,pars 2023 through 20.32 totaling $50,060,000 000 (excludes $240,000 of the May 203-0 principal payment due). AB a result of this advance refunding, Series 2012A bonds are considered partially defeased. See the explanation for Series 2017.A above for further information, in December 2019, there was a taxable advance refunding of the Series 2012A bands for the fiscal years 2040 through 2042 totaling Paige 5 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) $103,120!000. As a result of this advance refunding, Series 2012A bonds are considered partially defeased. See the explanation for Series 20190 above for further information_ In December 2011, the District trict issued $52,250,000 of Wastewater System Senior Revenue Bonds Series 201113 C eries 2011 in 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 horns have interest rates ganging from 3.0% to &.O% and are payable in semiannual installments at varying amounts through May 1, 20:i2-. however, in December 2017, there vas an advance refunding of the Series 201 ] 13.beads 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„395M00. See the explanation for Series 2021C above for further infor'mati rn. tt. a result of the advance; refunding and direct placement, Series 2011B bonds are considered fully clefeased. In January 2010, the District issued $85.000.000 of Taxable Wastewater System Senior Revenue Bonds (Build America Bonds — Direct Pay) aeries 2010B ("Series 201011'1. These bands were issued pursuant to the Aca.g�ust 2008 .authorization; ia-si this case for the purpose of constructing, repairing, replacing, and equipping new and exiat-ing .DigtZ'.iat watewator facilities. An funds fromt iii 'salaam!! have hen expended. These Series 2010B senior fonds have an interest rate of 5.9% and are payable in semiannual installments atvarying amounts through May 1, 203. As Build America Monde under The American Recovery and: Reinvestment Act (" RA-) of 2009, the District receives a subsidy payment from the Federal government equal to aas percentage of the is tet-e. t paid, In fiscal years' 011 and prior the rate was 35%. Beginning with refund payments processed on March 1, 2013, and annually y beginning inin on October 1, 2013, the IRS has; adjusted this rate as part of the sequestration. In fiscal year 2021 the subsidy percentage was 33.0% while for 2020 the subsidy percentage was 32.9%,. in ii cal year 2022 the subsidy percentage is expected to be 310%. The revenge bonds do riot constitute a: legal debt or liability for than District, the State of Missouri, or for any political subdivision thereof and do not constitute indebtedness within the meaning of shy eon titutional or statutory debt limitation or restriction. Revenue derived from the operations of the Wastewater System is pledged for the retirement of the outstanding Wastewater System Senior Revenue Bonds listed above, Under the pro -visions of the bondindenturea. the District covenants to establish rates for the services of the Wastewater System sufficient Fags 52, THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) to fund operations. n itr twin reserves. acrd pt vide revenues to apply principal and interest on these hands. The issuance of the revenue bands 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 Gonda (State Revolving Funds Programs) Series 2008M3 13 ("Series 2008A/B1. The Series 2008r bonds provided finds to issue loans. to 14 Missouri political subdivisions that used the funds to finance nce water pollutioncontrol and drinking water projects. A portion n of the pree of the Series 008N8 bonds issued by the Authori t.v were used to purchase subordinate to Participant Revenue lints ("Participant Bonds") authorized and issued by the District from the February 2004 authorization in the aggregate principal amount of $4O,tliX},tltit}, the proceeds of which were used for constructing, repai:ring.., and equipping new and existing wastewster facilities. An funds from this issuance have been expended. The District's Series 2O0 B Participant Bonds orig=inally bad interest rates ranging from 4.0% to 5,7' but effective April 1, 2021, the District's intent rate on all outstanding principal was modified to 0,83% % but are gill payable in semiannual installments ts at varying 'in amounts through January 1. 2029. In November 2006. the Authority authorized, and issued $22,105,000 of State Revolving Funds Programs Series 200BB series 2006B"). The Series 2006B bonds provided funds to issue loans to seven n Missouri a ri p Iiti `al subdivisions that used the funds to finance water pollution control and drinking water projects. A portion of the proceeds. of the Series 2008B 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. Allfunds from this issuance have been expended. The District's Series 2006E Participant BonBon& have interest rates ranging from 4.0% to 5.0% and arc payable in semiannual installments at varying amounts through July I, 2027. In May 21)013, the Authority authorized and issued $87,505,000 of State Revolving Funds Programs Series 2006A ("Series 2006A1. The Sries 2006.E bonds provided funds to issue loans to 13 Missouri political subdivisions thatused the funds to. THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Firm nciaal Statements (Continued) Tina a water pollution control and drinking water projects. A potion of the proceeds of the Series 2,006A bonds issued by, the ..Akuthority were used to purchase Aubordinate Participant Bonds authorized and issued by the Districtfrom the February 2004 4 authorization in the aggregate principal a.mount of $42,715,000, the proceeds of which were used for constructing, repairing, and equipping new and (Mil -ail -1.g wastewater ter facilities. All fonds from this issuance r nce have been expended. The District's Series 2006A Participant Bonds have interest rates ranging. from l_5% to 4.5% and are payable in semiannual installments at varying amounts. through July 1, 2026. In May 2005. the Authority authorised and issued $53.060,000 of State Revolving Funds Programs Series 2005A ("Series. 2005A1. The Series 2005A bonds provided funds to issue loans to 10 Missouri political subdivisions and one Delis uri non- profit corporation than were used to finance water panties ucinr.r.ol and drinking water projects_ A portion of the proceeds of the . ritni 2005 helm tiRued by the Authority were used to purchase subordinate Participant Bonds authorized and issued by the District from the Fcbruaary 2004 authorization in the aggregate principal amount of ,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 Pax tieip ,nt Tends have interest rates ranging from 3.0% to 5.0% and are payable in semiannual installments. at varying amounts through July I, 2026, In May 2004, the Authority authorized and issued $179,,780,000 of State .Revolvin Funds Programs Series 2004B ("Series, 2004.13"). The Series 2004B bids provided funds to issue loans to seven Missouri political subdivisions that were used to finance water pollution control pr je ta. A portion ofthe pros de of the Series 2004B bonds issued by the Authority were used to purchase subordinate Participant Bonds authorized and k4sUied by thi. District from the February 2004 authorissation in the aggregate principal amount of i61,28O.0 , the proceeds of which were used to finance the Districtsthree water pollution control construction projects outlined in the agreement, All run& from this is9uance have been expended. The District's Series 20)4B F o e rr i i.• i pant Bonds have interest rates ranging from 2,0% to 5., and are payable :.e°rolannU al immt..allmente at varying amounts through January 1. 2027. The Series 200413. 2)05A, 2006A, 200613, and 200&Nl3 bonds do not constitute a legal deter or liability for the District, the State of Missouri, or for any political subdivision r he ^tof and do not constitute indebted neRs within the meaning of any constitutional or statutory debt limitation or restriction, The issuance of the Series 2004B, 200SA 2006A, 2006B, and 200 E hon l and the Sere 2009A.. 2010A. 20100, 2011A, 2013A, 2015A. 2016A, 20168, 201813, 2019A, 2020A, 2021A, and 2021B direct llama (pages .56.65) do not obligate the District to levy any foram of Page 51 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) t 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 In connection with the District's issuance of the Participant Bonds, which were purehaaed with the proceeds -eds or the series 2()04B, 2005A, 2006A, ` OO B, goad 008A1B bonds, the District participates in the State Revolving Loan Program establishedby the Missouri Department of Natural Re ources CDNR ). Monies from federal capitalization grants and state matching funs an. used to land n bond reserve account for the participants. As the District incurred approved capital expenditures, the UNR reimbursed the District for the expenditures from the hand proceeds account and deposited in e bond reserve account, in the District's name, an additional 60% of the expenditure :7cmount for the Series 2,004B bands and 70% for the Stories 2005A, 2006A, and 200613 bends, Fir the Serifs 200810 bonds, 70% or the entire anticipated borrowed amount was deposited into this bond reserve account it the beginning of the loan versus &EL 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 or the District's Participant Bonds, the trustee tran9f rs from this 11..ond reserve account Lo thy master trustee account an amount equal to i% of the principal payment for the Series 2004B 4B bonds And 70% for the Swigs 20055, 2006A, 2040t3B and 20080VB bonds, In accordance with the District's Master Band 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' principal and interest due on art ooninr hondH and at least i1:5 ei` the current year's principal and interest due on all bonds. On June 10.2021 and 020, the District et was in compliance with this, covenant. Pak,* sr3 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Principal and Interest Requirements on Revenue Bonds Pay -able The annual principal and interest requirements to maturity on revenue bonds payable outstanding as of Juste 30, 2021, nri. follows: W oiti.waC r$ys,trm Rry utelnidm. P yohior W'itar Pollution Control and Drinking Water lieveartam &midis Payaibi Yesin e i dLng June 19, 24)22 2023 "_024 2026 2026 2037-204 041 2042-2041 2047-2060 'rani PrLrutipal lr ta at 44.0%,(1 CH) $ 5,6, x'52,11,22 4 5,9 00.90D 55.0 4.1 rip 49,'9 . 54,443 , 4-8.795,000 51.683.990 4IA 9 UJ4I1) 49,8.36,979 240,315.000 iii 2I 444 $4 270.054), 4605111,04 2 335,055.000 102,6 05,928 213.465,060 37„85,11. 49,550,1100 5.119.:50 717,M,912 Total 100,84 • $2 110„584,1 70 1 0413433,1186 l OO,A 78,990 100_326,1)79 4 S9,l' 0.,34 4;13,16'9.042 4.37. x60 92 2511.750,111 54,6 1 2401 S 2.14;3.020.912 Water infrastructure Finance and Innovation Act F1A) Series 2018A In December 2018, the Environmental Protection Agency (EPA") issued to the District an amount totaling $47,722,204 for the purpose of constructing the Deer Creek Sanitary Tunnel Pump Station and Sanitary Sewers Project. The principal and interest on the bends are expected to be paid from. future wastewater revenues and the bonds are issued from the April 2011 authorization, The Series 2018A bonds are not subordinated. The District's interest rate is 3.ti and is payable in semiannual installments at varying amounts through May 1, :2053, Principal and Interest Requirements on Water Infrastructure Finance and Innovation Act (WIFIA) Series 2018A As the District incurs approved capital expenditures. the EPA reimburses the District for the expenditures from, the bond proceeds account. The District repays the loan at ark interest rater of .€ t3% based on the amount that ha:sbeen borrowed, Ali of June 30, 2021, the onIstanding Tema balance wa$ $261.00. 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 ofMissouri Direct Loan Program issued to the District an amount totaling $40.201,000 for the purpose of improving, renovating, repairing, replacing, and x quipping the District's Wastewater System. The l ":aka` THE METROPOLITAN T. LOUIS SEWER DISTRICT Notaa to Financial Statements (Cowin tied) principal and interest on the bonds are expected to be paid from future astews.t revenues and the bonds are issued from the April 2016 authorization. `I'hc District's interest rate is 0.78% and is payable in semiannr ai i.n7~.r d f itit•stt a varying amounts through Januar,7 Z., 2041. Principal and Interest Requirements on State of i.ssouri Direct an Series 2021B As the District incurs approved capital expenditures, this l }.N 1l r, imburee the District for the expenditures from the bond proceeds account. The Districtrepays the l }tri at an interest rate of 0.78% based on the amount that has been borrowed, As of June 30, 2021. the outstanding loan balance was $7.26,0,558. The payment requirements to maturity will be determined after the debt is fully issued. State of Missouri Direct. Loan Series 2021A. In January 2021. the State of M isoou ri Direct Loan Program is raed. to the District an amount totaling $63,101,000 for the purpose of constructing the Lower Mer:• tmec 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 }.78% end is .payable in .emiannual installments at varying amounts through July 1, 2044. Principal cipal and Interest Requirements on. State of Missourii Direct Loan Series 2021A A; the District incurs approved capital expenditure the DNR imburses the District for the expenditures from the bond proceeds account. The District repays the loan atan interest rate of 0.78%based on the amount that has been borrowed. As of June 30. 2021. the outstanding loan balance was $5.333,065, The payment requirements to maturity will be determined after the debt is fully issued. State of Missouri. Direct, Loan Series 2020A In September 2020, the State of Missouri Direct Lean Program issued to this District an amount totaling $22,000,000 for the purpose of constructing the Deer Creek Tunnel Pump Stations, The principal and interest en the bonds are expected to be paid from future wastewater revenues arid the t orsi k. ;ire issued from the April 2016 authorization. The District's interest rate is 1.. 841 s .end is payable in ser+>7itaarnnua l irtai llrranets at varying' rrn a>ant$ throtign .Julys t, 211 1 :1._ Page 57 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Principal and Interest Requirements on State of Misso ri, Direct Loan Series 2020A As the District incurs' approved capital expenditures.,the DNR reimburees the District for the expenditures from the bond proceeds account. The District repays the loan at an interest rate of 0 &}% bayed onthe e.niount that hah been. borrowed, As of June 30, 2021, the outstanding loan balance was $9.982,418. The payment requirements to maturity will be determined after the debt is fully issued.. State of Missouri Direct Loan Series 2019. In September 2Q19-, the State of Missouri Direct Loan Progrem issued to the District an .amount totaling $23,952,000 for the purpose of improving, renovating, repairing, replacing and equipping the- District's Wastewater Seam. The principal and interest on the bonds are expected to be paid from fu.t.a T waet Sw,.ter 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 Distriot 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 O,9#% ham on the amount that has. been borrowed, As of June 30, 2021. the outstanding loan balance was $22,011,686, The payment requirements to maturity will be determined after the debt is f .11y issued, State of Missouri Direct. Loan Series .2018E to December 201, the State of Missouri Direct Loan Program issued to the District an amount totaling $25,267,000 for the purpose of improving, renovating, r . , replacing and equipping the District's Wastewater Syelent The principal and interest. on the bonds are expected to be paid from future wastewater revenues and the bowie le ere issued from the April 2016 authorization. The District's interest rate is 1,38 and is payable insemiannual installments at varying amounts through January 1, 2041. Principal and Interest Requirements on State of Missouri Direct Loan Series 2018B As the District incurs approved capital expenditures, the DNR reimburses the District for the expenditures front the bond pis account. The District repays the loan at an interest rate of 1.38% ba il on the amount that hits been borrowed. As or June 30, 2021, the euitstan.ding loan balance was $24,,302,912. The payment regairemente to mai':i il.y •ill be determined after the.debt ie fay i e.k,ed, 3"age .Fri THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements { ontinue:4? State of Missouri Direct Loan Series 20168 In December 016', the State of Missouri Direct Loan Program issued to the District an amount totaiing $7,500.000 for thepurpose of improving, renovating, repairing, replacing and equipping the District's Wastewater vstem_ The principal and interest on the bonds are expected to be pail from future a 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 installmentsat varying amounts through tluly 1, 2037. Principal and Interest Requirements on. State of Missouri i Direct Loan Series 20168 As the District incurred approved capital expenditures, the DNR reianbursed the District for the expenditures from the bond proceeds account, All funds have been drawn on this loan_ Theannual principal and interest requirements to maturity on the State of Missouri Direct Loan Series 201hB outstanding as of June 30, 2021, areas follow a State ROM ix iuri F brit Latin : ories 21i151# Years ending &Ink. 30, Principal 4 nierest Total 2022 9 3,358,000 a 7 ,'1M $ 4,138, 9 2023 3,;a 22.of]ti 73904 4,171,662 2024 .3,,5,07,104 6'96,256 4,205,2;56 2022 3 31 4 955.944 4,238,9.4-1 2.26 SALON 632,,71 4,27;i,r14 2027.20:11 f g,540..0110, 2,3B1,,l132 21,921,382 2032 .21, 1 21,,7€8,01110 1.160,080 16,08.0 2034-2038 7.003.d 04 84.342 7,087,342 Total: 7.102,590 72,952,560 State of Missouri Direct Loan Series 2016A In December 2016, the State of Missouri Direct t 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 arid 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. 3"aa> a :ail THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Sta mtnt8 (Contflrbred) Priricipal arid Interest t Requirements on State of Missouri Direct Loan Series .2016,E As the District incurred (approved capital expenditures. the ONR reimbursed the Districtfor 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 1.0811 Series 2016A outstanding i.nding .s of June 30, 2021, areas follows: State of Mi apauri i)irr. t Ian Sr rims 2016. Year ending June 20, Principal 2}'22 022 204 2025 2423 2027-2031 2032-2030. 2027 899.000 919.1)00 929.000 959 } 51334000 5829.000 1:242.000 L70014000 Intere9t Total 201,230 90.492 15'9.394 158,066 156,492. ,599.736 27Ci;012 111,196 1,109,4K2 1,11r ,394 1,127,0606 1.131,402 5,832,736 'a 6,099,91.2 14253,196 ].,7r6+a(F $ 18;7'77,706 State of Missouri Direct Loan Series 2015A. In August 20/5, the State of Missouri Direct Loan Program issued to the District can amount totaling $75.000,000 for the purpose of improving, renovating,„ repairing, replacing and equipping the District's Wastewater water System_ The principal and interest on the bonds are expected to he paid from fut u a wastvemter revenues and the bonds were issued from the June 2012 authorization. The Distrii.;t`.s interefit rate is L2% and is payable in semiannual installments at varying amount: through January 1, 20:35. Principal and Interest Requirer;ents on State of Missouri Direct Loan Series 2 ii A As the District incurred ;tpp -weed capital .l expenditures. the DNE reimbursed the District for the expenditure:.. from the band proceeds aoc umt, All funds have been di'aMen 011 t1ti loan. 1 ",fags f) THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) The annual prim• ipal and interest requirements to trl ltur_ity on the State of Missouri Direct Loan Series 2016A outstanding as of June 30.2021* areas follows: State of Mfulsourl Direct Loan Sierie6 2fi0'15A Yv irx 4.etd Eng ..lune 5f1, I riniipail. Intere xl TWA 2022 L 3,.559.000 S 703.502 I. 4,}97,6 12 20'23 3.074_000 13E14.546 i.83i1,54113 2024 2.782_0001 1119,455 .4.:i#+41..15r) 21126 :L1452.000 5a;7,25.1 1,425,2 1.1 2026 3,943.000 526.01.1. •x..169.0.1.5 2027-2021 21,,2 7,000 1,379,091 23.3 16,65A. 2022.20 18.016 00 626,202 1'11,•6-12,302 Tel 68_#1'8 41 $ 5,d2.i,7J;n S G4,170,706 Mate of Missouri Direct Loan Series 2013A In October 2013, the State of Ildissouri Direct. Lean Program issued to the District an amount totaling 52,000.000 for the pu.rpose of improving, renovating, repairing,. replacing and equipping the District's Wastewater System. The principal and interest oxy 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 1)it tri.t`e interest rate on all outstanding in principal AR rra dlifiO4. to O.83%, from 1.6% but is still payable in semiannual installments at, varying amounts through July I. 2034_ Principaland Interest Requirements on State of Missouri Direct 1-011/1 Series 201M As the District incurred approved capital expenditures. the TAR reimbursed the District for the expenditures from the bond proceeds account. All farads have been drawn on this loan. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r diei Statements (Continued) The annual principal and interest requirements to maturiry era. the State of Missouri Direct Loan Series 201 aA outstanding as of June 40, 2021, * are as follows: Slate of Mkura! flirvet Loan Sierie6 0413.E Yvo'rx 4.etd Ling o1une 3111, 141-invipt 1. Iettere xl Ta14111 2022 $ 2.427.00 S M5;1592 4 2,812,592 2023 2,490.000 295,7150 2,783,7.5,8 2024 2,555,000 271.,2614. 2,ti29,El: 3 2025 2.#122.001 252,61/ 2,1175,6 1 L 2026 24 91,000 231,707 2,922 707 2027-2021 I 1,,6.40,000 809;48►7 15,319,487 2022-2085 085 Ii, askosO i s0.I22 11,5aa,I. 2 Total $ 38,679,000 $ 2„442,0,16 X11,121.016 State of Missouri Direct Loan Series 2011A, in Noveniher 2011, the State of Missouri Direct Loan Program issued to the District an 9111101111t totaling $39,769,300 for the purpose of improving, renovating, repairing, replacing mid equipping the District's Wastewater System. The principal and interest on the bonds are expected to be paid. from future wastewater rew.hies trir3 the. bonds were issued from the August 2008 authorization. The District's interest rite is L5% and is payable in semiannual installments at Vanin through Jormary I, 2634, Principal and Interest Requires rents on State of Missouri Direct Loan Series 2011A As the District incurred approved capital expenditures, the DNR reimbursed the i .sari t for the expenditr.trvs 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 M1hso'Iri Direct Loan Series 2011A outstanding as of June 30, 2021, are Ets Fellows; State or1Idrataariir-i @aract, Loan Serried 20I1A 'd trrH en,dirkR June 3(1, 24)22 2021 -,024 20525 2026 2027-2031 2032.2094 Total Principal IC In ,Rarrr4 $ 1,811-1.000 S 427,768 1.982_000 898,989 1,962,000 309,403 2.032.000 139,068 2,0 3.000 308,0,0 11.242,000E 1,04£x,448 1.1501,;100 2[]4,4114 2/4_611,:#1111. $ :13_419..M12. Total I'Age 62 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r ei*i Statements (Continued) State of Missouri Direct Loan Series 2010C in December 2010, the State of Missouri Direct Loan Program issued to the District an amount t totaling 37,000, 0 for the purpose of improving, renovating, repairing., replacing and equipping the District's WastewaterSystem: The principal and interest, on the bonds are expected to be paid from ()attire wastewater revenues and the bonds were issued from the August 2008 k1Ur horization. The District's interest rate is L7% and is payable in semiannual installments at varying amounts through J. trn. lry 1, 2031. Principal and Interest t Requirements on State or 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 loaan. The annual principal and interest requirements to maturity on the State of Missouri Direct LonSeries- 2010C outstanding as of June 30, 2021, areas fellows: Stoic or Mi±xuuri CJi i;ct I,+nu Ill Sr riles 2 11 D( Years ending Ju:ne 31D., Principal 24) 22 $ 1„,8901.00(.1. 2O2I 1,93g_000. 2024 1.989,. 000 24)23 2041,01)0 2025 2094.000 2?Di`i•°?din] It le rih 1 ntp mat Total $ 343,172 $ 2,2a ,112 311.4.109 2,250M011 279,609 2,2644,H01) 2,1 'r.5 6 28,71 0376 S2301341 ] 1,H30,43S ' ILO ; 21,262,00 11 ],2.17,286 $ 23, 184.2# State of Missouri Direct Loan Series 2010A In January y 010, the State of Missouri's Direct Loan Program - ARRA issued . the District an amount totaling $7.980.700 for the construction. improvement, ent, renovation, repair, replacement and equipping of its Wastewater System, under the authority of and in 11111 +: r II( y vHi i r1!1. i•t.S Charter ("Plan") and the bonds were issued from the Augta t "2,111).S ;i,at horization. The Di Aria's interest rate is 1.5% and is payable in semiannual ii -1;iliments at varying amounts through. July 1, 2031. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes tr Financial Statements (Continued) Principal and Interest Requirements on State of Missouri, Direct Loan Series 2010 As the District incurred approved capital expenditures. the . NR reimbursed the District for the expenditures from the bond proceeds account. All funds have been drawn on this lciari_ The annual principal and interest requirements to maturity on the State of 301issouri Direct lalrn Series 2010A outstanding as ofJune 30, 2021, areas fellows: S#atr.. {rtMisNsnw4 D rret Lean Se rtra W OA Yea ers lIng 1t.ne 311, Principal Lae root Tom 2022 104Ft:UU a i,ki 1.1 $ 112,414 2023 4t2,91JCF 81.79-9 1+9,139-9 2024 4 2L30 553$5? •Iil;.,9`7 2025 4290'[1 19.391 479,191 2026 4 89.500. 42,13$'t .481.408 2Oi17-2O i 2,329.800 II41.4110 2.444.000 2052 24 1XX 1..3 22 2111,1122 Total 4,0929OO S 3,93,911 5,070M I State of Missouri Direct. Loan S ries 2009A to October 2009, the ONE. loaned $23,00-0,000 to the District. The State of Missouri Direct Loan Series 2009A rate bears interest at ai rate of 1.5% per annum and is. payable through January 1. 2030. The purpose of this note wa.s to finance the designing, constructing, improving, renovating, repairing, replacing arnddequipping of now are existing stwer facilities within thy. 1}istrict, Tli principal *old interoa on the note are expected to be paid from future wastewater revenues and the note was, issued from the Auguat 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 ex pen ditktres from Lite bona procoOri : neentirlf . All funds. have been drawn on this loan. Page 611 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Fir'iaaiii iaal Statements (Continued) The annul principal and interc t l-equ.ire e t tart purity on the State of Missouri Direct Loon Series 2009A outstanding as of June 30, 2021, are as follows: State of Missouri Direct Loam Seriel 2(X11A Year end Lnig dune 30, 2023 2024 2025 2026 2027-2030 Tital. Printipm1 Intel-0Kr. 1j:3:1_401 3 4i6I! _ i4JI.1 r 5 a, l I. 19. 0 6,5,88,200 11.tt5 I _TOO 8 151,x,"7 :13,491 14,911g, 196,O2O Tamil 1,372,9113 1,3 ,175 1,203,401 1,4x14,1 40 I ,I I ,11.9 861,360 6 12,74 3,1M0 In accordance with the 'Direct Loan Series 20O A. 2010A. 2010C. 2011A. 2013A. 2015A, 2016A, 2(016B, 201813, 20t9A, 2020A, 2021A, and 2021B ordinances, the Distr-i 's annual net operating revenue, from wastewater activities, are defined in the agreement.. coupled with investments earnings must be at least 115% of the current year's principal and interest st due on all bonds, At June 30, 2021 and 2020, the District was in compliance with this covenant, Wastewater System Cash and Investments The following accounts have been established in accordance with lend ordinances and financing agreements that require receipts generated from operations he 8Cgregated and certain reserve FAe o rot be established; Revenue Fund The Revenue Fund will be used for the purpctse of depositing wastewater and tormwaat,cr operating revenues, noviding funds to pay for expenses related to the operation and maintenance of the District, and fulfilling inking Fund requirements in accordance with the bond ordinances. Sinking Fund The bond ordinances provide for deposits te} and the use of monies in the Sinking Fund to he used, far Cho si v purpose of principal ,and interest payments on the bonds. Sufficient monies ha]l be paid in periodic installme lts from the Revenue Frund, Debt Service Find The Debt Service Fund shall be used by the Trustee for the sole purpose of paying the principal and interest an the ke nds, as and when the stake I r;ame due, Page 65 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Debt Service Reserve Fund After initial deposit of the amount required pursuant to the bond ordinances and financing agreements of the Series 2030B, 201113. 201 A, 20128 and 20138 binds, monies in the Debt Service Reserve Fund shall he disbursed d nd expended by the District solely for the payment of the principal and interest on the bonds and notes. to the extent of any def'ieienc;;' its the Debt Service Funs for 14, «4h. purpose. The District may disburse and expend monies from the Debt Service Reserve Fund for Hui h purpose immediately, AA of June 30, 2021,. n d 2020, c sslt Et rid iraves t ii Fnta in the Debt Service Reserve Fund totaled $21,045,454 and $25,000,722, respectively. Series 2iJ16B. VgrilS issued without a debt service aeserve fund requirement and at that time $8,9415,557 in excess debt service reserves along with part of the Series 2015.8 proceeds were used to advance refund Series 2006C and Series bonds, Series 2016C WAS issued vvithout a debt service reserve fund requirement. Series 2017A was issued without a debt service reserve fund requirementand at that time $934,325 in excess, debt service reserves along with pert of the Series 2017A proceeds were used to partially advance refund Series 2011B, Series 2012A, Series 20138 and Series, 2015B. Series2018A was issued without a debt service reserve fund requirement_ Series 20198 was issued without a debt service reserve fund requirement. Series 2019C was issued without a debt service reserve fund requirement and at that time $2'6,045,.142 in excess debt Serviee reserves sprig with the Series. 2019C proceeds were used to partially advance refund Series 2012A. Series 201213. Series 2013B and Series 20158. Series 20208 was issued without a debt service reserve fund requirement. Series 2021C was issued without a debt service reserve fund requirement and at that time $4,025.7g0 iii execs debtwrvi reserves along with the SerieSi 2 J21 C proceeds were used in a current refunding of Series 201 1 IL Page 66 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial State ents (Continued) Special Partkkiportf Rand Resew Account For the Series 2004B, 2005A, 2008A, 2000, and 200V13 bonds, the DNR deposited into the Special Participant Bond Reserve Account. amounts hi accordance with the bond ordinances, s, which shall be disbursed .and expensed by the District sdlel) for the payment of the principal and interest on the Participant Emma to the extent of any deficiency in the Sinking Fund for such pure. At June 30., 2021 and 202(, cash .and investments in the Special Participant Bond Reserve Account held on behalf of the District totaled d ,05[ .1K9 and $67,598„530, respectively. Monies in this accountare not considered to be District funds. However, interest earnings on this account are used fy. the District to reduceinterest payments on the bonds outstanding. Jeri[ QZ and !s :IJIFtiIWWFA Fund t1 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 mimics have been deposited into this account at. June 30, 2021, Project Fund The Project Funds for all band issci*irtces 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, 20118, 2012A, 2012B and 2013B bonds, shall he deposited into the Project Fund. At June 30.2021 and 2020, cash and investments in the Project Funds totaled $92.415.533 and $00 .765,125. respectively. Rebate Fund The bond ordinances providi2 for the creation of a MI; a Fund into which shall b deposited hiuch amounts as are required to be cieposiiv si 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; provider , however, env funds remaining in the Rebate Fund after redemption and payment of all bonds and payment or any rehatablc arbitrage amount, or provision having been made therefore, shall he remitted to the District. At June 30, 2021 and 2020, cash and investments in the Rebate Fund totaled $228,34.9 arid $229,909, res tively, page 67 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statement's (Continued) A mini8fr rtG Fee .Fund The Administrative Fee Fund will be used, for the payment of the Trustees fees arid other administrative fees pursuant to the note agreement. The Trustee has the ability to immedi atel:kv withdraw the fee amounts when due. Monies held in. this ac c'rffi ct. aliatl7 Pledged Revenues The llistYiri pIt,dges revenues to ensure the repayment of all outstanding anding revenue bonds. These bonds' proceeds are used for the District's, capital improvement and replacement program ,and their 3— p yrnenrt corner from., and is collateralized by, the District's wastewater revenues. These revenues are pledged through 2050 at an approximate amount of $2.2 billion, The proportion of future pledged revenues to future wastewater revenues is not estimable as annualtotal revenues fluctuate. Principal and interestpaid out during fiscal year 2021 was $1.19,3 millionwith. pledged revenues of $252.0 million_ This provided a coverage ratio of 2,1 and pleded revenues represented 59.0% of all net operating revenues. Direct Borrowings a,n.d. Diirect. ,Plaeernents The District did not have any bonds and notes from direct borrowings in the fiscal years ending June 30. 2021 and 2020. As stated previously_ the District had direct placement bonds of$5a6 0,000 and $0 in the fiscal years ending June 30.2021 and 200* respectively. In addition, the District had no unused lines of credit and had no as .plodged as collateral fork rids from direct pla,cententa in the tl$cal year* ending June 30, 2021 and 2020. The District has authorized the 180,L1.81.71Cie of Wastewater System Senior Refunding Revenue Bonds, Direct Placement Series 2022A, Series 2023.A and Series 2025A to be hewed en May ,"3, 2022, May 1. 2023, and May 1, 2025, respectively, +. tivel, , The par amountof the bonds will total $196,445,000 and the bonds will be purchased by Morgan Stanley Municipal Funding, Inc_ pursuant to the Arrrended and Restated Forward Delivery Bond d Purchase Agreement dated March 23, 2020. Upon issuance, the District plans to use the proceeds of the bonds to refund a portion of the outstanding 'N7f akitewater System Senior Revenue Bonds Series 20128, Series 2013B, and Series 2015B. Wastewater System Senior Refunding Revenue Bonds. I3im 'r Placement Series 2021A named Series 2021C due to the taming or their as: ieAtice, was included in the original authorization, and was issued on May 3, 0-2 I. , and th{,. .1.620,000 proceeds were used to refund the outstanding - Wastewater SYS1.i ,r, ;senior Revenue Bonds Series 20111. See the explanation. for Series 2021C above for further information. nage THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) The Amended and Restated. Forward Delivery' Rind Parehase Agreement fer the Series 2022A„. Series 2023A, and Series. 2O25A Bonds contains terms regarding everts of de fuilt between elcaitiinl and settlement with finance -related consequences that are classified as (1) an event of default under other debt instruments. i` repudiation of the District's obligation under the Agreement, () dissolution, (4) bankruptcy. (5) consolidation or merger into another entity resulting in materially weaker creditworthiness, (6) misrepresentation, (7) si rli ficant rating downgrade or to withdrawal or () refusal or inability of bond counsel to deliver an opinion that the interest on the bnds is exelidable from r�k inc me for federal income tai purposepureoses under- that Fntenrmil 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 pur:haser, a make -whole termination payment. 7. Pension Plan General Information About the Pension Nan Pension Plan. Dtsrripfion_ The Metropolitan St. Louis Sewer District Employees` Pension Plan (Tension 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 fall -time employees. of the .District eommenei g 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 Metropolit.kin St. Loui& .fixer District Defined Contribution Plan CDC Plan') and/or The Metropolitan St_ Louis ;ewer lli lrict Deferred C'oxepeneation Plan are] Trust, Ch.trrktnt empla'ym..9 with less than ten years of service on January 1, 2011, could also voluntarily elect to t.ranefcr 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 begiening ; r a FF:5 if the member has c! ,m pleted rive year. of emplornerit. Ordinanoe Nob 10664 provides for unreduced retirement benefits to any member whoa) combined age a rrd terra of setwice is equal to 75. 3"ange 6i THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Effective August 1, 2004, Ordinance No, 11781 amended the Peat.iorw Plan to change the benefit formula to 1.7% of final average earnings plus 0.4% of final average earnings that are in exec -se of covered ea.rnirrg;i multiplied by the period of year and months of credited service not to ex ced 35 years without including accrued pick leave_ For vested employees- who retireor die while in active service, cic leave is paid out at 1.25% per year of service multiplied by the amount of the unused a.ccrued sick leave remaining at the employee's current rate of pay, up to a maximum of $50,000. Mro. 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 a ccord,an. ce with any one or 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 wouldhave been payable on the normal retirement date plus a special annual retirement benefit provided h , the accumulated value, at 4% per annum interest, of the monthly benefit that would have beenrived prior to the patponed retirementdate or hl the benefit determined as of the postponed retirement date under the normal formula. Effective August 27, 2011, Ordinance No. 18288 amended the Pension Plan to include the following: "Upon termination or complete, discontinuance f. contributions under the Pension Plan, the rights of all Members to benefits accrued to the date of kaareh terimination or distominuanee shall by traon-10rfeit.ah1o, tope 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 firstbecome eligikalc for raga !viva:are prograX'ito du' to di ahality in order to reoeive, ar contint a rya receive, retiree medical benefits under the Pension Plan and to clarify that any retiree medical bene-fwte under the Pension :Plan will be secondary to Medicare d �abilit r benefits in accordance with the Medicare secondary pay -or rules. Effective February 144 2019, Ordinance No, 15110 amended the Pension Plan to update the language. of Pension Plan benefits for death of a member after retirementand 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 1.514 err payment or equal monthly inHt lltnent5. ]&g 70 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Seat tnents (Continued) The Penaimn lm.n reports financial data nn a calendar ye - r basis and issues. a publicly available financial report that includes audited f n ncia.l statements and required supplementary information, That report is available on the District's website at rasdprojectclear.org and may be obttiined by writing: The Metropolitan St_ Louis Sewer District.., 2360 Market Street, St, Louis, MO 63103-2565. Employees ' tiered by Benefit Terms, At December 31, 2020, and 2019. the financial reporting period of the Pension Plan, the following employees were covered by the benefit seams: As of Dervinber31. Increase ,202,0 Wig (DecrtA$o) .dive plan members. 51I 493 (43) Retirees and beneficiaries currently receiving "berberit6 .rte 771 29 Term i5natedt me mtc,rs L tt .heed tri rmeive btmieritri 172 180 (8) Total 142'2 1,444 {) Required Employer Cortiri xutions. The District's employees do not contribute to the pension Plan. Ordinance establishing the P nsicin Plan pa/wide 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 s}f 12.771,52 i OM $13,062,014 x l ciitt.g'certa.in professional lies paid by the District, were made to the Pension Plan during the ]District's fiscal yeatint Junes. 0, 2021, nti °2020, respectively, TheThewe contributions were triode inaccordance with actuarially determiraed contribution requirements based on actuarial valuations perforrnt d at December 31, 20207 and 2019, res,p e tivcly. Net Pension Liability The net pension liability was measured d as cif Deeember 31, 2020, and 2019 And the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that dot , Page 71 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Statements (Con/blued) A'uw is ' s tonptio x . The total penaion liability in the Decenhor 31, 2020, and 2019 actuarial valuations were determined using the followingactuarial assumptions, applied to 911 periodS included in the measurement Inflation 2.50 percent Alrrry Tnrreba9eax 4.28 percent, twerage. including inflation Investment Rate of Return 01.75 percent. not of pen ion plan investir en9 expens.e. inckurling inflation for ears enrka Dimi,rnher :;M, 2020 and 2019 Effective December 31, 2020. and December 31. 019. for current employees. healthy retirees, disabled. retirees and contingent survivors, mortality rates were bgawd on the Puh-2010 General Amount -Weighted Mortality "Tables, male and female rates, with generational projection from 2010 using MP•2 20 and MP -2019 improvement sonde (improvement scale updates published annually), respectively. The actuarial assumptions are based on prior and current year experiences., Long -Term Expected fiat of Return, The lang.term expected rate of returnis determined by adding expected nt ation to expected long-term real return6 and reflecting expected volatility and correlation. The capital market assumptions at December 31, 2020, and. 2019 are as follows: December # 1_2020 Asset Class Long -Term E t d Arithmetic Target Red Rate: Allocation of Return Largo Cap us amity Domestic Core bonds Core "Plus" Lands Real Estate Developed International Equity Small Cap US Equity I axe=d Income Emerging Mearkcts Equity 25.0% 14. 1;3.0% 12.Cro 12.0% 10.0% 8. Total 9.01.0% 4.2% 01% 5. 4,7% Page 72 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Slat/whams (Continuo* December 31. 20 19 Asset. Class Target Allocation 1 n -Tenn expected, Arithmetic Real Rate of Return Dorruttstic nxeil 1non me 27.0% Large Cap US Equity 25.01/4 +2% fuv'i°tr!poi] I311ernatit r it Equity 1;4,0% 5,01.6 .Res] state 12.0% 3.4 SE i kJ]] Cap US Equity 10,0% 1 - Global Pixt d 1 rtmorale 8,0% 2.9% Emerging Markets Equity 6.0% 5.h3°L, Total 100.0% ''* Expected to earn Ice.r. khan a flaiictrt Discount Rciu,. T& discount rate used to measure the total pension liability at Detember 31. 2020, and 2019, was 1.75 percent, Thy Pension Plan's fiduciary net position was projected to be available to make all projected future bnefit payments f current active and inactive ernployees, Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. in lk.10 If!f9°N[43n il.inhility Jnr Luse YrrLr Ending tievillArr 31, 2020 1nrrr ege (Dirori l w Chan,,gox i !,I'ei Perwfrxo Lt ha1at - Total Pension Plan Fiduciary Net Pension Liability Ni-t Polition l,inkk+ li ' PI! t6, l e;l (bp Balances as of lineally,/ 31, 2(119. $ 315.11,M.5,R1 $ 296,2012647 $ 57,792,913 Changes for the year: '.rvili't t 4,85.12., '4 4,832,)25 Intrtrrt Zi 5 1. 11,5131= E1Tect of econotaichienuncraphic gaingaina or ,Emilie, (9,72,1,709 — 1,0, r ki,748) [Bert of naaurnpl.alnmm ckuiruges or inputs — iionert. 19,273,097) 119,211,107) — !mpb yer contribution)! 13,394565 Ca:M.56M Net itnNektar t :octanes sk.tigi1.5169 *F1•81•PO-19 Ekdancem as of December 31, AY t $ ,,4017,8672 $ ; 112, 1 $ 29, 'l .t' ti 3'a c 72 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial St , n'ttnts (Continued) Changes Lib Net )pension Liability for the Year EndingDeccmltfnr 31, 20t!} Increase (ikerrreaael. Tot 1 POnidoi Nen Ficittraar Net Prnaien Liability ?fast PlisaiLirra Chengia in Net Peakion Liability tall list Bobtorm at. ut Deeenilwr 31, 2018 l; 334,93,7,313 $ 200,4600570 11 74,390,737 7 C Tii Rg f¢r the year; r+rko cost 4,902,41174 — .'1,914,4174 Interest `}' ,£ 18,11 a — 22,110.4.17 Effect of econcordridemographic gains or La (1,966,040) — (1,966,040 Effect et SFAlimptiona changes or intnato 11,910,M1 — 11,91[1,13 RegIFd pmwmLsttil 4ik,&&g, (1 i. > , up E ep' wet cusatibLII6M — 14/25.402 (12,12C.-16.1) Not love .wsmeat income 41,543.4199 41,-5.13,4901 I.i balit 40-00 13a181ei 419 of 1)e epaver 33, 201' $ 3.153.1405.550 1 293,202,6-17 u7,7tr2,91,3 n iifk ty of the f'ac'et Pension Liability to Changes in the iliscouni Rate, The following presents the net pension liability calculated using the %.75 percent discount rate for December 31. 2020, and December 31, 2419,. 6 Well as what the District's net pension liability would be if it were calculated using a discount rate that a'A 1 -percentage -point lower *r t-perc t-ag -1 cint higher than the current rate for each year;. December 31, 2020 1% Current. 1% Decrease Discount slate increase Net Pension $ tit1,381,719 S 29,455,179 i3,62-3,2a1j December 31, 2019 1% C1trre1 t 1% Decrease Discount Rate increase (5.76%) (6.75110 (7.75%) Net PensF®n Liability 97, ,x377 $ 573132,913 $ 24,254,790 Pension Plat Fi uciir_y' Net f sitie . Fiduciary net position is the fair value of all plan assets. Net pension I i, t h i l ity is the plan's total pension liability list* its fiduciary net position„ i.e. (hr..- plan's .unfunded accrued liability. 1' e 7`11 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Pension Expense and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions. For the years ended June 30, 2021, anti 2020, the District Igo.gored pension expense of $5,192,722 and $17,831,390, respectively, after accounting for all deferred outflows and inflows or repurees The District reported pension -related deferred outflows of resources and deferred inflows of resources from the following l3ources: June SIX 20J51I 4 fl rred r}ererred auPe i3 _ 1)e-fs.r?td Dererrevl [}walJin + f Ia rlwwte iaf r'nrb+mp 4r ra+vy ItrAivithrimm. Rc+r�Bur■ r I' +'r.. -+ 6rq. 4nggrl e+xpeetil F awl iast'i tiig y I . �'yy+���� y— n:l�a;..4: fi #• — #t :I.I fib. l•'.luLllMk6 fir inin tript trni' Aa+.f, _m al,liddM,• [t' Not rlUt7ar,aif h+t •ry rt prcjpcaetl raud eeuak mny� 1T, 21' 4, L MAW C rtia itions mute suiretegrretYt xnOarur rsen .duce , ,1 1 VI -1_135i null $Al 4741,4ihb _ 2.1.67).;a4 $ 75.,1L73,E $. 7,149,E En the years ending June 30, 2021, and 2020, amounts currently reported as deferred outflows, of resources, $6,X06,1 arid. $7,133,164, respeetively. l.3.lated to the District's contributions subsequent to the measurement date will be recognized as a reduction the net pension liability 1n the ,years' ended Thane :5W, 2022, and 2021, respectively, Other amounts reported as deferred glf resources and deferred nw : of resources related to pensions will be recognized in pension expense as follows; Net Deferrals of RV UM rc'eS Year ended June !SO,: '022 $ (3.7 7,."i } 2 j2 (;I�,41i`2�'.g5 i7) 2).7 (8, k.32„308) `5 (3, .87 � 1 .70L l02M Payable to The Pension Plan At June 30, 2021, and 2020, the District did not have outstanding required contributions tO the Pension Ilan, 3' la7.5 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 8 Other Retirement Plans Deferred Compensation Plan and Trust The District offers its employees a deferred compensation plan created in. accordance with Internal Revenue Code Section 457. The Iidetropelitan St.. Louis Sewer [district Deferred Compensation Plan and Trust CDF available to all District cmpleyees, permits them to defer a portion of their Salnr ; up to Internal lie! nue Code limits. Tl i- District di-arr; not contribute to the DF E'l;ci7 except where e mandated by the internal Revenue Service to compensate E'i i rl icip/fIrElt8 for lost deferral contributions. The deferred compensation is not Ev:i.i bible to employees until terrninat,ion, retirement, death, disability or due to fina;iria ] hardship as. defined by the DF Plan. At June 30, and. 2020, the District had outstanding liabilities owed to the DF Plan of $176,954 and $150,307, respectively, Ttte DF Plan was mended and restated to comply with the Economic rowth and Tax Relief Reconciliation Act of 2001 L" it° . The Act made signihernt changes to Section 457(b) of the Internal Revenue Code of 196, as. previously amended. The D' Plan assets are held in trust for the exclusive benefit of participants and their beneficiaries under Section 1448 of the Small Business Job Protection Act of 1996. As a result, the assets and liabilities of the DF Plan are not included in the accompanying financial statement . 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 SL l cis Sewer District. 2350 Market t to et, St. Louis, MO 6310.3- 2555. 0.3- 555. Defined Contribution Plan The Metropolitan St. Lt uis Sewer District Defined Contribution Plan CDC Plan") was established by the District's Board of Trustees, through Ordinance 1,1180, which became effective ,1:driUrii- 1, 2011, the following full time employees are eligible to participate in t h DC Plan: (i) employees first hired on or rimer 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 provisionsof such Pension Plans and (iii) employees rehired on or after January 1, 2011, who are not eligible to accrue benefits under the Pension Plan. An employee shall )dame a participant in the DC Plan on the first day on which he or she �iC `t�rt77� ;in hoar of oervice for the D3iitrict, THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 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 triembers a5f the DivsaSri{'l' IR(mrril of ° L,. two elected employee members and roar numbers of I }ititriL'I's- management ataaff ain inlet[ r the DC Min_ A committee of the I)s . rice' I.l+ r r°d of Trustees, with the paid of an investment advisor, reviews and evaluates the DC Plan's investment options and the related rates of return on a periodic basis. "Chia. 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 cif 5Etvinga?:, thereby providing a rneaaure o' financial security for such employees and their beneficiaries upon retirement or in the event of death or disability, All ,tsset:, of the DC ,an are the scale property of the DC Planand are not subject to the claims of creditors of the 'District and the assets send liabilities of the DC Plan are not included in the acoampanying financial statements. E mployer Basic Contributions; n; ; Pc r each payroll period. ilia I )i irkt contributes ; i n amountequal to 7% of the covered compensation earned during such period by ee,eh participant entitled to an allocation of ar.uch contribution. Upoti a part: eip: nt's. severance from service, the urnvested amount credited to hi her individual account shall be forfeited and credited to ti mm Employer Basic Contributions account and shall be used to reduce future Employer Bask Contributions. if a participant is rehired cad before incurring two consecutive years break in service, the amount previously forfeited will be motored, l:f rehired air two coi s trtive f break in service, the amounts previously forfeited will not be restored. Employer Matching Contributions; For each payroll period, the Di trice 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, LW 1 Sewer f)iMriet Deferred Compermatim Plata and Tru:it; provided that, be:foreata.x contributions in excess of 4% of the cot.. red compensation.. of the participant for the payrollperiod shall not he mongid,LIA Poem 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 ereditc d tx the participant's Employer Matching Contributions Account shall be fully vested at all times. }age 77 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Sr,t tints (Continued). In no event. .shall the sum of the errm.p I uyi r 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 ifrcreassee in the cost of living; (h) 100% of the participant's wrnpermsation for such year_ The compensation limit referred to in (b) shall not apply to any contribution from. medical benefits after separation from service. The District's contributions to the DC Plan amounted to $2,.816.1.5-7 and $2,483,566 ror the years ended June 30. 2021., and 2020, respectively. Forfeiture: were $ 9,855 r-nd $61,807. for the years ended June 30, 2021, and 2020, respectively, and the balances in the prepaid forfeitures amount as of June 30, 2021, and 2020 were $6,097 and $41,073, respectively, At dune ;30.2021, and. 2020, the District, had outstanding liabilities owed to the IX Plan of $101,147 and $81,163, respectively. Vesting: As of any time before the normal retirement age of a participant, the fir e day of the month coinciding with or next following a person's sixty-fifth birthday and completion of- sixty nwrith$ of continuous SQr-vi (other than upon death or perrnranerrt disability), the vested percentage of the amounts credited to the participant's Employer Basic Contributions account shall he determined in accordance with the fo lowing schedule; Veered .( Noe, Moiith$ € f Forfeitable) C(PinierldiOtial Strviee PerxF ntage less than 12 0% hat keg than 24 24 but lave thaoi 06 40% ,36 hut. Ices than 48 604 but lees than 60 80% 6,0 100% The Metropolitan St. Louis Sewer District Defined Contribution Plan issues a publicly available financial r part that includes audited financial statements and s.u.pplementary information. That report is available on, the District's website at t isdprol tcl ar.nrg .tiid may he ab& rood by writing: The Metropnlium St. Louia Sewer District. 2350 Market. Street, St. Luis., MO 631.03.25555. Page 7EI THE METROPOLITAN ST. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 9, Postempl yment Benefits Other Than Pensions ("OPER") General Information About The OPER .Plan Plan Descripaon. The District's defined benefit OPER plan, The letrerpaiitan St. Tends ewer District Retiree Medical Ceverage Plan ("OPER Plan"),. provides retiree medical coverage for all permanent fufl•tinae employees who retire from the District On or after age 62 with five years of Aervice 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 . Memorandum of Understanding with respect to this Plan modification, The OPER Plan is a single employer defined benefit OPER planadministered by the District. The OPER Plan was established by Ordinance No. 982g and became effective January 1, 1996. Thit5 ordinance his 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 ] .p. 2019. being the most current ordinances covering the [WEB Plan in its entirety, The District offers two medical plan options, a traditional open access plan and a high deductible health plan, and both plan offer wellness ratesfor those employees who qualify, No assets are accumulated in a trustthat meets the criteria ri paragraph 4 of GASB Statemmt No. 75, Accounting and Financial Reporting for Posientployment Benefits Other Than Pension (° GASB Statement Na. 7b"}. Benefits Provided. The OPER 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 sin* employee until the retiree becomes eligible for Medicare at age 65. In the last six months of fiscal year 2021 the monthly amount the District paid towards the retiree's premium was $610.52 for retirees qualifying for the wellness incerrtive (S621.36 for retirees with wellness, qualified sp u,c0. The $610.52 paid by the Districtequates tot 6% of the traditional plan's premium and 93% of the high deductible plan's premium. mium. For retirees not qualifying for Uw wellness incentive, the District paid $567.19 of the premium which equates to 80% for the Li -Alamo' pan and 86% for the high deductible plan. The retiree paid 100% of the spousal, childrenor family premium incremental increases in addition to, the remaining 7=2O% of the retiree's total monthly premium. The OPER Plan also provided life insurance coverage for a very a mall closed group of disabled former employees. Page f THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements (Continued) The monthly premiums for calendar year 2021 plans and coverage tiers are a fol lkws a { i:ovemge Tier Tote] Retiree OPEB Benefit Net Coat Premium F®raid 2y Ala tr ct to Retiree TrmLkIt °nr&I Elan lib WVIllnewai intraltiVe &limo agi.99 $ 1310.52 $ 99. 417 Retiree * SpaUra ],,51€1.36 f_ 1_311 M88.99 Reh r t Chad( re 1,372,31 6I ft 52 761:79 RGat'Ten + Ferenaky 2.093,2 M l,3fr. 1.,171.!lO Trt.ai7 ioru i Rho with Two vrOlocee. imiceritive itt it e 71)&99 N87.1191 1411, Retiree + gootiiie d.,5r1O X7.19 94116 Retiree+Chi]d(renl ],372.31 ti47.10 1 .12 Retiree + Fitt t b 2,041211 667,19 1.626.07 Iligh Dtkuctt Plats %Ali welbsel4 incentive Re'tir'e € 5 t.}i + 610.62 49.16 Retiree Spore 1,ri113.26 ►x21.6 7samo Retiree * elliid(rL) ],2Th 4J 61052 666. tl Rear* r! + P r d y 1,94 7.61 621.3'1 1,226.25 High theiturtible VIKA with au wi.ltates; . ineeritime IturiTer. g59.68 1147.19 92,49 Pet ire,G+'Sponrfa 1,4115.2 5061.1.9 EIM07 Rilintik*, + °C'hi]d(rea 1,276-M N67„19 7114.434 Retiree + Fzentity ],5197111 567r .191' ],280.42 in fiscal year 2020, and inthe first six months of fiscal year 2021, the monthly amount the District paid towards the retiree's premium was $580.25 for retires qualifying for the wellness incentive, The $580.25 paid by the District equates to 5% of the traditional plan's premium and 91% of the high deductible plans premium., For rearlees not qualifying for the we]Ib'tm incentive, the District paid $547.75 of the premium vi hich 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 remEtining 9,20% of the retiree's total monthly, premium The OPEB Plan also provided life insurance coverage,, for o r)- small t" Lu: t d group p f di:itrbl od former employees, l'kige THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*1 St , 'IY11tsnts { ontinae:4? The monthly premiu.mkr for calendar year 2020 plans and coverage tiers are as fol laws; Toth Retiree OPEB Benefit Net Corgi Premium l•ttiiti hk Di9trkl. to. Reiirrr T iilitional I1F!.D with witrig+Riii ti t+ FRi 1iI •': th.ri tt- ' + ii ,ktet Lie,tircu t C'.hil Iren1 RLairee Ti Friu innal 1Nlrirn 'MEI' rir)Yer,ilinces nilPriStive IRi kr'fir. + gl.iPi 1I IRr_t4taa 4 Ch1I•;I4reri) Retev + ertti high Deductible flan with satelint incentive Retire Retiree + Retiree + ChildCrer4 Retiree + Fb sl,w High Ik&•urtible flan with mu wrdlnefar loctrAlivi! Ki tIr;e Retiree + Spew" Retiree + °Childlren) Retie + Family 684.04 6 .2; 104.44 1.46.9.56 5g1..°2 Wald ;1 1.325.27 h.i-5 74,5.02 2.021.5i x.25 ],•it1.2 15611,199 847,11 1 494 I..16 .4k1 1.i -7i ! Milli, L328,27 81.3.16 7i',S2 41:121.811 i.1i1 84 7.76 1,413.78 637,05 W.25 5681,1 I,,387,08 C 1,2W,00 7 x26 04184 1,13E93.84 680.26 1,3 0.Se E1",17.131. 54.7275 SRAl 1 , ara,Oti 847:71; Kam. ai lo23 ,Mil 84'7.76 leittli.,a1 1. .8..1 811.7 1,: r',lil' .00 The ordinance establishing the OPE13. Plan assigned the authority' to establish and. amend Plan benefit; provisions to the District. The contribution requirements of the District and Plan members are established by the District and may be amended by the District. The OPEB Plan does not issue a publicly available report_ Employees Coved by Renefir ermris. At June, 30, 2021 and 2020r the following employees were covered by the benefit terms: Imam employees or Ilientianaries currently ng Wilda partnexlic Aelivominplcayekis .dune Ali, x'21 June $0, 117 1Z2 Total T_i7:t 1,077 Rag 81 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Total OPEB Liability The District's total OPER liability measured a5 of December 31. 2020, and December 31, 2019, was $24,920,628 and $23.164.618. respectively, The District's total OPEB liabihties es for both years were determined based on anactuarial valuation as of Juno 30, 201'. and both were calculated based on the discount rates and actuarial assumptions below and were then projected fonward. to the rrrearaurement dates. There have been no significantchanges between the valuation date of June 30, 2019, and the reporting fiscal year end dates of June 30, 202t, and .June 30, 2020. ,Actuarial As!sumptiorts and Other inputs. The total OPEB liabilities based on the June 30, 2019 actuarial valuation were determined using the following actuarial assumptions and other inputs* applied to all periods included in the measurement, unles otherwise. specified] Ile Latina licalCbrarr shat trend rases Salary e1lerbaite* Retiree's !tare 8f be fit related costs 2.ZO percent 4.90 percent fray 102121. grade. iv decreasing to an urtin nt.e rate at 3.10 percent for 2076 and ''beyond 4.23 percent. average_ hvauding. inflation a. 20, percent arid, Cl2 pent of projected health imam -ant premiums, for retirees depending on plan selected titradttional or l,deduttibielp and wellness tmualiatica,tirn far 2011 rindN120, respectively 112 pe tent far Demembeir 31. 2.744 percent F+ r December 3L 19 The discount rate was based on the 20 Year Bond General Obligation Index. Mortality rates were fused on the Pub -2010 General Amount -Weighted Mortality Tables for Employees, Healthy Retirees, e, is; bl etirees and Contingent. Survivors, male and female rates. with generational projection from 2010 using the MP -2020 stele for the measurement date of December 31, 2020, and using the MP -2019 scale for the measurement date of December 31, 2019. The actuarial assumptions are based on prior and current year ex rences. Me plan has emit had a formal actuarial experience study performed, Page82. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fines dial Sl ,I Invents (Continued) Changes in the Total OPEB tia ilir. Change. In Slat Tail -a t OPEB LI PI Wit?. far i he Year, Ladling �aasaer�lyr 4,1 rrrrainr) Denambrr 31_ MO I]°rc miber 31. 2013, Thud d OPER Et-T115>11111 P:9JalJiCe Cluasgars far the yaeir r1:10.* �5iI Intorrart ibta!J WP'ER IWa 11 E Ct of plan dinanan Eike aocananaiWilemagaralne yens aQ he StFe3 partsagam 'Netaiaaga Taal biluiAbAT Zazg 1PaIsna. 23 2.1.164.345 1.M 2 1. ,gal 64:5.E.5412 1.0145.787 85,614- 13 ISS11,E4331 $1214.1.6 1.x,1,0 11.1131,4634)a a 1.645. 0 1.`rt6.0110 iE79B.i7M7 _�. 9,11:1,1M1 ,S,, i ,61 The plan change reflected in the calculation of the December 31, 2019 total OPEB liability is due to providing a $5,000 death benefit to defined contribution retirees. For defined benefit retirees, this benefit is paid by the Pension Plan, Like ire. the econornicAlem.ographic ,gayer refiected in the calculation of the Demn:t r 31, 2019, total OPEB liability are clue t the repeal a the Affordable' Care Act excise tax for high cwt health plans and rernovtd of the Health Insurer Fee beginning in 2021. bath resulting l from the Further -Consolidated Appropriations Act, 2020 which 'became law to December 20, 2019, and a large experience gain primarily due to medical claims and premiums staying relatively level since the June 30, 2017 valuation. Changes of assumptions or other inputs reflecta change in the dir aunt rate from 2.74 percent in 2{)19 to 2.12 percent in 2020 and from 4.10 percent in 2018 to 2.74 percent in 2019 and the cha a in mortality ta.lity a. ulmptiana referenoecl above. 11 ge THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Sensaieity &'f the Twat OPER Li hr1tty 40 Changes in .the Dismoat Rate, The fe lleiwnig pi-a�-Lgonts. the total OP Eli Ii,-tbility of the District tl3 of Dcot� rr ber 31. 2020, cairttlaatcd using the tieiwo unt rata: or 2.1,2% as well as What chi 11 . trict's total 012E3 liability would be if °it were calculated using a discount rate that is I- prercent ge.point lower (1.12'0 ar 1-percenta.ge-point higher (3.12% than the current discount rate. December M.. Vita' 1% Decease IJi.12F0) Current Discount Rate - (2.124.4 L40 Incresse {3.1 2*4I The following presents the total OPER liability of the District, as a Decembers al, 2019, calculated using the discount rate of 2.74%., as well as what the District's. total OPEB liability would be if it were calculated using a discount rate that is 1- percentage=point lower (1.74%) or 1.peracentage.point higher (3.74%) than the current discount. rate. December al, 2019 1% Decrease (1.7.1N) Current Discount .Rat. (2.7490 I! increase (MVO Total OPEB Lia lit $ 24,649,392 S '_'S.16..6I $ 21_833 3-56 Sensitivity of the et / OPEll Liability to Changes in titan healthcare Cow Trend Rates. The following presents the total OI''E1 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'. total OPEB liability would be if it were calculated using the range of healthcare c4are cost trend rates that were l.percetatage. point lower 0290% dcc re ing to :2.70%) or - eroent ge=potent higher (5290% decreasing to 4.70%) th rrY the current. rarip.E of healthcare cost trend rates of 4_90% decreasing to 3,7103';',_ I Decrease dererasing Lu 2.10%) Tots.J OPEl LL biii,t� S 1)e ember 3.1, 2020 Current. Heal Lhe a.rr Coat Trend Rates (4.90% decreasing to TN) I*. increase (5.G0% decreasing taa17Orw) _ti.� 7'7,915 Jf 24$20,628 $ 20,178,622 Rag THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) tinued) The following presents the total OPER liability of the District ea of December 31, 2019, caleulatd using the trorr ant tArtgre of healthcare coat trend r .tea, AS well a,a what. the District's total OPEll liability would be if it were Ctilculat:a d using the range of healthcare cost trend rate: that were 1 -percentage -point lower (5.40% decreasing to .70%) or 1.percenta;ge-point higher (7.40% decreasing to 4,70%) thin the current range of healthcare cost trend rates of &40%r decreasing to 3.70%. Thettombcr 31, 2019 Correa( Healthcare Cozit Trend. 1% Docreaso Rates 1% Lnorense decreasing decreasing decreasing to 2.70%) to M.7U%) to 4..70:) Toted OU $ ZV,E19 ,0M 23,104,018 18 8 25th -14 16 o OPEB Expense and Deferred. Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the yeeirs ended Our u .30, 2021 a, rtd 2020, the i trt t recognized OPEB expense of $2,343,501 and $2,266,,677, respicrt.ivel}r. At June 30, 2021 and 2020, the Dl:}trk( reported defer -.red outflows of res.ources and deferred inflows of resources related to OPEB from the following source; 34. iip brre$ HbeAerrit .tune M. WIN nvirrre41 l3uirlirv►x ni ralcma.5m4 L Yud'R41W11 P -fl wi ri( 6E nurr rP, RUN ircan It a rri% .o rrll,u lYi$st.�rs i. iwL.ari Lamm bad mull riun1 racpi-rum-ins # 5;59.r1_EP Chi WPM if g.r-w441Me kar miler lajiiir 2,67.11.4156 ikeithi I W3 Mold, U1a6 autMatfurrhL L4 zrawilitutirriL+1L,tx TtEr2.ia9J, T ii ii.+efL:iu1o3 i mg, PAS 701.: Tit 3144.144,11 7c .9-I2,I* r ME1,6117 In the years ending June tt}, 202] and 2020, amounts currently reported es deferred outflows of re urceti, $862,0430 and $769,270, NS pectively, related try the District's benefit payments subsequent to the measurement date will he re cogni{t l as a reduction of the total OPEB liability in the yerira ended June 30. 2022 and 2021, respectively. Page 8.5 THE METROPOLITAN T. LOUIS SEWER DISTRICT Note to Financial Statements (Continued) Other amounts reported as deferred outflows. M resources and deferred inflows of resources relate to OPEU will he recognized OPEB oxpense as follows: ws NCI J)' fira,y of btiv iitce .11011 ,1. c rein art i e: :1(1: 21322 2(12'4:: 20°_° L Tl,t twaikkr 10. Self-insurance Programs 45,K.1411 (145,683j 11 iktittii (145,601 The District is exposed to various risks of 11...16 , rolated to torts, theft of, damage try, and destruction of assets; errors and o issicrl ,; injuries to employees; and natural disasters. The District has established 1, risk ivkkna ernent. program and retains the risk related to its obligation toprowide workers- compens rtion and medical and hospitalization .a.tion benefits to ita employees; and to pay -water backup claims to it, customers, The estimated liabilities for payment of incurred (both reported and unreported) but unpaid claims relating to these matters are included as a component of current deposits and accrued expenses. and as such, are expected to be paid within one year of the date of the Statement of Net Position, At June 30, 2021 and 2020. these liabititieal amounted to $5.148.70 and. $4,755,168, respectively. The eta irris liabilities reported are based on the requirements of GASH, Statement No. 10. Accounting and Financial Reporting for Risk Financing and Related Insurance Ilstmes. which requires that a liability for claims he reported if information obtained prior to the issuance of the financial statements indicates it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, Changes in the balance of claims liabilities during fiscal 2021. 2020. and 2019 were as follows; LitF'iIk y- Dinning of YOU Ci3 trot;t ymit rlmtlnu sitid chi:mem ih 1%L LLeg Clam pn rnrnes Mobility , End O YrNor RC 1,765,101 I , ,.. 9 ] 117, 'I,:I=G,Rg M a 2019 18,91,5_ .14) 1g„: 0,111d€ (' Hlof5i loan ,715) ;a,1 48, 711 $ 4.755„ 11;8 $ 7r I.' 1 ��1y £'Sii THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) The District obtains periodic funding valuations from tile third -party administrators managing anaging 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 i1oeppita.li2atia n cla ims general liability; and water backup damage to customers' property. , The District purchases commercial insurance for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years, 11. Closure and Post -Closure Care Costs taite and federal lawn _and regulations require the Dis riot to place a final cover on its Prospect Hill Reclamation n Project landfill site when it stops accepting waste and to perform certain :maintenance and monitoring functions at tlw ite for 30 years after closure.. Although closure and post -closure care costs will be paid only near or after the data that the landfill stops accepting waste, the District report -s r portion of these closure and post -closure care costs as an operating expense in each fiscal year. The $686.,W8 and $622,913 reported as landfill closure and post, closure care liabilities at June SO, 2021 and 2020. 20. respectively. represent the cumulative amounts reported at fiscal year.end and represent 75.5% arid 71.2% of the estimated d closure and post-eleaure care oats of the landfall for fiscal years ended June 30. 2021 and 2020, respectively, and the financial assurance requirements.will be paid from unrestricted net. position.. These amounts are based on what it would cost to perform all closure and post -closure care in 2021 and 2020, respect ivc]y The remaining disposal life estimate was calculated in 2009 and was estimated at eight years. factoring in a future annual average disposal rate of 015,500 eubie yaril - It was noted in the 2009 Slack and Veatch study that this life could he 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 ceps w.ity and MSDI expects the landfill to he in use for another -11 years and the total capacity of the landfill and the available spaceas of 2017 was adjusted in 201."7. Frm addition, a new survey of the landfill was performed in Member of 2017 which increased the remaining capacity due to settlement and minor vehicle compaction. The District will continue to accrue annually the remaining $222,96 and $251,5.137 of estimated asst. ofd. }Huss mad -c Ici tine care i.18 a:fJi.ane SO, 2021 and 2020, respectively, based on capacity used in future years. The landfill. gt 87 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) capacity used to date for fecal years ended June 30. 2021 and 2020 are 75.5% and 71.2%, respectively. The District is requiredto demonstrate that it has the financial capability to close the landfill to the State of Missouri through the use of a fina.ncia1 test as specified in 10 CSR 80-2.030(4)(D)6 of the Misseuri Solid Waste Management Rules, The District has complied with the State's requirement. The District recognizes that estimates of el eare costs may change as a result of inflation. deflation, and/or changes in technology and ..ppl icable laws and regulations. If closure cost estimates change. the 1l€lhill t r! u rru ri t l+,° reported cm the Statements of Net Position will be adjusted accordingly. 12. Commitments And Contingencies United States And State Of Missouri V. Metropolitan St, Louis. Sewer District; In The United States District Court For The Easte District Of Missouri, Case No. 07-1120, On April 27. 2012. the Court entered the consent decree Mr) involving the Environmental Protection. Agency, Missouri Department of Natural Resources, Missouri C{oalition for the Environment and The Metropolitan St. Looeia Serer District rM D"). At the time the District. entered into the CD, the CD required the Distriet vend app exiin eol ' $4.7 billion, in 2010 dollars, over #m 23 -year implementation period. Throughout this period improvements will be made to the District's separate sewor system, combined sewer system. and wastewater treatment plant6, On dune 1, 2011, the State of Missouri approved Chapter 11, Chapter 12, and Appendix Q of the District's Combined Sewer Overflow Lorrg.Termn Control Plan Updated .Report, dated February 2011. On thine 22, 2018, a United States District Judge 'approved an amendment to the CI) to extend it by five years from a 2 -3 -year program to a 28 -year program. The amount the District is required to spend in 2018 3 dollars pursuant to the Cif is $ billion. Recent regulatory ry changes have compelled MSD to accelerate certain non - consent decree work. This amendment will allow MSD to meet the-se new regtiI tt ry requirementa ill a ffseall rp al? mt Fhk wars, while baiter controlling rate increases over the coming year-- The District continues to comply with the CD. Other Commitments and Co��°t�oagenci.- The District is a defendant in various other matters of litigation. Of these matters, management and District's l g i L counsel do not anticipate any material effect on the June 30, 2021 and 2020 financial 6ta,temoenta. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) The District has entered into construction and either contracts amounting g to approximately $470„000,000 and $521,000„000 at June 30, 2021 and 2020, respectively, tively, and through the respective audit report date. The District had $853,126,796 and $598,428,796 in revenue bonds authorized by the voters but unissued as of June 30. 2021 and 2020, respectively. The voters authorized an. additional $500.000.000 in revenue bonds in April 2021 and like the four preceding authorizations, these funds were sought to enable the District to comply with federal and state clean water requirements. 13. Restricted Net Position The Statements of Net Position report $97,939,614 and $97,034,022 of restricted net position at June 30, 2021 and 2020, respectively. of which $68,212,821 and $63,177„454 arerestricted due to enabling legislation,. as of June 30, 2021 and 2020, reapecti+ 14. Segment Information The District issued wastewater revenue bonds to finance wastewater infrastructure projeets. `E`ho District aPeOlaritg fir both wastewater and stormwAlted activities in a single enterprise fund, hut investors in those bonds rely solely on the revenue generated by the wastcwaater activities for repayment Fiscal year 21021 and 2t)2O summary financial information for each business segment i presented below. A serpent is an identifiable activity reported as a stand=alone entity for which one or more revenue bonds are outstanding. A segment. has a specifically identifiable le revenue streampled in support of the revenue bonds and has related expenses, gains and losses and assets, deferred outflows, liabilities and deferred inflows that tire required by, external parties to be accounted for separately. The wastewater systems is the only reportable segment that meets the requirements of (iASB Statement m.ent No_ 34, A:we' Financial' slczerrni rFr21: -eared Managemen Disewion and Analysis for State anti Local Governments. The stornawater system is reported on for informational p ur+pooe ; only. THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*i Statertientii (Continued) Financial information az of and for the years Fended June 30,O. 2021 and 2020 the District's Wastewater Segment is as follows; War4'3'FbWATE 1; r I•ITNTSM ENTI4 Ng,' POSITION 1ti11e1-i.i (harem. & �eaesirInteidCusaerm1&Peta C'auli idelc 4-yVPeak !itr 1< WWI 4.1.10 1 i 5,31'0,97Pi loam ILmarl la j111 , 1_:115 aisita.211. Qr=Pr wirri<r Metrr pllreNP ire +A t7i1.931_ 113 In W21 el14.4 fir._14EIALU try 317,';`4) 11 Ilya is * C,resiltrt re: voir ierffaa• drams" ittrJtiebk 154.917Q241 1324,1O ildrruvd trrr.rmr uu Lu *item Citi aoglingal I, 1AU CJ4hwr rncermaliliiii.'km e.Downwro 110,]13 nn 5 Y4I end lgo..10Ihn 2eCiti 2,140.2:14. 5.10,4E2 Sunda] BA IUN 11(61, 9.!l 3,..411 L$ Team tlemdirrWuxi Carr ter ,5mttsr' snag„7117 432 S47AR% ®rick Viirrrol Arxir Other rt.-4,... lflkrr 1.3181:1 '3E1,#TH. Brit#Vitt,1111JrktIntaCSirrefill irdi 111$9113 41]18 Trot& C'earrrae d4/Lamle trlin,m,.CiGrTwel.l4rrwla 116044 km 0,erri r',rih wird to t, m ivakrt kvi,&riva.rIL Lunt -Dorm rorrAmr•ula ilsily ii91101.i rwr n',rbL, tru .J trrto rnr oft riWt"itztvilb Turd rt .d K.nn,eurr,esrl &previa 410114"211.11 ..:JaZ1M6.7101 sm,a+,asra i2,?off ROMAN 16.0114 .113.1 6Ji88 UR Y0.150 d1T,6r'771 IP711111 4#`1, IZI A4r@14 lBSSJl,S_iRP 911 x'+ 561 Nvbar pm,rwrble 1911Nk` 1.1 1111.4 L11,711.1 Lang diem inurtlrnnr,tri 11492.iG1_11BSJ 1;91).r61.017 Teter' Gt1ltr a1•2+ntkfs 11111.1115.5.9013 3131 .07.1:1715 Capital likAil sit Eirpa.rsieldn. Tmaimrnl .ii it u raml 's n.i RDA rquilmcard (f.111K 101 rim! 1kimpin.JI or n1 pliftt maid ettom ll.tt1 14xunulbiodokiprrratrrrin Not dvfmAriMitilli aaavle Nr,1p. - IJd goii.1 Lein Land n ituriien qr leuprfa® Not Capitol JAtiliil■ art441 Noin, I ii rrend +r,rwr t_. 1 12 I,'3 i,tAe,a41 Lit I 1 t M k.:[Br.01111,'r:t Er6sJO,'1_:111 ?#I.i'17.S, T 1011.71.1,61 2 3.0.25+1 LIU`2 1 1«;r►r.4lMI J 1.,16!-4.114.%11 2,;3412_.311Z.73.3 9. d2''-^.13,0liii 77;111* L8S 711,4.1AV4 1.1 Esr ",'341 VaL,i l It 3.. 7..1'laky5+a 8I5Y 041 18I }]?"ref aPa4,?1 L Iran 1,'L1a.rie 1S1T.:1111441 4.01,113J1r.71f1 13PrwirrPil O NI I " IF{ R &nixr{!1}: 1101+148 WA wntr+a IllS.-14111h Ylidr i it b.1 64 a,n trIU VI 11E4 ISA 1311,Z321 Sze1S1r_+96 Fimmun-rritti d aotllhvrt d t DELS713 13 7J 12 rr]'Fkl• @ullka®i 3_tl$1,,ltid %{S1 5 TQIa,I Yl drrrd lJan3iritrraIRill [Al rta I T. , iiI41131 ;k C b 4 lc1 "l};1' X12 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements { ontinue:4? WANT/MAIM SIIL Mt4 IT STATIPIENTR OP KILT MOTION IoN Won 418v40811, LirtklHlll. v t* i Liati iiiakr!*.Paxakdas Prom thurtx+lrLeta9i.dlr,4N.4 eonft-oPIP tin I ±+.c 4a0 NAV.. ld+ a Y41ml Pe'fnir, wytlrr KI-4 !DPW 647044/. fiu rnrnt prrI t ,, of kw& ur l rai» pap h1v �odtMl'ru}rrvnt I4rbJHkiaa-rp]nshI, PretterilL smakri trd'Abaena IL".terrvoi 9.l ltiflel,oFP -4lr Fran rtrtrd utrl■ �l�rrlrs.�ie •aj1 arirsa!e psiyabir T9aeICurrvne IJ ebilkiriiro-Pionlalu Fula m ErAritirdi frit.owie 'TaInl'�1t t°t M+itl d.ltt Priil Llta r44,roCulreni 1.1181.lkitit. 4.ind, AK last L. -milli a pr+r. got itertman Lifiriht. X ml 1]PEIt hadFtr Herab erg mi.= at rrrhle Taiml _ Ors-eurrsmt liattiiw.ta #n.7:.4P 1 NI,V4T,MMII 1-1.51611,M + kll4i i 411-1414471 41_887,844 141,4249,144 1�I:.-! %V �C9 IRO 1445.2111,1.1'W, l l.&S2kI47 [QV C 44'71:8 014,384,711 Third L',1 l u iu I;k L 11a+ Drlrrrs+rl 'ird1 o n a of 3tresottoac T NA& rnl ` utile pp}*r3hie' Iltdrm+l wain ra, rshrn.drty Z. )LCti. l& Prnrrtns-rvlf4d ollleeia 26.=.1. I':,0 t#]"k.1l- rchuoi 41110 .91 L112,1111 ?•, E I' ii . r l,i r, ,mg,441, Tulrl tati"rartid Ian flottx o€ Rtootu tto 8#.380. r7 1WWf1$ me ARt (wail num* 1:,1/4tautari for Lick twrito 2Zactiziolci.comdiateirm erHI rmpraetarroa l}tiratlerrlmi Twirl Not I ealltort 11.114311.228 a,7Ri. 'C.o4 1.884,18111,77.7 :414.148 11,793 $0.6h t I46°,'7541 I„NUM 897_499.883 i880k?9.81Lt iztuostast $ 11.XL Ma 91 THE METROPOLITAN Te LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements (Continuo* SrAT MFN1 CAE REVENLIES. F_%.@F_X.S°IN AND ITNIA,N'I ES 3N '%PI'romiON I'".r The Ytifa Enrfe,d Hume 7d bai i Q41rF L`�pfiTrAMIItF Ilir'taillid4 voftt- ester to t h ntor. I 4 1 #. I i .4TFr99, KIS I$artlNdr, rplmbe.. €TWI dyc,fbtfil..iei4w attitlrn.Lp 45.3M I I i 6.1..K3.0M) Larva, Aires rind rihrrt ham aSki, r-97 &DU -WI IJLFrrr $altdn17s1 10, L I uL�L 47prrral lripl Itaysrerrure 4:4441 i4Ing liviptiti 9'vrn lad L tat ta arl I'dl+aiun srii 1nfuYEeitiatint I:nirwvrr n I. Omura] Fria tatrnarea I raLiyr Mk"�trr harkup rldern� Rapalai all ma &tan opLanktr1nraat Total Op,rral Inr i`sg1rnar` 4 1:Frrarliinili bra raw NO Allpecallffill itientMaii rvrprAF gime IrroF hg' the Ilr.lrirl IITLirrtrrrn1L virt'trrr rem rind ithrr aorrant. TiLL11 NnwepprErlinld griesmua Non.4IttetatlnicIutlpart oht N'd1 II!,.. erg ALsp:-"' iLIh mir rsia ''S•.,:re•rrtv:rene; I..vxt,, e-,1 ad —IL —two. 1nlrrei+ 1,47.411.1. , LASS * Vil.2142,d46 4.r1i5,#€1 a Ig99.454 745,0013.043 at. 11E1.499 farrT mom man, hi L 114.1 1111141. ,$491ai.,X.l4 `.n44 1 I$i L}lli,I411 71,01001& I L Lx,1 V.1 1 Gegia315 iA1M.1Ja $d4ll. „1'0 1: I,dU'l, knI 116,074 9,,11r'I.fri3 1,624.017 I4,g512�'} S 3143 6,14:4.7.t413 50.11 :i5:,11L1.•3 Totted *1.4na.lpran4Inw Eaganrrrw *7,1 ItsI Cti $elm IMLwInr WOO-{'ill•Ial liirXW11 Arid CAM th L 1.34a 9410.144.4.415 11144,7,111,27T eaapl.iaal I.r®nlf .Lanrl Crp.Lrihretlrna S'tpllarl m-,111. i+3lr.Ititt—ktl L'dls .:11?J •71LIPLAI €: I i[irlll. rti;:rrlrt.'• 1. +.i�11'r I iCA134) IIktnl I rpir,rl Gram' Anil tpairlivuiliaad a? re34++ t.R£ii4}t}7 Chartlp In. blvd [+aalIIlnal 144,4 :tkr411 5:57,7 -IN II Nat Pad Pod - Btifl Hog Tcao 11,21S,242,711 2_4411, 42/4.$411 I fbal4lon . Pk -4 IJi Teat I J,52a* s2.„i i # 2,21,1,212.1-21 3't1 92 THE METROPOLITAN ST. LOUIS SEWER DISTRICT Noteg to Financial Statements ent (Continued) ik'A'1'i.'tVAT.it SEOM Eyti7' •STATTIIFXIS OF CASH MOWS P4rr'POP Vero 41wilt !5 RFII 1112211 €'w,11b iltaritti FrvmS {9' b*L1 4 4rllae'IRIin� fkr rrrd Pry • t+rstrrst I, Raid $1 rPMF syVale 11.e,rA rti 4 PIA 9a .t _,rylic-a dar gmElm and nrrirm ., CIEs* Provided AF'ti ,arMJwnir©Jtling Cm h. r'lioo a rrerrldndFry 1 nn-tayliit.Ftinra.rtag Arilfiririlm l� - Araedhs-PAKL II teT,li ; 1 $ 17 A:Z.&VI 114.XLMILSZO 11.#12.8.4810 s l $1OM 14ABEiLidi Ib Flu .A r Frarrr Carl LEI And R Itgl Fine min I.`4irirlYlafr I"r oom) i Afrolb a IGr+I row,. $114? 1,4ri9.4D18 Vrccadmir tntn immrrne d dot 112.422.154 @}Jf 3.405 I"rrrczrm ,m vale et Math Ir7.144.3112 1.51.0011.117t5 1`rirti dr�l Vii; r, tilid4 1t 4 1$2,10MVAI Imrr•ear0 .0 l dim rma i in 4l brl trot ?WNW 01196 LOW 1'11tmc aIlls coital manta 10444Aft OMANI_ 17+Fu:a l Owl pa1w.dc yjarl *2 SS!) Pram 1Foen MAE IIMPIW21116,, Cyr eklpirrrmnsmi min cripsillita ar. In [LMi+YSatrlsr ni Itr.ri[eildr Main 1.1311,.M I,I$4..1N71 I'mnee ii lir'r n II.b ! i i4ti drisaW iI romp' w+I■I1 1,1100415 hmva. %HI rat trait 1.$4.144,7 LkW $11 Vs� eis$111. Wow r) l,ip1 .& ).n4 1/140144 it Pnring'Ar:1lrsllm II' x : ; .1 Coal* Slows Wm. 1rrerytheirokrtlYtrlw Pnrrla` m of Inrw t*rmll ir57.il.1IF4 I 510 `dill. 1212 I Prctoodo Ehoo ells and meiun y rI li!nmimeem mikhAlkim i lf$1 Perdlfiret'ri lri?w•, tt3"PT„ 1 iii.9ri7. ll7 i Prmmlm irm Tani. .1145. I. 14L147 14.4 1.4.116 Wood h Y1s+uvtd d R1, 11'04)41 -NM Aft !YIN IV* v ia I$rr,-5 cLlIkrb hrto bilmegm. ha Coati AM Ceird4 kavvollrryr talk gal MAMA= rs.kh ..Ara ikrylwilEni.% M. ULNAnnirilp lkf Yaw Su11lg14ai '$1.1.14.113t "®IL And Crib BguII.ILnLI hL E (MWarr Page 9a THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r dial Statements (Continuo* Financial information as of and for the years ended June 30,O. 2021 and 2020 of the District's 's Stonnwater Segment is as follows: STICIAMIWATIM. aX jF r 111`.,'hTF r1F' i$ Oi 1' KW11011 7aln1 1 1. SMS Alberts Current Amen llrtrt�IRriir truli 1IIIrri'rrt A"K" CH1113 word s;rrh -1,;129 190 4 k,49PRia ]rUki 7sikeir a 7 :3 # 12,13t187 y dears& rookveble. lead, ellkom $1(14. iii; 1end$11I.Ii:4Win.ill`s IX1.1117 PriAwirly PA Imp trr ernlilr, k;. alibaaarare 4/#1,41:10 i.l" '41121 u /9.901 lit 21Y21I 411-(1591 Aecylledkile+iffiE LEI illYaaRe3rilS4. 4p1.449 rokoto 1dQ1il 1lnresktrlc1ed Armed!. 11:"64'4.+I49 116,611.010 R rlcied Currey!! Aulve1r OA dull keg NuiL°;i ents• d,ds{ur.i :1,%►.M1A1tt 141.1697 -OS itieol tlatir 6:1411 urra ni A.nrefir 17,217364 21.,60 2-348 1'1dll Ni-rni *a Wrt.�c 11111,r urrq nR AL.1 rr. tk 1C EMI rIcirml.' 4i41r Cnah rod s sa li ic.siraluner I weiallniMntt I r+ermilweetmerlr Vngyurly Soria rtrmYrlvlt, &aaa alluau o { :$tl„14 tI2,0,11 and 1.29 wfii 41'I Vail ,icitIJL l 1501.41,k- bar Ili V iLM Toted 11etltrle-te+d : urn -Current Agree* Rhrr MaiV! I,ao.K.1 Arrn iasai tmlynr 'Errol 4.11:114* ekstirrrA COp11Ol Aralete 4ari epri, qnd;rumPin£ ;1.nn.t r ia+rtt rt9 1bri[ r ru 1l nn L -n Imam Ara- m talaa,a8 - n►c u,i Lux! "teL det rie;:L kattt1 411V. M6M1 4-56. 41.1.112 5111 Land A.407.1** 7.t1;pLk7tGt CirestSlrltim in rummy* Aklyi15,7f;7t 3t,lEl1.'471) l'ht C'-Prpti-nl Anam.I., .1)1 MS Jax3, F7'7.9719 .s R 47,4115..1 4 iS,11.141.991 0, G MEj. Idti27,1,5 �i /0,211(1.1M 59:1.291 110,143itri* 1,7611,W7 1,407.947 2#1:1734 3:117_Mt_ 4 1 s 139f1 Ag13.1100 01.442.101)41 7.41V,.541,1 It042.9111 7,45Z004 fAt,y#>$ aR tom '1_7Ir1 7.,21.310,11) Ifk792_590 rr , N7111_?5RI Z10,11A2-4117 Ya1r11 "+Guiti.earmed itiaeir iit131711 q�l ,%r.r+,l'. 13nrcr'tt•d Goon or NOR roof c 7'rrul�n rAIEY!! irrIi r .i, 7lpKU.tthlts l.rls11i! r. iOirl thrierrer11 mani:rare tit I alai rr 7177..202 aR _Te1► A*, 1.Y'rrli 8116;fr-1 !NUM ;Al 1_15011 1.r`f{C 16fI 7,:11li,Ra nag 4 THE METROPOLITAN Te LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements (Continuo* s-rointwhirm €} I MEM WFMTI l FNTN ii? NET PTO t1C +i1'+I4d) 102 I I iNbiliiira Currrnit I.iaki9L.Ll.ra-Pa1.11'rbale FF i tirirwIrirbrel akicarihr ekikerwili krnil rem -Walla i rgrthLr S 3131.1 1:1 $ WE1.= ulirritc,sr mod eccru r oriwervarm 6.31410 A 9155-546 Retsina go pit — g Tc4$11triiirrorill 4JFarr trikivrt AtEmPfn y 4tllr ElieSORU5A1 L-altpost& LirbilltL,er-Piymbile Prow Etadl. eEesoi Aanwni €:ut rrnai5 aarni rrs unia p.ni t& 7111 A145 M1.1011 Trviml Ciivn*n4 Uptil tiase-1'grwb1' Fro 4n.' it eted 1.269_971S E,arig_ 'ski 1114111 I:urirant IJabilL7.lea 9.61a.siet. I L,Itallkn Non'Ctsrrveat 1.4abIlhIee Net peapcnn IiN1111ilu 4,9W4,$3£i R,MILFLIG it#sl KII'F'.H Icabi5i4ti :L.40-1-43 :kt7'6_bla Tut.F Nar—l'rttreen. I1abLlititi J8YI1 '6 12,1434355. Tom! linlh .Lil lei iiidtertraa liter d,*/ fir iiutdeirt#ir! t,Anedinzikoril it krrr 1 PETi Bled 1nl'w UsAl 'f1rtfrerrred 1nli care Erd .11kriaarem Net Posltl rr Nrt irix'ratrnra1l in rapilbl eavvye. :dnarxLe,e! fur L+U +'LLe1rt'aCt tsi�ti HFtii0 ilaii1 Vivnnoric,itd TOIL! NrE Piro.iilFro 117.MAIR 33';7117,141 Mira ta,sa3 Y, 9El2.1141 9010-14 19$,94..000 1,$'11 31 Page 9/5 THE METROPOLITAN T. LOUIS SEWER DISTRICT Note to Fin*r di*i Si , 'M 11entA (Continued) ti7GRIIL4'a'4'rEIC S&ltat` *6Y' STAtf' SIF CTS OF RPF' [NUE& I Fs;SFs.`4 AND ClIANGES DI NET POSMON F1fT Z'a1�' Yr' r i Eridc{[ .'dune MI, (Fptr arierg RM�rrar 10111 l' man art -vier else rile 42. m1i t (I.*»I1 Ih rri-u• el 41pri VluceI Ircl iIviId€u1 w. yr wn-rwr rhnty , wpm ale I :61, 1I,S41 [}Ik'rrti 8,224 'L t t.67 ()pedaling outer its irt,1110 in,cci3, Oprrating E pt,iwer Cal Il+.ixlrl' ••Ifti n main Lennart! I:310111 1 13.1344760 Erzinimrirki I n.7t>S.i14 1(1..M.1941 I xnk [ma minikii.4ratixr' 132.0,.. 7 11,2K SW DeL' WIatiruo 1.41).74K.1111 111111th Trietnl (iprgratkor4 ExpinT101,04 36;[11{4.346 iTTli.66:1` Orwrea erg iI it 11.1!43114.11prnatiall Rev I'M Ioiw l'bypet ry ri5:tbt kiled ble ia* IIIADWL. I ibt`r.6dl' Total N -iptrallnpr lltYLLrres l G,(1iW,156) r3lr 76/,£+61.W 7,73) ?Cori-ript.raeLrpK 4`.-prn:+r! NM i4i dlwpTeil ade td rairwIn3 aaresIN Mac03$ 1'0i..331r ' r'n•gt+r„-rrranR prrgrcerr +rnd evil 1.272,5:k7 Mite] Nrao-Opeerntinre Pappeirtme. 1 ,054.302 • 27 14$ Indroint Mom Brehm C$rrIribliraanr 7,053,107 0,024,04,490 rrip0191 lasoe4 rcnpriiHIlf.1 1,334;912 6MiUSOIrt rewiroIn G'1+arvgn Cdr. ti4 l rilftl4n I l,6.CS.113 (1.1813.45i1r7} Nut 7°"timitival- Iivier4lrpg Or Ii.i,1NY.Ib bd'P.iESsl#ma r pi lkrmitilFT1 - End O1'1fiatr FrAll,27X.Zia f UT. 1) THE METROPOLITAN Te LOUIS SEWER DISTRICT Notes to Fin*r di*i Statements { ontinue:4? .1111)FtWOVATE:it 1•41r N11 11 11w.W.1w eit ¢'„10,11 1 1.1,i'.4'4 For Tli 1'rv}ea Kndird June 311, 14ru'6 - Caen Flows From Operating! isrti ill,ee RecLvn:d Erns!! I t.t. rrrrrrs E. ILA tei JONArrtsr 161- guadivv 10..41 Vkel !Vat Caa1i 4VM 1]*ratrritirtjAfth'itiar Cash Fltrr'-a PM'S tied By Non -Capital llesnwIri t Imtsa Twos N+n landcollerteII Cash Flows ham CepI it And Metaled F rerticl ng drtadvliles Protee! Ceuta, capital g-rarrr Pa media Ito ltro..00ds from inlr r si111 Net Caty.l, Weed Ip"h Capital Alert Mistal+wi irilra la4lflk�+Ji*91Cri�e Califs Flows From Itixava-mgr4ctivilties Risme tnuesunaus promorel■ rrrrm soln ppsd oraia1wr•iLT c jyr. sfrea. LY4#alinrirl arinses Nat Carh. irrM3404 Itv i°ng_3r t.:M M* �1a6 drtrrenar: In Canals Ailed 4 e7,lr I %lea 1. r,lv-lrr- ['ash Anal (' 1r EqussaIrartr.XI l viiarrrisrl( 'Frar Carat Arad 1''arli 15qudtraitain Ai Liv d OT I'll.•°!}ar i I 0,111.3 r24,010,040 4 ?,Sr2'L99) I +7 Lnis) i1. 11,3141 al.,94(1.335 aral.1524 l:92.7xt„9OlI fJLIG'k1t'.8T tizA31,514.7i 11 Crti$.ALS) IS3'I 11113,447Attlil 76,526L19Il; 170311.317 115$•rfi144 l „fi'*3 t7 1flr9,9i 5 IJ CeS0,f�I t34110,01,11 $ ��.11.3,ilt1 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) 15, Tax Abatements Tax abatements. are d.efned, by Governmental. .Accounting Standards Board. OAS1r) Statement No. 77, Tax Abaterner7 Disclosures CIGASB Statement No. 771. are agreements between a government and an individual or entity in which the government ent promiseF. to forgo tax revenues and the individual or entity promises to subsequ ji11 l y take a specific p ion that contributes to economic development or other w ,, . benefits the government or its citizens, This Statement requires disclosure of tax abatement information about (I) a reporting government's own tax abatement agreements and C2 those that are entered into by other governments and that reduce the reporting government's tax revenues, Since the Di:rtr`rt des not and has not entered into tax abatement agr-eementH directly with any individuals or entities, the following estimates are from tax ahaten ents. 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 expand* businesses in certain 8pecified 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. I.:rrid utenrance ror Redevelopment Authority: assists with the redevelcop -il l trt of blighted or insanitary areas for residential., recreational, commercial, i uda.4t r'i a l or public uses_ Urban. Redevelopment Corporations: provides realproperty tax abatements to encourage the redevelopment of blighted areir by an eligible city or county. 1".11 iR THE METROPOLITAN T. LOUIS SEWER DISTRICT Note's to Fin*ridi*i Statements (Continuo* The amount of the i:str'ict`e tai: revenue8 that were abated by the county and cities initiating the programs are reported in the following tables. F`ltr'1i� 'prtr 114.0040 30 203'1 IAnd Koh &i ed 26duu'Iil Cla®rant for Urban 144-1,rnai4l070445lar EPga>p a* I)lvalr arrl.Pra1 X4411,.'vgrl0,pra4tr0! ItigkiCalkiWingral TalrlTax VT City 7.000tA fin lids Jk ilicirdEy I o p r,t1mr1F ilbntetOCITIRO Lk Ererac County ; - $ I.WI IlI $ 1 I.LTb 3trr MI 01,1lavrin - 3.44u - Ag541 044 Ui. 1402 093 lErgi rn%will - - - 17;IM 1".r3t1 1n+34fio.r.a - Nil - %Mu 51.44V5 ritywt 44‘0044 -- '.1s, S11`i 42.-'44 Klmun44.tm - - 4,403 L414°l Iki 1.y Ms - - 01pt1 nig WW1 SAW 1.1547 UN F4Ie Ernac - - -. di* Writ lllaat`eKli641 4.45.1 MOW - WW1 14.7 5451 kl'rrloeiw - .. 46.5.4ECI 45 ,000 .161 - 1111 - - u1 114.9Iie - - 114117 l iPIT 111it41aild 114410100 =- 00 7%4115 7.441i Ikkir andif - - - .J,1A& 0.0111 1 1Iiv Iii -- - - 4,500 S!'Ma I liar lrnri - a� 9.IXI? 11.O ll• �,J. €1r - = liclikt ifs. -1 l NIi1I - - 4.1.05► '4 Nu lo., Aria Isilb - .. -mill B 4 Milo - - - 03 4401 Urn byroiy i IO - - WV* - 1n :u Will aim - ... 1'1.1 7501 Tilfavitath Mince - - no liis Tama dtimormwm..0 440141 1.4T IC4VI I /77,1164 u17:1103 Iiir 4Jir '6'i.:1r 1-.nrlrvls J rxn Oa, t 5O Lord En rani.r-iJ Inab' attint Clow r{rtra{pr 1;'rltan 1.+raiu Cum nty Enttrod we 1].'ti-Ir.lrrin=tar edeivinsontrtit 1t;rdiwe.lnH+rll nit Tad al Tali �r CIt r. Za ICjitL. .4wI1or1r ib Aka r scrmla� 14, Luca, r2.41 rill i — ! 1' , r 1 °t -Ski i Irlr1 112 Rh I l rr.+'r 1.'.°0.:.4 IA* Flro! guliru .- X41 KiNnItw-4.0E1 - - I.;_:.r1 11,17711 rhitionrAm I t:as 1.40 IA 5 riag'ltm - 11.26; - 2-162 ZEL,A lelaIrurAmiri - - - 071 p.P421 1r,4144ka = MIti till Frrrnvirn - it,Tbrl + 14 #-'J9i1 Rl+arwlvn.241 3,M1IM 1LILT - ;40% I'I'I lrrtl IIRItt zk - - - 301:1[05. WSW - Lid - - i. HMI illaplortrd - - - 9o1€i YAM lArreland 1044644 O 7.47Tt 7J14711 ►' - - 'M*4 alma tjrrr cl - - - i..0450 t11r.1 11'40.404 MAW* - I L* 11.4z3 Ruck Hill = - - t,11* 9. IN I 1 11.111. - - - #04 #I0 4101040 4.40' ca. - *Arl TJ4 Wm Will ilium - - - AI_ MI Told TO ) rswoty g. P14141.1 Vark14111 $ ILIA I 7®rti1'Yi * a1 3"+111 99 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) Tax Abatements enter.ed into by St. Louis City The City of t_ Louis offers #a coal estate tax a,al alt 5ataem program as as development tool designed to assist developers, businesses and individuals with renovation and new COalar-m ti mr 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 rehabilita.tiori, lafan existing building. The application nmusa, be made before construction begins and the usual term for tax abatement t is five to ten. years. The amount of the District's tax revenues calculated at the District's tax rates of $,107 and $.1077 per 5.100 of assessed value for fiscal 2021 and 2020. respectively, that were abated by St. Louis City are reported in the following tables, Par the Year Ended .June 0, 2021 Unabated tt. Louie City_ Values S -t- City 0.4n9 dDr tiriI $ r?s,71013L490 Tax Revenue Abated Values Tax Revenue Reduced Tax Revenue 1147,:3:3f► .lti f ,724 $ ta,m ,1 ,41 $ :;ai]El $ l fa 190 a212ixi 'x,17 1g;a ,1 t,,; ,a L , 43 a Y-37Z:12_:i 1 I $ 260, 78,3 5 S 71.042 # d 9)161 Unabated Values For the Year Ended Jim 30,: 80$01 Tax Abated Tax Revenue 'Values Revenue 192.521 $ 315,055,120 $ Cnmm:r rxild N2550,470 :315,077 127,193,830 Toll $ 471,31A,060 I 1.907,602 - t . , 37,754 136, BM (74.712 Reduced Tax Revenue 164.,37] 17502* Tax mac_ r +tit_. i. taz :t dig- _ by St, . County., Cities located County and St. Louis City Misfouri's. Real Property Tax Increment Allocation Redevelopment Act enables cities to finance certain redevelopment costil with the revenue generated from (i) payments in lieu of real estate taxes, as measured by the net increase in assessed valuation remitting from redevelopment and (ii) a portion or the increase in other local tax revenue associated with new economic activity. When a tax increment rnanein ("'TFr) plan its adopted, real estate tea ea in the r devaloprrler.t art frayen At their current level. By applying the real estate tax rate of all taxing districts Page EN fl THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continuo* having taxing power within the redevelopment area to the incr,eased assessed valuation result i from redevelopment a tax "increment" is procluced, The real estate tax incrpn wtit._s are referr o -d to as. payments in lieu of taxes, or "MOTs". and are deposited in a specialallocation fund. The estimate. TIP" incremental values and the Districts net, reduced tax revenue resulting from the TIFs adopted in St. Louis County and the cities lowed in the County and adopted in the City of St. Louis are as follows For the Years Ended June $Qd 20g1I June 3Q_ 020 St_ Levi* L'ourtty or City tag ealuev and cirtie• Locatird �n Ht. 1.auat enurkty Kt. Lamm roway EI [FTr r ixa�+t It. Louis City St. Ionia City 11101's nevi we TIF' I neterne Ital VAIUCel ,-1100,110L5,24;1 TIF Reduced! tnerentenLaL Reduced Tex RUVP311v.r: Frb111 Tex 'Revenues. meat#i ieP+l! 376,A70 1.aY_'ai?i,'i I,:'W 5 J t4A 1_850351313 a .i 7 S 1 .088.6132. 112 31073 142-175? in summary, OH, r, f i k.f rie_es total tax rev y tues reduced ed during I .12021 and 2020 as a result of the p srogrars of other governments are as follows: St. Louis County 431° City For the Yews Ended June 30, 2021 June 30, 2020 Reduced Reduced TFtac Revenues Tax .Revenues St_ Lead' County and CiLien Located .n ;.1-4. Lou6ri claim 'CEx + bsitrmrtnaa 575L, St_ Lows City T Abatement* 2141,S61 1:112.1360 St. Lows Ginty rllnd Cities Located in St. Lean' Coat1Ly . ' 'r 5M7R0 E00.244 t. L iuiii City - TI`F* 357,157 12112,606 Tani liedtirt.'dTtet.Revenuei s 1E7r4) l $ Lecakai rage 1 11 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Finencia1 Statements (Continued) 16. Fiduciary Pe mion. Trust Fund Cash and Inveetrnents The Metropolitan St. Louis Sewer District Employees' Pension Plan ("Pension Plan') is reported .as a Fiduciary Pension Trust Fund, The Pension Plan reports financial data on a calendar year basis and issues a publicly available financial report with audited financial statements which can be found on the District's wwweesdprolectelear.org website or may he. obtained hy writing: : The Metropolitan St, Louis Sewer District, 2 350 Market Street. St. Luis, MO 63103- 2555. The east] s.nd investment information for this plan Ps im'liitkd bek w end the fair value measurement and application is included in Note 17. Categories of Asst Risk Concentration of credit risk is the risk of lose attributed to the magnitude of the Pension Plon`s investment in a single isuser, Pureuant to Resolution 3597, the Pension Plan is authorized to invest in the following; Equity tinivestmerits: COM1111010 stocks of corporations., mutual unds,. or mingled equity funds (Dlrme' tie a,nd international, rral, target range tx to 25%. allowable range 2% to :3:0%1. • Fixed Income investments: U.S. government and agency securities, corporate bonds, debentures, nete , or other evidence of indebtedness assumed or ,guaranteed by corporittions (Domestic and International, target range 8`,}i, to 14%, allovvabie ran, L _,1. % to 1950, Short-term Securities: Commercis:i l 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 % to 15%). ▪ Hedge Finds, Global Tactical, Real Aseets, Market Neutral, and Abaolute Return Investments; these investment strategies help diversify the investment portfolio. rage 102 THE METROPOLITAN Ti LOUIS SEWER DISTRICT Notes to Financial Statements (Continuo* The fair value of investments managed consisted d of the following; investments. at'Fair Value V D1let-time Invest lin egt Fu ydo Mutual PundA Real litate 1m1:eAtrr, evli Comarate Obligatiordc Ikoarlitie Common Stocks ITS TmA iury rood Agency t irl i 6ipr% t Motley Market Funds Municipal Obliptiona A.R. c . 2320 $ 171,"x67,753 r',#), 177,:1: 74 277.63011X7 18,652,254 3,237.887 1,292.527 ben 31. 2339 136,302,0.34 70,580,513 92,363,166 21,1+81.033 1 4,80,772 ! 6,42.8,7'9 3,110,267 564,136; Total Fave trnertts $ 326,92 9,351 51 $ 296,151;777 Interest Rate Risk Interest rate risk is the risk thatchanges in interest rates will adversely affect the fair value of an investment, The Pension Plan does not have a formal investment policy that limits investint,nt maturities. as all mi`.nA of managing its eXpOSUYV to interest rates. The Pension Han had the following debt securities and maturities. Ai or DDrrtaber 31, 2020 IInvrlitrnrnt Tviar rair Volum eurpori ie, Ob . ritlorm $27.6133,1467 U.S. Trt:aeury° and Agency 01:digationa 13.001,72 l ,runnel 1 lip ti i..231,527 TataI 3.13,ii16.I1 Weighted Average Maturity (in Vrne_M 4.92 5.46 3.67 rtFaillica`4r eigh•ti-d Avr rave :t'lnLveily in Vritr* 9.42 Page 10:1 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continued) As -of Der•ierrtber 31•1 2410 tnvi Lrn ii1'flo C4.rIKIrite O b at IiFI7Ia U S. Tray oaury Iii mine° Obii atirirlt ur,i psi OA fratinesi i Weighted Avevage Maturity '`air Value (in 'item) $21,1181,1160 &in 1 GA 28,797 5A,1 554.1.36 2.72 38.9634983 j~ai5ril'ia1'inWeighted Ainr'rev ittleurity in Yeaph 4.36' The Pension Plan will allinimize the risk that the market value of viecuritie.s in the portfolio will fall due to changes in general interest rates by: • Structuring the investment portfolio so that securities mature to meet cash requiremenits for benefit praymer,Rs, thereby avoiding the need to sell securities on the open market prior to maturity; and * Monitoring fixed, income investment managers' performances to he sure the fixed income p1)11 ion of the investment portfolio is 1118 n a gee to predetermined indexes. Credit Risk Investment credit risk is the risk that the issuer or other count erparty to an investment will not f1 ifill its obligations_ The Pension Plan does not have a formal credit risk policy. The Pension Plan will minimize credit risk b • Pre-quali%ring the financial institutions, broker/dealers, intermediaries, and advisors with which the Pension Plan will do business; and ▪ l) i vc r ify'jng the portfolio ; that potential, losses on individual uritiea will he minimized. Page (114 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*tidal Statements { ontinue:4? The following tables provide information on the credit ratings. asaociated with the Pension Mane's investments in debt securities: Crtid t Rating by I nrcmtment as or O c ,mb$r al, 2020 s&P Ratirug ,AA AA A 131313 Not R.at d Total U.S. Treasury Agency Obligations 13,994,724 Municipal Obligations 1,039.765 221.605 1:157 Corporate Obligations $ 3,32,9 25 876,954 5,645,923 [2_511,702 221.1720 5 %126. 43 Total $ 3,328,925 16,911,-x43 5 97.528 12,562.859 221,720 5,026,5.43 b'1 113,g94. -1 .3 1 .2q2,.527 1 i1 Ai A,q 1:30,M-6 $ - 2 y'P W;4,11 Y9 Credit Rolling by Investment as of December 31, 2019 S & P Rating AAA AA A 131111 NM ltktt d Total Trrtuiur-y, & Agency Olinliga iLo S 16,428,7g7 Niunlripai Obligations 524,046 30.119[1 Corporate Obliptlona Total 3,322,315 795,955 4';#113,879 9,092,765 3.907,939 $ 3,322215 17, 47,098 4.913.879 9,692. 55 S 19.420.797 $ 564.134E $ 21.91.950 $ 30.903,98. Page 105 THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Financial Statements (Continuo* Investments Greater Than 5% of Net Position Restricted for Pension Benefits or Total Investments rnve4tt'f'Gd'•nts that exceed 5% of net position restricted For pension benefits or 14atiN investments at December 31. 2020 or 2019 are as follows:. f)icernb r 31, 2020 2019 3l$ch l � l Ruwtel l 1000 Index Fund. l'qori-Lvnding $ 83,783 52 26% $ 73,563,571 25% Py.uderLtLai. Core Mu I3 nd Fund 40,-1d 1,722 1"2% 33,914,488, 12% Manton Stanley 1ntProatioouI Equity, Fuoul T .40,216,372 12% 35,69,1,935 12% I.3RS Trunthutll Pi+ pekrty" Fund 30265.219 9% 32,566,282 11% lintad> inv Global Bond Ol purtuni tie Fixed Income 27,5 97,5 13'% 24,337,6713 8 Morgan Stanley FAneryingMarket kind 1 19,962,602 43% 16,621,570 6 Tinrea quare Small Cap GrowthFururl 10005,-39 fi• f, 1f3,325.r4O 6% Kennedy Mid Cap Vslue 18,571,06o 43% 11,892$47 5% Page pba THE METROPOLITAN Te LOUIS SEWER DISTRICT Notes to Fin*l di*i Statements { ontinue:4? I7 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. general].k accepted accounting principles, The hierarchy is hotted on tin. valuation inputs usetl to measure the fair value of the asset and give the highest priority to unadjusted quoted. pr' s in active markets for identical assets or :1 111 the lowetit priority to unobtiervable iripluta,' The Pension Plan had the following fair value measurements of invested assets as of December 31, 202 ,0 and December 31. 2019: le a�rtr�e1xs %1trlturRd ht Air Value Viltr urriiW elr 1.rieti� to omit tnrrtt.tn IV PAW i.Iue 1.4A-41 ' Mei l4Fars LR.hatNre Z -',l llir•rrt lifAriurte rir an' Elamillmand ldrrfilcol Ohr'+eruaihas 1; irt++b eretthls A114.7ea litgluda ltlrpax} 12 11,'Si A llletnnl li 11.tyur 21.. Cl.rvrd 1p liwift Hei:utieils !Corporate !2/44 $ li,iN21.00 $ $ 31,6:111,501 lr LIS ttlfilwat5` KCELIFA ■nd ]iii 8,401,1S0 4,-!21,1! + a UR rk.ornmerik Arrory Ob4igaikinr 4,+50.571 -- 6.,for,514 1ur>snpal (1414pakkordi 1.2112.M 1.1 02.1501 Tddrl Mkt gicurixtai 42,31L111g 01,01, ISO ;iI.=42t1,11Gfi F ity 84friami 4iIl Clew n fquaiuta 1A,46.51_2•!6 16..M2.2 S 1r1a1[avir11wtnl Kq..uef4:4 40.21,6,it — I+%2Lfi it 72 — PAIN7Mi1 i lilor'k.go FLm1 1' .*N.1. 1 — "14 _ Te1.9 Equity ltrtt'ire T+ lt:iI.44) Ie.i.3. # .170.1il• Tvas liaearLnlr bs by Fair Vale a.rrv%l 121,>14i, 18 $ 2i.4a 4]fr "� f4l,400,142 9 Iliorc'`IIh.'mLtr %1LA IJred 41 d19.r qt A N.P4i nhu ,i:ti:1'0 1 Er ri.dr+d F1+rt!xnllda+art 11:r+driup1Irrrr CurriniLrrrtrlkl bhitienry Nailet Pft.lad 1 +tanrix }ijlul ier'' ` 15T d't44,t111i llaih 1'nrwr Cory Kos Rtoruicirri min wr4 Timid $'4ne1* ✓14,441,111 Um* 5 1.10* Ned &me ?m i. ' :1101 ,01$ L' urr1M111r ,hi alrym CC:iairil F;rw1. [Millar easetilisOrrital lfuiil'" 7'.71'i!'r:71q6 Witty lip1'4uyiN 1I bw 151 likripP Ftipd or ru 111 1,2'10 452 1 1..tmlifIT 20l ' 6, r.Mrtdl Lfitmrs tmeintli. Pelmouttrel di the Nit,t141141. %Wig- $C2.0251012 511erniw Ntlieltet pl Arrtreraziml read 4. ';IL_ ruL.a1 l witrtur o el Kilt Vn I 27/443aitis7 Page 107 THE METROPOLITAN T. LOUIS SEWER DISTRICT Note to Fin*r di*i Statements { ontinue:4? �ravrt.I rnatLiti 7A Parsu MCIAIt }rgir'brrl}rtr F#rr Valve Uthar r•L"7•.r WW1* by FRO listing I.+rve1 Art * @it4llXarr[ral Markettr tar Other gt,oeuiltent hired levil OMRver't►/e 1 b4e 1.414101i1 Itititdiab otpur ie Memel 11 11 erk 14 tliriel 113.41x Ststurieitruk. Ow tail b.bWntoew I 21.1611.1.1$1.11 I I 21,141.1.,t1141 1 Li�1'ewzirt3' Cdr lad 15ita& 13,241 ,453 13;242.4 93 — 1I T11y*.rl+seflh ,gym Oil rozithrui 11. tile.Rn - — 21,61%1,277 1.trsrtxipesl (1@1bitet mid r1 I l &S 1 1 rout Doc smurait. dsil.iisxi L&u4 4 85s, a,'. 'd Polly 314 evelia tee: Dres,emic kg mkt,. 3L.I;ist,'$I I 4..SISlidun lituttilAt tea urnuiluo-rwl .I.:A:Lu ar,:1k AS,4941JWI — ss,masso swenripi Nlastsai. Ned. 3$.$21,11411 — 18..$21_,511) Total &Fay Serarrb m 11Fl. i .x .tr i 7 1./12 Taxi tarY®rt:Gttu41. Ldp rnsuVeva I.artpi1 11,1.41111.$111 I: _ 22_11!,lire $ 95,3133475 f'. 1.I in EtZraulrt+rtn ItrvIr.uc1}tiare IN verttreeerrle iteannied at 1be Net ak,Fadet Ya6loar a iAIO r`tnr,tnbt tr i.m. F'rrynrtic y Niyr i‹t° :Period' th ne.tK Fiquitily'" I3,3 7,i5@ @MI , '4 •"Mars ewe blur PS5rul.Ommle:iedPfii 4`ueri ' X9414,1g, — Muir) 4 IllAyV &&JAI", lour:44 rt 31.64Alitki ttssmlerlw 01)1:layp alnkwilI?iewltne r riallertivolrnwl FulnrIlli 24,137472 ikiii,g iro170t Ii rltrrriftad hedge Fund of Versa" N.214,9153 ,aut,..rly 94 D.4,s fc0,1 roriggrocriii 9 riburred HE ah,r Not Amami le i 'ie i iy hbr'irrt et itae strz+d teat: Trial tnrrm.tmrrin .t Farr 1 .bW 'LE 11.1.e.5.7 t LI Domestic Equities -These funds seek lung -ter -m 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 - I' I Care Illus Band Commingled Trost Fund - weeks to outperform the Barclays Capital U.S. Aggregate Ikrrbd Index by investing primarily in axed income securities in the U.S. inve.stment grade sectors, as well as. U_►- fixed income securities below inves.tmnent grade, the debt of del. ',doped international markets.. and the debt of emerging markets. Redemption emption is daily with al 1 -day notice C11 Real Estate Funds - The portfolio amts in this investment consist primarily of high -quality real estate investments located in major markets throughout the U.S. arid are diversified by propert' type, g graphie region and ecranomi.e sector The majority of the investments are stable. primarily m titre-i5rit rl.ted prapintiew The fair values dale investments in this type have time 1.DB THE METROPOLITAN T. LOUIS SEWER DISTRICT Notes to Fin*r di*i Statments (Conlin u -d). beAN1 diAPrilit14.5CI ILIMilrig the NAY per Shri‘ (or iiti (4iii+r;llent) ( tltr tkyw stRiat::rits. The District has elected to liquidate holdings in the I r"liS i l'I IE II I. .. II Property Fond. Redemption requests from fund investors currently e*c'mvd the for rederapttI o, Bede pti t7a art' calculated on as tiro rata tuisi>:according to the ratio :.f the requesting investor's ttn3taa to the total doll investors then requesting rederrsptaa:wias. rly redemption request tlrot is not fully honored will by derailed cted effective in following qu rrteras until completed, t+a Glebe 'Fixed Intoner 'C'ollective Trost Fond - This food invesits in sovereign debt find currOpkittll of countries in its beriehrrtaark index, the investment.grade corporate bond end rnot°tg -backed securities muskets in those countries, riaa well as, to limited degrees, emerging market, high yield debt, and securities of countries rated A or better . a ritttiona.lis. recognized statistical rating organization. Redemption is daily with ti 1[a -day notice. I.,I Diversified Hedge Fund od' Fund - Seeks return, long-terrn capital growth and diversification through a combination of Managers trading a range of straategie s, including, but not limited to, hedging, distressed securities. arbitrage and special situations. The fair values of the investments in this txye have been determined using the NAla' per share for 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 ored to sell said interest, on a hest effort€a' basis, and distribute and- proceeds to shareholders. /S. Subsequent Events In preparing these financial statements the District has evaluated events and bract as tion fir potential recognition or disclosure through October / 2021, the date the financial statements were available to he issued. The District has authorized the issuance of Wastewater System Refunding RevIAttte Bonds, erie$ 2026A to be issued on May 1, 2026. The par a.rnount of the bends will total $106,930,000 and the boards will be purchased by 'Barclays apit ll Inc, pursuant to the Forward Deliv=ery Rend Purchase Agreement dated October 6, 2021. Upon issuancein the Dii t ri r i F[att$ to we the proceedsi.4 the bonds to refund the outstanding Wastewater System Revenue Bonds, Series 20118C. Page I0:1 'A Cne1/1®Is I,r •I C11 [1.1110eg L i e_'i•L rsneiesn 1 .mei>;I L n rfrd FEc1.euoti Rat111e 1!1 1 r1I;,•!1 of fear 1: /MR E1cec131�+ 3424 2'41 '1 1{110 _{117 2415 -'r15 °4IIa Tout 111v 1Laiwi Liiibiligr : a nirt yhl $ 4...x35 I 4.11 5 @5,1:44 1' I i 5 ,r',I{l; i :r . 4110 In1,.:7 •a 1 1:11 L,e YN1 I Ilr=rwpcn I3111101Rw 1. "�1 2 '4 :1Y 22,'4 a1 'a 10-:41 = 24. 1: 1 W.. 1:1.'r1111 CA F.Jrr,tY: ni Ielr .11eflaiiite. _ - I,Ist. 1:4 1.I icon nrddll♦r'eWli1'11p1Y1f pan* n'r 4h1imM1 1f•,i 7 i 1• .! ',Ili:''. 22,1142) 11 ;292 t fit ::1.1-•60.1 114iT4 of ■rr:lu mlpiiY1{LChllnpea Iir enpidi -- 1 ILA I 1 - 1,1957 1110i'. ...i11+k : L J 1$+ 1111E qumrnanli 1 .2i1,27f11. 1, @', .,;3: 1 Q I F1.12.1.21 2 IL3 1 i1S.,24; l . 1 . - I I .IF.TJ CO lL°I 1"hu+W- ., an. iur I1-'L-11iaAi LLiihIllry 2 ,.,41:1 I. -1.;i,1 r 14 ,5°y" t ZIG `21:'L .Y 1i :r11 I ; x:15 Ir . a Ell ill' ;Dili .c::4.1iti7 3gri,:11a1' II74.#i 1 mho:: t..11.; 1 :7:1 I1Y53 0 trj '.1zr1SArr tU:91 11 .1R4,Ur 3215 ,141414 �. x'1111 9i:0l _' _ II.a La W �1r (MI U12 Nun l'nlvLier+ . %T -I I° gIeill,rn Fr,111a1Lsr -.i.r.111111un+ 12,-.39.11 1,$,7E45 14,4511 1. 9 w ieli,1� Mr 14.1,d1Fi!A 11I,RrR� I IT!'dr rs l ml rd 91atl1r - �- - - RI ill IIiL +. -III1 ii;;;_ r...• tare .II a° r.. ',NIMBIearixa�lle 3i±,11.E , 47:54:1 412.D94401 113-11546 17 .Y1H (1:1l144) I.,N'z_,lj 0C r p l:,r'.• Ir11 ;...;, iii. 11113T II' 1144,41271 414,14E:6 1114Sd1.!•sj 114.2610 114.417i n i1@I.:al,71 S,,I,,,CIrii.Irariv L•t,LN1t LY - _ - - _ °4.•1 1•, h-.Fk1. iii Phiri Id=.1a.®ty� 1411t Pil.it. lritt 77.1. I70 ; 4 I i 17.13613 Y' 966 0.790 ali,.dt, lfl -4,26 1''D IZI 2 111., n 1=• Illu• la 1,, Nri 9'iwr7w r1 it • F5pxrnict 2t44. 4x7 I I 1,1, '377.076 13;5 LINK! 244 .2n , °1 ri Ili 245,245 T 17.1n 4A11111.1frMk314.1a44414m-164411444" ILIA a26 912 21.. 16 .2111 &1}rrii+ 277,376 'L53.030 4.2I2 '*l1a,'.1. r1 MI e.I rep. Io n I."I1i• .1i1)'- Wire ^• 1a, •ik1,lo x • g'.1.I. K. 1' s ':@1- $ I. I.:1'07 $ a:.�; •l::w.i' £ , ';••'l:ci1 ; iainl $ •;'1 tsar t ti 71 I -I 1.4 iml Fret rimy tiiE E'rxaaSlv odasW:Y T 11'1 u111.E.i h Ii1}' aL r� SL .C41.`. 'a ;1", K.1 .1. ' 62 :2"' -., Sla Ii w �1./..1 z:�_ ter. - .: 4••r-; m�'iyll,, 0 C1r'se 1,,i.,I I• r i,criI. InlzslaI 11or in praa 11,1..11 1'4Ts.uail ia ul• 111I' I.In 1-ur foil F`b}nli >F 34Z31 # . 341. 15;1 £ BEI,4.1.1 S 4 CA55 S 12.057! L Iia5 1 X11.61'41 1 Nut l',rirm I 44FulityAi e'.4l'r,.49'ny l to. 711x. I67 41_,_,_, a 415 57k. 1!114,44'. I 41 1a '. MI.:S '. H In :K rl s�fst} 'Srbeti'"11lFr I r L rr' Z 4 r k...i11•e,1r.4.. ... .imF:1.L1 1h..mC mammal Ii.S.hu rl P. IL,°Am! I' I}J•', •4e rritr noirIArpi,rrn m1•no I1r211 rv-ti. -wl 4144 i"5%in x#1141 Ruth ri4t e Eer ie c11+1 illliell Ltl Li. 91". rta 'dI I? hied 1611 6 Willi *rrI' 11 1+' 1 in ' mil Ll�.1a"rd la iliO& )mit ra. likr iiluriellLF Lub1w1 ill r:i:ord vrrtii ,itijlmll41�1 7 9 LU Ri lr P1i11-20,111 4. L ea i-a l .4nlunn4.W`on ,c1*eed }4LtaiialtigTAIL, * ,1134111 O w. 1 in- ;I1wo- I741 Lc -1 En Lk lsierinlirlle.n etairige.c. le =7t1', iJ0m rlewtii nlrLF•.imed4:s Owego of ripl iimpcw-re, I l itte4 1 I'nln1. r4;ngrn g 413, 1 he 11F•Y11 I I '.'I.1ri ni Ii % 6o- i rAmplr -likb awl Finn 'thy Anni_zIalnti 1•rrri flie11rhlnil M ra4e h1v 1ablrle, rlilr 4h42011 r ,xlp:' n rlr: r,lt, ,I Irrimnr- 11y Fii1 *ilium tertmnaati Iii LIu' L'l, F.{FSY1. ra ta gait r'rnpirte r iI n i11CreA1r•.1 nib i.d i1uk will l ltun rl x152'F111,411024 ten r,. 'I triforI116cinti ,irtrlbhl.>- THE METROPOLITAN ST. LOUIS SEWER DISTRICT REQUIRED SUPPLEMENTARY INFORMATION (Continued) SCHEDULE OF EMPLOYER CONTRIBUTIONS TO EMPLOYEES' PENSION PLAN June 30, 2021 selli•ilwl4`if€I it playYY CortTJhulwxn&s I'fr:F:fif lrlfsvfp#.{a' tjfrkrl :inft Pikr>Ia l-•larcat'n`■asr Art asrrani l r ainerilmuinn Claerlfrutimi Endlast Determined Annual Deficiency C otinrd nil CO'• of Aurar 3.q. Ccoiribirtiom C ECribnuticf® (Esaeet l Payroll Covered Payroll L(1,lihrll.DT . 44 rro . 22.41 62,111.9011 s A 29.0 L.i.el :'2.t' 1 J :11,131,369 114, 9sar: 1 4,7 7 I ,,a ';Y — A;S,S0f1,4f7H n,.ia7°s, Nailer to l hradul I. Tliti ldi duIr ultemntsly prevent ten mut of usion:naiion w 1i o nsfahie. 'i u]fsrati n i1ar Actuarially ribudnuu raLw,lrr (Amin -bed lid rif,llamrn.ry I of tbe fiscal yews in wtrit the makrtlsustsont ar,s ruparted Methii{i anal ar qurapCsnnr Lased to tieiermioe ciartrilefaLiarf rates. r'yrternteas1 Coat hirlIt uL Aracsriti•taal ion Method: Afaitit V Luatsor Madifcds liiElpt Iftei Salary frcrc esei Jrr4islitterrt Rat* 'lf J uteau�u Merl alit r. Faee 'rki - N anal Lepi.1 ilnitar ]ntiifrisd_'. ! year pirrml■ l•rriLTsrmfaatlser period •I. % avant • L.ruiurtinx tnll1Liao • Rot of lfolinlfaer plaro otreMlmoo tri twig% 1-I hullo, htifl. Llvii fife 2.02t1 held 202 CNN rtrt isf ira'nition plan intivalreinnt expertise','Muscling inflation for 1/0 1,S rrtrrl 2'11 Li] 7. i, root of prinaian plan:mm.141fmurtt Lixpeefrr;fx irdistLan far nit veArk 10 Z'41f1 Itothr20 1arse'2 nitactuarial, valuations. assumes' tile etlx<toririott writ' initalledusin IJtss 6 •II11141 El's/Ilona .A.mtpuna MiatalYty Tabltr® Rich ixenty*ticaus] iscrocieetisan lfacrrl att -ti,rafs• NIP -2•0121? arifA 21)1 to. rfvi v 1.11e, Ila l IN- 2119,'341 @! anti 2017 oefttarial ✓ alwretina , expectinitriet wen, fsaleuiuteilaxing ,this RP.2ft1.1 Farpluwi ittid Itilati Ja•fra ntlhrr (lin Li.pionniLlarfnl irr+,yor li ii 1fm!''i nog1xAf.ofl ifbrtIfa+ rnawt tum'ri 'hi P Irrrp€ wexnwnt ,.rnlr, whidh id undated annually) and the RI' 2r01.4 liiuuhlr+d Mitrtalltyf Tnb•lfa. Ise 1Jw 1016 and 217] d aebuseistil fativsiiu®tri. anaunied IiJ napettnniatis rrttiree rkharlbni ^ri■irtit;luu ill'-'2Ir iif+a9rl ipiiritrt Mtortallt, Wilt, rla Ow iii'' -'241x1 Dta 1drnl41ortalityTahiss. Pag-e11i THE METROPOLITAN : ST. LOUIS SEWER DISTRICT REQUIREDSUPPLEMENTARY INFORMATION (Continued) SCHEDULE OF CHANGES IN TOTAL OPEE LIABILITY June 30, 2021 Schedule idCh:inge'i Iii. Total OPER [Lability ial 400tra ) Calendar Year lading December 31, 2020 Total OPER Liability 2019 201.5 2017 Senior cost t,'t,w.r, $ 1•.97_ 1,781 $ 1,624 Intemat tm teal °PEES liability Ca I „OI 7 $:6S 896 Effed of plan clan nom 88 Effect of ecoxiatnicidemogTENPhiCgains' r (l at4 — C',1,64t7) — Chnni. reILfsurnptaonsr i rutlrittratit 898 t .6 (987) 4:38 13,4merLt payments (1,6 31) (L,„ ' (L,LA (L* 51 MIL 4:11111 L 113 .ii.i I IRELI1o,alralit}' Total OPF li i ;ilri l i i a• - Be is iiii 1'gtolO1`-EF6IJoibilit} saii4rs 243.165 2.1.1, 1 2':.1.1 "; I 22,Z339 24,921 .s�.r..rr.s.ssss Totes toSchedule: I, Changes of assamptises and co hr.... inputs reflect the directs i'changes in the dlsoonin rate onet, pen d, The following arodips, niIs• u,ae.+dlaiIIIc4Lperiod: 2020 2.12% 2011 2.74% 2018 4.10% 2017 3.44% 201143 3.78% 2. NCI PIPIO tS an' arcurniiiotrsii 3n n trust that TileaS tha miliaria in purrn m ph 4 rya amot Steitormi*n1 to pay mimed benefits. 3. This. arkedule will ult i.rn l eh' IfiTrA want t+ sn y rsa cer information whim ovtrili1k' 4. Contributionut to the OPER plan are not based on s3 enesstkre of pa}, so s ydi ta,, w rats of payroll is priaientrall, $ 24,194 Page 112 StatisticalSection METROPOLITAN ST. LOUIS EWER DISTRICT This part of the District's annual corriprehensive financial report presents detailed. information as a context for understanding what the information in the Iinancid 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 wellbeing have changed over time Revenue Capacity .113-114 These schedules contain information ation to help the render assess the District's most significant local revenue 231:1111 "er the user 11 E 122 Debt Capacity These sche l.ules presentinfor. mat ion to help the reader amess the affardAhility of they District's current level: of outstanding debt and the District's ability to issue additional debt in the future.. _,..,_..........._......: . Demographic And Economic Information .. .123 — 125 These schedules offer demographic and economic indicator,; in help the rands r understand the environment within which the District's financial activities take l.aee - -.. - - _- ....._. 1 i 128 Operating Information These schedules contain service and infrastructure data to help the reader understand how thy information in the District's financial report relates to the services the District provides and the it performs _,._...,.......,..._ ..r. . _...a,199 130 ',51. trees: � ii a otherwi.Ac sued, ttio I.tLFI IJ`UiJ Lrfl i in thk t U:t L'1[11leM 7:i veriVed iron! the ii ]'I L11nJ comprehensive iinericial reportreporta for the relevant year. THE METROPOLITAN ST. LOUIS EAR DISTRICT NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (000' 0 Fiscal Year I .1013 `.'&114 2016a. 241.11 Istaitatition N(1. irivatittn unwell assets rfailtrieted 1...7nri tritted Total Net P itio 1 $ 1,99 21115 106,692 175,910 S 1,877,692 $ 1,X15.:39•1 $ 1,805,,459 S 1.909.396 111,06r) 142. 79,4 142,445 1 a11.547 251,300 279,794 3:30.219 : .11,1 $ 420%903 903 $. 2,20,0r4,1 421$7,$52 $ 2,278,11a $ 2eni,L..M 2017 a X20 i Setrit Set l'isqiiioil Ni!1 I.ti,v4 i[rnelit iii iiipii!: a aN$4..ti 1~. 1.K7f1,249 £ L998.7411 16161 $ 2, I8 -I. sr; $ 2.29.9.304S li t net&l 135.259 129.5779 127,-414 97.034 7.920 rIl rratrict -- t' d1. J! 13SF- .! +i 429.59I. 4r4 ,M,59 x (I.1. Total Het Pi:coitiott $ 2.391.1458 2,441,3M $ ' . ,ti21 $ 2,7711.).,4i29 �+>8 7;,y2 • yF!,nrs 20i Fi IL] int1u ili• at ch2iits. in tILI' t•t51C• to list io1 iL the m 1.. Ix:Nil 11 ill fi:un1 Fualla'tLL c WF'i'id) is Page 113 THE METROPOLITAN T. LOUIS SEWER DISTRICT C HANGES IN NET POSITION LAST TEN FISCAL 1. YEARS t*i iI Opnratlnq 'Dra't. Hew umeni 11.11preati iroz iparatknle Ex rru4e; A-tlaera!F in r (Exprrlxwc..) ;1157„b4$5, 9,991,7.vi 0,4110,4k29 X1.16 !243# 1 i,18 ,9l#3 i fC 4 L, 1;17. 5 24-171,21g ( ., 11F trifs.5211_ 114.4 ;(#.11}1"5.•141 (I;1;,014.74)9 273,005,7 05 46,711e4.026 907 1 7101 7.6741 6 a.4I .;314 40111.11;91 27170.5,2M I dl. +1 d;t7tilE4i,13 1.1 2945,717.11011 1 1.1.5.4153AM I.lN:42943:73,9.3% 14 -7154,I14:3 44145 hiefij t'ip4l1 Li'. ii5@:g a34[I 4:upitr.ibutiq i Cap Fa RI 41•.amri Contratatioris I:,Cr L,131111 7.111141941 I g'.906,154 001.1443 17,2.7.014# 6.390.0117 Valk! $ ; T:N.li41 30,.154.878 21.894,635 3:44 7 K7,495 48.940.113 M.I I41,5$41 1 14.207.281 1;4x.1131.7:5 1 Page 111.1 THE METROPOLITAN ST. LOUIS EWR DISTRICT OPERATING REVENUES BY S I RC 's LAST TAN FISCAL YEARS Reril Year 201 2 20 Ei 2014 20th 2010 :2017 20114 20t40 p 020 S.0.v., r S+, rvic e Ch€ri`gea, Net 211 940,, 257,343,344 2S2 270.192 .U11.$'sa 361, t 75-.204 9a 1x79,933 124.7R13.,54:3 Liotasee, Itix. add Other Fees z 2.610,623 2,7.11,1 111 3,6211240 9,777,200 3.083.458 O12F 1 Other 2M: 1. 1.3,{fK2 14.225. 2,477,7:18 419,ci{1k0,36 d Opera [.1n �{ avenues ii15 p. 211.!4» ,'.tea, 772. 6.53 ;311.&57.7:11 :16R.: 11,477 M1,1214139 Page 175 THE METROPOLITAN ST. LOUIS SEWER DISTRICT OPERATING EXPENSES LAST TEN FISCAL YEARS Fiscal ItI2iployrnent Year Cost s `'i;112 "i )i i 2016 2J17 2018 201 'O2) $ 97,099.07 ,,-.11, 941,0„31 93J49 222 1013.,458,574 1 , #1. 19 105.585.411 111.470.1)4 115,575,521 Utilities 12, 634,274 14.5:11,075 1-1,98 ,387 10,499,964 113,624 ,431 10.70k1..922. 18,151.516 10, 1 , ;1 1,5,770,88. Fiscal 'Year Insurance 2013 4 2,474343 `011 2,737,191 7,,191 2116 2.791.6t2 r'91. ,111°.. 3.219.IJIt '417 :1„2.98, 67 2018 3..3'F1.91d1 X20114 :1,8419,"14 2wp.F,0 •I. t$']i3,.2 0 1i atvriamis and Supplies $ 12,737,240 12.249,397 11.097,857 I2,6,51,1X0 11. 9,551 12.170,78A I1Fi ,i 7 12.446,227' 12,0453J141 13,089, I Contracted Services 26,16,41 33,41711k,844.7 88,875,093 11,,5 18,45 72 .48,502, 5112 18,390,988 52,776.346 Chemical 4a ppiiks 1,46..5, +'2.5 2,446,843 8,964,1 EL5 2,198,798 5i9, 449 2,501,712 :3.667,207 a,123.134. Other SuI tNull. Expenses b4fr,,lr " Ilrep "'aviation Depreciation Tot al Dperamti a, Expenses $ 7,21.1, 11;3 $ 119,€i6i5.901 66.742,064 5 21E307,€311'wa 3,551,760 100.128,6'.44.1 70,029,1,.,in 230.15.8,1:1: .5 ib,;`m,'3:'r 1437.210,42 4,087,2;1, 241,297. 6! :013.021 1 7,..3r9, 78,041,23!..1 250,521,1,;-. 3,023.288 119,1111,E 83,983.749 27:1,1r:05.71 .5,1'_1,7x7 I93,013,284 S1, 1114,3'94 275,lF,,. 5i,159,212 192,488,864 S6.':.2r=. '. 1`s era:3.i'4"sa.2i; 3,1 .068 207.077, 7 ', $$8 84,609,840 .1: x1.1, i 1 ; .5,856,1606 209.108,08411 -1N,' ,:i,`7.' "a Note: 14,211iincv-i in FYI and prior w ri° ru d Eitil in FY49 to strortitely relivea, rcqw,n*t.r61K1 tb appropriate categovy. The majority of the IA an were inerease5 to 1621,001.'mem Costs and 0th decreases tir Materials and Supplies and Contracted ,'vie& and Page 118 THE METROPOLITAN ST. LOUIS SEWER DISTRICT NON-OFE BATING :R EVE DIES AND EX NSES T sT TEN FISCAL YEAR: l'7154',1 I ,',►r N112 2013 1 2ui.-rx 2014 1rroltTr F l i '- L i(-iI Ir 7I„, Tlra@riri :In'p lIQlruacl I1II Pf1I^ Itetn n:nLt other weeny,• Tcwail rim operating rove 24.81:11,170 $ 2 .1'J' 735 S. V_45'r1'Jl9 1,4‘11.4h5 1,056,K16 11115M-19 X15.97 *4..1,SU i11 i aiK 27.31D16..U9 27.3441.264.11 1 X? BAN 27L 124,701. t 1' aFM71,C1 3,r411,5►!511 4.li1k046 al' ta,Sti71 30.-1169. 11* ,1i II i+![fx'fldfl 1nLcrur1< ovine 1 X5,31]€1 21,102,411 2,51.0131.1.21 ff? , 138,5413 22,1113.M. #1 1 tim I w1 dleposa.1 F11111 Mla •fi okpatal tee," 4th .1152,7M A. S21 4.1,24k..4,14, 1.4 1.512C ;124.7113 Nom rEvumill g ln-ryoc d ELMI Hubei 10,d472, f! 4,1K74, aQt.= 12,337,4611 1.1.4.0.5. Itr:I LEVI demur &4I _ TOW raLius inwrizem w Ks.5,411 .. +'+'u,'11 4£ in. gIr. 41.b i -1rJ.4r 1I:6 Nat naniv*rttxlreg rr%tT =4i- >Uet _ I_ irV F1§:ti 9 f]:1,1,1ii;°3'CILII $ i¢ll ?71 Vrrxa] Wray 2017 20118 '291:11$ 'U20 Ifrtrpurty Vries b.ev rit ht the 1313ainri $ 12,$1514.1145.4 $ 47tb,! $ M. LC4_41IFF * ,.1•:LI, 1 11 $ 43,4.12i..412 Inviutirn end, irtraune 2.902.1324 7,485 ,15157 110,1 :4-...1 53 I G.1.:511. 10V. 1.302..27* 7* Retu mut et.ber hltcurti{ aI)U 5i '_tiiy !1 ICAI, lai> --'1-11.. F, i1 :flak.,, . Team9 ricapopexr2tirig msmuttl 3?,..- ill. I II,11;, i ellI.tC '$I,1t. 5. [IJJ4.22',I 16, ;111V412 gutiAttirialltul taue11 lamest emixvise No Ineu nn 'humus] nmtt 414, 4 aimel 41 rrtar++ ,I:N 1 1, 1.51%4 I , •I yki *WANK JI CM urrirlit prevail Gni Wig* 7 4.511 sc15!i w.e 1,3,4%09, 12,4M,2,11 11.811,124 Taal uta'I eratirig e%peri c r ss5. sr1i1 49.R4). 7R9 .0139 09.1-t3. dI 2•X 1,771 Ifa idti,CLWI MA1164364 Oti, d 9'Y.W.: K4114,964 ,1►4' . InDro 1MTSf•'1'Ir§A MLLE, rfixfF:TxaFe1 9 (3,511(1, t 111•0 $ 16,414 %1:161) 1.126419 S. 9.+481 18,5 424.09:14lf71 Ntri,rt 1r1tcHT1bl1 riperwre knerrnwed Ill I Y21 •thke k lht' kITIIILeiti iropir, of GA.1IL Rnterni.9111 I ref, dlrvi urrt'iek liar 1ntaryl CApso .birturrir !' rtripre Me Erarp+n Coiskrarrrrhlien f rinri, remitting Fn III 181wry COO Innrrr.'al ,I, }'S•11 tar.-ng tha 1 i t I tli tatt esperwe in the perind in which it wall incurred Page 117 THE METROPOLITAN ST. LOUIS EWER DISTRICT USER CHARGE. RATES A.N. Cif June 30, 2021 VI Eft c•ri+d Type of Mantle F . Charge rge Illi9meterod Res] cleat lai! A Nan•Rimirleritiaf: "nziewrakmr Limn ('iialrge Barso char Conti pi nee Charge " 'riot" I 'liar 2 Tier 3 Tim 4. Tier Pa Volurmo eturrws per alb Pet raga per waWr cloket per wpliTJAV.ghErwer Extra Far4mgth'{orY hanger; ■ gnii endi'd:#titer ("1581 rwer :WO O mi1ligrernt»: per iilnr Eibsehan'n'cal Oxygtai f749nnnd l .f#3T)-) ln`'irr 54X milligrams. Isar liter Che ni; 7 Oxygen Demand rCOI ovor AN ritiilli i4rrtr ' liter 26,10, S 2x:4{4 26,40 — 4.44 62, lmi . 4 177.60 — — 2-22.00 totem Appl rakalr runts to oco.reskliontittl moitorin,m, nitkro litrvngth : u chairs 2 pr7c>tl per Ian I epee 1_A,4t- r: i irgea for 4 ottaiya low ineom reel:de a,iai tag will kw d the regular Lifter charge S.'trr, elk: I~i'rmmue Lrvvrtar+chnt L&2.67 812.441 44:1116.47 Pale I I f THE METROPOLITAN ST. LOUIS EWER DISTRICT USER CHARGE REVENUES LAST TEN FISCAL YEAR 1:"laicaI Year waJaNtewaa^tea wastewater Cliargm.I .11+ al Clara Col tilt 2012 2D2,425,957 201:3 2:13,8,412,795. 201,1 ` A P,,rs j i,t32`4 t ri 279,535,881 2016 300,803,10M 017 326,43441,1117 20114 :359,628,200 r 2020 425,147, 70'2 C Lleetlon* as or Wastewater Chargv4; Baled 217,3M62:4 2`4 'e. 74% 23: ,W7 . Th 9-9.99% 24 t , 749M, S: G 275,049,684 1)&39% 29%902,808 99.71% : 5t ,11;.V7,2 97_x:'% at -44033,22N 97Ar" i l9, p 18,975 I77% 41717e811 — k; Note; The table HhOWEI the umtru.nt oaf 9,reatewaaia r user charge r owe' which were b �l and collected by the District rut the Nat ten i i ye rs.. Wastewater Charges Med includes wastewater user charge, revennEe billed and accrued. for the year, Wastewater Charges Collected includes ontstewatiztr aaa ar ch, rgo rumilu +s collected far theCarrg.wtin YeAt 41Trid previoug yea3 'age 119 TIE METROPOLITAN ST. LOUIS EWER DISTRICT SEWER USER CHARGES (COMPOS TE-A AL) AST 1. TEN i'1Sci' .r yEA s. Algal Yet ltrwkirmIlul i•zinir -t•Rtail i hat I 6 3-47-+ $ $,711.51} $ 441.$tb $ 441 711 $ 4111.ag. Mulli- ESA 11111 sAitlkt 21Ii5.^sel• r?2t 12 .MOM 4311.114 41141.1413 Cent trinetaliltta' uarrinl Service chanTarUnit = #`3.11111' 4471.517 4771,116 ;1dtl12% cv'9b'_}4tl Iartru . Amor, Liam, Cliame pre Clef :2.11 12g x..130 1,1!,i 3.111 R11.1111 Zia Crr 1 {ih SWrchrTpm 1,13, lover 31110 mi4grumit per triter 4trir4 par toi0 1:311 231 311 23116 2il4.III 3&1:24 DOD river.XRl mini em. per liter i;Twire err lrm) MI14 .1110.1 4 41011.14 ift1(1. H ai;32. COD MIN 1100 nuiLliirrnaat pie 'kit tgtr ce Tarr lea) . 1a°1.417 'Niel rte ',11111,#17 110:1 117 3141, I i) ri4rat VIPA 2417' oian Mk) i%+rIrmllad Lin ig-Farmily(L?rral l F'lle S 611'1 73 I 602.70 $ ikkl F l Nulri• Famm'vi9Jnd .2 oil, -64io itt 16113.711 oft i i."r4r rrerei,e ivilu..'triul Fer-i-fc0 CtutrnOtInit r '..91.1.110 $3. X5.+13 % .1111 rbdietary Heap, 1.lronpr'i 0%4:fpai prr Lid 3.511, 3.!:17 4 411 4.N- Pauli SAT -tiepin lireltrai e i48...tvor;i 'nivlllgn-aml per Itiw* iiirrirr fpn. ratlt •51M./Ma 1;11'7 177 ABU 2Ni1:1s: 11X115 rteilt• :04111 enIl lir i im. p* -r lltr•t !prier ir1 1ilitl &!461111 4171 11=1 .1111 tit 11114 111. - CM 'Nee 'I'VI I n51111 j$ilfis co firer (prior. per long ITTAPIt I5.l 14x1.7F. 151.31 Neter Z43Z3 .,I.• k r1iry:IL ri74 !i t A it; rerr avamp. melte daLyierealairak futility der thrc. broil .rr<9ir 11t4t,l1. r &rwsr_r; Tharp L7nrt tar r'4rnneratttllirrd11atr'rwl LA aloAli1rr.d Iw acing 14111 Fillip ii liclnrurhgvd hmr., it tc r 2ra1a ariptiucEN charg i ?rarting FY $it1',i, AM) lnye rracr di t1 Orr tl".zm plonc. Char ;Rate: Moat rya ales Service Char L; rlet lased en iew,leu at4 weighted artxayncum plantar r'iiar . FY 2141la, VY25a„1&1'Y :tovice dliarproljna 'Lear ruirustedranreflectilinWriglrt,slaverage compininve rhane colonLalamr T'niw car( Nil 3, t r watr mirky ocir frier t^,tlmplranceih©rer + Ordrd amtv,- 13(12:7.. aih k'L ,,FLAIT 1_ 2114113. them: rrunlearltrr n171y r,Elnnlgh 1,`Y MIL Ordinance 1. 1112, rfri w,.511 • 1 'NMI daunted wrueetewat r rofiw khnnl§rh Fh' 2101LL • tlrt4nelrar 4 tel: tiro' July I. A11{11 r4tiragn1 .r4,errmnkrr r14li* t11,Eur$It i`}- 1p. ▪ Orrll■tertrvt I;4#tilt ri'riarerwr 1.1r4111rim p, 211241'.r•irn.t® I!.9I, writ.'r 1111. t.lrarwglw Jnviv 1411, ':r l The f"( l rr1tr. row M•crll+'•l rvllm due Ore II+. 7'l,V r,9 sryiphtreirap 6 erietay' (tutu MY ic ()VI:00ft for t:ftr, F`5''r'1 r AL., 1 m•ilmlydr ilftt+l td the ()VW4-11? pue•A rssv. ▪ i:ii1Ilnrdieti 1nFAtE1. Wroclaw .Pt11!a 1='1113.15. xlw■e.ired.1ilY uwrlar r.1,^,, ehrigllr`h 1r''i1.024. Pure F. Yntaxtcr EILItartmena Page 120 THE METROPOLITAN ST. LOUIS SEWER DISTRICT NUMBER OF CUSTOMERS BY TYPE LAST TEN FISCAL YEARS Single- Multi - Fiscal Family Pearkily Nan- " e. r Residential Residential Residential 2012 2013 2'0131 2016 2016 2017 R1& 2019 yi 360.354 54,243 356,928 359,317 356.926 .166,534 3430.957 361.288 3,61_54 1,648 11,117 40_951 41,131 41,535 41.,354► 41,258 '11,:3G, SOU rte: nor t)i l rirnLail .I, 21,441 24,297 '21_003 244253 24,296 21,095 24.06 Total Account N Total accounts Liam alyave are as of ,lucre 30 for each fisa1year listed, 424_gn" 424. 422_7a S ° 4213.. , 412G.M7l: I2g,. q i' Page 121 TIE METROPOLITAN T. LOUIS SEWER DISTRICT TEN LARGEST CUSTOMER CURRENT YEAR AND NINE YEARS AGO 17.4.co1 Year x.32] 1.bAT Char Customer Amount in Bev _Anheu erTJ s c:h 5, 3 11P City of st. 2A88,772. Sigma -Aldrich 1,839,263 i�iit uu:ra r wrirrii:amrt Water Co. 1328,362 Washington University I , a . LSa. GICN A rc pate N Atnerim Inc _ 1.06-1.64,1 Jost {iL Hatate LLB' 1,064,622 The liotsag Company 1,051, '16 1IC Health System tem 1,034.16] Sc LOWS U i tivera}ity 1348,981 0.11"'x. L.M 4oe. 0.2Ba% 0.-x5% aahl t�a�J {:I1 iorgest) I`�; I-il1�'a Iriui5 ti� hi -1. ti'a6r:I..,An r., Garand totals 1.07, IIj9.1.i1fr, S 125.247.783: 100.00 N S r 1 Year 201 User CIi orges Customer Amount Anha=user-J3usch Waaahin:gtcan University Maat11iwttr dt City ar St. Lcruiaa Cott Lteveragso Zoslogitai Gardens Hoeing 'rii Curh,:iration Sitrtnmr-Aldrich LkPC Systems .1.1-14.5511 1,394,717 1,117,808 9 31, 729 741,';3 7'2 7.8J5, 693,344 546,024 540,757 1.82 ,. 0.33% 0.30% 0.241` Iii` Ftsilp nee l'v rn cach nstArssirro, Grand 'totals 227,13x7.4:10 Page 122 THE METROPOLITAN ST. LOUIS EWER DISTRICT RAT 1r Oh! CIG '1' I'.IL: I"'C\'i,, I11t10. In' TyP ;. 1_. 4T TEN I FECAL, Y EARS :Loud bPPil1.1e 11111111* lrtaeml SuburAiiipig Chit Stmetift A4:albsrdlnwit 111Ii.I I u■ 14:Irmut U1WAPLi I ."14114.1i111 in ChOItr, 111 1I7:1i. 73 ta t. Leo 116,411(11420 P iu; zru„461 11►II,1l [PM C.pGul L .i,nlilri irrd F'r' ni tlmr. Net Alk i Elkorrt, L F'rstuaorl 1 ,40245.11 al I r i',Ilbr.101i a 0142114,11 117 i r1i>a 16* 14 4, In I m:ti:Att :0k iI19[ II -$t4 — dl1E27I.1'44 1 LVILMAISS 1131./ $.V' — Uflial.E 1 1 xxini.4 Pm 3 rgl — 111:,[01,47* 1,.11:; m ill 0.; iik** .101 1 a;9i.9dkiot.it P. 171 fl 4a = llak ttkit li 1,Et11,47 7%1 1 g,' 11.1.44 — 1$4107t4.aca3 ll; iik;."¢y'41 tan t.z** A i+D — 1113; . },S34. t L 1.i}h ai&i 1'41'41c act '1'4+r Capita' rid 311:'11' A Krattigia MI Id I'Mital Awl t9ai 9I,tt papa l4411.141 Iat*,I, C'akula:iim IJ ':t& ■ $hum iiflaui lnrl®sr ICY hr 1®7;1' ISHtmyh'a11i u hams! rra ,r !imat1ed imam Imam /WA! start !#?rF 41.1auirll rWim' and "AA N L#+uxr'# hdi.atarl luo... nts ettIAL0411r., tor§jr1r11', Ilia 1-■.Ci_,elMAA i1 br I'ra a',; t,.r :Itatl 1'i 2111,1'' t rig -la n €n ITIKAA aAdrnritITILII.earrritirmrqrllll! rwretwa y:, 3mmintr a.: Itakri1ilr a 711:=nal -sr isms :amvuTliki*Ikon Ow Itinik-an, reir*IMMI tSaanao- Baal I}iTirnmre Ink+-riatksr S'iatr n, 13haram V Irr.Tamur •4nahvi■, ��?I:. ['Miairtmtsu. rd 1'xmmrriu, and Liu Ll.`5. ernam liLmannau Page THE METROPOLITAN ST. LOUIS SEWER DISTRICT COM PUT.ATIO' ` t ' OVERLIIIPPINCir DEBT As Of June 30. 2021 Government al Unit C Ly , 1. oui p' i I UUI C P Inty Mtmicip+alitie ^ City Fa' iI. IAuuiac � l.rex.el flliitviet l.auiY Schix.d. Or. crick r hr i- t -r rtA Total Buteet Dal Total tlircet arid: Overlikoping INArk eourcias: Debt Outscattdin g 74,1435,00471 C6,775,0111 127..401,115 210,;,1411),01:N.1 I,i ah,7E; ,17'.915 Arnow tit or net,' within District. Boundary Pvrerntram (It Debi within District Boundary 99.2 98:1 11011 913-1 947 22a2111 B84 City of Bt. ,,yy+��LrcFu s., o19a>'c:- ° 'r ntiktvtill�er Fa.,I.0 Low* L_� viaty, 7 c;part ihe'i t: (r7ig4kwItyie;• . Louis. Public Schrwb,, Finmetoaa1Prri user Tii l'ilimourt Deport -nu -tit tit hkit ati a, ,&hoot t imam fi r'a'eannients Plait Fire Disct k:ta .H°-"J.!J: ii..:3rii i.11:1:9 K i :x'31 eeetr- Although the Di6tlnci compritit, all of the St [Amato (At) i' ,1 nom of St. LIANItift Cbtllnty', ii cloit4 na4,.entirely r itr-I, the C ir,tyH boundarie+a The emir IstItue ovtsrtmppFtt}; ‘1,4I,r i' Nom' am the ptperventege that a pitldticaI juriaLliaiete fi te-rri tory lies within the Diildri `.a territory, 7`h yrc-tyltalteles ate weighted again t tI doln esett_Al nchi t bras T,rcm i Iin t hr- , rnrueh.t of d hi within Dial-rici licrantinvy. Page 124 THE METROPOLITAN ST. LOUIS EWER DISTRICT PLEDGED REVENUE "_'OVERAGE 1 1. °1, TEN Fist A I , Y.EARS VCR r 012 X1ION 2015 20116 2017 `tlCF1?3 2019 Opir-! lrtp; It 0. coin 4120 MOM emit Year X12 SIY1'4 2014 2015 111 ;117 2411 2013!1 'Isod Year 2012 2113 2014 2017 i #1 2019 SCii�l7 `4-4,W, 055 N0,597,715 ?1, 444, 401 31A.,4Q.,2 7 ;133.401,077 ; , ,3 62 4ilS,1.1411,1•24 137.062,036 40;11'$ .•: Non. 1rp er t Ln Gra tl Revenuer Revenue% 2, 0,514,344., 2,1170, ; d,66l_r 4 3,864.3315 24500-77 G, O29 L4,4 V1/4.6,119 '4,9at ,1 21.1.164,37 1 267,1 .7 3.1 l 1,, ;31 322_2.57,0W 335.42 6;251 3'74,,648,79 1 4l5,i9.1a,7;041 IRM : Op4.1111 law (e mr1trdina depreciation, (ASS &-. 5.1 1146,;172.41110 153,221,914 1W,ib1.1;11 160,2514„ 133 Ma, 83,5,070 1413, X13 17r ,,rani -ID'S 1.010.647 4154 t62,6183 17,3, ,+6°1 "1-1t4/M- ir;W inratitalai ligeagOW rraiarr iuntl,Sub4FrdiElall' 1_i,rbt ; ervi4a PrI,FIHpu�L 1. 11 1�*�ht t 16,540,201) 10,746,700 10,1)0"1, 4Y 20., Z52,200 5148, 000 38.026, 71711 12,714., . ,Illilt�, Kitt 45:101,1170 IrrivILi pil C Iota 1 Fte L Li', Sertinr t?1<Frt SerViC1 [r,�LUrrxl.t 10, 468_5447 24,4151.1 31,18 1.441 $1,472.4 3111,21 1_319 52 365.46.1 R0_940,89 ,14.,43A.4111 7%74,90502 i: 80.35 t, 611 1.14 111_1,12,71Z I 12,7J:70,207 2.5 119;014144 361,352.4 IS 4&3!.1..:1 L+ ;5th 1102,E 437. ,285 77r941, 1 'I 75.860, 4(113 w"rlveru Jar Hatt iia a4 3 ry2 :3 3.3 20 3L a 7.7 Avail .0 rEe 1tet .nut. l 1wt,r:: -11lr itrril&wkvirtgr Lb.NI to cit/1..0.ir ih& liltt.rr.i1Lil1• r+riult" dad the rims& 'aim Whir bllluaitvl,huut4 GeV pat ;M1'1 a *IA ill wriel u! 7auru toss u.ratrllOtl rat r^u,t,Enrutl4b paffb.wi. TIW MIA clumpy 08 iftedltillukti4V uuuuiLird u0' MOSIVIetil ,rl{iurw (nr,k 1rr,rittii ft -It ti„d rr I4nlvrtml, fr,rtm tr},t.ati* Me r i It Jut, whit nr;w tumt ttlii thaw) milk Ittat l',!'plb t{t 71arr,lblYA srrr•a-a wittlitte. In PliEml 2017 e1'tnwaribankikor Vas Owned eer r^tel dir L3 41 41 laigga�.k ttre,lsyrlif,aa ('ram eha dnl.0 .{heir iii i.n,pr, ralr-+11,+llerel, ierziI'town A1,1irust, ii tl 11n+T twain # li iI u:Piot id#Virir tier GASH ON n4N-ordll.R.rlaivn raapr"11+, In 1ra11 1 H. wmillPdol *RP Fi,lrlultpe l Iln,role* rme1,r!,.IVl ntrrr,ntwo rl Qein4ii p r low-oilownhi Iraq ihi 4.'1 1QITon* r ry i r mlL Mm Pig 125 THE METROPOLITAN ST. LOUIS SEWER DISTRICT DEMOGRAPHIC A+�,'D�ECONOM I S C TA T I S_ I C� t� S�.li E FISCAL YEARS YEW Ivey lopir‘ennal Capita `I'rrtal e,(111tren L'ntrrrapl&riltale J ntO Iitrrmlm PegrM t iI.l 'uertlrrr ill Ilreueyr11+14d S•411Att luuner lsaiiun 2kFC2 1,: I,Pi ;5 ill,1lrir 29. 4 041.741 A1,41`f2 9 7 Wy.4 7.d1 4174,8-49 291.3 1, rbtrl l4"°nfiar 31..19N 114.3..:.1 47,401 lra.l! 7.,i 7.1 419i3O'+ 1[II.I I,:331191Q k'.693 30L026 50339 ,+5,573 9' A R EC .566:200 15 1.319.295 42.179 7 31059 531944 S's, 319 7 1. 5 It 5.8 790437 2916 I , k19.94,7 43,446 UAW 6t &42,2 23 3 53, t68 6.9 4.13 l it 719.321 2017 1,:87411.966 420541 3.71 4.1f1&91, 928 17 3.7 4.9 (19 2.841 18 1.:3::4}:;15$ 441,$48 ;i3.. t .!%:..i72 54..9411 1.1 313 3.5 9149.8412 2-01P1 1.199.703 44.2147 37,1 SO 342.014 K11 '1 4.1 i1.:i al 4111480.49-1 .'07..'21' 1.234,1S1 4irclta 11,159 34.:w.It .I-Iot'+I t_p411 x ':a'1 #i7.;," :SIii :-t': 1,2'1 .:041ta igin- l '7: i1 t-4 T 6..3 .1 x,o 'The. III 11 .441 : rti' tl'MINsiu R91019141 IMcg. rcorrn tothe c. 4L%rh1i1:m vwr,1 fur lk„-0I tit>e20211. `The number ri house hthda wrest iaketa tram http:10www cur_ rfc}uirlklaeuJLacra°®olralra'L1 1:51{i: 3321 figure al baled om :„h"I1r. 1319 443. 21129 lil(Airs og hvsrIJ eaa 114-2018 eial& 221119 NI lommil um 2013,21117 et -A& 21111th rP1n 21)32-2016 r u+ °e�177 u limpad an 201341316 data; WIC 21?5ra.ui95=I date:' !"e 1iltdunlid Ixt" 1 data: 2091 is bauerd an 2912 drteu: :.(:).2.21'e1'i eme InmoLtrn r'!.C115W I.wdinIh . Median I1a11S1 1eld trwcamr,sdrlyd to this richr.fulr is flE{nl ytar 2920 and oll prim. VL TS Updated it) rracIude lhir dal& &' r u: l epc+nul Emmemit Infar°malirm t r1a, l ttnumw +Al l c+xi' mi Amalvrrie, tr. 1.)epurtment Commerce, een.Il $1111711111.k. ithoUre•v trr,,d. lnkr"mt't1crn Cantor 0.4KM) http:i7www.414111.waregiOthelfreiehickerrn Fattluxoe http: www.mers.- mikKatlenumet-pcohloakt,luiena hrttlnJrr'sie tr.,ru ee.:rqor furtalliin1a'tnItt I?•FJ�F. `!"411452.1 ?ige 126 THE METROPOLITAN T. LOUIS SEWER DISTRICT Pfil 1I'•.Al_ EMPLOYEES EST. LOUIS METROPOLITAN AREA) CURRENT FEAR AND NINE EAR X.( Fixed, Yes' 21121 Fiscal Year 211019. "firr a•t-nta ire Fartpkayor Employees offTotal B!JC Beal lime+ 2B V. Washifution I! i 'Pr'ritiy AIL Sk. Wits 11h 'I° Army 1K.,6137 VI. lkettng Optfun4.e: Awe. & geourity lrg4-l1It Seat Air Foamy it 13,,0141. limb 11,441} .a+ -hriuvk NIztrbt,1 I Fk t14i• 1% 4 o1 Loma Urtivwfaile FRS Ps 4'rli: or :.,i4 LYiili AM 1,4 Itps..imil School 135Firict of St. lAsais Comic!, . al 1% Wart Mart Strom laic lvA NJA .;1ThT iik."A NM Urailyd Fogel Bar girt NM _Wilk IS2; 7 Tidal F+.nlplarrrnunt 37 Road, i fp 7 1(I Nzeomage F . " DI Tut r,r DITtutal itank 1.} 52 1149 l L$b 2% 3 (� _, [ l* Id PeN ! I N `';.0 7 ;x:1,74 12t1 51§A "ur/r KropilormA ore fitiii S. lain ar•rsir wliidi irsioitlor r"ungr raspterve4 by Ow Liiiitnort Sources, . L i1A Luaruar,i .pwarrirl'a &a& a Lords 0; xar r,¢. or , °r' .at fir, l ;ti+i l lls�r4L i Ammo:AN 1'1,744)0' List+ Xi tinge 127 THE METROPOLITAN ST. LOUIS III DISTRICT EMPLOYMENT LEVEL LAST TEN FISCAL YEARS .gym iiilirdras5 ire 0I' aital 4 . - Mawr Operation 1,,alwora Erigi'boning & Tlechpirll t ^ rCocultrattion Maiitr4adahre 2411 I;9 2441 ,1 2411 IS 2IW. 2. 12P I21 121 1211 .10,1i 131 127 11 414 442 241 49 SY2 227 Z'4 22N 211 1;e Iii 151 158 1 151 IM le • 3i. I : 201 12-4 '-1, WO MI Tail $ittnpdttr[ is IYZ1 931 ¶b:>!art 949 Noll k 41. lr'1 !x:13 Alr.e: ThIr LAO +1 ►tpkr't 1164K1 allow ere .Fl* o1 am. 'X for each relopective yvivr, .`'arurct-_ IIuerum PAWAITeesi ttmerit Priv 128 THE METROPOLITAN T. LOUIS SEWER DISTRICT AVERAGE FLOW LAST TEST FISCAL YEARS A. i 'i ' 'iwagP Fri +gel Treatment. in Millions Ymit. nib Gallons per Day 2+012 800.0 2083 3215,1 2011 273,8 2]15 2?. a 2016 335.2 2017 828,9 2038 270.1 2019 22,414 2020 367,5 SCHAITE Operations, Department THE METROPOLITAN ST. LOUIS SEWER DISTRICT OPERATING AND CAPITAL INDICATOR LAST TEN FISCAL YEARS f A.ra;1 Year 1 1 grill all 21)1E ibliletn cif ViCifirrP gi736 9,57s 9.563 9531 ; , 7 rm tkutnitur or t reit, tIIIena TOLLeltx 7 7 7 J 7 Tew+rrtrnarrrt, impurity 17itnE)l i 5 126 ISM 6.30 Alumina tarOrbeer•rng III axrnew,n Omit tap/way (rni;lli wr*, ri,1 9f anal L92,029 1.92.1129 1.94.4 ki letS,V9 19279 Aru mint tpmic41 annually crxrilltanw of ga@torxr,1 16E1,538 119,253 3 99„945 119,547 192,380 17 bulled rapacity 15niiiiOnt1at-gallons) &3,111 73,3716 94.6o9 76, 7 2 7;;.913 rVrlxrt.agv: of raJant.y uGntiaarrd 57% a'. -a 51% 01% Fiscal Year Maus Qd aewery Nurrri1hur rdLrouiiiwnt aE!!t!rt 1'cmtme u& etrpaaeay (Phial)) Annual errleinaeeriogt muxirrn►un ;merit capacity Atrxt brat Mated annually a gai rxm) k"rnuNc I fenpaeoty Beni tl of gallon a+l Puree:owe of capacity utilized 2017 9. MO Sea rceti: Op rraIFirnd )epartatLnl; arid Ef r.a?rdriut'tl g nuilialtnera J i Zel ti HIP 010 pti_2 iii..luo 110,400 8,400 a,Ils 7 7 7 M 59:t MI 593 811 2/F,351 216,,ssi 218,351 264.154 96,5,3-1 1447.751 1 ,,`in?: 109:195 119,80 71.000 fLf,1 1'2 10x7„151 1844 6 $ ; CiLr o, Nit nail pi tam pr,.rr 4LJlL• treatment rJrpar ity clurrnpd la rural iyerur 02.1 ea re.Opet primary trr:.rthtL 1 caa.poral.. 1'rnrr yeers relk.es perrrri rie.ti.0 rrc+_tnadary average Ur .t to em canto -tin. Page 1311 MIS u1 cZar wastewater + stormwater 11-E NEFROPCISTAN LOUIS SEVER DI,S1 CT 2350 MARKET STREET sr LOUK FiSSOUR1 63103 314-7 ' WAY,' z: t; fir eiliteitZT roL APPENDIX B Information Regarding the District’s Service Area [ THIS PAGE INTENTIONALLY LEFT BLANK ] B-1 INFORMATION REGARDING THE DISTRICT’S SERVICE AREA The Series 2022B Bonds are special, limited obligations of The Metropolitan St. Louis Sewer District (the “District”) and are not obligations of The City of St. Louis, Missouri (the “City”), St. Louis County, Missouri (the “County”), the State of Missouri (the “State”), or any political subdivision of the City, the County or the State. The Series 2022B Bonds are payable solely from the revenues described in this Official Statement. As described elsewhere in this Official Statement, the service area of the District consists of the City and most of the County. The following information regarding the City and the County has been obtained from sources that the District believes to be reliable, but should not be construed as an indication that the Series 2022B Bonds are payable from any source other than the revenues of the District described in this Official Statement. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS,” “THE DISTRICT,” and “THE CIRP” in this Official Statement. Such information is not guaranteed as to accuracy or completeness by the Underwriters and is not to be construed as a representation by the Underwriters. The Underwriters have not verified this information. No representation is made by the Underwriters as to the accuracy or adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date as to which such information is provided. The delivery of this Official Statement, including this Appendix B, is not intended to create any implication that there has been no change in the affairs of the District, the City or the County since the date hereof or that the information contained or incorporated by reference in this Appendix B is correct as of any time subsequent to its date. THE SERVICE AREA As more fully described in this Official Statement under the caption “THE DISTRICT - General”, the District was created in 1954 pursuant to Article VI, Section 30 of the State Constitution, which empowers the people of the City and the County “to establish a metropolitan district for the functional administration of services common to the area.” The District provides a metropolitan-wide system of wastewater treatment and sanitary sewerage facilities for the collection, treatment and disposal of sewage within the City and most of the more heavily populated areas of the County. When the District began operations, it took over the publicly-owned wastewater and stormwater drainage facilities within its then-existing jurisdiction and began the construction of an extensive system of collector and interceptor sewers and treatment facilities. In subsequent years, voters have approved the District’s annexation of a 270 square mile area of the lower Missouri River and lower Meramec River watersheds in the County, and the District purchased various investor-owned or municipally-operated systems serving areas of the County. The District’s service area now encompasses approximately 520 square miles, including all of the City’s approximately 66 square miles and approximately 454 square miles (approximately 87%) of the County. A map showing the District’s current service area appears on the back cover of this Official Statement. The current population served by the District is approximately 1.3 million representing approximately 428,000 accounts. The City of St. Louis, Missouri The history of the City dates to 1764 when Pierre Laclède and Auguste Chouteau selected the site as a fur trading post due in large part to its proximity to the confluence of the Mississippi and Missouri Rivers. The City was incorporated in 1823, and its current boundaries were established in 1876, when voters approved separation from the County and establishment of a home rule charter. The City is a constitutional charter city not a part of any county, and exists under and pursuant to its Charter and the laws of the State. The eastern boundary of the City is formed by the Mississippi River, and the City is bordered on the north, west and south by the County. The City occupies approximately 66 square miles, all of which lie within the service area of the District. B-2 St. Louis County, Missouri The County was formed by a proclamation of Governor William Clark on October 1, 1812, nine years before Missouri attained statehood in 1821. In 1876, by vote of the entire county (which at the time included both City and County), the City separated itself from the County. The City of Clayton, Missouri is the County seat and located in the east central part of the County. Approximately sixty-six percent of the land area of the County is occupied by approximately 88 self-governing municipalities, containing approximately two-thirds of the County’s population. The remaining unincorporated area comes under the direct jurisdiction of the County government. The County is a constitutional charter county operating and existing under its Charter and the laws of the State. The County covers an area of approximately 524 square miles, approximately 454 square miles of which lie within the service area of the District. ECONOMIC AND DEMOGRAPHIC DATA Population The City and the County are a part of the St. Louis, Missouri-Illinois Metropolitan Statistical Area (the “St. Louis MSA”), comprised of: the City, the County, and the counties of Franklin, Jefferson, Lincoln, St. Charles, and Warren in Missouri; the counties of Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair in Illinois; and a portion of the City of Sullivan located in Crawford County, Missouri. According to the U.S. Census Bureau, the population patterns for the City, the County, and the St. Louis MSA have been as stated directly below. City County St. Louis MSA(1) Percentage Percentage Percentage Year Population Change(2)Population Change(2) Population Change(2) 2010 319,294 - 998,954 - 2,787,701 - 2011 319,417 0.04% 999,961 0.00% 2,795,155 +0.27% 2012 319,387 -0.01 1,000,742 +0.08 2,796,682 +0.05 2013 318,459 -0.29 1,000,471 -0.03 2,799,472 +0.10 2014 317,395 -0.33 1,000,588 +0.01 2,803,430 +0.14 2015 315,878 -0.48 1,001,213 +0.06 2,807,503 +0.15 2016 312,389 -1.10 998,025 -0.32 2,805,502 -0.07 2017 307,866 -1.45 996,648 -0.14 2,805,758 -0.01 2018 302,838 -1.63 996,945 +0.03 2,803,958 -0.06 2019 300,576 -0.75 994,205 -0.27 2,803,228 -0.03 2020 301,578 +0.33 1,004,125 +1.00 2,820,253 +0.61 2021 293,310 -2.74 997,187 -0.69 2,809,299 -0.39 _____________________ Source: U.S. Census Bureau Population for the years 2010 and 2020; Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2019 of the U.S. Census Bureau, Population Division for the years 2011 through 2019; Annual Estimates of the Resident Population: April 1, 2020 to July 1, 2021 of the U.S. Census Bureau, Population Division for year 2021; Annual Estimates of the Resident Population for Metropolitan Statistical Areas in the United States and Puerto Rico: April 1, 2010 to July 1, 2019. (1) Washington County, Missouri was removed from the St. Louis MSA statistics effective retroactively to the 2010 Census. (2) Percentages are rounded to the nearest hundredth. B-3 The largest municipalities within the District’s service area are as set forth in the below table. Population Population Population Municipality 2020 2010 2000 St. Louis (City) 297,645 319,294 348,189 Florissant 50,795 52,158 50,497 Chesterfield 47,570 47,484 46,802 Wildwood 35,460 35,517 32,884 University City 34,049 35,371 37,428 Ballwin 30,094 30,404 31,283 Kirkwood 27,866 27,540 27,324 Maryland Heights 26,895 27,472 25,756 Hazelwood 25,042 25,703 26,206 Webster Groves 22,896 22,995 23,230 ______________ Source: Missouri Census Data Center Employment The below table sets forth information relating to the average composition of employment in the City and the County for the years 2000, 2010, and 2020. County Employment City Employment Industry 2000(1) 2010(2)2020(2)2000(1)2010(2) 2020(2) Agriculture, forestry, fishing and hunting, and mining 1,146 1,719 2,675 419 334 575 Construction 24,817 23,053 22,835 5,652 6,492 5,513 Manufacturing 64,212 51,177 48,985 17,220 12,810 13,627 Wholesale trade 21,290 17,504 15,505 4,062 3,483 3,206 Retail trade 57,061 54,052 52,084 13,903 14,425 14,153 Transportation and warehousing, and utilities 27,141 23,409 23,142 8,405 7,199 8,059 Information 19,021 14,137 11,340 4,587 3,810 3,420 Finance, insurance, real estate, and rental and leasing 45,603 45,095 49,396 9,470 9,382 10,504 Professional, scientific, management, administrative, and waste management services 56,101 59,328 64,426 13,991 16,308 18,301 Educational, health and social services 109,440 118,122 129,695 33,767 39,514 45,654 Arts, entertainment, recreation, accommodation and food services 38,345 43,743 41,601 15,045 18,285 19,217 Other services (except public administration) 24,398 22,837 23,155 8,486 7,275 8,318 Public administration 16,675 15,325 15,072 8,843 7,836 6,875 Total: 505,250 489,501 499,911 143,850 147,153 157,422 (1) Source: U.S. Census Bureau, 2000 Decennial Census. (2) Source: American Community Survery 5-Year Estimates Data Profiles. B-4 The below table sets forth the total labor force, number of employed and unemployed workers in the City and the County, for 2012 through 2021. City(1) County(1) Labor Force Labor Force Year Employed Unemployed Total Employed Unemployed Total 2012 146,076 14,052 160,128 488,787 35,009 523,796 2013 145,939 13,403 159,342 489,821 32,941 522,762 2014 147,413 12,146 159,559 496,520 30,814 527,334 2015 148,980 9,830 158,810 505,340 25,031 530,371 2016 148,669 8,529 157,198 508,770 22,294 531,064 2017 147,268 6,869 154,137 507,484 18,116 525,600 2018 145,297 5,871 151,168 510,372 15,859 526,231 2019 146,448 5,877 152,325 516,814 16,206 533,020 2020 139,334 12,958 152,292 491,901 32,820 524,721 2021 143,249 7,810 151,058 510,671 19,909 530,580 _________________________________________ Source: Missouri Local Area Unemployment Statistics (LAUS) as produced by Missouri Economic Resource and Information Center (MERIC) in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics. (1)Figures are annual averages based on estimates and are not seasonally adjusted. The below table sets forth unemployment rates for the City, County, State and the United States of America (the “Country”) for 2012 through 2021. Unemployment Rates Fiscal Year City(1) County(1) State (1)Country(2) 2012 9.7% 6.9% 7.0% 8.5% 2013 10.5 7.3 7.1 7.8 2014 9.6 6.9 6.6 6.8 2015 7.1 5.5 5.8 5.7 2016 5.9 4.6 4.9 5.0 2017 4.7 3.7 4.9 4.7 2018 4.3 3.3 3.5 4.1 2019 4.3 3.3 3.3 3.8 2020 12.0 8.9 7.9 6.0 2021 7.4 5.3 5.1 6.9 _______________________________________ (1) Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020. (2) Source: United States Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, Seasonally Adjusted as of June 30. B-5 Principal Employers The below table sets forth the names and approximate number of employees of principal employers within the St. Louis area as of June 2021. St. Louis MSA Principal Employers Company Nature of Business Approximate Number of Employees(1) BJC HealthCare Healthcare 29,660 Washington University in St. Louis Education 18,488 Mercy Healthcare 15,587 Boeing Defense, Space & Security Manufacturing 15,418 Scott Air Force Base Government 13,000 SSM Health Healthcare 11,446 Schnuck Markets Inc. Retail 9,576 Saint Louis University Education 6,636 The City of St. Louis, Missouri Government 6,625 Special School District of St. Louis County Education 6,151 ____________________ Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020. (1) Employees are for the St. Louis area, which includes several counties not served by the District. [The remainder of this page is intentionally left blank.] B-6 Per Capita Personal Income The below table presents per capita personal income for the District, the State and the Country for the years 2012 through 2021, the latest date for which such information is available. District(2) State(3) Country(3) Year(1) Per Capita Personal Income Per Capita Personal Income Per Capita Personal Income 2012 $29,490 $40,308 $44,528 2013 31,105 40,565 44,760 2014 30,026 41,955 46,859 2015 31,969 43,316 48,694 2016 32,482 44,400 49,588 2017 32,705 45,375 51,551 2018 33,897 47,225 53,851 2019 37,150 48,914 55,744 2020 37,159 51,656 59,161 2021 38,918 55,149 63,444 _______________________________________ Source: District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020; and Federal Reserve Bank of St. Louis and U.S. Bureau of Economic Analysis, Per Capita Personal Income in Missouri and Personal Income Per Capita, retrieved from FRED, Federal Reserve Bank of St. Louis. (1) Figures are presented on a fiscal-year basis for the District and on a calendar-year basis for the State and the Country. (2) In the District’s Annual Comprehensive Financial Report Fiscal Years Ended June 30, 2021 and 2020, the data in Fiscal Years 2012-2019 were restated to conform to the calculation used for Fiscal Year 2020. (3) Figures for 2012-2020 are based on the seasonally adjusted average annual rate. Figures for 2021 are based on the seasonally adjusted annual rate, as of on or about October 1, 2021. *** APPENDIX C Definitions and Summaries of Certain Provisions of the Bond Ordinance and the Continuing Disclosure Agreement [ THIS PAGE INTENTIONALLY LEFT BLANK ] C-1 The following is a brief summary of certain provisions of the Master Bond Ordinance adopted by the District on April 22, 2004, as supplemented by Ordinance No. 15906 adopted by the District on May 12, 2022 authorizing the issuance of the Series 2022B Bonds (the “Bond Ordinance”). This summary is not to be considered as a full statement of the provisions of such documents and is qualified by reference to and is subject to the complete Bond Ordinance, copies of which may be obtained from PFM Financial Advisors, LLC or Independent Public Advisors, LLC, as Co-Financial Advisors to the District. After delivery of the Series 2022B Bonds, copies of such documents will be available for inspection at the corporate trust office of the Paying Agent in St. Louis, Missouri or at such other office as shall be designated by the Paying Agent. DEFINITIONS The definitions of certain words and terms used in this Official Statement with respect to the Series 2022B Bonds are set forth below: “Accumulation Payments” shall have the meaning ascribed therefor under the caption “Sinking Fund – Debt Service Reserve Account” in this Appendix C. “Additional Interest” means, for any period during which any Pledged Bonds are owned by a Credit Facility Provider pursuant to a Credit Facility or Credit Facility Agreement, the amount of interest accrued on such Pledged Bonds at the Pledged Bond Rate less the amount of interest which would have accrued during such period on an equal Principal amount of Bonds at the Bond Rate. “Annual Budget” means the annual budget of the District relating to the System (which shall include all costs, obligations and expenses properly allocable to the System), as amended or supplemented in accordance with established procedures of the District, adopted or in effect for a particular Fiscal Year. “Bond Counsel” means any firm of nationally recognized bond counsel experienced in matters relating to tax-exempt financing, appointed by the District. “Bond Ordinance” means the Master Bond Ordinance adopted by the Board of Trustees of the District on April 22, 2004 and the Ordinance adopted by the Board of Trustees of the District on May 12, 2022 authorizing the issuance of the Series 2022B, as the same may from time to time be modified, supplemented or amended by Supplemental Ordinances. “Bond Rate” means the rate of interest per annum payable on specified Bonds other than Pledged Bonds. “Bond Register” means the books for the registration, transfer and exchange of Bonds maintained by the Bond Registrar. “Bond Registrar” means any bank or trust company designated as such by the District in the Bond Ordinance with respect to any of the Bonds. Such Bond Registrar shall perform the duties required of the Bond Registrar in the Bond Ordinance. UMB Bank, N.A. has been designated as Bond Registrar for the Bonds; provided, however, that in connection with the issuance of any SRF Bonds, the District shall appoint such separate Bond Registrar designated by the issuer of the SRF Bonds. “Bondholder” means the registered owner of one or more Bonds. C-2 “Bonds” means any revenue bonds authorized by and authenticated and delivered pursuant to the Bond Ordinance, including the Series 2022B Bonds, any other Senior Bonds, and any Subordinate Bonds. “Business Day” means a day other than a Saturday, Sunday or holiday on which the Paying Agent, Bond Registrar or applicable Credit Facility Provider is scheduled in the normal course of its operations to be open to the public for conduct of its banking operations. “Charter” means the District’s Charter (Plan) approved by the voters of the City of St. Louis, Missouri and St. Louis County, Missouri on February 9, 1954 and amended on November 7, 2000, June 5, 2012 and April 6, 2021, and as further amended from time to time in accordance with its terms. “Chief Financial Officer” means the individual presently holding the office of Secretary-Treasurer of the District or the individual presently holding the office of Assistant Secretary-Treasurer of the District, and any successors who might hereafter hold either such office, and any individual, body or authority to whom or to which may hereafter be delegated by law the duties, powers, authority, obligations or liabilities of either such office. “Chief Officer” means the individual presently holding the office of Executive Director or Acting Executive Director of the District as appointed by the Governing Body and any successor who might hereafter hold such office, and any individual, body or authority to whom or which may hereafter be delegated by law the duties, powers, authority, obligations or liabilities of such office. “Code” means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the Treasury Department proposed or promulgated thereunder. “Consultant” means an independent engineer or utility consultant or firm of independent engineers or utility consultants experienced in the planning and management of wastewater systems and having a nationally recognized reputation for such work. “Continuing Disclosure Agreement” means (i) with respect to the Series 2022B Bonds, the Disclosure Dissemination Agent Agreement dated as of June 1, 2022 between the District and Digital Assurance Certification, L.L.C., as Dissemination Agent, as amended from time to time in accordance with its terms, in substantially the form attached as an exhibit to the Bond Ordinance, and (ii) with respect to any other series of Bonds, the continuing disclosure agreement relating to such series of Bonds, as amended from time to time in accordance with its terms. “Costs,” with respect to any Project, means the total cost, paid or incurred, to study, plan, design, finance, acquire, construct, reconstruct, renovate, repair, replace, equip, install, or otherwise develop such Project and shall include, but shall not be limited to, the following costs and expenses relating to such Project and the reimbursement to the District for any such items previously paid by the District: (i) the cost of all lands, real or personal properties, rights, easements, and franchises acquired; (ii) the cost of all machinery and equipment, financing charges, and interest prior to and during construction and for six months after completion of construction; (iii) the cost of the acquisition, construction, reconstruction or installation of such Project; C-3 (iv) the cost of engineering, architectural, development and supervisory services, fiscal agents’ and legal expenses, plans and specifications, and other expenses necessary or incident to determining the feasibility or practicability of any Projects, administrative expenses, and such other expenses as may be necessary or incident to any financing by Bonds; (v) the cost of placing such Project in operation; (vi) the cost of condemnation of property necessary for such construction and operation; (vii) Costs of Issuance; and (viii) any other costs which may be incident to such Project. “Costs of Issuance” means issuance costs with respect to the Bonds, including but not limited to the following: underwriters’ spread (whether realized directly or derived through purchase of Bonds at a discount below the price at which they are expected to be sold to the public), management fee and expenses; Credit Facility fees and Reserve Account Credit Facility fees; counsel fees (including Bond Counsel, underwriter’s counsel, District’s counsel, as well as any other specialized counsel fees incurred in connection with the borrowing); financial advisor fees of any financial advisor to the District incurred in connection with the issuance of the Bonds; rating agency fees; escrow agent and paying agent fees; accountant fees and other expenses related to issuance of the Bonds; printing costs (for the Bonds and of the preliminary and final official statement relating to the Bonds); and fees and expenses of the District incurred in connection with the issuance of the Bonds. “Credit Facility” means any letter of credit, insurance policy, guaranty, surety bond, standby bond purchase agreement, line of credit, revolving credit agreement, or similar obligation, arrangement, or instrument issued by a bank, insurance company, or other financial institution which is used by the District to perform one or more of the following tasks: (i) enhancing the District’s credit by assuring owners of any of the Bonds that Principal of and interest on such Bonds will be paid promptly when due; (ii) providing liquidity for the owners of Bonds through undertaking to cause Bonds to be bought from the owners thereof when submitted pursuant to an arrangement prescribed by a Series Ordinance; or (iii) remarketing any Bonds so submitted to the Credit Facility Provider (whether or not the same Credit Facility Provider is remarketing the Bonds). The term Credit Facility shall not include a Reserve Account Credit Facility. “Credit Facility Agreement” means an agreement between the District and a Credit Facility Provider pursuant to which the Credit Facility Provider issues a Credit Facility and may include the promissory note or other instrument evidencing the District’s obligations to a Credit Facility Provider pursuant to a Credit Facility Agreement. The term Credit Facility Agreement shall not include a Reserve Account Credit Facility Agreement. “Credit Facility Provider” means any issuer of a Credit Facility then in effect for all or part of the Bonds. The term Credit Facility Provider shall not include any Reserve Account Credit Facility Provider. Whenever in the Bond Ordinance the consent of the Credit Facility Provider is required, such consent shall only be required from the Credit Facility Provider whose Credit Facility is issued with respect to the series of Bonds for which the consent is required. “Debt Service Requirement” means the total Principal and interest coming due on Senior Bonds, or all Bonds, as applicable, whether at maturity or upon mandatory redemption, in any specified period; provided, however, that (i) Debt Service Requirement with respect to SRF Bonds shall mean the C-4 net amount of Principal and interest coming due on such SRF Bonds after taking into account any so- called “SRF Subsidy” (i.e., the amount of anticipated investment earnings which will accrue on any reserve account relating to the SRF Bonds and which will reduce the debt service payments of the District with respect to such SRF Bonds), and (ii) Debt Service Requirement with respect to Bonds issued as “build America bonds” shall mean the net amount of Principal and interest coming due on such Bonds after taking into account the anticipated receipt of U.S. Treasury Interest Subsidy payments on such Bonds. If any Bonds Outstanding or proposed to be issued shall bear interest at a Variable Rate, the interest coming due in any specified future period shall be determined as if the Variable Rate in effect at all times during such future period equaled the average of the BMA Municipal Bond Index (formerly PSA Municipal Bond Index) for the prior 5 calendar years, or any successor index as certified by a Financial Advisor. With respect to any Bonds secured by a Credit Facility, Debt Service Requirement shall include (i) any upfront or periodic commission or commitment fee obligations with respect to such Credit Facility, (ii) the outstanding amount of any Reimbursement Obligation owed to the applicable Credit Facility Provider and interest thereon, (iii) any Additional Interest owed on Pledged Bonds to a Credit Facility Provider, and (iv) any remarketing agent fees. With respect to any Hedged Bonds, the interest on such Hedged Bonds during any Hedge Period and for so long as the provider of the related Hedge Agreement has not defaulted on its payment obligations thereunder shall be calculated by adding (x) the amount of interest payable by the District on such Hedged Bonds pursuant to their terms and (y) the amount of Hedge Payments payable by the District under the related Hedge Agreement and subtracting (z) the amount of Hedge Receipts payable by the provider of the related Hedge Agreement at the rate specified in the related Hedge Agreement; provided, however, that to the extent that the provider of any Hedge Agreement is in default thereunder, the amount of interest payable by the District on the related Hedged Bonds shall be the interest calculated as if such Hedge Agreement had not been executed. In determining the amount of Hedge Payments or Hedge Receipts payable or receivable for any future period which are not fixed throughout the Hedge Period (i.e., which are variable), such Hedge Payments or Hedge Receipts for any period of calculation (the “Determination Period”) shall be computed by assuming that the variables comprising the calculation (e.g., indices) applicable to the Determination Period are equal to the average of the actual variables which were in effect (weighted according to the length of the period during which each such variable was in effect) for the most recent twelve-month period immediately preceding the date of calculation for which such information is available (or shorter period if such information is not available for a twelve-month period). The Principal of and interest on Bonds and Hedge Payments shall be excluded from the determination of Debt Service Requirement to the extent that (1) the same were or are expected to be paid with amounts on deposit on the date of calculation (or Bond proceeds to be deposited on the date of issuance of proposed Bonds) in the Project Fund, the Sinking Fund or a similar fund for Subordinate Bonds or (2) cash or non-callable Government Securities are on deposit in an irrevocable escrow or trust account in accordance with the provisions of the Bond Ordinance (or a similar escrow or trust account for Subordinate Bonds) and such amounts (including, where appropriate, the earnings or other increment to accrue thereon) are required to be applied to pay Principal or interest and are sufficient to pay such Principal or interest. “Debt Service Reserve Account” means the account by that name within the Sinking Fund established in the Bond Ordinance. “Debt Service Reserve Requirement” means an amount determined from time to time by the District as a reasonable reserve for the payment of Principal of and interest on Senior Bonds which are not Senior SRF Bonds or Senior Uncovered Bonds. On the date of issue of a series of Senior Bonds, this amount shall be the least of (a) 10% of the stated Outstanding Principal amount of the Senior Bonds which are not Senior SRF Bonds or Senior Uncovered Bonds, (b) the maximum annual Principal and interest requirements (taking into account the anticipated receipt of U.S. Treasury Interest Subsidy payments on the Series 2010B Bonds) on the Senior Bonds which are not Senior SRF Bonds or Senior Uncovered Bonds (determined as of the issue date of each series of Senior Bonds which are not Senior C-5 SRF Bonds or Senior Uncovered Bonds), or (c) 125% of the average annual Principal and interest requirements (taking into account the anticipated receipt of U.S. Treasury Interest Subsidy payments on the Series 2010B Bonds) on the Senior Bonds which are not Senior SRF Bonds or Senior Uncovered Bonds (determined as of the issue date of each series of Senior Bonds which are not Senior SRF Bonds or Senior Uncovered Bonds). The District may in its sole discretion change, reduce or increase this amount from time to time by Supplemental Ordinance, but in no event may the District reduce this amount (A) below the greater of (1) while the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds or the Series 2013B Bonds are Outstanding, the least of (x) the aggregate of 10% of the stated Outstanding Principal amounts of the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds and the Series 2013B Bonds, (y) the aggregate of the maximum annual Principal and interest requirements on the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds and the Series 2013B Bonds (taking into account the anticipated receipt of U.S. Treasury Interest Subsidy payments on the Series 2010B Bonds) (determined as of their respective issue dates), or (z) the aggregate of 125% of the average annual Principal and interest requirements on the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds and the Series 2013B Bonds (taking into account the anticipated receipt of U.S. Treasury Interest Subsidy payments on the Series 2010B Bonds) (determined as of their respective issue dates), or (2) 50% of the average annual Debt Service Requirement with respect to Senior Bonds (other than Senior SRF Bonds and Senior Uncovered Bonds) in the then current or any succeeding Fiscal Year, and (B) unless each Rating Agency indicates in writing to the District that such reduction will not, by itself, result in a reduction or withdrawal of its current Rating on the Senior Bonds. If the aggregate initial offering price of a series of Bonds to the public is less than 98% or more than 102% of par, such offering price shall be used in lieu of the stated Principal amount. Notwithstanding anything in the Bond Ordinance to the contrary, (1) when all or a portion (the “Refunding Portion”) of a series of Senior Bonds is issued to refund a portion of a series of Outstanding Senior Bonds (the “Refunded Series”), the annual Principal and interest requirements to be used for purposes of clauses (b), (c), (A)(1)(y) and (A)(1)(z) above shall not include both the Principal and interest requirements of the Refunding Portion and the Refunded Series, but instead shall be, as between the Refunding Portion and the Refunded Series, the one that, when added to the Principal and interest requirements for all other Senior Bonds included in such computation, results in the greatest aggregate amount; (2) in no event shall the deposit to the Debt Service Reserve Requirement for each series of Senior Bonds exceed an amount permitted for a reasonably required reserve fund under the Code; and (3) the Debt Service Reserve Requirement, if any, in connection with any Senior SRF Bonds or any Subordinate Bonds, including Subordinate SRF Bonds, shall be as provided in the Series Ordinance authorizing the issuance of such Senior SRF Bonds or such Subordinate Bonds. “Depository” means the depository of each fund established under the Bond Ordinance, and any successor depository of such fund hereafter designated by the District from time to time by Supplemental Ordinance. The Depository for the Senior Bonds is U.S. Bank, N.A., St. Louis, Missouri. “District” means The Metropolitan St. Louis Sewer District, a body corporate, a municipal corporation and a political subdivision duly created and existing under the laws of the State, and any successor thereto. “DTC” means The Depository Trust Company, New York, New York, or its nominee, or its successors and assigns, or any other depository performing similar functions under the Bond Ordinance. “Event of Default” means any of the events defined as such in the Bond Ordinance. “Expenses of Operation and Maintenance” means all expenses reasonably incurred in connection with the operation, maintenance and repair of the System, including salaries, wages, the cost of materials and supplies, rentals of leased property, if any, management fees, payments to others for the C-6 treatment and disposal of sewage, the cost of audits and periodic Consultant’s reports, Paying Agent’s and Bond Registrar’s fees and expenses, payment of premiums for insurance required by the Bond Ordinance and other insurance which the District deems prudent to carry on the System and its operations and personnel, obligations (other than for borrowed money or for rents payable under capital leases) incurred in the ordinary course of business, liabilities incurred by endorsement for collection or deposit of checks or drafts received in the ordinary course of business, short-term obligations incurred and payable within a particular Fiscal Year, other obligations or indebtedness incurred for the purpose of leasing (pursuant to a true or operating lease) equipment, fixtures, inventory or other personal property, and, generally, all expenses, exclusive of interest on the Bonds and depreciation or amortization, which under accounting principles generally accepted for municipal utility purposes are properly allocable to operation and maintenance; however, only such expenses as are reasonable and necessary or desirable for the proper operation and maintenance of the System shall be included. “Expenses of Operation and Maintenance” also includes the District’s obligations under any contract with any other political subdivision or public agency or authority of one or more political subdivisions pursuant to which the District undertakes to make payments measured by the expenses of operating and maintaining any facility which constitutes part of the System and which is owned or operated in part by the District and in part by others. “Financial Advisor” means an investment banking or financial advisory firm, commercial bank, or any other Person who or which is appointed by the District for the purpose of passing on questions relating to the availability and terms of specified types of Bonds and is actively engaged in and, in the good faith opinion of the District, has a favorable reputation for skill and experience in underwriting or providing financial advisory services in respect of similar types of securities. “Fiscal Year” means the 12-month period used by the District for its general accounting purposes, as it may be changed from time to time. The Fiscal Year at the time the Bond Ordinance was adopted begins on July 1 and ends on June 30 of the immediately following calendar year. “Fitch” means Fitch, Inc. or, if such corporation is dissolved or liquidated or otherwise ceases to perform securities rating services, such other nationally recognized securities rating agency as may be designated in writing by the District. At the time the Bond Ordinance was adopted, the notice address of Fitch is One State Street Plaza, New York, New York 10004. “Forecast Period” means a period of three consecutive Fiscal Years commencing with the Fiscal Year in which any proposed Senior Bonds are to be issued. “Governing Body” means the Board of Trustees of the District and any predecessor or successor in office to such present body, and any Person to whom or which may hereafter be delegated by law the duties, powers, authority, obligations, or liabilities of the present body, either in whole or in relation to the System. “Government Loans” means loans to the District by the government of the United States or the State, or by any department, authority or agency of either, for the purpose of acquiring, constructing, reconstructing, improving, bettering or extending any part of the System. “Government Obligations” means (a) direct obligations of the United States of America for the full and timely payment of which the full faith and credit of the United States of America is pledged or (b) obligations issued by a person controlled or supervised by and acting as an instrumentality of the United States of America, the full and timely payment of the principal of and the interest on which is fully and unconditionally guaranteed as a full faith and credit obligation of the United States of America (including any securities described in (a) or (b) issued or held in book-entry form on the books of the Department of the Treasury of the United States of America), which obligations, in either case, (i) are not C-7 subject to redemption or prepayment prior to maturity except at the option of the holder of such obligations and (ii) may include U.S. Treasury Trust Receipts. “Hedge Agreement” means, without limitation, (i) any contract provided by a Qualified Hedge Provider known as or referred to or which performs the function of an interest rate swap agreement, currency swap agreement, forward payment conversion agreement, or futures contract; (ii) any contract provided by a Qualified Hedge Provider providing for payments based on levels of, or changes or differences in, interest rates, currency exchange rates, or stock or other indices; (iii) any contract provided by a Qualified Hedge Provider to exchange cash flows or payments or series of payments; (iv) any type of contract provided by a Qualified Hedge Provider called, or designed to perform the function of, interest rate floors, collars, or caps, options, puts, or calls, to hedge or minimize any type of financial risk, including, without limitation, payment, currency, rate, or other financial risk; and (v) any other type of contract or arrangement provided by a Qualified Hedge Provider that the District determines is to be used, or is intended to be used, to manage or reduce the cost of any Bonds, to convert any element of any Bonds from one form to another, to maximize or increase investment return, to minimize investment return risk, or to protect against any type of financial risk or uncertainty. “Hedge Contingency Payments” means amounts payable by the District pursuant to any Hedge Agreement as termination payments, fees, expenses and indemnity payments. “Hedge Payments” means amounts payable by the District pursuant to any Hedge Agreement, other than Hedge Contingency Payments. “Hedge Period” means the period during which a Hedge Agreement is in effect. “Hedge Receipts” means amounts payable by any provider of a Hedge Agreement pursuant to such Hedge Agreement, other than termination payments, fees, expenses and indemnity payments. “Hedged Bonds” means any Bonds for which the District shall have entered into a Hedge Agreement. “Independent Certified Public Accountant” means a certified public accountant, or a firm of certified public accountants, who or which is “independent” as that term is defined in Rule 101 and related interpretations of the Code of Professional Ethics of the American Institute of Certified Public Accountants, of recognized standing, who or which does not devote his or its full time to the District (but who or which may be regularly retained by the District). “Interest Payment Date” means each date on which interest is to become due on any Bonds, as established in the Series Ordinance for such Bonds, and with respect to the Series 2022B Bonds, shall be as specified in the Bond Ordinance. “Investment Earnings” means all interest received on and profits derived from investments of moneys in all funds and accounts of the District other than investments derived from or with respect to (a) stormwater revenues, (b) all funds and accounts established in connection with SRF Bonds and (c) obligations issued by the District on behalf of any of its subdistricts. “Maximum Annual Debt Service” means the maximum amount of Debt Service Requirements as computed for the then current or any future Fiscal Year. “Moody’s” means Moody’s Investors Service, Inc. or, if such corporation is dissolved or liquidated or otherwise ceases to perform securities rating services, such other nationally recognized C-8 securities rating agency as may be designated in writing by the District. At the time the Bond Ordinance was adopted, the notice address of Moody’s is 99 Church Street, New York, New York 10007. “Net Operating Revenues” means Operating Revenues, after provision for payment of all Expenses of Operation and Maintenance. “Operating Revenues” means all income and revenue of any nature derived from the operation of the System, including periodic wastewater billings, service charges, other charges for wastewater service and the availability thereof (other than any special assessment proceeds), connection or tap fees (whether accounted for as revenues or as contributed capital), net proceeds from business interruption insurance, the principal of gifts, bequests, contributions, grants and donations available to pay debt service of Bonds, and any amounts deposited in escrow in connection with the acquisition, construction, remodeling, renovation and equipping of facilities to be applied during the period of determination to pay interest on Bonds, but excluding (a) any profits or losses on the early extinguishment of debt or on the sale or other disposition, not in the ordinary course of business, of investments or fixed or capital assets, and local, state or federal grants or other moneys received for the payment of Expenses of Operation and Maintenance, (b) local, state, or federal grants, loans (including Government Loans), capital improvement contract payments, or other moneys received for capital improvements to the System, (c) Investment Earnings, (d) any stormwater charges and (e) any property tax revenues. “Other System Obligations” means obligations of any kind, including but not limited to, Government Loans, general obligation bonds, revenue bonds, capital leases, installment purchase agreements, or notes (but excluding Bonds and related obligations to Credit Facility Providers, Reserve Account Credit Facility Providers and Qualified Hedge Providers), incurred or issued by the District to finance or refinance the cost of acquiring, constructing, reconstructing, improving, equipping, bettering, or extending any part of the System. “Outstanding” means, when used in reference to Bonds, all Bonds which have been duly authenticated and delivered under the Bond Ordinance, with the exception of (a) Bonds in lieu of which other Bonds have been issued under agreement to replace lost, mutilated, stolen, or destroyed obligations, (b) Bonds surrendered by the owners in exchange for other Bonds under the Bond Ordinance, and (c) Bonds for the payment of which provision has been made in accordance with the Bond Ordinance. “Paying Agent” means any bank or trust company, including any successors and assigns thereof, authorized by the District in the Bond Ordinance to pay the Principal of, premium, if any, or interest on any Bonds on behalf of the District. Such Paying Agent shall perform the duties required of the Paying Agent in the Bond Ordinance. UMB Bank, N.A. is designated as Paying Agent for the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds, the Series 2013B Bonds, the Series 2015B Bonds, the Series 2016C Bonds, the Series 2017A Bonds, the Series 2019B Bonds, the Series 2019C Bonds, the Series 2020B Bonds, the Series 2021C Bonds, the Series 2022A Bonds and the Series 2022B Bonds. “Payments Account” means the account by that name within the Sinking Fund established in the Bond Ordinance. “Permitted Investments” means obligations in which the District is permitted to invest moneys of the District pursuant to applicable law, which have (or are collateralized by obligations which have) a Rating by any Rating Agency which is equal to or greater than the third highest long-term Rating of such Rating Agency, or which bears (or are collateralized by obligations which bear) the second highest short- term Rating of such Rating Agency. As of the date of adoption of the Master Bond Ordinance, C-9 obligations in which the District is permitted to invest proceeds of Bonds are described in Section 7.020 of the Charter. “Person” or “person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization, body, authority, government, or agency or political subdivision thereof. “Pledged Bond” means any Bond purchased and held by a Credit Facility Provider pursuant to a Credit Facility Agreement. A Bond shall be deemed a Pledged Bond only for the actual period during which such Bond is owned by a Credit Facility Provider pursuant to a Credit Facility Agreement. “Pledged Bond Rate” means the rate of interest payable on Pledged Bonds, as may be provided in a Credit Facility or Credit Facility Agreement. “Pledged Revenues” means Net Operating Revenues, Investment Earnings, Hedge Receipts, and all moneys paid or required to be paid into, and all moneys and securities on deposit from time to time in, the funds and accounts specified in the Bond Ordinance, but excluding any amounts required in the Bond Ordinance to be set aside pending, or used for, rebate to the United States government pursuant to Section 148(f) of the Code, including, but not limited to, amounts in the Rebate Fund. “Principal” means, with respect to a Current Interest Bond, the principal amount of such Bond. “Principal Maturity Date” means each date on which Principal is to become due on any Bonds, by maturity or mandatory sinking fund redemption, as established in the Series Ordinance for such Bonds. “Project” means the acquisition, construction, reconstruction, improvement, betterment, extension or equipping of the System, in whole or in part, with the proceeds of a series of Bonds, including, but not limited to, the Series 2022B Project. “Project Fund” means the fund by that name established in the Bond Ordinance. “Qualified Hedge Provider” means an entity whose senior unsecured long term obligations, financial program rating, counterparty rating, or claims paying ability, or whose payment obligations under the related Hedge Agreement are absolutely and unconditionally guaranteed by an entity whose senior unsecured long term obligations, financial program rating, counterparty rating, or claims paying ability, are rated either (i) at least as high as the third highest Rating of each Rating Agency, but in no event lower than any Rating on the related Hedged Bonds at the time of execution of the Hedge Agreement, or (ii) in any such lower Rating which each Rating Agency indicates in writing to the District will not, by itself, result in a reduction or withdrawal of its Rating on the related Hedged Bonds that is in effect prior to entering into the Hedge Agreement. An entity’s status as a “Qualified Hedge Provider” is determined only at the time the District enters into a Hedge Agreement with such entity and shall not be redetermined with respect to that Hedge Agreement. “Rating” means a rating in one of the categories by a Rating Agency, disregarding pluses, minuses, and numerical gradations. “Rating Agencies” or “Rating Agency” means Fitch, Moody’s, and S&P or any successors thereto and any other nationally recognized credit rating agency then maintaining a rating on any Bonds at the request of the District. If at any time a particular Rating Agency does not have a rating outstanding with respect to the relevant Bonds, then a reference to Rating Agency or Rating Agencies shall not include such Rating Agency. C-10 “Rebate Fund” means the fund by that name established in the Bond Ordinance. “Record Date” means, with respect to any semiannual Interest Payment Date, the 15th day of the calendar month immediately preceding such Interest Payment Date, and any record dates designated by the District in a Series Ordinance. “Reimbursement Obligation” means the obligation of the District to directly reimburse any Credit Facility Provider for amounts paid by such Credit Facility Provider under a Credit Facility, whether or not such obligation to so reimburse is evidenced by a promissory note or other similar instrument. “Renewal and Extension Fund” means the fund by that name established in the Bond Ordinance. “Replenishment Payments” shall have the meaning ascribed therefor in under the caption “Sinking Fund – Debt Service Reserve Account” in this Appendix C. “Reserve Account Credit Facility” means any letter of credit, insurance policy, line of credit, or surety bond, together with any substitute or replacement therefor, if any, complying with the provisions of the Bond Ordinance, thereby fulfilling all or a portion of the Debt Service Reserve Requirement. “Reserve Account Credit Facility Agreement” means any agreement between the District and a Reserve Account Facility Provider relating to the issuance of a Reserve Account Credit Facility, as such agreement may be amended from time to time. “Reserve Account Credit Facility Provider” means any provider of a Reserve Account Credit Facility. “Revenue Fund” means the fund by that name established in the Bond Ordinance. “Senior Bonds” means the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds, the Series 2013B Bonds, the Series 2015B Bonds, the Series 2016C Bonds, the Series 2017A Bonds, the Series 2018A Bond, the Series 2019B Bonds, the Series 2019C Bonds, the Series 2020B Bonds, the Series 2021C Bonds, the Series 2022A Bonds, the Series 2022B Bonds, and any Bonds, including Senior SRF Bonds and Senior Uncovered Bonds, issued with a right to payment and secured by a lien on a parity with the Series 2010B Bonds, the Series 2012A Bonds, the Series 2012B Bonds, the Series 2013B Bonds, the Series 2015B Bonds, the Series 2016C Bonds, the Series 2017A Bonds, the Series 2018A Bond, the Series 2019B Bonds, the Series 2019C Bonds, the Series 2020B Bonds, the Series 2021C Bonds, the Series 2022A Bonds and the Series 2022B Bonds (except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except that Senior SRF Bonds and Senior Uncovered Bonds shall not be secured by the Debt Service Reserve Account) pursuant to the Bond Ordinance. “Senior Hedge Agreements” means Hedge Agreements relating to Hedged Bonds which are Senior Bonds. “Senior SRF Bonds” means SRF Bonds which are Senior Bonds. C-11 “Senior Uncovered Bonds” means all series of Senior Bonds, other than Senior SRF Bonds, with respect to which the District has specified pursuant to a Series Ordinance authorizing such series of Senior Bonds that such series of Senior Bonds will not be secured by the Debt Service Reserve Account. “Series 2022B Bonds” means the District’s Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B, issued in the original aggregate Principal amount of $109,070,000. “Series 2022B Project” means the project as particularly described in plans and specifications on file from time to time with the District. “Series 2022B Project Account” means the account by that name within the Project Fund established in the Bond Ordinance “Series 2022B Rebate Account” means the account by that name within the Rebate Fund established in the Bond Ordinance. “Series Ordinance” means a bond ordinance or bond ordinances of the District (which may be supplemented by one or more bond ordinances) to be adopted prior to and authorizing the issuance and delivery of any series of Bonds. The Master Bond Ordinance shall constitute a Master Bond Ordinance for Senior Bonds and Subordinate Bonds. Such a bond ordinance as supplemented shall establish the date or dates of the pertinent series of Bonds, the schedule of maturities of such Bonds, whether any such Bonds will be capital appreciation bonds, the name of the purchaser(s) of such series of Bonds, the purchase price thereof, the rate or rates of interest to be borne thereby, whether fixed or variable, the interest payment dates for such Bonds, the terms and conditions, if any, under which such Bonds may be made subject to redemption (mandatory or optional) prior to maturity, the form of such Bonds, and such other details as the District may determine. “Sinking Fund” means the fund by that name established in the Bond Ordinance. “SRF Bonds” means such Bonds or other obligations issued in connection with the District’s participation in the Missouri State Revolving Fund Program of the Missouri Department of Natural Resources and the State Environmental Improvement and Energy Resources Authority, which SRF Bonds may be Senior SRF Bonds or Subordinate SRF Bonds. “Standard and Poor’s” or “S&P” means S&P Global Ratings, a division of S&P Global Inc., or, if such corporation is dissolved or liquidated or otherwise ceases to perform securities rating services, such other nationally recognized securities rating agency as may be designated in writing by the District. At the time the Master Bond Ordinance was adopted, the notice address of S&P is 25 Broadway, New York, New York 10004. “State” means the State of Missouri. “Subordinate Bonds” means Bonds, including Subordinate SRF Bonds, issued with a right to payment from the Pledged Revenues and secured by a lien on the Pledged Revenues expressly junior and subordinate to the Senior Bonds. “Subordinate Hedge Agreements” means Hedge Agreements relating to Hedged Bonds which are Subordinate Bonds. “Subordinate SRF Bonds” means SRF Bonds which are Subordinate Bonds. C-12 “Supplemental Ordinance” means (a) any Series Ordinance and (b) any modification, amendment, or supplement to the Master Bond Ordinance other than a Series Ordinance. “System” means the sanitary sewer system of the District, as it now exists and as it may be hereafter added to, extended, improved and equipped, either from the proceeds of the Bonds or from any other sources at any time hereafter, including, without limitation, (a) all sanitary sewers, all combined sewers, all pumping stations, all wastewater treatment plants, and all equipment used in connection therewith, all facilities for the collection, treatment and disposal of sewage and wastewater, including industrial wastes, and (b) all other facilities or property of any nature or description, real or personal, tangible or intangible, now or hereafter owned or used by the District in the collection, treatment and disposal of sewage. The District may own a partial interest in any sanitary sewer facility, the remaining interest in which may be owned by or on behalf of a political subdivision of the State or any agency or authority thereof. In case of such ownership, the rights and interests possessed by the District in such facility shall be included as part of the System. “Tax-Exempt Bonds” means any Bonds the interest on which has been determined, in an opinion of Bond Counsel, to be excludable from the gross income of the owners thereof for federal income tax purposes. “Underwriter” means (i) with respect to the Series 2022B Bonds, BofA Securities, Inc., as representative of the original purchasers of the Series 2022B Bonds, and (ii) with respect to any additional series of Bonds, the underwriter(s) specified in the Series Ordinance authorizing such series of Bonds. “U.S. Treasury Trust Receipts” means receipts or certificates which evidence an undivided ownership interest in the right to the payment of portions of the principal of or interest on obligations described in clauses (a) or (b) of the term Government Obligations, provided that such obligations are held by a bank or trust company organized under the laws of the United States acting as custodian of such obligations, in a special account separate from the general assets of such custodian. “U.S. Treasury Interest Subsidy” means any interest subsidy paid by the United States Treasury to the District. “Variable Rate” means a rate of interest applicable to Bonds, other than a fixed rate of interest which applies to a particular maturity of Bonds, so long as that maturity of Bonds remains Outstanding. FUNDS AND ACCOUNTS The District establishes or ratifies the establishment of the following funds and accounts, and the moneys deposited in such funds and accounts shall be held in trust for the purposes set forth in the Bond Ordinance: (a) The Metropolitan St. Louis Sewer District Wastewater Revenue Fund (the “Revenue Fund”), to be held by the Depository for the account of the District. (b) The Metropolitan St. Louis Sewer District Wastewater Sinking Fund (the “Sinking Fund”), to be held by the Depository for the account of the District, and within said Sinking Fund a Payments Account and a Debt Service Reserve Account. C-13 (c) The Metropolitan St. Louis Sewer District Wastewater Renewal and Extension Fund (the “Renewal and Extension Fund”), to be held by the Depository for the account of the District. (d) The Metropolitan St. Louis Sewer District Wastewater Rebate Fund (the “Rebate Fund”), to be held by the Depository for the account of the District, and within said Rebate Fund a Series 2022B Rebate Account. (e) The Metropolitan St. Louis Sewer District Wastewater Project Fund (the “Project Fund”), to be held by the Depository for the account of the District, and within said Project Fund a Series 2022B Project Account. Each account listed above shall be held within the fund under which it is created. The District reserves the right, in its sole discretion, to create additional subaccounts or to abolish any subaccounts within any account from time to time. Revenue Fund The District shall deposit and continue to deposit all Operating Revenues in the Revenue Fund from time to time as and when received. Moneys in the Revenue Fund shall be applied by the District from time to time to the following purposes and, prior to the occurrence and continuation of an Event of Default, in the following order of priority: (1) to pay Expenses of Operation and Maintenance, (2) to deposit into the Sinking Fund the amounts required by the Bond Ordinance and described below under the caption “FUNDS AND ACCOUNTS – Sinking Fund,” (3) to make Replenishment Payments to the Debt Service Reserve Account and to pay to any Credit Facility Provider any amounts due under a Credit Facility Agreement, including Additional Interest, in accordance with the Bond Ordinance and described below under the caption “FUNDS AND ACCOUNTS – Sinking Fund – Debt Service Reserve Account,” (4) to deposit into the Rebate Fund the amounts required by the Bond Ordinance, (5) to pay any amounts due any Reserve Account Credit Facility Provider pursuant to the Reserve Account Credit Facility Agreement, (6) to deposit the amounts required to be deposited into the funds and accounts created by any Series Ordinance authorizing the issuance of Subordinate Bonds, for the purpose of paying Principal of (whether at maturity, upon mandatory redemption or as otherwise required by a Series Ordinance relating to Subordinate SRF Bonds) and interest on Subordinate Bonds, making Hedge Contingency Payments under Senior Hedge Agreements, making Contingency Payments under Senior Hedge Agreements, making Hedge Payments and making Hedge Contingency Payments under Subordinate Hedge Agreements, and accumulating reserves for such payments, (7) to make Accumulation Payments to the Debt Service Reserve Account in accordance with the Bond Ordinance and described below under the caption “FUNDS AND ACCOUNTS – Sinking Fund – Debt Service Reserve Account,” and (8) to pay any amounts required to be paid with respect to any Other System Obligations. In addition to, and after, the deposits described above, the District may from time to time deposit into the Renewal and Extension Fund any moneys and securities held in the Revenue Fund in excess of 45 days’ estimated Expenses of Operation and Maintenance. Any money withdrawn from the funds and accounts described in clause (6) above relating to Subordinate Bonds for use in making payments described in said clause (6) shall be released from the lien of the Bond Ordinance. If at any time the amounts in any account of the Sinking Fund are less than the amounts required by the Bond Ordinance, and there are not on deposit in the Renewal and Extension Fund available moneys sufficient to cure any such deficiency, then the District shall withdraw from the funds and accounts of the District relating to Subordinate Bonds and deposit in such account of the C-14 Sinking Fund, as the case may be, the amount necessary (or all the moneys in such funds and accounts, if less than the amount required) to make up such deficiency. Sinking Fund Payments Account-General. Sufficient moneys shall be paid in periodic installments from the Revenue Fund into the Payments Account for the purpose of paying the Principal of and interest (excluding Additional Interest) on the Senior Bonds as they become due and payable and for the purpose of making Hedge Payments under Senior Hedge Agreements. Amounts held in the Payments Account shall be used solely to pay interest (excluding Additional Interest) and Principal of the Senior Bonds as the same become due and payable (whether at maturity or upon redemption) and to pay Hedge Payments under Senior Hedge Agreements when due. Amounts held in the Payments Account shall not be used to pay Additional Interest. Interest. Except as otherwise provided in any Series Ordinance authorizing Senior SRF Bonds, on or before the 30th day preceding each Interest Payment Date for Senior Bonds (or, in the case of Senior Bonds bearing interest at a Variable Rate, on or before the Business Day preceding each Interest Payment Date), the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment and, in the case of Senior SRF Bonds, anticipated investment earnings on reserve funds held by a bond trustee relating to such Senior SRF Bonds, is not less than the interest (excluding Additional Interest) coming due on such Senior Bonds on such Interest Payment Date. The District shall also deposit and continue to deposit all Hedge Receipts under Senior Hedge Agreements in the Payments Account from time to time as and when received. Principal. Except as otherwise provided in any Series Ordinance authorizing Senior SRF Bonds, on or before the 30th day preceding each Principal Maturity Date for Senior Bonds, the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than the Principal coming due on such Senior Bonds on such Principal Maturity Date. Hedge Payments. On or before the 30th day preceding each payment date for Hedge Payments under Senior Hedge Agreements, the District shall deposit in the Payments Account an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than such Hedge Payments coming due on such payment date. Application of Moneys in Payments Account. No further payments need be made into the Payments Account whenever the amount available in the Payments Account, if added to the amount then in the Debt Service Reserve Account (without taking into account any amount available to be drawn on any Reserve Account Credit Facility), is sufficient to retire all Senior Bonds then Outstanding and to pay all unpaid interest accrued and to accrue prior to such retirement. No moneys in the Payments Account shall be used or applied to the optional purchase or redemption of Senior Bonds prior to maturity unless: (i) provision shall have been made for the payment of all of the Senior Bonds; or (ii) such moneys are applied to the purchase and cancellation of Senior Bonds which are subject to mandatory redemption on the next mandatory redemption date, which falls due within 12 months, such Senior Bonds are purchased at a price not more than would be required for mandatory redemption, and such Senior Bonds are cancelled upon purchase; or (iii) such moneys are applied to the purchase and cancellation of Senior Bonds at a price less than the amount of Principal which would be payable on such Senior Bonds, together with interest accrued through the date of purchase, and such Senior Bonds are cancelled upon purchase; or (iv) such moneys are in excess of the then required balance of the Payments Account and are C-15 applied to redeem a part of the Senior Bonds Outstanding on the next succeeding redemption date for which the required notice of redemption may be given. Debt Service Reserve Account. With respect to Senior Bonds which are not Senior Uncovered Bonds, there shall be deposited into the Debt Service Reserve Account the amounts specified in Series Ordinances with respect to Senior Bonds. Notwithstanding the foregoing, there shall be no deposit into the Debt Service Reserve Account with respect to any SRF Bonds or Senior Uncovered Bonds nor shall the Debt Service Reserve Account secure any SRF Bonds or Senior Uncovered Bonds. After the issuance of any Senior Bonds, the increase in the amount of the Debt Service Reserve Requirement resulting from the issuance of such Senior Bonds shall be accumulated, to the extent not covered by deposits from Bond proceeds or funds on hand, over a period not exceeding 61 months from the date of delivery of such Senior Bonds in monthly deposits (“Accumulation Payments”), none of which is less than 1/60 of the amount to be accumulated. The balance of the Debt Service Reserve Account shall be maintained at an amount equal to the Debt Service Reserve Requirement (or such lesser amount that is required to be accumulated in the Debt Service Reserve Account in connection with the periodic accumulation to the Debt Service Reserve Requirement after the issuance of Senior Bonds or upon the failure of the District to provide a substitute Reserve Account Credit Facility in certain events). There shall be transferred from the Revenue Fund on a pro rata basis (1) to the Debt Service Reserve Account the amount necessary to restore, as further described below, the amount of cash and securities in the Debt Service Reserve Account to an amount equal to the difference between (a) the Debt Service Reserve Requirement (or such lesser monthly amount that is required to be deposited into the Debt Service Reserve Account after the issuance of Senior Bonds or upon the failure of the District to provide a substitute Reserve Account Credit Facility in certain events) and (b) the portion of the required balance of the Debt Service Reserve Account satisfied by means of a Reserve Account Credit Facility, and (2) to any Reserve Account Credit Facility Provider the amount necessary to reinstate any Reserve Account Credit Facility which has been drawn down. Whenever for any reason the amount in the Payments Account is insufficient to pay all interest or Principal becoming due on the Senior Bonds within the next seven days (or, in the case of Senior Bonds bearing interest at a Variable Rate, on the next Business Day), the District shall make up any deficiency by transfers first from the Renewal and Extension Fund and second from the funds and accounts of the District relating to Subordinate Bonds which are not Subordinate SRF Bonds. Whenever, on the date that such interest or Principal is due, there are insufficient moneys in the Payments Account available to make such payment, the District shall, without further instructions, apply so much as may be needed of the moneys in the Debt Service Reserve Account to prevent default in the payment of such interest or Principal, with priority to interest payments. Whenever by reason of any such application or otherwise (other than required Accumulation Payments), the amount remaining to the credit of the Debt Service Reserve Account is less than the amount then required to be in the Debt Service Reserve Account, such deficiency shall be remedied by monthly deposits (“Replenishment Payments”) from the Revenue Fund, to the extent funds are available in the Revenue Fund for such purpose after all required transfers set forth above have been made. The District may elect to satisfy in whole or in part the Debt Service Reserve Requirement by means of a Reserve Account Credit Facility, subject to the following requirements: (A) the Reserve Account Credit Facility Provider must have a credit rating issued by a Rating Agency not less than the then current Rating on the related series of Senior Bonds (or, in the case of a series of Senior Bonds supported by a Credit Facility, the underlying rating on such Senior Bonds); (B) the District shall not secure any obligation to the Reserve Account Credit Facility Provider by a lien equal to or superior to the lien granted to the related series of Senior Bonds; (C) each Reserve Account Credit Facility shall have a term of at least one (1) year (or, if less, the remaining term of the related series of Senior Bonds) and shall entitle the District to draw upon or demand payment and receive the amount so requested in immediately available funds on the date of such draw or demand; (D) the Reserve Account Credit Facility shall permit a drawing by the District for the full stated amount in the event (i) the Reserve Account Credit Facility C-16 expires or terminates for any reason prior to the final maturity of the related series of Senior Bonds, and (ii) the District fails to satisfy the Debt Service Reserve Requirement by the deposit to the Debt Service Reserve Account of cash, obligations, a substitute Reserve Account Credit Facility, or any combination thereof, on or before the date of such expiration or termination; (E) if the Rating issued by the Rating Agency to the Reserve Account Credit Facility Provider is withdrawn or reduced below the Rating assigned to the related series of Senior Bonds immediately prior to such action by the Rating Agency, the District shall provide a substitute Reserve Account Credit Facility within sixty (60) days after such rating change, and, if no substitute Reserve Account Credit Facility is obtained by such date, shall fund the Debt Service Reserve Requirement in not more than twenty-four (24) equal monthly deposits commencing not later than the first day of the month immediately succeeding the date representing the end of such sixty (60) day period; (F) if the Reserve Account Credit Facility Provider commences any insolvency proceedings or is determined to be insolvent or fails to make payments when due on its obligations, the District shall provide a substitute Reserve Account Credit Facility within sixty (60) days thereafter, and, if no substitute Reserve Account Credit Facility is obtained by such date, shall fund the Debt Service Reserve Requirement in not more than twenty-four (24) equal monthly deposits commencing not later than the first day of the month immediately succeeding the date representing the end of such sixty (60) day period; and (G) the prior written consent of the Credit Facility Provider, as to the provider and the structure of the Reserve Account Credit Facility, shall be obtained by the District. If the events described in either clauses (E) or (F) above occur, the District shall not relinquish the Reserve Account Credit Facility at issue until after the Debt Service Reserve Requirement is fully satisfied by the provision of cash, obligations, or a substitute Reserve Account Credit Facility or any combination thereof. Any amount received from the Reserve Account Credit Facility shall be deposited directly into the Payments Account, and such deposit shall constitute the application of amounts in the Debt Service Reserve Account. Repayment of any draw-down on the Reserve Account Credit Facility (other than repayments which reinstate the Reserve Account Credit Facility) and any interest or fees due the Reserve Account Credit Facility Provider under such Reserve Account Credit Facility shall be secured by a lien on the Pledged Revenues subordinate to payments into the Sinking Fund and the Rebate Fund and payments to any Credit Facility Provider securing Senior Bonds. Any such Reserve Account Credit Facility shall be pledged to the benefit of the owners of all of the Senior Bonds. The District reserves the right, if it deems it necessary in order to acquire such a Reserve Account Credit Facility, to amend the Bond Ordinance without the consent of any of the owners of the Bonds in order to grant to the Reserve Account Credit Facility Provider such additional rights as it may demand, provided that such amendment shall not, in the written opinion of Bond Counsel filed with the District, impair or reduce the security granted to the owners of Senior Bonds or any of them. The Series 2022B Bonds are Senior Uncovered Bonds and therefore are not secured by the Debt Service Reserve Account. Renewal and Extension Fund In addition to the deposits to be made to the Renewal and Extension Fund pursuant to the Bond Ordinance, the District shall deposit in the Renewal and Extension Fund all termination payments received under any Hedge Agreements. All sums accumulated and retained in the Renewal and Extension Fund shall be used first to prevent default in the payment of interest on or Principal of the Senior Bonds when due and then shall be applied by the District from time to time, as and when the District shall determine, to the following purposes and, prior to the occurrence and continuation of an Event of Default, in the order of priority determined by the District in its sole discretion: (a) for the purposes for which moneys held in the Revenue Fund may be applied under the Bond Ordinance, (b) to pay any amounts which may then be due and owing under any Hedge Agreement (including termination payments, fees, expenses, and indemnity payments), (c) to pay any governmental charges and assessments against the C-17 System or any part thereof which may then be due and owing, (d) to make acquisitions, betterments, extensions, repairs, or replacements or other capital improvements (including the purchase of equipment) to the System deemed necessary by the District (including payments under contracts with vendors, suppliers, and contractors for the foregoing purposes), (e) to acquire Senior Bonds by redemption or by purchase in the open market at a price not exceeding the callable price as provided and in accordance with the terms and conditions of the Bond Ordinance, which Senior Bonds may be any of the Senior Bonds, prior to their respective maturities, and when so used for such purposes the moneys shall be withdrawn from the Renewal and Extension Fund and deposited into the Payments Account for the Senior Bonds to be so redeemed or purchased and (f) for any other purpose of the District. Payments for the purposes set forth in clause (e) of the preceding sentence are not “required payments” for purposes of the District’s rate covenant set forth in the Bond Ordinance. Rebate Fund The District shall calculate, from time to time, as required in order to comply with the provisions of Section 148(f) of the Code, the amounts required to be rebated (including penalties) to the United States and shall deposit or cause to be deposited into the Rebate Fund any and all of such amounts promptly following a determination of any such amount. The District shall direct the Depository of the Rebate Fund to keep all moneys held therein invested in Permitted Investments. To the extent and at the times required in order to comply with Section 148(f) of the Code, the District may withdraw funds from the Rebate Fund for the purpose of making rebate payments (including penalties) to the United States as required by Section 148(f) of the Code. Except as otherwise specifically provided in the Bond Ordinance, moneys in the Rebate Fund may not be withdrawn from the Rebate Fund for any other purpose. All earnings on investments held in the Rebate Fund shall be retained in the Rebate Fund and shall become part of the Rebate Fund. Moneys held in the Rebate Fund, including the Investment Earnings thereon, if any, shall not be subject to a pledge in favor of the owners of the Bonds under the Bond Ordinance and may not be used to pay amounts due on the Bonds or under any Credit Facility Agreements or Hedge Agreements or amounts required for the operation, maintenance, enlargement, or extension of the System. Project Fund The District shall establish within the Project Fund a separate account for each Project. Except as may be otherwise provided in the Series Ordinance authorizing the issuance of SRF Bonds, moneys in the Project Fund shall be held by the Depository, or such other bank as may from time to time be designated by the District, and applied to the payment of the Costs of the Project, or for the repayment of advances made for that purpose in accordance with and subject to the provisions and restrictions set forth in the Bond Ordinance. The District covenants that it will not cause or permit to be paid from the Project Fund any sums except in accordance with such provisions and restrictions; provided, however, that any moneys in the Project Fund not presently needed for the payment of current obligations during the course of construction may be invested in Permitted Investments maturing not later than (i) the date upon which such moneys will be needed according to a schedule of anticipated payments from the Project Fund filed with the District by the Consultant in charge of the Project or (ii) in the absence of such schedule, 36 months from the date of purchase, in either case upon written direction of the District. Any such investments shall be held by the Depository, in trust, for the account of the Project Fund until maturity or until sold, and at maturity or upon such sale the proceeds received therefrom including accrued interest and premium, if any, shall be immediately deposited by the Depository in the Project Fund and shall be disposed of in the manner and for the purposes provided in the Bond Ordinance. C-18 Moneys in each separate account in the Project Fund shall be used for the payment or reimbursement of the Costs of the Project for which such account was established as provided in the Bond Ordinance. All payments from the Project Fund shall be made upon draft except as provided in the Bond Ordinance, signed by an officer of the District properly authorized to sign on its behalf, but before such officer shall sign any such draft, there shall be filed with the Depository a requisition for such payment, in substantially the form attached as an exhibit to the Bond Ordinance, stating each amount to be paid and the name of the person to whom payment is due, and certifying: (a) That an obligation in the stated amount has been incurred by the District and that the same is a proper charge against the Project Fund and has not been paid and stating that the bill or statement of account for such obligation, or a copy thereof, is on file in the office of the District; (b) That the signer has no notice of any vendor’s, mechanic’s, or other liens or rights to liens, chattel mortgages, or conditional sales contracts which should be satisfied or discharged before such payment is made; and (c) That such requisition contains no item representing payment on account of any retained percentages which the District is, at the date of any such certificate, entitled to retain. In the event the United States government or government of the State, or any department, authority, or agency of either, agrees to allocate moneys to be used to defray any part of the Cost of any Project upon the condition that the District appropriate a designated amount of moneys for such purpose, and it is required of the District that its share of such cost be deposited in a special account, the District shall have the right to withdraw any sum so required from the Project Fund by appropriate transfer and deposit the same in a special account for that particular Project; provided, however, that all payments thereafter made from such special account shall be made only in accordance with the requirements set forth in the Bond Ordinance. Withdrawals for investment purposes only may be made by the Depository to comply with written directions from the District without any requisition other than such direction. For each series of Bonds, the District shall, when a Project has been completed, and may, when a Project has been substantially completed, file with the Depository a certificate signed by the Chief Financial Officer estimating what portion of the funds remaining in the separate account relating to such Project will be required by the District for the payment or reimbursement of the Costs of such Project. The Chief Financial Officer shall attach to his or her certificate a certificate of the supervising engineer certifying that such Project has been completed or substantially completed, as the case may be, in accordance with the plans and specifications therefor and approving the estimates of the Chief Financial Officer with respect to the portion of funds in the account required for Costs of the Project. Such funds that will not be used shall be (1) transferred to the Payments Account and used to redeem Bonds of the related series on the next redemption date or to pay Principal of such Bonds on the next Principal Maturity Date, or (2) transferred to the Payments Account and used to pay interest on Bonds of the related series, provided that the District shall first obtain an opinion of Bond Counsel to the effect that, under existing law, the application of such moneys to pay interest on such Bonds (a) is allowed under State law, and (b) if such Bonds are Tax-Exempt Bonds, will not, by itself and without more, adversely affect the exclusion from gross income for federal income tax purposes of interest payable on such Bonds. When all moneys have been withdrawn or transferred from any separate account within the Project Fund in C-19 accordance with the provisions of the Bond Ordinance, such separate account shall terminate and cease to exist. DEPOSITS AND INVESTMENTS All moneys in the funds and accounts established under the Bond Ordinance, except those funds and accounts created by a Series Ordinance in connection with the issuance of SRF Bonds, shall be held by the District in one or more Depositories qualified for use by the District. Uninvested moneys shall, at least to the extent not guaranteed by the Federal Deposit Insurance Corporation, be secured to the fullest extent required by the laws of the State for the security of public funds. Moneys in the funds and accounts established under the Bond Ordinance, except those funds and accounts created by a Series Ordinance in connection with the issuance of SRF Bonds, shall be invested and reinvested in Permitted Investments bearing interest at the highest rates reasonably available (except to the extent that a restricted yield is required or advisable under Section 148 of the Code) and containing such maturities as are deemed suitable by the District; provided, however, that without the prior written consent of the Credit Facility Provider, investments of moneys in the Debt Service Reserve Account shall not have maturities extending beyond five years. Investment of moneys in funds and accounts created by a Series Ordinance in connection with the issuance of SRF Bonds shall be as set forth in such Series Ordinance. Investment Earnings in each fund and account (except the Debt Service Reserve Account) shall be retained therein. Investment Earnings from the investment of moneys in the Debt Service Reserve Account shall be retained in the Debt Service Reserve Account at all times the balance is less than the Debt Service Reserve Requirement; thereafter and at all times the balance of the Debt Service Reserve Account is equal to or greater than the Debt Service Reserve Requirement, such Investment Earnings shall be deposited in the Payments Account. The Series Ordinance authorizing the issuance of any Subordinate Bonds shall specify any maturity limitations and allocations of Investment Earnings on investments of moneys in the funds and accounts relating to such Subordinate Bonds. Moneys in each of such funds shall be accounted for as a separate and special fund apart from all other District funds, provided that investments of moneys therein may be made in a pool of investments together with other moneys of the District so long as sufficient Permitted Investments in such pool, not allocated to other investments of contractually or legally limited duration, are available to meet the requirements of the foregoing provisions. All investments made under the Bond Ordinance shall, for purposes of the Bond Ordinance, be valued at fair market value on the 45th day (or the next succeeding Business Day if such 45th day is not a Business Day) prior to each Interest Payment Date. The valuation of the investment of moneys in funds and accounts created by a Series Ordinance in connection with the issuance of SRF Bonds shall be as set forth in such Series Ordinance. C-20 MAINTENANCE OF SYSTEM The District covenants that it will enforce reasonable rules and regulations governing the System and the operation thereof, that it will operate the System in an efficient and economical manner and will at all times maintain the System in good repair and in sound operating condition, that it will make all necessary repairs, renewals, and replacements to the System, and that it will comply with all valid acts, rules, regulations, orders, and directions of any legislative, executive, administrative, or judicial body applicable to the System and the District’s operation thereof. RATE COVENANT See the heading “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS – Rate Covenant.” INSURANCE With respect to the System, the District will carry adequate public liability, fidelity and property insurance, such as is maintained by similar utilities as the System. The District shall indemnify itself against the usual hazards incident to the construction of any Project, and without in any way limiting the generality of the above, shall: (a) require each construction contractor and each subcontractor to furnish a bond, or bonds, of such type and in amounts adequate to assure the faithful performance of their contracts and the payment of all bills and claims for labor and material arising by virtue of such contracts; and (b) require each construction contractor or the subcontractor to maintain at all times until the completion and acceptance of the Project adequate compensation insurance for all of their employees and adequate public liability and property damage insurance for the full and complete protection of the District from any and all claims of every kind and character which may arise by virtue of the operations under their contracts, whether such operations be by themselves or by anyone directly or indirectly for them, or under their control. All such policies shall be for the benefit of and made payable to the District and shall be on deposit with the District; provided, however, the District may elect to be a self-insurer with respect to any risks for which insurance is required under the Bond Ordinance. The cost of such insurance may be paid as an Expense of Operation and Maintenance. All moneys received for losses under any such insurance policies, except public liability policies, are pledged by the District as security for the Bonds until and unless such proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by repairing the property damaged or replacing the property destroyed or by depositing the same in the Renewal and Extension Fund. Adequate provision for making good such loss and damage shall be made within 120 days from the date of the loss. Insurance proceeds not used in making such provision shall be deposited in the Renewal and Extension Fund on the expiration of such 120-day period. Such insurance proceeds shall be payable to the District by appropriate clause to be attached to or inserted in the policies. NO SALE, LEASE OR ENCUMBRANCE; EXCEPTIONS Except as expressly permitted in the Bond Ordinance, the District irrevocably covenants, binds, and obligates itself not to sell, lease, encumber, or in any manner dispose of the System as a whole or in C-21 part until all of the Bonds and all interest thereon shall have been paid in full or provision for payment has been made in accordance with the Bond Ordinance. The District shall have and reserves the right to sell, lease, or otherwise dispose of any of the property comprising a part of the System in the following manner, if any one of the following conditions exists: (i) such property is not necessary for the operation of the System; (ii) such property is not useful in the operation of the System; (iii) such property is not profitable in the operation of the System; or (iv) the disposition of such property will be advantageous to the System and will not adversely affect the security for the Bondholders. All proceeds of any such sale, lease or other disposition shall be deposited in the Renewal and Extension Fund. Prior to any such sale, lease or other disposition, there shall be filed with the District: (i) an opinion of Bond Counsel to the effect that such sale, lease or other disposition will not adversely affect the extent to which interest on any Tax-Exempt Bonds is excluded from gross income for federal income tax purposes (provided that such opinion shall not be required if the Chief Financial Officer determines that such portion of the System was not financed with the proceeds of any Tax-Exempt Bonds); and (ii) an opinion of a Consultant expressing the view that such sale, lease or other disposition will not result in any diminution of Net Operating Revenues to the extent that in any future Fiscal Year the Net Operating Revenues and Investment Earnings will be less than (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds to be Outstanding after such sale, lease or other disposition or (B) 115% of the Maximum Annual Debt Service Requirement on all Bonds to be Outstanding after such sale, lease or other disposition. In reaching this conclusion, the Consultant shall take into consideration such factors as the Consultant may deem significant, including (i) anticipated diminution of Operating Revenues, (ii) anticipated increase or decrease in Expenses of Operation and Maintenance attributable to the sale, lease or other disposition, and (iii) reduction in the annual Debt Service Requirement attributable to the application of the proceeds of such sale, lease or other disposition to the provision for payment of Bonds theretofore Outstanding. Such sale, lease or other disposition may include a partial interest in a sanitary sewer facility owned or to be owned in whole or in part by the District. The District reserves the right to transfer the System as a whole to any political subdivision or authority or agency of one or more political subdivisions of the State to which may be delegated the legal authority to own and operate the System, or any portion thereof, on behalf of the public, and which undertakes in writing, filed with the District, the District’s obligations under the Bond Ordinance, provided that there shall be first filed with the District: (i) an opinion of Bond Counsel to the effect that such sale will not adversely affect the extent to which interest on any Tax-Exempt Bonds is excluded from gross income for federal income tax purposes; and (ii) an opinion of a Consultant expressing the view that such transfer will not result in any diminution of Net Operating Revenues to the extent that in any future Fiscal Year the Net Operating Revenues and Investment Earnings will be less than (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds to be Outstanding after such transfer or (B) 115% of the Maximum Annual Debt Service Requirement on all Bonds to be Outstanding after such transfer. In reaching this conclusion, the Consultant shall take into consideration such factors as the Consultant may deem significant, including any rate schedule adopted by the transferee political subdivision, authority, or agency. Upon receipt of an opinion of Bond Counsel to the effect that such action will not adversely affect the extent to which interest on any Tax-Exempt Bonds is excluded from gross income for federal income tax purposes, the District may enter into such management contracts and sale/leaseback agreements as the District may deem appropriate, and such management contracts and sale/leaseback agreements shall not constitute a sale, lease or other disposition within the meaning of the Bond Ordinance. C-22 ENFORCEMENT OF CHARGES AND CONNECTIONS Except as otherwise determined in accordance with District policy and provided that such action or inaction will not materially impair the rights of the Bondholders, the District shall compel the prompt payment of rates, fees, and charges imposed for service rendered on every lot or parcel connected with the System, and to that end will vigorously enforce all of the provisions of any resolution or ordinance of the District having to do with sanitary sewer connections and with sanitary sewer charges, and all of the rights and remedies permitted the District under law. The District expressly covenants and agrees that such charges will be enforced and promptly collected to the full extent permitted by law, including the requirement for the making of reasonable deposits by customers of the System to the extent required by the District and the securing of injunctions against the disposition of sewage or industrial waste into the System by any premises delinquent in the payment of such charges. None of the facilities or services afforded by the System will be furnished to any user without a reasonable charge being made therefor. ANNUAL BUDGET The District agrees to adopt an Annual Budget for the System for each Fiscal Year in compliance with the Charter and the rate covenants as stated in the Bond Ordinance. BOOKS AND AUDITS The District will install and maintain proper books, records and accounts for the System according to standard accounting practices for the operation of facilities comparable to the System. Annual audits will be made by a certified public accountant. SENIOR AND SUBORDINATE LIEN BONDS No Prior Lien Bonds nor Senior Bonds Except as Permitted in the Bond Ordinance All Senior Bonds shall have complete parity of lien on the Pledged Revenues despite the fact that any of the Senior Bonds may be delivered at an earlier date than any other of the Senior Bonds. The District may issue Senior Bonds in accordance with the Bond Ordinance, but the District shall issue no other obligations of any kind or nature payable from or enjoying a lien on the Pledged Revenues or any part thereof having priority over or, except as permitted in the Bond Ordinance, on a parity with the Senior Bonds. Refunding Bonds Any or all of the Senior Bonds may be refunded prior to maturity, upon redemption in accordance with their terms, or with the consent of the owners of such Senior Bonds, and the refunding Bonds so issued shall constitute Senior Bonds, if: (a) The District shall have obtained a report from an Independent Certified Public Accountant or a Financial Advisor demonstrating that the refunding will reduce the total debt service payments on Outstanding Senior Bonds on a present value basis. C-23 (b) As an alternative to, and in lieu of, satisfying the requirements of paragraph (a) above, all Outstanding Senior Bonds are being refunded under arrangements which immediately result in making provision for the payment of the refunded Bonds. (c) The requirements described in paragraphs (e) and (g) below under the caption “SENIOR AND SUBORDINATE LIEN BONDS – Senior Bonds”) are met with respect to such refunding Bonds. Senior Bonds Bonds (including refunding Bonds which do not meet the requirements of the Bond Ordinance described above under the caption “SENIOR AND SUBORDINATE LIEN BONDS – Refunding Bonds”) may also be issued on a parity with the Outstanding Senior Bonds and any Senior Bonds hereafter issued pursuant to a Series Ordinance, and the Bonds so issued shall constitute Senior Bonds, if all of the following conditions are satisfied: (a) There shall have been filed with the District either: (i) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings for a period of 12 consecutive months of the most recent 18 consecutive months prior to the issuance of the proposed Senior Bonds were equal to at least (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds and (B) 115% of the Maximum Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds, or (ii) a report by a Consultant to the effect that the forecasted Net Operating Revenues and Investment Earnings for each Fiscal Year in the Forecast Period are expected to equal at least (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds and (B) 115% of the Maximum Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds. The report by the Independent Certified Public Accountant that is required by the Bond Ordinance and described in subparagraph (i) above may contain pro forma adjustments to historical Net Operating Revenues equal to 100% of the increased annual amount attributable to any revision in the schedule of rates, fees, and charges for the services, facilities, and commodities furnished by the System, adopted prior to the date of delivery of the proposed Senior Bonds and not fully reflected in the historical Net Operating Revenues actually received during such 12-month period. Such pro forma adjustments shall be based upon a report of a Consultant as to the amount of Operating Revenues which would have been received during such 12-month period had the new rate schedule been in effect throughout such 12- month period. The report by the Consultant that is required by the Bond Ordinance and described in subparagraph (ii) above may not take into consideration any rate schedule to be imposed in the future, unless such rate schedule has been adopted by ordinance of the Governing Body. Such rate schedule adopted by ordinance may contain, however, future effective dates. C-24 (b) The District shall have received, at or before issuance of the Senior Bonds, a report from an Independent Certified Public Accountant to the effect that the payments required to be made into each account of the Sinking Fund have been made and the balance in each account of the Sinking Fund is not less than the balance required by the Bond Ordinance as of the date of issuance of the proposed Senior Bonds. (c) Except with respect to Senior SRF Bonds, the Series Ordinance authorizing the proposed Senior Bonds must either (a) state that the proposed Senior Bonds are Senior Uncovered Bonds and thus not secured by the Debt Service Reserve Account or (b) require (i) that the amount to be accumulated and maintained in the Debt Service Reserve Account be increased to not less than 100% of the Debt Service Reserve Requirement computed on a basis which includes all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds and (ii) that the amount of such increase be deposited in such account on or before the date and at least as fast as specified in the Bond Ordinance. (d) The Series Ordinance authorizing the proposed Senior Bonds must require the proceeds of such proposed Senior Bonds to be used solely to make capital improvements to the System, to fund interest on the proposed Senior Bonds, to acquire existing or proposed sanitary sewer utilities, to refund other obligations issued for such purposes (whether or not such refunding Bonds satisfy the requirements of the Bond Ordinance described above under the caption “SENIOR AND SUBORDINATE LIEN BONDS – Refunding Bonds”), and to pay expenses incidental thereto and to the issuance of the proposed Senior Bonds. (e) If any Senior Bonds would bear interest at a Variable Rate, the Series Ordinance under which such Senior Bonds are issued shall provide a maximum rate of interest per annum which such Senior Bonds may bear. (f) The Chief Officer shall have certified, by written certificate dated as of the date of issuance of the Senior Bonds, that the District is in compliance with all requirements of the Bond Ordinance. (g) The District shall have received an opinion of Bond Counsel, dated as of the date of issuance of the Senior Bonds, to the effect that the Series Ordinance and any related Supplemental Ordinance authorizing the issuance of Senior Bonds have been duly adopted by the District. Subordinate Bonds Bonds may also be issued on a subordinate basis to the Outstanding Senior Bonds and any Senor Bonds hereafter issued pursuant to a Series Ordinance, and the Bonds so issued shall constitute Subordinate Bonds, if all of the following conditions are satisfied: (a) There shall have been filed with the District either: (i) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings for a period of 12 consecutive months of the most recent 18 consecutive months prior to the issuance of the proposed Subordinate Bonds were equal to at least (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Subordinate Bonds and (B) 115% of the Maximum C-25 Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Subordinate Bonds, or (ii) a report by a Consultant to the effect that the forecasted Net Operating Revenues and Investment Earnings for each Fiscal Year in the Forecast Period are expected to equal at least (A) 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Subordinate Bonds and (B) 115% of the Maximum Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Subordinate Bonds. The report by the Independent Certified Public Accountant that is required by the Bond Ordinance and described in subparagraph (i) above may contain pro forma adjustments to historical Net Operating Revenues equal to 100% of the increased annual amount attributable to any revision in the schedule of rates, fees, and charges for the services, facilities, and commodities furnished by the System, adopted prior to the date of delivery of the proposed Subordinate Bonds and not fully reflected in the historical Net Operating Revenues actually received during such 12-month period. Such pro forma adjustments shall be based upon a report of a Consultant as to the amount of Operating Revenues which would have been received during such 12-month period had the new rate schedule been in effect throughout such 12-month period. The report by the Consultant that is required by the Bond Ordinance and described in subparagraph (ii) above may not take into consideration any rate schedule to be imposed in the future, unless such rate schedule has been adopted by ordinance of the Governing Body. Such rate schedule adopted by ordinance may contain, however, future effective dates. (b) The Series Ordinance authorizing the Subordinate Bonds shall provide that such Subordinate Bonds shall be junior and subordinate in lien and right of payment to all Senior Bonds Outstanding at any time. (c) The Series Ordinance authorizing the Subordinate Bonds shall establish funds and accounts for the moneys to be used to pay debt service on the Subordinate Bonds, to pay Hedge Payments under Subordinate Hedge Agreements, and to provide reserves therefor. (d) The requirements of the Bond Ordinance described in paragraphs (d), (e) and (g) above under the caption “SENIOR AND SUBORDINATE LIEN BONDS – Senior Bonds” are met with respect to such Subordinate Bonds (as if such Bonds constituted Senior Bonds). In the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization, or other similar proceedings in connection therewith, relative to the District or to its creditors, as such, or to its property, and in the event of any proceedings for voluntary liquidation, dissolution, or other winding up of the District, whether or not involving insolvency or bankruptcy, the owners of all Senior Bonds then Outstanding and related Qualified Hedge Providers shall be entitled to receive payment in full of all Principal and interest due on all such Senior Bonds in accordance with the provisions of the Bond Ordinance and related Hedge Payments in accordance with the provisions of the Senior Hedge Agreements before the owners of the Subordinate Bonds or related Qualified Hedge Providers are entitled to receive any payment from the Pledged Revenues or the amounts held in the funds and accounts created under the Bond Ordinance on account of Principal of, premium, if any, or interest on the Subordinate Bonds or Hedge Payments under Subordinate Hedge Agreements. C-26 In the event that any of the Subordinate Bonds are declared due and payable before their expressed maturities because of the occurrence of an Event of Default (under circumstances when the provisions of preceding paragraph are not be applicable), no owners of Subordinate Bonds or related Qualified Hedge Providers may receive any accelerated payment from the Pledged Revenues or the amounts held in the funds and accounts created under the Bond Ordinance of Principal of, premium, if any, or interest on the Subordinate Bonds or Hedge Payments under Subordinate Hedge Agreements, until the owners of all Senior Bonds Outstanding and related Qualified Hedge Providers have received timely payment when due of all Principal of and interest on all such Senior Bonds and all Hedge Payments under related Senior Hedge Agreements. If any Event of Default shall have occurred and be continuing (under circumstances when the provisions of second preceding paragraph are not applicable), the owners of all Senior Bonds then Outstanding and related Qualified Hedge Providers shall be entitled to receive payment in full of all Principal and interest then due on all such Senior Bonds and all Hedge Payments under related Senior Hedge Agreements before the owners of the Subordinate Bonds or related Qualified Hedge Providers are entitled to receive any Payment from the Pledged Revenues or the amounts held in the funds and accounts created under the Bond Ordinance of Principal of, premium, if any, or interest on the Subordinate Bonds or Hedge Payments under Subordinate Hedge Agreements. The obligations of the District to pay to the owners of the Subordinate Bonds the Principal of, premium, if any, and interest thereon in accordance with their terms and to pay Hedge Payments to related Qualified Hedge Providers in accordance with the terms of the Subordinate Hedge Agreements shall be unconditional and absolute. Nothing in the Bond Ordinance shall prevent the owners of the Subordinate Bonds or related Qualified Hedge Providers from exercising all remedies otherwise permitted by applicable law or under the Bond Ordinance or the Subordinate Hedge Agreements upon default thereunder, subject to the rights contained in the Bond Ordinance of the owners of Senior Bonds and related Qualified Hedge Providers to receive cash, property, or securities otherwise payable or deliverable to the owners of the Subordinate Bonds and related Qualified Hedge Providers, and any Series Ordinance authorizing Subordinate Bonds may provide that, insofar as a trustee or paying agent for the Subordinate Bonds is concerned, the foregoing provisions shall not prevent the application by such trustee or paying agent of any moneys deposited with such trustee or paying agent for the purpose of the payment of or on account of the Principal of, premium, if any, and interest on such Subordinate Bonds and Hedge Payments under Subordinate Hedge Agreements if such trustee or paying agent did not have knowledge at the time of such application that such payment was prohibited by the foregoing provisions. Any series of Subordinate Bonds and related Subordinate Hedge Agreements may have such rank or priority with respect to any other series of Subordinate Bonds and related Subordinate Hedge Agreements as may be provided in the Series Ordinance authorizing such series of Subordinate Bonds and may contain such other provisions as are not in conflict with the provisions of the Bond Ordinance. Accession of Subordinate Bonds and Related Subordinate Hedge Agreements to Senior Status By proceedings authorizing all or any Subordinate Bonds, the District may provide for the accession of such Subordinate Bonds and related Subordinate Hedge Agreements to the status of complete parity with the Senior Bonds and related Senior Hedge Agreements if, as of the date of accession, the conditions of the Bond Ordinance described in subparagraphs (a), (e) and (f) above under the caption “SENIOR AND SUBORDINATE LIEN BONDS – Senior Bonds” are satisfied, on a basis which includes all Outstanding Senior Bonds and such Subordinate Bonds, and if on the date of accession: C-27 (a) the Debt Service Reserve Account contains an amount equal to the Debt Service Reserve Requirement computed on a basis which includes all Outstanding Senior Bonds and such Subordinate Bonds (but which excludes, in the case of both Outstanding Senior Bonds and such Subordinate Bonds, any SRF Bonds and Senior Uncovered Bonds); and (b) the Payments Account contains the amount which would have been required to be accumulated therein on the date of accession if the Subordinate Bonds had originally been issued as Senior Bonds. Credit Facilities and Hedge Agreements In connection with the issuance of any Bonds under the Bond Ordinance, the District may obtain or cause to be obtained one or more Credit Facilities providing for payment of all or a portion of the Principal of, premium, if any, or interest due or to become due on such Bonds, providing for the purchase of such Bonds by the Credit Facility Provider, or providing funds for the purchase of such Bonds by the District. In connection therewith the District shall enter into Credit Facility Agreements with such Credit Facility Providers providing for, among other things, (i) the payment of fees and expenses to such Credit Facility Providers for the issuance of such Credit Facilities; (ii) the terms and conditions of such Credit Facilities and the Bonds affected thereby; and (iii) the security, if any, to be provided for the issuance of such Credit Facilities. The District may secure any Credit Facility by an agreement providing for the purchase of the Bonds secured thereby with such adjustments to the rate of interest, method of determining interest, maturity, or redemption provisions as are specified by the District in the applicable Series Ordinance. The District may in a Credit Facility Agreement agree to directly reimburse such Credit Facility Provider for amounts paid under the terms of such Credit Facility, together with interest thereon; provided, however, that no Reimbursement Obligation shall be created for purposes of the Bond Ordinance until amounts are paid under such Credit Facility. Any such Reimbursement Obligation shall be deemed to be a part of the Bonds to which the Credit Facility relates which gave rise to such Reimbursement Obligation, and references to Principal and interest payments with respect to such Bonds shall include Principal and interest (except for Additional Interest and Principal amortization requirements with respect to the Reimbursement Obligation that are more accelerated than the amortization requirements for the related Bonds, without acceleration) due on the Reimbursement Obligation incurred as a result of payment of such Bonds with the Credit Facility. All other amounts payable under the Credit Facility Agreement (including any Additional Interest and Principal amortization requirements with respect to the Reimbursement obligation that are more accelerated than the amortization requirements for the related Bonds, without acceleration) shall be fully subordinate to the payment of debt service on the related class of Bonds. Any such Credit Facility shall be for the benefit of and secure such Bonds or portion thereof as specified in the applicable Series Ordinance. In connection with the issuance of any Bonds or at any time thereafter so long as such Bonds remain Outstanding, the District may enter into Hedge Agreements with Qualified Hedge Providers, and no other providers, with respect to any Bonds. The District shall authorize the execution, delivery, and performance of each Hedge Agreement in a Supplemental Ordinance, in which it shall designate the related Hedged Bonds. The District’s obligation to pay Hedge Payments may be secured by a pledge of, and lien on, the Pledged Revenues on a parity with the lien created by the Bond Ordinance to secure the related Hedged Bonds, or may be subordinated in lien and right of payment to the payment of the Bonds, as determined by the District. C-28 Other Obligations The District expressly reserves the right, at any time, to adopt one or more other bond ordinances and reserves the right, at any time, to issue any other obligations not secured by the amounts pledged under the Bond Ordinance. DEFAULT AND ENFORCEMENT Events of Default An “Event of Default” shall mean the occurrence of any one or more of the following: (a) failure to pay the Principal or redemption price of any Bond when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or (b) failure to pay any installment of interest on any Bond when and as such installment of interest shall become due and payable; or (c) default shall be made by the District in the performance of any obligation in respect to the Debt Service Reserve Account and such default shall continue for 30 days thereafter; or (d) the District shall (1) admit in writing its inability to pay its debts generally as they become due, (2) file a petition in bankruptcy or take advantage of any insolvency act, (3) make an assignment for the benefit of its creditors, (4) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or (5) be adjudicated a bankrupt; or (e) a court of competent jurisdiction shall enter an order, judgment, or decree appointing a receiver of the System or any of the funds or accounts established in the Bond Ordinance, or of the whole or any substantial part of the District’s property, or approving a petition seeking reorganization of the District under the federal bankruptcy laws or any other applicable law or statute of the United States of America or the State, and such order, judgment, or decree shall not be vacated or set aside or stayed within 60 days from the date of the entry thereof; or (f) under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of any of the funds or accounts established in the Bond Ordinance, or of the whole or any substantial part of the District’s property, and such custody or control shall not be terminated or stayed within 60 days from the date of assumption of such custody or control; or (g) the District shall fail to perform any of the other covenants, conditions, agreements, and provisions contained in the Bonds or in the Bond Ordinance (other than the covenant in the Bond Ordinance relating to continuing disclosure) on the part of the District to be performed, and such failure shall continue for 90 days after written notice specifying such failure and requiring it to be remedied shall have been given to the District by the owners of not less than, or a Credit Facility Provider securing not less than, 25% in aggregate Principal of the Bonds then Outstanding; provided, however, if the failure stated in such notice can be corrected, but not within such 90-day period, the District shall have 180 days after such written notice to cure such default if corrective action is instituted by the District within such 90-day period and diligently pursued until the failure is corrected; or C-29 (h) (1) an Event of Default relating to the non-payment of the Principal or redemption price or installment of interest shall occur under any Series Ordinance or (2) an Event of Default, other than as described in clause (h)(1) shall occur under any Series Ordinance; or (i) failure by any Credit Facility Provider to pay the purchase price of Bonds under any Credit Facility then in effect; or (j) delivery to the District by a Credit Facility Provider of written notice stating that an “Event of Default” has occurred under any Credit Facility Agreement; or (k) delivery to the District by a Qualified Hedge Provider of written notice stating that an “event of default” has occurred under any Senior Hedge Agreement. Remedies Upon the happening and continuance of any Event of Default described in clauses (a), (b) and (h)(1) above under the caption “Events of Default” as to any Senior Bond, then and in every such case, upon the written declaration of the owners of more than 50% in aggregate Principal of all Senior Bonds then Outstanding or upon the written demand of a Credit Facility Provider securing more than 50% in aggregate Principal of the Senior Bonds then Outstanding, the Principal of all Senior Bonds then Outstanding shall become due and payable immediately, together with the interest accrued thereon to the date of such acceleration, at the place of payment provided therein, and interest on the Senior Bonds shall cease to accrue after the date of such acceleration, anything in the Bond Ordinance or in the Senior Bonds to the contrary notwithstanding. With respect to any Senior Bonds secured by a Credit Facility, only the applicable Credit Facility Provider may give written demand to declare the Principal of and accrued interest on such Senior Bonds to be immediately due and payable. Upon the happening and continuance of any Event of Default described in clause (i) above under the caption “Events of Default”, then and in every such case, upon the written declaration of the owners of more than 50% in aggregate Principal of the Senior Bonds of the affected series then Outstanding, the Principal of all Senior Bonds of the affected series then Outstanding shall become due and payable immediately, together with the interest accrued thereon to the date of such acceleration, at the place of payment provided therein, and interest on the Senior Bonds of the affected series shall cease to accrue after the date of such acceleration, anything in the Bond Ordinance or in the Senior Bonds of the affected series to the contrary notwithstanding. Upon the happening and continuance of any Event of Default described in clause (k) above under the caption “Events of Default”, then and in every such case, upon the written declaration of the owners of more than 50% in aggregate Principal of the Senior Bonds of the affected series then Outstanding, the Principal of all Senior Bonds of the affected series then Outstanding shall become due and payable immediately, together with the interest accrued thereon to the date of such acceleration, at the place of payment provided therein, and interest on the Senior Bonds of the affected series shall cease to accrue after the date of such acceleration, anything in the Bond Ordinance or in the Senior Bonds of the affected series to the contrary notwithstanding. Notwithstanding the foregoing, with respect to any Senior Bonds secured by a Credit Facility, only the applicable Credit Facility Provider may give written demand to declare the Principal of and accrued interest on such Senior Bonds to be immediately due and payable. Upon any declaration of acceleration under the Bond Ordinance, the District shall immediately draw under the applicable Credit Facility to the extent permitted by the terms thereof that amount which, together with other amounts on deposit under the Bond Ordinance, shall be sufficient to pay the Principal of and accrued interest on the related Senior Bonds so accelerated. C-30 The above provisions, however, are subject to the condition that if, after the Principal of the Senior Bonds shall have been so accelerated, all arrears of interest upon such Bonds, and interest on overdue installments of interest at the rate on such Bonds, shall have been paid by the District, the Principal of such Bonds which has matured (except the Principal of any Bonds not then due by their terms except as provided above) have been paid, and the District shall also have performed all other things in respect to which it may have been in default under the Bond Ordinance, and, if applicable, each Credit Facility Provider shall have reinstated the Credit Facility in the full amount available to be drawn thereunder by written notice to the District, then, in every such case, the owners of more than 50% in aggregate Principal of all Senior Bonds then Outstanding by written notice to the District, may waive such default and its consequences and such waiver shall be binding upon the District and upon all owners of the Bonds; but no such waiver shall extend to or affect any subsequent default or impair any right or remedy consequent thereon. Notwithstanding the foregoing, as long as the applicable Credit Facility Provider shall not then continue to dishonor draws under the Credit Facility, no Event of Default with respect to the related Senior Bonds may be waived without the express written consent of such Credit Facility Provider. Upon the happening and continuance of any Event of Default, any owner of Senior Bonds then Outstanding affected by the Event of Default or a duly authorized agent for such owner may proceed to protect and enforce its rights and the rights of the owners of Senior Bonds by such of the following remedies as it shall deem most effectual to protect and enforce such rights: (1) by mandamus or other suit, action, or proceeding at law or in equity, enforce all rights of the owners of Senior Bonds, including the right to require the appointment of a receiver for the System or to exercise any other right or remedy provided by the Constitution and laws of the State and the Charter and to require the District to perform any other covenant or agreement contained in the Bond Ordinance; (2) by action or suit in equity, require the District to account as if it were the trustee of an express trust for the owners of the Senior Bonds; (3) by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the owners of the Senior Bonds; or (4) by pursuing any other available remedy at law or in equity or by statute. In the enforcement of any remedy under the Bond Ordinance, owners of Senior Bonds shall be entitled to sue for, enforce payment on, and receive any and all amounts then or during any default becoming, and at any time remaining, due from the District for Principal, redemption premium, interest, or otherwise, under any provision of the Bond Ordinance or of the Senior Bonds, and unpaid, with interest on overdue payments at the rate or rates of interest specified in such Senior Bonds, together with any and all costs and expenses of collection and of all proceedings under the Bond Ordinance and under such Senior Bonds, without prejudice to any other right or remedy of the owners of Senior Bonds, and to recover and enforce a judgment or decree against the District for any portion of such amounts remaining unpaid, with interest, costs, and expenses, and to collect from any moneys available for such purpose, in any manner provided by law, the moneys adjudged or decreed to be payable. If no Senior Bonds are then Outstanding or if no Event of Default with respect to any Senior Bonds has then occurred and is continuing, in the enforcement of any remedy under the Bond Ordinance, owners of Subordinate Bonds shall be entitled to sue for, enforce payment on, and receive any and all amounts then or during any default becoming, and at any time remaining, due from the District for C-31 Principal, redemption premium, interest, or otherwise, under any provision of the Bond Ordinance or of the Subordinate Bonds, and unpaid, with interest on overdue payments at the rate or rates of interest specified in such Subordinate Bonds, together with any and all costs and expenses of collection and of all proceedings under the Bond Ordinance and under such Subordinate Bonds, without prejudice to any other right or remedy of the owners of Subordinate Bonds, and to recover and enforce a judgment or decree against the District for any portion of such amounts remaining unpaid, with interest, costs, and expenses, and to collect from any moneys available for such purpose, in any manner provided by law, the moneys adjudged or decreed to be payable. Nothing in this paragraph is intended to diminish the rights of the owners of Subordinate Bonds described in clauses (1) through (4) above. No remedy conferred upon or reserved to the Bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given under the Bond Ordinance or now or hereafter existing at law or in equity or by statute. Application of Moneys After Default If an Event of Default occurs and shall not have been remedied, the District or a receiver appointed for the purpose shall apply all Pledged Revenues (except with respect to the Debt Service Reserve Account which does not secure Subordinate Bonds, Senior SRF Bonds and Senior Uncovered Bonds) as follows and in the following order of priority: (a) Expenses of Receiver and Paying Agent and Bond Registrar - to the payment of the reasonable and proper charges, expenses, and liabilities of any receiver and the Paying Agent and Bond Registrar under the Bond Ordinance; (b) Expenses of Operation and Maintenance and Renewals and Replacements - to the payment of all reasonable and necessary Expenses of Operation and Maintenance and major renewals and replacements to the System; (c) Principal or Redemption Price, Interest, and Hedge Payments Relating to Senior Bonds - to the payment of the interest and Principal or redemption price then due on the Senior Bonds and Hedge Payments then due under Senior Hedge Agreements, as follows: (i) Unless the Principal of all the Senior Bonds shall have become due and payable, all such moneys shall be applied as follows: first: To the payment to the persons entitled thereto of all installments of interest then due on the Senior Bonds, in the order of the maturity of such installments (with interest on defaulted installments of interest at the rate or rates borne by the Senior Bonds with respect to which such interest is due, but only to the extent permitted by law), and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the persons entitled thereto, without any discrimination or preference. If some of the Senior Bonds bear interest payable at different intervals or upon different dates and if at any time moneys from the Debt Service Reserve Account must be used to pay any such interest, the moneys in the Debt Service Reserve Account shall be applied (to the extent necessary) to the payment of all interest becoming due on the dates upon which such interest is payable to and including the next succeeding semiannual Interest Payment Date specified for the Senior Bonds. After such date, moneys in the Debt Service C-32 Reserve Account plus any other moneys available in the Payments Account shall be set aside for the payment of interest on Senior Bonds of each class (a class consisting of all Senior Bonds payable as to interest on the same dates) pro rata among Senior Bonds of the various classes on a daily basis so that there shall accrue to each owner of a Senior Bond throughout each Fiscal Year the same proportion of the total interest payable to such owner of a Senior Bond as shall so accrue to every other owner of a Senior Bond during such Fiscal Year. second: To the payment of the Hedge Payments due under any Senior Hedge Agreements pursuant to their terms. third: To the payment to the persons entitled thereto of the unpaid Principal of any of the Senior Bonds which shall have become due at maturity or upon mandatory redemption prior to maturity (other than Senior Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of the Bond Ordinance), in the order of their due dates, with interest upon such Senior Bonds from the respective dates upon which they became due, and, if the amount available shall not be sufficient to pay in full Senior Bonds due on any particular date, together with such interest, then to the payment first of such interest, ratably according to the amount of such interest due on such date, and then to the payment of such Principal, ratably according to the amount of such Principal due on such date, to the persons entitled thereto without any discrimination or preference. If some of the Senior Bonds mature (including mandatory redemption prior to maturity as a maturity) upon a different date or dates, and if at any time moneys from the Debt Service Reserve Account must be used to pay any such Principal becoming due, the moneys in the Debt Service Reserve Account not required to pay interest under paragraph first above shall be applied to the extent necessary to the payment of all Principal becoming due on the dates upon which such Principal is payable to and including the final annual Principal Maturity Date specified for the Senior Bonds. After such date, moneys in the Debt Service Reserve Account not required to pay interest plus any other moneys available in the Payments Account shall be set aside for the payment of Principal of Senior Bonds of each class (a class consisting of all Senior Bonds payable as to Principal on the same date) pro rata among Senior Bonds of the various classes which mature or must be redeemed pursuant to mandatory redemption prior to maturity throughout each Fiscal Year in such proportion of the total Principal payable on each such Senior Bond as shall be equal among all classes of Senior Bonds maturing or subject to mandatory redemption within such Fiscal Year. fourth: To the payment of the redemption premium on and the Principal of any Senior Bonds called for optional redemption pursuant to their terms. (ii) If the Principal of all the Senior Bonds shall have become due and payable, all such moneys shall be applied to the payment of the Principal and interest then due and unpaid upon the Senior Bonds, with interest thereon as aforesaid, and due and unpaid Hedge Payments under Senior Hedge Agreements, without preference or priority of Principal over interest or Hedge Payments or of interest over Principal or Hedge Payments, or of Hedge Payments over Principal or interest, or of any installment of interest over any other installment of interest, or of any Senior Bond over any other Senior Bonds, or of any such Hedge Payment over any other C-33 such Hedge Payment, ratably, according to the amounts due respectively for Principal, interest, and Hedge Payments, to the persons entitled thereto without any discrimination or preference. Rights of Credit Facility Provider Notwithstanding any other provision of the Bond Ordinance, in the event that the District shall draw under a Credit Facility any amount for the payment of Principal of or interest on any Bonds, then upon such payment the related Credit Facility Provider shall succeed to and become subrogated to the rights of the recipients of such payments and such Principal or interest shall be deemed to continue to be unpaid and Outstanding for all purposes and shall continue to be fully secured by the Bond Ordinance until the Credit Facility Provider, as successor and subrogee, has been paid all amounts owing in respect of such subrogated payments of Principal and interest. Such rights shall be limited and evidenced by having the District note the Credit Facility Provider’s rights as successor and subrogee on its records, and the District shall, upon request, deliver to the Credit Facility Provider (i) in the case of interest on the Bonds, an acknowledgment of the Credit Facility Provider’s ownership of interest to be paid on the Bonds specifying the amount of interest owed, the period represented by such interest, and the CUSIP numbers of the Bonds on which such interest is owed and (ii) in the case of Principal of the Bonds, either the Bonds themselves duly assigned to the Credit Facility Provider or new Bonds registered in the name of the Credit Facility Provider or in such other name as the Credit Facility Provider shall specify. Whenever moneys become available for the payment of any interest then overdue, the Credit Facility Provider shall be treated as to interest owed to it as and as if it had been the Bondholder of the Bonds upon which such interest is payable on any special record date therefor. No Obligation to Levy Taxes Nothing contained in the Bond Ordinance shall be construed as imposing on the District any duty or obligation to levy any taxes either to meet any obligation incurred in the Bond Ordinance or to pay the Principal of or interest on the Bonds. DEFEASANCE Except as otherwise provided in any Series Ordinance with respect to Bonds secured by a Credit Facility, Bonds for the payment or redemption of which sufficient moneys or sufficient Government Obligations shall have been deposited with the Paying Agent or the Depository of the Sinking Fund (whether upon or prior to the maturity or the redemption date of such Bonds) shall be deemed to be paid and no longer Outstanding under the Bond Ordinance; provided, however, that if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been duly given as provided in the Bond Ordinance or firm and irrevocable arrangements shall have been made for the giving of such notice; and, provided, further, that Bonds bearing interest at a Variable Rate shall not be deemed to have been paid and discharged within the meaning of the Bond Ordinance unless the interest rate payable on such Bonds is calculated at the maximum interest rate specified for such Bonds to the earlier of the first tender or redemption date. Government Obligations shall be considered sufficient for purposes of the Bond Ordinance only: (i) if such Government Obligations are not callable by the issuer of the Government Obligations prior to their stated maturity; and (ii) if such Government Obligations fall due and bear interest in such amounts and at such times as will assure sufficient cash to pay currently maturing interest and to pay Principal and redemption premiums, if any, when due on the Bonds without rendering the interest on any Tax-Exempt Bonds includable in gross income of any owner thereof for federal income tax purposes. C-34 The District may at any time surrender to the Bond Registrar for cancellation by it any Bonds previously authenticated and delivered under the Bond Ordinance which the District may have acquired in any manner whatsoever. All such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired. SUPPLEMENTAL ORDINANCES Supplemental Ordinances Not Requiring Consent of Bondholders The District, from time to time and at any time, subject to the conditions and restrictions in the Bond Ordinance, may adopt one or more Supplemental Ordinances which thereafter shall form a part of the Bond Ordinance, for any one or more or all of the following purposes: (a) To add to the covenants and agreements of the District in the Bond Ordinance other covenants and agreements thereafter to be observed or to surrender, restrict, or limit any right or power reserved in the Bond Ordinance to or conferred upon the District (including but not limited to the right to issue Senior Bonds); (b) To make such provisions for the purpose of curing any ambiguity, or of curing, correcting, or supplementing any defective provision contained in the Bond Ordinance, or in regard to matters or questions arising under the Bond Ordinance, as the District may deem necessary or desirable and not inconsistent with the Bond Ordinance; (c) To subject to the lien and pledge of the Bond Ordinance additional revenues, receipts, properties, or other collateral; (d) To evidence the appointment of successors to any Depository, Paying Agent, or Bond Registrar; (e) To modify, amend, or supplement the Bond Ordinance in such manner as to permit the qualification of the Bond Ordinance under the Trust Indenture Act of 1939 or any federal statute hereinafter in effect, and similarly to add to the Bond Ordinance such other terms, conditions, and provisions as may be permitted or required by such Trust Indenture Act of 1939 or any similar federal statute; (f) To make any modification or amendment of the Bond Ordinance required in order to make any Bonds eligible for acceptance by DTC or any similar holding institution or to permit the issuance of any Bonds or interests therein in book-entry form; (g) To modify any of the provisions of the Bond Ordinance in any respect if such modification shall not become effective until after the Bonds Outstanding immediately prior to the effective date of such Supplemental Ordinance shall cease to be Outstanding and if any Bonds issued contemporaneously with or after the effective date of such Supplemental Ordinance shall contain a specific reference to the modifications contained in such subsequent proceedings; (h) Subject to the provisions of the Bond Ordinance relating to the Project Fund, to modify the provisions of the Bond Ordinance with respect to the disposition of any moneys remaining in the Project Fund upon the completion of any Project; C-35 (i) To increase the size or scope of the System, to add other utilities to the System, to create additional subaccounts or to abolish any subaccounts within any account, or to change the amount of the Debt Service Reserve Requirement, but not below the amount specified in such definition; (j) To modify the Bond Ordinance to permit the qualification of any Bonds for offer or sale under the securities laws of any state in the United States of America; (k) To modify the Bond Ordinance to provide for the issuance of Senior Bonds or Subordinate Bonds, and such modification may deal with any subjects and make any provisions which the District deems necessary or desirable for that purpose; (l) To make such modifications in the provisions of the Bond Ordinance as may be deemed necessary by the District to accommodate the issuance of capital appreciation bonds or Bonds which bear interest at a Variable Rate; and (m) To modify any of the provisions of the Bond Ordinance in any respect (other than a modification of the type described below under the caption “SUPPLEMENTAL ORDINANCES – Supplemental Ordinances Requiring Consent of Bondholders”) requiring the unanimous written consent of the Bondholders); provided that for (i) any Outstanding Bonds which are assigned a Rating and which are not secured by a Credit Facility providing for the payment of the full amount of Principal and interest to be paid thereon, each Rating Agency shall have given written notification to the District that such modification will not cause the then applicable Rating on any Bonds to be reduced or withdrawn, and (ii) any Outstanding Bonds which are secured by Credit Facilities providing for the payment of the full amount of the Principal and interest to be paid thereon, each Credit Facility Provider shall have consented in writing to such modification. Any Supplemental Ordinance of the District may modify the provisions of the Bond Ordinance in such a manner, and to such extent and containing such provisions, as the District may deem necessary or desirable to effect any of the purposes stated above. As used in the Bond Ordinance, the term “modify” shall mean “modify, amend, or supplement” and the term “modification” shall mean “modification, amendment, or supplement.” Supplemental Ordinances Requiring Consent of Bondholders With the consent (evidenced as provided in the Bond Ordinance) of the owners of not less than a majority in aggregate Principal of the Outstanding Bonds of each class (senior and subordinate), voting separately by class, the District may from time to time and at any time adopt a Supplemental Ordinance for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Bond Ordinance or of any Supplemental Ordinance; provided, however, that no such Supplemental Ordinance shall: (1) extend the maturity date or due date of any mandatory sinking fund redemption with respect to any Bond Outstanding under the Bond Ordinance; (2) reduce or extend the time for payment of Principal of, redemption premium, or interest on any Bond Outstanding under the Bond Ordinance; (3) reduce any premium payable upon the redemption of any Bond under the Bond Ordinance or advance the date upon which any Bond may first be called for redemption prior to its stated maturity date; (4) give to any Senior Bond or Senior Bonds (or related Senior Hedge Agreements) a preference over any other Senior Bond or Senior Bonds (or related Senior Hedge Agreements); (5) permit the creation of any lien or any other encumbrance on the Pledged Revenues having a lien equal to or prior to the lien created under the Bond Ordinance for the Senior Bonds; (6) reduce the percentage of owners of C-36 senior or subordinate classes of Bonds required to approve any such Supplemental Ordinance; or (7) deprive the owners of the Bonds of the right to payment of the Bonds or from the Pledged Revenues (except as otherwise provided herein with respect to the Debt Service Reserve Account), without, in each case, the consent of the owners of all the affected Bonds then Outstanding. No amendment may be made under the Bond Ordinance which affects the rights or duties of any Credit Facility Provider securing any of the Bonds or any Qualified Hedge Provider under any Hedge Agreement without its written consent. If the District intends to enter into or adopt any Supplemental Ordinance as described in this caption, the District shall mail, by registered or certified mail, to the registered owners of the Bonds at their addresses as shown on the Bond Register, a notice of such intention along with a description of such Supplemental Ordinance not less than 30 days prior to the proposed effective date of such Supplemental Ordinance. The consents of the registered owners of the Bonds need not approve the particular form of wording of the proposed Supplemental Ordinance, but it shall be sufficient if such consents approve the substance thereof. Failure of the owner of any Bond to receive the notice required in the Bond Ordinance shall not affect the validity of any Supplemental Ordinance if the required number of owners of the Bonds of each class shall provide their written consent to such Supplemental Ordinance. Notwithstanding any provision of the Bond Ordinance to the contrary, upon the issuance of a Credit Facility to secure any Bonds and for the period in which such Credit Facility is outstanding, the Credit Facility Provider may have the consent rights of the owners of the Bonds which are secured by such Credit Facility pertaining to some or all of the amendments or modifications of the Bond Ordinance, to the extent provided in the applicable Series Ordinance. Notwithstanding the foregoing, if a Credit Facility Provider is granted the consent rights of the owners of any Bonds in a Series Ordinance and refuses to exercise such consent rights, either affirmatively or negatively, then the registered owners of the Bonds secured by the related Credit Facility may exercise such consent rights. Notice of Supplemental Ordinances The District shall cause the Bond Registrar to mail a notice by registered or certified mail to the registered owners of all Bonds Outstanding, at their addresses shown on the Bond Register or at such other address as has been furnished in writing by such registered owner to the Bond Registrar, setting forth in general terms the substance of any Supplemental Ordinance which has been adopted and approved. * * * C-37 SUMMARY OF THE CONTINUING DISCLOSURE AGREEMENT The following is a summary of certain provisions and covenants contained in the Continuing Disclosure Agreement. Such summary does not purport to be a complete statement of the terms of the Continuing Disclosure Agreement and accordingly is qualified in its entirety by reference thereto and is subject to the full text thereof. Definitions In addition to the definitions set forth in the Continuing Disclosure Agreement, the following capitalized terms shall have the following meanings: “Annual Filing Date” means the date, set in the Continuing Disclosure Agreement, by which the Annual Report is to be filed with the MSRB. “Annual Financial Information” means annual financial information as such term is used in paragraph (b)(5)(i) of the Rule and specified in the Continuing Disclosure Agreement. “Annual Report” means an Annual Report containing Annual Financial Information described in and consistent with the Continuing Disclosure Agreement. “Audited Financial Statements” means the annual financial statements (if any) of the District for the prior fiscal year, certified by an independent auditor as prepared in accordance with generally accepted accounting principles or otherwise, as such term is used in paragraph (b)(5)(i)(B) of the Rule and as specified in the Continuing Disclosure Agreement. “Certification” means a written certification of compliance signed by the Disclosure Representative stating that the Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure delivered to the Disclosure Dissemination Agent is the Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure required to be submitted to the MSRB under the Continuing Disclosure Agreement. A Certification shall accompany each such document submitted to the Disclosure Dissemination Agent by the District and shall include the full name of the Bonds and the 9-digit CUSIP numbers for all Bonds to which the document applies. “Disclosure Dissemination Agent” means Digital Assurance Certification, L.L.C., acting in its capacity as Disclosure Dissemination Agent (“DAC”) under the Continuing Disclosure Agreement, or any successor Disclosure Dissemination Agent designated in writing by the District pursuant to the Continuing Disclosure Agreement. “Disclosure Representative” means the Secretary-Treasurer of the District or his or her designee, or such other person as the District shall designate in writing to the Disclosure Dissemination Agent from time to time as the person responsible for providing Information to the Disclosure Dissemination Agent. “Failure to File Event” means the District’s failure to file an Annual Report on or before the Annual Filing Date. “Financial Obligation” as used in the Continuing Disclosure Agreement is defined in the Rule, as may be amended, as (i) a debt obligation; (ii) derivative instrument entered into in connection with, or C-38 pledged as a security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “Financial Obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Force Majeure Event” means: (i) acts of God, war, or terrorist action; (ii) failure or shut-down of the Electronic Municipal Market Access system maintained by the MSRB; or (iii) to the extent beyond the Disclosure Dissemination Agent’s reasonable control, interruptions in telecommunications or utilities services, failure, malfunction or error of any telecommunications, computer or other electrical, mechanical or technological application, service or system, computer virus, interruptions in Internet service or telephone service (including due to a virus, electrical delivery problem or similar occurrence) that affect Internet users generally, or in the local area in which the Disclosure Dissemination Agent or the MSRB is located, or acts of any government, regulatory or any other competent authority the effect of which is to prohibit the Disclosure Dissemination Agent from performance of its obligations under this Disclosure Agreement. “Holder” means any person (a) having the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries) or (b) treated as the owner of any Bonds for federal income tax purposes. “Information” means, collectively, the Annual Reports, the Audited Financial Statements, the Notice Event notices, the Failure to File Event notices, the Voluntary Event Disclosures and the Voluntary Financial Disclosures. “MSRB” means the Municipal Securities Rulemaking Board, or any successor thereto, established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934. “Notice Event” means any of the events enumerated in paragraph (b)(5)(i)(C) of the Rule and listed in the Continuing Disclosure Agreement. “Obligated Person” means any person, including the District, who is either generally or through an enterprise, fund, or account of such person committed by contract or other arrangement to support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond insurance, letters of credit, or other liquidity facilities). “Official Statement” means that Official Statement prepared by the District in connection with the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “Voluntary Event Disclosure” means information of the category specified in any of subsections (e)(vi)(1) through (e)(vi)(10) of Section 2 of the Continuing Disclosure Agreement that is accompanied by a Certification of the Disclosure Representative containing the information prescribed by Section 7(a) of the Continuing Disclosure Agreement. “Voluntary Financial Disclosure” means information of the category specified in any of subsections (e)(vii)(1) through (e)(vii)(9) of Section 2 of the Continuing Disclosure Agreement that is accompanied by a Certification of the Disclosure Representative containing the information prescribed by Section 7(b) of the Continuing Disclosure Agreement. C-39 Provision of Annual Reports The District shall provide, annually, an electronic copy of the Annual Report and Certification to the Disclosure Dissemination Agent, not later than the Annual Filing Date. Promptly upon receipt of an electronic copy of the Annual Report and the Certification, the Disclosure Dissemination Agent shall provide an Annual Report to the MSRB not later than 180 days after the end of each fiscal year of the District, commencing with the fiscal year ending June 30, 2022. Such date and each anniversary thereof is the Annual Filing Date. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in the Continuing Disclosure Agreement. If on the fifteenth (15th) day prior to the Annual Filing Date, the Disclosure Dissemination Agent has not received a copy of the Annual Report and Certification, the Disclosure Dissemination Agent shall contact the Disclosure Representative by telephone and in writing (which may be by e-mail) to remind the District of its undertaking to provide the Annual Report. Upon such reminder, the Disclosure Representative shall either (i) provide the Disclosure Dissemination Agent with an electronic copy of the Annual Report and the Certification) no later than two (2) business days prior to the Annual Filing Date, or (ii) instruct the Disclosure Dissemination Agent in writing that the District will not be able to file the Annual Report within the time required under the Continuing Disclosure Agreement, state the date by which the Annual Report for such year will be provided and instruct the Disclosure Dissemination Agent to immediately send a Failure to File Event notice to the MSRB in substantially the form specified in the Continuing Disclosure Agreement. If the Disclosure Dissemination Agent has not received an Annual Report and Certification by 10:00 a.m. Eastern time on the Annual Filing Date (or, if such Annual Filing Date falls on a Saturday, Sunday or holiday, then the first business day thereafter) for the Annual Report, a Failure to File Event shall have occurred and the Issuer irrevocably directs the Disclosure Dissemination Agent to immediately send a Failure to File Event notice to the MSRB in substantially the form specified in the Continuing Disclosure Agreement. If Audited Financial Statements of the District are prepared but not available prior to the Annual Filing Date, the District shall, when the Audited Financial Statements are available, provide at such time an electronic copy to the Disclosure Dissemination Agent, accompanied by a Certification for filing with the MSRB. The District may adjust the Annual Filing Date upon change of its fiscal year by providing written notice of such change and the new Annual Filing Date to the Disclosure Dissemination Agent, Paying Agent (if any) and the MSRB, provided that the period between the existing Annual Filing Date and new Annual Filing Date shall not exceed one year. Content of Annual Reports Each Annual Report shall contain Annual Financial Information with respect to the District, including the information provided in the Official Statement under the headings: “MANAGEMENT’S DISCUSSION AND ANALYSIS - Historical and Projected Sewer Rates and Charges,” “- Customer Accounts,” “- Largest User Charge Customers,” and “ – User Charge Revenues.” Each Annual Report shall include Audited Financial Statements prepared as described in the Official Statement. If Audited Financial Statements are not available, then, unaudited financial statements, prepared in accordance with generally accepted accounting principles or alternate accounting principles as described in the Official Statement will be included in the Annual Report. C-40 Any or all of the items listed above may be included by specific reference from other documents, including official statements of debt issues with respect to which the District is an Obligated Person (as defined by the Rule), which have been previously filed with each of the Securities and Exchange Commission or available on the MSRB Internet Website. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The District will clearly identify each such document so incorporated by reference. Reporting of Notice Events The occurrence of any of the following events with respect to the Bonds constitutes a Notice Event: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to rights of Bondholders, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 11. Rating changes; 12. Bankruptcy, insolvency, receivership or similar event of the Obligated Person; For the purposes of the event described in this subsection, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an Obligated Person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Obligated Person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Obligated Person. C-41 13. The consummation of a merger, consolidation, or acquisition involving an Obligated Person or the sale of all or substantially all of the assets of the Obligated Person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material; 15. Incurrence of a Financial Obligation of an Obligated Person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of an Obligated Person, any of which affect security holders, if material; and 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of an Obligated Person, any of which reflect financial difficulties. The District shall, in a timely manner not later than nine business days after its occurrence, notify the Disclosure Dissemination Agent in writing of the occurrence of a Notice Event. Such notice shall instruct the Disclosure Dissemination Agent to report the occurrence and shall be accompanied by a Certification. Such notice or Certification shall identify the Notice Event that has occurred, include the text of the disclosure that the District desires to make, contain the written authorization of the District for the Disclosure Dissemination Agent to disseminate such information, and identify the date the District desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth business day after the occurrence of the Notice Event). The Disclosure Dissemination Agent is under no obligation to notify the District or the Disclosure Representative of an event that may constitute a Notice Event. In the event the Disclosure Dissemination Agent so notifies the Disclosure Representative, the Disclosure Representative will within two business days of receipt of such notice (but in any event not later than the tenth business day after the occurrence of the Notice Event, if the District determines that a Notice Event has occurred), instruct the Disclosure Dissemination Agent that either (i) a Notice Event has not occurred and no filing is to be made or (ii) a Notice Event has occurred and the Disclosure Dissemination Agent is to report the occurrence pursuant to the Continuing Disclosure Agreement, together with a Certification. Such Certification shall identify the Notice Event that has occurred, include the text of the disclosure that the District desires to make, contain the written authorization of the District for the Disclosure Dissemination Agent to disseminate such information, and identify the date the District desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth business day after the occurrence of the Notice Event). If the Disclosure Dissemination Agent has been instructed by the District to report the occurrence of a Notice Event, the Disclosure Dissemination Agent shall promptly file a notice of such occurrence with the MSRB in accordance with the Continuing Disclosure Agreement. Voluntary Filings The District may instruct the Disclosure Dissemination Agent to file a Voluntary Event Disclosure or a Voluntary Financial Disclosure with the MSRB, from time to time pursuant to a Certification of the Disclosure Representative. C-42 Nothing in the Continuing Disclosure Agreement shall be deemed to prevent the District from disseminating any other information through the Disclosure Dissemination Agent using the means of dissemination set forth in the Continuing Disclosure Agreement or including any other information in any Annual Report, Audited Financial Statement, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure, in addition to that required by the Continuing Disclosure Agreement. If the District chooses to include any information in any Annual Report, Audited Financial Statement, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure in addition to that which is specifically required by the Continuing Disclosure Agreement, the District shall have no obligation under the Continuing Disclosure Agreement to update such information or include it in any future Annual Report, Audited Financial Statement, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure. Termination of Reporting Obligation The obligations of the District and the Disclosure Dissemination Agent under the Continuing Disclosure Agreement shall terminate with respect to the Bonds upon the legal defeasance, prior redemption or payment in full of all of the Bonds, when the District is no longer an Obligated Person, or upon delivery by the Disclosure Representative to the Disclosure Dissemination Agent of an opinion of counsel experienced in federal securities laws to the effect that continuing disclosure is no longer required. Disclosure Dissemination Agent The District has appointed Digital Assurance Certification, L.L.C. (“DAC”) as exclusive Disclosure Dissemination Agent under the Continuing Disclosure Agreement. The District may, upon thirty days written notice to the Disclosure Dissemination Agent, replace or appoint a successor Disclosure Dissemination Agent. Upon termination of DAC’s services as Disclosure Dissemination Agent, whether by notice of the District or DAC, the District agrees to appoint a successor Disclosure Dissemination Agent or, alternately, agrees to assume all responsibilities of Disclosure Dissemination Agent under the Continuing Disclosure Agreement for the benefit of the Holders of the Bonds. Notwithstanding any replacement or appointment of a successor, the District shall remain liable to the Disclosure Dissemination Agent until payment in full for any and all sums owed and payable to the Disclosure Dissemination Agent. The Disclosure Dissemination Agent may resign at any time by providing thirty days’ prior written notice to the District. Remedies in Event of Default In the event of a failure of the District or the Disclosure Dissemination Agent to comply with any provision of the Continuing Disclosure Agreement, the Holders’ rights to enforce the provisions of the Continuing Disclosure Agreement shall be limited solely to a right, by action in mandamus or for specific performance, to compel performance of the parties’ obligation under the Continuing Disclosure Agreement. Any failure by a party to perform in accordance with the Continuing Disclosure Agreement shall not constitute a default on the Bonds or under any other document relating to the Bonds, and all rights and remedies shall be limited to those expressly stated in the Continuing Disclosure Agreement. Amendment; Waiver Notwithstanding any other provision of the Continuing Disclosure Agreement, the District and the Disclosure Dissemination Agent may amend the Continuing Disclosure Agreement and any provision of the Continuing Disclosure Agreement may be waived, if such amendment or waiver is supported by an opinion of counsel expert in federal securities laws acceptable to both the District and the Disclosure C-43 Dissemination Agent to the effect that such amendment or waiver does not materially impair the interests of Holders of the Bonds and would not, in and of itself, cause the undertakings in the Continuing Disclosure Agreement to violate the Rule if such amendment or waiver had been effective on the date of the Continuing Disclosure Agreement but taking into account any subsequent change in or official interpretation of the Rule; provided neither the District or the Disclosure Dissemination Agent shall be obligated to agree to any amendment modifying their respective duties or obligations without their consent thereto. Notwithstanding the preceding paragraph, the Disclosure Dissemination Agent shall have the right to adopt amendments to the Continuing Disclosure Agreement necessary to comply with modifications to and interpretations of the provisions of the Rule as announced by the Securities and Exchange Commission from time to time by giving not less than 20 days written notice of the intent to do so together with a copy of the proposed amendment to the District. No such amendment shall become effective if the District shall, within 10 days following the giving of such notice, send a notice to the Disclosure Dissemination Agent in writing that it objects to such amendment. * * * [ THIS PAGE INTENTIONALLY LEFT BLANK ] APPENDIX D Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B [ THIS PAGE INTENTIONALLY LEFT BLANK ] 3013 Main Street Kansas City, MO 64108 www.raftelis.com May 9, 2022 Board of Trustees The Metropolitan St. Louis Sewer District 2350 Market Street St. Louis, MO 63103-2555 Raftelis Financial Consultants, Inc. (“Raftelis”) is submitting herewith our Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B prepared at the request of The Metropolitan St. Louis Sewer District (“District”) in connection with the issuance of its Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B (the “Series 2022B Bonds”). The purpose of the report is to set forth the findings of studies performed by Raftelis related to the wastewater system of the District (“System”). The report provides a financial feasibility analysis of the District’s Capital Improvement and Replacement Program (“CIRP”) as it relates to the issuance of the Series 2022B Bonds. The report also addresses other technical and financial issues that affect the operation of the System and the District’s ability to issue and repay wastewater revenue bonds issued during the study period of fiscal years 2022 through 2024. The District’s fiscal year ends on June 30 of each year. In preparing the report, Raftelis has examined the financial operations of the District through reviews of financial reports, operating and capital budgets, and other statistical and financial information as well as discussions with the District’s management and financial staff. We have performed various financial tests and analyses necessary to support our findings and opinions. In the development of the forecast of future financial operations summarized in the report, Raftelis has made certain assumptions with respect to conditions, events, and circumstances which may occur. The methodologies utilized in performing our studies follow generally accepted industry practice. Even though Raftelis believes such assumptions are reasonable and attainable for the purpose of forecasting the District’s future operations, the actual results may differ materially from the forecasts as the financial results are influenced by the conditions, events, and circumstances which actually occur. Subject to the limitations set forth herein, the report is based on information not within the control of Raftelis. Raftelis has not been requested to make an independent analysis, to verify the accuracy of information provided to us, or to render independent judgment of the validity of information provided by others. As such, Raftelis cannot, and does not, guarantee the accuracy thereof to the extent that such information, data, or opinions were based on information provided by others. Page 2 May 9, 2022 D-2 Use of the report, or any information contained therein, by a third party shall constitute a waiver and release of Raftelis from and against all claims and liability, including, but not limited to, liability for special, incidental, indirect, or consequential damages in connection with such use. In addition, to the extent permitted by applicable law, use of the report, or any information contained therein by a third party (other than the underwriters of the Series 2022B Bonds), shall constitute an agreement to defend and indemnify Raftelis from and against any claims and liability, including, but not limited to, liability for special, incidental, indirect, or consequential damages in connection with such use. The benefit of such releases, waivers, or limitations of liability shall extend to the related companies and subcontractors of any tier of Raftelis and the directors, officers, partners, employees, and agents of all released or indemnified parties. Raftelis shall have no liability to a third party for any losses or damages arising from or in any way related to this report and/or the information contained therein. Such express waiver of liability by the third party shall include all claims that the third party may allege in connection with Raftelis’ report including, but not limited to, breach of contract, breach of warranty, strict liability, negligence, and/or negligent misrepresentation. Our principal findings and opinions, which are discussed more fully in the report, are as follows: Wastewater System Financing The District has developed a detailed CIRP required to meet regulatory requirements, maintain the integrity of the System, and continue to address water quality issues. During the three-year study period (“study period”) the District plans to spend approximately $1.27 billion on major capital improvements to the System. As shown in Table 2 of the report, capital program requirements are projected to be funded from a combination of available funds on hand, senior and subordinate revenue bond proceeds, annual operating revenues, grants and contributions and interest income. Approximately 32 percent of total major capital improvement expenditures are anticipated to be funded from operating revenues and the drawdown of available fund balances and approximately 65 percent will be debt financed. Less than 3 percent of major capital improvements are anticipated to be financed by grants and contributions and interest earned on construction funds. The average number of wastewater customers served by the District during fiscal year 2021 was approximately 428,200. Slight increases in the number of customers are projected during the study period based on analysis of historical trends. District revenue is derived principally from charges for wastewater service. The existing schedule of wastewater rates has been in effect since July 1, 2021. The Board adopted these wastewater rates on June 10, 2021 by Ordinance 15669. Page 3 May 9, 2022 D-3 The District has thirteen senior revenue bond issues currently outstanding (excluding the Series 2022B Bonds) and eighteen subordinate series of revenue bonds issued under the state’s revolving fund program (“SRF”) and Department of Natural Resources Direct Loan program currently outstanding. The thirteen senior revenue bonds include a loan with the United States Environmental Protection Agency under the Water Infrastructure Finance and Innovation Act (“WIFIA”) loan program in December 2018. The District’s previous bond authorizations from elections on February 3, 2004 ($500 million), August 5, 2008 ($275 million), and June 5, 2012 ($945 million) have been fully utilized. The District’s bond authorization of $900 million approved by voters on April 5, 2016 has been partially utilized. After the issuance of the 2022B Bonds, the District will have $253.1 million of remaining bond authorization from the 2016 election and $500 million of bond authorization received at the election held on April 6, 2021. The proceeds of the Series 2022B Bonds will be used to finance additions, extensions, and improvements to the System and pay the costs of issuance of the Series 2022B Bonds. The District may issue a refunding portion of up to $12.72 million of Series 2022B Bonds that would refund the remainder of the currently outstanding Series 2012A Bonds and Series 2012B Bonds. The analysis in this report assumes that this refunding will not occur. If it does occur, the District intends to maintain a similar repayment schedule as the currently outstanding bonds with lower total payments each year. The Master Bond Ordinance adopted by the Board on April 22, 2004, as supplemented and amended by ordinances adopted by the Board for each bond issue, including the ordinance adopted by the Board for the Series 2022B Bonds (the “Bond Ordinance”), establishes covenants between the District and bondholders and various terms and conditions related to the Bonds. The cash flow analysis of projected wastewater utility revenue and revenue requirements presented in Table 9 of the report shows that projected revenues, including projected revenue increases, will be sufficient to fund the operation and maintenance of the System, provide debt service coverage in excess of the requirements of the Bond Ordinance and continue full funding of the CIRP. Based on the financial projections and analyses presented in the report, it is our opinion that the District will be able to adequately finance the CIRP, meet all known cash requirements of the System, and comply with all Bond Ordinance financial and rate covenants during the study period. Bond Covenant Compliance The adopted wastewater charges for fiscal years 2022 through 2024 will allow the District to issue additional revenue bonds within the study period as currently anticipated and make needed improvements and replacements of the System. Page 4 May 9, 2022 D-4 Indicated debt service coverage levels are above the minimum requirements set forth in the Bond Ordinance. The additional bonds test required for the issuance of the Series 2022B Bonds has been met, as shown in the Additional Bonds Tests on page D-30. Conclusion Based on the financial study performed by Raftelis related to the System, it is our opinion that the District’s organizational structure, planned CIRP, and financing plans are sound for purposes of supporting the Series 2022B Bonds and subsequent bonds required to support the full implementation of the CIRP for the 2022 through 2024 fiscal years. The summary statements presented in this letter do not address all of the issues examined and described in the full report. Accordingly, the findings and conclusions presented herein should not be considered complete except in the context of the detailed descriptions and information contained in the report. We appreciate the opportunity to be of service to the District in this important matter. Very truly yours, RAFTELIS FINANCIAL CONSULTANTS, INC. Thomas A. Beckley Vice President The Metropolitan St. Louis Sewer District Contents D-5 Contents Page Introduction ........................................................................................................................... D-6 Purpose .............................................................................................................................. D-6 Scope ................................................................................................................................. D-6 Raftelis Financial Consultants' Qualifications .................................................................. D-7 Wastewater System Financing .............................................................................................. D-8 Capital Improvement and Replacement Program ............................................................. D-8 CIRP Financing ............................................................................................................... D-10 Wastewater Service Charges .......................................................................................... D-12 Wastewater Service Charge Components ................................................................... D-12 Other Charges and Fees .............................................................................................. D-14 Revenues ......................................................................................................................... D-15 Customer Growth ........................................................................................................ D-15 Wastewater Volumes .................................................................................................. D-16 Wastewater Revenues Under Projected Rates ............................................................ D-17 Other Operating Revenues .......................................................................................... D-18 Revenue Requirements ................................................................................................... D-20 Operation and Maintenance Expense .......................................................................... D-20 Routine Capital Improvements ................................................................................... D-21 Cash Financing of Capital Improvements ................................................................... D-21 Debt Service ................................................................................................................ D-21 Operating Reserve Allowance ........................................................................................ D-24 Financial Analysis ........................................................................................................... D-24 Wastewater Bill Comparison .......................................................................................... D-27 Bond Covenant Compliance ............................................................................................... D-29 Rate Covenants ............................................................................................................... D-29 Reasonable Charges ........................................................................................................ D-29 Adequate Maintenance ................................................................................................... D-30 Additional Bonds Tests ................................................................................................... D-30 Principal Assumptions ........................................................................................................ D-33 The Metropolitan St. Louis Sewer District Wastewater System Financing D-6 Report on the Financial Feasibility of The Metropolitan St. Louis Sewer District Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B Introduction The Metropolitan St. Louis Sewer District (“District”) is responsible for providing wastewater and stormwater services for the City of St. Louis, Missouri (“City”) and most of St. Louis County, Missouri (“County”). In order to continue to improve and expand its wastewater system (“System”), provide reliable service to its customers, and maintain compliance with state and federal environmental laws and regulations, the District has developed a major capital improvement and replacement program (“CIRP”). In order to provide for equitable recovery of capital financing costs from existing and future wastewater customers, the District plans to partially finance System improvements through the issuance of long-term debt. The remainder of the funds required to finance the CIRP will be obtained from annual operating revenues, interest income, grants and contributions, and funds on hand. Revenue bonds are issued pursuant to the District’s Charter, which was approved by the voters of the City and the County at a special election held on February 4, 1954 and amended at special elections held on November 7, 2000, June 5, 2012, and April 6, 2021 (“Charter”). All bonds are issued under the provisions of the Master Bond Ordinance adopted by the Board of Trustees (“Board”) on April 22, 2004, as supplemented and amended by ordinances adopted by the Board for each bond issue including the ordinance adopted by the Board on May 12, 2022 (the “Bond Ordinance”) for the Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B (the “Series 2022B Bonds”). Purpose The purpose of this report is to summarize findings of the financial feasibility study performed by Raftelis Financial Consultants, Inc. (“Raftelis”) related to the System and independently assess the financial feasibility of the District’s issuance of the Series 2022B Bonds. This report addresses financial issues that affect the operation of the System and the District’s ability to issue and repay wastewater revenue bonds. Scope This report addresses the organization and management of the District. Also included are the results of analyses related to existing and future financial requirements of the System based on a review of financial reports, ordinances, budgets and other information. Information The Metropolitan St. Louis Sewer District Wastewater System Financing D-7 from these documents was supplemented through meetings and conversations with key District representatives. Projections of revenue and revenue requirements of the System are shown in this report for a study period that includes fiscal years 2022 through 2024. Evaluation of the financial feasibility of the Series 2022B Bonds is based upon a review of historical financial information provided by the District, an examination of revenue and expenditure projections by District staff and Raftelis, and the preparation of cash flow analyses examining projected System operation and capital programming financing through fiscal year 2024. The level of debt service coverage for the Series 2022B Bonds and subsequent bonds projected to be issued through fiscal year 2024 is determined and compared with requirements of the Bond Ordinance. Raftelis Financial Consultants' Qualifications Raftelis was founded in 1993 and has grown to become one of the largest and most respected utility financial, rate, and management consulting firms in the nation. Raftelis has experience providing these services to hundreds of utilities across the country and abroad. Raftelis staff has provided bond feasibility reports for dozens of utilities throughout the United States for billions of dollars in bonds. Raftelis is a Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. Raftelis began working with the District in 2007 as the Consultant to the Rate Commission and was selected by the District in 2012 and again in 2017 to provide bond feasibility and rate consulting services to the District. The Metropolitan St. Louis Sewer District Wastewater System Financing D-8 Wastewater System Financing The general objectives of the District’s wastewater CIRP are to provide the facilities necessary to meet federal and state requirements, maintain the integrity of the System, and provide satisfactory levels of service and performance to customers. To accomplish these objectives, the District must have sufficient operating revenues and adequate funding for CIRP projects. The District uses proceeds of revenue bonds along with wastewater service charge revenues, grants, other revenues and available fund balances to meet the costs of the ongoing CIRP. Capital Improvement and Replacement Program Table 1 presents a summary of the historical and projected CIRP for fiscal years 2021 through 2024. These costs were obtained from the District’s supplemental budget documents and other data provided by District staff. Me t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t W a s t e w a t e r S y s t e m F i n a n c i n g D - 9 Table 1: Capital Improvement & Replacement Program Fiscal Year Ending June 30 2021 - 2024 Capital Improvement and Replacement Progam Needs FY 2021 FY 2022 FY 2023 FY 2024 Total Actual Budget Projected (1) Projected (1) 1. Asset Management - Capacity 124,335,000$ 116,852,075$ 92,405,406$ 111,622,715$ 445,215,196$ 2. Asset Management - Renewal 37,743,000 26,897,817 39,270,139 44,927,634 148,838,591 3. Cityshed 9,043,000 18,465,199 20,171,426 25,522,708 73,202,333 4. Combined Sewer Overflow 20,260,000 14,327,519 13,553,614 52,013,855 100,154,988 5. Districtwide - - 5,125,615 3,869,653 8,995,268 6. Sanitary Sewer Overflow (2) 92,840,000 70,787,521 93,257,668 53,756,856 310,642,046 7. Treatment Plants (3) 19,950,000 68,126,095 160,445,343 240,342,169 488,863,607 8.Subtotal: CIRP 304,171,000$ 315,456,226$ 424,229,212$ 532,055,591$ 1,575,912,028$ 9. Less: Capital Funded in O&M (Asset Management) (15,141,153) (8,936,609) (9,260,767) (10,527,929) (55,552,752) 10. Less: Non-recurring Projects & Studies (10,555,396) (10,915,553) (10,520,321) (8,999,673) (48,094,748) 11. Less: Project Liquidations - (29,203,553) (23,551,553) (27,273,812) (107,302,730) 12. Plus: Capitalized Internal Labor 10,618,145 10,936,689 11,264,790 11,602,733 56,373,172 13.Total: CIRP Needs (4)289,092,596$ 277,337,200$ 392,161,361$ 496,856,909$ 1,421,334,971$ (1) Budgeted and projected CIRP amounts are adjusted for historical levels of project delays and include 3.1% inflation from the estimated costs in FY 2021 dollars. (2) The investment is driven by Consent Decree requirements to eliminate at least 85% of all constructed SSO's by 12/31/2023. (3) The investment is necessary to repair aging infrastructure and to meet regulatory requirements. (4) CIRP costs for FY 2021 represent new appropriations approved in that year, and FY 2022 through FY 2024 represent estimated appropriations adjusted for inflation and net of prior years’ unspent appropriations released for future use. The Metropolitan St. Louis Sewer District Wastewater System Financing D-10 Table 3 Capital Improvement and Replacement Program The proposed (FY 2022 – FY 2024) CIRP is primarily focused on collection system improvement projects to meet the District’s Consent Decree requirements that include an estimated $217 million to eliminate sanitary sewer overflows and $80 million to reduce or eliminate combined sewer overflows. About $505 million is earmarked for system improvements throughout the District that includes asset management and collection system improvements. Improvements related to existing treatment plants are expected to cost about $469 million during the three-year study period. CIRP Financing Table 2 presents the proposed CIRP financing plan and summarizes the projected source and application of funds over the three-year study period. This plan reflects the recommendations of the Rate Commission and anticipates that proposed capital improvements will be financed from a combination of bond proceeds, annual operating revenues, and interest income. Interest income earned on invested capital improvement funds is available to meet capital improvement expenditures. Interest earnings are based on an assumed 2 percent average annual interest rate on funds maintained in the construction account. Line 10 indicates the estimated interest income earned on capital improvement program balances. D - 1 1 Me t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t W a s t e w a t e r S y s t e m F i n a n c i n g t Table 2: Capital Improvement & Replacement Program Financing Plan Fiscal Year Ending June 30 2021 - 2024 FY 2021 FY 2022 FY 2023 FY 2024 Total Actual Projected Projected Projected Sources of Funds 1. Beginning Year Balance (1) 179,379,861$ 285,537,380$ 315,231,086$ 319,361,566$ 2. Revenue Bond Proceeds (2) 157,194,201 134,122,073 153,767,351 263,938,949 709,022,575 3. Cash Financing of Construction (PAYGO) 137,578,156 116,500,000 111,000,000 109,000,000 474,078,156 4. State Revolving Loan Proceeds (2) 85,101,000 40,201,000 115,000,000 55,000,000 295,302,000 5. WIFIA Loan - - - - - 6. Capitalized Internal Labor 10,618,145 10,936,689 11,264,790 11,602,733 44,422,357 7. Commercial Paper - - - - - 8. Line of Credit - - - - - 9. Grants & Contributions 1,288,446 716,027 747,480 780,317 3,532,271 10. Interest Income 4,535,702 5,660,000 6,690,000 8,890,000 25,775,702 11.Subtotal: Available Funds 575,695,511$ 593,673,170$ 713,700,707$ 768,573,566$ 1,552,133,060$ Uses of Funds 12. Major Capital Improvements (289,092,596)$ (277,337,200)$ (392,161,361)$ (496,856,909)$ (1,455,448,066)$ 13. Issuance Costs (1,065,534) (1,104,884) (2,177,780) (2,812,903) (7,161,101) 14. Commercial Paper & Line of Credit Payments - - - - - 15.Subtotal: Uses of Funds (290,158,130)$ (278,442,084)$ (394,339,141)$ (499,669,812)$ (1,462,609,167)$ 16.End of Year Balance 285,537,380$ 315,231,086$ 319,361,566$ 268,903,753$ (1) Includes balance in Sanitary Replacement Fund, Project Bond Funds, WW OMCI and Construction Funds, Capital Improvement Surcharge Fund, and the Bond Place Special Taxing Subdistrict Fund. (2) Issuance costs are included in the total proceeds shown. The Metropolitan St. Louis Sewer District Wastewater System Financing D-12 Wastewater Service Charges Table 3 presents a summary of the District-wide charges imposed by the District since the beginning of fiscal year 2015 as well as the approved charges for the forecast period. The previous wastewater rates were adopted on June 9, 2016 and became effective on July 1, 2016, with a schedule of rate increases to take effect on July 1 of 2016, 2017, 2018 and 2019. A new wastewater rate change proposal was submitted to the Rate Commission on March 4, 2019. Under this proposal wastewater bills for typical residential customers were projected to increase by about 3 percent per year in fiscal years 2021 through 2024. Due to COVID-19, the rate increase proposed to go into effect on July 1, 2020 was postponed until October 1; the planned schedule of rate increases resumed July 1, 2021. These rates are part of the fifth set of rates to go through the Rate Commission review procedures mandated by the Charter The Rate Commission completed its deliberations and submitted a Rate Recommendation Report to the Board of Trustees on August 16, 2019.The Board has approved the rate increases from the Rate Recommendation Report for fiscal years 2021 through 2024. The next rate increase is schedule to go into effect on July 1, 2022. The rates consist of a monthly base charge, a uniform volume charge, and extra strength surcharges for biochemical oxygen demand (“BOD”) in excess of 300 milligrams per liter (“mg/l”) or chemical oxygen demand (“COD”) in excess of 600 mg/l, and suspended solids (“SS”) in excess of 300 mg/l. The base charge includes a billing and collection charge component and a system availability charge component that are applicable to all customer classes. A compliance charge is applied to certain non-residential customers, in addition to the base charge, to recover monitoring and pretreatment program related costs. As a part of the 2011 Rate Commission proceedings, the District further differentiated the compliance charge into tiers to better reflect the cost of providing these services to different non-residential customers served by the District. The Metropolitan St. Louis Sewer District Wastewater System Financing D-14 In addition to the normal and excess strength wastewater service charges, the District also imposes a number of other charges to meet cost related to growth and system operations. The District imposes District-wide sewer system connection fees per Ordinance 14854 adopted in 2018. Under this system of capital recovery charges, new customers buy into the wastewater system so that they are on an equal equity basis with customers having similar service requirements. The current charge is based on a unit equity value of $2.73 per gallon of wastewater per day attributed to each new customer. For all single-family residential customers, the sewer system connection fee is $1,126. For non-residential customers, the charge varies from $1,126 for customers served by a 5/8 or 3/4-inch water meter to $65,493 for customers served by a 10-inch water meter. A $0.08 per gallon charge for septage or other wastewater hauled to the Bissell Wastewater Treatment Plant is imposed on all permitted waste haulers that serve customers having septic tanks, cesspools, private treatment facilities, or customers otherwise not connected to the District’s sewer system per Ordinance 12716, adopted on August 14, 2008. Costs incurred for sampling and testing wastewater samples from industrial users are recovered by a system of wastewater monitoring fees. These fees are typically published in ordinances updating the wastewater service charges. A number of engineering and service fees are also applied to reimburse the District for various services such as plan review, construction permits, construction related inspections, machine taps, project bid fees, provision of blueprint and microfilm copies, and permitting pretreatment customers. The Metropolitan St. Louis Sewer District Wastewater System Financing D-15 Revenues District revenue is derived primarily from charges for wastewater service, including revenues from extra strength surcharges. Other sources of income include dedicated subdistrict assessments, connection fees, waste hauler permits, industrial monitoring charges, various engineering fees, interest earnings, late charges and other operating income. Table 4 presents a summary of the historical and projected average number of wastewater customers served by the District. Customer projections in FY 2023 and FY 2024 are based on an analysis of historic growth patterns by customer class during the past five years; projections for FY 2022 are based on actual customer connections through February 2022 as well as a forecast of accounts for the remainder of the fiscal year. As indicated by Table 4, the number of metered customers is projected by the District to remain fairly stable reflecting continuation of the modest growth experienced in recent years. Likewise, the number of unmetered customers, principally located within the City of St. Louis, is projected to increase modestly during the study period. Table 4. Historical and Projected Average Customer Accounts Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Metered Customers 1. Single Family 305,900 306,500 306,700 306,700 2. Multi-Family 20,600 20,600 20,500 20,500 3. Non-Residential 24,000 24,000 24,000 24,000 4.Subtotal: Metered Customers 350,500 351,100 351,200 351,200 Unmetered Customers 5. Single Family 56,800 57,000 57,000 57,100 6. Multi-Family 20,900 20,900 21,000 21,000 7. Non-Residential - - - - 8.Subtotal: Unmetered Customers 77,700 77,900 78,000 78,100 Total Customer Accounts 9. Single Family 362,700 363,500 363,700 363,800 10. Multi-Family 41,500 41,500 41,500 41,500 11. Non-Residential 24,000 24,000 24,000 24,000 12.Total: Customer Accounts 428,200 429,000 429,200 429,300 13.% Change 0.2% 0.0% 0.0% The Metropolitan St. Louis Sewer District Wastewater System Financing D-16 Table 5 presents a summary of historical and projected contributed or billed wastewater volumes. Billed wastewater volume is the amount of wastewater flow contributed to the System by residential and non-residential customers. The determination of contributed wastewater volume for unmetered residential customers is based on an analysis of customers with similar characteristics using statistical methods and was updated in the past three years for the most recent Rate Change Proposal. The indicated unit volumes which became effective on July 1, 2016 are shown along with the current allowance below: 14.5 gallons per day (“gpd”) for each room 54.2 gpd for each water closet 45.2 gpd for each bath or separate shower Billable wastewater volumes for all single-family customers with metered water usage are determined on the basis of water billed during the period best equated to contributed wastewater volume. For District customers, this period is from January 1 through March 31. Billed wastewater volume for non-residential customers is equal to actual metered water usage less exemption allowances for any water that does not enter the sewer system. Multifamily customers are either billed based on actual annual water usage or the average annual water usage established during the best equated period for wastewater contribution, depending on the billing method selected by each multifamily customer. The selected billing basis is permanent and cannot be changed. Other projected volumes are based on the recognition of historical billing volumes and trends. Also considered are projections of numbers of customers and average historic billed volume per customer. The District’s FY 2023 budget expects metered residential wastewater volumes to decrease by approximately 6% based on preliminary analysis of winter period water use. Table 7 Historical an The Metropolitan St. Louis Sewer District Wastewater System Financing D-17 A summary of historical revenues for fiscal year 2021 and projected wastewater revenues under approved rates for fiscal years 2022 through 2024 is presented in Table 6. Projected billed wastewater revenues do not include allowances for bad debt, refunds or billing adjustments. These billing adjustments are included with other operating revenues in Table 7. Table 5. Historical and Projected Contributed Wastewater Volumes (Ccf) Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Metered Customers 1. Single Family 19,424,215 19,749,033 18,576,389 18,093,409 2. Multi-Family 7,925,390 7,943,288 7,377,197 7,183,946 3. Non-Residential 17,890,592 19,770,557 20,759,085 21,174,267 4.Subtotal: Metered Customers 45,240,197 47,462,878 46,712,671 46,451,621 Unmetered Customers 5. Single Family 6,234,970 6,273,811 6,280,140 6,287,078 6. Multi-Family 4,030,607 4,040,007 4,045,844 4,050,253 7. Non-Residential - - - - 8.Subtotal: Unmetered Customers 10,265,578 10,313,818 10,325,983 10,337,331 Total Contributed Wastewater Volume 9. Single Family 25,659,185 26,022,844 24,856,529 24,380,487 10. Multi-Family 11,955,997 11,983,295 11,423,041 11,234,198 11. Non-Residential 17,890,592 19,770,557 20,759,085 21,174,267 12.Total: Contributed Volumes 55,505,775 57,776,696 57,038,654 56,788,952 13.% Change 4.1% -1.3% -0.4% The Metropolitan St. Louis Sewer District Wastewater System Financing D-18 Projected other wastewater utility revenues are presented in Table 7. These revenues are grouped in the same manner as summarized in the District’s budget documents. All of these revenues are used to offset operating costs. The District anticipates receiving contributions from Missouri American Water for a share of capacity in the Lower Meramec River Wastewater Treatment Plant. District staff estimates that this revenue will average about $1.7 million per year for FY 2022-2024. Table 8 Historical and Projected Billed Wastewater Service Revenue Table 6. Historical and Projected Wastewater Revenues under Approved and Recommended Rates Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Metered 1. Residential 260,617,803$ 273,260,284$ 274,955,791$ 281,363,685$ Non-Residential 2. Normal Strength 102,123,668 113,844,118 122,298,088 129,359,752 3. Extra Strength 5,816,416 6,006,802 6,636,607 6,823,134 4.Subtotal: Metered Customers 368,557,888$ 393,111,204$ 403,890,486$ 417,546,571$ Unmetered 5. Residential 50,768,635$ 53,133,283$ 55,389,104$ 57,501,930$ Total Wastewater Revenues 6. Residential 311,386,438$ 326,393,568$ 330,344,896$ 338,865,615$ 7. Non-Residential 107,940,084 119,850,920 128,934,695 136,182,886 8.Total: Wastewater Revenues 419,326,522$ 446,244,487$ 459,279,591$ 475,048,501$ 9.% Change - 6.4% 2.9% 3.4% The Metropolitan St. Louis Sewer District Wastewater System Financing D-19 Table 7. Projected Other Wastewater Operating Revenues Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Other Operating Revenue 1. Billing Adjustments (1) 4,181,157$ 5,091,997$ 4,793,200$ 4,980,400$ 2. Bad Debt Provision (5,353,771) (5,470,118) (5,735,040) (5,964,000) Other Fees 3. Construction Inspection Fees 595,194$ 891,615$ 853,000$ 853,000$ 4. Waste Hauler Fees 628,679 671,055 668,000 668,000 5. All Other Fees (2) 867,050 830,286 784,000 784,000 6.Subtotal: Other Fees 2,090,923$ 2,392,956$ 2,305,000$ 2,305,000$ 7. Miscellaneous Revenues (3) 5,308,489 6,437,168 3,890,022 4,167,200 8.Subtotal: Other Operating Revenue 6,226,797$ 8,452,003$ 5,253,182$ 5,488,600$ 9. Other Non-Operating Revenue (4) (284,410) (543,623) 544,000 544,000 10. Connection Fee Revenue 1,592,052 1,257,842 1,124,000 1,124,000 11.Total: Other Miscellaneous Revenue 7,534,439$ 9,166,222$ 6,921,182$ 7,156,600$ % Change 21.7% -24.5% 3.4% (1) Includes late charges, refunds, adjustments, lien interest and fees, and other adjustments. (2) Includes plan review fees, submittal fees, monitoring cost fees, pretreatment discharge permits, and all other fees. (3) Includes reimbursements, reimbursable engineering and maintenance, Missouri American Water contributions, settlement proceeds, and all other miscellaneous revenue. (4) Includes rental income, clean water surcharge, and sale of fixed assets. The Metropolitan St. Louis Sewer District Wastewater System Financing D-20 Revenue Requirements The revenue required to provide for the continued operation of the District must be sufficient to meet the cash requirements for System operation. Revenue requirements include (1) total System operation and maintenance expenses; (2) expenditures for routine and major capital improvements met directly from revenues; (3) total System debt service (consisting of principal and interest payments); and (4) provision for an adequate operating reserve. Projections of the cash requirements to meet these System expenditures for the period of 2022 through 2024 from the rates approved by the Board for those years are presented in this section. Operation and maintenance expense includes the total annual salaries and wages of District personnel, costs for materials and supplies, fuel and electrical power costs and other costs such as employee benefits, insurance, and contract services. Since these costs are an ongoing annual obligation of the District, they are met from wastewater and stormwater operating revenues as they are incurred. Wastewater related operation and maintenance expense for fiscal year 2021 are actual results, fiscal year 2022 are forecasted using actual results through February 2022 and projections for the remainder of the year, and fiscal years 2023 and 2024 are the District’s preliminary budgets for those years. The Metropolitan St. Louis Sewer District Wastewater System Financing D-21 Expenditures for routine annual capital improvements include those costs that tend to be routinely incurred each year for normal replacements such as vehicles and office equipment, and minor improvements or repairs. Since the costs of these improvements are a continuing expense to be met each year, the District appropriately finances these expenditures from current wastewater revenues. These expenditures are included in the District's annual budgets as Capital Outlay costs. In addition to cash financing routine capital improvements, the District partially finances major capital improvements on a cash or pay-as-you-go basis. The District is expected to continue to cash finance all routine capital improvements and a portion of the CIRP. The amount of projected cash financing of the major capital improvement program was previously identified on Line 3 of Table 2. The District issued its first District-wide series of revenue bonds in April 2004 and additional Senior Bonds were issued in November 2006, November 2008, January 2010, December 2011, August 2012, November 2012, December 2013, December 2015, December 2016, December 2017, December 2018, November 2019, December 2020, May 2021, and May 2022 with the 2010 issue being issued under the Build America Bond federally subsidized program, the 2018A WIFIA loan with the EPA, and the 2021 and 2022 issues as Direct Placement Bonds with Morgan Stanley that are on parity with the District’s Senior Bonds. Total Parity Debt issued to date totals $2,150,587,204 as indicated by the table below. The District has also issued eighteen subordinate series of revenue bonds through the Missouri State Revolving Fund (“SRF”) and Department of Natural Resources Direct Loan program. The total amount of Subordinate Bonds issued to date is $769,771,000. The Metropolitan St. Louis Sewer District Wastewater System Financing D-22 Additional revenue bonds are assumed to have 30-year terms with an assumed interest rate scale of approximately 4.35 percent in fiscal years 2023 and 2024. Additional revenue bonds issued as part of the SRF loan program are expected to have 20-year terms and a net effective annual interest and administration cost of about 1.75 percent per year to 2.25 percent per year. Table 8 presents debt service in two ways: by Payments to Sinking Fund, which is used for modeling the District's cash flow in Table 9, and Payments to Bondholders, which is used to determine coverage in accordance with the District's bond covenants. The Payments to Bondholders for FY 2021 through FY 2024 shown in Table 8 were provided by the District's co-Financial Advisor, PFM Financial Advisors, LLC. The scheduling of the proposed revenue bond issues and SRF loans reflects current planning considerations, as recognized for purposes of this report. This is not intended to preclude the possible modification or rescheduling of issues, if desirable, due to market conditions, local financing policy, or other practical considerations. The Metropolitan St. Louis Sewer District Wastewater System Financing D-23 Table 8. Projected Debt Service Requirements Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Payments to Sinking Fund Revenue Bonds Existing 81,376,563$ 82,202,907$ 81,834,129$ 77,950,189$ Projected - 390,040 14,358,644 28,068,951 Subtotal: Revenue Bonds 81,376,563$ 82,592,946$ 96,192,773$ 106,019,139$ SRF Loans Existing 38,397,368$ 39,508,542$ 40,751,249$ 41,989,369$ Projected - - 2,219,250 5,794,740 Subtotal: SRF Loans 38,397,368$ 39,508,542$ 42,970,499$ 47,784,109$ Total: Debt Service to Sinking Fund 119,773,931$ 122,101,488$ 139,163,271$ 153,803,249$ Payments to Bondholders Revenue Bonds Existing 81,685,268$ 82,124,136$ 84,577,942$ 80,013,224$ Projected - - 12,130,058 25,428,326 Subtotal: Revenue Bonds 81,685,268$ 82,124,136$ 96,708,000$ 105,441,550$ SRF Loans Existing 37,616,306$ 40,459,625$ 41,792,693$ 44,155,085$ Projected - - - 4,438,500 Subtotal: SRF Loans 37,616,306$ 40,459,625$ 41,792,693$ 48,593,585$ Total: Debt Service to Bondholders 119,301,574$ 122,583,762$ 138,500,693$ 154,035,135$ The Metropolitan St. Louis Sewer District Wastewater System Financing D-24 Operating Reserve Allowance The operating reserve allowance is a recommended balance to accommodate fluctuations in annual revenues and expenditures. The existing revenue bond covenants require the District to maintain a minimum balance equal to 45 days of operation and maintenance expense. For this report, an operating reserve allowance equal to 60 days or about 16.4 percent of annual operating expense is assumed to be maintained, as provided by the current budget. Operating expense, as routinely presented in the District's annual budgets, is equal to the sum of operation and maintenance expense and routine annual capital improvements. The operating reserve for wastewater operations is projected to increase to about $138 million in fiscal year 2024. Financial Analysis A pro forma cash flow statement showing projected wastewater revenues and revenue requirements for the District during the study period is presented in Table 9. System revenues must be at least sufficient to finance the costs of operation and maintenance expense, routine annual capital improvements, and debt service costs on existing and proposed debt, while maintaining adequate operating reserve funds and complying with all revenue bond debt service coverage requirements. Annual revenues can also be used to finance a portion of the major capital improvement program. Table 9 presents annual wastewater revenues and expenditures. Line 1 of Table 9 shows projected revenue under the approved rates for each year of the study period. The Metropolitan St. Louis Sewer District Wastewater System Financing D-25 Table 9. Comparison of Projected Wastewater Revenue with Projected Revenue Requirements Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Wastewater Revenue 1 User Charge Revenue 419,326,522$ 446,244,487$ 459,279,591$ 475,048,501$ Other Miscellaneous Revenue 2. Other Operating Revenue (1) 6,226,797$ 8,452,003$ 5,253,182$ 5,488,600$ 3. Connection Fee Revenue 1,592,052 1,257,842 1,124,000 1,124,000 4.Subtotal: Other Miscellaneous Revenue 7,818,849$ 9,709,844$ 6,377,182$ 6,612,600$ 5. Interest Income - Operating and Capital (2) 5,740,324 7,435,003 8,616,024 11,264,405 6.Total: Wastewater Revenue 432,885,695$ 463,389,335$ 474,272,797$ 492,925,506$ Operating Expenses 7. General Fund Operating Expenses 165,055,194$ 169,911,058$ 184,014,455$ 189,459,921$ 8. Other Operating Expenses 15,788,482 2,524,128 4,472,778 5,549,774 9.Subtotal: Operating Expenses (O&M)180,843,676$ 172,435,186$ 188,487,233$ 195,009,695$ 10.Net Revenue Available for Debt Service 252,042,019$ 290,954,149$ 285,785,564$ 297,915,811$ Debt Service (Payments to Sinking Fund) Revenue Bonds 11. Existing 81,376,563$ 82,202,907$ 81,834,129$ 77,950,189$ 12. Projected - 390,040 14,358,644 28,068,951 13.Subtotal: Revenue Bonds 81,376,563$ 82,592,946$ 96,192,773$ 106,019,139$ SRF Loans 14. Existing 38,397,368$ 39,508,542$ 40,751,249$ 41,989,369$ 15. Projected - - 2,219,250 5,794,740 16.Subtotal: SRF Loans 38,397,368$ 39,508,542$ 42,970,499$ 47,784,109$ 17.Total: Debt Service 119,773,931$ 122,101,488$ 139,163,271$ 153,803,249$ Other Revenues and Expenditures 18. Other Non-Operating Revenue (284,410)$ (543,623)$ 544,000$ 544,000$ 19. Routine Annual Capital Improvements (2,848,166) 4,297,138 5,054,200 5,160,338 20. Cash Financing of Capital Improvements (3) 140,111,095 122,160,000 117,690,000 117,890,000 21. Non-recurring Projects & Studies 10,555,396 10,915,553 10,520,321 8,999,673 22. Commercial Paper & Line of Credit Payments - - - - 23.Subtotal: Other Expenditures 147,818,325$ 137,372,691$ 133,264,521$ 132,050,012$ 24.Net Annual Balance (4) (15,834,647)$ 30,936,348$ 13,901,772$ 12,606,551$ 25. Beginning Balance (5) 96,667,659$ 80,833,012$ 111,769,359$ 125,671,131$ 26. Ending Balance (5) 80,833,012 111,769,359 125,671,131 138,277,683 Debt Service (Payments to Bondholders) 27. Revenue Bonds 81,685,268$ 82,124,136$ 96,708,000$ 105,441,550$ 28. SRF Loans 37,616,306 40,459,625 41,792,693 48,593,585 29.Total: Debt Service 119,301,574$ 122,583,762$ 138,500,693$ 154,035,135$ Debt Service Coverage 30. Revenue Bonds 3.09 3.54 2.96 2.83 31. Total Debt 2.11 2.37 2.06 1.93 (1) Includes interest earned from the Missouri American Water Loan and City of Arnold. (2) Does not match ACFR due to exclusion of $4,435,778 net unrealized losses. (3) Includes return of interest to capital funds. (4) Net Annual Balance is Net Revenue Available for Debt Service (Line 10) less Debt Service and Other Expenditures (Lines 17 and 23) plus Other Non-Operating Revenue (Line 18) (5) Includes funds set aside for a minimum operating reserve equal to 60 days of operating expenses. The Metropolitan St. Louis Sewer District Wastewater System Financing D-26 As indicated on Lines 2 and 3 of Table 9, other operating revenue and connection fee revenue, previously projected in Table 7, are available for the wastewater system. Projected revenue from District-wide connection fees are expended as part of the cash financing of major improvements line item (Line 20), which is the sum of Line 3 and Line 10 of Table 2. Interest income that is available from restricted or reserve funds for operating purposes is shown on Line 5 of Table 9. Interest income is estimated based on a 2.0 percent annual interest rate applied to the average beginning and end of year fund balances. Total revenue available for wastewater utility operations is shown on Line 6 of Table 9. Total operation and maintenance expense for the wastewater system, is shown on Lines 7 and 8 of Table 9. Line 10 shows the estimated net revenue remaining after deducting total projected operation and maintenance expense (Line 9) from total wastewater revenue (Line 6). This net wastewater revenue is available or pledged for debt service coverage purposes. Debt service requirements on existing and projected revenue bonds and SRF loans are presented on Lines 11 through 17. This debt financing program will provide a mechanism to spread the costs of major capital improvements over a portion of their useful lives and more equitably recover these costs from both current and future users of the improvements. Line 18 of Table 9 shows other non-operating revenue of the wastewater utility, previously shown on Line 9 of Table 7. Line 19 of Table 9 shows the total amount of routine annual improvements which are completely financed by annual revenues. Funds used to finance a portion of the major capital improvement program are reported as a cost on Line 20 of Table 9 and as a source of funds on Line 3 of Table 2. The net annual balance of annual revenues less expenditures is presented on Line 24. Lines 25 and 26 of Table 9 show the projected combined beginning and ending cash balances of the wastewater utility for each year of the study period exclusive of the targeted operating reserve balances. District staff provided information regarding the unencumbered balance of funds available at the beginning of fiscal year 2022. The Metropolitan St. Louis Sewer District Wastewater System Financing D-27 Wastewater Bill Comparison Table 10 presents a comparison of typical wastewater service bills under approved rates for fiscal years 2022 through 2024 for various billable wastewater volumes and customer types. As indicated in the table, the monthly wastewater bill for the average metered residential customer contributing 6 Ccf of wastewater per month will increase by 3.4 percent in 2022 with additional increases averaging 3.6 percent in FY 2023 and 2024. T Table 11 presents the results of a rate survey of the 50 largest U.S. cities based on published rates as of April 2022. St. Louis’ rates have risen more quickly than some of the other large cities in this survey, resulting in above average residential charges while the commercial charges are still below average for the representative customers. Table 10. Typical Bill Comparison Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Actual Proposed Proposed Wastewater Bills Single Family Residential (Metered) 1. 1 Ccf per month $ 31.40 $ 32.48 $ 33.61 $ 34.84 2. 5 Ccf per month $ 51.40 $ 53.16 $ 55.01 $ 57.04 3. 6 Ccf per month $ 56.40 $ 58.33 $ 60.36 $ 62.59 4. 10 Ccf per month $ 76.40 $ 79.01 $ 81.76 $ 84.79 5. 15 Ccf per month $ 101.40 $ 104.86 $ 108.51 $ 112.54 6. 20 Ccf per month $ 126.40 $ 130.71 $ 135.26 $ 140.29 Multi-Family Residential (Metered) 7. 20 Ccf per month $ 126.40 $ 130.71 $ 135.26 $ 140.29 8. 40 Ccf per month $ 226.40 $ 234.11 $ 242.26 $ 251.29 9. 60 Ccf per month $ 326.40 $ 337.51 $ 349.26 $ 362.29 Non-Residential (Normal Strength Wastewater) 10. 70 Ccf per month $ 380.84 $ 393.76 $ 407.47 $ 422.64 11. 100 Ccf per month $ 530.84 $ 548.86 $ 567.97 $ 589.14 12. 160 Ccf per month $ 830.84 $ 859.06 $ 888.97 $ 922.14 Non-Residential (Excess Strength Wastewater) (1) 13. 70 Ccf per month $ 593.27 $ 611.24 $ 632.31 $ 653.84 14. 100 Ccf per month $ 771.16 $ 794.90 $ 822.33 $ 850.69 15. 160 Ccf per month $ 1,099.05 $ 1,133.65 $ 1,172.85 $ 1,214.05 (1) The 70, 100, and 160 Ccf bills assume excess strength of 150, 200, and 250 mg/l, respectively, of suspended solids and BOD. The Metropolitan St. Louis Sewer District Wastewater System Financing D-28 Meter Size 5/8" 5/8" 3/4" 1" 2" Gallons 4,488 5,984 11,221 74,805 7,480,500 Ccf 6.0 Rank 8.0 Rank 15.0 Rank 100.0 Rank 10000.0 Rank Population Rank ($) ($) ($) ($) ($) Albuquerque 32 NM 13.10 49 16.47 49 28.24 44 174.10 44 17,128.35 44 Arlington 50 TX 37.03 24 44.93 25 72.58 27 419.20 28 39,587.40 28 Atlanta 38 GA 76.70 6 108.08 4 217.91 3 1,551.56 2 156,882.56 2 Austin 11 TX 59.76 9 79.64 8 147.87 9 920.30 8 91,010.30 8 Bakersfield 48 CA 18.36 47 18.36 48 18.36 50 169.00 46 16,900.00 46 Baltimore 30 MD 69.94 7 88.90 7 163.96 7 993.70 6 94,976.24 6 Boston 24 MA 45.12 16 62.36 13 117.00 12 813.00 9 77,295.00 9 Charlotte 16 NC 45.50 15 56.36 16 94.37 17 568.98 18 54,373.85 17 Chicago 3 IL 18.54 46 24.71 43 46.34 39 308.94 39 30,894.47 38 Colorado Springs 40 CO 30.83 33 35.93 36 53.78 38 315.76 38 28,530.76 39 Columbus 14 OH 43.31 17 53.03 17 87.05 19 500.15 22 52,414.15 18 Dallas 9 TX 29.11 36 37.20 34 67.32 31 350.65 33 34,139.87 33 Denver 19 CO 36.03 25 43.49 26 76.45 26 407.35 29 37,436.82 29 Detroit 27 MI 32.15 30 40.68 30 70.57 28 442.23 26 42,718.59 26 El Paso 23 TX 34.73 28 39.71 32 57.14 37 294.53 40 25,021.92 40 Fort Worth 13 TX 31.87 32 40.21 31 69.70 29 421.75 27 40,642.19 27 Fresno 34 CA 25.75 41 25.75 42 25.75 46 197.30 43 19,730.00 43 Houston 4 TX 53.50 12 74.50 9 148.00 8 752.45 11 74,018.03 10 Indianapolis 15 IN 60.41 8 73.46 10 121.83 10 722.33 12 70,661.87 11 Jacksonville 12 FL 45.96 14 58.74 15 110.52 14 530.88 20 47,969.60 21 Kansas City 36 MO 86.81 4 107.29 5 178.97 6 1,049.37 5 102,425.37 5 Las Vegas 26 NV 20.50 43 20.50 45 20.50 48 Long Beach 42 CA 9.80 51 10.58 51 13.34 51 50.28 48 3,979.74 48 Los Angeles 2 CA 34.80 26 46.40 23 87.00 20 580.00 17 58,000.00 16 Louisville 29 KY 42.06 19 49.78 20 76.80 25 484.54 25 46,540.51 24 Memphis 28 TN 10.17 50 13.57 50 25.44 47 169.58 45 16,958.29 45 Mesa 37 AZ 32.04 31 38.14 33 59.49 34 337.21 36 32,215.21 35 Miami 44 FL 27.64 38 41.28 29 89.00 18 700.65 14 69,771.96 13 Milwaukee 31 WI 18.57 45 22.63 44 36.84 42 214.10 42 20,319.19 42 Minneapolis 46 MN 37.36 23 47.38 22 86.10 23 519.25 21 50,158.40 20 Nashville 21 TN 33.76 29 46.28 24 119.94 11 663.38 15 62,723.93 15 New York City 1 NY 39.11 22 52.15 19 97.79 16 651.90 16 65,190.00 14 Oakland 45 CA 23.91 42 26.65 41 28.02 45 156.37 47 13,719.37 47 Oklahoma City 22 OK 28.64 37 35.80 37 60.89 32 368.89 31 35,860.81 31 Omaha 39 NE 54.68 11 60.88 14 82.58 24 346.08 35 31,036.08 37 Philadelphia 6 PA 27.42 39 34.16 38 59.71 33 350.40 34 33,736.22 34 Phoenix 5 AZ 14.84 48 19.79 47 37.10 41 220.00 41 22,000.00 41 Portland 25 OR 79.81 5 102.91 6 183.76 5 1,265.85 3 125,708.85 3 Raleigh 41 NC 39.82 21 49.02 21 86.32 21 487.46 24 46,083.26 25 Sacramento 35 CA 19.85 44 19.85 46 19.85 49 San Antonio 7 TX 26.14 40 33.11 39 58.94 35 357.22 32 34,863.71 32 San Diego 8 CA 43.16 18 52.73 18 86.23 22 493.04 23 47,874.44 22 San Francisco 17 CA 101.03 2 132.97 2 244.76 2 951.21 7 94,605.21 7 San Jose 10 CA 41.64 20 41.64 28 41.64 40 763.00 10 47,700.00 23 Seattle 18 WA 102.06 1 136.08 1 255.15 1 1,701.00 1 170,100.00 1 Tucson 33 AZ 34.77 27 42.03 27 67.44 30 375.90 30 36,303.00 30 Tulsa 47 OK 50.81 13 64.81 12 113.83 13 713.71 13 70,047.04 12 Virginia Beach 43 VA 30.81 34 30.81 40 30.81 43 39.32 49 117.98 49 Washington, D.C. 20 DC 88.79 3 110.07 3 184.55 4 1,088.95 4 106,424.95 4 Wichita 49 KS 29.71 35 36.04 35 58.19 36 327.16 37 31,653.25 36 St. Louis MSD MO 58.33 10 68.67 11 104.86 15 548.86 19 51,731.86 19 Median 34.80 43.49 76.45 442.23 42,718.59 Average 41.11 51.30 88.05 526.06 50,591.78 (a) Las Vegas and Virginia Beach Commercial Rates are based on the type of business and number of fixtures. Each customer will have a different rate. (b) Oklahoma City Rates are based on a meter multiplier. This must be combined with the base rate in order to calculate an exact bill. (c ) Sacramento's commerical sewer rate is charged based on a factor associated with square footage, not consumption as in our analysis. (d) Half of Washington's combined Water and Sewer Metering Fee is included. Table 11 Survey of Typical Monthly Wastewater Bill 50 Largest US Cities Residential Non Residential Small Medium Large Commercial Industrial The Metropolitan St. Louis Sewer District Bond Covenant Compliance D-29 Bond Covenant Compliance Rate Covenants The majority of all District wastewater and stormwater revenues are deposited into and accounted for by separate wastewater and stormwater operating funds. Portions of these revenues are transferred to the General Fund, as required, to pay each utility’s portion of operation and maintenance expense and routine capital expenditures. Section 6.1 of the Master Bond Ordinance requires the District to operate the System on a revenue producing basis and at all times to prescribe, fix, maintain, and collect rates, fees, and other charges for the services, facilities, and commodities furnished by the System fully sufficient at all times to pay annual operation and maintenance expense, provide a reasonable operating reserve, produce net revenues in each fiscal year equal to at least 1.25 times the Debt Service Requirement on all Senior Bonds currently outstanding and 1.15 times the Debt Service Requirement on all Bonds then outstanding and accumulate sufficient funds to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System to keep it in good working condition. In addition, Section 3.020(16) of the Charter requires the District to establish fair and reasonable schedules of charges and Section 7.130 of the Charter requires a balanced budget. Based on the detailed analysis of the System’s revenue and revenue requirements, as presented in this report, the District will continue to meet the rate covenant requirements after issuance of the Series 2022B Bonds. In addition, the existing wastewater rates in effect for fiscal year 2022 and the rates approved for fiscal years 2023 and 2024 are projected to provide sufficient user charge revenues, together with other available revenue sources, to meet all projected revenue requirements related to the proposed CIRP and remain in compliance with the rate covenants throughout the study period. Reasonable Charges Section 6.7 of the Master Bond Ordinance requires that: “None of the facilities or services afforded by the System will be furnished to any user without a reasonable charge being made therefor.” Current and future rates for the System are based on detailed cost of service analyses to provide reasonable assurance that each customer class pays its proportionate share of the costs required to provide utility service. All users of the System are required to pay their proportionate share of operating and maintenance expenses in compliance with the Master Capitalized terms are defined in the Bond Ordinance. The Metropolitan St. Louis Sewer District Bond Covenant Compliance D-30 Bond Ordinance requirement and Federal user charge requirements. No free service is being provided by the District. Adequate Maintenance Section 6.2 of the Bond Ordinance requires the District to operate the System in an efficient and economical manner and maintain the System at all times in good repair and sound operating condition. The System has historically been adequately maintained and found to be in good working order. Although costs are considered reasonable and result in rates comparable to similar sized utilities, the District is continuously looking at ways to enhance efficiency to manage costs and keep utility rates as low as possible. Additional Bonds Tests In order to issue additional revenue bonds on parity with prior Senior Bonds, the District must have sufficient revenues to meet either a preceding year or ensuing year additional bonds coverage test. Section 5.3 of the Master Bond Ordinance requires historical Net Operating Revenues and Investment Earnings (“net revenues”) for a period of 12 consecutive months of the most recent 18 consecutive months prior to the issuance of the proposed Senior Bonds to be at least equal to (i) 1.25 times the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds, and (ii) 1.15 times the Maximum Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds. For the ensuing year additional bonds test, the Master Bond Ordinance requires the forecasted net revenues for each fiscal year in the Forecast Period (the three consecutive fiscal years commencing with the fiscal year in which any proposed Senior Bonds are to be issued) to be at least (i) 1.25 times the Maximum Annual Debt Service Requirement on all Senior Bonds that will be Outstanding immediately after the issuance of the proposed Senior Bonds, and (ii) 1.15 times the Maximum Annual Debt Service Requirement on all Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds. Revenue adjustments are allowed for the preceding year test for any rate increase enacted prior to the delivery date of the proposed Senior Bonds and not fully reflected in the historical Net Operating Revenues actually received during the 12-month period. A similar adjustment is allowed for the ensuing year test if the rates were actually adopted by ordinance prior to issuance of the bonds. Without a future rate adjustment provision for the ensuing year test, the normal inflationary increases in operation and maintenance expenses could outpace the revenues obtained from a relatively stable customer base such that future net revenues and ensuing year debt service coverage may significantly decrease towards the end of the Forecast Period. This may require the District to enact multiple year rate increases prior to issuance of The Metropolitan St. Louis Sewer District Bond Covenant Compliance D-31 the bonds, set rates at a current year debt service coverage level of 1.50 times the Debt Service Requirement or higher to account for the expected coverage deterioration, or only rely on the historic year test to issue additional Senior Bonds. The Master Bond Ordinance also specifies additional bond tests for the issuance of any Subordinate Bonds. These tests are identical to the additional Senior Bond tests. The District has never defaulted on any District-wide or subdistrict revenue bond payment and is expected to be able to issue additional revenue bonds throughout the study period. Table 12 presents the results of the rate covenant and additional bond coverage tests during the study period and projects revenue based on the approved rate increases through 2024. As indicated by Line 4 of Table 12, the indicated annual rate covenant coverage ranges from 2.83 times annual debt service to 3.65 times annual senior lien debt service, exceeding the 1.25 minimum requirement. Likewise, the additional bond coverage levels for Senior Bonds, as shown on Lines 11 and 16 of Table 12, exceed their 1.25 minimum requirements throughout the study period. Coverage indicated for total debt is also above the 1.15 minimum requirement throughout the study period, as shown on Lines 12 and 17 of Table 12. Lines 19 and 20 present the ensuing year additional bonds test as calculated for the Series 2022B Bonds and does not consider the potential impact of future rate increases or bond issues. The District is in compliance with the ensuing year additional bonds test as the senior lien coverage exceed 1.25 times and total debt coverage exceed 1.15 times in each of the next two years. The Metropolitan St. Louis Sewer District Bond Covenant Compliance D-32 a Table 12. Debt Service Coverage under Projected Revenue Levels Fiscal Year Ending June 30 FY 2021 FY 2022 FY 2023 FY 2024 Actual Projected Projected Projected Rate Covenant Coverage 1. Projected Net Revenue (1) 252,042,019$ 290,954,149$ 285,785,564$ 297,915,811$ Projected Debt Service to Bondholders (2) 2. Senior Lien Bonds 81,685,268$ 82,124,136$ 96,708,000$ 105,441,550$ 3. Total Debt (3) 119,301,574$ 122,583,762$ 138,500,693$ 154,035,135$ Debt Service Coverage Levels 4. Senior Lien Bonds (4) 3.09 3.54 2.96 2.83 5. Total Debt (5) 2.11 2.37 2.06 1.93 Additional Parity Test Coverage Projected Maximum Annual Debt Service (6) 6. Senior Lien Bonds 102,095,982$ 108,569,232$ 117,804,732$ 133,653,982$ 7. Total Debt 130,222,365 136,696,865 145,932,865 168,936,125 Preceding Year Test 8. Net Revenue for Prior Fiscal Year 432,500,409$ 252,042,019$ 290,954,149$ 285,785,564$ 9. Net Revenue Adjustment (7) 46,061,294 26,464,412 6,400,991 9,716,709 10. Adjusted Net Revenue 478,561,702$ 278,506,431$ 297,355,140$ 295,502,273$ Preceding Year Debt Service Coverage Levels 11. Senior Lien Bonds (8) 4.69 2.57 2.52 2.21 12. Total Debt (9) 3.67 2.04 2.04 1.75 Ensuing Year Test 13. Net Revenue for Ensuing Fiscal Year 290,954,149$ 285,785,564$ 297,915,811$ 332,294,545$ 14. Net Revenue Adjustment (10) - - - - 15. Adjusted Net Revenue 290,954,149$ 285,785,564$ 297,915,811$ 332,294,545$ Ensuing Year Debt Service Coverage Levels 16. Senior Lien Bonds (11) 2.85 2.63 2.53 2.49 17. Total Debt (12) 2.23 2.09 2.04 1.97 Ensuing Year Additional Bonds Test - Current Issue 18. Net Revenue for Ensuing Year (13) 190,443,611$ 225,564,307$ 257,265,444$ 19. Senior Lien Bonds (13) 1.75 2.08 2.37 20. Total Debt (13) 1.39 1.65 1.88 (1) Net revenue as shown on Line 10 of Table 9. Includes the impact of approved rate increases each year. (2) Projected actual payments to of principal and interest from the sinking fund to bondholders. (3) Includes senior revenue bonds and subordinate debt obligations. (4) Line 1 / Line 2. The Bond Ordinance requires net revenue to equal or exceed 1.25 times actual senior lien debt service. (5) Line 1 / Line 3. The Bond Ordinance requires net revenue to equal or exceed 1.15 times actual total debt service. (6) Maximum future debt service for all series of revenue bonds issued in previous years or during the current fiscal year. (7) Adjustment for revenues increases to be fully operative July 1 of the current fiscal year as allowed by the Bond Ordinance. (8) Line 10 / Line 6. The Bond Ordinance requires adjusted net revenue for the preceding fiscal year to equal or exceed 1.25 times the maximum annual debt service on all then outstanding senior lien obligations. (9) Line 10 / Line 7. The Bond Ordinance requires adjusted net revenue for the preceding fiscal year to equal or exceed 1.15 times the maximum annual debt service on all then outstanding debt obligations. (10) Adjustment for revenues increases not permitted for ensuing year coverage test unless already adopted by the Board. (11) Line 15 / Line 6. The Bond Ordinance requires net revenue for the ensuing three fiscal years to equal or exceed 1.25 times the maximum annual debt service on all then outstanding senior lien revenue bonds. (12) Line 15 / Line 7. The Bond Ordinance requires net revenue for the ensuing three fiscal years to equal or exceed 1.15 times the maximum annual debt service on all then outstanding bonds. (13) The test for the currently proposed issue considers the next two fiscal years, with adjustments for future rate increases adopted by the Board. The Metropolitan St. Louis Sewer District Principal Assumptions D-33 Principal Assumptions In conducting our analyses and in forming an opinion of future operations summarized in this report, Raftelis has made certain assumptions with respect to conditions, events, and circumstances that may occur in the future. The methodology utilized by Raftelis in performing the analysis follows generally accepted practices for such projections. Such assumptions and methodologies are summarized in this report and are reasonable and appropriate for the purpose for which they are used. While we believe the assumptions are reasonable and the projection methodology valid, actual results may differ materially from those projected, as influenced by the conditions, events, and circumstances that actually occur. The principal assumptions used in the forecast of future operations are as follows: 1. In preparation of this report, Raftelis has relied on certain historical, financial, and statistical data supplied by District staff. While such data is considered reliable, Raftelis has not independently verified the detailed accuracy of such data. 2. The District’s estimates of content, scheduling, and cost of the capital improvement program will continue as projected and will be sufficient to comply with the initial terms of the Consent Decree. 3. Billed wastewater volume will continue to decrease slightly over the forecast period. 4. Debt service for the revenue bonds proposed to be issued, including the Series 2022B Bonds, will be approximately as estimated as of the date of this report 5. The District will maintain a minimum operating reserve balance at all times that is at least equal to 60 days of operating expenditures. 6. There will be no material changes in federal and state laws or regulations that would adversely impact the District’s ability to secure tax-exempt financing for its System, place more stringent limitations on wastewater effluent discharges, materially increase the cost of constructing or operating the wastewater system, or otherwise adversely impact operations of the System. 7. The general economy that impacts System costs and users’ capabilities to pay wastewater service charges will remain relatively stable at current conditions. [ THIS PAGE INTENTIONALLY LEFT BLANK ] APPENDIX E Form of Opinion of Co-Bond Counsel [ THIS PAGE INTENTIONALLY LEFT BLANK ] E-1 FORM OF OPINION OF CO-BOND COUNSEL (SERIES 2022B BONDS) Gilmore & Bell, P.C., St. Louis, Missouri, and White Coleman & Associates, LLC, St. Louis, Missouri, Co-Bond Counsel, propose to issue their approving opinions upon the issuance of the Series 2022B Bonds in substantially the following form: The Metropolitan St. Louis Sewer District St. Louis, Missouri BofA Securities, Inc. St. Louis, Missouri Re: $109,070,000 The Metropolitan St. Louis Sewer District, Wastewater System Improvement and Refunding Revenue Bonds, Series 2022B Ladies and Gentlemen: We have acted as co-bond counsel in connection with the issuance by The Metropolitan St. Louis Sewer District (the “District”), of the above-captioned bonds (the “Bonds”). In this capacity, we have examined the District’s Charter, the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. The Bonds are issued pursuant to Master Bond Ordinance No. 11713 adopted by the Board of Trustees of the District on April 22, 2004, as supplemented by Ordinance No. 15906 adopted by the Board of Trustees of the District on May 12, 2022 (collectively, the “Bond Ordinance”). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Bond Ordinance. Regarding questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based on and subject to the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the District and are valid and legally binding limited obligations of the District, payable solely from the Pledged Revenues of the District’s sanitary sewer system, after providing for the costs of operation and maintenance thereof. The Bonds do not constitute general obligations of the District nor do they constitute an indebtedness of the District within the meaning of any constitutional, statutory or charter provision, limitation or restriction, and the taxing power of the District is not pledged to the payment of the Bonds. 2. The Bond Ordinance has been duly adopted by the Board of Trustees of the District and constitutes a valid and legally binding obligation of the District enforceable against the District. The Bond Ordinance creates a valid lien on the revenues and other funds pledged by the Bond Ordinance for the security of the Bonds on a parity with any Senior Bonds issued or to be issued as provided under the Bond Ordinance. E-2 3. The interest on the Bonds is excludable from gross income for federal income tax purposes and is exempt from income taxation by the State of Missouri. The interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the District complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The District has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause the interest on the Bonds to be included in gross income for federal and State of Missouri income tax purposes retroactive to the date of issuance of the Bonds. The Bonds have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code. We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding the perfection or priority of the lien on revenues or other funds pledged under the Bond Ordinance or tax consequences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the Bonds and the enforceability of the Bonds and the Bond Ordinance may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity, and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. 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