HomeMy Public PortalAboutExhibit MSD 100- MSD's Closing StatementExhibit MSD 100
RATE COMMISSION
MSB’S CLOSING STATEMENT
August 7,2023
Good Morning Commission
As you are all aware, my name is Susan Myers and I am MSB’s General Counsel. On
behalf of the District, I would like to thank each and every one of you for participating in
this rate setting process.
As you have heard numerous times, the proposal before you is both a Wastewater and
Stormwater Rate Change Proposal. And the task before you is to determine if this Rate
Change Proposal, submitted on March 24, 2023, complies with the five criteria outlined
in the MSD Charter. The District concludes that it does and this fact is supported by the
record, including the testimony of District witnesses, Rate Commission witnesses and
exhibits.
Without reiterating all 5 criteria I would like to emphasize that the Rate Change Proposal,
as submitted by the District, considered the financial impact on all classes of ratepayers
in determining a fair and reasonable burden. Again, the information in the record will
support this fact and is there for your reference.
The Wastewater Rate Change Proposal proposes to increase rates an average of 7.25%
over the 4-year Rate Proposal period. This rate structure follows the same parameters as
in the previous Rate Proposals and will require a vote of the people to fund a portion of
the CIRP with bonds. The District plans to go to the voters requesting authority to bond
in April 2024. This is in addition to taking advantage of additional loan and grant
opportunities that may become available. If the voters do not agree to bonding authority,
the pay-go rate increase schedule included in the Wastewater Rate Change Proposal will
be implemented.
Exhibit MSD 100
The Stormwater Rate Change Proposal recommends the creation of a new Stormwater
Capital Program to be used to address flooding and erosion control issues. If this funding
is secured, then MSD would have funding for a complete stormwater program, including
regulatory services, O&M services and finally to address flooding & erosion issues.
The stormwater rate, the allocation and the method being proposed by the District
considered the financial impact on all classes of ratepayers in determining a fair and
reasonable burden. With that said, MSD staff continues to be very open to any proposed
changes in the municipal grant allocation chart as long as the following three objectives
are met: 1) the distribution be driven by population, 2) a minimum annual grant of
$30,000 be made available to all municipalities regardless of population, and 3) annual
grant amount not be determined by the ever-changing exact population, but
municipalities be grouped with other municipalities of similar populations to
accommodate the management of the program. Exhibit MSD 91 was provided
previously as an example for the Rate Commission to work with if desired.
In conclusion, it is MSD’s opinion that the record before you supports that the Rate
Change Proposal meets all 5 criteria outlined in the Charter and specifically considered
the financial impact on all classes of ratepayers in determining a fair and reasonable
burden.
Again, I would like to thank you for your time and efforts put into this rate setting
process. This concludes my closing remarks. A copy will be filed as Exhibit MSD 100.
Thank you