Loading...
HomeMy Public PortalAboutLetter forwarding Rate Recommendation Report 09-05-2023THE RATE COMMISSION OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT September 5, 2023 Board of Trustees of the Metropolitan St. Louis Sewer District c/o Mr. Brian L. Hoelscher, Executive Director 2350 Market Street St. Louis, Missouri 63103 Dear Trustees: I have been authorized and directed by the Rate Commission of the Metropolitan St. Louis Sewer District to deliver to you the Rate Recommendation Report regarding the Wastewater and Stonnwater Rate Change Proposal submitted to the Rate Commission on March 24, 2023. Accompanying the Report are (a) four minority reports and (b) the Resolution adopted by the Rate Commission on August 25, 2023. The Proceedings of the Rate Commission at which the Rate Recommendation Report was considered were held in accordance with all requirements of law and procedural rules of the Rate Commission. The transcript of the Proceedings may be found on the website at https://insdprojectclear.org/about/rate-commission/2023-rate-proposal. The Rate Recommen- dation Report was approved at a meeting on August 25, 2023, at which a quorum was present and acted throughout. I particularly call your attention to the Statement of Rate Commission on the Potential Rate Impact on Ratepayers found on pages 119-120 of our Report; and the Statement of Rate Commission on the Ston-nwater Municipal Grant Program found on pages 136-138 of our Report. Potential Rate Impact on Ratepayers. The Rate Commission is concerned with the potential rate impact on ratepayers already facing multiple utility rate increases, and believes that the District should consider expansion of existing assistance programs. Further, the Rate Commission recommends that the District take a leading role in the establishment of a task force on utility ratepayer financial impact issues, including other entities and impacted parties within the District's service areas, to consider issues relating to utility ratepayer financial impact. Such issues may include expansion of metering at a reduced cost to assist individuals in older homes — particularly in St. Louis City, where the number of rooms and bathrooms determines rates, rather Board of Trustees of the Metropolitan St. Louis Sewer District September 5, 2023 Page 2 than usage — to allow individuals to reduce their utility costs; or pursuing the access of funds from the City of St. Louis and St. Louis County, Missouri from the NFL settlement, as set forth in the Resolution approved by the Rate Commission, attached to the Rate Commission Report as Exhibit B. Stormwater Municipal Grant Program. The Rate Commission supports the District's decision to allocate thirty percent of the generated stormwater funds to a municipal grant program. However, members of the Rate Commission recognize that grouping municipalities solely by population to determine grant eligibility could pose problems, including that doing so: (i) does not take into account the actual stormwater needs of each community; (ii) does not consider the cost/benefit of each project; (iii) could lead to arbitrary classifications and divisions of communities'; (iv) that the smallest municipalities by population may lack the appropriate staff and infrastructure to adequately assess and plan for their stonnwater needs; and (v) the size of grants ($30,000) for the smallest municipalities by populations could be inadequate to address stormwater problems which may extend beyond the boundaries of a particular municipality. The Rate Commission recommends that the District modify the proposed grant program to account for factors other than population, such as: (i) the amount of impervious area in a community, (ii) the extent to which a community has done long-term planning for stormwater needs, (iii) whether the municipality has engaged in an appropriate cost -benefit analysis; (iv) whether a community has municipal or third -party funding available; and/or (v) the degree to which a municipality has considered collaborative or intergovernmental cooperation to address stonnwater needs. The Rate Commission suggests that the District also consider equalizing funding availability over a period of years, such that communities may receive different amounts each year (depending on their needs), but would receive equal funding over a longer period of time. In For instance, certain communities, such as Dellwood and Ellisville would miss eligibility for additional funds through a higher classification by only a few residents. See Ex. MSD73D, p. 1. Board of Trustees of the Metropolitan St. Louis Sewer District September 5, 2023 Page 3 sum, the Rate Commission recommends that the District seek input from the Municipal League of Metro St. Louis and other interested parties and develop a municipal grant program that considers these factors in addition to population. We appreciate all the time and effort the District staff contributed to the Rate Commission Proceedings. Very truly yours Leonard Toenjes Enclosures cc: (w/encs.) Office of the Secretary of the Rate Commission