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ANNUALCOMPREHENSIVEFINANCIAL REPORTFISCAL YEARS ENDED JUNE 30, 2023 AND 2022
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THE METROPOLITAN ST. LOUIS SEWER DISTRICTST. LOUIS, MISSOURI
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
ST. LOUIS, MISSOURI
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
Report Prepared And Submitted By The
Department of Finance
Marion M. Gee
Director Of Finance
Contents
Page
Part I – Introductory Section:
Letter of Transmittal .................................................................................................................... i
Organization Chart .................................................................................................................... xii
Certificate Of Achievement For Excellence In Financial Reporting ...................................... xiii
Part II – Financial Section:
Independent Auditors’ Report ..................................................................................................... 1
Management’s Discussion And Analysis .................................................................................... 4
Basic Financial Statements
Statements Of Net Position ................................................................................................. 18
Statements Of Revenues, Expenses, And Changes In Net Position ................................. 20
Statements Of Cash Flows .................................................................................................. 21
Statements Of Fiduciary Net Position ................................................................................ 23
Statements Of Changes in Fiduciary Net Position Employees’ Pension Plan ................. 24
Notes To Financial Statements ........................................................................................... 25
Required Supplementary Information
Schedule Of Changes in Net Pension Liability and Related Ratios ............................... 121
Schedule Of Employer Contributions – Employees’ Pension Plan ................................. 122
Schedule Of Changes in Total OPEB Liability ................................................................ 123
Part III – Statistical Section:
Net Position By Component ..................................................................................................... 124
Changes In Net Position .......................................................................................................... 125
Operating Revenues By Source ............................................................................................... 126
Operating Expenses ................................................................................................................. 127
Non-Operating Revenues And Expenses ................................................................................ 128
User Charge Rates ................................................................................................................... 129
User Charge Revenues ............................................................................................................. 130
Sewer User Charges (Composite-Annual) .............................................................................. 131
Number Of Customers By Type .............................................................................................. 132
Ten Largest Customers ............................................................................................................ 133
Ratios of Outstanding Debt By Type....................................................................................... 134
Computation Of Overlapping Debt ......................................................................................... 135
Pledged Revenue Coverage ...................................................................................................... 136
Demographic and Economic Statistics .................................................................................... 137
Principal Employers (St. Louis Metropolitan Area) ............................................................... 138
Employment Level .................................................................................................................... 139
Average Flow ............................................................................................................................ 140
Operating And Capital Indicators ........................................................................................... 141
Introductory Section
Vision Statement
Quality Service Always
Mission Statement
To protect the public’s health, safety, and water
environment by responsibly providing wastewater
and stormwater management
Values
Integrity
Teamwork
Excellence and Innovation
The District Employees
Customer Satisfaction
Mission, Vision, Value statements are important elements of a
strategic business plan. The Mission statement keeps the
District focused on its essential activity, the Vision statement
points to its ideal purpose, and the Value statement conveys the
principles that must shape our actions.
i
December 4, 2023
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 the fiscal year (“FY”) ended June 30, 2023, is
submitted herewith. The District’s Finance Department prepared this report. The
District is responsible for the accuracy of the data and the completeness and fairness of
the presentation of the financial statements and other information presented herein. We
believe the presentation is accurate in all material respects and includes all disclosures
necessary to enable the reader to gain a reasonable understanding of the District’s
financial activities. In the ACFR, the District’s financial activities are measured on a
single enterprise fund basis where all funds of the District and its sub-districts are
consolidated.
The District’s ACFR includes an Introductory Section, a Financial Section, and a
Statistical Section. The Introductory Section includes this transmittal letter, an
organization chart as of June 30, 2023, which lists the District’s Board of Trustees, Rate
Commission Chair, members of the Civil Service Commission, and management staff and
the Government Finance Officers Association’s Certificate of Achievement For Excellence
In Financial Reporting presented to the District for its Annual Comprehensive Financial
Report for the fiscal year ended June 30, 2022. The Financial Section includes the
independent auditors’ report, management’s discussion and analysis, the District’s basic
financial statements and required supplementary information. The Statistical Section
includes financial, economic, and demographic information, generally presented on a
multi-year basis.
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 met the established
criteria for inclusion in the reporting entity. Separate from the District’s enterprise
financial statements, the District’s fiduciary component unit’s financial statements for
The Metropolitan St. Louis Sewer District Employees’ Pension Plan are also included in
the ACFR.
Metropolitan St. Louis
Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
www.msdprojectclear.org
The Board of Trustees
The Metropolitan St. Louis Sewer District
ii
Organization
MSD 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
MSD’s creation, the City of St. Louis, various municipalities, 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, 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. The District purchased the Fee Trunk Sewer
Company and the Missouri Bottoms Sewer Company in 1978. MSD has since acquired
other investor-owned or municipally operated systems.
The District’s service area now encompasses 520 square miles including all 66 square
miles of the City of St. Louis and 454 square miles of St. Louis County. The current
population served by the District is approximately 1.3 million representing
approximately 429,600 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 MSD (“Plan”), approved by voters in 1954 and amended in 2000, 2012 and
2021, established the District. The Plan describes the District as “a body corporate, 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 St. Louis.
The Plan established the governing body of the District as a six-member Board of
Trustees (“Board”) with three members appointed by the Mayor of St. Louis and three
members appointed by the St. Louis County Executive. Each Trustee shall be appointed
for a term of four years. No Trustee shall serve more than two full consecutive terms plus
any portion of an unexpired term; provided, however, that each Trustee shall serve until
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 same political party.
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The Metropolitan St. Louis Sewer District
iii
Unlike a corporation’s board of directors that is responsible solely to the stockholders who
choose to invest in the corporation, MSD’s Board members are trustees of public property
and public funds. They are responsible to all citizens within the District.
According to the Plan, 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 officials. 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 Plan prescribes other duties of the Board and grants numerous broad powers, subject
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 annual 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 by a
Civil Service Commission;
Provides how the original boundaries of the District may be extended to
include any area in St. Louis County; and
Requires MSD to approve all plans and designs for proposed construction,
alteration, or reconstruction of sewer or drainage facilities within the
District’s boundaries.
The District is also governed by the Missouri State Constitution and various federal and
state laws that, among other requirements, mandate the following:
MSD must hold permits for all sanitary discharges. These permits require a
minimum of secondary treatment;
MSD must provide wastewater treatment in an area-wide manner to qualify
for federal and state grants;
MSD must operate, maintain, and replace facilities to provide proper
wastewater treatment or be subject to penalties and fines; and
MSD must set user charge rates in compliance with the Federal Clean Water
Act. These rates must be submitted to the Missouri Department of Natural
Resources to receive future construction grants and to avoid the possibility
of refunding past grants.
During fiscal 2023 the primary source of funding for the operation and maintenance of
MSD’s wastewater system was a user charge averaging $724.32 per year or $60.36 per
month for a single-family residence. The District’s charges for residential wastewater
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The Metropolitan St. Louis Sewer District
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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 their non-metered properties. Multi-family residential and non-residential rates are
proportionate to the single-family charge and are based on water consumption and the
strength of the discharge. During fiscal year 2023, the District’s revenue streams,
particularly volume-based wastewater charges related to commercial customers,
surpassed fiscal year 2021 which was impacted by COVID 19. Fiscal year 2023 volume-
based billing units measured in ccf’s (one hundred cubic feet of water) were approximately
4.9% more than the ccf’s billed at the end of the District’s fiscal year 2021. In fiscal year
2023, volume-based billing units were 3.8% higher than fiscal year 2022 levels.
During fiscal 2023 the District’s stormwater system was funded through property taxes
of 1.7¢ per one hundred dollars assessed valuation for stormwater regulatory activities
and 9.0¢ per one hundred dollars assessed valuation for operations and maintenance of
the District’s stormwater utility. The District also performs limited capital improvements
with the revenues generated by the 9.0¢ 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 flat fee billing of 24¢ per
month for residential and commercial properties and 18¢ per month per unit for multi-
unit properties. On April 5, 2016, over 62% of voters in MSD’s service area approved
Proposition S which placed all MSD customers 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 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, itself, 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, revenue bonds, or special
assessment bonds.
Major Initiatives Affecting the Financial Resources of the District
There were once hundreds of points in MSD’s service area where a combination of
stormwater and wastewater discharged into local waterways from the wastewater sewer
system during moderate to heavy rainstorms. These sewer overflow points act as relief
valves when too much stormwater enters the wastewater system, and without them, our
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The Metropolitan St. Louis Sewer District
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community could experience thousands of basement backups and/or extensive street
flooding. Even with these overflow points, basement backups can easily number in the
dozens or hundreds during particularly heavy rains. Depending on where sewer overflows
are located within MSD’s system, they are classified as combined sewer overflows or
constructed separate sewer overflows. Many of these overflows are a legacy of the way
our wastewater systems were first built. Though most overflows predate the District’s
creation in 1954, they are still MSD’s responsibility and efforts to address the problem
must continue.
Sewer overflows have been a significant focus of MSD’s work for many years. From 1992
to 2012, MSD spent approximately $2.7 billion to eliminate over 380 overflows. Today,
our work to address sewer overflows and improve water quality continues through a
Consent Decree that stems from a lawsuit filed against MSD by the State of Missouri and
the United States Environmental Protection Agency (“EPA”) in June 2007. The State of
Missouri and the EPA were later joined in the lawsuit by the Missouri Coalition for the
Environment.
After lengthy mediation, the EPA announced a settlement agreement in August 2011. On
April 27, 2012, the United States District Court for The Eastern District of Missouri
entered a Consent Decree, thus concluding the litigation. The Consent Decree calls for
more than $7 billion in upgrades to the existing wastewater sewer system (in 2023
dollars). Also known as MSD Project Clear, this work was originally scheduled to take
place over 23 years and addresses our community’s wastewater collection and treatment
capabilities on a system-wide basis. However, on June 22, 2018, a United States District
judge approved an amendment to the Consent Decree that extends the schedule from 23
years to 28 years. The motivation behind the amendment are regulatory changes that
compel MSD to accelerate certain projects that do not fall within the scope of the Consent
Decree. The time extension will allow MSD to address new regulatory requirements,
while minimizing the financial burden on customers. The work is a mammoth
undertaking that will benefit St. Louisans – and our environment – for generations to
come.
MSD is just over 10 years into the project, a massive effort to upgrade the region’s aging
wastewater system by separating areas with combined wastewater and stormwater pipes
that lead to discharges of sewage into the Mississippi River and its tributaries.
In the 11 years since the project commenced, MSD has accomplished the following:
Removed 85% (123 of 149) of constructed sanitary sewer overflows, where
excess wastewater flows are discharged when the system is over capacity.
Spent $50.5 million out of a pledged $100 million on a Green Infrastructure
Program, which has resulted in the removal of 53 million gallons of
combined sewer overflow.
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The Metropolitan St. Louis Sewer District
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Continued construction of Jefferson Barracks and Lower Meramec tunnels;
continued planning of River Des Peres Tributaries CSO tunnel and final
engineering of the Lower and Middle Des Peres storage tunnel.
Completed 247 system improvements, including the Maline Creek Tunnel,
Deer Creek Tunnel, Gravois Creek Storage Tanks, and DC-02/DC-03
sanitary relief project.
Started construction on the Lower Meramec Wastewater Treatment Plant
expansion phase I.
Continued planning of nutrient removal.
Negotiated amendment to 208 (Section 208 of the Clean Water Act) plan to
save customers approximately $200 million.
In fiscal year 2022, MSD proposed a modification to the Upper River Des Peres Storage
Tunnel and River Des Peres Tributaries Storage Tunnel to replace them with a single
storage tunnel (Upper River Des Peres and River Des Peres Tributaries Storage Tunnel)
to lessen traffic and reduce construction impacts in the Richmond Heights area. This
community is already disproportionately affected by heavy traffic and pollution exposure.
The revision also reduced the need for purchasing residential properties and easement
acquisition, as well as allowed for easier access in and out of construction areas. The new
single tunnel is anticipated to be fully operational by December 31, 2037. The
modification to the Upper River Des Peres and River Des Peres Tributaries Storage
Tunnel represents good engineering practice. The single tunnel limits the impact on
nearby communities, further improves the environmental benefit, and allows MSD to
maintain an acceptable financial burden for its ratepayers. The U.S. Environmental
Protection Agency must approve the proposed modification.
The Sewer District will continue their management activities.
Operations
The Executive Director and his staff administer the operation and maintenance of the
District’s collection and treatment systems. The District’s wastewater, stormwater, 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 years 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 stormwater
drainage range from cleaning and maintaining street inlets to operating and maintaining
the floodwall pump stations along the Mississippi River.
MSD currently operates seven wastewater treatment facilities. These facilities treated
an average flow of 291.2 million gallons per day (“MGD”) in fiscal 2023 compared to 289.5
MGD in fiscal 2022. Fiscal year 2023 flows were consistent with fiscal year 2022 levels.
The design capacity and average flow, by watershed, in MGD was as follows in fiscal
The Board of Trustees
The Metropolitan St. Louis Sewer District
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2023:
MAJOR
WATERSHED
LEVEL OF
TREATMENT
NUMBER
OF
FACILITIES
DESIGN
CAPACITY
(MGD)
AVERAGE FLOW
FISCAL 2023
(MGD)
Mississippi River Secondary Two 472.00 218.50
Missouri River Secondary Two 78.00 45.30
Meramec River Secondary Three 42.75 27.40
Total Seven 592.75 291.20
In addition to construction initiated by the District to protect the public’s health and
property from raw sewage and flooding, the District also provides various engineering-
related design review and inspection services for the construction of wastewater and
stormwater sewers by individuals, businesses, and municipalities in the community.
Economic Conditions In The St. Louis Metropolitan Area
As a rule, the District’s major revenue sources do not fluctuate with the local and national
economy as much as local governments that depend on sales or income taxes for their
major sources of revenue. The combined unemployment rate for the City of St. Louis and
St. Louis County was 3.4 percent in June 2023 and lower than the national
unemployment rate of 3.6 percent for the same time period. The June 2023
unemployment rate of 3.4 percent is higher than the June 2022 rate of 2.5 percent.
MSD has its own internal barometers for measuring economic development within the
District. These are listed below for fiscal 2023 and 2022:
2023 2022
Sewer Plan Reviews:
Number of Plans Approved
439
446
Number of Miles of Sewers 39 52
Sewer Construction Permits:
Number of Permits Issued
2,506
2,125
Number of Miles of Sewers 19 18
Customer Connections:
Number of Connection Permits Issued 2,506 1,919
Connection Fee Revenue (in millions) $1.3 $1.3
Value of Sewers Dedicated to
MSD by Developers (in millions) $8.5 $13.3
Over the years, the St. Louis economy has undergone a transformation from reliance on
traditional manufacturing industries to those industries based on advanced technology
The Board of Trustees
The Metropolitan St. Louis Sewer District
viii
and services. The St. Louis area is a center for health care, biotechnology, banking,
finance, transportation, tourism, and education and has a strong and diverse
manufacturing economy. The area has an abundance of energy, water, and sewerage
facilities and can sustain future economic growth.
Financial Information
Proprietary Operations. The current financial condition of MSD remains stable. The
District realized a net operating income of $152.6 million in fiscal 2023 compared to a
restated net operating income of $160.4 million in the prior year. Fiscal year 2022
operating expenses were restated due to the implementation of GASB 96 which resulted
in a decrease in operating expenses of $0.8 million. Operating revenues increased by
$13.5 million from fiscal 2022 due to growth in sewer service charges but this increase
was offset by an increase in operating expense of $21.3 million. The increase in operating
expenses was driven by a $14.4 million increase in general and administrative expenses
which consisted of a $4.2 decrease of the FY 2022 reported amount due to the
aforementioned restatement and a $13.1 million increase in Governmental Accounting
Standards Board (GASB) Statement No. 68 related pension. Operating expenses were
also impacted by an increase in water backup claims of $5.7 million. A more in-depth
analysis of the District’s financial position and the magnitude of the capital improvement
and replacement program (“CIRP”) is provided in the Management’s Discussion and
Analysis section that appears later in this report.
Budgetary Controls. The District’s Plan requires MSD to submit a proposed budget to the
Board by March 15th each year. After Board review, a final budget is approved in June.
The District’s Plan also requires MSD to maintain budgetary controls and 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 appropriated budget includes activities of the District’s operating and debt service
funds. The Board adopts ordinances to appropriate funds for capital improvement
expenditures at the time of the contract award and acceptance 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 carry 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
generally accepted accounting principles for Enterprise Funds. Adjustments are made to
the accounting records, where necessary, to reflect the full accrual method of accounting.
Under the full accrual method of accounting, revenues are recognized when earned and
expenses are recorded as liabilities when incurred. Encumbrances and unearned capital
The Board of Trustees
The Metropolitan St. Louis Sewer District
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and operating grants are eliminated under the full accrual method of accounting. These
amounts are disclosed as commitments in the notes to financial statements.
Cash Management. In compliance with its Plan, the District invests temporarily idle
funds in cash, cash equivalents and investments such as collateralized certificates of
deposit, 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 insurance coverage for various risks
while self-insuring for other risks and liabilities at levels customary for similar
enterprises. The District maintains a replacement cost property and casualty primary
insurance policy with a limit of $1.0 billion per occurrence on certain facilities and
equipment. The District maintains three excess liability insurance policies relating to
facilities and equipment that each have $5.0 million per occurrence/aggregate limits. 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 known to provide water backup claim
coverage to its customers. To minimize exposure to loss, the District inspects its facilities
regularly and performs preventative maintenance on them.
The District is self-insured for workers’ compensation and funds those costs through
annual appropriations from the District’s general insurance fund. The District maintains
reinsurance for workers’ compensation liabilities in excess of specified limits up to the
statutory limit. Risk control activities include using a third-party claims administrator,
maintaining a computerized claim tracking system, and annually reevaluating workers’
compensation cost. The District also has programs designed to promote safety in the
workplace and employee wellness.
The District provides group medical coverage for its employees and offers 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 $175,000
per year and for total annual claims greater than 125 percent of the annual claims
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 vision care program for employees. Effective July 1, 2013, spouses were eligible to use
the benefits; effective July 1, 2016, dependent children up to age 26 were eligible to use
the benefits; however, the amount could not exceed the maximum amount of $500. The
District reevaluates insurance coverage and providers annually by reevaluating medical
insurance claims and health benefit costs.
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The Metropolitan St. Louis Sewer District
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For most construction projects, insurance is obtained by the individual contractor and
included in the contract price.
Internal Controls. District Management is responsible for designing, establishing, and
maintaining an internal control system that protects District assets from loss, theft, or
misuse and ensures that adequate accounting data is compiled to prepare financial
statements in conformity with United States generally accepted accounting principles.
Internal control systems are designed to provide reasonable, but not absolute, assurance
that these objectives are met. The concept of reasonable assurance recognizes that the
cost of a control should not exceed the benefits likely to be derived and that the evaluation
of costs and benefits requires estimates and judgments by management. The District’s
internal control system is subject to periodic evaluation by Management, the Board and
the District’s independent accountants.
Other Information
Audit Requirements. The District’s Plan requires an annual audit by independent
certified public accountants. The District’s ACFR includes a report on the District’s
financial statements by the accounting firm of CliftonLarsonAllen LLP.
Besides meeting the requirements set forth in the Plan, the annual audit is also designed
to meet the requirements of the 2013 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) that was
issued by the Office of Management and Budget (“OMB”). A Single Audit Report will be
issued for the year ended June 30, 2023.
The financial statements of The Metropolitan St. Louis Sewer District Employees’
Pension Plan, The Metropolitan St. Louis Sewer District Deferred Compensation Plan
and Trust and The Metropolitan St. Louis Sewer District Defined Contribution Plan are
also audited annually. These audit reports were issued for the periods ending December
31, 2022, and 2021 and are available to interested parties upon request.
Awards. The Government Finance Officers Association of the United States and Canada
(“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to
MSD for its ACFR for the fiscal year ended June 30, 2022. The Certificate of Achievement
is a prestigious national award that recognizes conformance with the highest standards
for preparation of state and local government financial reports.
To be awarded the Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized ACFR, the contents 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 year only.
The District has received a Certificate of Achievement for the last thirty-five consecutive
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The Metropolitan St. Louis Sewer District
xi
years. We believe the current ACFR continues to conform to the GFOA’s high standards,
as reflected in the Certificate of Achievement program requirements, and are submitting
it again this year for consideration. The District also received the GFOA’s Distinguished
Budget Presentation award for its fiscal 2023 annual budget. The District has received
this award for thirty-six consecutive years. We believe the fiscal year 2024 budget
presentation continues to meet the GFOA’s high standards and have submitted it for
consideration. The District also received the GFOA’s Award for Outstanding
Achievement in Popular Annual Financial Reporting (“PAFR”) for its fiscal year 2022
PAFR. We have received this award for every year since the publication of our first PAFR
for fiscal year 2012 and intend to submit the fiscal year 2023 PAFR for consideration.
Marion M. Gee
Director of Finance
Page xii
ORGANIZATION
(As of June 30, 2023)
BOARD OF TRUSTEES
Amy Fehr, Chair; Ret. Col. Richard Wilson, Vice Chair; Michael Evans
Greg Nicozisin; Brian K. Watson; Brian Wahby
OFFICE OF INTERNAL AUDITOR
RATE COMMISSION
Leonard P. Toenjes, Chair
OFFICE OF SECRETARY
TREASURER
Tim R. Snoke
Secretary/Treasurer
CIVIL SERVICE COMMISSION
Rev. Michael F. Jones
Marylynn Sims
Michael Harvey
EXECUTIVE DIRECTOR
Brian L. Hoelscher/CEO
FINANCE
Marion M. Gee
Director
OFFICE OF GENERAL COUNSEL
Susan M. Myers
General Counsel
OPERATIONS
Bret A. Berthold
Director
ENGINEERING
Rich Unverferth
Director
OFFICE OF HUMAN RESOURCES
Tracey Coleman
Director
INFORMATION TECHNOLOGY
Virginia Kienstra
Director
Page xiii
Government Finance Officers Association
Certificate Of
Achievement
For Excellence
In Financial
Reporting
Presented to
Metropolitan St. Louis Sewer District
Missouri
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
Financial Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
SERVICE AREAS
1
INDEPENDENT AUDITORS’ REPORT
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the business-type activities and the fiduciary
activities of The Metropolitan St. Louis Sewer District (the District), as of and for the years ended
June 30, 2023 and 2022 (except for the fiduciary activities, which is as of and for the years ended
December 31, 2022 and 2021), and the related notes to the financial statements, which collectively
comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the business-type activities and the fiduciary activities of The Metropolitan
St. Louis Sewer District, as of June 30, 2023 and 2022 (except for the fiduciary activities, which is as of
and for the years ended December 31, 2022 and 2021), and the respective changes in financial position,
and, where applicable, cash flows thereof for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the District and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As disclosed in Note 1, the District implemented the provisions of Governmental Accounting Standards
Board Statement No. 96 – Subscription-Based Information Technology Arrangements. The Standard
establishes that a subscription-based information technology arrangement results in a right-to-use
subscription asset and a corresponding subscription liability. Our opinions are not modified with respect
to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Board of Trustees
The Metropolitan St. Louis Sewer District
2
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Board of Trustees
The Metropolitan St. Louis Sewer District
3
Required Supplementary 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 contributions to employees’ pension plan and schedule of changes
in total OPEB liability be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the 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, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with GAAS, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency 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 not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 4, 2023, on our consideration of The Metropolitan St. Louis Sewer District’s internal control
over financial reporting and on our tests of its compliance 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, and not to provide an opinion on the effectiveness of The Metropolitan St. Louis Sewer District’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Metropolitan St. Louis
Sewer District’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
St. Louis, Missouri
December 4, 2023
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Years Ended June 30, 2023 and 2022
The annual report of The Metropolitan St. Louis Sewer District (“MSD” or 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 this 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 management’s knowledge of the transactions, events, and conditions
reflected in the accompanying financial statements and the fiscal policies that govern the
District’s operations.
2023 Financial Highlights
The District increased net capital assets by $230.3 million as a result of increases
in construction in progress ($203.9 million), depreciable capital assets net of
depreciation ($25.0 million) and land ($1.4 million).
The District placed $131.7 million of capital assets into service during fiscal year
2023. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $105.0 million
Subscription-based IT agreements $15.6 million
General plant and equipment $7.0 million
Treatment and disposal plant and equipment $2.4 million
Land $1.6 million
Lease Assets $0.1 million
The net increase to accumulated depreciation and amortization was $99.2 million which
takes into consideration the recording of depreciation and amortization relating to new
assets in addition to depreciation and amortization on existing assets offset by the
accumulated depreciation and amortization relieved for assets retired during the year.
During the 2023 fiscal year the District implemented one Governmental Accounting
Standards Board (“GASB”) Statement, GASB 96. See Note 1, Summary of Significant
Accounting Policies, in the accompanying notes to the financial statements for more
detailed information.
2022 Financial Highlights
The District increased net capital assets by $187.1 million as a result of increases
in land ($2.6 million) and depreciable capital assets net of depreciation ($199.6
million) offset by a decrease in construction in progress ($15.1 million).
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 5
The District placed $305.3 million of capital assets into service during fiscal year
2022. The continued high level of capitalization reflects the District’s work to meet
long-term plans. Capitalized assets included:
Collection and pumping plant $238.8 million
Treatment and disposal plant and equipment $29.2 million
Subscription-based IT agreements $26.7 million
General plant and equipment $7.5 million
Land $2.6 million
Lease Assets $0.5 million
The net increase to accumulated depreciation and amortization was $98.9 million which
takes into consideration the recording of depreciation and amortization relating to new
assets in addition to depreciation and amortization on existing assets offset by the
accumulated depreciation and amortization relieved for assets retired during the year.
During the 2022 fiscal year the District implemented two Governmental Accounting
Standards Board (“GASB”) Statements. See Note 1, Summary of Significant Accounting
Policies, in the accompanying notes to the financial statements for more detailed
information.
Required Financial Statements
The basic financial statements presented by the management of the District include the
Statements 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 Fiduciary Net Position. These statements are prepared using
the accrual basis of accounting in conformity with generally accepted accounting
principles in the United States of America as applied to government units. This method
of accounting 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 financial
statements.
The Statements of Net Position provide a report of the District’s current, restricted, and
other non-current assets such as cash, investments, receivables, and capital assets. Also,
the Statements of Net Position provide a summary of the District’s current, restricted,
and non-current liabilities, including contracts and accounts payable, deposits and
accrued expenses, pension and OPEB liabilities and bonds and notes payable. Deferred
outflows and inflows of resources, where applicable, are also included. The final section
of the Statements of Net Position, the net position section, contains earnings retained for
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 6
use by the District. Increases or decreases in the net position section may be indicative of
an improving or declining financial position. This statement provides 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 Statements of Revenues, Expenses, and Changes in Net Position summarize 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 and cash disbursements resulting from operating
activities, non-capital financing activities, capital, and related financing activities, and
investing activities. These statements assist the user in determining the sources of cash
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 a full understanding of the data provided in the basic financial statements, such
as the District’s significant accounting policies, investment instruments, outstanding
debt, employee benefit plans, segment information and subsequent events to name a few.
The Required Supplementary Information section provides detail in support of the
changes in the net pension liability and the total other postemployment 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 better historical
perspective and assist in assessing the current financial status and trends of the District
for which ten years of data is generally provided.
Financial Analysis
The District’s financial position improved in the current year, as evidenced by the
increase in net position of $147.7 million. The improvement is due primarily to an
increase in net investment in capital assets and subdistrict construction and
improvement funds, of $158.0 million, $11.3 million respectively; offset by a decrease in
unrestricted funds and debt service funds of $21.1 million and $0.5 million, respectively.
The increase in net investment in capital assets net position is comprised of a $230.3
million increase in net capital assets and $56.8 million decrease in debt related to capital
assets; offset by decrease of $112.8 million in unspent bond proceeds, $15.3 million in
construction-related liabilities, $0.8 million increase in deferred gain on debt refunding,
and the $0.2 million amortization of deferred losses.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 7
Condensed Financial Statements and Analysis
2023 Analysis
Current, non-current, restricted, and other assets decreased $107.7 million or 12.2% in
the current year. The decrease is predominately due to a decrease in cash and long-term
investments due to decrease in issuance of bonds. Capital assets net of accumulated
depreciation and amortization increased by $230.3 million or 5.4% in the current year as
the result of continued high levels of construction and acquisition of assets by the District.
Current liabilities increased by $25.6 million or 14.9% due primarily to an increase in
contracts and accounts payable, current portion of bonds and notes payable, and
retainage held on capital projects.
June 30, Increase Increase
June 30, 2022 (Decrease) June 30, (Decrease)
2023 As Restated 2023-2022 2021 2022-2021
Assets:
Current, non-current, restricted, and other assets 772,295$ 879,975$ (107,680)$ 831,541$ 48,434$
Capital assets (net of accumulated depreciation and amortization) 4,496,600 4,266,307 230,293 4,079,233 187,074
Total Assets 5,268,895 5,146,282 122,613 4,910,774 235,509
Deferred Outflows of Resources:
Bonds and notes payable-Deferred loss on refunding 2,808 3,069 (261) 5,469 (2,400)
Pension-related outflows 50,084 18,477 31,607 10,476 8,001
OPEB-related outflows 3,916 4,288 (372)3,537 751
Total Deferred Outflows of Resources 56,808 25,834 30,974 19,482 6,352
Liabilities:
Current liabilities 197,680 172,069 25,611 165,962 6,107
Non-current liabilities 1,924,964 1,924,343 621 1,833,143 91,200
Total Liabilities 2,122,644 2,096,412 26,232 1,999,105 97,307
Deferred Inflows of Resources:
Bonds and notes payable-Deferred gain on refunding 12,197 11,427 770 2,793 8,634
Pension-related inflows 1,419 23,194 (21,775) 22,671 523
OPEB-related inflows 4,499 3,446 1,053 3,888 (442)
Lease inflows 3,078 3,426 (348)3,773 (347)
Total Deferred Inflows of Resources 21,193 41,493 (20,300) 33,125 8,368
Net Position:
Net investment in capital assets 2,566,272 2,408,271 158,001 2,299,302 108,969
Restricted 106,787 96,029 10,758 97,920 (1,891)
Unrestricted 508,807 529,911 (21,104) 500,804 29,107
Total Net Position 3,181,866$ 3,034,211$ 147,655$ 2,898,026$ 136,185$
Condensed Statements of Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 8
Non-current liabilities increased by $0.6 million or 0.03% primarily due to net increases
in net pension liability of $63.4 million; offset by the net decrease in bonds and notes
payable, lease and subscription liability and OPEB liability of $60.4 million, $1.6 million
and $0.7 million, respectively. The net decrease in bonds and notes payable is primarily
related to the $56.3 million in senior and subordinate debt reclassified to current
liabilities and the net decrease of $4.0 million in amortization premiums received.
Net deferred outflows and inflows increased $51.3 million or 327.5% 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.
2022 Analysis
Current, non-current, restricted, and other assets increased $48.4 million or 5.8% in the
current year. The increase is predominately due to an increase in cash and long-term
investments due to increased unspent bond proceeds and more taxes levied and collected.
Capital assets net of accumulated depreciation and amortization increased by $187.1
million or 4.6% in the current year as the result of continued high levels of construction
and acquisition of assets by the District.
Current liabilities increased by $6.1 million or 3.7% due primarily to an increase in
contracts and accounts payable and retainage held on capital projects, offset by an
increase in current portion of bond and notes payable.
Non-current liabilities increased by $91.2 million or 5.0% primarily due to net increases
in bonds and notes payable, net pension liability and total OPEB liability of $70.4 million,
$4.4 million, and $1.9 million, respectively. The net increase in bonds and notes payable
is related to the $197.3 million new senior and direct placement debt issued in fiscal year
2022 and a net increase of $21.9 million in premiums received in fiscal 2022 on debt
issuances offset by $66.3 million for fiscal 2022 senior and subordinate debt payments
reclassified to current liabilities, $28.4 million current refunding of existing debt, and
$1.6 million amortization of premiums, net of discount.
Net deferred outflows and inflows decreased $2.0 million or 14.8% due primarily to
updates to various information provided by the District’s actuary such as
economic/demographic gains or losses, assumption changes or inputs, and investment
gains or losses related to the District’s net pension liability or total OPEB liability.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 9
For the Fiscal
For the Fiscal Year Ended Increase For the Fiscal Increase
Year Ended June 30, 2022 (Decrease) Year Ended (Decrease)
June 30, 2023 As Restated 2023-2022 June 30, 2021 2022-2021
Operating Revenues:
Sewer service charges 470,429$ 452,645$ 17,784$ 425,248$ 27,397$
Provision for doubtful sewer
service charge accounts (5,407) (5,076) (331) (5,347) 271
Licenses, permits, and other fees 3,913 3,937 (24) 3,754 183
Other 2,842 6,763 (3,921) 3,497 3,266
Total Operating Revenues 471,777 458,269 13,508 427,152 31,117
Non-operating Revenues:
Property taxes levied by the District 48,730 44,480 4,250 43,624 856
Investment income (loss) 12,660 (12,514) 25,174 1,392 (13,906)
Rent and other income 421 439 (18) 428 11
Total Non-operating Revenues 61,811 32,405 29,406 45,444 (13,039)
Total Revenues 533,588 490,674 42,914 472,596 18,078
Operating Expenses:
Pumping and treatment 67,521 65,550 1,971 64,475 1,075
Collection system maintenance 47,539 45,870 1,669 48,113 (2,243)
Engineering 11,621 11,674 (53) 11,501 173
General and administrative 66,784 52,518 14,266 54,868 (2,350)
Water backup claims 7,715 2,031 5,684 3,985 (1,954)
Depreciation 96,288 95,494 794 91,352 4,142
Lease and subscription amortization 7,229 6,031 1,198 142 5,888
Asset management 14,443 18,776 (4,333) 16,024 2,752
Total Operating Expenses 319,140 297,944 21,196 290,460 7,484
Non-operating Expenses:
Net loss on disposal and sale of capital assets 1,590 1,523 67 990 533
Non-recurring projects and studies 16,900 13,243 3,657 11,828 1,415
Interest expense 57,615 57,066 549 56,622 444
Total Non-operating Expenses 76,105 71,832 4,273 69,440 2,391
Total Expenses 395,245 369,776 25,469 359,900 9,875
Income Before Capital
Grants And Contributions 138,343 120,898 17,445 112,696 8,202
Capital Grants And Contributions 9,312 15,287 (5,975) 14,701 586
Change in Net Position 147,655 136,185 11,470 127,397 8,788
Net Position - Beginning of Year 3,034,211 2,898,026 136,185 2,770,629 127,397
Net Position - End of Year 3,181,866$ 3,034,211$ 147,655$ 2,898,026$ 136,185$
Statements of Revenues, Expenses, and Changes in Net Position
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 10
2023 Analysis
Net position increased $147.7 million or 4.9% over the prior year which was an $11.5
million or 8.4% increase from last year’s net position increase. The largest impacts to net
position were the increase in investment income and the increase in sewer service charge
revenue.
Total revenue increased by $42.9 million or 8.7% resulting primarily from the increase in
investment income and sewer service charges. Other operating revenue decreased $3.9
million or 58.0% primarily due to a reduction of liquidated damages and forfeited
deposits. Property taxes increased $4.2 million or 9.6% due primarily to higher property
valuation assessments. Investment income increased $25.2 million or 201.2% primarily
due to a $15.1 million unrealized gain on investments recorded in fiscal 2023 versus a
$12.3 million loss in unrealized loss in fiscal 2022.
Total expenses increased by $25.5 million or 6.9% resulting primarily from the increase
in operating expenses and non-recurring projects and studies. Operating expenses
increased $21.2 million or 7.1% with increases in general and administrative, water back
up claims, pumping and treatment, collection system maintenance, amortization, and
depreciation of $14.2 million, $5.7 million, $2.0 million, $1.7 million, $1.2 million and $0.8
million, respectively; offset by decreases in asset management of $4.3 million and
engineering of $0.1 million. General and administrative increased $14.2 million primarily
due to an increase in pension expense based on an actuarial study. Non-operating
expenses increased $4.3 million or 6.0% due primarily to increases in non-recurring
projects and studies.
Capital grants and contributions decreased $6.0 million or 39.1% with the majority of the
decrease resulting from capital contributions as the value of capital projects contributed
to the District decreased in fiscal 2023.
2022 Analysis
Net position increased $136.2 million or 4.7% over the prior year which was an $8.8
million or 6.9% increase from last year’s net position increase. The largest impacts to net
position were the increase in sewer service charge revenue and the decrease in
investment income.
Total revenue increased by $18.1 million or 3.8% resulting primarily from the increase in
sewer service charges. Other operating revenue increased $3.3 million or 7.3% primarily
due to an increase in liquidated damages and forfeited deposits. Property taxes increased
$0.9 million or 2.0% due primarily to higher property valuation assessments and re-
instatement of tax rates for several of the stormwater subdistricts. Investment income
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 11
decreased $13.9 million or 998.8% primarily due to an $12.3 million unrealized loss on
investments recorded in fiscal 2022.
Total expenses increased by $9.9 million or 2.7% resulting primarily from the increase in
operating expense and non-recurring projects and studies. Operating expenses increased
$7.5 million or 2.6% with increases in amortization, depreciation, asset management,
pumping and treatment and engineering of $5.9 million, $4.1 million, $2.8 million, and
$1.1 million and $0.2 million, respectively; offset by decreases in general and
administrative of $2.4 million, collection system maintenance of $2.2 and water backup
claims of $2.0 million Non-operating expenses increased $2.3 million or 3.3% due to
increases in non-recurring projects and studies.
Capital grants and contributions increased $0.6 million or 4.0% with the majority of the
increase resulting from capital contributions as the value of capital projects contributed
to the District increased in fiscal 2022.
For the Fiscal
For the Fiscal Year Ended Increase For the Fiscal Increase
Year Ended June 30, 2022 (Decrease)Year Ended (Decrease)
June 30, 2023 As Restated 2023-2022 June 30, 2021 2022-2021
Cash flows from operating
activities 230,156$ 236,671$ (6,515)$ 210,674$ 25,997$
Cash flows from non-capital
financing activities 47,404 43,982 3,422 42,689 1,293
Cash flows from capital
and related financing
activities (405,210) (223,610) (181,600) (211,637) (11,973)
Cash flows from investing
activities 42,383 (44,855) 87,238 (16,586) (28,269)
Net increase (decrease) in
cash and cash equivalents (85,267)12,188 (97,455) 25,140 (12,952)
Cash and cash equivalents
at beginning of year 134,453 122,265 12,188 97,125 25,140
Cash And Cash Equivalents
At End Of Year 49,186$ 134,453$ (85,267)$ 122,265$ 12,188$
Condensed Statements of Cash Flows
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 12
2023 Analysis
The District ended the year with $49.2 million in cash and cash equivalents for a decrease
of $85.3 million or 63.4% from the prior year. Cash flows from operating activities
decreased by $6.5 million or 2.8% is primarily due to an increased payments to suppliers
of $22.6 million; offset by increased receipts from customers of $17.1 million. Cash flows
from non-capital financing activities increased by $3.4 million or 7.8% due to higher taxes
receipts. Cash flows from capital and related financing activities decreased by $181.6
million or 81.2% due primarily to a $140.4 million decrease in bond proceeds from
issuance of debt received in fiscal year 2023 compared to fiscal year 2022, $37.0 million
increase in spending for capital assets, $3.1 million increase in principal, interest and
fees paid on bonds due and $0.6 million decrease in capital grant proceeds. Cash flows
from investing activities increased by $87.2 million or 194.5%. The increase primarily
stems from the fact that the difference between investments maturing increased $217.2
million while investments purchased increased by $132.8 million in fiscal 2023 compared
to fiscal year 2022.
2022 Analysis
The District ended the year with $134.5 million in cash and cash equivalents for an
increase of $12.2 million or 10.0% from the prior year. Cash flows from operating
activities increased by $26.0 million or 12.3% as a result of increased receipts from
customers. Cash flows from non-capital financing activities increased by $1.3 million or
3.0% due to higher taxes receipts. Cash flows from capital and related financing activities
decreased by $12.0 million or 5.7% due primarily to a $47.3 million decrease in bond
proceeds and premiums received in fiscal year 2022 compared to fiscal year 2021, an
increase of $8.0 million in principal, interest and fees paid on bonds due, a decrease of
$1.6 million in capital grant proceeds, and $1.1 million decrease in insurance proceeds,
offset by $45.6 million decrease in spending for capital assets. Cash flows from investing
activities decreased by $28.3 million or 170.4%. The decrease primarily stems from the
fact that the difference between investments maturing decreased $84.9 million while
investments purchased decreased by $59.2 million in fiscal 2022 compared to fiscal year
2021.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 13
Capital Assets
2023 Analysis
Total capital assets, net of accumulated depreciation and amortization, increased by
$230.3 million or 5.4% over the prior year. Construction in progress contained the
majority of the increase with net additions of $203.9 million or 17.3% consisting of $247.4
million in additions; offset by $43.5 million of assets placed in service. Collection and
pumping increased $48.3 million or 2.1%, primarily for capitalization of assets including
new and improved sewers, dedicated assets, and infrastructure repairs. Intangible assets
increased $8.5 million or 38.3% for capitalization of lease and subscription-based assets.
Land increased $1.4 million or 1.7% due to the acquisition of easements and other land.
General plant and equipment increased $0.6 million or 2.3%. These increases are offset
by net treatment and disposal plant and equipment decrease of $32.4 million or 5.3%.
For more detailed information, see Note 4, Capital Assets, in the accompanying notes to
the financial statements.
2022 Analysis
Total capital assets, net of accumulated depreciation and amortization, increased by
$187.1 million or 4.6% over the prior year. Collection and pumping plant assets contained
the majority of the increase with net additions of $184.4 million or 8.5%, primarily for
June 30, Increase Increase
June 30, 2022 (Decrease) June 30, (Decrease)
2023 As Restated 2023-2022 2021 2022-2021
Land 83,563$ 82,206$ 1,357$ 79,569$ 2,637$
Construction in progress 1,382,764 1,178,891 203,873 1,194,033 (15,142)
Treatment and disposal plant
and equipment 576,083 608,440 (32,357) 617,238 (8,798)
Collection and pumping plant 2,396,090 2,347,735 48,355 2,163,327 184,408
Intangible assets 30,531 22,077 8,454 891 21,186
General plant and equipment 27,569 26,958 611 24,175 2,783
Total 4,496,600$ 4,266,308$ 230,293$ 4,079,233$ 187,074$
The Metropolitan St. Louis Sewer District
Condensed Statements of Capital Assets
Net of Depreciation and Amortization
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 14
capitalization of assets including new and improved sewers, dedicated assets, and
infrastructure repairs. Intangible assets increased $21.2 million or 2378.9% for
capitalization of lease and subscription-based assets. Land increased $2.6 million or 3.3%
due to the acquisition of easements and other land. General plant and equipment
increased $2.8 million or 11.5%. These increases are offset by construction in progress
decrease of $15.1 million or 1.3% and net treatment and disposal plant and equipment
decrease of $8.8 million or 1.4% due to no large projects being capitalized in fiscal 2022
to offset the depreciation charge for the year. For more detailed information, see Note 4,
Capital Assets, in the accompanying notes to the financial statements.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 15
Long-Term Debt
Increase Increase
June 30, June 30, (Decrease) June 30, (Decrease)
2023 2022 2023-2022 2021 2022-2021
Senior Revenue Bonds:
Series 2010B 85,000$ 85,000$ —$ 85,000$ —$
Series 2012A 3,675 3,675 — 40,320 (36,645)
Series 2012B 940 940 — 37,800 (36,860)
Series 2013B — 35,470 (35,470) 38,990 (3,520)
Series 2015B 159,740 162,960 (3,220) 166,030 (3,070)
Series 2016C 132,475 135,670 (3,195) 138,740 (3,070)
Series 2017A 289,050 300,090 (11,040) 305,580 (5,490)
Series 2019B 49,495 50,415 (920) 51,295 (880)
Series 2019C (Taxable)271,630 273,200 (1,570) 274,745 (1,545)
Series 2020B 114,170 116,160 (1,990) 118,055 (1,895)
Series 2022B 102,725 109,070 (6,345) — 109,070
Water Infrastructure Finance &
Innovation Act (WIFIA) Senior Bonds:
Series 2018A 262 262 0 262 (0)
Senior Refunding Revenue Bonds,
Direct Placement:
Series 2021C 5,620 5,620 — 5,620 —
Series 2022A 39,845 39,845 — — 39,845
Series 2023A 23,040 — 23,040 — —
Subordinate Revenue Bonds
(State Revolving Funds Program):
Series 2004B 27,475 37,085 (9,610) 46,625 (9,540)
Series 2005A 1,640 2,025 (385) 2,400 (375)
Series 2006A 10,955 13,545 (2,590) 16,075 (2,530)
Series 2006B 4,310 5,110 (800) 5,890 (780)
Series 2008A/B 13,645 15,740 (2,095) 17,790 (2,050)
Missouri Department of
Natural Resources:
Series 2009A 9,456 10,688 (1,232) 11,892 (1,204)
Series 2010A 3,865 4,278 (413) 4,683 (405)
Series 2010C 17,440 19,379 (1,939) 21,269 (1,890)
Series 2011A 24,795 26,727 (1,932) 28,611 (1,884)
Series 2013A 33,762 36,252 (2,490) 38,679 (2,427)
Series 2015A 51,710 55,384 (3,674) 58,973 (3,589)
Series 2016A 15,183 16,102 (919) 17,001 (899)
Series 2016B 59,060 62,492 (3,432) 65,850 (3,358)
Series 2018B 23,562 24,641 (1,079) 24,303 338
Series 2019A 23,952 23,952 — 22,012 1,940
Series 2020A 22,000 20,872 1,128 9,983 10,889
Series 2021A 27,416 20,853 6,563 5,333 15,520
Series 2021B 37,557 25,546 12,011 7,260 18,286
Series 2021C 98 — 98 — —
Series 2022A 738 — 738 — —
Series 2023A — — — — —
Total 1,686,287$ 1,739,050 (52,763)$ 1,667,066$ 71,983$
Condensed Statements of Long-Term Debt
(000's)
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 16
2023 Analysis
The District ended fiscal year 2023 with $1.7 billion in long-term debt outstanding. The
District had one senior refunding revenue bond direct placement addition, Series 2023A,
totaling $23.0 million. 2023A was used to refund $31.8 million of the Series 2013B. The
District also received $1.1 million, $6.6 million, $13.8 million, $0.1 million, and $0.7
million in loan proceeds from the Series 2020A, Series 2021A, Series 2021B, Series
2022C, and Series 2022D Missouri Department of Natural Resources bonds, respectively.
Total principal payments of $98.1 million, excluding the refunding referenced above,
reduced outstanding debt in fiscal year 2023. For more detailed information, see Note 7,
Long-Term Liabilities, in the accompanying notes to the financial statements.
2022 Analysis
The District ended fiscal year 2022 with $1.7 billion in long-term debt outstanding. The
District had one senior revenue bond addition this year, Series 2022B, totaling $109.1
million and one senior refunding revenue bond direct placement addition, Series 2022A,
totaling $39.8 million. 2022A was used to refund $31.3 million of the Series 2012A senior
revenue bond and $23.5 million of the Series 2012B senior revenue bond. 2022B was used
to refund $9.3 million of senior revenue bond 2012B. The District also received $0.3
million, and $1.9 million, $10.9 million, $15.5 million, and $19.2 million in loan proceeds
from the Series 2018B, Series 2019A, Series 2020A, Series 2021A, and Series 2021B
Missouri Department of Natural Resources bonds, respectively. Total principal payments
of $51.8 million, excluding the refunding referenced above, reduced outstanding debt in
fiscal year 2022. For more detailed information, see Note 7, Long-Term 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 (“CD”)
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. See Note 15, Commitments and
Contingencies, for additional information regarding this litigation. The goal of MSD
Project Clear is to help MSD’s rate payers have a clear understanding of MSD’s goals and
objectives. MSD Project Clear consists of three main components:
Getting the Rain Out which is focused on reducing excess stormwater from
entering the sewer system infrastructure to help reduce basement back-ups and
overflows;
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Management’s Discussion And Analysis (Continued)
Page 17
Performing Repair and Maintenance to the existing infrastructure to ensure it
operates as well as possible for as long as possible; and
Building System Improvements where needed to increase the capacity of
the system.
MSD Project Clear will greatly 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.
Since February 2004, the voters in the District’s service area have authorized the District
to issue a total of $3.1 billion in wastewater revenue bonds. As of June 30, 2023, the
District has issued $2.5 billion of the total authorization. The District’s long-term
wastewater capital improvement program will continue to be funded through a
combination of additional bonds and wastewater 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. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
314-768-6200
mgee@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See the accompanying notes to financial statements.
Page 18
STATEMENTS OF NET POSITION
Continued on Next Page
June 30,
2023 2022
Assets As restated
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 17,834,681 64,845,757
Investments 244,927,665 187,145,188
Sewer service charges receivable, less allowance of $80,431,605 in 2023 and
75,304,317 in 2022 73,081,829 69,517,193
Unbilled sewer service charges receivable 38,191,543 36,419,844
Property taxes receivable, less allowance of $7,605 in 2023 and $6,023 in 2022 394,915 294,552
Accrued income on investments 1,781,409 1,067,364
Other receivables, less allowance of $70,249 in 2023 and $54,456 in 2022 4,805,706 2,814,607
Supplies inventory 9,412,495 8,923,100
Total Unrestricted Current Assets 390,430,243 371,027,605
Restricted Current Assets
Cash and cash equivalents 801,905 2,978,669
Investments 17,305,072 9,896,863
Other receivables 33,628 28,747
Total Restricted Current Assets 18,140,605 12,904,279
Total Current Assets 408,570,848 383,931,884
Non-Current Assets
Restricted Assets
Cash and cash equivalents 30,550,560 66,628,666
Investments 28,459,337 98,773,850
Long-term investments 40,193,770 41,824,592
Property taxes receivable, less allowance of $78,658 in 2023 and $35,016 in 2022 2,200,125 1,680,621
Accrued income on investments 301,953 165,274
Total Restricted Non-Current Assets 101,705,745 209,073,003
Other Assets
Notes receivable 8,166,905 8,947,222
Long-term investments 250,839,436 274,713,717
Other Receivables - Non Current (Leases) 3,012,760 3,308,705
Total Other Assets 262,019,101 286,969,644
Capital Assets
Depreciable:
Treatment and disposal plant and equipment 1,334,209,664 1,332,498,020
Collection and pumping plant 3,432,433,770 3,329,457,199
General plant and equipment 114,430,454 109,585,527
Intangible assets 43,025,927 28,250,114
4,924,099,815 4,799,790,860
Less: Accumulated depreciation 1,881,332,244 1,788,407,446
Less: Accumulated amortization 12,495,249 6,172,797
Net depreciable assets 3,030,272,322 3,005,210,617
Non-depreciable:
Land 83,562,961 82,205,848
Construction in progress 1,382,764,431 1,178,890,914
Net Capital Assets 4,496,599,714 4,266,307,379
Total Non-Current Assets 4,860,324,560 4,762,350,026
Total Assets 5,268,895,408 5,146,281,910
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 19
STATEMENTS OF NET POSITION (Continued)
June 30,
2023 2022
As restated
Deferred Outflows of Resources
Bonds and notes payable-Deferred loss on refunding 2,808,207 3,068,689
Pension-related outflows 50,084,383 18,476,825
OPEB-related outflows 3,914,965 4,288,181
Total Deferred Outflows of Resources 56,807,555 25,833,695
Liabilities
Current Liabilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 52,907,487 36,724,568
Lease and subscription liabilities 5,139,685 6,364,859
Deposits and accrued expenses 45,344,739 42,765,410
Retainage payable 22,568,595 18,224,079
Current portion of bonds and notes payable 69,922,300 66,337,500
Total Current Liabilities-Payable From Unrestricted Assets 195,882,806 170,416,416
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 1,224,049 828,414
Retainage payable 573,633 824,282
Total Current Liabilities-Payable From Restricted Assets 1,797,682 1,652,696
Total Current Liabilities 197,680,488 172,069,112
Non-Current Liabilities
Deposits and accrued expenses 9,291,552 9,375,268
Net pension liability 97,264,333 33,871,056
Lease and subscription liabilities 13,532,086 15,119,245
Total OPEB liability 26,108,766 26,793,582
Bonds and notes payable 1,778,767,095 1,839,184,214
Total Non-Current Liabilities 1,924,963,832 1,924,343,365
Total Liabilities 2,122,644,320 2,096,412,477
Deferred Inflows of Resources
Bonds and notes payable-Deferred gain on refunding 12,197,090 11,427,026
Pension-related inflows 1,418,903 23,194,024
OPEB-related inflows 4,498,508 3,445,503
Lease Inflows 3,078,176 3,425,569
Total Deferred Inflows of Resources 21,192,677 41,492,122
Net Position
Net investment in capital assets 2,566,272,572 2,408,270,879
Restricted for:
Debt service 23,647,158 24,146,279
Subdistrict construction and improvement 83,139,418 71,883,165
Unrestricted 508,806,818 529,910,683
Total Net Position 3,181,865,966 3,034,211,006
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 20
STATEMENTS OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
2023 2022
As restated
Operating Revenues
Sewer service charges 470,429,270$ 452,645,091$
Provision for doubtful sewer service charge accounts (5,407,439) (5,076,402)
Licenses, permits and other fees 3,913,395 3,937,368
Other 2,841,581 6,763,143
Total Operating Revenues 471,776,807 458,269,200
Operating Expenses
Pumping and treatment 67,520,697 65,549,965
Collection system maintenance 47,538,772 45,869,500
Engineering 11,621,276 11,674,101
General and administrative 66,784,470 52,518,859
Water backup claims 7,715,448 2,030,765
Depreciation 96,287,564 95,494,079
Lease and subscription amortization 7,228,679 6,030,593
Asset management 14,442,774 18,776,087
Total Operating Expenses 319,139,680 297,943,949
Operating Income 152,637,127 160,325,251
Non-Operating Revenues
Property taxes levied by the District 48,729,488 44,479,669
Investment income (loss) 12,659,955 (12,513,973)
Rent and other income 421,374 439,491
Total Non-Operating Revenues 61,810,817 32,405,187
Non-Operating Expenses
Net loss on disposal and sale of capital assets 1,590,439 1,523,315
Non-recurring projects and studies 16,900,191 13,243,185
Interest expense 57,614,830 57,065,739
Total Non-Operating Expenses 76,105,460 71,832,239
Income Before Capital Grants And Contributions 138,342,484 120,898,199
Capital Grants And Contributions
Capital assets contributed 8,489,372 13,349,472
Grant revenue 823,104 1,937,946
Total Capital Grants And Contributions 9,312,476 15,287,418
Change In Net Position 147,654,960 136,185,617
Net Position - Beginning Of Year, as restated 3,034,211,006 2,898,025,389
Net Position - End Of Year 3,181,865,966$ 3,034,211,006$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 21
STATEMENTS OF CASH FLOWS
2023 2022
As restated
Cash Flows From Operating Activities
Received from customers 469,303,059$ 452,184,440$
Paid to employees for services (106,680,781) (105,607,408)
Paid to suppliers for goods and services (132,466,175) (109,906,382)
Net Cash Provided By Operating Activities 230,156,103 236,670,650
Cash Flows Provided By Non-Capital Financing Activities
Taxes levied and collected 47,404,433 43,982,614
Cash Flows From Capital And Related Financing Activities
Proceeds from capital grants 1,363,940 1,944,266
Proceeds from issuance of debt 21,471,751 148,531,457
Premium and (Discount) on sale of bonds — 13,362,572
Principal paid on debt (69,622,992) (67,915,074)
Interest and fees paid on debt (66,866,787) (65,442,437)
Payments for capital assets (294,506,930) (257,484,786)
Proceeds from sale of capital assets 153,607 174,195
Proceeds received from other organization for their contribution to
construction of treatment plant 1,154,696 1,576,500
Build America Bond tax credit 1,642,857 1,642,857
Net Cash (Used In) Capital And Related -
Financing Activities (405,209,858) (223,610,450)
Cash Flows From Investing Activities
Purchase of investments (707,294,179) (574,463,863)
Proceeds from sale and maturity of investments 738,900,900 521,629,000
Investment income 10,424,225 7,667,949
Proceeds from rents 352,430 312,357
Net Cash Provided By (Used In) Investing Activities 42,383,376 (44,854,557)
Net (decrease) increase in cash and cash equivalents (85,265,946) 12,188,257
Cash And Cash Equivalents At Beginning Of Year 134,453,092 122,264,835
Cash And Cash Equivalents At End Of Year 49,187,146$ 134,453,092$
Statements of Net Position Classification
Current Assets - Unrestricted Cash and cash equivalents 17,834,681$ 64,845,757$
Current Assets - Restricted Cash and cash equivalents 801,905 2,978,669
Non-Current Assets - Restricted Cash and cash equivalents 30,550,560 66,628,666
Statements of Net Position Total Cash And Cash Equivalents 49,187,146$ 134,453,092$
Non-Cash Capital And Investing Activities
Net proceeds from debt issuance placed into escrow to refund bonds 28,486,911$ 57,528,822$
Principal amount reduced and placed in escrow and related
deferred loss/gain and premium (28,388,911) (57,939,536)
Proceeds from debt issuance used to pay underwriters directly — 388,277
Capital asset additions included in accounts payable 31,883,942 18,069,169
Capital assets contributed by other governments and developers 8,489,372 13,349,472
Fair value investment adjustment (gain) loss (971,312) 20,249,148
Grant revenue (expense)(70,447) 479,585
Capital assets acquired through leases and subscriptions 2,993,834 27,217,261
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 22
STATEMENTS OF CASH FLOWS (Continued)
2023 2022
As restated
Reconciliation Of Operating Income To Net Cash Flows
Provided By Operating Activities
Operating Income 152,637,127 160,325,251$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization 103,516,243 101,524,672
Non-recurring projects and studies (16,900,191) (13,243,185)
Tax commission fees 708,889 642,255
Change in operating assets and liabilities:
(Increase) in billed and unbilled sewer service
c harges receivable (5,336,335) (4,579,490)
Decrease in other receivables (8,873,684) (6,691,264)
Decrease (increase) in supplies inventory (489,395) (447,681)
Decrease in pension-related outflows (31,607,558) (8,000,405)
(Increase) decrease in OPEB-related outflows 373,216 (751,265)
(Decrease) increase in contracts and accounts payab (7,851,150) 1,085,968
(Decrease) increase in deposits and accrued expense 2,339,990 824,310
(Decrease) in net pension liability 63,393,276 4,375,878
(Decrease) increase in total OPEB liability (684,816) 1,872,954
(Decrease) increase in pension-related inflows (21,775,121) 522,626
(Decrease) increase in OPEB-related inflows 1,053,005 (442,582)
(Decrease) increase in Lease-related inflows (347,393) (347,393)
Net Cash Provided By Operating Activities 230,156,103$ 236,670,650$
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 23
STATEMENTS OF FIDUCIARY NET POSITION
EMPLOYEES’ PENSION PLAN
2022 2021
ASSETS
Investments at Fair Value:
Collective Investment Funds 148,247,202$ 185,031,152$
Mutual Funds 54,377,892 62,608,137
Real Estate Investments 24,002,654 29,021,383
Corporate Obligations 23,878,019 27,025,796
Domestic Common Stocks 16,463,329 21,934,156
US Treasury and Agency Obligations 15,790,260 19,727,449
Money Market Funds 5,073,752 3,666,492
Municipal Obligations 1,542,370 1,370,872
Total Investments 289,375,478 350,385,437
Receivables
Interest and Dividends Receivable 865,622 237,314
Total Receivables 865,622 237,314
Total Assets 290,241,100 350,622,751
LIABILITIES
Accrued Expenses 162,475 248,908
Total Liabilities 162,475 248,908
FIDUCIARY NET POSITION RESTRICTED FOR
PENSION BENEFITS 290,078,625$ 350,373,843$
December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
See accompanying Notes to Financial Statements.
Page 24
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
EMPLOYEES’ PENSION PLAN
For the Years Ended
December 31,
2022 2021
ADDITIONS TO NET POSITION ATTRIBUTED TO:
Investment Income:
Net Change in Fair Value of Investments (51,419,154)$ 28,693,382$
Interest and Dividends 2,147,493 4,440,589
Total Investment Income (Loss) (49,271,661) 33,133,971
Less - Investment Managers' and Advisors' Fees 911,722 1,051,185
Net Investment Income (Loss) (50,183,383) 32,082,786
Employer Contributions 12,358,047 12,159,284
Total Additions (37,825,336) 44,242,070
DEDUCTIONS FROM NET POSITION ATTRIBUTED TO:
Benefits Paid to Retirees and Beneficiaries 22,359,931 20,665,530
Administrative Expenses 109,951 115,381
Total Deductions 22,469,882 20,780,911
NET INCREASE (DECREASE)(60,295,218) 23,461,159
FIDUCIARY NET POSITION RESTRICTED FOR
PENSION BENEFITS, January 1 350,373,843 326,912,684
FIDUCIARY NET POSITION RESTRICTED FOR
PENSION BENEFITS, December 31 290,078,625$ 350,373,843$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 25
NOTES TO FINANCIAL STATEMENTS
June 30, 2023 AND 2022
1. Summary of Significant Accounting Policies
Organization
The Metropolitan St. Louis Sewer District (“District”) was authorized by the
voters, established and chartered under Article VI, Section 30 of the Constitution
of Missouri as a municipal corporation and a political subdivision of the State of
Missouri. Upon creation in 1954, the District assumed responsibilities to provide
for the construction, operation, and maintenance of the sewer facilities within its
defined boundaries. The District’s service area now comprises all of the City of St.
Louis and most of St. Louis County. Subdistricts within the District’s total service
area represent separate geographic areas within which specific taxes can be levied
to operate and maintain wastewater or stormwater facilities within the area or
construct improvements within the subdistrict. The District also maintains all of
the publicly owned stormwater sewers within its original boundaries and is
continuing to accept maintenance of the stormwater sewers in the remainder of its
service area.
Pursuant to provisions of its Charter and subject to limitations imposed by the
Constitution of Missouri, all powers of the District are vested in a six-member
Board of Trustees (“Board”), three of whom are appointed by the 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 same political party.
Reporting Entity
The District defines its financial reporting entity to include all component units
for which the District’s governing body is financially accountable. To be considered
financially accountable, the component unit must be fiscally dependent on the
District and the District must either 1) be able to impose its will on the component
unit or 2) the relationship must have the potential for creating a financial benefit
or imposing a financial burden on the District.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 26
The District sponsors a single employer defined benefit pension plan and trust for
which the District contributes the actuarially determined contribution each year.
Pursuant to the adoption in fiscal year 2021 of Statement No. 84 of the
Governmental Accounting Standards Board, Fiduciary Activities, it was
determined that the defined benefit pension plan 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 Changes 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
publicly 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 msdprojectclear.org website. While included in the separately
issued report, the Cash and Investments and the Fair Value Measurement and
Application note disclosures for the fiduciary activity are presented herein as
Notes 9 and 10.
Based on the foregoing, the District’s financial statements include all funds that
are established under the authority of the District’s charter. There are no agencies,
boards, commissions, or authorities that are controlled by or dependent on the
District.
Measurement Focus, Basis of Accounting and Financial Statement
Presentation
The Governmental Accounting Standards Board (“GASB”) is the accepted
standard-setting body for establishing accounting and financial reporting
standards for U.S. state and local governments that follow generally accepted
accounting principles (“GAAP”). As a political subdivision of the State of Missouri,
the District follows GASB Pronouncements.
Throughout the 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 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. The District’s fiduciary financial statements are also presented in
conformity with accounting principles generally accepted in the United States of
America on an accrual basis of accounting. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recognized when the
related liability is incurred. The District’s measurement focus for both the basic
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 27
financial statements and the financial statements of the District’s fiduciary
activity is on the flow of economic resources.
Revenues and expenses are divided into operating and non-operating items.
Operating revenues generally result from providing services 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 expenses include the costs associated with the conveyance and
treatment of wastewater and stormwater, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting these
definitions are reported as non-operating revenues and expenses. Non-recurring
projects and studies (shown as non-operating expenses) consist of expenses related
to unusual charges or losses that are unlikely to occur again in the formal course
of business such as work related to federally declared disasters, projects originally
intended to be capitalized that changed scope when a decision was made to no
longer build an asset, and any non-reimbursed work performed on assets not
owned or maintained by the District but 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 No. 33, Accounting and Financial Reporting
for Nonexchange Transactions, which establishes accounting and financial
reporting standards for nonexchange transactions involving financial or capital
resources. GASB Statement No. 33 groups nonexchange transactions into the
following four classes, based upon their principal characteristics: derived tax
revenues, imposed nonexchange revenues, government-mandated nonexchange
transactions, and voluntary nonexchange transactions.
The District recognizes assets from imposed nonexchange revenue transactions in the
period when an enforceable legal claim to the assets arises or when the resources are
received, whichever occurs first. Revenues are recognized in the period when the
resources are required to be used for the first period that use is permitted. The District
recognizes revenues from property taxes, net of estimated refunds and estimated
uncollectible amounts, in the period for which the taxes are levied. Imposed
nonexchange revenues also include licenses, permits, and other fees.
Intergovernmental 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. 33, have been met.
Any resources received where all requirements are met with the exception of the
time requirement are recorded as deferred inflows. All other resources received
before any other eligibility requirements are met are reported as unearned
revenues.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 28
Cash and Cash Equivalents
The District considers highly liquid investments that have original maturity of less
than 91 days to the District to be Cash Equivalents.
Investments
The District accounts for its investments at fair 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, Fair Value
Measurement and Application. The hierarchy is based on the valuation inputs used
to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. Changes in unrealized gain
(loss) on the carrying value of investments are reported as a component of
investment 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 non-current assets or for other restricted purposes.
Accounts Receivable
Accounts receivable is composed primarily of charges to customers for wastewater
services. Accounts are considered past due 30 days from the invoice date.
Receivables are reported at their gross values net of an allowance for uncollectible
amounts. This allowance for uncollectible amounts is based on historical collection
experience. Throughout the fiscal year unbilled sewer service charge revenues are
accrued by the District based on estimated billings for services provided and then
actual unbilled sewer service charge revenue is accrued at the end of the fiscal year
as all ratepayers are billed in the following month for the previous calendar
month’s services with the billings spread over twenty-three different billing cycles.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 29
Capital Assets
Acquired capital assets are recorded at historical cost on the acquisition date. In
accordance with GASB Statement No. 72, donated capital assets are recorded at
their estimated acquisition value at the acquisition date. Depreciation is calculated
on a straight-line basis over the following estimated useful lives:
When developing user charge rates, the District includes funding for replacement
cost of assets, which may differ from depreciation 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 an initial, individual cost between
$5,000 and $15,000, depending on the asset category, and an estimated useful life
of at least three years. At the time of retirement or disposal of capital assets, the
related cost and accumulated depreciation are removed from the accounts and the
resulting net gain or loss on disposal and sale of capital assets is reflected in non-
operating expenses.
Costs incurred for capital construction and acquisition are carried in construction
in progress until completion of the related projects. The major components of
construction in progress are the costs incurred to construct new tunnels, storage
facilities and sewer lines, rehabilitate and separate existing sewer lines, and to
make improvements to pump stations and treatment plants. Costs related to
projects not pursued are expensed when terminated.
Supplies 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 inventory figure is netted against those materials and supplies
deemed to be potentially obsolete. All inventory is stated at weighted average cost
and expenses are recognized when the inventory is consumed.
Class of Assets
Useful Life
in years
Buildings (recorded within other categories) 20 to 50
Collection System 20 to 100
Pumping System 5 to 50
Treatment & Disposal Plant 5 to 50
Vehicles 7 to 10
General Support Equipment & Furniture 3 to 10
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 30
Net Position
One component of the District’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 assets. 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 net
position.
The restricted component of net position consists of assets and liabilities regulated
by external constraints imposed by creditors, grantors, contributors, laws, or
regulations of other governments or constraints imposed by law through
constitutional provisions or enabling legislation. Property taxes levied by the
various subdistricts and other revenues received for construction in those sub-
districts have also been restricted for that use. Sewer extension and connection
fees, grants, and other revenues received for construction within certain sub-
districts have been restricted for that use. In addition, a portion of wastewater
sewer charges have been restricted for the payment of principal and interest,
including accrued interest, on outstanding debt of the District.
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 assets. The
District first applies restricted resources when an expense is incurred for purposes
for which both restricted and unrestricted 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 resources represent a
consumption of net assets that applies to future reporting periods and will not be
recognized as an outflow of resources until then. Deferred 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 which is amortized over the shorter of
the life of the refunded or refunding debt. The pension related deferred outflows of
resources represent contributions made to the plan between the measurement date
of the pension liability and the beginning of the next fiscal year as well as certain
actuarial differences and changes that are amortized over future periods. The other
postemployment benefit (“OPEB”) related deferred outflows of resources represent
benefit payments made between the measurement date of the total OPEB liability
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 31
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 to liabilities, financial statements may report a separate section for
deferred inflows of resources. Deferred inflows of resources represent an
acquisition of net assets that applies to future reporting periods and so will not be
recognized as an inflow of resources until then. Deferred inflows of resources
related to refunding long-term debt is also reported in the Statements of Net
Position due to the recognition of a deferred gain resulting from the difference in
the carrying value of refunded debt and its reacquisition price and this gain is
amortized over the shorter of the life of the refunded or refunding debt. The District
also has deferred inflows of resources related to certain changes in pension, leases
and OPEB obligations that are amortized over future periods.
Lease-related amounts are recognized at the inception of leases in which the
District is the lessor. The deferred inflow of resources is recorded in an amount
equal to the corresponding lease receivable plus certain ancillary amounts received
from the lessee at or before the commencement of the lease term that relate to
future periods, less any lease incentives paid to, or on behalf of, the lessee at or
before the commencement of the lease term. Subsequently, the deferred inflow of
resources is recognized as revenue over the life of the lease term.
Capital Contributions
Capital contributions to the District represent government grants and other aid
used to fund capital projects and are reported at their estimated acquisition value.
In accordance with GASB Statement No. 33, capital contributions are recognized
as revenue when the expenditure is made and the amount becomes subject to claim
for reimbursement.
Bonds, Bond Premiums, Discounts and Issuance Costs
Bonds and notes payable are recorded at the principal amount outstanding and
are reported 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 using the effective interest method. Bond issuance costs are expensed
when incurred pursuant to GASB Statement No. 65, Items Previously Reported as
Assets 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 trust
with an escrow agent to provide for all future debt service payments on the
refunded debt are not included in investments.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 32
Compensated Absences
Vacation
Under the terms of the District’s personnel policies, employees are allowed to carry
a maximum of 30 to 45 days of vacation (depending on length of service) from one
calendar year to the next. Since vacation remaining at year-end is expected to be
used by the employee during the following fiscal year, the value is reported as a
component of current deposits and accrued expenses payable.
Sick Leave
Employees earn sick pay benefits ranging from 10 days per year to 12 days per
year (depending on length of service). Unused sick leave can be carried over at
year-end without limitation. An employee retiring or an employee who dies while
in active service with five or more years of service with the District, will be
compensated for any unused accrued sick leave at the rate of 1.25% for each year
of District service multiplied by the unused accrued sick leave remaining at the
employee’s current rate of pay up to a maximum of $50,000. The District has
recorded a liability which has been actuarially determined to be equal to the
accumulated expense charge that will amortize the employees’ benefits over their
period of District service. The liability, 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 sick leave expected to be paid
after one year is recorded as a component of non-current deposits and accrued
expenses payable.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, the
fiduciary net position of The Metropolitan St. Louis Sewer District Employees’
Pension Plan (“Pension Plan”) and additions to/deductions 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 December 31 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 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 estimates.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 33
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 2023, the District implemented GASB Statement No. 96,
Subscription-Based Information Technology Arrangements (SBITAs) (“GASB
Statement No. 96”). SBITAs, which include software contracts, are reported in the
applicable government-wide financial statements. A SBITA is a contact that
conveys control of the right to use another party’s (a SBITA vendor’s) information
technology (IT) software as specified in the contract for a period of time in an
exchange or exchange-like transaction. SBITA contracts contain non-cancellable
terms of 12 months or greater; OR non-cancellable terms of 12 months or less with
the option to extend (regardless of the probability of being exercised). SBITAs are
recorded at the net present value of subscription payments expected to be made
during the subscription term, plus any payments made to the SBITA vendor before
the commencement of the subscription term and certain direct costs (less any
incentives). A subscription asset should be amortized over the shorter of the
subscription term or the useful life of the underlying IT asset.
This resulted in the District retroactively restating the beginning balance of net
position due to the recognition of subscription asset and subscription liability. The
cumulative effect of applying GASB Statement No. 96 and the resulting
restatement of beginning net position on the District’s Statements of Revenues,
Expenses, and Changes in Net Position is detailed as follows:
July 1,
2022
Net Position - Beginning Of Year, As Previously Stated 3,033,641,753$
Effect of Adoption of GASB 96 569,253
Net Position - Beginning Of Year, As Restated 3,034,211,006$
Effect of Adoption of GASB 96 - Restatement Consists Of
Subscription asset, net of amortization 20,829,071$
Recognition of interest payable reported as contracts and accounts payable (21,231)
Subscription liablity (20,238,587)
Effect of Adoption of GASB 96 569,253$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 34
During fiscal year 2022, the District implemented GASB Statement No. 87, Leases,
(“GASB Statement No. 87”). GASB Statement No. 87 requires recognition of
certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized inflows of resources or outflows of resources based
on the payment provisions of the contract. It established a single model for lease
accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. A lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a
lease receivable and deferred inflow of resources.
The District’s adoption of GASB Statement No. 87 in fiscal year 2022 resulted in
retroactively restating the beginning balance of net position due to the recognition
of lease receivable, right of use lease asset, lease liability, and deferred inflow of
resources. The cumulative effect of applying GASB Statement No. 87 and the
resulting restatement of beginning net position on the District’s Statement of
Revenues, Expenses, and Changes in Net Position is detailed as follows:
During fiscal year 2022, the District implemented GASB Statement No. 98, The
Annual Comprehensive Financial Report. This statement establishes the term
annual comprehensive financial report and its acronym, ACFR. That new term and
acronym replaces the prior name, comprehensive annual financial report, and its
acronym.
July 1,
2021
Net Position - Beginning Of Year, As Previously Stated 2,897,926,670$
Effect of Adoption of GASB 87 98,719
Net Position - Beginning Of Year, As Restated 2,898,025,389$
Effect of Adoption of GASB 87 - Restatement Consists Of
Total lease receivables 3,877,683$
Lease right of use asset, net of amortization 890,649
Recognition of interest payable reported as contracts and accounts payable (478)
Lease liability (896,473)
Deferred inflows related to leases (3,772,962)
Effect of Adoption of GASB 87 98,419$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 35
During fiscal year 2022, the District implemented portions of GASB Statement No.
99, Omnibus 2022. This statement clarified provisions in GASB Statement No. 87,
Leases, relating to the determination of the lease term, classification of a lease as
a short-term lease, recognition and measurement of lease liability and a lease
asset, and identification of lease incentives. This statement also clarified
provisions in GASB Statement No. 96, Subscription-Based Information Technology
Arrangements, related to the subscription-based technology arrangement (SBITA)
term, classification of a SBITA as a short-term SBITA, and recognition and
measurement of a subscription liability.
During fiscal year 2022, the District implemented all applicable and relevant
sections of Implementation Guide No. 2019-3, Leases, for which the objective of
this Implementation Guide is to provide guidance that clarifies, explains, or
elaborates on the requirements of Statement No. 87, Leases.
The following GASB Statements which became effective during fiscal year 2023
and 2022 are not applicable to the District and there is no implementation impact
on the District’s financial reporting at this time.
•Statement No. 91, Conduit Debt Obligations (fiscal 2023)
•Statement No. 92, Omnibus 2020 (fiscal 2022)
•Statement No. 93, Replacement of Interbank Offered Rates (fiscal 2022)
•Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements (fiscal 2023)
Recent Accounting Standards
GASB has issued additional guidance that is not yet effective. The District is
currently reviewing the provisions of the following GASB Statements to determine
the impact of implementation in future periods.
•Statement No. 100, Accounting Changes and Error Corrections (fiscal
2024)
•Statement No. 101, Compensated Absences (fiscal 2025)
Reclassifications
Prior period financial statement amounts may have been reclassified to conform to
current period presentation. These reclassifications had a $728,018 increase to
fiscal year 2022’s total net position.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 36
2. Deposits and Investments
Deposits
At June 30, 2023, the reported amount of the District’s deposits was $(8,339,089)
and the bank balance was $2,561,159. Of the bank balance, $411,691 was covered
by the Federal Deposit Insurance Corporation (“FDIC”); $2,149,468 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$23,107,546 held in a trusted escrow account for the State that will be used to
make future bond payments.
At June 30, 2022, the reported amount of the District’s deposits was $63,887,919
and the bank balance was $73,069,173. Of the bank balance, $936,976 was covered
by the Federal Deposit Insurance Corporation (“FDIC”); $72,132,197 was
collateralized with securities held by a third-party financial institution in the
District’s name. In addition, the District has money market mutual funds of
$21,617,850 held in a trusted escrow account for the State that will be used to
make future bond payments.
Custodial credit risk for deposits is the risk that, in the event of bank failure, the
District’s deposits may not be returned to the District. Deposits in each bank are
insured by the FDIC in the amount of $250,000 for interest bearing accounts and
noninterest bearing accounts. The District’s investment policy complies with the
provisions of state laws and requires collateralization on repurchase agreements,
time certificates of deposit and deposits with banking institutions that are not
covered by the FDIC, and the collateralization level shall be 103% and shall be
based on the fair value of the pledged collateral.
Investments
The Secretary-Treasurer is authorized to invest, with the approval of the Board,
funds not immediately needed for the purpose to which said funds are applicable,
in the same manner as the state treasurer may invest funds of the State of
Missouri pursuant to Section 15, Article IV of the Constitution of Missouri, as
amended from time to time. The District’s investment policy conforms to the
investment policy guidelines for the State of Missouri. The District’s investment
policy authorizes the District to invest in the following instruments: U.S. Treasury
obligations, certificates of deposit, obligations of any agency or instrumentality of
the U.S., repurchase agreements, bankers’ acceptances, and commercial paper, all
according to terms specified in the policy. The District also has investments in
money market mutual funds that hold securities approved by the District’s
investment policy. At June 30, 2023, and June 30, 2022, all of the District’s
investments were in compliance with the District’s investment policy and Charter.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 37
A summary of deposits and investments as of June 30, 2023, and June 30, 2022 is
as follows:
A reconciliation to the Statements of Net Position is as follows:
Investment Type Cost Fair Value Cost Fair Value
Deposits (8,339,089)$ (8,339,089)$ 63,887,919$ 63,887,919$
Money Market Mutual Funds 23,107,546 23,107,546 21,617,850 21,617,850
U.S. Treasury and
Agency Obligations 542,728,000 522,995,614 501,598,900 489,050,072
Commercial Paper 93,925,000 93,148,355 173,000,000 172,251,461
Total 651,421,457$ 630,912,426$ 760,104,669$ 746,807,302$
2023 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 38
Interest Rate Risk
As of June 30, 2023, and 2022, the District had the following investments and
maturities:
In accordance with the District’s investment policy, the District will minimize the
risk that the fair value of debt securities in the portfolio will fall due to increases
in general interest rates 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 primarily in short-term securities;
3. Complying with state law which limits the maximum 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 short-term investments,
the District also categorizes a sizeable amount as long-term under the categories
discussed in Note 1, Summary of Significant Accounting Policies. The District is
allowed to purchase long-term 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 is called, the District reflects an immediate
reclassification from long-term investment to cash.
Weighted Weighted
Average Average
Maturity Maturity
Investment Type Fair Value (Years) Fair Value (Years)
U.S. Treasury Obligations 288,268,150$ 1.50 306,177,567$ 1.66
U.S. Agency Obligations 234,727,464 1.34 182,872,505 1.45
Commercial Paper 93,148,355 0.06 172,251,461 0.23
Total 616,143,969$ 1.22 661,301,533$ 1.23
2023 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 39
Custodial/Credit Risk
The District will minimize credit risk for investments, the risk of loss due to failure
of the security issuer or backer, by:
1.Prequalifying 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
these investment types to those investments with the top rating issued by
Nationally Recognized Statistical Rating Organizations. As of June 30, 2023, and
June 30, 2022, the District’s investments in commercial paper were rated A-1 by
Standard & Poor’s (“S&P”), F-1 by Fitch and P-1 by Moody’s Investors Service
(“Moody’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+, by Fitch AAA and Moody’s Aaa. Money market investments are rated as
AAAm and Aaa-mf by S&P and Moody’s, respectively.
Concentration of Credit Risk
The District’s investment policy places no limit on the amount the District may
invest in any one issuer with respect to collateralized time and demand deposits.
U.S. Treasury obligations are not limited. U.S. Agency obligations and
government-sponsored enterprises are limited to 60% 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 30% of the portfolio, and commercial paper
and bankers’ acceptances are limited to 25% each, with no more than 5% of the
total portfolio invested in any one issuer. The following table lists investments in
issuers that represent 5% or more of total investments at both June 30, 2023, and
June 30, 2022:
Issuer 2023 2022
Treasury Notes 46.8 46.3
Federal Home Loan Bank 14.9 8.3
Federal Agriculture Mortgage Association 12.0 5.9
Percent Of
Total Investments
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 40
Fair Value Measurement and Application
The District categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles pursuant to
GASB Statement No. 72, Fair Value Measurement and Application. The hierarchy
is based on the valuation inputs used to measure the fair value of the asset. Level
1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
The District has the following recurring fair value measurements as of June 30,
2023, and June 30, 2022:
Money Market Mutual Funds of $23.1 million and $21.6 million,
respectively, are valued using a market approach to measuring fair value
prices that considers relevant information generated by market transactions
involving identical or similar assets or groups of assets. (Level 2 inputs)
U.S. Treasury and Agency Obligations of $523.0 million and $489.0 million,
respectively, are valued using a market approach to measuring fair value
prices that considers relevant information generated by market transactions
involving identical or similar assets or groups of assets. (Level 2 inputs)
Commercial Paper of $93.1 million and $172.3 million, respectively, is
valued using a market approach to measuring fair value prices that
considers relevant information generated by market transactions involving
identical or similar assets or group of assets. (Level 2 inputs)
See Notes 9 and 10 for information regarding the cash and investments held by
the Fiduciary Pension Trust Fund.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 41
3. Notes Receivable
The District has a note receivable with Missouri American Water Company
(“MOAM”) for its portion of the capital costs related to the Lower Meramec
Wastewater Treatment Plant. The original loan established in fiscal year 2008
bears interest at 4.35%, while the two loans added during fiscal year 2013 bear
interest at 4.50% and 3.52%. The current portion of this note is included in the
unrestricted other receivables line on the Statements of Net Position. The note
receivable will mature in fiscal year 2033.
At June 30, 2023, future payments are as follows:
At June 30, 2022, future payments were as follows:
2024 1,443,370$
2025 1,154,696
2026 1,154,696
2027 1,154,696
2028 1,154,696
2029-2032 4,618,783
2033 563,799
11,244,735
Less: Amount representing interest 2,107,620
Total Notes Receivable 9,137,115$
Classification in Statement of Net Position:
Current - Other receivables 970,211$
Non-current - Notes receivable 8,166,905
Total Notes Receivable 9,137,115$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 42
4. Capital Assets
The following is a summary of capital assets changes for the fiscal years ended
June 30, 2023 and 2022:
Balance
June 30, 2022 Balance
As restated June 30, 2023
Capital assets not being depreciated:
Land 82,205,848 1,598,294 (241,181) 83,562,961
Construction in progress 1,178,890,914 247,425,414 (43,551,897) 1,382,764,431
Total capital assets not being depreciated 1,261,096,762 249,023,708 (43,793,078) 1,466,327,392
Capital assets being depreciated/amortized:
Treatment and disposal plant and equipment 1,332,498,020 2,368,958 (657,314) 1,334,209,664
Collection and pumping plant 3,329,457,199 104,986,846 (2,010,275) 3,432,433,770
General plant and equipment 109,585,527 7,042,971 (2,198,044) 114,430,454
Lease right of use asset 1,548,555 70,131 — 1,618,686
Subscription-based information technology agreements 26,701,559 15,611,909 (906,227) 41,407,241
Total capital assets being depreciated/amortized 4,799,790,860 130,080,815 (5,771,860) 4,924,099,815
Less: Accumulated depreciation/amortization:
Treatment and disposal plant and equipment (724,057,822) (34,511,728) 443,258 (758,126,292)
Collection and pumping plant (981,722,558) (55,431,747) 810,270 (1,036,344,035)
General plant and equipment (82,627,066) (6,344,090) 2,109,239 (86,861,917)
Lease amortization (300,309) (277,796) — (578,105)
Subscription-based information technology agreements (5,872,487) (6,950,884) 906,227 (11,917,144)
Total accumulated depreciation and amortization (1,794,580,243) (103,516,244) 4,268,994 (1,893,827,493)
Total capital assets being depreciated, net 3,005,210,618 26,564,571 (1,502,867) 3,030,272,322
Total Capital Assets 4,266,307,380 275,588,279 (45,295,944) 4,496,599,714
DeletionsAdditions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 43
A restatement of assets for FY21 is reflective of the GASB 87 implementation and
a restatement of assets for FY22 is reflective of the GASB 96 implementation.
Balance Balance
June 30, 2021 June 30, 2022
As restated as restated
Capital assets not being depreciated:
Land 79,569,310$ 2,636,538$ —$ 82,205,848$
Construction in progress 1,194,033,441 243,968,862 (259,111,389) 1,178,890,914
Total capital assets not being depreciated 1,273,602,751 246,605,400 (259,111,389) 1,261,096,762
Capital assets being depreciated/amortized:
Treatment and disposal plant and equipment 1,303,648,712 29,236,364 (387,056) 1,332,498,020
Collection and pumping plant 3,093,068,764 238,812,299 (2,423,864) 3,329,457,199
General plant and equipment 103,516,644 7,536,642 (1,467,759) 109,585,527
Lease right of use asset 1,032,853 515,702 — 1,548,555
Subscription-based information technology agreements — 26,701,559 — 26,701,559
Total capital assets being depreciated/amortized 4,501,266,973 302,802,566 (4,278,679) 4,799,790,860
Less: Accumulated depreciation/amortization:
Treatment and disposal plant and equipment (686,410,998) (37,884,475) 237,651 (724,057,822)
Collection and pumping plant (929,741,932) (52,881,431) 900,805 (981,722,558)
General plant and equipment (79,341,606) (4,728,173) 1,442,713 (82,627,066)
Lease amortization (142,204) (158,105) — (300,309)
Subscription-based information technology agreements — (5,872,487) — (5,872,487)
Total accumulated depreciation and amortization (1,695,636,740) (101,524,671) 2,581,169 (1,794,580,242)
Total capital assets being depreciated, net 2,805,630,233 201,277,895 (1,697,510) 3,005,210,618
Total Capital Assets 4,079,232,984$ 447,883,295$ (260,808,899)$ 4,266,307,380$
DeletionsAdditions
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 44
5. Leases and Subscription-Based Information Technology
Arrangements
MSD, as a lease lessee, has entered into lease agreements for fire hydrant keys &
reducers, order control chemical treatment equipment, printing and imaging
equipment, antenna, and equipment space. For the fiscal years ending June 30,
2023, and 2022, the District recognized lease right of use assets in the amounts of
$1,040,581 and $1,248,246, net of accumulated amortization, respectively. During
fiscal years 2023 and 2022, the District recorded amortization expense of $277,796
and $158,105, respectively.
The future principal and interest lease payments as of June 30, 2023, are as
follows:
MSD, as a lease lessor, has entered into lease agreements with four companies
involving land usage and one company for building usage. The total amount of
inflows of resources, including lease revenue, interest revenue, and other lease
related inflows, recognized during the fiscal years 2023, and 2022 are $381,533 and
$383,630, respectively.
Fiscal Year Principal Interest Total
2024 256,713$ 14,291$ 271,004$
2025 261,522 10,019 271,541
2026 259,555 5,663 265,218
2027 199,736 1,812 201,548
2028 49,853 285 50,138
2029-2030 22,413 62 22,475
1,049,792$ 32,132$ 1,081,924$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 45
As of June 30, 2023, the principal and interest requirements to maturity for the
lease receivable are as follows:
MSD, as a SBITA lessee, has entered various subscription-based information
technology arrangements (SBITAs). For fiscal years ending June 30, 2023, and
2022, the District recognized subscription assets in the amounts of $29,490,097
and $20,829,072, net of accumulated amortization, respectively. During fiscal
years 2023 and 2022, the District recorded amortization expense of $6,950,884 and
$5,872,488, respectively.
The future principal and interest SBITAs payments as of June 30, 2023, are as
follows:
Fiscal Year Principal Interest Total
2024 295,945$ 32,001$ 327,946$
2025 321,965 29,444 351,409
2026 150,570 27,158 177,728
2027 163,173 25,290 188,463
2028 168,721 23,267 191,988
2029-2033 916,482 84,516 1,000,998
2034-2038 724,437 28,495 752,932
2039-2043 157,372 11,641 169,013
2044-2048 171,788 7,764 179,552
2049-2053 203,150 3,334 206,484
2054 35,101 76 35,177
3,308,704$ 272,986$ 3,581,690$
Fiscal Year Principal Interest Total
2024 4,882,972$ 166,457$ 5,049,429$
2025 3,544,408 125,277 3,669,685
2026 3,236,576 92,299 3,328,875
2027 3,046,284 62,742 3,109,026
2028 1,657,646 36,000 1,693,646
2029-2031 1,254,092 42,444 1,296,536
17,621,978$ 525,219$ 18,147,197$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 46
6. Property Tax
On or before October 1 of each year, the District levies ad valorem taxes on all
taxable tangible property, real and personal, within its boundaries based on
assessed valuations established by the City of St. Louis and St. Louis County
Assessors. Taxes levied are used for stormwater operations, maintenance, and
construction. Taxes are recorded as non-operating revenues and recognized, net of
estimated refunds and estimated uncollectible amounts, in the period for which
the taxes are levied. Property tax bills are typically mailed in October. They
become delinquent and represent a lien on the related property if not paid by
December 31. All 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 2023 and 2022, the District recorded revenue from property taxes
in the amount of $48,729,488 and $44,479,669, respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 47
7. Long-Term Liabilities
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2023:
Balance Balance
June 30, 2022 June 30, Current
as restated Additions Retirements 2023 Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds: $ 1,272,650,000 — $ (63,750,000) $ 1,208,900,000 $ 32,500,000
Water Infrastructure Finance and
Innovation Act (WIFIA) Senior Bonds: 261,480 — — 261,480 —
Wastewater System Senior Refunding
Revenue Bonds, Direct Placement: 45,465,000 23,040,000 — 68,505,000 —
Water Pollution Control and Drinking Water Subordinate
Revenue Bonds (State Revolving Funds Program): 73,505,000 — (15,480,000) 58,025,000 15,885,000
Missouri Department of Natural Resources: 347,168,086 22,307,249 (18,879,903) 350,595,432 21,537,300
1,739,049,566$ 45,347,249$ (98,109,903)$ 1,686,286,912$ 69,922,300$
Add:
Unamortized premium, net of discount 162,402,483
Total Bonds and Notes Payable 1,848,689,395$
Current Portion of Bonds and Notes Payable 69,922,300$
Non-Current Bonds and Notes Payable 1,778,767,095
Total Bonds and Notes Payable 1,848,689,395$
Net Pension Liability 33,871,056$ 63,393,277$ —$ 97,264,333$ —$
Total OPEB Liability 26,793,582$ (684,816)$ —$ 26,108,766$ —$
Lease and Subscription Liabilities
1,245,517$ 56,670$ (252,394)$ 1,049,793$ 256,713$
Subscription-based information technology
arrangements 20,238,587 3,829,929 (6,446,538) 17,621,978$ 4,882,972
Total Lease and Subscription Liabilities 21,484,105$ 3,886,599$ (6,698,932)$ 18,671,770$ 5,139,685$
Current Portion of Lease and Subscription Liabilities 5,139,685$
Non-Current Lease and Subscription Liabilities 13,532,085
Total Lease and Subscription Liabilities 18,671,770$
Deposits and Accrued Expenses
750,948$ —$ (37,507)$ 713,441$ —$
Compensated absences 9,582,579 753,156 (804,500) 9,531,235 953,123
Total Deposits and Accrued Expenses 10,333,527$ 753,156$ (842,007)$ 10,244,676$ 953,123$
Current Portion (Compensated absences) in Current Deposits and Accrued Expenses 953,123$
Non-Current Deposits and Accrued Expenses 9,291,553
Total Deposits and Accrued Expenses 10,244,676$
Landfill closure and postclosure costs
Lease
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 48
The following is a summary of changes in the District’s long-term liabilities for the
year ended June 30, 2022:
Balance Balance
June 30,June 30, 2022 Current
2021 Additions Retirements as restated Portion
Bonds and Notes Payable:
Wastewater System Senior Revenue Bonds: $ 1,256,555,000 $ 109,070,000 $ (92,975,000) $ 1,272,650,000 $ 31,975,000
Water Infrastructure Finance and
Innovation Act (WIFIA) Senior Bonds:261,480 — — 261,480 —
Wastewater System Senior Refunding
Revenue Bonds, Direct Placement:5,620,000 39,845,000 — 45,465,000 —
Water Pollution Control and Drinking Water Subordinate
Revenue Bonds (State Revolving Funds Program):88,780,000 — (15,275,000) 73,505,000 15,480,000
Missouri Department of Natural Resources:315,849,539 48,380,847 (17,062,300) 347,168,086 18,882,500
1,667,066,019$ 197,295,847$ (125,312,300)$ 1,739,049,566 66,337,500$
Add:
Unamortized premium, net of discount 166,472,148
Total Bonds and Notes Payable 1,905,521,714$
Current Portion of Bonds and Notes Payable 66,337,500$
Non-Current Bonds and Notes Payable 1,839,184,214
Total Bonds and Notes Payable 1,905,521,714$
Net Pension Liability 29,495,178$ 4,375,878$ —$ 33,871,056$ —$
Total OPEB Liability 24,920,628$ 1,872,954$ —$ 26,793,582$ —$
Lease and Subscription Liabilities
896,173$ 497,017$ (147,673)$ 1,245,517$ 238,285$
Subscription-based information technology
arrangements —$ 26,630,932 (6,392,345) 20,238,587 6,126,574
Total Lease and Subscription Liabilities 896,173$ 27,127,949$ (6,540,018)$ 21,484,105$ 6,364,859$
Current Portion of Lease and Subscription Liabilities 6,364,859$
Non-Current Lease and Subscription Liabilities 15,119,246
Total Lease and Subscription Liabilities 21,484,105$
Deposits and Accrued Expenses
686,968$ 63,980$ —$ 750,948$ —$
Compensated absences 9,461,777 792,714 (671,912) 9,582,579 958,259
Total Deposits and Accrued Expenses 10,148,745$ 856,694$ (671,912)$ 10,333,527$ 958,259$
Current Portion (Compensated absences) in Current Deposits and Accrued Expenses 958,259$
Non-Current Deposits and Accrued Expenses 9,375,268
Total Deposits and Accrued Expenses 10,333,527$
Landfill closure and postclosure costs
Lease
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 49
Voter Approved Bond Authorizations
The District has received voter authorization for revenue bonds on the dates and
in the amounts presented below. These funds were sought to enable the District to
comply with federal and state clean water requirements. Only new bond issuances
count against these authorizations while none of the refunding issuances count
against them. From the total voter authorization of $3,120,000,000, $628,219,393
has not been issued as of June 30, 2023.
Wastewater System Senior Refunding Revenue Bonds Payable, Direct
Placement
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $23,040,000 of Wastewater System Senior Refunding Revenue
Bonds Series 2023A (“Series 2023A”) which closed in May 2023. These 2023A
bonds were issued to fully refund the Series 2013B bonds maturing in fiscal years
2030 through 2039 totaling $31,775,000. Proceeds of $32,476,938, (including a
premium of $5,466,911 and $3,990,027 in excess debt service reserves contributed
by the District) were used to refund the remaining outstanding balance of the
2013B bonds and the $701,938 interest accrued thereon. The related liability for
the 2013B bonds refunded was removed from the District’s financial statements in
fiscal 2023.
This direct placement refunding decreased total debt service payments by
$12,365,938, resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $6,069,392. These Series 2023A senior direct placement bonds have
interest rates of $5.00% and are payable in semiannual installments at varying
amounts through May 1, 2039.
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $39,845,000 of Wastewater System Senior Refunding Revenue
Bonds Series 2022A (“Series 2022A”) which closed in May 2022. These Series
Date of Authorization
Voter Authorized
Amount
February 2004 500,000,000$
August 2008 275,000,000
June 2012 945,000,000
April 2016 900,000,000
April 2021 500,000,000
Total 3,120,000,000$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 50
2022A bonds were issued to partially refund the Series 2012A bonds maturing in
fiscal years 2033 through 2039 totaling $31,345,000 and partially refund the Series
2012B bonds maturing in fiscal years 2025 through 2027 totaling $23,500,000.
Proceeds of $48,087,226, including a premium of $8,242,226 and $6,771,267 in
excess debt service reserves contributed by the District, were used to partially
defease Series 2012A and 2012B and the related balances for those bonds were
reduced from the District’s financial statements in fiscal year 2022.
This direct placement refunding decreased total debt service payments by
$17,896,368, resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $8,201,500. These Series 2022A senior direct placement bonds have
interest rates of 5.00% and are payable in semiannual installments at varying
amounts through May 1, 2039.
In March 2020, the District entered into a forward-delivery direct purchase
agreement to issue $5,620,000 of Wastewater System Senior Refunding Revenue
Bonds Series 2021C (“Series 2021C”) which closed in May 2021 to coincide with
the call date of the outstanding Series 2011B bonds. These Series 2021C bonds,
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 a premium of $1,751,752 and $4,025,780 in excess debt
service reserves the District contributed, were used to refund all the remaining
outstanding Series 2011B bonds and the $2,532 interest accrued thereon. The
related liability for the Series 2011B bonds refunded were removed from the
District’s financial statements in fiscal 2021.
This direct placement refunding decreased total debt service payments by
$7,527,111, resulting in an economic gain (difference between the present values
of the debt service requirements on the old and new debt adjusted for the additional
cash paid) of $2,553,241. These Series 2021C senior direct placement bonds have
interest rates of 5.00% and are payable in semiannual installments at varying
amounts through May 1, 2032.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 51
Principal and Interest Requirements on Senior Refunding Revenue
Bonds Payable, Direct Placement
The annual principal and interest requirements to maturity on direct placement
senior refunding revenue bonds payable outstanding as of June 30, 2023, are as
follows:
Wastewater System Revenue Bonds Payable
In June 2022, the District issued $109,070,000 of Wastewater System Senior
Refunding Revenue Bonds Series 2022B (“Series 2022B”). These bonds were issued
for two purposes: $9,070,000 to partially refund the Series 2012B bonds maturing
in fiscal years 2023 through 2024 totaling $9,310,000 and $100,000,000 was issued
pursuant to the April 2016 authorization for the purpose of constructing, repairing,
replacing, and equipping new and existing District wastewater facilities. As of
June 30, 2023, all the funds from this issuance have been expended. A premium of
$13,362,572 was received on the $100,000,000 portion of the Series 2022B. These
Series 2022B senior bonds have an interest rate of 5.0% and are payable in
semiannual installments at varying amounts through June 1, 2052.
The Series 2022B refunding net proceeds of $9,382,256 (including a premium of
$371,595 less payments of $20,617 in underwriter fees and $35,584 in issuance
costs) 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 Series 2012B. The sum of $9,382,256
deposited into escrow and the earnings on the U.S. government securities refunded
$9,070,000 in principal payments for call dates May 1, 2023, and May 1, 2024 for
Series 2012B and the interest thereon. This leaves a principal payment of $940,000
due on May 1, 2031. The related balance for Series 2012B was reduced from the
District’s financial statements in fiscal year 2022. This refunding decreased total
Years ending June 30, Principal Interest Total
2024 —$ 3,425,250$ 3,425,250$
2025 3,360,000 3,425,250 6,785,250
2026 6,915,000 3,257,250 10,172,250
2027 7,110,000 2,911,500 10,021,500
2028 — 2,556,000 2,556,000
2029-2033 16,245,000 11,697,000 27,942,000
2034-2038 18,795,000 6,479,000 25,274,000
2039-2043 16,080,000 804,000 16,884,000
Total 68,505,000$ 34,555,250$ 103,060,250$
Wastewater System Senior Refunding Revenue Bonds Payable
Direct Placement
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 52
debt service payments by $303,860 resulting in an economic gain (difference
between the present values of the debt service requirements on the old and new
debt adjusted for the additional cash paid) of $294,263. Interest payments of
$72,256 and principal payments of $9,310,000 were made from the escrow account
in fiscal year 2022.
In December 2020, the District issued $120,000,000 of Wastewater System Senior
Revenue Bonds Series 2020B (“Series 2020B”). These 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.
As of June 30, 2023, all funds from this issuance have been expended. A premium
of $37,194,201 was received on the issuance of Series 2020B. These Series 2020B
senior bonds have an interest rate of 5.0% and are payable in semiannual
installments at varying amounts through June 1, 2050.
In December 2019, the District issued $52,130,000 of Wastewater System Senior
Revenue Bonds Series 2019B (“Series 2019B”). These 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.
All funds from this issuance have been expended. A premium of $12,059,977 was
received on the issuance of Series 2019B. These Series 2019B senior bonds have
an interest rate of 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2049.
In December 2019, the District issued $276,260,000 of Taxable Wastewater System
Senior Refunding Revenue Bonds Series 2019C (“Series 2019C”). These bonds were
issued to partially advance refund the Series 2012A bonds maturing in fiscal years
2040 through 2042 totaling $103,120,000, the Series 2012B bonds maturing in
fiscal years 2028 through 2034 totaling $83,925,000 (excluding $940,000 of the
May 2031 principal payment due), the Series 2013B bonds maturing in fiscal years
2031 and 2032, 2036 through 2038, and 2040 through 2043 totaling $67,985,000
and the Series 2015B bonds maturing in fiscal years 2044 through 2045 totaling
$18,400,000.
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 securities were deposited in an
irrevocable trust with an escrow agent to provide for the future debt service
payments defined above on the Series 2012A, Series 2012B, Series 2013B and
Series 2015B bonds. The sum of the $300,519,360 deposited into escrow and the
earnings on the U.S. government securities will fund the $273,430,000 advanced
refunded principal payments on their call dates (May 1, 2022, for Series 2012A and
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 53
Series 2012B, May 1, 2023 for Series 2013B and May 1, 2025 for Series 2015B) and
the interest thereon. Interest payments of $13,671,500 and principal payments of
$187,045,000 were made from the escrow account in fiscal year 2022. All
$273,430,000 debt defeased in substance to be paid from the escrow account with
an outstanding amount of $86,385,000 as of June 30, 2022. As a result of placing
the cash with an escrow agent in a trust, Series 2012A, Series 2012B, Series 2013B,
and Series 2015B bonds were partially defeased 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 by $98,737,402,
resulting in an economic gain (difference between the present values of the debt
service requirements on the old and new debt adjusted for the additional cash paid)
of $42,691,317. These Series 2019C senior bonds have interest rates ranging from
1.824% to 3.259% and are payable in semiannual installments at varying amounts
through May 1, 2045.
In December 2017, the District issued $316,175,000 of Wastewater System Senior
Revenue Bonds Series 2017A (“Series 2017A”). These bonds were issued for two
purposes: $116,175,000 was issued to partially advance refund the Series 2011B
bonds maturing in fiscal years 2022 through 2029 totaling $23,345,000, the Series
2012A bonds maturing in fiscal years 2023 through 2032 totaling $50,060,000
(excludes $240,000 of the May 2030 principal payment due), the Series 2013B
bonds maturing in fiscal years 2024 through 2029 totaling $26,385,000 and the
Series 2015B bonds maturing in fiscal years 2026 through 2029 totaling
$25,970,000. The remaining $200,000,000 was issued for the purpose of
constructing, repairing, replacing, and equipping new and existing District
wastewater facilities. All funds from this issuance have been expended.
Approximately $47,500,000 was issued pursuant to the June 2012 authorization
and $152,500,000 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 2017A. These
Series 2017A senior bonds have interest rates ranging from 2.0% to 5.0% and are
payable in semiannual installments at varying amounts through May 1, 2047.
The Series 2017A refunding net proceeds of $141,343,662 (including a premium of
$25,967,878 and additional proceeds of $1,220 and after payments of $428,483 in
underwriting fees and $371,953 in issuance costs) 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 Series
2011B, Series 2012A, Series 2013B, and Series 2015B bonds. The sum of the
$142,277,987 deposited into escrow and the earnings on the U.S. government
securities will fund the $125,760,000 advanced refunded principal payments on
their call dates (May 1, 2021 for Series 2011B, May 1, 2022 for Series 2012A, May
1, 2023 for Series 2013B, and May 1, 2025 for Series 2015B) and the interest
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 54
thereon. Interest payments of $5,058,775 and principal payments of $50,060,000
were made from the escrow account in fiscal year 2022. Of the $125,760,000 debt
defeased in substance to be paid from the escrow account, $52,355,000 remains
outstanding as of June 30, 2022. As a result of placing the cash with an escrow
agent in a trust, Series 2011B, Series 2012A, Series 2013B, and Series 2015B
bonds were partially defeased and the related liability for those bonds were
removed from the District’s financial statements in fiscal 2018. This advance
refunding decreased total debt service payments by $12,623,385, resulting in an
economic gain (difference between the present values of the debt service
requirements on the old and new debt adjusted for the additional cash paid) of
$9,481,147.
In December 2016, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2016C (“Series 2016C”). These bonds were issued pursuant
to the June 2012 authorization: in this case for the purpose of construction,
repairing, replacing, and equipping new and existing District wastewater facilities.
All funds from this issuance have been expended. A premium of $17,678,054 was
received on the issuance of Series 2016C. These Series 2016C senior 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 2015, the District issued $223,855,000 of Wastewater System Senior
Revenue Bonds Series 2015B (“Series 2015B”). These bonds were issued for two
purposes: $73,855,000 was issued to advance refund the Series 2006C and Series
2008A bonds and $150,000,000 was issued pursuant to the June 2012
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 2015B senior bonds have interest rates
ranging from 3.0% to 5.0% and are payable in semiannual installments at varying
amounts through May 1, 2045; however, in December 2017, there was an advance
refunding of the non-refunding Series 2015B bonds for the fiscal years 2026
through 2029 totaling $25,970,000. See the explanation for Series 2017A above for
further information. In December 2019, there was a taxable advance refunding of
the Series 2015B bonds for the fiscal years 2044 through 2045 totaling
$18,400,000. See the explanation for Series 2019C above for further information.
As a result of the advance refundings, the Series 2015B bonds are considered
partially defeased.
The Series 2015B 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 in
issuance costs) and the $8,945,557 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 all future
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 55
debt service payments on the Series 2006C and Series 2008A bonds. All principal
and interest payments on the advance refunded Series 2006C and Series 2008A
bonds have been paid from escrow and no amounts remain outstanding on these
bonds. As a result of placing the cash with an escrow agent in a trust, Series 2006C
and Series 2008A bonds were defeased and the liability for those bonds were
removed from the District’s financial statements in fiscal 2016. The original
$60,000,000 Series 2006C bonds were issued pursuant to the February 2004
authorization and the original $30,000,000 Series 2008A bonds were issued
pursuant to the August 2008 authorization. This refunding decreased total debt
service payments by $33,032,176, resulting in an economic gain (difference
between the present values of the debt service requirements on the old and new
debt adjusted for additional cash paid) of $14,544,866.
In December 2013, the District issued $150,000,000 of Wastewater System Senior
Revenue Bonds Series 2013B (“Series 2013B”). These bonds were issued pursuant
to the June 2012 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 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 2013B bonds for the fiscal years
2024 through 2029 totaling $26,385,000. As a result of this advance refunding,
Series 2013B bonds are considered partially defeased. See the explanation for
Series 2017A above for further information. In December 2019, there was a taxable
advance refunding of the Series 2013B bonds for nine years within a span of 12
years from 2031 through 2043 totaling $67,985,000. As a result of this advance
refunding, Series 2013B bonds are considered partially defeased. See the
explanation for Series 2019C above for further information. In March 2020, there
was a forward-delivery direct purchase agreement issued to fully refund the Series
2013B bonds maturing in fiscal years 2030 through 2039 totaling $31,775,000. See
the explanation for Series 2023A above for further information.
In November 2012, the District issued $141,730,000 of Wastewater System Senior
Refunding Bonds Series 2012B (“Series 2012B”). These bonds were issued to
advance refund the Series 2004A bonds maturing in fiscal years 2015 and
thereafter. These Series 2012B senior bonds have interest rates ranging from 1.3%
to 5.0% and are payable in semiannual installments at varying amounts through
May 1, 2034. The Series 2012B bond’s net proceeds of $169,991,298 (including a
premium of $29,613,138 and after payments of $761,593 in underwriting fees and
$590,247 in issuance costs) were used to purchase U.S. government securities.
These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the bonds. All principal and interest
payments on the advance refunded Series 2004A bonds have been paid from escrow
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 56
and no amounts remain outstanding on these bonds. As a result of placing the cash
with an escrow agent in a trust, Series 2004A bonds were partially defeased and
the liability for those bonds related to a date after May 1, 2014, were removed from
the District’s financial statements in fiscal 2013. The original $175,000,000 Series
2004A bonds were issued pursuant to the February 2004 authorization. This
refunding decreased total debt service payments by $28,601,189, resulting in an
economic gain (difference between the present values of the debt service
requirements on the old and new debt) of $22,439,375. In December 2019, there
was a taxable advance refunding of the Series 2012B bonds for the fiscal years
2028 through 2034 totaling $83,925,000 (excludes $940,000 of the May 2031
principal payment due). See the explanation for Series 2019C above for further
information. In May 2022, there was direct placement senior refunding revenue
bonds issued to refund fiscal years 2025-2027 totaling $23,500,000. See the
explanation for Series 2022A above for further information. As a result of the
advance refunding, and the direct placement refunding, Series 2012B bonds are
considered partially refunded.
In August 2012, the District issued $225,000,000 of Wastewater System Senior
Revenue Bonds Series 2012A (“Series 2012A”). These bonds were issued pursuant
to the June 2012 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 2012A senior bonds
have interest rates ranging from 2.5% to 5.3% and are payable in semiannual
installments at varying amounts through May 1, 2042. In December 2017, there
was an advance refunding of the Series 2012A bonds for the fiscal years 2023
through 2032 totaling $50,060,000 (excludes $240,000 of the May 2030 principal
payment due). See the explanation for Series 2017A above for further information.
In December 2019, there was a taxable advance refunding of the Series 2012A
bonds for the fiscal years 2040 through 2042 totaling $103,120,000. In May 2022,
there was direct placement senior refunding revenue bonds issued to refund fiscal
years 2033-2039 totaling $31,345,000. See the explanation for Series 2022A above
for further information. As a result of the advance refundings, and direct
placement refunding Series 2012A bonds are considered partially refunded.
In January 2010, the District issued $85,000,000 of Taxable Wastewater System
Senior Revenue Bonds (Build America Bonds – Direct Pay) Series 2010B (“Series
2010B”). 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 2010B senior bonds have an interest rate of 5.9% and are
payable in semiannual installments at varying amounts through May 1, 2039. As
Build America Bonds under The American Recovery and Reinvestment Act
(“ARRA”) of 2009, the District receives a subsidy payment from the Federal
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 57
government equal to a percentage of the interest paid. In fiscal years 2013 and
prior the rate was 35%. Beginning with refund payments processed on March 1,
2013, and annually beginning on October 1, 2013, the IRS has adjusted this rate
as part of the sequestration. In fiscal year 2020 the subsidy percentage was 32.9%
while for 2021 the subsidy percentage was 33.0%. In fiscal year 2023, the subsidy
percentage was 33.1% and is expected to be 33.1% in fiscal year 2024.
The revenue bonds do not constitute a legal debt or liability for the District, the
State of Missouri, or for any political subdivision thereof and do not constitute
indebtedness within the meaning of any constitutional 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 provisions of the bond indentures, the District
covenants to establish rates for the services of the Wastewater System sufficient
to fund operations, maintain reserves, and provide revenues to apply principal and
interest on these bonds.
The issuance of the revenue bonds 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 Bonds (State Revolving Funds Programs)
Series 2008A/B (“Series 2008A/B”). The Series 2008A/B bonds provided funds to
issue loans to 14 Missouri political subdivisions that used the funds to finance
water pollution control and drinking water projects. A portion of the proceeds of
the Series 2008A/B bonds issued by the Authority were used to purchase
subordinate Participant Revenue Bonds (“Participant Bonds”) authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $40,000,000, 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 2008A/B Participant Bonds
originally had interest rates ranging from 4.0% to 5.7% but effective April 1, 2021,
the District’s interest rate on all outstanding principal was modified to 0.83% but
are still payable in semiannual installments at varying amounts through January
1, 2029
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 58
In November 2006, the Authority authorized and issued $22,105,000 of State
Revolving Funds Programs Series 2006B (“Series 2006B”). The Series 2006B bonds
provided funds to issue loans to seven Missouri political subdivisions that used the
funds to finance water pollution control and drinking water projects. A portion of
the proceeds of the Series 2006B 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. All funds from this issuance have been
expended. The District’s Series 2006B Participant Bonds have interest rates
ranging from 4.0% to 5.0% and are payable in semiannual installments at varying
amounts through July 1, 2027.
In May 2006, the Authority authorized and issued $87,505,000 of State Revolving
Funds Programs Series 2006A (“Series 2006A”). The Series 2006A bonds provided
funds to issue loans to 13 Missouri political subdivisions that used the funds to
finance water pollution control and drinking water projects. A portion of the
proceeds of the Series 2006A bonds issued by the Authority were used to purchase
subordinate Participant Bonds authorized and issued by the District from the
February 2004 authorization in the aggregate principal amount of $42,715,000,
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 2006A Participant Bonds have interest rates
ranging from 3.5% to 4.5% and are payable in semiannual installments at varying
amounts through July 1, 2026.
In May 2005, the Authority authorized and issued $53,060,000 of State Revolving
Funds Programs Series 2005A (“Series 2005A”). The Series 2005A bonds provided
funds to issue loans to 10 Missouri political subdivisions and one Missouri non-
profit corporation that were used to finance water pollution control and drinking
water projects. A portion of the proceeds of the Series 2005A bonds issued by the
Authority were used to purchase subordinate Participant Bonds authorized and
issued by the District from the February 2004 authorization in the aggregate
principal amount of $6,800,000, 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 Participant Bonds
have interest rates ranging from 3.0% to 5.0% and are payable in semiannual
installments at varying amounts through July 1, 2026.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 59
In May 2004, the Authority authorized and issued $179,780,000 of State Revolving
Funds Programs Series 2004B (“Series 2004B”). The Series 2004B bonds provided
funds to issue loans to seven Missouri political subdivisions that were used to
finance water pollution control projects. A portion of the proceeds of the Series
2004B bonds issued by the Authority were used to purchase subordinate
Participant Bonds authorized and issued by the District from the February 2004
authorization in the aggregate principal amount of $161,280,000, the proceeds of
which were used to finance the District’s three water pollution control construction
projects outlined in the agreement. All funds from this issuance have been
expended. The District’s Series 2004B Participant Bonds have interest rates
ranging from 2.0% to 5.3% and are payable in semiannual installments at varying
amounts through January 1, 2027.
The Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds do not constitute a
legal debt or liability for the District, the State of Missouri, or for any political
subdivision thereof and do not constitute indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction. The issuance of the Series
2004B, 2005A, 2006A, 2006B, and 2008A/B bonds and the Series 2009A, 2010A,
2010C, 2011A, 2013A, 2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and
2021B direct loans (pages 61-70) do 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.
In connection with the District’s issuance of the Participant Bonds, which were
purchased with the proceeds of the Series 2004B, 2005A, 2006A, 2006B, and
2008A/B bonds, the District participates in the State Revolving Loan Program
established by the Missouri Department of Natural Resources (“DNR”). Monies
from federal capitalization grants and state matching funds are used to fund a
bond reserve account for the participants.
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account and deposited in a
bond reserve account, in the District’s name, an additional 60% of the expenditure
amount for the Series 2004B bonds and 70% for the Series 2005A, 2006A, and
2006B bonds. For the Series 2008A/B bonds, 70% of the entire anticipated
borrowed amount was deposited into this bond reserve account at the beginning of
the loan versus as the expenditures were reimbursed. Interest earned from this
bond reserve account can be used by the District to fund interest payments on the
bonds.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 60
On the date of each payment of the principal amount of the District’s Participant
Bonds, the trustee transfers from this bond reserve account to the master trustee
account an amount equal to 60% of the principal payment for the Series 2004B
bonds and 70% for the Series 2005A, 2006A, 2006B and 2008A/B bonds.
In accordance with the District’s Master Bond 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’s principal and interest due on all senior bonds and at
least 115% of the current year’s principal and interest due on all bonds. On
June 30, 2023, and 2022, the District was in compliance with this covenant.
Principal and Interest Requirements on Revenue Bonds Payable
The annual principal and interest requirements to maturity on revenue bonds
payable outstanding as of June 30, 2023, are as follows:
Water Infrastructure Finance and Innovation Act (WIFIA) Series 2018A
In December 2018, the Environmental Protection Agency (“EPA”) issued to the
District an amount totaling $47,722,204 for the purpose of constructing the Deer
Creek Sanitary Tunnel Pump Station and Sanitary Sewers Project. The principal
and interest on the bonds are expected to be paid from future wastewater revenues
and the bonds are issued from the April 2016 authorization. The Series 2018A
bonds are not subordinated. The District’s interest rate is 3.06% and is payable in
semiannual installments at varying amounts through May 1, 2053.
Years ending June 30, Principal Interest Total
2024 48,385,000$ 54,492,465$ 102,877,465$
2025 45,145,000 52,743,628 97,888,628
2026 43,270,000 51,079,116 94,349,116
2027 41,095,000 49,405,580 90,500,580
2028 49,610,000 47,687,514 97,297,514
2029-2033 242,985,000 207,810,189 450,795,189
2034-2038 277,330,000 153,701,449 431,031,449
2039-2043 322,295,000 88,339,031 410,634,031
2044-2048 150,910,000 30,248,053 181,158,053
2049-2052 45,900,000 4,364,062 50,264,062
Total 1,266,925,000$ 739,871,087$ 2,006,796,087$
Wastewater System Revenue Bonds Payable/
Water Pollution Control and Drinking Water
Revenue Bonds Payable
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 61
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 an interest rate of 3.06% based on the amount that has been borrowed.
As of June 30, 2023, the outstanding loan balance was $261,480. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2022D
In October 2022, the State of Missouri Direct Loan Program issued to the District
an amount totaling $115,000,000 for the purpose of constructing the Lower
Meramec 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 1.25% and is payable in semiannual
installments at varying amounts through July 1, 2044.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2022D
As the District 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 1.25% based on the amount that has been borrowed.
As of June 30, 2023, the outstanding loan balance was $737,500. The payment
requirements to maturity will be determined after the debt is fully issued.
State of Missouri Direct Loan Series 2022C
In October 2022, the State of Missouri Direct Loan Program issued to the District
an amount totaling $10,000,000 for the purpose of improving, renovating,
repairing, replacing, and equipping the District’s Wastewater System. 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 1.25% and is payable in semiannual installments at
varying amounts through January 1, 2043.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2022C
As the District 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 1.25% based on the amount that has been borrowed.
As of June 30, 2023, the outstanding loan balance was $98,000.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 62
State of Missouri Direct Loan Series 2021B
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $40,201,000 for the purpose of improving, renovating,
repairing, replacing, and equipping the District’s Wastewater System. 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 0.78% and is payable in semiannual installments at
varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021B
As the District 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 0.78% based on the amount that has been borrowed.
As of June 30, 2023, all funds have been drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2021B outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2021A
In January 2021, the State of Missouri Direct Loan Program issued to the District
an amount totaling $63,101,000 for the purpose of constructing the Lower
Meramec Tunnel. The principal and interest on the bonds are expected to be paid
from future wastewater revenues and the bonds are issued from the April 2016
authorization. The District’s interest rate is 0.78% and is payable in semiannual
installments at varying amounts through July 1, 2044.
Years ending June 30, Principal Interest Total
2024 1,800,000$ 289,450$ 2,089,450$
2025 1,830,000 275,352 2,105,352
2026 1,862,000 261,015 2,123,015
2027 1,894,000 246,429 2,140,429
2028 1,926,000 231,594 2,157,594
2029-2033 10,135,000 926,461 11,061,461
2034-2038 11,029,000 515,736 11,544,736
2039-2041 7,081,000 97,348 7,178,348
Total 37,557,000$ 2,843,385$ 40,400,385$
State of Missouri Direct Loan Series 2021B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 63
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2021A
As the District 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 0.78% based on the amount that has been borrowed.
As of June 30, 2023, the outstanding loan balance was $ 27,416,832. 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 Loan Program issued to the
District an amount totaling $22,000,000 for the purpose of constructing the Deer
Creek Tunnel Pump Stations. The principal and interest on the bonds are expected
to be paid from future wastewater revenues and the bonds are issued from the
April 2016 authorization. The District’s interest rate is 0.80% and is payable in
semiannual installments at varying amounts through July 1, 2042.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2020A
As the District incurs approved capital expenditures, the DNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 0.80% based on the amount that has been borrowed.
As of June 30, 2023, all funds have been drawn down on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2020A outstanding as of June 30, 2023, are as follows:
Years ending June 30, Principal Interest Total
2024 989,000$ 173,595$ 1,162,595$
2025 1,002,000 166,092 1,168,092
2026 1,016,000 158,048 1,174,048
2027 1,031,000 149,888 1,180,888
2028 1,045,000 141,612 1,186,612
2029-2033 5,451,000 579,808 6,030,808
2034-2038 5,843,000 354,828 6,197,828
2039-2043 5,623,000 113,564 5,736,564
Total 22,000,000$ 1,837,435$ 23,837,435$
State of Missouri Direct Loan Series 2020A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 64
State of Missouri Direct Loan Series 2019A
In September 2019, the State of Missouri Direct Loan Program issued to the
District an amount totaling $23,952,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. 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 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 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 loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2019A outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2018B
In December 2018, the State of Missouri Direct Loan Program issued to the District
an amount totaling $25,267,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. In April
2022, the total loan amount was reduced to $25,174,403 due to the expiration of
the SRF loan. The principal and interest on the bonds are expected to be paid from
future wastewater revenues and the bonds are issued from the April 2016
Years ending June 30, Principal Interest Total
2024 1,015,000$ 231,658$ 1,246,658$
2025 1,035,000 222,259 1,257,259
2026 1,057,000 212,062 1,269,062
2027 1,078,000 201,655 1,279,655
2028 1,100,000 191,037 1,291,037
2029-2033 5,838,000 788,283 6,626,283
2034-2038 6,448,000 489,025 6,937,025
2039-2043 6,381,000 158,392 6,539,392
Total 23,952,000$ 2,494,371$ 26,446,371$
State of Missouri Direct Loan Series 2019A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 65
authorization. The District’s interest rate is 1.38% and is payable in semiannual
installments at varying amounts through January 1, 2041.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2018B
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 down on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2018B outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2016B
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,500,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through July 1, 2037.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016B
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending June 30, Principal Interest Total
2024 1,100,000$ 317,781$ 1,417,781$
2025 1,122,000 306,125 1,428,125
2026 1,144,000 290,566 1,434,566
2027 1,168,000 274,696 1,442,696
2028 1,192,000 258,495 1,450,495
2029-2033 6,324,000 1,037,822 7,361,822
2034-2038 6,978,000 581,622 7,559,622
2039-2041 4,534,000 110,414 4,644,414
Total 23,562,000$ 3,177,521$ 26,739,521$
State of Missouri Direct Loan Series 2018B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 66
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016B outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2016A
In December 2016, the State of Missouri Direct Loan Program issued to the District
an amount totaling $20,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds are issued from the June 2012 authorization. The District’s
interest rate is 1.2% and is payable in semiannual installments at varying amounts
through January 1, 2037.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2016A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending June 30, Principal Interest Total
2024 3,507,000$ 687,624$ 4,194,624$
2025 3,583,000 655,944 4,238,944
2026 3,661,000 612,714 4,273,714
2027 3,741,000 568,548 4,309,548
2028 3,823,000 523,410 4,346,410
2029-2033 20,402,000 1,904,736 22,306,736
2034-2038 20,343,000 619,110 20,962,110
Total 59,060,000$ 5,572,086$ 64,632,086$
State of Missouri Direct Loan Series 2016B
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 67
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2016A outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2015A
In August 2015, the State of Missouri Direct Loan Program issued to the District
an amount totaling $75,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the June 2012 authorization. The
District’s interest rate is 1.2% and is payable in semiannual installments at
varying amounts through January 1, 2035.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2015A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2015A outstanding as of June 30, 2023, are as follows:
Years ending June 30, Principal Interest Total
2024 939,000$ 176,567$ 1,115,567$
2025 959,000 168,066 1,127,066
2026 981,000 156,492 1,137,492
2027 1,002,000 144,660 1,146,660
2028- 1,024,000 132,570 1,156,570
2029-2033 5,463,000 472,086 5,935,086
2034-2037 4,815,000 131,628 4,946,628
Total 15,183,000$ 1,382,069$ 16,565,069$
State of Missouri Direct Loan Series 2016A
Years ending June 30, Principal Interest Total
2024 3,762,000$ 608,391$ 4,370,391$
2025 3,852,000 573,284 4,425,284
2026 3,943,000 526,015 4,469,015
2027 4,038,000 477,624 4,515,624
2028- 4,134,000 428,067 4,562,067
2029-2031 22,302,000 1,351,858 23,653,858
2034-2035 9,679,000 148,444 9,827,444
Total 51,710,000$ 4,113,683$ 55,823,683$
State of Missouri Direct Loan Series 2015A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 68
State of Missouri Direct Loan Series 2013A
In October 2013, the State of Missouri Direct Loan Program issued to the District
an amount totaling $52,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on 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 District’s interest rate on all outstanding principal was modified
to 0.83% from 1.6% but is still payable in semiannual installments at varying
amounts through July 1, 2034.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2013A
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 loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2013A outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2011A
In November 2011, the State of Missouri Direct Loan Program issued to the
District an amount totaling $39,769,300 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.5% and is payable in semiannual installments at
varying amounts through January 1, 2034.
Years ending June 30, Principal Interest Total
2024 2,555,000$ 267,845$ 2,822,845$
2025 2,622,000 253,611 2,875,611
2026 2,691,000 231,707 2,922,707
2027 2,760,000 209,231 2,969,231
2028 2,832,000 186,173 3,018,173
2029-2033 15,309,000 563,383 15,872,383
2034-2035 4,993,000 41,633 5,034,633
Total 33,762,000$ 1,753,583$ 35,515,583$
State of Missouri Direct Loan Series 2013A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 69
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2011A
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 loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2011A outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2010C
In December 2010, the State of Missouri Direct Loan Program issued to the District
an amount totaling $37,000,000 for the purpose of improving, renovating,
repairing, replacing and equipping the District’s Wastewater System. The
principal and interest on the bonds are expected to be paid from future wastewater
revenues and the bonds were issued from the August 2008 authorization. The
District’s interest rate is 1.7% and is payable in semiannual installments at
varying amounts through January 1, 2031.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010C
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
Years ending June 30, Principal Interest Total
2024 1,982,000$ 363,531$ 2,345,531$
2025 2,032,000 339,086 2,371,086
2026 2,083,000 308,010 2,391,010
2027 2,137,000 276,143 2,413,143
2028 2,191,000 243,455 2,434,455
2029-2033 11,822,000 697,156 12,519,156
2034 2,548,300 29,113 2,577,413
Total 24,795,300$ 2,256,494$ 27,051,794$
State of Missouri Direct Loan Series 2011A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 70
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010C outstanding as of June 30, 2023, are as follows:
State of Missouri Direct Loan Series 2010A
In January 2010, the State of Missouri’s Direct Loan Program - ARRA issued to
the District an amount totaling $7,980,700 for the construction, improvement,
renovation, repair, replacement and equipping of its Wastewater System, under
the authority of and in full compliance with the District’s Charter (“Plan”) and the
bonds were issued from the August 2008 authorization. The District’s interest rate
is 1.5% and is payable in semiannual installments at varying amounts through
July 1, 2031.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2010A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2010A outstanding as of June 30, 2023, are as follows:
Years ending June 30, Principal Interest Total
2024 1,989,000$ 273,938$ 2,262,938$
2025 2,041,000 246,576 2,287,576
2026 2,094,000 212,685 2,306,685
2027 2,148,000 177,911 2,325,911
2028-2031 9,168,000 345,527 9,513,527
Total 17,440,000$ 1,256,637$ 18,696,637$
State of Missouri Direct Loan Series 2010C
Years ending June 30, Principal Interest Total
2024 421,300$ 54,462$ 475,762$
2025 429,800 49,390 479,190
2026 438,500 42,998 481,498
2027 447,400 36,475 483,875
2028 456,500 29,820 486,320
2029-2032 1,671,900 49,988 1,721,888
Total 3,865,400$ 263,133$ 4,128,533$
State of Missouri Direct Loan Series 2010A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 71
State of Missouri Direct Loan Series 2009A
In October 2009, the DNR loaned $23,000,000 to the District. The State of Missouri
Direct Loan Series 2009A note bears interest at a rate of 1.5% per annum and is
payable through January 1, 2030. The purpose of this note was to finance the
designing, constructing, improving, renovating, repairing, replacing and equipping
of new and existing sewer facilities within the District. The principal and interest
on the note are expected to be paid from future wastewater revenues and the note
was issued from the August 2008 authorization.
Principal and Interest Requirements on State of Missouri Direct Loan
Series 2009A
As the District incurred approved capital expenditures, the DNR reimbursed the
District for the expenditures from the bond proceeds account. All funds have been
drawn on this loan.
The annual principal and interest requirements to maturity on the State of
Missouri Direct Loan Series 2009A outstanding as of June 30, 2023, are as follows:
In accordance with the Direct Loan Series 2009A, 2010A, 2010C, 2011A, 2013A,
2015A, 2016A, 2016B, 2018B, 2019A, 2020A, 2021A, and 2021B ordinances, the
District’s annual net operating revenues from wastewater activities, as defined in
the agreement, coupled with investments earnings must be at least 115% of the
current year’s principal and interest due on all bonds. At June 30, 2023 and 2022,
the District was in compliance with this covenant.
Years ending June 30, Principal Interest Total
2024 1,260,000$ 129,329$ 1,389,329$
2025 1,289,200 114,989 1,404,189
2026 1,319,000 96,059 1,415,059
2027 1,349,500 76,690 1,426,190
2028 1,380,700 56,874 1,437,574
2029-2030 2,858,000 52,456 2,910,456
Total 9,456,400$ 526,397$ 9,982,797$
State of Missouri Direct Loan Series 2009A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 72
Wastewater System Cash and Investments
The following accounts have been established in accordance with bond ordinances
and financing agreements that require receipts generated from operations be
segregated and certain reserve accounts be established:
Revenue Fund
The Revenue Fund will be used for the purpose of depositing wastewater and
stormwater operating revenues, providing funds to pay for expenses related to the
operation and maintenance of the District, and fulfilling Sinking Fund
requirements in accordance with the bond ordinances.
Sinking Fund
The bond ordinances provide for deposits to and the use of monies in the Sinking
Fund to be used for the sole purpose of principal and interest payments on the
bonds. Sufficient monies shall be paid in periodic installments from the Revenue
Fund.
Debt Service Fund
The Debt Service Fund shall be used by the Trustee for the sole purpose of paying
the principal and interest on the bonds, as and when the same become due.
Debt Service Reserve Fund
After initial deposit of the amount required pursuant to the bond ordinances and
financing agreements of the Series 2010B, 2012A, 2012B and 2013B bonds, monies
in the Debt Service Reserve Fund shall be disbursed and expended by the District
solely for the payment of the principal and interest on the bonds and notes to the
extent of any deficiency in the Debt Service Fund for such purpose. The District
may disburse and expend monies from the Debt Service Reserve Fund for such
purpose immediately. As of June 30, 2023 and 2022, cash and investments in the
Debt Service Reserve Fund totaled $10,577,107 and $14,220,682, respectively.
Series 2015B was issued without a debt service reserve fund requirement and at
that time $8,945,557 in excess debt service reserves along with part of the Series
2015B proceeds were used to advance refund Series 2006C and Series 2008A
bonds.
Series 2016C was issued without a debt service reserve fund requirement.
Series 2017A was issued without a debt service reserve fund requirement and at
that time $934,325 in excess debt service reserves along with part of the Series
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 73
2017A proceeds were used to partially advance refund Series 2011B, Series 2012A,
Series 2013B and Series 2015B.
Series 2018A was issued without a debt service reserve fund requirement.
Series 2019B was issued without a debt service reserve fund requirement.
Series 2019C was issued without a debt service reserve fund requirement and at
that time $26,045,142 in excess debt service reserves along with the Series 2019C
proceeds were used to partially advance refund Series 2012A, Series 2012B, Series
2013B and Series 2015B.
Series 2020B was issued without a debt service reserve fund requirement.
Series 2021C was issued without a debt service reserve fund requirement and at
that time $4,025,780 in excess debt service reserves along with the Series 2021C
proceeds were used in a current refunding of Series 2011B.
Series 2022A was issued without a debt service reserve fund requirement and at
that time $6,771,267 in excess debt service reserves along with the Series 2022A
proceeds were used in a current refunding of Series 2012A and 2012B.
Series 2022B was issued without a debt service reserve fund requirement.
Series 2023A was issued without a debt service reserve fund requirement and at
that time $3,990,037 in excess debt service reserves along with the Series 2023A
proceeds were used in a current refunding of Series 2013B.
Special Participant Bond Reserve Account
For the Series 2004B, 2005A, 2006A, 2006B, and 2008A/B bonds, the DNR
deposited into the Special Participant Bond Reserve Account, amounts in
accordance with the bond ordinances, which shall be disbursed and expensed by
the District solely for the payment of the principal and interest on the Participant
Bonds to the extent of any deficiency in the Sinking Fund for such purpose. At
June 30, 2023 and 2022, cash and investments in the Special Participant Bond
Reserve Account held on behalf of the District totaled $38,142,488 and
$48,137,652, respectively. Monies in this account are not considered to be District
funds. However, interest earnings on this account are used by the District to reduce
interest payments on the bonds outstanding.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 74
Renewal and Extension Fund
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 monies have been deposited into this account at June 30, 2023.
Project Fund
The Project Funds for all bond issuances 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, 2012A,
2012B and 2013B bonds, shall be deposited into the Project Fund. At June 30, 2023
and 2022 , cash and investments in the Project Funds totaled $0 and $112,835,735,
respectively.
Rebate Fund
The bond ordinances provide for the creation of a Rebate Fund into which shall be
deposited such amounts as are required to be deposited 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; provided,
however, any funds remaining in the Rebate Fund after redemption and payment
of all bonds and payment of any rebatable arbitrage amount, or provision having
been made therefore, shall be remitted to the District. At June 30, 2023 and 2022,
cash and investments in the Rebate Fund totaled $234,991 and $228,446,
respectively.
Administrative Fee Fund
The Administrative Fee Fund will be used for the payment of the Trustee’s fees
and other administrative fees pursuant to the note agreement. The Trustee has
the ability to immediately withdraw the fee amounts when due. Monies held in
this account shall not be invested.
Pledged Revenues
The District pledges revenues to ensure the repayment of all outstanding revenue
bonds. These bonds’ proceeds are used for the District’s capital improvement and
replacement program and their repayment comes from, and is collateralized by,
the District’s wastewater revenues. These revenues are pledged through 2052 at
an approximate amount of $2.0 billion. The proportion of future pledged revenues
to future wastewater revenues is not estimable as annual total revenues fluctuate.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 75
Principal and interest paid out during fiscal year 2023 was 130.9 million with
pledged revenues of $ $296 million. This provided a coverage ratio of 2.3 and
pledged revenues represented 62.7% of all net operating revenues.
Direct Borrowings and Direct Placements
For the fiscal years ending June 30, 2023, and 2022, the District had bonds and
notes from direct borrowings of $894,771,000 and $769,678,403, respectively.
Each series of the District’s subordinate debt evidence a loan from the Missouri
Department of Natural Resources. The net revenues of the wastewater system are
pledged to the payment of the subordinate debt; however, payment of the
subordinate debt from pledged revenues are junior and subordinate to the Senior
Bonds. The subordinate debt contains terms regarding events of default with
finance-related consequences that are classified as (1) delinquent or non-payment
of principal and interest payment on the District’s bonds, (2) failure to perform
obligations under the agreement with the bond purchaser, (3) misrepresentation
to the bond purchaser, and (4) bankruptcy.
The District’s Series 2018 Bond evidences a loan from the United States
Environmental Protection Agency. The net revenues of the wastewater system are
pledged to the payment of the Series 2018 Bond, which was issued as a Senior
Bond. The Series 2018 Bond contains terms regarding events of default with
finance-related consequences that are classified as (1) delinquent or non-payment
of principal and interest payment on the District’s bonds, (2) failure to perform
obligations under the agreement with the bond purchaser, (3) misrepresentation
to the bond purchaser, (4) bankruptcy, (5) covenant default, (6) judgments in excess
of $50,000,000 and (7) failure to maintain existence.
The District had direct placement bonds of $68,505,000 and $45,465,000 in the
fiscal years ending June 30, 2023, and 2022, respectively. In addition, the District
had no unused lines of credit and had no assets pledged as collateral for bonds from
direct placements in the fiscal years ending June 30, 2023, and 2022.
The District has authorized the issuance of Wastewater System Senior Refunding
Revenue Bonds, Direct Placement Series 2025A and 2026A to be issued on May 1,
2025, and May 1, 2026, respectively. The par amount of the bonds will total
$240,490,000. The Series 2025A bonds will be purchased by Morgan Stanley
Municipal Funding, Inc. pursuant to the Amended and Restated Forward Delivery
Bond Purchase Agreement dated March 23, 2020, and the Series 2026A bonds will
be purchased by Barclays Capital pursuant to the Forward Delivery Bond
Purchase Agreement dated October 6, 2021. Upon issuance, the District plans to
use the proceeds of the bonds to refund a portion of the outstanding Wastewater
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 76
System Senior Revenue Bonds Series 2015B and Series 2016B. Wastewater
System Senior Refunding Revenue Bonds, Direct Placement Series 2023A was
issued May 1, 2023, The 23,040,000 were used to fully refund the outstanding debt
issue 2013B. See the details for Series 2023A above for further information.
Wastewater System Senior Refunding Revenue Bonds, Direct Placement Series
2022A, was issued May 3, 2022, and the $39,845,000 proceeds were used to
partially refund the outstanding debt issues 2012A and 2012B. See the explanation
for Series 2022A above for further information. Wastewater System Senior
Refunding Revenue Bonds, Direct Placement Series 2021A, renamed Series 2021C
due to the timing of their issuance, was included in the original authorization, and
was issued on May 3, 2021, and the $5,620,000 proceeds were used to refund the
outstanding Wastewater System Senior Revenue Bonds Series 2011B. See the
explanation for Series 2021C above for further information.
The Amended and Restated Forward Delivery Bond Purchase Agreement for the
Series 2025A and Series 2026A Bonds contain terms regarding events of default
between closing and settlement with finance-related consequences that are
classified as (1) an event of default under other debt instruments, (2) repudiation
of the District’s obligations under the Agreement, (3) dissolution, (4) bankruptcy,
(5) consolidation or merger into another entity resulting in materially weaker
creditworthiness, (6) misrepresentation, (7) significant rating downgrade or rating
withdrawal or (8) refusal or inability of bond counsel to deliver an opinion that the
interest on the Bonds is excludable from gross income for federal income tax
purposes under the Internal 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
purchaser, a make-whole termination payment.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 77
8. Pension Plan
General Information About the Pension Plan
Pension Plan Description. The Metropolitan St. Louis Sewer District Employees’
Pension Plan (“Pension 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 full-time employees of the District commencing
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 Metropolitan St. Louis Sewer
District Defined Contribution Plan (“DC Plan”) and/or The Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust. Current employees with
less than ten years of service on January 1, 2011, could also voluntarily elect to
transfer 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
beginning at age 55 if the member has completed five years of employment.
Ordinance No. 10664 provides for unreduced retirement benefits to any member
whose combined age and term of service is equal to 75.
Effective August 1, 2004, Ordinance No. 11781 amended the Pension Plan to
change the benefit formula to 1.7% of final average earnings plus 0.4% of final
average earnings that are in excess of covered earnings multiplied by the period of
years and months of credited service not to exceed 35 years without including
accrued sick leave. For vested employees who retire or die while in active service,
sick leave is paid out at 1.25% per year of service multiplied by the amount of the
unused accrued sick leave remaining at the employee’s current rate of pay, up to a
maximum of $50,000. Also, 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 accordance with any one of 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 would have been payable on
the normal retirement date plus a special annual retirement benefit provided by
the accumulated value, at 4% per annum interest, of the monthly benefit that
would have been received prior to the postponed retirement date or b) the benefit
determined as of the postponed retirement date under the normal formula.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 78
Effective August 27, 2011, Ordinance No. 13288 amended the Pension Plan to
include the following: “Upon termination or complete discontinuance of
contributions under the Pension Plan, the rights of all Members to benefits accrued
to the date of such termination or discontinuance shall be non-forfeitable, to the
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 first become eligible
for such Medicare programs due to disability in order to receive, or continue to
receive, retiree medical benefits under the Pension Plan and to clarify that any
retiree medical benefits under the Pension Plan will be secondary to Medicare
disability benefits in accordance with the Medicare secondary payor rules.
Effective February 14, 2019, Ordinance No. 15110 amended the Pension Plan to
update the language of Pension Plan benefits for death of a member after
retirement and 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 sum payment or equal monthly installments.
The Pension Plan reports financial data on a calendar year basis and issues a
publicly available financial report that includes audited financial statements and
required supplementary information. That report is available on the District’s
website at msdprojectclear.org and may be obtained by writing: The Metropolitan
St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
Employees Covered by Benefit Terms. At December 31, 2022, and 2021, the
financial reporting period of the Pension Plan, the following employees were
covered by the benefit terms:
Increase
2022 2021 (Decrease)
Active plan members 349 396 (47)
Retirees and beneficiaries currently receiving benefits 862 841 21
Terminated members entitled to receive benefits 165 164 1
Total 1,376 1,401 (25)
As of December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 79
Required Employer Contributions. The District’s employees do not contribute to
the Pension Plan. Ordinances establishing the Pension Plan provide 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 of $12,631,498 and $12,243,539, excluding certain professional fees
paid by the District, were made to the Pension Plan during the District’s fiscal
years ended June 30, 2023, and 2022, respectively. These contributions were made
in accordance with actuarially determined contribution requirements based on
actuarial valuations performed at December 31, 2022, and 2021, respectively.
Net Pension Liability
The net pension liability was measured as of December 31, 2022, and 2021 and the
total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of that date.
Actuarial Assumptions. The total pension liability in the December 31, 2022, and
2021 actuarial valuations were determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Effective December 31, 2022, and December 31, 2021, for current employees,
healthy retirees, disabled retirees and contingent survivors, mortality rates were
based on the Pub-2010 General Amount-Weighted Mortality Tables, male and
female rates, with generational projection from 2010 using MP-2021 improvement
scale (improvement scale updates published annually), respectively.
The actuarial assumptions are based on prior and current year experiences.
Inflation 2.50 percent
Salary Increases 4.25 percent, average, including inflation
Investment Rate of Return 6.25 compounded annually, including inflation
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 80
Long-Term Expected Rate of Return. The long-term expected rate of return is
determined by adding expected inflation to expected long-term real returns and
reflecting expected volatility and correlation. The capital market assumptions at
December 31, 2022, and 2021 are as follows:
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
US Large Cap Equity 25.0% 4.0%
Domestic Core Bonds 14.0% 1.6%
Core "Plus" Bonds 13.0% 2.1%
Real Estate 12.0% 3.7%
International Equity 12.0% 5.2%
US Small Cap Equity 10.0% 4.7%
Global Bonds 8.0% 0.4%
Emerging Markets Equity 6.0% 6.2%
Total 100.0%
December 31, 2022
Long-Term
Expected
Arithmetic
Target Real Rate
Asset Class Allocation of Return
Large Cap US Equity 25.0% 4.0%
Domestic Core Bonds 14.0% -0.2%
Core "Plus" Bonds 13.0% 0.4%
Real Estate 12.0% 2.7%
Developed International Equity 12.0% 5.0%
Small Cap US Equity 10.0% 4.5%
Global Fixed Income 8.0% 3.4%
Emerging Markets Equity 6.0% 5.6%
Total 100.0%
December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 81
Discount Rate. The discount rate used to measure the total pension liability at both
December 31, 2022, and 2021, was 6.25 percent. The Pension Plan’s fiduciary net
position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of
return.
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2021 384,244,899$ 350,373,843$ 33,871,056$
Changes for the year:
Service cost 4,554,971 — 4,554,971
Interest 23,611,834 — 23,611,834
Effect of economic/demographic gains or losses (2,708,815) — (2,708,815)
Effect of assumptions changes or inputs — — —
Benefit payments (22,359,931) (22,359,931) —
Employer contributions — 12,342,595 (12,342,595)
Net investment income — (50,277,882) 50,277,882
Balances as of December 31, 2022 387,342,958$ 290,078,625$ 97,264,333$
Changes in Net Pension Liability for the Year Ending December 31, 2022
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2020 356,407,862$ 326,912,684$ 29,495,178$
Changes for the year:
Service cost 4,477,486 — 4,477,486
Interest 23,673,688 — 23,673,688
Effect of economic/demographic gains or losses 1,563,845 — 1,563,845
Effect of assumptions changes or inputs 18,787,548 — 18,787,548
Benefit payments (20,665,530) (20,665,530) —
Employer contributions — 12,144,484 (12,144,484)
Net investment income — 31,982,205 (31,982,205)
Balances as of December 31, 2021 384,244,899$ 350,373,843$ 33,871,056$
Changes in Net Pension Liability for the Year Ending December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 82
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The
following presents the net pension liability calculated using the 6.25 percent
discount rate for both December 31, 2022, and December 31, 2021, as well as what
the District’s net pension liability would be if it were calculated using a discount
rate that is 1-percentage-point lower or 1-percentage-point higher than the current
rate for each year:
Pension Plan Fiduciary Net Position. Fiduciary net position is the fair value of all
plan assets. Net pension liability is the plan’s total pension liability less its
fiduciary net position, i.e., the plan’s unfunded accrued liability.
Pension Expense and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
For the years ended June 30, 2023, and 2022, the District recognized pension
expense of $22,642,096 and $9,141,638, respectively, after accounting for all
deferred outflows and inflows of resources. The District reported pension-related
deferred outflows of resources and deferred inflows of resources from the following
sources:
1% Current 1%
Decrease Discount Rate Increase
(5.25%) (6.25%) (7.25%)
Net Pension Liability 139,446,779$ 97,264,333$ 61,404,428$
December 31, 2022
1% Current 1%
Decrease Discount Rate Increase
(5.25%) (6.25%) (7.25%)
Net Pension Liability 76,413,375$ 33,871,056$ (2,259,652)$
December 31, 2021
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual experience 260,641$ 1,418,903$ 912,243$ 1,744,230$
Changes of assumptions 3,131,258 — 10,959,403 —
Net difference between projected and actual earnings 39,798,402 — — 21,449,794
Contributions made subsequent to measurement date 6,894,083 — 6,605,179 —
Total 50,084,384$ 1,418,903$ 18,476,825$ 23,194,024$
June 30, 2023 June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 83
In the years ending June 30, 2023, and 2022, amounts currently reported as
deferred outflows of resources, $6,894,083 and $6,605,179, respectively, related to
the District’s contributions subsequent to the measurement date will be recognized
as a reduction of the net pension liability in the years ended June 30, 2024, and
2023, respectively.
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Payable to The Pension Plan
At June 30, 2023, and 2022, the District did not have outstanding required
contributions to the Pension Plan.
9.Fiduciary Pension Trust Fund Cash and Investments
The Metropolitan St. Louis Sewer District Employees’ Pension Plan (“Pension
Plan”) is reported as a Fiduciary Pension Trust Fund. The Plan reports financial
data on a calendar year basis and issues a publicly available financial report with
audited financial statements which can be found on the District’s
www.msdprojectclear.org website or may be obtained by writing: The
Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-
2555. The cash and investment information for this plan is included below and the
fair value measurement and application is included in note 10
Categories of Asset Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the
Plan’s investment in a single issuer. Pursuant to Resolution 3731, the Pension
Plan is authorized to invest in the following:
Net Deferrals of
Resources
Year ended June 30,:
2024 6,281,435$
2025 8,813,886
2026 12,311,756
2027 14,364,321
41,771,398$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 84
Equity Investments: Common stocks of corporations, mutual funds, or co-
mingled equity funds (Domestic and International, target range 6% to 25%,
allowable range 2% to 30%).
Fixed Income Investments: U.S. government and agency securities,
corporate bonds, debentures, notes, or other evidence of indebtedness
assumed or guaranteed by corporations (Domestic and International, target
range 8% to 14%, allowable range 3% to 19%).
Short-term Securities: Commercial 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 0% to 15%).
Hedge Funds, Global Tactical, Real Assets, Market Neutral, and Absolute
Return Investments; these investment strategies help diversify the
investment portfolio.
The fair value of investments managed consisted of the following:
As of December 31,
2022 2021
Investments, at Fair Value
Collective Investment Funds 148,247,202$ 185,031,152$
Mutual Funds 54,377,892 62,608,137
Real Estate Investments 24,002,654 29,021,383
Corporate Obligations 23,878,019 27,025,796
Domestic Common Stocks 16,463,329 21,934,156
US Treasury and Agency Obligations 15,790,260 19,727,449
Money Market Funds 5,073,752 3,666,492
Municipal Obligations 1,542,370 1,370,872
Total Investments 289,375,478$ 350,385,437$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 85
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. The Pension Plan does not have a formal investment
policy that limits investment maturities as a means of managing its exposure to
interest rates. The Pension Plan had the following debt securities and maturities:
As of December 31, 2022
Weighted
Average
Maturity
Investment Type Fair Value (in Years)
Corporate Obligations 23,878,019$ 3.89
U.S. Treasury and Agency Obligations 15,790,260 4.99
Municipal Obligations 1,542,370 3.57
Total 41,210,649$
Portfolio Weighted Average Maturity in Years 4.30
As of December 31, 2021
Weighted
Average
Maturity
Investment Type Fair Value (in Years)
Corporate Obligations 27,025,796$ 4.09
U.S. Treasury and Agency Obligations 19,727,449 4.90
Municipal Obligations 1,370,872 4.28
Total 48,124,117$
Portfolio Weighted Average Maturity in Years 4.43
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 86
The Pension Plan will minimize the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates by:
Structuring the investment portfolio so that securities mature to meet cash
requirements for benefit payments, thereby avoiding the need to sell
securities on the open market prior to maturity; and
Monitoring fixed income investment managers’ performances to be sure the
fixed income portion of the investment portfolio is managed to
predetermined indexes.
Credit Risk
Investment credit risk is the risk that the issuer or other counterparty to an
investment will not fulfill its obligations. The Pension Plan does not have a formal
credit risk policy. The Pension Plan will minimize credit risk by:
Pre-qualifying the financial institutions, broker/dealers, intermediaries,
and advisors with which the Pension Plan will do business; and
Diversifying the portfolio so that potential losses on individual securities
will be minimized.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 87
The following tables provide information on the credit ratings associated with the
Pension Plan’s investments in debt securities:
U.S. Treasury
S & P & Agency Municipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ 228,766$ 3,648,837$ 3,877,603$
AA 15,790,260 1,046,610 629,870 17,466,740
A — 119,294 5,570,630 5,689,924
BBB — 29,667 10,134,897 10,164,564
BB — — 181,275 181,275
Not Rated — 118,033 3,712,510 3,830,543
Total 15,790,260$ 1,542,370$ 23,878,019$ 41,210,649$
U.S. Treasury
S & P & Agency Municipal Corporate
Rating Obligations Obligations Obligations Total
AAA —$ —$ 3,746,560$ 3,746,560$
AA 19,727,449 981,242 998,815 21,707,506
A — 219,601 5,991,808 6,211,409
BBB — 30,684 11,176,202 11,206,886
BB — — 206,003 206,003
Not Rated — 139,345 4,906,408 5,045,753
Total 19,727,449$ 1,370,872$ 27,025,796$ 48,124,117$
Credit Rating by Investment as of December 31, 2022
Credit Rating by Investment as of December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 88
Investments Greater Than 5% of Net Position Restricted for Pension
Benefits or Total Investments
Investments that exceed 5% of net position restricted for pension benefits or total
investments at December 31, 2022, or 2021 are as follows:
2022 2021
BlackRock Russell 1000 Index Non-Lendable Fund 71,104,354$ 24.5 % 92,394,458$ 26.4 %
Prudential Core Plus Bond Fund 39,028,718 13.4 45,880,955 13.1
Morgan Stanley International Equity Fund I 36,796,398 12.7 41,919,939 12.0
UBS Trumbull Property Fund 26,512,585 9.1 29,022,521 8.3
Brandywine Global Opportunistic Fixed Income 21,875,375 7.5 25,976,417 7.4
Morgan Stanley Emerging Markets Fund I 17,581,620 6.1 20,688,321 5.9
Kennedy Mid Cap Value 17,081,925 5.9 22,776,255 6.5
TimesSquare Small Cap Growth Fund 16,122,540 5.6 19,581,409 5.6
December 31,
% %
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 89
10. 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. generally accepted accounting principles. The
hierarchy is based on the valuation inputs used to measure the fair value of the
asset and give the highest priority to unadjusted quoted process in active markets
for identical assets or liabilities and the lowest priority to unobservable inputs. The
Pension Plan had the following fair value measurements of invested assets as of
December 31, 2022, and December 31, 2021:
Investments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level 12/31/2022 (Level 1) (Level 2) (Level 3)
Debt Securities:
Corporate Obligations 23,878,019$ —$ 23,878,019$ —$
US Treasury Notes and Bonds 11,174,481 11,174,481 — —
US Government Agency Obligations 4,615,779 — 4,615,779 —
Municipal Obligations 1,542,370 — 1,542,370 —
Total Debt Securities 41,210,649 11,174,481 30,036,168 —
Equity Securities:
Domestic Equities 16,463,329 16,463,329 — —
International Equities 36,796,272 — 36,796,272 —
Emerging Markets Fund 17,581,620 — 17,581,620 —
Total Equity Securities 70,841,221 16,463,329 54,377,892 —
Total Investments by Fair Value Level 112,051,870 27,637,810$ 84,414,060$ —$
Unfunded Redemption Redemption
Investments Measured at the Net Asset Value (NAV)Commitments Frequency Notice Period
Domestic Equities (1)87,212,430 — Daily Varies
Core Plus Bond Commingled Trust Fund (2)39,028,527 — Daily 1 Day
Real Estate Funds (3)24,002,654 — Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)21,875,375 — Daily 10 Days
Diversified Hedge Fund of Fund (5)130,870 — Quarterly 90 Days
Total Investments Measured at the Net Asset Value 172,249,856
Money Market at Amortized Cost 5,073,752
Total Investments at Fair Value 289,375,478$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 90
(1)Domestic Equities – These funds seek long-term 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.
(2)Core Plus Bond Commingled Trust Fund – Seeks to outperform the Barclays Capital U.S.
Aggregate Bond Index by investing primarily in fixed income securities in the U.S. investment
grade sectors, as well as U.S. fixed income securities below investment grade, the debt of
developed international markets, and the debt of emerging markets. Redemption is daily with a
1-day notice.
(3)Real Estate Funds – The portfolio assets in this investment consist primarily of high-quality
real estate investments located in major markets throughout the U.S. and are diversified by
property type, geographic region and economic sector. The majority of the investments are
stable, primarily income-oriented properties. The fair values of the investments in this type have
been determined using the NAV per share (or its equivalent) of the investments. The District
has elected to liquidate holdings in the UBS Trumbull Property Fund. Redemption requests
from fund investors currently exceed the amount available for redemption. Redemptions are
calculated on a pro rata basis according to the ratio of the requesting investor's units to the total
Investments Measured at Fair Value
Fair Value Measurements Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level 12/31/2021 (Level 1) (Level 2) (Level 3)
Debt Securities:
Corporate Obligations 27,025,796$ —$ 27,025,796$ —$
US Treasury Notes and Bonds 13,576,666 13,576,666 — —
US Government Agency Obligations 6,150,783 — 6,150,783 —
Municipal Obligations 1,370,872 — 1,370,872 —
Total Debt Securities 48,124,117 13,576,666 34,547,451 —
Equity Securities:
Domestic Equities 21,934,156 21,934,156 — —
International Equities 41,919,816 — 41,919,816 —
Emerging Markets Fund 20,688,321 — 20,688,321 —
Total Equity Securities 84,542,293 21,934,156 62,608,137 —
Total Investments by Fair Value Level 132,666,410 35,510,822$ 97,155,588$ —$
Unfunded Redemption Redemption
Investments Measured at the Net Asset Value (NAV)Commitments Frequency Notice Period
Domestic Equities (1)111,961,752 — Daily Varies
Core Plus Bond Commingled Trust Fund (2)45,880,947 — Daily 1 Day
Real Estate Funds (3)29,021,383 — Quarterly 60 Days
Global Fixed Income Collective Trust Fund (4)25,976,417 — Daily 10 Days
Diversified Hedge Fund of Fund (5)1,212,036 — Quarterly 90 Days
Total Investments Measured at the Net Asset Value 214,052,535
Money Market at Amortized Cost 3,666,492
Total Investments at Fair Value 350,385,437$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 91
of all investors then requesting redemptions. Any redemption request that is not fully honored
will be deemed effective in following quarters until completed.
(4)Global Fixed Income Collective Trust Fund – This fund invests in sovereign debt and
currencies of countries in its benchmark index, the investment-grade corporate bond and
mortgage-backed securities markets in those countries, as well as to limited degrees, emerging
market, high yield debt, and securities of countries rated A or better by a nationally recognized
statistical rating organization. Redemption is daily with a 10-day notice.
(5)Diversified Hedge Fund of Fund – Seeks return, long-term capital growth and diversification
through a combination of Managers trading a range of strategies, including, but not limited to,
hedging, distressed securities, arbitrage, and special situations. The fair values of the
investments in this type have been determined using the NAV per share (or 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 to sell said interest, on a best efforts’ basis, and distribute any proceeds to
shareholders.
11. 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 Metropolitan St. Louis
Sewer District Deferred Compensation Plan and Trust (“Plan”), available to all
District employees, permits them to defer a portion of their salary up to Internal
Revenue Code limits. The District does not contribute to the Plan except where
mandated by the Internal Revenue Service to compensate participants for lost
deferral contributions. The deferred compensation is not available to employees
until termination, retirement, death, disability or due to financial hardship as
defined by the Plan. At June 30, 2023 and 2022, the District had outstanding
liabilities owed to the Plan of $202,282 and $192,964, respectively.
The Plan was amended and restated to comply with the Economic Growth and Tax
Relief Reconciliation Act of 2001 (“Act”). The Act made significant changes to
Section 457(b) of the Internal Revenue Code of 1986, as previously amended. The
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 Plan are not included in the
accompanying financial statements.
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 St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103-
2555.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 92
Defined Contribution Plan
The Metropolitan St. Louis Sewer District Defined Contribution Plan (“DC Plan”)
was established by the District’s Board of Trustees, through Ordinance 13180,
which became effective January 1, 2011. The following full-time employees are
eligible to participate in the DC Plan: (i) employees first hired on or after 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 provisions of
such Pension Plan, and (iii) employees rehired on or after January 1, 2011, who are
not eligible to accrue benefits under the Pension Plan. An employee shall become a
participant in the DC Plan on the first day on which he or she performs an hour of
service for the District.
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
members of the District’s Board of Trustees, two elected employee members and
four members of the District’s management staff administer the DC Plan. A
committee of the District’s Board of Trustees, with the aid of an investment
advisor, reviews and evaluates the DC Plan’s investment options and the related
rates of return on a periodic basis.
This 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 of savings, thereby providing a measure of financial
security for such employees and their beneficiaries upon retirement or in the event
of death or disability. All assets of the DC Plan are the sole property of the DC Plan
and are not subject to the claims of creditors of the District and the assets and
liabilities of the DC Plan are not included in the accompanying financial
statements.
Employer Basic Contributions: For each payroll period, the District contributes an
amount equal to 7% of the covered compensation earned during such period by
each participant entitled to an allocation of such contribution. Upon a participant’s
severance from service, the unvested amount credited to his/her individual account
shall be forfeited and credited to the Employer Basic Contributions account and
shall be used to reduce future Employer Basic Contributions. If a participant is
rehired before incurring two consecutive years break in service, the amount
previously forfeited will be restored. If rehired after two consecutive years of break
in service, the amounts previously forfeited will not be restored.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 93
Employer Matching Contributions: For each payroll period, the District
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. Louis Sewer District Deferred Compensation Plan and Trust;
provided that, before-tax contributions in excess of 4% of the covered compensation
of the participant for the payroll period shall not be considered for 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 credited to the participant’s Employer Matching
Contributions Account shall be fully vested at all times.
In no event shall the sum of the employer 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 increases in the cost of living.
(b) 100% of the participant’s compensation 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 $3,194,880 and $3,034,606
for the years ended June 30, 2023, and 2022, respectively. Forfeitures were
$230,743 and $214,069, for the years ended June 30, 2023, and 2022, respectively,
and the balances in the prepaid forfeitures account as of June 30, 2023, and 2022
were $17,551 and $17,508, respectively. At June 30, 2023 and 2022, the District
had outstanding liabilities owed to the DC Plan of $134,962 and $118,731,
respectively.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 94
Vesting: As of any time before the normal retirement age of a participant, the first
day of the month coinciding with or next following a person’s sixty-fifth birthday
and completion of sixty months of continuous service (other than upon death or
permanent disability), the vested percentage of the amounts credited to the
participant’s Employer Basic Contributions account shall be determined in
accordance with the following schedule:
Months Of
Continuous Service
Vested (Non-
Forfeitable)
Percentage
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The Metropolitan St. Louis Sewer District Defined Contribution Plan 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 St. Louis
Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
12. Postemployment Benefits Other Than Pensions (“OPEB”)
General Information About The OPEB Plan
Plan Description. The District’s defined benefit OPEB plan, The Metropolitan St.
Louis Sewer District Retiree Medical Coverage Plan (“OPEB Plan”), provides
retiree medical coverage for all permanent full-time employees who retire from the
District on or after age 62 with five years of service 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 a
Memorandum of Understanding with respect to this Plan modification. The OPEB
Plan is a single employer defined benefit OPEB plan administered by the District.
The OPEB Plan was established by Ordinance No. 9826 and became effective
January 1, 1996. This ordinance has 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 14, 2019. Ordinance 15109 has been repealed and a new ordinance
enacted in lieu thereof with Ordinance No. 15961 covering defined contribution
retirees and adopted on July 14, 2022, being the most current ordinances covering
the OPEB Plan in its entirety. The District offers two medical plan options, a
traditional open access plan and a high deductible health plan, and both plans offer
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 95
wellness rates for those employees who qualify. No assets are accumulated in a
trust that meets the criteria in paragraph 4 of GASB Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pension (“GASB
Statement No. 75”).
Benefits Provided. The OPEB 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 single
employee until the retiree becomes eligible for Medicare at age 65.
In the last six months of fiscal year 2023 the monthly amount the District paid
towards all premiums remained the same as the first six months of fiscal year 2023
due to the lack of a rate increase. Retiree premium was $647.22 for retirees
qualifying for the wellness incentive ($658.06 for retirees with wellness qualified
spouse). The $647.22 paid by the District equates to 86% of the traditional plan’s
premium and 92% of the high deductible plan’s premium. For retirees not
qualifying for the wellness incentive, the District paid $603.89 of the premium
which 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 remaining 8-20% of the retiree’s total monthly
premium. The OPEB Plan also provided life insurance coverage for a very small,
closed group of disabled former employees.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 96
The monthly premiums for calendar year 2023 plans and coverage tiers are as
follows:
In fiscal year 2022, and in the first six months of fiscal year 2023, the monthly
amount the District paid towards the retiree’s premium was $647.22 for retirees
qualifying for the wellness incentive ($658.06 for retirees with wellness qualified
spouse). The $647.22 paid by the District equates to 86% of the traditional plan’s
premium and 92% of the high deductible plan’s premium. For retirees not
qualifying for the wellness incentive, the District paid $603.89 of the premium
which equates to 80% for the traditional plan and 86% for the high deductible plan.
The retiree paid 100% of the spousal, children or family premium incremental
increases in addition to the remaining 8-20% of the retiree’s total monthly
premium. The OPEB Plan also provided life insurance coverage for a very small,
closed group of disabled former employees.
Total Retiree OPEB Benefit Net Cost
Coverage Tier Premium Paid by District to Retiree
Traditional Plan with wellness incentive
Retiree 754.86$ 647.22$ 107.64$
Retiree + Spouse 1,608.07 658.06 950.01
Retiree + Child(ren) 1,461.10 647.22 813.88
Retiree + Family 2,228.70 658.06 1,570.64
Traditional Plan with no wellness incentive
Retiree 754.86 603.89 150.97
Retiree + Spouse 1,608.07 603.89 1,004.18
Retiree + Child(ren) 1,461.10 603.89 857.21
Retiree + Family 2,228.70 603.89 1,624.81
High Deductible Plan with wellness incentive
Retiree 702.36 647.22 55.14
Retiree + Spouse 1,496.18 658.06 838.12
Retiree + Child(ren) 1,359.44 647.22 712.22
Retiree + Family 2,073.62 658.06 1,415.56
High Deductible Plan with no wellness incentive
Retiree 702.36 603.89 98.47
Retiree + Spouse 1,496.18 603.89 892.29
Retiree + Child(ren) 1,359.44 603.89 755.55
Retiree + Family 2,073.62 603.89 1,469.73
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 97
The monthly premiums for calendar year 2022 plans and coverage tiers are as
follows:
The ordinance establishing the OPEB Plan assigned the authority to establish and
amend OPEB Plan benefit provisions to the District. The contribution
requirements of the District and OPEB 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 Covered by Benefit Terms. At June 30, 2023 and 2022, the following
employees were covered by the benefit terms:
Total Retiree OPEB Benefit Net Cost
Coverage Tier Premium Paid by District to Retiree
Traditional Plan with wellness incentive
Retiree 754.86$ 647.22$ 107.64$
Retiree + Spouse 1,608.07 658.06 950.01
Retiree + Child(ren)1,461.10 647.22 813.88
Retiree + Family 2,228.70 658.06 1,570.64
Traditional Plan with no wellness incentive
Retiree 754.86 603.89 150.97
Retiree + Spouse 1,608.07 603.89 1,004.18
Retiree + Child(ren)1,461.10 603.89 857.21
Retiree + Family 2,228.70 603.89 1,624.81
High Deductible Plan with wellness incentive
Retiree 702.36 647.22 55.14
Retiree + Spouse 1,496.18 658.06 838.12
Retiree + Child(ren)1,359.44 647.22 712.22
Retiree + Family 2,073.62 658.06 1,415.56
High Deductible Plan with no wellness incentive
Retiree 702.36 603.89 98.47
Retiree + Spouse 1,496.18 603.89 892.29
Retiree + Child(ren)1,359.44 603.89 755.55
Retiree + Family 2,073.62 603.89 1,469.73
June 30, 2023 June 30, 2022
Inactive employees or beneficiaries currently receiving benefit payments 115 118
Active employees 892 916
Total 1,007 1,034
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 98
Total OPEB Liability
The District’s total OPEB liability measured as of December 31, 2022, and
December 31, 2021, was $26,108,766 and $26,793,582, respectively. The District’s
total OPEB liabilities for both years were determined based on an actuarial
valuation date of June 30, 2021 and were calculated based on the discount rates
and actuarial assumptions below and were then projected forward to the
measurement dates.
Actuarial Assumptions and Other Inputs. The total OPEB liabilities based on the
June 30, 2021, actuarial valuation was determined using the following actuarial
assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
The discount rate was based on the 20 Year Bond General Obligation Index.
Mortality rates were based on the Pub-2010 General Amount-Weighted Mortality
Tables for Employees, Healthy Retirees, Disabled Retirees and Contingent
Survivors, male and female rates, with generational projection from 2010 using
the MP-2021 scale for the measurement date of December 31, 2021.
The actuarial assumptions are based on prior and current year experiences. The
plan has not had a formal actuarial experience study performed.
Inflation 2.50 percent
Healthcare cost trend rates 5.90 percent for 2022, eventually reducing to an ultimate rate of 3.70
percent for 2073 and beyond
Salary increases 4.25 percent, average, including inflation
Retiree's share of benefit-
related costs
8 - 20 percent of projected health insurance premiums for retirees
depending on plan selected (traditional or high deductible) and wellness
qualification for 2022 and 2021, respectively
Discount rate 3.72 percent for December 31, 2022
2.06 percent for December 31, 2021
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 99
Changes in the Total OPEB Liability
Changes of assumptions or other inputs reflect a change in the discount rate from
2.06 percent in 2021 to 3.72 percent in 2022 and the change in mortality
assumptions referenced above.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The
following presents the total OPEB liability of the District as of December 31, 2022,
calculated using the discount rate of 3.72%, 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 (2.72%) or 1-percentage-point higher (4.72%) than the
current discount rate.
Changes in the Total OPEB Liability for the Years Ending
Increase (Decrease)
December 31, 2022 December 31, 2021
Total OPEB Liability Beginning Balance 26,793,582$ 24,920,628$
Changes for the year:
Service cost 2,259,154 2,106,855
Interest on total OPEB liability 579,288 553,336
Effect of plan changes — —
Effect of economic/demographic gains or losses — 533,798
Changes of assumptions or other inputs (1,649,771)542,115
Benefit payments (1,873,487)(1,863,150)
Net changes (684,816)1,872,954
Total OPEB Liability Ending Balance 26,108,766$ 26,793,582$
1%Current 1%
Decrease Discount Rate Increase
(2.72%)(3.72%) (4.72%)
Total OPEB Liability 27,808,237$ 26,108,766$ 24,494,480$
December 31, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 100
The following presents the total OPEB liability of the District as of December 31,
2021, calculated using the discount rate of 2.06%, 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 (1.06%) or 1-percentage-point higher (3.06%) than the
current discount rate.
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend
Rates. The following presents the total OPEB liability of the District as of
December 31, 2022, calculated using the current range of healthcare cost trend
rates, as well as what the District’s total OPEB liability would be if it were
calculated using the range of healthcare cost trend rates that were 1-percentage-
point lower (4.90% decreasing to 2.70%) or 1-percentage-point higher (6.90%
decreasing to 4.70%) than the current range of healthcare cost trend rates of 5.90%
decreasing to 3.70%.
1%Current 1%
Decrease Discount Rate Increase
(1.06%)(2.06%) (3.06%)
Total OPEB Liability 28,436,953$ 26,793,582$ 25,217,639$
December 31, 2021
Current
Healthcare
Cost Trend
1% Decrease Rates 1% Increase
(4.90%(5.90%(6.90%
decreasing decreasing decreasing
to 2.70%) to 3.70%) to 4.70%)
Total OPEB Liability 23,261,141$ 26,108,766$ 29,478,958$
December 31, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 101
The following presents the total OPEB liability of the District as of December 31,
2021, calculated using the current range of healthcare cost trend rates, as well as
what the District’s total OPEB liability would be if it were calculated using the
range of healthcare cost trend rates that were 1-percentage-point lower (4.70%
decreasing to 2.70%) or 1-percentage-point higher (6.70% decreasing to 4.70%)
than the current range of healthcare cost trend rates of 5.70% decreasing to 3.70%.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to OPEB
For the years ended June 30, 2023, and 2022, the District recognized OPEB
expense of $2,630,534 and $2,606,467, respectively. At June 30, 2023 and 2022, the
District reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
In the years ending June 30, 2023, and 2022, amounts currently reported as
deferred outflows of resources, $941,912 and $926,270, respectively, related to the
District’s benefit payments subsequent to the measurement date and will be
recognized as a reduction of the total OPEB liability in the years ended June 30,
2024 and 2023, respectively.
Current
Healthcare
Cost Trend
1% Decrease Rates 1% Increase
(4.70% (5.70% (6.70%
decreasing decreasing decreasing
to 2.70%) to 3.70%) to 4.70%)
Total OPEB Liability 24,033,084$ 26,793,582$ 30,064,474$
December 31, 2021
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual experience 442,550$ 2,515,643$ 488,174$ 2,858,373$
Changes of assumptions or other inputs 2,530,503 1,982,865 2,873,737 587,130
Benefit payments made subsequent to measurement date 941,912 — 926,270 —
Total 3,914,965$ 4,498,508$ 4,288,181$ 3,445,503$
June 30, 2023 June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 102
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
13. Self-Insurance Programs
The District is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The District has established a risk management program and retains
the risk related to its obligation to provide workers' compensation and medical and
hospitalization benefits to its employees; and to pay water backup claims to its
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,
2023 and 2022, these liabilities amounted to $6,268,562 and $5,057,417,
respectively.
The claims liabilities reported are based on the requirements of GASB Statement
No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if
information obtained prior to the issuance of the financial statements indicates it
is probable that a liability has been incurred and the amount of the liability can be
reasonably estimated. Changes in the balance of claims liabilities during fiscal
2023, 2022, and 2021 were as follows:
Net Deferrals of
Resources
Year ended June 30:
2024 (207,908)$
2025 (207,908)
2026 (207,908)
2027 (207,908)
2028 (200,761)
Thereafter (493,062)
(1,525,455)$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 103
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. The
District also maintains excess liability insurance coverage for workers'
compensation and medical and hospitalization claims; 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.
14. Closure and Post-Closure Care Costs
State and federal laws and regulations require the District to place a final cover
on its Prospect Hill Reclamation Project landfill site when it stops accepting waste
and to perform certain maintenance and monitoring functions at the site for 30
years after closure. Although closure and post-closure care costs will be paid only
near or after the date that the landfill stops accepting waste, the District reports
a portion of these closure and post-closure care costs as an operating expense in
each fiscal year. The $713,441 and $750,948 reported as landfill closure and post-
closure care liabilities at June 30, 2023 and 2022, respectively, represent the
cumulative amounts reported at fiscal year-end and represent 69.9% of the
estimated closure and post-closure care costs of the landfill for fiscal years ended
June 30, 2023 and 2022. These amounts are based on what it would cost to perform
all closure and post-closure care in 2023 and 2022, respectively.
The remaining disposal life estimate was calculated in 2009 and was estimated at
eight years factoring in a future annual average disposal rate of 96,500 cubic yards.
It was noted in the 2009 Black and Veatch study that this life could be 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
capacity and MSD expects the landfill to be in use for another 8-11 years and the
total capacity of the landfill and the available space as of 2022 was adjusted. In
addition, a new survey of the landfill was performed in 2022 which increased the
remaining capacity due to settlement and minor vehicle compaction. The District
will continue to accrue the remaining estimated cost of closure and post-closure
care annually.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 104
The District is required to demonstrate that it has the financial capability to close
the landfill to the State of Missouri through the use of a financial test as specified
in 10 CSR 80-2.030(4)(D)6 of the Missouri Solid Waste Management Rules. The
District has complied with the State’s requirement. The District recognizes that
estimates of closure costs may change as a result of inflation, deflation, and/or
changes in technology and applicable laws and regulations. If closure cost
estimates change, the liability currently reported on the Statements of Net
Position will be adjusted accordingly.
15. Commitments And Contingencies
United States And State Of Missouri V. Metropolitan St. Louis Sewer
District; In The United States District Court For The Eastern District Of
Missouri; Case No. 07-1120.
On April 27, 2012, the Court entered the consent decree (“CD”) involving the
Environmental Protection Agency, Missouri Department of Natural Resources,
Missouri Coalition for the Environment and The Metropolitan St. Louis Sewer
District (“MSD”). At the time the District entered into the CD, the CD required the
District to spend approximately $4.7 billion, in 2010 dollars, over a 23-year
implementation period. Throughout this period improvements will be made to the
District’s separate sewer system, combined sewer system, and wastewater
treatment plants. On June 1, 2011, the State of Missouri approved Chapter 11,
Chapter 12, and Appendix Q of the District’s Combined Sewer Overflow Long-Term
Control Plan Updated Report, dated February 2011.
On June 22, 2018, a United States District Judge approved an amendment to the
CD to extend it by five years from a 23-year program to a 28-year program. Recent
regulatory changes have compelled MSD to accelerate certain non-consent decree
work. This amendment will allow MSD to meet these new regulatory requirements
in a fiscally responsible way while better controlling rate increases over the coming
years. In 2023 dollars the CD effort is estimated to cost $7.2 billion. The District
continues to comply with the CD.
Other Commitments and Contingencies
The District is a defendant in various other matters of litigation. Of these matters,
management and District’s legal counsel do not anticipate any material effect on
the June 30, 2023 and 2022 financial statements.
The District has entered into construction and other contracts amounting to
approximately $634,000,000 and $540,000,000 at June 30, 2023 and 2022,
respectively, and through the respective audit report date. The District had
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 105
$628,219,393 and $744,149,393 in revenue bonds authorized by the voters but
unissued as of June 30, 2023 and 2022, respectively.
16. Restricted Net Position
The Statements of Net Position report $106,786,576 and $96,029,444 of restricted
net position at June 30, 2023 and 2022, respectively, of which $83,139,418 and
$71,883,165 are restricted due to enabling legislation, as of June 30, 2023 and
2022, respectively.
17. Segment Information
The District issued wastewater revenue bonds to finance wastewater
infrastructure projects. The District accounts for both wastewater and stormwater
activities in a single enterprise fund, but investors in those bonds rely solely on the
revenue generated by the wastewater activities for repayment. Fiscal year 2023
and 2022 summary financial information for each business segment is presented
below.
A segment 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
revenue stream pledged in support of the revenue bonds and has related expenses,
gains and losses and assets, deferred outflows, liabilities and deferred inflows that
are required by external parties to be accounted for separately. The wastewater
system is the only reportable segment that meets the requirements of GASB
Statement No. 34, Basic Financial Statements - and Management’s Discussion and
Analysis - for State and Local Governments. The stormwater system is reported on
for informational purposes only.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 106
Financial information as of and for the years ended June 30, 2023 and 2022 of the
District’s Wastewater Segment is as follows:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 107
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 108
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 109
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 110
Financial information as of and for the years ended June 30, 2023 and 2022
of the District’s Stormwater Segment is as follows:
2023 2022
Assets
Current Assets
Unrestricted Current Assets
Cash and cash equivalents 535,930$ 2,104,687$
Investments 9,582,032 6,992,110
Sewer service charges receivable, less allowance of
$90,958 in 2023 and $97,073 in 2022 42,062 46,641
Property taxes receivable, less allowance of $7,605 in 2023
and $6,023 in 2022 394,915 294,552
Accrued income on investments 34,337 21,562
Total Unrestricted Current Assets 10,589,276 9,459,552
Restricted Current Assets
Cash and cash equivalents 801,905 2,978,669
Investments 17,305,072 9,896,863
Total Restricted Current Assets 18,106,977 12,875,532
Total Current Assets 28,696,253 22,335,084
Non-Current Assets
Restricted Assets
Cash and cash equivalents 956,555 4,340,281
Investments 20,641,513 14,420,790
Long-term investments 39,208,942 36,671,648
Property taxes receivable, less allowance of $78,658 in 2023
and $35,016 in 2022 2,218,097 1,698,593
Accrued income on investments 275,452 142,505
Total Restricted Non-Current Assets 63,300,559 57,273,817
Other Assets
Long-term investments 10,390,989 10,544,282
Total Other Assets 10,390,989 10,544,282
Capital Assets
Depreciable:
Collection and pumping plant 707,341,820 698,614,594
General plant and equipment 19,402,917 18,381,227
726,744,737 716,995,821
Less: Accumulated depreciation 257,359,323 246,584,322
Net depreciable assets 469,385,414 470,411,499
Non-depreciable:
Land 10,311,976 9,877,572
Construction in progress 35,000,205 32,237,759
Net Capital Assets 514,697,595 512,526,830
Total Non-Current Assets 588,389,143 580,344,929
Total Assets 617,085,396 602,680,013
STORMWATER SEGMENT
STATEMENTS OF NET POSITION
June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 111
2023 2022
Deferred Outflows of Resources:
Pension-related outflows 7,698,735 2,386,050
OPEB-related outflows 538,636 591,674
Total Deferred Outflows of Resources 8,237,371 2,977,724
Liabilities
Current Liabilities-Payable From Unrestricted Assets
Contracts and accounts payable 72,499 101,288
Deposits and accrued expenses 10,764,033 9,499,676
Retainage payable 45,192 95,976
Total Current Liabilities-Payable From Unrestricted Assets 10,881,724 9,696,940
Current Liabilities-Payable From Restricted Assets
Contracts and accounts payable 1,224,049 828,414
Retainage payable 573,633 824,282
Total Current Liabilities-Payable From Restricted Assets 1,797,682 1,652,696
Total Current Liabilities 12,679,406 11,349,636
Non-Current Liabilities
Net pension liability 14,559,707 5,550,889
Total OPEB liability 3,584,799 3,682,118
Total Non-Current Liabilities 18,144,506 9,233,007
Total Liabilities 30,823,912 20,582,643
Deferred Inflows of Resources:
Pension-related inflows 232,159 2,505,686
OPEB-related inflows 647,400 497,757
Total Deferred Inflows of Resources 879,559 3,003,443
Net Position
Net investment in capital assets 513,080,425 510,930,034
Restricted for:
Subdistrict construction and improvement 81,156,342 69,952,336
Unrestricted (617,471) 1,189,281
Total Net Position 593,619,296$ 582,071,651$
STATEMENTS OF NET POSITION (Continued)
June 30,
STORMWATER SEGMENT
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 112
2023 2022
Operating Revenues
Sewer service charges (1,918)$ (811)$
Recovery of (provision for) doubtful sewer service charge accounts 5,751 6,413
Other 7,381 14,937
Total Operating Revenues 11,214 20,539
Operating Expenses
Collection system maintenance 14,323,051 13,181,441
Engineering 10,659,300 10,599,484
General and administrative 2,237,094 315,306
Depreciation 11,325,168 11,283,302
Asset management 1,889,221 1,573,905
Total Operating Expenses 40,433,834 36,953,438
Operating (Loss) (40,422,620) (36,932,899)
Non-Operating Revenues
Property taxes levied by the District 48,729,794 44,479,669
Investment income 1,457,758 (1,713,359)
Total Non-Operating Revenues 50,187,552 42,766,310
Non-Operating Expenses
Net loss on disposal and sale of capital assets 408,903 690,480
Non-recurring projects and studies 2,573,625 1,891,225
Total Non-Operating Expenses 2,982,528 2,581,705
Income (Loss) Before Capital Contributions 6,782,404 3,251,706
Capital Contributions
Capital assets contributed 4,551,378 8,087,321
Grant revenue 213,863 1,458,341
Total Capital Contributions 4,765,241 9,545,662
Change In Net Position 11,547,645 12,797,368
Net Position - Beginning Of Year 582,071,651 569,274,283
Net Position - End Of Year 593,619,296$ 582,071,651$
STORMWATER SEGMENT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For The Years
Ended June 30,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 113
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 114
18. Tax Abatements
Tax abatements, as defined by Governmental Accounting Standards Board
(“GASB”) Statement No. 77, Tax Abatement Disclosures (“GASB Statement No.
77”), are agreements between a government and an individual or entity in which
the government promises to forgo tax revenues and the individual or entity
promises to subsequently take a specific action that contributes to economic
development or otherwise benefits the government or its citizens. This Statement
requires disclosure of tax abatement information about (1) a reporting
government’s own tax abatement agreements and (2) those that are entered into
by other governments and that reduce the reporting government’s tax revenues.
Since the District does not and has not entered into tax abatement agreements
directly with any individuals or entities, the following estimates are from tax
abatements 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
expanding businesses in certain specified 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.
Land Clearance for Redevelopment Authority: assists with the
redevelopment of blighted or insanitary areas for residential, recreational,
commercial, industrial or public uses.
Urban Redevelopment Corporations: provides real property tax abatements
to encourage the redevelopment of blighted areas by an eligible city or
county.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 115
The amount of the District’s tax revenues that were abated by the county and cities
initiating the programs are reported in the following tables.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 116
Tax Abatements entered into by St. Louis City
The City of St. Louis offers a real estate tax abatement program as a development
tool designed to assist developers, businesses and individuals with renovation and
new construction 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 rehabilitation of an existing building.
The application must be made before construction begins and the usual term for
tax abatement is five to ten years.
The amount of the District’s tax revenues calculated at the District’s tax rates of
$.1053 and $.1078 per $100 of assessed value for fiscal 2023 and 2022, respectively,
that were abated by St. Louis City are reported in the following tables.
Land
Enhanced Industrial Clearance for Urban
St. Louis County Enterprise Development Redevelopment Redevelopment Total Tax
or City Zones Bonds Authority Corporations Abatements
St Louis County —$ 166,659$ —$ 11,893$ 178,552$
Bellerive — 3,642 — — 3,642
Berkeley 2,717 — — — 2,717
Brentwood — — — 8,818 8,818
Bridgeton — 498 — 7,357 7,855
Clayton — 75,352 — 4,082 79,434
Edmundson — — — 14,047 14,047
Eureka — 344 — — 344
Ferguson — 6,610 — 975 7,585
Frontenac — — — 11,793 11,793
Hazelwood 9,054 55,453 — 129,542 194,049
Kinloch — — — 56,774 56,774
Jennings — 162 — — 162
Maplewood — — — 13,774 13,774
Maryland Heights — — — 5,304 5,304
Normandy — — — 1,343 1,343
Olivette — — — 2,516 2,516
Overland — — — 4,591 4,591
Richmond Heights — — — 22,253 22,253
Rock Hill — — — 2,370 2,370
St. Ann — 356 — — 356
Sunset Hills — — — 863 863
University City — — 12,532 — 12,532
Woodson Terrace — — — 204 204
Total Tax Abatements 11,771$ 309,076$ 12,532$ 298,499$ 631,878$
For the Year Ended June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 117
Tax Increment Financing utilized by St. Louis County, Cities located in St. Louis
County and St. Louis City
Missouri’s Real Property Tax Increment Allocation Redevelopment Act enables
cities to finance certain redevelopment costs with the revenue generated from (i)
payments in lieu of real estate taxes, as measured by the net increase in assessed
valuation resulting from redevelopment and (ii) a portion of the increase in other
local tax revenue associated with new economic activity. When a tax increment
financing (“TIF”) plan is adopted, real estate taxes in the redevelopment are frozen
at their current level. By applying the real estate tax rate of all taxing districts
having taxing power within the redevelopment area to the increased assessed
valuation resulting from redevelopment, a tax “increment” is produced. The real
estate tax increments are referred to as payments in lieu of taxes, or “PILOTs”,
and are deposited in a special allocation fund.
Reduced
Unabated Tax Abated Tax Tax
St. Louis City Values Revenue Values Revenue Revenue
Residential 220,648,200$ 202,116$ 120,681,204$ 24,347$ 177,769$
Commercial 220,648,200 232,343 174,563,962 58,821 173,522
Total 441,296,400$ 434,458$ 295,245,166$ 83,167$ 351,291$
For the Year Ended June 30, 2023
Reduced
Unabated Tax Abated Tax Tax
St. Louis City Values Revenue Values Revenue Revenue
Residential 157,389,170$ 163,842$ 107,787,020$ 21,320$ 142,522$
Commercial 162,562,700 169,228 142,609,494 47,505 121,722
Total 319,951,870$ 333,070$ 250,396,514$ 68,825$ 264,245$
For the Year Ended June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 118
The estimated TIF incremental values and the District’s net reduced tax revenue
resulting from the TIFs adopted in St. Louis County and the cities located in the
County and adopted in the City of St. Louis are as follows:
In summary, the District’s total tax revenues increased during fiscal 2023 and
2022 as a result of the programs of other governments are as follows:
TIF TIF
Incremental Reduced Incremental Reduced
St. Louis County or City Values Tax Revenues Values Tax Revenues
St. Louis County and Cities Located
in St. Louis County 518,980,520$ 546,486$ 571,648,520$ 616,237$
St. Louis County PILOTs Received — (52,123) — (97,358)
St. Louis City 1,296,447,243 305,185 1,301,447,243 321,587
St. Louis City PILOTs Received — (6,356) — (39,620)
Total 1,815,427,763$ 793,192$ 1,873,095,763$ 800,846$
June 30, 2023
For the Years Ended
June 30, 2022
Reduced Reduced
St. Louis County or City Tax Revenues Tax Revenues
St. Louis County and Cities Located
in St. Louis County - Tax Abatements 655,597$ 631,878$
St. Louis City - Tax Abatements 351,291 264,245
St. Louis County and Cities Located
in St. Louis County - TIFs 494,363 518,879
St. Louis City - TIFs 298,829 281,967
Total Reduced Tax Revenues 1,800,080$ 1,696,970$
For the Years Ended
June 30, 2023 June 30, 2022
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 119
19. Subsequent Events
In preparing these financial statements the District has evaluated events and
transactions for potential recognition or disclosure through December 4, 2023, the
date the financial statements were available to be issued.
In August 2023, the District entered into an agreement with the State of Missouri’s
Direct Loan Program to receive amounts up to $25.8M for the purpose of
improving, renovating, repairing, replacing and equipping the District’s
Wastewater System. Series 2023B will have principal repayments effective in 2025
(FY26) with a maturity date of 2044 (FY45). The principal and interest on the
bonds are expected to be paid from future wastewater revenues. The District’s
interest rate is 1.21% and is payable in semiannual installments at varying
amounts through 2044 in addition to an annual administrative fee of 0.50%.
As the District incurs approved capital expenditures, Missouri Department of
Natural Resources (“MDNR”) reimburses the District for the expenditures from
the bond proceeds account. The District repays the loan at an interest rate of 1.21%
based on the amount that has been borrowed. As of the date of this report, the
outstanding loan balance was $192,806. The payment requirements to maturity
will be determined after the debt is fully issued.
In August 2023, the District entered into an agreement with the State of Missouri’s
Direct Loan Program to receive amounts up to $8.5M for the purpose of improving,
renovating, repairing, replacing and equipping the District’s Wastewater System.
Series 2023C will have principal repayments effective in 2024 (FY25) with a
maturity date of 2043 (FY44). The principal and interest on the bonds are expected
to be paid from future wastewater revenues. The District’s interest rate is 1.21%
and is payable in semiannual installments at varying amounts through 2043 in
addition to an annual administrative fee of 0.50%.
As the District incurs approved capital expenditures, MDNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 1.21% based on the amount that has been borrowed.
As of the date of this report, the outstanding loan balance was $89,000. The
payment requirements to maturity will be determined after the debt is fully issued.
In September 2023, the District entered into an agreement with the
Environmental Protection Agency (“EPA”) to receive amounts up to $330.0M for
system improvements in the Bissell and Lemay service area. Series 2023D will
have principal repayments effective in 2044 (FY44) with a maturity date of 2062
(FY62). The principal and interest on the bonds are expected to be paid from future
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Notes to Financial Statements (Continued)
Page 120
wastewater revenues. The District’s interest rate is 4.43% and is payable in
semiannual installments at varying amounts through 2062.
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 an interest rate of 4.43% based on the amount that has been borrowed.
The payment requirements to maturity will be determined after the debt is fully
issued.
In September 2023, the District entered into an agreement with the State of
Missouri’s Direct Loan Program to receive amounts up to $260.0M for the purpose
of improving, renovating, repairing, replacing and equipping the District’s
Wastewater System. Series 2023E will have principal repayments effective in 2028
(FY29) with a maturity date of 2057 (FY58). The principal and interest on the
bonds are expected to be paid from future wastewater revenues. The District’s
interest rate is 1.26% and is payable in semiannual installments at varying
amounts through 2057 in addition to an annual administrative fee of 0.50%.
As the District incurs approved capital expenditures, MDNR reimburses the
District for the expenditures from the bond proceeds account. The District repays
the loan at an interest rate of 1.26% based on the amount that has been borrowed.
As of the date of this report, the outstanding loan balance was $1,651,000. The
payment requirements to maturity will be determined after the debt is fully issued.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 121
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
AND RELATED RATIOS
June 30, 2023
2014 2015 2016 2017 2018
Total Pension Liability
Service cost 5,409$ 5,253$ 5,107$ 5,157$ 5,239$
Interest on total pension liability 19,901 20,199 20,609 22,079 22,307
Effect of plan changes — — — — —
Effect of economic/demographic gains or (losses)(3,668)(4,577)(883) (4,729) (2,042)
Effect of assumption changes or inputs 6,500 — 11,665 1,667 —
Benefit payments (13,387) (14,475) (15,261) (15,858) (16,912)
Net Change in Total Pension Liability 14,755 6,400 21,237 8,316 8,592
Total Pension Liability - Beginning 275,657 290,412 296,812 318,049 326,365
Total Pension Liability - Ending (a)290,412 296,812 318,049 326,365 334,957
Plan Fiduciary Net Position
Employer contributions 10,676 10,059 10,146 12,328 12,494
Member contributions — — — — —
Investment income net of investment expenses 6,980 (1,888) 11,913 30,496 (12,998)
Benefit payments (13,387) (14,475) (15,261) (15,858) (16,912)
Administrative expenses — — — — —
Net Change in Plan Fiduciary Net Position 4,269 (6,304) 6,798 26,966 (17,416)
Plan Fiduciary Net Position - Beginning 246,247 250,516 244,212 251,010 277,976
Plan Fiduciary Net Position - Ending (b)250,516 244,212 251,010 277,976 260,560
Net Pension Liability - Ending = (a) - (b)39,896$ 52,600$ 67,039$ 48,389$ 74,397$
Fiduciary Net Position as a % of Total Pension Liability 86.26%82.28% 78.92% 85.17% 77.79%
Covered Payroll 44,664$ 43,345$ 42,055$ 41,869$ 39,437$
Net Pension Liability as a % of Covered Payroll 89.32% 121.35% 159.41% 115.57% 188.65%
2019 2020 2021 2022
Total Pension Liability
Service cost 4,902$ 4,832$ 4,477$ 4,555$
Interest on total pension liability 22,818 23,581 23,674 23,612
Effect of plan changes — — — —
Effect of economic/demographic gains or (losses)(1,967)(6,727) 1,564 (2,709)
Effect of assumption changes or inputs 11,911 — 18,788 —
Benefit payments (18,627) (19,273) (20,666) (22,360)
Net Change in Total Pension Liability 19,037 2,413 27,837 3,098
Total Pension Liability - Beginning 334,957 353,994 356,407 384,244
Total Pension Liability - Ending (a)353,994 356,407 384,244 387,342
Plan Fiduciary Net Position
Employer contributions 12,725 13,399 12,144 12,343
Member contributions — — — —
Investment income net of investment expenses 41,543 36,585 31,982 (50,278)
Benefit payments (18,627) (19,273) (20,666) (22,360)
Administrative expenses — — — —
Net Change in Plan Fiduciary Net Position 35,641 30,711 23,460 (60,295)
Plan Fiduciary Net Position - Beginning 260,560 296,201 326,912 350,374
Plan Fiduciary Net Position - Ending (b)296,201 326,912 350,372 290,079
Net Pension Liability - Ending = (a) - (b)57,793$ 29,495$ 33,872$ 97,263$
Fiduciary Net Position as a % of Total Pension Liability 83.67% 91.72% 91.18% 74.89%
Covered Payroll 36,793$ 34,391$ 30,948$ 28,384$
Net Pension Liability as a % of Covered Payroll 157.08% 85.76% 109.45% 342.67%
Schedule of Changes in Net Pension Liability and Related Ratios
In (000's)
Calendar Year Ending December 31,
Notes to Schedule:
1. Changes of Assumptions. The actuarial discount rate and the long-term expected rate of return were changed to 6.25% in 2021. Both rates were changed to 6.75%
in 2020 and 2019, 6.90% in 2018 and 2017 and 7.00% in 2016 and all prior years. The mortality tables utilized in 2022, 2021, 2020 and 2019 were the Pub-2010
General Amount-Weighted Mortality Tables and the effect of changing mortality tables in 2019 is also reflected in the assumption changes. In 2016, the amount
reported as changes of assumptions resulted from changing to the RP-2014 Mortality for Employees and Healthy Annuitants and Disabled Mortality tables,
while the 2014 change resulted primarily from adjustments to the discount rate, long-term expected rate of return, inflation and employee rate increases.
2. This schedule will ultimately present ten years of information when available.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 122
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO EMPLOYEES’ PENSION
PLAN
June 30, 2023
Schedule of Employer Contributions
To Employees' Pension Plan
Fiscal Year Actuarially Contribution Contribution
Ending Determined Annual Deficiency Covered as a % of
June 30, Contribution Contribution (Excess) Payroll Covered Payroll
2015 10,359,139$ 10,359,139$ —$ 46,584,987$ 22.24%
2016 10,096,075 10,096,075 — 44,996,070 22.44%
2017 11,236,828 11,236,828 — 43,818,487 25.64%
2018 12,411,005 12,411,005 — 42,751,918 29.03%
2019 12,609,689 12,609,689 — 38,166,848 33.04%
2020 13,062,014 13,062,014 — 37,757,169 34.59%
2021 12,771,525 12,771,525 — 35,509,063 35.97%
2022 12,243,540 12,243,540 — 32,315,839 37.89%
2023 12,631,498 12,631,498 — 29,487,054 42.84%
Notes to Schedule:
1. This schedule will ultimately present ten years of information when available.
2. Valuation Date: Actuarially determined contribution rates are calculated as of January 1 of the fiscal year in which
the contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method:Entry Age Normal
Amortization Method:Level dollar layered, 20 year periods
Asset Valuation Method:3-year smoothing period
Inflation:2.50%
Salary Increases:4.25%, average, including inflation
Investment Rate of Return:6.25%, net of pension plan investment expense, including inflation for 2023.
6.25%, net of pension plan investment expense, including inflation for 2022.
6.75%, net of pension plan investment expense, including inflation for 2020 and 2021
6.90%, net of pension plan investment expense, including inflation for 2018 and 2019
7.00%, net of pension plan investment expense, including inflation for all years prior
to 2018
Mortality:In the 2023, 2022, 2021 and 2020 actuarial valuations, assumed life expectancies were
calculated using the Pub-2010 General Amount-Weighted Mortality Tables with
generational projection based on Scale MP-2021, 2020 and 2019, respectively. In the 2019,
2018 and 2017 actuarial valuations, assumed life expectancies were calculated using the
RP-2014 Employee and Healthy Annuitant Mortality Table (with generational projections
from 2006 based on the most current MP improvement scale which is updated annually)
and the RP-2014 Disabled Mortality Table. In the 2016 and 2015 actuarial valuations,
assumed life expectancies were calculated using the RP-2000 Healthy Annuitant Mortality
Table and the RP-2000 Disabled Mortality Table.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 123
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY
June 30, 2023
2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost 2,259$ 2,107$ 1,827$ 1,397$ 1,781$ 1,622$
Interest on total OPEB liability 579 553 663 1,017 865 895
Effect of plan changes — — — 86 — —
Effect of economic/demographic gains or (losses) — 534 — (3,887) — —
Changes of assumptions or other inputs (1,650) 542 898 1,926 (987) 438
Benefit payments (1,873) (1,863) (1,631) (1,539) (1,689) (1,600)
Net change in total OPEB liability (685) 1,873 1,757 (1,000) (30) 1,355
Total OPEB Liability - Beginning 26,794 24,921 23,165 24,164 24,194 22,839
Total OPEB Liability - Ending 26,109$ 26,794$ 24,921$ 23,165$ 24,164$ 24,194$
Notes to Schedule:
1. Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period.
The following are the discount rates used in each period:
2022 3.72%
2021 2.06%
2020 2.12%
2019 2.74%
2018 4.10%
2017 3.44%
2016 3.78%
2. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75
to pay related benefits.
3. This schedule will ultimately present ten years of information when available.
4. Contributions to the OPEB plan are not based on a measure of pay so accordingly, no measure of payroll
is presented.
Calendar Year Ending December 31,
Schedule of Changes in Total OPEB Liability
In (000's)
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
Statistical Section
METROPOLITAN ST. LOUIS SEWER DISTRICT
This part of the District’s annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial
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 well-being have changed over time ...................................... 124 – 125
Revenue Capacity
These schedules contain information to help the reader
assess the District’s most significant local revenue
source, the user charge ...................................................................................... 126 – 133
Debt Capacity
These schedules present information to help the reader
assess the affordability of the District’s current levels of
outstanding debt and the District’s ability to issue
additional debt in the future ............................................................................. 134 – 136
Demographic And Economic Information
These schedules offer demographic and economic
indicators to help the reader understand the
environment within which the District’s financial
activities take place ........................................................................................... 137 – 139
Operating Information
These schedules contain service and infrastructure data
to help the reader understand how the information in the
District’s financial report relates to the services the
District provides and the activities it performs ............................................... 140 – 141
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 124
2014 2015 a 2016 a 2017 a 2018 a
Net Position
Net investment in
capital assets 1,845,394$ 1,805,453$ 1,809,386$ 1,876,249$ 1,968,740$
Restricted 142,764 142,445 136,547 135,259 129,579
Unrestricted 279,794 330,218 381,124 379,660 392,997
Total Net Position 2,267,952$ 2,278,116$ 2,327,057$ 2,391,168$ 2,491,316$
2019 a 2020 a 2021 a 2022 a 2023 a
As restated As restated
Net Position
Net investment in
capital assets 2,063,519$ 2,184,736$ 2,299,302$ 2,408,271$ 2,566,272$
Restricted 127,414 97,034 97,920 96,029 106,787
Unrestricted 429,591 488,859 500,804 529,911 508,807
Total Net Position 2,620,524$ 2,770,629$ 2,898,025$ 3,034,211$ 3,181,866$
a Years 2015 to current include a change in the calculation of the net position components which is
not reflected in years prior.
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(000's)
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 125
Income before
Non-operating Capital Capital Change
Fiscal Operating Operating Operating Revenue/ Grants and Grants and in Net
Year Revenues Expenses Income (Expenses) Contributions Contributions Position
2014 265,772,853$ 241,297,635$ 24,475,218$ (3,682,863)$ 20,792,355$ 7,102,480$ 27,894,835$
2015 290,386,589 256,521,148 33,865,441 (13,074,700) 20,790,741 12,996,754 33,787,495
2016 319,857,731 273,095,705 46,762,026 (9,858,327) 36,903,699 12,036,784 48,940,483
2017 333,490,989 275,077,675 58,413,314 (3,916,119) 54,497,195 9,613,746 64,110,941
2018 368,311,477 273,765,206 94,546,271 (6,416,661) 88,129,610 26,077,674 114,207,284
2019 401,121,139 290,717,509 110,403,630 1,426,419 111,830,049 17,377,919 129,207,968
2020 437,992,039 296,739,396 141,252,643 2,461,185 143,713,828 6,390,907 150,104,735
2021 427,151,562 290,461,229 136,690,333 (23,994,999) 112,695,334 14,701,164 127,396,498
2022 458,269,200 297,943,949 160,325,251 (39,427,052) 120,898,199 15,287,418 136,185,617
2023 471,776,807 319,139,680 152,637,127 (14,294,643) 138,342,484 9,312,476 147,654,960
*2021 was restated due to implementation of GASB 87
*2022 was restated due to implementation of GASB 96
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 126
OPERATING REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Licenses,
Fiscal Sewer Service Permits, and
Year Charges, Net Other Fees Other
2014 257,343,344 6,562,607 1,866,902 265,772,853
2015 282,270,193 6,656,831 1,459,565 290,386,589
2016 302,011,893 3,620,240 14,225,598 319,857,731
2017 328,359,526 4,036,362 1,095,101 333,490,989
2018 361,175,224 3,777,200 3,359,053 368,311,477
2019 395,579,903 3,063,458 2,477,778 401,121,139
2020 424,786,543 3,012,368 10,193,128 437,992,039
2021 419,900,364 3,753,797 3,497,401 427,151,562
2022 447,568,689 3,937,368 6,763,143 458,269,200
2023 465,021,831 3,913,395 2,841,581 471,776,807
Total
Operating
Revenues
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 127
Fiscal Employment Materials and Contracted Chemical
Year Costs Utilities Supplies Services Supplies
2014 93,542,222 14,986,387 11,097,857 36,875,093 2,440,843
2015 96,759,245 16,499,964 12,651,008 41,500,864 3,964,165
2016 102,458,574 16,624,434 11,838,551 48,450,272 3,498,796
2017 106,441,619 16,783,922 12,170,738 46,502,512 3,569,449
2018 105,555,411 16,154,516 11,005,087 48,390,986 2,501,712
2019 114,570,104 16,896,093 12,446,227 52,496,518 3,667,207
2020 115,575,521 15,770,882 12,045,016 52,776,346 3,123,434
2021 106,790,672 14,948,574 13,089,179 51,735,701 2,793,263
2022 106,830,879 16,166,983 12,850,178 43,190,182 3,735,229
2023 121,243,362 15,412,814 12,827,405 53,441,284 4,436,252
Fiscal
Year Insurance Other Amortization
2014 2,737,491 5,530,535 167,210,428 74,087,207 n/a 241,297,635
2015 2,791,622 3,713,021 177,879,889 78,641,259 n/a 256,521,148
2016 3,218,041 3,023,288 189,111,956 83,983,749 n/a 273,095,705
2017 3,293,267 5,121,777 193,883,284 81,194,391 n/a 275,077,675
2018 3,371,910 5,459,242 192,438,864 81,326,342 n/a 273,765,206
2019 3,819,449 3,182,068 207,077,666 83,639,843 n/a 290,717,509
2020 4,158,280 5,656,605 209,106,084 87,633,312 n/a 296,739,396
2021 4,410,048 5,199,319 198,966,756 91,352,269 142,204 290,461,229
2022 5,806,596 7,839,230 196,419,277 95,494,079 6,030,593 297,943,949
2023 5,713,653 2,548,666 215,623,436 96,287,564 7,228,679 319,139,679
Note: Balances in FY18 and prior were restated in FY19 to accurately reflect expenses in the
appropriate category. The majority of the changes were increases to Employment Costs and Other and
decreases to Materials and Supplies and Contracted Services. Balances in FY22 were restated in FY23
due to implementation of GASB Statement No 96, Subscription-Based Information Technology
Arrangements. The majority of these changes were a decrease in Contracted Services and increase in
Amortization.
Subtotal,
Expenses
before
Depreciation
Total
Operating
ExpensesDepreciation
OPERATING EXPENSES
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 128
2014 2015 2016 2017 2018
Non-operating revenues
Property taxes levied by the District 27,450,319$ 24,764,324$ 25,671,058$ 32,458,054$ 33,748,932$
Investment income 2,966,549 3,000,591 4,635,866 2,902,624 7,405,957
Rent and other income 302,506 37,321 102,865 106,562 253,799
Total non-operating revenues 30,719,374 27,802,236 30,409,789 35,467,240 41,408,688
Non-operating expenses
Interest expense 25,661,127 27,138,546 28,943,200 31,250,777 36,695,083
Net loss on disposal and sale
of capital assets 5,248,443 1,420,902 324,513 673,044 1,833,908
Non-recurring projects and studies 3,492,667 12,317,488 11,000,403 7,459,538 9,296,358
Legal claims — — — — —
Total non-operating expenses 34,402,237 40,876,936 40,268,116 39,383,359 47,825,349
Net non-operating revenue (expense)(3,682,863)$ (13,074,700)$ (9,858,327)$ (3,916,119)$ (6,416,661)$
2019 2020 2021 2022 2023
As Restated
Non-operating revenues
Property taxes levied by the District 34,107,619$ 35,439,441$ 43,624,302$ 44,479,669$ 48,729,488$
Investment income 16,699,153 16,259,182 1,392,278 (12,513,973) 12,659,955
Rent and other income 301,446 301,631 428,384 439,491 421,374
Total non-operating revenues 51,108,218 52,000,254 45,444,964 32,405,187 61,810,817
Non-operating expenses
Interest expense 33,082,384 36,119,362 56,622,132 57,065,740 57,614,830
Net loss on disposal and sale
of capital assets 970,825 961,476 990,108 1,523,315 1,590,439
Non-recurring projects and studies 15,628,590 12,458,231 11,827,723 13,243,184 16,900,191
Total non-operating expenses 49,681,799 49,539,069 69,439,963 71,832,239 76,105,460
Net non-operating revenue (expense)1,426,419$ 2,461,185$ (23,994,999)$ (39,427,052)$ (14,294,643)$
Note: Interest expense increased in FY21 due to the implementation of GASB Statement No. 89, Accounting for Interest Cost
Incurred Before the End of a Construction Period , resulting in all interest cost incurred in FY21 being charged to interest
expense in the period in which it was incurred. Interest expense increased in FY22 due to the implementation of GASB Statement
No. 96, Subscription-Based Information Technology Arrangements, resulting in all interest cost incurred in FY22 being charged
to enterest expense in the period in which it was incurred.
Fiscal Year
NON-OPERATING REVENUES AND EXPENSES
LAST TEN FISCAL YEARS
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 129
Type of Monthly Charge Unmetered c Residential c Non-Residential
Wastewater User Charge
Base Charge $28.26 $28.26 $28.26
Compliance Charge a
Tier 1 — — $4.71
Tier 2 — — 65.80
Tier 3 — — 140.99
Tier 4 — — 187.98
Tier 5 — — 234.98
Volume Charges
per Ccf b — 5.35 5.35
per room 3.17 — —
per water closet 11.80 — —
per bath 9.84 — —
per separate shower 9.84 — —
Extra Strength Surcharges a
Suspended Solids ("SS") over 300 milligrams per liter — — $320.36
Biochemical Oxygen Demand ("BOD") over 300 — — 860.43
milligrams per liter
Chemical Oxygen Demand ("COD") over 600 milligrams — — 430.22
per liter
Notes:
a Applicable only to non-residential customers, Extra Strength Surcharges priced per ton
b Ccf = Hundred cubic feet
c User charges for certain low income residential users will be 50 percent of the regular user charge
Source: Finance Department
USER CHARGE RATES
As of June 30, 2023
Metered
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 130
Fiscal
Year
Wastewater Charges
Billed1
Wastewater
Charges
Collected2
Collections as a % of
Wastewater Charges
Billed
2014 245,555,628$ 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%
2022 446,532,652 439,461,443 98.42%
2023 463,750,877 455,852,415 98.30%
Note: The table shows the amount of wastewater user charge revenues which were
billed and collected by the District for the last ten fiscal years.
1 Wastewater Charges Billed includes wastewater user charge revenues billed and
accrued for the year.
2 Wastewater Charges Collected includes wastewater user charge revenues collected
for the current year and previous years billings.
USER CHARGE REVENUES
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 131
2014 2015 2016 2017 c 2018
Residential:
Single-Family/Unit 1 421.08$ 434.76$ 491.52$ 535.08$ 591.72$
Multi-Family/Unit 360.36 434.04 490.80 492.00 544.08
Commercial/Industrial:
Service Charge/Unit 2 412.56 348.12 296.80 336.69 363.53
Sanitary Sewer Usage Charge per Ccf 2.50 2.82 3.21 3.59 3.97
Extra Strength Surcharges:
SS over 300 milligrams per liter (price per ton)231.35 244.03 251.88 262.00 269.07
BOD over 300 milligrams per liter (price per ton)620.14 620.14 632.38 654.00 671.63
COD over 600 milligrams per liter (price per ton)310.07 310.07 316.19 327.00 335.82
2019 2020 2021 d,e 2022 2023
Residential:
Single-Family/Unit 1 602.76$ 666.84$ 674.31$ 699.96$ 724.32$
Multi-Family/Unit 602.76 666.84 674.31 699.96 724.32$
Commercial/Industrial:
Service Charge/Unit 2 395.42 428.90 435.83 452.32 466.92
Sanitary Sewer Usage Charge per Ccf 4.40 4.87 4.97 5.17 5.35
Extra Strength Surcharges:
SS over 300 milligrams per liter (price per ton)277.03 283.87 297.97 309.88 $320.36
BOD over 300 milligrams per liter (price per ton)691.50 708.56 786.85 832.28 860.43
COD over 600 milligrams per liter (price per ton)345.76 354.30 393.43 416.14 430.22
Notes:
1 Based on average usage of a typical single-family during the fiscal year listed.
2 Service Charge/Unit for Commercial/Industrial is calculated by using the sum of annualized base charge and compliance charge.
Starting FY 2013, MSD implemented 5-tier Compliance Charge Rate Model, so the Service Charge/Unit is based on calculated weighted
average compliance charge. FY 2013, FY 2014 & FY 2015 Service Charge/Unit were adjusted to reflect the weighted average compliance
charge calculations. Prior to FY 2013, there was only one tier compliance charge.
b Ordinance 13402, effective July 1, 2012, changed wastewater rates through FY 2016.
c Ordinance 14395, effective July 1, 2016, changed wastewater rates through FY 2020.
d Ordinance 15418, effective October 1, 2020, changed wastewater rates through June 30, 2021. The FY21 rates are blended rates due to the
Board approving a delay from July to October for the FY21 rate increase due to the COVID-19 pandemic.
e Ordinance 15669, effective July 1, 2021, changed wastewater rates through FY 2024.
Source: Finance Department
SEWER USER CHARGES (COMPOSITE-ANNUAL)
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 132
Single-Multi-
Fiscal Family Family Non-Total
Year Residential Residential Residential Accounts
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
2022 363,525 41,387 23,940 428,852
2023 364,133 41,561 23,910 429,604
Source: Finance Department
Note: Total accounts listed above are as of June 30 for each fiscal year listed.
NUMBER OF CUSTOMERS BY TYPE
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 133
Customer Amount %
ANHEUSER BUSCH 7,764,290$ 1.65%
WASHINGTON UNIVERSITY 2,360,457 0.50%
CITY OF ST LOUIS 2,251,615 0.48%
SENSIENT COLORS INC 1,824,158 0.39%
MISSOURI-AMERICAN WATER CO 1,642,505 0.35%
SIGMA-ALDRICH 1,349,470 0.29%
ST LOUIS HOUSING AUTHORITY 1,342,704 0.29%
JOST REAL ESTATE LLC 1,223,454 0.26%
ST LOUIS UNIVERSITY 1,220,352 0.26%
THE BOEING COMPANY 1,100,536 0.23%
Subtotal (10 largest) 22,079,541 4.69%
Balance from other customers 448,349,729 95.31%
Grand totals 470,429,270$ 100.00%
Customer Amount %
InBev Anheuser-Busch 5,294,053 2.12%
Mallinckrodt 1,306,741 0.52%
Washington University 1,259,836 0.50%
City of St. Louis 1,233,418 0.49%
Sigma-Aldrich 819,862 0.33%
Saint Louis Zoo 771,623 0.31%
St. Louis University 744,536 0.30%
The Dial Corporation 702,978 0.28%
Sensient Colors Inc. 686,964 0.27%
Trigen-Energy Corp 516,045 0.21%
Subtotal (10 largest) 13,336,056 5.33%
Balance from other customers 236,796,966 94.67%
Grand totals 250,133,022$ 100.00%
User Charges
TEN LARGEST CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2023
User Charges
Fiscal Year 2014
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 134
Unamortized
Fiscal Subordinate Premium, Net
Year Senior Subordinate Direct Loans of Discount Amount Per Capita
2014 740,655,000$ 184,075,000$ 116,090,820$ 82,274,845$ 1,123,095,665$ 852$ 2.84
2015 736,775,000 171,455,000 148,279,465 78,591,961 1,135,101,426 860 2.69
2016 860,460,000 158,765,000 184,141,916 112,035,478 1,315,402,394 997 3.07
2017 995,175,000 145,410,000 210,851,827 124,465,181 1,475,902,008 1,127 3.44
2018 1,167,225,000 131,810,000 227,240,106 166,900,626 1,693,175,732 1,297 3.83
2019 1,145,131,480 117,840,000 247,692,802 159,855,883 1,670,520,165 1,285 3.46
2020 1,176,786,480 103,490,000 278,193,895 131,864,536 1,690,334,911 1,305 3.51
2021 1,262,436,480 88,780,000 315,849,539 162,860,332 1,829,926,351 1,417 3.64
2022 1,318,376,480 73,505,000 347,168,086 166,472,148 1,905,521,714 1,477 3.67
2023 1,277,666,480 58,025,000 350,595,432 162,402,483 1,848,689,395 1,448 3.40
Notes:
Fiscal years 2014 through 2019 "Per Capita" and "As a Share of Personal Income (%)" were restated to conform to the calculation used for
fiscal year 2020.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce, and the U.S. Census Bureau
Income (%)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Total
Revenue Bonds As a Share
of Personal
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 135
Amount of Debt Percentage of Debt
within within
Governmental Unit Debt Outstanding District Boundary District Boundary
City of St. Louis 92,320,000$ 92,320,000$ 100.0%
St. Louis County 59,790,000 59,311,680 99.2
Municipalities 113,612,960 109,347,975 96.2
City of St. Louis School District 164,479,000 164,479,000 100.0
St. Louis County School Districts 1,556,734,590 1,546,219,470 99.3
Fire Districts 140,014,347 130,870,467 93.5
2,126,950,897$ 2,102,548,592$ 98.9%
Total Direct Debt 1,848,689,395
Total Direct and Overlapping Debt 3,951,237,987$
Sources:
City of St. Louis, Office of Comptroller
St. Louis County, Department of Revenue
St. Louis Public Schools, Financial/Treasurer Office
Missouri Department of Education, School Finance
Polled Governments
Polled Fire Districts
Note: Although the District comprises all of the St. Louis City and most of St. Louis County, it does not entirely
match the County's boundaries. The calculation of overlapping debt is based on the percentage that a political
jurisdiction's territory lies within the District's territory. These percentages are weighted against the debt
outstanding thus providing the amount of debt within District Boundary.
COMPUTATION OF OVERLAPPING DEBT
As Of June 30, 2023
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 136
Less:
Operating
Expenses
(excluding
Non- depreciation, Net
Fiscal Operating operating Gross GASB 68 & Available
Year Revenues Revenues Revenues GASB 75) Revenues
2014 264,422,401$ 2,670,333$ 267,092,734$ 153,221,914$ 113,870,820$
2015 288,835,877 2,555,654 291,391,531 163,311,194 128,080,337
2016 318,463,297 3,894,305 322,357,602 168,258,133 154,099,469
2017 333,469,677 2,456,677 335,926,354 168,835,676 167,090,678
2018 368,292,762 6,356,029 374,648,791 163,026,313 211,622,478
2019 401,109,124 14,438,669 415,547,793 170,585,143 244,962,650
2020 437,982,036 14,210,947 452,192,983 175,848,764 276,344,219
2021 427,145,372 5,740,323 432,885,695 180,843,680 252,042,015
2022 458,248,661 4,226,652 462,475,313 170,749,141 291,726,172
2023 471,765,590 13,153,184 484,918,774 186,514,770 298,404,004
Fiscal Coverage
Year Principal Interest Total Ratio
2014 10,037,200$ 34,399,261$ 44,436,461$ 2.6
2015 20,252,200 41,596,192 61,848,392 2.1
2016 29,588,000 44,171,592 73,759,592 2.1
2017 38,026,700 51,333,869 89,360,569 1.9
2018 42,716,800 57,682,698 100,399,498 2.1
2019 50,907,800 63,224,915 114,132,715 2.1
2020 52,587,600 59,932,607 112,520,207 2.5
2021 58,574,100 60,727,474 119,301,574 2.1
2022 61,157,300 62,728,378 123,885,678 2.3
2023 66,334,903 64,521,994 130,856,897 2.3
Fiscal Coverage
Year Principal Interest Total Ratio
2014 4,060,000$ 30,161,408$ 34,221,408$ 3.3
2015 3,880,000 34,472,415 38,352,415 3.3
2016 10,170,000 36,211,319 46,381,319 3.3
2017 15,285,000 42,897,077 58,182,077 2.9
2018 18,365,000 49,558,285 67,923,285 3.1
2019 22,355,000 55,586,363 77,941,363 3.1
2020 23,305,000 52,355,403 75,660,403 3.7
2021 28,575,000 53,110,268 81,685,268 3.1
2022 28,820,000 55,480,060 84,300,060 3.4
2023 31,975,000 57,472,955 89,447,955 3.1
Note: Fiscal years 2015 and 2016 have been adjusted to also exclude the GASB 68 non-cash pension expense. In fiscal
year 2017 the methodology was changed to exclude GASB non-cash transactions from the debt service coverage
calculation. In fiscal year 2021 the methodology was changed to exclude non-cash unrealized gain/loss on investments
from the debt service coverage calculation.
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Senior and Subordinate Debt Service
Senior Debt Service
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 137
Per
Personal Capita Total Median
Fiscal Income Personal Number of Household Labor
Year Populations (millions) 1 Income 1 Households 2 Income 3 City County State Force
2014 1,318,610 39,593 30,026 543,991 55,573 9.6 6.9 6.6 666,200
2015 1,319,295 42,176 31,969 543,945 52,619 7.1 5.5 5.8 703,317
2016 1,319,047 42,845 32,482 542,223 53,156 5.9 4.6 4.9 718,821
2017 1,309,985 42,844 32,705 541,394 53,528 4.7 3.7 4.9 692,644
2018 1,305,352 44,248 33,897 541,832 54,821 4.3 3.3 3.5 699,882
2019 1,299,783 48,287 37,150 542,048 59,063 4.3 3.3 3.3 699,494
2020 1,294,781 48,113 37,159 544,002 59,054 12.0 8.9 7.9 677,261
2021 1,291,665 50,269 38,918 547,936 61,326 7.4 5.3 5.1 687,043
2022 1,290,497 51,927 40,238 553,224 62,724 3.3 2.3 2.4 675,242
2023 1,276,992 54,423 42,618 554,019 66,495 3.9 3.2 2.6 696,239
Notes:
1The data in fiscal years 2013-2019 were restated to conform to the calculation used for fiscal year 2020.
2 The number of households was taken from http://www.census.gov/quickfacts/fact/table/US-MO: 2021 figure is based on
2015-2019 data; 2020 figure is based on 2014-2018 data; 2019 is based on 2013-2017 data; 2018 is based on 2012-2016 data;
2017 is based on 2011-2015 data; 2016 is based on 2010-2014 data; 2015 is based on 2013 data; 2014 is based on 2012 data;
2013 is based on 2010 census.
3 Median Household Income added to this schedule in fiscal year 2020 and all prior years updated to include this data.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce,
and Missouri Economic Resource and Information Center (MERIC)
http://www.bea.gov/regional/reis/scb.cfm
Footnotes- http://www.meric.mo.gov/regional-profiles/st-louis
https://www.census.gov/quickfacts/fact/table/US/PST045217
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment Rate
Saint Louis
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 138
Percentage Percentage
Employer Employees of Total Rank Employees of Total Rank
BJC HealthCare 30,920 5%1 25,039 4%1
Washington University in St. Louis 19,617 3%2 14,091 2%3
Walmart Inc 17,500 3%3 10,550 2%8
Boeing Defense, Space & Security 15,796 2%4 14,868 2%2
Mercy 15,084 2%5 10,946 2%6
SSM Health 14,226 2%6 11,898 2%5
Scott Air Force Base 13,000 2%7 13,000 2%4
Schnuck Markets Inc 8,768 1%8 10,919 2%7
McDonald's Corp 8,415 1%9 9,500 2%9
Archdiocese of St Louis 7,000 1%10 0%
AT&T 0%7,200 1%10
150,326 22%128,011 21%
Total Employment 673,567 100%616,528 100%
Note: Employees are for the St. Louis area which includes several counties not served by the District.
Sources:
St. Louis Business Journal's Book of Lists 2023 as of Q1-2023
St. Louis Business Journal's Book of Lists 2014 as of Q1-2014
PRINCIPAL EMPLOYERS (ST. LOUIS METROPOLITAN AREA)
CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2023 Fiscal Year 2014
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 139
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Administrative 122 129 126 131 129 127 117 121 113 111
Office/Clerical 82 84 82 82 75 73 84 78 79 74
Plant Operation & Laboratory 252 236 226 227 222 228 231 237 259 253
Engineering & Technical 151 155 152 151 150 166 174 176 173 167
Sewer Construction
& Maintenance 328 345 358 360 365 341 349 344 292 287
Total Employees 935 949 944 951 941 935 955 956 916 892
Note: The total employees listed above are as of June 30 for each respective year.
Source: Human Resources Department
EMPLOYMENT LEVEL
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 140
Average Sewage
Fiscal Treatment in Millions
Year of Gallons per Day
2014 273.8
2015 327.5
2016 335.2
2017 328.9
2018 270.1
2019 396.4
2020 367.5
2021 300.6
2022 289.5
2023 291.2
Source: Operations Department
AVERAGE FLOW
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Page 141
2014 2015 2016 2017 2018
Miles of sewers 9,563 9,531 9,700 9,400 9,400
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 533 538 538 593 593
Annual engineering maximum plant capacity
(millions of gallons)194,454 196,279 196,279 216,354 216,354
Amount treated annually (millions of gallons)99,945 119,547 122,366 120,033 96,534
Unused capacity (millions of gallons)94,509 76,732 73,913 96,321 119,820
Percentage of capacity utilized 51% 61% 62% 55% 45%
2019 2020 2021 2022 2023
Miles of sewers 9,400 9,400 9,400 9,400 9,400
Number of treatment plants 7 7 7 7 7
Treatment capacity (MGD) a 593 593 811 811 811
Annual engineering maximum plant capacity
(millions of gallons)216,354 216,354 216,354 216,354 216,354
Amount treated annually (millions of gallons)144,754 134,502 109,195 105,726 106,266
Unused capacity (millions of gallons)71,600 81,852 107,159 110,628 110,088
Percentage of capacity utilized 67%62% 50% 49% 49%
Sources: Operations Department and Engineering Department
Note:
a Million gallons per day - treatment capacity changed in fiscal year 2021 to reflect primary treatment capacity. Prior
years reflect permitted secondary average treatment capacity.
Fiscal Year
Fiscal Year
OPERATING AND CAPITAL INDICATORS
LAST TEN FISCAL YEARS
THE METROPOLITAN ST. LOUIS SEWER DISTRICT2350 Market Street, St. Louis, Missouri 63103www.msdprojectclear.org • 314-768-6200