MSD

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MSD

• Wastewater Stormwater
• Rate Proposal
• And
• Expanded Low Income Program

Presentation to St. Louis Clergy Coalition
June 13, 2007
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Current Wastewater Rates

• Prior Rate increase 60 over 2002-2005
• Current Average Single Family Bill 22.38 per
  month
  
• Basis
• - Metered winter water use County.
• - Water Division billing attributes City.

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Wastewater Issues

• 3.7 Billion regulatory needs (2002 dollars)
• Combined sewer long term control plan
• Separate sewer capacity requirements
• EPA/MDNR Pressure
• Water quality impacts on area streams.

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Wastewater Program Features

• Increase wet weather capacity at plants
• Develop an understanding of system defects
• Reduce extraneous water entering sewers from
  inappropriate connections, defects, etc.
  
• Reduce combined sewer overflow events
• Eliminate constructed overflows in separate
  system.
  

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Proposed Wastewater Rate

• Fund next five years on a Pay-As-You-Go basis
• Average Residential monthly rates
• - 22.38 per month FY 2007(Current)
• - 25.74 per month FY 2008(15.0 increase)
• - 28.89 per month FY 2009(12.2 increase)
• - 32.06 per month FY 2010(10.9 increase)
• - 34.97 per month FY 2011( 9.1 increase)
• - 36.79 per month FY 2012( 5.2 increase)
• Based on average usage of 8 ccf per month

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Why a Pay-As-You-Go Approach?

• Regulatory picture is incomplete
• Saves bonding capacity for future needs
• Saves approximately 400M in interest
• Continues progress at a tapered rate
• Maintains progress toward regulatory goals
• Brings St. Louis to appropriate rates at the
  lowest cost (avoids added interest costs).

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Proposed Wastewater Capital Improvement
Replacement Program
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Current Stormwater Rates/Taxes

• .24 per month, Flat Fee
• .02 Administrative Tax
• .05 Stormwater Tax
• OMCI Taxing Subdistricts
• 23 subdistricts.
• Up to .10 per 100 assessed value.

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Current Subdistricts
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Stormwater Issues

• 2,500 miles of infrastructure
• Little maintenance is funded
• Wide variety of customer desires
• User fee is inequitable
• 85 of our storm water customer complaints are
  infrastructure issues.

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Proposed Basic Stormwater Services

• Pipe and structure repair
• Inlet cleaning
• Removal of creek obstructions
• Concrete channel cleaning/repair
• Creek inspections.

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Proposed Enhanced Services

• New storm water systems
• Erosion Control
• Residential Detention basin maintenance
• Creek maintenance
• Back yard ponding.

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Proposed Stormwater Solution Features

• Addresses upkeep of existing systems
• Crafts an equitable rate structure
• Ties user fees to system use
• Provides for regulatory requirements
• Provides for enhanced service, if desired
• Considers green development measures.

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Proposed Stormwater Charge Part 1 - Base Service
Charge

• Covers Operations Repair of existing systems
• Covers Regulatory work required of MSD
• Ramped over 5 years, .12-.19/100 sq. ft. of
  impervious area per month
  
• Applies to all parcels, including tax-exempt, in
  MSD service area
  
• Public streets are not included
• Funds the services MSD must provide.

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Proposed Stormwater Charge Part 2 - Enhanced
Services

• Uses subdistrict taxing authority included in
  Charter
  
• Recommends 5 large watershed based subdistricts
• Allows for public input on desired service
  level
  
• Allows tax levies up to .10/100 assessed
  valuation
  
• Tax levies voter approved by subdistrict
• Services are tailored to subdistrict desires.

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Proposed Subdistricts
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Proposed Stormwater Charge Part 2 - Enhanced
Services
Taxing Cost Impact

• Maximum Subdistrict tax 10 / 100 Assessed
  Property Value. (per MSD Charter). (1)
  
• Maximum resulting revenue approximately 24M /
  year.
  
• Impact Examples Based on Assessed Value of
  150,000.
  

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Proposed Typical Stormwater Rates

• Average Residential Customer monthly cost
• FY07 0.24 (Current Flat Rate)
• FY08 3.00 1,150 Increase
• FY09 4.33 44 Increase
• FY10 4.57 6 Increase
• FY11 4.69 3 Increase
• FY12 4.76 1.5 Increase
• Based on 2,500 average sq. ft. Impervious Area
• Approximate Commercial Customer monthly costs
• 11,300 sq.ft. 23,000 sq.ft. 43,700
  sq.ft.
  
• FY07 0.24 0.24 0.24
• FY08 13.56 27.60 52.44
• FY09 19.55 39.79 75.60
• FY10 20.66 42.04 79.88
• FY11 21.19 43.13 81.94
• FY12 21.53 43.82 83.25

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Transition of Stormwater Funding Sources
Projected as of 2012
(1)
(1) Includes Construction, Plan and Submittal
fees and Rental Income.
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Proposed Typical Monthly Bill Comparison
Single Family (S/F) Based on Ccf volume of 8
and Impervious area of 2,500 sq. ft.
Multi Family (M/F) Based on Ccf volume of 40
and Impervious area of 2,700 sq. ft.
Commercial (Comm) Based on normal strength with
Ccf volume of 100 and Impervious are of 23,000
sq. ft.
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Process

• Presented to MSD Finance Committee 12/12/06
• Presented to MSD Stakeholder Relations Committee
  12/21/06
  
• Presented to City and County Officials - December
  2006
  
• Presentation to full MSD Board January/February
  2007
  
• Submitted to MSD Rate Commission March 2007
• MSD Rate Commission Recommendation due to Board -
  August 13, 2007
  
• Implement rate change December 2007 (reflected on
  January 2008 sewer bills)
  
• Watershed Taxing District Proposals implemented
  as ready.
  

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Metropolitan St. Louis Sewer District

• Expanded Low-Income Program

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What is the Low-Income Program?

• MSD is offering an expanded Low Income Sewer
  Assistance Program to qualified single family
  home owners who receive sewer service from MSD.
  
• Eligible homeowners receive a rate reduction
  equal to 50 of their current charges for
  wastewater and/or storm water services on their
  monthly bill.

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Who is Eligible?

• Income eligible customers - Total annual income
  is less than 125 of the Health Human Services
  (HHS) most recent poverty guidelines by size of
  household.
• 12,763 for one-person household
• 43,213 for eight-person household
• Applicants liquid assets/real estate are less
  than 3,000. (excludes house of residence)
  
• Applicant owns and resides in property
  full-time.
  
• Applicants property is a single family
  residence.
  
• Service name on sewer account must be name of
  low-income applicant or that of his/her spouse.
  

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How do customers apply?

• Complete an application and submit to MSDs
  Accounts Receivable Department (A/R).
  
• - To attention of Richard Brown, Account
  Associate
  
• (768-6333)
• Rate reduction for qualified applicants shall
  begin on the first full month following
  approval.
  
• No rate reduction will be provided for partial
  months.
  
• All current low-income recipients (prior to
  01/07) were required to reapply in March 2007 to
  ensure eligibility.
  

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How do Customers maintain eligibility in
Program?

• Eligibility must be established annually.
• MSD automatically sends renewal applications 60
  days prior to expiration date.
  
• Applications found ineligible reduction removed
  month following date of ineligibility.
  
• Rate reduction is non-transferable.
• Customer must remain current on all future
  reduced rate charges.
  
• New applicants with prior past due balance must
  establish payment arrangements.
  

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Implementation Timeline

• December 2006 New Ordinance Adopted
• January 2007
• New Program Implemented - Beta testing started
  with all current low-income customers.
  
• New applications available through website and
  Districts Call Center.
  
• July 2007
• Full promotion of program begins
• Information on program to be included with annual
  bill insert mailing.
  
• Collaborate with other assistance agencies to
  distribute brochures and promote participation in
  program.
  

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Questions/Answers
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