1 public hearing fiscal year 2016 budget, taxes, user charges and capital improvement &...

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Public Hearing

Fiscal Year 2016 Budget, Taxes, User Charges and Capital

Improvement & Replacement Program

May 14, 2015

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The Charter of the Metropolitan St. Louis Sewer District requires the development and maintenance of a

continuing five-year Strategic and Operating Plan.

SECTION 5.110. Strategic plan. -- A continuing five-year strategic and operating plan for the District shall be adopted on an annual basis by the Board. The strategic and operating plan shall state the District’s objectives for the succeeding five years and include objective targets by which to measure the District’s performance in meeting these objectives.

Strategic Business and Operating Plan

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VISION STATEMENT

Quality Service Always


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MISSION STATEMENT

To protect the public’s health, safety, and water environment by responsibly providing

wastewater and stormwater management.


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VALUES

Integrity – Acting ethically at all times, treating everyone with honesty, fairness, and respect.

Teamwork – Working together to accomplish our mission with open communication, trust, respect, and diversity

Innovation – Embracing continuous improvement and new solutions to achieve excellence.


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VALUES(Continued)

Employees – Developing successful, responsible, and safety conscious employees and acknowledging their contributions.

Customers – Building strong relationships by keeping our commitments, providing excellent service and being transparent in everything we do.


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A. Deliver consistent, high quality customer service;

B. Comply with all legal and regulatory requirements and schedules;

C. Minimize customer rate increases; and

D. Be accountable to the St. Louis community.

GOALS

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STRATEGIES

1. Educate and partner with stakeholders to build support;

2. Manage the District’s costs and revenues to optimize financial impacts;

3. Integrate and improve the District’s business processes;

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STRATEGIES(Continued)

4. Promote appropriate standards through proactive regulatory and legislative involvement;

5. Address customer and regulatory needs through a comprehensive infrastructure management program;

6. Create a learning and business oriented culture based on competency and accountability.

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FY15 Highlights

• MSD Celebrated 60-years of Service to the St. Louis Region

• MSD Received Multiple Awards from NACWA and the GFOA

• MSD Named 2014 Institution of the Year by the St. Louis Minority Business Council

• MSD Continued Implementation of Project Clear

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Key Initiatives for FY16• Continue Project Clear Related Activities

• Complete the Rate Commission process

• Continued Focus on Diversity

• Complete Upgrades to the Billing and Permitting Software Systems

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FY16 District Funded Positions

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969

878

981 981

936956 963

976

FY12 FY13 FY14 FY15 FY16 500

600

700

800

900

1,000

1,100

956 963 976 992 1,000

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FY16 Proposed Budget Expenses

Operat-ing

Budget $209.8 36%

CIRP

$299.5 51%

Debt Service $73.5 13%

Operating Budget

CIRP

Debt Service

($s in millions)

Total = $582.8

Schedule ofResidential User Rates

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Wastewater FY15 FY16%

Change

Effective Date 7/1/14 7/1/15

35.99$ 40.72$ 13%

Stormwater

Effective Date 8/1/10 8/1/10Single Family & Commercial per Month 0.24$ 0.24$ Multi-Family-Charge per Unit per Month 0.18$ 0.18$

Average Monthly Residential Bill (7 Ccf)

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Fiscal Year 2016 General Fund Expenditures

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FY16 General Fund BudgetBy Department

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FY15 FY16 $ %

Civil Service Commission 10,000$ 10,000$ -$ 0.0%Rate Commission 512,200 75,000 (437,200) -85.4%Secretary-Treasurer (includes Board of Trustees) 1,656,522 3,384,171 1,727,649 104.3%Executive Director 1,285,215 1,360,646 75,431 5.9%General Counsel 2,558,204 2,419,474 (138,730) -5.4%Human Resources 12,850,462 10,067,675 (2,782,787) -21.7%Finance 22,537,450 20,619,396 (1,918,054) -8.5%Information Systems 13,248,538 12,924,533 (324,005) -2.4%Engineering 24,119,366 25,011,220 891,854 3.7%Operations 104,001,707 106,673,452 2,671,745 2.6%

Total Departments 182,779,663$ 182,545,566$ (234,097)$ -0.1%- 952,728 952,728

Total General Fund Operating Budget 182,779,663$ 183,498,294$ 718,631$ 0.4%

Energy Loan Debt Service 35,922 35,931 9

182,815,585$ 183,534,225$ 718,640$ 0.4%

Non-operating Other (1) 560,000 1,500,000 940,000

Total 183,375,585$ 185,034,225$ 1,658,640$ 0.9%

(1) FY15 - Hyperion Budget System Upgrade; FY16 - Data Center Colocation

CHANGE

Incrementals

Total General Fund Operating Budget with Energy Loan

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Personnel Services

56%

Supplies10%

Capital Outlay

2%

Utilities9%

Contractual Services

23%

Chart Title

FY16 General Fund Operating Budget by Expense Category

Personnel Services $103.0

Supplies 17.6

Utilities 17.1

Contractual Services 41.8

Capital Outlay 4.0

TOTAL $183.5

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($s in millions)

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Comparison:

FY16 Budget to 2011 Rate Report

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O&M Expense

Fiscal Year RC Budget Projections Change%

Change

2013 $ 166,212,200 $ 156,798,447 $ (9,413,753) -5.7%

2014 174,817,600 169,505,152 (5,312,448) -3.0%

2015 184,977,900 184,960,817 (17,083) 0.0%

2016 190,120,000 192,697,291 2,577,291 1.4%

4 Year Total $ 716,127,700 $ 703,961,707 $ (12,165,993) -1.7%

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Fiscal Year 2016

Debt Service

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FY16 Debt Service ($s in millions)

Outstanding Debt Outstanding Debt Outstanding Debt

Issued Service Issued Service Issued Service

Amount Date $ Expense $ Expense $ Expense %

$500 Feb 2004 500.0$ 22.7$ 500.0$ 28.9$ -$ 6.2$ 27.3%

$275 Aug 2008 275.0 13.8 275.0 15.8 - 2.0 14.5%

$945 Jun 2012 502.0 30.2 682.0 28.8 180.0 (1.4) -4.6%

Total Current 1,277.0$ 66.7$ 1,457.0$ 73.5$ 180.0$ 6.8$ 10.2%

FY15 FY16 Change

Authorization

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Comparison: FY16 Budget to 2011 Rate Report

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Debt Service

Fiscal Year RC Budget Projections Change % Change

2013 $58,051,000 $53,055,659 $ (4,995,341) -8.6%

2014 $72,338,500 $44,433,563 $ (27,904,937) -38.6%

2015 $84,504,100 $63,347,354 $ (21,156,746) -25.0%

2016 $96,885,700 $73,481,319 $ (23,404,381) -24.2%

4 Year Total $311,779,300 $234,317,895 $ (77,461,405) -24.8%

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Fiscal Year 2016

Capital Improvement & Replacement Program

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FY 2016 Final CIRP Program Summary

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Type of Project Number Budget

Wastewater Construction 99 195,334,000

Wastewater Engineering 82 69,341,000

Stormwater Construction 26 5,580,500

Stormwater Engineering 6 1,450,000

New Project Appropriations Subtotal: 213 271,705,500

Continued Wastewater 10 24,650,000

Continued Stormwater 5 1,668,000

Continued Project Appropriations Subtotal: 15 26,338,000

PROJECT APPROPRIATION TOTALS: 228 298,043,500

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FY 2016 CIRPFinal vs. Draft Summary

• 213 New vs. 217 New in draft

• $271,705,500 vs. $270,738,000 in draft

New Projects

Continued Projects

• 15 Continued vs. 16 Continued in draft

• $26,338,000 vs. $28,150,000 in draft

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51%9%

FY 2016 CIRPNew Wastewater Projects

15%

• DC-02 & DC-03 Sanitary Relief (Brentwood Blvd to Conway Rd)

Phase I. Consultant construction phase services for Phase I of this

project, construction of 4,200 feet of sewer.

• DC-02 & DC-03 Sanitary Relief (Brentwood Blvd to Conway Rd)

Phase III. Design services for Phase III of the sanitary relief project,

construction of 12,700 feet of sewer.

• Deer Creek Sanitary Tunnel (Clayton Rd to RDP). Additional design

for the Linden sewer connection to the tunnel, including sewer

extension, diversion structure, and drop structure.

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51%9%

FY 2016 CIRPNew Wastewater Projects (cont.)

15%

• Missouri River WWTF Secondary Treatment Expansion (Mitigation

Credit). Mitigation required by Maryland Heights to compensate for

plant expansion into floodplain, to be accomplished via cooperative

agreement with the Howard Bend Levee District

• Missouri River WWTF Secondary Treatment Electrical / Mechanical

Modifications. Construction of various electrical and mechanical

modifications for code compliance, safety, and operational

efficiency.

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FY 2016 CIRP Continued Projects

Wastewater

• Coordination With Others 5• Easement Acquisition/ Condemnation 3• Scope Change 2

Stormwater

• Easement Acquisition/ Condemnation 5

Total 15

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Type of Project Number Budget

Wastewater 25 $111,145,000

Stormwater 17 2,816,000

Total: 42 $113,961,000

FY 2016 CIRP Contingency Projects

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51%9%

FY 2016 CIRP New Wastewater Contingency Projects

15%

• Bridgevale I/I Reduction (Bridgevale Ave and Lakeview Ave).

Removal of private I/I sources from the sanitary sewer.

• Chapel Hill I/I Reduction (Mattis Rd and Venarde Dr).


• FF-16 Schuetz – Meadowside to Page Sanitary Relief.

Construct 9,900 feet of 27-inch to 36-inch sanitary relief

sewers.

• Private Inflow and Infiltration Reduction Program. Continue

program to remove private I/I sources from the sanitary sewer.

This is a supplemental appropriation.

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51%9%

FY 2016 CIRP New Wastewater Contingency Projects (continued)

15%

• Sappington Creek I/I Reduction (Gravois Rd and Sappington

Rd). Removal of private I/I sources from the sanitary sewer.

• Sterling Place Separate Sewer I/I Removal. Removal of private

I/I sources from the sanitary sewer.

• Trampe (Partial) I/I Reduction (Castilon Ave and Trampe Ave).


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STORM MAP

• Continue Consent Decree compliance efforts• Remove 11 sanitary sewer overflow structures• Begin construction of the Maline CSO Storage Facility• Address building backups and system surcharging• Rehabilitate existing infrastructure• Continue CSO Volume Reduction Green Infrastructure

Program• Characterization and assessment of 140 miles of

sewers and related structures• Address stormwater issues at 88 locations

Capital Program Results for FY 2016

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Wastewater Program Appropriation Projectionsover current Rate Period – FY 2013 to 2016 (Sanitary Replacement and General Funds)

• Program savings through scope optimization, design efficiencies, and favorable bid results have enabled the program to absorb changes without negatively impacting rate payers.

• The 4 year program is expected to remain within and under budget.• MSD anticipates meeting all Consent Decree and wastewater

regulatory requirements expected through FY 2016.

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FY2011 Uninflated

Budget RC Budget Projections Change % Change2013 $ 255,819,000 $216,549,000 $184,451,218 -$32,097,782 -14.8%2014 $ 203,777,000 $241,968,000 $214,034,844 -$27,933,156 -11.5%2015 $ 227,534,500 $245,267,000 $249,570,475 $4,303,475 1.8%2016 $ 197,607,750 $267,815,000 $277,650,000 $9,835,000 3.7%

4 Year Total 884,738,250$ $971,599,000 $925,706,537 -$45,892,463 -4.7%

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Fiscal Year 2016 Sources and Uses of Funding

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FY16 Sources and Uses of Funding($s in millions)

Sources of Funding Uses of Funding

OPER DEBT CIRP TOTAL

Wastewater User Charges $216.4 $73.5 $21.3 $311.1

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FY16 Wastewater User Charges

Type of Charge Wastewater User Charge

Base Charge $/mo. $18.25

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Unmetered (volume)

Per Room $/mo. 2.09

Per Water Closet $/mo. 7.83

Per Bath/Shower $/mo. 6.53

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Unmetered (volume)

Per Room $/mo. 2.09

Per Water Closet $/mo. 7.83

Per Bath/Shower $/mo. 6.53

Metered Volume $/ccf 3.21

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Commercial/Industrial Customers Only. Tier based on number of sampling & test points.

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Compliance Charge Wastewater User Charge

Tier 1 $ 2.15

Tier 2 44.50

Tier 3 94.80

Tier 4 139.00

Tier 5 183.15

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Extra Strength Surcharge Wastewater User Charge

Suspended Solids $/ton $251.88

greater than 300 mg/l

Commercial/Industrial Customers Only.

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Suspended Solids $/ton $251.88 greater than 300 mg/l

BOD’s $/ton $632.38 greater than 300 mg/l


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Suspended Solids $/ton $251.88 greater than 300 mg/l

BOD’s $/ton $632.38

greater than 300 mg/l

COD’s $/ton $316.19 greater than 600 mg/l


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Stormwater User Charges 0.0 0.0 1.4 1.4

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FY16 Stormwater User Charges

Type of Charge Stormwater User Charge

Single Family & Commercial

24 ¢ per account

Multi-unit Residential 18 ¢ per unit per account

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Revenue Bonds 0.00 8.7 191.3 200.0

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FY16 Sources and Uses of Funding





Revenue Bonds 0.0 8.7 191.3 200.0

Taxes 15.6 0.0 8.9 24.6

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($s in millions)

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Revenue Bonds 0.0 8.7 191.3 200.0

Taxes 15.6 0.0 8.9 24.6

Investment Income & Other 3.2 0.3 18.8 22.3*

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* Includes $17.1 million interfund revenue for Stormwater services.

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Revenue Bonds 0.0 8.7 191.3 200.0

Taxes 15.6 0.0 8.9 24.6

Investment Income & Other 3.2 0.3 18.8 22.3

Fund Balance (25.5) (9.0) 57.9 23.4*

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* (Increase) decrease in fund balance

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Revenue Bonds 0.0 8.7 191.3 200.0

Taxes 15.6 0.0 8.9 24.6

Investment Income & Other 3.2 0.3 18.8 22.3

Fund Balance (25.5) (9.0) 57.9 23.4

TOTAL $209.8 $73.5 $299.5 $582.8

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Fiscal Year 2016 Tax Levies

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District-Wide Tax Levies

2015TAX RATE

ADMINISTRATIVE TAX:CityCounty

Total Administrative Tax

STORMWATER TAX: City County (Original MSD Boundaries)

Total Stormwater Tax

TOTAL DISTRICT-WIDE TAX

6.7¢ per $1006.7¢ per $100

$ 2,813,307 7,666,902$ 10,480,208

$ 15,633,406

1.9¢ per $1001.9¢ per $100

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2015TAX LEVY

$ 808,615 4,344,583$ 5,153,198

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Recommended OMCI Tax Levies 2015

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SUBDISTRICTS 2015 Proposed Tax Levy

Residential Agricultural Commercial Personal Property

Tax Rate Per $100 Assessed Value

BLACK CREEK $ - 0.0000 0.0000 0.0000 0.0000 CLAYTON-CENTRAL $ - 0.0000 0.0000 0.0000 0.0000 COLDWATER CREEK $ 1,817,113 0.1000 0.0720 0.1000 0.1000 CREVE COEUR $ - 0.0000 0.0000 0.0000 0.0000 DEER CREEK $ 3,496,241 0.0800 0.0470 0.0850 0.0930FOUNTAIN CREEK $ - 0.0000 0.0000 0.0000 0.0000 GRAVOIS CREEK $ 1,352,063 0.0800 0.0800 0.0820 0.0860 LORETTA-JOPLIN $ 21,638 0.0820 0.0000 0.0600 0.0900 MALINE CREEK $ 646,147 0.0990 0.1000 0.1000 0.1000 MERAMEC RIVER BASIN $ - 0.0000 0.0000 0.0000 0.0000 MISSOURI RIVER-BONFILS $ - 0.0000 0.0000 0.0000 0.0000 NORTH AFFTON AREA $ 59,588 0.0860 0.0000 0.0600 0.0850 SEMINARY BRANCH - RDP $ 223,879 0.0710 0.0000 0.0780 0.0760 SHREWSBURY - RDP $ 19,929 0.0660 0.0000 0.0660 0.0820 SUGAR CREEK $ 265,597 0.0530 0.0000 0.1000 0.0690 UNIV. CITY BRANCH - RDP $ 846,737 0.0900 0.0000 0.0990 0.0940 WATKINS CREEK $ 149,541 0.1000 0.0930 0.1000 0.0990 WELLSTON $ 31,171 0.0950 0.0000 0.1000 0.1000

TOTAL $ 8,929,644

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