Public Hearing. Fiscal Year 2019 Budget, Taxes, User Charges and Capital Improvement & Replacement Program May 10, 2018

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1 Public Hearing Fiscal Year 2019 Budget, Taxes, User Charges and Capital Improvement & Replacement Program May 10, 2018

2 Strategic Business and Operating Plan The Charter of the Metropolitan St. Louis Sewer District requires the development and maintenance of a continuing five-year Strategic and Operating Plan. SECTION 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. 2

3 Strategic Business and Operating Plan VISION STATEMENT Quality Service Always 3

4 Strategic Business and Operating Plan MISSION STATEMENT To protect the public s health, safety, and water environment by responsibly providing wastewater and stormwater management. 4

5 Strategic Business and Operating Plan 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. 5

6 Strategic Business and Operating Plan 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. 6

7 GOALS 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. 7

8 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; 8

9 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. 9

10 FY18 Highlights MSD Received Multiple Awards from NACWA and the GFOA Diversity by the Numbers Stormwater Capital Rate Proposal 1 0

11 Key Initiatives for FY19 Update Disparity Study Stormwater Capital Rate Timeline Wastewater Rate Proposal for fiscal years

12 FY19 District Funded Positions 1,100 1, ,000 1,019 1, , FY15 FY16 FY17 FY18 FY

13 FY19 Proposed Budget Expenses ($s in millions) Debt Service $ % Total = $714.1 Operating Budget $ % CIRP $ % Operating Budget CIRP Debt Service 1 3

14 Schedule of Residential User Rates Effective Date 7/1/17 7/1/18 Average Monthly Residential Bill (7 Ccf) $ $ % 1 4

15 Fiscal Year 2019 General Fund Expenditures 1 5

16 FY19 General Fund Budget By Department CHANGE FY19 FY18 $ % Civil Service Commission $ 10,000 $ 10,000 $ - 0.0% Rate Commission 595, ,304 1, % Secretary-Treasurer (includes Board of Trustees) 3,318,517 1,899,735 1,418, % Executive Director 3,596,589 3,403, , % General Counsel 3,153,946 2,601, , % Human Resources 8,286,447 8,799,956 (513,509) -5.8% Finance 20,977,478 20,300, , % Information Systems 14,927,653 13,963, , % Engineering 26,834,837 26,063, , % Operations 115,483, ,280,592 3,203, % Total Departments $ 197,184,947 $ 189,917,640 $ 7,267, % Incrementals 2,212,765 (0) 2,212,765 Total General Fund Operating Budget $ 199,397,712 $ 189,917,639 $ 9,480, % Energy Loan Debt Service 36,000 35,900 (100) Total General Fund Operating Budget with Energy Loan $ 199,433,712 $ 189,953,539 $ 9,479, % 1 6

17 FY19 General Fund Operating Budget by Expense Category ($s in millions) Contractual Services 23% Personnel Services $113.1 Supplies 16.5 Utilities 17.6 Contractual Services 45.3 Capital Outlay 6.9 TOTAL $199.4 Personnel Services 57% Supplies 8% Utilities 9% Capital Outlay 3% 1 7

18 Comparison: Current Projection to Rate Plan O&M Expense Fiscal Year Rate Plan Projection Change % Change 2017 $ 203,302,999 $ 189,757,428 $ (13,545,571) -6.7% ,390, ,656,379 (18,733,857) -8.9% ,218, ,124,853 (3,093,340) -1.4% ,119, ,641,228 (5,478,209) -2.5% 4 Year Total $ 848,030,866 $ 807,179,888 $ (40,850,978) -4.8% 1 8

19 Fiscal Year 2019 Debt Service 1 9

20 FY19 Debt Service ($s in millions) Bond Authorizations Authorization Amount Date Issued $ 500 Feb 2004 $ 500 $ 275 Aug 2008 $ 275 $ 945 Jun 2012 $ 945 $ 900 Apr 2016 $ 153 Remaining Authorization $ 748 Debt Service Expense FY18 FY19 Variance Principal $ 45.1 $ 51.7 $ 6.6 Interest $ 59.2 $ 66.4 $ 7.2 Agency Fee $ 4.8 $ 4.0 $ (0.8) Total Debt Service Expense $ $ $

21 Comparison: Current Projection to Rate Plan Debt Service Fiscal Year Rate Plan Projections Change % Change 2017 $95,140,966 $89,414,453 $ (5,726,513) -6.0% 2018 $109,595,199 $101,997,735 $ (7,597,464) -6.9% 2019 $126,382,173 $120,364,058 $ (6,018,115) -4.8% 2020 $146,103,295 $138,328,850 $ (7,774,445) -5.3% 4 Year Total $477,221,633 $450,105,096 $ (27,116,537) -5.7% 2 1

22 Fiscal Year 2019 Capital Improvement & Replacement Program 2 2

23 FY 2019 Final CIRP Program Summary Type of Project Number Budget Wastewater Construction ,438,000 Wastewater Engineering 81 65,602,000 Stormwater Construction 39 19,436,000 Stormwater Engineering 7 5,230,000 New Project Appropriations Subtotal: ,706,000 Wastewater Continued 6 32,600,000 Stormwater Continued 2 1,330,000 Continued Project Appropriations Subtotal: 8 33,930,000 PROJECT APPROPRIATION TOTALS: ,636,

24 FY 2019 CIRP Final vs. Preliminary Summary New Projects 188 New vs. 188 New in preliminary $347,706,000 vs. $362,113,000 in draft Continued Projects 8 Continued vs. 10 Continued in preliminary $33,930,000 vs. $35,150,000 in draft 2 4

25 FY 2019 CIRP New Projects FEE FEE TRUNK SEWER RELIEF (SKME-002, LONG LEAF CIRCLE TO THAMES COURT). Design services for the construction of 2,900 feet of 21-inch diameter sanitary sewer. 15% 9% 51% LOWER MERAMEC WWTF CORROSION AND HUMIDITY CONTROL IMPROVEMENTS. Additional design costs needed for correction of corrosion problems at the Lower Meramec treatment facility. SUMMERHAVEN DRIVE #11656 STORM SEWER. Construct 375 feet of 12-inch to 24-inch storm sewer. 2 5

26 FY 2019 CIRP Continued Projects Wastewater Coordination with others 4 Construction phasing / scheduling 2 Stormwater Scope Change/Design Revisions 2 Total 8 2 6

27 FY 2019 CIRP Contingency Projects Type of Project Number Budget Wastewater 26 $154,256,000 Stormwater 12 7,398,000 Total: 38 $161,654,

28 FY 2019 CIRP New Contingency Projects FORDER SANITARY INTERCONNECTION (FORDER RD TO RINGER RD). Construct 100 feet of 10-inch sanitary sewer. MACKENZIE I/I REDUCTION (RESURRECTION CEMETERY, 15% WEHNER 9% PARK, KENRICK SEMINARY, AND 51% NERINX HALL). Perform private I/I reduction at 78 properties. RIVERPORT 6 PUMP STATION (P-781) REPLACEMENT. Rehabilitate Pump Station P-781. STONINGTON PLACE SANITARY RELIEF (CLAYTON RD TO GEORGIAN ACRES ST). Construct 238 feet of 12-inch sanitary sewer. 2 8

29 FY 2019 CIRP New Contingency Projects CHERRY TREE LANE STORM IMPROVEMENT. Construct 1,190 feet of 12-inch to 36-inch storm sewer, and concrete box culvert. KAYSER AVE. - WALLER AVE. STORM SEWER. Construct % feet of 12-inch 9% to 15-inch storm sewer. 51% 2 9

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31 Capital Program Benefits for FY 2019 Continue Consent Decree compliance efforts Continue CSO Volume Reduction Green Infrastructure Program STORM MAP Address building backups and system surcharging Remove 11 sanitary sewer overflow structures Construct 80,000 feet of sanitary and storm sewers Continue construction of the Deer Creek Sanitary Tunnel Continue construction of the Maline Creek CSO Storage Facility Address stormwater issues at 134 locations 3 1

32 Fiscal Year 2019 Sources and Uses of Funding 3 2

33 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $

34 FY19 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $

35 FY19 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $23.83 Unmetered (volume) Per Room $/mo Per Water Closet $/mo Per Bath/Shower $/mo

36 FY19 Wastewater User Charges Type of Charge Wastewater User Charge Base Charge $/mo. $23.83 Unmetered (volume) Per Room $/mo Per Water Closet $/mo Per Bath/Shower $/mo Metered Volume $/ccf

37 FY19 Wastewater User Charges Compliance Charge Wastewater User Charge Tier 1 $ 3.05 Tier Tier Tier Tier Commercial/Industrial Customers Only. Tier based on number of sampling & test points. 3 7

38 FY19 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $ greater than 300 mg/l Commercial/Industrial Customers Only. 3 8

39 FY19 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $ greater than 300 mg/l BOD s $/ton $ greater than 300 mg/l Commercial/Industrial Customers Only. 3 9

40 FY19 Wastewater User Charges Extra Strength Surcharge Wastewater User Charge Suspended Solids $/ton $ greater than 300 mg/l BOD s $/ton $ greater than 300 mg/l COD s $/ton $ greater than 600 mg/l Commercial/Industrial Customers Only. 4 0

41 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $403.3 Revenue Bonds

42 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $403.3 Revenue Bonds Taxes

43 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $403.3 Revenue Bonds Taxes Investment Income & Other

44 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $403.3 Revenue Bonds Taxes Investment Income & Other Fund Balance * * (Increase) decrease in fund balance 4 4

45 FY19 Sources and Uses of Funding ($s in millions) Sources of Funding Uses of Funding OPER DEBT CIRP TOTAL Wastewater User Charges $161.5 $120.3 $121.5 $403.3 Revenue Bonds Taxes Investment Income & Other Fund Balance * TOTAL $210.4 $122.1 $381.6 $

46 Fiscal Year 2019 Tax Levies 4 6

47 District-Wide Tax Levies ADMINISTRATIVE TAX: City County Total Administrative Tax 2018 TAX RATE 1.88 per $ per $ TAX LEVY $ 805,237 4,574,514 $ 5,379,751 STORMWATER TAX: City County (Excluding Levee Districts) Total Stormwater Tax TOTAL DISTRICT-WIDE TAX 9.71 per $ per $100 $ 4,158,965 22,793,461 $ 26,952,426 $ 32,332,

48 Recommended OMCI Tax Levies 2018 SUBDISTRICTS 2018 Proposed Tax Levy Residential Agricultural Commercial Personal Property Tax Rate Per $100 Assessed Value BLACK CREEK $ CLAYTON-CENTRAL $ COLDWATER CREEK $ CREVE COEUR $ DEER CREEK $ FOUNTAIN CREEK $ GRAVOIS CREEK $ LORETTA-JOPLIN $ MALINE CREEK $ MERAMEC RIVER BASIN $ MISSOURI RIVER-BONFILS $ NORTH AFFTON AREA $ SEMINARY BRANCH - RDP $ SHREWSBURY - RDP $ SUGAR CREEK $ UNIV. CITY BRANCH - RDP $ WATKINS CREEK $ WELLSTON $

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