Rate Commission – Backup

“Let Your Voice Be Heard!” This past March, MSD staff submitted a rate proposal to the MSD Rate Commission. The proposal included increases in wastewater rates and additional funding for stormwater. While the Rate Commission reviewed the technical aspects of staff’s proposal, public feedback was formally gathered through Public Hearings. These Public Hearings were held for the sole purpose of receiving input from the general public about the proposed rate increases.

Please read on to learn more about the Rate Commission process, the proposal itself, and how the public provided feedback about the proposed rate increases.

You can share your input by leaving a message at 314-335-2028, emailing ratecommission@ahcconsulting.com, or messaging us on Twitter @RateCommission. Also, written correspondence may be addressed to the Rate Commission at: MSD Rate Commission, c/o The Metropolitan St. Louis Sewer District, 2350 Market Street, St. Louis, MO 63103.

Public hearings were held for community members to hear firsthand from MSD staff about proposed rate increases, ask questions of MSD staff, and provide feedback to the Rate Commission. The meetings were open to the public and conducted in accordance with Missouri Sunshine Law. Additionally, for those who wanted to attend a Public Hearing near their residence but did not have transportation, van service was provided by calling 314.335.2028.

Overview of rate proposal

Rate Proposal Slides 22 June 23Rate Commission public hearings:

City of Creve Coeur, June 21 – Click here to watch the recording on Youtube

City of Brentwood, June 22 – Click here to watch the recording on Youtube or view below

City of Bridgeton, June 26 – Click here to watch the recording on Youtube

Metropolitan St. Louis Sewer District Headquarters, June 27 – Click here to watch the recording on Youtube

City of Kirkwood, June 28

City of Chesterfield, June 29 – Click here to watch the recording on Youtube

North County Recreation Center, July 19

City of Ballwin, July 20

Thomas Dunn Learning Center, July 25

St. Simon the Apostle Catholic Church, July 26 

St. Louis County Department of Public Health, July 27 

O’Fallon Park Recreation Complex (YMCA), July 29

City of Fenton, August 2

Metropolitan St. Louis Sewer District Headquarters, August 7 – To join virtually via our Youtube live stream, click here.

If you would like to attend a Public Hearing near your residence but do not have transportation, van service will be provided by calling 314.335.2028.  A 24-hour notice is required as spots may be limited based on demand.

Quite simply, the Rate Commission represents the voice of the people in MSD’s rate-setting process. The Rate Commission was first created in 2000 when 70% of voters in the City of St. Louis and St. Louis County, combined, approved changes to MSD’s Charter. Operating independently of MSD staff, the process the Rate Commission utilizes is meant to provide MSD customers and the public in general with an unfettered voice in MSD’s rate-setting process.

Per MSD’s Charter, Rate Commission proceedings may take up to 165 days from the date MSD staff submits a rate proposal for review and consideration.  During this time, the Rate Commission will conduct multiple Technical Meetings, where Commissioners and the Commission’s legal, engineering, rate setting, and other experts will seek testimony from MSD staff and vet the proposal.  The Rate Commission process also includes multiple Public Hearings that are held throughout MSD’s service area (all of the City of St. Louis and approximately 80% of St. Louis County).  These hearings are designed for the public to hear firsthand from MSD staff about proposed rate increases; ask questions of MSD staff; and provide feedback to the Rate Commission.  The hearings are arranged and presided over by the Rate Commission.  All meetings – be they Technical Meetings or Public Hearings – are open to the public and conducted in accordance with Missouri Sunshine Law.

By the end of 165 days, the Rate Commission is required to submit a report to MSD’s Board of Trustees.  The Rate Commission may recommend changes to the rate proposal submitted by MSD staff.  (In the 20+ year history of Rate Commission, the Commission has never approved a staff proposal as submitted.)  As the Rate Commission conducts its business and develops its report, it is guided by five criteria regarding the proposed rate change(s) by MSD staff.  These criteria are:

• Is the proposed rate change consistent with constitutional, statutory, or common law as amended from time to time?
• Does the proposed rate change enhance MSD’s ability to provide adequate sewer and drainage systems and facilities, or related services?
• Is the proposed rate change consistent with and not in violation of any covenant or provision relating to any outstanding bonds or indebtedness MSD?
• Does the proposed rate change impair MSD’s ability to comply with applicable Federal or State laws or regulations as amended from time to time?
• Does the proposed rate change consider the financial impact on all classes of customers in determining a fair and reasonable burden?

The Rate Commission is expected to issue its report to MSD’s Board of Trustees in early September 2023. Documentation of the Rate Commission’s activities and the formal rate proposal from MSD staff is available on the 2023 Wastewater & Stormwater Rate Proposal webpage.

Staff’s proposal covers MSD fiscal year 2025 through fiscal year 2028 – July 1, 2024, through June 30, 2028 – and includes increases in wastewater rates and additional stormwater funding.

Wastewater Rates:  MSD proposes spending nearly $1.65 billion on construction and related work.  To pay for this work, MSD proposes a combination of rate increases and the issuance of $750 million in voter-approved debt funding, primarily in the form of wastewater revenue bonds.  If voters approve the use of debt at a future election – as they have on five previous occasions – the monthly rate schedule for the average single-family residential household will be as follows:

• The previously approved rate for fiscal year 2023 (July 1, 2022, to June 30, 2023) is $55.014 per month
• The previously approved rate for the fiscal year 2024 (July 1, 2023, to June 30, 2024) is $57.04 per month
• The proposed rate for fiscal year 2025 (July 1, 2024, to June 30, 2025) is $61.04 per month
• The proposed rate for the fiscal year 2026 (July 1, 2025, to June 30, 2026) is $65.66 per month
• The proposed rate for the fiscal year 2027 (July 1, 2026, to June 30, 2027) is $70.60 per month
• The proposed rate for the fiscal year 2028 (July 1, 2027, to June 30, 2028) is $75.23 per month

If voters do not approve of the use of debt at a future election, the monthly rate schedule for the average single-family residential household will be as follows:

• The previously approved rate for fiscal year 2023 (July 1, 2022, to June 30, 2023) is $55.014 per month
• The previously approved rate for the fiscal year 2024 (July 1, 2023, to June 30, 2024) is $57.04 per month
• The proposed rate for fiscal year 2025 (July 1, 2024, to June 30, 2025) is $77.26 per month
• The proposed rate for the fiscal year 2026 (July 1, 2025, to June 30, 2026) is $104.34 per month
• The proposed rate for the fiscal year 2027 (July 1, 2026, to June 30, 2027) is $83.50 per month
• The proposed rate for the fiscal year 2028 (July 1, 2027, to June 30, 2028) is $87.72 per month

The future election referenced above is tentatively planned for April 2024.

Stormwater Rates:  Per the proposal MSD staff has submitted to the Rate Commission, additional revenue would be raised to fund a stormwater capital program.  The stormwater capital program would fund approximately $700 million in projects that would primarily address flooding and erosion issues.  The revenue for the stormwater capital program would be raised through two new, but separate, sources of funding:

• A real estate tax of $0.075 per $100 of assessed valuation is levied against only residential property.  For a home whose assessed value is $176,000, the amount charged would be $2.08 per month or approximately $25.00 per year.
• A fee of $1.05 per 1,000 square feet of impervious area – the area of a property that does not absorb stormwater – is charged against only non-residential property.

The new residential stormwater tax and the new non-residential impervious fee would be submitted to voters for approval.  This election is meant to coincide with the wastewater debt/bond election, tentatively planned for April 2024.

2023 Rate Proposal Flyer

The Rate Commission itself is composed of 15 member organizations that, collectively, represent the broadest possible cross-section of MSD customers and the community it serves.  Rate Commission member organizations are selected by MSD’s Board of Trustees through a public self-nomination and selection process.  Each member organization serves a six (6) year term and appoints an individual to represent the organization on the Rate Commission.  Per the voter-approved changes made to MSD’s Charter in 2000, the Board of Trustees shall select member organizations “so as to ensure a fair representation of all users of the District’s services.” Specifically, Rate Commission member organizations “shall represent commercial-industrial users, residential users, and other organizations interested in the operation of the District, including by way of example but not by way of limitation, organizations focusing on environmental issues, labor issues, socio-economic issues, community-neighborhood organizations, and other nonprofit organizations.” Independent by design from MSD staff, the Rate Commission has at its direct employ the necessary legal, engineering, rate setting, public engagement, and other professional resources it requires to fulfill its voter-approved mandate.