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Issue: 1082 Date: 5/19/2011
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MSD wants rate hike to pay for sewer construction, other costs |
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The staff of the Metropolitan St. Louis Sewer District wants to to raise the typical monthly single-family residential sanitary sewer rate by $18.32 by July 1, 2015.
The increase is part of a package of sanitary sewer rate hikes that would finance a $1 billion sewer construction program, $639 million in total operating costs in the four years and $350million in debt service for current and future bonds.
The staff proposes a $945 million bond issue to help pay for sewer construction which voters would have to approve. The bonds might be on the ballot next April, the staff says.
The district has already scheduled a sewer rate increase for July 1 when the typical monthly residential rate will increase to $28.73 from $27.56. The new monthly typical rate would go to$32.37 on July 1, 2012, $36.71 on July 1, 2013, $41.56 on July 1, 2014 and $47.05 on July 1,2015.
The staff on Tuesday sent its rate proposal to the district's rate commission. Under the district's charter, the commission has up to 165 days to make a recommendation to district trustees who would make the final decision on a rate increase.
The commission consists of representatives of 15 civic organizations. The way members consider the staff proposal is similar to the process the Missouri Public Service Commission uses when handling proposals for electricity, natural gas or water rate hikes. The district's rate commission will hold public hearings on the matter.
The district explained the staff proposal said the increase would allow the district to finance projects "that will reduce overflows into area waterways, alleviate basement backups and ensure water quality in the St. Louis area's rivers and streams."
Lance LeComb, a district spokesman, said "we have to maintain and operate the fourth largest sewer system in the nation and do it well." The district also has to comply with federal and state clean-water regulations, he said. |
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