SierraScape June - July 2007
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by Ginger Harris
Contributing Member

In February 2007 MSD sent its long-awaited Impervious Surface fee proposal to its Rate Commission for review. This proposal would eliminate the current stormwater revenue structure of a flat 24 cents per household, business or institution. It would end subdistrict taxes for funding basic stormwater services. And it would end the current subsidy from the wastewater revenue structure. In their place MSD would collect a fee based on each parcel's square feet of impervious surfaces (roofs, driveways, parking lots, patios, etc) to fund basic stormwater services. To fund "enhanced" stormwater capital improvements, MSD proposes a tax within any of its 5 major watersheds only if voters in that watershed vote for such a tax. The basic monthly residential stormwater bill would rise from 24 cents to $3.00, then gradually over 5 years to $4.76 in 2012. Since businesses and institutions with expansive buildings and parking lots cause far greater stormwater run-off and flooding than the average residence, their bills could rise from 24 cents to hundreds of dollars.

The purpose of the proposed fee structure is both to raise needed funds for solving storm-run-off problems, and to create an incentive for property owners to reduce their run-off by choosing pervious materials and designing structures to reduce run-off.

Some observers have suggested that enhanced stormwater improvements should be funded with an Impervious fee system, too, instead of with taxes.

MSD's proposed rate change would also raise $660.9 million over 5 years to fund additions and replacements of its wastewater infrastructure, part of its $3.7 billion capital improvement program to meet federal and state water quality regulations.

Since voters approved amendments to MSD's charter in 2000, MSD has used both bonds and pay-as-you-go (PAYG) to fund its last 2 wastewater capital improvement programs. For its current wastewater rate proposal, MSD wants to use only PAYG financing, in order to avoid a high debt ratio, and in order to preserve bonding capacity for new and possibly huge federal and state mandates.

Since the Sierra Club supports both reducing stormwater run-off and solving water quality problems in streams and rivers, the Club petitioned for one of the 15 positions on the Rate Commission which voters approved in 2000. MSD's Board of Trustees approved the Sierra Club's request, and a Club member has served on the Commission for the past 6 years.

If you want more information on MSD's current rate proposal, go to www.stlmsd.com, or contact Ginger Harris at gingerharris@charter.net or 314-503-1320, and/or attend one of the public hearings listed below.

List of Public Hearings for MSD Rate Proposal