ST. LOUIS 鈥 The board of the 狐狸视频 region鈥檚 sewer utility will decide Thursday on rate changes to be put to voters next spring 鈥 weighing a recommended hike of about 32% over four years against a last-minute and less costly alternative.
Critics and some regional lawmakers are pushing the district for the lower increase.
The debate comes as the Metropolitan 狐狸视频 Sewer District must figure out how to finance $750 million in upgrades that it is legally required to make, thanks to a decade-old agreement that aims to reduce widespread sewer overflows and discharges into local waterways during moderate or heavy rainstorms.
The funding proposals under consideration would cover four years of related expenses, as part of $7.2 billion in overall spending, spread over decades.
Voters will be asked whether to use bonds to cover the expense 鈥 a question with major financial ramifications, similar to deciding whether to take out loans for a big purchase, like a house.
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Opting to borrow money results in a lower initial payment but requires paying additional interest over time, while the loan-free alternative calls for much steeper costs up front.
In this case, if voters approve bond financing, MSD customers would face a rate increase of about 32% spread from 2025 to 2028. Monthly bills for residential customers would go from an average of $61 to $75 over that interval. The MSD鈥檚 rate commission is proposing this approach.
But if bonding is ultimately rejected by voters, bills could soar by 35% in each of the first two years, hitting approximately $104 per month in 2026, before sliding into the $85 range.
A contingent of advocates and lawmakers are pushing instead for a 24% increase with bond financing 鈥 an alternative supported by some of the utility鈥檚 rate commissioners.
Some say that the less costly alternative would dodge 鈥渦nnecessary鈥 costs by trimming the amount of money MSD would keep on hand and would not disrupt any essential upgrades or investments.
鈥淥ur position would not delay any of those needed improvements in any way,鈥 said John Coffman, an attorney for the Consumers Council of Missouri, who advocates for customers on utility issues. 鈥淚t鈥檚 only about how much extra cash they鈥檒l have on hand.鈥
Newly introduced legislation in 狐狸视频 and 狐狸视频 County also advocates for the more moderate rate increase.
Ultimately, it鈥檚 possible that MSD鈥檚 board could make its own adjustments or adopt a compromise.
鈥淚t鈥檚 a cafeteria. They can choose whatever they want,鈥 said Len Toenjes, the chairman of MSD鈥檚 independent rate commission, which held recent hearings on the rate increase before recommending a course of action.
He added that the board will sometimes opt for a 鈥渕iddle ground,鈥 even if it鈥檚 not common.
鈥淭hat鈥檚 not standard, but it does happen,鈥 he said.
The bond financing matter could be joined by another MSD issue on the same ballot next April. The utility鈥檚 board will decide Thursday if voters should determine whether it should target $700 million in 鈥渟tormwater solutions鈥 to local flooding problems, over the next 20 years.
If approved, that effort would be funded by new rates that charge typical residential customers about $2 extra per month, while nonresidential customers would pay a fee of $1.05 for every 1,000 square feet of surfaces that are paved or do not absorb stormwater.
