Sewer Rate Increase, City Audit, Arts Council Top Aldermen Meeting

A number of issues were discussed Monday night, but the Manchester Board of Aldermen meeting started off with a presentation to the board about a proposed 64-percent rate increase by  Metropolitan St. Louis Sewer District (MSD). 

MSD Rate Increase

Jeff Theerman, MSD's executive director, explained the increase that MSD proposed to the rate commission in May. The newly proposed increase comes in addition to a rate change that is already taking place in July that was approved years ago. Theerman said the July change will increase the average customer's bill from $27.58 to $28.73.

Meanwhile, the newly proposed increase will ultimately take the average customer's monthly bill from that $28.73 to $47.05 by 2016. It is part of a bundle of rate increases to finance a $1 billion sewer construction program, $634 million in operating costs in the next four years and $359 million in debt service for current and future bonds.

MSD is also proposing a $945 million bond issue to help pay for sewer construction that voters would have to approve. 

Right now, the rate commission is reviewing the proposal and will give its recommendation to the MSD Board in September. The board will take the recommendation and make any necessary changes to the rate increase plan by December. This new rate increase would take effect in July 2012 and affect a resident's wastewater rates only. At this point, there is no proposed change to stormwater rates due to pending litigation. Bonds to help fund the cost of the sewer project would be voted on in the April 2012 election, and the outcome of that election would help determine the exact rate increase that residents would see in July.

"What would we here in Manchester see as an advantage to the rate increase?" Alderman Michael Clement asked Theerman.

Theerman said Manchester residents would see improvements associated with improvement of the sewer system including a reduction in basement back up problems. He also said the rate increase will not be the same for each resident because wastewater rates are based on water consumption of the individual household.

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Click here to see MSD outline of proposed rate increase.

City Budget Audit Report

Each year an audit of the city's financial statements is required according to state statute.

The company contracted to conduct the financial audit for the city gave its report Monday night. Michele Graham said her firm Boltz, Deal and Company reviewed the city's financial statements and said the city received a "clean opinion." 

Residents can find the city's budget, the city's financial statements and the independent audit report on the Manchester city website. 

Manchester Arts Council

Manchester resident William Vivrett addressed the board with the idea of the city starting an arts council. He said the city should be one where the arts can flourish and be appreciated. Board members agreed to explore the idea, citing neighboring cities that have successful arts councils. No decision was made Monday night on specifics on how to advance the idea, but the board talked about having a sign-up sheet at the city's homecoming celebration in September for interested residents.