MSD Project Clear Bond Issue on April 6 Ballot

The Metropolitan St. Louis Sewer District (MSD Project Clear or MSDPC) is asking voters in The City of St. Louis and St. Louis County to make a decision that will impact their wastewater rates. Proposition Y, on the April 6, 2021 ballot, will determine how MSDPC funds $1.58 billion worth of required wastewater system improvements from 2021 to 2024. Proposition Y was originally intended to be put before voters in April 2020, but the vote was postponed after the onset of COVID-19 restrictions in the weeks leading up to that election. In addition to Proposition Y, voters will also be presented with several potential changes to MSDPC’s Charter. The work to be funded during this period, which is necessary to improve water quality in the region as part of an agreement between MSDPC, the U.S. Environmental Protection Agency (EPA) and the Missouri Coalition for the Environment, includes nearly 300 projects designed to:

  • Eliminate wastewater overflows,
  • Reduce wastewater building backups,
  • Repair and rehabilitate the wastewater sewer system,
  • Upgrades at Bissell Point and Lemay Wastewater Treatment Plants, and
  • Retire the Fenton Wastewater Treatment Plant.

As in every rate cycle, the rate proposal was reviewed and considered by an independent Rate Commission at several public meetings in 2019. MSDPC staff has since prepared an extensive collection of informational material to help voters make an educated decision. That material can be accessed 24/7 online through the Rate Commission and MSD Project Clear.

The language below will appear on the April 6, 2021 ballot in the City of St. Louis and St. Louis County:

PROPOSITION Y
To comply with federal and state clean water requirements, shall The Metropolitan St. Louis Sewer District (MSD) issue its sewer revenue bonds in the amount of Five Hundred Million Dollars ($500,000,000) for the purpose of designing, constructing, improving, renovating, repairing, replacing and equipping new and existing MSD sewer and drainage facilities and systems, including sewage treatment and disposal plants, sanitary sewers, and acquisition of easements and real property related thereto, the cost of operation and maintenance of said facilities and systems and the principal of and interest on said revenue bonds to be payable solely from the revenues derived by MSD from the operation of its wastewater sewer system, including all future extensions and improvements thereto?
o Yes
o No

A “yes” vote gives MSDPC the ability to issue $500,000,000 in bonds to fund some of the work and repay this debt over a 20 to 30 year period; borrowing this amount through bonds will keep rates lower, although the cost will be greater in the long-term since interest will be paid on the amount borrowed.

A “no” vote means MSDPC will pay for the work as it’s done, exclusively through rate increases; this will mean higher rates in the short-term, but lower costs overall since no interest will be paid.
As the following table shows, both options will impact wastewater rates in MSD Project Clear’s service area. Proposition Y’s impact on monthly wastewater rates is for demonstration purposes and is based on typical monthly usage for a single-family residence.

The public is invited to learn more and ask questions at a series of live virtual public meetings via Zoom and Facebook Live. These virtual town hall meetings will feature a presentation by Executive Director & CEO Brian Hoelscher who will also take questions from participants. The full schedule is below and at msdprojectclear.org/townhalls.

Click on the date or time you are available to register for one of our virtual town halls, or register on the website:

  1. Wednesday, February 10 at 6pm
  2. Wednesday, February 17 at 6pm
  3. Wednesday, March 24 at 6pm
  4. Wednesday, March 31 at 6pm

After registering, you will receive a confirmation email with information on joining the town hall.

For more information on Proposition Y and charter amendments on the April 6, 2021 ballot, click the links below or visit msdprojectclear.org/townhalls:

The public is also encouraged to stay informed on Proposition Y and other MSD Project Clear initiatives @MSDProjectClear on Facebook, Instagram and Twitter and The Metropolitan St. Louis Sewer District on LinkedIn and NextDoor.

About MSD Project Clear:  MSD Project Clear (MSDPC) is two utilities in one–responsible for 7,000+ miles of public wastewater and stormwater sewer systems in the St. Louis region. MSDPC is investing billions of dollars over a generation to improve water quality and minimize wastewater and stormwater issues by monitoring regulatory compliance, planning, designing, and building community rainscaping, system improvements, and an ambitious program of maintenance and repair.