St. Louis Sewer District extends maximum debt terms alongside major capital approvals

St. Louis Sewer District extends maximum debt terms alongside major capital approvalsThe utility has updated its debt management policy to permit borrowing terms longer than 30 years, a move that coincides with the advancement of a $5 million stormwater rehabilitation contract and a $3.8 million supplemental floodwall appropriation.

Resolution 4003 updates the district's debt policy to allow terms longer than 30 years when financially and economically beneficial.

The board introduced a $5 million appropriation for Insituform Technologies to rehabilitate over 17,000 feet of storm sewers using CIPP.

A $3.8 million supplemental appropriation was advanced for Alberici Constructors to complete Phase IV of the Mississippi Floodwall ORS Pump Stations Rehabilitation.

An unannounced EPA inspection of the district's industrial pretreatment program concluded with zero findings and no recommendations.

The Metropolitan St. Louis Sewer District (MSD) is expanding its financial flexibility to support its Capital Improvement Program, updating its long-standing debt policy to allow for extended borrowing terms. At its March 12, 2026 meeting, the MSD Board of Trustees adopted Resolution 4003, which amends the district's 2004 Debt Policy. The revision permits the utility to issue debt with terms longer than 30 years, provided the financial and economic benefits are adequately documented and the move is approved by board ordinance. The policy update arrives as the district continues to roll out significant capital projects and prepares its preliminary fiscal year 2027 budget. During the same meeting, the board introduced several major capital appropriations to advance stormwater and flood protection infrastructure. Trustees introduced a $5 million appropriation from the District Stormwater Fund for the 2026 Stormwater Infrastructure Repairs project. The contract, awarded to Insituform Technologies USA, LLC, involves the rehabilitation of approximately 17,059 lineal feet of aging storm sewers ranging from 8 to 72 inches in diameter utilizing cured-in-place pipe (CIPP) methods across various municipalities. Additionally, the board advanced a $3.8 million supplemental appropriation for Phase IV of the Mississippi Floodwall ORS Pump Stations Rehabilitation. The design-build project, led by Alberici Constructors, Inc., involves the design and construction of large roller and sluice gates, as well as actuator replacements at the Mill Creek and Gimblin pump stations. The supplemental funding brings the final design and construction appropriation for the project to $10.8 million, aimed at restoring the reliability of essential components in the St. Louis Flood Protection System. The board also addressed unexpected construction challenges, introducing a $325,000 supplemental appropriation for the Hawthorne Estates sanitary relief project. Staff noted the additional funds were required to cover excessive rock excavation and subsequent backfill and street replacement needs encountered during construction. On the regulatory front, the board president announced that an unannounced, comprehensive inspection of the district's industrial pretreatment program by the US Environmental Protection Agency resulted in a flawless review. The five-day inspection, which evaluated permitting, compliance oversight, and biosolids management at the Bissell Point Wastewater Treatment Facility, concluded with zero findings and no recommendations.