About the Veolia Proposal
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About the Veolia Proposal for the St. Louis Water Division and the City PowerPoint PPT Presentation


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About the Veolia Proposal for the St. Louis Water Division and the City. KEY ELEMENTS The city wants to make the best use of the assets it owns. Veolia is the #1 water services provider worldwide.

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About the Veolia Proposal for the St. Louis Water Division and the City

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About the veolia proposal for the st louis water division and the city

About the Veolia Proposal

for the St. Louis Water Division and the City

KEY ELEMENTS

The city wants to make the best use of the assets it owns.

Veolia is the #1 water services provider worldwide.

If implemented, Veolia’s proposal would reduce the cost of operations by more than 15% each year – without layoffs.


Population is changing but the system is not

Population is changing, but the system is not

  • The population of St. Louis is one-third of what it used to be 60 years ago. Yet the city still maintains the same infrastructure, the same number of plants and the same number of pumping stations that it had in 1950.

2


Water division customer base has declined

Water Division customer base has declined

City population (in millions)

-63%


Costs of excess infrastructure

Costs of excess infrastructure

  • The cost of maintaining all the old infrastructure is continuing to rise.

  • But revenues are declining, because people and businesses have left the city.

  • Unless something is done with costs, the city will have no choice but to continue to raise rates.

4


St louis water revenue vs expense

St. Louis water revenue vs. expense

now

2009 Rate increase

2008 Rate increase

Expense

19%

11%

Revenue

Millions of $

SOURCE: St. Louis Annual Operating Plans 2010, 2011, 2012 and 2013


Delaying maintenance on a car

“Delaying maintenance on a car”

  • The system has significant capital needs. The treatment plants were built in the early parts of the 19th century. Most of the pumps date back to the 1950s.

  • There are consequences to not fixing this infrastructure, as delaying infrastructure repair is like delaying maintenance on a car – eventually things stop working.

6


Delayed repairs and replacements are increasing capital needs

Delayed repairs and replacements are increasing capital needs

Capital needed (repair/replacements delayed)

Unfunded Projects

Cost (in millions of $)

Funded Projects

SOURCE: Black & Veatch Report


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