St. Louis City water division warns aging mains, storm damage and delinquent accounts have pushed a near‑term shortfall; SRF loan and rate study expected

The St. Louis City water division told the City’s Public Infrastructure & Utilities Committee on March 4 that a severe winter storm and long-term underinvestment have combined to stress the system, increase emergency repair costs and leave the utility facing a larger projected year‑end shortfall than previously reported.

Director Battel, the water division’s lead official recognized by the committee, said the system recorded 155 main‑repair work orders so far in 2026 (compared with 399 last year) and that 120 of the 155 occurred in the three weeks following the storm. He said the division has responded to more than 1,300 service requests and handled over 13,000 calls to customer service and dispatch this year, with an average initial response time of “a little under eight hours.” Battel added that overtime expenses during the emergency approached $350,000, not including contractor, material and equipment costs.

Why it matters: division officials said the combination of aging pipes, higher emergency costs and a growing delinquent balance is forcing a near‑term funding reckoning that will affect rate planning and capital priorities.

The division is pursuing multiple funding avenues. Staff said they have amended and resubmitted a State Revolving Fund (SRF) loan application seeking $65.9 million to finance 36 water‑main replacement projects; the package includes 13 projects in identified disadvantaged communities. Officials estimate an initial set of projects would cost about $20 million and replace roughly 11 miles of main. The water division also highlighted grant activity: a pending $2.3 million resiliency/backup‑power proposal and an awarded $175,000 cybersecurity grant.

Spencer Gould, the division’s special assistant for outreach, described steps to improve public engagement and transparency: a dedicated rate‑review website, expanded social media, meeting recordings and QR codes on mailed notices so residents can find project and rate‑review materials.

On revenue and rates, Battel said the division’s earlier projection of an approximately $8 million year‑end deficit has worsened and that a rate‑sufficiency study is near completion, with staff expecting clarifying results in mid‑March. The division plans to use the study to model five years of revenues and expenses, analyze borrowing options and recommend rate scenarios; staff said multiple funding products — SRF loans, traditional bonds and other financing tools — will be evaluated.

Consumers and collections: the division said the moratorium on shutoffs was lifted last year and that the city has resumed collection activity, including mailing final disconnection notices and, where necessary, shutting service and referring accounts for liens or collections. Staff reported roughly $14 million in delinquent water balances and described an ARPA‑funded utility assistance program with $1 million initially allocated to provide one‑time awards up to $500 for eligible customers who enter repayment plans; staff estimated about $500,000–$600,000 remained in the fund and said the program deadline is the end of the year.

Public comment emphasized both appreciation for crews and a demand for more detail. Resident James Hinkle praised field crews for rapid, on‑site response but criticized lingering leaks that froze and damaged property. Sandra Paget of the Consumers Council thanked staff for drafting a public rate‑review process but requested that any formal rate proposal include the current rate schedule, the specific proposed adjustment, projected revenue gains and the supporting rate‑sufficiency study; she asked for 60–120 days for independent review once those materials are released.

Committee members pressed staff on timing and mechanics. Vice Chair Schwitzer asked about SRF subsidization and the likelihood of receiving the requested loan; Battel and staff explained SRF loans are subsidized, state purchases bonds to lower interest costs, and that the state DNR will evaluate the amended application. Several members sought clear timelines: staff said a draft rate proposal and public outreach should follow the study’s release and that a roughly 60‑day public review window is feasible, while warning that emergency events can change financial projections in real time.

What’s next: the division expects the rate‑sufficiency study findings in mid‑March and plans additional public outreach meetings; ARPA reallocation bills under consideration at the board level could fund three near‑term replacement projects if advanced. The committee heard no formal votes on funding or rates at the session and adjourned after concluding questions and public comment.

Quotes: “Safe, reliable, economical drinking water for all who live work and play in St. Louis,” Battel said, describing the division’s mission and why the master plan and rate work are urgent. “We’re building out our social media…we want people to know about us,” Spencer Gould said while describing outreach and the rate‑review website. "Without this information, stakeholders and the public can't meaningfully evaluate that proposal," Sandra Paget of the Consumers Council said of the need for full rate‑proposal documentation. "If that was a boat with that many holes in it, I wouldn't want to be sailing on it," resident James Hinkle said, describing his view of the system’s number of breaks.

Ending: The committee accepted the presentation, heard public comment and directed staff to continue outreach; the water division will return with the rate‑sufficiency study results and a recommended next step for public review and potential legislation.