Wednesday, June 30, 2010

MSD SET UP THE PLAN FOR "FEES" 10 YEARS AGO OR LONGER

I follow MSD closely as most who read this site can tell and it amazes me how many times something new pops up. This is one of those times. According to this document, http://stormwaterfinance.urbancenter.iupui.edu/PDFs/Wpcf4.pdf, created November 16, 2000 and modified March 6, 2001, MSD was already trying to find a way to justify fee increases without it being labeled an illegal tax.

The writer? None other than Larry Zeilke MSD's own attorney.

The substance is actually a good read but I am sure MSD did not count on someone finding this document 10 years later as it basically justifies the lawsuit recently brought against them by the STOP I.T. (Stop invisible taxes) group headed by Ray Pierce and Paul Holliger.

The story can be found here:
Louisville News and Politics: MSD SUED OVER RATE INCREASE: ONE GROUP SAYS JUST STOP I.T.!

What is interesting is that STOP I.T.'s basic premise is that MSD never received permission to raise rates from a legislative or governing body. The evidence presented in this from 2000 clearly shows that MSD knew they needed it.


In 2000 as part of this report by attorney Zeilke he acknowledges the needed approval of the legislative body of the City yet every increase done that falls below 7% is done automatically. Does MSD make their own rules as they go along?

Furthermore, Zeilke goes on to explain why the fees are not an illegal tax with the primary argument being that the fees are used for storm water and/or drainage only. Since the City receives no revenue from MSD these cannot be considered a tax.

Of course the City receives money from MSD all the time. Anytime MSD puts in new sidewalks, etc, among other things in some areas that is the City's responsibility, so the arguments by Zeilke 10 years ago and the cases he cites are mute.

This is going to get real interesting real soon so stay tuned.

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