Many of you know I have been following MSD for quite some time. Years in fact. You also know that STOP I.T. led by President Ray Pierce, and operations manager Paul Holliger, formally sued MSD over what they say are illegal rate increases.
FOX 41 covered that story tonight here: COUNCIL MEMBERS: MSD rate increases are illegal - FOX41.com Louisville News Kentucky Indiana News Weather Sports
According to State Senator Dan Seum, who helped draft KRS 76.090 which essentially says metro council and the mayor must approve all rate increases, the MSD rate increases are indeed illegal.
"The Kentucky statute clearly states that the local elected body will approve all rate increases and the mayor will sign off on it," said Seum.
Councilman Doug Hawkins agrees and sent a letter to the County Attorney's Office on Wednesday asking whether MSD had the required consent of Metro Council to impose the increase.
Councilman Hawkins went on to state "If we are not signing off on those rate increases and we are not following state law, there are no checks and balances in place," Hawkins said.
Most of us would agree. With the exception of the astronomical 2006 MSD rate increase of 32% NO increases have been approved by Metro Council period.
When asked by Fox 41's Stephan Johnson "What do you have that trumps this statute that's on the books?" Schardein's pat response is the same as always: "There are local ordinances -- ordinances that were passed that gave MSD's board the authority under the law to set rates at seven percent or less."
MSD's Bud Schardein continues to push the false notion that there are local ordinances that have been passed that allow MSD to raise rates up to 7% each year without approval. And of course this is exactly what MSD has been doing. Raising rates each year but staying at 6.5% to avoid any questioning by the Council.
Oh yeah Schardein has never referred to the supposed ordinance number or anything else to back up his erroneous claims. Gee I wonder why.
MSD has much to answer for thanks to the boys at STOP I.T., State Senator Dan Seum, and Metro Councilman Doug Hawkins.
Stay tuned for what surely will be more to come............
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