News & Events

Grants and loan forgiveness part of MSD effort to minimize ratepayer costs 

LOUISVILLE, KY – The Louisville MSD Board approved resolutions to accept more than $28 million in grants and loan forgiveness to help pay for improvements in sewage treatment in Bullitt and Oldham counties along with flood protection in Jefferson County, at their meeting on October 28. 

“This is the latest example of MSD’s consistent efforts to reduce the costs to ratepayers of infrastructure projects by seeking alternative funding,” MSD Executive Director Tony Parrott said after the board vote. 

A $1.3 million grant from the Kentucky Infrastructure Authority (KIA) will help with work in Oldham County to construct interceptor sewers that will send flow to MSD’s Floyds Fork Water Quality Treatment Center in Jefferson County, allowing for the decommissioning of the outdated Ash Avenue wastewater treatment plant in Oldham. 

For Bullitt County, a $4.7 million KIA grant will fund replacement of an influent pump station at the Hunters Hollow wastewater treatment plant and allow for area wastewater to be treated at MSD’s Derek R. Guthrie Water Quality Treatment Center in Jefferson County. 

The ongoing project to replace the Paddy’s Run Flood Pump Station in Jefferson County receives $5.4 million in principal forgiveness on a $57.6 million KIA loan. 

The Paddy’s Run facility protects 216,000 people and 87,000 structures from flooding when the Ohio River rises. 

The Paddy’s run project previously received $17 million in grants. 

While finding alternative funding doesn’t prevent the need for rate increases, “it does allow MSD to deliver more needed and required projects with the same level of debt,” Chief Financial Officer Brad Good said. And that helps keep rate increases lower than they would be without grants and loan forgiveness.

MSD has published our FY24 Annual Comprehensive Financial Statement.

MSD has published our Fiscal Year 2025 Budget document.

MSD board approves fiscal year 2025 preliminary rate resolution for Jefferson and Oldham counties

Average monthly residential bill for Jefferson County customers to increase $5.19 Oldham County customers to increase $3.74 Rate assistance programs continue

LOUISVILLE, KY – Much needed upgrades and repairs to Jefferson County’s wastewater treatment, stormwater management and flood protection infrastructure would move forward under the preliminary rate resolution Louisville MSD’s board approved May 28. Under the fiscal year 2025 budget plan, MSD will invest more than $298.8 million to support 208 projects. The 6.9 percent rate increase would add $5.19 to the average monthly Jefferson County residential bill, and $3.74 to the average Oldham County residential bill, beginning August 1, 2024.

The Board also agreed to continue MSD’s wastewater rate assistance programs that provide a 30-percent discount for qualified low-income ratepayers in both counties. 

The capital improvements are needed to repair sewer, flood protection, and drainage systems that have some major components built more than 100 years ago, and to meet mandated requirements of its Consent Decree with the U.S. Environmental Protection Agency brought on by environmental rules added long after those systems were built.

MSD Executive Director Tony Parrott noted that, “frequent sewer cave-ins and failures are examples of the challenges we face across our service area with outdated infrastructure that is long past its useful life.” MSD aggressively seeks to fund as much of these projects as possible through sources other than rates paid by customers. “We are using grants and low-interest loans for the critical work of replacing outdated biosolids processing at our Morris Forman Water Quality Treatment Center and replacing our Paddy’s Run Flood Pumping Station,” Parrott said.

MSD Board Chair Marita Willis added, “This is a necessary but measured rate increase, and I’m pleased that MSD has been aggressive about pursuing several innovative financing mechanisms, grants, and loans to help continue managing and improving the system in a fiscally responsible way."

The agency has made great progress on its Consent Decree requirements of mitigating overflows of untreated wastewater that pollute the Ohio River and our streams. Annual combined sewer overflows have been reduced by 90 percent, from 6.5 billion gallons per typical rainfall year to 648 million gallons, through construction of required combined sewer overflow basins and our Waterway Protection Tunnel. 

Alternative Funding Accelerates Projects 

The pursuit of alternative funding streams helps MSD improve infrastructure as quickly and efficiently as possible. These funding mechanisms — which are currently providing more than $225 million of support for in-progress projects — come in the form of grants and low-interest loans that expedite upgrades to the flood protection system, enhance odor mitigation efforts and help to protect the community. Nearly five percent of the $298.8 million FY2025 Capital Improvement Plan is funded by grants.

“Growing MSD’s Alternative Funding Program over the last decade has played a crucial role in accelerating critical capital projects in a landscape where aging infrastructure, climate change resilience, and regulatory responsibilities vie for limited funding,” Infrastructure Planning Manager Stephanie Laughlin said.

Rate Assistance program extended

The FY2025 rate resolution also extends the Emergency Wastewater Rate Assistance Program (EWRAP), which provides a 30-percent wastewater charge discount for ratepayers whose household incomes are at 150 percent of the poverty line or below. MSD also offers a 30 percent discount on wastewater services for qualified senior citizens. 

In the past seven years, MSD has contributed over $1.2 million through the local Community Ministries and the Louisville Water Foundation’s Drops of Kindness program, which helps customers who have trouble paying their water and sewer bills. 

To learn more and to apply, visit LouisvilleMSD.org/PayMyBill or call 502.540.6000.

LOUISVILLE, KY – An approximately $230 million project to replace MSD’s Paddy’s Run Flood Pump Station is underway. Kentucky Governor Andy Beshear, United States Army Corps of Engineers Col. L. Reyn Mann, U.S. Congressman Morgan McGarvey, Louisville Mayor Craig Greenberg, and State Director for U.S. Senator Mitch McConnell, Robbin Taylor, today joined MSD officials to formally begin the project that will replace an outdated flood pump station with a new state-of-the-art facility—providing increased pumping capacity to reduce flood risk for 63,000 residents, improving resilience and delivering a measure of environmental justice to the neighborhoods of West Louisville and beyond. 

Paddy’s Run Flood Pump Station (FPS), built in 1953, is part of a system that protects 216,000 people, 87,000 structures, and $33 billion in property. During Ohio River flooding, flood pump stations keep rising Ohio River water out of the city while pumping interior waterways like Paddy’s Run into the river. The 70-year-old Paddy’s Run facility currently runs on original parts that are no longer available for replacement, which requires around-the-clock maintenance. 

The replacement project will more than double the existing Paddy’s Run FPS pumping capacity from the current 875 million gallon per day to 1.9 billion gallons per day. With all pumps engaged, the new Paddy’s Run FPS could drain the equivalent of an Olympic-sized swimming pool in approximately 29 seconds. The modern pump station will feature a total of eight pumps, along with modern electrical and instrumentation controls.

“Paddy’s Run has been doing a 21st century job with 1950s technology, staying in operation due to nearly constant maintenance by our dedicated employees,” said MSD Executive Director Tony Parrott.  “With the increased frequency of severe weather events, it’s imperative that the facility is able to effectively and efficiently handle the environmental demands of our times.

MSD successfully pursued a $13.24 million Cleaner Water Grant under the American Rescue Plan Act to assist in funding this crucial project. Additionally, congress approved $1 million in federal funds allowing USACE to begin design work on urgently needed upgrades to electrical equipment dating to the 1950s for our Flood Protection System. 

Also, MSD will receive $28.89 million in funding from the State Revolving Fund, with $1.6 million in forgivable loans. “Every Kentuckian deserves the best modern infrastructure to keep them safe and healthy, and this project will better protect the lives and homes of more than 60,000 Kentuckians,” Gov. Andy Beshear said. “We are working hard to make sure West Louisville and all of Kentucky have access to clean, safe water through projects like this, our Clean Water Program and more.”

“The upgrade of Paddy’s Run Pump Station is a monumental first step in the repair, rehabilitation, and reconstruction of features within Louisville’s flood protection system and is a testament to MSD’s commitment to this project. We are proud to continue our long-standing partnership with MSD as we take a collective step toward ensuring the future of the Louisville Metro Flood Protection System.”

—Col. L. Reyn Mann, Commander USACE Louisville District

“Replacing Paddy’s Run’s outdated infrastructure has been a long time coming,”said Rep. Morgan McGarvey. “I’m proud to support this project to improve climate and environmental resiliency for communities across my district, especially historically underserved neighborhoods in West Louisville. These updates will ensure Paddy’s Run can continue to effectively serve Louisvillians for decades to come.”

—Morgan McGarvey, U.S. Representative, Kentucky Third Congressional District

The replacement of the existing Paddy’s Run FPS also aligns with the federal government’s Justice40 priorities, ensuring that at least 40 percent of federal climate investments go directly to frontline communities most affected by poverty and pollution. 

“The completion of this new, modern facility will also deliver a measure of environmental justice to the predominantly Black neighborhoods of West Louisville, delivering on one of MSD’s core values of equity and justice,” Parrott added.

“The Paddy’s Run Flood Pump Station replacement project is more than infrastructure—it's a testament to our commitment to safeguarding our city. With hundreds of thousands of residents and businesses depending on the pump station, this initiative reflects our pledge to a safe and healthy community. Thank you to MSD for taking preventative action to better our residents and our city.”

—Craig Greenberg, Louisville Metro Mayor

The projected substantial completion date on Paddy’s Run is December 2026. 

Paddy’s Run by the numbers

Existing Paddy’s Run Flood Pump Station

• Opened in 1953

• MSD responsible for Jefferson County flood protection since 1987

• Capacity of 875 million gallons per day

• Total of six pumps, four large and two small

New Paddy’s Run Flood Pump Station

• Capacity of 1.9 billion gallons per day

• The ability to drain an Olympic-sized pool in approximately 29 seconds

• Eight pumps, 6 large and two small 

• All new pumps and motors made in America

• $20 million invested in pumps, motors and installation

• Modern electrical and instrumentation controls

Equity and Job Creation

The Paddy’s Run project will benefit the community through MSD’s Community Benefits Program. When MSD pursues large capital projects, it invites its engineering and construction partners to use their resources to impact the neighborhood positively. MSD’s Community Benefits Program encourages contractors on construction projects over $2 million or professional service contracts over $200,000 to voluntarily submit community initiatives they will pursue if awarded the project. MSD contractors have invested more than $3 million back into the communities where projects have occurred.

The Paddy’s Run Flood Pump Station Project will create approximately 400 construction jobs with Ulliman Schutte Construction—the progressive design-build project lead—has a construction commitment of 76 percent for Local Labor hiring for job classifications including: 

• Asphalt workers

• Carpenters

• Cleaners

• Cement finishers

• Electricians

• Foundations workers

• Labor

• Operators

• Masons

• Mechanical workers

• Millwrights

• Plumbers

• Pipe fitters

• Precast workers

• Roadway workers

• Roofers

• Utility workers

Additionally, the project will employ approximately 100 jobs through professional services, inspections, management and supervision. 

MSD also requires contractors to meet specific targets for minority representation among subcontractors.

LOUISVILLE, KY – Ongoing and necessary upgrades and refurbishments to Jefferson County’s wastewater treatment, stormwater management and flood protection infrastructure will move forward under the rate proposal Louisville MSD’s board approved today. The rate proposal adds $4.85 to the average monthly Jefferson County residential bill beginning August 1, 2023.

Please see below for the full press release.

LOUISVILLE, KY – Louisville MSD has joined colleague utilities to formally launch the American Business Water Coalition (ABWC), established to address the critical need for more federal investment into our nation’s water infrastructure. 

Please see below for the full press release.

Please click the file below to read the "MSD Wins Three National Awards" news item.

LOUISVILLE, KY –Today, on the 50th anniversary of the passage of the federal Clean Water Act of 1972, MSD cut the ribbon on the massive underground Waterway Protection Tunnel and ceremonially handed off to Waterfront Park ownership of the nearly 5-acre tunnel site at 12th and Rowan streets on the western edge of downtown.

What had been the primary construction site where workers, trucks, cranes and excavators based their efforts to build a massive underground stormwater storage tunnel will now be repurposed to enable Waterfront Park’s much-awaited westward expansion.

“MSD is so pleased to partner with Waterfront Park to take this property from a worksite to a play site for the entire community to enjoy,” said MSD Executive Director Tony Parrott. “During the tunnel construction, I often referred to it as the most important construction project that Louisville residents may never see. However, now that the tunnel is operational, not only will the community reap the benefits of preventing sewer overflows, but also an expanded Waterfront Park, which will bring all parts of our community together and connect all with the Ohio River in a beautiful way. Safe, clean waterways for all is what the Clean Water Act is all about.”

For the past four years, the site had served as the primary construction and staging area for MSD’s Waterway Protection Tunnel – a four-mile tunnel built more than 18 stories beneath Louisville. The tunnel is a crucial piece of MSD’s federal consent decree work to protect our local waterways. The $221 million project helps prevent sewer overflows from polluting the Ohio River and Beargrass Creek during heavy rain and can store up to 55 million gallons of stormwater and wastewater per rain cycle and reduce sewer overflows by approximately 500 million gallons annually.

Before the Waterway Protection Tunnel and other MSD Consent Decree projects, heavy rains often resulted in combined sewer overflows – where the volume of rainwater exceeds the sewer system capacity, combines with wastewater, and overflows into the Ohio River and other area streams. Now, the tunnel and a network of storage basins and pipes combine to store nearly 180 million gallons, holding it until the rains subside and capacity is available in the sewer system. Then pumps send the contents through the sewer system to MSD’s Morris Forman Water Quality Treatment Center, where it is treated and released back to the Ohio River.

“It’s only fitting that the completion of the Waterway Protection Tunnel and the generous donation of land to grow Waterfront Park is happening today, on the 50th anniversary of the enactment of the Clean Water Act,” said Congressman John Yarmuth. “This monumental project will not only help preserve the Ohio River and Beargrass Creek, but it will also expand Waterfront Park further west so that it can be enjoyed by even more Louisvillians year-round. I thank Louisville MSD for their dedicated work in making this project a reality and helping ensure that our waterways are protected for generations to come.”

“For years my family called Louisville home, so I personally know the significance of this ribbon cutting and the important role the Waterway Protection Tunnel will play in ensuring families have access to clean, safe water – a basic human right,” said Gov. Beshear. “I am proud to see the steps being taken today to make this city an even healthier place to live. From providing clean water to transferring more land to the Waterfront Park expansion so that more families can have access, Louisville is making progress for Kentuckians and visitors alike.”

“I was pleased to see the legislature affirm the Governor’s plans to set $10 million aside in last year’s budget to expand Waterfront Park. MSD has been an exceptional partner with the Louisville community. Their generous donation of this land will be a great addition to the already-expanding waterfront park in west Louisville,” states Kentucky State Senator Morgan McGarvey.

“Waterfront Park—our front yard, our communal living room—will extend along an Ohio River that is cleaner because of this wastewater tunnel. This westward expansion, and conversion of the tunnel work area to a Waterfront Park recreation area, will strengthen the connection among our neighborhoods by being part of more of our neighborhoods, giving more of our people even more space to come together, take a walk, ride a bike, play at a park…closer to home,” Mayor Greg Fischer.

The 22-acre park expansion between 10th and 14th streets will connect downtown and West Louisville along the waterfront. This new phase will provide additional open space along the river, increasing opportunities for new outdoor experiences and activities. The MSD parcel is envisioned to include a key feature of the park expansion, including a unique outdoor experiential learning area for children that has been designed in partnership with the Kentucky Science Center.

“What an amazing partnership this is,” said Deborah Bilitski, president and executive director of Waterfront Park. “Below ground MSD will be working hard to protect our community, while above ground the community will be enjoying the world-class amenities at Waterfront Park Phase IV.”

Background

Construction of the Waterway Protection Tunnel began in 2018 at the 12th and Rowan site. It progressed to the east more than 200 feet below ground, underneath downtown and the Butchertown area, where it veered slightly to the south on its way beneath Lexington Road to its terminus near Grinstead Drive. A tunnel-boring machine longer than a football field dug the 22-foot wide, four-mile-long tunnel. Along the way, crews carted more than 625,000 tons of excavated rock via a horizontal conveyor belt back through the tunnel to the 11th and Rowan site, where it transitioned to a vertical conveyor belt to be brought to the surface, loaded onto trucks, and taken away. Once excavation was complete, crews lined the entire length and circumference of the tunnel with 12-inches of solid concrete to prepare it to store stormwater and wastewater during heavy rains.

Results of MSD’s Waterway Protection Tunnel to date

Despite the drought the area is experiencing, the Waterway Protection Tunnel has been hard at work capturing excess sewage and stormwater and storing it until system capacity is available. The tunnel has captured 89,570,000 gallons of what would have been sewer overflow since its operation in June 2022.

To date, MSD Consent Decree projects have reduced combined sewer overflow volume into local waterways by 5.85 billion gallons in the Typical Rainfall Year.

Please see the attachd document for more information.

Please see the attaced document for more information.

The Waterway Protection Tunnel crossed a major milestone last week on the way to becoming operational this spring.

Installation of a 12-inch concrete liner inside the 4-mile tunnel was completed February 11. It was done in short sections pouring the concrete around 30-foot-long circular metal frames that were repeatedly assembled, disassembled and moved along the way.

“It was almost like puzzle work,” project engineer Jacob Mathis said. “Concrete would be poured on Monday morning, and once it was set, that form was taken apart and moved forward. It was all about timing to keep the puzzle going.”

The Waterway Protection Tunnel runs from Grinstead Drive at Lexington Road westward to 12th and Rowan streets in the Portland area. The lining process began in September 2020 after the “Bumblebee” boring machine completed grinding a 22-foot-wide path through bedrock.

Mathis said the tunnel is expected to be operational by June 1, accepting flows of wastewater and stormwater through the snaking cylinder eighteen stories underground. Until then there’s a punch list that includes grouting the tunnel, injecting concrete to fill voids between the liner and the rock, removing any debris that might have become caught in the concrete during pouring, and repairing those spots. Surface work continues at four drop shafts connected to the tunnel.

Land around the pump station site at 12th and Rowan streets is expected to be cleared by August 1. The site will be topped with soil, grass seeded and given to Waterfront Development Corporation for the future Phase IV expansion of Waterfront Park.

The tunnel will prevent 439-million gallons of rainwater and wastewater from overflowing and polluting the Ohio River and Beargrass Creek in a typical rainfall year.

Mathis said the work has been rewarding. “Once it’s done, it will be something we can be proud of as an organization,” he said. “And there will be a sense of relief to have it done.”

Regional approach to watershed management will improve wastewater treatment and create economic development opportunities.

LOUISVILLE, KY – Improved wastewater treatment and expanded service capacity are in store for Bullitt County following MSD’s acquisition of the Bullitt County Sanitation District (BCSD). MSD completed the acquisition on November 30 and takes over service responsibilities for 4,200 Bullitt County (former BSCD, Hunter’s Hollow Treatment Plant and Big Valley Sewer Utility) residential customers and eight small “package” wastewater treatment plants on December 1.

“We appreciate the collaboration of the Bullitt County Fiscal Court and BCSD to complete this transaction and move toward a regional vision to improve wastewater treatment and increase treatment capacity for a growing community,” said MSD Executive Director Tony Parrott. “Watersheds cross over jurisdictional boundaries, so a regional approach allows us to provide services holistically across the watershed, bring economies of scale, and make improvements that benefit the entire region, not just one county or the other.”

Among the benefits of the acquisition, MSD will begin to decommission some of Bullitt County’s smaller treatment plants that have passed their useful life and manage that service through MSD’s larger regional treatment facilities. One of MSD’s first projects will divert wastewater flow from the former Hunters Hollow Treatment Plant and Big Wood Pump Station to MSD’s recently constructed large sewer line in southern Jefferson County, the Mud Lane Interceptor. In addition, MSD will develop a long-term facilities plan to identify capital improvements or elimination plans for all the wastewater treatment plants within the service area.

“MSD’s acquisition of BCSD will bring wastewater system improvements to protect the health and safety of residents while the increased service capacity also creates economic development opportunities for Bullitt County,” said Bullitt County Judge Executive Jerry Summers.

Terms of the acquisition maintain the 10-year customer rate structure Bullitt County Fiscal Court put in place in 2016, including 12-percent annual increases. However, when that schedule expires, MSD will reduce the annual increases to no more than 3-percent until Bullitt County rates equalize with that of MSD’s Louisville customers.

BCSD employees will become MSD employees.

“We are pleased to welcome former BCSD employees as we integrate them into the MSD Operations Group,” Parrott said. “Their institutional knowledge will combine with MSD’s expertise and resources to enhance wastewater service in the region.”

Two grants totaling more than $7.6 million will fund major MSD infrastructure improvements in Jefferson and Oldham counties. Governor Andy Beshear announced the grants October 26 under the $250 million Kentucky Cleaner Water Program, funded by the federal American Rescue Plan Act.

Just over $7 million will go toward the nearly $124 million project to replace the outdated Paddy’s Run flood pumping station in Jefferson County. Built in 1953, the Paddy’s Run station serves 214,500 people, 70,000 homes, 6,000 businesses and 40 neighborhoods. The planned replacement will more than double pumping capacity from the current 875 million gallons per day to 1.9 billion gallons per day.

In Oldham County, $591,000 will be used for construction of interceptor sewers. The interceptors will divert flow to the Floyds Fork Water Quality Treatment Center and allow for the decommissioning of the Ash Avenue Wastewater Treatment Plant.

MSD Executive Director Tony Parrott said the Paddy’s Run replacement “will improve resilience against extreme storms for some of Louisville’s most vulnerable populations by reducing the risk of exposure to floodwaters containing industrial chemicals and combined sewage.” Parrott said the Oldham County work will increase the efficiency, reliability and environmental friendliness of the sewer system.

The Environmental Justice Task Force for the National Association of Clean Water Agencies (NACWA)—chaired by MSD Executive Director Tony Parrott—has developed a set of Environmental Justice Principles for the water sector. The principles will be used by NACWA in on-going discussions with Congress, the Environmental Protection Agency and utility peers.

“Because of the work our task force has done, NACWA has moved to set up a standing Environmental Justice Committee within NACWA this fall which will keep the momentum going,” Parrott said.

The statement of principles and recommended actions can be found at https://bit.ly/3FaEAZQ.

The April 15 announcement of a $97 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Louisville MSD marks a commitment to safe, clean waterways for the community while also saving money.

MSD Executive Director Tony Parrott joined U.S. Environmental Protection Agency (EPA) Administrator Michael S. Regan, Kentucky’s Secretary of Energy and Environment Rebecca Goodman, Louisville Mayor Greg Fischer, and other officials for the announcement conducted via video conferencing.

Regan said the loan would finance almost half of the $197.8 million project costs for improvements on processing biosolids at Morris Forman Water Quality Treatment Center (WQTC), the oldest and largest wastewater treatment plant in Kentucky.

“This WIFIA partnership shows how water infrastructure can help communities build back better under the American Jobs Plan by strengthening public health and environmental protection while creating jobs and supporting water affordability,” Regan said.

The improvements will create the capacity to produce 40,000 dry tons of exceptional quality biosolids per year for beneficial reuse, reducing reliance on landfills. This will significantly increase energy production—bringing the facility closer to energy independence—and improve system operations and reliability while maintaining affordable wastewater services for the community.

“So, our local environment benefits, as do the residents who live nearby. I join our fantastic MSD team, community partners and the EPA leadership in celebrating the EPA’s WIFIA loan to help make much-needed improvements,” said Mayor Greg Fischer.

Parrott said the loan’s low interest rate and long repayment schedule would save ratepayers about $15 million in interest. “We could not get this rate from any other lending institution. The improvements to our solids handling process will result in a win for our customers and the environment for generations to come.”

The video conference can be viewed at https://bit.ly/3gaNpc6.

New effort would fund partnership with Louisville Water, MSD, LG&E

Mayor Greg Fischer has proposed an ordinance to provide the Office of Resilience and Community Services (RCS) with an additional $10 million in the current fiscal year to help thousands of Louisville customers struggling to pay their utility bills because of a COVID-19 related financial hardship.

Citing the negative impact that COVID-19 has had on employment, here and across the country, the Mayor noted that the Louisville Metropolitan Statistical Area (MSA) has lost more than 36,000 jobs since last year, including nearly 8,000 in the Leisure and Hospitality industry alone.

“As a result, thousands of our neighbors are in a financial crisis, many for the first time. They want to pay their bills but simply cannot keep up, and every month, they become increasingly behind in paying for these vital services,” Mayor Fischer said. “Our goal here is to help them steady the ship.”

The effort represents a new partnership with Louisville Water Co., MSD, LG&E, and the utilities’ foundations, working together to help people get back on track in paying their utility bills.

The plan is for the funds to be available in mid-January. Customers with outstanding balances on their utility bills could receive a one-time credit at an amount that’s still to be determined. Customers will need to attest that they’ve had a financial hardship during the pandemic.

Since mid-March, none of the local utilities have cut off service for non-payment. Kentucky Gov. Andy Beshear issued a moratorium on utility service cut-offs in March that was lifted in October. But even under the moratorium, customers are responsible for the utility services they use, and many are falling further and further in arrears.

For example, in mid-March, 1,900 customers were behind on their Louisville Water/MSD bill. As of Oct. 29, there are 18,000 residential customers in Jefferson County who are behind on their Louisville Water/MSD bill, with an average outstanding balance of $430 owed.

“We know the critical importance of our product during this pandemic,” said Spencer Bruce, President and CEO of Louisville Water. “This potential funding will help thousands of customers, and we are grateful for this community partnership.”

“Providing essential services of collecting and treating wastewater, flood protection, and managing stormwater is not an easy task in the best of times,” said Louisville MSD Executive Director Tony Parrott. “Our regulatory requirements continue even as we face severe revenue shortages resulting from an economic downturn in our community, country and world. We are grateful for the actions of Mayor Fischer and our Metro Council in providing utility payment assistance for our customers facing economic hardship.”

LG&E currently has nearly 38,000 residential customers in arrears, with an average bill of more than $400.

“This has been a challenging year and we appreciate the additional funding being allocated to those having difficulty paying their utility bills,” said LG&E President and CEO, Paul Thompson. “We have been working with our customers to establish longer term payment arrangements to get them to stronger economic times. This additional assistance certainly supports our efforts.” 

Louisville Water/MSD already provide customer assistance through the Louisville Water Foundation, and LG&E also helps customers in need through its foundation. The utilities have also provided additional COVID-19 relief help. LG&E, for example, has contributed more than $250,000 to COVID relief efforts, including $100,000 each to the One Louisville Fund and Team Kentucky.

The city’s $10 million, which must be approved by Metro Council, would come from general fund dollars freed up by CARES (Coronavirus Aid, Relief, & Economic Security) Act) funding in other areas. The funds would be distributed by RCS under agreements with the utilities and foundations. Other details are still being worked out among the parties.

Councilman Markus Winkler, one of several Council sponsors, said, “As the Covid-19 pandemic continues to impact our business community, tens of thousands of Louisvillians remain unemployed and are struggling to make ends meet. To make matters worse, our federal government seems unwilling or unable to create a comprehensive plan to address the pandemic and provide meaningful aid to families. This failure of leadership pushes the burden on local communities and as such we must do our part to ensure families can maintain access to basic services such as water and heat as we head into the winter.”

For now, the city urges residents to be in contact with the utilities about their bills to understand all their options for becoming current on their bills.

“We know this credit will help some families completely catch up, but some will still be in arrears, so they need to be in communication with the utility companies, all of which have ways to help beyond this credit,” Mayor Fischer said. “I appreciate that all three companies are working hard to help their customers through this difficult time.”

The utility relief initiative will complement work that Louisville Metro Government (LMG) and its partners have already done to help residents struggling because of COVID-19. For example, RCS has distributed more than $2.8 million raised through the One Louisville: COVID-19 Response Fund to landlords and/or utility companies on behalf of 3,324 households.

This summer, LMG allocated $21.2 million in federal CARES money toward eviction prevention assistance, establishing a program to assist individuals through RCS, as well as a program that allows landlords of subsidized units to apply for assistance on behalf of their tenants, the Landlord Tenant Rental Assistance Program, through the Office of Housing.

The Office of Housing also has partnered with the court system and Legal Aid Society on the Eviction Diversion Pilot Program, which acts as a backstop for eviction as cases enter the court system. As of Oct. 16, those three programs have allocated $5.4 million, assisting 3,246 households and 6,199 total residents in Jefferson County.

Louisville Metro also recently reallocated $3 million from the Landlord Tenant Rental Assistance Program for external agency agreements with the Coalition for the Homeless and ACM to administer eviction prevention programs.

Louisville MSD has taken another step toward a regional approach for watershed protection.

The Bullitt County Sanitation District (BCSD) and Bullitt County Fiscal Court signed a Memorandum of Agreement (MOA) authorizing MSD representatives to review all facets of the BCSD operations with the intent of acquisition. Pending results from that review, MSD would own and manage the BCSD system improvements while creating greater operational efficiencies that benefit all customers.

“A watershed crosses over cities and counties, it is best to protect and manage that watershed with a regional approach,” said MSD Executive Director Tony Parrott. “When you remove the arbitrary jurisdictional or political boundaries, we have the opportunity to look holistically across the watershed, bring economies of scale, and make investments and improvements that benefit the entire region, not just one county or the other.”

Under the preliminary proposal, MSD would assume BCSD’s duties and responsibilities in early 2021 for its 4,200 residential customers and eight small “package” wastewater treatment plants. One of the initial actions is to develop a capital improvement plan addressing aging and failing systems and take advantage of regional economies of scale to benefit the ratepayers in both counties.

MSD will maintain the BCSD customer rate structure approved in 2016 by Bullitt County Fiscal Court, through its conclusion in 2026. At that point, BCSD rates will rise no more than 3-percent per year until BCSD and MSD rates equalize.

“We will be able to replace many of the “package” treatment plants that are past their useful service with a regional solution, improving the sewer service reliability in the area and the health of local waterways,” Parrott said.

MSD Executive Director Tony Parrott has been appointed by Louisville Mayor Greg Fischer to help lead a newly launched effort to close the city’s racial wealth gap. Parrott and LG&E and KU Energy Chief Executive Officer Paul Thompson are co-chairs of the Equity in Contracting and Procurement Task Force the mayor created Wednesday by executive order.

The task force will use supplier diversity initiatives to help firms owned by minorities, females and people with disabilities do work on capital projects. The co-chairs were chosen because both MSD and LG&E/KU have successful track records in supplier diversity.

Louisville Metro Government estimates that more than $5 billion will be invested locally in public and private capital infrastructure investments over the next five years, including projects from the city, MSD, Louisville Gas & Electric Company and others.  Mayor Fischer wants to see more MFDBEs–minority, female, disabled, and LGBT business enterprises as defined in the Louisville Metro Code of Ordinance 37.66–involved in that work. 

The Equity in Contracting and Procurement Task Force will establish ambitious and achievable goals and timetables to increase the level of expenditure with those businesses. Parrott will co-chair with Paul W. Thompson, CEO and president of LG&E and KU Energy. Both MSD and LG&E and KU Energy have a significant history of promoting supplier diversity through their own procurement policies.

“As MSD spends hundreds of millions of dollars annually on projects like the Waterway Protection Tunnel, we require contractors to hire specific numbers of minority subcontractors and commit to using local labor on construction projects,” Parrott said. “In the last 5 years, MSD has awarded over $160 million in contracts to minority- and women-owned firms. We also assist minority firms bidding as prime contractors. I am happy to join others in the challenge to create a lasting citywide effort at economic equity.”

Nationally, according to the Brookings Institution, at $171,000, the net worth of a typical white family is nearly 10 times greater than that of a Black family ($17,150) in 2016.  Locally, only 2.4% of Louisville’s businesses are Black-owned, while the city’s population is 22% Black. 

Parrott said the work of the task force is vital in the wake of changes in both the community and the nation. “We find ourselves standing at a crossroads—a crossroads where we have to ask ourselves ‘Are we going to continue the path of chaos, or are we going to come together as a community to figure out how we can address one of the biggest poisons we have in our city?’ which is economic inequality and poverty in our community.”

The Equity in Contracting and Procurement Task Force’s work will include developing a Local Labor Utilization guideline to be implemented by local companies, with commitments to make good faith efforts to employ maximum possible local labor.

The Task Force will solicit input from and collaborate with local businesses, business organizations, labor unions, human resources organizations, supplier diversity organizations, and others who work daily in this area. These organizations have committed to joining the Task Force, with the following representatives:  

• Louisville Metropolitan Sewer District (Tony Parrott)
• LG&E and KU Energy (Paul Thompson)
• Louisville Water Company (Spencer Bruce)
• Louisville Regional Airport Authority (Dan Mann)
• Louisville Metro Housing Authority (Lisa Osanka)
• Louisville Metro Government (Chief Equity Officer Kendall Boyd)
• Louisville Metro Council (Councilwoman Paula McCraney)
• Jefferson County Public Schools (Dr. Marty Polio)
• University of Louisville (Sally Molsberger)
• Kentucky Transportation Cabinet (Secretary Jim Gray)
• Louisville Urban League (Sadiqa Reynolds)
• One West (Evon Smith) 

The Task Force will also establish a Workforce Development Subcommittee to include representatives from KentuckianaWorks, Labor, and Greater Louisville, Inc. (GLI).

The Equity in Contracting and Procurement Task Force will hold its first meeting later this month. The Task Force chairs will schedule meetings on at least a bi-monthly basis over the next six months and establish sub-committees as needed. An initial report with preliminary recommendations will be submitted to the Mayor by December 31, 2020.

At its May 26 board meeting, MSD proposed an Emergency Wastewater Rate Assistance Program (EWRAP) for customers who need help paying sewer bills. The program is in response to a proposed rate increase of $2.98 per month on the average MSD bill that, if approved, would take effect August 1, 2020.

Prior to making its rate proposal, MSD required all divisions to plan reduced budgets for the upcoming fiscal year. In total, 66 vacant positions will be eliminated, saving approximately $5.6 million. In addition, the capital improvement budget shrunk by $6.9 million. However, those savings are countered by steep increases in delinquent accounts since the COVID-19 pandemic began. MSD's delinquent accounts jumped from less than 500 customers in mid-March to close to 10,000 customers currently.

Additionally, MSD will see a $7 million increase in its debt service required to fund capital projects, many of which are required to meet the federal Consent Decree requirements to reduce sewer overflows that pollute area waterways.

Assistance programs would offset rate increase

Under MSD's proposed EWRAP, households up to 150 percent of the federal poverty line would be eligible for a 10 percent wastewater discount on their bill. With this discount, customers would effectively be paying less than they pay currently, even in light of the rate increase.

MSD will also continue its Senior Citizen discount program where eligible customers can receive a 30 percent discount on their wastewater charges and the Consent Decree Surcharge. Additionally, MSD participates in the Louisville Water Foundation's Drops of Kindness program that helps customers who have trouble paying their water and sewer bill. Drops of Kindness is funded by donations from MSD, Louisville Water Company, Home Serve USA and individual contributions from anyone who wants to help.

MSD historically has made annual rate adjustments to reflect the growing needs with maintaining and upgrading the wastewater treatment, stormwater drainage and flood-protection system.

After the proposed rate increase, MSD's rates will remain lower than peer cities such as Cincinnati, Nashville, Indianapolis and St. Louis, helping the community remain competitive for economic development.

Public Comment Period

MSD's board approved the preliminary rate proposal yesterday, initiating a 60-day public comment period. Those wishing to view or comment on the rate proposal may visit MSD's website at LouisvilleMSD.org/Rates or contact MSD Customer Relations at 502.540.6000 or at CustomerRelations@LouisvilleMSD.org to receive a copy by mail.

Written comments regarding this proposed rate increase must be sent to MSD Board c/o Finance, 700 West Liberty Street, Louisville, KY 40203 or email to Finance@LouisvilleMSD.org by July 26, 2020.

Louisville MSD and Louisville Water Company realize that many customers are facing stressful and challenging times right now. The utilities are working together to help customers manage their water and wastewater bills. Today the Louisville MSD board approved an additional $100,000 donation to the Louisville Water Foundation for customer assistance. The Board of Water Works—the governing body for Louisville Water—will consider a similar donation request at its April meeting.

Louisville MSD is taking steps to assist our customers who may be facing financial hardships due to the COVID-19 pandemic. Beginning Monday, March 23 through May 1, 2020, we will waive new late fees for customers who are having difficulty paying their billing charges incurred during this time. Additionally, during this crisis, Louisville Water will not turn-off water service to customers who fall behind in their payments. These are temporary measures and customers are still responsible for paying their Louisville Water and MSD bill. It is important to contact Louisville Water at 502.583.6610 or MSD at 502.540.6000 if you are having trouble paying your bill.