WDRB 41 Louisville - News, Weather, Sports CommunityMSD making changes after scathing state audit

MSD making changes after scathing state audit

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  • Thanks to a grant from Norton Healthcare, this story and others are available in real-time closed captioning on WDRB.
    Thanks to a grant from Norton Healthcare, this story and others are available in real-time closed captioning on WDRB.

LOUISVILLE, KY. (WDRB) -- The Metropolitan Sewer District now has a revised ethics policy. It comes after last month's scathing state audit, and it is just one of a number of changes likely to come as a result of the audit.

"I want to say we are being very responsive in light of the fact that the audit has a high number of findings," interim MSD Executive Director Greg Heitzman told the MSD Board of Directors at its Monday meeting.

Heitzman says the process is well underway at responding to all of the 150 recommendations for change contained in the audit.  It charged that MSD's previous management fostered a culture of widespread waste and excessive spending.

Heitzman says the agency is dealing with a number of issues, "Such as reviewing our expenditures and reviewing discretionary expenses," he says, "dealing with the situation with our attorney, looking at our financial situation, all of those items are all under review."

The agency's problems first surfaced after it was revealed that several board members were doing business with the agency.  Those members have been replaced by Louisville Mayor Greg Fischer.

On Monday, the MSD Board approved a revised ethics policy that says no board member or MSD official can have a direct relationship with an organization doing business with MSD.

"There are prohibitions in this policy of doing business with MSD by board members and MSD officials," explains board member James Craig, "and there are procedures for the policy in place for the implementation of a whistle blower policy."

Mayor Greg Fischer has also appointed a task force to look into how MSD and the Louisville Water Company could work together more efficiently.

"Opportunities of partnering all the way to potential merger with the Louisville Water Company," explains Heitzman, "that ultimately we could generate savings for our respective customers and be able to provide higher levels of service, higher levels of efficiency and productivity, and the benefactor will be our ratepayers."

The task force study expected to be completed by the end of April.

MSD is also looking at changing the way it gives pay raises to its non-union workers, examining the possibility of merit-based raises instead of the cost of living increases.

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