LOUISVILLE, Ky. (WDRB) -- State lawmakers in Frankfort are putting a focus on the price-tag attached to Metropolitan Sewer District bills for customers. 

House Bill 387, filed last week, is described as "an act relating to metropolitan sewer districts." Its sponsors include more than half a dozen representatives from the Louisville area, including Democrats and Republicans. 

"Our constituencies across the city of Louisville have experienced incredible rate increases over the last 20 years," said sponsor Rep. Jared Bauman (R-District 28).

Bauman said the bill would ensure MSD rate increases are justified and used responsibly. He said the bill would not lower rates, but instead, provide a system for oversight. 

"What this bill is going to do is require that MSD -- any time they want to raise the rates above the rate of inflation -- they'll have to come before Metro Council, demonstrate to the public and to the council at that time, the need for the rate, why it has to be risen to a certain level to achieve certain financial targets and get council's approval for that," Bauman said.

"The bill is also going to ensure that MSD does not spend money in a wasteful way. Rate-payers deserve to know and understand how the money is being spent within MSD." 

MSD spokesperson Sheryl Lauder said director Tony Parrott was not available for an interview Tuesday. Instead, MSD sent a statement saying in part that while it shares Bauman's intent to ensure rates are as low as possible and met with him before the bill was filed, "... the proposed legislation is not just misguided, it poses a significant threat to MSD's financial stability and its ability to meet the state and federal regulations that are in place to protect the public."

According to MSD, a third-party analysis indicates the bill would create "uncertainty with national bond rating agencies that impact the interest rates MSD pays for critical capital projects. This uncertainty could lead to a rating downgrade or worse."

MSD said that means rate-payers would be faced with the increased costs and would need to pay more interest for necessary projects.

Kevin Trager, press secretary for Mayor Craig Greenberg responded with a similar statement saying:

"We understand the frustration with recent MSD rate increases, particularly now that tariffs and other national factors are increasing expenses for families. Our focus should be on helping Louisville families reduce everyday costs, but unfortunately this legislation will result in more rate increases due to MSD's bond being lowered. We know this is not the intent and we're working with others to reduce costs associated with this important service."

MSD said its rates are driven by system infrastructure enhancements required by the federal government. It said while it never wants to increase rates, "measured increases over time are required to continue protecting our communities health and safety while meeting our federal environmental requirements."

Bauman first spoke to WDRB about a bill such as this in June 2024. At that time, he mentioned pulling in a state utility regulator. However, this proposed legislation mentions "the legislative body of the city or the consolidated local government containing the district."

HB 387 is still in the very early stages. Bauman said the next step would be a hearing in a committee. 

"We've still got some hurtles to jump over but, looking forward to that work," he said.

Bauman described this bill as "short-term" and said he plans on working toward something for the "long-term" in the future. 

Related Stories:

Copyright 2025 WDRB Media. All Rights Reserved.