Louisville Metro Government Oversight/Audit and Appointments Committee Meeting – August 4, 2026

On Tuesday, August 4, 2026, the Government Oversight/Audit and Appointments Committee met at 5:02 p.m. in Council Chambers and virtually, with Chair Donna L. Purvis presiding. All 10 committee members were present, establishing a quorum; Council Member Betsy Ruhe also attended. The committee heard a special presentation from the Metropolitan Sewer District (MSD) about proposed changes to rate-setting authority, held two pending ordinances, and recommended a slate of board and commission appointments to the full Metro Council for its August 13, 2026 meeting. The meeting adjourned at 6:44 p.m.

Special Discussion: MSD Rate-Setting Authority and Consent Decree (ID 26-0704)

• MSD Executive Director Tony Parrott, General Counsel Kellie Watson, CFO Brad Good, Chief Engineer David Johnson, Chief of Staff Carmen Moreno Rivera, and MSD board members attended. Parrott presented an overview opposing the proposed amendment to LMCO Section 50.24 that would lower MSD's rate increase authority from roughly 7% (current board authority 6.9%) to CPI plus 1%.
• Parrott described MSD's history: established as a wastewater utility in 1946; took on stormwater, drainage, and flood protection responsibilities under a 1986 MOU with Louisville Metro; and since 2005 has operated under a federal consent decree with the EPA, U.S. Department of Justice, and Commonwealth of Kentucky, amended in 2009 and again in 2017.
• MSD stated the second amended consent decree requires completion of the remaining work by 2035. Over the last two years, MSD's board set rate increases at 3.9% per year, the lowest in more than 20 years, but Parrott argued that CPI+1 would force MSD to return to Metro Council annually for rate approval, delay major projects, and increase costs.
• Specific projects identified as at risk include the Upper Middle Fork tunnel project (estimated at nearly $400 million), sanitary sewer overflow work, the Floyd's Fork interceptor, eastern Jefferson County water quality treatment plant expansions, updates to 70-plus-year-old flood pump stations, Project Dry, and the catch basin replacement/odor mitigation program. MSD reported a 16% year-over-year decrease in odor complaints.
• Consent decree context: EPA added $70 million in critical sewer rehabilitation and a $25 million per year asset management allowance. MSD shifted about $220 million in sanitary sewer overflow projects to later in the schedule to address emergencies such as the Morris Forman biosolids project and Paddy's Run flood pump station (a $240 million project).
• Rate and credit impacts: MSD said a one-notch ratings downgrade could cost ratepayers an estimated $10–20 million in additional interest costs. Moody's reportedly assigns rate management about 10% of its scorecard, and S&P Global Ratings already views the 7% cap as a negative. MSD also noted federal grant support for mandates has declined from roughly 75% to 6–7%, while NACWA projects average utility rate increases of 4.4% this year and up to 6.8% over the next five years nationally.
• MSD warned that if council approval is required and denied, the consent decree would require MSD to notify EPA, and federal/state regulators could compel the necessary rate increases, shifting local control away from Louisville Metro. MSD also said any change in board authority would be a material change requiring further amendment of the consent decree.
• Committee members raised questions and concerns: Council Member Reed asked for a plain-language summary of consent decree projects and progress; Council Member Kramer asked that the summary include EPA additions to requirements since 2005; Council Member Hawkins raised flooding and catch-basin concerns in Park DuVal, especially signage and customer communication; Council Member Piagentini questioned the 'dire' financial narrative and criticized federal consent decrees generally; Council Member Owen suggested an annual affordability discussion; Council Member Ruhe asked about residential/industrial rate structures and the long-term post-decree outlook.
• CFO Brad Good explained that rates are set on a cost-of-service basis: for fiscal year 2027, residential rates increased 3.9%, while commercial and industrial rates were adjusted at different percentages, with some decreased and some increased. Council Member Ruhe asked whether industrial rates could offset residential burden, and Good responded that cost-of-service rate design is the nationwide standard.

Pending Legislation

• O-009-26 – SAFE Law (amending LMCO Chapter 36 police policies): remained held in committee.
• O-161-26 – Amending LMCO Section 50.24 to amend the debt service adjustment: remained held in committee after a motion to hold; no final committee vote.

Appointments and Reappointments

All of the following appointments/reappointments were moved, seconded, approved by voice vote, and sent to the Consent Calendar:

• Sarah Brady – Affordable Housing Trust Fund Board (term expires Dec. 31, 2028)
• Robert Blair – Air Pollution Control District Board (term expires Jun. 30, 2029)
• Michelle Gardner and Terrence Elliott – Anti-Displacement Commission (both terms expire Jun. 26, 2029)
• Sharon Bond and Marilyn Lewis – Board of Zoning Adjustment (both terms expire Jun. 30, 2029)
• David Greene (term expires May 1, 2027), Jamie Campisano, Lesli Schaffer, and Andrew Blieden (terms expire May 1, 2029) – Greater Louisville Lodging Management District Board
• Marina Gonzalez (term expires Jun. 1, 2028) and Matthew Beck (term expires Jun. 1, 2029) – Police Merit Board
• Nadareca Thibeaux – Riverport Authority Board (term expires Jul. 31, 2027)
• Brian Funk and Kevin Gibson – Waste Management District 109 Board (both terms expire Jun. 22, 2028)

Keturah Morrow from the Mayor's Office spoke in support of the appointees. Several appointees attended and spoke, including David Greene, Andrew Blieden, Jamie Campisano, Michelle Gardner, Terrence Elliott, Sharon Bond, Marilyn Lewis, Matthew Beck, Marina Gonzalez, Nadareca Thibeaux, and Brian Funk.

Key Outcomes

• The MSD discussion was informational; no vote was taken on rate-setting authority.
• O-009-26 and O-161-26 were both held in committee.
• All 15 appointment/reappointment items were recommended for approval by voice vote and placed on the Consent Calendar for the full Metro Council meeting on August 13, 2026.
• The committee requested MSD follow-up materials, including a plain-language consent decree history and progress summary, with additions requested by Council Member Kramer.
• Chair Purvis adjourned the meeting at 6:44 p.m.