Tue July 24, 2012
Fischer Approves MSD, Louisville Water Merger Process
After reviewing task force recommendations for over two months, Mayor Greg Fischer says he supports the consolidation process between the Metropolitan Sewer District and the Louisville Water Company, but a full merger is not set in stone.
Combining city-run MSD and quasi-governmental agency Louisville Water Company could mean savings between $14 million to $24 million, according to a task force and private audit company Black and Veatch, which reviewed MSD's budget after a state audit found waste in the agency.
The process to begin consolidation needed Fischer's approval, which he gave Tuesday at a joint meeting between the two boards, but the process of combining resources will be slow to ensure its success, officials said.
Fischer said beginning immediately the two agencies could start to form small agreements to cut down on costs and redundancies. Over the next few years that relationship will expand, with caution.
“There are issues we have got to get through from a financial and a legal, legislative standpoint. That’s all part of the due diligence process," said Fischer.
A full merger may not be necessary depending on the due diligence performed throughout the next several years, he said, and its unclear if the two agencies have a clear and supported path to merge.
There may be legislative hurdles that the city may need to clear and officials could not say whether merger would mean lay-offs.