The Metropolitan St. Louis Sewer District (MSD) will file an appeal in the case of Zweig, et. al. vs. MSD.
The Metropolitan St. Louis Sewer District (MSD) will file an appeal in the case of Zweig, et. al. vs. MSD. The notice of appeal will be filed by December 31, 2010. Zweig, et. al. vs. MSD is a class action lawsuit that was filed over the validity of MSD’s impervious based stormwater user charge, which was implemented in March 2008. In July 2010, a Lincoln County judge ruled that the user charge was invalid. The July ruling forced MSD to reinstate a previous system of flat charges and property taxing districts to pay for stormwater service and cut $15.5 million in stormwater services and projects from the current budget. Due to how the taxing districts were previously established, customers inside of I-270 will receive very basic stormwater services, while customers outside of I-270 will receive virtually no stormwater service other than those services that are required by state and federal regulations. Additionally, funding for stormwater projects such as new stormwater sewers, erosion control, and the like, will no longer be available after June 2012. These cuts were announced by MSD on October 15, 2010. In October 2010, a hearing was held on if a refund of stormwater user charges collected since March 2008 should be made. The judge decided in November 2010 that a refund was not warranted. A third phase, to award plaintiff attorney fees, is scheduled to take place on January 18, 2011. In announcing the decision to appeal, MSD issues the following statement: “It is important to keep in mind that MSD is two utilities under one umbrella – a wastewater utility and a stormwater utility. Thus, wastewater rates must pay for wastewater service and stormwater rates must pay for stormwater services. With that in mind, MSD implemented the impervious based stormwater user charge in March 2008. The reasons for the charge were three fold. First, to allow stormwater funding that charges the same rate to all MSD customers and provides a uniform level of service through out the District. Second, to provide for new and enhanced stormwater services that are desperately needed by many in our St. Louis community. Third, to structure all funding in a manner that allows MSD to meet regulatory requirements for stormwater, without interfering with MSD’s efforts to meet regulatory requirements for wastewater. While MSD deeply respects the judge’s decision, we will appeal the portion of the Lincoln County judge’s decision that invalidated the stormwater user charge. MSD fundamentally disagrees with the ruling and its underlying basis. MSD’s ability to establish user charges is well established and was extensively litigated in the 1990s. Furthermore, MSD went to great lengths to satisfy all legal requirements for the establishment of a stormwater user charge, including review and approval of the user charge by MSD’s voter approved Rate Commission. Outside of if the appeal is successful or not, the issue of stormwater funding that provides effective and equal service must be solved. Without proper funding, chronic stormwater problems – particularly those outside of I-270 – will only get worse. This is unfair to customers and is not sustainable over the long term. For the sake of our community and our customers, MSD will continue its work to establish a method of adequate stormwater funding.”