Louisville and Jefferson County Metropolitan Sewer District (MSD) has been engaged in a formal limited scope examination to review certain financial and operational activities. The special examination engagement began May 2025 and ended October 2026.
We remain committed to transparency and open communication and view this process as an opportunity to share our work and identify ways to continue strengthening operations.
The final report is posted to the Auditor of Public Accounts website and can be found here: October 2026 Examination of The Louisville Metropolitan Sewer District.
MSD has developed this Executive Brief of the report that includes our response and references to the full special examination report.
As one organization providing three essential utility services—wastewater treatment, stormwater management, and flood protection, to a population of approximately one million residents—MSD serves as an anchor institution, protecting public health, safeguarding property, and supporting a strong and resilient community.
On Friday, October 23, 2026, Moody's Ratings upgraded Louisville MSD's revenue debt rating to Aa2. Moody's cited the district's historically stable financial performance, strong liquidity and ability to manage significant capital needs, in elevating the utility's rating from the previous mark of Aa3.
MSD also remains focused on affordability and responsible stewardship of public resources. Over the past two fiscal years, the agency has cut $10 million from its operating budget, including the removal of 36 positions, as part of ongoing efforts to maintain efficiency and limit impacts to the communities we serve.
As a regional utility, MSD operates under accountability to local, state, and federal oversight agencies and the MSD Board, reflecting the complexity and importance of its work. This type of oversight requires that MSD is regularly audited by third parties, with water industry experience. To date, MSD has been in full compliance with financial requirements and standards for public water agencies.
“We are confident in our performance, our internal audit controls, our tremendous financial position as an agency, and our leadership in the face of infrastructure challenges, funding needs and the unknown of the ever-changing regulatory landscape. In the past several years we have consistently responded to state auditor inquiries as requested. We will continue to work collaboratively with the State Auditor’s Office and remain committed to serving the community with integrity, transparency, and accountability,” Louisville MSD Executive Director Tony Parrott said.
