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MSD loses Missouri Supreme Court appeal on stormwater charge

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JEFFERSON CITY, MO. (KTVI) - It was a dramatic defeat for MSD in a storm water rate case before the Missouri Supreme Court.

The Missouri Supreme Court ruled Tuesday that MSD was wrong in imposing a storm water rate increase without putting it to a vote of the people

The ruling comes as a major setback for the agency that said it needed millions of dollar for storm water projects like putting in new sewers.

But Missouri Supreme Court judges said MSD was wrong in the way they went about itand it should have gone to the ballot box.

MSD imposed a storm water fee back in March of 2008 until late 2010 when there was a court challenge because the agency didn't put it to a vote.

MSD collect $80 million from customers during that two year period and spent millions of dollars on lawyers.

Tuesday I talked to an MSD spokesman and also an MSD taxpayer watchdog.

The court decided that customers are not entitled to a refund.

MSD on the hook not only its own lawyers but for the opposing sides lawyers too, that amount will be in the millions of dollars.

The case goes back to the trial judge to determine lawyer fees.

MSD Response to Missouri Supreme Court Ruling Against MSD Stormwater Funding Appeal