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ST. CHARLES — Contaminated groundwater threatening St. Charles’ drinking water supply has created a long-lasting “stigma� for the community, alleges a lawsuit filed Wednesday against Ameren by the city.

“This ongoing contamination has caused permanent damage to the property and reputation of this community, not to mention the costs incurred by the city trying to protect its water,� former Gov. Jay Nixon, an attorney for the city, said at a news conference announcing the suit.

The suit contends that the discovery of chemicals linked to an Ameren substation near the city’s wellfield has caused “and/or will continue to cause� a decline in or a reduced rate of growth of population, tourism, economic activity and tax revenue in the city and St. Charles County.

The suit seeks millions of dollars from Ameren in damages and to reimburse the city for its expenses dealing with the contamination, such as buying new filtration equipment for its water treatment plant.

“Our citizens should not — and will not — bear that cost,� Mayor Dan Borgmeyer said.

The suit marks an escalation in the fight between St. Charles and Ameren, the region’s electric utility. It, for the first time, includes St. Charles County as a co-plaintiff. And it was filed by high-powered St. Louis area law firms Dowd Bennett and Blitz, Bardgett & Deutsch.

In response to the suit, an official with Ameren’s ÁñÁ«ÊÓƵ operations repeated that the electric utility is carrying out directives from the federal Environmental Protection Agency to clean up the contamination caused by cleaning solvents used years ago at the substation.

“Ameren Missouri has consistently focused on the continued safety of the drinking water in the city of St. Charles,� Craig Giesmann, director of environmental services, said in a statement. “We have tried to work collaboratively with the city.�

Giesmann also pointed out that the EPA and other agencies have said the city's drinking water has been and remains safe. The city also has about 3,000 water customers in unincorporated areas. The rest of St. Charles County gets water from other providers, such as Missouri American Water.

Although not ordered to do so by the EPA, the city as a precaution has shut down most of its wells over the past three decades and is buying the extra equipment that Nick Galla, the city public works director, said is costing $10 million to $20 million.

After the equipment is installed, Galla said, the city hopes to begin using the wells again, on a gradual basis.

Nixon and Borgmeyer were joined at the news conference outside the St. Charles County Courthouse by County Executive Steve Ehlmann.

The lawsuit, which was filed in St. Charles County Circuit Court and seeks a jury trial, doesn’t specify a damage amount.

However, Borgmeyer has said in past interviews that more than $100 million in work is needed to protect the city water supply, including the treatment plant equipment and digging a new wellfield.

The city also has had to increase the amount of water it purchases from St. Louis. Moreover, the mayor said the city has devoted hundreds of hours of staff time to the issue.

Asked by a reporter about the St. Louis water department’s recently announced need for more revenue to deal with rising costs and aging infrastructure, Galla said he has not been notified of any potential increase in the rate St. Charles pays St. Louis to purchase water.

Ehlmann, in explaining the county’s involvement in the suit, noted that most county government buildings are located in St. Charles, the county seat, and that 600 to 700 county employees work there and use water supplied by the city.

He said although the city has borne most of the costs, for which the suit seeks reimbursement, the county health department has spent some money to test the water in county buildings.

The suit’s argument that the city and county’s economy is being hurt by a public perception of drinking water problems was made despite gains in population in recent Census Bureau estimates for St. Charles and St. Charles County.

In contrast, much of the rest of the St. Louis metro area experienced reductions in population.

Ameren has been doing groundwater cleanup in St. Charles for the past decade. In February, the EPA announced that the utility’s substation was the cause of additional contamination and told the company to take additional steps.

Earlier this month, after prodding from EPA officials, the city and Ameren worked out an agreement allowing Ameren access to the wellfield needed for some of the cleanup work.

Nixon, the former governor, is an attorney with Dowd Bennett.

Borgmeyer said in an interview that the two law firms representing the plaintiffs will be paid a percentage of any “recovery� of money received via the lawsuit.

“If it’s unsuccessful, it’s not going to cost the taxpayers,� he said.

The EPA also has attributed contamination in the area to a defunct Findett Corp. chemical facility that operated decades ago.

The lawsuit filed Wednesday was in addition to efforts launched by the city in federal court on the issue earlier this year.

Updated at 5:40 p.m.