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untanglingwebs
El Supremo
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Lawsuit filed against Flint by council president over water rate increases
Published: Thursday, May 24, 2012, 6:00 PM
By Gary Ridley | gridley@mlive.com
FLINT, MI -- Flint City Council President Scott Kincaid has filed a lawsuit against the city seeking to repeal recent increases in water and sewer rates.
The suit filed in the Michigan Court of Appeals alleges the increase in water and sewer rates that went into effect Sept. 16, 2011, are unauthorized because they were implemented without approval of the city council.
The suit also claims that the city has inappropriately transferred the extra income into its general fund rather than into restricted water and sewer accounts.
The practice has continued since Flint Emergency Manager Michael Brown has taken office, the suit alleges.
Kincaid is seeking a temporary restraining order against the city to put an end to the rate increases, according to court records.
“I told the mayor of the city of Flint that he could not transfer payments from the water and sewer fund into the city of Flint’s general fund pooled cash and make payments of the general obligations of the city of Flint,” Kincaid said in an affidavit in support of the restraining order.
No restraining order has yet been approved by the court.
Kincaid declined to comment on the specifics of the suit Thursday, saying he would hold a press conference Tuesday to outline the specifics.
Brown said he is aware of the suit, but he could not comment on specific allegations that were made.
“We have to do what we have to do to balance the budget,” Brown said.
Flint Mayor Dane Walling declined to comment, forwarding questions to attorney Joe Galvin of Miller, Canfield, Paddock and Stone.
The city claims in a response filed in opposition to the restraining order that the water and sewer fees charged are “just enough to meet the city’s statutory duty to charge fees sufficient to pay for the administration, operation and maintenance of the water and sewer systems, and the interest, principal and reserves on the bonds sold to pay for those systems.”
Kincaid says in his affidavit that the funds are used to pay for the city’s “general obligations.”
"The city's water and sewer funds suffered operating losses of more than $17 million in the 2011 fiscal year," Galvin said in an emailed statement.
"This required water and sewer rates to be adjusted in September 2011 to meet operating and bonding requirements anticipated in fiscal 2012. The adjustments to the 2011 rates were made to comply with the requirements of the water system's outstanding bonds and applicable statutes."
According to the suit, water rates were increased 35 percent in September 2011 and that the city did not have authority to implement water and sewer service charges.
More than 2,000 water and sewer customers were scheduled to have their services disconnected as of May 2, the suit alleges.
Kincaid’s attorney, Valdemar Washington, said they are asking the court to return the water and sewer rates to those in effect July 1, 2011, eliminate the water and sewer service charges, forbid the city from disconnecting any customer that hasn’t paid the increases and declare that the increases are an illegal tax in violation of the Michigan Constitution
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Last edited by untanglingwebs on Mon Sep 10, 2012 7:38 pm; edited 1 time in total |
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Thu May 24, 2012 6:35 pm |
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untanglingwebs
El Supremo
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poker4funn
It's about time someone that works in the COF administration stands up for the residents of Flint. I am tired of being bent over and holding my ankles while they keep sticking it to us. Isn't Walling still under federal investigation for misappropriation of City funds? Taking money from the other departments, one being the water department to pay other bills has been going on for a while hasn't it ? Those outrageous "service fees" are nothing more than a cash cow for the COF on the backs of its residents.
fedupinflint
Thank you Mr. Council President Kincaid. Exactly what I've been saying for years. |
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Thu May 24, 2012 6:40 pm |
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untanglingwebs
El Supremo
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trex59
I don't much care for Scott Kincaid. That being said this man is trying to protect the public interest yet many of you make personal attacks. Mr. Kinciad has hired an excellent lawyer in an attempt to stop this activity.
Think of this way. You are on your Mom's bank account. Clearly it is her bank account but she put you on if she needs you to help with her bills. Without the legal right you raid Mom's account because you need money to pay your own bills. To top it off after Mom's assets are depeleted you ask her to deposit more money in her account. This way you can to "steal" more of Mom's money so you can pay your new bills.
When challenged as to why you committed this illegal act of stealing Mom's money you say "We have to do what we have to do to balance the budget." In other Mr. Brown has open season on the water and sewer funds which are held in trust solely to repair the sewer and water system.
So what did Brown do? In effect he implemented a tax without the people's vote. He increases water fees which are by law to be placed in the sewer and water fund. He then "steals" sewer and water funds and places them into the general fund.
Mr. Brown now has sufficient funds to pay himself 170K and all his new friends to wit: his new lawyer retired county attorney Ward Chapman(on the dole for 2 incomes); the Super Chief ( on the dole for 2 incomes) and all his other new non-Flint resident friends.
So think of it this way. Mr. Brown (the son) stole money out of sewer and water fund (Mom's acccount) and then placed it in the general fund (The son's account). When caught and challenged Mr. Brown declares "I have to pay my bills."
This was an illegal act which can not be explained away by saying "I need money. Or by claiming, under the new law, the Emergency Financial Manager's authority has no limits. I have little faith that the Michigan courts will direct Mr. Brown to cease this activity. Given the appeal court's are owned by the Governor it is likely Flint will have a new tax with which to "tap."
(NOTE- ACCORDING TO THE REPORT OF THE FINANCIAL REVIEW TEAM, IT WAS WALLING AND EASON WHO MISUSED THE WATER AND SEWER FUNDS)
JohnofGB
Its about time the city be held accountable for the gouging of water/sewer fees. This city , on average, pays twice as much as the average resident as the desert city of Phoenix , Arizona. Go figure. A state surrounded on three sides of the greatest fresh water supply in the world and a city that draws its water from a river that disappears before it gets to the sea. The real gouging is in the "service fees" that Flint charges its citizens, over $40 for the honor of being hooked up.
babe72
we have to do what we have to do to balance the budget,so mr brown are you saying it is ok to steal from the people,or anything just so you get the money???? let this city of flint go bankrupt,start over.
Phillip LaBarge
Hey Scott it only took you 6 months to figure this out, I wonder was this done because you had nothing else to do now that you are watching Brown?
Gary Ridley | gridley@mlive.com
I asked Mr. Kincaid's attorney about why it took until now to file the suit and he said was due to the fact that they needed time to research the situation (including multiple FOIA requests)
poker4funn
It's about time someone that works in the COF administration stands up for the residents of Flint. I am tired of being bent over and holding my ankles while they keep sticking it to us. Isn't Walling still under federal investigation for misappropriation of City funds? Taking money from the other departments, one being the water department to pay other bills has been going on for a while hasn't it ? Those outrageous "service fees" are nothing more than a cash cow for the COF on the backs of its residents.
fedupinflint
Thank you Mr. Council President Kincaid. Exactly what I've been saying for years.
h20h20h20h20
Gary-please ask and tell us who is paying the attorney fees for Kincaid's lawsuit?
Gary Ridley | gridley@mlive.com
Kincaid filed the suit in his individual capacity
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Fri May 25, 2012 8:52 am |
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untanglingwebs
El Supremo
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Published: Monday, July 02, 2012, 4:48 PM Updated: Monday, July 02, 2012, 5:14 PM
By Kristin Longley | klongley1@mlive.com
FLINT, MI -- The state appeals court has dismissed a lawsuit filed by Flint City Council President Scott Kincaid over the city's water rate increases.
In an order issued Friday, the court ruled that the two water rate increases that went into effect in September 2011 and on Sunday do not violate the Michigan Constitution, as alleged in the lawsuit.
The rate increases "constitute revisions of existing user fees that do not implicate the Headlee Amendment" of the state constitution, the order says.
The court also ruled that it does not have jurisdiction over some of the other issues raised in the lawsuit, such as whether or not the city violated its own ordinance in imposing the rate increases or whether the city was improperly mixing water and sewer funds with the general fund.
Kincaid could not immediately be reached for comment this afternoon.
His attorney, Val Washington, said he plans to confer with Kincaid as soon as possible on whether or not they will file an appeal.
"Clearly we disagree with the court of appeals order," Washington said. "Stay tuned."
Flint water customers have seen a 110-percent increase in their average water and sewer rates since January 2011.
Kincaid and two Flint residents filed the lawsuit in May seeking to repeal the September increase and the 25 percent average water and sewer rate increase which just took effect Sunday under Flint emergency manager Michael Brown.
The lawsuit claimed the rate hikes were unlawful because they were implemented without approval of the city council. It also claimed that the city inappropriately transferred water and sewer funds into its general fund.
The increases have been a controversial issue in Flint recently, and have sparked numerous protests at Flint City Hall.
Kincaid was seeking a temporary restraining order against the city to put an end to the rate increases, according to court records.
The emergency manager today said the court ruling was significant because it involved about $15 million of the budget. The new fiscal year began Sunday.
Brown's administration has said the rate hikes were necessary to keep up with rate increases passed on from Detroit, as well as to cover the growing costs of an aging system that serves a much smaller population than it did in the past.
"It was a big, huge decision," Brown said. "We feel very positive."
View the order here: Appeals Court Order water rates.pdf
shanedr
The question is will the city turn off water to customers who are behind in their bills or will they let them go for months in arrears like in the past. A lot of people are not going to be able to pay these exorbitant bills. And those who do pay don't want to pay for those who don't pay.
JohnofGB
Kincaid raises some good questions that were not addressed by the court. For instance, where did the money come from to pipe in Smith Village???? And what happened to the surplus of millions that was in the water fund not so few years ago???? There needs to be an accounting.
Kristin Longley
Here's a link to the case details on the Court of Appeals website: http://coa.courts.mi.gov/resources/asp/viewdocket.asp?casenumber=310221&inqtype=public&yr=0&yr=0&SubmitBtn=Search |
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Mon Jul 02, 2012 6:25 pm |
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untanglingwebs
El Supremo
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Flint City Council members sue emergency financial manager Ed Kurtz
Published: Monday, September 10, 2012, 4:39 PM Updated: Monday, September 10, 2012, 8:15 PM
By Kristin Longley | klongley1@mlive.com
This story has been updated.
FLINT, MI -- Members of the Flint City Council filed a lawsuit today against Flint emergency financial manager Ed Kurtz, according to their attorney.
Flint attorney Glenn Cotton said the complaint was filed this afternoon in Genesee County Circuit Court.
Council members are seeking a "declaratory judgment and injunctive relief," Cotton said.
A copy of the complaint was not immediately available Monday evening.
Kurtz, who was appointed in August by the state of Michigan, said this evening that he was not aware of the lawsuit being filed today.
In response to the news, Kurtz said the Michigan attorney general has issued an opinion saying Public Act 72 -- the law that governs emergency financial managers -- is a valid law.
"Until someone says otherwise, I guess I serve," Kurtz said.
The council voted at its Aug. 27 meeting to file the lawsuit against the state's appointment of Kurtz, saying Public Act 72 is being wrongly enforced in the city of Flint.
Several residents encouraged the council to move forward with removing the emergency financial manager at the council's meeting on Monday night. Michael Killbreath, president of the Flint Area Chamber of Commerce, said the organization assisted the council with the lawsuit.
"Flint's got to take the lead," resident Eric Mays said, saying the city can set an example for other cities under an emergency manager.
The council was also scheduled this evening to begin an investigative hearing into actions of the city's former emergency manager, Michael Brown.
Council members said they would provide an update on the status of the hearing at the end of the meeting, which was still in progress as of 8 p.m. Monday.
Related: Flint City Council to investigate, file lawsuit against emergency financial manAGER. |
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Mon Sep 10, 2012 7:39 pm |
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brianstarr
F L I N T O I D
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| i say we let the city council and the grinning fool run things again as we all sit back and see how long it takes them to run this broke town into bankruptcy court since the real reason they want the efm removed is to get their power and control back and its once again not really about helping the people of this city |
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Tue Sep 11, 2012 1:28 pm |
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untanglingwebs
El Supremo
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Flint water rate lawsuit appealed to Michigan Supreme Court
Published: Wednesday, September 12, 2012, 6:45 PM
By Kristin Longley | klongley1@mlive.com
Follow
FLINT, MI -- A lawsuit over the city of Flint's water rate increases is pending before the Michigan Supreme Court.
Flint City Councilman Scott Kincaid asked the state's high court to hear the case after the Michigan Court of Appeals ruled that the water rate hikes that went into effect in September 2011 and in July 2012 do not violate the Michigan Constitution, as alleged in Kincaid's lawsuit against the city.
Kincaid's attorney, Val Washington, filed briefs in support of the appeal on Monday, according to court files.
"We are not going to sit back and let individuals pass on outrageous fees to the residents of this community," Kincaid said. "It's not right."
City Attorney Peter Bade declined to comment today on the pending litigation.
The Supreme Court can either take up the case and issue a ruling or decline to consider the appeal.
Another lawsuit from Kincaid against the city is pending in Genesee County Circuit Court before Judge Richard B. Yuille.
That complaint, filed July 3 by Kincaid and three other Flint residents, claims the 35 percent water and sewer rate increase that was imposed in September 2011 violated city ordinance and was not authorized by the Flint City Council.
A hearing date has not been set.
Related stories: Lawsuit to repeal Flint water rate hike refiled in circuit court
Kristin Longley can be reached at 810-429-5333. You can also follow her on Twitter @KristinLongley or subscribe on Facebook. |
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Wed Sep 12, 2012 7:51 pm |
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untanglingwebs
El Supremo
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| Certain county officials have estimated that city service fees account for approximately 47% of our water and sewerr bill. |
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Wed Sep 12, 2012 7:52 pm |
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