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untanglingwebs
El Supremo
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Judge weighs whether to dismiss lawsuit alleging illegal Flint water rate hikes
By Kristin Longley | klongley1@mlive.com
on February 15, 2013 at 1:30 PM, updated February 15, 2013 at 1:46 PM
FLINT, MI -- A judge heard arguments in court today on whether he should dismiss a lawsuit accusing the city of Flint of violating its own ordinance when it raised water and sewer rates in 2011.
The lawsuit, filed by City Council President Scott Kincaid and three other residents, claims the city didn't follow the proper process for raising its water rates and that the city improperly spent the funds.
But an attorney for the city of Flint told Genesee County Chief Circuit Judge Richard Yuille that the city is not inappropriately using the funds.
Assistant City Attorney John Postulka also said that, "even if (the city) did violate" guidelines for raising rates in 2011, the water and sewer rate increases were later ratified by the emergency manager when he ordered another rate increase in April 2012.
"(The emergency manager) has the power to take actions to rectify the financial emergency," Postulka said. "Including actions against city hall."
He further argued that the lawsuit should be dismissed because Flint has governmental immunity against the claims made in the lawsuit.
Yuille didn't make a decision this morning, but attorneys said he could issue a ruling at any time now that he heard oral arguments from both sides.
Kincaid's attorney, Val Washington, argued that the city violated its own ordinance by not giving proper public notice of the increases. Then, he said, the city "systematically raided" the water and sewer funds, contributing to a deficit.
"They took the money and paid the general bills," Washington said, urging the judge to "make them spend water and sewer payments as authorized by (state law)."
Postulka, however, countered that the city followed proper accounting practices in spending the funds on general obligations. He said it's a practice used in other counties in Michigan.
"Are you saying it's OK to go into those funds?" Yuille asked.
Postulka responded: "Absolutely, as long as you account for those funds, and that's what the city is doing," he said. "There was nothing inappropriate."
The lawsuit says Flint water customers should be refunded the increased amount they've paid since September 2011.
The judge questioned what would happen if the refund were awarded, asking if the current or next emergency manager could simply raise the rates again -- possibly even higher to make up for the refund.
"Who wins here?" Yuille said.
Washington said he couldn't speak to what happens next under the new emergency manager law that's set to take effect in March.
Water rates have been a hot topic in Flint for more than a year. Flint water customers have seen their average water and sewer rates increase 110 percent since January 2011.
artznow
The issue here I think is how can they raise water rates as a new form of taxation. Money was taken out of the water fund to keep the city afloat (which is normally done with taxation) and then raised water rate increases to put back into the fund.
shanedr
Illegal earlier actions are not rendered valid by later actions. And the EFM is not authorized to order rate increases that violate state law. As such, any judge that does not bring this suit to trial is likely to face being removed from the bench and possible disbarment.
artznow likes this.
artznow
He (the Judge) is just helping a friend out. Ain't this how Flint has always operated. I say let it go bankrupt. |
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Fri Feb 15, 2013 7:33 pm |
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untanglingwebs
El Supremo
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Sheldon Neeley has a radio show every Saturday at 9;00 am on WFLT 1420. Sheldon was not there today but his co-host Candace read announcement from Kurtz and Brown that effective immediately the cost for water turn ons will increase to $350.00.
A C Dumas was present at the court case yeaterday in Judge Yuilles's case and he speculated that Kincaid and his fellow plaintiffs might win the case which calls for money to be repaid to water customers back to a date in 2011. Dumas also indicated another water rate hike is in Flint's future.
Could this increase be retaliation for the lawsuit that alleges Flint is illegally using the water and sewer funds to shore up the city finances?
Kurtz just posted a 19 page rate fee schedule for the city that appears to raise many costs, especially for building or remodeling homes. This can't be the way to encourage new residents to come and live in Flint.
Last edited by untanglingwebs on Sat Feb 16, 2013 4:01 pm; edited 1 time in total |
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Sat Feb 16, 2013 3:59 pm |
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untanglingwebs
El Supremo
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This rate increase is so new it is not on the city website yet.
Sheldon will return to the air next week so be sure to listen and call in for answers. |
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Sat Feb 16, 2013 4:01 pm |
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untanglingwebs
El Supremo
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I watched this story air and thought the station did a good job!
Lawsuit alleging Flint's water rates are unlawful goes to judge
Posted: Feb 15, 2013 10:38 PM EST Updated: Feb 15, 2013 10:46 PM EST
By Andrew Keller, Multimedia Journalist - bio | email
FLINT, MI (WNEM) -
Roderic Morrell says with gas prices the way they are, filling up his Mustang so he can get to his job in Lansing is not cheap. Neither is his mortgage payment, car insurance and the overall costs of supporting his wife and three kids.
To make matters worse, he's paying a premium price for Flint water.
"Hey, hey, turn that water off," Roderic Morrell told TV5 when asked what he tells his children when they use the water.
Morrell said that's the reality right now. His water and sewer bill in January was $290.
Val Washington said he paid about $210 last December. He claims it's cheaper to buy water and put in his refrigerator rather than run the water from his tap. He also takes his showers at the gym to save from the increased cost.
"It's as though you're getting a tax bill every month," said Washington.
Washington is the attorney behind a lawsuit filed by Flint City Council President Scott Kincaid and other Flint residents. They're accusing the city of illegally raising water and sewer rates and using the money to help pay its bills.
"The money that is collected from water and sewer rates is supposed to be used solely to repair, maintain, operate or to pay debt service on water or sewer related entities or enterprises or operations, and that's not happening," said Washington.
Washington claims that not only is the city using the funds improperly, the city did not follow due process in increasing the rates. Since 2011, water rates in the city have jumped 110 percent. On Friday, he stated his case to Genesee County's Chief Circuit Judge.
"How is my Flint government operating and are they following the rules as they should be? They're not, and they need to be made to do so, because they aren't going to voluntarily," said Washington.
The judge did not make a decision of whether this lawsuit should move forward. TV5 got a hold of the city to get their take on this. Spokesperson Jason Lorenz said the city will not comment on pending litigation.
If this lawsuit is successful, Washington hopes it will slash water and sewer rate increases and refund of the increased amount the residents have paid since September 2011. |
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Sat Feb 16, 2013 5:01 pm |
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untanglingwebs
El Supremo
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Flint raising rental home water deposits to $350
By Kristin Longley | klongley1@mlive.com
on February 25, 2013 at 5:30 PM
Print
FLINT, MI -- Flint's emergency financial manager is raising the amount of the city's rental home water service deposit from $100 to $350 beginning March 1.
By raising the deposit amount, the city is trying to recover its losses from people who don't pay their bills, and cover more of the costs associated with water shutoffs and renters who leave their homes without paying the balance.
"When residents don’t pay their water bill for months at a time, that cost is passed on to those residents who do pay, and that’s just not fair," emergency financial manager Ed Kurtz said in a statement.
The deposit is charged to renters when they move in to a rental home in Flint.
The increased deposit, along with the $75 water-turn-on fee, will create more of a hardship for people on fixed incomes who want to rent a home in the city, said Terry Hanson, executive director of the Genesee Landlords Association.
He said the city should instead be more aggressive in collecting overdue water payments, rather than allowing bills to become more delinquent over time.
"(The higher deposit) will cause more properties to become vacant and more people to leave the city," Hanson predicted. "We are definitely not in favor of it."
Since January 2011, the city has raised its average water and sewer rates more than 110 percent -- increases city officials say were necessary to cover rate hikes from Detroit, the costs of an aging system and increasing legacy costs.
Kurtz has said the city is still evaluating its current water and sewer rates, and will likely announce any rate changes during the budget process in April or May. The city of Detroit recently proposed it would up its charge to Flint by 4.4 percent.
Kurtz's office said there is currently about $2.8 million owed on about 5,000 water deposit affidavits in Flint.
Increasing the water deposit amount will put collection from renters more in line with collection from property owners, he said.
The balance of a property owner's bill is placed as a lien on the property tax roll, but "there is currently no effective system of collecting water affidavits that are not in the property owner's name," the statement says.
The $350 charge is in the "middle range" compared to other Genesee County communities, his office said.
But Hanson said Flint's base rate for water bills is higher than other communities.
With Flint's administrative fees, what the city calls its "readiness-to-serve" charge, the base rate for Flint water bills before water usage is added on is about $54.
A lawsuit against Flint's water rate increases is pending in Genesee County Circuit Court.
Kurtz's office said water shutoffs are usually an effective tool to get residents to pay their overdue bills, but there are still a "large number" of residents who leave their homes without paying.
"The result is an increase to the cost of water for all customers to recover the unpaid balances," he said.
Kristin Longley can be reached at 810-429-5333. You can also follow her on Twitter @KristinLongley or subscribe on Facebook.
Getyokids
Good , that ought to keep the thugs out of Flint. Let them go rent somewhere else.
turnFLINTaround
Well, that should attract more people to Flint!! Once again, the leaders of Flint can't do their job, and then try to get the public to pay for it. The city needs to turn water off for non-payment much sooner than it appears that they do. I bet tenants that fall behind on their rent and get evicted won't be able to afford to pay the water deposit (plus a rent deposit and first month's rent) to get it turned on at the next home. They'll either turn it on illegally, or move outside of Flint. Dare I wonder what they'll do to us next?
427435
In Davison, the deposit is $175. If the renter leaves and the deposit doesn't cover it, it is the property owners responsibility to make up the difference, not the other customers. The reason I made the renters put the water in their name is that you have no control over the amount of water they use. With today's water costs I would have to charge $250 more in rent per month just to make sure I had enough money to pay the water bill. When the renters pay and are faced with a $500 fee to turn the water back on if the city shuts it off, they usually are paid up. (And the girls in the Davison City office do an excellent job of working with the renters.) I also have the renters put the Consumers in their name and that bill goes with the renter. I had one renter that owed Consumers $7600. I bet all us Consumers customers covered that bill. Glad that I got out of the rental business.
bodrell
How can a person possibly run up a $7600 Consumers bill????
Not calling you a liar, because I have heard similar stories. I just don't get how that happens.
I get ten days behind on a $120 Consumers bill and they are auto-calling me threatening death, dismembership and service shut off if I don't pay them right quick.
Did I miss a "gaming the system" class?
Chris
They should take after Consumers Energy. If you behind by only a couple months, they will shut you off. Plus, they have a great program called a budget program. I pay the same amount every month. No worries about what the bill might be, its always the same.
odrell
Well THAT will certainly make Flint a more likely destination for potential residents in a desperately poor county.
Especially when Burton and Mt Morris Twp/Beecher requires less than half of that for renter deposits.
Way to go, Flint! Again, another well thought-out strategy for making money from your residents.
And how is that working for you so far?
Watchin'myBirdie
Once again the City Of Flint and its failed policies are cause to extort more money from its residents. If the COF would shut of water after 60 or 90 days past due instead of waiting for a bill to be delinquent for 12 to 18 months before they take action this would not be an issue. Just stick it to the residents that are left or rape a new resident upon entrance, "welcome to Flint- open your wallet and pay for those that don't "
The mass exodus of any actual tax paying citizens will continue. A resident in Flint pays some of the highest tax rates in the state, has to pay city income tax on top of that, and the services from the city to its residents are lackluster minimal at best. The city as a whole looks like a 3rd world country at war, the crime is rampant and out of control.
Why, and I do mean WHY ?? would a person or family want to move within the COF??? I have lived here 25 + years and have witnessed 1st hand the decay and destruction. I cannot see it ever getting better until the COF can remove the cancerous violent destructive residents that seem to be about the only thing left in this city
goodstuffguy
Question: Are these deposits held in some sort of trust account or can the city spend all or some portion of them?
shanedr
What they're really trying to do is get the landlords to keep the water in their own name so the city doesn't have to deal with name changes. The real problem is the city doesn't make shut-offs when they should and wait months if not a year before they actually turn off the water.
nosnownhell
Reward people for bad behavior by making those that do right pay for the bad acts of others will make way for more empty houses in Flint. |
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Mon Feb 25, 2013 9:47 pm |
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untanglingwebs
El Supremo
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I have to agree with so many of these comments. They are absolutely correct that the city does not follow ordinances and does not shut the water off.
Many years ago the Flint Council implemented an ordinance specifying a dollar amount (I believe $300) for overdue water bills and anything over that amount was subject to a shut off notice.
Then the city implemented a policy of sending past due water leins over to the county so they could get reimbursed. Some of these water leins were huge. These leins stayed with the property in cases of tax foreclosures.
I was at a community meeting when the $1300 water bill of a Flint City Councilman was discussed. The conversation was how this councilman kept high bills and only paid up for his elections. Nor is he the only council person in Flint's history to run up a high water bill. Former Councilman Mark Horrigan had his large overdue water bill discussed in a Council meeting. Residents deserve better behaior from their elected officials. |
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Mon Feb 25, 2013 9:59 pm |
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Dave Starr
F L I N T O I D
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| Just another way to keep the "undesirable" low income people out of Flint. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Tue Feb 26, 2013 8:22 am |
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J HUNTINGWORTH TUNE
F L I N T O I D
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| I have no problem with this increase,if it speeds the gentrification of Flint.Webs,,If it's yellow,let it mellow.
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Tue Feb 26, 2013 9:21 am |
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untanglingwebs
El Supremo
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Flint loses more than a quarter of its water, says emergency financial manager
By Kristin Longley | klongley1@mlive.com
on February 27, 2013 at 4:50 PM, updated February 27, 2013 at 4:51 PM
FLINT, MI -- The city of Flint is losing an estimated 25 percent to 30 percent of its water because of theft, frequent fires and water main breaks, emergency financial manager Ed Kurtz said.
Kurtz revealed the problem at a news conference Wednesday, Feb. 27, saying his office is working on how to recover those losses as it's developing next year's budget.
"We're looking at that right now," he said. "We're probably not done with water."
Kurtz has said his office hasn't determined yet whether water rates will change for the next fiscal year that starts July 1.
On Wednesday, Kurtz said the city has a "significant problem" with water theft from two standpoints: companies that bypass the water meter and others who turn residents' water back on after the city has shut it off.
He said the city also does not meter water used by the fire department at the scene of a structure fire -- and Flint has one of the highest arson rates of large cities in the nation.
Kurtz said the city is taking steps to try to recover its losses, including responding faster to water main breaks, another area where water is lost. A break in one of the city's largest water mains cost $1.1 million in repairs and lost water, officials said in May.
"And we're looking at putting more staff toward the issue of theft," he said.
The city is also exploring the possibility of outsourcing water shutoffs. Currently, the city has enough staff to do about 120 shutoffs per week but many more customers -- "maybe a thousand," he said -- are eligible for shutoffs.
The city has raised its average water and sewer rates more than 110 percent since January 2011. City officials said the increases are due to rising legacy costs, population loss, rate increases from Detroit Water and Sewerage and maintenance of an aging system.
"A lot of (the delinquent bills) are from people who have lived in the city their whole lives and now they're getting to a position where the water is so expensive they can't pay it," he said. "It's a real difficult issue to deal with, but at the same time... that's something we have to deal with."
The city is also considering metering the water used to put out fires and then billing the insurance companies.
"We do have the ability to meter at the hydrants," he said.
Kurtz said many of the structure fires in Flint occur at homes owned by the Genesee County Land Bank, a public entity with which the city often partners to demolish vacant houses in Flint.
"Do we bill the Land Bank (for hydrant water) and tear down less vacant properties, or do we forgive that and tear down more?" he said. "It’s a lose-lose, either way."
Earlier this week, the city announced it would raise the water deposit charged to renters when they move in.
The charge will be increased from $100 to $350 to recover losses from people who don't pay their bills, and cover more of the costs associated with water shutoffs and renters who leave their homes without paying the balance, Kurtz said
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There are 4,843 renters in Flint who receive a water bill (as opposed to the bill going to a landlord). Of those, 4,029 of them -- or 83 percent -- are delinquent on their bills to the tune of about $2.8 million, city officials said.
Kurtz said the city is considering an ordinance change that would require landlords to notify the city if a tenant has left a rental home.
"We are investigating all the avenues," he said.
dennis_robbins
The Landbank is one of the biggest scams in flint!
packanimal
The city put a orange and white striped sawhorse on my street about a 4-5 weeks ago. About 2-3 weeks after, a man in the city of Flint pick-up truck stopped and got out and looked at the water leak. It was just one leak then. When I took out the trash Monday night, I walked over and checked it. We now have about 7 leaks along a much larger strip of water pipes. I called and left a message with the water department Monday night-no call back. Tuesday I actually got a person and reported it to her.
A few years back there was a water leak on Pershing running down into Court ST. I contacted the city and they said they knew. When they turned on the water it leaked for the new tenants and they were giving them 10 days to get it fixed. The leak was where the street pavement butted up against the end of the driveway. Zoom ahead about 6 weeks, the water leak is still running and I called again. When the city finally got around to fix the break, they had to block off the road and it took longer than it should have. Now go ahead a few more weeks and guess what ? The water department was back in action at the same place, this time having to replace almost the whole road width and a much bigger length of road to fix the water leak problem.
And they wonder why they are loosing water. How about through negligence. When a water leak report comes in, it should be fixed immediately. Letting water leaks continue for weeks and months only makes these repairs more costly and takes longer and also leads to more work because of the erosion non=stop running water causes.
Can anyone say SINKHOLES ? |
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Wed Feb 27, 2013 7:14 pm |
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Dave Starr
F L I N T O I D
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The city of Flint is losing an estimated 25 percent to 30 percent of its water because of theft, frequent fires and water main breaks, emergency financial manager Ed Kurtz said.
Kurtz revealed the problem at a news conference Wednesday, Feb. 27, saying his office is working on how to recover those losses as it's developing next year's budget.
"We're looking at that right now," he said. "We're probably not done with water."
Kurtz has said his office hasn't determined yet whether water rates will change for the next fiscal year that starts July 1.
BOHICA - bend over, here it comes again! |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Feb 27, 2013 7:17 pm |
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untanglingwebs
El Supremo
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"A lot of (the delinquent bills) are from people who have lived in the city their whole lives and now they're getting to a position where the water is so expensive they can't pay it," he said. "It's a real difficult issue to deal with, but at the same time... that's something we have to deal with."
Ed Kurtz
J HUNTINGWORTH TUNE I have no problem with this increase,if it speeds the gentrification of Flint.Webs,,If it's yellow,let it mellow.
Dave Starr Just another way to keep the "undesirable" low income people out of Flint.
_______________________________________________________________________
The high water bills are only part of the increased costs of living in Flint that is driving seniors and those on fixed incomes out of Flint. The Master Planning Commission has documents showing they expect 20,000 residents to leave Flint before the next Census in 2020. The preliminary data indicates the population is most likely below the 100,000 level and forewarns many financial cuts in our future. Genesee County government may be the recipient of federal HUD funds for the City.
I was at a recent meeting in the north end when a resident asked a member of the City Planning Team if they were trying to eliminate the north end. Wth all of the emphasis on the area surrounding downtown and the New Urbanism concept, it is only to be expected that north end residents realize they are being left out.
Where is the City planning on locating their urban farms and wetlands? The most vacant land is in the east side and the north end. Since the city discussed area already vacant, that is the logical choice for these enterprises.
Who is controlling the gangs? Is gang activity allowed in some areas because the city administration and Snyder don't care about these areas of Flint.
There were residents in the Ramona Park area of Metawaneenee that were adamant they were not going to move. There were comments on this site about attempts to force them to leave. They finally left because they could not tolerate the relentless gunfire at night and the arsons in their area. The area is being demolished, including the homes of those who did not want to leave,
Who is controlling the gangs or who is allowing rampant gang activity in specific neighborhoods slated for reinvention? |
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Wed Feb 27, 2013 7:35 pm |
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untanglingwebs
El Supremo
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41-07-107-027
Address:
717 LOYOLA LN
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Owner:
LAWLER, BERNARD & WF MARY
717 LOYOLA LN
FLINT, MI 48503
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Current Year (2012)
Previous Year (2011)
State Equalized Value
45500
60800
Taxable Value
45500
60800
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2012 Taxes
Summer Taxes
Winter Taxes
Original Tax
$1,741.69
$485.00
Penalty
$0.00
$0.00
Water Lien
$1,312.35
Special
$209.05
$0.00
Paid To Date
$3,263.09
$485.00
Balance Due
$0.00
$0.00
--------------------------------------------------------------------------------
EFFECTIVE MARCH 1, 2012 ALL REAL PROPERTY TAXES FOR 2011 AND PRIOR YEARS ARE PAYABLE AT THE GENESEE COUNTY TREASURER'S OFFICE, 1101 BEACH STREET
Search Genesee County Delinquent Tax Information
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The taxes must have been paid in a timely basis as there is no penalty. The water is recorded as a lein which probably means it was recorded as such in anticipation of moving it to the county on march 1st.
Since the ordinance is a much lower amount, why was Lawler allowed to have such a high water bill. Some lesser know homeowners have had higher leins. |
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Thu Feb 28, 2013 12:51 am |
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J HUNTINGWORTH TUNE
F L I N T O I D
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I understand that a 30% loss in water is typical for municipalities throughout the USA.To some extent this is due to too little preventative maintenance and certainly to aging systems.In fact the entire infrastructure of this country is increasingly brittle and outdated.
Have the powers that be given up on the north and east sides of Flint ? I expect so.If Flint is to survive it will be through the institutions of higher learning ..Mott,UofM,Kettering and Baker.Not Obama's welfare class.
Neighborhoods largely composed of the unemployed,uneducated,and generally useless are going through the death throws in microcosm we see in third world failed states.The strong form roving gangs that prey on the frail.Cannibalism is in the offing. |
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Thu Feb 28, 2013 10:15 am |
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