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untanglingwebs
El Supremo
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Sat Aug 08, 2015 2:14 pm |
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untanglingwebs
El Supremo
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Judge orders Flint to cut water rates 35 percent in sweeping injunction
Genesee Circuit Court Judge Archie Hayman makes ruling in Flint water case.
Ron Fonger | rfonger1@mlive.com By Ron Fonger | rfonger1@mlive.com
on August 07, 2015 at 5:25 PM, updated August 07, 2015 at 5:26 PM
Attorney Val Washington speaks and holds up a folder containing documentation of all Flint residences that have had liens placed against their properties due to delinquent water and sewer bills after increased fees went into effect in 2011.
(This story has been updated with additional information.)
FLINT, MI -- Less than four months after the city's financial emergency ended, a judge's order has city officials talking about a potential bankruptcy all over again.
The city of Flint has been ordered to roll back water and sewer rates by 35 percent, to end a ready-to-service fee, to repay its water and sewer fund by more than $15 million, and to stop water disconnections and liens for past-due bills effective immediately.
Genesee Circuit Judge Archie Hayman issued an emergency injunction today, Aug. 7, a decision city officials said has the potential to bankrupt Flint, which just emerged from a financial emergency in April.
Hayman said the city wrongfully transferred $15.7 million in water and sewer funds in 2007 to help settle a lawsuit involving sewage overflows -- money that must be returned, but told attorneys for two Flint water customers and the city to negotiate the terms of that payback.
"I am mindful that this could be devastating to the city so the court is not going to at this point make a ruling that the $15.7 million has to be paid immediately ... but that money has to be replaced at some point," Hayman said.
The city issued a statement from City Attorney Peter Bade today, saying the ruling "is striking in terms of both its deviation from Michigan law, as well as the immediate financial harm it will cause the City of Flint.
"This will have a devastating financial impact," Bade's statement says. "The City will immediately seek a stay of this order and review by the Court of Appeals."
City spokesman Jason Lorenz said the city would have no further comment on the case today, but Mayor Dayne Walling released a statement, saying, "Flint needs a sustainable water system with affordable rates and that is my objective. There are numerous problems with the judge's ruling that will be addressed through further court action."
Anthony Chubb, deputy chief legal officer for the city, asked Hayman for a stay in enforcing his ruling as the city appeals it to the state Court of Appeals, but the judge denied that request.
Chubb argued in court today that the requested injunction amounted to "a good political show" and said the ruling -- if it stands -- "would likely result in bankruptcy" for the city.
In issuing the injunction -- part of a lawsuit filed by two Flint water customers -- Hayman also:
•Told the city to eliminate a 35 percent increase in water and sewer rates enacted by Mayor Dayne Walling in 2011 because the hikes violated a city ordinance that required advance notice to customers and that requires such rate increases to be added over 12 months rather than immediately.
Hayman said the state Court of Appeals also concluded former emergency manager Mike Brown did not have the authority to ratify Walling's water and sewer rate increases when that court issued an opinion in a related lawsuit brought by City Councilman Scott Kincaid.
In June, the Court of Appeals reversed a decision by Genesee County Circuit Judge Richard Yuille, who dismissed the Kincaid lawsuit in 2013.
That case is still pending in Circuit Court.
•Enjoined the city from collecting readiness-to-service fees until it complies with a city ordinance, requiring officials to justify those charges in writing.
Hayman said the fees -- which amount to a $57.38 fixed charge for a typical residential customer -- can be collected but not without the city taking that step.
City officials have said those fixed charges support maintenance of the water and sewer systems.
•Enjoined the city from enforcement of water liens and water disconnections because of past-due bills.
Attorney attorney Val Washington said liens have been filed against more than 13,000 homes and businesses in Flint based on "illegal water rates."
•Ordered attorneys for the city to negotiate with Washington on how to pay back $15.7 million that was "wrongfully taken" from water and sewer funds.
"There's no ordinance that allows for that," Hayman said. "State law does not allow for that. The mayor at the time did not have the authority to go in and invade the water supply account."
Flint's mayor at the time of the transfer was Don Williamson.
Hayman told attorneys to work toward a plan for payback of the $15.7 million to the water and sewer fund by the end of October -- before returning to court Nov. 13.
Washington said the city has been unwilling to negotiate a settlement of the lawsuit, which was filed by Flint residents Larry Shears and Margaret Fralick in 2014.
terrybankert
The ruling is the first step towards accountability. Negotiation will keep the city solvent.
terrybankert
WALLING ILLEGALLY BALANCES HIS BUDGET ON THE BACKS OF FLINTS TAX BURDENED CITIZENS!
"The thought of people being put out of their homes because the water has been cut off and it's been cut off illegally is very emotional to me," said attorney Val Washington.
WJRT
FLINT (WJRT) - (08/07/15) - A circuit court judge ...Honorable Archie Hayman ...ruled that a water rate hike, made years ago in Flint, was illegal.
"It gives us another black eye actually in the city of Flint and it's something we didn't need to have. Because the judge clearly, he clearly stated that the 35 percent increase, the rate increase of the water that was issued back in September of 2011 was illegal," said Dr. Karen Weaver, mayoral candidate.(ABC12)
"Hayman said the city wrongfully transferred $15.7 million in water and sewer funds in 2007 to help settle a lawsuit involving sewage overflows -- money that must be returned, but told attorneys for two Flint water customers and the city to negotiate the terms of that payback. "Mlive/Fonger
This" ...is what happens when you try and borrow your way out of debt. " mlive comment Fonger article
"In issuing the injunction -- part of a lawsuit filed by two Flint water customers -- Hayman also:
Told the city to eliminate a 35 percent increase in water and sewer rates enacted by Mayor Dayne Walling in 2011 because the hikes violated a city ordinance that required advance notice to customers and that requires such rate increases to be added over 12 months rather than immediately."Mlive/Fonger
Hayman also ordered "Enjoined the city from collecting readiness-to-service fees until it complies with a city ordinance, requiring officials to justify those charges in writing.
Hayman said the fees -- which amount to a $57.38 fixed charge for a typical residential customer -- can be collected but not without the city taking that step.
City officials have said those fixed charges support maintenance of the water and sewer systems."mlive/Fonger
Poor people have lost their homes because of their illegal water bills.
Hayman also ordered"Enjoined the city from enforcement of water liens and water disconnections because of past-due bills.
Attorney attorney Val Washington said liens have been filed against more than 13,000 homes and businesses in Flint based on "illegal water rates."
"Ordered attorneys for the city to negotiate with Washington on how to pay back $15.7 million that was "wrongfully taken" from water and sewer funds."Hayman
"There's no ordinance that allows for that," Hayman said. "State law does not allow for that. The mayor at the time did not have the authority to go in and invade the water supply account."Hayman
"Washington said the city has been unwilling to negotiate a settlement of the lawsuit, which was filed by Flint residents Larry Shears and Margaret Fralick in 2014."mlive/fonger
"Hopefully this will curtail Flint and other municipalities from using their water and sewer departments as cash cows to raise revenue for the general fund." Mlive comment Fonger article
"If the rate hike is illegal I believe the city owes us a refund. Will we have to take them to court to get it." Facebook /Pruitt
A "... question remains, which public official is going to be criminally charged for knowingly, willfully and wantingly implementing this policy? Who? When?In addition, several have suggested an immediate comprehensive audit of the water and sewer department general ledger accounts beginning ONE YEAR PRIOR to the implementation of this policy. I agree.
Lastly, no one person is above the law. If Walling violated the law, subsequently covered it up and based year after year budgets on a criminal enterprise impacting ALL citizens, he should submit his resignation ASAP and hire a good defense attorney.
Any good Hollywood writers and producers following the saga of Flint? One can not make this stuff up."mlive commentator Jeffrey Fillmore
“Flint needs a sustainable water system with affordable rates and that is my objective. There are numerous problems with the judge's ruling that will be addressed through further court action.”said protector of Flint's Downtown Mayor Walling.
Children are living in homes without running water because of these illegal water bills.
"Our current Mayor Walling is clearly responsible for this illegal tax on the citizens of Flint. He will be gone soon . Mayor Weaver will be up to the task of protecting Flint Citizens."Terry Bankert
MAYORAL CANDIDATE KAREN WEAVER
"What the Mayor did was illegal! Today was a wonderful day for the citizens of Flint. Walling was exposed today. Thank you Judge Hayman and Attorney Washington for speaking up for the people of Flint"said Flint's soon to be Mayor Karen Williams Weaver
Ted Jankowski
Well Looks like Judge Hayman's days are numbered. The Governor isn't going to like this ruling. but that's OK. Wait until the Atty Gen. chimes in.
Finally, some justice for those who have been ignored in the city of Flint. Those are the residents who do not have the resources to defend themselves. Although the city's power structure refuses to come to the aid of those most in need of fairness and continue to support the current mayor, I see two lights at the end of the tunnel. One is a change in the city's current leadership, so called, in November. The other is the new water line moving toward Flint thanks to the very capable leadership of Jeff Wright. I see two lights...
djburtucky .
djburtucky .
By the way what has ever become of the Flint Public Safety Millage of 2012.... From what I hear, there are less cops and firefighters..... Is the city paying anymore funds to the public safety not.... http://www.mlive.com/news/flint/index.ssf/2012/11/flint_public_safety_millage.html
Blue407
That money was stolen and placed into the general fund.
djburtucky .
djburtucky .
Hopefully this will curtail Flint and other municipalities from using their water and sewer departments as cash cows to raise revenue for the general fund.
Ron Fonger | rfonger1@mlive.com 21 hours ago
I've updated this story with additional information about the ready-for-service charge and a statement issued by Flint Mayor Dayne Walling.
ic23b
Walling raised the water and sewer rates 35% in 2011 not because Detroit raised the price 7.5%, he had to raise it to meet the repayment requirements from the water and sewer loans he and city council borrowed from the State. Without the increase Flint will be unable to meet the payment requirements and will default on the loans. This ruling will be the nail in the coffin for Flint, but that is what happens when you try and borrow your way out of debt.
downtownres
@ic23b What a true statement. I think this is the nail in the coffin for me. I need to get out of this city. I've been telling my boss he needs to move his well established business south of Flint or maybe farther. There is no saving the city. It's bad enough that a city this size has to borrow that amount of money for a lawsuit. They must be way under insured If they can get insurance and it insurance is available to.them, but when I look at Washington, D.C., and think of what they borrowed from China. What a bunch of BS. We are supposed to be the Super Power of the World. Now we are just a joke. Get the GD Dems out of office. They can't punch their way out of a wet paper sack. |
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Sat Aug 08, 2015 2:30 pm |
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untanglingwebs
El Supremo
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Karen Weaver was the guest on the Pastor's radio show this morning and the water situation was discussed.
Aonie Gilcreast had called in with some factual details on Walling's past. Then Donna Poplar called in with some venomous comments regarding Weaver and vigorously defending Walling. (Makes one wonder if she has been promised another job in the Walling administration now that the Emergency manager is gone. Remember how she and Sisters United (a 501(C4) made videos for Walling to be run on Channel 17 and she later became the HR Director.
Note: Kate fields did the same kind of video and got DOE grant that was rescinded for being improper. She also got the energy portion for Flint Housing and the NSP grant involving Operation Unification.
According to Poplar it is perfectly legal to use the water and sewer funds . She failed to mention that former Michigan Treasurer addressed this issue when he did his initial investigation into Flint finances. He stated there was no loan set up for these transfers and no repayment plan with interest. Seems she knows more than the professionals. |
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Sat Aug 08, 2015 2:47 pm |
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untanglingwebs
El Supremo
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A pastor hung up on Poplar. An angry unnamed caller challenged Poplar's veracity and commented on Poplar's past and the fact Poplar does not live in Flint. She too wanted to know if Poplar was again searching for a job. The caller then chastised Poplar for not attending council or being active in the public. "Not everyone is a thug like you", said the caller.
When Poplar challenged Weaver about her past employment, Weaver struck back and told Poplar that she was misinformed. |
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Sat Aug 08, 2015 2:57 pm |
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untanglingwebs
El Supremo
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Sat Aug 08, 2015 3:01 pm |
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untanglingwebs
El Supremo
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Sat Aug 08, 2015 3:35 pm |
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untanglingwebs
El Supremo
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Williamson was in office in 2007. However the initial claims occurred during the Stanley administration and continued though the recall, Rutherford and Mike Brown, as Emergency Manager. The same attorneys kept saying the City could win the case.
The interest kept growing. |
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Sat Aug 08, 2015 3:36 pm |
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