COLDWATER, MI (WTVB) – The City of Coldwater and its Board of Public Utilities (CBPU) are facing a class-action lawsuit alleging that the municipality has been overcharging residents through illegal “payment-in-lieu-of-taxes” (PILOT) fees.
The complaint, filed in Branch County Circuit Court on behalf of resident Jason Mate in December of last year , claims the city’s 6.5% PILOT on the electric fund violates state law and its own charter. Specifically, the suit argues that the city calculates the fee based on gross revenue rather than gross income, failing to deduct nearly $33 million in power supply costs and resulting in over $12 million in improper transfers to the general fund between 2020 and 2024.
While the city maintains that the fees are authorized under a voter-approved 1960 charter, the plaintiffs contend the current collection practices are excessive and lack the legal justification required for such tax-equivalent payments.
Are you kidding me? Amanda O’Boyle in a news release last Friday characterized the claims as “baseless” and stated the city intends to mount a “meritorious defense”.
That is a direct slap in the face to the people of Branch County. If that isn’t the face of tyranny straight from the horse’s mouth. Then I don’t know what is. I think a couple extra things should be thrown on top of that lawsuit.
But Friday she said it had no merit and this says she notified city council that suits like these have already been settled. Was she deceiving us Friday or now?