COLDWATER, MI (WTVB) – A class action lawsuit against the Coldwater Board of Public Utilities (CBPU) regarding alleged overcharges faced a dismissal hearing on Thursday, with specially appointed Judge John Hallacy of Calhoun County presiding.
Filed by resident Jason Mate on behalf of 7,000 electric customers, the suit claims the city improperly calculated a 6.5% charter fee, resulting in roughly $3 million in annual “unjust enrichment” for its general fund, totaling over $12 million.
The hearing lasted just over thirty minutes with attorneys from both sides making arguments centered around the terms gross revenue and gross income
Greg Handley from the firm Kickham Hanley argued that the city miscalculated a 6.5% charter fee by basing it on gross revenue rather than gross income, resulting in over $12 million in “unjust enrichment” for Coldwater’s general fund.
Elise Lisznyai, representing the City of Coldwater, maintained the city’s argument insisting that the payment-in-lieu-of-taxes (PILOT) transfers are legally required by the voter-approved 1960 city charter. She said language in the charter is clear on the definition of gross income citing section seven 15.9A of the city charter that states CBPU has to make payments annually to the city, it determines what the payment is using the 6.5 % gross income language, and that the charge or payment it’s self is also classified as an expense.
Judge Hallacy did not rule on yesterdays hearing saying the court would take the arguments under advisement and issue a written ruling at some point but did not specify when that may come.
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