(COLDWATER) - A public hearing at tonight's Coldwater City Council meeting is expected to draw attention to an ongoing class-action lawsuit over city utility fees -- a case that could affect thousands of local customers.
The meeting begins at 5:30 p.m. Monday on the upper floor of City Hall, where residents are expected to speak about the dispute involving the Coldwater Board of Public Utilities (CBPU). Meetings are typically streamed online via the City of Coldwater's Youtube Channel .
The Coldwater Daily Reporter states the lawsuit alleges the city overcharged roughly 7,000 customers by calculating a 6.5% "payment-in-lieu-of-taxes" (PILOT) fee using gross revenue instead of gross income.
Attorneys for the plaintiffs claim that method generated more than $12.9 million for the city's general fund between 2020 and 2024.
City officials deny wrongdoing, arguing the transfers are required under the city charter approved by voters in 1960.
The case, filed in December on behalf of resident Jason Mate, is expected to move slowly through the courts. A hearing on the city's motion to dismiss is scheduled for June 11, and legal experts say the dispute could extend into 2027 or beyond if appeals are filed.
In the meantime, the CBPU continues to collect the disputed 6.5% fee, and residents should not expect immediate refunds or rate reductions.
Tonight's council meeting marks one of the first public opportunities for residents to voice concerns about the lawsuit and its potential impact on utility bills across the community.