Dabbs, others file lawsuit against Mitchell, City of Bryant

By Martin Couch

Bryant mayoral candidate Jill Dabbs is making a push in her campaign just before the Nov. 2 election and has also filed a lawsuit through the Saline County's Circuit Court, Division 2, seeking an immediate injunction against the City of Bryant to stop an increase in rates for water and sewer services charged to its citizens.[more]

The increase is set to go into effect on Jan. 1, 2011 and, according to the suit, has been set in violation of existing city ordinances.

"I am fighting for you, as are three other concerned citizens who have joined with me, to protect you from potentially excessive water rate increases that are being passed along to you by the City Council and Mayor Larry Mitchell in violation of their own laws," Dabbs said in a press release. "It affects you, and if it isn't stopped by this lawsuit, it will result in a whopping 15 percent rate hike in your water and sewer bills on Jan. 1."

Dabbs is joined by Ricky David Tripp, Tara Mink and Randy Coger in the lawsuit.

The petitioners are also seeking an order from the court finding that a rate change effective on Jan. 1, 2010 also violated existing city ordinances, says the suit.

"In a town growing like Bryant, water rate increases are going to happen from time to time, but we have laws in place that require a review process by engineers and field experts to be engaged, so that when Bryant does raise those rates, they do so by the smallest amount possible and justify the increases," Dabbs said. "That helps minimize the impact to you and insures that rate increases are fair, productive and not excessive."

The suit says the ordinances in question are 2008-35 and 2008-36, which were both signed by Mitchell. In addition to setting rates for water and sewer services at that time, these ordinances also set forth the process Bryant must use to set rates in the future. They support a 20-year plan designed to ensure Bryant would have the money necessary to build and maintain quality water and sewer infrastructure, while providing services to citizens at the lowest possible cost.

According to the suit, the ordinances ensure minimal cost to users by requiring annual reviews of rates and total revenue generated along with the current assessments of system needs during 2009 and 2010. They require that any rate changes in water and sewer charges be made after completion and review of these annual studies.

The changes in rates are made after completion and review of these annual studies, the suit continues. Ordinances 2009-27 and 2009-28 were passed in December of 2009 to amend the original ordinances 2008-35 and 2008-36. The lawsuit contends that none of these rate changes comply with the requirements in the original ordinances and that the changes in 2009 were invalid. The petitioners are asking the court to order current rates back to their last valid setting in 2008.

In addition, the suit states, the second set of rate changes in 2009 were asked to be declared void and illegal due to the city's failure to comply with the requirements set forth in the 2008 ordinances.

Specifically, an annual review by Mayor and the City Council required to take place before Aug. 30, 2009, did not take place until spring of 2010, the suit says. This was after the rate increase for 2010 had already become effective and shows "a lack of proper diligence on the part of the Mayor and the Council".

The annual review required to be completed by Aug. 30, 2010 still has not taken place, Dabbs' release continued. "This shows a pattern of flagrant disregard of the ordinances by the respondents," the suit charges.

To date, no annual review as called for in the 2008 ordinances has been conducted that would support the Jan 1, 2011 increase, the petitioners state. "Consequently, respondents have not only violated the statute, they have violated the trust of the people by not living up to their promise two years ago to charge no more than absolutely necessary for city water and sewer services," it said.

The complaint continued that the failure to conduct these reviews creates the danger that sufficient funds will not be available to properly pay for maintenance of and additions to Bryant's infrastructure, or that these additions will be pursued at undue cost to the citizens. These services bear directly on the quality of daily life for every person in Bryant who uses them, the suit alleges, adding, “Maintaining adequate service at minimum cost is vital for the health and well being of the community as clearly recognized in the 2008 ordinances.”

"Mayor Mitchell and a majority on this City Council thumbed their noses at the law and raised your rates without the required reviews," Dabbs said. "The deadline passed unnoticed on Aug. 30 — and until this lawsuit was filed, a 15 percent increase would have happened unchallenged."

The 2008-35 Ordinance states in section 2(a): On or before Aug. 30, 2009 the city shall review the rates set forth to ensure that such rates together with the rates set forth adopted Oct. 27, 2008 will produce revenue sufficient to pay debt service on outstanding bonds secured by water and sewer revenues, provide an adequate depreciation fund, pay the costs of operating and maintaining the system, and meet any required bond covenants for the next ensuing fiscal year.

Sec. 2(b): On or before Aug. 30, 2010, the city shall review the rates set forth for the same reasons stated in (a).

Sec. 2(c): On or before June 30, 2011 and on or before June 30 of each third year thereafter, the City shall engage a duly qualified consulting engineer not in the regular employ of the city "an engineer" to review the then current water and sewer rates and make recommendations as to whether any rate increase are necessary to produce revenues sufficient to pay debt service on outstanding system bonds, provide an adequate depreciation fund, pay the costs of operating and maintaining the system and meet any required bond covenants for the next ensuing fiscal year.

Sec. 2(d): Beginning in 2012, the city on or before August 30 of each year that an engineer is not engaged pursuant to subsection (c) above, shall review the then current water and sewer rates to determine whether any rate increases are necessary to produce revenues sufficient to pay debt service on outstanding system bonds, provide an adequate depreciation fund, pay the costs of operating and maintaining the system and meet any required bond covenants for the next ensuing fiscal year.

The 2008-36 Ordinance is basically stated the same.

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