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Wednesday, October 27, 2010

Another city added in Missouri Supreme Court case involving city of Hermann

Springfield City Utilities has been included in a Missouri Supreme Court case that may clarify whether excess municipal utility charges can be used by other city departments.

The case before the Supreme Court involves the city of Hermann, which a local business alleged raised utility rates more than needed and used the excess cash to bolster the city’s general fund.
The business lost the case, but the court’s decision was reversed on appeal and is now before the Supreme Court.

Attorney General Chris Koster filed the “friend of the court” brief today.
It includes utility information from several city audits that State Auditor Susan Montee has done in recent years - including a 2007 audit of City Utilities in Springfield.

Montee and Koster believed the practice violates the state’s Hancock Amendment, which requires a public vote before taxes can be increased.

According to Koster and Montee, the cities of Marcelene, Salem, Farmington, Lebanon and LaPlata also overcharged ratepayers.. Click Here for more info.
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