Maumelle rate rise illegal, suit says

A Maumelle resident filed a lawsuit in Pulaski County Circuit Court Thursday contending that the Maumelle City Council's approval of a water and sewer rate increase last month was illegal because aldermen failed to properly set public hearings on the proposal.

The lawsuit by Michael J. O'Leary, filed by the Ritter Law firm of Maumelle, names the City of Maumelle, the City Council, Mayor Mike Watson, City Attorney Caleb Norris, Maumelle Water Management and "John and Jane Does, 1 through 10" as defendants.

The lawsuit asks that the court bar implementation of the approved rate increases scheduled to be effective Sept. 1, and attorney and filings fees.

The Maumelle City Council voted 6-2 on July 20 to approve a 9 percent increase in water and sewer rates, a 5 percent increase on a $7.86 debt service fee and a 15 percent increase for sprinkler meter rates.

The lawsuit alleges that the City Council violated Maumelle City Ordinance 271 by not properly setting a public hearing on the rate increase and, as a result, lacked authority to vote on the increases.

Maumelle Water Management's Board of Commissioners proposed in June a 40 percent rate increase over three years that was sent to the City Council. Shortly after that request, commissioners altered the proposal to a 9 percent increase over one year because Central Arkansas Water, based in Little Rock, began a study on whether to consolidate with the Maumelle water utility. The results of that study are due next month.

The City Council held a public hearing after its regular council meeting July 6 that was to be for the initial rate increase proposal. Because the rate proposal changed before that date, the lawsuit charges that a second public hearing should have been required and notes that the city attorney consulted individually with a majority of aldermen about scheduling another public hearing. A public hearing was held during a "special meeting" as part of the City Council's July 20 regular meeting prior to the council's vote.

The suit alleges that the City Council never voted to schedule either public hearing, as it says is required under Ordinance 271, making the Council's vote illegal.

Metro on 08/14/2015

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