Residents Anticipate Refunds From Franchise Fee Settlement

Des Moines’ franchise fee debate is close to its conclusion after nearly a decade, but Des Moines residents are still waiting for refunds from the franchise fee settlement.

Get breaking news and weather alerts anywhere you go with the free KCCI 8 News App.

Those who paid a utility bill in the city between 2004 and 2009 may quality.

The company that will disburse the money advises recipients to be patient, even though notices on size of refunds went out seven months ago.

“Glad I don’t have to pay the franchise fee anymore,” said Lisa Kragnes, who sued the city of Des Moines over what was eventually ruled an illegal tax. She had high hopes the franchise fee would go away and utility customers would be reimbursed.

Neither has happened.

Customers are now paying more than ever after legislators ruled cities can collect franchise fees.

The utility tax will eventually be 5 percent, but since more money is needed by the city to pay off the $40 million borrowed after losing the class action judgement, Des Moines will collect 7.5 percent for the next several years.

“Well, I was wondering, ‘Where’s my refund?'” Eric Menz said.

The lawyer for the city of Des Moines said the city paid the entire judgement of $40.1 million over two years ago. That money is currently under the control of Rust Consulting, of Faribault, Minnesota, which is managing and disbursing the refunds.

Attorneys for the woman who started the class action suit on behalf of Des Moines customers took their fees through the appeals process, and all the way to the Supreme Court.

That took some time, but how much the lawyers are getting has been settled and still no checks have been sent.

“I’ve just about given up on even ever receiving it,” Menz said. “I figure it’ll be another year, 2 years, 3 years or probably when I’m dead.”

KCCI had that gentleman call the 800 number for the Des Moines franchise fee settlement. The man who answered the call said, “We are waiting for the court to issue an order for distribution, which will take place once they have completed the processing of all submitted claim forms.”

When asked when that will be, the representative said the process may take some time, and they have not been provided a time frame.

Source: www.kcci.com www.kcci.com

Be the first to comment on "Residents Anticipate Refunds From Franchise Fee Settlement"

Leave a comment

Your email address will not be published.


*