Trial date set in Leesburg water-rate lawsuit
By Holly Hobbs
A motion to end the court proceedings between the Town of Leesburg and neighboring residents, who receive town utility services at twice the rate paid by in-town residents, was rejected by Loudoun County Circuit Court Judge Thomas D. Horne at a hearing July 9.
Horne set a trial date to argue the out-of-towners' case Dec. 22 and 23.
Seven individual homeowners and three homeowners associations from outside of Leesburg brought a civil-action suit against the town in October 2006, after Leesburg Town Council approved rate increases in December 2005.
Those out-of town residents said the rate imposed on them was unreasonable, unfair and inequitable, meaning the town could not justify the increase.
During the July 9 hearing, Town Attorney Monica Monday argued that even if the complaints by out-of-town residents receiving the town's utility services were true, there were no legal grounds for the suit.
She said the rate increase was due to a General Obligation Bond taken out by the town to pay for improvements to its utility infrastructure. Unlike out-of-town residents, Monday said, Leesburg and its residents share the risk of paying for the loan should it default.
“The increase in the rates is very much tied to the need for the bonds, which is tied to capital improvements, which benefits everyone,” she said, adding that in this way the rate structure is fair.
The out-of-towners' attorney, Michael Quinan, said the question wasn't over the validity of the rate structure but of the scale of the rate difference.
“There is no analysis at all that supports the differential of the 100 percent surcharge,” he said. “It violates the two [legal] standards under which we're suing – fair and reasonable.”
He added that the town's bond argument was made in hindsight and that the bond was not taken into account when the town council voted to approve the new rates.
Despite the rejection of its motion, Leesburg Mayor Kristen Umstattd – who attended the hearing – said the town would have another chance to argue its case in December.
Out-of-town residents Ray and Vivian Baldwin, who live in the Lakes at Red Rock housing development, said they were happy with Judge Horne's decision and looking forward to the trial.
Ray said in the eight years his family has lived in the community, his utility bill has escalated from about $60 to more than $350 for three months service.
He said $350 is a lot of pay for a household of three.
Vivian said the increased cost of using town water has meant a change in lifestyle for her household.
“We don't water the lawn; we don't wash our cars,” she said.
Families like the Baldwins represent one-fourth of the 15,000 users who receive Leesburg utility services, according to the town.
Out-of-town residents and Leesburg representatives in the suit agreed that the legal battle over the town's water rates has been a lengthy one.
The case, which was filed in October 2006, faced the Loudoun County Courts in April 2007.
Although the county courts ruled then that the case could go to trial, the town appealed the decision to the Virginia Supreme Court.
On June 6, the Virginia Supreme Court ruled in favor of sending the lawsuit fighting the town's rates back to Loudoun County Courts for trial.
Before the trial out-of-town and Leesburg attorneys will meet again Dec. 4 in court to hear another motion to dismiss the lawsuit.
Contact the reporter at hhobbs@timespapers.com