One Lubbock businessman who claims the City of Lubbock illegally collected storm water fees from Lubbock residents will have to wait a little longer for a decision. A judge heard his case and the city’s response at a summary judgment hearing Thursday. 

It’s been over two years since John Beck first began asking questions about the city’s storm water fees. He said he began looking into the state law, then took legal action. 
 
“It had to be challenged. If I hadn’t a done it, somebody else would have done it eventually,” Beck said.

Thursday, a judge finally heard the case at the Lubbock County Courthouse. 

His attorneys argued under a Texas statute governing utilities, the Municipal Drainage Utilities Act, the city used the revenue from these storm water fees improperly, to pay off general obligation debt and by collecting unauthorized franchise fees and payment in lieu of taxes (PILOT). They argued the amount being collected exceeded the definition of “cost of service” in that statute. 

But the city argued their collection, and use, of the money was completely legal, because of our status as a Home-Rule municipality. They said they can charge “other drainage charges authorized by law.” 

“So neither side is really arguing about those facts,” Beck’s attorney Terry Salazar said. “It’s really, how do those facts play out under the existing statues. In other words, ‘Is the city complying with the Act, through the use of the monies.’”

The City also mentioned that the Attorney General approved the way the funds were used, even saying, “Home-Rule municipalities can govern themselves, and do whatever they want.” So they are preempted from the portion of the act Beck’s case refers to. The City added that even if that wasn’t the case, it could be argued that the payment of general obligation debt was authorized, because it was street maintenance projects. They explained that streets and storm water drainage are connected, because of the city’s set up.
    
Near the end of the hearing, the city added that if the City had to pay Lubbock residents back, they may have to raise taxes.
        
Beck said he hopes the City is stopped from collecting the contested fees, and that 
Ratepayers are refunded those fees, going back to September of 2013. 

“It’s important because everyone who receives a utility bill and is being charged for drainage service needs to know if the charge they are paying is fair and reasonable, or if they are being overcharged. And if they are being overcharged, they need some mechanism to address that problem,” Salazar said. 

The City released this statement today notifying the public about the hearing: 
“Today, the City of Lubbock presented its position in the Beck Steel litigation. The city appreciates the court for hearing this complex case and looks forward to a decision on this important matter which has been pending for two years.” 

In that hearing today, lawyers on both sides thanked the opposing counsel for their hard work on the case, saying that they “saved all of us a lot of money” and it’s “unnecessary for us to get in a fight, when the facts are there.” 

Salazar told EverythingLubbock.com they expect a ruling to come around the first of the new year.