A clear explanation of the case is in order to provide the media outlets with an understanding of some of the issues at play in this case.
In effect, the very character and nature of the refuse fee amounts to a property tax. Furthermore, the refuse fee was created by administrative fiat. And, at no point was it approved by City Council or the voters of the City of Toledo. Viewed broadly, the purpose of this case is to establish that the City of Toledo has taxed the property owners outside of its own limitations. Moreover, the City of Toledo has taxed the property owners outside of the limitations set forth in Ohio’s Constitution and the statutes of the State of Ohio. To that end, this case will affect the rights of all current and future property owners in the City of Toledo.
Ironically, the City calls it a “refuse fee,” when in fact it has little-to-nothing to do with refuse. Sections 208-210 of Appendix B of the Rules and Regulations issued by the Director of Public Services {emphasis added}, states that every property owner shall pay $5.50 per Month per Unit. The City uses the water bill as a vehicle to collect this fee. Furthermore, this fee is set without regard to occupancy or to refuse created or to refuse collected or to any other issue related to refuse. The fee is simply based on the number of units. So for example, if a property owner has a triplex or a duplex and is unable to rent these spaces, she still must pay the extra per-unit cost even though no refuse is generated by those units.
Importantly, this $5.50 fee is arbitrary, and if it is unchallenged it may be increased by the Director of Public Services at any time to any amount for any reason. Beyond this, the money taken from the property owners under this fee is not applied directly to refuse related services, rather it is deposited into the City’s General Fund and spent at the will of the Mayor with limited restrictions.
Notably, if the refuse fee is not paid-in-full every month, the City of Toledo under the rule will penalize the property owners in 6 different ways as outlined in the Rules and Regulation cited above.
- The City will levy an overdue fee,
- The City will cut-off water service,
- The City will turn the property owner over to a collections agent,
- The City will transfer the debt to another property,
- The City will sue the property owner, and
- The City will place the amount owed on the Property Tax Bill
As we have seen and heard, there seems to be some confusion about the genesis and promulgation of the refuse fee and the related law suit. To help explain these issues, Kurt J. Wicklund, partner at Ciolek & Wicklund, will be appearing on the Brian Wilson Show on WSPD 1370 AM at 5 pm Tomorrow, Tuesday, March 18, 2008.
