Two-Year Permit Fee Overcharge Estimate Tops $1 Million - Motion Filed for Summary Disposition PDF Print E-mail
Discovery and depositions taken in the permit fee overcharge lawsuit filed by the MAHB, ABC/Michigan and the Michigan Plumbing and Mechanical Contractors Association have identified a “surplus” of $414,648.12 in fee overcharges in 2010-2011. This “surplus” was deposited into Troy’s general fund where it was used to pay for the operation of other city departments in violation of state law.  The city’s “surplus” for 2011-2012 is estimated at $596,000 to $638,000 in 2011-2012 bringing the total amount of building permit fee overcharges by Troy in a two-year period to over one million dollars.
 
In a motion for summary disposition filed Friday, October 7, 2011 with the Oakland Circuit Court the three construction trade associations asked Judge Shalina Kumar to order the city to establish a segregated fund to account for all building department income and expenses; deposit the surplus into this fund as well as all other revenue from the building department; use these funds only for the operation of the building department and reduce building department permit fees to assure future surpluses are no higher than 10% of the cost of running the department.
 
The city of Troy has 21 days to respond to the motion.