Thousands of Wichita homeowners, mainly those who bought new homes built between 2002 and 2011, could be paying more in special assessments than they should, according to a Wichita lawyer suing the city on behalf of a local couple.
The attorney, Austin Parker, contends the city of Wichita is deliberately collecting more money from property owners who pay special than it needs to pay off bonds that funded streets, sewers and other infrastructure improvements in what could be dozens of developments across town.
The issue, Parker says, stems from the city’s practice of refinancing more than $220 million in general obligation bonds, including some that funded the improvements, to lower interest rates and cut payback costs. “Kansas statutes specifically provide for municipalities to refinance bonds but DO NOT require redistributing to property owners the money saved through refinancing,” a motion to dismiss filed Aug. 24 by Gilmore and Bell, the city’s bond counsel, says. “There is simply no legal duty to do what plaintiffs (the Snodgrasses) assert should have been done.”
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