The City of Winnipeg suing Manitoba Hydro, claiming the utility owes it millions of dollars of unpaid taxes.
In court documents filed on Feb. 25, the city claims Hydro failed to pay money it was supposed to be collecting from ratepayers' hydro bills between 1999 and 2009.
The city is asking the court to confirm the debt and order Hydro to pay up.
It's a relatively high-stakes battle for the city. Its balanced budget, tabled last month, assumes it will receive $10.18 million as a result of winning its dispute with Hydro.
Recent reports indicated that finance officials from the two sides were talking about the back-tax issue, but the filing of the lawsuit indicates no agreement was made.
In the documents, the city argues that under sections of the City of Winnipeg Charter and other bylaws, Hydro has the responsibility and duty to collect a levy on behalf of the city from personal and commercial gas and electricity users.
Under the agreement, the city says, residential customers should be paying a 2.5 per cent levy on their monthly bill, and commercial customers five per cent.
But Hydro never collected the money, or collected it and didn't pass it on the city, the lawsuit alleges.
"[Hydro] knew or ought to have known that the city was relying on them to collect and remit the taxes properly pursuant to the statutes," the city said in its statement of claim.
The allegations made in the lawsuit have not been proven and Manitoba Hydro has not yet filed a statement of defence.
Share Tools
Latest Manitoba News Headlines
- Prisoner dies at Stony Mountain
- A 56-year-old man who spent most of his adult life in prison, has died at the Stony Mountain Institution, corrections officials say. more »
- Winnipeg WWE wrestler Chris Jericho suspended after flag incident
- Winnipeg native Chris Jericho has been suspended by the WWE after he crumpled and kicked a Brazilian flag at the WWE's debut show in Brazil. more »
- Missing boater may have struck reef, police say
- A boater who has been missing since Tuesday may have struck a reef, police say, adding a search for the man is continuing. more »
- Crime spree ends with 46 break-in charges
- Police in Winnipeg think they have caught the person behind a string of early-morning break-ins, where a vehicle was used to smash into businesses. more »
Top News Headlines
- Everest team unable to bring down Toronto woman's body
- Bad weather has hampered the recovery team that is attempting to bring down the body of a Toronto woman who died trying to climb Mt. Everest. more »
- 32 Syrian children die in artillery attack, says UN
- More than 90 people have been killed by regime forces in a district of central Syria, with the head of the UN team in the country confirming at least 32 children and 60 adults were killed the attack. more »
- Woman's remains found in hockey bag on Cape Breton river
- Police in Nova Scotia are investigating after a woman's remains were found in a hockey bag floating on a Cape Breton river Friday night. more »
- Montreal student group says Bill 78 must be priority
- Quebec's coalition of student associations says Bill 78 must be a priority if a new round of negotiations start up with the government in the ongoing tuition conflict. more »
- Winnipeg WWE wrestler Chris Jericho suspended after flag incident
- Crime spree ends with 46 break-in charges
- Missing boater may have struck reef, police say
- Outhouse bear attack survivor was grabbed from 'throne'
- First-time homebuyers find frustration in Winnipeg
- Winnipeg's Union Station to get facelift
- RCMP to close labs in Halifax, Winnipeg, Regina
- Prisoner dies at Stony Mountain
- Kelvin High School celebrates 100 years
Teddy Bears' Picnic
