There may still be time to claim your share of $7 million in uncashed fire fee refunds

More than 18,000 Ocala utility customers are in danger of forfeiting a total of nearly $7 million in refunds of a fire service fee that was illegally assessed more than a decade ago.

The refund checks are pursuant to a May 16, 2022 court order by Marion County Circuit Judge Robert W. Hodges in a case that has dragged on for 10 years, including at least four appeals. As reported in October, thousands of account holders still not cashed their refund checks, among them several major corporations, public officials and government entities including the Marion County Sheriff’s Office and the Ocala Housing Authority.

Recipients were to cash their checks within 180 days, but thousands failed to do so. Derek Schroth, the attorney for the customers who made up the class action suit that led to the fees being refunded, has asked a judge to extend the claims period upon learning of “irregularities and delays” in the refund process.

Schroth argues in his motion that under Florida Statute 717.105, the class members to whom the city says it sent checks, but the account holder did not cash them within 180 days, should be granted the right to collect their money for up to five years.

In October, the city told the “Gazette” that the uncashed checks were void since they were not cashed within 180 days. However, City Attorney William Sexton said the city would “continue to reissue checks when we are presented with verification that an eligible recipient has been issued a check, but that check is no longer valid due to the expiration of the 180 days.”

The problem is customers won’t get an additional notification that they have a refund they need to request reissuance of. To help the public realize the unclaimed funds opportunity, the “Gazette” is publishing a list of names and amounts of refunds above $100 that the city says they mailed checks to but were not deposited.

To make things more complicated, the second refund checks that were issued only went to people who deposited the first one. The amounts of the first and second refund checks should equal 100% fire fees paid on each account.

“The city of Ocala remains committed to ensuring that the refund process is completed as efficiently and effectively as possible; entirely within the parameters agreed upon by the parties to the litigation and in accordance with the orders issued by the Court,” wrote Sexton by email.

The case stems from a long-running class-action suit filed in 2014 over fees that more than 89,000 Ocala residents and businesses paid for fire services as an add-on to their utility bills. The city’s attorney claimed the Ocala City Council implemented the fee in 2006 to spread the cost of fire services across a broader group of citizens, including those who did not pay for fire services because they didn’t own real estate or were tax-exempt.

An appellate court found the fees constituted an illegal tax. Last October, Hodges ordered the city to establish a common fund to refund the fees. The city took out a $60 million dollar loan from Truist to pay the court’s judgment.

In the May 16 order, which can be read in its entirety here, Hodges determined all utility customers due a refund should receive up to 91% of the money they paid. The refund would come within 60 days by check mailed to the same address they received their notice of final hearing.

Account holders on this list should contact the city’s customer service department: firefeerefund@ocalafl.gov or by phone to: (352) 629-CITY (2489) to request their refund checks be reissued.