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Communities Take Fight For LGC Payout To Court

Ten communities have filed a lawsuit to stop the LGC from issuing refunds.  Under a hearing officer’s order, by September 1st, the Local Government Center has to return tens of millions of dollars to communities that for years paid inflated insurance premiums.  

The lawsuit is all about timing.  Last summer, a hearing officer ordered the LGC to return$36 million in illegal surplus to members. Those refunds would be issued to communities who were members as of the date the order came down.  A number of towns and cities had paid into the pot over ten years…but dropped LGC insurance before the order was issued. 

The LGC says under the order, it’s legally bound not to include these communities in the payout.  The group includes: Salem, Peterborough, Meredith, Concord and Durham, among others. 

In a written statement, Durham Town Administrator Todd Selig said, “Some members will receive an arbitrarily larger share than their contribution, and some an arbitrarily smaller share.  This situation is inherently inequitable.” 

If the money is distributed next month, Selig has previously said “the game is over” for his town to recover taxpayers’ money.  This group of towns and cities filed suit in Strafford County Superior Court.  It’s also filed a petition for relief with the Secretary of State’s office, which regulates the LGC.  

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