Elkins will pay $250,000 dollars to settle a class-action lawsuit alleging the city improperly raised water rates.

The city agreed to pay $250,000 in refunds to water and sewer customers, as well as reduce water and sewer rates by 5 percent for six months.

Of that, $200,000 will go to Dale Evans and Kent Hirsch, the attorneys for the class.

The lawsuit, settled Wednesday, alleged the city had failed to provide proper notice to the public regarding sales tax, property tax, water rate and bond information before issuing bonds for water and sewer improvement in 2008 and 2012.

Anyone who paid water and sewer rates between December 2007 and November 2012 is eligible.

No refunds for sales tax or property tax were included in the settlement.

The city admitted no wrongdoing in the settlement. Simmons First Trust Company, included in the suit as the agent that issued the city bonds, was also released from liability.

Tom Kieklak, city attorney, and Mayor Bruce Ledford signed the settlement for the city, although the bonds were issued before Ledford was elected.

Two Elkins couples filed the suit, which was certified to include all Elkins taxpayers or water users. Those couples, Geary and Launa Lowery and Shannan and Gloria Freeman, will each receive $2,500 as class representatives. Another $5,000 will repay the Lowerys for expenses they incurred filing the lawsuit before it was certified as a class-action suit.

Any objections to the settlement must be filed in Washington County Circuit Court by Nov. 29.

The bonds were issued to improve and repair water and sewer lines within the city. Leaks in the old lines and other infrastructure problems had caused tensions between Elkins and Fayetteville. Fayetteville supplies water to Elkins, and takes in Elkins sewage for treatment.