FLINT, MI — Millions of dollars in pending Flint water crisis settlement payments are about to be delivered, and Mayor Sheldon Neeley is asking a federal judge for additional resources, including the establishment of a local office to help residents with questions about their claims.
Neeley is expected to detail his request, including a plea for expedited payments, to U.S. District Court Judge Judith E. Levy in a City Hall news conference on Monday, Sept. 22.
“Too many of our residents are still waiting for answers. These dollars were meant to bring relief to Flint families, and every day of delay prolongs the pain of this manmade disaster,” Neeley said in a statement released by the city. “We need transparency, accountability, and action — now.”
Neeley’s pitch to Levy is the mayor’s latest attempt to speed up the release of funds from a settlement of nearly $700 million between those who claim they were damaged by Flint’s water, the state of Michigan, and other defendants in a 2016 lawsuit.
Earlier this month, Special Master Deborah Greenspan told Levy she expects more than 25,000 individual claimants with approved water crisis claims to receive payment letters between now and Dec. 21.
Payment letters will provide directions on how to turn approved claims into digital payments or paper checks.
The slow pace of distributing settlement funds has been a thorny issue for Neeley since Levy gave final approval to a $626-million settlement nearly four years ago.
Since that time, two additional engineering companies that advised the city during the water crisis also agreed to settle pending lawsuits against them for an additional $61 million, some of which will be included in the initial claims payments.
The city was a defendant in the settlement and its insurance company paid $20 million to the settlement fund, but Flint officials have no direct involvement in paying claims.
Neeley’s formal request urges Levy to approve additional resources to allow Greenspan to “improve communication and support for Flint residents navigating the settlement process,” including the hiring of a public relations firm to assure “real-time, accessible information for residents.”
The appeal comes five months after the mayor asked Greenspan to “act with the urgency and compassion that this situation demands” to expedite claims payments.
Three months before that, the Charles Stewart Mott Foundation also challenged the slow pace of the settlement process, saying residents “deserve so much more than they have been given.”
In addition to his appeal to Levy, Neeley plans to travel to Washington, D.C., next week to meet with federal officials “in hopes of accelerating the release of funds,” according to the city’s most recent announcement.
In addition to mayor’s efforts, the City Council has also invited Greenspan to a future meeting to answer questions related to the settlement.
The special master has described the claims process in the Flint settlement as daunting because of a multi-layered appeals process, because many of those applying for payments have lacked required information, and because some claims have amounted to attempted fraud.
As of Aug. 25, 25,759 individuals have had claims approved for payment, according to court filings, but officials have said no one will be paid until the claims process, including all appeals and reconsiderations of claims, has been completed.
Children who were 6 years old and younger during the water crisis are the biggest potential beneficiaries of the settlement, and 13,169 of their claims are among those that have been approved for payment, according to court records.
Nearly 80% of the settlement, which state officials have said is likely the largest in Michigan history, is to be paid to children who were younger than 18 when they were first exposed to Flint River water.
Payments to minors will be made to a trust or to a structured settlement provider.
Greenspan’s notice to the court earlier this month said eligible Flint claimants will receive instructions this fall on how to obtain their payment through the official Flint Water payment portal.