Thousands of Kernersville Residents to Receive Refunds Today After Court Rules in $12.3 Million Sewer Rate Overcharge Lawsuit Spanning 2012–2016
Kernersville, N.C. — April 29, 2025* — After years of legal battles and community frustration, thousands of Kernersville residents will begin receiving financial refunds today as part of a $12.3 million court settlement stemming from overcharged sewer rates between 2012 and 2016.
The landmark case, originally filed in 2017, alleged that Kernersville officials and the Winston-Salem/Forsyth County Utilities Commission failed to implement a 2011 agreement that mandated rate reductions for local sewer services. Instead, residents were billed at inflated rates for more than four years, resulting in millions of dollars in excess charges.
The class-action lawsuit, which represented more than 10,500 affected households and businesses, concluded in late 2024 when a Forsyth County judge approved a negotiated settlement. Starting today, payments from that settlement are being issued via direct deposit and paper checks, offering long-awaited compensation to impacted ratepayers.
The refund amounts vary, depending on water usage and sewer billing during the affected years. Most households are expected to receive between $350 and $1,100. Local businesses, which typically consumed more water, may see even higher reimbursement amounts.
“This is a huge moment for the people of Kernersville,” said attorney Lauren Mitchell, part of the legal team representing residents. “They stood together, demanded accountability, and ultimately won. This case proves that citizens can make change when they hold government and public utilities responsible.
Residents like Thomas Everett, who has lived in Kernersville for over 20 years, say the payout is welcome—but overdue. “We knew something was off with those rates,” he said. “We kept asking questions and got nowhere for years. Now, finally, we’re being heard.
The case drew considerable attention because it exposed gaps in oversight and communication between the town government and the utilities commission. The 2011 agreement—meant to align Kernersville’s sewer rates more closely with those of neighboring municipalities—was not enforced or communicated to the public properly, plaintiffs argued.
In response to the settlement, Kernersville town officials have maintained that the overcharges were unintentional. Town Manager Curtis Swisher issued a public statement acknowledging the court’s decision and emphasizing a renewed commitment to transparency.
“We respect the outcome of this case and remain committed to improving our processes to ensure fair billing for all residents,” Swisher said. “Our staff has worked hard in recent months to enhance oversight, improve communication with the utilities commission, and prevent future discrepancies.
The Winston-Salem/Forsyth County Utilities Commission also responded, stating that it has implemented new auditing procedures and billing safeguards to ensure accurate application of rate agreements moving forward.
Experts in municipal law view the case as a precedent for other communities. “This lawsuit underscores how important it is for public entities to follow through on contractual obligations, especially when those obligations directly affect citizens’ finances,” said Professor Dana Caldwell of Wake Forest University’s School of Law.
In addition to direct compensation, the settlement includes provisions requiring the town and utilities commission to conduct annual public audits of utility billing practices for the next five years. Town officials have also pledged to hold public forums to address concerns and explain changes to rate structures.
As residents begin receiving their checks, there’s a renewed sense of empowerment in the community. “This was about more than just money,” said Kernersville resident Maya Johnson. “It’s about trust. And I hope this shows the town that we’re paying attention.”
While the resolution brings closure to a long-running issue, many hope it will also mark the beginning of a new era of civic engagement and oversight in Kernersville.
Refund processing will continue through mid-May, and residents with questions are encouraged to contact the town’s refund assistance hotline or visit the official website for more information.
