The city of Des Moines will not get its day before the U.S. Supreme Court on a state-court-ordered refund of an estimated $40 million in franchise fees that residents paid for nearly five years.

This is the ninth time a court has ruled against the city after resident Lisa Kragnes discovered in 2004 that she was paying what has been called an illegal tax for utility service.

“It is time to stop delaying the inevitable and start returning the money illegally collected from Des Moines citizens and businesses,” said Brad Schroeder, co-class counsel.  Des Moines initially charged a 1 percent franchise fee that was supposed to cover its costs of regulating gas and electric utilities. The city ultimately raised the fee to 5 percent and used the funds for a variety of purposes to offset a budget shortfall.

In its appeal to the U.S. Supreme Court, the city essentially argued that each resident affected by the state ruling should file a lawsuit to seek a refund. Later this week, the class will file a motion in Polk County District Court to lift the temporary stay granted while the city petitioned the U.S. Supreme Court.