2. Recommended Changes - Water & Sewer Billing Late FeesPost Office Box 1997, Kalispell, Montana 59903-199 7 -Telephone (406)758.7720, Fax (406)758278 31.
MEMORANDUM
17 September 2003
To: Mayor Kennedy, City Council, and Chris A. Kukulski, City Manage
From: lames C. Hansz, P.E., Director of Public Works/City
Amy Robertson, Finance Director
Subject: Work Session, Water/Sewer Billing Late Fees -- Recommended Changes
At the present time the City has a very "user friendly" policy regarding late payment of
water and sewer bills. Essentially, the City requests payment and as time passes and the bill
increases due to continued usage the City repeats its requests for immediate payment in full.
Eventually the customer runs up a late account that requires a site visit to hang a final notice with
a date service will be shut-off. The delinquent customer waits until the last possible minute and
then pays the charge most in arrears and the cycle starts again. The current system does not
provide for late fees or shut-off notice fees; it basically has in it no incentives for the customer to
keep the account current. We believe it is too "user friendly" and not in the City's best interest to
leave unchanged.
Staff would like to discuss the current late account practices of ether Cities and obtain
guidance from City Council on the preferred approach to dealing with this issue. We also have
requested the advice of our rate study consultant and hope to have a reasonable sampling of
alternatives to support this discussion.
memao582003.doc
LATE FEE POLICIES
City of Whitefish
Bill monthly
Bills due within 30 days.
$5.00 late fee added on 31" day. Letter goes to customer stating that another $25.00 fee
will be added to bill if not paid in 10 days and the water is shut-off on the I Ith day.
If the water is shut-off due to non payment a reconnect fee is not required as long as they
have paid the $5.00 and $25.00 late fees.
When a customer moves out the water is automatically shut-off and no new application
for service is approved if there is an outstanding bill due for the location requesting
service.
City of Columbia Falls Nancy 892-4391
Bill monthly
In process of implementing these new late fees.
30 days to pay bill —
$5.00 late fee added on the 3 1 " day.
Notice is sent w/next bill stating that the water will be shut-off if payment is not received
by the end of the second month and a $25.00 late fee is also added to the bill.
Homes are tagged one day prior to shut-off
$50.00 reconnect fee.
Mountain Water (Missoula) John 523-5069
Bill Monthly
No late fees charged.
After 30 days late a letter is sent stating water will be shut-off in 10 days.
$70.34 reconnect fee
Hungry Horse Water District Rita Graham 250-3822
Bill Monthly
Bill on the 1' day of the month, bills due on the 15t' of the month.
$3.50 late fee added to bill after the 15''
Tagged for shut-off on the 16'h of the month, shut-off after 1 week
$10.00 disconnect fee & $10.00 reconnect fee