Sewer District Faces Cash Flow Crisis Amid Late Fee Debate

During a recent government meeting, officials discussed significant updates regarding the sewer billing structure in response to cash flow challenges faced by Sewer District 1. The district has been struggling due to late payments from several large industrial users, which has hindered its ability to meet financial obligations, including a notable 12% late fee charged by Queensbury Water for overdue payments.

To address these issues, officials proposed increasing the late fee for Sewer District 1 and Sewer District 2 from the current 5% to 12%. This change aims to align the district's late fee structure with the higher penalties imposed by external water providers, thereby improving cash flow and ensuring timely payments. The proposal is expected to be introduced as part of a local law change, potentially coinciding with the sewer rate adjustments planned for 2025.

Concerns were raised during the meeting regarding the impact of the increased late fee on local businesses, with some officials questioning whether the hike might exacerbate financial difficulties for those already struggling. Discussions highlighted the need for a careful evaluation of the reasons behind the late payments, suggesting that some businesses may be prioritizing other financial obligations over their sewer bills.

The committee ultimately agreed to consider the proposal further, weighing the urgency of the cash flow issues against the potential burden on local businesses. The decision to implement the new late fee structure will be revisited as part of the broader budget discussions later this year.