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Ordinance to standardize how partial payments are applied advances out of committee
Summary
Finance staff told the Wilmington City Council committee that a proposed administrative ordinance would standardize how partial payments are applied across utility, property tax and licensing accounts, directing payments to principal on the oldest bill with a limited exception for 30-day instant tickets.
The Wilmington City Council committee voted to move ordinance 25-022 out of committee after the director of finance presented an administrative cleanup measure to standardize how partial payments are applied across multiple billing areas.
Brett Taylor, director of finance, said the ordinance will make the application of partial payments consistent across utilities, property taxes, and licenses and inspection fees. Under the proposal, when a customer makes a payment and has delinquencies, the payment will apply first to principal on the oldest bill. Taylor described an exception for instant tickets related to licenses and inspections, saying those tickets will remain payable for 30 days and customers who pay within that window may have the payment applied to the instant ticket instead of older delinquencies.
Taylor said the change aims to reduce the city’s rising delinquencies and help residents avoid escalating interest by ensuring payments reduce principal balances. He also said the city will include the policy on bills and run a communications campaign tied to the new billing system.
Council member McCoy asked whether residents could correct misapplied payments at the point of payment; Taylor said reconciliation can be difficult once payments are applied to penalties and interest, and that operational consistency should reduce such errors. After discussion, the committee moved ordinance 25-022 out of committee by voice vote; the ordinance is scheduled for committee consideration on Thursday, June 5.
The committee did not amend the ordinance during the meeting. No public speakers addressed the item during the committee session.
