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Newark council releases two water/sewer liens filed after property sales; city absorbs small payments
Summary
The Newark City Council voted to release two water and sewer liens filed after the properties had transferred, directing the director of public service to remove the liens from county records.
The Newark City Council voted to direct the director of public service to release two previously placed water and sewer liens because the liens were filed after the properties had transferred ownership.
City staff said the first parcel, 125 West Caddell Street (parcel number 054-211-464-00.000), carried a lien for $550.31; the second, 553/555 West Green Street (parcel number 054-227640-00.00), carried a lien for $612.74. Staff said both liens were discovered after the properties had already been sold or transferred, so the city cannot legally collect those charges from the new owners. Staff said the city will have to absorb those payments.
Staff described the issue as a timing problem: the unpaid water and sewer charges dated from bills in July, August and September, but the city filed liens in December after the properties had already moved through foreclosure or sheriff sale. The city intends to meet with the county auditor and treasurer's offices to review timing and processes to reduce the chance of similar errors in future lien filings.
Council members discussed practical consequences. One council member asked whether the former owners could be assessed; staff replied the city could not assess the payments against the new owners because the properties had already transferred at the time the city filed the liens. Staff also noted the city can withhold future water service for unpaid accounts in some circumstances.
Council member Neely moved the first lien release; the motion was seconded (second not recorded in the transcript) and passed 5-0. The second lien release was moved by Council member Bealey and seconded by Council member Blind; it also passed 5-0. Council members described the matter as a timing and administrative issue the city will try to fix with the county offices.
The council recorded the actions as emergency resolutions directing the director of public service to release the liens so title work and closings can proceed without the liens appearing on the properties.
