City Attorney Joe Estes told the Nogales City Council that the municipality has legal tools to try to recover large overdue sewer accounts but that each option has limits and practical tradeoffs.

Estes said the transcripted list provided to council showed about 88 delinquent accounts with a combined balance roughly in the low hundreds of thousands of dollars (staff reported the list total as approximately $360,004.06). He explained that Arizona statute permits municipalities to place liens for sewage charges in appropriate circumstances but that liens are junior to county tax liens and can be wiped out by a tax‑lien foreclosure if the city does not protect its interest.

The council discussed several options: (1) establish a policy to file liens on owner‑occupied properties that exceed a council‑set threshold; (2) pursue arrangements with the local water provider to suspend water service for properties with delinquent sewer accounts (staff said this requires coordination and that some cities arrange with private water companies to synchronize shutoffs); and (3) in targeted cases, monitor county tax‑lien sales and, where warranted, purchase a tax lien to protect the municipality's larger sewer lien.

Estes cautioned that liens and tax‑lien purchases require administrative work and potential legal follow‑up; he recommended prioritizing accounts with large balances and owner‑occupied status. Staff agreed to provide a follow‑up report with a breakdown of the delinquent accounts (water vs. sewer, owner‑occupied vs. rental), an estimated cost for lien recording and monitoring, and any existing arrangements with the local water company.

Council direction: Staff was asked to continue research and return with options, cost estimates and a recommended threshold for placing liens or using other enforcement tools. Council members proposed considering payment plans and other relief for customers whose delinquencies arose from emergencies, but asked staff to present a formal policy proposal rather than ad hoc decisions.

A single account figure cited in discussion was $27,334.89; council members suggested that very large balances be prioritized for lien action or tax‑lien monitoring.