Toledo to resume water shutoffs June 23; city outlines payment plans, outreach and thresholds

Director Doug Stevens, director of the City of Toledo Department of Public Utilities (DPU), told the Water Quality Committee on June 17 that the city will resume its water disconnection process beginning June 23 with mailed notifications and billing notices, followed by scheduled shutoffs for accounts that do not pay in full or enroll in a payment plan.

The move marks a return to active collections after a COVID-era moratorium and several years of work on the city’s advanced metering infrastructure (AMI). “We have not shut off for, at this point, a period of 5 years,” Stevens said, adding that the department paused disconnects during the AMI rollout and while the council-maintained moratorium was in effect.

City officials said the disconnection procedure will follow a stepped “dunning” schedule: billing reminders and late fees at lower thresholds, a formal disconnection letter for accounts that exceed the dunning threshold, a 10-day window after that letter, and then a scheduled shutoff with a 5-day door hanger placed at the property before crews return to disconnect service. Stevens said the department has not fixed the exact dollar threshold that will trigger that disconnection letter but offered an illustrative example of $1,000 and said the threshold will be adjusted over time as customers enroll in plans or are disconnected.

Why it matters: Toledo’s utilities carry large receivables and officials said it will take years to realize collections fully even after reconnecting customers. Stevens told the committee the water accounts receivable on the city’s monthly financial report showed roughly $23,000,000 in billed water receivables; under the city’s collectible-debt assumptions the department expects to realize roughly 65% of that (about $15,100,000). Similar calculations for sewer receivables reduce long-term collectible expectations; Stevens said collection of large balances often plays out over three to four years.

Payment-plan terms and reconnection rules

Stevens and other staff outlined the planned installment agreements and reconnection rules the city will use. For residential customers DPU proposes a minimum down payment equal to 5% of the arrearage or $50, whichever is greater, with a maximum repayment term of 18 months. Stevens described the selection of 5% as intended to keep monthly payments affordable over an 18-month term.

If a customer has been disconnected, Stevens said DPU will require verification of the down payment and any required reconnection fees before service is restored; staff estimate reconnections will usually occur within 24 to 48 hours after payment verification but warned same-day reconnections cannot be guaranteed in every case. A reconnection deposit the department collects after a disconnection was cited as $75.

For large commercial accounts and apartment complexes, Stevens said DPU will ask for a larger commitment: a 25% down payment and an expectation to repay over 12 months.

Stevens said the department will allow some flexibility in the call center for alternative arrangements but cautioned that missed payments on an installment plan can lead to disconnects if accounts exceed the active dunning thresholds.

Scope of customers affected and timeline for recovery

Stevens gave committee members a range of counts tied to different delinquency thresholds. He said a prior analysis found roughly 11,200 to 11,300 residential customers owed $75 or more (about 30 or more days late). If the threshold moves to customers owing $250 and 60 days late, that cohort dropped to about 3,600 accounts. Stevens emphasized that larger balances and older debts become progressively harder to collect.

He said even with an intensive collections effort — including turning off service for nonpayers and getting customers onto plans — it will likely take well over a year to materially reduce the citywide arrears and three to four years to see much of the revenue projected under collectible-debt assumptions.

Accounts receivable and other collection tools

Stevens pointed committee members to the citywide debt policy that guides collectible-debt assumptions and timing. He confirmed the city currently carries tens of millions in utility receivables: committee discussion referenced roughly $23,000,000 in water receivables and a council member later noted a broader figure of about $54,000,000 in outstanding utility-related debt across accounts.

Council members asked about additional collection tools. Committee members discussed liens on property and coordination with the county auditor’s office; one member told the committee she had already discussed lien procedures with the county auditor and agreed to forward details to DPU. Stevens said liens and legal remedies are part of DPU’s toolbox to use after other collection steps have failed.

Low-income assistance, verification and outreach

Committee members and staff discussed efforts to notify eligible residents about low-income and senior discounts.

Councilwoman Gattis asked that staff provide counts by ZIP code for residents who would be impacted at the thresholds under consideration and asked, “Will the low income ... program also be put on those letters that are going out to our residents?” Stevens said staff already planned to include senior-discount messaging in bill notes and that they could add instructions about low-income programs on the notices.

Commissioner Cindy Geronimo told the committee DPU is using a Neighborly portal to vet applicants for the low-income discount and that applicants will have to provide income documentation; the city’s current eligibility threshold for that discount was described as 200% of the federal poverty level. Geronimo said the city has been doing outreach through senior events, libraries and community centers and that printed inserts and bilingual materials are available or will be made available. She confirmed after-hours callers to Engage Toledo will be trained to enroll customers in installment plans.

Stevens and staff noted low participation in the existing low-income program: the committee cited 409 enrolled residents versus an estimated roughly 60,000 eligible residents; staff said they will emphasize outreach and inserts on mailed bills in addition to online messaging.

Customer tools, vendors and fees

DPU listed three ways customers can enter an installment plan: call DPU’s customer service line at 245-1800, visit toledo.promisepay.com, or call Promise at (419) 314-3402. Staff said the city contracts with a third-party payment vendor that charges $2.25 for card payments (previously $3.95 before negotiation) and that ACH/check options or kiosks remain fee-free. Two kiosks were named: one in the Ohio building lobby and a second at Scott Park (inside the lobby). Staff said the vendor fee arrangement was negotiable in future procurements.

AMI meters and operational overlap

Stevens said the AMI rollout and noncompliance issues around AMI meters remain largely separate from the collections restart, though some overlaps are expected. He estimated about 5,800 AMI meters remain outstanding and said the department will address overlaps case by case.

Leases, apartment buildings and landlord responsibility

Staff told committee members that landlords remain ultimately responsible for utility bills when tenants do not pay. Stevens said situations with large apartment complexes could become legal cases and that residents can pursue an escrow mechanism among themselves, but the city cannot create escrow accounts on residents’ behalf.

Committee direction and next steps

Council members requested a referral to provide more granular ZIP-code impact counts and asked staff to ensure low-income program information appears on mailed notices. Stevens said DPU will coordinate with the communications team on a citywide message and has trained call agents to help enroll customers in installment plans. Stevens repeated that notifications will begin June 23 and that staff expect a period of intense call volume and public contacts at rollout that the department is preparing to handle.

Public comment and adjournment

The committee opened the meeting for public comment on delinquent water bills and no speakers were recorded before the chair closed public comment and adjourned the meeting.