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Council removes $6 late fee and updates shutoff code; staff to codify new $100 threshold and enforcement rules
Summary
Southern Pines approved Ordinance 31-60 to remove the $6 late fee and clarify shutoff and reconnect rules, adopting a $100 arrearage threshold (staff to implement appendix-based reconnect fees). Staff estimated the revenue impact at roughly $48,000–$50,000 and discussed outreach, collection and compassionate safeguards.
Town staff presented Ordinance 31-60 on Jan. 20 to revise the town code on utility late fees and shutoffs. The draft removes the $6 late fee from the code and sets administration language that places a $100 arrearage threshold (staff noted the threshold is adjustable) for placing accounts on a shutoff list; the ordinance references appendix language for a $20 reconnect fee and related administrative charges.
Staff estimated the annual revenue impact to the utility fund at about $48,000 to $50,000, and emphasized the change was intended to reduce regressive small-dollar fees while preserving a workable process to collect chronic delinquent accounts. The town recorded 161 accounts that became delinquent while shutoffs were suspended; some reflect customers who moved and may not be collectible. Staff described collection tools (tax debt setoff, holding service until prior debts are paid when identity is verified), outreach (calls, emails, door tags), and trial measures to make customer contact less stigmatizing.
Council members pressed staff for operational details (average bill range of $60–$90, timing of shutoff cycles, reconnect fees, and whether to allow exceptions in heat or holiday months), discussed compassion for residents who miss bills, and highlighted options for payment plans and better customer communication. Council voted to adopt the ordinance by voice vote; staff will update code text, adjust packet references (e.g., clarification that the $6 language is removed from section 5005), and proceed with implementation and auditability.
