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Sellersburg council asks staff to draft refundable tenant utility deposit after recurring unpaid-bill problems
Summary
Council members asked staff to analyze delinquent- bill data and draft an ordinance for a refundable security deposit for renters to prevent unpaid utility costs; staff suggested a refundable deposit in the $100–$300 range and will return with averages and a draft ordinance.
During new-business discussion on March 9, Town of Sellersburg officials discussed requiring a refundable security deposit for rental accounts to prevent unpaid water, sewer and sanitation charges from shifting to other ratepayers. The change follows limits the town cited on recovering unpaid balances directly from property owners under current law.
Town manager Charlie Smith told the council that the issue has been more frequent since a change in law and recommended staff gather data on average delinquent amounts to inform a deposit level. "I'm saying somewhere in the $300 range coverage," Smith said as an example of the upper end staff is considering. Other staff suggested starting with a smaller refundable amount (for example, $100) or combining an administrative fee with a security deposit; staff committed to pulling delinquency averages and drafting proposed ordinance language for council review. The council did not vote on an amount but directed staff to return with data and a draft ordinance for consideration at a future meeting.
During the discussion an official noted a legal constraint: "As of right now... the town cannot go after the landlord," citing a statutory protection referenced in the meeting. Council members emphasized the proposal would be structured so deposits are refundable if tenants remain current, and that staff should ensure any recommended amount would not unduly burden renters while protecting ratepayers from repeated unpaid balances.
