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Officials highlight $300,000 in overdue utility bills and call for outreach
Summary
Finance staff told commissioners roughly $300,000 in utility accounts receivable is over 60 days unpaid; commissioners recommended more outreach to connect residents with assistance programs and discussed the social effects of unpaid bills given high local poverty rates.
Finance staff (Ron) told the committee that roughly $300,000 in water, sewer and trash bills are more than 60 days past due and are contributing materially to the city's cash constraints.
"So that's 1 of the issues with cash right now is that not all the utility bills are being collected," Ron said, noting the city rolls unresolved balances onto property tax bills in October as a collection mechanism.
Commissioner Henry stressed the human impact, saying about "47 percent of the people live below poverty," and urged the city to pair collection with supports so residents are not pushed into foreclosure. Commissioners discussed reviving outreach used during the COVID period and partnering with Southwest Michigan Action Agency to connect residents with assistance plans.
Staff said the city already uses a mechanism that rolls unpaid balances to property taxes and that it has offered shutoffs for nonpayment; the administration agreed to prepare a distribution showing how many accounts are over 60 days and to explore more proactive communications about assistance options.
Next steps: Finance staff will provide a breakdown of the 60+ day balances and the number of affected accounts; commissioners suggested local agencies be invited to expand outreach and payment-assistance options.
