Sellersburg council approves first reading of renter utility-deposit ordinance

The Town of Sellersburg on April 13 approved the first reading of Ordinance 2026-R-007, which establishes utility deposits for renters who receive town water and sewer services.

Under the ordinance, each renting customer must provide picture identification and landlord contact information and pay a $150 sewer deposit and a $150 water deposit. Deposits are to be held in a non‑interest-bearing account and are refundable within 30 days after account transfer or termination if the account balance is current; if outstanding balances remain, the deposit will be applied to the balance and any remainder returned.

Staff told council the policy responds to recent changes in state law that restrict collection methods for non‑owner‑occupied properties and reduces the town’s ability to recover unpaid balances by liening property. Council members asked whether the deposit amounts are sufficient and discussed current practices: water is typically shut off after 60 days of nonpayment and lien procedures historically occurred at 90 days for owner-occupied properties.

Council moved and approved the ordinance on first reading; council discussed whether to waive or schedule the second reading and confirmed they will set the timing at the next meeting.

No immediate budget appropriation was recorded during the April 13 motion; staff said the ordinance creates a utility deposit fund to be administered by the clerk‑treasurer in accordance with state board of accounts guidance.

The ordinance will take effect upon final passage and promulgation once signed by the majority of the council members.