Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates topic
No spam. Unsubscribe anytime.
Richlands council reduces utility late fee from 10% to 7% after debate
Summary
Council voted unanimously to adopt a late-fee ordinance amendment lowering the penalty from 10% to 7%, after members debated the budgetary and equity impact of late‑fee revenue and possible cost shifting to other customers.
At a recessed session Tuesday the Richlands Town Council voted to adopt an amendment to the late-fee ordinance (O2025-1102) that reduces the penalty for late utility payments from 10% to 7%.
Council member Jordan moved to reject the amendment as presented but members ultimately amended the underlying motion so the ordinance would be adopted at a 7% rate. The amendment passed and the ordinance at that rate passed on roll call votes recorded in the meeting.
Opponents argued the fee reduction would shift shortfalls to timely payers and leave the town to cover budget gaps. Jordan warned the shortfall "simply gets shifted" onto other customers and described the late fee as intended to offset collection costs. Council member Seth and other supporters of the reduction said the 10% penalty is excessive and can unduly burden struggling households; Council member Laura said for a $130 water bill a 10% late fee is $13 and that she preferred a lower rate.
Staff and council discussed budget consequences: staff reported the budget committee had modeled the step‑down from 10% to 7% and indicated an approximate planning estimate that every percentage point of late fee equates to roughly $15,000 in municipal revenue (cited in meeting discussion). Council members said the reduction should be monitored and could be revised in next year's budget cycle if the town sees an outsized revenue shortfall.
What happens next: The amended ordinance was adopted at 7%; staff will monitor collections and budget impacts and present updated figures to council as part of the monthly financial review.
