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Huntertown council adopts ordinance to recover overdue utility bills via state tax-refund intercept
Summary
The council unanimously adopted Ordinance 2026-003 permitting Huntertown Utilities to submit eligible delinquent accounts to a state tax-refund intercept program administered with the Association of Indiana Counties; town staff said accounts more than 30–60 days past due with balances above roughly $25 may be submitted and debtors receive a 30‑day notice before any refund offset.
Huntertown’s Town Council voted unanimously on an ordinance to give the town a new tool for collecting unpaid utility charges. Ordinance 2026‑003 authorizes the utility office to submit eligible delinquent customer accounts to a state tax‑refund intercept program administered by the Indiana Department of Revenue in partnership with the Association of Indiana Counties.
Staff explained the eligibility framework used by the program: closed accounts that are at least 30 days past due and active accounts that are at least 60 days past due may be submitted if the balance meets the program threshold (staff cited roughly $25 as the minimum). The Department of Revenue will compare account holder information to state tax‑return records; when a match is found the individual receives a formal notice and has 30 days to pay before the State offsets a refund. Staff said the only direct cost to the town is a small per‑letter fee (about $2) charged to send the notices. The ordinance references a six‑year statute‑of‑limitations window for eligible debts.
Council discussion focused on mechanics and precedent: staff said the program is at no cost to the town beyond the letter fee and that collection through the tax‑refund process can recover accounts that otherwise would be difficult to locate, such as customers who moved out of state. Council members asked whether existing town collection procedures—shutoff, litigation, and other remedies—remain available; staff confirmed those options remain part of local policy.
The council voted first to introduce and consider the ordinance, then adopted it in a separate roll‑call vote. The roll call recorded support from the council members present and the ordinance will be accompanied by a memorandum of understanding with the administering association before staff submits accounts.
The ordinance does not change existing shutoff or enforcement authorities; rather, it adds the tax‑refund intercept as an additional collection method for eligible past‑due balances. Staff said they will present the memorandum of understanding and the administrative checklist for council review as the program is implemented.
Actions: Ordinance 2026‑003 — collection and writing off of debt owed to Huntertown Utilities (adopted). Vote: unanimous approval by roll call.
