Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Council approves write-off policy; staff flags one uncollectible utility account with $664,000 in compounded penalties
Summary
Finance staff described a new policy to close nonpaying utility accounts after six months and presented one account that stopped using water in 2018, showing $8,000 of principal and roughly $664,000 in compounded penalties; council consented to move forward with the write-off.
David Price, who presented the utility accounts item, told the council the town adopted a policy earlier this year to close accounts after six months of nonpayment and explained that one account in question stopped using water in 2018 and the account holder could not be located.
Price said the account contains about $8,000 in original billings; the remainder of the balance—about $664,000—reflects compounded penalties under a 10% monthly penalty applied since 2018. "Of this amount, only 8,000 is of actual billings. 664,000 is compound penalties," Price said during his presentation.
Price told council he had delayed recommending write‑off for one account while staff verified collectability; with the account owner and related landowner deceased or unlocatable, he recommended removing the liability from the town’s books. Council voiced consensus to move forward with the write‑off as part of the town’s uncollectible debt policy.
The council did not vote a recorded roll call on this specific account during the meeting; the decision was recorded as staff recommendation and council consensus to proceed. Price said staff can provide additional details if council requests further itemization or legal follow‑up.
