Collecting on delinquent accounts

As various sections of municipal infrastructure age and need to be replaced, the Saratoga-Carbon County Impact Joint Powers Board (SCCIJPB) is looking everywhere for potential revenue sources. One of those sources is the money owed to the Town of Saratoga from delinquent water and sewer users.

During their December 9 meeting, the SCCIJPB discussed the delinquent accounts—some only 60 days past due and others more than three years in arrears—and how best to collect on them. On the night of the meeting, Chairman Richard Raymer shared a nearly four page list of the late accounts with the rest of the board.

“I went through today and just did some quick review of all of this. I think where we’re at now is just a conversation starter,” said Raymer. “We’ve got about 30 accounts that are beyond 90 days delinquent and then we’ve got an additional six more that are more than 12 months. Some up to over three years delinquent since the last payment made.”

One account that Raymer used as an example was an account which had accumulated nearly $5,500 and had recently made a payment in October of $100. The total amount in unclaimed debts to the Town of Saratoga from water and sewer users was approximately $65,000. Raymer added, however, that likely included weed and pest. 

“As we’re sitting here trying to come up with projects and maintenance on our system, $65,000 is a lot of money that can be applied towards things we need to be doing,” Raymer said. “It’s also something that I feel that, as we’re trying to figure out how to pay for things and the ugly words of ‘rate increase’ come up, I don’t feel that it’s fair to tax the residents that are paying their bills on time to compensate for the residents that are not paying their bills.”

Vice Chairman Craig Kopasz raised the possibility that some of the accounts which were deep in arrears could potentially be water and sewer users who had experienced a significant water leak.

“I know, in the past, some people have been here and they’ve had a water leak or something,” said Kopasz. “There might be a handful of these, I don’t know, but I think we definitely need to contact each person over 90 days, I think that’s what’s in the ordinance, and let them know what their delinquent is and get some information from them.” 

As discussion continued, Raymer brought up the potential of the Town of Saratoga filing liens on properties that were more than 90 days delinquent on their accounts. Kopasz, looking at the list, stated that with a number of accounts there were notes on different user accounts that they had been notified multiple times.

“Well, what’s the notification? Is it part of their bill that says it’s past due in red? I think, at a minimum, we need to make sure the Town reaches out and contact them to say, ‘Hey, you’re past due. The next step is we’re going to file a lien on your property’ because we could do that,” Kopasz said.

While Raymer stated that a lien could provide a large amount of paperwork for an attorney, Councilmember Jon Nelson, joining via videoconference, stated that he believed the process of filing liens on properties was one undertaken by the town clerk.

“My recollection from sitting through a WAM (Wyoming Association of Municipalities) Conference maybe two years ago was that the lien process with municipalities is really spearheaded by the clerk and then the council provides permission to file the lien but that it’s not something that the attorney needs to be involved with because the authority is inherent to the Town,” said Nelson.

Discussion eventually turned to what was in Saratoga Municipal Code in regards to late payments for water and sewer service. Section 13.60.010 of the municipal code regulates delinquent charges, payments and termination of service for water service.

Under 13.60.010(C), it reads that a bill will be considered delinquent if it is not paid in full and that a late payment of $10 “shall be charged” on the 15th day of each month a bill remains delinquent. That same section also reads that until the total late and current billing are paid, there is no grace period and “all charges are absolutely payable on or before” the 15th day of each month. Additionally, one-third of the delinquent bill and the current billing is due and payable.

“I think we need to have the town clerk contact everybody that’s past 60 days and say, ‘Your water’s going to get shut off unless you pay’,” said Kopaz. “Have her draft up the language and quote the ordinance verbatim and say, ‘Hey, pay your bill or else you’re going to be getting no water’.”

The Saratoga Sun raised the possibility with the joint powers board that there might be some on the delinquent list who could have been affected by previous or current economic hardships due to state health orders. In March 2020, Governor Mark Gordon and the Wyoming Public Services Commission issued an order prohibiting late fees or service interruptions. That order was not given a sunset date, but stated that it was in effect until “superseded by another order.”

Nelson also raised the issue of water shut-off for local businesses. According to Nelson, if the Town of Saratoga shut off water service to a business that utilized it, the business would then be unable to pay on the delinquent account.

“I agree with Craig on the letter,” said Joe Parsons, SSCIJPB member. “I think a more stringent letter, sent to somebody that hasn’t made a payment in 2020 would be more appropriate than people that have made payments in 2020 and maybe fell behind and they’re still making payments. They’re just trying to get caught up.” 

“We don’t know how many on that list are making a legitimate effort to try and do something,” said Raymer. “So, we’ve got to take that into consideration, too.”

Eventually, the joint powers board agreed that it was best to request the Saratoga Town Council begin enforcing ordinance in regards to late payments. A motion for such a recommendation, and for a list of delinquent accounts to be furnished to the SCCIJPB, passed unanimously.

The next meeting of the Saratoga-Carbon County Impact Joint Powers Board will be at 6 p.m. on January 13, 2021 at the White Room of the Platte Valley Community Center.