System’s late bills concern officials
Published 12:00 am Wednesday, June 28, 2000
Another push to increase delinquent Union-Rome Sewer District bill collections might start next week as county commissioners continue to discuss Ohio-American Water’s proposal to manage the financially troubled utility.
Wednesday, June 28, 2000
Another push to increase delinquent Union-Rome Sewer District bill collections might start next week as county commissioners continue to discuss Ohio-American Water’s proposal to manage the financially troubled utility.
The county could send delinquent notices to users with outstanding bills once six-month budget figures are analyzed at the end of June, county auditor Ray Dutey said.
The numbers will let commissioners know more about the sewer system’s financial health, Dutey said.
A decision on sending extra delinquent notices will be made afterward, if necessary, he said.
Such notices would become the latest in a series of steps county leaders have taken to reduce the amount of money owed the sewer district and improve its cash flow.
Funded through the county, the district has been plagued with a dwindling budget. The delinquent bill rate hovers at 40 percent and it takes more carryover budget money to meet yearly obligations, commissioners said.
"I’m very concerned because it appears there is more money going out than there is coming in," commission president Bruce Trent said.
So, the county is taking steps by targeting the delinquency problem, he said.
Earlier this month, letters mailed to the district’s 3,800 customers explained that bills not paid on time would be subject to a 15 percent late payment penalty, rather than the current 1 percent.
Trent said he wants to see what effect the letters have had on collections and plans to ask sewer district administrators for a report at Thursday’s commission meeting.
The commission voted to change the delinquent penalty in May.
Sewer bills will not increase because rates are not increasing, but the new delinquency charge will be enforced strictly, commissioners said.
The county’s goal is to prompt users not to let bills get to the point that they are collected by linking the amount owed to the user’s property tax bill, as allowed by state law.
Meanwhile, the county is still considering a proposal to contract out the management of the sewer system to improve collections and efficiency – a moved pushed by budget shortfalls, they said.
In May, American Water Services Inc. of Pennsylvania proposed a management method it says could save the county between $8,000 and $55,000 per year, depending on which plan is used.
Commissioners, sewer district administrators and the Union-Rome Sewer Advisory Committee continue to review a drafts of the management proposals. No action has been taken, Trent said.
But the advisory committee – a users’ groups that has been studying the district’s financial troubles since last year – plans to discuss personnel issues with the commission Thursday, he said.