Finance Committee Agenda and Packet 2010 11 15

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PAGE TWO SUBJECT: UTILITY BILLING ISSUES DATE: NOVEMBER 15, 2010 received a billing credit (12) versus which accounts should be issued a check (7). Review of Utility Accounts and Red Tag Procedures: Currently, if a utility bill becomes severely delinquent, a "red tag" is placed on the resident's front door indicating that their water service will be terminated for failure to pay their utility bill. On the red tag is the notice of delinquency along with the amount owed. Recent changes to Colorado's credit laws appear to require that we change the way we notify account holders of delinquencies because the current procedure could compromise privacy and credit protection issues. We are currently reviewing this issue with the City Attorney. As a result of these concerns, and on -going concerns regarding the integrity of our billing database, as well as staffing shortages and turnover, in mid -May 2010 the Finance Department suspended issuing "red tags" and shutting off service for failure to make payment. As a result of suspending shut off procedures, the number of delinquent accounts has grown. We currently estimate there are 300 -350 accounts with receivable balances past due more than 40 days. Some of these consist of tenant balances that will be transferred to the property owners. Some of these are past due amounts that should be "red tagged" (whatever form that takes) with the possibility of shut -off. And, finally, some of these will likely be very old balances with no current activity and staff will recommend be written -off. This analysis will be brought to the Finance Committee at a later date for review, discussion and approval.