Under new legislation, city would not have to offer renters deferred payment agreements
By Kellen Olshefski
Editor
The City of Elkhorn Municipal Services and Utilities Committee voted in favor of amending electric and water operating rules in regards to deferred payment agreement offering to residential tenant customers at its meeting Monday night.
City of Elkhorn Utilities Director John Murphy said Monday the approval of Wisconsin Act 274 by legislators last summer and permits municipal utilities to refuse to offer deferred payment agreements, helping to keep unpaid utility bills off of the tax roll.
Murphy said Act 274 affects the renters, not landowners, that don’t pay their utility bill. Under the law, Murphy said the City is not required to offer renters meeting the criteria deferred payment agreements.
The criteria includes: having a balance of $100 or more of bills past due by 90 or more days, having defaulted on existing deferred payments in the prior 12 months, if their balance has been placed on any property owner’s tax bill in the utility’s service territory in the past two years, or if the renter has a balance that accrued in the winter moratorium (Nov. 15-April 15) that is more than 80 days past due. During the winter moratorium, Murphy said the city cannot shut the renter’s utilities off, though they don’t have to offer a deferred payment agreement come April. At that time, without full payment of back bills, the city could cut off power to those renters.
Currently, Murphy said the city gives those who don’t pay their utility bill several notices their power will be shut off and offered an option of a deferred payment, requiring 50 percent of the delinquent bill as a down payment, with the rest being tacked onto the utility bill over several months. However, if they default on that, Murphy said it’s currently the norm to give them another deferred payment.
If unpaid by the end of the year, Murphy said the balance is put on the tax bill and the landowner ends up paying for it.
Out of the 82 municipal electric utilities in Wisconsin, Murphy said, to date, 17 have adopted the new rules.
City Administrator Sam Tapson said the city’s current way of handling the issue is one of the most abused public policies.
“People take advantage of this,” he said.
In response to a question concerning window traffic at Elkhorn City Hall from Mayor Brian Olson, Murphy said he thinks the city will still have a busy office come spring time, though deferred payment agreements take time to take care of, time that the city would save in opting to amend the city’s rules.
Alderman and committee-member Hoss Rehberg said he was definitely in favor of amending the rules, a sentiment echoed by fellow aldermen and committee-members Gary Payson, Sr., and Greg Huss.
“Everybody has to pay their bill, just like I do,” Huss said.
However, the city would still need to make exceptions in regards to renters under the 200 percent poverty level and those with specific medical needs that can provide a signed release from a medical provider, according to Murphy.
He said under the new rules, there would be mechanisms in place for renters to prove they fall under these circumstances.
City of Elkhorn Finance Director James Heilman said under the new rules, he was a little concerned there was no possibility of consideration, though the city has built in options for extenuating circumstances, such as a death in the family or loss of a job.
“You don’t want to be just a cold heart to everyone,” he said. “But, the people that you see in here every year, those are the ones we’re really trying to deal with…you want to be able to play a little bit harder ball with those people.”
With unanimous approval, the topic will be sent forward to the City of Elkhorn Common Council for discussion and consideration by the full council at a future meeting.
