June 29, 2006

By Diane Chiddister

How compassionate and patient should the Village of Yellow Springs be when dealing with residents who have delinquent utility bills? At the Village Council meeting on June 19, Council members disagreed about this issue in response to several suggestions made by Village Manager Eric Swansen regarding possible new procedures for the Village Utility Service.

The recommendations, which Swansen made after conferring with Village Utility staff members and the Utilities Dispute Resolutions Board, comprised one segment of Swansen’s ongoing presentation to Council on possible ways to increase revenues and decrease expenses in an attempt to address this year’s Village budget deficit of almost $1 million.

Monday’s meeting was intended as a discussion of possible changes to the utility department, and no action was taken. While some of the proposed changes are intended to help the Village take more control over delinquent accounts, others aim to keep local utility practices more in line with those of the Public Utility Commission of Ohio, or PUCO, according to Swansen, who said that the Village has been advised by an attorney to reflect PUCO policies as much as possible.

According to Swansen, the Village has lost about $225,000 “over a number of years” from delinquent utility accounts. In a written statement to Council on the financial impact of the loss, Swansen stated that “To the extent that the Village is able to reduce the bad debt expenses of the enterprise funds, the rates for all customers will be kept to a minimum.”

The proposed changes for utility service that sparked debate included shortening the amount of time before a delinquent customer’s utility service is disconnected, from the current practice of disconnection 60 days after the bill is overdue to 30 days after delinquency; allowing utilities cutoffs in winter if the customer does not make a minimum payment of $175, as compared to the current practice of no disconnections in winter; requiring customers with delinquent bills to pay their current bill, a penalty and 1/6 of the outstanding balance monthly to avoid having their utilities shut off, rather than the current practice of current bill payment, a penalty and 1/12 of the current balance; and raising the amount for utilities connection to $250 from $200.

While Council members Karen Wintrow, Bruce Rickenbach, Kathryn Chase and Council President Jocelyn Hardman expressed support for the changes, Judith Hempfling stated that she felt that the Village should not make it even more difficult for low-income people to live in Yellow Springs.

“I understand that we need to be more on top of the situation when people get behind in their bills,” she said. “But my concern is that people of low income face difficult economic challenges always. They’re behind on bills because they’re struggling financially. It’s important that we find ways not to be punitive.”

But according to Utilities Manager Sharon Potter, the Village needs to tighten up its utility repayment practices.

“Being lenient and compassionate in the past is how we ended up here,” she said.

The requirement of a $175 payment to avoid winter disconnection mirrors the current PUCO winter heating rules, Swansen said. Also, if the Village increases the amount a delinquent customer must pay monthly on the balance, it will be more aligned with the PUCO practice of requiring a delinquent customer to repay one-third of the outstanding balance monthly, along with the current bill.

Hempfling said that it doesn’t make sense to raise the amount delinquent customers must pay monthly, if they are already successfully paying off their bill at a lower rate.

“I’m for keeping it lower so it’s doable,” she said

Overall, Hardman said, “What we’re doing now doesn’t work. We’re $225,000 in arrears.”

Rickenbach stated that he would feel uncomfortable with allowing the Village to disconnect utilities in winter, except that there are county and state grants available which will help low-income people make the $175 payment. Potter stated that grant information and phone numbers are displayed near the Village Utility office.

But people who can’t qualify for the grants may still have trouble meeting their bills, especially in a town with the relatively high prices of Yellow Springs, Hempfling said. The increased initial deposit will add more stress to renters who must already come up with the first and last month’s rent before they move in, she said.

Other suggested utility office changes included reducing the window hours at the utilities office from the current hours of 8 a.m. to 4:30 p.m. to between 10 a.m. and 2 p.m. daily, with other times by appointment, hiring a new collection agency for delinquent bills, clarifying the definition of new utilities customers, eliminating the payment of a 5 percent fixed rate interest on deposit amounts, conducting an analysis of the actual cost of utilities connection, providing a lockbox for payments and outsourcing bill printing.

Contact: dchiddister@ysnews.com