Property owners who haven’t paid their storm water fees may take a hit on their credit scores if they don’t pay up under a proposal the City Council will consider Monday.
When the council abolished the controversial Stormwater Enterprise after the Nov. 3 passage of ballot Issue 300, council members asked city staff to come up with recommendations for collecting past-due fees, which now total more than $2.5 million.
The staff’s recommendation is to task the city’s current collection agency to go after delinquent property owners.
Under the proposal, the city will provide the collection agency a list of overdue accounts.
“Letters and phone calls will be (the) primary collection method,” according to a PowerPoint presentation prepared for the council.
“Delinquent accounts may be reported to (the) credit agency – this is our option, not mandatory,” documents state. “This credit report acts as the ‘incentive’ or the ‘stick’ to encourage people to pay their bill.”
The collection agency will file a so-called notice of lien against a property “only when all other means have been pursued,” documents state.
However, no action will be taken on the liens.
“Liens will likely be paid off when properties are sold,” documents state.
The collection agency will receive 30 percent net of collections on regular accounts and half “for accounts where legal action is taken to collect.”
Of the $2.5 million in unpaid fees, $1.9 million is past-due 90 days or more.
“There has been an approximate 15 percent decline in bill payment of the invoices that have been issued since passage of Initiative 300,” documents state.