TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, Consider and Approve Ordinance No. 998, Establishing a Process for Non-Payment of Utility Bills for the Town of Westlake (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The Town of Westlake does not currently have an ordinance in place to direct staff on how to handle the non-payment of monthly utility bills. Adopting an ordinance is considered best practice in the industry. This ordinance will allow staff the ability to impose fees for non-payment, offer a path to collect outstanding balances, and impose a deterrent to prohibit further theft of services. Without these mechanisms in place, the Town must set higher rates to recoup its losses, thereby punishing the customers in compliance and placing an unjust burden to provide vital services.
DISCUSSION:
Beginning in May 2023 through April 2024, the Town billed an average $552,788 per month. The average past due aggregate balance was $141,375 per month, which represents 21% all receivables at any given time are in arrears. As of April 30, 2024, $110,871 was more than 90 days past due and can be referred to collections.
FISCAL IMPACT:
The recovery of any funds through collections and any fees assessed would increase revenues in the Utility Fund and lower the amount of doubtful accounts. Without the passage of this ordinance, future rates will be calculated to assume losses and result in higher costs for timely payers.
STAFF RECOMMENDATION:
Staff recommends the approval of Ordinance 998.
ATTACHMENT(S):
Ordinance 998 (including 2 attachments)
Analysis of Past Due Accounts
TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny