Water, Wastewater and Stormwater Billing and Collection Policy

Transcription

1 August 24, 2016 Page 1 of 15 Staff Report Meeting Date: August 24, 2016 Submitted by: Number: Subject: Tiffany Farrell CS Water, Wastewater and Stormwater Billing and Collection Policy Recommendation: THAT the Water, Wastewater and Stormwater Billing and Collection Policy be adopted; and FURTHER THAT newly tenanted properties subject to water, wastewater and stormwater charges be invoiced directly to the property owner; and FURTHER THAT existing tenants and applicable property owners be advised of the change; and FURTHER THAT where there is default in payment of tenant water, wastewater and stormwater accounts due to the Municipality (over 60 days) current account holders will become subject to the change in policy. Purpose: This policy has been created for the purpose of providing guidance to Council and staff and provides a basis for decision-making relating to water, wastewater and stormwater billing and tax collection procedures for all customers in the municipality. It is designed to be implemented in accordance with the governing legislation and will assist with the ongoing success of administration; specifically, it will ensure prompt, efficient, courteous and consistent service to all customers in the municipality.

2 August 24, 2016 Page 2 of 15 Background: The Municipality did not have a water, wastewater and stormwater billing and collection policy in place, rather the Municipality followed municipal by-laws, Provincial Acts and Regulations with respect to the procedures it followed. A policy has since been written to provide additional guidance to staff. Presently the Municipality has allowed rental properties to be set up in the name of the tenant. This has produced many issues within the office with respect to collection when ultimately it is the responsibility of the property owner. It is being recommended that this practice is changed on a go-forward basis to reduce staffing costs and burden on property owner. These Changes are being recommended to ensure minimal financial risk to the municipality and to property owners who rent properties that are also water and/or wastewater users. Analysis: Refer to attached policy and presentation Financial Implications: The purpose of this policy is to ensure that the municipality is in a position to manage its accounts receivable effectively and to ensure timely collection to minimize outstanding amounts owing to the municipality. Strategic Plans: Financial: Manage Costs Financial: Maintain Financial Integrity Customer - Satisfaction

3 August 24, 2016 Page 3 of 15 Category: Water, Wastewater and Stormwater Billing and Collection Policy Policy No.: Revisions: Pages: 4 Effective Date: August 24, 2016 Report No.:CS Water, Wastewater and Stormwater Billing and Collection Policy Purpose: The Corporation of the Municipality of Middlesex Centre recognizes the importance of having a written billing and collection policy for water, wastewater and stormwater service accounts, incorporating good and acceptable business practices and efficiencies and, which is consistent and fair to its customers and to the Municipality. Scope: The Water, Wastewater and Stormwater Billing and Collection policy applies to all customer water, wastewater and stormwater service accounts within the geographic boundaries of the Municipality. Municipal staff assigned to the administration and collection of water, wastewater and stormwater accounts shall adhere to the policy and procedures detailed below. Objectives: This policy is written in compliance with the Municipal Act, 2001, related Ontario Regulations made under the Act and applicable Municipality by-laws, as amended from time to time. Roles & Responsibilities: Municipality staff assigned to the billing and collection of water, wastewater and stormwater accounts shall adhere to the policy and procedures detailed below. Procedure: Billing Cycle Water, wastewater and stormwater bills will be mailed a minimum of fifteen (15) days before the due date. Due Date Due dates will be the last working day of the month, according to the established billing cycle for the specific areas.

4 August 24, 2016 Page 4 of 15 Payment Water, wastewater and stormwater billings are payable as follows: 1. Mailing cheque payment directly to the Municipality office. 2. Cash, Cheque or Debit payment at the Municipality Office during regular office hours or by using the mail slot. 3. Payment at any recognized bank or trust company. 4. Payment by telephone or internet banking. 5. Pre-Authorized payment plan. The receipt date will be the official date of payment. Returned Cheques In the event a cheque is returned from the bank, i.e. Insufficient Funds or Staledated, the customer shall pay applicable late payment penalty and interest charges and an additional fee, as established by by-law. In the event a cheque is returned from the bank Post-dated no charges will be made. Penalty and Interest Charges In the event of default of payment by the due date a penalty charge shall be imposed on the first day of default following the due date and first day of every calendar month thereafter until paid. If paying by mail, the customer assumes responsibility for late arrival. A request for relief of penalty will be first considered by the Financial Assistant. A penalty charge as a result of an error by the Municipality shall be credited back to the customer equal to the amount charged. All other requests for relief of penalty must be in writing to the Director of Corporate Services. The amount of penalty charge imposed will be in accordance with municipal fee by-law as amended from time to time. Other Charges Corporate Services department may administer other charges as applicable in accordance to the municipal fee by-law as amended from time to time. Tenanted Accounts Tenant accounts set up prior to the date of this policy will continue to be recognized. Bills will be sent to the tenant until such time the tenant leaves or the account goes into arrears. Once a tenant leaves the property, or as a result of non-payment is disconnected and the balance is transferred to the property owner s property tax account, the account will be in the name of the property owner. Page 2 of 4

5 August 24, 2016 Page 5 of 15 All new water, wastewater and stormwater accounts that are established after the date of this policy will be set up in the property owners name only and all charges will be the responsibility of the property owner. Final Accounts Where the municipality has been notified that a final meter reading is required as a result of a property sale, the final meter reading shall be done. Where a property has been sold, payment must be received within 30 days of the final bill being issued. Where a final bill has not been paid within 30 days, within 7 days a letter will be sent to: the previous property owners; the new property owners; and the lawyers for each party as applicable, informing them that should payment not be received within 10 working days, the overdue charges will be added to the property tax account, subject to the provisions of section 398 (2) of the Municipal Act, Where a final bill has been sent in regard to a tenanted property, and there is no response within 30 days, the balance will be transferred to the property owner s tax account. Collection/Accounts transferred to taxes Statements for overdue accounts for property owners and tenants will only be mailed out for balances that are 60+ days overdue. A fee for statements sent will be added to the account in accordance with the municipal fee by-law as amended from time to time. Accounts that remain unpaid 15 days after the statements are mailed will be transferred to the property tax account. An administration fee will be included as outlined in the municipal fee by-law which is amended from time to time. A letter outlining this transfer will be sent along with a current statement of the water account and property tax account, showing the transfer to the property owner. Neglected bills by the tenant will be the responsibility of the landlord and will be transferred to the property tax account in accordance with Section 398 (2) of the Municipal Act, Disconnection The Municipality reserves the right to shut off or reduce the supply of water to any premise that has unpaid fees and charges. The Municipality shall restore the supply of water upon payment to the Municipality of such overdue amounts plus any applicable service charges, penalties and interest. Page 3 of 4

6 August 24, 2016 Page 6 of 15 Small Balance Write off When an account has been finalized, if the outstanding balance is less than $50.00, this amount may be written off at the discretion of the Director of Corporate Services, and no action will be taken to recover this amount. Where the Director of Corporate Services determines that certain accounts are uncollectible, the amounts may be written off within the approved budgeted amount each year. Page 4 of 4

7 August 24, 2016 Page 7 of 15 Presented by: Tiffany Farrell, CPA, CA Director of Corporate Services

8 August 24, 2016 Page 8 of 15 Presently the Municipality sets up all water and wastewater accounts in the name of the tenant, unless the landlord sets it up in their own name on their own The Municipality collects a tenant deposit of $200 to be applied to an outstanding balance or final bill If the Municipality cannot collect from the tenant the balance is transferred to the landlord s property tax account and the landlord is then notified of the outstanding balance owing. 2

9 August 24, 2016 Page 9 of 15 Costly process for the Municipality, time consuming with respect to dealing with tenants and landlords Landlords have been upset when balances are transferred to their property tax account and they are not aware of large balances owing (Municipality unable to disclose the information until it has been transferred due to Freedom of Information and Privacy Act The deposit amount collected will now only cover one bymonthly minimum bill, may not be sufficient Landlord & Tenant issues with respect to disconnection of water Experience with difficult tenants 3

10 August 24, 2016 Page 10 of 15 All tenants presently set up as a tenant in our system will remain under their own name as long as the account remains in good standing. Once the tenant account is no longer in good standing the Municipality will transfer the account balance to the property owners property tax account, the deposit would be applied and the account would be closed and reopened in the property owner s name. Once a tenant leaves a property the account will be transferred into the name of the property owner All new rental properties will be set up in the property owner s name The Municipality will no longer accept tenant deposits. 4

11 August 24, 2016 Page 11 of 15 Some concerns regarding proposed change: Tenants conserve more water if they are responsible for the bill Landlords do not want more burden on them for collection Landlords do not feel responsible for this charge However, Municipal staff feel this is a positive move and although many landlords do not want to be responsible for their tenants water account, they already are. 5

12 August 24, 2016 Page 12 of 15 Section 398 (2) (2) The treasurer of a local municipality may, and upon the request of its upper-tier municipality, if any, or of a local board whose area of jurisdiction includes any part of the municipality shall, add fees and charges imposed by the municipality, upper-tier municipality or local board, respectively, to the tax roll for the following property in the local municipality and collect them in the same manner as municipal taxes: In the case of fees and charges for the supply of a public utility, the property to which the public utility was supplied. 6

13 August 24, 2016 Page 13 of 15 Letters to be sent out to all identifiable landlords in Fall 2016 advising of the change Information posted on the website Follow-up letters to be sent out to all identifiable landlords in January

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