Huntingburg tightens extension agreements on delinquent utility payments

Huntingburg residents who take advantage of the city’s leniency regarding utility bills may find it harder to do so from now on.

City attorney Phil Schneider presented an amendment to the city ordinance regarding shutting off residents’ utilities.

A recent decision regarding a case in which the United States Federal District Court held that utility customers have the right to an impartial review of their case before their utilities are shut off. This decision has forced utility service providers to review their procedures in regards to disconnecting customers.

The process currently in place allows that a customer is given a disconnect notice and can appeal to the Clerk/Treasurer. The Clerk/Treasurer can hear their appeal and give them an extension agreement for three months to pay the bill. If they don’t meet the requirements of repayment then their utilities can be shut off.

Under the new ruling, the city must allow the resident one more opportunity for redress of the situation through an independent board. The amendment now provides that the property owner can address the situation with the city utility board before being disconnected.

While Schneider was researching the new requirements, he determined the city was being too lenient on the repayment of delinquent utility bills. Currently residents could set up a 3-month payment schedule with the clerks office. They are required to pay at least $10 or 10 percent each month and the balance paid within the three months.

According to Schneider, some residents are savvy to the procedure and take advantage of the city’s leniency. These utility customers will repeatedly become delinquent on their bill and use the three-month process; paying the minimum until the final month. The city was unaware that under state statute they are only required to provide the payment option one time per 12 months. 

Under the new ordinance the city will only allow one leniency period per 12 months and customers have to agree to remain current on all their utility payments for 12 months. In addition, the customer will be provided another opportunity for appeal before their utilities are shut off.