Published: November 22, 2008 08:18 pm      

New Albany uses taxes to collect overdue utility bills

New Albany’s stormwater and sewer departments could collect more than $500,000 in overdue bills through property tax liens.

Ron Carroll, chairman of the sewer and stormwater boards, said more than 200 liens have been authorized through City Controller Kay Garry. Those liens are passed to the county recorder to be placed on property taxes of the customers who owe on bills.

If those liens are collected, they will make up the bulk of the $500,000 collection predicted by Carroll. Some of the money also would come from pre-lien notices. Officials said some customers rather would pay notices than have a lien end up on their financial record.

Many of the pre-lien notices are from 2007. Notices are sent to customers after their bills are unpaid for 90 days.

A city official said the majority of the actual liens are for sewer — but some are for stormwater — and that they range from “$80 up to several thousand dollars.”

Once the fees are collected, they will revert back to the stormwater or sewer fund, depending on the utility that was owed.

Carroll told the City Council on Thursday that the sewer and stormwater boards will be looking at more ways to help financially.

“Let’s find ways we can get some more revenue,” Carroll said.

The unpaid fees don’t qualify as new revenue, since the money was already owed for service. Still, Garry said the amount of liens authorized was more than the 50 or so she’s used to dealing with at a time.

The stormwater and sewer boards allow customers to state their case for a bill adjustment during bi-monthly meetings. Board members stress customers should contact Kelly Welsh, the sewer billing director, about circumstances — such as a leak — that may have led to a sizable increase in their bill.

Carroll, who also serves as a financial adviser to Mayor Doug England, says there are other ways to maximize utility revenues.

The city taking over stormwater services from Environmental Management Co. on Jan.1 will help some, Carroll believes, as will having a firm budget, which was passed by the council Thursday.

“I guarantee the city is going to notice the difference,” he said.