Submitted By
Steve Drazner, CFO
Reviewed By
CLP
Agenda Item Title
Title
An Ordinance Temporarily Suspending Water Service Disconnections for Accounts More Than Thirty Days Past Due After Statement Date
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Overview
Overview
On July 20, 2020, the Village Board adopted Ordinance 20-064 to confirm the temporary suspension of water service disconnections for accounts more than thiry days past due. This action expired September 30, 2020 and staff is seeking extension through February 16, 2021 due to the ongoing COVID-19 pandemic and related economic crisis.
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Recommendation
Recommendation
Staff recommends adoption of the Ordinance.
Fiscal Impact
It is estimated that by extending the suspension of water shut offs from September 30, 2020 to February 16, 2021, CFO Drazner estimates that past due balances may increase by an additional $100,000 to $200,000.
Background
Due to the COVID-19 disease outbreak, under Resolution 20-120 adopted on March 13, 2020 declaring an emergency affecting public health due to the COVID-19 outbreak, the Village Manager previously suspended water shut offs on a temporary basis for accounts more than thirty (30) days past due as outlined under Section 26-2-4 of the Village Code. Upon expiration of the initial and extended emergency declarations, the Village Board adopted Ordinance No. 20-064 to continue the suspension of water shut-offs through September 30, 2020. However, as the pandamic is unfortunately still an ongoing situation, it is recommended to further extend the suspension through February 16, 2021.
In terms of financial impact, at the end of February before the pandemic started, account balances more than thirty days past due totaled approximately $255,000. As of October 6, 2020, the total past due balance has increased to $624,000. However, of this amount, approximately $252,000 is past due from one customer Extending the suspension of water disconnections will likely continue the upward trend in past due accounts.
Alternatives
Should the Village Board opt to resume with water service disconnections pursuant to the Village Code, staff will continue to execute payment plan arrangements upon customer request and also refer eligible customers to Housing Forward for possible assistance in paying past due utilities for those who qualify.
Previous Board Action
On July 20, 2020, the Village Board adopted Ordinance 20-064 to continue the suspension of water shut-offs through September 30, 2020.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A