3,900 Lacey ratepayers have a delinquent water bill. Here’s the plan to collect
Over the next few months, the city of Lacey will take steps to collect $2.23 million in delinquent water bill accounts, Lacey City Council learned Thursday, and the process came with a warning.
If a ratepayer with an overdue bill hasn’t worked out an arrangement with the city or made a payment, the city will begin to shut off water the week after July 4, Finance Director Troy Woo told the council.
City officials says the COVID-19 pandemic is to blame for the situation the city finds itself in.
During the early days of the pandemic, the state took steps to protect residents by issuing a moratorium that prohibited any termination or enforcement of past due utility bills. Woo acknowledged it was the right thing to do because businesses were forced to close and the economy crashed, making it difficult for residents to pay bills.
That order was rescinded in October 2021, but it left the city with a delinquent water bill problem that has continued to grow.
Prior to the pandemic, the city had about $750,000 in outstanding water bills. Since then, that number has grown to $2.23 million and more than half of that total — $1.3 million — is tied to accounts that are past due by 120 days or more, Woo said.
The city’s plan to fix the problem will begin with an informational letter that will be sent to ratepayers with overdue bills. It will outline their outstanding balances and also explain that they might be able to take advantage of financial aid offered through the Community Action Council.
The city also is going to take it a step further and have representatives of the Community Action Council on hand once a week at City Hall through May and June to help people get that financial aid. The city decided to bring them to City Hall because the Community Action Council location in northeast Lacey is somewhat remote, interim City Manager Rick Walk said.
“They will leave City Hall knowing they are going to receive aid,” Woo said.
Throughout the process, the city also will send out monthly late notices.
By the end of June or in early July, the city plans to separate out accounts between those that are less than four months overdue and those that are more than four months overdue.
Those that are less than four months overdue will be subject to the shutoff notice process, while those that are over four months will be sent to collections, Woo said.
And those who haven’t made an arrangement with the city or made a payment could see their water turned off the week after July 4, he said.
Councilman Lenny Greenstein asked: If someone’s water has been turned off and then they make a payment, how long does it take to get that water turned back on?
Woo said state law says “restoration within a reasonable period,” but he said the city will try to get the water back on the same day or within a 24-hour period.
Residents with questions about their utility bill or who would like to make a payment should go to the city of Lacey website and click on “utility billing.”
Delinquent water bill accounts before the pandemic
▪ Over 30 days: $357,000.
▪ Over 60 days: $113,000.
▪ Over 90 days: $21,000.
▪ Over 120 days: $262,000.
Delinquent water bill accounts as of April 12, 2023
▪ Over 30 days: $387,000.
▪ Over 60 days: $272,000.
▪ Over 90 days: $187,000.
▪ Over 120 days: $1.38 million.
Source: City of Lacey
This story was originally published April 14, 2023 at 5:00 AM.
