HomeMy WebLinkAboutWater Rate Collections Policy Cape Breton Regional Municipality
WATER RATE COLLECTIONS POLICY
STATEMENT:
The collection of Water Rates levied by the Municipal Unit on a regular and timely
basis is an integral component of the financial administration picture. The Nova
Scotia Utility and Review Board approved Schedule of Rule and Regulations
make certain provisions, which clarify the rights and limitations for the
Municipality to perform the collection operation. The role of this policy is to
define the direction of Council in concert with legislative authority and
responsibility thus enabling administrators to complete their task without
constantly seeking authorization from Council. Under certain conditions it may be
necessary to involve council, however, the intent of the policy is to minimize these
occurrences to policy review or oddities, which are not covered by the policy. As
with all policies it will be important for periodic review to ensure compliance with
changing legislation and Council direction.
Collection Procedure:
1. Arrears notices will be sent to customers whose accounts are 120 days in
arrears. An account is in arrears once the due date of the invoice has passed.
2. Notice of disconnection will be issued to customers whose accounts are 150
days in arrears. This notice will give the customer 30 days to pay or make
arrangements to pay. (See Satisfactory Payment Methods)
3. When a customer fails to act on the notice of disconnection within the
prescribed time, a notice will be posted on the property within 5 days of the
expiration of the Notice of Disconnection. This notice will further advise
the customer that their service will be disconnected within three (3) days.
The water valve on the property will also be marked for location sometime
during the collection process.
4. When a customer has not acted as a result of the property posting, the
account remains unsettled in accordance with the Satisfactory Payments
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Method of this policy, and the three (3) days have passed (see #3 above),
the water service will be disconnected for non payment. (For terms of re-
connection see Section #3 — Satisfactory Payment Arrangements)
5. For the purpose of administration of requirements covering water rate
collection, the Manager of Financial Services shall be the administrator of
the policy and perform the duties of the Treasurer or Director of Finance
under the policy.
6. In cases where individuals or companies supply goods or services to the
Regional Municipality no payment of same shall be carried out if the
individual or company is in arrears of water rates. The Municipality shall
have the right to control payment according to water account situation.
(This clause also forms part of the Procurement Policy of the Municipality.)
Satisfactory Payment Method:
(1) Active Services: Arrangement whereby residential account arrears and
current rates (for future arrangement period) are paid in full or by installments
not exceeding two years from date of agreement, or any combination thereof.
Payment shall be by pre-authorized bank debit unless otherwise approved by
the policy administrator.
(2) Active Services: Arrangements whereby commercial account arrears and
current rates (for future arrangement period) are paid in full or by installments
not exceeding one year from date of agreement, or any combination thereof.
Payment shall be by pre-authorized bank debit unless otherwise approved by
the policy administrator.
(3) Default of Payment Arrangement: A customer shall be granted one reprieve
for failure to adhere to payment arrangements. Any additional failure will
result disconnection of service (see Section#4 Collection procedure). Where a
customer has previously been disconnected for non payment under this policy
and a subsequent arrangement had been made (see-Section#4 Disconnected
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Services) and they have failed this subsequent arrangement, service will be re-
connected only upon settlement in full of the account.
(4) Disconnected Services: When water service has been disconnected for non
payment in accordance with this policy, service will be reconnected only after
the customer has made a minimum payment of 25% of the account balance
and signed for pre-authorized bank debit for the remainder of the balance
covering a period not exceeding 18 months.
(5) Special Circumstances: (Financial Position of customer makes (1) above
unmanageable)
3.1) Residential—Income and eligibility guidelines for application of this Section
shall be the same as for the CBRM Low Income Tax Exemption Policy.
Qualifying Criteria:
a) CBRM shall require the customer to provide proof of income in the
form of income tax returns or other documents deemed to be acceptable
by the Financial Services Department. In addition, records of
expenditures related to the property (i.e. power, oil etc.) may also be
requested.
b) Pre-authorized payments shall be the only means of payment acceptable
under this arrangement unless otherwise approved by the administrator
of the policy.
c) The maximum term of an arrangement shall be at the discretion of the
Management of the Financial Services Department, but shall not exceed
Three (3) Years.
Procedure where Qualifying Criteria has been met:
a) Effective the month of the arrangement no further interest charges shall
be applied until the term expires.
b) Where accumulated interest on an account is in excess of 10% of the
total water rates owing, aone-time interest adjustment may be made
reducing the interest balance to NIL. This adjustment will be done
annually in March of each year during the term of the arrangement. The
amount of the adjustment will be pro-rated according to the amount paid
over the previous 12 months.
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Conditions:
a) All Qualifying Criteria have to be met before arrangements can be
accepted under this section.
b) Failure to keep the terms of the arrangements under this policy will
result in the disconnection of water service following issue of a three-
day notice (see collection procedure Section #4). Payment in full will be
required to settle the account prior to disconnection or in order to have
service restored.
c) Arrangements under this section may be applied only once to an account
for any one customer.
3.2) Commercial— Special Circumstances: (Financial Position of Customer makes
(2) above unmanageable)
Where a Commercial Property has been listed for disconnection and the
commercial customer can substantiate their inability to comply with Section 2 of
the policy, the management of the Financial Services Department has the authority
to adjust interest upon full settlement of the principal water balance. Such practice
will only be done after the Financial Services Department have done a financial
review and due diligence to ensure the viability of the business will require such
action.
Approved by Council: February 17, 2004
Amended by Council: September 27, 2004, June 26, 2018
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