Nevada County Picayune and Gurdon Times Newspaper Archive

Collection Fee Examined By Department

Deadbeats on the Gurdon Water and Sewer Department rolls may soon be taken to small claims court.

Monday night, the Gurdon Water and Sewer Commission discussed filing small claims suits against those customers who have outstanding debts of more than $100.

However, it will cost the department $35 per case to file. Because of the cost involved for the department, the issue will be further researched and addressed at the July meeting.

Harold Hurst, department superintendent, said a minimum amount owed should be set before a suit is filed. In addition, the department needs to decide whether or not to garnish the wages of those owing bills who are working.

The commission also discussed adding a $10 collection charge on bills when department members have to go to a user's home to collect payment. This $10 would be on top of the amount of the bill, along with the 10 percent late penalty.

"If we cut off (a customer's water)," Hurst said, "there's a $25 reconnect fee. It's only fair if we go out (to collect a bill) we collect a $10 fee."

Commissioner Bill Dulin said it's not the department's place to chase down people who don't pay their bills.

Carroll Coston said the department needs to check with an attorney concerning the legality of a collection fee, though Arkla Gas and Entergy, formerly AP&L, have such fees in place already. Then, he said, all customers need to be notified before the collection fee is begun.

Coston also suggested suing those owing more than $100, or possibly turning them over to a collection agency.

Hurst will be checking with other cities to see how they're handling the overdue bill situation and report to the commission next month.

At this point of the year, some $5,200 is owed to the department in bad debts. A collection agency could charge as much as half of this amount, but as Hurst said, half of $5,200 is better than none at all.

Hurst also discussed a possible budget for the department for 1996-97. However, without all the figures from the auditors, he was unable to present a formal financial statement for the commission.

Hurst said the department took in $192,000 this year, while anticipating $190,000 for water. The sewer revenue was $267,000 for 1995-96, and will be left at this amount for the next fiscal year.

Penalties collected amounted to $14,000, but will most likely be budgeted at $12,000 for the coming year.

A total of $9,000 was earned in connection fees, but Hurst suggested dropping this back to $5,000 for budgetary reasons.

Interest income for the department was $11,000, and could be budgeted at $10,000 next year.

Miscellaneous income, Hurst said, is always a "shot in the dark." He said if there are legitimate reasons for the budget being out of line it can be adjusted later on based on the numbers coming into the department.

Fees for garbage collection, he said, shouldn't vary much, and will be left at $5,000.

However, if the city annexes property into its corporate limits, Hurst added, the garbage collection fees will go up.

The city is looking at annexing four areas into Gurdon's city limits, including the new Gurdon High School.

For work done outside the city limits, Hurst proposed budgeting $1,500 for water and $2,000 for sewer services.

Overall, the department had projected revenues of $449,000 and took in $552,000.

"It's been an unusual year," he said. "But I'd rather guess low than high on budgets."

Looking at projected expenses, Hurst suggested leaving the office salaries at $17,500, and the rest of the department at $83,500. Last year, he said, the department was below budget on salaries.

Maintenance and repair on the water lines is anticipated to be $13,000, while $15,000 is expected for sewer expenses.

Hurst said the majority of expenses could come from the new treatment plant.

Outside water service expenses are estimated to be $4,000.

Hurst said depreciation on the equipment can't be figured at this time because the auditors haven't released the figures yet.

Utility expenses could vary considerably next year should the rural water project be in place.

If the project is constructed during this fiscal year, Hurst said, there will be more equipment added, which, in turn, will increase the amount of utilities used.

Hurst suggested budgeting $46,000 for utilities at this time and waiting to see what happens with the water project.

On the other hand, he said, while the utilities will cost more, there will be additional revenues coming in as well to balance these expenses out.

For the most part, he said, office equipment and postage, vehicle expenses, payroll taxes, insurance and meter use taxes should be pretty much the same.

"We should have the figures we need (from the auditors) by next month," he said. Once these figures are in hand, the commission can approve a formal budget for the coming fiscal year.

In other business, Hurst said more people have signed up for the rural water project, bringing the total customer count to about 360. Originally, 409 customers were sought to keep rates manageable.

He said 130 easements have been signed and turned in already, but it's a slow process. There are some residents who would be affected by the project who simply refuse to sign easements, while others have questions they want answered before they sign.

There has been a slight snag in the city's acquiring the property on Red Springs Road, for a pumping station.

Hurst said Southwestern Bell Telephone wants all the "i's" dotted and "t's" crossed before agreeing to sell the land. City attorney Eric Hughes, Hurst said, has assured him the city will get the property.