Cody City Attempts To Collect
In the city of Cody, Wyoming this year, 219 utility accounts were sent out to collection agencies. Only four of the bills were from property owners. Some city council members are suggesting that the city council consider holding property owners responsible for utility costs that their renters left unpaid. A policy like that could have added $180,000 to the city budget during the past five years, and furthermore, other utility users are subsidizing those that don’t pay their bills.
Landlords are offering swift and obvious objection, asking the city council why it should be their job to pay a bill that somebody else racked up. Another plan has been proposed however, one that would require a deposit from every person opening up a utility account.
This change in policy would involve a number of modifications like a requirement that a property owner co-sign for a renter’s account. Tenants would be billed under their own account but have an open landlord account for each property. Unpaid bills would be transferred to the landlord’s account if the tenant doesn’t pay.
Deposit requirements would be raised from $150 to $200, and would be required on all accounts, regardless of their past credit history. Property owners would be notified of delinquencies, and they would be encouraged to contact the city to confirm bill payment before returning rental deposits. All property owners would have to keep utilities in their names.
Those in support of the plan assert that it is not out of line with what other cities are doing, and it is an easier and more cost efficient way to collect money. Collection agencies receive about one third of what they collect in the city, and 60 percent of bills that go to collection remain unpaid.
Whatever decision they arrive to, it should be rapid: city officials are noticing a trend toward fewer people making deposits and more accounts being sent to collection.
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