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Posted on: June 30, 2020

Lakehaven Delinquent Account Payment Plan (Resolution No. 2020-1338)

Delinquent Account Plan

A. In order to provide District customers with reasonable opportunities to cure delinquent accounts that have arisen out of the economic hardships caused by the Covid-19 Emergency, it is necessary that the District establish measures to provide financial relief from delinquent water and/or sewer bills. Accordingly, the following measures will be implemented, effective July 1, 2020, regarding all delinquent accounts:

1. No water service shall be terminated for lack of payment during the period of the Governor’s suspension of the authority to terminate service.

2. No penalties or interest shall be added to delinquent balances during the period of the Governor’s suspension of the authority to apply penalties to delinquent accounts.

3. Account Balance - <$200 - Four (4) months to pay arrearage with no interest charged on remaining balance.

4. Account Balance - $200 to <$400 - Six (6) months to pay arrearage with no interest charged on remaining balance.

5. Account Balance - $400 to $600 - Nine (9) months to pay arrearage with no interest on remaining balance.

6. Account Balance - >$600 - One (1) year to pay arrearage with no interest on remaining balance.

7. A payment plan entered into during the pendency of the Governor’s suspension of the authority to terminate service shall be deemed an Interim Payment Plan.

8. Customers on Interim Payment plans will be required to pay at least 50% of current bills accrued during the period up until the Governor ends the restrictions.

9. Customers requesting Interim Payment plans will be asked to sign a payment plan agreement that will outline the terms of the payment plan. On property occupied by a tenant, payment plans may be signed by the tenant, with a copy provided to the property owner along with notice that all charges for water and sewer service shall remain with the property.

10. Unless circumstances require otherwise, Interim Plans shall require the customer to make level payments during the repayment period sufficient to pay the entire balance within the duration of the payment plan.  When restrictions on termination of service and applying penalties on delinquent accounts are lifted, customers remaining current on payments under the plan and who pay at least 50% of bills that accrue up to the lifting of the restrictions, will be eligible to enter a new payment plan, referred to as the Final Payment Plan, for all amounts then delinquent.  The length of the Final Payment Plan will be based on the schedules set forth in Sections 1-4 above. No interest shall accrue as long as payments remain current.

11. Customers who do not remain current on the Interim Plan payments, including payments on current bills, will be required to pay the entire balance within 90 days of the date the Governor’s restrictions on service terminations expire.  Interest and penalties will thereafter apply and service may be terminated if full payment is not made within the 90-day period.

12. Customers with delinquencies as of July 1, 2020 who fail or refuse to enter into an Interim Plan by August 15, 2020, will be required to pay the full amount of the delinquent balance within one month of the date the Governor’s restriction on service termination expires and interest and penalties shall thereafter accrue at the rate established under District resolution. Such accounts shall be subject to regular collection processes, including termination of service.

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