18706_Authority_Oct

30 The Authority | October 2025 This isn't just administrative detail—customer classification changes your legal obligations and notice requirements. Consider the advantages and disadvantages of a “property owner only” account policy. Document everything. Confirm that all procedural steps have been followed, including physical posting requirements. Document all conversations with the customer so that there is a clear paper trail of all authority collection activities. Even if a customer clearly owes money, skipping procedures can possibly expose your authority to litigation or public/media scrutiny. The debt might be valid, but utilizing an improper process can still pose problems for the authority. The Notice Game: Your Step-by- Step Process Pennsylvania law requires a specific sequence of notices before you can legally shut off service. Think of it as a formal dance—every step matters. Bearing in mind the specific legal requirements of the various laws discussed above, generally, the process looks something like this: Step 1: The Bill This seems obvious, but proper billing is your foundation. Make sure it is accurate and understandable. Step 2: 30-Day Delinquency Notice Once the account is past due, send a formal notice warning of the outstanding balance. This starts the clock ticking. Step 3: 10-Day Shut-off Notice If payment does not arrive, send a final notice identifying the earliest possible termination date. Being more specific about the date can avoid potential confusion. Step 4: Physical Posting Place a visible notice on the property itself as a final warning as required by statute. This can be accomplished by authority employees or constables. Payment Plans: The Win-Win Alternative One possible alternative that can be considered if a customer contacts you after receiving a delinquency and/ or termination notice is a payment plan. Payment plans can be used to save the additional fees and costs associated with a water termination from being passed on to a customer who is already in arrears and can be structured to both protect the authority’s financial interests while providing a reasonable option to a delinquent customer. Payment plans are customizable, but some features to consider include: (1) upfront partial payment to show good faith; (2) clear duration limits; (3) requirement that customers to stay current on new bills while paying off old debt and (4) specific consequences for defaults. It may also make sense to institute eligibility restrictions. For example, you might exclude customers with a history of bounced checks or failed previous payment plans. Just make sure your policies are clearly stated and consistently applied. The key is avoiding ambiguity. Vague terms lead to disputes, and disputes lead to inconsistent enforcement - exactly what you want to avoid. Proactive Policy Considerations Accounts involving rental properties carry additional challenges. For example, in addition to the different legal requirements triggered depending upon the type of service at issue and whether the customer is a property owner, landlord or tenant, there are some proactive policies an authority can consider to address common recurring issue such as: (1) split billing scenarios, where water is billed to the tenant and sewer to the landlord; (2) duplexes with a single meter; (3) high tenant turnover and billing lags; (4) medical exemption claims and (5) property transfers that do not follow proper procedures. Not every bill will be collectable in these circumstances, however recovery success can be greatly enhanced with clear and concise rules and regulations that try to address some of these scenarios. In this regard, policies addressing the following should be considered: 1. Who can be account holders – property owners only or tenants and property owners; 2. Clear “no lien” letters requirements and cooperation with the municipality to ensure the authority is given notice of property transfers; 3. Time of sale requirements to eliminate single meters to multiple residences; and 4. Medical exemption policies requiring physician renewal every thirty (30) days. When Shut-Off Isn't Possible: Alternative Collection Tools In some cases, physical or legal limitations make water termination impractical or even impossible. Authorities may be unable to access shut-off valves due to infrastructure Continued on page 63. ... no sIngle " water shut - off law " In p ennsylvanIa . I nstead , there Is a web of overlappIng statutes that apply dIfferently dependIng on your specIfIc sItuatIon .