County defers water arrears change until March
Norfolk extends timetable for adjustment
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Norfolk County continues to fine-tune its management of unpaid water bills.
Last week, Norfolk council approved a plan that will see water arrears of more than 60 days applied against the property owner’s taxes. This includes arrears accrued by tenants in rental units.
Until recently, Norfolk’s policy was to turn the debt over to a collection agency. However, Norfolk treasury staff recommended a new tack recently after water arrears this year spiked to more than $770,000.
Staff initially suggested introducing the reform Jan. 1, 2021. However, after consulting the county’s billing agency – ERTH Solutions – staff recommends an implementation date of mid-March of next year.
In a note to Norfolk council, tax collector Sue Boughner said Jan. 1 “may be too aggressive to successfully implement a change of this magnitude.
“Consideration must be given to a more achievable implementation date that allows time to prepare policy, alter billing processes, communicate to affected parties, and respond to questions and feedback.”
There are other reasons to recommend mid-March.
Not only does this give fair warning to all concerned, Norfolk sends out its first interim tax bills at this time. Boughner said this will be an opportune moment to include written notice of the change to affected property owners.
Norfolk’s new approach will be unpopular with landlords. The implementation date is next spring but the policy has already encountered turbulence.
“I wish to advise your worship and Norfolk council that this idea will only cause more chaos for the residents of Norfolk County and our housing industry,” George Santos, of Simcoe, said in a recent email to council.
“I did not sign up to give our tenants or our citizens a free ride paying other people’s utilities.”
Another property owner who describes herself as a “Fair landlord and taxpayer” – Joan Pringle – advised Norfolk to beware of unintended consequences.
If Norfolk shifts responsibility from tenants to landlords, Pringle said property owners will be tempted to get out of the affordable housing business.
“Why would anyone bother to pay their water-sewage bill if they know, by default, the landlord will pay?” Pringle says in a recent note to the county. “Low-income rental homes will be lost and sold to investors who are currently buying up properties at our low interest rates.
“Interesting enough, I must give my tenants 90-days written notice of change in our agreement and you are just planning to shove these changes through without any regard to your tax-paying landlords.
“We are residents of this county too. It is extremely unjust for you to look for a solution by making landlords pay for your lack of ability to collect water and sewage fees from the people who used them and with whom you have a contract. Shame.”
In her update, Boughner notes that the Municipal Act empowers municipalities to apply water and sewer arrears against property taxes. Boughner also details steps landlords can take to ensure the cost of water and sewer is ultimately borne by tenants.
Water arrears in Norfolk totaled $386,000 at the end of 2018 and $457,000 at the end of 2019. Under the current format, arrears deemed uncollectable are charged to all users of the municipal water and sewer system.
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