HomeMy WebLinkAboutMemo - Mail Packet - 3/2/2021 - Memorandum From Lisa Rosintoski And Lance Smith Re: Utility Delinquent Accounts & Financial Assistance Monthly UpdateUtilities
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222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE:February 25, 2021
TO:Mayor Troxell and Councilmembers
FROM:Lisa Rosintoski, Customer Connections Deputy Director
Lance Smith, Utilities Strategic Finance Director
THROUGH:Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE:Utility Delinquent Accounts & Financial Assistance Monthly Update
Bottom Line: As our community continues to navigate the effects of the COVID-19 pandemic,
Fort Collins Utilities has not disconnected utility services due to non-payment since March 2020
and has not confirmed a date to reinstate disconnects. In accordance with the current Governor
moratorium, we are not charging late or reconnection fees to delinquent accounts. Payments for
utility services are essential to continue delivering reliable and high-quality electric, water,
wastewater, and stormwater services. Utilities staff plans to provide an update to City Council
on utility delinquencies the fourth Thursday of each month through June 2021.
Delinquent Account Status Including Revenue:
The number of delinquent accounts fluctuates each month. The graph above is an example of the
utilities uncollected past-due revenue related to the increase in delinquent accounts. The graph
shows that the pandemic has caused hardship for many of our utility customers, and our
delinquent account numbers have increased significantly, also impacting utility revenue. Utilities
typically writes-off about $300,000-600,000 each year in uncollected revenue as bad debt due to
delinquency. However, due to the City lien ordinance Utilities may collect the debt once the
property is sold.
Outreach and Financial Assistance Provided to Delinquent Accounts:
In 2020 through CARES Act funding and the Payment Assistance Fund, Utilities has been able
to provide $900,000 of financial assistance to help customers who have struggled to pay their
utility bills. Outreach has included mailings, emails, and phone calls to advise them of the
available funding.
Each delinquent account is receiving a monthly notice encouraging them to contact Utilities
immediately and informing them of their options:
Pay your bill.
Set up a payment arrangement.
Utilize the Payment Assistance Fund
Our hope is that as additional financial assistance becomes available the notice will be updated.
Financial Assistance Being Considered:
Currently, Utilities is waiting on crucial decisions to be made regarding state and federal
stimulus packages, such as financial assistance for delinquent accounts could come from utility-
led programs and third-party nonprofit organizations. The biggest unknown at this time is
Biden’s American Rescue Plan and financial assistance that will be available for utility
assistance. Below is a summary of financial assistance.
$119,397
$86,751
$323,591
$44,727
$547,647
$28,262
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2018 2019 2020 2021 ytd
Financial Assistance
PAF CARES
Utility Led Financial Assistance
Payment Assistance Fund
(unclaimed funds only)
$231,745 Council would need to change City Code to
redistribute funds, which could consist of
modifying Code to allow the Chief Financial
Officer’s regulations to manage. Donations
from public would not be used for this
purpose.
Platte River Power Authority Gift $468,941 City Manager’s Office determining allocation
and emergency declaration orders to support
distribution.
Remaining CARES Act funding $270,000 As of 2/16/21
Third Party, Non-profit Led Financial Assistance
CARES Act
Energy Outreach Colorado
(La Familia, Catholic
Charities, Discover
Goodwill, Colorado State
University)
$2.5M
Statewide
Funds for utility one time assistance, $1k per fuel
source, no LEAP requirement at this time,
customer needs to have an electric account, dollars
need to be spent by 6/3/21
CARES 2.0
Neighbor to Neighbor
(working with other
nonprofits, more details to
come)
$10.7M
Larimer
County
Funds for rent and utility assistance were
provided to Larimer County, dollars need to be
spent by the end of 2021, distribution expected to
begin mid-March
What Are Other Utilities Doing?
As we look to our utility colleagues to see how they are handling delinquent accounts and
support their administration remains closely related to ours. However, we have learned most
utilities have resumed disconnects including Xcel, Black Hills Energy, the City of Loveland,
Colorado Springs Utilities, the City of Fountain, and the Town of Estes Park. Like us, the City of
Longmont has not resumed disconnections in hopes of more funding to provide financial
assistance.
CC: Lori Clements, Utilities Customer Care & Technology Manager
Gretchen Stanford, Utilities Community Engagement Manager