Akron unveiled a new policy Monday to provide some financial relief to utility customers socked with high, unexpected bills caused by everything from toilet leaks to clerical errors.
The policy comes at the same time that City Council is debating whether to put a charter amendment on the ballot or enact an ordinance to deal with the issue.
The city administration believes its policy, as opposed to a new law or asking voters to decide, is the more prudent move.
“We feel this is a fair and responsible policy,” James Hardy, chief of staff for Mayor Dan Horrigan, told the council.
The policy addresses water, sewer and trash bills.
In cases of burst water pipes and toilet leaks, the city will forgive 100 percent of the excess sewer charge and allow for interest-free payments on water fees for four years.
It also forgives 100 percent of both water and sewer charges in cases of unknown, underground leaks.
Last year, the Akron Beacon Journal shared the story of a 90-year-old man who was soaked with a $1,542 water bill because of a running toilet in his basement.
Toilet leaks are the most common problem, the city said.
Customers are eligible for the relief only once for a burst pipe, and once every 36 months for toilet leaks. There is no limit on the underground leaks.
The policy also limits the burst water pipe forgiveness to a single account, meaning landlords and others with multiple properties are eligible only once.
Nearly 47 percent of city residential properties are rentals, according to the latest statistics available from the U.S. Census Bureau.
City officials said they wanted to incentivize property owners to maintain their houses and businesses.
Anyone with multiple housing code violations or delinquent accounts are not eligible for any relief.
The city has about 85,000 utility customers.
The policy also addresses cases when the city makes a billing error.
The Akron Beacon Journal wrote last month about the city not billing — in some cases for years — 56 property owners for trash service.
Those customers were hit with unexpected bills ranging from $107 to $5,418.
The new policy says the city will require water and sewer customers to pay up to $1,500 or the unbilled amount, whichever is less.
It also will allow customers to make interest-free payments for four years.
In the cases of trash bills, the city will require customers to pay 50 percent of the amount due, up to eight years worth, or 25 percent if the customer is eligible for the Home Energy Assistance Program (HEAP) or the Homestead exemption.
The policy stems from the Akron Beacon Journal story, Hardy said.
Customers are still able to contest the outcome, he added.
Councilmen Bruce Kilby and Zack Milkovich have been pushing the administration and their fellow council members for either an ordinance or charter amendment to address the issue.
They said they appreciated the administration’s policy but still would like to see an ordinance.
Their proposal would cap customers’ sewer bills to 150 percent of the average of the previous 12 months.
The administration, though, said that was too broad and would cost the city $6.4 million in revenue a year — a figure that Kilby disputed.
Hardy said the city expects to lose $167,600 in revenue a year with the policy.
He added that it is as “abuse-proof as possible.”
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com. Follow him on Twitter at @armonrickABJ.