Utility program raises concerns
City to screen credit history, Social Security numbers
Yuma will start screening residents who apply for water and sewer services to reduce unpaid bills, increase collection and catch scammers who “work the system.” The new system verifies applicant information upfront, including credit history and Social Security information.
However, a couple of council members raised concerns with the new system. Councilwoman Leslie McClendon fears that residents who have gone through hard times will be denied water and sewer services.
Councilman Edward Thomas feels uneasy about allowing residents without a valid Social Security number to receive city services. City Administrator Greg Wilkinson stressed that he did not want the city’s employees to become immigration enforcers.
During the Tuesday work session, Lisa Marlin, director of financial services, introduced the council to the ONLINE Utility Exchange software program, which verifies customer information and recommends deposits. The system is used nationally as a municipal and utility reporting agency.
Currently, Yuma only requires a valid ID when a resident requests utility services. It does not ask for proof that the person lives at that address. Deposits also do not cover at least one month. The deposit is $50 for a rental with water and sewer, $30 for a rental with water only, and no deposit for homeowners.
The Social Security verification will say whether the applicant’s information is a good match, not a match, or matches another name. It will also say if the info matches a deceased person’s name or someone under the age of 18.
Based on credit history, the program will give an application a green light that requires no deposit, a yellow light that requires a month deposit, or a red light that requires a twomonth deposit.
The system will show unpaid bills owed to other utilities and “rewards customers with good credit history” by not requiring them to pay a deposit, Marlin said.
In addition, ONLINE Utility Exchange will become the city’s collection agency. The city currently has 1,100 delinquent accounts every year, but the city is unable to collect debts because it doesn’t verify Social Security numbers, so collection agencies will not take on the city’s business. In addition, Marlin said, if customers move to another participating utility, the Yuma debt will show on the report and they are more apt to take care of the bill.
The final new deposit amounts have not been set, but the city is currently considering $100 for a month and $200 for two months. After a year of on-time payments, the city will refund deposits, and if an account is canceled, deposits will be applied to the last bill.
McClendon asked whether the city will be denying residents the opportunity to hook up to city water if their report comes back “not so great.”
“We are not going to deny that. We are simply collecting the information as much as we can and making a decision on how much they will pay for a deposit,” Marlin said.
McClendon asked whether residents will be able to make deposit payments. Marlin said it would be required upfront. “If a resident cannot come up with a deposit upfront, they will not turn on their water?” McClendon asked. Yes, Wilkinson said, noting that the city sees repeat offenders who open an account and then they don’t pay the bill. After two months, when they are cut off, a family member opens another account and they don’t pay again, knowing they have two months, and they repeat this routine “time after time.”
McClendon asked about a young person who doesn’t have credit history. Wilkinson replied that only those who owe money or have a history of not paying bills will come up “red.”
“I get what you’re doing. I’m not quite sure I can agree with it,” McClendon said. “I cannot see having a customer or resident who is without water.” She called the system “cut and dry” and voiced concerns that it doesn’t take into consideration “what’s happening in the scheme of everything … I guess I’m a little shocked
we’re going in this direction.”
Wilkinson noted that the city already has a program that helps people struggling to pay their bills and employees “bend over backwards” to help these residents. The new system is to stop those people who “come in and work the system over and over again.”
McClendon requested a follow-up report “because
I’m having a hard time with that so I want to watch that and see how that is progressing.”
The city will pay the utility exchange a “small” monthly fee and then by application, but Marlin said the city expects to recoup that through collections.
Thomas asked what happens if the Social Security number doesn’t match. Marlin said the city will try to get a matching number but it won’t deny services. Wilkinson added that if
someone doesn’t have a valid number, “we aren’t going to have our customer service be immigration. We’ll just collect two months’ deposit and go on our way.”
Thomas said he didn’t agree with that, noting that if the number doesn’t match, “that’s a serious red flag.” Wilkinson replied: “I don’t want to get our customer service in the habit of being immigration enforcement.” He added that city staff has to have internal
discussions to see how the city will handle those situations.
Deputy Mayor Gary Knight said he through the system was “great” since the water and sewer services are enterprise funds and should pay for themselves.
Councilman Mike Shelton said he felt comfortable that the program met the needs of a low-income residents and acknowledged that the city needs to watch out for scam artists.