The Free Press, Mankato, MN

Local News

February 8, 2010

Mankato utility reform approved

By Dan Linehan The Free Press

MANKATO — Mankato will use incentives and regulation in a reform of how water utility bills are paid.

The changes, approved Monday night by a unanimous City Council, mandate that water bills be transferred to the name of property owners, not renters. The city expects to save about $90,000 by reducing turnover in bill payments and shutoffs for nonpayment.

The transition to owner-paid bills will happen gradually as new tenants enter their properties. Existing tenants will be unaffected.

There will also be a new late fee of $5 plus 1 percent of the unpaid balance. It’ll be levied if there’s an unpaid balance on an account when a new bill is generated. In practice, that will mean people have a grace period of about a month.

Mankato City Manager Pat Hentges estimated 10 percent of the city’s water bills currently paid by renters will be put into the property owner’s name.

The incentive approved along with the regulation offers all water customers with the option to save up to $3 monthly by moving to paperless, electronic billing. The savings are approximately what the city will save by moving to the online system.

One person spoke at a public hearing. Tom Paradis asked if the property owner can have water turned off if renters don’t pay the water bill. He was told they can.

While the water bill will be in owners’ names, it’s likely many will simply include the water cost in their renters’ bills. Hentges said most large apartment complexes already pay water bills for their renters.

Councilman Charlie Hurd said after the meeting it’ll be interesting to see whether owners pass on the exact amount of the bill or a set amount every month.

If renters don’t see the bill “there’s certainly a concern they’re going to use more water,” Hurd said. But if landlords pass on a set amount every month they’re likelier to invest in low-volume showers and toilets, he said.

This spring, water utility bills will include the current month’s usage compared to the average of the past three months to help consumers monitor trends.

The city’s water utility is run as a separate enterprise, so any savings won’t affect property taxes but will limit rate increases.

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