Tardy utility payments to towns another sign of tough economy

Gurnee Mayor Kristina Kovarik says she needs only to look at a water faucet to be reminded how some village residents are encountering tough financial times.

Kovarik voiced concern after learning late notices sent to residents for water/sewer accounts jumped 21 percent in the second quarter compared to last year.

It's not just some of the usual names on the late-payment list, either, Kovarik said. Some residents who have fallen behind on the water/sewer bills are newcomers overwhelmed by rising costs and flat paychecks, she said.

"We're trying to be sensitive because people are struggling," Kovarik said. "It's not like they're deadbeats."

And as Kovarik suspected, Gurnee isn't alone when it comes to late utility payments in this sagging economy. Naperville, Arlington Heights and St. Charles are among the suburbs with varying degrees of increased utility payment delinquency.

Private sector utilities are seeing a rise in delinquency rates as well.

Nicor Gas cited the sluggish economy as a reason bad debt is expected to increase from $53 million in 2007 to $58 million or $60 million this year, which would be a 13 percent hike on the high end. ComEd spokeswoman Pamela Anton said the number of late bill payments is up 5 percent over last year.

On the municipal end in Gurnee, there were 9,376 water/sewer bills and 907 late notices sent to residents from April to June 2007. The same period this year saw 9,361 bills and 1,099 delinquency notices.

Kovarik said the 21 percent jump in late notices is a financial concern for the village because a gap between revenue and expenditures for the water and sewer service eventually can grow. Gurnee still must send public money to its water and sewer service providers even if it doesn't receive full payments, which average $46 per month for each resident. That means if 1,000 residents don't pay, it's a $46,000 deficit for the month.

Nonetheless, the mayor said, the village is reluctant to disconnect residents from water and sewer service, and instead sets up payment plans on a case-by-case basis.

"We've never been in this situation before," Kovarik said. "We're not trained for this situation."

Figures from Naperville's finance department show an 18.5 percent hike in "courtesy" reminder late notices for utility payments in the second quarter, compared to the same April-June timeline last year. Naperville residents pay the city for water, sewer and electricity.

There were 10,710 late notices included with 176,221 bills sent by Naperville in the second quarter. Last year's second quarter showed 9,038 late notices arrived with 175,176 utility bills.

St. Charles keeps statistics a different way, but village officials say delinquent payments for water, electricity and sewer service are rising. June utility disconnections rose 10 percent, going from 111 to 122 compared to the same month last year.

Disconnections typically occur if an account is two to three months behind.

"It is higher than normal with our delinquencies," said Jill Martin, a 13-year St. Charles utility billing department employee. "There are a couple of agencies we will refer (residents) to for help."

Thomas Kuehne, finance director and treasurer for Arlington Heights, said while precise statistics were unavailable, the village has been sending an average of 1,000 late notices per billing period for water and sewer service, a roughly 11 percent increase from the usual 900.

Kuehne said Arlington Heights goes to lengths to not halt water and sewer service to those in arrears.

"We try to work with each and every person," Kuehne said. "We have payment plans. But the bottom line is, if bills can't be paid, that (disconnection) is the last alternative we have."

Finding help for late utility bill payments

•Naperville is one town that has seen a growing number of late payments for water, sewer and electric service. In the second quarter, those late notices were up 18.5 percent, to 10,710, over the same period in 2007. Other suburbs have had similar increases.

•Some suburbs, such as Arlington Heights, are willing to set up a payment plan for residents who have fallen behind on their utility bills, with decisions made on a case-by-case basis.

•Try to alert a municipality or private-sector utility if payment is anticipated to be a problem. Nicor Gas spokeswoman Annette Martinez said that's easier than seeking help when payments are a few months late.

•Consult with local social service agencies for possible assistance. One place Kane County residents can turn is Community Contacts Inc. in Elgin, which has a low-income home energy assistance program. Eligibility depends on the number of household members and combined gross income over past 30 days.

Sources: City of Naperville, Daily Herald interviews