Fillmore Municipal Code Ch. 16.04 Alternative Payment Arrangements

(1) When a user meets the three conditions of Section 16.03.090, and has documented its eligibility for an alternative payment arrangement in accordance with the process set forth in Section 16.03.100, the city shall offer the user one of the following alternative payment arrangements, as selected by the city in its sole discretion: amortization of the unpaid balance under Section 16.04.020; partial or full reduction of the unpaid balance under Section 16.04.030; or temporary deferral of payment under Section 16.04.040. The director of finance shall, in the exercise of reasonable discretion, select the most appropriate alternative payment arrangement after reviewing the information and documentation provided by the user and taking into consideration the user's financial situation and city's payment needs.

(2) The director of finance or in the director of finance's absence, the city manager, may grant a payment plan to a customer who verifies, via a city-provided form, that the customer's household income is below two hundred percent of the federal poverty line or the customer is a current recipient of the following benefits: Ca/WORKS, Ca/Fresh, general assistance, Medi-Cal, or SSI/State Supplementary Payment Program or California Special Supplemental Nutrition Program for Women, Infants and Children. The customer will be required to sign a payment plan agreement, agreeing to one of the following options:

a) Option #1: Fifteen Percent Initial Payment/Six-Month Payment Plan:

Up to six months to pay delinquent balance;

Fifteen percent of delinquent balance is required for first payment;

First payment must he paid within seven calendar days.

b) Option #2: Twenty-Five Percent Initial Payment/Eight-Month Payment Plan:

Up to eight months to pay delinquent balance;

Twenty-five percent of delinquent balance is required for first payment;

First payment must be paid within seven calendar days.

c) Option #3: Payment Extension:

Request a short, additional amount of time to pay the account balance in full;

Extends the current balance due date to the next meter read date (Two days prior to the next bill issue date).

d) Option #4: Ten Percent Initial Payment/Twelve—Month Payment Plan:

Up to twelve months to pay delinquent balance;

Ten percent of delinquent balance is required for first payment;

First payment must be paid within seven calendar days.

The city, in its sole discretion, selects the payment plans that may be offered.

(Ord. No. 19-922, § 4(Exh. A), 1-14-2020; Ord. No. 22-941, § 5, 6-16-2022)

When the city selects the amortization plan for a user pursuant to section 16.04.010, to move forward with the amortization plan, the user must enter into a written amortization plan with the city on the following terms:

(1) Term. The user shall pay the unpaid balance, with the administrative fee and interest as specified in subsection 16.04.020(2), over a period not to exceed two months, as determined by the finance director; provided, however, that the finance director, in their reasonable discretion, may apply an amortization term of longer than two months to avoid undue hardship on the user. The unpaid balance, together with the applicable administrative fee and any interest to be applied, shall be divided by the number of months in the amortization period and that amount shall be added each month to the user's ongoing monthly bills for potable water service.

(2) Administrative Fee and Interest. For any approved amortization plan, the user will be charged an administrative fee, in the amount established by the city by ordinance or resolution, representing the cost to the city of initiating and administering the amortization plan. Interest at an annual rate not to exceed six percent shall be applied to any amounts to be amortized.

(3) Compliance with Amortization Plan. Once an amortization plan is in place, the user must make payments required by the amortization plan and remain current as charges accrue in each subsequent billing period. The user may not request further amortization of any subsequent unpaid charges while paying delinquent charges pursuant to an amortization plan. If a user fails to comply with the terms of an amortization plan for sixty calendar days or more, or fails to pay the user's current service charges for sixty calendar days or more, the city may discontinue water service to the user's property at least five business days after the city posts at the user's residence a final notice of its intent to discontinue service.

(Ord. No. 19-922, § 4(Exh. A), 1-14-2020)

When a User is unable to pay for water service within the city's normal payment period and the city has confirmed that the user meets the three conditions under Section 16.03.090, the city may, if the city has selected this alternative, offer a reduction of the unpaid balance owed by the user, not to exceed thirty percent of that balance without approval of and action by the city council; provided that any such reduction is funded from a source that does not result in additional charges being imposed on other users. However, any reductions above the city manager's authority must first be approved by the city council. The proportion of any reduction shall be determined, in writing, by the user's financial need, the city's financial condition and needs and the availability of funds to offset the reduction of the User's unpaid balance.

(1) Repayment Period. The user shall pay the reduced balance by the due date determined by the finance director, which date (the "reduced payment date"), shall be at least fifteen calendar days after the effective date of the reduction of the unpaid balance.

(2) Compliance with reduced payment date. The user must also remain current in paying in full any charges that accrue in each subsequent billing period. If the user fails to pay the reduced payment amount within sixty calendar days after the reduced payment date, or fails to pay the user's current service charges for sixty calendar days or more, the city may discontinue water service to the user's property at least five business days after the city posts at the user's residence a final notice of its intent to discontinue service.

(Ord. No. 19-922, § 4(Exh. A), 1-14-2020; Ord. No. 22-941, § 6, 6-16-2022)

Any user who is unable to pay for water service within the city's normal payment period who the city has confirmed meets the three conditions under section 16.03.090 may, if city has selected this alternative, have payment of the unpaid balance temporarily deferred for a period of up to two months after the payment is due as determined by the finance director.

(1) Repayment Period. The user shall pay the unpaid balance by the deferral date (the "deferred payment date") which shall be within two months from the date the unpaid balance became delinquent; provided, however, that the finance director, in their reasonable discretion, may establish a deferred payment date beyond the two month period to avoid undue hardship on the user.

(2) Compliance with Deferred Payment Date. The user must pay the unpaid balance on or before the deferred payment date, and must remain current in paying in full any charges that accrue in each subsequent billing period. If the user fails to pay the unpaid payment amount within sixty calendar days after the deferred payment date, or fails to pay the user's current service charges for sixty calendar days or more, the city may discontinue water service to the user's property at least five business days after the city posts at the user's residence a final delinquent notice of its intent to discontinue service.

(Ord. No. 19-922, § 4(Exh. A), 1-14-2020)