Cody City Attempts To Collect

In the city of Cody, Wyoming, 219 utility accounts were sent for collection. Only four of the bills belonged to property owners. Some are suggesting that the city council consider holding property owners responsible for utility costs that their renters left unpaid. A policy like that could have added $180,000 to the city budget during the past five years, and furthermore, other utility users are subsidizing those that don’t pay their bills.

Landlords are offering rapid and obvious objection, begging the question why it should be their job to pay a bill that someone else racked up. Another plan has been proposed however, one that would require a deposit from every person opening up a utility account.

This change in policy would involve a number of modifications like a requirement that a property owner co-sign for a renter’s account. Tenants would be billed under their own account but have an open landlord account for each property. Unpaid bills would be transferred to the landlord’s account if the tenant doesn’t pay.

Deposit requirements would go from $150 to $200, and would be necessary for all accounts, regardless of their past credit history. Property owners would be notified of delinquencies, and they would be encouraged to contact the city to see if the bill got paid before returning rental deposits. All property owners would have to keep utilities in their names.

Supporters of the plan claim that it isn’t out of line with what other cities are doing, and it is a simpler and more cost efficient way to collect money. Collection agencies receive about one third of what they collect in the city, and 60 percent of bills that go to collection remain unpaid.

Whatever decision they come to, it should be quick: city officials are seeing a trend toward fewer people making deposits and more accounts being sent to collection.

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