Saco sees longer list of unpaid sewer bills - Sept. 8, 2011

By David Harry
Staff Writer

Unpaid user fees at the Saco Wastewater Department have led to a sharp increase in foreclosures by the department.
Sue Sexton, an administrative assistant who oversees billing for the Saco Wastewater Department, said about two dozen property owners were served with foreclosure notices last month, more than she has seen served at anytime in her 23 years at the wastewater department.
She estimated the department usually forecloses on one or two properties annually.
“It is really hard, I feel their pain,” Sexton said. “But plenty of time has been afforded for them to pay their bills.”
Sexton said the properties in question are almost entirely residential and unpaid balances are at least 2 1/2 years old.
The foreclosure notices could allow the city to seize a property, as can be done for unpaid property taxes, but Saco Finance Director Cheryl Fournier said the prospect was unlikely.
“That is not the town’s stand. We try to do anything not to make it happen,” Fournier said.
Sexton said the foreclosure notices can cause other complications for property owners.
To have Saco city councilors approve a quit claim releasing the property from foreclosure, property owners will have to pay the unpaid sewer bill and any other balances owed to the city for property taxes or fees, plus a $20 processing fee for the quit claim, Sexton said.
Using the current rate of $4.20 for every 750 gallons of wastewater used, Sexton said the average sewer bill for a family of four averages about $350 annually. A property owner has nine months to pay sewer fees from receipt of the annual notice and bills are updated quarterly, Sexton said.
If there is an unpaid balance after nine months, a notice is sent to the property owner, Sexton said.
The department can place a lien on any unpaid balance against the property for up to a year and allow it to collect its share if the property is sold. The lien is in effect for 18 months and notices of possible foreclosure are sent out 30 days before the lien expires, Sexton said.
Wastewater use is measured through meters administered by Biddeford and Saco Water Co. Sexton said some property owners are assessed flat rates for use and some use monthly accounts, but in general, the nearly 4,900 Saco Wastewater Department accounts are billed annually on a rate that can increase or decrease as the department budget demands.
Fournier said the foreclosure notices are necessary to ensure the city is paid even if city officials do not actively pursue seizing a property.

Staff Writer David Harry can be reached at 282-4337, ext. 213.

 

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