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TO: Honorable Mayor and Members of the Common Council FROM: Julie Calmes, Finance Director DATE: September 9, 2025 SUBJECT: Res 25-467 Deferred Payment Agreement Policy

BACKGROUND

The Utility Accounting division has been working with customers to establish deferred payment agreements for many years. However, it appears that these agreements have historically been guided by informal practices rather than a formal policy.  Recognizing the need for a structured approach, the Finance Department developed a draft deferred payment agreement policy in 2024.  This draft was presented at the October 2, 2024, Long Range Finance Committee meeting.  There were a few suggestions made and staff continued to analyze transactions throughout 2024 and 2025.  A revised draft, informed by this analysis, was subsequently presented to the Long Range Finance Committee on August 6, 2025.  After some very good discussion, the Long Range Finance Committee recommended that we bring the Deferred Payment Agreement Policy to the City Council for adoption with a few modifications.

ANALYSIS

In early 2024, our analysis revealed that over 100 customers were enrolled in deferred payment agreements, with no initial down payment required in most cases.  Notably, many customers requested such agreements in early fall, made minimal payments, if any, and then defaulted. This pattern enabled these customers to circumvent WI Stats. 66.069, which mandates that delinquent utility balances be transferred to real estate tax bills if unpaid by November 15th. Specifically, a 10% penalty is applied to unpaid balances as of November 1st, with these balances transitioning to real estate taxes by November 15th.  Initial delinquency notices for this Statute are mailed to the owner and occupant by October 15th each year.  The proposed deferred payment agreement policy aims to curtail the exploitation of these statutory provisions while still providing genuine support to customers who require additional time for payment.

FISCAL IMPACT

The adoption of the proposed Deferred Payment Agreement Policy is not anticipated to produce any significant financial impact. Instead, it creates a structured path for customers to reconcile overdue utility bills into a feasible payment plan, thereby deterring intentional evasion of tax roll transfers.

RECOMMENDATION

The Long Range Finance Committee and Staff recommend that the City Council adopt the attached Deferred Payment Agreement Policy. This policy is designed to enhance the integrity of the deferred payment agreement process while ensuring compliance with statutory requirements.

Attachments Res 25-467 Deferred Payment Agreement Policy Deferred Payment Agreement Form PSC 185.38 Deferred Payment Agreement

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