Officials say the city is having difficulties collecting sewer, landfill, and other fees that Kentucky American Water dropped from its bills in 2012.
$4.3 million – that’s how much the Lexington Herald-Leader reports the city’s billing service, LEXserve, has logged in past-due bills. Compared to Kentucky American Water’s collection rate in May two years ago, the city is behind by 3 percent. Overall, Lexington is collecting about $1.8 million less annually.
Water company officials stopped collecting the fees in 2012 because they said they were too confusing for customers.
The Urban County Council's Environmental Quality Committee heard from Randy Cook, director of revenue, during a Tuesday meeting. He said the city is working to boost collections, in part by turning off water for customers with sizeable overdue sewer and landfill bills. Those customers will be given a 10-day warning and asked to pay the minimum of all fees or agree to a payment plan before service is turned back on.