Chapter 9.25
LONG-TERM PAYMENT ARRANGEMENT POLICY

Sections:

9.25.010    Long-term payment arrangements.

9.25.010 Long-term payment arrangements.

(1) Authorization. Long-term payment arrangements for delinquent water service accounts are authorized for customers experiencing financial hardship. This policy shall be reviewed annually by the board of commissioners.

(2) Qualifications.

(a) An application for a long-term payment plan shall be submitted and signed by the property owner of record. Tenants may apply with the authorizing signature of the legal property owner due to CVWDC 9.05.200, Lien and foreclosure, and RCW 57.08.081.

(b) The district shall respond to the applicant within seven business days of receiving the application.

(3) Terms and Conditions.

(a) Long-term payment arrangements shall be for a maximum of up to a one-year term; provided, that the board of commissioners may approve a term of longer than one year.

(b) The eligible payment plan amount is the account balance at the time of application or lesser amount as requested by the applicant, excluding installment contract balances.

(c) Installment contracts on the property shall be excluded from the long-term payment arrangement.

(d) Long-term payment plan payments shall be in addition to the regularly accrued charges for the account. Subsequent billings are due by their regularly scheduled due date.

(e) Long-term payment plan balances shall be due and payable in full upon account termination.

(f) The district shall note on escrow estimates stating that there is a payment plan balance of $X.XX included in the estimate.

(g) Long-term payment plans exceeding a one-year term shall be recorded at the county at the property owner’s expense.

(4) Interest Rate.

(a) The interest rate to be charged by the district shall be the prime lending rate of the district’s bank plus four percent per annum.

(b) Late penalties and interest shall be assessed on the payment plan unless precluded by emergency proclamation.

(5) Payments.

(a) Payments shall be due by the tenth of each month.

(i) Should the tenth fall on a weekend or district observed holiday, payments are due by the next regular business day.

(b) The first payment plan due date shall be by the tenth of the month following the district’s acceptance of the payment plan application.

(c) The district shall not send monthly reminders to payment plan recipients.

(6) Default. Default on a payment plan agreement may result in the district discontinuing utility service. Restoration of service shall not occur until the unpaid balance plus any disconnect and reconnect fees are paid in full, unless prohibited by emergency proclamation. District may file a lien against the property receiving the utility service pursuant to RCW 57.08.081, unless precluded by an emergency proclamation. [Res. 2024-1-2 § 1; Res. 2020-7-3 § 1.]