HomeMy Public PortalAboutADM-135_Water & Sewer Liens Policy_Effective 03-31-2021
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
WATER AND SEWER
LIENS/DISCONTINUANCE OF
SERVICE/ABATEMENTS
Policy Number Effective Date Last Revision Page No.
ADM-135 3/31/2021 Page 1 of 4
Approved by:
Section 1.0: Purpose
This policy details the process of when liens will be placed on properties for past
due water and sewer payments. This policy also details the procedures regarding
discontinuance of water service for past due bills. This policy addresses payment
plans for past due water and sewer bills.
Section 2.0: Scope
This policy applies to the Water and Sewer Divisions of the Department of Public
Works, the Finance Department, the City Clerkâs Office and Human Services
Department.
Section 3.0: Definitions
Abatement- The elimination or reduction of a water or sewer bill for
service, fee or assessment.
Section 4.0: Policy Detail
This policy is not intended to replicate the provisions that are already established in
State statute and City Code Chapters 136 and 182. This policy further defines the
processes to create a guide and standard for staff to utilize in the administration of
water and sewer billing that is past due.
Section 5.0: Procedures
A. Liens- The Tax Collector is responsible for implementing the lien process as
follows for past due water and sewer bills.
1. The Finance Director shall commit to the Tax Collector any unpaid past
due water or sewer bills.
2. In January of each year, "Letters of Arrears" are sent to homeowners with
any outstanding balance over $5.00 (to inform user of open balance).
3. In March (30 days after Letter of Arrears), "Letters of Impending Lien"
are sent by Certified Mail. This adds (current fee) per State Statute.
DocuSign Envelope ID: 53F12ED1-28F6-46C4-AE5E-294671888B5D
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
WATER AND SEWER
LIENS/DISCONTINUANCE OF
SERVICE/ABATEMENTS
Policy Number Effective Date Last Revision Page No.
ADM-135 3/31/2021 Page 2 of 4
Approved by:
4. In April (30 days after Letter of Impending Lien), the lien is recorded at
the Grafton County Registry of Deeds for unpaid balance. This adds the "lien
fee" (current fee) per State Statute.
5. In June (within 45 days of date of lien), letters are sent to mortgage
holders notifying them of the lien. This adds a $20.00 fee (current fee per
Mortgagee) per State Statute.
6. After two years - If any balance remains on a lien after two years and a
day from the date of the lien, the property owner and mortgage holder
receives a "Letter of Impending Deed" sent certified mail with a $10.00 fee
added (current fee) per State Statute. At this point, the City can take title to
the property for unpaid water and/or sewer liens.
B. Properties Deeded to the City through a Tax Lien
This section pertains to all properties deeded to the City because of
nonpayment of water bills or sewer rents. This policy is based on the premise
that neither the City nor the Water or Sewer Utility shall take advantage of
each other. Where the City is deriving no income with respect to properties
which it owns through tax deed, it is not reasonable for the utilities to derive
income from these properties. Conversely, the utilities should ultimately be
paid for prior amounts outstanding and owed. These amounts being principal,
interest and lien fees which are owed prior to the City taking the parcel.
1. Tax deeded properties which derive no income to the City shall not be
charged any utility fees during said time at which they derive no income.
2. Charges owed to the utilities prior to tax deeding shall be liened by Notice
of Assessment filed at the Registry of Deeds. This Notice of Assessment shall
be paid by the purchaser at the time that the property is sold on the market
for taxes, or by the City if it begins to derive income from the property.
3. If the City decides to retain a property and designates it for potential
building, it shall be liable for "access only" charges throughout the duration
in which it owns the property and shall also be responsible for all fees owed
as a result of "Liens" or "Notice of Assessment" at the Registry of Deeds.
DocuSign Envelope ID: 53F12ED1-28F6-46C4-AE5E-294671888B5D
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
WATER AND SEWER
LIENS/DISCONTINUANCE OF
SERVICE/ABATEMENTS
Policy Number Effective Date Last Revision Page No.
ADM-135 3/31/2021 Page 3 of 4
Approved by:
4. If the property is sold for less than the value of the Notice of Assessments,
the loss shall be recorded on the books of the City and the utilities as a loss
to the utilities in proportional value to the respective amounts of fees owed.
C. Discontinuance of Water Service
City Code 182-29 Discontinuance of Service details the process and reasons
for discontinuance of water service. The code provision is permissive in that
it states water service may be discontinued for the reasons indicted in that
section.
1. 14 days after a bill for water or sewer service is due and has not been
paid, a NOTICE OF LATE PAYMENT shall be sent by the Utility Billing Clerk
to the owner of the property demanding payment of the amounts due
including interest fees.
2. 30 days after a water or sewer service is due and has not been paid a
DISCONTINUANCE OF SERVICE NOTICE shall be sent by the Utility Billing
Clerk to the owner of the property demanding payment of the amounts
due including interest and fees. Door placards shall be placed on the
main door of each property and the door of individual leased/rented space
within a property provided those doors can be accessed.
3. 10 days after the DISCONTINUANCE OF SERVICE NOTICE has been sent
the Department of Public Works, Utilities Division shall discontinue water
service for the property with past due water or sewer bills. Service shall
not be restored until payment for past due water or sewer bills including
fees and interest have been paid or other approved arrangements are
made.
D. Hardship, Payment Plans and Abatements
1. Requests for payment plans due to financial hardship shall be filed with
the Utility Billing Clerk, reviewed by the Department of Public Works and
approved or denied by the City Manager in accordance with the provisions
of City Codes 182-33 and 136-80 .
DocuSign Envelope ID: 53F12ED1-28F6-46C4-AE5E-294671888B5D
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
WATER AND SEWER
LIENS/DISCONTINUANCE OF
SERVICE/ABATEMENTS
Policy Number Effective Date Last Revision Page No.
ADM-135 3/31/2021 Page 4 of 4
Approved by:
2. Requests for abatements shall be filed with the Department of Public
Works and approved or denied by the City Manager in accordance the
provisions of City Codes 182-33 and 136-80 .
Section 6.0: References (Charter/Code/State Statues)
1. City Code Chapter 136 Sewer
2. City Code Chapter 182 Water
3. NH RSA 38:22 Liens and Collection of Charges
4. NH RSA 38:31 Discontinuance of Service
Section 7.0: Policy & Procedure Revision History
Section Revisions Date
Original Adoption 3/31/2021
Amendment
Amendment
Amendment
DocuSign Envelope ID: 53F12ED1-28F6-46C4-AE5E-294671888B5D
FIN-Generates
Invoices to
Customers
CM-Approves
Water/Sewer
Warrants
FIN-Water/Sewer
Warrants Prepared
DPW-Meter
Reading
WATER AND SEWER BILLING PROCESSES
This act commits the
Finance Director to
collect the revenue
Third Party generates
invoices and sends to
customers
FIN-Customer Pays
bills within 30 days
FIN-Customer Fails to
pay bills within 30
days
FIN-Customer
Requests Abatement
or Payment Plan
FIN-Commits past
due bills to TC inJanuary of each year
CM-Approves/
Denies
Request
FIN/DPW-Review
request and make
recommendation to
CM
CC-Accepts or
Denies Deed
TC-Issues Tax Deed
to City Council for
Action
TC-Sends Letter of
Impending Deed 2
years after lien
TC-Sends Lien notice
to Mortgage Holders
TC-Records Lien with
the GCRD in April of
each year
TC-Sends Letter of
Impending Lien
March of each year
TC-Sends Letter of
Arrears in Jan./Feb.
of each year
FIN-Issues Notice of
Late Payment 14 days
after due date
DPW-Shuts off water
to premises 10 days
after Discontinuance
Notice is sent
DPW-Places Placards
on Doors
FIN-Issues
Discontinuance of
Service Notice 30
days after due date
DISCONTINUANCE
OF SERVICE
LIEN ABATEMENT AND
PAYMENT PLANS
NOTE: Once a past
due bill is committed
to the TC, the TC will
collect any past due
amounts not Finance