Title
Consider approving Ordinance No. 4000, amending Chapter 86, “Utilities,” of the City’s Code of Ordinances to enable the City to pursue recovery of unpaid utility balances through property-based enforcement mechanisms; and take appropriate action.
Body
REQUESTOR:
Finance Department
BACKGROUND:
The City of Farmers Branch is committed to implementing and maintaining fair, consistent, and transparent utility billing and connection practices, and to ensuring equitable treatment of all customers, clear communication of policies and obligations, and efficient administration that supports both service reliability and fiscal responsibility.
Chapter 86, Section 86-302 of the City’s Code of Ordinances establishes that utility accounts become delinquent if not paid by the due date, authorizes the assessment of late fees, requires notice to the customer, and permits service disconnection for nonpayment until the outstanding balance is resolved. While these enforcement mechanisms are generally effective, there are limited situations where balances remain unpaid, particularly in cases involving multi-unit or commercial properties.
Under Texas Local Government Code § 552.0025, the City may, by ordinance, enforce collection of delinquent utility charges through a lien placed against the serviced property. For a business owner, this means the outstanding balance, along with any applicable late fees, interest, and administrative costs, becomes secured to the property. The lien may restrict the sale or refinancing of the property.
DISCUSSION:
Approval of Ordinance No. 4000 will amend Chapter 86, Section 86-302 of the City’s Code of Ordinances and provide the City with additional enforcement options in select cases where existing collection efforts have not been successful by allowing a lien to be filed against the property where service was provided for outstanding utility balances, including applicable penalties, interest, and administrative costs. Liens would be filed in the Dallas County real property records and follow applicable priority rules.
This tool is intended to be used on a case-by-case basis based on severity rather than as a routine collection method.
FISCAL IMPACT:
None
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Ordinance No. 4000 as presented.
2. I move to approve Ordinance No. 4000 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Ordinance No. 4000
2. Chapter 86, Section 86-302 Redline