Friday, July 18, 2003

Fairburn's insurance premiums take unescpected jump

By LINDSAY BIANCHI
Special to The Citizen

The city of Fairburn had to dig into its reserve funds this week to cover the increased cost of their insurance policy. Without any prior notice, the policy's premium for liability jumped from $97,000 to $161,000 for the new fiscal year. Retirement insurance climbed from $34,000 to $139,000, more than four times the original amount.

"They're treating us like second class citizens," City Administrator Jim Williams said. Poor stock market performance and rising insurance costs since the 9/11 disaster are partly to blame, Williams added.

Funds were reallocated within the current budget to meet most of the financial increase, but an extra $53,000 was needed to cover the difference.

The City Council also discussed discrepancies in the utility billing procedures. Some larger companies have run up $15,000 in charges before they were collected. Doug Crawford, council member, said they are being "grossly taken advantage of."

It was decided that a more timely method was needed to stay abreast of delinquent accounts. A 5 p.m. deadline on the 16th of each month was set with a 10 percent late fee to be added to past due accounts. Standard disconnect notices will be sent out within 24 hours of the due date. If bills are still unpaid by the 23rd of the month, then a work order for disconnection will be issued. A reconnection fee of $25 will also be applied.

Past due accounts will be discussed by a Billing Resolution Committee composed of the Mayor, the City Administrator, the Director of Utilities and the Finance Manager. This will take place after the 5 p.m. deadline on the 16th and before the 2 p.m. deadline on the 23rd of each month.

Special exceptions will be considered, but only the Mayor and/or the City Administrator will have the authority to schedule partial payments or waive fees.