Missoula City Council makes unpaid utility bills the responsibility of property owner, not tenant

The Missoula City Council on Monday changed a city ordinance making a property owner responsible for any utility bills that aren't paid by the tenant.

The new ordinance stipulates that property owners, not the renter, are responsible for the payment of all charges for water, sewer and stormwater services delivered to the property. The city last year combined all three services onto one bill, and now it's looking for a means to collect unpaid bills.

“I believe that during the pandemic, the city stopped shutting off customers that were past due on their accounts,” said council member Mirtha Becerra. “I think this is a fair alternative to that way of recuperating costs.”

City Attorney Jim Nugent said Montana law states that a lien can be placed against real property to recovery delinquent bills. The city isn't part of the owner-tenant lease agreement and isn't bound by how the two parties resolve overdue utility bills.

But in the end, Nugent said the city has the right to put a lien on the property receiving the service, and it's going to be the owner's responsibility to resolve the issue, even if it's related to a tenant.

“The landlord is in a contractual relationship with the tenant, and they have the security deposit,” said council member Gwen Jones. “I assume that's the tool they'd make themselves whole with if the tenant isn't paying this and the city is trying to get the bill paid by attaching a lien.”

According to the city, roughly 75% of unpaid utility bills register to properties that are owner occupied and 25% represent renters. Several members of the council pushed back against the change in ordinance, calling it inherently unfair.

“I feel like there needs to be some other option rather than putting this back on the home owner. If you use water, you should pay for it. If you can't pay for it, it probably needs to be turned off,” said council member John Contos. “I think a lot of times people think that if someone owns a home they're wealthy and can handle all the responsibilities. That's not quite true. I don't think this is a Montana value. To pass this on to the homeowner, it's not fair.”

With most unpaid utility bills allegedly stemming from owner-occupied homes, other council members voted against the ordinance over issues of affordability.

Council member Kristen Jordan said it's getting harder for some people to stay in their homes given rising taxes and other increases. Some may be forced to chose between necessities like food, medication and fuel while postponing their city utility bills.

“This is clearly a driver to affordability. When we talk about affordable housing, we need to make sure that people who own their own homes can afford to stay in their homes,” said Jordan. “Drinking water is a human right. I think there are other things we can find in our budget to help folks with these water bills and perpetuate an affordable housing concept.”

While the measure passed on an 8-3 vote, members of the council agreed to look at some form of assistance to help certain property owners cover unpaid utility bills.

“This is a good thing to do tonight with a follow-up adjustment to potentially expand assistance programs,” said council member Jordan Hess.