PAUD seeking to eliminate compounding fee

By CHARITY SMITH

[email protected]

Ramsay — The Powderhorn Area Utility District is close to finalizing a change to the district’s late fee which would make it non-compounding. The district board discussed the matter at its meeting Wednesday, held via telephone conference.

The board is seeking to have the late fee for unpaid utility bills remain at 10%, but eliminate the compounding portion, to make it easier for customers to get caught up.

The members heard that the Bessemer Township board approved the change at its meeting Monday and that the Ironwood Township board is scheduled to discuss the matter on this coming Monday. Both approvals are needed before the PAUD board can make such a change.

PAUD board member Nena Kleimola told the Bessemer Township board on Monday that the 10% compounding makes it very difficult for residents who fall behind to get caught up. She said she knows of several people who have ended up losing their properties because they couldn’t catch up as a result of compounded fees on bills that are already high.

“It will not take effect for this new billing going out, either way,” said Jeff Randall, Bessemer Township supervisor, during the PAUD board meeting on Wednesday, in reference to the billing that will be going out soon for this last quarter.