RACINE - When renters choose not to pay their water bills, landlords later see the charge on their property taxes. It's the law - a law that could change if the Landlord Protection Bill passes in the state Legislature.

Current state law allows municipalities to transfer unpaid water utility bills to the property owner's taxes. But under this bill, landlords would no longer be held accountable for their tenants' bills. The landlord would simply have to provide the name and address of the tenant, who would then be held responsible for payment.

"Why should the landlord be responsible for collecting the bill, but only the water bill, when they are not held to the same standard for other bills?" said Rep. Robin Vos, R-Caledonia. "It is using landlords as a collection agency."

Vos owns around 20 rental properties in Whitewater and is one of the co-sponsors of Assembly Bill 649, known as the Landlord Protection Bill.

"The current system puts all the cost on the landlord," Vos said. "It's not like the landlord is paying to use the water."

Keith Haas, general manager of Racine Water and Wastewater Utilities, is concerned about the pending legislation.

"If the landlords are successful, I'm going to have to threaten to turn off 6,000 customers," Haas said.

The Racine utility does not currently turn off tenants' water because officials know that bills will get paid in the long run by the property owner, Haas said.

Haas said he is concerned that if the city counts entirely on tenants to pay the bill, it may have to hire more employees to help collect the money. The city would also likely have to raise rates to make up for the renters who repeatedly do not pay their bills.

Brenda Konkel, executive director of the Tenant Resource Center in Madison, deals with tenants and landlords every day. She said she is not surprised that landlords are upset, but that problems can be avoided without changing the law.

"It's a repeated problem when utilities are not included in the rent," Konkel said. "We suggest they add the utilities to the rent to avoid that happening."

That is exactly what Racine County Supervisor Michael Miklasevich does. He owns around 85 residential rental properties in Racine.

Instead of waiting to pay the water bill on his property taxes, along with interest, he adds the bill to his tenants' rent and pays it himself.

If he left the bills for his tenants, Miklasevich said he fears "they wouldn't get paid."

"It would be a health issue," Miklasevich said. "Would people stay in there using a bucket? Who knows."

The bill was referred in late December 2007 to the Assembly Committee on Urban and Local Affairs. The next step would be to hold a public hearing on the bill, but no date has been set, said Rep. Robert Turner, D-Racine, a member of the committee.

Turner is a former Racine alderman and public works committee member, where he dealt with water utilities and the struggle of collecting water bills.

More people put off paying

RACINE - Nearly 20 percent of Racine water and wastewater customers did not pay their full utility bills in 2007, totaling approximately $2.78 million that was added to owners' property taxes. That amount is more than double from 1993, when the bills added up to $1.2 million, according to Keith Haas, general manager of Racine Water and Wastewater Utilities.

State law currently allows municipalities to transfer unpaid utility bills to the owner's property taxes and 6,577 customers out of 33,052 did so in 2007.

Haas is not certain why the number of delinquent customers has increased so significantly, but he said it could be "a sign of the times."

"If you have a limited income, you have to decide what bills to pay," Haas said. "It appears the decision they have made is not to pay their utility and water bills."

Unpaid utility bills are added to the property owner's taxes along with 1 percent monthly interest and a 10 percent fine at the end of the year.

If a resident with a quarterly bill of $100 did not pay the bill all year, the initial $400 utility bill would increase to $474.35 on the person's property taxes.

Water bills get new look

RACINE - Racine water and wastewater utility bills have gotten a makeover.

As of Feb. 1, Racine utility customers will no longer receive a post card-sized utility bill in the mail. Instead they will be sent an envelope with an enclosed bill, said Keith Haas, general manager of Racine Water and Wastewater Utilities.

The new mailing technique is a result of a $100,000 computer software alteration that was essential after 20-plus years with the city's old system. The cost includes software, training, customization and licensing.

The new bills will initially cost about 41 cents to mail, but Haas is looking to reduce that rate by presorting mail based on specific ZIP codes.

Haas said other city departments may also stuff information into the envelope and save money on their own mailing fees.