Why Should Delaware Care?
Wilmington’s management of its water billing and shutoffs has been a contentious issue since COVID. The previous Purzycki administration enacted a shutoff moratorium that later ended. Since then, questions have been raised around when the city shuts off its water and sewer systems to residents.
Wilmington Mayor John Carney vetoed an ordinance Wednesday that would have prevented city officials from shutting off water service to vulnerable residents with delinquent bills.
In a letter sent to city council members, the mayor said his office could not support the measure as it would “create an environment that incentivizes individuals not to pay for our public utilities.”
The veto comes two weeks after the Wilmington City Council passed a package of housing reform legislation, including the water shutoff measure.
Carney signed other ordinances that were part of the reforms, including one that provides renter protections against evictions; another that allocates money to homeowners for repairs; and a third that provides money for vacant property rehabilitation.
The water shutoff ordinance would have prohibited the city from discontinuing water service to households that are occupied by a senior citizen, by a person with a disability, or by a child under 5 years old.
Only households making equal to or less than 350% of the annual federal poverty level would have been eligible for the program. For a family of three, that would equate to a little over $95,500 according to the U.S. Department of Health and Human Services.
During a July 9 council meeting, the bill’s sponsor, Councilwoman Shané Darby, said it was not about debt forgiveness but instead about ensuring an essential item for residents who can not afford it.
“It does not eliminate anyone’s responsibility to pay their water bill,” she said. “It simply ensures that the city does not use water shutoffs as a collection tool.”
In his veto letter, Carney noted there are 4,000 delinquent accounts in the city. He said water disconnections are rare due to current safeguards already in place, such as prohibitions on shutoffs during extreme weather.
The city also maintains a Utility Payment Assistance Program that residents can access if they are overdue on utilities for more than 90 days. Qualified residents can receive up to $1,500 to pay their delinquents water and sewer bills.
Still, Carney asserted in his letter that a notice of water disconnection remains a “critical mechanism” for the city to collect overdue accounts, and keep the city’s water system financially stable.
“We cannot responsibly manage our water utility if we are prohibited from using the very tool that compels engagement and prevents further deterioration of the system,” Carney said.
He did not note what deterioration has already occurred.
Darby also disagreed that her legislation would encourage people to not pay their utilities. She cited a 2024 Temple University study that showed households typically keep paying what they can when such protections are in place.
“Right now we’re very reactive. We wait for people to get into debt before we help them. I want to be proactive,” she said.
Darby says she is seeking a veto override on the water shut-off legislation.
The vote could take place on Aug 6.
How does the city enforce delinquent bills?
Darby had proposed numerous iterations of her water-shutoff bill, going back to 2021, according to city council’s website.
During COVID, water billing reform became a major point of discussion in the city after officials enacted a 15-month moratorium prohibiting water shutoffs for residents.
In 2021, Darby unsuccessfully tried to bring another six-month moratorium into effect to protect residents who she said were financially struggling “due to the lasting impacts of the pandemic.”
Three years later, the issue resurfaced, as advocates and some city council members argued it was unfair for the city to push homes to sheriff sale foreclosure over past-due water bills, or to issue 96-hour shutoff notices.
That same year the Wilmington Fines and Fees Task Force issued a report that found water bill revenue had grown faster than any other city revenue source at the time. They also found that shutoff notices disproportionately hit residents in low-income neighborhoods and recommended the city end water shutoffs and foreclosures over unpaid bills for vulnerable residents.
The former administration under Mayor Mike Purzycki agreed to stop using foreclosures over past-due water bills and to issue 96-hour shutoff notices only after six months of delinquency.
At the time, some critics also claimed that city officials treated overdue water bills differently depending on property type, giving larger commercial properties more leniency than residential ones.
In August 2024, the News Journal reported that the downtown property that includes the prominent DuPont Building had previously held an unpaid balance of $124,537. A payment plan was set up for property, according to the News Journal.
The Purzucki administration later told Spotlight Delaware that payment plans the city had reached with such businesses were available to all customers.
Criticism over the issue also arose during the July 9 City Council meeting’s public comment period when several people argued that the city had been more lenient with delinquent water bills from businesses than residences.
“Access to clean water is a basic human right, and I understand that finances are an issue, but I think we need to look at the bigger picture,” said April Collins, a resident and a nurse.
Carney’s office did not respond to subsequent requests for comment on Thursday regarding current practices for collecting water bills from commercial properties.
Wilmington’s 2027 budget includes a 7% increase for water and sewer rates, as well as stormwater rates. Water and sewer fees make up about a quarter of the city’s budget revenue.
After 2020, the city began increasing its water and sewer rates by about 5% each year.
This year’s increase marks the city’s highest increase since then.
