R.Lawrence – November 10, 2020 – Contracting with Private Business to Collect Municipal Utility Bills

550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 November 10, 2020 Robert W. Lawrence, Esq. City Attorney, City of Crystal Springs Post Office Box 473 Crystal Springs, Mississippi 39059 Re: Contracting with private business to collect municipal utility bills Dear Mr. Lawrence: The Office of the Attorney General has received your request for an official opinion. Questions Presented 1. May the City of Crystal Springs (the “City”) contract with a private business to accept payment of municipal water and sewer bills? 2. If the response to question 1 is affirmative, what parameters are required (i.e., payment of fees, bonding) or, what does the Office of the Attorney General suggest with respect to these parameters? Brief Response With respect to your first question, yes. The governing authority of a municipality may enter into a contract with a private entity for the billing and collection of fees for water services and sewer services, pursuant to the municipality’s authority under Sections 21-27-7 and 21-27-11 et seq. With respect to your second question, given its broad nature, we make no suggestion regarding the parameters of the City’s billing arrangement with the private company. Applicable Law and Discussion Mississippi Code Annotated Section 21-27-7 authorizes the governing authorities of municipalities to, among other things, “erect, purchase, maintain and operate waterworks, and to regulate the same” and to “contract with any person for the maintenance and operation of waterworks.” Section 21-27-11 et seq. governs the formation and operation of municipally-owned utility systems. Robert W. Lawrence, Esq. November 10, 2020 Page 2 550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 Our office has previously opined that the governing authority of a municipality may enter into a contract with a private entity for the billing and collection of fees for water services and sewer services, pursuant to its authority under Sections 21-27-7 and 21-27-11 et seq. MS AG Op., Herring at *1 (Jan. 12, 2007) (citing MS AG Op., Thompson (June 5, 1998); MS AG Op., Littlejohn (Feb. 23, 1995); MS AG Op., Hall (Oct. 3, 1997)). In our Herring opinion, we noted that “prior to entering into a contract on behalf of the municipality, authorization must be given to the Mayor to take such action and such approval must be accurately reflected in the official minutes of the municipality as the governing authority speaks only through its official minutes.” MS AG Op., Herring at *1 (citing MS AG Op., Carroll (July 14, 2003)). Accordingly, the City is authorized to contract with a private business to accept payment of municipal water and sewer bills. With respect to your second question, given its broad nature, we make no suggestion regarding the parameters of the City’s billing arrangement with the private company. If this office may be of any further assistance to you, please do not hesitate to contact us. Sincerely, LYNN FITCH, ATTORNEY GENERAL By: /s/ Phil Carter Phil Carter Special Assistant Attorney General