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Posted by David Little, Bangor, August 12, 2009:

Does anyone use NDS for your Municipal Sewer program?  If so, I would like to ask a few questions.  Particularly regarding how the system charges interest on past due accounts and sewer liens.

Currently, Bangor assesses interest to past due sewer accounts and liens at a rate that is equal to the rate we charge for taxes.  And as you know that rate changes every year.  Therefore we have sewer accounts with multiple liens and each lien is being charged a different interest rate just like the tax liens.

I have been told that the NDS sewer program can only hold one interest rate and that rate is applied to all prior balances.  Is this correct?  If so, it appears to bring up an issue of equality and possible legality if the interest rate is changed each year and reapplied to all prior balances.  How do you handle this or do you not charge interest on past due sewer?

I have also been told that the system does not calculate interest on a per diem basis but rather a monthly basis.  Is this also correct?  If so, has any legal issue come up about this?  I know MMA discourages monthly interest versus per diem but is it legally okay if the interest is charged going back not forward.  For example, the July 1 bill would include interest due through June 30 and that amount would pay the account in full whether it was paid on July 2 or July 31.  The August 1 bill would include interest through July 31.  The municipality is actually losing interest doing it this way but can they chose to do this?

Any comments or help would be appreciated even if you do not use NDS.

Responses: We use TRIO in Milbridge.(Lewis Pinkham, Milbridge)