JEFFERSONVILLE — Haven House Services’ Williams Emergency Shelter — a Jeffersonville-based homeless shelter — will likely have a lien placed back on the property because its sewer bills have gone unpaid since 2008.

Outstanding payments owed to Jeffersonville’s Sewer Department were discovered and brought to the attention of the Jeffersonville City Council Monday night by resident Mike Hutt — a frequent public critic of the city’s administration.

“I didn’t know that the amount was that much,” said Mayor Tom Galligan. “The first I knew of it, that this amount existed, was [Monday] night.”



Politically motivated?

Hutt presented documents that showed that Haven House had a total of $35,910 in unpaid sewer bills and questioned the mayor and the council why the organization was not being charged the sewer fees.

Following the presentation Fetz said Haven House — which has been plagued by financial difficulties, including facing the auctioning of the agency’s properties because of unpaid federal taxes — couldn’t pay the outstanding sewer bills anyway and asked Hutt why the issue was brought up.

“Haven House is a homeless shelter who has struggled financially, has had issues financially, that everybody has been aware of and everybody knows the current financial situation down there,” Fetz said during Monday’s meeting. “We can file a lien, but what is that going to get us? Nothing. It’s not going to get paid. I think what we’re trying to do is figure out a situation that best helps all the people in the city of Jeffersonville and not just nitpick. This is a charitable organization.”

Hutt responded that while the shelter is a charitable organization, it is still not exempt from paying bills.

“It’s something that has been going on for a long time, and it’s against state statutes and it’s against our own ordinance,” Hutt said. “Everything points to the fact that they can’t say a certain entity doesn’t have to do this.”

But Haven House director Barbara Anderson said Hutt bringing the issue to the council’s attention was nothing more than a political attack against Galligan, who is running for re-election this fall.

“It was dug up to embarrass the mayor,” Anderson said.  “I’m not about to be a political pawn in the mayor’s race.”

But Hutt disagreed with Anderson’s claims.

“It’s not political at all,” he said. “[Councilman Keith] Fetz and Galligan made it political [with their actions].”

He added that he was interrupted during his public comment period at Monday’s meeting before he was able to finish his comments and was going to offer the city a plan on how it could structure a payment to allow Haven House to pay back the overdue bills. But Hutt also maintains he city did know of the liens placed on Haven House.



Galligan’s letter

The News and Tribune attained a copy of a letter from Galligan — dated July 11, 2011 —  to Clark County Auditor R. Monty Snelling where he requested a lien be removed on a property owned by Haven House that dated back to 2007.

The property was 624 E. Seventh St. and the letter claimed that the lien was placed on the home in error.

“That letter that I wrote and signed was in reference to that lien,” Galligan said. “They had a letter saying it was in error. I had very little time to make a decision on the thing.”

He added that the auditor’s office told Galligan it required a signed letter from him to be able to remove the lien and that the sewer board had already voted to remove the lien previously placed on the property.

But according to a comment listed on the East Seventh Street property at the city’s sewer billing office, “per [the] mayor we are not to lien this property. It belongs to Haven House.”

The comment was dated May 13, 2011.

According to minutes from an April 2007 meeting — before Galligan’s latest term as mayor began  — Anderson presented the sewer board with several Haven House properties that liens had been placed against, and the amounts owed to the city for sewer bills.

The sewer board unanimously agreed to release the liens with the balances still remaining being subject to collection.

Subsequently, sewer board Attorney Scott Lewis sent a letter to the county asking for the liens to be removed on 1727 Green St., 915 Walnut St., 1042 Kehoe Lane and 817 Springdale Drive.

“I am requesting that your office file the appropriate ‘release of sewer lien’ documents with the Clark County Recorder’s office,” according to the letter from Lewis. “However, even though the sewer board has authorized the release of the said sewer liens, the sewer board recognizes that the outstanding balances shall remain due on each property.”

Galligan said he was unaware that the letter from Lewis ever existed.

Anderson said the liens on the other properties were paid by individuals who eventually purchased the homes.

“They were all paid,” she said. But she conceded, “while they were in our name, they were not paid.”

The only outstanding bill that remained unpaid was on the Williams Emergency Shelter on Green Street.

Despite making previous requests for the removal of the liens, Galligan said he will now take the paperwork in front of the sewer board and most likely the result will be a lien being placed back on Haven House.

“We will just redo the lien if that’s what the sewer board chooses to do,” he said.



An equitable solution?

Restoring the liens on Haven House for non-payment of its sewer bills is in contradiction to what Anderson believes should happen.

“I thought [Jeffersonville] should forgive our sewer bill because the city animal shelter is not charged for their sewer bill,” she said. “As long as you can give them free sewer [service], you can give us free sewer [service].”

Anderson said that every other city department has to pay a sewer bill, so why was the animal shelter exempt?

“We are the animal shelter,” Galligan said. “It’s taking tax dollars and then turn[ing] around and paying them back [to ourselves]. We pay for [the bills] anyway.”

Anderson was quick to offer a response.

“They can buy our shelter,” she said. “If they want to use that argument, they can buy the shelter. At one point or another our community has to become responsible for all of our citizens.”

Anderson continued that poor people should be treated, at least, on the same level as the animals in the animal shelter and that she was taking a stand.

“This is about protecting the people I serve and expect partnership from the city,” she said. “If the city did what other cities do, we would receive $100,000 a year. We would never have had a financial problem if we received financial assistance. If you can’t give me money give me free services. If [you’re] a financially strapped organization or someone struggling ... [you should] be exempt [from paying the sewer bills]. That would be the city’s way of offering support. The city has the ability to help.”

Galligan said that was not a reasonable solution.

“The council has not given her any money because they chose not to do that,” he said. “They wouldn’t choose not to do that and then say, ‘we’re just going to forgive all your sewer bills.’”

He added that all of the nonprofit organizations within the city are charged for their sewer services.

“It’s not fair to the average person that pays their sewer bill,” Galligan said. “They’re having just as tough a time as she is. Everybody else has to pay. She has to pay her water bill. Why are we different than the water company?” he asked.

Anderson said in other communities it happens where city services are not assessed because of the services that are being provided to its citizens. She said the issue was raised because she has become a lightning rod for controversy and if the liens are returned, it may force the shelter to close.

“I resent the fact that this was done,” she said. “Whether that was the intention or not that [ticks] me off.”

Galligan said the issue will be discussed at the next sewer board meeting scheduled for 3 p.m. Thursday.