Colorado Springs council advances utility-lien expansion in 9-0 vote
The proposal would let Colorado Springs Utilities seek liens for unpaid electric and gas bills, but it still needs a second reading and final passage.
Colorado Springs City Council voted 9-0 Sept. 8 to advance a proposal allowing Colorado Springs Utilities to seek liens for unpaid electric and gas bills, in addition to water and wastewater charges, according to the meeting record. The measure is scheduled for a second reading Sept. 22 and has not received final passage.
The proposal, identified in the city’s Legistar matter as file 26-366, would broaden the city code’s lien authority to cover all four utility services.
Utilities officials told the council the change is aimed primarily at large commercial debts. They said two commercial accounts each owe more than $100,000 and have been past due for more than 90 days. Officials did not identify the customers or properties.
Utilities said a lien would be an option in extreme or unusual cases, after ordinary collection practices. The lien would give the utility a secured interest in the property connected to the account. Councilman Donaldson said the goal is to reduce losses that could otherwise be passed on to ratepayers if a large customer’s property is sold or the customer enters bankruptcy.
Under the draft ordinance, unpaid charges for utility services, including connection fees, could become a perpetual lien against property connected to or served by the utility system. The utility’s chief executive officer could notify the property owner, the user or both, identify the property and amount due, and file a verified lien notice with the El Paso County clerk and recorder. The lien could be foreclosed under Colorado procedures for mechanic’s liens.
The proposal also would allow the city clerk, after notice, to certify an unpaid charge to the El Paso County treasurer for collection with the current year’s property taxes. The amount would carry a 10% penalty intended to cover collection costs.
The proposal expands a collection tool the city already uses for some stormwater charges. The council approved an ordinance in September 2025 allowing delinquent stormwater fees to be certified to the county treasurer. The utility-lien proposal has no ordinance number or effective date in the posted draft. It would take effect only after final adoption and publication under the City Charter.