In April, the city informed residents about the Service Line Warranties of America program that offers homeowners warranties in the event their lines break or leak on their property, which could lead to costly repairs they would be responsible for.
The city is to receive 10 percent of sales for each resident who voluntarily signs up with Service Line Warranties, a Pennsylvania-based company.
However, Interim City Manager Brad Hulsey said the city is not aware of any residents signing up.
“The city has not been informed by SLWA as to the number of residents that have signed up thus far, and … the city has not received any funds from SLWA,” he said this week.
The water and sewer line warranties cover the underground service line from the foundation of a home to the point where the line becomes the utility company’s responsibility.
According to the city, the warranty covers water line repairs up to $4,000, plus an additional $500 for public sidewalk cutting. The sewer-line protection covers repairs up to $4,000 plus an additional allowance of $4,000 for public street cutting, if needed.
Monthly premiums are paid directly to Service Line Warranties, which has a 24-hour hotline used by customers to dispatch licensed local plumbers. Water-line warranties start at $4.25 per month, and sewer-line warranties begin at $4.75, according to the company.
“The city of Powder Springs does receive 10 percent of revenues, payable by SLWA to the city ‘within 30 days of the end of the final calendar quarter on revenue collected during the calendar year,’” Hulsey said.
Powder Springs is a member of the National League of Cities, which has endorsed the program.
Such warranty programs have not been without controversy around the country, including Texas, Wisconsin and Ohio, because the mailings – which carry official city seals – have led some homeowners to believe the warranty is required, or offered by the municipality.
Service Line Warranties operates in 28 states, according to the company’s website. The company did not return to an interview request by press time.