Item Coversheet

*4.A.1.


Shakopee City Council
March 17, 2020


FROM:Nathan Reinhardt, Finance Director
TO:Mayor and Council Members
Subject:
Certification of Delinquent Sewer and Storm Drainage Accounts
Policy/Action Requested:
Adopt Resolution No. R2020-037, certifying assessments for delinquent sewer and storm drainage accounts from 2019, adding a $25 administrative charge for collection with payable 2021 property taxes and writing off 88 delinquent accounts (properties with balances of less than $20) totaling $845.45.
Recommendation:
Approve the resolution as requested.
Discussion:

The City routinely certifies past due utility bills for collection with the property taxes. All property owners have been notified that the utility bills are being certified to the County and have been given adequate opportunity to pay their bill.

Resolution No.
R2020-037 certifies delinquent storm drainage and sanitary sewer fees on the tax rolls payable in 2021. In addition to these delinquent amounts, a $25.00 administrative charge will be added to each account if not paid on or before March 3rd. After the accounts are certified, property owners will have 30 days to pay the balance interest free. After 30 days, interest will be charged at an annual rate of 6.0% dating back to the certification date. 

 

Staff has found that a majority of the delinquent accounts being certified are typically former tenants in rental units or prior owners of a property. Since the city’s utilities are attached to the property, the city has the ability to collect past due balances through the certification process. 

In past years, staff has certified delinquent utilities in the fall with other special assessments.  City staff is now requesting this information shortly after year-end rather than waiting until the fall, which coincides with SPUC’s end of the year delinquent process. This aids in the collection process, as the delinquent accounts are more current. This is beneficial when a property is dealing with new owners or prior tenants. 

Budget Impact:
Certification of delinquent accounts ensures the city’s utilities are reimbursed for services provided. 
ATTACHMENTS:
Description
Res. No. R2020-37
Certification List