Discussion:
The city routinely certifies past due utility bills for collection with the following years 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. 7950 certifies delinquent sanitary sewer and storm drainage fees on the tax rolls payable in 2018. In addition to these delinquent amounts, a $25.00 administrative charge will be added to each parcel if not paid on or before November 21. The attached list is current as of Wednesday, November 15. Payments received after that date through December 21 will be removed from the final certification list. 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 5% dating back to the certification date.
Staff has been working with Shakopee Public Utilities (SPU) to clean up outstanding account balances. Back on September 19, 2017 the City Council approved writing off the delinquent sewer and storm drainage accounts from 2000 to December 31, 2015. The rational was that these past due balances were several years old and the chances of the original account holders or even the subsequent account holders still remaining at the residence is unlikely.
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. SPU does a transfer at the end of each calendar year to move current delinquent accounts to an uncollectible status. Since the city's utilities are attached to the property, the city has the ability to collect past dues balances through the certification process. Whereas, SPU does not have that ability and can only collect from the accountholder, which may or may not be the property owner.
Staff is also requesting 36 accounts with delinquent balances less than $5 totaling $123.03 be written off. Staff reduced the certification threshold down to $5 as result of finding that delinquent accounts are often tied to an apartment complexes under one parcel. Thus the combined delinquency amount under those parcels grew to a larger dollar value.
Next year, city staff will look to certify delinquent 2017 accounts in February or March of 2018, rather than waiting until the end of the year. This is will aid all parties involved and provide property owners with a more timely notification of delinquent accounts.