Item Coversheet

*4.A.5.


Shakopee City Council
February 15, 2022


FROM:Nathan Reinhardt, Finance Director
TO:Mayor and Council Members
Subject:

Certification of Delinquent Sewer and Storm Drainage Accounts

Policy/Action Requested:
  1. Adopt Resolution No. R2022-019, certifying assessments for delinquent sewer and storm drainage accounts from January 1, 2021 thru June 30, 2021

  2. Add a $25 administrative charge for collection with payable 2023 property taxes.

  3. Write off delinquent accounts less than $25 which total $228.92.
Recommendation:
Approve the resolution as requested.
Discussion:

The City 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. R2022-019 certifies delinquent storm drainage and sanitary sewer fees payable in 2023. In addition to these delinquent amounts, a $25.00 administrative charge will be added to each account if not paid on or before February 15, 2022.  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. 

 

Delinquent accounts being certified include former tenants in rental units or prior owners of a property.  Since the city’s utilities are attached to the property, the city can collect past due balances through the certification process. 

 

In the past years, staff has certified delinquent utilities in the fall with other special assessments.  Through a collaborative effort with Shakopee Public Utilities staff, the City now receives this information twice a year, including shortly after year-end rather than waiting until the fall.  This coincides with Shakopee Public Utilities 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 being paid for services received.
ATTACHMENTS:
Description
Resolution #2022-019
Updated Delinquencies