Item Coversheet

*4.A.2.


Shakopee City Council
AprilĀ 17, 2018


FROM:Darin Nelson, Finance Director
TO:Mayor and Council Members
Subject:
Certification of Delinquent Sewer and Storm Drainage Accounts.
Policy/Action Requested:
Adopt Resolution No. R2018-052, certifying the delinquent sewer and storm drainage accounts from 2017, adding a $25 administrative charge for collection with payable 2019 property taxes and writing off 18 delinquent accounts totaling $39.83.
Recommendation:
Approve the resolution as requested.
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. R2018-052 certifies delinquent sanitary sewer and storm drainage fees on the tax rolls payable in 2019. In addition to these delinquent amounts, a $25.00 administrative charge will be added to each parcel if not paid on or before April 17. The attached list is current as of Thursday, April 12. 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 6.75% 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 yearend rather than waiting until the fall, which coincides with SPUC's end of year delinquent process. This aids in the collection process, as the delinquent accounts are more current. This is truly beneficial when a property is dealing with new owners or prior tenants.

Budget Impact:
Certification of delinquent accounts ensures the city's utilities are paying for services received.
ATTACHMENTS:
Description
Resolution No R2018-052
Delinquent Utility List as of April 12, 2018