HomeMy WebLinkAboutItem 076-JL a..
Apri110, 2013 Item No.
Resolution Certifying Unpaid Water, Sanitary Sewer, Storm Sewer and Street Lighting
Charges to the County Auditor to be Collected with Other Taxes
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution Certifyin
Unpaid Water, Sanitary Sewer, Storm Sewer and Street Lighting Charges to the County
Auditor to be Collected with Other Taxes.
Passage of this motion will result in certification of delinquent utility bills to County Auditor
for collection with the 2014 taxes.
Overview
The City can minimize its losses due to bankruptcies by certifying delinquent utility accounts
to taxes. In addition to certifying the amount delinquent, the City also collects a $35 service
charge to cover the cost of certification and interest at a rate of 18% per annum of the
amount delinquent for the period of April 15, 2013 until December 31, 2014.
It is anticipated that a number of the accounts will be paid in full prior to the hearing. A final
list of the accounts to be certified will be provided to the City Council at the public hearing.
It is also anticipated there will be customers who will pay by credit cards on Monday, April 15.
However, notification of payments will not be available until Tuesday, April 16. As such a list
of the April 16 credit card customers will be listed on Exhibit B and hence removed from the
certification list (Exhibit A) to the county.
Primaa Issues to Consider See attached
• What is the background and notification process of the accounts being certified?
Supporting Information
Dennis Feller
City of Lakeville
Finance Director
Financial Impact: Certification minimizes losses due to bankruptcy Budgeted: N A
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
➢ What is the background and notification process of the accounts being certified
The proposed certification only includes accounts which have had a change of ownership;
accounts which have had no change of ownership will be certified in October.
According to City Attorney Roger Knutson, "if water service is provided to property and the
property is subsequently sold or otherwise transferred, the new owner does not have a
personal obligation to pay the bill unless the City and owner have a separate services contract.
Unpaid water bills, however, are a lien on the property to which the service was provided. If
the property is sold or the ownership transferred, the lien remains.
At the time the City provides water service to a property the City has an enforceable lien on the
property for the cost of the water provided. Minnesota Statutes, Section 514.57 provides: "All
charges ... of any nature now or hereafter authorized or required by law ... shall constitute and be
a first and prior lien from the date of such ... service upon all property in this state subject to
taxation as the property of the person from whom such charges and expenses are by law
authorized or required to be collected. No record of such lien shall be deemed necessary." The
statute's validity as applied to unpaid utility charges has been upheld. In Re Sheldahl, Inc. 298
B. R. 874 (Bankr. D. Minn. 2003).
Minnesota Statute, Section 444. Subd. 3 further provides: "The governing body may make
the charge a charge against the owner, lessee, occupant, or all of them and may provide and
covenant for certifying unpaid charges to the county auditor with taxes against the property
served for collection as other taxes are collected." City Code Section 7 -5 -5 -4 also authorizes
the City Council to certify unpaid charges to taxes.
Unpaid utility charges, special assessments and real estate taxes are all liens against the
property. The liens and their enforceability are not impaired by the transfer of ownership.
Current and previous property owners have been notified of the delinquency and certification
process.
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION CERTIFYING UNPAID WATER, SANITARY SEWER AND STORM
SEWER CHARGES TO THE COUNTY TREASURER/AUDITOR TO BE COLLECTED
WITH OTHER TAXES ON SAID PROPERTY AND ASSESSING UNPAID STREET
LIGHT CHARGES
WHEREAS, City of Lakeville ordinances establish rules, rates and charges for water,
sanitary sewer, storm sewer and street lighting services; and
WHEREAS, Minnesota Statutes, Section 444.075, Subd. 3, provides that all delinquent
water, sanitary sewer, and storm sewer charges not paid may be certified to the County
Treasurer /Auditor with the taxes on such property; and
WHEREAS, Minnesota Statute 429.101 and City Code 7 -3 -5 -4 provides that the
operation of street lights may be assessed to benefiting property; and
WHEREAS, an assessment roll has been prepared specifying the amount, which includes
all penalties to be certified against each particular property; and
WHEREAS, Section V of the resolution setting water and sewer rates, states "Accounts
certified to the County Treasurer Auditor for collection with the subsequent year's taxes will be
charged a $35.00 service charge plus 18% interest per year. "
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota that:
1. Assessment No 1307 in the amount of $5,106.83 relating to the certification of
delinquent utility bills is calculated as follows:
Total uncollected amount delinquent $ 2,993.65
Service charge $ 910.00
Interest $ 1,203.18
Total certified $ 5,106.83
A copy of Exhibit A, which is attached hereto and made a part hereof, is hereby accepted
and shall constitute a special assessment against the lands named therein. Accounts
which pay by credit card prior to approval of the resolution as shown on Exhibit B
attached hereto will be deleted from exhibit prior to certified to the county auditor.
The amounts certified shall bear interest from the date of this resolution until December
31, 2014 at the rate of eighteen percent (18 %) per annum plus a service charge. The
owner of any property so assessed may, at any time prior to certification of the assessment
to the County Auditor, pay the whole of the assessment on such property, with interest
accrued to the date of payment, to the City Treasurer, except that no interest shall be
charged if the entire assessment is paid within thirty (30) days from the adoption of this
resolution; and he or she may, at any time thereafter, pay to the City Treasurer the entire
amount of the assessment remaining unpaid, with interest accrued to December 31 of the
year in which such payment is made. Such payment must be made before December 31,
2013, or interest will be charged through December 31 of the succeeding year. A copy of
this resolution, together with the assessment roll, is to be forwarded to the Dakota County
Treasurer /Auditor for collection with other taxes.
DATED this 15th day of April 2013.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
4/10/2013
City of Lakeville
Certification April 2013
Assm # 1307
Exhibit A
Account
I
Certification
Service
Assess
Name
Service Address
Status
Tax Roll Number
Balance
Charge
Interest
Amount
LUCY HOL
18383 LAFAYETTE WAY
Final
225850707118
$ 12.34
$ 35.00
$ 14.59
$ 61.93
JOSEPH PAHL
16679 LAKEVIEW CT
Final
225480001010
$ 18.14
$ 35.00
$ 16.38
$ 69.52
JOSH MORGART(REO)
11105 LOWER 167TH ST W
Final
223795001070
$ 24.21
$ 35.00
$ 18.25
$ 77.46
PAMIKO PROPERTIES LLC
7933 GRINNELL CT W
Final
222760110060
$ 27.17
$ 35.00
$ 19.16
$ 81.33
SASHA MALAVE
16136 JOPLIN WAY
Final
225370502061
$ 39.63
$ 35.00
$ 23.00
$ 97.63
ABC COMPUTER REPAIR
16020 CEDAR AVE
Final
221950001010
$ 43.64
$ 35.00
$ 24.24
$ 102.88
L B STRACHAN (REO)
18185 JAN NEVAR CT
Final
226310002120
$ 43.82
$ 35.00
$ 24.29
$ 103.11
CARL ANDERSON
20028 HOLT AVE
Final
223217504020
$ 51.70
$ 35.00
$ 26.72
$ 113.42
THAU SOTHAVY (REO)
19057 JORDAN CT N
Final
224410002010
$ 55.13
$ 35.00
$ 27.78.$
117.91
KATIE STURM
16129 GOODVIEW WAY
Final
221700001150
$ 57.96
$ 35.00
$ 28.65
$ 121.61
STEVE TVERBERG (REO)
17076 FORFAR CT
Final
222085005170
$ 60.26
$ 35.00
$ 29.36
$ 124.62
STEVE KRAGT
18923 INCA AVE
Final
221695001080
$ 64.90
$ 35.00
$ 30.79
$ 130.69
PATRICK JOLITZ
9095 207TH ST W
Final
222755002060
$ 68.18
$ 35.00
$ 31.80
$ 134.98
JENNIFER ODAL
16845 EMBERS AVE
Final
224705005905
$ 80.10
35.00
$ 35.48
$ 150.58
DOUGLAS ROLLE
10449 163RD ST W
Final
221870004040
$ 101.54
$ 35.00
$ 42.08
$ 178.62
GREGORY BAIRE
8399 LOWER 208TH ST W
Final
225670101050
$ 110.00
$ 35.00
$ 44.69
$ 189.69
SANDRA GRAZZINI RHEDIN
119675 IRELAND PL
Final
225620001090
$ 111.04
$ 35.00
$ 45.01
$ 191.05
GREG JORGENSEN
16749 ASTERBILT LA
Final
227130109080
$ 121.16
$ 35.00
1 $ 48.13
$ 204.29
6080 L 161ST ST LLC
6080 LOWER 161ST ST W
Final
222117714040
$ 126.08
$ 35.00
$ 49.65
$ 210.73
CHUCK JENSEN
8388 172ND ST W
Final
228460004060
$ 142.63
$ 35.00
$ 54.75
$ 232.38
BRAD JORDAHL
9585 165TH ST W
Final
220060007010
$ 205.38
$ 35.00
$ 74.09
$ 314.47
JENNIE ANDERSON
21110 HONEYCOMB WAY
Final
223080202060
$ 214.15
$ 35.00
$ 76.79
$ 325.94
JEREMY THON
20665 HOWLAND AVE
Final
222390003071
$ 247.63
$ 35.00
$ 87.11
$ 369.74
MULE PROPERTIES LLC
17431 GOODHUE AVE
Final
221705203130
$ 266.49
$ 35.00
$ 92.93
$ 394.42
JEAN FABER HANVIK
16267 HAVELOCK WAY
Final
223175006010
$ 300.00
$ 35.00
$ 103.25
$ 438.25
ROBERT THOMAS HOMES INC
16869 DIAMONTE WAY
Final
227130801040
$ 400.37
1$ 35.00
$ 134.19
$ 569.56
Total Number of Accounts
26
2,993.65
t
i s 910.00
$ 1,203.1$
$ 5,106.83