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HomeMy WebLinkAboutItem 06.dLakeville August 27, 2013 Item No. Resolution Calling Public Hearing to Certify Unpaid Utility Charges to the County Auditor- Treasurer and specially assessing delinquent street light charges Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution calling Public ublic Hearing to Certify Unpaid Utility Charges to the County Auditor — Treasurer and specially assessing delinquent street light charges. Passage of this motion will result in public hearing on October 7, 2013 to certify delinquent utility bills 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 October 7, 2013 until December 31, 2014. Minnesota Statutes require the City to call a public hearing for the certification process. Public notice of the hearing will be mailed to customers and published in the paper. The certification process affects about 2% of Lakeville customers. Primary Issues to Consider • Is certification process the most efficient method of collecting delinquent accounts? In the staff s opinion, certification is the least labor - intensive method of collecting delinquent accounts. It is also the process least likely to foster ill will amongst customers. Supporting Information • Approximately 60% of the delinquent accounts will pay their balances in full prior to the public hearing. A final list of the accounts to be certified will be provided to the 7e cil at the public hearing. Dennis inan Director Financial Impact: $ Budgeted: Y/N _ Source: Related Documents (CIP, ERP, etc.): Notes: CITY OF LAKEVILLE RESOLUTION No RESOLUTION CALLING PUBLIC HEARING TO CERTIFY UNPAID UTILITY CHARGES TO THE COUNTY AUDITOR - TREASURER AND SPECIALLY ASSESSING DELINQUENT STREET LIGHT CHARGES WHEREAS, Minn. Stat. 444.075, Subd. 3 authorizes the City to certify unpaid sanitary sewer, water and storm sewer charges ("utility charges ") to the County Auditor - Treasurer for collection with taxes; and WHEREAS, Minn. Stat, 429.101 authorizes the City to special assess unpaid street light charges ("special charges "); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville: 1. A public hearing shall be held on the 7th day of October, 2013 at the Lakeville Council Chambers, 20195 Holyoke Avenue, at 7:00 p.m. to consider certifying unpaid utility charges to the County Auditor - Treasurer for collection with taxes and assessment of special charges. 2. The City Clerk is hereby directed to cause a notice of the hearing to be published once in the official newspaper at least two (2) weeks prior to the hearing. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the unpaid utility charge list not less than two (2) weeks prior to the hearing. APPROVED AND ADOPTED this 3rd day of September 2013 by the City Council of the City of Lakeville. CITY OF LAKEVILLE By: Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk