HomeMy WebLinkAboutItem 09April 2, 2014 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 Certifying
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 2015 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 7, 2014 until December 31, 2015.
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 7.
However, notification of payments will not be available until Tuesday, April 8. As such a list of
the April 8 credit card customers will be listed on Exhibit B and hence removed from the
certification list (Exhibit A) to the county.
Primary Issues to Consider (See attached)
• What is the background and notification process of the accounts being certified?
Supporting Information
Den eller
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
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 53-4.67 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 444.075, 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 -6 -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 1315 in the amount of $4,741.30 relating to the certification of
delinquent utility bills is calculated as follows:
Total uncollected amount delinquent $ 2,703.34
Service charge $ 910.00
Interest $ 1,127.96
Total certified $ 4,741.30
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 7th day of April, 2014.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
4/2/2014
City of Lakeville
Certification April 2014
Assm # 1315
Exhibit A
Name
Service Address
Account
Status
Tax Roll Number
Certification
Balance
Adm
Charge
Interest
Assess
Amount
MUHAMMADKASHIF
'16824EMBERSAVE
Finalled
224705106807
$12.58
$35.00
$
14.85
$62.43
MICHAELJOHNSON
18379 LAFAYETTE WAY
Finalled
225850705118
$21.85
$35.00
$
17.75
$74.60
CINDY HOAG (REO)
11091 166TH ST W
Finalled
224435004100
$29.43
$35.00
$
20.11
$84.54
JOSEPH PANNKUK
17098 FORBES CT
Finalled
222085006070
$30.57
$35.00
$
20.47
$86.04
JESSE HUBER
9681208TH ST W
Finalled
227585002080
$47.00
$35.00
$
25.60
$107.60
RICHARD WHITTIER
8849 205TH ST W
Finalled
220290006030
$51.57
$35.00
$
27.02
$113.59
NICHOLAS SELIMOS
20535 KEYSTONE AVE
Finalled
224880001060
$52.00
$35.00
$
27.16
$114.16
TRACY GREEN
18055 KINDRED CT
Finalled
228465001300
$59.69
$35.00
$
29.561
$124.25
MICHAEL PALM
17167 EAGLEVIEW WAY
Finalled
224407615117
$65.27
$35.00
$
31.30
$131.57
CAYA WILSON
20675 HOLIDAY AVE
Finalled
226600001060
$66.98
$35.00
$
31.83
$133.81
WILLIAM KAEHLER
16340JAMISON PATH
Finalled
227715102330
$72.21
$35.00
$
33.47
$140.68
SUSIE CUBBAGE
17056 EASTWOOD AVE
Finalled
224407615090
$74.34
$35.00
$
34.13
$143.47
ROXANNE LOVEC
17165 EAGLEVIEW WAY
Finalled
224407615118
$74.99
$35.00
$
34.33
$144.32
TWILA MURPHY
7945170TH ST W
Finalled
222760004230
$80.24
$35.00
$
35.97
$151.21
DAWN STRAKA (REO)
16516 JAVELIN AVE
Finalled
226460703010
$80.85
$35.00
$
36.16
$152.01
JEFFREY GOAR
6152161ST ST W
Finalled
222117713080
$99.67
$35.00
5
42.04
$176.71
PATRICK WHITBECK
20966 JAMESTOWN AVE
Finalled
226481101100
$118.24
$35.00
$
47.84
$201.08
JINKS WILLIAMS (REO)
17206 EASTWOOD AVE
Finalled
224407815189
$121.19
$35.00
$
48.76
$204.95
RENEE HEITKAMP
7731 UPPER 167TH ST W
Finalled
222760002070
$142.10
$35.00
$
55.28
$232.38
JASON WONG
10545 188TH ST W
Finalled
222780002170
$165.34
$35.00
$
62.54
$262.88
CURT PARRISH
7760 GRINNELL WAY
Finalled
222760107050
$173.58
$35.00
$
65.11
$273.69
GARY WENDT
20765 HOLLINS AVE
Finalled
224445014080
$185.48
$35.00
$
68.83
$289.31
FINE LINE BODY ART
16010 CEDAR AVE
Finalled
221950001010
$200.05
$35.00
$
73.37
$308.42
ANASTAZIA BADEAU
16900 JALISCO TER E
Finalled
224697803010
$203.03
$35.00
$
74.30
$312.33
EVELYN GREEN
6873 UPPER 162ND ST W
Finalled
222117203220
$218.44
$35.00
$
79.11
$332.55
JASON HAUGEN 117435
FOXBORO LA IFinalled
221830105040
$256.65
1
$35.00
$
91.04
$382.69
$2,703.34
$910.00
$1,127.96
$4,741.30