HomeMy WebLinkAboutItem 07Date:
La�IP
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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 2011 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 19,
2010 until December 31, 2011.
Minnesota Statutes require the City to call a public hearing for the certification process. Public notice of
the hearing has 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?
• Historical perspective of certifications.
Supporting Information
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.
er,
Financial Impact: Certification minimizes losses due to bankruptcy Budgeted: N/A
Related Documents (CIP, ERP, etc.):
Notes: __
Primary Issues to Consider
Is certification process the most efficient method of collecting delinquent accounts?
In the staffs 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.
Historical perspective of certifications.
Ending
Ending
Number of
Date
Amount
Accounts
Apr -10
$
149,603
831
Oct -09
$
119,384
732
Apr -09
$
128,087
675
Oct -08
$
134,345
788
Apr -08
$
108,123
604
Oct -07
$
86,090
594
Apr -07
$
86,149
539
Oct -06
$
77,821
572
Apr -06
$
68,106
476
Oct -05
$
51,460
355
Apr -05
$
47,395
298
Oct -04
$
55,493
322
Apr -04
$
43,612
261
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION CERTIFYING UNPAID WATER, SANITARY SEWER, STORM SEWER
AND STREET LIGHTING CHARGES TO THE COUNTY TREASURER/AUDITOR TO
BE COLLECTED WITH OTHER TAXES ON SAID PROPERTY
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.
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. 1273 in the amount of $233.411.22 relating to the certification
of delinquent utility bills is calculated as follows:
Total uncollected amount delinquent $ 149,603.48
Service charge $ 29,085.00
Interest $ 54,722.74
Total certified $ 233,411.22
A copy of which is attached hereto and made a part hereof, is hereby accepted
and shall constitute a special assessment against the lands named therein,
2. The amounts certified shall bear interest from the date of this resolution until
December 31, 2011 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, 2010, 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 19th day of April 2010.
CITY OF LAKEVILLE
Holly Dahl, Mayor
ATTEST:
Charlene Friedges, City Clerk
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