HomeMy WebLinkAboutItem 06.dDate September 7, 2010
Proposed Action
The certification process affects about 2% of Lakeville customers.
Primary Issues to Consider
Supporting Information
Dennis "Feller, finance Director
Item No.
Resolution Calling Public Hearing to Certify Unpaid Utility Charges to the County
Auditor- Treasurer
Staff recommends adoption of the following motion: Move to approve Resolution
calling Public Hearing to Certify Unpaid Utility Charges to the County Auditor —
Treasurer.
Passage of this motion will result in public hearing on October 18, 2010 to certify
delinquent utility bills 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 October 18, 2010 until December 31,
2011.
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.
• 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.
® 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 City Council at the public hearing.
Financial Impact: Certification minimizes losses due to bankruptcy Budgeted: N/A
Related Documents (CIP, ERP, etc.):
Notes:
CITY OF LAKEVILLE
RESOLUTION No
RESOLUTION CALLING PUBLIC HEARING '1 O CERTIFY
UNPAID UTILITY CHARGES TO THE COUNTY AUDITOR -
TREASURER
WHEREAS, Minn. Stat. 444.075, Subd. 3 authorizes the City to certify unpaid
sanitary sewer, water, street lights and storm sewer charges ( "utility charges ") to the
County Auditor - Treasurer for collection with taxes; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Lakeville:
1. A public hearing shall be held on the 18th day of October, 2010 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.
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 7 day of September 2010 by the City
Council of the City of Lakeville.
ATTEST:
Charlene Friedges, City Clerk
CITY OF LAKEVILLE
By:
Holly Dahl, Mayor