04-27-2020 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION DRAFT 5 wonders if he should recuse himself. Administrator Karlson said if that person has no 180 fiduciary responsibility there is no conflict. 181 182 Mayor Rafferty indicated that this matter will be coming forward to the council at the end 183 of April and Councilmember s should feel free to contact staff for more information in the 184 meantime. 185 186 4. Utility Late Fees – Finance Director Cotton explained that she is requesting that 187 the council consider temporarily suspending utility late fees. The City has received a 188 number of calls from residents who are looking at financial hardships and who are asking 189 what will happen if they don’t pay their bills. T he late fee is 10% of charges. She 190 explained that there would be a revenue impact to the City. She is recommending the 191 suspension for a period of three months. 192 193 Mayor Rafferty asked for an explanation of what happens when the bills come due. Ms. 194 Cotton reviewed the billing process – if the quarterly bill isn’t paid, the next quar terly bill 195 would only be the amount due. If another quarterly period passes with no payment, the 196 10% late charge would be added. An extension to the late charge suspension could be 197 considered in the future as needed. Mayor Rafferty indicated he is supportive of the 198 change. 199 200 Councilmember Cavegn asked if the grace period would be for the current time or future 201 and Ms. Cotton said it would cover anyone having a bill due from t he end of March 202 through May. Councilmember Cavegn asked how this will be advertised (web, mailing?). 203 Ms. Cotton indicated that she wanted to get council input and, if authorized to proceed, 204 would add information to the website. 205 206 Councilmember Stoesz noted that fees are in the City fee schedule; would this require an 207 ordinance change? Ms. Cotton said that she has administrative authority to waive late 208 fees. When Councilmember Stoesz asked about a permanent reduction in the late 209 charge, Ms. Cotton noted that the yearly revenue impact would be substantial. 210 Councilmember Stoesz supports the change. 211 212 The council concurred with the staff recommendation. 213 214 5. Bond Issuance for Water Tower No. 3 – Finance Director Cotton and Terri 215 Heaton of Baker Tilly reported. A PowerPoint presentation was reviewed that included 216 information on the Water Tower No. 3 project financing: 217 218 - How a bond sale is conducted (in preparation of this one); 219 - Nuances related to current pandemic emergency situation; 220 - Water Tower (project information); 221 - Financing would be repaid by t runk utility fees over 15 years; 222 - Utility bond would be appropriate; 223 - Lowest interest rates with general obligation bond; 224