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• <br />• <br />LAW OFFICES OF <br />Burke and }Hawkins <br />SUITE 101 <br />JOHN M. BURKE <br />WILLIAM G. HAWKINS <br />BARRY M. ROBINSON <br />April 18, 1986 <br />Marilyn Anderson, Clerk <br />Lino Lakes City Hall <br />1189 Main Street <br />Lino Lakes, MN 55014 <br />299 COON RAPIDS BOULEVARD <br />COON RAPIDS, MINNESOTA 55433 <br />PHONE (6121784-2998 <br />Re: Municipal Water System Deposits <br />Dear Marilyn: <br />This letter is written in response to your request for my <br />opinion on the requirement the City pay interest on water <br />deposits that it has collected pursuant to City Code. <br />Minnesota Statute 325E.02 requires that any publicly owned water <br />company must pay interest on deposits in excess of $20.00 at the <br />rate of 6% a year. This interest must be paid at least annually <br />by direct payment or as a credit on bills. Upon termination of <br />service will all bills paid, the deposit must be returned within <br />45 days. <br />There is a question under this statute as to whether or not a <br />city is deemed a publicly owned company. It is my belief that <br />the intent of the law was to require a municipality to pay <br />interest on such security deposits. Accordingly the City should <br />pay interest as required by statute to avoid claim for violation <br />of the statute or discontinue collecting these charges. <br />illiam G. Hawkins <br />WGH:mk <br />