HomeMy WebLinkAboutCC 12-07-2010 Unpaid Utilities COMMO
MAYOR & COUNCIL COMMUNICATION
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DATE: 12/07/2010
REGULAR Public Hearing ITEM #: 10 MOTION Resolution No. 2010-067 AGENDA ITEM: Public Hearing – Delinquent Water and Sewer Utility Bills SUBMITTED BY: Tom Bouthilet, Finance Director THROUGH: Bruce Messelt, City Administrator
REVIEWED BY: City Financial Advisors Dave Snyder, City Attorney
SUMMARY AND ACTION REQUESTED: The City Council is respectfully requested to convene a Public Hearing on Delinquent Water and Sewer Utility Bills. Following receipt and considerations of public comment, the City council is requested to affirmatively consider approval of Resolution 2010-067, authorizing certification to the Washington County Auditor for
unpaid Utility bills. The recommended motion to act on this is as follows:
SUGGESTED “Move to approve Resolution 2010-067 authorizing certification to the
MOTION: Washington County Auditor for unpaid utility bills.”
BACKGROUND INFORMATION: The City of Lake Elmo has the legal and fiduciary authority by, Minn. State Stat. § 444.075 subd. 3, and pursuant to enabling City Ordinance, to assess property owners for unpaid utility services. Affected homeowners with past due balances were sent notification of the proposed assessment. A Notice of Public Hearing for unpaid utilities
was published in the Oakdale/Lake Elmo Review on November 17, 2010.
STAFF REPORT: The City operates water and sewer activities as a public utility, similar to those offered by a private business or enterprise. As such, the City maintains separate financial
records, called Enterprise Funds, to account for such City operations.
Generally, these Public Utility services are provided to specific customers and the revenues typically accrue from the services provided or via pre-determined user fees (in the case of water and wastewater, volume-based user fees). Revenues derived are used to pay for the operations,
maintenance and capital expenses emanating from the specific enterprise activities.
City Council Meeting Delinquent Water & Sewer Utility Bills - Public Hearing
December 7th, 2010 Regular Agenda Item # 10
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FINANCIAL CONSIDERATIONS: Tonight’s certification process is to facilitate assessment to property owners for unpaid Public Utility services in order to assure eventual collection. All delinquent accounts presented tonight have been reviewed for any errors or mistakes and represent only those customers who have clearly not paid for services and product provided.
Failure of the City to assess for these services already provided is the public sector equivalent of writing off uncollected revenues, which must then be made up for by either higher water and wastewater fees for other public utility customers who do pay their bills, or all of the City’s residents through higher property taxes.
Even after proposed City Council action tonight, homeowners will still have until December 15th, 2010 to pay the balance without additional fees. Payment received after December 15th, 2010 will be subject to an eight percent interest charge on the balance due, or a fee of $25.00, whichever is greater.
RECOMMENDATION: Based upon the above background information and staff report, it is respectfully recommended that, upon completion of the Public Hearing and due consideration of public comment, the City Council affirmatively consider adoption of Resolution 2010-067, authorizing certification to the Washington County Auditor for unpaid utility bills. The
appropriate motion to do so is as follows:
SUGGESTED “Move to approve Resolution 2010-067 authorizing certification to the MOTION: Washington County Auditor for unpaid utility bills.”
Alternatively, the City Council does have the authority to table this item for consideration on December 14th, but must take action then in order to complete the certification process with Washington County by December 15th, 2010. The Council may also further discuss, deliberate and/or, if appropriate, amend the recommended motion prior to taking action, including
removing some or all of the proposed assessments. If the Council elects to revise the proposed
action, the appropriate motion of the Council following such discussion would be:
“Move to approve Resolution 2010-067 authorizing certification to the Washington County Auditor for unpaid utilities bills [as amended at tonight’s meeting].”
ATTACHMENTS:
1. Resolution 2010-067
2. Exhibit A
City Council Meeting Delinquent Water & Sewer Utility Bills - Public Hearing
December 7th, 2010 Regular Agenda Item # 10
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SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation of Item ......................................................Finance Director
- Questions from Council to Staff ..................................... Mayor & City Council
- Opening and Conduct of Public Hearing ............................... Mayor Facilitates
- Closing of Public Hearing ...................................................... Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion/Comments............................................................. Mayor Facilitates
- Action on Motion ............................................................ Mayor & City Council