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Item No. 9 <br />Type of Business: WK <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Discussion of Delinquent Utility Bill Collection by <br />Special Assessment Instead of Water Shutoff <br />Meeting Date: July 7, 2003 <br /> <br />The staff has felt for some time that using water service shutoff as the primary means <br />of collecting delinquent utility bills is unnecessarily harsh for our residents and not <br />efficient for the City. The City’s auditors, MMKR, also recommended in their <br />management letter that the City consider switching to special assessment to the <br />property tax system as a primary means of collection of delinquent bills. <br /> <br />This is in fact the collection process currently in use by most other cities. We are one <br />of very few cities who routinely shut off water service. A quick survey of surrounding <br />cities found that Arden Hills, Fridley, New Brighton, Shoreview, and Spring Lake Park <br />rely on special assessments. Blaine has been shutting off water until recently, but is <br />now switching to special assessments. Only Columbia Heights uses water service <br />shut offs. I think this is representative of statewide practices. <br /> <br />Water service shut off is a harsh practice that works hardship on our residents by <br />depriving them of an essential service. Most people who experience the water shut <br />off are already in some other financial difficulty that is only made worse. Hard <br />feelings toward the City are generated and the potential for a confrontation is set up. <br />It is a time consuming and inefficient use of public works personnel. <br /> <br />The shut off process begins with a standard delinquent notice, followed by a letter <br />warning of the impending shut off, then a trip to the property by Public Works staff to <br />shut off the water service. After the delinquent bill plus a $75.00 fee are paid, Public <br />Works again goes to the property to turn the water back on. The $75.00 may not <br />really cover the total cost of the operation. <br /> <br />A special assessment process would begin with a standard delinquent notice, <br />followed by a letter notifying the property owner of a public hearing, followed by the <br />public hearing where the assessment would be certified, followed by a 30 day period <br />where the assessment could be paid without interest, after which the assessment <br />role would be forwarded to Ramsey County. <br /> <br />A special assessment certification fee, I would probably recommend $25 or $30 per <br />parcel, would be added to the delinquent balance at the time of the public hearing.