VII.2. Emergency Ordinance Authorizing Late Penalty Waivers for Utility Bills; BishopApril 21, 2020 Council Report 2020-027
EMERGENCY ORDINANCE AUTHORIZING LATE
PENALTY WAIVERS FOR UTILITY BILLS
Proposed Action.
Staff recommends that the Council approve the following motion: Move to adopt Ordinance 20-
1151 An Emergency Ordinance Authorizing Late Penalty Waivers During or Immediately
Following a State or Local Emergency.
Overview:
Hopkins residents and business owners are experiencing financial stress as a result of COVID-
19. The proposed ordinance would provide relief from penalties associated with delinquent
utility accounts. The planned duration is for invoices issued from April 1, 2020 through June 1,
2020 and could be extended. During this time, utility customers unable to make their regular
payment by the due date will not be assessed a 10% late penalty as outlined in City Code
Sections 34-25, 40-25 and 40-251.
The relief applies to the 10% late penalty only; it does not apply to any previously assessed fees.
Payment of the balance for all utility services will still be required. Balances can be paid at any
time. The City will continue to certify delinquent amounts based on City policy. Delinquent
amounts dated prior to June 1, 2020 will be certified as assessments and payable with 2021
property taxes. Delinquent amounts dated June 1, 2020 and later will be certified as assessments
and payable with 2022 taxes
In a normal month, approximately 8% of the total utility service charges are not paid on time and
receive a penalty. In 2019, the average penalties collected per month was $4,500. Penalties
accounted for 0.8% of total revenue in the water, sewer, storm sewer and refuse utility funds.
The City of Hopkins sends invoices to approximately 3,500 utility customers each month for
water, sewer, storm sewer and refuse service (not all customers receive all services). The typical
cycle of a utility bill is:
• 1st of the Month – Invoices are finalized and available electronically. Invoices are
printed and mailed within 48 hours.
• 20th of the Month – Payment is due.
• 23rd of the Month – After a three-day grace period, penalties are applied for non-
payment. The penalty is 10% of the current balance due.
• Dates are adjusted for weekends and holidays.
The City last applied penalties on March 25. Penalties will be applied on April 23 and invoices
finalized on May 1.
Due to the time sensitive nature of the process, City Charter Chapter 3 allows the City Council to
adopt an emergency ordinance. The ordinance may be adopted after its first reading and take
effect immediately after its adoption. The City Attorney has reviewed the proposed ordinance.
Primary Issues to Consider
• The City has budgeted penalty collections of $11,000 during this time period.
Supporting Information:
• Ordinance 2020-1151
________________________________________
Nick Bishop, CPA
Finance Director
Financial Impact $11,000 Utility Revenue Source: Utility Funds
Budgeted: Y/N No Related Documents:2020 Annnual Budget
Notes:
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CITY OF HOPKINS
COUNTY OF HENNEPIN
EMERGENCY ORDINANCE NO. 2020-1151
AN EMERGENCY ORDINANCE AUTHORIZING LATE PENALTY WAIVERS
DURING OR IMMEDIATELY FOLLOWING A STATE OR LOCAL EMERGENCY
WHEREAS, on March 11, 2020, the World Health Organization determined that the
COVID-19 outbreak constitutes a pandemic. On March 13, 2020, President Trump declared a
national state of emergency as a result of the pandemic; and
WHEREAS, on March 13, 2020, Governor Tim Walz issued Emergency Executive Order
20-01 declaring a state of peacetime emergency to address the COVID-19 pandemic in Minnesota;
and
WHEREAS, on March 16, 2020, Mayor Jason Gadd signed Mayoral Declaration No.
2020-1, which declared the existence of a local emergency in the City of Hopkins, Minnesota. On
the same date, the Hopkins City Council adopted Resolution 2020-014, which extended Mayor
Gadd’s emergency declaration until further council action; and
WHEREAS, section 3.01 of the City Charter allows the City Council to adopt an
emergency ordinance if the emergency is defined in the preamble thereto and the ordinance is
adopted by at least four members of the City Council; and
WHEREAS, due to the ongoing pandemic, many businesses are unable to conduct
operations as usual and, accordingly, numerous individuals throughout the state have been either
laid-off or furloughed by their employers. As a result, many individuals and businesses are
struggling to meet their financial obligations, including the timely payment of city charges and
fees; and
WHEREAS, pursuant to express language contained throughout the Hopkins City Code,
including, for example, sections 34-28(c), 40-25, 40-251(i), the City is required to impose late
penalties against account holders that fail to make timely payments in full; and
WHEREAS, in an effort to provide immediate relief to those that are unable to pay their
utility bills or any other city fees in a timely fashion due to the ongoing emergency circumstances,
the City Council desires to adopt this emergency ordinance to allow the implementation of city-
wide waivers for various late penalties that are otherwise mandated by the city code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS
HEREBY ORDAINS AS FOLLOWS:
SECTION 1. During any ongoing state or local emergency or during the aftermath of such an
emergency, City staff shall have the discretion to waive late penalties that are otherwise required
to be imposed pursuant to the Hopkins City Code, including, but not necessarily limited to,
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sections 34-28(c), 40-25, and 40-251(i). During any period where such a waiver is deemed
appropriate for any particular fee type and therefore implemented by staff, it shall apply
collectively to all persons or entities that fail to make a timely payment of such fee type during the
temporary waiver period. Upon the eventual reinstatement of late penalties following any
temporary waiver period authorized herein, subsequent late penalties shall only be imposed on
charges that are incurred after the waiver period is lifted and such penalties shall not apply to any
past due charges that accumulated during the applicable waiver period.
SECTION 2. This emergency ordinance shall not be codified but rather shall be kept and
maintained with other uncodified ordinances on file with the city.
SECTION 3. The effective date of this emergency ordinance shall be the date of its adoption, as
set forth below.
Approved by the City Council of the City of Hopkins on this 21 day of April, 2020.
By: ____________________________
Jason Gadd, Mayor
ATTEST:
______________________________
Amy Domeier, City Clerk