III.5. Adopt Resolution 2014-045, Revising Legislative Policy 6-E Finance Billing Collection Policy4 ° M
September 2, 2014 City of 11op i s Council Report 2014-089
REVISE LEGISLATIVE POLICY 6-E
FINANCE BILLING COLLECTION POLICY
Proposed Action
Staff recommends approval of the following motion: Move that the Hopkins City Council adopt
Resolution 2014-045 revising Legislative Policy 6-E, Finance Billing Collection Policy.
Approval of this motion will revise the language in Policy 6-E in order to update the City's
policy on Assessment Fees and to authorize interest charges on past due miscellaneous accounts
receivable invoices.
Overview
In 1982 the City of Hopkins adopted a policy regarding the collection and assessment of bills.
The $100 service fee charged is designed to cover the city's costs of mailing and publishing
notices for the assessments. The fee was designed to be a per parcel based fee not a per invoice
fee, therefore the policy needed to be clarified. In addition, staff would like the authority to
charge interest on past due miscellaneous accounts receivable at the rate of 18% per annum or
11/2% per month on invoices 30 days or more past due. Currently we have a significant number
of customers who do not pay their invoices until we begin the assessment process. It is costly to
send out monthly invoices and hopefully charging interest will motivate them to pay their
invoices timely.
The Finance Department is committed to working with any resident who is experiencing
financial difficulties. Arrangements such as payment plans can and are made in order to assist
customers in those situations.
Supporting Documents
• Resolution 2014-045
• Policy 6-E with proposed revisions
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ undetermined Budgeted: Y/N N X Source: customers
Related Documents (CIP, ERP etc.): Notes:
City of Hopkins
Hennepin County, Minnesota
RESOLUTION NO. 2014-045
Revising Legislative Policy 6E — Finance Collection Billing Policy
WHEREAS, the City Council of the City of Hopkins has approved a document entitled
the Legislative Policy Manual to provide uniform guidelines on City policies
so that actions taken are consistent and fair; and
WHEREAS, the City Council has established Legislative Policy 6-E in order to establish
procedures to ensure the collection of utility bills and accounts receivable
invoices; and
WHEREAS, the City Council has determined that the existing policy needs to be revised
in order to clarify how the $100 service charge is to be applied to
delinquent accounts that are assessed and to provide for interest charges
on miscellaneous accounts receivable that are 30 days or more past due,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby adopts the following changes to Legislative Policy: "There shall be
a $100.00 service charge added on each such utility account or accounts
receivable invoice per parcel assessed and 18% per annum interest (1'/2 %
per month) on miscellaneous accounts receivable invoices 30 days or more
past due."
Adopted by the City Council of the City of Hopkins this 2nd day of September, 2014.
Eugene J. Maxwell, Mayor
ATTEST:
Amy Domeier, City Clerk
POLICY 6-E
FINANCE BILLING COLLECTION POLICY
1. PURPOSE
1.01 The purpose of this policy is to establish procedures to ensure the collection of utility
bills and accounts receivable invoices.
2. POLICY
2.01 Utility Bills. Utility bills will be sent out on the third working day of the month and are
due in 20 days. Payments received in the mail will not be charged a penalty if
postmarked before the due date. Payments received in the night deposit by 8:OOAM the
day after the due date will not be charged a penalty. A penalty of 10% of the water,
sanitary, sewer, storm sewer and refuse charges will be charged if the bill becomes
delinquent.
2.02 Accounts Receivable Invoices. Invoices for tree removal, rental of city space, repairs to
City property, and other miscellaneous charges are billed and due 20 days from the bill
ate Interest wffl be char�� �2D...accou:u....ts receMiWe �nvo�ces that are
30 (M.Y
2.03 Certification of Delinquent Amounts. Delinquent amounts dated prior to June lst of the
year will be processed for assessment certification on a yearly basis to Hennepin County.
Written notice shall be mailed to each such debtor during the month of June, advising
him or her of this policy. There shall be a $100 service charge added on each such utility
account or accounts receivable invoice. 11'....nu hilk pjj�:�perfles slurs one accounts
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3. SERVICE DISCONTINUATION POLICY
3.01 Refuse service may be discontinued for a period of no less than thirty (30) days. The
resident must contact the City and make a request for a discontinuation of service.
Established: 1982 (Res. 82-3039)
Incorporated into Legislative Policy: June, 1998
Revised: Sept 2006 (Res. 2006-052)
Revised: August 2010 (Res. 2010-042)
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