5. ChristineCITY OF HOPKINS FINANCE DEPARTMENT
MEMORANDUM
Date: February 5, 2015
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Utility Billing Due Date
The current Finance Billing Policy 6E provides for a grace period of 20 days from the day we
mail the utility bills. Utility bills are currently mailed the 3rd working day of the month so the
bills would be mailed as early as the 3rd and as late as the 6th. With the bills due 20 days later —
or more depending weekends and holidays it can provide for a very short turn around to
calculate, print and prepare bills for mailing.
This was the schedule for 2014
holiday 27/28 and weekend 29/30
I would like to propose that bills be prepared the last week of the month and have them mailed
within 2 days of the end of the month. I'd like to further propose a firm due date of the 20th or
next business day. This will allow ample time for applying penalties and calculating the new
bills. This will shorted up the grace period by approximately 5 days.
I conducted an inquiry through the financed listsery on the MGFOA and those results are
attached. There is no clear policy across cities.
Bills
Mailed
Due
Date
Last working
Day of
Month
No. of days
from due date
to last working
day of the
month
January
1 6
27
1 31
4
February
5
25
28
3
March
5
25
31
6
April
3
23
30
7
May
1 5
27
30
3
June
4
24
30
6
July
3
23
31
8
August
5
25
29
4
September
4
24
30
6
October
3
23
31
8
November
5
25
26
1
December
3
23
31
8
holiday 27/28 and weekend 29/30
I would like to propose that bills be prepared the last week of the month and have them mailed
within 2 days of the end of the month. I'd like to further propose a firm due date of the 20th or
next business day. This will allow ample time for applying penalties and calculating the new
bills. This will shorted up the grace period by approximately 5 days.
I conducted an inquiry through the financed listsery on the MGFOA and those results are
attached. There is no clear policy across cities.
Grace Periods for Utility Bills
City/Jurisdiction
No of
Days
Due
Date
Comments
Hutchinson
12
27th
bill on 15th, due on 27th
Spicer
20
20th
Mail on 1st - due by 20th - previously due on 15th
Crystal
20th
Penalties applied 5 days later
Cambridge
12
12th
bill last day of the month
Chanhassen
21
21st
Billed last day of month - due 21st of next. 3 day grace period for penalties
Savage
20th
due on the 20th
Zimmerman
30
bill quarterly - 30 day grace period
Roseville
30
EOM
bill on the 1st - due last day
Inver Grove Heights
20th
bills are processed anytime after penalties are applied
Dayton
30
10th
bill on the 10th - due 10th of next month
Nashwauk
25
25th
bills 1st of the month
Oak Park Heights
30
9th
bill on the 10th - due 9th of next month
St. Michael
30
Bill EOM - due in 30 days
North Mankato
20
10th
Bill on 20th - due on 10th of next month
Kenyon
15-16
10th
Bill between 22 -24th and due 10th of next month
Minnetonka
21st
Bill on last Friday of month - due 21st of next month
Golden Valley
25th or 28th Bill on 3rd day of month, due on 25th for commercial; 28th for residerntial
Brooklyn Park
20
Per city ordinance
Farmington
EOM
Mailed first week of month - due EOM
St. Paul Regional Water Services
15
Bill monthly & quarterly and do readings & billings every day.
Shoreview
35
5th
Billed quarterly with due date about 35 days later on the 5th of the second month following billing
Burnsville
20
22-24
Billed at EOM, and allow about 3 weeks for due date.
Waconia
20
21st
Mail on 1st - due on 21st
St. Peter
15
15th
Mail on 1st - due on 15th or next business day
Pine Ciyt
22
22nd
Mailed last day ofof th month and due on the 22nd.
Zimmerman
15
15th
Mailed last day of the month and due on the 15th.
Prior Lake
21
21st
Mailed on last day of the month and due on the 21st.
Maple Grove
10th
Mailed 2nd week of the month and due on the 10th of the following month
Montevideo
10
5th
Bill on 20th and due on the 5th of next month
Rosemount
20th
Bills sent out during the last week of the month
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
date. Interest will be charged on accounts receivable invoices that are 30 days or more
past due at a rate of 18% per year (1/z% per month).
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. If multiple properties share one accounts
receivable invoice each property shall be charged $100.
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)
Revised: Sept 2014 (Res 2014-045)
Legislative Policy Manual — Chapter 6-E 1