IV.4. Revise Legislative Policy 6-E – Finance Billing Collection Policy; Harkess (CR2016-080) 1
September 6, 2016 Council Report 2016-080
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 2016-056 revising Legislative Policy 6-E, Finance Billing Collection Policy.
Overview
While performing the annual certification of unpaid utility and accounts receivable invoices and
review of Legislative Policy 6-E it was noted that there may be some confusion as to how the
$100 fee is assessed. To alleviate any potential confusion section 2.03 was modified to
accurately reflect how the $100 fee is assessed. In addition, in the previous revision the last
sentence in section 2.02 detailing how interest was calculated on delinquent accounts receivable
was lost. This sentence was put back in the policy. Section 3.01 was also refined to require an
estimated reconnection date for garbage service as a condition for temporarily stopping service.
Previous practice required the customer to call in to re-establish service which on occasion did
not happen on a timely basis.
Supporting Documents
Resolution 2016-056
Policy 6-E with proposed revisions
______________________________________
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ none Budgeted: Y/N N X Source: customers
Related Documents (CIP, ERP, etc.): ___________ Notes: __________________
City of Hopkins
Hennepin County, Minnesota
RESOLUTION NO. 2016-056
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 the $100 fee applied to past due amounts
subject to certification and to require a reconnection date for temporarily
stopped refuse service,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby modifies, Sections 2.02, 2.03 and 3.01 of Policy 6-E, entitled the Finance Billing
Collection Policy, as follows:
2.02: Add the sentence: Interest will be charged on accounts receivable
invoices that are 30 days or more past due at a rate of 18% per year or
1½% a month.
2.03: Changed to read: Delinquent utility and property related accounts
receivable amounts dated prior to June 1st of the year will be processed
for assessment certification on a yearly basis to Hennepin County.
Written notice shall be mailed to each debtor during the month of June
advising them of this policy. There shall be a $100 service charged added
on each utility or accounts receivable account remitted to assessing for
certification to their property taxes.
3.01: Add to the last sentence: and provide an estimated reconnection date.
Adopted by the City Council of the City of Hopkins this 6th day of September 2016.
By______________________________
Molly Cummings, Mayor
ATTEST:
_____________________________
Amy Domeier, City Clerk
1
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 no later than the third working day of the month
and are due the 20th of the month or the next business day if the 20th falls on a weekend or
federal holiday. Payments received within three (3) days following the due date will not
be charged a penalty. A penalty of 10% of the water, sanitary, sewer, storm sewer and
refuse charges for the current month 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 or 1½ % a month.
2.03 Certification of Delinquent Amounts. Delinquent utility and property related accounts
receivable amounts dated prior to June 1st 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 them of this policy.
There shall be a $100 service charge added on each such utility or accounts receivable
account or accounts receivable invoice account remitted to assessing for certification to
their property taxes.
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 and
provide an estimated reconnection date.
Established: 1982 (Res. 82-3039)
Incorporated into Legislative Policy: June, 1998
Revised: Sept 2006 (Res. 2006-052)
Revised: August 2010 (Res. 2010-042)
Revised: September 2014 (Res 2014-045)
Revised: April 2015 (Res. 2015-040)