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CR 10-074 Finance Billing Collection Policy• August �` © 17, 2010Council Report 2010-074 1, p 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 2010-042 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. Overview In 1982 the City of Hopkins adopted a policy regarding the collection and assessment of bills. At that time the service charge for bills that are assessed was set at $35.00. In 1991 this charge was increased to $50.00. Staff is proposing that the charge be increased to $100.00. The proposed charge is designed to cover all the City's costs after the first bill is sent out. The Finance Department is committed to working with any resident who has a temporary • problem paying a bill. Arrangements such as payment plans can and are made in order to avoid having delinquent bills assessed. In addition, notices are sent out prior to certification allowing for another opportunity to pay a bill before incurring the assessment fee. • Supporting Documents • Resolution 2010-042 • Policy 6-E with proposed revisions Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ 3-4,000 Budgeted: Y/N N X Source: customers Related Documents (CIP, ERP, etc.): Notes: 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 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. 2.03 Certification of Delinquent Amounts. Delinquent amounts dated prior to June 1" 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 $50.00 $100 service charge added on each such utility account or accounts receivable invoice. • 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) 2 City p of Hopkins Hennepin County, Minnesota RESOLUTION NO. 2010-042 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 increase the service charge for delinquent amounts that are to be assessed, 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." Adopted by the City Council of the City of Hopkins this 17th day of August 2010. III ATTEST: Terry Obermaier, City Clerk Gene Maxwell, Mayor