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AGENDA ITEM - 3A <br />-ADEN HILLS <br />MEMORANDUM <br />DATE: August 25, 2025 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br />FROM: Joua Yang, Finance Director <br />SUBJECT: Utility Billing Rate Discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />Provide feedback and direction to staff on Utility Billing Late Fees. <br />Background <br />Per City Ordinances 1000.20 (Water) and 10 10. 11 (Sewer) Rates and Charges, and 10 10. 14 <br />Surface Water Management Utility, when utility accounts are over 30 days past due, the City <br />assesses an 8% late penalty. This is a one-time late penalty that is assessed against the utility <br />account's outstanding invoice amount. The City has, historically, waived late penalties on a case - <br />by -case basis, with the below common themes: <br />• Auto -Pay was rejected due to an expired credit card; however, auto -pay was reinstated <br />and payment was made at time of waiver request <br />• One-time late fee, history is in good standing and no late fee adjustments were made <br />within the past few years; payment was made at time of waiver request <br />• City internal billing error (i.e. set-up error, misapplied receipts) <br />• Change in account owner <br />In addition to the one-time late penalty, all accounts over 90 days past due are assessed an <br />additional 8% delinquent penalty, and is certified quarterly with Ramsey County. Collection <br />occurs with the subsequent year's property taxes. <br />The City does not have a formal policy for waiving late fees assessed on utility accounts. Staff <br />inquired with neighboring cities regarding formal policies and/or practices, with the below findings: <br />Page 1 of 2 <br />