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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 25, 2025 3 3. AGENDA ITEMS A. Utility Billing Rate Discussion Finance Director Yang said the City charges 8% late fee penalty when utility accounts are over 30-days past due. This is a one-time penalty that is charged against the utility account's outstanding invoice amount. The City has waived late penalties on a case by case basis, based on some common themes included in the agenda packet information. The City doesn't have a formal policy on waiving these late fees. Based on Staff inquiries to neighboring cities, that is the case across the cities. Staff is seeking discussion and direction from City Council regarding the existing ordinances and the City's current practices for waiving late fees on utility accounts. Staff received an inquiry about extending the 30-day past due delinquent period for utility bills. Staff is seeking further direction from Council on if we should consider a longer delinquent period, such as 45-days or 60-days. There is an outstanding request to waive two quarters of late fees. Council is requested to have a discussion before any decision is made to move forward with that or deny the request. Mayor Grant is surprised neighboring cities charge 10%. He thought 8% was high. Councilmember Rousseau asked where would residents learn that they can make that request for a one-time accommodation. Finance Director Yang said residents usually call after seeing the late fee in their invoice. Councilmember Rousseau asked if it is stated anywhere that they can call and make the request. Finance Director Yang said that is not on the invoice. Councilmember Rousseau asked how often residents call? She is aware of a business that has done this in the past. Businesses have different resources than a resident. How do residents know there is any flexibility? Finance Director Yang can't speak to how they know. She sees a handful of requests come in on a quarterly basis. There are maybe 5-10 each quarter. Councilmember Rousseau asked if the requests come from the same neighborhoods? Finance Director Yang said it is random. Councilmember Weber is surprised that other cities don't have official policies. He asked if that is correct. Finance Director Yang confirmed. It is a common practice but there is no policy that states how or if fee can be waived. Councilmember Weber said several cities do have official policies. Finance Director Yang said unless it says "policy in place" the cities on the list didn't indicate whether a policy or a common practice.