CCP 10-26-1998 - Laserfiche WebLink

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-- CITY OF ARDEN HILLS . MEMORANDUM DATE: October 6, 1998 TO: Brian Fritsinger, City Administrator FROM: Terrance Post, City Accountant @J SUBJECT: Certification of Delinquent Utilities Backeround The City of Arden Hills has historically followed a policy of annually certifying delinquent utility bills to following year property taxes as a means of collecting delinquent utility accounts instead of a water shutoff policy. Procedures for collections of delinquent accounts are prescribed in Code of Ordinances, Sections 28-58 (water), 28-129 (sanitary sewer), and 28-172 (surface water management). Delinquency Status Staff has attempted to more actively manage delinquent accounts with only modest success. There appears to be a base ofrepeat customers who are certified year after year. Perhaps they . consider this annual delinquent special assessment to be additional property taxes, and incorrectly take the corresponding tax deduction on their personal tax returns. The attachment to the resolution clearly shows the level of repeat customers. Historical Certification Trend Data Number Certification with Penalty Levied in 1992 Payable in 1993 51 accounts $18,795.97 Levied in 1993 Payable in 1994 58 accounts 19,366.00 Levied in 1994 Payable in 1995 45 accounts 18,919.00 Levied in 1995 Payable in 1996 44 accounts 19,977.74 Levied in 1996 Payable in 1997 37 accounts 16,862.32 Levied in 1997 Payable in 1998 59 accounts 25,138.66 Proposed Levy in 1998 Payable in 1999 42 accounts 18,498.96 With the 1998 budgeted utility billed revenues of$2,046,000, the certification accounts represent approximately 0.9% of this total, and approximately 1.7% of the 2,540 total utility customer base. - Recommendation Council should consider adopting Resolution #98-64 under the Consent Calendar at the October 26, 1998 Regular Council meeting which "Adopts and Confirms Special Assessments for Delinquent Utilities." Enclosure .