CCP 12-09-2002 - Laserfiche WebLink

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. . . ~ ~ ~~HILLS MEMORANDUM DATE: Agenda Items 6.D December 4, 2002 TO: Joe Lynch, City Administrator Terrance Post, City Accountan@) Certification of Delinquent Utilities FROM: SUBJECT: Backl!round 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 the Municipal Code, 1000.20 Subd. 4D (water), 1010.11 Subd. 4 (sanitary sewer), and 1010.14 Subd. 11 (surface water management). Delinquent Status Staff has attempted to more actively manage delinquent accounts with some success. There appears to be a base of repeat 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 ofrepeat customers: Historical Certification Trend Data Number Certification with Penalty Levied in) 996 Payable in 1997 Levied inJ9?LJ.>ayable in 1998 ~_____~~^~~_~~__~~}_2.?8 ~~ableJ_!!JJ2~~~__ _ ^___ --1 Levied in 1999 Payable in 2000 Levied in 2000 Payable in 2001 i .... I,-eVi(':d i~;ioo1J>~'y~bl(':iIl2()CL2.___j l._._.I,-~vled i.'!}OO!Paya~l.e.i.ll.~QQ.3__.J ......_ $16,8~2.32 ~_.$.2:5.,1~~:!i~_ $18,498..:~L_ $17,164.95 _~_$2~,5.36.72 $14,753.76 -$18,078:46 -.-J ----~~---- 37 accounts 59 accounts 42 accounts ---------------- 39 accounts 41 accounts , 32 accounts..... L.}9 accounts With the 2002 budgeted utility revenues of $2,271,775, the certification accounts represent approximately 0.8% of this total, and approximately 1.1 % of the 2,568 total utility account customer base.