Laserfiche WebLink
REQUEST FOR COUNCIL ACTION <br />COUNCIL MEETING <br />DEC 1 3 1999 <br />CITY OF OhOWO <br />DATE: Decembers, 1999 <br />ITEM NO:>1 <br />Department Approval: y li Administrator Reviewed: Agenda Section: <br />Name Tom Kuehn City Administrator's <br />Title Finance Director Report <br />Item Description: <br />Changes in Utility Billing Late Fee Policy <br />An adjustment to the utility bills penalty rate and to the time period for penalty was <br />omitted from the 2000 Fee Schedule Ordinance presented to Council at the November 22, <br />1999 council meeting. <br />The current penalty rate is 15% and the current time period for payment of the utility bills <br />before incurring the penalty is 45 days from the billing date, with all payments <br />postmarked the due date as considered on time. The penalty is currently applied only to <br />the current quarter bill. It is recommended that f penalty rate be reduced from 15% to <br />8% and be applied to the unpaid balance, nc ust the current quarter. It is also <br />recommended that the date due from the billing e be reduced from 45 days to 30 days <br />and that payments must be received by the due < . to be considered on time. <br />The penalty rate of 8% is more in line with .lalty rates at most other municipalities, <br />with most being in the 10% range. It is anti ated that the reduction in the penalty rate <br />will not result in significantly lower penalt’ m total for those customers who habitually <br />pay late or do not pay at all. However, f ihe customer who occasionally pays late, an <br />8% penalty is not so onerous and is mi . easier to accept. The 30 day payment time <br />period will speed up the cash flow, is r .h more the norm in terms of the grace period at <br />other municipalities, and may result a higher collection rate because the bill is less <br />likely to be forgotten. <br />COUNCIL ACTION REQUEST ): <br />Motion to amend the penalty fo ’ ae payment of utility bills from - 15% after 45 days <br />from the billing date (applied or to the current quarter) to - 8% after 30 days from the <br />billing date (applied to the to unpaid balance); and to include this change in the <br />ordinance adopting the City'; .-ee Schedule for 2000 and Summary Ordinance for <br />publication.