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HomeMy WebLinkAbout5G Assess for Unpaid Special Charges o � Pxro�, ti � U tr� 4646 Dakota Street SE �INiVESO� Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 23, 2013 AGENDA #: 5G PREPARED BY: CATHY ERICKSON, ACCOUNTING MANAGER PRESENTER: JERILYN ERICKSON, FINANCE DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL FOR 2013 UNPAID SPECIAL CHARGES, AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE 2013 UNPAID SPECIAL CHARGES DISCUSSION: Introduction The purpose of this agenda is for the City Council to order preparation of an assessment roll and to set an assessment hearing date for 2013 Unpaid Special Charges. These charges include costs and charges incurred by the City for, snow removal and mowing of nuisance properties, false alarms and unpaid utility bills. Hi StOry State Statute 429.101 states that the governing body of any municipality may provide for the collection of unpaid special charges as a special assessment against the property benefited for all or any part of the cost of: 1) Snow and weed elimination from streets or private property 2) The recovery of any disbursements for payment of utility bills and other services, even if provided by a third party Current Circumstances In order to recover unpaid special charges the City must follow State Statute 429 procedures. Those procedures provide that the City must adopt a resolution declaring the unpaid special charges to be assessed and establish a date for the assessment hearing for those charges. The assessment shall include the annual principal, a delinquent assessment administration charge of $30 plus interest calculated from the date of the adoption of the assessment resolution to the end of 2013 plus twelve (12) months of the next year and shall bear interest at the rate of four and a quarter percent (4.25%) per annum. In the case of the special charges being considered as part of this resolution property owners have been provided the opportunity to pay the charges prior to the assessment. Conclusion The City Council should order preparation of the assessment roll and declare the costs to be assessed and establish the date of the assessment hearing in accordance with State Statute 429. ISSUES: In order for the City to recover unpaid special charges incurred in 2013 it is necessary for the City Council to proceed with this process. FINANCIAL The total unpaid special charges proposed to be assessed are: IMPACT: Delinquent Utility Charges $4,990.57 False Alarms Charges 450.00 Total Charges to be Assessed $5,440.57 This is the principal portion of the assessment. It does not include the administration charge or interest. The principal portion of the assessment in the two prior years is as follows: � 2012: $ 6,999.66 (included $1,362 for snow removal & weed abatement) • 2011: $ 11,038.17 (included $6,450 for Oak Wilt) ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the 2013 Unpaid Special Charges, and establishing October 28, 2013 for the assessment hearing date. 2. Deny the Resolutions for a specific reason and provide staff with direction. Table this item for a specific reason. RECOMMENDED Alternative #1 MOTION: 2