3.6 Utility Billing Delinquent Penalties
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 27 June 2022
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.6 – Utility Billing
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of an ordinance amending the City Code regarding utility billing late fees.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
Section 8-1-9.A of the City Code establishes a late penalty for delinquent utility billing accounts. The
current late fee penalty is ten (10) percent of the past due amount assessed each month. For the local
emergency declared during the COVID-19 pandemic, the City Council lowered the late fee penalty to five
(5) percent of the past due amount. The City Council discussed the late payment penalty amount at a
special meeting on 13 June 2022. City staff was directed to prepare an amendment to the City Code to
continue five percent as the late fee penalty going forward.
SUPPORTING DOCUMENTS ATTACHED:
▪ Ordinance 2022-12
▪ Summary of Ordinance 2022-12
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Ordinance 2022-12 amending the City Code related to utility billing and approve
publication in summary form.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
1
ORDINANCE NO.: 2022-12
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE REGARDING UTILITY BILLING.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 3-1-2.J of the City Code (Fee Schedule – Public Utilities) is hereby amended to
add the following row:
Municipal Utilities – Delinquent
Account Late Fee
Subsection 8-1-9.A 5 percent on the unpaid portion of the
account
Section 2. Section 8-1-9.A of the City Code (Municipal Utilities – Delinquent Accounts) is hereby
amended to read as follows:
A. Late Payment Fee: A late payment fee of ten percent (10%) as established by Section 3-1-2.J of
this code shall be assessed on the unpaid portion(s) on all accounts when payment of the balance
is not postmarked or received by the due date. The unpaid portions and late payment penalty
shall be due immediately. Additional late payment fees on the past due amount shall be added
each billing period the account is delinquent.
Section 3. This Ordinance shall become effective immediately upon its passage and publication.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 27th day of June, 2022.
CITY OF OTSEGO
BY:_____________________________
Jessica L. Stockamp, Mayor
ATTEST:______________________________
Audra Etzel, City Clerk
1
SUMMARY OF ORDINANCE NO.: 2022-12
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE REGARDING UTILITY BILLING.
NOTICE IS HEREBY GIVEN that on June 27, 2022, Ordinance 2022-12 was adopted by the City
Council of the City of Otsego, Minnesota.
NOTICE IS FURTHER GIVEN that the ordinance adopted by the City Council amends City Code
pertaining to establishment late fee penalties on delinquent municipal utility accounts.
ADOPTED by the City Council of the City of Otsego this 27th day of June, 2022.
CITY OF OTSEGO
BY: Jessica L. Stockamp, Mayor
ATTEST: Audra Etzel, City Clerk
Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, Subd.10, this Ordinance is published in
summary form. Complete copies of the ordinance are available for inspection by contacting the City
Clerk, Otsego City Hall, 13400 90th Street NE, Otsego, Minnesota 55330 during regular office hours.