Agenda Date: 03/17/2015
Subject:
Title
Ordinance on second reading amending section 7-8-11 of the city code regarding storm drainage fee delinquency charges.
Body
Presented By:
Doug Farmen, Finance Director
POLICY QUESTION:
Does city council support changing the delinquency charges for outstanding storm drainage account balances?
BACKGROUND:
The city's 25 percent delinquency charge for storm drainage utility account balances (outstanding balances after August 15th due date) was in effect for decades. In January 2012, staff proposed reducing the 25 percent rate to 15 percent to provide a more reasonable charge and lessen the impact on staff. However, the city council proposed and implemented a 'tiered' approach: 10 percent on balances owed after August 15, an additional 10% on balances owed after September 15, and an additional 5 percent on balances owed after October 15, for a maximum total of 25 percent.
STAFF ANALYSIS:
'Tiered' Approach (adopted in 2012)
The new due dates and delinquent charges have a three-year history with these results:
* In 2014, staff received approximately 500 phone calls (more than 1 percent of accounts) from customers asking questions about the delinquent dates. This is confusing for customers and consumes valuable staff time.
* Considering all of the charges and account adjustments, the city's limited staff cannot send out bills after each delinquent date, making it difficult to provide timely account balances to customers.
* There is a greater chance for software and manual errors.
* If city staff waives a delinquent charge (due to a customer's prompt payment history), the multiple fees result in a higher volume of manual account adjustments.
* The city still receives complaints that the combined 25 percent delinquent charge is too high.
Staff recently surveyed other municipal utility services:
Jurisdiction (may include water utility service)
Late Fee Policy
Arvada
$10 after 12-da...
Click here for full text