5.6. ERMUSR 10-08-2013 A4h
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski —Finance and Office Manager
John Dietz—Chair
Al Nadeau— Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
October 8, 2013 _ 5.6
SUBJECT:
Assessment of Electric
BACKGROUND:
Every fall we provide a list of assessments from the sewer and trash accounts to be assessed for the City,
and water accounts to be assessed for the utilities. These utilities have specific statutory authority to
certify delinquent charges to taxes. Minnesota Municipal Utilities Association(MMUA) and the League
of Minnesota Cities (LMC)have presented a way for an electric or gas municipal utility to certify
delinquent charges as well. Elk River Municipal Utilities would like to pursue assessing delinquent
electric charges, as discussed below. Having this assessment ability would reduce uncollectible amounts,
and ultimately keep the rates lower.
DISCUSSION:
In a publication from the LMC, published in January 2012 titled "Securing Payment of Utility Charges,"
there was a section directed to the certification of municipal gas and electric charges. The publication
stated a possible way to assess these charges was the combining of two laws; one passed in 1989 giving
towns the authority to certify unpaid service charges to the county auditor to be collected with taxes, and
a 1973 law amended in 2003 stating that cities have all the same powers as towns. Given that I)the LMC
has reviewed the law, evaluated it and came to the conclusion that assessment of electric charges is
allowable,2)the LMC is promoting the assessment of delinquent electric charges, and would therefore,
help defend any opposition to this position, and 3)there is minimal risk that this position would result in
any legal action being necessary, our legal counsel is prepared to help us pursue the assessment of
delinquent electric charges.
Through the amendment of our Meter Deposits and Related Policies: Collection of Unpaid Accounts, and
the amendment of City Ordinance: Collection Fees and Charges—Electric, we would be able to assess
electric charges. These amendments are attached for your review.
ACTION REQUESTED:
Staff recommends the adoption of the proposed amendment to ERMU policy, and recommendation of the
City ordinance amendment to be taken to the City Council for approval.
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CITY COUNCIL
CITY OF ELK RIVER
ORDINANCE NO. 13-
AN ORDINANCE ADOPTING NEW SECTION 78-332 OF THE CITY OF ELK RIVER
CODE OF ORDINANCES WHICH AUTHORIZES THE CITY CLERK TO CERTIFY
UNPAID ELECTRIC SERVICE FEES, CHARGES AND COSTS TO THE COUNTY
FOR COLLECTION WITH REAL ESTATE TAXES.
WHEREAS, Section 78-43 of the City of Elk River Code of Ordinances authorizes the City
Clerk to certify unpaid water service fees, charges and costs to the County for collection with real
estate taxes as authorized by Minnesota Statutes Section 444.075, subd. 3e; and
WHEREAS, Minnesota Statutes Section 366.012 authorizes Minnesota towns to certify
unpaid electric service charges for collection with taxes; and
WHEREAS, Minnesota Statutes Section 415.01 gives Minnesota municipalities all powers
granted to Minnesota towns;and
WHEREAS, the City of Elk River, therefore, has the authority to certify unpaid electric
services charges for collection with real estate taxes.
NOW, THEREFORE, the City Council of the City of Elk River does hereby ordain as
follows:
Section 1. The City of Elk River Code of Ordinances shall be amended to add new
Section 78-332 thereto, as follows:
Sec. 78-332. Collection of Fees and Charges.
All electric service fees, and all charges and costs charged to a property pursuant to
this Article and/or the Rules and Regulations of ERMU, which remain unpaid 30
days after the due date, may be certified by the City Clerk to the County for
collection with real estate taxes. In addition, no property which has been
disconnected from electric service will be reconnected unless and until all unpaid
fees, charges and costs have been paid in full.
Section 2. That this Ordinance shall take effect upon adoption and be published as
provided by law.
Adopted by this day of , 2013.
_John J. Dietz
Mayor
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•
ATTEST:
Tina Allard
City Clerk
695262DOCX
2
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Proposed Amendment to Elk River Municipal Utilities
Policy 6.0 Deposits and Related Services Policies
Add new Section 14.0(B) as follows:
(B) ERMU may provide a list of unpaid fees, charges and costs
charged to a property and unpaid for 30 days after the due date to
the City Clerk with a request that the unpaid amounts be certified
by the City Clerk to the County for collection with real estate taxes,
as authorized by Minnesota Statutes and the City of Elk River Code
of Ordinances.
695263.DOCX
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